Meihua Holdings Group Co. Ltd.-Annual Report 2025
Stock Code: 600873 Stock Abbreviation: Meihua Bio
Meihua Holdings Group Co. Ltd.Annual Report 2025
This is an English translation from the Annual Report 2025 in case of
any inconsistency the Chinese Version shall prevail.
1 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Important Information
I. The Company’s board of directors directors and officers guarantee that the contents of this
annual report are true accurate and complete without any false records misleading statements
or material omissions and bear joint and several legal liability.II. All of the Company’s directors have attended the board meeting.III. RSM China CPA LLP (Special General Partnership) has issued an unqualified audit report
for the Company.IV. Wang Aijun the principal of the Company Wang Lihong the accounting principal and
Wang Ailing the principal of the accounting body (the accounting officer) hereby declare that
they guarantee the truthfulness accuracy and completeness of the financial report in the annual
report.V. Profit distribution plan or capital reserve conversion plan for the Reporting Period as
approved by the Board
Upon deliberation and approval of the 2nd meeting of the 11th session of the board of directors the
profit distribution plan (proposal) for 2025 is as follows: The Company plans to distribute cash
dividends based on the total share capital registered on the equity distribution record date (after
deducting shares in the share repurchase account). A cash dividend of 0.4279 yuan per share (inclusive
of tax) will be distributed to all shareholders. As of December 31 2025 the Company had a total share
capital of 2804241650 shares based on which the estimated total cash dividend distribution amounts
to 1199935002.04 yuan (inclusive of tax).The plan is yet to be submitted to the general meeting for deliberation. The amount that is actually
distributed will be subject to the notification on equity distribution published by the Company. If there is
any change in the Company’s total share capital before the registration date of equity distribution the
total amount to be distributed will remain unchanged and the distribution proportion per share will be
adjusted accordingly.The total cash dividends expected to be distributed by the Company for 2025 together with
204301265.44 yuan used for share buyback and cancellation in 2025 represents approximately 42.80%
of the net profit attributable to shareholders of the listed company for 2025.As of the end of the reporting period the parent company's uncovered losses and their impact on
matters such as the company's dividend distribution.□Applicable √Not applicable
VI. Risk Disclosure on Forward-Looking Statements
√ Applicable□ Not applicable
2 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
This annual report involves forward-looking descriptions such as future plans and such statements
do not constitute material commitments for investors. Investors are reminded to pay attention to the risk
of investment.VII. Any occupation of funds by the controlling shareholder or other affiliates for non-operating
purposes
No
VIII. Any external guarantee that violates the decision-making procedures
No
IX. Is it the case that more than half of the directors cannot guarantee the truthfulness accuracy
and completeness of the annual report disclosed by the Company
No
X. Warning of Key Risks
For the details of the risks facing the Company refer to the “Potential Risks” part in “Section 3Discussion and Analysis by the Management” and the “Risks Related to Financial Instruments” part in
“Section 8 Financial Report”.XI. Miscellaneous
□Applicable √Not applicable
3 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Contents
Section 1 Definitions ................................5
Section 2 Company Overview and Key Financial Indic....9
Section 3 Discussion and Analysis by the Managemen.. 14
Section 4 Corporate Governance Environmental and S...52
Section 5 Significant Matters ...................... 82
Section 6 Share Changes and Shareholders ........... 99
Section 7 Information on Securities ............... 108
Section 8 Financial Report ........................ 108
Financial statements signed and sealed by the Company’s principal the accounting principal and the
principal of the accounting body (the accounting officer)
List of
The original of the audit report sealed by the CPAs firm and signed and sealed by the certified public
documents for
reference accountants
The originals of the Company’s documents and announcements disclosed on the website of the
Shanghai Stock Exchange during the Reporting Period
4 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Section 1 Definitions
I. Definitions
In this report the terms below have the following meanings unless the context otherwise requires:
Definitions of common terms
Company the Company
the listed company Meihua
Meihua Holdings Group Co. Ltd. whose stock name is “Meihua Bio” and
Bio Meihua Group or means
stock code is 600873.Meihua Company
Meihua
Tongliao Meihua Biotech Co. Ltd. a wholly-owned subsidiary of the
Tongliao Meihua means
Company.Tongliao Jianlong Chemical Co. Ltd. a wholly-owned subsidiary of
Tongliao Jianlong means
Tongliao Meihua.Tongliao Base or Tongliao the production base located in Tongliao of the Inner Mongolia autonomous
means
Company region as formed by Tongliao Meihua and Tongliao Jianlong.Xinjiang Meihua Amino Acid Co. Ltd. a wholly-owned subsidiary of the
Xinjiang Meihua means
Company.Wujiaqu Jianlong Chemical Co. Ltd. a wholly owned subsidiary of
Wujiaqu Jianlong means
Xinjiang Meihua.the production base in the Wujiaqu Industry Park located in the Xinjiang
Xinjiang Base or Xinjiang
means Uygur autonomous region where Xinjiang Meihua and Wujiaqu Jianlong
Company
are located.Jilin Meihua Amino Acid Co. Ltd. a wholly-owned subsidiary of the
Jilin Meihua means
Company.Jilin Base Baicheng Base the production base located in Baicheng of Jilin where Jilin Meihua Amino
means
or Jilin Company Acid Co. Ltd. is located.Three production bases or the Company’s production bases in Tongliao of Inner Mongolia Wujiaqu of
means
all production bases Xinjiang and Baicheng of Jilin.Meihua Group International Trade (Hong Kong) Co. Ltd. a wholly-owned
Hong Kong Meihua means
subsidiary of the Company.Lhasa Meihua Bio-investment Holdings Co. Ltd. a wholly-owned
Lhasa Meihua means
subsidiary of the Company.Zhuhai Hengqin Meihua Biotech Co. Ltd. a wholly-owned subsidiary of
Hengqin Meihua means
the Company.HONGKONGPLUMHOLDINGLIMITED a wholly-owned subsidiary of
Hong Kong Holdings means
Hengqin Meihua.CAYMANPLUMHOLDINGLIMITED a wholly-owned subsidiary of
Cayman Company means
Hong Kong Holdings.PLUMBIOTECHNOLOGYGROUPPTE.LTD. a wholly-owned subsidiary
Singapore Company means
of Cayman Company.Singapore spv SPV
PLUMINO PRECISION FERMENTATION HOLDINGS PTE.LTD. a
Plumino Plumino means
wholly-owned subsidiary of Singapore Company.Company Plumino
RSM RSM China CPA means RSM China CPA LLP (Special General Partnership)
5 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
LLP
Zandar or Zandar Zandar (Shenzhen) CPAs LLP (Special General Partnership) (formerly
means
(Shenzhen) CPAs LLP known as Da Hua CPAs LLP (Special General Partnership))
CSRC means the China Securities Regulatory Commission.SSE or the Stock Exchange means the Shanghai Stock Exchange.CSDC Shanghai means China Securities Depository and Clearing Co. Ltd. Shanghai Branch.the amino acids used as feed supplement for animal nutrition which can
Amino acids for animal enhance the effects of feed improve the utilization of feed and supplement
means
nutrition and balance nutrition. The amino acids for animal nutrition produced by the
Company include lysine threonine methionine and valine.
26-Diaminohexanoic acid the only amino acid with side-chain primary
amine in proteins. It is an amino acid and ketogenic amino acid essential for
mammals. The common L-lysine is one of the 20 amino acids that make up
proteins. Depending on content lysine is classified into L-lysine
hydrochloride (commonly known as the 98% lysine) and L-lysine sulfate
Lysine means
(commonly known as the 70% lysine). The addition of lysine to feed
improves meat quality increases the ratio of lean and refines meat texture.It increases the utilization of feed proteins and reduce the dosage of crude
protein. It also reduces piglet diarrhea cuts feeding costs and increases
economic returns.
2-Amino-3-hydroxybutanoic acid an aliphatic α-amino acid that contains an
alcoholic hydroxyl. It is an amino acid and ketogenic amino acid essential
for mammals. The common L-threonine is one of the 20 amino acids that
Threonine means
make up proteins. Threonine is an essential amino acid. Threonine is often
added to the feed for piglets and poultry. It is the first limiting amino acid in
pig feed and the third limiting amino acid in poultry feed.
2-amino-3-methylbutanoic acid a branched-chain non-polar α-amino acid
that contains five carbon atoms. It is an amino acid and glycogenic amino
acid essential for mammals. The common L-valine is one of the 20 amino
Valine means
acids that make up proteins. The addition of valine to sow feed can help
increase lactation yield. It also helps improve animals’ immunity and affects
endocrine.Corn gluten meal is a byproduct of the manufacture of starch from maize
grain in the food industry or its purification in the brewing industry. It is
rich in protein nutrients has a special taste and color and can be used as
Starch byproduct protein
feed. Corn husk powder (feed fiber) is a byproduct of the manufacturing
powder feed fiber germ means
process of manufacturers engaged in the deep processing of corn. It is
mycoprotein etc.produced from maize grains being soaked put into starch production
washed squeezed and dried. Its main components include fiber starch and
proteins.The food additives (flavor enhancers) produced by the Company. It refers to
Food taste and trait artificial or natural substances that are added to food for the purpose of
means
improving products improving food quality color smell and taste as well as for preservation
and processing.MSG means 99% MSG refers to monosodium glutamate. The key composition of MSG
6 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
is glutamic acid monosodium salt which is produced from the microbial
fermentation purification and refinement of saccharic or starch raw
materials. The finished product is white columnar crystal or crystalline
powder. As a basic flavoring agent MSG not only enhances the taste of
dishes and stimulates appetite but also stimulates the secretion of digestive
juice thereby helping food digestion and absorption in human bodies.a substance composed of disodium 5’-inosine (IMP) and disodium
Disodium 5’-ribonucleotide means 5’-guanosine (GMP) in a 1:1 proportion. It is mostly used in condiments or
condiment blends with MSG to enhance taste.a safe and reliable natural sugar with the superb ability to maintain cell
viability and biomacromolecular activity. It is known as the “sugar of life”
in the science community. With a moderately sweet taste it serves as a
Trehalose means unique food ingredient that prevents food deterioration inhibits nutrient
deterioration preserves food flavors and improves food quality. It is also an
important ingredient for cosmetics that maintain cell viability and preserve
moisture. It is generally recognized as safe (GRAS) by the FDA.are also known as pharmaceutical amino acids. The Company’s
pharmaceutical amino acids are mainly divided into two parts. One is amino
acid products including L-glutamine branched-chain amino acids
(L-isoleucine L-valine and L-leucine) and L-proline etc. which are
Amino acids for human mainly used as upstream raw materials for sports nutrition food food for
means
medical purposes special medical purposes and drugs. The other part is pharmaceutical
intermediate raw materials including L-proline and nucleoside (inosine
guanosine and adenosine) which are mainly used as upstream raw
materials for drugs that treat chronic diseases (such as hypertension
diabetes hepatitis B etc.).L-proline (known as proline for short) is one of the 18 amino acids for the
human body to synthesize proteins. It is an important raw material for
amino acid transfusions as well as a key intermediate for synthesizing
Proline means first-line antihypertensive drugs such as captopril and enalapril. It is widely
applied in food and pharmaceutical industries. The Company produces
L-proline through corn fermentation which is free of all the chemical
reagents added in synthesis and is thus safer.with the scientific name of 2-amino-4-formamide butyric acid is the amide
of glutamic acid. L-glutamine is the coding amino acid in protein synthesis
and an amino acid essential for mammals. In vivo it can be converted from
glucose. Glutamine prevents muscle breakdown and promotes muscle
Glutamine means
growth. It is an important nutrition supplement for bodybuilders and
bodybuilding enthusiasts. It also improves human immunity and antioxidant
capacity. It has superb healthcare and even medical effects for the
gastrointestinal and digestive systems.L-isoleucine is one of the 20 common amino acids that make up proteins. It
Isoleucine means contains two asymmetric carbon atoms and is an amino acid and ketogenic
amino acid essential for mammals.Leucine means L-leucine is one of the 20 common amino acids that make up proteins. It is
7 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
an amino acid and a ketogenic and glycogenic amino acid essential for
mammals. Leucine isoleucine and valine are all branched-chain amino
acids which help promote muscle recovery after training. In particular
leucine is a very effective branched-chain amino acid that effectively
prevents muscle loss as it is able to break down faster into glucose.a water-soluble polysaccharide produced from the fermentation of
Aureobasidium pullulans. Pullulan can be processed into a variety of
products. With superb film-forming properties it forms highly stable
pullulan film. It also has excellent oxygen isolation performance. In
Pullulan means
pharmaceutical and food industries it is widely used in capsule molding
agents thickeners adhesives and food packaging. Pullulan has been used as
food accessories for more than 20 years in Japan and is generally recognized
as safe (GRAS) by the FDA.a monospore polysaccharide from the fermentation of pseudoxanthomonas.It offers many functions due to its special macromolecular structure and
colloidal characteristics. It is widely used in different fields as emulsifiers
Xanthan gum means
stabilizers gel thickeners impregnating compounds and film molding
agents. Xanthan gum is a microbial polysaccharide in mass production with
broad applications around the world.the fertilizers containing organic substances that provide multiple inorganic
Bio-organic fertilizers means
and organic nutrients for crops and fertilize and improve soil.Manufacturing Execution System (MES) is a key component of smart
manufacturing. It optimises production processes and enhances efficiency
and quality through functions such as real-time monitoring data collection
and analysis and production scheduling. The core functions of MES include
MES means production planning management materials management quality control
equipment maintenance and personnel management. Through real-time data
collection and feedback MES is able to dynamically adjust production
plans optimise resource allocation reduce waste and enable comprehensive
traceability of product quality.Artificial Intelligence (AI) is the science of studying developing and
applying theories methods and applications for simulating extending and
enhancing human intelligence. Its essence lies in using data as fuel
computing power as an engine and algorithms as a brain thereby through
AI means machine learning and especially deep learning endowing machines with the
ability to perceive reason and generate. Currently cognitive
intelligence—represented by large language models and generative AI—is
driving a paradigm shift in technology from ‘discrimination’ to ‘creation’
becoming the core force behind industrial transformation.Human Milk Oligosaccharides which are a type of complex oligosaccharide
composed of monosaccharides derivatives sialic acid and other structural
units linked by glycosidic bonds. Over 150 types of HMO structures have
HMO means
been identified in human milk. As the third most abundant solid component
in human breast milk after lactose and fat HMO plays a crucial
physiological role. HMOs are vital for infant growth and development both
8 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
in the short and long term. They promote the balance of the intestinal
microecology in infants stimulate the growth of beneficial bacteria inhibit
the growth of harmful bacteria prevent the colonization of pathogenic
bacteria regulate the immune system and support cognitive development in
infants.Kirin Holdings Company Limited a company listed on the Tokyo Stock
Exchange with the stock code 2503.T. Founded in 1907 and headquartered
Kirin Holdings means in Tokyo Japan it is a global leader in beverage and food manufacturing
with business operations spanning multiple sectors including beer soft
drinks health products and pharmaceuticals.Kyowa Hakko Bio Co. Ltd. a wholly-owned subsidiary of Kirin Holdings.It is a global leader in the biotechnology and fermentation industries
Kyowa Hakko Bio Japan
means specializing in the development and production of high-quality amino acids
Kyowa
and other novel synthetic biology products for pharmaceutical food and
industrial applications.a reaction process in which massive metabolites are produced and
Fermentation means accumulated through the growth and chemical changes of microorganisms
(or animal/plant cells).Bio-fermentation refers to the process by which organic raw materials are
converted into target products through metabolic activity carried out by
microorganisms or enzymes under suitable conditions. Essentially it utilises
the metabolic mechanisms and biocatalytic action of living organisms to
achieve the efficient conversion and synthesis of substances encompassing
Bio-fermentation means
industrial applications ranging from traditional food brewing to modern
pharmaceuticals and new materials. As a core technology of synthetic
biology and green manufacturing bio-fermentation is driving the transition
of production models towards low-carbon and sustainable practices
becoming a vital pillar of the bioeconomy era.a process that uses microorganisms as cell factories to produce specific
functional components. In general terms scientists change the genes of
Precision fermentation means
selected microorganisms based on specific designs and their genes are
programmed to produce specific fermentation products.Section 2 Company Overview and Key Financial Indicators
I. Company Information
Chinese name 梅花生物科技集团股份有限公司
Short Chinese name 梅花生物、梅花集团
English name MeiHua Holdings Group Co. Ltd.Abbreviation MEIHUABIO MeiHuaGroup
Legal representative Wang Aijun
II. Contact Person and Contact Information
Board Secretary
Name Liu Xianfang
9 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
66 Huaxiang Road Langfang Economic and Technological
Address
Development Zone Hebei Province
Tel 0316-2359652
Fax 0316-2359670
Email mhzqb@meihuagrp.com
III. Basic Profile
Unit 5 Building 11 Yangguang Xincheng 158 Jinzhu West Road
Registered Address
Lhasa Xizang Autonomous Region
In January 2018 the company’s registered address was changed
from ‘No. 189 Jinzhu West Road Lhasa’ to ‘Unit 5 Building 11
Changes in the registered address
Yangguang Xincheng 158 Jinzhu West Road Lhasa’. For further
details please refer to the company’s Announcement No. 2018-002.
66 Huaxiang Road Langfang Economic and Technological
Office address
Development Zone Hebei Province
Postal code of the office address 065001
The company completed a full upgrade of its official website in
Website February 2025. The new URL for the official website is
https://www.meihua.group
Email mhzqb@meihuagrp.com
IV. Places of Information Disclosure and Report Placement
Shanghai Securities News (www.cnstock.com) China Securities
Names and websites of media where the Company
Journal (www.cs.com.cn) Securities Times (www.stcn.com) and
discloses annual reports
Securities Daily (www.zqrb.cn)
The stock exchange website where the Company
www.sse.com.cn
discloses annual reports
Place where the Company prepares and keeps
The Company’s securities department and Shanghai Stock Exchange
annual reports
V. Company’s Stock Information
Company’s Stock Information
Stock Exchange for the
Stock name before
Stock type listing of the Stock name Stock code
change
Company’s stock
Shanghai Stock
A-share Meihua Bio 600873 Meihua Group
Exchange
VI. Other Relevant Information
Name RSM China CPA LLP (Special General Partnership)
1001-1 to 1001-26 10th Floor Building 1 22
CPA firm appointed by the Company Office address
Fuchengmenwai Street Xicheng District Beijing
(domestic)
Names of signing
Gong Chenyan Li Qianqian
accountants
10 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
VII. Key Accounting Data and Financial Indicators for the Last Three Years
(I). Key Accounting Data
Unit: yuan Currency: RMB
Increase/decrease
Key accounting data 2025 2024 over same period 2023
last year (%)
Revenue 24208675106.70 25069288294.62 -3.43 27760612259.07
Total profit 3729699988.92 3349460691.13 11.35 3723135620.15
Net profit attributable to the
3280879912.102740427215.5619.723180949695.48
shareholders of the listed company
Net profit attributable to the
shareholders of the listed company
2205459805.052696673816.43-18.223083801516.17
after deducting non-recurring profit or
loss
Net cash flows from operating
4009259646.234626714790.47-13.355228937084.88
activities
Increase/decrease
At the end of 2025 At the end of 2024 over same period At the end of 2023
last year (%)
Net assets attributable to the
16347570415.5614574945300.9312.1614163014813.67
shareholders of the listed company
Total assets 25915976725.38 23809558011.66 8.85 23157179855.25
(II). Key Financial Indicators
Increase/decrease
Key financial indicators 2025 2024 over same period 2023
last year (%)
Basic earnings per share (yuan/share) 1.17 0.94 24.47 1.06
Diluted earnings per share (yuan/share) 1.17 0.94 24.47 1.06
Basic earnings per share after deducting non-recurring
0.780.92-15.221.03
profit or loss (yuan/share)
Increase by 2.44
Weighted average return on equity (%) 21.48 19.04 23.48
percentage points
Weighted average return on equity after deducting Decrease by 4.30
14.4418.7422.76
non-recurring profit or loss (%) percentage points
Notes to the Company’s key accounting data and financial indicators for the last three years as at the end
of the Reporting Period
□Applicable √Not applicable
11 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
VIII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(I). Differences in the net profit and the net profit attributable to the shareholders of the listed
company in the financial report disclosed in accordance with both the international accounting
standards and the Chinese accounting standards
□ Applicable √Not applicable
(II). Differences in the net profit and the net profit attributable to the shareholders of the listed
company in the financial report disclosed in accordance with both the foreign accounting
standards and the Chinese accounting standards
□Applicable √Not applicable
(III). Explanation of differences between domestic and foreign accounting standards
□Applicable √Not applicable
IX. Key Financial Indicators for 2025 by Quarter
Unit: Yuan Currency: RMB
Q1 Q2 Q3 Q4
(January-March) (April-June) (July-September) (October-December)
Revenue 6268563075.46 6011887528.07 5934996741.47 5993227761.70
Net profit attributable to the shareholders of
1018706366.46749243750.431257142238.16255787557.05
the listed company
Net profit attributable to the shareholders of
the listed company after deducting 904569095.36 723794009.04 391112036.37 185984664.28
non-recurring profit or loss
Net cash flows from operating activities 453267070.69 1859524149.94 2398368777.71 -701900352.11
Explanation of differences between the quarter-based data and the data in the disclosed periodic reports
□ Applicable √Not applicable
X. Non-recurring Items and Amounts
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Notes (if
Non-recurring item Amount for 2025 Amount for 2024 Amount for 2023
applicable)
Gains or losses from the disposal of non-current assets
including the write-offs of the accrued provisions for -36929707.83 -35923166.36 -38915902.24
asset impairment
Government grants recognized in the profit or loss
excluding government grants that are closely related to
the Company’s normal operations conform with
228086329.20205965697.82240560349.82
national policies are enjoyed in accordance with
established standards and have continuous impact on
the Company’s profit or loss
Gains or losses from fair value changes arising from the
financial assets and financial liabilities held by 70432176.42 30307317.28 -35150749.48
non-financial enterprises and gains or losses from the
12 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
disposal of financial assets and financial liabilities
except for the effective hedging associated with the
Company’s normal operations
Fund possession fees collected from non-financial
enterprises that are recognized in the profit or loss
Gains or losses from the entrusted investment or
management of assets
Gains or losses from external entrusted loans
Losses on assets arising from force majeure factors
such as natural disasters
Reversal of provisions for the impairment of accounts
receivable for which the impairment test is conducted 1861963.30
separately
Gains from the investment costs of the Company for
the acquisition of subsidiaries associates and joint
ventures being less than the fair value of the investees’ 831441015.05
identifiable net assets due to the Company at the
acquisition of investment
Net profit or loss of subsidiaries formed through
business combinations under common control for the
period from the beginning of the Reporting Period to
the combination date
Gains or losses from the exchange of non-monetary
assets
Gains or losses from debt restructuring
Non-recurring expenses of the Company arising from
the discontinuation of relevant operating activities such
as expenses for staff resettlement
Once-off effect of adjustments to tax and accounting
laws and regulations on the profit or loss
Share payment expenses recognized once off due to the
cancellation or change of the share incentive plan
For share payment in cash gains or losses from
changes in the fair value of staff remuneration payable
after the vesting date
Gains or losses from changes in the fair value of
investment property that is subsequently measured in
the fair value model
Gains from transactions with obviously unfair
transaction prices
Gains or losses from contingencies irrelevant to the
28618647.27-1549545.75-45888616.17
Company’s normal operations
Trusteeship income from trusteeship business
Other non-operating income and expenditure than the
-1657569.77-105868972.90-1380228.88
above
13 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Other profit or loss items that fall within the definition
of the non-recurring profit or loss
Less: effect of income tax 44570783.29 49177930.96 23938637.04
effect of minority interest (after tax)
Total 1075420107.05 43753399.13 97148179.31
For items not listed in the Explanatory Announcement for Information Disclosure by Companies that
Issue Securities to the Public No. 1 - Non-recurring Profits and Losses but considered as non-recurring
profits and losses with significant amounts as well as items defined as recurring profits and losses in the
Explanatory Announcement for Information Disclosure by Companies that Issue Securities to the Public
No. 1 - Non-recurring Profits and Losses the Company should provide reasons for such classification.□ Applicable √Not applicable
XI. Companies with equity incentive plans or employee stock ownership plans may choose to
disclose net profit after adjusting for the impact of share-based payments.□ Applicable √Not applicable
XII. Items Measured at Fair Value
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Amount of impact
Item Opening balance Closing balance Change
on the profit
Financial assets held for trading 312033611.07 1140377416.70 828343805.63
61582264.32
Other non-current financial assets 282005000.00 282005000.00
Derivative financial assets 2061300.00 2061300.00
6856503.34
Derivative financial liabilities 297500.00 -297500.00
Other equity instrument investments 441294280.00 301966810.00 -139327470.00 3308800.00
Accounts receivable financing 26723054.99 17978363.00 -8744691.99 171.96
Total 780348446.06 1744388889.70 964040443.64 71747739.62
XIII. Miscellaneous
□ Applicable √Not applicable
Section 3 Discussion and Analysis by the Management
I. Overview of the Company’s Businesses during the Reporting Period
Meihua Bio is a global leader in the large-scale production of amino acids using synthetic biology
technologies.During the reporting period the products produced by the Company include:
* Amino acids for animal nutrition: lysine threonine tryptophan feed-grade lysine starch
byproduct feed fiber corn germ mycoprotein MSG residue etc.* Food taste and trait improving products: glutamic acid monosodium glutamate Disodium
5’-ribonucleotide disodium inosinate food-grade xanthan gum trehalose etc.
* Amino acids for human nutrition and medical purposes: glutamine proline leucine
isoleucine pharmaceutical valine inosine guanosine adenosine pullulan Vitamin B2 histidine
arginine etc.* Other products: petroleum-grade xanthan gum bio-organic fertilizers etc.
14 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The Company operates under an integrated business model encompassing research and
development production and sales. During the reporting period there were no material changes to this
model.During the reporting period the Company focused on advancing the acquisition and integration of
projects related to Kyowa of Japan successfully completing the entire process from asset transfer to
business handover. As a result the Company has added high-end pharmaceutical amino acid products
and related businesses to its portfolio.Explanation of the Company’s new significant non-core businesses during the reporting period
□ Applicable √Not applicable
II. Industry Overview
Based on the Guiding Catalogue of Key Products and Services for Strategic Emerging Industries
(2016 Edition) issued by the National Development and Reform Commission (NDRC) the Company’s
main products fall within the “bio-manufacturing industry of the biological industry.” Hence the
Company is in the bio-manufacturing industry.Biomanufacturing is an advanced production method centered on industrial biotechnology. It is a
manufacturing process that leverages cutting-edge biotechnologies such as genetic engineering and
synthetic biology to utilize the physiological metabolic functions or catalytic capabilities of
microorganisms cells enzymes and other living organisms. Through industrial fermentation processes
it enables the large-scale production of target products covering a full range of categories including food
and food additives biopharmaceuticals bio-based materials bulk chemicals and energy.Synthetic biology is a disruptive technology that integrates knowledge and techniques from
multiple disciplines—including biology engineering and computer science—to design modify
reconstruct and even artificially synthesize living organisms according to engineering principles. It aims
to construct artificial biological systems with specific functions to enable innovative applications in
fields such as biomedicine and biomanufacturing.(I) Industry Scale
According to a McKinsey analysis the annual economic impact of biomanufacturing is projected to
reach $1.7 trillion to $3.6 trillion between 2030 and 2040 with biomanufactured products expected to
account for approximately 70% of chemically manufactured goods. Boston Consulting Group (BCG)
forecasts that by the end of the 21st century biomanufacturing will be applied in one-third of the global
manufacturing sector with the potential to generate $30 trillion in economic value.(II) Industry Outlook
1. Global Expansion and Ongoing Policy Benefits
Synthetic biology is one of the core areas of global industrial competition and major developed
countries and regions have already incorporated it into their national strategies. The United States has
made synthetic biology-related biomanufacturing a priority for research and development and has
consolidated its technological advantages through the Biosecurity Act; the European Union has released
15 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
a new bioeconomy strategy that clearly establishes synthetic biology as a core pillar and accelerates the
commercialization of products.China views synthetic biology as key to fostering new productive forces and achieving self-reliance
in science and technology. At the national level the government has explicitly set a goal to establishmore than 20 pilot-scale biomanufacturing platforms by 2027 with a focus on bridging the “valley ofdeath” between R&D outcomes and industrialization. At the local level provinces and municipalities
have introduced targeted support policies focusing on the development of industrial clusters and the
creation of innovation sources to provide solid support for the industry’s high-quality development.
2. AI-Driven Transformation: Redefining R&D and the Industrial Ecosystem
AI is fundamentally reshaping the R&D paradigm in synthetic biology propelling the industry from
“trial and error” toward “precision design.”
AI is reshaping the industry’s R&D and industrial ecosystem: by integrating with automated
equipment to create “autonomous biological laboratories” it optimizes R&D processes and shortens
development cycles; by leveraging digital twins and biosensors to manage production it reduces
scale-up timelines and lowers investment costs; and by driving the penetration of synthetic biology into
multiple sectors it supports the “dual carbon” goals and the industry’s green transition.
3.The amino acid sector maintains its leading position driving the industrialization of
synthetic biology
China’s amino acid industry holds an absolute leading position in the global field of synthetic
biology applications. As the most mature and highly industrialized segment in this sector the industry
has taken the lead in achieving large-scale application of synthetic biology technologies and serves as a
global benchmark for the industrial implementation of synthetic biology.Breakthroughs in synthetic biology technologies can on the one hand effectively reduce
production costs and enhance production efficiency for existing amino acid products; on the other hand
they can continuously enrich the industry’s product portfolio accelerate the R&D and iteration of new
products and steadily fill market gaps in niche segments such as high-end pharmaceutical and specialty
amino acids; simultaneously synthetic biology has broken through the traditional boundaries of the
industry. Leveraging its robust industrial foundation and the rapid advancement of AI China’s amino
acid industry will continue to expand its applications into emerging fields such as non-grain
fermentation bio-based materials and bulk chemicals.(III) The Company’s Competitive Advantages in the Industry
1.Leading Scale: As a global leader in the amino acid industry the company holds the world’s
largest production capacity for lysine and threonine ranks second globally in MSG production and
leads the global market in xanthan gum. Through the acquisition of Kyowa Hakko Kogyo of Japan the
company has successfully entered the high-end pharmaceutical amino acid market further solidifying its
leading position.
2.Outstanding Full-Industry-Chain Advantages: Leveraging its mature biorefining industry and
biological technologies such as whole-genome sequencing bioinformatics analysis gene editing
16 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
metabolic engineering and cell culture the company has established a comprehensive
full-industry-chain for biomanufacturing. At the same time it has strategically planned and constructedmultiple pilot-scale platforms to achieve a closed-loop system spanning “R&D—pilottesting—engineering—scalable production.” On one hand this accelerates the implementation of new
microbial strains and processes into large-scale production driving continuous cost reductions; on the
other hand it enables the adoption of new technologies and products bridging the critical gap between
the laboratory and production thereby enriching the product portfolio and expanding the industry’s
boundaries.
3.Continuously Enhanced Global Competitiveness: Through years of accumulation the
company has established a comprehensive global operational service system and a replicable
management framework. Leveraging robust engineering capabilities and a professional international
management team we provide strong support for future mergers and acquisitions as well as overseas
greenfield investments steadily advancing our international expansion and moving toward the strategic
goal of becoming a “leading enterprise in synthetic biology.”
In summary leveraging its scale industrial chain advantages and ability to compete globally
Meihua Bio will continue to lead the global biotechnology industry and serve as a key driver of green
low-carbon and high-quality development in the biomanufacturing sector.III. Discussion and Analysis of Business Performance
In 2025 the company achieved operating revenue of RMB 24.209 billion a decrease of 3.43%
compared to the same period last year. During the reporting period production capacity for products
such as lysine and isoleucine continued to expand and both production and sales volumes increased
steadily. However due to the pass-through effect of falling raw material prices sales prices for major
products declined resulting in a slight year-over-year decrease in operating revenue. Net profit
attributable to shareholders of the listed company reached RMB 3.281 billion an increase of 19.72%
compared to the same period last year and non-recurring gains arising from the completion of a
cross-border asset acquisition increased net profit by RMB 831 million.During the reporting period the Company maintained strategic resolve and a long-term perspective.Seizing the opportunity presented by the successful implementation of the Kyowa project it accelerated
global resource integration and production capacity deployment to secure a leading position in the field
of synthetic biology. Concurrently the Company advanced its digital and intelligent transformation and
organizational capacity building thereby strengthening its core competitiveness amid the industry’s
profound restructuring.(I) The Kyowa Project Successfully Completed with Significant Improvements in Overseas
Acquisition and Integration Efficiency
To rapidly enhance its global product portfolio and overcome overseas technical and trade barriers
the company has prioritized overseas acquisitions and integration as a key driver for implementing its
globalization strategy. In 2025 the company focused on advancing the acquisition and integration of the
17 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Kyowa-related projects in Japan successfully completing the entire process from asset transfer to
business handover.The company has successfully achieved seamless integration and efficient collaboration between
the overseas team and its existing management system. By optimizing team structures standardizing
operational processes and upgrading production equipment the company has achieved technological
breakthroughs and a significant increase in production capacity. Notably the capacity utilization rate of
core products has increased by over 20% compared to pre-integration levels while unit production costs
have decreased by 15% year-over-year demonstrating outstanding integration results.This acquisition and integration not only enhanced the company’s global product supply network
and addressed regional supply gaps but also leveraged Kyowa’s established overseas distribution
channels to effectively boost the global visibility and core competitiveness of the company’s products
laying a solid foundation for future overseas market expansion and the deepening of its global footprint.Following the successful completion of the project the company carried out an internal strategic
reorganization integrating all acquired assets and operations into the newly established Plumino.Plumino serves not only as a key vehicle for the company’s globalization strategy but also as a
bridgehead for introducing advanced global technologies bearing the core mission of technological
upgrading and product innovation.(II) Plumino: A Global Technology Hub and Precision Fermentation Innovation Platform
Currently all assets and operations acquired in this transaction have been fully integrated into
Plumino. In line with the company’s strategic positioning its core business areas technological
strengths and future plans for differentiated operations are as follows:
1.New Core Business Areas: High-End Pharmaceutical Amino Acids and High-Value
Precision Fermentation Products
Through this integration the company has achieved a leap forward in expanding its business
portfolio extending comprehensively from traditional feed-grade and food-grade amino acids into
high-end niche markets such as pharmaceutical-grade amino acids amino acids for cell culture media
and cosmetic-grade amino acids. The product portfolio covers core categories such as arginine histidine
serine and glutamine as well as niche pharmaceutical-grade amino acids including alanine
branched-chain amino acids proline and phenylalanine. This has successfully addressed the previous
gaps in the high-end pharmaceutical amino acid business establishing a comprehensive multi-tiered
amino acid product system encompassing feed-grade food-grade and pharmaceutical-grade
categories.As a strategic hub for technology introduction Plumino will build upon its strengths in
pharmaceutical amino acids to focus on developing a precision fermentation technology platform with
the goal of producing more high-value active pharmaceutical ingredients through precision fermentation.Its applications will be further expanded into multiple high-value sectors including innovative drugs
immunomodulation foods for special medical purposes cell culture and cosmetics thereby
continuously enhancing its market competitiveness.
18 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
2. New Core Technological Advantages and Breakthroughs Following the Acquisition
(1) Comprehensive Industrial Chain Technology and Quality Control System: The company
possesses a complete industrial chain technology spanning from crude fermentation to
pharmaceutical-grade purification. It has fully inherited Kyowa’s pharmaceutical-grade amino acid
purification processes and rigorous quality control systems which have been refined over many years.The company maintains quality control capabilities that meet high international standards such as those
of the FDA and CEP featuring significant technological barriers that are difficult for competitors to
replicate.
(2) Global Intellectual Property Protection and Technological Integration Breakthroughs:
Through this acquisition the company has rapidly established a global intellectual property protection
network covering core synthetic biology products and key processes effectively circumventing
technological barriers in overseas markets. At the same time by combining the company’s deep
technical expertise in fermentation processes and strain improvement we have achieved two-way
technological integration and iterative upgrades particularly realizing major breakthroughs in the field
of precision fermentation technology with synergies fully demonstrated.
(3) Development of the Precision Fermentation Technology Platform: Leveraging the Plumino
platform the company has established an advanced R&D system for precision fermentation technology.This system enables targeted optimization of fermentation processes for specific high-value products
significantly enhancing production efficiency and product purity and laying a solid technical foundation
for the large-scale production of high-value products such as bio-API.
3. Future Business Strategy: Technology-Driven and Differentiated Development
Leveraging Plumino’s established international compliance and registration team the company will
implement a “technology-driven category-differentiated” development strategy moving forward. We
will focus on the R&D production and sales of core pharmaceutical amino acid products striving to
become an industry leader with scale cost and technological advantages. At the same time we will
actively pursue high-margin new projects to cultivate new growth drivers and achieve sustainable
development.
(1) Performance Goals and Technical Targets: Over the next five years Plumino aims to lead
the market by setting the highest standards in quality control and operational excellence. The company
plans to turn a profit by 2026 and double its revenue by 2030. In terms of technological breakthroughs
the company plans to file more than 15 patents in the field of precision fermentation.
(2) Core Product Strategy: Balancing Technological Advancement and Precision
FermentationPlumino’s core development strategy centers on “technology-driven innovation precisionfermentation and breakthroughs in high-end markets”:
Through precision fermentation technology the company focuses on cost optimization and capacity
expansion. In the high-end pharmaceutical amino acid sector leveraging existing regulatory compliance
and a rigorous quality control system Plumino will continue to consolidate its market position and
19 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
increase market share; In the food-grade amino acid sector we will expand our food-grade arginine
production lines and scale up operations. By applying new fermentation processes to enhance product
purity and stability we will improve production efficiency for arginine histidine and other products
while reducing energy consumption by more than 20%.
(3) New Business Strategy: Focusing on High-End Segments of the Pharmaceutical Industry
By focusing on high-end segments of the pharmaceutical industry we will utilize precision
fermentation to produce a wider range of high-value active pharmaceutical ingredients (APIs) and
actively pursue new projects with high profit margins and growth potential.(III) Focusing on innovation-driven development strengthening technological leadership and
securing a leading position in the field of synthetic biology
In 2025 the company launched the development of an intelligent R&D system based on an AI
Agent architecture as part of its efforts to build a synthetic biology platform. At the same time it
comprehensively advanced various initiatives including intellectual property strategy external
collaboration technology commercialization and talent development:
1.Strong Patent Portfolio Solid Institutional Foundation
Through the acquisition of relevant product technologies from Japan’s Kyowa the company has
rapidly established a global intellectual property protection network covering core synthetic biology
products and key processes effectively circumventing technical barriers in overseas markets; As of the
end of 2025 the company had filed a cumulative total of 337 patent applications (of which 115 have
been granted) including 40 applications filed throughout 2025 alone. These cover the entire technical
process—from strain screening and fermentation processes to product extraction—further consolidating
the company’s technological advantages.The company has iteratively refined multiple core systems related to the commercialization of
R&D outcomes establishing comprehensive standards for the entire process—from project initiation
implementation and acceptance to commercialization—and standardizing the use of R&D funds. This
has enabled standardized regulated and meticulous management of R&D projects effectively
enhancing R&D efficiency and mitigating R&D risks.
2.Leveraging World-Class Resources to Break Down Barriers in the High-End Market
During the reporting period the company proactively engaged with world-class research resources
reaching in-depth cooperation agreements with several internationally renowned research institutions
and leading scientists in the industry. By focusing on the industry’s technical pain points and challenges
the company collaborated on cutting-edge R&D and key technological breakthroughs effectively
addressing development bottlenecks such as low yields of certain strains and difficulties in product
extraction.Building on our global market strategy we will complete the registration of multiple products in the
EU and the U.S. by the end of 2025. The successful implementation of these compliance registrations
will not only effectively mitigate operational risks in overseas markets but also significantly enhance our
20 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
products’ competitiveness in gaining market access thereby strengthening the company’s position in the
international market.
3.Deep Integration of Research and Production Leads to Significant Gains in Efficiency
Through sustained R&D efforts the company successfully implemented the microbial strains and
process technologies for several core products in large-scale production in 2025. Thanks to technological
upgrades via the synthetic biology platform the metabolic efficiency of the new strains reached
industry-leading levels while the new processes demonstrated significant advantages in terms of high
stability and low cost. This not only substantially improved production efficiency but also further
strengthened the company’s technological competitiveness. These innovative achievements have
generated substantial new benefits laying a solid foundation for the company’s future high-quality
development.
4.A Pool of Top-Tier Talent with Comprehensive Capabilities Across the Entire Value Chain
The company adheres to a talent development strategy of “high-end leadership and tiered support.”
We have strategically recruited a number of PhDs in synthetic biology from renowned domestic and
international institutions covering key technical areas such as strain engineering and metabolic
regulation thereby strengthening our core R&D capabilities. At the same time we have refined our
internal training system. Through mentorship programs project-based training and external research
and training opportunities we have further solidified our core talent pipeline enhanced the team’s
overall innovation capacity and laid a solid talent foundation for our R&D efforts.(IV)AI Drives Digital and Intelligent Transformation Enhances Management and Enables
Leapfrog Growth
With the goal of building “data-driven smart manufacturing” the company established the
Production 4.0 Digital and Intelligent Transformation Office to systematically advance the deep
integration of AI technology with production management. By constructing an integrated production
operations platform centered on the MES the company has achieved a fundamental shift in management
from an “experience-driven” to a “data-driven” model laying a solid foundation for the intelligent
upgrade of the entire production process.The deployment of the MES follows an implementation strategy of “comprehensive coverageintegrated data and intelligence-driven operations” adopting a “unified platform plus regionaladaptation” architectural model. During the reporting period the system was fully implemented at the
three core production bases in Xinjiang Tongliao and Jilin establishing a digital management network
that covers all production stages and spans the entire process from raw material intake to finished
product shipment.The system’s core capabilities enable three major breakthroughs: First end-to-end visualized
control and management which uses real-time data collection and dynamic monitoring to visually
display production status key process parameters and equipment performance metrics allowing for
real-time oversight of the entire production process; second intelligent early warning and proactive
prevention which establishes capabilities for early identification and warning of production fluctuations
21 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
and equipment anomalies driving a shift in management from reactive response to proactive prevention;
third data traceability and decision-making support: establishing a comprehensive data archive
spanning the entire supply chain from raw materials to finished products to support production process
traceability process parameter optimization and business decision-making thereby providing
data-driven support for continuous improvement in production operations.(V)Linking Production and Sales Optimizing the Supply Chain and Building a
Comprehensive Competitive Advantage in the Market
In 2025 faced with a complex landscape marked by widespread industry-wide capacity expansionand intense market competition the company will adhere to the core principle of “securing supplythrough procurement expanding the market through sales and fostering synergy between productionand sales.” By coordinating procurement and sales efforts the company aims to ensure precise focus and
mutual reinforcement across both production and sales operations.Centered on the core strategies of “in-depth market analysis structural optimization and digital andintelligent empowerment” the company has achieved dual improvements in procurement cost reduction
and supply chain resilience. In raw material procurement the company leveraged its three major corn
procurement bases to conduct in-depth market analysis building inventory at opportune moments when
market prices were low thereby outperforming the market. For coal procurement the company
capitalized on the downward shift in market prices to optimize the structure of long-term contract
suppliers. Regarding chemical auxiliaries the company introduced suppliers from outside the region
through a “long-term contract as a foundation + market-based supplementary orders” approach thereby
optimizing the supplier structure. In terms of digital and intelligent empowerment the company
launched the Kingdee Xinghan Procurement Management System digitizing the entire procurement
process and driving a shift in decision-making from experience-based to data-driven. Regarding
supplier structure optimization the proportion of core strategic suppliers was increased to 36% and a
three-tier cultivation system - “potential strategic and core” - was established.In 2025 the company adhered to a strategy of “production-driven sales and full production andsales” continuously optimizing its sales model and customer structure resulting in a steady increase in
market share for its core products. The company maintained industry-leading market shares in threonine
lysine and MSG; the 80% lysine project achieved full production and sales within three months of
commencement. In response to the EU anti-dumping investigation the company leveraged its relative
tariff advantages and implemented measures such as global inventory allocation expansion into non-EU
regions and piloting off-site warehouses to effectively stabilize its foreign trade foundation. At the same
time the company continued to refine its standardized sales system achieving a steady year-over-year
10% growth in the number of regular customers while customer quality and sales retention continued to
improve.(VI)Corporate Culture Unites Hearts and Minds Laying the Foundation for High-Quality
Development
22 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Culture is the soul and core cohesive force of corporate development. In 2025 the company will
focus on fostering a strong sense of cultural identity among all employees and building a corporatecommunity of shared destiny. Adhering to a dual-drive strategy of “strengthening the enterprise throughtalent and revitalizing it through culture” we will reinforce employees’ sense of identity belonging and
mission by establishing solid institutional foundations creating a supportive work environment and
harnessing the power of our corporate culture.Laying a Foundation Through Systems: Using cultural transformation as a lever we have
achieved a deep integration of cultural development and standardized management driving a shift in the
management model from “reliance on leaders” to “reliance on systems.”
Creating a Welcoming Environment: Upholding our “people-oriented” cultural ethos we have
prioritized upgrading office and production environments as a key driver of cultural development
completing renovations and functional optimizations in multiple workshop offices and the technical
building.Building Cohesion Through Activities: We have organized cultural events such as the Meihua
Competition Cultural Festival and employee outings to foster a sense of unity. Additionally we have
held skills competitions on the MES and Feishu applications to promote learning and practical
application through competition thereby enhancing both professional capabilities and team
collaboration.Empowering Through Talent: The Company adheres closely to the philosophy of “EveryoneParticipates in Management; Creation and Sharing” promoting the deep integration of cultural
development and talent development. We uphold an incentive mechanism based on the principle of
“more work more pay; better performance better compensation” and strengthen our talent pipeline
through management rotation and competency certification. By incorporating the Company’s core
values into our training system we use culture to unite our talent and talent to carry forward our culture
thereby laying a solid foundation for the Company’s long-term development.Looking ahead the Company will strive toward the goals of becoming a “Lighthouse Factory” and
a leader in synthetic biology driving the Company toward higher-quality and more sustainable
development.IV. Analysis of Core Competitiveness during the Reporting Period
√ Applicable□ Not applicable
The Company’s core competitiveness is an organic whole driven by synergies across multiple
dimensions. It is powered by R&D innovation and the rapid commercialization of its outcomes
underpinned by end-to-end cost control and efficient operations grounded in a diversified product
portfolio and strategic scale propelled by global expansion and risk management and supported by a
distinctive organizational culture and talent system—all of which collectively build industry-leading
competitive barriers.(I)Integrating R&D and Production to Break Through Boundaries
23 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Leveraging long-term sustained investment in R&D and a deep foundation of technical expertise
the Company has assembled a core R&D team comprising professionals from renowned academic
institutions. We have established an in-house high-performance microbial strain platform capable of
optimizing fermentation processes specifically for high-value products. Furthermore through years of
R&D we have accumulated a vast amount of experimental and technical data. By deploying an
intelligent bioinformatics system based on an AI Agent architecture and integrating it with our
established global intellectual property network we are able to accelerate technology iteration cycles
and maintain a sustained technological lead.At the same time the Company has coordinated the planning and construction of multiple
pilot-scale platforms achieving seamless integration between the R&D process and the pilot-scale phase.This has enabled the Company to establish end-to-end capabilities spanning “R&D—pilot-scaletesting—engineering—mass production.” On the one hand this facilitates the rapid implementation of
new strains and processes while continuously reducing costs; on the other hand it allows the Company
to adopt new technologies and products thereby enriching its product portfolio and expanding the
boundaries of the industry.(II) Efficient Operations Cost Leadership
In terms of strategic layout in key production regions and vertical integration the Company
prioritizes the resource advantages of core raw materials when selecting production sites. Eachfacility has established a comprehensive industrial resource recycling system encompassing “cornprocessing—self-generated steam—wastewater treatment—biological organic fertilizer production”
providing an inherent advantage in cost leadership; In factory design and construction the Company
optimizes fixed asset investment through integrated design and reduces energy consumption
during operations. By precisely planning the capacity allocation for multiple products the Company
facilitates seamless integration and coordinated synergy between upstream and downstream processes
ensuring cost leadership; In operational management the Company possesses an exceptional
integrated operational system continuously strengthening organizational efficiency strictly enforcing
daily settlement and closure and leveraging process optimization digitalized collaborative control and
closed-loop performance evaluation mechanisms to continuously improve operational efficiency and
achieve cost leadership.(III) Diversified Product Portfolio: Weathering Market Cycles
The Company has established a product matrix centered on amino acids that spans multiple sectors
and encompasses a full range of product categories. By leveraging market demand differences and
hedging across various application areas the Company has effectively mitigated the performance
volatility associated with industry cycles in individual product lines. Thanks to its world-leading
production capacity and advantages in full-chain operations the Company maintains robust cash flow
security and operational stability across its entire business even when specific products are in a
downturn.
24 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(IV) From “Exporting Products” to “Exporting Capabilities”: Building New Competitive
Advantages in the Global Market
Through years of experience the Company has established a comprehensive global operational
service system and a replicable management framework and possesses the professional expertise to
navigate international trade disputes. Leveraging its specialized capabilities in global investment and
mergers and acquisitions the Company has further expanded its strategic scope for global resource
allocation and leapfrog development. By continuously building an intellectual property protectionsystem that spans the entire industrial chain the Company is steadily transitioning from “exportingproducts” to “exporting capabilities.”
Through diversified approaches such as overseas capacity expansion and localized operations we
aim to unlock value in regions with optimal resources. Moving forward the Company will continue to
optimize its global supply structure to achieve long-term leadership and high-quality development in the
global competitive landscape.(V) Cultivating a Cohesive Culture to Build a Talent Hub
The steady implementation of our four core pillars—R&D innovation end-to-end operations
product scale and global expansion—would not be possible without the strong support of our distinctive
organizational culture and comprehensive talent system. By establishing robust systems fostering a
supportive environment building a cohesive culture and empowering our talent the Company drives
the deep integration of cultural development and talent development.The Company upholds a distinctive organizational culture centered on “collective management andshared success” and has implemented multiple employee stock ownership plans to closely align the
Company’s growth with employees’ personal interests. At the same time it adheres to a strategy of
“combining recruitment with development” implementing the “Zhiyuan Plan” to focus on cultivating
high-caliber diverse talent and building a pool of professionals to support its global expansion and
business upgrades.V. Major Business Performance during the Reporting Period
During the reporting period the Company achieved operating revenue of RMB 24.209 billion a
decrease of 3.43% year-on-year; net profit attributable to shareholders of the listed company reached
RMB 3.281 billion an increase of 19.72% year-on-year. During the same period production capacity
for products such as lysine and isoleucine continued to expand and both production and sales volumes
increased steadily. However due to the pass-through effect of falling raw material prices sales prices for
major products declined resulting in a slight year-on-year decrease in operating revenue.(I). Analysis of Main Business
1. Analysis of changes in relevant items in the profit statement and the cash flow statement
Unit: Yuan Currency: RMB
Amount for the current Amount for the
Item Change (%)
period corresponding period in
25 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
the previous year
Revenue 24208675106.70 25069288294.62 -3.43
Operating costs 19609399374.08 20036698814.74 -2.13
Selling expenses 362971160.80 386866509.47 -6.18
General and administrative expenses 991548421.96 937932200.19 5.72
Financial expenses 4004552.27 -117263931.67 103.41
R&D expenses 389151493.26 382903265.05 1.63
Net cash flows from operating activities 4009259646.23 4626714790.47 -13.35
Net cash flows from investment activities -3144180718.04 -2648958807.71 -18.69
Net cash flows from financing activities -1007531918.24 -2738052283.69 63.20
Explanation of change in revenue: During the Reporting Period the Company’s revenue decreased
by 3.43% year-on-year to 24.209 billion yuan. Main reasons: Sales volume increased due to the ramp-up
of production capacity for products such as monosodium glutamate and isoleucine at the Company’s
subsidiaries as well as the commissioning of a new lysine production line. However driven by falling
raw material prices sales prices for key products—including monosodium glutamate xanthan gum
threonine and lysine—declined resulting in a decrease in operating revenue.Explanation of change in operating costs: During the Reporting Period the Company’s operating
costs decreased by 2.13% year-on-year to 19.609 billion yuan. Main reasons: Although the increased
sales volume of threonine xanthan gum and feed-grade valine drove up sales costs the overall decline
in raw material costs and improved production efficiency led to lower manufacturing costs resulting in a
decrease in total operating expenses.Explanation of change in selling expenses: During the Reporting Period the Company’s selling
expenses dropped by 6.18% year-on-year. Main reasons: A decrease in employee bonuses and external
consulting fees.Explanation of change in general and administrative expenses: During the Reporting Period the
Company’s general and administrative expenses increased by 5.72% year-on-year. Main reasons: An
increase in business from overseas companies.Explanation of change in financial expenses: During the Reporting Period the Company’s financial
expenses increased by 103.41% year-on-year. Main reasons: Both interest expenses and interest income
decreased during the period and foreign exchange gains also decreased due to fluctuations in exchange
rates in the foreign exchange market.Explanation of change in R&D expenses: During the Reporting Period the Company’s R&D
expenses increased by 1.63% year-on-year. Main reasons: The Company increased its R&D
investment during the period.Explanation of change in net cash flows from operating activities: During the Reporting Period the
Company’s net cash flows from operating activities dropped by 13.35% year-on-year. Main reasons: A
decline in the selling price of products during the current period caused cash flow from operating
activities to decrease compared to the same period last year.Explanation of change in net cash flows from investment activities: During the Reporting Period
26 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
the Company’s net cash flows from operating activities dropped by 18.69% year-on-year. Main reasons:
This was due to an increase in project investments and foreign investments during the period.Explanation of change in net cash flows from financing activities: During the Reporting Period the
Company’s net cash flows from financing activities increased by 63.21% year-on-year. Main reasons:
A decrease in dividend payments and share buybacks during the current period.Detailed explanation of significant changes in the Company’s business type profit composition or profit
sources during the Reporting Period
□ Applicable √ Not applicable
2. Analysis of Revenue and Costs
√ Applicable□ Not applicable
The Company achieved a revenue of 24.209 billion yuan a 3.43% decrease compared to the same
period last year. Operating costs amounted to 19.609 billion yuan with gross profit decreasing by 433
million yuan. However the gross profit margin increased by 1.08 percentage points compared to the
same period last year.The main factors for the change in revenue: sales volume increased due to the ramp-up of
production capacity for products such as MSG and isoleucine at the Company’s subsidiaries as well as
the commissioning of a new lysine production line; however a decline in market prices for key
products—including monosodium glutamate xanthan gum threonine and lysine—led to a decrease in
operating revenue.
(1).Main Business Performance by Industry Product Region and Sales Model
Unit: Yuan Currency: RMB
Main business performance by industry
Change in
Gross Change in
Change in gross profit
profit operating
By industry Revenue Operating costs revenue from margin from
margin costs from
prior year (%) prior year
(%) prior year (%)
(%)
Biological
23269783334.2218973852154.4218.46-4.64-2.97-1.40
fermentation
Pharmaceutical and
740403825.14495213216.6633.1255.4539.907.44
health
Main business performance by product
Change in
Gross Change in
Change in gross profit
profit operating
By product Revenue Operating costs revenue from margin from
margin costs from
prior year (%) prior year
(%) prior year (%)
(%)
Amino acids for
14201982767.5911243468450.9920.83-2.88-4.311.18
animal nutrition
Amino acids for
human nutrition and 740403825.14 495213216.66 33.12 55.45 39.90 7.44
medical purposes
27 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Food taste and trait
7469939525.436518857108.2812.73-5.981.86-6.72
improving products
Others 1597861041.20 1211526595.15 24.18 -12.81 -13.79 0.87
Main business performance by region
Change in
Gross Change in
Change in gross profit
profit operating
By region Revenue Operating costs revenue from margin from
margin costs from
prior year (%) prior year
(%) prior year (%)
(%)
Domestic 16875325367.19 13956612103.42 17.30 2.93 1.51 1.16
Foreign 7134861792.17 5512453267.66 22.74 -15.89 -10.52 -4.64
Main business performance by sales model
Change in
Gross Change in
Change in gross profit
profit operating
Sales model Revenue Operating costs revenue from margin from
margin costs from
prior year (%) prior year
(%) prior year (%)
(%)
Direct sales 13998171092.37 11420740683.44 18.41 1.15 0.41 0.60
Sales via agency 10012016066.99 8048324687.64 19.61 -9.31 -5.70 -3.08
“Direct sales” refers to sales made directly to end customers while “sales via agency” refers to sales
made to parties other than end customers.Explanation of main business performance by industry product region and sales model
1) During the Reporting Period the Company’s revenue from animal nutrition amino acid products
decreased by 2.88 percentage points year-on-year and gross profit margin increased by 1.18 percentage
points year-on-year. The revenue decrease was mainly due to the fact that the revenue growth from
higher sales volumes of lysine feed-grade isoleucine and other products could not offset the revenue
decline caused by the decrease in market prices; the increase in gross profit margin was primarily
attributed to the decrease in material costs and improvements in production efficiency which offset the
loss from the price decline.
2) During the Reporting Period the Company’s revenue from human nutrition and medical amino
acid products increased by 55.45% year-on-year and gross profit margin increased by 7.44%
year-on-year. The revenue growth was mainly attributable to higher sales volume and the expanded
production scale of the overseas plant acquired during the Period; the gross profit margin improvement
was mainly due to lower material costs and better production metrics.
3) During the Reporting Period the Company’s revenue from food taste and trait optimization
products decreased by 5.98 percentage points year-on-year and gross profit margin decreased by 6.72
percentage points year-on-year. The decline in both revenue and gross profit was primarily due to the
decrease in product prices during the Reporting Period.
4) During the Reporting Period the Company’s revenue from other products decreased by 12.81
percentage points year-on-year and gross profit margin increased by 0.87 percentage points
28 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
year-on-year. The decrease in revenue was mainly due to the decline in the price of petroleum-grade
xanthan gum.
(2).Analysis of Production and Sales
√ Applicable□ Not applicable
Change in Change in Change in
production sales from inventory
Main products Unit Production Sales Inventory
from prior prior year from prior
year (%) (%) year (%)
Amino acids for animal nutrition ton 2971563 2960445 70557 6.88 6.33 19.13
Amino acids for human nutrition
ton 10913 11884 5951 7.01 21.30 177.69
and medical purposes
Food taste and trait improving
ton 1158248 1135421 45283 17.21 13.64 101.66
products
Explanation of production and sales
1) Reasons for change in the production sales and inventory of amino acids for animal nutrition:
This is primarily due to the commissioning of a new lysine production line at our Jilin subsidiary during
the reporting period which has increased the output of lysine and by-products driving sales growth and
a corresponding rise in inventory.
2) Reasons for change in the inventory of amino acids for human nutrition andmedical purposes:
The increase in production sales and inventory is primarily due to the expansion of production and
operational scale following the acquisition of overseas factories.
3) Reasons for Changes in Inventory of Food Taste and Trait Optimization Products: During the
Reporting Period the Tongliao MSG project increased its production capacity leading to increases in
output sales and inventory.
(3).Performance of Significant Purchase Contracts and Significant Sales Contracts
□ Applicable √ Not applicable
(4).Analysis of Costs
Unit: Yuan Currency: RMB
By industry
Percent
age in Amount for the Percentage Percentage Exp
Amount for the
By industry Cost composition total corresponding in total of change lana
current period
costs period in prior year costs (%) (%) tion
(%)
Raw materials 13891847091.40 70.84 14298071563.34 71.36 -2.84
Energy 2890533743.64 14.74 3208997378.34 16.02 -9.92
Labor 649453622.42 3.31 680489396.71 3.40 -4.56
Biological
Manufacturing
fermentation 1542017696.96 7.86 1367181135.27 6.82 12.79
overhead
Total product
18973852154.4296.7519554739473.6697.60-2.97
manufacturing costs
29 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Pharmaceutical Product
495213216.662.53353986358.201.7739.90
and healthcare manufacturing costs
Sales of materials
140334003.000.72127972982.880.639.66
and others
Total 19609399374.08 100.00 20036698814.74 100.00 -2.13
By product
Percent
age in Amount for the Percentage Percentage Exp
Amount for the
By product Cost composition total corresponding in total of change lana
current period
costs period in prior year costs (%) (%) tion
(%)
Raw materials 8491435562.93 43.3 8881860825.26 44.33 -4.40
Energy 1613101100.76 8.23 1773842667.78 8.85 -9.06
Labor 328046597.75 1.67 327714152.66 1.64 0.10
Amino acids for
Manufacturing
animal nutrition 810885189.55 4.14 766484373.81 3.83 5.79
overhead
Total product
11243468450.9957.3411749902019.5158.65-4.31
manufacturing costs
Amino acids for
human nutrition Product
495213216.662.53353986358.201.7739.90
and medical manufacturing costs
purposes
Raw materials 5011074663.33 25.55 4910554061.19 24.51 2.05
Energy 828311987.96 4.22 873526025.63 4.36 -5.18
Food taste and Labor 193366654.53 0.99 225229876.48 1.12 -14.15
trait improving Manufacturing
486103802.462.48390204489.461.9524.58
products overhead
Total product
6518857108.2833.246399514452.7631.941.86
manufacturing costs
Product
Others 1211526595.15 6.17 1405323001.39 7.01 -13.79
manufacturing costs
Sales of materials
140334003.000.72127972982.880.639.66
and others
Total 19609399374.08 100.00 20036698814.74 100.00 -2.13
Other information regarding the analysis of costs
None
(5).Change in Consolidation Scope Caused by Share Changes in Key Subsidiaries during the
Reporting Period
□ Applicable √ Not applicable
(6).Significant Changes or Adjustments to the Company’s Businesses Products or Services during
the Reporting Period
□ Applicable √ Not applicable
(7).Information of Key Customers and Suppliers
Customers or suppliers under the control of the same controlling party shall be treated as a single
30 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
customer or supplier and presented on a consolidated basis except for those actually controlled by the
same state-owned asset management agency.Explanation of the consolidation of the following customer and supplier information based on the
principle of common control
None
A. Information of the Company’s key customers and Suppliers
√ Applicable □ Not applicable
Sales to the top five customers amounted to 2539781400yuan accounting for 10.48% of the total sales
for the year; in particular among sales to the top five customers sales to related parties were 0 yuan
accounting for 0% of the total sales for the year.No. Customer name Sales (yuan) Percentage in the totalsales for the year (%)
1 No. 1 642314209.83 2.65
2 No. 2 615951587.57 2.54
3 No. 3 472829749.88 1.95
4 No. 4 406736567.66 1.68
5 No. 5 401949281.96 1.66
6 Total 2539781396.90 10.48
Purchases from the top five suppliers amounted to 1419335300 yuan accounting for 8.3% of the total
purchases for the year; in particular among purchases from the top five suppliers purchases from
related parties were 0 yuan accounting for 0% of the total purchases for the year.No. Name of supplier Purchase amount (yuan) Percentage in the annualtotal purchase (%)
1 No. 1 417815383.59 2.44
2 No. 2 313245080.15 1.83
3 No. 3 253466022.94 1.48
4 No. 4 229387892.97 1.34
5 No. 5 205420949.21 1.20
6 Total 1419335328.86 8.30
B. Circumstance during the Reporting Period where sales from a single customer exceeded 50% of
the total there was any new supplier among the top five suppliers or the Company relied heavily
on a minority of suppliers
□ Applicable√ Not applicable
Circumstance during the Reporting Period where purchases from a single supplier exceeded 50%
of the total there was any new supplier among the top five suppliers or the Company relied
heavily on a minority of suppliers
□ Applicable √ Not applicable
C. During the reporting period the Company’s shares were subject to a delisting warning or other
risk warning
Top five customers
□ Applicable√ Not applicable
Top five suppliers
□ Applicable√ Not applicable
D. The Company generated revenue from trading activities during the reporting period
□ Applicable√ Not applicable
Top five customers for whom trading revenue accounted for more than 10% of total revenue
□ Applicable√ Not applicable
Top five suppliers for whom trading revenue accounted for more than 10% of total revenue
□ Applicable√ Not applicable
Other information:
None
31 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
3. Expenses
√ Applicable□ Not applicable
Refer to the Analysis of Main Business
4. R&D Spending
(1).Information of R&D spending
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Expensed R&D spending for the period 724148541.67
Capitalized R&D spending for the period
Total R&D spending 724148541.67
Percentage of total R&D spending in revenue (%) 2.99
Proportion of capitalized R&D spending (%)
(2).Information of R&D personnel
√ Applicable□ Not applicable
Number of R&D personnel 440
Percentage of R&D personnel in total headcount (%) 3.34
Educational structure of R&D personnel
Educational level Number of personnel
PhD 13
Master 112
Bachelor 143
Diploma 172
Age structure of R&D personnel
Age group Number of personnel
Below 30 (not inclusive of 30) 216
30-40 (inclusive of 30 and not inclusive of 40) 141
40-50 (inclusive of 40 and not inclusive of 50) 72
50-60 (inclusive of 50 and not inclusive of 60) 11
60 and above 0
(3).Explanation
□ Applicable√ Not applicable
(4).Reasons for significant changes in the structure of R&D personnel and impact on the
Company’s future development
□ Applicable√ Not applicable
5. Cash flows
√ Applicable □ Not applicable
Refer to the Analysis of Main Business
(II). Explanation of Significant Changes in Profit Caused by Business Other than Main Business
□ Applicable√ Not applicable
32 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(III). Analysis of Assets and Liabilities
√ Applicable □ Not applicable
1. Assets and liabilities
Unit: Yuan Currency: RMB
Change
Percent Percenta
Amount as at the from the
Amount as at the age in ge in
end of the previous
Item end of the total total Explanation
previous reporting reportin
Reporting Period assets assets
period g period
(%)(%)
(%)
Increase in the purchase of wealth
Trading Financial
1140377416.70 4.40 312033611.07 1.31 265.47 management products during the
Assets
current period.This is primarily due to the impact
Derivative financial Not of exchange rate fluctuations on the
2061300.000.01
assets applicable company’s purchase of foreign
exchange options.Increase in endorsed unmatured
bank-accepted bills with lower
Notes Receivable 107542558.59 0.41 73697475.30 0.31 45.92
credit ratings at the end of the
current period.Accounts receivable Decrease in high-credit-rating bills
17978363.00 0.07 26723054.99 0.11 -32.72 held on hand at the end of the
financing current period
Increase in export tax rebates during
Other receivables 70477156.58 0.27 49292999.56 0.21 42.98
the current period
Increase in VAT carryforwards and
Other Current Assets 214731083.57 0.83 164629398.67 0.69 30.43 prepaid taxes during the current
period
This increase is due to the transfer
Long-term receivables 233244.15 601043.91 -61.19 of current-period lease deposits into
the “Due within one year” category.Long-term Equity Losses from associates during the
4757925.210.026874939.880.03-30.79
Investments current period.Losses from fair value changes in
Investments in Other
301966810.00 1.17 441294280.00 1.85 -31.57 equity instruments during the
Equity Instruments
current period.Due to the completion and
Construction in
343559937.21 1.33 728524141.54 3.06 -52.84 capitalization of projects during the
progress
current period
Due to the expiration of leases and
Right-of-Use Assets 4007321.13 0.02 8145892.35 0.03 -50.81 normal depreciation during the
current period
Non-current Assets Due Decrease in long-term investments
75575625.480.29182257027.810.77-58.53
Within One Year during the current period
Other Non-current 282005000.00 1.09 Not Increase in long-term investments
33 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Financial Assets applicable during the current period
Resulting from the offset against
Deferred Income Tax Not
21585228.45 0.09 deferred assets during the current
Liabilities applicable
period
This is primarily due to the impact
Derivative Financial Not of exchange rate fluctuations on the
297500.00
Liabilities applicable company’s purchase of foreign
exchange options.Decrease in current income tax
Taxes Payable 194688876.58 0.75 280212685.60 1.18 -30.52
payable
Increase in litigation settlement fees
Other Payables 256349893.68 0.99 448115137.98 1.88 -42.79
during the current period.Due to the maturity of long-term
Non-current Liabilities
281057349.33 1.08 802346793.78 3.37 -64.97 borrowings during the current
Due Within One Year
period
Increase in long-term borrowings
Long-term Borrowings 1918679223.83 7.40 1348094044.83 5.66 42.33
during the current period
Due to the maturity of certain leases
Lease liabilities 1012966.64 0.004 1985140.84 0.01 -48.97
during the current period
Increase in long-term employee
Long-term employee Not
7474640.65 0.03 benefits payable during the current
benefits payable applicable
period
Not Due to the payment of litigation
Provisions 32438161.92 0.14
applicable fees during the current period
Cancellation of shares during the
Capital Reserve 33749867.59 0.13 263154867.05 1.11 -87.17
current period.Not Cancellation of shares during the
Less: Treasury Shares 287771455.80 1.21
applicable current period.Losses from fair value changes in
Other Comprehensive
-159220172.21 -0.61 -55004961.46 -0.23 -189.47 equity instruments during the
Income
current period.Other information:
None
2. Overseas assets
√ Applicable □ Not applicable
(1). Asset size
The Company’s overseas assets reached 3.029 (unit: billion yuan currency: RMB) accounting for
11.69% of the total assets.
(2). Explanation of a high proportion of overseas assets
□ Applicable√ Not applicable
3. Restrictions over major assets as of the end of the Reporting Period
√ Applicable □ Not applicable
Unit: Yuan
Item December 31 2025 Restrictions
34 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Monetary fund 278158282.74 Guarantee Deposits and Other
Monetary fund 2478943.96 Funds in Transit
Notes receivable 99801405.25 Endorsed or discounted not yet matured and cannot be
derecognized
Other non-current assets 80000.00 Other
Total 380518631.95
4. Other information
□ Applicable√ Not applicable
(IV). Analysis of Industrial Business Information
√ Applicable□ Not applicable
In 2025 as the global economic and trade landscape undergoes profound adjustments and China’s
livestock industry optimizes and upgrades its production capacity the amino acid industry enters a new
phase of development characterized by both capacity expansion and trade barriers.According to data from Boyar global feed-grade amino acid production reached 7.763 million
metric tons in 2025 representing a year-on-year increase of 11.1%. China’s feed-grade amino acid
production stood at 5.584 million metric tons up 14.2% year-on-year accounting for over 70% of global
output and establishing the country as the world’s core production hub for amino acids. Affected by
anti-dumping policies in regions such as the EU and the U.S. coupled with domestic capacity expansion
the industry’s profit margins were significantly compressed in the second half of the year. Companies
actively addressed these challenges through a combination of measures including upstream and
downstream cooperation overseas expansion and technological upgrades thereby driving the
restructuring of global supply chains and value recovery.
1. Main raw materials - analysis of change in corn market
Corn is the core raw material for the Company’s main products accounting for over 50% of
production costs during the Reporting Period. Its price fluctuations directly affect the Company’s cost
control. Corn market conditions are influenced by multiple factors including the prices of feed
substitutes (such as soybeans and wheat) demand from the downstream livestock industry and the
international landscape.According to a report by Boyar the government continues to implement policies aimed at
“stabilizing planting area and increasing yield per unit area.” By 2025 corn production is projected to
exceed 300 million metric tons for the first time with a 1.6% increase in yield per unit area providing a
stable supply for the downstream processing industry.In terms of prices the national average price of corn in 2025 was 2263 yuan per ton (down 2.33%
year-on-year). Although this was at a relative low point over the past five years prices rebounded for six
consecutive months after hitting bottom during the year.Boyar predicts that in 2026 domestic corn supply will be ample and imports will trend upward
while growth in downstream consumption will be limited. Consequently prices are unlikely to rise
35 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
significantly; however policy support will limit the downside room. The annual average price is
expected to remain within a reasonable range of 2100–2480 yuan per ton.National Average Corn Price Trend (2021–2025)
(Source: Boyar Intelligence)
By 2025 the Company will leverage its production bases in the three major corn-producing regions
of Tongliao Xinjiang and Jilin. By comprehensively utilizing diverse models such as direct farm
purchases auctions and collection and storage services the Company will solidify its raw material
supply foundation while continuously optimizing costs without compromising quality.
2. Analysis of changes in main products
According to statistics from Boyar global production of feed amino acids (including lysine
threonine methionine and tryptophan) is projected to reach approximately 7.763 million tons in 2025
representing a year-over-year increase of 11.1%. China’s production of feed-grade amino acids is
expected to reach approximately 5.584 million tons marking a year-over-year increase of 14.2%.Global and Chinese Feed Amino Acid Industry Size (2021-2025) (Source: Boyar) Global and Chinese Feed Amino Acid Output Value (2021-2025) (Source: Boyar)
(1) Lysine
In 2025 the lysine industry saw a significant expansion in production capacity with global capacity
increasing by 15.4% year-over-year to 5.528 million tons (on a pure basis). Of this China’s capacity
reached 4.401 million tons up 20.1% year-over-year accounting for 79.6% of the global total.In terms of pricing the annual average price of 98.5% lysine in 2025 was 8.04 yuan/kg a
year-over-year decline of 22.84%; the average price of 70% lysine was 5.06 yuan/kg a year-over-year
decline of 3.98%. In the fourth quarter of 2025 as industry supply increased the entire sector operated
at a loss.On the export front in June 2025 the United States launched an anti-dumping and countervailing
duty investigation against Chinese lysine; in July the European Union issued a final ruling imposing
36 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
high anti-dumping duties ranging from 47.4% to 58.2%. Coupled with the ongoing anti-dumping
investigation in Brazil these factors have hindered domestic lysine exports. Data shows that from
January to December 2025 cumulative exports of lysine esters and salts from China fell by 6.2%
year-on-year. The decline in exports led to high domestic inventory levels and exacerbated the
supply-demand imbalance.
(2) Threonine
In 2025 the growth in threonine industry capacity slowed with global capacity reaching 1.485
million tons a year-over-year increase of 5.5%. Of this domestic capacity stood at 1.385 million tons
up 3.7% year-over-year maintaining a stable global share of 93.3%. Domestic production reached 1.133
million metric tons a year-over-year increase of 9.0% accounting for 93.8% of global output
solidifying the industry’s dominant supply position.In terms of pricing industry data indicates that the average annual price of threonine in 2025 was
9.54 yuan/kg a year-on-year decline of 12.56% with prices falling to 7000–7100 yuan/ton by the end
of December.Regarding exports overseas inventory buildup remained cautious in 2025. Domestic threonine
exports from January to December declined by 3.5% year-on-year and the return of foreign trade
supplies intensified domestic competition.
(3) Valine
Growth in valine production capacity is expected to slow in 2025. According to a report by Boya
and Xun total capacity is projected to reach approximately 368000 tons by the end of 2025 with annual
production estimated at 191000 tons—a slight year-over-year decrease of 0.7%. Exports are projected to
reach approximately 101000 tons while domestic consumption is estimated at 85000 tons.In terms of pricing the average market price of valine in 2025 is projected to be 13.71 yuan/kg a
year-on-year decline of 4.79%. Driven by the combined impact of two rounds of declines in soybean
meal prices from their peak levels and the EU’s preliminary anti-dumping ruling proposing provisional
anti-dumping duties ranging from 32.2% to 53.9% valine prices are expected to fluctuate at high levels
before trending downward throughout the year.
(4) MSG
By 2025 the domestic total production capacity of the MSG industry will reach 3.95 million tons
with output at 3.6535 million tons. The industry exhibits extremely high concentration with the CR3
reaching 84% indicating a trend toward consolidation and efficiency. Domestic consumption is
projected to reach 2.498 million tons in 2025 with a five-year average growth rate of 7.68%.In terms of pricing MSG prices have followed a pattern of rising first and then falling over the past
five years. The average price in 2025 is projected to be 6906.3 yuan per ton representing a year-on-year
decrease of approximately 10%.
37 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Yuan/ton Yuan/ton
National Average Price Trend for 40-mesh MSG 2021–2025 (Source: SCI) Monthly Average National Price Trend for 40-mesh MSG in 2025 (Source: SCI)
In terms of exports the MSG export market has shown an overall upward trend. In 2025 export
volume is projected to reach 1.0243 million tons with a five-year average growth rate of 10.15%.
38 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Analysis of Business Information in the Food Industry
1. Composition of Main Business during the Reporting Period
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Main business performance during the Reporting Period by product
Change in Change in
Gross Change in
operating operating
profit gross profit
Product Operating revenue Operating costs revenue costs from
margin margin from
from prior prior year
(%) prior year (%)
year (%) (%)
Flavor enhancer 7004877067.56 6196218373.21 11.54 -3.44 3.89 -6.24
Feed amino acid 10713816469.24 8497621775.41 20.69 -6.21 -0.90 -4.25
Pharmaceutical
740403825.14495213216.6633.1255.4539.907.44
amino acid
Major raw
material 4032896391.69 3126149783.83 22.48 7.85 -13.19 18.79
byproduct
Others 1518193405.73 1153862221.97 24.00 -23.48 -18.41 -4.72
Subtotal 24010187159.36 19469065371.08 18.91 -3.49 -2.21 -1.06
Main business performance during the Reporting Period by sales model
Change in Change in
Gross Change in
operating operating
profit gross profit
Sales model Operating revenue Operating costs revenue costs from
margin margin from
from prior prior year
(%) prior year (%)
year (%) (%)
Direct sales 13998171092.37 11420740683.44 18.41 1.15 0.41 0.60
Sales via agency 10012016066.99 8048324687.64 19.61 -9.31 -5.70 -3.08
Subtotal 24010187159.36 19469065371.08 18.91 -3.49 -2.21 -1.06
Main business performance during the Reporting Period by region
Change in Change in
Gross Change in
operating operating
profit gross profit
Region Operating revenue Operating costs revenue costs from
margin margin from
from prior prior year
(%) prior year (%)
year (%) (%)
Domestic 16875325367.19 13956612103.42 17.30 2.93 1.51 1.16
Overseas 7134861792.17 5512453267.66 22.74 -15.89 -10.52 -4.64
Subtotal 24010187159.36 19469065371.08 18.91 -3.49 -2.21 -1.06
Total 24010187159.36 19469065371.08 18.91 -3.49 -2.21 -1.06
2. Profit from Online Sales Channels during the Reporting Period
□ Applicable √ Not applicable
39 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(V). Analysis of Investment
Overall analysis of external equity investment
√Applicable □ Not applicable
Proportion of shareholding in Book balance
Investee
investee (%) Opening balance Opening balance Opening balance Opening balance
Bank of Tibet 4.2414 157000000.00 157000000.00
AIM Vaccine Corporation 4.1286 284294280.00 -139327470.00 144966810.00
Tongliao Desheng Bio-tech Co. Ltd. 49 6874939.88 -2117014.67 4757925.21
Total 448169219.88 -141444484.67 306724735.21
1. Significant equity investment
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Does
the
Su
target Conso Financia
bje
primar lidated l Invest Status Expec
Invest Owner Sour Partne ct
Name of Main ily in stateme ment as of the ted Impact on Current
ment Investment ship ce of rs (if to Disclosure Date (if Disclosure
Investee Busines engag financ nt line term balance Retur Period Profit or
metho amount percen fund applic Lit any) Index (if any)
Company s e in ial items (if (if sheet ns (if Loss
d tage s able) iga
invest statem applicab any) date any)
tio
ment ents le)
n
activit
ies
Food and Food The Company For specific
Self-
Pharmaceutica amino Acqui Complet disclosed an details please
No 764448539.03 100% Yes fina 861612552.88 No announcement on refer to the
l Amino Acid acids sition ed
nced November 23 Shanghai
Businesses of pharmac 2024 regarding the Stock
40 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Kyowa Hakko eutical cross-border Exchange
amino acquisition of website at
business and assets www.sse.com.acids and the signing of cn (Interimetc. the “Share and AnnouncemenAsset Purchase t Numbers:Agreement” and 2024-061
disclosed related 2025-045
progress 2025-055)
announcements on
July 2 2025 and
October 23 2025
respectively
Total / / / 764448539.03 / / / / / / / 861612552.88 / / /
2. Significant non-equity investment
□ Applicable√ Not applicable
3. Financial assets measured at fair value
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Gains or losses on Impairment
Accumulated fair Purchase amount Sales/repurchase
changes in fair accrued during
Asset type Opening amount value changes for the Reporting amount for the Other changes Closing amount
value for the the Reporting
included in equity Period Reporting Period
Reporting Period Period
Trust products 6956700.00 652650000.00 528037276.25 131569423.75
Private equity 30868765.25 -1285030.45 29583734.80
Derivatives 6856503.34 4795203.34 2061300.00
Others 749182180.81 -83416875.23 -204033190.00 -171.96 16483850583.19 15530113030.83 -8744863.95 1610758165.95
Total 780050946.06 -70888702.34 -204033190.00 -171.96 17136500583.19 16092529245.22 -8744863.95 1744388889.70
41 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Securities investment
□ Applicable √ Not applicable
Explanation of securities investment
□ Applicable √ Not applicable
Private equity investment
□ Applicable √ Not applicable
Derivatives investment
□ Applicable √ Not applicable
4. Progress of the restructuring and integration of material assets during the Reporting Period
□ Applicable√ Not applicable
(VI). Sale of Material Assets and Equity
□ Applicable √ Not applicable
(VII). Analysis of Major Holding and Joint Stock Companies
√ Applicable□ Not applicable
Major subsidiaries and equity-invested companies affecting the Company’s net profit by 10% or more
√ Applicable□ Not applicable
Unit: 100 million yuan Currency: RMB
Company Company Registered
Main Business Total Assets Net Assets Revenue Operating Profit Net Profit
Name Type Capital
Tongliao Production and sale of MSG and
Subsidiary 18.00 76.93 56.59 99.55 9.32 7.86
Meihua amino acids
Xinjiang Production and sale of MSG and
Subsidiary 25.00 61.55 51.72 53.26 10.16 8.74
Meihua amino acids
Production and sale of MSG and
Jilin Meihua Subsidiary 20.00 73.66 36.78 66.26 4.98 4.16
amino acids
Acquisitions and Disposals of Subsidiaries During the Reporting Period
42 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
√ Applicable□ Not applicable
Methods of acquiring and disposing of subsidiaries
Company Name Impact on Overall Operations and Performance
during the reporting period
PLUMINO PRECISION FERMENTATION HOLDINGS PTE. LTD. (SPV) Investment or establishment The Company has expanded its product portfolio
Plumino Precision Fermentation US Holdings Inc. (PUS) Investment or establishment extending from traditional feed-grade and food-grade amino
Plumino USA Inc. (PUSA) Investment or establishment acids to high-end niche markets such as
Shanghai Plimeno Amino Acids Co. Ltd. (SP) Business combination not under common control pharmaceutical-grade amino acids amino acids for cell
Plumino Precision Fermentation (Thailand) Co. Ltd (TP) Business combination not under common control culture media and cosmetic-grade amino acids. The
Plumino Precision Fermentation USA Inc. ( UP) Business combination not under common control cross-border asset acquisition completed during the current
Plumino Precision Fermentation Japan Co. Ltd.(PJP) Business combination not under common control period resulted in non-recurring gains that increased net
Plumino Biotechnology (Singapore) Pte. Ltd. ( PSG) Business combination not under common control profit by RMB 831 million and operating income by RMB
Plumino Precision Fermentation Europe GmbH (PEU) Business combination not under common control 30 million.Primeno Biotechnology (Guangdong) Co. Ltd. (PGD) Business combination not under common control
Other Explanations:
□ Applicable √ Not applicable
(VIII). Structured Entities Controlled by the Company
□ Applicable √ Not applicable
43 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
VI. The Company’s Discussion and Analysis of its Future Development
(I). Industrial Landscape and Trend
√ Applicable□ Not applicable
During the reporting period against a backdrop of sustained growth in market demand leading
companies in the industry continued to consolidate their dominant positions through capacity expansion
and technological iteration. The strong profitability seen in previous years also attracted some upstream
companies to cross over into the industry resulting in a continuous increase in total industry supply. At
the same time changes in the international trade environment led some regions to implement measures
such as anti-dumping duties providing a recovery opportunity for local production capacity that was on
the verge of shutting down; as a result overseas companies saw a rebound in capacity utilization rates
and an increase in supply.The simultaneous release of new domestic production capacity and the recovery of overseas supply
have created a compounding effect. In the short term the industry is experiencing a temporary
imbalance in which supply growth outpaces demand growth leading to downward pressure on product
prices and intensified market competition. As a result the industry landscape has entered a new phase of
optimization and restructuring.
1. Demand in the Industry Continues to Grow
Currently demand in the global amino acid industry continues to grow and the market is steadily
expanding:
(1) Natural Growth in the Industry
As a key feed additive the natural growth in demand for amino acids is driven not only by
increased feed production but also by the following factors:
First improvements in the aquaculture structure. As large-scale aquaculture expands globally
China’s aquaculture model is transitioning from traditional small-scale farming to standardized
industrialized practices. Industrialized aquaculture places higher demands on feed nutrient
standardization driving a corresponding increase in the rigid demand for amino acids.Second this is driven by policies promoting the reduced use of soybean meal. Under the national
food security strategy policies aimed at reducing soybean meal usage have been further strengthened.Since soybean meal substitutes have relatively low amino acid content and digestibility additional
amino acids must be added to ensure nutritional balance in feed thereby driving growth in demand for
amino acids.Third the application of amino acids in the feed industry has expanded. With the upgrading of
industrialized farming and the diversification of livestock and aquaculture species the use of amino
acids has extended from traditional livestock poultry and aquaculture to niche sectors such as specialty
farming and pet food. At the same time specialized amino acid formulations tailored to different growth
stages and species are gradually being adopted further driving demand for amino acids in the feed
industry.
(2)Expansion into Multiple Applications Increasing Demand Across Various Sectors
44 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The growth in demand for amino acids is also driven by the diversification of application scenarios
particularly their increasing penetration into the food industry and various emerging high-value-added
sectors which has further expanded the industry’s growth potential.In the food industry as consumers become increasingly health-conscious amino acids are being
used more widely in the development of low-calorie novel sweeteners functional foods and sports
nutrition supplements to meet the public’s personalized nutritional needs.In emerging fields amino acid-based pesticides have become a research focus due to their
environmental friendliness and high efficacy while amino acid-based skincare products have emerged
as core ingredients in high-end products thanks to their gentle skin-friendly properties. At the same time
their application potential in the field of biomaterials continues to be realized creating a diverse range of
demand.
(3) Lower costs have improved the cost-effectiveness of additives driving an increase in their
usage
Advances in technologies such as synthetic biology artificial intelligence and enzymatic catalysis
have boosted production efficiency reduced production costs and improved the cost-effectiveness of
products. This in turn has led to increased use of amino acids across various sectors creating a virtuous
cycle.
2. Industry Barriers Continue to Rise with Leading Companies Gaining a Clear Edge
While the scale of industry supply continues to expand driven by demand barriers to entry are
steadily rising due to multiple factors including intensifying competition accelerating technological
advancements and a deteriorating international trade environment. This is reflected in the following
areas:
(1) R&D and Technological Barriers
Amino acid production places extremely high demands on core technologies and microbial strain
performance requiring companies to continuously increase their R&D investments. Leading companies
have maintained high levels of R&D investment over the long term accumulating a wealth of technical
expertise and establishing a distinct competitive edge in core areas such as microbial strain cultivation
and process optimization; at the same time through continuous technological iteration they have
consistently optimized production processes and reduced energy consumption and material loss
transforming their technological advantages into significant cost advantages and establishing a virtuous
cycle of “R&D investment → technological iteration → cost optimization.” Leveraging these dual
advantages of technology and cost leading companies have secured a dominant position in the high-end
market through core patents and relevant international certifications driving the industry’s continuous
upgrading.
(2) Capital Barriers
The amino acid industry is a typically capital-intensive sector with significant capital investment
required for expanding supply capacity and upgrading production technology. Leveraging their strong
financial resources and stable cash flow leading companies are well-positioned to manage various
45 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
financial pressures continuously optimize production capacity and upgrade technology further solidify
their market position and set a benchmark for high-quality development in the industry.
(3) Scale and Multi-Product Barriers
Amino acid production exhibits significant economies of scale. Leading companies effectively
reduce unit production costs and improve capacity utilization through large-scale production while
achieving sales synergies to further enhance their market competitiveness. The synergy between a
multi-product portfolio and economies of scale creates high barriers to entry in the industry: producing
multiple products requires mastery of various core technologies and leading companies backed by
sustained R&D investment are the first to overcome technical bottlenecks; their mature and
well-established management systems are also difficult to replicate. Furthermore a multi-product matrix
enables sales synergy precisely meeting the diverse needs of downstream customers and efficiently
sharing customer resources thereby further consolidating the leading companies’ core positions and
driving the continuous increase in industry concentration.
(4) Trade Barriers
Anti-dumping investigations targeting Chinese amino acid products in overseas markets have
become increasingly common. Coupled with rising demands for product quality and safety certifications
in these markets this has further raised the barriers to entry for the industry. Leading companies backed
by robust compliance management systems and ample financial resources are well-positioned to
effectively manage various trade risks maintain a solid foothold in overseas markets and steadily
expand their global market share thereby emerging as the core driving force behind the global
expansion of China’s amino acid products.
3. Accelerating Overseas Expansion
Faced with multiple industry challenges—including rising industry barriers tightening
anti-dumping policies overseas and the recovery of overseas production capacity—establishing overseas
manufacturing facilities has become an inevitable choice for domestic amino acid companies seeking to
mitigate risks and achieve sustainable development. Leading companies leveraging their comprehensive
advantages in capital technology scale and compliance have taken the lead in expanding overseas:
(1) Avoid anti-dumping barriers in overseas markets effectively safeguard market share abroad
and better meet the growing demand in those markets;
(2) By precisely targeting core markets in Europe the Americas Asia and Africa this strategic
layout not only enables immediate on-the-ground responsiveness but also allows the Company to
swiftly identify and effectively meet customers’ diverse needs. Furthermore through localized value
creation it has established a high-value-added sales system that provides robust support for the
Company to continuously enhance its global pricing power strengthen its core competitiveness and
consolidate its global market position;
(3) Optimize the global supply chain layout to achieve synergy between domestic and overseas
supply sources thereby effectively hedging against the risk of volatility in any single market;
46 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(4) Break through various industry barriers strengthen our global core competitiveness and
continue to solidify our position as an industry leader.(II). The Company’s Development Strategy
√ Applicable□ Not applicable
The Company’s development strategy is as follows:
1. focusing on the high-quality growth of the main business striving to become a leading enterprise
in synthetic biology
2. driven by both technology and management strengthening the Company’s defense line through
the concerted efforts of its R&D supply production sales and all functional departments;
3. Persisting in creation and sharing sticking to a customer-centered approach and upholding the
principle of integrity thus building a healthy and sustainable corporate development ecosystem.(III). Business Plan
√ Applicable□ Not applicable
1. Business Objectives
In 2026 the Company will continue to focus on its core business with the strategic goal of
becoming a leading enterprise in the field of synthetic biology. We will implement our
internationalization strategy enhance the automation and intelligence of our production processes
promote refined operations and management complete new construction projects as scheduled and
continuously improve the Company’s competitive strength.
2. Main Business Initiatives
(1) Deploy an AI-powered bio-intelligence information system to establish a new paradigm for
digital R&D
While continuing to strengthen the development of its synthetic biology platform the Company has
proactively initiated the independent research development and deployment of an intelligent
bioinformatics system based on a multi-AI agent architecture and integrated with various large language
models. As a core initiative in the Company’s efforts to drive the digital transformation of its R&D
system this system aims to build a highly intelligent data-driven R&D support platform to
comprehensively enhance R&D innovation efficiency and the ability to build technological barriers.The system development follows a strategic approach characterized by “phased implementationmodular deployment and scalable evolution.” The system is currently in use within the R&D
department. Phase One focuses primarily on the field of bioinformatics providing precise and efficient
intelligent decision-making support for systematic intellectual property planning and the development of
high-performance microbial strains. By integrating the Company’s long-accumulated genomic data
patent literature and experimental records the system has constructed a specialized knowledge graph.This enables core functions such as intelligent patent analysis strain design optimization and
experimental protocol recommendations significantly enhancing the scientific rigor and foresight of
R&D work.
47 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Looking ahead the system will gradually expand its functional scope in accordance with the
established plan: In the second phase it will extend to downstream R&D processes such as fermentation
extraction and purification and establish process optimization models; in the third phase it will
integrate data across the entire “R&D–pilot–production” chain enabling production big data to directly
inform R&D efforts and creating a data-driven closed-loop intelligent R&D model.The successful deployment of this system marks a significant step forward for the Company in the
field of deep integration between artificial intelligence and biomanufacturing. By deeply embedding
cutting-edge AI technologies into its core R&D processes the Company is not only able to accelerate
technology iteration cycles and optimize the allocation of R&D resources but also stands to establish a
new competitive advantage in data-driven intelligent decision-making providing a powerful driving
force for the Company’s long-term technological leadership and sustainable development in the global
biomanufacturing sector.
(2) Deepening International Expansion Building a New Global Operational Framework
Advancing the globalization strategy through a “greenfield layout + global response” approach: 1)
Based on its long-term development strategy the Company is focusing on high-potential regions such as
Southeast Asia Africa Central Asia and the Americas and completed a global scan of overseas
greenfield investment opportunities in 2025. In 2026 the Company plans to center its efforts on 1–2 key
target countries steadily advancing preliminary work such as feasibility studies for overseas plant
construction site selection planning and regulatory registration to accelerate project
implementation and refine its global footprint; 2) Positioning Primeno as a global technological
bridgehead and precision fermentation innovation platform the Company will enhance its
competitiveness and profitability complete the feasibility study for the expansion of its North American
plant and expand overseas production capacity; 3) Strengthen international R&D and project
collaboration promote technology introduction and joint innovation and expand global industry
influence.
(3) Optimize the layout of production capacity and accelerate the implementation and
completion of key projects
Coordinate and optimize the domestic production capacity layout and advance the implementation
of key projects: At the Tongliao facility focus on implementing technical upgrades to production lines
and bringing new projects online ensuring the smooth completion of projects such as the starch
production line upgrade and the 300000-ton threonine project; at the Xinjiang facility improve the
efficiency of existing production lines advance the commissioning of the 90000-ton valine project in
Xinjiang and initiate the technical upgrade of the lysine production line as well as the preparatory work
for new projects such as arginine thereby diversifying the product portfolio.
(4) Strengthen organizational talent and cultural development to solidify the foundation for
core growth
In 2026 the Company will continue to build a talent development and incentive system with a
practical focus. By utilizing a problem bank and job rotation training we will enhance employees’
48 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
practical capabilities and ensure that talent development aligns with business needs. We will optimize
the bonus pool and performance evaluation mechanisms to energize both the organization and its
employees fostering a learning-oriented and proactive team. At the same time we will deepen our
corporate culture initiatives to improve organizational synergy advance the implementation of process
and system updates to clarify responsibilities standardize procedures and reduce internal friction; we
will continuously improve the workshop work environment strengthen safety measures and enhance
employee sense of belonging; we will advocate for management to engage at the grassroots level with a
pragmatic and efficient approach encouraging managerial and technical staff to go to the front lines to
resolve issues and eliminate formalism.In 2026 the Company may face risks such as changes in the international environment and
intensified market competition. The Company will improve its risk prevention and control mechanisms
enhance market analysis strengthen project management increase investment in research and
development refine talent incentive programs and improve organizational adaptability to ensure the
successful implementation of its business plans.In 2026 industry consolidation will continue to deepen presenting both challenges and
opportunities. The Company will steadfastly implement the aforementioned business plan strengthen its
operational capabilities foster team cohesion and continuously solidify its core competitiveness while
addressing these challenges thereby laying a solid foundation for the Company’s long-term steady
development and sustained growth.(IV). Potential Risks
√ Applicable□ Not applicable
1. Business Risks in Overseas Markets
Over the past three years the proportion of the Company’s revenue derived from overseas core
business operations has remained relatively stable. Overseas sales and production must strictly comply
with the laws regulations licensing requirements and product standards of the respective countries or
regions. Should there be significant changes in the international political and economic landscape or in
other countries’ trade policies toward China this could lead to obstacles in exporting products and
increased operating costs which in turn could impact overall performance. Specifically this primarily
involves three aspects:
First exchange rate fluctuation risk: Some of the Company’s overseas transactions are denominated
in U.S. dollars and the construction of overseas production facilities procurement of raw materials and
capacity exports all involve settlements in multiple currencies. Although the Company has established a
foreign exchange risk monitoring mechanism and employs financial derivatives for hedging sharp
exchange rate fluctuations or improper hedging strategies could still have a certain impact on the
Company’s financial condition;
Second risks associated with anti-dumping and trade remedy investigations: Overseas markets such
as the European Union the United States and Brazil have already initiated anti-dumping investigations
into the Company’s relevant products. If the final duty rates are lower than expected this will directly
49 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
undermine the products’ competitiveness in overseas markets leading to a decline in export sales and
intensifying competitive pressure in the domestic market;
Third new risks associated with overseas production: The Company currently operates overseas
production facilities. If it continues to establish new overseas production facilities this will further
increase operational risks overseas including geopolitical risks construction and operational cost risks
and risks related to supply chain and production capacity alignment.Response measures: The Company will continue to monitor international developments and trade
policies optimize foreign exchange risk management and actively address anti-dumping investigations;
prior to establishing new overseas production facilities we will thoroughly assess the compliance of
potential sites and their market potential strictly control construction and operational costs and establish
stable local supply chains; we will strengthen cross-regional operational management and talent
development improve technical confidentiality mechanisms mitigate various compliance and
operational risks and expand our overseas production and market footprint in a compliant manner.
2. Risks Associated with Changes in Industry Regulation and Industrial Policy
The Company is primarily engaged in the research development production and sale of amino
acid products. Its business operations are subject to regulation by various domestic and international
authorities and must comply with stringent domestic and international regulations standards and quality
and technical requirements. As the industry evolves the regulatory environment both domestically and
internationally may undergo further adjustments with policies and market access requirements
potentially becoming more stringent. This could result in restrictions on the Company’s production and
operations increased compliance costs limitations on the market application of certain products and an
impact on overall profitability.Response measures: The Company will closely monitor developments in relevant policies and
regulations promptly assess potential impacts adjust its business strategies and proactively align with
regulatory requirements.
3. Intensifying Industry Competition and Project Profitability Risks
In 2026 the Company continues to plan and advance major investment and construction projects
while several other companies in the industry also have plans to expand production capacity. If market
demand fails to keep pace with this new capacity or if outdated capacity is not effectively phased out it
could lead to intensified industry competition and falling product prices posing a risk that the return on
investment may fall short of expectations.Response measures: The Company will manage project timelines effectively strengthen market
demand analysis optimize production capacity allocation and improve project operational efficiency.
4. Risks of Environmental Protection and Safe Production
The Company’s main production facility is designated as a key polluting entity; its production
processes generate wastewater exhaust gases and solid waste. Should an environmental pollution
incident occur due to management errors equipment malfunctions or force majeure the Company
would face administrative penalties and production suspensions for rectification which would disrupt
50 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
normal production and business operations. Furthermore the Company’s production processes are
complex and involve the use and storage of hazardous chemicals and special equipment. If safety
management systems are not properly implemented operations are not conducted in accordance with
established procedures or equipment is not properly maintained this could lead to safety incidents
resulting in personal injury property damage and production interruptions thereby affecting operational
stability.Response measures: The Company will continue to strengthen environmental protection and safety
management improve prevention and control mechanisms conduct regular equipment maintenance and
employee training increase environmental protection investments as required and prevent all types of
safety and environmental incidents.
5. Technological Risks
These primarily encompass two areas: first risk of core technology leakage and loss of key
technical personnel; second risk of intellectual property protection. Although the Company holds
patents covering the entire industrial chain and has established an intellectual property management
system it still faces the risk of its intellectual property being infringed upon or becoming the subject of
litigation; such disputes could restrict product manufacturing and operations and hinder business
development.Response measures: The Company will further improve its technical confidentiality and talent
incentive mechanisms strengthen efforts to retain key technical personnel continuously optimize
intellectual property management and proactively prevent intellectual property disputes.
6. Risks Associated with Cross-Border M&A
The Company completed the closing of the overseas target asset acquisition in July 2025 but
subsequent operations still face risks. First there are risks associated with acquisition and integration;
second there are force majeure risks as significant adverse changes in the laws and regulations natural
environment or socioeconomic conditions of the country or region where the overseas assets are located
could disrupt local business operations and the integration process; third there are risks associated with
new product development and marketing.Response measures: The Company will systematically advance the integration of its domestic and
international operations technologies supply chains and teams; continuously assess risks in overseas
markets; strengthen management of the R&D process and market analysis; and strictly control risks
associated with the development and promotion of new products.
7. Risks of Changes in Tax Incentive Policies
Some of the Company’s subsidiaries currently benefit from corporate income tax incentives. If
these existing tax incentives are modified or not extended the Company’s tax burden will increase
directly which could have an adverse effect on its operating performance.Response measures: Closely monitor changes in tax policies optimize tax planning enhance
profitability and mitigate the impact of changes in tax incentives.
51 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(V). Miscellaneous
□ Applicable √ Not applicable
VII.Explanation of circumstances where the Company does not disclose information according to
the standards due to special reasons such as the standards not applicable to the Company or
the information classified as state secret or trade secret and the reasons
□ Applicable √ Not applicable
Section 4 Corporate Governance Environment and Society
I. Information of Corporate Governance
√ Applicable□ Not applicable
During the reporting period in order to improve and optimize the Company’s governance structure
and in accordance with the relevant provisions of the Company Law of the People’s Republic of China
and other applicable regulations while taking into account the Company’s actual circumstances the
Company abolished the Board of Supervisors. The powers and responsibilities of the Board of
Supervisors were assumed by the Audit Committee of the Board of Directors. The Company also revised
the entire text of its Articles of Association. In accordance with the requirements of laws regulations
and normative documents as well as the revised Articles of Association the Company simultaneously
revised or established relevant systems for external disclosure and disclosed them on the Shanghai Stock
Exchange website (www.sse.com.cn).In 2025 the Company’s Audit Department set compliance-oriented operations as its core
management objective adhered to the principle of risk-oriented auditing and utilized end-to-end internal
control management as a key lever to comprehensively strengthen the Company’s operational risk
defenses and solidify the foundation of internal control management. During the reporting period the
department focused on the Company’s core operational chains and deepened internal control audits in
key business areas. It completed specialized audits in seven major business sectors—including
consignment management materials procurement product sales asset management operational control
engineering projects and human resources—to comprehensively identify weaknesses in internal controls
and uncover potential risks. Regarding the issues identified during the audits the Company implemented
full-process tracking and supervision enforced accountability for rectification and ensured the
closed-loop implementation of corrective measures to achieve tangible results. These efforts have
promoted standardized business management refined risk control and established a sustainable internal
control system thereby providing a solid foundation for the Company’s high-quality and steady
development.In terms of entrusted storage management the Company exercises strict control over risks
throughout the entire process of entrusted procurement and storage. It focuses on the supplier admission
and contract signing stages conducting qualification reviews in advance and comprehensively
evaluating core risk indicators of entrusted storage suppliers including hardware facilities financial
52 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
strength storage capacity and financing capability. By optimizing the deposit and fee payment models
and standardizing entrusted storage contract templates it effectively transfers entrusted storage risks. For
the corn entrusted storage operations in Tongliao Xinjiang and Jilin the Company has particularly
intensified routine inspections and supervision shifting the control model from post-event handling to
real-time process prevention and control thereby effectively reducing the risks of corn entrusted storage.In managing the procurement and payment cycle we conduct compliance audits across the entire
process—from purchase requests supplier onboarding and contract signing to order placement goods
receipt warehousing invoicing and payment settlement—with a focus on key risk areas. We closely
monitor critical risk points identify management weaknesses with precision and implement weekly
tracking and closed-loop corrective actions. Through end-to-end compliance controls we ensure that all
procurement transactions and accounts payable are fully documented without omission thereby
safeguarding operational compliance and the security of funds.In terms of asset management by 2025 we will comprehensively review and refine our
management systems for inventory fixed assets and funds. We will conduct quarterly asset inventories
standardize the approval process for asset procurement as well as the control of asset receipt issuance
and storage thereby significantly improving the level of basic asset management. For fund management
we will strictly enforce the separation of duties and authorization-based approval processes strengthen
daily oversight of bank accounts financial instruments and bank-enterprise reconciliations and
precisely manage cash flows to mitigate liquidity risks.In terms of operations management in accordance with the “Operations DepartmentStandardization Manual” and the requirements of the annual Directive No. 1 we conducted on-site
inspections and evaluations focused on warehouse management production-supply-sales coordination
and cost management with a particular emphasis on end-to-end control of the entire process for raw
grain unloading warehousing and outbound shipping. Regarding production-supply-sales coordination
we refined standards and prioritized order fulfillment and handling of abnormal inventory situations
thereby enhancing operational efficiency.In terms of compliance management in 2025 in line with the Company’s sustainable development
plan anti-bribery compliance audits were conducted across the Group and its subsidiaries. These audits
focused on verifying the signing of compliance commitments by employees suppliers and customers
and promptly addressing any issues in the implementation of relevant policies. The Human Resources
Department conducted due diligence on new hires and transferred employees and had them sign integrity
agreements effectively mitigating business ethics risks. As a result the compliance awareness and
management standards of the entire workforce have continued to improve.During the reporting period the Audit Department organized and collaborated with RSM China
CPA LLP to complete the 2025 internal control audit and evaluation during which no material internal
control deficiencies were identified. Regarding the deficiencies identified in the 2025 internal control
audit the Audit Department worked with the relevant business departments to formulate corrective
measures all of which have been fully implemented and closed out.
53 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Are there any significant differences between the Company’s corporate governance and the laws
administrative regulations and the CRSC’s rules on the governance of listed companies If yes state the
reasons.□ Applicable √ Not applicable
II. The Company’s controlling shareholders and actual controller’s specific measures that ensure
the Company’s independence in assets personnel finance institution and business as well as
solutions work progress and subsequent work plans that affect the Company’s independence
□ Applicable √ Not applicable
Circumstances where the controlling shareholder the actual controller or other entities under their
control are engaged in the same or similar business as the Company or the impact of the competitive
business or a substantial change in the competitive business on the Company the countermeasures taken
the progress of the countermeasures and subsequent plans for solving the issue
□ Applicable√ Not applicable
54 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
III. Information of Directors and Officers
(I). Changes in the shares held by and remuneration of the directors and officers currently in office and those who resigned during the Reporting Period
√Applicable □Not applicable
Unit: share
Total
before-tax
Any
remuneration
Number of remuneration
Number of received
shares held received
Start date of End date of shares held Change in the Reasons for the from the
Name Position Gender Age as at the from a
term of office term of office as at the end shares change Company
beginning of related party
of the year during the
the year of the
Reporting
Company
Period (‘0000
yuan)
Wang
Chairman F 54 2017/1/16 2028/12/28 72452774 72452774 572 No
Aijun
Director and General
He Jun M 52 2017/1/16 2028/12/28 24584458 24584458 628 No
Manager
Director and Deputy
2011/1/212025/12/29
General Manager
Liang
Director and Senior M 62 54474218 54474218 358 No
Yubo
Deputy General 2025/12/29 2028/12/28
Manager
Liu
Independent Director M 59 2023/1/6 2028/12/28 0 0 20 No
Xinghua
Lu
Independent Director M 46 2023/1/6 2028/12/28 0 0 20 No
Chuang
Zhou Independent Director M 41 2025/12/29 2028/12/28 0 0 0 No
55 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Zhen
Employee
Liu
Representative F 51 2025/12/29 2028/12/28 0 0 37 No
Xiaojing
Director
Wang Senior Deputy
F 50 2025/12/29 2028/12/28 378900 378900 17 No
Ailing General Manager
Wang
CFO F 45 2019/9/6 2028/12/28 117300 117300 140 No
Lihong
Liu
Board Secretary F 42 2017/1/16 2028/12/28 187400 187400 53 No
Xianfang
Deputy General
Wang
Manager M 51 2017/1/16 2025/12/29 673000 673000 209 No
You
(resignation)
Total / / / / / 152868050 152868050 0 / 2054 /
Note 1: The Company completed the election of new directors and the appointment of senior management on December 29 2025. Among them Mr. Zhou Zhen an independent director
began receiving director’s fees effective January 2026; Ms. Wang Ailing Senior Vice President received compensation for the month of December 2025.Note 2: Due to the expiration of the Board of Directors’ term Mr. Wang You will no longer serve as the Company’s Deputy General Manager; however he will continue to hold other
positions within the Company following his departure.Note 3: The significant year-over-year increase in compensation for certain officers is primarily due to the fact that some quarterly performance targets from the previous period and
performance targets committed to at the beginning of the year were not met; consequently certain performance-based payments (including incentive bonuses) were not accrued or paid out. For
this reporting period performance targets were met and such payments were accrued and paid out in accordance with established policies.Name Main working experience
He was born in 1972 is a Chinese national of Han ethnicity. He studied accounting and management at the Beijing International Business College and the Executive Education
Wang Aijun
Program at Peking University. He previously served as a director and general manager of the former Meihua Group and has been the Company’s chairman since 2017.He was born in 1974 is a Chinese national of Han ethnicity. He previously worked at the Shengfang Construction Branch. He has served as a director and deputy general manager
He Jun
of the Company and has been the Company’s director and general manager since 2017.He was born in 1964 is a Chinese national of Han ethnicity. He previously served as a director and deputy general manager of the Company and currently serves as a director and
Liang Yubo
senior deputy general manager.
56 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
He was born in 1967 and is a Chinese national of the Han ethnic. He holds a PhD in Management. He has been a distinguished professor at Tongji University since October 2020.Mr. Liu Xinghua has been an independent director of Lihuayi Weiyuan Chemical Co. Ltd. (short stock name: Weiyuan Co.; stock code: 600955) since December 2021 an
Liu Xinghua independent director of Shengtai Smart Manufacturing Group Co. Ltd. (short stock name: Shengtai Group; stock code: 605138) since July 2024 and an independent director of
the Company since January 2023. Mr. Liu Xinghua has no association with the Company’s actual controller and does not hold any shares in the Company. He has obtained the
qualification certificate for independent directors issued by the Shanghai Stock Exchange.He was born in 1980 and is a Chinese national of the Han ethnic. He holds a PhD in Management and has been a professor at the School of Accountancy at the Central University
of Finance and Economics since November 2015. Mr. Lu Chuang has been an independent director of China Isotope & Radiation Corporation (short stock name: CIRC; stock
Lu Chuang code: 01763.HK) since February 2021 an independent director of Qi-Anxin Technology Group Co. Ltd. (short stock name: Qi-Anxin; stock code: 688561) since May 2025 and
an independent director of the Company since January 2023. Mr. Lu Chuang has no association with the Company’s actual controller and does not hold any shares in the
Company. He has obtained the qualification certificate for independent directors issued by the Shanghai Stock Exchange.He was born in 1985 is a Chinese national of Han ethnicity. He holds a Ph.D. in Economics. Since December 2022 he has served as an associate professor and doctoral advisor at
the PBC School of Finance Tsinghua University and concurrently holds the positions of Academic Director of the doctoral program Deputy Director of the Center for Monetary
Policy and Financial Stability and Deputy Director of the Center for Industrial Finance at the PBC School of Finance Tsinghua University. Mr. Zhou Zhen’s primary research
focuses on the theory of information economics and its applications in corporate finance and macroeconomics. His research findings have been published in top-tier global
Zhou Zhen
academic journals in the field of economics including the *American Economic Review* the *Journal of Political Economy* the *Review of Financial Studies* and the
*Tsinghua Financial Review* among other domestic and international academic journals. Since December 2025 he has served as an independent director of the Company. Mr.Zhou Zhen has no affiliation with the Company’s actual controller and does not hold any shares in the Company. He has completed the relevant training courses offered by the
Shanghai Stock Exchange.She was born in 1975 is a Chinese national of Han ethnicity. She joined the Company in 2001. Her previous positions include director of the finance department at Tongliao
Liu Xiaojing Meihua finance manager at Tongliao Meihua and employee supervisor. She currently serves as an employee representative director of the Company and project supervisor of the
Asset Management Office of the Finance Department.She was born in 1976 is a Chinese national of Han ethnicity. Since 2002 she has held various positions in the Company including director of the capital department deputy
Wang Ailing director of the finance department and director of the finance department. She currently serves as the Senior Deputy General Manager of the Company and head of the Finance
Department.She was born in 1981 is a Chinese national of Han ethnicity and is a certified public accountant. Since 2005 she has held various positions in the finance department of Meihua
Wang Lihong Group including accountant accounting supervisor accounting manager and general ledger accountant. She has extensive experience and expertise in financial accounting
financial analysis and financial management. She has been the CFO of the Company since 2019.She was born in 1984 is a Chinese national of Han ethnicity and holds a bachelor’s degree. She joined the Company in July 2006. Her previous positions include information
Liu Xianfang
disclosure specialist information disclosure supervisor and securities affairs representative in the securities department of the Company. She has been the board secretary of the
57 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Company since 2017.He was born in 1975 is a Chinese national of Han ethnicity and holds a bachelor’s degree. He joined Meihua MSG in July 2002. His previous positions include manager of the
production office manager of the amino acid project department production manager for eastern Tongliao deputy general manager at Tongliao Meihua general manager of the
Wang You
Xinjiang Base and deputy general manager of the Company. He currently serves as the director of the HSE Management Department of the Company’s Production Technology
Research Institute.Other information
□ Applicable √ Not applicable
58 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(II). Positions held by the directors and officers currently in office and those who resigned during
the Reporting Period
1. Positions held in shareholders
□ Applicable √ Not applicable
2. Positions in other entities
√ Applicable□ Not applicable
Name of Position in the Start date of the term End date of the term
Name of entity
personnel entity of office of office
Lihuayi Weiyuan Chemical Co. Independent
December 22 2021 April 9 2027
Ltd. Director
Liu Xinghua
Sunrise Intelligent Manufacturing Independent
July 17 2024 July 16 2027
Group Co. Ltd. Director
China Isotope & Radiation Independent
February 25 2021
Corporation Director
Qianxin Technology Group Co. Independent
May 29 2025 May 28 2028
Ltd. Director
CICC Fund Management Co.Director April 22 2025
Ltd.Lu Chuang
Xinyin Financial Asset
Director November 21 2025
Investment Co. Ltd.Independent
Ourpalm Co. Ltd. January 25 2021 May 23 2025
Director
Independent
Beijing Bashi Media Co. Ltd. June 28 2022 September 22 2025
Director
Non-Executiv
Wang Aijun AIM Vaccine Corporation June 9 2021 April 13 2025
e Director
Explanation of
Ms. Wang Aijun Chairwoman of the Company resigned as a non-executive director and member of
positions in
the Compliance and Risk Control Committee of AIM Vaccine Corporation on April 13 2025.other entities
(III). Remuneration of directors and officers
√ Applicable□ Not applicable
The remuneration for the Company’s directors is determined by the general
Procedures for determining the meeting after being reviewed and approved by the board of directors. The
remuneration of directors and officers remuneration for officers is determined by the board of directors after being
reviewed by the remuneration and appraisal committee of the board.Do the directors avoid participating in
the discussion of their own Yes
remuneration
Circumstances where the remuneration At its 2nd meeting of 2025 the Company’s remuneration and appraisal
and appraisal committee or any committee reviewed and approved the 2024 performance assessment and
meetings of independent directors issue remuneration payment plan for directors supervisors and senior management
opinions on the remuneration of formulated the 2025 remuneration plan (draft) for directors supervisors and
59 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
directors and officers senior management and agreed to submit them to the board of directors for
deliberation.According to the Company’s 2025 Remuneration Plan for Directors
Supervisors and Senior Management directors and senior management who
receive remuneration from the Company and actually perform management
duties are subject to an annual salary system that combines position-based
salary grades with performance evaluations. The total remuneration consists of
Basis for determining the remuneration base salary position salary performance-based pay and incentive bonuses.of directors and officers The Human Resources Department prepares a remuneration report and submits
it to the Remuneration and Appraisal Committee for review. The Committee
confirms the final remuneration based on comprehensive evaluations
including job responsibilities and performance results; the specific amount of
allowance for independent directors of the Company shall be determined by
the board of directors based on the actual work performed each year.This is in accordance with the relevant regulations; please refer to the tableActual payment of the remuneration of titled “Changes in Shareholdings and Remuneration of Current and Formerdirectors and officers Directors and Senior Officers During the Reporting Period” above for specific
amounts.Total remuneration actually received by The total remuneration actually received from the Company by the directors
all directors and officers as of the end and officers was 20.03 million yuan (before tax) inclusive of deferments from
of the Reporting Period previous periods to the Reporting Period.Assessment basis and completion status
The remuneration assessment for directors and officers is determined based on
of the remuneration actually received
assessment targets linked to their specific job responsibilities and their actual
by all directors and officers as of the
completion status.end of the Reporting Period
During the Reporting Period the monthly base salary and monthly
Deferred payment arrangements for the
performance-based pay are paid in the following month the quarterly
remuneration actually received by all
performance-based pay is paid in the first month of the following quarter and
directors and officers as of the end of
part of the annual performance-based pay and incentive bonuses are paid after
the Reporting Period
the disclosure of the annual report in April 2026.During the Reporting Period no stop-payment or clawback occurred for all
directors and officers.The Company revised the “Directors and Officers Remuneration ManagementStop-payment and clawback status ofSystem” which specifies the circumstances related to stop-payment and
the remuneration actually received by
clawback. The system was reviewed and approved at the second meeting of the
all directors and officers as of the end
11th Board of Directors on April?21?2026 and is still subject to deliberation
of the Reporting Period
by the general meeting. For details please refer to the relevant announcements
disclosed by the Company on the website of the Shanghai Stock Exchange
(www.sse.com.cn).(IV). Changes in directors and officers
√ Applicable□ Not applicable
Name Position Type of Change Reason
Liang Yubo Deputy General Manager Resigned Change of term
Liang Yubo Senior Deputy General Manager Appointed Change of term
60 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Wang Ailing Senior Deputy General Manager Appointed Change of term
Wang You Deputy General Manager Resigned Change of term
Zhou Zhen Independent Director Elected Change of term
Liu Xiaojing Employee Representative Director Elected Change of term
(V). Explanation of punishments by securities regulatory bodies during the last three years
□ Applicable √ Not applicable
(VI). Miscellaneous
□ Applicable √ Not applicable
IV. Duty Performance of Directors
(I). Directors’ participation in board meetings and general meetings
Participation
Whether
Attendance at board meetings in general
the
meetings
director
Name of Attendanc Failed to
is an
director Due Attenda e by Attendan attend two Attendance at
indepen
attendance nce in means of ce by Absence consecutive general
dent
for the year person telecomm proxy meetings in meetings
director
unication person
Wang Aijun No 8 8 1 0 0 No 3
He Jun No 8 7 1 1 0 No 3
Liang Yubo No 8 8 2 0 0 No 3
Liu Xinghua Yes 8 8 5 0 0 No 2
Lu Chuang Yes 8 8 5 0 0 No 2
Zhou Zhen Yes 1 1 0 0 0 No 1
Liu Xiaojing No 1 1 0 0 0 No 2
Explanation of failure to attend two consecutive meetings in person
□ Applicable √ Not applicable
Number of board meetings held in the year 8
including: number of onsite meetings 3
number of meetings held by means of telecommunication 1
number of meetings held onsite and by means of
4
telecommunication
(II). Circumstances where directors raised an objection to any matter
□ Applicable √ Not applicable
(III). Miscellaneous
□ Applicable √ Not applicable
61 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
V. Information of Specialized Committees under the Board of Directors
√ Applicable□ Not applicable
(I). Members of the specialized committees under the board of directors
Type of special committee Member names
Audit Committee Lu Chuang Zhou Zhen Wang Aijun
Nomination Committee Liu Xinghua Wang Aijun Lu Chuang
Remuneration and Appraisal Committee Zhou Zhen Liu Xinghua He Jun
Strategy Committee Wang Aijun He Jun Liang Yubo Liu Xinghua Lu Chuang
Note: The Company completed the election of members for the 11th Board of Directors and its specialized committees on
December 29 2025. For details regarding the members of the specialized committees of the 10th Board of Directors
please refer to the relevant announcements previously disclosed by the Company on the Shanghai Stock Exchange
website (www.sse.com.cn).(II). The audit committee held six meetings during the Reporting Period.Other
duty
Date Content Important opinions and suggestions
performan
ce
At the meeting the committee members
reviewed and discussed the audit firm’s audit
Conducted pre-audit discussions with plan offered suggestions and agreed to
Zandar to hear the audit firm’s report on proceed with the audit of the 2024 annual
January 23 2025 the overall audit of the Company’s 2024 report and internal controls in accordance with
annual report and internal controls as well the audit plan. They recommended that Zandar
as key focus areas and the audit plan. maintain timely communication with the
Company and provide feedback on any issues
that arise during the audit process.The Audit Committee provided
Reviewed the Company’s 2024 Annual
recommendations on the Audit Department’s
Report; reviewed the internal control
2025 work plan; it focused on the three major
evaluation report issued by the Company
financial statements in the financial report and
and the internal control audit report issued
concluded that the Company’s 2024 annual
by Zandar; Heard the Audit Committee’s
report truthfully and fairly reflects the
2024 performance report; reviewed the
Company’s operating performance for the“Meihua Bio Semi-Annual Inspection
2024 fiscal year; it determined that the changesReport” issued by the Company’s Audit
in accounting policies comply with relevant
March 17 2025 Department as well as the Audit
laws and regulations; and it found that
Department’s 2024 audit work summary
Zandar’s audit procedures were conducted in a
and 2025 work plan; provided comments
standardized and orderly manner and that the
on changes to accounting policies;
audit report issued was objective impartial
evaluated the performance of the engaged
complete clear and timely; The Audit
accounting firm and provided an
Committee effectively supervised the audit
explanation regarding the firm’s
work and faithfully fulfilled its supervisory
fulfillment of its supervisory
duties regarding the engaged accounting firm.responsibilities.The meeting agreed to submit the relevant
62 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
proposals to the Board of Directors for review.The committee focused on the three major
financial statements in the financial report and
concluded that the Company’s Q1 report for
The main audit work summary for Q1
2025 provides a true and fair view of the
2025 and the work plan for Q2 2025 were
April 21 2025 Company’s operating performance for the Q1
reviewed; the Q1 2025 report was
of 2025; it agreed to submit the report to the
preliminarily examined.Company’s board of directors for review. The
committee also approved the Audit
Department’s work plan for the Q2.The committee focused on the three major
financial statements in the financial report and
concluded that the Company’s 2025
Semi-Annual Report truthfully and fairly
reflects the Company’s operating performance
The main audit work summary for Q2
for the first half of 2025; it agreed to submit
2025 and the work plan for Q3 2025 were
the report to the Company’s Board of Directors
reviewed; the Half-Year Report for 2025
for review. The committee also offered
was preliminarily examined.August 19 2025 recommendations regarding the Audit
Consideration of the Proposal Regarding
Department’s Q3 work plan; agreed to the
the Selection of an Audit Firm for the
Company’s selection of RSM China CPA LLP
Company’s 2025 Financial Statements
as the auditor for the Company’s 2025 annual
and Internal Control Audit
financial statements and internal control audit
and agreed to submit the relevant resolution to
the Company’s Board of Directors for review;
paid close attention to the procedures related to
the selection of the accounting firm.The committee focused on the three major
financial statements in the financial report and
concluded that the Company’s Q3 2025 report
The main audit work summary for Q3
accurately and fairly reflects the Company’s
2025 and the work plan for Q4 2025 were
October 29 2025 operating performance for the Q3 of 2025; it
reviewed; the Q3 2025 report was
agreed to submit the report to the Board of
preliminarily examined.Directors for review. The committee also
approved the Audit Department’s work plan
for the fourth quarter.The Audit Committee reviewed the basic
background work history professional
capabilities and qualifications of Ms. Wang
Lihong the proposed CFO of the Company.Consideration of the Proposal to Appoint The Committee determined that she meets the
December 29 2025
the Company’s CFO eligibility criteria and requirements for senior
management positions as stipulated by relevant
laws and regulations. Furthermore given Ms.Wang Lihong’s extensive experience in
financial management and her professional
63 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
knowledge and competence to fulfill the duties
of CFO the Committee approved her
appointment to the position and agreed to
submit the relevant resolution to the
Company’s Board of Directors for
consideration.(III).The nomination committee held two meetings during the Reporting Period.Other duty
Date Content Important opinions and suggestions performan
ce
The Nomination Committee reviewed the basic
information work experience qualifications
and independence of the director candidates
and determined that all candidates meet the
relevant qualification criteria and requirements
stipulated by applicable laws and regulations
and possess the qualifications and capabilities
Consideration of the proposal to nominate
to serve as candidates for the Company’s Board
candidates for non-independent directors
of Directors. The committee agrees to nominate
of the 11th board of directors and the
December 10 2025 Ms. Wang Aijun Mr. He Jun and Mr. Liang
proposal to nominate candidates for
Yubo as candidates for non-independent
independent directors of the 11th board of
directors of the Company’s 11th Board of
directors
Directors and agrees to nominate Mr. Liu
Xinghua Mr. Lu Chuang and Mr. Zhou Zhen
as candidates for independent directors of the
Company’s 11th Board of Directors. The
Committee further agrees to submit the relevant
resolutions to the Board of Directors for
deliberation.The Nomination Committee reviewed the basic
information work experience professional
capabilities and qualifications of the proposed
officers candidates and determined that all of
them meet the eligibility criteria and
requirements for officers positions as stipulated
by relevant laws and regulations and possess
Consideration of the proposal to appoint
December 29 2025 the qualifications and capabilities to serve as
officers of the Company
officers of the Company. The Committee
agrees to appoint Mr. He Jun as General
Manager of the Company Mr. Liang Yubo and
Ms. Wang Ailing as Senior Deputy General
Managers Ms. Wang Lihong as CFO and
agrees to submit the proposals for the
appointment of the aforementioned officers to
64 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
the Company’s Board of Directors for
deliberation.(IV).The remuneration and appraisal committee held three meetings during the Reporting Period.Other duty
Date Content Important opinions and suggestions performan
ce
The Remuneration and Appraisal Committe has
Consideration of the proposal regarding
approved the Company’s implementation of the
the Company’s 2025 Employee Stock
2025 Employee Stock Ownership Plan and has
Ownership Plan (Draft) and its summary;
February 11 2025 agreed to submit the relevant proposals
consideration of the proposal regarding
regarding the 2025 Employee Stock Ownership
the management rules for the Company’s
Plan to the Company’s Board of Directors for
2025 Employee Stock Ownership Plan
consideration.The Remuneration and Appraisal Committee
believes that the remuneration n to be paid for
the 2024 fiscal year is consistent with market
norms performance contributions and industry
The 2024 performance appraisal and
remuneration levels; aligns with the principle of
remuneration payment plan for directors
aligning responsibilities authority and
supervisors and officers was deliberated
March 17 2025 benefits; and is conducive to the Company’s
and approved and the 2025 remuneration
operational management and the achievement
scheme (Draft) for directors supervisors
of its strategic objectives. The Committee
and officers was formulated.agrees to submit the matter to the Company’s
Board of Directors for review and approves the
submission of the 2025 remuneration plan to
the Board for review.The Remuneration and Appraisal Committee
Consideration of the proposal regarding
has approved the Company’s implementation of
the Company’s 2026 Employee Stock
the 2026 Employee Stock Ownership Plan and
Ownership Plan (Draft) and its summary;
December 11 2025 has agreed to submit the relevant proposals
consideration of the proposal regarding
regarding the 2026 Employee Stock Ownership
the management rules for the Company’s
Plan to the Company’s Board of Directors for
2026 Employee Stock Ownership Plan
consideration.(V). The strategy committee held one meetings during the Reporting Period.Other duty
Date Content Important opinions and suggestions performan
ce
The members of the Strategy Committee
Reviewed the Company’s major thoroughly discussed and reviewed the
investment plan for 2025 and matters Company’s 2024 Sustainability Report and
March 17 2025
related to the Company’s sustainable agreed to submit it to the Board of Directors for
development projects review; they focused their discussion on the
scale and plans for the Company’s 2025
65 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
investment projects and agreed to submit the
2025 investment plan to the Board of Directors
for review.(VI).Circumstances where an objection was raised to any matter
□ Applicable √ Not applicable
VI. Explanation of Circumstances Where the Audit Committee Identified Risks in the Company
□ Applicable √ Not applicable
The audit committee had no objections to supervised matters during the Reporting Period.VII. Staff Overview of the Parent Company and Key Subsidiaries as at the end of the Reporting
Period
(I). Staff overview
Headcount of the parent company 915
Headcount of key subsidiaries 12253
Total headcount 13168
Number of retirees for whom the parent company and key
0
subsidiaries are required to bear costs
Specialty
Type of specialty Number of employees
Production personnel 9538
Sales personnel 354
Technical personnel 769
Financial personnel 366
Administrative personnel 119
Management personnel 2022
Total 13168
Educational level
Educational level Number of employees
PhD candidate 32
Master's candidate 355
Bachelor’s degree 2068
Diploma 3392
High school and below 7321
Total 13168
(II). Remuneration policy
√ Applicable□ Not applicableThe Company has consistently upheld the philosophy of “all staff involved in business valuecreation and sharing” and adheres to the compensation principles of “three fairnesses and one more”(fairness impartiality transparency and more pay for outstanding talents) and “three highs and one
66 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025low” (lowest labor cost per ton of product highest local wage level highest industry wage level and
highest per capita productivity) and continuously builds and improves a systematic and sustainable
compensation system.The total compensation package consists of fixed pay (base salary position-based pay and
skill-based pay) and performance-based pay (monthly performance bonuses quarterly performance
bonuses annual performance bonuses and the incentive bonus pool). In accordance with the relevantprovisions of the “Proposal on Further Improving the Performance Evaluation and IncentiveMechanism” approved at the 2021 Annual General Meeting the incentive bonus pool is set aside
annually at a certain percentage of the annual net profit margin and distributed from the top down. In
accordance with the organizational structure the total bonus pool is first calculated and then the bonus
pools for each entity are calculated based on the profit center management units of each subsidiary
(production down to production lines procurement down to departments and sales down to divisions).In 2025 the Company remained committed to sharing the fruits of its growth with its employees.Through a diverse range of incentive measures—including pay raises based on competency certification
project bonuses performance bonuses and employee stock ownership plans—the Company effectively
encouraged employees to enhance their professional skills motivated them to excel in their roles and
fostered continuous value creation.In addition the Company continues to refine its employee benefits system. Through a range of
support measures—including housing transportation and meal allowances—we are committed to
creating a comfortable respectful and inclusive work and development environment laying a solid
foundation for the mutual growth and sustainable development of both employees and the Company.Through these initiatives the Company has consistently raised the income levels of all employees
fostering a long-term stable and harmonious upward trend in both business performance and employee
compensation.(III). Training plan
√ Applicable□ Not applicableIn 2025 the Company will continue to deepen its talent development strategy of “tieredempowerment” and “integrating training with practical application” iteratively refine its training system
strengthen performance evaluations based on real-world experience and specialized training and
systematically enhance the professional competence and job readiness of employees at all levels.For senior core management personnel the Company has established a dual-track development
model combining “external education and training” with “internal development.” During the reporting
period the Company completed the establishment of the core framework for this development program:
on the one hand it selected a group of outstanding executives to participate in authoritative external
MBA programs to absorb advanced management concepts and industry experience; on the other hand it
selected a group of key personnel to undergo specialized internal training leveraging their role in
67 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
“mentoring and guiding” others to create an empowerment mechanism where “key personnel drive thecapability enhancement of internal employees.”
To strengthen the development of middle and front-line management teams the Company has made
the training of department heads and shift supervisors a regular initiative in 2025. During the reporting
period the Company conducted a total of four specialized training sessions for department heads
training a cumulative total of 93 mid-level production managers. Additionally the Company
successfully completed training for 396 shift supervisor candidates and provided off-the-job training for
21 incumbent shift supervisors. These efforts optimized the age and competency structures of the
frontline management team providing strong support for improving the Company’s operational
efficiency.In terms of professional and technical talent development the Company has launched specialized
training programs for technical engineers and established a tiered training system comprising
“entry-level intermediate and advanced” levels. In 2025 strictly adhering to the plan established at the
beginning of the year the Company has fully completed the training of entry-level technical personnel.During the reporting period a total of 15 training sessions were conducted training 382 participants. At
the same time the Company has provided pathways for shop floor workers to advance to technical
engineer positions through initiatives such as employee interest classes and workshop cultural activities
thereby fostering a vibrant work environment.The Company also encourages employees to continuously enhance their professional skills. In 2025
it will launch a special initiative to help potential successors in key departments—such as safety and
environmental protection—obtain professional certifications including the Registered Safety Engineer
certification. The Company will incorporate the attainment of these certifications into the core metrics
for job qualification assessments and promotion evaluations thereby incentivizing employees to
proactively improve their professional capabilities.In terms of cultivating future leaders the Company employs a three-pronged development modelfor management trainees: “one-third job rotation + one-third project work + one-third departmentaltraining.” Following onboarding training participants are rotated through substantive and challenging
frontline roles in sales procurement production and other departments. Once their career direction is
clarified they undergo pre-employment training for their target positions at the next level. Concurrently
they receive practical training through project-based assignments to enhance their problem-solving and
teamwork skills. Moving forward the Company will continue to optimize its management trainee
development system consistently identifying and cultivating high-caliber management talent to provide
sustained momentum for the Company’s high-quality development.In addition the Company places great emphasis on recruiting and integrating new talent and has
consistently conducted new employee training programs. By 2025 a total of 125 training sessions had
been held. Through systematic and standardized training the Company has empowered new employees
to quickly familiarize themselves with the corporate culture master job-specific skills and adapt to the
68 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
pace of work thereby enabling them to fully realize their potential and inject fresh vitality into the
Company’s sustained and healthy development.(IV). Labor outsourcing
√ Applicable□ Not applicable
Total man hours of labor outsourcing 1501888
Total remuneration paid for labor outsourcing (yuan) 73043369.86
VIII. Plans for Profit Distribution or the Conversion of Capital Reserve
(I). Formulation implementation or adjustment to the cash dividend policy
√ Applicable□ Not applicable
During the reporting period the Company placed a high priority on shareholder returns. At the
second extraordinary general meeting of shareholders held on December 29 2025 the revised Articles
of Association were reviewed and approved further clarifying and refining the cash dividend policy and
enhancing the standardization and transparency of profit distribution. For specific details please refer to
the relevant announcements disclosed by the Company on the Shanghai Stock Exchange website
(www.sse.com.cn).The changes to the cash dividend policy in the Articles of Association before and after the revision
are as follows:Before the revision: “The specific conditions for cash dividends
1. The Company’s distributable profits for the fiscal year (i.e. the after-tax profits remaining after
offsetting losses and setting aside capital reserves) are positive;
2. The audit firm issues an unqualified audit opinion on the Company’s financial statements for the
fiscal year;
3. The Company has no plans for significant external investments or major cash expenditures
within the next twelve months (excluding projects funded by raised capital);
4. The weighted average return on net assets for the fiscal year calculated based on net profit
attributable to common shareholders (using the lower of the amounts before and after adjusting for
non-recurring gains and losses) is not less than 6%;
5. If the audited debt-to-equity ratio at the end of the fiscal year exceeds 70% the Company may
refrain from distributing cash dividends.Revised: “The specific conditions and ratios for cash dividendsThe following specific conditions must be met simultaneously when distributing cash dividends:
1. The Company’s distributable net profit for the current fiscal year or half-year (i.e. the after-tax
profit remaining after offsetting losses and setting aside statutory reserves) is positive (based on the
parent company’s financial statements) and the Company has sufficient cash flow such that the payment
of cash dividends will not affect its ongoing operations;
2. The parent company’s cumulative distributable profits are positive;
69 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
3. The audit firm issues an unqualified audit opinion on the Company’s financial statements for the
current fiscal year;
4. The Company has no plans for major external investments or significant cash outflows within the
next 12 months (excluding projects funded by raised capital);
5. The Company has sufficient funds and its profitability and cash flow are sufficient to support
ongoing operations and long-term development.“Cash dividend ratio: Provided that the conditions for cash dividends are met and the Company hasno major capital expenditure plans the cumulative cash dividends distributed over the past three yearsshall not be less than 30% of the average annual distributable profits achieved over the same period.”
During the reporting period the Company implemented and completed its 2024 annual profit
distribution plan on May 23 2025 distributing a cash dividend of RMB 0.42597 per share to all
shareholders for a total cash dividend of RMB 1199991716.69. For further details please refer to theCompany’s “Announcement on the Implementation of the 2024 Annual Equity Distribution of MeihuaBio Group Co. Ltd.” (Announcement No. 2025-039) available on the Shanghai Stock Exchange website
at http://www.sse.com.cn.The 2025 annual profit distribution plan (preliminary proposal) was deliberated and approved at the
second meeting of the 11th Board of Directors. The proposal is to distribute a cash dividend of 0.4279
yuan per share (inclusive of tax) based on the total share capital as of the equity distribution record date
(excluding the number of shares held in the repurchase account). As of December 31 2025 the total
share capital of the Company is 2804241650 shares and based on this the total cash dividend to be
distributed is estimated at 1199935002.04 yuan (inclusive of tax).This proposal is subject to approval at the Shareholders’ Meeting and the actual distribution
amount will be based on the equity distribution implementation announcement issued by the Company.If there are any changes in the total share capital before the equity distribution record date the total
distribution amount will remain unchanged and the per-share distribution ratio will be adjusted
accordingly. In accordance with regulations the Company’s board of directors will complete the
distribution of equity within two months after the shareholders’ meeting approves the profit distribution
plan.In addition the Company has formulated the “Three-Year (2026–2028) Shareholder DividendReturn Plan” which was reviewed and approved at the second meeting of the 11th Board of Directors
and is pending submission to the 2025 Annual General Meeting of Shareholders for approval.The formulation implementation and adjustment of the Company’s profit distribution plan are in
full compliance with the relevant provisions of the Articles of Association. Going forward the Company
will continue to enhance shareholder returns through a combination of cash dividends and share
buybacks and cancellations.(II). Explanation of specific matters related to the cash dividend policy
√ Applicable□ Not applicable
70 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Did it conform to the provisions of the articles of association or the requirements of the
√ Yes□ No
general meeting’s resolution
Were the distribution standard and proportion specified and clear √ Yes□ No
Were the relevant decision-making procedures and mechanism complete √ Yes□ No
Did the independent directors perform their duties and play their due roles √ Yes□ No
Did the minority shareholders have adequate chance to express their opinions and appeals
√ Yes□ No
Were their legitimate rights and interested protected fully
(III). For the circumstance where the Company made a profit and the parent company’s profit
distributable to shareholders was positive but no cash profit distribution plan was proposed
during the Reporting Period the Company should disclose the reasons as well as the use and
use plan of the retained profit in detail.□ Applicable √ Not applicable
(IV). Plans for profit distribution and the conversion of capital reserve during the Reporting
Period
√ Applicable□ Not applicable
Unit: yuan Currency: RMB
Number of bonus shares per 10 shares (share) 0
Amount of dividends per 10 shares (yuan) 4.279
Number of shares for conversion per 10 shares (share) 0
Amount of cash dividends (inclusive of tax) 1199935002.04
Net profit distributable to the common shareholders of the listed company in
3280879912.10
the consolidated statements for the year of dividend distribution
Percentage in the net profit distributable to the common shareholders of the
36.57
listed company in the consolidated statements (%)
Amount of share buybacks in cash that are included in cash dividends 204301265.44
Total dividends (inclusive of tax) 1404236267.48
Percentage of total cash dividends in the net profit attributable to the
42.80
common shareholders of the Company in the consolidated statements (%)
(V). Recent cash dividend distribution in the last three accounting years
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Cumulative cash dividend amount (tax included) in the last three accounting
4097331538.57
years (1)
Cumulative repurchased and cancelled amount in the last three accounting
1667275262.16
years (2)
Cumulative cash dividend and repurchase cancellation amount in the last
5764606800.73
three accounting years (3) = (1) + (2)
Average annual net profit in the last three accounting years (4) 3067418941.05
Cash dividend ratio in the last three accounting years (%) (5) = (3) / (4) 187.93
Net profit attributable to common shareholders of the listed company in the
3280879912.10
latest accounting year (Consolidated financial statements)
71 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Unappropriated profit at the end of the latest accounting year (Parent
2919941598.99
company financial statements)
IX. Information of the Company’s Share Incentive Plan Employee Stock Ownership Plan or
Other Staff Incentives and Their Impact
(I). Relevant incentives that were disclosed in the provisional announcement and had no progress
or change in subsequent implementation
□ Applicable √ Not applicable
(II). Incentives that were not disclosed in the provisional announcement or made progress
subsequently
Share incentives
□ Applicable √ Not applicable
Other information
□ Applicable √ Not applicable
Employee stock ownership plan
√ Applicable □ Not applicable
1. Employee Stock Ownership Plan for 2021
The Company held the 14th meeting of the ninth board of directors and the first extraordinary
general meeting of 2021 on January 14 2021 and February 1 2021 respectively. At the meetings the
Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2021 and its Summary the
Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2021
and the Proposal on Requesting Full Authorization from the Annual General Meeting for the Board of
Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were
deliberated and approved. For details refer to the relevant announcements published by the Company on
the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on January 15 2021 and February
2 2021 respectively.
Based on confidence in the Company’s sustainable development and the judgment of its share value
the extension of the 2021 Employee Stock Ownership Plan for an additional 36 months to February 11
2027 was deliberated and approved at the first extraordinary general meeting of 2024.
As of the date of this report all of the shares held under the Company’s 2021 Employee Stock
Ownership Plan have been sold and the plan has been fully implemented and terminated.
2. Employee Stock Ownership Plan for 2022
The Company held the 27th meeting of the ninth board of directors and the second extraordinary
general meeting of 2021 on December 15 2021 and December 31 2021 respectively. At the meetings
the Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2022 and its Summary the
Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2022
and the Proposal on Requesting Full Authorization from the Annual General Meeting for the Board of
Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were
72 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
deliberated and approved. For details refer to the relevant announcements published by the Company on
the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on December 16 2021 and
January 1 2022 respectively.The Company’s 2022 Employee Stock Ownership Plan was automatically terminated upon the
expiration of its term on January 9 2025. All Company shares held under the plan have been fully sold
and the liquidation of the relevant assets has been completed.
3. Employee Stock Ownership Plan for 2023
The Company held the 35th meeting of the ninth board of directors and the first extraordinary
general meeting of 2023 on December 21 2022 and January 6 2023 respectively. At the meetings the
Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2023 and its Summary the
Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2023
and the Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors
to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and
approved. For details refer to the relevant announcements published by the Company on the website of
the Shanghai Stock Exchange (http://www.sse.com.cn) on December 22 2022 and January 9 2023.As of the date of this report all of the shares held under the Company’s 2023 Employee Stock
Ownership Plan have been sold and the plan has been fully implemented and terminated.
4. Employee Stock Ownership Plan for 2024
The Company held the 8th meeting of the tenth board of directors and the first extraordinary
general meeting of 2024 on January 16 and February 1 2024 respectively. At the meetings the Proposal
on the Company’s Employee Stock Ownership Plan (Draft) for 2024 and its Summary the Proposal on
the Management Measures for the Company’s Employee Stock Ownership Plan for 2024 and the
Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors to
Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and
approved. For details refer to the relevant announcements published by the Company on the website of
the Shanghai Stock Exchange (http://www.sse.com.cn) on January 17 and February 2 2024.As of June 27 2024 the Company’s designated account for the 2024 employee stock ownership
plan had purchased a total of 18527100 shares of the Company through centralized bidding on the
secondary market with a total transaction amount of 192049194 yuan (excluding transaction fees) and
an average transaction price of approximately 10.37 yuan per share. The number of shares purchased
accounted for 0.65% of the Company’s current total share capital of 2852788750 shares. In accordance
with the plan approved at the first extraordinary general meeting of 2024 the purchase under the 2024
employee stock ownership plan has been completed. The purchased shares are subject to lock-up and
will be unlocked in two phases after 12 and 24 months from the date of the announcement with the
maximum lock-up period being 24 months. The proportions of shares to be unlocked in each phase are
50% and 50% respectively.
As of the end of the Reporting Period the vesting conditions for the first phase of the Company’s
2024 Employee Stock Ownership Plan had been satisfied and 50% of the units had been released from
73 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
lock-up. The Company’s designated account for the 2024 Employee Stock Ownership Plan held
9266101 shares accounting for 0.33% of the Company’s current total share capital of 2804241650
shares.
5. Employee Stock Ownership Plan for 2025
The Company held the 17th meeting of the tenth board of directors and the first extraordinary
general meeting of 2025 on February 11 and February 27 2025 respectively. At the meetings the
Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2025 and its Summary the
Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2025
and the Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors
to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and
approved. For details refer to the relevant announcements published by the Company on the website of
the Shanghai Stock Exchange (http://www.sse.com.cn) on February 12 and February 28 2025.As of the close of trading on August 1 2025 the Company’s designated account for the 2025
employee stock ownership plan had purchased a total of 21042422 shares of the Company through
centralized bidding on the secondary market with a total transaction amount of 225143665.20 yuan
(excluding transaction fees) and an average transaction price of approximately 10.70 yuan per share. The
number of shares purchased accounted for 0.74% of the Company’s total share capital at that time of
2852788750 shares. In accordance with the plan approved at the first extraordinary general meeting of
2025 the purchase under the Company’s 2025 employee stock ownership plan has been completed. The
purchased shares are subject to lock-up and will be unlocked in two phases after 12 and 24 months from
the date of the announcement disclosing the completion of the purchase with the maximum lock-up
period being 24 months. The proportions of shares to be unlocked in each phase are 50% and 50%
respectively.As of the date of this report the shares under the 2025 employee stock ownership plan remain
subject to lock-up.
6. Employee Stock Ownership Plan for 2026
The Company held the 23rd meeting of the tenth board of directors and the second extraordinary
general meeting of 2025 on December 11 and December 29 2025 respectively. At the meetings the
Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2026 and its Summary the
Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2026
and the Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors
to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and
approved. For details refer to the relevant announcements published by the Company on the website of
the Shanghai Stock Exchange (http://www.sse.com.cn) on December 12 and December 30 2025.As of the date of this report the Company has not yet purchased any shares under its 2026
Employee Stock Ownership Plan.Other incentives
□ Applicable √ Not applicable
74 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(III). Information of share incentives granted to directors and officers during the Reporting
Period
□ Applicable √ Not applicable
(IV). Appraisal mechanism for officers during the Reporting Period as well as the establishment
and implementation of the incentive mechanism
√ Applicable□ Not applicable
Adhering to the core philosophy of “Company-wide Management Creation and Sharing” the
Company has established a comprehensive performance management and compensation incentive
system for senior executives. The compensation received by senior executives consists of a base salary
position-based pay performance-based pay and incentive bonuses. The Company implements an annual
salary system for senior management that combines position-based pay grades with performance
evaluations. With the approval of the Board of Directors the Company may additionally award incentive
bonuses to senior management. Through the organic integration and gradual implementation of short-
medium- and long-term incentives the Company effectively promotes value creation among senior
management fostering a virtuous cycle of dynamic alignment between contributions and rewards and
continuously driving value creation and the sharing of results.In accordance with the requirements of the “Guidelines on Corporate Governance for ListedCompanies” and other relevant laws and regulations the Company has formulated the “RemunerationManagement System for Directors and Senior Management.” This system further clarifies matters such
as the proportion of performance-based compensation for senior executives deferred payment
arrangements and clawback mechanisms. The system was reviewed and approved by the Company’s
11th Board of Directors at its second meeting on April 21 2026 and is still subject to approval by the
shareholders’ meeting.The Company’s Board of Directors has established a remuneration and appraisal committee whose
primary responsibilities include formulating and reviewing compensation policies plans and evaluation
criteria for senior management as well as organizing and implementing performance evaluations and
assessments of senior management in accordance with established performance evaluation standards and
procedures. In designing the evaluation mechanism the Company adheres to the principle of aligning
authority with responsibility ensuring that the compensation levels of senior management are closely
linked to their contributions to their roles the Company’s overall performance and its long-term
strategic objectives thereby supporting the Company’s pursuit of sustainable high-quality development.The Company has long been committed to aligning the interests of its core management team with
those of the Company through incentive mechanisms. Since 2017 the Company has implemented seven
employee stock ownership plans and one restricted stock incentive plan. By setting challenging
company-wide performance targets and individual evaluation criteria the Company has deeply
integrated corporate development with personal growth. This mechanism has not only effectively
75 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
stimulated the initiative and creativity of senior management and key personnel but has also created an
internal driving force for the steady growth of key financial indicators such as revenue and net profit
achieving synergistic progress in strategy implementation performance improvement and talent
development.X. Development and Implementation of Internal Control Policies during the Reporting Period
√ Applicable□ Not applicable
In 2025 the Company strictly adhered to the “Basic Standards for Enterprise Internal Control” andrelevant laws and regulations. In accordance with the requirements of the Company’s “Internal ControlManagement System” and in light of the Company’s annual business objectives and actual development
needs the Company continued to advance the optimization refinement and effective implementation of
its internal control system.During the reporting period to further strengthen the development of its internal control framework
the Company in accordance with relevant laws and regulations and in light of changes in the internal
and external environment as well as internal governance and control requirements comprehensively
reviewed optimized and updated the processes and policies of all departments and business segments.The Company also revised relevant internal control management documents striving to establish a
scientifically designed and effectively functioning internal control system. This initiative aims to better
align with the Company’s current management practices and future development needs thereby
providing systematic support for the sound and compliant operation of all business activities and the
effective prevention and control of operational risks.The Company’s Board of Directors has established an audit committee to serve as the governing
body for the inspection and oversight of internal controls. Under the guidance of the Audit Committee
the Company’s internal audit department is responsible for the day-to-day inspection and evaluation of
internal control implementation. Together these two bodies constitute the Company’s risk and internal
control management framework providing comprehensive oversight and evaluation of the Company’s
internal control management.In 2025 the Company organized and conducted an internal control evaluation in accordance with
the corporate internal control standards and the Company’s regulations. In accordance with the
management requirements of the “Basic Standards for Enterprise Internal Control” and the Company’s
“Internal Control Management System” the evaluation focused on the Company’s core business
operations. It primarily involved internal control testing and evaluation across seven key business areas:
consignment management materials procurement product sales asset management operational control
engineering projects and human resources. This process accurately identified risk points in critical
processes collaborated with various business departments to establish and improve risk prevention and
control mechanisms optimized internal control requirements ensured the standardized operation of all
business activities and supported the Company’s high-quality and steady development.
76 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
During the reporting period the Company’s internal control system was effectively implemented
meeting management requirements and development needs and providing a strong foundation for the
sound operation of business activities and risk management. Based on an evaluation the Company’s
internal control system is complete reasonable and effective. As of the end of the reporting period
there were no material or significant internal control deficiencies. The system fulfilled its intended
management and control functions across all aspects of the Company’s operations effectively mitigating
operational risks and facilitating the achievement of the Company’s business objectives.For specific details regarding the Company’s internal control evaluation please refer to the
“Meihua Holding Group Co. Ltd. 2025 Annual Internal Control Evaluation Report” which was
disclosed on the Shanghai Stock Exchange website (www.sse.com.cn) on the same day as this report.Explanation of major defects in internal control during the Reporting Period
□ Applicable √ Not applicable
XI. Management and Control of Subsidiaries during the Reporting Period
√ Applicable□ Not applicable
Important subsidiaries of the Company include Tongliao Meihua Biotech Co. Ltd. Xinjiang
Meihua Amino Acid Co. Ltd. and Jilin Meihua Amino Acid Co. Ltd. among others. The Company
provides overall guidance process supervision and resource support to the corresponding business
departments of its subsidiaries and implements systematic management and control in such aspects as
standard operation human resource management financial management internal audit information
disclosure investment and financing management and operational appraisal thereby ensuring that the
operations of each subsidiary comply with the Company’s overall development strategy and internal
control requirements thus improving overall operational efficiency strengthening anti-risk capabilities
and realizing the security preservation and appreciation of the Company’s assets.During the Reporting Period each subsidiary strictly followed the Basic Standard for Enterprise
Internal Control and the Company’s unified standardized management systems and business processes.In alignment with the Company’s overall development strategy and annual operational goals the
subsidiaries developed tiered business plans and corresponding risk management mechanisms
continuously improved their internal control systems and promoted the effective integration of strategy
execution business operations and risk prevention and control.On July 1 2025 the Company and its wholly-owned subsidiary Singapore Company completed
the closing of the acquisition with Kyowa Hakko. The target assets included Kyowa Hakko’s food
amino acid and pharmaceutical amino acid businesses among others. These assets and businesses were
consolidated under Primeno a subsidiary of the Company’s wholly-owned subsidiary Singapore
Company.During the reporting period the Company actively advanced the operational integration and
management system alignment of its overseas subsidiary Primeno successfully completing the
full-cycle process from asset transfer to business handover.
77 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Risk Warning Regarding Abnormalities in Management Control of Subsidiaries
□ Applicable √ Not applicable
XII. Explanation of Relevant Information about the Internal Control Audit Report
√ Applicable□ Not applicable
The Company has engaged RSM China CPA LLP (Special General Partnership) to audit the
internal control of the Company during the Reporting Period. The internal control audit report
(Document No.: RSM Shen Zi [2026] 518Z0526) was issued which concluded that as of December 31
2025 the Company maintained effective internal control over financial reporting in all material respects
in accordance with the Basic Standard for Enterprise Internal Control and related regulations. For details
of the Company's internal control audit please refer to the 2025 Annual Internal Control Audit Report of
Meihua Holdings Group Co. Ltd. disclosed on the website of the Shanghai Stock Exchange
(www.sse.com.cn) on the same date as this report.Whether the internal control audit report is disclosed: Yes
Type of opinion of the internal control audit report: Standard Unqualified
Was a non-standard audit opinion on internal controls issued for the reporting period or the prior year
□Yes √No
XIII. Rectification of Self-identified Problems in Special Action for the Governance of Listed
Company
Not applicable
XIV. Environmental Information on Listed Companies and Their Major Subsidiaries Included in
the List of Entities Required to Disclose Environmental Information in Accordance with the
Law
√ Applicable□ Not applicable
Number of enterprises included in the list of
enterprises required to disclose
5
environmental information in accordance
with the law
Index for Querying Reports on the Disclosure of Environmental Information in
No. Company Name
Accordance with the Law
Enterprise Environmental Information Disclosure System (Inner Mongolia)
http://111.56.142.62:40010//support-yfpl-web/web/viewRunner.htmlviewId
Tongliao Meihua Biotechnology =http://111.56.142.62:40010//support-yfpl-web/web/sps/views/yfpl/views/
Co. Ltd. yfplHomeNew/index.js&cantonCode=150000
National Pollutant Discharge Permit Management Information Platform
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
Enterprise Environmental Information Disclosure System (Inner Mongolia)
Tongliao Jianlong Chemical Co.
2 http://111.56.142.62:40010/support-yfpl-web/web/viewRunner.htmlviewId
Ltd.=http://111.56.142.62:40010/support-yfpl-web/web/sps/views/yfpl/views/
78 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
yfplHomeNew/index.js&cantonCode=150000
National Pollutant Discharge Permit Management Information Platform
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
Xinjiang Meihua Amino Acids National Pollutant Discharge Permit Management Information Platform
3
Co. Ltd. https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
Enterprise Environmental Information Disclosure System (Jilin)
Jilin Meihua Amino Acids Co. http://36.135.7.198:9015/index
4
Ltd. National Pollutant Discharge Permit Management Information Platform
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
Enterprise Environmental Information Disclosure System (Shanghai)
Shanghai Pulimino Amino Acids https://e2.sthj.sh.gov.cn/jsp/view/hjpl/index.jsp
5
Co. Ltd. National Pollutant Discharge Permit Management Information Platform
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
Other information
√ Applicable□ Not applicable
In addition to the companies mentioned above the Company’s other wholly-owned
subsidiaries—such as Langfang Meihua Seasoning Food Co. Ltd. and Tongliao Meihua Seasoning Food
Co. Ltd. which are primarily engaged in the packaging and sale of seasonings; Lhasa Meihua which is
primarily engaged in external investments; Hong Kong Meihua a trading company primarily
responsible for the export sales of the Company’s products; and Meihua (Shanghai) Biotechnology Co.Ltd. which is primarily engaged in technology development—have not been included in the list of
enterprises required to disclose environmental information in accordance with the law.XV. Social Responsibility-Related Work
(I). Whether the social responsibility report the sustainable development report or the ESG
report was disclosed separately
√ Applicable□ Not applicable
The Company’s “2025 Environmental Social and Governance Report” was disclosed on the
Shanghai Stock Exchange website on the same day as this report. The disclosure URL is:
http://www.sse.com.cn.(II). Information of social responsibility-related work
√ Applicable□ Not applicable
External donations and charity projects Amount/content Remark
Total spending (‘0000 yuan) 390.110
including: funds (‘0000 yuan) 370.255
value of supplies (‘0000 yuan) 19.855
Number of beneficiaries (person) 137082
Other information
√ Applicable□ Not applicable
79 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
For detailed information on the Company’s corporate social responsibility initiatives please refer to
the Company’s “2025 Environmental Social and Governance Report” which was disclosed on the
Shanghai Stock Exchange website (www.sse.com.cn) on the same day as this report.XVI. Consolidation and Expansion of Achievements in Poverty Alleviation and Work Related to
Rural Revitalization
√ Applicable□ Not applicable
Poverty alleviation and rural revitalization projects Amount/content Remark
Total spending (‘0000 yuan) 73.6
including: funds (‘0000 yuan) 63.0
value of supplies (‘0000 yuan) 10.6
Number of beneficiaries (person) 2120
Form of support (such as industrial poverty alleviation poverty Industrial poverty alleviation
alleviation through employment opportunities poverty infrastructure poverty alleviation social
alleviation through education etc.) security poverty alleviation etc.Other information
√ Applicable□ Not applicable
During the reporting period the Company focused on rural industrial development and improving
living conditions injecting new vitality into sustainable development:
1. Promoting industrial and cultural development: The Company donated 300000 yuan to Layu
Township Qiongjie County Shannan City Tibet Autonomous Region earmarked for the rural
revitalization and infrastructure improvement project in Qiangji Village Layu Township to promote the
development of the local cultural industry.
2. Improving Infrastructure and Livelihoods: The Company donated 200000 yuan to Seqing
Township Nie Rong County Tibet Autonomous Region specifically for local rural revitalization
infrastructure projects (such as the repair of streetlights and the upgrading of lighting facilities); it also
donated 80000 yuan to Daobao Town Taobei District Baicheng City specifically to assist in poverty
alleviation efforts and support the construction of public infrastructure.
3. Supporting Model Development in Frontier Regions: We donated 50000 yuan to the Wujiaqu
City Charity Federation of the Sixth Division earmarked specifically to support the Aketao Rural
Demonstration Zone in Xinjiang in purchasing daily necessities and basic office supplies thereby
enhancing local social welfare and public service capabilities.
4. Empowering Agricultural Development: Tongliao Company and Xinjiang Company donated 140
tons and 7 tons of fertilizer respectively to local farmers. This tangible material support helps reduce
production costs for farmers while improving soil fertility and overall agricultural productivity.Going forward the Company will continue to support the national rural revitalization strategy
actively fulfill its social responsibilities help rural areas unleash their internal development potential
and promote the coordinated development of the economy society and the environment.
80 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
XVII. Miscellaneous
□ Applicable √ Not applicable
81 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Section 5 Significant Matters
I. Fulfillment of Commitments
(I). Commitments of relevant parties including the Company’s actual controller shareholders related parties acquirers and the Company
√ Applicable□ Not applicable
If it is not
Commitm Whether it If it is not fulfilled in
Type of Whether
ent Commitmen Date of is strictly fulfilled in due due course
commitme Content of commitment there is a Deadline
backgroun t made by commitment fulfilled in course state the state the plan
nt deadline
d due course specific reasons for the next
step
During the period when Mr. Meng Qingshan and the
persons acting in concert serve as the Company’s
Meng
Solving controlling shareholder and actual controller effective
Qingshan
horizontal measures will be taken and Mr. Meng Qingshan or the Not
and persons July 19 2010 No Yes Not applicable
Commitm competitio holding subsidiaries under Mr. Meng Qingshan and the applicable
acting in
ents n persons acting in concert will take effective measures not to
concert
related to engage in any business that may compete with that of the
the listed company or its subsidiaries.restructuri Upon completion of the restructuring Mr. Meng Qingshan
ng of and the persons acting in concert will avoid related-party
Solving Meng
major transactions with the listed company wherever possible. If
related-pa Qingshan
assets there is any unavoidable related-party transaction Mr. Not
rty and persons July 19 2010 No Yes Not applicable
Meng Qingshan and the persons acting in concert will enter applicable
transactio acting in
into agreements with the listed company in accordance with
ns concert
laws perform lawful procedures fulfill the duty of
information disclosure and go through formalities to obtain
82 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
approval in accordance with relevant laws regulations and
the Articles of Association. They undertake not to harm the
legitimate rights and interests of the listed company and
other shareholders through related-party transactions.Meng Upon completion of the transaction they will maintain the
Qingshan independence of the listed company observe the principle
Not
Others and persons of separation in personnel finance institution and July 19 2010 No Yes Not applicable
applicable
acting in business and run the listed company in accordance with the
concert relevant CRSC rules.
83 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(II). Whether the Company reached the original profit forecast in respect of any asset or project if
there was a profit forecast for the asset or project and it was still the profit forecast period during
the Reporting Period and statement of the reasons
□ Yes□ No √ Not applicable
(III). Performance Commitments
□ Applicable√ Not applicable
Changes to Performance Commitments
□ Applicable√ Not applicable
Other information
□ Applicable√ Not applicable
84 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
II. Use of Funds by Controlling Shareholder and Related Parties for Non-operational Purposes During the Reporting Period
□ Applicable √ Not applicable
III. Guarantees in Violation of Regulations
□ Applicable √ Not applicable
85 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
IV. Notes of the Board of Directors on the “Modified Audit Report” from the CPA Firm
□ Applicable √ Not applicable
V. Analysis of the Reasons for Changes in Accounting Policies or Accounting Estimates or
Correction of Material Accounting Errors and the Effect
(I). Analysis of the reasons for changes in accounting policies or accounting estimates and the
effect
√ Applicable□ Not applicable
1. Changes in significant accounting policies
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Name of
financial
Amount
Changes in accounting policies and the reasons statement item
affected
significantly
affected
The Company will apply ‘Interpretation No. 19 of the Enterprise Accounting Standards’
(Cai Kui [2025] No. 32) issued by the Ministry of Finance on 5 December 2025 with None None
effect from 1 January 2026.Adjustment process and other information:
None
2. Changes in significant accounting estimates
□ Applicable √ Not applicable
(II). Analysis of the reasons for correction of material accounting errors and the effect
□ Applicable√ Not applicable
(III). Communication with previously appointed CPA firms
√ Applicable□ Not applicable
During the reporting period the Company communicated with both the former and the incoming
accounting firms regarding the change of auditor. Both parties were informed of the change and raised
no objections. The former and incoming accounting firms conducted communications and responded to
relevant inquiries in accordance with the China Standards on Auditing No. 1153 — Communication
Between Predecessor and Successor Auditors and other applicable requirements.(IV). Review and approval procedures and other information
√ Applicable□ Not applicable
The aforementioned changes to accounting policies were approved at the second meeting of the
Company’s 11th Board of Directors; the aforementioned change of accounting firm was approved at the
20th meeting of the Company’s 10th Board of Directors and at the second extraordinary general meeting
of 2025.
86 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
VI. Appointment and Dismissal of CPA Firms
Unit: Yuan Currency: RMB
Former CPA firm in service Current CPA firm in service
Zandar (Shenzhen) CPAs LLP
(special general partnership) RSM China CPA LLP (Special
Name of domestic CPA firm
(formerly known as Da Hua CPAs General Partnership)
LLP (special general partnership))
Remuneration for domestic CPA firm 1400000 2100000
Limit on years of audit by domestic
11
CPA firm
Names of CPAs from domestic CPA
Liu Qianqian Li Qianqian Gong Chenyan Li Qianqian
firm
Total years of audit service by CPAs Liu Qianqian (1 year) Li Qianqian Gong Chenyan (4 years) Li Qianqian
from domestic CPA firm (3 years) (4 years)
Name Remuneration
RSM China CPA LLP
CPA firm for internal control audit 800000
(Special General Partnership)
Explanation of appointment and dismissal of CPA firm
√ Applicable □ Not applicableIn accordance with the “Measures for the Selection and Appointment of Accounting Firms byState-Owned Enterprises and Listed Companies” and other relevant regulations and after
comprehensively considering the Company’s business development and overall audit requirements and
to ensure the independence objectivity and fairness of the audit work the Company’s 10th board of
directors’ 20th Meeting and the 2025 second extraordinary general meeting of shareholders have
approved the following: the Company has appointed RSM China CPA LLP (Special General Partnership)
as its auditor for the 2025 financial statements and internal control audit to provide audit services to the
Company.Explanation of appointment of another CPA firm during the audit period
□ Applicable √ Not applicable
Explanation of a reduction in audit fees by more than 20% (inclusive) from prior year
√ Applicable□ Not applicable
Due to the establishment of new overseas subsidiaries following the Company’s cross-border
acquisition there has been a corresponding increase of 700000 yuan in overseas audit services; this
change in expenses is consistent with the Company’s actual circumstances.VII. Delisting Risk
(I). Causes of delisting risk warning
□ Applicable √ Not applicable
87 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(II). Countermeasures planned by the Company
□ Applicable √ Not applicable
(III). Termination of listing
□ Applicable √ Not applicable
VIII. Bankruptcy and Restructuring-Related Matters
□ Applicable √ Not applicable
IX. Significant Litigation and Arbitration
√ The Company had significant litigation or arbitration in the year□ The Company did not have
significant litigation or arbitration
(I). Circumstances in which litigation or arbitration was disclosed in provisional announcements
but did not subsequently progress
√ Applicable□ Not applicable
Case Overview and Type Index SearchFor further details please refer to the “Announcement byMeihua Biotechnology Group Co. Ltd. Regarding
The patent infringement lawsuit between the Company andLitigation Involving the Company and Its Subsidiaries”
Ajinomoto Co. Inc. of Japan has been accepted by the
(Announcement No. 2025-058) disclosed by the Company
Guangdong Provincial Higher People’s Court.on November 22 2025 on the Shanghai Stock Exchange
website (www.sse.com.cn).(II). Circumstance where any litigation or arbitration was not disclosed in provisional
announcements or progressed subsequently
□ Applicable √ Not applicable
(III). Other information
√ Applicable □ Not applicable
1. Litigation related to former Dalian Hanxin Bio-Pharmaceuticals Co. Ltd.
According to the Share Transfer Agreement for the transfer of 100% of the shares of Dalian Hanxin
Bio-Pharmaceuticals Co. Ltd. (former name and now known as AIM Honesty Bio-Pharmaceuticals Co.Ltd. hereinafter referred to as “AIM Honesty”) by the Company’s wholly-owned subsidiary Lhasa
Meihua Bio-investment Holdings Co. Ltd. to Liaoning AIM Bio-vaccine Technology Group Co. Ltd.(former name and now known as AIM Vaccine Co. Ltd.) Lhasa Meihua Bio-investment Holdings Co.Ltd. undertakes that except for the liabilities specifically stated in the audit report and the financial
statements provided to the acquirer and the liabilities that occurred abnormally in the normal course of
business of AIM Honesty and its subsidiaries after the audit benchmark date and has been disclosed to
the acquirer AIM Honesty and its subsidiaries did not have any other debts or contingent debts. In the
event that it violates the undertaking it shall bear compensation liability for all the direct or indirect
economic losses suffered by other parties due to the violation. In accordance with the aforementioned
provision the Company has performed the obligation for partial compensation. For more details refer to
the Company’s previous annual reports.
88 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The Company’s subsidiary Lhasa Meihua Bio-investment Holdings Co. Ltd. (hereinafter referred
to as “Lhasa Meihua”) received the Notice on Repaying Debts from AIM Honesty on October 13 2020.According to (2015) DMSCZ No. 438 Civil Judgement issued by the Dalian Intermediate People’s
Court of Liaoning Kunming Sunwise Measure and Control Technology Co. Ltd. (hereinafter referred to
as “Sunwise Measure and Control”) used the right of use of Parcels 17-1-3 17-2 and five above-ground
properties located in the industrial base at Kunming Economic and Technological Development Zone
under its name to provide the guarantee for AIM Honesty to borrow loans from Bank of Jilin Co. Ltd.Dalian Branch under the Renminbi Borrowings Contract (2014 LJZ DL1114010272). The judicial sale
of the above land parcels and properties pledged was done on April 19 2018. The payment from the sale
will be used to repay the bank loans and Sunwise Measure and Control is entitled to seek compensation
from AIM Honesty.According to relevant agreements including the Agreement on the Transfer of the Shares of Dalian
Hanxin Bio-Pharmaceuticals Co. Ltd. between the Company’s subsidiary Lhasa Meihua and AIM
Vaccine Co. Ltd. Lhasa Meihua shall be responsible for solving the realization of the non-operating
creditor’s right and the settling of debts for AIM Honesty in respect of its former shareholder Tibet
Yiyuan Industry Co. Ltd. (hereinafter referred to as “Tibet Yiyuan”). Based on that AIM Honesty gave
the aforementioned Notice on Repaying Debts to Lhasa Meihua. According to relevant documents
including the share transfer agreement between Lhasa Meihua and AIM Honesty’s former shareholder
Tibet Yiyuan Tibet Yiyuan shall be responsible for realizing the non-operating creditor’s rights and
settling debts for AIM Honesty. Based on the aforementioned relevant agreements the related parties
have agreed that Tibet Yiyuan and its related parties shall inherit the aforementioned debts arising from
the right of recourse and the interest.In December 2021 according to the copy of the complaint the notice of appearance and other
relevant documents forwarded by AIM Honesty from the service of the Kunming Intermediate People’s
Court regarding the case of contractual dispute in which Kunming Sunwise Industry Co. Ltd. (holding
100% of the shares of Sunwise Measure and Control hereinafter referred to as “Sunshine Industry”)
filed a lawsuit against AIM Honesty and the third party Sunwise Measure and Control which was its
shareholder Sunwise Industry entered the bankruptcy and liquidation proceedings as ruled by the
Kunming Intermediate People’s Court on March 15 2019 and the court designated Yunnan Zhenxu
Law Firm as the administrator. The administrator for Sunwise Industry filed a lawsuit citing the fact that
Sunwise Measure and Control failed to claim compensation from AIM Honesty after performing the
guarantee obligation and demanded payment from AIM Honesty to Sunwise Measure and Control for
the receivables as well as the interest and the fund occupation fee. As previously stated in accordance
with the provisions of relevant agreements the Company has reached an agreement with all related
parties that Tibet Yiyuan and its related parties inherit all debts arising from the right of recourse and the
interest.On October 18 2022 the Kunming Intermediate People’s Court entered the following judgement: 1)
the Defendant AIM Honesty Bio-Pharmaceuticals Co. Ltd. repay 28967179.55 yuan to the third person
89 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Kunming Sunwise Measure and Control Technology Co. Ltd. within 10 days of the entry into force of
the judgement; 2) the Defendant AIM Honesty Bio-Pharmaceuticals Co. Ltd. pay the fund occupation
fee to the third person Kunming Sunwise Measure and Control Technology Co. Ltd. within 10 days of
the entry into force of the judgement using 28967179.55 as the basis for the period from August 17
2021 until the date of payment based on the loan prime rate; and 3) other claims made by the Plaintiff
Kunming Sunwise Industry Co. Ltd. be rejected.On June 30 2023 the Yunnan High People’s Court issued a judgment with Document No. (2023)
YMZ No. 324 ruling to reject the appeal and uphold the original judgment. AIM Honesty has applied
for a retrial with the Supreme People’s Court in respect of the above dispute. On March 26 2024 the
Supreme People’s Court issued Civil Ruling No. (2023) ZGFMZ No. 1737 deciding that: (1) the case
would be retried by the Supreme People’s Court; and (2) the enforcement of the original judgment
would be suspended during the retrial. On October 10 2024 the case was heard by the Supreme
People’s Court.On August 22 2025 the Supreme People’s Court issued a judgment with the reference number
[(2024) Supreme Court Civil Rehearing No. 209] with the following outcome: 1) To set aside the civil
judgment of the Yunnan Highe People’s Court (2023) Yun Min Zhong No. 324; 2) To set aside the civil
judgment of the Kunming Intermediate People’s Court of Yunnan Province (2021) Yun 01 Min Chu No.
4275; 3) AIM Honesty shall repay 3342226.4 yuan to Sunwise Measure and Control Technology Co.
Ltd. within 10 days from the effective date of this judgment along with fund occupation fees calculated
on the principal amount of 3342226.4 yuan (calculated from August 17 2021 until the date of full
repayment based on the Loan Market Quote Rate published by the National Interbank Funding Center);
4) Dismiss the other claims brought by Sunwise Industry Co. Ltd..
The aforementioned amounts totaling RMB 3819514.65 were paid in full in November 2025. The
difference of RMB 28618647.27 from the previously accrued amount was recognized as non-operating
income for the current period.
2. Litigation related to Shandong Fufeng Fermentation Co. Ltd.
Shandong Fufeng Fermentation Co. Ltd. (“Shandong Fufeng”) filed a lawsuit against the Company
and its subsidiary Xinjiang Meihua over a dispute concerning trade secrets related to xanthan gum
production. Through multiple trials of the court under the auspices of the enforcement judge of the Jinan
Intermediate People’s Court in early March 2025 the Company and its wholly-owned subsidiary
Xinjiang Meihua reached an enforcement settlement agreement with Shandong Fufeng regarding the
trade secrets for the production of xanthan gum involved in the case. For details please refer to the
relevant announcements issued by the Company.
3. Litigation related to Ajinomoto Co. Inc. of Japan
Ajinomoto Co. Inc. of Japan has filed a lawsuit against the Company and its wholly-owned
subsidiaries—Tongliao Meihua Xinjiang Meihua and Jilin Meihua—alleging patent infringement. The
Guangdong Highe People’s Court has accepted the case. For further details please refer to the relevant
announcements issued by the Company.
90 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
As of the date of this report the case has not yet been heard in court. The Company is actively
defending itself in accordance with the law and taking necessary legal measures to resolutely safeguard
the legitimate rights and interests of the Company and its shareholders. The Company will continue to
monitor the progress of the case and fulfill its information disclosure obligations in a timely manner.X. Alleged Violations of and Punishments on the Listed Company as well as its Directors Officers
Controlling Shareholder and Actual Controller and the Rectifications
√ Applicable□ Not applicable
On November 7 2025 the Company received written notice from its controlling shareholder Mr.Meng Qingshan stating that he had received a “Criminal Judgment” issued by the Langfang
Intermediate People’s Court of Hebei Province which ruled as follows: The defendant Meng Qingshan
was found guilty of manipulating the securities market and sentenced to three years’ imprisonment
suspended for five years along with a fine (the probationary period shall be calculated from the date the
judgment takes effect and the fine shall be offset by the administrative penalty fines already paid).Mr. Meng Qingshan has not held any position with the Company since his retirement in January
2017. The aforementioned matter concerns Mr. Meng Qingshan personally and has no relation to the
Company. Currently the Company’s production and business operations are proceeding normally. This
matter will not affect the Company’s equity structure corporate governance or production and business
operations.XI. Credit Statuses of the Company as well as its Controlling Shareholder and Actual Controller
during the Reporting Period
□ Applicable √ Not applicable
XII. Significant Related-Party Transactions
(I). Related-party transactions related to day-to-day operations
1. Matters that were disclosed in provisional announcements and did not progress or change
subsequently
□ Applicable √ Not applicable
2. Matters that were disclosed in provisional announcements but progressed or changed
subsequently
√ Applicable□ Not applicable
1) Related-party transactions concerning the purchase of commodities or the receiving of labor services
Content of
Amount incurred in the Amount incurred in the
Related party related-party
current period (yuan) previous period (yuan)
transaction
Tongliao Desheng Bio-tech Co. Ltd. Goods 75113020.43 75539223.56
Tongliao Desheng Bio-tech Co. Ltd. Services 994582.93 26489.59
Total 76107603.36 75565713.15
2) Related-party leases
Where the Company is the lessor
91 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Rental income Rental income recognized
Name of lessee Type of leased asset recognized in the current in the previous period
period (yuan) (yuan)
Tongliao Desheng Bio-tech Co. Ltd. Housing 1505861.10 2739061.65
Total 1505861.10 2739061.65
3. Significant related-party transactions not previously disclosed in provisional announcements
□ Applicable √ Not applicable
(II). Related-party transactions concerning the purchase or sales of assets or shares
1. Matters that were disclosed in provisional announcements and did not progress or change
subsequently
□ Applicable √ Not applicable
2. Matters that were disclosed in provisional announcements but progressed or changed
subsequently
□ Applicable √ Not applicable
3. Significant related-party transactions not previously disclosed in provisional announcements
□ Applicable√ Not applicable
4. Where it involves agreements on performance targets the Company should disclose the
accomplishment of performance targets during the Reporting Period
□ Applicable √ Not applicable
(III). Significant related-party transactions concerning joint outbound investment
1. Matters that were disclosed in provisional announcements and did not progress or change
subsequently
□ Applicable √ Not applicable
2. Matters that were disclosed in provisional announcements but progressed or changed
subsequently
□ Applicable√ Not applicable
3. Significant related-party transactions not previously disclosed in provisional announcements
□ Applicable √ Not applicable
(IV). Related-party dealings of creditor’s right and debts
1. Matters that were disclosed in provisional announcements and did not progress or change
subsequently
□ Applicable √ Not applicable
2. Matters that were disclosed in provisional announcements but progressed or changed
subsequently
□ Applicable √ Not applicable
3. Significant related-party transactions not previously disclosed in provisional announcements
□ Applicable √ Not applicable
92 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(V). Finance business between the Company and related finance companies the Company’s
holding finance companies and related parties
□ Applicable √ Not applicable
(VI). Miscellaneous
□ Applicable √ Not applicable
XIII. Major Contracts and Performance
(I). Trusteeship contracting and lease matters
1. Trusteeship
□ Applicable √ Not applicable
2. Contracting
□ Applicable √ Not applicable
3. Leases
□ Applicable √ Not applicable
93 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(II). Guarantees
√Applicable □ Not applicable
Unit: Yuan Currency: RMB
The Company’s external guarantees (excluding guarantees for subsidiaries)
Total amount of guarantees issued during the reporting period (excluding guarantees for subsidiaries)
Total balance of guarantees at the end of the Reporting Period (A) (excluding guarantees for subsidiaries)
The Company’s and its subsidiaries’ guarantee for subsidiaries
Total amount of guarantees incurred during the Reporting Period 1658608602.81
Total balance of guarantees for subsidiaries at the end of the Reporting Period (B) 909608602.81
The Company’s total guarantees (including guarantees for subsidiaries)
Total guarantees (A+B) 909608602.81
Proportion of total guarantees in the Company’s net assets (%) 5.56
(III). Cash asset management through trusteeship
1. Entrusted financing
(1). Overview of entrusted financing
√ Applicable □ Not applicable
Unit: ‘0000 yuan Currency: RMB
Type Risk Level Balance undue Overdue balance not recovered
Bank wealth management products R1 32313.98
Bank wealth management products R2 82267.01
Brokerage wealth management products R1 7200.00
Brokerage wealth management products R2 2000.00
Brokerage wealth management products R3 2800.00
Trust wealth management products R2 7800.00
Trust wealth management products R3 1200.00
Trust wealth management products R4 4165.00
94 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Others R3 2000.00
Other information
□ Applicable √ Not applicable
(2). Single entrusted financing
√ Applicable□ Not applicable
Unit: ‘0000 yuan Currency: RMB
Overdue
Risk Investment Are there any Actual gains Balance
Trustee Type Amount Start Date End Date balance not
Level Allocation restrictions or losses undue
recovered
Cash-equivalent
Redemption
First Capital Fund of Funds assets quantitative
R3 2000 2025/4/10 available No 2000
Securities Co. Ltd. (FOF) funds and arbitrage
monthly
funds
Other information
□ Applicable √ Not applicable
(3). Impairment provisions for entrusted financing
□ Applicable √ Not applicable
2. Entrusted loans
(1). Overview of entrusted loans
□ Applicable √ Not applicable
Other information
□ Applicable √ Not applicable
(2). Single entrusted loans
□ Applicable √ Not applicable
Other information
□ Applicable √ Not applicable
(3). Impairment provisions for entrusted loans
□ Applicable √ Not applicable
95 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
3. Other information
□ Applicable √ Not applicable
(IV). Other major contracts
□ Applicable √ Not applicable
96 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
XIV. Progress of the use of raised funds
□ Applicable √ Not applicable
XV. Other Important Matters That Have a Major Effect on Investors’ Value Judgement and
Investment Decision-Making
√ Applicable□ Not applicable
1. Progress of share repurchases
On December 29 2025 the Company convened the first meeting of its 11th Board of Directors at
which the “Proposal on the Repurchase of Company Shares via Centralized Auction Trading” was
reviewed and approved. The Board agreed that the Company may use its own funds to repurchase its
shares via centralized auction trading for the purpose of subsequently implementing an employee stock
ownership plan or equity incentive program. The total repurchase amount shall be no less than RMB 30
million (inclusive) and no more than RMB 50 million (inclusive) with a repurchase price not exceeding
RMB 15 per share. The repurchase period shall not exceed 12 months from the date the Board of
Directors approved this share repurchase plan (i.e. December 29 2025 to December 28 2026). For
specific details please refer to the relevant announcement disclosed by the Company on the Shanghai
Stock Exchange website (www.sse.com.cn).As of the end of March 2026 the Company has not yet conducted any share repurchases and will
implement this repurchase plan at an appropriate time based on market conditions.
2. Implementation Status of the Management Shareholding Increase Plan
A total of 76 members including certain directors officers and other key management personnel
(or technical leaders) of the Company driven by their confidence in the Company’s future prospects and
recognition of its long-term investment value and with the aim of maintaining stability in the capital
markets and boosting investor confidence plan to increase their holdings of the Company’s shares
through purchases on the secondary market for a period not exceeding 12 months starting from January
14 2026. The total amount of shares to be purchased is expected to be no less than RMB 303.75 million
(including transaction costs) and no more than RMB 350.15 million (including transaction costs). They
have committed not to sell any of their existing shares in the Company during the implementation of this
share purchase plan and not to sell the shares acquired through this plan by any means for a period of 24
months following the full completion of the plan and the Company’s lawful public announcementthereof. For specific details please refer to the “Announcement on the Share Purchase Plan by theCompany’s Directors Officers and Other Key Management Personnel” (Announcement No. 2026-003)
disclosed by the Company on January 15 2026 on the Shanghai Stock Exchange website
(www.sse.com.cn).
3. Sale of the Thailand Plant
In July 2025 the Company successfully completed the acquisition of Kyowa Hakko’s food and
pharmaceutical amino acid and HMO businesses thereby acquiring multiple overseas production
facilities including the one in Thailand. To focus on core business development and optimize resource
allocation and following a careful evaluation the Company decided to sell 100% of the equity in the
97 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Thai factory to Novonesis a globally renowned biotechnology company in order to further optimize its
global production capacity layout and concentrate on the business of high-end amino acid raw materials
produced through synthetic biology fermentation. The transaction was completed in early April 2026.Following the completion of the transaction the Company no longer holds any equity in the Thai
company.Novonesis is a global biotechnology giant headquartered in Denmark. Formed through the official
merger of Novozymes and Chr. Hansen in January 2024 it is one of the world’s largest suppliers of
industrial enzymes and microbial solutions. This successful transaction has laid a solid foundation for
broader collaboration between these two leading companies in the biotechnology sector. It will enable
both parties to achieve mutual benefits based on trust and cooperation jointly driving the high-quality
development of the global biotechnology industry.
98 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Section 6 Share Changes and Shareholders
I. Changes in Share Capital
(I). Table of share changes
1. Table of share changes
Unit: share
Before the change Increase/decrease (+ -) After the change
Bo
New Shares
Prop nu Prop
share converte
ortio s ortio
Quantity s d from Others Subtotal Quantity
n sh n
issue reserve
(%) are (%)
d funds
s
Restricted shares
1. Shares held by the state
2. Shares held by state-owned
legal persons
3. Shares held by other
domestic investors
including: shares held by
domestic non-state-owned
legal persons
shares held by
domestic natural persons
4. Shares held by foreign
investors
including: shares held by
foreign legal persons
shares held by foreign
natural persons
II. Non-restricted outstanding
2852788750100-48547100-485471002804241650100
shares
RMB ordinary shares 2852788750 100 -48547100 -48547100 2804241650 100
2. Domestically listed foreign
shares
3. Overseas listed foreign
shares
4. Others
III. Total shares 2852788750 100 -48547100 -48547100 2804241650 100
99 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
2. Explanation of Changes in Share Capital
√ Applicable□ Not applicable
The Company held the 13th meeting of the tenth session of the Board of Directors and the second
extraordinary general meeting of shareholders in 2024 on September 23 2024 and October 11 2024
respectively at which the Proposal on Repurchasing the Company’s Shares by Means of Centralized
Bidding was reviewed and approved with the repurchased shares to be canceled for the purpose of
reducing the registered capital. On October 12 2024 the Company disclosed the Repurchase Report on
the Repurchase of Shares by Means of Centralized Bidding and carried out the first repurchase on
October 23 2024. For details please refer to the relevant announcements disclosed on the website of the
Shanghai Stock Exchange (www.sse.com.cn).On September 4 2025 the Company released the Announcement on the Implementation Results of
Share Repurchase and Changes in Share Capital (Announcement No. 2025-054). The Company had
completed the share repurchase plan having repurchased a total of 48547100 shares accounting for
1.70% of the total share capital of 2852788750 shares at the time. The average repurchase price was
RMB 10.13 per share and the total amount paid was RMB 492.017 million (excluding transaction fees).The repurchased shares were canceled on September 4 2025 at China Securities Depository and
Clearing Corporation Limited and the total share capital of the Company changed from 2852788750
shares to 2804241650 shares. On March 18 2026 the Company completed the relevant industrial and
commercial registration procedures and obtained a renewed business license issued by the Market
Supervision Administration of the Tibet Autonomous Region.
3. Effect of share changes on financial indicators for the past year and most recent reporting
period including earnings per share and net assets per share (if applicable)
□ Applicable √ Not applicable
4. Other information that the Company deems necessary to disclose or as required by the
securities regulatory body
□ Applicable √ Not applicable
(II). Changes in restricted sales
□ Applicable √ Not applicable
II. Issue and Listing of Securities
(I). Issue of securities as of the Reporting Period
√ Applicable□ Not applicable
Unit: share Currency: RMB
Type of shares and Issue price Quantity
Date of End date of
their derivative Date of issue (or interest Issued quantity approved
listing trading
securities rate) for listing
Type of ordinary share
Ordinary A-shares 2013-3-29 6.27 399990000 2014-3-30 399990000
Bonds (including enterprise bonds debentures and non-financial business debt financing instruments)
100 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Debenture 2015-7-31 4.47% 15000000000
Debenture 2015-10-31 4.27% 15000000000
Explanation of the issue of securities as of the Reporting Period (for bonds with different interests rates
during the term please provide explanation separately):
□ Applicable √ Not applicable
(II). Changes in the Company’s total shares shareholder structure and asset and liability
structure
√ Applicable□ Not applicable
Upon the Company’s application the Company canceled 48547100 repurchased shares with
China Securities Depository and Clearing Corporation Limited on September 4 2025. Consequently the
Company’s total issued share capital was reduced from 2852788750 shares to 2804241650 shares.(III). Shares Held by Internal Staff
□ Applicable √ Not applicable
III. Overview of Shareholders and Actual Controller
(I). Total number of shareholders
Total number of ordinary shareholders as of the end of the
71751
Reporting Period
Total number of ordinary shareholders as of the end of the
month immediately prior to the disclosure date of the 78445
annual report
(II). Shares held by the top ten shareholders and the top ten holders of tradable shares (or holders
of non-restricted shares) as of the end of the Reporting Period
Unit: Share
Shares held by the top ten shareholders (excluding the shares lent through refinancing)
Number Pledged
Number of
Increase/decrease of marked or
Shareholder’s name (full shares held Proportion Nature of
during the restricted frozen shares
name) at the end of (%) shareholder
Reporting Period shares Share Share
the period
held status status
Domestic
Meng Qingshan 854103033 30.46 None natural
person
Hong Kong Securities
113522685 4.05 None Other
Clearing Company Limited
Domestic
Wang Aijun 72452774 2.58 None natural
person
101 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Domestic
Liang Yubo 54474218 1.94 None natural
person
Domestic
Hu Jijun 52678128 1.88 None natural
person
China Construction Bank
Corporation –
Huatai-PineBridge CSI 47921706 1.71 None Other
Dividend Low Volatility
ETF
National Social Security
38950999 1.39 None Other
Fund Portfolio 406
Zhejiang Commercial
Bank Co. Ltd. – Guotai
38159321 1.36 None Other
CSI Livestock and Poultry
Farming ETF
Agricultural Bank of China
Limited – Southern S&P
China A-Share Large-Cap 36931980 1.32 None Other
Dividend Low Volatility
50 ETF
Beijing Royal Fortune Co.Ltd. -- Royal Fortune
Huichen Strategic 33312407 1.19 None Other
Investment Private
Securities Investment Fund
Shares held by the top ten holders of non-restricted shares (excluding the shares lent through refinancing)
Quantity of non-restricted tradable Type and quantity of shares
Name of shareholder
shares held Type Type
RMB
Meng Qingshan 854103033 854103033
ordinary share
Hong Kong Securities Clearing Company RMB
113522685113522685
Limited ordinary share
RMB
Wang Aijun 72452774 72452774
ordinary share
RMB
Liang Yubo 54474218 54474218
ordinary share
RMB
Hu Jijun 52678128 52678128
ordinary share
China Construction Bank Corporation –
RMB
Huatai-PineBridge CSI Dividend Low 47921706 47921706
ordinary share
Volatility ETF
RMB
National Social Security Fund Portfolio 406 38950999 38950999
ordinary share
102 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Zhejiang Commercial Bank Co. Ltd. – Guotai RMB
3815932138159321
CSI Livestock and Poultry Farming ETF ordinary share
Agricultural Bank of China Limited – Southern
RMB
S&P China A-Share Large-Cap Dividend Low 36931980 36931980
ordinary share
Volatility 50 ETF
Beijing Royal Fortune Co. Ltd. -- Royal
RMB
Fortune Huichen Strategic Investment Private 33312407 33312407
ordinary share
Securities Investment Fund
Information on the Repurchase Account
None
Among the Top Ten Shareholders
Among the above shareholders Meng Qingshan Hu Jijun Wang
Information of voting trust voting trusteeship Aijun and Liang Yubo have no voting trust voting trusteeship and
and abstention of voting rights for the above abstention of voting rights. The information of voting trust voting
shareholders trusteeship and abstention of voting rights for other shareholders is not
known.Information of relationships or acting in concert Among the above shareholders Meng Qingshan and Wang Aijun are
of the above shareholders persons acting in concert.Information of preferred shareholders with
restored voting rights and the number of shares None
held by them
Participation of shareholders holding 5% or more top ten shareholders and top ten holders of
unrestricted outstanding shares in securities lending through the stock lending and borrowing (SLB)
□ Applicable √ Not applicable
Changes in the Top Ten Shareholders and Top Ten Holders of Unrestricted Outstanding Shares Due to
Stock Lending and Borrowing (SLB) Activities
□ Applicable √ Not applicable
Number of shares held by the top ten holders of restricted shares and the restrictions
□ Applicable √ Not applicable
(III). Strategic investors or general legal persons becoming top ten holders due to the allotment of
new shares
□ Applicable √ Not applicable
IV. Information of Controlling Shareholder and Actual Controller
(I). Information of controlling shareholder
1. Legal person
□ Applicable √ Not applicable
2. Natural person
√ Applicable□ Not applicable
Name Meng Qingshan
Nationality Chinese
Whether a resident status in other countries No
103 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
or regions is obtained
Major occupation and position He served as Chairman of the Company from March 2009 to January 2017.
3. Explanation of circumstance where the Company does not have a controlling shareholder
□ Applicable √ Not applicable
4. Explanation of changes in controlling shareholder during the Reporting Period
□ Applicable √ Not applicable
5. Diagram of the property right and control relationship between the Company and its
controlling shareholder
√ Applicable□ Not applicable
Meng Qingshan
Meihua Holdings Group Co. Ltd.(II). Information of actual controller
1. Legal person
□ Applicable √ Not applicable
2. Natural person
√ Applicable□ Not applicable
Name Meng Qingshan
Nationality Chinese
Whether a resident status in other countries or
No
regions is obtained
He served as Chairman of the Company from March 2009 to
Major occupation and position
January 2017.Information of any domestic or foreign holding listed
None
company during the past 10 years
Name Wang Aijun
Nationality Chinese
Whether a resident status in other countries or
No
regions is obtained
She has served as Chairperson of the Company since January 16
Major occupation and position
2017.
Information of any domestic or foreign holding listed
None
company during the past 10 years
Name He Jun
Nationality Chinese
104 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Whether a resident status in other countries or
No
regions is obtained
He served as Director and General Manager of the Company
Major occupation and position
from January 16 2017 as of now.Information of any domestic or foreign holding listed
None
company during the past 10 years
Name Wang Ailing
Nationality Chinese
Whether a resident status in other countries or
No
regions is obtained
She served as Senior Deputy General Manager of the Company
Major occupation and position
from December 2025 as of now.Information of any domestic or foreign holding listed
None
company during the past 10 years
Name Wang Aimin
Nationality Chinese
Whether a resident status in other countries or
No
regions is obtained
He has served as Chairperson of the Tibet Meihua Public Welfare
Major occupation and position
Foundation since 2018.Information of any domestic or foreign holding listed
None
company during the past 10 years
Name Wang Aidi
Nationality Chinese
Whether a resident status in other countries or
No
regions is obtained
She has served as head of the Company's Treasury Department
Major occupation and position
since 2020.Information of any domestic or foreign holding listed
None
company during the past 10 years
3. Explanation of circumstance where the Company does not have an actual controller
□ Applicable √ Not applicable
4. Explanation of changes in the Company’s control during the Reporting Period
□ Applicable √ Not applicable
5. Diagram of the property right and control relationship between the Company and its actual
controller
√ Applicable□ Not applicable
105 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Meng Qingshan and the persons acting in concert
(Meng Qingshan Wang Aijun He Jun，Wang Aimin Wang Ailing andWang Aidi)
Meihua Holdings Group Co. Ltd.
6. Actual controller controlling the Company through trust or other asset management methods
□ Applicable √ Not applicable
(III). Other information of controlling shareholder and actual controller
√ Applicable□ Not applicable
Wang Aijun He Jun Wang Ailing Wang Aimin Wang Aidi and the controlling shareholder Meng
Qingshan are acting in concert
V. Total number of pledged shares of the Company’s controlling shareholder or top shareholder
and the persons acting in concert accounting for more than 80% of the Company’s total shares
□ Applicable √ Not applicable
VI. Corporate shareholders holding more than 10% of the shares
□ Applicable √ Not applicable
VII. Explanation of decrease of holding of shares due to share restrictions
□ Applicable √ Not applicable
VIII. Implementation of share repurchase during the reporting period
√ Applicable□ Not applicable
Unit: Yuan Currency: RMB
Name of the share repurchase plan Share Repurchase Plan of Meihua Holdings Group Co. Ltd.Disclosure date of the share repurchase
September 24 2024
plan
Number of shares planned to repurchase 0.88–1.46% (based on the Company’s then-current total issued shares of
and the proportion in the total shares (%) 2852788750)
Planned amount of repurchase 300 million yuan - 500 million yuan
Less than 12 months from the date the repurchase plan is approved at the
Planned Duration of Repurchase
Company’s general meeting
Purpose of repurchase Cancellation - to reduce the registered capital
Repurchased quantity (share) 48547100
Proportion of repurchased shares in the
underlying shares involved in the share Not applicable
incentive plan (%) (if applicable)
Progress in Reducing Shareholding
Not applicable
Through Centralized Bidding
106 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Name of the share repurchase plan Share Repurchase Plan of Meihua Holdings Group Co. Ltd.Disclosure date of the share repurchase
December 30 2025
plan
Number of shares planned to repurchase 0.08~0.12 (based on the Company’s current total issued share capital of
and the proportion in the total shares (%) 2804241650 shares)
Planned amount of repurchase 350 million yuan - 500 million yuan
Less than 12 months from the date the repurchase plan is approved at the
Planned Duration of Repurchase
Company’s Board of Directors
Purpose of repurchase To be used for the subsequent implementation of an employee stock
ownership plan or equity incentive program. If the Company fails to use all
repurchased shares within 36 months of the completion of the share
repurchase the unused repurchased shares will be canceled.Repurchased quantity (share) 0
Proportion of repurchased shares in the
underlying shares involved in the share Not applicable
incentive plan (%) (if applicable)
Progress in Reducing Shareholding
Not applicable
Through Centralized Bidding
IX. Information on Preferred Shares
□ Applicable √ Not applicable
107 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Section 7 Information on Securities
I. Corporate Bonds (including Enterprise Bonds) and Non-Financial Corporate Debt Financing
Instruments
□ Applicable √ Not applicable
II. Information of Convertible Debentures
□ Applicable √ Not applicable
Section 8 Financial Report
I. Audit Report
√ Applicable □ Not applicable
RSMSZ No. [2026] 518Z0527
To all shareholders of Meihua Holdings Group Co. Ltd.:
I. Audit Opinion
We have audited the financial statements of Meihua Holdings Group Co. Ltd. (hereinafter referred
to as "Meihua Bio") including the consolidated and parent Company’s balance sheets as of December
31 2025 as well as the consolidated and parent Company’s income statements the consolidated and
parent Company’s cash flow statements the consolidated and parent Company’s statement of changes in
equity and related notes to the financial statements for the year 2025.We believe that the accompanying financial statements have been formulated in accordance with
the Accounting Standards for Business Enterprises in all material respects and present fairly the
consolidated and parent Company’s financial position of Meihua Bio as of December 31 2025 and the
consolidated and parent Company’s operating results and cash flows for the year 2025.II. Basis for Audit Opinion
We conducted our audit in accordance with the provisions specified in the Auditing Standards for
Certified Public Accountants of China. The section "Responsibilities of Certified Public Accountants for
the Audit of Financial Statements" of the audit report further explains our responsibilities under these
standards. In accordance with the China Code of Ethics for Certified Public Accountants and the China
Independence Standards for Certified Public Accountants we are independent of Meihua Bio and have
complied with the provisions of the Independence Standards applicable to the audit of financial
statements of public interest entities and have fulfilled our other professional ethics 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
108 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
our audit of the financial statements for 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
provide a separate opinion on these matters.(I) Revenue recognition
1. Matter Description
Meihua Bio is primarily engaged in the production of amino acid products with operating revenue
for the year 2025 amounting to RMB 2420867.51 ten thousand. For accounting policies related to
revenue please refer to Note III 27. Revenue Recognition Principles and Measurement Methods of the
consolidated financial statements and for the book amount of operating revenue please refer to Note V
49. Operating Revenue and Operating Costs of the consolidated financial statements. As revenue is one
of the key performance indicators for Meihua Bio there is inherent risk that the Company’s management
(hereinafter referred to as “management”) may manipulate revenue recognition to achieve specific
targets or expectations. Therefore we identified revenue recognition as a key audit matter.
2. Audit Response
The procedures we implement for revenue recognition primarily include:
(1) Understanding assessing and testing the management's internal control over the recognition of
operating revenues;
(2) Selecting samples to examine sales contracts and conducting interviews with the management to
identify contract terms related to the transfer of control of goods and to evaluate whether revenue
recognition policies comply with the Accounting Standards for Business Enterprises;
(3) Selecting samples to examine supporting documents related to the recognition of revenue from
the main businesses including sales contracts sales invoices shipping documents export customs
declaration forms and bank payment connection records to assess whether revenue recognition
complies with the Company's accounting policies for revenue recognition;
(4) Performing independent confirmation procedures for sales revenue from significant customers
to confirm the authenticity and completeness of revenue;
(5) For sales revenue cutoff testing before and after the balance sheet date select samples and in
conjunction with goods shipment orders export customs declaration forms and other supporting
documents evaluate whether the revenue has been recorded in the appropriate accounting period.
(6) Conducting examinations of sales revenue after the balance sheet date to identify whether there
are instances of revenue reversal or substantial sales returns;
(7) Perform sample checks on post-period payments.
Based on the results of these procedures we did not identify any irregularities in revenue
recognition.(II) Business Combinations
1. Matter Description
In 2025 Meihua Bio completed a business combination under non-common control involving
Kyowa’s food amino acids pharmaceutical amino acids and human milk oligosaccharides (HMO)
109 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
businesses and included them in the scope of consolidation for the 2025 financial statements. The
consolidated financial statements recognized identifiable assets of RMB 1779029000 identifiable
liabilities of RMB 183139400 negative goodwill which was recognized as non-operating income of
RMB 831441000. For accounting policies related to the business combination refer to Note III 6.(2)
“Business Combinations Under Non-Common Control” in the Notes to the Consolidated Financial
Statements. For the book amount of identifiable assets identifiable liabilities and negative goodwill
refer to Note VII 1. “Business Combinations Under Non-Common Control.” With the assistance of
external appraisers management assessed the fair value of the identifiable assets and liabilities of
Kyowa’s food amino acid pharmaceutical amino acid and human milk oligosaccharide (HMO)
businesses as of the acquisition date. The process of determining the fair value of identifiable assets and
liabilities involved judgments regarding the replacement cost and depreciation rate of identifiable assets.Because the process of determining the fair value of identifiable assets and liabilities involves significant
judgments regarding relevant parameters and key assumptions and because the accounting treatment of
the business combination of Kyowa Hakko’s food amino acids pharmaceutical amino acids and human
milk oligosaccharides (HMO) businesses has a significant impact on the financial statements we have
identified this matter as a key audit matter.With regard to the accounting treatment for the consolidation of Kyowa’s food amino acids
pharmaceutical amino acids and human milk oligosaccharides (HMO) businesses the audit procedures
we performed primarily included:
(1) Obtaining and reviewing relevant documents such as the share purchase agreement board
resolutions related to the share acquisition and payment vouchers for the purchase price to verify the
specific details of the transaction;
(2) Understanding the professional qualifications of the external valuation experts engaged by
management and assessing their independence and competence;
(3) With the assistance of internal valuation experts assessing the reasonableness of the valuation
approach and methods as well as the replacement cost and depreciation rates of the relevant assets;
(4) Reviewing the calculation process used by management to recognize negative goodwill based
on the valuation results of identifiable assets and liabilities and verifying the business combination
accounting treatment as of the acquisition date.Based on the procedures performed we found no irregularities in the business combination.IV. Other Information
The management is responsible for other information. Other information includes the information
included in Meihua Bio's 2025 annual report but excludes the financial statements and our audit report.Our audit opinion on the financial statements does not cover other information and we do not
express any form of assurance conclusion on other information.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 process or appears to be materially
110 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
misstated.Based on the work we have performed if we determine that there is a material misstatement of
other information we are required to report that fact. In this regard we have no matters to report.V. Responsibilities of the Management and Governance for Financial Statements
The management is responsible for preparing financial statements in accordance with the
Accounting Standards for Business Enterprises to ensure fair presentation and for designing
implementing and maintaining necessary internal controls to prevent material misstatements in the
financial statements arising from 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 matters related to going concern (if applicable) and
applying the going concern assumption unless the management intends to liquidate the Company cease
operations or has no realistic alternative.The governance is responsible for overseeing the financial reporting process of Meihua Bio.VI. Responsibilities of Certified Public Accountants for the Audit of Financial Statements
Our objective is to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatements arising from fraud or error and to issue an audit report containing
audit opinion. Reasonable assurance is a high level of assurance but it does not guarantee that an audit
conducted in accordance with the auditing standards will always detect a material misstatement when it
exists. Misstatements can arise from either fraud or error and it is reasonably expected that individual or
aggregated misstatements may affect the economic decisions made by users based on the financial
statements such misstatements are generally considered material.During the audit in accordance with the auditing standards we exercise professional judgment and
maintain professional skepticism. Additionally we perform the following procedures:
(1) Identify and assess the risks of material misstatement of the financial statements due to fraud or
error design and implement audit procedures to address these risks and obtain sufficient and
appropriate audit evidence as the basis for our audit opinion. The risk of failing to detect a material
misstatement due to fraud is higher than the risk of failing to detect one due to error as fraud may
involve collusion forgery intentional omissions misrepresentations or override of internal controls.
(2) Understand the internal controls relevant to the audit in order to design appropriate audit
procedures.
(3) Evaluate the appropriateness of the accounting policies selected by the management and the
reasonableness of accounting estimates and related disclosures.
(4) Come to a conclusion regarding the appropriateness of the management's utilization of the going
concern assumption. Additionally based on the audit evidence obtained conclude whether significant
uncertainties exist regarding matters or conditions that may cast significant doubt on the Company's
ability to continue as a going concern. If we conclude that there is a significant uncertainty the auditing
standards require us to draw attention to users of the report in our audit report to the relevant disclosures
in the financial statements; if the disclosures are inadequate we should issue a qualified opinion. We
111 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
come to our conclusion based on information available up to the date of our audit report. However
future events or conditions may result in the Company being unable to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether
they fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of Meihua
Bio’s entities or business activities to express an opinion on the financial statements. We are responsible
for directing supervising and performing the group audit and bear full responsibility for the audit
opinion.We communicate with the governance about matters related to the planned scope of the audit
timing schedule and significant audit findings including the communication of significant internal
control deficiencies identified during the audit.We also provide the governance with a statement regarding compliance with professional ethics
requirements related to independence and communicate to the governance all relationships and other
matters that might reasonably be seen as compromising our independence as well as relevant preventive
measures (if applicable).From the matters communicated with the governance we determine those matters that are of most
significance in the audit of the financial statements for the current period and therefore constitute the key
audit matters. We describe these matters in our audit report unless laws or regulations preclude public
disclosure about the matter or when in extremely rare circumstances we determine that a matter should
not be communicated in the audit report if doing so would reasonably be expected to outweigh the
public interest benefits of such communication.RSM China CPA LLP Chinese Certified Public Accountant:
(Special General Partnership) Gong Chenyan (Project Partner)
Beijing China Chinese Certified Public Accountant:
Li Qianqian
April 21 2026
112 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
II. Financial Statements
Consolidated Balance Sheet
December 31 2025
Prepared by: Meihua Holdings Group Co. Ltd.Unit: Yuan Currency: RMB
Items Notes December 31 2025 December 31 2024
Current Assets:
Monetary assets Note 1 4288171778.59 4561056193.96
Deposit reservation for balance
Placements with banks and other financial
institutions
Financial assets held for trading Note 2 1140377416.70 312033611.07
Derivative financial assets Note 3 2061300.00
Notes receivable Note 4 107542558.59 73697475.30
Accounts receivable Note 5 577371086.06 587909538.21
Receivables Financing Note 7 17978363.00 26723054.99
Prepaid accounts Note 8 171884582.59 220000861.75
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables Note 9 70477156.58 49292999.56
Including: Interest receivable 1575000.00 1575000.00
Dividend receivable 1395866.49 1395866.49
Financial assets purchased under agreements to
resell
Inventories Note 10 3021627701.05 2722279908.07
Among them: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year Note 12 75575625.48 182257027.81
Other current assets Note 13 214731083.57 164629398.67
Total Current Assets 9687798652.21 8899880069.39
Non-current Assets:
Loans and advances
Debt investments Note 14 10500000.00 10500000.00
Other debt investments
Long-term receivables Note 16 233244.15 601043.91
Long-term equity investments Note 17 4757925.21 6874939.88
Investments in other equity instruments Note 18 301966810.00 441294280.00
Other non-current financial assets Note 19 282005000.00
Investment properties
Fixed assets Note 21 12768478381.36 11338208623.56
Construction in progress Note 22 343559937.21 728524141.54
113 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Productive biological assets
Oil and gas assets
Right-of-use assets Note 25 4007321.13 8145892.35
Intangible assets Note 26 1557280758.01 1356812266.82
Among them: Data resources
Development expenditure
Among them: Data resources
Goodwill Note 27 11788911.79 11788911.79
Long-term prepaid expenses Note 28 133781048.89 122538549.51
Deferred income tax assets Note 29 126369580.18 101814807.93
Other non-current assets Note 30 683449155.24 782574484.98
Total Non-current Assets 16228178073.17 14909677942.27
Total Assets 25915976725.38 23809558011.66
Current Liabilities:
Short-term borrowings Note 32 1800136227.43 1734832631.06
Borrowings from central bank
Borrowings from banks and other financial
institutions
Financial liabilities held for trading
Derivative financial liabilities Note 34 297500.00
Notes payable Note 35 1777053969.91 1416217579.96
Accounts payable Note 36 1735184321.70 1441533026.72
Advances from customers
Contract liabilities Note 38 746778983.64 916515321.35
Financial assets sold for repurchase
Deposits from customers and interbank
Customer brokerage deposits
Securities underwriting brokerage deposits
Employee benefits payable Note 39 392494934.53 310133688.99
Taxes payable Note 40 194688876.58 280212685.60
Other payables Note 41 256349893.68 448115137.98
Including: Interest payable
Dividends payable 405000.00 409445.58
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year Note 43 281057349.33 802346793.78
Other current liabilities Note 44 79369933.52 88785123.74
Total Current Liabilities 7263114490.32 7438989489.18
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings Note 45 1918679223.83 1348094044.83
Bonds payable
Including: Preferred shares
114 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Perpetual bonds
Lease liabilities Note 47 1012966.64 1985140.84
Long-term payables Note 48 10500000.00 10500000.00
Long-term employee benefits payable Note 49 7474640.65
Estimated liabilities Note 50 32438161.92
Deferred income Note 51 367624988.38 381020645.51
Deferred income tax liabilities Note 29 21585228.45
Other non-current liabilities
Total Non-current Liabilities 2305291819.50 1795623221.55
Total Liabilities 9568406309.82 9234612710.73
Owners' Equity (Shareholders' Equity):
Paid-in capital (or stock) Note 53 2804241650.00 2852788750.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves Note 55 33749867.59 263154867.05
Less: Treasury stock Note 56 287771455.80
Other comprehensive income Note 57 -159220172.21 -55004961.46
Special reserves Note 58 4992619.68 4743615.67
Surplus reserves Note 59 1379865682.01 1426394375.00
General risk reserves
Undistributed profits Note 60 12283940768.49 10370640110.47
Total Owners' Equity (or Shareholders' Equity)
16347570415.5614574945300.93
Attributable to the Parent Company
Minority stockholder's interest
Total Owners' Equity (or Shareholders' Equity) 16347570415.56 14574945300.93
Total Liabilities and Owners' Equity (or
25915976725.3823809558011.66
Shareholders' Equity)
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing
Parent Company’s Balance Sheet
December 31 2025
Prepared by: Meihua Holdings Group Co. Ltd.Unit: Yuan Currency: RMB
Items Notes December 31 2025 December 31 2024
Current Assets:
Monetary assets 1748050527.78 1543851627.94
Financial assets held for trading 100005361.11 50491712.32
Derivative financial assets
Notes receivable 105165138.59 73047475.30
Accounts receivable Note 1 240104582.30 162553781.77
Receivables Financing 12103099.96 26575904.82
Prepaid accounts 450465635.15 475357.88
Other receivables Note 2 1311253600.04 1665966380.53
115 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Including: Interest receivable
Dividend receivable 850000000.00 1000000000.00
Inventories 55550241.64 65050433.21
Among them: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year 33099564.60 107257777.78
Other current assets 75941868.76 64765249.83
Total Current Assets 4131739619.93 3760035701.38
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables 811519697.93 849764271.75
Long-term equity investments Note 3 8069915728.14 7637915728.14
Investments in other equity instruments 157000000.00 157000000.00
Other non-current financial assets
Investment properties
Fixed assets 243075825.89 220263004.92
Construction in progress 10035634.61 1158006.34
Productive biological assets
Oil and gas assets
Right-of-use assets 2474935.75 5683180.01
Intangible assets 28405655.84 29657849.39
Among them: Data resources
Development expenditure
Among them: Data resources
Goodwill
Long-term prepaid expenses 7013493.09 7442964.64
Deferred income tax assets 30483502.04 24003415.50
Other non-current assets 504985170.13 477168855.60
Total Non-current Assets 9864909643.42 9410057276.29
Total Assets 13996649263.35 13170092977.67
Current Liabilities:
Short-term borrowings 446161713.00 946819589.89
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 2768836932.16 1801200152.53
Accounts payable 1653949501.23 1546027555.51
Advances from customers
Contract liabilities 484101924.45 686582514.27
Employee benefits payable 189707400.94 122576747.39
Taxes payable 41369234.14 17341488.83
Other payables 93696559.66 94683082.66
116 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Including: Interest payable
Dividends payable 405000.00 409445.58
Liabilities held for sale
Non-current liabilities due within one year 242728429.22 468965560.37
Other current liabilities 155747059.16 147284751.55
Total Current Liabilities 6076298753.96 5831481443.00
Non-current Liabilities:
Long-term borrowings 620700000.00 504900000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 331053.08 459482.24
Long-term payables 195270525.31
Long-term employee benefits payable
Estimated liabilities
Deferred income
Deferred income tax liabilities 833818.64
Other non-current liabilities
Total Non-current Liabilities 816301578.39 506193300.88
Total Liabilities 6892600332.35 6337674743.88
Owners' Equity (Shareholders' Equity):
Paid-in capital (or stock) 2804241650.00 2852788750.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 229404999.46
Minus:Treasury stock 287771455.80
Other comprehensive income
Special reserves
Surplus reserves 1379865682.01 1426394375.00
Undistributed profits 2919941598.99 2611601565.13
Total Owners' Equity (or Shareholders' Equity) 7104048931.00 6832418233.79
Total Liabilities and Owners' Equity (or
13996649263.3513170092977.67
Shareholders' Equity)
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing
117 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Consolidated Income Statement
January to December 2025
Unit: Yuan Currency: RMB
Items Notes 2025 2024
I. Total Operating Revenue 24208675106.70 25069288294.62
Including: Operating revenue Note 61 24208675106.70 25069288294.62
Interest revenue
Earned premiums
Handling charges and commission revenue
II. Total Operating Costs 21603821463.14 21862599657.62
Including: Operating Costs Note 61 19609399374.08 20036698814.74
Interest Expenses
Handling charges and commission expenses
Surrender value
Net claim paid
Net provision of insurance reserve
Policy dividends paid
Reinsurance expenses
Taxes and surcharges Note 62 246746460.77 235462799.84
Sales expenses Note 63 362971160.80 386866509.47
Administrative expenses Note 64 991548421.96 937932200.19
Research and development expenses Note 65 389151493.26 382903265.05
Financing expenses Note 66 4004552.27 -117263931.67
Including: Interest expenses 52269326.61 80472368.46
Interest revenue 59618168.61 97971379.97
Plus: Other revenues Note 67 238343273.35 242640414.38
Investment gains ("-" for loss) Note 68 57847648.05 30193009.09
Including: Investment gains from associates and joint
-2117014.67-3018027.22
ventures
Gains from derecognition of financial assets measured
at amortized cost
Exchange gains ("-" for loss)
Net exposure hedging gains (Loss indicated by "-")
Gains from changes in fair value ("-" for loss) Note 70 32838480.38 14826169.53
Credit impairment losses ("-" for loss) Note 71 10379492.70 3888525.41
Asset impairment losses ("-" for loss) Note 72 -36034934.84 -6981927.26
Asset disposal gains ("-" for loss) Note 73 834727.21 29968.32
III. Operating Profit ("-" for loss) 2909062330.41 3491284796.47
Plus: Non-operating revenue Note 74 870774265.20 140787996.42
Minus: Non-operating expenses Note 75 50136606.69 282612101.76
IV. Total Profit ("-" for total loss) 3729699988.92 3349460691.13
Minus: Income tax expenses Note 76 448820076.82 609033475.57
V. Net Profit ("-" for net loss) 3280879912.10 2740427215.56
(I) Classified by Operating Continuity
118 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
1.Net profit from continuing operations ("-" for net loss) 3280879912.10 2740427215.56
2.Net profit from discontinued operations ("-" for net loss)
(II) Classified by Ownership
1.Net profit attributable to shareholders of the Parent
3280879912.102740427215.56
Company ("-" for net loss)
2.Profit or loss attributable to minority shareholders ("-"
for net loss)
VI. Net After-tax Amount of Other Comprehensive Income -104215210.75 -60692608.96
(I) Net After-tax Amount of Other Comprehensive Income
-104215210.75-60692608.96
Attributable to Owners of the Parent Company
1．Other comprehensive income not reclassified to profit or
-98025030.50-60687509.50
loss
(1) Changes in the defined benefit plan after remeasurement
(2) Other comprehensive income under Equity Method that
cannot be reclassified to profit or loss
(3) Changes in fair value of other equity instrument
-98025030.50-60687509.50
investments
(4) Changes in fair value due to enterprise's own credit risks
2. Other comprehensive income to be reclassified to profit or
-6190180.25-5099.46
loss
(1) Other comprehensive income under Equity Method that
can be reclassified to profit or loss
(2) Changes in fair value of other debt investments
(3) Amount of financial assets reclassified to other
comprehensive income
(4) Credit impairment reserves other debt investments
(5) Cash flow hedge reserve
(6) Converted difference in foreign currency statements -6190180.25 -5099.46
(7) Others
(II) Net After-tax Amount of Other Comprehensive Income
Attributable to Minority Shareholders
VII. Total Comprehensive Income 3176664701.35 2679734606.60
(I) Total Comprehensive Income Attributable to Owners of
3176664701.352679734606.60
the Parent Company
(II) Total Comprehensive Income Attributable to Minority
Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share (Yuan/share) 1.17 0.94
(II) Diluted Earnings per Share (Yuan/share) 1.17 0.94
For the current period in cases of merger of enterprises under the same control the net profit realized by
the merged entity prior to the merger is: RMB 0 yuan and the net profit realized by the merged entity in
the previous period is: RMB 0 yuan.Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang
Ailing
119 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Parent Company’s Income Statement
January to December 2025
Unit: Yuan Currency: RMB
Items Notes 2025 2024
I. Operating Revenue Note 4 16621867048.19 16291387822.55
Minus: Operating costs Note 4 15840717996.72 15714980693.14
Taxes and surcharges 26046755.78 25336810.64
Sales expenses 233338679.82 176339627.80
Administrative expenses 412782201.19 374185652.31
Research and development Expenses
Financing expenses -6639892.89 -15825243.09
Including: Interest expenses 3251190.59 10704676.75
Interest revenue 16071570.91 29784524.35
Plus: Other revenues 158560711.94 125717916.13
Investment gains ("-" for loss) Note 5 1480544116.22 1521253767.67
Including: Investment gains from associates and joint
ventures
Gains from derecognition of financial assets
measured at amortized cost
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 1603110.35 3570120.85
Credit impairment losses ("-" for loss) -3812847.11 595937.23
Asset impairment losses ("-" for loss) -3185955.75
Asset disposal gains ("-" for loss) 9798.24 381719.13
II. Operating Profit ("-" for loss) 1749340241.46 1667889742.76
Plus: Non-operating revenue 1000948.07 621667.62
Minus: Non-operating expenses 3793756.92 4614545.40
III. Total Profit ("-" for total loss) 1746547432.61 1663896864.98
Minus: Income tax expenses 70628144.67 76361393.63
IV. Net Profit ("-" for total loss) 1675919287.94 1587535471.35
(I) Net profit from continuing operations ("-" for net loss) 1675919287.94 1587535471.35
(II) Net profit from discontinued operations ("-" for net loss)
V. Net After-tax Amount of Other Comprehensive Income
(I) Other comprehensive income that cannot reclassified to
profit or loss
1. Changes in the defined benefit plan after remeasurement
2. Other comprehensive income under Equity Method that
cannot be reclassified to profit or loss
3. Changes in fair value of other equity instrument
investments
4. Changes in fair value due to enterprise's own credit risks
(II) Other comprehensive income to be reclassified to profit
or loss
120 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
1. Other comprehensive income under Equity Method that
can be reclassified to profit or loss
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified to other
comprehensive income
4. Credit impairment reserves for other debt investments
5. Cash flow hedge reserve
6. Converted difference in foreign currency statements
7. Others
VI. Total Comprehensive Income 1675919287.94 1587535471.35
VII. Earnings per Share:
(I) Basic Earnings per Share (Yuan/share)
(II) Diluted Earnings per Share (Yuan/share)
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing
121 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Consolidated Cash Flow Statement
January to December 2025
Unit: Yuan Currency: RMB
Items Notes 2025 2024
I. Cash Flow from Operating Activities:
Cash received from sales of goods or rendering of services 26284830929.52 27266900172.11
Net increase in customer bank deposits and due to banks and
other financial institutions
Net increase in borrowings from the central bank
Net increase in funds borrowed from other financial institutions
Cash received from premiums on original insurance contracts
Net cash received from reinsurance business
Net increase in deposits and investments from insurers
Cash received from interest handling charges and commissions
Net increase in borrowed funds
Net increase in repurchase business funds
Net cash received from securities trading brokerage business
Refunds of taxes received 564637199.44 590412944.20
Other cash received related to operating activities Note 78 314266906.41 448943253.14
Subtotal cash inflows from operating activities 27163735035.37 28306256369.45
Cash paid for goods and services 19183664918.44 20140823405.60
Net increase in loans and advances to customers
Net increase in placements with central bank and due to banks
Cash paid for claims for original insurance contracts
Net increase in funds lent
Cash paid for interest handling charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 1888800255.38 1968598894.60
Various taxes paid 1064967949.58 859863649.52
Other cash paid related to operating activities Note 78 1017042265.74 710255629.26
Subtotal cash outflows from operating activities 23154475389.14 23679541578.98
Net cash flow from operating activities 4009259646.23 4626714790.47
II. Cash Flow from Investing Activities:
Cash received from recovery of investments 49416904.11 190804566.68
Cash received from investment income 89022905.51 51309310.71
Net cash received from disposal of fixed assets intangible assets
3929974.233487009.20
and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Other cash received related to investing activities Note 78
Subtotal cash inflows from investing activities 142369783.85 245600886.59
Cash paid for acquisition and construction of fixed assets
2085097608.712004423105.69
intangible assets and other long-term assets
Cash paid for investments 1021970127.42 881089058.61
Net increase in pledge loans
122 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Net cash paid for acquisition of subsidiaries and other business
154418006.87
units
Other cash paid related to investing activities Note 78 25064758.89 9047530.00
Subtotal cash outflows from investing activities 3286550501.89 2894559694.30
Net cash flow from investing activities -3144180718.04 -2648958807.71
III. Cash Flow from Financing Activities:
Cash received from capital injections
Including: cash received from minority shareholders'
investments of subsidiaries
Cash received from borrowings 5303483203.63 6297183657.37
Other cash received related to financing activities Note 78 631857578.29 389646523.23
Subtotal cash inflows from financing activities 5935340781.92 6686830180.60
Cash paid for debt repayment 5009880000.02 6411943930.69
Cash paid for distribution of dividends profits or interest
1255746825.791789239618.91
repayment
Including: Dividends or profits paid to minority shareholders by
subsidiaries
Other cash paid related to financing activities Note 78 677245874.35 1223698914.69
Subtotal cash outflows from financing activities 6942872700.16 9424882464.29
Net cash flow from financing activities -1007531918.24 -2738052283.69
IV. Effect of Exchange Rate Changes on Cash and Cash
17029234.70111541460.34
Equivalents
V. Net Increase in Cash and Cash Equivalents -125423755.35 -648754840.59
Plus: Beginning balance of cash and cash equivalents 4131859602.14 4780614442.73
VI. Ending Balance of Cash and Cash Equivalents 4006435846.79 4131859602.14
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang
Ailing
Parent Company’s Cash Flow Statement
January to December 2025
Unit: Yuan Currency: RMB
Items Notes 2025 2024
I. Cash Flow from Operating Activities:
Cash received from sales of goods or rendering of services 17454954152.09 17686938141.73
Refunds of taxes received 35757373.32 36593937.03
Other cash received related to operating activities 1147679933.01 216045756.78
Subtotal cash inflows from operating activities 18638391458.42 17939577835.54
Cash paid for goods and services 15358349978.42 14784566567.52
Cash paid to and on behalf of employees 280601640.91 419301417.00
Various taxes paid 174498057.42 159164187.36
Other cash paid related to operating activities 1038483771.00 275914746.78
Subtotal cash outflows from operating activities 16851933447.75 15638946918.66
Net cash flow from operating activities 1786458010.67 2300630916.88
123 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
II. Cash Flow from Investing Activities:
Cash received from recovery of investments 25000000.00
Cash received from investment income 1627785800.01 1741708681.75
Net cash received from disposal of fixed assets intangible assets
5463635.23732576.80
and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Other cash received related to investing activities
Subtotal cash inflows from investing activities 1658249435.24 1742441258.55
Cash paid for acquisition and construction of fixed assets
75306179.8885083195.84
intangible assets and other long-term assets
Cash paid for investments 482000000.00 543499005.03
Net cash paid for acquisition of subsidiaries and other business
units
Other cash paid related to investing activities
Subtotal cash outflows from investing activities 557306179.88 628582200.87
Net cash flow from investing activities 1100943255.36 1113859057.68
III. Cash Flow from Financing Activities:
Cash received from capital injections
Cash received from borrowings 989034074.10 1159457970.00
Other cash received related to financing activities 2633542014.71 2521477694.21
Subtotal cash inflows from financing activities 3622576088.81 3680935664.21
Cash paid for debt repayment 2510860000.00 3650035500.00
Cash paid for distribution of dividends profits or interest
1222704653.171745904818.03
repayment
Other cash paid related to financing activities 2423214491.14 3075876525.63
Subtotal cash outflows from financing activities 6156779144.31 8471816843.66
Subtotal cash outflows from financing activities -2534203055.50 -4790881179.45
IV. Effect of Exchange Rate Changes on Cash and Cash
478020.712418952.54
Equivalents
V. Net Increase in Cash and Cash Equivalents 353676231.24 -1373972252.35
Plus: Beginning balance of cash and cash equivalents 1115336416.01 2489308668.36
VI. Ending Balance of Cash and Cash Equivalents 1469012647.25 1115336416.01
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing
124 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Consolidated Statement of Changes in Owner's Equity
January to December 2025
Unit: Yuan Currency: RMB
2025
E
Equity Attributable to Owners of the Parent Company q
u
Other i
Equity t
Instruments y
o
G f
e M
n i
P e
P n
r r
e o
e a
r r
f ; O
Items p i Total Owners’e R t
e O Other t Equity
Paid-in Capital (or r Minus: Treasury i Undistributed h
t t Capital Reserve Comprehensive Special Reserve Surplus Reserve Subtotal y
stock) r Stock s Profits e
u h Income S
e k r
a e h
d R s
l r a
S e
B s r
h s
o e
a e
n h
r r
d o
e v
s l
s e d
e
r
s
I. Balance at End of Last Year 2852788750.00 263154867.05 287771455.80 -55004961.46 4743615.67 1426394375.00 10370640110.47 14574945300.93 14574945300.93
Plus: Changes in accounting policies
Correction of prior period errors
Others
II. Balance at Beginning of the Current Year 2852788750.00 263154867.05 287771455.80 -55004961.46 4743615.67 1426394375.00 10370640110.47 14574945300.93 14574945300.93
III. The Amount Changes during the Current
-48547100.00-229404999.46-287771455.80-104215210.75249004.01-46528692.991913300658.021772625114.631772625114.63
Period ("-" for decrease)
(I) Total Comprehensive Income -104215210.75 3280879912.10 3176664701.35 3176664701.35
(II) Owners' Contributions and Decrease of
-48547100.00-229404999.46-287771455.80-214120621.78-204301265.44-204301265.44
Capital
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other
equipment instruments
3. Amount of share-based payments recognized in
owners' equity
125 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
4. Others -48547100.00 -229404999.46 -287771455.80 -214120621.78 -204301265.44 -204301265.44
(III) Profit Distribution 167591928.79 -1367579254.08 -1199987325.29 -1199987325.29
1. Withdrawal of surplus reserve 167591928.79 -167591928.79
2. Withdrawal of General Risk Reserve
3. Distribution to Owners (or Shareholders) -1199987325.29 -1199987325.29 -1199987325.29
4. Others
(IV) Internal Transfer of Owners' Equity
1. Capital (or stock) increased by capital reserve
transfer
2. Capital (or stock) increased by surplus reserve
transfer
3. Transfer of surplus reserve to offset losses
4. Transfer of changes in defined benefit plans to
retained earnings
5. Transfer of other comprehensive income to
retained earnings
6. Others
(V) Special Reserves 249004.01 249004.01 249004.01
1. Withdrawal during the Current Period 56762781.11 56762781.11 56762781.11
2. Usage during the Current Period -56513777.10 -56513777.10 -56513777.10
(VI) Others
IV. Balance at End of the Current Period 2804241650.00 33749867.59 -159220172.21 4992619.68 1379865682.01 12283940768.49 16347570415.56 16347570415.56
126 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
2024
Total Owners’
Equity Attributable to Owners of the Parent Company
Equity
Other Equity G
Instruments e
n
P
e Equ
r
r ity
e P
a of
f er
; O Mi
Items e p O R t nori
r et Other
Paid-in Capital (or t Minus: Treasury i Undistributed h ty
stock) r u Capital Reserve Comprehensive Special Reserve Surplus Reserve Subtotalh Stock s Profits e Sha
e al Income
e k r reh
d B
r R s old
S o
s e ers
h n
s
a d
e
r s
r
e
v
s
e
I. Balance at End of Last Year 2943426102.00 1032707760.40 576775719.27 5687647.50 3952446.88 1326294444.30 9427722131.86 14163014813.67 14163014813.67
Plus: Changes in accounting policies
Correction of prior period errors
Others
II. Balance at Beginning of the Current Year 2943426102.00 1032707760.40 576775719.27 5687647.50 3952446.88 1326294444.30 9427722131.86 14163014813.67 14163014813.67
III. The Amount of Changes during the Current
-90637352.00-769552893.35-289004263.47-60692608.96791168.79100099930.70942917978.61411930487.26411930487.26
Period ("-" for decrease)
(I) Total Comprehensive Income -60692608.96 2740427215.56 2679734606.60 2679734606.60
(II) Owners' Contributions and Decrease of
-90637352.00-769552893.35-289004263.47-571185981.88-571185981.88
Capital
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other
equipment instruments
3. Amount of share-based payments recognized in
owners' equity
4. Others -90637352.00 -769552893.35 -289004263.47 -571185981.88 -571185981.88
(III) Profit Distribution 100099930.70 -1797509236.95 -1697409306.25 -1697409306.25
1. Withdrawal of surplus reserve 100099930.70 -100099930.70
2. Withdrawal of General Risk Reserve
3. Distribution to Owners (or Shareholders) -1697409306.25 -1697409306.25 -1697409306.25
4. Others
127 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(IV) Internal Transfer of Owners' Equity
1. Capital (or stock) increased by capital reserve
transfer
2. Capital (or stock) increased by surplus reserve
transfer
3. Transfer of surplus reserve to offset losses
4. Transfer of changes in defined benefit plans to
retained earnings
5. Transfer of other comprehensive income to
retained earnings
6. Others
(V) Special Reserves 791168.79 791168.79 791168.79
1. Withdrawal during the Current Period 74358000.95 74358000.95 74358000.95
2. Usage during the Current Period -73566832.16 -73566832.16 -73566832.16
(VI) Others
IV. Balance at End of the Current Period 2852788750.00 263154867.05 287771455.80 -55004961.46 4743615.67 1426394375.00 10370640110.47 14574945300.93 14574945300.93
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing
128 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Parent Company’s Statement of Changes in Owner’s Equity
January to December 2025
Unit: Yuan Currency: RMB
2025
Other Equity
Instruments
Pre Other
Items Paid-in Capital (or fer Perpet Ot Capital Reserve Minus: Treasury Comprehe Specialstock) red Stock nsive Reserve Surplus Reserve Undistributed Profits Total Owners’ Equity
Sh ual her Income
are Bo s
s nds
I. Balance at End of Last Year 2852788750.00 229404999.46 287771455.80 1426394375.00 2611601565.13 6832418233.79
Plus: Changes in accounting policies
Correction of prior period errors
Others
II. Balance at Beginning of the Current Year 2852788750.00 229404999.46 287771455.80 1426394375.00 2611601565.13 6832418233.79
III. The Amount of Changes during the Current
Period ("-" for decrease) -48547100.00 -229404999.46 -287771455.80 -46528692.99 308340033.86 271630697.21
(I) Total Comprehensive Income 1675919287.94 1675919287.94
(II) Owners' Contributions and Decrease of
Capital -48547100.00 -229404999.46 -287771455.80 -214120621.78 -204301265.44
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other
equipment instruments
3. Amount of share-based payments recognized in
owners' equity
4. Others -48547100.00 -229404999.46 -287771455.80 -214120621.78 -204301265.44
(III) Profit Distribution 167591928.79 -1367579254.08 -1199987325.29
1. Withdrawal of surplus reserve 167591928.79 -167591928.79
2. Distribution to Owners (or Shareholders) -1199987325.29 -1199987325.29
3. Others
(IV) Internal Transfer of Owners' Equity
1. Capital (or stock) increased by capital reserve
transfer
2. Capital (or stock) increased by surplus reserve
transfer
3. Transfer of surplus reserve to offset losses
4. Transfer of changes in defined benefit plans to
retained earnings
5. Transfer of other comprehensive income to
retained earnings
6. Others
(V) Special Reserves
1. Withdrawal during the Current Period
2. Usage during the Current Period
129 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(VI) Others
IV. Balance at End of the Current Period 2804241650.00 1379865682.01 2919941598.99 7104048931.00
130 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
2024
Other Equity
Instruments
Pr Pr Pr
Items Paid-in Capital efe efe efe
Other Specia
rre rre rre Other Equity Other Equity Compreh l(or stock) Instruments Instruments ensive Reserv Surplus Reserve
Undistributed Total Owners’
d d d Profits Equity
Sh Sh Sh Income e
are are are
s s s
I. Balance at End of Last Year 2943426102.00 998957892.81 576775719.27 1326294444.30 2821575330.73 7513478050.57
Plus: Changes in accounting policies
Correction of prior period errors
Others
II. Balance at Beginning of the Current
Year 2943426102.00 998957892.81 576775719.27 1326294444.30 2821575330.73 7513478050.57
III. The Amount of Changes during the
Current Period ("-" for decrease) -90637352.00 -769552893.35 -289004263.47 100099930.70 -209973765.60 -681059816.78
(I) Total Comprehensive Income 1587535471.35 1587535471.35
(II) Owners' Contributions and Decrease of
Capital -90637352.00 -769552893.35 -289004263.47 -571185981.88
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other
equipment instruments
3. Amount of share-based payments
recognized in owners' equity
4. Others -90637352.00 -769552893.35 -289004263.47 -571185981.88
(III) Profit Distribution 100099930.70 -1797509236.95 -1697409306.25
1. Withdrawal of surplus reserve 100099930.70 -100099930.70
2. Distribution to Owners (or Shareholders) -1697409306.25 -1697409306.25
3. Others
(IV) Internal Transfer of Owners' Equity
1. Capital (or stock) increased by capital
reserve transfer
2. Capital (or stock) increased by surplus
reserve transfer
3. Transfer of surplus reserve to offset
losses
4. Transfer of changes in defined benefit
plans to retained earnings
131 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
5. Transfer of other comprehensive income
to retained earnings
6. Others
(V) Special Reserves
1. Withdrawal during the Current Period
2. Usage during the Current Period
(VI) Others
IV. Balance at End of the Current Period 2852788750.00 229404999.46 287771455.80 1426394375.00 2611601565.13 6832418233.79
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing
132 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
III. Basic Information of the Company
1. Overview of the Company
?Applicable □ Not Applicable
Meihua Holdings Group Co. Ltd. (hereinafter referred to as "Company" or "The Company")
formerly known as Wuzhou Minovo Co. Ltd. (hereinafter referred to as "Wuzhou Minovo") was listed
on Shanghai Stock Exchange on February 17 1995 underwent a name change from Wuzhou Minovo
Co. Ltd. to its current name following the absorption and merger with the original Meihua Holdings
Group Co. Ltd. (hereinafter referred to as "Original Meihua Group") and completed the business change
registration on March 3 2011. The Company’s unified social credit code is 91540000219667563J.The Original Meihua Group formerly known as Hebei Meihua MSG Group Co. Ltd. was
established with investment from natural persons Meng Qingshan Yang Weiyong and Hu Jijun. It
obtained the Business License of Legal Entity No. 131081000002308 issued by the Hebei
Administration for Industry and Commerce on April 23 2002.Wuzhou Minovo was established as a stock corporation through fundraising following the issuance
of 30 million shares to the public on January 6 1995 with Chengdu Tibet Hotel Tibet Autonomous
Region Trust Investment Company and Tibet Xingzang Industrial Development Company as sponsors.It was officially registered in Lhasa Tibet Autonomous Region on February 9 1995 with a Business
License of Legal Entity number of 5400001000327 and a total share capital of 73 million shares. On
February 17 of the same year with the approval of the China Securities Regulatory Commission the
Company's public shares were listed for trading on the Shanghai Stock Exchange under the stock code
600873.
On August 12 1995 the Shareholders' Meeting of the Company approved the Dividend
Distribution Plan and implemented the 1994 Distribution Plan of granting 3 shares for every 10 shares
held to all shareholders on August 21 1995. Based on a foundation of 73 million shares a total of 21.9
million shares were distributed elevating the Company's total share capital to 94.9 million shares.On December 19 1996 the Company deliberated and approved the Rights Issue Plan at the
Extraordinary Shareholders' Meeting for the Year 1996 and implemented the rights issue plan of
granting 3 shares for every 10 shares to all shareholders on August 12 1997. Based on a foundation of
94.90 million shares a total of 13336603 shares (including 1436603 transfer right shares) were
distributed elevating the Company's total share capital to 108236603 shares.On February 16 2003 Shandong Wuzhou Investment Group Co. Ltd. and Weifang Bohai Industry
Co. Ltd. respectively entered into agreements with the Tibet Autonomous Region State-owned Assets
Management Company (whose shares were obtained through gratuitous transfer by the Tibet
Autonomous Region State-owned Assets Management Bureau) whereby Shandong Wuzhou Investment
Group Co. Ltd. acquired 27102445 shares of the Company's state-owned legal person shares from
Tibet Autonomous Region State-owned Assets Management Company representing 25.04% of the
Company's total share capital and became the Company's largest shareholder; Weifang Bohai Industry
Co. Ltd. acquired 21535555 shares accounting for 19.90% of the Company's total share capital. The
133 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
aforementioned equity transfer was formally approved by the State-owned Assets Supervision and
Administration Commission of the State Council through document "State-owned Assets Ownership
Letter [2003] No. 25" on May 29 2003. On August 11 2003 the Company entered into the Asset
Exchange Agreement with Shandong Wuzhou Investment Group Co. Ltd. and Shandong Wuzhou
Electric Co. Ltd. and executed a significant asset exchange. Following the completion of this exchange
the total share capital remained unchanged.On May 22 2006 the Company convened the "Shareholders Meeting Related to the Split-Share
Reform" where the Company's split-share reform plan was deliberated and approved. All non-tradable
shareholders of the Company granted 2.8 shares for every 10 shares to all tradable shareholders. The
Company completed the implementation of the aforementioned split-share reform plan on June 2 2006.On December 22 2010 with the approval of the China Securities Regulatory Commission through
the document ZJXK [2010] No. 1888 "Approval of Wuzhou Minovo Co. Ltd.'s Major Asset Sale and
Merger with Meihua Holdings Group Co.Ltd. by Issuing New Shares" the Company issued
900000000 RMB ordinary shares to the Original Meihua Group for the acquisition of all equity
enjoyed by its shareholders. On December 24 2010 BDO CHINA LI XIN DA HUA. Certified Public
Accountants CO. LTD. issued the document LXDHYZ [2010] No. 200 "Capital (Contribution)
Verification Report" for this change in the share capital. On December 31 2010 the Company obtained
the Certificate of Securities Change Registration Issued by the Shanghai Branch of China Securities
Depository and Clearing Co. Ltd. with the registered share capital for securities of 1008236603
shares.On March 28 2011 the Company approved the implementation of the capital reserve conversion to
share capital plan during the Annual Shareholders Meeting for the Year 2010. Based on a foundation of
1008236603 shares every 10 shares were converted into 16.861 shares leading to a total share capital
of 2708236603 shares post-conversion. On April 12 2011 the Company completed the share change
registration at the Shanghai Branch of China Securities Depository and Clearing Co. Ltd. with the
registered share capital for securities of 2708236603 shares.According to the resolutions of the Fifth Meeting of the Sixth Board of Directors on April 22 2011
the Fourteenth Meeting of the Sixth Board of Directors on February 22 2012 the 2011 Annual
Shareholders Meeting held on March 22 2012 and the provisions specified in the amended articles of
association along with the approval of the China Securities Regulatory Commission through the
document ZJXKZ [2012] No. 1262 "Approval of Meihua Holdings Group Co. Ltd.'s Private Issuance of
Stocks" the Company agreed to privately issue up to 400 million RMB ordinary shares (A shares). On
March 26 2013 the Company privately issued 399990000 RMB ordinary shares (A shares) to specific
investors resulting in a total share capital of 3108226603 shares after this issuance. On March 29
2013 the Company completed the registration and custody procedures at the Shanghai Branch of China
Securities Depository and Clearing Co. Ltd.According to the resolutions of the Fifteenth Meeting of the Eighth Board of Directors on May 30
2018 the Seventeenth Meeting of the Eighth Board of Directors on June 20 2018 and the annual
134 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
shareholders meeting held on June 20 2018 the Company established a stock incentive plan by offering
34534865 treasury shares at a price of 2.46 yuan per share. These shares were granted to a total of 109
incentive recipients including directors senior executives key management personnel and core
technical staff working for Meihua Bio with no change in the registered capital.According to the resolutions of the 22nd Meeting of the Eighth Board of Directors on December 7
2018 and the First Extraordinary Shareholders Meeting in 2018 the Company processed the cancellation
of 51565 subscribed shares that were relinquished. After the cancellation the total share capital of the
Company amounted to 3108175038 shares.According to the resolutions of the 28th Meeting of the Eighth Board of Directors in June 2019 and
the 2018 Annual Shareholders Meeting on June 24 2019 the Company repurchased 3885400 restricted
shares for cancellation due to the departure of incentive recipients and incomplete individual
performance assessments. After the cancellation the total share capital of the Company amounted to
3104289638 shares.
According to the resolutions of the Fourth Meeting of the Ninth Board of Directors on April 22
2020 and the 2019 Annual Shareholders Meeting on May 20 2020 the Company repurchased
4267790 restricted shares for cancellation due to the departure of incentive recipients and incomplete
individual performance assessments. After the cancellation the total share capital of the Company
amounted to 3100021848.00 shares.According to the resolutions of the Seventeenth Meeting of the Ninth Board of Directors on May 12
2021 and the 2020 Annual Shareholders Meeting on May 26 2021 the Company repurchased
1401920 restricted shares for cancellation due to the departure of incentive recipients and incomplete
individual performance assessments. After the cancellation the total share capital of the Company
amounted to 3098619928 shares.According to the resolutions of the 27th Meeting of the Ninth Board of Directors on December 15
2021 the Second Extraordinary Shareholders Meeting for the year 2021 on December 31 2021 and the
2021 Annual Shareholders Meeting on June 9 2022 the Company canceled a total of 56154481 shares
repurchased previously. After the cancellation the total share capital of the Company amounted to
3042465447 shares.
According to the resolutions of the Third Meeting of the Tenth Board of Directors on April 8 2023
and the Second Extraordinary Shareholders Meeting for 2023 held on April 28 2023 the "Proposal to
Change the Company's Registered Capital" was deliberated and approved. According to the "Proposal to
Repurchase the Company’s Shares through Centralized Bidding Transactions" deliberated and approved
at the 2021 Annual Shareholders Meeting the repurchased shares were exclusively used for cancellation
to reduce the Company's registered capital. The Company has completed the repurchase and has
physically repurchased 99039345 shares. After the cancellation of these shares the total share capital
of the Company will change from 3042465447 shares to 2943426102 shares.According to the resolutions passed at the 13th Meeting of the 10th Board of Directors held on
September 23 2024 and the 2024 Second Extraordinary Shareholders’ Meeting held on October 11
135 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
2024 the proposal to change the company’s registered capital was approved. Based on the relevant
resolution from the shareholders’ meeting the company will use 90637352 repurchased shares for
cancellation to reduce its registered capital. After the cancellation of these shares the company’s total
share capital will be reduced from 2943426102 shares to 2852788750 shares.According to the resolutions of the 23th Meeting of the Tenth Board of Directors on December 11
2025 and the Second Extraordinary Shareholders Meeting for 2025 held on December 29 2025 the
"Proposal to Change the Company's Registered Capital" was deliberated and approved. According to the
"Proposal to Repurchase the Company’s Shares through Centralized Bidding Transactions" deliberated
and approved at the Second Extraordinary Shareholders Meeting for 2024 the repurchased shares were
exclusively used for cancellation to reduce the Company's registered capital. The Company has
completed the repurchase and has physically repurchased 48547100 shares. After the cancellation of
these shares the registered capital of the Company will change from RMB 2852788750 to RMB
2804241650.
After years of issuing bonus shares allotting new shares capitalizing retained earnings and issuing
additional shares as of December 31 2025 the company’s total share capital amounts to 2804241650
shares with a total share capital of 2804241650 yuan. The registered address is 158 Jinzhu West Road
Sunshine New City Building 11 Room 5 Lhasa City. The actual controller is Meng Qingshan.The company is in the food manufacturing industry with its main products including food flavor
enhancement products (such as monosodium glutamate disodium 5’-nucleotides xanthan gum food
grade etc.) animal nutrition amino acids (such as lysine threonine germinal amino acids valine etc.)
human medical amino acids (such as glutamine proline etc.) and other products (such as xanthan gum
petroleum grade fertilizers etc.).IV. Preparation Basis for Financial Statements
1. Preparation Basis
The Company’s financial statements are prepared on a going concern basis. Transactions and
events are recognized and measured in accordance with the provisions of the Enterprise Accounting
Standards their application guidelines and interpretations and the financial statements are prepared on
this basis. In addition the Company discloses relevant financial information in accordance with theChina Securities Regulatory Commission’s “Rule No. 15 on Information Disclosure by CompaniesIssuing Securities—General Provisions for Financial Reporting (Revised in 2023).”
2. Going Concern
?Applicable □ Not Applicable
The Company has evaluated its ability to continue as a going concern for the 12 months following
the end of the reporting period and has not identified any matters affecting the Company's ability to
continue as a going concern. The preparation of these financial statements on a going concern basis by
the Company is reasonable.
136 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
V. Significant Accounting Policies and Estimates
Specific accounting policies and estimates indicate:
?Applicable □ Not Applicable
The following significant accounting policies and estimates of the Company have been established
in accordance with the Enterprise Accounting Standards. Matters not addressed herein are handled in
accordance with the relevant accounting policies set forth in the Enterprise Accounting Standards.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Enterprise
Accounting Standards and present a true and fair view of the Company’s financial position operating
results changes in equity and cash flows.
2. Accounting Period
The Company’s accounting year runs from January 1 to December 31 of the Gregorian calendar.
3. Operating Cycle
?Applicable □ Not Applicable
The Company’s normal operating cycle is one year.
4. Functional Currency
The Company’s functional currency is the Renminbi. Overseas subsidiaries and branches use the
currency of the primary economic environment in which they operate as their functional currency.
5. Determination Method and Selection Basis for Materiality Standards
?Applicable □ Not Applicable
Items Materiality Standards
The amount of individual provision for bad debts accounts for more
Accounts receivable with material
than 10% of the total amount of various accounts receivable with
individual provision for bad debts
provision for bad debts and exceeds RMB 20 million yuan.Accounts receivable with provision for bad The amount of recovery or reversal of individual provision for bad
debts and with material amounts recovered debts accounts for more than 10% of the total account receivable and
or reversed during the Current Period and exceeds RMB 20 million yuan.The write-off amount of individual account receivable accounts for
Significant write-offs of accounts
more than 10% of the total provision for bad debts for various accounts
receivable
receivable and exceeds RMB 20 million yuan.Advance payments accounts payable Individual advance payments accounts payable contract liabilities and
contract liabilities and other accounts other account payable amount to more than 10% of the total amount of
payable with material amounts outstanding such accounts and exceed RMB 20 million yuan.for over one year
The budget amount for individual construction in progress project
Material construction in progress
exceeds RMB 100 million yuan.Individual investing activities account for more than 10% of the total
Material cash flows related to investing
cash inflows or outflows received or paid for the investing activities and
activities
exceed RMB 200 million yuan.Material joint ventures The book value of long-term equity investments in an individual
137 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
invested party accounts for more than 5% of the consolidated net assets
and exceeds RMB 100 million or the investment gains or losses
recognized under the equity method for long-term equity investments
account for more than 10% of the consolidated net profit.Any single type of estimated liability accounts for more than 10% of the
Material contingent matters
total estimated liabilities and exceeds RMB 100 million.
6. Accounting Treatment Method for Merger of Enterprises under the Same Control and
Different Controls
?Applicable □ Not Applicable
(1) Enterprise merger under the same control
Assets and liabilities acquired by the Company in a business combination are measured at the
acquisition date at the book value of the acquiree as reported in the consolidated financial statements of
the ultimate controlling party. Where the acquiree’s accounting policies and reporting periods differ
from those of the Company prior to the business combination the accounting policies and reporting
periods are harmonized based on the principle of materiality; that is the book value of the acquiree’s
assets and liabilities are adjusted in accordance with the Company’s accounting policies and reporting
periods. If there is a difference between the book value of the net assets acquired by the Company in a
business combination and the book value of the consideration paid the Company first adjusts capital
surplus (share premium or share capital premium). If the balance of capital surplus (share premium or
share capital premium) is insufficient to offset the difference the Company then offsets retained
earnings and undistributed profits in that order.For the accounting treatment of business combinations under the same control achieved through
step transactions see Section 5.7(5) of this chapter.
(2) Enterprise merger not under the same control
The Company measures the identifiable assets and liabilities of the acquiree acquired in a business
combination at their fair values as of the acquisition date. Where the acquiree’s accounting policies and
reporting periods differ from those of the Company prior to the business combination the Company
aligns the accounting policies and reporting periods based on the principle of materiality; that is the
book value of the acquiree’s assets and liabilities are adjusted in accordance with the Company’s
accounting policies and reporting periods. The excess of the Company’s acquisition cost as of the
acquisition date over the fair value of the acquiree’s identifiable assets and liabilities acquired in the
business combination is recognized as goodwill; If the cost of the business combination is less than the
fair value of the acquiree’s identifiable assets and liabilities acquired in the business combination the
Company first reviews the cost of the business combination and the fair value of the acquiree’s
identifiable assets and liabilities acquired in the business combination. If after such review the cost of
the business combination remains less than the fair value of the acquiree’s identifiable assets and
liabilities acquired the difference is recognized in profit or loss for the period of the business
combination.
138 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
For the accounting treatment of business combinations not under the same control using the
step-by-step method see Section 5.7(5) of this chapter.
(3) Treatment of transaction costs in enterprise merger
Intermediary expenses such as audit legal services evaluation consultation and other related
administrative expenses incurred to effect the enterprise merger are recognized in the profit and loss for
the current period at the time of occurrence. Transaction costs for issuing equity securities or debt
securities as consideration for the enterprise merger are included in the initial recognition amount of the
equity securities or debt securities.
7. Determination Criteria for Controls and Preparation Method for Consolidated Financial
Statements
?Applicable □ Not Applicable
(1) Criteria for Determining Control and Defining the Scope of Consolidation
Control refers to the Company’s power over an investee its entitlement to variable returns based on
its involvement in the investee’s activities and its ability to use that power to influence the amount of
those returns. The definition of control comprises three fundamental elements: first the investor
possesses power over the investee; second the investor receives variable returns based on its
involvement in the investee’s activities; and third the investor has the ability to use its power over the
investee to affect the amount of those returns. When the Company’s investment in the investee meets
these three criteria it indicates that the Company is able to control the investee.The scope of consolidation in consolidated financial statements is determined on the basis of
control and includes not only subsidiaries identified based on voting rights (or similar rights) alone or in
conjunction with other arrangements but also structured entities determined on the basis of one or more
contractual arrangements.A subsidiary refers to an entity controlled by the Company (including enterprises separable parts of
investees and structured entities controlled by the enterprise etc.). A structured entity refers to an entity
designed such that voting rights or similar rights are not the determining factor in identifying its
controlling party (Note: sometimes referred to as a special-purpose entity).
(2) Methods for Preparing Consolidated Financial Statements
The Company prepares the consolidated financial statements based on the financial statements of
the Company and its subsidiaries and other relevant information.When preparing the consolidated financial statements the Company views the enterprise group as a
single accounting entity and reflects the overall financial position operating results and cash flows of the
enterprise group in accordance with the recognition measurement and reporting requirements of
relevant Accounting Standards for Business Enterprises and the unified accounting policies and
accounting periods.* Consolidate items such as assets liabilities equity revenue expenses and cash flows of the
parent company and its subsidiaries.
139 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
* Eliminate the parent company’s long-term equity investment in the subsidiary against the parent
company’s share of the subsidiary’s equity.* Offset the effects of internal transactions between the parent company and its subsidiaries as
well as among the subsidiaries themselves. If internal transactions indicate that related assets have
incurred impairment losses such losses shall be recognized in full.* Adjust special transaction items from the perspective of the corporate group.
(3) Treatment of Changes in Subsidiaries During the Reporting Period
* Addition of Subsidiaries or Businesses
A. Subsidiaries or businesses added through a business combination under the same control
(a) When preparing the consolidated balance sheet adjust the opening balances of the consolidated
balance sheet and make corresponding adjustments to the relevant items in the comparative financial
statements treating the combined reporting entity as if it had existed continuously from the date the
ultimate controlling party first obtained control.(b) When preparing the consolidated income statement the revenue expenses and profit of the
subsidiary and business from the beginning of the current period to the end of the reporting period shall
be included in the consolidated income statement and the relevant items in the comparative financial
statements shall be adjusted accordingly treating the combined reporting entity as if it had existed
continuously from the date the ultimate controlling party assumed control.(c) When preparing the consolidated statement of cash flows include the cash flows of the
subsidiary and the business from the beginning of the reporting period to the end of the reporting period
in the consolidated statement of cash flows and adjust the relevant items in the comparative financial
statements as if the consolidated reporting entity had existed continuously from the date the ultimate
controlling party first obtained control.B. Subsidiaries or businesses acquired in a business combination not under the same control
(a) When preparing the consolidated balance sheet the opening balances of the consolidated
balance sheet are not adjusted.(b) When preparing the consolidated income statement the revenue expenses and profit of the
subsidiary or business from the acquisition date to the end of the reporting period are included in the
consolidated income statement.(c) When preparing the consolidated statement of cash flows include the cash flows of the
subsidiary from the acquisition date to the end of the reporting period in the consolidated statement of
cash flows.* Disposal of a Subsidiary or Business
A. When preparing the consolidated balance sheet the opening balances of the consolidated
balance sheet are not adjusted.B. When preparing the consolidated income statement the revenue expenses and profit of the
subsidiary or business from the beginning of the period to the date of disposal are included in the
consolidated income statement.
140 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
C. When preparing the consolidated cash flow statement the cash flows of the subsidiary or
business from the beginning of the period to the date of disposal are included in the consolidated cash
flow statement.
(4) Special Considerations in Consolidation Offsetting
* Long-term equity investments held by a subsidiary in the parent company shall be treated as
treasury stock of the parent company and recognized as a deduction from equity. They shall be presented
under the “Equity” section of the consolidated balance sheet as “Less: Treasury Stock.”
Long-term equity investments held by subsidiaries among themselves shall be offset against the
parent company’s equity investment in the respective subsidiary and the long-term equity investment
shall be offset against the parent company’s share of the corresponding subsidiary’s equity.* Since the “Special Reserve” and “General Risk Reserve” items do not constitute paid-in capital
(or share capital) or capital surplus nor are they retained earnings or undistributed profits they are
reinstated based on the parent company’s share after offsetting long-term equity investments against the
subsidiary’s equity.* Where temporary differences arise between the book value of assets and liabilities in the
consolidated balance sheet and their tax bases at the respective taxable entities due to the elimination of
unrealized gains or losses on internal sales deferred tax assets or deferred tax liabilities shall be
recognized in the consolidated balance sheet and income tax expense in the consolidated income
statement shall be adjusted accordingly except for deferred income taxes related to transactions or
events recognized directly in equity and business combinations.* Unrealized gains or losses arising from the sale of assets by the Company to a subsidiary shall
be fully offset against “Net income attributable to owners of the parent.” Unrealized gains or lossesarising from the sale of assets by a subsidiary to the Company shall be allocated and offset between “Netincome attributable to owners of the parent” and “Minority interest” in proportion to the Company’s
ownership interest in that subsidiary. Unrealized gains or losses arising from the sale of assets between
subsidiaries shall be allocated and offset between “Net Income Attributable to Owners of the Parent”
and “Minority Interest” in proportion to the Company’s ownership interest in the selling subsidiary.* If the current-period loss allocated to minority shareholders of a subsidiary exceeds the minority
shareholders’ share of the subsidiary’s opening equity the excess amount shall still be offset against
minority interest.
(5) Accounting Treatment for Special Transactions
* Acquisition of Minority Interests
When the Company acquires equity interests in a subsidiary held by minority shareholders the cost
of the newly acquired long-term equity investment in the separate financial statements is measured at the
fair value of the consideration paid. In the consolidated financial statements the difference between the
long-term equity investment newly acquired through the purchase of minority interests and the share of
the subsidiary’s net assets that should be recognized from the acquisition date or the consolidation date
calculated based on the new ownership percentage shall be adjusted against capital surplus (capital
141 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
premium or share premium). If the capital surplus is insufficient to absorb the difference it shall be
offset against retained earnings and undistributed profits in that order.* Acquisition of control over a subsidiary through multiple transactions
A. Business combinations under common control achieved through multiple transactions
On the combination date the Company determines the initial cost of the long-term equity
investment in its separate financial statements based on its share of the book value of the subsidiary’s net
assets in the ultimate controlling party’s consolidated financial statements; The difference between the
initial investment cost and the sum of the book value of the long-term equity investment prior to the
merger and the book value of the additional consideration paid for the acquisition of further shares on
the merger date is recognized in capital surplus (capital premium or share premium). If capital surplus
(capital premium or share premium) is insufficient to absorb the difference the remaining amount is
offset against retained earnings and undistributed profits in that order.In consolidated financial statements the assets and liabilities of the acquiree acquired by the
consolidating entity in the merger are measured at their book value in the ultimate controlling party’s
consolidated financial statements as of the merger date except for adjustments made due to differences
in accounting policies and reporting periods; The difference between the sum of the book value of the
investment held prior to the merger and the book value of the additional consideration paid on the
merger date and the book value of the net assets acquired in the merger is recognized in capital surplus
(share premium/capital premium). If capital surplus is insufficient to absorb the difference the
remaining amount is recognized in retained earnings.For an equity investment held by the acquirer prior to obtaining control of the acquiree any gains
or losses other comprehensive income and changes in other equity recognized between the date of
acquisition of the original equity interest and the date on which the acquirer and the acquiree came under
the same ultimate control (whichever is later) and the merger date shall be offset against retained
earnings at the beginning of the comparative reporting period or against profit or loss for the current
period respectively.B. Implementing a business combination between entities not under the same control in stages
through multiple transactions
On the combination date in the separate financial statements the initial cost of the long-term equity
investment is determined as the sum of the book value of the previously held long-term equity
investment and the cost of the new investment acquired on the combination date.In the consolidated financial statements equity interests in the acquiree held prior to the acquisition
date are remeasured at their fair value as of the acquisition date. If an equity interest in the acquiree held
prior to the acquisition date is designated as a financial asset at fair value through other comprehensive
income the difference between its fair value and book value is recognized in retained earnings; and the
cumulative fair value changes previously recognized in other comprehensive income are transferred to
retained earnings; if the equity interest in the acquiree held prior to the acquisition date is classified as a
financial asset at fair value through other comprehensive income or as a long-term equity investment
142 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
accounted for using the equity method the difference between its fair value and book value is
recognized as investment income for the period; If the equity interest in the acquiree held prior to the
acquisition date relates to other comprehensive income under the equity method and changes in other
equity under the equity method (excluding net profit or loss other comprehensive income and
distributions of profits) the related other comprehensive income is accounted for on the acquisition date
using the same basis as if the investee had directly disposed of the relevant assets or liabilities and the
related changes in other equity are reclassified to investment income for the period in which the
acquisition date falls.* Disposal of Long-Term Equity Investments in Subsidiaries Without Loss of Control
When a parent company disposes of a portion of its long-term equity investment in a subsidiary
without losing control the difference between the disposal proceeds and the parent company’s share of
the subsidiary’s net assets—calculated continuously from the acquisition date or the date of
consolidation—is recognized in the consolidated financial statements. This amount is recorded in capital
surplus (capital premium or share premium). If the capital surplus is insufficient to absorb the difference
the remaining amount is recognized in retained earnings.* Disposal of the Company’s Long-Term Equity Investment in a Subsidiary Resulting in Loss of
Control
A. One-Time Disposal
If the Company loses control over the investee due to the disposal of a portion of its equity
investment or other reasons the remaining equity interest is remeasured at its fair value as of the date
control is lost when preparing the consolidated financial statements. The difference between the sum of
the consideration received from the disposal of the equity interest and the fair value of the remaining
equity interest and the sum of the share of the net assets of the former subsidiary calculated based on the
original ownership percentage (accrued continuously from the acquisition date or the date of
consolidation) and goodwill is recognized as investment income in the period in which control is lost.Other comprehensive income related to equity investments in subsidiaries is accounted for upon
loss of control on the same basis as if the subsidiary had directly disposed of the relevant assets or
liabilities. All other changes in equity related to the former subsidiary that were previously accounted for
under the equity method are reclassified to profit or loss upon loss of control.B. Step-by-Step Disposal of Multiple Transactions
In consolidated financial statements one should first determine whether the step-by-step
transactions constitute a “bundled transaction.”
If the step-by-step transaction does not constitute a “bundled transaction” in the separate financial
statements for each transaction prior to the loss of control over the subsidiary the book value of the
long-term equity investment corresponding to each disposal of equity interests shall be transferred; the
difference between the proceeds received and the book value of the long-term equity investment
disposed of shall be recognized as investment income for the current period; In the consolidated
financial statements the transaction should be accounted for in accordance with the relevant provisions
143 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025for “the parent company’s disposal of a long-term equity investment in a subsidiary without losingcontrol.”
If the step-by-step transactions constitutes a “bundled transaction” each transaction shall be
accounted for as a single transaction involving the disposal of a subsidiary and the loss of control; in the
separate financial statements the difference between each disposal consideration received prior to the
loss of control and the book value of the long-term equity investment corresponding to the disposed
equity interest shall first be recognized in other comprehensive income and then transferred in full to
profit or loss for the period in which control is lost; In the consolidated financial statements for each
transaction prior to the loss of control the difference between the disposal proceeds and the share of the
subsidiary’s net assets corresponding to the disposed investment shall be recognized in other
comprehensive income and transferred in full to profit or loss for the period in which control is lost.Multiple transactions are generally accounted for as a “bundled transaction” if the terms conditions
and economic effects of the transactions meet one or more of the following criteria:
(a) These transactions are concluded simultaneously or taking into account their mutual impacts.(b) These transactions collectively achieve a complete business outcome.(c) The occurrence of one transaction depends on the occurrence of at least one other transaction.(d) A transaction is uneconomical when considered alone but becomes economical when
considered together with other transactions.* Dilution of the parent company’s ownership interest due to a capital increase by the subsidiary’s
minority shareholders
When other shareholders (minority shareholders) of a subsidiary make a capital contribution to the
subsidiary this dilutes the parent company’s ownership interest in the subsidiary. In the consolidated
financial statements the parent company’s share of the subsidiary’s net book value prior to the capital
increase is calculated based on the parent company’s ownership percentage before the increase. The
difference between this amount and the parent company’s share of the subsidiary’s net book value after
the increase—calculated based on the parent company’s ownership percentage after the increase—is
recorded as an adjustment to capital surplus (capital premium or share premium). If the capital surplus
(capital premium or share premium) is insufficient to absorb the difference the remaining amount is
recorded as an adjustment to retained earnings.
8. Classification of Joint Arrangements and Accounting Treatment Method for Joint Operations
?Applicable □ Not Applicable
A joint arrangement is an arrangement that is jointly controlled by two or more parties. The
Company’s joint arrangements are classified as joint operations and joint ventures.
(1) Joint operations
A joint operation is a joint arrangement in which the Company holds the assets related to the
arrangement and bears the liabilities related to the arrangement.The Company recognizes the following items related to its interests in joint operations and accounts
for them in accordance with relevant Accounting Standards for Business Enterprises:
144 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
* Recognition of assets held separately and recognition of jointly held assets based on
proportional ownership.* Recognition of liabilities held separately and recognition of jointly held liabilities based on
proportional ownership.* Recognition of revenue from the sale of its share of output from joint operations.* Recognition of revenue from the sale of output from joint operations based on proportional
ownership.* Recognition of expenses incurred separately and recognition of expenses incurred by joint
operations based on proportional ownership.
(2) Joint Ventures
A joint venture is a joint arrangement in which the Company has rights only to the net assets of the
arrangement.The Company accounts for its investments in joint ventures in accordance with the provisions for
equity method accounting applicable to long-term equity investments.
9. Determination Criteria for Cash and Cash Equivalents
Cash equivalents refer to short-term investments (generally maturing within three months from the
purchase date) that are highly liquid easily convertible into a known amount of cash and have a
minimal risk of changes in value.
10. Translation of Foreign Currency Transactions and Foreign Currency Financial Statements
?Applicable □ Not Applicable
(1) Method for Determining the Exchange Rate for Foreign Currency Transactions
Upon initial recognition of foreign currency transactions the Company converts the transaction into
the functional currency using an exchange rate that approximates the spot rate on the transaction date
(hereinafter referred to as the “approximate spot rate”).
(2) Method for Translating Foreign Currency Monetary Items at the Balance Sheet Date
At the balance sheet date foreign currency monetary items are translated using the spot exchange
rate prevailing on the balance sheet date. Exchange differences arising from the difference between the
spot exchange rate on the balance sheet date and the spot exchange rate at the time of initial recognition
or on the previous balance sheet date are recognized in profit or loss for the current period. For foreign
currency non-monetary items measured at historical cost the spot exchange rate prevailing on the
transaction date continues to be used for translation; For inventory measured at the lower of cost and net
realizable value when inventory is purchased in a foreign currency and its net realizable value at the
balance sheet date is expressed in that foreign currency the net realizable value is first converted into the
functional currency amount using the spot exchange rate at the balance sheet date. This amount is then
compared with the inventory cost expressed in the functional currency to determine the ending value of
the inventory; For non-monetary items denominated in foreign currencies that are measured at fair value
the spot exchange rate on the date the fair value is determined is used for translation. For financial assets
145 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
measured at fair value with changes recognized in profit or loss the difference between the translated
amount in the functional currency and the original amount in the functional currency is recognized in
profit or loss for the period; for non-trading equity instrument investments designated as measured at fair
value with changes recognized in other comprehensive income the difference between the translated
amount in the functional currency and the original amount in the functional currency is recognized in
other comprehensive income.
(3) Methods for Translating Foreign Currency Financial Statements
Before translating the financial statements of a company’s foreign operations the accounting
periods and accounting policies of those operations must first be adjusted to align with the Company’s
accounting periods and policies. Financial statements must then be prepared in the relevant currency (a
currency other than the functional currency) based on the adjusted accounting policies and periods. The
financial statements of the foreign operations are then translated using the following methods:
* Assets and liabilities on the balance sheet are translated using the spot exchange rate at the
balance sheet date. Equity items with the exception of “retained earnings” are translated using the spot
exchange rate at the date of the transaction.* Revenue and expense items on the income statement are translated using an approximate spot
exchange rate at the date of the transaction.? Foreign currency cash flows and the cash flows of foreign subsidiaries are translated using the
approximate spot exchange rate prevailing on the date the cash flows occurred. The effect of exchange
rate changes on cash shall be treated as an adjusting item and presented separately in the statement of
cash flows.* Foreign currency translation differences arising from the translation of financial statements are
presented in the “Other Comprehensive Income” line item under equity in the consolidated balance sheet
when preparing consolidated financial statements.Upon the disposal of a foreign operation and the loss of control all foreign currency translation
differences related to that foreign operation which were previously presented under the equity section of
the balance sheet shall be transferred to profit or loss for the period of disposal either in full or in
proportion to the disposal of the foreign operation.
11. Financial Instruments
?Applicable □ Not Applicable
The financial instrument is a contract that gives rise to a financial asset of one party and a financial
liability or equity instrument of another party.
(1) Recognition and Derecognition of Financial Instruments
When the Company becomes a party to a financial instrument contract it recognizes the related
financial asset or financial liability.The financial asset is derecognized if it meets any of the following conditions:
* The contractual rights to receive cash flows from the financial asset have terminated;
146 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
* The financial asset has been transferred and meets the derecognition criteria for transferred
financial assets described below.If the present obligation under a financial liability (or a portion thereof) has been discharged the
financial liability (or that portion of the financial liability) shall be derecognized. If the Company (the
borrower) enters into an agreement with the lender to replace the original financial liability with a new
financial liability and the contractual terms of the new financial liability differ substantially from those
of the original financial liability the original financial liability shall be derecognized and a new financial
liability shall be recognized simultaneously. If the Company makes a substantive modification to the
contractual terms of the original financial liability (or a portion thereof) the original financial liability
shall be derecognized and a new financial liability shall be recognized in accordance with the modified
terms.Financial assets held for trading are recognized and derecognized on the trade date. Financial assets
held for trading are those for which delivery is scheduled in accordance with the terms of the contract
and the timing established by regulations or market conventions. The trade date is the date on which the
Company commits to purchase or sell a financial asset.
(2) Classification and Measurement of Financial Assets
Upon initial recognition the Company classifies financial assets based on the business model used
to manage them and the contractual cash flow characteristics of the financial assets into the following
categories: financial assets measured at amortized cost financial assets measured at fair value with
changes recognized in profit or loss and financial assets measured at fair value with changes recognized
in other comprehensive income. Financial assets shall not be reclassified after initial recognition unless
the Company changes the business model for managing financial assets; in such cases all affected
financial assets are reclassified on the first day of the first reporting period following the change in
business model.Financial assets are measured at fair value upon initial recognition. For financial assets measured at
fair value with changes recognized in profit or loss related transaction costs are recognized directly in
profit or loss; for financial assets in other categories related transaction costs are included in their initial
recognition amount. For notes receivable and accounts receivable arising from the sale of goods or the
provision of services that do not contain or take into account a significant financing component the
Company measures them initially at the transaction price as defined in the revenue standards.The subsequent measurement of financial assets depends on their classification:
* Financial assets measured at amortized cost
The financial asset is classified as a financial asset measured at amortized cost if it meets all of the
following conditions: the Company’s business model for managing the financial asset is aimed at
collecting contractual cash flows; and the contractual terms of the financial asset provide that cash flows
arising on specific dates consist solely of payments of principal and interest based on the outstanding
principal amount. For such financial assets the effective interest method is applied to measure them at
147 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
amortized cost. Gains or losses arising from derecognition amortization using the effective interest
method or impairment are recognized in profit or loss for the current period.* Financial assets measured at fair value with changes recognized in other comprehensive income
The financial asset is classified as a financial asset measured at fair value with changes recognized
in other comprehensive income if it meets all of the following criteria: the Company’s business model
for managing the financial asset is to collect contractual cash flows as well as to sell the financial asset;
and the contractual terms of the financial asset provide that cash flows arising on specific dates consist
solely of payments of principal and interest based on the outstanding principal amount. Such financial
assets are subsequently measured at fair value. Except for impairment losses or gains and foreign
exchange gains or losses which are recognized in profit or loss changes in the fair value of such
financial assets are recognized in other comprehensive income until the financial asset is derecognized
at which time the cumulative gain or loss is transferred to profit or loss. However interest income on
such financial assets calculated using the effective interest method is recognized in profit or loss.The Company has irrevocably elected to designate certain non-trading equity instrument
investments as financial assets measured at fair value with changes recognized in other comprehensive
income recognizing only the related dividend income in profit or loss for the period and recognizing
changes in fair value as other comprehensive income until the financial asset is derecognized at which
time the cumulative gain or loss is transferred to retained earnings.* Financial assets measured at fair value with changes recognized in profit or loss
Financial assets other than those measured at amortized cost and those measured at fair value with
changes recognized in other comprehensive income are classified as financial assets measured at fair
value with changes recognized in profit or loss. For such financial assets subsequent measurement is
based on fair value and all changes in fair value are recognized in profit or loss.
(3) Classification and Measurement of Financial Liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value with
changes recognized in profit or loss loan commitments and financial guarantee contract liabilities at
below-market interest rates and financial liabilities measured at amortized cost.The subsequent measurement of financial liabilities depends on their classification:
* Financial liabilities measured at fair value with changes recognized in profit or loss
This category of financial liabilities includes financial liabilities held for trading (including
derivatives classified as financial liabilities) and financial liabilities designated as measured at fair value
with changes recognized in profit or loss. After initial recognition these financial liabilities are
measured at fair value and any resulting gains or losses (including interest expense) are recognized in
profit or loss except where related to hedge accounting. However for financial liabilities designated as
measured at fair value through profit or loss the Company recognizes changes in the fair value of such
liabilities arising from changes in their own credit risk in other comprehensive income. Upon
derecognition of such financial liabilities the cumulative gains and losses previously recognized in other
148 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
comprehensive income shall be reclassified out of other comprehensive income and recognized in
retained earnings.* Loan Commitments and Financial Guarantee Contract Liabilities
The loan commitment is a commitment by the Company to provide a loan to a customer under
specified contractual terms during the commitment period. Loan commitments are impaired in
accordance with the expected credit loss model.The financial guarantee contract is a contract that requires the Company to make specified
payments to a contract holder that has suffered a loss when a specified obligor fails to make payment
when due in accordance with the original or modified terms of a debt instrument. Financial guarantee
contract liabilities are subsequently measured at the higher of the loss allowance determined in
accordance with the impairment principles for financial instruments and the initial recognition amount
less any cumulative amortisation recognised in accordance with the revenue recognition principles.* Financial liabilities measured at amortized cost
After initial recognition other financial liabilities are measured at amortized cost using the effective
interest method.Except in specific circumstances financial liabilities and equity instruments are distinguished based
on the following principles:
* If the Company cannot unconditionally avoid fulfilling a contractual obligation by delivering
cash or other financial assets that contractual obligation meets the definition of a financial liability.Some financial instruments although they do not explicitly include terms and conditions requiring the
delivery of cash or other financial assets may indirectly give rise to a contractual obligation through
other terms and conditions.* If a financial instrument must be or may be settled in the entity’s own equity instruments
consideration must be given to whether the entity’s own equity instruments used to settle the instrument
serve as a substitute for cash or other financial assets or are intended to give the holder of the instrument
a residual interest in the assets of the issuer after all liabilities have been deducted. If the former the
instrument is a financial liability of the issuer; if the latter the instrument is an equity instrument of the
issuer. In some cases a financial instrument contract requires or permits the Company to settle the
instrument using its own equity instruments where the amount of the contractual right or obligation
equals the number of the Company’s own equity instruments to be received or delivered multiplied by
their fair value at settlement the contract is classified as a financial liability regardless of whether the
amount of the contractual right or obligation is fixed or varies in whole or in part based on changes in
variables other than the market price of the Company’s own equity instruments (such as interest rates
the price of a commodity or the price of a financial instrument).
(4) Derivative Financial Instruments and Embedded Derivatives
Derivative financial instruments are initially measured at fair value on the date the derivative
contract is entered into and are subsequently measured at fair value. Derivative financial instruments
149 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
with a positive fair value are recognized as assets while those with a negative fair value are recognized
as liabilities.Except for the effective portion of cash flow hedges which is recognized in other comprehensive
income and reclassified to profit or loss when the hedged item affects profit or loss gains or losses
arising from changes in the fair value of derivatives are recognized directly in profit or loss.For hybrid instruments containing embedded derivatives if the host contract is a financial asset the
hybrid instrument as a whole is subject to the relevant provisions for the classification of financial assets.If the host contract is not a financial asset and the hybrid instrument is not accounted for as a financial
asset at fair value through profit or loss and the embedded derivative has no close relationship with the
host contract in terms of economic characteristics and risks and a standalone instrument with the same
terms as the embedded derivative meets the definition of a derivative the embedded derivative is
separated from the hybrid instrument and treated as a separate derivative financial instrument. If the fair
value of the embedded derivative cannot be measured separately at the acquisition date or subsequent
balance sheet dates the hybrid instrument as a whole shall be designated as a financial asset or financial
liability measured at fair value through profit or loss.
(5) Impairment of Financial Instruments
The Company recognizes loss allowances based on expected credit losses for financial assets
measured at amortized cost debt investments measured at fair value with changes recognized in other
comprehensive income contract assets lease receivables loan commitments and financial guarantee
contracts.* Measurement of Expected Credit Losses
Expected credit losses refer to the weighted average of credit losses on financial instruments
weighted by the risk of default. Credit losses represent the difference between all contractual cash flows
discounted by the Company at the original effective interest rate and receivable by the Company
according to the contract and all cash flows expected to be received by the Company namely the
present value of all cash shortfalls. For financial assets purchased or originated by the Company with
incurred credit impairment impairment is discounted at the effective interest rate adjusted for credit of
such financial assets.Expected credit losses over the entire life of the financial instrument refer to the expected credit
losses resulting from all possible default events that may occur over the entire expected life of the
financial instrument.Expected credit losses over the next 12 months refer to expected credit losses resulting from
potential default events on the financial instrument that may occur within 12 months after the balance
sheet date (or within the expected life of the financial instrument if it is less than 12 months); they
constitute a portion of the expected credit losses over the entire life.At each balance sheet date the Company measures expected credit losses separately for financial
instruments in different stages. Financial instruments for which credit risk has not increased significantly
since initial recognition are classified in Stage 1 and the Company measures loss allowances based on
150 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
expected credit losses over the next 12 months; financial instruments for which credit risk has increased
significantly since initial recognition but have not yet incurred credit impairment are classified in Stage
2 and the Company measures loss allowances based on expected credit losses over the entire remaining
life of the instrument; Financial instruments for which credit impairment has occurred since initial
recognition are classified in Stage 3 and the Company measures the loss allowance based on the
expected credit losses over the entire remaining life of the instrument.For financial instruments with low credit risk as of the balance sheet date the Company assumes
that their credit risk has not increased significantly since initial recognition and measures the loss
allowance based on expected credit losses over the next 12 months.For financial instruments in Stage 1 and Stage 2 as well as those with low credit risk the Company
calculates interest income based on their book balance (before deducting impairment allowances) and
the effective interest rate. For financial instruments in Stage 3 interest income is calculated based on the
amortized cost (the book balance less any impairment loss) and the effective interest rate.For notes receivable accounts receivable receivables financing and contract assets regardless of
whether a significant financing component exists the Company measures the loss allowance based on
the expected credit losses over the entire life of the instrument.A. Receivables/Contract Assets
For notes receivable accounts receivable other receivables receivables financing contract assets
and long-term receivables for which there is objective evidence of impairment or other criteria requiring
individual assessment impairment tests are conducted on an individual basis to recognize expected
credit losses and record individual impairment allowances. For notes receivable accounts receivable
other receivables receivables financing contract assets and long-term receivables for which there is no
objective evidence of impairment or when information regarding expected credit losses for an
individual financial asset cannot be assessed at a reasonable cost the Company classifies notes
receivable accounts receivable other receivables receivables financing contract assets and long-term
receivables into several groups based on credit risk characteristics. Expected credit losses are calculated
on a group basis and the basis for determining these groups is as follows:
The basis for determining portfolios for notes receivable is as follows:
Portfolio Name Basis for Determining Portfolios Provision Method
The issuer exhibits a high credit rating no Refer to historical credit loss experience and take into
Bank history of default on bills a very low credit consideration current conditions and forecasts of future
Acceptance Bill loss risk and a strong ability to fulfill its economic conditions to calculate expected credit losses
Portfolio 1 cash flow obligations under payment through default risk exposure and the expected credit loss
contracts. rate over the entire duration.Refer to historical credit loss experience and take into
Bank Acceptors other than those in Bank consideration current conditions and forecasts of future
Acceptance Bill Acceptance Bill Portfolio 1 are bank-type economic conditions to calculate expected credit losses
Portfolio 2 financial institutions. through default risk exposure and the expected credit loss
rate over the entire duration.
151 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Refer to historical credit loss experience and take into
consideration current conditions and forecasts of future
Commercial Acceptors are financial companies or
economic conditions to prepare a table comparing the
Acceptance Bill non-bank financial institutions or corporate
aging of accounts receivable with the expected credit loss
Portfolio units.rate over the entire duration (similar to accounts
receivable) to calculate expected credit losses.The basis for determining portfolios for accounts receivable is as follows:
Portfolio Name Basis for Determining Portfolios Provision Method
Refer to historical credit loss experience and take into
This portfolio utilizes the aging of
consideration current conditions and forecasts of future
Aging Analysis Portfolio receivables as a credit risk
economic conditions to measure the provision for bad
characteristic.debts.This portfolio utilizes the related Refer to historical credit loss experience and take into
Related Party Portfolio
party portfolio within the consideration current conditions and forecasts of future
within the Consolidation
consolidation scope as a credit risk economic conditions to measure the provision for bad
Scope
characteristic. debts.The basis for determining groups for other receivables is as follows:
Portfolio Name Basis for Determining Portfolios Provision Method
Provision is made according to the table for comparison
Aging is used as the credit risk
Aging Portfolio between aging and expected credit loss rate (same as
characteristic
accounts receivable)
Government Accounts Government accounts receivable Refer to historical credit loss experience and take into
Portfolio of Account consideration current conditions and forecasts of future
Related parties within the
Current between Related economic conditions to calculate expected credit losses
consolidation scope of the
Parties within the through default risk exposure and the expected credit loss
Company
Consolidation Scope rate over the next 12 months or the entire duration.The basis for determining portfolios for receivables financing is as follows:
Portfolio Name Basis for Determining Portfolios Provision Method
The Company uses aging to assess the expected credit
losses of this type of portfolio. This portfolio carries
similar risk characteristics and aging information can
reflect the ability of this portfolio to pay when accounts
This portfolio utilizes the aging of receivable mature. As of the balance sheet date the
Accounts
Receivables Financing as a credit risk Company refers to historical credit loss experience and
Receivable
characteristic takes into current conditions and forecasts of future
economic conditions to a table comparing the aging of
accounts receivable with the expected credit loss rate over
the entire duration (similar to accounts receivable) to
calculate expected credit losses.
152 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
This portfolio consists of notes issued by
Refer to historical credit loss experience and take into
entities with high credit ratings with no
consideration current conditions and forecasts of future
Notes history of note defaults and very low credit
economic conditions to calculate expected credit losses
Receivable loss risks and with strong ability to fulfill
through default risk exposure and the expected credit loss
their cash flow obligations under payment
rate over the entire duration.contracts in the short term
The basis for determining portfolios for contract assets is as follows:
Basis for Determining
Portfolio Name Provision Method
Portfolios
Refer to historical credit loss experience and take into consideration current
Unmatured Security conditions and forecasts of future economic conditions to calculate expected
Portfolio 1
Deposits credit losses through default risk exposure and the expected credit loss rate
over the entire duration.The basis for determining portfolios for long-term receivables is as follows:
Basis for Determining
Portfolio Name Provision Method
Portfolios
Refer to historical credit loss experience and take into consideration current
conditions and forecasts of future economic conditions to calculate expected
Portfolio 1 Finance Leases
credit losses through default risk exposure and the expected credit loss rate
over the entire duration.The Company’s method for calculating aging data to identify credit risk profiles:
Accounts
Receivables Long-term
Aging Notes Receivable Receivable/Contract Other Receivables
Financing Receivables
Assets
Within 1 year 5% 5% 5% 5% 5%
1–2 years 10% 10% 10% 10% 10%
2–3 years 30% 30% 30% 30% 30%
3–4 years 50% 50% 50% 50% 50%
4–5 years 80% 80% 80% 80% 80%
Over 5 years 100% 100% 100% 100% 100%
B. Debt Investments and Other Debt Investments
For debt investments and other debt investments the Company calculates expected credit losses
based on the nature of the investment the type of counterparty and the type of exposure using default
risk exposure and expected credit loss rates over the next 12 months or the entire life of the investment.* Low Credit Risk
The financial instrument is considered to have low credit risk if the risk of default is low the
borrower has a strong ability to meet its contractual cash flow obligations in the short term and adverse
changes in economic conditions and the operating environment over a longer period do not necessarily
impair the borrower’s ability to meet its contractual cash flow obligations.* Significant Increase in Credit Risk
153 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The Company determines whether the credit risk of a financial instrument has increased
significantly since initial recognition by comparing the probability of default over the estimated
remaining life of the financial instrument as determined at the balance sheet date with the probability of
default over the estimated remaining life as determined at initial recognition thereby assessing the
relative change in the probability of default over the estimated remaining life of the financial instrument.In determining whether credit risk has increased significantly since initial recognition the
Company considers reasonable and supportable information that is readily available without incurring
undue additional costs or effort including forward-looking information. The information considered by
the Company includes:
A. Whether internal pricing indicators have changed significantly as a result of changes in credit
risk;
B. Adverse changes in business financial or economic conditions that are expected to result in a
significant change in the debtor’s ability to meet its debt obligations;
C. Whether there have been significant changes in the debtor’s actual or expected operating results;
or whether there have been significant adverse changes in the regulatory economic or technological
environment in which the debtor operates;
D. Whether there have been significant changes in the value of collateral securing the debt or in the
quality of guarantees or credit enhancements provided by third parties. These changes are expected to
reduce the debtor’s economic incentive to repay the debt within the contractually specified timeframe or
to affect the probability of default;
E. Whether there has been a significant change in the debtor’s economic incentive to make
payments in accordance with the terms of the contract;
F. Anticipated changes to the loan agreement including whether anticipated breaches of contract
are likely to result in the waiver or modification of contractual obligations the granting of a grace period
an interest rate hike a request for additional collateral or guarantees or other changes to the contractual
framework of the financial instrument;
G. Whether there has been a significant change in the debtor’s expected performance and
repayment behavior;
H. Whether contract payments are past due by 30 days or more.Depending on the nature of the financial instrument the Company assesses whether credit risk has
increased significantly on an individual financial instrument basis or on a portfolio basis. When
conducting an assessment on a portfolio basis the Company may classify financial instruments based on
common credit risk characteristics such as delinquency information and credit ratings.Generally if a financial instrument is past due by more than 30 days the Company determines that
the credit risk has increased significantly. This determination is made unless the Company can obtain
without undue cost or effort reasonable and supportable evidence that although the payment is more
than 30 days past the contractual due date the credit risk has not increased significantly since initial
recognition.
154 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
* Financial Assets That Have Suffered Credit Impairment
At the balance sheet date the Company assesses whether financial assets measured at amortized
cost and debt investments measured at fair value with changes recognized in other comprehensive
income have suffered credit impairment. A financial asset is considered to have suffered credit
impairment when one or more events occur that have an adverse effect on the expected future cash flows
of the financial asset. Evidence that a financial asset is credit-impaired includes the following observable
information:
The issuer or debtor is experiencing significant financial difficulties; The debtor has breached a
contract such as defaulting on or delaying interest or principal payments; The creditor grants the debtor
concessions that would not otherwise be granted based on economic or contractual considerations
related to the debtor’s financial difficulties; It is highly probable that the debtor will enter bankruptcy or
undergo other financial restructuring; The disappearance of an active market for the financial asset due
to the financial difficulties of the issuer or debtor; The purchase or origination of a financial asset at a
significant discount where the discount reflects the occurrence of credit losses.* Presentation of Allowance for Expected Credit Losses
To reflect changes in the credit risk of financial instruments since initial recognition the Company
remeasures expected credit losses at each balance sheet date. Any increase or reversal in the allowance
for expected credit losses resulting from such remeasurement shall be recognized as an impairment loss
or gain in current period profit or loss. For financial assets measured at amortized cost the loss
allowance reduces the book value of the financial asset as presented in the balance sheet; for debt
investments measured at fair value with changes recognized in other comprehensive income the
Company recognizes the loss allowance in other comprehensive income and does not reduce the book
value of the financial asset.* Write-off
If the Company no longer reasonably expects to recover all or part of the contractual cash flows of
a financial asset it shall write down the book balance of that financial asset directly. Such a write-down
constitutes the derecognition of the relevant financial asset. This situation typically arises when the
Company determines that the debtor has no assets or sources of income capable of generating sufficient
cash flows to repay the amount to be written down.If a financial asset that has been written down is subsequently recovered the amount is recognized
as a reversal of an impairment loss in profit or loss for the period in which the recovery occurs.
(6) Transfer of Financial Assets
The transfer of a financial asset refers to either of the following two situations:
A. Transferring the contractual right to receive cash flows from the financial asset to another party;
B. Transferring all or part of the financial asset to another party while retaining the contractual
right to receive cash flows from the financial asset and assuming the contractual obligation to pay those
cash flows to one or more payees.* Derecognition of Transferred Financial Assets
155 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The financial asset is derecognized when substantially all the risks and rewards of ownership of the
financial asset have been transferred to the transferee or when neither substantially all the risks and
rewards of ownership have been transferred nor retained but control over the financial asset has been
relinquished.In determining whether control over the transferred financial asset has been relinquished the
transferee’s actual ability to sell the financial asset is considered. If the transferee is able to unilaterally
sell the transferred financial asset in its entirety to an unrelated third party without any additional
conditions restricting such a sale the Company has relinquished control over that financial asset.When determining whether the transfer of a financial asset meets the criteria for derecognition the
Company focuses on the substance of the transfer.If the transfer of a financial asset as a whole meets the criteria for derecognition the difference
between the following two amounts is recognized in profit or loss for the current period:
A. The book value of the transferred financial asset;
B. The sum of the consideration received from the transfer and the portion of the cumulative fair
value changes previously recognized directly in other comprehensive income that corresponds to the
derecognition (in cases where the transferred financial asset is classified as a financial asset measured at
fair value with changes recognized in other comprehensive income pursuant to Paragraph 18 of
Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of Financial
Instruments).If a partial transfer of a financial asset meets the criteria for derecognition the book value of the
transferred financial asset as a whole shall be allocated between the portion subject to derecognition and
the portion not subject to derecognition (in which case the retained service asset is treated as a
continuing part of the financial asset) based on their respective relative fair values as of the transfer date
and the difference between the following two amounts shall be recognized in profit or loss for the
current period:
A. The book value of the derecognized portion on the derecognition date.B. The sum of the consideration for the portion derecognized and the portion of the cumulative fair
value changes previously recognized in other comprehensive income corresponding to the portion
derecognized (where the transferred financial asset is classified as a financial asset measured at fair
value with changes recognized in other comprehensive income in accordance with Paragraph 18 of
Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of Financial
Instruments).* Continued involvement in transferred financial assets
Where an entity has neither transferred nor retained substantially all the risks and rewards of
ownership of a financial asset and has not relinquished control over that financial asset it shall
recognize the financial asset to the extent of its continued involvement in the transferred financial asset
and recognize a corresponding liability.
156 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The extent of continued involvement in a transferred financial asset refers to the extent to which the
entity bears the risk of or reward for changes in the value of the transferred financial asset.* Continued Recognition of the Transferred Financial Asset
If the entity retains substantially all the risks and rewards of ownership of the transferred financial
asset it shall continue to recognize the transferred financial asset in its entirety and recognize the
consideration received as a financial liability.The financial asset and the related financial liability recognized shall not be offset against each
other. In subsequent accounting periods the entity shall continue to recognize the revenue (or gain)
arising from the financial asset and the expense (or loss) arising from the financial liability.
(7) Offsetting of Financial Assets and Financial Liabilities
Financial assets and financial liabilities are separately presented in the balance sheet without
offsetting. However the net amount after offsetting is presented in the balance sheet if all of the
following conditions are met:
The Company holds a legal right to offset recognized amounts and such right is currently
enforceable;
The Company intends to settle on a net basis or to realize the financial asset and settle the financial
liability simultaneously.For transfers of financial assets that do not meet the criteria for derecognition the transferring party
shall not offset the transferred financial assets against the related liabilities.
(8) Methods for Determining the Fair Value of Financial Instruments
Fair value refers to the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants on the measurement date.The Company measures the fair value of relevant assets or liabilities using prices from the principal
market; where no principal market exists the Company measures the fair value of relevant assets or
liabilities using prices from the most advantageous market. The Company adopts the assumptions that a
market participant would use when pricing the asset or liability to maximize its economic benefit.The principal market refers to the market with the largest trading volume and highest level of
trading activity for the relevant asset or liability; a most favorable market refers to the market in which
after considering transaction and transportation costs the relevant asset can be sold for the highest
amount or the relevant liability can be transferred for the lowest amount.For financial assets or financial liabilities with active markets the Company determines their fair
value using quoted prices in the active market. For financial instruments without active markets the
Company determines their fair value using valuation techniques.For non-financial assets measured at fair value consideration is given to the ability of a market
participant to generate economic benefits by using the asset for its best use or to generate economic
benefits by selling the asset to another market participant who can use it for its best use.* Valuation Techniques
157 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The Company employs valuation techniques that are appropriate under current circumstances and
supported by sufficient available data and other information. The primary valuation techniques used
include the market approach and the cost approach. The Company measures fair value using methods
consistent with one or more of these valuation techniques. When multiple valuation techniques are used
to measure fair value the Company considers the reasonableness of each valuation result and selects the
amount that best represents fair value under current circumstances as the fair value.In applying valuation techniques the Company gives priority to relevant observable inputs and uses
unobservable inputs only when relevant observable inputs are unavailable or cannot be obtained in a
practical manner. Observable inputs are inputs that can be derived from market data. These inputs reflect
the assumptions used by market participants in pricing the relevant assets or liabilities. Unobservable
inputs are inputs that cannot be derived from market data. These inputs are derived from the best
available information regarding the assumptions used by market participants in pricing the relevant
assets or liabilities.* Fair Value Hierarchy
The Company classifies the inputs used in fair value measurements into three levels prioritizing
Level 1 inputs followed by Level 2 inputs and finally Level 3 inputs. Level 1 inputs are unadjusted
quotes for identical assets or liabilities available in active markets as of the measurement date. Level 2
inputs are directly or indirectly observable inputs for the relevant asset or liability other than Level 1
inputs. Level 3 inputs are unobservable inputs for the relevant asset or liability.
12. Notes Receivable
?Applicable □ Not Applicable
Portfolio Categories and Determination Basis for Provision for Bad Debts based on Credit Risk
Characteristics
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
Criteria for Individual Provision for Bad Debts at the Individual Level
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
13. Accounts Receivable
?Applicable □ Not Applicable
Portfolio Categories and Determination Basis for Provision for Bad Debts based on Credit Risk
Characteristics
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
158 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
Criteria for Identifying Individual Provisions for Bad Debts on an Individual-item Basis
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
14. Receivables Financing
?Applicable □ Not Applicable
Portfolio Categories and Determination Basis for Provision for Bad Debts based on Credit Risk
Characteristics
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
Criteria for Identifying Individual Provisions for Bad Debts on an Individual-item Basis
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
15. Other Receivables
?Applicable □ Not Applicable
Portfolio Categories and Determination Basis for Provision for Bad Debts based on Credit Risk
Characteristics
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
Criteria for Identifying Individual Provisions for Bad Debts on an Individual-item Basis
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
16. Inventory
?Applicable □ Not Applicable
Categories of Inventory Issuance Valuation Methods Inventory Counting Systems and
Amortization Methods for Low-value Consumables and Packaging
?Applicable □ Not Applicable
(1) Classification of Inventory
Inventory refers to finished products or goods held by the Company for sale work in progress
products and materials and supplies consumed in the production process or service provision process. It
mainly includes raw materials work in progress products inventory goods and issued goods.
(2) Inventory Valuation Method upon Issuance
159 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The Company uses the weighted average method to value inventory at the end of the month when it
is shipped.
(3) Inventory Counting System
The Company employs a perpetual inventory system conducting physical counts at least once a
year; any inventory surpluses or shortages are recognized in the current year’s profit or loss.
(4) Amortization Methods for Reusable Supplies
* Amortization method for low-value consumables: The one-time write-off method is used upon
issuance.* Amortization method for packaging materials: The one-time write-off method is used upon
issuance.* Amortization method for other reusable supplies: The one-time write-off method is used upon
issuance.Recognition Criteria and Provision Method for Inventory Write down
?Applicable □ Not Applicable
At the balance sheet date inventory is measured at the lower of cost and net realizable value. If the
cost of inventory exceeds its net realizable value an inventory write-down is recognized and included in
profit or loss for the current period.In determining the net realizable value of inventory the entity relies on reliable evidence and
considers factors such as the purpose for which the inventory is held and the impact of events occurring
after the balance sheet date.* For inventory held for direct sale such as finished goods merchandise and materials held for
sale the net realizable value is determined in the normal course of business as the estimated selling price
less estimated selling expenses and related taxes. For inventory held to fulfill a sales contract or service
contract the contract price serves as the basis for measuring net realizable value; if the quantity of
inventory held exceeds the quantity ordered under the sales contract the net realizable value of the
excess inventory is measured based on the general market price. For materials held for sale the market
price serves as the basis for measuring net realizable value.* For inventory consisting of materials requiring further processing the net realizable value is
determined in the normal course of business operations as the estimated selling price of the finished
goods produced less the estimated costs to be incurred until completion estimated selling expenses and
related taxes. If the net realizable value of the finished goods produced is higher than the cost the
material is measured at cost; If a decline in material prices indicates that the net realizable value of the
finished goods will be lower than cost the material is measured at net realizable value and an inventory
allowance is recognized for the difference.* The Company generally recognizes inventory allowances on an item-by-item basis; for
inventories with a large quantity and low unit prices inventory allowances are recognized by inventory
category.
160 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The Company’s provision for inventory write-downs on a group basis is as follows:
Basis for determining
Category Method and Basis for Calculating Net Realizable Value
categories
Age-based impairment Determining the net realizable value of inventory based on
Age Group
groups age
Determine net realizable value based on the estimated selling
price of the finished goods produced less estimated costs to
Impairment groups based Inventory for which
complete estimated selling expenses and related taxes /
on estimated selling estimated selling prices
Determine net realizable value based on the estimated selling
prices can be obtained
price of the inventory less estimated selling expenses and
related taxes
Calculation methods and basis for determining the net realizable value of each age group when
recognizing net realizable value based on inventory age:
Inventory Type Age Group
Calculation of net realizable value
Finished Goods - Feed/Food Amino
Over 1 year 0% of the book balance
Acids
Over 2.5 years 0% of the book balance
Finished Goods - Pharmaceuticals
Raw Materials - Coarse Grains Over 1.5 years 0% of the book balance
Raw Materials - Hardware Over 1 year 0% of the book balance
* If as of the balance sheet date the factors that previously led to the write-down of inventory
have ceased to exist the amount of the write-down shall be reversed and reclassified against the
previously recognized inventory allowance for impairment; the amount of the reversal shall be
recognized in profit or loss for the current period.Portfolio Categories and Determination Basis for the Provision for Inventory Write-Down on a
Portfolio Basis and Determination Basis for Net Realizable Values of Different Categories of
Inventories
□Applicable ?Not Applicable
Calculation Method and Determination Basis for Net Realizable Values of Various Inventory Age
Portfolios Based on Inventory Age
□Applicable ?Not Applicable
17. Contract Assets
?Applicable □ Not Applicable
Method and Criteria for Recognizing Contract Assets
?Applicable □ Not Applicable
The Company presents contract assets or contract liabilities on the balance sheet based on the
relationship between the fulfillment of performance obligations and customer payments. Consideration
to which the Company is entitled for goods transferred or services rendered to customers (and where that
entitlement depends on factors other than the passage of time) is presented as a contract asset.
161 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
For details on the Company’s methodology for determining expected credit losses on contract
assets and the related accounting treatment please refer to Section 5.11 of this document.Contract assets and contract liabilities are presented separately on the balance sheet. Contract assets
and contract liabilities under the same contract are presented on a net basis; if the net amount is a debit
balance it is presented under “Contract Assets” or “Other Non-current Assets” depending on its
liquidity; if the net amount is a credit balance it is presented under “Contract Liabilities” or “OtherNon-current Liabilities” depending on its liquidity. Contract assets and contract liabilities under different
contracts cannot be offset against each other.Portfolio Categories and Determination Basis for Provision for Bad Debts based on Credit Risk
Characteristics
?Applicable □ Not Applicable
For further details see Section 5.11(5) “Impairment of Financial Instruments.”
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
□Applicable ?Not Applicable
Criteria for Identifying Individual Provisions for Bad Debts on an Individual-item Basis
□Applicable ?Not Applicable
18. Non-current Asset or Disposal Portfolio Held for Sale
□Applicable ?Not Applicable
Recognition Criteria and Accounting Treatment Method for Non-current Assets or Disposal
Portfolios Held for Sale
□Applicable ?Not Applicable
Recognition Criteria and Presentation Method for Business Termination
□Applicable ?Not Applicable
19. Long-term Equity Investments
?Applicable □ Not Applicable
The Company’s long-term equity investments include equity investments in which the Company
exercises control or significant influence over the investee as well as equity investments in joint
ventures. Entities over which the Company is able to exercise significant influence are classified as the
Company’s associates.
(1) Basis for determining joint control or significant influence over an investee
Joint control refers to the shared control over an arrangement pursuant to relevant agreements
whereby decisions regarding the arrangement’s activities must be made with the unanimous consent of
the parties sharing control. When determining whether joint control exists one must first assess whether
all parties or a combination of parties collectively control the arrangement. If all parties or a group of
parties must act in concert to decide on the arrangement’s activities it is deemed that all parties or that
group of parties collectively control the arrangement. Second it must be determined whether decisions
regarding the arrangement’s activities require the unanimous consent of the parties collectively
162 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
controlling the arrangement. If two or more groups of parties are capable of collectively controlling an
arrangement this does not constitute joint control. Protective rights are not considered when determining
whether joint control exists.Significant influence means that the investor has the power to participate in the decision-making
regarding the investee’s financial and operating policies but does not have the ability to control or
jointly control the formulation of those policies with other parties. In determining whether significant
influence can be exercised over the investee consideration is given to the voting shares held directly or
indirectly by the investor as well as the impact of current exercisable contingent voting rights held by
the investor and other parties assuming such rights are converted into equity interests in the investee.This includes the impact of currently convertible warrants stock options and convertible bonds issued
by the investee.When the Company holds either directly or indirectly through a subsidiary 20% (inclusive) or
more but less than 50% of the voting shares of an investee it is generally considered to have significant
influence over the investee unless there is clear evidence that under such circumstances the Company
cannot participate in the investee’s production and operational decision-making and therefore does not
exert significant influence.
(2) Determination of Initial Investment Cost
* The cost of a long-term equity investment arising from a business combination shall be
determined in accordance with the following provisions:
A. In a business combination under common control where the combining party provides cash
transfers non-cash assets or assumes liabilities as consideration for the combination the initial cost of
the long-term equity investment shall be the combining party’s share of the book value of the acquiree’s
equity in the ultimate controlling party’s consolidated financial statements as of the combination date.Any difference between the initial cost of the long-term equity investment and the book value of the
cash paid non-cash assets transferred and liabilities assumed shall be recorded in capital surplus; if
capital surplus is insufficient to absorb such difference the remaining amount shall be recorded in
retained earnings;
B. In a business combination under common control where the combining party issues equity
securities as consideration for the combination the initial cost of the long-term equity investment is
determined on the combination date based on the combining party’s share of the book value of the
acquiree’s equity as reported in the ultimate controlling party’s consolidated financial statements. The
total par value of the shares issued shall be recognized as share capital. The difference between the
initial investment cost of the long-term equity investment and the total par value of the shares issued
shall be recorded as an adjustment to capital surplus; if capital surplus is insufficient to absorb the
difference retained earnings shall be adjusted;
C. For business combinations not under common control the initial investment cost of the
long-term equity investment is determined as the fair value of the assets given up liabilities incurred or
assumed and equity securities issued to obtain control of the acquiree as of the acquisition date. The
163 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
acquirer recognizes audit legal valuation and other professional fees as well as other related
administrative expenses incurred in connection with the business combination in profit or loss in the
period in which they are incurred.* Except for long-term equity investments arising from business combinations the cost of
long-term equity investments acquired through other means shall be determined in accordance with the
following provisions:
A.For long-term equity investments acquired via cash payment the initial investment cost is the
actually paid purchase price. It encompasses expenses directly associated with the acquisition of the
long-term equity investments as well as taxes and other necessary expenditures.B. For long-term equity investments acquired through the issuance of equity securities the initial
investment cost is the fair value of the equity securities issued.C. For long-term equity investments acquired through an exchange of non-monetary assets if the
exchange has commercial substance and the fair value of the assets received or given up can be
measured reliably the initial investment cost shall be the fair value of the assets given up plus related
taxes; the difference between the fair value and the book value of the assets given up shall be recognized
in profit or loss for the current period; If the non-monetary asset exchange does not simultaneously meet
both of the above conditions the initial investment cost shall be the book value of the assets given up
and related taxes.D. For long-term equity investments acquired through debt restructuring the book value shall be
determined based on the fair value of the debt waived and other costs directly attributable to the asset
such as taxes. The difference between the fair value and the book value of the debt waived shall be
recognized in profit or loss for the current period.
(3) Subsequent Measurement and Profit/Loss Recognition
The Company accounts for long-term equity investments in entities over which it has control using
the cost method; long-term equity investments in associates and joint ventures are accounted for using
the equity method.* Cost Method
For long-term equity investments accounted for using the cost method the cost of the investment is
adjusted upon additional investments or the recovery of investments; cash dividends or profits declared
by the investee are recognized as investment income for the current period.* Equity Method
For long-term equity investments accounted for using the equity method the general accounting
treatment is as follows:
If the cost of the Company’s long-term equity investment exceeds the Company’s share of the fair
value of the investee’s identifiable net assets at the time of investment the initial cost of the long-term
equity investment is not adjusted; if the initial cost of the long-term equity investment is less than the
Company’s share of the fair value of the investee’s identifiable net assets at the time of investment the
164 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
difference is recognized in profit or loss for the current period and the cost of the long-term equity
investment is adjusted accordingly.The Company recognizes investment income and other comprehensive income based on its share of
the investee’s net profit or loss and other comprehensive income and simultaneously adjusts the book
value of the long-term equity investment; The Company calculates its share of the investee’s declared
profits or cash dividends and reduces the book value of the long-term equity investment accordingly;
other changes in the investee’s equity excluding net profit or loss other comprehensive income and
profit distributions are recognized by adjusting the book value of the long-term equity investment and
recording the adjustment in equity. When recognizing the Company’s share of the investee’s net profit
or loss the investee’s net profit is adjusted based on the fair value of the investee’s identifiable net assets
at the time of investment. If the investee’s accounting policies or reporting periods differ from those of
the Company the investee’s financial statements shall be adjusted in accordance with the Company’s
accounting policies and reporting periods and investment income and other comprehensive income shall
be recognized accordingly. Unrealized gains or losses arising from internal transactions between the
Company and its associates and joint ventures are eliminated to the extent attributable to the Company
based on its ownership interest and investment gains or losses are recognized on this basis. Unrealized
losses arising from internal transactions between the Company and its investees that constitute asset
impairment losses shall be recognized in full.Where an entity is able to exercise significant influence over or exercise joint control over an
investee—but does not have control—due to additional investments or other reasons the initial
investment cost for accounting under the equity method shall be the sum of the fair value of the
previously held equity investment and the cost of the new investment. If the previously held equity
investment was classified as an investment in other equity instruments the difference between its fair
value and book value as well as the cumulative gains or losses previously recognized in other
comprehensive income shall be reclassified from other comprehensive income to retained earnings in
the period in which the investment is reclassified to the equity method.If joint control or significant influence over an investee is lost due to the disposal of a portion of the
equity investment or other reasons the remaining equity interest after the disposal shall be measured at
fair value and the difference between its fair value and book value as of the date of loss of joint control
or significant influence shall be recognized in profit or loss for the current period. Other comprehensive
income previously recognized in respect of the equity investment under the equity method shall be
accounted for on the same basis as the direct disposal of assets or liabilities by the investee when the
entity ceases to apply the equity method.
(4) Equity Investments Held for Sale
For remaining equity investments not classified as held-for-sale assets the equity method is
applied.For equity investments in associates or joint ventures that have been classified as held for sale but
no longer meet the criteria for classification as held-for-sale assets retrospective adjustments using the
165 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
equity method are applied from the date of classification as held-for-sale assets. Financial statements for
the period during which the investments were classified as held for sale are adjusted accordingly.
(5) Impairment Testing Methods and Recognition of Impairment Losses
For investments in subsidiaries associates and joint ventures the methods for recognizing asset
impairment are described in Section V 27 of this document.
20. Investment Properties
Not Applicable
21. Fixed Assets
(1). Recognition Conditions
?Applicable □ Not Applicable
Fixed assets are recognized at their actual cost at the time of acquisition when all of the following
conditions are met:
* Economic benefits related to the fixed assets are likely to flow into the enterprise.* The cost of the fixed assets can be reliably measured.Subsequent expenditures related to fixed assets are recorded in the cost of fixed assets if they meet
the recognition conditions for fixed assets; or recorded in the profit or loss for the current period if they
do not meet the recognition conditions for fixed assets.
(2). Depreciation Method
?Applicable □ Not Applicable
Annual
Residual Value
Category Depreciation Method Depreciation Period Depreciation Rate
Rate (%)
(%)
Housing and Structures 20-40
Housing and
Straight-Line Method years 0-5 2.375-10.00
Structures
Architectures 10-20 years
Machinery and
Straight-Line Method 3-20 years 0-5 4.75-33.33
Equipment
Transportation
Straight-Line Method 3-5 years 0-5 19.00-33.33
Tools
Office and Other
Straight-Line Method 3-15 years 0-5 6.33-33.33
Equipment
For fixed assets for which an impairment allowance has already been recognized the amount of the
impairment allowance is deducted when calculating depreciation.At the end of each year the Company reviews the useful lives estimated net salvage values and
depreciation methods of its fixed assets. If the estimated useful life differs from the original estimate the
useful life of the fixed asset is adjusted.
166 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
22. Construction in Progress
?Applicable □ Not Applicable
(1) Construction in progress is accounted for by project.
(2) Criteria and timing for transferring construction in progress to fixed assets
The entry value of a construction-in-progress project is determined by the total expenditures
incurred prior to the asset reaching its intended usable condition. This includes construction costs the
original cost of machinery and equipment other necessary expenditures incurred to bring the
construction-in-progress to its intended usable condition as well as borrowing costs incurred for loans
specifically raised for the project and borrowing costs incurred for general borrowings used for the
project prior to the asset reaching its intended usable condition. The Company transfers construction in
progress to fixed assets upon completion of installation or construction and attainment of the intended
usable condition. For fixed assets that have reached their intended usable condition but for which final
settlement has not yet been completed the Company will transfer them to fixed assets at an estimated
value based on the project budget cost estimate or actual project cost effective from the date they reach
their intended usable condition. Depreciation will be accrued in accordance with the Company’s fixed
asset depreciation policy. Upon completion of the final settlement the original estimated value will be
adjusted to reflect the actual cost; however the depreciation already accrued will not be adjusted.
23. Borrowing Costs
?Applicable □ Not Applicable
(1) Recognition criteria and capitalization period for borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition
construction or production of assets that meet the criteria for capitalization shall be capitalized and
included in the cost of the relevant assets when all of the following conditions are met:
* Expenditure for the asset has been incurred;
* Borrowing costs have been incurred;
* The necessary acquisition construction or production activities to bring the asset to its intended
usable or saleable state have commenced.Other borrowing costs discounts or premiums and foreign exchange differences are recognized in
profit or loss in the period in which they occur.If the construction or production of an asset eligible for capitalization is abnormally interrupted
and the interruption lasts for more than three consecutive months the capitalization of borrowing costs
shall be suspended.When the construction or production of an asset eligible for capitalization reaches a stage where it
is ready for use or sale the capitalization of borrowing costs shall cease; borrowing costs incurred
thereafter shall be recognized as expenses in the period in which they are incurred.
(2) Capitalization Rate for Borrowing Costs and Method for Calculating the Capitalized Amount
167 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Where a specific loan is borrowed for the acquisition construction or production of assets that
meet the criteria for capitalization the capitalized amount of interest expenses on the specific loan shall
be determined as the actual interest expenses incurred during the current period less any interest income
earned from depositing unused loan funds in a bank or investment income earned from temporary
investments.Where general loans are used to acquire construct or produce assets that meet the criteria for
capitalization the amount of interest on the general loan to be capitalized shall be calculated by
multiplying the weighted average of asset expenditures exceeding the amount of the specific loan by the
capitalization rate of the general loan used. The capitalization rate shall be determined based on the
weighted average interest rate of the general loan.
24. Biological Assets
□Applicable ?Not Applicable
25. Oil and Gas Assets
□Applicable ?Not Applicable
26. Intangible Assets
(1). Useful life and its Determination Basis Estimation Amortization Method or Review
Procedures
?Applicable □ Not Applicable
(1) Valuation Method for Intangible Assets
Intangible assets are recorded at their actual cost at the time of acquisition.
(2) Useful Lives and Amortization of Intangible Assets
* Estimation of the useful lives of intangible assets with finite useful lives:
Item Estimated Useful Life Basis
Land Use Rights 46-50 years Statutory rights
The useful life is determined based on the period during which
Software 2-10 years the asset is expected to generate economic benefits for the
Company
The useful life is determined based on the period during which
Licenses for Patent Usage 5 years the asset is expected to generate economic benefits for the
Company
The useful life is determined based on the period during which
Rights to use drug approvals 30years the asset is expected to generate economic benefits for the
Company
At the end of each year the Company reviews the useful lives and amortization methods of
intangible assets with finite useful lives. Upon review the useful lives and amortization methods of
intangible assets as of the end of the current period remain unchanged from previous estimates.
168 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
* Intangible assets for which the period over which the entity will derive economic benefits
cannot be estimated are treated as having an indefinite useful life. For intangible assets with an indefinite
useful life the Company reviews their useful lives at the end of each fiscal year. If the useful life
remains indefinite after such review an impairment test is performed as of the balance sheet date.* Amortization of Intangible Assets
For intangible assets with finite useful lives the Company determines their useful lives upon
acquisition and amortizes them systematically and reasonably using the straight-line method over their
useful lives. The amortization expense is recognized in current period profit or loss or included in the
cost of the related asset depending on the source of benefit. The specific amount to be amortized is the
cost of the asset less its estimated residual value. For intangible assets for which an impairment loss has
been recognized the cumulative amount of the impairment loss provision must also be deducted. For
intangible assets with finite useful lives the residual value is assumed to be zero except in the following
circumstances: a third party has committed to purchase the intangible asset at the end of its useful life or
information regarding the estimated residual value is available from an active market and it is probable
that such a market will exist at the end of the intangible asset’s useful life.Intangible assets with indefinite useful lives are not amortized. At the end of each fiscal year the
useful life of intangible assets with indefinite useful lives is reviewed; if there is evidence that the useful
life of an intangible asset is finite its useful life is estimated and the asset is amortized systematically
and on a reasonable basis over its estimated useful life.
(2). Aggregation Scope of Research and Development Expenditures and Relevant Accounting
Treatment Methods
?Applicable □ Not Applicable
The Company classifies all expenses directly related to its research and development activities as
R&D expenses including employee compensation for R&D personnel direct input costs depreciation
expenses amortization of intangible assets expenses for outsourced research and development and
other expenses.
1. Specific criteria for differentiating research and development phases in the Company’s internal
research and development projects
* The Company classifies activities related to the preparation of materials and other aspects of
future development activities as the research phase and expenses incurred during the research phase of
intangible assets are recognized in profit or loss as incurred.* Development activities undertaken after the Company has completed the research phase are
classified as the development phase.
2. Specific Criteria for Capitalizing Development Phase Expenditures
Development phase expenditures may be recognized as intangible assets only if they meet all of the
following criteria:
A. Completion of the intangible asset to enable its use or sale is technically feasible;
169 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
B. There is an intention to complete the intangible asset and use or sell it;
C. The intangible asset generates economic benefits either by demonstrating the presence of a
market for products produced using the asset or by demonstrating the presence of a market for the asset
itself or by demonstrating its usefulness if it will be used internally;
D. There are adequate technical financial and other resources to complete the development of the
intangible asset and the Company is able to use or sell it;
E. Expenditures attributable to the development stage of the intangible asset can be reliably
measured.
27. Impairment of Long-termAssets
?Applicable □ Not Applicable
Impairment of assets such as long-term equity investments in subsidiaries associates and joint
ventures; investment property measured using the cost model; property plant and equipment;
construction in progress; right-of-use assets; intangible assets; and goodwill (excluding inventory
investment property measured at fair value deferred tax assets and financial assets) is determined as
follows:
At the balance sheet date the Company assesses whether there are any indications that an asset may
be impaired. If such indications exist the Company estimates the asset’s recoverable amount and
performs an impairment test. Goodwill arising from business combinations intangible assets with
indefinite useful lives and intangible assets not yet ready for use are tested for impairment annually
regardless of whether there are indications of impairment.Recoverable amount is determined as the higher of an asset’s fair value less costs of disposal and
the present value of its estimated future cash flows. The Company estimates the recoverable amount on
an individual asset basis; where it is not practicable to estimate the recoverable amount of an individual
asset the recoverable amount is determined on the basis of the asset group to which the asset belongs.The identification of an asset group is based on whether the primary cash inflows generated by the asset
group are independent of the cash inflows from other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value the Company
writes down the book value to the recoverable amount. The amount of the write-down is recognized in
profit or loss for the current period and a corresponding impairment loss is recognized.For the purpose of goodwill impairment testing the book value of goodwill arising from a business
combination shall be allocated to the relevant asset groups using a reasonable method from the
acquisition date; where it is not practicable to allocate the goodwill to the relevant asset groups it shall
be allocated to the relevant group of asset groups. The relevant asset group or group of asset groups is an
asset group or group of asset groups that benefits from the synergies of the business combination and
does not exceed the reporting segments identified by the Company.When performing impairment tests if there are indications of impairment for an asset group or a
portfolio of asset groups related to goodwill the impairment test is first conducted on the asset group or
portfolio of asset groups that do not include goodwill to calculate the recoverable amount and recognize
170 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
the corresponding impairment loss. Then the impairment test is performed on the asset group or
portfolio of asset groups that include goodwill comparing their book value with the recoverable amount;
if the recoverable amount is lower than the book value an impairment loss on goodwill is recognized.Once an impairment loss on an asset is recognized it is not reversed in subsequent accounting
periods.
28. Long-term Deferred Expenses
?Applicable □ Not Applicable
Long-term Deferred Expenses represent various expenses that have been incurred by the Company
and should be borne by the current and future periods with an amortization period of more than one
year.The Company's long-term deferred expenses are amortized on a straight-line basis over the benefit
period. The amortization periods for each type of expense are as follows:
Items Amortization Period
Field usage rights 20 years
Housing Subsidies 9 years
Employee Rewards 5 years
Production Materials 1.5-5 years
Leasehold Improvements 5 years
One-time expansion fee 11.77-21.33 years
29. Contract Liabilities
?Applicable □ Not Applicable
The Company’s obligation to transfer goods or provide services to customers in exchange for
consideration received or receivable from them is recognized as a contract liability.
30. Employee Compensation
(1). Method for Accounting Treatment of Short-term Compensation
?Applicable □ Not Applicable
* Basic employee compensation (salaries bonuses allowances and subsidies)
The Company recognizes short-term compensation as a liability and records it in current period
profit or loss during the accounting period in which the employees render their services unless other
accounting standards require or permit its inclusion in the cost of assets.* Employee Benefits
Employee benefits incurred by the Company are recognized in current period profit or loss or
included in the cost of the relevant assets at the time they are incurred based on the actual amount
incurred. Employee benefits in the form of non-monetary benefits are measured at fair value.
171 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
* Social insurance premiums (including medical work-related injury and maternity insurance
premiums) and housing provident fund contributions as well as union dues and employee education
funds
Social insurance premiums (including medical work-related injury and maternity insurance
premiums) and housing provident fund contributions paid by the Company on behalf of employees as
well as union dues and employee education funds allocated in accordance with regulations are
recognized as employee compensation during the accounting period in which the employees provide
services. The amounts are calculated based on the prescribed accrual bases and rates and corresponding
liabilities are recognized with the amounts included in current period profit or loss or the cost of related
assets.* Short-term paid leave
The Company recognizes employee compensation related to accrued paid leave when employees
render service that increases their future entitlement to paid leave measuring it at the expected future
payment amount based on the accrued unused entitlement. The Company recognizes employee
compensation related to non-accrued paid leave in the accounting period in which the employee actually
takes the leave.* Short-Term Profit-Sharing Plans
The Company recognizes the related employee benefit liability for a profit-sharing plan if all of the
following conditions are met:
A. The entity has a legal or constructive obligation to pay employee benefits as a result of past
events;
B. The amount of the employee benefit liability arising from the profit-sharing plan can be reliably
estimated.
(2). Method for Accounting Treatment of Post-Employment Benefits
?Applicable □ Not Applicable
* Defined Contribution Plans
During the accounting period in which employees render services to the Company the Company
recognizes as a liability the amount due under a defined contribution plan and includes it in current
profit or loss or in the cost of the related asset.If under the defined contribution plan the Company does not expect to pay the full amount of the
contribution liability within twelve months after the end of the reporting period in which the employees
render the related services the Company measures the total contribution liability as a discounted amount
using an appropriate discount rate (determined based on the market yield of government bonds or
high-quality corporate bonds in an active market that match the term and currency of the defined
contribution plan obligation as of the balance sheet date).* Defined Benefit Plans
A. Determining the Present Value of Defined Benefit Plan Obligations and Current Service Cost
172 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Under the projected unit credit method the Company measures the obligations arising from defined
benefit plans and determines the periods to which those obligations relate by making estimates of
relevant demographic and financial variables using unbiased and consistent actuarial assumptions. The
Company discounts the obligations arising from the defined benefit plan using an appropriate discount
rate (determined based on the market yields of government bonds or high-quality corporate bonds in
active markets that match the term and currency of the defined benefit plan obligations as of the balance
sheet date) to determine the present value of the defined benefit plan obligations and the current service
cost.B. Recognition of a Defined Benefit Plan’s Net Liability or Net Asset
If a defined benefit plan holds assets the Company recognizes the deficit or surplus resulting from
the present value of the defined benefit plan’s obligations minus the fair value of the plan’s assets as a
defined benefit plan’s net liability or net asset.If a defined benefit plan has a surplus the Company measures the defined benefit plan’s net asset as
the lower of the plan’s surplus and the asset ceiling.C. Determining the Amount to be Included in the Cost of Assets or in Profit or Loss for the Period
Service costs including current service costs past service costs and settlement gains or losses. Of
these all service costs other than current service costs required or permitted by other accounting
standards to be included in the cost of assets are recognized in profit or loss for the period.Net interest on the net liability or net asset of a defined benefit plan including interest income on
plan assets interest expense on defined benefit plan obligations and interest arising from the asset
ceiling is recognized in current profit or loss.D. Determining the Amount to be Recognized in Other Comprehensive Income
Changes arising from the remeasurement of the net liability or net asset of a defined benefit plan
include:
(a) Actuarial gains or losses which are increases or decreases in the present value of the defined
benefit obligation previously measured resulting from adjustments to actuarial assumptions and
experience;
(b) returns on plan assets net of the amount included in the net interest on the defined benefit
plan’s net liability or net asset;
(c) changes in the effect of the asset ceiling net of the amount included in the net interest on the
defined benefit plan’s net liability or net asset.Changes in the net liability or net asset of the defined benefit plan resulting from the
remeasurement described above are recognized directly in other comprehensive income and may not be
reclassified to profit or loss in subsequent accounting periods. Upon termination of the original defined
benefit plan the Company transfers the entire amount previously recognized in other comprehensive
income to retained earnings within the scope of equity.
(3). Method for Accounting Treatment of Termination Benefits
?Applicable □ Not Applicable
173 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
When the Company provides termination benefits to employees it recognizes the employee benefit
liability arising from such termination benefits and includes it in current period profit or loss on the
earlier of the following two dates:
* When the Company cannot unilaterally withdraw the termination benefits offered in connection
with a plan to terminate employment relationships or a proposed workforce reduction;
* When the entity recognizes costs or expenses related to a restructuring involving the payment of
termination benefits.If termination benefits are not expected to be settled in full within twelve months after the end of
the reporting period the amount of the termination benefits shall be discounted using an appropriate
discount rate (determined based on the market yield of government bonds or high-quality corporate
bonds in an active market that match the term and currency of the defined benefit plan obligation as of
the balance sheet date) and the accrued employee benefits shall be measured at the discounted amount.
(4). Method for Accounting Treatment of Other Long-term Employee Benefits
?Applicable □ Not Applicable
* Meeting the criteria for establishing a defined contribution plan
For other long-term employee benefits provided by the Company to employees that meet the
criteria for establishing a defined contribution plan the total amount required to be contributed is
measured at its present value and recognized as an accrued employee benefit liability.* Meeting the criteria for establishing a defined benefit plan
At the end of the reporting period the Company recognizes employee compensation costs arising
from other long-term employee benefits as the following components:
A. Service cost;
B. Net interest on the net liability or net asset for other long-term employee benefits;
C. Changes arising from the remeasurement of the net liability or net asset for other long-term
employee benefits.To simplify the related accounting treatment the total net amount of the above items is included in
current profit or loss or in the cost of the related assets.
31. Estimated Liabilities
?Applicable □ Not Applicable
(1) Recognition Criteria for Estimated Liabilities
The Company recognizes the estimated Liabilities if the obligation associated with the contingent
event meets all of the following criteria:
* The obligation is a present obligation of the Company;
* It is probable that the settlement of the obligation will result in an outflow of economic benefits
from the Company;
* The amount of the obligation can be reliably measured.
(2) Measurement Method for Estimated Liabilities
174 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Estimated liabilities are initially measured at the best estimate of the expenditure required to settle
the present obligation taking into account factors such as the risks uncertainties and the time value of
money related to the contingencies. At each balance sheet date the book value of the estimated liabilities
is reviewed. If there is conclusive evidence indicating that the book value does not reflect the current
best estimate the book value is adjusted to the current best estimate.
32. Share-based Payment
?Applicable □ Not Applicable
(1) Types of Share-based Payment
The share-based payment by the Company is categorized into share-based payment settled by cash
and share-based payment settled by equity.
(2) Method for Determining Fair Value of Equity Instruments
* For shares granted to employees their fair value is measured based on the market price of the
Company’s shares adjusted to reflect the terms and conditions under which the shares were granted
(excluding vesting conditions other than market conditions). * For stock options granted to employees
it is often difficult to obtain their market price. If there are no traded options with similar terms and
conditions the Company selects an appropriate option pricing model to estimate the fair value of the
options granted.
(3) Basis for Determining the Best Estimate of Exercisable Equity Instruments
At each balance sheet date during the vesting period the Company makes a best estimate of the
number of equity instruments expected to be exercised by adjusting the estimated number of such
instruments based on subsequent information such as changes in the number of eligible employees as it
becomes available.
(4) Accounting Treatment for Share-Based Payment Plans
Cash-settled Share-Based Payments
* Cash-settled share-based payments that vest immediately upon grant are recognized as an
expense or cost at the fair value of the liability incurred by the Company on the grant date with a
corresponding increase in liabilities. The fair value of the liability is remeasured at each balance sheet
date prior to settlement and on the settlement date with any changes recognized in profit or loss.* For cash-settled share-based payments that vest only upon completion of a vesting period or the
achievement of specified performance conditions the services received during the vesting period are
recognized as costs or expenses and a corresponding liability at the fair value of the liability assumed by
the Company based on the best estimate of vesting at each balance sheet date during the vesting period.Equity-settled Share-based Payment
* An equity-settled share-based payment granted in exchange for employee services that is
immediately exercisable is recognized as a cost or expense at the fair value of the equity instrument on
the grant date with a corresponding increase in capital surplus.* For equity-settled share-based payments in exchange for employee services that become
exercisable only after the completion of a vesting period or the satisfaction of specified performance
175 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
conditions the services received during the vesting period are recognized as cost or expense and capital
surplus at each balance sheet date during the vesting period based on the best estimate of the number of
equity instruments that will become exercisable using the fair value of the equity instruments at the
grant date.
(5) Accounting Treatment for Modifications to Share-Based Payment Plans
When the Company modifies a share-based payment plan if the modification increases the fair
value of the equity instruments granted the increase in services received is recognized in proportion to
the increase in the fair value of the equity instruments; if the modification increases the number of equity
instruments granted the fair value of the additional equity instruments is recognized as an increase in
services received. The increase in the fair value of the equity instruments refers to the difference
between the fair value of the equity instruments before and after the modification as of the modification
date. If the modification reduces the total fair value of the equity-settled payment or modifies the terms
and conditions of the equity-settled payment plan in a manner that is otherwise disadvantageous to
employees the Company continues to account for the services received as if the change had never
occurred unless the Company cancels some or all of the equity instruments already granted.
(6) Accounting for the Termination of Share-Based Payment Plans
If an equity instrument granted is canceled or settled during the vesting period (except for
cancellations due to failure to meet vesting conditions) the Company:
* Treats the cancellation or settlement as an accelerated vesting event and immediately recognizes
the amount that would otherwise have been recognized over the remaining vesting period;
* Any payments made to employees upon cancellation or settlement shall be treated as a
repurchase of equity; the portion of the repurchase payment that exceeds the fair value of the equity
instrument on the repurchase date shall be recognized as an expense in the current period.If the Company repurchases equity instruments that have become exercisable by its employees it
shall reduce its equity; the portion of the repurchase payment that exceeds the fair value of the equity
instrument on the repurchase date shall be recognized in profit or loss for the current period.
33. Preferred Shares Perpetual Bonds and Other Financial Instruments
□Applicable ?Not Applicable
34. Revenue
(1). Accounting Policies for Disclosure of Revenue Recognition and Measurement by Business
Type
?Applicable □ Not Applicable
(1) General Principles
Revenue is the total inflow of economic benefits arising from the Company’s ordinary activities
that results in an increase in shareholders’ equity and is not attributable to contributions of capital by
shareholders.
176 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The Company recognizes revenue when it has satisfied the performance obligations under a
contract that is when the customer obtains control of the relevant goods. Obtaining control of the
relevant goods means having the ability to direct the use of the goods and derive substantially all of the
economic benefits from them.If a contract contains two or more performance obligations the Company allocates the transaction
price to each performance obligation at the contract date based on the relative proportion of the separate
selling prices of the goods or services promised under each performance obligation and measures
revenue based on the transaction price allocated to each performance obligation.The transaction price is the amount of consideration to which the Company expects to be entitled in
exchange for the transfer of goods or services to a customer excluding amounts collected on behalf of
third parties. When determining the transaction price of a contract if variable consideration exists the
Company determines the best estimate of the variable consideration based on the expected value or the
most likely amount and includes it in the transaction price up to an amount that is unlikely to result in a
material reversal of the cumulative revenue recognized when the related uncertainty is resolved. If a
contract contains a significant financing component the Company determines the transaction price
based on the amount payable in cash by the customer upon obtaining control of the goods. The
difference between this transaction price and the contract consideration is amortized over the contract
period using the effective interest method. The Company disregards the financing component if the
interval between the transfer of control and the customer’s payment of the price does not exceed one
year.If any of the following conditions are met the performance of the entity’s performance obligations
is deemed to occur over a period of time; otherwise it is deemed to occur at a point in time:
* The customer obtains and consumes the economic benefits resulting from the entity’s
performance at the same time the entity performs;
* The customer is able to control the goods in the process of being produced during the
Company’s performance;
* The goods produced during the Company’s performance have a non-substitutable use and the
Company has the right to collect payment for the portion of performance completed to date throughout
the term of the contract.For performance obligations satisfied over a period of time the Company recognizes revenue over
that period based on the stage of completion unless the stage of completion cannot be reasonably
determined. The Company determines the stage of completion for the provision of services using the
input method (or output method). When the stage of completion cannot be reasonably determined if the
costs already incurred by the Company are expected to be recovered revenue is recognized based on the
amount of costs already incurred until the stage of completion can be reasonably determined.For performance obligations satisfied at a specific point in time the Company recognizes revenue
when the customer obtains control of the relevant goods. In determining whether the customer has
obtained control of the goods or services the Company considers the following indicators:
177 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
* The Company has a present right to receive payment for the goods or services meaning the
customer has a present obligation to pay for them;
* The Company has transferred legal title to the goods to the customer meaning the customer has
acquired legal title to the goods;
* The Company has transferred physical possession of the goods to the customer meaning the
customer has taken physical possession of the goods;
* The Company has transferred the significant risks and rewards of ownership of the goods to the
customer meaning the customer has assumed the significant risks and rewards of ownership of the
goods;
* The customer has accepted the goods.
(2) Specific Methods
The Company’s specific revenue recognition methods are as follows:
The Company's business of selling products such as food flavor and texture optimization products
animal nutrition amino acids and human medical amino acids typically only involves the obligation to
transfer goods. The revenue recognition policy primarily makes a distinction between domestic and
export customer classifications. The specific methods for revenue recognition are as follows:
Domestic Sales: According to the contracts or orders signed with the customer revenue realization
is recognized by the Company at the moment when goods are delivered to the customer and the
customer takes control over the goods upon receipt.Exports: After goods are shipped the timing of revenue recognition is determined based on the
specific trade terms:
* Under FOB FCA CIF CFR CIP and CPT terms control of the goods is transferred once the
goods have been loaded onto the vessel and cleared for export. The company recognizes revenue based
on the export date indicated on the customs declaration.* Under DAP and DDP terms revenue is recognized when the goods have been cleared for export
customs formalities have been completed and the customs declaration has been obtained and the goods
have been delivered to the destination and accepted by the customer.
(2). Different Revenue Recognition and Measurement Methods for Similar Businesses with
Different Operating Models
□Applicable ?Not Applicable
35. Contract Costs
?Applicable □ Not Applicable
Contract costs are classified into Contract Performance Costs and Contract Obtaining Costs.Costs incurred by the Company in fulfilling a contract are recognized as an asset as Contract
Performance Costs when all of the following conditions are met:
178 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
* The cost is directly related to a contract either currently or expected to be obtained including
direct labor direct materials manufacturing expenses (or similar expenses) costs explicitly borne by the
customer and other costs incurred solely due to the contract;
* The cost increases the resources available for the Company to fulfill its performance obligations;
* The cost is expected to be recoverable.The Company recognizes as an asset the incremental costs incurred to secure a contract provided
that such costs are expected to be recovered.Assets related to contract costs are amortized on the same basis as the revenue from the goods or
services to which they relate; however for contract obtaining costs with an amortization period of one
year or less the Company recognizes them in profit or loss in the period in which they are incurred.For assets related to contract costs if the book value exceeds the sum of the following two items
the Company will recognize an impairment loss on the excess amount and further consider whether to
recognize a provision for losses related to the onerous contract:
* The remaining consideration expected to be received from the transfer of the goods or services
related to the asset;
* The estimated costs to be incurred in transferring the related goods or services.If an impairment loss provision for the aforementioned assets is subsequently reversed the book
value of the asset after the reversal shall not exceed the book value that the asset would have had on the
date of reversal had no impairment loss provision been recognized.Contract performance costs recognized as assets are classified under “Inventories” if the
amortization period upon initial recognition does not exceed one year or one normal operating cycle; if
the amortization period upon initial recognition exceeds one year or one normal operating cycle they are
classified under “Other Non-current Assets.”
Contract obtaining costs recognized as assets are classified under “Other Current Assets” if the
amortization period at initial recognition does not exceed one year or one normal operating cycle and
under “Other Non-current Assets” if the amortization period at initial recognition exceeds one year or
one normal operating cycle.
36. Government Grants
?Applicable □ Not Applicable
(1) Recognition of Government Grants
Government grants may be recognized only if all of the following conditions are met:
* The Company is able to satisfy the conditions attached to the government grant;
* The Company is able to receive the government grant.
(2) Measurement of Government Grants
Government grants that are monetary assets are measured at the amount received or receivable.Government grants that are non-monetary assets are measured at fair value; if fair value cannot be
reliably determined they are measured at a nominal amount of 1 yuan.
(3) Accounting Treatment of Government Grants
179 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
* Asset-Related Government Grants
Government grants received by the Company for the purpose of acquiring constructing or
otherwise forming long-lived assets are classified as asset-related government grants. Asset-related
government grants are recognized as deferred income and are amortized to profit or loss over the useful
life of the related asset using a reasonable and systematic method. Government grants measured at their
nominal amount are recognized directly in profit or loss for the current period. If the related asset is sold
transferred scrapped or destroyed before the end of its useful life the unamortized balance of the
related deferred income is transferred to profit or loss in the period of the asset’s disposal.* Government Grants Related to Income
Government grants other than those related to assets are classified as government grants related to
income. Government grants related to income are accounted for in accordance with the following
provisions depending on the circumstances:
If the grant is intended to compensate for the Company’s related costs expenses or losses in future
periods it is recognized as deferred income and is included in current period profit or loss in the period
in which the related costs expenses or losses are recognized;
If the grant is intended to compensate for the Company’s related costs expenses or losses that have
already been incurred it is directly included in current period profit or loss.For government grants that include both asset-related and income-related components the
components shall be distinguished and accounted for separately; if such distinction is difficult to make
the grant shall be classified in its entirety as an income-related government grant.Government grants related to the Company’s ordinary activities shall be recognized as other
income in accordance with the economic substance of the transaction. Government grants unrelated to
the Company’s ordinary activities shall be recognized as non-operating income or expenses.* Interest Subsidies on Policy-Based Preferential Loans
When the government disburses interest subsidy funds to the lending bank and the lending bank
provides a loan to the Company at a policy-based preferential interest rate the loan is recorded at the
actual amount received and the related borrowing costs are calculated based on the principal amount
and the policy-based preferential interest rate.When the government disburses interest subsidy funds directly to the Company the Company
offsets the corresponding interest subsidy against the related borrowing costs.* Return of Government Grants
When a previously recognized government grant must be returned if the grant was used to reduce
the book value of a related asset at the time of initial recognition the book value of the asset is adjusted;
if there is a balance of deferred income related to the grant the book amount of the deferred income is
reduced and any excess is recognized in profit or loss for the current period; in all other cases the
amount is recognized directly in profit or loss for the current period.
180 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
37. Deferred Income Tax Assets / Deferred Income Tax Liabilities
?Applicable □ Not Applicable
The Company generally recognizes and measures the tax effects of taxable temporary differences
or deductible temporary differences as deferred income tax liabilities or deferred income tax assets
respectively using the balance sheet liability method based on temporary differences between the book
value of assets and liabilities at the balance sheet date and their tax bases. The Company does not
discount deferred income tax assets or deferred income tax liabilities.
(1) Recognition of Deferred Income Tax Assets
For deductible temporary differences tax loss carryforwards and tax credits that can be carried
forward to future years the tax effect is calculated using the income tax rate expected to apply in the
period of reversal and this amount is recognized as a deferred income tax asset to the extent that it is
probable the Company will have future taxable income against which the deductible temporary
differences tax loss carryforwards and tax credits can be utilized.For transactions or events that have the following characteristics the income tax effect of a
deductible temporary difference arising from the initial recognition of an asset or liability shall not be
recognized as a deferred income tax asset:
A. The transaction is not a business combination;
B. At the time of the transaction it affects neither accounting profit nor taxable income (or
deductible losses).However this exemption from the initial recognition of deferred income tax liabilities and deferred
income tax assets does not apply to individual transactions that satisfy both of the above conditions and
result in taxable temporary differences and deductible temporary differences of equal amounts arising
from the initial recognition of assets and liabilities. For taxable temporary differences and deductible
temporary differences arising from the initial recognition of assets and liabilities in such a transaction
the Company recognizes corresponding deferred income tax liabilities and deferred income tax assets at
the time of the transaction.The Company recognizes deferred income tax assets for the tax effects of deductible temporary
differences arising from investments in subsidiaries associates and joint ventures only if both of the
following conditions are met:
A. It is probable that the temporary difference will reverse in the foreseeable future;
B. It is probable that taxable income will be available in the future against which the deductible
temporary differences can be utilized;
At the balance sheet date if there is clear evidence that sufficient taxable income will likely be
available in future periods to utilize the deductible temporary differences the Company recognizes
deferred income tax assets that were not recognized in prior periods.At the balance sheet date the Company reviews the book value of deferred income tax assets. If it
is probable that sufficient taxable income will not be available in future periods to utilize the benefits of
the deferred income tax assets the book value of the deferred income tax assets is written down. When it
181 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
becomes probable that sufficient taxable income will be available the amount of the write-down is
reversed.
(2) Recognition of Deferred Income Tax Liabilities
The Company measures the income tax effect of all taxable temporary differences using the income
tax rate expected to apply in the period of reversal and recognizes that amount as a deferred income tax
liability except in the following cases:
* The income tax effect of taxable temporary differences arising from the following transactions
or events is not recognized as a deferred income tax liability:
A. The initial recognition of goodwill;
B. The initial recognition of assets or liabilities arising from transactions that do not qualify as
business combinations and that at the time of the transaction affect neither accounting profit nor taxable
income or deductible losses.* The Company generally recognizes the tax effect of taxable temporary differences arising from
investments in subsidiaries joint ventures and associates as deferred income tax liabilities except where
both of the following conditions are met:
A. The Company is able to control the timing of the reversal of the temporary difference;
B. It is highly probable that the temporary difference will not reverse in the foreseeable future.
(3) Recognition of Deferred Income Tax Liabilities or Assets Arising from Specific Transactions or
Events
* Deferred Income Tax Liabilities or Assets Related to Business Combinations
Taxable temporary differences or deductible temporary differences arising from business
combinations under non-common control are recognized as deferred income tax liabilities or deferred
income tax assets; at the same time the related deferred tax expense (or income) is generally recognized
as an adjustment to the goodwill recognized in the business combination.* Items recognized directly in equity
Current and deferred income taxes relating to transactions or events recognized directly in equity
are recognized in equity. Transactions or events for which the tax effect of temporary differences is
recognized in equity include: other comprehensive income arising from changes in the fair value of other
debt investments; adjustments to opening retained earnings resulting from changes in accounting
policies applied retrospectively or from the retrospective restatement of prior-period (material)
accounting errors; and hybrid financial instruments containing both liability and equity components
which are recognized in equity upon initial recognition.* Tax Loss Carryforwards and Tax Credits
A. Tax Loss Carryforwards and Tax Credits Arising from the Company’s Own Operations
The tax loss carryforward refers to a loss that in accordance with tax laws is allowed to be offset
against taxable income in future years. Unutilized tax loss carryforwards (tax loss carryforwards) and tax
credits that may be carried forward to future years in accordance with tax laws are treated as deductible
temporary differences. When it is probable that sufficient taxable income will be available in future
182 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
periods to utilize the net operating loss carryforwards or tax credits a deferred income tax asset is
recognized to the extent of such probable taxable income and the income tax expense in the current
period’s income statement is reduced accordingly.B. Unutilized tax losses of the acquiree arising from a business combination
In a business combination if the Company acquires deductible temporary differences of the
acquiree that do not meet the criteria for recognition as deferred income tax assets as of the acquisition
date such deferred income tax assets shall not be recognized. If within 12 months after the acquisition
date new or further information is obtained indicating that the relevant circumstances existing at the
acquisition date were already present and it is expected that the economic benefits arising from the
acquiree’s deductible temporary differences as of the acquisition date will be realized the related
deferred income tax assets shall be recognized and goodwill shall be reduced accordingly. If the
goodwill is insufficient to absorb the reduction the excess amount shall be recognized in profit or loss
for the current period. Except for the circumstances described above deferred income tax assets related
to a business combination shall be recognized and charged to profit or loss for the current period.* Temporary differences arising from consolidation eliminations
When preparing consolidated financial statements if the Company recognizes deferred income tax
assets or deferred income tax liabilities in the consolidated balance sheet due to temporary differences
arising from the elimination of unrealized gains or losses on internal sales—where the book value of
assets and liabilities in the consolidated balance sheet differ from their tax bases in the respective taxable
entities— while simultaneously adjusting the income tax expense in the consolidated income statement
except for deferred income taxes related to transactions or events recognized directly in equity and
business combinations.* Dividends on Financial Instruments Classified as Equity Instruments
For financial instruments classified as equity instruments issued by the Company is the issuer if the
related dividend payments are deductible for corporate income tax purposes in accordance with tax
regulations the Company recognizes the income tax impact associated with the dividends when it
recognizes the dividend payable. If the distributed profits arise from transactions or events that generated
profit or loss in prior periods the income tax effect of such dividends is recognized in current profit or
loss; if the distributed profits arise from transactions or events previously recognized in equity the
income tax effect of such dividends is recognized in equity.
(4) Basis for presenting deferred income tax assets and deferred income tax liabilities as the net
amount
When the following conditions are met simultaneously deferred income tax assets and deferred
income tax liabilities are presented as the net amount after offset:
* The Company has the legal right to settle current income tax assets and liabilities on a net basis;
* Deferred income tax assets and deferred income tax liabilities relate either to income taxes levied
by the same tax authority on the same taxable entity or to different taxable entities. However for each
significant period in which deferred income tax assets and deferred income tax liabilities are reversed in
183 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
the future the intention of the entity involved is to settle the current income tax assets and liabilities on a
net basis or to simultaneously obtain assets and settle liabilities.
38. Leasing
?Applicable □ Not Applicable
Judgement Basis and Accounting Treatment Method for Simplified Disposal of Short-term Leases
and Leases of Low-value Assets as Lessee
?Applicable □ Not Applicable
At the commencement of the lease term the Company classifies leases with a term of 12 months or
less and that do not include a purchase option as short-term leases; it classifies leases where the value of
the individual leased asset is low when new as low-value asset leases. If the Company subleases or
intends to sublease the leased asset the original lease is not classified as a low-value asset lease.For all short-term leases and low-value asset leases the Company capitalizes lease payments into
the cost of the related asset or recognizes them in profit or loss on a straight-line basis over the lease
term.Except for the short-term leases and low-value asset leases treated under the simplified approach
described above the Company recognizes a right-of-use asset and a lease liability at the commencement
date of the lease.* Right-of-Use Assets
The right-of-use asset is the right of the lessee to use a leased asset during the lease term.At the commencement of the lease term a right-of-use asset is initially measured at cost. This cost
includes:
* The initial measurement amount of the lease liability;
* Lease payments made on or before the commencement of the lease term net of any lease incentives
already received if applicable;
* Initial direct costs incurred by the lessee;
* Costs expected to be incurred by the lessee for dismantling and removing the leased asset restoring
the site where the leased asset is located or returning the leased asset to the condition specified in the
lease terms. The Company recognizes and measures these costs in accordance with the criteria and
methods for recognizing and measuring contingent liabilities; see Section V 31 for details. The
aforementioned costs if incurred for the production of inventory are included in the cost of inventory.Depreciation of right-of-use assets is calculated using the straight-line method. For leases where it
can be reasonably determined that ownership of the leased asset will be obtained at the end of the lease
term the depreciation rate is determined based on the category of the right-of-use asset and the
estimated residual value rate over the expected remaining useful life of the leased asset; for leases where
it cannot be reasonably determined that ownership of the leased asset will be obtained at the end of the
lease term depreciation is calculated over the shorter of the lease term and the remaining useful life of
the leased asset using the depreciation rate applicable to the category of the right-of-use asset.
184 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The depreciation methods depreciation periods residual values and annual depreciation rates for
each category of right-of-use assets are as follows:
Depreciation Depreciation Period Residual Value Rate Annual Depreciation
Category
Method (Years) (%) Rate (%)
Straight-Line
Housing and Structures Lease Term -- 20.00-34.55
Method
Straight-Line
Transportation Tools Lease Term -- 20
Method
* Lease Liabilities
Lease liabilities shall be initially measured at the present value of the lease payments not yet paid as
of the commencement date of the lease term. Lease payments consist of the following five components:
* Fixed payments and payments that are effectively fixed net of any lease incentives if applicable;
* Variable lease payments that depend on an index or rate;
* The exercise price of a purchase option provided the lessee reasonably expects to exercise that
option;
* Amounts payable upon exercising a termination option provided the lease term reflects that the
lessee expects to exercise the termination option;
* Amounts expected to be paid based on the residual value of guarantees provided by the lessee.The present value of lease payments is calculated using the implicit rate of the lease as the discount
rate; if the implicit rate cannot be determined the Company’s incremental borrowing rate is used as the
discount rate. The difference between the lease payments and their present value is considered as
unrecognized financing costs. Interest expense is recognized in each period of the lease term using the
discount rate applied to determine the present value of the lease payments and is included in profit or
loss for the period. Variable lease payments not included in the measurement of the lease liability are
recognized in profit or loss when they are incurred.After the commencement date of the lease term if there is a change in the effective fixed payments
a change in the expected amount payable for the guaranteed residual value a change in the indices or
rates used to determine the lease payments or a change in the valuation or actual exercise of a purchase
option renewal option or termination option the Company remeasures the lease liability based on the
present value of the revised lease payments and adjusts the book amount of the right-of-use asset
accordingly.Classification Criteria and Accounting Treatment Method for Leases as Lessor
?Applicable □ Not Applicable
On the lease commencement date the Company classifies leases that transfer substantially all the
risks and rewards incidental to ownership of the leased asset as finance leases; all other leases are
classified as operating leases.* Operating Leases
185 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The Company recognizes lease receipts as rental revenue on a straight-line basis over the lease term.Initial direct costs incurred are capitalized and amortized on the same basis as the recognition of rental
revenue with the amortization charged to current profit or loss. Variable lease payments related to
operating leases that are not included in lease receipts are recognized in current profit or loss when
incurred.* Finance Leases
At the commencement of the lease the Company recognizes a finance lease receivable equal to the
net investment in the lease (the sum of the unguaranteed residual value and the present value of lease
payments not yet received at the commencement of the lease term discounted using the implicit interest
rate of the lease) and derecognizes the finance lease asset. During each period of the lease term the
Company calculates and recognizes interest income using the implicit interest rate of the lease.Variable lease payments received by the Company that are not included in the measurement of the
net investment in the lease are recognized in profit or loss in the period in which they are incurred.
39. Other Significant Accounting Policies and Estimates
?Applicable □ Not Applicable
(I) Work Safety Expenses and Maintenance and Renovation Expenses
The Company sets aside work safety expenses in accordance with national regulations which are
included in the cost of related products or in current period profit or loss and simultaneously recorded
under the “Special Reserve” account.When work safety expenses and maintenance and renovation expenses are used within the
prescribed scope if they constitute expense-type expenditures they are directly charged to Special
Reserves; if they result in fixed assets the incurred expenditures are first aggregated in the
“Construction in Progress” account. Upon completion of the safety project and attainment of its intended
usable condition the assets are recognized as fixed assets; simultaneously Special Reserves are reduced
by the cost of the fixed assets and accumulated depreciation of the same amount is recognized. No
further depreciation is charged on these fixed assets in subsequent periods.(II) Repurchase of Company Shares
(1) Where the Company reduces its capital by repurchasing its own shares in accordance with
statutory procedures and upon approval the share capital shall be reduced by the total par value of the
shares canceled. The difference between the purchase price paid for the repurchased shares (including
transaction costs) and the par value of the shares shall be adjusted against equity. Any amount exceeding
the total par value shall be offset against capital reserves (share premium) retained earnings and
undistributed profits in that order; if the amount is less than the total par value the shortfall shall be
added to capital reserves (share premium).
(2) Shares repurchased by the Company shall be managed as treasury stock until they are canceled
or transferred and all expenses incurred in repurchasing the shares shall be recorded as the cost of
treasury stock.
186 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(3) Upon the transfer of treasury stock the portion of the transfer proceeds exceeding the cost of
treasury stock shall be credited to capital surplus (share premium); the portion below the cost of treasury
stock shall be offset against capital surplus (share premium) retained earnings and undistributed profits
in that order.(III) Debt Restructuring
(1) When the Company acts as a creditor
In cases of debt restructuring through the settlement of debt with assets the Company initially
recognizes assets other than the acquired financial assets at cost. The cost of inventory includes the fair
value of the waived claim and other costs directly attributable to the asset such as taxes transportation
costs loading and unloading costs and insurance premiums incurred in bringing the asset to its present
location and condition. The cost of an investment in an associate or joint venture includes the fair value
of the waived claim and other costs directly attributable to the asset such as taxes. The cost of
investment property includes the fair value of the waived claims and other costs directly attributable to
the asset such as taxes. The cost of fixed assets includes the fair value of the waived claims and other
costs directly attributable to the asset such as taxes transportation costs loading and unloading costs
installation costs and professional service fees incurred before the asset reaches its intended usable
condition. The cost of intangible assets includes the fair value of the debt waived and other costs directly
attributable to bringing the asset to its intended use such as taxes. The difference between the fair value
of the debt waived and the book amount is recognized in profit or loss for the current period.Where a debt restructuring involving the conversion of debt into equity instruments results in the
Company converting a receivable into an equity investment in an associate or joint venture the
Company measures the initial investment cost based on the fair value of the waived receivable and other
costs directly attributable to the asset such as taxes. The difference between the fair value and the book
value of the waived receivable is recognized in profit or loss for the current period.Where a debt restructuring is carried out by modifying other terms the Company recognizes and
measures the restructured debt in accordance with the accounting policies described in Section 5.11 of
this chapter.In the case of a debt restructuring involving the settlement of debt with multiple assets or a
combination of assets the Company first recognizes and measures the acquired financial assets and the
restructured receivables in accordance with the provisions of Section 5.11 of this chapter. It then
allocates the net amount of the fair value of the waived claim—after deducting the recognized amounts
of the acquired financial assets and restructured receivables—proportionally to the fair values of the
assets other than the acquired financial assets and uses this allocation as the basis for determining the
cost of each asset separately in accordance with the aforementioned methods. The difference between
the fair value and the book value of the waived claim is recognized in profit or loss for the current
period.
(2) When the Company acts as the debtor
187 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
In the case of debt restructuring through the settlement of debt with assets the Company
derecognizes the relevant assets and the settled debt when they meet the criteria for derecognition; the
difference between the book value of the settled debt and the book value of the transferred assets is
recognized in profit or loss for the current period.In the case of debt restructuring by converting debt into equity instruments the Company
derecognizes the debt when it meets the criteria for derecognition. Upon initial recognition of the equity
instruments the Company measures them at fair value; if the fair value of the equity instruments cannot
be reliably measured they are measured at the fair value of the debt being settled. The difference
between the book value of the debt being settled and the recognized amount of the equity instruments is
recognized in profit or loss for the current period.In the case of a debt restructuring involving the modification of other terms the Company
recognizes and measures the restructured debt in accordance with the accounting policies described in
Section 5.11 of this chapter.Where debt is restructured by settling the debt with multiple assets or through a combination of
methods the Company recognizes and measures the equity instruments and restructured debt in
accordance with the aforementioned methods. The difference between the book value of the debt settled
and the sum of the book value of the transferred assets and the recognized amounts of the equity
instruments and restructured debt is recognized in profit or loss for the current period.(IV) Significant Accounting Judgments and Estimates
The Company continuously evaluates its significant accounting estimates and key assumptions
based on historical experience and other factors including reasonable expectations regarding future
events. The significant accounting estimates and key assumptions that pose a risk of causing a material
adjustment to the book amounts of assets and liabilities in the next fiscal year are listed below:
(1) Classification of Financial Assets
The significant judgments involved in determining the classification of financial assets include an
analysis of the business model and the characteristics of contractual cash flows.The Company determines the business model used to manage financial assets at the portfolio level
taking into account factors such as the manner in which the performance of financial assets is evaluated
and reported to key management personnel the risks affecting the performance of financial assets and
how those risks are managed and the manner in which relevant business managers are compensated.In assessing whether the contractual cash flows of a financial asset are consistent with a basic
lending arrangement the Company makes the following key judgments: whether the principal is subject
to changes in its timing or amount during the term of the asset due to prepayment or other reasons; and
whether the interest solely reflects the time value of money credit risk other basic lending risks and the
consideration for costs and profit. For example whether the prepayment amount reflects only the
outstanding principal interest based on the outstanding principal and reasonable compensation for the
early termination of the contract.
(2) Measurement of Expected Credit Losses on Accounts Receivable
188 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The Company calculates expected credit losses on accounts receivable based on the exposure to
default risk and the expected credit loss rate with the expected credit loss rate determined on the basis of
the probability of default and the loss given default. In determining the expected credit loss rate the
Company uses data such as internal historical credit loss experience and adjusts historical data based on
current conditions and forward-looking information. When considering forward-looking information the
Company uses indicators such as the risk of an economic downturn changes in the external market
environment the technological environment and changes in customer circumstances. The Company
regularly monitors and reviews the assumptions related to the calculation of expected credit losses.
(3) Deferred Income Tax Assets
Deferred income tax assets should be recognized for all unused tax losses to the extent that it is
probable that sufficient taxable income will be available against which to utilize the losses. This requires
management to exercise significant judgment in estimating the timing and amount of future taxable
income taking into account tax planning strategies to determine the amount of deferred tax assets to be
recognized.
40. Changes in Significant Accounting Policies and EstimatesFor further details please refer to the section titled “Analysis and Explanation of the Reasons forand Impact of Changes in Accounting Policies Accounting Estimates or Corrections of MaterialAccounting Errors” under “Significant Matters.”
41. Financial Statements Involving Adjustments to the First-Time Implementation of New
Accounting Standards or Interpretations from 2025 Onward
□Applicable ?Not Applicable
42. Others
□Applicable ?Not Applicable
VI. Taxes
1. Major Tax Types and Tax Rates
Major Tax Types and Tax Rates
?Applicable □ Not Applicable
Tax Type Basis of Taxation /Revenue Type Tax Rate
Domestic Sales 19% 13% 9% 7% 0% tax-free
Provision of Real Estate Leasing Services 9%
Value-added Tax
Other Taxable Sales and Services 6%
Simplified Tax Calculation Method 5% or 3%
Consumption Tax
Business Tax
Urban Maintenance
and Construction Actually Paid Turnover Tax Amount 7% 5%
Tax
Corporate Income Taxable Income For details see *1
189 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Tax
The tax base is 70% of the original value of the
Property Tax 12% 1.2%
property (or rental income).Progressive tax rate (0.3%–0.5%)
Property Tax Appraised value of real estate and land
4.5931%
Education Surcharge Actually Paid Turnover Tax Amount 3%
Local Education
Actually Paid Turnover Tax Amount 2%
Surcharge
*1 The corporate income tax rates are set out in the table below.Elaboration on the disclosure of entities taxed at differing corporate income tax rates.?Applicable □ Not Applicable
Taxpayer Name Income Tax Rate (%)
The Company 15
Meihua Group International Trading (Hong Kong) Limited (hereinafter
16.5
referred to as "Hong Kong Meihua")*
Langfang Meihua Seasoning Co. Ltd. (hereinafter referred to as "Langfang
25
Seasoning")
Tongliao Meihua Seasoning Co. Ltd. (hereinafter referred to as "Tongliao
25
Seasoning")
Langfang Meihua Bio-Technology Development Co. Ltd. (hereinafter
15
referred to as "Langfang Development")
Langfang BAIAN Technology Co. Ltd. (hereinafter referred to as "Langfang
25
BAIAN")
Meihua (Shanghai) Biotechnology Co. Ltd. (hereinafter referred to as
20
"Shanghai R & D")
Lhasa Meihua Biological Investment Holding Co. Ltd. (hereinafter referred
25
to as "Lhasa Meihua")
Tongliao Meihua Biotechnology Co. Ltd. (hereinafter referred to as "Tongliao
15
Meihua")Tongliao Jianlong Chemical Co. Ltd. (hereinafter referred to as “Tongliao
25Jianlong”)
Xinjiang Meihua Amino Acid Co. Ltd. (hereinafter referred to as "Xinjiang
15
Meihua")
Xinjiang Meihua Agricultural Development Co. Ltd. (hereinafter referred to as
25
"Xinjiang Agriculture")Wujiaqu Jianlong Chemical Co. Ltd. (hereinafter referred to as “Wujiaqu
20Jianlong”)
Jilin Meihua Amino Acid Co. Ltd. (hereinafter referred to as "Jilin Meihua") 15
Zhuhai Hengqin Meihua Biotechnology Co. Ltd. (hereinafter referred to as
25
"Hengqin Meihua")
HONG KONG PLUM HOLDING LIMITED (hereinafter referred to as "Hong
16.5
Kong Holdings")*
CAYMAN PLUM HOLDING LIMITED (hereinafter referred to as "Cayman
0
Company")
PLUM BIOTECHNOLOGY GROUP PTE.LTD. (hereinafter referred to as 15
190 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
“Singapore Company”)
Plumino Precision Fermentation HoldingsPte. Ltd. (hereinafter referred to as
17
“SPV”)
Shanghai Primeno Amino Acids Co. Ltd. (hereinafter referred to as “SP”) 25
Plumino PrecisionFermentation(Thailand) Co . Ltd. (hereinafter referred to as
20
“TP”)
29.7 (including a federal corporate
Plumino Precision Fermentation USHoldingsInc. (hereinafter referred to as
income tax rate of 21% and a state
“PUS”)
corporate income tax rate of 8.7%)
25 (including a federal corporate
Plumino PrecisionFermentation USA Inc. (hereinafter referred to as “UP”) income tax rate of 21% and a state
corporate income tax rate of 4%)
29.7 (including a federal corporate
Plumino USA lnc. (hereinafter referred to as “PUSA”) income tax rate of 21% and a state
corporate income tax rate of 8.7%)
Plumino PrecisionFermentation JapanCo. Ltd. (hereinafter referred to as
20.42
“PJP”)
Plumino BiotechnologySingapore Pte.Ltd. (hereinafter referred to as “PSG”) 17
Plumino PrecisionFermentation EuropeGmbH (hereinafter referred to as
15
“PEU”)
Primano Biotechnology (Guangdong) Co. Ltd. (hereinafter referred to as
25
“PGD”)
* Subsidiaries of the Company Hong Kong Meihua and Hong Kong Holdings are wholly-owned subsidiaries
registered with the Companies Registry of Hong Kong. The profits tax is based on a two-tiered tax system with a tax rate
of 8.25% for the first HKD 2 million of profits and 16.5% thereafter.
2. Tax Benefits
?Applicable □ Not Applicable
(1) Corporate Income Tax
* The Company is registered in Lhasa Tibet Autonomous Region. Pursuant to the Announcement
on Continuing the Enterprise Income Tax Policies for the Large-Scale Development of Western China
Announcement No. 23 [2020] jointly issued by the Ministry of Finance the State Taxation
Administration and the National Development and Reform Commission from January 1 2021 to
December 31 2030 enterprises established in the western regions and engaged in encouraged industries
are subject to a reduced enterprise income tax rate of 15%.* Langfang R & D a subsidiary of the Company was certified as a high-tech enterprise by the
Hebei High-tech Enterprise Certification and Management Working Group on December 2 2025 with
certificate No. GR202513002211. The certificate is valid from December 2 2025 to December 2 2028.Corporate income tax is levied at a rate of 15% for the fiscal year 2025.* Jilin Meihua a subsidiary of the Company was certified as a high-tech enterprise by the Jilin
High-tech Enterprise Certification and Management Working Group on November 1 2024 with
191 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
certificate No. GR202422000344. The validity period is three years and in 2025 the corporate income
tax will be levied at a rate of 15%.* Tongliao Meihua and Xinjiang Meihua subsidiaries of the Company are entitled to a reduced
corporate income tax rate of 15% for enterprises engaged in encouraged industries in the western region
as stipulated in the Announcement No. 23 [2020] of the Ministry of Finance - Announcement of the
Ministry of Finance the State Taxation Administration and the National Development and Reform
Commission on the Continuation of the Corporate Income Tax Policy for the Development of the
Western Region from January 1 2021 to December 31 2030.* According to the Announcement No. 6 [2023] of the State Taxation Administration and the
Ministry of Finance - Announcement of the Ministry of Finance on the Income Tax Preferential Policies
for Small and Micro Enterprises and Individual Industrial and Commercial Businesses Xinjiang
Investment Shanghai R & D and Wujiaqu Jianlong subsidiaries of the Company are entitled to a tax
incentive. For the portion of annual taxable income of small-scale and micro-profit enterprises not
exceeding RMB 1 million yuan a reduced rate of 25% is applied to the taxable income and the
corporate income tax is levied at a rate of 20%.* A Singapore-incorporated subsidiary of the Company has successfully obtained the
“Development and Expansion Incentive” under the International Headquarters Award scheme granted
by the Singapore Economic Development Board (“EDB”). In accordance with the relevant provisions
the subsidiary is entitled to a concessionary tax rate of 15% for a period of five years provided that it
continues to meet the requirements stipulated by the EDB.
(2) Value-added tax
* Pursuant to the Notice of the Ministry of Finance and the State Administration of Taxation on
the Exemption of Value-added Tax on Organic Fertilizer Products (Cai Shui [2008] No. 56) and the
Reply of the State Administration of Taxation on Issues Concerning the Exemption of Value-added Tax
on Organic Fertilizer Products (Guo Shui Han [2008] No. 1020) the Company and its subsidiaries
Tongliao Meihua Xinjiang Meihua and Jilin Meihua were exempt from VAT on the production sale
wholesale and retail of organic fertilizer products during the current year.* Pursuant to Item 7 Subparagraph (19) Article 1 of Appendix 3 to the Notice of the Ministry of
Finance and the State Administration of Taxation on Implementing the Pilot Program of Replacing
Business Tax with Value-Added Tax in an All-round Manner (Cai Shui [2016] No. 36) the Company
and its subsidiary Tongliao Meihua are entitled to a VAT exemption on interest income derived from
centralized borrowing and on-lending arrangements.* According to the Notice by the General Office of the Ministry of Industry and Information
Technology the General Office of the Ministry of Finance and the General Office of the State Taxation
Administration on Matters Concerning the Development of the List of Advanced Manufacturing
Enterprises Eligible for the Additional Value-Added Tax Input Credit Deduction Policy for 2024 (Gong
Xin Ting Lian Cai Han [2024] No. 248 of the General Office of the Ministry of Industry and
192 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Information Technology) the Company’s subsidiary Xinjiang Meihua has been included in the list and
is entitled to the additional deduction of value-added tax input credits.* Pursuant to the Announcement of the Ministry of Finance the State Taxation Administration
and the Ministry of Veterans Affairs on Further Supporting the Entrepreneurship and Employment of
Self-employed Retired Soldiers (Cai Shui [2019] No. 21) and the Announcement of the Ministry of
Finance and the State Taxation Administration on Extending the Implementation Period of Certain
Preferential Tax Policies (No. 4 [2022]): From January 1 2019 to December 31 2023 enterprises that
employ self-employed retired soldiers enter into labor contracts with a term of more than one year and
pay social insurance contributions in accordance with the law may from the month in which such
contracts are executed and contributions are paid enjoy fixed-amount deductions from VAT urban
maintenance and construction tax education surcharge local education surcharge and corporate income
tax over a three-year period based on the actual number of employees recruited. From January 1 2023 to
December 31 2027 the above policy continues to apply. The fixed deduction standard is 6000 yuan per
person per year which may be increased by up to 50%. The people’s governments of provinces
autonomous regions and municipalities directly under the central government may determine the specific
standards within such range based on local conditions. The Company’s subsidiary Xinjiang Meihua is
entitled to the above tax credit policy.
3. Others
□Applicable ?Not Applicable
VII. Notes to Consolidated Financial Statements
1. Monetary Funds
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Cash on Hand 3267.17 --
Bank Deposits 3866955277.83 4112897142.87
Other Monetary Funds 420114528.49 447591156.66
Unexpired Interest Receivable 1098705.10 567894.43
Deposits with Financial Companies
Total 4288171778.59 4561056193.96
Including: Total Amount Deposited
1566229170.251075992001.16
Overseas
Other Explanations
(1) Details of restricted monetary funds are as follows:
Items December 31 2025 December 31 2024
Bank Acceptance Draft Guarantee
277489110.74428515211.93
Deposit
Funds in Transit 2478943.96 --
Guarantee Deposits and Other 669172.00 113485.46
193 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Items December 31 2025 December 31 2024
Restricted Funds
Total 280637226.70 428628697.39
(2) When preparing the statement of cash flow the Company has excluded restricted cash and
interest receivable not yet due from cash and cash equivalents at the end of the period.
2. Financial Assets Held for Trading
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Reason and
Items Ending Balance Beginning Balance Basis for
Designation
Financial Assets Measured at Fair Value with Changes in Fair
1140377416.70312033611.07/
Value Recorded in the Profit or Loss for the Current Period
Including:
Wealth Management Products 1140377416.70 312033611.07 /
Financial Assets Designated as Being Measured at Fair Value
with Changes in Fair Value Recorded in the Profit or Loss for
the Current Period
Including:
Total 1140377416.70 312033611.07 /
Other Explanations:
?Applicable □ Not Applicable
The significant change in financial assets at fair value through profit or loss was mainly attributable
to the Company’s purchase of wealth management products during the period to improve returns on idle
funds.
3. Derivative Financial Assets
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Foreign Exchange Derivative
2061300.00
Instruments
Total 2061300.00
Other Explanations:
None
4. Notes Receivable
(1). Classified Presentation of Notes Receivable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Bank Acceptance Notes 107542558.59 73697475.30
194 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Commercial Acceptance Notes
Total 107542558.59 73697475.30
(2). Notes receivable that have been pledged by the Company at the end of the period
□Applicable ?Not Applicable
(3). Notes receivable that have been endorsed or discounted by the Company at the end of the
period and are not due as of the balance sheet date
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount derecognized as at the end of Amount not derecognized as at the
Items
the period end of the period
Bank Acceptance Notes 99801405.25
Commercial Acceptance Notes
Total 99801405.25
(4). Classified Disclosure by the Bad Debt Provision Method
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
?Applicable □ Not Applicable
Items for Provision on a Portfolio Basic: Bank Acceptance Bill Portfolio
Unit: Yuan Currency: RMB
Ending Balance
Name
Book Balance Bad Debt Reserves Provision Ratio (%)
Bank Acceptance Bill
107542558.59
Portfolio
Total 107542558.59
Explanation of Provisions for Bad Debt Reserves on a Portfolio Basis:
?Applicable□ Not Applicable
As at December 31 2025 the Company measures loss allowances for bills receivable at lifetime
expected credit losses. The Company considers that the bank acceptance bills held are not exposed to
significant credit risk and that no material loss would arise from the default of the issuing banks.The criteria and descriptions for recognizing loss allowances on a portfolio basis are set out in
Section V.11 of this note.Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of Significant Changes in the Book Value of Notes Receivable with Changes in Loss
Reserves during the Current Period:
195 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
□Applicable ?Not Applicable
(5). Status of Bad Debt Reserves
□Applicable ?Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
None
(6). Notes Receivable Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including write-offs of significant notes receivable:
□Applicable ?Not Applicable
Explanation of Write-offs of Notes Receivable:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
5. Accounts Receivable
(1). Disclosure by Aging
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending Book Value Beginning Book Value
Within 1 year (including 1 year) 607648713.65 617940479.57
Within 1 year 607648713.65 617940479.57
1 to 2 years 116453.41 962314.02
2 to 3 years
Over 3 years
3 to 4 years
4 to 5 years
Over 5 years
Total 607765167.06 618902793.59
(2). Classified Disclosure by Bad Debt Provision Methods
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Book Balance Bad Debt Reserves Book Balance Bad Debt Reserves
Prov Prov
Category ision ision
Amount Ratio( Amount Rati Book Value Amount Ratio( Amount Rati Book Value%) o %) o
(%)(%)
196 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Provisions for
Bad Debt
Reserves on an
Individual-item
Basis
Including:
Provisions for
Bad Debt
607765167.06100.0030394081.005.00577371086.06618902793.59100.0030993255.385.01587909538.21
Reserves on a
Portfolio Basis:
Including:
Including: Aging
607765167.06100.0030394081.005.00577371086.06618902793.59100.0030993255.385.01587909538.21
Analysis Portfolio
Total 607765167.06 / 30394081.00 / 577371086.06 618902793.59 / 30993255.38 / 587909538.21
Provisions for Bad Debt Reserves on an Individual-item:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
?Applicable □ Not Applicable
Items for Provision on a Portfolio Basic: Aging Analysis Portfolio
Unit: Yuan Currency: RMB
Ending Balance
Name
Book Balance Bad Debt Reserves Provision Ratio (%)
Within 1 year 607648713.65 30382435.66 5.00
1-2 years 116453.41 11645.34 10.00
Total 607765167.06 30394081.00 5.00
Explanation of Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of Significant Changes in the Book Value of Accounts Receivable with Changes in Loss
Reserves during the Current Period:
□Applicable ?Not Applicable
(3). Status of Bad Debt Reserves
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount of Changes during the Current Period
Beginning
Category Recovered or Written Ending Balance
Balance Provision Other Changes
Reversed off
Aging Analysis
30993255.3810745328.4710146154.0930394081.00
Portfolio
Total 30993255.38 10745328.47 10146154.09 30394081.00
Including bad debts with significant amounts to be recovered or reversed during the period:
197 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
□Applicable ?Not Applicable
Other Explanations:
The other changes mainly represent an amount of 10264062.46 yuan arising from a business
combination not under common control.There was no material recovery or reversal of impairment losses during the period.
(4). Accounts Receivable Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant accounts receivable:
□Applicable ?Not Applicable
Explanation of Write-off of Accounts Receivable:
?Applicable □ Not Applicable
There were no receivables actually written off during the period.
(5). Overview of Accounts Receivable and Contract Assets Ranking Top Five in Ending Balances
Aggregated by Debtors
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Proportion in the
Ending Total Amount of
Ending Balances
Balances Ending Balances
Ending Balances of of Accounts Ending Balances of
Entity Name of of Accounts
Accounts Receivable Receivable and Bad Debt Reserves
Contract Receivable and
Contract Assets
Assets Contract Assets
(%)
First 146419928.48 146419928.48 24.09 7320996.42
Second 42799438.69 42799438.69 7.04 2139971.93
Third 41308531.02 41308531.02 6.8 2065426.55
Fourth 32290281.29 32290281.29 5.31 1614514.06
Fifth 29455639.44 29455639.44 4.85 1472781.97
Total 292273818.92 292273818.92 48.09 14613690.93
Other Explanations:
None
Other Explanations:
□Applicable ?Not Applicable
6. Contract Assets
(1). Status of Contract Assets
□Applicable ?Not Applicable
(2). Amount of and Reasons for Significant Changes in Book Value during the Reporting Period
□Applicable ?Not Applicable
198 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(3). Classified Disclosure by Bad Debt Provision Methods
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of significant changes in the book balance of contract assets with changes in loss reserves
during the current period:
□Applicable ?Not Applicable
(4). Status of Provisions for Bad Debt Reserves for Contract Assets during the Current Period
□Applicable ?Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
None
(5). Status of Contract Assets Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant contract assets
□Applicable ?Not Applicable
Explanation of Write-off of Contract Assets:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
7. Receivables Financing
(1). Classified Presentation of Receivables Financing
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Notes Receivable 17834479.91 26575904.82
Accounts Receivable 143883.09 147150.17
Total 17978363.00 26723054.99
(2). Receivables Financing that have been pledged by the Company at the end of the period
□Applicable ?Not Applicable
199 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(3). Receivables Financing that have been endorsed or discounted by the Company at the end of
the period and are not due as of the balance sheet date
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount derecognized as at the end of Amount not derecognized as at the
Items
the period end of the period
Bank Acceptance Notes 496861364.45
Total 496861364.45
(4). Classified Disclosure by Bad Debt Provision Methods
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Bad Debt
Book Balance Book Balance Bad Debt Reserves
Reserves
Prov
Category
ision Book Value Provisio Book Value
Ratio( Amoun Ratio(
Amount Rati Amount Amount n Ratio
%) t %)
o (%)
(%)
Provisions for Bad Debt
Reserves on an
Individual-item Basis
Including:
Provisions for Bad Debt
Reserves on a Portfolio 17985935.79 100.00 7572.79 0.04 17978363.00 26730799.74 100.00 7744.75 0.03 26723054.99
Basis:
Including:
Notes Receivable 17834479.91 99.16 17834479.91 26575904.82 99.42 26575904.82
Accounts Receivable 151455.88 0.84 7572.79 5.00 143883.09 154894.92 0.58 7744.75 5.00 147150.17
Total 17985935.79 / 7572.79 / 17978363.00 26730799.74 / 7744.75 / 26723054.99
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
?Applicable □ Not Applicable
Items for provisions on a portfolio basis: Accounts receivable
Unit: Yuan Currency: RMB
Ending Balance
Name
Book Balance Bad Debt Reserves Provision Rate (%)
Accounts Receivable 151455.88 7572.79 5.00
Total 151455.88 7572.79 5.00
Explanation of Provisions for Bad Debt Reserves on a Portfolio Basis
200 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of significant changes in the book balance of Receivables Financing with changes in loss
reserves during the current period:
□Applicable ?Not Applicable
(5). Status of Bad Debt Reserves
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount of Changes during the Current Period
Beginning Ending
Category Recovered or Other
Balance Provision Written off Balance
Reversed Changes
Provisions for Bad Debt
Reserves on an
Individual-item Basis
Provisions for Bad Debt
Reserves on a Portfolio 7744.75 171.96 7572.79
Basis
Including: Notes
Receivable
Accounts Receivable 7744.75 171.96 7572.79
Total 7744.75 171.96 7572.79
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
As at December 31 2025 the Company measures impairment allowances for receivables financing
based on lifetime expected credit losses. The Company considers that the bank acceptance bills held do
not carry significant credit risk and that no material loss would arise from bank default.The criteria and descriptions for recognizing impairment allowances on a portfolio basis are set out
in Section V.11 of this note.
(6). Status of Receivables Financing Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant Receivables Financing
□Applicable ?Not Applicable
Write-off Explanation:
□Applicable ?Not Applicable
(7). Fluctuations in Receivables Financing and Changes in Fair Value during the Current Period:
?Applicable □Not Applicable
201 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
The change amount for this
Beginning Balance Ending Balance
period
Items
Changes in Changes Changes in
Cost Fair Value Cost in Fair Cost Fair ValueValue
Notes
Receivable 26575904.82 -8741424.91 17834479.91
Accounts
Receivable 154894.92 -7744.75 -3439.04 171.96 151455.88 -7572.79
Total 26730799.74 -7744.75 -8744863.95 171.96 17985935.79 -7572.79
(8). Other Explanations:
□Applicable ?Not Applicable
8. Prepayments
(1). Presentation of Prepayments on Aging
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Aging
Amount Ratio (%) Amount Ratio (%)
Within 1 year 171509299.41 99.78 219536259.06 99.79
1 to 2 years 227605.00 0.13
2 to 3 years -- --
Over 3 years 147678.18 0.09 464602.69 0.21
Total 171884582.59 100 220000861.75 100.00
Explanation for significant prepayments with aging exceeding 1 year and not settled timely:
None
(2). Overview of Prepayments Ranking Top Five in Ending Balances Aggregated by Prepayment
Recipients
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Proportion in Total Amount of Ending
Entity Name Ending Balance
Balances of Prepayments (%)
First 26710268.90 15.54
Second 14192661.47 8.26
Third 7588353.14 4.41
Fourth 7414835.91 4.31
Fifth 6617687.37 3.85
Total 62523806.79 36.37
Other Explanations:
None
Other Explanations:
□Applicable ?Not Applicable
202 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
9. Other Receivables
Presentation of Items
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Interest Receivable 1575000.00 1575000.00
Dividend Receivable 1395866.49 1395866.49
Other Receivables 67506290.09 46322133.07
Total 70477156.58 49292999.56
Other Explanations:
□Applicable ?Not Applicable
Interest Receivable
(1).Classification of Interest Receivable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Fixed Deposits
Entrusted Loans
Bond Investments
Debt Investments 1575000.00 1575000.00
Total 1575000.00 1575000.00
(2).Significant Overdue Interest
□Applicable ?Not Applicable
(3).Classified Disclosure by Bad Debt Provision Methods
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable ?Not Applicable
(4).Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of Significant Changes in the Book Balance of Interest Receivable with Changes in Loss
Reserves during the Current Period:
□Applicable ?Not Applicable
203 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(5).Status of Bad Debt Reserves
□Applicable ?Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
None
(6).Status of Interests Receivable Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant interest receivable
□Applicable ?Not Applicable
Write-off Explanation:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
Dividends Receivable
(1).Dividends Receivable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item (or Investee) Ending Balance Beginning Balance
Tongliao Desheng Bio-techn Co. Ltd. 1395866.49 1395866.49
Total 1395866.49 1395866.49
(2).Significant Dividends Receivable with Aging Exceeding 1 Year
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item (or Investee) Whether Impairment Has
Reason for
Ending Balance Aging Occurred and Basis for
Non-receipt
Assessment
Tongliao Desheng Bio-techn 1-2
1395866.49 Not yet due No
Co. Ltd. years
Total 1395866.49 / / /
(3).Classified Disclosure by Bad Debt Provision Methods
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable ?Not Applicable
204 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(4).Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves:
None
Explanation of Significant Changes in the Book Balance of Dividends Receivable with Changes in Loss
Reserves during the Current Period:
□Applicable ?Not Applicable
(5).Status of Bad Debt Reserves
□Applicable ?Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
None
(6).Status of Dividends Receivable Actually Written off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant dividends receivable
□Applicable ?Not Applicable
Write-off Explanation:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
Other Receivables
(1).Disclosure by Aging
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Book Balance at the Beginning of the
Aging Book Balance at the End of the Period
Period
Within 1 year (including 1 year) 67105934.96 46467795.88
Within 1 year 67105934.96 46467795.88
1 to 2 years 3180293.72 1275731.61
2 to 3 years 667906.00 1174814.63
Over 3 years
3 to 4 years 778583.55 4789260.47
4 to 5 years 4656413.54 246853.74
Over 5 years 110825852.83 109567343.84
Total 187214984.60 163521800.17
(2).Classification of Accounts by Nature
?Applicable□ Not Applicable
Unit: Yuan Currency: RMB
Book Balance at the Beginning of the
Account Nature Book Balance at the End of the Period
Period
205 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
External Unit Account Current 29727742.16 27900225.75
Guarantee Deposit 8971087.73 1516947.79
Land and Real Estate Account
85672687.0085672687.00
Receivable
Export Tax Refunds Receivable 53078814.60 37629851.01
Others 9764653.11 10802088.62
Total 187214984.60 163521800.17
(3).Provisions for Bad Debt Reserves
?Applicable□ Not Applicable
Unit: Yuan Currency: RMB
Stage One Stage Two Stage Three
Expected Credit Expected Credit Losses Expected Credit Losses
Bad Debt Reserves Losses for the for the Entire Duration for the Entire Duration Total
Next 12 Months (Credit Impairment Not (Credit ImpairmentYet Occurred) Occurred)
Balance as of January 1
20254247487.67--112952179.43117199667.10
Balance as of January 1
2025 for the Current Period
-- Transferred to Stage Two
--Transferred to Stage
Three
-- Reversed to Stage Two
-- Reversed to Stage One
Provision for the Current
Period 366007.73 -- -- 366007.73
Reversal for the Current
Period -- -- -- --
Write-Off for the Current
Period -- -- -- --
Write-Off for the Current
--------
Period
Other Changes 2143019.68 -- -- 2143019.68
Balance as of December 31
20256756515.08--112952179.43119708694.51
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of Significant Changes in the Book Balance of Other Receivables with Changes in Loss
Reserves during the Current Period:
□Applicable ?Not Applicable
Basis for the Amount of Provisions for Bad Debt Reserves for the Current Period and for the
Assessment of Significant Increase in Credit Risk for Financial Instruments:
□Applicable ?Not Applicable
(4).Status of Bad Debt Reserves
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount of Changes during the Current Period
Beginning
Category Recovered Other Ending Balance
Balance Provision Written off
or Reversed Changes
206 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Provisions for Bad Debt
Reserves on an 112952179.43 112952179.43
Individual-item Basis
Provisions for Bad Debt
Reserves on a Portfolio 4247487.67 366007.73 2143019.68 6756515.08
Basis
Including: Aging
4247487.67366007.732143019.686756515.08
Analysis Portfolio
Total 117199667.10 366007.73 2143019.68 119708694.51
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
None
(5).Status of Other Receivables Actually Written off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant other receivables:
□Applicable ?Not Applicable
Explanation of Write-Off of Other Receivables:
□Applicable ?Not Applicable
(6).Overview of Other Receivables Ranking Top Five in Ending Balances Aggregated by Debtors
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Proportion
in the
Total
Amount Ending Balance
Ending
Entity Name of Ending Account Nature Aging of Bad Debt
Balance
Balances Reserves
of Other
Receivabl
es (%)
Baizhou Metal Glass and External Unit Over 5
85672687.0045.7685672687.00
Furniture Industrial Park Account Current years
Baicheng Taxation Bureau Export Tax Within 1
25858289.2513.811292914.46
State Taxation Administration Refunds year
207 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Tongliao Taxation Bureau State Export Tax Within 1
25246535.9913.491262326.80
Taxation Administration Refunds year
Kezuo Zhongqi Jucang Grain External Unit Over 5
22805887.0912.1822805887.09
Trading Co. Ltd. Account Current years
COFCO Trading Baicheng Co. Guarantee Within 1
3197000.001.71159850.00
Ltd. Deposits year
Total 162780399.33 86.95 / / 111193665.35
(7).Presented under Other Receivables due to Centralized Fund Management
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
10. Inventories
(1). Classification of Inventories
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Inventory Write Inventory Write
Down/Contract down/Contract
Items
Book Balance Performance Book Value Book Balance Fulfillment Book Value
Cost Write Cost Write
Down Down
Raw Materials 1781556032.76 99407632.81 1682148399.95 1869291071.68 3552300.96 1865738770.72
Work in Progress 352184164.47 5003649.19 347180515.28 364041057.73 -- 364041057.73
Inventory Goods 898686454.87 158239212.89 740447241.98 299770551.12 2895552.03 296874999.09
Turnover
Materials
Consumable
Biological Assets
Contract
Performance Cost
Goods Issued 251851543.84 -- 251851543.84 195625080.53 -- 195625080.53
Total 3284278195.94 262650494.89 3021627701.05 2728727761.06 6447852.99 2722279908.07
(2). Recognition of Data Resources as Inventory
□Applicable ?Not Applicable
(3). Capitalized Amount of Borrowing Costs Included in Inventory Balance at the End of the
Period and Its Calculation Criteria and Basis
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Beginning Increased Amount for the Current Decreased Amount for the
Items Ending Balance
Balance Period Current Period
208 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Reversed or
Provision Others *1 Others
Written off
Raw Materials 3552300.96 1038480.74 131825261.26 36124958.81 883451.34 99407632.81
Work in Progress 5146874.39 13050922.96 12559439.30 634708.86 5003649.19
Inventory Goods 2895552.03 8522097.26 291045444.85 144667064.43 -443183.18 158239212.89
Turnover
Materials
Consumable
Biological Assets
Contract
Performance Cost
Goods in Transit 20181873.41 20181873.41
Total 6447852.99 14707452.39 456103502.48 213533335.95 1074977.02 262650494.89
*1 The other changes during the period mainly represent an amount of 456103502.48 yuan arising
from a business combination not under common control.Reason for Reversal or Write-off of Inventory Write-down Provision During the Current Period
□Applicable ?Not Applicable
Provision for Inventory Write-down on a Portfolio Basis
□Applicable ?Not Applicable
Provision Criteria for Inventory Write-down on a Portfolio Basis
□Applicable ?Not Applicable
(4). Explanation of the Amortization Amount of Contract Performance Costs for the Current
Period
□Applicable ?Not Applicable
(5). Explanation of Amortization of Contract Performance Costs for the Current Period
□Applicable ?Not Applicable
Other Explanation:
□Applicable ?Not Applicable
11. Assets Held for Sale
□Applicable ?Not Applicable
12. Non-Current Assets Due within One Year
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Debt Investments Due within One
Year
Other Debt Investments Due within
One Year
Large-Denomination Certificate of
75186227.80182257027.81
Deposit
209 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Long-Term Receivables Due within
389397.68
One Year
Total 75575625.48 182257027.81
Debt Investments Due within One Year
□Applicable ?Not Applicable
Other Debt Investments Due within One Year
□Applicable ?Not Applicable
Other explanations for non-current assets due within one year:
None
13. Other Current Assets
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Cost of Contract Acquisition
Cost of Receivable Returns
Input Tax Credit for Value-Added Tax 108032314.02 82698855.12
Prepaid Taxes and Fees 22592023.99 4981517.30
Deferred Expenses 8660495.57 5353515.59
Large-denomination Certificate of
75446249.9971595510.66
Deposit
Total 214731083.57 164629398.67
Other Explanations:
None
14. Debt Investments
(1). Status of Debt Investments
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Tongliao Hailin
Biotechnology Co. 10500000.00 10500000.00 10500000.00 10500000.00
Ltd.Total 10500000.00 10500000.00 10500000.00 10500000.00
Changes in Debt Investment Impairment Reserves for the Current Period
□Applicable ?Not Applicable
(2). Significant Debt Investments at the End of the Period
□Applicable ?Not Applicable
(3). Provision for Impairment Reserves
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Impairment Reserves:
210 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
None
Explanation of Significant Changes in Book Balance of Debt Investments with Changes in Loss
Reserves during the Current Period:
□Applicable ?Not Applicable
Basis for the Amount of Provisions for Impairment Reserves and the Assessment of Significant Increase
in Credit Risk of Financial Instruments
□Applicable ?Not Applicable
(4). Status of Debt Investments Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including the write-off of significant debt investments
□Applicable ?Not Applicable
Explanation of Write-off of Debt Investments:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
15. Other Debt Investments
(1). Status of Other Debt Investments
□Applicable ?Not Applicable
Changes in Impairment Reserves for Other Debt Investments for the Current Period
□Applicable ?Not Applicable
(2). Significant Other Debt Investments at the End of the Period
□Applicable ?Not Applicable
(3). Provisions for Impairment Reserves
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Impairment Reserves:
None
Explanation of Significant Changes in the Book Balance of Other Debt Investments with Changes in
Loss Reserves during the Current Period:
□Applicable ?Not Applicable
Basis for the Amount of Provisions for Impairment Reserves and the Assessment of Significant Increase
in Credit Risk of Financial Instruments
□Applicable ?Not Applicable
(4). Status of Other Debt Investments Actually Written off during the Current Period
□Applicable ?Not Applicable
Including the write-off of significant other debt investments
□Applicable ?Not Applicable
Explanation of write-off of other debt investments:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
211 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
16. Long-term Receivables
(1). Status of Long-term Receivables
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Range
Ending Balance Beginning Balance of
Items Discou
Bad Debt Bad Debt
Book Balance Book Value Book Balance Book Value nt
Reserves Reserves Rates
Financing Lease Receivables 622641.83 -- 622641.83 601043.91 601043.91
Including: Unrealized
10602.3210602.3223036.8523036.85
Financing Income
Goods Sold on an Installment
Basis
Services Provided on an
Installment Basis
Less: Long-term Receivables
389397.68389397.68
Due within One year
Total 233244.15 -- 233244.15 601043.91 -- 601043.91 /
(2). Classified Disclosure by Bad Debt Provision Methods
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable ?Not Applicable
(3). Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of Significant Changes in Book Balance of Long-term Receivables with Changes in Loss
Reserves during the Current Period:
□Applicable ?Not Applicable
Basis for Amount of Provisions for Bad Debt Reserves and the Assessment of Significant Increase in
Credit Risk of Financial Instruments
□Applicable ?Not Applicable
(4). Status of Bad Debt Reserves
□Applicable ?Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
212 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
None
(5). Status of Long-term Receivables Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including Write-off of Significant Long-term Receivables
□Applicable ?Not Applicable
Explanation of Write-off of Long-term Receivables:
□Applicable ?Not Applicable
Other Explanations
□Applicable ?Not Applicable
17. Long-term Equity Investments
(1). Status of Long-term Equity Investments
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase/Decrease during the Current Period
In
Adjust Endin
cr Declarat
De ments Provis g
ea Othe ion of
cre Investment to ions Balan
Beginning se r Cash Ending
ase Profit or Loss Other for ces of
Invested Unit Balance (book In Equi Dividen Othe Balance (book
Inv Recognized Comp Impair Impair
value) ve ty d or rs value)
est under Equity rehens ment ment
st Cha Profits
me Method ive Reser Reser
m nges Distribu
nt Incom ves ves
en tion
e
t
I. Joint Ventures
Subtotal
II. Associates
Tongliao
Desheng
6874939.88-2117014.674757925.21
Bio-Tech Co.Ltd.Subtotal 6874939.88 -2117014.67 4757925.21
Total 6874939.88 -2117014.67 4757925.21
(2). Impairment Testing of Long-term Equity Investments
□Applicable ?Not Applicable
Other Explanations:
None
213 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
18. Other Equity Instrument Investments
(1). Status of Other Equity Instrument Investments
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase/Decrease During the
Current Period
Gain
D Gain
s
e s
Rec
c Cum
orde
r ulati
d in Reasons for
In e vely
Othe Designation
cr a Dividend Rec Losses
r Losses as Measured
ea s O Income orde Cumulatively
Com Recorded in at Fair Value
Beginning se e t Ending Recognized d in Recorded in
Items preh Other with Changes
Balance In I h Balance for the Othe Other
ensi Comprehensiv Recorded in
ve n e Current r Comprehensiv
ve e Income for Other
st v r Period Com e Income
Inco the Current Comprehensiv
m e s preh
me Period e Income
en s ensi
for
t t ve
the
m Inco
Curr
e me
ent
n
Peri
t
od
Planned for
Bank of Tibet
157000000.00 157000000.00 3308800.00 Long-term H
Co. Ltd.olding
Planned for
AIM Vaccine
284294280.00 139327470.00 144966810.00 153024892.50 Long-term
Co. Ltd.Holding
Total 441294280.00 139327470.00 301966810.00 3308800.00 153024892.50 /
(2). Explanation of Cases Involving Derecognition During the Current Period
□Applicable ? Not Applicable
Other Explanations:
□Applicable ? Not Applicable
19. Other Non-Current Financial Assets
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending Balance Beginning Balance
Financial Assets Designated as Being Measured at Fair Value with 282005000.00
214 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Changes in Fair Value Recorded in the Profit or Loss for the
Current Period
Total 282005000.00
Other Explanations:
□Applicable ? Not Applicable
20. Investment Properties
Measurement Model for Investment Properties
Not Applicable
21. Fixed Assets
Presentation of Items
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Fixed Assets 12768478381.36 11338208623.56
Clearance of Fixed Assets
Total 12768478381.36 11338208623.56
Other Explanations:
□Applicable ?Not Applicable
Fixed Assets
(1).Status of Fixed Assets
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Housing and Machinery and Transportation Office and Other
Items Total
Structures Equipment Tools Equipmet
I. Original Book Value
1. Beginning Balance 7615177316.84 17724735641.43 63233482.62 253099206.30 25656245647.19
2. Increased Amount for the
1484744393.754254931680.207743751.3275576992.265822996817.53
Current Period
(1) Acquisition -- 30175664.34 3776673.87 7237963.27 41190301.48
(2) Transfer from Construction
718348504.181784043868.5059413.8837912553.062540364339.62
in Progress
(3) Increase from Enterprise
765326739.492439945116.133907663.5730426475.933239605995.12
Merger
Foreign Currency Translation
1069150.08767031.23----1836181.31
Differences
3. Decreased Amount for the
175206731.22696518828.659584095.2819389587.51900699242.66
Current Period
(1) Disposal or Scrapping 132758915.12 662661534.55 9536228.25 18987419.65 823944097.57
Transfer to Construction in
42447816.1033857294.10--108724.5876413834.78
Progress
Foreign Currency Translation -- -- 47867.03 293443.28 341310.31
215 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Differences
4. Ending Balance 8924714979.37 21283148492.98 61393138.66 309286611.05 30578543222.06
II. Accumulated Depreciation
1. Beginning Balance 3299561917.61 10812132793.46 49281459.83 154975714.26 14315951885.16
2. Increased Amount for the
675961068.702687993991.087307581.2452215984.153423478625.17
Current Period
(1) Provision 367589821.99 954287715.63 3403883.53 27107622.70 1352389043.85
Increase from Enterprise
308371246.711733706275.453903697.7125108361.452071089581.32
Merger
3. Decreased Amount for the
118338543.57639848333.797485470.2418163225.47783835573.07
Current Period
(1) Disposal or Scrapping 117658604.96 636575624.00 7437675.12 17936112.58 779608016.66
Foreign Currency Translation
679938.613272709.7947795.12227112.894227556.41
Differences
4. Ending Balance 3857184442.74 12860278450.75 49103570.83 189028472.94 16955594937.26
III. Impairment Reserves
1. Beginning Balance 1723356.44 361782.03 2085138.47
2. Increased Amount for the
299403941.28560798067.473965.86957540.15861163514.76
Current Period
(1) Provision 10769658.16 10196042.26 -- 361782.03 21327482.45
Increase from Enterprise
286991893.75547640260.143965.86595758.12835231877.87
Merger
Foreign Currency Translation
1642389.372961765.07----4604154.44
Differences
3. Decreased Amount for the
8603900.00164391.6371.9110386.258778749.79
Current Period
(1) Disposal or Scrapping 8603900.00 164391.63 8768291.63
Foreign Currency Translation
71.9110386.2510458.16
Differences
4. Ending Balance 292523397.72 560633675.84 3893.95 1308935.93 854469903.44
IV. Book Value
1. Book Value at the End of the
4775007138.917862236366.3912285673.88118949202.1812768478381.36
Period
2. Book Value at the Beginning
4313892042.796912602847.9713952022.7997761710.0111338208623.56
of the Period
(2).Status of Temporarily Idle Fixed Assets
□Applicable ?Not Applicable
(3).Fixed Assets Leased through Operating Leases
□Applicable ?Not Applicable
(4).Status of Fixed Assets without Property Ownership Certificates
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
216 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Reasons for Lack of Property
Items Book Value
Ownership Certificates
Housing and Structures 487988419.30 In Process
Total 487988419.30
(5).Impairment Testing of Fixed Assets
?Applicable □ Not Applicable
Recoverable amount is determined as the net amount after deducting disposal costs from fair
value
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Determination of Key
Impairment Basis for Key
Items Book Value Recoverable amount Fair Value and Param
Loss Parameters
Disposal Costs eters
Housing (1) Fair
and 5067530536.63 4775007138.91 292523397.72 Fair value is value is
Structures determined based determined
Machinery on market based on
and 8422870042.23 7862236366.39 560633675.84 quotations market historical
Equipment transaction prices transaction
Transportati of identical or (1) prices of
12289567.8312285673.883893.95
on Tools similar assets after Fair assets market
considering value; quotations
adjustment (2) and other
factors or net Dispos relevant data;
realisable value al (2) Disposal
Office and from piecemeal costs costs include
Other 120258138.11 118949202.18 1308935.93 disposal. Disposal handling fees
Equipmet costs refer to costs taxes and
directly other costs
attributable to the related to
disposal of assets. asset
disposal.Total 13622948284.80 12768478381.36 854469903.44 / / /
Recoverable amount is determined based on the present value of expected future cash flows
□Applicable ?Not Applicable
Reasons for differences between the foregoing information and the information used in
impairment tests in previous years or external information
□Applicable ?Not Applicable
Reasons for differences between the information used in impairment tests in previous years and
the actual situation in the current year
□Applicable ?Not Applicable
217 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Other Explanations:
□Applicable ?Not Applicable
Clearance of Fixed Assets
□Applicable ?Not Applicable
22. Construction in Progress
Presentation of Items
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Construction in Progress 331385832.85 714122720.14
Engineering Materials 12174104.36 14401421.40
Total 343559937.21 728524141.54
Other Explanations:
□Applicable ?Not Applicable
Construction in Progress
(1).Status of Construction in Progress
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Impair Impair
Items ment mentBook Balance Book Value Book Balance Book Value
Reser Reser
ves ves
Tongliao Meihua West Area
Technological Renovation 16888073.65 16888073.65 28450008.41 28450008.41
Project
Tongliao Meihua East Area
Technological Renovation 20820394.95 20820394.95 21533131.55 21533131.55
Project
Technological Upgrade
7632614.407632614.40
Project of Tongliao Jianlong
500000-ton MSG Project in
3570177.513570177.51223215378.27223215378.27
the West Zone of Tongliao
Expansion Project of the
Heating Station in the West 2434539.46 2434539.46 88996489.23 88996489.23
Zone of Tongliao
Tongliao Meihua Threonine
100863088.44100863088.44
300000 t/a Project
Tongliao Sulfuric Acid
Expansion and Upgrading 115580409.75 115580409.75
Project
Xinjiang Meihua 90000 t/a
16477092.2016477092.20
Valine Project
218 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Technological Upgrade
Project of Xinjiang Meihua 17779556.30 17779556.30 2207646.03 2207646.03
Process Optimization Project
for Xanthan Gum in Xinjiang 263771.92 263771.92 7588537.29 7588537.29
18000-ton Technological
Upgrade Project for 474083.23 474083.23 145720675.85 145720675.85
L-Isoleucine in Xinjiang
Reconstruction Project in
Xinjiang 24967002.47 24967002.47
Phase V 600000-ton Annual
L-Lysine Project in Jilin 12730115.50 12730115.50 155468504.85 155468504.85
Technological Upgrade
Project of Jilin Meihua 4391627.29 4391627.29 14817339.85 14817339.85
Reconstruction Project of the
Company 10035634.61 10035634.61 1158006.34 1158006.34
Other Projects 1444653.64 1444653.64
Total 331385832.85 331385832.85 714122720.14 714122720.14
(2).Changes in Significant Construction in Progress for the Current Period
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
O
t
h
e
r
D
e
c
r
e
a
s
e
d
A
m Intere
o Percenta st
Amount u ge of Capita
Increased Transferred to n Cumulati Engin Accumulated
Including:
Amount of lizatio
Project Name Budget Amount BeginningBalance Amount for the Fixed Assets for
t Ending Balance ve eering Amount ofs Investme Progre Capitalized Capitalized
n Rate Sources
Current Period the Current Interest for the for the of Fund
Period f nt in ss Interest Curreo Budget Current Period nt
r (%) Period
t (%)
h
e
C
u
r
r
e
n
t
P
e
r
i
o
d
Bank
500000-ton
MSG Project in loans
the West Zone of 1061347600.00 223215378.27 55674610.92 275319811.68 3570177.51 86.08 86.08 8629820.21 1947324.08 2.64
Tongliao and
self-fund
Project of the
Heating Station Self-fund
in the West Zone 427715200.00 88996489.23 120272618.15 206834567.92 2434539.46 73.70 73.70
of Tongliao ed
219 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Bank
Phase V
600000-ton loans
Annual L-Lysine 1832070000.00 155468504.85 1455777525.27 1598515914.62 12730115.50 87.95 87.95 6139016.42 5706154.97 2.75
Project in Jilin and
self-fund
Process
Optimization Self-fund
Project for 167380700.00 7588537.29 24640539.59 31965304.96 263771.92 109.30 99.99
Xanthan Gum in ed
Xinjiang
18000-ton
Technological Self-fund
Upgrade Project 156558000.00 145720675.85 14990573.31 160237165.93 474083.23 102.65 99.99
for L-Isoleucine ed
in Xinjiang
Tongliao Meihua Bank
Threonine loans
1981000000.00101576998.18713909.74100863088.445.135.1393868.0293868.022.4
300000 t/a and
Project self-fund
Tongliao
Sulfuric Acid
Self-fund
Expansion and 248075700.00 115702161.97 121752.22 115580409.75 46.64 46.64
ed
Upgrading
Project
Xinjiang Meihua
Self-fund
90000 t/a Valine 539300000.00 16477092.20 16477092.20 3.06 3.06
ed
Project
Total 6413447200.00 620989585.49 1905112119.59 2273708427.07 252393278.01 / / 14862704.65 7747347.07 / /
(3).Provisions for Impairment Reserves for Construction in Progress for the Current Period
□Applicable ?Not Applicable
(4).Impairment Testing of Construction in Progress
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
Engineering Materials
(1).Status of Engineering Materials
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Engineering
12174104.3612174104.3614401421.4014401421.40
Materials
Total 12174104.36 12174104.36 14401421.40 14401421.40
Other Explanations:
None
220 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
23. Productive Biological Assets
(1). Productive biological assets measured at cost
□Applicable ?Not Applicable
(2). Impairment testing of productive biological assets measured at cost
□Applicable ?Not Applicable
(3). Productive biological assets measured at fair value
□Applicable ?Not Applicable
Other Explanations
□Applicable ?Not Applicable
24. Oil and Gas Assets
(1). Status of Oil and Gas Assets
□Applicable ?Not Applicable
(2). Impairment testing of oil and gas assets
□Applicable ?Not Applicable
Other Explanations:
None
25. Right-of-Use Assets
(1). Status of Right-of-Use Assets
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Housing and Transportation
Items Total
Structures Tools
I. Original Book Value
1. Beginning Balance 10858686.84 2521254.38 13379941.22
2. Increased Amount for the Current --
6357380.356357380.35
Period
Lease -- -- --
Increase from Enterprise Merger 6357380.35 -- 6357380.35
3. Decreased Amount for the Current 1543893.80
6417029.327960923.12
Period
Expiration of Lease 6417029.32 1543893.80 7960923.12
4. Ending Balance 10799037.87 977360.58 11776398.45
II. Accumulated Depreciation
1. Beginning Balance 4341229.52 892819.35 5234048.87
2. Increased Amount for the Current 504250.86
8457388.218961639.07
Period
(1) Provision 3444231.37 504250.86 3948482.23
Increase from Enterprise Merger 5013156.84 -- 5013156.84
3. Decreased Amount for the Current 1054994.04
5371616.586426610.62
Period
221 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(1) Disposal
Expiration of Lease 5371616.58 1054994.04 6426610.62
4. Ending Balance 7427001.15 342076.17 7769077.32
III. Impairment Reserves
1. Beginning Balance
2. Increased Amount for the Current
Period
(1) Provision
3. Decreased Amount for the Current
Period
(1) Disposal
4. Ending Balance
IV. Book Value
1. Book Value at the End of the Period 3372036.72 635284.41 4007321.13
2. Book Value at the Beginning of the Period 6517457.32 1628435.03 8145892.35
Note: The depreciation of right-of-use assets for the year 2025 amounted to 3948482.23 yuan and
the depreciation expense charged to administrative expenses was 3948482.23 yuan.
(2). Impairment Testing of Right-of-Use Assets
□Applicable ?Not Applicable
Other Explanations:
As at the end of the period there were no indicators of impairment of the Company’s right-of-use assets.
26. Intangible Assets
(1). Status of Intangible Assets
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Pa
te Non-p Rights to use
Items Land Use Right nt atentRi Techn Software
License for
Patent Usage drug Total
gh ology approvals
t
I. Original Book Value
1. Beginning Balance 1596007128.28 50227999.55 234427829.31 1880662957.14
2. Increased Amount for
248529611.9875952189.524200000.007000000.00335681801.50
the Current Period
(1) Acquisition 7622682.99 11482524.12 19105207.11
(2) Internal Research
and Development
(3) Increase from
239163790.5364469665.44200000.007000000.00314833455.93
Enterprise Merger
Foreign Currency
1743138.461743138.46
Translation Differences
3. Decreased Amount
3177541.553177541.55
for the Current Period
(1) Disposal 2850035.12 2850035.12
222 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Foreign Currency
327506.43327506.43
Translation Differences
4. Ending Balance 1844536740.26 123002647.52 238627829.31 7000000.00 2213167217.09
II. Accumulated Amortization
1. Beginning Balance 367258212.89 25133096.27 131459381.16 523850690.32
2. Increased Amount for
45636398.0153551403.339626010.416299815.92115113627.67
the Current Period
(1) Provision 32300128.75 7383698.72 9626010.41 132330.00 49442167.88
Increase from
13336269.2646167704.616167485.9265671459.79
Enterprise Merger
3. Decreased Amount
2903396.002903396.00
for the Current Period
(1) Disposal 2760272.04 2760272.04
Foreign Currency
143123.96143123.96
Translation Differences
4. Ending Balance 412894610.90 75781103.60 141085391.57 6299815.92 636060921.99
III. Impairment Reserves
1. Beginning Balance
2. Increased Amount for
17785531.822040005.2719825537.09
the Current Period
(1) Provision
Increase from
17558914.762027624.2119586538.97
Enterprise Merger
Foreign Currency
226617.0612381.06238998.12
Translation Differences
3. Decreased Amount
for the Current Period
(1) Disposal
4. Ending Balance 17785531.82 2040005.27 19825537.09
IV. Book Value
1. Book Value at the
1413856597.5445181538.6597542437.74700184.081557280758.01
End of the Period
2. Book Value at the
1228748915.3925094903.28102968448.151356812266.82
Beginning of the Period
The ratio of intangible assets generated from the internal research and development by the Company to
the balance of intangible assets at the end of the current period is zero.
(2). Data Resources Recognized as Intangible Assets
□Applicable ?Not Applicable
(3). Status of Land Use Rights without Property Ownership Certificates
?Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Book Value Reason for Pending Title Certificate
223 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Land Use Right 100787.81 In process
Total 100787.81
(4). Impairment Testing of Intangible Assets
?Applicable □Not Applicable
Recoverable amount is determined as the net amount after deducting disposal costs from fair
value
?Applicable □Not Applicable
Unit: Yuan Currency: RMB
Determination of Key
Recoverable Impairment Basis for Key
Items Book Value Fair Value and Parame
amount Loss Parameters
Disposal Costs ters
Land Use Fair value is
1431642129.361413856597.5417785531.82
Right determined based
Software 47221543.92 45181538.65 2040005.27 on market
(1) Fair value is
License for quotations or
determined based
Patent 97542437.74 97542437.74 transaction prices
on historical
Usage of properties in the
(1) transaction prices
same or similar
Fair of assets market
locations after
value; quotations and
considering
(2) other relevant data;
relevant adjustment
Disposa (2) Disposal costs
Rights to factors or based on
l costs include handling
use drug 700184.08 700184.08 the expected use of
fees taxes and
approvals the assets. Disposal
other costs related
costs refer to costs
to asset disposal.directly attributable
to the disposal of
assets.Total 1577106295.10 1557280758.01 19825537.09 / / /
Recoverable amount is determined based on the present value of expected future cash flows
□Applicable ?Not Applicable
Reasons for differences between the foregoing information and the information used in
impairment tests in previous years or external information
□Applicable ?Not Applicable
Reasons for differences between the information used in impairment tests in previous years and
the actual situation in the current year
□Applicable ?Not Applicable
Other Explanations
□Applicable ?Not Applicable
224 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
27. Goodwill
(1). Original Book Value of Goodwill
?Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increases Decreases
during the during the
Current Current
Name of the Invested Unit or
Beginning Balance Period Period Ending Balance
Matters Generating Goodwill
Arising from
Enterprise Disposal
Merger
Tongliao Jianlong 11788911.79 11788911.79
Total 11788911.79 11788911.79
(2). Goodwill Impairment Reserves
□Applicable ?Not Applicable
(3). Relevant Information of Asset Portfolio or Asset Portfolios Where Goodwill Belongs to
□Applicable ?Not Applicable
Changes in Asset Portfolio or Asset Portfolios
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
(4). Specific Methods for Determining Recoverable Amount
Recoverable amount is determined as the net amount after deducting disposal costs from fair value
□Applicable ?Not Applicable
Recoverable amount is determined based on the present value of expected future cash flows
□Applicable ?Not Applicable
Reasons for differences between the foregoing information and the information used in impairment tests
in previous years or external information
□Applicable ?Not Applicable
Reasons for differences between the information used in impairment tests in previous years and the
actual situation in the current year
□Applicable ?Not Applicable
(5). Performance Commitments and Corresponding Goodwill Impairment
When the goodwill was formed there are performance commitments and the reporting period or the
preceding reporting period was within the performance commitment period.□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
28. Long-term Deferred Expenses
?Applicable □ Not Applicable
225 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Unit: Yuan Currency: RMB
Increased Amount Amortized Amount
Other Decreased
Items Beginning Balance for the Current for the Current Ending Balance
Amounts
Period Period
Field usage rights 27323514.71 152201.83 1901279.43 25574437.11
Housing Subsidies 53853880.45 15972000.00 9482539.26 285185.18 60058156.01
Production
38163082.1932731250.8428663997.8342230335.20
Materials
Staff Rewards 149999.98 119999.89 5000.00 25000.09
Leasehold
3048072.18773656.08527179.453294548.81
Improvements
One-time
2927431.01328859.342598571.67
expansion fee
Total 122538549.51 52556539.76 41023855.20 290185.18 133781048.89
Other Explanations:
None
29. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1). Unoffset Deferred Income Tax Assets
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Deductible Deductible
Items Deferred Income Deferred Income
Temporary Temporary
Tax Assets Tax Assets
Differences Differences
Asset Impairment
130774330.4520132473.89125361707.1418804914.95
Reserves - Bad debts
Asset Impairment
21920451.883436100.136447852.991099934.94
Reserves - Inventory
Unrealized Profits from
23434992.363515642.53
Internal Transactions
Government Grants 311752382.95 46762857.44 322722660.36 48408399.05
Deductible Losses
Fair Value Changes 204033190.00 51008297.49 83836954.75 14488666.67
Compensation 154359967.03 23153995.05 83202619.91 12480392.99
Difference in
15038851.772255827.7717744949.452661742.42
Depreciation Periods
Lease Liabilities 2367429.23 355114.38
Total 837879174.08 146749551.77 665119166.19 101814807.93
(2). Unoffset Deferred Income Tax Liabilities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Items
Taxable Temporary Deferred Income Taxable Temporary Deferred Income
226 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Differences Tax Liabilities Differences Tax Liabilities
Increment in valuation
of assets from enterprise
merger not under the
same control
Changes in Fair Value of
Other Debt Investments
Changes in Fair Value of
Other Equity
Investments
Unrealized Profits from
1072763.74147295.19
Internal Transactions
Fair Value Changes 4777685.38 882833.74 2096301.37 314445.21
Difference in
117440920.0119073894.96126857856.8520662571.49
Depreciation Periods
Right-of-Use Assets 1839651.34 275947.70 4054744.98 608211.75
Total 125131020.47 20379971.59 133008903.20 21585228.45
(3). Deferred Income Tax Assets or Liabilities Presented as Net Amounts After Offset
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Offsetting
Offsetting Amount Amount
Net Balance of Net Balance of
Between Deferred Between
Items Deferred Tax Assets or Deferred Tax Assets or
Tax Assets and Deferred Tax
Liabilities After Liabilities After
Deferred Tax Assets and
Offsetting Offsetting
Liabilities Deferred Tax
Liabilities
Deferred Income Tax
20379971.59126369580.18--101814807.93
Assets
Deferred Income Tax
20379971.59----21585228.45
Liabilities
(4). Details of Unrecognized Deferred Income TaxAssets
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Deductible Temporary Differences
Bad Debt Reserves 19336017.85 22838960.09
Inventory Write Down 239122027.46 --
Fixed Assets Impairment Reserves 854469903.44 2085138.47
Intangible Assets Impairment
19825537.09--
Reserves
227 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Unrealized Profits from Internal
71275838.72--
Transactions
Deductible Losses 118557613.15 31196481.29
Total 1322586937.71 56120579.85
(5). Deductible losses of unrecognized deferred income tax assets will expire in the following years
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Year Ending Balance Beginning Balance Remarks
2025--3116726.22
20268553866.718553866.71
20273629579.193629579.19
20284501349.794697563.09
202911101638.1711198746.08
203090771179.29--
Total 118557613.15 31196481.29 /
Other Explanations:
□Applicable ?Not Applicable
30. Other Non-current Assets
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Impair Impair
Items ment ment
Book Balance Book Value Book Balance Book Value
Reser Reser
ves ves
Cost of Contract Acquisition
Cost of Contract Performance
Cost of Receivable Returns
Contract Assets
Prepaid Equipment and
76520223.5476520223.54166908283.83166908283.83
Engineering Payments
Large-denomination Certificates
682115159.50682115159.50797923228.96797923228.96
of Deposit
Less: Non-current assets due
75186227.8075186227.80182257027.81182257027.81
within one year
Total 683449155.24 683449155.24 782574484.98 782574484.98
Other Explanations:
None
31. Assets with Restricted Ownership Right or Usage Right
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
228 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
End of the Period Beginning of the Period
Restri Restri
Items Restricted Restricted
Book Balance Book Value ction Book Balance Book Value ction
Situation Situation
Type Type
Guarantee
Guarantee
Froze Deposits Froze
Monetary Funds 278158282.74 278158282.74 428628697.39 428628697.39 Deposits
n and n
and Others
Others
Other Funds in
Monetary Funds 2478943.96 2478943.96
s Transit
Endorsed
or
discounte
Other d bills not
Notes Receivable 99801405.25 99801405.25
s yet due
and not
derecogni
sed
Other
Froze
Non-current 80000.00 80000.00 Others
n
Assets
Mortg Loan
Fixed Assets 835206080.41 393081094.85
age Collateral
Intangible Mortg Loan
36898603.2327154158.71
Assets age Collateral
Including: Data
Resources
Total 380518631.95 380518631.95 / / 1300733381.03 848863950.95 / /
Other Explanations:
None
32. Short-Term Borrowings
(1). Classification of Short-Term Borrowings
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Pledged Borrowings
Mortgaged Borrowings
Guaranteed Borrowings 945000000.00
Credit Borrowings 704800000.00 290000000.00
Discounted Bills Not Yet Matured 1095200983.25 499371350.50
Unmatured Interest Payable 135244.18 461280.56
Total 1800136227.43 1734832631.06
Explanations of Categories of Short-Term Borrowings:
Details of Credit Borrowings
229 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Lending Institution Ending Balance Term of Borrowing
Tibet Autonomous Region Branch Bank of China 100000000.00 2025/9/24-2026/9/24
Tibet Autonomous Region Branch Bank of China 45000000.00 2025/9/30-2026/9/30
Tibet Autonomous Region Branch Bank of China 100000000.00 2025/11/11-2026/11/11
Tibet Autonomous Region Branch Bank of China 100000000.00 2025/11/17-2026/11/17
Tibet Autonomous Region Branch Bank of China 100000000.00 2025/12/24-2026/12/24
Langfang Development Zone Sub-branch of China
150000000.002025/11/18-2026/5/8
Construction Bank Corporation
Langfang Development Zone Sub-branch of China
100000000.002025/12/16-2026/6/4
Construction Bank Corporation
Langfang Development Zone Sub-branch of
8800000.002025/9/29-2026/9/28
Industrial Bank Corporation
Changji Hui Autonomous Prefecture Branch Bank of
1000000.002025/3/19-2026/3/19
China
Total 704800000.00
(2). Status of Overdue and Unpaid Short-Term Borrowings
□Applicable ?Not Applicable
The status of significant overdue and unpaid short-term borrowings is as follows:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
33. Financial Liabilities Held for Trading
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
34. Derivative Financial Liabilities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Foreign Exchange Derivative
297500.00
Instruments
Total 297500.00
Other Explanations:
None
35. Notes Payable
(1). Presentation of Notes Payable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Types Ending Balance Beginning Balance
Commercial Acceptance Bills
230 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Bank Acceptance Bills 1777053969.91 1416217579.96
Total 1777053969.91 1416217579.96
The total amount of overdue and unpaid notes payable at the end of the period is RMB 0 yuan. The
reason for non-payment upon maturity is: None
36. Accounts Payable
(1). Presentation of Accounts Payable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Payments for Engineering and
772692271.21547927602.59
Equipment
Provisional Estimation of Payments 220567330.50 315606671.86
Payments Payable 440571645.94 307171751.69
Other Payments 301353074.05 270827000.58
Total 1735184321.70 1441533026.72
(2). Significant Accounts Payable with an Aging Exceeding 1 Year or Overdue
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Reasons for Being Unpaid or
Items Ending Balance
Carried Forward
Crossflow (Xiamen) Fluid Technology Co. Ltd. 8407500.00 Not Yet Due for Settlement
Shandong Tianli Energy Co. Ltd. 4026000.00 Not Yet Due for Settlement
Hangzhou Fortune Gas Cryogenic Group Co. Ltd. 4000000.00 Not Yet Due for Settlement
Unable to Contact Due to
Inner Mongolia Huomei Yicheng Energy Co. Ltd. 3999553.50
Bankruptcy
Shenyang Turbine Machinery Co. Ltd. 3612000.00 Not Yet Due for Settlement
Xinjiang Huijia Real Estate Co. Ltd. 3430000.00 Not Yet Due for Settlement
Ningbo Lehui International Engineering Equipment
3303360.00 Not Yet Due for Settlement
Co. Ltd.Total 30778413.50 /
Other Explanations:
□Applicable ?Not Applicable
37. Advance Receipts
(1). Presentation of Advance Receipts
□Applicable ?Not Applicable
(2). Significant Advance Receipts with an Aging Exceeding 1 Year
□Applicable ?Not Applicable
(3). Amount of and Reason for Significant Changes in Book Value During the Reporting Period
□Applicable ?Not Applicable
231 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Other Explanations:
□Applicable ?Not Applicable
38. Contract Liabilities
(1). Status of Contract Liabilities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Advance Payments for Goods 746778983.64 916515321.35
Total 746778983.64 916515321.35
(2). Significant Contract Liabilities with an Aging Exceeding 1 Year
□Applicable ?Not Applicable
(3). Amount of and Reason for Significant Changes in Book Value During the Reporting Period
□Applicable ?Not Applicable
Other Explanations
□Applicable ?Not Applicable
39. Employee Compensation Payable
(1). Presentation of Employee Compensation Payable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Beginning Increase during Decrease during
Items Ending Balance
Balance the Current Period the Current Period
I. Short-Term Compensation 309884063.87 1829648359.37 1750157720.78 389374702.46
II. Post-employment Benefits -
249625.12146598396.37143727789.423120232.07
Defined Contribution Plans
III. Termination Benefits
IV. Other Benefits Due Within One
Year
Total 310133688.99 1976246755.74 1893885510.20 392494934.53
(2). Presentation of Short-Term Compensation
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Beginning Increase during Decrease during
Items Ending Balance
Balance the Current Period the Current Period
I. Salaries Bonuses Allowances
304833964.351664868341.471587021815.92382680489.90
and Subsidies
II. Employee Welfare Expenses -- 12070235.67 12070235.67
III. Social Insurance Premiums -- 95851701.23 92735010.62 3116690.61
Including: Medical Insurance
--87854799.9784753764.753101035.22
Premiums
232 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Work Injury Insurance
--7996901.267981245.8715655.39
Premiums
Maternity Insurance
Premiums
IV. Housing Provident Fund -- 18411880.86 18388927.61 22953.25
V. Union Funds and Employee
5050099.5222614200.1424109730.963554568.70
Education Funds
VI. Short-Term Paid Absence -- --
Other Short-Term
15832000.0015832000.00
Compensation
VII. Short-Term Profit-Sharing
Plans
Total 309884063.87 1829648359.37 1750157720.78 389374702.46
(3). Presentation of Defined Contribution Plans
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Beginning Increase during Decrease during
Items Ending Balance
Balance the Current Period the Current Period
1. Basic Old-Age Insurance 235107.66 142073320.56 139216594.33 3091833.89
2. Unemployment Insurance
14517.464525075.814511195.0928398.18
Premiums
1. Corporate Pension Contributions
Total 249625.12 146598396.37 143727789.42 3120232.07
Other Explanations:
□Applicable ?Not Applicable
40. Taxes Payable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Value-added Tax 22017172.18 25599120.74
Consumption Tax
Business Tax
Corporate Income Tax 133145066.29 223208443.42
Personal Income Tax 4981844.28 4141936.00
City Maintenance and Construction
8396974.742727290.52
Tax
Environmental Protection Tax 1344999.63 1785754.86
Education Surcharge 6139704.53 2091100.43
Water Resource Tax 11690927.45 13923721.05
Stamp Duty 6074142.90 6261699.28
Others 898044.58 473619.30
Total 194688876.58 280212685.60
Other Explanations:
233 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
None
41. Other Payables
(1). Presentation of Items
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Interest Payable
Dividend Payable 405000.00 409445.58
Other Payables 255944893.68 447705692.40
Total 256349893.68 448115137.98
Other Explanations:
□Applicable ?Not Applicable
(2). Interest Payable
Classified Presentation
□Applicable ?Not Applicable
Significant Overdue Interest Payable:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
(3). Dividends Payable
Classified Presentation
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Common Stock Dividends 405000.00 409445.58
Preferred Shares/Perpetual Bond Dividends
Classified as Equity Instruments
Total 405000.00 409445.58
Other explanations: For significant dividends payable overdue for more than 1 year the reasons for
non-payment should be disclosed:
None
(4). Other Payables
Presentation of Other Payables by Nature of Payments
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Accrued Expenses 120697128.08 115315362.37
Guarantee Deposits 107587506.36 84940254.59
Expenses for Litigation Settlement 233000000.00
Others 27660259.24 14450075.44
Total 255944893.68 447705692.40
Significant other payables with an aging exceeding 1 year or overdue
?Applicable □ Not Applicable
234 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Unit: Yuan Currency: RMB
Reasons for Being Unpaid or
Items Ending Balance
Carried Forward
Disabled Persons’ Federation of the 6th
Division Xinjiang Production and 6952578.01 Not Yet Due for Payment
Construction Corps
Total 6952578.01 /
Other Explanations:
□Applicable ?Not Applicable
42. Liabilities Held for Sale
□Applicable ?Not Applicable
43. Non-Current Liabilities Due within 1 Year
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Long-term Borrowings Due Within 1
280045900.02746288000.00
Year
Bonds Payable Due Within 1 Year
Long-Term Payables Due Within 1
--52520701.81
Year
Lease Liabilities Due Within 1 Year 1011449.31 3538091.97
Total 281057349.33 802346793.78
Other Explanations:
None
44. Other Current Liabilities
Status of Other Current Liabilities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Short-Term Bonds Payable
Return Refunds Payable
Long-tern Loan Interest Repayable
1332651.101384991.74
Within One Year
Sales Tax to be Carried Forward 61436860.42 83774472.00
Notes Endorsed But Not Yet
16600422.003625660.00
Derecognized
Total 79369933.52 88785123.74
Increase/Decrease in Short-Term Bonds Payable:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
235 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
45. Long-Term Borrowings
(1). Classification of Long-Term Borrowings
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Pledged Borrowings
Mortgaged Borrowings 300000000.00
Guaranteed Borrowings 1146608602.81 1303592044.83
Credit Borrowings 1052116521.04 490790000.00
Unmatured Interest Payable
Less: Long-Term Borrowings Due
280045900.02746288000.00
Within One Year
Total 1918679223.83 1348094044.83
Explanation of Classification of Long-Term Borrowings:
* Details of Credit Borrowings
Lending Institution Ending Balance Term of Borrowing
Changji Hui Autonomous Prefecture Branch Bank of China 9909090.90 2025/2/10-2028/2/10
Changji Hui Autonomous Prefecture Branch Bank of China 19818181.82 2025/2/13-2028/2/10
Changji Hui Autonomous Prefecture Branch Bank of China 19818181.82 2025/2/14-2028/2/10
Changji Hui Autonomous Prefecture Branch Bank of China 9909090.90 2025/2/17-2028/2/10
Changji Hui Autonomous Prefecture Branch Bank of China 39636363.64 2025/2/20-2028/2/10
Changji Hui Autonomous Prefecture Branch Bank of China 9909090.90 2025/3/11-2028/2/10
Changji Hui Autonomous Prefecture Branch Bank of China 990000.00 2025/3/19-2028/3/19
Changji Hui Autonomous Prefecture Branch Bank of China 39600000.00 2025/4/17-2028/3/19
Changji Hui Autonomous Prefecture Branch Bank of China 29700000.00 2025/4/22-2028/3/19
Changji Hui Autonomous Prefecture Branch Bank of China 28710000.00 2025/4/27-2028/3/19
Business Department of Baicheng Branch China
60000000.002024/12/28-2027/12/28
Construction Bank Corporation
Business Department of Baicheng Branch China
35000000.002025/4/24-2027/12/28
Construction Bank Corporation
Business Department of Baicheng Branch China
15000000.002025/4/29-2028/4/29
Construction Bank Corporation
Business Department of Baicheng Branch China
2037368.142025/12/11-2035/12/11
Construction Bank Corporation
Business Department of Baicheng Branch China
1309152.922025/12/22-2035/12/22
Construction Bank Corporation
Songyuan Branch Bank of Communications Co. Ltd. 28500000.00 2024/4/23-2027/4/23
Songyuan Branch Bank of Communications Co. Ltd. 33500000.00 2024/6/20-2027/6/17
Songyuan Branch Bank of Communications Co. Ltd. 42470000.00 2024/8/20-2027/8/20
Shengfang Sub-branch of Bazhou Agricultural Bank of China
169000000.002025/3/13-2028/3/6
Limited
236 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Lending Institution Ending Balance Term of Borrowing
Langfang Branch Huaxia Bank Co. Ltd. 108900000.00 2025/3/28-2028/3/27
Langfang Branch Bank of Communications Co. Ltd. 39700000.00 2024/9/27-2027/9/24
Langfang Branch Bank of Communications Co. Ltd. 59700000.00 2024/10/22-2027/10/21
Bazhou Sub-branch Industrial and Commercial Bank of
2000000.002025/5/16-2028/4/22
China Limited
Tibet Autonomous Region Branch Bank of China 95000000.00 2025/4/22-2028/4/22
Tibet Autonomous Region Branch Bank of China 95000000.00 2025/9/23-2028/4/22
Tibet Autonomous Region Branch Bank of China 47500000.00 2025/3/28-2028/3/28
Langfang Branch Bank of China 9500000.00 2025/4/27-2028/4/10
Less: Long-Term Borrowings Due Within One Year 41620000.02
Total 1010496521.02
* Details of Guaranteed Borrowings
Guaranteed
Lending Institution Ending Balance Guarantor Term of Borrowing
Party
Tongliao Branch China Construction Bank Tongliao
97333400.00 The Company 2023/5/22-2038/5/8
Corporation Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
75000000.002023/8/28-2038/6/20
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
41000000.002024/2/6-2027/2/4
of China Limited Meihua Meihua
Tongliao Branch China Construction Bank Tongliao
18785307.76 The Company 2024/6/6-2038/5/8
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
9733320.08 The Company 2024/6/13-2038/5/8
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
5839992.04 The Company 2024/6/19-2038/5/8
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
14599980.12 The Company 2024/6/26-2038/5/8
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
44500000.00 The Company 2024/10/21-2027/10/21
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
53400000.00 The Company 2024/10/21-2027/10/21
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
44500000.00 The Company 2024/10/24-2027/10/21
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
35600000.00 The Company 2024/10/24-2027/10/21
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
35600000.00 The Company 2024/11/14-2027/10/21
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
35600000.00 The Company 2024/11/18-2027/10/21
Corporation Meihua
Tongliao Branch China Construction Bank Tongliao
17800000.00 The Company 2024/11/20-2027/10/21
Corporation Meihua
237 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Guaranteed
Lending Institution Ending Balance Guarantor Term of Borrowing
Party
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
14819832.282024/12/5-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
4538021.202024/12/12-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
3978347.922024/12/19-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
2095843.432024/12/25-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
20725937.662025/2/13-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
5033161.442025/2/20-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
2618621.002025/3/13-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
17000000.002025/3/25-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
4345889.202025/4/10-2039/11/27
of China Limited Meihua Meihua
Tongliao Branch China Construction Bank Tongliao
145708000.00 The Company 2025/5/20-2038/5/8
Corporation Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
924221.722025/7/4-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
617779.602025/8/6-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
1786020.002025/8/20-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
6124927.362025/11/6-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
39000000.002025/12/23-2039/11/27
of China Limited Meihua Meihua
Tongliao Huikai Sub-branch Agricultural Bank Xinjiang Tongliao
14000000.002025/12/26-2039/11/27
of China Limited Meihua Meihua
Wujiaqu Sub-branch China Construction Bank Xinjiang
97000000.00 The Company 2024/7/25-2027/7/25
Corporation Meihua
Tongliao
Tibet Autonomous Region Branch Bank of Meihua
175000000.00 The Company 2023/3/31-2026/3/31
China Xinjiang
Meihua
Tongliao
Tibet Autonomous Region Branch Bank of Meihua
35000000.00 The Company 2023/4/23-2026/3/31
China Xinjiang
Meihua
238 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Guaranteed
Lending Institution Ending Balance Guarantor Term of Borrowing
Party
Tongliao
Tibet Autonomous Region Branch Bank of Meihua
27000000.00 The Company 2024/6/11-2027/6/11
China Xinjiang
Meihua
Less: Long-term Borrowings Due Within One
238425900.00
Year
Total 908182702.81
Other Explanations:
□Applicable ?Not Applicable
46. Bonds Payable
(1). Bonds Payable
□Applicable ?Not Applicable
(2). Specific Status of Bonds Payable: (Excluding other financial instruments such as preferred
shares and perpetual bonds classified as financial liabilities)
□Applicable ?Not Applicable
(3). Explanation of Convertible Corporate Bonds
□Applicable ?Not Applicable
Accounting Treatment of and Judgement Basis for Rights to Convert Shares
□Applicable ?Not Applicable
(4). Explanation of Other Financial Instruments Classified as Financial Liabilities
Overview of other financial instruments such as preferred shares and perpetual bonds outstanding at the
end of the period
□Applicable ?Not Applicable
Table of Changes in Financial Instruments such as Preferred Shares and Perpetual Bonds Outstanding at
the End of the Period
□Applicable ?Not Applicable
Explanation of the Basis for Classifying Other Financial Instruments as Financial Liabilities:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
47. Lease Liabilities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Lease Payments 2154152.79 5896067.82
Less: Unrecognized Financing Costs 129736.84 372835.01
Subtotal 2024415.95 5523232.81
239 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Less: Lease Liabilities Due Within
One Year 1011449.31 3538091.97
Total 1012966.64 1985140.84
Other Explanations:
None
48. Long-Term Payables
Presentation of Items
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Long-term Payables 10500000.00 10500000.00
Special Payables
Payables for Patent Royalties 52520701.81
Subtotal 10500000.00 63020701.81
Less: Long-term Payables Due Within
52520701.81
One Year
Total 10500000.00 10500000.00
Other Explanations:
□Applicable ?Not Applicable
Long-Term Payables
(1).Long-term Payables Presented by Nature of Payments
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Guarantee Deposits 10500000.00 10500000.00
Payables for Patent Royalties 52520701.81
Less: Long-term Payables Due Within
52520701.81
One Year
Total 10500000.00 10500000.00
Other Explanations:
None
Special Payables
(1).Special Payables Presented by Nature of Payments
□Applicable ?Not Applicable
49. Long-term Employee Compensation Payable
?Applicable □ Not Applicable
(1). Schedule of Long-term Employee Benefits Payable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
I. Post-employment Benefits - Net Defined
240 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Benefit Obligation
II. Termination Benefits
III. Other Long-Term Benefits 7474640.65
Total 7474640.65
Severance pay accrued in accordance with relevant provisions of Thai Labour Protection Act.
(2). Changes in defined benefit plans
Present value of defined benefit obligation:
□Applicable ?Not Applicable
Plan assets:
□Applicable ?Not Applicable
Net defined benefit obligation (net assets):
□Applicable ?Not Applicable
Description of the nature of defined benefit plans related risks and their impact on the Company’s
future cash flows timing and uncertainty:
□Applicable ?Not Applicable
Description of significant actuarial assumptions and results of sensitivity analysis of defined benefit
plans:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
50. Estimated Liabilities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance Reasons for Formation
Guarantees Provided to
External Parties
Pending Litigation 32438161.92
Product Quality
Assurance
Restructuring Obligations
Loss Contracts to be
Executed
Return Refunds Payable
Others
Total 32438161.92 /
Other Explanations: Including related significant assumptions for significant estimated liabilities.Estimation Explanation: None
51. Deferred Revenue
Status of Deferred Revenue
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
241 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Increase during Decrease during
Beginning Reasons for
Items the Current the Current Ending Balance
Balance Formation
Period Period
Government
381020645.51 32833333.06 46228990.19 367624988.38 Related to assets
Grants
Total 381020645.51 32833333.06 46228990.19 367624988.38 /
Other Explanations:
?Applicable □ Not Applicable
Refer to Section X for details of government grants for the Company.
52. Other Non-current Liabilities
□Applicable ?Not Applicable
53. Share Capital
?Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase/Decrease (+ -) in the Changes During the Current
Period
Capital
Sto
Beginning Reserve
New ck Ending Balance
Balance s
Shares Div Others Subtotal
Convers
Issued ide
ion into
nd
Shares
Total
Quantity of 2852788750.00 -- -- -- -48547100.00 -48547100.00 2804241650.00
Shares
Other Explanations:
Refer to Section III - Basic Information of the Company for details of changes in share capital.
54. Other Equity Instruments
(1). Overview of other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the period
□Applicable ?Not Applicable
(2). Table of Changes in Financial Instruments such as Preferred Shares and Perpetual Bonds
Outstanding at the End of the Period
□Applicable ?Not Applicable
Explanation of increase/decrease in other equity instruments during the current period reasons for such
changes and basis for relevant accounting treatments:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
242 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
55. Capital Reserves
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Decrease during the
Items Beginning Balance Ending Balance
Current Period Current Period
Capital Premiums (Share
263154867.05--229404999.4633749867.59
Premiums)
Other Capital Reserves
Total 263154867.05 -- 229404999.46 33749867.59
Other Explanations: Including explanation of increase/decrease in the current period and reasons for
such changes:
The decrease in capital reserve for the current period was mainly attributable to the resolutions of
the 23rd meeting of the 10th session of the Board of Directors held on December 11 2025 and the 2025
second extraordinary general meeting held on December 29 2025. Pursuant to these resolutions the
Company cancelled 48547100 shares held in the share repurchase account. Upon cancellation of
treasury shares the total par value of the cancelled shares calculated based on the par value per share
and the number of shares cancelled reduced share capital by 48547100.00 yuan. The difference
between the book balance of the cancelled treasury shares and the share capital was charged against
capital reserve in the amount of 229404999.46 yuan. Any excess not covered by capital reserve was
offset against surplus reserve of 214120621.78 yuan. Upon completion of the cancellation the
Company’s total share capital decreased from 2852788750 shares to 2804241650 shares.
56. Treasury Shares
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Decrease during the
Items Beginning Balance Ending Balance
Current Period Current Period
Share Repurchase for
287771455.80204301265.44492072721.24
Capital Decrease
Total 287771455.80 204301265.44 492072721.24
Other Explanations: Including explanation of increase/decrease in the current period and reasons for
such changes:
The Company held the 13th meeting of the 10th session of the Board of Directors on September 23
2024 and the 2024 second extraordinary general meeting on October 11 2024 at which the Proposal on
the Repurchase of Company Shares via Centralized Auction Trading was considered and approved. The
Company agreed to repurchase its shares using self-owned funds through centralized bidding with a
total repurchase amount of not less than 300 million yuan and not more than 500 million yuan. The
repurchase period is 12 months from the date of approval by the general meeting. The repurchase price
shall not exceed 12 yuan per share. The repurchased shares will be cancelled to reduce registered capital.As at the close of trading on September 2 2025 the share repurchase plan had been fully
implemented. The Company had repurchased 48547100 shares representing 1.70% of the total share
capital of 2852788750 shares. The highest repurchase price was 10.97 yuan per share the lowest price
243 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
was 9.10 yuan per share and the average repurchase price was 10.13 yuan per share. The total amount of
funds used was 492.017 million yuan (excluding transaction costs).Pursuant to the resolutions of the 23rd meeting of the 10th session of the Board of Directors held on
December 11 2025 and the 2025 second extraordinary general meeting held on December 29 2025 the
Company cancelled 48547100 shares held in the share repurchase account. The total par value of the
cancelled shares calculated based on the par value per share and the number of shares cancelled
reduced share capital by 48547100.00 yuan. The difference between the book balance of the cancelled
treasury shares and the share capital was charged against capital reserve of 229404999.46 yuan. If the
capital reserve was insufficient to absorb the difference the remaining amount reduced surplus reserve
by 214120621.78 yuan.
57. Other Comprehensive Income
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amounts Incurred during the Current Period
Less:
Amou
nt Less:
Recor Amount
ded in Recorde
Other d in
Comp Other Attri
rehens Compre buta
ive hensive ble
Amounts Incom Income toe in in the
Beginning Incurred Previo Previou Attributable to Min EndingItems Balance during the us s Less: Income the ParentCurrent ority Balance
Period Before Period Periods
Tax Expenses Company After
Tax Shar
Income Tax s and and eholTransf Transfer ders
erred red to Afte
to the Retaine r
Profit d Tax
or Earning
Loss s for the
for the Current
Curre Period
nt
Period
I. Other Comprehensive
Income That Cannot Be -54999862.00 -139327470.00 -41302439.50 -98025030.50 -153024892.50
Reclassified to Profit or Loss
Including: Amount of
Changes in Remeasured
Defined Benefit Plans
Other Comprehensive
Income That Cannot Be
Reclassified to Profit or Loss
Under Equity Method
Changes in Fair Value of
Other Equity Instrument -54999862.00 -139327470.00 -41302439.50 -98025030.50 -153024892.50
Investments
Changes in Fair Value of
Enterprises’ Own Credit Risk
II. Other Comprehensive
Income to Be Reclassified to -5099.46 -6190180.25 -6190180.25 -6195279.71
244 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Profit or Loss
Including: Other
Comprehensive Income That
Can Be Transferred to Profit
or Loss Under Equity Method
Changes in Fair Value of
Other Debt Investments
Amount of Financial Assets
Reclassified and Recorded in
Other Comprehensive
Income
Credit Impairment Reserves
for Other Debt Investments
Cash Flow Hedging Reserves
Converted Differences in
Foreign Currency Financial -5099.46 -6190180.25 -6190180.25 -6195279.71
Statements
Total Other Comprehensive
Income -55004961.46 -145517650.25 -41302439.50 -104215210.75 -159220172.21
Other explanations including the adjustments to the transfer of effective portion of cash flow hedge
profit or loss to initially recognized amount of hedged items: None
58. Special Reserves
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Decrease during the
Items Beginning Balance Ending Balance
Current Period Current Period
Work Safety
4743615.6756762781.1156513777.104992619.68
Expenses
Total 4743615.67 56762781.11 56513777.10 4992619.68
Other explanations including explanation of increase/decrease for the current period and reasons for
such changes:
The increase in special reserves during the current period was mainly attributable to the
appropriation of safety production expenses in accordance with the Administrative Measures for the
Collection and Utilization of Enterprise Work Safety Funds (Cai Zi [2022] No. 136) issued by the
Ministry of Finance.
59. Surplus Reserves
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Decrease during the
Items Beginning Balance Ending Balance
Current Period Current Period
Statutory Surplus
1426394375.00167591928.79214120621.781379865682.01
Reserves
Discretionary Surplus
Reserves
Reserve Funds
Enterprise Expand
Funds
Others
245 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Total 1426394375.00 167591928.79 214120621.78 1379865682.01
Explanations of surplus reserves including including explanation of increase/decrease for the current
period and reasons for such changes:
The increase in surplus reserve for the current period was attributable to the appropriation of the
statutory surplus reserve at 10% of net profit for the period in accordance with the relevant provisions of
the Company Law and the Company’s Articles of Association.The decrease in surplus reserve for the current period is detailed in Section VII.55 Capital Reserve.
60. Undistributed Profits
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items For the Current Period For the Previous Period
Undistributed Profits at the End of the Previous Period Before
10370640110.479427722131.86
Adjustment
Total Amount of Undistributed Profits at the Beginning of the
Adjustment (Increase + decrease－)
Undistributed Profits at the Beginning of the Post-adjustment 10370640110.47 9427722131.86
Plus: Net Profit Attributable to the Owners of the Parent
3280879912.12740427215.56
Company for the Current Period
Minus: Withdrawal of Statutory Surplus Reserves 167591928.79 100099930.70
Withdrawal of Discretionary Surplus Reserves
Withdrawal of General Risk Reserves
Ordinary Share Dividends Payable 1199987325.29 1697409306.25
Ordinary Share Dividends Transferred to Share Capital
Retained Earnings from the Carry-forward of Other
Comprehensive Income
Undistributed Profits at the End of the Period 12283940768.49 10370640110.47
Details of Undistributed Profits at the Beginning of the Adjustment:
1. Due to retrospective adjustments under the Accounting Standards for Business Enterprises and related
new regulations the amount of undistributed profits at the beginning of the impact period is RMB 0
yuan.
2. Due to changes in the accounting standards the amount of undistributed profits at the beginning of the
impact period is RMB 0 yuan.
3. Due to correction of significant accounting errors the amount of undistributed profits at the beginning
of the impact period is RMB 0 yuan.
4. Due to changes in the consolidation scope caused by the same control the amount of undistributed
profits at the beginning of the impact period is RMB 0 yuan.
5. Due to other adjustments the total amount of undistributed profits at the beginning of the impact
period is RMB 0 yuan.
61. Operating Revenues and Operating Costs
(1). Status of Operating Revenues and Operating Costs
?Applicable □ Not Applicable
246 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Unit: Yuan Currency: RMB
Amount Incurred during the Current Period Amount Incurred during the Previous Period
Items
Revenues Costs Revenues Costs
Main Business 24010187159.36 19469065371.08 24877721922.05 19908725831.86
Other Business 198487947.34 140334003.00 191566372.57 127972982.88
Total 24208675106.70 19609399374.08 25069288294.62 20036698814.74
(2). Decomposition Information of Operating Revenues and Operating Costs
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
(3). Explanation of Performance Obligations
□Applicable ?Not Applicable
(4). Explanation of Allocation to Remaining Performance Obligations
□Applicable ?Not Applicable
(5). Significant Changes in Contracts or Significant Adjustments to Transaction Prices
□Applicable ?Not Applicable
Other Explanations:
(1) Decomposition Information of Operating Revenues and Operating Costs
20252024
Items
Revenues Costs Revenues Costs
By product
Food Flavor and Texture
7469939525.436518857108.287945120706.106399514452.76
Optimization Products
Animal Nutrition Amino
14201982767.5911243468450.9914623714419.1611749902019.51
Acids
Human Medical Amino
740403825.14495213216.66476308595.90353986358.20
Acids
Others 1597861041.20 1211526595.15 1832578200.89 1405323001.39
Total 24010187159.36 19469065371.08 24877721922.05 19908725831.86
By region
Domestic Sales 16875325367.19 13956612103.42 16395093665.85 13748410787.61
Export Sales 7134861792.17 5512453267.66 8482628256.20 6160315044.25
Total 24010187159.36 19469065371.08 24877721922.05 19908725831.86
(2) Top Five Customers by Revenue from Principal Operations
Contribution to Operating
Items 2025
Revenues (%)
First 642314209.83 2.65
Second 615951587.57 2.54
Third 472829749.88 1.95
Fourth 406736567.66 1.68
Fifth 401949281.96 1.66
247 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Total 2539781396.90 10.48
62. Taxes and Surcharges
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Consumption Tax
Business Tax
Urban Maintenance and Construction
33618913.9231477136.54
Tax
Education Surcharge 26577260.20 25682634.62
Resource Tax 58211723.14 53821708.55
Property Tax 56573504.24 51354671.36
Land Use Tax 36904185.84 35595194.65
Vehicle and Vessel Usage Tax 74088.64 72259.77
Stamp Duty 23778917.98 24263975.48
Environmental Protection Tax 6919371.22 7500221.62
Others 4088495.59 5694997.25
Total 246746460.77 235462799.84
Other Explanations:
None
63. Sales Expenses
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Transportation Expenses 169823921.54 170579059.79
Company Expenses 31021068.19 41609036.78
Promotion Expenses 21447014.45 30030007.98
Employee Expenses 78096698.65 89596281.53
Depreciation and Amortization 17103746.65 13834849.03
Warehousing Expenses 45478711.32 41217274.36
Total 362971160.80 386866509.47
Other Explanations:
None
64. Administrative Expenses
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Company Expenses 208752780.87 201618166.80
Employee Expenses 679637106.50 650833422.51
248 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Depreciation and Amortization 103158534.59 85480610.88
Total 991548421.96 937932200.19
Other Explanations:
None
65. Research and Development Expenses
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Employee Expenses 56590938.69 54114060.23
Material Consumption 269330003.99 266560146.06
Depreciation Expenses 23819514.99 21102386.05
Other Expenses 39411035.59 41126672.71
Total 389151493.26 382903265.05
Other Explanations:
None
66. Financial Expenses
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Interest Expenses 52269326.61 80472368.46
Including: Interest Expense on Lease
284610.54407425.12
Liabilities
Less: Interest Income 59618168.61 97971379.97
Net Interest Expense -7348842.00 -17499011.51
Exchange Profits and Losses -2981024.94 -113706529.39
Bank Charges and Other Expenses 14334419.21 13941609.23
Total 4004552.27 -117263931.67
Other Explanations:
None
67. Other Income
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Classification by Nature
Period Period
Government Subsidies 227240840.56 203882409.00
Refunds of Personal Income Tax
5574047.923103558.18
Handling Fees
Additional Deduction of Value-added
5496884.8735642447.20
Tax
Value-added Tax Exemption for
31500.0012000.00
Retired Veterans
Total 238343273.35 242640414.38
Other Explanations:
249 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
None
68. Investment Income
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during Amount Incurred during the
Items
the Current Period Previous Period
Investment Income from Long-term Equity Investment
-2117014.67-3018027.22
Accounted for by the Equity Method
Investment Income from the Disposal of Long-term Equity
-1547547.99
Investments
Investment Income from Financial Assets Held for Trading
during the Holding Period
Dividend Income from Other Equity Instrument Investments
3308800.002816000.00
during the Holding Period
Dividend Income from Debt Investments during the Holding
1485849.061485849.06
Period
Dividend Income from other Debt Investments during the
19062166.6816461436.55
Holding Period
Investment Income from the Disposal of Financial Assets
35600287.2813854020.93
Held for Trading
Investment Income from the Disposal of Other Equity
Instrument Investments
Investment Income from the Disposal of Debt Investments
Investment Income from the Disposal of Other Debt
507559.70141277.76
Investments
Debt Restructuring Gains
Total 57847648.05 30193009.09
Other Explanations:
None
69. Gains from Net Exposure Hedging
□Applicable ?Not Applicable
70. Gains from Changes in Fair Value
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Amount Incurred during
Sources of Gains from Changes in Fair Value
Current Period the Previous Period
Financial Assets Held for Trading 32838480.38 14826169.53
Including: Gains from Changes in Fair Value Arising from
8567360.001184930.00
Derivative Financial Instruments
Financial Liabilities Held for Trading
Investment Properties Measured at Fair Value
Total 32838480.38 14826169.53
Other Explanations:
250 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
None
71. Credit Impairment Losses
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Bad Debt Losses on Notes Receivable
Bad Debt Losses on Accounts
Receivable
Bad Debt Losses on Other
Receivables
Impairment Losses on Debt
Investments
Impairment Losses on Other Debt
Investments
Bad Debt Losses on Long-term
Receivables
Financial Guarantee-related
Impairment Losses
Bad Debt Losses 10379492.70 3888525.41
Total 10379492.70 3888525.41
Other Explanations:
None
72. Asset Impairment Losses
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Amount Incurred during
Items
Current Period the Previous Period
I. Impairment Losses on Contract Assets
II. Inventory Write-down Losses and Contract Performance
-14707452.39-5258570.82
Cost Impairment Losses
III. Impairment Losses on Long-term Equity Investments
IV. Impairment Losses on Investment Properties
V. Impairment Losses on Fixed Assets -21327482.45 -1723356.44
VI. Impairment Losses on Engineering Materials
VII. Impairment Losses on Construction in Progress
VIII. Impairment Losses on Productive Biological Assets
IX. Impairment Losses on Oil and Gas Assets
X. Impairment Losses on Intangible Assets
XI. Impairment Losses on Goodwill
XII. Others
Total -36034934.84 -6981927.26
Other Explanations:
None
251 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
73. Gains from Disposal of Assets
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Fixed Assets 781820.17 29968.32
Intangible Assets 52907.04
Total 834727.21 29968.32
Other Explanations:
None
74. Non-operating Revenues
Status of Non-operating Revenues
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amounts Recorded in
Amount Incurred during the Amount Incurred during the Non-recurring Profits or
Items
Current Period Previous Period Losses for the Current
Period
Total Gains from Disposal
199510.44--199510.44
of Non-current Assets
Including: Gains from
199510.44--199510.44
Disposal of Fixed Assets
Gains from Disposal
of Intangible Assets
Gains from Exchange of
Non-monetary Assets
Donation Receipts
Government Grants
Revenue from Default
3836017.72791383.423836017.72
Compensation
Insurance Claims 2934499.03 10146977.57 2934499.03
Income from Carbon
127624199.99
Emission Rights
Litigation 28618647.27 28618647.27
Enterprise Merger Not
831441015.05831441015.05
Under the Same Control
Others 3744575.69 2225435.44 3744575.69
Total 870774265.20 140787996.42 870774265.20
Other Explanations:
□Applicable ?Not Applicable
75. Non-operating Expenditure
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
252 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Amounts Recorded in
Amount Incurred during the Amount Incurred during the Non-recurring Profits or
Items
Current Period Previous Period Losses for the Current
Period
Total Losses from Disposal
of Non-current Assets
Including: Losses from
Disposal of Fixed Assets
Losses from
Disposal of Intangible
Assets
Losses from Exchange of
Non-monetary Assets
External Donations 2500000.00 3500000.00 2500000.00
Settlement Costs of
233000000.00
Litigation
Losses from Destruction or
Scrapping of Non-current 37963945.48 34405586.69 37963945.48
Assets
Default Losses 1888523.78 1583575.13 1888523.78
Others 7784137.43 10122939.94 7784137.43
Total 50136606.69 282612101.76 50136606.69
Other Explanations:
None
76. Income Tax Expenses
(1). Table of Income Tax Expenses
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Current Income Tax Expenses 453657638.02 593906133.42
Deferred Income Tax Expenses -4837561.20 15127342.15
Total 448820076.82 609033475.57
(2). Adjustment Process for Accounting Profits and Income Tax Expenses
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred
Items during the Current
Period
Total Profits 3729699988.92
Income Tax Expenses Calculated at Statutory/Applicable Tax Rates 559454998.34
Impact of Different Tax Rates Applicable to Subsidiaries 22002519.72
Impact of Income Tax for the Previous Period Before Adjustment -22528090.92
253 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Impact of Non-taxable Income -113632677.51
Impact of Non-deductible Costs Expenses and Losses 4129180.99
Impact of Deductible Losses from Unrecognized Deferred Income Tax Assets for the Previous
-30593503.07
Periods Before Usage
Impact of Deductible Temporary Difference or Deductible Losses from Unrecognized
39912634.83
Deferred Income Tax Assets for the Current Period
Impact of Additional Deduction of Research and Development Expenses -9924985.56
Income Tax Expenses 448820076.82
Other Explanations:
□Applicable ?Not Applicable
77. Other Comprehensive Income
?Applicable □ Not Applicable
Refer to the notes for details.
78. Cash Flow Statement Items
(1).Cash Related to Operating Activities
Other received cash related to operating activities received
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Interest Income 58103040.72 114039182.47
Income from Government Grants 212063058.58 202025706.38
Others 44100807.11 132878364.29
Total 314266906.41 448943253.14
Explanation of other received cash related to operating activities:
None
Other paid cash related to operating activities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Expense Expenditure 995239495.1 670841147.77
Temporary Borrowings 1606224.14 1091366.04
Other Expenditures 20196546.50 38323115.45
Total 1017042265.74 710255629.26
Explanation of other paid cash related to operating activities:
None
(2).Cash Related to Investment Activities
Significant received cash related to investment activities
□Applicable ?Not Applicable
Significant paid cash related to investment activities
254 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Amount Incurred during the
Items
Current Period Previous Period
Acquisition and construction of property plant
and equipment intangible assets and other 2085097608.71 2004423105.69
long-term assets
Purchases of wealth management products trust 1021970127.42 881089058.61
products and structured deposits
Net cash paid for equity acquisitions not under 154418006.87
common control
Total 3261485743.00 2885512164.30
Explanation of significant paid cash related to investment activities:
None
Other received cash related to investment activities
□Applicable ?Not Applicable
Other paid cash related to investment activities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Investment Losses 25064758.89 9047530.00
Total 25064758.89 9047530.00
Explanation of other paid cash related to investment activities:
None
(3).Cash Related to Financing Activities
Other received cash related to financing activities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Restricted Monetary Funds 619671768.29 389646523.23
Others 12185810.00
Total 631857578.29 389646523.23
Explanation of other received cash related to financing activities:
None
Other paid cash related to financing activities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Restricted Monetary Funds 468641353.64 647996830.06
Repurchased Shares 204301265.44 571185981.88
Principal and Lease Deposits for
4303255.274516102.75
Lease Liabilities
Total 677245874.35 1223698914.69
Explanation of other paid cash related to financing activities:
255 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
None
Changes in liabilities arising from financing activities
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Current Period Decrease during the Current Period
Beginning
Items Cash Changes Non-cash Cash Changes Non-cash Ending Balance
Balance
Changes Changes
Short-term
1734832631.064235260124.5912112521.394058438557.77123630491.841800136227.43
Borrowings
Long-term
2094382044.831068223079.04963880000.022198725123.85
Borrowings
Lease
5523232.811954568.734303255.271150130.322024415.95
Liabilities
Total 3834737908.70 5303483203.63 14067090.12 5026621813.06 124780622.16 4000885767.23
(4).Explanation of Presenting Cash Flows at Net Amount
□Applicable ?Not Applicable
(5).Significant events and financial effects that do not involve current cash receipts or payments
but may affect the company's financial position or may affect the company’s cash flows in the
future
□Applicable ?Not Applicable
79. Supplementary Information for Cash Flow Statements
(1). Supplementary Information for Cash Flow Statements
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount for the Amount for the
Supplementary Information
Current Period Previous Period
1．Adjusting Net Profit to Cash Flows from Operating Activities:
Net Profit 3280879912.10 2740427215.56
Plus: Asset Impairment Reserves 36034934.84 6981927.26
Credit Impairment Losses -10379492.70 -3888525.41
Depreciation of Fixed Assets Depletion of Oil and Gas Assets and
1352389043.851275227848.29
Depreciation of Productive Biological Assets
Amortization of Right-of-Use Assets 3948482.23 3715360.79
Amortization of Intangible Assets 49442167.88 45749650.73
Amortization of Long-term Deferred Expenses 41023855.20 36976072.81
Losses on Disposal of Fixed Assets Intangible Assets and Other Long-term
-834727.21-29968.32
Assets ("-" for gains)
Losses on Scrapping of Fixed Assets ("-" for gains) 37764435.04 34405586.69
Losses on Changes in Fair Value ("-" for gains) -32838480.38 -14826169.53
Financial Expenses ("-" for gains) 19056345.85 -29377272.58
Investment Losses ("-" for gains) -57847648.05 -30193009.09
256 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Decrease in Deferred Income Tax Assets ("-" for increase) 16747667.25 14034060.21
Increase in Deferred Income Tax Liabilities ("-" for decrease) -21585228.45 1093281.94
Decrease in Inventories ("-" for increase) 32921201.66 202965494.39
Decrease in Operating Receivables ("-" for increase) 291262779.09 306096165.23
Increase in Operating Payables ("-" for decrease) -197284586.92 37357071.50
Others *1 -831441015.05
Net Cash Flow Arising from Operating Activities 4009259646.23 4626714790.47
2．Significant Investment and Financing Activities not Involving Cash Receipts or Payments:
Debt to Capital
Convertible Corporate Bonds Due Within One Year
Financing Leasing Fixed Assets
3．Net Changes in Cash and Cash Equivalents:
Ending Cash Balance 4006435846.79 4131859602.14
Minus: Beginning Cash Balance 4131859602.14 4780614442.73
Plus: Ending Cash Equivalent Balance
Minus: Beginning Cash Equivalent Balance
Net Increase in Cash and Cash Equivalents -125423755.35 -648754840.59
*1 Other items mainly represent negative goodwill arising from business combinations not under
common control during the current period.Note: Bank acceptance bills received from the sale of goods and subsequently endorsed and
transferred by the Company amounted to 494088963.30 yuan.
(2). Net Cash Paid for Acquiring Subsidiaries for the Current Period
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount
Cash or cash equivalents paid for business combinations in the current period 768296087.74
Less: Cash and cash equivalents held by subsidiaries at the acquisition date 613878080.87
Add: Cash or cash equivalents paid for business combinations in prior periods --
Net Cash Paid for Acquiring Subsidiaries 154418006.87
Other Explanations:
None
(3). Net Cash Received for Disposing Subsidiaries for the Current Period
□Applicable ?Not Applicable
(4). Composition of Cash and Cash Equivalents
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
I. Cash 4006435846.79 4131859602.14
Including: Cash on Hand 3267.17 --
Bank Deposits Available for Immediate Payment 3866955277.83 4112890088.86
Other Monetary Funds Available for Immediate
139477301.7918969513.28
Payment
257 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Deposits with Central Banks Available for Payment
Interbank Deposits
Interbank Placements
II. Cash Equivalents
Including: Bond Investment Due within Three Months
III. Ending Balance of Cash and Cash Equivalents 4006435846.79 4131859602.14
Including: Cash and Cash Equivalents Restricted for Use
by the Parent Company or Subsidiaries within the Group
(5). Instances Where Usage is Restricted but Still Classified as Cash and Cash Equivalents
□Applicable ?Not Applicable
(6). Monetary Funds Not Classified as Cash and Cash Equivalents
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance Reason
Margin Deposits for Bank 428515211.93 Not Available for
277489110.74
Acceptance Bills Immediate Withdrawal
Funds in Transit Not Available for
2478943.96
Immediate Withdrawal
Guarantee Deposits and 113485.46 Not Available for
669172.00
Other Restricted Funds Immediate Withdrawal
Unexpired Interest Not Available for
1098705.10567894.43
Receivable Immediate Withdrawal
Total 281735931.80 429196591.82 /
Other Explanations:
□Applicable ?Not Applicable
80. Notes to Items in the Statement of Changes in Owner's Equity
Explanation of Name of "Other" Items Adjusted Against the Ending Balance for the Previous Year
Adjusted Amount and Other Matters:
□Applicable ?Not Applicable
81. Foreign Currency Monetary Items
(1).Foreign Currency Monetary Items
?Applicable □ Not Applicable
Unit: Yuan
Ending Foreign Ending Balance Converted to
Items Conversion Rate
Currency Balance Renminbi
Monetary Funds 512591969.27
Including: US Dollar 70274067.47 7.0288 493827298.77
Euro 2211985.26 8.2355 18216804.07
Hong Kong Dollar 6887.68 0.9032 6221.09
British Pound 34.2 9.4345 322.66
258 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Singapore Dollar 93852.93 5.4586 512305.45
Japanese Yen 513405.00 0.0449 22997.77
Australian Dollar 1283.68 4.6892 6019.46
Accounts Receivable 205242499.24
Including: US Dollar 29213865.34 7.0288 205242499.24
Other Receivables 491592.38
Including: US Dollar 60000.00 7.0288 421728.00
Singapore Dollar 12799.50 5.4586 69864.38
Other Current Assets 30894.53
Including: Singapore Dollar 5659.83 5.4586 30894.53
Long-term Receivables 233244.15
Including: Singapore Dollar 42730.05 5.4586 233244.15
Accrued Employee
1023201.96
Compensation
Including: Hong Kong
369666.000.9032333889.72
Dollar
Singapore Dollar 126280.83 5.4586 689312.24
Accounts Payable 5258240.29
Including: US Dollar 747613.38 7.0288 5258240.29
Other Payables 9540828.58
Including: US Dollar 1196232.96 7.0288 8408082.22
Japanese Yen 25263150.00 0.0449 1131713.34
Singapore Dollar 187.50 5.4586 1033.02
Lease Liabilities 681913.56
Including: Singapore Dollar 124926.41 5.4586 681913.56
Non-current Liabilities Due
883020.09
Within One Year
Including: Singapore Dollar 161766.77 5.4586 883020.09
Other Explanations:
None
(2).Explanation of overseas operating entities including disclosure of their main overseas
operating locations functional currencies and selection basis for significant overseas operating
entities as well as disclosure of reasons for changes in functional currencies
?Applicable □ Not Applicable
Whether
Main Operating Functional Functional
Company Name Basis of Determination
Location Currency Currency Has
Changed
Hong Kong The currency of the primary economic
Hong Kong CNY No
Meihua environment in which the entity operates
Hong Kong The currency of the primary economic
Hong Kong US Dollar No
Holdings environment in which the entity operates
259 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Cayman The currency of the primary economic
Cayman Islands US Dollar No
Company environment in which the entity operates
Singapore The currency of the primary economic
Singapore US Dollar No
Company environment in which the entity operates
The currency of the primary economic
SPV Singapore US Dollar No
environment in which the entity operates
The currency of the primary economic
TP Thailand Thai Baht No
environment in which the entity operates
The currency of the primary economic
PUS United States US Dollar No
environment in which the entity operates
The currency of the primary economic
UP United States US Dollar No
environment in which the entity operates
The currency of the primary economic
PUSA United States US Dollar No
environment in which the entity operates
The currency of the primary economic
PJP Japan Japanese Yen No
environment in which the entity operates
The currency of the primary economic
PSG Singapore US Dollar No
environment in which the entity operates
The currency of the primary economic
PEU Germany Euro No
environment in which the entity operates
In preparing the consolidated financial statements the financial statements of foreign operations are
translated into the presentation currency of the Company (i.e. the functional currency of the parent
company) using the following exchange rates:
Balance Sheet Items (Assets and Income Statement Items (Income
Item Paid-in Capital
Liabilities) and Expenses)
Exchange Rate
Spot Exchange Rate at the Balance Sheet Approximate Exchange Rates at Historical Exchange
Used for
Date the Date of Transactions Rates
Translation
82. Leases
(1). As Lessee
?Applicable □ Not Applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable ?Not Applicable
Lease expenses on short-term leases or leases of low-value assets with simplified treatment
?Applicable □ Not Applicable
RMB 4238037.13 yuan
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Interest of Lease Liabilities 284610.54 407425.12
Expenses on Short-term Leases 3953426.59 1108049.47
Sale-leaseback Transactions and Judgement Basis
260 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
□Applicable ?Not Applicable
Total cash outflows related to leases: 8256681.86 (Unit: Yuan Currency: RMB)
(2). As Lessor
Operating leases as lessor
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Including: Revenue Related to
Items Revenue from Leases Variable Lease Payments Not
Recorded in Lease Receipts
Revenue from Leases 14135702.66
Total 14135702.66
Financing leases as lessor
□Applicable ?Not Applicable
Adjustment Table for Undiscounted Lease Receipts and Net Lease Investments
□Applicable ?Not Applicable
Undiscounted Lease Receipts over the Next Five Years
□Applicable ?Not Applicable
(3). Recognition of Profits and Losses from Financing Leases as Manufacturer or Dealer
□Applicable ?Not Applicable
Other Explanations:
None
83. Data Resources
□Applicable ?Not Applicable
84. Others
□Applicable ?Not Applicable
VIII. Research and Development Expenses
1. Presented by Expense Nature
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Employee Expenses 56590938.69 54114060.23
Material Consumption 269330003.99 266560146.06
Depreciation Expenses 23819514.99 21102386.05
Other Expenses 39411035.59 41126672.71
Total 389151493.26 382903265.05
Including: Expensed Research and
389151493.26382903265.05
Development Expenditures
Capitalized Development
261 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Costs
Other Explanations:
None
2. Development Expenditures on Research and Development Projects Qualifying for
Capitalization
□Applicable ?Not Applicable
Significant Capitalized Research and Development Projects
□Applicable ?Not Applicable
Development Expenditure Impairment Reserves
□Applicable ?Not Applicable
Other Explanations:
None
3. Significant Outsourced Research Projects
□Applicable ?Not Applicable
IX. Changes in Consolidation Scope
1. Enterprise Merger Not Under the Same Control
?Applicable □ Not Applicable
(1). Business Combinations Not Under Common Control Occurred in the Current Period
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Percenta Basis
Date of Net Profit
ge of Metho for Revenue from Cash Flows
Acquisitio from
Name of Cost of Equity d of Acquisitio Determi Acquisition from
n of Acquisition
Acquiree Acquisition Interest Acqui n Date ning Date to Period Acquisition Date
Equity Date to Period
Acquire sition Acquisit End to Period End
Interest End
d (%) ion Date
Food Amino
Acids
Pharmaceutical
Amino Acids
and Human Cash Obtaine
Milk 2025/7/1 764448539.03 100 Acqui 2025/7/1 d 307541742.98 30171537.83 -64524001.75
Oligosaccharide sition Control
s (HMO)
Businesses of
Kyowa Hakko
Bio
Other Explanations:
On November 22 2024 the Company and its wholly-owned subsidiary PLUM
BIOTECHNOLOGY GROUP PTE. LTD. (hereinafter referred to as the “Singapore Company”) entered
into a Share and Asset Purchase Agreement with Kyowa Hakko Bio Co. Ltd. (hereinafter referred to as
262 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
the “Kyowa Hakko Bio”) a wholly-owned subsidiary of Kirin Holdings Company Limited (Kirin
Holdings Tokyo Stock Exchange-listed company stock code: 2503.T). Under the agreement the
Singapore Company or a special purpose entity newly established under the Singapore Company plans
to acquire for a cash consideration of JPY 10.5 billion the food amino acids pharmaceutical amino
acids and human milk oligosaccharides (HMO) businesses under Kyowa Hakko Bio Co. Ltd. The
scope of this transaction specifically includes the following companies and business asset packages:
Name Country/Region Abbreviation
Plumino PrecisionFermentation USA Inc. (Formerly: BIOKYOWA INC.) United States UP
Shanghai Primeno Amino Acids Co. Ltd. (Formerly: Shanghai Kyowa Amino Acids
Shanghai SP
Co. Ltd.)
Plumino Precision Fermentation(Thailand) Co. Ltd. (Formerly: Thai Kyowa
Thailand TP
Biotechnologies Co.Ltd. )
Plumino BiotechnologySingapore Pte.Ltd. (Formerly: Kyowa Hakko Bio Singapore
Singapore PSG
Pte.Ltd. )
Plumino PrecisionFermentation EuropeGmbH (Formerly : Kyowa Hakko
Germany PEU
EuropeGmbh)
Primeno Biotechnology (Guangdong) Co. Ltd. (Formerly: Kyowa Fermentation
Guangzhou PGD
(Guangdong) Pharmaceutical Co. Ltd.)
Plumino Precision Fermentation Japan Co. Ltd. Japan PJP
Plumino Precision Fermentation US HoldingsInc. United States PUS
Prior to this transaction the above-mentioned companies were directly held by Kyowa Hakko Bio
Co. Ltd. (excluding PUS). Following completion of the transaction 100% equity interest in the
above-mentioned companies is held by Plumino Precision Fermentation Holdings Pte. Ltd. a
wholly-owned subsidiary of the Company.
(2). Cost of Business Combination and Goodwill
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Food Amino Acids
Pharmaceutical Amino Acids
and Human Milk
Cost of the Business Combination
Oligosaccharides (HMO)
Businesses of Kyowa Hakko
Bio
--Cash 764448539.03
-- Fair Value of Non-Cash Assets
-- Fair Value of Liabilities Issued or Assumed
-- Fair Value of Equity Instruments Issued
-- Fair Value of Contingent Consideration
-- Fair Value of Previously Held Equity Interest as at the Acquisition Date
--Others
Total Cost of the Business Combination 764448539.03
Less: Fair Value of Identifiable Net Assets Acquired 1595889554.08
263 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Goodwill / Excess of Fair Value of Identifiable Net Assets Acquired Over Cost of the
-831441015.05
Business Combination
Determination method of fair value of consideration:
□Applicable ?Not Applicable
Performance commitment fulfillment:
□Applicable ?Not Applicable
Main reasons for significant goodwill:
□Applicable ?Not Applicable
Other Explanations:
In the acquisition of the food amino acids pharmaceutical amino acids and human milk
oligosaccharides (HMO) businesses from Kyowa Hakko Bio Co. Ltd. the excess of the fair value of the
identifiable net assets over the consideration transferred is recognised as a gain on bargain purchase in
the consolidated financial statements.
(3). Identifiable assets and liabilities of the acquiree as at the acquisition date.
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Food Amino Acids Pharmaceutical Amino Acids and Human Milk Oligosaccharides
(HMO) Businesses of Kyowa Hakko Bio
Acquisition-Date Fair Value Book Value as at the Acquisition Date
Assets:
Monetary Funds 613878080.87 613878080.87
Notes Receivable 4040000.00 4040000.00
Accounts Receivable 195017187.78 195017187.78
Receivables Financing 2395000.00 2395000.00
Prepaid accounts 4285911.13 4285911.13
Other Receivables 12868207.94 12868207.94
Inventories 345901470.01 345901470.01
Other Current Assets 26096998.33 26096998.33
Fixed Assets 333078533.82 304329853.88
Construction in Progress 4176234.47 4176234.47
Right-of-Use Assets 1344223.51 1344223.51
Intangible Assets 229781459.28 146386964.56
Long-term prepaid expenses 2927431.01 2927431.01
Other Non-Current Assets 3238246.16 3238246.16
Liabilities:
Accounts Payable 38368929.55 38368929.55
Contract liabilities 1039698.26 1039698.26
Employee benefits payable 30387332.07 30387332.07
Taxes payable 22500765.67 22500765.67
Other payables 18691335.46 18691335.46
264 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Non-current liabilities due
1182567.001182567.00
within one year
Other current liabilities 62923964.33 62923964.33
Lease Liabilities 249841.37 249841.37
Long-term employee benefits
6147827.116147827.11
payable
Estimated liabilities 1063836.35 1063836.35
Deferred income 583333.06 583333.06
Net Assets 1595889554.08 1483746379.42
Less: Minority Shareholders’
Equity
Net Assets Acquired 1595889554.08 1483746379.42
Valuation methods used to determine the fair value of identifiable assets and liabilities:
Fair value is determined based on quoted market prices transaction prices of identical or similar
assets in comparable locations adjusted by relevant factors or determined based on intended use.Disposal costs refer to costs directly attributable to the disposal of the assets.Contingent liabilities of the acquiree assumed in a business combination:
None
Other Explanations:
None
(4). Gains or losses arising from remeasurement of previously held equity interests at fair value
before the acquisition date
Whether control is obtained through a step acquisition achieved in multiple transactions during the
reporting period:
□Applicable ?Not Applicable
(5). Explanations on situations where the fair value of the consideration transferred or the
identifiable assets and liabilities of the acquiree cannot be reasonably determined at the
acquisition date or at the end of the reporting period:
□Applicable ?Not Applicable
(6). Other Explanations
□Applicable ?Not Applicable
2. Enterprise Merger Under the Same Control
□Applicable ?Not Applicable
3. Reverse Acquisitions
□Applicable ?Not Applicable
4. Disposal of Subsidiaries
Whether there are transactions or matters resulting in loss of control over subsidiaries during the current
period
□Applicable ?Not Applicable
265 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Other Explanations:
□Applicable ?Not Applicable
Whether there are instances in which the disposal of investment in subsidiaries is conducted through
multiple transactions and results in loss of control during the current period
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
5. Changes in Consolidation Scope Due to Other Reasons
Explanation of changes in consolidation scope due to other reasons (such as establishment of new
subsidiaries and liquidation of subsidiaries) and related circumstances:
?Applicable □ Not Applicable
Name Reason for Changes
Plumino Precision Fermentation HoldingsPte. Ltd. New Establishment
Plumino Precision Fermentation US HoldingsInc. New Establishment
Plumino USA lnc. New Establishment
6. Others
□Applicable ?Not Applicable
266 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
X. Equity in Other Entities
1. Equity in Subsidiaries
(1). Composition of Business Group
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Stock
Main Place of Ownership
Names of Registered Business
Operating Currency Registrat Ratio (%) Acquisition Method
Subsidiaries Capital Nature
Location ion Dire Indirec
ct t
Tongliao Manufacturi Investment or
Tongliao 1800000000 CNY Tongliao 100
Meihua ng Establishment
Tongliao Manufacturi Merger Not Under
Tongliao 233000000 CNY Tongliao 100
Jianlong ng the Same Control
Xinjiang Manufacturi Investment or
Wujiaqu 2500000000 CNY Wujiaqu 100
Meihua ng Establishment
Xinjiang Manufacturi Merger Not Under
Wujiaqu 260000000 CNY Wujiaqu 100
Agriculture ng the Same Control
Wujiaqu Manufacturi Investment or
Wujiaqu 160000000 CNY Wujiaqu 100
Jianlong ng Establishment
Technologic
Langfang R Langfan al Investment or
Langfang 38000000 CNY 100
& D g Developmen Establishment
t
Technologic
Shanghai R Shangha al Investment or
Shanghai 31000000 CNY 100
& D i Developmen Establishment
t
Langfang Langfan Warehousi Investment or
Langfang 25000000 CNY 100
BAIAN g ng Establishment
Langfang Langfan Manufacturi Investment or
Langfang 250000000 CNY 100
Seasoning g ng Establishment
Tongliao Manufacturi Investment or
Tongliao 5000000 CNY Tongliao 100
Seasoning ng Establishment
Hong Kong Hong Investment or
Hong Kong 6277900 CNY Trading 100
Meihua Kong Establishment
Lhasa Investmen Investment or
Lhasa 800000000 CNY Lhasa 100
Meihua t Establishment
Baichen Manufacturi Investment or
Jilin Meihua Baicheng 2000000000 CNY 100
g ng Establishment
Hengqin Investmen Investment or
Hengqin 432315000 CNY Zhuhai 100
Meihua t Establishment
Hong Kong Hong Hong Investmen Investment or
Hong Kong 490463215 100
Holding Kong Kong t Establishment
267 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Dollar
Cayman Investmen Investment or
Cayman 5000000 US Dollar Cayman 100
Company t Establishment
Singapore Singapore Singapor Investment or
Singapore 10000000 Trading 100
Company Dollar e Establishment
Singapore Singapor Investmen Investment or
SPV Singapore 1.00 100
Dollar e t Establishment
United United Investmen Investment or
PUS 5000 US Dollar 100
States States t Establishment
United United Investment or
PUSA 5000 US Dollar Trading 100
States States Establishment
Shangha Manufacturi Merger Not Under
SP Shanghai 88900000 US Dollar 100
i ng the Same Control
Manufacturi Merger Not Under
TP Thailand 7150000000 Thai Baht Thailand 100
ng the Same Control
United United Manufacturi Merger Not Under
UP 20000000 US Dollar 100
States States ng the Same Control
Japanese Merger Not Under
PJP Japan 5000000 Japan Trading 100
Yen the Same Control
Singapor Merger Not Under
PSG Singapore 4000000 US Dollar Trading 100
e the Same Control
German Merger Not Under
PEU Germany 1030000 Euro Trading 100
y the Same Control
Guanagz Merger Not Under
PGD Guanagzhou 3361280 CNY Trading 100
hou the Same Control
Explanation of the Difference between Ownership Ratio and Voting Rights Ratio in Subsidiaries:
None
Basis for Controlling Invested Units with Half or Less than Half of Voting Rights and Not Controlling
Invested Units with More than Half of Voting Rights:
None
Basis for Controlling Significant Structured Entities Included in the Consolidation Scope:
None
Basis for Determining Whether the Company is an Agent or Principal:
None
Other Explanations:
None
(2). Significant Non-Wholly-Owned Subsidiaries
□Applicable ?Not Applicable
(3). Main Financial Information of Significant Non-Wholly-Owned Subsidiaries
□Applicable ?Not Applicable
(4). Significant Restrictions on the Use of Business Group’s Assets and Settlement of Business
Group’s Debts
□Applicable ?Not Applicable
268 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(5). Financial Support or Other Support Provided for Structured Entities Included in the Scope of
Consolidated Financial Statements
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
2. Transactions where Owners’ Equity Shares in Subsidiaries Change but Control is Maintained
□Applicable ?Not Applicable
3. Equity in Joint Ventures or Associates
?Applicable □ Not Applicable
(1). Significant Joint Ventures or Associates
?Applicable □ Not Applicable
Stock Ownership Ratio Accounting
Names of Joint Main (%) Treatment Methods
Place of Business
Ventures or Operating for Investment in
Registration Nature
Associates Location Direct Indirect Joint Venture or
Associates
Tongliao Desheng
Tongliao Tongliao Manufacturing 49 -- Equity Method
Bio-Tech Co. Ltd.Explanation of the Difference between Ownership Ratio and Voting Rights Ratio in Joint Ventures or
Associates:
None
Basis for Holding Less than 20% Voting Rights but Having Significant Influence or Holding 20% or More
Voting Rights but Not Having Significant Influence:
None
(2). Main Financial Information of Significant Joint Ventures
□Applicable ?Not Applicable
(3). Main Financial Information of Significant Associates
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance/ Amount Beginning Balance/ Amount
Incurred During the Current Incurred During the Previous
Period Period
Tongliao Desheng Bio-Tech Co. Tongliao Desheng Bio-Tech
Ltd. Co. Ltd.Current Assets 11941216.25 27738137.26
Non-Current Assets 16563759.25 18485239.24
Total Assets 28504975.50 46223376.50
Current Liabilities 17145692.57 26873303.27
Non-Current Liabilities
269 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Total Liabilities 17145692.57 26873303.27
Minority Shareholders’ Equity
Shareholders’ Equity Attributable to the Parent
11359282.9319350073.23
Company
Net Asset Share Calculated by Stock Ownership
5566048.649481535.88
Ratio
Adjustments
--Goodwill
--Unrealized Profits on Internal Transactions
--Others
Book Value of Equity Investments in Associates 4757925.21 6874939.88
Fair Value of Equity Investments in Associates with
Public Quotation
Operating Revenues 95413568.31 101724233.18
Net Profits -3274789.19 -4255571.27
Net Profits from Discontinued Operations
Other Comprehensive Income
Total Comprehensive Income -3274789.19 -4255571.27
Dividends Received from Associates during the
--2395866.49
Current Year
Other Explanations:
None
(4). Consolidated Financial Information of Insignificant Joint Ventures and Associates
□Applicable ?Not Applicable
(5). Explanation of Significant Restrictions on the Ability of Joint Ventures or Associates to Transfer
Funds to the Company
□Applicable ?Not Applicable
(6). Excessive Losses Incurred by Joint Ventures or Associates
□Applicable ?Not Applicable
(7). Unrecognized Commitments Related to Investments in Joint Ventures
□Applicable ?Not Applicable
(8). Contingent Liabilities Related to Investments in Joint Ventures or Associates
□Applicable ?Not Applicable
4. Significant Joint Operations
□Applicable ?Not Applicable
270 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
5. Equity in Structured Entities Not Included in the Scope of Consolidated Financial Statements
Explanation of Structured Entities Not Included in the Scope of Consolidated Financial Statements:
□Applicable ?Not Applicable
6. Others
□Applicable ?Not Applicable
XI. Government Grants
1. Government Grants Recognized as Receivables at the End of the Reporting Period
□Applicable ?Not Applicable
Reasons for Not Receiving Expected Amounts of Government Grants at the Anticipated Timing
□Applicable ?Not Applicable
2. Items of Liabilities Related to Government Grants
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount
Amount Other
Newly Recorded in
Financia Transferred Change
Added Non-operatin
l Beginning to Other s for Ending Asset/Income-relat
Grants for g Revenue
Stateme Balance Income for the Balance ed
the Current for the
nt Items the Current Current
Period Current
Period Period
Period
Deferred 381020645. 32833333.0 46228990.1 367624988.Asset-related
Income 51 6 9 38
381020645.32833333.046228990.1367624988.
Total /
516938
3. Government Grants Recorded in the Profit or Loss for the Current Period
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Types
Period Period
Asset-related 46228990.19 44077769.22
Income-related 181857339.01 161887928.60
Total 228086329.20 205965697.82
Other Explanations:
1. Government Grants Recorded in the Profit or Loss for the Current Period
Income Statement Presentation Items 2025 2024 Asset/Income-related
Other Income 46228990.19 44077769.22 Asset-related
Other Income 181011850.37 159804639.78 Income-related
Financial Expenses (Government Interest
Subsidies) 845488.64 2083288.82 Income-related
Total 228086329.20 205965697.82 —
2. Government Grants Offset Against the Book Value of Related Assets
Income Statement Presentation Items 2025 2024 Asset/Income-related
Construction in Progress (Government Interest 27777.78 Asset-related
271 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Subsidies)
Total 27777.78 —
XII. Risks Related to Financial Instruments
1. Risks of Financial Instruments
?Applicable □ Not Applicable
The Company’s risks related to financial instruments arise from various financial assets and financial
liabilities recognised in the course of its operations including credit risk liquidity risk and market risk.The formulation of objectives and policies for managing these risks related to financial instruments is
the responsibility of the Company’s management. The operating management team is responsible for
day-to-day risk management through functional departments. The Company’s internal audit department
conducts ongoing supervision over the implementation of risk management policies and procedures and
reports relevant findings to the Company’s Audit Committee in a timely manner.The overall objective of the Company’s risk management is to establish risk management policies that
minimise risks related to financial instruments as far as possible without unduly affecting the Company’s
competitiveness and responsiveness.
1.Credit Risk
Credit risk refers to the risk that one party to a financial instrument will fail to discharge its obligations
thereby causing financial loss to the other party. The Company’s credit risk mainly arises from cash and
cash equivalents notes receivable accounts receivable financing receivables other receivables contract
assets and long-term receivables. The credit risk of these financial assets originates from counterparty
default and the maximum exposure to credit risk is equal to their book amounts.The Company’s cash and cash equivalents are mainly deposited with commercial banks and other
financial institutions. The Company considers that these commercial banks have relatively high credit
standing and sound financial conditions and therefore the associated credit risk is low.For notes receivable accounts receivable financing receivables other receivables contract assets and
long-term receivables the Company has established relevant policies to control credit risk exposure. The
Company assesses customers’ creditworthiness based on their financial condition the availability of
third-party guarantees credit history and other factors such as current market conditions and sets
appropriate credit terms accordingly. The Company regularly monitors customers’ credit records. For
customers with poor credit history the Company adopts measures such as issuing written reminders
shortening credit terms or cancelling credit terms to ensure that the overall credit risk remains within a
controllable range.
(1) Criteria for Significant Increase in Credit Risk
At each balance sheet date the Company assesses whether the credit risk of the relevant financial
instruments has increased significantly since initial recognition. In determining whether a significant
increase in credit risk has occurred since initial recognition the Company considers reasonable and
supportable information that is available without undue cost or effort including qualitative and quantitative
272 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
analysis based on the Company’s historical data external credit risk ratings and forward-looking
information. The Company determines changes in the risk of default over the expected life of a financial
instrument by comparing the risk of default at the reporting date with that at initial recognition on an
individual financial instrument basis or a portfolio basis with similar credit risk characteristics.The Company considers that the credit risk of a financial instrument has increased significantly when
one or more of the following quantitative or qualitative criteria are triggered: quantitative criteria mainly
include a significant increase in the probability of default over the remaining lifetime at the reporting date
compared with that at initial recognition exceeding a certain threshold; qualitative criteria include
significant adverse changes in the debtor’s operating or financial conditions inclusion on a watchlist of
customers etc.
(2) Definition of Credit-Impaired Financial Assets
To determine whether a financial asset is credit-impaired the Company applies criteria consistent with
its internal credit risk management objectives for the relevant financial instruments and considers both
quantitative and qualitative indicators.In assessing whether a debtor is credit-impaired the Company mainly considers the following factors:
significant financial difficulty of the issuer or debtor; breach of contract by the debtor such as default or
overdue payment of interest or principal; concessions granted to the debtor for economic or contractual
reasons related to the debtor’s financial difficulty that would not otherwise be considered; high probability
of bankruptcy or other financial restructuring of the debtor; disappearance of an active market for the
financial asset due to financial difficulties of the issuer or debtor; purchase or origination of a financial
asset at a deep discount that reflects incurred credit losses.Credit impairment of financial assets may result from the combined effect of multiple events and may
not necessarily be attributable to a single identifiable event.
(3) Parameters for Measurement of Expected Credit Losses
Based on whether there has been a significant increase in credit risk and whether credit impairment
has occurred the Company measures loss allowances at an amount equal to 12-month expected credit
losses or lifetime expected credit losses for different assets. The key parameters used in measuring
expected credit losses include probability of default (PD) loss given default (LGD) and exposure at default
(EAD). The Company incorporates both quantitative analysis of historical statistical data (such as
counterparty credit ratings types of guarantees and collateral repayment methods etc.) and
forward-looking information to develop PD LGD and EAD models.The relevant definitions are as follows:
Probability of default refers to the likelihood that a debtor will be unable to fulfil its repayment
obligations over the next 12 months or over the remaining lifetime of the instrument.Loss given default refers to the Company’s expectation of the extent of loss arising from exposure at
default. LGD varies depending on the type of counterparty the method and priority of recovery and the
nature of collateral. It represents the percentage of exposure that will be lost in the event of default
calculated on a 12-month basis or over the remaining lifetime.
273 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Exposure at default refers to the amount that the Company expects to be repaid in the event of default
within the next 12 months or over the remaining lifetime of the instrument. Forward-looking information is
incorporated in both the assessment of significant increases in credit risk and the calculation of expected
credit losses. The Company identifies key economic indicators affecting credit risk and expected credit
losses for each business type through historical data analysis.The Company’s maximum exposure to credit risk is the book amount of each financial asset presented
in the balance sheet. The Company has not provided any other guarantees that would expose it to additional
credit risk.For the Company’s accounts receivable and contract assets the top five customers accounted for
48.09% (comparative period: 60.51%) of total accounts receivable. For other receivables the top five
debtors accounted for 86.95% (comparative period: 90.88%) of total other receivables.
2.Liquidity Risk
Liquidity risk refers to the risk that the Company will encounter a shortage of funds when it is unable
to meet its obligations settled by delivering cash or other financial assets. The Company centrally manages
cash across all its subsidiaries including short-term investment of surplus cash and arranging borrowings to
meet anticipated cash requirements. The Company’s policy is to regularly monitor both short-term and
long-term liquidity needs as well as compliance with borrowing covenants to ensure sufficient cash
reserves and readily realisable marketable securities are maintained.As at December 31 2025 the maturities of the Company’s financial liabilities are as follows:
December 31 2025
Items
Within one year 1-2 years 2-3 years Over 3 years
Short-term borrowings 1800136227.43
Notes payable 1777053969.91
Accounts payable 1735184321.70
Other payables 256349893.68
Long-term borrowings 280045900.02 756401933.35 707451933.27 454825357.21
Lease liabilities 1011449.31 825023.64 159469.07 28473.93
Long-term payables 10500000.00
Total 5849781762.05 757226956.99 707611402.34 465353831.14
(Continued)
December 31 2024
Items
Within one year 1-2 years 2-3 years Over 3 years
Short-term borrowings 1734832631.06
Derivative financial
297500.00
liabilities
Notes payable 1416217579.96
Accounts payable 1441533026.72
Other payables 448115137.98
Long-term borrowings 746288000.00 357299933.33 737699933.33 253094178.17
Lease liabilities 3538091.96 989287.27 807910.58 187943.00
Long-term payables 52520701.81 10500000.00
274 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
December 31 2024
Items
Within one year 1-2 years 2-3 years Over 3 years
Total 5843342669.49 358289220.60 738507843.91 263782121.17
275 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
3.Market Risk
(1) Exchange Risk
The Company’s foreign exchange risk mainly arises from foreign currency-denominated assets and liabilities held by the Company and its subsidiaries that are
not denominated in their respective functional currencies. The Company is exposed to exchange rate risk primarily in relation to recognised foreign currency assets
and liabilities and future foreign currency transactions (the principal currencies of such assets liabilities and transactions are USD). Except for subsidiaries
established in the Hong Kong Special Administrative Region of the People’s Republic of China and other overseas jurisdictions which conduct transactions and
settlements in USD THB JPY and EUR the Company’s other major operations are denominated and settled in RMB.* As at December 31 2025 the Company’s principal foreign currency exposure arising from foreign currency assets and liabilities is set out below (for
presentation purposes the exposure amounts are stated in RMB and translated at the spot exchange rates prevailing at the balance sheet date):
December 31 2025
US Dollar Euro Hong Kong Dollar British Pound Singapore Dollar Japanese Yen Australian Dollar
Forei
Items
Foreign Foreign Foreign gn Foreign Foreign Foreign
CNY CNY CNY CNY CNY CNY CNY
currency currency currency curre currency currency currency
ncy
Monetary Funds 70274067.47 493827298.77 2211985.26 18216804.07 6887.68 6221.09 34.20 322.66 93852.93 512305.45 513405.00 22997.77 1283.68 6019.46
Accounts Receivable 29213865.34 205242499.24 - - - - - - - - - -
Other Receivables 60000.00 421728.00 - - - - 12799.50 69864.38 - - - -
Other Current Assets - - - - - - 5659.83 30894.53 - - - -
Long-Term Receivables - - - - - - 42730.05 233244.15 - - - -
Accounts Payable 747613.38 5258240.29 - - - - - - - - - -
Other Payables 1196232.96 8408082.22 - - - - 187.50 1033.02 25263150.00 1131713.34 - -
Accrued Employee
--369666.00333889.72--126280.83689312.24----
Compensation
Lease Liabilities - - - - - - 124926.41 681913.56 - - - -
Non-Current Liabilities Due
------161766.77883020.09----
Within One Year
276 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(Continued)
December 31 2024
US Dollar Euro Hong Kong Dollar British Pound Singapore Dollar
Items
Foreign Foreign Foreign
Foreign currency CNY CNY CNY CNY Foreign currency CNY
currency currency currency
Monetary Funds 56872351.39 408821210.75 979928.83 7374650.39 687.31 636.47 34.20 310.42 29800.00 158582.86
Accounts Receivable 61724251.75 443698611.28 60.00 451.54
Other Receivables 75898.40 545588.06 6363.00 33861.17
Long-Term Receivables 42108.00 224080.76
Accounts Payable 1622230.00 11661238.13 26962.67 143479.15
Other Payables 16867.79 121252.42
Long-Term Payables 7421322.85 52520701.81
Accrued Employee Compensation 11000.00 58537.30
Lease Liabilities 286694.05 1525658.60
Non-Current Liabilities Due Within
156443.79832531.60
One Year
The Company continuously monitors the scale of its foreign currency transactions and foreign currency assets and liabilities in order to minimise exposure to
foreign exchange risk. To this end the Company may enter into forward foreign exchange contracts or currency swap agreements to hedge against foreign exchange
risk.
(2) Interest Rate Risk
The Company’s interest rate risk mainly arises from interest-bearing liabilities such as short-term borrowings and long-term bank borrowings. Financial
liabilities with floating interest rates expose the Company to cash flow interest rate risk while those with fixed interest rates expose the Company to fair value
interest rate risk. The Company determines the appropriate proportion of fixed-rate and floating-rate arrangements based on prevailing market conditions.The Group’s head office finance department continuously monitors the overall interest rate environment. An increase in interest rates would raise the cost of
new interest-bearing borrowings and the interest expenses on the Company’s outstanding floating-rate debt thereby potentially exerting a material adverse impact
on the Company’s financial performance. Management makes timely adjustments in response to the latest market conditions.
277 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
2. Hedging
(1). The Company conduct hedging transactions for risk management
□Applicable ?Not Applicable
Other Explanations
□Applicable ?Not Applicable
(2). The Company conducts eligible hedging transactions and applies hedging accounting
□Applicable ?Not Applicable
Other Explanations
□Applicable ?Not Applicable
(3). The Company conducts eligible hedging transactions for risk management and expects to
achieve risk management objectives but does not apply hedging accounting
□Applicable ?Not Applicable
Other Explanations
□Applicable ?Not Applicable
3. Transfer of Financial Assets
(1). Classification of Transfer Methods
□Applicable ?Not Applicable
(2). Financial Assets Derecognized Due to Transfer
□Applicable ?Not Applicable
(3). Financial Assets Continuously Involved in Transfer
□Applicable ?Not Applicable
Other Explanations
□Applicable ?Not Applicable
XIII. Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities Measured at Fair Value
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Fair Value
Level
2 Fair
Level 1 Fair
Items Value Level 3 Fair Value
Value Total
Measu Measurement
Measurement
remen
t
I. Continuous Fair Value Measurement
(I) Financial Assets Held for Trading 1142438716.70 1142438716.70
1. Financial Assets Measured at Fair Value with Changes
1142438716.701142438716.70
Recorded in the Profit or Loss for the Current Period
(1) Debt Instrument Investments
278 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(2) Equity Instrument Investments
(3) Derivative Financial Assets 2061300.00 2061300.00
Wealth Management Products 1140377416.70 1140377416.70
2. Financial Assets Designated as Measured at Fair Value
with Changes Recorded in the Profit or Loss for the Current
Period
(1) Debt Instrument Investments
(2) Equity Instrument Investments
(II) Other Debt Investments
(III) Other Equity Instrument Investments 144966810.00 157000000.00 301966810.00
(IV) Investment Properties
Leased Land Use Rights
Leased Buildings
Land Use Right Held for Transfer After Appreciation
(V) Biological Assets
Consumable Biological Assets
Productive Biological Assets
(VI) Receivables Financing 17978363.00 17978363.00
(VII) Other Non-Current Financial Assets 282005000.00 282005000.00
Total Amount of Assets Measured at Fair Value on a
144966810.001599422079.701744388889.70
Continuous Basis
(VI) Financial Liabilities Held for Trading
Financial Liabilities Measured at Fair Value with Changes
Recorded in the Profit or Loss for the Current Period
Including: Issued Bonds Held for Trading
Derivative Financial Liabilities
Others
2. Financial Liabilities Designated as Measured at Fair Value
with Changes Recorded in the Profit or Loss for the Current
Period
Total Amount of Liabilities Measured at Fair Value on a
Continuous Basis
II. Non-Continuous Fair Value Measurement
(I) Assets Held for Sale
Total Amount of Assets Measured at Fair Value on a
Non-Continuous Basis
Total Amount of Liabilities Measured at Fair Value on a
Non-Continuous Basis
2. Basis for Determining Market Prices for Continuous and Non-continuous Level 1 Fair Value
Measurement Items
?Applicable □ Not Applicable
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
279 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
3. Qualitative and Quantitative Information on Valuation Techniques and Significant
Parameters Adopted for Continuous and Non-continuous Level 2 Fair Value Measurement
Items
?Applicable □ Not Applicable
Level 2: Directly or indirectly observable inputs other than quoted prices included in Level 1 for
related assets or liabilities.The Company’s financial assets at fair value through profit or loss include bank wealth
management products and equity instrument investments. The Company determines their fair value
using specific valuation techniques.
4. Qualitative and Quantitative Information on Valuation Techniques and Significant
Parameters Adopted for Continuous and Non-continuous Level 3 Fair Value Measurement
Items
?Applicable □ Not Applicable
Level 3: Unobservable inputs for related assets or liabilities.Given their relatively short remaining maturities the book value of receivables financing
approximates their fair values. The face value is used as the basis for determining fair value.
5. Adjustment Information of Beginning and Ending Book Vales and Sensitivity Analysis of
Unobservable Parameters for Continuous Level 3 Fair Value Measurement Items
□Applicable ?Not Applicable
6. Reasons for Transition between Various Levels Occurring during the Current Period and
Policies for Determining Transitioning Timing for Continuous Fair Value Measurement Items
□Applicable ?Not Applicable
7. Changes in Valuation Techniques Occurring During the Current Period and Reasons for Such
Changes
□Applicable ?Not Applicable
8. Status of Fair Value of Financial Assets and Financial Liabilities Not Measured at Fair Value
?Applicable □ Not Applicable
The Company’s financial assets and financial liabilities measured at amortized cost mainly include:
cash and cash equivalents notes receivable accounts receivable other receivables debt investments
short-term borrowings notes payable accounts payable and other payables.The book values of the
above financial assets and liabilities not measured at fair value differ only slightly from their fair values.
9. Others
□Applicable ?Not Applicable
280 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
XIV. Related Parties and Related Transactions
1. Information of the Company’s Parent Company
?Applicable □ Not Applicable
Unit: 10000 yuan Currency: RMB
Parent Company’s Parent Company’s
Name of Parent Place of
Business Nature Registered Stock Ownership in Voting Rights in the
Company Registration
the Company (%) Company (%)
Meng Qingshan 30.46
Explanation of the Status of the Company’s Parent Company
None
The Company’s ultimate controlling party is Mr. Meng Qingshan. Ms. Wang Aijun Mr. He Jun Ms.Wang Ailing Mr. Wang Aimin and Ms. Wang Aidi are his parties acting in concert.Other Explanations:
None
2. Information of the Company’s Subsidiaries
Refer to the notes for the details of the Company’s Subsidiaries
?Applicable □ Not Applicable
Refer to 1 in Section IX for equity in subsidiaries
3. Information of the Company’s Joint Ventures and Associates
Refer to the notes for the details of the Company’s significant joint ventures or associates
□Applicable ?Not Applicable
Other joint ventures or associates with related transactions with the Company during the current period
or with balances formed from related transaction with the Company during the previous period are as
follows:
?Applicable □ Not Applicable
Names of Joint Ventures or Associates Relationship with the Company
Tongliao Desheng Bio-tech Co. Ltd. Associate
Other Explanations:
□Applicable ?Not Applicable
4. Information of Other Related Parties
?Applicable □ Not Applicable
Names of Other Related Parties Relationship with the Company
Hu Jijun Shareholder of the Company
Liang Yubo The Shareholders and Senior Executive of the company.Wang Aijun The Shareholders and Senior Executive of the company.He Jun The Shareholders and Senior Executive of the company.Liu Xinghua Director of the Company
Lu Chuang Director of the Company
Chang Libin Supervisor of the Company
Liu Xiaojing Supervisor of the Company
Liu Qiang Supervisor of the Company
Liu Xianfang Senior Executive of the Company
Wang Lihong Senior Executive of the Company
281 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Wang You Senior Executive of the Company
Beitun Zefeng Agricultural Development Co. Ltd. Former associates of the Company*1
The Legal Representative of the company is a direct relative of the
Tibet Meihua Charity Foundation
shareholder of the Company
Other Explanations:
*1 The equity interest in this company held by the Company’s subsidiary Xinjiang Agriculture was
transferred to an external party in August 2024.Note: The above table only lists related parties with which the Company had related-party
transactions and dealings during the reporting period.
5. Information of Related Transactions
(1). Related Transactions for Purchasing and Selling Goods/Providing and Accepting Labor
Services
Table of Purchasing Goods/Accepting Labor Services
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Exceeding Amount
Approved
Content of Incurred Transaction Incurred
Transaction
Related Party Related during the Limit or Not during the
Amount (if
Transaction Current (if Previous
applicable)
Period applicable) Period
Beitun Zefeng Agricultural Raw
24187662.88
Development Co. Ltd. Materials
Table of Selling Goods/Providing Labor Services
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred Amount Incurred
Content of Related
Related Party during the Current during the Previous
Transaction
Period Period
Tongliao Desheng Bio-tech Co. Ltd. Goods 75113020.43 75539223.56
Tongliao Desheng Bio-tech Co. Ltd. Services and Others 994582.93 26489.59
Total 76107603.36 75565713.15
Explanation of Related Transactions for Purchasing and Selling Goods / Providing and Accepting
Services
□Applicable ?Not Applicable
(2). Information of Related Delegated Management/Contracting and Delegating Management
/Outsourcing
Table of the Delegated Management/Contracting by the Company:
□Applicable ?Not Applicable
Explanation of Related Delegated Management/Contracting
□Applicable ?Not Applicable
Table of Delegating Management/Outsourcing by the Company
□Applicable ?Not Applicable
282 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Explanation of Related Management/Outsourcing
□Applicable ?Not Applicable
(3). Information of Related Leases
The Company as the Lessor:
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Types of Leased Lease Revenue Recognized Lease Revenue Recognized
Name of Lessee
Asset during the Current Period during the Previous Period
Tongliao Desheng Bio-tech Co.Property 1505861.10 2739061.65
Ltd.The Company as the Lessee:
□Applicable ?Not Applicable
Explanation of Related Leases
□Applicable
?Not Applicable
283 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(4). Information of Related Guarantee
The Company as the Guarantor
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Whether the
Guarantee Has
Guaranteed Party Guaranteed Amount Start Date of Guarantee Expiry Date of Guarantee
Been Fully
Fulfilled
Tongliao Meihua 80000000.00 2024/1/31 2025/1/31 Yes
Tongliao Meihua 40000000.00 2024/3/25 2025/3/21 Yes
Tongliao Meihua 60000000.00 2024/3/27 2025/3/21 Yes
Tongliao Meihua 20000000.00 2024/3/29 2025/3/21 Yes
Tongliao Meihua 80000000.00 2025/1/21 2025/7/21 Yes
Tongliao Meihua 30000000.00 2025/2/10 2025/7/21 Yes
Tongliao Meihua 50000000.00 2025/2/17 2025/7/21 Yes
Tongliao Meihua 40000000.00 2025/2/17 2025/7/21 Yes
Jilin Meihua 30000000.00 2024/4/10 2025/4/1 Yes
Jilin Meihua 40000000.00 2024/4/15 2025/4/1 Yes
Jilin Meihua 25000000.00 2024/4/18 2025/4/1 Yes
Tongliao Meihua 97333400.00 2023/5/22 2038/5/8 No
Tongliao Meihua 2666600.00 2023/5/22 2038/5/8 Yes
Tongliao Meihua 18785307.76 2024/6/6 2038/5/8 No
Tongliao Meihua 514692.24 2024/6/6 2038/5/8 Yes
Tongliao Meihua 9733320.08 2024/6/13 2038/5/8 No
Tongliao Meihua 266679.92 2024/6/13 2038/5/8 Yes
Tongliao Meihua 5839992.04 2024/6/19 2038/5/8 No
Tongliao Meihua 160007.96 2024/6/19 2038/5/8 Yes
Tongliao Meihua 14599980.12 2024/6/26 2038/5/8 No
Tongliao Meihua 400019.88 2024/6/26 2038/5/8 Yes
Tongliao Meihua 44500000.00 2024/10/21 2027/10/21 No
Tongliao Meihua 5500000.00 2024/10/21 2027/10/21 Yes
Tongliao Meihua 53400000.00 2024/10/21 2027/10/21 No
Tongliao Meihua 6600000.00 2024/10/21 2027/10/21 Yes
Tongliao Meihua 44500000.00 2024/10/24 2027/10/21 No
Tongliao Meihua 5500000.00 2024/10/24 2027/10/21 Yes
Tongliao Meihua 35600000.00 2024/10/24 2027/10/21 No
Tongliao Meihua 4400000.00 2024/10/24 2027/10/21 Yes
Tongliao Meihua 35600000.00 2024/11/14 2027/10/21 No
Tongliao Meihua 4400000.00 2024/11/14 2027/10/21 Yes
Tongliao Meihua 35600000.00 2024/11/18 2027/10/21 No
Tongliao Meihua 4400000.00 2024/11/18 2027/10/21 Yes
Tongliao Meihua 17800000.00 2024/11/20 2027/10/21 No
Tongliao Meihua 2200000.00 2024/11/20 2027/10/21 Yes
Tongliao Meihua 145708000.00 2025/5/20 2038/5/8 No
284 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Tongliao Meihua 3992000.00 2025/5/20 2038/5/8 Yes
Jilin Meihua 103000000.00 2022/6/28 2025/4/17 Yes
Jilin Meihua 29000000.00 2023/9/22 2025/5/7 Yes
Xinjiang Meihua 97000000.00 2024/7/25 2027/7/25 No
Xinjiang Meihua 2000000.00 2024/7/25 2027/7/25 Yes
Xinjiang Meihua 49000000.00 2024/8/21 2025/9/19 Yes
Total 1375000000.00
The Company as the Guaranteed Party
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Whether the
Guarantee
Start Date of
Guarantor Guaranteed Amount Expiry Date of Guarantee Has Been
Guarantee
Fully
Fulfilled
Tongliao Meihua Xinjiang Yes
200000000.002024/2/232025/2/23
Meihua
Tongliao Meihua Xinjiang Yes
100000000.002024/6/52025/6/5
Meihua
Tongliao Meihua Xinjiang Yes
150000000.002024/9/262025/9/26
Meihua
Tongliao Meihua Xinjiang Yes
100000000.002024/11/112025/11/11
Meihua
Tongliao Meihua Xinjiang Yes
100000000.002024/11/262025/11/26
Meihua
Tongliao Meihua Xinjiang Yes
46860000.002022/6/132025/3/5
Meihua
Tongliao Meihua Xinjiang
175000000.00 2023/3/31 2026/3/31 No
Meihua
Tongliao Meihua Xinjiang
2000000.00 2023/3/31 2026/3/31 Yes
Meihua
Tongliao Meihua Xinjiang
35000000.00 2023/4/23 2026/3/31 No
Meihua
Tongliao Meihua Xinjiang
2000000.00 2023/4/23 2026/3/31 Yes
Meihua
Tongliao Meihua Xinjiang
27000000.00 2024/6/11 2027/6/11 No
Meihua
Tongliao Meihua Xinjiang Yes
2000000.002024/6/112027/6/11
Meihua
Tongliao Meihua 112000000.00 2022/11/17 2025/4/7 Yes
Total 1051860000.00
Explanation of Related Guarantees
?Applicable □ Not Applicable
285 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Xinjiang Meihua as the guarantor
Whether the
Expiry Date of Guarantee Has
Guarantor Guaranteed Amount Start Date of Guarantee
Guarantee Been Fully
Fulfilled
Tongliao Meihua 75000000.00 2023/8/28 2038/6/20 No
Tongliao Meihua 25000000.00 2023/8/28 2038/6/20 Yes
Tongliao Meihua 41000000.00 2024/2/6 2027/2/4 No
Tongliao Meihua 5000000.00 2024/2/6 2027/2/4 Yes
Tongliao Meihua 14819832.28 2024/12/5 2039/11/27 No
Tongliao Meihua 4538021.20 2024/12/12 2039/11/27 No
Tongliao Meihua 3978347.92 2024/12/19 2039/11/27 No
Tongliao Meihua 2095843.43 2024/12/25 2039/11/27 No
Tongliao Meihua 20725937.66 2025/2/13 2039/11/27 No
Tongliao Meihua 5033161.44 2025/2/20 2039/11/27 No
Tongliao Meihua 2618621.00 2025/3/13 2039/11/27 No
Tongliao Meihua 17000000.00 2025/3/25 2039/11/27 No
Tongliao Meihua 4345889.20 2025/4/10 2039/11/27 No
Tongliao Meihua 924221.72 2025/7/4 2039/11/27 No
Tongliao Meihua 617779.60 2025/8/6 2039/11/27 No
Tongliao Meihua 1786020.00 2025/8/20 2039/11/27 No
Tongliao Meihua 6124927.36 2025/11/6 2039/11/27 No
Tongliao Meihua 39000000.00 2025/12/23 2039/11/27 No
Tongliao Meihua 14000000.00 2025/12/26 2039/11/27 No
Total 283608602.81
(5). Fund Borrowing by Related Parties
□Applicable ?Not Applicable
(6). Status of Transfer of Assets and Debt Restructuring by Related Parties
□Applicable ?Not Applicable
(7). Compensation of Key Management Personnel
?Applicable □ Not Applicable
Unit: 10000 yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Compensation of Key Management
20541937
Personnel
(8). Other Related Transactions
?Applicable □ Not Applicable
Related Donations
286 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Type of Related
Lessee Name Amount Incurred in 2025 Amount Incurred in 2024
Transaction
Tibet Meihua Charity
Donation 2500000.00 3500000.00
Foundation
Total 2500000.00 3500000.00
6. Status of Items Receivable and Payable Unsettled by Related Parties
(1). Items Receivable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Item Name Related Party Bad Debt
Book Balance Book Balance Bad Debt Reserves
Reserves
Tongliao
Dividends Desheng
1395866.491395866.49
Receivable Bio-tech Co.Ltd.Tongliao
Accounts Desheng
467401.2423370.06578234.4528911.72
Receivable Bio-tech Co.Ltd.
(2). Items Payable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Name Related Party Ending Book Balance Beginning Book Balance
Contract
Tongliao Desheng Bio-tech Co. Ltd. 1500884.96 1651503.01
Liabilities
Other Current
Tongliao Desheng Bio-tech Co. Ltd. 195115.04 214695.39
Liabilities
(3). Other Items
□Applicable ?Not Applicable
7. Commitments by Related Parties
□Applicable ?Not Applicable
8. Others
□Applicable ?Not Applicable
XV. Share-based Payments
1. Various Equity Instruments
(1). Details
□Applicable ?Not Applicable
287 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
(2). Stock options or other equity instruments outstanding at the end of the period
□Applicable ?Not Applicable
2. Status of Share-based Payments Settled by Equity
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Recipients of Equity-settled Share-based Payments
Methods for Determining the Fair Value of Equity Instruments on the
Closing Price on the Grant Date
Grant Date
Significant Parameters for Determining the Fair Value of Equity
Instruments on the Grant Date
Estimation Based on the Actual Quantity of
Basis for Determining the Quantity of Exercisable Equity Instruments
Restricted Stock Recipients
Reasons for Significant Differences between Estimates for the Current
Period and Previous Period
Accumulated Amount of Share-based Payments Settled by Equity
240893078.26
Recorded in Capital Reserves
Other Explanations:
None
3. Status of Share-based Payments Settled by Cash
□Applicable ?Not Applicable
4. Share-based Payment Expenses during the Current Period
□Applicable ?Not Applicable
5. Modification and Termination of Share-based Payment
□Applicable ?Not Applicable
6. Others
□Applicable ?Not Applicable
XVI. Commitments and Contingencies
1. Significant Commitments
?Applicable □ Not Applicable
Significant Commitments to External Parties as of the Balance Sheet Date and Their Nature and
Amounts
As of December 31 2025 the Company has no significant commitments that require disclosure but
have not been disclosed.
2. Contingencies
(1). Significant Contingencies as of the Balance Sheet Date
?Applicable □ Not Applicable
(1) Contingencies Arising from Pending Litigation or Arbitration and Their Financial Impact
Court of Amount in
Plaintiff Defendant Cause of Action Case Status
Acceptance Dispute
288 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Court of Amount in
Plaintiff Defendant Cause of Action Case Status
Acceptance Dispute
The plaintiff alleges that it is a legal entity duly
incorporated in Japan and has been engaged in the
The Company R&D and production of monosodium glutamate
and its (MSG) and other seasonings since its establishment. Case has
wholly-owned The plaintiff holds Invention Patent No. Higher beenAjinomoto subsidiaries 200580045189.5 titled “Microorganisms Producing People's 130 accepted byCo. Inc. Tongliao L-Glutamic Acid and Method for Producing Court of million the court(Japan) Meihua L-Glutamic Acid.” Guangdong yuan and has not
Xinjiang The plaintiff claims that the defendants Province yet gone to
Meihua and infringed its patent rights (patent No. trial
Jilin Meihua 200580045189.5) during the production and sale of
MSG products and has therefore filed a lawsuit with
the Higher People's Court of Guangdong Province.The Company
The plaintiff holds Invention Patent No.and its Case has
201480005332.7 titled “Method for Producingwholly-owned Higher beenL-Amino Acids.”
Ajinomoto subsidiaries People's 130 accepted by
The plaintiff claims that the defendants
Co. Inc. Tongliao Court of million the court
infringed its patent rights (patent No.(Japan) Meihua Guangdong yuan and has not
201480005332.7) during the production and sale of
Xinjiang Province yet gone to
MSG products and has therefore filed a lawsuit with
Meihua and trial
the Higher People's Court of Guangdong Province.Jilin Meihua
The Company and its wholly-owned subsidiaries Tongliao Meihua Xinjiang Meihua and Jilin
Meihua have been sued by third parties in relation to debt disputes with a claimed amount of 260
million yuan. As of the date of this report the case is still under trial.Except for the above contingencies the Company has no other significant contingencies that
require disclosure as of December 31 2025.
(2). Explanation should be also provided even if the Company has no significant contingencies
that require disclosure:
□Applicable ?Not Applicable
3. Others
□Applicable ?Not Applicable
XVII. Matters after the Balance Sheet Date
1. Significant Non-Adjusting Matters
□Applicable ?Not Applicable
2. Status of Profit Distribution
?Applicable □ Not Applicable
Unit: Hundreds of Millions Currency: RMB
289 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Profits or Dividends to be Distributed 12.00
Profits or Dividends Declared for Distribution
After Deliberation and Approval
3. Sales Returns
□Applicable ?Not Applicable
4. Explanation of Matters after Other Balance Sheet Dates
?Applicable □ Not Applicable
Except for the above subsequent event as of the date of approval of this financial report the
Company had no other material subsequent events that should have been disclosed but were not.XVIII. Other Significant Matters
1. Correction of Prior Accounting ErrorsFor further details please refer to the section titled “Analysis and Explanation of the Reasons for andImpact of Changes in Accounting Policies Accounting Estimates or Corrections of MaterialAccounting Errors” under “Significant Matters.”
2. Significant Debt Restructuring
□Applicable ?Not Applicable
3. Asset Swap
(1).Exchange of Non-monetary Assets
□Applicable ?Not Applicable
(2).Other Asset Swap
□Applicable ?Not Applicable
4. Pension Plans
□Applicable ?Not Applicable
5. Termination of Operations
□Applicable ?Not Applicable
6. Segment Information
(1).Determination Basis and Accounting Policies for Reporting Segments
□Applicable ?Not Applicable
(2).Financial Information of Reporting Segments
□Applicable ?Not Applicable
(3).If the company does not have reporting segments or cannot disclose the total assets and
liabilities of each reporting segment the reasons should be explained.□Applicable ?Not Applicable
(4).Other Explanations
□Applicable ?Not Applicable
290 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
7. Other Significant Transactions and Matters Affecting Decisions by Investors
□Applicable ?Not Applicable
8. Others
□Applicable ?Not Applicable
XIX. Notes to Main Items on the Parent Company’s Financial Statement
1. Accounts Receivable
(1).Disclosure by Aging
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending Book Balance Beginning Book Balance
Within 1 year (including 1 year) 252454693.41 170567658.48
Within 1 year 252454693.41 170567658.48
1 to 2 years
2 to 3 years
Over 3 years
3 to 4 years
4 to 5 years
Over 5 years
Total 252454693.41 170567658.48
(2).Classified Disclosure by Bad Debt Provision Methods
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Bad Debt Bad Debt
Book Balance Book Balance
Reserves Reserves
Prov Prov
Category Rati ision Book Value isionRatio Book Value
Amount o Amount Rati Amount Amount Rati
(%)
(%) o(% o(%
))
Provisions for Bad
Debt Reserves on an
Individual-item Basis
Including:
Provisions for Bad
Debt Reserves on a 252454693.41 100 12350111.11 4.89 240104582.30 170567658.48 100 8013876.71 4.70 162553781.77
Portfolio Basis:
Including:
Including: Related
Party Portfolio within
the Consolidation 5452471.29 2.16 5452471.29 10290124.30 6.03 10290124.30
Scope
Aging Analysis
Portfolio 247002222.12 97.84 12350111.11 5.00 234652111.01 160277534.18 93.97 8013876.71 5.00 152263657.47
Total 252454693.41 / 12350111.11 / 240104582.30 170567658.48 / 8013876.71 / 162553781.77
291 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
?Applicable □ Not Applicable
Items for provisions on a portfolio basis: Aging Analysis Portfolio
Unit: Yuan Currency: RMB
Ending Balance
Name
Book Balance Bad Debt Reserves Provision Ratio (%)
Within 1 year 247002222.12 12350111.11 5.00
Total 247002222.12 12350111.11 5.00
Explanation of Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of significant changes in the book balance of accounts receivable with changes in loss
reserves during the current period:
□Applicable ?Not Applicable
(3).Status of Bad Debt Reserves
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount of Changes in the Current Period
Beginning
Category Recovered or Other Ending Balance
Balance Provision Written off
Reversed Changes
Bad debt provision on an
individual basis
Bad debt provision on a
8013876.714336234.412350111.11
portfolio basis
Including: Related Party
Portfolio within the
Consolidation Scope
Aging Analysis Portfolio 8013876.71 4336234.4 12350111.11
Total 8013876.71 4336234.4 12350111.11
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
None
(4).Status of Accounts Receivable Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant accounts receivable
□Applicable ?Not Applicable
Explanation of write-off of accounts receivable:
292 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
□Applicable ?Not Applicable
(5).Overview of Accounts Receivable and Contract Assets Ranking Top Five in Ending Balances
Aggregated by Debtors
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Proportion in the
Total Ending
Ending Ending Balance of
Balance of Ending Balance
Ending Balance of Balance of Accounts
Company Name Accounts of Bad Debt
Accounts Receivable Contract Receivable and
Receivable and Reserves
Assets Contract Assets
Contract Assets
(%)
First 88827485.86 88827485.86 35.19 4441374.29
Second 42799438.69 42799438.69 16.95 2139971.93
Third 29455639.44 29455639.44 11.67 1472781.97
Fourth 19246037.00 19246037.00 7.62 962301.85
Fifth 13134060.56 13134060.56 5.20 656703.03
Total 193462661.55 193462661.55 76.63 9673133.07
Other Explanations:
None
Other Explanations:
□Applicable ?Not Applicable
2. Other Receivables
Presentation of Items
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Interest Receivable
Dividends Receivable 850000000.00 1000000000.00
Other Receivables 461253600.04 665966380.53
Total 1311253600.04 1665966380.53
Other Explanations:
□Applicable ?Not Applicable
Interest Receivable
(1).Classification of Interest Receivable
□Applicable ?Not Applicable
(2).Significant Overdue Interest
□Applicable ?Not Applicable
(3).Classified Disclosure by Bad Debt Provision Methods
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
293 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
□Applicable ?Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable ?Not Applicable
(4).Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of significant changes in the book balance of interest receivable with changes in loss
reserves during the current period:
□Applicable ?Not Applicable
(5).Status of Bad Debt Reserves
□Applicable ?Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
None
(6).Status of Interest Receivable Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant interest receivable
□Applicable ?Not Applicable
Write-off Explanation:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
Dividends Receivable
(1).Dividends Receivable
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items (or Invested Units) Ending Balance Beginning Balance
Tongliao Meihua 350000000.00 450000000.00
Jilin Meihua 200000000.00 350000000.00
Hong Kong Meihua 300000000.00 200000000.00
Total 850000000.00 1000000000.00
(2).Significant Dividends Receivable with an Aging Exceeding 1 year
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Whether Impairment
Items (or Invested Reason for
Ending Balance Aging Has Occurred and
Units) Non-receipt
Basis for Assessment
294 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
RMB100000000 due Within
No Payment
one year and RMB
Hong Kong Meihua 300000000.00 Has Been No
200000000 due in 1 to 2
Scheduled Yet
years.Total 300000000.00 / / /
(3).Classified Disclosure by Bad Debt Provision Methods
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable ?Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable ?Not Applicable
(4).Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable ?Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of significant changes in the book balance of dividends receivable with changes in loss
reserves during the current period:
□Applicable ?Not Applicable
(5).Status of Bad Debt Reserves
□Applicable ?Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable ?Not Applicable
Other Explanations:
None
(6).Status of Dividends Receivable Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant dividends receivable
□Applicable ?Not Applicable
Write-off Explanation:
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
Other Receivables
(1).Disclosure by Aging
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending Book Balance Beginning Book Balance
Within 1 year (including 1 year) 461077611.94 666459181.92
Within 1 year 461077611.94 666459181.92
295 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
1 to 2 years 188732.82 100000.00
2 to 3 years 100000.00 187214.39
Over 3 years
3 to 4 years 143883.77
4 to 5 years 200000.00
Over 5 years 86042687.00 85842687.00
Total 547552915.53 752789083.31
(2).Classification by Nature of Accounts
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Nature of Accounts Ending Book Balance Beginning Book Balance
Intercompany Account Current 458361345.55 651382152.78
Deposits 470000.00 600000.00
Receivables for Land and Real Estate 85672687.00 85672687.00
Others 1074893.62 782060.81
Export Tax Refunds receivable 1973989.36 14352182.72
Total 547552915.53 752789083.31
(3).Provision for Bad Debt Reserves
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Phase 1 Phase 2 Phase 3
Expected Expected Credit Expected Credit
Bad Debt Reserves Credit Losses Losses for the entire Losses for the entire Total
over the Next 12 Duration (without Duration (with Credit
Months Credit Impairment) Impairment)
Balance as of January 1
1150015.7885672687.0086822702.78
2025
Balance as of January 1
2025 during the Current
Period
-- Transferred to Phase 2
-- Transferred to Phase 3
-- Reversed to Phase 2
-- Reversed to Phase 1
Provision for the Current
Period
Reversal for the Current
523387.29523387.29
Period
Write-off for the Current
Period
Write-off for the Current
Period
Other Changes
296 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Balance as of December 31
626628.4985672687.0086299315.49
2025
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of significant changes in the book balance of other receivables with changes in loss reserves
during the current period:
□Applicable ?Not Applicable
Basis for amount of provisions for bad debt reserves and the assessment of significant increase in credit
risk of financial instruments:
□Applicable ?Not Applicable
(4).Status of Bad Debt Reserves
□Applicable ?Not Applicable
Including bad debt reserves with significant amount reversed or recovered during the current period:
□Applicable ?Not Applicable
Other Explanations:
None
(5).Status of Other Receivables Actually Written Off during the Current Period
□Applicable ?Not Applicable
Including write-off of significant other receivables:
□Applicable ?Not Applicable
Explanation of write-off of other receivables:
□Applicable ?Not Applicable
(6).Overview of Other Receivables Ranking Top Five in Ending Balances Aggregated by Debtor
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Proportion
in Total
Amount of
Ending
Ending Ending Nature of
Company Name Aging Balance of Bad
Balance Balances of Accounts
Debt Reserves
Other
Receivables
(%)
Intercompany
Jilin Meihua Amino Acid Co. Ltd. 445325305.55 81.33 Within 1 year
Account Current
Receivables for
Bazhou Metal Glass Furniture
85672687.00 15.65 Land and Real Over 5 years 85672687.00
Industrial Park
Estate
Langfang Meihua Biotechnology Intercompany
13000000.00 2.37 Within 1 year
Development Co. Ltd. Account Current
297 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Tibet Lhasa Economic and
Receivables for
Technological Development Zone
1973989.36 0.36 Land and Real Within 1 year 98699.47
Taxation Bureau State Taxation
Estate
Administration
RMB 654107.98 due
within one year RMB
Bazhou Work Injury Insurance 188732.82 due in1 to 2
986724.57 0.18 Others 123520.57
Management Office years and RMB
143883.77 due in 3 to 4
years
Total 546958706.48 99.89 / / 85894907.04
(7).Presented Under Other Receivables Due to Centralized Fund Management
□Applicable ?Not Applicable
Other Explanations:
□Applicable ?Not Applicable
3. Long-term Equity Investments
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Impair Impair
Items ment ment
Book Balance Book Value Book Balance Book Value
Reser Reser
ves ves
Investment in Subsidiaries 8069915728.14 8069915728.14 7637915728.14 7637915728.14
Investment in Associates and Joint
Ventures
Total 8069915728.14 8069915728.14 7637915728.14 7637915728.14
(1). Investment in Subsidiaries
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Beginni Increase/decrease during the period
Ending
ng Provis
Inve balanc
balance ion for
stme e of
Beginning Balance of impair Ending Balance
Invested Units Additional nt Ot he impair
(Book Value) impairm ment (Book Value)
investment redu rs ment
ent during
ctio provisi
provisio the
n on
n period
Tongliao Meihua Bio-Tech Co.
1955251411.241955251411.24
Ltd
Xinjiang Meihua Amino Acid Co.
2521485877.512521485877.51
Ltd.
298 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Langfang Meihua Seasoning Co.
252167723.87252167723.87
Ltd.Langfang Meihua Bio-Technology
72751138.2072751138.20
Development Co. Ltd.Lhasa Meihua Biological
800000000.00800000000.00
Investment Holding Co. Ltd.Meihua Group International
6277900.006277900.00
Trading (Hong Kong) Limited
Jilin Meihua Amino Acid Co. Ltd. 2029666677.32 2029666677.32
Zhuhai Hengqin Meihua
315000.00432000000.00432315000.00
Bio-Technology Co. Ltd.Total 7637915728.14 432000000.00 8069915728.14
(2). Investment in Associates and Joint Ventures
□Applicable ?Not Applicable
(3). Impairment Testing of Long-term Equity Investments
□Applicable ?Not Applicable
Other Explanations:
None
4. Operating Revenues and Operating Costs
(1). Status of Operating Revenues and Operating Costs
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items Period Period
Revenues Costs Revenues Costs
Main Business 16608976114.22 15828752840.14 16274518468.77 15698384731.99
Other Business 12890933.97 11965156.58 16869353.78 16595961.15
Total 16621867048.19 15840717996.72 16291387822.55 15714980693.14
(2). Decomposition Information of Operating Revenues and Operating Costs
□Applicable ?Not Applicable
Other Explanations:
?Applicable□ Not Applicable
(1) Decomposition Information of Operating Revenues and Operating Costs
Amount Incurred during the Current Period Amount Incurred during the Previous Period
Items
Revenues Costs Revenues Costs
By product
Food Flavor and Texture
5609626972.105403057361.815800892800.045613804836.97
Optimization Products
Animal Nutrition Amino
9673936210.319173660613.049099073256.548754982982.07
Acids
Human Medical Amino
398820490.24379681005.81397913690.47382619305.03
Acids
299 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Others 926592441.57 872353859.48 976638721.72 946977607.92
Total 16608976114.22 15828752840.14 16274518468.77 15698384731.99
By region
Domestic Sales 16416352265.78 15654931260.25 15986559260.56 15491862997.82
Export Sales 192623848.44 173821579.89 287959208.21 206521734.17
Total 16608976114.22 15828752840.14 16274518468.77 15698384731.99
(2) Top Five Customers by Revenue from Principal Operations
Contribution to Operating Revenues
Items Amount
(%)
First 642314209.83 3.86
Second 609290269.12 3.67
Third 406736567.66 2.45
Fourth 399642347.08 2.40
Fifth 398981043.32 2.40
Total 2456964437.01 14.78
(3). Explanation of Performance Obligations
□Applicable ?Not Applicable
(4). Explanation of Allocation to Remaining Performance Obligations
□Applicable ?Not Applicable
(5). Significant Contract Changes or Significant Adjustments to Transaction Prices
□Applicable ?Not Applicable
Other Explanations:
None
5. Investment Income
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred
Amount Incurred during
Items during the Current
the Previous Period
Period
Investment Income from Long-term Equity Investments
1450000000.001500000000.00
Accounted for by the Cost Method
Investment Income from Long-term Equity Investments
Accounted for by the Equity Method
Investment Income from the Disposal of Long-term Equity
Investments
Investment Income from Financial Assets Held for Trading
during the Holding Period
Dividend Income from Other Equity Instrument Investments
3308800.002816000.00
during the Holding Period
Dividend Income from Debt Investments during the Holding
Period
Dividend Income from other Debt Investments during the 14062361.11 12623494.45
300 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
Holding Period
Investment Income from the Disposal of Financial Assets Held
13016339.825814273.22
for Trading
Investment Income from the Disposal of Other Equity Instrument
Investments
Investment Income from the Disposal of Debt Investments
Investment Income from the Disposal of Other Debt Investments 156615.29 --
Debt Restructuring Gains
Total 1480544116.22 1521253767.67
Other Explanations:
None
6. Others
□Applicable ?Not Applicable
XX. Supplementary Information
1. Detailed Statement of Non-recurring Profits and Losses for the Current Period
?Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Explana
Items Amount
tion
Profits or losses from disposal of non-current assets including the portion offset against impairment
-36929707.83
provisions already accrued
Government grants recorded in the profit or loss for the current period excluding those closely
related to the Company's normal operating activities complying with national policies entitled 228086329.20
according to specified standards and having a continuous impact on the Company's profit or loss
Profits or losses arising from fair value changes of financial assets and financial liabilities held by
non-financial enterprises as well as profits or losses arising from the disposal of financial assets and
70432176.42
financial liabilities excluding the effective hedging business related to the Company’s normal
operating activities
Fund usage fees charged to non-financial enterprises and recorded in the profit or loss for the current
period
Profits or losses from entrusting others to invest or manage assets
Profits or losses from loans entrusted to others
Asset losses incurred due to force majeure such as natural disasters
Reversal of impairment reserves for receivables undergoing individual impairment testing
Income generated when the investment costs borne by the Company in acquisition of subsidiaries
associates and joint ventures are less than the fair value of identifiable net assets entitled to the 831441015.05
Company when the investment is acquired
Net profits or losses of subsidiaries generated from the beginning of the period to the date of
consolidation through enterprise merger under the same control
Profits or losses from non-monetary asset exchanges
Profits or losses from debt restructuring
One-time expenses incurred by enterprises due to discontinuation of related operating activities such
as employee resettlement expenses etc.
301 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
One-time impact on profit or loss for the current period due to adjustments to tax accounting and
other laws and regulations
Stock-based payment expenses recognized one-time due to cancellation or modification of equity
incentive plans
Profits or losses from changes in the fair value of employee compensation payable after the exercise
date for share-based payments settled by cash
Profits or losses from changes in the fair value of investment properties measured subsequently
using the fair value model
Income from transactions with significant price misalignment
Profits or losses from contingencies unrelated to the Company's normal operating activities 28618647.27
Custodian fee income from entrusted operations
Other non-operating revenues and expenditures not mentioned above -1657569.77
Other profit or loss items meeting the definition of non-recurring profits and losses
Less: Income tax impact 44570783.29
Minority shareholders’ equity impact (after tax)
Total 1075420107.05
For items not listed in the Explanatory Announcement for Information Disclosure by Companies that
Issue Securities to the Public No. 1 - Non-recurring Profits and Losses but considered as non-recurring
profits and losses with significant amounts as well as items defined as recurring profits and losses in the
Explanatory Announcement for Information Disclosure by Companies that Issue Securities to the Public
No. 1 - Non-recurring Profits and Losses the Company should provide reasons for such classification.□Applicable ?Not Applicable
Other Explanations
□Applicable ?Not Applicable
2. Return on Equity and Earnings per Share
?Applicable □ Not Applicable
Weighted Average Earnings per Share
Profits during the Reporting Period Return on Equity Basic Earnings Basic Earnings
(%) per Share per Share
Net profit attributable to ordinary shareholders of the
21.481.171.17
Company
Net profit attributable to ordinary shareholders of the
14.440.780.78
Company after deducting non-recurring profits and losses
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
□Applicable ?Not Applicable
4. Others
□Applicable ?Not Applicable
Chairman: Wang Aijun
Date Approved by the Board of Directors for Submission: April 21 2026
Revision Information
302 / 303Meihua Holdings Group Co. Ltd.-Annual Report 2025
□Applicable ?Not Applicable
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