Wellhope Foods Co. Ltd. 2025 Annual Report
Stock Code: 603609 Stock Abbreviation (English): Wellhope
Bond Code: 113647 Bond Abbreviation (English): Wellhope Convertible Bond
Wellhope Foods Co. Ltd.2025 Annual Report
1 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Important Statements
I. The Board of Directors all directors and senior management of the Company warrant that the contents
of this annual report are true accurate and complete and contain no false records misleading statements
or material omissions and shall bear individual and joint and several legal liability therefor.II. All directors of the Company attended the Board meeting.III. RSM China CPA LLP issued a standard auditor’s report with an unqualified opinion on the
Company’s financial statements.IV. Mr. Jin Weidong the person in charge of the Company and Mr. Chen Yu the person in charge of
accounting work and the head of the accounting department hereby declare and warrant that the
financial report contained in this annual report is true accurate and complete.V. Profit distribution proposal or proposal for conversion of capital reserve into share capital for the
reporting period approved by the Board of Directors
Under the 2025 profit distribution plan approved by resolution of the Board the Company will not
distribute cash dividends issue bonus shares or convert capital reserve into share capital and the
undistributed profits will be carried forward to the following year. Pursuant to the Rules for Share
Repurchases by Listed Companies issued by the China Securities Regulatory Commission share
repurchases by a listed company for cash consideration by way of tender offer or centralized bidding
shall be deemed to be cash dividends of the listed company and included in the calculation of the
relevant cash dividend payout ratios. During the year the Company repurchased shares through
centralized bidding for cash consideration of RMB 56466476.00 accounting for 107.52% of the net
profit attributable to shareholders of the Company for the year. Separately the cash consideration paid
for shares repurchased through centralized bidding and subsequently cancelled during the year amounted
to RMB 66391605.70 representing 126.42% of the net profit attributable to shareholders of the
Company for the year.The proposed profit distribution plan is subject to approval by the Shareholders’Meeting.VI. Risk statement on forward-looking statements
Forward-looking statements regarding future plans and development strategies in this report do not
constitute binding commitments by the Company to investors. Investors are advised to be aware of
investment risks.VII. Whether there was any non-operating use of funds by the controlling shareholder or other related
parties
No
VIII. Whether external guarantees were provided in violation of the required decision-making
procedures
No
IX. Whether more than half of the directors were unable to warrant the truthfulness accuracy and
completeness of the annual report disclosed by the Company
No
2 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
X. Material risk warning
The Company has described in detail the relevant risks it may face in this report. For details please refer
to the subsection headed “Potential Risks” under “Section III Management Discussion and Analysis”.XI. This annual report is published in both Chinese and English. In the event of any inconsistency or
ambiguity between the Chinese and English versions the Chinese version shall prevail. The Chinese
version of the 2025 Annual Report is available on the website of the Shanghai Stock Exchange at
www.sse.com.cn.
3 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Contents
Section I Glossary .................................. 5
Section II Company Profile and Key Financial Infor....6
Section III Management Discussion and Analysis ..... 11
Section IV Corporate Governance Environmental Prot...43
Section V Important Disclosures .....................61
Section VI Changes in Shares and Shareholders .......75
Section VII Corporate Bond ..........................79
Section VIII Financial Statements ...................82
The financial statements bearing the signatures and seals of the person in charge of the
Company the person in charge of accounting work and the head of the accounting
Documents department.available for The original auditor’s report bearing the seal of the accounting firm and the signatures
inspection and seals of the certified public accountants.The originals of all Company documents and announcements publicly disclosed on the
websites designated by the China Securities Regulatory Commission during the
reporting period.
4 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Section I Glossary
I. Glossary
CSRC refers to China Securities Regulatory Commission
SSE Stock Exchange refers to Shanghai Stock Exchange
Wellhope
the Company refers to Wellhope Foods Co. Ltd.Reporting period the
period refers to January 1 2025-December 31 2025
The end of the
reporting period refers to December 31 2025
period end
Koninklijke De Heus B.V. (Royal De Heus) the largest
Royal De Heus refers to privately held feed company in the Netherlands is the parentcompany of De Heus Mauritius Ltd. which is a corporate
shareholder of the Company.Articles of Association refers to Articles of Association of Wellhope Foods Co. Ltd.Shareholders’Meeting refers to Shareholders’Meeting of Wellhope Foods Co. Ltd.Board of Directors refers to Board of Directors of Wellhope Foods Co. Ltd.Company Law refers to Company Law of the People's Republic of China
Securities Law refers to Securities Law of the People's Republic of China
5 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Section II Company Profile and Key Financial Information
I. Company Information
Company name (English) Wellhope Foods Co. Ltd.Abbreviation (English) Wellhope
Company name (Chinese) 禾丰食品股份有限公司
Abbreviation (Chinese) 禾丰股份
Legal representative Jin Weidong
II. Contact Person and Contact Information
Secretary of the Board Representative of Securities Affairs
Name Chen Yu Zhao Changqing Ren Kunsong
No. 169 Huishan Street Shenbei New No. 169 Huishan Street Shenbei New
Address District Shenyang Liaoning Province District Shenyang Liaoning Province
PRC PRC
Tel 024-88081409 024-88081409
Fax 024-88082333 024-88082333
Email hf@wellhopefood.com hf@wellhopefood.com
III. Basic Information of the Company
Registered address No. 169 Huishan Street Shenbei New DistrictShenyang Liaoning Province PRC
On December 6 2016 the Company’s registered addresswas changed from “No. 67 Hunnan Development ZoneChanges in the Company's registered Shenyang City” to “No. 169 Huishan Street Shenbeiaddress New District Shenyang Liaoning Province”. For detailsplease refer to the Company’s Announcement No.
2016-045 disclosed on the website of the Shanghai Stock
Exchange.Office address No. 169 Huishan Street Shenbei New DistrictShenyang Liaoning Province PRC
Postal code 110164
Company website www.wellhope-ag.com
Email hf@wellhopefood.com
IV. Information Disclosure and Place where the Annual Report is Available for Inspection
Media name and website for disclosure of the China Securities Journal Shanghai Securities News
Company’s annual report Securities Times
Website of the stock exchange for disclosure of
the Company’s annual report www.sse.com.cn
Place where the Company’s annual report is
available for inspection Securities Department of the Company
V. Stock Information
Stock information
Stock type Stock exchange Stock abbreviation Stock code
A share Shanghai StockExchange Wellhope 603609
6 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
VI. Other Information
Name RSM CHINACPA LLP
Room 2801 Block B Enterprise Plaza No. 125
Accounting firm Office address Qingnian Street Shenhe District Shenyang
(domestic) Liaoning Province PRCNames of signing
certified public Wu Yu Zhao Songhe Zhang Yuanyuan
accountants
Name China Galaxy Securities Co. Ltd.Sponsor performing Office address
Qinghai Finance Building Building No.1 No. 8
Xiying Street Fengtai District Beijing
ongoing supervisory Names of signing
duties during the sponsor representatives Jin Hongya Gao Han
reporting period
Period of ongoing From the date of listing of the Company’s publicly
supervision issued convertible corporate bonds to the end ofthe following full fiscal year
VII. Key Accounting Data and Financial Indicators for the Last Three Years
1. Key accounting data
RMB
Item 2025 2024 Year-on-yearchange (%) 2023
Operating revenue 35761520925.94 32545260037.87 9.88 35970261909.41
Operating revenue after
deducting revenue unrelated
to the principal activities and 35683156750.85 32499057611.21 9.80 35924050473.57
revenue without commercial
substance
Total profit 133761879.22 393904030.08 -66.04 -480941429.71
Net profit attributable to
shareholders of the Company 52516855.05 342468141.14 -84.67 -457037550.28
Net profit attributable to
shareholders of the Company
after deducting non-recurring -75371898.28 349481351.97 -121.57 -503050322.71
gains and losses
Net cash flow from operating
activities 681096407.91 1176900496.53 -42.13 956152750.32
Change from
End of 2025 End of 2024 the end of theprevious year End of 2023
(%)
Net assets attributable to
shareholders of the Company 6619056056.05 6695188322.87 -1.14 6659295008.79
Total assets 18179629430.21 14882522901.31 22.15 14937114834.54
2. Key financial performance indicators
Item 2025 2024 Year-on-year change (%) 2023
Basic earnings per share (RMB) 0.06 0.38 -84.21 -0.50
Diluted earnings per share (RMB) 0.06 0.38 -84.21 -0.50
Basic earnings per share after deducting non-recurring
gains and losses (RMB) -0.08 0.39 -120.51 -0.55
Weighted average return on net assets (%) 0.79 5.06 Decreased by 4.27 percentagepoints -6.58
Weighted average return on net assets after deducting Decreased by 6.30 percentage
non-recurring gains and losses (%) -1.13 5.17 points -7.24
7 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
VIII. Key Financial Data by Quarter in 2025
RMB
Item Q1 Q2 Q3 Q4
Operating revenue 7707503546.35 9699135241.60 10665979574.19 7688902563.80
Net profit attributable to
shareholders of the Company 117943058.95 115126181.06 -103953443.95 -76598941.01
Net profit attributable to
shareholders of the Company
after deducting non-recurring 114202200.67 23573203.46 -110961888.43 -102185413.98
gains and losses
Net cash flow from operating
activities -663158753.50 151096430.23 394380477.53 798778253.65
IX. Non-recurring Gains and Losses
RMB
Item 2025 2024 2023
Gains or losses on disposal of non-current assets
including the reversal of previously recognized -19071287.35 -12802784.26 17370417.70
impairment provisions
Government grants recognized in profit or loss for the
period excluding those closely related to the
Company’s ordinary business in line with national
policies granted according to defined criteria and 38265999.01 40790123.39 83115983.41
having a continuing impact on the Company’s profit
or loss
Gains or losses arising from changes in fair value of
financial assets and financial liabilities held by
non-financial enterprises and gains or losses on
disposal of such financial assets and financial 4142203.96 -2489576.88 -1205993.28
liabilities other than effective hedging activities
related to the Company’s ordinary business
Reversal of impairment provisions for receivables
individually tested for impairment 6399293.02 1288016.75 9122730.49
Gains arising where the cost of investments in
subsidiaries associates and joint ventures is less than
the Company’s share of the fair value of the investees’ 3443489.11 14299036.35
identifiable net assets at the acquisition date
Other non-operating income and expenses not listed
above 9254605.28 -26982020.11 -49135731.60
Other items that meet the definition of non-recurring
gains or losses 114612999.75 655040.54 -10565822.12
Less: Income tax effect 24031038.65 3049188.70 21574736.43
Effect on non-controlling interests (net of tax) 5127510.80 4422821.56 -4586887.91
Total 127888753.33 -7013210.83 46012772.43
X. Table of Revenue Deductions
RMB 10000
Item 2025 Details of Details ofdeductions 2024 deductions
Operating revenue 3576152.09 / 3254526.00 /
Total revenue deductions 7836.41 / 4620.24 /
Total revenue deductions as a percentage of
revenue (%) 0.22 / 0.14 /
I. Revenue unrelated to the principal
activities
1. Other revenue outside the ordinary course
of business including revenue from leasing
fixed assets intangible assets and packaging
materials sales of materials non-monetary 7836.41 / 4620.24 /
asset exchanges involving materials
entrusted management services and other
8 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
revenue included in principal activity
revenue but outside the Company’s ordinary
course of business
2. Revenue from unlicensed quasi-financial
businesses such as interest income from
fund lending; and revenue from
quasi-financial businesses newly added in
the current or preceding accounting year
including guarantees commercial factoring
micro-loans finance leasing and pawn
businesses excluding finance leasing for the
sale of principal products
3. Revenue from trading businesses newly
added in the current or preceding accounting
year
4. Revenue from related-party transactions
unrelated to the Company’s existing
ordinary course of business
5. Revenue of subsidiaries acquired in
business combinations under common
control from the beginning of the period to
the combination date
6. Revenue from businesses that have not
formed or are unlikely to form a stable
business model
Subtotal of revenue unrelated to the
principal activities 7836.41 / 4620.24 /
II. Revenue without commercial
substance
1. Revenue from transactions or events that
do not significantly alter the risks timing or
amount of the enterprise’s future cash flows
2. Revenue from transactions lacking
genuine business substance such as
fictitious revenue from self-dealing or from
transactions structured through internet
technologies or other means
3. Revenue from transactions with
manifestly unfair pricing
4. Revenue from subsidiaries or businesses
acquired in business combinations during
the current accounting year for manifestly
unfair consideration or through
non-transaction arrangements
5. Revenue associated with a non-standard
auditor’s opinion
6. Revenue from other transactions or events
lacking commercial rationale
Subtotal of revenue without commercial
substance
III. Other revenue unrelated to the
principal activities or without commercial
substance
Operating revenue after deductions 3568315.68 / 3249905.76 /
XI. Companies with equity incentive schemes or employee stock ownership plans may elect to
disclose net profit excluding the impact of share-based payments
RMB
Key accounting data 2025 2024 Year-on-yearchange (%) 2023
Net profit excluding the impact of
share-based payments 54255188.36 344438252.13 -84.25 -457037550.28
9 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
XII. Items Measured at Fair Value
RMB
Item Opening balance Closing balance Changes during Impact on profit forthe period the period
Derivative financial assets 2441832.40 6473245.85 4031413.45 4276985.24
Total 2441832.40 6473245.85 4031413.45 4276985.24
XIII. Other
Not applicable
10 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Section III Management Discussion and Analysis
I. Business of the Company during the Reporting Period
Wellhope is a leading large-scale enterprise in China’s agriculture and livestock industry with principal
businesses covering animal feed integrated broiler operations and swine farming. In 2018 the Company
identified the food business as a strategic area for development. Since its establishment Wellhope hasremained committed to its corporate mission of “promoting the development of China’s livestockindustry conserving resources protecting the environment safeguarding food safety and benefitingsociety through advanced technology comprehensive services and high-quality products.” With unified
efforts across the organization and synergies among its business segments Wellhope is committed to
becoming a world-class enterprise in the agriculture livestock and food industries.During the reporting period there were no material changes in the Company’s principal businesses.Details are set out below:
Principal
business Primary products Operation model
Feed Pig feed poultry feed
Sales model: Distribution and direct sales
and ruminant feed Operation model: R&D procurement productionsales and services
Industrial chain model: covering key business
activities including broiler breeder farming
Integrated
broiler Live broilers broiler
hatching feed production commercial broiler
parts products farming broiler slaughtering and processing andoperations further processing of prepared and cooked products
Commercial broiler farming model: the Company
together with large-scale contract farms
Industrial chain model: covering a complete swine
Swine farming Finishing pigs piglets
breeding system comprising grandparent stock
breeding pigs parent stock piglets and market hogsFinishing pig farming model: contract farming and
a small proportion of company-owned farms
1. Animal feed
The Company produces feed for pig poultry ruminants and other animals with products sold across 32
provincial-level administrative regions in China. It also operates feed mills in Nepal Indonesia and thePhilippines. Guided by its R&D philosophy of “continuously developing new products and neverfollowing outdated practices” the Company develops tailored feed products for different growth stages
and farming scenarios to meet the nutritional needs of various animals. In addition the Company
provides farmers with integrated services and systematic solutions including farming guidance animal
disease prevention and control and operational management effectively helping customers improve
farming efficiency.The Company’s feed business has a complete and independent procurement production and sales system
enabling it to conduct business operations independently in light of its operational needs and market
demand. Adhering to the principle of “centralized management and localized operations” the Company
has adopted a refined and real-time production and operating model.
11 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Procurement Model:
The Company has established strategic partnerships with a number of leading raw material suppliers in
China and overseas. It adopts a three-tier procurement model combining group-level regional and local
procurement as well as futures and spot purchasing. The procurement team works closely with the
technical production and marketing teams to minimize raw material procurement costs.Production Model:
The Company primarily adopts a sales-driven order-based production model. Taking into account
product characteristics including delivery radius and shelf life the Company arranges centralized or
localized production as appropriate. Its ERP system integrates real-time production sales and inventory
data to support production decision-making and facilitate cross-departmental coordination.Sales Model:
The Company manages its feed sales business through a three-tier management system comprising
headquarters regional centers and subsidiaries. Headquarters formulates overall strategies and targets;
regional centers work with subsidiaries to develop implementation measures based on these strategies;
and subsidiaries formulate and execute specific action plans. During this process regional centers
provide supervision inspection and service support while headquarters continuously strengthens
comprehensive back-office support capabilities.
2. Integrated broiler operations
The Company’s integrated broiler operations are mainly located in the three northeastern provinces of
China namely Liaoning Jilin and Heilongjiang as well as in Hebei Henan and Shandong provinces.The business is structured into farming processing and further processing divisions with an integrated
value chain covering broiler breeder farming hatching feed production commercial broiler farming
broiler slaughtering and processing as well as further processing of prepared and cooked products. The
integrated operating model ensures a sufficient supply of raw materials at each stage and enables strict
control over the entire process from feed production broiler farming and slaughtering to meat and food
processing. Through standardized management and process-based operations the Company integrates
biosecurity veterinary drug residue control and hygiene safeguards in processing thereby achieving full
food safety traceability. Wellhope’s white-feather broiler business has developed rapidly in recent years
with improved alignment between its commercial broiler farming capacity and slaughtering capacity
while its overall scale has continued to grow. The Company has become a leading player in China’s
white-feather broiler industry.
12 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
The layout of Wellhope’s broiler industry chain is set out below:
? Farming division: The Company’s farming division covers broiler breeder farming hatching
commercial broiler farming and feed production. For parent stock the Company has developed
scientifically designed feeding programs lighting schedules and comprehensive health management and
disease prevention systems ensuring a stable supply of high-quality hatching eggs for its hatcheries. In
the hatching process the Company has established a sound production management system and
introduced intelligent batch incubation equipment high-efficiency energy-saving hatchers and advanced
environmental control systems ensuring a stable supply of healthy chicks for its commercial broiler
farms. For commercial broiler farming the Company primarily works with large-scale contract farms
and applies a standardized “nine-unified” management model. All commercial broilers are raised in
three-tier cage systems with key processes fully automated including feeding water supply
temperature and humidity control. The European Production Efficiency Factor (EPEF) of the Company’s
commercial broiler farming can reach 480–490 demonstrating strong farming performance that is
widely recognized by its large-scale partner farms.?Processing division: The Company has equity interests in more than 20 controlled and associated
slaughtering entities with an annual broiler slaughter capacity exceeding 1.1 billion birds. Equipped
with automated processing lines these companies apply strict inspection and quarantine procedures
veterinary drug residue testing and multi-level supervision to establish a comprehensive quality
assurance and traceability system. The Company continuously enhances its slaughtering and processing
standards through process optimization systematic training and 6S lean management. Among peers of
comparable scale the Company ranks among the industry leaders in carcass yield and slaughtering
efficiency per employee. Its broiler parts products are mainly supplied to customers including Shineway
Group Jinluo Group Yurun Group KFC Yoshinoya Wallace Yonghui Superstores RT-Mart large
regional catering companies fresh food markets and food processing plants with sales also extending to
countries including Mongolia and Bahrain and to the Hong Kong and Macao regions of China.? Further processing division: Leveraging the advantages of its integrated industrial chain the
Company uses high-quality chicken from own slaughterhouses as raw materials for further processing.
13 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Supported by modern energy-efficient production equipment the Company currently offers more than
100 further processed products. In offline channels the Company’s prepared and cooked products are
mainly supplied to central kitchens of restaurant chains corporate and school canteens supermarkets
and convenience stores. As consumer demand continues to evolve the Company has actively expanded
exports of cooked products which are now sold in Japan and South Korea and have received positive
market feedback.
3. Swine farming business
The Company began exploring the swine farming business in 2016 and designated it as a strategic
business in 2018. Through a combination of self-built facilities joint ventures and leasing arrangements
the Company has expanded its swine business footprint across Northeast North Central and East China.Its swine operations currently cover breeding pig farming and sales commercial piglet sales and
finishing pig farming mainly through contract farming with a small proportion conducted on
company-owned farms as well as hog slaughtering. By building comprehensive and stringent
biosecurity systems advanced breeding systems and science-based farming management systems the
Company is committed to developing an integrated swine industrial chain covering breeding farming
slaughtering and processing.A. High-standard farm construction
The Company develops its pig farms with a focus on appropriate individual farm scale and
fit-for-purpose facilities and equipment. Biosecurity considerations are embedded from the outset of
farm design while advanced production practices husbandry equipment intelligent feeding systems
climate-control equipment and digital production management tools are applied to improve operational
efficiency and create a comfortable healthy environment for swine growth.B. Comprehensive systematic operations
a. Genetics and breeding: The Company introduces high-quality French Danish and American breeding
stock to meet the needs of different operating regions enabling it to develop and supply breeding pigs
with pure bloodlines and complete traceable pedigrees. Through scientific selection and mating
programs and systematic breeding supported by its platform the Company continuously optimizes herd
structure strengthens genetic advantages and enhances competitiveness in swine farming.b. Feeding management: The Company has established a full-cycle efficient and dynamic swine feeding
management system. Drawing on databases covering feed nutrition and raw materials feed production
and product quality as well as farming performance the system integrates dynamic feed formulation
large-scale pig farm management and biosecurity technologies to deliver systematic nutrition and
feeding program solutions. Through continuous data collection analysis and performance tracking the
14 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company refines nutrition programs enhances internal management and strengthens risk early warning
thereby improving overall farming performance.c. Biosecurity management: The Company has established a multi-dimensional biosecurity system that
integrates small-unit rearing four-zone management three-tier disinfection targeted testing as well as
monitoring and early warning. Around each farm service zones off-site disinfection zones and other
biosecurity checkpoints are established to manage the movement of personnel vehicles and materials
with professional staff carrying out staged and thorough disinfection before entry. Inside the farms areas
are classified by biosecurity risk level and supported by corresponding isolation and barrier measures. AI
recognition and video monitoring are deployed at key biosecurity points to provide real-time visual
oversight and ensure effective implementation of biosecurity protocols. Each region is equipped with a
specialized African swine fever testing laboratory where real-time quantitative PCR and other testing
technologies are used for accurate detection rapid screening and targeted risk removal thereby helping
safeguard farm biosecurity.
4. The Company's industry position
Wellhope has been awarded numerous national-level honors including designation as a National Key
Leading Enterprise in Agricultural Industrialization and a National High-Tech Enterprise. Since its IPO
in 2014 the Company has been named four times among the Top 100 Most Valuable A-Share Listed
Companies in China and was recognized as one of the Top 10 Internationalized Brands in China’s
Livestock and Feed Industry for 2022–2023. In 2025 the Company was listed on the Fortune China 500
for the ninth time. Wellhope holds a leading position in Northeast China and maintains strong brand
influence in Northwest North and Central China. In the feed sector the Company is a Vice President
Member of the China Feed Industry Association and has been recognized as one of China’s Top 10
Leading Feed Enterprises. Its commercial feed sales rank among the leading companies in China and in
2025 the Company ranked 15th on the WATT Global Media Top Feed Companies List. In the broiler
sector Wellhope’s white-feather broiler business has expanded rapidly in recent years with improved
alignment between its commercial broiler farming capacity and slaughtering capacity and steady
expansion in overall scale. The Company has become a leading player in China’s white-feather broiler
industry. Based on its broiler slaughtering and processing volume the Company ranked 6th on the 2025
WATT Global Top Broiler Producers List.II. Industry Overview during the Reporting Period
1. Feed industry
In 2025 China’s overall price level stayed subdued while growth in animal protein supply significantly
outpaced demand. Downstream sectors including swine broiler layer and dairy farming remained in a
downturn. Feed producers faced sustained margin pressure and industry competition intensified as
companies cut prices to defend sales volume and maintain reasonable capacity utilization.On the supply side China’s industrial feed output reached 342.253 million tons in 2025 representing a
year-on-year increase of 8.6%. By product category pig feed output rose 15.6% to 166.394 million tons
and broiler feed output increased 3.5% to 100.977 million tons. The output of layer feed ruminant feed
15 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
and aquatic feed stood at 32.820 million tons 14.758 million tons and 23.231 million tons up 1.4%
1.8% and 2.7% year-on-year respectively. By sales model bulk feed volume increased 18.0% to
170.458 million tons accounting for 53.4% of total compound feed output up 4.1 percentage points
from the previous year.On the demand side the swine farming industry stayed in an expansion cycle with both hog inventory
and slaughter volume rising year-on-year and driving growth in pig feed demand. However large
integrated farming groups expanded capacity far faster than small and medium-sized farms further
intensifying competition in the commercial pig feed market. Broiler and layer inventories remained at
historically high levels with limited year-on-year increases. Excess capacity led to substantial losses for
farmers who therefore placed greater emphasis on the cost-effectiveness of feed products. In the
ruminant sector persistently weak domestic milk prices and operational pressure on local dairy
companies continued to weigh on dairy farming which was still undergoing capacity reduction. In
contrast beef cattle and sheep farming showed recovery momentum; farmers returned to profitability
and became more willing to restock driving rapid growth in ruminant feed demand.Overall competition in China’s feed industry continued to intensify magnifying the impact of gaps in
core capabilities among companies and accelerating performance divergence. Leading companies
continued to gain market share by leveraging their advantages in technology procurement branding
management capital and logistics while small and medium-sized companies gradually exited the market
amid intensifying competition further increasing industry consolidation.Note: The above industry data are sourced from statistical reports released by the China Feed Industry Association
and industry analysis reports from Boyar Hexun.
2. Broiler industry
In 2025 market prices for white-feather broilers in China declined year-on-year with profitability
diverging significantly across the value chain. The broiler breeder segment remained slightly profitable
the slaughtering segment recorded modest losses and commercial farming suffered heavy losses.On the supply side inventories of both grandparent and parent stock remained at high levels ensuring an
ample supply of commercial broiler chicks. Chick prices fell to low levels in the first half of the year.However weakened breeding performance coupled with frequent disease outbreaks tightened chick
supply in the second half driving a rebound in chick prices. In the commercial broiler segment live
broiler supply increased sharply in the first half with prices rebounding after hitting a trough. Prices
weakened again in July and stayed low until late in the fourth quarter when supply tightened due to
disease-related factors allowing live broiler prices to stabilize and recover. For the whole year China’s
broiler slaughter volume increased 8.9% year-on-year while output of broiler parts products rose by
12.94%. Commercial broiler farming remained under heavy loss pressure.
On the demand side the overall consumption recovery remained weak with slow-moving sales in
institutional catering foodservice and other downstream channels. Distributors generally purchased on
an as-needed basis and were reluctant to build inventories putting greater sales pressure on slaughtering
companies. Frozen product inventory levels remained high and companies mainly relied on negotiated
16 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
pricing to move inventory. In 2025 the average selling price of broiler parts products continued to
decline to RMB 8870 per ton. In July prices fell below RMB 8500 per ton hitting the lowest level
since 2018. As chicken product prices declined less sharply than live broiler prices the slaughtering
segment recorded a slight loss overall with noticeable divergence in profitability among companies.Overall China’s white-feather broiler industry saw capacity expand further from a high base in 2025
while demand remained relatively weak. White-feather broiler prices continued to decline and divergent
market conditions across the value chain further widened profitability gaps among companies. As
competition intensified stronger companies became increasingly better positioned while weaker players
exited the market at a faster pace.Note: The above industry data are sourced from the industry analysis report of Boyar Hexun.
3. Swine industry
In 2025 lower feed prices and continued gains in farming efficiency reduced production costs in the
swine farming industry. However hog prices fell faster than costs causing profit margins to narrow
rapidly across the sector. Compared with the farrow-to-finish model the purchased-piglet finishing
model recorded deeper losses in the second half mainly due to higher piglet restocking costs earlier in
the year.On the supply side hog supply increased moderately in the first half amid slow growth in the breeding
sow herd. At the same time some farmers delayed sales in anticipation of higher prices while secondary
finishing also absorbed part of the supply. As a result hog prices fluctuated within a range and did not
fall significantly. In the second half supply pressure intensified as hogs from earlier capacity expansion
entered the market. Delayed sales and heavier slaughter weights further shifted supply pressure into later
months. Hog prices quickly fell below the industry cost line hit their lowest level of the year in
mid-October and remained weak through the end of the year. Widespread industry losses further
accelerated capacity reduction. For the whole year China’s hog slaughter volume rose 2.4%
year-on-year pork output increased 4.1% year-on-year and the average hog price stood at RMB 14.44
per kilogram down 9.2% year-on-year.On the demand side growth in total retail sales of consumer goods slowed while the consumer
confidence index remained at low levels. Pork consumption stayed weak affected by factors such as
population decline and more diversified dietary preferences. Seasonal demand from traditional holidays
and cured meat production provided less support to pork prices while prolonged low prices for poultry
and other substitutes further squeezed demand for pork. For slaughtering companies had limited
confidence in a pork price recovery and showed little willingness to build inventories. Most companies
focused on fresh product sales bringing frozen pork inventory levels to a multi-year low. Overall weak
pork demand in 2025 intensified supply-demand pressure in the hog market.Overall China’s hog market saw a significant increase in supply in 2025 while demand failed to keep
pace resulting in a sharp decline in hog prices. With the industry still near the bottom of the cycle
competition among companies increasingly centered on efficiency cost control and quality further
accelerating industry consolidation and the exit of weaker players.
17 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Note: The above industry data are sourced from the official websites of the Ministry of Agriculture and Rural Affairs
and the National Bureau of Statistics and the industry analysis report of Boyar Hexun.III. Business Operation Analysis
During the reporting period the Company recorded operating revenue of RMB 35.762 billion up 9.88%
year-on-year; net profit attributable to shareholders of the Company was RMB 53 million down 84.67%
year-on-year; and net profit attributable to shareholders of the Company after deducting non-recurring
gains and losses was RMB -75 million down 121.57% year-on-year.
1. Feed business
In 2025 domestic demand for animal protein failed to absorb the expansion in livestock and poultry
production leaving most downstream farming segments including swine broiler layer and dairy
operations in a downturn. As upstream suppliers feed companies continued to face margin pressure
with many feed mills reducing prices to defend sales volume and maintain reasonable capacity
utilization. Against the backdrop of a shrinking commercial feed market and increasingly intense
competition the Company accelerated its business transformation. During the reporting period external
feed sales of the Company’s consolidated subsidiaries reached 4.64 million tons up 17% year-on-year.Of this total premix sales increased by 16% year-on-year concentrate feed sales decreased by 1% and
compound feed sales increased by 23%.Feed product 2025 (10000 tons) Year-on-year change Percentage of total
Pig feed 160 13% 34%
Poultry feed 206 21% 44%
Ruminant feed 83 22% 18%
Other feed 15 -12% 3%
Total (external sales) 464 17% 100%
For pig feed the Company further integrated the resources and capabilities of its farming and feed
businesses and strengthened coordination between the two segments. Leveraging farming expertise the
pig feed team worked more closely with farms and gained deeper insight into their procurement
production and biosecurity needs. This enabled the Company to better identify customer pain points and
provide more targeted services. At the same time relying on customer resources from its farming
segment the Company actively developed key-account business further expanded sales channels to
large-scale farm customers and built a service-oriented marketing system underpinned by its industrial
chain advantages thereby deepening cooperation with large-scale farm customers. During the reporting
period external sales volume of bulk feed increased by 30% year-on-year demonstrating solid progress
in the development of large-scale farms. For poultry feed as broiler and layer farmers continued to
suffer heavy losses demand for cost-effective feed products became more pressing. In response the
Company further strengthened cost and efficiency management across its poultry feed business while
maintaining strict quality control. It continued to refine feed formulation improve employee productivity
streamline business processes and reduce operating expenses. The Company also closely tracked
customers’ cash flow conditions and tightened control over accounts receivable risk. For ruminant feed
domestic milk prices remained weak for an extended period and local dairy companies continued to face
18 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
difficult operating conditions. At the same time China’s beef cattle and sheep markets still offered
significant growth potential. In response the Company continued to adjust the product and customer mix
of its ruminant feed business. While maintaining existing high-quality dairy cattle customers the
Company stepped up efforts to develop high-quality new customers in the beef cattle and sheep
segments. During the reporting period external sales volume of beef cattle feed increased by 28%
year-on-year sheep feed increased by 26% and dairy cattle feed decreased by 1%.
2. Integrated broiler business
In recent years capacity in the broiler industry has expanded rapidly while the recovery in downstream
end-consumer demand has remained below expectations. This has highlighted the imbalance between
high capacity and weak demand in the white-feather broiler industry with continued pressure on
profitability across the value chain. According to Boyar Hexun’s annual research report China’s
white-feather broiler value chain recorded an overall loss in 2025: the breeder segment achieved slight
profits the slaughtering segment incurred modest losses and the commercial farming segment suffered
heavy losses.Against a weak industry backdrop the Company completed the acquisition of equity interests in 13
associated companies further optimizing the ownership structure of its integrated broiler operations.Externally the Company actively expanded markets and refined marketing strategies; internally it
continued to pursue cost reduction and efficiency improvement while enhancing operational capabilities
enabling the business to navigate the industry downturn with resilience. During the reporting period the
Company’s consolidated and associated companies raised and marketed 800 million broilers with total
slaughter volume reaching 990 million. In breeder operations to address the ongoing decline in domestic
breeding stock quality the Company further strengthened strategic cooperation with high-quality
domestic suppliers continued to introduce superior imported breeds strengthened quality control over
breeding stock it also brought in specialized talent to enhance team capabilities and continuously
optimized key production indicators to better ensure the quality of commercial chicks. In commercial
broiler farming given ample farming capacity in the market the Company temporarily suspended the
expansion of commercial broiler farming and increased external procurement of live broilers for
slaughter reducing the share of self-supplied live broilers to approximately 80%. Meanwhile the
Company dynamically adjusted feed formulas feeding programs market weights and days to market in
line with market conditions and optimized settlement arrangements for contract farming fees to further
reduce costs and improve efficiency. In slaughtering operations the Company focused on developing
high-value sales channels. In 2025 the share of such channels including export channels quick-service
restaurants and supermarkets rose from 38% in the prior year to 41%.
3. Swine farming business
In 2025 hog prices fluctuated downward. Although farming costs also declined the decrease did not
fully offset the fall in hog prices causing industry margins to narrow rapidly. Compared with
farrow-to-finish operations purchased-piglet finishing operations incurred deeper losses in the second
half mainly due to elevated piglet procurement costs earlier in the year.
19 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
During the reporting period the Company marketed 2.19 million hogs including 1.94 million finishing
pigs and 250000 piglets and breeding pigs. The Company maintained a relatively stable herd size. As of
the end of 2025 the Company had 50000 productive sows and 10000 replacement gilts bringing total
sow inventory to 60000. In breeding farm management the Company implemented precision feeding
programs and applied differentiated feeding standards based on backfat thickness. Meanwhile it
optimized estrus management and promoted the use of estrus synchronization technology to enhance
batch mating efficiency while strengthening pregnancy diagnosis and targeted gestation management
standardizing farrowing house operations and improving newborn piglet care. The Company also
established health records for replacement gilts applied strict selection criteria and removed
underdeveloped animals. In finishing operations the Company rolled out a benchmarking system for
operational indicators across its contract farms supported by monthly operating analysis meetings at thegroup regional and farm levels. Through a benchmarking-based management model of “learning fromexternal best practices and replicating proven internal practices” the Company quickly identified the
core issues of each farm established task lists and effectively implemented improvement plans. Under
such model the Company’s hog finishing performance improved notably during the year with fattening
cost per kilogram reduced to an excellent level within the industry. In biosecurity the Company
responded to changes in animal disease by continuously upgrading breeding farm facilities and
equipment carefully selecting regions for contract finishing and strictly standardizing disease
prevention and control procedures thereby effectively improving the quality and effectiveness of its
biosecurity system.IV. Analysis of Core Competitiveness During the Reporting Period
The Company’s core competitiveness is primarily reflected in its high-caliber committed and proactive
management team; its business strategy underpinned by rational planning and steady development; its
increasingly well-developed industry footprint with advantageous positioning; its systematic
science-based and continuously innovative R&D system; its steadily growing and vertically extending
brand influence; and its corporate culture that guides development fosters cohesion and empowers the
organization.
1. A high-caliber committed and proactive management team
Talent is Wellhope’s most important resource and one of the key drivers of the Company’s core
competitiveness. Anchored by core members with equity participation established over the course of the
Company’s development the management team mainly comprises highly educated professionals with
strong expertise extensive management experience and deep industry knowledge enabling them to
accurately assess industry trends and the operating environment and to formulate sound development
strategies. More importantly they have a deep understanding of and strong commitment to the
Company’s core values and management philosophy. Most of the Company’s middle and senior
managers have been selected and developed internally. Core team members are covered by various
incentive mechanisms have their long-term interests closely aligned with those of the Company and
demonstrate a strong sense of ownership. Over the past three decades the Company’s middle and senior
20 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
management team has remained highly stable. Managers at or above the general manager level have
rarely resigned voluntarily apart from adjustments made due to failure to meet performance assessment
requirements. Young managers who continue to strengthen the management team have been rigorously
selected from the Company’s key talent development programs such as “Seedling” and “Sunflower”.With strong commitment to the Company and a proactive mindset they have become the backbone of
the management team. Moreover the Company attaches great importance to continuous learning and
competence enhancement for managers. It has established training programs for middle and senior
managers including EDP and the Leadership Training Camp and organizes visits to leading companies
at home and abroad to help them broaden horizons and continue to improve capabilities. Unstable
management and disunity among senior executives are key factors that have caused some domestic
companies to encounter development difficulties or even fail. By contrast Wellhope’s high-caliber
committed and proactive management team represents one of the Company’s most important core
strengths both now and in the future and a key reason for the Company’s firm confidence in its future
development.
2. A business strategy underpinned by rational planning and steady development
Drawing on a thorough understanding of domestic and international political economic and industry
dynamics the Company places long-term development and risk control at the core of its business
planning while focusing on the operating quality and investment returns of its principal businesses and
new projects. Guided by the philosophy of steady growth and sound development Wellhope allocates
resources prudently advances in a phased manner and maintains a balanced and resilient industrial
structure. Risk prevention and sustainable long-term development remain key objectives for the
Company. This is mainly reflected in the following areas:
A. Prudent expansion into new business areas: Wellhope started with feed premixes and after years of
deep cultivation in the feed industry has become one of China’s top 10 commercial feed producers. In
2008 after careful evaluation the Company entered the broiler business. After 18 years of exploration
and dedicated efforts the broiler processing volume of Wellhope’s subsidiaries and associates now ranks
sixth globally with management standards and key technical indicators reaching leading levels in China
and internationally. In 2018 to seize development opportunities and mitigate industry risks the
Company strategically entered the swine farming business. Through joint ventures and wholly-owned
projects it has built professional teams accumulated operational experience and established core
capabilities in this segment. Over the medium to long term the Company will continue to strengthen its
two core strategic businesses namely animal feed and integrated broiler operations while promoting
high-quality development of two strategic segments under development namely swine farming and food
processing. It will gradually build regional food brands and work toward becoming an enterprise in
agriculture livestock and food industries with leading capabilities in safety quality cost control and
operational efficiency.B. An operating model aligned with industry trends: The Company has gradually developed a
competitive and risk-resilient integrated value chain spanning feed production breeding farming
21 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
animal health products slaughtering and further food processing. This integrated operating model
enables close coordination and mutual support among business segments reduces intermediate links
lowers transaction risks helps cushion the impact of market price fluctuations improves profit potential
and safeguards food safety. It represents a key development direction for agricultural and livestock
enterprises amid an increasingly complex and volatile economic and industry landscape.C. Steady and disciplined market expansion: Despite its strong performance in the feed and broiler
businesses in Northeast China the Company has not pursued blind or rapid nationwide expansion.Instead based on thorough market analysis it has adopted a steady step-by-step expansion strategy
gradually extending its presence from Northeast China to Northwest China North China Central China
Shandong and East China. In market expansion the Company strictly controls capital-intensive
investment actively pursues an asset-light model where applicable and remains focused on operating
efficiency and investment returns.D. Strict financial risk management: The Company attaches great importance to financial risk
management and control. Since its listing it has continuously improved internal risk control system
standardized corporate governance structure and strengthened risk awareness. In financial management
the Company adopts a vertical management model with financing and credit fund management and
guarantee activities managed on a centralized basis. Taking into account the macroeconomic
environment industry trends and actual operating conditions the Company maintains prudent control
over leverage levels and effectively reduces financing costs.
3. An increasingly well-developed industry footprint with advantageous positioning
The advantages of the Company’s industry footprint are mainly reflected in two aspects: geographical
positioning and business structure.A. Favorable geographical positioning: Headquartered in Shenyang Liaoning Province the Company
focuses its core businesses in northern China particularly Northeast China. Recognized under national
policies as a region with significant potential for livestock farming Northeast China features
high-quality raw materials favorable climatic conditions low farming density and relatively low labor
costs making it suitable for agricultural and livestock businesses. As China’s largest grain-producing
region Northeast China has abundant supplies of high-quality corn and rice. Supported by a
well-developed grain processing industry this region provides a wide variety of grain and grain
by-products for feed use with strong cost advantages and convenient logistics. Following the
implementation of the targeted rice auction policy Northeast China has further benefited from
distinctive advantages in supply volume and overall cost. The Company’s white-feather broiler
operations are mainly located in the three northeastern provinces (Liaoning Jilin and Heilongjiang)
Henan Hebei and Shandong which together account for more than 75% of China’s total white-feather
broiler output. As major white-feather broiler production bases in China these regions have a solid
farming foundation and relatively mature sales networks. For integrated operations the Company
concentrates its value-chain resources in regional clusters to leverage core local resources build scale
advantages in key markets improve operational efficiency and reduce logistics costs. In addition the
22 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company is actively expanding into overseas markets and has established production facilities in
countries with strong potential for livestock industry development including the Philippines Indonesia
and Nepal with favorable prospects for future growth.B. Continuously optimized business structure: Rooted in agriculture and livestock sectors the Company
adopts a strategy of horizontal diversification and vertical integration. With the continuous optimization
of business structure its overall risk resilience and sustainable profitability have been steadily enhanced.C. Horizontal diversification and vertical integration: In terms of horizontal diversification while further
strengthening and expanding feed business the Company has vigorously promoted broiler business
aiming to achieve a leading position in China and globally. It has also steadily consolidated swine
business striving to establish a leading presence in the regions where it operates. In terms of vertical
integration and value-chain deepening the integrated operating model represents an important
development direction for agricultural and livestock enterprises in China. Having developed feed
farming and slaughtering businesses over many years the Company has built a competitive and
risk-resilient value chain. Going forward it will continue to improve coordination among business
segments along the chain further develop food processing accelerate the development of a complete
value chain and continuously optimize its coordination and collaboration mechanisms to further
strengthen business synergies.
4. A systematic science-based and continuously innovative R&D system
Guided by its corporate mission of promoting the development of China’s livestock industry conserving
resources protecting the environment ensuring food safety and benefiting society through advanced
technologies comprehensive services and high-quality products the Company’s R&D system has
always remained customer-centered and market-oriented. With the goals of product safety consistent
quality precision nutrition and customer service the Company continues to pursue technological
innovation and new product development. It has developed a highly competitive model for R&D
collaboration and built a diligent and deeply engaged technical team. Leveraging Wellhope Research
Institute as the platform the Company has established a three-tier R&D system and an efficient system
for technology application and transfer. It also possesses leading domestic testing capabilities an
efficient and precise dynamic raw material database a mature and high-quality product portfolio and
continuously improving service capabilities.A. A diligent and deeply engaged R&D team: Relying on its well-established value chain the Company
has built a multidisciplinary R&D team spanning feed product development farming technologies and
production and processing technologies across feed broilers swine and biological additives. The
Company’s R&D team comprises several hundred professionals including master’s and doctoral degree
holders professors and senior experts. Senior experts with strong theoretical backgrounds provide
high-level guidance on translating advanced technologies into production practices while experienced
technical personnel conduct on-site validation and adapt solutions to actual operating conditions. The
Company has been recognized as the National and Local Joint Engineering Research Center for the
R&D and Application of New Biological Feed the Feed Processing Sub-center of the National
23 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Agricultural Product Processing Technology R&D System a Comprehensive Experimental Station
under the National Swine Industry Technology System the Biotechnology R&D Center of the Liaoning
Agricultural Product Deep Processing and Biopharmaceutical Industry Cluster and the Liaoning
Innovation Team for Feed Technology and Safety.B. Highly competitive R&D collaboration: In 2006 the Company began its partnership with Royal De
Heus a Dutch company with over a century of history. Drawing on De Heus’s globally advanced
technical resources leading know-how and mature management practices the Company has maintained
a leading technological position in areas such as safe and high-quality feed precision nutrition and
efficiency antibiotic-free and eco-friendly feed solutions as well as raw material substitution. The
Company’s R&D team has maintained frequent technical exchanges with Royal De Heus enabling
Wellhope to stay informed of the latest global technological developments and R&D achievements. By
combining these resources with more than 30 years of its own technical accumulation and the practical
conditions in livestock farming the Company continues to optimize and upgrade its products and
services for customers. It also maintains in-depth cooperation with research institutes and universities
including China Agricultural University Nanjing Agricultural University Shenyang Agricultural
University and Northeast Agricultural University in areas such as new technologies for feed products
and meat products as well as joint training of professional talent.C. Leading domestic R&D testing capabilities and databases: The Company’s R&D testing center is one
of the few CNAS-accredited laboratories among domestic feed enterprises with testing results
recognized in 60 countries and regions worldwide. Equipped with leading testing instruments in China
the center operates three types of laboratories: physical and chemical testing microbiological testing and
precision instrumental analysis. Covering both microscopic and macroscopic testing needs the center
helps ensure product quality and embeds safe production principles throughout the process. Meanwhile
the Company has established a dynamically updated raw-material database and shares data resources
with its Dutch partner. It maintains precise databases on net energy systems amino acids crude fiber and
fatty acids for sows commercial pigs breeding cattle and commercial cattle enabling precision
formulation of animal diets based on production performance and feed intake while continuously
optimizing formulation costs and enhancing product cost-effectiveness.D. Substantial R&D achievements: R&D is an inexhaustible driver of sustainable development and
Wellhope has achieved substantial R&D results over the years. As of the end of the reporting period the
Company held 78 invention patents and had won two National Science and Technology Progress Awards
one National Technology Invention Award one First Prize of the National Harvest Award for Agriculture
Animal Husbandry and Fisheries and nearly 20 science and technology awards at the provincial and
ministerial levels.
5. Steadily growing and vertically extending brand influence
With more than 30 years of development Wellhope has successfully established both product and
corporate brands in China’s agriculture and livestock sectors. Amid the ongoing transformation and
upgrading of the livestock farming sector the influence of the Wellhope brand is expected to become
24 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
increasingly evident.A. Product brand: Over the years supported by leading technologies high-quality products and a
continuously improving service system the Wellhope brand has earned broad recognition and trust
across the markets it serves with particularly strong influence in northern China. The Company has
received numerous honors including Liaoning Famous Brand Liaoning Famous Trademark China
Well-known Trademark China Top 500 Most Valuable Trademarks Most Influential Brand in China’s
Livestock Industry Trusted Product of China Feed Industry and the Liaoning Provincial Governor’s
Quality Award.B. Corporate brand: The Company has long upheld the core values of integrity responsibility and
win-win cooperation. Many of its businesses operate through long-term joint ventures with partners
with some partnerships spanning more than 10 years or even over 20 years including two decades of
friendly cooperation with Royal De Heus. The Company also maintains stable long-term strategic
partnerships with a number of multinational and domestic suppliers. These successful partnerships
demonstrate the recognition and acceptance of the Wellhope corporate brand among its partners. As an
employer brand Wellhope is widely recognized and valued by employees and is regarded by many job
seekers as a high-quality career development platform. The Company has been named “Best Employer”three times by Zhaopin Limited and won the “Top 10 Best Employer Brands in China’s Livestock andFeed Industry” award in 2022.C. Brand extension: As the Company continues to expand broiler and swine businesses and advance the
strategy of “horizontal diversification and vertical integration” its market share has been gradually
increasing in related areas such as animal health breeding farming fresh meat products prepared foods
and cooked products. Its market reputation and brand recognition have also continued to improve. To
ensure consistent use of the Wellhope brand and protect its core brand value the Company does not
apply the master brand indiscriminately across all business areas. Instead based on the development
stage of each business it adopts a differentiated brand architecture and selectively strengthens brand
development in mature business segments further enhancing the industry influence and commercial
value of the Wellhope brand.
6. A corporate culture that guides development fosters cohesion and empowers the organization
Over more than 30 years of development the Company has fostered a distinctive culture that guides its
development builds organization-wide alignment and empowers employees to drive business execution.Its core values of integrity responsibility and win-win cooperation together with its management
philosophy of innovation efficiency and self-discipline have become deeply ingrained in the way
Wellhope operates. They guide employees’ conduct and are reflected in the Company’s talent selection
strategic planning business decision-making and day-to-day management. Shared values help enhance
organizational efficiency strengthen cohesion and support effective execution. Corporate culture also
provides an important foundation for the Company’s management practices and long-term development.The Company closely integrates its culture-building efforts with its principal businesses leveraging
culture as a practical management tool to drive quality improvement and efficiency gains across its feed
25 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
broiler and swine operations. In 2025 senior executives visited operating units to conduct
culture-sharing and discussions helping align teams with organizational goals and energize front-line
teams. Focusing on cost reduction and efficiency enhancement headquarters and business segments
launched tiered innovation and efficiency improvement competitions. The Company identified key
company-wide initiatives and regional priority projects at the beginning of the year making
company-wide innovation more targeted and practical. It also introduced a dedicated AI application
program and rolled out systematic employee training to foster the broad adoption of AI tools injecting
new momentum into operational efficiency improvement. In conjunction with its 30th anniversary
celebration and various employee activities organized by subsidiaries the Company further energized
front-line teams strengthened team cohesion and reinforced a high-performance culture. Meanwhile it
continued to promote and apply management concepts including “process performance”
“benchmarking” “execution” and “criticism and self-criticism” providing strong support for the
implementation of the Group’s strategies.Wellhope’s development over the past three decades has demonstrated that corporate culture is an
important competitive moat for the Company. Continuously strengthening cultural development remains
a long-term and significant priority for Wellhope.V. Operations during the Reporting Period
During the reporting period the Company recorded operating revenue of RMB 35.762 billion
representing a year-on-year increase of 9.88%; net profit attributable to shareholders of the Company
was RMB 53 million representing a year-on-year decrease of 84.67%; and net profit attributable to
shareholders of the Company after deducting non-recurring gains and losses was RMB -75 million
representing a year-on-year decrease of 121.57%.
1. Analysis of principal business
A. Analysis of changes in income statement and cash flow statement items
RMB
Item 2025 2024 Change %
Operating revenue 35761520925.94 32545260037.87 9.88
Operating cost 33692727698.13 30447129165.17 10.66
Selling expenses 787367067.70 709944370.21 10.91
Administrative expenses 750725563.66 672530023.01 11.63
Financial expenses 214770807.60 168191270.31 27.69
R&D expenses 28824671.65 29041137.57 -0.75
Net cash flow from operating
activities 681096407.91 1176900496.53 -42.13
Net cash flow from investing
activities -1039555043.82 -448278145.58 -131.90
Net cash flow from financing
activities 300305454.76 -877353019.52 134.23
Explanation of the above changes:
Operating revenue: mainly due to the increase in sales volumes of feed broiler and swine businesses
during the period.Operating cost: mainly due to the increase in sales volumes of feed broiler and swine businesses during
the period.
26 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Selling expenses: mainly due to the increase in employee compensation on a consolidated basis
following the acquisition of equity interests in associated companies engaged in the broiler business
during the period.Administrative expenses: mainly due to the increase in employee compensation on a consolidated basis
following the acquisition of equity interests in associated companies engaged in the broiler business
during the period.Financial expenses: mainly due to the increase in interest expenses on a consolidated basis following the
acquisition of equity interests in associated companies engaged in the broiler business during the period.Net cash flow from operating activities: mainly due to the increase in cash payments to and on behalf of
employees on a consolidated basis following the acquisition of equity interests in associated companies
engaged in the broiler business during the period.Net cash flow from investing activities: mainly due to a year-on-year increase in cash paid for
investments during the period.Net cash flow from financing activities: mainly due to a year-on-year increase in bank loans during the
period.
27 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
B. Analysis of revenue and cost
During the reporting period the Company recorded operating revenue of RMB 35.762 billion up 9.88%
year-on-year. The operating cost amounted to RMB 33.693 billion up 10.66% year-on-year.a. Breakdown of revenue by segment product region and sales channel
RMB
Analyzed by segment
Revenue Cost
Segment Operating revenue Operating cost Grossmargin % change change
Gross margin
YoY% YoY% change YoY%
Decreased by
Feed 13459577751.73 12137385674.07 9.82 7.60 8.58 0.81 percentage
points
Broiler Decreased by
integration 16185346810.81 15870258326.29 1.95 42.73 44.01 0.87 percentagepoints
Decreased by
Swine
farming 3545237226.22 3528100442.87 0.48 6.86 20.80
11.49
percentage
points
Raw Increased by
materials 1840524517.54 1528517513.73 16.95 -63.19 -69.59 17.49
trading percentagepoints
Decreased by
Other
businesses 652470444.55 567697449.81 12.99 95.89 114.52
7.56 percentage
points
Analyzed by product
Revenue Cost
Product Operating revenue Operating cost Gross change change Gross marginmargin % YoY% YoY% change YoY%
Decreased by
Feed 13459577751.73 12137385674.07 9.82 7.60 8.58 0.81 percentage
points
Broiler Decreased by
integration 16185346810.81 15870258326.29 1.95 42.73 44.01 0.87 percentagepoints
Decreased by
Swine
farming 3545237226.22 3528100442.87 0.48 6.86 20.80
11.49
percentage
points
Raw Increased by
materials 1840524517.54 1528517513.73 16.95 -63.19 -69.59 17.49
trading percentagepoints
Other Decreased by
businesses 652470444.55 567697449.81 12.99 95.89 114.52 7.56 percentagepoints
Analyzed by region
Revenue Cost
Region Operating revenue Operating cost Gross change change Gross marginmargin % YoY% YoY% change YoY%
Decreased by
East China 5554994709.73 5335926512.45 3.94 17.16 17.34 0.15 percentage
points
North Decreased by
China 5533694138.88 5218835974.58 5.69 26.30 27.81 1.11 percentagepoints
Northeast
China 15117273427.85 14068811979.44 6.94 -4.18 -4.22
Increased by
0.04 percentage
28 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
points
Central and Decreased by
South 6715752686.37 6391293076.08 4.83 23.48 25.68 1.67 percentage
China points
Southwest Increased by
China 1088345231.57 1045647176.94 3.92 80.63 78.63 1.08 percentagepoints
Northwest Decreased by
China 1101638058.85 1031753020.15 6.34 9.31 14.13 3.95 percentagepoints
Overseas Decreased by
market 571458497.60 539691667.13 5.56 3.76 4.46 0.63 percentagepoints
Analyzed by sales channel
Sales Revenue Cost
channel Operating revenue Operating cost
Gross
margin % change change
Gross margin
YoY% YoY% change YoY%
Increased by
Direct sales 16146651875.59 14974352980.45 7.26 -31.71 -32.30 0.80 percentage
points
Distributor Decreased by
sales 19536504875.26 18657606426.32 4.50 120.66 124.96 1.83 percentagepoints
b. Analysis of sales volume
Production
Sales volume Inventory
Production volume Sales volume Inventory volume
Product change change
(10000 tons) (10000 tons) (10000 tons) change
YoY% YoY%
YoY%
Feed products 673.96 464.38 8.32 26.70 17.21 51.27
Broiler parts 191.11 185.62 3.39 77.51 73.80 35.06
products
Explanation: The above sales volumes represent external sales and exclude intercompany sales.c. Analysis of cost
RMB
% of
By Industry Item 2025 % of totalcosts 2024 total
YoY
costs change %
Feed Raw materials 11334967357.85 95.36 9934436780.88 94.35 14.10
Feed Labor costs 157066373.95 1.32 173184097.12 1.64 -9.31
Feed Depreciation 111598599.55 0.94 143890233.53 1.37 -22.44
Feed Energy (electricitycoal steam) 128609521.25 1.08 159474147.12 1.51 -19.35
Other
manufacturing
Feed expenses (excluding 153736824.83 1.29 118427413.36 1.12 29.82
energy and
depreciation)
Feed Total productioncost 11885978677.43 100.00 10529412672.01 100.00 12.88
Broiler Raw materials 13201909681.35 85.85 9258588070.50 85.02 42.59
Broiler Labor cost 655150085.34 4.26 577534915.23 5.30 13.44
Broiler Depreciation 139225184.96 0.91 85263486.93 0.78 63.29
Broiler Energy (electricitycoal steam) 138017608.18 0.90 105303466.83 0.97 31.07
Other
Broiler manufacturing 1244092952.59 8.09 863002228.40 7.92 44.16
expenses (excluding
29 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
energy and
depreciation)
Broiler Total productioncost 15378395512.42 100.00 10889692167.89 100.00 41.22
% of
By Product Item 2025 % of totalcosts 2024 total
YoY
costs change %
Feed Raw materials 11334967357.85 95.36 9934436780.88 94.35 14.10
Feed Labor costs 157066373.95 1.32 173184097.12 1.64 -9.31
Feed Depreciation 111598599.55 0.94 143890233.53 1.37 -22.44
Feed Energy (electricitycoal steam) 128609521.25 1.08 159474147.12 1.51 -19.35
Other
manufacturing
Feed expenses (excluding 153736824.83 1.29 118427413.36 1.12 29.82
energy and
depreciation)
Feed Total productioncost 11885978677.43 100.00 10529412672.01 100.00 12.88
Broiler Raw materials 13201909681.35 85.85 9258588070.50 85.02 42.59
Broiler Labor cost 655150085.34 4.26 577534915.23 5.30 13.44
Broiler Depreciation 139225184.96 0.91 85263486.93 0.78 63.29
Broiler Energy (electricitycoal steam) 138017608.18 0.90 105303466.83 0.97 31.07
Other
manufacturing
Broiler expenses (excluding 1244092952.59 8.09 863002228.40 7.92 44.16
energy and
depreciation)
Broiler Total productioncost 15378395512.42 100.00 10889692167.89 100.00 41.22
d. Major customers and suppliers
d-1: major customers and suppliers
Sales to the top five customers amounted to RMB 1.62 billion accounting for 4.54% of total annual
sales. There were no related-party sales among these customers.Purchases from the top five suppliers totaled RMB 4.62 billion accounting for 13.72% of total annual
purchases. There were no related-party purchases among these suppliers.d-2: The Company recognized trading revenue during the reporting period
RMB 10000
Status of trading
business Current period revenue Prior period revenue Year-on-year change %
Feed raw materials
trading 184052.45 499964.61 -63.19
C. Expenses
RMB
Item 2025 2024 Year-on-year change %
Selling expenses 787367067.70 709944370.21 10.91
Administrative
expenses 750725563.66 672530023.01 11.63
R&D expenses 28824671.65 29041137.57 -0.75
Financial expenses 214770807.60 168191270.31 27.69
D. R&D Investment
a. R&D investment
30 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
RMB
Expensed R&D investment 28824671.65
Capitalized R&D expenditures 0.00
Total R&D investment 28824671.65
% of operating revenue 0.08
Capitalization ratio of R&D investment % 0.00
b. Headcount
Number of R&D personnel 138
Percentage of total staff % 1.17
Educational structure
Item Headcount
PhD 8
Master's degree 46
Bachelor’s degree 65
Junior college 14
High school and below 5
Age structure
Item Headcount
30 years old (30 excluded) 41
60 and above 0
c. R&D activities
(a) Product R&D and farming technology development
a-1. Advancing feed R&D through targeted nutrition solutions
For pig feed the Company completed the transition to a dynamic net energy system promoted
low-protein amino acid-balanced diets and low-soybean meal formulations and increased the use of
alternative feed ingredients. These initiatives helped reduce costs improve production efficiency lower
emissions and enhance product quality; for ruminant feed the Company continued to roll out proven
feeding programs for mutton sheep and beef cattle with ongoing improvements in key performance
indicators such as feed conversion ratio and average daily gain. It also provided customized products and
integrated solutions to help customers improve farming returns; for layer feed the Company optimized
product programs based on trial farm results improved data accuracy and enhanced performance in the
late laying period.a-2. Improving efficiency and cost competitiveness in broiler operations
The Company continued to enhance farming performance across its integrated broiler operations with a
focus on key indicators such as feed conversion ratio. It continued to reduce feed costs through
ingredient substitution and formulation optimization while promoting a feeding model that combines
coarse particles with pellets and the application of antibiotic alternatives alongside improvements in gut
health and reductions in mortality and culling rates. The Company also upgraded its processing and
31 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
testing systems to improve feed quality and optimize nutrition programs tailored to different regions. In
parallel it advanced trials of domestic breeds and research on slaughter quality further improving
quality and efficiency across the farming process.a-3. Enhancing swine production through tailored nutrition and digital tools
The swine farming segment established a tiered nutrition system and used digital tools to design
differentiated feeding programs for pigs with varying growth potential and health status. The related
technology was granted a national invention patent. The Company also applied a range of precision
farming technologies which received recognition both internally and from industry. Through tailored
nutrition and intelligent feeding management the Company continued to accumulate farming data
improve resource efficiency reduce grain use and enhance feed conversion efficiency.(b) Major projects undertaken standards drafted awards and patents
Patents Granted in 2025
including: including:
Number of patents invention 1120 patents Number of granted
invention 78
granted in 2025 208 patentsutility model patents held at period end utility model
patents 9 patents 130
National or Group Standards Developed with the Company’s Participation and Scientific Research Projects
Undertaken in 2025
The Company participated in the development of one national standard two industry standards
and one local standard and led the development of one local standard:
Determination of Acid Detergent Lignin (ADL) in Feeds GB/T 20805-2025
Standards developed Feed Ingredient — Rice Protein Powder NY/T 4751-2025
with the Company’s Feed Ingredient —Wheat Gluten NY/T 4752-2025
participation Technical Code of Practice for Mutton Sheep Farming with Reduced Antibiotic Use DB21/T
Technical Code of Practice for Beef Cattle Farming with Reduced Antibiotic Use DB21/T
Sub-project under the National Key R&D Program: Research and Demonstration of Diversified
Diet Formulation Technologies with Low Protein and Low Soybean Meal Levels for Broilers and
Layers
Scientific research Liaoning Provincial Key R&D Program (Innovation Consortium): Research and Demonstration
projects undertaken of Key Technologies for Quality Improvement Efficiency Enhancement and Smart Production
or led Across the White-Feather Broiler Value Chain
Liaoning Provincial Science and Technology Innovation Team Project: Research and Promotion
of Precision Feeding Manure Emission Reduction and Resource Utilization for White-Feather
Broilers
Awards Received for Technology R&D in 2025
First Prize of the Jilin Provincial Science and Technology Progress Award — Innovation and
Application of Precision Nutrition Technologies for Chickens
Second Prize of the Liaoning Provincial Science and Technology Progress Award — Innovation
and Application of Key Technologies for Green Production and Quality Control of White-Feather
Awards received Broilers
Second Prize of the Liaoning Agricultural Science and Technology Contribution Award —
Integration of Key Technologies for Green and Healthy Swine Farming and Demonstration and
Promotion Across the Industry Chain
E. Cash flow
RMB
Item 2025 2024 Year-on-yearchange %
Net cash flow from operating activities 681096407.91 1176900496.53 -42.13
Net cash flow from investing activities -1039555043.82 -448278145.58 -131.90
Net cash flow from financing activities 300305454.76 -877353019.52 134.23
Net increase in cash and cash
equivalents -59309697.21 -146542683.04 59.53
32 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
2. Assets and liabilities
A. Analysis of assets and liabilities
RMB
Item December 31 2025 % of total December 31 2024 % of totalassets assets YoY change % Explanation
Financial assets held for
trading 904884.08 0.01 -100.00
Mainly due to the disposal of shares in listed
companies received in debt settlement
Derivative financial 6473245.85 0.04 2441832.40 0.02 165.10 Mainly due to an increase in unrealized gains fromassets hedging activities.Notes receivable 3301161.04 0.02 27893377.89 0.19 -88.17 Mainly due to the collection of matured notesreceivable
Receivables financing 56826264.52 0.31 9139184.14 0.06 521.79 Mainly due to an increase in notes received during theperiod
Prepayments 376982640.33 2.07 262395498.70 1.76 43.67
Other receivables 127508002.69 0.70 69263268.24 0.47 84.09
Other current assets 193835129.93 1.07 144952159.05 0.97 33.72
Investment properties 222400414.95 1.22 23980919.68 0.16 827.41
Fixed assets 5680220459.27 31.24 4307643182.96 28.94 31.86
Construction in progress 284606615.03 1.57 189068183.70 1.27 50.53
Intangible assets 562658708.42 3.09 393245823.31 2.64 43.08
Goodwill 29876858.44 0.16 19864604.90 0.13 50.40
Other non-current assets 1151511996.81 6.33 552101624.23 3.71 108.57 Mainly arising from the acquisition of equity interestsin associated companies of broiler business
Short-term borrowings 1860677880.49 10.23 567278990.41 3.81 228.00
Financial liabilities held
for trading 7718239.77 0.04
Accounts payable 2197894265.86 12.09 1629553678.79 10.95 34.88
Employee benefits
payable 314143734.86 1.73 240573782.76 1.62 30.58
Other payables 838083095.78 4.61 638629689.02 4.29 31.23
Other current liabilities 10741773.29 0.06 8223061.85 0.06 30.63
Long-term loans 2071414535.29 11.39 1444154268.34 9.70 43.43
Lease liabilities 548934023.10 3.02 420845598.26 2.83 30.44
Long-term payables 30577766.07 0.17 94867723.87 0.64 -67.77 Mainly due to a decrease in finance lease payables
Deferred tax liabilities 5400611.24 0.03 1185667.86 0.01 355.49 Mainly due to growth in leasing business
33 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
B. Overseas assets
Overseas assets amounted to RMB 5.266 million accounting for 0.03% of total assets.C. Restrictions on major assets at the end of the reporting period
As of the end of the reporting period the Company’s total restricted assets amounted to RMB 916.15
million. For details please refer to Note 31 “Assets with restricted ownership or use rights” under VII
“Notes to items in the consolidated financial statements” in Section VIII “Financial Statements”.
3. Investment analysis
As of the end of the reporting period the balance of the Company’s long-term equity investments was
RMB 2068.20 million representing a decrease of 16.75% from the end of the previous year.Investments in other equity instruments amounted to RMB 0.31 million representing an increase of
91.22% from the end of the previous year. For details please refer to Note 17 “Long-term equityinvestments” and Note 18 “Investments in other equity instruments” under VII “Notes to items in theconsolidated financial statements” in Section VIII “Financial Statements”.
(1) Material equity investments
RMB
Whether
the Progress Whether
Name of Principal investee’s Investment Investment Shareholding Whether Source of as of the Impact on involved Disclosure Disclosure
investee business main method amount ratio consolidated funds balance current profit in date (if reference
business is sheet date or loss litigation any)
investment
Anshan
Jiuguhe
Food Feed Own and
Company farming and No Acquisition 1110079141.41 70% Yes self-raised Completed 22292911.18 No February Announcement
and 12 slaughtering funds 26 2025 No.: 2025-011
other
companies
Total / / / 1110079141.41 / / / / 22292911.18 / / /
34 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
4. Major subsidiaries and associated companies
Information on main subsidiaries and associated companies whose impact on the Company's net profit exceeds 10%
RMB 10000
Company Company type Principal business Registered Total Operating Operatingcapital assets Net assets revenue profit Net profit
Beijing Sanyuan Wellhope
Animal Husbandry Subsidiary Feed production and 1000.00 28598.52 22237.21 58178.63 2935.53 2198.99
Company sales
Shenyang Wellhope Animal Feed production and
Husbandry Company Subsidiary sales 8210.00 33128.57 29285.35 88285.92 3199.24 2394.51
Xi'an Wellhope Feed Science Feed production and
and Technology Company Subsidiary sales 500.00 34516.09 29735.67 74202.35 2729.68 2358.55
Anshan Jiuguhe Food
Company Subsidiary
Broiler slaughtering
processing and sales 4320.00 115680.00 60284.84 140293.21 2360.57 2515.96
Dalian Heyuan Animal Feed broiler breeders
Husbandry Company Subsidiary hatching broiler 10000.00 151188.72 53506.39 336157.39 -15094.25 -15231.16farming
Liaoning Wellhope
Agriculture and Animal
Husbandry Development Subsidiary Swine farming 10000.00 104810.28 20862.91 114398.37 -6815.98 -6543.49
Company
Anhui Wellhope Animal Subsidiary Feed production andHusbandry Company sales swine farming 16000.00 35337.45 -17119.43 63832.21 -4819.86 -5055.72
Tai’an Jiuguhe Agriculture
Development Company Subsidiary Broiler farming feed 4370.00 82234.51 -5244.87 211897.91 -2266.93 -2320.81
Shenyang Wellhope Feed production and
Ruminant Feed Company Subsidiary sales 550.00 33541.95 29003.29 59618.61 2838.32 2119.14
Linghai Jiuguhe Feed
Company Subsidiary Broiler farming feed 2655.00 25513.58 7830.41 86324.19 -1050.87 -954.10
Feed broiler breeders
Beipiao Hongfa Food
Company Associated company
hatching broiler
farming and 3000.00 297720.95 190238.80 424353.62 19830.88 20421.05
slaughtering
Dalian Chengsan Food Associated company Broiler farming feed 1008.61 257562.44 157255.49 468209.92 7756.08 7089.32
35 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Group Company
Golden Harvesta Inc.Philippines Associated company
Feed production and PHP 1.5
sales swine farming billion 65821.68 45485.87 49214.28 10322.03 10108.96
Dandong Wellhope
Chengsan Animal Associated company Broiler farming feed 8000.00 82490.18 66259.33 144499.95 5651.58 5637.23
Husbandry Company
Shenyang Zhongwenjie Associated company Vaccine production andBiotechnology Company sales 1000.00 26225.36 5515.36 38931.02 1933.09 1730.13
Acquisition and disposal of subsidiaries during the reporting period
Company name Method of acquisition or disposal ofsubsidiary Impact on overall operations and results
Hebei Taihang Wellhope Feed Company Equity acquisition and capital increase None
Anshan Jiuguhe Food Company and 12 other
companies Equity acquisition None
Qingdao Shenfeng Animal Husbandry Company Equity acquisition None
36 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
VI. Discussion and Analysis on the Company’s Future Development
1. Industry landscape and trendsFor details please refer to the relevant content under “II. Industry Overview during the ReportingPeriod” in Section III “Management Discussion and Analysis” of this report.
2. Development strategy of the Company
Under a centralized group management model the Company will remain committed to strengthening its
two core strategic businesses namely animal feed and integrated broiler operations while pursuing
high-quality development in its two strategic businesses under development namely swine farming and
food business. The Company will also gradually develop regional food brands and strive to become an
enterprise in agriculture livestock and food industries that leads in safety quality cost and efficiency
during 2025–2027.
3. Business plan
2026 will mark the first year of China’s next five-year planning cycle. It is expected to be a challenging
year for the industry marked by strong supply and relatively weak demand while the broader economy
may begin to stabilize and regain momentum. Against this backdrop the Company will continue to
strengthen its core capabilities and improve operating quality. It will also reinforce cash flow
management and risk control while advancing the transformation and upgrading of its principal
businesses.Feed business:
Competition in the feed industry is expected to intensify further in 2026. Differences in core capabilities
among companies are expected to have a more pronounced impact leading to wider performance
divergence and faster industry consolidation. In the feed business the Company will continue to
strengthen product competitiveness shifting from its traditional strength in concentrate feed toward
stronger capabilities in complete feed and premix. It will also enhance its service capabilities moving
from traditional standalone technical support toward more systematic services supported by
coordination across business segments and regional resources. Meanwhile the Company will further
strengthen key account development with its customer structure shifting from a distributor-led model
toward a more balanced model covering distributors direct sales to large-scale farms customized
solutions and contract manufacturing. In 2026 the Company plans to increase external feed sales
volume by 10%–15%.Broiler business:
The broiler industry is expected to remain in the bottoming phase of the cycle in 2026 as capacity
reduction continues. Against this backdrop while continuing to reduce costs and improve efficiency the
Company will further develop high-value sales channels improve pricing broaden revenue sources and
maintain strict control over costs and expenses. In breeder operations the Company will further improve
procedures for screening chick quality and strengthen biosecurity systems to better ensure the quality of
commercial chicks and reduce chick costs. In farming operations the Company will prioritize cost
reduction while pursuing prudent expansion as market conditions allow. In slaughtering operations the
37 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company will improve capacity utilization at existing projects and maintain industry-leading cost and
expense control. On this basis it will continue to develop high-value sales channels and improve product
pricing power. In 2026 the Company targets a total slaughter volume of approximately 1.04 billion
broilers across its subsidiaries and associated companies.Swine business:
In 2026 the swine industry is expected to reach a key inflection point with hog prices potentially
bottoming out amid ongoing capacity reduction. Hog prices may fall to historical lows while
purchased-piglet finishing is expected to face relatively limited pressure. If breeding farms incur deep
losses this may accelerate sow culling and help the industry gradually return to a more balanced
supply-demand position. On the breeding side the Company will continue to keep production scale
under strict control retain high-quality farms strengthen breeding management and improve breeding
stock quality. Underutilized farms will be brought up to full capacity as quickly as possible. The
Company will also upgrade facilities in response to changing industry conditions and further strengthen
its biosecurity system. For finishing operations it will continue to build on its cost advantage and
develop a first-class farming management team. In 2026 the Company targets sales of 2.5–2.7 million
hogs.This business plan does not constitute a performance commitment by the Company to investors.Investors are advised to be fully aware of the related risks.
4. Potential risks
A. Risks of fluctuations in raw material prices
Raw material costs represent the largest component of the cost base of the Company’s feed business.Changes in factors such as output in major producing regions import policies state reserve and subsidy
programs exchange rate movements and logistics costs may all trigger fluctuations in raw material
prices thereby affecting the cost and gross margin of the Company’s feed business. In recent years as
agricultural trade has become increasingly internationalized raw material supply-demand dynamics and
transaction prices have been influenced by market movements across multiple dimensions including
domestic and overseas spot and futures markets. As a result price trends have grown more complex and
price volatility has intensified further complicating the Company’s cost management. In addition
geopolitical and other uncertainties have added complexity to raw material procurement.Mitigation measures
a. The Company has established strategic partnerships with a number of leading domestic and
international raw material suppliers. Through a three-tier procurement model that combines group-level
procurement regional procurement and local procurement the Company has clearly defined
procurement responsibilities and improved procurement efficiency across different levels.b. The Company’s professional and experienced raw material procurement team conducts targeted
forward-looking market research and real-time market monitoring. By combining futures and spot
procurement strategies the Company seeks to mitigate price volatility and reduce procurement costs.c. The Company’s procurement technical production and marketing teams work in close coordination.
38 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
The technical team actively develops lower-cost alternatives that deliver comparable performance to key
raw materials. The production team continues to optimize production processes and equipment
performance. The marketing team provides rolling sales forecasts enabling the procurement team to
adjust purchasing strategies in a timely manner. Through close collaboration complementary capabilities
and information sharing across departments the Company seeks to minimize the impact of raw material
price fluctuations.d. The Company has established a raw material information-sharing mechanism with Royal De Heus
enabling the two parties to exchange timely market information on micro-ingredients additives and
other categories. Currently the two parties have launched joint procurement for raw materials such as
vitamins and amino acids. In the future the scope of joint procurement may be further expanded to
enhance overall bargaining power on the procurement side.B. Risks of fluctuations in livestock and poultry prices
Livestock and poultry farming is inherently cyclical. Due to the time lag in supply adjustments market
prices tend to fluctuate cyclically which inevitably increases the uncertainty of operating results for
industry participants.Mitigation measures
a. Strategy
The Company closely monitors upstream and downstream price trends conducts in-depth market
research and improves its capability to forecast industry cycles enabling timely adjustments to
operational strategies. The Company facilitates resource sharing and operational synergies across its
three principal businesses. In addition each business segment advances capacity deployment in a
planned and phased manner in accordance with business plans and market dynamics mitigating
livestock and poultry price fluctuation risks from a strategic perspective.b. Business operations
The Company’s fully integrated broiler value chain covers broiler breeder farming hatching feed
production commercial broiler farming slaughtering and processing as well as further processing of
prepared and cooked food products. The continuous enhancement of this integrated value chain helps
offset price volatility across different stages substantially smoothing out overall cyclical fluctuations.c. Management
The Company consistently advances standardized production across all stages of operations and
optimizes its management systems. By improving operational efficiency and labor productivity the
Company effectively reduces overall operating costs. Such cost advantages cushion adverse impacts
during industry downturns and enhance profitability when market conditions improve.C. Risks of major animal disease outbreaks
Feed and farming are two of the Company’s core businesses. Disease outbreaks represent one of the
major risks faced by the farming industry. Once an outbreak occurs it may undermine consumer
confidence leading to weaker demand lower production volumes reduced revenue and higher costs. As
the feed business primarily serves downstream farming operations its performance is closely tied to
39 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
conditions in the farming sector. Given their sudden and unpredictable nature major outbreaks could
have a material impact on the Company’s operations.Mitigation measures
a. The Company places strong emphasis on the geographic distribution and operating structure of its
farming operations which is the most direct way to reduce exposure to disease-related risks.b. The Company emphasizes prevention as the first line of defense against animal diseases. It continues
to improve early-warning mechanism for major diseases and has established biosecurity testing centers
in all regions where it conducts farming operations. Testing frequency and coverage are adjusted based
on seasonal factors regional characteristics and local disease trends with the aim of containing potential
outbreaks at an early stage.c. In the event of a disease outbreak a rapid response is critical to limiting potential losses. The
Company has therefore established an emergency response mechanism for major disease outbreaks to
minimize their impact.d. The Company continues to review and analyze disease cases and keeps strengthening prevention
capabilities from multiple perspectives including animal nutrition and veterinary services.e. For African Swine Fever the Company has developed a relatively comprehensive response system
covering the full process from R&D through to farming operations.D. Risk of industry restructuring driven by environmental policies
In recent years the Chinese government has introduced a series of environmental laws regulations and
policy measures including the revised Environmental Protection Law the Environmental Protection Tax
Law the Regulations on the Prevention and Control of Pollution from Large-scale Livestock and Poultry
Farming and the Action Plan for Tackling Agricultural and Rural Pollution. These measures reflect the
government’s continued focus on strengthening environmental regulation in the livestock industry.Increasingly stringent environmental oversight has become an industry trend and an unavoidable reality
for companies across the sector.Mitigation measures
Since its founding the Company has incorporated “saving resources and protecting the environment”
into its mission statement and has consistently treated this principle as an important corporate
responsibility. The Company also includes legal compliance and the implementation of environmental
requirements as key performance assessment criteria for both subsidiaries and managers.a. Farming and slaughtering operations
In response to increasingly stringent environmental requirements the Company’s farms and
slaughterhouses have identified potential environmental risks and developed emergency plans for
environmental incidents based on their operating conditions and local regulatory requirements helping
ensure stable production and operations. For sites classified as key pollutant dischargers the Company
has put in place self-monitoring plans to promptly identify and address issues and eliminate potential
risks. It also continues to increase the allocation of personnel and financial resources to environmental
protection work to ensure ongoing compliance with national standards.
40 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
b. Feed production
The Company strictly implements national environmental standards and has established comprehensive
management measures for air emissions noise wastewater solid waste and other pollutants generated
during production. At the same time the Company uses eco-friendly raw materials and additives in feed
formulations and continues to develop safe and low-emission diets to reduce emissions of heavy metals
nitrogen and phosphorus.E. Risks of exchange rate fluctuations
The Company’s international business started relatively early and has expanded rapidly over the years.Its raw material procurement product exports and overseas investments are significantly exposed to
exchange rate fluctuations. Specifically as global sourcing has become common practice in the feed
industry exchange rate risk is particularly pronounced for raw materials primarily sourced from overseas
suppliers. In addition the Company’s growing broiler export business serves customers across multiple
countries and regions and involves settlement in multiple currencies making exchange rate fluctuations
unavoidable. Furthermore given the relatively large scale of the Company’s overseas investments and
operations its cross-border fund flows and settlements are also affected by exchange rate movements.Mitigation measures
a. The Company closely tracks developments in the global foreign exchange market strengthens risk
awareness and continuously improves its ability to analyze and forecast market trends.b. The Company enhances its bargaining power in foreign trade by improving product competitiveness.It also mitigates exchange rate risk through RMB settlement value-protection clauses and contractual
arrangements for sharing exchange rate risk.c. The Company uses foreign exchange forwards swaps options and option combinations where
appropriate to hedge foreign exchange exposure.d. Based on the specific circumstances of each country the Company matches foreign-currency inflows
with foreign-currency uses where appropriate and reasonably matches revenues with debt obligations to
control exchange rate risk.F. Risks of food safety
In recent years several food safety incidents have affected consumer confidence in food safety. The
government has continued to improve legislation on food safety and food traceability while imposing
stricter penalties for violations. If a food safety incident occurs due to inadequate quality control it could
undermine consumer confidence significantly weaken downstream demand and have a material adverse
impact on the Company’s brand reputation and operating results.Mitigation measures
Since its founding food safety and product quality have remained a top priority for the Company.Wellhope strictly follows its “Six Nevers” quality policy: never accept unqualified raw materials never
use defective or non-compliant equipment never allow non-standard operations never produce
substandard products never ignore dissatisfied customers and never tolerate inadequate service. At the
headquarters level the Company has established a Food Safety and Quality Management Committee
41 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
with corresponding working groups set up by relevant business segments and subsidiaries. Clear
responsibilities are assigned at each stage to ensure a high level of accountability and vigilance
throughout the organization.a. Feed business
The Company operates a three-tier quality management and testing system across its headquarters
regional operations and subsidiaries. Its feed business is managed in accordance with international
standards such as ISO 9001 ISO 22000 and ISO/IEC 17025 and applicable quality requirements issued
by the Ministry of Agriculture and Rural Affairs such as the Feed Quality and Safety Management Code
and the Veterinary Drug Production Quality Management Code. The Company applies quality control
throughout the production process and maintains a product traceability system. To further strengthen
testing capabilities the Company has promoted the use of near-infrared testing technology to improve
testing efficiency enable timely data sharing and support rapid risk alerts with a focus on testing and
monitoring heavy metals harmful microorganisms and mycotoxins to provide important assurance for
feed product safety.b. Farming and slaughtering business
In production management the Company maintains strict control over veterinary drug selection and
residue management in broiler and swine farming. In slaughtering and processing it continues to
strengthen quality management and strictly implements inspection quarantine and veterinary drug
residue testing. From a business model perspective the Company’s broiler business has built an
integrated value chain covering broiler breeder farming hatching feed production commercial broiler
farming broiler slaughtering and processing and further processing of prepared products and cooked
foods. This integrated operating model ensures a stable supply of raw materials at each stage and enables
strict control over food safety and product quality from the source and throughout the process. Through
standardized management and process-based operations the Company integrates biosecurity residue
control and processing hygiene ultimately achieving food safety traceability.
42 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Section IV Corporate Governance Environmental Protection and Social Responsibility
I. Corporate Governance
The Company strictly complies with the Company Law the Securities Law the Code of Corporate
Governance for Listed Companies the Shanghai Stock Exchange Stock Listing Rules and other
applicable laws regulations and regulatory documents while continuing to strengthen corporate
governance standardize operations and improve its mechanisms for decision-making execution and
supervision. The responsibilities of the Shareholders’ Meeting the Board of Directors and management
are clearly defined with each performing its respective duties. The Company’s governance framework
provides effective checks and balances while supporting sound coordination among its governance
bodies. Independent directors and Board committees draw on their professional expertise perform their
duties with diligence and integrity and provide objective and independent opinions on matters submitted
for review. These arrangements help ensure that the Company operates in compliance with laws and
regulations and in a fair and transparent manner. Directors and senior management play a central role in
the Company’s governance and bear key responsibilities in this regard. They continue to support
improvements in the governance structure enhance governance transparency and safeguard the lawful
rights and interests of the Company and all shareholders.During the reporting period in accordance with applicable laws and regulations the Company revised
several governance documents and internal management rules including the Articles of Association the
Rules of Procedure for the Shareholders’ Meeting and the Rules of Procedure for Board of Directors.The Company also convened meetings as required including five Shareholders’ Meetings six Board
meetings three Audit Committee meetings one Compensation and Appraisal Committee meeting one
Strategy Committee meeting and three special meetings of independent directors. All meetings were
duly convened and held and all voting procedures were conducted in accordance with applicable rules
and were lawful and valid. In addition the Company continued to enhance information disclosure
promote standardized operations and strengthen investor relations management thereby improving the
transparency of corporate information protecting investors’ right to information and safeguarding the
legitimate rights and interests of the Company and all shareholders. Since its listing in 2014 the
Company has not been subject to regulatory criticism public censure or penalties for any violation
related to information disclosure.
43 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
II. Directors and Senior Management
1. Shareholding changes and compensation of current and outgoing directors and senior management during the reporting period
Pre-tax Whether
Shares held at Changes in
compensation compensation
Name Position Gender Age Term start Term end beginning of Shares held at shareholding Reason for
received from the
date date end of the year during the change Company during
was received
the year the reporting from relatedyear period parties of the
(RMB 10000) Company
Jin Weidong Chairman Male 62 Feb. 3 2015 Feb. 1 2027 149549498 149549498 80.00 No
Qiu Jiahui DirectorPresident Male 54 Feb. 1 2021 Feb. 1 2027 78.00 No
Jacobus
Johannes de Director Male 57 Feb. 3 2015 Feb. 1 2027 No
Heus
Shao Caimei Director Female 60 Feb. 3 2015 Feb. 1 2027 49773878 41773878 -8000000 Sharereduction 74.00 No
Director Feb. 3 2015 Feb. 1 2027
Zhao Xin Female 54 4420160 4420160 74.00 No
Vice President Feb. 1 2024 Feb. 1 2027
Director Feb. 1 2024 Feb. 1 2027
Chen Yu Board Secretary Male 41 Apr. 2 2024 Feb. 1 2027 66.00 No
Chief Financial Aug. 12
Officer 2022 Feb. 1 2027
ZUO XIAOLEI IndependentDirector Female 72 Feb. 1 2021 Feb. 1 2027 10.00 No
Jiang Yan IndependentDirector Female 52 Feb. 1 2021 Feb. 1 2027 10.00 No
Zhang Shuyi IndependentDirector Male 61 Feb. 1 2021 Feb. 1 2027 10.00 No
44 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Jin Ge Vice President Male 36 Feb. 1 2024 Feb. 1 2027 73.00 No
Total / / / / / 203743536 195743536 -8000000 / 475.00 /
Name Work experience
Male born in 1963 Chinese nationality. He holds a bachelor’s degree in Veterinary Medicine from Shenyang Agricultural University and a master’s degree in Physiology and
Biochemistry from Jilin University (formerly the People’s Liberation Army Veterinary University). He is a professor-level senior agronomist a doctoral supervisor and one of
the first principal investigators of projects funded by the National Natural Science Foundation of China. Mr. Jin is the core founder of Wellhope and has served as Chairman of
the Company since its founding in 1995. After completing his postgraduate studies he taught at the university for two years. In 1991 he began his business career. He
previously served as Northeast China Regional Sales Manager National Sales Manager and Assistant to the Asia Regional President at Continental Grain Company. He
currently serves as President of Liaoning General Chamber of Entrepreneurs President of Liaoning Feed Association and President of Haicheng Chamber of Commerce under
Jin Weidong Shenyang General Chamber of Commerce. Over the years he has served as an MBA admissions interviewer and class advisor for MBA programs at Peking University and
Tsinghua University and as a visiting professor at Renmin University of China Ocean University of China Northeast Agricultural University and other higher education
institutions. He has received numerous honors including Outstanding Private Science and Technology Entrepreneur of China National Outstanding Builder of the Cause of
Socialism with Chinese Characteristics Top 10 Economic Figures in China’s Feed Industry over 30 Years of Reform and Opening-up Shenyang May Day Labor Medal
Liaoning Province Model Worker National Model Worker CCTV Top 10 Models for Entrepreneurship and Prosperity in Agriculture Rural Areas and Farmers Outstanding
Entrepreneur of Liaoning Province Science and Technology Innovation and Entrepreneurship Talent (Ministry of Science and Technology) and Leading Talent in
Technological Entrepreneurship under the fourth batch of the National Ten Thousand Talents Program.Male born in 1972 Chinese nationality. He holds a bachelor’s degree in Veterinary Medicine from Shenyang Agricultural University and is an associate senior agronomist.After graduation he worked at Dalian Broiler Breeder Farm a key state-owned breeding enterprise where he was engaged in technical work and on-site management. He
joined Wellhope in 2000 as a sales representative and was rapidly promoted due to his outstanding capabilities. He has successively served as General Manager of Haicheng
Wellhope and Haicheng Xinzhongxin Vice President of the former Huakang Group Marketing Director of Wellhope President of the Company’s broiler business segment
and Vice President of Wellhope. He currently serves as Director and President of the Company. He also holds several social positions including Vice Chairman of the China
Qiu Jiahui Feed Industry Association Vice Chairman of the China Animal Agriculture Association President of Liaoning Animal Husbandry Association Business Environment
Supervisor of Liaoning Province Vice Chairman of Liaoning Chinese and Foreign Entrepreneurs Club member of the 9th Liaoning Provincial Agricultural Committee
President of Liaoning White-feather Broiler Association member of the 9th Council of Shenyang Red Cross Society and visiting professor at the College of Animal Science
and Technology and the College of Veterinary Medicine of Shenyang Agricultural University. His honors include the First Prize of the National Harvest Award for Agriculture
Animal Husbandry and Fisheries (Principal Contributor) the May Day Labor Medal of Shenbei New District and the title of Shenyang Outstanding Expert (Eighth Batch).Mr. Qiu pioneered Wellhope’s broiler business and over more than a decade has led the team to achieve rapid growth and a leading market position.Jacobus Johannes de Male born in 1969 Dutch national. He holds a master’s degree in Economics from the University of Groningen the Netherlands. He has been with Royal De Heus of the
Heus Netherlands since 1992 and currently serves as Chairman of the Board of Royal De Heus and Director of Wellhope.Female born in 1966 Chinese nationality. She holds a PhD in Animal Physiology and Biochemistry from Nanjing Agricultural University and is a professor-level senior
agronomist. She is one of the co-founders of Wellhope. She previously worked as a technician at China Huamu Poultry Breeding Center under the Ministry of Agriculture and
Rural Affairs and as Technical Formulation Manager at Conti (Beijing) Feed Additive Company under Continental Grain Company. Since the founding of Wellhope she has
Shao Caimei long served as the Company’s principal technical leader and has successively served as Director and Vice President. She currently serves as Director and Chief TechnologyOfficer of the Company. She also holds several professional and academic positions including Standing Council Member of the Animal Nutrition Branch of the Chinese
Association of Animal Science and Veterinary Medicine member of the National Technical Committee for Feed Industry Standardization and Head of the Comprehensive
Experiment Station for the Swine Industry under the National Modern Agricultural Industry Technology System. She has also served as an industry-based master’s supervisor
in animal nutrition at China Agricultural University a master’s supervisor in animal nutrition and feed processing at Shenyang Agricultural University and a visiting professor
45 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
at Ocean University of China Shenyang Agricultural University and Nanjing Agricultural University. She has received multiple first and second prizes for provincial- and
ministerial-level scientific and technological progress awards and has obtained nearly 40 national invention patents. In 2022 she was listed in the Forbes China Top 50
Women in Tech and in 2023 she was awarded the title of Shenyang Outstanding Expert (Eighth Batch).Female born in 1972 Chinese nationality. She holds a bachelor’s degree in Economics from Shenyang Agricultural University. She joined Wellhope immediately after
graduating from university in 1995 and has successively served as Administrative Assistant Head of the Marketing Department Head of the Human Resources Department
Human Resources Manager Human Resources Director Assistant to the Chairman and Board Secretary. She currently serves as Director Vice President and Chief Human
Zhao Xin Resources Officer of the Company. She also serves as Vice President of the Liaoning New Social Strata Association. Ms. Zhao has over 30 years of experience in human
resources and corporate management and is one of the key contributors to the development of Wellhope’s human resources management system. She was honored as
Outstanding Board Secretary in the China Listed Companies Value Selection in 2020 and 2021 and was awarded the Golden Bull Board Secretary Award by China Securities
Journal in 2021 2022 and 2023.Male born in 1984 Chinese nationality. He holds a master’s degree from Shanghai University of Finance and Economics and is a Certified Public Accountant. From
Chen Yu September 2009 to January 2017 he worked at KPMG Huazhen LLP where he successively served as Auditor and Audit Manager. From January 2017 to May 2019 heworked at New Northeast Electric Group where he was responsible for financial management. From May 2019 to November 2021 he served as Chief Financial Officer of
Anhui Hetian Hospital Management Co. Ltd. He currently serves as Director Board Secretary and Chief Financial Officer of the Company.Female born in 1953 Singaporean nationality. She is a renowned economist and holds a PhD in International Finance and Econometrics from the University of Illinois USA.She previously served as Lecturer in the Department of Economic Statistics at the National University of Singapore Associate Professor at the Asian Institute of Management
ZUO XIAOLEI in the Philippines Chief Economist and Chief Advisor to the President at China Galaxy Securities Independent Director of Tongfang Co. Ltd. Independent Director of HubeiBank Special Research Fellow at the Counsellors’ Office of the State Council and Research Fellow at the Financial Research Center of the Counsellors’ Office of the State
Council. She currently serves as Independent Director of Wellhope. Ms. Zuo is one of China’s most influential economists. She has published numerous papers and articles in
econometrics international finance and securities markets and is the author of Xiaolei’s Perspective: My View on China’s Economy.Female born in 1973 Chinese nationality. She holds a PhD in Management from the Research Institute for Fiscal Science Ministry of Finance and is a Certified Public
Jiang Yan Accountant and Certified Asset Appraiser. From 2002 to 2016 she worked in the Department of Public Offering Supervision of the China Securities Regulatory Commission.She currently serves as Independent Director of Weichai Power Co. Ltd. and Independent Director of Wellhope.Male born in 1964 Chinese nationality. He holds a PhD in Ecology from Pierre and Marie Curie University France and is a grade II professor and doctoral supervisor. He
previously served as Research Fellow at the Institute of Zoology Chinese Academy of Sciences Dean of the Interdisciplinary Institute of Science and Technology at East
China Normal University and Dean of the School of Management at Zhejiang Ocean University. He currently serves as professor at the College of Animal Science and
Veterinary Medicine Shenyang Agricultural University and Independent Director of Wellhope. Beyond academic and scientific work he has also served as Director of the
Zhang Shuyi Investment and Project Selection Division of China High-Tech Investment Corporation Vice President of Tiansanqi Group Co. Ltd. (Beijing) and legal representative ofZhejiang Zhongke Marine Biotechnology Company. Mr. Zhang has achieved outstanding accomplishments in scientific research. He has been awarded the National Science
Fund for Distinguished Young Scholars and supported by the Changjiang Scholars Team Program of the Ministry of Education. He has been selected for the First and Second
Levels of the National Hundred Thousand and Ten Thousand Talents Project the Hundred Talents Program of the Chinese Academy of Sciences and the Climbing Scholar
Program of Liaoning Provincial Higher Education Institutions. He has received the Special Government Allowance of the State Council the Second Prize of the National
Science and Technology Progress Award and the First Prize of the Shanghai Natural Science Award.Male born in 1989 Chinese nationality. He holds a bachelor’s degree in Veterinary Medicine from Nanjing Agricultural University and a master’s degree in Veterinary
Science from the University of Liverpool UK. He joined Wellhope upon graduation in 2014 and has successively served as Project Manager General Manager Director and
Assistant President in the Company’s international business and broiler integration segment. In recognition of his outstanding performance he was promoted to Vice President
Jin Ge of the Company in February 2024 responsible for the ruminant feed and premix businesses which are strategic businesses under the feed segment. He also holds multiplesocial positions including Deputy to the Shenyang Municipal People’s Congress Vice Chairman of the Youth Committee of the Shenyang Western Returned Scholars
Association Executive Council Member of the Liaoning Young Entrepreneurs Association and Deputy Director of the Youth Entrepreneurship Committee of the Liaoning
General Chamber of Entrepreneurs. He was awarded Model Worker of Shenbei New District in 2022 the Shenyang May Fourth Youth Medal in 2024 and the Shenyang May
Day Labor Medal in 2025.
46 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
2. Positions held by current and outgoing directors and senior management during the reporting
period
-Position held in other entities
Name Name of other entity Position Term start Term enddate date
Professor at the
Zhang Shuyi Shenyang Agricultural
College of
University Animal Science 2016and Veterinary
Medicine
Zhang Shuyi Wuxi Kezhiqian ExecutiveTechnology Company director 2012
Zhang Shuyi Liaoning PetmateBiotechnology Company Director 2016
Jiang Yan Weichai Power Co. Ltd. Independentdirector 2020
Jacobus Johannes de Royal De Heus Company Chairman of the
Heus of the Netherlands Board 2025
Changzhou Sangdichuan
Jin Weidong Agricultural Development Executive 2021
Company director
Jin Weidong Liaoning GuoweiIndustrial Group Company Director 2021
3. Compensation of directors and senior management
Directors’ compensation is reviewed and determined by the
Decision-making procedure for Shareholders’ Meeting while the compensation of senior
compensation management is reviewed and determined by the Board of
Directors.Whether directors abstain from
voting when their own
compensation is discussed by the Yes
Board
Specific recommendations by the
Compensation and Appraisal The Compensation and Appraisal Committee convened a meeting
Committee or special meeting of to review the determination of compensation for directors and
independent directors on senior management for 2025 and the compensation plan for 2026
compensation of directors and and submitted the matter to the Board of Directors.senior management
Compensation is determined with reference to industry
compensation levels the Company’s operating performance and
Basis for determining compensation position-specific responsibilities as well as qualitative and
of directors and senior management quantitative indicators such as the work plan formulated at the
beginning of the year and individual performance against that
plan.Compensation is reasonably paid based on a comprehensive
Actual payment of compensation to assessment of the Company’s annual performance the fulfillment
directors and senior management of duties by managers management capabilities and other
relevant factors.Total compensation actually
received by all directors and senior As of the end of the reporting period the total compensation
management at the end of the actually received by all directors and senior management was
reporting period RMB 4.75 million.Performance assessment for After the end of each accounting year the Board of Directors
compensation paid to directors and conducts annual performance assessments of directors and senior
47 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
senior management management. As of the end of the reporting period these
assessments had been carried out in accordance with the
Company’s relevant performance assessment rules. The
independent director allowance is not subject to such assessment
rules.
4. Changes in directors and senior management
Not applicable
III. Directors’ Performance of Duties
1. Attendance of directors at board meetings and shareholders’meetings
Attendance as Board Meetings Shareholders’Meeting
Independent Meetings Whether
Name director required absent from Number of
(yes or no) to attend Attended Attended By two Shareholders’
during the in person remotely proxy
Absent consecutive Meetings
year meetings in attendedperson
Jin Weidong No 6 6 5 No 5
Qiu Jiahui No 6 6 3 No 5
Jacobus
Johannes de No 6 6 6 No 0
Heus
Shao Caimei No 6 6 5 No 5
Zhao Xin No 6 6 2 No 5
Chen Yu No 6 6 2 No 5
ZUO XIAOLEI Yes 6 6 6 No 5
Jiang Yan Yes 6 6 6 No 5
Zhang Shuyi Yes 6 6 6 No 5
Number of board meetings held during the year 6
Including: On-site meeting 0
Meetings held by remote communication means 2
Meetings held on-site and by remote communication
means 4
IV. Committees under the Board of Directors
1. Composition of specialized committees
Committee Member
Audit Committee Jiang Yan(Chairperson) ZUO XIAOLEI Shao Caimei
Nomination Committee ZUO XIAOLEI(Chairperson) Zhang Shuyi Shao Caimei
Compensation and Appraisal Committee Zhang Shuyi(Chairperson) Jiang Yan Zhao Xin
Strategy Committee Jin Weidong(Chairperson) Jacobus Johannes de HeusQiu Jiahui Chen Yu ZUO XIAOLEI
2. The Strategy Committee held one meeting during the reporting period
Date Proposal Important commentsand suggestions Other circumstances
Deliberating proposal
on acquiring part of the
equity interest in The proposal was
February 24 2025 associated companies approved and None
in the broiler business submitted to the Board
and obtaining control of Directors
over these companies
48 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
3. The Compensation and Appraisal Committee held one meeting during the reporting period
Date Proposal Important commentsand suggestions Other circumstances
Deliberating proposal
on the Company’s 2024 The proposal was
April 21 2025 compensation plan for approved and None
directors and senior submitted to the Board
management of Directors
4. The Audit Committee held three meetings during the reporting period
Date Proposal Important commentsand suggestions Other circumstances
Deliberating 2024
annual report 2025
first quarter report the These proposals were
April 21 2025 reappointment of the approved and
audit firm and 2024 submitted to the Board
None
internal control of Directors
evaluation report
The proposal was
August 13 2025 Deliberating 2025 approved andinterim report submitted to the Board None
of Directors
The proposal was
October 27 2025 Deliberating 2025 third approved andquarter report submitted to the Board None
of Directors
V. Employees of the Parent Company and Major Subsidiaries
1. Headcount
Employees of parent company 299
Employees of major subsidiaries 11459
Total number of employees 11758
Number of retired employees whose expenses are borne
by the parent company and major subsidiaries 26
Functions
Line Employees
Production 6388
Sales 2744
Technical 777
Finance 558
Administration 1291
Total 11758
Educational backgrounds
Category Employees
Master's degree and above 458
Bachelor's degree 2863
Junior college 2866
Below junior college 5571
Total 11758
2. Compensation policy
Wellhope adheres to a human resources philosophy that rewards performance promotes merit-based
49 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
advancement and upholds fairness and impartiality. Guided by this philosophy the Company has
developed a comprehensive compensation and performance management system covering compensation
policies appointment and promotion management incentive mechanisms employee benefits as well as
training and development. Designed to be fair motivating and competitive the system closely links
employee compensation with both organizational results and individual performance. The Company
determines compensation levels based on its operating results and individual performance evaluations
helping to sustain employee motivation and align employees’ personal growth with the Company’s
long-term development.In 2025 while continuing to advance comprehensive performance management Wellhope further
strengthened performance tracking and process management. By continuing to hold three-tier meetings
the Company used performance rankings at different levels to support both positive and negative
incentives rewarding high performers and addressing underperformance while identifying and
promoting benchmark practices across business segments. In the feed business the Company continued
to apply a compensation pool model enabling higher-output business units to receive greater incentives
while piloting additional rewards for strategic businesses such as ruminant feed when they exceeded
targets. In the broiler business the Company implemented targeted incentive schemes for key roles. In
the swine farming business it explored cost-saving incentives by linking performance indicators more
closely to individual accountability. At the same time the Company made incentive mechanisms for
managers more flexible with adjustments based on value creation outcomes. In addition the Company
continued to refine its Appointment Management Measures creating development opportunities for
outstanding managers through a more structured appointment process and targeted incentive tools while
strengthening measures for underperforming managers including demotion salary reduction warning
interviews and coaching. The Company also continued to carry out special commendations for strategic
businesses and through team-building activities and on-site award ceremonies promoted talent
exchange across regions and business segments enhanced employees’ sense of honor and supported
their career development and personal growth.The Company provides employees with compensation and benefits that are competitive within both the
industry and the regions in which it operates. In accordance with relevant laws and regulations the
Company makes statutory social insurance and housing provident fund contributions for employees. It
also offers supplementary benefits such as commercial insurance and annual health check-ups with
certain benefits extended to employees’ family members. In addition the Company has continued to
enrich its employee welfare system through various initiatives including the “Wings of Love”
Foundation to promote the sharing of internal resources and enhance overall employee satisfaction.
3. Training plan
During the reporting period the Company promoted its training programs in line with overall strategy
and human resources development objectives. The programs focused on supporting business operations
and developing key talent helping employees build the capabilities required for business execution and
career growth. By aligning training more closely with business priorities the Company strengthened the
50 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
connection between talent development and operational performance.A. Using targeted training to support business execution: The Company continued to strengthen the role
of training in supporting day-to-day operations and business execution. Training programs were
designed around practical business needs helping teams build capabilities share experience and
improve execution. In the contract manufacturing business the Company organized knowledge-sharing
sessions performance benchmarking activities and video briefings to accelerate the establishment of
contract manufacturing organizational structures across regions strengthen employees’ awareness of
production capacity and align efforts around business development. The Company also supported the
rollout of large-scale farm operations with focused research and follow-up on key products. During the
year the Company delivered more than 80 specialized training programs covering contract
manufacturing large-scale farm operations production operations farming operations mid-level and
front-line management and support functions. These programs enhanced employees’ job-specific
capabilities and helped improve organizational effectiveness and productivity.B. Turning best practices into organization-wide capability: The Company focused its training resources
on strategic priorities and practical business challenges. It identified best-practice cases in contract
manufacturing large-scale farm development contract farming operations and legal affairs distilled
replicable experience from these cases and shared it across the organization through targeted training
programs. These efforts helped employees apply proven experience in their daily work and turn training
outcomes into practical capabilities. The Company also responded proactively to advances in AI. It
expanded training on AI fundamentals and practical tool applications encouraging employees to use AI
more effectively in daily work to improve efficiency. During the year the Company’s training programs
recorded more than 15000 participant attendances covering all core positions and providing focused
support to key personnel.C. Developing critical talent to support long-term growth: The Company continued to refine its talent
development system providing more targeted training and development support for employees at
different career stages. For new employees it introduced targeted onboarding programs and
milestone-based tracking to help them become ready for their roles more quickly and build a solid
foundation for continued growth. For critical talent groups including newly appointed general managers
newly promoted managers and high-potential management talent the Company developed tailored
training programs that combined capability building with practical assignments. These initiatives helped
strengthen the Company’s management pipeline and provide reliable talent support for its long-term
healthy development.VI. Profit Distribution or Proposed Conversion of Capital Reserve into Share Capital
1. Formulation implementation and adjustment of the cash dividend policy
The Company takes into account its long-term and sustainable development when formulating profit
distribution policy. Based on a comprehensive assessment of actual operating conditions shareholders’
expectations prevailing funding costs and the external financing environment the Company also
considers factors such as current and expected future profitability cash flow position stage of
51 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
development funding requirements for project investments and conditions for securities issuance as
well as bank credit and debt financing. Accordingly the Company has put in place a dividend policy
designed to provide sustainable and stable returns to investors while ensuring the continuity and
stability in profit distribution. During the reporting period there was no change in the Company’s profit
distribution policy.As audited by RSM China the undistributed profit of the parent company as of December 31 2025 was
RMB 2870791597.13 and the net profit attributable to shareholders of the Company for 2025 was
RMB 52516855.05. In accordance with the Company Law and the Articles of Association where the
accumulated statutory reserve has reached 50% or more of the registered capital no further
appropriation is required. As of the end of 2025 the Company’s statutory reserve represented 52.02% of
its registered capital; therefore no appropriation to the statutory surplus reserve will be made for the
year.Under the 2025 profit distribution plan approved by resolution of the Board the Company will not
distribute cash dividends issue bonus shares or convert capital reserve into share capital and the
undistributed profits will be carried forward to the following year. Pursuant to the Rules for Share
Repurchases by Listed Companies issued by the China Securities Regulatory Commission share
repurchases by a listed company for cash consideration by way of tender offer or centralized bidding
shall be deemed to be cash dividends of the listed company and included in the calculation of the
relevant cash dividend payout ratios. During the year the Company repurchased shares through
centralized bidding for cash consideration of RMB 56466476.00 accounting for 107.52% of the net
profit attributable to shareholders of the Company for the year. Separately the cash consideration paid
for shares repurchased through centralized bidding and subsequently cancelled during the year amounted
to RMB 66391605.70 representing 126.42% of the net profit attributable to shareholders of the
Company for the year.The proposed profit distribution plan is subject to approval by the Shareholders’Meeting.
2. Special statement on the cash dividend policy
Whether it complies with the Articles of Association or the requirements of resolutions Yes
of Shareholders’Meeting
Whether the dividend standards and payout ratios are clear and specific Yes
Whether the relevant decision-making procedures and mechanisms are sound Yes
Whether the independent directors have duly performed their duties and played their Yes
due role
Whether minority shareholders have been given sufficient opportunities to express
their views and concerns and whether their legitimate rights and interests have been Yes
fully protected
3. Reasons for not proposing a cash dividend plan despite profitability during the reporting
period and positive parent-company distributable profit
Reasons for not proposing a cash dividend plan despite
profitability during the reporting period and positive Use and plan for undistributed profit
parent-company distributable profit
52 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Pursuant to the Rules for Share Repurchases by Listed
Companies issued by the China Securities Regulatory
Commission share repurchases by a listed company for
cash consideration by way of tender offer or centralized
bidding shall be deemed to be cash dividends of the
listed company and included in the calculation of the The undistributed profit will be retained to
relevant cash dividend payout ratios. During the year support the development of the Company’s
the Company repurchased shares through centralized principal businesses.bidding for cash consideration of RMB 56466476.00
and the cash consideration paid for shares repurchased
and subsequently cancelled during the year amounted
to RMB 66391605.70.
4. Cash dividend distribution over the last three fiscal years
RMB
Cumulative cash dividends for the most recent three
fiscal years (tax inclusive) (1) 50215141.46
Cumulative amount of shares repurchased and
cancelled for the most recent three fiscal years (2) 66391605.70
Cumulative amount of cash dividends and shares
repurchased and cancelled for the most recent three 116606747.16
fiscal years (3)=(1)+(2)
Average annual net profit for the most recent three
fiscal years (4) -20684184.70
Cash dividend payout ratio for the most recent three
fiscal years (%) (5)=(3)/(4) N/A
Net profit attributable to ordinary shareholders of the
listed company in the consolidated financial statements 52516855.05
for the most recent fiscal year
Undistributed profit in the parent company’s financial
statement at the end of the most recent fiscal year 2870791597.13
VII. Equity Incentive Plan Employee Stock Ownership Plan or Other Employee Incentive Measures
and Their Impact
1. Employee stock ownership plan
On May 7 2024 the Company convened the 4th meeting of the 8th Board of Directors and on May 23
2024 it convened the second extraordinary Shareholders’ Meeting of 2024. At these meetings relevant
proposals were approved including the Proposal on the Company’s 2024 Employee Stock Ownership
Plan (Draft) and Its Summary and the Proposal on the Administrative Measures for the Company’s 2024
Employee Stock Ownership Plan. For details please refer to the relevant announcements disclosed by
the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on May 8 and May 24
2024. A total of 426 employees participated in the subscription under the 2024 Employee Stock
Ownership Plan contributing RMB 72.10 million to subscribe for 14.00 million shares held in the
Company’s dedicated securities account for share repurchases.On August 22 2024 the Company received the Confirmation of Transfer Registration issued by the
Shanghai Branch of China Securities Depository and Clearing Corporation Limited. The 14.00 million
shares held in the Company’s dedicated securities account for share repurchases were transferred to the
securities account of the Company’s 2024 Employee Stock Ownership Plan by way of non-trading
53 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
transfer on August 21 2024 at a transfer price of RMB 5.15 per share.On October 28 2025 the Company convened the 14th meeting of the 8th Board of Directors at which
the Proposal on the Repurchase and Cancellation of Certain Shares under the 2024 Employee Stock
Ownership Plan was approved. The Board approved the repurchase and cancellation of 4.20 million
shares that did not satisfy the unlocking conditions for the first unlocking period under the Employee
Stock Ownership Plan. For details please refer to the announcement disclosed by the Company on the
website of the Shanghai Stock Exchange (www.sse.com.cn) on October 30 2025. On November 14
2025 the Company convened the fourth extraordinary Shareholders’ Meeting of 2025 at which the
above proposal was approved.
2. Evaluation of senior management and incentive arrangements during the reporting period
During the reporting period the Company evaluated its senior management primarily based on the
Company’s overall operating performance and the performance of the businesses or regions under their
respective responsibilities. Their compensation was determined with reference to industry conditions
regional income levels the Company’s actual operating results and their individual performance.VIII. Development and Implementation of the Internal Control System during the Reporting Period
The Company disclosed its Internal Control Evaluation Report concurrently with the disclosure of its
2025 Annual Report. For details please refer to the website of the Shanghai Stock Exchange
(http://www.sse.com.cn).IX. Management and Control over Subsidiaries during the Reporting Period
During the reporting period the Company exercised internal control and management over its
subsidiaries in strict compliance with the Company Law the Securities Law the Listing Rules of the
Shanghai Stock Exchange other applicable laws regulations and regulatory documents as well as the
Articles of Association. The Company strengthened risk management over its subsidiaries through
measures covering standardized operations personnel management financial management internal
audit information disclosure investment and financing management and operating performance
evaluation. Each subsidiary implemented the Company’s rules and policies on a unified basis and
formulated their own business plans and risk management procedures in line with the Company’s overall
development strategy and annual operating plan. Meanwhile each subsidiary strictly complied with the
reporting and approval procedures for material matters promptly reporting significant business and
financial matters to the responsible Company executives and where required under the relevant
authorization provisions submitting such matters to the Board of Directors or the Shareholders’ Meeting
for consideration. During the reporting period the Company identified no material deficiencies in the
management of its subsidiaries. Internal control over subsidiaries was effectively implemented and
operated properly in practice.X. Explanation of Audit Report for Internal Control
RSM China the Company’s internal control auditor issued the Internal Control Audit Report stating
that as of December 31 2025 the Company maintained effective internal control over financial
reporting in all material respects in accordance with the Basic Standards for Enterprise Internal Control
54 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
and relevant regulations. For details please refer to the website of the Shanghai Stock Exchange
(http://www.sse.com.cn).Whether an internal control audit report was disclosed: Yes
Type of opinion on the internal control audit report: Standard unqualified opinion
XI. Environmental Information
Number of enterprises subject to
environmental information disclosure required 17
by law
No. Company name Access link to the environmental informationdisclosure report required by law
1 Dalian Zhongjia Food Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
2 Dalian Huakang Xinxin Food Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
3 Shenyang Huakang Broiler Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
4 Anshan Jiuguhe Food Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
5 Anshan Fengsheng Food Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
6 Huludao Jiuguhe Food Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
7 Jinzhou Xinfeng Food Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
8 Jinzhou Jiufeng Food Company https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
9 Changchun Wellhope Food Company http://36.135.7.198:9015/index
10 Pingyuan Wellhope Food ProcessingCompany http://121.29.48.71:8080/#/index
11 Hebei Taihang Wellhope Food Company http://121.29.48.71:8080/#/index
12 Shandong Heyuan Food Company http://221.214.62.226:8090/EnvironmentDisclosure/
13 Shandong Fengkang Food Company http://221.214.62.226:8090/EnvironmentDisclosure/
14 Anhui Wellhope Food Company https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
15 Chifeng Wellhope Fuxinyuan Food http://111.56.142.62:40010/cas/loginpagePublishTickCompany et=888f4e8f2c91403aaf2149d2d9322e91
16 Puyang Wellhope Food Company http://222.143.24.250:8247/home/home
17 Kaifeng Wellhope Meat Food Company http://222.143.24.250:8247/home/home
XII. Overview of Corporate Social Responsibility (CSR) Initiatives
1. CSR implementation overview
External Donations & Public
Welfare Projects Amount Explanation
Donations for education support
Total investment (RMB 10000) 528.58 public welfare and poverty
alleviation
Of which: cash (RMB 10000) 528.58
Detailed description:
As an important link between crop production and agri-food processing Wellhope has integrated social
55 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
responsibility into its development strategy since its establishment in 1995. At its inception the
Company articulated the core principles of its social responsibility through the Wellhope Declaration and
the Wellhope Mission. In 2018 it further established integrity responsibility and win-win cooperation as
its core values. Over the years the Company has continued to embed these principles into all aspects of
its operations and management promoting the coordinated development of corporate growth and social
value creation.
1. Fulfilling the corporate mission and creating shared value for the industry
A. Safeguarding grain security and advancing green development
The Company has continued to diversify raw material sources and improve feed efficiency through
ongoing formulation innovation reducing reliance on feed grains and supporting the sustainable
development of the livestock sector. Over the years it has developed a diversified formulation
technology system promoted diet solutions based on multiple grains and protein sources improved the
utilization of alternative protein meals and other raw materials and developed alternative ingredients
such as wheat-based ingredients and brown rice. These efforts have effectively reduced dependence on
corn and soybean meal. In environmental protection the Company strictly complies with relevant
national standards and develops eco-friendly feed products with lower heavy metal content and reduced
nitrogen and phosphorus emissions contributing to emissions reduction at the source. Its subsidiaries
also conduct regular environmental risk inspections and follow-up rectifications supporting the
coordinated development of the industry and ecological protection.B. Upholding quality standards and ensuring food safety
Guided by its vision of becoming a world-class enterprise in agriculture livestock and food sectors the
Company is committed to building a quality management system spanning the entire value chain from
raw materials to table. In feed production it operates a three-tier quality control system covering
headquarters regions and subsidiaries. The Company strictly implements standards such as the Feed
Quality and Safety Management Code supported by advanced testing equipment and raw material
traceability systems enabling closed-loop control from raw material procurement to finished product
delivery. Before China introduced its national ban on antibiotics in feed a number of the Company’s
feed products had already become antibiotic-free allowing it to provide safe high-quality nutritional
solutions for farming customers. In farming operations the Company applies standardized process
controls unified production standards and precision feeding programs. In slaughtering and processing it
has established rigorous quarantine inspection and veterinary drug residue testing procedures supported
by intelligent monitoring equipment to ensure that its products meet national food safety standards and
effectively safeguard food safety.C. Advancing public welfare and giving back to society
With “serving society” as a core part of its corporate culture the Company has developed a diversified
range of public welfare initiatives covering disaster relief education support and other areas and
continues to fulfill its responsibilities as a corporate citizen. Since its establishment the Company and its
subsidiaries have provided sustained support to disaster-affected areas disability assistance programs
56 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
and educational institutions through direct donations and partnerships with public welfare organizations
such as the Red Cross. Meanwhile the Company places strong emphasis on education and talent
development. It has funded the construction of six Hope primary and secondary schools and established
the Wellhope Education Fund which now covers nearly 30 local universities and supports the
development of innovative talent in the agriculture livestock and food sectors. In addition the Company
actively organizes internships practical training and university-enterprise exchange programs helping
university students connect academic learning with practical experience.D. Supporting employment and strengthening the talent foundation
The Company regards talent as its most important resource. In response to changes in the macro
environment it continues to fulfill social responsibilities with a focus on stabilizing employment
strengthening training and supporting employee growth. Based on business development needs the
Company regularly recruits both experienced professionals and campus graduates creating employment
opportunities for society while supporting its own development. Moreover the Company has built a
structured talent management system covering selection development deployment and retention. New
employees receive tailored training to help them build job-specific competencies and become ready for
their roles more quickly. Through internal promotion channels and diverse career paths employees are
able to pursue professional growth while contributing to the Company’s long-term objectives.
2. Upholding compliant operations and sharing the benefits of growth
For shareholders
A. Improving corporate governance and strengthening information disclosure
The Company has continued to strengthen its governance framework which comprises the Shareholders’
Meeting the Board of Directors and the management with clearly defined roles and responsibilities.Independent directors and the Board’s committees performed their oversight duties in accordance with
applicable laws and regulations supporting open and transparent decision-making. During the reporting
period the Company revised internal governance policies including the Rules of Procedure for the
Shareholders’ Meeting and the Rules of Procedure for the Board of Directors to improve governance
efficiency and keep the Company’s governance practices aligned with regulatory requirements and
industry developments. The Company also maintained a standardized information disclosure system
guided by the principles of fairness timeliness accuracy and completeness. The system covers annual
semi-annual and quarterly reports interim announcements on material matters and operating updates as
well as investor communications. In 2025 the Company held several performance briefings to present
its operating results respond to investor concerns and ensure equal access to information for all types of
investors.B. Innovating shareholders return mechanisms and reinforcing confidence in the Company’s
development
Against the backdrop of cyclical industry fluctuations and market pressure the Company remained
focused on protecting shareholder interests. While maintaining sound operations it continued to refine
its approach to shareholder returns to align corporate value creation with shareholder interests. During
57 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
2024 and 2025 the Company actively responded to downward pressure in the industry by implementing
two rounds of share repurchase plans. It repurchased a total of 47.0625 million shares for an aggregate
consideration of RMB 344 million which helped optimize the Company’s share capital structure
stabilize market expectations and demonstrate management’s firm confidence in the Company’s
long-term value. Looking ahead the Company will develop shareholder return strategies appropriate to
its operating performance and capital market conditions with a continued focus on rewarding
shareholders and safeguarding sustainable development.For employees
A. Optimizing the compensation system and strengthening long-term incentives
Guided by a human resources policy that emphasizes fairness impartiality and performance orientation
the Company has developed a compensation system covering fixed pay performance-based bonuses and
employee benefits. To maintain both internal fairness and market competitiveness the Company
regularly benchmarks its compensation practices against leading industry peers. In 2024 the Company
launched an employee stock ownership plan to enhance its ability to attract and retain core talent. Under
the plan 426 participants including management team members technical specialists and employees in
key positions acquired shares repurchased by the Company by way of non-trading transfer. By
establishing an incentive mechanism based on shared benefits and shared risks the plan further
motivates the management team and core employees to create value and provides internal momentum
for the Company’s sustainable development.B. Building a tiered development system and broadening career pathways
The Company has continued to refine its training management system to better support its strategy and
the needs of each business segment. Employees are provided with courses and learning resources
tailored to job requirements to strengthen their job-specific skills and support personal development. The
Company also launched the Management Training Camp which focuses on improving organizational
effectiveness leadership capabilities and strategic perspective among middle and senior managers.Employees are also encouraged to participate in industry summits and cross-sector study programs to
broaden their industry perspective. To support long-term career development the Company has
established a dual-track career system covering both management and technical pathways. Employees
may choose a management track or a technical specialist track based on their strengths with the
flexibility to move between tracks as their careers evolve. This approach helps make better use of talent
across the organization while enabling employees to advance alongside the Company.C. Enhancing employee well-being through diversified care initiatives
The Company provides employees with a range of supplementary benefits including commercial
insurance annual health check-ups and holiday benefits. Through the Wings of Love Foundation an
internal public welfare organization the Company provides ongoing care and support to employees and
their families. For 19 consecutive years Wings of Love has awarded scholarships to employees’ children
who were admitted to universities supporting talent development for the country and society. The
Foundation also provides financial assistance to families of employees facing sudden illness natural
58 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
disasters or other hardships helping them through difficult times. In addition the Company regularly
organizes various corporate culture activities to enrich employees’ work and personal lives. These
activities help strengthen team cohesion and enhance employees’ sense of belonging and well-being.For customers
A. Delivering tailored solutions and a high-quality product portfolio
Guided by a market-oriented and customer-centric R&D philosophy the Company manages R&D
through an end-to-end process that begins with identifying customer needs and continues through
product development and performance validation. Its R&D team closely monitors market changes and
practical challenges in farming operations developing nutrition solutions and feeding programs tailored
to specific production needs. The Company also refines its products in response to real farming
scenarios. For example it develops new products and adjusts feeding programs for pigs in secondary
finishing and for broiler farms seeking to improve livability. The Company has also established an
iterative product development model that combines continuous improvement of existing products with
the development of new products. With a consistent focus on improving farming efficiency and reducing
farming costs the Company continues to refine its product portfolio and develop new solutions to meet
the specific needs of different customers.B. Innovating technical services to achieve mutual success
The Company has continued to build an integrated service model that brings together technical services
management support and resource coordination providing customers with practical support throughout
the farming process. The technical service team composed of livestock specialists veterinarians and
nutritionists works directly with farms to identify production challenges and provide tailored
one-on-one solutions ranging from farming process design to disease prevention and control. This
hands-on approach helps customers address practical issues in daily production and improve overall
farming performance. To make technical support more accessible the Company has also developed a
farming service platform that shares farming techniques and market analysis through short videos and
livestreamed courses enabling farmers to obtain real-time technical support. For large-scale farms the
Company provides full-cycle management solutions covering feed nutrition design farming data
monitoring and precise cost analysis. By combining technical expertise management tools and resource
support the Company helps customers reduce costs improve efficiency and build mutually beneficial
partnerships.Looking ahead the Company will continue to adopt a global perspective further improve the efficiency
of grain resource utilization support the stable supply of essential livelihood products and contribute to
the high-quality development of the industry. In pursuing sustainable development Wellhope will
continue to fulfill its responsibilities as a corporate citizen and contribute to building a sustainable
ecosystem for the agriculture livestock and food sectors.XIII. Efforts to Consolidate Poverty Alleviation Achievements and Advance Rural Revitalization
Poverty alleviation and rural revitalization
projects Amount Explanation
59 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Total investment (RMB 10000) 652.83 See details below
Of which: cash (RMB 10000) 652.83 /
In-kind contribution (RMB 10000) / /
Forms of assistance (such as poverty
alleviation by developing industries Poverty alleviation by
offering job opportunities and supporting developing industries /
education)
Detailed description:
Although China has achieved a decisive victory in poverty alleviation consolidating and expanding
these achievements and effectively linking them with rural revitalization remains a challenging
long-term task. The 2025 Government Work Report called for continued efforts to advance work related
to agriculture rural areas and farmers and to further promote comprehensive rural revitalization. As a
key leading enterprise in agricultural industrialization the Company actively participates in poverty
alleviation through industrial development contributing to the national efforts to advance rural
revitalization and accelerate the development of China into a strong agricultural country.During the reporting period the Company fully leveraged its role as a leading enterprise to support rural
development improve agricultural efficiency and increase farmers’ income. Its subsidiaries including
Dalian Heyuan Animal Husbandry Company Wafangdian Huinong Poultry Company Daqing Wellhope
Food Company and Hebei Taihang Wellhope Food Company worked with local governments on
poverty alleviation projects through industrial development to support rural revitalization in assisted
areas. These projects created employment opportunities for impoverished households supported their
participation in the Company’s broiler farming operations and helped farmers increase income through
project dividend-sharing arrangements. In 2025 dividend payments under these projects amounted to
RMB 6.5283 million.
60 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Section V Important Disclosures
I. Fulfillment of Commitments
Commitments made by the Company’s actual controller shareholders related parties acquirers the Company and other relevant committing parties during or
continuing into the reporting period
Whether
Background of Type of Committing Content of commitment Date of
there is a Timely
commitment commitment party commitment deadline
Commitment
for period
and strict
fulfillment
fulfillment
Natural-person I warrant and undertake that I will not directly or indirectly develop
Avoidance of shareholders operate assist in operating participate in or engage in any business
horizontal holding more that competes with Wellhope. If Wellhope expands its business scope March 2 2011 Yes Long-term Yes
competition than 5% of after the date of this commitment I undertake not to engage in such valid
share business.Corporate
Regulation shareholder The company warrants and undertakes that it will not directly or
of holding more indirectly develop operate assist in operating participate in orengage in any business that competes with Wellhope. If Wellhope March 2 2011 Yes Long-termrelated-party than 5% of expands its business scope after the date of this commitment the valid
Yes
transactions shares-Heli
Investment company undertakes not to engage in such business.The controlling shareholder Jin Weidong and persons acting in concert
with him namely Shao Caimei Wang Fengjiu Wang Zhongtao and
Ding Yunfeng undertake that the prospectus and its summary contain
IPO-related no false records misleading statements or material omissions and
commitments assume individual and joint legal liability for their truthfulnessaccuracy and completeness. If they breach the above commitment
they will publicly explain the reasons for non-fulfillment at the
Jin Weidong Company’s Shareholders’ Meeting and in newspapers designated by
Wang Fengjiu the CSRC and apologize to the Company’s shareholders and public
Other Shao Caimei investors. They will repurchase in accordance with law any original Long-termWang restricted shares they have transferred. Within 10 trading days after the March 2 2011 Yes valid Yes
Zhongtao securities regulatory authority makes a determination on the above
Ding Yunfeng facts or issues a penalty decision in accordance with law they will
prepare a repurchase plan and submit to the Company to announce it.They will also request the Company to repurchase all new shares
issued in the IPO in accordance with law. Where any investor sustains
losses in securities trading due to any false records misleading
statements or material omissions contained in the prospectus
above-mentioned persons shall compensate such investors in
accordance with applicable laws.
61 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
The Company undertakes that the prospectus and its summary contain
no false records misleading statements or material omissions and
assumes individual and joint legal liability for their truthfulness
accuracy and completeness. If the Company breaches the above
commitment it will publicly explain the reasons for non-fulfillment at
the Shareholders’ Meeting and in newspapers designated by the
CSRC and apologize to shareholders and public investors. The
Company will repurchase all new shares issued in the IPO at the
IPO-related Other Wellhope higher of the prevailing secondary market price at the time of Long-termcommitments repurchase and the IPO issue price. Within 10 trading days after the March 2 2011 Yes valid Yes
securities regulatory authority makes a determination on the above
facts or issues a penalty decision in accordance with law the Board
shall prepare and announce a repurchase plan and submit it to the
Shareholders’ Meeting for approval. Where any investor sustains
losses in securities trading due to any false records misleading
statements or material omissions contained in the prospectus the
Company shall compensate such investors in accordance with
applicable laws.To protect the lawful rights and interests of investors and mitigate the
potential dilution of immediate returns from this issuance the
Company will take measures to ensure the effective use of raised
funds and reduce the risk of dilution of immediate returns. The
specific measures are as follows:
1. The Company will actively and prudently advance the construction
of investment projects funded with raised funds improve operating
efficiency and profitability and reduce the risk of dilution of
immediate returns after the issuance. The implementation of these
projects will strengthen the Company’s capital base enhance its ability
to withstand market competition risks and improve its overall
competitiveness.Refinancing-related Other Wellhope 2. The Company will strengthen the management of raised funds and Long-termcommitments ensure their compliant and effective use. After the raised funds from July 2 2021 Yes valid Yes
this issuance are received the Company will deposit and use such
funds through dedicated accounts in strict compliance with the
Securities Law the Stock Listing Rules of Shanghai Stock Exchange
the Regulatory Guidelines for Listed Companies No. 2 — Regulatory
Requirements for the Management and Use of Raised Funds by Listed
Companies other relevant provisions and the Company’s Measures
for the Management of Raised Funds. The Company will ensure that
the raised funds are fully and effectively used for their intended
purposes and will prevent risks associated with their use.
3. The Company will strengthen operations management and internal
control improve daily operating efficiency reduce operating costs
comprehensively control operational and management risks and
62 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
enhance overall operating efficiency.
4. The Company will continue to improve its profit distribution
policy. With a focus on long-term and sustainable development the
Company has established a sustained stable and sound return plan and
mechanism for investors by taking into account factors such as its
actual conditions development goals shareholder requirements and
expectations social funding costs and external financing environment
so as to ensure the continuity and stability of its dividend distribution
policy. Going forward the Company will strictly implement its
dividend policy strengthen the investor return mechanism and protect
the interests of shareholders especially minority shareholders. Future
operating results are subject to various macro and micro factors and
involve uncertainties. The Company’s measures to mitigate the
dilution of immediate returns do not constitute a guarantee of future
profits.
5. The Company will strengthen talent team building establish a
talent structure aligned with its development needs continue to
strengthen R&D and sales teams and introduce outstanding
management talent. The Company will put in place more effective
incentive and competition mechanisms as well as scientific
reasonable and practical talent introduction and training systems and
build a market-oriented talent operation model to provide reliable
talent support for its sustainable development.To ensure the effective implementation of the Company’s measures to
mitigate the dilution of immediate returns the Company’s controlling
shareholder and actual controller undertakes as follows:
1. He will not interfere in the Company’s operation or management
beyond his authority nor will he harm the Company’s interests.
2. As a responsible party for such measures if he breaches or refuses
Controlling to fulfill the above commitments he agrees to assume corresponding
Refinancing-related Other shareholder legal liability in accordance with relevant rules issued by the CSRC Long-termcommitments and actual the Shanghai Stock Exchange and other securities regulators. July 2 2021 Yes valid Yes
controller 3. From the date of this commitment until completion of the
Company’s public offering of convertible corporate bonds if the
CSRC issues additional provisions or imposes other requirements
regarding such measures and related commitments and the above
commitments fail to satisfy such requirements he will issue
supplementary commitments in accordance with the CSRC’s
requirements.To ensure the effective implementation of the Company’s measures to
Refinancing-related All directors mitigate the dilution of immediate returns all directors and senior
commitments Other and senior management of the Company undertake as follows: July 2 2021 Yes
Long-term Yes
management 1. I will not transfer benefits to any other entity or individual without valid
consideration or on unfair terms nor will I otherwise harm the
63 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company’s interests.
2. I will exercise restraint over duty-related expenses.
3. I will not use the Company’s assets for investment or consumption
activities unrelated to the performance of my duties.
4. I will support linking the compensation system formulated by the
Board of Directors or the Compensation Committee to the
implementation of the Company’s measures to mitigate the dilution of
immediate returns.
5. I will support linking the exercise conditions of any proposed
equity incentive plan to the implementation of the Company’s
measures to mitigate the dilution of immediate returns.
6. From the date of this commitment until completion of this public
offering of convertible corporate bonds if the CSRC issues additional
provisions or imposes other requirements regarding such measures and
related commitments and the above commitments fail to satisfy such
requirements I will issue supplementary commitments in accordance
with the CSRC’s requirements.
7. I will effectively implement the relevant measures formulated by
the Company to mitigate the dilution of immediate returns and fulfill
any related commitments made by me. If I breach such commitments
and cause losses to the Company or investors I will assume
compensation liability in accordance with law.
8. As a responsible party for such measures if I breach or refuse to
fulfill the above commitments I agree that the CSRC the Shanghai
Stock Exchange and other securities regulators may impose penalties
or take regulatory measures against me in accordance with applicable
rules.
64 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
II. Analysis of Accounting Policy and Estimate Changes and Corrections of Material Accounting
Errors
1. Analysis of changes in major accounting policies
Financial
Changes in accounting policies statement items Amount
materially affected affected
The Notice on Strictly Implementing the Accounting Standards for
Business Enterprises and Properly Preparing the 2025 Annual
Reports of Enterprises jointly issued by the Ministry of Finance
the State-owned Assets Supervision and Administration
Commission of the State Council the National Administration of
Financial Regulation and the China Securities Regulatory
Commission as well as the Q&A on Accounting for Standard
Warehouse Receipt Transactions issued by the Accounting
Department of the Ministry of Finance on July 8 2025 specify the
accounting treatment for certain standard warehouse receipt The
transactions. Where an enterprise frequently enters into purchase implementation of
and sale contracts for standard warehouse receipts on futures this requirement
trading venues to profit from price spreads without taking delivery had no material
of the underlying physical commodities such contracts shall be impact on the N/A
classified as financial instruments and accounted for in accordance Company’s
with the accounting standard on the recognition and measurement financial
of financial instruments. Unsold standard warehouse receipts held statements for the
at the end of a reporting period shall be presented as other current reporting period.assets. For standard warehouse receipts acquired under such
contracts if measuring them at fair value through profit or loss
would eliminate or significantly reduce an accounting mismatch
the enterprise may elect at initial recognition to measure them on
that basis and shall apply the election consistently to all eligible
standard warehouse receipts. The Company has applied the
relevant provisions of the Notice and the Q&A from January 1
2025.
III. Appointment and Change of Accounting Firm
RMB 10000
Current Auditor
Name of domestic accounting firm RSM CHINA CPA LLP
Audit fees 161.40
Years of audit service to the Company 2 years
Certified public accountants Wu Yu Zhao SongheZhang Yuanyuan
Cumulative years of audit service to the Company Wu Yu: 1 year
by the certified public accountants Zhao Songhe: 2 yearsZhang Yuanyuan: 2 years
Name Payment (RMB 10000)
Accounting firm of internal
control RSM CHINACPA LLP 40
IV. Major Litigation and Arbitration Matters
None
65 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
V. Credit Status of the Company its Controlling Shareholder and Actual Controller during the
Reporting Period
During the reporting period there was no failure by the Company its controlling shareholder or its
actual controller to comply with any court judgment that had come into effect nor was there any
material debt that was due and unpaid.VI. Material Related Party Transactions
1. Related party transactions in the ordinary course of business
66 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
RMB 10000
Related party Relationship Transaction type Transaction content Pricing principle Transactionamount Settlement mode
Anshan Fengsheng Food Company Associatedcompany Selling product Live broilers Comparable uncontrolled price 17.27 Bank transfer
Dalian Chengsan Food Group Company Associatedcompany Selling product Feed raw materials Comparable uncontrolled price 6938.18 Bank transfer
Linghai Jiuguhe Feed Company Associatedcompany Selling product Feed raw materials Comparable uncontrolled price 1469.99 Bank transfer
Tai’an Jiuguhe Agriculture Development Associated
Company company Selling product Feed raw materials Comparable uncontrolled price 2834.61 Bank transfer
Dalian Sida Food Company Associatedcompany Selling product Live broilers Comparable uncontrolled price 690.70 Bank transfer
Harbin Weierhao Trading Company Associatedcompany Selling product Feed raw materials Comparable uncontrolled price 10038.58 Bank transfer
Jilin Hengfeng Animal Health Products Associated
Company company Selling product Other Comparable uncontrolled price 0.09 Bank transfer
Huludao Jiuguhe Food Company Associatedcompany Selling product Other Comparable uncontrolled price 87.89 Bank transfer
Jinzhou Jiufeng Food Company Associatedcompany Selling product Other Comparable uncontrolled price 1.48 Bank transfer
Hebei Taihang Wellhope Animal Associated
Husbandry Company company Selling product Live broilers Comparable uncontrolled price 1643.96 Bank transfer
Beipiao Hongfa Food Company Associatedcompany Selling product Feed raw materials Comparable uncontrolled price 2948.50 Bank transfer
Anshan Jiuguhe Food Company Associated Purchasing Broiler partscompany product products Comparable uncontrolled price 5.90 Bank transfer
Dalian Chengsan Food Group Company Associated Purchasingcompany product Live broilers Comparable uncontrolled price 9506.15 Bank transfer
Gongzhuling Wellhope Corn Procurement Associated Purchasing
and Storage Company company product Feed raw materials Comparable uncontrolled price 683.64 Bank transfer
Jinzhou Jiufeng Food Company Associated Purchasing Broiler partscompany product products Comparable uncontrolled price 403.58 Bank transfer
Shenyang Zhongwenjie Biotechnology Associated Purchasing Veterinary drugs and
Company company product vaccines Comparable uncontrolled price 15233.65 Bank transfer
Tai’an Jiuguhe Agriculture Development Associated Purchasing
Company company product Feed products Comparable uncontrolled price 764.42 Bank transfer
Jilin Hengfeng Animal Health Products Associated Purchasing Veterinary drugs and Comparable uncontrolled price 9.48 Bank transfer
67 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company company product vaccines
Harbin Weierhao Trading Company Associated Purchasingcompany product Feed raw materials Comparable uncontrolled price 1577.97 Bank transfer
Beipiao Hongfa Food Company Associated Purchasing Broiler partscompany product products Comparable uncontrolled price 1848.12 Bank transfer
Anshan Fengsheng Food Company Associated Purchasing Broiler partscompany product products Comparable uncontrolled price 17.88 Bank transfer
Hebei Taihang Wellhope Animal Associated Purchasing
Husbandry Company company product Live broilers Comparable uncontrolled price 20693.60 Bank transfer
Huludao Jiuguhe Food Company Associated Purchasing Broiler partscompany product products Comparable uncontrolled price 16.01 Bank transfer
Liaoning Petmate Biotechnology Company Associated Receivingcompany services Other Comparable uncontrolled price 132.82 Bank transfer
Total / 77564.47 /
Details of significant sales returns None
The Company has maintained long-term cooperation with its associated companies.As both sides are familiar with each other’s operations and product standards these
relationships help reduce transaction costs improve transaction efficiency and
lower the risk of commercial disputes. Purchasing production materials from
related parties also helps the Company obtain raw materials with more stable and
reliable quality. By participating in the management of these companies and
exercising appropriate influence the Company is better able to secure the quality
Explanation of related-party transactions and long-term stable supply of raw materials. At the same time these arrangements
help the associated companies focus more on production by reducing their sales
pressure. The related-party transactions entered into by the Company are required
for its ordinary business operations. Purchase and sale prices are determined with
reference to prevailing market prices for comparable products. These transactions
comply with applicable laws and regulations the Articles of Association and the
Company’s Related-Party Transaction Management Policy and do not prejudice
the interests of any shareholder.
68 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
2. Guarantees
RMB 10000
Guarantees provided to external parties (excluding subsidiaries)
Total amount of guarantees provided during the reporting period (excluding guarantees provided to
subsidiaries) 37394.15
Outstanding balance of guarantees at the period end (A) (excluding guarantees provided to
subsidiaries) 17998.77
Guarantees provided by the Company and its subsidiaries to other subsidiaries
Total amount of guarantees provided to subsidiaries during the reporting period 559678.88
Outstanding balance of guarantees provided to subsidiaries at the period end (B) 204897.10
Total guarantees provided by the Company (including guarantees provided to subsidiaries)
Total guarantees (A+B) 222895.87
Total guarantees as a percentage of the Company’s net assets (%) 33.67
Including:
Amount of guarantees provided to shareholders the actual controller and their related parties (C)
Amount of debt guarantees provided directly or indirectly to guaranteed parties with an asset-liability
ratio above 70% (D) 91766.26
Amount of total guarantees exceeding 50% of the Company’s net assets (E)
Total amount of the above three categories of guarantees (C+D+E) 91766.26
69 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
VII. Progress in the Use of Raised Funds
1. Use of raised funds
RMB 10000
Committed Cumulative Amount Percentage Total amount
Source of raised Date of funds Total raised investment Cumulative investment
funds receipt funds Net proceeds (1) amount stated in investment as of progress as of
invested during invested during of raised funds
the prospectus period end (3) period end (%) the year the year (%) with changed
(2) (4)=(3)/(1) (5) (6)=(5)/(1) use
Issuance of
convertible April 28 2022 150000.00 148988.35 148988.35 89992.88 60.40 14000.00 9.40 72995.47
bonds
Total / 150000.00 148988.35 148988.35 89992.88 / 14000.00 / 72995.47
2. Investment projects funded with raised funds
RMB 10000
Whether
Date
Whether it Cumulative the Specific Whether
Whether Planned when the
is the Amount Cumulative investment Whether investment reasons for Profit the project
Source of the investment project
Projects invested by the project invested investment as progress as of the project progress is investment realized feasibility Unused
raised Project nature investment amount of reaches
raised funds stated in during the of period end has been in line progress during has balance
funds has raised intended
the year period end (2) (%) completed with the falling behind the year changed
changed funds (1) usable
prospectus (3)=(2)/(1) planned schedule materially
condition
schedule
Shenyang Nongda
Issuance of Wellhope Feed
Production
convertible Company--complete feed Yes No 7988.44 7988.44 100.00 Dec. 2023 Yes Yes -542.48 No 411.56
construction
bonds mill with annual capacity
of 300000 tons
Anhui Wellhope Animal
Yes the
Husbandry Company--pig
project
Issuance of feed project with annual
Production was
convertible capacity of 300000 tons Yes - - Terminated N/A No No Terminated N/A Yes 11400.00
construction cancelled
bonds ruminant feed project with
or
annual capacity of 150000
terminated
tons
Heilongjiang Wellhope Yes the
Animal Husbandry project
Issuance of
Company--creep feed and Production was
convertible Yes 262.40 262.40 Terminated N/A No No Terminated N/A Yes 3637.60
nursery feed project with construction cancelled
bonds
annual capacity of 100000 or
tons terminated
Issuance of Fuxin Wellhope Production Yes No 12818.20 12818.20 100.00 Dec. 2023 Yes Yes -1649.46 No 4581.80
70 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
convertible Agriculture and Animal construction
bonds Husbandry Company--pig
breeding integration
project producing 150000
piglets per year
Lingyuan Wellhope Yes the
Agriculture and Animal project
Issuance of
Husbandry Production was
convertible Yes 17.52 17.52 Terminated N/A No No Terminated N/A Yes 24670.83
Company--breeding farm construction cancelled
bonds
with annual production of or
10000 breeding pigs terminated
Anhui Wellhope Food
Company-- integrated pig
Yes the
project with annual
project Slaughter
Issuance of slaughtering capacity of 1
Production was Partially project Partially
convertible million pigs further Yes 9200.87 9200.87 No No -1574.33 Yes 5199.13
construction cancelled terminated completed terminated
bonds processing capacity of
or in 2023
120000 tons of pork and
terminated
supporting cold-chain
logistics
Pingyuan Wellhope Food
Yes the
Processing
project
Issuance of Company--further
Production was
convertible processing project with Yes 705.45 705.45 Terminated N/A No No Terminated N/A Yes 23094.55
construction cancelled
bonds annual capacity of 30000
or
tons of prepared and
terminated
cooked food(broiler)
Supplementing
Issuance of
Supplementation of working
convertible Yes No 45000.00 45000.00 100.00 N/A Yes Yes N/A No
working capital capital and
bonds
repaying loans
Siping Wellhope Food
Issuance of Yes it is a
Company- phase I Production
convertible No new 10000.00 10000.00 10000.00 100.00 Dec. 2025 Yes Yes N/A No
integration project with 80 construction
bonds project
million broilers
Siping Wellhope Farming
Issuance of Yes it is a
Company- farming project Production
convertible No new 5000.00 4000.00 4000.00 80.00 Dec. 2025 Yes Yes N/A No
with annual production of construction
bonds project
14.4 million broilers
Issuance of
Raised funds not yet
convertible N/A N/A N/A 57995.47 N/A N/A N/A N/A No
allocated
bonds
/ Total / / / 148988.35 14000.00 89992.88 / / / / / -3766.27 / 72995.47
Note 1: To ensure the smooth implementation of the investment projects funded with raised funds the Company provided loans to the implementing entities of the newly added investment
projects. The loan amount did not exceed the total amount of raised funds planned to be invested. As of December 31 2025 the Company had provided a loan of RMB 100 million to Siping
71 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Wellhope Food Company and a loan of RMB 40 million to Siping Wellhope Farming Company both of which had been fully used for project expenditures.Note 2: The complete feed production project of Shenyang Nongda Wellhope Feed Company with an annual capacity of 300000 tons did not achieve the expected benefits mainly due to the
downward cycle in the swine farming industry intensified industry competition and a shrinking commercial feed market. The project’s actual production and sales volume fell short of its
designed capacity resulting in relatively high fixed costs per unit. The integrated piglet breeding project of Fuxin Wellhope Agriculture and Animal Husbandry Company with an annual
capacity of 150000 piglets also failed to achieve the expected benefits mainly due to the downward cycle in the swine farming industry and persistently weak hog prices. Although swine
farming costs declined the decrease was not sufficient to offset the decline in hog prices.
3. Changes in the investment projects during the reporting period
RMB 10000
Raised funds
Raised funds used to
Original project Date of change (date Type of
Total raised funds
of announcement) change committed before
actually invested Project name after
before change Reason for change/termination
supplement Procedures and
change/termination working capital disclosurechange/termination after change/
termination
Anhui Wellhope The Company held
Animal Husbandry Disease prevention and control challenges
combined with sharp fluctuations in the the 12th meeting ofCompany--pig feed the 8th Board of
project with annual swine farming market have led to the exit of
capacity of 300000 Aug. 19 2025 Cancellation 11400.00 0.00 N/A a large number of backyard farms. As the
Directors on August
0.00
share of output from integrated large-scale 15 2025 and the 3rdtons ruminant feed
project with annual farms has increased the market space for
extraordinary
Shareholders’
capacity of 150000 commercial feed has contracted intensifying
competition in the existing market. The Meeting of 2025 ontons
existing feed production capacity in the September 4 2025
Heilongjiang regions where the Company’s investment at which the
Wellhope Animal projects funded with raised funds are located proposal on the
Husbandry is already sufficient to meet local demand. To completion and
Company--creep Aug. 19 2025 Cancellation 3900.00 262.40 N/A avoid duplicate construction and overcapacity 0.00 termination offeed and nursery risks and to improve the efficiency of the use certain investment
feed project with of raised funds the Company has decided to projects funded with
annual capacity of terminate the two feed projects. raised funds under
100000 tons the 2022 public
Due to multiple factors African swine fever offering of
Lingyuan Wellhope prevention and control has become more
convertible
Agriculture and challenging in northern China leading to the
corporate bonds andindustry trend of “breeding sows moving the use of part of theAnimal HusbandryCompany--breeding Aug. 19 2025 Cancellation 24688.35 17.52 N/A south and piglets moving north.” In response
remaining raised
farm with annual the Company has adjusted its strategy by
0.00 funds for new
production of 10000 prudently controlling breeding stock capacity
investment projects
breeding pigs in northern China maintaining a relatively
funded with raised
stable herd size and improving breeding funds was approved.stock quality while moderately increasing For details please
72 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
external piglet purchases and contract refer to the relevant
fattening based on piglet market prices. In announcement
addition the Implementation Plan for disclosed by the
Regulating Hog Production Capacity issued Company on the
in 2024 lowered the normal inventory target website of the
for breeding sows from 41 million to 39 Shanghai Stock
million head guiding enterprises to phase out Exchange
low-productivity sows reduce secondary (www.sse.com.cn)
finishing and avoid irrational expansion and on August 16 2025
vicious competition. To adapt to market (Announcement
changes and control investment risks the No.: 2025-074).Company has decided to terminate this
project.Further processing of pork involves complex
Anhui Wellhope requirements such as industrial chain
Food Company-- extension and market channel development
integrated pig and would require substantial capital and
project with annual resources. To reduce the operational risks
slaughtering associated with a new business area the
capacity of 1 million Aug. 19 2025 Partialcancellation 14400.00 9200.87 N/A Company has strategically decided to defer 0.00pigs further entry into pork further processing and
processing capacity prioritize the development of its principal
of 120000 tons of businesses. Accordingly the Company has
pork and supporting decided to terminate the 120000-ton pork
cold-chain logistics further processing and cold-chain logistics
project.Affected by external macro factors consumer
Pingyuan Wellhope demand for meat products has remained
Food Processing weak. Other similar food projects previously
Company--further invested in by the Company have not yet
processing project reached full capacity as expected creating
with annual capacity Aug. 19 2025 Cancellation 23800.00 705.45 N/A significant uncertainty over the return on 0.00
of 30000 tons of investment of this project. To adapt to
prepared and cooked changes in market demand and control
food(broiler) investment risks the Company has decided to
terminate this project.
4. Other use of raised funds during the reporting period
A. Prior investment and replacement with raised funds
On May 24 2022 the Company held the 11th meeting of the 7th Board of Directors at which the proposal on using raised funds from the convertible corporate
bonds to replace self-raised funds previously invested in relevant projects was approved. The Board approved the use of RMB 240.2023 million of raised funds to
replace self-raised funds previously invested in relevant projects and used to pay issuance expenses. The Company’s independent directors and sponsor China
73 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Galaxy Securities expressed their consent on this matter. Suya Jincheng Certified Public Accountants LLP conducted a special verification of the Company’s prior
investment in relevant projects using self-raised funds as of May 24 2022 and issued a special assurance report (Suya Verification [2022] No. 29).B. Use of idle raised funds to temporarily supplement working capital
On April 24 2025 the Company held the 11th meeting of the 8th Board of Directors at which the proposal on using part of idle raised funds to temporarily
supplement working capital was approved. To maximize shareholder interests and improve the efficiency of idle raised funds while ensuring that project
construction and the use of raised funds would not be affected the Company proposed to use no more than RMB 730 million of idle raised funds to temporarily
supplement working capital for a period of no more than 12 months from the date of Board approval. The Company actually used RMB 700 million of idle raised
funds to temporarily supplement working capital. Of this amount RMB 150 million was returned in advance to the dedicated account for raised funds on September
8 2025 and the remaining RMB 550 million was returned to the special account upon maturity on April 23 2026.
5. Conclusive opinions of the sponsor and accounting firm on the special verification and assurance of the deposit and use of raised funds
Upon verification the sponsor China Galaxy Securities Co. Ltd. concluded that the deposit and use of raised funds by Wellhope Foods Co. Ltd. in 2025 complied
with the Rules for the Regulation of Raised Funds by Listed Companies the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 —
Standardized Operation and other applicable laws regulations and regulatory documents. The Company deposited the raised funds in dedicated accounts used them
for designated purposes and fulfilled its relevant information disclosure obligations in a timely manner. The actual use of raised funds was consistent with the
Company’s disclosures. There was no disguised change in the use of raised funds no harm to shareholders’ interests and no non-compliant use of raised funds.In its assurance opinion RSM China concluded that the Special Report of Wellhope Foods Co. Ltd. on the Deposit and Actual Use of Raised Funds in 2025 was
prepared in all material respects in accordance with the aforesaid Rules for the Regulation of Raised Funds by Listed Companies and the relevant rules of the stock
exchange and fairly reflected the Company’s actual deposit and use of raised funds in 2025.
74 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Section VI Changes in Shares and Shareholders
I. Changes in Shares
1. Table of changes in shares
Before changing Increase or decreasein the year After changing
Shares Percentage % Other Subtotal Shares Percentage %
1. Shares with selling
restrictions
A. State-owned
shares
B. Shares held by
state-owned entity
C. Shares held by
other domestic
investors
D. Shares held by
foreign investors
2. Shares without
selling restrictions 919434448 100.00 -6943315 -6943315 912491133 100.00
A. RMB ordinary
shares 919434448 100.00 -6943315 -6943315 912491133 100.00
B. Foreign shares
listed domestically
C. Foreign shares
listed overseas
3. Total shares 919434448 100.00 -6943315 -6943315 912491133 100.00
2. Explanation of changes in shares
On April 22 2022 the Company publicly issued RMB 1.5 billion convertible corporate bonds named
“Wellhope Convertible Bond” (bond code: 113647). From January 1 2025 to December 31 2025 RMB
134000 of Wellhope Convertible Bonds were converted into the Company’s shares resulting in 13264
new shares.On February 25 2025 the Company held the 9th meeting of the 8th Board of Directors and on March
13 2025 it held the first extraordinary Shareholders’ Meeting of 2025 at which the proposal on
changing the purpose of part of the repurchased shares and cancelling them was approved. On April 29
2025 the Company cancelled 6956579 shares held in its dedicated securities account for share
repurchases and reduced its registered capital accordingly.As a result the total number of shares of the Company decreased from 919434448 shares to
912491133 shares.
II. Issuance and listing of securities
1. Changes in the Company’s total number of shares and shareholding structure and changes in
asset and liability structure
During the reporting period due to the cancellation of shares and the conversion of convertible bonds
into shares the Company’s total share capital changed from 919434448 shares to 912491133 shares.The Company’s control remained unchanged. At the beginning of the reporting period the Company’s
total assets were RMB 14.883 billion total liabilities were RMB 7.305 billion and the asset-liability
ratio was 49.09%. At the end of the reporting period the Company’s total assets were RMB 18.180
billion total liabilities were RMB 10.231 billion and the asset-liability ratio was 56.28%.
75 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
III. Shareholder and Actual Controller
1. Total shareholders
Number of shareholders at the end of the reporting period
(accounts) 23850
Number of shareholders at the end of the month preceding the
disclosure date of the annual report (accounts) 23938
2. Top ten shareholders and top ten shareholders holding unrestricted shares as at the end of the
reporting period
Shareholding of top ten shareholders
Total shares Pledged or Frozen
Name of shareholder Changes in held at the % Restricted Nature ofthe year period end shares held Status Shares shareholder
Domestic
Jin Weidong 149549498 16.39 - natural
person
DE HEUS
MAURITIUS 82303939 9.02 -
Overseas
legal entity
Domestic
Ding Yunfeng -1594500 80335058 8.80 - natural
person
Changzhou Heli
Venture Capital
Partnership (Limited 48360000 5.30 - Other
Partnership)
Wellhope Foods Co.Ltd. dedicated
securities account for 118221 47062532 5.16 - Other
share repurchase
Domestic
Zhang Tiesheng -3598100 44761900 4.91 - natural
person
Domestic
Shao Caimei -8000000 41773878 4.58 - natural
person
Domestic
Wang Fengjiu -11990000 35974602 3.94 - natural
person
Domestic
Wang Zhongtao -11656000 34969229 3.83 - natural
person
Wellhope Foods Co.Ltd. – 2024 Employee 14000000 1.53 - Other
Stock Ownership Plan
Top ten shareholders holding unrestricted shares
Name of shareholder Unrestricted shares Shares and typeheld Type Shares
Jin Weidong 149549498 RMB common stock 149549498
DE HEUS MAURITIUS 82303939 RMB common stock 82303939
Ding Yunfeng 80335058 RMB common stock 80335058
Changzhou Heli Venture Capital Partnership (Limited
Partnership) 48360000 RMB common stock 48360000
Wellhope Foods Co. Ltd. dedicated securities account
for share repurchase 47062532 RMB common stock 47062532
Zhang Tiesheng 44761900 RMB common stock 44761900
Shao Caimei 41773878 RMB common stock 41773878
Wang Fengjiu 35974602 RMB common stock 35974602
Wang Zhongtao 34969229 RMB common stock 34969229
Wellhope Foods Co. Ltd. – 2024 Employee Stock
Ownership Plan 14000000 RMB common stock 14000000
Description of the dedicated repurchase account First share repurchases in 2024: The repurchase was completed on
76 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
September 23 2024. The Company repurchased 29759468 shares
by way of centralized bidding representing 3.26% of the
Company’s total share capital as at the end of 2025. The total
amount paid was RMB 198.3949 million excluding transaction
costs.Second share repurchases in 2024: The repurchase was completed
on October 27 2025. The Company repurchased 17303064 shares
by way of centralized bidding representing 1.90% of the
Company’s total share capital as at the end of 2025. The total
amount paid was RMB 145.4592 million excluding transaction
costs.According to the provisions of the Company’s 2024 Employee
Explanation of voting rights entrusted received or Stock Ownership Plan the 14000000 shares held in the securities
waived by the above shareholders account of the employee stock ownership plan shall not exercise
voting rights at Shareholders’Meetings during the term of the plan.
1. Jin Weidong Wang Fengjiu and Shao Caimei are parties acting
Explanation of related-party relationships or in concert.acting-in-concert arrangements among the above 2. Jin Weidong is the actual controller of Changzhou Heli Venture
shareholders Capital Partnership (Limited Partnership).3. No related-party relationship or acting-in-concert arrangement
was identified among the remaining shareholders.IV. Controlling Shareholder and Actual Controller
1. Controlling shareholder
A. Natural person
Name Jin Weidong
Nationality China
Whether holding residency in other
countries or regions No
Primary occupation and position Chairman of Wellhope Foods Co. Ltd.B. Diagram of the ownership and control relationship between the Company and its controlling
shareholder
As of December 31 2025 Jin Weidong directly held 149549498 shares of the Company representing
16.39% of the total share capital. He indirectly controlled 5.30% of the Company’s voting rights through
his control over Changzhou Heli. In addition pursuant to the Letter of Confirmation and Undertaking of
Concerted Action he jointly controlled 8.52% of the Company’s voting rights together with Wang
Fengjiu who held 3.94% and Shao Caimei who held 4.58%. In total Jin Weidong controlled 30.21% of
the Company’s voting rights he is the controlling shareholder of the Company.
2. Actual controller
77 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
A. Natural person
Name Jin Weidong
Nationality China
Whether holding residency in other countries
or regions No
Primary occupation and position Chairman of Wellhope Foods Co. Ltd.B. Diagram of ownership and control relationship between the Company and its actual controller
As of December 31 2025 Jin Weidong directly held 149549498 shares of the Company representing
16.39% of the total share capital. He indirectly controlled 5.30% of the Company’s voting rights through
his control over Changzhou Heli. In addition pursuant to the Letter of Confirmation and Undertaking of
Concerted Action he jointly controlled 8.52% of the Company’s voting rights together with Wang
Fengjiu who held 3.94% and Shao Caimei who held 4.58%. In total Jin Weidong controlled 30.21% of
the Company’s voting rights he is the actual controller of the Company.V. Implementation of Share Repurchase during the Reporting Period
Name of share repurchase plan 2024 second share repurchase plan by way ofcentralized bidding
Disclosure date of the repurchase plan October 30 2024
Proposed number of shares to be repurchased
and percentage of total share capital 9174311–18348623 shares; 1.00% – 2.00%
Proposed repurchase amount RMB 100 million-200 million
Planned repurchase period No more than 12 months from the date of approval bythe Board of Directors
Purpose of repurchase For conversion of the Company’s convertible bonds
Number of shares repurchased 17303064 shares
Percentage of repurchased shares in the
underlying shares under the equity incentive N/A
plan if applicable (%)
Progress of the Company’s sale of repurchased
shares by way of centralized bidding N/A
VI. Situation Related to Preferred Shares
Not applicable
78 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Section VII Corporate Bond
I. Corporate Convertible Bonds
1. Issuance of convertible bonds
With the approval of the China Securities Regulatory Commission the Company publicly issued 15
million convertible bonds on April 22 2022 at an issue price of RMB 100.00 per bond with a total
issuance amounting to RMB 1.5 billion and a term of six years. The Company’s convertible bonds were
approved for listing and commenced trading on the Shanghai Stock Exchange on May 18 2022 under
the bond name “Wellhope Convertible Bond” and bond code “113647”.
2. Convertible bondholders and guarantors during the reporting period
Name of convertible bonds Wellhope convertible bond
Number of convertible bondholders at the end of the period 4787
Guarantors of the Company's convertible bonds Not applicable
The top ten convertible bondholders are set out below:
Bonds held at
Name of bondholders period end Percentage %
(RMB)
China Merchants Bank Co. Ltd. – Bosera CSI Convertible Bond and
Exchangeable Bond ETF 98527000 6.72
Agricultural Bank of China Limited – China Post & Capital Ruixin
Enhanced Bond Securities Investment Fund 63020000 4.30
China Minsheng Banking Corp. Ltd. – Invesco Great Wall Jingtai
Pure Bond Securities Investment Fund 62560000 4.26
Bank of Beijing Co. Ltd. – Invesco Great Wall Jingyi Fengli Bond
Securities Investment Fund 60402000 4.12
Industrial and Commercial Bank of China Limited – Zhongou
Convertible Bond Securities Investment Fund 38011000 2.59
CITIC Securities Co. Ltd. – HFT SSE Investment Grade Convertible
Bond and Exchangeable Bond ETF 36645000 2.50
China Asset Management Yannianshou No. 9 Fixed Income Pension
Product – China Merchants Bank Co. Ltd. 32230000 2.20
Basic Pension Insurance Fund Portfolio 107 29624000 2.02
CITIC Securities Asset Management – China CITIC Bank – CITIC
Securities Asset Management Convertible Bond Profit Enhancement 26228000 1.79
No. 1 Collective Asset Management Plan
Bank of Communications Co. Ltd. – China Post & Capital Stable
Income Bond Securities Investment Fund 25253000 1.72
3. Changes in convertible bonds during the reporting period
RMB
Change (increase or decrease)
Bond name Before change Conversion into
shares Redemption Putback
After change
Wellhope
convertible 1467000000 134000 4000 1466862000
bond
Cumulative conversion of convertible bonds during the reporting period
Name of convertible bond Wellhope convertible bond
Conversion amount during the reporting period
(RMB) 134000
Number of shares converted during the reporting 13264
79 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
period
Cumulative number of shares converted 3229516
Cumulative converted shares as a percentage of
total issued shares before conversion (%) 0.35
Outstanding unconverted amount (RMB) 1466862000
Unconverted bonds as a percentage of total
convertible bonds issued (%) 97.79
4. Adjustments of the conversion price
RMB
Name of convertible bonds Wellhope convertible bond
Conversion price Conversion price
adjustment date after adjustment Disclosure time Disclosure media Explanation
Securities Journal Due to the
Shanghai Securities buy-back and
June 23 2022 10.26 June 20 2022 News Securities
cancellation of
Times and SSE 5.74 million
website restricted
(www.sse.com.cn) shares by theCompany
Securities Journal Due to the
Shanghai Securities implementation
May 26 2023 10.14 May 22 2023 News Securities
of the
Times and SSE Company’s
website 2022 annual
(www.sse.com.cn) cash dividenddistribution
Securities Journal Due to the
Shanghai Securities implementation
June 10 2025 10.09 June 4 2025 News Securities
of the
Times and SSE Company’s
website 2024 annual
(www.sse.com.cn) cash dividenddistribution
Latest conversion price at the end of
the reporting period 10.09
5. The Company’s liabilities credit rating changes and cash arrangements for debt repayment in
future years
A. Liabilities
As of the end of the reporting period the Company’s total liabilities amounted to RMB 10.231 billion
including RMB 6.105 billion in current liabilities and RMB 4.126 billion in non-current liabilities. The
asset-liability ratio was 56.28%.B. Credit rating changes
During the reporting period United Credit Ratings Co. Ltd. issued the 2024 Follow-up Credit Rating
Report on the Public Issuance of Convertible Corporate Bonds by Wellhope Foods Co. Ltd. on June 25
2025. According to the report the Company’s credit rating was AA and the credit rating of “WellhopeConvertible Bond” was also AA both with a stable outlook. The ratings remained unchanged from the
previous assessment.C. Cash arrangements for debt repayment in future years
80 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
The principal and interest payments for the Company’s convertible bonds in future years will primarily
be funded by cash flows generated from its operating activities. The Company maintained a sound debt
repayment record and had no overdue bank loan repayments.
81 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Section VIII Financial Statements
I. Audit Report
Audit Report
RSM China Audit Report No. [2026]110Z0188
To all shareholders of Wellhope Foods Co. Ltd.I. Opinion
We have audited the financial statements of Wellhope Foods Co. Ltd. (hereinafter referred to as "the
Company") which comprise the consolidated and parent company balance sheets as of December 31
2025 and the consolidated and parent company income statements cash flow statements and statements
of changes in owners’ equity for the year then ended together with the notes to the financial statements.In our opinion the accompanying financial statements have been prepared in all material respects in
accordance with the Accounting Standards for Business Enterprises and present fairly the consolidated
and parent company financial position of the Company as of December 31 2025 and the consolidated
and parent company results of operations and cash flows for the year then ended.II. Basis for Opinion
We conducted our audit in accordance with the Chinese Standards on Auditing. Our responsibilitiesunder those standards are further described in the section “Auditor’s Responsibilities for the Audit of theFinancial Statements” of this report. We are independent of the Company in accordance with the Code
of Ethics for Chinese Certified Public Accountants and the Independence Standards for Chinese
Certified Public Accountants including the independence requirements applicable to audits of financial
statements of public interest entities. We have also fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in 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
express a separate opinion on these matters.A. Revenue recognition
1. Description of the matter
In 2025 the Company recorded operating revenue of RMB 35.762 billion representing an increase of
9.88% over the prior year. Revenue from the feed business increased by 7.60% revenue from the broiler
business increased by 42.73% revenue from the swine business increased by 6.86% while revenue from
the raw material trading business decreased by 63.19% over the prior year. As operating revenue is one
of the Company’s key performance indicators we identified revenue recognition as a key audit matter.See Note VII. 61 to the financial statements.
82 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
2. How the matter was addressed in the audit
Our audit procedures mainly included the following:
(1) Understanding and evaluating the design of internal controls over the Company’s sales process and
testing the operating effectiveness of key controls including those related to revenue recognition;
(2) Inspecting sales contracts on a sample basis to identify the contractual rights and obligations
evaluating when the performance obligations were satisfied and assessing whether the judgment on
transfer of control in relation to revenue recognition complied with the Company’s accounting policies
and the Accounting Standards for Business Enterprises;
(3) Performing analytical procedures to identify any significant or unusual fluctuations investigate the
reasons for such fluctuations and assess the reasonableness of changes in operating revenue and gross
profit;
(4) Performing the following procedures on operating revenue on a sample basis primarily to test its
occurrence and cut-off assertions:
(a) Inspecting supporting documents related to revenue recognition including sales contracts sales
orders invoices and customer pick-up notes;
(b) Performing confirmation procedures to confirm accounts receivable balances and operating revenue
amounts;
(c) Performing cut-off testing on operating revenue recognized before and after the balance sheet date to
evaluate whether revenue was recognized in the appropriate period.Based on the procedures performed we noted no exceptions in the recognition of operating revenue.B. Investment income from long-term equity investments accounted for using the equity method
1. Description of the matter
In the current period the Company recognized income of RMB 64.5980 million from long-term equity
investments accounted for using the equity method representing a decrease of RMB 65.2592 million
from the prior year. As investment income recognized under the equity method had a significant impact
on the Company’s financial statements we identified this matter as a key audit matter. See Note VII. 68
to the financial statements.
2. How the matter was addressed in the audit
Our audit procedures mainly included the following:
(1) Understanding and evaluating the design and implementation of the Company’s internal controls
related to the recognition of investment income under the equity method;
(2) Obtaining the articles of association investment agreements and other relevant documents of the
investees to assess whether the Company had significant influence over them and whether the
accounting method adopted was appropriate;
(3) Inquiring of management about the reasons for significant or unusual fluctuations in investment
income and assessing the reasonableness of such explanations;
(4) Obtaining the financial statements of the investees and reviewing the accuracy of adjustments for
unrealized profits from related-party transactions the calculation of investment income and the
83 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company’s share of changes in net assets;
(5) Performing analytical procedures on the operating revenue costs and inventories of investees that
contributed significant investment income in the current period and obtaining and inspecting detailed
schedules and related supporting documents provided by the investees.Based on the procedures performed we noted no exceptions in the recognition of investment income
from long-term equity investments.IV. Other Information
The management of Wellhope Foods Co. Ltd. (hereinafter referred to as “management”) is responsible
for the other information. The other information comprises the information included in the Company’s
2025 Annual Report but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.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 the knowledge we obtained during the audit or otherwise appears to be
materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the other
information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for Financial Statements
The management is responsible for the preparation and fair presentation of the financial statements in
accordance with the Accounting Standards for Business Enterprises and for designing implementing
and maintaining such internal control as management determines is necessary to enable the preparation
of financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements management is responsible for assessing the Company’s ability to
continue as a going concern disclosing as applicable matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or cease
operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting
process.VI. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement whether due to fraud or error and to issue an auditor’s report that
includes our audit opinion. Reasonable assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with auditing standards will always detect a material misstatement
when it exists. Misstatements may arise from fraud or error and are generally considered material if
individually or in the aggregate they could reasonably be expected to influence the economic decisions
of users made on the basis of these financial statements.In conducting an audit in accordance with auditing standards we exercise professional judgment and
84 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
maintain professional skepticism throughout the audit. We also perform the following procedures:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error; design and perform audit procedures responsive to those risks; and obtain audit evidence
that is sufficient and appropriate to provide a basis for our audit opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than that resulting from error as fraud may involve
collusion forgery intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design appropriate audit
procedures.
(3) Evaluate the appropriateness of accounting policies used by management and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern assumption. Based on
the audit evidence obtained we also conclude whether a material uncertainty exists related to events or
conditions that may cast significant doubt on Wellhope Foods Co. Ltd.’s ability to continue as a going
concern. If we conclude that a material uncertainty exists auditing standards require us to draw users’
attention in our auditor’s report to the related disclosures in the financial statements or if such
disclosures are inadequate to issue a modified opinion. Our conclusions are based on the information
available up to the date of our auditor’s report. However future events or conditions may cause
Wellhope Foods Co. Ltd. to be unable to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the
financial statements fairly present the underlying transactions and events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or
business activities within Wellhope Foods Co. Ltd. to express an audit opinion on the financial
statements. We are responsible for the direction supervision and performance of the group audit and
remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned audit
scope and timing and significant audit findings including any noteworthy deficiencies in internal
control that we identify during the audit.From the matters communicated with those charged with governance we determine those matters that
were of most significance in the audit of the financial statements for the current period and therefore
constitute key audit matters. We describe these matters in our auditor’s report unless laws or regulations
prohibit public disclosure of such matters or in extremely rare circumstances we determine that a
matter should not be communicated in the auditor’s report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
85 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
RSM CHINA CPA LLP Certified Public Accountant (China): Wu Yu
(Engagement Partner)
Certified Public Accountant (China): Zhao Songhe
Certified Public Accountant (China): Zhang Yuanyuan
Beijing China April 28 2026
86 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
II. Financial Statements
Consolidated Balance Sheet
December 31 2025
RMB
Item Dec. 31 2025 Dec. 31 2024
Current assets:
Cash and bank balances 1720159136.73 1794235141.02
Financial assets held for trading 904884.08
Derivative financial assets 6473245.85 2441832.40
Notes receivable 3301161.04 27893377.89
Accounts receivable 990779360.73 893154885.76
Receivables financing 56826264.52 9139184.14
Prepayments 376982640.33 262395498.70
Other receivables 127508002.69 69263268.24
Inventories 3616985768.42 2809039422.59
Contract assets 339080.00 628713.20
Other current assets 193835129.93 144952159.05
Total current assets 7093189790.24 6014048367.07
Non-current assets:
Long-term equity investment 2068196281.02 2484323621.63
Investments in other equity instruments 313077.21 163722.78
Investment properties 222400414.95 23980919.68
Fixed assets 5680220459.27 4307643182.96
Construction in progress 284606615.03 189068183.70
Productive biological assets 246509413.75 216354910.60
Right-of-use assets 706103835.02 547493899.54
Intangible assets 562658708.42 393245823.31
Goodwill 29876858.44 19864604.90
Long-term deferred expenses 84139658.92 65401006.07
Deferred tax assets 49902321.13 68833034.84
Other non-current assets 1151511996.81 552101624.23
Total non-current assets 11086439639.97 8868474534.24
Total assets 18179629430.21 14882522901.31
Current liabilities:
Short-term borrowings 1860677880.49 567278990.41
Financial liabilities held for trading 7718239.77
Accounts payable 2197894265.86 1629553678.79
Contract liabilities 330822123.20 281430591.89
Employee compensation payable 314143734.86 240573782.76
Taxes payable 68496355.86 56466910.36
Other payables 838083095.78 638629689.02
Including: Interest payable 15562476.40 10369863.01
Current portion of non-current liabilities 476613275.31 497542789.55
Other current liabilities 10741773.29 8223061.85
Total current liabilities 6105190744.42 3919699494.63
Non-current liabilities:
Long-term loans 2071414535.29 1444154268.34
Bonds payable 1386717739.62 1349079789.00
Lease liabilities 548934023.10 420845598.26
Long-term payables 30577766.07 94867723.87
Deferred income 83194661.21 75291554.80
Deferred tax liabilities 5400611.24 1185667.86
Total non-current liabilities 4126239336.53 3385424602.13
87 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Total Liabilities 10231430080.95 7305124096.76
Owners' equity (or shareholders' equity):
Paid-in capital (or share capital) 912491133.00 919434448.00
Other equity instruments 233649597.78 233670941.96
Capital reserves 747109091.65 808038213.37
Less: Treasury shares 415954186.93 425931323.30
Other comprehensive income -60167190.97 -39649855.09
Surplus reserves 474685527.73 474685527.73
Undistributed profits 4727242083.79 4724940370.20
Equity attributable to owners of the parent
company 6619056056.05 6695188322.87
Non-controlling interests 1329143293.21 882210481.68
Total owners' equity (or shareholders' equity) 7948199349.26 7577398804.55
Total liabilities and owners' equity (or
shareholders' equity) 18179629430.21 14882522901.31
88 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Parent Company Balance Sheet
December 31 2025
RMB
Item Dec. 31 2025 Dec. 31 2024
Current assets:
Cash and bank balances 1434292270.32 1670844671.81
Derivative financial assets 4509370.00
Accounts receivable 33067857.83 65913288.04
Prepayments 48367.07 732811.68
Other receivables 2748722670.77 2235085491.40
Including: Interest receivable
Dividends receivable 16541119.77 19052119.77
Inventories 52427633.03 66261344.18
Total current assets 4273068169.02 4038837607.11
Non-current assets:
Long-term equity investments 7390438814.92 6485005782.44
Investments in other equity instruments 824093.95 717064.49
Fixed assets 109470614.50 118662128.54
Construction in progress 5484692.80
Intangible assets 24133245.04 19967998.28
Long-term deferred expenses 759914.84 1465672.77
Deferred tax assets 8951503.99 12569724.20
Other non-current assets 996000.00 990000.00
Total non-current assets 7535574187.24 6644863063.52
Total assets 11808642356.26 10683700670.63
Current liabilities:
Short-term borrowings 736235150.53 270173790.32
Financial liabilities held for trading 7718239.77
Accounts payable 27396344.76 31540843.42
Advances from customers 5188.00
Contract liabilities 3317957.63 2989164.65
Employee compensation payable 11531582.00 13118898.87
Taxes payable 1115700.55 3620439.89
Other payables 3235191572.17 2869019473.66
Including: Interest payable 15562476.40 10369863.01
Current portion of non-current liabilities 236523473.28 288300000.00
Total current liabilities 4259030020.69 3478767798.81
Non-current liabilities:
Long-term loans 1343370652.78 1034598752.69
Bonds payable 1386717739.62 1349079789.00
Deferred income 30079693.33 34577340.00
Total non-current liabilities 2760168085.73 2418255881.69
Total liabilities 7019198106.42 5897023680.50
Owners' equity (or shareholders' equity):
Paid-in capital (or share capital) 912491133.00 919434448.00
Other equity instruments 233649597.78 233670941.96
Capital reserves 764729619.78 821935606.00
Less: Treasury shares 415954186.93 425931323.30
Other comprehensive income -50949038.65 -30252649.01
Surplus reserves 474685527.73 474685527.73
Undistributed profits 2870791597.13 2793134438.75
Total owners' equity (or shareholders' equity) 4789444249.84 4786676990.13
Total liabilities and owners' equity 11808642356.26 10683700670.63
89 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Consolidated Income Statement
January-December 2025
RMB
Item 2025 2024
1. Total operating revenue 35761520925.94 32545260037.87
Including: Operating revenue 35761520925.94 32545260037.87
2. Total operating costs 35552633766.60 32083825709.63
Including: Operating costs 33692727698.13 30447129165.17
Taxes and surcharges 78217957.86 56989743.36
Selling expenses 787367067.70 709944370.21
Administrative expenses 750725563.66 672530023.01
R&D expenses 28824671.65 29041137.57
Financial expenses 214770807.60 168191270.31
Including: Interest expense 213400859.71 181050699.18
Interest income 6113431.52 12294655.57
Add: Other income 32361957.15 38455461.52
Investment income 182033495.58 137700522.64
Including: Investment income from
associates and joint ventures 64598021.61 129857217.55
Gains or losses from changes in fair value 1160721.24 -147128.24
Credit impairment losses -59717545.66 -141911879.37
Asset impairment losses -225484767.78 -53274841.91
Gains or losses from disposal of assets 1637903.85 1358138.02
3. Operating profit 140878923.72 443614600.90
Add: Non-operating income 33712109.30 26553761.91
Less: Non-operating expenses 40829153.80 76264332.73
4. Pretax profit 133761879.22 393904030.08
Less: Income tax expense 137079133.32 83607979.72
5. Net profit -3317254.10 310296050.36
A. Classified by continuity of operations
1. Net profit from continuing operations -3317254.10 310296050.36
B. Classified by ownership attribution
1. Net profit attributable to owners of the parent
company 52516855.05 342468141.14
2. Profit or loss attributable to non-controlling
interests -55834109.15 -32172090.78
6. Other comprehensive income net of tax -20587890.14 -14423278.24
A. Other comprehensive income attributable to
owners of the parent company net of tax -20517335.88 -15772791.06
1. Other comprehensive income that will not be
reclassified to profit or loss 335754.43 -14642433.23
(1) Changes arising from remeasurement of
90 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
defined benefit plans
(2) Other comprehensive income under the equity
method that will not be reclassified to profit or
loss
(3) Changes in fair value of investments in other
equity instruments 335754.43 -14642433.23
(4) Changes in fair value attributable to the
entity’s own credit risk
2. Other comprehensive income that will be
reclassified to profit or loss -20853090.31 -1130357.83
(1) Other comprehensive income under the equity
method that can be reclassified to profit or loss -20766432.53 -2832988.68
(2) Changes in fair value of other debt
investments
(3) Amount of financial assets reclassified to other
comprehensive income
(4) Provision for credit impairment of other debt
investments
(5) Cash flow hedge reserve
(6) Exchange differences on translation of foreign
currency financial statements -86657.78 1702630.85
B. Other comprehensive income attributable to
non-controlling interests net of tax -70554.26 1349512.82
7. Total comprehensive income -23905144.24 295872772.12
Attributable to owners of the parent company 31999519.17 326695350.08
Attributable to non-controlling interests -55904663.41 -30822577.96
8. Earnings per share
(1) Basic earnings per share (RMB per share) 0.06 0.38
(2) Diluted earnings per share (RMB per share) 0.06 0.38
91 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Parent Company Income Statement
January-December 2025
RMB
Item 2025 2024
1. Operating revenue 711187600.05 682050134.44
Less: Operating costs 532575952.09 509845631.64
Taxes and surcharges 2476013.23 2101403.14
Selling expenses 15066516.44 16337920.76
Administrative expenses 68428944.79 67520705.89
R&D expenses 22800182.30 22135865.78
Financial expenses 67744252.72 52649924.21
Including: Interest expense 114457863.20 115157179.78
Interest income 49506300.68 62747413.27
Add: Other income 7131598.65 8884658.25
Investment income 183692421.84 167225085.53
Including: Investment income from associates and
joint ventures 57092087.90 117945879.18
Gains or losses from changes in fair value 317218.30
Credit impairment losses -54134023.90 56957.96
Gains or losses from disposal of assets 34097.28 -221245.41
2. Operating profit 139137050.65 187404139.35
Add: Non-operating income 1374741.00 848736.59
Less: Non-operating expenses 4640588.10 5211244.12
3. Pretax profit 135871203.55 183041631.82
Less: Income tax expense 7998903.71 6413164.23
4. Net profit 127872299.84 176628467.59
Net profit from continuing operations 127872299.84 176628467.59
5. Other comprehensive income net of tax -20696389.64 -6903949.78
A. Other comprehensive income that will not be
reclassified to profit or loss 107029.46 -4096952.57
(1) Changes arising from remeasurement of defined
benefit plans
(2) Other comprehensive income under the equity
method that will not be reclassified to profit or loss
(3) Changes in fair value of investments in other
equity instruments 107029.46 -4096952.57
(4) Changes in fair value attributable to the entity’s
own credit risk
B. Other comprehensive income that will be
reclassified into profit or loss -20803419.10 -2806997.21
(1) Other comprehensive income under the equity
method that can be reclassified to profit or loss -20803419.10 -2806997.21
6. Total comprehensive income 107175910.20 169724517.81
92 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Consolidated Cash Flow Statement
January-December 2025
RMB
Item 2025 2024
1. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 41784940439.42 34340820896.67
Tax refunds received 43540646.31 39211390.72
Other cash received relating to operating activities 416763289.25 393298565.50
Subtotal of cash inflows from operating activities 42245244374.98 34773330852.89
Cash paid for purchase of goods and receipt of services 38058518445.54 30793203529.15
Cash paid to and on behalf of employees 2191460601.57 1669334296.14
Cash paid for taxes and surcharges 225334200.04 199057582.61
Other cash payments relating to operating activities 1088834719.92 934834948.46
Subtotal of cash outflows from operating activities 41564147967.07 33596430356.36
Net cash flows from operating activities 681096407.91 1176900496.53
2. Cash flows from investing activities:
Cash received from recovery of investments 39910156.53 13000000.00
Cash received from investment income 33523284.91 16941434.70
Net cash received from disposal of fixed assets intangible
assets and other long-term assets 24106437.78 10336063.55
Other cash received relating to investing activities 39213618.09 2409207.07
Subtotal of cash inflows from investing activities 136753497.31 42686705.32
Cash paid for acquisition and construction of fixed assets
intangible assets and other long-term assets 652916291.69 393119573.96
Cash paid for investments 98211545.53 81986951.00
Net cash paid for acquisition of subsidiaries and other business
units 418435731.37 234461.47
Other cash payments relating to investing activities 6744972.54 15623864.47
Subtotal of cash outflows from investing activities 1176308541.13 490964850.90
Net cash flows from investing activities -1039555043.82 -448278145.58
3. Cash flows from financing activities:
Cash received from capital contributions 97469000.00 110268965.00
Including: Cash received by subsidiaries from capital
contributions by non-controlling interests 97469000.00 38170000.00
Cash received from borrowings 3251069987.68 1903088118.55
Other cash received relating to financing activities 27931905.09 17306056.53
Subtotal of cash inflows from financing activities 3376470892.77 2030663140.08
Cash paid for repayment of debts 2524056614.62 2318304866.68
Cash paid for distribution of dividends or profits or payment of
interest 205224036.41 120402126.46
Including: Dividends or profits paid by subsidiaries to
non-controlling interests 27001111.08 23455436.28
Other cash payments relating to financing activities 346884786.98 469309166.46
Subtotal of cash outflows from financing activities 3076165438.01 2908016159.60
Net cash flows from financing activities 300305454.76 -877353019.52
4. Effect of changes in foreign exchange rates on cash and
cash equivalents -1156516.06 2187985.53
93 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
5. Net increase in cash and cash equivalents -59309697.21 -146542683.04
Add: Opening balance of cash and cash equivalents 1748491877.60 1895034560.64
6. Closing balance of cash and cash equivalents 1689182180.39 1748491877.60
94 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Parent Company Cash Flow Statement
January-December 2025
RMB
Item 2025 2024
1. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 746496357.55 646385106.67
Tax refunds received
Other cash received relating to operating activities 5781719.11 24648667.48
Subtotal of cash inflows from operating activities 752278076.66 671033774.15
Cash paid for purchase of goods and receipt of services 514371985.05 503976806.39
Cash paid to and on behalf of employees 68225494.46 62823017.91
Cash paid for taxes and surcharges 10918490.90 17650510.92
Other cash payments relating to operating activities 42652160.06 46024888.98
Subtotal of cash outflows from operating activities 636168130.47 630475224.20
Net cash flows from operating activities 116109946.19 40558549.95
2. Cash flows from investing activities:
Cash received from recovery of investments 42240536.03 39518868.83
Cash received from investment income 152644003.74 82353110.06
Net cash received from disposal of fixed assets intangible
assets and other long-term assets 4100.00 80680.00
Other cash received relating to investing activities 4350000.00 502266851.90
Subtotal of cash inflows from investing activities 199238639.77 624219510.79
Cash paid for acquisition and construction of fixed assets
intangible assets and other long-term assets 2921876.98 3013759.80
Cash paid for investments 876377907.85 183161464.03
Other cash payments relating to investing activities 219791856.95
Subtotal of cash outflows from investing activities 1099091641.78 186175223.83
Net cash flows from investing activities -899853002.01 438044286.96
3. Cash flows from financing activities:
Cash received from capital contributions 72098965.00
Cash received from borrowings 1268590000.00 1170000000.00
Other cash received relating to financing activities 14481905.09 1591861.08
Subtotal of cash inflows from financing activities 1283071905.09 1243690826.08
Cash paid for repayment of debts 545894568.67 1386600000.00
Cash paid for distribution of dividends or profits or payment of
interest 121120269.61 67010349.19
Other cash payments relating to financing activities 50000000.00 310000000.00
Subtotal of cash outflows from financing activities 717014838.28 1763610349.19
Net cash flows from financing activities 566057066.81 -519919523.11
4. Effect of changes in foreign exchange rates on cash and
cash equivalents 26.85 160.65
5. Net increase in cash and cash equivalents -217685962.16 -41316525.55
Add: Opening balance of cash and cash equivalents 1641026300.69 1682342826.24
6. Closing balance of cash and cash equivalents 1423340338.53 1641026300.69
95 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Consolidated Statement of Changes in Owners’ Equity
January-December 2025
RMB
2025
Equity attributable to owners of the parent company
Item Paid-in capital Other equity Other Non-controlling Total owners'
(or share instruments Capital Less: Treasuryreserves shares comprehensive
Surplus Undistributed interests equity
capital) reserves profits
Subtotal
Other income
1. Closing
balance of prior 919434448.00 233670941.96 808038213.37 425931323.30 -39649855.09 474685527.73 4724940370.20 6695188322.87 882210481.68 7577398804.55
period
Add: Changes in
accounting
policies
Correction of
prior-period
errors
Other
2. Opening
balance of current 919434448.00 233670941.96 808038213.37 425931323.30 -39649855.09 474685527.73 4724940370.20 6695188322.87 882210481.68 7577398804.55
period
3. Changes
during the period -6943315.00 -21344.18 -60929121.72 -9977136.37 -20517335.88 2301713.59 -76132266.82 446932811.53 370800544.71
A. Total
comprehensive -20517335.88 52516855.05 31999519.17 -55904663.41 -23905144.24
income
B. Capital
contributions and
reductions by -6943315.00 -21344.18 -60929121.72 -9977136.37 -57916644.53 532778586.02 474861941.49
owners
a. Ordinary
shares
contributed by -6956579.00 -59487033.37 -9977136.37 -56466476.00 533536807.51 477070331.51
owners
b. Capital
contributed by
holders of other 13264.00 -21344.18 149400.12 141319.94 141319.94
equity
instruments
c. Amount of
share-based
payments 1573617.48 1573617.48 158608.11 1732225.59
recognized in
owners’ equity
96 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
d. Other -3165105.95 -3165105.95 -916829.60 -4081935.55
C. Profit
distribution -50215141.46 -50215141.46 -29941111.08 -80156252.54
a. Appropriation
to surplus
reserves
b. Appropriation
to general risk
reserves
c. Distributions to
owners (or -50215141.46 -50215141.46 -29941111.08 -80156252.54
shareholders)
d. Other
D. Internal
transfer within
owners’ equity
a. Other
comprehensive
income
transferred to
retained earnings
4. Closing
balance of current 912491133.00 233649597.78 747109091.65 415954186.93 -60167190.97 474685527.73 4727242083.79 6619056056.05 1329143293.21 7948199349.26
period
2024
Equity attributable to owners of the parent company
Item Paid-in capital Other equity Other Non-controlling Total owners'
Less: Treasury Surplus Undistributed
(or share instruments Capital reserves comprehensive Subtotal interests equity
shares reserves profits
capital) Other income
1. Closing
balance of prior 919433663.00 233672216.24 872912049.17 200003612.37 -23877064.04 457022680.97 4400135075.82 6659295008.79 956130680.23 7615425689.02
period
Add: Changes in
accounting
policies
Other
2. Opening
balance of 919433663.00 233672216.24 872912049.17 200003612.37 -23877064.04 457022680.97 4400135075.82 6659295008.79 956130680.23 7615425689.02
current period
3. Changes
during the 785.00 -1274.28 -64873835.80 225927710.93 -15772791.05 17662846.76 324805294.38 35893314.08 -73920198.55 -38026884.47
period
A. Total
comprehensive -15772791.05 342468141.14 326695350.09 -30822577.96 295872772.13
97 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
income
B. Capital
contributions
and reductions 785.00 -1274.28 -64873835.80 225927710.93 -290802036.01 -21149217.68 -311951253.69
by owners
a. Ordinary
shares
contributed by -66617313.16 225927710.93 -292545024.09 -12750079.48 -305295103.57
owners
b. Capital
contributed by
holders of other 785.00 -1274.28 7817.67 7328.39 7328.39
equity
instruments
c. Amount of
share-based
payments
recognized in
owners’ equity
d. Other 1735659.69 1735659.69 -8399138.20 -6663478.51
C. Profit
distribution 17662846.76 -17662846.76 -21948402.91 -21948402.91
a. Appropriation
to surplus 17662846.76 -17662846.76
reserves
b. Appropriation
to general risk
reserves
c. Distributions
to owners (or -21948402.91 -21948402.91
shareholders)
d. Other
D. Internal
transfer within
owners’ equity
a. Other
comprehensive
income
transferred to
retained
earnings
4. Closing
balance of 919434448.00 233670941.96 808038213.37 425931323.30 -39649855.09 474685527.73 4724940370.20 6695188322.87 882210481.68 7577398804.55
current period
98 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Parent Company Statement of Changes in Owners’ Equity
January-December 2025
RMB
2025
Other equity
Item Paid-in capital Otherinstruments Capital Less: Treasury Undistributed Total owners'
(or share capital) Other reserves shares
comprehensive Surplus reserves
income profits equity
1. Closing balance of prior
period 919434448.00 233670941.96 821935606.00 425931323.30 -30252649.01 474685527.73 2793134438.75 4786676990.13
Add: Changes in
accounting policies
Other
2. Opening balance of
current period 919434448.00 233670941.96 821935606.00 425931323.30 -30252649.01 474685527.73 2793134438.75 4786676990.13
3. Changes during the
period -6943315.00 -21344.18 -57205986.22 -9977136.37 -20696389.64 77657158.38 2767259.71
A. Total comprehensive
income -20696389.64 127872299.84 107175910.20
B. Capital contributions
and reductions by owners -6943315.00 -21344.18 -57205986.22 -9977136.37 -54193509.03
a. Ordinary shares
contributed by owners -6956579.00 -59487033.37 -9977136.37 -56466476.00
b. Capital contributed by
holders of other equity 13264.00 -21344.18 149400.12 141319.94
instruments
c. Amount of share-based
payments recognized in 1738333.31 1738333.31
owners’ equity
d. Other 393313.72 393313.72
C. Profit distribution -50215141.46 -50215141.46
a. Appropriation to surplus
reserves
b. Distributions to owners
(or shareholders) -50215141.46 -50215141.46
c. Other
4. Closing balance of
current period 912491133.00 233649597.78 764729619.78 415954186.93 -50949038.65 474685527.73 2870791597.13 4789444249.84
99 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
2024
Item Paid-in capital Other equity
(or share instruments Capital Less: Treasury Other comprehensive Surplus Undistributed Total owners'
capital) Other reserves shares income reserves profits equity
1. Closing balance of
prior period 919433663.00 233672216.24 878828709.67 200003612.37 -23348699.23 457022680.97 2634168817.92 4899773776.20
Add: Changes in
accounting policies
Other
2. Opening balance of
current period 919433663.00 233672216.24 878828709.67 200003612.37 -23348699.23 457022680.97 2634168817.92 4899773776.20
3. Changes during the
period 785.00 -1274.28 -56893103.67 225927710.93 -6903949.78 17662846.76 158965620.83 -113096786.07
A. Total comprehensive
income -6903949.78 176628467.59 169724517.81
B. Capital contributions
and reductions by owners 785.00 -1274.28 -56893103.67 225927710.93 -282821303.88
a. Ordinary shares
contributed by owners -61496032.42 225927710.93 -287423743.35
b. Capital contributed by
holders of other equity 785.00 -1274.28 7817.67 7328.39
instruments
c. Amount of share-based
payments recognized in 1970111.08 1970111.08
owners’ equity
d. Other 2625000.00 2625000.00
C. Profit distribution 17662846.76 -17662846.76
a. Appropriation to
surplus reserves 17662846.76 -17662846.76
b. Distributions to owners
(or shareholders)
c. Other
4. Closing balance of
current period 919434448.00 233670941.96 821935606.00 425931323.30 -30252649.01 474685527.73 2793134438.75 4786676990.13
100 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
III. Basic Information of the Company
1. Company Profile
Wellhope Foods Co. Ltd. (formerly known as Liaoning Wellhope Agri-Tech Co. Ltd. hereinafter
referred to as the “Company”) is a joint stock limited company established by 23 natural persons
including Jin Weidong and Ding Yunfeng with the approval of the People’s Government of Liaoning
Province. The Company was registered and established on March 27 2003 with registered capital of
RMB 53.00 million of which Jin Weidong contributed RMB 12.19 million representing 23.00% of the
share capital; Ding Yunfeng contributed RMB 7.685 million representing 14.50% of the share capital;
Wang Fengjiu Zhang Tiesheng Shao Caimei and Wang Zhongtao each contributed RMB 4.505 million
each representing 8.50% of the share capital; and the other 17 shareholders contributed RMB 15.105
million in total representing 28.50% of the share capital.With the approval of the Ministry of Commerce of the People’s Republic of China the Company issued
5.888889 million shares to De Heus (China) by way of private placement on August 22 2006. The
Company was converted into a foreign-invested joint stock company and its total share capital was
changed to 58.888889 million shares. With the approval of the Liaoning Department of Foreign Trade
and Economic Cooperation the Company issued 3.464052 million shares to De Heus (China) by way of
private placement on November 15 2007. After the capital increase the Company’s total share capital
was 62.352941 million shares.The Company’s second extraordinary general meeting in 2010 approved the capitalization of
undistributed profits into share capital by issuing 50 bonus shares for every 10 shares based on the total
share capital as of December 31 2009. After the capitalization the Company’s total share capital
increased to 374.117646 million shares. The Company’s third extraordinary general meeting in 2010
approved the capitalization of capital reserves into share capital by issuing 100 million shares. After the
capitalization the Company’s total share capital increased to 474.117646 million shares.With the approval of the China Securities Regulatory Commission the Company issued 80 million new
shares at RMB 5.88 per share on August 4 2014. After the initial public offering the Company’s total
share capital was 554.1176 million shares.The Company’s second extraordinary general meeting in 2015 approved the capitalization of capital
reserves into share capital by issuing 5 shares for every 10 shares based on the total share capital as of
June 30 2015. After the capitalization the Company’s total share capital increased to 831.1765 million
shares.The Company’s second extraordinary general meeting in 2018 approved the issuance of 14.575 million
restricted shares to 372 natural persons at RMB 4.85 per share on December 29 2018. After the change
the Company’s total share capital was 845.7515 million shares.With the approval of the China Securities Regulatory Commission the Company made a non-public
issuance of 76.5529 million domestically listed RMB-denominated ordinary shares on April 18 2019.After the change the total share capital was 922.3044 million shares.On March 27 2020 the Company repurchased and cancelled 244500 restricted shares that had been
101 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
granted but whose lock-up restrictions had not yet been lifted. After the change the total share capital
was 922.0599 million shares.On March 24 2021 the Company changed its name to Wellhope Foods Co. Ltd.On May 19 2021 the Company repurchased and cancelled 99700 restricted shares that had been
granted but whose lock-up restrictions had not yet been lifted. After the change the total share capital
was 921.9602 million shares.On June 22 2022 the Company repurchased and cancelled 5.7420 million restricted shares that had
been granted but whose lock-up restrictions had not yet been lifted. After the change the total share
capital was 916.2182 million shares.On April 22 2022 with the approval of the China Securities Regulatory Commission the Companypublicly issued RMB 1.5 billion of convertible corporate bonds abbreviated as “Wellhope ConvertibleBond” with a term of six years. The bonds became convertible into shares from October 28 2022.On April 29 2025 the Company cancelled 6.956579 million repurchased shares held in its dedicated
securities account for repurchased shares. After the change the total share capital was 912.4779 million
shares.As of December 31 2025 the Company’s shares had increased by 3.2295 million cumulatively as a
result of the conversion of convertible bonds into shares and the total share capital after the change was
912.4911 million shares.
The principal activities of the Company and its subsidiaries include the production and sale of feed and
feed additives trading of feed raw materials poultry farming slaughtering and processing livestock
farming processing packaging refrigerated storage and sale of quick-frozen food and processing of
agricultural and sideline products and local specialty products.Registered address (head office address): No. 169 Huishan Street Shenbei New District Shenyang
Liaoning Province PRC.The legal representative is Jin Weidong Chairman of the Board.Date of approval of the financial statements: The financial statements were approved for issuance by
resolution of the Company’s Board of Directors on April 28 2026.IV. Basis of Preparing Financial Statements
1. Basis of preparation
The Company prepares its financial statements on a going concern basis recognizing and measuring
transactions and events based on their actual occurrence in accordance with the Accounting Standards
for Business Enterprises their application guidelines and related interpretations. In addition the
Company discloses financial information in compliance with the Compilation Rule for Information
Disclosure by Companies Offering Securities to the Public No.15 - General Provisions on Financial
Reports (2023 revised) issued by the China Securities Regulatory Commission.
2. Going concern
The Company has evaluated the ability to continue as a going concern for 12 months from the end of the
reporting period and has not identified any factors that would impact its ability to continue as a going
102 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
concern. It is reasonable for the Company to prepare its financial statements on a going concern basis.V. Significant Accounting Policies and Accounting Estimates
Note on specific accounting policies and accounting estimates:
The following significant accounting policies and accounting estimates of the Company have been
formulated in accordance with the Accounting Standards for Business Enterprises. Matters not
specifically mentioned are accounted for in accordance with the relevant accounting policies under the
Accounting Standards for Business Enterprises.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements are in compliance with the requirements of accounting standards for business
enterprises and truly and completely reflect the financial position operating results changes in owners’
equity cash flow and other relevant information of the Company.
2. Accounting period
The accounting year of the Company is from January 1 to December 31 in the calendar year.
3. Operating cycle
The Company’s normal operating cycle is one year.
4. Functional currency
The Company’s functional currency is Renminbi. The functional currency of overseas branches and
subsidiaries is determined based on the currency of the primary economic environment in which they
operate.
5. Method for determining materiality criteria and basis for selection
Item Criteria for materiality
Material receivables for which bad debt provisions are recognized individually RMB 1 million
Material write-offs of receivables RMB 1 million
Material construction in progress RMB 10 million
Material dividends receivable RMB 10 million
6. Accounting treatment of business combinations under common control and not under common
control
(1) Business combination under common control
The assets and liabilities acquired by the Company in a business combination are measured on the
combination date at the book value of the acquiree’s assets and liabilities in the consolidated financial
statements of the ultimate controlling party. Where the acquiree adopts accounting policies or accounting
periods different from those of the Company before the business combination the accounting policies
and accounting periods shall be aligned based on the principle of materiality and the book value of the
acquiree’s assets and liabilities shall be adjusted in accordance with the Company’s accounting policies
and accounting periods. If there is any difference between the book value of the net assets acquired by
the Company in the business combination and the book value of the consideration paid capital reserve
including capital premium or share premium shall be adjusted first. If the balance of capital reserve
including capital premium or share premium is insufficient for offsetting the surplus reserve and
undistributed profit shall be offset in sequence.
103 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
For the accounting treatment of business combinations under common control achieved in stages
through multiple transactions please refer to Note V.7(5).
(2) Business combination not under common control
The identifiable assets and liabilities of the acquiree obtained by the Company in a business combination
are measured at fair value on the acquisition date. Where the acquiree adopts accounting policies or
accounting periods different from those of the Company before the business combination the accounting
policies and accounting periods shall be aligned based on the principle of materiality and the book value
of the acquiree’s assets and liabilities shall be adjusted in accordance with the Company’s accounting
policies and accounting periods. If the Company’s combination cost on the acquisition date exceeds the
net fair value of the identifiable assets and liabilities of the acquiree obtained in the business
combination the difference shall be recognized as goodwill. If the combination cost is less than the net
fair value of the identifiable assets and liabilities of the acquiree obtained in the business combination
the combination cost and the fair value of the acquiree’s identifiable assets and liabilities obtained in the
business combination shall first be reviewed. If after such review the combination cost remains less
than the net fair value of the identifiable assets and liabilities of the acquiree obtained the difference
shall be recognized in profit or loss for the current period.For the accounting treatment of business combinations not under common control achieved in stages
through multiple transactions please refer to Note V.7(5).
(3) Treatment of transaction costs in a business combination
Audit fees legal service fees valuation and consulting fees and other intermediary fees as well as other
related administrative expenses incurred for a business combination shall be recognized in profit or loss
for the current period when incurred. Transaction costs of equity securities or debt securities issued as
consideration for the business combination shall be included in the initial recognition amount of the
equity securities or debt securities.
7. Judgment criteria for control and method of preparing consolidated financial statements
(1) Judgment criteria for control and determination of consolidation scope
Control means that the Company has power over the investee has rights to variable returns from its
involvement with the investee and has the ability to use its power over the investee to affect the amount
of those returns. The definition of control includes three key elements: 1) The investor has power over
the investee. 2) The investor has rights to variable returns from its involvement with the investee. 3) The
investor has the ability to use its power over the investee to affect the amount of returns. When the
Company’s investment in the investee meets these three elements it indicates that the Company has
control over the investee.The scope of consolidation in the consolidated financial statements is determined based on control and
includes not only subsidiaries determined by voting rights or similar rights alone or in combination with
other arrangements but also structured entities determined by one or more contractual arrangements.A subsidiary refers to an entity controlled by the Company including enterprises separable parts of an
investee and structured entities controlled by the Company. A structured entity refers to an entity
104 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
designed in such a way that voting rights or similar rights are not the deciding factor in determining its
controlling party (Note: sometimes also called a special purpose entity).
(2) Method of preparing consolidated financial statements
The Company prepares consolidated financial statements based on the financial statements of the
Company and its subsidiaries and other relevant information.In preparing consolidated financial statements the Company treats the entire enterprise group as an
accounting entity and in accordance with the requirements for recognition measurement and
presentation of relevant enterprise accounting standards and based on unified accounting policies and
periods reflects the overall financial position operating results and cash flows of the enterprise group.* Consolidate the assets liabilities owners’ equity revenue expenses and cash flows of the parent
company and its subsidiaries.* Eliminate the long-term equity investments of the parent company in its subsidiaries against the
portion of owners’ equity held by the parent company in the subsidiaries.* Eliminate the effects of internal transactions between the parent company and its subsidiaries as well
as between subsidiaries. If any relevant assets are impaired as a result of internal transactions the full
amount of the loss shall be recognized.* Adjust special transactions from the perspective of the enterprise group.
(3) Treatment of changes in subsidiaries during the Reporting Period
* Addition of a subsidiary or business
A. Subsidiaries or businesses acquired in a business combination under common control
(a) When preparing the consolidated balance sheet adjust the opening balances of the consolidated
balance sheet and also adjust the relevant items of the comparative financial statements. It is treated as if
the combined reporting entity had existed since the point when the ultimate controlling party first
obtained control.(b) When preparing the consolidated income statement include the revenue expenses and profits of the
acquired subsidiary or business from the beginning of the period to the end of the Reporting Period in
the consolidated income statement. Also adjust the relevant items of the comparative financial
statements treating the combined reporting entity as if it had existed since the point when the ultimate
controlling party first obtained control.(c) When preparing the consolidated cash flow statement include the cash flows of the acquired
subsidiary or business from the beginning of the period to the end of the Reporting Period in the
consolidated cash flow statement. Also adjust the relevant items of the comparative financial statements
treating the combined reporting entity as if it had existed since the point when the ultimate controlling
party first obtained control.B. Subsidiaries or businesses acquired in a business combination not under common control
(a) When preparing the consolidated balance sheet do not adjust the opening balances of the
consolidated balance sheet.
105 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(b) When preparing the consolidated income statement include the revenue expenses and profits of the
acquired subsidiary or business from the acquisition date to the end of the Reporting Period in the
consolidated income statement.(c) When preparing the consolidated cash flow statement include the cash flows of the acquired
subsidiary or business from the acquisition date to the end of the Reporting Period in the consolidated
cash flow statement.* Disposal of a subsidiary or business
A. When preparing the consolidated balance sheet do not adjust the opening balances of the
consolidated balance sheet.B. When preparing the consolidated income statement include the revenue expenses and profits of the
disposed subsidiary or business from the beginning of the period to the disposal date in the consolidated
income statement.C. When preparing the consolidated cash flow statement include the cash flows of the disposed
subsidiary or business from the beginning of the period to the disposal date in the consolidated cash flow
statement.
(4) Special considerations in consolidation eliminations
* The long-term equity investments held by subsidiaries in the Company shall be treated as treasury
stock and deducted from equity. In the consolidated balance sheet they shall be presented under the
“Equity” item as “Less: treasury stock.”
Long-term equity investments held between subsidiaries shall be eliminated against the corresponding
share of owners’ equity of the relevant subsidiary following the same elimination method as for the
parent company’s equity investments in its subsidiaries.* The “special reserve” and “general risk provision” items since they do not belong to paid-in capital
(or share capital) or capital reserves and are also different from retained earnings and undistributed
profits shall be restored based on the portion attributable to owners of the parent company after
offsetting long-term equity investments against the owners’ equity in subsidiaries
* If offsetting unrealized gains or losses on internal sales results in temporary differences between the
book value of assets and liabilities in the consolidated balance sheet and their tax bases deferred income
tax assets or liabilities shall be recognized in the consolidated balance sheet. Additionally income tax
expense shall be adjusted in the consolidated income statement excluding deferred taxes related to
transactions directly recorded in equity or related to business combinations.* Unrealized gains or losses on internal transactions arising from the sale of assets by the parentcompany to subsidiaries shall be fully eliminated against “Net profit attributable to owners of the parentcompany” in the consolidated income statement. Unrealized gains or losses on internal transactions
arising from the sale of assets by subsidiaries to the parent company shall be allocated and eliminated
between “Net profit attributable to owners of the parent company” and “non-controlling interests’ shareof profit or loss” according to the parent company’s shareholding percentage in the subsidiary.
106 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Unrealized gains or losses on internal transactions arising from the sale of assets between subsidiaries
shall be allocated and eliminated between “Net profit attributable to owners of the parent company” and
“non-controlling interests’ share of profit or loss” based on the parent company’s shareholding
percentage in the selling subsidiary.* If losses for the current period attributable to non-controlling interests exceed their share of the
subsidiary’s equity at the beginning of the period the excess shall still be deducted from non-controlling
interests.
(5) Accounting for special transactions
* Purchase of equity interests held by non-controlling shareholders
When the Company purchases equity interests in a subsidiary held by non-controlling shareholders the
investment cost of the new long-term equity investment acquired from the purchase of non-controlling
interests shall be measured at the fair value of the consideration paid in the individual financial
statements. In the consolidated financial statements the difference between the new long-term equity
investment acquired through the purchase of non-controlling interests and the share of the subsidiary’s
net assets as continuously calculated by the Group from the acquisition date or combination date
corresponding to the new shareholding ratio shall be adjusted to capital reserves including capital
premium or share premium. If capital reserves are insufficient surplus reserves and undistributed profits
shall be offset in sequence.* Obtaining control over a subsidiary in stages through multiple transactions
A. Business combination under common control achieved in stages through multiple transactions
On the combination date in the individual financial statements the initial investment cost of the
long-term equity investment shall be determined based on the share of the book value of the subsidiary’s
net assets in the consolidated financial statements of the ultimate controlling party that the Company
should enjoy after the combination. The difference between the initial investment cost and the sum of the
book value of the long-term equity investment before the combination and the book value of the
consideration newly paid for the additional shares obtained on the combination date shall be adjusted to
capital reserves including capital premium or share premium. If capital reserves are insufficient surplus
reserves and undistributed profits shall be offset in sequence.In the consolidated financial statements the assets and liabilities of the acquiree obtained by the
combining party in the combination shall be measured at their book value in the consolidated financial
statements of the ultimate controlling party on the combination date except for adjustments made due to
differences in accounting policies and accounting periods. The difference between the sum of the book
value of the pre-combination investment and the book value of the consideration newly paid on the
combination date and the book value of the net assets acquired in the combination shall be adjusted to
capital reserves including share premium or capital premium. If capital reserves are insufficient
retained earnings shall be adjusted.For equity investments held by the combining party before obtaining control over the acquiree the
107 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
related profit or loss other comprehensive income and other changes in owners’ equity recognized from
the later of the date of acquisition of the original equity interests and the date on which the combining
party and the acquiree came under the common control of the same ultimate controlling party to the
combination date shall be offset against the opening retained earnings of the comparative financial
statements or profit or loss for the current period respectively.B. Business combination not under common control achieved in stages through multiple transactions
On the acquisition date in the individual financial statements the initial investment cost of the
long-term equity investment shall be the sum of the book value of the pre-existing long-term equity
investment and the new investment cost on the acquisition date.In the consolidated financial statements for the equity interests held in the acquiree before the
acquisition date they shall be remeasured at fair value on the acquisition date. If the equity interests held
before the acquisition date are designated as financial assets measured at fair value with changes
recognized in other comprehensive income the difference between the fair value and their book value
shall be recognized in retained earnings and the cumulative fair value changes previously recognized in
other comprehensive income shall be transferred to retained earnings. If the equity interests held before
the acquisition date are classified as financial assets measured at fair value through profit or loss or as
long-term equity investments accounted for using the equity method the difference between the fair
value and their book value shall be recognized as investment income for the current period. If the equity
interests held before the acquisition date involve other comprehensive income under the equity method
as well as other changes in owners’ equity under the equity method other than net profit or loss other
comprehensive income and profit distribution the related other comprehensive income shall be
accounted for on the same basis as the direct disposal of related assets or liabilities by the investee and
other changes in owners’ equity related thereto shall be reclassified to investment income in the period in
which the acquisition date falls.* Disposal of long-term equity investment in a subsidiary without losing control
When the parent company disposes of part of its long-term equity investment in a subsidiary without
losing control in the consolidated financial statements the difference between the disposal consideration
and the share of the subsidiary’s net assets continuously calculated from the acquisition date or
combination date corresponding to the disposed long-term equity investment shall be adjusted to capital
reserves including capital premium or share premium. If capital reserves are insufficient retained
earnings shall be adjusted.* Disposal of long-term equity investment in a subsidiary and loss of control
A. Disposal in a single transaction
If the parent company loses control over the investee due to the disposal of part of its equity investment
or other reasons in preparing the consolidated financial statements the remaining equity shall be
remeasured at its fair value on the date of loss of control. The difference between the sum of the
consideration received from the disposal of the equity interests and the fair value of the remaining equity
less the sum of the share of the former subsidiary’s net assets continuously calculated from the
108 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
acquisition date or combination date based on the original shareholding ratio and goodwill shall be
recognized as investment income in the period in which control is lost.Other comprehensive income related to the equity investment in the former subsidiary shall be
accounted for on the same basis as the direct disposal of the related assets or liabilities by the former
subsidiary upon loss of control. Other changes in owners’ equity under the equity method related to the
former subsidiary shall be transferred to profit or loss for the current period upon loss of control.B. Disposal in stages through multiple transactions
In the consolidated financial statements it shall first be determined whether the transactions effected in
stages constitute a single arrangement.If the transactions effected in stages do not constitute a single arrangement in the individual financial
statements for each transaction before losing control of the subsidiary the book value of the long-term
equity investment corresponding to the disposed equity shall be derecognized and the difference
between the consideration received and the book value of the disposed long-term equity investment shall
be recognized in investment income for the current period. In the consolidated financial statements it
shall be handled according to the relevant rules for the disposal of long-term equity investment in a
subsidiary without losing control.If the transactions effected in stages constitute a single arrangement all transactions shall be treated as
one transaction involving the disposal of a subsidiary and the loss of control. In the individual financial
statements the difference between the disposal consideration of each transaction before losing control
and the book value of the long-term equity investment corresponding to the disposed equity shall first be
recognized in other comprehensive income and shall be transferred to profit or loss in the period in
which control is lost. In the consolidated financial statements for each transaction before losing control
the difference between the disposal consideration and the share of the subsidiary’s net assets
corresponding to the disposed investment shall be recognized as other comprehensive income and shall
be transferred to profit or loss in the period in which control is lost.Multiple transactions are generally treated as a single arrangement if the terms conditions and economic
effects of the transactions meet one or more of the following circumstances:
(a) The transactions are entered into simultaneously or with consideration of each other’s impact.(b) The transactions as a whole are aimed at achieving a complete business result.(c) The occurrence of one transaction depends on the occurrence of at least one other transaction.(d) A single transaction would not be economical when considered separately but becomes economical
when considered together with other transactions.* Dilution of the parent company’s ownership interest in a subsidiary due to capital increase by
non-controlling shareholders
When non-controlling shareholders of a subsidiary increase capital in the subsidiary thereby diluting the
parent company’s equity interest in the subsidiary in the consolidated financial statements the
difference between the parent company’s share of the subsidiary’s book net assets before the capital
increase calculated based on its shareholding ratio before the capital increase and its share of the
109 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
subsidiary’s book net assets after the capital increase calculated based on its shareholding ratio after the
capital increase shall be adjusted to capital reserves including capital premium or share premium. If
capital reserves are insufficient retained earnings shall be adjusted.
8. Classification of joint arrangements and accounting treatment of joint operations
A joint arrangement refers to an arrangement jointly controlled by two or more parties. The Company
classifies its joint arrangements as either joint operations or joint ventures.
(1) Joint operations
A joint operation refers to a joint arrangement under which the Company has rights to the assets and
obligations for the liabilities relating to the arrangement.The Company recognizes the following items related to its interests in a joint operation and accounts for
them in accordance with the relevant Accounting Standards for Business Enterprises:
* assets held separately and jointly held assets according to its share;
* liabilities assumed separately and jointly assumed liabilities according to its share;
* revenue from the sale of its share of the output of the joint operation;
* revenue from the sale of the output of the joint operation according to its share;
* expenses incurred separately and expenses incurred by the joint operation according to its share.
(2) Joint ventures
A joint venture refers to a joint arrangement under 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 on equity
method accounting for long-term equity investments.
9. Criteria for determining cash and cash equivalents
Cash refers to the Company’s cash on hand and deposits that are readily available for payment. Cash
equivalents refer to short-term highly liquid investments that are readily convertible into known
amounts of cash and subject to an insignificant risk of changes in value generally with maturities of
three months or less from the date of acquisition.
10. Foreign currency transactions and translation of foreign currency financial statements
(1) Method for determining the exchange rate for foreign currency transactions
At initial recognition of foreign currency transactions the Company translates such transactions into its
functional currency using the spot exchange rate on the transaction date or an exchange rate determined
by a systematic and reasonable method that approximates the spot exchange rate on the transaction date
hereinafter referred to as the approximate spot exchange rate.
(2) Translation method for 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 at
the balance sheet date. Exchange differences arising from differences between the spot exchange rate at
the balance sheet date and the spot exchange rate at initial recognition or at the previous balance sheet
date are recognized in profit or loss for the current period. Foreign currency non-monetary items
110 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
measured at historical cost continue to be translated using the spot exchange rate on the transaction date.For inventories measured at the lower of cost and net realizable value where the inventories are
purchased in a foreign currency and their net realizable value at the balance sheet date is denominated in
a foreign currency the net realizable value is first translated into the functional currency using the spot
exchange rate at the balance sheet date and then compared with the cost of the inventories denominated
in the functional currency to determine the period-end carrying amount of such inventories. Foreign
currency non-monetary items measured at fair value are translated using the spot exchange rate on the
date when the fair value is determined. For financial assets measured at fair value through profit or loss
the difference between the translated functional currency amount and the original functional currency
amount is recognized in profit or loss for the current period. For investments in non-trading equity
instruments designated as measured at fair value through other comprehensive income the difference
between the translated functional currency amount and the original functional currency amount is
recognized in other comprehensive income.
(3) Translation method for foreign currency financial statements
Before translating the financial statements of foreign operations the accounting periods and accounting
policies of the foreign operations are adjusted to align with those of the Company. Financial statements
in the relevant foreign currency are then prepared based on the adjusted accounting policies and
accounting periods. The financial statements of foreign operations are translated as follows:
* Asset and liability items in the balance sheet are translated using the spot exchange rate at the balance
sheet date. Except for “undistributed profits” owners’ equity items are translated using the spot
exchange rate at the time of occurrence.* Income and expense items in the income statement are translated using the spot exchange rate on the
transaction date or the approximate spot exchange rate.* Foreign currency cash flows and cash flows of overseas subsidiaries are translated using the spot
exchange rate on the date of the cash flows or the approximate spot exchange rate. The effect of
exchange rate changes on cash is presented separately in the cash flow statement as a reconciling item.* Translation differences arising from the translation of foreign currency financial statements are
presented under “Other comprehensive income” within owners’ equity in the consolidated balance sheet
when preparing consolidated financial statements.When disposing of a foreign operation and losing control the foreign currency translation differences
related to the foreign operation and presented under owners’ equity in the balance sheet are transferred
in full or in proportion to the disposal of the foreign operation to profit or loss for the period of disposal.
11. Financial instruments
Financial instruments refer to contracts that create financial assets for one party and financial liabilities
or equity instruments for another party.
(1) Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument contract it recognizes the relevant
111 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
financial asset or financial liability.A financial asset shall be derecognized when it satisfies one of the following conditions:
* The contractual right to receive cash flows from the financial asset expires;
* The financial asset has been transferred and the transfer meets the derecognition conditions for
financial asset transfer as described below.A financial liability or part of a financial liability is derecognized when its present obligation has been
discharged. If the Company as borrower enters into an agreement with the lender to replace an original
financial liability with a new financial liability and the contractual terms of the new financial liability
are substantially different from those of the original financial liability the original financial liability is
derecognized and the new financial liability is recognized simultaneously. If the Company makes
substantial modifications to the contractual terms of an original financial liability or part of it the
original financial liability shall be derecognized and a new financial liability shall be recognized based
on the modified terms.Regular way purchases and sales of financial assets are recognized and derecognized on the transaction
date. Regular way purchases and sales of financial assets refer to purchases or sales of financial assets
under contracts whose terms require delivery of the assets within the timeframe established by regulation
or market convention. The transaction date is the date on which the Company commits itself 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 for
managing financial assets and the contractual cash flow characteristics of the financial assets into
financial assets measured at amortized cost financial assets measured at fair value through profit or loss
and financial assets measured at fair value through other comprehensive income. Financial assets shall
not be reclassified after initial recognition unless the Company changes its business model for managing
financial assets in which case all affected financial assets shall be reclassified on the first day of the first
reporting period after the change in the business model.Financial assets are initially measured at fair value. For financial assets measured at fair value through
profit or loss related transaction costs are recognized directly in profit or loss for the current period. For
other categories of financial assets related transaction costs are included in the initial recognition
amount. Notes receivable and accounts receivable arising from the sale of goods or rendering of services
that do not contain or for which the Company does not consider a significant financing component are
initially measured at the transaction price as defined in the revenue standard.The subsequent measurement of financial assets depends on their classification:
* Financial assets measured at amortized cost
A financial asset is classified as measured at amortized cost if both of the following conditions are met:
the Company’s business model for managing the financial asset is to collect contractual cash flows; and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
112 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
payments of principal and interest on the principal amount outstanding. Such financial assets are
subsequently measured at amortized cost using the effective interest method. 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 through other comprehensive income
A financial asset is classified as measured at fair value through other comprehensive income if both of
the following conditions are met: the Company’s business model for managing the financial asset is both
to collect contractual cash flows and to sell financial assets; and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding. 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
for the current period changes in fair value of such financial assets are recognized in other
comprehensive income until the financial asset is derecognized at which time the accumulated gains or
losses are transferred to profit or loss for the current period. However interest income calculated using
the effective interest method is recognized in profit or loss for the current period.The Company irrevocably elects to designate certain non-trading equity instrument investments as
financial assets measured at fair value through other comprehensive income. Only the related dividend
income is recognized in profit or loss for the current period while changes in fair value are recognized
in other comprehensive income. Upon derecognition of such financial assets the accumulated gains or
losses are transferred to retained earnings.* Financial assets measured at fair value through profit or loss
Financial assets other than those classified as financial assets measured at amortized cost or financial
assets measured at fair value through other comprehensive income are classified as financial assets
measured at fair value through profit or loss. Such financial assets are subsequently measured at fair
value with all changes in fair value recognized in profit or loss for the current period.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value through profit
or loss loan commitments to provide loans at below-market interest rates financial guarantee contract
liabilities and financial liabilities measured at amortized cost.The subsequent measurement of financial liabilities depends on their classification:
* Financial liabilities measured at fair value through profit or loss
This category of financial liabilities includes financial liabilities held for trading including derivatives
that are financial liabilities and financial liabilities designated as measured at fair value through profit or
loss. After initial recognition such financial liabilities are subsequently measured at fair value. Except
for those related to hedge accounting gains or losses including interest expense are recognized in profit
or loss for the current period. However for financial liabilities designated as measured at fair value
through profit or loss the amount of changes in fair value attributable to changes in the Company’s own
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credit risk is recognized in other comprehensive income. When the financial liability is derecognized
the accumulated gains or losses previously recognized in other comprehensive income are reclassified
from other comprehensive income to retained earnings.* Loan commitments and financial guarantee contract liabilities
A loan commitment is a commitment made by the Company to provide a loan to a customer under
specified contractual terms within the commitment period. The Company recognizes impairment
provisions for loan commitments under the expected credit loss model.A financial guarantee contract refers to a contract that requires the Company to compensate the contract
holder for a specified amount of loss when a specified debtor fails to repay the debt when due in
accordance with the original or modified terms of the debt instrument. Financial guarantee contract
liabilities are subsequently measured at the higher of the amount of loss provision determined in
accordance with the impairment principles for financial instruments and the balance of the initial
recognition amount less accumulated amortization determined in accordance with the revenue
recognition principles.* Financial liabilities measured at amortized cost
After initial recognition other financial liabilities are subsequently measured at amortized cost using the
effective interest method.Except in special circumstances financial liabilities and equity instruments are distinguished according
to the following principles:
* If the Company cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or
other financial assets the contractual obligation meets the definition of a financial liability. Although
some financial instruments do not explicitly contain terms and conditions requiring the delivery of cash
or other financial assets a contractual obligation may still be indirectly established through other terms
and conditions.* If a financial instrument is or may be settled in the Company’s own equity instruments it is necessary
to consider whether the Company’s own equity instruments used for settlement are a substitute for cash
or other financial assets or whether they are intended to enable the holder of the instrument to enjoy
residual interests in the issuer’s assets after deducting all liabilities. If the former applies the instrument
is a financial liability of the issuer; if the latter applies the instrument is an equity instrument of the
issuer. In certain circumstances a financial instrument contract requires or may require the Company to
settle the financial instrument using its own equity instruments and the amount of the contractual right
or obligation equals the number of own equity instruments to be received or delivered multiplied by their
fair value at settlement. Regardless of whether the amount of the contractual right or obligation is fixed
or varies wholly or partly based on variables other than the market price of the Company’s own equity
instruments such as interest rates commodity prices or prices of financial instruments the contract is
classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
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Derivative financial instruments are initially measured at fair value on the date when the derivative
contract is entered into and are subsequently measured at fair value. A derivative financial instrument
with a positive fair value is recognized as an asset while one with a negative fair value is recognized as
a liability.Except for the effective portion of a cash flow hedge which is recognized in other comprehensive
income and reclassified to profit or loss for the current period 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 the current period.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 on classification of financial assets. If
the host contract is not a financial asset and the hybrid instrument is not measured at fair value through
profit or loss and the embedded derivative is not closely related to the host contract in terms of
economic characteristics and risks and a separate instrument with the same terms as the embedded
derivative would meet the definition of a derivative the embedded derivative is separated from the
hybrid instrument and accounted for as a separate derivative financial instrument. If the fair value of the
embedded derivative cannot be measured separately on the date of acquisition or on subsequent balance
sheet dates the hybrid instrument as a whole is designated as a financial asset or financial liability
measured at fair value through profit or loss.
(5) Impairment of financial instruments
The Company recognizes provisions for expected credit losses for financial assets measured at
amortized cost debt investments measured at fair value through 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 risks of default. Credit loss refers to the difference between all contractual cash flows receivable
by the Company under the contract and all cash flows expected to be received discounted at the original
effective interest rate namely the present value of all cash shortfalls. For purchased or originated
credit-impaired financial assets the Company discounts them using the credit-adjusted effective interest
rate of such financial assets.Lifetime expected credit losses refer to expected credit losses resulting from all possible default events
over the expected life of a financial instrument.
12-month expected credit losses refer to expected credit losses resulting from default events on a
financial instrument that are possible within 12 months after the balance sheet date or within the
expected life if the expected life of the financial instrument is less than 12 months and represent a
portion of lifetime expected credit losses.At each balance sheet date the Company measures expected credit losses of financial instruments at
different stages separately. If the credit risk of a financial instrument has not increased significantly since
initial recognition it is classified in Stage 1 and the Company measures the loss provision based on
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12-month expected credit losses. If the credit risk of a financial instrument has increased significantly
since initial recognition but the financial instrument has not become credit-impaired it is classified in
Stage 2 and the Company measures the loss provision based on lifetime expected credit losses. If the
financial instrument has become credit-impaired since initial recognition it is classified in Stage 3 and
the Company measures the loss provision based on lifetime expected credit losses.For financial instruments with low credit risk at the balance sheet date the Company assumes that their
credit risk has not increased significantly since initial recognition and measures the loss provision based
on 12-month expected credit losses.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 deduction of impairment provisions and
the effective interest rate. For financial instruments in Stage 3 the Company calculates interest income
based on their amortized cost after deduction of impairment provisions and the effective interest rate.For notes receivable accounts receivable receivables financing and contract assets the Company
measures the loss provision based on lifetime expected credit losses regardless of whether a significant
financing component exists.A. Receivables / contract assets
For notes receivable accounts receivable other receivables receivables financing contract assets and
long-term receivables for which objective evidence of impairment exists as well as other items
applicable to individual assessment the Company performs individual impairment tests recognizes
expected credit losses and makes individual impairment provisions. For notes receivable accounts
receivable other receivables receivables financing contract assets and long-term receivables for which
no objective evidence of impairment exists or where information on expected credit losses of an
individual financial asset cannot be assessed at reasonable cost the Company classifies such items into
portfolios based on credit risk characteristics calculates expected credit losses on a portfolio basis and
determines the portfolios as follows:
The basis for determining portfolios of notes receivable is as follows:
Notes receivable portfolio 1: commercial acceptance bills
Notes receivable portfolio 2: bank acceptance bills
For notes receivable classified into portfolios the Company calculates expected credit losses by
reference to historical credit loss experience current conditions and forecasts of future economic
conditions through exposure at default and lifetime expected credit loss rates.The basis for determining portfolios of accounts receivable is as follows:
Accounts receivable portfolio 1: aging portfolio
Accounts receivable portfolio 2: receivables from related parties within the consolidation scope
For accounts receivable classified into portfolios the Company calculates expected credit losses by
reference to historical credit loss experience current conditions and forecasts of future economic
conditions and by preparing a comparison table of the aging of accounts receivable and lifetime
expected credit loss rates.
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The basis for determining portfolios of other receivables is as follows:
Other receivables portfolio 1: interest receivable
Other receivables portfolio 2: dividends receivable
Other receivables portfolio 3: other receivables
Other receivables portfolio 4: receivables from related parties within the consolidation scope
For other receivables classified into portfolios the Company calculates expected credit losses by
reference to historical credit loss experience current conditions and forecasts of future economic
conditions through exposure at default and 12-month or lifetime expected credit loss rates.The basis for determining portfolios of receivables financing is as follows:
Receivables financing portfolio 1: notes receivable
Receivables financing portfolio 2: accounts receivable
For receivables financing classified into portfolios the Company calculates expected credit losses by
reference to historical credit loss experience current conditions and forecasts of future economic
conditions through exposure at default and lifetime expected credit loss rates.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 investments and different types of counterparties and risk exposures through
exposure at default and 12-month or lifetime expected credit loss rates.* Low credit risk
If the default risk of a financial instrument is low the borrower has a strong ability to fulfill its
contractual cash flow obligations in the short term and adverse changes in economic conditions and the
operating environment over a longer period would not necessarily reduce the borrower’s ability to fulfill
its contractual cash flow obligations the financial instrument is considered to have low credit risk.* Significant increase in credit risk
The Company assesses whether the credit risk of a financial instrument has increased significantly since
initial recognition by comparing the probability of default over the expected life of the financial
instrument determined at the balance sheet date with the probability of default over the expected life
determined at initial recognition so as to determine the relative change in the probability of default over
the expected 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 available without undue cost or effort
including forward-looking information. The information considered by the Company includes:
A. Whether internal pricing indicators resulting from changes in credit risk have changed significantly;
B. Whether adverse changes in business financial or economic conditions that are expected to
significantly affect the debtor’s ability to meet its debt obligations have occurred;
C. Whether the actual or expected operating results of the debtor have changed significantly; and
whether the regulatory economic or technological environment in which the debtor operates has
undergone significant adverse changes;
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D. Whether there have been significant changes in the value of collateral for the debt or in the quality of
guarantees or credit enhancements provided by third parties. Such changes are expected to reduce the
debtor’s economic incentive to make repayments within the contractual period or affect the probability
of default;
E. Whether there has been a significant change in the economic incentive expected to reduce the debtor’s
willingness to make repayments within the contractual period;
F. Expected changes to the loan contract including whether expected breaches of contract may lead to
exemption from or modification of contractual obligations the granting of an interest-free period an
interest rate step-up requirements for additional collateral or guarantees or other changes to the
contractual framework of the financial instrument;
G. Whether the debtor’s expected performance and repayment behavior have changed significantly;
H. Whether contractual payments are 30 days or more past due.Based 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 the assessment is
performed on a portfolio basis the Company may classify financial instruments based on common credit
risk characteristics such as past-due information and credit risk ratings.Generally if contractual payments are 30 days or more past due the Company determines that the credit
risk of the financial instrument has increased significantly unless the Company can obtain reasonable
and supportable information without undue cost or effort demonstrating that although the contractual
payments are 30 days or more past due the credit risk has not increased significantly since initial
recognition.* Credit-impaired financial assets
At the balance sheet date the Company assesses whether financial assets measured at amortized cost and
debt investments measured at fair value through other comprehensive income are credit-impaired. When
one or more events that have an adverse effect on the estimated future cash flows of a financial asset
occur the financial asset becomes credit-impaired. Evidence that a financial asset is credit-impaired
includes the following observable information:
The issuer or debtor is experiencing significant financial difficulty; the debtor breaches the contract
such as default or delinquency in interest or principal payments; for economic or contractual reasons
relating to the debtor’s financial difficulty the creditor grants concessions to the debtor that would not
otherwise be considered; it is probable that the debtor will enter bankruptcy or undergo other financial
restructuring; the financial difficulty of the issuer or debtor results in the disappearance of an active
market for the financial asset; or a financial asset is purchased or originated at a deep discount that
reflects the fact that a credit loss has occurred.* Presentation of provisions 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. The resulting increase or reversal of loss
provisions shall be recognized as impairment losses or gains in profit or loss for the current period. For
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financial assets measured at amortized cost the loss provision reduces the book value of the financial
asset presented in the balance sheet. For debt investments measured at fair value through other
comprehensive income the Company recognizes the loss provision in other comprehensive income and
does not reduce the book value of the financial asset.* Write-off
If the Company no longer reasonably expects that the contractual cash flows of a financial asset can be
recovered in whole or in part it directly writes down the book balance of the financial asset. Such
write-down constitutes derecognition of the relevant financial asset. This usually occurs when the
Company determines that the debtor has no assets or sources of income that could generate sufficient
cash flows to repay the amount to be written off.If a financial asset previously written off is subsequently recovered the recovery is recognized as a
reversal of impairment loss in profit or loss for the current period in which it is recovered.
(6) Transfer of financial assets
Transfer of financial assets refers to either of the following circumstances:
A. The contractual right to receive the cash flows of a financial asset is transferred to another party;
B. A financial asset is transferred in whole or in part to another party while the contractual right to
receive the cash flows of the financial asset is retained and a contractual obligation is assumed to pay the
cash flows received to one or more recipients.* Derecognition of transferred financial assets
If the Company has transferred substantially all the risks and rewards of ownership of a financial asset to
the transferee or has neither transferred nor retained substantially all the risks and rewards of ownership
of the financial asset but has relinquished control of the financial asset the financial asset is
derecognized.In determining whether control over the transferred financial asset has been relinquished the Company
considers the transferee’s practical ability to sell the financial asset. If the transferee is able to sell the
transferred financial asset in its entirety unilaterally to an unrelated third party without additional
restrictions on such sale the Company has relinquished control over the financial asset.In determining whether the transfer of a financial asset meets the conditions for derecognition the
Company focuses on the substance of the transfer.If the transfer of a financial asset in its entirety meets the derecognition conditions 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 for the transfer and the amount of the accumulated fair value
changes previously recognized directly in other comprehensive income that corresponds to the
derecognized portion where the transferred financial asset is classified as a financial asset measured at
fair value through other comprehensive income in accordance with Article 18 of Accounting Standard
for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments.If the partial transfer of a financial asset meets the derecognition conditions the book value of the
119 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
financial asset transferred in its entirety is allocated between the derecognized portion and the portion
not derecognized in which case the retained servicing asset is treated as part of the financial asset that
continues to be recognized based on their respective relative fair values at the transfer date. The
difference between the following two amounts is 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 received for the derecognized portion and the amount of the
accumulated fair value changes previously recognized in other comprehensive income that corresponds
to the derecognized portion where the transferred financial asset is classified as a financial asset
measured at fair value through other comprehensive income in accordance with Article 18 of Accounting
Standard for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments.* Continuing involvement in transferred financial assets
If the Company has neither transferred nor retained substantially all the risks and rewards of ownership
of a financial asset and has not relinquished control of the financial asset it recognizes the relevant
financial asset to the extent of its continuing involvement in the transferred financial asset and
recognizes the related liability accordingly.The extent of continuing involvement in a transferred financial asset refers to the extent to which the
Company assumes risks or rewards from changes in the value of the transferred financial asset.* Continuing recognition of transferred financial assets
If the Company retains substantially all the risks and rewards of ownership of the transferred financial
asset it continues to recognize the transferred financial asset in its entirety and recognizes 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 Company continues to recognize income or gains arising from the
financial asset and expenses or losses arising from the financial liability.
(7) Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and shall not
be offset against each other. However when the following conditions are met simultaneously they shall
be presented in the balance sheet at the net amount after offsetting:
The Company has a currently enforceable legal right to offset the recognized amounts;
The Company intends either 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 derecognition conditions the transferor shall not
offset the transferred financial assets against the related liabilities.
(8) Determination of fair value of financial instruments
The methods for determining the fair value of financial assets and financial liabilities are set out in Note
V.42(2).
12. Notes receivable
Please refer to Note V.11 “Financial instruments”.
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13. Accounts receivable
Please refer to Note V.11 “Financial instruments”.
14. Receivables financing
Please refer to Note V.11 “Financial instruments”.
15. Other receivables
Please refer to Note V.11 “Financial instruments”.
16. Inventory
(1) Classification of inventories
Inventories refer to finished goods or merchandise held by the Company for sale in the ordinary course
of business work in progress in the process of production and materials and supplies consumed in the
production process or in the rendering of services including raw materials turnover materials including
packaging materials and low-value consumables work in progress goods in stock (finished goods)
goods dispatched consumable biological assets and costs of construction work. Consumable biological
assets include broilers piglets and finishing pigs.
(2) Costing method for inventories issued
The Company measures inventories issued using the weighted average method.
(3) Inventory system
The Company adopts a perpetual inventory system. Inventories are counted at least once a year and any
inventory gains or losses are recognized in profit or loss for the current year.
(4) Amortization method for turnover materials
* Amortization method for low-value consumables: the Company uses the 50-50 amortization method
for ring moulds and wooden pallets and the one-time write-off method for other low-value
consumables.* Amortization method for packaging materials: the one-time write-off method is adopted upon
issuance.Recognition criteria and provision method for inventory write-downs
At the balance sheet date inventories are measured at the lower of cost and net realizable value. If the
cost of inventories is higher than their net realizable value a provision for decline in value of inventories
is recognized in profit or loss for the current period.In determining the net realizable value of inventories the Company relies on reliable evidence obtained
and considers factors such as the purpose of holding the inventories and the impact of events after the
balance sheet date.* For inventories held for direct sale such as finished goods merchandise and materials for sale net
realizable value is determined in the ordinary course of business based on the estimated selling price less
estimated selling expenses and relevant taxes and charges. For inventories held for the performance of
sales contracts or service contracts the contract price is used as the basis for determining net realizable
value. If the quantity of inventories held exceeds the quantity ordered under sales contracts the net
121 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
realizable value of the excess portion is determined based on the general selling price. For materials held
for sale net realizable value is determined based on the market price.* For materials that need to be processed net realizable value is determined in the ordinary course of
business based on the estimated selling price of the finished goods produced less the estimated costs to
be incurred to completion estimated selling expenses and relevant taxes and charges. If the net
realizable value of the finished goods produced from such materials is higher than cost the materials are
measured at cost. If a decline in material prices indicates that the net realizable value of the finished
goods is lower than cost the materials are measured at net realizable value and a provision for decline
in value of inventories is recognized for the difference.* The Company generally makes provisions for decline in value of inventories on an individual
inventory item basis. For inventories with large quantities and low unit prices provisions are made by
inventory category.* At the balance sheet date if the factors causing a previous write-down of inventory value no longer
exist the write-down is reversed within the amount of the provision for decline in value of inventories
previously made and the amount reversed is recognized in profit or loss for the current period.
17. Contract assets
Recognition method and criteria for contract assets
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between the satisfaction of performance obligations and customer payments. The
Company’s right to consideration for goods transferred or services provided to customers where such
right depends on factors other than the passage of time is presented as a contract asset. The Company’s
obligation to transfer goods or provide services to customers for consideration received or receivable
from customers is presented as a contract liability.Contract assets and contract liabilities are presented separately in the balance sheet. Contract assets and
contract liabilities arising from 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 “other non-currentliabilities” depending on its liquidity. Contract assets and contract liabilities arising from different
contracts shall not be offset against each other.For the method for determining expected credit losses on contract assets and the related accounting
treatment please refer to Note V.11.
18. Non-current assets or disposal groups held for sale
Not applicable.
19. Long-term equity investment
The Company’s long-term equity investments include equity investments in investees over which the
Company has control or significant influence as well as equity investments in joint ventures. An
investee over which the Company is able to exercise significant influence is an associate of the
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Company.
(1) Basis for determining joint control and significant influence over an investee
Joint control refers to the contractually agreed sharing of control over an arrangement where decisions
about the relevant activities of the arrangement require the unanimous consent of the parties sharing
control. In determining whether joint control exists the Company first assesses whether all parties or a
group of parties collectively control the arrangement. If all parties or a group of parties must act
together to direct the relevant activities of an arrangement they are deemed to collectively control the
arrangement. The Company then assesses whether decisions about the relevant activities of the
arrangement require the unanimous consent of the parties that collectively control the arrangement. If
two or more groups of parties are able to collectively control an arrangement joint control does not exist.Protective rights are not considered in determining whether joint control exists.Significant influence refers to the investor’s power to participate in the decision-making on the financial
and operating policies of the investee but not to control or jointly control the formulation of those
policies. In determining whether the Company is able to exercise significant influence over an investee
the Company considers the effect of voting shares in the investee held directly or indirectly by the
investor as well as currently exercisable potential voting rights held by the investor and other parties
assuming conversion into equity interests in the investee including the effect of currently convertible
warrants share options and convertible corporate bonds issued by the investee.When the Company directly or indirectly through its subsidiaries holds 20% 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 the Company cannot participate in the investee’s production
and operating decisions under such circumstances and therefore does not have significant influence.
(2) Determination of initial investment cost
* For long-term equity investments formed through business combinations the investment cost is
determined as follows:
A. For a business combination under common control where the combining party pays cash transfers
non-cash assets or assumes liabilities as consideration for the combination the initial investment cost of
the long-term equity investment is the share of the book value of the owners’ equity of the acquiree in
the consolidated financial statements of the ultimate controlling party on the combination date. The
difference between the initial investment cost of the long-term equity investment and the book value of
the cash paid non-cash assets transferred and liabilities assumed shall be adjusted against capital
reserves. If capital reserves are insufficient for offsetting retained earnings shall be adjusted.B. For a business combination under common control where the combining party issues equity
securities as consideration for the combination the initial investment cost of the long-term equity
investment is the share of the book value of the owners’ equity of the acquiree in the consolidated
financial statements of the ultimate controlling party on the combination date. The aggregate nominal
value of the shares issued is recorded as share capital. The difference between the initial investment cost
of the long-term equity investment and the aggregate nominal value of the shares issued shall be
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adjusted against capital reserves. If capital reserves are insufficient for offsetting retained earnings shall
be adjusted.C. For a business combination not under common control the fair value on the acquisition date of the
assets transferred liabilities incurred or assumed and equity securities issued to obtain control over the
acquiree is determined as the cost of the business combination and recognized as the initial investment
cost of the long-term equity investment. Intermediary fees such as audit legal service valuation and
consulting fees as well as other related administrative expenses incurred by the acquirer for the business
combination are recognized in profit or loss for the current period when incurred.* For long-term equity investments acquired by means other than business combinations the
investment cost is determined as follows:
A. For long-term equity investments acquired by cash payment the actual purchase price paid is taken as
the investment cost. The initial investment cost includes expenses taxes and other necessary
expenditures directly attributable to the acquisition of the long-term equity investment.B. For long-term equity investments acquired by issuing equity securities the fair value of the equity
securities issued is taken as the initial investment cost.C. For long-term equity investments acquired through exchange of non-monetary assets if the exchange
has commercial substance and the fair value of the asset received or the asset surrendered can be
measured reliably the initial investment cost is determined based on the fair value of the asset
surrendered and relevant taxes and charges. The difference between the fair value and the book value of
the asset surrendered is recognized in profit or loss for the current period. If the exchange of
non-monetary assets does not meet both of the above conditions the initial investment cost is
determined based on the book value of the asset surrendered and relevant taxes and charges.D. For long-term equity investments acquired through debt restructuring the initial recognition amount
is determined based on the fair value of the debt claim surrendered and other costs such as taxes
directly attributable to the asset. The difference between the fair value and the book value of the debt
claim surrendered is recognized in profit or loss for the current period.
(3) Subsequent measurement and method for recognizing profit or loss
Long-term equity investments in investees over which the Company has control are accounted for 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 long-term equity
investment is adjusted when additional investment is made or investment is recovered. Cash dividends
or profits declared and distributed by the investee are recognized as investment income for the current
period.* Equity method
The general accounting treatment for long-term equity investments accounted for using the equity
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method is as follows:
If the investment cost of a long-term equity investment is greater than the Company’s share of the fair
value of the investee’s identifiable net assets at the time of investment the initial investment cost of the
long-term equity investment is not adjusted. If the initial investment cost of a 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 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 respectively based on its
share of the net profit or loss and other comprehensive income realized by the investee and adjusts the
book value of the long-term equity investment accordingly. The Company reduces the book value of the
long-term equity investment based on its share of profits or cash dividends declared and distributed by
the investee. For other changes in the investee’s owners’ equity other than net profit or loss other
comprehensive income and profit distributions the Company adjusts the book value of the long-term
equity investment and recognizes the corresponding amount in owners’ equity. In recognizing its share
of the investee’s net profit or loss the Company adjusts the investee’s net profit based on the fair value
of the investee’s identifiable net assets at the time the investment was acquired. If the accounting
policies or accounting periods adopted by the investee are inconsistent with those of the Company the
investee’s financial statements are adjusted in accordance with the Company’s accounting policies and
accounting periods and investment income other comprehensive income and other relevant amounts are
recognized accordingly. Unrealized gains or losses on internal transactions between the Company and its
associates or joint ventures are eliminated to the extent attributable to the Company based on its share
and investment gains or losses are recognized on that basis. If unrealized losses on internal transactions
between the Company and the investee are asset impairment losses they are recognized in full.Where the Company is able to exercise significant influence over or exercise joint control of an
investee due to additional investment or other reasons but does not control the investee the initial
investment cost under the equity method is the sum of the fair value of the original equity investment
and the cost of the additional investment. If the original equity investment is classified as an investment
in other equity instruments the difference between its fair value and book value together with the
accumulated gains or losses previously recognized in other comprehensive income shall be transferred
from other comprehensive income to retained earnings in the period in which the investment is changed
to equity method accounting.Where the Company loses joint control of or significant influence over an investee due to disposal of
part of its equity investment or other reasons the remaining equity interest after disposal is measured at
fair value. The difference between its fair value and book value on the date when joint control or
significant influence is lost is recognized in profit or loss for the current period. Other comprehensive
income previously recognized in respect of the original equity investment accounted for using the equity
method is accounted for on the same basis as would be required if the investee had directly disposed of
the related assets or liabilities when the equity method ceases to be applied.
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(4) Equity investments held for sale
For remaining equity investments that are not classified as assets held for sale the equity method is
applied.Where an equity investment in an associate or joint venture previously classified as held for sale no
longer meets the classification criteria for assets held for sale retrospective adjustment is made using the
equity method from the date on which it was classified as held for sale. The financial statements for the
period during which it was classified as held for sale are adjusted accordingly.
(5) Impairment testing method and method for making impairment provisions
For the method of making asset impairment provisions for investments in subsidiaries associates and
joint ventures please refer to Note V.27.
20. Investment properties
(1) Where the cost model is adopted:
Classification of investment properties
Investment properties refer to real estate held to earn rentals or for capital appreciation or both. They
mainly include:
* land use rights leased out;
* land use rights held and intended to be transferred after appreciation;
* buildings leased out.Measurement model for investment properties
The Company adopts the cost model for subsequent measurement of investment properties. For the
method of making asset impairment provisions please refer to Note V.27.The Company depreciates or amortizes investment properties using the straight-line method after
deducting accumulated impairment losses and net residual value from the cost of investment properties.The depreciation period and annual depreciation rate are determined based on the category estimated
useful life and estimated net residual value rate of the investment properties as follows:
Category Depreciation period (years) Residual value rate (%) Annual depreciation rate (%)
Buildings
structures and 10-40 3 2.43-9.70
others
Land use rights Based on the term stated in theland use right certificate 0 -
21. Fixed assets
Fixed assets refer to tangible assets with relatively high unit value that are held for the production of
goods rendering of services leasing or operation and management and have a useful life of more than
one year.
(1) Recognition conditions
Fixed assets are recognized at actual cost when acquired if both of the following conditions are met:
* The economic benefits related to the fixed assets are likely to flow into the Company;
* The cost of the fixed assets can be measured reliably.
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Subsequent expenditures incurred for fixed assets are included in the cost of fixed assets if they meet the
recognition criteria for fixed assets; otherwise they are recognized in profit or loss for the current period
when incurred.
(2) Depreciation method
Depreciation is provided for fixed assets using the straight-line method from the month after they are
ready for intended use. The depreciation period and annual depreciation rate are determined based on the
category estimated useful life and estimated net residual value rate of the fixed assets as follows:
Category Method of Depreciation period Residual value rate Annual depreciationdepreciation (years) (%) rate (%)
Buildings and Straight-line
structures depreciation 10-40 3 2.43-9.70
Machinery and Straight-line
equipment depreciation 10 3 9.70
Transportation Straight-line
equipment depreciation 4 3 24.25
Other equipment Straight-linedepreciation 5 3 19.40
For fixed assets for which impairment provisions have been made the impairment provisions already
made are deducted when depreciation is provided.At the end of each year the Company reviews useful lives estimated net residual values and
depreciation methods of fixed assets. If the estimated useful life differs from the original estimate the
useful life of the fixed asset is adjusted.
22. Construction in progress
(1) Construction in progress is classified and accounted for on a project-by-project basis.
(2) Criteria and timing for transferring construction in progress to fixed assets
For construction in progress all expenditures incurred before the constructed asset reaches its intended
usable condition are recognized as the recorded value of the fixed asset. Such expenditures include
construction costs the original cost of machinery and equipment other necessary expenditures incurred
to bring the construction in progress to its intended usable condition borrowing costs incurred on
specific borrowings for the project before the asset reaches its intended usable condition and borrowing
costs incurred on general borrowings used for the project. The Company transfers construction in
progress to fixed assets when the installation or construction is completed and the asset reaches its
intended usable condition. For constructed fixed assets that have reached their intended usable condition
but for which final accounts for completed construction have not yet been finalized the Company
transfers them to fixed assets at an estimated value based on the project budget project cost or actual
construction cost from the date on which they reach their intended usable condition and provides
depreciation in accordance with the Company’s fixed asset depreciation policy. After the final accounts
for completed construction are completed the original estimated value is adjusted based on the actual
cost but the depreciation already provided is not adjusted.
23. Borrowing costs
(1) Recognition principles and capitalization period of borrowing costs
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Borrowing costs directly attributable to the acquisition construction or production of qualifying assets
are capitalized as part of the cost of such assets when all of the following conditions are satisfied:
* Asset expenditures have been incurred;
* Borrowing costs have been incurred;
* Activities necessary to prepare the asset for its intended usable condition have commenced.All other borrowing costs including interest discounts premiums and exchange differences are
recognized in profit or loss for the current period in which they are incurred.Capitalization of borrowing costs is suspended if the acquisition construction or production of a
qualifying asset is abnormally interrupted for a continuous period of more than three months.Capitalization ceases when the qualifying asset is ready for its intended use or sale. Any subsequent
borrowing costs are expensed in the period in which they are incurred.
(2) Capitalization rate and calculation of capitalized amount
For specific borrowings obtained for the acquisition construction or production of qualifying assets the
amount of interest capitalized is the actual interest expense incurred during the period less any interest
income on unused borrowings deposited in banks or investment income from temporary investments.Where general borrowings are used for the acquisition construction or production of qualifying assets
the amount of interest to be capitalized is calculated by multiplying the weighted average of
accumulated asset expenditures exceeding the specific borrowings by the capitalization rate of the
general borrowings. The capitalization rate is determined based on the weighted average interest rate of
the general borrowings.
24. Biological assets
(1) Recognition criteria for biological assets
Biological assets are assets that consist of living animals and plants.A biological asset is recognized only when all of the following conditions are satisfied:
* The Company owns or controls the biological asset as a result of past transactions or events;
* It is probable that the economic benefits or service potential associated with the biological asset will
flow to the Company;
* The cost of the biological asset can be measured reliably.
(2) Classification of biological assets
The Company’s biological assets include consumable biological assets productive biological assets and
biological assets for public welfare.Biological assets are subsequently measured at cost.* Consumable biological assets
Consumable biological assets are those held for sale or for harvest as agricultural produce in the future
including growing field crops vegetables timber forests and livestock held for sale.They are initially measured at cost. The cost of self-cultivated self-established self-propagated or
128 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
self-bred consumable biological assets includes necessary expenditures directly attributable to the assets
up to the point of sale including borrowing costs eligible for capitalization.Subsequent costs such as management and feeding expenses incurred after harvest are recognized in
profit or loss for the current period.When consumable biological assets are harvested or sold their cost is carried forward at book value
using the weighted average method.* Productive biological assets
Productive biological assets are those held for the production of agricultural produce provision of
services or leasing including economic forests fuelwood forests breeding livestock and draught
animals.They are initially measured at cost. The cost of self-established or self-propagated productive biological
assets includes necessary expenditures directly attributable to the assets up to the point when they reach
their intended production and operating purpose including borrowing costs eligible for capitalization.Management maintenance and feeding expenses incurred after canopy closure or after the assets reach
their intended production and operating purpose are recognized in profit or loss for the current period.Gains or losses on the disposal of productive biological assets due to sale inventory loss death or
damage are recognized in profit or loss for the current period as the difference between disposal
proceeds and book value and relevant taxes and charges.* Biological assets for public welfare
Biological assets for public welfare are those held primarily for protection and environmental
conservation purposes including windbreak and sand-fixation forests soil and water conservation
forests and water conservation forests.They are initially measured at cost. The cost of self-established biological assets for public welfare
includes necessary expenditures directly attributable to the assets up to the point of canopy closure
including borrowing costs eligible for capitalization.Subsequent costs such as management and maintenance expenses incurred after canopy closure are
recognized in profit or loss for the current period.Biological assets for public welfare are subsequently measured at cost. No impairment provisions are
made for such assets.Gains or losses on the disposal of biological assets for public welfare due to sale inventory loss death or
damage are recognized in profit or loss for the current period as the difference between disposal
proceeds and book value and relevant taxes and charges.
(3) Useful lives and depreciation methods of productive biological assets
Depreciation of productive biological assets is calculated using the straight-line method. The
depreciation rate is determined based on the estimated useful life and estimated net residual value rate of
each type of biological asset as follows:
Type of productive Useful life Estimated residual Depreciation method
biological asset value
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Breeding pig 36 months 20.00% Straight-line method
Broiler breeder 30 weeks RMB 22.50 per bird Units-of-production
method
Laying duck 10 months RMB 30.00 per duck Straight-line method
Layer 14 months RMB 21.00 per layer Straight-line method
Breeding cattle 6 years 30% Straight-line method
The Company reviews the useful lives estimated net residual values and depreciation methods of
productive biological assets at least at the end of each year. Any changes are accounted for as changes in
accounting estimates.
25. Oil and gas assets
Not applicable
26. Intangible assets
(I) Useful lives determination basis estimates amortization methods and review procedures
(1) Valuation of intangible assets
Intangible assets are recorded at actual cost when acquired.
(2) Useful lives and amortization of intangible assets
* Estimates of useful lives of intangible assets with finite useful lives:
Item Estimated useful life Basis
Based on the term stated in
Land use rights Legal term of use
the land use right certificate
Computer software 5-10 years Determined by reference to the period over which they are
and others expected to bring economic benefits to the Company
At the end of each year the Company reviews the useful lives and amortization methods of intangible
assets with finite useful lives. Based on its review there are no changes from previous estimates.* Intangible assets for which the period over which economic benefits are expected to be generated for
the Company cannot be estimated reliably are regarded as intangible assets with indefinite useful lives.The Company reviews the useful lives of such intangible assets at the end of each year. If their useful
lives are still determined to be indefinite upon review the assets are tested for impairment at 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 estimated
useful lives. Amortization charges are recognized in profit or loss for the current period or included in
the cost of related assets based on the nature of the benefited items. The amortizable amount is the cost
less estimated residual value and any accumulated impairment provisions. The residual value of
intangible assets with finite useful lives is generally deemed to be zero unless a third party commits to
purchase the intangible asset at the end of its useful life or residual value information is available from
an active market and such market is likely to exist at the end of the useful life.Intangible assets with indefinite useful lives are not amortized. Their useful lives are reviewed at the end
130 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
of each year. If evidence indicates that the useful life of an intangible asset is finite the useful life is
estimated and amortization is provided systematically and reasonably over the estimated useful life.(II) Scope of accumulation of R&D expenditures and related accounting treatment
(1) Scope of R&D expenditures
The Company includes all expenses directly related to R&D activities in R&D expenditures including
employee compensation of R&D personnel direct input costs depreciation expenses and long-term
deferred expenses.
(2) Classification between the research phase and the development phase
* The research phase includes data collection and related preparatory activities for further development.Expenditures incurred during the research phase of intangible assets are recognized in profit or loss for
the current period when incurred.* Development activities carried out after the Company has completed the research phase are regarded
as the development phase.
(3) Conditions for capitalization of development expenditures
Development expenditures are recognized as intangible assets only when all of the following conditions
are met:
A. It is technically feasible to complete the intangible asset so that it will be available for use or sale;
B. The Company has the intention to complete and use or sell the intangible asset;
C. The manner in which the intangible asset will generate economic benefits can be demonstrated
including evidence that there is a market for the products produced using the intangible asset or for the
intangible asset itself; if the intangible asset is to be used internally its usefulness can be demonstrated;
D. The Company has sufficient technical financial and other resources to complete the development of
the intangible asset and has the ability to use or sell the intangible asset;
E. The expenditures attributable to the development phase of the intangible asset can be measured
reliably.
27. Impairment of long-term assets
The impairment of long-term equity investments in subsidiaries associates and joint ventures
investment properties subsequently measured using the cost model fixed assets construction in progress
productive biological assets measured using the cost model right-of-use assets intangible assets
goodwill interests in proved oil and natural gas properties and wells and related facilities excluding
inventories investment properties measured using the fair value model deferred tax assets and financial
assets is determined as follows:
At the balance sheet date the Company assesses whether there is any indication that an asset may be
impaired. If any indication of impairment exists the Company estimates the recoverable amount of the
asset 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 any indication of impairment exists.The recoverable amount is determined as the higher of the fair value of the asset less costs of disposal
131 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
and the present value of the estimated future cash flows of the asset. The Company estimates the
recoverable amount on an individual asset basis. If it is difficult to estimate the recoverable amount of an
individual asset the recoverable amount of the asset group to which the asset belongs is determined. An
asset group is identified based on whether the main 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 written down is recognized in profit
or loss for the current period and the corresponding provision for asset impairment is made.For the purpose of impairment testing of goodwill the book value of goodwill arising from a business
combination is allocated from the acquisition date to the relevant asset groups using a reasonable
method. If it is difficult to allocate the goodwill to the relevant asset groups it is allocated to the relevant
combinations of asset groups. The relevant asset groups or combinations of asset groups are those
expected to benefit from the synergies of the business combination and are not larger than the reporting
segment determined by the Company.When performing impairment testing if there is any indication of impairment in an asset group or
combination of asset groups related to goodwill the asset group or combination of asset groups
excluding goodwill is tested for impairment first and the recoverable amount is calculated to recognize
the corresponding impairment loss. The asset group or combination of asset groups including goodwill is
then tested for impairment by comparing its book value with its recoverable amount. If the recoverable
amount is lower than the book value an impairment loss on goodwill is recognized.Once an asset impairment loss is recognized it shall not be reversed in subsequent accounting periods.
28. Long-term deferred expenses
Long-term deferred expenses represent expenses already incurred by the Company that should be borne
by the current and subsequent periods and have an amortization period of more than one year.The Company amortizes long-term deferred expenses evenly over their benefit periods.
29. Contract liabilities
For the recognition method of contract liabilities please refer to Note V.17.
30. Employee benefits
Employee benefits refer to all forms of consideration or compensation provided by the Company in
exchange for services rendered by employees or for the termination of employment relationships.Employee benefits include short-term employee benefits post-employment benefits termination
benefits and other long-term employee benefits. Benefits provided by the Company to employees’
spouses children dependants family members of deceased employees and other beneficiaries also
constitute employee benefits.Based on liquidity employee benefits are presented in the balance sheet under “Employee benefitspayable” and “Long-term employee benefits payable” respectively.
(1) Accounting treatment of short-term employee benefits
* Basic employee compensation including wages bonuses allowances and subsidies
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During the accounting period in which employees render services to the Company the Company
recognizes the short-term employee compensation actually incurred as a liability and recognizes it in
profit or loss for the current period except where other accounting standards require or permit it to be
included in the cost of assets.* Employee welfare expenses
Employee welfare expenses incurred by the Company are recognized based on the actual amount
incurred in profit or loss for the current period or included in the cost of related assets when incurred.Non-monetary employee welfare benefits are measured at fair value.* Medical insurance premiums work-related injury insurance premiums maternity insurance
premiums and other social insurance contributions housing provident fund trade union funds and
employee education funds
During the accounting period in which employees render services to the Company medical insurance
premiums work-related injury insurance premiums maternity insurance premiums and other social
insurance contributions housing provident fund trade union funds and employee education funds paid
or provided by the Company for employees are calculated based on the prescribed bases and rates. The
corresponding amount of employee compensation is recognized as a liability and is recognized in profit
or loss for the current period or included in the cost of related assets.* Short-term paid absences
When employees render services that increase their entitlement to future paid absences the Company
recognizes employee compensation related to accumulating paid absences and measures it at the
expected additional payment arising from the accumulated unused entitlement. The Company recognizes
employee compensation related to non-accumulating paid absences during the accounting period in
which the absences actually occur.* Short-term profit-sharing plans
If a profit-sharing plan meets both of the following conditions the Company recognizes the related
employee compensation payable:
A. The Company has a present legal obligation or constructive obligation to pay employee compensation
as a result of past events;
B. The amount of the employee compensation obligation arising from the profit-sharing plan can be
estimated reliably.
(2) Accounting treatment of post-employment benefits
* Defined contribution plans
During the accounting period in which employees render services to the Company the Company
recognizes the contributions payable under defined contribution plans as a liability and recognizes them
in profit or loss for the current period or includes them in the cost of related assets.Under a defined contribution plan where all contributions payable are not expected to be paid within 12
months after the end of the annual reporting period in which employees render the related services the
133 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company measures employee compensation payable at the discounted amount of all contributions
payable by reference to the corresponding discount rate which is determined based on the market yields
of treasury bonds or high-quality corporate bonds in an active market at the balance sheet date that
match the term and currency of the defined contribution plan obligation.* Defined benefit plans
A. Determining the present value of defined benefit plan obligations and current service cost
Using the projected unit credit method the Company measures the obligations arising from defined
benefit plans and determines the period to which the related obligations are attributed based on unbiased
and mutually consistent actuarial assumptions for demographic and financial variables. The Company
discounts the obligations arising from defined benefit plans by reference to the corresponding discount
rate which is determined based on the market yields of treasury bonds or high-quality corporate bonds
in an active market at the balance sheet date that match the term and currency of the defined benefit plan
obligations to determine the present value of defined benefit plan obligations and current service cost.B. Recognizing the net liability or net asset of defined benefit plans
Where a defined benefit plan has assets the Company recognizes the deficit or surplus formed by
deducting the fair value of defined benefit plan assets from the present value of defined benefit plan
obligations as a net liability or net asset of the defined benefit plan.Where a defined benefit plan has a surplus the Company measures the net asset of the defined benefit
plan at the lower of the surplus of the defined benefit plan and the asset ceiling.C. Determining the amount to be included in the cost of assets or profit or loss for the current period
Service cost includes current service cost past service cost and settlement gains or losses. Except for
current service cost that other accounting standards require or permit to be included in the cost of assets
all other service costs are recognized in profit or loss for the current 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 on the effect of the asset ceiling
is recognized in profit or loss for the current period.D. Determining the amount to be included 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 being increases or decreases in the present value of previously measured
defined benefit plan obligations resulting from changes in actuarial assumptions and experience
adjustments;
(b) Return on plan assets excluding amounts included in net interest on the net liability or net asset of
the defined benefit plan;
(c) Changes in the effect of the asset ceiling excluding amounts included in net interest on the net
liability or net asset of the defined benefit plan.The above changes arising from the remeasurement of the net liability or net asset of a defined benefit
plan are recognized directly in other comprehensive income and are not reclassified to profit or loss in
134 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
subsequent accounting periods. Upon termination of the original defined benefit plan the Company
transfers all amounts previously recognized in other comprehensive income to undistributed profits
within equity.
(3) Accounting treatment of termination benefits
Where the Company provides termination benefits to employees it recognizes the employee
compensation liability arising from termination benefits and recognizes it in profit or loss for the current
period at the earlier of the following dates:
* When the Company can no longer unilaterally withdraw the termination benefits provided under a
plan to terminate employment relationships or a redundancy proposal;
* When the Company recognizes costs or expenses related to a restructuring involving the payment of
termination benefits.Where termination benefits are not expected to be fully paid within 12 months after the end of the annual
reporting period the Company discounts the amount of termination benefits by reference to the
corresponding discount rate which is determined based on the market yields of treasury bonds or
high-quality corporate bonds in an active market at the balance sheet date that match the term and
currency of the defined benefit plan obligations and measures employee compensation payable at the
discounted amount.
(4) Accounting treatment of other long-term employee benefits
* Where the conditions for defined contribution plans are met
For other long-term employee benefits provided by the Company that meet the conditions for defined
contribution plans the Company measures employee compensation payable at the discounted amount of
all contributions payable.* Where the conditions for defined benefit plans are met
At the end of the reporting period the Company recognizes employee benefit 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 of other long-term employee benefits;
C. Changes arising from the remeasurement of the net liability or net asset of other long-term employee
benefits.To simplify the related accounting treatment the total net amount of the above items is recognized in
profit or loss for the current period or included in the cost of related assets.
31. Provisions
(1) Recognition criteria for provisions
If an obligation related to a contingency meets all of the following conditions the Company recognizes
it as a provision:
* 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
135 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
the Company;
* The amount of the obligation can be measured reliably.
(2) Measurement of provisions
Provisions are initially measured at the best estimate of the expenditure required to settle the present
obligation taking into account the risks uncertainties and time value of money related to the
contingency.The book value of provisions is reviewed at each balance sheet date.If there is conclusive evidence 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
(1) Types of share-based payments
The Company’s share-based payments consist of cash-settled share-based payments and equity-settled
share-based payments.
(2) Fair value determination of equity instruments
* For shares granted to employees fair value is measured based on the market price of the Company’s
shares adjusted for the relevant grant terms and conditions excluding vesting conditions other than
market conditions.* Market prices are generally unavailable for share options granted to employees. In the absence of
traded options with similar terms and conditions the Company applies an appropriate option pricing
model to estimate the fair value of the options granted.
(3) Basis for the best estimate of equity instruments expected to vest
At each balance sheet date during the vesting period the Company updates its best estimate based on the
latest available information including changes in the number of employees expected to satisfy vesting
conditions and revises the estimated number of equity instruments expected to vest accordingly.
(4) Accounting treatment of share-based payment plans
Cash-settled share-based payments
* For cash-settled share-based payments that vest immediately upon grant the fair value of the liability
incurred by the Company is recognized in relevant costs or expenses on the grant date with a
corresponding increase in liabilities. The liability is remeasured at fair value at each balance sheet date
prior to settlement and at the settlement date with all changes recognized in profit or loss for the current
period.* For cash-settled share-based payments that vest only after the completion of services during the
vesting period or the satisfaction of specified performance conditions at each balance sheet date during
the vesting period the Company recognizes the services received in the current period in costs or
expenses and recognizes corresponding liabilities at the fair value of the liability based on the best
estimate of the satisfaction of vesting conditions.Equity-settled share-based payments
136 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
* For equity-settled share-based payments granted in exchange for employee services that vest
immediately upon grant the fair value of the equity instruments is recognized in relevant costs or
expenses on the grant date with a corresponding increase in capital reserves.* For equity-settled share-based payments granted in exchange for employee services that vest only
after the completion of services during the vesting period or the satisfaction of specified performance
conditions at each balance sheet date during the vesting period the Company recognizes the services
received in the current period in costs or expenses and capital reserves at the grant-date fair value of the
equity instruments based on the best estimate of the number of equity instruments expected to vest.
(5) Accounting treatment of modifications to share-based payment plans
Where a modification increases the fair value of the equity instruments granted the increase in fair value
is recognized as an increase in the services received. Where a modification increases the quantity of
equity instruments granted the fair value of the additional equity instruments is recognized as an
increase in the services received. The increase in fair value refers to the difference between the fair value
of the equity instruments immediately before and after the modification on the modification date.If a modification reduces the total fair value of the share-based payment or otherwise revises the terms
and conditions of the share-based payment plan in a manner unfavorable to employees the Company
continues to account for the services received as if the modification had not occurred unless part or all
of the equity instruments granted are cancelled.
(6) Accounting treatment of termination of share-based payment plans
If the equity instruments granted are cancelled or settled during the vesting period excluding
cancellations due to failure to satisfy vesting conditions the Company:
* Accounts for the cancellation or settlement as accelerated vesting and immediately recognizes the
amount that would otherwise have been recognized over the remaining vesting period;
* Treats all payments made to employees upon cancellation or settlement as repurchases of equity. The
excess of the repurchase payment over the fair value of the equity instruments on the repurchase date is
recognized as an expense for the current period.Where the Company repurchases vested equity instruments held by employees owners’ equity is
reduced. The excess of the repurchase consideration over the fair value of the equity instruments on the
repurchase date is recognized in profit or loss for the current period.
33. Other financial instruments such as preferred shares and perpetual bonds
Not applicable
34. Revenue
(I) Accounting policies for revenue recognition and measurement disclosed by business type
(1) General principles
Revenue is the total inflow of economic benefits arising from the Company’s ordinary activities which
increases shareholders’ equity and is not contributed by shareholders as capital.The Company recognizes revenue when it satisfies a performance obligation in a contract by transferring
137 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
control of the promised goods or services to a customer. Transfer of control means the customer has the
ability to direct the use of the goods and obtain substantially all of the economic benefits from them.For contracts containing multiple performance obligations the Company allocates the transaction price
to each distinct performance obligation at contract inception based on the relative stand-alone selling
prices of the promised goods or services and recognizes revenue for each performance obligation based
on the allocated amount.The transaction price is the amount of consideration to which the Company expects to be entitled in
exchange for transferring goods or services to customers excluding amounts collected on behalf of third
parties. In determining the transaction price variable consideration is estimated using either the expected
value method or the most likely amount method. Variable consideration is included in the transaction
price only to the extent that it is highly probable that a significant reversal in the cumulative amount of
revenue recognized will not occur when the uncertainty associated with the variable consideration is
subsequently resolved. For contracts containing a significant financing component the transaction price
is measured at the amount that the customer would have paid in cash at the date control of the goods is
transferred. The difference between this cash price and the contract consideration is amortized over the
contract term using the effective interest method. The Company does not account for a significant
financing component if the period between the transfer of control and customer payment is one year or
less.A performance obligation is satisfied over time if any one of the following criteria is met; otherwise it is
satisfied at a point in time:
* The customer simultaneously receives and consumes the economic benefits provided by the
Company’s performance;
* The customer controls the asset as it is created or enhanced by the Company;
* The Company’s performance creates an asset with no alternative use to the Company and the
Company has an enforceable right to payment for performance completed to date throughout the
contract term.For performance obligations satisfied over time revenue is recognized over time based on the measure
of progress towards complete satisfaction of the obligation unless progress cannot be reasonably
determined. The Company measures progress using either the input method or the output method. If
progress cannot be reasonably determined but the costs incurred to date are expected to be recoverable
revenue is recognized to the extent of costs incurred until progress can be reasonably determined.For performance obligations satisfied at a point in time revenue is recognized when the customer
obtains control of the goods or services.In assessing the transfer of control the Company considers the following indicators:
* The Company has a present right to payment for the goods or services;
* The Company has transferred legal title of the goods to the customer;
* The Company has transferred physical possession of the goods to the customer;
138 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
* The Company has transferred the significant risks and rewards of ownership of the goods to the
customer;
* The customer has accepted the goods.Sales with right of return
For sales transactions that include a right of return the Company recognizes revenue for the
consideration to which it is entitled upon the customer obtaining control of the goods and recognizes a
refund liability for the expected amount of refunds. Simultaneously the Company recognizes an asset
for the right to recover returned goods measured at the book value of the goods expected to be returned
less expected recovery costs including any potential impairment of returned goods. Cost of sales is
recognized as the book value of the transferred goods less the book value of the asset for the right to
recover returned goods. At each balance sheet date the Company re-estimates expected sales returns and
remeasures the refund liability and the asset for the right to recover returned goods accordingly.Warranty obligations
The Company provides warranties for sold goods and construction projects in accordance with
contractual terms and legal requirements. Assurance-type warranties that guarantee compliance with
agreed-upon specifications are accounted for in accordance with Accounting Standards for Business
Enterprises No. 13 – Contingencies. Service-type warranties that provide a distinct service in addition to
product assurance are treated as a separate performance obligation. A portion of the transaction price is
allocated to the service-type warranty based on relative stand-alone selling prices and revenue is
recognized when control of the warranty service is transferred to the customer. In evaluating whether a
warranty is a service-type warranty the Company considers whether the warranty is statutorily required
the length of the warranty period and the nature of the tasks the Company promises to perform.Principal versus agent considerations
The Company determines whether it is a principal or an agent based on whether it controls the promised
goods or services before transferring them to the customer. If the Company controls the goods or
services before transfer it acts as a principal and recognizes revenue at the gross amount of
consideration received or receivable. If not the Company acts as an agent and recognizes revenue at the
net amount of expected commission or fees calculated as the gross consideration less amounts payable
to other parties or at the fixed commission amount or rate.Consideration payable to customers
Consideration payable to a customer is recorded as a reduction of the transaction price unless the
payment is in exchange for a distinct good or service received from the customer. The reduction of
revenue is recognized at the later of when the related revenue is recognized and when the Company pays
or commits to pay the consideration.Customers’ unexercised contractual rights
Amounts received in advance from customers for goods or services are initially recognized as a liability
and recognized as revenue when the relevant performance obligations are satisfied. Where such advance
amounts are not refundable and customers may forfeit all or part of their contractual rights the Company
139 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
recognizes the relevant proportion of such amounts as revenue based on the pattern in which customers
exercise their contractual rights if it expects to be entitled to the amounts related to the forfeited
contractual rights. Otherwise the Company recognizes the relevant balance of the aforementioned
liability as revenue only when the likelihood that customers will require the remaining performance
obligations to be fulfilled becomes remote.Contract modifications
For modifications to construction contracts with customers:
* If the modification adds distinct construction services and additional consideration that reflects the
stand-alone selling price of the additional services the modification is accounted for as a separate
contract.* If the modification does not meet the criteria in * and the services already transferred are distinct
from those yet to be transferred at the modification date the modification is accounted for as a
termination of the original contract and the creation of a new contract covering the remaining
performance obligations and the modification.* If the modification does not meet the criteria in * and the services already transferred are not
distinct from those yet to be transferred at the modification date the modification is treated as part of the
original contract. The cumulative effect of the modification on revenue already recognized is adjusted
against revenue for the current period at the modification date.
(2) Specific methods
The Company’s specific revenue recognition policies are as follows:
The Company’s sales revenue primarily comprises sales of feed products feed raw materials broiler
products commercial hogs and other goods. Revenue is recognized when either cash payment or
advance payment has been received or collectibility is reasonably assured for credit sales and goods are
delivered to customers in accordance with the contract terms and customers obtain control of the related
goods.
35. Contract costs
Contract costs are classified into costs to fulfil a contract and costs to obtain a contract.Costs incurred by the Company to fulfil a contract are recognized as an asset if all of the following
conditions are met:
* The costs are directly related to a current contract or a contract expected to be obtained including
direct labor direct materials manufacturing overheads or similar costs costs explicitly borne by the
customer and other costs incurred solely as a result of the contract;
* The costs enhance the Company’s resources that will be used to satisfy performance obligations in
the future;
* The costs are expected to be recoverable.Incremental costs incurred by the Company to obtain a contract are recognized as an asset if they are
expected to be recoverable.
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Assets recognized in relation to contract costs are amortized on the same basis as revenue is recognized
for the related goods or services. However if the amortization period of costs to obtain a contract does
not exceed one year the Company recognizes such costs in profit or loss for the current period when
incurred.If the book value of an asset related to contract costs exceeds the difference between the following two
amounts the Company recognizes an impairment provision for the excess amount and recognizes it as
an asset impairment loss and further considers whether a provision related to an onerous contract shall
be recognized:
* 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 for transferring the related goods or services.If the above impairment provision is subsequently reversed the book value of the asset after reversal
shall not exceed the book value that would have been determined at the reversal date had no impairment
provision been made.Costs to fulfil a contract recognized as assets are presented under “inventories” if the amortizationperiod at initial recognition does not exceed one year or one normal operating cycle and under “othernon-current assets” if the amortization period at initial recognition exceeds one year or one normal
operating cycle.Costs to obtain a contract recognized as assets are presented 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 grant
(1) Recognition of government grants
Government grants are recognized only when both of the following conditions are met:
* The Company is able to comply with the conditions attached to the government grants;
* The Company is able to receive the government grants.
(2) Measurement of government grants
Government grants in the form of monetary assets are measured at the amount received or receivable.Government grants in the form of non-monetary assets are measured at fair value. If fair value cannot be
reliably measured such grants are measured at the nominal amount of RMB 1.
(3) Accounting treatment of government grants
* Government grants related to assets
Government grants received by the Company for the purpose of acquiring constructing or otherwise
forming long-term assets are classified as government grants related to assets. Such grants are
recognized as deferred income and are systematically recognized in profit or loss over the useful lives of
the related assets. Government grants measured at the nominal amount are recognized directly in profit
141 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
or loss for the current period. If the related asset is sold transferred scrapped or damaged before the end
of its useful life the remaining unamortized balance of deferred income is transferred to profit or loss for
the period in which the asset is disposed of.* Government grants related to income
Government grants other than those related to assets are classified as government grants related to
income and are accounted for as follows:
Grants intended to compensate the Company for related costs expenses or losses in future periods are
recognized as deferred income and recognized in profit or loss for the current period in which the related
costs expenses or losses are recognized;
Grants intended to compensate the Company for related costs expenses or losses already incurred are
recognized directly in profit or loss for the current period.For government grants containing both asset-related and income-related components the Company
accounts for the components separately. If differentiation is impracticable the entire grant is classified as
a government grant related to income.Government grants related to the Company’s ordinary activities are recognized in other income
according to the substance of the underlying economic transactions. Government grants not related to
the Company’s ordinary activities are recognized in non-operating income or expenses.* Interest subsidies for policy-based preferential loans
Where the fiscal authority allocates interest subsidy funds to lending banks which then provide loans to
the Company at policy-based preferential interest rates the borrowing is initially measured at the
amount actually received and the related borrowing costs are calculated based on the principal of the
borrowings and the policy-based preferential interest rate.Where the fiscal authority directly allocates interest subsidy funds to the Company the corresponding
interest subsidies are offset against the related borrowing costs.* Return of government grants
When a recognized government grant needs to be returned if the book value of the related asset was
reduced upon initial recognition the book value of the asset is adjusted accordingly; if there is a balance
of related deferred income the book balance of the related 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.
37. Deferred income tax assets or deferred tax liabilities
The Company recognizes and measures the income tax effects of taxable temporary differences and
deductible temporary differences as deferred tax liabilities or deferred tax assets using the balance sheet
liability method based on the temporary differences between the book value of assets and liabilities at
the balance sheet date and their respective tax bases. Deferred tax assets and deferred tax liabilities are
not discounted.
(1) Recognition of deferred tax assets
142 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
For deductible temporary differences unused tax losses available for carryforward to future years and
unused tax credits the related income tax effect is calculated using the tax rates that are expected to
apply in the periods when the differences reverse and is recognized as a deferred tax asset to the extent
that it is probable that sufficient taxable income will be available against which the deductible temporary
differences unused tax losses and unused tax credits can be utilized.The income tax effect of deductible temporary differences arising from the initial recognition of assets or
liabilities in a transaction or event is not recognized as a deferred tax asset if the transaction or event has
both of the following characteristics:
A. The transaction is not a business combination;
B. At the time of the transaction the transaction effects neither accounting profit nor taxable income or
unused tax losses.However this exemption does not apply to a single transaction that meets both conditions above and
results in equal taxable and deductible temporary differences on initial recognition of assets and
liabilities. For such transactions the Company recognizes the corresponding deferred tax liabilities and
deferred tax assets separately at the transaction date.For deductible temporary differences associated with investments in subsidiaries associates and joint
ventures the related income tax effect is recognized as a deferred tax asset only when both of the
following conditions are met:
A. It is probable that the temporary differences will reverse in the foreseeable future;
B. It is probable that future taxable income will be available against which the deductible temporary
differences can be utilized.At the balance sheet date deferred tax assets not recognized in prior periods are recognized if there is
conclusive evidence that sufficient taxable income will be available in future periods to utilize the
deductible temporary differences.At the balance sheet date the Company reviews the book value of deferred tax assets. If it is no longer
probable that sufficient taxable income will be available to utilize the related tax benefits the book value
of deferred tax assets is written down. If it subsequently becomes probable that sufficient taxable income
will be available the write-down is reversed.
(2) Recognition of deferred tax liabilities
The Company measures the income tax effect of all taxable temporary differences using the tax rates
expected to apply in the periods of reversal and recognizes the effect as deferred tax liabilities except in
the following circumstances:
* The income tax effect of taxable temporary differences arising from the following transactions or
events is not recognized as a deferred tax liability:
A. Initial recognition of goodwill;
B. Initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting profit nor taxable income or unused tax losses at the time of the transaction.* For taxable temporary differences associated with investments in subsidiaries joint ventures and
143 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
associates the related income tax effect is generally recognized as a deferred tax liability unless both of
the following conditions are met:
A. The Company is able to control the timing of the reversal of the temporary differences;
B. It is probable that the temporary differences will not reverse in the foreseeable future.
(3) Recognition of deferred tax assets or liabilities arising from specific transactions or events
* Deferred tax assets or liabilities related to business combinations
For taxable or deductible temporary differences arising from business combinations not under common
control when deferred tax liabilities or deferred tax assets are recognized the related deferred tax
expense or income generally adjusts the goodwill recognized in the business combination.* Items recognized directly in equity
Current tax and deferred tax related to transactions or events recognized directly in equity are recognized
in equity. Transactions or events where the income tax effect of temporary differences is recognized in
equity include: other comprehensive income from changes in fair value of other debt investments;
adjustments to opening retained earnings from retrospective application of changes in accounting
policies or retrospective restatement of prior-period material errors; and initial recognition in equity of
hybrid financial instruments containing both liability and equity components.* Unused tax losses and tax credits
A. Unused tax losses and tax credits from the Company’s own operations
Unused tax losses are losses calculated in accordance with tax laws that may be offset against future
taxable income. Unused tax losses and tax credits available for carryforward to future years are treated
as deductible temporary differences. When it is probable that sufficient taxable income will be available
in future periods to utilize such losses or credits the corresponding deferred tax asset is recognized to
the extent of the taxable income expected to be available with a corresponding reduction in income tax
expense in the income statement for the current period.B. Unused tax losses of the acquiree arising from a business combination
In a business combination deductible temporary differences of the acquiree that do not meet the
recognition criteria for deferred tax assets at the acquisition date are not recognized. If within 12 months
after the acquisition date new or further information indicates that the conditions existing at the
acquisition date justify recognition and that the related tax benefits are expected to be realized the
corresponding deferred tax assets are recognized with a corresponding reduction of goodwill. If goodwill
is insufficient to absorb the adjustment the excess is recognized in profit or loss for the current period.In all other cases deferred tax assets related to business combinations are recognized in profit or loss for
the current period.* Temporary differences arising from consolidation eliminations
In preparing consolidated financial statements the elimination of unrealized gains or losses on internal
sales may result in temporary differences between the book value of assets and liabilities in the
consolidated balance sheet and their tax bases in the respective taxable entities. The Company
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recognizes deferred tax assets or deferred tax liabilities in the consolidated balance sheet and adjusts
income tax expense in the consolidated income statement except for deferred tax relating to transactions
or events recognized directly in equity and those relating to business combinations.* Equity-settled share-based payments
If tax laws permit share-based payment expenses to be tax-deductible during the period in which costs
and expenses are recognized under accounting standards the Company estimates the tax-deductible
amount based on information available at the end of the accounting period determines the tax base and
resulting temporary differences and recognizes related deferred tax if the recognition criteria are met.Where the expected future tax-deductible amount exceeds the share-based payment costs recognized
under accounting standards the income tax effect of the excess is recognized directly in equity.* Dividends relating to financial instruments classified as equity instruments
For financial instruments issued by the Company and classified as equity instruments if related dividend
payments are tax-deductible under applicable tax regulations the Company recognizes the income tax
effect of dividends when dividends payable are recognized. If the distributed profits are derived from
prior transactions or events that affected profit or loss the income tax effect is recognized in profit or
loss for the current period. If the distributed profits are derived from prior transactions or events
recognized directly in equity the income tax effect is recognized in equity.
(4) Basis for offsetting deferred tax assets and deferred tax liabilities
The Company offsets deferred tax assets and deferred tax liabilities and presents them on a net basis
only when both of the following conditions are satisfied:
* The Company has a legally enforceable right to set off current tax assets against current tax liabilities
on a net basis;
* The deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities and the Company intends in each
future period in which significant deferred tax amounts are expected to reverse to settle current tax
assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.
38. Lease
(1) Identification of leases
At the contract inception date the Company assesses whether a contract is or contains a lease. A
contract is or contains a lease if one party conveys the right to control the use of one or more identified
assets for a period of time in exchange for consideration. To determine whether a contract conveys the
right to control the use of an identified asset for a period of time the Company assesses whether the
customer has the right to obtain substantially all of the economic benefits from the use of the identified
asset throughout the period of use and has the right to direct the use of the identified asset during that
period.
(2) Identification of separate leases
If a contract contains multiple separate leases the Company separates the contract and accounts for each
145 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
separate lease individually. A right to use an identified asset constitutes a separate lease in the contract if
both of the following conditions are met: * the lessee can benefit from the use of the asset either on its
own or together with other resources that are readily available; * the asset is neither highly dependent
on nor highly interrelated with other assets in the contract.
(3) Accounting treatment of lease modifications
* Lease modifications accounted for as a separate lease
The Company accounts for a lease modification as a separate lease if both of the following conditions
are met: A. the modification increases the scope of the lease by adding the right to use one or more
underlying assets; B. the consideration for the increased lease scope is commensurate with the
stand-alone price for the increase in scope adjusted for the circumstances of the contract.* Lease modifications not accounted for as a separate lease
A. The Company as lessee
At the effective date of the lease modification the Company re-determines the lease term and
remeasures the lease liability by discounting the modified lease payments using a revised discount rate.In calculating the present value of the modified lease payments the interest rate implicit in the lease for
the remaining lease term is used as the discount rate; if that rate cannot be determined the incremental
borrowing rate at the effective date of the lease modification is used.The effect of the above adjustment to the lease liability is accounted for as follows:
* If the lease modification reduces the lease scope or shortens the lease term the book value of the
right-of-use asset is reduced and the gain or loss related to the partial or full termination of the lease is
recognized in profit or loss for the current period;
* For other lease modifications the book value of the right-of-use asset is adjusted accordingly.B. The Company as lessor
For modifications to operating leases the Company accounts for the modified arrangement as a new
lease from the effective date of the modification and treats any lease receipts received in advance or
receivable relating to the lease before modification as lease payments for the new lease.For modifications to finance leases that are not accounted for as a separate lease the Company accounts
for the modified lease as follows: if the modification had been effective at the lease commencement date
and the lease would have been classified as an operating lease the Company accounts for it as a new
lease from the effective date of the lease modification with the net investment in the lease before the
effective date of the lease modification recognized as the book value of the leased asset; if the
modification had been effective at the lease commencement date and the lease would have been
classified as a finance lease the Company accounts for the modification in accordance with the
provisions on contract modifications or renegotiations.
(4) Sale and leaseback
The Company assesses whether the transfer of an asset in a sale and leaseback transaction constitutes a
sale in accordance with Note V.34.
146 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
* The Company as seller-lessee
If the transfer of an asset in a sale and leaseback transaction does not constitute a sale the Company
continues to recognize the transferred asset recognizes a financial liability equal to the transfer proceeds
and accounts for the financial liability in accordance with Note V.11. If the transfer of the asset
constitutes a sale the Company measures the right-of-use asset arising from the leaseback based on the
portion of the original asset’s book value that relates to the right of use retained and recognizes the
related gain or loss only to the extent of the rights transferred to the lessor.* The Company as buyer-lessor
If the transfer of an asset in a sale and leaseback transaction does not constitute a sale the Company
does not recognize the transferred asset but recognizes a financial asset equal to the transfer proceeds
and accounts for the financial asset in accordance with Note V.11. If the transfer of the asset constitutes a
sale the Company accounts for the purchase of the asset in accordance with other applicable Accounting
Standards for Business Enterprises and accounts for the lease of the asset as lessor.Basis for judgments and accounting treatment for simplified treatment of short-term leases and leases of
low-value assets as lessee
At lease commencement date the Company identifies a lease with a lease term of not more than 12
months and without a purchase option as a short-term lease. A lease for which the underlying leased
asset is of low value when new is identified as a lease of a low-value asset. If the Company subleases or
expects to sublease a leased asset the head lease is not identified as a lease of a low-value asset.For all short-term leases and leases of low-value assets the Company recognizes lease payments in the
cost of related assets or in profit or loss for the current period on a straight-line basis over each period of
the lease term.Except for the above short-term leases and leases of low-value assets accounted for using the simplified
treatment the Company recognizes right-of-use assets and lease liabilities for leases at the lease
commencement date.* Right-of-use assets
A right-of-use asset refers to the lessee’s right to use a leased asset during the lease term.At the lease commencement date a right-of-use asset is initially measured at cost. Such cost comprises:
* The initial measurement amount of the lease liability;
* Lease payments made on or before the lease commencement date less any lease incentives received;
* Initial direct costs incurred by the lessee;
* Estimated costs to be incurred by the lessee in dismantling and removing the leased asset restoring the
site on which the leased asset is located or restoring the leased asset to the condition required by the
lease terms. The Company recognizes and measures such costs in accordance with the recognition
criteria and measurement method for provisions as set out in Note V.31. If the above costs are incurred
for the production of inventories they are included in the cost of inventories.Depreciation of right-of-use assets is provided by category using the straight-line method. If it is
147 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
reasonably certain 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 net
residual value rate over the estimated remaining useful life of the leased asset. If it is not reasonably
certain 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 over the shorter of the lease term and
the remaining useful life of the leased asset.The depreciation methods depreciation periods residual value rates and annual depreciation rates for
each category of right-of-use assets are as follows:
Category Depreciation Depreciation Residual value rate Annual depreciation rates (%)
method period (years) (%)
Buildings and Straight-line 5-20 0 5.00-20.00
structures method
Straight-line
Equipment 2-20 0 5.00-50.00
method
Land Straight-line 5-40 0 2.50-20.00
method
* Lease liabilities
Lease liabilities are initially measured at the present value of unpaid lease payments at the lease
commencement date. Lease payments comprise the following five items:
* Fixed payments and in-substance fixed payments less any lease incentives receivable;
* Variable lease payments that depend on an index or a rate;
* The exercise price of a purchase option if the lessee is reasonably certain to exercise that option;
* Payments for exercising a termination option if the lease term reflects that the lessee will exercise the
termination option;
* Amounts expected to be payable under residual value guarantees provided by the lessee.When calculating the present value of lease payments the interest rate implicit in the lease is used as the
discount rate. If the interest rate implicit in the lease 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 treated as unrecognized finance charges and interest expense is recognized over each period of
the lease term using the discount rate applied in recognizing the present value of the lease payments and
is recognized in profit or loss for the current period. Variable lease payments not included in the
measurement of lease liabilities are recognized in profit or loss for the current period when incurred.After the lease commencement date if there is a change in in-substance fixed payments a change in the
amounts expected to be payable under residual value guarantees a change in the index or rate used to
determine lease payments or a change in the assessment or actual exercise of a purchase option
extension option or termination option the Company remeasures the lease liability at the present value
of the revised lease payments and adjusts the book value of the right-of-use asset accordingly.Classification criteria and accounting treatment for leases as lessor
At the lease commencement date the Company classifies a lease that transfers substantially all the risks
and rewards incidental to ownership of the leased asset as a finance lease and classifies all other leases
148 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
as operating leases.* Operating leases
The Company recognizes lease receipts as rental income on a straight-line basis over each period of the
lease term. Initial direct costs incurred are capitalized and allocated on the same basis as rental income
recognition and recognized in profit or loss for the current period by installments. Variable lease
payments obtained by the Company in connection with operating leases that are not included in lease
receipts are recognized in profit or loss for the current period when incurred.* Finance leases
At the lease commencement date the Company recognizes finance lease receivables based on the net
investment in the lease being the sum of the unguaranteed residual value and the present value of lease
receipts not yet received at the lease commencement date discounted at the interest rate implicit in the
lease and derecognizes the underlying asset. During each period of the lease term the Company
calculates and recognizes interest income using the interest rate implicit in the lease.Variable lease payments obtained by the Company that are not included in the measurement of the net
investment in the lease are recognized in profit or loss for the current period when incurred.
39. Other significant accounting policies and accounting estimates
(1) Hedge accounting
* Classification of hedges
The Company classifies hedges into fair value hedges cash flow hedges and hedges of net investments
in foreign operations.A. A fair value hedge is a hedge of the exposure to changes in the fair value of a recognized asset or
liability an unrecognized firm commitment or a component of any such item. Such fair value changes
are attributable to a particular risk and could affect profit or loss or other comprehensive income.B. A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a
particular risk associated with a recognized asset or liability a highly probable forecast transaction or a
component of any such item and could affect profit or loss.C. A hedge of a net investment in a foreign operation is a hedge of foreign exchange risk exposure
arising from a net investment in a foreign operation. The hedged risk is the translation difference
between the functional currency of the foreign operation and that of the parent company.* Hedging instruments and hedged items
A hedging instrument is a financial instrument designated by the Company whose changes in fair value
or cash flows are expected to offset changes in the fair value or cash flows of the hedged item. Hedging
instruments include:
A. Derivative instruments measured at fair value through profit or loss except written options. A written
option may be designated as a hedging instrument only when hedging a purchased option including a
purchased option embedded in a hybrid contract. An embedded derivative that is not separated from a
hybrid contract cannot be designated as a separate hedging instrument.
149 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
B. Non-derivative financial assets or non-derivative financial liabilities measured at fair value through
profit or loss excluding financial liabilities designated as measured at fair value through profit or loss
for which changes in fair value attributable to changes in the entity’s own credit risk are recognized in
other comprehensive income.The Company’s own equity instruments are neither financial assets nor financial liabilities and cannot be
designated as hedging instruments.A hedged item is a reliably measurable item that exposes the Company to fair value or cash flow
variability and is designated as being hedged. The Company may designate the following individual
items groups of items or components thereof as hedged items:
A. Recognized assets or liabilities;
B. Unrecognized firm commitments. A firm commitment is a legally binding agreement to exchange a
specified quantity of resources at an agreed price on a specified future date or during a specified future
period;
C. Highly probable forecast transactions. A forecast transaction is an uncommitted but anticipated future
transaction;
D. Net investments in foreign operations.A component of an item refers to a part that is smaller than the entire change in the fair value or cash
flows of the item. The Company may designate the following components of items or combinations
thereof as hedged items:
A. Changes in fair value or cash flows of an item that are attributable only to one or more specific risks
namely risk components. Based on an assessment under specific market conditions the risk component
must be separately identifiable and reliably measurable. Risk components also include portions of
changes in the fair value or cash flows of a hedged item that are only above or only below a specified
price or other variable;
B. One or more selected contractual cash flows;
C. Components of the nominal amount of an item namely specified portions of the total amount or
quantity of the item which may be a proportion of the entire item or a layer component of the entire
item. If a layer component includes a prepayment option and the fair value of that prepayment option is
affected by changes in the hedged risk that layer cannot be designated as a hedged item in a fair value
hedge unless the effect of the prepayment option is included in measuring the fair value of the hedged
item.* Assessment of hedging relationships
At the inception of a hedging relationship the Company formally designates the hedging relationship
and prepares formal written documentation of the hedging relationship risk management objective and
risk management strategy. The documentation identifies the hedging instrument the hedged item the
nature of the hedged risk and the method used by the Company to assess hedge effectiveness. Hedge
effectiveness refers to the extent to which changes in the fair value or cash flows of the hedging
instrument offset changes in the fair value or cash flows of the hedged item attributable to the hedged
150 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
risk. Such hedges are assessed on an ongoing basis at the date of initial designation and in subsequent
periods to ensure that they meet the hedge effectiveness requirements.The Company discontinues hedge accounting if the hedging instrument expires is sold terminated or
exercised except where an extension or replacement forms part of the hedging strategy and is therefore
not treated as an expiration or termination; if changes in the risk management objective result in the
hedging relationship no longer meeting the risk management objective; if the economic relationship
between the hedged item and the hedging instrument no longer exists; if the effect of credit risk begins
to dominate the value changes arising from the economic relationship between the hedged item and the
hedging instrument; or if the hedge no longer meets other qualifying criteria for hedge accounting.If a hedging relationship no longer meets the hedge effectiveness requirements due to the hedge ratio
but the risk management objective for the designated hedging relationship remains unchanged the
Company rebalances the hedging relationship.* Recognition and measurement
Where the qualifying criteria for hedge accounting are met the Company accounts for hedges as
follows:
A. Fair value hedges
Gains or losses arising from the hedging instrument are recognized in profit or loss for the current period.If the hedge is of a non-trading equity instrument investment or a component thereof designated as
measured at fair value through other comprehensive income gains or losses arising from the hedging
instrument are recognized in other comprehensive income. Gains or losses on the hedged item
attributable to the hedged risk are recognized in profit or loss for the current period and the book value
of the recognized hedged item not measured at fair value is adjusted accordingly. If the hedged item is a
non-trading equity instrument investment or a component thereof designated as measured at fair value
through other comprehensive income gains or losses attributable to the hedged risk are recognized in
other comprehensive income and no adjustment is made to its book value because it is already measured
at fair value.For a fair value hedge of a financial instrument or a component thereof measured at amortized cost the
adjustment to the book value of the hedged item is amortized to profit or loss for the current period using
the effective interest rate recalculated from the date on which amortization begins. Amortization may
begin from the adjustment date and shall begin no later than the date on which the hedged item ceases to
be adjusted for hedging gains or losses. If the hedged item is a financial asset or a component thereof
measured at fair value through other comprehensive income the accumulated hedging gains or losses
recognized are amortized in the same manner and recognized in profit or loss for the current period but
the book value of the financial asset or component thereof is not adjusted.If the hedged item is an unrecognized firm commitment or a component thereof the cumulative change
in fair value attributable to the hedged risk after designation of the hedging relationship is recognized as
an asset or liability and the related gains or losses are recognized in profit or loss for the current period.When the firm commitment is fulfilled and an asset is acquired or a liability is assumed the initial
151 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
recognition amount of the asset or liability is adjusted to include the cumulative change in fair value of
the hedged item that has been recognized.B. Cash flow hedges
The effective portion of gains or losses on the hedging instrument is recognized in other comprehensive
income as a cash flow hedge reserve while the ineffective portion namely the remaining gains or losses
after deducting the amount recognized in other comprehensive income is recognized in profit or loss for
the current period. The amount of the cash flow hedge reserve is determined as the lower of the
following two amounts in absolute terms: a. the cumulative gains or losses on the hedging instrument
from inception of the hedge; b. the cumulative change in the present value of the expected future cash
flows of the hedged item from inception of the hedge.If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or
non-financial liability or if a forecast transaction for a non-financial asset or non-financial liability
becomes a firm commitment to which fair value hedge accounting is applied the amount of the cash
flow hedge reserve previously recognized in other comprehensive income is reclassified and included in
the initial recognition amount of the asset or liability. For other cash flow hedges the cash flow hedge
reserve previously recognized in other comprehensive income is reclassified to profit or loss for the
current period in the same period or periods during which the hedged forecast cash flows affect profit or
loss such as when forecast sales occur.C. Hedges of net investments in foreign operations
For hedges of net investments in foreign operations the effective portion of gains or losses on the
hedging instrument is recognized directly in other comprehensive income while the ineffective portion
is recognized in profit or loss for the current period. On disposal of the foreign operation the above
gains or losses on the hedging instrument previously recognized in other comprehensive income are
reclassified to profit or loss for the current period.
(2) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.The Company measures the fair value of the relevant asset or liability based on the price in the principal
market. If there is no principal market the Company measures the fair value of the relevant asset or
liability based on the price in the most advantageous market. The Company uses assumptions that
market participants would use when pricing the asset or liability assuming that market participants act in
their economic best interest.The principal market is the market with the greatest volume and level of activity for the relevant asset or
liability. The most advantageous market is the market that maximizes the amount that would be received
to sell the relevant asset or minimizes the amount that would be paid to transfer the relevant liability
after taking into account transaction costs and transport costs.For financial assets or financial liabilities with an active market the Company determines their fair value
based on quoted prices in the active market. If a financial instrument does not have an active market the
152 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company determines its fair value using valuation techniques.For non-financial assets measured at fair value the Company considers the ability of market participants
to generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.* Valuation techniques
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient available data and other information exist. The valuation techniques used mainly include the
market approach income approach and cost approach. The Company measures fair value using methods
consistent with one or more of these valuation techniques. If multiple valuation techniques are used to
measure fair value the Company considers the reasonableness of the valuation results and selects the
amount that is most representative of fair value under the 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 impracticable to obtain.Observable inputs are inputs that can be obtained from market data and reflect the assumptions that
market participants would use when pricing the relevant asset or liability. Unobservable inputs are inputs
that cannot be obtained from market data and are developed using the best information available about
the assumptions that market participants would use when pricing the relevant asset or liability.* Fair value hierarchy
The Company categorizes inputs used in fair value measurement into three levels and gives first priority
to Level 1 inputs second priority to Level 2 inputs and last priority to Level 3 inputs. Level 1 inputs are
unadjusted quoted prices in active markets for identical assets or liabilities that are available at the
measurement date. Level 2 inputs are inputs other than Level 1 inputs that are directly or indirectly
observable for the relevant asset or liability. Level 3 inputs are unobservable inputs for the relevant asset
or liability.
(3) Repurchase of the Company’s shares
* Where the Company reduces capital by repurchasing its own shares upon approval in accordance
with statutory procedures share capital is reduced by the aggregate par value of the shares cancelled.The difference between the consideration paid to repurchase the shares including transaction costs and
the aggregate par value of the shares is adjusted against owners’ equity. If the consideration paid exceeds
the aggregate par value the excess is charged against capital reserves (share premium) surplus reserves
and undistributed profits in sequence. If the consideration paid is lower than the aggregate par value the
difference is credited to capital reserves (share premium).* Before the shares repurchased by the Company are cancelled or transferred they are managed as
treasury shares and the total expenditure on repurchasing the shares is transferred to the cost of treasury
shares.* When treasury shares are transferred the portion of the transfer proceeds that exceeds the cost of
treasury shares is credited to capital reserves (share premium). If the transfer proceeds are lower than the
153 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
cost of treasury shares the shortfall is charged against capital reserves (share premium) surplus reserves
and undistributed profits in sequence.
(4) Restricted shares
Under an equity incentive plan where the Company grants restricted shares to incentive recipients the
recipients first subscribe for the shares and if the unlocking conditions stipulated in the equity incentive
plan are not subsequently met the Company repurchases the shares at the pre-agreed price. For
restricted shares issued to employees for which capital increase procedures such as registration have
been completed in accordance with relevant regulations on the grant date the Company recognizes share
capital and capital reserves (share premium) based on the subscription payments received from
employees; at the same time the Company recognizes treasury shares and other payables in respect of
the repurchase obligation.
40. Changes in significant accounting policies and accounting estimatesPlease refer to “Analysis and explanation by the Company on the reasons for and effects of changes inaccounting policies and accounting estimates or correction of material accounting errors” under
“Important Disclosures”.
41. Adjustments to the opening financial statements of the year of initial application arising from
the first implementation of new accounting standards or interpretations from 2025
Not applicable
42. Others
Not applicable
VI. Tax
1. Categories of taxes and tax rate
Tax type Taxation basis Tax rate
Value-added tax Output VAT-deductibleinput VAT 3% 9% 13% (output VAT)
Urban maintenance and
construction tax Turnover taxes 1% 5% 7%
Enterprise income tax Taxable income 15% 17% 25%
Education surcharge Turnover taxes 3%
Local education surcharge Turnover taxes 2%
Taxable entities subject to different enterprise income tax rates and applicable tax rates
Taxpayer Income tax rate%
Wellhope Foods Company; Xi’an Wellhope Feed Technology Company; Gansu
Wellhope Animal Husbandry Company; Guangzhou Xiangshun Livestock
Equipment Company; Shenyang Fengmei Biotechnology Company; Yangling 15
Wellhope Agriculture and Animal Husbandry Company; Yunnan Wellhope
Feed Company; Dazhou Wellhope Biotechnology Company
Dalian Huakang Xinxin Food Company; Kaifeng Wellhope Meat Food Income from
Company; Puyang Wellhope Food Company; Dalian Heyuan Animal preliminary
Husbandry Company; Wafangdian Yifeng Animal Husbandry Company; processing of
Shandong Heyuan Food Company; Shandong Heyuan Animal Husbandry agricultural products
Company; Pingyuan Wellhope Food Processing Company; Fuyu Wellhope and livestock and
Taolaizhao Poultry Farming Company; Puyang Wellhope Animal Husbandry poultry farming
Company; Changchun Wellhope Food Company; Dehui Wellhope Animal businesses is exempt
154 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Husbandry Company; Tongliao Wellhope Tianyi Grass Industry Company; from enterprise
Kaifeng Wellhope Agriculture and Animal Husbandry Technology Company; income tax
Shenyang Huakang Poultry Company; Tangshan Hejia Agriculture and Animal
Husbandry Company; Fushun Wellhope Agriculture and Animal Husbandry
Company; Anhui Wellhope Haoxiang Agricultural Development Company;
Lixin Xiangfeng Agriculture and Animal Husbandry Company; Lixin
Hongfeng Agriculture and Animal Husbandry Company; Shulan Wellhope
Animal Husbandry Company; Daqing Bifeng Animal Husbandry Company;
Hebei Deheng Farming Company; Dalian Hongtu Animal Husbandry
Company; Liaoning Wellhope Agriculture and Animal Husbandry
Development Company; Luoyang Wellhope Agriculture and Animal
Husbandry Company; Gongzhuling Wellhope Swine Farming Company; Lishu
Wellhope Ecological Farming Company; Anyang Wellhope Agriculture and
Animal Husbandry Company; Hebei Taihang Wellhope Food Company;
Nanyang Jinwan Animal Husbandry Company; Daqing Wellhope Food
Company; Zhumadian Wellhope Agricultural Development Company; Datong
Hejia Agriculture and Animal Husbandry Company; Shijiazhuang Hejia
Agriculture and Animal Husbandry Company; Fuxin Wellhope Agriculture and
Animal Husbandry Company; Dalian Zhongjia Food Company; Wafangdian
Huinong Poultry Company; Shenyang Wellhope Extruded Feed Company; Jilin
Wellhope Breeding Pig Propagation Company; Dunhua Fengda Agriculture
and Animal Husbandry Development Company; Shenyang Xiaohe Agriculture
and Animal Husbandry Company; Shenyang Wellhope Swine Farming
Company; Fuyang Wellhope Agriculture and Animal Husbandry Technology
Company; Lanxi Fengyuan Agriculture and Animal Husbandry Company;
Henan Herun Jiufeng Agriculture and Animal Husbandry Company; Anhui
Wellhope Food Company; Lixin Rongfeng Agriculture and Animal Husbandry
Company; Fuxin Wellhope Agriculture and Animal Husbandry Technology
Company; Suihua Wellhope Animal Husbandry Company; Tailai Wellhope
Agriculture and Animal Husbandry Company; Inner Mongolia Xinhaoji
Agriculture and Animal Husbandry Development Company; Zhangjiakou
Wellhope Agriculture and Animal Husbandry Company; Tangshan Fengnan
Heyou Agriculture and Animal Husbandry Company; Hengshui Hechen
Agriculture and Animal Husbandry Company; Hengshui Heyou Agriculture
and Animal Husbandry Company; Shenze Hezhi Agriculture and Animal
Husbandry Company; Xinji Heyou Agriculture and Animal Husbandry
Company; Hebei Xintaihang Wellhope Animal Husbandry Company; Hunan
Wellhope Agriculture and Animal Husbandry Company; Shandong Fengkang
Food Company; Dalian Wellhope Swine Farming Company; Xingcheng
Wellhope Swine Farming Company; Shandong Jiayixiang Agriculture and
Animal Husbandry Technology Company; Pingyuan Wellhope Animal
Husbandry Company; Liaoning Qingyuan Wellhope Agriculture and Animal
Husbandry Company; Tieling Wellhope Animal Husbandry Company; Fushun
Hexin Animal Husbandry Company; Qingdao Haifeng Animal Husbandry
Company; Chifeng Wellhope Fuxinyuan Food Company; Heilongjiang
Wellhope Daisenlin Food Company; Tieling Wellhope Food Company;
Lingyuan Wellhope Animal Husbandry Company; Ying County Jingu
Agriculture and Animal Husbandry Company; Kaifeng Jingu Agriculture and
Animal Husbandry Company; Jingzhou Jingu Agriculture and Animal
Husbandry Company; Hengshui Jingu Agriculture and Animal Husbandry
Company; Siping Wellhope Food Company; Anshan Jiuguhe Food Company;
Anshan Fengsheng Food Company; Tai’an County Jiuguhe Agricultural
Development Company; Fushun Juxin Animal Husbandry Company; Shenyang
Fengjiu Animal Husbandry Company; Huludao Jiuguhe Animal Husbandry
Company; Fushun Fengjiu Animal Husbandry Company; Fushun Xinhe
Animal Husbandry Company; Linghai Jiuguhe Feed Company; Huludao
Jiuguhe Food Company; Jinzhou Xinfeng Food Company; Jinzhou Fengjiu
155 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Animal Husbandry Company; Tai’an Fengjiu Animal Husbandry Company;
Jinzhou Jiufeng Food Company; Siping Wellhope Farming Company;
Shandong Wellhope Agriculture and Animal Husbandry Company
Singapore Golden Harvesta Trade Company 17
Other companies 25
2. Tax preference
(1) Value-added tax ("VAT")
Pursuant to the Notice on Exemption of Value-added Tax on Feed Products ([2001] No. 121) and other
relevant regulations the Company and its relevant subsidiaries are exempt from VAT on sales of feed
products.In accordance with the Announcement on VAT Reduction and Exemption Policies for Small-scale VAT
Payers (Announcement [2023] No. 19 of the Ministry of Finance and the State Taxation Administration)
small-scale VAT payers with monthly sales of RMB 100000 or less inclusive are exempt from VAT.Taxable sales revenue of small-scale VAT payers subject to a 3% levy rate is subject to VAT at a
reduced levy rate of 1%; prepaid VAT items subject to a 3% prepayment rate are prepaid at a reduced
prepayment rate of 1%. This policy remains effective until December 31 2027.
(2) Enterprise income tax
Pursuant to the Notice of the Ministry of Finance and the State Taxation Administration on Issuing the
Scope of Preliminary Processing of Agricultural Products Eligible for Enterprise Income Tax Exemption
(for Trial Implementation) ([2008] No. 149) the Enterprise Income Tax Law of the People’s Republic of
China and the Regulations for the Implementation of the Enterprise Income Tax Law of the People’s
Republic of China income derived by the Company and its subsidiaries from preliminary processing of
agricultural products and from livestock and poultry farming businesses that is eligible for enterprise
income tax exemption is exempt from enterprise income tax. The entities eligible for enterprise incometax exemption are set out in Note VI.1 “Major taxes and tax rates: Taxable entities subject to differententerprise income tax rates and applicable tax rates”.Guangzhou Xiangshun Livestock Equipment Company a subsidiary of the Company was jointly
recognized as a high-tech enterprise by the Department of Science and Technology of Guangdong
Province the Department of Finance of Guangdong Province and the Guangdong Provincial Tax Service
of the State Taxation Administration (Certificate No. GR202344006108). It is subject to an enterprise
income tax rate of 15% valid from December 2023 to December 2026. During the reporting period
Guangzhou Xiangshun Livestock Equipment Company was subject to an enterprise income tax rate of
15%.
Pursuant to the Announcement of the Ministry of Finance the State Taxation Administration and the
National Development and Reform Commission on Extending the Enterprise Income Tax Policy for the
Western Development Strategy (Announcement [2020] No. 23 of the Ministry of Finance the State
Taxation Administration and the National Development and Reform Commission) Xi’an Wellhope Feed
Technology Company Gansu Wellhope Animal Husbandry Company Yangling Wellhope Agriculture
and Animal Husbandry Company Yunnan Wellhope Feed Company and Dazhou Wellhope
156 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Biotechnology Company are entitled to a preferential enterprise income tax rate of 15%.On December 8 2025 Shenyang Fengmei Biotechnology Company a subsidiary of the Company was
jointly recognized as a high-tech enterprise by the Department of Science and Technology of Liaoning
Province the Department of Finance of Liaoning Province and the Liaoning Provincial Tax Service of
the State Taxation Administration (Certificate No. GR202521000001). It is subject to an enterprise
income tax rate of 15% valid for three years.The Company was jointly recognized as a high-tech enterprise by the Department of Science and
Technology of Liaoning Province the Department of Finance of Liaoning Province and the Liaoning
Provincial Tax Service of the State Taxation Administration (Certificate No. GR202321001872). It is
subject to an enterprise income tax rate of 15% valid from 2023 to 2025.Pursuant to the Announcement on Further Implementing Preferential Enterprise Income Tax Policies for
Small and Micro Enterprises (Announcement [2022] No. 13 of the Ministry of Finance and the State
Taxation Administration) for small low-profit enterprises the portion of annual taxable income
exceeding RMB 1 million but not exceeding RMB 3 million is included in taxable income at 25% of the
amount and is subject to enterprise income tax at a rate of 20%. Pursuant to the Announcement on
Further Supporting the Development of Small and Micro Enterprises and Individual Industrial and
Commercial Households through Tax and Fee Policies (Announcement [2023] No. 12 of the Ministry of
Finance and the State Taxation Administration) for small low-profit enterprises annual taxable income
not exceeding RMB 3 million is included in taxable income at 25% of the amount and is subject to
enterprise income tax at a rate of 20%. This policy remains effective until December 31 2027.Pursuant to the Announcement on Further Improving the Policy for Additional Pre-tax Deduction of
Research and Development Expenses (Announcement [2023] No. 7 of the Ministry of Finance and the
State Taxation Administration) for R&D expenses actually incurred by enterprises in R&D activities if
such expenses do not form intangible assets and are recognized in profit or loss for the current period an
additional 100% of the actual amount incurred may be deducted before corporate income tax in addition
to the actual deduction allowed under relevant regulations effective from January 1 2023. If such
expenses form intangible assets they may be amortized before corporate income tax at 200% of the cost
of the intangible assets from January 1 2023.
157 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
VII. Notes to the Items of Consolidated Financial Statements
1. Cash and bank balances
RMB
Item Closing balance Opening balance
Cash on hand 34234.73 339635.02
Bank deposits 1692562723.09 1748152242.58
Other monetary funds 27562178.91 45743263.42
Total 1720159136.73 1794235141.02
Including: Total amount deposited overseas 3983694.07 2252445.03
Other explanation:
At the end of the period other monetary funds included RMB 7.18 of deposits for letters of credit RMB
27561467.35 of futures margin deposits and RMB 704.38 of funds in securities accounts. Bank
deposits included RMB 2976936.79 frozen by court order and RMB 437840.64 subject to restrictions
on receipts and payments due to the failure to update business registration information in a timely
manner. Apart from the above there were no amounts in cash and bank balances that were pledged
frozen or otherwise restricted in use or subject to potential recoverability risks.
2. Trading financial assets
RMB
Item Closing Openingbalance balance
Financial assets measured at fair value and the changes recorded in
current profit and loss 904884.08
Including
Others 904884.08
Total 904884.08
3. Derivative financial assets
RMB
Item Closing balance Opening balance
Futures 6473245.85 2441832.40
Total 6473245.85 2441832.40
4. Notes receivable
(1) Classification
RMB
Item Closing balance Opening balance
Bank acceptance bills 3301161.04 1369195.29
Commercial acceptance bills 26524182.60
Total 3301161.04 27893377.89
(2) Notes receivable endorsed or discounted but not yet due at the balance sheet date
Item Derecognized at period end Not derecognized at period end
Bank acceptance bills 1039236.95
Total 1039236.95
158 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(3) Categorized by method of bad debt provision
RMB
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book value Book value
Amount Percentage % Amount Provision rate % Amount Percentage % Amount Provision rate %
Provision for bad debts on an individual basis
Provision for bad debts on a collective basis 3368531.68 100.00 67370.64 2.00 3301161.04 28462630.50 100.00 569252.61 2.00 27893377.89
Including:
Commercial acceptance bills 27065492.45 95.09 541309.85 2.00 26524182.60
Bank acceptance bills 3368531.68 100.00 67370.64 2.00 3301161.04 1397138.05 4.91 27942.76 2.00 1369195.29
Total 3368531.68 / 67370.64 / 3301161.04 28462630.50 / 569252.61 / 27893377.89
159 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Provision for bad debts on a collective basis:
Portfolio item: Bank acceptance bills
RMB
Closing balance
Item
Book balance Bad debt provision Provision rate %
Bank acceptance bills 3368531.68 67370.64 2.00
Total 3368531.68 67370.64 2.00
(4) Bad debt provision
RMB
Changes in 2025
Opening Closing
Category
balance Written OtherProvision Reversal balance
off fluctuations
Commercial acceptance bills 541309.85 541309.85
Bank acceptance bills 27942.76 39427.88 67370.64
Total 569252.61 39427.88 541309.85 67370.64
5. Accounts receivable
(1) Classified by aging
RMB
Aging Closing book balance Opening book balance
Within 1 year 931879159.30 841743338.66
1-2 years 123600332.31 124582704.37
2-3 years 53395632.38 47670563.50
Over 3 years 116435528.33 118938308.96
Total 1225310652.32 1132934915.49
160 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(2) Classified by the method of bad debt provision
RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Provision Book value Provision Book value
Amount Percentage % Amount Amount Percentage % Amount
rate % rate %
Provision for bad debts on 111854672.02 9.13 85973502.99 76.86 25881169.03 92664981.83 8.18 92664981.83 100.00
an individual basis
Provision for bad debts on 1113455980.30 90.87 148557788.60 13.34 964898191.70 1040269933.66 91.82 147115047.90 14.14 893154885.76
a collective basis
Including:
Aging portfolio 1113455980.30 90.87 148557788.60 13.34 964898191.70 1040269933.66 91.82 147115047.90 14.14 893154885.76
Total 1225310652.32 / 234531291.59 / 990779360.73 1132934915.49 / 239780029.73 / 893154885.76
161 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Provision for bad debts on an individual basis:
RMB
Name Closing balanceBook balance Bad debt provision Provision rate % Reason
Customer 1 44841848.45 22420924.22 50.00 Uncollectible
Customer 2 14768684.40 14768684.40 100.00 Uncollectible
Customer 3 8461300.00 8461300.00 100.00 Uncollectible
Customer 4 4734285.00 4734285.00 100.00 Uncollectible
Other customers 39048554.17 35588309.37 91.14 Uncollectible
Total 111854672.02 85973502.99 76.86 /
Provision for bad debts on a collective basis: Aging portfolio
RMB
Closing balance
Aging
Book balance Bad debt provision Provision rate %
Within 1 year 931879159.30 36265971.04 3.89
1-2 years 60456821.21 9068523.18 15.00
2-3 years 35793410.82 17896705.41 50.00
Over 3 years 85326588.97 85326588.97 100.00
Total 1113455980.30 148557788.60 13.34
(3) Bad debt provision
RMB
Changes in 2025
Opening
Category Recovery Closing balancebalance Provision Write-off Other changes
or reversal
Provision for bad debts 92664981.83 31662969.39 15417.56 39799524.67 1460494.00 85973502.99
on an individual basis
Provision for bad debts 147115047.90 19809892.28 35254480.99 16887329.41 148557788.60
on a collective basis
Total 239780029.73 51472861.67 15417.56 75054005.66 18347823.41 234531291.59
(4) Accounts receivable written off in the current period
RMB
Item Amount written off
Accounts receivable actually written off during the year 75054005.66
Including significant write-offs of accounts receivable:
RMB
Name Nature Written off Whether generated by relatedamount Reason party transactions
Customer 5 Payment forproducts 25112815.51 Uncollectible No
Customer 6 Payment forproducts 19350023.78 Uncollectible No
Customer 7 Payment forproducts 7350077.71 Uncollectible No
Customer 8 Payment forproducts 3654879.73 Uncollectible No
Customer 9 Payment forproducts 3343700.00 Uncollectible No
Total / 58811496.73 / /
162 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(5) Top 5 accounts receivable and contract assets by closing balance grouped by debtor
RMB
As a percentage
of the total
Closing balance Closing balance Closing balance
Debtor of accounts of contract of accounts
closing balance Closing balance
receivable assets receivable and
of accounts of bad debt
contract assets receivable and provisioncontract assets
(%)
149147441.0649147441.064.01983244.82
244841848.4544841848.453.6622420924.23
339112030.5739112030.573.19782240.61
438312823.4438312823.443.13806378.03
528552891.9928552891.992.332855289.20
Total 199967035.51 199967035.51 16.32 27848076.89
6. Contract assets
(1) Information of contract assets
RMB
Closing balance Opening balance
Item Book Provision for Book Book Provision for
balance bad debt value balance bad debt Book value
Retention
money not yet 346000.00 6920.00 339080.00 641840.00 13126.80 628713.20
due
Total 346000.00 6920.00 339080.00 641840.00 13126.80 628713.20
163 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(2) Classified by bad debt provision method
RMB
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book value Book value
Amount Percentage % Amount Provision rate % Amount Percentage % Amount Provision rate %
Provision for bad debts on an individual basis
Provision for bad debts on a collective basis 346000.00 100.00 6920.00 2.00 339080.00 641840.00 100.00 13126.80 2.00 628713.20
Including:
Aging portfolio 346000.00 100.00 6920.00 2.00 339080.00 641840.00 100.00 13126.80 2.00 628713.20
Total 346000.00 / 6920.00 / 339080.00 641840.00 / 13126.80 / 628713.20
164 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Provision for bad debts on a collective basis: Aging portfolio
RMB
Closing balance
Item
Book balance Bad debt provision Provision rate %
Retention money not yet due 346000.00 6920.00 2.00
Total 346000.00 6920.00 2.00
(4) Provision for bad debts on contract assets during the period
RMB
Item Opening balance Amount of provisionmade during the period Closing balance Reason
Retention money not yet
due 13126.80 -6206.80 6920.00 /
Total 13126.80 -6206.80 6920.00 /
7. Receivables financing
(1) Classification
RMB
Item Closing balance Opening balance
Notes receivable 46869206.20 9139184.14
Accounts receivable 9957058.32
Total 56826264.52 9139184.14
(2) Receivables financing endorsed or discounted but not yet due at the balance sheet date
RMB
Item Derecognized at period end Not derecognized at periodend
Bank acceptance bills 7435224.37
Total 7435224.37
8. Prepayments
(1) Classified by aging
RMB
Closing balance Opening balance
Aging
Amount Percentage % Amount Percentage %
Within 1 year 370896783.21 98.39 259488864.09 98.89
Over 1 year 6085857.12 1.61 2906634.61 1.11
Total 376982640.33 100.00 262395498.70 100.00
There were no significant prepayments aged over one year in the closing balance.
(2) Top 5 prepayments by closing balance grouped by prepayment recipient
RMB
Company Closing balance As a percentage of the closing balanceof prepayments %
130237025.588.02
219073400.005.06
315345052.304.07
411680403.643.10
59823249.512.61
Total 86159131.03 22.86
165 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
9. Other receivables
RMB
Item Closing balance Opening balance
Other receivables 127508002.69 69263268.24
Total 127508002.69 69263268.24
(1) Classified by aging
RMB
Aging Closing book balance Opening book balance
Within 1 year 69529881.69 53446126.87
1-2 years 98996476.35 37383595.16
2-3 years 28767031.63 6235298.82
Over 3 years 60464307.68 17283478.23
Total 257757697.35 114348499.08
(2) Classified by nature
RMB
Nature Closing book balance Opening book balance
General operating receivables 126217354.80 53681551.93
Deposits and margins 23570996.55 18871947.15
Receivables from disposal of investments 11645000.00 37445000.00
Other current loans 96324346.00 4350000.00
Total 257757697.35 114348499.08
(3) Bad debt provision
RMB
Stage 1 Stage 2 Stage 3
Bad debt provision 12-month Lifetime expected Lifetime expected Total
expected credit credit losses (not credit losses
loss credit-impaired) (credit-impaired)
Balance on January 1
20259468579.7335616651.1145085230.84
-Transfer to stage 2
- Transfer to stage 3 -2966244.95 2966244.95
-Transfer back to stage 2
- Transfer back to stage 1
Provision made during the
reporting period -33650231.53 50096830.75 16446599.22
Reversal during the
reporting period 6383875.46 6383875.46
Charged off during the
reporting period
Amount written off during
the period 1792087.72 2271561.55 4063649.27
Other changes 49536500.75 29628888.58 79165389.33
Closing balance on
December 31 2025 20596516.28 109653178.38 130249694.66
166 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Basis for stage classification and bad debt provision rates
a. As of December 31 2025 the provision for bad debts was measured based on the three-stage model
as follows:
RMB
Stage Book balance Provision for bad debts Book value
Stage 1 103173598.87 20596516.28 82577082.59
Stage 2
Stage 3 154584098.48 109653178.38 44930920.10
Total 257757697.35 130249694.66 127508002.69
b. As of December 31 2024 the provision for bad debts was measured based on the three-stage model
as follows:
RMB
Stage Book balance Provision for bad debts Book value
Stage 1 77402593.47 9468579.73 67934013.74
Stage 2
Stage 3 36945905.61 35616651.11 1329254.50
Total 114348499.08 45085230.84 69263268.24
(4) Bad debt provision
RMB
Opening Changes in 2025 Closing
Category
balance Provision Reversal Write-off Other changes balance
Other 45085230.84 16446599.22 6383875.46 4063649.27 79165389.33 130249694.66
receivables
Total 45085230.84 16446599.22 6383875.46 4063649.27 79165389.33 130249694.66
(5) Write-off of other receivables during the period
RMB
Item Amount written off
Other receivables actually written off 4063649.27
Including significant write-offs of other receivables:
RMB
Name Nature Amount written Reason Whether generated by relatedoff party transactions
1 General operatingreceivables 1795426.11 Uncollectible No
2 General operatingreceivables 1000000.00 Uncollectible No
Total / 2795426.11 / /
(6) Top 5 other receivables by closing balance grouped by debtor
RMB
As a percentage
of closing Closing balance of
Company Closing balance Nature Aging
balance of other bad debt provision
receivables %
Tai’an Huijun
1-2 years
Biomass 82463346.00 31.99 Other loans within 2 years 40347846.00
Energy
over 3 years
Company
167 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Liaoning
Mubang
Livestock 13761000.00 5.34 Other loans 1-2 years 1714150.00
Equipment
Manufacturing
Company
Li Yu 12691209.91 4.92
General operating
Within 1 year 1269120.99
receivables
Liaoning
Hehe
General operating
Rongdou 10468000.00 4.06 Over 3 years 10468000.00
receivables
Technology
Company
9910154.65 3.84 General operatingZhang Dechao Within 1 year 991015.47
receivables
Total 129293710.56 50.15 / / 54790132.46
(7) Presented under other receivables due to centralized fund management
Other explanation:
During the current period the Company acquired part of the equity interests in several associated
companies including Anshan Jiuguhe Food Company. Before the acquisition of these equity interests
the target companies had provided financial assistance to Tai’an Huijun Biomass Energy Company and
Liaoning Mubang Livestock Equipment Manufacturing Company.
10. Inventories
(1) Category of inventories
RMB
Closing balance Opening balance
Provision for inventory Provision for inventory
Item write-down/impairment write-down/impairment
Book balance Book value Book balance Book value
of contract of contract
performance costs performance costs
Raw 1150881116.08 916965.67 1149964150.41 1030538644.88 2747387.50 1027791257.38
materials
Low-value 71899122.53 71899122.53 37970752.28 37970752.28
consumables
Packaging 48413789.96 22191.88 48391598.08 20146801.19 20146801.19
materials
Work in 49323402.99 2403966.00 46919436.99 64061979.28 4851516.02 59210463.26
progress
Consumable
biological 1381675233.82 28974457.78 1352700776.04 912612731.35 17300534.64 895312196.71
assets
Finished 997270708.68 50160024.31 947110684.37 794286722.53 25678770.76 768607951.77
goods
Total 3699463374.06 82477605.64 3616985768.42 2859617631.51 50578208.92 2809039422.59
(2) Provision for inventory write-down/impairment of contract performance costs
RMB
Decrease during
Increase during the period
the period
Item Opening balance Closing balance
Reversal or
Provision Other
write-off
168 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Raw materials 2747387.50 456844.17 479358.12 2766624.12 916965.67
Work in progress 4851516.02 2447550.02 2403966.00
Packaging materials 43901.04 21709.16 22191.88
Consumable biological 17300534.64 107165131.24 14349081.20 109840289.30 28974457.78
assets
Finished goods 25678770.76 81223976.60 38830730.96 95573454.01 50160024.31
Total 50578208.92 188845952.01 53703071.32 210649626.61 82477605.64
11. Assets held for sale
Not applicable
12. Non-current assets due within one year
Not applicable
13. Other current assets
RMB
Item Closing balance Opening balance
Reclassification of VAT debit balance 191512963.20 143400061.96
Other 2322166.73 1552097.09
Total 193835129.93 144952159.05
14. Debt investments
Not applicable
15. Other debt investments
Not applicable
16. Long-term receivables
Not applicable
169 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
17. Long-term equity investment
RMB
Changes in the current period
Adjustment of Impairment
Share of profit or Other
Investee Opening balance Additional Reduction of other Dividends or Closing balance provision at
loss under the equity Other
investments investment comprehensive profit declared period end
equity method changes
income
1.Joint Venture
Unphung Joint Venture Company 4167616.44 4167616.44
Nepal Wellhope Agri-tech Pvt. 7501575.10 7501575.10
Ltd.Nexus Well-Hope Agritech
0.0017900000.00
International Limited
Subtotal 11669191.54 11669191.54 17900000.00
2.Associated Company
Huludao Jiuguhe Animal
Husbandry Company -8100583.43 8100583.43 0.00
Huludao Jiuguhe Feed Company 2454549.28 -97979.47 -17906.14 -2338663.67 0.00
Shenyang Wellhope Huahu Food
Technology Company 112803.65 -17185.25 -95618.40 0.00
Anshan Antai Plastic Products
Company 4808070.62 -186094.41 -4621976.21 0.00
Anshan Jiuguhe Paper Packaging
Company 8311081.66 394748.78 -8705830.44 0.00
Liaoning Yufeng Biotechnology
Company 9544660.02 -27674590.83 18129930.81 0.00
Jinzhou Xinfeng Food Company 11880867.42 -14644774.91 2763907.49 0.00
Tai’an Jiuguhe Agriculture
Development Company 17041588.33 -29230797.66 12189209.33 0.00
Linghai Jiuguhe Feed Company 37633111.09 -4332710.26 -17906.14 -33282494.69 0.00
Anshan Fengsheng Food Company 49842935.09 -2795139.74 -47047795.35 0.00
Tai’an Fengjiu Animal Husbandry
Company 85128552.40 -6359009.93 2696448.20 -81465990.67 0.00
Jinzhou Jiufeng Food Company 108666473.24 3103119.53 -111769592.77 0.00
Huludao Jiuguhe Food Company 26802757.86 2739799.60 -29542557.46 0.00
Anshan Jiuguhe Food Company 246435815.15 -3023223.21 -3013664.21 -240398927.73 0.00
Tai’an Huijun Biomass Energy
Company 0.00
Shenyang Wellhope Jibachuan
Agricultural Trading Company 350000.00 -350000.00 0.00
Hebei Taihang Wellhope Feed
Company 724524.46 -193085.12 -531439.34 0.00
Daqing Supply and Marketing 3605088.10 -340390.31 -3264697.79 0.00
170 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Wellhope Animal Husbandry
Company
Wudalianchi Shengda Pasture
Specialized Cooperative 0.00
Liaoning Petmate Biotechnology
Company 5576610.97 -756549.71 4820061.26
Jilin Jinfeng Animal Husbandry
Company 17699749.61 9000000.00 1186089.32 5188500.00 4697338.93
Chongqing Dahong Agriculture
and Animal Husbandry Machinery 11007021.63 1147431.77 12154453.40
Company
Dalian Wellhope Fishmeal
Company 24006512.39 2103298.96 26109811.35
Shenyang Wanlitian Agriculture
and Animal Husbandry Company 8923155.58 1283544.88 10206700.46
Liaoning Xinjuntong Logistics
Technology Company 1359145.08 342310.80 1701455.88
Haicheng Fengjiu Weaving Bag
Company 2730853.83 128741.44 2859595.27
Shihaipu (Beijing) Science and
Trade Company 2401334.11 6452.84 2407786.95
Hebei Taihang Wellhope Animal
Husbandry Company 33423224.96 8100000.00 1272685.05 26595910.01
Dunhua Fengda Breeding Broiler
Company 7937157.40 -237593.51 7699563.89
Shulan Fengtai Organic Fertilizer
Company 1526679.56 -137109.43 1389570.13
Qingdao Shenfeng Animal
Husbandry Company 12357893.73 -20002.00 -12337891.73 0.00
Suizhong Renhe Fishery Company 4846964.80 600000.00 925982.33 5172947.13
Dalian Zhongyi Hefeng Trading
Company 2775075.06 686747.99 3461823.05
Jiyuan Sunshine Rabbit Industry
Technology Company 9956201.37 -1356397.04 8599804.33
Luoyang Fenglong Agriculture and
Animal Husbandry Technology 600000.00 -37216.66 562783.34
Company
Shandong Mingxiang
Biotechnology Company 3500000.00 -18141.81 3481858.19
Hainan State Farm Wenfeng
Wenchang Chicken Industry 917203.60 -34386.37 882817.23
(Group) Company
Fuyu Fengyuan Layer Company 1258259.96 -422433.12 835826.84
Dandong Wellhope Chengsan
Animal Husbandry Company 121244199.91 11274453.34 132518653.25
Shandong Herui Fengkang Food
Technology Company 4900000.00 4900000.00
Xinjiang Wellhope Food 4800000.00 -3338113.90 1461886.10
171 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Processing Company
Shandong Qunxiang Food
Company 17500000.00 -271554.39 17228445.61
Dalian Sida Food Company 46291290.32 1097026.26 47388316.58
Xinhe Jinfeng (Shenyang) Supply
Chain Management Company 800000.00 206037.31 1006037.31
Liaoning Mubang Livestock
Equipment Manufacturing 12791031.69 8045916.31 461259.53 21298207.53
Company
Weifang Wellhope Xinhesheng
Feed Company 6347698.48 -307317.82 6040380.66
PT Sekar Golden Harvesta
Indonesia 32396435.64 937006.05 -2026465.82 31306975.87
Wudalianchi Zhongwang Dairy
Cow Breeding Farmers 764945.13 -305956.35 458988.78
Specialized Cooperative
Shenyang Yihe Enterprise
Management Partnership (Limited 1854830.41 1854830.41
Partnership)
Liaoning Anjiu Animal Nutrition
Food Company 29995946.61 4601.60 30000548.21
Shenyang Zhongwenjie
Biotechnology Company 15210899.22 6920532.48 22131431.70
Beijing Dahong Hengfeng Animal
Husbandry Technology Company 24141705.81 531691.06 24673396.87
Gongzhuling Wellhope Corn
Procurement and Storage 53855712.82 2580140.86 56435853.68
Company
Dandong Wellhope Chengsan
Food Company 109839361.33 4429235.81 114268597.14
Hebei Guanghe Animal Health
Products Trading Company 1750000.00 681020.73 2431020.73
Indonesia Godaji International
Trading Company 2839134.35 451713.46 -226245.39 -44239.88 361418.00 2658944.54
Jilin Hengfeng Animal Health
Products Company 9447771.05 2709056.52 1785000.00 10371827.57
PT. Mulia Harvest Agritech in
Indonesia 64972169.87 -1686586.31 -4272602.09 2681110.00 56331871.47
Liaoning New Yufeng
Biotechnology Company 164075.10 164075.10
Harbin Weierhao Trading
Company 24229585.43 835466.47 5508000.00 19557051.90
Indonesia Max Animal Husbandry
Technology Company 1492373.76 -195062.83 -160350.59 1136960.34
Dalian Chengsan Food Group
Company 370337585.91 10164235.93 7000000.00 373501821.84
Lankao Skyland Duck Industry
Company 36356524.49 -199811.77 36156712.72
172 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Chongqing Kuizhou Rabbit
Industry Company 11595243.41 3500000.00 843951.89 15939195.30
Beipiao Hongfa Food Company 604371761.63 72244037.29 10780000.00 665835798.92
Hetian Wellhope Animal
Husbandry Company 14400000.00 1667749.73 16067749.73
Dalian Minglu Agriculture
Development Company 21755472.06 9300000.00 -2598546.22 28456925.84
Golden Harvesta Inc. Philippines 144328704.25 20297945.53 40435835.54 -14151322.90 393313.72 191304476.14
Subtotal 2472654430.09 125245737.34 17700000.00 64691736.48 -21190015.08 349073.84 33304028.00 -534219845.19 2056527089.48
Total 2484323621.63 125245737.34 17700000.00 64691736.48 -21190015.08 349073.84 33304028.00 -534219845.19 2068196281.02 17900000.00
Note 1: In view of the particular market and regulatory environments in the countries where Unphung Joint Venture Company Nepal Wellhope Agri-tech Pvt. Ltd. and Nexus Well-Hope
Agritech International Limited operate as well as the limited extent of influence that the Company is able to exercise over them the Company’s investments in the above three entities are
accounted for using the cost method.Note 2: Tai’an Huijun Biomass Energy Company had closing net assets of RMB -25962352.38. The book value of the long-term equity investment was reduced to zero and the unrecognized
investment loss at the end of the period was RMB -6041439.40.Note 3: Shenyang Wellhope Jibaichuan Agricultural Trading Company had closing net assets of RMB -85225.52. The book value of the long-term equity investment was reduced to zero and
the unrecognized investment loss at the end of the period was RMB -19661.92.Note 4: Wudalianchi Shengda Pasture Specialized Cooperative had closing net assets of RMB -15536129.83. The book value of the long-term equity investment was reduced to zero and the
unrecognized investment loss at the end of the period was RMB -6737941.83.
173 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
18. Other equity instruments investment
RMB
Changes in the current period
Loss Cumulative
Item Opening Additional Reduction
recognized in
other Closing
loss recognized
balance in otherinvestments of balanceinvestment comprehensive comprehensiveincome during income
the period
Xi'an Micro Monkey
E-commerce Company -340000.00
Dalian Chengsan
Xuelong Wagyu Food -15000000.00
Processing Company
Henan Shanghui Feed
Development Company 163722.78 163722.78 -336277.22
Mudanjiang Wanding
Dairy Company -9022830.49
Xinhe Jinfeng
Biotechnology 313600.00 -522.79 313077.21 -522.79
(Shenyang) Company
Total 163722.78 313600.00 163722.78 -522.79 313077.21 -24699630.50
19. Other non-current financial assets
Not applicable
20. Investment properties
Investment properties accounted for using cost model
RMB
Item Buildings and Land usestructures rights Total
A. Original value
1. Opening balance 26701973.69 12899279.82 39601253.51
2. Increased amount during the reporting period 215245495.83 35670737.69 250916233.52
(1) Purchased
(2) Transfer from fixed assets/intangible assets 209664973.19 35670737.69 245335710.88
(3) Other 5580522.64 5580522.64
3. Decreased amount during the reporting
period
4. Closing balance 241947469.52 48570017.51 290517487.03
B. Accumulated depreciation/amortization
1. Opening balance 12305995.33 3314338.50 15620333.83
2. Increased amount during the reporting period 47481611.35 5015126.90 52496738.25
(1) Transfer from fixed assets/intangible assets 45778329.94 4749940.68 50528270.62
(2) Provision or amortization 1703281.41 265186.22 1968467.63
3. Decreased amount during the reporting
period
4. Closing balance 59787606.68 8329465.40 68117072.08
C. Impairment provision
1. Opening balance
2. Increased amount during the reporting period
(1) Provision
3. Decreased amount during the reporting
period
(1) Disposed or retired
174 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
4. Closing balance
D. Book value
1. Closing book value 182159862.84 40240552.11 222400414.95
2. Opening book value 14395978.36 9584941.32 23980919.68
21. Fixed assets
RMB
Item Closing balance Opening balance
Fixed assets 5680197948.63 4307643182.96
Disposal of fixed assets 22510.64
Total 5680220459.27 4307643182.96
(1) Condition of fixed assets
RMB
Buildings and Machinery and Transportation Other
Item Total
structures equipment vehicle equipment
A. Original value
1. Opening balance 3918853484.82 2705033118.60 130937056.11 154610038.90 6909433698.43
2. Increased amount 1415452646.22 1189076446.17 23980542.81 16643055.38 2645152690.58
(1) Purchased 129975950.06 108702753.86 10797803.60 4288744.72 253765252.24
(2) Transferred from 316138441.80 197014926.96 1066300.00 4890368.76 519110037.52
construction in progress
(3) Increased by business 969338254.36 883358765.35 12116439.21 7463941.90 1872277400.82
combination
3. Decreased amount 220470151.80 42933871.01 11133633.98 12638689.64 287176346.43
(1) Disposal or retirement 10805178.61 42933871.01 11133633.98 12638689.64 77511373.24
(2) Disposal of subsidiaries
(3) Converted to investment 209664973.19 209664973.19
property
4. Closing balance 5113835979.24 3851175693.76 143783964.94 158614404.64 9267410042.58
B. Accumulated depreciation
1.Opening balance 1019748010.70 1304314607.60 107260662.88 100315603.05 2531638884.23
2.Increased amount 438217853.64 552867719.87 45461478.75 20999296.24 1057546348.50
(1) Provision 221035672.22 269750776.08 36127817.26 15817338.15 542731603.71
(2) Increased by business 217182181.42 283116943.79 9333661.49 5181958.09 514814744.79
combination
3. Decreased amount 49288112.62 28539932.48 9990593.51 9481112.08 97299750.69
(1) Disposal or retirement 3509782.68 28539932.48 9990593.51 9481112.08 51521420.75
(2) Disposal of subsidiaries
(3) Converted to investment 45778329.94 45778329.94
property
4. Closing balance 1408677751.72 1828642394.99 142731548.12 111833787.21 3491885482.04
C. Impairment provision
1. Opening balance 40138647.92 29310503.15 106559.44 595920.73 70151631.24
2. Increased amount 27076644.30 27076644.30
(1) Provision 126467.38 126467.38
(2) Increased by business 26950176.92 26950176.92
combination
3. Decreased amount 351976.17 1477331.84 19710.28 52645.34 1901663.63
(1) Disposal or retirement 351976.17 1477331.84 19710.28 52645.34 1901663.63
4. Closing balance 39786671.75 54909815.61 86849.16 543275.39 95326611.91
175 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
D. Book value
1. Closing book value 3665371555.77 1967623483.16 965567.66 46237342.04 5680197948.63
2. Opening book value 2858966826.20 1371408007.85 23569833.79 53698515.12 4307643182.96
(2) Status of fixed assets pending ownership certification
RMB
Item Book value Reason for not obtainingownership certificate
Operation center and raw material warehouse 14912670.10 Obtained in January 2026
Jiuguhe Food — ancillary building for the
cooked products area 4654257.14 In process
Fengsheng — ancillary building for the cooked
products area 43900677.09 In process
Fengsheng — feather meal workshop 2057196.33 In process
Agriculture Development — production and
ancillary buildings 27618936.26 In process
Antai Plastics — production and ancillary
buildings 4912889.82 In process
Xinfeng — dormitory office building and
slaughtering workshop 128590071.78 In process
Jiuguhe Paper —plant building 2192269.27 In process
Total 228838967.79 /
22. Construction in progress
RMB
Item Closing balance Opening balance
Construction in progress 284606615.03 189068183.70
Total 284606615.03 189068183.70
(1) Details of construction in progress
RMB
Closing balance Opening balance
Item Book balance Impairmentprovision Book value Book balance Book value
Dalian Zhongjia — broiler
processing and slaughtering 8527389.25 8527389.25 8489311.95 8489311.95
project phase II
Hainan Wellhope —
200000-ton feed production 1331909.70 1331909.70
line project
Heilongjiang Wellhope —
creep feed and nursery feed 4557981.00 4557981.00
workshop
Shandong Heyuan —
reservoir renovation 9798025.36 2023625.36 7774400.00 9798025.36 9798025.36
Pingyuan Wellhope — cold
storage project 1526890.49 1526890.49
Tieling Wellhope Food —
renovation project for annual
slaughtering capacity of 50 67681005.94 4039800.00 63641205.94 65808853.00 65808853.00
million broilers
Siping Wellhope Food —
integration project of 80 14319093.77 14319093.77
million broilers phase I
176 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Liaoning Qingyuan — fifth
pelleting line and bulk grain 6387071.04 6387071.04
storage system project
Dasenlin Food — workshop
expansion 3259580.08 3259580.08 4427782.48 4427782.48
Shenyang Wellhope
Agriculture and Animal
Husbandry Technology —
beef cattle breeding 21166842.80 21166842.80
innovation capacity
enhancement project
Dazhou Wellhope —
bio-food processing project 17063531.33 17063531.33
phase II
Anshan Jiuguhe — cooked
food project with annual
processing capacity of 40000 171039750.50 171039750.50
tons
Anshan Fengsheng — raw
meat project phase II 1516356.40 1516356.40
Zhangjiakou Wellhope —
project renovation 10724159.96 10724159.96
Dalian Heyuan — bulk feed
project 3269000.00 3269000.00
Other miscellaneous
construction projects 18123772.90 18123772.90 30921890.78 30921890.78
Total 290670040.39 6063425.36 284606615.03 189068183.70 189068183.70
177 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(2) Changes of important constructions in progress
RMB
Including:
Cumulative Cumulative Interest
interest
Increased Amount transferred investment as Construction amount of capitalization
Project Budget Opening balance Closing balance capitalized Source of funds
amount to fixed assets a percentage progress % capitalized rate during
during the
of budget % interest the period %
period
Dalian Zhongjia — broiler
processing and
slaughtering project phase 250000000.00 8489311.95 58077.30 20000.00 8527389.25 20.00 14.00 Self-funded
II
Hainan Wellhope —
200000-ton production
line project for pet food 72000000.00 1331909.70 1331909.70 98.00 100.00 Self-funded
and other specialty feeds
Shandong Heyuan —
reservoir renovation 15000000.00 9798025.36 9798025.36 65.32 66.00 Self-funded
Pingyuan Wellhope —
cold storage project 100000000.00 1526890.49 1526890.49 100.00 100.00 Self-funded
Tieling Wellhope Food —
renovation project for
annual slaughtering 139825800.00 65808853.00 1872152.94 67681005.94 48.39 44.19 Self-funded
capacity of 50 million
broilers
Siping Wellhope Food — Self-funded
integration project of 80 198800000.00 14319093.77 163476597.97 177795691.74 89.43 100.00 public
million broilers phase I financing
Liaoning Qingyuan —
fifth pelleting line and
bulk grain storage system 13000000.00 6387071.04 2980233.15 9367304.19 72.06 100.00 Self-funded
project
Dasenlin Food —
workshop expansion 10500000.00 4427782.48 1168202.40 3259580.08 42.17 42.17 Self-funded
Shenyang Wellhope
Agriculture and Animal
Husbandry Technology —
beef cattle breeding 34050769.88 21166842.80 12883927.08 34050769.88 100.00 100.00 Self-funded
innovation capacity
enhancement project
Dazhou Wellhope —
bio-food processing 61214100.00 17063531.33 33358696.78 50422228.11 82.37 100.00 Self-funded
project phase II
Anshan Jiuguhe — cooked
food project with annual
processing capacity of 200000000.00 171039750.50 171039750.50 85.52 95.00 17994405.96 3682351.03 3.67 Self-funded
40000 tons
178 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Anshan Fengsheng — raw
meat project phase II 150000000.00 1516356.40 1516356.40 1.01 Self-funded
Zhangjiakou Wellhope —
project renovation 15954400.00 61730.00 10662429.96 10724159.96 67.22 65.00 Self-funded
Hebei Taihang Wellhope
Feed — broiler feed
project with annual 120000000.00 95314539.32 95314539.32 97.00 100.00 Self-funded
capacity of 500000 tons
Dalian Heyuan — bulk
feed project 11000000.00 3269000.00 5980000.00 9249000.00 84.08 100.00 Self-funded
Siping Wellhope Farming Self-funded
- broiler farming project
with annual production of 56800000.00 50778071.74 50778071.74 89.40 100.00 public
14.40 million financing
Shenyang Huakang
Broiler —cold storage 22000000.00 13360349.13 13360349.13 60.73 100.00 Self-funded
project
Total 1470145069.88 153650041.92 563281182.27 444384956.70 272546267.49 / / 17994405.96 3682351.03 / /
(3) Impairment provision for construction in progress
RMB
Item Opening Increased Decreased Closingbalance amount amount balance
Shandong Heyuan - reservoir renovation 2023625.36 2023625.36
Tieling Wellhope Food — renovation project for annual slaughtering capacity of 50 million
broilers 4039800.00 4039800.00
Total 6063425.36 6063425.36
179 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
23. Productive biological asset
(1) Productive biological assets measured at cost
RMB
Livestock industry
Item Broiler breeder Breeding pig Layer Breeding Totalcow
A. Original value
1. Opening balance 102912747.10 145178060.19 15954521.45 4333540.02 268378868.76
2. Increased amount 339085369.27 248136490.50 4498091.90 3728181.42 595448133.09
(1) Externally purchased 100423852.98 94258729.29 194682582.27
(2) Breeding by own
farm 145561444.91 153877761.21 4498091.90 3728181.42 307665479.44
(3) Increased by
business combination 93100071.38 93100071.38
3. Decreased amount 283221025.00 241542646.26 17465766.75 2421761.55 544651199.56
(1) Disposed 283221025.00 182706331.49 17465766.75 2290235.03 485683358.27
(2) Transfer to
consumable biological 58836314.77 131526.52 58967841.29
assets
4. Closing balance 158777091.37 151771904.43 2986846.60 5639959.89 319175802.29
B. Accumulated
depreciation
1. Opening balance 22976765.69 25072830.27 3570265.26 404096.94 52023958.16
2. Increased amount 137238714.93 42967963.03 6366489.27 421354.38 186994521.61
(1) Provision 117855133.15 42967963.03 6366489.27 421354.38 167610939.83
(2) Increased by
business combination 19383581.78 19383581.78
3. Decreased amount 136942931.24 40648469.65 9195031.12 51880.89 186838312.90
(1) Disposed 136942931.24 28269262.10 9195031.12 51880.89 174459105.35
(2) Other 12379207.55 12379207.55
4. Closing balance 23272549.38 27392323.65 741723.41 773570.43 52180166.87
C. Impairment provision
1. Opening balance
2. Increased amount 31169290.30 31169290.30
(1) Provision 7430069.81 7430069.81
(2) Increased by
business combination 23739220.49 23739220.49
3. Decreased amount 10683068.63 10683068.63
(1) Disposed 10683068.63 10683068.63
(2) Other
4. Closing balance 20486221.67 20486221.67
D. Book value
1. Closing book value 115018320.32 124379580.78 2245123.19 4866389.46 246509413.75
2. Opening book value 79935981.41 120105229.92 12384256.19 3929443.08 216354910.60
24. Oil and gas assets
Not applicable
25. Right-of-use asset
RMB
Item Buildings and Machinerystructures equipment Land Total
A. Original value
1. Opening balance 546540843.10 87092028.32 88489876.94 722122748.36
180 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
2. Increased amount 145175687.71 115807857.60 80011396.89 340994942.20
(1) New lease 126486979.99 78926803.29 17428403.12 222842186.40
(2) Increased by
business combination 18688707.72 36881054.31 62582993.77 118152755.80
3. Decreased amount 71441339.58 31858125.81 3874587.41 107174052.80
(1) Lease expiration 71441339.58 31858125.81 3874587.41 107174052.80
4. Closing balance 620275191.23 171041760.11 164626686.42 955943637.76
B. Accumulated
amortization
1. Opening balance 120876496.85 17564598.07 36187753.90 174628848.82
2. Increased amount 60822184.96 30174942.23 22998582.61 113995709.80
(1) Provision 57200099.99 20182460.99 17934558.88 95317119.86
(2) Increased by
business combination 3622084.97 9992481.24 5064023.73 18678589.94
3. Decreased amount 35224589.88 2108066.00 1452100.00 38784755.88
(1) Disposed 35224589.88 2108066.00 1452100.00 38784755.88
4. Closing balance 146474091.93 45631474.30 57734236.51 249839802.74
C. Impairment
provision
D. Book value
1. Closing book value 473801099.30 125410285.81 106892449.91 706103835.02
2. Opening book value 425664346.25 69527430.25 52302123.04 547493899.54
26. Intangible assets
RMB
Item Land use rights Computer softwareand other Total
A. Original value
1. Opening balance 465610247.06 30858258.93 496468505.99
2. Increased amount 223713516.41 18207658.19 241921174.60
(1) Purchased 35179938.28 12190447.31 47370385.59
(2) Increased by business
combination 188533578.13 6017210.88 194550789.01
3. Decreased amount 43155056.91 132785.13 43287842.04
(1) Disposed 7484319.22 132785.13 7617104.35
(2) Transferred to
investment property 35670737.69 35670737.69
4. Closing balance 646168706.56 48933131.99 695101838.55
B. Accumulated
amortization
1. Opening balance 89417305.07 13805377.61 103222682.68
2. Increased amount 28514812.08 6616419.88 35131231.96
(1) Provision 14092262.95 3554427.81 17646690.76
(2) Increased by business
combination 14422549.13 3061992.07 17484541.20
3. Decreased amount 5785464.10 125320.41 5910784.51
(1) Disposed 1035523.42 125320.41 1160843.83
(2) Transferred to
investment property 4749940.68 4749940.68
4. Closing balance 112146653.05 20296477.08 132443130.13
C. Impairment provision
D. Book value
1. Closing book value 534022053.51 28636654.91 562658708.42
2. Opening book value 376192941.99 17052881.32 393245823.31
181 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
27. Goodwill
(1) Original value of goodwill
RMB
Increased amount
Name of investee or matter giving rise to Opening Resulting from
goodwill balance business Closing balance
combination
Dalian Zhongjia Food Company 290425.67 290425.67
Shandong Fengkang Food Company 17594587.49 17594587.49
Dazhou Wellhope Biotechnology Company 1979591.74 1979591.74
Anshan Jiuguhe Food Company and 12 other
companies 27168397.13 27168397.13
Hebei Taihang Wellhope Feed Company 810833.46 810833.46
Total 19864604.90 27979230.59 47843835.49
(2) Impairment provision for goodwill
RMB
Invested entity or matters forming Opening balance Increased amount
Decreased
goodwill amount Closing balanceProvision Disposal
Anshan Jiuguhe Food Company
and 12 other companies 372389.56 372389.56
Shandong Fengkang Food
Company 17594587.49 17594587.49
Total 17966977.05 17966977.05
(3) Other explanations:
Note: The above goodwill mainly arose from business combinations not under common control. The
goodwill was recognized for the amount by which the combination cost paid by the Company exceeded
the Company’s share of the fair value of the acquiree’s identifiable net assets.The Company determines the recoverable amount of the relevant asset group using the present value of
estimated future cash flows. Cash flow projections for the next five years are based on financial budgets
approved by management with an estimated cash flow growth rate of 0.00% applied for subsequent
years (previous period: 0.00%). The above financial budgets are prepared by management based on past
performance and its expectations of market development. Based on the results of the impairment test the
balance of provision for impairment of goodwill at the end of the reporting period amounted to RMB
17966977.05.
28. Long-term deferred expenses
RMB
Item Opening balance Increased amount Amortizedamount Closing balance
Land preparation costs 4865366.46 2935759.44 3446846.71 4354279.19
Improvements to fixed assets 41508378.59 34942208.76 17486926.30 58963661.05
Other 19027261.02 14413992.94 12619535.28 20821718.68
Total 65401006.07 52291961.14 33553308.29 84139658.92
29. Deferred tax assets /deferred tax liabilities
(1) Deferred tax assets before offsetting
RMB
Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary assets temporary assets
182 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
difference difference
Provision for the
impairment of assets 41257756.83 8525564.86 41909351.47 8682373.14
Provision for credit
impairment 155715998.81 34273480.19 239715227.47 50322619.56
Unrealized profit from
internal transactions 12793034.05 3000584.52 13781926.78 3415687.36
Deferred income 31745360.01 4928370.67 36998506.68 5791892.67
Changes in fair value 222471.70 33370.76 202400.00 50600.00
Lease liabilities 197655020.26 49064073.85 212942519.06 52889803.34
Share-based payment 250425.81 47746.22 373420.49 60676.61
Deductible losses 2799177.51 699794.38
Total 442439244.98 100572985.45 545923351.95 121213652.68
(2) Deferred tax liabilities before offsetting
RMB
Closing balance Opening balance
Item Taxabletemporary Deferred tax
Taxable Deferred tax
differences liabilities
temporary
differences liabilities
Book value of assets
exceeds tax base 233762868.94 56071275.56 217702263.91 53566285.70
Total 233762868.94 56071275.56 217702263.91 53566285.70
(3) Deferred tax assets or liabilities presented on a net basis after offsetting
Amount offset
between Balance of Amount offset Balance of
deferred tax deferred tax between deferred deferred tax
assets and assets or tax assets and assets orItem deferred tax liabilities after deferred tax liabilities after
liabilities as of offsetting as of liabilities as of offsetting as of
December 31 December 31 December 31 December 31
2025202520242024
Deferred tax assets 50670664.32 49902321.13 52380617.84 68833034.84
Deferred tax liabilities 50670664.32 5400611.24 52380617.84 1185667.86
(4) Details of unrecognized deferred tax assets
RMB
Item Closing balance Opening balance
Deductible temporary difference 194768733.56 85745387.98
Deductible losses 554926154.01 512408736.36
Total 749694887.57 598154124.34
(5) Deductible tax losses with no deferred tax assets recognized will expire in the following years
RMB
Year Closing balance Opening balance
2026120395492.9155180100.74
202795834971.6183463503.82
2028101934860.29110931053.08
2029161631408.28255180815.70
203067552811.4376653.53
20314294631.454294631.45
20323281978.043281978.04
Total 554926154.01 512408736.36
183 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
30. Other non-current assets
RMB
Closing balance Opening balance
Item
Book balance Impairment Impairmentprovision Book value Book balance provision Book value
Prepayments
for long-term 58356051.31 58356051.31 52743172.87 52743172.87
assets
Prepayments
for farming
fees to 1150690468.97 57534523.47 1093155945.50 525602282.30 26243830.94 499358451.36
contract farms
Total 1209046520.28 57534523.47 1151511996.81 578345455.17 26243830.94 552101624.23
31. Assets subject to restrictions on ownership or right of use
RMB
Closing balance Opening balance
Item
Book balance Book value Type of restriction Book balance Book value Type ofrestriction
Frozen by court order
Bank deposits 3414777.43 3414777.43 and delayed update ofbusiness registration
information
Other monetary
funds 27562178.91 27562178.91 45743263.42 45743263.42
Including: Futures
margin deposits 27561467.35 27561467.35 Deposited as margin 19700245.12 19700245.12
Deposited
as margin
Letter of credit Deposited
margin deposits 7.18 7.18 Deposited as margin 5106257.99 5106257.99 as margin
Funds in securities
accounts 704.38 704.38 Deposited as margin 20936760.31 20936760.31
Deposited
as margin
Fixed assets 632907136.04 632907136.04 Mortgaged 192584707.96 192584707.96 Mortgaged
Intangible assets 81228213.25 81228213.25 Mortgaged 24850032.42 24850032.42 Mortgaged
Construction in
process 171039750.50 171039750.50 Mortgaged
Total 916152056.13 916152056.13 / 263178003.80 263178003.80 /
Explanation:
During the current period the Company pledged to Bank of China the following equity interests in its
subsidiaries as collateral for the Company’s long-term borrowings from Bank of China: 28.45% equity
interest in Anshan Jiuguhe Food Company 25.56% equity interest in Anshan Fengsheng Food Company
28.45% equity interest in Tai’an Jiuguhe Agriculture Development Company 32.00% equity interest in
Tai’an Fengjiu Animal Husbandry Company 32.00% equity interest in Huludao Jiuguhe Food Company
32.00% equity interest in Huludao Jiuguhe Feed Company 32.00% equity interest in Huludao Jiuguhe
Animal Husbandry Company 32.00% equity interest in Jinzhou Jiufeng Food Company 32.00% equity
interest in Jinzhou Xinfeng Food Company 32.00% equity interest in Linghai Jiuguhe Feed Company
32.00% equity interest in Liaoning Yufeng Biotechnology Company 39.60% equity interest in Anshan
Antai Plastic Products Company and 39.60% equity interest in Anshan Jiuguhe Paper Packaging
Company.
32. Short-term borrowings
RMB
Item Closing balance Opening balance
Mortgage borrowings 105500000.00 66500000.00
184 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Guaranteed borrowings 959777750.46 169094236.21
Unsecured borrowings 793757058.32 330124132.88
Interest payable 1643071.71 1560621.32
Total 1860677880.49 567278990.41
Explanation:
The guaranteed borrowings at the end of the period represented bank borrowings guaranteed by the
Company for its subsidiaries namely Huludao Jiuguhe Food Company Jinzhou Xinfeng Food Company
Liaoning Expert Trading Company Baicheng Wellhope Animal Husbandry Company Shenyang
Huakang Xinxin Food Company Linghai Jiuguhe Feed Company Jinzhou Jiufeng Food Company
Daqing Wellhope Food Company Hainan Wellhope Animal Husbandry Company Lixin Xiangfeng
Agriculture and Animal Husbandry Company Lingyuan Wellhope Animal Husbandry Company Anshan
Jiuguhe Food Company Anshan Fengsheng Food Company Tai’an Jiuguhe Agriculture Development
Company and Tai’an Fengjiu Animal Husbandry Company.The mortgage borrowings at the end of the period represented borrowings of RMB 105.50 million
secured by equipment factory buildings land and other assets of the Company’s subsidiaries namely
Dazhou Wellhope Biotechnology Company Shandong Fengkang Food Company and Anshan Fengsheng
Food Company.
33. Financial liabilities held for trading
Item Closing balance Opening balance
Financial liabilities designated as at fair value through profit
or loss 7718239.77
Total 7718239.77
The change during the current period arose from the contingent consideration agreed between the
Company and the seller for the acquisition of the broiler business in a business combination not under
common control resulting in the recognition of financial liabilities held for trading.
34. Derivative financial liabilities
Not applicable
35. Notes payable
Not applicable
36. Accounts payable
RMB
Item Closing balance Opening balance
Accounts payable related to purchases of goods and
expenses 2047252009.33 1556969201.55
Accounts payable related to long-term assets 150642256.53 72584477.24
Total 2197894265.86 1629553678.79
37．Prepayment
Not applicable
38. Contract liabilities
RMB
Item Closing balance Opening balance
185 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Advance receipts for goods 330822123.20 281430591.89
Total 330822123.20 281430591.89
39. Employee benefits payable
(1) Employee benefits
RMB
Opening Increased Decreased Closing
Item
balance amount amount balance
1. Short-term employee benefits 239446384.79 2213181086.56 2139313634.05 313313837.30
2. Post-employment benefits-defined 1041397.97 135472315.65 135753816.06 759897.56
contribution plans
3. Termination benefits 86000.00 1593638.89 1609638.89 70000.00
Total 240573782.76 2350247041.10 2276677089.00 314143734.86
(2) Short-term employee benefits
RMB
Item Opening balance Increased amount Decreased amount Closing balance
1. Salaries bonuses allowances
and subsidies 236906009.72 2012726162.32 1938340649.21 311291522.83
2. Employee welfare expenses 457669.11 87839165.09 87970363.73 326470.47
3. Social insurance contributions 590474.16 75227461.22 75502942.62 314992.76
Including: Medical insurance
contributions 522491.63 66214015.45 66463343.97 273163.11
Work-related injury insurance
contributions 47229.91 6943433.34 6954992.44 35670.81
Maternity insurance contributions 20752.62 2070012.43 2084606.21 6158.84
4. Housing provident fund
contributions 110694.00 25772280.18 25785620.34 97353.84
5. Trade union funds and
employee education funds 1381537.80 11616017.75 11714058.15 1283497.40
Total 239446384.79 2213181086.56 2139313634.05 313313837.30
(3) Defined contribution plans
RMB
Item Opening balance Increased amount Decreased amount Closing balance
Basic pension insurance
contributions 1010112.54 130906730.77 131180032.20 736811.11
Unemployment insurance
contributions 31285.43 4565584.88 4573783.86 23086.45
Total 1041397.97 135472315.65 135753816.06 759897.56
40. Tax payable
RMB
Item Closing balance Opening balance
Value-added tax 4523047.00 6752457.25
Corporate income tax 47482632.23 35959307.30
Individual income tax 3220298.38 3859929.41
Urban maintenance and construction tax 141620.48 129737.82
Education surcharge 114850.93 102235.47
Real estate tax 2779759.80 2130688.60
Urban land use tax 2226400.53 1749911.58
Stamp tax 6486676.35 4899112.15
Other 1521070.16 883530.78
Total 68496355.86 56466910.36
41. Other payables
(1) Items presented
186 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
RMB
Item Closing balance Opening balance
Interest payable 15562476.40 10369863.01
Other payables 822520619.38 628259826.01
Total 838083095.78 638629689.02
(2) Interest payable
RMB
Item Closing balance Opening balance
Interest payable on convertible bonds 15562476.40 10369863.01
Total 15562476.40 10369863.01
(3) Other payables
RMB
Item Closing balance Opening balance
Operating payables related to expenses and
current account balances 647606760.01 483961450.75
Payables related to investments 25065000.00 14022500.00
Employee stock ownership plan 72100000.00 72100000.00
Balances with external parties 77748859.37 58175875.26
Total 822520619.38 628259826.01
42. Liabilities held for sale
Not applicable
43. Current portion of non-current liabilities
RMB
Item Closing balance Opening balance
Current portion of long-term borrowings 372023099.00 453606051.58
Current portion of long-term payables 38476032.41 15250875.29
Current portion of lease liabilities 66114143.90 28685862.68
Total 476613275.31 497542789.55
44. Other current liabilities
RMB
Item Closing balance Opening balance
Output VAT to be transferred 10741773.29 8223061.85
Total 10741773.29 8223061.85
45. Long-term borrowings
RMB
Item Closing balance Opening balance
Borrowings secured by mortgages 429084895.52 99264210.00
Guaranteed borrowings 353514871.47 389750606.09
Borrowings secured by pledges 151285406.33
Unsecured borrowings 1506914025.00 1407340000.00
Interest payable 2638435.97 1405503.83
Subtotal 2443437634.29 1897760319.92
Less: Current portion of long-term borrowings 372023099.00 453606051.58
Total 2071414535.29 1444154268.34
The guaranteed borrowings at the end of the period represented bank borrowings guaranteed by the
Company for its subsidiaries namely Tai’an Jiuguhe Agriculture Development Company Hebei Taihang
Wellhope Food Company Haicheng Wellhope Animal Husbandry and Feed Company Daqing Wellhope
Food Company Liaoning Qingyuan Wellhope Agriculture and Animal Husbandry Company and Anhui
187 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Wellhope Food Company.The borrowings secured by mortgages represented borrowings of RMB 429.0849 million secured by
mortgages over office buildings dormitory buildings factory buildings equipment and land of the
Company’s subsidiaries namely Anshan Jiuguhe Food Company Anshan Fengsheng Food Company
Liaoning Yufeng Biotechnology Company Hebei Taihang Wellhope Feed Company Pingyuan Wellhope
Food Processing Company Hebei Taihang Wellhope Food Company and Jinzhou Xinfeng Food
Company.The borrowings secured by pledges represented borrowings of RMB 151.2854 million from Bank of
China for which the Company pledged to Bank of China the equity interests in its subsidiaries namely
Anshan Jiuguhe Food Company Anshan Fengsheng Food Company Tai’an County Jiuguhe Agricultural
Development Company Tai’an Fengjiu Animal Husbandry Company Huludao Jiuguhe Food Company
Huludao Jiuguhe Feed Company Huludao Jiuguhe Animal Husbandry Company Jinzhou Jiufeng Food
Company Jinzhou Xinfeng Food Company Linghai Jiuguhe Feed Company Liaoning Yufeng
Biotechnology Company Anshan Antai Plastic Products Company and Anshan Jiuguhe Paper Packaging
Company. The interest rates on bank borrowings ranged from 1.95% to 3.99% and the interest rates on
government borrowings ranged from 3.00% to 10.80%.
46. Bonds payable
(1) Bonds payable
RMB
Item Closing balance Opening balance
Wellhope convertible bond 1386717739.62 1349079789.00
Total 1386717739.62 1349079789.00
188 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(2) Details of bonds payable: (excluding other financial instruments such as preferred shares and perpetual bonds classified as financial liabilities)
RMB
Bond Par Conversion into Whether
name value Coupon rate% Issuing date
Bond Total issuing Opening balance Interest accrued Amortization of Repayment during theterm amount at par value premium/discount period shares during the Closing balance in defaultperiod (Yes/No)
0.3 in year 1
Wellhope 0.5 in year 2
convertible 100.00 1.0 in year 31.5 in year 4 Apr. 22 2022 6 years 1500000000.00 1349079789.00 15562476.40 22213474.22 4000.00 134000.00 1386717739.62 Nobond 1.8 in year 5
2.0 in year 6
Total / / / / 1500000000.00 1349079789.00 15562476.40 22213474.22 4000.00 134000.00 1386717739.62 /
(3) Description of convertible corporate bonds
Bond name Conditions for conversion of shares Conversion time
Wellhope Convertible bonds may be converted into shares starting from the first trading
convertible bond day after six months from the completion of issuance October 28 2022 to April 21 2028
Accounting treatment of convertible corporate bonds and basis for judgment
As approved by the China Securities Regulatory Commission in the Approval for the Public Issuance of Convertible Corporate Bonds the Company publicly issued 15 million convertible
corporate bonds on April 22 2022 at an issue price of RMB 100.00 per bond with an aggregate issue amount of RMB 1.5 billion and a term of six years. With the consent of the ShanghaiStock Exchange the Company’s convertible corporate bonds were listed and traded on the Shanghai Stock Exchange from May 18 2022 under the bond abbreviation “Wellhope ConvertibleBond” and bond code “113647”.The coupon rates of the convertible corporate bonds issued by the Company are as follows: 0.30% for the first year 0.50% for the second year 1.00% for the third year 1.50% for the fourth
year 1.80% for the fifth year and 2.00% for the sixth year. Interest is paid once a year. Upon maturity the principal of all convertible bonds that have not been converted into shares together
with the interest for the final year will be repaid. The bonds have a term of six years from the date of issuance namely from April 22 2022 (T day) to April 21 2028. Interest accrues from the
first day of issuance of the convertible bonds namely April 22 2022 (T day). Each annual interest payment date falls on the anniversary of the first day of issuance of the convertible bonds. If
such date falls on a statutory holiday or non-trading day it will be postponed to the next trading day and no additional interest will accrue during the postponement period.The initial conversion price of the convertible corporate bonds was RMB 10.22 per share. On June 20 2022 the Company repurchased and cancelled 5742000 restricted shares at a
repurchase price of RMB 4.23 per share. Accordingly the Company made a corresponding adjustment to the conversion price of “Wellhope Convertible Bonds” and the conversion price wasadjusted to RMB 10.26 per share from June 23 2022. On May 22 2023 due to the implementation of the Company’s 2022 dividend distribution the conversion price of “WellhopeConvertible Bonds” was adjusted to RMB 10.14 per share from May 26 2023. On June 4 2025 due to the implementation of the Company’s 2024 dividend distribution the conversion price
was adjusted to RMB 10.09 per share from June 10 2025.Pursuant to the relevant provisions of Accounting Standards for Business Enterprises No. 37 — Presentation of Financial Instruments where convertible bonds issued by an enterprise are
non-derivative financial instruments containing both a financial liability component and an equity instrument component the financial liability component and the equity instrument component
shall be measured separately at initial recognition. Accordingly after deducting the allocated issuance expenses the fair value of the financial liability component of the convertible corporate
bonds issued by the Company was RMB 1250956156.48 which was recorded under bonds payable; after deducting the allocated issuance expenses the fair value of the equity instrument
component was RMB238927343.52 which was recorded under other equity instruments.
189 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
47. Lease liabilities
RMB
Item Closing balance Opening balance
Total lease payments 841451146.11 626129851.01
Less: Unrecognized financing expenses 226402979.11 176598390.07
Subtotal 615048167.00 449531460.94
Less: Current portion of lease liabilities 66114143.90 28685862.68
Total 548934023.10 420845598.26
48. Long-term payables
RMB
Item Closing balance Opening balance
Long-term payables 69053798.48 110118599.16
Less: Current portion of long-term
payables 38476032.41 15250875.29
Total 30577766.07 94867723.87
(1) Long-term payables presented by nature
RMB
Item Closing balance Opening balance
Finance lease payables 75259852.87 120762008.91
Unrecognized financing expenses -6206054.39 -10643409.75
Subtotal 69053798.48 110118599.16
Less: Current portion of long-term payables 38476032.41 15250875.29
Total 30577766.07 94867723.87
49. Long-term employee benefits payable
Not applicable
50. Provisions
Not applicable
51. Deferred income
RMB
Item Opening balance Increased Decreasedamount amount Closing balance
Government grant 75291554.80 17688781.90 9785675.49 83194661.21
Total 75291554.80 17688781.90 9785675.49 83194661.21
52. Other non-current liabilities
No applicable
53. Share capital
RMB
Changes (increase or decrease)
Opening balance Closing balance
Others Subtotal
Total shares 919434448.00 -6943315.00 -6943315.00 912491133.00
Other explanations: In 2025 a total of RMB 134000.00 of Wellhope convertible bond were converted
into shares of the Company and the number of shares resulting from the conversion was 13264 shares.The Company has repurchased and disposed of 6956579 shares of employee equity incentives that have
not been utilized.
190 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
54. Other equity instruments
(1) Basic information on preference shares perpetual bonds and other financial instruments
outstanding at the end of the reporting period
With the approval of the China Securities Regulatory Commission [Approval No. 662 (2022)] the
Company publicly issued 15 million convertible corporate bonds on April 22 2022 at an issue price of
RMB 100.00 per bond with a total issuance amount of RMB 1.5 billion and a term of six years. Upon
approval by the Shanghai Stock Exchange the Company’s RMB 1.5 billion convertible corporate bonds
were listed for trading on the SSE on May 18 2022 under the bond abbreviation "Wellhope Convertible
Bond" and bond code "113647".
(2) Changes in preferred shares perpetual bonds and other financial instruments outstanding at
the end of the period
RMB
Decrease during the
Outstanding financial Opening balance period Closing balance
instruments Number Book value Number Bookvalue Number Book value
Wellhope convertible
bond 14670000.00 233670941.96 1380.00 21344.18 14668620.00 233649597.78
Total 14670000.00 233670941.96 1380.00 21344.18 14668620.00 233649597.78
55. Capital reserves
RMB
Item Opening Increase during Decrease during Closingbalance the period the period balance
Capital premium(Share premium) 802830071.13 149400.12 63001213.17 739978258.08
Other capital reserves 5208142.24 1922691.33 7130833.57
Total 808038213.37 2072091.45 63001213.17 747109091.65
Other information including changes during the period and reasons for such changes:
The changes in capital premium for the year were attributable to an increase of RMB 149400.12 arising
from the conversion of the Company’s convertible corporate bonds into shares a decrease of RMB
3514179.82 due to changes in the Company’s share of equity in subsidiaries and a decrease of RMB
59487033.37 in share premium resulting from the cancellation of 6956579 repurchased shares.
The changes in other capital reserves for the year were attributable to share-based payment expenses of
RMB 1573617.48 recognized in connection with the implementation of the employee stock ownership
plan and an increase of RMB 349073.85 arising from equity-accounted investees.
56. Treasury shares
RMB
Item Opening Increased Decreased Closingbalance amount amount balance
Treasury shares 425931323.30 56466476.00 66443612.37 415954186.93
Total 425931323.30 56466476.00 66443612.37 415954186.93
Other information including changes during the period and reasons for such changes:
The decrease in treasury shares for the year was attributable to the cancellation of 6956579 repurchased
but unused shares under the employee equity incentive plan. As of December 31 2025 the Company
191 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
held 47062532 treasury shares. For information on share-based payments please refer to Note 15
“Share-based Payments”.The increase in treasury shares for the year was attributable to the Company’s repurchase of 0.78% of its
shares through centralized bidding transactions.
57. Other comprehensive income
RMB
2025
Item Opening After-tax Closingbalance After-taxPre-tax attributable to attributable to balance
parent company non-controllinginterest
1. Other comprehensive income
that will not be reclassified to -30373020.38 335754.43 335754.43 -30037265.95
profit or loss
Changes in fair value of
investments in other equity -30373020.38 335754.43 335754.43 -30037265.95
instruments
2. Other comprehensive income
that will be reclassified to profit -9276834.71 -20923644.57 -20853090.31 -70554.26 -30129925.02
or loss
Including: Other comprehensive
income that can be transferred in
profit or loss under the equity -9283389.69 -20836986.79 -20766432.53 -70554.26 -30049822.22
method
Exchange differences on
translation of foreign currency 6554.98 -86657.78 -86657.78 -80102.80
financial statements
Total other comprehensive
income -39649855.09 -20587890.14 -20517335.88 -70554.26 -60167190.97
58. Special reserves
Not applicable
59. Surplus reserves
RMB
Item Opening balance Increased amount Decreased amount Closing balance
Statutory surplus reserves 474685527.73 474685527.73
Total 474685527.73 474685527.73
60. Undistributed profits
RMB
Item 2025 2024
Undistributed profits at the end of prior period before adjustment 4724940370.20 4400135075.82
Undistributed profits at the beginning of current period after
adjustment 4724940370.20 4400135075.82
Add: Net profit attributable to the owners of the parent company
in the period 52516855.05 342468141.14
Less: Appropriation to statutory surplus reserve 17662846.76
Dividends payable on common shares 50215141.46
Undistributed profits at the end of current period 4727242083.79 4724940370.20
192 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
61. Operating revenue and cost
(1) Information of revenue and cost
RMB
Item 2025 2024Revenue Cost Revenue Cost
Principal
businesses 35683156750.85 33631959406.77 32499057611.21 30410710308.70
Other businesses 78364175.09 60768291.36 46202426.66 36418856.47
Total 35761520925.94 33692727698.13 32545260037.87 30447129165.17
(2) Breakdown information on revenues and costs
RMB
Contract classification TotalRevenue Cost
By type of goods
Feed products 13459577751.73 12137385674.07
Broiler integration 16185346810.81 15870258326.29
Feed raw materials 1840524517.54 1528517513.73
Swine farming 3545237226.22 3528100442.87
Other businesses 730834619.64 628465741.17
By timing of transfer of goods
Revenue recognized at a point in time 35749225350.78 33682590289.23
Revenue recognized over time 12295575.16 10137408.90
Total 35761520925.94 33692727698.13
Explanation:
The Company sells goods such as feed products broiler products feed raw materials and hogs. Under
the relevant sales contracts the related performance obligations are satisfied at a point in time. For
performance obligations satisfied at a point in time revenue is recognized when the customer obtains
control of the goods.The Company’s asset leasing business involves performance obligations satisfied over time under the
relevant lease contracts. For performance obligations satisfied over time revenue is recognized over the
relevant period based on the progress towards satisfaction of those performance obligations.
62. Taxes and surcharges
RMB
Item 2025 2024
Urban maintenance and construction tax 1895338.17 1058540.77
Education surcharge 1576548.86 827319.94
Real estate tax 21125648.27 14258729.65
Urban land use tax 18456443.58 14462394.77
Stamp tax 28051686.36 20755474.73
Other 7112292.62 5627283.50
Total 78217957.86 56989743.36
63. Selling expenses
RMB
Item 2025 2024
Employee compensation 485961552.33 417792737.12
Travel expenses 126100685.49 123453441.73
Transportation loading and vehicle expenses 14371809.68 12058594.69
Labor service fees 15176127.70 18894539.11
193 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Business entertainment expenses 29749346.96 32813938.44
Business promotion expenses 10557989.56 7821937.19
Lease expenses 8301898.46 7520918.96
Conference expenses 6494597.74 9413004.93
Sales service expenses 29587495.92 33262454.04
Office and communication expenses 12462250.67 8912339.22
Others 48603313.19 38000464.78
Total 787367067.70 709944370.21
64. Administration expenses
RMB
Item 2025 2024
Employee compensation 402582074.01 361675503.74
Depreciation 82720446.77 66057168.08
Office and communication expenses 35588451.05 31100000.92
Business entertainment expenses 27251675.82 23532396.68
Labor service fees 25859029.52 27430054.91
Travel expenses 24663269.74 22862655.36
Amortization of intangible assets 16142080.47 12114506.16
Depreciation of right-of-use assets 13028518.06 16439194.37
Professional service fees 12258660.68 10023670.10
Utilities expenses 11173581.68 10698659.11
Vehicle expenses 10792070.93 10348633.54
Lease expenses 10411932.64 9968636.31
Heating expenses 8472727.74 7745511.30
Amortization of long-term deferred
expenses 7982928.14 17299181.87
Repair and maintenance expenses 7524584.32 17366525.08
Equity incentive expenses 1158251.19 1294411.92
Board expenses 307000.00 458699.92
Others 52808280.90 26114613.64
Total 750725563.66 672530023.01
65. R&D expenses
RMB
Item 2025 2024
Employee compensation 15160026.94 18021292.08
Design and testing expenses 8460110.49 4417180.70
Materials and supplies 1305968.62 1594640.40
Travel expenses 594756.10 1718007.59
Depreciation and amortization expense 2375528.15 2622875.09
Equity incentive expenses 77678.65 26877.94
Others 850602.70 640263.77
Total 28824671.65 29041137.57
66. Financial expenses
RMB
Item 2025 2024
Interest expenses 213400859.71 181050699.18
Including: Interest expense on lease liabilities 35579281.00 28340505.60
Less: Interest income 6113431.52 12294655.57
Net foreign exchange losses -892860.95 -4964099.02
Bank charges 8376240.36 4399325.72
Total 214770807.60 168191270.31
194 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
67. Other income
RMB
Item 2025 2024
Government grants 31764241.09 37800420.98
Service fees for withholding and remitting individual income
tax 440346.01 328257.81
Others 157370.05 326782.73
Total 32361957.15 38455461.52
68. Investment income
RMB
Item 2025 2024
Income from long-term equity investments accounted for using the
equity method 64598021.61 129857217.55
Investment income from disposal of long-term equity investments 388707.56 -184193.74
Investment income from disposal of derivative financial instruments
and others 2981482.72 -2342448.64
Dividend income from investments in other equity instruments
during the holding period 50000.00
Gain arising from remeasurement of the remaining equity interest at
fair value after loss of control 933259.23
Other changes in owners’ equity of the previously held equity
interest accounted for using the equity method before the acquisition 2625000.00
date
Gain or loss arising from remeasurement of the previously held
equity interest at fair value before the acquisition date 114015283.69 6811688.24
Total 182033495.58 137700522.64
69. Gains on net exposure hedges
Not applicable
70. Gains or losses from changes in fair value
RMB
Source of gains or losses from changes in fair value 2025 2024
Financial assets held for trading 1160721.24 -147128.24
Including: Gains or losses from changes in fair value of derivative
financial instruments 1160721.24 -147128.24
Total 1160721.24 -147128.24
71. Credit impairment losses
RMB
Item 2025 2024
Bad debt losses on notes receivable 501881.97 -569252.61
Bad debt losses on accounts receivable -51457605.87 -90097976.51
Bad debt losses on other receivables -10062723.76 -25000819.31
Bad debt losses on other non-current assets 1300902.00 -26243830.94
Total -59717545.66 -141911879.37
72. Asset impairment losses
RMB
Item 2025 2024
Impairment losses on contract assets 6206.80 36520.55
Inventory write-downs and impairment losses on contract
fulfilment costs -186419547.88 -51658722.45
Impairment losses on long-term equity investment -571733.76
Impairment losses on investment properties
195 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Impairment losses on fixed assets -126467.38 -1080906.25
Impairment losses on construction materials
Impairment losses on construction in progress -6856506.99
Impairment losses on productive biological assets -14121475.28
Impairment losses on oil and gas assets
Impairment losses on intangible assets
Impairment losses on goodwill -17966977.05
Others
Total -225484767.78 -53274841.91
73. Gains or losses from disposal of assets
RMB
Item 2025 2024
Gains or losses on disposal of fixed assets construction in
progress productive biological assets and intangible assets not 1637903.85 1358138.02
classified as held for sale
Including: Fixed assets 210355.16 -2604366.95
Intangible assets 877084.57
Productive biological assets -2251448.86 2162371.33
Right-of-use assets 3678997.55 923049.07
Total 1637903.85 1358138.02
74. Non-operating income
RMB
Amount included in
Item 2025 2024 non-recurring profit
or loss for the period
Income from penalties and liquidated damages 15737528.98 16260608.98 15737528.98
Government grants unrelated to the Company’s
ordinary activities 1332759.90 1628125.30 1332759.90
Gains on damage and retirement of non-current
assets 306229.65 605344.55 306229.65
Gains from business combinations not under
common control 3443489.11 3443489.11
Others 12892101.66 8059683.08 12892101.66
Total 33712109.30 26553761.91 33712109.30
75. Non-operating expenses
RMB
Amount included in
Item 2025 2024 non-recurring profit
or loss for the period
Donation expenses 5285790.71 6101548.00 5285790.71
Extraordinary losses 6075337.02 9516356.91 6075337.02
Losses on damage and retirement of
non-current assets 21454128.41 24962020.56 21454128.41
Indemnity payments liquidated damages and
fines 5211376.39 27447447.40 5211376.39
Others 2802521.27 8236959.86 2802521.27
Total 40829153.80 76264332.73 40829153.80
76. Income tax expenses
(1) Table of income tax expenses
RMB
Item 2025 2024
Current income tax expenses 117729661.81 102349023.79
196 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Deferred income tax expenses 19349471.51 -18741044.07
Total 137079133.32 83607979.72
(2) Reconciliation of accounting profit and income tax expense
RMB
Item 2025
Profit before tax 133761879.22
Income tax expense calculated at the statutory/applicable tax rate 20064281.88
Effect of different tax rates applicable to subsidiaries 120586885.76
Effect of adjustments to income tax for prior periods 1303790.42
Effects of non-taxable income -29973222.54
Effect of non-deductible costs expenses and losses 34672458.75
Effect of utilization of previously unrecognized deductible tax losses -28658659.49
Effect of deductible temporary differences or deductible tax losses for
which no deferred tax assets were recognized in the current period 26735589.67
Additional tax deduction for R&D expenses -4187000.42
Other -3464990.71
Income tax expense 137079133.32
77. Other comprehensive income
Details of each item of other comprehensive income including its income tax effects reclassification to
profit or loss and related reconciliations are set out in Note VII.57 “Other Comprehensive Income”.
78. Items in cash flow statement
(1) Cash related to operating activities
a.Other cash received relating to operating activities
RMB
Item 2025 2024
Government grants 40345815.71 43704939.11
Interest income 6113431.52 12294655.57
Current account transactions and
others 370304042.02 337298970.82
Total 416763289.25 393298565.50
b.Other cash payments relating to operating activities
RMB
Item 2025 2024
Travel expenses 135476535.38 129842486.09
Transportation and loading expenses 74740017.11 59441109.58
R&D expenditure 2672447.05 7319370.90
Business entertainment expenses 43036110.41 40872751.34
Office and communication expenses 37238505.70 33793881.52
Labor service fees 34399852.54 68733237.47
Payments for other operating current
account transactions and expenses 761271251.73 594832111.56
Total 1088834719.92 934834948.46
(2) Cash related to investing activities
a. Other cash received relating to investing activities
RMB
Item 2025 2024
Recovery of loans extended to external parties 36799642.00
197 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Net cash received from acquisition of subsidiaries 2413976.09 2409207.07
Total 39213618.09 2409207.07
b. Other cash payments relating to investing activities
RMB
Item 2025 2024
Increase in margin deposits for futures trading 6744972.54 15187238.45
Net cash paid for disposal of subsidiaries 436626.02
Total 6744972.54 15623864.47
(3) Cash related to financing activities
a.Other cash received relating to financing activities
RMB
Item 2025 2024
Proceeds from borrowings from external parties 13450000.00 2960597.00
Cash received from the share repurchase account 14481905.09 1591861.08
Cash received from partial disposal of equity interests in subsidiaries 12753598.45
Total 27931905.09 17306056.53
b.Other cash payments relating to financing activities
RMB
Item 2025 2024
Payments for share repurchases 50000000.00 310000000.00
Cash paid to acquire non-controlling interests in subsidiaries 20324962.32 32688105.14
Payments to minority shareholders upon company deregistration 5410067.98 3586630.89
Repayment of borrowings from external parties 153907398.41 43768878.34
Lease-related payments 117242358.27 79265552.09
Total 346884786.98 469309166.46
c.Changes in liabilities arising from financing activities
RMB
Increase during the period Decrease during the period
Item Opening balance Closing balance
Cash changes Non-cash changes Cash changes Non-cashchanges
Short-term
borrowings 567278990.41 2666351788.78 707454316.02 1975653783.32 107914025.00 1860677880.49
Long-term loans 1444154268.34 584718198.90 513898438.58 128385201.68 342971168.85 2071414535.29
Long-term
payables 94867723.87 14693503.78 40188452.94 38795008.64 30577766.07
Lease liabilities 420845598.26 299834595.86 77053905.33 94692265.69 548934023.10
Interest payable 10369863.01 57646641.25 14670757.10 37783270.76 15562476.40
Current portion
of non-current 497542789.55 476613275.31 497542789.55 476613275.31
liabilities
Dividends
payable 27001111.08 27001111.08
Other payables
– amounts due
to external 58175875.26 13450000.00 163586611.62 154770170.43 2693457.08 77748859.37
parties
Total 3093235108.70 3264519987.68 2260728493.50 2915266171.43 624849196.02 5081528816.03
79. Supplementary information of cash flow statement
(1) Supplementary information
RMB
198 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Further information 2025 2024
1. Reconciliation of net profit to net cash flows from
operating activities
Net profit -3317254.10 310296050.36
Add: Assets impairment provision 225484767.78 53274841.91
Credit impairment losses 59717545.66 141911879.37
Depreciation of fixed assets depletion of oil and gas assets
depreciation of productive biological assets 712311011.17 525039339.02
Amortization of right-of-use assets 95317119.86 72500103.76
Amortization of intangible assets 17646690.76 16307671.42
Amortization of long-term deferred expenses 33553308.29 41842291.04
Losses on disposal of fixed assets intangible assets and
other long-term assets -1637903.85 -1358138.02
Losses on retirement of fixed assets 21147898.76 24356676.01
Losses on changes in fair value -1160721.24 147128.24
Financial expenses 213400859.71 181050699.18
Investment losses -182033495.58 -137700522.64
Decrease in deferred income tax assets 18930713.71 -18847709.34
Increase in deferred tax liabilities 4214943.38 106665.27
Decrease in inventories -139993020.99 -96166046.05
Decrease in operating receivables -153771071.38 321180792.72
Increase in operating payables -246618090.44 -258913206.47
Others 7903106.41 1871980.75
Net cash flow from operating activities 681096407.91 1176900496.53
2. Net change in cash and cash equivalents
Closing balance of cash 1689182180.39 1748491877.60
Less: Opening balance of cash 1748491877.60 1895034560.64
Add: Closing balance of cash equivalent
Less: Opening balance of cash equivalent
Net increase in cash and cash equivalents -59309697.21 -146542683.04
(2) Net cash paid for acquisition of subsidiaries during the period
RMB
Amount
Cash or cash equivalents paid for business combinations occurring in current period 547640000.00
Including: Hebei Taihang Wellhope Feed Company 75900000.00
Anshan Jiuguhe Food Company and 12 other companies 471740000.00
Qingdao Shenfeng Animal Husbandry Company
Less: Cash and cash equivalents held by subsidiaries at the acquisition date 131618244.72
Including: Hebei Taihang Wellhope Feed Company 30458363.04
Anshan Jiuguhe Food Company and 12 other companies 98745905.59
Qingdao Shenfeng Animal Husbandry Company 2413976.09
Add: Cash or cash equivalents paid in the current period for business combinations
occurring in prior periods
Net cash paid for acquisition of subsidiaries 416021755.28
(3) Net cash received from disposal of subsidiaries during current period
RMB
Amount
Cash or cash equivalents received in the current period for the disposal of subsidiaries
in the reporting period
Less: Cash and cash equivalents held by subsidiaries at the date of loss of control
199 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Add: Cash or cash equivalents received in the current period from the disposal of
subsidiaries in prior periods 19377540.00
Net cash received from disposal of subsidiaries 19377540.00
(4) Composition of cash and cash equivalents
RMB
Item Closing balance Opening balance
A. Cash 1689182180.39 1748491877.60
Including: Cash on hand 34234.73 339635.02
Bank deposits readily available for payment 1689147945.66 1748152242.58
B. Cash equivalent
C. Closing balance of cash and cash equivalents 1689182180.39 1748491877.60
Including: Cash and cash equivalents restricted from use by the
parent company or subsidiaries
80. Notes to items in the statement of changes in owners’ equity
Details of any “Other” item that adjusted the balance at the end of the prior year including the item
name and adjustment amount:
The Company had no “Other” item adjusting the balance at the end of the prior year.
81. Foreign currency monetary items
(1) Foreign currency monetary items
RMB
Item Closing balance of Translating Closing balanceforeign currency exchange rate translated into RMB
Cash and bank balances - - 116933495.80
Including: US Dollar 11358436.34 7.0288 79836177.35
Euro 82.82 8.2355 682.06
Hong Kong Dollar 41071540.04 0.90322 37096636.39
Accounts receivable - - 55240240.34
Including: US Dollar 4853589.15 7.0288 34114907.42
Hong Kong Dollar 23388911.80 0.90322 21125332.92
Accounts payable - - 696683.90
Including: US Dollar 99118.47 7.0288 696683.90
Other payables - - 367195.32
Including: US Dollar 1700.00 7.0288 11948.96
Hong Kong Dollar 393311.00 0.90322 355246.36
Short-term borrowings - - 30834714.84
Including: US Dollar 4386910.26 7.0288 30834714.84
(2) Explanation of foreign operation
Principal place Basis for determining
Name of foreign operation of business Functional
overseas currency
the functional
currency
Singapore Golden Harvesta Trading
Company Singapore US Dollar
Primary currency of
operations
82. Leases
(1) As lessee
Lease expenses for short-term leases or leases of low-value assets accounted for using the simplified
approach：
200 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
RMB 18516916.20
Total cash outflows related to leases:
RMB 102855052.00
(2) As lessor
Operating leases as lessor:
RMB
Including: Income relating to
Item Lease income variable lease payments not
included in lease receipts
Lease income 12295575.16
Total 12295575.16
Undiscounted lease receivables for the next five years:
RMB
Undiscounted annual lease receivables
Item
Closing balance Opening balance
First year 24201262.05 7679022.68
Second year 24379183.72 8019022.75
Third year 20194161.52 8019022.75
Fourth year 18555323.60 8019022.75
Fifth year 17392338.02 5288170.15
The total amount of undiscounted
lease receivables after five years 94082419.45 19949290.65
83. Data resources
Not applicable
84. Others
Not applicable
VIII. R&D expenditure
1. By nature of expenses
RMB
Item 2025 2024
Employee compensation 15160026.94 18021292.08
Design and testing expenses 8460110.49 4417180.70
Materials and supplies 1305968.62 1594640.40
Travel expenses 594756.10 1718007.59
Depreciation and amortization 2375528.15 2622875.09
Equity incentive expenses 77678.65 26877.94
Others 850602.70 640263.77
Total 28824671.65 29041137.57
Including: Expensed R&D expenditure 28824671.65 29041137.57
Capitalized R&D expenditure
IX. Changes in the scope of consolidation
1. Business combinations not under common control
(1) Business combinations not under common control in the reporting period
RMB
Date of Cost of equity Percentage Method of Acquisition Basis for Revenue of the Net profit of Cash flows ofName of acquiree equity acquisition of equity equity date determining acquiree from the acquiree the acquiree
201 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
acquisition acquired % acquisition the acquisition date from from
acquisition to period end acquisition acquisition
date date to period date to period
end end
Purchase of
Hebei Taihang Wellhope May 31
202576431439.3496.00
equity and May 31 Transfer of 154198576.48 -3043566.23 9052868.61
Feed Company capital 2025 control
increase
Anshan Jiuguhe Food
April 1 1110079141.41 70.00 Purchase of April 1 Transfer ofCompany and 12 other 2025 equity 2025
9686935487.85-87355759.65133799094.16
control
companies
Qingdao Shenfeng
November
Animal Husbandry 22500000.00 63.00
Purchase of November Transfer of 9158014.77 -3652096.13 717738.98
30 2025 equity 30 2025 control
Company
(2) Cost of combination and goodwill
RMB
Hebei Taihang Anshan Jiuguhe Qingdao Shenfeng
Consideration transferred Wellhope Feed Food Company
Company and 12 other
Animal Husbandry
companies Company
--Cash 75900000.00 471740000.00 9000000.00
--Fair value of non-cash assets
--Fair value of liabilities incurred or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration 7495768.07
--Fair value of previously held equity interest
at the acquisition date 531439.34 630843373.34 13500000.00
Total cost of combination 76431439.34 1110079141.41 22500000.00
Less: Share of fair value of identifiable net
assets acquired 75620605.88 1082910744.28 25943489.11
Goodwill/amount by which the cost of
combination is less than the share of fair 810833.46 27168397.13 -3443489.11
value of identifiable net assets acquired
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
RMB
Hebei Taihang Wellhope Feed Anshan Jiuguhe Food Company Qingdao Shenfeng Animal
Company and 12 other companies Husbandry Company
Fair value at Book value at Fair value at Book value at Fair value at Book value at
acquisition date acquisition date acquisition date acquisition date acquisition date acquisition date
Assets: 126446614.35 126446614.35 5393442519.06 5174565988.44 66939111.39 51890480.98
Cash and bank balances 30458363.04 30458363.04 100854450.59 100854450.59 2413976.09 2413976.09
Accounts receivable 393315494.28 393315494.28 12561119.35 12560759.34
Prepayments 8206000.00 8206000.00 79826874.58 79826874.58 246214.62 246214.62
Other receivables 10000.00 10000.00 1458114361.30 1458114361.30 536636.48 536622.02
Inventories 844843833.23 839258155.26 15114717.46 29463798.66
Other current assets 78443154.64 78443154.64
Long-term receivables 500000.00 500000.00
Long-term equity investments 25114681.78 25114681.78
Investments in other equity instruments 20378570.70 20378570.70
Fixed assets 691317.27 691317.27 1316385754.22 1134798244.64 13435407.62 5233696.93
Construction in progress 58704357.45 58704357.45 138687164.35 138687164.35
Productive biological assets 49977269.11 49977269.11
Right-of-use assets 99474165.86 99474165.86
Intangible assets 27887850.44 27887850.44 131235265.61 99531922.54 17943131.76 384472.70
Long-term deferred expenses 488726.15 488726.15 18993595.18 18993595.18 660311.68 660311.68
202 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Deferred tax assets 120439.06 120439.06 4027596.33 390628.94
Other non-current assets 637177444.57 637177444.57
Liabilities: 47675149.89 47675149.89 3846427170.09 3878931360.20 25429528.81 18989436.37
Short-term borrowings 704755189.36 704755189.36
Accounts payable 846388687.40 846388687.40 10199208.18 10199208.18
Advances from customers 382593.31 382593.31
Contract liabilities 63931794.91 63931794.91
Employee compensation payable 182338.28 182338.28 55453474.48 55453474.48 1740937.91 1740937.91
Taxes payable 2055.87 2055.87 3764616.27 3764616.27 163117.33 163117.33
Other payables 27936155.74 27936155.74 1717071606.24 1717071606.24 6444020.20 6444020.20
Current portion of non-current liabilities 36916837.72 36916837.72
Other current liabilities 1744232.63 1744232.63
Long-term loans 19554600.00 19554600.00 335376842.71 335376842.71
Lease liabilities 78690295.93 78690295.93
Long-term payables 1390229.00 1390229.00
Deferred income 33447553.55
Deferred tax liabilities 943363.44 6499651.88 59559.44
Net assets 78771464.46 78771464.46 1547015348.97 1295634628.24 41509582.58 32901044.61
Less: Non-controlling interests
Net assets acquired 78771464.46 78771464.46 1547015348.97 1295634628.24 41509582.58 32901044.61
(4) Gains or losses arising from remeasurement of equity interests held before the acquisition
date at fair value
RMB
Method and
Amount of
key
other
Date of assumptions
acquisition Percentage comprehensiveGain or loss used to
of the of the Method of income related
previously previously Cost of acquisition
Book value of arising from determine
acquisition of the Fair value of to the
of the previously the previously remeasurement the fairheld held equity the previouslyAcquiree equity held equity interest
previously held previously held
held equity held equity of the value of the
interest before the equity interest interest at the equity interestinterest interest at the previously held previouslybefore the
before the acquisition date
before the
acquisition date acquisition date
reclassified to
equity interest held equity
acquisition acquisition acquisition date investmentat fair value interest at
date date (%) income orthe
retained
acquisition
earnings
date
Hebei Taihang Wellhope April 1
2024 30 900000.00Corporate division 531439.34 531439.34
Based on
Feed Company book value
Anshan Jiuguhe Food Establishment by
2009 - Based on
Company and 12 other 38-44.44 221643137.88 investment and 517990197.93 630843373.34 112853175.42 transaction -353028.292023
companies others price
Qingdao Shenfeng Animal July 25 37.5 3750000.00 Establishment by
Based on
12337891.73 13500000.00 1162108.27 transaction
Husbandry Company 2005 investment price
2. Business combinations under common control
Not applicable
3. Reverse acquisitions
Not applicable
4. Disposal of subsidiaries
Not applicable
203 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
5. Changes in the scope of consolidation for other reasons
(1) New subsidiaries included in the scope of consolidation during the period
Company name Reason for inclusion in the scope ofconsolidation
Tai’an Jiuguhe Agriculture Development Company Business combination not undercommon control
Anshan Jiuguhe Food Company Business combination not undercommon control
Huludao Jiuguhe Animal Husbandry Company Business combination not undercommon control
Anshan Fengsheng Food Company Business combination not undercommon control
Linghai Jiuguhe Feed Company Business combination not undercommon control
Jinzhou Jiufeng Food Company Business combination not undercommon control
Huludao Jiuguhe Feed Company Business combination not undercommon control
Huludao Jiuguhe Food Company Business combination not undercommon control
Jinzhou Xinfeng Food Company Business combination not undercommon control
Liaoning Yufeng Biotechnology Company Business combination not undercommon control
Tai’an Fengjiu Animal Husbandry Company Business combination not undercommon control
Hebei Taihang Wellhope Feed Company Business combination not undercommon control
Anshan Jiuguhe Paper Packaging Company Business combination not undercommon control
Anshan Antai Plastic Products Company Business combination not undercommon control
Shenyang Fengjiu Animal Husbandry Company Business combination not undercommon control
Fushun Fengjiu Animal Husbandry Company Business combination not undercommon control
Fushun Xinhe Animal Husbandry Company Business combination not undercommon control
Jinzhou Fengjiu Animal Husbandry Company Business combination not undercommon control
Fushun Juxin Animal Husbandry Company Business combination not undercommon control
Qingdao Shenfeng Animal Husbandry Company Business combination not undercommon control
Shandong Wellhope Agriculture and Animal Husbandry Company Investment
Siping Wellhope Breeding Company Investment
Changchun Hexin Agriculture and Animal Husbandry Company Investment
Shenyang Wellhope Biotechnology Company Investment
Hengshui Jingu Agriculture and Animal Husbandry Company Investment
Kaifeng Jingu Agriculture and Animal Husbandry Company Investment
Yingxian Jingu Agriculture and Animal Husbandry Company Investment
Chicheng Jingu Agriculture and Animal Husbandry Company Investment
Nangong Wellhope Animal Husbandry Company Investment
204 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(2) Subsidiaries no longer included in the scope of consolidation in the current period due to
deregistration
Company name Reason for exclusion fromthe scope of consolidation
Zhejiang Pinghu Wellhope Animal Husbandry Company Deregistration
Chongqing Wellhope Animal Husbandry Company Deregistration
Shenyang Xiangmai E-commerce Company Deregistration
Lingyuan Wellhope Agriculture and Animal Husbandry Company Deregistration
Qiqihar Wellhope Animal Husbandry Company Deregistration
Fuyu Wellhope Layer Company Deregistration
X. Equity in other Entities
1. Equity in subsidiaries
(1) Composition of the Company
RMB 10000
Subsidiary Principal place Registered Place of Nature of Shareholding %of business capital registration business Method of acquisitionDirect Indirect
Haicheng Xinzhongxin Feed
Company Haicheng City 600.00
Haicheng
City Production 51.00 Investment
Dalian Huakang Xinxin Food
Company Dalian City 1600.00 Dalian City Production 65.00 11.00 Investment
Changchun Hengfeng Agriculture and Changchun Changchun
Animal Husbandry Company City 4700.00 City Trade 49.47 Investment
Jinan Xinweita Science and Trade
Company Jinan City 1500.00 Jinan City Trade 62.00 Investment
Henan Wellhope Animal Husbandry
Company Kaifeng City 3000.00 Kaifeng City Production 100.00 Investment
Zhengzhou Wellhope Animal Zhengzhou Zhengzhou
Husbandry Company City 800.00 City Production 100.00 Investment
Zhumadian Wellhope Animal Zhumadian
Husbandry Company City 1000.00
Zhumadian
City Production 90.00 Investment
Jiaozuo Wellhope Feed Company Jiaozuo City 5000.00 Jiaozuo City Production 100.00 Investment
Nanyang Wellhope Feed Company Nanyang City 1000.00 Nanyang City Production 100.00 Investment
Zhangwu Wellhope Agriculture Zhangwu 300.00 ZhangwuDevelopment Company County County Production 60.00 Investment
Heilongjiang Sanjiang Wellhope
Animal Husbandry Company Jixian County 2100.00 Jixian County Production 61.00 Investment
Jixian Expert Trading Company Jixian County 500.00 Jixian County Trade 65.00 Investment
Gongzhuling Wellhope Animal Gongzhuling
Husbandry Company City 3500.00
Gongzhuling
City Production 100.00 Investment
Shenyang Expert Trading Company Shenyang City 1000.00 ShenyangCity Trade 82.00 Investment
Liaoning Skyland Breeding
Equipment Company Shenyang City 2775.00
Shenyang
City Production 100.00 Investment
Shenyang Wellhope Ruminant Feed
Company Shenyang City 550.00
Shenyang
City Production 100.00 Investment
Shenyang Wellhope Extruded Feed Shenyang City 3300.00 ShenyangCompany City Production 100.00 Investment
Shenyang Wellhope Aquatic Feed Shenyang City 1500.00 ShenyangCompany City Production 100.00 Investment
Shenyang Jiahe Tianfeng Trading
Company Shenyang City 1000.00
Shenyang
City Trade 100.00 Investment
Liaoning Wellhope Food Company Beipiao City 5000.00 Beipiao City Production 100.00 Investment
Haicheng Wellhope Animal
Husbandry Feed Company Haicheng City 1250.00
Haicheng
City Production 100.00 Investment
Tai’an Wellhope Feed Company Tai’an County 3200.00 Tai’anCounty Production 100.00 Investment
Lingyuan Wellhope Animal Lingyuan
Husbandry Company Lingyuan City 500.00 City Production 90.50 Investment
Beijing Wellhope Animal Husbandry
Technology Company Beijing City 500.00 Beijing City Trade 100.00 Investment
Beijing Sanyuan Wellhope Animal
Husbandry Company Beijing City 1000.00 Beijing City Production 70.00 Investment
Jilin Wellhope Animal Husbandry
Company Jilin City 1600.00 Jilin City Production 100.00 Investment
Jilin Wellhope Pig Breeding Company Gongzhuling GongzhulingCity 1500.00 City Production 100.00 Investment
Daqing Wellhope Bayi Agricultural Daqing City 4000.00 Daqing City Production 90.00 Investment
205 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Science and Technology Company
Mudanjiang Wellhope Animal Mudanjiang Mudanjiang
Husbandry Company City 2300.00 City Production 100.00 Investment
Jinzhou Wellhope Animal Husbandry
Company Jinzhou City 1700.00 Jinzhou City Production 100.00 Investment
Gongzhuling Wellhope Ruminant Gongzhuling Gongzhuling
Feed Company City 500.00 City Production 100.00 Investment
Heilongjiang Wellhope Animal
Husbandry Company Harbin City 12000.00 Harbin City Production 100.00 Investment
Tangshan Wellhope Feed Company Tangshan City 5000.00 TangshanCity Production 95.00 Investment
Cangzhou Helai Technology Company Cangzhou City 500.00 CangzhouCity Production 70.00 Investment
Xi'an Wellhope Feed Science and
Technology Company Xi'an City 500.00 Xi'an City Production 80.00 Investment
Gansu Wellhope Animal Husbandry
Company Wuwei City 4000.00 Wuwei City Production 100.00 Investment
Jining Wellhope Animal Husbandry
Company Jining City 2800.00 Jining City Production 70.00 Investment
Shanghai Wellhope Feed Company Shanghai City 300.00 Shanghai City Production 65.00 Investment
Shanghai Hehong Trading Company Shanghai City 2400.00 Shanghai City Trade 70.00 Investment
Huai’an Wellhope Feed Company Huai’an City 3000.00 Huai’an City Production 100.00 Investment
Qingdao Wellhope Animal Husbandry
Company Pingdu City 3000.00 Pingdu City Production 95.00 Investment
Guangzhou Xiangshun Livestock Guangzhou
Equipment Company City 500.00
Guangzhou
City Production 56.00 Investment
Hainan Wellhope Animal Husbandry Chengmai Chengmai
Company County 9500.00 County Production 60.00 Investment
Fuyu Wellhope Animal Husbandry
Company Fuyu City 4800.00 Fuyu City Production 97.00 Investment
Fuyu Wellhope Taolaizhao Poultry
Breeding Company Fuyu City 2620.00 Fuyu City Production 98.19 Investment
Changchun Wellhope Feed Company Nong'an Nong'anCounty 8600.00 County Production 98.00 Investment
Lankao Wellhope Animal Husbandry Lankao Lankao
Company County 4300.00 County Production 100.00 Investment
Tongliao Wellhope Tianyi Forage
Industry Company Tongliao City 2000.00 Tongliao City Production 51.00 Investment
Liaoning Wellhope Procurement and
Trading Company Shenyang City 3000.00
Shenyang
City Trade 100.00 Investment
Shenyang Wellhope Animal Shenyang City 8210.00 ShenyangHusbandry Company City Production 100.00 Investment
Liaoning Expert Trading Company Shenyang City 8000.00 Shenyang Trade 100.00 Business combination underCity common control
Shenyang Fengmei Biotechnology
Company Shenyang City 5000.00
Shenyang Production 100.00 Business combination underCity common control
Shenyang Pufeng Trading Company Shenyang City 700.00 ShenyangCity Trade 100.00
Business combination under
common control
Shenyang Huawei Pharmaceutical
Company Shenyang City 1000.00
Shenyang Production 51.00 Business combination underCity common control
Liaoning Wellhope Agriculture and
Animal Husbandry Development Shenyang City 10000.00 ShenyangCity Production 100.00
Business combination not
Company under common control
Puyang Wellhope Food Company Puyang City 3500.00 Puyang City Production 60.00 Business combination notunder common control
Jingzhou Wellhope Agricultural
Technology Company Jingzhou City 5000.00 Jingzhou City Production 86.00 Investment
Dalian Heyuan Animal Husbandry
Company Dalian City 10000.00 Dalian City Production 57.00 Investment
Shenyang Nongda Wellhope Feed
Company Shenyang City 4420.00
Shenyang
City Production 100.00 Investment
Dalian Wellhope Feed Company Dalian City 4710.00 Dalian City Production 100.00 Investment
Xingcheng Wellhope Feed Company Xingcheng 8250.00 Xingcheng Production 100.00 Investment
Yunnan Wellhope Feed Company Kunming City 2500.00 KunmingCity Production 100.00 Investment
Liaoning Godaji E-commerce
Company Shenyang City 2000.00
Shenyang
City Trade 100.00 Investment
Anhui Wellhope Animal Husbandry
Company Bozhou City 16000.00 Bozhou City Production 70.00 Investment
Shanxi Wellhope Animal Husbandry
Company Yuanping City 4800.00
Yuanping
City Production 100.00 Investment
Pingyuan Wellhope Food Processing
Company Handan City 20992.00 Handan City Production 100.00 Investment
Dalian Zhongjia Food Company Dalian City 3963.00 Dalian City Production 100.00 Business combination notunder common control
206 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Wellhope Food (Shenyang) Company Shenyang City 500.00 ShenyangCity Production 100.00 Investment
Changchun Wellhope Food Company Changchun 1000.00 ChangchunCity City Production 85.00 Investment
Pingyuan Wellhope Animal
Husbandry Company Handan City 13550.00 Handan City Production 100.00 Investment
Puyang Wellhope Animal Husbandry
Company Puyang City 7600.00 Puyang City Production 100.00 Investment
Beijing Zhuolong Animal Health
Products Trading Company Beijing City 800.00 Beijing City Trade 61.00 Investment
Tangshan Hejia Agriculture and
Animal Husbandry Company Tangshan City 3000.00
Tangshan
City Production 65.00 35.00 Investment
Tangshan Wellhope Technology
Company Tangshan City 3000.00
Tangshan
City Production 70.00
Business combination not
under common control
Shenyang Huakang Xinxin Food Shenyang
Company Shenyang City 200.00 City Production 85.00 Investment
Kaifeng Wellhope Meat Food
Company Kaifeng City 10000.00 Kaifeng City Production 100.00 Investment
Shenyang Huakang Broiler Company Shenyang City 6200.00 ShenyangCity Production 95.00 Investment
Kaifeng Wellhope Agriculture and
Animal Husbandry Technology Kaifeng City 13100.00 Kaifeng City Production 100.00 Investment
Company
Fushun Wellhope Agriculture and
Animal Husbandry Company Fushun City 3000.00 Fushun City Production 100.00 Investment
Shenyang Wellhope Poultry Company Shenyang City 5000.00 ShenyangCity Production 100.00 Investment
Dehui Wellhope Animal Husbandry
Company Dehui City 100.00 Dehui City Production 100.00 Investment
Shulan Wellhope Animal Husbandry
Company Shulan City 8000.00 Shulan City Production 80.00 20.00 Investment
Daqing Bifeng Animal Husbandry
Company Daqing City 1000.00 Daqing City Production 51.00 Investment
Linyi Helai Animal Husbandry
Company Linyi City 3300.00 Linyi City Production 100.00 Investment
Nanchang Wellhope Animal Nanchang
Husbandry Company Nanchang City 1000.00 City Production 65.00 Investment
Anhui Wellhope Haoxiang
Agricultural Development Company Lixin County 5000.00 Lixin County Production 100.00 Investment
Lixin Xiangfeng Agriculture and
Animal Husbandry Company Lixin County 1000.00 Lixin County Production 100.00 Investment
Lixin Hongfeng Agriculture and
Animal Husbandry Company Lixin County 5000.00 Lixin County Production 100.00 Investment
Guangzhou Dashang Trading Guangzhou 1500.00 GuangzhouCompany City City Trade 51.00 Investment
Shandong Heyuan Food Company Weihai City 18000.00 Weihai City Production 100.00 Investment
Wafangdian Yifeng Animal Wafangdian Wafangdian
Husbandry Company City 3500.00 City Production 51.00 Investment
Hebei Deheng Breeding Company Handan City 1700.00 Handan City Production 100.00 Business combination notunder common control
Yangling Wellhope Agriculture and Xianyang
Animal Husbandry Company Xianyang City 4200.00 City Production 100.00
Business combination not
under common control
Dunhua Wellhope Zhongda Animal
Husbandry Company Dunhua City 1000.00 Dunhua City Production 51.00 10.00
Business combination not
under common control
Dunhua Fengda Agriculture and
Animal Husbandry Development Dunhua City 1000.00 Dunhua City Production 51.00 10.00 Business combination not
Company under common control
Anhui Wellhope Food Company Lixin County 5000.00 Lixin County Production 100.00 Investment
Anyang Wellhope Agriculture and
Animal Husbandry Company Anyang City 5500.00 Anyang City Production 100.00 Investment
Hebei Taihang Wellhope Food
Company Baoding City 33534.44 Baoding City Production 92.00 Investment
Chifeng Wellhope Fuxinyuan Food
Company Chifeng City 17000.00 Chifeng City Production 70.00 Investment
Hainan Expert Trading Company Chengmai ChengmaiCounty 1000.00 County Trade 60.00 Investment
Liaoning Qingyuan Wellhope
Agriculture and Animal Husbandry Fushun City 12000.00 Fushun City Production 95.00 Investment
Company
Nanyang Jinwan Animal Husbandry
Company Nanyang City 1250.00 Nanyang City Production 51.00 Investment
Fuzhou Wellhope Xingyuan Animal
Husbandry Development Company Fuzhou City 8000.00 Fuzhou City Production 91.00 Investment
Tianjin Fengyunda Supply Chain
Company Tianjin City 1000.00 Tianjin City Other 100.00 Investment
207 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Daqing Wellhope Food Company Daqing City 1500.00 Daqing City Production 51.00 Investment
Zhumadian Wellhope Agriculture Zhumadian Zhumadian
Development Company City 3191.00 City Production 100.00 Investment
Datong Hejia Agriculture and Animal
Husbandry Company Datong City 2000.00 Datong City Production 65.00 35.00 Investment
Shijiazhuang Hejia Agriculture and Shijiazhuang 2000.00 ShijiazhuangAnimal Husbandry Company City City Production 65.00 35.00 Investment
Fuxin Wellhope Agriculture and
Animal Husbandry Company Fuxin City 3000.00 Fuxin City Production 100.00 Investment
Dalian Hongtu Animal Husbandry
Company Dalian City 1600.00 Dalian City Production 51.00 Investment
Shandong Heyuan Animal Husbandry
Company Weihai City 6000.00 Weihai City Production 100.00 Investment
Wafangdian Huinong Poultry Wafangdian Wafangdian
Company City 6800.00 City Production 52.94 Investment
Luoyang Wellhope Agriculture and
Animal Husbandry Company Luoyang City 7500.00 Luoyang City Production 100.00 Investment
Gongzhuling Wellhope Pig Breeding Gongzhuling 678.00 GongzhulingCompany City City Production 100.00 Investment
Lishu Wellhope Ecological Breeding
Company Siping City 1800.00 Siping City Production 68.50 Investment
Henan Herun Jiufeng Agriculture and
Animal Husbandry Company Kaifeng City 5319.00 Kaifeng City Production 100.00 Investment
Tianjin Expert Trading Company Tianjin City 2500.00 Tianjin City Trade 86.00 Investment
Liaoning Wellhope Egg Industry
Company Anshan City 18000.00 Anshan City Production 85.15 Investment
Shenyang Wellhope Agriculture and
Animal Husbandry Technology Shenyang City 2000.00 ShenyangCity Production 100.00 InvestmentCompany
Shenyang Wellhope Pig Breeding
Company Shenyang City 3000.00
Shenyang
City Production 83.74 Investment
Shenyang Xiaohe Agriculture and Shenyang
Animal Husbandry Company Shenyang City 1000.00 City Production 78.04 Investment
Qingdao Haifeng Animal Husbandry Business combination not
Company Qingdao City 500.00 Qingdao City Production 100.00 under common control
Xi'an Linfeng Shengyi Trading
Company Xi'an City 600.00 Xi'an City Trade 100.00
Business combination not
under common control
Beijing Linfeng Shengyi Trading
Company Beijing City 500.00 Beijing City Trade 60.00 Investment
Fengmei (Shenyang) Biological
High-tech Industry Research Institute Shenyang City 500.00 ShenyangCity Other 100.00 InvestmentCompany
Changsha Wellhope Animal Changsha City 1000.00 ChangshaHusbandry Company City Production 83.00 Investment
Harbin Linfeng Shengyi Trading
Company Harbin City 500.00 Harbin City Trade 51.00 Investment
Lixin Rongfeng Agriculture and
Animal Husbandry Company Bozhou City 5000.00 Bozhou City Production 100.00 Investment
Fuxin Wellhope Agricultural and
Animal Husbandry Technology Fuxin City 50.00 Fuxin City Production 100.00 Investment
Company
Hebei Linfeng Shengyi Trading Tangshan
Company Tangshan City 300.00 City Trade 100.00 Investment
Huairen Dazhuang Breeding Shuozhou
Company Shuozhou City 150.00 City Production 70.00 Investment
Harbin Wellhope Agriculture and
Animal Husbandry Development Harbin City 500.00 Harbin City Production 51.00 Investment
Company
Suihua Wellhope Animal Husbandry
Company Suihua City 5835.00 Suihua City Production 47.30 37.70 Investment
Jilin Dalong Wellhope Animal
Husbandry Company Jilin City 1700.00 Jilin City Production 24.29 26.71 Investment
Daqing Wellhope Animal Husbandry
Company Daqing City 1000.00 Daqing City Production 51.00 Investment
Lankao Skyland Feed Company LankaoCounty 4000.00
Lankao Business combination not
County Production 100.00 under common control
Linyi Wellhope Animal Husbandry
Company Linyi City 1500.00 Linyi City Production 100.00 Investment
Jiyuan Helai Feed Company Jiyuan City 2300.00 Jiyuan City Production 100.00 Investment
Wan’an Wellhope Feed Company Ji’an City 1500.00 Ji’an City Production 52.00 Investment
Baotou Wellhope Animal Husbandry
Company Baotou City 6000.00 Baotou City Production 100.00 Investment
Haicheng New Hongzunda Animal Haicheng City 4400.00 Haicheng Production 51.00 Business combination notHusbandry Company City under common control
Chifeng Wellhope Animal Husbandry Chifeng City 2000.00 Chifeng City Production 96.87 Investment
208 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company
Neihuang County Wellhope Animal
Husbandry Company Anyang City 8000.00 Anyang City Production 75.00 20.00 Investment
Tailai County Wellhope Agriculture
and Animal Husbandry Company Tailai County 20000.00 Tailai County Production 70.00
Business combination not
under common control
Inner Mongolia Xinhaoji Agriculture
and Animal Husbandry Development Xing’an Xing’anLeague 5000.00 League Production 82.63
Business combination not
Company under common control
Zhangjiakou Wellhope Agriculture Zhangjiakou
and Animal Husbandry Company City 7692.00
Zhangjiakou
City Production 100.00
Business combination not
under common control
Tangshan Fengnan District Heyou
Agriculture and Animal Husbandry Tangshan City 3000.00 Tangshan Production 100.00 Business combination not
Company City under common control
Hengshui Hechen Agriculture and Hengshui City 1700.00 HengshuiAnimal Husbandry Company City Production 100.00
Business combination not
under common control
Hengshui Heyou Agriculture and Hengshui City 1000.00 Hengshui Production 16.00 73.00 Business combination notAnimal Husbandry Company City under common control
Shenze County Hezhi Agriculture and
Animal Husbandry Company Shenze County 2000.00
Shenze
County Production 15.00 80.10
Business combination not
under common control
Xinji Heyou Agriculture and Animal Business combination not
Husbandry Company Xinji City 1200.00 Xinji City Production 15.00 85.00 under common control
Hengshui Wellhope Feed Company Hengshui City 2000.00 HengshuiCity Production 80.00 Investment
Hebei New Taihang Wellhope Animal
Husbandry Company Baoding City 10000.00 Baoding City Production 100.00 Investment
Siping Huiliang Wellhope Animal
Husbandry Company Siping City 1000.00 Siping City Production 51.00 Investment
Singapore Golden Harvesta Trading
Company Singapore USD1000.00 Singapore Trade 100.00 Investment
Tangshan Yuekai Livestock Tangshan
Partnership (Limited Partnership) Tangshan City 10.00 City Investment 99.90 Investment
Baicheng Wellhope Animal Baicheng
Husbandry Company Baicheng City 1000.00 City Production 51.00 Investment
Dalian Hefengyuan Animal
Husbandry Company Dalian City 7000.00 Dalian City Production 52.00 33.00 Investment
Dalian Rixin Plumbing and Building
Materials Company Dalian City 4000.00 Dalian City Production 100.00
Business combination not
under common control
Heilongjiang Wellhope Dasenlin Food
Company Qitaihe City 2000.00 Qitaihe City Production 51.00 Investment
Heilongjiang Wellhope Dasenlin
Animal Husbandry Company Qitaihe City 2000.00 Qitaihe City Production 51.00 Investment
Tianjin Weierhao Trading Company Tianjin City 1500.00 Tianjin City Trade 79.00 Investment
Huaibei Wellhope Animal Husbandry
Company Huaibei City 1000.00 Huaibei City Production 62.50 Investment
Tieling Wellhope Food Company Tieling City 3000.00 Tieling City Production 90.00 Investment
Mianyang Wellhope Biotechnology
Company Mianyang City 1000.00
Mianyang
City Production 52.00 Investment
Siping Wellhope Food Company Siping City 10000.00 Siping City Production 70.00 Investment
Hunan Wellhope Agriculture and
Animal Husbandry Company Changsha City 8000.00
Changsha
City Production 100.00 Investment
Shandong Fengkang Food Company Yantai City 15000.00 Yantai City Production 60.00 Business combination notunder common control
Shandong Jiayixiang Agriculture and
Animal Husbandry Technology Weifang City 6800.00 Weifang City Production 40.00 Investment
Company
Dazhou Wellhope Biotechnology
Company Dazhou City 5000.00 Dazhou City Production 40.00
Business combination not
under common control
Wellhope E-Commerce (Liaoning)
Company Shenyang City 1000.00
Shenyang
City Trade 100.00 Investment
Tieling Wellhope Animal Husbandry
Company Tieling City 3000.00 Tieling City Production 100.00 Investment
Lanxi County Fengyuan Agriculture
and Animal Husbandry Company Suihua City 500.00 Suihua City Production 51.00 Investment
Dalian Wellhope Pig Breeding
Company Dalian City 1000.00 Dalian City Production 80.74 Investment
Xingcheng Wellhope Pig Breeding Xingcheng
Company City 1000.00
Xingcheng
City Production 78.84 Investment
Fushun Hexin Animal Husbandry
Company Fushun City 3400.00 Fushun City Production 100.00 Investment
Wellhope Fuxinyuan Supply Chain
(Chifeng) Company Chifeng City 50.00 Chifeng City Trade 100.00 Investment
Chaoyang Hemei Food Company Chaoyang City 500.00 ChaoyangCity Production 100.00 Investment
Xuchang Wellhope Animal Husbandry
Company Yuzhou City 200.00 Yuzhou City Production 100.00 Investment
209 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Jingzhou Jinggu Agriculture and
Animal Husbandry Company Jingzhou City 800.00 Jingzhou City Production 100.00 Investment
Tai’an Jiuguhe Agricultural Tai’an County 4730.00 Tai’an Production 70.00 Business combination notDevelopment Company County under common control
Anshan Jiuguhe Food Company Tai’an County 4320.00 Tai’an Production 70.00 Business combination notCounty under common control
Huludao Jiuguhe Animal Husbandry
Company Huludao City 885.00 Huludao City Production 70.00
Business combination not
under common control
Anshan Fengsheng Food Company Tai’an County 5000.00 Tai’anCounty Production 70.00
Business combination not
under common control
Linghai Jiuguhe Feed Company Jinzhou City 2655.00 Jinzhou City Production 70.00 Business combination notunder common control
Jinzhou Jiufeng Food Company Jinzhou City 8845.00 Jinzhou City Production 70.00 Business combination notunder common control
Huludao Jiuguhe Feed Company Huludao City 200.00 Huludao City Production 70.00 Business combination notunder common control
Huludao Jiuguhe Food Company Huludao City 7370.00 Huludao City Production 70.00 Business combination notunder common control
Jinzhou Xinfeng Food Company Jinzhou City 15000.00 Jinzhou City Production 70.00 Business combination notunder common control
Liaoning Yufeng Biotechnology Tai’an
Company Tai’an County 10519.00 County Production 70.00
Business combination not
under common control
Tai’an Fengjiu Animal Husbandry
Company Tai’an County 2606.00
Tai’an
County Production 70.00
Business combination not
under common control
Hebei Taihang Wellhope Feed Baoding City 8000.00 Baoding City Production 96.00 Business combination notCompany under common control
Anshan Jiuguhe Paper Packaging
Company Tai’an County 1000.00
Tai’an
County Production 70.00
Business combination not
under common control
Anshan Antai Plastic Products Tai’an County 600.00 Tai’an Production 70.00 Business combination notCompany County under common control
Shenyang Fengjiu Animal Husbandry Shenyang City 500.00 Shenyang Production 100.00 Business combination notCompany City under common control
Fushun Fengjiu Animal Husbandry Business combination not
Company Fushun City 1000.00 Fushun City Production 100.00 under common control
Fushun Xinhe Animal Husbandry
Company Fushun City 1000.00 Fushun City Production 100.00
Business combination not
under common control
Jinzhou Fengjiu Animal Husbandry
Company Jinzhou City 1000.00 Jinzhou City Production 100.00
Business combination not
under common control
Fushun Juxin Animal Husbandry
Company Fushun City 1000.00 Fushun City Production 100.00
Business combination not
under common control
Qingdao Shenfeng Animal Husbandry
Company Qingdao City 1000.00 Qingdao City Production 100.00
Business combination not
under common control
Shandong Wellhope Agriculture and
Animal Husbandry Company Jinan City 2000.00 Jinan City Production 100.00 Investment
Siping Wellhope Breeding Company Siping City 2450.00 Siping City Production 51.02 Investment
Changchun Hexin Agriculture and Changchun Changchun
Animal Husbandry Company City 500.00 City Production 51.00 Investment
Shenyang Wellhope Biotechnology Shenyang City 500.00 ShenyangCompany City Trade 70.00 Investment
Hengshui Jingu Agriculture and Hengshui City 100.00 HengshuiAnimal Husbandry Company City Production 80.00 Investment
Kaifeng Jingu Agriculture and Animal
Husbandry Company Kaifeng City 500.00 Kaifeng City Production 100.00 Investment
Yingxian Jingu Agriculture and Shuozhou
Animal Husbandry Company Shuozhou City 200.00 City Production 100.00 Investment
Chicheng Jingu Agriculture and Zhangjiakou 500.00 ZhangjiakouAnimal Husbandry Company City City Production 80.00 Investment
Nangong Wellhope Animal Husbandry
Company Nangong City 5000.00 Nangong City Production 70.00 Investment
Basis for controlling an investee despite holding 50% or less of its voting rights and for not controlling
an investee despite holding more than 50% of its voting rights:
The Company holds a 40% equity interest in Dazhou Wellhope Biotechnology Company and is its single
largest shareholder. In addition the Company has entered into an acting-in-concert agreement with Pu
Guisheng a minority shareholder holding a 26.85% equity interest in the company. As parties acting in
concert the Company has actual control over Dazhou Wellhope Biotechnology Company.The Company holds a 40% equity interest in Shandong Jiayixiang Agriculture and Animal Husbandry
Technology Company and is its single largest shareholder. In addition the Company has entered into an
210 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
acting-in-concert agreement with Weifang Xingefeng Agricultural Science and Technology Company a
minority shareholder holding a 30% equity interest in the company. As parties acting in concert the
Company has actual control over Shandong Jiayixiang Agriculture and Animal Husbandry Technology
Company.
(2) Significant non-wholly owned subsidiary
RMB
Profit or loss
Shareholding of attributable to Dividends declared Closing balance of
Subsidiary non-controlling non-controlling to non-controllinginterests for the non-controllinginterests % interests during the period interestsperiod
Dalian Heyuan
Animal Husbandry 43.00 -65493999.78 237486138.31
Company
Xi’an Wellhope Feed
Science and 20.00 4717098.34 59471346.67
Technology Company
Beijing Sanyuan
Wellhope Animal 30.00 6596968.99 6000000.00 66711623.22
Husbandry Company
Jingzhou Wellhope
Agriculture 14.00 344770.68 7751651.06
Technology Company
211 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(3) Material non-wholly owned subsidiaries
RMB
Subsidiary Closing balance
Opening balance
name Current assets Non-current assets Total assets Current Non-currentliabilities liabilities Total liabilities Current assets Non-current assets Total assets
Current Non-current
liabilities liabilities Total liabilities
Dalian
Heyuan
Animal 476536662.11 1035350558.29 1511887220.40 903539009.15 73284297.91 976823307.06 600831501.67 1129613449.17 1730444950.84 899830391.50 143805279.76 1043635671.26
Husbandry
Company
Xi’an
Wellhope
Feed
Science 258831270.80 86329623.24 345160894.04 47149072.40 655088.30 47804160.70 247122456.14 84846567.59 331969023.73 57553936.61 669920.49 58223857.10
and
Technology
Company
Beijing
Sanyuan
Wellhope
Animal 256373348.48 29611838.93 285985187.41 48364522.21 15248587.81 63613110.02 257950390.94 36774478.40 294724869.34 51665597.14 22713017.01 74378614.15
Husbandry
Company
Jingzhou
Wellhope
Agriculture 55189203.05 61262311.92 116451514.97 56809326.90 606000.00 57415326.90 53433679.48 58949756.86 112383436.34 58775114.55 707000.00 59482114.55
Technology
Company
20252024
Subsidiary name Operating Total Cash flow from Total Cash flow from
Net profit comprehensive Revenue Net profit comprehensive
revenue operating activities operating activities
income income
Dalian Heyuan Animal 3361573915.25 -152311627.39 -152311627.39 139669698.54 2536818974.20 -31226347.39 -31226347.39 244443045.38
Husbandry Company
Xi’an Wellhope Feed Science 742023464.62 23585491.71 23585491.71 43312773.09 914619622.23 25763389.89 25763389.89 26788045.33
and Technology Company
Beijing Sanyuan Wellhope
Animal Husbandry Company 581786339.24 21989896.64 21989896.64 -22899764.91 578509350.57 31098989.32 31098989.32 15140326.25
Jingzhou Wellhope
Agriculture Technology 403553982.92 6129899.61 6129899.61 -4554853.08 361691247.47 7978203.27 7978203.27 5751736.78
Company
212 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
2. Transactions resulting in changes in ownership interests in subsidiaries without loss of control
(1) Description of changes in ownership interests in subsidiaries
During the period the Company transferred equity interests in several subsidiaries including a 16.26%
equity interest in Shenyang Wellhope Pig Breeding Company a 21.96% equity interest in Shenyang
Xiaohe Agriculture and Animal Husbandry Company a 19.26% equity interest in Dalian Wellhope Pig
Breeding Company and a 21.16% equity interest in Xingcheng Wellhope Pig Breeding Company.During the period the Company acquired additional equity interests in several subsidiaries including a
53.23% equity interest in Baotou Wellhope Animal Husbandry Company an 8.67% equity interest in
Chifeng Wellhope Animal Husbandry Company and a 5% equity interest in Tangshan Wellhope Feed
Company.
(2) Effect of the transactions on non-controlling interests and equity attributable to owners of the
parent
RMB
Shenyang Shenyang Xiaohe Dalian Xingcheng
Wellhope Pig Agriculture andAnimal Wellhope Pig Wellhope PigBreeding Breeding Breeding
Company HusbandryCompany Company Company
Purchase cost / disposal
consideration
-Cash 4878000.00 2196000.00 1926000.00 2116000.00
-Fair value of non-cash assets
Total purchase cost / disposal
consideration 4878000.00 2196000.00 1926000.00 2116000.00
Less: Share of net assets of the
subsidiary calculated based on
the proportion of equity 4878000.00 2196000.00 1926000.00 2116000.00
interests acquired / disposed of
Difference
Including: Adjustment to
capital reserve
Adjustment to surplus reserve
Adjustment to undistributed
profits
Baotou Wellhope Chifeng Wellhope
Animal Husbandry Animal
Tangshan
Company Husbandry
Wellhope Feed
Company Company
Purchase cost / disposal consideration
-Cash 16210064.83 555681.00 3559216.49
-Fair value of non-cash assets
Total purchase cost / disposal
consideration 16210064.83 555681.00 3559216.49
Less: Share of net assets of the subsidiary
calculated based on the proportion of 14926690.84 566793.71 3559201.72
equity interests acquired / disposed of
Difference 1283373.99 -11112.71 14.77
Including: Adjustment to capital reserve -1283373.99 11112.71 -14.77
Adjustment to surplus reserve
Adjustment to undistributed profits
213 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
3. Equity in joint ventures or associated companies
(1) Important joint ventures or associated companies
Principal Place of Nature of Shareholding %Company place of Accounting
business registration business Direct Indirect treatment
Beipiao Hongfa Food Company Beipiao Beipiaocity city Production 35.00
Equity
method
Dalian Chengsan Food Group Dalian Equity
Company city Dalian city Production 20.00 method
214 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(2) Financial information of significant joint ventures or associated companies
RMB
Closing balance / Amount for the current period Opening balance / Amount for the prior period
Beipiao Hongfa Dalian Chengsan Food Beipiao Hongfa Food Anshan Jiuguhe Food Tai’an Jiuguhe Agriculture Dalian Chengsan Food
Food Company Group Company Company Company Development Company Group Company
Current assets 1356113387.79 1907127406.19 1469130876.16 805767132.08 663459640.85 1745445351.68
Non-current assets 1621096158.72 668496962.94 1663280904.74 261131707.09 128749797.45 664759590.15
Total assets 2977209546.51 2575624369.13 3132411780.90 1066898839.17 792209438.30 2410204941.83
Current liabilities 767740799.12 964981275.01 1130806995.72 395301799.94 738114901.96 777856537.96
Non-current liabilities 307080750.48 38088220.79 274828323.33 78488218.15 93489376.79
Total liabilities 1074821549.60 1003069495.80 1405635319.05 473790018.09 738114901.96 871345914.75
Non-controlling interests 287891322.24 270016655.60
Equity attributable to
shareholders of parent 1902387996.91 1284663551.09 1726776461.85 593108821.08 54094536.34 1268842371.48
company
Share of net assets calculated
by shareholdings 665835798.92 256932710.22 604371761.65 246436715.16 22476279.85 253768474.30
Adjustment 116569111.62 -900.00 -5434691.52 116569111.62
--Goodwill 116569111.62 116569111.62
--Unrealized profit from
internal transactions -17297.08
--Others -900.00 -5417394.44
Book value of equity
investment in associates 665835798.92 373501821.84 604371761.65 246435815.15 17041588.33 370337585.91
Operating revenue 4243536224.92 4682099177.54 3938341881.82 1874643211.60 2580371133.61 5050838357.48
Net profit 204210500.19 70893171.83 97108329.66 41436500.70 -49430017.94 231743304.61
Total comprehensive income 204210500.19 70893171.83 97108329.66 41436500.70 -49430017.94 231743304.61
Dividends received from
associates during the period 10780000.00 7000000.00 5390000.00 5000000.00
215 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(3) Summarized financial information for immaterial joint ventures and associates
RMB
Closing balance / Amount Opening balance / Amount
for the current period for the prior period
Joint ventures:
Book value of investment 11669191.54 11669191.54
Aggregate amounts calculated based on the shareholding percentage for the following items:
--Net profit 7227355.05 5271581.47
--Other comprehensive income -3301230.00 2024129.06
--Total comprehensive income 3926125.05 7295710.53
Associates:
Book value of investment 1017189468.72 2473226163.87
Aggregate amounts calculated based on the shareholding percentage for the following items:
--Net profit -17716536.73 61214934.13
--Other comprehensive income -21190015.08 -2827128.67
--Total comprehensive income -38906551.81 58387805.46
Other explanation: Unphung Joint Venture Company Nepal Wellhope Agri-tech Pvt. Ltd. Nexus
Well-hope Agritech International Limited use cost method.XI. Government grants
1. Liability items related to government grants
RMB
Financial Opening Amount of new
Amount
transferred to Closing Related to
statement item balance grants duringthe period other income balance assets/incomeduring the period
Deferred income 75291554.80 17688781.90 9785675.49 83194661.21 Assets
Total 75291554.80 17688781.90 9785675.49 83194661.21 /
2. Government grants recognized in profit or loss for the reporting period
RMB
Type 2025 2024
Asset-related 9785675.49 8603571.54
Income-related 28480323.52 40790123.39
Total 38265999.01 49393694.93
XII. Risks Relating to Financial Instruments
1. Risks arising from financial instruments
The risks associated with the Company’s financial instruments arise from various financial assets and
financial liabilities recognized in the course of its operations including credit risk liquidity risk and
market risk.The Company’s management is responsible for establishing the objectives and policies for managing
risks associated with financial instruments. The operating management is responsible for day-to-day risk
management through functional departments. For example the Company’s Credit Management
Department reviews each credit sale transaction on a case-by-case basis. The Company’s Internal Audit
Department monitors the implementation of the Company’s risk management policies and procedures on
an ongoing basis and reports relevant findings to the Audit Committee in a timely manner.The overall objective of the Company’s risk management is to formulate risk management policies that
216 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
minimize risks associated with financial instruments to the greatest extent possible without unduly
compromising the Company’s competitiveness and adaptability.
1. Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to discharge its obligations
causing financial loss to the other party. The Company’s credit risk mainly arises from cash and bank
balances notes receivable accounts receivable receivables financing other receivables contract assets
debt investments and long-term receivables. The credit risk of these financial assets arises from
counterparty default and the maximum exposure to credit risk is equal to the book value of these
instruments.The Company’s cash and bank balances are mainly deposited with financial institutions such as
commercial banks. The Company believes that these commercial banks have sound credit standing and
asset quality and therefore the related credit risk is low.For notes receivable accounts receivable receivables financing other receivables contract assets debt
investments and long-term receivables the Company has established policies to control its exposure to
credit risk. The Company assesses customers’ creditworthiness based on their financial condition the
availability of guarantees from third parties credit history and other factors such as prevailing market
conditions and grants appropriate credit terms accordingly. The Company regularly monitors customers’
credit records. For customers with poor credit records the Company adopts measures such as written
collection notices shortening credit terms or withdrawing credit terms so as to ensure that its overall
credit risk remains within a controllable range.
(1) Criteria for determining a 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 credit risk has
increased significantly since initial recognition the Company considers reasonable and supportable
information that is available without undue cost or effort including qualitative and quantitative analyses
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 balance sheet date with the risk of default at initial recognition
either for individual financial instruments or for portfolios of financial instruments with similar credit
risk characteristics.The Company considers that the credit risk of a financial instrument has increased significantly when
one or more quantitative or qualitative criteria are triggered. The quantitative criterion mainly refers to
the probability of default over the remaining life at the reporting date increasing by more than a
specified percentage compared with that at initial recognition. The qualitative criteria include among
others significant adverse changes in the operating or financial condition of the principal debtor and
inclusion of the customer on the early-warning customer list.
(2) Definition of credit-impaired assets
In determining whether credit impairment has occurred the criteria adopted by the Company are
217 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
consistent with its internal credit risk management objectives for the relevant financial instruments
taking into account both quantitative and qualitative indicators.When assessing whether a debtor is credit-impaired the Company mainly considers the following
factors: significant financial difficulty of the issuer or debtor; a breach of contract by the debtor such as
default or delinquency in interest or principal payments; the creditor granting concessions to the debtor
for economic or contractual reasons relating to the debtor’s financial difficulty that would not otherwise
be granted; the debtor being likely to enter bankruptcy or other financial restructuring; the disappearance
of an active market for the financial asset as a result of financial difficulties of the issuer or debtor; and
the purchase or origination of a financial asset at a deep discount that reflects incurred credit losses.Credit impairment of a financial asset may be caused by the combined effect of multiple events and may
not necessarily be attributable to a separately identifiable event.
(3) Parameters for measuring expected credit losses
Depending on whether credit risk has increased significantly and whether credit impairment has
occurred the Company measures impairment allowances for different assets based on either 12-month
expected credit losses or lifetime expected credit losses. The key parameters for measuring expected
credit losses include probability of default loss given default and exposure at default. The Company
develops models for probability of default loss given default and exposure at default by taking into
account quantitative analyses of historical data such as counterparty ratings types of guarantees types
of collateral and pledges and repayment methods as well as forward-looking information.The relevant definitions are as follows:
Probability of default refers to the likelihood that a debtor will be unable to meet its payment obligations
over the next 12 months or over the remaining lifetime.Loss given default refers to the Company’s expectation of the extent of loss arising from exposure to
default. Loss given default varies depending on the type of counterparty the method and priority of
recovery and the type of collateral. It represents the percentage of exposure that is lost when default
occurs and is calculated on a 12-month or lifetime basis.Exposure at default refers to the amount to which the Company is entitled in the event of default over
the next 12 months or over the remaining lifetime. Both the assessment of significant increases in credit
risk and the calculation of expected credit losses involve forward-looking information. Through analysis
of historical data the Company identifies key economic indicators that affect the credit risk and
expected credit losses of each business type.The Company’s maximum exposure to credit risk is the book value of each financial asset presented in
the balance sheet. The Company has not provided any other guarantees that could expose it to credit risk.Among the Company’s accounts receivable accounts receivable from the top five customers accounted
for 14.82% of the Company’s total accounts receivable. Among the Company’s other receivables other
receivables from the top five companies by outstanding balance accounted for 50.15% of the Company’s
total other receivables.
218 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
2. Liquidity risk
Liquidity risk refers to the risk that an enterprise may encounter a shortage of funds in meeting
obligations that are settled by delivering cash or other financial assets. The Company centrally manages
the cash of its subsidiaries including short-term investment of surplus cash and arranging borrowings to
meet projected cash requirements. The Company’s policy is to regularly monitor its short-term and
long-term liquidity requirements and compliance with loan agreements so as to ensure that sufficient
cash reserves and readily realizable marketable securities are maintained.As of December 31 2025 the maturity profile of the Company's financial liabilities is as follows:
RMB
December 31 2025
Item Within 1 year 1-2 years 2-3 years Over 3 years
Short-term borrowings 1860677880.49
Accounts payable 2197894265.86
Other payables 822520619.38
Current portion of non-current liabilities 476613275.31
Long-term loans 1000600471.51 433378288.48 637435775.30
Bonds payable 1386717739.62
Lease liabilities 76787819.95 55353387.44 416792815.71
Long-term payables 20384008.33 8530055.57 1663702.17
Total 5357706041.04 1097772299.79 1883979471.11 1055892293.18
3. Market risk
(1) Foreign 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 mainly exposed to foreign exchange risk in relation to amounts
denominated in Hong Kong dollars and US dollars. Except for the Company’s subsidiary in Singapore
which denominates and settles transactions in US dollars RMB or Singapore dollars the Company’s
other principal operations are denominated and settled in RMB.The Company closely monitors the impact of exchange rate movements on its exposure to foreign
exchange risk. Although the Company has not currently taken any measures to hedge such risk
management monitors the exposure on an ongoing basis and will consider hedging significant foreign
exchange exposures when necessary.
(2) Interest rate risk
The Company’s interest rate risk mainly arises from long-term interest-bearing debts such as long-term
bank loans and bonds payable. Financial liabilities with floating interest rates expose the Company to
cash flow interest rate risk while financial liabilities with fixed interest rates expose the Company to fair
value interest rate risk. The Company determines the relative proportion of fixed-rate and floating-rate
contracts based on prevailing market conditions.The finance department at the Company’s headquarters continuously monitors the Group’s interest rate
levels. An increase in interest rates would increase the cost of new interest-bearing debts and the interest
expense on the Company’s outstanding floating-rate interest-bearing debts which could have a material
adverse impact on the Company’s financial performance. Management will make adjustments in a
219 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
timely manner based on the latest market conditions.XIII. Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
RMB
Closing fair value
Item Level 1 fair value Level 2 fair Level 3 fair
measurement value value Totalmeasurement measurement
Recurring fair value measurements
A. Derivative financial assets 6473245.85 6473245.85
B. Investments in other equity instruments 313077.21 313077.21
Total assets measured at fair value on a recurring basis 6473245.85 313077.21 6786323.06
C. Financial assets held for trading 7718239.77 7718239.77
1. Financial liabilities measured at fair value with
changes recognized in profit or loss 7718239.77 7718239.77
Including: Trading bonds issued
Other 7718239.77 7718239.77
Total liabilities measured at fair value on a recurring
basis 7718239.77 7718239.77
2. Basis for determining market prices for recurring and non-recurring level 1 fair value
measurements
For financial instruments traded in active markets the Company measures them based on unadjusted
quoted prices in active markets for identical assets or liabilities as at the balance sheet date.
3. Valuation techniques and qualitative and quantitative information on significant inputs used for
recurring and non-recurring level 3 fair value measurements
The Company’s investments in other equity instruments are equity investments over which the Company
has no control joint control or significant influence and for which no quoted prices are available in an
active market. The Company measures these investments based on the investment cost and reasonable
estimates made with reference to the operating conditions of the investees.
4. Others
For financial instruments traded in active markets the Company determines their fair value by reference
to quoted prices in such active markets. For financial instruments not traded in active markets the
Company determines their fair value using valuation techniques. The valuation models used mainly
include the discounted cash flow model and the comparable company model. The inputs to the valuation
techniques mainly include risk-free interest rates benchmark interest rates exchange rates credit
spreads liquidity premiums and discounts for lack of liquidity.XIV. Related Parties and Transactions
1. Information about the Company’s subsidiaries
Details of the Company’s subsidiaries are set out in Note 10 – Interests in other entities.
2. Information about the Company’s joint ventures and associates
Details of the Company’s significant joint ventures or associates are set out in Note 10-interests in other
entities.Other joint ventures or associates that entered into related party transactions with the Company during
the current period or with whom balances arose from related party transactions in prior periods.
220 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Name of joint ventures or associates Relationship
PT. Sekar Golden Harvesta Indonesia Associate
Anshan Antai Plastic Products Company[Note 1] Associate
Anshan Fengsheng Food Company[Note 1] Associate
Anshan Jiuguhe Paper Packaging Company[Note 1] Associate
Anshan Jiuguhe Food Company[Note 1] Associate
Beijing Dahong Hengfeng Animal Husbandry Technology Company Associate
Beipiao Hongfa Food Company Associate
Unphung Joint Venture Company Joint venture
Dazhou Wellhope Biotechnology Company[Note 4] Associate
Dalian Chengsan Food Group Company Associate
Dalian Wellhope Fishmeal Company Associate
Dalian Minglu Agriculture Development Company Associate
Dalian Sida Food Company Associate
Dalian Zhongyi Hefeng Trading Company Associate
Dunhua Fengda Broiler Breeding Company Associate
Golden Harvesta Inc. Philippines Associate
Fuyu Fengyuan Layer Company Associate
Fushun Fengjiu Animal Husbandry Company[Note 1] Associate
Fushun Xinhe Animal Husbandry Company[Note 1] Associate
Gongzhuling Wellhope Corn Procurement and Storage Company Associate
Harbin Weierhao Trading Company Associate
Haicheng Fengjiu Woven Bag Company Associate
Hetian Wellhope Animal Husbandry Company Associate
Hebei Guanghe Animal Health Products Trading Company Associate
Hebei Taihang Wellhope Animal Husbandry Company Associate
Hebei Taihang Wellhope Feed Company[Note 2] Associate
Huludao Jiuguhe Animal Husbandry Company[Note 1] Associate
Huludao Jiuguhe Food Company[Note 1] Associate
Huludao Jiuguhe Feed Company[Note 1] Associate
Jilin Jinfeng Animal Husbandry Company Associate
Jilin Hengfeng Animal Health Products Company Associate
Jiyuan Sunshine Rabbit Industry Technology Company Associate
Jinzhou Jiufeng Food Company[Note 1] Associate
Jinzhou Xinfeng Food Company[Note 1] Associate
Lankao Skyland Duck Industry Company Associate
Liaoning Anjiu Animal Nutrition Food Company Associate
Liaoning Mubang Livestock Equipment Manufacturing Company Associate
Liaoning Petmate Biotechnology Company Associate
Liaoning Xinjuntong Logistics Technology Company Associate
Liaoning New Yufeng Biotechnology Company Associate
Liaoning Yufeng Biotechnology Company [Note 1] Associate
Linghai Jiuguhe Feed Company [Note 1] Associate
Nepal Wellhope Agri-tech Pvt. Ltd. Joint venture
Qingdao Shenfeng Animal Husbandry Company [Note 3] Associate
Shandong Fengkang Food Company [Note 5] Associate
Shandong Herui Fengkang Food Technology Company Associate
Shenyang Wellhope Huahu Food Technology Company Associate
Shenyang Wellhope Jibaichuan Agricultural Trading Company Associate
Shenyang Fengjiu Animal Husbandry Company [Note 1] Associate
Shenyang Wanlitian Agriculture and Animal Husbandry Company Associate
Shenyang Zhongwenjie Biotechnology Company Associate
Shihaipu (Beijing) Science and Trade Company Associate
Suizhong Renhe Fishery Company Associate
221 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Tai’an Fengjiu Animal Husbandry Company [Note 1] Associate
Tai’an Huijun Biomass Energy Company Associate
Tai’an Jiuguhe Agriculture Development Company [Note 1] Associate
Wudalianchi Shengda Pasture Specialized Cooperative Associate
Xinhe Jinfeng (Shenyang) Supply Chain Management Company Associate
Indonesia Godaji International Trading Company Associate
PT. Mulia Harvest Agritech Indonesia Associate
Chongqing Dahong Agriculture and Animal Husbandry Machinery Company Associate
Chongqing Kuizhou Rabbit Industry Company Associate
Other information:
[Note 1] In April 2025 the Company acquired certain equity interests in certain broiler integration
companies including Anshan Jiuguhe Food Company Anshan Fengsheng Food Company Tai’an
Jiuguhe Agriculture Development Company Tai’an Fengjiu Animal Husbandry Company Huludao
Jiuguhe Food Company Huludao Jiuguhe Feed Company Huludao Jiuguhe Animal Husbandry
Company Jinzhou Jiufeng Food Company Jinzhou Xinfeng Food Company Linghai Jiuguhe Feed
Company Liaoning Yufeng Biotechnology Company Anshan Jiuguhe Paper Packaging Company and
Anshan Antai Plastic Products Company. These companies changed from associates to subsidiaries
included in the scope of consolidation.[Note 2] In May 2025 the Company acquired certain equity interests in Hebei Taihang Wellhope Feed
Company which changed from an associate to a subsidiary included in the scope of consolidation.[Note 3] In November 2025 the Company acquired certain equity interests in Qingdao Shenfeng Animal
Husbandry Company which changed from an associate to a subsidiary included in the scope of
consolidation.[Note 4] In September 2024 the Company acquired certain equity interests in Dazhou Wellhope
Biotechnology Company which changed from an associate to a subsidiary included in the scope of
consolidation.[Note 5] In November 2024 the Company acquired certain equity interests in Shandong Fengkang Food
Company which changed from an associate to a subsidiary included in the scope of consolidation.
3. Other related parties information
Related party Relationship
Controlling shareholder natural person shareholders who hold 5%
Related natural persons or more of the shares of the Company directors senior
management and their relatives
Changzhou Heli Venture Capital
Partnership (Limited Partnership) Shareholder of the Company holds more than 5% shares
4. Related party transactions
(1) Related party transactions involving the purchase and sale of goods and the provision and
receipt of services
Details of purchases of goods and receipt of services
RMB
Related party Transaction 2025 2024
Anshan Antai Plastic Products Company Others 10329.02 747330.60
Anshan Fengsheng Food Company Feed ingredients 178848.79 2747502.34
222 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Anshan Jiuguhe Paper Packaging Company Others 338491.37 3185811.81
Anshan Jiuguhe Food Company Broiler products 58954.13 10797153.93
Beipiao Hongfa Food Company Broiler products 18481202.63 11305158.67
Dazhou Wellhope Biotechnology Company Feed products 4948436.44
Dalian Chengsan Food Group Company Live broilers 95061540.89 152794701.21
Dalian Wellhope Fishmeal Company Feed ingredients 45134644.15 67875835.50
Dalian Zhongyi Hefeng Trading Company Feed ingredients 21411016.06
Dunhua Fengda Broiler Breeding Company Chicks 2281796.50
Gongzhuling Wellhope Corn Procurement and
Storage Company Feed ingredients 6836434.43 13056253.87
Harbin Weierhao Trading Company Feed ingredients 15779723.44 18671525.19
Haicheng Fengjiu Weaving Bag Company Others 24618760.46
Hebei Guanghe Animal Health Products Trading
Company Feed ingredients 58232.76
Hebei Taihang Wellhope Animal Husbandry
Company Live broilers 206935961.36 201097277.52
Huludao Jiuguhe Animal Husbandry Company Live broilers 5059496.80 41159188.40
Huludao Jiuguhe Food Company Broiler Products 160091.74 426646.84
Jilin Jinfeng Animal Husbandry Company Breeding pigs 911062.00
Jilin Hengfeng Animal Health Products Company Veterinary drugs andvaccines 94837.60 197400.00
Jinzhou Jiufeng Food Company Broiler products 4035779.38 18432250.73
Jinzhou Xinfeng Food Company Broiler products 27412.84
Liaoning Mubang Livestock Equipment
Manufacturing Company Others 1356894.69 635600.00
Liaoning Xinjuntong Logistics Technology
Company Others 1491062.75
Liaoning New Yufeng Biotechnology Company Feed ingredients 536453.54
Liaoning Yufeng Biotechnology Company Feed ingredients 6581993.35 56469023.33
Linghai Jiuguhe Feed Company Feed products livebroilers 724376.08
Shandong Fengkang Food Company Broiler products 6049339.11
Shenyang Wanlitian Agriculture and Animal Veterinary drugs and
Husbandry Company vaccines 19402857.27 7217770.00
Shenyang Zhongwenjie Biotechnology Company Veterinary drugs andvaccines 152336498.95 62603004.19
Shihaipu (Beijing) Science and Trade Company Others 497119.71 980933.58
Suizhong Renhe Fishery Company Feed ingredients 26445532.30 12824731.10
Tai’an Fengjiu Animal Husbandry Company Chicks 8284243.24 37533159.08
Tai’an Jiuguhe Agriculture Development Company Feed products livebroilers 7644236.37 32524555.34
Xinhe Jinfeng (Shenyang) Supply Chain
Management Company Feed ingredients 4283694.64
Chongqing Dahong Agriculture and Animal
Husbandry Machinery Company Others 56643.54
Liaoning Petmate Biotechnology Company Others 1328190.00
Total / 674527178.20 768197823.36
Details of sales of goods and provision of services
RMB
Related party Transaction 2025 2024
PT. Sekar Golden Harvesta Indonesia Feed ingredients 544660.61 1210503.36
Anshan Fengsheng Food Company Live broilers 172653.51 2082589.11
Anshan Jiuguhe Food Company Live broilers 10550860.27
Beipiao Hongfa Food Company Feed ingredients 29484967.50 29944358.23
223 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Dazhou Wellhope Biotechnology Company Feed ingredients feedproducts 17203634.96
Dalian Chengsan Food Group Company Feed ingredientsveterinary drugs 69381814.48 39828818.38
Dalian Wellhope Fishmeal Company Feed ingredients 20100794.78 265486.72
Dalian Minglu Agriculture Development
Company Broiler products 3190.33
Dalian Sida Food Company Live broilers 6906955.21 189452312.92
Dalian Zhongyi Hefeng Trading Company Feed ingredients 2345160.70
Dunhua Fengda Broiler Breeding Company Feed products 122660.55 378811.47
Golden Harvesta Inc. Philippines Feed ingredients 3771150.05
Fuyu Fengyuan Layer Company Pullets feed products 25104430.12 4034088.47
Fushun Fengjiu Animal Husbandry Company Feed products 3681373.50
Fushun Xinhe Animal Husbandry Company Feed products 9888118.00
Harbin Weierhao Trading Company Feed ingredients 100385763.05 72337773.19
Hetian Wellhope Animal Husbandry Company Feed ingredients 542585.67
Hebei Guanghe Animal Health Products Trading
Company Feed ingredients 3003464.61
Hebei Taihang Wellhope Animal Husbandry
Company Feed products 16439645.94
Hebei Taihang Wellhope Feed Company Feed ingredients 6507036.74
Huludao Jiuguhe Animal Husbandry Company Feed products 9978.76 906116.80
Huludao Jiuguhe Food Company Broiler products 878924.26 3315876.77
Huludao Jiuguhe Feed Company Feed ingredients feedproducts 14651756.23 57420833.27
Jilin Jinfeng Animal Husbandry Company Piglets feed products 258399848.46 122067879.00
Jilin Hengfeng Animal Health Products
Company Feed ingredients 884.96
Jiyuan Sunshine Rabbit Industry Technology
Company Other products 19482283.82 256079.61
Jinzhou Jiufeng Food Company Other products 14753.99
Lankao Skyland Duck Industry Company Other products 229396.46 13805.31
Liaoning Anjiu Animal Nutrition Food Company Feed ingredients 6985394.79
Liaoning Mubang Livestock Equipment
Manufacturing Company Other products 288676.22
Liaoning Petmate Biotechnology Company Other products 115619.45 150098.37
Liaoning Xinjuntong Logistics Technology
Company Other products 17954.49
Liaoning New Yufeng Biotechnology Company Feed ingredients 22293128.92
Liaoning Yufeng Biotechnology Company Broiler products feedingredients 4560746.71 35491651.90
Linghai Jiuguhe Feed Company Feed ingredients feedproducts 14699937.21 56204142.63
Nepal Wellhope Agri-tech Pvt. Ltd. Feed products 6843356.64 6420472.15
Qingdao Shenfeng Animal Husbandry Company Feed ingredients feedproducts 27144361.97 14310315.16
Shandong Fengkang Food Company Live broilers 612196573.91
Shandong Herui Fengkang Food Technology
Company Broiler products 554424.79
Shenyang Wellhope Jibaichuan Agricultural
Trading Company Feed products 3574531.95
Shenyang Fengjiu Animal Husbandry Company Feed products 726039.65
Shenyang Wanlitian Agriculture and Animal
Husbandry Company Feed ingredients 457074.03 12355408.75
224 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Shihaipu (Beijing) Science and Trade Company Other products 960191.86 1013732.37
Suizhong Renhe Fishery Company Feed ingredients 54867.26
Tai’an Fengjiu Animal Husbandry Company Other products 2388798.61 7087799.36
Tai’an Huijun Biomass Energy Company Feed ingredients 46728.41
Tai’an Jiuguhe Agriculture Development Feed ingredients feed
Company products 28346082.17 125126068.14
Wudalianchi Shengda Pasture Specialized
Cooperative Feed products 799767.97 8411628.70
Indonesia Godaji International Trading Company Feed ingredients 3613151.13 484553.66
PT. Mulia Harvest Agritech Indonesia Feed ingredients 6211535.45 3759473.04
Chongqing Dahong Agriculture and Animal
Husbandry Machinery Company Broiler products 9366.37
Chongqing Kuizhou Rabbit Industry Company Feed products 204966.37
Total / 722950954.71 1434281745.98
Description of related party transactions involving purchases and sales of goods and the provision and
receipt of services
Note 1: The Company’s related party transactions were conducted for its normal business needs.Purchase and sale prices were determined using the comparable uncontrolled price method with
reference to the market prices of similar products.Note 2: The amounts of related party transactions with Beipiao Hongfa Food Company Hebei Taihang
Wellhope Animal Husbandry Company Shenyang Zhongwenjie Biotechnology Company Jiyuan
Sunshine Rabbit Industry Technology Company Dalian Wellhope Fishmeal Company and Dalian
Chengsan Food Group Company include the amounts attributable to their respective subsidiaries.
(2) Related party guarantees
The Company acted as the guarantor
RMB
Amount of Guarantee
Whether the
Guaranteed party guarantee commencement
Guarantee guarantee has
date expiry date been fullyperformed
Lingyuan Wellhope Animal Husbandry 40000000.00 September 24 DecemberCompany 2025 11 2029 No
Lixin Xiangfeng Agriculture and Animal 25000000.00 November 14 NovemberHusbandry Company 2025 13 2029 No
Lixin Xiangfeng Agriculture and Animal March 14 March 14
Husbandry Company 10000000.00 2025 2029 No
Tai’an Fengjiu Animal Husbandry Company 30000000.00 July 18 2025 July 182029 No
Hebei Taihang Wellhope Food Company 146000000.00 May 31 2023 April 262036 No
Tai’an Jiuguhe Agriculture Development June 30
Company 96000000.00 June 30 2025 2038 No
Anshan Jiuguhe Food Company 148500000.00 March 13 March 122025 2029 No
Anshan Jiuguhe Food Company 132000000.00 September 15 September2025 14 2029 No
Anshan Jiuguhe Food Company 30000000.00 January 22 January 212025 2029 No
Anshan Jiuguhe Food Company 100000000.00 October 21 December2025 17 2029 No
225 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Anshan Jiuguhe Food Company 30000000.00 December 25 December2025 25 2029 No
Anshan Jiuguhe Food Company 100000000.00 September 2 December2025 17 2029 No
Anshan Fengsheng Food Company 150000000.00 January 13 January 122023 2035 No
Liaoning Yufeng Biotechnology Company 120000000.00 October 31 October 302023 2037 No
Hebei Taihang Wellhope Feed Company 60000000.00 April 22 2025 April 222036 No
Tai’an Jiuguhe Agriculture Development
Company Anshan Jiuguhe Food Company
Anshan Fengsheng Food Company Huludao 500000000.00 April 10 2025 June 12 No
Jiuguhe Food Company Jinzhou Xinfeng Food 2026
Company
Jinzhou Xinfeng Food Company 150000000.00 November 6 December2023 13 2033 No
Liaoning Expert Trading Company 300000000.00 September 23 June 132025 2029 No
Liaoning Expert Trading Company 252000000.00 February 25 February 242025 2029 No
Liaoning Expert Trading Company 300000000.00 December 9 November2025 12 2029 No
Baicheng Wellhope Animal Husbandry September 15 September
Company 10000000.00 2025 25 2029 No
Baicheng Wellhope Animal Husbandry
Company 10000000.00 June 4 2025 June 8 2029 No
Shenyang Huakang Xinxin Food Company 60000000.00 November 13 December2025 30 2029 No
Linghai Jiuguhe Feed Company 15000000.00 September 25 September2025 25 2029 No
Linghai Jiuguhe Feed Company 15000000.00 September 11 September2025 10 2033 No
Jinzhou Jiufeng Food Company 43700000.00 September 26 September2025 25 2029 No
Jinzhou Jiufeng Food Company 85000000.00 October 27 October 262025 2033 No
Daqing Wellhope Food Company 7300000.00 September 15 September2025 11 2026 No
Daqing Wellhope Food Company 21920000.00 July 27 2022 July 262027 No
Daqing Wellhope Food Company 17900000.00 April 22 2023 April 212027 No
Haicheng Wellhope Animal Husbandry Feed 51000000.00 November 20 October 25Company 2023 2036 No
Liaoning Qingyuan Wellhope Agriculture and
Animal Husbandry Company 40800000.00
August 15 August 14
2023 2027 No
Daqing Wellhope Animal Husbandry Company 10000000.00 December 5 December 42025 2029 No
Hainan Wellhope Animal Husbandry Company 10000000.00 December 8 November2025 28 2029 No
Anhui Wellhope Food Company 100000000.00 March 6 2021 March 52029 No
Shandong Fengkang Food Company Dalian June 30
Zhongjia Food Company 64471548.64 June 11 2024 2031 No
226 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Shandong Heyuan Food Company Dalian
Zhongjia Food Company 30366229.40 June 7 2024
June 30
2032 No
Tai’an Fengjiu Animal Husbandry Company 11201700.00 August 8 2023 July 182029 No
Liaoning Expert Trading Company 500000000.00 November 18 November2025 17 2026 No
(3) Fund lending and borrowing with related parties
RMB
Amount of
Related party funds Commencement Maturity Note
borrowed date date
Funds borrowed
Liaoning Mubang Livestock Equipment Manufacturing
Company 16200000.00
Related party Amount of Commencement Maturityfunds lent date date Note
Funds lent
Liaoning Mubang Livestock Equipment Manufacturing
Company 13761000.00
Tai’an Huijun Biomass Energy Company 82463346.00
(4) Key management compensation
RMB10000
Item 2025 2024
Key management compensation 475.00 851.30
(5) Other related party transactions
RMB
Related party Contents 2025 2024
Tai’an Huijun Biomass Energy Company Interest income 840549.07
Golden Harvesta Inc. Philippines Interest income 763830.19
Liaoning Mubang Livestock Equipment Manufacturing
Company Interest expense 300889.48
5. Outstanding balances of receivables from and payables to related parties
(1) Receivables
RMB
Closing balance Opening balance
Item Related party Book balance Bad debt Bad debtprovision Book balance provision
Accounts
receivable PT. Sekar Golden Harvesta Indonesia 145041.00 2900.82
Accounts
receivable Anshan Jiuguhe Food Company 20000000.00 400000.00
Accounts
receivable Beipiao Hongfa Food Company 462044.79 9240.90 181141.50 3622.83
Accounts
receivable Dalian Chengsan Food Group Company 1296950.00 46211.00 1722190.25 37979.81
Accounts
receivable Golden Harvesta Inc. Philippines 216040.00 21604.00
Accounts
receivable Fuyu Fengyuan Layer Company 7577085.62 151541.71 2993340.97 59866.82
Accounts Hetian Wellhope Animal Husbandry 256575.00 7531.50
227 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
receivable Company
Accounts
receivable Huludao Jiuguhe Feed Company 14071620.00 287221.30
Accounts Jilin Jinfeng Animal Husbandry
receivable Company 49147441.06 983244.82 11866680.00 245332.80
Accounts Lankao Skyland Duck Industry
receivable Company 34240.00 3424.00
Accounts Liaoning Anjiu Animal Nutrition Food
receivable Company 2026756.15 202675.62
Accounts Liaoning New Yufeng Biotechnology
receivable Company 10804584.69 222351.49
Accounts Liaoning Yufeng Biotechnology
receivable Company 4265242.55 85304.85
Accounts
receivable Linghai Jiuguhe Feed Company 16558276.00 982549.24
Accounts
receivable Nepal Wellhope Agri-tech Pvt. Ltd. 66963.40 6696.34 1982680.13 39653.60
Accounts Qingdao Shenfeng Animal Husbandry
receivable Company 5400.00 540.00
Accounts Shandong Herui Fengkang Food
receivable Technology Company 626500.00 12530.00
Accounts Shenyang Wellhope Jibaichuan
receivable Agricultural Trading Company 630885.85 19988.25
Accounts Tai’an Fengjiu Animal Husbandry
receivable Company 29400.00 588.00
Accounts Tai’an Jiuguhe Agricultural
receivable Development Company 26900000.00 538000.00
Accounts Wudalianchi Shengda Pasture
receivable Specialized Cooperative 15942581.40 15942581.40 15877651.40 14790863.74
Prepayments Dalian Wellhope Fishmeal Company 2986600.00 1926759.00
Prepayments Dalian Chengsan Food Group Company 8990.00
Prepayments Liaoning New Yufeng BiotechnologyCompany 2747808.00
Prepayments Shenyang Zhongwenjie BiotechnologyCompany 42040.00
Prepayments Liaoning Yufeng BiotechnologyCompany 221508.00
Prepayments Suizhong Renhe Fishery Company 6700000.00
Other Jilin Jinfeng Animal Husbandry
receivables Company 9000000.00 900000.00
Other Lankao Skyland Duck Industry
receivables Company 30000.00 3000.00
Other Liaoning Mubang Livestock Equipment
receivables Manufacturing Company 13761000.00 1714150.00
Other Liaoning New Yufeng Biotechnology
receivables Company 59096.88 1181.94
Other Tai’an Huijun Biomass Energy
receivables Company 82463346.00 40347846.00
Other Wudalianchi Shengda Pasture
receivables Specialized Cooperative 4350000.00 4350000.00
(2) Payables
RMB
Item Related party Closing book Opening bookbalance balance
228 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Accounts payable Anshan Antai Plastic Products Company 134527.97
Accounts payable Anshan Jiuguhe Paper Packaging Company 314510.87
Accounts payable Anshan Jiuguhe Food Company 3000000.00
Accounts payable Beipiao Hongfa Food Company 375247.71
Accounts payable Dalian Chengsan Food Group Company 1268065.56 1573344.50
Accounts payable Dalian Wellhope Fishmeal Company 818950.50
Accounts payable Harbin Weierhao Trading Company 121448.00 102220.00
Accounts payable Haicheng Fengjiu Woven Bag Company 7299149.89
Accounts payable Hebei Taihang Wellhope Animal Husbandry Company 2705960.48
Accounts payable Huludao Jiuguhe Animal Husbandry Company 261721.60
Accounts payable Jilin Hengfeng Animal Health Products Company 10400.00 10400.00
Accounts payable Jinzhou Jiufeng Food Company 3000000.00
Accounts payable Liaoning Mubang Livestock Equipment ManufacturingCompany 4650.00 584659.26
Accounts payable Liaoning Xinjuntong Logistics Technology Company 629084.58
Accounts payable Liaoning Yufeng Biotechnology Company 22347.00
Accounts payable Qingdao Shenfeng Animal Husbandry Company 1200000.00
Accounts payable Shenyang Wanlitian Agriculture and Animal HusbandryCompany 1403750.00 2205120.00
Accounts payable Shenyang Zhongwenjie Biotechnology Company 115459243.35 29497670.90
Accounts payable Shihaipu (Beijing) Science and Trade Company 17600.00
Accounts payable Suizhong Renhe Fishery Company 5300.00 5300.00
Accounts payable Tai’an Fengjiu Animal Husbandry Company 1773102.85
Accounts payable Tai’an Huijun Biomass Energy Company 233000.00
Accounts payable Tai’an Jiuguhe Agricultural Development Company 3932445.00
Accounts payable Xinhe Jinfeng (Shenyang) Supply Chain ManagementCompany 189590.10
Contract liabilities Dalian Chengsan Food Group Company 0.91
Contract liabilities Harbin Weierhao Trading Company 3689926.81 1481023.88
Contract liabilities Huludao Jiuguhe Feed Company 399300.00
Contract liabilities Jilin Jinfeng Animal Husbandry Company 11315422.86
Contract liabilities Liaoning Anjiu Animal Nutrition Food Company 91806.83
Contract liabilities Liaoning Xinjuntong Logistics Technology Company 38226.30
Contract liabilities Liaoning New Yufeng Biotechnology Company 43220.02
Contract liabilities Liaoning Yufeng Biotechnology Company 6.50
Contract liabilities Linghai Jiuguhe Feed Company 141250.00
Contract liabilities Nepal Wellhope Agri-tech Pvt. Ltd. 38700.00 38700.00
Contract liabilities Shenyang Wellhope Huahu Food Technology Company 15947.96
Contract liabilities Shenyang Wellhope Jibaichuan Agricultural TradingCompany 172230.50
Contract liabilities Golden Harvesta Inc. Philippines 1356558.40
Contract liabilities Hebei Taihang Wellhope Animal Husbandry Company 7922.20
Other payables Beijing Dahong Hengfeng Animal HusbandryTechnology Company 9960.00 9960.00
Other payables Unphung Joint Venture Company 71682.43 71682.43
Other payables Dalian Chengsan Food Group Company 100000.00
Other payables Hebei Taihang Wellhope Animal Husbandry Company 17647.05
Other payables Liaoning Mubang Livestock Equipment ManufacturingCompany 18518416.50 118732.00
Other payables Liaoning Xinjuntong Logistics Technology Company 45024.07
Other payables Nepal Wellhope Agri-tech Pvt. Ltd. 2999.41 2999.41
Other payables Shenyang Wellhope Jibaichuan Agricultural TradingCompany 36000.00
Other payables Xinhe Jinfeng (Shenyang) Supply Chain Management 168363.40
229 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company
Other payables Chongqing Dahong Agriculture and Animal HusbandryMachinery Company 44490.00 28906.80
XV. Share-based payment
1. Equity instruments
(1) Details
Lapsed during the period
Category of grantees Quantity
(Shares) Amount(RMB)
Directors (excluding independent directors) senior management middle
management and core technical and business personnel 4200000.00 21630000.00
Total 4200000.00 21630000.00
(2) Outstanding stock options or other equity instruments at the end of the period
Outstanding other equity
Category of grantees instruments at the period
end
Directors (excluding independent directors) senior management middle Exercise Remaining
management and core technical and business personnel price contractualterm
RMB
Total 5.15 per 20 months
share
2.Equity-settled share-based payment
RMB
Method for determining the fair value of equity
instruments at the grant date Closing price on the grant date
Significant inputs used in determining the fair Closing price on the grant date and the grant price
value of equity instruments at the grant date under the incentive plan
Basis for determining the number exercisable The exercise conditions are expected to be satisfied
equity instruments and all grantees are expected to be able to exercisetheir rights
Reason for any significant difference between
current-period estimates and prior-period None
estimates
Cumulative amount of equity-settled
share-based payments recognized in capital 3306254.04
reserve
3.Share-based payment expenses
RMB
Category of grantees Equity-settled share-basedpayment expenses
Directors (excluding independent directors) senior management middle
management and core technical and business personnel 1573617.48
Total 1573617.48
XVI. Commitments and Contingencies
1. Significant commitments
Major external commitments existing at the balance sheet date including their nature and amounts
230 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
As at December 31 2025 the Company had no significant commitments required to be disclosed.
2. Contingencies
Significant contingencies existing at the balance sheet date
As at December 31 2025 the Company provided joint and several liability guarantees for debts incurred
by its subsidiaries including Dalian Heyuan Animal Husbandry Company Beijing Sanyuan Wellhope
Animal Husbandry Company and other subsidiaries in connection with their purchases of feed
ingredients from suppliers including Jiusan Group Changchun Soybean Technology Company and Yihai
Kerry (Shanghai) International Trading Company. The aggregate maximum amount of claims secured by
the guarantees was RMB 1705.2085 million.In April 2025 the Company acquired partial equity interests in several associated companies including
Anshan Jiuguhe Food Company and other companies. Prior to the acquisition the target companies had
provided guarantees for bank borrowings of Tai’an Huijun Biomass Energy Company Liaoning Mubang
Livestock Equipment Manufacturing Company and individual farmers. As at December 31 2025 the
outstanding balance of guarantees provided by the Company for associated companies and individual
farmers was RMB 179.9877 million.XVII. Events After the Balance Sheet Date
Not applicable
XVIII. Notes to Major Items of the Parent Company's Financial Statements
1. Accounts receivable
(1) Classified by aging
RMB
Aging Closing book balance Opening book balance
Within 1 year 30546607.20 61335910.08
1-2 years 2581437.50 6594477.00
2-3 years 1095853.00 450962.50
Over 3 years 9291092.53 18690222.87
Total 43514990.23 87071572.45
231 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(2) Classified by the method of bad debt provision
RMB
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Amount Percentage% Amount Provision Book value Amount Percentage% Amount Provision Book valuerate % rate %
Provision for bad debts
on an individual basis 686300.00 1.58 686300.00 100.00 686300.00 0.79 686300.00 100.00
Provision for bad debts
on a collective basis 42828690.23 98.42 9760832.40 22.79 33067857.83 86385272.45 99.21 20471984.41 23.70 65913288.04
Including:
Aging portfolio 17216690.23 39.56 9760832.40 56.69 7455857.83 85643499.12 98.36 20471984.41 23.90 65171514.71
Other portfolios 25612000.00 58.86 25612000.00 741773.33 0.85 741773.33
Total 43514990.23 / 10447132.40 / 33067857.83 87071572.45 / 21158284.41 / 65913288.04
232 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Provision for bad debts on an individual basis:
RMB
Name Closing balanceBook balance Bad debt provision Provision rate % Reason
Customer 1 312000.00 312000.00 100.00 Uncollectible
Customer 2 200000.00 200000.00 100.00 Uncollectible
Customer 3 174300.00 174300.00 100.00 Uncollectible
Total 686300.00 686300.00 100.00 /
Provision for bad debts on a collective basis: Aging portfolio
RMB
Aging Closing balanceAccounts receivable Bad debt provision Provision rate %
Within 1 year 30546607.20 220897.74 0.72
1 -2 years 2581437.50 387215.63 15.00
2-3 years 1095853.00 547926.50 50.00
Over 3 years 8604792.53 8604792.53 100.00
Total 42828690.23 9760832.40 22.79
(3) Bad debt provision
RMB
Category Opening balance Changes in current periodProvision Write-off Closing balance
Provision for
bad debts on an 686300.00 686300.00
individual basis
Provision for
bad debts on a 20471984.41 -1985924.17 8725227.84 9760832.40
collective basis
Total 21158284.41 -1985924.17 8725227.84 10447132.40
(4) Accounts receivable written off in the current period
RMB
Item Amount
Accounts receivable actually written off 8725227.84
(5) Top 5 accounts receivable and contract assets by closing balance grouped by debtor
RMB
As a percentage of total
Name Closing balance of
Closing balance of
accounts receivable accounts receivable
closing balance of Closing balance of
and contract assets accounts receivable and bad debt provisioncontract assets(%)
110588680.0010588680.0024.33
26641120.006641120.0015.26
35770200.005770200.0013.26
45386131.505386131.5012.384468669.75
52789312.502789312.506.412675897.50
Total 31175444.00 31175444.00 71.64 7144567.25
2. Other receivables
RMB
Item Closing balance Opening balance
Dividends receivable 16541119.77 19052119.77
Other receivables 2732181551.00 2216033371.63
Total 2748722670.77 2235085491.40
233 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
A. Dividends receivable
(1) Dividends receivable
RMB
Item Closing balance Opening balance
Dividend income from long-term equity investments accounted
for using the cost method 16541119.77 19052119.77
Total 16541119.77 19052119.77
(2) Significant dividends receivable aged over one year
RMB
Whether
impairment
Item(investee) Closing Aging Reasons for has occurredbalance non-recovery and the basis
for its
determination
Daqing Wellhope
Bayi Agricultural 2-3 years:
Science and 16541119.77 RMB 10428632.53;
Technology Over 3 years:
Not paid No
Company RMB 6112487.24
Total 16541119.77 / /
B. Other receivables
(1) Classified by aging
RMB
Aging Closing book balance Opening book balance
Within 1 year 2732995799.29 2187598080.47
1-2 years 158000.00 33463143.00
2-3 years 9526.00
Over 3 years 457900.00 4807900.00
Total 2733621225.29 2225869123.47
(2) Classified by nature
RMB
Nature Closing book balance Opening book balance
General operating receivables 2724193325.29 2187736223.47
Deposits and margins 427900.00 382900.00
Receivables from disposal of investments 9000000.00 33400000.00
Other current loans 4350000.00
Total 2733621225.29 2225869123.47
(3) Bad debt provision
RMB
Stage 1 Stage 2 Stage 3
Bad debt provision 12-month Lifetime expected credit Lifetime expected Total
expected loss (not credit loss
credit loss credit-impaired) (credit-impaired)
Balance on January
120255027851.844807900.009835751.84
-Transfer to stage 2
- Transfer to stage 3 -58000.00 58000.00
234 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
-Transfer back to
stage 2
- Transfer back to
stage 1
Provision made
during the reporting -3992460.55 64462408.62 60469948.07
period
Reversal during the
reporting period 4350000.00 4350000.00
Charged off during
the reporting period
Amount written off
during the period 53617.00 64462408.62 64516025.62
Balance on
December 31 2025 923774.29 515900.00 1439674.29
Basis for stage classification and bad debt provision rates
a. As of December 31 2025 the provision for bad debts was measured based on the three-stage model
as follows:
RMB
Stage Book balance Provision for bad debts Book value
Stage 1 2733105325.29 923774.29 2732181551.00
Stage 2
Stage 3 515900.00 515900.00
Total 2733621225.29 1439674.29 2732181551.00
b. As of December 31 2024 the provision for bad debts was measured based on the three-stage model
as follows:
RMB
Stage Book balance Provision for bad debts Book value
Stage 1 2221061223.47 5027851.84 2216033371.63
Stage 2
Stage 3 4807900.00 4807900.00
Total 2225869123.47 9835751.84 2216033371.63
(4) Bad debt provision
RMB
Category Opening Changes in the current period Closingbalance Provision Reversal Write-off balance
Other receivables 9835751.84 60469948.07 4350000.00 64516025.62 1439674.29
Total 9835751.84 60469948.07 4350000.00 64516025.62 1439674.29
(5) Write-off of other receivables during the period
RMB
Item Amount
Other receivables written off 64516025.62
235 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(6) Top 5 other receivables by closing balance grouped by debtor
RMB
As a percentage of Closing
Company Closing balance closing balance of Nature Aging balance ofother receivables % bad debt
provision
Dalian Heyuan Animal General
Husbandry Company 464327508.37 16.99 operating
Within
receivables 1 year
Fushun Wellhope General
Agriculture and Animal 286536655.79 10.48 operating Within
Husbandry Company receivables 1 year
Liaoning Wellhope
Agriculture and Animal General
Husbandry 137147323.25 5.02 operating
Within
Development Company receivables
1 year
Fuxin Wellhope General
Agriculture and Animal 125648538.70 4.60 operating Within
Husbandry Company receivables 1 year
Anhui Wellhope General
Animal Husbandry 125375738.17 4.59 operating Within
Company receivables 1 year
Total 1139035764.28 41.68 / /
3. Long-term equity investment
RMB
Closing balance Opening balance
Item
Book balance Impairmentprovision Book value Book balance
Impairment
provision Book value
Investment in
subsidiaries 5536744258.81 5536744258.81 4167552015.38 4167552015.38
Investment in
associates and 1871594556.11 17900000.00 1853694556.11 2335353767.06 17900000.00 2317453767.06
joint ventures
Total 7408338814.92 17900000.00 7390438814.92 6502905782.44 17900000.00 6485005782.44
(1) Investment in subsidiaries
RMB
Investee Opening balance
Changes in 2025 Closing balance
(book value) Additional Disposals / (book value)
investment Reductions
Zhejiang Pinghu Wellhope Animal Husbandry Company 1026750.75 1026750.75
Changsha Wellhope Animal Husbandry Company 8300703.61 620.83 8301324.44
Tangshan Wellhope Feed Company 47113384.31 3560458.16 50673842.47
Shulan Wellhope Animal Husbandry Company 63395948.38 1241.67 63397190.05
Daqing Wellhope Food Company 7651407.22 1241.67 7652648.89
Harbin Wellhope Agriculture and Animal Husbandry
Development Company 1407.22 1241.67 2648.89
Nanchang Wellhope Animal Husbandry Company 6501407.22 1241.67 6502648.89
Haicheng Wellhope Animal Husbandry Feed Company 12616197.07 1241.67 12617438.74
Fuyu Wellhope Taolaizhao Poultry Breeding Company 25758958.82 1241.67 25760200.49
Jiyuan Helai Feed Company 23002110.83 -2110.83 23000000.00
Wan’an Wellhope Feed Company 7802110.83 1862.50 7803973.33
Lixin Xiangfeng Agriculture and Animal Husbandry
Company 2110.83 1862.50 3973.33
Lixin Rongfeng Agriculture and Animal Husbandry
Company 2110.83 1862.50 3973.33
236 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Dalian Wellhope Pig Breeding Company 2110.83 8741.33 10852.16
Datong Hejia Agriculture and Animal Husbandry Company 2110.83 13000000.00 13002110.83
Shenyang Wellhope Poultry Company 63380.06 2483.34 65863.40
Shanxi Wellhope Animal Husbandry Company 48044897.95 2483.34 48047381.29
Shenyang Expert Trading Company 8213462.72 2483.34 8215946.06
Heilongjiang Sanjiang Wellhope Animal Husbandry
Company 13025225.20 2483.34 13027708.54
Heilongjiang Wellhope Dasenlin Food Company 10202814.44 2483.34 10205297.78
Shenyang Jiahe Tianfeng Trading Company 10146428.74 2483.34 10148912.08
Gansu Wellhope Animal Husbandry Company 40111505.20 2483.34 40113988.54
Daqing Wellhope Animal Husbandry Company 2814.44 5118376.67 5121191.11
Fuzhou Wellhope Xingyuan Animal Husbandry
Development Company 72803518.06 3104.16 72806622.22
Baotou Wellhope Animal Husbandry Company 15753518.06 42538168.99 58291687.05
Cangzhou Helai Technology Company 3535132.52 3104.16 3538236.68
Zhengzhou Wellhope Animal Husbandry Company 12901523.88 3104.16 12904628.04
Dunhua Fengda Agriculture and Animal Husbandry
Development Company 13099316.30 3725.00 13103041.30
Jinan Xinweita Science and Trade Company 161979.65 3725.00 165704.65
Shenyang Wellhope Extruded Feed Company 33046305.18 3725.00 33050030.18
Hengshui Wellhope Feed Company 6404221.67 9603725.00 16007946.67
Baicheng Wellhope Animal Husbandry Company 5104221.67 3725.00 5107946.67
Guangzhou Dashang Trading Company 4221.67 3725.00 7946.67
Shenyang Pufeng Trading Company 7504010.39 3725.00 7507735.39
Anyang Wellhope Agriculture and Animal Husbandry
Company 55004221.67 3725.00 55007946.67
Jinzhou Wellhope Animal Husbandry Company 17265139.45 3725.00 17268864.45
Tianjin Weierhao Trading Company 4221.66 3725.00 7946.66
Yunnan Wellhope Feed Company 25587420.05 4345.83 25591765.88
Haicheng Xinzhongxin Feed Company 6007240.98 4345.83 6011586.81
Shijiazhuang Hejia Agriculture and Animal Husbandry
Company 13005488.17 869.16 13006357.33
Jingzhou Wellhope Agricultural Technology Company 43306461.47 4966.67 43311428.14
Jilin Wellhope Swine Breeding Company 15005628.89 -331.11 15005297.78
Huai’an Wellhope Feed Company 30236333.51 4966.67 30241300.18
Zhumadian Wellhope Animal Husbandry Company 9058584.93 7615.55 9066200.48
Jiaozuo Wellhope Feed Company 50710937.42 9560.83 50720498.25
Hainan Expert Trading Company 15625.03 5711.67 21336.70
Anhui Wellhope Food Company 6895.39 6084.17 12979.56
Tangshan Hejia Agriculture and Animal Husbandry
Company 19641562.63 19641562.63
Hainan Wellhope Animal Husbandry Company 68162768.45 6208.33 68168976.78
Tangshan Wellhope Technology Company 21040702.92 6208.33 21046911.25
Changchun Wellhope Food Company 8675370.15 6208.33 8681578.48
Qingdao Wellhope Animal Husbandry Company 28894204.41 6208.33 28900412.74
Kaifeng Wellhope Agriculture and Animal Husbandry
Technology Company 47384.32 6208.33 53592.65
Dehui Wellhope Animal Husbandry Company 52460.32 6208.33 58668.65
Puyang Wellhope Animal Husbandry Company 52460.32 6208.33 58668.65
Shandong Heyuan Animal Husbandry Company 7036.11 6208.33 13244.44
Lingyuan Wellhope Animal Husbandry Company 16918854.50 7003.00 16925857.50
Puyang Wellhope Food Company 20218720.17 7325.83 20226046.00
Chifeng Wellhope Animal Husbandry Company 6808443.33 12443131.00 19251574.33
Dunhua Wellhope Zhongda Animal Husbandry Company 7661238.30 -8443.33 7652794.97
Liaoning Wellhope Procurement and Trading Company 30286787.81 7450.00 30294237.81
Liaoning Wellhope Egg Industry Company 8443.33 7450.00 15893.33
Beijing Wellhope Animal Husbandry Technology Company 5080845.66 7822.50 5088668.16
Luoyang Wellhope Agriculture and Animal Husbandry 75008865.50 7822.50 75016688.00
237 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Company
Liaoning Wellhope Food Company 30050956.12 8070.84 30059026.96
Linyi Helai Animal Husbandry Company 33048613.53 8691.66 33057305.19
Beijing Zhuolong Animal Health Products Trading
Company 214935.95 8691.66 223627.61
Shanghai Hehong Trading Company 213305.40 8691.66 221997.06
Tailai Wellhope Agriculture and Animal Husbandry
Company 144188889.81 4718.33 144193608.14
Hebei Taihang Wellhope Food Company 308527172.72 9064.17 308536236.89
Henan Wellhope Animal Husbandry Company 33082408.81 6663.61 33089072.42
Chifeng Wellhope Fuxinyuan Food Company 119011257.78 9933.33 119021191.11
Guangzhou Xiangshun Livestock Equipment Company 3011757.99 9933.33 3021691.32
Liaoning Wellhope Agriculture and Animal Husbandry
Development Company 97616576.24 16232.73 97632808.97
Shenyang Wellhope Aquatic Feed Company 15298129.27 10554.17 15308683.44
Gongzhuling Wellhope Ruminant Feed Company 5096832.03 11175.00 5108007.03
Linyi Wellhope Animal Husbandry Company 15012665.00 11175.00 15023840.00
Daqing Wellhope Bayi Agricultural Science and
Technology Company 39234364.21 11423.34 39245787.55
Dalian Wellhope Feed Company 42399255.04 5006779.50 47406034.54
Lankao Skyland Feed Company 46083167.51 11795.83 46094963.34
Pingyuan Wellhope Food Processing Company 210216677.21 25164.45 210241841.66
Jilin Dalong Wellhope Animal Husbandry Company 4144072.22 -3476.66 4140595.56
Haicheng New Hongzunda Animal Husbandry Company 34256913.35 1821.11 34258734.46
Nanyang Wellhope Feed Company 17940100.30 13037.50 17953137.80
Zhangjiakou Wellhope Agriculture and Animal Husbandry
Company 154899997.60 25081.66 154925079.26
Xingcheng Wellhope Feed Company 82810767.65 14279.16 82825046.81
Changchun Hengfeng Agriculture and Animal Husbandry
Company 255368.77 17383.33 272752.10
Changchun Wellhope Feed Company 84618102.62 17929.67 84636032.29
Shanghai Wellhope Feed Company 2321666.21 22970.83 2344637.04
Henan Herun Jiufeng Agriculture and Animal Husbandry
Company 42026189.41 27080.75 42053270.16
Shenyang Huakang Xinxin Food Company 1996916.03 37581.11 2034497.14
Liaoning Qingyuan Wellhope Agriculture and Animal
Husbandry Company 114723043.65 24833.34 114747876.99
Beijing Sanyuan Wellhope Animal Husbandry Company 8748077.21 35925.56 8784002.77
Xi'an Wellhope Feed Science and Technology Company 4718401.10 26075.00 4744476.10
Shenyang Wellhope Pig Breeding Company 30677.44 19030.61 49708.05
Pingyuan Wellhope Animal Husbandry Company 295498.80 27565.00 323063.80
Shenyang Huakang Broiler Company 68592234.45 8393.67 68600628.12
Wellhope Food (Shenyang) Company 5195372.23 31041.66 5226413.89
Shenyang Nongda Wellhope Feed Company 44598196.91 31588.00 44629784.91
Dalian Heyuan Animal Husbandry Company 103927486.41 33028.33 103960514.74
Shenyang Wellhope Animal Husbandry Company 83027758.78 34779.09 83062537.87
Dalian Huakang Xinxin Food Company 11705436.47 -9155.22 11696281.25
Shenyang Wellhope Ruminant Feed Company 6082558.95 47406.83 6129965.78
Shenyang Fengmei Biotechnology Company 20538649.99 39124.92 20577774.91
Gongzhuling Wellhope Animal Husbandry Company 35559713.86 39534.66 35599248.52
Lankao Wellhope Animal Husbandry Company 43134123.42 33483.61 43167607.03
Liaoning Expert Trading Company 73832607.22 54049.75 73886656.97
Liaoning Godaji E-commerce Company 20572086.72 66801.66 20638888.38
Heilongjiang Wellhope Animal Husbandry Company 120933039.51 74624.16 121007663.67
Dalian Zhongjia Food Company 337890.69 -166437.97 171452.72
Hunan Wellhope Agriculture and Animal Husbandry
Company 49000000.00 31000000.00 80000000.00
Dazhou Wellhope Biotechnology Company 17642857.21 17642857.21
238 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Siping Wellhope Food Company 14000000.00 47000000.00 61000000.00
Hebei New Taihang Wellhope Animal Husbandry
Company 20000000.00 20000000.00
Shandong Jiayixiang Agriculture and Animal Husbandry
Technology Company 8000000.00 19200000.00 27200000.00
Huaibei Wellhope Animal Husbandry Company 6250000.00 6250000.00
Mianyang Wellhope Biotechnology Company 5200000.00 5200000.00
Wellhope E-commerce (Liaoning) Company 1500000.00 8500000.00 10000000.00
Zhumadian Wellhope Agriculture Development Company 30000001.00 30000001.00
Jilin Wellhope Animal Husbandry Company 16241715.94 16241715.94
Dalian Hefengyuan Animal Husbandry Company 36400000.00 13244.44 36413244.44
Fuyu Wellhope Layer Company 5200000.00 5200000.00 0.00
Neihuang Wellhope Animal Husbandry Company 60000000.00 60000000.00
Kaifeng Wellhope Meat Food Company 100000000.00 100000000.00
Fuxin Wellhope Agriculture and Animal Husbandry
Company 30000000.00 30000000.00
Lingyuan Wellhope Agriculture and Animal Husbandry
Company 5000000.00 5000000.00 0.00
Siping Huiliang Wellhope Animal Husbandry Company 5100000.00 5100000.00
Heilongjiang Wellhope Dasenlin Animal Husbandry
Company 10200000.00 10200000.00
Tianjin Fengyunda Supply Chain Company 10000000.00 10000000.00
Anhui Wellhope Animal Husbandry Company 112154616.17 112154616.17
Tai’an Wellhope Feed Company 33055140.93 33055140.93
Qiqihar Wellhope Animal Husbandry Company 7650000.00 7650000.00 0.00
Mudanjiang Wellhope Animal Husbandry Company 23286048.10 23286048.10
Fuyu Wellhope Animal Husbandry Company 46602083.51 46602083.51
Daqing Bifeng Animal Husbandry Company 5100000.00 5100000.00
Shandong Heyuan Food Company 37759.87 37759.87
Liaoning Skyland Breeding Equipment Company 28667982.56 28667982.56
Tongliao Wellhope Tianyi Forage Industry Company 10200000.00 10200000.00
Jining Wellhope Animal Husbandry Company 19726723.27 19726723.27
Chongqing Wellhope Animal Husbandry Company 2230000.00 2230000.00 0.00
Qingdao Shenfeng Animal Husbandry Company 37402891.73 37402891.73
Zhangwu Wellhope Agricultural Development Company 1800000.00 1800000.00
Suihua Wellhope Animal Husbandry Company 27889500.00 27889500.00
Shenyang Xiangmai E-commerce Company 650000.00 650000.00
Lanxi Fengyuan Agriculture and Animal Husbandry
Company 2550000.00 2550000.00
Fengmei (Shenyang) Biological High-tech Industry
Research Institute Company 5000000.00 5000000.00
Anshan Jiuguhe Food Company and 12 other companies 1046590664.99 1046590664.99
Anhui Wellhope Haoxiang Agricultural Development
Company 4966.67 4966.67
Gongzhuling Wellhope Pig Breeding Company 5297.78 5297.78
Hebei Taihang Wellhope Feed Company 76449186.90 76449186.90
Siping Wellhope Breeding Company 12500000.00 12500000.00
Shandong Wellhope Agriculture and Animal Husbandry
Company 20000000.00 20000000.00
Total 4167552015.38 1390948994.18 21756750.75 5536744258.81
239 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
(2) Investment in associates and joint ventures
RMB
Changes in 2025
Investment gains
Opening balance Adjustments to Closing balance ImpairmentInvestee Additional Reduction in or losses Other Cash dividends(book value) other (book value) provision at
investment investment recognized under comprehensive changes in or profits Other period endthe equity income equity declaredmethod
1. Joint Ventures
Unphung Joint Venture
Company 4167616.44 4167616.44
Nepal Wellhope
Agri-tech Pvt. Ltd. 7501575.10 7501575.10
Nexus Well-Hope
Agritech International 0.00 17900000.00
Limited
Subtotal 11669191.54 11669191.54 17900000.00
2. Associated Companies
Huludao Jiuguhe Animal
Husbandry Company 0.00 -8100583.43 8100583.43 0.00
Huludao Jiuguhe Feed
Company 2454549.28 -97979.47 -17906.14 -2338663.67 0.00
Anshan Antai Plastic
Products Company 4808070.62 -186094.41 -4621976.21 0.00
Anshan Jiuguhe Paper
Packaging Company 8311081.66 394748.78 -8705830.44 0.00
Liaoning Yufeng
Biotechnology Company 9544660.02 -27674590.83 18129930.81 0.00
Jinzhou Xinfeng Food
Company 11880867.42 -14644774.91 2763907.49 0.00
Tai’an Jiuguhe
Agriculture Development 17041588.33 -29230797.66 12189209.33 0.00
Company
Linghai Jiuguhe Feed
Company 37633111.09 -4332710.26 -17906.14 -33282494.69 0.00
Anshan Fengsheng Food
Company 49842935.09 -2795139.74 -47047795.35 0.00
Tai’an Fengjiu Animal 85128552.40 -6359009.93 2696448.20 -81465990.67 0.00
240 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Husbandry Company
Jinzhou Jiufeng Food
Company 108666473.24 3103119.53 -111769592.77 0.00
Huludao Jiuguhe Food
Company 26802757.86 2739799.60 -29542557.46 0.00
Anshan Jiuguhe Food
Company 246435815.15 -3023223.21 -3013664.21 -240398927.73 0.00
Shenyang Wellhope
Jibaichuan Agricultural 350000.00 -350000.00 0.00
Trading Company
Hebei Taihang Wellhope
Feed Company 724524.46 -193085.12 -531439.34 0.00
Wudalianchi Shengda
Pasture Specialized 0.00
Cooperative
Jilin Jinfeng Animal
Husbandry Company 17699749.61 9000000.00 1186089.31 5188500.00 4697338.92
Chongqing Dahong
Agriculture and Animal
Husbandry Machinery 10372373.64 8820000.00 603414.14 19795787.78
Company
Liaoning Xinjuntong
Logistics Technology 1359145.08 342310.80 1701455.88
Company
Shihaipu (Beijing)
Science and Trade 2401334.11 6452.84 2407786.95
Company
Hebei Taihang Wellhope
Animal Husbandry 33363055.72 8100000.00 1272685.05 26535740.77
Company
Dunhua Fengda Broiler
Breeding Company 7937157.40 -237593.51 7699563.89
Shulan Fengtai Organic
Fertilizer Company 1526679.56 -137109.43 1389570.13
Qingdao Shenfeng
Animal Husbandry 12357893.73 -20002.00 -12337891.73 0.00
Company
Jiyuan Sunshine Rabbit
Industry Technology 9956201.37 -1356397.04 8599804.33
Company
241 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Shandong Mingxiang
Biotechnology Company 3500000.00 -18141.81 3481858.19
Hainan State Farm
Wenfeng Wenchang
Chicken Industry (Group) 917203.60 -34386.37 882817.23
Company
Dandong Wellhope
Chengsan Animal 121244199.91 11274453.34 132518653.25
Husbandry Company
Xinjiang Wellhope Food
Processing Company 4800000.00 -3338113.90 1461886.10
Shandong Qunxiang
Food Company 17500000.00 -271554.39 17228445.61
Liaoning Mubang
Livestock Equipment 12791031.69 315557.57 13106589.26
Manufacturing Company
Weifang Wellhope
Xinhesheng Feed 5527320.21 -307317.82 5220002.39
Company
PT. Sekar Golden
Harvesta Indonesia 32396435.64 937006.05 -2026465.82 31306975.87
Wudalianchi Zhongwang
Dairy Cow Breeding
Farmers Specialized 764945.13 -305956.35 458988.78
Cooperative
Shenyang Zhongwenjie
Biotechnology Company 15210899.22 6920532.48 22131431.70
Beijing Dahong
Hengfeng Animal
Husbandry Technology 24141705.81 531691.06 24673396.87
Company
Gongzhuling Wellhope
Corn Procurement and 41964028.85 2580140.86 44544169.71
Storage Company
Dandong Wellhope
Chengsan Food Company 109839361.33 4429235.81 114268597.14
PT. Mulia Harvest
Agritech in Indonesia 64972169.87 -1686586.31 -4272602.09 2681110.00 56331871.47
Dalian Chengsan Food
Group Company 370337585.91 10164235.92 7000000.00 373501821.83
242 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Lankao Skyland Duck
Industry Company 39133402.20 -199811.77 38933590.43
Chongqing Kuizhou
Rabbit Industry Company 11595243.41 3500000.00 843951.89 15939195.30
Beipiao Hongfa Food
Company 604371761.65 72244037.27 10780000.00 665835798.92
Hetian Wellhope Animal
Husbandry Company 14400000.00 1667749.73 16067749.73
Golden Harvesta Inc.Philippines 144328704.25 20297945.53 40435835.54 -14151322.90 393313.72 191304476.14
Subtotal 2305784575.52 73167945.53 17100000.00 57092087.90 -20803419.10 393313.72 25649610.00 -530859529.00 1842025364.57
Total 2317453767.06 73167945.53 17100000.00 57092087.90 -20803419.10 393313.72 25649610.00 -530859529.00 1853694556.11 17900000.00
243 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
4. Operating revenue and cost
(1) Information of revenue and cost
RMB
Item 2025 2024Revenue Cost Revenue Cost
Revenue from principal businesses 707794199.31 530857125.76 675678445.71 506895695.24
Revenue from other businesses 3393400.74 1718826.33 6371688.73 2949936.40
Total 711187600.05 532575952.09 682050134.44 509845631.64
(2) Split of revenue and cost
RMB
Contract classification TotalOperating revenue Operating cost
Type of goods
Feed products 707794199.31 530857125.76
Other products 3393400.74 1718826.33
Classified by timing of transfer of goods
Revenue recognized at a point in time 710330457.21 532575952.09
Revenue recognized over time 857142.84
Total 711187600.05 532575952.09
Explanation:
The Company’s sales of feed products are performance obligations satisfied at a point in time under the
sales contracts. Revenue from such performance obligations is recognized when the customer obtains
control of the related goods. The Company’s asset leasing business involves performance obligations
satisfied over time under the lease contracts. Revenue from such performance obligations is recognized
over time by reference to the progress toward complete satisfaction of the performance obligations.
5. Investment income
RMB
Item 2025 2024
Income from long-term equity investments accounted for using the cost
method 123633086.95 60863493.36
Income from long-term equity investments accounted for using the equity
method 57092087.90 117945879.18
Investment income from disposal of long-term equity investments -3083447.94 -11591131.17
Investment income from disposal of derivative financial instruments and
others 6050694.93 6844.16
Total 183692421.84 167225085.53
XIX. Supplementary Information
1. Extraordinary items in 2025
RMB
Item Amount Note
Gains or losses on disposal of non-current assets including the reversal of
previously recognized impairment provisions -19071287.35
Government grants recognized in profit or loss for the period excluding those
closely related to the Company’s ordinary business in line with national policies
granted according to defined criteria and having a continuing impact on the 38265999.01
Company’s profit or loss
244 / 245Wellhope Foods Co. Ltd. 2025 Annual Report
Gains or losses arising from changes in fair value of financial assets and financial
liabilities held by non-financial enterprises and gains or losses on disposal of such
financial assets and financial liabilities other than effective hedging activities 4142203.96
related to the Company’s ordinary business
Reversal of impairment provisions for receivables individually tested for
impairment 6399293.02
Gains arising where the cost of investments in subsidiaries associates and joint
ventures is less than the Company’s share of the fair value of the investees’ 3443489.11
identifiable net assets at the acquisition date
Other non-operating income and expenses not listed above 9254605.28
Other items that meet the definition of non-recurring gains or losses 114612999.75
Less: Income tax effects 24031038.65
Effect on non-controlling interests (net of tax) 5127510.80
Total 127888753.33
2. Return on equity and earnings per share
Weighted Earnings per share
Profit in 2025 average Basic Diluted
ROE % EPS EPS
Net profit attributable to ordinary shareholders of the Company 0.79 0.06 0.06
Net profit attributable to ordinary shareholders of the Company
after deducting non-recurring gains and losses -1.13 -0.08 -0.08
Chairman of the Board of Directors: Jin Weidong
Date of Board approval for submission: April 30 2026
沪公网安备31011802005267号
