2025 Annual Report of Zhejiang NHU Co. Ltd.
Zhejiang NHU Co. Ltd.2025 Annual Report
April 20262025 Annual Report of Zhejiang NHU Co. Ltd.2025 Annual Report
Section I Important Notes Contents and Definitions
The Board of Directors and its members and senior management of the
Company hereby guarantee that the information presented in this annual
report is authentic accurate complete and free of false records misleading
statements or material omissions and they will bear individual and joint
liabilities for such information.Hu Baifan the Company’s legal representative Shi Guanqun the officer in
charge of accounting and Wang Xiaobi the head of the accounting
department hereby declare that they guarantee the financial reports in this
annual report are authentic accurate and complete.Except for the directors listed below all other directors attended the board
meeting in person to review this annual report.Name of the Position of the
Reason for not
director who did director who did
attending the meeting Name of Proxy
not attend in not attend in
in person
person person
Wang Xuewen Director Official business Shi Guanqun
12025 Annual Report of Zhejiang NHU Co. Ltd.
The future plan and other forward-looking information disclosed in this
annual report shall not be regarded as a substantive commitment to investors.We kindly remind investors of all possible risks in investments.We draw your attention to item “XI. Outlook for the Future Development ofthe Company” under “Section III Management Discussion and Analysis”
which explicitly states the possible risks in business operation and
countermeasures thereon.Profit distribution plan deliberated and approved by the meeting of the Board
of Directors is as follows: Based on total share capital of 3070283398 shares
which is derived from the existing total share capital after deducting the shares
held in the repurchase-dedicated securities account [Note] the Company
intends to distribute cash dividend of 8.00 yuan (tax included) and 0 bonus
shares per 10 shares to all shareholders and no conversion of capital reserve
into share capital will be carried out.[Note] The Company’s total share capital is 3073421680 shares including 3138282 shares inthe repurchase-dedicated securities account. According to the “Rules on Share Repurchase ofListed Companies” shares in the special account for repurchase of listed companies carry no right
of profit distribution and conversion of capital reserve into share capital.If the Company’s total share capital changes due to the conversion of convertible bonds share
repurchase exercise of equity incentives refinancing and listing of new shares etc. before the
implementation of the profit distribution proposal the total distribution will be adjusted
accordingly based on the same distribution ratio.This Annual Report is an English translation of the Chinese Annual Report. In case the English
version does not conform to the Chinese version the Chinese version prevails.
22025 Annual Report of Zhejiang NHU Co. Ltd.
Contents
Section I Important Notes Contents and Definitions... 1
Section II Company Profile and Key Financial Indic....6
Section III Management Discussion andAnalysis ...... 11
Section IV Corporate Governance Environment and So.. 63
Section V Significant Events ........................88
Section VI Movements in Shares and Conditions of S. 101
Section VII Bonds ................................. 111
Section VIII Financial Report ..................... 112
32025 Annual Report of Zhejiang NHU Co. Ltd.
Documents Available for Reference
I. Financial statements signed and sealed by the Company’s legal representative officer in charge of accounting and head of the
accounting department;
II. The original audit report with the seal of the accounting firm and the signature and seal of the certified public accountants;
III. Originals of all the Company’s documents and announcements published in newspapers designated by CSRC during the
reporting period;
IV. Other documents for reference.
42025 Annual Report of Zhejiang NHU Co. Ltd.
Definitions
Abbreviations Refers to Contents of definitions
The Company NHU Refers to Zhejiang NHU Co. Ltd.CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory
CSRC Zhejiang Office Refers to
Commission Zhejiang Office
PPS Refers to Polyphenylene sulfide
PPA Refers to Polyphthalamide
HSE Refers to Health safety and environment
China National Accreditation Service for
CNAS Refers to
Conformity Assessment
DSC Refers to Differential scanning calorimetry
ARC Refers to Accelerating rate calorimetry
RC1e Refers to Reaction calorimeter
IPDA Refers to Isophorone diamine
HDI Refers to Hexamethylene diisocyanate
CFD Refers to Computational fluid dynamics
MKB Refers to Methyl butyl ketone
PI Refers to Polyimide
PSU Refers to Polysulfone
CAGR Refers to Compound annual growth rate
52025 Annual Report of Zhejiang NHU Co. Ltd.
Section II Company Profile and Key Financial Indices
I. Company Profile
Stock abbreviation NHU Stock code 002001
Stock exchange Shenzhen Stock Exchange
Company name in Chinese Zhejiang NHU Co. Ltd.Company abbreviation in
NHU
Chinese
Company name in foreign
ZHEJIANG NHU COMPANY LTD.languages (if any)
Company abbreviation in
NHU
foreign language (if any)
Legal representative Hu Baifan
Registered address No.418 Xinchang Dadao West Road Qixing Street Xinchang County Zhejiang P.R.China
Postal code of the registered
312500
address
On May 28 2020 the Company’s registered address was changed from No.4 Jiangbei Road
Historical changes of
Yulin Sub-district Xinchang County Zhejiang Province China to No.418 Xinchang Dadao West
registered address
Road Qixing Street Xinchang County Zhejiang P.R.China
Office address No.418 Xinchang Dadao West Road Qixing Street Xinchang County Zhejiang P.R.China
Postal code of office address 312500
Company website http://www.cnhu.com
E-mail 002001@cnhu.com
II. Contact Information
Items Board secretary Securities affairs representative
Name Shi Guanqun Zeng Shuying
No.418 Xinchang Dadao West Road No.418 Xinchang Dadao West Road
Contact address Qixing Street Xinchang County Qixing Street Xinchang County
Zhejiang P.R.China Zhejiang P.R.China
Tel. (0575)86017157 (0575)86017157
Fax (0575)86125377 (0575)86125377
E-mail sgq@cnhu.com 002001@cnhu.com
III. Information Disclosure and Location
The stock exchange website where the Company discloses the
Shenzhen Stock Exchange: http://www.szse.cn
annual report
Media and websites on which the Company discloses the Securities Times Shanghai Securities News China Securities
annual report Journal and CNINFOWebsite(www.cninfo.com.cn)
The site where the annual report was prepared and completed Securities Department of the Company
62025 Annual Report of Zhejiang NHU Co. Ltd.
IV. Change of Registration
Unified social credit code 91330000712560575G
Changes of main business scope since listing (if any) None
Changes of controlling shareholders (if any) None
V. Other Relevant Information
Accounting firm engaged by the Company
Grant Thornton Certified Public Accountants (Special General
Name
Partnership)
5th Floor Set Plaza No. 22 Jianguomenwai Avenue Chaoyang
Office address
District Beijing China
Signatory Certified Public Accountants Xu Hongjin Wang Yun
The sponsor institution engaged by the Company which performed the duty of continuous guidance and supervision during the
reporting period
□ Applicable□ Not applicable
The financial advisor engaged by the Company who performed the duty of continuous guidance and supervision during the
reporting period
□ Applicable□ Not applicable
VI. Key Accounting Data and Financial Indices
Whether the Company needs to perform a retroactive adjustment or restatement on the financial data of prior years
□ Yes□ No
Items Year 2025 Year 2024 YoY growth rate Year 2023
Operating revenue (yuan) 21609592228.45 2.97% 15116537003.30
22251361880.58
Net profit attributable to
shareholders of the listed 6764199225.29 5868545988.62 15.26% 2704238767.54
company (yuan)
Net profit attributable to
shareholders of the listed
company after deducting 6737938475.03 5828938494.33 15.59% 2614210640.58
non-recurring profit or loss
(yuan)
Net cash flows from 8797431340.92 7073064183.33 24.38% 5119370863.32
operating activities (yuan)
Basic earnings per share
2.211.9115.71%0.87
(yuan/share)
Diluted earnings per share
2.211.9115.71%0.87
(yuan/share)
Weighted average return on
21.87% 21.78% Increased by 0.09% 11.24%
equity
Items December 31 2025 December 31 2024 YoY growth rate December 31 2023
Total assets (yuan) 45606449805.48 42989132470.97 6.09% 39156246864.67
72025 Annual Report of Zhejiang NHU Co. Ltd.
Items Year 2025 Year 2024 YoY growth rate Year 2023
Net assets attributable to
shareholders of the listed 32805654181.90 29324997728.95 11.87% 24804662320.99
company (yuan)
The lesser of the Company's net profit before and after deducting non-recurring profit or loss for each of the most recent three
accounting years was negative and the most recent year's audit report indicates uncertainty about the Company's ability to
continue as a going concern.□ Yes□ No
During the reporting period the lowest of audited profit before tax net profit and net profit after deducting non-recurring profit or
loss was negative.□ Yes□ No
VII. Differences in Accounting Data Under Chinese Accounting Standards and Overseas
Accounting Standards
1. Difference in Net Profit and Net Assets in Financial Reports Disclosed Respectively Under IFRS
Standards and Chinese Accounting Standards
□Applicable□ Not applicable
During the reporting period the Company has no difference in net profit or net assets in financial reports disclosed respectively
under IFRS Standards and Chinese accounting standards.
2. Difference in Net Profit and Net Assets in Financial Reports Disclosed Respectively Under Overseas
Accounting Standards and Chinese Accounting Standards
□Applicable□ Not applicable
During the reporting period the Company has no difference in net profit or net assets in financial reports disclosed respectively
under overseas accounting standards and Chinese accounting standards.VIII. Key Financial Indices by Quarter
Unit: RMBYuan
Items First quarter Second quarter Third quarter Fourth quarter
Operating revenue 5439577817.97 5661055018.81 5541468928.14 5609260115.66
Net profit attributable
to shareholders of the 1879910462.58 1723413516.58 1717397711.55 1443477534.58
listed company
Net profit attributable
to shareholders of the
listed company after
1879705376.851798857163.711654407973.041404967961.43
deducting
non-recurring profit or
loss
Net cash flows from
1595982605.811646745196.502399461116.943155242421.67
operating activities
Whether there is a significant difference between the above financial indices or their totals and the corresponding financial indices
disclosed in quarterly or semi-annual reports
□ Yes□ No
82025 Annual Report of Zhejiang NHU Co. Ltd.
IX. Non-Recurring Profit or Loss
□Applicable □ Not applicable
Unit: RMBYuan
Items Year 2025 Year 2024 Year 2023 Remarks
Gains or losses on disposal of
non-current assets including
-12973451.0819289871.705426533.21
write-off of provision for
impairment
Government grants included
in profit or loss (excluding
those closely related to
operating activities of the
Company satisfying
85292283.0371547646.3463050565.94
government policies and
regulations enjoyed based on
certain standards and having
a continuing impact on the
Company's profit or loss)
Gains or losses on changes in
fair value of financial assets
and financial liabilities held
by non-financial enterprises
and gains or losses arising
from disposal of financial -18236228.19 -36923997.96 34458488.77
assets and financial liabilities
excluding those arising from
effective hedging business
related to the Company's
normal operating activities
Fees for the use of funds
charged to non-financial
465887.82
enterprises included in profit
or loss for the current period
Gains or losses on assets
consigned to the third party
808128.7212715401.91
for investment or
management
Gains or losses from debt
-847442.05
restructuring
Other non-operating revenue
-6124604.34654343.784406027.43
or expenditures
92025 Annual Report of Zhejiang NHU Co. Ltd.
Items Year 2025 Year 2024 Year 2023 Remarks
Less: Enterprise income tax
16961183.628827724.9929488260.00
affected
Non-controlling interest
4736065.546940773.30159076.07
affected (after tax)
Total 26260750.26 39607494.29 90028126.96 --
Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:
□ Applicable□ Not applicable
The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteriafor Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss
□ Applicable□ Not applicableThe Company has no situation of defining non-recurring profit or loss listed in the “Interpretation Pronouncement on InformationDisclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss.
102025 Annual Report of Zhejiang NHU Co. Ltd.
Section III Management Discussion and Analysis
I. The Main Business of the Company During the Reporting Period
The Company is a national high-tech company mainly engaged in the production and sales of
nutrition aroma chemicals polymer materials and active pharmaceutical ingredients (APIs). It
focuses on fine chemicals adheres to the concept of innovation-led development and
competition-driven growth and continuously develops various functional chemicals based on the
two core platforms of "Chemical+" and "Biology+" providing products and solutions to
customers in more than 100 countries and regions around the world. It continuously improves the
quality of human life with high-quality healthy and green products and continuously creates
value for stakeholders. With leading technology scientific management and sincere service the
Company has become one of the major vitamin producers in the world one of China’s top 100
fine chemical companies one of the top 10 companies in China’s light industry fragrance and a
well-known special engineering plastics manufacturer.
1. Main Products and Applications
Nutrition: Currently the Company's product portfolio mainly covers vitamins amino acids and
pigments. The specific products include vitamin E vitamin A vitamin C methionine vitamin D3
biotin coenzyme Q10 carotenoids vitamin B5 vitamin B6 vitamin B12 serine cystine
tryptophan etc. They are mainly used in feed additives food additives nutrition and health
supplements. The Company continues to expand its nutrition business. By optimizing the
processing line and tackling key issues it continuously improves the competitiveness of existing
products. New products are being developed through serialization large-scale production and
high-value-added strategies enabling rapid growth and steadily consolidating the company's
industry position. In addition under the guidance of the green development concept and through
internal integration and external cooperation it embraces the ideology of open cooperation. It
actively deploys cutting-edge biotechnology and builds the Company’s "Biology+" platform.Aroma chemicals: At present the Company currently mainly produces linalool citral
cis-3-hexenol methyl dihydrojasmonate raspberry ketone ligustral menthol etc. which are
112025 Annual Report of Zhejiang NHU Co. Ltd.
widely used in personal care household products cosmetic and food fields. The Company is a
significant global supplier in the aroma chemicals industry in terms of both competitiveness and
market share. It continuously innovates and enriches the varieties of fragrance products explores
bio-based products and consistently meets market demand.Polymer materials: The Company focuses on the development of high-performance polymers and
key intermediates and moderately develops downstream applications of materials. The main
products include PPS PPA HDI IPDA etc. Major downstream applications mainly cover
automotive electronic appliance environmental protection and industrial sectors. The entire
industry chain of PPS from raw materials to high molecular polymers then through modifying
processing to special fibers has enabled the Company as the only company in China that can
stably produce fiber grade injection molding grade extrusion grade and coating grade PPS. At
the same time the new nylon materials industry chain project is advancing approval for mass
production. During the reporting period the Company achieved major breakthroughs in the R&D
of bio-based materials. Bio-based PPS was officially launched and the IPDI product series
produced through a green closed-loop process has entered the high-end market.APIs: The main products are concentrated in a series of vitamins antibiotics and pharmaceutical
intermediates. The specific products include moxifloxacin hydrochloride vitamin A vitamin D3
etc. which are mainly used as active pharmaceutical ingredients for processing and producing
pharmaceutical preparations.
2. Main Business Models
(1) Procurement Model
The Company has always been adhering to the procurement principle of "fairness transparency
and optimal cost" and adopts a dual strategy of long-term strategic cooperation and open
competitive procurement and deepens analysis of market trends and market conditions to ensure
a stable supply of the strategic materials. The Company pays attention to source procurement
reducing intermediate links and lowering procurement costs. It implements transparent
procurement and continuously optimizes the procurement information management system to
make the procurement process more transparent standardized and efficient. Suppliers with good
122025 Annual Report of Zhejiang NHU Co. Ltd.
reputations and high-quality products are selected and quality assurance agreements are signed to
ensure the stable and reliable performance of procured items. We will give priority to products
and services that support environmental protection energy conservation and sustainable
development encourage suppliers to adopt green production and operational practices and
gradually advance carbon reduction and carbon neutrality plans. The Company selects suppliers
with a strong sense of social responsibility monitors their social responsibility performance and
builds long-term partnerships to ensure the sustainability of procurement activities.
(2) Production Model
The Company has always been adhering to the production strategy based on the principle of
"production and sales coordination efficient operation excellent quality and cost leadership".The Company maintained a balance between production and sales through analysis of changes in
market demands and reasonable production plans. In addition the Company keeps innovating the
production model digging out internal potentials and optimizing the production process. It
continues to enhance lean operation levels reduces the energy consumption per 10000 RMB of
output value in order to promote safe green standardized and efficient production and
continuously improve the competitiveness of its products.
(3) Sales Model
The Company has always been adhering to the "customer-centric market-oriented" sales strategy.It divides business lines by product application fields and establishes a sales model that suits
market needs according to market characteristics and industry practices. Most of the Company’s
sales are achieved through direct selling. By doing so it establishes long-term and stable strategic
cooperative relationships with end customers to create greater value for them. Meanwhile it also
selects excellent agents or distributors for distribution. By doing so it serves customers indirectly
based on market and customer features. Furthermore through initiatives such as hosting
Customer Service Month programs strengthening strategic collaborations with customers
establishing customer evaluation models and optimizing customer hierarchical management the
Company continuously expands its market reach acquires new large-scale customers and
enhances its brand influence.
132025 Annual Report of Zhejiang NHU Co. Ltd.
3. Key Performance Drivers
The Company has built modern manufacturing bases in Zhejiang Xinchang Zhejiang Shangyu
Shandong Weifang Heilongjiang Suihua Tianjin Binhai New Area etc. It adheres to the
development strategy of integration serialization and synergy and insists on innovation-driven.Relying on the solid foundation of the fine chemical industry it focuses on "Chemical+" and
"Biology+" and has formed an industrial chains as well as an NHU featured R&D models
supported by interdependent technology and industrial platforms. Not only can its products
connect bulk basic chemical raw materials in the upstream but also extend to functional
chemicals such as special intermediates nutrition aroma chemicals new polymer materials and
APIs in the downstream. It has formed a deeply layered product network structure to resist risks
and respond to market emergencies.In 2025 the Company centered on the operating guiding ideology of "accelerating overseas
layout and market expansion enhancing innovation for development upgrading capability and
management and preventing risks through prudent operation" forged ahead and tackled
difficulties. For the full year it achieved operating revenue of RMB 22251361880.58 a
year-on-year increase of 2.97%; net profit attributable to shareholders of the listed company was
RMB 6764199225.29 a year-on-year increase of 15.26%. The Company claimed the top
position in both the China Top 100 Fine Chemical Companies and the China Top 10 Fine
Chemical Innovation and Development Companies and was also named among China’s 50 Top
Multinational Companies and Top 100 Chinese Multinational Private Enterprises.
(1) Drive Performance Breakthroughs with Sales as the Core Driver
During the reporting period the Company seized market opportunities achieving continued
growth in the markets for vitamins pigments and fragrances. Both volume and price of
methionine increased new materials experienced strong production and sales and APIs recorded
notable growth. While consolidating the market advantages of existing products the Company
actively promoted the market expansion of new products leading to steady performance
improvement in new application scenarios and emerging markets. Through synergistic efforts in
production supply and R&D production efficiency continued to rise.
142025 Annual Report of Zhejiang NHU Co. Ltd.
(2) Build a New International Landscape Through Overseas Expansion
During the reporting period sales subsidiaries in Vietnam and Turkey were officially put into
operation and the global localized operating model is maturing through exploration. Overseas
warehouses such as those in Singapore were established and put into use steadily enhancing the
Company’s overseas logistics and delivery capabilities. The site selection and team formation for
the Japan research institute were completed and the international R&D mechanism was gradually
refined. The implementation of management systems for overseas subsidiaries and the successful
launch of the overseas information system elevated the operational management level. A
standardized process for overseas talent recruitment was established marking a new step forward
in the Company’s international campus recruitment efforts.
(3) Focus on Strategic Implementation with Projects as the Support
During the reporting period the Company remained committed to its core business in fine
chemicals adhering to the concept of innovation-led development and competition-driven growth.It continued to advance the refined operation of existing products continuously optimized
production processes and enhanced product quality and operational efficiency. At the same time
the Company steadily advanced the R&D and construction of new projects and products
consolidating the foundation for business development injecting new momentum for sustainable
high-quality growth and further strengthening its core competitiveness in this sector. Nutrition:
During the reporting period the Company's production capacity layout continued to be optimized
and project construction yielded remarkable results. The Company’s 180000 tons/year liquid
methionine (pure equivalent) project jointly built with China Petroleum & Chemical Corporation
successfully completed a one-time trial run and has now officially commenced production. This
further enhances the nutrition products portfolio. The 70000-ton methionine integration upgrade
project has completed all construction work passed acceptance checks and commenced smooth
production. As a result the Company's solid methionine production capacity has increased to
370000 tons/year significantly enhancing both production scale and market competitiveness
supporting sustained operating revenue growth in this segment. Aroma chemicals: The Company
continued to advance product structure optimization and industrial upgrading. The aldehyde series
project and the first phase of the fragrance industrial park were steadily implemented as planned
with all construction works being carried out in an orderly manner. These initiatives will further
152025 Annual Report of Zhejiang NHU Co. Ltd.
enrich the Company’s aroma chemicals product categories increase product added value meet
diversified market demands and solidify the Company’s position as a key global supplier in the
aroma chemicals industry. New materials: The Company accelerated project layout and
construction progress. The nylon industrial chain project at the Tianjin base has obtained all
necessary compliance approvals for resources such as energy and land and construction officially
commenced during the reporting period with all construction works progressing steadily. This
project will further refine the Company’s new materials industrial chain layout. The fourth phase
of the Company’s PPS project is being implemented in an orderly manner as planned. Upon
completion it will significantly expand the Company’s PPS production capacity and enhance its
market competitiveness in the new materials sector. APIs: The Company continued to drive
product R&D and capacity release continuously enriching its API product system. This has laid a
solid foundation for the Company’s ongoing expansion in the pharmaceutical API sector
supporting high-quality growth in this segment. Other technological transformation upgrading
and management improvement projects progressed steadily and planning for reserved and new
projects was carried out in an orderly manner.
(4) Accelerate the Cultivation of Development Momentum with Innovation as the Engine
The Company consistently adheres to innovation-driven development maintaining robust R&D
investment to enhance its internal growth momentum. By categorizing and prioritizing various
R&D and technological transformation projects the Company ensures precise allocation of
resources to strategic projects. On one hand it continues to deepen efforts in the R&D of new
products continuously expanding its product categories. On the other hand it systematically
reviews special projects aimed at enhancing the competitiveness of existing products driving
continuous improvements and innovation to strengthen product competitiveness. During the
reporting period multiple key projects reached milestone stages technological transformation
projects provided support for product cost reduction and platform capabilities continued to
strengthen. Several critical technological challenges were successfully addressed strongly
supporting project R&D and construction. The Company also collaborated with well-known
scientific research institutes at home and abroad establishing a technology resource repository
and a unit technology database to lay a solid foundation for technological innovation.
162025 Annual Report of Zhejiang NHU Co. Ltd.
(5) Enhance Management Quality and Efficiency with Systemization as the Lever
The Company unveiled its intelligent manufacturing factory system and the factory-level
intelligent manufacturing system pilot was implemented at the Shandong NHU Amino-acids Co.Ltd. and Xinchang bases. The engineering construction standardization system was piloted in the
Tianjin project exploring standardized practices such as soil-free construction. Advanced process
equipment was introduced and more than 100 equipment-related challenges were addressed
continuously improving equipment capabilities. The job competency framework has been
implemented and put into practice with qualification standards for various functional lines
continually refined. The integration of corporate culture into workshop standardization has
yielded significant practical results.
(6) Consolidate the Foundation for Steady Operations with Compliance as the Bottom Line
The HSE management system has been continuously upgraded and quality-focused initiatives
have been steadily advanced. The confidential system pilot proceeded smoothly establishing a
replicable management and technical control model. The internal control system has been
comprehensively optimized. The Company has been rated "A" in information disclosure by the
Shenzhen Stock Exchange for 17 consecutive years and has repeatedly received honors such as
the Tianma Award and recognition as one of the Top 30 Zhejiang Listed Companies for Best
Internal Control.During the reporting period the Company’s main business and its business model remained
unchanged.II. The Industry in Which the Company Operates During the Reporting Period
The Company mainly operates in the fine chemical industry. Relying on the two core technology
platforms of "Chemical+" and "Biology+" it produces various functional chemicals including
nutrition aroma chemicals new materials and APIs.Nutrition:
The overall trend of global population growth remains unchanged with the degree of aging
continuously deepening. As people pursue a healthy life and quality living the demand for
products in the large health sector such as health supplements pharmaceuticals and infant health
will always be maintained and continue to grow. According to a UN report the global population
172025 Annual Report of Zhejiang NHU Co. Ltd.
is projected to reach 10.3 billion in 2080. Mortality rates are expected to decline further with the
global average life expectancy reaching around 77.4 years by 2054 highlighting an increasingly
evident trend of population aging1.Vitamins and methionine are the representatives of the nutritional products market. As the largest
producer of vitamins China produced about 0.491 million tons of vitamins in 2025 (note:
calculated as the sum of all vitamin products converted to a unified content standard excluding
choline chloride) accounting for 89% of global production according to the statistics of Boyar.Exports were estimated at about 0.374 million tons accounting for 76% of domestic production.In 2025 China's livestock and poultry capacity was undergoing high-level adjustments with
declining profitability in pig and poultry farming. Overall feed ingredient prices were fluctuating
downward while new industry projects continued to increase. The production capacity of some
new manufacturers had come online exerting pressure on vitamin market prices2. According to
Boyar Research the capacity of national livestock products remained at a high level in 2025 with
feed consumption continuing to expand. Converted to the compound feed caliber the full-year
feed consumption in 2025 was estimated to increase by approximately 5% year-on-year3.Methionine is the only sulfur-containing amino acid among essential amino acids and is the first
limiting amino acid in poultry high-yield dairy cows and fish. At present the main production
process of methionine is chemical synthesis and its production process and engineering is
complex with high capital and technical barriers. According to the statistics of Boyar the global
methionine (calculated as 99% purity liquid methionine × 0.8 the same below) capacity in 2025
was estimated at 2.485 million tons a year-on-year increase of 13.0% and China's methionine
capacity was 1.084 million tons a year-on-year increase of 47.3%. In 2025 global methionine
production is estimated at 2.179 million tons a year-on-year increase of 9.0% while the total
domestic supply is 0.582 million tons a year-on-year increase of 23.7%. Both imports and
exports of methionine in China maintained growth in 2025. China exported 0.458 million tons a
year-on-year increase of 20.5% and imported 0.176 million tons a year-on-year increase of
12.1%. Based on Boyar's 2025 forecast data the global methionine market was expected to
1 United Nations Department of Economic and Social Affairs "World Population Prospects 2024"
2 Boyar "2025 Vitamin Market Annual Analysis Report"
3 Boyar "2025 China Vitamin Industry Development Report"
182025 Annual Report of Zhejiang NHU Co. Ltd.
maintain a growth rate of about 6% with an annual demand increase exceeding 0.1 million tons.In 2025 methionine prices showed a trend of being initially high and later lower. The global
demand for methionine in 2025 was approximately 1.85 million tonnes at a year-on-year increase
of 8.8%. The domestic egg and poultry farming profitability improved temporarily demand for
methionine in feed increased year-on-year and domestic demand was about 0.5 million tons4.According to Boyar data and forecasts adding 0.1% to 0.25% methionine to broiler feed is the
most effective stage for improving feed utilization. In China the proportion of methionine added
to broiler feed is currently about 0.1% and there is considerable room for improvement.Aroma chemicals:
The aroma chemicals industry is a complementary industry of the national economy and the
independent high-level aroma chemicals industry is crucial to the independent high-level food
tobacco and daily chemical industries. The sector encompasses aroma chemicals (synthetic and
natural fragrances daily chemical fragrances food fragrances tobacco fragrances etc.) which
are used in personal care household products food beverage and other daily life scenarios.According to the "14th Five-Year Plan for the development of the aroma chemicals industry"
published by the China Aroma Chemicals and Cosmetic Industry Association since the beginning
of the 21st century China's synthetic fragrance industry has developed rapidly and has gradually
grown into a core supplier for the global market. Chinese synthetic fragrance companies possess
clear international competitiveness in the production and sale of traditional synthetic fragrances
notably reflected in scale advantages for bulk varieties category advantages for certain specific
varieties and the emergence of leading enterprises of a certain scale. Downstream industries such
as food daily chemicals and tobacco continue to upgrade; demand for natural health-oriented
and functional aroma chemicals is growing rapidly; and the emerging field of fragrance
aromatherapy and scented products is expanding market space. expanding market space. It is
expected that by 2025 the main business income of China's aroma chemicals industry will reach
50 billion yuan5.
4 Boyar "2025 Amino Acid Market Annual Analysis Report"
5 China Aroma Chemicals and Cosmetic Industry Association "14th Five-Year Plan for the development of the aroma chemicals
industry"
192025 Annual Report of Zhejiang NHU Co. Ltd.
At present China's aroma chemicals have become an important bridge to carry out cultural
exchanges trade and economic cooperation with countries along the "Belt and Road" and a major
export earning industry. In 2024 China's aroma chemicals market size reached 46.5 billion yuan
a year-on-year increase of 5.9% with the industry maintaining a steady development situation
overall. The total annual output was 0.633 million tons with clear performance across segments:
fragrance output was 0.245 million tons with corresponding sales of 18.6 billion yuan and flavor
output was 0.388 million tons with sales of 27.9 billion yuan6. The global aroma chemicals
market was estimated to be approximately USD 41.141 billion in 2025 a year-on-year increase of
6% and is expected to grow to USD 53.4 billion by 2029 with an annual growth rate of nearly
6.8%7.
New Materials:
As a strategic and fundamental industry new materials has become an important symbol for
measuring the economic and technological strength of a country or region. The
"Recommendations of the Central Committee of the Communist Party of China for Formulating
the 15th Five Year Plan for National Economic and Social Development" proposes fostering
emerging industries and industries of the future and accelerating the development of industrial
clusters in strategic emerging fields such as new energy new materials and the low altitude
economy8 all of which have huge demand for new materials. Polymer materials include
general-purpose plastics engineering plastics and special engineering plastics and downstream
processing forms include modified composite materials films fibers foams coatings etc. which
are widely used in traditional fields such as automobiles electronic appliances as well as new
energy 5G communication and other emerging fields. With the upgrading of consumption and
the high-quality development of the manufacturing industry the polymer materials industry holds
immense growth potential.Special engineering plastics primarily include four high-demand categories: high-performance
polyamide (PPA) polyphenylene sulfide (PPS) polyimide and polysulfone (PI). At present
6 Industry Research Center China Aroma Chemicals and Cosmetic Industry Association
https://mp.weixin.qq.com/s/Mv7bZUVoAITZlxKlJbdaSA
7 iiMedia Research Technavio & Infiniti Research: Global Aroma Chemicals Market 2025-2029 - Discovery Report
8 "Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five Year Plan for
National Economic and Social Development"
202025 Annual Report of Zhejiang NHU Co. Ltd.
more than 10 kinds of PPA PPS PSU and other varieties with application value and
industrialization have been developed which are widely used in electronics automotive precision
instruments and other high-tech industries. Due to the higher price special engineering plastics
accounted for about 1.8% of the plastics market by value. In 2025 driven strongly by emerging
industries such as new energy vehicles AI and high-speed communications demand for special
engineering plastic materials remains robust. Chinese leading enterprises are rapidly achieving
import substitution in the mid-to-high-end fields through technological breakthroughs and
capacity expansion. China Chemical Information Center predicts that in the future China's market
demand for special engineering plastics will remain high growth with a compound annual growth
rate of about 7.2% from 2023 to 2028 and consumption will reach 0.246 million tons by 20289.The global PPS market is projected to grow from USD 1.620 billion in 2024 to approximately
USD 3.094 billion by 2032 with a compound annual growth rate (CAGR) 8.42% from 2025 to
203210.
APIs:
API is the pillar industry of the domestic pharmaceutical industry and one of the key industries
supported by the state. China and India are the main source countries of API production. The
advantages of API production are concentrated in emerging countries such as China and China
has become a major producer and exporter of bulk APIs and its production technology has
reached an international advanced level. In 2025 the total import and export value of China's
APIs reached USD 55.25 billion a year-on-year increase of 2.7%. Of this export value was USD
42.87 billion a slight year-on-year decrease of 0.3%; import value was USD 12.38 billion a
year-on-year increase of 14.5%. In 2025 China's export value of vitamin APIs reached USD 3.75
billion a year-on-year increase of 8.7%. In the first half of the year affected by the supply
disruption of vitamin A and E production at BASF China’ s exports of relevant products
embraced phased opportunities with export prices increasing significantly compared to 202411.
9China Chemical Information Center "China Chemical News"
10 https://www.credenceresearch.com/zh/report/polyphenylene-sulfide-pps-market-zh "Polyphenylene Sulfide (PPS) Market By
Type (Linear PPS Cured PPS Branched PPS); By Application (Automotive Electrical & Electronics Industrial Coatings Others);By Form (Granules Powder Sheets) - Growth Share Opportunities & Competitive Analysis 2024 - 2032”
11 China Chamber of Commerce for Import and Export of Medicines and Health Products "Analysis and Outlook on China's API
and Intermediates Import and Export Situation in 2025" https://www.cccmhpie.org.cn/qwfb
212025 Annual Report of Zhejiang NHU Co. Ltd.
III. Core Competitiveness Analysis
Since its establishment the Company has focused on fine chemicals and adhered to
innovation-driven development. Through decades of development it has gradually formed an
industrial system with nutrition aroma chemicals new polymer materials and APIs as its main
business. The market share of its main products is among the top tier in the world market. The
Company’s core competitiveness lies in its corporate culture R&D management talent and
brand.
1. Corporate Culture
Adhering to the corporate purpose of "Creating Wealth Elevating Employees and Benefit the
Society" core values of "New Harmony Union" business philosophy of "create wealth
balanced and sustainable" and enterprise spirit of " realism innovation high-quality and
efficiency" the Company innovates its operation and continuously improves management to
ensure the steady development.The "teacher culture" of "the wise are teachers the capable are teachers humbly behave carefully
educate people" is the culture of learning self-discipline take-charge culture and also the culture
of carefully educating people. The Company's culture of keeping pace with the times leads the
development and penetrates into the hearts of the people like spring rain nourishing every corner
of the enterprise. Under the guidance of the "teacher culture" the Company pursues high-quality
and sustainable development creates spiritual wealth and material wealth provides a platform
and opportunity for employees to develop and realize life value and contributes to social
innovation development green development and shared development.
222025 Annual Report of Zhejiang NHU Co. Ltd.
2. R&D
Adhering to the R&D philosophy of "demand-oriented internal integration and external
cooperation" the Company invested greatly in R&D activities. It has built an innovative R&D
system spanning from basic research engineering development process optimization to product
application development. With its focus on the development of common critical and
forward-looking technologies in the chemicals industry the Company has developed and
mastered a number of key technologies that have a strategic impact on economic development and
has promoted the transformation and upgrading of the industry. The Company cooperates closely
with famous research institutes and universities at home and abroad such as Zhejiang University
Chinese Academy of Sciences Jiangnan University China Agricultural University Zhejiang
University of Technology CysBio biotechnology company of Denmark and organizes and
utilizes global basic scientific research resources to jointly develop forward-looking studies and
application field research on chemicals. As the core of the Company’s technology innovation the
Company’s research institute has biomedical laboratories supercritical reaction laboratories
engineering equipment research centers and other laboratories equipped with 600M NMR with
cryoprobes and other world-leading scientific research instruments and equipment. Its
achievements of domestic and international leading technologies such as supercritical reaction
high vacuum distillation continuous high-pressure hydrogenation peroxidation and continuous
crystallization have made it a nationally recognized enterprise technology center national
post-doctoral scientific research workstation and national model academician and expert
workstation.During the reporting period the Company completed over 100 patent applications both
domestically and internationally continuously strengthening the patent protection network for its
core products. It also successfully passed the new national standard certification for the
intellectual property management system. The Company’s project "Development and
Industrialization of Integrated Manufacturing Technologies for High-Quality Solid Methionine"
was awarded the First Prize of the Science and Technology Progress Award by China Petroleum
and Chemical Industry Federation (CPCIF) in 2025.
232025 Annual Report of Zhejiang NHU Co. Ltd.
3. Production Management
Aiming for world-class manufacturing the company supports sustainable development through
the implementation of systems for quality assurance green and low-carbon practices and safety
and environmental protection. The Company has always been adhering to the production strategy
based on the principle of "production and sales coordination efficient operation excellent quality
and cost leadership" and the HSE guideline of "safety first green development full participation
and continuous improvement". The Company takes planning as the goal cost management as the
main line and maximizing company benefits as the principle for the allocation of resources.Through lean management and the cyclic operation of planning organization implementation
and control of the operation process the Company continuously strengthens the level of cost
control. Meanwhile it also steadily advances digital transformation and intelligent factory
construction and improves the overall level of digitalization and intelligence. Through process
reform efficient management and intelligent operation it promotes the continuous improvement
of management efficiency. In addition the Company is committed to the development of green
chemicals vigorously promotes clean production recyclable economy and 7S on-site
management and adopts an environmental governance model that focuses on source control and
final disposal. It is determined to take the road of sustainable development.
4. Process and Equipment
The Company values highly the effective combination of process and equipment. It has a process
and equipment research institute and cooperates with famous engineering companies and
scientific research institutes at home and abroad. Through the introduction digestion absorption
and re-innovation of advanced technologies the Company improves the overall level of its
process and equipment. The Company is dedicated to the R&D of process and equipment towards
larger scale better airtightness greater continuity and higher level of automation aiming to save
energy and reduce emissions to improve productivity and product quality to increase the intrinsic
safety of the production process to lower production costs and to improve the level of
automation. Currently the Company has developed various efficient reaction and separation
platforms including continuous reaction high vacuum distillation continuous extraction
continuous crystallization efficient filtration simulated moving bed separation microchannel and
242025 Annual Report of Zhejiang NHU Co. Ltd.
micro-interface reaction with respect to specific processes and remarkable results have been
achieved in continuous transformation of reaction vapor-liquid-solid heterogeneous reaction and
separation of air sensitive and heat sensitive materials through continuous improvement of
large-size equipment.
5. Talent
The Company has always been adhering to the management concept of "standardization and
efficiency" the employment concept of "valuing both integrity and talent and matching people
with right positions" and the guiding ideology of "building a highland of talents stimulating
organizational vitality and enhancing organizational performance" and has created a pioneering
innovative pragmatic and efficient talent team and a long-term stable and excellent management
team with a high sense of responsibility which promotes the Company’s sustained healthy and
rapid development. The Company continues to strengthen the construction of the talent supply
chain. It continuously improves the talent training system strengthens the training of
"management talents skilled talents international talents core technical talents and leadership
talents" systematically cultivates and reserves university graduates introduces various
professionals and continues to promote the cultivation of reserve cadres through programs such
as "Yuanhang" and "Qicheng". It also promotes the rotation training in zigzag and cross-sequence
patterns in order to promote the integration of management and profession and to build a team
with a balanced talent structure. During the reporting period the Company added 2 national-level
talents and was named "The Most Popular Global Employer" in the GUCDC 2025 ranking. Its
subsidiary Heilongjiang NHU Biotechnology Co. Ltd. was honored as a "National Advanced
Private Enterprise in Employment and Social Security" by the Ministry of Human Resources and
Social Security.
6. Brand
The Company follows the "integrity first" guideline and has always regarded serving customers
and creating industry value with customers as the goal of the Company. Through technological
innovation the Company continuously provides customers with safe and high-quality products as
well as efficient and satisfactory services. After years of development and accumulation the
Company has been awarded many honorary titles in the global fine chemical industry such as one
252025 Annual Report of Zhejiang NHU Co. Ltd.
of top ten feed additive brands in China one of the largest vitamin feed additive companies in
China and ranked among China's top 500 petroleum and chemical enterprises（ comprehensive）
and China's top 100 basic chemical raw material manufacturing enterprises. A good reputation in
the market has laid a solid foundation for the Company’s healthy and long-term development.Furthermore the Company has repeatedly received awards such as Zhejiang Province's Top 30
Listed Companies for Best Internal Control the "Best Investor Relations Award" and the "Best
Board Award" from mainstream media for listed companies. It has also been rated A in the MSCI
ESG rating gaining widespread favor from the market and investors.
7. Globalization
Globally oriented the Company has set up overseas subsidiaries in Hong Kong Singapore
Germany Mexico Brazil Japan Vietnam Turkey the United States and other regions or
countries and built overseas research institutes in Singapore and Japan to connect global
innovation resources providing comprehensive solutions in the fields of nutrition and health
daily care transportation environmental protection energy and other fields for customers in
more than 100 countries and regions around the world. We will strive to optimize the allocation of
resources at home and abroad help expand overseas markets and provide localized services and
continue to move toward "Global NHU".
8. Intelligent Manufacturing
The Company establishes the "one headquarters and multiple bases" management mode builds a
large-scale middle platform technical route with NHU characteristics. By building middle
platforms for business data and technology it strengthens data management awareness and the
supporting management platform system. This ensures smooth management processes between
the headquarters and manufacturing bases consistent operational data sources and supports
efficient business decision-making of enterprises. The Company constantly promotes automation
informatization and digitalization striving to create an intelligent manufacturing system with
NHU characteristics. It has built intelligent factories and promotes intelligent operation
management to achieve efficient flexible punctual lean production of high-quality products.This better meets and serves customer needs shaping new advantages for the industrial
competition.
262025 Annual Report of Zhejiang NHU Co. Ltd.
IV. Main Business Analysis
1. Introduction
Please refer to item “I. The Main Business of the Company During the Reporting Period” for details.
2. Revenue and Cost
(1) Composition of Operating Revenue
Unit: RMBYuan
Year 2025 Year 2024
Items % to operating % to operating YoY growth rate
Amount Amount
revenue revenue
Total operating 22251361880.58 100% 21609592228.45 100% 2.97%
revenue
By industry
Pharmaceutical 20037146404.03 90.05% 19841914590.63 91.82% 0.98%
chemicals
Others 2214215476.55 9.95% 1767677637.82 8.18% 25.26%
By product
Nutrition 14784368525.95 66.45% 15054507596.05 69.67% -1.79%
Aroma chemicals 3865554569.03 17.37% 3916222222.32 18.12% -1.29%
New materials 2114793685.42 9.50% 1676206286.32 7.76% 26.17%
Others 1486645100.18 6.68% 962656123.76 4.45% 54.43%
By region
Domestic sales 9320482853.62 41.89% 9556369337.03 44.22% -2.47%
Overseas sales 12930879026.96 58.11% 12053222891.42 55.78% 7.28%
By sales model
Direct selling 16971082948.15 76.27% 16478446865.46 76.26% 2.99%
Agent sales 5280278932.43 23.73% 5131145362.99 23.74% 2.91%
(2) Industries Products Regions and Sales Models That Account for More Than 10% of the Total Operating Revenue or
Operating Profit
□Applicable □ Not applicable
Unit: RMBYuan
Growth rate of
Items Gross Growth rate of Growth rate ofOperating revenue Operating cost operating
rate operating cost gross rate
revenue
By industry
Pharmaceutical
20037146404.03 10739406497.56 46.40% 0.98% -3.98% Increased by 2.77%
chemicals
By product
Nutrition 14784368525.95 7722060912.21 47.77% -1.79% -9.73% Increased by 4.59%
272025 Annual Report of Zhejiang NHU Co. Ltd.
Growth rate of
Items Gross Growth rate of Growth rate ofOperating revenue Operating cost operating
rate operating cost gross rate
revenue
Aroma
3865554569.03 1811221331.14 53.14% -1.29% -3.97% Increased by 1.30%
chemicals
By region
Decreased by
Domestic sales 9320482853.62 6056412152.55 35.02% -2.47% -0.95%
1.00%
Overseas sales 12930879026.96 6254395837.34 51.63% 7.28% -3.30% Increased by 5.29%
In case the statistical caliber of the Company’s main business data was adjusted during the reporting period the Company’s main
business data of the preceding period adjusted according to the caliber at the end of the reporting period shall be indicated
□ Applicable□ Not applicable
(3) Whether The Company’S Goods Sales Revenue Is Greater Than Service Income
□Yes □ No
By industry Items Unit Year 2025 Year 2024 YoY growth rate
Sales Tons 1057395.99 1001253.71 5.61%
Pharmaceutical
Production Tons 1135481.37 1020130.42 11.31%
chemicals
Stock Tons 165953.79 87868.42 88.87%
Sales Tons 58490.66 42921.25 36.27%
Others Production Tons 56545.21 43432.63 30.19%
Stock Tons 4831.46 6776.91 -28.71%
Remarks on reason for relevant data with absolute growth rate over 30%
□Applicable □ Not applicable
The YoY growth rates of stock of chemical industry rose mainly due to inventory buildup of products such as amino acids and
citral.The YoY growth rates of sales and production of other categories rose mainly due to increased market demand for new-materials
products.
(4) The Performance of Major Sales Contracts and Major Purchase Contracts Signed by the Company During the
Reporting Period
□Applicable□ Not applicable
(5) Composition of Operating Cost
By industry and product
Unit: RMBYuan
Year 2025 Year 2024
% to % to YoY growthBy industry Items
Amount operating Amount operating rate
cost cost
Pharmaceutical Cost of main
10714781114.15
chemicals business 87.28%
11126559379.6388.43%-3.70%
Cost of main
Others 1562114935.03 12.72% 1393190181.24 11.08%business 12.13%
282025 Annual Report of Zhejiang NHU Co. Ltd.
Unit: RMBYuan
Year 2025 Year 2024
YoY growth
By product Items % to operating % to
Amount Amount rate
cost operating cost
Cost of main
Nutrition 7697435528.80 62.70% 8496620424.57 67.53% -9.41%
business
Aroma Cost of main
1803127876.9214.69%1882262867.2914.96%-4.20%
chemicals business
New Cost of main
1489466307.3112.13%1308611295.4110.40%13.82%
materials business
Cost of main
Others 1286866336.15 10.48% 832254973.60 6.62% 54.62%
business
(6) Whether the Consolidation Scope Has Changed During the Reporting Period
□Yes □ No
Name of companies Methods of equity changes Timing of equity changes
Deregistered after the absorption
Shandong NHU Vitamins Co. Ltd. January 1 2025
merger
Zhejiang NHU Holdings Co. Ltd. Investment and establishment April 15 2025
NHU BESLENME GIDA SANAYi VE TiCARET
Investment and establishment January 17 2025
LiMiTED SIRKETI
NHU North America LLC Investment and establishment January 2 2025
(7) Significant Changes or Adjustments to the Company’s Business Products or Services During the Reporting Period
□Applicable□ Not applicable
(8) Major Customers and Major Suppliers
Major customers
Total sales amount (yuan) of the top 5 customers 1800707280.05
Proportion of the total sales amount of the top 5 customers to
8.10%
the annual total sales
Proportion of related-party sales within the sales amount of the
0.00%
top 5 customers to the annual total sales
Top 5 customers
Proportion to the annual total
No. Customers Sales amount (yuan)
sales
1 Client A 625316681.59 2.81%
2 Client B 361789583.27 1.63%
3 Client C 303853217.27 1.37%
292025 Annual Report of Zhejiang NHU Co. Ltd.
Proportion to the annual total
No. Customers Sales amount (yuan)
sales
4 Client D 261749213.51 1.18%
5 Client E 247998584.41 1.11%
Total -- 1800707280.05 8.10%
Remarks on other information of major customers
□ Applicable□ Not applicable
Major suppliers
Total purchase amount (yuan) of the top 5 suppliers 1482672481.33
Proportion of the total purchase amount of the top 5 customers
18.72%
to the annual total purchases
Proportion of related-party purchases within the purchase
0.00%
amount of the top 5 customers to the annual total purchases
Top 5 suppliers
Proportion to the annual total
No. Suppliers Purchase amount (yuan)
purchases
1 Supplier A 425429339.66 5.37%
2 Supplier B 321602789.55 4.06%
3 Supplier C 267711185.30 3.38%
4 Supplier D 257249642.99 3.25%
5 Supplier E 210679523.83 2.66%
Total -- 1482672481.33 18.72%
Remarks on other information of major suppliers
□ Applicable□ Not applicable
During the reporting period the Company's trading business revenue accounted for more than 10% of operating revenue
□ Applicable□ Not applicable
3. Expenses
Unit: RMBYuan
Items Remarks on significantYear 2025 Year 2024 YoY growth rate
changes
Selling expenses 186625106.77 190298278.24 -1.93%
Administrative
656845768.83595894541.2610.23%
expenses
This was mainly caused by
exchange rate fluctuations
Financial expenses -14746421.76 178047841.65 -108.28% during the reporting period
which led to an increase in
foreign exchange gains.R&D expenses 1099437900.40 1036161740.50 6.11%
302025 Annual Report of Zhejiang NHU Co. Ltd.
4. R&D Input
□Applicable □ Not applicable
Expected effect on the
Main R&D projects Purposes Progress Targets to be fulfilled Company’s future
development
Project completion.It is expected to
Through research on
establish mature
continuous-process
continuous-reaction
equipment for
To conduct research on distillation and other
chemical unit To build stirred-tank
certain unit reaction workshop production
operations such as cascade reactor
Research on the operations and lines significantly
condensation and platforms and tubular
development and equipment involved in enhancing the level of
oxidation new reactor platforms
application of modular the Company's existing continuous automation.processes have been suitable for verification
technology for and to-be-launched This will reduce costs
developed to resolve at various scales from
continuous-process products in order to improve efficiency
issues of batch model test to
equipment improve the maturity stabilize production
operations achieving pilot-scale
of unit reactions and capacity and
energy saving experiments.production efficiency. strengthen the
consumption reduction
Company's core
quality improvement
competitiveness and
and efficiency
market advantages.enhancement.Project completion.The development of
formulations for It is expected to
vitamin A and AD3 To develop a series of enhance the Company's
To develop products without high-safety technological
ethoxyquin-free ethoxyquin and for low-solvent-residue capabilities in
high-safety fat-soluble carotenoid products vitamin and carotenoid formulation
vitamin and carotenoid without ethoxyquin formulations and development and
Research on the
formulations and with low solvent establish a downstream
development and
investigate their residues has been comprehensive applications
application of
application effects and completed. The application evaluation continuously provide
high-safety nutrient
mechanisms of action Company has system to provide the customers with
products
and enhance product established a feed feed and animal efficient safe and
stability in feed and processing platform husbandry industry sustainable solutions
their value for animal and a breeding trial with safe and efficient and support the
use. base and completed products and technical high-quality
the bioavailability support. development of the
evaluation of the industry.vitamin A product in
piglets.To optimize the Project completion. To establish a The Company has
expression of key The Company has comprehensive established a full-chain
functional elements established an vitamins R&D and R&D system and core
Construction of
and reconstruct the industrialization industrialization technology platform
microbial strains for
chassis system by platform around platform forming a making breakthroughs
the complete
using metabolic vitamin B5 and other complete system from in multiple key product
biosynthesis of typical
engineering and nutritional products pilot-scale experiments processes. It is
B vitamins
synthetic biology and deployed a green to large-scale expected to realize
fermentation process
techniques in order to biomanufacturing production; industrialization
development and
develop genetically system. The Company continuously enrich the implementation and
industrialization
engineered strains has built a pilot-scale product matrix significantly enhance
capable of efficiently fermentation and including vitamin B5 the Company's
synthesizing target extraction line in improve green technical barriers and
312025 Annual Report of Zhejiang NHU Co. Ltd.
Expected effect on the
Main R&D projects Purposes Progress Targets to be fulfilled Company’s future
development
vitamins. Combined Shangyu finishing manufacturing production efficiency.with multi-parameter process validation for standards and Realizing green
fermentation process multiple products. It strengthen the market biomanufacturing of
optimization this aims has also built a competitiveness and vitamins plays a key
to drive the scale-up 1000-ton production industrialization role in the Company’s
production of the line in Heilongjiang capacity of core ability to seize the
engineered strains. achieving nutritional products. international
industrial-scale technological high
application of various ground and in China’s
product specifications construction of a new
such as vitamin B5 and pillar of a green and
vitamin B12. environmentally
friendly industrial
system.To investigate the
application of catalysts
Project completion. in the reaction system
The Company has
The Company has and define a
To optimize hydrogen completed the
completed the scale-up side-reaction control
cyanide production and development of key
commissioning of the scheme; advance
separation processes equipment and
hydrogenation process ligand technology
Research on innovative equipment selection production operation
for synthesizing innovation and
adiponitrile synthesis and pilot-scale control schemes for the
hexamethylenediamine pilot-scale synthesis to
processes and experiments for the adiponitrile synthesis
from adiponitrile. provide data support
industrialization entire process by process ensuring
Based on the for mass production;
technology developing highly stable and continuous
pilot-scale process the carry out unit
applications efficient and stable unit operation. The
Company has designed benchmarking and
catalysts and resolving product quality is
a mass production commissioning
their recovery and expected to reach
process package for equipment validation
application challenges. internationally
adiponitrile/hexamethy and talent development
advanced levels.lenediamine. to ensure continuous
stable operation of the
unit.Project completion. To enhance the
The Company has reliability of process
conducted process and routes and the quality
quality research for of drugs by developing
To promote the
pharmaceutical-grade various
Company's research It is expected to
vitamin B6 and other pharmaceutical-grade
and development of enhance the Company's
Research and products and product synthesis
vitamin products and industry position in the
development on established complete processes thereby
active pharmaceutical active pharmaceutical
high-specification pharmaceutical reducing production
ingredients (APIs) ingredients (APIs)
active pharmaceutical research costs and pollution
reduce production sector especially its
ingredients (APIs) documentation. It has from process routes. To
costs and improve the competitiveness in the
products also advanced achieve controllable
specifications of active high-specification
follow-up research on pharmaceutical-grade
pharmaceutical vitamins market.coenzyme Q10 and product quality
ingredients (APIs).moxifloxacin environmental
hydrochloride friendliness and
completing the related comprehensive cost
research work. advantages.
322025 Annual Report of Zhejiang NHU Co. Ltd.
Expected effect on the
Main R&D projects Purposes Progress Targets to be fulfilled Company’s future
development
Project completion.The Company has
completed the It is expected to
development of provide comprehensive
To establish a
analytical testing analysis and testing
To optimize resource comprehensive service
methods during the services for the
allocation and service platform that integrates
R&D of multiple new Company's product
processes provide high-level analytical
Research and and existing products technology
more efficient and testing method
application of analysis structural studies of innovations promoting
precise analytical development and
and testing reaction intermediates a closer integration of
testing services to the technical research to
technologies in fine and impurities and the R&D and production
group's subsidiaries provide strong
chemicals separation and with analytical
and manufacturing technical support for
purification of trace research and
bases ensuring R&D the Company's internal
impurities in raw improving the
and production quality. and external R&D
materials or products; efficiency of new
innovation.completed on-site product development
verification of the and process innovation.CNAS-accredited
management system.To establish four
To systematically
specialized technical
research on the The Company has It is expected to
platforms—crystallizat
influencing factors of systematically studied achieve product
ion distillation
each product in the the fundamental separation techniques
chromatography and
Research on the separation process find properties of the and quality
membrane
development and out the optimal Company's products in improvement through
separation—with
application of efficient separation process the separation process the innovation and
capabilities in process
separation processes parameter realize the carried out R&D development of the
development and
and coupled process controllability of the coupling and separation process so
physical-property data
intensification separation process and validation of separation as to meet the needs of
collection and the
technologies product quality and processes for major different customers and
ability to work with the
solve actual production products and improve the market
General Engineer's
problems through performed preliminary competitiveness of
Office on process
production debugging scale-up design. products.coupling and
in the workshop.intensification design.The Company has To promote the It is expected to
To establish a safety
summarized testing standardization of enhance the Company's
and environmental
work on processes process safety and fire inherent safety level
assessment laboratory
related to fire and and explosion risk and effectively prevent
which is equipped with
explosion risks such as assessment; improve accidents from
calorimetry equipment
high temperature high basic physicochemical occurring. By
(DSC ARC RC1e
pressure and pure property data and establishing an
etc.) and analysts; To
Research on enhancing oxygen and capacity building; environmental
conduct kinetic and
safety and preliminarily clarified conduct wastewater laboratory and
thermodynamic
environmental standardized treatment research introducing
analysis on related
protection technologies procedures; completed tackle multiple assimilating and
materials and chemical
for fine chemicals research on wastewater environmental researching
reaction processes and
treatment technologies protection challenges environmental
when necessary carry
related to new promote the protection
out scale-up
environmental industrialization of technologies the
commissioning
protection results and establish a Company's
procedures on
technologies and research platform for environmental
corresponding
advanced the exhaust gas and solid protection technologies
processes.construction of the waste treatment. have been significantly
332025 Annual Report of Zhejiang NHU Co. Ltd.
Expected effect on the
Main R&D projects Purposes Progress Targets to be fulfilled Company’s future
development
environmental enhanced.protection platform
research project.The Company has
To further improve the completed research and
fine chemicals design for multiple
industrialization reactions reactors
To establish a After the relevant
system by building separations and
specialized equipment modules have been
four major modular equipment and product
scale-up research established and
research platforms for quality and yields have
platform and develop perfected the
reaction separation reached lab-scale or
Research and specialized equipment Company is expected
CFD simulation and existing workshop
application of process scale-up methods to create considerable
material corrosion levels. It has also
engineering design and thereby improving economic benefits by
providing customized completed simulation
equipment technology process development improving R&D
systematic support for optimization of key
efficiency and reducing efficiency and
process development equipment and
process costs and developing
and equipment conducted research on
process development cost-effective process
scale-up and corrosion mechanisms
costs. routes and equipment.enhancing engineering in multi-component
and industrialization systems and
capabilities. recommendations for
material selection.The Company has
integrated process It is expected to reduce
To develop and
flows for some To complete lab-scale the comprehensive
optimize chemical
products with analysis process development costs of multiple
intermediate synthesis
of mechanisms and and research for products reduce the
processes improving
by-products completed. multiple products difficulty of developing
reaction selectivity
Fine chemicals and In-house development process safety risk new products and
reducing production
material intermediate and evaluation of key assessments value and enhance the Company's
costs and pollutant
process technology catalysts have been feasibility studies for competitiveness in
emissions and
R&D achieved along with process scale-up and multiple fields such as
enhancing process
reaction safety risk provide guidance and pharmaceuticals
stability and reliability
analysis. Feasibility optimization for the pesticides aroma
promote green and
and economic establishment of chemicals nutritional
efficient
assessment for process scaled-up processes. products and
industrialization.scale-up have also been polymers.conducted.To develop a The Company has To accelerate the It is expected to
continuous developed a continuous transformation of eliminate the use of
Demonstration of the hydrogenation process hydrogenation catalyst results complete the toxic agents improve
application of green and catalysts for the for alkynol design of the product quality and
high-efficiency selective intermediate continuous stability and enhance
continuous catalytic hydrogenation of hydrogenation with hydrogenation process production efficiency
hydrogenation alkynol the key non-toxic additives. package and reactor for and the safety of
technology intermediate for The catalyst achieves alkynol build a production operations
products such as high reaction hydrogenation catalyst through the
linalool and vitamin A. conversion and production line and development and
342025 Annual Report of Zhejiang NHU Co. Ltd.
Expected effect on the
Main R&D projects Purposes Progress Targets to be fulfilled Company’s future
development
selectivity with an realize coordinated application of catalytic
extremely low loading implementation of and other technologies.of noble metals technology and
ensuring long-term industrialization.stable operation. This
significantly improves
product quality and
reduces environmental
pollution.Based on lab-scale
To complete the
research the Company
To select cassava process technology
has completed the It is expected to
starch with a stable R&D for formulating
formulation and address raw material
supply and uniform colorants fat-soluble
process scale-up design supply and cost
quality and develop a vitamins and other
and pilot-scale challenges expand
novel emulsified starch formulated products
commissioning product application
Development and through new process using cassava starch as
obtained vitamin E and scope stabilize product
industrialization of R&D to replace waxy the raw material. The
pigment preparations quality and enhance
novel emulsified starch corn starch in order to quality indicators of
formulated with the Company's ability
stabilize production the resulting
emulsified starch to independently
reduce costs and downstream products
produced by different secure raw materials
improve product are expected to match
processes achieving and its market
quality and application or surpass those of
technical and quality competitiveness.compatibility. formulations based on
indicators equivalent to
waxy corn starch.the laboratory scale.The Company has
completed the
To focus on pilot-scale To complete pilot-scale
product's market
and scale-up studies of commissioning studies
research project
MKB and other for multiple products It is expected to
initiation analysis and
chemicals based on including MKB enhance the Company's
project compliance
the completion of conduct studies on the competitiveness in
Pilot-scale process review; established a
lab-scale processes value and feasibility of multiple fields such as
technology R&D for cross-departmental
carry out feasibility process scale-up guide pharmaceuticals
fine chemicals and project team; improved
studies for process and optimize the pesticides aroma
materials products the lab-scale process;
scale-up studies on establishment of chemicals nutritional
and advanced
adaptability to scaled-up processes products and
pilot-scale
industrial production forming independently polymers.preparations
and process economic developed
equipment
assessments. technologies.commissioning and all
pre-startup activities.To address problems The Company has
such as instability of completed pilot-scale
engineered strains and process research on the It is expected to
Construction and low potency of fermentation and overcome technical
application fermentation products extraction of vitamin To develop multiple bottlenecks in vitamin
demonstration of a in vitamin B12 and related value-added manufacturing
green biomanufacturing by compounds and technologies for enhance product
biomanufacturing developing green conducted key vitamin A and other value?added and
system for functional biomanufacturing and technology research for fat-soluble products. production capacity
vitamins high?value application the value enhancement and promote industrial
technologies for of ultrafine upgrading.vitamins and high-stability
constructing an vitamin-related
352025 Annual Report of Zhejiang NHU Co. Ltd.
Expected effect on the
Main R&D projects Purposes Progress Targets to be fulfilled Company’s future
development
intelligent green formulation products.biomanufacturing
demonstration
production line.To conduct research on
It is expected to
new process
enhance the
technologies for The Company has
To optimize the technological R&D
producing completed vitamin E
processes for products pilot-scale testing and
pharmaceutical-grade continuous-extraction
such as vitamins scale-up/industrializati
food-grade and data simulation and
pigments and modified on commissioning
feed-grade nutrient lab-scale process
starch increase output capabilities of the
Research on processing products; to achieve research design of a
and yields reduce nutrient product series;
technology for nutrient cost reduction process package for
consumption and the improve product
series products efficiency gains and modified-starch
generation of waste quality; increase
quality improvements nutrients and
gas wastewater and efficiency and overall
across nutrient industrial-scale
solid waste and competitiveness; and
products of different commissioning of
improve product create value for human
grades by integrating process improvements
quality. health human
the introduction and such as astaxanthin.nutrition and animal
upgrading of new
nutrition.process equipment.To establish a To specialize in
It is expected to
membrane separation researching
resolve difficult issues
process research pressure-driven
The Company has in production such as
platform and cultivate membrane and
carried out information refining and
a professional bipolar-membrane
collection on purification; achieve
membrane separation electrodialysis
Development and electrodialysis resource reuse and the
R&D team in order to separation coupling
application research of separation technology production of
meet the Company's technologies to solve
electrodialysis and built the team and high-purity products;
needs for improving difficult issues such as
bipolar membrane investigated the strengthen technical
and researching product refining and
technologies technical routes and support and team
electrodialysis purification in actual
preliminary separation capabilities; and help
concentration production to provide
route development of the Company reduce
desalination refining projects with
multiple projects. costs increase
and purification high-purity products
efficiency and enhance
processes in product and to enable resource
core competitiveness.manufacturing. recovery and reuse.It is expected to realize
To develop the resource utilization
enzyme?hydrolyzed The Company has To develop of by-products
protein products with conducted application enzymatically produce high-value
high biological potency evaluations for the hydrolyzed protein enzymatically
Research on the
using by?products from lab-scale developed products with high hydrolyzed protein
development and
the Company's existing processes developed biological value and products improve
application of high
production lines as raw rapid detection establish a nutritional testing and nutrition
biological-efficacy
materials and evaluate technologies and value database for databases expand
nutrients
the products' established an animal enzymatically product areas and help
application effects in nutrition analysis and hydrolyzed protein the Company improve
animal feed through testing platform. products. quality and efficiency
animal rearing trials. and enhance its
industry influence.
362025 Annual Report of Zhejiang NHU Co. Ltd.
Expected effect on the
Main R&D projects Purposes Progress Targets to be fulfilled Company’s future
development
It is expected to
To advance the R&D finalize process and
of products such as quality research for
vitamin E calcium related pharmaceutical
succinate. To develop The Company has products enhance the
To complete lab-scale
and optimize multiple completed the intrinsic quality level
process R&D for the
R&D of synthesis pharmaceutical-grade establishment of of those products
series of products of
technologies for product synthesis production routes and promote the successful
each active
pharmaceuticals and processes to improve initial process commercialization of
pharmaceutical
intermediates for the the reliability of optimization for active pharmaceutical
ingredient (APIs) or its
silver economy process routes enhance vitamin E calcium ingredients (APIs)
intermediates in the
drug quality reduce succinate and other across different
project.production costs and pharmaceuticals. markets and
reduce waste gas strengthen the
wastewater and solid Company's industry
waste. position in the API
sector.Details of R&D personnel
Items Year 2025 Year 2024 Percentage of change
Number of R&D personnel
28412867-0.91%
(persons)
% to total employees 24.69% 25.22% Decreased by 0.53%
Educational background structure
Technical secondary school
94119-21.01%
high school and below
Associate degree 311 346 -10.12%
Bachelor’s degree 1394 1410 -1.13%
Master’s degree 956 912 4.82%
Doctoral degree 86 80 7.50%
Total 2841 2867 -0.91%
Age structure
Below 30 years old 1223 1315 -7.00%
30-40 years old 1226 1138 7.73%
Over 40 years old 392 414 -5.31%
Total 2841 2867 -0.91%
Details of R&D input
Items Year 2025 Year 2024 Percentage of change
R&D input amount (yuan) 1099437900.40 1036161740.50 6.11%
% to total operating revenue 4.94% 4.79% Increased by 0.15%
Capitalized amount (yuan) 0.00 0.00 0.00%
% to total R&D input 0.00% 0.00% 0.00%
Reason for significant changes in the structure of the Company’s R&D personnel and the effect
□ Applicable□ Not applicable
Reason for significant changes in the proportion of total R&D input to operating revenue compared to the preceding period
□ Applicable□ Not applicable
372025 Annual Report of Zhejiang NHU Co. Ltd.
Reason for significant changes in the capitalization rate of R&D input and remarks on the reasonability
□ Applicable□ Not applicable
5. Cash Flows
Unit: RMBYuan
Items Year 2025 Year 2024 YoY growth rate
Subtotal of cash inflows from
operating activities 22892406248.33
19830149069.0815.44%
Subtotal of cash outflows from
operating activities 14094974907.41
12757084885.7510.49%
Net cash flows from operating
8797431340.92 7073064183.33 24.38%activities
Subtotal of cash inflows from
345665250.33588.85%
investing activities 2381122672.91
Subtotal of cash outflows from
4119527931.567.38%
investing activities 4423653134.84
Net cash flows from investing
-2042530461.93 -3773862681.23 45.88%activities
Subtotal of cash inflows from
financing activities 3435574243.40
4441283711.80-22.64%
Subtotal of cash outflows from
6704300710.5818.03%
financing activities 7913404895.79
Net cash flows from financing
-4477830652.39 -2263016998.78 -97.87%activities
Net increase of cash and cash
2298254822.541074882251.17113.81%
equivalents
Remarks on main factors leading to the significant changes in growth rates of relevant data
□Applicable □ Not applicable
The YoY growth rate of net cash flows from operating activities was 24.38% which was mainly due to increase of sales revenue
during the reporting period leading to increase of collection of relevant payments for goods.The YoY growth rate of subtotal of cash inflows from investing activities was 588.85% which was mainly due to the maturity and
redemption of large-denomination certificates of deposit during the reporting period.The YoY growth rate of net cash flows from investing activities was 45.88% which was mainly due to the maturity and
redemption of large-denomination certificates of deposit during the reporting period.The YoY growth rate of net cash flows from financing activities was -97.87% which was mainly due to an increase in cash
dividends distributed to shareholders during the reporting period.The YoY growth rate of net increase of cash and cash equivalents was 113.81% which was mainly due to increase of sales
revenue during the reporting period leading to increase of collection of relevant payments for goods.
382025 Annual Report of Zhejiang NHU Co. Ltd.
Remarks on reason for significant difference between net cash flows from operating activities during the reporting period and net
profit of the current period
□ Applicable□ Not applicable
V. Non-Main Business Analysis
□Applicable □ Not applicable
Unit: RMBYuan
Whether
Items % to total profitAmount Reason for balance has
before tax
continuity
It was mainly due to an increase in
Investment income 140560163.60 1.79% investment income from associates during No
the reporting period.Gains on changes in fair It was mainly due to changes in fair value
value -53391170.13 -0.68% of forward foreign exchange settlement No
(or less: losses) during the reporting period.It was mainly due to impairment losses
Assets impairment loss arising from provisions for inventory
-235426877.98 -3.00% No
(or less: losses) write-downs and asset impairment made
during the reporting period.It was mainly attributable to the sale of
Non-operating revenue 18284909.92 0.23% carbon emission rights during the reporting No
period.It was mainly due to gains on retirement of
Non-operating
22811106.04 0.29% assets and donation expenditures during the No
expenditures
reporting period.It was mainly due to a decrease in accounts
Credit impairment loss receivable during the reporting period
12879377.53 0.16% No
(or less: losses) which led to a reduction in the provision for
bad debts.Gains on asset disposal It was mainly due to the disposal of fixed
-1494406.52 -0.02% No
(or less: losses) assets during the reporting period.It was mainly due to government grants
Other income 252983451.94 3.22% No
received during the reporting period.
392025 Annual Report of Zhejiang NHU Co. Ltd.
VI. Assets and Liabilities Analysis
1. Significant Changes in Asset Composition
Unit: RMBYuan
December 31 2025 January 1 2025 Remarks
Items on% to total % to total Percentage of change
Amount Amount significan
assets assets t changes
Cash and bank
7966270131.17 17.47% 7936504805.65 18.46% Decreased by 0.99%
balances
Accounts 3331434677.27 7.30% 3653676104.37 8.50% Decreased by 1.20%
receivable
Inventories 4648749467.43 10.19% 4090096841.96 9.51% Increased by 0.68%
Long-term
equity 965350549.43 2.12% 865262148.36 2.01% Increased by 0.11%
investments
Fixed assets 20298898673.14 44.51% 21915984823.43 50.98% Decreased by 6.47%
Construction
745117350.86 1.63% 571610643.68 1.33% Increased by 0.30%
in progress
Right-of-use
9116717.87 0.02% 13222869.09 0.03% Decreased by 0.01%
assets
Short-term
675172682.37 1.48% 1162512239.04 2.70% Decreased by 1.22%
borrowings
Contract
294819090.20 0.65% 237013669.77 0.55% Increased by 0.10%
liabilities
Long-term
4187178569.02 9.18% 5327243721.25 12.39% Decreased by 3.21%
borrowings
Lease
2500183.66 0.01% 3584791.02 0.01% Unchanged
liabilities
The proportion of foreign assets to total assets is comparatively high
□ Applicable□ Not applicable
2. Assets and Liabilities at Fair Value
□Applicable □ Not applicable
Unit: RMBYuan
Provision Amount
Accumulated for sold
Gains on changes Amount purchased
changes in fair impairment during Other
Items Opening balance in fair value in the during the reporting Closing balance
value included in made in the changes
current period period
equity the current reporting
period period
Financial assets
1. Held-for-trading
financial assets
(derivative 5061842.34 2150000000.00 2155061842.34
financial assets
excluded)
402025 Annual Report of Zhejiang NHU Co. Ltd.
Provision Amount
Accumulated for sold
Gains on changes Amount purchased
changes in fair impairment during Other
Items Opening balance in fair value in the during the reporting Closing balance
value included in made in the changes
current period period
equity the current reporting
period period
2. Derivative
745816.3412467433.8713213250.21
financial assets
Subtotal of
745816.3412467433.875061842.342150000000.002168275092.55
financial assets
Total 745816.34 12467433.87 5061842.34 2150000000.00 2168275092.55
Financial liabilities 11151258.46 -11151258.46 0.00
Remarks on other changes: None
Whether the Company has significant changes in the measurement attributes of its main assets during the reporting period
□ Yes□ No
3、Restrictions on Assets as of the End of the Reporting Period
Unit: RMBYuan
Items Closing book balance Closing carrying amount Type of restriction Reasons for restrictions
38900815.38 38900815.38 Pledged Deposit for bank acceptance
1714764.00 1714764.00 Pledged Deposit for letter of guarantee
4117750.00 4117750.00 Pledged Deposit for customs duty
370073.49 370073.49 Pledged Deposit for letters of credit
Cash and bank Security deposits for tap water
balances 1063853.85 1063853.85 Pledged fees
25500.00 25500.00 Pledged Deposit for ETC
221221.57 221221.57 Pledged Deposit for emission rights
Long-suspended account
4774.98 4774.98 Pledged
balance
Receivables Establish bank acceptance bill
135353157.67 135353157.67 Pledged
financing pledge
Mortgaged for bank
Fixed assets 102070345.08 79042144.12 Mortgage
borrowings
Mortgaged for bank
Intangible assets 10794997.29 10794997.29 Mortgage
borrowings
Total 294637253.31 271609052.35
412025 Annual Report of Zhejiang NHU Co. Ltd.
VII. Investment Status Analysis
1. Overall Information
□Applicable □ Not applicable
Investments during the reporting period Investments of the preceding period
Percentage of change
(yuan) (yuan)
683086983.941555952289.57-56.10%
2. Significant Equity Investments Made During the Reporting Period
□Applicable□ Not applicable
3. Significant Non-Equity Investments in Progress During the Reporting Period
□Applicable□ Not applicable
4. Investments in Financial Assets
(1) Investments in Securities
□Applicable□ Not applicable
There is no investment in securities during the reporting period.
(2) Investments in Derivatives
□Applicable □ Not applicable
1) Derivative Investments for Hedge Purposes During the Reporting Period
□Applicable □ Not applicable
Unit: ten thousand yuan
Proportion
Gains on of
Accumulated Amount
changes in Amount sold investments
Categories of Initial changes in purchased
Opening fair value during the Closing to net assets
derivative investment fair value during the
balance in the reporting balance at the end of
investments amount included in reporting
current period the
equity period
period reporting
period
Forward
32201.5532201.55855.340.001087803.66993921.36126083.853.84%
contracts
Structured
forward 48381.10 48381.10 -6700.64 0.00 184823.50 198404.10 34800.50 1.06%
contracts
Total 80582.65 80582.65 -5845.30 0.00 1272627.16 1192325.46 160884.35 4.90%
422025 Annual Report of Zhejiang NHU Co. Ltd.
Remarks on
whether there
were significant
changes in the
accounting
policies and
specific
The Company accounts for the hedge business conducted in accordance with the relevant provisions and guidelines of
accounting
the Ministry of Finance's "CASBE 22 — Financial Instruments: Recognition and Measurement" "CASBE 23 —
principles for
Transfer of Financial Assets" and "CASBE 37 — Presentation of Financial Instruments". There were no significant
the Company’s
changes in accounting policies and specific principles of accounting compared with the previous reporting period.hedging
business during
the reporting
period
compared to the
previous
reporting period
In order to reduce the impact of exchange rate fluctuations on the Company's operating results the Company carried
Explanation of
out foreign exchange hedging business in accordance with a certain percentage of its export business with business
actual profit or
varieties mainly including forward exchange settlement and other foreign exchange derivative products all of which
loss for the
were within the expected scale of sales business and the actual gain or loss on derivatives at the end of the reporting
reporting period
period was -73.0784 million yuan.Explanation of
The Company conducts foreign exchange hedge business to reduce exchange rate risk arising from exchange rate
hedge
fluctuations aiming to reduce foreign exchange losses and effectively control operating risks.effectiveness
Fund source Own funds.Remarks on risk
analysis and
control
measures for
holding
derivative
positions during
In order to prevent exchange rate risks the Company and its subsidiaries carried out derivative instrument businesses.the reporting
The Company and its subsidiaries strictly implemented the Management Measures on Foreign Exchange Hedging
period
Business.(including but
not limited to
market risk
liquidity risk
credit risk
operational risk
legal risk etc.)
In the case of
changes in
market prices or
fair value of
invested
derivatives
during the Floating loss on fair value of derivatives amounted to 58.4530 million yuan at the end of the reporting period.reporting
period the
analysis on fair
value of
derivatives shall
disclose the
432025 Annual Report of Zhejiang NHU Co. Ltd.
specific
methods for
their uses and
the setting of
relevant
assumptions and
parameters
Conditions of
involved
None
lawsuits (if
applicable)
Disclosure date
of the Board of
Directors
announcement
April 15 2025
for the approval
of derivatives
investment (if
any)
Disclosure date
of the General
Meeting of
Shareholders
announcement Not applicable
for the approval
of derivatives
investment (if
any)
2) Derivative Investments for Speculative Purposes During the Reporting Period
□Applicable□ Not applicable
The Company had no derivative investments for speculative purposes during the reporting period.VIII. Sale of Major Assets and Equities
1. Sale of MajorAssets
□Applicable□ Not applicable
There is no sale of major assets during the reporting period.
2. Significant Sale of Equities
□Applicable□ Not applicable
IX. Major Entities Controlled or Invested by the Company
□Applicable □ Not applicable
Major subsidiaries and investees with influence on net profit of the Company over 10%
442025 Annual Report of Zhejiang NHU Co. Ltd.
Unit: ten thousand yuan
Name of Main Registered Operating Operating
Categories Total assets Net assets Net profit
companies businesses capital revenue profit
Shandong Production
NHU and sales
Subsidiary 110000 1515183.44 1371144.47 765559.69 349836.23 297206.39
Amino-acids of
Co. Ltd. methionine
Shandong
NHU Fine Production
Chemical and sales
Subsidiary 90000 536921.86 402979.11 394197.22 196546.04 181135.34
Science and of feed
Technology additives
Co. Ltd.Shandong Production
NHU and sales
Subsidiary 59000 645823.86 567647.46 387607.06 171571.77 148311.59
Pharmaceutical of
Co. Ltd. fragrances
Details of the acquisition and disposal of subsidiaries during the reporting period
□Applicable □ Not applicable
Method for acquisition and disposal of Effect on the overall production
Name of companies
subsidiaries during the reporting period operation and performance
No significant effect at the beginning of
Shandong NHU Vitamins Co. Ltd. Deregistered after the absorption merger
the period.No significant effect at the beginning of
Zhejiang NHU Holdings Co. Ltd. Investment and establishment
the period.NHU BESLENME GIDA SANAYi VE No significant effect at the beginning of
Investment and establishment
TiCARET LiMiTED SIRKETI the period.No significant effect at the beginning of
NHU North America LLC Investment and establishment
the period.Remarks on major holding investees
Not applicable
X. Structured Entities Controlled by the Company
□Applicable□ Not applicable
XI. Outlook for the Future Development of the Company
1. The Company’s Development Strategy
The Company will consistently adhere to the development strategy of integration serialization and synergy adhere to the strategic
platforms of "Chemical+" and "Biology+" improve the application research and application service capabilities and focus on
main businesses including nutrition aroma chemicals and new polymer materials and APIs insist on innovation-driven develop
various functional chemicals strengthen the construction of technology platforms and industrial platforms and strengthen the
introduction and cooperation of advanced equipment. Relying on modern manufacturing bases respectively in Zhejiang Xinchang
452025 Annual Report of Zhejiang NHU Co. Ltd.
Zhejiang Shangyu Shandong Weifang Heilongjiang Suihua and Tianjin Binhai New Area the Company will work to realize the
extension of the industrial chain and promote the sustainable and high-quality development. Meanwhile it will actively seek
opportunities for its functional chemicals in strategic emerging industries such as the plant protection industry new energy
industry energy conservation and environmental protection industry and information industry.
(1) It will continue to expand and strengthen the nutrition business. Animal nutrition: Guided by the principles of "cost leadership
market leadership innovation-driven service first and integrated production-supply-sales collaboration" the Company is
committed to becoming a globally leading supplier of animal nutrition and health products. Human nutrition: Guided by the
principles of "emphasizing quality serving customers strengthening marketing and enhancing the company's brand influence"
the Company is committed to becoming a globally leading supplier of human nutrition and health solutions. At the same time the
Company focuses on the methionine business rapidly and effectively strengthening and expanding it. By enhancing
competitiveness and improving management systems the Company aims to build a world-leading integrated methionine
manufacturing base.
(2) It will develop wider and deeper in the aroma chemicals business. Guided by the principles of "integration serialization and
scaling" the Company conducts research and development centered on fragrances daily chemical products pharmaceutical
intermediates and other fine chemicals. It promotes the successful implementation of new fragrance base projects continuously
introduces new fragrance varieties and achieves product functionality and differentiation thereby consistently enhancing the core
competitiveness of its products. The goal is to become a world-class aroma chemicals and cosmetic ingredient company.
(3) It will continue its development in the new material business. Guided by cost leadership the Company adheres to integration
and serialization development ideas. By integrating resources and fostering open cooperation we will focus on high molecular
polymers and key intermediates striving to develop major products successfully while synergistically expanding downstream
applications. Based on "Chemical+" and "Biology+" we aim to establish the new material industry into an important pillar
industry of the Company positioning ourselves as a rising force in the new material industry.
(4) It will focus on making more special and refined active pharmaceutical ingredients (APIs). Guided by the principles of
"centered on innovative technology and services oriented toward major products differentiated development and specialization
and refinement" the Company leverages its existing industrial supporting advantages and integrates resources to advance the
construction of API manufacturing bases improve pharmaceutical quality management systems and increase investment in the
research and application of new products technologies and equipment in the API field. It actively enhances the core
competitiveness of existing products and expands into emerging markets.
462025 Annual Report of Zhejiang NHU Co. Ltd.
2. Business Plan
In 2026 the Company has clearly defined the operating guiding principles of "expanding markets and increasing volume driving
innovation development empowering operations with intelligent manufacturing and enhancing quality and efficiency". The
Company will adhere to the main strategic course of "Chemical+" and "Biology+" anchor the goal of becoming a "Global NHU"
and focus on enhancing product competitiveness as the main line. The Company will scientifically assess development
opportunities and challenges uphold stability as the overarching principle while pursuing progress and intensify efforts in
exploring "four-new" markets implementing strategic projects empowering with intelligent manufacturing and improving
management efficiency. This will ensure a strong start to the 15th Five-Year Plan period. We will focus on the following aspects:
(1) Focus on Expanding Markets and Increasing Volume Striving to Strengthen Synergy in R&D Production Supply and Sales
Conduct operations centered on market and customer needs strengthening efficient linkage and seamless integration of R&D
production supply and sales. This will form a powerful synergy for market development across procurement technology
production and sales driving performance growth. First the Company will continue to expand the market: Consolidate market
share for existing products accelerate overseas market layout strengthen marketing and service support and solidify the
foundation for sales development. Second the Company will make every effort to collaborate to create value: Advance
technological transformation and energy consumption optimization strategic procurement and centralized procurement to achieve
cost reduction and efficiency improvement; Focus on product quality shortcomings launch targeted improvement actions and
enhance brand influence; Optimize incentive mechanisms to energize teams and stimulate value creation. Third the Company will
ensure market compliance and market access: Accelerate product registration and compliance approvals enhance the foresight of
compliance approvals and lay the groundwork for successful product launches.
(2) Focus on Innovation Development Striving to Accelerate the Execution of Major Projects and Breakthroughs in Key Projects
Concentrate resources to streamline the entire innovation chain from product selection to industrialization fully promoting
projects to achieve production and efficiency on schedule and accelerating the conversion of project results. First the Company
will accelerate new product R&D to seize market opportunities: Deepen the full industry chain layout by extending upstream to
ensure raw material self-sufficiency and cost control and expanding downstream to enhance customized solution capabilities and
market synergy efficiency; Concentrate resources on tackling challenges in key areas such as high-performance materials and new
nutritional products. Second the Company will enhance the potential of existing products to maintain competitive advantages:
Through continuous upgrades establish industry benchmarks for the core metrics of existing products continually solidifying
market advantages; At the same time actively unlock new value from existing products develop differentiated offerings and
472025 Annual Report of Zhejiang NHU Co. Ltd.
explore new application scenarios. Third the Company will build an efficient innovation system to accelerate the conversion of
research results: Proactively deploy revolutionary technologies in areas like catalysis and biology and explore AI applications in
R&D; Investigate disruptive technologies strengthen systematic platforms and forge leading advantages in integrating processes
and equipment; Cultivate talent through practical challenges activating the internal growth momentum of R&D. Fourth the
Company will advance the implementation of key projects to accelerate strategic execution: Projects under development should
accelerate progress; projects not yet approved should expedite approval reviews; projects already in production should achieve
targets and efficiency as soon as possible. Additionally ensure early planning and approval for key metrics.
(3) Focus on Intelligent Manufacturing Empowerment Striving to Advance Pilot Applications of AI
Seize the opportunities brought by technological transformations (such as AI) expand AI applications in core areas systematically
advance intelligent upgrades and build a future-oriented smart enterprise. First the Company will optimize the intelligent
manufacturing system: Complete system upgrades and promote intelligent factory models to achieve full coverage across all
manufacturing bases. Second the Company will strengthen process equipment alignment: Address production pain points and
bottlenecks by introducing advanced equipment promoting intelligent applications and accelerating the continuous and digital
intelligence upgrade of production lines. Third the Company will pilot AI application scenarios: Enhance information systems and
elevate information technology capabilities; Comprehensively expand the knowledge base and intelligent agent applications
initiate the AI sub-platform constructions on manufacturing bases and establish demonstration benchmarks.
(4) Focus on Precision Management Striving to Strengthen the Management Foundation and Enhance Efficiency
Leverage management standardization and systemization as key drivers to promote the institutionalization and normalization of all
business processes achieving a fundamental shift from experience-driven to system-driven operations. First the Company will
deepen system implementation: Fully integrate environmental social and governance (ESG) and carbon reduction requirements
into the management framework coordinate the planning of energy systems and advance renewable energy projects and
market-based green power and green certificates; Improve the operational quality of the health safety and environment (HSE)
system deepen the asset integrity system refine the standards for the entire equipment lifecycle and establish a unified equipment
health management platform. Second the Company will strengthen talent development: Build an international talent system
enhance job competency standards and qualification systems advance reforms in large departments and large workshops and
deepen cultural integration and employee care. Third the Company will promote integration of business and finance: Centered on
finance divide into smaller accounting units to stimulate operational subjective initiative; Strengthen whole-process management
482025 Annual Report of Zhejiang NHU Co. Ltd.
of annual budgets clarify asset management responsibilities and authorities implement multiple measures to enhance market
value management and boost company value.
(5) Focus On Steady Operations Striving to Strengthen Risk Prevention and Control
Risk prevention and control are important safeguards for the Company's healthy development. Strengthen risk identification and
inspection reinforce internal controls improve early-warning mechanisms enhance risk response capabilities and safeguard the
Company's stable development. First the Company will strengthen safety and environmental awareness safeguarding the lifeline:
Enhance the safety execution capabilities of all employees and effectively address prominent safety issues; Promote clean
production and pollution control technologies to ensure green and environmentally friendly production. Second the Company will
strengthen financial management holding the warning line: Continuously reinforce financial accounting management prevent
financial risks strengthen overseas financial controls improve operational risk early warning and prevention mechanisms and
ensure stable company operations. Third the Company will strengthen compliance management building a protective line:
Conduct audits of core business systems and legal risk assessments enhance legal risk prevention and control and strengthen legal
support for overseas operations. Fourth the Company will strengthen ideological guidance establishing a strict disciplinary
bottom line: Improve the trade secret protection system deepen integrity risk prevention and control implement the "Five
Must-Visit and Five Must-Talk" system and reinforce integrity education and work ethics.
3. Possible Risks
(1) Macroeconomic Risks
The international environment is complex and volatile and the global economy faces numerous uncertainties. The Company will
accelerate the pace of internationalization and expedite the deployment of its globalization strategy. It will strengthen localized
operations and service capabilities to ensure steady progress in its internationalization efforts. The Company will continuously
improve the construction of global innovation sales and information centers establish diversified innovation chains supply
chains and customer bases and promote stable and sound development.
(2) Industry and Market Competition Risks
The Company faces competition from peers in both domestic and international markets. Competitors' comprehensive strengths in
technology capital talent reserves and sales channels are continuously improving. The replacement of old capacity with new
capacity has intensified market competition and the Company faces greater challenges within the industry. In the future the
Company will continuously enhance its R&D and innovation capabilities focus on core strategic directions deepen its industrial
492025 Annual Report of Zhejiang NHU Co. Ltd.
chain deployment upgrade product technology and service levels improve management effectiveness enhance value-creation
capabilities and strengthen the Company's comprehensive competitiveness.
(3) Risks of Raw Material Price Fluctuation
As the cost of raw materials accounts for a relatively high proportion of the total cost the price fluctuations caused by the
supply-demand imbalance of raw material will have an impact on the Company’s profit. In the future the Company will reduce
the adverse impact of raw material price fluctuations through market research and judgment establishing strategic partnership with
suppliers and improving the utilization rate of raw materials.
(4) Risks of Product Market Price Fluctuation
Due to changes in market supply and demand and other factors the market prices of the Company's products fluctuate which has
a certain impact on the Company's operating performance. The Company will continuously strengthen market expansion deepen
its industrial-chain layout optimize its product architecture improve quality and efficiency fully tap potential enhance product
value and application and service capabilities. It will also build technological and cost moats and reduce the risks posed by market
price fluctuations.
(5) Exchange Rate and Trade Risks
The current international environment has grown increasingly complex with rising uncertainty in global geopolitical risks and
more variable trade and tariff policies which may have a certain impact on the Company's sales revenue and profitability. Going
forward the Company will strengthen market assessment closely monitor changes in the international situation and mitigate risks
through the use of hedge instruments and by advancing the Company’s international market expansion striving to consolidate the
Company’s international market position and actively explore new sources of economic growth.
(6) Risks of Changes in Environmental Protection Policies
With the increased social awareness of environmental protection the promotion of the ecological civilization construction of the
CPC Central Committee and the strategic goal of "carbon emission peak and carbon neutrality" the requirements for energy
conservation emission reduction safety and environmental protection in the chemical and pharmaceutical manufacturing industry
in which the Company operates are stricter than before. The Company will operate with higher standards fully integrate ESG and
carbon reduction requirements into the management framework and explore more environmentally friendly ways of production to
achieve sustainable development.
502025 Annual Report of Zhejiang NHU Co. Ltd.
XII. Research Communications and Interviews Received by the Company During the
Reporting Period
□Applicable □ Not applicable
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
1. Shenwan Hongyuan
Securities (Song Tao Please refer to the Investor Relations
Introduce the operating
Shao Jingyu); 2. Activities Record Sheet on February
February 27 Conference room of the conditions of the
Field research Institution Southern Fund (Zheng 27 2025 published at the website
2025 Company Company and answer
Yong Li Xinmi Chen http://irm.cninfo.com.cn/ssessgs/S002
questions from investors
Zhuo); 3. Rosefinch 001 for details.Fund (Liu Congcong)
1. Soochow Securities
(Chen Shuxian Zhou
Shaomei); 2. Taikang
Asset (Wang Duolin);
3. CCB Life Asset
Management (Yue
Xiaolin Cao Xinyi
Ban Peiqi); 4. Naxuan
Investment (Zhang
Qingyun); 5.Wideview Asset Please refer to the Investor Relations
Introduce the operating
Management (Shu Activities Record Sheet on March 13
March 13 NHU Life and Health conditions of the
Field research Institution Qihang); 6. Haitong 2025 published at the website
2025 Industrial Park Company and answer
Securities (Sun http://irm.cninfo.com.cn/ssessgs/S002
questions from investors
Weirong); 7. 001 for details.Hongshang Asset (Sha
Zhengjiang); 8.CITIC-Prudential
Fund (Yao Sizhou); 9.CICC (Hou Yilin); 10.Great Wall Securities
(Xiao Yaping Wang
Tong); 11. Shanxi
Securities (Ji Yongjie
Wang Rui)
Shenzhen Stock Investors who Please refer to the Investor Relations
Introduce the operating
Exchange "Interactive Network platform attended the Activities Record Sheet on April 29
conditions of the
April 29 2025 Easy" platform "Cloud online Others Company’s online 2025 published at the website
Company and answer
Interview": communication annual performance http://irm.cninfo.com.cn/ssessgs/S002
questions from investors
http://irm.cninfo.com.cn presentation in 2024 001 for details.
1. Zheshang Securities
(Li Hui Chen Haibo);
2. Chengtong
Securities Asset
Please refer to the Investor Relations
Management (Zhou Introduce the operating
Activities Record Sheet on May 7
Conference room of the Hexiang); 3. Founder conditions of the
May 7 2025 Field research Institution 2025 published at the website
Company Fubon Fund (Liu Company and answer
http://irm.cninfo.com.cn/ssessgs/S002
Meng); 4. China Post questions from investors
001 for details.
Fund (Zhou Daiwei);
5. Harvest Fund (Chen
Luhua Chen
Jingcheng); 6.
512025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
Tenbagger Capital
(Zheng Hui); 7.Changsheng Fund
(Zhao Qichao); 8.Penghua Fund (Wang
Xiwei); 9. China Life
AMP (Li Bowen); 10.ICBC Wealth
Management (Si
Huajing); 11. Heng An
Standard Life (Wang
Zhiheng); 12. China
Everwin (Chen Hang);
13. Jinding Capital
(Tang Chenzhuo); 14.Yuance Investment (Li
Chao); 15. CITIC
Asset Management
(Chen Han); 16.
Ginkgo Capital
(Zhang Haijun); 17.PICC Pension (Xu
Kunlun); 18. Yuri
Capital (Wang Yutian)
1. Bohai Securities
(You Yue); 2. GF
Securities (Wu
Xinran); 3. Sinolink
Securities (Li Hanyu);
4. Guolian Securities
(Zhang Weihang); 5.SDIC Securities (Feng
Yongkun); 6. HuaAn
Securities (Wang
Qiangfeng Liu
Tianqi); 7. Great Wall
Securities (Xiao
Please refer to the Investor Relations
Yaping Wang Tong); Introduce the operating
Activities Record Sheet on May 8
Conference room of the 8. Changjiang conditions of the
May 8 2025 Field research Institution 2025 published at the website
Company Securities (Ma Tai Company and answer
http://irm.cninfo.com.cn/ssessgs/S002
Wang Cheng); 9. questions from investors
001 for details.
Huatai Securities
(Zhuang Tingzhou);
10. Shanxi Securities
(Ji Yongjie); 11.Zhongtai Securities
(Sun Ying Wang
Peng); 12. Minsheng
Securities (Zeng
Jiachen); 13. Guosen
Securities (Yang Lin
Wang Xinhang); 14.TF Securities (Tang
Jie Xing Yanning);
522025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
15. BOC International
Securities (Fan
Qiyan); 16. CITIC
Securities (Tian
Xiancheng); 17.Minsheng Securities
(Zeng Jiachen); 18.Zheshang Securities
(Wang Yuan); 19. East
Money (Zhang
Zhiyang); 20. China
Universal Asset
Management (Liu
Gaoxiao); 21.Rosefinch Fund (Liu
Congcong); 22. UBS
SDIC (Zhou Sijie);
23. Qianlin
Investment (Zeng
Lin); 24. Hangzhou
Financial Investment
(Zhan Qian); 25.Hongchou Investment
(Liu Jianyang); 26.Sharewin Investment
(Wu Shengbo); 27.China Securities (Tao
Aipu); 28. Junhe
Capital (Liu Jian Ji
Liuyu Zhang Yujie);
29. Qingyu Capital
(Zhang Xinbin); 30.Franklin Templeton
Sealand Fund (Zhang
Rui); 31. Guotai
Haitong (Zhou
Zhipeng); 32.Huaneng Guicheng
(Sun Yu Zhou Hao);
33. HSBC Qianhai
(Huang Qian); 34.Taipu Shengke (Wang
Yong Ye Tingting Lei
Rong); 35. Shanghai
Greenwoods (Jiang
Wenchao); 36.Shanghai Ningquan
(Qiu Weijia); 37.Supor Group (Li
Yulu); 38. Tibet
Hezhong Yisheng (Xu
Xinke); 39. Yujian
Technology (Lu
Zhikai); 40.
532025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
Wisdomshire Asset
(Liu Li); 41. CICC
(Jia Xiongwei Hou
Yilin); 42. Huanong
Asset (Sun Meng); 43.Individual
shareholders etc.
1. CITIC Securities
(Liu Chang); 2.Soochow Securities
(YuYanqiu); 3.Oriental International
(Huang Jiansong); 4.Taikang Fund (Wang
Lingli); 5. Ningbo
Liangli (Chen
Jinzhuan); 6. Allianz
Fund (Zhang
Zhuyuan); 7. CITIC
Asset Management
(Sheng Liyang); 8.Aegon-industrial Fund
(Ye Fei); 9. Origin
Fund (Wei Boyang); Please refer to the Investor Relations
Introduce the operating
10. Greenwoods Asset Activities Record Sheet on May 29
Shanghai Pudong conditions of the
May 29 2025 Field research Institution (Jiang Wenchao); 11. 2025 published at the website
Shangri-La Hotel Company and answer
Dingtai Sifang (Chen http://irm.cninfo.com.cn/ssessgs/S002
questions from investors
Yongbao); 12. Xueshi 001 for details.Asset (Wu Xi); 13.Hongchou Investment
(Wang Zhidong); 14.Singapore Polunin
Capital (Huang Jing);
15. BOC Fund (Zhang
Xiangdong); 16. HFT
Fund (Bai Xiaolan);
17. Yuan Shijie
(Huang Tianfu Chen
Zhiqiang); 18.Essence Investment
(Wang Chu Li
Yuxin); 19. Junhe
Capital (Ji Liuyu Sun
Zhenxin)
1. Guotai Haitong
(Zhou Zhipeng Xiao
Jie); 2. Huatai
Please refer to the Investor Relations
The Ritz-Carlton Securities (Zhuang Introduce the operating
Activities Record Sheet on June 5
Shanghai Pudong; Tingzhou Yang conditions of the
June 5 2025 Field research Institution 2025 published at the website
Shanghai Pudong Wentao); 3. Northeast Company and answer
http://irm.cninfo.com.cn/ssessgs/S002
Shangri-La Hotel Securities Proprietary questions from investors
001 for details.
Trading (Feng
Xiantao); 4.Hongshang Asset (Sha
542025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
Zhengjiang); 5.Fidelity (Yuan
Ruipeng); 6. GIC (Liu
Zhuoyu); 7. Harvest
Fund (Cai
Chengfeng); 8. China
Universal (Hua
Xiuning); 9. Haitong
Asset Management
(Li Chen); 10. Boyu
Investment (Dou
Shuai); 11. Sharewin
Investment (Wu
Shengbo); 12. Aoxia
Investment (Zhou
Zhikang); 13.Aegon-industrial Fund
(Xia Siheng); 14.Songxi Asset (Ge
Xinyu); 15.Changjiang Pension
(Ma Rui); 16. Ningbo
Zetian Investment
(Zhang Lujun); 17.Shanghai Wideview
Asset Management
(Shu Qihang); 18.Heng An Life (Wang
Zhiheng); 19.Foresight Fund (Zhu
Lin); 20. HFT (Zong
Jiezhen); 21. Taipu
Asset (Fu He); 22.CCB Life Asset
Management (Ban
Peiqi); 23. Suzhou
Junrong Asset (Zhang
Jiguang); 24. Banxia
Investment (Liu Wei);
25. Huatai Baoxing
(Li Chen); 26.Shanghai Tianyidao
(Hu Jia); 27.CITIC-Prudential
Fund (Yao Sizhou);
28. Yimi Fund (Liu
Jiaxi); 29. Manulife
Fund (Fan Yaqin)
1. TF Securities (Xing
Please refer to the Investor Relations
Shanghai Pudong Yanning); 2. HuaAn Introduce the operating
Activities Record Sheet on June 26
Shangri-La Hotel; Securities (Wang conditions of the
June 26 2025 Field research Institution 2025 published at the website
Lujiazui Fuhui Building Qiangfeng Liu Company and answer
http://irm.cninfo.com.cn/ssessgs/S002
Tower A Tianqi); 3. CICC (Jin questions from investors
001 for details.
Binbin); 4. Yuekai
552025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
Venture Capital (Zhao
Qi); 5. Minsheng
Tonghui (Ai Mengqi);
6. Supor Group (Li
Yulu); 7. Qinchen
Asset (Yang Jin); 8.Huatai Baoxing (Li
Chen); 9. Wanjia
Asset (Lei Yinjia)
1. Fuanda Fund (Lu
Xu); 2. Hangzhou
Bank Wealth
Management (Liu
Aizhu); 3. Founder
Proprietary Trading
(Zhu Zhangyuan); 4.China Post Fund
(Zhou Gowei); 5.Franklin Templeton
Sealand Fund (Zhang
Rui); 6. Rosefinch
Fund (Xu Ke); 7.Chengluo Capital (Lin
Tianxin); 8. Xingyin
Fund (Luo Yida); 9.Vision Capital (Zhou
Yang); 10. Future
Vessel Capital (Liao
Shudi); 11. Zheshang
Shanghai Pudong
Asset Management Please refer to the Investor Relations
Mandarin Oriental Hotel; Introduce the operating
(Wang Yuan); 12. Activities Record Sheet on August 29
August 28 Shanghai Pudong conditions of the
Field research Institution Taiping Fund (Xia 2025 published at the website
2025 Shangri-La Hotel; Company and answer
Wenqi); 13. Ping An http://irm.cninfo.com.cn/ssessgs/S002
Shanghai Jinmao Grand questions from investors
Life (Liu Zhihua); 14. 001 for details.Hyatt Hotel
CIB Fund (Wang
Tengxiao); 15.Soochow Proprietary
Trading (Yang Moxi);
16. Heng An Standard
Life (Wang Zhiheng);
17. Maodian Asset
(Tang Zhongjie); 18.Futong Fund (Ma
Jun); 19. Hongchou
Investment (Wang
Yundong); 20. Bosera
Fund (Wang
Lingxiao); 21.Shanghai Hetu
Investment (Jin
Jiayin); 22. Lion Fund
(Zhou Xiaoqi); 23.Wolonggang
Investment (Zhang
562025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
Yifeng); 24. CITIC
Asset Management
(Wang Zining); 25.CCB Life Asset
Management (Ban
Peiqi); 26. Boxin
Fund (Sheng Ru); 27.Huachuang
Proprietary Trading
(Zhao Jingtong); 28.Nuode Fund (Zuo
Fei); 29. Hony
Horizon Fund (Ai
Xiongfeng); 30.Maxwealth Fund (Lin
Weihao); 31.Wisdomshire Asset
(Liu Li); 32. Shanghai
Securities Proprietary
Trading (Zhou
Fengchun); 33.Taiping Asset (Yin
Weiguo); 34. Hainan
Kuanxing (Cai
Zhiquan Li Ni); 35.Huatai Baoxing (Tian
Rong); 36. Taikang
Asset (Wang Lingli);
37. China Innovative
Capital (Zhao Qi); 38.Focus Bridge Fund
(Xue Liangchen); 39.Panjing Investment
(Qiao Yuyan); 40.Zheshang Securities
(Li Hui); 41. HSBC
Jintrust (Wang Jiayi);
42. China Everwin
(Chen Hang); 43.
Western Leadbank
(Chen Yu); 44.
Changjiang Pension
(Ma Rui); 45. SWS
MU (Miao Qi); 46.Dacheng Fund (Liu
Fanglin); 47. GF
Securities (Wu
Xinran Qu Shanghao
Huang Peimin); 48.Soochow Securities
(Chen Shuxian Zhou
Shaowen); 49. China
Universal (Ye
Congfei Liu Gaoxiao
572025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
Liu Sheng); 50.Individual investors
1. Southern Fund (Li
Xinmi); 2. First-trust
Fund (Zhang
Zhenzhuo); 3. FH
Fund (Li J); 4.Hwabao WP Fund (Li
Liyi); 5. Xingyin
Wealth Management
(Chen Yalong); 6.
Xiaofeng Investment
(Yin Xiaoyu); 7.Zhonggeng Fund
(Zhou Ruang); 8.Broad Fund (Tao
Jiaheng); 9. Capital
Securities (Chen
Zhibo); 10. Beijing
Shengshui Investment
(Liu Hongming); 11.BNBWealth
Management (Sun
Wenrui); 12.Rosefinch Fund (Liu
Congcong Xu Ke);
Please refer to the Investor Relations
13. Galaxy Fund Introduce the operating
Regent Shanghai Pudong; Activities Record Sheet on September
September 4 (Chen Kaiqian); 14. conditions of the
Shanghai Jinmao Grand Field research Institution 4 2025 published at the website
2025 Vision Knight Capital Company and answer
Hyatt Hotel http://irm.cninfo.com.cn/ssessgs/S002
(Xue Yuan); 15. Ping questions from investors
001 for details.
An Fund (Li
Huasong); 16.Shanghai Kunlun
Pansheng (Li
Zhongming); 17.Guotai Haitong Asset
Management (Yang
Nan); 18. Wanjia
Asset (Lei Yinjia); 19.Dolphin Invest (Zhou
Huayi); 20. China Life
AMP (Sa Weixu Guo
Yongyi); 21. Nature
Capital (Miao Tianyi);
22. Beautiful
Homeland (Ren Jing);
23. Wideview Asset
Management (Shu
Qihang); 24. Shenwan
Chemical (Shao
Jingyu Li
Shaocheng); 25.Guosen Securities
(Wang Xinhang Dong
582025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
Bingxu)
1. Changjiang
Chemical (Ma Tai
Wang Cheng); 2.China Merchants
Fund (Zhu Hongyu
Yao Feijun Lu
Wenkai Luo Lisi
Zhao Zongyuan Wang Please refer to the Investor Relations
Company headquarters Introduce the operating
Jing Chen Haibo Zou Activities Record Sheet on November
November 5 conference room; The conditions of the
Field research Institution Cheng Yang Yiyang); 5-6 2025 published at the website
2025 Ritz-Carlton Shanghai Company and answer
3. Soochow Securities http://irm.cninfo.com.cn/ssessgs/S002
Pudong questions from investors
(Zhou Shaowen); 4. 001 for details.HuaAn Fund (Xin
Dawei); 5. Huatai
Asset (Wang Xiwei);
6. Caitong Asset
Management (Guo
Qikun); 7. Fullgoal
Fund (Sha Wei)
1. Great Wall
Securities (Xiao
Yaping Wang Tong);
2. Suijiu Investment
(Lu Chen Li Chunxia
Zeng Xiaomin); 3. Please refer to the Investor Relations
Introduce the operating
Zheshang Securities Activities Record Sheet on November
November 11 Conference room of the conditions of the
Field research Institution (Li Hui Li Wenjun); 11-12 2025 published at the website
2025 Company Company and answer
4. Taikang Asset (Lin http://irm.cninfo.com.cn/ssessgs/S002
questions from investors
Chongping Xiao Rui 001 for details.Chen Jiayi Wang
Duolin); 5. Huatai
Securities (Zhuang
Tingzhou Zhang
Xiong)
1. China Securities
(Lu Hao Tao Aipu
Zhao Runzhang Hu
Haowen); 2. China
Everwin (Chen Hang);
3. Ping An Fund
(Zhang Miao); 4.Etock Capital (Dang Please refer to the Investor Relations
Beijing Shangri-La Hotel; Introduce the operating
Kaiyu); 5. Guolian Activities Record Sheet on November
November 13 Kerry Hotel Beijing; conditions of the
Field research Institution Fund (Yang Dazhi); 6. 13-14 2025 published at the website
2025 Company headquarters Company and answer
China Life AMP (Li http://irm.cninfo.com.cn/ssessgs/S002
conference room questions from investors
Bowen); 7. CCB 001 for details.Pension (Ji Shi); 8.BOC-Samsung Life
(Shao Jingjing); 9. U
Capital (Liang Hui);
10. Beijing Heju
Investment (Mai
Turong); 11.
592025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
Changsheng Fund
(Qian Wenli); 12.China Merchants
Fund (Yang Yiyang
Li Yi); 13. China
Dragon Securities
(Men Taoshuan); 14.Yude Capital (Jin
Tianzhen); 15. Yellow
River P&C Insurance
(Fan Hualin); 16.
China Post Securities
(Chen Liang); 17.
Wuhan Yanshi
Technology (Feng
Xiangming); 18.Huachuang Securities
(WuYu); 19. GF
Securities (Wu
Xinran); 20. Maike
Investment (Yang
Guang); 21. CICC (Jia
Xiongwei Hou Yilin
Wang Tianhe); 22.Harvest Fund (Zhang
Jintao Tan Li); 23.Suijiu Asset (Lu
Chen); 24. Beijing HC
Capital (Chen Qian);
25. China Post Asset
Management (Yang
Chen); 26. Dehe
Investment Fund
(Zhang Wen); 27.Sichuan Development
Securities Investment
Fund (Jiang Yang); 28.Yunfu Investment (Shi
Wei); 29. Xinghe
Fund (Sun Qi); 30.Beijing Omnilux Fund
(Han Fei); 31. Dingtai
Sifang (Chen
Yongbao); 32.Double-Safeguard
Asset (Li Suijun); 33.CICC Asset
Management (Jin
Binbin); 34. China
Merchants Fund (Li
Yi); 35. Xinhua Fund
(Gu Hang)
November 21 Futian Shangri-La Hotel; 1. Guosen Securities Introduce the operating Please refer to the Investor Relations
Field research Institution
2025 Penghua Fund (Yang Lin Wang conditions of the Activities Record Sheet on November
602025 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of the
Date of Index for basic information of the
Reception site Way of reception Type of visitor Visitors conversation and
reception investigation
information provided
Management Co. Ltd. Xinhang Luo Company and answer 21 2025 published at the website
Ruikang Min questions from investors http://irm.cninfo.com.cn/ssessgs/S002
Xiaoping He Pei 001 for details.etc.); 2. Shenzhen
Qianhai Hezhi (Zhao
Peng); 3. Hainan
Kuanxing Private
Equity (Zhao Rujian);
4. Farsight AMC (Tian
Huilan); 5. Zhilian
Investment (Zhou
Jianwu); 6. Sino Life
Asset (Li Yanling); 7.Harbor Life (Wang
Zhicheng); 8. China
Asset Management
(Huang Hao); 9.Jinshan Lake
Investment (Zheng
Guangqiang); 10.Gaoyi Asset (Liu
Dong); 11.BATACH-SOPHIA
(Che Xiangqian); 12.
Bosera Fund (Deng
Yuncheng); 13.Invesco Great Wall
Fund (Fan Shunxin
Liang Rong); 14.Great Wall Fund (Li
Jinhong); 15. Truvalue
Asset Management
(Li Yan); 16. Minghui
Fund (Li Aiwu); 17.Wingtech Fund (Li
Jianyin); 18. Penghua
Fund (Yang Hao Liu
Yujiang Yu Jishuang
Chen Jinwei)
612025 Annual Report of Zhejiang NHU Co. Ltd.
XIII. Formulation and Implementation of Market Value Management System and Valuation
Enhancement Plan
Whether the Company has formulated a market value management system
□Yes □ No
Whether the Company has disclosed the valuation enhancement plan
□ Yes□ No
The Company deliberated and approved the Market Value Management System at the 11th Meeting of the Ninth Session of the
Board of Directors of the Company held on April 11 2025 which specifies the institutions and responsibilities of market value
management the main methods of market value management the monitoring and early warning mechanism and the contingency
measures etc. as detailed in the announcement of the Company published on CNINFO Website (http://www.cninfo.com.cn) on
April 15 2025.XIV. Implementation of the "Increase in Both Quality and Returns" Action Plan
Whether the Company disclosed the "Increase in Both Quality and Returns" action plan
□Yes □ No
To implement the guiding ideology proposed by the Political Bureau of the CPC Central Committee to "activate the capital market
and boost investor confidence" and by the Executive Meeting of the State Council to "vigorously improve the quality and
investment value of listed companies take more effective and effective measures and focus on stabilizing the market and
confidence" and to safeguard the rights and interests of all shareholders enhance investor confidence and promote the Company'slong-term sustainable development the Company published the Announcement on "Increase in Both Quality and Returns” Action
Plan (2024-002) on designated information disclosure media and CNINFO Website (http://www.cninfo.com.cn) on March 9 2024.The main content of the action plan includes four aspects: "Innovation-driven development excellence and specialization"
"Contributor-based sharing of the Company's development results" "Deepening corporate governance and improving the standard
operation level" and "Compliance information disclosure and sincere two-way communication".During the reporting period the Company actively promoted the implementation of the "Increase in Both Quality and Returns"
Action Plan continuously deepened the execution of various measures constantly consolidated and improved business quality and
governance levels attached importance to shareholder returns and corporate value communication and achieved good results in
multiple aspects. For details please refer to the Progress Announcement on the Action Program of "Increase in Both Quality andReturns” (2026-008) published by the Company on April 16 2026 in the designated information disclosure media and CNINFO
Website (http://www.cninfo.com.cn).
622025 Annual Report of Zhejiang NHU Co. Ltd.
Section IV Corporate Governance Environment and Society
I. Basic Information
During the reporting period the Company further improved its corporate governance structure and internal control system
strengthened its information disclosure management actively carried out investor relations management and constantly promoted
its corporate governance in strict accordance with the "Company Law of the People’s Republic of China" the "Securities Law of
the People’s Republic of China" and relevant laws regulations and regulatory documents of CSRC and the Shenzhen Stock
Exchange.
1. About shareholders and Board of Shareholders: The Company convenes and holds shareholder meetings in accordance with the
requirements of the "Rules for Board of Shareholders of Listed Companies" and its "Rules of Procedure of the General Meeting of
Shareholders" treats all shareholders equally ensures that all shareholders especially small and medium-sized shareholders have
equal status and fully exercise their rights and ensures that all shareholders have the legal rights to information participation and
voting on significant events.
2. About the relationship between the controlling shareholder and the Company: The Company has independent business and
self-management ability. The Company’s controlling shareholder strictly regulates its own behavior exercises the rights of an
investor through the Board of Shareholders and does not directly or indirectly interfere with the decision-making and operational
activities of the Company beyond the Board of Shareholders. The related party transactions between the Company and the
controlling shareholder are on an arm’s length basis while these two are independent of each other in personnel property finance
organization and business and the Company’s Board of Directors and internal organizations can operate independently.
3. About directors and the Board of Directors: The Company elects directors and appoints directors representing employees in
strict accordance with the selection and appointment procedures as stipulated in the Company Law and the Articles of Association.Independent directors effectively fulfill their roles in "participating in decision-making exercising oversight and checks and
providing professional advice". The board size and composition meet the requirements of laws and regulations. In accordance with
the "Rules of Procedure of the Board of Directors" and other rules all directors can seriously attend board meetings faithfully
perform their duties for the interests of the Company and all shareholders actively participate in relevant training learn relevant
laws and regulations and promote the standardized operation and scientific decision-making of the Board of Directors. The Board
of Directors has established the following committees: the Strategy Committee the Remuneration and Assessment Committee the
Nomination Committee and the Audit Committee. These special committees strictly perform their duties in accordance with
632025 Annual Report of Zhejiang NHU Co. Ltd.
relevant laws regulations and their respective rules of procedure providing valuable support for the scientific decision-making of
the Board of Directors. The meeting procedures of the Board of Directors comply with legal requirements the minutes are
complete and true and the disclosure of information related to the meetings is timely accurate and sufficient.
4. About performance evaluation and incentive and restrictive mechanism: The Company’s performance evaluation and incentive
mechanism is fair and transparent and the emoluments of directors and senior management are based on the Company’s
performance and individual performance; the appointment of senior management strictly follows the Articles of Association and
relevant laws and regulations.
5. About information disclosure and transparency: The Company designates the secretary of the Board of Directors to be
responsible for information disclosure and receiving visits and inquiries from shareholders and designates Securities Times
Shanghai Securities News China Securities Journal and CNINFO Website (http://www.cninfo.com.cn) as the designated
newspapers and websites for the Company’s information disclosure; Complying with relevant laws and regulations and the
requirements of the Company’s "Information Disclosure Management System" the Company discloses relevant information in a
true accurate complete and timely manner to ensure that all shareholders have equal access to information.
6. About stakeholders: the Company can fully respect and safeguard the legitimate rights and interests of stakeholders realize the
coordination and balance of interests among shareholders employees society and other parties and jointly promote the
sustainable and healthy development of the Company.Whether there is a significant difference between the actual situation of corporate governance and laws administrative regulations
and rules on the governance of listed companies issued by the CSRC
□ Yes□ No
There is no significant difference between the actual situation of corporate governance and laws administrative regulations and
rules on the governance of listed companies issued by the CSRC.II. The Company’s Efforts in Ensuring the Independence of Its Assets Personnel Finance
Organization Business Etc. From the Controlling Shareholder and Actual Controller
During the reporting period the Company and the controlling shareholder were completely separated in terms of business
personnel assets finance organization etc. With stable production and operation complete internal organization the Company
was able to operate independently and in a standardized manner.
642025 Annual Report of Zhejiang NHU Co. Ltd.
1. Independence of Business
The Company operates independently under a complete business structure and has no business in horizontal competition with that
of the controlling shareholder. The controlling shareholder does not directly or indirectly interfere with the Company’s business
operations.
2. Independence of Personnel
The Company’s labor personnel and remuneration management are completely independent. The Company has entered into labor
contracts with employees and formulated a strict labor system such as employment assessment promotion training etc. All
employees are paid by the Company. All senior management work full-time and receive emoluments from the Company and do
not hold any administrative positions concurrently in the controlling shareholder and its subordinate entities.
3. Independence of Assets
The Company has an independent and complete production supply sales system and supporting facilities and has independent
industrial property rights trademarks non-patented technologies and other intangible assets.
4. Independence of Finance
The Company has an independent financial and accounting department and has established an independent accounting system and
financial management system to make financial decisions independently. The Company opens bank accounts and pays taxes
independently.
5. Independence of Organization
The Company’s organization is independent from the controlling shareholder. The Company has established a relatively sound
organizational structure and has established decision-making and supervision institutions such as the Board of Shareholders the
Board of Directors etc. The Company set up the Board Office Audit Department Financial Department Securities Department
President’s Office Human Resources Department Production and Operation Department HSE Management Department
Engineering Equipment Management Department Procurement Department Marketing Management Department General
Engineer's Office Design Institute Science and Technology Cooperation Department Intellectual Property Department Research
Institute and other functional departments. The aforementioned institutions and functional departments operate independently and
there is no situation where the controlling shareholder’s institutions act on behalf of the Company.III. Horizontal Competition
□Applicable□ Not applicable
652025 Annual Report of Zhejiang NHU Co. Ltd.
IV. Directors and Senior Management
1. Basic Information
Number
Number of
Number of of shares
shares Number of
Start date of shares held at decreased Other Reasons for
End date of increased in shares held at
Name Gender Age Position Status term of the beginning of in the increase/decrease increase or
term of office the current the end of the
office the period current (shares) decrease
period period (shares)
(shares) period
(shares)
(shares)
February 26 September
Hu Baifan Male 64 Chairman Incumbent 13922998 13922998
1999192026
Vice Chairman February 26 September
Hu Baishan Male 59 Incumbent 14595929 14595929
President 1999 19 2026
Director Vice Increase in
President February 26 September shareholding
Shi Guanqun Male 55 Incumbent 10477838 200000 10677838
Secretary of the 1999 19 2026 by the
Board CFO shareholder
Wang Director Vice February 26 September
Male 57 Incumbent 8877931 8877931
Xuewen President 1999 19 2026
Wang April 12 September
Male 57 Director Incumbent 459000 459000
Zhengjiang 2008 19 2026
Zhou April 20 September
Male 51 Director Incumbent 165242 165242
Guiyang 2011 19 2026
September September
Yu Hongwei Male 55 Director Incumbent
192023192026
Independent September September
Ji Jianyang Male 47 Incumbent
Director 15 2020 19 2026
Independent September September
Shen Yuping Male 69 Incumbent
Director 19 2023 19 2026
Independent September September
Wan Feng Male 50 Incumbent
Director 19 2023 19 2026
Independent September September
Wang Yang Male 47 Incumbent
Director 19 2023 19 2026
Zhang September September
Female 49 Vice President Incumbent 47400 47400
Liying 19 2023 19 2026
Total -- -- -- -- -- -- 48546338 200000 0 48746338 --
Whether there was any resignation of directors and senior management during the reporting period
□ Yes□ No
Changes of directors and senior management
□ Applicable□ Not applicable
2. Profiles of Directors and Senior Management
Professional background work experience and main responsibilities of the current directors and senior management
Hu Baifan (Professor-level Senior Economist) currently serves as the Chairman of the Company. He used to work in Xinchang
Dashiju Vocational Middle School.Hu Baishan (EMBA of Zhejiang University Senior Engineer) currently serves as the Vice Chairman and President of the
Company. He used to be the Deputy General Manager of the Company.
662025 Annual Report of Zhejiang NHU Co. Ltd.
Shi Guanqun (Accountant) currently serves as the Director Vice President Secretary of the Board of Directors and CFO of the
Company. He used to be the manager of the Financial Department of the Company.Wang Xuewen (majoring in business management at Donghua University) currently serves as the Director and Vice President of
the Company and the General Manager of the Chemical Product Business Department. He used to be the manager of the
Company’s supply and marketing company.Wang Zhengjiang (Master’s degree Professor-level Senior Engineer) currently serves as the Director of the Company General
Manager of Methionine Business Department and the General Manager of Shandong NHU Amino-acids Co. Ltd. He used to be
the manager of Shangyu NHU Bio-Chem Co. Ltd.Zhou Guiyang (Bachelor’s degree Professor-level Senior Engineer) currently serves as the Director of the Company General
Manager of New Material Business Department and the General Manager of Zhejiang NHU Nylon Materials Co. Ltd. and
Tianjin NHU Materials Technology Co. Ltd. He used to be the General Manager of Shangyu Base and General Manager of
Zhejiang NHU Specialty Materials Co. Ltd.Yu Hongwei (Bachelor’s degree) currently serves as the Director of the Company General Manager of Shandong NHU Holdings
Co. Ltd. General Manager of NHU Shandong Industrial Park and General Manager of Shandong NHU Fine Chemical Science
and Technology Co. Ltd. He used to be the Deputy Chief Engineer of Zhejiang Juhua Group Co. Ltd.Ji Jianyang (Master's degree) Independent Director has been a Partner of Beijing Guantao Zhongmao (Hangzhou) Law Firm
since 2014 and a Practice Mentor of Zhejiang University Law School and served as Independent Director of Jingu Stock (002488)
and Fengli Intelligence (301368).Shen Yuping (Doctor of Economics) Independent Director has served as a Professor and Dean at Zhejiang University of Finance
& Economics and currently holds the positions of Professor and Master’s Supervisor at Zhejiang University of Finance &
Economics. He is also a Provincial-Level Teaching Master in Zhejiang Province a Certified Tax Agent and a talent under the
"151 Talent Program". He also serves as an Independent Director of Hongxun Technology (603015) and Hangzhou Landscape
Architecture (300649).Wan Feng (Doctor of Management) Independent Director has served as a Senior Software Engineer at Oracle Corporation
(China) Assistant Professor at the Business and Management School of Beijing Normal University and Associate Professor at the
University of East Anglia. Since 2021 he has been serving as an Associate Professor at Zhejiang University International Business
School.Wang Yang (Doctor of Accounting) Independent Director has successively served as Senior Manager of Ping An Securities Co.LTD. Post-doctoral workstation of Shenzhen Stock Exchange Senior Manager of Beijing Working Group Senior Manager of
National SME Share Transfer System Co. LTD. Senior Manager of Zhongguancun Innovative and Entrepreneurial Enterprises
672025 Annual Report of Zhejiang NHU Co. Ltd.
Listing Training Base of Shenzhen Stock Exchange. Since 2018 he has been the Director of Risk Control and the Head of
Compliance and Risk Control of Beijing Zhiming Haojin Investment Management Co. Ltd.Zhang Liying (Bachelor's degree Professor-level Senior Economist) current Vice President of the Company has served as
Deputy Section Chief of the Quality Management Section Director of the Company Certification Office Assistant Director of
Enterprise Management Department Assistant Director of the President's Office Deputy Director of Enterprise Management
(presiding) Deputy Director of Human Resources (presiding) Director of Human Resources and Assistant to Vice President.Whether the controlling shareholder and actual controller simultaneously serve as Chairman and General Manager of the listed
company
□ Applicable□ Not applicable
Directors and senior management who serve in the shareholders’ entities
□Applicable □ Not applicable
Whether receive
emoluments and
Name of Position in Start date of term of End date of term of
Name of persons allowances from
shareholders shareholders office office
shareholders’
entities
NHU Holding Chairman
Hu Baifan November 11 2011 December 27 2026 No
Group Co. Ltd. General Manager
NHU Holding
Hu Baishan Director November 11 2011 December 27 2026 No
Group Co. Ltd.NHU Holding
Shi Guanqun Director November 11 2011 December 27 2026 No
Group Co. Ltd.NHU Holding
Wang Xuewen Director November 11 2011 December 27 2026 No
Group Co. Ltd.NHU Holding
Wang Zhengjiang Director December 28 2023 December 27 2026 No
Group Co. Ltd.Chairman of the
NHU Holding
Zhou Guiyang Board of December 28 2023 December 27 2026 No
Group Co. Ltd.Supervisors
Remarks None
Directors and senior management who serve in other entities
□Applicable □ Not applicable
Whether
receive
Name of other Position in other Start date of term of End date of term of emoluments
Name of persons
entities entities office office and allowances
from other
entities
Executive
Zhejiang Gengdu
Hu Baifan Director and September 4 2012 To date No
Investment Co. Ltd.General Manager
Xinchang Heli
Hu Baifan Director January 3 2017 To date No
Investment Co. Ltd.Safe & Rich Venture
Hu Baifan Director December 5 2008 To date No
Capital Co. Ltd.Hangzhou Tongheng
Hu Baifan Director September 21 2015 To date No
Zheshang
682025 Annual Report of Zhejiang NHU Co. Ltd.
Whether
receive
Name of other Position in other Start date of term of End date of term of emoluments
Name of persons
entities entities office office and allowances
from other
entities
Investment
Management Co.Ltd.Xinchang Qinjin
Hu Baifan Director June 10 2015 To date No
Investment Co. Ltd.Xinchang Qinjin
Hu Baifan General Manager May 30 2019 To date No
Investment Co. Ltd.Zhejiang Xinchang
Hu Baifan Rural Commercial Director January 26 2005 To date No
Bank Co. Ltd.Beijing Front
Hu Baifan Director May 16 2019 May 26 2028 No
Pharma CO. Ltd.Shaoxing Yuexiu
Education Chairman and
Hu Baifan December 5 2016 July 25 2026 No
Development Co. General Manager
Ltd.Zhejiang Hefeng Executive
Hu Baifan April 20 2018 To date No
Investment Co. Ltd. Director
Zhejiang Hefeng
Hu Baifan General Manager July 21 2022 To date No
Investment Co. Ltd.Beijing NHU Real
Hu Baifan Estate Holding Co. Director December 2 2010 To date No
Ltd.Xinchang County
Hu Baifan NHU Real Estate Director March 20 2017 To date No
Co. Ltd.Qionghai Bo'ao
Hu Baifan Lidu Real Estate Director June 21 2024 To date No
Co. Ltd.Xinchang County
Hu Baifan Chuiyu Cultural Director December 11 2025 December 10 2029 No
Development Center
Zhejiang Second
Hu Baishan Director September 15 2017 December 20 2027 No
Pharma Co. Ltd.Shaoxing Yuexiu
Education
Hu Baishan Director December 5 2016 July 25 2026 No
Development Co.Ltd.Xinchang Heli
Shi Guanqun Chairman November 30 2012 To date No
Investment Co. Ltd.Xinchang Qinjin
Shi Guanqun Director June 10 2015 To date No
Investment Co. Ltd.Shaoxing Yuexiu
Education
Shi Guanqun Director December 5 2016 July 25 2026 No
Development Co.Ltd.Beijing NHU Real
Shi Guanqun Estate Holding Co. Director December 2 2010 To date No
Ltd.Zhejiang Jingshi
Shi Guanqun Director September 22 2020 May 28 2027 No
Real Estate Co. Ltd.
692025 Annual Report of Zhejiang NHU Co. Ltd.
Whether
receive
Name of other Position in other Start date of term of End date of term of emoluments
Name of persons
entities entities office office and allowances
from other
entities
Zhejiang Deli
Shi Guanqun Director October 24 2016 To date No
Equipment Co. Ltd.Beijing Front
Shi Guanqun Director May 16 2019 May 26 2028 No
Pharma CO. Ltd.Xinchang County
Shi Guanqun NHU Real Estate Director March 20 2017 To date No
Co. Ltd.Qionghai Bo'ao
Shi Guanqun Lidu Real Estate Director June 21 2024 To date No
Co. Ltd.Zhejiang Huixian
Executive
Shi Guanqun Venture Capital Co. July 10 2024 To date No
Director
Ltd.Xinchang County
Shi Guanqun Chuiyu Cultural Supervisor December 11 2025 December 10 2029 No
Development Center
Envalior NHU
Engineering
Zhou Guiyang Vice Chairman January 7 2016 To date No
Materials (Zhejiang)
Co. Ltd.Zhejiang Saiya
Zhou Guiyang Chemical Materials Director January 3 2017 March 28 2026 No
Co. Ltd.Beijing Guantao
Ji Jianyang (Hangzhou) Law Partner January 9 2024 To date Yes
Firm
Zhejiang Jingu Co. Independent
Ji Jianyang October 16 2020 November 6 2026 Yes
Ltd. Director
Zhejiang Fore
Intelligent Independent
Ji Jianyang December 15 2020 December 11 2026 Yes
Technology Co. Director
Ltd.Zhejiang
Ji Jianyang International Trade Outside Director December 18 2021 To date Yes
Group Co. Ltd.Zhejiang University
Shen Yuping of Finance & Professor August 6 1980 To date Yes
Economics
Ningbo Techmation Independent
Shen Yuping February 1 2021 October 29 2026 Yes
Co. Ltd. Director
Hangzhou
Landscape Independent
Shen Yuping September 18 2024 December 27 2026 Yes
Architecture Design Director
Institute Co. Ltd.Zhejiang University
Associate
Wan Feng International December 1 2021 December 31 2027 Yes
Professor
Business School
Beijing Zhiming Director of Risk
Haojin Investment Control Head of
Wang Yang January 1 2018 To date Yes
Management Co. Compliance and
Ltd. Risk Control
702025 Annual Report of Zhejiang NHU Co. Ltd.
Whether
receive
Name of other Position in other Start date of term of End date of term of emoluments
Name of persons
entities entities office office and allowances
from other
entities
Pacific Securities Investment
Wang Yang December 1 2018 To date Yes
Co. Ltd. Banking Advisor
Henan Pingmei
Shenma Private
Wang Yang Equity Fund Director March 1 2021 To date No
Management Co.Ltd.Guangdong Yikang
Independent
Wang Yang Health Industry January 1 2021 To date Yes
Director
Group Co. Ltd.Penalties imposed by regulatory authorities on current and outgoing directors and senior management of the Company in the past
three years
□ Applicable□ Not applicable
3. Remuneration of Directors and Senior Management
Decision-making procedure basis for determination and actual payment of remuneration of directors and senior management
(1) Decision-making procedure: According to the standards stipulated by the Company’s unified remuneration management
system the emoluments of the Company’s directors and senior management are determined based on the result of the regular
assessment under the Company’s performance appraisal mechanism. The allowance standard for independent directors shall be
deliberated and decided by the Board of Shareholders.
(2) Basis for determination: Emoluments of directors and senior management are determined based on the Company’s results of
operations and performance appraisal indicators.Remuneration of directors and senior management during the reporting period
712025 Annual Report of Zhejiang NHU Co. Ltd.
Unit: ten thousand yuan
Whether
Total pre-tax receive
emoluments emoluments
Name Gender Age Position Status
received from from related
the Company parties of the
Company
Hu Baifan Male 64 Chairman Incumbent 550.23 No
Hu Baishan Male 59 Vice Chairman President Incumbent 473.24 No
Director Vice President
Shi Guanqun Male 55 Secretary of the Board Incumbent 282.10 No
CFO
Wang Xuewen Male 57 Director Vice President Incumbent 320.85 No
Wang
Male 57 Director Incumbent 302.36 No
Zhengjiang
Zhou Guiyang Male 51 Director Incumbent 224.05 No
Yu Hongwei Male 55 Director Incumbent 230.08 No
Ji Jianyang Male 47 Independent Director Incumbent 12 No
Shen Yuping Male 69 Independent Director Incumbent 12 No
Wan Feng Male 50 Independent Director Incumbent 12 No
Wang Yang Male 47 Independent Director Incumbent 12 No
Zhang Liying Female 49 Vice President Incumbent 205.51 No
Total -- -- -- -- 2636.42 --
Basis for assessment of actual remuneration received by all Executed in accordance with the Company's relevant
directors and senior management at the end of the reporting remuneration and performance assessment management
period systems
Completion status of the assessment for actual remuneration
received by all directors and senior management at the end of Completed
the reporting period
Deferred payment arrangements for the remuneration actually
received by all directors and senior management at the end of Not applicable
the reporting period
Clawback and recovery of actual remuneration received by all
directors and senior management at the end of the reporting Not applicable
period
Explanation of other circumstances
? Applicable□ Not applicable
Among the remuneration that Hu Baishan Shi Guanqun Wang Xuewen Wang Zhengjiang Zhou Guiyang and Yu Hongwei
received from the Company the directors' remuneration was 0 yuan.
722025 Annual Report of Zhejiang NHU Co. Ltd.
V. Directors’ Performance of Duties During the Reporting Period
1. Directors’ attendance at meetings of the Board of Directors and Board of Shareholders
Directors’ attendance at meetings of the Board of Directors and Board of Shareholders
Whether
Number of Number of
directors
board Number of board Number of
Number of failed to Number of
meetings to board meetings board
Name of absences attend two shareholder
be present meetings attended meetings
directors from board consecutive meetings
during the attended on through attended by
meetings board attended
reporting site audiovisual proxy
meetings in
period means
person
Hu Baifan 7 7 0 0 0 No 4
Hu Baishan 7 7 0 0 0 No 4
Shi Guanqun 7 7 0 0 0 No 4
Wang
7 7 0 0 0 No 2
Xuewen
Wang
7 1 6 0 0 No 0
Zhengjiang
Zhou
7 1 5 1 0 No 1
Guiyang
Yu Hongwei 7 1 6 0 0 No 0
Ji Jianyang 7 1 5 1 0 No 4
Shen Yuping 7 2 5 0 0 No 4
Wan Feng 7 2 5 0 0 No 4
Wang Yang 7 1 6 0 0 No 3
Remarks on failure to attend two consecutive board meetings in person: Not applicable
2. Directors’Objections to Relevant Matters of the Company
Whether directors have raised objections to relevant matters of the Company
□ Yes□ No
Directors have not raised any objections to relevant matters of the Company during the reporting period.
3. Other Remarks on Directors’ Performance of Duties
Whether the directors’ recommendations on the Company were adopted
□Yes □ No
Remarks on the directors’ recommendations on the Company adopted or not adopted
During the reporting period the directors in strict accordance with the "Articles of Association" "Rules of Procedures of the
Board of Directors" and relevant laws and regulations actively attended board meetings and shareholder meetings performed their
duties with diligence put forward relevant opinions on significant governance and operation decisions in accordance with the
actual situation of the Company formed unanimous opinions after full communication and discussion and resolutely supervised
732025 Annual Report of Zhejiang NHU Co. Ltd.
and promoted the implementation of the resolutions made by the Board of Directors to ensure scientific timely and efficient
decision-making and safeguard the legitimate rights and interests of the Company and all shareholders.VI. Special Committees Under the Board of Directors During the Reporting Period
Important
Number
comments Other Details of
Name of of
Members Meeting date Content of the meeting and performance dispute (if
committees meetings
suggestions of duties any)
held
made
3 proposals including
"Proposal on
Wan Feng Hu
Remuneration Purchasing Directors
Baishan Shi
and Supervisors and Senior
Guanqun Ji 2 March 31 2025
Assessment Management Liability
Jianyang
Committee Insurance" were
Wang Yang
deliberated and
approved.
4 proposals including
Wan Feng Hu
Remuneration "Proposal on adjusting
Baishan Shi
and independent directors'
Guanqun Ji 2 December 5 2025
Assessment allowances" were
Jianyang
Committee deliberated and
Wang Yang
approved.The "2024
Hu Baifan Hu
Environmental Social
Baishan Wang
Strategy and Corporate
Xuewen Wan 4 March 31 2025
Committee Governance (ESG)
Feng Wang
Report" was deliberated
Yang
and approved.Hu Baifan Hu The "Proposal on
Baishan Wang Participating in the
Strategy
Xuewen Wan 4 April 23 2025 Auction for Land Use
Committee
Feng Wang Right" was deliberated
Yang and approved.The "Proposal on
Hu Baifan Hu Applying for
Baishan Wang Registration and
Strategy
Xuewen Wan 4 August 15 2025 Issuance of Debt
Committee
Feng Wang Financing Instruments"
Yang was deliberated and
approved.
2 proposals including
"Amendment to the
Hu Baifan Hu
Rules of Procedure of
Baishan Wang
Strategy the Strategy Committee
Xuewen Wan 4 December 5 2025
Committee of the Board of
Feng Wang
Directors" were
Yang
deliberated and
approved.
4 proposals including
Shen Yuping Ji
Audit "Summary of Internal
Jianyang 5 March 31 2025
Committee Audit of 2024 and
Wang Yang
Work Plan of 2025"
742025 Annual Report of Zhejiang NHU Co. Ltd.
Important
Number
comments Other Details of
Name of of
Members Meeting date Content of the meeting and performance dispute (if
committees meetings
suggestions of duties any)
held
made
were deliberated and
approved.
2 proposals including
"Summary of Internal
Audit for the First
Shen Yuping Ji
Audit Quarter of 2025 and
Jianyang 5 April 23 2025
Committee Work Plan for the
Wang Yang
Second Quarter of
2025" were deliberated
and approved.
2 proposals including
"Summary of Internal
Audit Work for the
Shen Yuping Ji
Audit First Half of 2025 and
Jianyang 5 August 15 2025
Committee Work Plan for the Third
Wang Yang
Quarter of 2025" were
deliberated and
approved.
2 proposals including
"Summary of Internal
Audit for the Third
Shen Yuping Ji
Audit Quarter of 2025 and
Jianyang 5 October 23 2025
Committee Work Plan for the
Wang Yang
Fourth Quarter of
2025" were deliberated
and approved.
4 proposals including
"Amendment to
Shen Yuping Ji
Audit Accounting Firm
Jianyang 5 December 5 2025
Committee Selection System"
Wang Yang
were deliberated and
approved.VII. Work of the Audit Committee
Whether the Audit Committee found any risks in the Company during its supervisory activities in the reporting period
□ Yes□ No
The Audit Committee has no objection to the supervised matters during the reporting period.
752025 Annual Report of Zhejiang NHU Co. Ltd.
VIII. Employees
1. Number of Employees Professional Workforce and Education Level
Number of active employees of the parent company at the end of
2067
the reporting period
Number of active employees of major subsidiaries at the end of the
9441
reporting period
Total number of active employees at the end of the reporting period 11508
Total number of employees receiving remuneration in the current
11508
period
Number of retired cadres and employees whose expenses borne by
36
the parent company and major subsidiaries
Professional workforce
Categories Number
Production staff 6991
Sales staff 223
Technical staff 2841
Finance staff 100
Administrative staff 1353
Total 11508
Education level
Categories Number
Doctoral degree or above 86
Master’s degree 1342
Bachelor’s degree 4120
Associate degree 3975
High school technical secondary school and below 1985
Total 11508
2. Remuneration Policy
The Company formulates the "Remuneration Management System" in accordance with the "Labor Law of the People’s Republic
of China" and relevant laws and regulations to provide competitive remuneration. A remuneration package is mainly composed of
base salary performance-based pay and benefits. The Company also offers employee incentives including incremental rewards
special contribution rewards incentives during the term of office and additional rewards for high performance beyond
expectations. The Company pays for five insurances and a housing fund and continuously improves employee satisfaction and
loyalty.
762025 Annual Report of Zhejiang NHU Co. Ltd.
3. Training Program
Rooted in its business the Company places continuous emphasis on talent development. Under the strategic goal of "building a
highland of talents" it consistently introduces capability enhancement programs in three key areas: talent structure talent
management and talent output. The Company implements specific methodologies and strategies effectively managing talent
selection and competition while establishing mechanisms to select the best and eliminate the weak. The Company makes efforts to
cultivate 5 types of talents: core technical talents skill talents management talents international talents and leadership talents.The Company enhances the development of its three key systems: the teaching system the teaching materials system and the
instructor system. It establishes job-based talent standards to advance training programs for all categories of employees. It
launches leadership training programs such as "Yangfan" "Qicheng" and "Yuanhang" for management cadres to effectively
improve their management ability and quality of management cadres. It also launches professional ability development initiatives
including equipment technology expert programs HSE internal trainer courses project leader training financial management
enhancement workshops sales training camps and procurement skills upgrade programs to strengthen technical staff skills. For
new staff the Company offers induction training to enhance their cultural identities and professional mindset and skills enabling
employees to quickly adapt to the workplace and enter growth pathways. It organizes on-the-job training skill level training
certification training for special equipment and special types of work to ensure that employees meet all regulations and skill
requirements. The company continuously increases investments in talent development resources. On the one hand it further
improves the development and utilization of internal lecturer resources and absorbs internal excellent experiences and practices for
a better enterprise succession; On the other hand it combines "inviting in" and "going out" to establish a cooperation mechanism
for training talents at different levels and expand their thinking and vision through external training exchange with advanced
enterprises study tours etc. The Company aims to make each employee get the opportunity to learn and the platform to grow so
that they can fulfill themselves and achieve personal growth along with the Company. Talents are the most valuable sustainable
and competitive strategic resources of the Company.
4. Labor Outsourcing
□Applicable□ Not applicable
IX. Profit Distribution and Conversion of Capital Reserve Into Share Capital
Profit distribution policy during the reporting period especially the establishment implementation or adjustment of cash dividend
policy
□Applicable □ Not applicable
772025 Annual Report of Zhejiang NHU Co. Ltd.
1. The Tenth Meeting of the Ninth Session of the Board of Directors held on December 18 2024 and the First Extraordinary
General Meeting of 2025 held on January 7 2025 deliberated and approved the Proposal on Special Dividend Scheme which was
implemented on January 22 2025 and completed. The special dividend plan: Based on the Company's existing total share capital
of 3073421680 shares a cash dividend of RMB 2.00 (including tax) per 10 shares was distributed to all shareholders totaling
RMB 614684336.00 (including tax).
2. The 11th Meeting of the Ninth Session of the Board of Directors held on April 11 2025 and the Annual General Meeting for
the year 2024 held on May 8 2025 deliberated and approved the "2024 Annual Profit Distribution Plan" which was implemented
and completed on May 21 2025. The annual equity distribution plan for 2024: Based on the Company's existing total share capital
of 3072153980 shares (deducting 1267700 repurchased shares) a cash dividend of RMB 5.00 (including tax) per 10 shares was
distributed to all shareholders totaling RMB 1536076990.00 (including tax).
3. The 14th Meeting of the Ninth Session of the Board of Directors held on August 26 2025 and the Second Extraordinary
General Meeting of 2025 held on September 12 2025 deliberated and approved the "2025 Interim Profit Distribution Plan" which
was implemented and completed on October 20 2025. The interim equity distribution plan for 2025: Based on the Company's
existing total share capital of 3058605988 shares (deducting 14815692 repurchased shares) a cash dividend of RMB 2.00
(including tax) per 10 shares was distributed to all shareholders totaling RMB 611721197.60 (including tax).Special remarks on cash dividend policy
Whether it complies with the Articles of Association or the
Yes
resolution of the Board of Shareholders:
Whether the criteria and proportion of dividends are clear and
Yes
unambiguous:
Whether relevant decision-making procedures and mechanisms
Yes
are complete:
Whether the independent directors have performed their duties
Yes
and responsibilities and played their due roles:
Specific reasons and the next steps it intends to take to enhance
the investor return level if the Company did not pay the cash Not applicable
dividend:
Whether small and medium-sized shareholders have adequate
opportunities to express their opinions and demands and
Yes
whether their legitimate rights and interests are adequately
protected:
In case of changes or adjustments of the cash dividend policy
whether the conditions and procedures are compliant and Not applicable
transparent:
The Company is profitable during the reporting period and the parent company’s profit available for distribution is positive but
no cash dividend distribution plan has been proposed
□ Applicable□ Not applicable
Profit distribution and conversion of capital reserve into share capital during the reporting period
□Applicable □ Not applicable
782025 Annual Report of Zhejiang NHU Co. Ltd.
Number of bonus shares for every 10 shares (shares) 0
Dividends for every 10 shares (yuan) (tax included)
10
[Note 1]
Number of shares increased for every 10 shares (shares) 0
Share capital base for distribution plan (shares) [Note 2] 3070283398
Amount of cash dividends (yuan) (tax included) [Note
3067947916.00
3]
Amount of cash dividends by other methods (such as
0
share repurchase) (yuan)
Total cash dividends (including those by other methods)
3067947916.00
(yuan)
Profit available for distribution (yuan) 6065699210.72
Proportion of total cash dividends (including those by
100%
other methods) to total profit distribution
Details on cash dividend
If a Company's development stage is not easily distinguishable but there are major capital expenditure
arrangements the proportion of cash dividends in this profit distribution shall be at least 20％.Details on proposals on profit distribution or conversion of capital reserve into share capital
(1) The interim profit distribution plan for 2025: Based on the Company's existing total share capital of
3058605988 shares (deducting 14815692 repurchased shares) a cash dividend of RMB 2.00 (including tax) per
10 shares was distributed to all shareholders totaling RMB 611721197.60 (including tax). This plan has been fully
implemented.
(2) The profit distribution plan at the end of 2025: Based on total share capital of 3070283398 shares which is
derived from the existing total share capital after deducting the shares held in the repurchase-dedicated securities
account [Note] the Company intends to distribute cash dividend of 8.00 yuan (tax included) and 0 bonus shares per
10 shares to all shareholders and no conversion of capital reserve into share capital will be carried out. The total
cash distribution amounted to RMB 2456226718.40 the remaining profit available for distribution to shareholders
will be carried forward to the next year.[Note] The Company’s total share capital is 3073421680 shares including 3138282 shares in the
repurchase-dedicated securities account. According to the “Rules on Share Repurchase of Listed Companies” shares
in the special account for repurchase of listed companies carry no right of profit distribution and conversion of
capital reserve into share capital.If the Company’s total share capital changes due to the conversion of convertible bonds share repurchase exercise
of equity incentives refinancing and listing of new shares etc. before the implementation of the profit distribution
proposal the total distribution will be adjusted accordingly based on the same distribution ratio.
792025 Annual Report of Zhejiang NHU Co. Ltd.
[Note 1] The dividends for every 10 shares in the above table include the dividend per 10 shares under the Company's 2025
interim dividend plan that has already been distributed.[Note 2] The share capital base of the distribution plan in the table above is the share capital base of the profit distribution plan as
of the end of 2025.[Note 3] The amount of cash dividends in the above table includes the amount distributed under the Company's 2025 interim
dividend plan.X. Implementation of Equity Incentive Plans Employee Stock Ownership Plans or Other
Employee Incentive Programs
□Applicable □ Not applicable
1. Equity Incentive
Not applicable.Equity incentives received by directors and senior management of the Company
□ Applicable□ Not applicable
Evaluation mechanism and incentives for senior management
Not applicable.
2. Implementation of Employee Stock Ownership Plans
□Applicable □ Not applicable
All active employee stock ownership plans during the reporting period
Proportion to the
Total number of total share capital
Number of shares held at the of the listed Sources of fund to
Scope of employees Changes
employees beginning of the company at the implement the plan
period (shares) beginning of the
period
Fourth phase of the
employee stock ownership
Legal
plan: Directors
remuneration of
supervisors senior
the employees
management of the
self-raised funds
Company and regular 627 29528181 Not applicable 0.96%
and other methods
employees of the
permitted by laws
Company and its holding
and administrative
subsidiaries or
regulations
wholly-owned subsidiaries
who meet the criteria
Fifth phase of the
employee stock ownership Legal
plan: Directors senior remuneration of
management of the the employees
Company and regular self-raised funds
602 0 Not applicable 0.00%
employees of the and other methods
Company and its holding permitted by laws
subsidiaries or and administrative
wholly-owned subsidiaries regulations
who meet the criteria
802025 Annual Report of Zhejiang NHU Co. Ltd.
Shareholdings of directors and senior management in the employee stock ownership plan during the reporting period
Proportion to the total
Number of shares held Number of shares held
share capital of the
at the beginning of the at the end of the
Name Position listed company at the
reporting period reporting period
end of the reporting
(shares) (shares)
period
Fourth phase of the
employee stock
ownership plan: Hu
Baifan Hu Baishan
Directors senior
Shi Guanqun Wang 2757480 0 0.00%
management
Xuewen Wang
Zhengjiang Zhou
Guiyang Yu Hongwei
Zhang Liying
Fifth phase of the
employee stock
ownership plan: Hu
Baifan Hu Baishan
Directors senior
Shi Guanqun Wang 0 0 0.00%
management
Xuewen Wang
Zhengjiang Zhou
Guiyang Yu Hongwei
Zhang Liying
Changes in the asset management agency during the reporting period
□ Applicable□ Not applicable
Changes in equity during the reporting period due to the disposal of shares by holders etc.□ Applicable□ Not applicable
Exercise of shareholders’ rights during the reporting period
Pursuant to the "Fourth Phase of Employee Stock Ownership Plan (Draft)" and "Fifth Phase of Employee Stock Ownership Plan"
such plan voluntarily waives the voting rights of holding shares in the Board of Shareholders of the Company while shares
acquired through the employee stock ownership plan carry no voting rights in the Board of Shareholders. During the reporting
period the employee stock ownership plan did not exercise the voting rights of holding shares in the Board of Shareholders but
still enjoyed the right to profit distribution.Other relevant situations and remarks of the employee stock ownership plan during the reporting period
□ Applicable□ Not applicable
Change in membership of the management committee of the employee stock ownership plan
□ Applicable□ Not applicable
Financial impact of employee stock ownership plan on the Company in the reporting period and related accounting treatments
□ Applicable□ Not applicable
Termination of employee stock ownership plan during the reporting period
□Applicable □ Not applicable
As of June 26 2025 all shares of the Company held under the fourth phase of the employee stock ownership plan have been sold.According to the relevant regulations the implementation of the fourth phase of the employee stock ownership plan has been
812025 Annual Report of Zhejiang NHU Co. Ltd.
completed and terminated. For details please refer to the "Announcement on Completion and Termination of the Sale of the
Fourth Phase of the Employee Stock Ownership Plan" (Announcement No. 2025-034) published by the Company on designated
information disclosure media and CNINFO Website (http://www.cninfo.com.cn) on June 26 2025.Other remarks:
1. Pursuant to proposals related to employee stock ownership plan including the "Fifth Phase of Employee Stock Ownership Plan
(Draft) of Zhejiang NHU Co. Ltd. and Summary" deliberated and approved by the 16th Meeting of the Ninth Session of the Board
of Directors and the 11th Meeting of the Ninth Session of the Board of Supervisors dated December 10 2025 and the Third
Extraordinary General Meeting of 2025 dated December 26 2025 the Company was agreed to implement the fifth phase of
employee stock ownership plan. The fifth employee stock ownership plan had 602 actual subscribers with actual subscription
funds paid of RMB 259.49 million; the controlling shareholder NHU Holding Group Co. Ltd. provided financing loans of RMB
259.49 million; the total funds of the fifth employee stock ownership plan amounted to RMB 518.98 million. As of January 26
2026 the Company received the "Securities Transfer Registration Confirmation" issued by the Shenzhen Branch of China
Securities Depository and Clearing Corporation Limited and the 21454310 shares held in the Company's repurchase-dedicated
securities account were transferred on January 23 2026 via non-trading transfer to the "Zhejiang NHU Co. Ltd. - Fifth Employee
Stock Ownership Plan" dedicated securities account representing 0.6981% of the company's share capital at a transfer price of
RMB 24.19 per share. The lock-up period for the shares obtained under the fifth employee stock ownership plan is 12 months
calculated from the date the Company announces that the last tranche of the target shares has been registered and transferred to
this plan’s name i.e. January 27 2026 - January 26 2027. The term of the target shares obtained under this shareholding plan is
24 months calculated from the date the Company announces that the registration and transfer of the last target share into the name
of this plan.
2. The number of shares held by directors and senior management in the employee stock ownership plan is measured based on the
proportion of shares of holders to the total shares of the employee stock ownership plan.
3. Other Employee Incentive Programs
□Applicable□ Not applicable
822025 Annual Report of Zhejiang NHU Co. Ltd.
XI. Construction and Implementation of Internal Control System During the Reporting
Period
1. Construction and Implementation of Internal Control System
The Company strictly adheres to the "Basic Standard for Enterprise Internal Control" and its accompanying guidelines
continuously optimizing the internal control management system. To adapt to business development needs and a dynamically
changing external environment the Company has strengthened internal checks and balances and process coordination across
functions establishing an internal-control management framework in which departments are both interconnected and able to
effectively constrain one another. After evaluation the Company's internal control design is sound and reasonable. The internal
controls are effectively executed and there is no material omission.During the reporting period the Company revised and improved its internal management system based on the actual work
situation and changes in the internal and external environment including 174 new systems and 133 revised rules and regulations.Including "Quality Management Manual" "Customer Credit Management Measures" "Production Anomaly and Information
Transfer Management Measures" "Production Planning and Production-Supply-Sales Scheduling Management Measures" "Legal
Dispute Case Management Measures" "Sales Plan Management Measures" "Import and Export Business Improvement
Mechanisms and Process Control System" "Project Management System" "Comprehensive Budget Management System" and so
on so as to improve the Company's management and business processes and further optimize the Company's internal control
management.
2. Details on Material Deficiencies in Internal Control Identified During the Reporting Period
□ Yes□ No
XII. Management Control in Subsidiaries During the Reporting Period
Problems
Integration Progress of Progress of Follow-up
Name of companies encountered in Solutions adopted
plan integration solutions solutions
integration
Zhejiang NHU Not Not Not
Not applicable Not applicable Not applicable
Holdings Co. Ltd. applicable applicable applicable
NHU North Not Not Not
Not applicable Not applicable Not applicable
America LLC applicable applicable applicable
NHU BESLENME
GIDA SANAYi VE Not Not Not
Not applicable Not applicable Not applicable
TiCARET applicable applicable applicable
LiMiTED SIRKETI
Whether abnormalities exist in the management and control of subsidiaries
□ Yes□ No
832025 Annual Report of Zhejiang NHU Co. Ltd.
XIII. Internal Control Assessment Report or Internal Control Audit Report
1. Internal Control Assessment Report
Date of report April 16 2026
Please refer to the "Internal Control Self-Assessment Report of 2025 of Zhejiang
Full text of the report
NHU Co. Ltd." disclosed on CNINFOWebsite on April 16 2026 for details.Proportion of the total assets of entities
included in the assessment scope to the
100.00%
total assets in the Company’s
consolidated financial statements
Proportion of the operating revenue of
entities included in the assessment scope
to the operating revenue in the 100.00%
Company’s consolidated financial
statements
Criteria for identifying deficiencies
Categories Financial reporting Non-financial reporting
Indicators of material deficiencies in
financial reporting include: (1) fraud by
directors and senior executives; (2)
correction of published financial reports The following circumstances are
by the Company; (3) discovery by the identified as indicators of material
auditor of a material misstatement in the deficiencies while others are
current financial report that was not respectively identified as indicators of
detected by internal control in the course significant deficiencies or general
of operation; and (4) ineffective deficiencies according to the degree of
monitoring of internal control by the impact: (1) lack of democratic or
Company. Indicators of significant scientific decision-making procedures
deficiencies in financial reporting leading to decision-making errors; (2)
Qualitative criteria include: (1) failure to select and apply violation of laws and regulations such as
accounting policies in accordance with environmental pollution failure to report
CASBEs; (2) failure to establish or disclose information in accordance
anti-fraud procedures and controls; and with regulations; (3) loss of executives or
(3) individual or multiple deficiencies in technical personnel in key positions; (4)
the financial reporting process that internal control evaluation stating that
although not meeting the criteria for material or significant deficiencies have
determining a material deficiency affect not been rectified; (5) lack of system
the objective of integrity and accuracy. control or systemic failure in important
General deficiencies in financial businesses.reporting are control deficiencies other
than the above-mentioned material and
significant deficiencies.The Company uses 5% of profit before The Company uses 5% of profit before
tax as the overall materiality of the tax as the overall materiality of the
financial statements. A material financial statements. A material
deficiency is identified when the deficiency is identified when the
potential misstatement is greater than or potential misstatement is greater than or
equal to the overall materiality. A equal to the overall materiality. A
Quantitative criteria significant deficiency is identified when significant deficiency is identified when
the potential misstatement is less than the the potential misstatement is less than the
overall materiality but greater than or overall materiality but greater than or
equal to 20% of the overall materiality. A equal to 20% of the overall materiality. A
general deficiency is identified when the general deficiency is identified when the
potential misstatement is less than 20% misstatement is less than 20% of the
of the overall materiality. overall materiality.
842025 Annual Report of Zhejiang NHU Co. Ltd.
Number of material deficiencies in
0
internal control over financial reporting
Number of material deficiencies in
internal control over non-financial 0
reporting
Number of significant deficiencies in
0
internal control over financial reporting
Number of significant deficiencies in
internal control over non-financial 0
reporting
2. Internal Control Audit Report
□Applicable □ Not applicable
Audit opinion paragraph in the internal control audit report
In our opinion Zhejiang NHU Co. Ltd maintained in all material respects effective internal control over financial reporting as of
December 31 2025 in accordance with the "Basic Standard for Enterprise Internal Control" and related regulations.Disclosure of the internal control audit report Disclosure
Date of report April 16 2026
For details please refer to "Internal Control Audit Report of
Full text of the report
Zhejiang NHU Co. Ltd." disclosed on CNINFOWebsite.Opinion type of internal control audit report Standard unqualified opinion
Whether there are material deficiencies in the non-financial
No
reporting
Whether the accounting firm has issued an internal control audit report with non-standard opinions
□ Yes□ No
Whether the internal control audit report issued by the accounting firm is consistent with the opinion of the self-assessment report
of the Board of Directors
□Yes □ No
Whether a non-standard audit opinion on internal control was issued for the reporting period or the previous year
□ Yes□ No
XIV. Self-Examination and Rectification Concerning the Special Action of Corporate
Governance
Not applicable.
852025 Annual Report of Zhejiang NHU Co. Ltd.
XV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental
information in accordance with the law
□Yes □ No
Number of enterprises included in the list of enterprises required to
disclose environmental information in accordance with the law 12
(number of companies)
Reference index for environmental information
No. Company name
disclosure reports
Zhejiang Enterprise Environmental Information
1 Zhejiang NHU Co. Ltd. Disclosure System website:
https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-search
Zhejiang Enterprise Environmental Information
Shangyu NHU Bio-Chem Co.
2 Disclosure System website:
Ltd.https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-search
Zhejiang Enterprise Environmental Information
Zhejiang NHU Pharmaceutical
3 Disclosure System website:
Co. Ltd.https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-search
Zhejiang Enterprise Environmental Information
Zhejiang NHU Specialty Materials
4 Disclosure System website:
Co. Ltd.https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-search
Zhejiang Enterprise Environmental Information
Shaoxing Yuchen New Materials
5 Disclosure System website:
Co. Ltd.https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-search
Shandong Enterprise Environmental Information
Shandong NHU Pharmaceutical Disclosure System website:
6
Co. Ltd. http://221.214.62.226:8090/EnvironmentDisclosure/enter
priseRoster/openPublicEnterpriseRosterPage
Shandong Enterprise Environmental Information
Shandong NHUAmino-acids Co. Disclosure System website:
7
Ltd. http://221.214.62.226:8090/EnvironmentDisclosure/enter
priseRoster/openPublicEnterpriseRosterPage
Shandong Enterprise Environmental Information
Shandong NHU Fine Chemical Disclosure System website:
8
Science and Technology Co. Ltd. http://221.214.62.226:8090/EnvironmentDisclosure/enter
priseRoster/openPublicEnterpriseRosterPage
Shandong Enterprise Environmental Information
Shandong NHU Fine Chemical
Disclosure System website:
9 Science and Technology Co. Ltd.
http://221.214.62.226:8090/EnvironmentDisclosure/enter
Vitamins Branch
priseRoster/openPublicEnterpriseRosterPage
Shandong Enterprise Environmental Information
Weifang Haicheng Thermal Power Disclosure System website:
10
Co. Ltd. http://221.214.62.226:8090/EnvironmentDisclosure/enter
priseRoster/openPublicEnterpriseRosterPage
Heilongjiang Enterprise Environmental Information
Disclosure System
Heilongjiang Xinhao Thermal
11 website: http://111.40.190.123:8082/eps/index/enterprise-
Power Co. Ltd.morecode=91231200MA1B0G117R&uniqueCode=149c
c76d634f4473&date=2025&type=true&isSearch=true
Heilongjiang Enterprise Environmental Information
Disclosure System website:
Heilongjiang NHU Biotechnology http://111.40.190.123:8082/eps/index/enterprise-listinpu
12
Co. Ltd. t=%E9%BB%91%E9%BE%99%E6%B1%9F%E6%96%
B0%E5%92%8C%E6%88%90%E7%94%9F%E7%89%
A9%E7%A7%91%E6%8A%80&area=
862025 Annual Report of Zhejiang NHU Co. Ltd.
XVI. Social Responsibilities
The Company upholds the corporate mission of "creating wealth employees success and benefit the society" and the business
philosophy of "create wealth balanced and sustainable". While maintaining sound business management it places great emphasis
on the Company's sustainable development in environmental social and corporate governance aspects. Please refer to the
announcement disclosed on CNINFO Website on April 16 2026 for the full text of the "2025 Environmental Social and
Corporate Governance (ESG) Report".XVII. Details on Consolidating Poverty Alleviation Achievements and Promoting Rural
Vitalization
Please refer to the announcement disclosed on CNINFO Website on April 16 2026 for the "2025 Environmental Social and
Corporate (ESG) Report".
872025 Annual Report of Zhejiang NHU Co. Ltd.
Section V Significant Events
I. Commitment Performance
1. Commitment Performance Fulfilled During the Reporting Period and Not Fulfilled as of the End of the
Reporting Period by Parties Related to Commitments Including the Actual Controller of the Company
Shareholders Related Parties Acquirers and the Company
□Applicable □ Not applicable
Parties making Types of Content of Time of Term of
Commitments Performance
commitments commitments commitments commitment commitment
Commitments
to shares None None None None None
reform
Commitments
made in reports
on acquisition None None None None None
and changes in
equity
Commitments
made in asset None None None None None
restructuring
The signing of
NHU Holding "Commitment on
Group Co. Ltd. No Engagement in
and Zhang Commitments Horizontal
Pingyi Shi on horizontal Competition" and
Cheng Yuan competition commitments on no
Strictly
Yizhong Hu related party engagement in June 25 2004 Long-term
performed
Baishan Shi transactions business activities
Guanqun and occupation result in horizontal
Wang Xuewen of funds competition with
Cui Xinrong operations of the
Wang Xulin Company after
listing
Commitments The Company’s
made in IPO or directors senior
refinancing management
committed to
perform their duties
Hu Baifan; Hu
faithfully and
Baishan; Shi
diligently to
Guanqun;
safeguard the
Wang Xuewen; January 12 Strictly
legitimate rights Long-term
Cui Xinrong; 2017 performed
and interests of the
Wang
Company and
Zhengjiang;
shareholders and
Zhou Guiyang
make the following
commitments in
accordance with the
relevant provisions
of the CSRC for the
882025 Annual Report of Zhejiang NHU Co. Ltd.
Parties making Types of Content of Time of Term of
Commitments Performance
commitments commitments commitments commitment commitment
full performance of
measures on filling
immediate returns:
1. not to transfer
benefits to other
entities or
individuals without
compensation or on
unfair terms and
not to use other
means to harm
benefits of the
Company; 2. to
impose restrictions
on duty
consumption of
member of the
Board of Directors
and senior
management; 3. not
to use assets of the
Company to engage
in investment or
consumption
activities not related
to duty
performance; 4. to
link remuneration
system formulated
by the Board of
Directors or
remuneration
committee to the
implementation of
measures on filling
immediate returns;
5. to link vesting
conditions of equity
incentive to be
published in the
future to the
implementation of
measures on filling
immediate returns.Not to interfere in
the Company’s
business and
management
Hu Baifan; activities in excess
January 12 Strictly
NHU Holding of authority; not to Long-term
2017 performed
Group Co. Ltd. encroach on the
benefits of the
Company; to
perform measures
on filling
892025 Annual Report of Zhejiang NHU Co. Ltd.
Parties making Types of Content of Time of Term of
Commitments Performance
commitments commitments commitments commitment commitment
immediate returns
in a practical way.Commitments
to equity None None None None None
incentive
Other
commitments
to minority None None None None None
shareholders of
the Company
Other
None None None None None
commitments
Whether commitments are performed on time Yes
If commitment performance is not fulfilled on time please explain detailed reasons for it and
Not applicable
the next work plans.
2. Realization of Profit Forecasts for the Company’s Assets or Projects and Its Reasons if There Are
Profit Forecasts for Assets or Projects and the Reporting Period Is Still in the Profit Forecast Period
□Applicable□ Not applicable
3. Company Performance Commitments
□Applicable□ Not applicable
II. Non-Operating Occupation of Funds Over Listed Companies by Controlling
Shareholders and Other Related Parties
□Applicable□ Not applicable
There is no non-operating occupation of funds over listed companies by controlling shareholders and other related parties during
the reporting period.III. Illegal External Guarantees
□Applicable□ Not applicable
There is no illegal external guarantee during the reporting period.IV. Explanations by the Board of Directors on the Latest "Non-Standard Audit Report"
□Applicable□ Not applicable
V. Statements by the Board of Directors and Independent Directors (If Applicable) on the
"Non-Standard Audit Report" Issued by the Accounting Firm During the Reporting Period
□Applicable□ Not applicable
902025 Annual Report of Zhejiang NHU Co. Ltd.
VI. Changes of Accounting Policies and Estimates or Significant Accounting Error
Correction Compared to the Financial Reports in the Previous Year
□Applicable□ Not applicable
The Company did not have any changes in accounting policies accounting estimates or corrections of significant accounting
errors during the reporting period.VII. Changes in the Scope of Consolidated Financial Statements Compared to the Financial
Reports in the Previous Year
□Applicable □ Not applicable
Equity acquisition Capital contribution
Name of companies Equity acquisition date Capital contribution
method proportion (%)
NHU North America LLC Establishment January 2 2025 USD 250000 100.00%
NHU BESLENME GIDA SANAYi VE
Establishment January 17 2025 USD 246900 100.00%
TiCARET LiMiTED SIRKETI
Zhejiang NHU Holdings Co. Ltd. Establishment April 15 2025 RMB 500000000 100.00%
VIII. Engagement and Dismissal of Accounting Firms
Domestic accounting firms engaged currently
Grant Thornton Certified Public Accountants (Special General
Name
Partnership)
Remuneration (thousand yuan) 2.1 million (pre-tax)
Continuous years for audit services 1 (year)
Certified Public Accountants Xu Hongjin Wang Yun
Certified Public Accountants’ continuous years for audit
1 (year)
services
Whether to engage another accounting firm instead in the current period
□Yes □ No
Whether to engage another accounting firm instead during the audit period
□ Yes□ No
Whether approval procedures were followed when changing the accounting firm
□Yes □ No
Detailed explanation of the reappointment or replacement of the accounting firm
The Company held the 16th Meeting of the Ninth Session of the Board of Directors on December 10 2025 and deliberated and
approved the Proposal on the Appointment of an Accounting Firm appointing Grant Thornton Certified Public Accountants
(Special General Partnership). Given that the appointment term of the 2024 audit firm Pan-China Certified Public Accountants
LLP has expired and that it has provided audit services to the Company for consecutive years and in order to better align with the
912025 Annual Report of Zhejiang NHU Co. Ltd.
Company's subsequent development needs and meet the audit requirements of the new stage and pursuant to the requirements of
the "Accounting Firm Selection System" after comprehensive evaluation and prudent consideration the Company proposes to
appoint Grant Thornton Certified Public Accountants (Special General Partnership) as the Company's 2025 audit firm responsible
for the 2025 financial audit and internal control audit for a one-year term.Engagement of accounting firms financial advisors or sponsors for audit of internal controls
□ Applicable□ Not applicable
IX. Delisting After Disclosure of the Annual Report
□Applicable□ Not applicable
X. Matters Related to Bankruptcy and Restructuring
□Applicable□ Not applicable
There are no matters related to bankruptcy and restructuring during the reporting period.XI. Significant Lawsuits and Arbitration
□Applicable□ Not applicable
There is no significant lawsuit or arbitration during the reporting period.XII. Penalties and Rectification
□Applicable□ Not applicable
There were no penalties or corrective actions taken by the Company during the reporting period.XIII. Integrity of the Company Its Controlling Shareholders and the Actual Controller
□Applicable□ Not applicable
XIV. Significant Related Party Transactions
1. Related Party Transactions Relevant to Daily Operations
□Applicable□ Not applicable
There is no related party transaction relevant to daily operations during the reporting period.
2. Related Party Transactions in Purchase or Sale of Assets or Equities
□Applicable□ Not applicable
There is no related party transaction in purchase or sale of assets or equities during the reporting period.
922025 Annual Report of Zhejiang NHU Co. Ltd.
3. Related Party Transactions in Joint External Investments
□Applicable□ Not applicable
There is no related party transaction in joint external investments during the reporting period.
4. Related Party Creditor’s Rights and Debts
□Applicable□ Not applicable
There are no related creditors’ rights or debts during the reporting period.
5. Transactions With Related Financial Companies
□Applicable□ Not applicable
There is no business of deposits loans credit granting or other financial businesses between the Company and its related financial
companies.
6. Transactions Between Financial Companies Controlled by the Company and the Company’s Related
Parties
□Applicable□ Not applicable
There is no business of deposits loans credit granting or other financial businesses between financial companies controlled by the
Company and the Company’s related parties.
7. Other Significant Related Party Transactions
□Applicable□ Not applicable
There is no other significant related party transaction during the reporting period.XV. Significant Contracts and Performance
1. Matters of Trusteeship Contracting and Leases
(1) Trusteeship
□Applicable□ Not applicable
There is no trusteeship during the reporting period.
(2) Contracting
□Applicable□ Not applicable
There is no contracting during the reporting period.
(3) Leases
□Applicable□ Not applicable
There is no lease during the reporting period.
932025 Annual Report of Zhejiang NHU Co. Ltd.
2. Significant Guarantees
□Applicable □ Not applicable
Unit: ten thousand yuan
External guarantees by the Company and its subsidiaries to third parties (guarantees to subsidiaries are excluded)
Announceme Whether Whether
Actual
nt date of Amount Actual Types of Counter the guarante
Guaranteed amount Collateral Period of
disclosure of guarantee commenceme guarantee guarantee guarante e for
parties guarantee s (if any) guarantee
amount d nt date s s (if any) e is related
d
guaranteed mature parties
None
Total amount of
Total amount of external actual external
guarantees approved during 0 guarantees during 0
the reporting period (A1) the reporting period
(A2)
Total balance of
Total amount of external
actual external
guarantees approved at the
0 guarantees at the end 0
end of the reporting period
of the reporting
(A3)
period (A4)
The Company’s guarantees to subsidiaries
Announceme Whether Whether
Actual
nt date of Amount Actual Types of Counter the guarante
Guaranteed amount Collateral Period of
disclosure of guarantee commenceme guarantee guarantee guarante e for
parties guarantee s (if any) guarantee
amount d nt date s s (if any) e is related
d
guaranteed mature parties
Shandong
NHU Fine Joint and March 24
Chemical March 24 several 2021 to
May 22 2020 50000 50000 0 0 Yes No
Science and 2021 liability December
Technology guarantee 25 2025
Co. Ltd.Heilongjiang Joint and August 26
NHU April 22 August 26 several 2021 to
40000 37000 0 0 Yes No
Biotechnolog 2021 2021 liability December
y Co. Ltd. guarantee 21 2025
December
Xinchang Joint and
162021
NHU April 22 December 16 several
40000 29000 0 0 to No No
Vitamins Co. 2021 2021 liability
December
Ltd. guarantee
152025
NHU (Hong Joint and June 5
Kong) several 2024 to
May 16 2024 50000 June 5 2024 104.03 0 0 Yes No
Trading Co. liability February20
Ltd. guarantee 2025
NHU (Hong Joint and August
Kong) August 29 several 29 2024
May 16 2024 50000 49.83 0 0 Yes No
Trading Co. 2024 liability to May 15
Ltd. guarantee 2025
NHU (Hong Joint and November
Kong) November 19 several 19 2024
May 16 2024 50000 36.55 0 0 Yes No
Trading Co. 2024 liability to August
Ltd. guarantee 19 2025
942025 Annual Report of Zhejiang NHU Co. Ltd.
Zhejiang Joint and June 24
NHU several 2022 to
May 11 2022 60000 June 24 2022 55000 0 0 No No
Pharmaceutic liability June 23
al Co. Ltd. guarantee 2027
Xinchang Joint and October
NHU October 14 several 10 2022
May 11 2022 20000 18000 0 0 No No
Vitamins Co. 2022 liability to October
Ltd. guarantee 14 2027
NHU (Hong Joint and June 12
Kong) several 2024 to
May 16 2024 50000 June 12 2024 7731.68 0 0 Yes No
Trading Co. liability June 12
Ltd. guarantee 2025
Shandong
NHU Fine Joint and June 6 19
Chemical several 2023 to
May 20 2023 58600 June 6 2023 58600 0 0 No No
Science and liability March 29
Technology guarantee 2028
Co. Ltd.NHU (Hong Joint and November
Kong) November 20 several 8 2023 to
May 20 2023 100000 56230.4 0 0 No No
Trading Co. 2023 liability November
Ltd. guarantee 8 2026
Zhejiang Joint and June 24
NHU Import several 2024 to
May 16 2024 25000 June 24 2024 15000 0 0 Yes No
& Export Co. liability June 23
Ltd. guarantee 2025
NHU (Hong Joint and August 1
Kong) August 1 several 2024 to
May 16 2024 50000 35144 0 0 No No
Trading Co. 2024 liability August 1
Ltd. guarantee 2027
NHU (Hong Joint and March 25
Kong) March 25 several 2025 to
May 16 2024 50000 66.81 0 0 Yes No
Trading Co. 2025 liability December
Ltd. guarantee 11 2025
NHU (Hong Joint and May 19
Kong) several 2025 to
May 9 2025 50000 May 19 2025 7731.68 0 0 No No
Trading Co. liability May 8
Ltd. guarantee 2026
NHU (Hong Joint and June 13
Kong) several 2025 to
May 9 2025 50000 June 13 2025 11.75 0 0 No No
Trading Co. liability February26
Ltd. guarantee 2026
Zhejiang Joint and July 8
NHU Import several 2025 to
May 9 2025 15000 July 8 2025 15000 0 0 No No
& Export Co. liability July 7
Ltd. guarantee 2026
NHU (Hong Joint and July 30
Kong) several 2025 to
May 9 2025 50000 July 30 2025 1.71 0 0 Yes No
Trading Co. liability December
Ltd. guarantee 9 2025
NHU (Hong Joint and August 6
Kong) August 6 several 2025 to
May 9 2025 50000 7028.8 0 0 No No
Trading Co. 2025 liability August 5
Ltd. guarantee 2026
NHU (Hong Joint and September
September 11
Kong) May 9 2025 50000 5.22 several 0 0 11 2025 Yes No
2025
Trading Co. liability to
952025 Annual Report of Zhejiang NHU Co. Ltd.
Ltd. guarantee December
252025
NHU (Hong Joint and October
Kong) October 28 several 28 2025
May 9 2025 50000 25.68 0 0 No No
Trading Co. 2025 liability to March
Ltd. guarantee 4 2026
NHU (Hong Joint and November
Kong) November 27 several 27 2025
May 9 2025 50000 4.35 0 0 No No
Trading Co. 2025 liability to April 8
Ltd. guarantee 2026
Total amount
Total amount of guarantees
actually guaranteed
approved for subsidiaries
240000.00 for subsidiaries 29876.00
during the reporting period
during the reporting
(B1)
period (B2)
Total balance of
Total amount of guarantees actual external
approved for subsidiaries at guarantees for
491974.40281776.66
the end of the reporting subsidiaries at the
period (B3) end of the reporting
period (B4)
Guarantees by subsidiaries to subsidiaries
Announceme Whether Whether
Actual
nt date of Amount Actual Types of Counter the guarante
Guaranteed amount Collateral Period of
disclosure of guarantee commenceme guarantee guarantee guarante e for
parties guarantee s (if any) guarantee
amount d nt date s s (if any) e is related
d
guaranteed mature parties
Total amount
Total amount of guarantees
actually guaranteed
approved for subsidiaries
0 for subsidiaries 0
during the reporting period
during the reporting
(C1)
period (C2)
Total balance of
Total amount of guarantees actual external
approved for subsidiaries at guarantees for
00
the end of the reporting subsidiaries at the
period (C3) end of the reporting
period (C4)
Total amount guaranteed by the Company (namely the sum of the above three items)
Total amount
Total amount of guarantees
actually guaranteed
approved during the reporting 240000.00 29876.00
during the reporting
period (A1+B1+C1)
period (A2+B2+C2)
Total balance of
Total amount of guarantees
actual guarantees at
approved at the end of the
491974.40 the end of the 281776.66
reporting period
reporting period
(A3+B3+C3)
(A4+B4+C4)
Proportion of the total guarantee balance (A4+B4+C4)
8.59%
to net assets of the Company
Including:
Balance of guarantees for shareholders the actual
0
controller and its related parties (D)
962025 Annual Report of Zhejiang NHU Co. Ltd.
Balance of debt guarantee directly or indirectly for
guaranteed parties with debt to asset ratio exceeding 168176.66
70% (E)
The amount of the total amount guaranteed exceeding
0
50% of net assets (F)
Total amount guaranteed of three items above (D+E+F) 168176.66
Remarks on unexpired guarantee contracts with
guarantee liabilities incurred or evidence indicating the
None
possibility of undertaking joint liquidation liabilities
during the reporting period (if applicable)
Remarks on external guarantee in violation of provisions
None
(if applicable)
Specific description of the use of composite guarantees: None
3. Entrusted Cash Assets Management
(1) Entrusted Financing
□Applicable □ Not applicable
Entrusted financing during the reporting period
Unit: ten thousand yuan
Balance of entrusted
Amount overdue and not
Product category Risk characteristics financing during the reporting
recovered
period
Bank financial products Own funds 215000 0
Details of the Company's activities as the sole entruster in commissioning financial institutions to conduct asset management or
investments in high-risk entrusted wealth-management products that have lower safety and poorer liquidity
□ Applicable□ Not applicable
(2) Entrusted Loans
□Applicable□ Not applicable
There is no entrusted loan during the reporting period.
4. Other Significant Contracts
□Applicable□ Not applicable
There is no other significant contract during the reporting period.XVI. Use of Raised Funds
□Applicable□ Not applicable
The Company had no use of raised funds during the reporting period.XVII. Other Significant Events
□Applicable □ Not applicable
972025 Annual Report of Zhejiang NHU Co. Ltd.
1. Progress of the Fourth Employee Stock Ownership Plan
The fourth phase of the employee stock ownership plan of the Company was deliberated and approved by the first extraordinary
general meeting in 2023 held on June 26 2023. The current employee stock ownership plan is managed by the Company itself
acquired and held by the Company through the secondary market purchase with a duration of not more than 24 months. Purchase
of the Company’s shares totaling 29528181 shares in the fourth phase of the employee stock ownership plan was finished on
September 25 2023 through bidding in the secondary market accounting for 0.9553% of total share capital with the transaction
amount totaling 479442157.08 yuan (excluding transaction fees) and average transaction price of 16.2368 yuan per share. The
lock-up period for the shares obtained under the fourth employee stock ownership plan is 12 months calculated from the date the
Company announces that the last tranche of the target shares has been registered and transferred to the fourth phase of the
employee stock ownership plan i.e. September 26 2023 - September 25 2024. As of June 26 2025 all shares of the Company
held under the fourth phase of the employee stock ownership plan have been sold. For details please refer to the "Announcement
on Completion and Termination of the Sale of the Fourth Phase of the Employee Stock Ownership Plan" (2025-034) published by
the Company on designated information disclosure media and CNINFO Website (http://www.cninfo.com.cn).(Note: On December 13 2024 the Company completed the cancellation of 17485676 repurchased shares reducing the total share
capital from 3090907356 to 3073421680. The proportion of shares held under the fourth phase employee stock ownership plan
was adjusted to 0.9607% of the current total share capital.)
2. Progress of Share Repurchases
Pursuant to the "Proposal on Share Repurchase" deliberated and approved by the 11th Meeting of the Ninth Session of the Board
of Directors dated April 11 2025 the Company was agreed to repurchase part of the public shares through centralized bidding
transactions with self-owned funds or special-purpose repurchase loans for the purpose of the equity incentive plan or employee
stock ownership plan. The repurchase amount in this time ranged from 300.00 million yuan to 600.00 million yuan and the price
should not exceed 32.00 yuan (inclusive) per share. The specific amount of shares to be repurchased and the proportion to the total
share capital are subject to the amount of shares actually repurchased at the expiration of the repurchase period. The
implementation period of share repurchase should not exceed 12 months from the date on which the Company's Board of Directors
deliberates and approves the share repurchase plan. As of December 31 2025 the Company has repurchased 24592592 shares
through centralized bidding transactions using a repurchase-dedicated securities account for repurchase accounting for 0.8002%
of total share capital. The highest price of shares was 25.18 yuan per share while the lowest price was 21.25 yuan per share and
the accumulated transaction amount was 556124778.51 yuan (transaction fees excluded). The repurchase has been completed.Such repurchase complied with relevant laws and regulations as well as the repurchase plan of the Company. For details please
982025 Annual Report of Zhejiang NHU Co. Ltd.
refer to the "Announcement on the Progress and Completion of the Company's Share Repurchase" (2026-001) published on the
designated information disclosure media and the CNINFO Website (http://www.cninfo.com.cn).
3. Apply for Registration and Issuance of Debt Financing Instruments
The 14th Meeting of the Ninth Session of the Board of Directors held on August 26 2025 and the Second Extraordinary General
Meeting of 2025 held on September 12 2025 deliberated and approved the "Proposal on Applying for Registration and Issuance
of Debt Financing Instruments". To meet the Company's rapid development funding needs optimize its financing structure and
reduce financing costs the Company intends to apply to the National Association of Financial Market Institutional Investors for
registration to issue non-financial enterprise debt financing instruments with an aggregate amount not exceeding RMB
3000000000 (inclusive). The types of instruments to be issued may include medium-term notes (maturities not exceeding 3
years) short-term financing notes (maturities not exceeding 1 year) and ultra-short-term financing notes (maturities not exceeding
270 days) and may be issued in multiple tranches. The proceeds from this offering are planned to be used for the Company's
production and operating activities including but not limited to project construction in the field of scientific and technological
innovation R&D investment repayment of interest-bearing debt and supplementing working capital. For details please refer to
the "Announcement on Applying for Registration and Issuance of Debt Financing Instruments" (2025-041) published on the
designated information disclosure media and the CNINFO Website (http://www.cninfo.com.cn).
4. Adjustment to Corporate Governance Structure
The 16th Meeting of the Ninth Session of the Board of Directors and the 11th Meeting of the Ninth Session of the Board of
Supervisors held on December 10 2025 and the Third Extraordinary General Meeting of 2025 held on December 26 2025
deliberated and approved the "Proposal on Amending the Articles of Association". Pursuant to the "Company Law" (effective July
1 2024) and the relevant laws and regulations issued by the CSRC including the "Transitional Arrangements for the
Implementation of Supporting Institutional Rules of the New Company Law" and the "Guidelines on Articles of Association for
Listed Companies (2025 Revision)" and in light of the Company's actual circumstances the current Articles of Association have
been revised. After this revision the Company will no longer set up a Board of Supervisors. The powers of the Board of
Supervisors as stipulated in the "Company Law" will be assumed by the Board of Directors' Audit Committee and Board of
Supervisors–related systems such as the "Rules of Procedure for the Board of Supervisors" will be abolished simultaneously.Please refer to the relevant announcements published on the designated information disclosure media and CNINFO Website
(http://www.cninfo.com.cn) on December 27 2025.
5. Progress of the Fifth Employee Stock Ownership Plan
992025 Annual Report of Zhejiang NHU Co. Ltd.
The fifth phase of the employee stock ownership plan of the Company was deliberated and approved by the third extraordinary
general meeting in 2025 held on December 26 2025. The current employee stock ownership plan is managed by the Company
itself acquired company shares repurchased through the Company's repurchase-dedicated securities account for repurchases
and/or obtained through purchases in the secondary market (including but not limited to block trades and centralized bidding
transactions) or by other means permitted by laws and regulations and the plan's duration will not exceed 24 months. The
Company's fifth employee stock ownership plan acquired by non-trade transfer 21454310 shares repurchased by the Company
representing 0.6981% of the company's total share capital. All were sourced from the aforementioned repurchased shares and the
transfer price was RMB 24.19 per share. The lock-up period for the shares obtained under the fifth employee stock ownership plan
is 12 months calculated from the date the Company announces that the last tranche of the target shares has been registered and
transferred to this plan’s name i.e. January 27 2026 - January 26 2027. For details please refer to the "Announcement on the
Progress of Implementation of the Fifth Employee Stock Ownership Plan" (2026-003) published by the Company on designated
information disclosure media and CNINFO Website (http://www.cninfo.com.cn).XVIII. Significant Events of Subsidiaries of the Company
□Applicable □ Not applicable
The Company's wholly owned subsidiary Shandong NHU Fine Chemical Science and Technology Co. Ltd. absorbed and
merged its wholly owned subsidiary Shandong NHU Vitamins Co. Ltd. After the absorption merger Shandong NHU Fine
Chemical Science and Technology Co. Ltd. continued as the surviving entity and its registered capital was changed from RMB
400000000 to RMB 900000000. Shandong NHU Vitamins Co. Ltd. was deregistered and all of its assets creditors’ rights and
debts were assumed by Shandong NHU Fine Chemical Science and Technology Co. Ltd. The related industrial and commercial
change registration procedures were completed in February 2025. This merger by absorption does not constitute a related-party
transaction nor does it constitute a major asset restructuring situation as stipulated in the "Measures for the Administration of
Major Asset Restructurings of Listed Companies". According to the relevant provisions of the "Shenzhen Stock Exchange Stock
Listing Rules" because this absorption-type merger is a transaction between controlling entities within the scope of the Company's
consolidated financial statements it may be exempt from performing the procedures required by those rules.
1002025 Annual Report of Zhejiang NHU Co. Ltd.
Section VI Movements in Shares and Conditions of Shareholders
I. Movements in Shares
1. Details
Unit: Shares
Before Movements After
Conversion
Items Issue of Bonus of capital
Quantity % to total new Others Subtotal Quantity % to total
shares reserve
shares
into shares
I. Restricted
364097521.18%150000150000365597521.19%
shares
1.
State-owned
shares
2. Held by
state-owned
legal persons
3. Held by
other
364097521.18%150000150000365597521.19%
domestic
parties
Including:
Held by
domestic
legal persons
Held by
domestic
364097521.18%150000150000365597521.19%
natural
persons
4. Held by
overseas
parties
Including:
Held by
overseas
legal persons
Held by
overseas
natural
persons
II.Unrestricted 3037011928 98.82% -150000 -150000 3036861928 98.81%
shares
1. RMB
ordinary 3037011928 98.82% -150000 -150000 3036861928 98.81%
shares
1012025 Annual Report of Zhejiang NHU Co. Ltd.
Before Movements After
Conversion
Items Issue of Bonus of capital
Quantity % to total new Others Subtotal Quantity % to total
shares reserve
shares
into shares
2.
Domestically
listed foreign
shares
3. Overseas
listed foreign
shares
4. Others
III. Total
3073421680100.00%3073421680100.00%
shares
Reason for movements
□Applicable □ Not applicable
Based on confidence in the Company's continued stable development and recognition of its value and actively implementing the
"Increase in Both Quality and Returns" action plan to boost investor confidence and maintain market stability Mr. Shi Guanqun
Company Director Secretary of the Boar Vice President and CFO increased his holdings in the Company by 200000 shares on
June 17 2025 representing 0.0065% of the Company's total share capital through secondary market competitive bidding
transactions. Before this increase in holdings Mr. Shi Guanqun directly held 10477838 shares of the Company representing
0.34% of the Company's total share capital. After the completion of this increase in holdings Mr. Shi Guanqun directly holds
10677838 shares representing 0.35% of the Company's total share capital.
Approval on movements in shares
□ Applicable□ Not applicable
Transfer of shares
□ Applicable□ Not applicable
Effect of movements in shares on the financial index of the preceding year and preceding period such as basic earnings per share
and diluted earnings per share net assets per share attributable to common shareholders
□ Applicable□ Not applicable
Other contents that the Company considered as necessary or securities regulatory authorities required disclosure
□ Applicable□ Not applicable
1022025 Annual Report of Zhejiang NHU Co. Ltd.
2. Movement in Restricted Stocks
□Applicable □ Not applicable
Unit: Shares
Opening Decrease due to Reason for Date of
Shareholders Increase Closing balance
balance unlocking restriction unlocking
75% of the total
Locked up for shares held by
the shares are the senior
Shi Guanqun 7858378 150000 8008378 held by the management
senior are locked up
management on an annual
basis
Total 7858378 150000 0 8008378 -- --
II. Issuance and Listing of Securities
1. Issuance of Securities (Preferred Stocks Excluded) Within the Reporting Period
□Applicable□ Not applicable
2. Movements in Total Shares of the Company and Structure of Shareholders Movements in Structure of
Assets and Liabilities of the Company
□Applicable□ Not applicable
3. Existing Shares Held by Internal Employees
□Applicable□ Not applicable
III. Shareholders and Actual Controllers
1. Number of Shareholders of the Company and Their Shareholding Conditions
Unit: Shares
Total Total
number of number of
common shareholders
Total number of
shareholders of preferred
Total number of shareholders of preferred
as of the stocks with
common stocks with voting rights
end of the voting rights
shareholders at 78318 78970 0 restored at the end of the 0
month prior restored at
the end of the month prior to the annual
to the the end of
reporting period report disclosure date (if
annual the reporting
any) (see Note 8)
report period (if
disclosure any) (see
date Note 8)
Shareholders with holding proportion over 5% or the top 10 shareholders with largest holding proportions (excluding shares lent
through refinancing)
1032025 Annual Report of Zhejiang NHU Co. Ltd.
Quantity of Shares pledged marked
Movements
shares at the Quantity of Quantity of or frozen
Nature of Holding during the
Shareholders end of the restricted unrestricted
shareholders proportion reporting
reporting shares shares
period Condition Quantity
period
Domestic
NHU Holding Not
non-state-owned 50.08% 1539232431 0 0 1539232431 0
Group Co. Ltd. applicable
legal person
Hong Kong
Securities Overseas legal Not
5.82%1789335884110992901789335880
Clearing person applicable
Company Limited
National Social
Not
Security Fund Others 0.91% 28000080 -12999920 0 28000080 0
applicable
No.503 Portfolio
Shanghai
Chongyang
Strategic
Investment Co. Not
Others 0.88% 26930663 0 0 26930663 0
Ltd. － applicable
Chongyang
Strategic Huizhi
Fund
Industrial and
Commercial Bank
of China Limited
-
Huatai-Pinebridge Not
Others 0.82% 25320881 -1305660 0 25320881 0
CSI 300 applicable
Exchange-Traded
Open-Ended
Index Securities
Investment Fund
China
Construction
Bank Corporation
- E Fund CSI 300
Medical and Not
Others 0.67% 20522382 -7976200 0 20522382 0
Health applicable
Exchange-Traded
Open-Ended
Index Securities
Investment Fund
Shanghai
Chongyang
Strategic
Investment Co. Not
Others 0.62% 19150780 0 0 19150780 0
Ltd. － applicable
Chongyang
Strategic Caizhi
Fund
China
Construction
Bank Corporation Not
Others 0.59% 18101731 -295500 0 18101731 0
- E Fund CSI 300 applicable
Exchange-Traded
Open-Ended
1042025 Annual Report of Zhejiang NHU Co. Ltd.
Index Initiated
Securities
Investment Fund
Shanghai
Chongyang
Strategic
Investment Co. Not
Others 0.49% 15096694 0 0 15096694 0
Ltd. － applicable
Chongyang
Strategic Juzhi
Fund
Domestic Not
Hu Baishan 0.47% 14595929 0 10946947 3648982 0
natural person applicable
Strategic investors or ordinary
legal persons that became one of Shanghai Chongyang Strategic Investment Co. Ltd. － Chongyang Strategic Huizhi Fund
the top 10 shareholders due to the became one of the top 10 shareholders due to its participation in private placement of shares in
allotment of new shares (if any) 2017.(see Note 3)
The above shareholder Hu Baishan is the Director of NHU Holding Group Co. Ltd. The
Remarks on relationships or
Company does not know whether other shareholders have relationships and whether they are
concerted action of the abovepersons acting in concert as defined in “Administration of the Takeover of Listed CompaniesshareholdersProcedures”.Remarks on proxy voting and
waiver of voting right of the above Not applicable
shareholders
Special remarks on the top 10
Zhejiang NHU Co. Ltd.’s repurchase-dedicated securities account is attributable to the top 10
shareholders with
shareholders as of the end of the reporting period who however did not participate in the
repurchase-dedicated securities
presentation of such balances.accounts (if any) (see Note 10)
Top 10 shareholders with unrestricted shares (excluding shares lent through refinancing and shares locked by senior management)
Category of shares
Shareholders Quantity of unrestricted shares at the end of the reporting period Category
Quantity
of shares
RMB
NHU Holding Group Co. Ltd. 1539232431 ordinary 1539232431
shares
RMB
Hong Kong Securities Clearing
178933588 ordinary 178933588
Company Limited
shares
RMB
National Social Security Fund
28000080 ordinary 28000080
No.503 Portfolio
shares
Shanghai Chongyang Strategic RMB
Investment Co. Ltd. － 26930663 ordinary 26930663
Chongyang Strategic Huizhi Fund shares
Industrial and Commercial Bank of
China Limited - Huatai-Pinebridge RMB
CSI 300 Exchange-Traded 25320881 ordinary 25320881
Open-Ended Index Securities shares
Investment Fund
China Construction Bank
Corporation - E Fund CSI 300 RMB
Medical and Health 20522382 ordinary 20522382
Exchange-Traded Open-Ended shares
Index Securities Investment Fund
1052025 Annual Report of Zhejiang NHU Co. Ltd.
Shanghai Chongyang Strategic RMB
Investment Co. Ltd. － 19150780 ordinary 19150780
Chongyang Strategic Caizhi Fund shares
China Construction Bank
Corporation - E Fund CSI 300 RMB
Exchange-Traded Open-Ended 18101731 ordinary 18101731
Index Initiated Securities shares
Investment Fund
Shanghai Chongyang Strategic RMB
Investment Co. Ltd. － 15096694 ordinary 15096694
Chongyang Strategic Juzhi Fund shares
Shanghai Chongyang Strategic RMB
Investment Co. Ltd. － 13923232 ordinary 13923232
Chongyang Strategic Yingzhi Fund shares
Remarks on relationships or
concerted action between the top
10 shareholders with unrestricted The above shareholder Hu Baishan is the Director of NHU Holding Group Co. Ltd. The
shares and between the top 10 Company does not know whether other shareholders have relationships and whether they areshareholders with unrestricted persons acting in concert as defined in “Administration of the Takeover of Listed Companiesoutstanding shares and the top 10 Procedures”.shareholders with largest holding
proportions
Shanghai Chongyang Strategic Investment Co. Ltd. － Chongyang Strategic Huizhi Fund
holds 26930563 shares through the client account of collateral securities for margin trading of
Remarks on the top 10 common Guotai Haitong Securities Co. Ltd.; Shanghai Chongyang Strategic Investment Co. Ltd. －
shareholders participating in Chongyang Strategic Caizhi Fund holds 19150780 shares through client account of collateral
securities margin trading (if any) securities for margin trading of China Merchants Securities Co. Ltd.; Shanghai Chongyang
(see Note 4) Strategic Investment Co. Ltd. － Chongyang Strategic Juzhi Fund holds 15096694 shares
through client account of collateral securities for margin trading of China Merchants Securities
Co. Ltd.Note: Zhejiang NHU Co. Ltd.’s repurchase-dedicated securities account is attributable to the top 10 shareholders with the largest
balances in unrestricted shares as of the end of the reporting period who however did not participate in the presentation of such
balances.Participation of shareholders holding a proportion of over 5% the top 10 shareholders and the top 10 shareholders of unlimited
outstanding shares in the refinancing business for lending shares
□ Applicable□ Not applicable
Changes in the top 10 shareholders and top 10 shareholders of unlimited outstanding shares compared to the previous period due
to lending/returning of shares via the refinancing business
□ Applicable□ Not applicable
Did the top 10 common shareholders and the top 10 shareholders of unrestricted common shares perform agreed repurchase
transactions during the reporting period
□ Yes□ No
The top 10 common shareholders and the top 10 shareholders of unrestricted common shares did not perform agreed repurchase
transactions during the reporting period.
1062025 Annual Report of Zhejiang NHU Co. Ltd.
2. Controlling Shareholders
Nature of controlling shareholders: Natural person holding
Category of controlling shareholders: Legal person
Legal
Controlling
representative/Head of Date of establishment Organization code Main business scope
shareholders
the entity
Industrial investments
goods import and
export production and
NHU Holding Group sales of chemical
Hu Baifan February 14 1989 91330624146424869T
Co. Ltd. products
pharmaceutical
intermediates chemical
materials
Equity conditions of
other domestic and
overseas listed
companies that the
NHU Holding Group Co. Ltd. directly holds 36.73% of the shares of Beijing Front Pharma CO. Ltd.controlling
shareholders control or
participate in during
the reporting period
Changes of controlling shareholders during the reporting period
□ Applicable□ Not applicable
The Company has no changes of controlling shareholders during the reporting period.
1072025 Annual Report of Zhejiang NHU Co. Ltd.
3. Actual Controllers and Persons Acting in Concert
Nature of actual controller: Domestic natural persons
Category of actual controller: Natural persons
Whether has permanent
Relationship with the actual
Actual controller Nationality residence in other countries or
controller
regions
Hu Baifan Self China No
Person acting in concert
(including the following
Hu Baishan China No
forms: agreement relatives
common control)
Mr. Hu Baifan Chairman of the Board is a Chinese born in 1962 who has no permanent
residence in foreign countries or regions. He completed postgraduate studies in Business
Administration at Zhejiang University and he is a Professor-level Senior Economist Member of
the Communist Party of China. He also serves as the Chairman of NHU Holding Group Co. Ltd.and its holding subsidiary Shaoxing Yuexiu Education Development Co. Ltd. and Director of
Main occupation and position Beijing NHU Real Estate Holding Co. Ltd. and Beijing Front Pharma CO. Ltd.Mr. Hu Baishan Vice Chairman and President is a Chinese born in 1967 who has no permanent
residence in foreign countries or regions. He has a master’s degree in the EMBA program of
Zhejiang University and he is a Senior Engineer Member of the Communist Party of China. He
also serves as the Director of NHU Holding Group Co. Ltd. and Shaoxing Yuexiu Education
Development Co. Ltd.Domestic and overseas listed
Beijing Front Pharma CO. Ltd. actually controlled by Hu Baifan was listed on the Shanghai
companies once been under
Stock Exchange mainboard in 2022.their control within a decade
Changes of the actual controller within the reporting period
□ Applicable□ Not applicable
The Company has no changes in actual controller within the reporting period.
1082025 Annual Report of Zhejiang NHU Co. Ltd.
Block diagram of the title and control relationships between the Company and the actual controller
Brother
Hu Baifan Hu Baishan
Xinchang County Chunhe Investment
Management Partnership (Limited Partnership)
NHU Holding Group Co. Ltd.Zhejiang NHU Co. Ltd.Whether the actual controller controls the Company through trust or other asset management methods
□ Applicable□ Not applicable
4. Whether the Quantity of Accumulated Pledged Shares of the Company Held by the Controlling
Shareholders or the Largest Shareholder and His Person Acting in Concert Accounts for Over 80% of
Total Shares of the Company Held by Them
□Applicable□ Not applicable
5. Other Institutional Shareholder With Holding Proportion Over 10%
□Applicable□ Not applicable
6. Decrease in Holding Proportion of Restricted Shares of Controlling Shareholders Actual Controllers
Reorganizing Parties and Other Undertaking Entities
□Applicable□ Not applicable
109
Partnership (Limited Partnership)
Xinchang County Heji Investment
Management
Partnership (Limited Partnership)
Xinchang County Huiji Investment
Management
Partnership (Limited Partnership)
Xinchang County Chengji Investment
Management
Partnership (Limited Partnership)
Xinchang County Xinji Investment
Management2025 Annual Report of Zhejiang NHU Co. Ltd.IV. Actual Implementation of Share Repurchase During the Reporting Period
Actual progress of share repurchase
□Applicable □ Not applicable
Proportion of
repurchased
Quantity of Amount of Quantity of shares to the
Date of
shares to be % to total share shares to be Repurchase repurchased target shares
proposal Purposes
repurchased capital repurchased (ten period shares (unit: involved in the
disclosure
(unit: shares) thousand yuan) shares) equity
incentive plan
(if any)
Not exceeding
12 months
For
from the date
implementing
of approval at
the equity
the 11th
9375000- incentive plan
April 15 2025 0.31%-0.61% 30000-60000 Meeting of the 24592592
18750000 or employee
Ninth Board of
stock
Directors: from
ownership
April 11 2025
plan
to April 10
2026
Implementation progress of shareholding reduction for shares repurchased through centralized bidding transactions
□ Applicable□ Not applicable
V. Preferred Stocks
□Applicable□ Not applicable
The Company has no preferred stocks during the reporting period.
1102025 Annual Report of Zhejiang NHU Co. Ltd.
Section VII Bonds
□Applicable□ Not applicable
1112025 Annual Report of Zhejiang NHU Co. Ltd.
Section VIII Financial Report
I. Audit Report
Audit opinion Standard unqualified opinion
Audit report signing date April 14 2026
Grant Thornton Certified Public Accountants (Special General
Accounting firm
Partnership)
Audit report document number Grant Thornton Audit (2026) No. 332A011341
Signatory Certified Public Accountants Xu Hongjin Wang Yun
Audit Report
To the Shareholders of Zhejiang NHU Co. Ltd.:
I. Audit Opinion
We have audited the accompanying financial statements of Zhejiang NHU Co. Ltd. (the “NHU”) which comprise the
consolidated and parent company balance sheets as at December 31 2025 the consolidated and parent company income
statements the consolidated and parent company cash flow statements and the consolidated and parent company statements of
changes in shareholders’ equity for the year then ended as well as notes to financial statements.In our opinion the attached financial statements present fairly in all material respects the financial position of the NHU as at
December 31 2025 and of its financial performance and its cash flows for the year then ended in accordance with China
Accounting Standards for Business Enterprises.II. Basis for Audit Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further
described in the Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements section of our report. In
accordance with the independence requirements of auditing public interest entities in the China Code of Ethics for Certified Public
Accountants and the Independence Standards for Chinese Certified Public Accountants (where applicable) we are independent of
NHU and have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial
statements of 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.
1122025 Annual Report of Zhejiang NHU Co. Ltd.
(I) Revenue Recognition
For relevant disclosure details please refer to item V 25 of the financial statements item VII 41 of the financial report in this
section and item XVII 1 of the financial report in this section.
1. Key Audit Matters
The NHU's operating revenue mainly comes from the manufacturing and sales of nutrition aroma chemicals new materials etc.In 2025 the operating revenue of the NHU amounted to RMB 22251361900.As operating revenue is one of the key performance indicators of the NHU there might be inherent risks that the Company’s
management (the “Management”) adopts inappropriate revenue recognition to achieve specific goals or expectations. Therefore
we have identified revenue recognition as a key audit matter.
2. Responsive Audit Procedures
Our main audit procedures for revenue recognition are as follows:
(1) We obtained understandings of key internal controls related to revenue recognition assessed the design effectiveness of these
internal controls and tested the operating effectiveness of key internal controls;
(2) We selected samples of sales contracts for inspection and inquired of Management analyzed the principal terms or conditions
of the contracts to determine whether the timing of transfer of control of the related goods or services complies with the provisions
of the China Accounting Standards for Business Enterprises and NHU's business model and reviewed whether the related
accounting policies have been applied consistently;
(3) We performed analysis procedure on operating revenue and gross margin by month product client etc. so as to identify
whether there are significant or abnormal fluctuations and find out the reason of fluctuations;
(4) For revenue from domestic sales we checked supporting documents related to revenue recognition including sales contracts
orders sales invoices outbound delivery notes delivery lists shipping documents delivery receipts etc. to assess whether sales
revenue has been recognized in accordance with the revenue recognition accounting policy;
(5) For revenue from overseas sales we obtained information from Electron Port and checked it with accounting records and
checked supporting documents related to revenue recognition including sales contracts bills of clearance waybills sales invoices
etc. to assess whether sales revenue has been recognized in accordance with the revenue recognition accounting policy;
(6) Combining the audit of accounts receivable and contract liabilities we obtained customers' business registration information
through public information channels inquired with relevant NHU personnel and based on the characteristics and nature of
customer transactions selected samples for external confirmations to verify the authenticity of sales;
1132025 Annual Report of Zhejiang NHU Co. Ltd.
(7) For sales revenue recognized around the balance sheet date we reconciled with supporting documents such as delivery notes
and obtained customer delivery notes before and after the balance sheet date to cross-check with the recorded sales revenue and
assessed whether the operating revenue was recognized in the appropriate period;
(8) We examined whether any sales returns occurred for NHU after the balance sheet date. For significant sales returns we
checked the related supporting documents to assess whether the revenue was recorded in the appropriate accounting period;
(9) We checked whether information related to operating revenue had been presented appropriately in the financial statements.
(II) Existence and Integrity of Cash and Bank Balances
For relevant disclosure details please refer to item VII 1 of the financial report in this section.
1. Key Audit Matters
As of December 31 2025 the NHU’s cash and bank balances total 7966.2701 million yuan which is one of the major assets of
the Company. As the amount of cash and bank balances is significant and considering that the security of their custody as well as
the accuracy and integrity of their presentation have a significant influence on financial statements we have identified existence
and integrity of cash and bank balances as a key audit matter.
2. Responsive Audit Procedures
Our main audit procedures for existence and integrity of cash and bank balances are as follows:
(1) We obtained understandings of key internal controls related to management of cash and bank balances assessed the design
effectiveness of these internal controls and the operating effectiveness of key internal controls;
(2) We obtained the “List of Opened Bank Settlement Accounts” compared it with the accounts on NHU's books checked the
integrity of the bank accounts and analyzed whether the purposes for opening accounts and the account distribution are
reasonable;
(3) We obtained and checked bank statements and bank reconciliation statements and performed confirmation procedures on the
balance of bank accounts;
(4) We checked bank statements and bank journals performed bidirectional tests on bank statements of significant accounts and
checked the transactions with large amounts;
(5) We checked the original documents of time deposits and their holders' information to understand the business rationale for the
time deposits and assess their reasonableness and check whether any funds are restricted due to pledges litigation freezes or other
reasons in combination with enterprise credit reports bank confirmation replies etc.;
(6) We reviewed interest income checked whether interest income was consistent with the amount of cash and bank balances in
conjunction with finance expenses and investment income and checked whether there were high-interest fund borrowings or
abnormal fund deposit arrangements;
1142025 Annual Report of Zhejiang NHU Co. Ltd.
(7) For large monetary transactions recorded around the balance sheet date we verified them against the corresponding receipts
and payment documents to assess whether any abnormal inter-period revenue or expenditure events exist;
(8) We checked whether information related to cash and bank balances had been presented appropriately in the financial
statements.IV. Other Information
The Management of NHU is responsible for the other information. The other information comprises the information included in
the NHU’s 2025 annual report but does not include the financial statements and our auditor 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 combination with our audit of the financial statements our responsibility is to read the other information and in doing so
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other information we are
required to report that fact. In this regard we have nothing to report.V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The management of NHU company is responsible for preparing the Financial Statements in accordance with the requirements of
Accounting Standards for Business Enterprises to achieve a fair presentation and for designing implementing and maintaining
internal control that is necessary to ensure that the Financial Statements are free from material misstatements whether due to
frauds or errors.In preparing the financial statements the management is responsible for assessing the NHU company’s ability to continue as a
going concern disclosing matters related to going concern (where appropriate) and using the going concern basis of accounting
unless the management either intends to liquidate NHU company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the NHU company’s financial reporting process.VI. Certified Public Accountant’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 audit report that includes the audit opinions. Reasonable assurance is a
high level of assurance but is not a guarantee that an audit conducted in accordance with audit standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are 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.
1152025 Annual Report of Zhejiang NHU Co. Ltd.
As part of an audit in accordance with the audit standards we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements due to fraud or error design and perform audit
procedures to address those risks and obtain sufficient and appropriate audit evidence on which to base an audit opinion. The risk
of failing to detect a material misstatement due to fraud is higher than the risk of failing to detect a material misstatement due to
error because fraud may involve collusion forgery willful omission misrepresentation or override of internal controls.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management of the Company.
(4) Draw a conclusion on the appropriateness of the continuing operation assumption used by the management layer. And
conclude based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast
significant doubt on NHU company’s capability to continue as a going concern. If we conclude that a material uncertainty exists
we are required to draw attention in our audit report to the related disclosures in the financial statements or if such disclosures are
inadequate to modify our opinion. Our conclusions are based on the information available up to the date of our audit report.However future events or conditions may cause NHU company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the Financial Statements and whether the Financial Statements
represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of NHU company in entities and business
activities to provide opinions on the Financial Statements. We are responsible for the guidance supervision and implementation of
the group audit and take full responsibility for the audit opinions.We have communicated with those charged with governance regarding the planned scope and timing of the audit and significant
audit matters including any significant audit deficiencies in internal control that we identify during our audit.We have also provided a statement to those charged with governance that we have complied with professional ethics requirements
relating to independence communicated with them all relationships and other matters that may reasonably be considered to affect
our independence as well as relevant preventive measures (if applicable).Of the matters communicated with those charged with governance we determine which matters are most important to the audit of
the Financial Statements of the current period and thus form the critical audit matters. We describe these matters in the Audit
Report unless the public disclosure of these matters is prohibited by laws and regulations or in very few cases if it is reasonably
1162025 Annual Report of Zhejiang NHU Co. Ltd.
expected that the negative consequences caused by communication of certain matters in the Audit Report outweigh benefits
generated in public interest we confirm that the matters shall not be communicated in the Audit Report.II. Financial Statements
Units of financial reports in the notes: yuan
1. Consolidated Balance Sheet
Prepared by: Zhejiang NHU Co. Ltd.December 31 2025
Unit: RMBYuan
Items Closing balance Opening balance
Current assets:
Cash and bank balances 7966270131.17 7936504805.65
Deposit reservation for balance
Lending to banks and other financial
institutions
Trading Financial Assets 2168275092.55 745816.34
Derivative financial assets
Notes receivable 292562093.90
Accounts receivable 3331434677.27 3653676104.37
Receivables financing 813062385.73 523913135.22
Prepayments 178450145.87 163216512.08
Insurance premium receivable
Reinsurance accounts receivable
Reserves for reinsurance contract
receivable
Other receivables 274052669.41 225516143.49
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreement
Inventories 4648749467.43 4090096841.96
Including: data resources
Contracted assets
Assets held for sale
Non-current assets due within one year
Other current assets 55037719.63 35969632.09
Total current assets 19435332289.06 16922201085.10
Non-current assets:
Granting of loans and advances
Debt investments
Other debt investments
1172025 Annual Report of Zhejiang NHU Co. Ltd.
Items Closing balance Opening balance
Long-term receivables
Long-term equity investments 965350549.43 865262148.36
Other equity instrument investment 60126147.55 19498147.55
Other non-current financial assets
Investment property
Fixed assets 20298898673.14 21915984823.43
Construction in progress 745117350.86 571610643.68
Productive biological assets
Oil and gas assets
Right-of-use assets 9116717.87 13222869.09
Intangible assets 2590073891.40 2482899966.19
Including: data resources
Development expenditure
Including: data resources
Goodwill 3622704.97 3622704.97
Long-term deferred expenses 19477100.43 33059580.89
Deferred tax assets 2692450.99 2106046.31
Other non-current assets 1476641929.78 159664455.40
Total non-current assets 26171117516.42 26066931385.87
Total assets 45606449805.48 42989132470.97
Current liabilities:
Short-term borrowings 675172682.37 1162512239.04
Borrowings from the central bank
Borrowing from banks and financial
institutions
Financial liabilities held for trading 11151258.46
Derivative financial liabilities
Notes payable 70054101.63 159164822.28
Accounts payable 1780307765.08 1685979157.55
Advance receipts
Contract liabilities 294819090.20 237013669.77
Financial assets sold for repurchase
Deposits and interbank deposits
received
Receiving from Vicariously Traded
Securities
Receiving from Vicariously Sold
Securities
Employee benefits payable 511515144.15 473107111.45
Taxes and fees payable 669468878.66 538903915.30
Other payables 131685145.99 122424090.50
Including: Interests payable
1182025 Annual Report of Zhejiang NHU Co. Ltd.
Items Closing balance Opening balance
Dividends payable
Charges and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
3165413873.492465378913.94
year
Other current liabilities 99358351.24 53564334.90
Total current liabilities 7397795032.81 6909199513.19
Non-current liabilities:
Provision for insurance contracts
Long-term borrowings 4187178569.02 5327243721.25
Bonds payable
Including: Preferred stocks
Perpetual bonds
Lease liabilities 2500183.66 3584791.02
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income 906007748.59 1025834591.04
Deferred income tax liabilities 152052864.16 277719591.54
Other non-current liabilities
Total non-current liabilities 5247739365.43 6634382694.85
Total liabilities 12645534398.24 13543582208.04
Equity：
Share capital 3073421680.00 3073421680.00
Other equity instruments
Including: Preferred stocks
Perpetual bonds
Capital reserve 3135683253.49 3132519968.42
Less: Treasury stock 556161195.70
Other comprehensive income 67743496.72 91513343.50
Special reserves 162056373.58 106348864.91
Surplus reserves 1545453678.00 1545453678.00
General risk reserve
Undistributed profits 25377456895.81 21375740194.12
Total equity attributable to parent 32805654181.90 29324997728.95
company shareholders
Non-controlling interest 155261225.34 120552533.98
Total owner's equity 32960915407.24 29445550262.93
Total liabilities and equity 45606449805.48 42989132470.97
Legal Representative: Hu Baifan Chief Accountant in Charge: Shi Guanqun Chief of Accounting Institution: Wang Xiaobi
1192025 Annual Report of Zhejiang NHU Co. Ltd.
2. Balance Sheet of the Parent Company
Unit: RMBYuan
Items Closing balance Opening balance
Current assets:
Cash and bank balances 1555965210.51 3810717348.40
Trading Financial Assets 451800000.01
Derivative financial assets
Notes receivable 292562093.90
Accounts receivable 1092272295.09 1455089726.43
Receivables financing 270401584.88
Prepayments 3263824.89 2099814.14
Other receivables 476588831.47 1008085932.79
Including: Interest receivable
Dividends receivable
Inventories 311443142.04 400830486.99
Including: data resources
Contracted assets
Assets held for sale
Non-current assets due within one year
Other current assets 14680703.63 3049642.27
Total current assets 4176415592.52 6972435044.92
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 12816459007.72 11488137747.99
Other equity instrument investment 110126147.55 69498147.55
Other non-current financial assets
Investment property
Fixed assets 723262231.62 757545856.68
Construction in progress 60024286.84 25813815.03
Productive biological assets
Oil and gas assets
Right-of-use assets 2308653.88 2469722.68
Intangible assets 155849630.44 146947405.16
Including: data resources
Development expenditure
Including:data resources
Goodwill
Long-term deferred expenses 389534.31
Deferred tax assets 605226.35
Other non-current assets 524620404.55 55399951.70
1202025 Annual Report of Zhejiang NHU Co. Ltd.
Items Closing balance Opening balance
Total non-current assets 14392650362.60 12546807407.45
Total assets 18569065955.12 19519242452.37
Current liabilities:
Short-term borrowings 170756694.44 304056277.79
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 62937989.99
Accounts payable 449516671.19 156311918.60
Advance receipts
Contract liabilities 6104710.14 7720715.41
Employee benefits payable 101012594.64 89940402.47
Taxes and fees payable 38789811.12 21422158.51
Other payables 24009833.99 20443244.50
Including: Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
2110742905.691817695895.34
year
Other current liabilities 4863857.53 6244444.91
Total current liabilities 2905797078.74 2486773047.52
Non-current liabilities:
Long-term borrowings 2560775206.87 3020447965.04
Bonds payable
Including: Preferred stocks
Perpetual bonds
Lease liabilities 2486246.32 2603650.85
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income 15536053.20 18171910.38
Deferred income tax liabilities 18965367.73
Other non-current liabilities
Total non-current liabilities 2597762874.12 3041223526.27
Total liabilities 5503559952.86 5527996573.79
Equity：
Share capital 3073421680.00 3073421680.00
Other equity instruments
Including: Preferred stocks
Perpetual bonds
Capital reserve 2871264474.99 2871231553.94
Less: Treasury stock 556161195.70
Other comprehensive income 36492554.43 506954.43
Special reserves 29335599.82 19478463.14
1212025 Annual Report of Zhejiang NHU Co. Ltd.
Items Closing balance Opening balance
Surplus reserves 1545453678.00 1545453678.00
Undistributed profits 6065699210.72 6481153549.07
Total owner's equity 13065506002.26 13991245878.58
Total liabilities and equity 18569065955.12 19519242452.37
Legal Representative: Hu Baifan Chief Accountant in Charge: Shi Guanqun Chief of Accounting Institution: Wang Xiaobi
3. Consolidated income statement
Unit: RMBYuan
Items 2025 2024
I. Total operating revenue 22251361880.58 21609592228.45
Including: Operating revenue 22251361880.58 21609592228.45
Interest income
Earned premiums
Fee and Commission Income
II. Total Operating Cost 14513428804.98 14833148723.72
Including: Operating cost 12310807989.89 12582000646.65
Interest expenses
Handling charge and commission
expenses
Surrender value
Net claims paid
Net provision for insurance
liabilities
Policyholder Dividend Expense
Reinsurance cost
Taxes and surcharges 274458460.85 250745675.42
Selling expenses 186625106.77 190298278.24
Administrative expenses 656845768.83 595894541.26
R&D expenses 1099437900.40 1036161740.50
Financial expenses -14746421.76 178047841.65
Including: Interest expenses 223176363.34 282180513.56
Interest income 78265146.31 126041480.98
Add: Other income 252983451.94 268057018.67
Investment income (“-” for loss) 140560163.60 77274370.60
Including: Income from
100113224.9553851462.30
investment in associates and joint ventures
Gain on derecognition
of financial assets measured at amortized
cost
Exchange gains (“－” for loss)
Net-exposure hedging income (“-”
for loss)
1222025 Annual Report of Zhejiang NHU Co. Ltd.
Items 2025 2024
Fair value change gains (“-” for loss) -53391170.13 -13600481.19
Credit impairment losses (“-” for 12879377.53 -55009881.32
loss)
Assets impairment loss (“-” for loss) -235426877.98 -81957927.36
Gains on asset disposal ("-" for loss) -1494406.52 1393189.08
III. Operating Profit ("-" for loss) 7854043614.04 6972599793.21
Add: Non-operating income 18284909.92 5472411.83
Less: Non-operating expenses 22811106.04 34491018.05
IV. Total Profit Before Tax (“-” for total 7849517417.92 6943581186.99
losses)
Less: Income tax expense 1047430680.77 1046710979.40
V. Net Profit (“-” for net loss) 6802086737.15 5896870207.59
(I) Classification by business continuity
1. Net profit from continuing 6802086737.15 5896870207.59
operations (“-” for net loss)
2. Net profit from discontinued
operations (“-” for net loss)
(II) Classification by ownership
1. Net profit attributable to 6764199225.29 5868545988.62
shareholders of the parent company
2. Net profit attributable to
37887511.8628324218.97
non-controlling shareholders
VI. Net Amount after Tax of Other -11509257.28 -21417073.44
Comprehensive Income
Net amount of other comprehensive
income after tax attributed to the owners of -23769846.78 -12407389.35
parent company
(I) Other comprehensive income that
35985600.00
cannot be reclassified into profit or loss
1. Amount of changes in the defined
benefit plan due to re-measurement
2. Other comprehensive income that
can not be converted into profits and losses
under the equity method
3. Changes in the fair value of
35985600.00
investment in other equity instruments
4. Changes in the fair value of the
enterprise's own credit risk
5. Other
(II) Other comprehensive income that -59755446.78 -12407389.35
will be reclassified into profit or loss
1. Other comprehensive income that
can be converted to profit or loss under the
equity method
2. Change in fair value for other
investments on bonds
3. Amount of financial assets
reclassified into other comprehensive
income
1232025 Annual Report of Zhejiang NHU Co. Ltd.
Items 2025 2024
4. Provisions for the credit
impairment of investment in other creditor's
rights
5. Cash flow hedge reserve
6. Difference of foreign currency -59755446.78 -12407389.35
financial statement translation
7. Other
Net after-tax other comprehensive
income attributable to non-controlling 12260589.50 -9009684.09
shareholders
VII. Total Comprehensive Income 6790577479.87 5875453134.15
Total comprehensive income attributable
6740429378.515856138599.27
to owners of the parent company
Total comprehensive income attributable
50148101.3619314534.88
to non-controlling shareholders
VIII. Earnings per Share
(I) Basic earnings per share(yuan/share) 2.21 1.91
(II) Diluted earnings per
2.211.91
share(yuan/share)
Legal Representative: Hu Baifan Chief Accountant in Charge: Shi Guanqun Chief of Accounting Institution: Wang Xiaobi
4. Income Statement of the Parent Company
Unit: RMBYuan
Items 2025 2024
I. Operating revenue 4886474726.13 4443985667.77
Less: Operating cost 3669576443.05 3422591909.49
Taxes and surcharges 28728430.87 15902824.62
Selling expenses 49502088.41 43445215.30
Administrative expenses 182622751.68 169928788.65
R&D expenses 264516970.14 224541489.04
Financial expenses 90506684.91 76838195.16
Including: Interest expenses 129275987.41 158660246.18
Interest income 41032895.83 83523057.29
Add: Other income 39838543.21 33355311.23
Investment income (“-” for loss) 1759147458.38 2174759454.72
Including: Income from
investment in associates and joint 121357538.68 34040307.12
ventures
Gains from
derecognition of financial assets
measured at amortized cost (“-” for loss)
Net-exposure hedging income
(“-” for loss)
Fair value change gains (“-” for
1800000.01
loss)
Credit impairment losses (“-” for
44979139.8758079817.91
loss)
1242025 Annual Report of Zhejiang NHU Co. Ltd.
Items 2025 2024
Assets impairment loss (“-” for
-23801231.75-9821857.49
loss)
Gains on asset disposal ("-" for
-1415587.34201235.37
loss)
II. Operating Profit (“-” for loss) 2421569679.45 2747311207.25
Add: Non-operating income 1005331.01 722089.07
Less: Non-operating expenses 1681273.48 4015788.77
III. Total profit (“-” for total loss) 2420893736.98 2744017507.55
Less: Income tax expense 73865551.73 17424120.11
IV. Net Profit (“-” for net loss) 2347028185.25 2726593387.44
(I) Net Profit as a Going Concern
2347028185.252726593387.44
(Mark "-" for Net Loss)
(II) Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
V. Net Amount of Other Comprehensive 35985600.00
Incomes After Tax
(I) Other comprehensive income
that cannot be reclassified into profit or 35985600.00
loss
1. Amount of changes in the
defined benefit plan due to
re-measurement
2. Other comprehensive income
that can not be converted into profits and
losses under the equity method
3. Changes in the fair value of 35985600.00
investment in other equity instruments
4. Changes in the fair value of the
enterprise's own credit risk
5. Other
(II) Other comprehensive income
that will be reclassified into profit or loss
1. Other comprehensive income
that can be converted to profit or loss
under the equity method
2. Change in fair value for other
investments on bonds
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge reserve
6. Difference of foreign currency
financial statement translation
7. Other
VI. Total Comprehensive Income 2383013785.25 2726593387.44
VII. Earnings Per Share
(I) Basic earnings per
share(yuan/share)
1252025 Annual Report of Zhejiang NHU Co. Ltd.
Items 2025 2024
(II) Diluted earnings per
share(yuan/share)
Legal Representative: Hu Baifan Chief Accountant in Charge: Shi Guanqun Chief of Accounting Institution: Wang Xiaobi
5. Consolidated cash flow statement
Unit: RMBYuan
Items 2025 2024
I. Cash flows generated from operating
activities:
Cash received from the sale of
commodities and rendering of labor 22156563859.82 19053643873.01
services
Net increase in deposit from customers
and interbank
Net increase in borrowing from central
bank
Net increase in borrowings from other
financial institutions
Cash receipts from premiums under
direct insurance contracts
Net Amount Arising from Reinsurance
Business
Net Increase in Deposits and Investments
from Policyholders
Cash Arising from Interests Service
Charges and Commissions
Net Increase in Borrowings from Banks
and Other Financial Institutions
Net increase in repurchase business
capital
Net Amount of Cash Received from the
Vicariously Traded Securities
Tax Refund 512573189.25 458848003.09
Cash received relating to other operating
223269199.26317657192.98
activities
Subtotal of cash inflows from operating
22892406248.3319830149069.08
activities
Cash payments for goods acquired and
9535212443.318751457054.03
services received
Net increase in customer loans and
advances
Net increase in deposits in central bank
and interbank
1262025 Annual Report of Zhejiang NHU Co. Ltd.
Items 2025 2024
Cash payments for original insurance
contract claims
Net increase in lending funds from banks
and other financial institutions
Cash payments for interest fee and
commission
Cash payments for insurance
policyholder dividends
Cash paid to and on behalf of employees 2127393631.81 2045076828.25
Cash payments for taxes 2007293663.27 1589158602.36
Other cash payments relating to
425075169.02371392401.11
operating activities
Subtotal of cash outflows from operating
14094974907.4112757084885.75
activities
Net cash flows from operating activities 8797431340.92 7073064183.33
II. Cash Flows from Investing Activities:
Cash receipts from investment
1708000.003500000.00
withdrawal
Cash receipts from returns on
85202824.9843014111.55
investments
Net cash receipts from disposals of fixed
assets intangible assets and other 133682124.73 73224210.59
long-term assets
Net cash received from disposal of
80926928.19
subsidiaries and other business units
Other cash receipts relating to investing
2160529723.20145000000.00
activities
Subtotal of cash inflows from investing
2381122672.91345665250.33
activities
Cash Paid for the Purchase and
Construction of Fixed Assets Intangible 1900353477.87 1599799315.13
Assets and Other Long-term Assets
Cash payments for investment 155672000.00
Net increase in pledged loans
Net Cash Paid for Acquisition of
Subsidiaries and Other Business Units
Other Paid Cashes Related to Investment
2523299656.972364056616.43
Activities
Subtotal of cash outflows from investing
4423653134.844119527931.56
activities
Net cash flows from investing activities -2042530461.93 -3773862681.23
III. Cash Flows from Financing
1272025 Annual Report of Zhejiang NHU Co. Ltd.
Items 2025 2024
Activities:
Cash received from capital contributions 1941199.07
Including: Cash received from
investment of minority shareholder from 1941199.07
subsidiary
Cash received from borrowings 3435574243.40 4330592177.82
Other cash receipts relating to financing
108750334.91
activities
Subtotal of cash inflows from financing
3435574243.404441283711.80
activities
Cash repayments of amounts borrowed 4352011649.19 4996888657.03
Cash payments for distribution of
dividends profits or cash payments for 3002785917.49 1677551933.66
interest expenses
Including: Dividends and profits paid to
15439410.0014142695.44
minority shareholders by subsidiaries
Other cash paid related to financing
558607329.1129860119.89
activities
Subtotal of cash outflows from financing
7913404895.796704300710.58
activities
Net cash flows from financing activities -4477830652.39 -2263016998.78
IV. Effect of foreign exchange rate
21184595.9438697747.85
changes on cash and cash equivalents
V. Net Increase in Cash and Cash
2298254822.541074882251.17
Equivalents
Add: Beginning balance of cash and cash
5521452666.474446570415.30
equivalents
VI. Closing Balance of Cash and Cash
7819707489.015521452666.47
Equivalents
Legal Representative: Hu Baifan Chief Accountant in Charge: Shi Guanqun Chief of Accounting Institution: Wang Xiaobi
6. Cash Flow Statement of the Parent Company
Unit: RMBYuan
Items 2025 2024
I. Cash flows generated from operating
activities:
Cash received from the sale of
commodities and rendering of labor 5352434252.02 3521086251.53
services
Tax Refund 168226098.55 88706403.65
Cash received relating to other
83876421.02121346508.65
operating activities
Subtotal of cash inflows from operating
5604536771.593731139163.83
activities
1282025 Annual Report of Zhejiang NHU Co. Ltd.
Cash payments for goods acquired and
3519999231.493622675768.59
services received
Cash paid to and on behalf of
401682114.46362197711.22
employees
Cash payments for taxes 77325734.63 17629133.53
Other cash payments relating to
132535344.04118754035.38
operating activities
Subtotal of cash outflows from operating
4131542424.624121256648.72
activities
Net cash flows from operating activities 1472994346.97 -390117484.89
II. Cash Flows from Investing Activities:
Cash receipts from investment
1708000.0086291000.00
withdrawal
Cash receipts from returns on
1637667820.242075920000.00
investments
Net cash receipts from disposals of
fixed assets intangible assets and other 338051.14 18949197.67
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash receipts relating to
5275048895.312412265557.83
investing activities
Subtotal of cash inflows from investing
6914762766.694593425755.50
activities
Cash Paid for the Purchase and
Construction of Fixed Assets Intangible 140226512.29 210763519.36
Assets and Other Long-term Assets
Cash payments for investment 1232850800.00 855672000.00
Net Cash Paid for Acquisition of
Subsidiaries and Other Business Units
Other Paid Cashes Related to
3548220000.002405200000.00
Investment Activities
Subtotal of cash outflows from investing
4921297312.293471635519.36
activities
Net cash flows from investing activities 1993465454.40 1121790236.14
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings 2119000000.00 2000000000.00
Other cash receipts relating to
financing activities
Subtotal of cash inflows from financing
2119000000.002000000000.00
activities
Cash repayments of amounts
2415000000.002394000000.00
borrowed
Cash payments for distribution of
dividends profits or cash payments for 2895563151.47 1539258046.63
interest expenses
Other cash paid related to financing
556698212.701405443.74
activities
Subtotal of cash outflows from financing
5867261364.173934663490.37
activities
Net cash flows from financing activities -3748261364.17 -1934663490.37
IV. Effect of foreign exchange rate
-1637366.6516333.73
changes on cash and cash equivalents
1292025 Annual Report of Zhejiang NHU Co. Ltd.
V. Net Increase in Cash and Cash
-283438929.45-1202974405.39
Equivalents
Add: Beginning balance of cash and
1700342936.462903317341.85
cash equivalents
VI. Closing Balance of Cash and Cash
1416904007.011700342936.46
Equivalents
Legal Representative: Hu Baifan Chief Accountant in Charge: Shi Guanqun Chief of Accounting Institution: Wang Xiaobi
1302025 Annual Report of Zhejiang NHU Co. Ltd.
7. Consolidated statement of changes in owners’ equity
Amount of the current period
Unit: RMBYuan
2025
Equity attributable to owners of the parent company
Items Other equity instruments MinorityLess: Other General Total owner's
Capital Special Surplus Undistributed shareholders
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal ’ equity equity
Others reserve reserves reserves profits
stocks bonds stock income reserve
I. Balance at the
end of the period 3073421680.00 3132519968.42 91513343.50 106348864.91 1545453678.00 21375740194.12 29324997728.95 120552533.98 29445550262.93
of previous year
Add: Changes to
accounting
policies
Correction of
errors from
previous periods
Others
II. Opening
balance of this 3073421680.00 3132519968.42 91513343.50 106348864.91 1545453678.00 21375740194.12 29324997728.95 120552533.98 29445550262.93
year
III. Increase or
decrease in the
3163285.07556161195.70-23769846.7855707508.674001716701.693480656452.9534708691.363515365144.31
current period (“-”
for decrease)
(I) Total
comprehensive -23769846.78 6764199225.29 6740429378.51 50148101.36 6790577479.87
income
(II) Capital
injection and
556161195.70-556161195.70-556161195.70
reduction by
owners
1312025 Annual Report of Zhejiang NHU Co. Ltd.
2025
Equity attributable to owners of the parent company
Items Other equity instruments MinorityLess: Other General shareholders Total owner'sCapital Special Surplus Undistributed
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal ’ equity equity
Others reserve reserves reserves profits
stocks bonds stock income reserve
1．Common stock
invested by the
owner
2． Capital
contributed by
holders of other
equity instruments
3． Amount of
share-based
payments recorded
into the owners'
equity
4． Others 556161195.70 -556161195.70 -556161195.70
(III) Profit
-2762482523.60-2762482523.60-15439410.00-2777921933.60
distribution
1． Appropriation
of surplus reserve
2． Appropriation
of general risk
reserve
3． Distribution to
owners (or -2762482523.60 -2762482523.60 -15439410.00 -2777921933.60
shareholders)
4． Others
(iv) Internal
transfers of
owner's equity
1． Conversion of
capital reserves to
1322025 Annual Report of Zhejiang NHU Co. Ltd.
2025
Equity attributable to owners of the parent company
Items Other equity instruments MinorityLess: Other General
Capital Special Surplus Undistributed shareholders
Total owner's
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal ’ equity equity
Others reserve reserves reserves profits
stocks bonds stock income reserve
increased capital
(or capital stock)
2． Conversion of
surplus reserves to
increased capital
(or capital stock)
3． Recovery of
losses by surplus
reserves
4． Amount of
changes in the
defined benefit
plan carried over
to the retained
earnings
5． Other
comprehensive
income carried
over to retained
earnings
6． Others
(v) Special
55707508.6755707508.6755707508.67
reserves
1． Withdrawal in
102722700.09102722700.09102722700.09
current period
2． Use in the
-47015191.42-47015191.42-47015191.42
current period
(VI) Others 3163285.07 3163285.07 3163285.07
1332025 Annual Report of Zhejiang NHU Co. Ltd.
2025
Equity attributable to owners of the parent company
Items Other equity instruments MinorityLess: Other General Total owner's
Capital Special Surplus Undistributed shareholders
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal ’ equity equity
Others reserve reserves reserves profits
stocks bonds stock income reserve
IV. Balance at the
3073421680.003135683253.49556161195.7067743496.72162056373.581545453678.0025377456895.8132805654181.90155261225.3432960915407.24
End of This Period
Amount of the previous period
Unit: RMBYuan
2024
Equity attributable to owners of the parent company
Items Other equity instruments MinorityLess: Other General Total owner's
Capital Special Surplus Undistributed shareholders
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal ’ equity equity
Others reserve reserves reserves profits
stocks bonds stock income reserve
I. Balance at the
end of the period 3090907356.00 3613345485.13 500059711.25 103920732.85 60860818.76 1545453678.00 16890233961.50 24804662320.99 115045831.88 24919708152.87
of previous year
Add: Changes to
accounting
policies
Correction of
errors from
previous periods
Others
II. Opening
balance of this 3090907356.00 3613345485.13 500059711.25 103920732.85 60860818.76 1545453678.00 16890233961.50 24804662320.99 115045831.88 24919708152.87
year
III. Increase or
decrease in the
-17485676.00-480825516.71-500059711.25-12407389.3545488046.154485506232.624520335407.965506702.104525842110.06
current period (“-”
for decrease)
(I) Total -12407389.35 5868545988.62 5856138599.27 19314534.88 5875453134.15
comprehensive
1342025 Annual Report of Zhejiang NHU Co. Ltd.
2024
Equity attributable to owners of the parent company
Items Other equity instruments MinorityLess: Other General Total owner's
Capital Special Surplus Undistributed shareholders
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal ’ equity equity
Others reserve reserves reserves profits
stocks bonds stock income reserve
income
(II) Capital
injection and
-17485676.00-482574035.25-500059711.251941199.071941199.07
reduction by
owners
1．Common stock
invested by the 1941199.07 1941199.07
owner
2． Capital
contributed by
holders of other
equity instruments
3． Amount of
share-based
payments recorded
into the owners'
equity
4． Others -17485676.00 -482574035.25 -500059711.25
(III) Profit
-1383039756.00-1383039756.00-14142695.44-1397182451.44
distribution
1． Appropriation
of surplus reserve
2． Appropriation
of general risk
reserve
3． Distribution to
owners (or -1383039756.00 -1383039756.00 -14142695.44 -1397182451.44
shareholders)
1352025 Annual Report of Zhejiang NHU Co. Ltd.
2024
Equity attributable to owners of the parent company
Items Other equity instruments MinorityLess: Other General
Capital Special Surplus Undistributed shareholders
Total owner's
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal ’ equity equity
Others reserve reserves reserves profits
stocks bonds stock income reserve
4． Others
(iv) Internal
transfers of
owner's equity
1． Conversion of
capital reserves to
increased capital
(or capital stock)
2． Conversion of
surplus reserves to
increased capital
(or capital stock)
3． Recovery of
losses by surplus
reserves
4． Amount of
changes in the
defined benefit
plan carried over
to the retained
earnings
5． Other
comprehensive
income carried
over to retained
earnings
6． Others
(v) Special
45488046.1545488046.1545488046.15
reserves
1362025 Annual Report of Zhejiang NHU Co. Ltd.
2024
Equity attributable to owners of the parent company
Items Other equity instruments MinorityLess: Other General Total owner's
Capital Special Surplus Undistributed shareholders
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal ’ equity equity
Others reserve reserves reserves profits
stocks bonds stock income reserve
1． Withdrawal in
83884085.0783884085.0783884085.07
current period
2． Use in the
-38396038.92-38396038.92-38396038.92
current period
(VI) Others 1748518.54 1748518.54 -1606336.41 142182.13
IV. Balance at the
3073421680.003132519968.4291513343.50106348864.911545453678.0021375740194.1229324997728.95120552533.9829445550262.93
End of This Period
1372025 Annual Report of Zhejiang NHU Co. Ltd.
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of the current period
Unit: RMBYuan
2025
Other equity instruments
Items OtherLess: Treasury Special Surplus Undistributed Total owner's
Share capital Preferred Perpetual Capital reserve comprehensive Others
Others stock reserves reserves profits equity
stocks bonds income
I. Balance at the end of
the period of previous 3073421680.00 2871231553.94 506954.43 19478463.14 1545453678.00 6481153549.07 13991245878.58
year
Add: Changes to
accounting policies
Correction of errors from
previous periods
Others
II. Opening balance of
3073421680.002871231553.94506954.4319478463.141545453678.006481153549.0713991245878.58
this year
III. Increase or decrease
in the current period (“-” 32921.05 556161195.70 35985600.00 9857136.68 -415454338.35 -925739876.32
for decrease)
(I) Total comprehensive
35985600.002347028185.252383013785.25
income
(II) Capital injection and
556161195.70-556161195.70
reduction by owners
1． Common stock
invested by the owner
2． Capital contributed
by holders of other equity
instruments
3． Amount of
share-based payments
recorded into the owners'
equity
1382025 Annual Report of Zhejiang NHU Co. Ltd.
2025
Other equity instruments
Items OtherLess: Treasury Special Surplus Undistributed Total owner's
Share capital Preferred Perpetual Capital reserve comprehensive Others
Others stock reserves reserves profits equity
stocks bonds income
4． Others 556161195.70 -556161195.70
(III) Profit distribution -2762482523.60 -2762482523.60
1． Appropriation of
surplus reserve
2． Distribution to
-2762482523.60-2762482523.60
owners (or shareholders)
3． Others
(iv) Internal transfers of
owner's equity
1． Conversion of capital
reserves to increased
capital (or capital stock)
2．Conversion of surplus
reserves to increased
capital (or capital stock)
3．Recovery of losses by
surplus reserves
4．Amount of changes in
the defined benefit plan
carried over to the
retained earnings
5． Other comprehensive
income carried over to
retained earnings
6． Others
(v) Special reserves 9857136.68 9857136.68
1．Withdrawal in current
14312971.3214312971.32
period
1392025 Annual Report of Zhejiang NHU Co. Ltd.
2025
Other equity instruments
Items OtherLess: Treasury Special Surplus Undistributed Total owner's
Share capital Preferred Perpetual Capital reserve comprehensive Others
Others stock reserves reserves profits equity
stocks bonds income
2． Use in the current
-4455834.64-4455834.64
period
(VI) Others 32921.05 32921.05
IV. Balance at the End of
3073421680.002871264474.99556161195.7036492554.4329335599.821545453678.006065699210.7213065506002.26
This Period
Amount of the previous period
Unit: RMBYuan
2024
Other equity instruments
Items OtherLess: Treasury Special Surplus Undistributed Total owner's
Share capital Preferred Perpetual Capital reserve comprehensive Others
Others stock reserves reserves profits equity
stocks bonds income
I. Balance at the end
of the period of 3090907356.00 3353675803.74 500059711.25 506954.43 10583344.97 1545453678.00 5137599917.63 12638667343.52
previous year
Add: Changes to
accounting policies
Correction of errors
from previous periods
Others
II. Opening balance of
3090907356.003353675803.74500059711.25506954.4310583344.971545453678.005137599917.6312638667343.52
this year
III. Increase or
decrease in the current
-17485676.00-482444249.80-500059711.258895118.171343553631.441352578535.06
period (“-” for
decrease)
1402025 Annual Report of Zhejiang NHU Co. Ltd.
2024
Other equity instruments
Items OtherLess: Treasury Special Surplus Undistributed Total owner's
Share capital Preferred Perpetual Capital reserve comprehensive Others
Others stock reserves reserves profits equity
stocks bonds income
(I) Total
comprehensive 2726593387.44 2726593387.44
income
(II) Capital injection
and reduction by -17485676.00 -482574035.25 -500059711.25
owners
1． Common stock
invested by the owner
2． Capital
contributed by holders
of other equity
instruments
3． Amount of
share-based payments
recorded into the
owners' equity
4． Others -17485676.00 -482574035.25 -500059711.25
(III) Profit
-1383039756.00-1383039756.00
distribution
1． Appropriation of
surplus reserve
2． Distribution to
owners (or -1383039756.00 -1383039756.00
shareholders)
3． Others
(iv) Internal transfers
of owner's equity
1412025 Annual Report of Zhejiang NHU Co. Ltd.
2024
Other equity instruments
Items OtherLess: Treasury Special Surplus Undistributed Total owner's
Share capital Preferred Perpetual Capital reserve comprehensive Others
Others stock reserves reserves profits equity
stocks bonds income
1． Conversion of
capital reserves to
increased capital (or
capital stock)
2． Conversion of
surplus reserves to
increased capital (or
capital stock)
3． Recovery of
losses by surplus
reserves
4． Amount of
changes in the defined
benefit plan carried
over to the retained
earnings
5． Other
comprehensive
income carried over to
retained earnings
6． Others
(v) Special reserves 8895118.17 8895118.17
1． Withdrawal in
10897162.6310897162.63
current period
2． Use in the current
-2002044.46-2002044.46
period
(VI) Others 129785.45 129785.45
IV. Balance at the End
3073421680.002871231553.94506954.4319478463.141545453678.006481153549.0713991245878.58
of This Period
1422025 Annual Report of Zhejiang NHU Co. Ltd.
III. Basic Information about the Company
Zhejiang NHU Co. Ltd. (hereinafter referred to as the Company or this Company) was established with the approval of the former
Securities Committee of the People's Government of Zhejiang Province under document Zhe Zheng Wei [1999] No. 9. It was
jointly established by Xinchang Synthetic Chemical Plant (renamed NHU Holding Group Co. Ltd. on November 17 2009)
together with nine individuals: Zhang Pingyi Yuan Yizhong Shi Cheng Hu Baiyan Shi Guanqun Wang Xuewen Shi Sanfu Cui
Xinrong and Wang Xulin. The Company was registered with the Zhejiang Provincial Administration for Industry and Commerce
on April 5 1999 and is headquartered in Shaoxing City Zhejiang Province. The Company currently holds a business license with
unified social credit code 91330000712560575G registered capital RMB 3073421680.00 and a total of 3073421680 shares
(par value of RMB 1 per share). Among them outstanding shares A subject to sale restrictions: 36559752 shares; outstanding
shares A not subject to sale restrictions: 3036861928 shares. The Company's shares were listed and began trading on the
Shenzhen Stock Exchange on June 25 2004.The Company is in the pharmaceutical manufacturing industry. The main operating activities are research and development
production and sales of nutritional products aroma chemicals and new polymer materials.These financial statements have been approved for external disclosure by the Company at the 18th meeting of the ninth session of
the Board of Directors on April 14 2026.IV. Basis for Preparing the Financial Statement
1. Basis for the preparation
The financial statements of the Company are prepared on the basis of a going concern.
2. Going concern
There are no events or circumstances that would give rise to major concerns as to the Company's capability to continue as a going
concern for 12 months from the end of the reporting period.V. Significant Accounting Policies and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
The Company has established specific accounting policies and accounting estimates for transactions or matters such as impairment
of financial instruments inventories depreciation of fixed assets construction in progress intangible assets and revenue
recognition based on the characteristics of its actual production and operations.
1432025 Annual Report of Zhejiang NHU Co. Ltd.
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company conform to the requirements of the accounting standards for business
enterprises and truly and completely reflect the relevant information of the Company such as its financial status operating results
and cash flow.
2. Accounting period
The fiscal year starts from January 1 to December 31 of the Gregorian calendar.
3. Operating cycle
Except for the real estate industry the business cycle of the Company is short and 12 months is taken as the liquidity division
criteria for assets and liabilities. The operating cycle in the real estate industry from property development to realization through
sale generally exceeds 12 months. The specific cycle is determined based on the circumstances of the development project and
the operating cycle is used as the criterion for classifying the liquidity of assets and liabilities.
4. Recording currency
The Company and its domestic subsidiaries use RMB as their currency for accounting purposes. Overseas subsidiaries such as
NHU (Hong Kong) Trading Co. Ltd. NHU EUROPE GMBH NHU Singapore Pte. Ltd. NHU/Chr.Olesen Latin America A/S
NHU LIFE SCIENCE GmbH CONG TY TNHH NHU VIETNAM NHU Japan 株式会社 NHU North America LLC and NHU
BESLENME GIDA SANAYi VE TiCARET LiMiTED SIRKETI conduct overseas operations and have chosen the currency of the
primary economic environment in which they operate as their currency for accounting purposes.
5. Determination method and selection basis of importance standards
□Applicable □ Not applicable
Items Importance standards
Significant write-offs of accounts receivable The amount of a single item exceeds 0.5% of the total assets
Important prepayments with an aging of more than one year The amount of a single item exceeds 0.5% of the total assets
Important construction in progress projects The amount of a single item exceeds 0.5% of the total assets
Important accounts payable with an aging of more than one
The amount of a single item exceeds 0.5% of the total assets
year
Other important accounts payable with an aging of more than
The amount of a single item exceeds 0.5% of the total assets
one year
Important contract liabilities aged above 1 year The amount of a single item exceeds 0.5% of the total assets
Significant changes in the carrying amount of contract
The amount of a single item exceeds 0.5% of the total assets
liabilities
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Items Importance standards
The cash flow amount from a single investing activity exceeds
Significant cash flows from investing activities
10% of the total assets
Total assets/total revenue/total profit exceed the corresponding
Important overseas businesses
items in the consolidated financial statements by 15%.Total assets/total revenue/total profit exceed the corresponding
Important subsidiary and non-wholly-owned subsidiary
items in the consolidated financial statements by 15%.The carrying amount of a single long-term equity investment
exceeds 15% of the Group's net assets / The investment income
Important associates and joint ventures
of a single investment accounted for under the equity method
exceeds 15% of the Group's total profit
6. The accounting treatment of business combinations involving enterprises under common control and
business combinations not involving enterprises under common control
(1) The accounting treatment of business combinations involving enterprises under common control
For a business combination under common control the acquirer measures the assets and liabilities of the acquiree obtained in the
combination at the carrying amounts of the acquiree in the consolidated financial statements of the ultimate controlling party as of
the date of the combination. The difference between the carrying amount of the consideration transferred in a business
combination and the carrying amount of the net assets acquired in the combination is adjusted to capital reserve; if the capital
reserve is insufficient to offset it retained earnings are adjusted.Business combination under common control achieved in stages through multiple transactions
The assets and liabilities of the acquiree obtained in the consolidation are measured at their carrying amounts in the ultimate
controlling party’s consolidated financial statements on the acquisition date; the difference between the sum of the carrying
amount of the investment held before the consolidation and the carrying amount of the consideration newly paid on the acquisition
date and the carrying amount of the net assets acquired in the consolidation adjusts capital reserve; if the capital reserve is
insufficient to offset the difference retained earnings are adjusted. The long-term equity investment held by the merging party
prior to the acquisition of the control right of the merged party and the relevant profits and losses other comprehensive income
and other changes in owners’ equity have been confirmed from the later date on which the original equity is acquired and the
merging party and the merged party are under common control to the date of merger are offset against the beginning retained
earnings or current profits and losses of the comparative statement period respectively.
(2) The accounting treatment of business combinations not involving enterprises under common control
Business combination involving entities not under common control: The cost of combination is the fair value of the assets paid the
liabilities incurred or assumed and the equity securities issued to acquire the control of the acquiree on the date of acquisition. On
the acquisition date the assets liabilities and contingent liabilities acquired from the acquiree are recognized at fair value.
1452025 Annual Report of Zhejiang NHU Co. Ltd.
Where the cost of combination is higher than the fair value of the identifiable net assets acquired from the merging party in
business combination such difference shall be recognized as goodwill subsequently measured at cost less accumulated
impairment losses.; where the cost of combination is less than the fair value of the identifiable net assets acquired from the
merging party in business combination such difference shall be charged to the profit or loss for the period after review.Business combination under non?common control achieved through multiple transactions in stages
The cost of a business combination is the sum of the consideration transferred on the purchase date and the fair value on the
purchase date of the equity interests in the acquiree that were already held before the purchase date. For equity interests in the
acquiree that were held before the acquisition date remeasure those equity interests at their fair value at the acquisition date; the
difference between fair value and their carrying amount is recognized in investment income for the current period. If the acquiree's
pre?acquisition equity holdings relate to other comprehensive income or other changes in owners' equity that are reclassified to
income on the acquisition date those amounts are reclassified to income for the current period except for other comprehensive
income arising from remeasurement of the investee's defined benefit plan net liability or net asset and except for other
comprehensive income related to non?trading equity instrument investments that were originally designated at fair value with
changes recognized in other comprehensive income.
(3) Treatment of transaction costs in business combinations
Acquisition-related costs including auditing fees legal services fees valuation advice fees and other relevant management fees are
generally recognized in profit or loss as incurred. The transaction costs of equity securities or debt securities issued as the
consideration of combination are included in the initial recognition amount of equity securities or debt securities.
7. Criteria for Judging Control and Method for Preparing the Consolidated Financial Statement
(1) Assessment of control
The scope of consolidation of the consolidated financial statements is determined on the basis of control. Control means that the
investor has the power with respect to the Company to obtain variable returns by engaging in relevant activities of the invested
entity and has the ability to influence the amount of its returns by applying its power with respect to the invested entity. Once any
changes in relevant facts and circumstances cause the changes in relevant elements concerned in the definition of control a
reassessment shall be made by the Company.When determining whether to include a structured entity within the scope of consolidation the Company assesses whether it
controls that structured entity based on all facts and circumstances including evaluating the structured entity’s purpose and design
identifying the types of variable returns and whether it is exposed to some or all of the variability of those returns through its
involvement in the relevant activities.
1462025 Annual Report of Zhejiang NHU Co. Ltd.
(2) Preparation method of consolidated financial statements
The Company prepares its consolidated financial statement based on the financial statements of the Company and its subsidiaries
as well as other relevant information prepared by the Company. When preparing the consolidated financial statements the
Company and its subsidiaries are required to maintain consistent accounting policies and accounting periods and significant
intercompany transactions and balances are eliminated.During the reporting period subsidiaries and businesses added as a result of business combinations under common control are
treated as having been included in the Company's consolidated scope from the date they came under the common control of the
ultimate controlling party; their operating results and cash flows from that date are included respectively in the consolidated
income statement and the consolidated cash flow statement.During the reporting period subsidiaries and businesses added through business combinations not under common control have
their revenue expenses and profit from the acquisition date to the end of the reporting period included in the consolidated income
statement and their cash flows included in the consolidated cash flow statement.The portion of a subsidiary's shareholders' equity that is not owned by the Company is presented separately as minority interests
under shareholders' equity on the consolidated balance sheet; the portion of the subsidiary's net profit or loss for the period
attributable to minority shareholders is presented under the net profit item on the consolidated income statement as the "profit or
loss of minority shareholders" item. Where losses of a subsidiary attributable to the minority shareholders exceed the minority
shareholders' interest entitled in the owners’ equity of the subsidiary at the beginning of the period the remaining balance is
allocated against the minority shareholders’ interest.
(3) Purchase of minority equity of subsidiaries
If there is a difference between the cost of the newly acquired long-term equity investment as a result of the purchase of minority
shares and the share of the subsidiary's net assets continuously calculated from the purchase date or the merger date based on the
increased shareholding ratio and without losing control if there is a difference between the disposal price of partial disposal of the
equity investment in the subsidiary and the corresponding share of the subsidiary's net assets continuously calculated from the
acquisition date or the merger date of the long-term equity investment disposal the capital reserves in the consolidated balance
sheet shall be adjusted. Where the capital reserve is insufficient to offset retained earnings are adjusted.
(4) Treatment of loss of control of a subsidiary
If control over a former subsidiary is lost due to disposal of part of an equity investment or for other reasons the remaining equity
interest shall be remeasured at its fair value on the date control is lost; the difference between the sum of the consideration
received for the disposed equity and the fair value of the remaining equity and the sum of the portion of the former subsidiary’s
1472025 Annual Report of Zhejiang NHU Co. Ltd.
net assets’ carrying amount attributable based on the original shareholding proportion and measured from the acquisition date
together with goodwill shall be recognized as investment income in the period in which control is lost.Other comprehensive income related to equity investments in the former subsidiary shall upon loss of control be accounted for on
the same basis as the direct disposal of the assets or liabilities related to the former subsidiary. Other changes in owners' equity
related to the former subsidiary that arise under the equity method shall be transferred to profit or loss for the current period upon
loss of control.
8. Classification of joint venture arrangement and accounting treatment methods for joint operation
A joint arrangement is an arrangement that is jointly controlled by two or more parties. Joint venture arrangements of the
Company are classified into joint operations and joint ventures.
(1) Joint operation
Joint operation means the joint venture arrangement in which the Company has the assets and assumes the liabilities related to
such arrangement.The Company recognizes the following items related to its interest in the joint operation and carries out accounting treatment in
accordance with relevant accounting standards for business enterprises:
* The assets separately held by the Company and assets jointly held as recognized by its share;
* The liabilities separately assumed by the Company and liabilities jointly assumed as recognized by its share;
* Income from selling the share of the Company in the output of the joint operation;
* Income from joint operation of the sold output as recognized by its share;
* The expenses separately incurred and expenses jointly incurred as recognized by its share;
(2)Joint venture
An joint venture is a joint arrangement where the Company has rights only to the net assets of the arrangement.The Company accounts for its investment in joint venture in accordance with the equity method of accounting for long-term
investments.
9. Criteria for determining cash and cash equivalents
Cash shown in the cash flow statement refers to the cash on hand and the deposits that can be used for payment at any time. Cash
equivalents mean the investments held by the Company that are short-term highly liquid easy to convert into known amounts of
cash and have little risk of value change.
1482025 Annual Report of Zhejiang NHU Co. Ltd.
10. Conversion of transactions and financial statements denominated in foreign currencies
(1) Foreign currency transactions
The Company translates foreign-currency transactions into the currency in which the accounts are kept using exchange rates
determined by the system through a reasonable method that approximate the spot exchange rates on the transaction date.The monetary items of foreign currency on the balance sheet date shall be converted by adoption of the spot exchange rate on the
balance sheet date. The exchange difference arising from the difference between the spot exchange rate on the balance sheet date
and that at the time of initial recognition or the previous balance sheet date shall be included into the current profits and losses;
The non-monetary items of foreign currency measured at historical cost shall still be converted at the approximate spot exchange
rate on the transaction date; The non-monetary items of foreign currency measured at fair value shall be converted at the spot
exchange rate of the fair value on the recognition date. The difference between the converted and original amount of recording
currency shall be included into the current profits and losses or other comprehensive income for the current period depending on
the nature of the non-monetary item.
(2)Translation of foreign currency financial statements
On the balance sheet date when the foreign currency financial statement of overseas subsidiaries is converted the items of assets
and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date while the item of
shareholders’ equity excluding the item of "undistributed profit" shall be converted at the spot exchange rate on the date of
occurrence.Items of income and expenses in the income statement are converted at a rate similar to the spot rate on the date of occurrence of
the transaction determined in a systematic and reasonable manner.All items in the statement of cash flows are converted using exchange rates determined by a systematic and reasonable method that
approximate the spot exchange rates on the dates the cash flows occur. The influence of changes in exchange rate on cash shall be
taken as adjustment items and it shall be separately presented and reflected in the item of "influence of changes in exchange rate
on cash and cash equivalents" in the cash flow statement.The difference arising from financial statement conversion shall be reflected in the item of "other comprehensive income" under
the item of “shareholders’ equity” in the balance sheet.When the Group disposes of and loses control over an overseas operation exchange differences from translation which are
presented in “equity” of the balance sheet and related to the overseas operation are all or based on the disposal proportion
transferred to the profit or loss of the period of disposal.
1492025 Annual Report of Zhejiang NHU Co. Ltd.
11. Financial instruments
Financial instruments mean the contracts that form the financial assets of one Party and the financial liabilities or equity
instruments of the other Party.
(1) Recognition and derecognition of financial instruments
A financial asset or financial liability shall be recognized when the Company becomes a party to a financial instrument contract.In case of meeting one of the following conditions the financial assets shall be derecognized: * The contractual right of
collecting the cash flow of such financial assets is terminated; * The financial assets have been transferred and comply with the
following derecognition conditions for the transfer of financial assets.If all or partial current obligations of financial liabilities have been cancelled such financial liabilities or part of such financial
liabilities shall be derecognized. If the Company (debtor) signs an agreement with the creditor so as to replace the existing
financial liabilities in the way of undertaking the new financial liabilities and the contract clauses regarding the new financial
liabilities are substantially different from those regarding the existing financial liabilities the existing financial liabilities shall be
derecognized and meanwhile the new financial liabilities shall be recognized.If the financial assets are transacted in a conventional manner accounting recognition and derecognition shall be conducted on the
transaction date.
(2) Classification and measurement of financial assets
Pursuant to the business model of managing financial assets and the contractual cash flow characteristics of financial assets upon
initial recognition the financial assets are classified into three categories as below: Financial assets measured at amortized cost
financial assets measured at fair value with changes included in other comprehensive income and financial assets measured at fair
value with changes included in the current profits and losses.When financial assets are initially recognized they shall be measured at their fair values. For the financial assets measured at fair
value through profit and loss the related transaction costs shall be included directly in the current profits and losses. For the
financial assets or financial liabilities of other categories the related transaction costs shall be included in the initially recognized
amount. For receivables arising from the sale of products or the provision of labor services which do not include or consider
major financing components the amount of consideration that the Company is expected to be entitled to be taken as the initial
confirmation amount.
1) Financial assets measured at amortized cost
The financial assets which satisfy the following conditions and are not designated as financial assets at fair value through profit or
loss will be classified by the Company as financial assets at amortized cost:
1502025 Annual Report of Zhejiang NHU Co. Ltd.
* The Company's business model for managing the financial asset is aimed at collecting the contractual cash flows;
* The contractual terms of the financial assets specify that the cash flow generated on a specific date is only the payment of
principal and interest based on the amount of outstanding principal.After initial recognition the amortized cost is applied for measurement with the effective interest rate method with respect to these
financial assets. The profits and losses arising from a financial asset which is measured at the amortized cost and is not a part of
any hedging relationship shall be included in the current profits and losses when it is terminated from recognition or is amortized
according to the actual interest rate method or is recognized as impaired.
2) Financial assets measured at fair value with changes recorded in other comprehensive income
The financial assets which satisfy the following conditions and are not designated as financial assets at fair value through profit or
loss will be classified by the Company as the financial assets at fair value through other comprehensive income:
* The Company manages the financial asset under a business model that has both the objective of collecting contractual cash
flows and the objective of selling the financial asset;
* The contractual terms of the financial assets specify that the cash flow generated on a specific date is only the payment of
principal and interest based on the amount of outstanding principal.After initial recognition the financial assets are subsequently measured at fair value. The interest impairment loss or gain and
exchange gain or loss calculated by the effective interest rate method are included in current profits and losses while other gains
or losses are included in other comprehensive income. Upon the termination of recognition the accumulated gains or losses
previously included in other comprehensive income shall be transferred out of other comprehensive income and included in the
current profits and losses.
3) Financial assets measured at fair value through profit and loss
Except for the financial assets at amortized cost and financial assets at fair value through other comprehensive income all the
remaining financial assets are classified as the financial assets at fair value through profit or loss. At initial recognition to
eliminate or significantly reduce the accounting mismatch the Company may irrevocably designate part of the financial assets
measured at amortized cost or the financial assets measured at fair value with changes included in other comprehensive income
as those measured at fair value with changes included in the current profits and losses.After initial recognition the financial assets are subsequently measured at fair value. The gains or losses generated (including
interest and dividend income) shall be included in the current profits and losses unless such financial assets are part of the hedging
relationship.The business model for managing financial assets refers to how the Company manages financial assets to generate cash flows. The
business model determines whether the cash flows of the financial assets managed by the Company are derived from collecting
1512025 Annual Report of Zhejiang NHU Co. Ltd.
contractual cash flows from selling financial assets or from both. The Company determines the business model for managing
financial assets based on objective facts and on the specific business objectives for managing financial assets determined by key
management personnel.The Company assesses the contractual cash flow characteristics of financial assets to determine whether on a specified date the
contractual cash flows of the relevant financial assets are solely payments of principal and interest on the outstanding principal
amount. Among them principal refers to the fair value of the financial asset at initial recognition; interest includes consideration
for the time value of money the credit risk associated with the amount of principal outstanding over a specific period and other
basic lending risks costs and profits. In addition the Company assesses contractual terms that could result in changes to the
timing or amount of the contractual cash flows of a financial asset to determine whether they meet the requirements of the
contractual cash flow characteristics described above.Reclassification shall occur only when the Company changes the business model for managing financial assets. In such cases all
affected financial assets shall be reclassified on the first day of the first reporting period after the change in business model;
otherwise financial assets shall not be reclassified after initial recognition.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company when initially recognized are classified as: financial liabilities at fair value through profit
or loss and financial liabilities at amortized cost. For the financial liabilities unclassified to be those measured at fair value and
changes of which are included into the current profits and losses the relevant transaction expenses shall be included into the initial
recognition amount.
1) Financial liabilities measured at fair value through profit or loss
The financial liabilities measured at fair value with changes recorded in the current profits and losses when initially recognized
shall include transaction financial liabilities and financial liabilities designated as those measured at fair value through profit or
loss. For such financial liabilities subsequently measured at fair value gains or losses generated from changes in fair value and the
dividends and interest expenses related to the financial liabilities are included in the current profits and losses.
2) Financial liabilities measured at amortized cost
For other financial liabilities the subsequent measurement shall be conducted by adoption of the effective interest rate method at
the amortized cost and the gains or losses arising from derecognition or amortization shall be included into the current profits and
losses.
3) Distinction between financial liabilities and equity instruments
Financial liabilities are liabilities that meet one or more of the following conditions:
* a contractual obligation to deliver cash or another financial asset to another.
1522025 Annual Report of Zhejiang NHU Co. Ltd.
* a contractual obligation to exchange financial assets or financial liabilities with another under conditions that are potentially
unfavorable to the Company.* a contract that will or may be settled in the Company's own equity instruments and a non-derivative instrument for which the
enterprise will be obliged to deliver a variable number of its own equity instruments.* a contract that is a derivative instrument that will or may be settled in the enterprise's own equity instruments other than by the
exchange of a fixed amount of cash or another financial asset for a fixed number of the enterprise's own equity instruments.Equity instruments refer to the contract which can prove that certain enterprise holds the residual equity of the assets after the
deduction of all liabilities.If the Company fails to avoid performing a contractual obligation with cash payment or other financial assets unconditionally then
the contractual obligation complies with the definition of financial liabilities.Where a financial instrument will or may be settled in the Company's own equity instrument considerations shall be given to
whether the enterprise's own equity instrument as used to settle the financial instrument is a substitute of cash or another financial
asset or for the purpose of entitling the holders of the financial instrument to the residual interests in the issuer's assets less all of its
liabilities. If the former this instrument is the financial liabilities of the Company; If the latter this instrument is the equity
instrument of the Company.
(4) Derivative financial instruments and embedded derivative instruments
The derivative financial instruments of the Company shall include forward foreign exchange contracts and foreign exchange
option contracts etc. It shall be initially measured at fair value on the date when the derivative transaction contract is signed and
subsequently measured at its fair value. The derivative financial instrument with positive fair value shall be recognized as an asset
and that with negative fair value shall be recognized as a liability. The gains or losses which do not comply with the hedge
accounting provisions arising from changes in fair value shall be directly included into the current profits and losses.For hybrid instruments that contain embedded derivatives where the host contract is a financial asset the hybrid instrument as a
whole shall be subject to the relevant provisions on the classification of financial assets. If the host contract is not a financial asset
and the hybrid instrument is not measured at fair value with changes recognized in profit or loss and the embedded derivative is
not closely related to the economic characteristics and risks of the host contract and a standalone instrument with the same terms
as the embedded derivative meets the definition of a derivative the embedded derivative is separated from the hybrid instrument
and accounted for as a standalone derivative financial instrument. If it is impossible to conduct separate measurement to the
embedded derivative instrument when it is obtained or on the subsequent balance sheet date the hybrid instrument shall be
designated entirely as the financial assets or financial liabilities measured at fair value and changes of which are included into the
current profits and losses.
1532025 Annual Report of Zhejiang NHU Co. Ltd.
(5) Fair value of financial instruments
The methods for determining the fair value of financial assets and financial liabilities are set out in Note 12 of Section V of the
financial report.
(6) Impairment of financial assets
The Company measures impairment and recognizes loss allowances for the following items on the basis of expected credit losses:
* Financial assets measured at amortized cost;
* Receivables and investments in debt instruments measured at fair value with changes recorded in through other comprehensive
income;
* Contracted assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue;
* Lease receivables;
* Financial guarantee contracts (except for those measured at fair value with changes recognized in profit or loss or those arising
from transfers of financial assets that do not meet the conditions for derecognition or from continuing involvement in transferred
financial assets).Measurement of expected credit loss
The “expected credit loss” refers to the weighted average of the credit losses of financial instruments weighted by the risk of
default. The “credit loss” means the difference between all contractual cash flows receivable by the Company under a contract and
discounted at the original actual interest rate and all cash flows expected to be received i.e. the present value of all cash
shortages.Taking into the reasonable and well-grounded information including past matters current situation and prediction of future
economic conditions the Company calculates the possibly weighted amount of the present value of the difference between the
cash flows receivable under the contract and the cash flows expected to be received taking the risk of default as the weight and
recognizes the expected credit loss.The Company measures the expected credit losses for financial instruments at different stages separately. If the credit risk has not
increased significantly since the initial recognition of the financial instruments and has been in the first stage its loss provision is
measured by the Company according to the amount equivalent to the expected credit loss in the next 12 months. In the second
stage if there is a significant increase in credit risk since initial recognition of the financial instruments but there is no credit
impairment its loss provision is measured by the Company according to the amount equivalent to the expected credit loss of the
instruments throughout the duration. In the third stage if there have been credit-impaired financial assets since initial recognition
of the financial instruments its loss provision is measured by the Company according to the amount equivalent to the expected
credit loss of the instruments throughout the duration.
1542025 Annual Report of Zhejiang NHU Co. Ltd.
For financial instruments with relatively low credit risks on the balance sheet date the Company assumes that their credit risks
have not increased significantly since the initial recognition and measures the provision for loss based on the expected credit loss
within the next 12 months.Lifetime expected credit losses refer to the expected credit losses resulting from all possible default events that may occur over the
entire expected life of a financial instrument. Expected credit losses over the next 12 months refer to anticipated credit losses
resulting from potential default events on financial instruments that may occur within 12 months after the balance sheet date (or
the expected life of the financial instruments if it is less than 12 months). These losses form part of the expected credit losses over
the entire duration.When measuring expected credit losses the Company shall consider the longest contractual period over which it is exposed to
credit risk (including consideration of renewal options).For financial instruments in the first stage and the second stage as well as those with lower credit risk the Company calculates
interest income based on the gross carrying amount before impairment provisions and the effective interest rate. For financial
instruments in the third stage interest income is calculated based on the amortized cost after impairment provisions have been
deducted and the effective interest rate.For notes receivable accounts receivable receivables financing other receivables contract assets and other receivable items if a
customer's credit risk characteristics are significantly different from those of other customers in the portfolio or if that customer's
credit risk characteristics change significantly the Company individually recognizes an allowance for doubtful accounts for that
receivable. Except for receivables for which allowance for doubtful accounts is recognized individually the Company classifies
receivables into portfolios based on credit risk characteristics and calculates the allowance for doubtful accounts on a portfolio
basis.Notes receivable accounts receivable and contract assets
For notes receivable accounts receivable and contracted assets regardless of whether there exist significant financing components
the Company always measures the loss reserve according to the amount equivalent to the expected credit loss in the entire
duration.When it is impossible to assess the expected credit losses of a single financial asset or contracted asset based on reasonable costs
the Company will according to the feature of credit risks classify notes receivable accounts receivable and contracted assets into
different portfolios measure the expected credit loss on a portfolio basis and determine the basis of the portfolios as below:
* Notes receivable
Notes receivable portfolio 1 - bank acceptance bills
Notes receivable portfolio 2 - commercial acceptance bills
1552025 Annual Report of Zhejiang NHU Co. Ltd.
* Accounts receivable
Accounts receivable portfolio 1: Aging composition
For notes receivable classified as portfolio the expected credit loss shall be calculated in light of the current conditions and
forecasts of future economic condition by referring to historical credit loss experience and through default risk exposure and
expected credit loss rate throughout the life.For account receivable portfolio the expected credit loss shall be calculated in light of the current conditions and forecasts of
future economic condition by referring to historical credit loss experience and preparing the comparison table between aging of
the accounts receivable and expected credit loss rate throughout the life. The aging of accounts receivable is calculated from the
date of recognition.Other receivables
The Company will according to the feature of credit risks classify other receivables into portfolios measure the expected credit
loss on portfolio basis and determine the portfolios as follows:
* Other receivables portfolio 1: Tax refund receivables
* Other receivables portfolio 2: Land deposit receivables portfolio
* Other receivables portfolio 3: Guarantee deposits receivable from customs and tax authorities
* Other receivables portfolio 4: Special capital injection funds group
* Other receivables portfolio 5: Other receivables
For other receivables classified as portfolio the expected credit loss shall be calculated by the Company using the default risk
exposure and the expected credit loss rate in the next 12 months or throughout the life. For other receivables grouped by aging the
aging is calculated from the date of recognition.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 the various types of counterparties and risk exposures by applying the default risk exposure and the expected
credit loss rates within the next 12 months or throughout the life.
(7) Transfer of financial assets
Transfer of financial assets refers to that the financial assets are transferred or delivered to the other party (transferee) other than
the issuer of such financial assets.If the Company has transferred nearly all of the risks and remunerations related to the ownership of financial assets to the
transferee such financial assets shall be derecognized; if nearly all the risks and remunerations related to the ownership of
financial assets are retained such financial assets shall not be derecognized.
1562025 Annual Report of Zhejiang NHU Co. Ltd.
If the Company does not transfer or retain nearly all of the risks and remunerations related to the ownership of financial assets it
shall deal with it according to the following situations respectively: If the Company gives up the control over such financial assets
such financial assets shall be derecognized and the assets and liabilities generated shall be recognized; If the Company does not
give up the control over such financial assets the relevant financial assets shall be recognized according to the degree of its
continuous involvement in the financial assets transferred and the relevant liabilities shall be recognized accordingly.
(8) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized financial assets and financial liabilities which is enforceable for the
time being and the Company plans to settle on a netting basis or realize financial assets and serve financial liabilities any amount
from netting of financial assets and financial liabilities is presented in the balance sheet. Apart from this financial assets and
financial liabilities shall be presented separately in the balance sheet and shall not offset each other.
12. Measurement at fair value
Fair value refers to the price that market participants can receive by selling an asset or need to pay by transferring a liability in the
orderly transactions on the measurement date.The Company measures related assets or liabilities at fair value assuming that the orderly transaction of selling assets or
transferring liabilities is conducted in the main market of related assets or liabilities; If there is no major market the Company
assumes that the transaction will be conducted in the most favorable market of related assets or liabilities. The main market (or the
most favorable market) is the trading market that the Company can enter on the measurement day. The Company adopts the
assumptions used by market participants to maximize their economic benefits when pricing the assets or liabilities.The fair value of financial assets or financial liabilities in an active market (if any) is determined by the Company at the price
quoted in the active market. If there is no financial instrument in an active market its fair value is determined by the Company via
valuation technique.When measuring non-financial assets at fair value the ability of market participants to apply the assets for the best purpose to
generate economic benefits or the ability to sell the assets to other market participants for the best purpose to generate economic
benefits shall be considered.The Company adopts the valuation technology which is applicable in the current situation and supported by sufficient available
data and other information and gives priority to the relevant observable input values. The unobservable input values are used only
when the relevant observable input values are unavailable or impracticable.For assets and liabilities measured or disclosed at fair value in financial statements the fair value level is determined according to
the lowest level input value which is of great significance to fair value measurement as a whole: The first-level input value is the
1572025 Annual Report of Zhejiang NHU Co. Ltd.
unadjusted quotation of the same assets or liabilities that can be obtained on the measurement date in an active market; The
second-level input value is directly or indirectly observable input value of related assets or liabilities except the first-level input
value; The third-level input value is the unobservable input value of related assets or liabilities.On each balance sheet date the Company reassesses the assets and liabilities recognized in the financial statements that are
continuously measured at fair value to determine whether there is a conversion between the fair value measurement levels.
13. Inventories
(1) Classification of inventory
The Company’s inventories are classified as raw material work in progress finished goods goods dispatched materials entrusted
for processing low-value consumables packaging materials development costs etc.
(2) Determination of cost
The Company's inventories are valued at actual cost on acquisition. The raw material and merchandise inventory are priced
according to the weighted average method when it is delivered.
(3) Basis for determination and method of calculation for inventory falling price reserves
On the balance sheet date inventory is measured at cost or net realizable value (whichever is lower). If the net realizable value is
lower than its cost the provision for inventory depreciation shall be made. The net realizable value is the amount obtained by
deducting the estimated incurred cost till completion estimated selling expenses and the relevant taxes and dues from the
estimated selling price of inventory. In determining net realizable value of an inventory based on obtained proof the Group
considers the purpose of the inventory and the impact of any matters occurring after the balance sheet date. The Company usually
provides for inventory write-down on an individual inventory item basis. At the balance sheet date if the factors that previously
caused a write-down of inventory value have ceased to exist the provision for inventory write-down shall be reversed to the extent
of the amount previously recognized.
(4) Inventory counting system
The inventory system of the Company adopts a perpetual inventory system.
(5) Amortization of low-value consumables and packaging materials
The Company expenses low-value consumables using the one-time write-off method upon issuance. Packaging materials for
turnover are amortized using the one-time write-off method.
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14. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries associates and joint ventures. Where the Company can
exercise significant influence over the investee the investee is an associate of the Company.
(1) Determination of initial investment cost
For the long-term equity investment formed by business merger: For the long-term equity investment obtained through the
business merger under the common control the share of book value in the consolidated financial statement of the owner’s equity
which the final control party has obtained from the merged party on the merger date shall be taken as the investment cost; For the
long-term equity investment obtained through the business merger under the non-common control the merger cost shall be taken
as the investment cost of long-term equity investment.For the long-term equity investment obtained by other means: For the long-term equity investment obtained through cash payment
the purchase price actually paid shall be taken as the initial investment cost; For the long-term equity investment obtained through
issuance of equity securities the fair value of the equity securities issued shall be taken as the initial investment cost.
(2) Method of subsequent measurement and recognition of profit and loss
The Company’s investment in subsidiaries shall be subject to accounting by using the cost method unless the investment meets the
criteria for held for sale and the investment in associates and joint ventures shall be subject to accounting by using the equity
method.For long-term equity investments measured according to the cost method except for actual price paid when the investment is
obtained or the cash dividends or profits that are included in the consideration that has been declared but not yet paid the cash
dividend or profit declared by the invested entity will be recognized as the investment income and included into the current profits
and losses.When the equity method is adopted for calculation of the long-term equity investment if the initial investment cost of long-term
equity investment is more than the share of fair value of the identifiable net assets of the invested unit that shall be enjoyed at the
time of investment the investment cost of long-term equity investment shall not be adjusted; If the initial investment cost is less
than the share of fair value of the identifiable net assets of the invested unit that shall be enjoyed at the time of investment the
book value of long-term equity investment shall be adjusted and the difference shall be included into the current profits and
losses.When the equity method is adopted according to the share of the net profit and loss and other comprehensive income realized by
the invested entity the investment income and other comprehensive income shall be recognized respectively and adjusts the book
value of the long-term equity investment; The book value of the long-term equity investment is reduced correspondingly in
1592025 Annual Report of Zhejiang NHU Co. Ltd.
accordance with the portion of the profits or cash dividends declared and distributed by the invested entity; For changes in owner’s
equity other than net profit and loss other comprehensive income and profit distribution of the invested entity the book value of
long-term equity investment is adjusted and included in capital reserves (other capital reserves). When confirming the share of net
profit and loss of the invested entity based on the fair value of various identifiable assets of the invested entity when the
investment is made the net profit of the invested entity is recognized after adjustment in accordance with the accounting policies
and accounting periods of the Company.In the case of being able to exert a significant influence on the invested unit or implement joint control (but not constitute control)
due to investment increase and other reasons the sum of the fair value of the equity originally held and the new investment cost on
the date of conversion shall be taken as the initial investment cost calculated according to the equity method. For equity
investments that were originally classified as non?trading equity instruments measured at fair value with changes recognized in
other comprehensive income the cumulative fair value changes previously recognized in other comprehensive income relating to
them are transferred to retained earnings when they are subsequently accounted for under the equity method.If due to the disposal of part of an equity investment or for other reasons joint control of or significant influence over an investee
is lost the remaining equity interest after the disposal shall be accounted for from the date on which joint control or significant
influence is lost in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
Financial Instruments and the difference between its fair value and carrying amount shall be recognized in profit or loss for the
current period. Other comprehensive income recognized by the original equity investment due to the adoption of the equity
method is calculated on the same basis as the invested entity's direct disposal of related assets or liabilities when the equity method
is terminated. Other changes in equity related to original equity investments are transferred to current profit or loss.If the Company loses control over an investee due to the disposal of part of its equity investment and the remaining equity can be
used upon disposal to exercise joint control or significant influence over the investee the equity method shall be used for
accounting instead and the remaining equity shall be deemed to be accounted and adjusted by using the equity method when it is
acquired. If the remaining equity upon disposal cannot be used to exercise joint control or significant influence over the investee
the accounting treatment shall be carried out in accordance with the provisions of Accounting Standards for Business Enterprises
No. 22 - Recognition and Measurement of Financial Instruments and the difference between the fair value and the book value
when the control is deprived of shall be included in the current profits and losses.If due to additional capital injections by other investors the Company’s shareholding percentage decreases and the Company
thereby loses control but can still exercise joint control over or exert significant influence on the investee the Company shall
based on the new shareholding percentage recognize the portion of the investee’s net asset increase resulting from the capital
increase that the Company is entitled to and shall include in current profit or loss the difference between that amount and the
1602025 Annual Report of Zhejiang NHU Co. Ltd.
original carrying amount of the long?term equity investment corresponding to the portion of the shareholding percentage to be
transferred; thereafter the Company shall under the new shareholding percentage make adjustments by treating the investment as
having been accounted for using the equity method from the date of acquisition.For the unrealized profits and losses from the internal transaction incurred between the Company and the associates or joint
ventures the part that belongs to the Company shall be calculated according to the shareholding proportion and the investment
profits and losses shall be recognized on the basis of offset. However if the unrealized loss from the internal transaction between
the Company and the invested unit belongs to the impairment loss of the assets transferred the offset shall not be conducted.
(3) Criteria for judging joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement and exists only when requiring the unanimous
consent of the parties sharing control before making decisions about the relevant activities of the arrangement. When determining
whether joint control exists first determine whether the arrangement is collectively controlled by all the parties or by a
combination of the parties and then determine whether decisions about the arrangement's relevant activities require the unanimous
consent of those parties that collectively control the arrangement. If all parties or a group of parties must act in concert to
determine the relevant activities of an arrangement those parties are considered to collectively control the arrangement; if there
exists a combination of two or more parties that can collectively control an arrangement joint control does not exist. When
assessing whether there is joint control protective rights are not taken into account.Significant influence refers to the investor’s right to participate in an invested entity's financial and business decision-making but
not to control or jointly control the formulation of these policies with other parties. In determining whether the investor can exert
significant influence over the investee the investor considers the voting rights held directly or indirectly in the investee as well as
the impact of exercisable potential voting rights held by the investor and other parties assuming their conversion into equity
interests in the investee. This includes the effects of warrants share options and convertible corporate bonds issued by the
investee.When the Company directly or indirectly via subsidiaries owns more than 20% (20% inclusive) but less than 50% of the voting
shares of the invested unit it will be generally regarded as having a significant influence on the invested unit except there is a
clear evidence proving that the Company cannot participate in the production and business decision-making thereby not having a
significant influence on the invested unit under this situation; Generally when the Company owns less than 20% (exclusive) of the
voting shares of the invested unit it will be regarded as having no significant influence on the invested unit except there is a clear
evidence proving that the Company can participate in production and business decision-making thereby having a significant
influence on the invested unit under this situation.
(4) Impairment test method and impairment provision accrual method
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For investments in subsidiaries associates and joint ventures the method of providing for asset impairment is set out in Note 20 of
Section V of the financial report.
15. Fixed assets
(1) Recognition criteria
Fixed assets of the Company mean the tangible assets held for the production of goods provision of labor services leasing or
management and with a service life exceeding one fiscal year.Only when the economic benefits related to such fixed assets are likely to flow into the enterprise and the cost of such fixed assets
can be reliably measured the fixed assets can be recognized.The fixed assets of the Company shall be initially measured at the actual cost at the time of obtaining.Subsequent expenditures related to fixed assets shall be included in the cost of the fixed assets when it is probable that the related
economic benefits will flow to the Company and their costs can be measured reliably; routine repair expenses of fixed assets that
do not meet the capitalization criteria for subsequent expenditures shall when incurred be charged to current profit or loss or to
the cost of the related asset based on the beneficiary. For the replaced parts derecognize their carrying amount.
(2) Depreciation method
The Company shall recognize the depreciation according to the straight-line method. The depreciation shall start to be recognized
when the fixed assets reach the estimated serviceable condition. When the fixed assets are derecognized or are divided into the
held-for-sale non-current assets the recognization of depreciation shall be stopped. Without considering the impairment provision
the Company shall recognize the annual depreciation rate of various fixed assets according to the categories of fixed assets
estimated service life and estimated residual value as follows:
Ratio of remaining Yearly depreciation
Categories Depreciation method Depreciable life (years)
value (%) (%)
Houses and buildings Straight-line method 7 -70 5 13.57-1.36
General equipment Straight-line method 5 -10 5 19.00-9.50
Dedicated equipment Straight-line method 5 -15 5 19.00-6.33
Means of transport Straight-line method 5 -7 5 19.00-13.57
Wherein for the fixed assets that have recognized the impairment provision the depreciation rate shall be calculated and
recognized on the premise of deducting the accumulated amount of the fixed assets impairment provision which has been
recognized.
(3) The methods for impairment testing of fixed assets and the methods for calculating impairment provisions are set out in Note
20 of Section V of the financial report.
1622025 Annual Report of Zhejiang NHU Co. Ltd.
(4) At the end of each year the Company shall review the service life estimated net residual value and depreciation method of
fixed assets.If there is any difference between the amount of estimated service life and the original estimates the service life of fixed assets
shall be adjusted; If there is any difference between the estimated net residual value and the originally estimate the estimated net
residual value shall be adjusted.
(5) Disposal of fixed assets
When fixed assets are disposed of or when no economic benefits can be expected through use or disposal thereof such fixed assets
will be derecognized. The income from disposal of the fixed assets through sale transfer scrapping or damage with the book value
thereof and relevant taxes deducted is included in the current profit or loss.
16. Projects under construction
The cost of construction in progress of the Company is determined at the actual construction expense including various necessary
construction expenditures incurred during the period of construction capitalizable borrowing costs and other related expenses
before the project reaches the predetermined conditions for use.Construction in progress shall be transferred to fixed assets when it has reached the working condition for its intended use.The method for making impairment provisions for construction in progress is set out in Note 20 of Section V of the financial
report.
17. Borrowing costs
(1) Criteria for recognition of capitalized borrowing costs
If the borrowing costs incurred by the Company can be directly attributed to the acquisition or production of assets that meet the
capitalization requirements they are capitalized and included in the relevant asset costs; Other borrowing costs when incurred are
recognized as expenses according to the amount incurred and included in the current profits and losses. Capitalization of
borrowing costs begins when the following three conditions are fully satisfied:
* expenditures for the assets (including cash paid transferred non-currency assets or expenditure for holding debt liability for the
acquisition construction or production of assets qualified for capitalization) have been incurred;
* borrowing costs have been incurred;
* acquisition construction or production that are necessary to enable the asset to reach its intended usable or saleable condition
have commenced.
1632025 Annual Report of Zhejiang NHU Co. Ltd.
(2) Capitalization period of borrowing costs
When the assets eligible for capitalization for acquisition and construction or production of the Company reach the estimated
serviceable or marketable condition the capitalization of borrowing costs shall be stopped. The borrowing costs incurred after the
assets eligible for capitalization reach the estimated serviceable or marketable condition shall be recognized as expense according
to the incurred amount at the time of occurrence and included into the current profits and losses.If the assets eligible for capitalization are interrupted abnormally in the acquisition and construction or production process and the
interruption time lasts for more than 3 months continuously the capitalization of borrowing costs shall be suspended; The
capitalization of borrowing costs during the normal interruption period shall be continued.
(3) Calculation of capitalization rate and amount of borrowing costs
The amount to be capitalized is the actual interest expense incurred on the designated borrowings less any bank interest earned
from unused funds of the designated borrowings or any investment income on the temporary investment of those funds. The
amount to be capitalized on the general borrowings is calculated by applying a capitalization rate to the weighted average of the
excess amounts of cumulative expenditures on the asset over and above the amounts of the designated borrowings. Capitalization
rate is calculated and determined based on the weighted average interest rate of general loans.During the period of capitalization exchange differences arising from special borrowings in a foreign currency shall be fully
capitalized and exchange differences arising from general borrowings in a foreign currency shall be recognized in profits and
losses.
18. Intangible assets
The intangible assets of the Company shall include land use right software patent right non-patented technologies etc.The intangible assets shall be initially measured at cost and its service life shall be analyzed and judged at the time of obtaining the
intangible assets. If the service life is limited from the date when the intangible assets are available for use the amortization
method which can reflect the expected realization method of the economic benefits related to such assets shall be adopted for
amortization within the expected service life; If the expected realization method is unable to be reliably recognized the intangible
assets shall be amortized according to the method of line; The intangible assets with uncertain service life shall not be amortized.The amortization method of intangible assets with limited service life is as follows:
Basis for determining Amortization
Category Service life Notes
useful life method
50 years and 70 According to the period
Land use rights Method of line
years stated in the certificate.
1642025 Annual Report of Zhejiang NHU Co. Ltd.
Basis for determining Amortization
Category Service life Notes
useful life method
According to the
Software 10 years Method of line
estimated useful life
According to the
Patent rights 10 years Method of line
estimated useful life
Non-patented According to the
15 years Method of line
technologies estimated useful life
The Company shall review the service life and amortization method of intangible assets with the limited service life at the end of
each year. If the result is different from the previous estimate the original estimate shall be adjusted and it shall be disposed
according to the changes in accounting estimates.If it is expected that certain intangible asset is unable to bring the future economic benefits to the enterprise on the balance sheet
date the book value of such intangible asset shall be completely transferred into the current profits and losses.The method used to provide for impairment of intangible assets is set out in Note 20 of Section V of the financial report.
19. Research and development expenses
The R&D expenses of the Company are the expenses directly related to its R&D activities including: salaries and wages of R&D
personnel; directly incurred expenses; depreciation expenses and long-term deferred expenses; amortization of intangible assets;
design expenses; equipment commissioning and testing expenses; commissioned R&D expenses; and other expenses. The salaries
of R&D personnel are allocated to R&D expenses based on project hours.The expenses for internal research and development projects of the Company are divided into expenses in the research phase and
expenses in the development phase.Expenses in the research phase are recorded into the profits and losses for the current period when they occur.Expenditures during the development phase can only be capitalized when they satisfy the following conditions simultaneously: It
is technically feasible to finish intangible assets for use or sale; there is an intention to complete and use or sell the intangible
assets; the methods for the intangible assets to generate economic benefits including those which can prove that there is a market
for the products manufactured by applying the intangible assets or that there is a market for the intangible assets themselves and
that the intangible assets will be used internally can prove their usefulness; there are sufficient technologies financial resources
and other resources that can support the development of the intangible assets and the enterprise is able to use or sell the intangible
assets; and the development expenditures of the intangible assets can be reliably measured. Development expenditures that do not
meet the above conditions are recognized in profit or loss for the current period.
1652025 Annual Report of Zhejiang NHU Co. Ltd.
The research and development projects of the Company will enter the development stage after the above conditions are met the
technical and economic feasibility studies are completed and the project is approved.Capitalized development-stage expenditures are presented on the balance sheet as development expenditures and are transferred to
intangible assets on the date the project reaches its intended use.
20. Partial impairment of long-term assets
The impairment of assets such as long-term equity investments in subsidiaries associates and joint ventures investment properties
subsequently measured using the cost model fixed assets construction in progress right-of-use assets intangible assets goodwill
etc. (excluding inventories deferred tax assets and financial assets) shall be determined as follows:
To judge whether there is a sign of possible impairment in the assets on the balance sheet date if there is a sign of impairment the
Company shall estimate its recoverable amount to conduct impairment test. An impairment test will be conducted every year for
intangible assets whose goodwill and service life are uncertain due to a business combination and intangible assets not yet
available for their intended use regardless of whether there are signs of impairment.The recoverable amount is determined based on the higher of the net value of the fair value of assets minus the disposal costs and
the present value of the estimated future cash flow of assets. The Company shall estimate its recoverable amount based on a single
asset; for the recoverable amount of a single asset which is difficult to estimate the recoverable amount of the assets group shall
be recognized on the basis of the assets group to which such asset attributes. The identification of an asset group is based on
whether the main cash inflows generated by the asset group are independent of the cash inflows of other assets or asset groups.When the recoverable amount of assets or assets group is less than its book value the Company shall write down its book value to
the recoverable amount with the written-down amount included into the current profits and losses and withdraw the
corresponding assets impairment provision simultaneously.For the impairment test to goodwill the Company shall as of the purchasing day allocate on a reasonable basis the book value of
the goodwill formed by merger of enterprises to the relevant asset groups or if there is a difficulty in allocation to allocate it to the
sets of asset groups. Relevant asset groups or the sets of asset groups mean those can benefit from the synergy of business
combination and are not larger than the reportable segment determined by the Company.When carrying out impairment testing if an asset group or a combination of asset groups related to goodwill shows indications of
impairment first perform impairment testing on the asset group or combination of asset groups that do not include goodwill
calculate the recoverable amount and recognize the corresponding impairment loss. Then an impairment test is performed on the
asset group or combination of asset groups that includes goodwill comparing its carrying amount with its recoverable amount. If
the recoverable amount is lower than the carrying amount an impairment loss on goodwill is recognized.
1662025 Annual Report of Zhejiang NHU Co. Ltd.
The assets impairment loss shall not be reversed in the following accounting periods once recognized.
21. Long-term deferred expenses
The long-term deferred expenses incurred by the Company are measured at actual cost and amortized on a straight-line basis over
the estimated benefit period. For long-term deferred expense items that cannot benefit future accounting periods their amortized
value shall be fully charged to profit or loss for the current period.
22. Employee compensation
(1) Scope of employee compensation
Employee compensation refers to all forms of consideration or compensation given by the Company in exchange for service
rendered by employees or for the termination of employment relationship. The payroll includes short-term compensation
post-employment benefits dismission welfare and other long-term employee’s benefit. The welfare provided by the enterprise to
the spouse children dependents of an employee family dependents of a deceased employee or other beneficiaries shall also be
included into employee remuneration.Based on liquidity employee compensation is presented separately in the balance sheet under the "employee compensation
payable" item and the "long-term employee compensation payable" item.
(2) Accounting treatment method of short-term compensation
During the accounting period when the employees provide services the Company shall recognize the actual employee wage
bonus and housing accumulation fund as well as such social insurance premium as medical insurance premium industrial injury
insurance premium and maternity insurance premium paid for the employee according to the specified benchmark and proportion
as liabilities and include them into the current profits and losses or relevant assets cost.
(3) Accounting treatment of post-employment benefits
The welfare after demission plans shall include defined contribution plans and defined benefit plans. Wherein defined
contribution plans refer to that the enterprise shall not undertake any further payment obligations on the welfare after demission
plans after depositing a fixed expense to the independent fund; Defined benefit plans refer to the welfare after demission plans
except the defined contribution plans.Defined contribution plans shall include basic endowment insurance unemployment insurance etc.During the accounting period when the employees provide services the amount to be deposited according to the defined
contribution plans is recognized as a liability and included in the current profits and losses or related asset costs.
1672025 Annual Report of Zhejiang NHU Co. Ltd.
For the defined benefit plans the actuarial evaluation shall be conducted by the independent actuary on the annual balance sheet
date and the cost to provide welfare by the expected accumulated welfare unit method shall be recognized. The employee
compensation costs arising from the Company's defined benefit plans include the following components:
* Service cost including current service cost previous service cost and settlement gains or losses. Wherein current service cost
refers to the increase amount of the present value of the obligations in the defined benefit plans due to employee services during
the current period; Previous service cost refers to the increase or decrease of the present value of the obligations in the defined
benefit plans related to the employee services during the previous period due to the changes in the defined benefit plans.* The net interest on the net liability or net asset in the defined benefit plans shall include the interest income of the plan assets
the interest expenses of the obligations in the defined benefit plans and the interest affected by the upper limit of assets.* Changes in net liability or net asset from re-measurement of defined benefit plans.Unless other accounting standards require or permit employee benefit costs to be included in the cost of assets the Company will
recognize the above items * and * in profit or loss for the current period; item * will be recognized in other comprehensive
income and will not be reclassified to profit or loss in subsequent accounting periods and upon termination of the originally
established defined benefit plan the portions previously recognized in other comprehensive income will be fully transferred to
retained earnings within equity.
(4) Accounting treatment of dismissal welfare
If the dismissal welfare is provided by the Company to employees the employee compensation liabilities arising from the
dismissal welfare shall be determined at the earliest of the following two and included in the current profits and losses: When the
Company cannot unilaterally withdraw the dismissal welfare provided due to the termination of labor relations plan or layoff
proposal; When the Company determines the costs or expenses associated with the restructuring involving the payment of
dismissal welfare.For the employee’s internal retirement plan the economic compensation before the official retirement date belongs to the
dismissal welfare and the intended payment of the wage and social insurance premium of the internal retirement employees
during the period when the employees stop providing services until the official retirement date shall be included into the current
profits and losses at one time. welfare after demission. The economic compensation (such as normal pension) after the official
retirement date shall be disposed according to the
(5) Accounting treatment methods of other long-term employee benefits
Other long-term employee welfare provided by the Company for employees which complies with the conditions of defined
contribution plans shall be disposed according to the above relevant provisions of defined contribution plans. For those complying
with the defined benefit plans they shall be disposed according to the above relevant provisions of defined benefit plans but
1682025 Annual Report of Zhejiang NHU Co. Ltd.
“Changes in net liability or net asset from re-measurement of defined benefit plans” of the relevant employee remuneration cost
shall be included into the current profits and losses or relevant assets cost.
23. Estimated liabilities
The Company shall recognize the obligations related to contingencies as estimated liabilities when all of the following conditions
are satisfied:
(1) The obligation is a present obligation of the Company;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be measured reliably.
Provisions are initially measured at the best estimate of the expenditure required to settle the present obligation taking into
account factors such as risks uncertainties and the time value of money related to contingent matters. Where the effect of the time
value of money is material the best estimate shall be determined by discounting the related future cash outflow. The Company
reviews the carrying amounts of provisions at the balance sheet date and adjusts the carrying amounts to reflect the best current
estimates.If all or part of the expenses required to pay off the estimated liabilities are expected to be compensated by a third party or other
parties the amount of compensation is recognized separately as an asset when it is basically recognized that it can be received.The amount recognized for the reimbursement shall not exceed the book value of the estimated liability.
24. Share-based payments and equity instruments
(1) Type of share-based payment
Share-based payment is classified into cash-settled share-based payment and equity-based share-based payment.
(2) Determination method of the fair value of equity instruments
The fair value of equity instruments such as options granted by the Company in an active market is determined by the price
quoted in the active market. The fair value of granted equity instruments such as options without active market is determined by
option pricing model. The selected option pricing model considers the following factors: A. The exercise price of options; B. The
validity period of the option; C. The current price of the underlying shares; D. Estimated volatility of share price; E. Expected
dividend of shares; F. Risk-free interest rate within the validity period of the option.
(3) Basis for determining the best estimation of feasible equity instruments
On each balance sheet date during the waiting period the Company makes the best estimate based on the latest available follow-up
information such as changes in the number of employees with feasible rights and revises the estimated number of equity
1692025 Annual Report of Zhejiang NHU Co. Ltd.
instruments with feasible rights. On the vesting date the final estimated number of vesting rights and interests instruments shall be
consistent with the actual number of vesting rights.
(4) Accounting treatment related to implementation modification and termination of share-based payment plan
Equity-settled share-based payment is measured at the fair value of equity instruments granted to employees. If the right is
exercised immediately after the grant the relevant costs or expenses shall be included in the fair value of equity instruments on the
grant date and the capital reserve shall be increased accordingly. If the rights can be exercised only after the services within the
waiting period are completed or the specified performance conditions are met on each balance sheet date within the waiting period
based on the best estimate of the number of equity instruments available the services obtained in the current period shall be
included in the relevant costs or expenses and capital reserve according to the fair value on the grant date of equity instruments.After the vesting date the recognized related costs or expenses and the total owner's equity will not be adjusted.Cash-settled share-based payment shall be measured according to the fair value of liabilities calculated and determined on the
basis of shares or other equity instruments undertaken by the Company. If the right is exercised immediately after the grant the
fair value of the liabilities assumed by the Company shall be included in the relevant costs or expenses on the grant date and the
liabilities shall be increased accordingly. For cash-settled share-based payment that is feasible only after the service within the
waiting period is completed or the specified performance conditions are met on each balance sheet date within the waiting period
based on the best estimation of the feasibility and according to the fair value of the liabilities assumed by the Company the
services obtained in the current period are included in the costs or expenses and corresponding liabilities. On each balance sheet
date and settlement date before the settlement of related liabilities the fair value of liabilities shall be re-measured and the
changes shall be included in the current profits and losses.When the Company modifies the share-based payment plan if the fair value of the granted equity instruments is increased by
modification the increase of the services obtained shall be recognized according to the increase of the fair value of the equity
instruments; If the number of granted equity instruments is increased by modification the fair value of the increased equity
instruments will be recognized as the increase in services obtained accordingly. The increase of fair value of equity instruments
refers to the difference between the fair values of equity instruments before and after modification on the modification date. If the
total fair value of share-based payment is reduced by modification or the terms and conditions of the share-based payment plan are
modified in other ways that are unfavorable to employees the accounting treatment of the obtained services will continue as if
with no changes unless the Company cancels some or all of the granted equity instruments.During the waiting period if the granted equity instruments are cancelled (except those cancelled due to non-market conditions
that do not meet the feasible rights conditions) the Company will treat the cancellation of the granted equity instruments as an
accelerated exercise and immediately record the amount to be recognized in the remaining waiting period into the current profits
1702025 Annual Report of Zhejiang NHU Co. Ltd.
and losses and recognize the capital reserve at the same time. If the employee or other party can choose to meet the non-feasible
right condition but fails to meet it during the waiting period the Company will treat it as a cancellation for granting equity
instruments.
25. Income
Disclose the accounting policies adopted for revenue recognition and measurement according to the type of business
(1) General principles
The Company recognizes the revenue when it performs its obligations under the contract that is when the customer obtains the
control right of related goods or services.If the contract contains two or more performance obligations the Company at the beginning of the contract allocates the
transaction price to each individual performance obligation according to the relative proportion of the individual selling price of
the goods or services committed by each individual performance obligation. The Company measures the income according to the
transaction price allocated to each individual performance obligation.If one of the following conditions is met it belongs to the performance obligation within a certain period of time; otherwise it
belongs to the performance obligation at a certain time point:
* The customer acquires and consumes the economic benefits arising from the Company's performance while the Company
performs the contract.* Customers can control the goods under construction during the performance of the Company.* The commodities produced by the Company during the performance possess have irreplaceable usage and the Company has
the right to collect payment for the performance part accumulated so far during the entire contract period.For the performance obligations performed within a certain period of time the Company recognizes the revenue according to the
performance schedule within that period of time. If the performance schedule cannot be reasonably determined and the costs
already incurred by the Company are expected to be compensated the Company recognizes the revenue according to the amount
of the incurred costs until the performance schedule can be reasonably determined.For the performance obligations performed at a certain point of time the Company will recognize the revenue when the customer
acquires the right of control over relevant commodities or services. While determining whether the customer has acquired the
control over the commodities or services the Company will take the following into consideration:
* The Company has the current collection right for the such commodities or services that is the customer has the current
payment obligation for such commodities.
1712025 Annual Report of Zhejiang NHU Co. Ltd.
* The Company has transferred the legal title of such commodities to the customer that is the customer already has the legal
title of such commodities.* The Company has transferred the physical commodities to the customer that is the customer has possessed the physical
commodities.* The Company has transferred the major risks and rewards of the commodity title to the customer that is the customer has
acquired the major risks and rewards of the commodity title.* The customer has accepted the goods or services.* Other signals that the customer has acquired control over commodities.
(2) Specific methods
Sales revenue from commodities
The Company primarily sells nutrition products aroma chemicals products and new materials which are performance obligations
satisfied at a point in time. Domestic sales revenue is recognized when the Company delivers the product to the contractually
agreed delivery location the customer confirms acceptance payment has been received or the right to receive payment has been
obtained and it is probable that related economic benefits will flow to the Company. For export sales settled on an FOB or CIF
basis revenue is recognized when the Company has declared the products to customs in accordance with the contract obtained the
bill of lading and has received payment or obtained the right to receive payment provided that it is probable that the related
economic benefits will flow in; for export sales settled on a DDP basis revenue is recognized when the Company has delivered the
goods to the designated destination in the importing country and the customer has confirmed acceptance and payment has been
received or the right to receive payment has been obtained provided that it is probable that the related economic benefits will flow
in.Different operating modes in the same kind of business lead to different revenue recognition methods and measurement
methods
None
26. Contract costs
Contract costs include incremental costs incurred to obtain the contract and costs of contract performance.Incremental cost incurred to obtain the contract refers to the cost that will not be incurred if the Company does not obtain the
contract (such as sales commission etc.). If such costs are expected to be recoverable the Company recognizes them as costs to
obtain a contract and records them as an asset. The Company recognizes other costs incurred in obtaining a contract in profit or
loss when incurred except for incremental costs that are expected to be recovered.
1722025 Annual Report of Zhejiang NHU Co. Ltd.
Costs incurred to fulfill a contract that do not fall within the scope of other enterprise accounting standards such as inventory and
simultaneously meet the following conditions will be recognized by the company as a contract fulfillment cost and recognized as
an asset:
* The cost is directly related to a current or expected contract including direct labor direct materials manufacturing costs (or
similar costs) costs clearly borne by customers and other costs only incurred due to the contract;
* The costs enrich the Company's resources for future contract performance;
* The cost is expected to be recovered.Assets recognized as costs of obtaining a contract and assets recognized as costs of fulfilling a contract (hereinafter referred to as
"assets related to contract costs") are amortized on the same basis as the recognition of revenue from the goods or services related
to the asset and are charged to profit or loss for the period; if the amortization period does not exceed one year they are expensed
as incurred.In case the book value of assets related to contract costs is higher than the difference between the two items below the Company
will accrue the impairment provision for the extra part and recognize that part as an impairment loss:
* Estimated residual consideration to be obtained by the Company from the transfer of commodities or services related to the
assets;
* The costs expected to be incurred for the transfer of the relevant goods or services.
27. Government subsidies
The government subsidies shall be recognized when the conditions attached thereto are satisfied and the subsidies can be received.The governmental subsidy of monetary assets shall be measured according to the amount received or to be received. The
governmental subsidy of non-monetary assets shall be measured at the fair value; If the fair value cannot be reliably obtained it
shall be measured according to the nominal amount of RMB 1.Governmental subsidy related to assets refers to the governmental subsidy obtained by the Company and used for acquisition and
construction or forming long-term assets by other means; otherwise it shall be taken as the governmental subsidy related to
income.If government documents do not specify the object of subsidy and long-term assets can be formed the part of government subsidy
corresponding to the value of assets shall be regarded as the government subsidy related to assets and the rest as the government
subsidy related to income. If it is difficult to distinguish them the whole government subsidy shall be regarded as the government
subsidy related to income.
1732025 Annual Report of Zhejiang NHU Co. Ltd.
If asset-related government subsidies are recognized as a deferred income they shall be included in the profits and losses in stages
according to a reasonable and systematic method within the use period of the relevant assets. Governmental subsidy related to
income which is used to compensate the relevant cost or loss already incurred shall be included into the current profits and losses;
Those used for compensation of the relevant cost or loss in the subsequent periods shall be included into the deferred income and
shall be included into the current profits and losses during the recognition period of the relevant cost or loss. The governmental
subsidy measured at the nominal amount shall be directly included in the current profits and losses. The Company shall adopt the
same method to dispose the same or similar governmental subsidy business.Government subsidies related to daily activities shall be included in other income based on the economic substance of the
transactions. Government subsidies unrelated to the daily activities are included in non-operating revenue.When a recognized government grant must be returned: if at initial recognition it reduced the carrying amount of the related asset
adjust the asset's carrying amount; if there is a balance of related deferred income offset that deferred income balance and
recognize the excess in profit or loss; in other cases recognize the refund directly in profit or loss.For policy-based preferential loan interest subsidies received when the finance department disburses the subsidy funds to the
lending bank the actual loan amount received will be recorded as the loan value. Borrowing costs will be calculated based on the
loan principal and the applicable policy-based preferential interest rate. If the finance department directly disburses the interest
subsidy to the Company the interest subsidy shall be offset against borrowing costs.
28. Deferred income tax assets / deferred income tax liabilities
Income tax comprises current income tax and deferred income tax. Except for deferred tax arising from adjustments to goodwill
resulting from a business combination or deferred tax related to transactions or events recognized directly in owner's equity all
other deferred tax is recognized as income tax expense in profit or loss.The Company recognizes deferred taxes using the balance sheet liability method based on temporary differences between the
carrying amounts of assets and liabilities at the balance sheet date and their taxable bases.All taxable temporary differences shall be recognized as deferred income tax liabilities except for the taxable temporary
differences that arise from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities arising from transactions that have the
following characteristics: the transaction is not a business combination and at the time of the transaction neither accounting profit
nor taxable profit is affected (except for individual transactions in which the initial recognition of the assets and liabilities gives
rise to equivalent taxable temporary differences and deductible temporary differences);
1742025 Annual Report of Zhejiang NHU Co. Ltd.
(2) For taxable temporary differences associated with investments in subsidiaries associates and joint ventures the Company is
able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.For deductible temporary differences and deductible losses and tax credits that can be carried forward to later years the Company
recognizes the resulting deferred tax assets to the extent that it is probable that taxable profits will be available in the future unless
those deductible temporary differences arise in the following transactions:
(1) The transaction is not a business combination and at the time of the transaction neither accounting profit nor taxable profit is
affected (except for individual transactions in which the initial recognition of the assets and liabilities gives rise to equivalent
taxable temporary differences and deductible temporary differences);
(2) The deferred income tax assets shall be recognized if the deductible temporary differences associated with investments in
subsidiaries associates and joint ventures simultaneously meet the following conditions: It is probable that the temporary
difference will reverse in the foreseeable future and that taxable profits will be available in the future against which the temporary
difference can be utilized.On the balance sheet date the Company measures deferred tax assets and deferred tax liabilities at the tax rates that are expected to
apply to the periods when the asset is expected to be recovered or the liability is expected to be settled and reflects on the balance
sheet date the tax effects of the expected manner of recovery of the asset or settlement of the liability.On the balance sheet date the Company will review the carrying amount of the deferred income tax assets. If no sufficient taxable
income is likely to be obtained to offset the benefits of deferred income tax assets in the future the carrying amount of deferred
income tax assets shall be written down. The amount written down shall be reversed when it is probable that sufficient taxable
profit will be available.On the balance sheet date the deferred income tax assets and the deferred income tax liabilities will be presented by the net
amount after offsetting when the following conditions are fulfilled:
(1) The taxable entity within the Company is granted the legal rights of net settlement of current income tax assets and current
income tax liabilities;
(2) Deferred income tax assets and deferred income tax liabilities relate to income taxes levied by the same tax authority on the
same taxable entity within the Company.
1752025 Annual Report of Zhejiang NHU Co. Ltd.
29. Lease
(1) Identification of a lease
At the commencement date of a contract the Company as a lessee or lessor assesses whether throughout the period of use the
customer has the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the
use of the identified asset. If a party to the contract conveys the right to control the use of one or more identified assets for a given
period to obtain a consideration the Company shall recognize the contract as a lease or containing a lease.
(2) Accounting treatment method for leasing by the lessee
At the commencement date of the lease term the Company recognizes all right-of-use assets and lease liabilities except for
short-term leases and low-value asset leases according to applicable business standards.The accounting policies for right-of-use assets are set out in Note 30 of Section V of this financial report.Lease liabilities are initially measured at the present value of the lease payments not yet paid as of the lease commencement date
discounted using the interest rate implicit in the lease. The incremental borrowing rate will be adopted as the discount rate if the
interest rate implicit in the lease is not determinable. The lease payment includes fixed amount (and the substantially fixed amount)
less the relative amount of any lease incentives enjoyed if there are lease incentives; the index or rate-based variable amount; the
exercise price of a purchase option provided that the lessee reasonably determines that it will exercise the option; the payment for
exercising the option to terminate the lease provided that it is reflected in the lease period that the lessee will exercise the option to
terminate the lease; and the estimated amount to be paid according to the residual value of guarantee provided by the lessee. The
interest expense of the lease liabilities during each period of the lease term will be calculated at a fixed periodic interest rate later
and include it in the current profit or loss. Variable lease payments not included in the measurement of lease liabilities shall be
included in the current profits and losses when they are actually incurred.
1) Short-term leases
The short-term lease refers to the lease that does not contain the purchase option and has a lease period of no more than 12 months
from the lease commencement date.The Company records the lease payments under short-term leases into the cost of the related assets or to current income or loss on
a straight-line basis over the respective periods of the lease term.For short-term leases the Company by category of leased asset selects to apply the simplified approach described above to items
within asset types that qualify as short-term leases.
2) Low-value asset leases
1762025 Annual Report of Zhejiang NHU Co. Ltd.
The Company records the lease payments under low-value asset leases into the cost of the related assets or to current income or
loss on a straight-line basis over the respective periods of the lease term.For leases of low-value assets the Company selects based on the specific circumstances of each lease to apply the simplified
approach described above.
3) Change of lease
The Company accounts for a lease change as a separate lease if the change occurs and both of the following conditions are met:
* the lease change increases the scope of the lease by adding the right to use one or more underlying assets; and * the
consideration for the lease increases by an amount and the scope of the lease increased by an extent that is commensurate with the
stand-alone price for the increase in consideration and scope as adjusted for the particular circumstances of the contract.If the lease change is not subject to accounting treatment as a separate lease on the effective date of the lease change the
Company will re-apportion the consideration of the changed contract re-determine the lease term and remeasure the lease
liabilities at the present value worked out according to the changed lease payment and the revised discount rate.If the lease change results in narrower scope of lease or shorter lease term the Company will reduce the carrying amount of the
right-of-use assets accordingly and will include relevant gain or loss from partial or full termination of the lease in the current
profit or loss.If other lease changes result in re-measurement of the lease liabilities the Company will adjust the carrying amount of the
right-of-use assets accordingly.
(2) Accounting treatment method for leasing by the lessor
When the Company acts as a lessor leases that substantially transfer all the risks and rewards incidental to ownership of the asset
are recognized as finance leases while leases other than finance leases are recognized as operating leases.
1) Operating lease
For operating leases rental payments are recognized by the Company on a straight-line basis in profit or loss for each period
during the lease term. The initial direct expenses related to an operating lease incurred shall be capitalized apportioned during the
lease term on the same recognition basis as rental income and included into the current profit and loss by installments. The
variable lease amount received under an operating lease which is not included in the lease receipt is included in the profit or loss
of the current period at the time of actual occurrence.
2) Change of lease
In the case of any change to the operating lease the Company will conduct accounting treatment with respect to the changed
operating lease as a new lease as of the effective date of the change and the lease payments received in advance or receivable with
respect to the lease before the change will be taken as the lease receipts for the new lease.
1772025 Annual Report of Zhejiang NHU Co. Ltd.
The Company accounts for a finance lease change as a separate lease if the change occurs and both of the following conditions are
met * the change increases the scope of the lease by adding the right to use one or more underlying assets; and * the
consideration for the lease increases by an amount and the scope of the lease increased by an extent that is commensurate with the
stand-alone price for the increase in consideration and scope as adjusted for the particular circumstances of the contract.If changes to a finance lease are not subject to accounting treatment as a separate lease the Company will treat the changed lease
in the following circumstances: * If assuming that the change takes effective at the lease commencement date and the lease is
classified into operating leases the Company will from the effective date of the lease change consider the change as a new lease
and the net lease investment prior to the effective date of the lease commencement as the carrying value of the leased asset; *
Assuming that the change takes effective at the lease commencement date and the lease is classified into financing leases the
Company will apply the provisions of Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
Financial Instruments concerning the modification or re-negotiation of contract.
30. Right-of-use assets
(1) Conditions for recognition of right-of-use assets
Right-of-use asset refers to the Company's right as lessee to use the leased asset during the lease term.On the lease commencement date the right-of-use assets are initially measured at cost. Such cost includes: the initial measurement
amount of the lease liability; lease payments made at or before the commencement date less the portion relating to any lease
incentives received; initial direct costs incurred by the Company as lessee; and an estimate of costs expected to be incurred by the
Company as lessee for dismantling and removing the leased asset restoring the site on which it is located or restoring the leased
asset to the condition required by the terms of the lease. The Company as a lessee recognizes and measures costs such as
dismantling restoration and similar items in accordance with Accounting Standards for Business Enterprises No. 13 -
Contingencies. Subsequent adjustments are made for any remeasurement of lease liabilities.
(2) Depreciation method of right-of-use assets
The Company shall withdraw the depreciation according to the straight-line method. If the Company as a lessee can reasonably
determine that it will obtain ownership of the leased asset when the lease term expires the right-of-use asset is depreciated over
the remaining useful life of the leased asset. If the Company cannot reasonably determine that it will obtain the ownership of
leased assets when the lease term expires the right-of-use asset is depreciated over the shorter of the lease term and the remaining
service life of the leased assets.
(3) The impairment test method for right-of-use assets and the impairment provision accrual method are set out in Note 20 of
Section V of this financial report.
1782025 Annual Report of Zhejiang NHU Co. Ltd.
31. Work safety funds
The Company makes provisions for work safety funds in accordance with the Administrative Measures for the Collection and
Utilization of Enterprise Work Safety Funds (C.Z. [2022] No. 136) jointly issued by the Ministry of Finance and the Ministry of
Emergency Management.Work safety funds when appropriated are included in the cost of the related products or recognized in profit or loss for the current
period and are simultaneously recorded in the “special reserve” account.When work safety funds are appropriated and utilized for expense-type expenditures they directly reduce the special reserve.Expenditures that result in the formation of fixed assets are first accumulated in the "construction in progress" account; upon
completion and attainment of the intended usable state they are recognized as fixed assets. Concurrently the special reserve is
reduced by the cost of the fixed assets formed and the same amount of accumulated depreciation will be recognized. These fixed
assets will not be depreciated in subsequent periods.
32. Accounting treatment related to the repurchase of the Company's shares
The shares repurchased by the Company are held as treasury stock prior to cancellation or transfer and all expenses incurred for
the repurchase of shares shall be recorded as the cost of treasury stock. The consideration paid and transaction costs in a share
repurchase reduce equity; gains or losses are not recognized on the repurchase transfer or cancellation of the Company's shares.When treasury shares are transferred the difference between the actual proceeds received and the carrying amount of the treasury
shares shall be recorded in capital reserve; if the capital reserve is insufficient to absorb the difference surplus reserve and retained
earnings shall be reduced to cover the shortfall. When treasury shares are cancelled share capital is reduced by the par value per
share and the number of shares canceled and the difference between the carrying amount of the cancelled treasury shares and their
par value will write off the capital reserve; if the capital reserve is insufficient to absorb the difference surplus reserve and
retained earnings shall be reduced to cover the shortfall.
33. Significant accounting judgments and estimates
The Company continuously evaluates the significant accounting estimates and key assumptions it uses based on historical
experience and other factors including reasonable expectations about future events. Below are the major accounting estimates and
key assumptions that may pose a significant risk of material adjustments to the carrying values of assets and liabilities in the
upcoming financial year:
1) Classification of financial assets
1792025 Annual Report of Zhejiang NHU Co. Ltd.
The Company’s significant judgments in determining the classification of financial assets include analysis of the business model
and the characteristics of the contractual cash flows.The Company establishes its business model for managing financial assets at the portfolio level by considering various factors.These include how the performance of financial assets is assessed and communicated to key management personnel the risks
influencing asset performance and their management as well as the compensation structure for the relevant business managers.When evaluating whether the contractual cash flows of a financial asset align with a basic lending arrangement the Company
primarily considers the following key judgments: whether the principal amount may vary in timing or amount throughout the
instrument’s term due to prepayment or other factors; and whether the interest reflects only the time value of money credit risk
other fundamental lending risks and appropriate compensation for costs and profit. For instance it is important to determine
whether the early repayment amount includes only the outstanding principal the interest accrued on that principal and any
reasonable compensation for the early termination of the contract.
2) Measurement of expected credit loss of accounts receivable
The Company calculates expected credit losses on accounts receivable using the accounts receivable exposure to default risk and
the expected credit loss rate and determines the expected credit loss rate based on the probability of default and the loss in the
event of default. When determining the expected credit loss rate the Company relies on its internal historical credit loss
experience along with other data and adjusts the historical data to reflect current conditions and forward-looking information.When considering forward-looking information the Company takes into account various indicators such as the risk of an
economic downturn shifts in the external market environment technological developments and customer conditions among
others. The Company regularly monitors and reviews the assumptions related to the calculation of expected credit losses.
3) Goodwill-impairment
The Company conducts an annual assessment to determine whether there has been any impairment of goodwill. This requires
estimating the value in use of the asset group to which goodwill has been assigned. When estimating value in use the Company
needs to project the future cash flows generated by the asset group and apply a suitable discount rate to determine the present value
of those cash flows.
4) Deferred income tax assets
If and to the extent that it is likely that there will be enough taxable profits to cover the losses the Company recognizes deferred
tax assets for all unused tax losses. In this case the management has to use significant judgment to estimate the time and amount
of future taxable profits and in combination with its tax plan to determine the amount of deferred tax assets that should be
recognized.
1802025 Annual Report of Zhejiang NHU Co. Ltd.
34. Other significant accounting policies and accounting estimates
None
35. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□Applicable□ Not applicable
(2) Changes in significant accounting estimates
□Applicable□ Not applicable
(3) Adjustments to related items of the financial statements at the beginning of the year of initial application of the new
accounting standards (effective from 2025)
□Applicable□ Not applicable
VI. Taxation
1. Main tax categories and rates
Tax categories Taxation basis Tax rate
The applicable tax rates are 13% 9%
8% 6% 5% and 19%. Exported goods
Taxable amount of added value (taxable benefit from the "exemption offset and
amount is the balance calculated as the refund" tax policy with rebate rates
following formula: taxable sales amount ranging from 0% to 13%. Additionally
VAT
multiplies the applicable tax rate then our subsidiary Zhejiang NHU Import &
deducts the input tax allowable for Export Company Ltd. exports goods
deduction of the current period) under the "tax collection first refund
later" policy also with rebate rates
between 0% and 13%
Urban maintenance and construction tax Actual paid turnover tax amount 5% 7%
8.25%15%16.5%17%20%21%
Corporate income tax Taxable income
22%25%25.5%34%34.6%
For property tax assessed on a value
basis payment is calculated as 1.2% of
the residual value after a one-time 30%
House property tax deduction from the original property 1.2% 12%
value; for property tax assessed on a
rental basis payment is calculated as
12% of rental income.
Education surcharge Actual paid turnover tax amount 3%
Local education surcharges Actual paid turnover tax amount 2%
Solidarity surcharge [Note] Amount of income tax payable 5.5%
Trade tax [Note] Taxable income 13.3%
[Note] This information is applicable to the subsidiaries NHU EUROPE GMBH NHU Performance Materials GmbH
Bardoterminal GmbH and NHU Life Science GmbH
1812025 Annual Report of Zhejiang NHU Co. Ltd.
If there are taxable entities with different tax rates of enterprise income tax disclose the specific information
Name of taxable entity Rate of income tax
The Company 15%
Shangyu NHU Bio-Chem Co. Ltd. 15%
Shandong NHU Pharmaceutical Co. Ltd. 15%
Shandong NHUAmino-acids Co. Ltd. 15%
Zhejiang NHU Specialty Materials Co. Ltd. 15%
Heilongjiang NHU Biotechnology Co. Ltd. 15%
Zhejiang NHU Pharmaceutical Co. Ltd. 15%
Shandong NHU Fine Chemical Science and Technology Co.
15%
Ltd.Taxation is based on the territorial source principle. For profits
sourced from Hong Kong the first HKD 2000000 are taxed at
NHU (Hong Kong) Trading Co. Ltd. a profits tax rate of 8.25%; subsequent profits sourced from
Hong Kong are taxed at 16.5%. Profits earned outside of Hong
Kong are not subject to profits tax within the region.NHU EUROPE GMBH 15%
NHU Performance Materials GMBH 15%
Bardoterminal GmbH 15%
NHU LIFE SCIENCE GmbH 15%
NHU Singapore Pte. Ltd. 17%
Shandong Xinshuang'an Biotechnology Co. Ltd. 20%
Cong Ty Tnhh NHU Vietnam 20%
NHU North America LLC 21%
NHU/Chr. Olesen Latin America A/S 22%
NHU/CHR. OLESEN MEXICO SAPI DE CV 25.5%
NHU/CHR. OLESEN BRASIL LTDA 34%
NHU Japan 株式会社 34.6%
Other taxable entities not previously specified 25%
2. Tax incentives
(1) Corporate income tax incentives
* High-tech enterprise tax incentives
The Company has been officially recognized as a high-tech enterprise as confirmed by the High-tech Enterprise Certificate
(GR202333009429) issued by the Department of Science and Technology of Zhejiang Province the Zhejiang Provincial
Department of Finance and the Zhejiang Provincial Tax Service State Taxation Administration. As a result the Company will
benefit from high-tech enterprise tax incentives from 2023 through 2025 with a corporate income tax rate of 15% applicable in
2025.
The subsidiary Shangyu NHU Bio-Chem Co. Ltd. has been officially recognized as a high-tech enterprise as confirmed by the
High-tech Enterprise Certificate (GR202533006963) issued by the Department of Science and Technology of Zhejiang Province
the Zhejiang Provincial Department of Finance and the Zhejiang Provincial Tax Service State Taxation Administration. As a
1822025 Annual Report of Zhejiang NHU Co. Ltd.
result it will benefit from high-tech enterprise tax incentives from 2025 through 2027 with a corporate income tax rate of 15%
applicable in 2025.The subsidiary Shandong NHU Pharmaceutical Co. Ltd. has been officially recognized as a high-tech enterprise as confirmed
by the High-tech Enterprise Certificate (GR202337003609) issued by the Department of Science & Technology of Shandong
Province the Shandong Provincial Department of Finance and the Shandong Provincial Tax Service State Taxation
Administration. As a result it will benefit from high-tech enterprise tax incentives from 2023 through 2025 with a corporate
income tax rate of 15% applicable in 2025.The subsidiary Shandong NHU Amino-acids Co. Ltd. has been officially recognized as a high-tech enterprise as confirmed by
the High-tech Enterprise Certificate (GR202437003425) issued by the Department of Science & Technology of Shandong
Province the Shandong Provincial Department of Finance and the Shandong Provincial Tax Service State Taxation
Administration. As a result it will benefit from high-tech enterprise tax incentives from 2024 through 2026 with a corporate
income tax rate of 15% applicable in 2025.The subsidiary Zhejiang NHU Specialty Materials Co. Ltd. has been officially recognized as a high-tech enterprise as confirmed
by the High-tech Enterprise Certificate (GR202433008150) issued by the Economy and Information Technology Department of
Zhejiang the Zhejiang Provincial Department of Finance and the Zhejiang Provincial Tax Service State Taxation Administration.As a result it will benefit from high-tech enterprise tax incentives from 2024 through 2026 with a corporate income tax rate of
15% applicable in 2025.
The subsidiary Heilongjiang NHU Biotechnology Co. Ltd. has been officially recognized as a high-tech enterprise as confirmed
by the High-tech Enterprise Certificate (GR202423000652) issued by the Department of Science and Technology of Heilongjiang
Province the Finance Bureau of Heilongjiang Province and the Heilongjiang Provincial Tax Service State Taxation
Administration. As a result it will benefit from high-tech enterprise tax incentives from 2024 through 2026 with a corporate
income tax rate of 15% applicable in 2025.The subsidiary Zhejiang NHU Pharmaceutical Co. Ltd. has been officially recognized as a high-tech enterprise as confirmed by
the High-tech Enterprise Certificate (GR202533005415) issued by the Department of Science and Technology of Zhejiang
Province the Zhejiang Provincial Department of Finance and the Zhejiang Provincial Tax Service State Taxation Administration.As a result it will benefit from high-tech enterprise tax incentives from 2025 through 2027 with a corporate income tax rate of
15% applicable in 2025.
The subsidiary Shandong NHU Fine Chemical Science and Technology Co. Ltd. has been officially recognized as a high-tech
enterprise as confirmed by the High-tech Enterprise Certificate (GR202537002216) issued by the Department of Science &
Technology of Shandong Province the Shandong Provincial Department of Finance and the Shandong Provincial Tax Service
1832025 Annual Report of Zhejiang NHU Co. Ltd.
State Taxation Administration. As a result it will benefit from high-tech enterprise tax incentives from 2025 through 2027 with a
corporate income tax rate of 15% applicable in 2025.* Tax incentives for micro and small enterprises
Pursuant to the Announcement of the Ministry of Finance and the State Taxation Administration on the Relevant Tax and Fee
Policies for Further Supporting the Development of Micro and Small Enterprises and Individual Industrial and Commercial
Households (Ministry of Finance and State Taxation Administration Announcement 2023 No. 12): the policy under which small
low-profit enterprises calculate taxable income at 25% and pay corporate income tax at a rate of 20% will continue to be
implemented until December 31 2027. The subsidiary Shandong Xinshuang'an Biotechnology Co. Ltd. calculates and pays
corporate income tax at the applicable preferential tax rate.* Tax incentives for overseas enterprises
Pursuant to Chapter 112 of the Laws of Hong Kong the Tax Ordinance Section 14 Hong Kong adopts the territorial source
principle for taxation: only profits arising in Hong Kong are subject to tax in Hong Kong while profits arising elsewhere are not
subject to Hong Kong profits tax. The subsidiary NHU (Hong Kong) Trading Co. Ltd. calculates and pays corporate income tax
at the applicable preferential tax rate.
(2) VAT preference
Pursuant to the Announcement on VAT Additional Deduction Policy for Advanced Manufacturing Enterprises (No. 43
Announcement of Ministry of Finance and State Administration of Taxation in 2023) from January 1 2023 to December 31
2027 advanced manufacturing enterprises are permitted to deduct an additional 5% of the current deductible input VAT from their
VAT payable. The Company and its subsidiaries Shangyu NHU Bio-Chem Co. Ltd. Zhejiang NHU Pharmaceutical Co. Ltd.Zhejiang NHU Specialty Materials Co. Ltd. Shandong NHU Amino-acids Co. Ltd. Shandong NHU Pharmaceutical Co. Ltd.Shandong NHU Fine Chemical Science and Technology Co. Ltd. and Heilongjiang NHU Biotechnology Co. Ltd. enjoy a
preferential policy of additional deduction/offset of input VAT.VII. Notes to consolidated financial statements
1. Cash and cash equivalents
Unit: RMBYuan
Items Closing balance Opening balance
Cash on hand 19519.80 12825.19
Bank deposits 7919727704.51 7880453812.72
Other monetary funds 46522906.86 56038167.74
1842025 Annual Report of Zhejiang NHU Co. Ltd.
Items Closing balance Opening balance
Total 7966270131.17 7936504805.65
Including: Total amounts deposited
231285799.32464483762.87
abroad
Other notes: Monetary funds that are subject to usage restrictions and are not classified as cash or cash equivalents are detailed in
the financial report specifically in Note 20 of Section VII and Note 58(3)(4) of Section VII.
2. Financial assets held for trading
Unit: RMBYuan
Items Closing balance Opening balance
Financial assets measured at fair value
2168275092.55745816.34
through profit or loss
Including:
Derivative financial assets 13213250.21 745816.34
Principal-protected floating-yield wealth
2155061842.34
management product
Total 2168275092.55 745816.34
3. Notes receivable
(1) Notes receivable listed by classification
Unit: RMBYuan
Items Closing balance Opening balance
Bank acceptance notes 292562093.90
Total 292562093.90
(2) Classification and disclosure by bad debt provision method
Unit: RMBYuan
Closing balance Opening balance
Bad-debt
Book balance Bad-debt provision Book balance
Categories Carrying provision Carrying
% to Rate of amount Rate of amount
Amount Amount Amount % to total Amount
total provision provision
Including:
Notes
receivable
provided for
on an 292562093.90 100.00% 292562093.90
individual
(item-by-item)
basis
1852025 Annual Report of Zhejiang NHU Co. Ltd.
Closing balance Opening balance
Bad-debt
Book balance Bad-debt provision Book balance
Categories Carrying provision Carrying
% to Rate of amount Rate of amount
Amount Amount Amount % to total Amount
total provision provision
Including:
Bank
acceptance 292562093.90 100.00% 292562093.90
bills
Total 292562093.90 100.00% 292562093.90
If the provision for bad debts on notes receivable is based on the general model of expected credit losses:
□ Applicable□ Not applicable
4. Accounts receivable
(1) Disclosure by aging
Unit: RMBYuan
Book balance at the beginning of the
Aging Closing book balance
period
Within 1 year (including 1 year) 3502674400.14 3820258543.87
1 to 2 years 4695426.61 30298898.20
2 to 3 years 688280.00 956846.12
Over 3 years 2120460.98 2106280.80
3 to 4 years 14180.18
4 to 5 years 57000.00
Over 5 years 2106280.80 2049280.80
Total 3510178567.73 3853620568.99
(2) Classification and disclosure by bad debt provision method
Unit: RMBYuan
Closing balance Opening balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categories Carrying Carrying
% to Rate of % to Rate of
Amount Amount amount Amount Amount amount
total provision total provision
Including:
Accounts
receivable
with
provision
3510178567.73100.00%178743890.465.09%3331434677.273853620568.99100.00%199944464.625.19%3653676104.37
for bad
debts
reserve
based on
1862025 Annual Report of Zhejiang NHU Co. Ltd.
Closing balance Opening balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categories Carrying Carrying
% to Rate of % to Rate of
Amount Amount amount Amount Amount amount
total provision total provision
portfolio
Total 3510178567.73 100.00% 178743890.46 5.09% 3331434677.27 3853620568.99 100.00% 199944464.62 5.19% 3653676104.37
Provision for bad debts by portfolio: 178743890.46
Unit: RMBYuan
Closing balance
Name
Book balance Bad-debt provision Rate of provision
Within 1 year 3502674400.14 175133720.16 5.00%
1-2 years 4695426.61 939085.32 20.00%
2-3 years 688280.00 550624.00 80.00%
Over 3 years 2120460.98 2120460.98 100.00%
Total 3510178567.73 178743890.46
Explanation of the basis for determining the grouping: Provision for bad debts is made based on aging groups
If the provision for bad debts on accounts receivable is based on the general model of expected credit losses:
□ Applicable□ Not applicable
(3) Provision recovery or reversal of bad debt reserve in current period
Provision for bad debts of this period:
Unit: RMBYuan
Changes in amount of the current period
Opening
Categories Closing balance
balance Recovery orProvision Write off Others
reversal
Provision for
bad debts by
199944464.6219372089.951828484.21178743890.46
portfolio
Total 199944464.62 19372089.95 1828484.21 178743890.46
Among these significant amounts of recoveries or reversals of bad debt provisions in the current period: None
(4) Accounts receivable actually written off in current period
Unit: RMBYuan
Items Written off amount
Accounts receivable actually written off 1828484.21
1872025 Annual Report of Zhejiang NHU Co. Ltd.
(5) The status of accounts receivable and contract assets in the top five of the ending balance collected
according to debtors
Unit: RMBYuan
Proportion of total balance of Ending balance of allowance
Ending balance of accounts accounts receivable and for bad debts on accounts
Company name
receivable contract assets at the end of receivable and impairment
the period provision for contract assets
Customer I 262924296.19 7.49% 13146214.81
Customer II 140663508.56 4.01% 7033175.43
Customer III 95606321.85 2.72% 4780316.09
Customer IV 79238962.88 2.26% 3961948.14
Customer V 71128409.92 2.03% 3556420.50
Total 649561499.40 18.51% 32478074.97
5. Receivables financing
(1) Financing of accounts receivable by classification
Unit: RMBYuan
Items Closing balance Opening balance
Bank acceptance bills 813062385.73 523913135.22
Total 813062385.73 523913135.22
(2) Classification and disclosure by bad debt provision method
Unit: RMBYuan
Closing balance Opening balance
Bad-debt Bad-debt
Book balance Book balance
provision provision
Categories A Carrying A Carrying
Rate of Rate of
% to m amount % to m amount
Amount provisi Amount provisi
total ou total ou
on on
nt nt
Including:
Provision for
bad debts by 813062385.73 100.00% 813062385.73 523913135.22 100.00% 523913135.22
portfolio
Including:
Bank
acceptance 813062385.73 100.00% 813062385.73 523913135.22 100.00% 523913135.22
bills
Total 813062385.73 100.00% 813062385.73 523913135.22 100.00% 523913135.22
1882025 Annual Report of Zhejiang NHU Co. Ltd.
Unit: RMBYuan
Opening balance Closing balance
Name Bad-debt Bad-debt Rate of Reason for
Book balance Book balance
provision provision provision accrual
Portfolio of
bank acceptance 523913135.22 813062385.73
bills
Total 523913135.22 813062385.73
(3) Receivables financing pledged at the end of the period
Unit: RMBYuan
Items Amount pledged at the end of the period
Bank acceptance notes 135353157.67
Total 135353157.67
(4) Receivables financing endorsed or discounted by the Company at the end of the period and not yet
due on the balance sheet date
Unit: RMBYuan
Amount derecognized at the end of the Amount not derecognized at the end of
Items
period the period
Bank acceptance notes 1026408996.70
Total 1026408996.70
6. Other receivables
Unit: RMBYuan
Items Closing balance Opening balance
Other receivables 274052669.41 225516143.49
Total 274052669.41 225516143.49
(1) Other receivables
1) Classification of other receivables according to the nature of payment
Unit: RMBYuan
Book balance at the beginning of the
Nature of payment Closing book balance
period
Export tax rebates and other refundable
224201293.87177985637.39
taxes and fees
Deposits and guarantee deposits 35191248.50 28016052.55
Employee petty cash 21857847.92 19683594.24
Special capital injection funds 3698633.08
Others 6774582.72 4326094.50
Total 288024973.01 233710011.76
1892025 Annual Report of Zhejiang NHU Co. Ltd.
2) Disclosure by aging
Unit: RMBYuan
Book balance at the beginning of the
Aging Closing book balance
period
Within 1 year (including 1 year) 252007141.35 205033057.78
1 to 2 years 9833193.36 4490776.06
2 to 3 years 3151650.55 3096856.11
Over 3 years 23032987.75 21089321.81
3 to 4 years 1971907.62 5158410.73
4 to 5 years 7190484.46 910984.75
Over 5 years 13870595.67 15019926.33
Total 288024973.01 233710011.76
3) Classification and disclosure by bad debt provision method
□Applicable □ Not applicable
Unit:
RMB Yuan
Closing balance Opening balance
Categories Book balance Bad-debt provision Book balance Bad-debt provisionCarrying Carrying
% to Rate of % to Rate of
Amount Amount amount Amount Amount amount
total provision total provision
Including:
Provision
for bad
288024973.01100.00%13972303.604.85%274052669.41233710011.76100.00%8193868.273.51%225516143.49
debts by
portfolio
Total 288024973.01 100.00% 13972303.60 4.85% 274052669.41 233710011.76 100.00% 8193868.27 3.51% 225516143.49
Provision for bad debts by portfolio: 13972303.60
Unit: RMBYuan
Closing balance
Name
Book balance Bad-debt provision Rate of provision
Export tax rebates and other
224201293.872242012.941.00%
refundable taxes and fees
Land deposit receivables
17354493.50173544.941.00%
portfolio
Deposits receivable from
customs and tax authorities 0.00
Portfolio
Portfolio of income tax
0.00
refunds receivable
Aging portfolio 46469185.64 11556745.72 24.87%
Including: Within one year 27805847.48 1390292.35 5.00%
1902025 Annual Report of Zhejiang NHU Co. Ltd.
Closing balance
Name
Book balance Bad-debt provision Rate of provision
1-2 years 9833193.36 1966638.68 20.00%
2-3 years 3151650.55 2521320.44 80.00%
Over 3 years 5678494.25 5678494.25 100.00%
Total 288024973.01 13972303.60
Provision for bad debts under the general model of expected credit losses:
Unit: RMBYuan
First stage Second stage Third stage
Expected credit loss for Expected credit loss for
Bad-debt provision Expected credit the entire duration (no the entire duration Total
losses over the next
credit impairment (credit impairment has
12 months
occurred) occurred)
Balance as at January 1
1167439.35858065.816168363.118193868.27
2025
The balance as of January
1 2025 is in the current
period
-- Transferred to the
-491659.67491659.67
second stage
-- Transferred to the third
-630330.11630330.11
stage
Accrual in the current
3130070.551247243.312097121.476474435.33
period
Amount charged off in
696000.00696000.00
the current period
Balance as at December
3805850.231966638.688199814.6913972303.60
312025
Criteria for dividing each stage and the bad-debt reserves calculation and withdrawal proportion
Classification criteria for stages are as follows: Accounts with an aging period of up to one year and those undergoing individual
impairment assessment are categorized as Stage I; accounts aged between one and two years fall under Stage II; and accounts
exceeding two years in age are designated as Stage III.Significant changes in the carrying amounts of items with material changes in the allowance for losses during the period
□ Applicable□ Not applicable
4) Provision recovery or reversal of bad debt reserve in current period
Provision for bad debts of this period:
Unit: RMBYuan
Changes in amount of the current period
Opening
Categories
balance Recovery or Charge-off or
Closing balance
Provision Others
reversal write-off
Provision for
bad debts by 8193868.27 5778435.33 13972303.60
portfolio
1912025 Annual Report of Zhejiang NHU Co. Ltd.
Changes in amount of the current period
Opening
Categories Recovery or Charge-off or Closing balancebalance Provision Others
reversal write-off
Total 8193868.27 5778435.33 13972303.60
Among them significant amount of bad-debt provision written back or recovered in the current period: None
5) Top five other receivables by period-end balance aggregated by debtor
Unit: RMBYuan
Ratio in the total
Nature of the Ending balance of
Company name Closing balance Aging ending balance of
amounts bad debt provision
other receivables
State
Export tax rebates
Administration of
and other
Taxation (Export 171169565.68 Within 1 year 59.43% 1711695.66
refundable taxes
tax rebates
and fees
receivable)
Export tax rebates
Servicio de
and other
Administración 27725313.70 Within 1 year 9.63% 277253.14
refundable taxes
Tributaria
and fees
Shandong Weifang
Binhai Economic
Development Zone Deposits and
17354493.50 Over 3 years 6.03% 173544.94
Fiscal Treasury guarantee deposits
Centralized
Payment Center
Export tax rebates
Secretaria da and other
14981856.73 Within 1 year 5.20% 149818.57
Fazenda do Estado refundable taxes
and fees
Export tax rebates
Hauptzollamt and other
9356609.81 Within 1 year 3.25% 93566.10
Hamburg Zollamt refundable taxes
and fees
Total 240587839.42 83.54% 2405878.41
7. Advance payments
(1) Presentation of advance payments by age of account
Unit: RMBYuan
Closing balance Opening balance
Aging
Amount % to total Amount % to total
Within 1 year 177889226.14 99.68% 162128120.14 99.33%
1 to 2 years 64652.72 0.04% 627814.76 0.38%
2 to 3 years 200115.95 0.11% 369577.18 0.23%
Over 3 years 296151.06 0.17% 91000.00 0.06%
Total 178450145.87 163216512.08
Explanation of reasons why prepayments with more than 1 year's age and significant amount are not settled in time: None
1922025 Annual Report of Zhejiang NHU Co. Ltd.
（2） Top five ending balances of prepayments grouped by payee
Unit: RMBYuan
Ratio of total balance of
Company name Book balance
prepayment
Supplier A 18471296.53 10.35%
Supplier B 16922013.33 9.48%
Supplier C 12469496.18 6.99%
Supplier D 8690000.00 4.87%
Supplier E 8666619.46 4.86%
Subtotal 65219425.50 36.55%
8. Inventories
Whether the Company needs to comply with disclosure requirements of real estate industry
No
(1) Inventory classification
Unit: RMBYuan
Closing balance Opening balance
Provision for Provision for
inventory inventory
write-down or write-down or
Items provision for Carrying provision for Carrying
Book balance Book balance
impairment of amount impairment of amount
contract contract
fulfillment fulfillment
costs costs
Raw material 335723544.36 930697.19 334792847.17 442728793.37 6460736.28 436268057.09
Work in
1074700853.5337815736.831036885116.701121647464.746519042.731115128422.01
process
Merchandise
3142414991.50199598446.212942816545.292419984677.77140206380.432279778297.34
inventory
Goods
202341534.782337354.64200004180.14100921025.52100921025.52
dispatched
Work in
process - 11563462.74 1068326.66 10495136.08 4971296.82 4971296.82
outsourced
Packaging 19714407.90 19714407.90 18485345.27 18485345.27
Low value
104041234.15104041234.1579583917.6979583917.69
consumables
Cost of
54960480.2254960480.22
development
Total 4890500028.96 241750561.53 4648749467.43 4243283001.40 153186159.44 4090096841.96
1932025 Annual Report of Zhejiang NHU Co. Ltd.
(2) Inventories - development products
Unit: RMBYuan
Estimated total investment
Project name Opening balance Closing balance
(RMB ’0000)
Weifang NHU Town Phase II 39853.14 54960480.22
Subtotal 54960480.22
(3) Provision for inventory write-downs and impairment provision for contract performance costs
Unit: RMBYuan
Increased amount in the current Decreased amount in the current
Opening period period
Items Closing balance
balance Reversed or
Provision Others Others
charged-off
Raw material 6460736.28 5530039.09 930697.19
Work in
6519042.7337815736.836519042.7337815736.83
process
Merchandise
140206380.43187911426.15128519360.37199598446.21
inventory
Goods
2337354.642337354.64
dispatched
Work in
process - 1068326.66 1068326.66
outsourced
Total 153186159.44 229132844.28 140568442.19 241750561.53
The specific criteria used to determine the net realizable value along with the explanations for any reversals or write-offs of
inventory impairment provisions during the current period
The explanations for any reversals or
Items The specific criteria used to determine the net realizable value write-offs of inventory impairment provisions
during the current period
Raw material The net realizable value is calculated by taking the estimated
selling price of the finished goods and subtracting theReversal of inventory write-down provision:
Work in process estimated costs to complete selling expenses and applicable The net realizable value of inventory for
taxes which inventory write-down provisions were
Merchandise The net realizable value is determined by subtracting themade in previous periods has increased;
inventory estimated selling expenses and related taxes from the estimated write-off of inventory write-down provision:
Goods dispatched selling price of the finished products. During the current period inventory for which
The net realizable value is calculated by taking the estimated write-down provisions were made at the
Work in process - selling price of the finished goods and subtracting the beginning of the period has been
outsourced estimated costs to complete selling expenses and applicable consumed/sold/scrapped
taxes
Accrual standard of provision for inventory obsolescence by portfolio: None
1942025 Annual Report of Zhejiang NHU Co. Ltd.
9. Other current assets
Unit: RMBYuan
Items Closing balance Opening balance
Prepaid VAT or input VAT pending
34481204.4428566490.04
deduction
Deferred service fees 14539548.75 2184667.56
Deferred insurance expense 4306345.86 4885881.13
Advance payment of enterprise income tax 534863.03
Prepaid rent fees 1175757.55 332593.36
Total 55037719.63 35969632.09
10. Other equity instrument investments
Unit: RMBYuan
Reasons for
Losses
designation as
Losses Gains included included Dividend
Gains included financial
included in in other accumulated income
in other assets
Closing Opening other comprehensive in other recognized
Project name comprehensive measured at
balance balance comprehensive income at the comprehensive in the
income in the fair value
income in the end of the income at the current
current period through other
current period current period end of the period
comprehensive
current period
income
Zhejiang
Second
7790147.557790147.55
Pharma Co.Ltd.Shanghai
NewMargin
Yongjin
Equity 52336000.00 11708000.00 40628000.00 40628000.00
Enterprise
(Limited
Partnership)
Total 60126147.55 19498147.55 40628000.00 40628000.00
Derecognition in the current period: None
Other notes: The above investments are investments that the Company plans to hold long-term for strategic purposes and the
Company has designated them as financial assets measured at fair value with changes recognized in other comprehensive income.
1952025 Annual Report of Zhejiang NHU Co. Ltd.
11. Long-term equity investments
Unit: RMBYuan
Increase or decrease in the current period
Opening Closing
Opening balance balance of Other ProvisionRecognized investment Other Declared payment of Closing balance balance ofInvested entity
(Carrying amount) impairment Additional Investment comprehensive forgain and loss under changes in cash dividends or Others (Carrying amount) impairment
provision investment decrease income impairmentequity method equity profits provision
adjustments reserve
I. Joint ventures
Ningbo Zhenhai
Refining and
Chemical NHU 358644929.90 21082727.75 38397700.07 418125357.72
Biotechnology
Co. Ltd.Subtotal 358644929.90 21082727.75 38397700.07 418125357.72
II. Associates
Envalior NHU
Engineering
Materials 36570912.79 11732612.26 -2894464.62 45409060.43
(Zhejiang) Co.Ltd.Zhejiang Chunhui
Environmental
302422406.4062291235.1425920000.0032921.05338826562.59
Protection Energy
Co. Ltd.Zhejiang Saiya
Chemical
129803674.227644670.6712250000.003226287.09128424631.98
Materials Co.Ltd.CysBio ApS 28785541.95 -1367337.28 -617267.47 26800937.20
Shandong Bin'an
Vocational
4022621.53-856559.313166062.22
Training School
Co. Ltd.Anhui Yingna
Weixun
5012061.57-414124.284597937.29
Technology Co.Ltd.Subtotal 506617218.46 79030497.20 38170000.00 -252523.95 547225191.71
Total 865262148.36 100113224.95 38170000.00 38145176.12 965350549.43
The recoverable amount is determined based on the net of fair value less disposal costs.□ Applicable□ Not applicable
The recoverable amount is determined based on the present value of estimated future cash flows.□ Applicable□ Not applicable
1962025 Annual Report of Zhejiang NHU Co. Ltd.
12. Fixed assets
Unit: RMBYuan
Items Closing balance Opening balance
Fixed assets 20298898673.14 21915984823.43
Fixed assets disposal
Total 20298898673.14 21915984823.43
(1) Status of fixed assets
Unit: RMBYuan
Houses and General Dedicated
Items Means of transport Total
buildings equipment equipment
I. Original carrying
amount:
1. Opening balance 8454066940.85 264629823.65 23279364467.73 28462249.11 32026523481.34
2. Amount increased
77615851.0033492710.58533602477.176121869.13650832907.88
in the current period
(1) Purchase 51179741.83 25829416.47 130917243.91 6121869.13 214048271.34
(2) Transfer from
construction in 26436109.17 7663294.11 402685233.26 436784636.54
progress
(3) Increase from
business
combinations
3. Decreased amount
14382203.511988376.7799600318.543934735.76119905634.58
in the current period
(1) Disposal or
14382203.511988376.7799600318.543934735.76119905634.58
scrapping
4. Ending balance 8517300588.34 296134157.46 23713366626.36 30649382.48 32557450754.64
II. Accumulated
depreciation
1. Opening balance 1307579725.86 184226362.77 8542577649.57 14670898.44 10049054636.64
2. Amount increased
236637223.2426535304.691950601946.213302757.892217077232.03
in the current period
(1) Provision 236637223.24 26535304.69 1950601946.21 3302757.89 2217077232.03
3. Decreased amount
161125.111818919.5563597993.043067959.9768645997.67
in the current period
(1) Disposal or
161125.111818919.5563597993.043067959.9768645997.67
scrapping
4. Ending balance 1544055823.99 208942747.91 10429581602.74 14905696.36 12197485871.00
III. Impairment
Provision
1. Opening balance 20975435.81 7112.74 40501472.72 61484021.27
2. Amount increased
in the current period
1972025 Annual Report of Zhejiang NHU Co. Ltd.
Houses and General Dedicated
Items Means of transport Total
buildings equipment equipment
(1) Provision
3. Decreased amount
34.19417776.58417810.77
in the current period
(1) Disposal or
34.19417776.58417810.77
scrapping
4. Ending balance 20975435.81 7078.55 40083696.14 61066210.50
IV. Carrying amount
1. Carrying amount at
6952269328.5487184331.0013243701327.4815743686.1220298898673.14
the end of the period
2. Carrying amount at
the beginning of 7125511779.18 80396348.14 14696285345.44 13791350.67 21915984823.43
period
(2) Fixed assets temporarily idle
Unit: RMBYuan
Original carrying Accumulated Depreciation
Items Carrying amount Notes
amount depreciation reserves
Houses and
158636051.4853607020.2320975435.8184053595.44
buildings
General equipment 61533.61 48013.84 2420.51 11099.26
Dedicated
462985438.79367373435.446395073.8289216929.53
equipment
Total 621683023.88 421028469.51 27372930.14 173281624.23
(3) Fixed assets leased out through operating leases
Unit: RMBYuan
Items Closing carrying amount
Houses and buildings 42553480.09
Total 42553480.09
(4) Fixed assets for which title certificates have not been obtained
Unit: RMBYuan
Reasons for not completing the title
Items Carrying amount
certificate
The relevant procedures have not yet
Houses and buildings 706641580.57
been completed
Total 706641580.57
(5) Impairment testing of fixed assets
□Applicable □ Not applicable
The recoverable amount is determined based on the net of fair value less disposal costs.□ Applicable□ Not applicable
1982025 Annual Report of Zhejiang NHU Co. Ltd.
The recoverable amount is determined based on the present value of estimated future cash flows.□ Applicable□ Not applicable
13. Construction in progress
Unit: RMBYuan
Items Closing balance Opening balance
Construction in progress 745117350.86 571610643.68
Total 745117350.86 571610643.68
(1) Conditions of construction in progress
Unit: RMBYuan
Closing balance Opening balance
Items Depreciation Carrying Depreciation Carrying
Book balance Book balance
reserves amount reserves amount
New materials
industry chain 183041766.17 183041766.17 24534038.09 24534038.09
project
Methionine
integrated 80059496.68 80059496.68
upgrade project
Workshop 615
1500-ton
aldehyde-series
79928124.4279928124.4268706885.5568706885.55
production
switching
project
20000-ton-per-
year
glufosinate-am
monium 52444438.35 52444438.35 49623769.12 49623769.12
process and
legalization
project
Workshop 663
technological
28245872.5328245872.53
transformation
project
CH phase II
major
production 24294749.08 24294749.08
engineering
project
Integration
project for
fluoroalkanes 21521655.66 21521655.66
and plant
alcohols
Linalool series
products
17291367.9317291367.93
capacity
expansion
1992025 Annual Report of Zhejiang NHU Co. Ltd.
Closing balance Opening balance
Items Depreciation Carrying Depreciation Carrying
Book balance Book balance
reserves amount reserves amount
project
1500 tons/year
anise camphor 55770423.77 55770423.77
project
Citral new
process
capacity 37142112.68 37142112.68
expansion
project
Project with an
annual
production
capacity of
33944620.1633944620.16
1000 tons of
calcium
hydroxy
methionine
520 workshop
asset
24035797.8624035797.86
revitalization
project
2024 menthol
capacity
expansion
16854381.0816854381.08
technological
transformation
project
Other sporadic
264583913.746294033.70258289880.04260998615.37260998615.37
projects
Total 751411384.56 6294033.70 745117350.86 571610643.68 571610643.68
(2) Increase or decrease of significant construction in progress in current period
Unit: RMBYuan
Including:
Other The Interest
Amount of
Amount transferred decreased proportion Accumulated capitalization
Budget Increased amount in Project interest Capital
Project name Opening balance to fixed assets in amount in Closing balance of total amount of interest rate for the
(RMB ’0000) the current period progress capitalization in source
current period the current project input capitalization current
the current
period to the budget period
period
New materials
industry chain 403624.00 24534038.09 158507728.08 183041766.17 4.53% 5.00% 920660.51 920660.51 2.67% Others
project
Workshop 615
1500-ton
aldehyde-series 11687.27 68706885.55 11221238.87 79928124.42 68.39% 95.00% Others
production
switching project
2002025 Annual Report of Zhejiang NHU Co. Ltd.
Including:
Other The Interest
Amount of
Amount transferred decreased proportion Accumulated capitalization
Budget Increased amount in Project interest Capital
Project name Opening balance to fixed assets in amount in Closing balance of total amount of interest rate for the
(RMB ’0000) the current period progress capitalization in source
current period the current project input capitalization current
the current
period to the budget period
period
1500 tons/year anise
7966.00 55770423.77 9391977.90 65162401.67 81.80% 100.00% 260402.18 51535.30 0.23% Others
camphor project
Total 423277.27 149011347.41 179120944.85 65162401.67 262969890.59 1181062.69 972195.81
(3) Provision for impairment of construction in progress in the current period
Unit: RMBYuan
Increase in the Decrease in the Reasons for
Items Opening balance Closing balance
current period current period provision
Other sporadic
6294033.706294033.70
projects
Total 6294033.70 6294033.70 --
(4) Impairment testing of construction in progress
□Applicable □ Not applicable
The recoverable amount is determined based on the net of fair value less disposal costs.□ Applicable□ Not applicable
The recoverable amount is determined based on the present value of estimated future cash flows.□Applicable □ Not applicable
Unit: RMBYuan
Basis for
Key determining
Forecast parameters the key
Carrying Recoverable Impairment
Items period Key parameters of the forecast period of the parameters
amount amount amount
duration stable of the
period stable
period
* Forecast period: This refers to the
projected useful life of the primary
equipment within the asset group.* Revenue forecast data: Based on
historical operating statistics actual
operating conditions and the business
Partial assets development plan of the asset group under
of Zhejiang evaluation with comprehensive Not Not
29694867.180.0029694867.189
Pharmaceutical consideration of market development applicable applicable
workshop 520 trends future revenue is determined by
forecasting the future sales volume and
unit selling price of each product.* Cost forecast data: Raw material
procurement costs are established through
a comprehensive analysis of historical data
and industry quotation benchmarks. Labor
2012025 Annual Report of Zhejiang NHU Co. Ltd.
Basis for
Key determining
Forecast parameters the key
Carrying Recoverable Impairment
Items period Key parameters of the forecast period of the parameters
amount amount amount
duration stable of the
period stable
period
costs are projected by taking into account
two key factors: the increase in the number
of workshop personnel necessitated by the
Company's expansion and the
corresponding rise in average wages per
employee. Other cost components are
primarily estimated using a ratio-based
forecasting approach.* Expense forecast data: These are
predominantly projected utilizing a
ratio-based forecasting methodology.Total 29694867.18 0.00 29694867.18
14. Right-of-use assets
(1) Status of right-of-use assets
Unit: RMBYuan
Items Houses and buildings Total
I. Original carrying amount
1. Opening balance 16612419.88 16612419.88
2. Amount increased in the current
353756.46353756.46
period
(1) Leased 353756.46 353756.46
3. Decreased amount in the current
period
4. Ending balance 16966176.34 16966176.34
II. Accumulated depreciation
1. Opening balance 3389550.79 3389550.79
2. Amount increased in the current
4459907.684459907.68
period
(1) Provision 4459907.68 4459907.68
3. Decreased amount in the current
period
4. Ending balance 7849458.47 7849458.47
III. Carrying amount
1. Carrying amount at the end of the
9116717.879116717.87
period
2. Carrying amount at the beginning
13222869.0913222869.09
of period
2022025 Annual Report of Zhejiang NHU Co. Ltd.
(2) Impairment testing of the right-of-use assets
□Applicable□ Not applicable
15. Intangible assets
(1) Status of intangible assets
Unit: RMBYuan
s Non-patentedItems Land use rights Patent right Software Total
technologies
I. Original carrying
amount
1. Opening balance 2635898144.02 37568541.62 90580942.21 90169674.90 2854217302.75
2. Amount increased
236171990.625204458.3016223331.6220291229.19277891009.73
in the current period
(1) Purchase 181211510.40 5204458.30 16223331.62 2456069.42 205095369.74
(2) Transfer from
construction in 17835159.77 17835159.77
progress
(3) Transfer to
54960480.2254960480.22
inventories
3. Decreased amount
95635750.0095635750.00
in the current period
(1) Disposal 95635750.00 95635750.00
4. Ending balance 2776434384.64 42772999.92 106804273.83 110460904.09 3036472562.48
II. Accumulated
amortization
1. Opening balance 315858841.85 11137654.08 13330650.90 30990189.73 371317336.56
2. Amount increased
53051813.953399369.829689985.359099558.3275240727.44
in the current period
(1) Provision 53051813.95 3399369.82 9689985.35 9099558.32 75240727.44
3. Decreased amount
159392.92159392.92
in the current period
(1) Disposal 159392.92 159392.92
4. Ending balance 368751262.88 14537023.90 23020636.25 40089748.05 446398671.08
III. Carrying amount
1. Carrying amount
at the end of the 2407683121.76 28235976.02 83783637.58 70371156.04 2590073891.40
period
2. Carrying amount
at the beginning of 2320039302.17 26430887.54 77250291.31 59179485.17 2482899966.19
period
At the end of this period the proportion of intangible assets formed through internal research and development of the Company to
the balance of intangible assets is 0.59%.
(2) Impairment testing of intangible assets
□Applicable□ Not applicable
2032025 Annual Report of Zhejiang NHU Co. Ltd.
16. Goodwill
(1) Original carrying amount of goodwill
Unit: RMBYuan
The name of Increase in the current period Decrease in the current period
the invested
Opening Foreign
unit or items Formed by currency Closing balancebalance
forming business Disposal Other decreasestranslation
goodwill combination reserves
Bardoterminal
2163742.00204077.242367819.24
GmbH
NHU/Chr.Olesen Latin 3622704.97 3622704.97
America A/S
Total 5786446.97 204077.24 5990524.21
(2) Impairment provision for goodwill
Unit: RMBYuan
The name of Increase in the current period Decrease in the current period
the invested
Opening Foreign
unit or items currency Closing balancebalance
forming Provision Disposal Other decreasestranslation
goodwill reserves
Bardoterminal
2163742.00204077.242367819.24
GmbH
Total 2163742.00 204077.24 2367819.24
(3) Information about the asset group or combination of asset groups of goodwill
Composition and Basis of the Asset Group Operating Division Consistency with Previous
Name
or Portfolio to Which It Belongs and Basis Years
For an independently accounted overseas
Independent
warehousing and logistics company the
Bardoterminal GmbH warehousing and Yes
management will recognize it as a single
logistics company
asset group from the date of acquisition
For sales entities with independent
NHU/Chr. Olesen Latin accounting overseas the management Independent sales
Yes
America A/S identifies them as a single asset group from entity
the time of acquisition
Changes in an asset group or a combination of asset groups: None
(4) Specific methods for determining the recoverable amount
The recoverable amount is determined based on the net of fair value less disposal costs.□ Applicable□ Not applicable
The recoverable amount is determined based on the present value of estimated future cash flows.□Applicable □ Not applicable
2042025 Annual Report of Zhejiang NHU Co. Ltd.
Unit: RMBYuan
Basis for
Key Key determining
Forecast
Carrying Recoverable Impairme parameters of parameters of the key
Items period
amount amount nt amount the forecast the stable parameters of
duration
period period the stable
period
NHU/Chr.Olesen Latin 99354593.97 630354470.10
America A/S
Bardoterminal
2959099.56106318907.20
GmbH
Total 102313693.53 736673377.30
17. Long-term deferred expenses
Unit: RMBYuan
Increased amount Amortized amount
Other decreased
Items Opening balance in the current in the current Closing balance
amount
period period
Renovation costs 5086726.47 3844246.82 1242479.65
Catalyst expenses 27972854.42 9738233.64 18234620.78
Total 33059580.89 13582480.46 19477100.43
18. Deferred income tax assets / deferred income tax liabilities
(1) Non-offset deferred income tax assets
Unit: RMBYuan
Closing balance Opening balance
Items Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for
109470361.0717528759.5482764678.6513331701.98
impairment of assets
Unrealized profit from
93256153.8313988423.06106224182.3115933627.32
internal transaction
Deferred income 166211235.01 24931685.24 182140134.06 27321020.11
Sales rebates 45143439.52 6771515.93
Lease liabilities 2603650.85 390547.63 2715619.54 407342.93
Total 416684840.28 63610931.40 373844614.56 56993692.34
(2) Non-offset deferred income tax liabilities
Unit: RMBYuan
Closing balance Opening balance
Items Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Full pre-tax deduction for
1368856067.79205351881.781544604208.17241027455.22
fixed assets.
2052025 Annual Report of Zhejiang NHU Co. Ltd.
Closing balance Opening balance
Items Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Fair value of other equity
instruments investment at 42336000.00 6350400.00
the end of the period
Untaxed profits of NHU
(Hong Kong) Trading Co. 598372110.33 89755816.55
Ltd.Right-of-use assets 7940001.94 1191000.29 10916744.74 1637511.71
Changes in fair value of
trading financial
312250.0078062.50745816.34186454.09
instruments and derivative
financial instruments
Total 1419444319.73 212971344.57 2154638879.58 332607237.57
(3) Deferred income tax assets or liabilities presented by netting after offset
Unit: RMBYuan
Amount of deferred Amount of deferred
Ending balance of Opening balance of
income tax assets and income tax assets and
deferred income tax deferred income tax
Items liabilities liabilities
assets or liabilities after assets or liabilities after
mutually-offset end of mutually-offset
offset offsetting
the period beginning of the period
Deferred income tax
60918480.412692450.9954887646.032106046.31
assets
Deferred income tax
60918480.41152052864.1654887646.03277719591.54
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: RMBYuan
Items Closing balance Opening balance
Deductible temporary differences 1194450604.18 904662832.02
Deductible loss 3640655005.58 3375918624.25
Total 4835105609.76 4280581456.27
(5) The deductible loss of unrecognized deferred income tax assets will expire in the following years
Unit: RMBYuan
Year Closing balance Opening balance Notes
202523414489.87
202612470639.4536440047.05
202736109953.27165841662.42
202892988113.6597699902.16
2029157453878.38169350596.82
2030287710194.39198032265.79
2031171759808.89240693205.88
2032686611544.78898257207.22
2062025 Annual Report of Zhejiang NHU Co. Ltd.
Year Closing balance Opening balance Notes
2033550583877.97781328690.97
2034500973611.00764860556.07
2035479287801.45
Non-offsettable losses of
664705582.35
overseas companies
Total 3640655005.58 3375918624.25
19. Other non-current assets
Unit: RMBYuan
Closing balance Opening balance
Items Depreciation Depreciation Carrying
Book balance Carrying amount Book balance
reserves reserves amount
Emission
trading rights 10488933.12 10488933.12 12404429.26 12404429.26
fee
Coal quota
65263600.0065263600.0072113200.0072113200.00
payment
Certificate of
deposit of large 411144444.44 411144444.44
amount
Prepaid land
transfer 518405000.00 518405000.00
payment
Prepaid for
long-term asset 471339952.22 471339952.22 75146826.14 75146826.14
funds
Total 1476641929.78 1476641929.78 159664455.40 159664455.40
20. Assets with restricted ownership or use rights
Unit: RMBYuan
End of the period Beginning of the period
Items Carrying Type of Restriction Carrying Type of Restriction
Book balance Book balance
amount restriction situations amount restriction situations
Bank acceptance
bill deposits
customs duty
deposits
letter-of-guarantee
Guarantee
deposits water fee
Cash and Pledged and deposit of
deposits
bank 46418753.27 46418753.27 long-suspended 56029764.82 56029764.82 Pledged bank
emission-rights
balances accounts acceptance
deposits
bills etc.letter-of-credit
deposits ETC
deposits
long-suspended
account balances
Notes 99511561.32 99511561.32 Pledged Establish
2072025 Annual Report of Zhejiang NHU Co. Ltd.
End of the period Beginning of the period
Items Carrying Type of Restriction Carrying Type of Restriction
Book balance Book balance
amount restriction situations amount restriction situations
receivable bank
acceptance
bill pledge
Mortgaged
Mortgaged for bank
Fixed assets 102070345.08 79042144.12 Mortgage 93273121.97 75137838.29 Pledged for bank
borrowings
borrowings
Mortgaged
Intangible Mortgaged for bank
10794997.29 10794997.29 Mortgage 9864599.74 9864599.74 Pledged for bank
assets borrowings
borrowings
Establish
Establish bank
Receivables bank
135353157.67 135353157.67 Pledged acceptance bill 36038583.82 36038583.82 Pledged
financing acceptance
pledge
bill pledge
Total 294637253.31 271609052.35 294717631.67 276582347.99
21. Short-term borrowings
(1) Classification of short-term loans
Unit: RMBYuan
Items Closing balance Opening balance
Guaranteed borrowing 6604793.50 16626789.02
Credit loans 668567888.87 1145885450.02
Total 675172682.37 1162512239.04
22. Financial liabilities held for trading
Unit: RMBYuan
Items Closing balance Opening balance
Financial liabilities held for trading 11151258.46
Including: Financial liabilities classified
as measured at fair value with changes 11151258.46
recognized in profit or loss
Including: Derivative financial liabilities 11151258.46
Total 11151258.46
23. Notes payable
Unit: RMBYuan
Type Closing balance Opening balance
Bank acceptance bills 70054101.63 159164822.28
Total 70054101.63 159164822.28
2082025 Annual Report of Zhejiang NHU Co. Ltd.
24. Accounts Payable
(1) Presentation of accounts payable
Unit: RMBYuan
Items Closing balance Opening balance
Materials and labor payments 1040052507.44 785807160.73
Payment for engineering and equipment 740255257.64 900171996.82
Total 1780307765.08 1685979157.55
25. Other payables
Unit: RMBYuan
Items Closing balance Opening balance
Other payables 131685145.99 122424090.50
Total 131685145.99 122424090.50
(1) Other payables
1) Presentation of other payables by nature of the payment
Unit: RMBYuan
Items Closing balance Opening balance
Accrued and unpaid expenses 77784423.40 83120582.74
Deposits and guarantee deposits 30090146.97 19802441.12
Temporary receipts payable 13548987.92 9926159.87
Others 10261587.70 9574906.77
Total 131685145.99 122424090.50
26. Contract liabilities
Unit: RMBYuan
Items Closing balance Opening balance
Advances from customers 294819090.20 237013669.77
Total 294819090.20 237013669.77
27. Employee benefits payable
(1) Presentation of employee benefits payable
Unit: RMBYuan
Increase in the current Decrease in the current
Items Opening balance Closing balance
period period
I. Short-term employee
473107111.452088191240.742049783208.04511515144.15
benefits
2092025 Annual Report of Zhejiang NHU Co. Ltd.
Increase in the current Decrease in the current
Items Opening balance Closing balance
period period
II. Post-employment
benefits - defined 136359072.06 136359072.06
contribution plans
Total 473107111.45 2224550312.80 2186142280.10 511515144.15
(2) Presentation of short-term compensation
Unit: RMBYuan
Increase in the current Decrease in the current
Items Opening balance Closing balance
period period
1. Salaries bonuses
allowances and 452079180.40 1831536174.06 1789447280.79 494168073.67
subsidies
2. Employee welfare
105138413.15105138413.15
fee
3. Social insurance
75116802.0075116802.00
premium
Incl.: Medical
67462405.7567462405.75
insurance premium
Industrial injury
7629045.317629045.31
insurance premium
Maternity insurance
25350.9425350.94
premium
4. Housing provident
60031111.4360031111.43
fund
5. Labor union
expenditure and
21027931.0516368740.1020049600.6717347070.48
employee education
expenses
Total 473107111.45 2088191240.74 2049783208.04 511515144.15
(3) Presentation of defined contribution plans
Unit: RMBYuan
Increase in the current Decrease in the current
Items Opening balance Closing balance
period period
1. Basic endowment
131789764.83131789764.83
insurance
2. Unemployment
4569307.234569307.23
insurance expense
Total 136359072.06 136359072.06
2102025 Annual Report of Zhejiang NHU Co. Ltd.
28. Taxes and fees payable
Unit: RMBYuan
Items Closing balance Opening balance
VAT 116722251.38 82104457.53
Corporate income tax 476673438.77 383826117.39
Individual income tax 16171313.03 12121593.63
Urban maintenance and construction tax 10415102.16 10830229.90
Land use tax 20379197.51 21150454.52
House property tax 20982936.57 20979824.95
Educational surcharge (local education
7944401.517891237.38
surcharge)
Stamp duty 180237.73
Total 669468878.66 538903915.30
29. Non-current liabilities due within one year
Unit: RMBYuan
Items Closing balance Opening balance
Long-term loans due within one year 3164135175.76 2463866907.63
Lease liabilities due within one year 1278697.73 1512006.31
Total 3165413873.49 2465378913.94
30. Other current liabilities
Unit: RMBYuan
Items Closing balance Opening balance
Output VAT to be transferred 32397758.57 25698183.73
Sales rebates 66960592.67 27866151.17
Total 99358351.24 53564334.90
31. Long-term loans
(1) Classification of long-term borrowings
Unit: RMBYuan
Items Closing balance Opening balance
Mortgage loan 11722307.35 18036415.25
Credit loans 4175456261.67 5309207306.00
Total 4187178569.02 5327243721.25
2112025 Annual Report of Zhejiang NHU Co. Ltd.
32. Lease liabilities
Unit: RMBYuan
Items Closing balance Opening balance
Outstanding lease payment 3380508.75 4602267.00
Less: Unamortized financing costs 880325.09 1017475.98
Total 2500183.66 3584791.02
33. Deferred income
Unit: RMBYuan
Increase in the Decrease in the
Items Opening balance Closing balance Cause of formation
current period current period
Government grants
related to assets
received by the
Company are
Government amortized
1025834591.0417101726.21143504568.66899431748.59
subsidies according to the
depreciation
schedule of the
corresponding
assets
Revenue-related
government grants
received by the
Government
6576000.00 6576000.00 Company are
subsidies
amortized to match
the actual expenses
incurred
Total 1025834591.04 23677726.21 143504568.66 906007748.59 --
Other notes: Government grants recognized in deferred income are detailed in Note 11.
34. Share capital
Unit: RMBYuan
Increase or decrease in the change (+ -)
Conversion
Opening balance Issue of of capital Closing balance
new Bonus shares Others Subtotal
reserve into
shares
shares
Total
3073421680.003073421680.00
shares
35. Capital surplus
Unit: RMBYuan
Increase in the current Decrease in the current
Items Opening balance Closing balance
period period
Capital premium (Share
2854024919.082854024919.08
premium)
Other capital reserve 278495049.34 3163285.07 281658334.41
2122025 Annual Report of Zhejiang NHU Co. Ltd.
Increase in the current Decrease in the current
Items Opening balance Closing balance
period period
Total 3132519968.42 3163285.07 3135683253.49
Other explanations including the increase and decrease in the current period and the explanation of the reasons for the changes:
Other capital reserve increased by RMB 3163285.07 in the period due to increases in the special reserves of the Company's
associates Zhejiang Chunhui Environmental Protection Energy Co. Ltd. and Zhejiang Saiya Chemical Materials Co. Ltd.resulting in a change in the Company's share of net assets.
36. Treasury stocks
Unit: RMBYuan
Increase in the current Decrease in the current
Items Opening balance Closing balance
period period
Treasury stock 556161195.70 556161195.70
Total 556161195.70 556161195.70
Other notes including changes during the period and explanations of the reasons for the changes: The increase in treasury shares
during the period was due to the Company repurchasing part of the publicly held shares intended to be used to implement the
equity incentive plan or the employee stock ownership plan.
37. Other comprehensive income
Unit: RMBYuan
Amount incurred in the current period
Less: Included
Less: Included
in other
in other
Amount comprehensive
comprehensive
incurred income for the
Opening income for the Less: Attributable Attributable Closing
Items before previous
balance previous Income to the parent to minorityincome period and balance
period and tax company shareholders
tax in the transferred in
transferred in expense after tax after tax
current retained
profit or loss
period earnings for
for the current
the current
period
period
I. Other
comprehensive
income that
cannot be 35985600.00 35985600.00
reclassified
into profit or
loss
Changes in the
fair value of
investments in 35985600.00 35985600.00
other equity
instruments
2132025 Annual Report of Zhejiang NHU Co. Ltd.
Amount incurred in the current period
Less: Included
Less: Included
in other
in other
Amount comprehensive
comprehensive
incurred income for the
Opening income for the Less: Attributable Attributablebefore previous ClosingItems
balance previous Income to the parent to minorityincome period and balance
period and tax company shareholders
tax in the transferred in
transferred in expense after tax after tax
current retained
profit or loss
period earnings for
for the current
the current
period
period
II. Other
comprehensive
income that
will be 91513343.50 -59755446.78 31757896.72
reclassified
into profit or
loss
Including:
other
comprehensive
income under
the equity 506954.43 506954.43
method that
can be
reclassified to
profit or loss
Translation
differences of
financial
statements 91006389.07 -59755446.78 31250942.29
denominated
in foreign
currency
Total other
comprehensive 91513343.50 -23769846.78 67743496.72
incomes
38. Special reserves
Unit: RMBYuan
Increase in the current Decrease in the current
Items Opening balance Closing balance
period period
Safety production
106348864.91102722700.0947015191.42162056373.58
expense
Total 106348864.91 102722700.09 47015191.42 162056373.58
Other explanations including the increase and decrease in the current period and the explanation of the reasons for the changes:
In accordance with the Administrative Measures for the Collection and Utilization of Enterprise Work Safety Funds hazardous
goods production and storage enterprises shall base the extraction on the actual operating revenue of the previous year using a
2142025 Annual Report of Zhejiang NHU Co. Ltd.
progressive decreasing rate method to extract monthly on average according to the following standards: 1) For operating revenue
not exceeding RMB 10 million extract at 4.5%; 2) For the portion of operating revenue exceeding RMB 10 million up to RMB
100 million extract at 2.25%; 3) For the portion of operating revenue exceeding RMB 100 million up to RMB 1 billion extract at
0.55%; 4) For the portion of operating revenue exceeding RMB 1 billion extract at 0.2%.
In accordance with the Administrative Measures for the Collection and Utilization of Enterprise Work Safety Funds the power
production and supply enterprises shall base the extraction on the actual operating revenue of the previous year adopting a
progressive decreasing rate method to extract monthly on average according to the following standards: 1) For operating revenue
not exceeding RMB 10 million extract at 3%; 2) For the portion of operating revenue exceeding RMB 10 million up to RMB 100
million extract at 1.5%; 3) For the portion of operating revenue exceeding RMB 100 million up to RMB 1 billion extract at 1%; 4)
For the portion of operating revenue exceeding RMB 1 billion up to RMB 5 billion extract at 0.8%; 5) For the portion of
operating revenue exceeding RMB 5 billion up to RMB 10 billion extract at 0.6%; 6) For the portion of operating revenue
exceeding RMB 10 billion extract at 0.2%.
39. Surplus reserves
Unit: RMBYuan
Increase in the current Decrease in the current
Items Opening balance Closing balance
period period
Statutory surplus
1545453678.001545453678.00
reserves
Total 1545453678.00 1545453678.00
Explanation of surplus reserves including the increase and decrease in the current period and the explanation of the reasons for the
change:
In accordance with the Company Law of the People's Republic of China and the Articles of Association the Company shall set
aside 10% of the parent company's net profit as a statutory surplus capital reserve; when the accumulated statutory surplus capital
reserve reaches 50% of the registered capital no further statutory surplus capital reserve need be set aside.
40. Undistributed profits
Unit: RMBYuan
Items Current period Prior period
Undistributed profits at the end of the last
21375740194.1216890233961.50
period before adjustment
Total undistributed profits at the
beginning of the adjustment period
(increase+ decrease-)
2152025 Annual Report of Zhejiang NHU Co. Ltd.
Items Current period Prior period
Undistributed profits at the beginning of
21375740194.1216890233961.50
the period after adjustment
Plus: net profit attributable to owners of
6764199225.295868545988.62
the parent company in the current period
Less: Dividends payable on common
2762482523.601383039756.00
stock
Undistributed profits at the end of the
25377456895.8121375740194.12
period
Details of the adjustment of the undistributed profits at the beginning of the period: None
41. Operating revenue and operating cost
Unit: RMBYuan
Amount incurred in the current period Amount incurred in the previous period
Items
Revenue Cost Revenue Cost
Main business 22185260522.36 12276896049.18 21477281729.13 12519749560.87
Other business 66101358.22 33911940.71 132310499.32 62251085.78
Total 22251361880.58 12310807989.89 21609592228.45 12582000646.65
Including: with
customers
22245192040.8712310264243.0621603602684.2912581115525.59
Revenue from
contracts
During the reporting period the lowest of audited profit before tax net profit and net profit after deducting non-recurring profit or
loss was negative.□ Yes□ No
Breakdown of the operating revenue and operating cost:
Unit: RMBYuan
Classification of contracts Operating revenue Operating cost
Business Type
Including:
Nutrition 14784368525.95 7721928084.89
Aroma chemicals 3865554569.03 1811221331.14
New materials 2114793685.42 1490792237.71
Others 1480475260.47 1286322589.32
Subtotal 22245192040.87 12310264243.06
Classified according to operation regions
Including:
Domestic 9314313013.91 6055868405.72
Overseas 12930879026.96 6254395837.34
2162025 Annual Report of Zhejiang NHU Co. Ltd.
Classification of contracts Operating revenue Operating cost
Subtotal 22245192040.87 12310264243.06
Classification by timing of goods transfer
Including:
Revenue recognized at a point in time 22245192040.87 12310264243.06
Subtotal 22245192040.87 12310264243.06
By sales channel
Including:
Direct selling 16954758364.69 9388420118.12
Agent sales 5290433676.18 2921844124.94
Subtotal 22245192040.87 12310264243.06
Information related to the transaction price allocated to remaining performance obligations:
At the end of the reporting period the amount of income corresponding to the obligations under the contract that have been signed
but have not been performed or have not been completely performed is RMB 3744465477.36. Of this amount RMB
3744465477.36 is expected to be recognized as revenue in 2026.
42. Taxes and surcharges
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Urban maintenance and construction tax 92006999.82 76045794.92
Education surcharge 70854520.57 57219416.96
House property tax 46308736.93 50835205.44
Land use tax 46962160.65 51508833.39
Vehicle and vessel use tax 43007.54 55046.69
Stamp duty 14805556.08 12705079.71
Environmental protection tax 3412964.06 2277631.64
Water resource tax 64515.20
Land value-added tax 98666.67
Total 274458460.85 250745675.42
43. Administrative expenses
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Employee compensation 345888648.74 304833632.86
Depreciation expense and amortization
116915031.47118011455.24
of intangible assets
Office expenses and travel expenses 73632759.34 63956466.67
Consulting fee 30561498.47 18007434.45
Business entertainment expenses 19754144.75 22671117.76
Insurance expenses 17393296.93 16466676.52
2172025 Annual Report of Zhejiang NHU Co. Ltd.
Items Amount incurred in the current period Amount incurred in the previous period
Employment security fund for the
15690912.3915587637.01
disabled
Others 37009476.74 36360120.75
Total 656845768.83 595894541.26
44. Selling expenses
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Employee compensation 93640277.98 96764617.15
Sales commission 43827628.83 33006654.41
Office expenses and travel expenses 29028624.41 35533327.84
Advertising and promotion expenses and
12726050.3114466757.92
business entertainment expenses
Others 7402525.24 10526920.92
Total 186625106.77 190298278.24
45. R & D expenses
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Employee compensation 498690643.18 457801674.45
Direct input 411748528.68 414653178.46
Depreciation expense and amortization
82980075.0182056953.92
of intangible assets
Outsourcing expenses 44274521.99 45365827.25
Office expenses and travel expenses 17318033.75 14657098.53
Others 44426097.79 21627007.89
Total 1099437900.40 1036161740.50
46. Financial expenses
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Interest expenses 223176363.34 282180513.56
Less: interest income 78265146.31 126041480.98
Exchange gains and losses (“-” for gains) -167554016.61 13241698.29
Bank commission charges and others 7896377.82 8667110.78
Total -14746421.76 178047841.65
2182025 Annual Report of Zhejiang NHU Co. Ltd.
47. Other income
Unit: RMBYuan
Sources of other incomes Amount incurred in the current period Amount incurred in the previous period
Government grants related to assets 143504568.66 138798244.94
Government grants related to income 68171921.27 62323920.04
Additional deduction of VAT input tax 39464749.68 65698515.38
Tax incentives for employing special
356335.69
groups
Refund of service charges for
withholding and paying personal income 1485876.64 1236338.31
tax
Total 252983451.94 268057018.67
48. Gain from changes in fair value
Unit: RMBYuan
Sources of income from changes in fair
Amount incurred in the current period Amount incurred in the previous period
values
Trading Financial Assets 67412145.59 17475998.10
Including: fair value change income
67412145.5917475998.10
from derivative financial instruments
Financial liabilities held for trading -120803315.72 -31076479.29
Including: Gains from changes in
the fair value of financial liabilities
-120803315.72-31076479.29
classified as measured at fair value
through profit or loss
Total -53391170.13 -13600481.19
49. Investment income
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Return on long-term equity investments
100113224.9553851462.30
measured by the equity method
Investment income from disposal of
47569632.62
long-term equity investment.Investment income from disposal of
8993269.40-23323516.77
trading (held-for-trading) financial assets
Dividend income from investment in
other equity instruments during the 5292000.00
holding period
Interest on discounted bills -3.29 -1631336.27
Income of bank financial products and
26161672.54808128.72
structural deposits
Total 140560163.60 77274370.60
2192025 Annual Report of Zhejiang NHU Co. Ltd.
50. Credit impairment losses
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Bad debt losses (“-” for losses) 12879377.53 -55009881.32
Total 12879377.53 -55009881.32
51. Asset impairment losses
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Losses from inventory write-downs and
impairment losses on contract fulfillment -229132844.28 -49152744.77
costs (“-” for losses)
Fixed assets impairment losses (“-” for
-6294033.70-32805182.59
loss)
Total -235426877.98 -81957927.36
52. Income from disposal of assets
Unit: RMBYuan
Source of income from asset disposal Amount incurred in the current period Amount incurred in the previous period
Gains from disposal of non-current assets
-1494406.521393189.08
(“-” for losses)
53. Non-operating income
Unit: RMBYuan
Amount incurred in the Amount incurred in the Amount included in current
Items
current period previous period non-recurring gains and losses
Compensation income 3332198.20 3980828.25 3332198.20
Amounts not required to be
498000.001291804.52
paid
Carbon emissions allowance
13077452.7813077452.78
trading
Others 1377258.94 195779.06 1875258.94
Gains from damage and the
4000.00
discard of non-current assets
Total 18284909.92 5472411.83 18284909.92
2202025 Annual Report of Zhejiang NHU Co. Ltd.
54. Non-operating expenses
Unit: RMBYuan
Amount included in current
Amount incurred in the Amount incurred in the
Items non-recurring gains and
current period previous period
losses
External donation 5530939.29 2561503.79 5530939.29
Loss of damage and scrapping
11479044.5629676950.0011479044.56
of non-current assets
Others 5801122.19 2252564.26 5801122.19
Total 22811106.04 34491018.05 22811106.04
55. Income tax expense
(1) Income tax expense statement
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Current income tax expense 1180034212.83 992122445.40
Deferred income tax expense -132603532.06 54588534.00
Total 1047430680.77 1046710979.40
(2) Adjustment process of accounting profit and income tax expenses
Unit: RMBYuan
Items Amount incurred in the current period
Total profits 7849517417.92
Income tax expense calculated at statutory/applicable tax rate 1177427612.69
Influence of different tax rates applied to subsidiaries 126843651.39
Influence of adjusting income tax in previous periods 28281050.96
Influence of non-taxable income -20461913.72
Influence of non-deductible costs expenses and losses 5301254.48
Influence of deductible loss of unrecognized deferred income
-130298685.93
tax assets in previous period
Influence of deductible temporary differences or deductible
50965832.42
losses of unrecognized deferred income tax assets in this period
Others -25209227.26
Tax impact of additional deduction for research and
-159244139.85
development expenses (indicated with "-")
Additional deduction for wages paid to disabled employees and
-243533.52
other employment personnel encouraged by the state
Tax reduction on payable tax amount for special equipment
used in environmental protection energy saving water -5931220.89
conservation and production safety
Income tax expenses 1047430680.77
2212025 Annual Report of Zhejiang NHU Co. Ltd.
56. Other comprehensive income
See Note 37 of Section VII of the financial report for details.
57. Cash flow statement items
(1) Cash relating to operating activities
Other cash receipts relating to operating activities
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Interest income from bank deposits 61989735.25 117019106.62
Government grants received 96362207.55 175778850.00
Recovery of temporary loans deposits
15860393.0114563272.60
and guarantee deposits
Temporary receipts payable received 26226481.41 1068383.22
Net amount received from other items
22830382.049227580.54
and transactions
Total 223269199.26 317657192.98
Other cash paid related to operating activities
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Cash payments for research and
96725254.98109818805.43
development
Office expenses and travel expenses 104807216.66 106142740.79
Advertising and promotion expenses and
32480195.0637137875.68
business entertainment expenses
Sales commission 41106582.37 18421398.35
Insurance expenses 17656925.85 16614037.96
Consulting fee 30561498.47 18007434.45
Other expenses and net amount of
101737495.6365250108.45
transactions
Total 425075169.02 371392401.11
(2) Cash flows relating to investing activities
Other cash received from investing activities
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Redemption of wealth management
2150000000.00145000000.00
products
Recovery of foreign exchange option
8800000.00
margin
Recovery of engineering equipment
875023.57
deposits and guarantee deposits
2222025 Annual Report of Zhejiang NHU Co. Ltd.
Items Amount incurred in the current period Amount incurred in the previous period
Recovery of project engineering labor
854699.63
wage margin
Total 2160529723.20 145000000.00
Other cash paid related to investment activities
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Purchase of wealth management
products large-denomination certificates 2450000000.00 2350000000.00
of deposit and structured deposits
Net loss on investments in derivative
73078435.40
financial assets
Payment of deposit for pollutant
221221.57
discharge rights
Payment of foreign exchange option
8800000.00
margin
Payment of engineering equipment
5250160.00
deposits and guarantee deposits
Payment of project engineering labor
6456.43
wage margin
Total 2523299656.97 2364056616.43
(3) Cash relating to financing activities
Other cash received from financing activities
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Proceeds from interbank borrowings 108750334.91
Total 108750334.91
Other cash payments related to financing activities
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Share repurchase 556161195.70
Payment of bank financing fees 586896.92 2003808.29
Repayment of lease principal and interest 1859236.49 10546764.39
Repayment of interbank borrowings and
17309547.21
interest
Total 558607329.11 29860119.89
Changes in various liabilities generated from financing activities
□Applicable □ Not applicable
2232025 Annual Report of Zhejiang NHU Co. Ltd.
Unit: RMBYuan
Increase in the current period Decrease in the current period
Items Opening balance Non-cash Closing balance
Changes in cash Non-cash changes Changes in cash
changes
Short-term
1162512239.041020145057.4018147577.821525632191.89675172682.37
borrowings
Long-term
7791110628.882415429186.00196017371.093051243441.197351313744.78
borrowings
Lease
5096797.33529415.791847331.733778881.39
liabilities
Dividends
2777921933.602777921933.60
payable
Total 8958719665.25 3435574243.40 2992616298.30 7356644898.41 8030265308.54
(4) Notes to cash flows reported on a net basis
Relevant facts and
Items Basis for net presentation Financial impact
circumstances
The cash flows related to the Company's
investment business involve projects with quick
turnover large amounts and short terms
covering both cash inflows and outflows.Reporting these cash flows on a net basis better
Other cash receipts Redemption of wealth
illustrates their impact on the Company's payment
relating to investing management products and 12473500000.00
and debt repayment capabilities and is more
activities structured deposits
helpful for evaluating the Company's payment
and debt repayment abilities as well as analyzing
its future cash flows. Therefore the Company
reports the related cash flows generated from the
above business on a net basis.The cash flows related to the Company's
investment business involve projects with quick
turnover large amounts and short terms
covering both cash inflows and outflows.Reporting these cash flows on a net basis better
Other Paid Cashes Purchase of wealth
illustrates their impact on the Company's payment
Related to Investment management products and 12473500000.00
and debt repayment capabilities and is more
Activities structured deposits
helpful for evaluating the Company's payment
and debt repayment abilities as well as analyzing
its future cash flows. Therefore the Company
reports the related cash flows generated from the
above business on a net basis.
2242025 Annual Report of Zhejiang NHU Co. Ltd.
58. Supplementary information on the cash flow statement
(1) Supplementary Information for Cash Flow Statement
Unit: RMBYuan
Supplementary information Amount of the current period Amount of the previous period
1． Reconciliation of net profit to cash
flows from operating activities
Net profit 6802086737.15 5896870207.59
Add: provision for impairment of
222547500.45136967808.68
assets
Depreciation of fixed assets
depletion of oil and gas assets and
2217053452.792154249275.58
depreciation of productive biological
assets
Depreciation of right-of-use
4459907.681683308.27
assets
Amortization of intangible assets 72849754.11 67116768.27
Amortization of long-term
13582480.4610178561.69
deferred expenses
Losses on disposal of fixed
assets intangible assets and other 1494406.52 -1393189.08
long-term assets ("-" for income)
Loss on retirement of fixed assets
11479044.5629672950.00
("-" for income)
Losses on changes in fair value
53391170.1313600481.19
("-" for income)
Financial expenses ("-" for
39933832.59232201082.89
income)
Investment loss ("-" for income) -140560166.89 -78905706.87
Decrease in deferred income tax
-586404.68-1455967.13
assets ("-" for increase)
Increase in deferred income tax
-132017127.3856044501.13
liabilities (“-” for decrease)
Decrease in inventory ("-" for
-823384628.2726432933.95
increase)
Decrease of operating receivable
61722585.67-1963541281.38
items ("-" for increase)
Increase in operational payables
337671287.36447854402.40
("-" for decrease)
Others 55707508.67 45488046.15
Net cash flows from operating
8797431340.927073064183.33
activities
2． Material investing and financing
activities not involving cash receipt and
payment
Conversion of debt into capital
Convertible corporate bonds due
within one year
2252025 Annual Report of Zhejiang NHU Co. Ltd.
Supplementary information Amount of the current period Amount of the previous period
Fixed assets under finance lease
3． Net changes in cash and cash
equivalents:
Ending balance of cash 7819707489.01 5521452666.47
Less: Opening balance of cash 5521452666.47 4446570415.30
Add: Ending balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase of cash and cash
2298254822.541074882251.17
equivalents
(2) Composition of cash and cash equivalents
Unit: RMBYuan
Items Closing balance Opening balance
I. Cash 7819707489.01 5521452666.47
Including: cash in the vault 19519.80 12825.19
Bank deposits that can be used
7819579040.645521431438.36
for payment at any time
Other monetary funds that can be
108928.578402.92
used for payment at any time
II. Cash and cash equivalents at the end
7819707489.015521452666.47
of the period
Including: Cash and cash equivalents
with restricted use by the parent 231285799.32 464483762.87
company or a subsidiary of the group
(3) Situations where the scope of use is restricted but still listed as cash and cash equivalents
Unit: RMBYuan
Reasons for still being
Amount of the previous
Items Amount of the current period classified as cash and cash
period
equivalents
Monetary funds deposited
Cash and bank balances 231285799.32 464483762.87
overseas
Total 231285799.32 464483762.87
(4) Monetary funds that do not belong to cash and cash equivalents
Unit: RMBYuan
Reasons for not being
Amount of the previous
Items Amount of the current period classified as cash and cash
period
equivalents
Large-denomination
Cash and bank balances 100143888.89 2359022374.36 certificates of deposit and
interest
2262025 Annual Report of Zhejiang NHU Co. Ltd.
Reasons for not being
Amount of the previous
Items Amount of the current period classified as cash and cash
period
equivalents
38900815.38 30809898.16 Deposit for bank acceptance
4117750.00 3762850.00 Deposit for customs duty
1714764.00 8183592.83 Deposit for letter of guarantee
1063853.85 1263178.80 Deposit for water charges
370073.49 1458021.83 Deposit for letters of credit
221221.57 Deposit for emission rights
25500.00 22500.00 Deposit for ETC
Long-suspended account
4774.98
balance
Margin for foreign exchange
8800000.00
options
Safety construction guarantee
875023.57
deposit
Wage guarantee deposit for
854699.63
project engineering labor
Total 146562642.16 2415052139.18
59. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMBYuan
Ending foreign currency Converted RMB balance at
Items Converted exchange rate
balance the end of the period
Cash and bank balances 371201044.48
Including: USD 27940853.92 7.028800 196390674.03
EUR 15972859.93 8.235500 131544487.95
HKD 261755.73 0.903220 236423.01
JPY 226714915.61 0.044797 10156148.07
GBP 26767.81 9.434600 252543.58
BRL 16256967.16 1.279500 20800789.48
MXN 11286081.13 0.389880 4400217.31
PLN 21443.17 1.949700 41807.75
SGD 134171.03 5.458600 732385.98
TRY 22593558.13 0.163140 3685913.07
VND 11091909659.00 0.00026683 2959654.25
Accounts receivable 2266311289.89
Including: USD 238969263.46 7.028800 1679667159.01
2272025 Annual Report of Zhejiang NHU Co. Ltd.
Ending foreign currency Converted RMB balance at
Items Converted exchange rate
balance the end of the period
EUR 53823909.31 8.235500 443266805.12
GBP 1287629.56 9.434600 12148269.85
BRL 100772464.55 1.279500 128938368.39
VND 8584820000.00 0.00026683 2290687.52
Long-term borrowings 11722307.34
Including: EUR 1423387.45 8.235500 11722307.34
Other receivables 156704512.24
Including: USD 1572.00 7.028800 11049.27
EUR 5014198.39 8.235500 41294430.84
JPY 116313286.00 0.044797 5210486.27
VND 27000000.00 0.00026683 7204.41
BRL 63950152.03 1.279500 81824219.52
MXN 71252371.51 0.389880 27779874.60
SGD 54829.67 5.458600 299293.24
TRY 1703776.42 0.163140 277954.09
Short-term borrowings 6601916.97
Including: EUR 342924.66 8.235500 2824156.04
DKK 3428717.49 1.101800 3777760.93
Accounts payable 272159606.35
Including: USD 17313133.06 7.028800 121690549.65
EUR 16869746.00 8.235500 138930793.18
JPY 1527504.00 0.044797 68427.60
DKK 120041.90 1.101800 132262.17
BRL 5283586.32 1.279500 6760348.70
MXN 11104130.97 0.389880 4329278.58
VND 661470000.00 0.00026683 176500.04
TRY 437945.48 0.163140 71446.43
Other payables 207253606.99
Including: USD 2025276.22 7.028800 14235261.50
EUR 14663343.69 8.235500 120759966.96
JPY 100000000.00 0.044797 4479700.00
HKD 3000.00 0.903220 2709.66
VND 27.00 0.00026683 0.01
2282025 Annual Report of Zhejiang NHU Co. Ltd.
Ending foreign currency Converted RMB balance at
Items Converted exchange rate
balance the end of the period
BRL 52709668.78 1.279500 67442021.20
SGD 35982.40 5.458600 196413.53
TRY 843043.60 0.163140 137534.13
Non-current liabilities that
9013525.20
mature within one year
Including: USD 88709.59 7.028800 623521.97
EUR 973203.33 8.235500 8014816.02
BRL 293229.55 1.279500 375187.21
(2) Explanation of overseas operating entities including for important overseas operating entities the
main overseas operating places bookkeeping base currency and selection basis shall be disclosed and the
reasons for changes in bookkeeping base currency shall also be disclosed.□Applicable□ Not applicable
60. Lease
(1) The Company acts as the lessee
□Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable□ Not applicable
Lease expenses for simplified treatment of short-term leases or low-value asset leases
□Applicable □ Not applicable
1) For related information on right-of-use assets see Note 14 of Section VII of the financial report.
2) The details on accounting policies for short-term leases and low-value asset leases of the Company are set out in Note 29 of
Section V of this financial report. The amounts of short-term lease expenses and low-value asset lease expenses recognized in the
current profit or loss are as follows:
Unit: RMB Yuan
Amount of the current Amount at the same period
Items
period last year
Short-term lease expenses 4663639.61 3544502.58
Total 4663639.61 3544502.58
2292025 Annual Report of Zhejiang NHU Co. Ltd.
3) Profit or loss of the current period and cash flows related to the lease
Unit: RMB Yuan
Amount of the current Amount at the same period
Items
period last year
Interest charges on lease liabilities 212547.15 288503.24
Total cash outflows related to the leases 6802694.48 14303937.12
4) For the analysis of the maturity profile of lease liabilities and the related liquidity risk management see Note 29 of
Section V of the financial report.
(2) The Company acts as the lessor
Operating lease as a lessor
□Applicable □ Not applicable
Unit: RMBYuan
Including: Income related to variable
Items Lease income lease payments not included in rental
receipts
Lease income 6169839.71
Total 6169839.71
Financial lease as a lessor
□ Applicable□ Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable □ Not applicable
Unit: RMBYuan
Undiscounted lease receipts for each year
Items
Closing balance Opening balance
First Year 1371619.12 1028642.20
Second Year 623853.21 330275.23
Third Year 293577.98 330275.23
Total undiscounted lease receipts after
2289050.311689192.66
five years
(3) Profit or loss on sales of finance leases recognized as a producer or distributor
□Applicable□ Not applicable
2302025 Annual Report of Zhejiang NHU Co. Ltd.
VIII. Research and development expenses
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Employee compensation 498690643.18 457801674.45
Direct input 411748528.68 414653178.46
Depreciation expense and amortization
82980075.0182056953.92
of intangible assets
Outsourcing expenses 44274521.99 45365827.25
Office expenses and travel expenses 17318033.75 14657098.53
Others 44426097.79 21627007.89
Total 1099437900.40 1036161740.50
Including: expensed R&D expenditures 1099437900.40 1036161740.50
IX. Changes in the scope of consolidation
1. Changes in the scope of consolidation due to other reasons
Explain changes in the scope of consolidation caused by other reasons (for example newly established subsidiaries liquidated
subsidiaries etc.) and the related details:
(1) Increase in the scope of consolidation
Equity
Capital contribution
Name of companies acquisition Equity acquisition date Capital contribution
proportion (%)
method
NHU North America LLC Establishment January 2 2025 USD 250000 100.00%
NHU BESLENME GIDA
SANAYi VE TiCARET Establishment January 17 2025 USD 246900 100.00%
LiMiTED SIRKETI
Zhejiang NHU Holdings
Establishment April 15 2025 RMB 500000000 100.00%
Co. Ltd.
(2) Decrease of consolidation scope
Shandong NHU Vitamins Co. Ltd. was absorbed and merged into Shandong NHU Fine Chemical Science and Technology Co.Ltd. a wholly owned subsidiary of the Company on January 1 2025. After the merger Shandong NHU Fine Chemical Science
and Technology Co. Ltd. remained as the surviving company and continued operations and its registered capital was changed
from RMB 400000000 to RMB 900000000. Shandong NHU Vitamins Co. Ltd. was deregistered and all of its assets rights
and obligations were assumed by Shandong NHU Fine Chemical Science and Technology Co. Ltd. The related business
registration change procedures were completed in February 2025.
2312025 Annual Report of Zhejiang NHU Co. Ltd.
X. Interests in other entities
1. Interests in subsidiaries
(1) Composition of enterprise group
Unit: RMBYuan
Name of Main place Registratio Business Holding proportion Acquisition
Registered capital
subsidiary of business n place nature Direct Indirect method
NHU (Hong
Hong Hong
Kong) Establishmen
2400000.00 Kong Kong Business 100.00%
Trading Co. t
China China
Ltd.Shandong
NHU Weifang Weifang Manufacturin Establishmen
1100000000.00100.00%
Amino-acids Shandong Shandong g industry t
Co. Ltd.List significant subsidiaries; the materiality criteria are set out in Note 5 of Section V of the financial report.
2. Rights and interests in joint ventures or associates
(1) Summary financial information of insignificant (immaterial) joint ventures or associates
Unit: RMBYuan
Items Ending balance/amount incurred in Beginning balance/amount incurred in
current period previous period
Joint ventures:
Total carrying amount of investment 418125357.72 358644929.90
The total of the following items
calculated according to the shareholding
ratio
--Net profit 21082727.75 -13194048.59
--Total comprehensive income 21082727.75 -13194048.59
Associates:
Total carrying amount of investment 547225191.71 506617218.46
The total of the following items
calculated according to the shareholding
ratio
--Net profit 79030497.20 65807336.48
--Total comprehensive income 79030497.20 65807336.48
2322025 Annual Report of Zhejiang NHU Co. Ltd.
XI. Government subsidies
1. Government subsidies recognized based on receivable amounts at the end of the reporting period
□Applicable□ Not applicable
Reasons for not receiving the expected amount of government subsidies at the anticipated time
□ Applicable□ Not applicable
2. Liability items involving government subsidies
□Applicable □ Not applicable
Unit: RMBYuan
Amount
Amount of included in Amount
Other
new non-operati transferred in Asset-relate
Accounting Opening variations in Closing
subsidies in ng revenue other income d/income-re
items balance the current balance
the current of the in the current lated
period
period current period
period
1025834591.0417101726.21143504568.66899431748.59
Deferred Asset-related
income Related to
6576000.006576000.00
income
Total 1025834591.04 23677726.21 143504568.66 906007748.59
3. Government subsidies included in current profit and loss
□Applicable □ Not applicable
Unit: RMBYuan
Accounting items Amount incurred in the current period Amount incurred in the previous period
Government grants related to assets 143504568.66 138798244.94
Government grants related to income 68171921.27 62323920.04
Amount of the impact of government
10691017.53
interest subsidies on profit before tax
Total 211676489.93 211813182.51
XII. Risks related to financial instruments
1. Various types of risks arising from financial instruments
The Company's major financial instruments include cash and cash equivalents notes receivable accounts receivable receivables
financing other receivables other current assets financial assets held for trading investments in other equity instruments notes
payable accounts payable other payables short-term borrowings financial liabilities held for trading non-current liabilities due
within one year long-term borrowings and lease liabilities. Detailed information on the various financial instruments has been
2332025 Annual Report of Zhejiang NHU Co. Ltd.
disclosed in the related notes. Risks related to the financial instruments and the Company’s risk management policy used for
reducing these risks are described as follows. The Company’s management governs and monitors these exposures to ensure that
these risks are controlled within the limited scope.
(1) Risk management goals and policies
The main risks arising from the Company's financial instruments are credit risk liquidity risk and market risk (including exchange
rate risk interest rate risk and commodity price risk).The Company’s risk management aims to reach proper balance between risks and benefits to minimize the negative impact of
risks on the Company's operating results and to maximize the interests of shareholders and other equity investors. Based on these
risk management goals the Company’s basic strategy for risk management is to determine and analyze various risks faced by the
Company establish an appropriate risk tolerance bottom line and conduct risk management and supervise various risks in a timely
and reliable manner to control the risks within a limited scope.The Company has formulated risk management policies to identify and analyze the risks it faces. These risk management policies
clearly specify particular risks and cover a wide range of areas including market risk credit risk and liquidity risk management.The Company regularly assesses changes in the market environment and in its operating activities to determine whether to update
its risk management policies and systems. The Company's Internal Audit Department conducts periodic reviews of risk
management controls and procedures and reports the review results to the Audit Committee of the Company.The Company manages financial instrument risks by appropriately diversifying its investments and business portfolio. It also
mitigates risks concentrated in a single industry specific region or particular counterparty by implementing targeted risk
management policies.
1) Credit risk
Credit risk refers to the risk that a counterparty's failure to perform its contractual obligations will cause the Company to incur
financial loss.The Company oversees credit risk through the classification of its portfolio. Credit risk mainly arises from bank deposits notes
receivable accounts receivable and other receivables.The Company's bank deposits are primarily held with reputable financial institutions that have high credit ratings. The Company
expects that there are no significant credit risks associated with these bank deposits.For notes receivable accounts receivable and other receivables the Company has established policies to control credit risk
exposure. The Company assesses customers' creditworthiness based on their financial condition credit records and other factors
such as current market conditions and sets the corresponding credit terms accordingly. The Company will regularly monitor
customers' credit records. For those with less favorable credit records the Company will implement measures such as sending
2342025 Annual Report of Zhejiang NHU Co. Ltd.
written collection notices reducing credit terms or discontinuing credit arrangements to maintain overall credit risk within
manageable limits.The debtors of the Company's accounts receivable are customers distributed across different industries and regions. The Company
continuously assesses the creditworthiness of accounts receivable and when appropriate purchases credit guarantee insurance.The maximum credit risk exposure of the Company is the carrying amount of the financial assets in the balance sheet. The
Company has not provided any other guarantees that could potentially expose it to credit risk.Accounts receivable from the top five customers represented 18.51% of the Company’s total accounts receivable (compared to
28.57% in 2024). Additionally other receivables from the top five companies accounted for 83.54% of the Company’s total other
receivables (compared to 86.24% in 2024).
2) Liquidity risk
Liquidity risk refers to the risk of shortage of funds when the Company fulfills its obligation to settle by delivering cash or other
financial assets.When managing liquidity risk the Company maintains and monitors cash and cash equivalents the management deem sufficient to
meet the Company's operating needs and to reduce the impact of cash flow fluctuations. To control such risk the Company applies
various financing methods such as bill settlement and bank loans in appropriate combination of long-term and short-term
financing ways to optimize the financing structure and keep the balancing between financing sustainability and flexibility. The
Company has obtained lines of credit from several commercial banks to satisfy its working capital demand and capital
expenditure.As of the end of the period the Company’s financial liabilities are categorized based on the maturities of the undiscounted
remaining contractual cash flows as follows (Unit: RMB):
Closing balance
Items
Within one year One to three years Three years or more Total
Financial liabilities:
Bank loans 3980899147.46 3784283730.64 536333678.12 8301516556.23
Notes payable 70054101.63 70054101.63
Accounts payable 1780307765.08 1780307765.08
Other payables 131685145.99 131685145.99
Lease liabilities 1421784.44 714285.72 2652285.72 4788355.88
Total financial liabilities 5964367944.60 3784998016.36 538985963.84 10288351924.81
At the end of the previous year the Company’s financial liabilities are categorized based on the maturities of the undiscounted
remaining contractual cash flows as follows (Unit: RMB):
2352025 Annual Report of Zhejiang NHU Co. Ltd.
Balance at the end of the previous year
Items
Within one year One to three years Three years or more Total
Financial liabilities:
Bank loans 3821786544.74 5361753527.03 82179440.15 9265719511.92
Notes payable 159164822.28 159164822.28
Accounts payable 1685979157.55 1685979157.55
Other payables 122424090.50 122424090.50
Lease liabilities 1711482.85 1711886.07 2890380.93 6313749.85
Total financial liabilities 5791066097.92 5363465413.10 85069821.08 11239601332.10
The financial liabilities presented in the table above represent undiscounted contractual cash flows and may therefore differ from
the carrying amounts reported on the balance sheet.
3) Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flow of financial instruments will fluctuate
due to market price changes including interest rate risk exchange rate risk and other price risks.* Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to changes in
market interest rates. Interest rate risk can arise from both recognized interest-bearing financial instruments and unrecognized
instruments such as certain loan commitments.The Company's interest rate risk arises primarily from long-term bank loans and other long-term interest-bearing debts.Floating-rate financial liabilities expose the Company to cash flow interest rate risk while fixed-rate financial liabilities expose the
Company to fair value interest rate risk. The Company determines the relative proportions of fixed-rate and floating-rate contracts
based on the prevailing market conditions at the time and maintains an appropriate portfolio of fixed and floating rate instruments
through regular reviews and monitoring.The Company closely monitors the effects of interest rate fluctuations on its overall interest rate risk. The Company has not yet
implemented a formal interest rate hedging policy. However management is responsible for monitoring interest rate risk and will
consider hedging significant interest rate risks as necessary. An increase in interest rates will raise the cost of newly incurred
interest-bearing debts and the Company's outstanding interest expenses on floating-rate interest-bearing debts significantly
adversely affecting the Company's financial performance. Management will make timely adjustments based on the latest market
conditions which may include arrangements for interest rate swaps to reduce interest rate risk.As of December 31 2025 the Company's bank borrowings bearing interest at floating rates amounted to RMB 5685241467.24
(December 31 2024: RMB 4534009205.93). Assuming other variables remain constant an interest rate change of 50 basis
points would not have a material impact on the Company's total profit and shareholders' equity.
2362025 Annual Report of Zhejiang NHU Co. Ltd.
For financial instruments held at the balance sheet date that expose the Company to fair value interest rate risk the effects on net
profit and shareholders' equity in the above sensitivity analysis assume a change in interest rates at the balance sheet date and
reflect the impact of remeasuring those financial instruments using the new rates. For floating-rate non-derivative instruments held
as of the balance sheet date that expose the Company to cash flow interest rate risk the impact on net profit and shareholders'
equity shown in the sensitivity analysis reflects the estimated annual effect of the specified interest rate changes on interest
expense or income. The analysis for the previous year was based on the same assumptions and methods.* Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to the change
of foreign exchange rate. Exchange rate risk can occur with financial instruments that are denominated in currencies different from
the functional currency.The Company's principal operations are located in China and its primary business is settled in RMB. However the
foreign-currency assets and liabilities already recognized by the Company and future foreign-currency transactions (the currencies
in which such foreign-currency assets liabilities and transactions are denominated are primarily the U.S. dollar the euro and the
Japanese yen) continue to be exposed to foreign exchange risk.For details of the Company's foreign-currency monetary assets and liabilities at the end of the reporting period see Note 59 of
Section VII of the financial report.The Company closely monitors the impact of exchange rate fluctuations on its exchange rate risk. The Company consistently
monitors the volume of the Group's foreign currency transactions as well as its foreign currency assets and liabilities to
effectively manage and minimize foreign exchange risk. To mitigate this risk the Company may engage in forward foreign
exchange contracts or currency swap agreements as hedging strategies.* Other price risks
Other price risk refers to the risk of volatility resulting from market price fluctuations beyond exchange rate and interest rate risks.These fluctuations may stem from factors specific to individual financial instruments or their issuers as well as from factors
affecting all comparable financial instruments traded in the market. Other price risks may arise from changes in commodity prices
stock market indices equity instrument prices and other risk variables.The Company closely monitors the impact of price fluctuations on the price risk of its investments in equity securities.Management is responsible for monitoring other price risks and will if necessary consider maintaining a diversified portfolio of
equity securities to mitigate the price risk associated with equity investments.
2372025 Annual Report of Zhejiang NHU Co. Ltd.
2. Hedging
(1) The Company conducts hedging activities for risk management.
□Applicable □ Not applicable
1) During this period the Company carried out foreign exchange hedge activities using forward foreign exchange contracts and
other derivative contracts as hedge instruments; some of the expected foreign-currency cash flows related to anticipated purchase
and sale transactions were designated as the hedged items in order to mitigate the risk that fluctuations in foreign exchange market
prices would cause variability in the Company's expected future cash flows from those anticipated purchases and sales.
2) During this period the Company conducted foreign exchange hedge transactions using derivative contracts such as forward
foreign exchange contracts as hedging instruments and designated certain foreign currency deposits as hedged items thereby
mitigating the risk the Company bears of fluctuations in its existing foreign currency deposits due to movements in foreign
exchange market prices.
(2) The Company conducts qualified hedging activities and applies hedge accounting.
□Applicable □□ Not applicable
(3) The Company engages in hedging activities for risk management purposes and expects to achieve its risk management
objectives but has not applied hedge accounting.□Applicable □ Not applicable
Items Reasons for not applying hedge accounting Impact on financial statements
The Company widely uses foreign exchange forward
contracts and other instruments globally to manage foreign
exchange risk related to the conversion between currencies
such as the USD EUR RMB and JPY. Because there is a Derivative financial assets: RMB
certain offsetting relationship in exchange rate fluctuations 13213250.21
Foreign exchange between different currencies this can to some extent Derivative financial liabilities: RMB 0.00
swap contract achieve the same effect as hedge accounting; therefore Investment income: RMB 8993269.40
hedge accounting has not been applied. Income from changes in fair value: RMB
-58453012.47
2382025 Annual Report of Zhejiang NHU Co. Ltd.
3. Financial assets
(1) Classification of transfer method
□Applicable □ Not applicable
Unit: RMBYuan
Nature of transferred Amount of transferred Basis for determining
Transfer method Derecognition situation
financial assets financial assets derecognition
It has transferred
Notes endorsed
Receivables financing 1026408996.70 Recognition terminated almost all of its risks
discount
and rewards
Total 1026408996.70
(2) Financial assets with termination of recognition due to transfer
□Applicable □ Not applicable
Unit: RMBYuan
Amount of financial assets
Transfer method of financial Gains or losses related to
Items with termination of
assets termination recognition
recognition
Receivables financing Endorsement and discount 1026408996.70 -3.29
Total 1026408996.70 -3.29
(3) Transferred financial assets with continuing involvement
□Applicable□ Not applicable
Other remarks
XIII. Disclosure of fair value
1. The ending fair value of assets and liabilities measured at fair value
Unit: RMBYuan
Ending fair value
Items The first level of The second level The third level of fair
fair value of fair value Total
value measurement
measurement measurement
I. Continuous fair value
--------
measurement
(I) Trading financial assets 2168275092.55 2168275092.55
1. Financial assets measured at
2168275092.552168275092.55
fair value through profit and loss
(1) Derivative financial assets 13213250.21 13213250.21
(2) Structured deposits 2155061842.34 2155061842.34
(II) Receivables financing 813062385.73 813062385.73
(III) Other equity instrument
60126147.5560126147.55
investments
2392025 Annual Report of Zhejiang NHU Co. Ltd.
Total amount of assets measured at
2168275092.55873188533.283041463625.83
fair value on a continuous basis
II. Non-recurring Fair Value
--------
Measurements
2. Qualitative and quantitative information on the valuation techniques and important parameters used
in recurring and non-recurring second-level fair value measurement items
The derivative financial assets measured at second-level fair value held by the Company are forward foreign exchange contracts.The Company determines their fair value by discounting to present value the difference between the contractual settlement
exchange rate specified in the forward foreign exchange contracts and the market forward exchange quotation at the balance sheet
date using the expected yield.
3. Qualitative and quantitative information on the valuation techniques and important parameters used
in recurring and non-recurring third-level fair value measurement items
(1) The Company's receivables financing measured at fair value using third-level inputs consists of bank acceptance bills which
have low credit risk and short remaining maturities and the Company determines their fair value based on their face value.
(2) The other equity instrument investments measured at fair value through third-level held by the Company are equity interests in
non-listed companies. For investments in unlisted equity instruments the Company comprehensively considers the use of the
market approach the discounted cash flow method and other methods to estimate fair value. If the operating environment
operating conditions and financial condition of the investee Zhejiang Second Pharma Co. Ltd. and Shanghai NewMargin Yongjin
Equity Enterprise (Limited Partnership) have not undergone significant changes the Company measures the investments at cost as
a reasonable estimate of fair value. The investee Shanghai NewMargin Yongjin Equity Enterprise (Limited Partnership) is
measured at a reasonable estimate of fair value based on the audited fund report.XIV. Related parties and related transactions
1. Information about the parent company of the Company
Proportion of
Shareholding ratio
Parent company parent company's
Registration place Business nature Registered capital of parent company
name voting rights to the
to the Company
Company
NHU Holding Xinchang Manufacturing
RMB 120000000 50.08% 50.08%
Group Co. Ltd. Zhejiang industry
Explanation of the parent company of the Company: The ultimate controller of the enterprise is Hu Baifan.
2402025 Annual Report of Zhejiang NHU Co. Ltd.
2. Information on subsidiaries of the Company
Details of the Company's subsidiaries are set out in Note 1(1) of Section X of the financial report.
3. Information on joint ventures and associates of the Company
Information about other joint ventures or associates that have related transactions with the Company in the current period or have
a balance resulting from related transactions with the Company in the previous period is as follows:
Name of joint ventures and associates Relationship with the Company
Ningbo Zhenhai Refining and Chemical NHU Biotechnology
Joint ventures of the Company
Co. Ltd.Zhejiang Chunhui Environmental Protection Energy Co. Ltd. Associates of the Company
Envalior NHU Engineering Materials (Zhejiang) Co. Ltd. Associates of the Company
Zhejiang Saiya Chemical Materials Co. Ltd. Associates of the Company
CysBio ApS Associates of the Company
Shandong Bin'an Vocational Training School Co. Ltd. Associates of the Company
Anhui Yingna Weixun Technology Co. Ltd. Associates of the Company
4. Information of other related parties
Name of other related parties Relationship between other related parties and the Company
Beijing Front Pharma CO. Ltd. Under the common control of NHU Holding Group Co. Ltd.Zhejiang Asen Pharmaceutical Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Zhejiang Deli Equipment Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Fuyuan Pharmaceutical Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Weifang Hecheng Real Estate Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Qionghai Heyue Property Service Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Qionghai Boao Heyue Hotel Management Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Shaoxing Heyue Property Services Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Zhejiang Jingshi Real Estate Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Shaoxing Yuexiu Education Development Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Shaoxing Jinghe Hotel Management Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Shaoxing Shangyu Hecheng Real Estate Co. Ltd. Under the common control of NHU Holding Group Co. Ltd.Zhejiang Yuexiu University Under the common control of NHU Holding Group Co. Ltd.Changbai Mountain Protection and Development Zone Heyue
Under the common control of NHU Holding Group Co. Ltd.Real Estate Development Co. Ltd.Heilongjiang Haotian Corn Development Co. Ltd. Minority shareholders of subsidiaries
Beijing Front Pharma CO. Ltd. Cangzhou Branch Branch of Beijing Front Pharma CO. Ltd.Shaoxing Heyue Property Services Co. Ltd. Shangyu Branch Branch of Shaoxing Heyue Property Services Co. Ltd.Other remarks:
2412025 Annual Report of Zhejiang NHU Co. Ltd.
Customer II holds 25% equity in NHU EUROPE GMBH a subsidiary controlled by the Company's subsidiary NHU Singapore
Pte. Ltd. As a precaution the Company discloses the transactions and outstanding balances between Customer II and the
subsidiary NHU EUROPE GMBH in the related party transaction section.
5. Related party transactions
(1) Related transactions for the purchase and sale of goods and the provision and receipt of services
Statement of purchases of goods and acceptance of services
Unit: RMBYuan
Amount incurred Exceed the Amount incurred
Related transaction Approved
Related parties in the current transaction limit or in the previous
content transaction limit
period not period
Zhejiang Saiya
Chemical Purchasing goods 220300804.01 235000000.00 No 262798027.33
Materials Co. Ltd.Ningbo Zhenhai
Refining and
Chemical NHU Purchasing goods 280741663.36 320000000.00 No
Biotechnology
Co. Ltd.Zhejiang Deli Purchasing goods 48466181.37 No 101971070.78
Equipment Co. Acceptance of 68000000.00
Ltd. 502920.34 No 1276976.10services
Shaoxing Jinghe Catering and
Hotel Management accommodation 1618775.75 1613799.89
Co. Ltd. services
Shaoxing Heyue
Property
Property Services
management 1054756.53 1047605.30
Co. Ltd. Shangyu
services
Branch
Shaoxing Yuexiu
Education
Training fees 131481.23 51634.62
Development Co.Ltd.Shaoxing Heyue Property
Property Services management 199560.00 199560.00
Co. Ltd. services No
3300000.00
Qionghai Boao
Catering and
Heyue Hotel
accommodation 5728.00 57124.58
Management Co.services
Ltd.NHU Holding Acceptance of
226858.68
Group Co. Ltd. services
Qionghai Heyue Property
Property Service management 215267.33
Co. Ltd. services
Zhejiang Jingshi
Acceptance of
Real Estate Co. 36693.35 47917.91
services
Ltd.Zhejiang Yuexiu Catering and
3000.00
University accommodation
2422025 Annual Report of Zhejiang NHU Co. Ltd.
Amount incurred Exceed the Amount incurred
Related transaction Approved
Related parties in the current transaction limit or in the previous
content transaction limit
period not period
services
Shaoxing Shangyu
Hecheng Real Maintenance fund 687262.27
Estate Co. Ltd.Zhejiang Asen
Pharmaceutical Purchasing goods 126705.84 153798.40
Co. Ltd.Fuyuan
Pharmaceutical Purchasing goods 9292.04
Co. Ltd.Changbai
Mountain
Protection and Catering and
Development Zone accommodation 17368.50
Heyue Real Estate services
Development Co.Ltd.Zhejiang Chunhui Purchase of steam 95490964.49 104188675.73
Environmental
Protection Energy Acceptance of 444341.21 601925.09
Co. Ltd. services
Heilongjiang Purchasing goods 28034590.34 12603362.84
Haotian Corn
Development Co. Purchase of steam 940587.15
Ltd.Consulting service
CysBio ApS 3779385.24
fee
Shandong Bin'an Training fees 356179.24 734243.51
Vocational
Training School Acceptance of 28301.89
Co. Ltd. services
Total 682268911.38 626300000.00 488495478.86
Statement of sales of goods/provision of services
Unit: RMBYuan
Related transaction Amount incurred in the Amount incurred in the
Related parties
content current period previous period
Sales of goods 145677070.30 131826245.23
Hazardous waste
35117.2220059.77
Envalior NHU Engineering disposal fee
Materials (Zhejiang) Co. Ltd. Water and electricity
1821422.811683610.39
charges
Management service fee 23198.57
Sales of goods 15812761.07 795481.07
Ningbo Zhenhai Refining and
Sales service and testing
Chemical NHU Biotechnology Co. 2993875.45
fees
Ltd.Provision of services 610000.00 17514318.25
Fuyuan Pharmaceutical Co. Ltd. Sales of goods 1553097.35 1247787.63
Zhejiang Deli Equipment Co. Ltd. Sales of goods 703474.08 220884.94
2432025 Annual Report of Zhejiang NHU Co. Ltd.
Related transaction Amount incurred in the Amount incurred in the
Related parties
content current period previous period
Heilongjiang Haotian Corn
Steam sales 459311.93
Development Co. Ltd.Beijing Front Pharma CO. Ltd. Testing fee 391509.43 188679.25
Cangzhou Branch Sales of goods 2300.89
Provision of services 235849.06
Zhejiang Second Pharma Co. Ltd. Testing fee 3735.84
Sales of goods 5603.77
Shandong Bin'an Vocational
Management service fee 226415.09 226415.09
Training School Co. Ltd.Pharmaceutical
Zhejiang Asen Pharmaceutical Co.intermediate and testing 8490.57 17462.26
Ltd.fee
Beijing Front Pharma CO. Ltd. Sales of goods 2367.26
Zhejiang Chunhui Environmental Pharmaceutical
136283.19
Protection Energy Co. Ltd. intermediate
Subtotal 170557696.03 153885131.73
(2) Related?party lease information
The Company acts as the lessor:
Unit: RMBYuan
Lease income
Types of leased Lease income recognized in
Name of lessee recognized in current
assets last period
period
Envalior NHU Engineering Materials Land use rights and
1060229.211062552.19
(Zhejiang) Co. Ltd. buildings
Land use rights and
Weifang Hecheng Real Estate Co. Ltd. 10285.72 10285.72
buildings
Land use rights and
Zhejiang Deli Equipment Co. Ltd. 77064.23 77064.23
buildings
Land use rights and
Zhejiang Jingshi Real Estate Co. Ltd. 197798.17 326238.53
buildings
Land use rights and
NHU Holding Group Co. Ltd. 13400.92 16513.76
buildings
Qionghai Boao Heyue Hotel Management Land use rights and
312000.00
Co. Ltd. buildings
Subtotal 1358778.25 1804654.43
The Company acts as the lessee:
Unit: RMBYuan
Lease expenses for short?term leases and leases of low?value assets
accounted for using the simplified approach (if applicable)
Name of lessor Types of leased assets
Amount incurred in the current Amount incurred in the previous
period period
NHU Holding Group Co. Land use rights and
718810.56684581.48
Ltd. buildings
2442025 Annual Report of Zhejiang NHU Co. Ltd.
(3) Remuneration of key management personnel
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Remuneration of key management
personnel 26364098.75
31615876.34
(4) Other related?party transactions
During this period the subsidiary NHU EUROPE GMBH sold goods to Customer II in the amount of RMB 181953835.01; the
accounts receivable balance at the end of the period was RMB 41044323.40.
6. Receivables and payables of related parties
(1) Accounts receivable
Unit: RMBYuan
Closing balance Opening balance
Project name Related parties
Book balance Bad-debt provision Book balance Bad-debt provision
Envalior NHU
Engineering
Accounts
Materials 47131641.33 2356582.07 33814553.47 1690727.67
receivable
(Zhejiang) Co.Ltd.Subtotal 47131641.33 2356582.07 33814553.47 1690727.67
Ningbo Zhenhai
Refining and
Other receivables Chemical NHU 2514698.55 125734.93 2000000.00 100000.00
Biotechnology
Co. Ltd.Zhejiang Chunhui
Environmental
Other receivables 20000.00 4000.00 20000.00 1000.00
Protection Energy
Co. Ltd.Subtotal 2534698.55 129734.93 2020000.00 101000.00
Zhejiang Deli
Other non-current
Equipment Co. 67685510.00
assets
Ltd.Subtotal 67685510.00
(2) Payable items
Unit: RMBYuan
Book balance at the beginning
Project name Related parties Closing book balance
of the period
Ningbo Zhenhai Refining and Chemical
237385884.16
NHU Biotechnology Co. Ltd.Accounts payable
Zhejiang Chunhui Environmental
12472492.1611789009.62
Protection Energy Co. Ltd.
2452025 Annual Report of Zhejiang NHU Co. Ltd.
Book balance at the beginning
Project name Related parties Closing book balance
of the period
Zhejiang Deli Equipment Co. Ltd. 10680005.30 11421085.71
CysBio ApS 1023018.50
Heilongjiang Haotian Corn Development
575475.87852650.48
Co. Ltd.Zhejiang Saiya Chemical Materials Co.
258119.47
Ltd.Zhejiang Second Pharma Co. Ltd. 6408.00 6408.00
Subtotal 262401403.46 24069153.81
Contract Ningbo Zhenhai Refining and Chemical 223396226.42 134718227.36
liabilities NHU Biotechnology Co. Ltd.(tax-inclusive) Zhejiang Deli Equipment Co. Ltd. 14700.89
Subtotal 223396226.42 134732928.25
Zhejiang Deli Equipment Co. Ltd. 3740.00 4190.00
Other payables Ningbo Zhenhai Refining and Chemical
1650.001650.00
NHU Biotechnology Co. Ltd.Subtotal 5390.00 5840.00
Total 485803019.88 158807922.06
XV. Commitments and Contingencies
1. Important commitments
Significant commitments existing at the balance sheet date
(1) Forward foreign exchange contracts
According to the ISDA 2002 MASTER AGREEMENT signed with Bank of China (Hong Kong) Limited the ISDA 2002
MASTER AGREEMENT signed with DBS Bank (China) Limited the Global Capital Markets Transactions and related transaction
application forms signed with HSBC Bank (China) Company Limited Hangzhou Branch the Zheshang Bank Customer Foreign
Exchange Trading Master Agreement signed with China Zheshang Bank Co. Ltd. Shanghai Branch and the NAFMII Master
Agreement and supplementary agreement (No. Y161136) signed with Bank of China Limited Zhejiang Branch as of December
31 2025 the Company's outstanding forward foreign exchange contracts that have not been settled are as follows:
Forms of foreign exchange
Currency Notional amount Agreed exchange rate Settlement date
settlement and sale
Foreign exchange settlement 10000000.00 7.1025 2026/1/8
Foreign exchange settlement 10000000.00 7.1025 2026/1/8
USD
Foreign exchange settlement 10000000.00 7.1025 2026/1/8
Foreign exchange settlement 10000000.00 7.1025 2026/1/8
2462025 Annual Report of Zhejiang NHU Co. Ltd.
Forms of foreign exchange
Currency Notional amount Agreed exchange rate Settlement date
settlement and sale
Foreign exchange settlement 10000000.00 7.0440 2026/1/20
Foreign exchange settlement 10000000.00 7.0430 2026/1/22
Foreign exchange settlement 10000000.00 7.0405 2026/1/27
Foreign exchange settlement 10000000.00 7.0400 2026/1/29
Foreign exchange settlement 5000000.00 7.0165 2026/2/10
Foreign exchange settlement 5000000.00 7.0000 2026/1/22
Foreign exchange settlement 5000000.00 6.9880 2026/2/25
Foreign exchange settlement 5000000.00 6.9785 2026/3/25
Foreign exchange settlement 10000000.00 6.9935 2026/2/12
Foreign exchange settlement 10000000.00 6.9893 2026/2/26
Foreign exchange settlement 10000000.00 6.9850 2026/3/5
Foreign exchange settlement 10000000.00 6.9800 2026/3/19
Foreign exchange settlement 10000000.00 6.9782 2026/3/26
Foreign exchange settlement 5000000.00 8.2387 2026/1/22
Foreign exchange settlement 5000000.00 8.2366 2026/2/12
EUR Foreign exchange settlement 5000000.00 8.2354 2026/2/26
Foreign exchange settlement 5000000.00 8.2338 2026/3/18
Foreign exchange settlement 5000000.00 8.2332 2026/3/26
(2) Issued letters of guarantee not yet expired
As of December 31 2025 the various unexpired letters of guarantee issued by the Company and its subsidiaries are as follows:
Letter of
Letter of
Issuing bank Applicant unit Currency guarantee Opening conditions
guarantee type
amount
Performance
Bank of China Limited Zhejiang NHU Co. Ltd. USD 16710.00 Use of bank credit facilities
guarantee
Performance
Bank of China Limited Zhejiang NHU Co. Ltd. USD 36540.00 Use of bank credit facilities
guarantee
Performance
Bank of China Limited Zhejiang NHU Co. Ltd. USD 6195.00 Use of bank credit facilities
guarantee
2472025 Annual Report of Zhejiang NHU Co. Ltd.
Letter of
Letter of
Issuing bank Applicant unit Currency guarantee Opening conditions
guarantee type
amount
China Construction Bank Shandong NHUAmino-acids Performance Margin deposit CNY
CNY 1004364.00
Corporation Co. Ltd. guarantee 1004364.00
(3) Issued letters of credit that have not yet expired
As of December 31 2025 the letters of credit issued by the Company and its subsidiaries that have not yet matured are as
follows:
Issuing bank Applicant unit Letter of credit balance Opening conditions
JPY180000000.00 Use of bank credit facilities
USD393604.20 Use of bank credit facilities
Bank of China Limited Xinchang USD513673.36 Use of bank credit facilities
Sub-Branch CNY100000000.00 Use of bank credit facilities
The Company
CNY100000000.00 Use of bank credit facilities
CNY50000000.00 Use of bank credit facilities
China Construction Bank Corporation
CNY100000000.00 Use of bank credit facilities
Xinchang Sub-branch
Bank Of Hangzhou CNY 50000000.00 Use of bank credit facilities
Zhejiang NHU
Bank of China Limited Shangyu Security deposit: RMB
Specialty Materials JPY6830000.00
Sub-Branch 370000.00
Co. Ltd.
(4) "Bill Pool" business
The Company and its subsidiaries including Shangyu NHU Bio-Chem Co. Ltd. Zhejiang NHU Pharmaceutical Co. Ltd.Zhejiang NHU Specialty Materials Co. Ltd. Shaoxing Yuchen New Materials Co. Ltd. Shandong NHU Pharmaceutical Co.Ltd. Shandong NHU Amino-acids Co. Ltd. Heilongjiang NHU Biotechnology Co. Ltd. Shandong NHU Fine Chemical Science
and Technology Co. Ltd. Heilongjiang Xinhao Thermal Power Co. Ltd. Xinchang NHU Vitamins Co. Ltd. Zhejiang VYS
Animal Nutrition and Health Co. Ltd. and NHU Import & Export Company Ltd. have signed and entered into the Bill Pool
Business Cooperation Agreement with China Zheshang Bank Co. Ltd. The Company uses asset pool pledges or bill pool pledges
as collateral and opens a bill pool margin account paying margin at a certain proportion. The specific amount of the margin has
not been agreed upon. As of December 31 2025 the balance of the Company's pledged bank acceptance bills was RMB
135353157.67 and RMB 38900815.38 was deposited as margin in the bill pool at China Zheshang Bank Co. Ltd.
2482025 Annual Report of Zhejiang NHU Co. Ltd.
(5) As of December 31 2025 there are no other commitments that should be disclosed by the Company.
2. Contingencies
(1) Even if the Company does not have important contingencies to be disclosed it shall also state so
There are no important contingencies that the Company needs to disclose.
3. Others
As of December 31 2025 there are no other contingencies that should be disclosed by the Company.XVI. Events after Balance Sheet Day
1. Profit distribution
The Board of Directors of the Company proposes: Using the existing total share capital after deducting the shares in the
repurchase special account as the base of 3070283398 shares [Note] distribute to all shareholders a cash dividend of RMB 8.00
for every 10 shares (tax-inclusive) issue 0 bonus shares (tax-inclusive) and not convert capital reserve into share capital.[Note] The Company’s total share capital is 3073421680 shares including 3138282 shares in the repurchase-dedicated
securities account. According to the “Rules on Share Repurchase of Listed Companies” shares in the special account for
repurchase of listed companies carry no right of profit distribution and conversion of capital reserve into share capital.If the Company’s total share capital changes due to the conversion of convertible bonds share repurchase exercise of equity
incentives refinancing and listing of new shares etc. before the implementation of the profit distribution proposal the total
distribution will be adjusted accordingly based on the same distribution ratio.This proposal is subject to review and approval by the General Meeting of Shareholders.
2. Progress of implementation of the employee stock ownership plan
Pursuant to proposals related to employee stock ownership plan including the Fifth Phase of Employee Stock Ownership Plan
(Draft) of Zhejiang NHU Co. Ltd. and Summary deliberated and approved by the 16th Meeting of the Ninth Session of the Board
of Directors and the 11th Meeting of the Ninth Session of the Board of Supervisors dated December 10 2025 and the Third
Extraordinary General Meeting of 2025 dated December 26 2025 the Company agreed to implement the fifth phase of employee
stock ownership plan.On January 26 2026 the Company received the Securities Transfer Registration Confirmation issued by the Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited and the 21454310 shares held in the Company's
repurchase-dedicated securities account were transferred on January 23 2026 via non-trading transfer to the "Zhejiang NHU Co.
2492025 Annual Report of Zhejiang NHU Co. Ltd.
Ltd. - Fifth Employee Stock Ownership Plan" dedicated securities account representing 0.6981% of the Company's share capital
at a transfer price of RMB 24.19 per share.As of now the Company's fifth employee stock ownership plan has completed its purchases. The lock-up period for the shares
obtained under the fifth employee stock ownership plan is 12 months calculated from the date the Company announces that the
last tranche of the target shares has been registered and transferred to this plan’s name i.e. January 27 2026 - January 26 2027.The term of the target shares obtained under this shareholding plan is 24 months calculated from the date the Company announces
that the registration and transfer of the last target share into the name of this plan.
3. Explanation of other events after the balance sheet date
Except for the matters described above as of the date these financial statements were authorized for issue the Company had no
other material events after the balance sheet date.XVII. Other Important Matters
1. Segment information
(1) Basis for determining reportable segments and accounting policies
1) Segment reporting
According to the Company's internal organizational structure management requirements and internal reporting system the
Company's operating business is divided into two reportable segments. These reporting segments are determined based on the
financial information required for the Company's day-to-day internal management. The Group's management regularly reviews the
operating results of these reportable segments to determine the allocation of resources to them and to assess their performance.The Company's reportable segments include:
* Pharmaceutical and chemical segment producing and selling nutritional products and aroma chemicals;
* Other segment production and sale of new materials others;
Segment reporting information is disclosed based on the accounting policies and measurement bases adopted by each segment
when reporting to management; these accounting policies and measurement bases are consistent with those used in the preparation
of the financial statements.
2502025 Annual Report of Zhejiang NHU Co. Ltd.
(2) Financial information of the reportable segments
Unit: RMBYuan
Pharmaceutical Inter-segment
Items Others Total
chemicals eliminations
Operating revenue 20759587241.63 2330132824.17 838358185.22 22251361880.58
Including: Revenue
arising from contracts 20756826194.27 2313269346.84 824903500.24 22245192040.87
with customers
Operating cost 11482278192.99 1661214472.55 832684675.65 12310807989.89
Total assets 42463859918.64 4352733168.26 1210143281.42 45606449805.48
Total Liabilities 12090304521.30 1820185990.99 1264956114.05 12645534398.24
2. Other
1) Plans related to the employee stock ownership plan
Pursuant to proposals related to employee stock ownership plan including the Fifth Phase of Employee Stock Ownership Plan
(Draft) of Zhejiang NHU Co. Ltd. and Summary deliberated and approved by the 16th Meeting of the Ninth Session of the Board
of Directors and the 11th Meeting of the Ninth Session of the Board of Supervisors dated December 10 2025 and the Third
Extraordinary General Meeting of 2025 dated December 26 2025 the Company agreed to implement the fifth phase of employee
stock ownership plan.As of December 31 2025 the Company's fifth employee stock ownership plan did not yet hold any company shares.XVIII. Notes on Main Items in Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMBYuan
Book balance at the beginning of the
Aging Closing book balance
period
Within 1 year (including 1 year) 1149760310.62 1531673396.24
Total 1149760310.62 1531673396.24
2512025 Annual Report of Zhejiang NHU Co. Ltd.
(2) Classification and disclosure by bad debt provision method
Unit: RMBYuan
Closing balance Opening balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categories Carrying Carrying
% to Rate of amount % to Rate ofAmount Amount Amount Amount amount
total provision total provision
Including:
Accounts
receivable
with
provision
for bad 1149760310.62 100.00% 57488015.53 5.00% 1092272295.09 1531673396.24 100.00% 76583669.81 5.00% 1455089726.43
debts
reserve
based on
portfolio
Including:
Total 1149760310.62 100.00% 57488015.53 5.00% 1092272295.09 1531673396.24 100.00% 76583669.81 5.00% 1455089726.43
Provision for bad debts by portfolio: 57488015.53
Unit: RMBYuan
Closing balance
Name
Book balance Bad-debt provision Rate of provision
Within 1 year 1149760310.62 57488015.53 5.00%
Total 1149760310.62 57488015.53
If the provision for bad debts on accounts receivable is based on the general model of expected credit losses:
□ Applicable□ Not applicable
(3) Provision recovery or reversal of bad debt reserve in current period
Provision for bad debts of this period:
Unit: RMBYuan
Changes in amount of the current period
Opening
Categories Recovery or Closing balancebalance Provision Write off Others
reversal
Provision for
bad debts by 76583669.81 19095654.28 57488015.53
portfolio
Total 76583669.81 19095654.28 57488015.53
2522025 Annual Report of Zhejiang NHU Co. Ltd.
(4) Details of the accounts receivable and contract assets in the top five of the ending balance grouped by
debtor
Unit: RMBYuan
Ending balance of allowance for
Proportion of total balance of
Ending balance of accounts bad debts on accounts receivable
Company name accounts receivable and contract
receivable and impairment provision for
assets at the end of the period
contract assets
Customer 1 742833041.18 64.61% 37141652.06
Customer 2 214834382.21 18.69% 10741719.11
Customer 3 38560156.61 3.35% 1928007.83
Customer 4 17164000.00 1.49% 858200.00
Customer 5 13914624.00 1.21% 695731.20
Total 1027306204.00 89.35% 51365310.20
2. Other receivables
Unit: RMBYuan
Items Closing balance Opening balance
Other receivables 476588831.47 1008085932.79
Total 476588831.47 1008085932.79
(1) Other receivables
1) Classification of other receivables according to the nature of payment
Unit: RMBYuan
Book balance at the beginning of the
Nature of payment Closing book balance
period
Interbank borrowings 448209083.34 995850000.00
Deposits and guarantee deposits 13272472.50 13368946.50
Refund of tax for export 30199388.70 41117094.74
Employee petty cash 5958784.23 5580822.60
Others 4567180.89 3670632.73
Total 502206909.66 1059587496.57
2) Disclosure by aging
Unit: RMBYuan
Book balance at the beginning of the
Aging Closing book balance
period
Within 1 year (including 1 year) 483399289.58 1044830990.72
1 to 2 years 4555904.23 1070952.85
2 to 3 years 566162.85 325560.47
2532025 Annual Report of Zhejiang NHU Co. Ltd.
Book balance at the beginning of the
Aging Closing book balance
period
Over 3 years 13685553.00 13359992.53
3 to 4 years 325560.47
Over 5 years 13359992.53 13359992.53
Total 502206909.66 1059587496.57
3) Classification and disclosure by bad debt provision method
Unit: RMBYuan
Closing balance Opening balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categories Carrying Carrying
% to Rate of
Amount Amount amount
% to Rate of
Amount Amount amount
total provision total provision
Including:
Provision
for bad
502206909.66100.00%25618078.195.00%476588831.471059587496.57100.00%51501563.785.00%1008085932.79
debts by
portfolio
Including:
Total 502206909.66 100.00% 25618078.19 5.00% 476588831.47 1059587496.57 100.00% 51501563.78 5.00% 1008085932.79
Provision for bad debts by portfolio: 25618078.19
Unit: RMBYuan
Closing balance
Name
Book balance Bad-debt provision Rate of provision
Provision for bad debts by
502206909.6625618078.195.10%
portfolio
Total 502206909.66 25618078.19
Description for basis of determining the combination:
Provision for bad debts under the general model of expected credit losses:
Unit: RMBYuan
First stage Second stage Third stage
Expected credit loss for Expected credit loss for
Bad-debt provision Expected credit losses the entire duration (no the entire duration Total
over the next 12
credit impairment (credit impairment has
months
occurred) occurred)
Balance as at January
50185694.80214190.571101678.4151501563.78
12025
The balance as of
January 1 2025 is in
the current period
-- Transferred to the -227795.21 227795.21
2542025 Annual Report of Zhejiang NHU Co. Ltd.
First stage Second stage Third stage
Expected credit loss for Expected credit loss for
Bad-debt provision Expected credit losses the entire duration (no the entire duration Total
over the next 12
credit impairment (credit impairment has
months
occurred) occurred)
second stage
-- Transferred to the
-113232.57113232.57
third stage
Accrual in the current
-26870723.03582427.64404809.80-25883485.59
period
Balance as at
23087176.56911180.851619720.7825618078.19
December 31 2025
Criteria for dividing each stage and the bad-debt reserves calculation and withdrawal proportion
Accounts with an aging period of up to one year are categorized as Stage I; accounts aged between one and two years fall under
Stage II; and accounts exceeding two years in age are designated as Stage III.Significant changes in the carrying amounts of items with material changes in the allowance for losses during the period
□ Applicable□ Not applicable
4) Details of the top five other receivables by period-end balance aggregated (grouped) by debtor
Unit: RMBYuan
Ratio in the total
Nature of the Ending balance of
Company name Closing balance Aging ending balance of
amounts bad debt provision
other receivables
Shandong NHU
Fine Chemical
Interbank
Science and 150109083.34 Within 1 year 29.89% 7505454.17
borrowings
Technology Co.Ltd.Xinchang NHU Interbank
125000000.00 Within 1 year 24.89% 6250000.00
Vitamins Co. Ltd. borrowings
Tianjin NHU
Materials Interbank
99900000.00 Within 1 year 19.89% 4995000.00
Technology Co. borrowings
Ltd.Shaoxing Nayan
Material Interbank
40000000.00 Within 1 year 7.96% 2000000.00
Technology Co. borrowings
Ltd.State
Administration of
Refund of tax for
Taxation (Export 30199388.70 Within 1 year 6.01% 301993.89
export
tax rebates
receivable)
Total 445208472.04 88.64% 21052448.06
2552025 Annual Report of Zhejiang NHU Co. Ltd.
3. Long-term equity investments
Unit: RMBYuan
Closing balance Opening balance
Items Depreciati Depreciati
Book balance on Carrying amount Book balance on Carrying amount
reserves reserves
Investments in
12054909150.1212054909150.1210822058350.1210822058350.12
subsidiaries
Investments in
associates and 761549857.60 761549857.60 666079397.87 666079397.87
joint ventures
Total 12816459007.72 12816459007.72 11488137747.99 11488137747.99
(1) Investment in subsidiaries
Unit: RMBYuan
Increase or decrease in the current period
Opening Closing
Opening balance Provision Closing balancebalance of balance of
Invested entity (Carrying Additional Investment for (Carryingimpairment
amount) Others
impairment
investment decrease impairment amount)provision provision
reserve
Xinchang NHU
Vitamins Co. 149407990.15 80000000.00 229407990.15
Ltd.Zhejiang NHU
Import & Export 13500000.00 13500000.00
Co. Ltd.Zhejiang VYS
Animal
5000000.005000000.00
Nutrition and
Health Co. Ltd.Shangyu NHU
Bio-Chem Co. 414100091.44 414100091.44
Ltd.NHU (Hong
Kong) Trading 16406160.00 16406160.00
Co. Ltd.Zhejiang NHU
Pharmaceutical 480000000.00 480000000.00
Co. Ltd.Zhejiang NHU
Specialty
554844108.53554844108.53
Materials Co.Ltd.Shandong NHU
Amino-acids 5800000000.00 5800000000.00
Co. Ltd.Shandong NHU
Holdings Co. 200000000.00 200000000.00
Ltd.
2562025 Annual Report of Zhejiang NHU Co. Ltd.
Increase or decrease in the current period
Opening Closing
Opening balance Provision Closing balancebalance of balance of
Invested entity (Carrying
impairment Additional Investment for
(Carrying
Others impairmentamount)
provision investment decrease impairment
amount)
provision
reserve
Heilongjiang
NHU
1900000000.00400000000.002300000000.00
Biotechnology
Co. Ltd.Shandong NHU
Pharmaceutical 586000000.00 586000000.00
Co. Ltd.Shandong NHU
Fine Chemical
Science and 590000000.00 590000000.00
Technology Co.Ltd.NHU Singapore
12800000.0042850800.0055650800.00
Pte. Ltd.Tianjin NHU
Materials
100000000.00210000000.00310000000.00
Technology Co.Ltd.Zhejiang NHU
Holdings Co. 500000000.00 500000000.00
Ltd.Total 10822058350.12 1232850800.00 12054909150.12
(2) Investment in associates and joint ventures
Unit: RMBYuan
Increase or decrease in the current period
Opening Closing
Opening balance balance of Recognized Other Declared payment of Provision for Closing balance balance ofInvested entity
(Carrying amount) impairment Additional Investment investment gain and comprehensive Other changes cash dividends or impairment Others (Carrying amount) impairment
provision investment decrease loss under equity income in equity profits reserve provision
method adjustments
I. Joint ventures
Ningbo Zhenhai
Refining and
Chemical NHU 358644929.90 59480427.82 418125357.72
Biotechnology
Co. Ltd.Subtotal 358644929.90 59480427.82 418125357.72
II. Associates
2572025 Annual Report of Zhejiang NHU Co. Ltd.
Increase or decrease in the current period
Opening Closing
Opening balance balance of Recognized Other Closing balance balance of
Invested entity Declared payment of Provision for
(Carrying amount) impairment Additional Investment investment gain and comprehensive Other changes (Carrying amount) impairment
cash dividends or impairment Others
provision investment decrease loss under equity income in equity provision
profits reserve
method adjustments
Zhejiang
Chunhui
Environmental 302422406.40 62291235.14 25920000.00 32921.05 338826562.59
Protection
Energy Co. Ltd.Anhui Yingna
Weixun
5012061.57-414124.284597937.29
Technology Co.Ltd.Subtotal 307434467.97 61550065.19 25920000.00 32921.05 343424499.88
Total 666079397.87 761549857.60
The recoverable amount is determined based on the net of fair value less disposal costs.□ Applicable□ Not applicable
The recoverable amount is determined based on the present value of estimated future cash flows.□ Applicable□ Not applicable
4. Operating revenue and operating cost
Unit: RMBYuan
Amount incurred in the current period Amount incurred in the previous period
Items
Revenue Cost Revenue Cost
Main business 4857607782.93 3651470969.51 4395233030.30 3384769776.39
Other business 28866943.20 18105473.54 48752637.47 37822133.10
Total 4886474726.13 3669576443.05 4443985667.77 3422591909.49
Including: with
customers
4883638070.473668588088.154440981266.263421227216.06
Revenue from
contracts
Breakdown of the operating revenue and operating cost:
Unit: RMBYuan
Classification of contracts Operating revenue Operating cost
Business Type
Including:
Nutrition 4731696580.42 3584969769.24
Others 151941490.05 83618318.91
Total 4883638070.47 3668588088.15
2582025 Annual Report of Zhejiang NHU Co. Ltd.
Classification of contracts Operating revenue Operating cost
Classified according to operation
regions
Including:
Domestic 2332531011.04 1826020047.32
Overseas 2551107059.43 1842568040.83
Total 4883638070.47 3668588088.15
Classification by timing of goods
transfer
Including:
Revenue recognized at a point in time 4883638070.47 3668588088.15
Total 4883638070.47 3668588088.15
Information related to the transaction price allocated to remaining performance obligations:
At the end of the reporting period the amount of revenue related to contracts that have been signed but whose performance
obligations have not yet been performed or have not yet been fully performed amounted to RMB 441782543.66 of which RMB
441782543.66 is expected to be recognized as revenue in 2026.
5、R&D expenses
Unit: RMBYuan
Amount of the corresponding period of
Items Amount of the current period
the previous year
Employee compensation 169422345.99 139541459.29
Depreciation expense and amortization of
21370189.3926652714.85
intangible assets
Outsourcing expenses 29049101.70 24841809.99
Direct input 29619201.79 23030174.05
Office expenses and travel expenses 5302344.65 4377704.22
Others 9753786.62 6097626.64
Total 264516970.14 224541489.04
6. Investment income
Unit: RMBYuan
Items Amount incurred in the current period Amount incurred in the previous period
Long-term equity investment income
1600000000.002050000000.00
calculated by cost method
Return on long-term equity investments
121357538.6834040307.12
measured by the equity method
Investment income from disposal of 28770508.00
2592025 Annual Report of Zhejiang NHU Co. Ltd.
Items Amount incurred in the current period Amount incurred in the previous period
long-term equity investment.Dividend income from investment in
other equity instruments during the 5292000.00
holding period
Interest income from interbank lending 26403753.44 61948639.60
Income of financial products and
6094166.26
structural deposits
Total 1759147458.38 2174759454.72
XIX. Supplementary Information
1. Statement of non-recurring gains and losses for the current period
□Applicable □ Not applicable
Unit: RMBYuan
Items Amount Remarks
Loss or gain from disposal of
-12973451.08
non-current assets
Government grants included in profit or
loss (excluding those closely related to
operating activities of the Company
satisfying government policies and 85292283.03
regulations enjoyed based on certain
standards and having a continuing
impact on the Company's profit or loss)
Gains or losses on changes in fair value
of financial assets and financial liabilities
held by non-financial enterprises and
gains or losses arising from disposal of
-18236228.19
financial assets and financial liabilities
excluding those arising from effective
hedging business related to the
Company's normal operating activities
Gains or losses on assets consigned to
the third party for investment or -
management
Other non-operating revenue or
-6124604.34
expenditures
Less: Enterprise income tax affected 16961183.62
Non-controlling interest affected
4736065.54
(after tax)
Total 26260750.26 --
Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:
□ Applicable□ Not applicable
The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteriafor Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss
2602025 Annual Report of Zhejiang NHU Co. Ltd.
□ Applicable□ Not applicable
2. Return on net assets and earnings per share
Earnings per share
Profit during the reporting Weighted average return on
period equity Basic earnings per share Diluted earnings per share
(yuan/share) (yuan/share)
Net profit attributable to
common shareholders of the 21.87% 2.21 2.21
Company
Net profit attributable to
common shareholders of the
21.79%2.202.20
Company after deducting
non-recurring gains and losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial reports disclosed pursuant to international
accounting standards and Chinese accounting standards at the same time
□Applicable□ Not applicable
(2) Differences in net profits and net assets in the financial reports disclosed pursuant to foreign
accounting standards and Chinese accounting standards at the same time
□Applicable□ Not applicable
(3) Explanation of reasons for differences in accounting data under domestic and foreign accounting
standards; if the data audited by an overseas audit firm is adjusted for differences the name of the
overseas firm shall be indicated.□Applicable□ Not applicable
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