2024 Annual Report of Zhejiang NHU Co. Ltd.
Zhejiang NHU Co. Ltd.2024 Annual Report
April 20242024 Annual Report of Zhejiang NHU Co. Ltd.Section I Important Notes Contents and Definitions
The Board of Directors and its members Board of Supervisors and its members
and senior executives 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 Zhang Lijin the head of accounting department hereby
declare that they guarantee the financial statements in this annual report are
authentic accurate and complete.Except for the following Directors the other Directors were present in person at
the meeting of the Board of Directors at which this Annual Report was considered.Name of Directors Position of Reason for not
Name of
not present in Directors not attending meetings
principal
person present in person in person
Zhou Guiyang Director Official business Shi Guanqun
Independent
Ji Jianyang Official business Shen Yuping
Director
The future plan and other forward-looking information disclosed in this annual
report shall not be regarded as a 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 of theCompany” under “Section III Management Discussion and Analysis” which
explicitly states the possible risks in business operation and countermeasures
thereon.
12024 Annual Report of Zhejiang NHU Co. Ltd.
Profit distribution proposal deliberated and approved by the meeting of the Board
of Directors is as follows: Based on the 3073421680 shares a cash dividend of
5.00 yuan (tax included) will be distributed to all shareholders for every 10 shares
and no bonus shares will be distributed and the capital reserve will not be
converted 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.
22024 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 and Analysis ..... 11
Section IV Corporate Governance .................... 43
Section V Environmental and Social Responsibilitie.. 61
Section VI Significant Events ...................... 69
Section VII Movements in Shares and Conditions of .. 79
Section VIII Preferred Shares ...................... 87
Section IX Bonds.................................... 88
Section X Financial Report ......................... 89
32024 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 accounting department;
II. The original auditor's 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 the
China Securities Regulatory Commission during the reporting period;
IV. Other documents for reference.
42024 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
CSRC Zhejiang Office Refers to China Securities Regulatory Commission Zhejiang Office
PPS Refers to Polyphenylene Sulfide
PPA Refers to Poly Phthalamide
VOC Refers to Volatile Organic Compound
HSE Refers to Healthy And Safe Environment
CNAS Refers to China National Accreditation Service For Conformity Assessment
DSC Refers to Differential Scanning Calorimetry
ARC Refers to Accelerating Ratecalori Meter
RC1e Refers to Reaction Calorimeter
Pd catalyzer Refers to Palladium Catalyst
IPDA Refers to Isophorone Diamine
NBC Refers to Azabicycles
CLA Refers to Karon anhydride
AM ester Refers to Methyl Methacrylate
ADI Refers to Aliphatic Isocyanates
HDI Refers to Hexamethylene Diisocyanate|
TNR Refers to Runaway temperature of normal reaction system
MP Refers to Methyl propionate
52024 Annual Report of Zhejiang NHU Co. Ltd.
Section II Company Profile and Key Financial Indicators
I. Company profile
Stock abbreviation NHU Stock code 002001
Stock Exchange Shenzhen Stock Exchange
Company Name in Chinese 浙江新和成股份有限公司
Company Abbreviation in新和成
Chinese
Company name in foreign
ZHEJIANG NHU CO. LTD.language (if any)
Company Abbreviation in
NHU
foreign language (if any)
Legal representative Hu Baifan
No.418 Xinchang Dadao West Road Qixing Sub-district Xinchang County Zhejiang
Registered address
Province China
Postal code of registered
312500
address
On May 28 2020 the Company's registered address was changed from No.4 Jiangbei
Historical changes of registered Road Yulin Sub-district Xinchang County Zhejiang Province China to No.418
address Xinchang Dadao West Road Qixing Sub-district Xinchang County Zhejiang
Province China
No.418 Xinchang Dadao West Road Qixing Sub-district Xinchang County Zhejiang
Office address
Province China
Postal code of office address 312500
Official 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 Qixing No.418 Xinchang Dadao West Road Qixing
Contact address Sub-district Xinchang County Zhejiang Sub-district Xinchang County Zhejiang
Province China Province China
Tel. +86 575 86017157 +86 575 86017157
Fax +86 575 86125377 +86 575 86125377
E-mail address sgq@cnhu.com 002001@cnhu.com
III. Information disclosure and location
Stock exchange website where the Company discloses the Shenzhen Stock Exchange: http://www.szse.cn
annual report
Securities Times Shanghai Securities News China
Medias and websites with which the Company discloses the Securities Journal
annual report Giant Tide Information Network: www.cninfo.com.cn
Site where the annual report was prepared and completed Securities Department of the Company
62024 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 holding shareholders (if any) None
V. Other relevant information
Accounting firm engaged by the Company
Name Pan-China Certified Public Accountants LLP
Resources Building 1366 Qianjiang Road Shangcheng
Office address
District Hangzhou 310020 China
Certified Public Accountants Teng Peibin Jian Yanhui
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 indicators
Whether the Company needs to perform retroactive adjustment or restatement on financial data of prior years
□Yes √ No
YoY
Items Year 2024 Year 2023 Year 2022
growth rate
Operating revenue (yuan) 21609592228.45 15116537003.30 42.95% 15933984403.41
Net profit attributable to
shareholders of listed 5868545988.62 2704238767.54 117.01% 3620280626.51
company (yuan)
Net profit attributable to
shareholders of listed
company after deducting 5828938494.33 2614210640.58 122.97% 3586882691.77
non-recurring profit or
loss (yuan)
Net cash flows from
7073064183.335119370863.3238.16%4361481083.61
operating activities (yuan)
Basic EPS (yuan/share) 1.91 0.87 119.54% 1.17
Diluted EPS (yuan/share) 1.91 0.87 119.54% 1.17
Increased by10.54
Weighted average ROE 21.78% 11.24% 16.08%
percentage points
Items Dec. 31 2024 Dec. 31 2023 After adjustment Dec. 31 2022
Total assets (yuan) 42989132470.97 39156246864.67 9.79% 38267645013.46
Net assets attributable to
shareholders of listed 29324997728.95 24804662320.99 18.22% 23574879326.24
company (yuan)
72024 Annual Report of Zhejiang NHU Co. Ltd.
The company's net profit before and after deducting non-recurring gains and losses in the last three fiscal years whichever is lower is
negative and the audit report of the latest year shows that the company's ability of continuing operation is uncertain.□ Yes √ No
The lower of the net profit before and after deducting extraordinary gains and losses is a negative value.□ 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 statements disclosed respectively under IFRS
Standards and Chinese accounting standards
□Applicable √ Not Applicable
The Company has no difference in net profit or net assets in financial statements disclosed respectively under IFRS Standards and
Chinese accounting standards.
2、Difference in net profit and net assets in financial statements disclosed respectively under overseas
accounting standards and Chinese accounting standards
□Applicable √ Not Applicable
The Company has no difference in net profit or net assets in financial statements disclosed respectively under overseas accounting
standards and Chinese accounting standards.VIII. Key financial indicators by quarter
Unit: RMB Yuan
Items First quarter Second quarter Third quarter Fourth quarter
Operating revenue 4498764263.04 5345947951.32 5937027231.87 5827852782.22
Net profit attributable
to shareholders of 869622923.96 1334738719.00 1785157145.05 1879027200.61
listed company
Net profit attributable
to shareholders of
listed company after 857468937.91 1299993529.79 1724718549.44 1946757477.19
deducting non-
recurring profit or loss
Net cash flows from
480895414.071657428645.282438406421.082496333702.90
operating activities
Is there any significant difference between the above financial indicators or their totals and the correspondent financial indicators
disclosed in quarterly or semi-annual reports
□Yes √ No
IX. Non-recurring profit or loss
√ Applicable □ Not Applicable
82024 Annual Report of Zhejiang NHU Co. Ltd.
Unit: RMB Yuan
Items Year 2024 Year 2023 Year 2022 Notes
Gains or losses on disposal
of non-current assets
19289871.705426533.21-74232517.88
including write-off of
provision for impairment
Government grants
included in profit or loss
(excluding those closely
related to operating
activities of the Company
satisfying government 71547646.34 63050565.94 175761119.94
policies and regulations
and continuously enjoyed
with certain quantity or
quota based on certain
standards)
Gains or losses on changes
in fair value of held-for-
trading financial assets and
held-for-trading financial
liabilities and investment
income from disposal of
held-for-trading financial -36923997.96 34458488.77 -86980602.84
assets and held-for-trading
financial liabilities
excluding those arising
from hedging business
related to operating
activities
Fees charged to non-
financial enterprises for
465887.82988193.62
fund occupancy included
in current profit or loss
Gains or losses on assets
consigned to the third party
808128.7212715401.9152749284.13
for investment or
management
Debt restructuring gains
-847442.05
and losses
Other non-operating
654343.784406027.432411616.08
revenue or expenditures
Other profit and loss items
that meet the definition of 9579239.88
non-recurring profit or loss
Less: Enterprise income
8827724.9929488260.0046826444.91
tax affected
Non-controlling
6940773.30159076.0751953.28
interest affected (after tax)
Total 39607494.29 90028126.96 33397934.74 --
Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:
□Applicable √ Not Applicable
92024 Annual Report of Zhejiang NHU Co. Ltd.
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 Criteria forPublic 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.
102024 Annual Report of Zhejiang NHU Co. Ltd.
Section III Management Discussion and Analysis
I. The industry in which the Company operates during the reporting period
Based on the fine chemical industry the Company takes “Chemical +” and “Bio +” as its core technology platform to produce various
functional chemicals around nutrition flavor and fragrance 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. The United Nations PRB and others predict that by 2050 the global
population will approach 10 billion.1Africa's population has exploded to 60% of the global population global life expectancy has
increased from 72.8 to 77.2 years and developed regions are facing a deepening of population aging.Vitamins and methionine are the representatives of the nutritional products market. Vitamins are trace organic substances essential to
humans and animals. The market demand mainly comes from the downstream sectors such as feed food medicine and pharmaceuticals.The overall demand grows at a slow but stable rate while supply remains highly concentrated and the market price has long-term
cyclical fluctuations. As the largest producer of vitamins China produced about 0.42 million tons of vitamins in 2024 accounting for
85.90% of the global production. Vitamin prices rebounded from the bottom range in 2024 and most products return to profitability.
The profitability of vitamin companies has improved significantly except for a few companies most companies' profits turned positive
and realized year-on-year growth. Overseas enterprises saw reduced output due to capital raw material supply strategic adjustments
and other factors—most notably the explosion at BASF’s German plant triggered a chain reaction.. These capacity adjustment further
concentrated the supply of vitamins to China such as vitamin K3 vitamin B6 vitamins A and E and other products.2
Methionine is the only sulfur-containingl amino acid among essential amino acids and is the first limiting amino acid in poultry high-
yield dairy cows and fish. The industrial production of methionine is mainly used as a feed additive which has two advantages:
economy and availability. 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 preliminary statistics of Boyar the global methionine
( (calculated as 99% purity liquid methionine × 0.8 the same below) capacity in 2024 was estimated at 2249000 tons a year-on-
year decrease of 4.6% and China's methionine capacity is 736000 tons a year-on-year decrease of 5.2%. Global methionine production
in 2024 increased year-on-year with domestic supply in China reaching 471000 tonss.In 2024 China exported 380000 tons a year-
on-year increase of 25.8% and imported 156000 tons a year-on-year decrease of 8.8%. In 2024 domestic production increased
significantly while imports decreased driven by the significant growth in exports the annual solid methionine prices are high and then
run in a narrow range of adjustment. Global demand for methionine in 2024 is about 1.7 million tons an increase of 6.3% year-on-
year. Domestic poultry farming maintain profitability overall leading to a slight increase in methionine demand for feed the domestic
demand reached about 450000 tons an increase of 4.7% year-on-year.3
Flavor and fragrance:
The flavor and fragrance industry is a complementary industry of the national economy and the independent high-level flavor and
fragrance industry is crucial to the independent high-level food tobacco and daily chemical industries. The sector encompasses
1 https://www.prb.org/articles/highlights-from-the-2023-world-population-data-sheet/
2 Boyar & Company Annual Analysis of Vitamins Market Report 2024
3 Boyar & Company Annual Analysis of Amino Acids Market Report 2024
112024 Annual Report of Zhejiang NHU Co. Ltd.
fragrances (synthetic and natura) and flavors (daily chemical fragrances food fragrances tobacco fragrances etc.) which are used inpersonal care household products food beverage and other daily life scenarios. According to the “14th Five-Year Plan for thedevelopment of the flavor and fragrance industry” published by the China Flavor and Fragrance and Cosmetic Industry Association it
is expected that by 2025 the main business income of China's flavor and fragrance industry will reach RMB 50 billion.At present China's flavor and fragrance has 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 2023 about one-third of China's flavors
and fragrances products were exported with approximately two-thirds of fragrance products shipped overseas key products such as
vanillin linalool maltol accounted for about 50% of the global supply.4
New polymer materials:
As a strategic and fundamental industry new polymer materials has become an important symbol for measuring the economic and
technological strength of a country or region. The “Guidelines under 14th Five-Year Plan and Vision for 2035” pointed out that it is
necessary to vigorously develop strategic emerging industries including new generation information technology biotechnology new
energy high-end equipment-all of which have substantial demand for new materials. New 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 artificial intelligence 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.5
Specialty engineering plastics primarily include four high-demand categories: high-performance polyamide polyphenylene sulfide
polyimide and polysulfone. At present more than ten kinds of PPA PPS PSU and other varieties with application value and
industrialization have been developed which are widely used in electronics automotive aerospace precision instruments and other
high-tech industries. Due to the higher price specialty engineering plastics accounted for about 1.8% of the plastics market by value.In
2022 the global market demand for these materials reached about 550000 tons with the market size of 8.5 billion U.S. dollars.
Geographically the consumption is mainly concentrated in China Europe the United States and Japan.In 2023 China's total consumption of six major specialty engineering plastics--PPS PSF PEEK LCP PPA and PI amounted to
approximately 174000 tons. China Chemical Information Centre 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 onsumption
will reach 246000 tons by 2028. This growth will be primarily driven by booming sectors such as new energy vehicles electronic
appliances and medical equipment..6
API industry:
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 global leader in both production volume and export capacity while achieving internationally advanced
production technologies.. China's chemical API industry has experienced a long period of rapid development stage the scale of
production once exceeding 3.5 million tons. However since 2018 production volumes of traditional bulk APIs began to decline and
the total output of APIs of the domestic regulated enterprises fell to 2.3037 million tons in 2018. Between 2019-2023 China's API
4 Xinhua reported December 2023 “Aroma industry floats all over the worldhttp://www.news.cn/fashion/20231215/b4fbb01c61c549cb9fdaf10c9fb21754/c.html
5 Development of new materials industry in Zhejiang Province “14th Five-Year Plan”
6https://mp.weixin.qq.com/s__biz=MjM5NDgxMTI0NA==&mid=2651074843&idx=1&sn=ef7960e3284552ed62dcd70454b5691d
&chksm=bca1356a8e993c40242f8e9bcbba3346e3b336c43069d3ad93eb6a6e76beb2b63e917c368ede#rd Status and Trends of
Specialty Engineering Plastics Development in China
122024 Annual Report of Zhejiang NHU Co. Ltd.
supply production has gradually recovered and rebounded to 3.949 million tons in 2023.II. 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 flavor and fragrance new
polymer materials and 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 “Bio +”
providing value-added services 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 health-focused and environmentally friendly products and creates sustainable
value for stakeholders. With leading technology scientific management and genuine service the Company has become one of the
major vitamin producers in the world one of the China’s top 100l fine chemical enterprises one of the top 10 Flavor and Fragrance
Producer in China's light of industry and a well-known special engineering plastics manufacturer.
1. Main products and applications
Nutrition: The current products mainly cover vitamins amino acids and pigments. ncluding 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 and nutrition supplements of food beverages and health food. The Company actively
implements the serialized and differentiated development of nutrition and continuously enhance the competitiveness of its products
by optimizing the production process and tackling key issues. expanding new product lines through serialization scaling and high-
value-added strategies to reinforce its industry leadership. In additionthe company fully integrates internal integration and external
cooperation opens up cooperation actively deploys cutting-edge biotechnology and builds the Company's “Bio+” platform.Flavor and fragrance: At present our main fragrance products include linalool citral and cis-3-hexenol series methyl
dihydrojasmonate raspberry ketone ligustral and menthol which are widely used in personal care cosmetic and food fields. From the
perspective of competitiveness and market share NHU is an important supplier in the global flavor and fragrance industry. The
Company continuously enriches the varieties of fragrance portfolio and develop bio-based products to meet evolving market demands.Polymer materials: The Company focuses on the development of high-performance polymers and key intermediates moderate develop
downstream applications of materials main products include polyphenyl sulfide (PPS) high temperature nylon (PPA) HDI IPDA
mainly serving automotive electronic environmental protection industrial applications and other fields. At present the Company has
built a PPS whole industrial chain from basic raw materials to polymers to modified processing to special fibers and become the only
domestic enterprise capable of stable production of fiber-grade injection molding-grade extrusion-grade coating-grade PPS while
progressing approvals for large-scale production of nylon new material industrial chain projects.APIs: The main products are concentrated in the series of vitamins and antibiotics including 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 adhered to the procurement principle of “fairness transparency and optimal cost” adopted the dual strategy
of long-term strategic cooperation and open competitive procurement deepened the market trend and market analysis and ensured the
stable supply of strategic materials. The company pays attention to source procurement minimize intermediaries reduce procurement
costs. It implements transparent procurement practices through an information-based system ensuring an open standardized and
efficient procurement process. Suppliers with good reputation and quality products are selected with quality assurance agreements to
ensure stable and reliable performance of purchased items. We will give priority to environmentally friendly energy-saving and
sustainable products and services encourage suppliers to achieve green production and operation and gradually promote carbon
132024 Annual Report of Zhejiang NHU Co. Ltd.
emission reduction and carbon neutrality plans. Select suppliers with a good sense of social responsibility pay attention to their social
responsibility performance establish long-term cooperative relations and achieve sustainable development of procurement activities.
(2) Production modelThe Company has always been adhering to the production strategy based on the principle of “production and sales coordinationefficient operation excellent quality and cost leadership”.Production plans are dynamically adjusted based on market demand to
achieve supply-demand balance. By innovating production management optimizing processes and enhancing lean operations the
company continuously improves efficiency while reducing energy consumption per unit of output. It promotes safe green standardized
and high-efficiency production to strengthen product competitiveness.
(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 sales. 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 services customers indirectly based on market and customer features. At the same time through measures
such as holding customer service months strengthening customer strategic cooperation establishing customer evaluation models and
optimizing customer classification management we will continue to expand market areas attract large-scale customers and enhance
brand influence.
3. Key performance drivers
The Company has modernized production bases in Zhejiang Xinchang Zhejiang Shangyu Shandong Weifang and Heilongjiang
Suihua adhering 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 +” to form NHU featured R&D models with
industrial clusters and technology and industry platforms interdependent. Not only can its products connect basic chemical raw
materials in the upstream but also extend to special intermediates nutrition flavor and fragrance new polymer materials and APIs in
the downstream. It has formed a comprehensive product network to enhances risk resilience and market responsiveness.During the reporting period the Company's original products were operated in fine detail and the development and construction of new
projects and new products were carried out in an orderly manner. In nutrition segment the capacity of methionine project was released
and the 300000 tons/year project has reached production with enhanced market competitiveness; the construction of 180000 tons/year
Liquid Methionine (Refractory) project a joint venture between the Company and China Petroleum & Chemical Corporation was
basically completed; 4000 tons/year Cystine was in stable production and operation and pilot test of Glufosinate Ammonium
Phosphonate project processed smooth. In the flavor and fragrance segment the series of aldehyde project SA project and the first
phase of the Fragrance Industrial Park project are progressing steadily. In new materials segment the development of PPS for new
applications went smoothly; Tianjin nylon new materials project continued to promote the approval of large-scale production; HA
project products have been produced and sold normally. In the API segment the integration projects of halothane and phytol are
progressing in an orderly manner. In the future we will upgrade our product structure according to the market demand and gradually
develop into a producer of antipyretic and analgesic drugs nutritional drugs and intermediates of specialty APIs.During the reporting period the release of new production capacity of methionine and other projects brought profit growth space for
the Company and at the same time affected by the recovery of the downstreamlivestock industry supply side of the other
manufacturers supply constraints and other factors the Company's nutrition segment of the main products market price repair. The
Company seized market opportunities in time went all out production and marketing linkage to expand the market and took multiple
measures to expand market share achieving year-on-year growth in both sales volume and prices for key nutraceutical products; In
142024 Annual Report of Zhejiang NHU Co. Ltd.
addition the Company through continuous innovation to reduce costs and increase efficiency optimize the production process resource
allocation energy consumption and so on to reasonably reduce the operating costs so as to achieve business performance improvement.During the reporting period the Company's main business and operating model remained unchanged.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 flavor and fragrance 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 has a large competitive
advantage in culture R&D management talent brand etc.
1. Corporate culture
The company adheres to the enterprise objective of “Creating wealth Elevating employees Benefiting society” core values of “newharmony union” business philosophy of “create wealth balanced and sustainable” the enterprise spirit of “realism innovation high-quality and efficiency” innovative management and continuous improvement of management ensure the steady development of the
enterprise.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. Led by the "teacher culture" the Company pursues high-quality and sustainable development creates spiritual and material
wealth provides a platform and opportunities for employees to develop and realize the value of their lives and contributes to the
innovative green and shared development of society.
2. R&D
The Company adheres to the research and development concept of “demand-oriented internal and external integration” and has
invested more than 5% of its operating income in research and development for many consecutive years. The Company has set up an
innovative R&D system ranging from basic research engineering development process optimization to product application
development and focuses on the development of common key and forward-looking technologies in the chemical industry to develop
and master a number of key technologies with strategic impact on economic development and promote industrial transformation and
upgrading. The Company cooperates closely with well-known research institutes and universities at home and abroad such as Zhejiang
University Chinese Academy of SciencesTianjin University Jiangnan University China Agricultural University Zhejiang University
of Technology and CysBio Biotechnology Co. LTD. organizing and utilizing global basic science research resources to jointly carry
out prospective and applied research in chemistry. As the core of enterprise technology innovation the research institute of the
Company has set up a biomedical laboratory supercritical reaction laboratory engineering equipment research center and other
laboratories equipped with a 600M ultra-low temperature probe nuclear magnetic resonance instrument and other world-class
advanced scientific research equipment master the supercritical reaction high vacuum distillation high pressure hydrogenation
continuous peroxide and continuous crystallization and other leading technologies at home and abroad. It has been rated as a national
enterprise technology center a national postdoctoral research workstation and a national model academician expert workstation.During the reporting period the project of “Development and Industrialization of Key Technology for Fresh Fragrance Series SpiceProducts” was awarded the First Prize of Technical Invention Award of China Light Industry Federation in 2024 “A RecombinantMicroorganism Its Preparation Method and Its Application in Producing Coenzyme Q10” and “A Preparation Method ofPolyphenylene Sulfide Resin and Polyphenylene Sulfide Resin Obtained by Preparation” were awarded the Excellence Prize of the
25th Chinese Patent Award and the project of “High-quality D L-Methionine Green Synthesis Key Technology Development andIndustrialization” project was selected as the first prize of Shandong Province Science and Technology Award.
152024 Annual Report of Zhejiang NHU Co. Ltd.
3. Production management
The Company aims at world-class manufacturing and takes the operation of quality assurance green low-carbon safety and
environmental protection systems as the gripping hand to support and guarantee the sustainable development. The Company has alwaysbeen adhering to the production strategy based on the principle of “production- sales coordination efficient operation excellent qualityand 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 oriented 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 improves the 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.It continuously upgrades equipment towards larger scale better airtightness greater continuity and higher level of automation aiming
to save energy and reduce emissions to improve productivity product quality intrinsic safety and cost reduction 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 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 adhered to the management concept of “standardized and efficient” the employment concept of “both virtueand talent people and posts matching” the guiding ideology of “creating a talent plateau stimulating organizational vitality andenhancing organizational performance” and has bulit a pioneering and innovative pragmatic and efficient talent team and a long-term
stable and excellent management team with a high sense of responsibility to promote the sustainable healthy and rapid development
of the Company. The Company continues to strengthen the construction of the talent supply chain constantly improve the talent trainingsystem strengthen the training of “management talents skilled talents international talents core technical talents and leadershiptalents” systematically train and reserve college students introduce various professional talents continue to promote the training of
reserve cadres such as the sailing class and the departure class and promote the cross-sequence rotation training of the font type.Promote the improvement of management and professional ability and build a balanced talent structure. During the reporting period
the Company was honored with the “HR Excellence Contribution Award” in East China for the year 2024 by Lie Pin.
6. Brand
The Company adheres to the “integrity-based” and has always adhered to serving customers and creating industry value with customers
as the goal pursued by enterprises over the years. Through technological innovation the Company continues to provide customers with
safe and high-quality products and efficient and satisfactory services. After years of development and accumulation the Company has
won many honorary titles in the global fine chemical industry such as one of China's top ten feed additive brands one of the country's
large vitamin feed additive enterprises and ranked among China's top 500 petroleum and chemical enterprises (comprehensive) and
China's top 100 basic chemical raw material manufacturing enterprises. Good market reputation has laid a solid foundation for the
162024 Annual Report of Zhejiang NHU Co. Ltd.
healthy and long-term development of the Company. In addition the Company has repeatedly won the top 30 best internal control in
Zhejiang Province the mainstream media listed companies “Best Investor relations Award” and other awards widely favored by the
market and investors.
7. Globalization
The Company has set up overseas subsidiaries in Hong Kong Singapore Germany Mexico Brazil Japan Vietnam 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-middle desk technical route
with new and successful characteristics and strengthens the awareness of data management and the management platform support
system by building the business data c and technology center so as to realize the smooth management process of the headquarters and
production base the same source of business data and supports the efficient business decision-making of enterprises. The Company
constantly promotes automation informatization and digitalization strives to create a new and characteristic intelligent manufacturing
system build smart factories promote intelligent operation management to achieve efficient flexible punctual lean production of
high-quality products better meet and serve customers and creat new advantages of industrial competition.
172024 Annual Report of Zhejiang NHU Co. Ltd.
IV. Main business analysis
1．Introduction
Please refer to item “II. The main business of the Company during the reporting period” under “Section III Management Discussionand Analysis” for details.
2．Revenue and cost
(1) Operating revenue
Unit: RMB Yuan
Year 2024 Year 2023
Items YoY growth rate
Amount % to total Amount % to total
Total 21609592228.45 100% 15116537003.30 100% 42.95%
By industry
Pharmaceutical
19841914590.6391.82%13797766058.0091.28%43.81%
chemicals
Others 1767677637.82 8.18% 1318770945.30 8.72% 34.04%
By produc
Nutrition 15054507596.05 69.67% 9866822612.52 65.27% 52.58%
Flavor and
3916222222.3218.12%3273948378.4521.66%19.62%
fragrance
New polymer
1676206286.327.76%1201509242.067.95%39.51%
materials
Others 962656123.76 4.45% 774256770.27 5.12% 24.33%
By region
Domestic sales 9556369337.03 44.22% 7318678736.77 48.42% 30.58%
Overseas sales 12053222891.42 55.78% 7797858266.53 51.58% 54.57%
By sales model
Direct sales 16478446865.46 76.26% 10976755778.18 72.61% 50.12%
Agent sales 5131145362.99 23.74% 4139781225.12 27.39% 23.95%
(2) Industries products and regions that account for more than 10% of the total operating revenue or
operating profi
√ Applicable □ Not Applicable
Unit: RMB Yuan
Growth
Growth rate of
Gross rate of Growth rate of gross
Items Operating revenue Operating cost operating
rate operating rate
revenue
cost
By industry
Pharmaceutical Increased by 9.90
19841914590.6311184158130.8443.63%43.81%22.31%
chemicals percentage points
By product
Increased by 13.27
Nutrition 15054507596.05 8554219175.76 43.18% 52.58% 23.69%
percentage points
Flavor and Increased by 1.33
3916222222.321886180859.3651.84%19.62%16.42%
fragrance percentage points
By region
Increased by 7.59
Domestic sales 9556369337.03 6114210456.71 36.02% 30.58% 16.73%
percentage points
Increased by 9.09
Overseas sales 12053222891.42 6467790189.93 46.34% 54.57% 32.17%
percentage points
182024 Annual Report of Zhejiang NHU Co. Ltd.
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 period shall be indicated.□ Applicable √ Not Applicable
(3) Whether the Company’s goods sales income is greater than service income
√ Yes □ No
By industry Items Unit Year 2024 Year 2023 YoY growth rate
Sales Ton 1001253.71 789182.83 26.87%
Pharmaceutical
Production Ton 1020130.42 789677.52 29.18%
chemicals
Stock Ton 87868.42 68991.71 27.36%
Sales Ton 42921.25 26584.02 61.46%
Others Production Ton 43432.63 29056.26 49.48%
Stock Ton 6776.91 6265.53 8.16%
Remarks on reason for relevant data with absolute growth rate over 30%
√ Applicable □ Not Applicable
The YoY growth rate increase in sales and production of pharmaceuticals and chemicals was mainly due to the combined effect of
increased production capacity of amino acid products and increased downstream demand for vitamins and methionine;
The YoY growth rate increase in sales and production of other categories primarily due to the rising market demand for new
material 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
Industry and Product Classification
Unit: RMB Yuan
Year 2024 Year 2023 YoY
By industry Items growth
Amount % to total Amount % to total rate
Chemical Cost of main
11126559379.6388.43%9113248621.4889.95%22.09%
industry operations
Cost of main
Others 1393190181.24 11.08% 921775209.45 9.10% 51.14%
operations
Unit: RMB Yuan
Year 2024 Year 2023 YoY
By product Items growth
Amount % to total Amount % to total rate
Cost of main
Nutrition 8496620424.57 67.53% 6885063292.46 67.96% 23.41%
operations
Flavor and Cost of main
1882262867.2914.96%1555075302.1715.35%21.04%
fragrance operations
New Cost of main
1308611295.4110.40%867516786.308.56%50.85%
materials operations
Cost of main
Others 832254973.60 6.62% 727368450.00 7.18% 14.42%
operations
192024 Annual Report of Zhejiang NHU Co. Ltd.
(6) Whether the consolidation scope has changed during the reporting period
√ Yes □ No
company identification Methods of equity acquisition Point of acquisition
Qionghai Bo'ao Lidu Real Estate Co. Ltd disposal June 21 2024
Tianjin NHU Materials Technology Co. Ltd. establish June 7 2024
Cong Ty Tnhh NHU Vietnam establish October 7 2024
NHU Life Science GmbH establish October 31 2024
NHU Japan 株式会社 establish November 8 2024
(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 top 5 customers 2444865041.88
Proportion to the total balance of annual sales amount (%) 11.31%
Proportion of related party transaction to the total balance of
0.00%
annual sales amount (%)
Top 5 customers
Proportion to the total balance
No. Customers Sales amount (yuan)
of sales amount (%)
1 Client A 1129324983.68 5.23%
2 Client B 476340403.76 2.20%
3 Client C 304413683.69 1.41%
4 Client D 271293966.95 1.25%
5 Client E 263492003.80 1.22%
Total -- 2444865041.88 11.31%
Remarks on other information of major customers
□ Applicable √ Not Applicable
Major suppliers
Total purchase amount (yuan) of top 5 suppliers 1417202071.19
Proportion to the total balance of annual purchase amount (%) 16.65%
Proportion of related party transaction to the total balance of
0.00%
annual purchase amount (%)
202024 Annual Report of Zhejiang NHU Co. Ltd.
Top 5 suppliers
Proportion to the total balance
No. Suppliers Purchase amount (yuan)
of purchase amount (%)
1 Supplier A 327590903.75 3.85%
2 Supplier B 315605329.42 3.71%
3 Supplier C 275415453.65 3.23%
4 Supplier D 255420196.80 3.00%
5 Supplier E 243170187.57 2.86%
Total -- 1417202071.19 16.65%
Remarks on other information of major suppliers
□ Applicable √ Not Applicable
3. Expenses
Unit: RMB Yuan
Remarks on significant
Items Year 2024 Year 2023 YoY growth rate
changes
This was mainly due to the
increase in personnel
Selling expenses 190298278.24 158316813.86 20.20% remuneration and sales
commissions during the
reporting period.Administrative
595894541.26551072291.998.13%
expenses
This was mainly due to the
decrease in foreign exchange
Financial expenses 178047841.65 65450512.95 172.03% gains as a result of exchange
rate fluctuations during the
reporting period.R&D expenses 1036161740.50 887801475.02 16.71%
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
The kettle reaction and
Conduct research on
pipeline reaction model Accumulate experience
some unit reaction
test platform is used in We have built kettle- and basic data for
operations and devices
the pilot test of MP and type tandem reaction workshop continuity
Research on involved in the
other projects and the platforms and tube- and automation level
continuous process company's existing
continuous extraction type reaction platforms enhancement improve
equipment technology products and products
and continuous that can be used for production efficiency
development and to be launched to
crystallization model various scales of model and enhance the
application research improve the maturity
test platform is applied test or medium-sized comprehensive
and production
in the commissioning test certificates. competitiveness of
efficiency of the unit
of NH and other products.reaction.projects.
212024 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
Through research on
strains and
Carry out research on Completion of process fermentation
We have further
the process of new research have technology of
strengthened the
Technology products such as A6 advanced the project fermentation products
development concept
development of and D ester and construction and part we form fermentation
of “Bio+” and enriched
fermentation products improve the readiness of the product has been products with
the product categories
of products for debugging and independent
of the bio-segment.industrialization. stabilization. intellectual property
rights and higher
quality standards.Granules for vitamin Project completion.products pressed Vitamin A dry cross- A set of debugging
Research on the
tablets drops linking process mass device suitable for the
development and Develop new products
emulsions gelatin and production debugging development of
application of new of nutrient preparations
other new dosage form is completed; sensory powder tablet drop
dosage form to improve the
products evaluation platform has and capsule type
formulations and company's nutritional
development; carry out begun to see results preparation products is
process technologies product range.the construction of service in Shangyu formed with a batch
for nutrient products
sensory evaluation Shandong base multi- output of about 50Kg.system. products.To study the
The project was
application effect of
successfully
newly developed
Development of high completed. Some of the
ethoxyquinoline-free
safety formulations of products have Improve the company's
vitamins and
vitamins carotenoids completed the technology in
carotenoids in
methionine and taurine application of large- formulation product
Research on the premixes and feeds and
and downstream scale production and development and
development and their bioavailability in
studies on the effects evaluation of product downstream
application of high- different animal fields;
and mechanisms of effects; the applications; continue
safety nutrient products to establish pilot feed
their application in construction of the to provide effective and
processing platforms
premixes feeds and platform has been sustainable solutions to
and breeding test bases
animals in vitro and in completed and normal our customers.for the evaluation of
vivo. operation and
the application effect of
application debugging
high safety vitamins
have been realized.and carotenoids.The project has been
successfully
completed. The new
vitamin products have
successfully completed
Vitamin series new and
the small test and Innovation of the
old products products
output a competitive company's existing
of the new and old Further vitamin series
Development of process route; the old vitamin production
series of vitamins the products to improve
Vitamin product products of process; research and
synthesis process the company's overall
technology technological development of the
innovation of the competitiveness.transformation of synthesis process for
Research and
vitamins have new vitamin products.development.successfully completed
the process innovation
research partially
realizing
industrialization.
222024 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
Designed with metal
catalysts synthesis and
catalytic mechanism
Research on the design
Key Technology synthesis and
Successful completion The company's new
Development and mechanism of catalytic Improve the
of the project. The and old products
Application action of metal technology level of Pd
high-performance Pd involve the precise
Demonstration for catalysts is the primary catalyst related
catalyst has been design synthesis
Equivalent Reduction task of products reduce cost
popularized and development and
of Pd Catalyst for industrialized and improve
applied in application of Pd
Vitamin and Antibiotic development and competitiveness.industrialization. catalysts.Synthesis application of high-
performance metal
catalysts industrialized
development and
application of
Chemical synthesis of Chemical synthesis of
Break the monopoly of
new AM ester products Continuously promote new AM ester products
AM ester synthesis foreign technology and
products and promote mold testing and scale- and advancement of
process development promote industrial
the scale-up design and up design. scale-up design and
upgrading.industrialization. industrialization.Realize the vitamin
green bio-
manufacturing and
Through multi-
then upgrade China's
parameter optimization
Construction of Vitamin B5 and B12 fermentation level to
of the fermentation
biologically have been produced Green synthesis of the world's leading
process the production
synthesized strains of and the fermentation existing vitamins by level and play a key
of engineered strains
typical B vitamins process of other B constructing high-level role for the company to
can be scaled up to
development and products is under strains and scaling up seize the high point of
accelerate the
industrialization of research and fermentation. international
replacement of
fermentation process optimization. technology and build a
chemical synthesis by
new pillar of green
biofermentation.environmental
protection industry
system in China.Break through the
Research on
technical barriers of
technology
Adiponitrile synthesis adiponitrile break the
development of
process innovation and Chemical synthesis and Continue to work on monopoly of foreign
adiponitrile products
industrialization industrialization of pilot test validation and companies and
and localization of
technology application adiponitrile. scale-up design. promote the
production technology
research development of
of adiponitrile
domestic related
products.industries.Further promote the Completed the research Completed the
research and on pharmaceutical development and
development of API grade products such as research of Enhance our position
products especially moxifloxacin pharmaceutical-grade in the API industry
High-specification API
vitamin API products hydrochloride vitamin pilot processes for especially in the high-
product development
to reduce production C more than 5 products specification vitamin
costs and improve the perfluorohexyloctane such as Vitamin C. The market.specifications of API perfluorobutylpentane processes have the
products. etc. of which value and feasibility of
232024 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
moxifloxacin scaling up and guided
hydrochloride has and optimized the
obtained the domestic establishment of the
registration number scaling-up process.and vitamin C has
obtained the CEP
certificate; and is
pushing forward the
research on six
pharmaceutical grade
products such as
vitamin B6 and D2.Provide a full range of
To establish relevant
Completion of CNAS analysis and testing
standards and testing
license renewal services for the
methods for synthetic Provide analytical
expansion of a number technological
intermediates; to carry technology services to
Research and of new technologies innovation of our
out research on the companies establish
Application of Fine and a number of new products and assist in
preparation separation analytical technology
Chemical Analysis and areas and successfully solving the key
and purification of development and
Testing Technology applied to key projects technical problems in
trace impurities and to assist in company
to meet the company's the process of
carry out structural product development.internal and external production and
determination of
customer needs. research and
impurities.development.Systematically study
the basic characteristics
We systematically
of the company's
study the influencing
products in the Through the innovation
factors of our products
separation process and development of the
in the separation
coupled with the use of Systematically separation process we
process optimize the
Development and a variety of separation conducts separation can realize the
best parameters of the
Application of Highly technologies optimize process studies of the improvement of the
separation process
Efficient Separation the process parameters company's existing and separation process and
realize the controllable
Processes and develop a highly in-development quality of the products
separation process and
Coupling Enhancement efficient and scientific products to support the to meet the needs of
quality of the products
Technology separation process to solution of practical different customers and
and solve the actual
achieve a high degree production problems. enhance the market
production problems
of cost and quality competitiveness of the
through production
control of the product products.debugging in the
and to solve practical
workshop.problems through the
workshop application.Establish a safety and
Improve the company's
environmental
The research effect on technology for safety
protection assessment
safety and and security in
Research on the laboratory equipped
environmental chemical production Enhance the essential
improvement of safety with calorimetric
protection has begun to and storage carry out safety level of
and environmental equipment such as
bear fruit and the TNR process optimization enterprises and
protection technology DSC ARC and RC1e
assessment method has for more dangerous effectively prevent
of fine chemical and analysts to carry
been improved and processes and accidents.industry out kinetic and
applied in a number of essentially reduce the
thermodynamic
projects. danger of reaction
analysis and research
processes.on the relevant
242024 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
materials and chemical
reaction processes and
to carry out the scaling-
up and debugging of
the corresponding
processes when
necessary.Further improve the
fine chemical
Combined with the
industrialization
characteristics of the
system establish a
project in-depth Maximize the use of
personalized module
understanding of the existing resources to
platform train talents
principles of reaction achieve efficient
Engineering process and establish relevant
separation simulation process research and Maximize
scale-up design and platforms and methods
material corrosion development on the industrialized resources
equipment technology in the process of
targeted solutions to basis of the platform. and improve industrial
research and solving the problems of
the problem and has Support the resolution efficiency.application process development
formed a preliminary of technical problems
and equipment
technical standards in the industrialization
amplification thus
which have been process.improving the
applied in a number of
efficiency of process
projects.development and
reducing process costs.Reduce the
By developing and Process development comprehensive cost of
optimizing the and research of many products of our
Process development
synthesis process of intermediate products company reduce the
and research has been
chemical intermediates as well as quality difficulty of new
completed for some of
the reaction selectivity research and process product development
R&D of process the products some of
is improved the control research on and enhance the
technology for fine which are moving
production cost is polymerization-grade competitiveness of our
chemical and material forward with
reduced the pollution and pharmaceutical- company in many
intermediates projectization. The
of the process route is grade products to form fields such as
remaining products are
lowered and the independent R&D pharmaceuticals
in the process
reliability of the technology. Conduct pesticides flavor and
development stage.process route is pilot production of at fragrance
enhanced. least four products. nutraceuticals and
polymers.Details of R&D personnel
Items Year 2024 Year 2023 Percentage of change
Number of R&D personnel
286728032.28%
(persons)
Increased by 1.37 percentage
% to total employees 25.22% 23.85%
points
Educational background structure
Technical secondary school
119135-11.85%
high school and below
Junior college 346 373 -7.24%
Bachelor 1410 1388 1.59%
252024 Annual Report of Zhejiang NHU Co. Ltd.
Items Year 2024 Year 2023 Percentage of change
Master 912 828 10.14%
Doctor 80 79 1.27%
Total 2867 2803 2.28%
Age structure
Below 30 years old 1315 1353 -2.81%
30-40 years old 1138 1045 8.90%
Over 40 years old 414 405 2.22%
Total 2867 2803 2.28%
Details of R&D input
Items Year 2024 Year 2023 Percentage of change
R&D input amount (yuan) 1036161740.50 887801475.02 16.71%
Decreased by 1.08 percentage
% to total operating revenue 4.79% 5.87%
points
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 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
Reason for significant changes in capitalization rate of R&D input and remarks on the reasonability
□ Applicable √ Not Applicable
5. Cash flows
Unit: RMB Yuan
Items Year 2024 Year 2023 YoY growth rate
Subtotal of cash inflows from
19830149069.0816264139030.7121.93%
operating activities
Subtotal of cash outflows from
12757084885.7511144768167.3914.47%
operating activities
Net cash flows from operating
7073064183.335119370863.3238.16%
activities
Subtotal of cash inflows from
345665250.33950343311.05-63.63%
investing activities
Subtotal of cash outflows from
4119527931.564828029671.75-14.67%
investing activities
Net cash flows from investing
-3773862681.23-3877686360.702.68%
activities
Subtotal of cash inflows from
4441283711.805996318716.61-25.93%
financing activities
Subtotal of cash outflows from
6704300710.588049329843.78-16.71%
financing activities
Net cash flows from financing
-2263016998.78-2053011127.17-10.23%
activities
Net increase of cash and cash
1074882251.17-705271516.56252.41%
equivalents
262024 Annual Report of Zhejiang NHU Co. Ltd.
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 was38.16%which was mainly due to the increase in sales revenue
during the reporting period which affected the increase in payment for goods.The YoY growth rate of Subtotal of cash inflows from investing activities was-63.63% which was mainly due to the decrease in
redemption of fund-raising financial products during the reporting period.The YoY growth rate of Subtotal of cash inflows from financing activities was-25.93% which was mainly due to the decrease in new
borrowings during the reporting period.The YoY growth rate of Net increase of cash and cash equivalents was252.41% which was mainly due to the increase in sales revenue
during the reporting period which affected the increase in payment for goods.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: RMB Yuan
Whether
% to total profit
Items Amount Reason for balance has
before tax
continuity
It was mainly due to the increase in
investment income from associates and
Investment income 77274370.60 1.11% No
gain on disposal of subsidiaries during
the reporting period.It was mainly due to the fair value
Gains on changes in
changes of forward foreign exchange
fair value (or less: -13600481.19 -0.20% No
settlement and sales during the
losses)
reporting period.It was mainly due to the increase in
revenue during the reporting period
Credit impairment loss
-55009881.32 -0.79% which led to higher accounts receivable No
(or less: losses)
and consequently an increase in credit
impairment losses.It was mainly attributable to the
impairment losses recognized during
Assets impairment
-81957927.36 -1.18% the reporting period resulting from No
loss(or less: losses)
provisions for inventory write-downs
and asset impairment.Non-operating revenue 5472411.83 0.08% It was mainly due to claims income. No
It was mainly due to asset disposal
Non-operating
34491018.05 0.50% losses and external donation expenses No
expenditures
during the reporting period.Gains on asset disposal It was mainly due to disposal of fixed
1393189.08 0.02% No
(or less: losses) assets.It was mainly due to government grants
Other income 268057018.67 3.86% No
received during the reporting period.
272024 Annual Report of Zhejiang NHU Co. Ltd.
VI. Assets and liabilities analysis
1. Significant changes in asset composition
Unit: RMB Yuan
Dec. 31 2024 Jan. 1 2024 Remark
s on
Items Percentage of change signific
Amount % to total Amount % to total ant
changes
Cash and Increased by 6.86
7936504805.6518.46%4543361146.9811.60%
bank balances percentage points
Accounts Increased by 2.16
3653676104.378.50%2483266952.886.34%
receivable percentage points
Decreased by 1.52
Inventories 4090096841.96 9.51% 4318878875.34 11.03%
percentage points
Long-term
Increased by 0.23
equity 865262148.36 2.01% 697145200.08 1.78%
percentage points
investments
Decreased by 4.85
Fixed assets 21915984823.43 50.98% 21860082637.13 55.83%
percentage points
Construction Decreased by 2.81
571610643.681.33%1621882507.564.14%
in progress percentage points
Right-of-use Increased by
13222869.090.03%6603631.560.02%
assets 0.01percentage points
Short-term Decreased by
1162512239.042.70%1235688062.903.16%
borrowings 0.46percentage points
Contract Decreased by 0.09
237013669.770.55%251008240.970.64%
liabilities percentage points
Long-term Decreased by 5.03
5327243721.2512.39%6821643194.5817.42%
borrowings percentage points
Lease
3584791.02 0.01% 5240136.43 0.01% stay level
liabilities
Proportion of foreign assets to total assets is comparatively high
□ Applicable √ Not Applicable
282024 Annual Report of Zhejiang NHU Co. Ltd.
2. Assets and liabilities at fair value
√ Applicable □ Not Applicable
Unit: RMB Yuan
Amou
Provisio nt
Accumulat
n for purcha
ed changes Amount sold
Gains on impairm sed Other
Opening in fair during the Closing
Items changes in ent made during change
balance value reporting balance
fair value in the the s
included in period
current reporti
equity
period ng
period
Financial assets
1. Held-for-
trading
financial
assets
145000000.00145000000.00
(derivative
financial
assets
excluded)
2. Derivative
financial 28056050.95 -27310234.61 745816.34
assets
Subtotal of
financial 173056050.95 -27310234.61 145000000.00 745816.34
assets
Financial
0.0011151258.4611151258.46
liabilities
Remarks on other changes
No
Whether the Company has significant changes in measurement attributes of main assets during the reporting period
□ Yes √ No
3. Restrictions on assets as of the end of the reporting period
Unit: RMB Yuan
Type of
Items Book balance Carrying amount Restrictions
restriction
30809898.16 30809898.16 pledged Banker's acceptance deposit
8800000.00 8800000.00 pledged Forex Option Margin
8183592.83 8183592.83 pledged Letter of Guarantee Deposit
3762850.00 3762850.00 pledged customs bond
Cash and bank 1458021.83 1458021.83 pledged Letter of Credit Deposit
balances 1263178.80 1263178.80 pledged Water deposit
875023.57 875023.57 pledged Safety Construction Bond
Project Engineering Labor
854699.63 854699.63 pledged
Salary Bond
22500.00 22500.00 pledged ETC Margin
Opening a pledge of banker's
Notes receivable 99511561.32 99511561.32 pledged
acceptances
292024 Annual Report of Zhejiang NHU Co. Ltd.
Type of
Items Book balance Carrying amount Restrictions
restriction
Receivables Opening a pledge of banker's
36038583.82 36038583.82 pledged
financing acceptances
Mortgage to a bank for the purpose
Fixed assets 93273121.97 75137838.29 mortgaged
of obtaining a loan
Mortgage to a bank for the purpose
Intangible assets 9864599.74 9864599.74 mortgaged
of obtaining a loan
Total 294717631.67 276582347.99
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)
1555952289.573377423672.72-53.93%
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 hedging purposes during the reporting period
√ Applicable □ Not Applicable
Unit: RMB 0000 yuan
Investment amount
Gains or at the end of the
Accumulated Amount
losses on Amount sold period as a
Types of Initial fair value purchased
Opening changes in during the End of period percentage of the
Derivatives Investment changes during the
amount fair value reporting amount company's net
Investments Amount recorded in reporting
for the period assets at the end of
equity period
period the reporting
period
Forward
195647.20195647.20-1438.240637907.70801353.3532201.551.09%
contracts
structured
forward 0 0 78.19 0 237352.60 188971.50 48381.10 1.64%
contract
Total 195647.20 195647.20 -1360.05 0 875260.30 990324.85 80582.65 2.73%
302024 Annual Report of Zhejiang NHU Co. Ltd.
The Company accounts for the hedging business conducted in accordance with
description of the accounting policies and specific
the relevant provisions of the Ministry of Finance's AS 22 - Recognition and
principles of accounting for hedging operations during
AS 23 - Transfer of Financial Assets and AS 37 - Presentation of Financial
the reporting period and whether there have been any
Instruments and its guidance. There were no significant changes in accounting
significant changes compared to the previous reporting
policies and specific principles of accounting compared with the previous
period
reporting period.In order to reduce the impact of exchange rate fluctuations on the Company's
operating results the Company carried out foreign exchange hedging business
in accordance with a certain percentage of its export business with business
Description of actual profit or loss for the reporting
varieties mainly including forward exchange settlement and other foreign
period
exchange derivative products all of which were within the expected scale of
sales business and the actual gain or loss on derivatives at the end of the
reporting period was -20.77million yuan.The Company carries out foreign exchange hedging business based on the
principle of exchange rate risk neutrality. By carrying out foreign exchange
Description of the hedging effect hedging business the Company reduces the impact of exchange rate
fluctuation on the Company's operation and effectively controls the operation
risk.Derivatives Investment Funding Self-funded.Risk analysis and description of control measures for In order to prevent exchange rate risk the Company and its subsidiaries have
derivative positions during the reporting period carried out derivative business and the Company and its subsidiaries have(including but not limited to market risk liquidity risk strictly implemented the “Foreign Exchange Hedging Business Managementcredit risk operational risk legal risk etc.) Regulations”.Changes in market prices or product fair values of
invested derivatives during the reporting period and the Tht floating loss on fair value of derivatives during the reporting period was
analysis of the fair value of derivatives should disclose 13.60 million Yuan. Changes in fair value are determined at the end of each
the specific methods used and the setting of relevant month based on quoted market prices from external financial institutions.assumptions and parameters
Litigation involved (if applicable) No
Date of disclosure of board announcement for approval of
April 23 2024
derivative investments (if any)The Company has formulated the “Management Measures for ForeignExchange Hedging Business” which sets out specific operating procedures for
conducting foreign exchange hedging business by strengthening internal
controls implementing risk prevention measures and improving management.The Company has analyzed the feasibility of its foreign exchange hedging
business and in general it is practical and feasible for it to carry out foreign
Special opinion of independent directors on the
exchange hedging which can effectively reduce the risk of exchange rate
company's derivatives investment and risk control
fluctuations and is conducive to stabilizing the profit level. The content and
consideration procedures of the matter are in compliance with the relevant
laws regulations regulatory documents and the Articles of Association and
do not constitute any damage to the interests of the Company and other
shareholders. We unanimously agree with the Company to carry out foreign
exchange hedging business this time.
2） Investments in derivatives for speculative purposes during the reporting period
□ Applicable √ Not Applicable
The Company had no derivative investments for speculative purposes during the reporting period.
5. Use of raised funds
√ Applicable □ Not Applicable
(1) Overall use of raised funds
√ Applicable □ Not Applicable
312024 Annual Report of Zhejiang NHU Co. Ltd.
Unit: RMB 0000 yuan
Proportion Total Proporti Raise
of funds amount of Cumulati on of d
raised proceeds ve total total Use and funds
Year Way Total Cumulative Total
Date of utilized at from amount of proceeds destinati being
of of Total funds Net proceeds Proceeds total amount unused
listing of the end of change of proceeds from on of idle
fund- fund- raised (1) Utilized for of proceeds procee
securities the use during from cumulati unused for
raising raising the Period utilized (2) ds
reporting the change of ve proceeds over
period (3) reporting use change two
= (2)/(1) period of use years
Permane
Private
nt
place
Year December 20 replenish
ment 486707.55 486707.55 16001.17 527880.92 108.46% 0 0 0.00% 0 0
2017 2017 ment of
of
working
shares
capital
Total -- -- 486707.55 486707.55 16001.17 527880.92 108.46% 0 0 0.00% 0 -- 0
Remarks on overall use of raised funds
The Company’s raised funds used in previous years amounted to 5118.80 million yuan the net amount of interest on cash in bank received in
previous years less handling charges amounted to 105.69million yuan gains on financial products and structured deposits received in previous years
amounted to 644.30 million yuan and the net expenditure on financial products and structured deposits purchased in previous years amounted to
145.00 million yuan; the raised funds actually used in 2024 amounted to 160.01 million yuan the net amount of interest on cash in bank received in
2024 less handling charges amounted to 4.12 million yuan gains on financial products and structured deposits received in 2024 amounted to 0.86
million yuan and the net recovery from financial products and structured deposits purchased in 2024 amounted to 145.00 million yuan;
the Company has written off the special account for fund-raising funds up to the The Company has transferred the total balance of the special
account for fund raising up to the date of cancellation of 343.23 million yuan (including the interest income generated from the special account) to
permanently replenish the liquidity.The Company has utilized a total of RMB 5278.81 million of the proceeds the net amount of interest received on bank deposits after deduction of
bank charges etc. was RMB 109.81 million the cumulative proceeds received from bank wealth management and structured deposits amounted to
RMB 645.15 million and the net expenditure on the purchase of wealth management and structured deposits amounted to RMB 0.00 million.As of December 31 2024 the balance of raised funds is 0 yuan.
322024 Annual Report of Zhejiang NHU Co. Ltd.
(2) Committed projects with raised funds
√ Applicable □ Not Applicable
Unit: RMB 0000 yuan
Commitm
Whether
ent to
the Cumulative Whether there
Date of investment Natur Amount Cumulative Progress on Date project Benefits Achieve
Financin project Total Total benefits has been a
listing projects e of invested amount investments reaches realized ment of
g has been committed adjusted realized by the significant
of and the during the invested as at as at end of intended during the projecte
Project changed investment investment end of the change in the
securitie investment proje reporting the end of period (3) = useable reporting d
Name (includin of proceeds s (1) reporting feasibility of the
s of over- ct period the period(2) (2)/(1) condition period benefits
g partial period project
raised
changes)
funds
Committed investment projects
Methionin
e project Methionine prod
with project with uctio
annual December annual n and December 31
No 486707.55 486707.55 16001.17 527880.92 108.46% 183982.47 371655.84 Yes No
output of 20 2017 output of const 2023
0.25 0.25 million ructi
million tons on
tons
Subtotal committed investment projects -- 486707.55 486707.55 16001.17 527880.92 -- -- 183982.47 371655.84 -- --
where the over-raised funds are invested
No No No No 0 0 0 0 0.00% 0 0 N/A
Repayment of bank loans (if any) -- 0 0 0 0 0.00% -- -- -- -- --
Supplementary working capital (if any) -- 0 0 0 0 -- -- -- -- --
Subtotal of over-provision of funds -- 0 0 0 0 -- -- 0 0 -- --
Subtotal -- 486707.55 486707.55 16001.17 527880.92 -- -- 183982.47 371655.84 -- --
As considered and approved at the Eighth Meeting of the Eighth Session of the Board of Directors and the Seventh Meeting of the Eighth Session of the
Conditions of and reasons for not meeting the planned schedule or Supervisory Committee of the Company on October 27 2021 the date for the project with an annual output of 250000 tons of methionine to reach the
estimated revenue (by specific project) intended state of use was adjusted from the originally planned December 2021 to June 2023 with the other contents of the project remaining unchanged.Main reason: affected by the macro-economy the project infrastructure construction progress is delayed the arrival time of some equipment and materials
332024 Annual Report of Zhejiang NHU Co. Ltd.
procurement is extended the equipment installation and debugging work is postponed the overall progress of the fund-raising investment project is slowed
down so the project is postponed compared with the original delivery date.Remarks on significant changes in feasibility of projects None.Amount purposes and progress of use of over-raised funds Not Applicable
Changes in implementation locations of investment projects with
Not Applicable
raised funds
Adjustment on the implementation method of investment projects
Not Applicable
with raised funds
Preliminary investment and replacement of investment projects Applicable
with raised funds Preliminary investment amounted to 36.06 million yuan and the replacement of raised funds is completed.Temporary replenishment of working capital with idle raised funds Not Applicable
Amount of and reasons for the balance of raised funds in the
Not Applicable
implementation of projects
Uses and whereabouts of unused raised funds Permanent replenishment of working capital
Problems or other situations in the use and disclosure of raised
None.funds
(3) Change of projects with raised funds
□Applicable √ Not Applicable
There is no change of projects with raised funds during the reporting period.
342024 Annual Report of Zhejiang NHU Co. Ltd.
VIII. Sale of major assets and equities
1. Sale of major assets
□ 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% (inclusive)
Unit: RMB 0000 yuan
Major Registere Operating Operating
Entities Categories Total assets Net assets Net profit
businesses d capital revenue profit
Shandong Production 1100
NHU Amino- Subsidiary and sales of million 1194132.57 1072873.51 648338.98 263688.97 226709.23
acids Co. Ltd. methionine yuan
Production
Shandong 500
and sales of
NHU Vitamins Subsidiary million 321156.01 212911.18 373926.13 201885.71 173507.94
feed
Co. Ltd. yuan
additives
Shandong
Production 590
NHU
Subsidiary and sales of million 497174.72 418860.86 394630.94 157487.48 136208.22
Pharmaceutica
fragrances yuan
l Co. Ltd.Remarks on major holding investees
Details of acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not Applicable
Method for acquisition and disposal of Effect on the overall production
Subsidiaries
subsidiaries during the reporting period operation and performance
Qionghai Bo'ao Lidu Real Estate Co. Ltd. diposal None.Tianjin NHU Materials Technology Co.investment establishment Initial no significant impact
Ltd.NHU Life Science GmbH investment establishment Initial no significant impact
Cong Ty Tnhh NHU Vietnam investment establishment Initial no significant impact
NHU JAPAN CO. LTD. investment establishment Initial no significant impact
Description of major holding and participating companies
□ Applicable √ Not Applicable
X. Structured entities controlled by the Company
□ Applicable √ Not Applicable
352024 Annual Report of Zhejiang NHU Co. Ltd.
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
main channel of “Chemical +” and “Bio +” improve the ability of applied research and application services focus on the business of
nutrition flavor and fragrance new materials and APIs adhere to innovation-driven development of various functional chemicals and
strengthen the construction of technology and industrial platforms.Promote the introduction and cooperation of advanced equipment
relying on the four modern production bases of Xinchang Zhejiang Shangyu Shandong Weifang Heilongjiang Suihua. to realize the
extension of the industrial chain and promote the sustainable and high-quality development of the Company. At the same time the
Company actively monitors and cultivates functional chemical opportunities related to strategic emerging industries such as plant
protection industry new energy industry energy conservation and environmental protection industry and information industry.It will continue to expand strengthen and specialize in the nutrition business. On the basis of integration and market coordination we
will implement lean operation and continuously improve the comprehensive competitiveness of existing products; At the same time
we will rapidly develop strategic products ensure the implementation of key projects constantly enrich product categories and
improve the comprehensive competitiveness of products; continue to deepen the global marketing network layout improve product
application service capabilities.It will develop wider and deeper in flavor and fragrance business. With the guiding principle of “customer-centred innovation-drivenbigger stronger deeper and better flavours and fragrances series products expanding the application of functional chemicals andenhancing the creation of product value” we will gradually diversify from the current product structure mainly based on citral series
linalool series and leaf alcohol series and promote the landing of new projects constantly introduce integrated serialized and
coordinated new flavor varieties achieve the functionalization and differentiation of products and continue to improve the core
competitiveness of products through internal and external integration technological innovation and research and development and
lean management.It will continue its development in new material business. Guided by cost leadership the Company adhere to integration and
serialization development ideas. By integratinf resources and fostering open cooperation we will focus on polymer and key
intermediates striving to develop large-scale products successfully while synergistically expanding downstream applications. Based
on “Chemical + Bio +” we aim to eatablish the new material industry into an important pillar industry of the Company positioning
ourselves as a rising forcce in the new material industry.It will focus on making more special and refined APIs business. With the guiding ideology of “taking innovative technology andinnovative service as the center taking big products as the guide differentiated development and making special and fine” the
Company will take advantage of the existing industrial supporting advantages integrate the Company's resources plan to build a
specialized production base intensify the research and application of new products new technologies and new equipment in the field
of APIs achieve differentiated development and actively promote the core competitiveness of existing products and the expansion of
emerging markets.
2. Business plan of the CompanyIn 2025 the Company has clearly defined the management guiding principle of “accelerating overseas expansion enhancing innovation
362024 Annual Report of Zhejiang NHU Co. Ltd.for development upgrading capability and management and preventing risks through prudent operation”. The Company will adhere
to the main course of the “Chemical +” and “Bio +” strategy anchor the goal of “World NHU” take accelerating going abroad and
enhancing innovation as the main line of work and strengthen professional ability and basic management as the important support
and focus on the construction of strategic projects. Taking accelerating overseas expansion and enhancing innovation as the primary
tasks strengthening professional capacity and basic management as the important support we will focus on promoting the constructionof strategic projects enhancing synergistic capacity and preventing business risks striving to succussfully conclude the “14th Five-Year Plan” and to lay a solid foundation for a good start of the 15th Five-Year Plan. We will focus on the following aspects:
(1) Planning and strengthening strategic leadership. Based on our own strengths we will analyze the market and industry trends in
depth and formulate a realistic and forward-looking strategy. Reasonable allocation of resources to ensure the steady progress ofstrategic projects. First refining the strategic planning planning the development blueprint. Summarize the experience of the “14thFive-Year Plan” strategy review scientifically formulate the “15th Five-Year Plan” strategic planning. Improve the strategic
management mechanism to promote the strategy to the ground. Secondly we should strengthen project management and control and
aim for “production standard efficiency and sale targets”to be achieved.
(2) Focusing on synergy and accelerating market expansion. Taking sales as the driver and customers as the center we will develop
the market and meet customers' needs as the shared goals of the whole company; through establishing and improving the synergy
mechanism clarifying the responsibilities of each department and the collaboration process strengthening internal communication and
exchange and forming synergy. First we should innovate marketing strategies to stimulate market increment. According to the changes
in the market situation scientifically formulate sales strategies. Grasp the market opportunities accelerate the speed of new product
market promotion enhance the “four new” market development efficiency. Second we should strengthen sales support help market
development. Pay attention to the dynamics of international trade policy and flexibly adjust the market strategy. Production supply
marketing and research should form a synergy to realize the overall improvement of product cost quality and service elements.
(3) Accelerating overseas expansion and deepen the international layout. Open up the mind benchmark the advanced accelerate the
global layout. First we should broaden international business and optimize global resource allocation strengthen the localized
operation and service capacity to ensure that the Company moves forward steadily in the internationalization process. Actively layout
overseas subsidiaries deepen localized services and optimize service quality. Utilize existing overseas R&D institutions to integrate
innovation resources. Secondly we should improve internationalization management and enhance global operation efficiency. Make a
good reserve of internationalized talents and strengthen internationalized talent cultivation and cross-cultural training.
(4) Innovation-driven accumulating development momentum. Innovation is the fundamental driving force for the development of
NHU. We should grasp the opportunities for innovation in artificial intelligence biotechnology and green chemistry increase
investment in R&D and enhance the effectiveness of R&D. We will continue to invest in R&D and improve the effectiveness of R&D.First we should anchor demand-oriented refine and deepen both new and old products. Combine market demand and resource
advantages scientifically select the direction of R&D and accelerate the landing and industrialization of new products. Breakthrough
core technology optimize the process enhance the level of automation expand product applications and improve the competitiveness
of existing products. Secondly we should practice inward and outward cooperation and continuously improve the innovation ability.Strengthen the platform build a technology matrix break through key technologies improve standardization and enhance technical
372024 Annual Report of Zhejiang NHU Co. Ltd.
services. Deepen the inward linkage synergize strengthen resource sharing and information linkage promote the integration of
technology and equipment R&D and market collaboration. Open cooperation docking universities research institutions and leading
enterprises introducing experts and technologies laying out cutting-edge and basic research and seizing subversive technology
opportunities.
(5) Enhancing professionalism and empowering efficient management. Adhere to the problem-oriented approach face up to the gap
between the management level and professional ability and the requirements of world-class enterprises and internationalization adhere
to the advanced benchmarking and continuous learning and build a talent highland through job training and practical experience
accumulation. First we should improve the management system and enhance the management efficiency. Optimize the intelligent
manufacturing system. Strengthen quality and energy management and improve operational efficiency. Improve the system of
promoting equipment integrity. Improve the Company's market value management mechanism. Secondly we should implement the
capacity enhancement specialization and build a professional talent team. Improve the training system accelerate the introduction of
shortage talents and optimize the performance evaluation mechanism. Third we should implement cultural concepts and play the role
of soft power. Solidify management experience strengthen employee psychological care and build harmonious labor relations.
(6) Stable operation building a solid foundation for development. We will examine risks with a global mindset strengthen internal
control improve the early warning mechanism and enhance the ability to respond to risks so as to safeguard the long-term and stable
development of the enterprise. First we need to guard the safety and environmental bottom line red line. Improve the safety
management system enhance environmental protection standards and ensure sustainable development. Second we should promote
the deep integration of industry and finance. Improve credit management prevent financial risks optimize the control of overseas
funds and ensure the sound operation of the enterprise. Third strengthen legal compliance management. Strengthen legal risk
prevention and control enhance compliance management of overseas business and improve the trade secret protection system.
3. Possible risks
(1) Macroeconomic risks
The global economy is facing numerous uncertainties due to international trade frictions and possible intensification of geopolitical
conflicts. The Company will accelerate the pace of globalization speed up the global strategic layout strengthen the localized operation
and service capabilities to ensure the Company's steady progress in the internationalization process. Continuously improve the
construction of globalized innovation sales and information centers and establish diversified innovation chains supply chains and
customer bases so as to promote the Company's steady development.
(2) Industry and market competition risks
The Company is facing peer competition in both domestic and international markets. The development of new technologies by its
competitors will not only impact the market but also challenge the Company's market position in the industry. In the future the
Company will continuously enhance its R&D and innovation capabilities and improve its competitiveness in the industry.
(3) Raw material price fluctuation risk
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 materials 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 partnerships with suppliers and
382024 Annual Report of Zhejiang NHU Co. Ltd.
improving the utilization rate of raw materials.
(4) Exchange rate and trade risks
The Company provides products and services to customers in more than 100 countries and regions around the world. At present due
to the increased uncertainty of global geopolitical risks political risks trade obstacles and exchange rate fluctuations international
political and economic instability will have a certain impact on the Company's sales revenue and profitability. In the future the
Company will take targeted measures to actively respond to changes in the international market strive to stabilize its international
market position and actively explore new economic growth points to maintain the steady growth of the Company's performance.
(5) Environmental protection policies changing risk
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 and explore more environmentally friendly
ways of production to achieve sustainable development.XII. Researches communications and interviews received by the Company during the
reporting period
√ Applicable □ Not Applicable
Major contents of
Index for basic
Date of Reception site Way of Type of visitor Visitors conversation and information of the
reception reception information
investigation
provided
Please refer to the
Network Investor Relations“Investor Introduce the Activities RecordRelations platform operating Sheet ofApril 30
April 30 2024 Interactive online Others Investors who attended the Company's online conditions of the 2024 which wasPlatform”of annual performance presentation of 2023 Company and published on the
Panorama communicat answer questions website
Network ion from investors http://irm.cninfo.com.c
n/ssessgs/S002001 for
details.
1 Caitong Fund (Zhang Yulong); 2 Boyan
Investment (Xiong Wenshuo); 3 Caitong Securities
(Guo Qikun); 4 Caitong Chemical (Mei Yuxin); 5
Truvalue Asset Management(Liu Di); 6 Dacheng
Fund (Zhao Peng); 7 Dacheng Fund (Duan Yifan);
8 Topsperity Securities (Xu Lei); 9 Northeast
Chemical (Wu Hao); 10 Fidelity Funds (Li
Ruipeng); 11 Fullgoal Fund (Wang Huanji); 12
Fullgoal Fund (Shen Heng); 13 Everbright
Please refer to the
Chemical (Cai Jiahao); 14 GF Securities Asset
Investor Relations
Management (Sun Guomeng); 15 Guodu
Introduce the Activities Record
Securities(Yu Weikang); 16 Franklin Templeton
operating Sheet of May 15
Meeting room Sealand(Zhang Rui); 17 Guohai Chemical (Chen
May 15 2024 Field conditions of the 2024 which was of the Institution Yun); 18 Guolian Chemical (Shen Qihao); 19
research Company and published on the
company Guotai Junan (Zhou Zhipeng); 20 UBS SDIC
answer questions website
Fund(Zhou Sijie); 21 Guoxin Investment (Li
from investors http://irm.cninfo.com.c
Mengru); 22 Fruity Investment (Cai Honghui); 23
n/ssessgs/S002001 for
Haitong Chemical; 24 Hongshang Asset (Sha
details.Zhengjiang); 25 Huaan Chemical (Liu Tianqi); 26
Huafu Fund (Deng Xianbo); 27 Huatai Securities
(Zhuang Tingzhou); 28 China Asset Managemen
(Zhou Tianxiang); 29 HSBC Qianhai (Ruyi); 30
Taiping Fund (Xia Wenqi); 31 Greenwoods Asset
(Jiang Wenchao); 32 Minsheng Chemical (Zeng
Jiachen); 33 Morgan Stanley (Sun Renjie); 34
Nanhua Fund (Liu Kaixing); 35 Origin Asset
(Zhang Yupeng); 36Foresight Foundation (Cui
392024 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of
Index for basic
Date of Reception site Way of Type of visitor Visitors conversation and information of the
reception reception information
investigation
provided
Wenqi); 37 Shenwan Hongyuan (Shao Jingyu); 38
Shenwan Pharmaceuticals (Zhang Jinghuan); 39
Western Leadbank Fund (Chen Yu); 40 Southwest
Securities (Li Genlin); 41 Aegon-industrial Fund
(Xia Siting) ); 42 Xingyin Fund (Shi Liang); 43
CITIC Securities Chemical (Liu Menglan); 44
Nomura Orient International Asset Management
(Wu Gangxiang); 45 Great Wall Securities (Xiao
Yaping); 46 Great Wall Securities (Wang Tong);
47 Great Wall Securities(Wei Miao); 48 Zheshang
Securities (Li Hui); 49 CICC (Jia Xiongwei); 50
CICC (Hou Yilin); 51 Lombarda China Fund (Xi
Rongxue ); 52 Zhongtai Securities (Nie Lei); 53
Csc Financial (Tao Aipu); 54 CITIC Energy (Liu
Chang); 55 BOC Chemical (Fan Qiyan); 56
Rosefinch Fund (Zhang Xuan); 57 Rosefinch Fund
(Liu Congcong); 58 Tong Heng Capital (Hu
Jiawei); 59 Eco Assett(Zhang Xinbin); 60 Jingzhi
Asset (Huang Dengfeng); 61 China Universal
Asset (Liu Gaoxiao); 62 Individual shareholders
etc.
1 Shanghai Shifeng Asset; 2 Shanghai MegaTrust
Investment; 3 Orient Fund; 4 Donghai Fund; 5
Donghai Securities Asset; 6 China Re Assets; 7
Zhonggeng Fund; 8 Zhonghai Fund; 9 BOC
International Asset Management; 10 BOCI Fund;
11 BOCOM Schroder; 12 Kingsun Investment;
13 Everbright Asset 14 Aegon-industrial Fund; 15
Aegon-industrial Fund; 16 Xianhe Management;
17 ABC-CA Fund; 18 Kaifeng Investment; 19 Please refer to the
China Asset; 20 Fortune Sg Fund ; 21 Huafu Investor Relations
Fund; 22 Huatai Baoxing Fund; 23 Huatai Introduce the Activities Record
Insurance Group; 24 HNG Trust; 25 China operating Sheet of May 29
Kempinski
May 29 2024 Field Institution Dragon Securities; 26 Bosera Asset; 27 Harvest conditions of the 2024 which was Hotel
research Fund; 28 Guosen Securities; 29 Guotai Junan Company and published on the
Shanghai
Asset Management; 30 Guotai Fund; 31 Franklin answer questions website
Templeton Sealand Fund; 32 Winsure Investment from investors http://irm.cninfo.com.c
Center; 33 Taiping Pension; 34 Taiping Fund; 35 n/ssessgs/S002001 for
Taiping Asset; 36 Guanyuan Asset; 37 Fuanda details.Fund; 38 ICBC-AXA Asset; 39 GF Fund; 40
CCB Life Insurance Asset Management; 41 CCB
Principal Asset Management; 42 Topsperity Fund;
43 Loyal Valley Capital; 44 Minsheng Securities
Asset Management 45 China Universal Asset ; 46
Bokeland Asset; 47 Zheshang Fund; 48 Western
Leadbank Fund; 49 JPMorgan Asset ; 50
Southern Asset; 51 Silver Leaf Investment
1 UNICHEM (CHINA) LIMITED
(Shen Qi Hao); 2 Guotai Junan Securities Asset
Management (Feng Zili); 3 Rosefinch Fund
(Zhang Xuan Liu Cong Cong); 4 Huafu Fund
Please refer to the
(Deng Xianbo); 5 Morgan Stanley Fund (Sun
Investor Relations
Renjie); 6 AIA (Tian Bei); 7 Industrial Securities Introduce the
Activities Record
Mandarin Assets (Sun Peng); 8 Hony Horizon Fund (Fan operating
Sheet of July 18 2024
July 18 2024 Oriental Field Institution Ke); 9 Aviva-cofco Life Insurance(Wang Jiahui); conditions of the which was published
Pudong research 10 Hua'an Fund (Jiang Qiu); 11 HFT Fund (Zong Company and
on the website
Shanghai Jingzhen); 12 First State Cinda Fund (Lu Yikai); answer questions
http://irm.cninfo.com.c
13 Heng Yue Fund (Yang Yulu); 14 GF Securities from investors
n/ssessgs/S002001 for
Asset (Sun Guomeng); 15 China Asset (Zhou
details.Tianling Zhang Jun Cao Yati Li Jiajia); 16 Chang
Xin Asse (Huang Xiangnan and Huang Zhenhua);
17 Maxwealth Fund (Lin Weihao); 18 Springs
Capital (Gu Yigong)
1 AEGON-INDUSTRIAL Fund (Xia Siting); 2
Fullgoal Fund (Shen Heng); 3 Universal Asset
Please refer to the
Management (Liu Gaoxiao); 4 Guotai Asset (Qian
Investor Relations
Xiaojie); 5 SWS MU Fund (Zhou Xiaobo Ji
Introduce the Activities Record
Peng); 6 JPMorgan Asset (Ni Qunsheng); 7
operating Sheet of August 26-27
August 26 Harvest Fund (Tang Shuting Yan Jianlei); 8
Grand Hyatt Field Institution conditions of the 2024 which was Penghua Fund (Su Dong); 9 China Merchants
2024 Shanghai research Company and published on the
Fund (Zhao Zongyuan Hu Ang); 10 Yinhua Fund
answer questions website
(Wu Ying Wang Jian); 11 Chongyang Investment
from investors http://irm.cninfo.com.c
(He Jianqing); 12 Zheshang Asset Management
n/ssessgs/S002001 for
(Wang Yuan); 13 BCM Fund (Zhang Mingxiao);
details.
14 Western Leadbank Fund (Chen Yu); 15 Mingyu
Asset (Wang Youhong); 16 HSBC Jintrust Fund
402024 Annual Report of Zhejiang NHU Co. Ltd.
Major contents of
Index for basic
Date of Reception site Way of Type of visitor Visitors conversation and information of the
reception reception information
investigation
provided
(Ye Fan); 17 Fortune Sg Fund (Guo Zhutong); 18
Maxwealth Fund (Lin Weihao); 19 CIB Wealth
Management (Chen Yalong); 20 Changjiang
Pension (Ma Rui); 21 CITIC Asset Management
(Chen Han); 22 Qing He Investment (Hu Ang); 23
CaiTong Securities Asset Management (Yi
Xiaojin); 24 Foresight Foundation (Cui Wenqi and
Zhu Lin); 25 Futurus Vessel Capital (Liao Shudi);
26 Hua'an Securities (Liu Tianqi); 27 Taiping
Asset (Zhao Xinyu); 28 Franklin Templeton
Sealand Fund (Zhang Rui); 29 Huafu Fund (Deng
Xianbo); 30 Nomura Asset (Wu Gangxiang) ); 31
Xiangsheng Asset(Zhang Tao); 32 Origin Asset
(Zhang Yupeng); 33 The Green LeInvestment (Xie
Mengfei)
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 considered and passed the Market Value Management System at the Eleventh 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 the Juchao Information Network
(http://www.cninfo.com.cn) on April 15 2025.XIV. Implementation of the “Quality-Return dual improvement” action plan
Whether the Company disclosed the “quality-return dual improvement” action plan.√Yes □ no
In order to implement the guiding ideology of “to activate the capital market and boost investor confidence” proposed by the PoliticalBureau meeting of the CPC Central Committee and “to vigorously improve the quality and investment value of listed companies totake more effective and effective measures to stabilize the market and stabilize confidence” safeguard the rights and interests of all
shareholders enhance investor confidence and promote the long-term sustainable development of the Company. The Company
published the "Announcement on the Action Plan of" Double Improvement of Quality and Return "(2024-002) on designated
information disclosure media and Cninfo (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'sdevelopment results” “deepening corporate governance and improving the standard operation level” and “compliance informationdisclosure and sincere two-way communication”.During the reporting period the Company actively promoted the implementation of the “Double Enhancement of Quality and Returns”
action program adhered to its original intention focused on its main business and continued to enhance investors’ sense of gain whilesafeguarding the enhancement of the Company’s intrinsic value. For details please refer to the “Progress Announcement on the Action
412024 Annual Report of Zhejiang NHU Co. Ltd.Program of ‘Double Enhancement of Quality and Return’ ” (2025-020) published by the Company on April 15 2025 in the designated
information disclosure media and on the Cninfo (http://www.cninfo.com.cn).
422024 Annual Report of Zhejiang NHU Co. Ltd.
Section IV Corporate Governance
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'sRepublic of China” and relevant laws regulations and regulatory documents of CSRC and the Shenzhen Stock Exchange.
1. About shareholders and general meetings: The Company convenes and holds general meetings in accordance with the requirements
of the “Rules for General Meetings of Listed Companies” and its “Rules of Procedure for General Meetings” 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 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 investor through
general meetings and does not directly or indirectly interfere with the decision-making and operation activities of the Company beyond
the general meetings. 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 Board of Supervisors and internal organizations can operate independently.
3. About directors and the Board of Directors: The Company elects directors and engages independent directors in strict accordance
with the selection and appointment procedures as stipulated in the “Company Law” and the “Articles of Association”. 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 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 supervisors and the Board of Supervisors: The Company's Board of Supervisors strictly implements relevant provisions of
the “Company Law” and the “Articles of Association” and its size and composition meet the requirements of laws and regulations.Under the principle of being responsible to all shareholders especially small and medium-sized shareholders the Board of Supervisors
perform their duties conscientiously conducts supervision on the Company's financial position significant events related party
transactions as well as the legality and compliance of directors and other senior executives in the performance of their duties and
expresses opinions independently in accordance with the “Rules of Procedure of the Board of Supervisors” and other rules.
5. About performance evaluation and incentive and restraint mechanism: The Company's performance evaluation and incentive
mechanism is fair and transparent and the emoluments of directors supervisors and senior executives are based on the Company's
performance and individual performance; the appointment of senior executives strictly follows the “Articles of Association” and
relevant laws and regulations.
6. 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 (http://www.cninfo .com.cn) as the designated newspapers and websites for the Company'sinformation disclosure; Complying with relevant laws and regulations and the requirements of the Company's “Information DisclosureManagement System” the Company discloses relevant information in a true accurate complete and timely manner to ensure that all
432024 Annual Report of Zhejiang NHU Co. Ltd.
shareholders have equal access to information.
7. 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.
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 executives 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 general meeting of shareholders
the Board of Directors the Board of Supervisors 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 the Procurement Department Marketing Service Department the
General Engineer's Office the 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.
442024 Annual Report of Zhejiang NHU Co. Ltd.
III. Horizontal competition
□ Applicable √ Not applicable
IV. Annual general meeting and extraordinary general meetings held during the reporting
period
1. General meeting of shareholders
Proportion of
Session Type of meetings participating Meeting date Disclosure date Resolutions
investors
19 proposals including the
Annual Work Report of the
Board of Directors of 2023
General meeting of were deliberated and
Annual general meeting
shareholders of 60.20% May 15 2024 May 16 2024 approved. Please refer to
of shareholders
2023 Announcement No. 2024-022
disclosed on
http://www.cninfo.com.cn for
details.Motion on Foreign
Investment and Signing of the
The first Investment Cooperation
extraordinary Agreement was deliberated
Extraordinary general
general meeting of 56.42% August 02 2024 August 03 2024 and approved. Please refer to
meeting of shareholders
shareholders in Announcement No. 2024-031
2024 disclosed on
http://www.cninfo.com.cn for
details.Proposal to change the use of
repurchased shares and to
The second
cancel them was deliberated
extraordinary December 04 December 05
Extraordinary general and approved. Please refer to
general meeting of 55.96%
meeting of shareholders 2024 2024 Announcement No. 2024-043
shareholders in
disclosed on
2024
http://www.cninfo.com.cn for
details.
2. Preference shareholders with restored voting rights request to convene an extraordinary general meeting
□ Applicable √ Not applicable
V. Directors supervisors and senior executives
1. Basic information
Number of Number of N of shares Number of
shares held shares decreased Other shares held
Commence Termination Reasons for
at the increased in in the increase / at the end
Name Gender Age Position Status ment date of date of increase or
beginning of the current current decrease of the
service service decrease
the period period period (shares) period
(shares) (shares) (shares) (shares)
Hu Baifan Male 63 Chairman Incumbent 2/26/1999 9/19/2026 13922998 13922998
Vice Chairman
Hu Baishan Male 58 Incumbent 2/26/1999 9/19/2026 President 14595929 14595929
452024 Annual Report of Zhejiang NHU Co. Ltd.
Number of Number of N of shares Number of
shares held shares decreased Other shares held
Commence Termination Reasons for
at the increased in in the increase / at the end
Name Gender Age Position Status ment date of date of increase or
beginning of the current current decrease of the
service service decrease
the period period period (shares) period
(shares) (shares) (shares) (shares)
Director Vice
President
Shi Guanqun Male 54 Incumbent 2/26/1999 9/19/2026 Secretary of the 10477838 10477838
Board CFO
Director Vice
Wang Xuewen Male 56 Incumbent 2/26/1999 9/19/2026 President 8877931 8877931
Wang
Male 56 Director Incumbent 4/12/2008 9/19/2026 Zhengjiang 459000 459000
Zhou Guiyang Male 50 Director Incumbent 4/20/2011 9/19/2026 165242 165242
Yu Hongwei Male 54 Director Incumbent 9/19/2023 9/19/2026
Independent
Ji Jianyang Male 46 Incumbent 9/15/2020 9/19/2026 Director
Independent
Shen Yuping Male 68 Incumbent 9/19/2023 9/19/2026 Director
Independent
Wan Feng Male 49 Incumbent 9/19/2023 9/19/2026 Director
Independent
Wang Yang Male 46 Incumbent 9/19/2023 9/19/2026 Director
Chairman of the
Lv Guofeng Male 53 Board of Incumbent 9/15/2020 9/19/2026
Supervisors
Zhao Jia Female 44 Supervisor Incumbent 9/19/2023 9/19/2026
Wang Xiaobi Female 43 Supervisor Incumbent 9/19/2023 9/19/2026
Yan Hongyue Male 55 Supervisor Incumbent 9/15/2020 9/19/2026
Li Huafeng Male 42 Supervisor Incumbent 9/19/2023 9/19/2026
Zhang Liying Female 48 Vice President Incumbent 9/19/2023 9/19/2026 47400 47400
Total -- -- -- -- -- 48546338 48546338 --
Whether there was any resignation of directors and supervisors and dismissal of senior executives during the reporting period
□ Yes √ No
Changes of directors supervisors and senior executives
□ Applicable √ Not applicable
2. Profiles of directors supervisors and senior executives
Professional background main work experience and main responsibilities of current directors supervisors and senior managers of the
Company
Hu Baifan (Graduate 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.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 Nutrition Business Department. He used to be the manager of the Company's supply and
462024 Annual Report of Zhejiang NHU Co. Ltd.
marketing company.Wang Zhengjiang (Master's degree 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) currently serves as the Director of the Company and General Manager of New Material Division
and General Manager of Zhejiang NHU Nylon Material Co. Ltd. and Tianjin NHU Material Science & Technology Co. He used to be
the General Manager of Shangyu NHU Bio-Chem Co. Ltd. and General Manager of Zhejiang NHU Specialty Materials Co.Yu Hongwei (Bachelor's degree) currently serves as the Director of the Company General Manager of Shandong NHU Holding
Company Limited Shandong Industrial Park and 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 tutor of Zhejiang University Law School and served as independent director of Jingu Stock (002488) and Fengli
Intelligence (301368).Shen Yuping (PhD in Economics) independent director has served as professor and dean of Zhejiang University of Finance and
Economics and is currently a professor of Zhejiang University of Finance and Economics a master's supervisor a famous teacher in
Zhejiang Province a registered tax agent and a talent of the “151 Talent Project”. He is also the independent director of Hongxun
Technology (603015) and Hangzhou Landscape Architecture (300649).Wan Feng Ph.D. independent Director has served as senior software Engineer of Oracle Software Company (China) Assistant
Professor of Business and Management School of Beijing Normal University and Associate Professor of University of East Anglia.Since 2021 he has been an associate professor of International Business School of Zhejiang University.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 Small
and Medium Enterprises Share Transfer System Co. LTD. senior manager of Zhongguancun Innovative and Entrepreneurial
Enterprises Listing Training Base of Shenzhen Stock Exchange. Since 2018 he has been the director of risk control and the person in
charge of compliance risk control of Beijing Zhiming Haojin Investment Management Co. LTD.Lv Guofeng (Master's degree) Chairman of the Board of Supervisors of the Company is currently the general manager of Heilongjiang
NHU Biotechnology Co. LTD. and used to be the general manager of Fragrance Division general manager of Shandong NHU
Pharmaceutical Co. LTD. and general manager of Shangyu Production Area of Nutrition Division.Zhao Jia (Master's degree) Supervisor of the Company currently serves as the director of Risk Control Department of NHU Holding
Group Co. LTD. She is also the chairman of the Board of Supervisors of Front Pharmaceutical PLC. and the supervisor of Shaoxing
Yuexiu Education Development Co. LTD. Zhejiang Jingshi Real Estate Co. LTD. Shaoxing Heyue Property Services Co. LTD. She
served as the legal secretary of NHU Holding Group Co. LTD. the secretary of the board of Front Pharmaceutical PLC.. and the
director of the Supervision Department of NHU Holding Group Co. LTD.Wang Xiaobi (Bachelor's degree) senior accountant Supervisor of the Company currently Assistant Vice President of the Company
and head of the Securities Department and also serves as the supervisor of Shandong NHU Holding Co. LTD. Heilongjiang NHU
Biological Chemical Co. LTD. Zhejiang Saiya Chemical Co. LTD. She was the head of the fund Department and the Minister of
Finance of the Company.Yan Hongyue (Bachelor's degree) currently serves as the Supervisor of the Company and General Manager of Xinchang Base. He used
to be the General Manager of Shandong NHU Vitamins Co. Ltd. Assistant to General Manager and Deputy General Manager of
472024 Annual Report of Zhejiang NHU Co. Ltd.
Shandong NHU Pharmaceutical Co. Ltd.Li Huafeng (Master's degree) currently serves as the Supervisor of the Company the assistant vice president and deputy General
manager of Animal Nutrition Division of the Company. He used to be the head of the Spice Sales Department assistant general manager
and sales manager deputy general manager of the Spice Department Sales manager Deputy general manager and marketing manager
of the Nutrition Department.Zhang Liying (Bachelor's degree) senior economist current Vice president of the Company has served as Deputy Chief of the Quality
Control Section director of the Company Certification Office Assistant Minister of Enterprise Management Assistant director of the
President's Office Deputy Minister of Enterprise Management (presiding) Deputy Minister of Human Resources (presiding) Minister
of Human Resources and assistant to Vice President.Directors supervisors and senior executives that serve in shareholders
√ Applicable □ Not applicable
Whether receive
Commenceme
Name of shareholders Termination emoluments and Name of persons Position in shareholders nt date of
date of service allowances from
service
shareholders
Hu Baifan NHU Holding Group Co. Ltd. Chairman CEO 11/11/2011 12/27/2026 No
Hu Baishan NHU Holding Group Co. Ltd. Director 11/11/2011 12/27/2026 No
Shi Guanqun NHU Holding Group Co. Ltd. Director 11/11/2011 12/27/2026 No
Wang Xuewen NHU Holding Group Co. Ltd. Director 11/11/2011 12/27/2026 No
Wang Zhengjiang NHU Holding Group Co. Ltd. Director 12/28/2023 12/27/2026 No
Chairman of the Board of
Zhou Guiyang NHU Holding Group Co. Ltd. 12/28/2023 12/27/2026 No
Supervisors
Head of Risk Control
Zhao Jia NHU Holding Group Co. Ltd. 4/1/2019 To date Yes
Department
Explanation of employment at shareholder units None
Directors supervisors and senior executives that serve in other entities
√ Applicable □ Not applicable
Whether receive
Name of Position in other Commencement Termination emoluments and
Name of other entities
persons entities date of service date of service allowances from
other entities
Executive Director
Hu Baifan Zhejiang Gengdu Investment Co. Ltd. 9/4/2012 To date No
and CEO
Hu Baifan Xinchang Heli Investment Co. Ltd. Director 1/3/2017 To date No
Hu Baifan Safe & Rich Venture Capital Co. Ltd. Director 12/5/2008 To date No
Hangzhou Tongheng Investment
Hu Baifan Director 9/21/2015 To date No
Management Co. Ltd.Hu Baifan Xinchang Qinjin Investment Co. Ltd. Chairman 6/10/2015 To date No
Hu Baifan Xinchang Qinjin Investment Co. Ltd. CEO 5/30/2019 To date No
Xinchang Rural Commercial Bank
Hu Baifan Director 1/26/2005 To date No
Co. Ltd.Hu Baifan Beijing Front Pharma CO. LTD. Director 5/16/2019 5/27/2025 No
Shaoxing Yuexiu Education
Hu Baifan Chairman and CEO 12/5/2016 7/25/2026 No
Development Co. Ltd.Zhejiang Huixian Venture Capital Co. Executive Director
Hu Baifan 7/21/2022 7/10/2024 No
Ltd. and CEO
Hu Baifan Zhejiang Hefeng Investment Co. Ltd. Executive Director 4/20/2018 To date No
Hu Baifan Zhejiang Hefeng Investment Co. Ltd. CEO 7/21/2022 To date No
Hu Baifan NHU Real Estate Holding Co. Ltd. Director 12/2/2010 To date No
482024 Annual Report of Zhejiang NHU Co. Ltd.
Whether receive
Name of Position in other Commencement Termination emoluments and
Name of other entities
persons entities date of service date of service allowances from
other entities
Xinchang County NHU Real Estate
Hu Baifan Director 3/20/2017 To date No
Co. Ltd.Hu Baifan Qionghai Boao Lido Real Estate Co. Director 6/21/2024 To date No
Hu Baishan Zhejiang Second Pharma Co. Ltd. Director 9/15/2017 12/20/2024 No
Shaoxing Yuexiu Education
Hu Baishan Director 12/5/2016 7/25/2026 No
Development Co. Ltd.Shi Guanqun Xinchang Heli Investment Co. Ltd. Chairman 11/30/2012 To date No
Shi Guanqun Xinchang Qinjin Investment Co. Ltd. Director 6/10/2015 To date No
Shaoxing Yuexiu Education
Shi Guanqun Director 12/5/2016 7/25/2026 No
Development Co. Ltd.Shi Guanqun NHU Real Estate Holding Co. Ltd. Director 12/2/2010 To date No
Shi Guanqun Zhejiang Jingshi Real Estate Co. Ltd. Director 9/22/2020 5/28/2027 No
Shi Guanqun Zhejiang Deli Equipment Co. Ltd. Director 12/5/2016 To date No
Shi Guanqun Beijing Front Pharma CO. LTD. Director 5/16/2019 5/27/2025 No
Xinchang County NHU Real Estate
Shi Guanqun Director 3/20/2017 To date No
Co. Ltd.Shi Guanqun Qionghai Boao Lido Real Estate Co. Director 6/21/2024 To date No
Zhejiang Hui Xian Venture Capital
Shi Guanqun Executive Director 7/10/2024 To date No
Co.Envalior NHU Engineering Materials
Zhou Guiyang Vice Chairman 1/7/2016 To date No
(Zhejiang) Co. Ltd.Zhejiang Saiya Chemical Materials
Zhou Guiyang Director 1/3/2017 3/28/2026 No
Co. Ltd.Beijing Guantao Zhongmao
Ji Jianyang Partner 1/9/2014 To date Yes
(Hangzhou) Law Firm
Ji Jianyang Zhejiang Jingu Co. Ltd. Independent Director 10/16/2020 11/6/2026 Yes
Zhejiang Fore Intelligent Technology
Ji Jianyang Independent Director 12/12/2023 12/11/2026 Yes
Co. Ltd.Hangzhou Quantum Fanyu Film and
Ji Jianyang Director 5/28/2021 5/27/2024 Yes
Television Culture Media Co. Ltd
Ji Jianyang Zhejiang International Trade Group Outside director 12/18/2021 12/17/2024 Yes
Zhejiang University of Finance &
Shen Yuping Professor 8/6/1980 To date Yes
Economics
Shen Yuping Ningbo Techmation Co. Ltd. Independent Director 2/1/2021 10/29/2026 Yes
Zhejiang Jiaao Enprotech Stock Co.Shen Yuping Independent Director 9/5/2022 3/13/2024 Yes
Ltd.Hangzhou Landscape Architecture
Shen Yuping Independent Director 9/18/2024 12/27/2025 Yes
Design Institute Co. Ltd.Shen Yuping Tax Institute of Zhejiang Provincial Vice Chairman 4/26/2014 4/27/2024 No
Liangzhi Zhongcheng Certified Public
Shen Yuping Consultant 5/16/2022 4/16/2024 Yes
Accountants
Zhejiang University International
Wan Feng Associate Professor 12/1/2021 12/31/2027 Yes
Business School
Risk Control Director
Beijing Zhiming Haojin Investment Compliance Risk
Wang Yang 1/1/2018 To date Yes
Management Co. Ltd. Control Responsible
Person
Wang Yang Pacific Securities Co. Ltd Investment Advisor 12/1/2018 To date Yes
Henan Pingmei Shenma Private
Wang Yang Director 3/1/2021 To date No
Equity Fund Management Co. Ltd
Guangdong Yikang Health Industry
Wang Yang Independent Director 1/1/2021 To date Yes
Group Co. Ltd.Wang Yang Intco Medical Technology Co. Ltd. Independent Director 3/14/2022 To date Yes
Chairman of the
Zhao Jia Beijing Front Pharma CO. LTD. 5/28/2022 5/27/2025 No
Board of Supervisors
492024 Annual Report of Zhejiang NHU Co. Ltd.
Whether receive
Name of Position in other Commencement Termination emoluments and
Name of other entities
persons entities date of service date of service allowances from
other entities
Shaoxing Yuexiu Education
Zhao Jia Supervisor 12/5/2016 7/25/2023 No
Development Co. Ltd.Zhao Jia Zhejiang Jingshi Real Estate Co. Ltd. Supervisor 9/22/2020 To date No
Chairman of the
Wang Xiaobi Zhejiang Saiya Chemical Co. Ltd. 7/23/2023 3/28/2026 No
Board of Supervisors
Wang Xiaobi Xinchang Heli Investment Co. Ltd. Director 12/29/2016 To date No
Chairman of the
Wang Xiaobi Zhejiang Second Pharma Co. Ltd. 12/20/2024 12/20/2027 No
Board of Supervisors
Explanation of employment at shareholder units Not applicable
Penalties imposed by securities regulators on current and outgoing directors supervisors and senior executives of the Company in the
past three years
□ Applicable √ Not applicable
3. Remuneration of directors supervisors and senior managers
Decision-making procedure basis for determination and actual payment of emoluments of directors supervisors and senior executives
Decision-making procedure: According to the standards stipulated by the Company's unified remuneration management system the
emoluments of the Company's directors supervisors and senior executives 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 general meeting of shareholders.Basis for determination: Emoluments of directors supervisors and senior executives are determined based on the Company's results of
operations and performance appraisal indicators.Emoluments of directors supervisors and senior executives during the reporting period
Unit: RMB 0000 yuan
Total pre-tax Whether receive
compensation emoluments from
Name Gender Age Position Status
received from the related parties of
company the Company
Hu Baifan Male 63 Chairman Incumbent 530.73 No
Hu Baishan Male 58 Vice Chairman President Incumbent 430.75 No
Director Vice President
Shi Guanqun Male 54 Incumbent 269.45 No
Secretary of the Board CFO
Wang Xuewen Male 56 Director Vice President Incumbent 296.95 No
Wang Zhengjiang Male 56 Director Incumbent 283.96 No
Zhou Guiyang Male 50 Director Incumbent 252.5 No
Yu Hongwei Male 54 Director Incumbent 279.77 No
Ji Jianyang Male 46 Independent Director Incumbent 12 No
Shen Yuping Male 68 Independent Director Incumbent 12 No
Wan Feng Male 49 Independent Director Incumbent 12 No
Wang Yang Male 46 Independent Director Incumbent 12 No
Chairman of the Board of
Lv Guofeng Male 53 Incumbent 231.47 No
Supervisors
Zhao Jia Female 44 Supervisor Incumbent 0 Yes
Wang Xiaobi Female 43 Supervisor Incumbent 61.46 No
Yan Hongyue Male 55 Supervisor Incumbent 174.96 No
502024 Annual Report of Zhejiang NHU Co. Ltd.
Total pre-tax Whether receive
compensation emoluments from
Name Gender Age Position Status
received from the related parties of
company the Company
Li Huafeng Male 42 Supervisor Incumbent 132.05 No
Zhang Liying Female 48 Vice President Incumbent 169.56 No
Total -- -- -- -- 3161.61 --
Other information note
□ Applicable √ Not applicable
VI. Directors' performance of duties during the reporting period
1. Meetings of the Board of Directors during the reporting period
Session Meeting date Disclosure date Resolutions
33 proposals including the “Annual Work Report of theThe Third meeting of the Ninth 4/19/2024 4/23/2024 Board of Directors of 2023” were deliberated and
session Board of Directors approved. Please refer to Announcement No. 2024-004
disclosed on http://www.cninfo.com.cn for details.
10 proposals including the “First Quarterly ReportThe Fourth meeting of the Ninth
4/26/2024 4/30/2024 2024” were deliberated and approved. Please refer to session session of Board of
Announcement No. 2024-020 disclosed on
Directors
http://www.cninfo.com.cn for details.“Proposal on the Sale of Assets and ConnectedThe Fifth meeting of the Ninth
6/18/2024 6/19/2024 Transactions” was deliberated and approved. session session of Board of
Please refer to Announcement No. 2024-025 disclosed
Directors
on http://www.cninfo.com.cn for details.
2 proposals including the “Proposal to invest in aThe Sixth meeting of the Ninth foreign country and sign an investment and cooperationsession session of Board of 7/17/2024 7/18/2024 agreement” were deliberated and approved. Please
Directors refer to Announcement No. 2024-028 disclosed on
http://www.cninfo.com.cn for details.
3 proposals including the “Semi-Annual Report andThe Seventh meeting of the Ninth 8/21/2024 8/23/2024 Summary 2024” were deliberated and approved. Please
session of Board of Directors refer to Announcement No. 2024-032 disclosed on
http://www.cninfo.com.cn for details.
3 proposals including the “Third Quarterly ReportThe Eighth meeting of the Ninth 10/23/2024 10/24/2024 2024” were deliberated and approved. Please refer to
session of Board of Directors Announcement No. 2024-036 disclosed on
http://www.cninfo.com.cn for details.
3 proposals including the “Proposal to change the useof repurchased shares and cancel them” were
The Ninth meeting of the Ninth 11/18/2024 11/19/2024 deliberated and approved. Please refer to
session of Board of Directors
Announcement No. 2024-039 disclosed on
http://www.cninfo.com.cn for details.
2 proposals including the “Proposal for a specialThe Tenth meeting of the Ninth 12/18/2024 12/19/2024 dividend program” were deliberated and approved.session of Board of Directors Please refer to Announcement No. 2024-046 disclosed
on http://www.cninfo.com.cn for details.
2. Directors' attendance at meetings of the Board of Directors and general meetings of shareholders
Directors' attendance at meetings of the Board of Directors and general meetings of shareholders
Number of Number of Number of Whether directors
Number of Number of Number of
board meetings board board meetings failed to attend
Name of board meetings absences general
to be present meetings attended two consecutive
directors attended by from board meetings
during the attended on through audio board meetings in
proxy meetings attended
reporting period site visual means person
512024 Annual Report of Zhejiang NHU Co. Ltd.
Hu Baifan 8 8 0 0 0 No 3
Hu Baishan 8 8 0 0 0 No 3
Shi Guanqun 8 8 0 0 0 No 3
Wang Xuewen 8 7 1 0 0 No 2
Wang
8 1 7 0 0 No 1
Zhengjiang
Zhou Guiyang 8 2 6 0 0 No 3
Yu Hongwei 8 1 7 0 0 No 0
Ji Jianyang 8 1 7 0 0 No 2
Shen Yuping 8 1 7 0 0 No 3
Wan Feng 8 1 7 0 0 No 2
Wang Yang 8 1 7 0 0 No 1
Remarks on failure to attend two consecutive board meetings in person: N/A
3. 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.
4. Other remarks on directors' performance of duties
Whether the directors' recommendation on the Company were adopted
√ Yes □ No
Remarks on directors' recommendation 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 ofDirectors” and relevant laws and regulations actively attended board meetings and general 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 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.VII. Special committees under the Board of Directors during the reporting period
Important
Other Details of
Number of comments and
Name of committees Members Meeting date Content of meeting performance dispute (if
meetings held suggestions
of duties any)
made“Amendment to the Rules of ProcedureJi Jianyang Hu
Nomination 1 4/9/2024 of the Nomination Committee of the Baifan WangCommittee Board of Directors” was deliberated and
Yang
approved.Wan Feng Hu
4 proposals including “Proposal onCompensation and Baishan Shi
Remuneration of Non-Independent
Evaluation Guanqun Ji 1 4/9/2024Directors” were deliberated and
Committee Jianyang and
approved.Wang Yang
2 proposals including “Social
4/9/2024Hu Baifan Hu Responsibility Report for the year 2023”
Baishan Wang were deliberated and approved.Strategy Committee Xuewen Wan 2Feng and Wang “Proposal on Foreign Investment andYangn 7/10/2024 Signing of Investment and CooperationAgreement” was deliberated and
approved.
522024 Annual Report of Zhejiang NHU Co. Ltd.
Important
Other Details of
Members Number of Name of committees Meeting date Content of meeting
comments and
performance dispute (if
meetings held suggestions
of duties any)
made
8 proposals including “Proposal on the
4/9/2024 Summary of Internal Audit Work in 2023and Work Plan for 2024” were
deliberated and approved.
3 proposals including “Proposal on theSummary of Internal Audit Work in the
4/19/2024
First Quarter of 2024 and Work Plan forthe Second Quarter” were deliberated
and approved.
4
3 proposals including “Over the Semi-Shen Yuping Ji Annual Internal Audit Work Summary
8/18/2024
Jianyang Wang for 2024 and Work Plan for the Third
Audit CommitteeYang Quarter of 2024” were deliberated and
approved.
3 proposals including “Summary ofInternal Audit Work in the Third Quarter
10/18/2024 of 2024 and Work Plan for the FourthQuarter of 2024” were deliberated and
approved.VIII. Work of the Board of Supervisors
Whether the Board of Supervisors found any risks in the Company during its supervisory activities in the reporting period
□ Yes √ No
The Board of Supervisors has no objection to the supervised matters during the reporting period.IX. Employees
1. Number of employees professional workforce and education level
Number of active employees of the parent company at the end of the
2150
reporting period
Number of active employees of major subsidiaries at the end of the
9219
reporting period
Total number of active employees at the end of the reporting period 11369
Total number of employees receiving remuneration in the current period 11369
Number of retired cadres and employees whose expenses borne by the
39
parent company and major subsidiaries
Professional workforce
Categories Number
Production staff 7205
Sales staff 167
Technical staff 2867
Finance staff 99
Administrative staff 1031
Total 11369
Education level
Categories Number
Doctoral degree 85
Master's degree 1252
Bachelor's degree 3727
532024 Annual Report of Zhejiang NHU Co. Ltd.
Associate degree 4056
High school education secondary vocational school education or below 2249
Total 11369
2. Remuneration policy
The Company formulates the “Remuneration Management System” in accordance with the “Labor Law of the People's Republic ofChina” 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 tenure and additional rewards for high performance beyond expectations. The Company
pays five insurances and a housing fund and continuously improves employee satisfaction and loyalty.
3. Training program
With the strategic goal of “building a highland of talents” the Company takes supporting business development as the starting point
and job-based talent standards as the direction to promote various types of talent training in an orderly manner. It launches leadership
training courses for middle level high level and grassroots management cadres to effectively improve the management ability and
quality of management cadres. It also launches professional ability development classes related to equipment HSE and R&D to
strengthen technical staff skills. For new staff the Company offers induction training to enhance their cultural identities and
professional abilities. 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 makes efforts to cultivate 5 types of talents:
international talents leadership talents management talents core technical talents and core skill talents. 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 ou” 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
X. 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
1. The Third Meeting of the Ninth Session of the Board of Directors of the Company held on April 19 2024 and the Annual GeneralMeeting of the Company for the year 2023 held on May 15 2024 considered and approved the “Proposed Distribution of Profit for theYear 2023” which was implemented and completed on May 29 2024. The proposal for the annual distribution of profit for the year
2023 was based on the total capital of the Company at the time of the year which was 3090907356 shares after excluding 17485676
shares which were repurchased and a cash dividend of 4.50 per 10 shares was distributed to all shareholders. Based on the total share
capital of 3090907356 shares of the Company at that time excluding 17485676 shares that had been repurchased 3073421680
shares a cash dividend of RMB4.50 (including tax) per 10 shares was paid to all shareholders totaling a cash distribution of
542024 Annual Report of Zhejiang NHU Co. Ltd.
RMB1383039756.00 (including tax).
2. The Tenth Meeting of the Ninth Session of the Board of Directors of the Company held on December 18 2024 and the First
Extraordinary General Meeting of 2025 held on January 7 2025 considered and passed the Proposal on Special Dividend Scheme
which was implemented on January 22 2025 and completed. The special dividend program is as follows: based on the Company's
existing total share capital of 3073421680 shares a cash dividend of RMB2 (including tax) per 10 shares will be paid to all
shareholders totaling RMB614684336.00 (including tax).Special remarks on cash dividend policy
Whether it complies with the Articles of Association or the resolution Yes
of the general meeting:
Whether the criteria and proportion of dividends are clear and Yes
unambiguous:
Whether relevant decision-making procedures and mechanisms are Yes
complete:
Whether the independent directors have performed their duties and Yes
responsibilities and played their due roles:
Specific reasons and the next steps it intends to take to enhance the N/A
investor return level if the Company did not pay cash dividend:
Whether small and medium-sized shareholders have adequate
opportunities to express their opinions and demands and whether Yes
their legitimate rights and interests are adequately protected:
In case of changes or adjustments to the cash dividend policy N/A
whether the conditions and procedures are compliant and 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
Number of bonus shares for every 10 shares (shares) 0
Dividends for every 10 shares (yuan) (tax included) 5
Equity base for distribution proposal (shares) 3073421680
Amount of cash dividends (yuan) (tax included) 1536710840.00
Amount of cash dividends by other methods (such as share
0
repurchase) (yuan)
Total cash dividends (including those by other methods) (yuan) 1536710840.00
Profit available for distribution (yuan) 6481153549.07
Proportion of total cash dividends (including those by other methods)
100%
to total profit distribution
Details on cash dividend
If the Company is in a growth stage and 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
Based on the existing total share capital of 3073421680 shares a cash dividend of RMB5.00 (inclusive of tax) for every 10 shares
will be paid to all shareholders 0 bonus shares will be distributed (inclusive of tax) and the capital will not be increased by way of
capitalization of capital reserve.The total cash distribution amounted to RMB1536710840.00 and the remaining profit available
for distribution to shareholders which will be carried forward to the next year.If the Company's total share capital was changed due to the conversion of convertible bonds into shares share repurchase equity
incentive exercise refinancing and issuing new shares to the public before the implementation of the distribution plan the total
552024 Annual Report of Zhejiang NHU Co. Ltd.
distribution amount shall be adjusted with distribution proportion unchanged.For the fiscal year 2024 the Company's cumulative cash dividend distribution totals RMB 2151395176.00. This includes a special
dividend distribution plan of RMB 614684336.00 for 2024 and a proposed cash dividend of RMB 1536710840.00 under the 2024
annual profit distribution proposal (the latter is pending approval at the Company's 2024 Annual General Meeting of Shareholders).XI. 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 executives of the Company
□ Applicable √ Not applicable
Assessment mechanism and incentives for senior executives
Not applicable.
2. Implementation of employee stock ownership plans
√ Applicable □ Not applicable
All active employee stock ownership plans during the reporting period
Scope of employees Number of Total shares Changes Proportion to total share Sources of fund to
employees held capital of the Company implement the plan
The fourth phase of employee stock
Legal remuneration of
ownership plan: directors
the employees self-
supervisors senior executives of the
Company and regular employees of 627 29528181 N/A 0.96%
raised funds and other
methods permitted by
the Company and its holding
laws and administrative
subsidiaries or wholly-owned
regulations
subsidiaries who meet the criteria
Shareholdings of directors supervisors and senior executives in the employee stock ownership plan during the reporting period
Number of shares held Number of shares held Proportion to total
Name Position at the beginning of the at the end of the share capital of the
reporting period reporting period Company
Hu Baifan Hu Baishan Shi Guanqun
Wang Xuewen Wang Zhengjiang
Zhou Guiyang Shi Fangbin Lv Directors supervisors 8664835 8664835 0.28%
Guofeng Yu Hongwei Yan Hongyue and senior executives
Chen Zhaofeng Wang Xiaobi Li
Huafeng Zhang Liying
Changes in asset management agency during the reporting period
□ Applicable √ Not applicable
Changes in equity during the reporting period due to disposal of shares by holders etc.□ Applicable √ Not applicable
Pursuant to the “Fourth Employee Stock Purchase Plan (Draft)” the plans voluntarily waives the voting rights of holding shares in the
general meeting of the Company while shares acquired through the employee stock ownership plan carry no voting rights in the general
meeting. During the reporting period the employee stock ownership plan did not exercise the voting rights of holding shares in the
562024 Annual Report of Zhejiang NHU Co. Ltd.
general meeting 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 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
Other remarks
1.The Company held the 16th meeting of the eighth Board of Directors and the 13th meeting of the eighth Board of Supervisors on
June 7 2023 and the first extraordinary general meeting of shareholders in 2023 on June 26 2023 to review and pass the employee
stock ownership Plan related proposals such as the fourth Employee Stock Ownership Plan (Draft) and its summary of Zhejiang NHU
Co. LTD. The fourth phase of the employee stock ownership plan was agreed to be implemented. As of September 25 2023 a total of
29528181 shares of the Company have been purchased under the fourth phase of the employee stock ownership Plan through the
secondary market bidding transaction accounting for 0.9553% of the total share capital of the Company at that time l with a total
transaction amount of 479442157.08 yuan (excluding transaction costs). The average transaction price was about 16.2368 yuan per
share and the Company completed the target stock purchase of the fourth phase of the employee stock ownership plan. The lock-up
period for the Subject Shares acquired under the Phase IV Employee Stock Purchase Plan is 12 months from the date of the
announcement of the completion of the purchase i.e. from September 26 2023 to September 25 2024. The duration of the Employee
Stock Purchase Plan is no more than 24 months calculated from the date of passing the shareholders' meeting i.e. from June 26 2023
to June 25 2025.(Note: The Company completed the cancellation of 17485676 repurchased shares on December 13 2024 and the total share capital
was changed from 3090907356 shares to 3073421680 shares and the ratio of shares held under the Phase IV Employee Share
Ownership Plan to the existing total share capital was adjusted to 0.9607%.)
2.The number of shares held by directors supervisors and senior managers in the employee stock ownership plan is calculated
according to the proportion of the holder's share in the total share of the employee stock ownership plan.
3. Other employee incentive programs
□ Applicable √ Not applicable
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control system
The Company has established a sound internal control system under continuous improvement and enhancement in accordance with the
“Basic Standard for Enterprise Internal Control” and its accompanying guidelines to adapt to the dynamic external environment and
internal management requirements. The Company's internal controls can cover the major aspects of operation and management and
the design of these controls 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
572024 Annual Report of Zhejiang NHU Co. Ltd.
and changes in the internal and external environment including 51 new systems and 84 revised rules and regulations. Including
“Quality Management Manual” “Customer Credit Management Measures” “Production Anomaly and Information TransferManagement Measures" "Production Planning and Production” “Supply and Marketing Scheduling Management Measures” “LegalDispute Case Management Measures” “Sales Plan Management Measures” “Import and Export Business Improvement Mechanismsand 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
XIII. Management control in subsidiaries during the reporting period
Problems
Integration Progress of Solutions Progress of Follow-up
Name of subsidiaries encountered
plan integration adopted solutions solutions
in integration
Tianjin NHU Material
N/A N/A N/A N/A N/A N/A
Technology Co. Ltd.NHU Life Science GmbH N/A N/A N/A N/A N/A N/A
NHU JAPAN CO. LTD. N/A N/A N/A N/A N/A N/A
Cong Ty Tnhh NHU Vietnam N/A N/A N/A N/A N/A N/A
IV. Internal control self-assessment report or auditor's report on internal control
1. Internal control self-assessment report
Date of report April 15 2025Please refer to the “Internal Control Self-Assessment Report of 2024 of Zhejiang NHUFull text of reportCo. Ltd.” disclosed on http://www.cninfo.com.cn on April 15 2025for 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 Categories Categories
Indicators of material deficiencies in The following circumstances are
financial reporting include: 1) fraud by identified as indicators of material
directors supervisors and senior deficiencies while others are
executives; 2) correction of published respectively identified as indicators of
financial reports by the Company; 3) significant deficiencies or general
discovery by the auditor of a material deficiencies according to the degree of
Qualitative criteria misstatement in the current financial impact: 1) lack of democratic or
report that was not detected by internal scientific decision-making procedures
control in the course of operation; and 4) leading to decision-making errors; 2)
ineffective monitoring of internal control violation of laws and regulations such as
by the Company. Indicators of significant environmental pollution failure to report
deficiencies in financial reporting include: or disclose information in accordance
1) failure to select and apply accounting with regulations; 3) loss of executives or
582024 Annual Report of Zhejiang NHU Co. Ltd.
policies in accordance with CASBEs; 2) technical personnel in key positions; 4)
failure to establish anti-fraud procedures internal control evaluation stating that
and controls; and 3) individual or multiple material or significant deficiencies have
deficiencies in the financial reporting not been rectified; 5) lack of system
process that although not meeting the control or systemic failure in important
criteria for determining a significant businesses.deficiency affect the objective of integrity
and accuracy. General deficiencies in
financial 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 potential deficiency is identified when the
misstatement is greater than or equal to potential misstatement is greater than or
the overall materiality. A significant equal to the overall materiality. A
Quantitative criteria deficiency is identified when the potential significant deficiency is identified when
misstatement is less than the overall the potential misstatement is less than the
materiality but greater than or equal to overall materiality but greater than or
20% of the overall materiality. A general equal to 20% of the overall materiality. A
deficiency is identified when the potential general deficiency is identified when the
misstatement is less than 20% of the potential misstatement is less than 20%
overall materiality. of the overall materiality.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. Auditor's report on internal control
√ 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 2024 in accordance with the Basic Standard for Enterprise Internal Control and related regulations.Disclosure of internal control audit report Disclosure
Disclosure date of full text of internal control audit report 4/15/2025For details please refer to http://www.cninfo.com.cn “InternalIndex of Full Text Disclosure of Internal Control Audit ReportControl Audit Report of Zhejiang NHU Co. Ltd.”
Opinion Type of Internal Control Audit Report Standard Unqualified Opinion
Whether there are major defects in the non-financial report No
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-evaluation report of
592024 Annual Report of Zhejiang NHU Co. Ltd.
the board of directors
? Yes □ No
XV. Self-examination and rectification concerning the special action of corporate governance
Not applicable
602024 Annual Report of Zhejiang NHU Co. Ltd.
Section V Environmental and Social Responsibilities
I. Major environmental issues
Whether the Company and its subsidiaries belong to the key pollutant discharging units announced by
departments of environmental protection administration
√ Yes □ No
Environmental protection-related policies and industry standards
Interim Regulations on the Administration of Carbon Emission Trading (Decree No. 775 of the State Council of the People's
Republic of China)
Action Program on Energy Conservation and Carbon Reduction for 2024-2025 (Guo Fa [2024] No. 12)
Announcement on the Publication of the Catalog of Solid Waste Classification and Codes (Ministry of Ecology and Environment No.
4 of 2024)
Nomenclature for Environmental Management of Chemical Substances (Ministry of Ecology and Environment 2024 No. 10)
Measures for the Administration of Sewage Discharge Permits (Decree No. 32 of the Ministry of Ecology and Environment)
Implementation Program on the Establishment of Carbon Footprint Management System (Ministry of Ecology and Environment
Environmental Climate [2024] No. 30)
Work Program on Accelerating the Construction of a Dual Control System for Carbon Emissions (General Office of the State
Council Guo Ban Fa [2024] No. 39)
Framework of Technical Standard System for Environmental Risk Assessment and Control of Chemical Substances (2024 Edition)
(General Office of the Ministry of Ecology and Environment Huanban Solid Letter [2024] No. 351)
Notice on Doing a Good Job in Allocating National Carbon Emission Trading Allowances for the Power Generation Sector for the
Years 2023 and 2024 and Clearing the Payment of the Allowances Ministry of Environmental Protection No. 1 [2024].Implementation Plan for Comprehensively Implementing the Sewage Discharge Permit System Ministry of Ecology and
Environment EIA [2024] No. 79
Action Plan for Prevention and Control of Soil Pollution at Source Ministry of Ecology and Environment EIA [2024] No. 80.National Hazardous Waste List (2025 Edition) Ministry of Ecology and Environment Ministerial Decree No. 36
National Technical Guidance Catalog for Pollution Prevention and Control (Encouraged Category) Ministry of Ecology and
Environment Circular Letter of Science and Finance [2024] No. 455
National Pollution Prevention and Control Technology Guidance Catalog (2024 Restricted and Eliminated Categories) Ministry of
Ecology and Environment Circular No. 283 [2024].Announcement on the Release of Carbon Dioxide Emission Factors for Electricity in 2022 Ministry of Ecology and Environment
Announcement No. 33 of 2024
Administrative permits for environmental protection
On April 12 2024 Zhejiang NHU Pharmanceutical Co.Ltd. completed the re-application of sewage licenses valid until April 11
2029.
On May 17 2024 Zhejiang NHU Special Materials Co.Ltd. completed re-application for sewage licenses valid until May 13 2029.On May 28 2024 Shandong NHU Amino-acids Co.Ltd. completed the re-application of sewage permit valid until May 27 2029.On July 2 2024 Shangyu NHU Bio-Chem Co.Ltd. completed re-application for sewage license valid until July 1 2029
On July 17 2024 Shandong NHU Vitamins Co.Ltd completed re-application for sewage license valid until July 16 2029
612024 Annual Report of Zhejiang NHU Co. Ltd.
On July 17 2024 Shandong NHU Fine ChemicalScience and Technology Co.Ltd completed re-application for sewage licenses valid
until July 16 2029.On September 14 2024 The Company completed re-application for emission permit valid until September 13 2029
On September 30 2024 Shandong NHU Pharmanceutical Co.Ltd. completed re-application for sewage license valid until September
292029
On December 13 2024 Heilongjiang NHU Biotechnology Co. Ltd. completed the re-application of sewage permit valid until May
172028.
On April 8 2024 Shandong NHU Pharmaceutical Co. Ltd. obtained the approval of the Environmental Impact Report for the Project
of Co-production of 4500 Tons of Series Alcohol Products per Year of Shandong Xinhecheng Pharmaceutical Co.On July 26 2024 Shandong NHU Pharmaceutical Co. Ltd. obtained the approval of the Environmental Impact Report on the Project
of Annual Output of 8000 Tons of Synthetic Spices of Shandong Xinhecheng Pharmaceutical Co.On August 14 2024 Shandong NHU Pharmaceutical Co. Ltd. obtained the approval of the Environmental Impact Report on the
Project with Annual Output of 4000 Tons of Synthetic Spices of Shandong Xinhecheng Pharmaceutical Co.Industry emission standards and the specific circumstances of pollutant emissions involved in production
and operation activities
Name of Distri
main Numb bution Total
Types of Executive
pollutants er of of amount Total verified Excessive
major and Discharg Discharge pollutant
Name and discha discha of amount of discharge
characteristic e method concentration discharge
pollutant rge rge discharg discharge or not
pollutants standard
characteri outlets outlet e
stics s
Sewer
water Plant
The Company COD connect 1 132mg/L 500mg/L 26.324t ≤164.782t/a No
pollutant area
ion
Sewer
water Plant
The Company NH3-N connect 1 0.6mg/L 35mg/L 0.14t ≤11.535t/a No
pollutant area
ion
Sewer
water Plant
The Company TN connect 1 24.6mg/L 70mg/L 4.572t ≤23.069t/a No
pollutant area
ion
Filtered
atmospheri Plant
The Company PM dischar 1 1.5mg/m3 100mg/m3 0.141t ≤52.54t/a No
c pollutant area
ge
Filtered
atmospheri Plant
The Company NOx dischar 4 34mg/m3 50mg/m3 0.864t ≤8.272t/a No
c pollutant area
ge
Shangyu NHU Sewer
water Plant 501.59
Bio-Chem Co. COD connect 1 244.686mg/L 500mg/L ≤999.65t/a No
pollutant area 7t
Ltd. ion
Shangyu NHU Sewer
water Plant
Bio-Chem Co. NH3-N connect 1 6.451mg/L 35mg/L 13.225t ≤69.976 t/a No
pollutant area
Ltd. ion
Shangyu NHU Sewer
water Plant
Bio-Chem Co. TN connect 1 17.319mg/L 70mg/L 35.504t ≤139.951 t/a No
pollutant area
Ltd. ion
Shangyu NHU Filtered
atmospheri Plant
Bio-Chem Co. VOC dischar 1 7.04mg/m3 100mg/m3 1.66t ≤57.6 t/a No
c pollutant area
Ltd. ge
Shangyu NHU Filtered
atmospheri Plant
Bio-Chem Co. VOC dischar 1 8.989mg/m3 100mg/m3 0.379t ≤43.2 t/a No
c pollutant area
Ltd. ge
622024 Annual Report of Zhejiang NHU Co. Ltd.
Name of Distri
main Numb bution Total
Types of Executive
pollutants er of of amount Total verified Excessive
major and Discharg Discharge pollutant
Name and discha discha of amount of discharge
characteristic e method concentration discharge
pollutant rge rge discharg discharge or not
pollutants standard
characteri outlets outlet e
stics s
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical VOC dischar 1 3.21mg/m3 100mg/m3 0.285t ≤120.7 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical VOC dischar 1 2.537mg/m3 100mg/m3 0.674t ≤1.98 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical VOC dischar 1 0.7mg/m3 100mg/m3 0.012t ≤0.288 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical VOC dischar 1 1mg/m3 100mg/m3 0.002t ≤0.01 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical VOC dischar 1 0.398mg/m3 100mg/m3 0.001t ≤0.032 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical NOx dischar 1 4.16mg/m3 200mg/m3 0.37t ≤19.8 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant 104.516mg/m
Pharmaceutical NOx dischar 1 300mg/m3 27.756t ≤28.08 t/a No
c pollutant area 3
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical NOx dischar 1 15.984mg/m3 50mg/m3 0.775t ≤8.44 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical SO? dischar 1 3.229mg/m3 100mg/m3 0.287t ≤9.295 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical SO? dischar 1 10.081mg/m3 100mg/m3 2.677t ≤37.94 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical SO? dischar 1 4.398mg/m3 50mg/m3 0.213t ≤10.905 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical PM dischar 1 5.257mg/m3 20mg/m3 0.467t ≤5.164 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical PM dischar 1 3.283mg/m3 30mg/m3 0.872t ≤8.42 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical PM dischar 1 5.423mg/m3 20mg/m3 0.263t ≤5.626 t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical NOx dischar 1 3mg/m3 100mg/m3 2.529t ≤51.46t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical SO? dischar 1 15mg/m3 50mg/m3 0.928t ≤32.991t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU atmospheri Filtered Plant
VOC 1 3.3mg/m3 60mg/m3 0.499t ≤41.040t/a No
Pharmaceutical c pollutant dischar area
632024 Annual Report of Zhejiang NHU Co. Ltd.
Name of Distri
main Numb bution Total
Types of Executive
pollutants er of of amount Total verified Excessive
major and Discharg Discharge pollutant
Name and discha discha of amount of discharge
characteristic e method concentration discharge
pollutant rge rge discharg discharge or not
pollutants standard
characteri outlets outlet e
stics s
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical PM dischar 1 0.8mg/m3 20mg/m3 0.428t ≤8.554t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical NOx dischar 1 23.97mg/m3 50mg/m3 7.741t ≤10.48t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical SO? dischar 1 4.3mg/m3 35mg/m3 1.233t ≤18.648t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical VOC dischar 1 14.9mg/m3 60mg/m3 2.419t ≤28.68t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical PM dischar 1 1.25mg/m3 5mg/m3 0.361t ≤2.664t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical NOx dischar 1 26mg/m3 50 mg/m3 0.827t ≤21.34t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical SO? dischar 1 4mg/m3 50mg/m3 0.105t ≤16.281t/a No
c pollutant area
Co. Ltd. ge
Zhejiang NHU Filtered
atmospheri Plant
Pharmaceutical PM dischar 1 2mg/m3 20 mg/m3 0.118t ≤6.512t/a No
c pollutant area
Co. Ltd. ge
Shandong
Filtered
NHU atmospheri Plant
PM dischar 5 1.57mg/m3 10 mg/m3 0.80t ≤14.366t/a No
Pharmaceutical c pollutant area
ge
Co. Ltd.Shandong
Filtered
NHU atmospheri Plant
SO? dischar 3 2.34mg/m3 50 mg/m3 0.99t ≤4.326 t/a No
Pharmaceutical c pollutant area
ge
Co. Ltd.Shandong
Filtered
NHU atmospheri Plant
NOx dischar 5 31.00mg/m3 100 mg/m3 15.84t ≤76.458t/a No
Pharmaceutical c pollutant area
ge
Co. Ltd.Shandong
Filtered
NHU atmospheri Plant
VOC dischar 3 41.61mg/m3 60 mg/m3 17.64t ≤153.75t/a No
Pharmaceutical c pollutant area
ge
Co. Ltd.Shandong
Sewer
NHU water Plant
COD connect 1 524mg/L 1000mg/L 143.37t ≤742.89t/a No
Pharmaceutical pollutant area
ion
Co. Ltd.Shandong
Sewer
NHU water Plant
NH3-N connect 1 17.6mg/L 100 mg/L 4.59t ≤74.29 t/a No
Pharmaceutical pollutant area
ion
Co. Ltd.Shandong water TN Sewer 1 Plant 46.7mg/L 120 mg/L 12.11t ≤89.15 t/a No
642024 Annual Report of Zhejiang NHU Co. Ltd.
Name of Distri
main Numb bution Total
Types of Executive
pollutants er of of amount Total verified Excessive
major and Discharg Discharge pollutant
Name and discha discha of amount of discharge
characteristic e method concentration discharge
pollutant rge rge discharg discharge or not
pollutants standard
characteri outlets outlet e
stics s
NHU pollutant connect area
Pharmaceutical ion
Co. Ltd.Shandong Filtered
atmospheri Plant
NHU Amino- SO? dischar 7 5.16 mg/m3 50 mg/m3 22.48t ≤162.472t/a No
c pollutant area
acids Co. Ltd. ge
Shandong Filtered
atmospheri Plant
NHU Amino- NOx dischar 9 37.01mg/m3 100 mg/m3 114.13t ≤415.75 t/a No
c pollutant area
acids Co. Ltd. ge
Shandong Filtered
atmospheri Plant
NHU Amino- PM dischar 12 2.23 mg/m3 10 mg/m3 5.72t ≤29.314 t/a No
c pollutant area
acids Co. Ltd. ge
Shandong Filtered
atmospheri Plant
NHU Amino- VOC dischar 6 5.10 mg/m3 60 mg/m3 41.93t ≤236.862t/a No
c pollutant area
acids Co. Ltd. ge
Shandong Sewer
water Plant
NHU Amino- COD connect 1 744 mg/L 1000 mg/L 375.6t ≤1073.97t/a No
pollutant area
acids Co. Ltd. ion
Shandong Sewer
water Plant
NHU Amino- NH3-N connect 1 9.37 mg/L 100 mg/L 5.62t ≤107.40t/a No
pollutant area
acids Co. Ltd. ion
Shandong Sewer
water Plant
NHU Amino- TN connect 1 66.4mg/L 120 mg/L 34.63t ≤128.87t/a No
pollutant area
acids Co. Ltd. ion
Shandong Filtered
atmospheri Plant
NHU Vitamins VOC dischar 4 10.27mg/m3 60 mg/m3 5.77t ≤85.67 t/a No
c pollutant area
Co. Ltd. ge
Shandong Filtered
atmospheri Plant
NHU Vitamins SO? dischar 2 6.75mg/m3 50 mg/m3 3.20t ≤47.84 t/a No
c pollutant area
Co. Ltd. ge
Shandong Filtered
atmospheri Plant
NHU Vitamins NOx dischar 4 47.56mg/m3 100 mg/m3 48.04t ≤83 t/a No
c pollutant area
Co. Ltd. ge
Shandong Filtered
atmospheri Plant
NHU Vitamins PM dischar 4 2.51mg/m3 10 mg/m3 1.054t ≤8.1064 t/a No
c pollutant area
Co. Ltd. ge
Shandong Sewer
water Plant
NHU Vitamins COD connect 1 307mg/L 2000 mg/L 50.12t ≤575.95 t/a No
pollutant area
Co. Ltd. ion
Shandong Sewer
water Plant
NHU Vitamins NH3-N connect 1 3.97mg/L 100 mg/L 0.70t ≤28.8 t/a No
pollutant area
Co. Ltd. ion
Shandong Sewer
water Plant
NHU Vitamins TN connect 1 32.05mg/L 120 mg/L 7.15t ≤34.56 t/a No
pollutant area
Co. Ltd. ion
Shandong
NHU Fine Filtered
atmospheri Plant
ChemicalScien VOC dischar 4 8.43mg/m3 60 mg/m3 1.30t ≤18.031 t/a No
c pollutant area
ce and ge
Technology
652024 Annual Report of Zhejiang NHU Co. Ltd.
Name of Distri
main Numb bution Total
Types of Executive
pollutants er of of amount Total verified Excessive
major and Discharg Discharge pollutant
Name and discha discha of amount of discharge
characteristic e method concentration discharge
pollutant rge rge discharg discharge or not
pollutants standard
characteri outlets outlet e
stics s
Co. Ltd.Shandong
NHU Fine
Filtered
ChemicalScien atmospheri Plant
NOx dischar 3 30.67mg/m3 100 mg/m3 6.93t ≤37.61 t/a No
ce and c pollutant area
ge
Technology
Co. Ltd.Shandong
NHU Fine
Filtered
ChemicalScien atmospheri Plant
PM dischar 2 4.13mg/m3 10 mg/m3 0.69t ≤5.544 t/a No
ce and c pollutant area
ge
Technology
Co. Ltd.Shandong
NHU Fine
Filtered
ChemicalScien atmospheri Plant
PM dischar 7 12.98mg/m3 30 mg/m3 8.279t ≤26.515 t/a No
ce and c pollutant area
ge
Technology
Co. Ltd.Shandong
NHU Fine
Filtered
ChemicalScien atmospheri Plant
NOx dischar 1 93 mg/m3 200 mg/m3 35.72t ≤99.11 t/a No
ce and c pollutant area
ge
Technology
Co. Ltd.Shandong
NHU Fine
Filtered
ChemicalScien atmospheri Plant
SO? dischar 1 40mg/m3 200mg/m3 28.55t ≤128.16 t/a No
ce and c pollutant area
ge
Technology
Co. Ltd.Shandong
NHU Fine
Filtered
ChemicalScien atmospheri Plant
VOC dischar 9 10.3mg/m3 150 mg/m3 13.018t ≤124.2 t/a No
ce and c pollutant area
ge
Technology
Co. Ltd.Shandong
NHU Fine
Sewer
ChemicalScien water Plant ≤2114.1824
COD connect 1 135mg/L 350mg/L 539.39t No
ce and pollutant area t/a
ion
Technology
Co. Ltd.Shandong
NHU Fine
Sewer
ChemicalScien water Plant ≤248.21384
NH3-N connect 1 2.35mg/L 45mg/L 9.87t No
ce and pollutant area t/a
ion
Technology
Co. Ltd.
662024 Annual Report of Zhejiang NHU Co. Ltd.
Construction and operation of pollution prevention and control facilities
The Company has established the environmental protection concept of green development: 1. Introducing the concept of green
chemistry developing and producing products that are more environment-friendly. 2. Transferring from support-orientation to
responsibility-orientation to conduct source reduction process control and end-of-pipe treatment properly. 3. Pursuing reduction
recycling and harmlessness to create ecological factories and realize the harmonious development of man and nature.Wastewater treatment: The company has a perfect sewage treatment system; there are production sewage domestic sewage initial
rainwater accident water and other wastewater collection system so as to achieve clean sewage diversion rain and sewage diversion.The waste water pool is sealed with a cover and all the waste gases are effectively collected and finally incinerated which effectively
reduces the emission of waste gases.Exhaust gas treatment: The company adopts self-developed nitrogen sealing system to effectively reduce the exhaust gas emission;
according to the composition and nature of different exhaust gases it adopts different pre-treatment technologies; at the same time the
company introduces advanced exhaust gas treatment devices from abroad which strengthens the capacity of exhaust gas treatment.Regularly carry out exhaust gas leakage detection and repair (LDAR) every year; the company continues to implement the construction
of odorless factories comprehensive exhaust gas treatment and solve the problem of odor at the factory boundaries; in 2024 it will
comprehensively investigate the points of unorganized leakage and incorporate them into the management and control and carry out
comprehensive supervision and emission reduction of unorganized exhaust gases.Solid Waste Disposal: The company has a standardized hazardous waste storage warehouse and hazardous waste incineration device
and the company basically disposes of hazardous waste by itself. The company basically disposes of the hazardous waste by itself. Theoutsourced hazardous waste is transferred in strict accordance with the requirements of “Management Measures for the Transfer ofHazardous Wastes” and entrusted to qualified units to deal with.Noise prevention and control: low-noise equipment is selected and the noise reduction measures of foundation damping are adopted
for the equipment that does not need to be fixed; in addition to foundation damping for the air compressor blower and various pumps
a sound insulation cover is also added around the noise source for sound insulation.Emergency management: installing exhaust gas online monitor around the plant boundary real-time monitoring of the plant
environment; introducing VOC online monitor real-time monitoring of the emission of exhaust gas data test data uploaded to the
monitoring platform; wastewater one enterprise one pipe online monitoring of wastewater emission indexes real-time monitoring
normal uploading to the Environmental Protection Bureau; the introduction of first-class pressure leakage plugging technology in China
will be the pipelines valves flanges tanks appearing abnormal The introduction of domestic first-class pressure leakage plugging
technology reduces the abnormal leakage of pipelines valves flanges and tanks to the minimum thus reducing the impact on the
environment caused by a large number of leaks.Environmental self-monitoring program
The company has good management capacity for monitoring pollutant emissions and is able to inform the environmental protection
administrative authorities and the public of monitoring information in a timely manner. The company has formulated relevant self-
testing program and the monitoring program covers all indicators of the company's organized exhaust gas non-organized exhaust gas
and noise. Meanwhile it commissions a third-party testing company to carry out regular monitoring. The company implements
environmental information disclosure in strict accordance with the requirements of the state province city and county on
environmental information disclosure of enterprises.Environmental emergency response plan
On February 1 2024 Shandong NHU Pharmaceutical Co. Ltd. re-filed the emergency response plan for environmental emergencies.On April 8 2024 The Company re-filed the emergency plan for environmental emergencies.On September 3 2024 Shangyu NHU Biochemical Co. Ltd. re-filed the emergency plan for environmental emergencies.Investment in environmental treatment and protection and payment of environmental protection tax
672024 Annual Report of Zhejiang NHU Co. Ltd.
During the reporting period the company invested RMB 539.19million in environmental protection treatment and paid environmental
protection tax of RMB 2.28 million.Measures taken to reduce carbon dioxide emissions during the reporting period and their effects
√ Applicable □ Not applicable
In the research and development of new products carbon emission of 10000 yuan output value is taken as an important index of the
process route and environmental feasibility assessment of new products and the research and development of new products applies the
green development technology improves the utilization rate of atoms and reduces the carbon emission generated by the consumption
of raw materials from the source. The photovoltaic power generation in the subsidiary plant is running normally.Administrative penalties for environmental problems during the reporting period
Impact on the
Rectification
Reasons for Results of production and
Name Violations measures of the
punishment punishment operation of the
Company
Company
N/A N/A N/A N/A N/A N/A
Other environmental information that should be disclosed
None.Other information related to environmental protection
None.II. Social responsibilities
Please refer to the announcement disclosed on http://www.cninfo.com.cn on April 15 2025 for the full text of the
“Environmental Social and Corporate Governance (ESG) Report of 2024”.III. Details on consolidating poverty alleviation achievements and promoting rural vitalization
None.
682024 Annual Report of Zhejiang NHU Co. Ltd.
Section VI 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
Commitments Parties making Types of Content of commitments Time of Term of Performance
commitments commitments commitment commitment
Commitments None None None None None None
to share reform
Commitments
made in reports
on acquisition None None None None None None
and changes in
equity
Commitments
made in asset None None None None None None
restructuring
NHU HoldingGroup Co. Ltd. The signing of “CommitmentCommitments
and Zhang Pingyi on No Engagement in
on horizontalShi Cheng Yuan Horizontal Competition” and
competition
Yizhong Hu commitments on no Strictly
related party June 25 2004 Long-term
Baishan Shi engagement in business performed
transactions and
Guanqun Wang activities result in horizontal
occupation of
Xuewen Cui competition with operations of
funds
Xinrong Wang the Company after listing
Xulin
The Company's directorsand
senior executives committed to
perform their duties faithfully
and diligently to safeguard the
legitimate rights and interests
of the Company and
shareholders and make the
following commitments in
accordance with the relevant
provisions of the CSRC for the
Commitments
full performance of measures
made in IPO or
on filling immediate returns: 1.refinancing
not to transfer benefits to other
Hu Baifan; Hu
entities or individuals without
Baishan;
compensation or on unfair
Guanqun; Wang
terms and not to use other January 12 Long-term Strictly Xuewen; Cui
means to harm the benefits of 2017 performed
Xinrong; Wang
the Company; 2. to impose
Zhengjiang; Zhou
restrictions on duty
Guiyang
consumption of members of the
Board of Directors and senior
executives; 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
692024 Annual Report of Zhejiang NHU Co. Ltd.
Commitments Parties making Types of Content of commitments Time of Term of Performance
commitments commitments commitment commitment
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 activities in
Hu Baifan; NHU
excess of authority; not to January 12 Long-term Strictly Holding Group
encroach on benefits of the 2017 performed
Co. Ltd.Company; to perform measures
on filling immediate returns in
a practical way.Commitments
to equity None None None None None None
incentive
Other
commitments to
small and None None None None None None
medium-sized
shareholders of
the Company
Other
commitments to
minority None None None None None None
shareholders of
the Company
Whether commitments are performed on time Yes
If commitment performance is not fulfilled on time please explain detailed reasons for it and the next work plans. N/A
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
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 “Modified Auditor’s Report”
□ Applicable √ Not Applicable
V. Statements by the Board of Directors the Board of Supervisors and independent directors
(if applicable) on the “Modified Auditor’s Report” issued by the accounting firm during the
reporting period
□ Applicable √ Not Applicable
702024 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
company identification Methods of equity acquisition Point of acquisition
Qionghai Bo'ao Lidu Real Estate Co. Ltd. disposal June 21 2024
Tianjin NHU Materials Technology Co. Ltd. establish June 7 2024
Cong Ty Tnhh NHU Vietnam establish October 7 2024
NHU Life Science GmbH establish October 31 2024
NHU JAPAN CO. LTD. establish November 8 2024
VIII. Engagement and dismissal of accounting firms
Domestic accounting firms engaged currently
Name Pan-China Certified Public Accountants LLP
Remuneration (thousand yuan) 2.1million (tax included)
Continuous years for audit services 24 yesrs
Certified Public Accountants Teng Peibin Jan Yanhui
Certified Public Accountants’ continuous years for audit
5 years for Teng Peibin and 3 yesrs for Jan Yanhui
services
Whether to engage another accounting firm instead in the current period
□ Yes √ No
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 and arbitration during the reporting period.
712024 Annual Report of Zhejiang NHU Co. Ltd.
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.
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 is no related creditor’s 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.
722024 Annual Report of Zhejiang NHU Co. Ltd.
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.
2. Significant guarantees
√ Applicable □ Not Applicable
Unit: RMB 0000 yuan
External guarantees by the Company and its subsidiaries to third parties (guarantees to subsidiaries are excluded)
Announcem Wheth
Actual Types Coll Counter
ent date of Amount Actual er the Whether
Guaranteed amount of atera guarant Period of
disclosure guarante commenceme guaran guarantee for
parties guarante guarant ls (if ees (if guarantee
of amount ed nt date tee is related parties
ed ees any) any)
guaranteed mature
No
Total amount actually
Total amount of guarantees approved
0 guaranteed during the 0
during the reporting period (A1)
reporting period (A2)
Total amount actually
Total amount of guarantees approved at the
0 guaranteed at the end of 0
end of the reporting period (A3)
the reporting period (A4)
The Company’s guarantees to subsidiaries
Announcem Wheth
Actual Types Coll Counter
ent date of Amount Actual er the Whether
Guaranteed amount of atera guarant Period of
disclosure guarante commenceme guaran guarantee for
parties guarante guarant ls (if ees (if guarantee
of amount ed nt date tee is related parties
ed ees any) any)
guaranteed mature
Shandong NHU
Joint and
Fine
several
ChemicalScienc 3/24/2021-
5/22/2020 50000 3/24/2021 50000 liability No No
e and 12/25/2025
guarante
Technology
e
Co.Ltd
Joint and
Heilongjiang
several
NHU 8/26/2021-
4/22/2021 40000 8/26/2021 37000 liability No No
Biotechnology 12/21/2025
guarante
Co. Ltd.e
732024 Annual Report of Zhejiang NHU Co. Ltd.
Joint and
Zhejiang NHU
several
Imports & 6/16/2023-
5/20/2023 25000 6/16/2023 10000 liability Yes No
Exports Co. 6/15/2024
guarante
Ltd.e
Joint and
Xinchang NHU several
12/16/2021-
Vitamins Co. 4/22/2021 40000 12/16/2021 29000 liability No No
12/25/2026
Ltd. guarante
e
Joint and
NHU (Hong several
6/12/2023-
Kong) Trading 5/20/2023 100000 6/12/2023 16.11 liability Yes No
3/1/2024
Co. Ltd. guarante
e
Joint and
NHU (Hong several
8/4/2023-
Kong) Trading 5/20/2023 100000 8/4/2023 98.76 liability Yes No
5/1/2024
Co. Ltd. guarante
e
Joint and
NHU (Hong several
9/26/2023-
Kong) Trading 5/20/2023 100000 9/26/2023 27.09 liability Yes No
6/1/2024
Co. Ltd. guarante
e
Joint and
NHU (Hong several
12/5/2023-
Kong) Trading 5/20/2023 100000 12/5/2023 4.07 liability Yes No
9/1/2024
Co. Ltd. guarante
e
Joint and
NHU (Hong several
3/12/2024-
Kong) Trading 5/20/2023 100000 3/12/2024 131.81 liability Yes No
12/01/2024
Co. Ltd. guarante
e
Joint and
NHU (Hong several
06/05/2024-
Kong) Trading 5/16/2024 50000 6/5/2024 106.39 liability No No
05/15/2025
Co. Ltd. guarante
e
Joint and
NHU (Hong several
08/29/2024-
Kong) Trading 5/16/2024 50000 8/29/2024 50.97 liability No No
05/15/2025
Co. Ltd. guarante
e
Joint and
NHU (Hong several
11/19/2024-
Kong) Trading 5/16/2024 50000 11/19/2024 37.38 liability No No
08/19/2025
Co. Ltd. guarante
e
Joint and
Zhejiang NHU several
06/24/2022-
Pharmaceutical 5/11/2022 60000 6/24/2022 55000 liability No No
06/23/2027
Co. Ltd guarante
e
Xinchang NHU Joint and 10/14/2022-
5/11/2022 20000 10/14/2022 18000 No No
Vitamins Co. several 10/14/2027
742024 Annual Report of Zhejiang NHU Co. Ltd.
Ltd. liability
guarante
e
Joint and
NHU (Hong several
6/12/2023-
Kong) Trading 5/20/2023 100000 6/12/2023 7907.24 liability Yes No
6/12/2024
Co. Ltd. guarante
e
Joint and
NHU (Hong several
06/12/2024-
Kong) Trading 5/16/2024 50000 6/12/2024 7907.24 liability No No
06/12/2025
Co. Ltd. guarante
e
Shandong NHU
Joint and
Fine
several
ChemicalScienc 6/6/2023-
5/20/2023 58600 6/6/2023 58600 liability No No
e and 3/29/2028
guarante
Technology Co.e
Ltd.Joint and
NHU (Hong several
11/8/2023-
Kong) Trading 5/20/2023 100000 11/20/2023 57507.2 liability No No
11/8/2026
Co. Ltd. guarante
e
Joint and
Zhejiang NHU
several
Imports & 06/24/2024-
5/16/2024 25000 6/24/2024 15000 liability No No
Exports Co. 06/23/2025
guarante
Ltd.e
Joint and
NHU (Hong several
08/01/2024-
Kong) Trading 5/16/2024 50000 8/1/2024 35942 liability No No
08/01/2027
Co. Ltd. guarante
e
Total amount
Total amount of guarantees actually guaranteed
approved for subsidiaries during 175000.00 for subsidiaries 59175.79
the reporting period (B1) during the reporting
period (B2)
Total amount
actually guaranteed
Total amount of guarantees
for subsidiaries at
approved for subsidiaries at the 480107.20 364151.18
the end of the
end of the reporting period (B3)
reporting period
(B4)
Guarantees by subsidiaries to subsidiaries
Announcem Wheth
Amount Types Coll Counter
ent date of Amount Actual er the Whether
Guaranteed actually of atera guarant Period of
disclosure guarante commenceme guaran guarantee for
parties guarante guarant ls (if ee (if guarantee
of amount ed nt date tee is related parties
ed ees any) any)
guaranteed mature
NO
Total amount of guarantees Total amount
approved for subsidiaries during 0 actually guaranteed 0
the reporting period (C1) for sub-sidiaries
752024 Annual Report of Zhejiang NHU Co. Ltd.
during the reporting
period (C2)
Total amount
actually guaranteed
Total amount of guarantees
for subsidiaries at
approved for subsidiaries at the 0 0
the end of the
end of the reporting period (C3)
reporting period
(C4)
Total amount guaranteed by the Company (namely sum of the above three items)
Total amount
Total amount of guarantees
actually guaranteed
approved during the reporting 175000.00 59175.79
during the reporting
period (A1+B1+C1)
period (A2+B2+C2)
Total amount
Total amount of guarantees actually guaranteed
approved at the end of the 480107.20 at the end of the 364151.18
reporting period (A3+B3+C3) reporting period
(A4+B4+C4)
Proportion of the amount actually guaranteed (A4+B4+C4)
12.42%
to net assets of the Company
Including:
Balance of guarantees for shareholders the actual controller
0
and its related parties (D)
Balance of debt guarantee directly or indirectly for
309151.18
guaranteed parties with debt to asset ratio exceeding 70% (E)
The amount of the total amount guaranteed exceeding 50%
0
of net assets (F)
Total amount guaranteed of three items above (D+E+F) 309151.18
Remarks on unexpired guarantee contracts with guarantee
liabilities incurred or evidence indicating the possibility of无
undertaking joint liquidation liabilities during the reporting
period (if applicable)
Remarks on external guarantee in violation of provisions (if无
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: RMB 0000 yuan
Impairment
amount accrued
Source of Amount overdue
Types Entrusted amount Unexpired balance for financial
entrusted funds and not recovered
products overdue
and not recovered
Bank financial
Raised funds 14500 0 0 0
products
Total 14500 0 0 0
762024 Annual Report of Zhejiang NHU Co. Ltd.
High-risk entrusted financial products with individual significant amount or low security and poor liquidity
□ Applicable √ Not Applicable
When the principal of entrusted financial products is expected to be irrevocable or there are other conditions result in impairment of
entrusted financial products
□ 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. Other significant events
√ Applicable □ Not Applicable
1. Progress of investment projects with raised funds
With the approval of [2017] No. 1684 document of China Securities Regulatory Commission the company's lead underwriter CSC
Securities Co. Ltd. privately issued 175 million common shares (A shares) to specific objects at an issue price of RMB 28.00/share
raising a total of RMB 4900 million. After deducting the underwriting and recommendation fees of RMB 30 million yuan (including
tax) the raised funds amounted to RMB 4870 million which was remitted to the raised funds supervision account of the company by
the lead underwriter CSC Securities Co. Ltd. on December 7 2017. In addition after deducting lawyer fees audit fees capital
verification fees and other issuance expenses of RMB 4.62 million (excluding tax) and considering the deductible VAT input tax of
RMB 1.70 million of underwriting fees and recommendation fees deducted by the lead underwriter the net amount of funds raised was
RMB 4867.08 million. The availability of the above raised funds has been verified by Tianjian Certified Public Accountants (special
general partnership) who issued the capital verification report ([2017] No. 503).The Company convened the third meeting of the ninth Board of Directors and the third meeting of the ninth Board of Supervisors
which reviewed and approved the Proposal on Completing the Raised Funds Investment Project and Permanently Replenishing
Working Capital with Surplus Raised Funds. To enhance the efficiency of using surplus raised funds the Company agreed to complete
the “250000 Tons Annual Output Methionine Project” a project funded by the 2017 non-public offering of shares and permanently
replenish working capital with the surplus raised funds. During the reporting period the balance in the dedicated raised funds account
was transferred to the Company's general settlement account and the relevant procedures for canceling the dedicated raised funds
account were completed. Concurrently the regulatory agreements on raised funds signed by the Company and its subsidiaries with the
sponsoring institution and the commercial bank where the raised funds were deposited were terminated. For details please refer to the
Announcement on Completion of Cancellation of Dedicated Raised Funds Account (2024-024) published by the Company on the
designated information disclosure media and and http://www.cninfo.com.cn.
2. Progress of the controlling shareholder in increasing the company's shares
Based on confidence in the Company's future sustainable and stable development and recognition of its value to enhance investor
confidence the Company's controlling shareholder NHU Holding Group Co. Ltd. plans to increase its shareholdings in the Company
within 6 months starting from October 262023 through methods permitted by the Shenzhen Stock Exchange trading system (including
but not limited to centralized bidding and block trading). The intended share purchase amount shall be no less than RMB 200 million
and no more than RMB 300 million. No price range is set for this plan which will be implemented progressively based on the volatility
of the Company's stock price and the overall capital market trends. As of March 15 2024 NHU Holding Group has cumulatively
purchased 17869906 shares of the Company representing 0.58% of the total share capital with a cumulative investment of RMB
299656526.16(excluding transaction fees). This share increase plan has been fully implemented. For details please refer to the
Announcement on the Implementation Results of the Controlling Shareholder's Share Increase Plan (2024-003) published on the
Company's designated information disclosure platforms and the http://www.cninfo.com.cn.
3. External Investment and Signing of the Investment Cooperation Agreement
The Company convened the sixth meeting of the ninth Board of Directors on July 17 2024 and held the first extraordinary general
meeting of 2024 on August 2 2024 which reviewed and approved the Proposal on External Investment and Signing the Investment
772024 Annual Report of Zhejiang NHU Co. Ltd.
Cooperation Agreement. The Company agreed to enter into the Investment Cooperation Agreement with the Tianjin Economic-
Technological Development Area Management Committee to invest in the construction of the Nylon New Materials Project in Tianjin
Nangang Industrial Zone with a total investment of approximately RMB 10 billion (subject to actual investment). For details please
refer to the relevant announcements published by the Company on the designated information disclosure media and
http://www.cninfo.com.cn on July 18 2024 and August 3 2024.
4. Progress of the fourth employee stock ownership plan
The fourth phase of the Employee stock ownership Plan of the Company was reviewed and approved by the first extraordinary General
meeting of shareholders 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. As of
September 25 2023 a total of 29528181 shares of the Company have been purchased under the fourth phase of the employee stock
ownership Plan through the secondary market bidding transaction accounting for 0.9553% of the Company's total share capital at that
time with a total transaction amount of 479442157.08 yuan (excluding transaction costs). The average transaction price was about
16.2368 yuan per share and the company completed the target stock purchase of the fourth phase of the employee stock ownership
plan. The lock-up period of the underlying shares acquired under the fourth Employee Stock Ownership Plan is 12 months calculated
from the date of the Company's announcement of the transfer of the last underlying shares to the plan. As of September 25 2024 the
lock-up period for the Phase IV Employee Stock Ownership Plan has expired.For details please refer to the Announcement on the
Expiry of the Lock-up Period for the Fourth Phase Employee Stock Ownership Plan (2024-035) published by the Company on
designated information disclosure media and http://www.cninfo.com.cn.(Note: On December 13 2024 the Company completed the cancellation of 17485676 repurchased shares reducing the total number
of shares outstanding 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 shares outstanding.)
5. Modification of the Designated Use of Repurchased Shares and Subsequent Cancellation
The Company convened the Ninth Meeting of the Ninth Board of Directors on November 18 2024 and the Second Extraordinary
General Meeting of 2024 on December 4 2024. Both meetings approved the Proposal on Adjusting the Purpose of Repurchased Shares
and Cancellation. This resolution modifies the original purpose of the share repurchase plan approved on August 18 2021 changing
the designated use of repurchased shares from "implementing equity incentive plans or employee stock ownership plans" to
"cancellation and reduction of registered capital". Specifically 17485676 shares in the Company's special securities account for
repurchase were cancelled thereby reducing the registered capital by RMB 17485676.The Shenzhen Branch of China Securities
Depository and Clearing Co Ltd. confirmed the cancellation date as December 13 2024. Post-cancellation the Company’s total
share capital decreased from 3090907356 shares to 3073421680 shares. Detailed information is available in the Company’s
announcements published on designated media and http://www.cninfo.com.cn.
6. Special dividend plan
The Company passed the “Proposal on Special Dividend Program” at the 10th Meeting of the 9th Board of Directors held on December
18 2024 and the 1st Extraordinary General Meeting of 2025 held on January 7 2025. In order to positively respond to the “Opinionsof the State Council on Strengthening Supervision and Preventing Risks and Promoting the High-Quality Development of the CapitalMarket” regarding the relevant regulations and policy spirit such as “Enhancing the stability continuity and predictability of dividendspromoting multiple dividends a year pre-dividends dividends before the Spring Festival” based on the confidence in the future
development of the Company in order to enhance the value of the Company's investment share the results of the Company's operation
and development with the majority of investors and enhance the sense of achievement of investors under the premise of ensuring the
Company's sustainable and sound operation and long-term development the proposed special dividend program has been implemented
with a total of 3000 shares of the existing share capital of the Company. Based on the existing total share capital of 3073421680
shares the Company hasl distributed a cash dividend of RMB2 (including tax) for every 10 shares to all shareholders and send 0 bonus
shares (including tax) and will not increase share capital by capitalization of capital reserve. A total of RMB614684336.00 in cash
has been distributed and the remaining profit available for distribution to shareholders of RMB4952393846.00 has been carried
forward to the next year.If the total share capital of the Company changes before the implementation of the program due to convertible bonds conversion share
repurchase exercise of share incentives listing of new shares from refinancing etc. the total amount to be distributed will be adjusted
accordingly in accordance with the principle of unchanged distribution ratio.The special dividend entitlement distribution was completed on January 22 2025. For details please refer to the relevant
announcements published by the Company in the designated information disclosure media and http://www.cninfo.com.cn.XVII. Significant events of subsidiaries of the Company
□ Applicable √ Not Applicable
782024 Annual Report of Zhejiang NHU Co. Ltd.
Section VII Movements in Shares and Conditions of Shareholders
I. Movements in shares
1. Details
Unit: Share
Before Movements After
Items Issue of Reserve
Quantity % to Bonus new transferred to Others Subtotal Quantity % to total
total shares
shares shares
I. Restricted shares 36409752 1.18% 36409752 1.18%
1. Held by other
364097521.18%364097521.18%
domestic parties
Including: Held by
364097521.18%364097521.18%
domestic natural persons
II. Unrestricted shares 3054497604 98.82% -17485676 -17485676 3037011928 98.82%
1. RMB ordinary shares 3054497604 98.82% -17485676 -17485676 3037011928 98.82%
III. Total 3090907356 100.00% -17485676 -17485676 3073421680 100.00%
Reason for movements
√ Applicable □ Not Applicable
On December 13 2024 the Company cancelled 17485676 shares that had been repurchased and upon completion of the cancellation
the total share capital of the Company changed from 3090907356 shares to 3073421680 shares.Approval on movements in shares
√ Applicable □ Not Applicable
The Company held the Ninth Meeting of the Ninth Session of the Board of Directors on November 18 2024 and the SecondExtraordinary General Meeting of 2024 on December 4 2024 and considered and passed the “Proposal on Changing the Purpose ofthe Repurchased Shares and Cancelling Them” and agreed to change the purpose of the repurchased shares in the proposal for the
repurchase of the Company's shares considered and passed on August 18 2021 from the original proposal of Change the use of therepurchased shares from the original plan of “using the repurchased shares for the implementation of the Share Incentive Scheme orthe Employee Share Ownership Scheme” to “using the repurchased shares for the purpose of cancellation and reduction of registeredcapital” i.e. canceling 17485676 shares in the Company's repurchased special securities account and reducing the Company's
registered capital by 17485676 shares accordingly. 17485676 Yuan. After the cancellation the total share capital of the Company
will be changed from 3090907356 shares to 3073421680 shares. For details please refer to the relevant announcements published
by the Company in the designated information disclosure media and on the Cninfo (http://www.cninfo.com.cn).Transfer of shares
□ Applicable √ Not Applicable
Effect of movements in shares on financial indicators of preceding year and preceding period such as basic EPS and diluted EPS net
assets per share attributable to shareholders of ordinary shares
□ Applicable √ Not Applicable
Other contents the Company considered as necessary or securities regulatory institutions required disclosure
□ Applicable √ Not applicable
792024 Annual Report of Zhejiang NHU Co. Ltd.
2. Movement in restricted shares
□ Applicable √ Not applicable
II. Issuance and listing of securities
1. Issuance of securities (preferred shares 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
The Company held the Ninth Meeting of the Ninth Session of the Board of Directors on November 18 2024 and the SecondExtraordinary General Meeting of 2024 on December 4 2024 and considered and passed the “Proposal on Changing the Purpose ofthe Repurchased Shares and Cancelling Them” and agreed to change the purpose of the repurchased shares in the proposal for therepurchase of the Company's shares considered and passed on August 18 2021 from the original proposal of “repurchasing shares forthe implementation of the share incentive plan or the employee shareholding plan” to “for cancellation and reduction of registeredcapital”. Change of the use of the repurchased shares from the original plan to “use the repurchased shares for the implementation ofthe Share Incentive Scheme or the Employee Stock Ownership Plan” to “use the repurchased shares for the purpose of cancellationand reduction of registered capital”. In other words 17485676 shares in the special securities account of the Company were canceled
and the registered capital of the Company was reduced by RMB17485676 accordingly. After the cancellation the total share capital
of the Company will be changed from 3090907356 shares to 3073421680 shares. For details please refer to the relevant
announcements published by the Company in the designated information disclosure media and (http://www.cninfo.com.cn).III. Shareholders and actual controllers
1. Number of shareholders of the Company and their shareholding conditions
Unit: Share
Total number of
Total number of
preferred shareholders
Total number of ordinary Total number of
whose voting rights
ordinary shareholders at the preferred shareholders
were restored at the end
shareholders at the 83287 end of the previous 77933 whose voting rights 0 0
of the previous month
end of the reporting month prior to the were restored at the end
prior to the date of
period date of disclosure of of the reporting period
disclosure of the annual
the annual report
report
Shareholders with holding proportion over 5% or the top 10 shareholders with largest holding proportions
Quantity of Shares pledged
ordinary Movements marked or frozen
Quantity of Quantity of
Nature of Holding shares at the during the
Shareholders restricted unrestricted
shareholders proportion end of the reporting Qua
shares shares Condition
reporting period ntity
period
Domestic
NHU Holding Group non-state-
50.08% 1539232431 2823080 0 1539232431 N/A 0
Co. Ltd. owned legal
person
802024 Annual Report of Zhejiang NHU Co. Ltd.
Hong Kong
Overseas
Securities Clearing 4.48% 137823659 38340662 0 137823659 N/A 0
legal person
Company Limited
National Social
Security Fund Others 1.33% 41000000 -100 0 41000000 N/A 0
No.503 Portfolio
The Company－
Employee stock
Others 0.96% 29528181 0 0 29528181 N/A 0
ownership plan
phase IV
China Construction
Bank Corporation -
E Fund Shanghai
and Shenzhen 300 Others 0.93% 28498582 5498905 0 28498582 N/A 0
Medical and Health
Trading Open-end
Index Fund
Shanghai
Chongyang Strategic
Investment Co. Ltd.Others 0.88% 26930663 -27141537 0 26930663 N/A 0
－ Chongyang
Strategic Huizhi
Fund
Industrial and
Commercial Bank of
China Limited-
Others 0.87% 26626541 15044382 0 26626541 N/A 0
Huatai Berry CSI
300 Open-ended
Index Fund
Shanghai
Chongyang Strategic
Investment Co. Ltd.Others 0.62% 19150780 13961450 0 19150780 N/A 0
－ Chongyang
Strategic Caizhi
Fund
China Construction
Bank Corporation -
Efounda CSI 300 Others 0.60% 18397231 14102000 0 18397231 N/A 0
Open-End Index
Initiated Fund
Shanghai
Chongyang Strategic
Investment Co. Ltd. Others 0.49% 15096694 10685022 0 15096694 N/A 0
－ Chongyang
Strategic Juzhi Fund
Strategic investors or ordinary legal persons that Shanghai Chongyang Strategic Investment Co. Ltd. － Chongyang Strategic Huizhi
became one of the top 10 shareholders due to the Fund became one of the top 10 shareholders with largest holding proportions due to its
allotment of new shares participation in private placement of shares in 2017.The Company does not know whether other shareholders have relationships and whether
Remarks on relationships or concerted action
between the top 10 shareholders with largest they are persons acting in concert as defined in Administration of the Takeover of Listed
holding proportions Companies Procedures.Remarks on proxy voting and waiver of voting N/A
right of the above shareholders
Special remarks on top 10 shareholders with special
repurchase accounts N/A
Top 10 shareholders with unrestricted shares (excluding shares lent through transfer facility and shares locked up by executives)
Quantity of unrestricted shares at the end of Category of shares
Shareholders
the reporting period Category Quantity
NHU Holding Group Co. Ltd. 1539232431 RMB ordinary shares 1539232431
Hong Kong Securities Clearing Company Limited 137823659 RMB ordinary shares 137823659
812024 Annual Report of Zhejiang NHU Co. Ltd.
National Social Security Fund Five03 Portfolio 41000000 RMB ordinary shares 41000000
Zhejiang NHU Company Limited - Fourth
29528181 RMB ordinary shares 29528181
Employee Stock Ownership Plan
China Construction Bank Corporation-Efounda CSI
300 Pharmaceutical and Healthcare Traded Open- 28498582 RMB ordinary shares 28498582
End Index Fund
Shanghai Chongyang Strategic Investment
Company Limited - Chongyang Strategic 26930663 RMB ordinary shares 26930663
Intelligence Fund
Industrial and Commercial Bank of China Limited-
26626541 RMB ordinary shares 26626541
Huatai Berry CSI 300 Open-ended Index Fund
Shanghai Chongyang Strategic Investment
Company Limited - Chongyang Strategic Caizhi 19150780 RMB ordinary shares 19150780
Fund
China Construction Bank Corporation - Efounda
18397231 RMB ordinary shares 18397231
CSI 300 Open-End Index Initiated Fund
Shanghai Chongyang Strategic Investment
Company Limited - Chongyang Strategic Juzhi 15096694 RMB ordinary shares 15096694
Fund
Among the above shareholders Hu Baishan is the director of NHU Holding Group Co.Remarks on relationships or concerted action
Ltd. Due to participating in Employee stock ownership plan phase IV Hu Baishan
between the top 10 shareholders with unrestricted
formed an association relationship with The Company－Employee stock ownership plan
shares and between the top 10 shareholders with
phase IV. The Company does not know whether other shareholders have relationships
unrestricted shares and the top 10 shareholders with
and whether they are persons acting in concert as defined in Administration of the
largest holding proportions.Takeover of Listed Companies Procedures.Shanghai Chongyang Strategic Investment Co. Ltd. － Chongyang Strategic Huizhi
Fund holds 2693056 shares through a client account of collateral securities for margin
trading of Guotai Junan Securities Co. Ltd.; Shanghai Chongyang Strategic Investment
Remarks on top 10 shareholders of ordinary shares Co. Ltd - Chongyang Strategic Caizhi Fund holds 19150780 shares through a client
participating in securities margin trading credit transaction guarantee securities account at China Merchants Securities Co;
Shanghai Chongyang Strategic Investment Co. Ltd - Chongyang Strategic Juzhi Fund
held 15096694 shares through a client credit transaction guarantee securities account of
China Merchants Securities Co.The participation of shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders with unlimited
shares in circulation in lending of shares in the transfer and financing business
√Applicable □ Not applicable
Unit: Share
The participation of shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders with unlimited shares
in circulation in lending of shares in the transfer and financing business
Shares borrowed for
Holdings in ordinary Shares borrowed for
securities lending at the Holdings in ordinary
account and credit securities lending at the
beginning of the period account and credit account
account at the beginning end of the period and have
Shareholder name (full and have not yet been at the end of the period
of the period not yet been returned
name) returned
Ratio to Ratio to Ratio to Ratio to
Total Total Total Total
total share total share total share total share
quantity quantity quantity quantity
capital capital capital capital
Industrial and
Commercial Bank of
China Limited - Huatai 11582159 0.37% 35600 0.00% 26626541 0.87% 0 0.00%
Berry CSI 300 Index
Fund
China Construction
Bank Corporation -
Efonda CSI 300 Open- 4295231 0.14% 30900 0.00% 18397231 0.60% 0 0.00%
End Index Initial
Investment Fund
China Construction 22999677 0.74% 252800 0.01% 28498582 0.93% 0 0.00%
822024 Annual Report of Zhejiang NHU Co. Ltd.
The participation of shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders with unlimited shares
in circulation in lending of shares in the transfer and financing business
Shares borrowed for
Holdings in ordinary Shares borrowed for
securities lending at the Holdings in ordinary
account and credit securities lending at the
beginning of the period account and credit account
account at the beginning end of the period and have
Shareholder name (full and have not yet been at the end of the period
of the period not yet been returned
name) returned
Ratio to Ratio to Ratio to Ratio to
Total Total Total Total
total share total share total share total share
quantity quantity quantity quantity
capital capital capital capital
Bank Corporation -
Efonda CSI 300
Pharmaceuticals &
Health Care Index
Fund
Top 10 shareholders and top 10 shareholders with unlimited shares outstanding Change from the previous period due to
lending/returning of convertible bonds
□ Applicable √ Not applicable
2. Controlling shareholders
Nature of shareholders: Natural person holding
Category of shareholders: Legal person
Holding shareholders Legal representative/ Date of establishment Unified social credit Main business scope
Head of the entity code
Industrial investments
goods import and export;
NHU Holding Group Co. production and sales of
Hu Baifan 2/14/1989 91330624146424869T chemical products
Ltd.pharmaceutical
intermediates chemical
materials
Equity conditions of other
domestic and overseas listed
NHU Holding Group Co. Ltd. directly holds 36.73% of the shares of Front Pharmaceutical PLC.companies that the holding
shareholders control or Pharmaceutical Co. Ltd.participate in during the
reporting period
Changes of holding shareholders during the reporting period
□ Applicable √ Not applicable
The Company has no changes of holding shareholders during the reporting period.
3. Actual controllers and persons acting in concert
Nature of actual controller: Domestic natural persons
Category of actual controller: Natural persons
Actual controller Relationship with the Nationality Whether has permanent residence in other
actual controller countries or regions
Hu Baifan Self China No
Person acting in
concert (including the
Hu Baishan following forms: China No
agreement relatives
common control)
Main occupation and position Mr. Hu Baifan Chairman of the Board is a Chinese born in 1962 who has no permanent
832024 Annual Report of Zhejiang NHU Co. Ltd.
residence in foreign countries or regions. He has a master's degree in Business
Administration from Zhejiang University and he is 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 NHU Real Estate Holding 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 EMBA
program of Zhejiang University and he is 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 main
companies once been under their
board of Shanghai Stock Exchange in 2022.control within a decade
Changes of actual controller within the reporting period
□ Applicable √ Not applicable
The Company has no changes in actual controller within the reporting period.Block diagram of title and control relationships between the Company and the actual controller
842024 Annual Report of 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
852024 Annual Report of Zhejiang NHU Co. Ltd.
5. Other legal person shareholders 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
IV. Actual implementation of share repurchase during the reporting period
Actual progress of share repurchase
□Applicable √ Not applicable
Implementation progress of shareholding reduction for shares repurchased through centralized bidding
□ Applicable √ Not applicable
862024 Annual Report of Zhejiang NHU Co. Ltd.
Section VIII Preferred Shares
□ Applicable √ Not applicable
The Company has no preferred shares during the reporting period.
872024 Annual Report of Zhejiang NHU Co. Ltd.
Section IX Bonds
□ Applicable √ Not applicable
882024 Annual Report of Zhejiang NHU Co. Ltd.
Section X Financial Report
I. Auditor’s Report
Audit Opinion Standard unqualified opinion
Audit signature date April 11 2025
Accounting Firm Pan-China Certified Public Accountants LLP
Number of Auditor’s Report PCCPAAR [2025] No.4218
Signatory Certified Public Accountants Teng Peibin Jan Yanhui
Auditor’s 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 “Company”) which comprise the consolidated
and parent company balance sheets as at December 31 2024 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 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 Company as at
December 31 2024 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. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants and we have fulfilled 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.(I) Revenue recognition
1. Key audit matters
Please refer to item V 23、VII 40 and XVII 1of this section for details.The Company is mainly engaged in manufacturing and sales of nutrition flavor and fragrance new polymer materials etc. In 2024
the operating revenue amounted to 21.61billion yuan.As operating revenue is one of the key performance indicators of the Company there might be inherent risks that the Company’s
management (the “Management”) adopts inappropriate revenue recognition to achieve specific goals or expectations we have
892024 Annual Report of Zhejiang NHU Co. Ltd.
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 of these controls determined
whether they had been executed and tested the effectiveness of the operation;
(2) We checked sale contracts obtained understandings of main contractual terms or conditions and assessed whether the revenue
recognition method was appropriate;
(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 by sampling method including
sales contracts sales invoices delivery lists shipping documents client acceptance receipts etc.; for revenue from overseas sales we
obtained information from Electron Port and checked it with accounting records and checked supporting documents including sales
contracts bills of clearance waybills sales invoices etc. by sampling method;
(5) We performed confirmation procedures on current sales amount by sampling method in combination with confirmation procedure
of accounts receivable;
(6) We performed cut-off tests on the operating revenue recognized around the balance sheet date and assessed whether the operating
revenue was recognized in the appropriate period;
(7) We obtained the sales return records after the balance sheet date and checked whether there was any situation that meet the revenue
recognition conditions on the balance sheet date
(8) 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
1. Key audit matters
Please refer to item V 1 of this section for details.At the balance sheet date the Company’s cash and bank balances amounted to 7936.50 million yuan which is one of the main assets
of the Company. As the amount of cash and bank balances is significant the existence and integrity of cash and bank balances have
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 of these
controls determined whether they had been executed and tested the effectiveness of the operation;
(2) We checked integrity of bank accounts in combination with detail tests based on “List of Opened Bank Settlement Accounts”
obtained;
(3) We obtained and checked bank statements and bank reconciliation statements and performed confirmation procedures on balance
of bank accounts;
(4) We checked bank statements and bank journals performed bidirectional tests on bank statements of significant accounts and
902024 Annual Report of Zhejiang NHU Co. Ltd.
checked the transactions with large amounts;
(5) We checked the original documents of time deposit and checked whether cash and bank balances have been pledged in combination
with enterprise credit reports;
(6) We reviewed interest income and checked whether interest income was consistent with the amount of cash and bank balances; and
(7) We checked whether information related to cash and bank balances had been presented appropriately in the financial statements.
(III) Recognition and measurement of fixed assets and construction in progress
1. Key audit matters
Please refer to item V 15、16 and VII 12、 13 of this section for details.As of December 31 2024 the Company’s carrying amount of fixed assets and construction in progress totals 22487.60 million yuan
which is one of the major assets of the Company.Recognition and measurement of fixed assets and construction in progress involves significant judgement of the Management including
the determination of capitalization criteria for expenditures time point of construction in progress transferred to fixed assets and the
beginning of depreciation estimation on economic useful lives and residual value of fixed assets etc
As the amount of carrying amount of fixed assets and construction in progress is significant and reasonableness of judgement
mentioned above has significant influence on financial statements we have identified recognition and measurement of fixed assets and
construction in progress as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for recognition and measurement of fixed assets and construction in progress are as follows:
(1) We obtained understandings of key internal controls related to fixed assets and construction in progress assessed the design of these
controls determined whether they had been executed and tested the effectiveness of the operation;
(2) We checked the accuracy of capitalization amount in combination with the audit of bank borrowings;
(3) We checked acceptance reports related to construction projects or project progress reports payment documents of construction
schedule payments etc. by sampling method and decided whether the time point of construction in progress transferred to fixed assets
was reasonable;
(4) We checked information such as acceptance reports or project progress reports related to important construction projects and
payment vouchers for construction progress to determine whether the point in time when construction in progress is transferred to fixed
assets is reasonable;
(5) We checked purchase invoices insurance policy of sales contracts delivery lists etc. of fixed assets such as outsourcing machinery
and reviewed the accuracy of their costs;
(6) We obtained supporting documents related to construction in progress increased in the current period including project application
construction loan contracts construction contracts invoices purchase application for construction materials payment bills
manufacturing agreements etc. and checked whether their costs and accounting treatment were correct;
(7) We assessed the reasonableness of economic useful lives and residual value of fixed assets estimated by the Management in
combination with conditions of the industry;
(8) We checked whether information related to fixed assets and construction in progress had been presented appropriately in the
912024 Annual Report of Zhejiang NHU Co. Ltd.
financial statements.IV. Other Information
The Management is responsible for the other information. The other information comprises the information included in the Company’s
annual report but does not include the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so consider
whether the other information is materially inconsistent with the financial statements or 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 the other information we are required
to report that fact. We have nothing to report in this regard
V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The Management is responsible for preparing and presenting fairly the financial statements in accordance with China Accounting
Standards for Business Enterprises as well as designing implementing and maintaining internal control relevant to the preparation of
financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing the Company’s ability to continue as a going concern
disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the Management
either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
Our objective is 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 an audit opinion. Reasonable assurance is a high level of
assurance but it does not guarantee that an audit performed in accordance with auditing standards will always detect a material
misstatement when it exists. Misstatements may result from fraud or error and are generally considered material if they could reasonably
be expected individually or in the aggregate to affect the economic decisions of users of financial statements based on the financial
statements.In performing the audit in accordance with auditing standards we use professional judgment and maintain professional skepticism.Also we perform the following:
(i) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform
audit procedures to address those risks and obtain audit evidence that is sufficient and appropriate to form the basis of 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 intentional omissions misrepresentation or overriding internal controls.(ii) Understand internal control relevant to the audit in order to design appropriate audit procedures.(iii) Evaluating the appropriateness of management's selection of accounting policies and the reasonableness of accounting estimates
and related disclosures.(iv) To draw conclusions about the appropriateness of management's use of the going concern assumption. At the same time based on
the audit evidence obtained we conclude whether there is a material uncertainty regarding the existence of matters or circumstances
922024 Annual Report of Zhejiang NHU Co. Ltd.
that may cast significant doubt on the ability of Shinwa Sung to continue as a going concern. If we conclude that a material uncertainty
exists auditing standards require us to draw the attention of the users of the statements to the relevant disclosures in the financial
statements in our audit report; if the disclosures are not adequate we should express an unqualified opinion. Our conclusions are based
on information available as of the date of the audit report. However future events or circumstances may cause NWS to be unable to
continue as a going concern.(v) Evaluating the overall presentation structure and content of the financial statements and evaluating whether the financial statements
fairly reflect the underlying transactions and events.(vi) Obtaining sufficient and appropriate audit evidence about the financial information of entities or business activities in NWS to
express an audit opinion on the financial statements. We are responsible for directing supervising and performing the group audit and
accept full responsibility for the audit opinion.We communicate with governance on matters such as the scope timing and significant findings of planned audits including
communicating internal control deficiencies of concern identified in our audits.We also provide governance with a statement that we have complied with ethical requirements related to independence and
communicate with governance all relationships and other matters that may reasonably be perceived to affect our independence as well
as related precautions if applicable.From the matters communicated with governance we determined which matters were most significant to the audit of the current
financial statements and therefore constituted key audit matters. We describe these matters in our audit report except where public
disclosure of the matters is prohibited by law or regulation or in rare circumstances where we determine that a matter should not be
communicated in the audit report if the negative consequences of communicating the matter in the audit report could reasonably be
expected to outweigh the benefits in the public interest.II. Financial statements
The monetary unit of the financial statements is Renminbi (RMB) Yuan.
1. Consolidated balance sheet
Prepared by Zhejiang NHU Co. Ltd.December 31 2024
Unit: RMB Yuan
Items December 31 2024 January 1 2024
Current assets:
Cash and bank balances 7936504805.65 4543361146.98
Settlement funds
Loans to other banks
Held-for-trading financial assets 745816.34 173056050.95
Derivative financial assets
Notes receivable 292562093.90 116125267.70
Accounts receivable 3653676104.37 2483266952.88
Receivables financing 523913135.22 331634090.61
Advances paid 163216512.08 209274602.05
Premiums receivable
932024 Annual Report of Zhejiang NHU Co. Ltd.
Items December 31 2024 January 1 2024
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 225516143.49 142060705.67
Including: Interest receivable
Dividend receivable
Financial assets under reverse repo
Inventories 4090096841.96 4318878875.34
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 35969632.09 68232745.03
Total current assets 16922201085.10 12385890437.21
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 865262148.36 697145200.08
Other equity instrument investments 19498147.55 22998147.55
Other non-current financial assets
Investment property
Fixed assets 21915984823.43 21860082637.13
Construction in progress 571610643.68 1621882507.56
Productive biological assets
Oil & gas assets
Right-of-use assets 13222869.09 6603631.56
Intangible assets 2482899966.19 2407560753.82
Including: Data resources
Development expenditures
Including: Data resources
Goodwill 3622704.97 3622704.97
Long-term prepayments 33059580.89 11697961.72
Deferred tax assets 2106046.31 650079.18
Other non-current assets 159664455.40 138112803.89
Total non-current assets 26066931385.87 26770356427.46
Total assets 42989132470.97 39156246864.67
Current liabilities:
942024 Annual Report of Zhejiang NHU Co. Ltd.
Items December 31 2024 January 1 2024
Short-term borrowings 1162512239.04 1235688062.90
Central bank loans
Loans from other banks
Held-for-trading financial liabilities 11151258.46
Derivative financial liabilities
Notes payable 159164822.28 349347472.36
Accounts payable 1685979157.55 1930958598.05
Advances received
Contract liabilities 237013669.77 251008240.97
Financial liabilities under repo
Absorbing deposit and interbank
deposit
Deposit for agency security
transaction
Deposit for agency security
underwriting
Employee benefits payable 473107111.45 418273203.88
Taxes and rates payable 538903915.30 301794080.40
Other payables 122424090.50 53671773.90
Including: Interest payable
Dividend payable
Handling fee and commission
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
2465378913.941564392458.67
year
Other current liabilities 53564334.90 17260124.76
Total current liabilities 6909199513.19 6122394015.89
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 5327243721.25 6821643194.58
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 3584791.02 5240136.43
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 1025834591.04 1065586274.49
952024 Annual Report of Zhejiang NHU Co. Ltd.
Items December 31 2024 January 1 2024
Deferred tax liabilities 277719591.54 221675090.41
Other non-current liabilities
Total non-current liabilities 6634382694.85 8114144695.91
Total liabilities 13543582208.04 14236538711.80
Equity:
Share capital 3073421680.00 3090907356.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 3132519968.42 3613345485.13
Less: Treasury shares 500059711.25
Other comprehensive income 91513343.50 103920732.85
Special reserve 106348864.91 60860818.76
Surplus reserve 1545453678.00 1545453678.00
General risk reserve
Undistributed profit 21375740194.12 16890233961.50
Total equity attributable to the parent
29324997728.9524804662320.99
company
Non-controlling interest 120552533.98 115045831.88
Total equity 29445550262.93 24919708152.87
Total liabilities & equity 42989132470.97 39156246864.67
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Zhang Lijin
2. Parent company balance sheet
Unit: RMB Yuan
Items December 31 2024 January 1 2024
Current assets:
Cash and bank balances 3810717348.40 2944073209.24
Held-for-trading financial assets
Derivative financial assets
Notes receivable 292562093.90 116657645.60
Accounts receivable 1455089726.43 626644050.39
Receivables financing
Advances paid 2099814.14 4143777.83
Other receivables 1008085932.79 2908050463.81
Including: Interest receivable
Dividend receivable
Inventories 400830486.99 295102427.23
Including: Data resources
Contract assets
962024 Annual Report of Zhejiang NHU Co. Ltd.
Items December 31 2024 January 1 2024
Assets held for sale
Non-current assets due within one
year
Other current assets 3049642.27 1925459.39
Total current assets 6972435044.92 6896597033.49
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 11488137747.99 10678236147.42
Other equity instrument investments 69498147.55 72998147.55
Other non-current financial assets
Investment property
Fixed assets 757545856.68 612700666.98
Construction in progress 25813815.03 71331975.01
Productive biological assets
Oil & gas assets
Right-of-use assets 2469722.68 2630791.48
Intangible assets 146947405.16 145613180.34
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term prepayments 389534.31 1165411.93
Deferred tax assets 605226.35 10794527.34
Other non-current assets 55399951.70 29165952.28
Total non-current assets 12546807407.45 11624636800.33
Total assets 19519242452.37 18521233833.82
Current liabilities:
Short-term borrowings 304056277.79 496760409.72
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 62937989.99 109519196.45
Accounts payable 156311918.60 115590089.62
Advances received
Contract liabilities 7720715.41 3836737.57
Employee benefits payable 89940402.47 74330678.60
Taxes and rates payable 21422158.51 13608334.34
Other payables 20443244.50 16876789.87
972024 Annual Report of Zhejiang NHU Co. Ltd.
Items December 31 2024 January 1 2024
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one
1817695895.34687277786.06
year
Other current liabilities 6244444.91 494804.24
Total current liabilities 2486773047.52 1518294826.47
Non-current liabilities:
Long-term borrowings 3020447965.04 4350488292.95
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2603650.85 2715619.54
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 18171910.38 11067751.34
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 3041223526.27 4364271663.83
Total liabilities 5527996573.79 5882566490.30
Equity:
Share capital 3073421680.00 3090907356.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 2871231553.94 3353675803.74
Less: Treasury shares 500059711.25
Other comprehensive income 506954.43 506954.43
Special reserve 19478463.14 10583344.97
Surplus reserve 1545453678.00 1545453678.00
Undistributed profit 6481153549.07 5137599917.63
Total equity 13991245878.58 12638667343.52
Total liabilities & equity 19519242452.37 18521233833.82
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Zhang Lijin
3. Consolidated income statement
Unit: RMB Yuan
982024 Annual Report of Zhejiang NHU Co. Ltd.
Items Year2024 Year 2023
I. Total operating revenue 21609592228.45 15116537003.30
Including: Operating revenue 21609592228.45 15116537003.30
Interest income
Premiums earned
Revenue from handling
charges and commission
II. Total operating cost 14833148723.72 11960861457.05
Including: Operating cost 12582000646.65 10131490375.45
Interest expenses
Handling charges and
commission expenditures
Surrender value
Net payment of insurance
claims
Net provision of insurance
policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 250745675.42 166729987.78
Selling expenses 190298278.24 158316813.86
Administrative expenses 595894541.26 551072291.99
R&D expenses 1036161740.50 887801475.02
Financial expenses 178047841.65 65450512.95
Including: Interest expenses 282180513.56 319906196.30
Interest income 126041480.98 133145750.15
Add: Other income 268057018.67 202088522.53
Investment income (or less:
77274370.6083054284.94
losses)
Including: Investment income
53851462.3044130854.54
from associates and joint ventures
Gains from
derecognition of financial assets at
amortized cost
Gains on foreign exchange (or
less: losses)
Gains on net exposure to hedging
risk (or less: losses)
Gains on changes in fair value (or
-13600481.1929932484.98
less: losses)
Credit impairment loss -55009881.32 3551588.16
Assets impairment loss -81957927.36 -230600448.22
Gains on asset disposal (or less:
1393189.0816404163.69
losses)
992024 Annual Report of Zhejiang NHU Co. Ltd.
Items Year2024 Year 2023
III. Operating profit (or less: losses) 6972599793.21 3260106142.33
Add: Non-operating revenue 5472411.83 7931135.56
Less: Non-operating expenditures 34491018.05 14502738.61
IV. Profit before tax (or less: total loss) 6943581186.99 3253534539.28
Less: Income tax 1046710979.40 528125637.05
V. Net profit (or less: net loss) 5896870207.59 2725408902.23
(I) Categorized by the continuity of
operations
1. Net profit from continuing
5896870207.592725408902.23
operations (or less: net loss)
2. Net profit from discontinued
operations (or less: net loss)
(II) Categorized by the portion of
equity ownership
1. Net profit attributable to owners
5868545988.622704238767.54
of parent company
2. Net profit attributable to non-
28324218.9721170134.69
controlling shareholders
VI. Other comprehensive income after
-21417073.4433929099.01
tax
Items attributable to the owners of the
-12407389.3527343168.68
parent company
(I) Not to be reclassified
subsequently to profit or loss
1. Changes in remeasurement on
the net defined benefit plan
2. Items under equity method that
will not be reclassified to profit or loss
3. Changes in fair value of other
equity instrument investments
4. Changes in fair value of own
credit risk
5. Others
(II) To be reclassified subsequently
-12407389.3527343168.68
to profit or loss
1. Items under equity method that
may be reclassified to profit or loss
2. Changes in fair value of other
debt investments
3. Profit or loss from
reclassification of financial assets into
other comprehensive income
4. Provision for credit impairment
of other debt investments
5. Cash flow hedging reserve
6. Translation reserve -12407389.35 27343168.68
7. Others
Items attributable to non-controlling
-9009684.096585930.33
shareholders
VII. Total comprehensive income 5875453134.15 2759338001.24
1002024 Annual Report of Zhejiang NHU Co. Ltd.
Items Year2024 Year 2023
Items attributable to the owners of the
5856138599.272731581936.22
parent company
Items attributable to non-controlling
19314534.8827756065.02
shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) 1.91 0.87
(II) Diluted EPS (yuan per share) 1.91 0.87
Net profit realized by the combined party in business combination under common control before the business combination in the
current period was 0.00 yuan and net profit realized by the combined party in the previous period was 0.00 yuan.Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Zhang Lijin
4. Parent company income statement
Unit: RMB Yuan
Items Year 2024 Year 2023
I. Operating revenue 4443985667.77 2800974043.80
Less: Operating cost 3422591909.49 2516550050.27
Taxes and surcharges 15902824.62 17900647.81
Selling expenses 43445215.30 36688214.04
Administrative expenses 169928788.65 168615260.60
R&D expenses 224541489.04 249169737.63
Financial expenses 76838195.16 74811854.41
Including: Interest expenses 158660246.18 168273675.71
Interest income 83523057.29 95067720.22
Add: Other income 33355311.23 34542333.84
Investment income (or less:
2174759454.721549382083.45
losses)
Including: Investment income
34040307.1224434009.92
from associates and joint ventures
Gains from
derecognition of financial assets at
amortized cost
Gains on net exposure to hedging
risk (or less: losses)
Gains on changes in fair value (or
less: losses)
Credit impairment loss (or less:
58079817.91-33430454.86
losses)
Assets impairment loss (or less:
-9821857.49-22771080.59
losses)
Gains on asset disposal (or less:
201235.3714085495.86
losses)
II. Operating profit (or less: losses) 2747311207.25 1279046656.74
Add: Non-operating revenue 722089.07 2729472.22
1012024 Annual Report of Zhejiang NHU Co. Ltd.
Items Year 2024 Year 2023
Less: Non-operating expenditures 4015788.77 735574.35
III. Profit before tax (or less: total loss) 2744017507.55 1281040554.61
Less: Income tax 17424120.11 -4385111.58
IV. Net profit (or less: net loss) 2726593387.44 1285425666.19
(I) Net profit from continuing
2726593387.441285425666.19
operations (or less: net loss)
(II) Net profit from discontinued
operations (or less: net loss)
V. Other comprehensive income after tax
(I) Not to be reclassified
subsequently to profit or loss
1. Changes in remeasurement on
the net defined benefit plan
2. Items under equity method that
will not be reclassified to profit or loss
3. Changes in fair value of other
equity instrument investments
4. Changes in fair value of own
credit risk
5. Others
(II) To be reclassified subsequently
to profit or loss
1. Items under equity method that
may be reclassified to profit or loss
2. Changes in fair value of other
debt investments
3. Profit or loss from
reclassification of financial assets into
other comprehensive income
4. Provision for credit impairment
of other debt investments
5. Cash flow hedging reserve
6. Translation reserve
7. Others
VI. Total comprehensive income 2726593387.44 1285425666.19
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Zhang Lijin
5. Consolidated cash flow statement
Unit: RMB Yuan
Items Year 2024 Year 2023
I. Cash flows from operating activities:
Cash receipts from sale of goods or
19053643873.0115114302982.05
rendering of services
Net increase of client deposit and
interbank deposit
1022024 Annual Report of Zhejiang NHU Co. Ltd.
Items Year 2024 Year 2023
Net increase of central bank loans
Net increase of loans from other
financial institutions
Cash receipts from original insurance
contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit
and investment
Cash receipts from interest handling
charges and commission
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security
transaction
Receipts of tax refund 458848003.09 809452548.86
Other cash receipts related to
317657192.98340383499.80
operating activities
Subtotal of cash inflows from operating
19830149069.0816264139030.71
activities
Cash payments for goods purchased
8751457054.038199010919.39
and services received
Net increase of loans and advances to
clients
Net increase of central bank deposit
and interbank deposit
Cash payments for insurance
indemnities of original insurance
contracts
Net increase of loans to others
Cash payments for interest handling
charges and commission
Cash payments for policy bonus
Cash paid to and on behalf of
2045076828.251857883629.25
employees
Cash payments for taxes and rates 1589158602.36 772137083.65
Other cash payments related to
371392401.11315736535.10
operating activities
Subtotal of cash outflows from operating
12757084885.7511144768167.39
activities
Net cash flows from operating activities 7073064183.33 5119370863.32
II. Cash flows from investing activities:
Cash receipts from withdrawal of
3500000.00
investments
Cash receipts from investment income 43014111.55 80104340.27
Net cash receipts from the disposal of
fixed assets intangible assets and other 73224210.59 39486013.26
long-term assets
Net cash receipts from the disposal of
80926928.19
subsidiaries & other business units
1032024 Annual Report of Zhejiang NHU Co. Ltd.
Items Year 2024 Year 2023
Other cash receipts related to investing
145000000.00830752957.52
activities
Subtotal of cash inflows from investing
345665250.33950343311.05
activities
Cash payments for the acquisition of
fixed assets intangible assets and other 1599799315.13 4445521671.75
long-term assets
Cash payments for investments 155672000.00 237508000.00
Net increase of pledged borrowings
Net cash payments for the acquisition
of subsidiaries & other business units
Other cash payments related to
2364056616.43145000000.00
investing activities
Subtotal of cash outflows from investing
4119527931.564828029671.75
activities
Net cash flows from investing activities -3773862681.23 -3877686360.70
III. Cash flows from financing activities:
Cash receipts from absorbing
1941199.07
investments
Including: Cash received by
subsidiaries from non-controlling 1941199.07
shareholders as investments
Cash receipts from borrowings 4330592177.82 5996318716.61
Other cash receipts related to
108750334.91
financing activities
Subtotal of cash inflows from financing
4441283711.805996318716.61
activities
Cash payments for the repayment of
4996888657.036198516255.00
borrowings
Cash payments for distribution of
dividends or profits and for interest 1677551933.66 1833426559.71
expenses
Including: Cash paid by subsidiaries to
non-controlling shareholders as dividend 14142695.44
or profit
Other cash payments related to
29860119.8917387029.07
financing activities
Subtotal of cash outflows from financing
6704300710.588049329843.78
activities
Net cash flows from financing activities -2263016998.78 -2053011127.17
IV. Effect of foreign exchange rate
38697747.85106055107.99
changes on cash & cash equivalents
V. Net increase in cash and cash
1074882251.17-705271516.56
equivalents
Add: Opening balance of cash and
4446570415.305151841931.86
cash equivalents
VI. Closing balance of cash and cash
5521452666.474446570415.30
equivalents
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Zhang Lijin
1042024 Annual Report of Zhejiang NHU Co. Ltd.
6. Parent company cash flow statement
Unit: RMB Yuan
Items Year 2024 Year 2023
I. Cash flows from operating activities:
Cash receipts from sale of goods and
3521086251.532986881221.91
rendering of services
Receipts of tax refund 88706403.65 95053714.28
Other cash receipts related to
121346508.65141034122.88
operating activities
Subtotal of cash inflows from operating
3731139163.833222969059.07
activities
Cash payments for goods purchased
3622675768.592542919770.85
and services received
Cash paid to and on behalf of
362197711.22346310819.49
employees
Cash payments for taxes and rates 17629133.53 13418034.19
Other cash payments related to
118754035.38149457603.83
operating activities
Subtotal of cash outflows from operating
4121256648.723052106228.36
activities
Net cash flows from operating activities -390117484.89 170862830.71
II. Cash flows from investing activities:
Cash receipts from withdrawal of
86291000.00
investments
Cash receipts from investment income 2075920000.00 1438109000.00
Net cash receipts from the disposal of
fixed assets intangible assets and other 18949197.67 30696077.98
long-term assets
Net cash receipts from the disposal of
subsidiaries & other business units
Other cash receipts related to investing
2412265557.831260748671.65
activities
Subtotal of cash inflows from investing
4593425755.502729553749.63
activities
Cash payments for the acquisition of
fixed assets intangible assets and other 210763519.36 144285480.21
long-term assets
Cash payments for investments 855672000.00 1267508000.00
Net cash payments for the acquisition
of subsidiaries & other business units
Other cash payments related to
2405200000.001422350000.01
investing activities
Subtotal of cash outflows from investing
3471635519.362834143480.22
activities
Net cash flows from investing activities 1121790236.14 -104589730.59
III. Cash flows from financing activities:
Cash receipts from absorbing
investments
Cash receipts from borrowings 2000000000.00 2995000000.00
Other cash receipts related to
financing activities
1052024 Annual Report of Zhejiang NHU Co. Ltd.
Items Year 2024 Year 2023
Subtotal of cash inflows from financing
2000000000.002995000000.00
activities
Cash payments for the repayment of
2394000000.002507000000.00
borrowings
Cash payments for distribution of
dividends or profits and for interest 1539258046.63 1704462267.78
expenses
Other cash payments related to
1405443.741690292.10
financing activities
Subtotal of cash outflows from financing
3934663490.374213152559.88
activities
Net cash flows from financing activities -1934663490.37 -1218152559.88
IV. Effect of foreign exchange rate
16333.73848445.34
changes on cash and cash equivalents
V. Net increase in cash and cash
-1202974405.39-1151031014.42
equivalents
Add: Opening balance of cash and
2903317341.854054348356.27
cash equivalents
VI. Closing balance of cash and cash
1700342936.462903317341.85
equivalents
Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Zhang Lijin
1062024 Annual Report of Zhejiang NHU Co. Ltd.
7. Consolidated statement of changes in equity
Current period cumulative
Unit: RMB Yuan
Year 2024
Equity attributable to parent company
Items Other equity instruments Other General Non-controlling
Less: Surplus Total equity
Share capital Preferred Perpetual Capital reserve comprehensive Special reserve risk Undistributed profit Others Subtotal interest
Others Treasury shares reserve
shares bonds income reserve
I. Balance at the end of 3090907356.00 3613345485.13 500059711.25 103920732.85 60860818.76 1545453678.00 16890233961.50 24804662320.99 115045831.88 24919708152.87
prior year
Add: Cumulative changes
of accounting policies
Error correction of
prior period
Others
II. Balance at the 3090907356.00 3613345485.13 500059711.25 103920732.85 60860818.76 1545453678.00 16890233961.50 24804662320.99 115045831.88 24919708152.87
beginning of current year
III. Current period -17485676.00 -480825516.71 -500059711.25 -12407389.35 45488046.15 4485506232.62 4520335407.96 5506702.10 4525842110.06
increase (or less:
decrease)
(I) Total comprehensive -12407389.35 5868545988.62 5856138599.27 19314534.88 5875453134.15
income
(II) Capital contributed or -17485676.00 -482574035.25 -500059711.25 1941199.07 1941199.07
withdrawn by owners
1. Ordinary shares 1941199.07 1941199.07
contributed by owners
2. Capital contributed by
holders of other equity
instruments
3. Amount of share-based
payment included in
equity
4. Others -17485676.00 -482574035.25 -500059711.25
(III) Profit distribution -1383039756.00 -1383039756.00 -14142695.44 -1397182451.44
1. Appropriation of
surplus reserve
2. Appropriation of
general risk reserve
3. Appropriation of profit -1383039756.00 -1383039756.00 -14142695.44 -1397182451.44
to owners
4. Others
(IV) Internal carry-over
within equity
1. Transfer of capital
reserve to capital
2. Transfer of surplus
reserve to capital
1072024 Annual Report of Zhejiang NHU Co. Ltd.
Year 2024
Equity attributable to parent company
Items Other equity instruments Other General Non-controlling
Less: Surplus Total equity
Share capital Preferred Perpetual Capital reserve comprehensive Special reserve risk Undistributed profit Others Subtotal interest
Others Treasury shares reserve
shares bonds income reserve
3. Surplus reserve to
cover losses
4. Changes in defined
benefit plan carried over
to retained earnings
5. Other comprehensive
income carried over to
retained earnings
6. Others
(V) Special reserve 45488046.15 45488046.15 45488046.15
1. Appropriation of 83884085.07 83884085.07 83884085.07
current period
2. Application of current -38396038.92 -38396038.92 -38396038.92
period
(VI) Others 1748518.54 1748518.54 -1606336.41 142182.13
IV. Balance at the end of 3073421680.00 3132519968.42 91513343.50 106348864.91 1545453678.00 21375740194.12 29324997728.95 120552533.98 29445550262.93
current period
Preceding period comparative
Unit: RMB Yuan
Year 2023
Equity attributable to parent company
Items Other equity instruments Other General Non-controlling
Less: Surplus Total equity
Share capital Preferred Perpetual Capital reserve comprehensive Special reserve risk Undistributed profit Others Subtotal interest
Others Treasury shares reserve
shares bonds income reserve
I. Balance at the end of prior
3090907356.003613097510.81500059711.2576577564.1726196894.551444414900.0515823744811.9123574879326.2487289766.8523662169093.09
year
Add: Cumulative changes of
accounting policies
Error correction of prior
period
Business combination
under common control
Others
II. Balance at the beginning of
3090907356.003613097510.81500059711.2576577564.1726196894.551444414900.0515823744811.9123574879326.2487289766.8523662169093.09
current year
III. Current period increase
247974.3227343168.6834663924.21101038777.951066489149.591229782994.7527756065.031257539059.78
(or less: decrease)
(I) Total comprehensive
27343168.68 2704238767.54 2731581936.22 27756065.03 2759338001.25 income
(II) Capital contributed or
withdrawn by owners
1. Ordinary shares contributed
by owners
1082024 Annual Report of Zhejiang NHU Co. Ltd.
Year 2023
Equity attributable to parent company
Items Other equity instruments Other General Non-controlling
Less: Surplus Total equity
Share capital Preferred Perpetual Capital reserve comprehensive Special reserve risk Undistributed profit Others Subtotal interest
Others Treasury shares reserve
shares bonds income reserve
2. Capital contributed by
holders of other equity
instruments
3. Amount of share-based
payment included in equity
4. Others
(III) Profit distribution 101038777.95 -1637749617.95 -1536710840.00 -1536710840.00
1. Appropriation of surplus
101038777.95-101038777.95
reserve
2. Appropriation of general
risk reserve
3. Appropriation of profit to
-1536710840.00-1536710840.00-1536710840.00
owners
4. Others
(IV) Internal carry-over
within equity
1. Transfer of capital reserve
to capital
2. Transfer of surplus reserve
to capital
3. Surplus reserve to cover
losses
4. Changes in defined benefit
plan carried over to retained
earnings
5. Other comprehensive
income carried over to
retained earnings
6. Others
(V) Special reserve 34663924.21 34663924.21 34663924.21
1. Appropriation of current
85571248.5385571248.5385571248.53
period
2. Application of current
-50907324.32-50907324.32-50907324.32
period
(VI) Others 247974.32 247974.32 247974.32
IV. Balance at the end of
3090907356.003613345485.13500059711.25103920732.8560860818.761545453678.0016890233961.5024804662320.99115045831.8824919708152.87
current period
1092024 Annual Report of Zhejiang NHU Co. Ltd.
8. Parent company statements of changes in equity
Current period cumulative
Unit: RMB Yuan
Year 2024
Other equity instruments
Items Other Less: Treasury
Share capital Preferred Perpetual Capital reserve comprehensive Special reserve Surplus reserve Undistributed profit Others Total equity
Others shares
shares bonds income
I. Balance at the end of prior year 3090907356.00 3353675803.74 500059711.25 506954.43 10583344.97 1545453678.00 5137599917.63 12638667343.52
Add: Cumulative changes of accounting
policies
Error correction of prior period
Others
II. Balance at the beginning of current
3090907356.003353675803.74500059711.25506954.4310583344.971545453678.005137599917.6312638667343.52
year
III. Current period increase (or less:
-17485676.00-482444249.80-500059711.258895118.171343553631.441352578535.06
decrease)
(I) Total comprehensive income 2726593387.44 2726593387.44
(II) Capital contributed or withdrawn by
-17485676.00-482574035.25-500059711.25
owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other
equity instruments
3. Amount of share-based payment
included in equity
4. Others -17485676.00 -482574035.25 -500059711.25
(III) Profit distribution -1383039756.00 -1383039756.00
1. Appropriation of surplus reserve
2. Appropriation of profit to owners -1383039756.00 -1383039756.00
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan
carried over to retained earnings
5. Other comprehensive income carried
over to retained earnings
6. Others
(V) Special reserve 8895118.17 8895118.17
1. Appropriation of current period 10897162.63 10897162.63
2. Application of current period -2002044.46 -2002044.46
(VI) Others 129785.45 129785.45
IV. Balance at the end of current period 3073421680.00 2871231553.94 506954.43 19478463.14 1545453678.00 6481153549.07 13991245878.58
1102024 Annual Report of Zhejiang NHU Co. Ltd.
Preceding period comparative
Unit: RMB Yuan
Year 2023
Other equity instruments
Items Other Less: Treasury Undistributed
Share capital Preferred Perpetual Capital reserve comprehensive Special reserve Surplus reserve Others Total equity
Others shares profit
shares bonds income
I. Balance at the end of prior year 3090907356.00 3353427829.42 500059711.25 506954.43 1444414900.05 5489923869.39 12879121198.04
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 3090907356.00 3353427829.42 500059711.25 506954.43 1444414900.05 5489923869.39 12879121198.04
III. Current period increase (or less: decrease) 247974.32 10583344.97 101038777.95 -352323951.76 -240453854.52
(I) Total comprehensive income 1285425666.19 1285425666.19
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment included in equity
4. Others
-
(III) Profit distribution 101038777.95 -1536710840.00
1637749617.95
1. Appropriation of surplus reserve 101038777.95 -101038777.95
-
2. Appropriation of profit to owners -1536710840.00
1536710840.00
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over to
retained earnings
5. Other comprehensive income carried over to retained
earnings
6. Others
(V) Special reserve 10583344.97 10583344.97
1. Appropriation of current period 12377758.42 12377758.42
2. Application of current period -1794413.45 -1794413.45
(VI) Others 247974.32 247974.32
IV. Balance at the end of current period 3090907356.00 3353675803.74 500059711.25 506954.43 10583344.97 1545453678.00 5137599917.63 12638667343.52
1112024 Annual Report of Zhejiang NHU Co. Ltd.
III. Company profile
Zhejiang NHU Co. Ltd. (the “Company”) was jointly established by Xinchang County Synthetic Chemical Plant renamed as NHU
Holding Group Co. Ltd. on November 17 2009) and 9 natural persons including Zhang Pingyi Yuan Yizhong Shi Cheng Hu Baishan
Shi Guanqun Wang Xuewen Shi Sanfu Cui Xinrong and Wang Xulin under the document of approval numbered Zhe Zheng Wei
[1999] 9 issued by the former Securities Commission of the People’s Government of Zhejiang Province. Headquartered in Shaoxing
City Zhejiang Province the Company was registered at Zhejiang Administration for Industry and Commerce on April 5 1999.Currently the Company holds a business license with unified social credit code of 91330000712560575G with registered capital of
3073421680 yuan total share of 3073421680 shares (each with par value of one yuan) of which 36374202 shares are restricted
outstanding shares and 3037011928 shares are unrestricted outstanding shares. The Company’s shares were listed on Shenzhen
Stock Exchange on June 25 2004.The Company belongs to pharmaceutical manufacturing industry and is mainly engaged in manufacturing and sales of nutrition flavor
and fragrance and new polymer materials. The Company’s main products are nutrition flavor and fragrance and new polymer
materials.These financial statements were approved for public reporting by the Corporation at the Eleventh Meeting of the Ninth Board of
Directors on April 11 2025 and have been approved for public reporting.IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements have been prepared on the basis of going concern.
2. The ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue as a going concern
within the 12 months after the balance sheet date.V. Significant accounting policies and estimates
Specific Accounting Policies and Accounting Estimates Reminder:
Note to specific accounting policies and estimates: The Company has set up accounting policies and estimates on transactions or events
such as impairment of financial instruments depreciation of fixed assets depreciation of right-of-use assets amortization of intangible
assets and revenue recognition etc. based on the Company’s actual production and operation features.
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting Standards for Business
Enterprises (CASBEs) and present truly and completely the financial position results of operations and cash flows of the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
Except for the real estate industry the Company has a relatively short operating cycle for its business an asset or a liability is
classified as current if it is expected to be realized or due within 12 months. The operating cycle for real estate industry starts from
the development of property and ends at sales which normally extends over 12 months and is subject to specific projects therefore
an asset or a liability is classified as current if it is expected to be realized or due within such operating cycle.
1122024 Annual Report of Zhejiang NHU Co. Ltd.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan while the functional currency of
subsidiaries engaged in overseas operations including NHU (Hong Kong) Trading Co. Ltd. NHU Europe GmbH and NHU
Singapore PTE. LTD. NHU/CHR. OLESEN LATIN AMERICA A/S NHU JAPAN CO. LTD. is the currency of the primary
economic environment in which they operate.
5. Methodology for determining materiality criteria and basis for selection
√ Applicable □Not applicable
Items Materiality criteria
Significant write-offs of receivables 0.5% of total assets
Significant prepayments aged over 1 year 0.5% of total assets
Significant construction projects in progress 0.5% of total assets
Significant accounts payable aged over 1 year 0.5% of total assets
Significant other accounts payable aged over 1 year 0.5% of total assets
Significant contractual liabilities older than 1 year 0.5% of total assets
Significant cash flows from investing activities 10.00% of total assets
The Company identifies overseas operating entities whose total
assets/total revenues/total profits exceed 15% of the Group's
Significant offshore operating entities
total assets/total revenues/total profits as significant overseas
operating entities
Significant capitalized R&D projects outsourced R&D projects 0.5% of total assets
The Company identifies subsidiaries with total assets/total
revenues/total profits exceeding 15% of the Group's total
Significant subsidiaries non-wholly owned subsidiaries
assets/total revenues/total profits as important subsidiaries
important non-wholly owned subsidiaries
The company identifies joint ventures associates and joint
operations whose total assets/total revenues/total profits exceed
Significant Joint Ventures Associates Co-Operations
15% of the group's total assets/total revenues/total profits as
significant joint ventures associates and joint operations
6. Accounting treatments of business combination under and not under common control
(1)Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined party included in the
consolidated financial statements of the ultimate controlling party at the combination date. Difference between carrying amount of the
equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that of the
combination consideration or total par value of shares issued is adjusted to capital reserve if the balance of capital reserve is insufficient
to offset any excess is adjusted to retained earnings.
(2)Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date the
excess is recognized as goodwill; otherwise the fair value of identifiable assets liabilities and contingent liabilities and the
measurement of the combination cost are reviewed then the difference is recognized in profit or loss.
7. Criteria for judging control and preparation of consolidated financial statements
(1)Controlled judgment
A parent company is recognized as controlling if it has power over the investee enjoys variable returns through participation in the
investee's relevant activities and has the ability to use its power over the investee to affect the amount of its variable returns.
(2) Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated financial statements are
compiled by the parent company according to “CASBE 33 – Consolidated Financial Statements” based on relevant information and
the financial statements of the parent company and its subsidiaries.
1132024 Annual Report of Zhejiang NHU Co. Ltd.
8.Classification of joint venture arrangements and accounting treatment of joint operations
(1)Joint arrangements are categorized as joint operations and joint ventures.
(2)When the company is a joint venture partner in a joint operation the following items related to the share of interest in the joint
operation are recognized:
1) Recognize assets held separately and assets held jointly in proportion to the share held;
2) Recognize liabilities assumed individually and liabilities assumed jointly in proportion to the share held;
3) Recognize revenues from the sale of the company's share of joint operating outputs;
4) Recognize income from joint operations arising from the sale of assets based on the company's share of ownership;
5) Recognition of expenses incurred individually as well as expenses incurred by the joint operation based on the company's share of
ownership.
9. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash equivalents refer to short-
term highly liquid investments that can be readily converted to cash and that are subject to an insignificant risk of changes in value.
10. Foreign currency translation
(1)Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the approximate exchange rate similar to the spot
exchange rate at the transaction date at initial recognition. At the balance sheet date monetary items denominated in foreign currency
are translated at the spot exchange rate at the balance sheet date with difference except for those arising from the principal and interest
of exclusive borrowings eligible for capitalization included in profit or loss; non-cash items carried at historical costs are translated at
the approximate exchange rate similar to the spot exchange rate at the transaction date with the RMB amounts unchanged; non-cash
items carried at fair value in foreign currency are translated at the spot exchange rate at the date when the fair value was determined
with difference included in profit or loss or other comprehensive income.
(2)Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot rate at the balance sheet date; the equity items other
than undistributed profit are translated at the spot rate at the transaction date; the revenues and expenses in the income statement are
translated into RMB at the approximate exchange rate similar to the spot exchange rate at the transaction date. The difference arising
from the aforementioned foreign currency translation is included in other comprehensive income.
11. Financial instruments
(1)Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: 1) financial assets at amortized cost; 2)
financial assets at fair value through other comprehensive income; 3) financial assets at fair value through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: 1) financial liabilities at fair value
through profit or loss; 2) financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when
the continuing involvement approach applies; 3) financial guarantee contracts not fall within the above categories 1) and 2) and
commitments to provide a loan at a below-market interest rate which do not fall within the above category 1); 4) financial liabilities
at amortized cost.
1142024 Annual Report of Zhejiang NHU Co. Ltd.
(2)Recognition criteria measurement method and derecognition condition of financial assets and financial liabilities
1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument it is recognized as a financial asset or financial liability. The financial
assets and financial liabilities initially recognized by the Company are measured at fair value; for the financial assets and liabilities at
fair value through profit or loss the transaction expenses thereof are directly included in profit or loss; for other categories of financial
assets and financial liabilities the transaction expenses thereof are included into the initially recognized amount. However at initial
recognition for accounts receivable that do not contain a significant financing component or in circumstances where the Company
does not consider the financing components in contracts within one year the Company measures the transaction price in accordance
with “CASBE 14 – Revenues”.
2) Subsequent measurement of financial assets
* Financial assets measured at amortized cost
The Company measures its financial assets at the amortized costs using effective interest method. Gains or losses on financial assets
that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when the financial
assets are derecognized reclassified amortized using effective interest method or recognized with impairment loss.* Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests impairment gains or losses and gains and losses on
foreign exchange that calculated using effective interest method shall be included into profit or loss while other gains or losses are
included into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive income should
be transferred out into profit or loss when the financial assets are derecognized.* Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than those as part of investment cost
recovery) shall be included into profit or loss while other gains or losses are included into other comprehensive income. Accumulated
gains or losses that initially recognized as other comprehensive income should be transferred out into retained earnings when the
financial assets are derecognized.* Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value (including interests and
dividends) shall be included into profit or loss except for financial assets that are part of hedging relationships.
3) Subsequent measurement of financial liabilities
* Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including derivatives that are
liabilities) and financial liabilities designated as at fair value through profit or loss. The Company measures such kind of liabilities at
fair value. The amount of changes in the fair value of the financial liabilities that are attributable to changes in the Company’s own
credit risk shall be included into other comprehensive income unless such treatment would create or enlarge accounting mismatches
in profit or loss. Other gains or losses on those financial liabilities (including interests changes in fair value that are attributable to
reasons other than changes in the Company’s own credit risk) shall be included into profit or loss except for financial liabilities that
are part of hedging relationships. Accumulated gains or losses that originally recognized as other comprehensive income should be
transferred out into retained earnings when the financial liabilities are derecognized.
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* Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies
The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.* Financial guarantee contracts not fall within the above categories 1) and 2) and commitments to provide a loan at a below-market
interest rate which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance with impairment
requirements of financial instruments; b. the amount initially recognized less the amount of accumulated amortization recognized in
accordance with “CASBE 14 – Revenues”.* Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses on financial liabilities
that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when the financial
liabilities are derecognized and amortized using effective interest method.
4) Derecognition of financial assets and financial liabilities
* Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire; orb. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with “CASBE 23 – Transfer ofFinancial Assets”.* Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial liability be
derecognized accordingly.
(3)Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the financial asset it
derecognizes the financial asset and any right or liability arising from such transfer is recognized independently as an asset or a liability.If it retained substantially all of the risks and rewards related to the ownership of the financial asset it continues recognizing the
financial asset. Where the Company does not transfer or retain substantially all of the risks and rewards related to the ownership of a
financial asset it is dealt with according to the circumstances as follows respectively: 1) if the Company does not retain its control over
the financial asset it derecognizes the financial asset and any right or liability arising from such transfer is recognized independently
as an asset or a liability; 2) if the Company retains its control over the financial asset according to the extent of its continuing
involvement in the transferred financial asset it recognizes the related financial asset and recognizes the relevant liability accordingly.If the transfer of an entire financial asset satisfies the conditions for derecognition the difference between the amounts of the following
two items is included in profit or loss: 1) the carrying amount of the transferred financial asset as of the date of derecognition; 2) the
sum of consideration received from the transfer of the financial asset and the accumulative amount of the changes of the fair value
originally included in other comprehensive income proportionate to the transferred financial asset (financial assets transferred refer to
debt instrument investments at fair value through other comprehensive income). If the transfer of financial asset partially satisfies the
conditions to derecognition the entire carrying amount of the transferred financial asset is between the portion which is derecognized
and the portion which is not apportioned according to their respective relative fair value and the difference between the amounts of
the following two items is included into profit or loss: 1) the carrying amount of the portion which is derecognized; 2) the sum of
consideration of the portion which is derecognized and the portion of the accumulative amount of the changes in the fair value
1162024 Annual Report of Zhejiang NHU Co. Ltd.
originally included in other comprehensive income which is corresponding to the portion which is derecognized (financial assets
transferred refer to debt instrument investments at fair value through other comprehensive income).
(4)Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data and information are
available to measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the following hierarchy
and used accordingly:
1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the
measurement date.
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly
or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar
assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability for example
interest rates and yield curves observable at commonly quoted intervals; market-corroborated inputs;
3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not observable and cannot
be corroborated by observable market data at commonly quoted intervals historical volatility future cash flows to be paid to fulfill the
disposal obligation assumed in business combination financial forecast developed using the Company’s own data etc.
(5) Impairment of financial instruments
The Company uses expected credit losses as the basis for impairment of financial assets measured at amortized cost investments in
debt instruments at fair value through other comprehensive income contract assets lease receivables loan commitments classified as
other than financial liabilities at fair value through profit or loss financial liabilities that are not classified as financial liabilities at fair
value through profit or loss or financial guarantee contracts that do not Financial guarantee contracts for which the transfer of financial
assets does not meet the conditions for derecognition or for which there is a continuing involvement in the financial liability arising
from the transferred financial asset are treated as impaired and a loss provision is recognized.Expected credit losses the weighted average of credit losses on financial instruments weighted by the risk of default. Credit losses are
the difference between all contractual cash flows receivable by the company under the contract discounted at the original effective
interest rate and all cash flows expected to be collected i.e. the present value of all cash shortfalls. In particular for financial assets
purchased or originated by the company that are credit impaired they are discounted at the credit-adjusted effective interest rate of the
financial asset.For purchased or originated financial assets that have been subject to credit impairment the Company recognizes only the cumulative
change in expected credit losses over the entire period of existence from initial recognition as a provision for losses at the balance sheet
date.For lease receivables receivables resulting from transactions regulated by ASBE No. 14 - Revenue and contract assets the Company
applies a simplified measurement approach and measures the allowance for losses at an amount equal to the expected credit losses over
the entire duration.For financial assets other than those measured above the Company assesses at each balance sheet date whether there has been a
significant increase in credit risk since initial recognition. If there has been a significant increase in credit risk since initial recognition
the Company measures the allowance for losses based on the amount of expected credit losses over the entire duration of the financial
instrument; if there has not been a significant increase in credit risk since initial recognition the Company measures the allowance for
losses based on the amount of expected credit losses of the financial instrument over the next 12 months.
1172024 Annual Report of Zhejiang NHU Co. Ltd.
The company determines whether the credit risk of a financial instrument has increased significantly since initial recognition by
comparing the risk of default of the financial instrument at the balance sheet date with the risk of default at the date of initial recognition
using reasonably available and supportable information including forward-looking information.At the balance sheet date if the company determines that a financial instrument has only a low credit risk it assumes that the credit
risk of the financial instrument has not increased significantly since initial recognition.The company assesses expected credit risk and measures expected credit losses on the basis of an individual financial instrument or a
portfolio of financial instruments. When a portfolio of financial instruments is used as the basis the company classifies the financial
instruments into different portfolios based on common risk characteristics.The company remeasures expected credit losses at each balance sheet date and the resulting increase or reversal of the amount of loss
provision is recognized as an impairment loss or gain in profit or loss for the period. For financial assets carried at amortized cost the
allowance for losses is offset against the carrying amount of the financial asset as stated in the balance sheet; for debt investments
carried at fair value through other comprehensive income the Company recognizes its allowance for losses in other comprehensive
income without offsetting the carrying amount of the financial asset.
(6) Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset against each other. However
the company presents them in the balance sheet at the net amount after offsetting each other if the following conditions are
simultaneously met: 1) the company has a legal right to offset the recognized amount and such legal right is currently enforceable; 2)
the company plans to settle the net amount or to realize the financial asset and settle the financial liability at the same time.For transfers of financial assets that do not meet the conditions for derecognition the company does not offset the transferred financial
assets and related liabilities.
12．Criteria for recognizing and providing for expected credit losses on receivables
(1) Receivables with expected credit losses based on a combination of credit risk characteristics
Basis for
Portfolio Type determining the Methodology for measuring expected credit losses
portfolio
Expected credit losses are calculated by reference to
Bankers' acceptances receivable historical credit loss experience taking into account
Type of notes current conditions and projections of future economic
conditions through default exposures and expected
Commercial acceptances receivable credit loss rates over the entire duration
Prepare a table of accounts receivable aging versus
expected credit loss rates to calculate expected credit
Accounts receivable – Portfolio grouped with
age of accounts losses taking into account historical credit loss
ages
experience current conditions and projections of future
economic conditions
Other receivables - export tax refund receivable
portfolio
Other receivables - VAT refund receivable Expected credit losses are calculated by reference to
portfolio historical credit loss experience taking into account
current conditions and forecasts of future economic
Other receivables - land bond receivable portfolio Nature of payment
conditions through default exposures and expected
Other receivables - portfolio of security deposits credit loss rates over the next 12 months or the entire
receivable from customs and tax authorities duration
Other receivables -- special injection portfolio
1182024 Annual Report of Zhejiang NHU Co. Ltd.
Basis for
Portfolio Type determining the Methodology for measuring expected credit losses
portfolio
Calculate expected credit losses by reference to
historical credit loss experience and by preparing a
Other receivables - ageing portfolio Ages table of the ageing of other receivables against the
expected credit loss rate taking into account current
conditions and forecasts of future economic conditions
(2) Accounts receivable – comparison table of ages and lifetime expected credit loss rate of portfolio grouped with ages
Ages Accounts Receivable
Other receivables Expected credit loss ratio (%)
Expected credit loss ratio (%)
Within 1 year (inclusive the same
5.00 5.00 hereinafter)
1-2 years 20.00 20.00
2-3 years 80.00 80.00
Over 3 years 100.00 100.00
The ageing of accounts receivable/other receivables is calculated from the month in which the amounts are actually incurred.
(3) Criteria for identifying receivables for which expected credit losses are provided on an individual basis
For receivables and contract assets with credit risk significantly different from that of the portfolio the Company accrues expected
credit losses on an individual basis.
13．Inventories
(1) Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business work in process in the process of production
materials or supplies etc. to be consumed in the production process or in the rendering of services.
(2) Accounting method for dispatching inventories:
1) Inventories other than development products are issued using the month-end lump-sum weighted-average method.
2) When a project is developed the land used for development is included in the development cost of the project by calculating the
apportionment based on the floor area of the development products.
3) Issuance of similar development products is accounted for by the average floor area method.
4) If the public ancillary facilities are completed earlier than the relevant development products after the public ancillary facilities are
completed and finalized they are allocated to the development costs of the relevant development projects according to the budgeted
costs of the relevant development projects; if the public ancillary facilities are completed later than the relevant development products
the public ancillary facilities fees are first withheld from the relevant development products and then adjusted according to the
difference between the actual number of fees incurred and the number of fees withdrawn after the completion and finalization of the
public ancillary facilities. If the public facilities are later than the completion of the relevant development products the public facilities
fees will be withheld by the relevant development products first and the difference between the actual amount incurred and the amount
withheld will be adjusted according to the final account after the completion of the public facilities.
(3) Inventory system
Perpetual inventory method is adopted.
(4) Amortization method of low-value consumables and packages
1) Low-value consumables
1192024 Annual Report of Zhejiang NHU Co. Ltd.
Low-value consumables are amortized with one-off method.
2) Packages
Packages are amortized with one-off method.
(5) Criteria for recognizing and providing for provision for decline in value of inventories
At the balance sheet date inventories are measured at the lower of cost or net realizable value and provision for decline in value of
inventories is made for the difference between cost and net realizable value. The net realizable value of inventories used directly for
sale is determined in the normal course of production and operation by the estimated selling price of the inventories less estimated
selling expenses and related taxes; the net realizable value of inventories requiring processing is determined in the normal course of
production and operation by the estimated selling price of the finished goods produced less estimated costs to be incurred up to the
time of completion estimated selling expenses and related taxes; At the balance sheet date if there is a contract price agreed for one
part of the same inventory and no contract price exists for the other part the net realizable value is determined separately and compared
with its corresponding cost and the amount of provision or reversal of allowance for decline in value of inventories is determined
separately.
14 .Long-term equity investments
(1) Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial
and operating policy decisions of the investee but is not control or joint control of these policies.
(2) Determination of investment cost
1) For business combination under common control if the consideration of the combining party is that it makes payment in cash
transfers non-cash assets assumes its liabilities or issues equity securities on the date of combination it regards the share of the
carrying amount of the equity of the combined party included in the consolidated financial statements of the ultimate controlling party
as the initial cost of the investment. The difference between the initial cost of the long-term equity investments and the carrying amount
of the combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is
insufficient to offset any excess is adjusted to retained earnings.When long-term equity investments are obtained through business combination under common control achieved in stages the
Company determines whether it is a “bundled transaction”. If it is a “bundled transaction” stages as a whole are considered as one
transaction in accounting treatment. If it is not a “bundled transaction” on the date of combination investment cost is initially
recognized at the share of the carrying amount of net assets of the combined party included the consolidated financial statements of the
ultimate controlling party. The difference between the initial investment cost of long-term equity investments at the acquisition date
and the carrying amount of the previously held long-term equity investments plus the carrying amount of the consideration paid for the
newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to offset any excess is adjusted to
retained earnings.
2) For business combination not under common control investment cost is initially recognized at the acquisition-date fair value of
considerations paid.When long-term equity investments are obtained through business combination not under common control achieved in stages the
Company determined whether they are stand-alone financial statements or consolidated financial statements in accounting treatment:
1202024 Annual Report of Zhejiang NHU Co. Ltd.
a. In the case of stand-alone financial statements investment cost is initially recognized at the carrying amount of the previously held
long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity.b. In the case of consolidated financial statements the Company determines whether it is a “bundled transaction”. If it is a “bundledtransaction” stages as a whole are considered as one transaction in accounting treatment. If it is not a “bundled transaction” the
carrying amount of the acquirer’s previously held equity interest in the acquiree is remeasured at the acquisition-date fair value and
the difference between the fair value and the carrying amount is recognized in investment income; when the acquirer’s previously held
equity interest in the acquiree involves other comprehensive income under equity method the related other comprehensive income is
reclassified as income for the acquisition period excluding other comprehensive income arising from changes in net liabilities or assets
from remeasurement of defined benefit plan of the acquiree.
3) Long-term equity investments obtained through ways other than business combination: the initial cost of a long-term equity
investment obtained by making payment in cash is the purchase cost which is actually paid; that obtained on the basis of issuing equitysecurities is the fair value of the equity securities issued; that obtained through debt restructuring is determined according to “CASBE
12 – Debt Restructuring”; and that obtained through non-cash assets exchange is determined according to “CASBE 7 – Non-cashAssets Exchange”
(3) Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship it is accounted for with cost method; for long-term equity investments with
joint control or significant influence relationship it is accounted for with equity method.
(4)Disposal of a subsidiary in stages resulting in the Company’s loss of control
1) Principles for determining whether or not a transaction is a "package deal"
In the case of a step-by-step disposal of equity investments in subsidiaries through multiple transactions until loss of control the
Company determines whether a step-by-step transaction is a "package deal" by taking into account the terms and conditions of the
transaction agreement for each step of the step-by-step transaction the respective disposal consideration the target of the disposal the
method of disposal and the point of time of the disposal among other information. If the terms conditions and economic impacts of
each transaction meet one or more of the following conditions it is generally recognized that multiple transactions are "package deals":
a. The transactions are entered into at the same time or in consideration of the effects of each other;
b. The transactions as a whole achieve a complete business result;
c. the occurrence of one transaction is dependent on the occurrence of at least one other transaction;
d. a transaction is uneconomic when viewed in isolation but is economic when considered in conjunction with other transactions.
2) Accounting treatment for transactions that are not "package deals"
a. Individual financial statements
For equity interests disposed of the difference between the book value and the actual acquisition price is recognized in profit or loss
for the current period. For the remaining equity interest if it still has significant influence over the investee unit or exercises joint
control with other parties it is transferred to the equity method of accounting; if it can no longer exercise control joint control or
significant influence over the investee unit it is accounted for in accordance with the relevant provisions of "Accounting Standard for
Business Enterprises (ASBE) No. 22 - Recognition and Measurement of Financial Instruments".b. Consolidated financial statements
1212024 Annual Report of Zhejiang NHU Co. Ltd.
Prior to the loss of control the difference between the disposal price and the disposal long-term equity investment's corresponding
share of the subsidiary's net assets calculated on a continuous basis from the date of purchase or the date of consolidation is adjusted
to capital surplus (capital premium) and if capital premium is not sufficient to be eliminated it is eliminated to retained earnings.Upon loss of control over Atomics the remaining equity interest is remeasured at its fair value at the date of loss of control. The
difference between the sum of the consideration obtained from the disposal of the equity interest and the fair value of the remaining
equity interest less the share of the original subsidiary's net assets continuously measured from the date of purchase or the date of
consolidation based on the original shareholding ratio is recognized as investment income in the period in which control is lost and
goodwill is also eliminated. Other comprehensive income such as other comprehensive income related to equity investments in the
original subsidiaries should be transferred to investment income in the current period when control is lost.
3）Accounting treatment of "package transactions
a. Individual financial statements
Each transaction is accounted for as a disposal of a subsidiary and loss of control. However the difference between the disposal price
and the carrying value of the long-term equity investment corresponding to the disposal of the investment in each case before the loss
of control is recognized as other comprehensive income in the individual financial statements and transferred to profit or loss in the
period of the loss of control when the loss of control occurs.b. Consolidated financial statements
Each transaction is accounted for as a disposal of a subsidiary and loss of control. However the difference between the disposal price
and the share of the net assets of the subsidiary corresponding to the disposal of the investment in each case before the loss of control
is recognized as other comprehensive income in the consolidated financial statements and transferred to profit or loss in the period of
loss of control when the control is lost.
15. Fixed assets
(1) Recognition principles
Fixed assets are tangible assets held for use in the production of goods or rendering of services for rental to others or for
administrative purposes and expected to be used during more than one accounting year. Fixed assets are recognized if and only if it
is probable that future economic benefits associated with the assets will flow to the Company and the cost of the assets can be
measured reliably.
(2) Depreciation method
Residual value Annual depreciation
Categories Depreciation method Useful life (years)
proportion (%) rate (%)
Buildings and
Straight-line method 7-70 5 13.57-1.36
structures
General equipment Straight-line method 5-10 5 19.00-9.50
Special equipment Straight-line method 5-15 5 19.00-6.33
Transport facilities Straight-line method 5-7 5 19.00-13.57
16. Construction in progress
(1) Construction in progress is recognized if and only if it is probable that future economic benefits associated with the item will flow
to the Company and the cost of the item can be measured reliably. Construction in progress is measured at the actual cost incurred to
reach its designed usable conditions.
(2) Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usable conditions. When the
auditing of the construction in progress was not finished while reaching the designed usable conditions it is transferred to fixed assets
using estimated value first and then adjusted accordingly when the actual cost is settled but the accumulated depreciation is not to be
adjusted retrospectively.
1222024 Annual Report of Zhejiang NHU Co. Ltd.
Categories Criteria and point in time for carrying forward construction in progress to fixed assets
Buildings and structures Construction works reach the state of intended use from the date of reaching the state of
intended use
General equipment After installation and commissioning to meet the design requirements or contractual
standards
Special equipment After installation and commissioning to meet the design requirements or contractual
standards
17、Borrowing costs
(1) Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization it is capitalized and included in the costs of relevant assets; other borrowing costs are recognized as
expenses on the basis of the actual amount incurred and are included in profit or loss.
(2)Borrowing costs capitalization period
1) The borrowing costs are not capitalized unless the following requirements are all met: 1) the asset disbursements have already
incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or production activities which are
necessary to prepare the asset for its intended use or sale have already started.
2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is interrupted abnormally and
the interruption period lasts for more than 3 months the capitalization of the borrowing costs is suspended; the borrowing costs incurred
during such period are recognized as expenses and are included in profit or loss till the acquisition and construction or production of
the asset restarts.
3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready for the intended use or
sale the capitalization of the borrowing costs is ceased.
(3)Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization the to-be-capitalized
amount of interests is determined in light of the actual interest expenses incurred (including amortization of premium or discount based
on effective interest method) of the special borrowings in the current period less the interest income on the unused borrowings as a
deposit in the bank or as a temporary investment; where a general borrowing is used for the acquisition and construction or production
of assets eligible for capitalization the Company calculates and determines the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements less the general
borrowing by the capitalization rate of the general borrowing used.
18. Intangible assets
(1) Measurement method useful lives and impairment test
1)Intangible assets include land use right patent right non-patented technology etc. The initial measurement of intangible assets is
based on its cost.
2)For intangible assets with finite useful lives their amortization amounts are amortized within their useful lives systematically and
reasonably if it is unable to determine the expected realization pattern reliably intangible assets are amortized by the straight-line
method with details as follows:
Items Amortization
Useful life and the basis for its determination
method
Land use right 50、70(Based on the number of years contained in linear method
the warrants)
1232024 Annual Report of Zhejiang NHU Co. Ltd.
Items Amortization
Useful life and the basis for its determination
method
Software 10(Based on projected years of benefit) linear method
Patent right 10 (Based on projected years of benefit) linear method
Non-patented technology 15 (Based on projected years of benefit) linear method
(2) Scope of R&D expenditures and related accounting treatment
1) The scope of R&D expenditures to be pooled
* Personnel labor costs
Personnel labor costs include wages and salaries basic pension insurance premiums basic medical insurance premiums unemployment
insurance premiums work injury insurance premiums maternity insurance premiums and housing fund of the Company's research and
development personnel as well as labor costs of external research and development personnel.Where research and development personnel serve on multiple research and development projects at the same time labor costs are
recognized on the basis of the records of hours worked by research and development personnel for each research and development
project provided by the Company's management and are allocated on a pro rata basis among the different research and development
projects.Where personnel directly engaged in research and development activities and external research and development personnel are
simultaneously engaged in non-research and development activities the Company allocates the personnel labor costs actually incurred
by the research and development personnel between research and development expenses and production and operating expenses based
on the records of their working hours in different positions in accordance with the proportion of their actual working hours and other
reasonable methods.* Direct input costs
Direct input costs refer to the relevant expenditures actually incurred by the Company for the implementation of research and
development activities. It includes:
a. directly consumed materials fuel and power costs;
b. the development and manufacturing costs of molds and process equipment used for intermediate tests and product trial production
the purchase costs of samples prototypes and general testing means that do not constitute fixed assets and the inspection costs of trial
products;
c.) the costs of operating and maintaining adjusting inspecting testing and repairing instruments and equipment used for research and
development activities.* Depreciation expense and long-term amortization expense
Depreciation expense refers to the depreciation of instruments equipment and buildings in use used in research and development
activities.If instruments equipment and buildings in use are used for research and development activities and are also used for non-research and
development activities necessary records are kept of the use of such instruments equipment and buildings in use and the depreciation
expense actually incurred is allocated between research and development expenses and production and operating expenses using a
reasonable method based on factors such as actual man-hours worked and square footage of space utilized.
1242024 Annual Report of Zhejiang NHU Co. Ltd.
Long-term amortized expenses are long-term amortized expenses incurred in the course of alteration modification renovation and
repair of research and development facilities which are summarized on the basis of actual expenditures and amortized equally over a
specified period of time.* Amortization expense of intangible assets
Amortization expense of intangible assets is the amortization expense of software intellectual property and non-patented technologies
(know-how licenses designs and calculation methods etc.) used in research and development activities.* Design costs
Design expenses are expenses incurred for the conception development and manufacture of new products and processes design of
processes technical specifications formulation of protocols operational characteristics etc. including expenses related to creative
design activities for obtaining innovative creative and breakthrough products.* Equipment debugging costs and test costs
Equipment debugging costs are costs incurred for research and development activities in the process of preparing workpieces including
costs incurred for activities such as the development of special specialized production machines changes in production and quality
control procedures or the development of new methods and standards.Costs incurred for routine tooling preparation and industrial engineering for mass production and commercialization are not included
in the scope of collection.* Commissioned external research and development costs
Entrusted external research and development expenses are expenses incurred by the Company for research and development activities
entrusted to other organizations or individuals inside or outside the country (the results of the research and development activities are
owned by the Company and are closely related to the Company's main business operations).* Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to research and development activities
including technical library and data fees data translation fees expert consultation fees insurance fees for high-tech research and
development search demonstration evaluation appraisal and acceptance fees for research and development results application fees
registration fees and agency fees for intellectual property rights meeting fees travel fees and communication fees.
2）Expenditures on the research phase of an internal project are recognized as profit or loss when they are incurred. An intangible
asset arising from the development phase of an internal project is recognized if the Company can demonstrate all of the followings: 1)
the technical feasibility of completing the intangible asset so that it will be available for use or sale; 2) its intention to complete the
intangible asset and use or sell it; 3) how the intangible asset will generate probable future economic benefits among other things the
Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or if it is to be
used internally the usefulness of the intangible asset; 4) the availability of adequate technical financial and other resources to complete
the development and to use or sell the intangible asset; and 5) its ability to measure reliably the expenditure attributable to the intangible
asset during its development.
19. Impairment of part of long-term assets
For long-term assets such as long-term equity investments fixed assets construction in progress right-of-use assets intangible assets
with finite useful lives etc. if at the balance sheet date there is indication of impairment the recoverable amount is to be estimated.For goodwill recognized in business combination and intangible assets with indefinite useful lives no matter whether there is indication
1252024 Annual Report of Zhejiang NHU Co. Ltd.
of impairment impairment test is performed annually. Impairment test on goodwill is performed on related asset group or asset group
portfolio.When the recoverable amount of such long-term assets is lower than their carrying amount the difference is recognized as provision
for assets impairment through profit or loss.
20. Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year (excluding one year). They
are recorded with actual cost and evenly amortized within the beneficiary period or stipulated period. If items of long-term prepayments
fail to be beneficial to the following accounting periods residual values of such items are included in profit or loss.
21. Employee benefits
(1) Short-term employee benefits
The Company recognizes in the accounting period in which an employee provides service short-term employee benefits actually
incurred as liabilities with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
1) The Company recognizes in the accounting period in which an employee provides service the contribution payable to a defined
contribution plan as a liability with a corresponding charge to profit or loss or the cost of a relevant asset.
2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
* In accordance with the projected unit credit method using unbiased and mutually compatible actuarial assumptions to estimate
related demographic variables and financial variables measure the obligations under the defined benefit plan and determine the
periods to which the obligations are attributed. Meanwhile the Company discounts obligations under the defined benefit plan to
determine the present value of the defined benefit plan obligations and the current service cost;
* When a defined benefit plan has assets the Company recognizes the deficit or surplus by deducting the fair value of defined
benefit plan assets from the present value of the defined benefit plan obligation as a net defined benefit plan liability or net defined
benefit plan asset. When a defined benefit plan has a surplus the Company measures the net defined benefit plan asset at the lower of
the surplus in the defined benefit plan and the asset ceiling;
* At the end of the period the Company recognizes the following components of employee benefits cost arising from defined
benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c. changes as a result of
remeasurement of the net defined benefit liability (asset). Item a and item b are recognized in profit or loss or the cost of a relevant
asset. Item c is recognized in other comprehensive income and is not to be reclassified subsequently to profit or loss. However the
Company may transfer those amounts recognized in other comprehensive income within equity.
1262024 Annual Report of Zhejiang NHU Co. Ltd.
(3) Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination benefits with a
corresponding charge to profit or loss at the earlier of the following dates: a. when the Company cannot unilaterally withdraw the offer
of termination benefits because of an employment termination plan or a curtailment proposal; or b. when the Company recognizes cost
or expenses related to a restructuring that involves the payment of termination benefits.
(4) Other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as a defined contribution
plan those benefits are accounted for in accordance with the requirements relating to defined contribution plan while other benefits
are accounted for in accordance with the requirements relating to defined benefit plan. The Company recognizes the cost of employee
benefits arising from other long-term employee benefits as the followings: a. service cost; b. net interest on the net liability or net assets
of other long-term employee benefits; and c. changes as a result of remeasurement of the net liability or net assets of other long-term
employee benefits. As a practical expedient the net total of the aforesaid amounts is recognized in profit or loss or included in the cost
of a relevant asset.
22. projected liability
（1）When an obligation arising from contingencies such as guarantees given to others litigation matters product quality assurance
loss contracts etc. becomes a present obligation of the company and it is probable that the performance of the obligation will result in
an outflow of economic benefits to the company and the amount of the obligation can be measured reliably the company recognizes
the obligation as a projected liability.
（2）The company initially measures a projected liability on the basis of the best estimate of the expenditure required to settle the
relevant present obligation and reviews the carrying amount of the projected liability at the balance sheet date.
23. Revenue
Accounting policies on revenue recognition and measurement
（1）Revenue recognition principles
At contract inception the Company shall assess the contracts and shall identify each performance obligation in the contracts and
determine whether the performance obligation should be satisfied over time or at a point in time.The Company satisfies a performance obligation over time if one of the following criteria is met otherwise the performance obligation
is satisfied at a point in time: 1) the customer simultaneously receives and consumes the economic benefits provided by the Company’s
performance as the Company performs; 2) the customer can control goods as they are created by the Company’s performance; 3) goods
created during the Company’s performance have irreplaceable uses and the Company has an enforceable right to the payments for
performance completed to date during the whole contract period.For each performance obligation satisfied over time the Company shall recognize revenue over time by measuring the progress towards
complete satisfaction of that performance obligation. In the circumstance that the progress cannot be measured reasonably but the
costs incurred in satisfying the performance obligation are expected to be recovered the Company shall recognize revenue only to the
extent of the costs incurred until it can reasonably measure the progress. For each performance obligation satisfied at a point in time
the Company shall recognize revenue at the time point that the customer obtains control of relevant goods or services. To determine
whether the customer has obtained control of goods the Company shall consider the following indications: 1) the Company has a
1272024 Annual Report of Zhejiang NHU Co. Ltd.
present right to payment for the goods i.e. the customer is presently obliged to pay for the goods; 2) the Company has transferred the
legal title of the goods to the customer i.e. the customer has legal title to the goods; 3) the Company has transferred physical possession
of the goods to the customer i.e. the customer has physically possessed the goods; 4) the Company has transferred significant risks
and rewards of ownership of the goods to the customer i.e. the customer has obtained significant risks and rewards of ownership of
the goods; 5) the customer has accepted the goods; 6) other evidence indicating the customer has obtained control over the goods.
（2）Revenue measurement principle
1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation. The transaction price is
the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer
excluding amounts collected on behalf of third parties and those expected to be refunded to the customer.
2) If the consideration promised in a contract includes a variable amount the Company shall confirm the best estimate of variable
consideration at expected value or the most likely amount. However the transaction price that includes the amount of variable
consideration only to the extent that it is high probable that a significant reversal in the amount of cumulative revenue recognized will
not occur when the uncertainty associated with the variable consideration is subsequently resolved.
3) In the circumstance that the contract contains a significant financing component the Company shall determine the transaction price
based on the price that a customer would have paid for if the customer had paid cash for obtaining control over those goods or services.The difference between the transaction price and the amount of promised consideration is amortized under effective interest method
over contractual period. The effects of a significant financing component shall not be considered if the Company expects at the contract
inception that the period between when the customer obtains control over goods or services and when the customer pays consideration
will be one year or less.
4) For contracts containing two or more performance obligations the Company shall determine the stand-alone selling price at contract
inception of the distinct good underlying each performance obligation and allocate the transaction price to each performance obligation
on a relative stand-alone selling price basis.Different operating models for the same type of business involving different revenue recognition and measurement methods
(1) Revenue from sales of products
The Company’s main products are nutrition flavor and fragrance new polymer materials etc. Sales of products are performance
obligations satisfied at a point in time. Revenue from domestic sales is recognized when the Company has delivered goods to the
customer as agreed by contract and has obtained delivery note signed by the customer and the Company has collected the payments
or has obtained the right to the payments and related economic benefits are highly probable to flow to the Company. Revenue from
overseas sales is recognized when the Company has declared goods to the customs based on contractual agreements and has obtained
a bill of lading and the Company has collected the payments or has obtained the right to the payments and related economic benefits
are highly probable to flow to the Company.
(2) Revenue from real estate sales
Real estate sales are performance obligations satisfied at a point in time. Revenue from real estate sales is recognized when the
Company has delivered properties to the customer as agreed by contract and has obtained the client acceptance receipts signed by the
customer and the Company has collected the payments or has obtained the right to the payments and related economic benefits are
highly probable to flow to the Company.
1282024 Annual Report of Zhejiang NHU Co. Ltd.
24. Contract assets contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between its performance
obligations and customers’ payments. Contract assets and contract liabilities under the same contract shall offset each other and be
presented on a net basis.The Company presents an unconditional right to consideration (i.e. only the passage of time is required before the consideration is due)
as a receivable and presents a right to consideration in exchange for goods that it has transferred to a customer (which is conditional
on something other than the passage of time) as a contract asset.The Company presents an obligation to transfer goods to a customer for which the Company has received consideration (or the amount
is due) from the customer as a contract liability.
25．Government grants
(1) Government grants shall be recognized if and only if the following conditions are all met:
1) the Company will comply with the conditions attaching to the grants;
2) the grants will be received. Monetary government grants are measured at the amount received or receivable. Non-monetary
government grants are measured at fair value and can be measured at nominal amount in the circumstance that fair value cannot be
assessed.
（2）Basis of judgment and accounting treatment of government grants related to assets
Government grants that are stipulated in government documents to be used for the purchase construction or other formation of long-
term assets are classified as asset-related government grants. If the government documents are unclear the government grants are
judged on the basis of the basic conditions that must be met in order to obtain the grants and those that are based on the basic conditions
of purchasing constructing or otherwise forming long-term assets are classified as asset-related government grants. Government grants
related to assets are offset against the carrying amount of the related assets or recognized as deferred income. If the government grants
related to assets are recognized as deferred income they are recognized in profit or loss in a reasonable and systematic manner over
the useful lives of the related assets. Government grants that are measured at a nominal amount are recognized directly in profit or loss.If the related assets are sold transferred retired or destroyed before the end of their useful lives the unallocated balance of the related
deferred income is transferred to profit or loss in the period in which the assets are disposed of.
（3）Basis of judgment and accounting treatment of government grants related to revenues
Government grants other than asset-related government grants are classified as revenue-related government grants. For government
grants that contain both asset-related and revenue-related components if it is difficult to distinguish between asset-related and revenue-
related government grants the entire government grant is categorized as revenue-related government grants. Government grants related
to income that are used to compensate for related costs or losses in future periods are recognized as deferred income and are credited
to current profit or loss or charged to current cost in the period in which the related costs or losses are recognized; those that are used
to compensate for related costs or losses that have already been incurred are directly credited to current profit or loss or charged to
current cost.
1292024 Annual Report of Zhejiang NHU Co. Ltd.
（4）Government grants that are related to the Company's daily operations are recognized in other income or offset against related
costs and expenses in accordance with the substance of the economic operations. Government grants that are not related to the
Company's daily activities are recognized as non-operating income or expenses.
（5）Policy interest subvention
1) If the treasury disburses the subsidized interest funds to a lending bank and the lending bank provides loans to the Company at a
policy preferential interest rate the actual amount of the loan received is used as the recorded value of the loan and the related
borrowing costs are calculated based on the principal amount of the loan and the policy preferential interest rate.
2) If the subsidized interest rate funds are directly allocated to the company by the treasury the corresponding subsidized interest rate
shall be offset against the relevant borrowing costs.
26. Deferred tax assets/Deferred tax liabilities
（1）Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the carrying amount
and tax base of assets and liabilities (and the difference of the carrying amount and tax base of items not recognized as assets and
liabilities but with their tax base being able to be determined according to tax laws) and in accordance with the tax rate applicable to
the period during which the assets are expected to be recovered or the liabilities are expected to be settled.
（2）A deferred tax asset is recognized to the extent of the amount of the taxable income which is most likely to obtain and which
can be deducted from the deductible temporary difference. At the balance sheet date if there is any exact evidence that it is probable
that future taxable income will be available against which deductible temporary differences can be utilized the deferred tax assets
unrecognized in prior periods are recognized.
（3）At the balance sheet date the carrying amount of deferred tax assets is reviewed. The carrying amount of a deferred tax asset is
reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow the benefit of the deferred
tax asset to be utilized. Such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable income
will be available.
（4） The income tax and deferred tax for the period are treated as income tax expenses or income through profit or loss excluding
those arising from the following circumstances: 1) business combination; and 2) the transactions or items directly recognized in equity.
（5）Deferred income tax assets and deferred income tax liabilities are stated at net amounts after offsetting when the following
conditions are simultaneously met: 1) there is a legal right to settle current income tax assets and current income tax liabilities on a net
basis; 2) the deferred income tax assets and deferred income tax liabilities relate to income taxes levied by the same tax authority on
the same taxpaying entity or relate to different taxpaying entities but are not realized or settled during each significant future period in
which the deferred income tax assets and deferred income tax liabilities are reversed. each future period in which the deferred income
tax assets and deferred income tax liabilities are reversed to the extent that the taxable entity involved intends to either settle the current
income tax assets and current income tax liabilities on a net basis or to acquire the assets and settle the liabilities at the same time.
27. Leases
（1） Accounting treatment of leases as les see
At the commencement date the Company recognizes a lease that has a lease term of 12 months or less as a short-term lease which
shall not contain a purchase option; the Company recognizes a lease as a lease of a low-value asset if the underlying asset is of low
1302024 Annual Report of Zhejiang NHU Co. Ltd.
value when it is new. If the Company subleases an asset or expects to sublease an asset the head lease does not qualify as a lease of a
low-value asset.For all short-term leases and leases of low-value assets lease payments are recognized as cost or profit or loss with straight-line
method/unit-of-production method over the lease term.Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach the Company recognizes
right-of-use assets and lease liabilities at the commencement date.
1) Right-of-use assets
A right-of-use asset is initially measured at cost which consists of: * the initial measurement amount of the lease liability; * lease
payments made on or before the commencement date of the lease term net of amounts related to lease incentives received if any; *
initial direct costs incurred by the lessee; and* costs expected to be incurred by the lessee in order to dismantle and remove the leased
asset to rehabilitate the site where the leased asset is located or to restore the leased asset to the agreed-upon condition under the terms
of the lease. * Costs expected to be incurred by the lessee for dismantling and removing the leased asset or restoring the leased asset
to the agreed state under the lease terms.The Company depreciates right-of-use assets on a straight-line basis. If ownership of the leased assets can be reasonably determined at
the end of the lease term depreciation is provided over the remaining useful life of the leased assets. If it is not reasonably certain that
the Company will obtain ownership of the leased asset by the end of the lease term the Company depreciates the asset over the shorter
of the lease term or the remaining useful life of the leased asset.
2) Lease liability
At the commencement date the Company measures the lease liability at the present value of the lease payments that are not paid at
that date discounted using the interest rate implicit in the lease. If that rate cannot be readily determined the Company’s incremental
borrowing rate shall be used. Unrecognized financing expenses calculated at the difference between the lease payment and its present
value are recognized as interest expenses over the lease term using the discount rate which has been used to determine the present
value of lease payment and included in profit or loss. Variable lease payments not included in the measurement of lease liabilities are
included in profit or loss in the periods in which they are incurred.After the commencement date if there is a change in the following items: a. actual fixed payments; b. amounts expected to be payable
under residual value guarantees; c. an index or a rate used to determine lease payments; d. assessment result or exercise of purchase
option extension option or termination option. the Company remeasures the lease liability based on the present value of lease payments
after changes and adjusts the carrying amount of the right-of-use asset accordingly. If the carrying amount of the right-of-use asset is
reduced to zero but there shall be a further reduction in the lease liability the remaining amount shall be recognized into profit or loss.
（2） Accounting for leases as lessor
At the inception date of a lease the Company classifies leases that transfer substantially all the risks and rewards associated with
ownership of the leased asset as finance leases and all other leases as operating leases.
1) Operating leases
The Company recognizes lease receipts as rental income on a straight-line basis in each period of the lease term. Initial direct costs
incurred are capitalized and amortized on the same basis as rental income and recognized in profit or loss in the current period. Variable
lease payments related to operating leases that are not recognized as lease receipts are recognized in profit or loss when they are actually
incurred.
2) Finance leases
1312024 Annual Report of Zhejiang NHU Co. Ltd.
At the commencement date of the lease term the Company recognizes a finance lease receivable based on the net investment in the
lease (the sum of the unguaranteed residual value and the present value of the lease receipts not yet received at the commencement
date of the lease term discounted at the interest rate embedded in the lease) and derecognizes the asset under a finance lease. During
each period of the lease term the Company calculates and recognizes interest income based on the interest rate embedded in the lease.Variable lease payments acquired by the Company that are not included in the measurement of the net investment in the lease are
recognized in profit or loss when they are actually incurred.
28. Work safety fund
Safety production fees extracted by the Company in accordance with the Administrative Measures for the Extraction and Use of
Enterprise Production Safety Expenses (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the Ministry of Emergency
Response are included in the cost of the relevant products or in current profit or loss and are also recorded in the account of "special
reserve". When the safety production fee is used if it is an expense it is directly deducted from the special reserve. If a fixed asset is
formed the expenditure incurred is summarized under the "construction in progress" account and recognized as a fixed asset when the
safety project is completed and reaches the intended state of use; at the same time the special reserve is deducted in accordance with
the cost of forming the fixed asset and accumulated depreciation of the same amount is recognized and no depreciation will be provided
for the fixed asset in the subsequent period.
29. Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization management requirements and
internal reporting system. An operating segment is a component of the Company:
（1） that engages in business activities from which it may earn revenues and incur expenses;
（2）whose financial performance is regularly reviewed by the Management to make decisions about resource to be allocated to the
segment and to assess its performance; and
（3）for which accounting information regarding financial position financial performance and cash flows is available through analysis.
30.Accounting treatment related to share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital or rewarding its employees if the purchased
shares are to be kept as treasury shares the treasury shares are recorded at the cash distributed to existing shareholders for repurchase;
if the purchased shares are to be retired the difference between the total par value of shares retired and the cash distributed to existing
shareholders for repurchase is to reduce capital reserve or retained earnings when the capital reserve is not enough to reduce. If the
Company repurchases vested equity instruments in equity-settled share-based payment transactions with employees cost of treasury
shares granted to employees and capital reserve (other capital reserve) accumulated within the vesting period are to be written off on
the payment made to employees with a corresponding adjustment in capital reserve (share premium).
31.Significant changes in accounting policies and estimates
(1) Significant changes in accounting policies
√ Applicable □ Not Applicable
Unit: RMB Yuan
Statement Items Significantly
Contents and reasons
Affected
Effective January 1 2024 the Company implemented the provisions of Interpretation No. 17 ofthe Accounting Standards for Business Enterprises (ASBE) “Classification of Current and unaffectedNoncurrent Liabilities” issued by the Ministry of Finance (MOF).Effective January 1 2024 the Company implemented the provisions of Accounting Standards unaffected
1322024 Annual Report of Zhejiang NHU Co. Ltd.
Interpretation No. 17 “Disclosures about Vendor Financing Arrangements” issued by the Ministry
of Finance.Effective January 1 2024 the Company implemented the provisions of “Accounting StandardInterpretation No. 17 on Accounting for Sale and Leaseback Transactions” issued by the Ministry
unaffected
of Finance and made retrospective adjustments for sale and leaseback transactions conducted after
January 1 2021.Effective January 1 2024 the Company implemented the provisions of ASBE Interpretation No.
18 “Accounting for Guarantees that Are Not Individual Performance Obligations” issued by the unaffected
Ministry of Finance.
(2) Significant changes in accounting estimates
□ Applicable √ Not Applicable
（3）Adjustments to items related to financial statements at the beginning of the year of first-time
implementation of new accounting standards from 2024 onwards
□ Applicable √ Not Applicable
VI. Taxes
1. Main taxes and tax rates
Taxes Tax bases Tax rates
13% 9% 6% 5% and 19%; export goods enjoy
The output tax calculated based on the revenue the “exemption credit and refund” policy and
from sales of goods or rendering of services in the refund rate ranges from 0% to 13%; the
Value-added tax (VAT)
accordance with the tax law net of the input tax subsidiary Zhejiang NHU Import & Export Co.that is allowed to be deducted in the current period Ltd. enjoys the “refund upon collection” policy
and the refund rate ranges from 0% to 13%.Urban maintenance and
Turnover tax actually paid 5%、7%
construction tax
8.25%、15%、16.5%、17%、20%、22%、Enterprise income tax Taxable income
25%、25.5%、34%、34.6%
A four-grade progressive tax system is adopted.The rates are: 30% for appreciated value not over
50% of total deductible amount; 40% for
The incremental amount arising from the transfer
appreciated value over 50% but not over 100%
Land appreciation tax of state-owned land use right and the buildings and
of total deductible amount; 50% for appreciated
structures that are constructed on the land
value over 100% but not over 200% of total
deductible amount; and 60% for appreciated
value over 200% of total deductible amount.For housing property levied on the basis of price
housing property tax is levied at the rate of 1.2%
of the balance after deducting 30% of the cost; for
Housing property tax 1.2%、12%
housing property levied on the basis of rent
housing property tax is levied at the rate of 12% of
rent revenue.Education surcharge Turnover tax actually paid 3%
Local education surcharge Turnover tax actually paid 2%
Solidarity surcharge
Income tax payable 5.5%
[Note]
Trade tax [Note] Taxable income 13.3%
Note: The subsidiaries NHU EUROPE GmbH NHU PERFORMANCE MATERIALS GMBH and Bardoterminal GmbH are subject
to these rates.
1332024 Annual Report of Zhejiang NHU Co. Ltd.
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
The Company 15%
Shangyu NHU Bio-Chem Co. Ltd. 15%
Shandong NHU Pharmaceutical Co. Ltd. 15%
Shandong NHU Vitamins Co. Ltd. 15%
Shandong NHU Amino-acids Co. Ltd. 15%
Zhejiang NHU Special Materials Co. Ltd. 15%
Heilongjiang NHU Biotechnology Co. Ltd. 15%
Zhejiang NHU Pharmaceutical Co. Ltd 15%
Shandong NHU Fine ChemicalScience and Technology Co. Ltd 15%
Adoption of the territorial source principle of taxation with
profits tax rate of 8.25% for the first HK$2 million of Hong
NHU (Hong Kong) Trading Co. Ltd. Kong-sourced profits and 16.5% for the subsequent Hong
Kong-sourced profits while profits sourced elsewhere are
not subject to Hong Kong profits tax
NHU EUROPE GMBH 15%
NHU Performance Materials GMBH 15%
Bardoterminal GmbH 15%
NHU LIFE SCIENCE GmbH 15%
NHU Singapore PTE. LTD. 17%
Shandong New Shuang'an Biotechnology Co. Ltd 20%
NHU/Chr. Olesen Latin America A/S 22%
NHU/CHR. OLESEN MEXICO SAPI DE CV 25.5%
NHU/CHR. OLESEN BRASIL LTDA 34%
CONG TY TNHH NHU VIETNAM 20%
NHU Japan Co. Ltd 34.6%
Subjects of taxation other than those mentioned above 25%
2. Tax preferential policies
（1）Enterprise income tax
1) Tax incentives for high-tech enterprises
* ccording to the Hi-Tech Enterprise Certificate (GR202333009429) issued by Zhejiang Provincial Department of Science and
Technology Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service State Taxation Administration (STA)
the Company is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2023 to 2025. It is subject to the
rate of 15% for enterprise income tax in 2024.* According to the Hi-Tech Enterprise Certificate (GR202233002530) issued by Zhejiang Provincial Department of Science and
Technology Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service STA the subsidiary Shangyu NHU Bio-
Chem Co. Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2022 to 2024. It is subject to
the rate of 15% for enterprise income tax in 2024.
1342024 Annual Report of Zhejiang NHU Co. Ltd.
* ccording to the Hi-Tech Enterprise Certificate (GR202337003609) issued by Department of Science and Technology of Shandong
Province Shandong Provincial Department of Finance and Shandong Provincial Tax Service STA the subsidiary Shandong NHU
Pharmaceutical Co. Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2023 to 2025. It is
subject to the rate of 15% for enterprise income tax in 2024.* According to the Hi-Tech Enterprise Certificate (GR202337002254) issued by Department of Science and Technology of Shandong
Province Shandong Provincial Department of Finance and Shandong Provincial Tax Service STA the grandson Shandong NHU
Vitamins Co. Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2023 to 2025. It is subject
to the rate of 15% for enterprise income tax in 2024.* According to the Hi-Tech Enterprise Certificate (GR202437003425) issued by Department of Science and Technology of Shandong
Province Shandong Provincial Department of Finance and Shandong Provincial Tax Service STA the subsidiary Shandong NHU
Amino Acid Co. Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2024to 2026. It is
subject to the rate of 15% for enterprise income tax in 2024.* According to the Hi-Tech Enterprise Certificate (GR202433008150)) issued by Zhejiang Provincial Department of Science and
Technology Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service STA the subsidiary Zhejiang NHU
Special Materials Co. Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2024to 2026. It is
subject to the rate of 15% for enterprise income tax in 2024.* According to the Hi-Tech Enterprise Certificate (GR202423000652) issued by Heilongjiang Provincial Department of Science and
Technology Heilongjiang Provincial Department of Finance and Heilongjiang Provincial Tax Service STA the subsidiary
Heilongjiang NHU Biotechnology Co. Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from
2024 to 2026. It is subject to the rate of 15% for enterprise income tax in 2024.
* According to the Hi-Tech Enterprise Certificate (GR202233004365) issued by Zhejiang Provincial Department of Science and
Technology Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service STA the subsidiary Zhejiang NHU
Pharmaceutical Co. Ltd. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from 2022 to 2024. It is
subject to the rate of 15% for enterprise income tax in 2024.* According to the Hi-Tech Enterprise Certificate (GR202237005690) issued by Department of Science and Technology of Shandong
Province Shandong Provincial Department of Finance and Shandong Provincial Tax Service STA the subsidiary Shandong NHU
Fine ChemicalScience and Technology Co. is accredited as a hi-tech enterprise and entitled to enjoy the tax preferential policy from
2021 to 2023. It is subject to the rate of 15% for enterprise income tax in 2024.
2) Tax incentives for small and micro enterprises
According to the Announcement of the Ministry of Finance and the State Administration of Taxation on Further Supporting the
Development of Small and Micro Enterprises and Individual Entrepreneurs in Relation to Tax Policies (Announcement of the Ministry
of Finance and the State Administration of Taxation No. 12 of 2023): the policy of reducing the calculation of taxable income by 25%
for small and micro-profit enterprises and paying the enterprise income tax at a rate of 20% was extended to December 31 2027 for
implementation. Ltd. a subsidiary of the Company is subject to enterprise income tax at the corresponding preferential tax rate.
3) Overseas Enterprise income tax
1352024 Annual Report of Zhejiang NHU Co. Ltd.
According to Section 14 of the Inland Revenue Ordinance Chapter 112 of the Laws of Hong Kong Hong Kong adopts the territorial
source principle of taxation i.e. only profits derived from Hong Kong are subject to Hong Kong tax whereas profits derived from
elsewhere are not subject to Hong Kong profits tax. The subsidiary Sun Woo Shing (Hong Kong) Trading Company Limited is subject
to enterprise income tax at the corresponding preferential tax rate.
（2）VAT
Pursuant to the ''Announcement of the Ministry of Finance and the State Administration of Taxation on the Policy of Value-added Tax
Credits for Enterprises in the Advanced Manufacturing Sector'' (Announcement of the Ministry of Finance and the State Administration
of Taxation No. 43 of 2023) from 1 January 2023 to 31 December 2027 enterprises in the advanced manufacturing sector are permitted
to offset the value-added tax payable against the current period's creditable input tax by adding a 5% credit to the current period's
creditable input tax amount. The Company and its subsidiaries Shangyu NHU Bio-Chem Co. Ltd
Zhejiang NHU Pharmanceutical Co.Ltd.Zhejiang NHU Special Materials Co.Ltd.Shaoxing Yuchen New Materials Co.Ltd.Shandong NHU Vitamins Co.Ltd Shandong NHU Amino Acid Co. Ltd Shangdong NHU Pharmanceutical Co.Ltd. Shandong
NHU Fine ChemicalScience and Technology Co. Ltd Heilongjiang NHU Biotechnology Co. Ltd. are entitled to the Preferential
policy of input tax credit.VII. Notes to items of consolidated financial statements
1. Cash and bank balances
Unit: RMB Yuan
Items Closing balance Opening balance
Cash on hand 12825.19 21747.98
Cash in bank 7880453812.72 4445046788.85
Other cash and bank balances 56038167.74 97192582.33
Digital Currency - RMB 1100027.82
Total 7936504805.65 4543361146.98
Including: Deposited overseas 464483762.87 89207212.60
Other remarks：Other cash and bank balances
Unit: RMB Yuan
Items Closing balance Opening balance
Deposit for bank acceptance 30809898.16 77905369.24
Forex Option Margin 8800000.00
Letter of Guarantee Deposit 8183592.83 500000.00
Deposit for letters of credit 1458021.83 12048779.84
Deposit for water fees 1263178.80 661215.83
Deposit for construction safety 875023.57 870050.56
Deposit for engineering labor costs 854699.63 853216.21
Deposit for ETC 22500.00 22500.00
Alipay balance 8401.07 8401.07
1362024 Annual Report of Zhejiang NHU Co. Ltd.
Deposited investment fund 1.85 393449.58
Customs Margin 3762850.00 3929600.00
Total 56038167.74 97192582.33
2. Held-for-trading financial assets
Unit: RMB Yuan
Items Closing balance Opening balance
Financial assets at fair value through
745816.34173056050.95
profit or loss
Including：
Including: Financial products with
145000000.00
guaranteed principal and floating income
Derivative financial assets 745816.34 28056050.95
Total 745816.34 173056050.95
3. Notes receivable
(1) Details on categories
Unit: RMB Yuan
Items Closing balance Opening balance
Bank acceptance 292562093.90 116125267.70
Total 292562093.90 116125267.70
(2) Disclosure by bad debt accrual method
Unit: RMB Yuan
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Notes receivable with provision for 292562093.90 100.00% 292562093.90
bad debts made on a collective basis
Including:
Bank acceptance 292562093.90 100.00% 292562093.90
Commercial Acceptance
Total 292562093.90 100.00% 292562093.90
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Notes receivable with provision for 116125267.70 100.00% 116125267.70
bad debts made on a collective basis
Including:
1372024 Annual Report of Zhejiang NHU Co. Ltd.
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Bank acceptance 116125267.70 100.00% 116125267.70
Commercial Acceptance
Total 116125267.70 100.00% 116125267.70
Provision for bad debts is made on a portfolio basis:
Unit: RMB Yuan
Closing balance
Categories
Book balance Provision for bad debts Provision proportion
Bankers' acceptances
292562093.90
portfolio
Total 292562093.90
If the allowance for bad debts on notes receivable is based on a general model of expected credit losses:
□Applicable □Not applicable
（3） Pledged notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance of pledged notes
Bank acceptance 99511561.32
Total 99511561.32
（4） Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance derecognized Closing balance not yet derecognized
Bank acceptance 161456130.48
Total 161456130.48
The acceptors of these bankers' acceptances are commercial banks with high creditworthiness and the probability of non-payment of
bankers' acceptances accepted by them at maturity is relatively low therefore the Company will derecognize these bankers' acceptances
that have been endorsed or discounted. However if the notes are not paid when due the Company will still be jointly and severally
liable to the bearer in accordance with the provisions of the Bills of Exchange Act.
4. Accounts receivable
（1） Age analysis
Unit: RMB Yuan
Ages Closing balance Opening balance
Within 1 year (inclusive) 3820258543.87 2540372908.81
1-2 years 30298898.20 87390861.85
2-3 years 956846.12
Over 3 years 2106280.80 2106280.80
3-4 years 57000.00
1382024 Annual Report of Zhejiang NHU Co. Ltd.
4-5 years 57000.00 203200.00
Over 5 years 2049280.80 1846080.80
Total 3853620568.99 2629870051.46
（2） Details on categories
Unit: RMB Yuan
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Accounts receivable with provision
for bad debts made on a collective 3853620568.99 100.00% 199944464.62 5.19% 3653676104.37
basis
Total 3853620568.99 100.00% 199944464.62 5.19% 3653676104.37
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Accounts receivable with provision
for bad debts made on a collective 2629870051.46 100.00% 146603098.58 5.57% 2483266952.88
basis
Total 2629870051.46 100.00% 146603098.58 5.57% 2483266952.88
Provision for bad debts is made on a portfolio basis:
Unit: RMB Yuan
Closing balance
Ages Closing balance of provision Proportion to the total balance
Closing balance
for bad debts of receivables (%)
Within 1 year (inclusive) 3820258543.87 191012927.28 5.00%
1-2 years 30298898.20 6059779.64 20.00%
2-3 years 956846.12 765476.90 80.00%
Over 3 years 2106280.80 2106280.80 100.00%
Total 3853620568.99 199944464.62
A description of the basis for determining the portfolio:
Provision for bad debts using an ageing portfolio
If the allowance for bad debts for accounts receivable is based on the general model of expected credit losses:
□Applicable □Not applicable
1392024 Annual Report of Zhejiang NHU Co. Ltd.
（3） Provisions made collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Increase/Decrease
Opening
Categories Recovery/ Closing balance
balance Accrual Write-off Others
Reversal
Provision made
on a collective 146603098.58 53341366.04 199944464.62
basis
Total 146603098.58 53341366.04 199944464.62
Of which the amount of bad debt provision recovered or reversed during the period was significant: None
（4） Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the total balance Closing balance of provision for bad
Debtors Closing balance
of receivables (%) debts
Client A 540192458.89 14.02% 27009622.94
Client B 368239928.58 9.56% 22612940.67
Client C 76002931.63 1.97% 3800146.58
Client D 64069328.62 1.66% 3203466.43
Client E 52462604.98 1.36% 2623130.25
Total 1100967252.70 28.57% 59249306.87
5. Receivables financing
（1） Presentation of receivable financing classifications
Unit: RMB Yuan
Items Closing balance Opening balance
Bank acceptance 523913135.22 331634090.61
Total 523913135.22 331634090.61
（2） Pledged notes at the balance sheet date
Unit: RMB Yuan
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Provision for bad debts by portfolio 523913135.22 100.00% 523913135.22
Including:
Bank acceptance 523913135.22 100.00% 523913135.22
Total 523913135.22 100.00% 523913135.22
1402024 Annual Report of Zhejiang NHU Co. Ltd.
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion
Including:
Provision for bad debts by portfolio 331634090.61 100.00% 331634090.61
Including:
Bank acceptance 331634090.61 100.00% 331634090.61
Total 331634090.61 100.00% 331634090.61
Provision for bad debts by portfolio: 0
Unit: RMB Yuan
Closing balance
Categories
Book balance Provision for bad debts Provision proportion
Bank acceptance 523913135.22
Total 523913135.22
Provision for bad debts based on the general model of expected credit losses: none
（3） Pledged notes at the balance sheet date
Unit: RMB Yuan
Items Closing balance of pledged notes
Bank acceptance 36038583.82
Subtotal 36038583.82
（4） Receivable financing at the end of the period that has been endorsed or discounted by the Company
and is not yet due at the balance sheet date
Unit: RMB Yuan
Items Closing balance derecognized Closing balance not yet derecognized
Bank acceptance 1072215565.26
Total 1072215565.26
6. Other receivables
Unit: RMB Yuan
Items Closing balance Opening balance
Other receivables 225516143.49 142060705.67
Total 225516143.49 142060705.67
（1） Dividend receivable
1） Classification of dividends receivable
Unit: RMB Yuan
1412024 Annual Report of Zhejiang NHU Co. Ltd.
Items/Investees Closing balance Opening balance
Export tax refund 155510799.79 59999917.27
Security deposits 28016052.55 26223295.23
Refundable VAT 22474837.60 49708056.90
Employee petty cash 19683594.24 5892932.02
Temporary advance payment receivable 5105463.95
special injection 3698633.08
Others 4326094.50 2290423.97
Total 233710011.76 149220089.34
2） Ages analysis
Unit: RMB Yuan
Ages Closing book balance Opening book balance
Within 1 year (inclusive) 205033057.78 121257098.80
1-2 years 4490776.06 4774411.02
2-3 years 3096856.11 5220071.25
Over 3 years 21089321.81 17968508.27
3-4 years 5158410.73 1111491.23
4-5 years 910984.75 3390964.34
Over 5 years 15019926.33 13466052.70
Total 233710011.76 149220089.34
3） Disclosure by bad debt accrual method
□ Applicable □Not applicable
Unit: RMB Yuan
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount
proportion
Including:
Provision for bad
233710011.76100.00%8193868.273.51%225516143.49
debts by portfolio
Total 233710011.76 100.00% 8193868.27 3.51% 225516143.49
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount
proportion
Including:
Provision for bad 149220089.34 100.00% 7159383.67 4.80% 142060705.67
1422024 Annual Report of Zhejiang NHU Co. Ltd.
debts by portfolio
Total 149220089.34 100.00% 7159383.67 4.80% 142060705.67
rovision for bad debts by portfolio:8193868.27
Unit: RMB Yuan
Closing balance
Ages
Amount Carrying amount % to total
Export Refund Receivable
155510799.79
Portfolio
VAT refund receivable
22474837.60
portfolio
Land deposit receivable
17354493.50
portfolio
Customs and tax agency
255384.63
deposits receivable portfolio
special injection 3698633.08
Ages 34415863.16 8193868.27 23.81%
Within 1 year (inclusive) 23348787.31 1167439.35 5.00%
1-2 years 4290329.04 858065.81 20.00%
2-3 years 3041918.50 2433534.80 80.00%
Over 3 years 3734828.31 3734828.31 100.00%
Total 233710011.76 8193868.27
Provision for bad debts is made on the basis of a general model of expected credit losses:
Unit: RMB Yuan
Phase I Phase II Phase III
Provision for bad debts 12-month expected Lifetime expected credit Lifetime expected credit Total
credit losses losses (credit not impaired) losses (credit impaired)
Opening balance 603066.99 799098.71 5757217.97 7159383.67
Opening balance in the
current period
--Transferred to phase II -214516.45 214516.45
--Transferred to phase III -608383.70 608383.70
Provision made in the
778888.81452834.35-197238.561034484.60
current period
Closing balance 1167439.35 858065.81 6168363.11 8193868.27
Classification of stages and bad debt provisioning ratio
The basis of classification by stages: Accounts aged less than one year are classified as stage I accounts aged 1 to 2 years are
classified as stage II and accounts aged more than 2 years are classified as stage III.Changes in carrying amounts for which the amount of change in the provision for losses during the period is material.□Applicable □ Not applicable
1432024 Annual Report of Zhejiang NHU Co. Ltd.
4） Provisions made collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Opening Increase/Decrease
Categories Recovery/ Closing balance
balance Accrual Write-off Others
Reversal
Provision made
on a collective 7159383.67 1034484.60 8193868.27
basis
Total 7159383.67 1034484.60 8193868.27
Of which the amount of provision for bad debts reversed or recovered during the period was significant: None
5） Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the total
Nature of Provision for bad
Debtors Book balance Ages balance of other
receivables debts
receivables (%)
National Revenue Within 1 year
export tax
Service (export tax 155510799.79 (inclusive) 66.54%
rebate
refunds receivable)
Servicio de
Refundable
Administración 20203079.29 Over 3 years 8.64%
VAT
Tributaria
Weifang Municipal
Within 1 year
Bureau of Land and Security
17354493.50 (inclusive) 7.43%
Resource Binhai deposits
District Branch
Within 1 year
677313.00 (inclusive) 0.29% 33865.65
Hauptzollamt Security
Hannover deposits 677313.00 1-2 years 0.29% 135462.60
1049835.15 2-3 years 0.45% 839868.12
2374358.35 Over 3 years 1.02% 2374358.35
Within 1 year
CHURIN special
3698633.08 (inclusive) 1.58%
GAIKOKUHOJIMU injection
Total 201545825.16 86.24% 3383554.72
7. Advances paid
(1) Age analysis
Unit: RMB Yuan
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 162128120.14 99.33% 206538373.94 98.69%
1-2 years 627814.76 0.38% 2623068.38 1.25%
1442024 Annual Report of Zhejiang NHU Co. Ltd.
2-3 years 369577.18 0.23% 97159.73 0.05%
Over 3 years 91000.00 0.06% 16000.00 0.01%
Total 163216512.08 209274602.05
Explanation of the reasons for untimely settlement of prepayments aged more than one year and of significant amount: None
(2) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the total balance of
Debtors Book balance
advances paid (%)
Supplier A 20017701.69 12.26%
Supplier B 19703978.24 12.07%
Supplier C 14539902.94 8.91%
Supplier D 11591723.54 7.10%
Supplier E 7790000.00 4.77%
Subtotal 73643306.41 45.11%
8. Inventories
Is the company subject to disclosure requirements for the real estate industry
No
(1) Inventory classification
Unit: RMB Yuan
Closing balance Opening balance
Provision for Provision for
inventory write- inventory write-
Items down/ Provision down/ Provision
Book balance Carrying amount Book balance Carrying amount
for impairment for impairment
of cost to fulfill of cost to fulfill
a contract a contract
Raw materials 442728793.37 6460736.28 436268057.09 527624081.09 6293242.29 521330838.80
Work in
1121647464.746519042.731115128422.011178294229.776519042.731171775187.04
process
Goods on
2419984677.77140206380.432279778297.342417138791.32216472992.132200665799.19
hand
Goods
100921025.52100921025.52108180564.86108180564.86
dispatched
Development
54960480.2254960480.2298068949.5898068949.58
cost
Developed
122563022.12122563022.12
products
Materials on
consignment
4971296.824971296.825430259.535430259.53
for further
processing
Packages 18485345.27 18485345.27 17397177.94 17397177.94
1452024 Annual Report of Zhejiang NHU Co. Ltd.
Low-value
79583917.6979583917.6973467076.2873467076.28
consumables
Total 4243283001.40 153186159.44 4090096841.96 4548164152.49 229285277.15 4318878875.34
(2) Inventories – Development cost
Unit: RMB Yuan
Items Estimated total investment Opening balance Closing balance
Boao NHU Resort[note] 550 million 43108469.36
Weifang NHU Town Phase II 398.53 million 54960480.22 54960480.22
Subtotal 98068949.58 54960480.22
[Note] The Company's subsidiary v was transferred on June 21 2024 and its inventory-development cost was transferred out
accordingly.
(3) Inventories – Developed products
Unit: RMB Yuan
Items Date of Opening balance Increase Decrease Closing
completion balance
Boao NHU Resort Center 2014.12 122563022.12 122563022.12
Subtotal 122563022.12 122563022.12
[Note] The Company's subsidiary Qionghai Boao Lido Real Estate Co. Ltd. was transferred on June 21 2024 and its inventory-
development products were transferred out accordingly.
（4）Provision for inventory write-down and provision for impairment of cost to fulfill a contract
Unit: RMB Yuan
Increase Decrease
Opening
Items Recovery/ Closing balance
balance Accrual Others Others
Reversal
Raw materials 6293242.29 212292.03 44798.04 6460736.28
Work in
6519042.736519042.73
process
Goods on hand 216472992.13 48940452.74 125207064.44 140206380.43
Total 229285277.15 49152744.77 125251862.48 153186159.44
Specific basis for determining net realizable value reasons for reversal or write-off of provision for decline in value of inventories
in the period
Reasons for write-off of Reasons for reversal of provision
Determination basis of net realizable
Items provision for inventory write- for decline in value of
value
down inventories
Net realizable value is determined as
Increase in net realizable value
the estimated selling price of the Consumption of inventories for
of inventories for which
relevant finished goods less costs which provision for decline in
Raw materials provision for decline in value of
estimated to be incurred to value of inventories has been
inventories was made in prior
completion estimated selling made during the period
periods
expenses and related taxes.Net realizable value is determined as Increase in net realizable value Inventories for which provision
Work in process the estimated selling price of the of inventories for which for inventory write-downs was
relevant finished goods less costs provision for decline in value of made at the beginning of the
1462024 Annual Report of Zhejiang NHU Co. Ltd.
Reasons for write-off of Reasons for reversal of provision
Determination basis of net realizable
Items provision for inventory write- for decline in value of
value
down inventories
estimated to be incurred to inventories was made in prior period were depleted during the
completion estimated selling periods period.expenses and related taxes.Net realizable value is determined as Increase in net realizable value Inventories for which provision
the estimated selling price of the of inventories for which for decline in value of inventories
Goods on hand relevant finished goods less provision for decline in value of was made at the beginning of the
estimated selling expenses and inventories was made in prior period were sold during the
related taxes. periods period
Provision for decline in value of inventories by portfolio: None
9. Other current assets
Unit: RMB Yuan
Items Closing balance Opening balance
Prepaid VAT or input VAT to be credited 28566490.04 47538826.76
Prepaid enterprise income tax 5070275.22
Prepaid insurance premiums 4885881.13 4738519.69
Amortized service charges 2184667.56
Amortized rent costs 332593.36
Prepaid urban maintenance and construction tax 13194.85
Prepaid education surcharge 7916.74
Prepaid local education surcharge 5278.11
Amortized catalyst costs 10858733.66
Total 35969632.09 68232745.03
10. Other equity instrument investments
Unit: RMB Yuan
Profit Loss for Profit Losses
Reasons for
recognized the period accumulated in accumulated in Dividend
designation as at
in other charged to other other income
fair value through
Items Closing balance Opening balance comprehensi other comprehensive comprehensive recognized
other
ve income comprehen income at the income at the during the
comprehensive
for the sive end of the end of the period
income
period income period period
Zhejiang Second
7790147.557790147.55
Pharma Co. Ltd.Shanghai NewMargin
Yongjin Eqiuty 11708000.00 15208000.00
Enterprise (LP)
Total 19498147.55 22998147.55
Existence of derecognition during the period: None
Other notes: None
11. Long-term equity investments
Unit: RMB Yuan
1472024 Annual Report of Zhejiang NHU Co. Ltd.
Increase/Decrease
Closing
Closing Investment balance of
Investees Opening carrying carrying income/losses Changes Cash dividend/ Provision
Closing carrying
provision
amount Investments Investments Adjustment in other
amount recognized in other Profit declared for
Others amount
increased decreased comprehensive income for
under equity equity for distribution impairment impairment
method
I. Joint ventures
Ningbo ZRCC
NHU 216166978.49 155672000.00 -13194048.59 358644929.90
Biotechnology
Co. Ltd.Subtotal 216166978.49 155672000.00 -13194048.59 358644929.90
II. Associates
Zhejiang
Chunhui
Environmental 281395724.54 46816896.41 25920000.00 129785.45 302422406.40
Protection
Energy Co.Ltd.Envalior NHU
Engineering
Materials 27298340.00 10604288.00 -1331715.21 36570912.79
(Zhejiang)
Co.Ltd.Zhejiang
sanbo polymer
Co. Ltd
Zhejiang
Saiya
Chemical 131603201.04 12923009.90 14700000.00 -22536.72 129803674.22
Materials Co.Ltd.CysBio ApS 31028778.21 -2681188.72 437952.46 28785541.95
Shandong
Bin’an
Vocational 5057575.53 -1034954.00 4022621.53
Training
School Co.Ltd. [Note]
Anhui
Innovation
4594602.27417459.305012061.57
Technology
Co. Ltd
Subtotal 480978221.59 67045510.89 40620000.00 -786514.02 506617218.46
Total 697145200.08 155672000.00 53851462.30 40620000.00 -786514.02 865262148.36
[Note] Zhejiang Sanbo Polymer Co. Ltd. was cancelled on November 6 2024
Recoverable amount determined as fair value less costs of disposal net
□Applicable □ Not applicable
Recoverable amount is determined as the present value of the expected future cash flows
□Applicable □ Not applicable
12. Fixed assets
Unit: RMB Yuan
Items Closing balance Opening balance
Fixed assets 21915984823.43 21860082637.13
Total
Fixed assets 21915984823.43 21860082637.13
(1) Details
Unit: RMB Yuan
Items Buildings and Generali Special equipment Transport facilities Total
structures equipment
I. Cost:
1482024 Annual Report of Zhejiang NHU Co. Ltd.
Items Buildings and Generali Special equipment Transport facilities Total
structures equipment
1. Opening balance 8220153443.34 246508090.08 21354530121.42 31963168.08 29853154822.92
2. Increase 257448661.36 20647437.30 2026657384.89 3183280.88 2307936764.43
(1) Acquisition 34247738.00 7745115.08 383128006.36 3183280.88 428304140.32
(2) Transferred in
from construction in 223200923.36 12902322.22 1643529378.53 1879632624.11
progress
3. Decrease 23535163.85 2525703.73 101823038.58 6684199.85 134568106.01
(1) Disposal/
23535163.852272889.73101823038.585911657.85133542750.01
Scrapping
(2) Disposal of
252814.00772542.001025356.00
subsidiaries
4. Closing balance 8454066940.85 264629823.65 23279364467.73 28462249.11 32026523481.34
II. Accumulated
depreciation
1. Opening balance 1071234328.09 156415458.02 6719751917.92 16912727.74 7964314431.77
2. Increase 243001912.57 29943894.75 1877597535.26 3759432.21 2154302774.79
(1) Accrual 243001912.57 29943894.75 1877597535.26 3759432.21 2154302774.79
3. Decrease 6656514.80 2132990.00 54771803.61 6001261.51 69562569.92
(1) Disposal/
6656514.801903503.1954771803.615271768.6468603590.24
Scrapping
(2) Business
combinations or 229486.81 729492.87 958979.68
reductions
4. Closing balance 1307579725.86 184226362.77 8542577649.57 14670898.44 10049054636.64
III. Provision for
impairment
1. Opening balance 20980481.81 7112.74 7770159.47 28757754.02
2. Increase 32805182.59 32805182.59
(1) Accrual 32805182.59 32805182.59
3. Decrease 5046.00 73869.34 78915.34
(1) Disposal/
5046.0073869.3478915.34
Scrapping
4. Closing balance 20975435.81 7112.74 40501472.72 61484021.27
IV. Carrying amount
1. Closing balance 7125511779.18 80396348.14 14696285345.44 13791350.67 21915984823.43
2. Opening balance 7127938633.44 90085519.32 14627008044.03 15050440.34 21860082637.13
(2) Fixed assets temporarily idle
Unit: RMB Yuan
Accumulated Provision for
Items Cost Carrying amount Remarks
depreciation impairment
Buildings and
168714514.3451664057.7420975435.8196075020.79
structures
General equipment 66417.27 45724.46 2420.51 18272.30
Special equipment 516230479.09 407284453.72 39273709.19 69672316.18
1492024 Annual Report of Zhejiang NHU Co. Ltd.
Subtotal 685011410.70 458994235.92 60251565.51 165765609.27
(3) Fixed assets leased out under operating leases
Unit: RMB Yuan
Items Closing carrying amount
Buildings and structures 36635906.25
Subtotal 36635906.25
(4) Fixed assets with certificate of titles being unsettled
Unit: RMB Yuan
Items Carrying amount Reasons for unsettlement
Relevant procedures have not yet been
Buildings and structures 962742816.20
completed.Subtotal 962742816.20
(5) Impairment testing of fixed assets
□Applicable □ Not applicable
The recoverable amount is determined as the net of fair value less costs of disposal
□Applicable □ Not applicable
Recoverable amount is determined as the present value of the expected future cash flows
□Applicable □ Not applicable
Unit: RMB Yuan
Basis for
Years of Key parameters determining
recoverable Amount of the of the key parameters
Items carrying amount Key parameters for the forecast period
amount impairment projection stabilization for the
period period stabilization
period
* Forecast life: the economic life of the core
equipment in the asset group.* Revenue forecast data: on the basis of
Part of the
historical operating statistics actual operating
assets of
conditions and the commissioned asset group
520
business development plan taking into
Workshop
account the market development trend by
of
29694867.18 0.00 29694867.18 9 predicting the future sales of each product not applicable not applicable
Zhejiang
and sales unit price of its future revenue.NHU
* Cost forecast data: raw material
Pharmace
procurement costs are determined by
utical Co.comprehensive analysis with reference to the
Ltd
calendar level and industry quotation data;
labor costs are calculated after considering
the number of workshop personnel to be
1502024 Annual Report of Zhejiang NHU Co. Ltd.
increased with the expansion of the
company's scale and the increase in per capita
wage level; other cost data are mainly
forecasted by using the proportional
forecasting method.* Cost forecast data: The proportion forecast
method is mainly used for forecasting.Total 29694867.18 0.00 29694867.18
13. Construction in progress
Unit: RMB Yuan
Items Closing balance Opening balance
Construction in progress 571610643.68 1621882507.56
Total 571610643.68 1621882507.56
1512024 Annual Report of Zhejiang NHU Co. Ltd.
(1) Details
Unit: RMB Yuan
Closing balance Opening balance
Items Book balance Provision for Carrying Book balance Provision for Carrying amount
impairment amount impairment
Shandong Industrial Park
601552381.89601552381.89
HA Project
Daming Life and Health
180316245.04180316245.04
Industry Project
Workshop 617 West
40846076.5040846076.50
Project
Series Aldehyde Switching
Production Project of 1500 68706885.55 68706885.55 41051446.96 41051446.96
tons in Workshop 615
Project A4 232798676.59 232798676.59
Annual production
capacity of 300 tons of
ketone technology reform 30141232.47 30141232.47
and production expansion
project
Process and legitimacy
project with annual
production capacity of 0.02 49623769.12 49623769.12 29410485.13 29410485.13
million of glufosinate
ammonium chloride
311 Workshop Phase II VA
21645004.5321645004.53
Expansion Project
Public Multifunctional
Productive Services
37345453.8937345453.89
Integrated Platform
Construction Project
Project with an annual
production capacity of 43287282.66 43287282.66
30 tons of Apolyester
Multi-functional
production workshop 65875103.23 65875103.23
construction project
New Material Industry
24534038.0924534038.09
Chain Project
1500 tons/year aniseed
55770423.7755770423.77
brain project
Citral New Process
37142112.6837142112.68
Expansion Project
Annual output of 1000
tons of calcium
33944620.1633944620.16
hydroxymethionine
project
Workshop 520 asset
24035797.8624035797.86
revitalization project
2024 Menthol
Expansion Technical 16854381.08 16854381.08
Reform Project
Other piecemeal
260998615.37260998615.37297613118.67297613118.67
projects
Total 571610643.68 571610643.68 1621882507.56 1621882507.56
1522024 Annual Report of Zhejiang NHU Co. Ltd.
(2) Changes in significant projects
Unit: RMB Yuan
Including:
Budgets Accumulated Amount of
Completion Annual
Projects RMB 0000 Opening balance Increase Transferred to Accumulated input amount of borrowing cost Fund Other decrease Closing balance percentage capitalization
fixed assets to budget（%） borrowing cost capitalization source
Yuan （%） rate capitalization in current
period
Series
Aldehyde
Switching
Production 11687.27 41051446.96 27655438.59 68706885.55 58.79 85.00 Others
Project of 1500
tons in
Workshop 615
Project A4 40067.95 232798676.59 112118115.37 344916791.96 86.08 100.00 Others
Shandong
Industrial Park 97991.14 601552381.89 76209824.59 677762206.48 69.58 100.00 3392133.35 3392133.35 2.60 Others
HA Project
Daming Life
and Health 76203.56 180316245.04 23503863.12 203820108.16 82.25 100.00 4857357.99 463324.72 3.94 Others
Industry
Project
New Material
Industry Chain 403624.00 24534038.09 24534038.09 0.61 0.00 Others
Project
1500 tons/year
aniseed brain 7966.00 55770423.77 55770423.77 70.01 90.00 208866.88 208866.88 2.36 Others
project
Total 637539.92 1055718750.48 319791703.53 1226499106.60 149011347.41 8458358.22 4064324.95 --
（3） Impairment testing of construction in progress
□Applicable □Not applicable
14. Right-of-use assets
(1) Details
Unit: RMB Yuan
Items Buildings and structures Total
I. Cost
1.Opening balance 8430844.79 8430844.79
2. Increase 8502528.92 8502528.92
(1) Leased in 8502528.92 8502528.92
3. Decrease 320953.83 320953.83
(1) Disposal 320953.83 320953.83
4.Closing balance 16612419.88 16612419.88
II. Accumulated depreciation
1. Opening balance 1827213.23 1827213.23
2. Increase 1683308.27 1683308.27
(1) Accrual 1683308.27 1683308.27
3. Decrease 120970.71 120970.71
(1) Disposal 120970.71 120970.71
4.Closing balance 3389550.79 3389550.79
III. Carrying amount
1. Closing balance 13222869.09 13222869.09
2. Opening balance 6603631.56 6603631.56
1532024 Annual Report of Zhejiang NHU Co. Ltd.
(2) Impairment testing of right-of-use assets
□Applicable □Not applicable
15. Intangible assets
(1) Details
Unit: RMB Yuan
Non-patented
Items Land use right Patent right Software Total
technology
I. Cost
1. Opening
2539212600.2237310535.2565368458.2569814952.592711706546.31
balance
2. Increase 96685543.80 258006.37 25212483.96 20459354.89 142615389.02
(1) Acquisition 96685543.80 258006.37 25212483.96 1064697.56 123220731.69
(2) Transfer from
construction in 19394657.33 19394657.33
progress
3. Decrease 104632.58 104632.58
(1) Disposal 104632.58 104632.58
4.Closing balance 2635898144.02 37568541.62 90580942.21 90169674.90 2854217302.75
II. Accumulated
amortization
1. Opening
265286407.608156816.646299039.1624403529.09304145792.49
balance
2. Increase 50572434.25 2980837.44 7031611.74 6691277.76 67276161.19
(1) Accrual 50572434.25 2980837.44 7031611.74 6691277.76 67276161.19
3. Decrease 104617.12 104617.12
(1) Disposal 104617.12 104617.12
4.Closing balance 315858841.85 11137654.08 13330650.90 30990189.73 371317336.56
III. Carrying
amount
1. Closing
2320039302.1726430887.5477250291.3159179485.172482899966.19
balance
2. Opening
2273926192.6229153718.6159069419.0945411423.502407560753.82
balance
Intangible assets formed through in-house research and development accounted for 0.78% of the balance of intangible assets at the
end of the period.
(2) Impairment testing of intangible assets
□Applicable □Not applicable
1542024 Annual Report of Zhejiang NHU Co. Ltd.
16. Goodwill
(1) Original carrying amount of goodwill
Unit: RMB Yuan
Investees or Increase Decrease Closing balance
Opening
events resulting
balance Business Translation Translation
in goodwill Disposal combination reserve reserve
Bardoterminal
2259627.83-95885.832163742.00
GmbH
NHU/Chr.Olesen Latin 3622704.97 3622704.97
America A/S
Total 5882332.80 -95885.83 5786446.97
(2) Provision for impairment
Unit: RMB Yuan
Investees or Increase Decrease
Opening
events resulting
balance Translation Translation
Closing balance
in goodwill Accrual Disposal reserve reserve
Bardoterminal
2259627.83-95885.832163742.00
GmbH
Total 2259627.83 -95885.83 2163742.00
(3) Information about the asset group or combination of asset groups in which goodwill is located
Composition and basis of the
name (of an organization) asset group or portfolio to Operating segments and basis Consistency with prior years
which it belongs
Offshore self-accounting
warehousing and logistics
companies which Independent warehousing and
Bardoterminal GmbH Yes
management recognizes as an logistics company
asset group in its entirety
from the point of acquisition
Foreign self-accounting sales
entities which management
NHU/Chr. Olesen Latin
recognizes in their entirety as Independent sales agents Yes
America A/S
an asset group from the point
of acquisition
Changes in asset groups or combinations of asset groups: none
(4) Specific determination of recoverable amount
The recoverable amount is determined as the net fair value less costs of disposal
□Applicable □Not applicable
Recoverable amount is determined as the present value of estimated future cash flows
□Applicable □Not applicable
1552024 Annual Report of Zhejiang NHU Co. Ltd.
17. Long-term prepayments
Unit: RMB Yuan
Items Opening balance Increase Amortization Other decrease Closing balance
Decoration fees 6343215.51 2733040.39 3989529.43 5086726.47
Catalysts 5354746.21 28807140.47 6189032.26 27972854.42
Total 11697961.72 31540180.86 10178561.69 33059580.89
18. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offset
Unit: RMB Yuan
Closing balance Opening balance
Items
Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
difference difference
Provision for
82764678.6513331701.9871881471.4811135696.68
impairment of assets
Unrealized profit from
106224182.3115933627.3271231525.3910684728.85
internal transactions
Deferred income 182140134.06 27321020.11 193224271.51 28983640.72
Difference in
depreciation of fixed 287023.76 43053.56
assets
Lease liabilities 2715619.54 407342.93 2822404.05 423360.61
Total 373844614.56 56993692.34 339446696.19 51270480.42
(2) Deferred tax liabilities before offset
Unit: RMB Yuan
Closing balance Opening balance
Items Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
difference difference
Difference due to one-
off pre-tax deduction 1544604208.17 241027455.22 1575781538.31 247043712.25
of fixed assets
Profit before tax of
NHU (Hong Kong) 598372110.33 89755816.55 164156999.23 24623549.88
Trading Co. Ltd.usufructuary assets 10916744.74 1637511.71 2630791.48 394618.72
Changes in fair value
of trading financial
745816.34186454.09934443.21233610.80
instruments derivative
financial instruments
Total 2154638879.58 332607237.57 1743503772.23 272295491.65
1562024 Annual Report of Zhejiang NHU Co. Ltd.
(3) Deferred tax assets or liabilities after offset
Unit: RMB Yuan
Closing balance of Opening balance of
Closing balance of Opening balance of
deferred tax assets deferred tax assets
Items deferred tax assets/ deferred tax assets/
offset by deferred tax offset by deferred tax
liabilities after offset liabilities after offset
liabilities liabilities
Deferred tax assets 54887646.03 2106046.31 50620401.24 650079.18
Deferred tax liabilities 54887646.03 277719591.54 50620401.24 221675090.41
(4) Details of unrecognized deferred tax assets
Unit: RMB Yuan
Items Closing balance Opening balance
Deductible temporary difference 904662832.02 436744796.84
Deductible losses 3375918624.25 3044096175.08
Total 4280581456.27 3480840971.92
(5) Maturity years of deductible losses of unrecognized deferred tax assets
Unit: RMB Yuan
Maturity years Closing balance Opening balance Remarks
Year 2025 23414489.87
Year 2026 36440047.05
Year 2027 165841662.42 4380243.82
Year 2028 97699902.16 34126279.57
Year 2029 169350596.82 68271533.21
Year 2030 198032265.79 232539024.92
Year 2031 240693205.88 284461823.88
Year 2032 898257207.22 1081974270.06
Year 2033 781328690.97 1338342999.62
Year 2034 764860556.07
Total 3375918624.25 3044096175.08
19. Other non-current assets
Unit: RMB Yuan
Closing balance Opening balance
Items Book balance Provision for Carrying Book balance Provision for Carrying
impairment amount impairment amount
Pollution
emission trading 12404429.26 12404429.26 15360572.70 15360572.70
fees
Payments for
72113200.0072113200.0078962800.0078962800.00
coal quota
Prepayments for
75146826.1475146826.1443789431.1943789431.19
long-term assets
Total 159664455.40 159664455.40 138112803.89 138112803.89
1572024 Annual Report of Zhejiang NHU Co. Ltd.
1582024 Annual Report of Zhejiang NHU Co. Ltd.
20. Restrictions on assets as of the end of the reporting period
Unit: RMB Yuan
Closing balance Opening balance
Type
Items Type of Book Carrying of Book Carrying
Restrictions restrictio Restrictions
balance amount restric balance amount
n
tion
Cash and Banker's Banker's
bank 56029764.82 56029764.82 pledges acceptance 96790731.68 96790731.68 pledges acceptance
balances deposit deposit
Opening a Opening a
Notes pledge of pledge of
99511561.32 99511561.32 pledges 94097743.14 94097743.14 pledges
receivable banker's banker's
acceptances acceptances
Mortgage to
Mortgage to a
a bank for
collater bank for the
Fixed assets 93273121.97 75137838.29 97257595.52 81371634.23 collateral the purpose
al purpose of
of obtaining
obtaining a loan
a loan
Mortgage to
Mortgage to a
a bank for
Intangible collater bank for the
9864599.74 9864599.74 10301747.64 10301747.64 collateral the purpose
assets al purpose of
of obtaining
obtaining a loan
a loan
Opening a Opening a
Receivables pledge of pledge of
36038583.82 36038583.82 pledges 143872489.15 143872489.15 pledges
financing banker's banker's
acceptances acceptances
Total 294717631.67 276582347.99 442320307.13 426434345.84
21. Short-term borrowings
(1) Details on categories
Unit: RMB Yuan
Items Closing balance Opening balance
Guaranteed borrowings 16626789.02 12686706.84
Credit borrowings 1145885450.02 1223001356.06
Total 1162512239.04 1235688062.90
22. Held-for-trading financial liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Held-for-trading financial liabilities 11151258.46
Including:
Derivative financial liabilities 11151258.46
Total 11151258.46
1592024 Annual Report of Zhejiang NHU Co. Ltd.
23. Notes payable
Unit: RMB Yuan
Categories Closing balance Opening balance
Bank acceptance 159164822.28 349347472.36
Total 159164822.28 349347472.36
The total amount of notes payable due and unpaid at the end of the period was $0.00.
24. Accounts payable
(1) Details
Unit: RMB Yuan
Items Closing balance Opening balance
Materials and labor costs 785807160.73 692476954.09
Payments for engineering and equipment 900171996.82 1238481643.96
Total 1685979157.55 1930958598.05
25. Other payables
Unit: RMB Yuan
Items Closing balance Opening balance
Other payables 122424090.50 53671773.90
Total 122424090.50 53671773.90
（1） Other payables
1) Categorized by nature
Unit: RMB Yuan
Items Closing balance Opening balance
Security deposits 19802441.12 22235033.12
Unpaid expenses payable 83120582.74 12568235.33
Temporary receipts payable 9926159.87 13765955.47
Earnest money for housing purchase
600000.00
(Boao NHU Resort Center)
Others 9574906.77 4502549.98
Total 122424090.50 53671773.90
26. Contract liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Payments for goods received in advance 237013669.77 251008240.97
Total 237013669.77 251008240.97
1602024 Annual Report of Zhejiang NHU Co. Ltd.
27. Employee benefits payable
(1) Details
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
I. Short-term employee
418273203.881987025183.611932191276.04473107111.45
benefits
II. Post-employment
benefits – defined 133416978.14 133416978.14
contribution plan
Total 418273203.88 2120442161.75 2065608254.18 473107111.45
(2) Details of short-term employee benefits
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
1. Wage bonus allowance and
393259909.401750924263.981692104992.98452079180.40
subsidy
2. Employee welfare fund 89648012.63 89648012.63
3. Social insurance premium 66492847.57 66492847.57
Including: Medicare premium 57980675.63 57980675.63
Occupational injuries
8251124.988251124.98
premium
Maternity premium 261046.96 261046.96
4. Housing provident fund 63059559.36 63059559.36
5. Trade union fund and employee
25013294.4816900500.0720885863.5021027931.05
education fund
Total 418273203.88 1987025183.61 1932191276.04 473107111.45
(3) Details of defined contribution plan
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
1. Basic endowment
129003603.50129003603.50
insurance premium
2. Unemployment
4413374.644413374.64
insurance premium
Total 133416978.14 133416978.14
28. Taxes and rates payable
Unit: RMB Yuan
Items Closing balance Opening balance
VAT 82104457.53 25412719.25
Enterprise income tax 383826117.39 205149607.58
Individual income tax withheld for tax
12121593.6312600229.27
authorities
Urban maintenance and construction tax 10830229.90 2768413.70
1612024 Annual Report of Zhejiang NHU Co. Ltd.
Items Closing balance Opening balance
Land appreciation tax 21150454.52 19557360.54
Housing property tax 20979824.95 18825864.81
Land use tax 15427321.94
Education surcharge (local education
7891237.382052563.31
surcharge)
Total 538903915.30 301794080.40
29. Non-current liabilities due within one year
Unit: RMB Yuan
Items Closing balance Opening balance
Long-term borrowings due within one
2463866907.631562730340.48
year
Lease liabilities due within one year 1512006.31 1662118.19
Total 2465378913.94 1564392458.67
30. Other current liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Output VAT to be recognized 25698183.73 17260124.76
Withholding Rebate 27866151.17
Total 53564334.90 17260124.76
31. Long-term borrowings
(1) Categories
Unit: RMB Yuan
Items Closing balance Opening balance
Mortgaged borrowings 18036415.25 26217293.08
Guaranteed borrowings 748822433.32
Credit borrowings 5309207306.00 6046603468.18
Total 5327243721.25 6821643194.58
32. Lease liabilities
Unit: RMB Yuan
Items Closing balance Opening balance
Unpaid lease payments 4602267.00 6464449.62
Less: Unrealized financing expenses 1017475.98 1224313.19
Total 3584791.02 5240136.43
1622024 Annual Report of Zhejiang NHU Co. Ltd.
33. Deferred income
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance Reasons for balance
The Company received
government grants
related to assets which
Government grants 1065586274.49 103294003.66 143045687.11 1025834591.04
were amortized based on
the depreciation progress
of corresponding assets.Total 1065586274.49 103294003.66 143045687.11 1025834591.04 --
34. Share capital
Unit: RMB Yuan
Movements
Items Opening balance Issue of Bonu Reserve Closing balance
new s transferred Others Subtotal
shares shares to shares
Total
3090907356.00-17485676.00-17485676.003073421680.00
shares
Other remarks：
The company held the 9th meeting of the 9th Board of Directors on November 18 2024 and the 2024 Second Extraordinary General
Meeting on December 4 2024 during which the Proposal on Changing the Purpose of Repurchased Shares and Canceling Them was
reviewed and approved. It was agreed to modify the purpose of the share repurchase plan approved on August 18 2021 changing it
from the original plan of "repurchasing shares for implementing equity incentive plans or employee stock ownership plans" to
"canceling them and reducing the registered capital." Specifically 17485676 shares in the company's special securities account for
repurchases would be canceled and the registered capital would be reduced by 17485676 yuan accordingly.During this period the company reduced treasury stock by 500059711.25 yuan simultaneously decreasing the registered capital by
17485676.00 yuan and reducing capital surplus (share premium) by 482574035.25 yuan.
35. Capital reserve
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Share/capital premium 3334992617.92 1606336.41 482574035.25 2854024919.08
Other capital reserve 278352867.21 142182.13 278495049.34
Total 3613345485.13 1748518.54 482574035.25 3132519968.42
Other Notes Including Changes During the Reporting Period and Reasons for the Changes:
(1) The decrease in capital surplus (share premium) during this period is detailed in Section VII.34 of the financial report.
(2) The capital surplus (share premium) increased by 1606336.41 yuan during the reporting period attributable to additional capital
contributions by the minority shareholders of subsidiaries NHU Performance Materials GmbH resulting in changes to the company's
share of net assets.Additionally other capital reserves increased by 129785.45 yuan due to an increase in special reserves by the
company's equity-method investee Zhejiang Chunhui Environmental Energy Co. Ltd. leading to a corresponding adjustment in the
company's share of net assets.Furthermore 12396.68 yuan was derecognized from capital reserves during the reporting period as a
result of the company's disposal of its subsidiary Qionghai Bo'ao Lidu Real Estate Co. Ltd.
1632024 Annual Report of Zhejiang NHU Co. Ltd.
36. Treasury shares
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Treasury shares 500059711.25 500059711.25
Total 500059711.25 500059711.25
Other Notes Including Changes and Reasons for the Changes During the Reporting Period:The decrease in treasury stock during this
period is detailed in Section VII.34 of the financial report.
37 Other comprehensive income (OCI)
Unit: RMB Yuan
Current period cumulative
Less: OCI Less: OCI
previously previously
Items Opening balance Current period Less: Attributable to non- Closing
recognized but recognized but Attributable to parent
cumulative before Income controlling balance
transferred to profit transferred to company
income tax tax shareholders
or loss in current retained earnings in
period current period
Items not to be
reclassified 103920732.85 -21417073.44 -12407389.35 -9009684.09 91513343.50
subsequently to profit or
loss
Including: Other
comprehensive income
to be transferred to 506954.43 506954.43
profit or loss under
equity method
Translation reserves 103413778.42 -21417073.44 -12407389.35 -9009684.09 91006389.07
Total 103920732.85 -21417073.44 -12407389.35 -9009684.09 91513343.50
38. Special reserve
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Work safety fund 60860818.76 83884085.07 38396038.92 106348864.91
Total 60860818.76 83884085.07 38396038.92 106348864.91
Other remarks including remarks on current movements and reasons for movements:
According to the “enterprise safety production costs and the use of management practices” the production and storage of dangerous
goods enterprises based on the actual business income of the previous year the adoption of the regressive approach to the average
monthly withdrawal in accordance with the following standards: 1) operating income of up to 10 million yuan in accordance with
4.5%; 2) operating income of more than 10 million yuan to 100 million yuan in accordance with 2.25% extraction; 3) operating
income of more 100 million to 1 billion yuan in accordance with 0.55% extraction; 4) 0.2% for the part of business income exceeding
RMB 1 billion.According to the “ Electricity production and supply enterprises” the production and storage of dangerous goods enterprises based on
the actual business income of the previous year the adoption of the regressive approach to the average monthly withdrawal in
accordance with the following standards: 1) operating income of up to 10 million yuan in accordance with 3%; 2) operating income
of more than 10 million yuan to 100 million yuan in accordance with 1.5% extraction; 3) 0.8% for the part of business income
exceeding 100 million to 1 billion; 4) 0.6% for the part of business income exceeding RMB 1 billion.
1642024 Annual Report of Zhejiang NHU Co. Ltd.
39. Surplus reserve
Unit: RMB Yuan
Items Opening balance Increase Decrease Closing balance
Statutory surplus
1545453678.001545453678.00
reserve
Total 1545453678.00 1545453678.00
Other remarks including remarks on current movements and reasons for movements:
In accordance with the Company Law of the People's Republic of China and the Company's Articles of Incorporation the Company is
required to set aside 10% of the net profit of the parent company as legal reserve which may be discontinued when the accumulated
legal reserve reaches 50% of the registered capital.
40. Undistributed profit
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Unallocated earnings at the end of the
16890233961.5015823744811.91
previous period before adjustment
Adjustments to total unappropriated
earnings at the beginning of the period
(increase + decrease -)
Adjustment to unappropriated earnings at
16890233961.5015823744811.91
the beginning of the period
Add: Net profit attributable to owners of
5868545988.622704238767.54
the parent company
Less: Appropriation of statutory surplus
101038777.95
reserve
Dividend payable on ordinary
1383039756.001536710840.00
shares
Closing balance 21375740194.12 16890233961.50
Adjustments to the opening balance of retained earnings: None
41. Operating revenue/Operating cost
Unit: RMB Yuan
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 21477281729.13 12519749560.87 14959309948.92 10035023830.93
Other operations 132310499.32 62251085.78 157227054.38 96466544.52
Total 21609592228.45 12582000646.65 15116537003.30 10131490375.45
Including: Revenue
from contracts with 21603602684.29 12581115525.59 15113068097.55 10130630010.13
customers
Whether the lower of audited net profit before deducting non-recurring profit or loss and that after deducting non-recurring profit or
loss is negative
□ Yes √ No
1652024 Annual Report of Zhejiang NHU Co. Ltd.
Details of revenue:
Unit: RMB Yuan
Categories of contracts Revenue Cost
By product
Including:
Nutrition 15054507596.05 8554219175.76
Flavor and fragrance 3916222222.32 1886180859.36
New materials 1676206286.32 1309345637.91
Others 956666579.60 831369852.56
Subtotal 21603602684.29 12581115525.59
By operating region
Including:
Domestic 9550379792.87 6113325335.66
Overseas 12053222891.42 6467790189.93
Subtotal 21603602684.29 12581115525.59
By revenue recognition time
Including:
Goods (transferred at a point in time) 21603602684.29 12581115525.59
Subtotal 21603602684.29 12581115525.59
By sales channel
Including:
Direct sales 16472457321.31 9593760099.92
Agent sales 5131145362.98 2987355425.67
Subtotal 21603602684.29 12581115525.59
Information on Transaction Prices Allocated to Remaining Performance Obligations:
As of December 31 2024 revenue corresponding to performance obligations for which the Company has entered into contracts but
not yet performed or fulfilled amounted to 3488.24 million yuan of which 3488.24 million yuan is expected to be recognized as
revenue in 2025.
42. Taxes and surcharges
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Urban maintenance and construction tax 76045794.92 36193464.64
Education surcharge (local education
57219416.9628181033.35
surcharge)
Housing property tax 50835205.44 46262946.80
Land use tax 51508833.39 42541470.88
Vehicle and vessel use tax 55046.69 59709.62
Stamp duty 12705079.71 11682808.90
Environmental protection tax 2277631.64 1808553.59
Land appreciation tax 98666.67
Total 250745675.42 166729987.78
1662024 Annual Report of Zhejiang NHU Co. Ltd.
43. Administrative expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Employee benefits 304833632.86 289396666.51
Depreciation amortization of intangible
118011455.24112070187.88
assets
Office expenses business traveling
63956466.6759651384.82
expenses
Business entertainment expenses 22671117.76 21812291.14
Consulting fees 18007434.45 16308436.60
Insurance premiums 16466676.52 15294561.41
Disability Employment Guarantee Fund 15587637.01 15189147.67
Others 36360120.75 21349615.96
Total 595894541.26 551072291.99
44. Selling expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Employee benefits 96764617.15 78293653.26
Office expenses business traveling 35533327.84
32438096.50
expenses
Sales commission and customs 33006654.41
26768204.05
declaration charges
Advertising and promotion expenses 14466757.92
10599777.15
business entertainment expenses
Others 10526920.92 10217082.90
Total 190298278.24 158316813.86
45. R&D expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Employee benefits 457801674.45 400415932.53
Direct input 414653178.46 321079990.14
Depreciation amortization of intangible
82056953.9280744547.58
assets
Office expenses business traveling
45365827.2555869894.26
expenses
Outsourcing expenses 14657098.53 14660221.42
Others 21627007.89 15030889.09
Total 1036161740.50 887801475.02
1672024 Annual Report of Zhejiang NHU Co. Ltd.
46. Financial expenses
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Interest expenses 282180513.56 319906196.30
Interest income -126041480.98 -133145750.15
Losses on foreign exchange (or less:
13241698.29-128139758.40
gains)
Others 8667110.78 6829825.20
Total 178047841.65 65450512.95
47. Other income
Unit: RMB Yuan
Sources of Other Income/Gains Current period cumulative Preceding period comparative
Government grants related to assets 138798244.94 123715135.70
Government grants related to income 62323920.04 64789047.78
Value-added tax credits 65698515.38 12067795.91
Refund of handling fees for withholding
1236338.311516543.14
individual income tax
Total 268057018.67 202088522.53
48 . Gains on changes in fair value
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Held-for-trading financial assets 17475998.10 44460570.82
Including: Gains on changes in fair value
arising from financial assets classified as 17475998.10 44460570.82
at fair value through profit or loss
Held-for-trading financial liabilities -31076479.29 -14528085.84
Including: Gains on changes in fair value
arising from financial liabilities
-31076479.29-14528085.84
classified as at fair value through profit
or loss
Total -13600481.19 29932484.98
49. Investment income
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Investment income from long-term
53851462.3044130854.54
equity investments under equity method
Investment Income from Disposal of
47569632.62
Long-term Equity Investments
Investment income from disposal of
-23323516.774526003.79
financial instruments
1682024 Annual Report of Zhejiang NHU Co. Ltd.
Items Current period cumulative Preceding period comparative
Dividend income earned on investments
in other equity instruments during the 24473000.00
holding period
Gain on debt restructuring -847442.05
Interest on discounted bills -1631336.27 -2409421.07
Investment income from bank financial
808128.7212715401.91
products and structured deposits
Interest income from split loans 465887.82
Total 77274370.60 83054284.94
50. Credit impairment loss
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Bad debts -55009881.32 3551588.16
Total -55009881.32 3551588.16
51. Assets impairment loss
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
I. Inventory Write-down Losses and
Impairment Losses on Contract -49152744.77 -230600448.22
Fulfillment Costs
II. Impairment Losses on Fixed Assets -32805182.59
Total -81957927.36 -230600448.22
52. Gains on asset disposal
Unit: RMB Yuan
Sources Current period cumulative Preceding period comparative
Gains on disposal of non-current assets 1393189.08 16404163.69
Total 1393189.08 16404163.69
53. Non-operating revenue
Unit: RMB Yuan
Preceding period Amount included in non-
Items Current period cumulative
comparative recurring profit or loss
Indemnity income 3980828.25 6995674.96 3980828.25
Gains on damage or
retirement of non-current 1291804.52 433987.27 1291804.52
assets
Gains on Disposal or
Retirement of Non-Current 4000.00 4000.00
Assets
Others 195779.06 501473.33 195779.06
Total 5472411.83 7931135.56 5472411.83
1692024 Annual Report of Zhejiang NHU Co. Ltd.
54. Non-operating expenditures
Unit: RMB Yuan
Amount included in non-
Items Current period cumulative Preceding period comparative
recurring profit or loss
Donation expenditures 2561503.79 1709683.40 2561503.79
Losses on damage or
retirement of non-current 29676950.00 10977630.48 29676950.00
assets
Others 2252564.26 1815424.73 2252564.26
Total 34491018.05 14502738.61 34491018.05
55. Income tax expenses
(1) Details
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Current period income tax expenses 992122445.40 534585273.11
Deferred income tax expenses 54588534.00 -6459636.06
Total 1046710979.40 528125637.05
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB Yuan
Items Current period cumulative
Profit before tax 6943581186.99
Income tax expenses based on statutory/applicable tax rate 1041537178.05
Effect of different tax rate applicable to subsidiaries 208444891.18
Effect of prior income tax reconciliation -3708706.20
Effect of non-taxable income 454434.33
Effect of non-deductible costs expenses and losses 6894550.79
Effect of utilization of deductible losses not previously
-59761517.18
recognized as deferred tax assets
Effect of deducible temporary differences or deductible losses
9223692.51
not recognized as deferred tax assets in the current period
Effect of extra deduction of R&D expenses -156153370.45
Additional deduction for wages paid for the placement of
-220173.63
disabled persons and other employment encouraged by the state
Income tax expenses 1046710979.40
56. Other comprehensive income
Please refer to item VII 37 of this section for details.
57. Notes to items of the cash flow statement
(1) Cash related to operating activities
Other cash receipts related to operating activities
1702024 Annual Report of Zhejiang NHU Co. Ltd.
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Interest income from cash in bank 117019106.62 133145750.15
Receipt of government grants 175778850.00 171654889.48
Recovery of temporary borrowings and
14563272.6019497545.66
security deposits
Receipt of temporary receipts payable 1068383.22 1440627.59
Other receipts and net current accounts 9227580.54 14644686.92
Total 317657192.98 340383499.80
Other cash payments related to operating activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
R&D expenditures in the form of cash 109818805.43 78682491.15
Office expenses and business traveling
106142740.7983191829.19
expenses
Advertising and promotion expenses
37137875.6832412068.29
business entertainment expenses
Sales commission and customs
18421398.3526768204.05
declaration charges
Insurance expenses 16614037.96 15702592.83
Consulting fees 18007434.45 16308436.60
Other payments and net current accounts 65250108.45 62670912.99
Total 371392401.11 315736535.10
(2) Cash related to investing activities
Other cash receipts related to investing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Redemption of financial products 145000000.00 720000000.00
Recovery of land bond 21564394.06
Recovery of land deposit 88796037.50
Redemption of financial assets for
392525.96
trading
Total 145000000.00 830752957.52
Significant Cash Flows Related to Investing Activities Received: None
Other cash payments related to investing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Purchase of Wealth Management
Products and Large-Denomination 2350000000.00 145000000.00
Certificates of Deposit (CDs)
Payment of Forex Option Margin
8800000.00
Deposits
ayment of Deposits for Engineering
5250160.00
Equipment
1712024 Annual Report of Zhejiang NHU Co. Ltd.
Items Current period cumulative Preceding period comparative
Payment of Project Labor Wage
6456.43
Guarantee Deposits
Total 2364056616.43 145000000.00
Significant Cash Outflows Related to Investing Activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Cash Payments for Acquisition and
Construction of Fixed Assets and 1422887954.55 3709325702.77
Construction-in-Progress
Cash Payments for Acquisition of Land
96685543.79692186861.45
Use Rights
Cash Payments for Acquisition of Other
48685635.9341562123.42
Intangible Assets
Cash Payments for Acquisition of Other
Long-Term Assets 31540180.86 2446984.11
Total
Total 1599799315.13 4445521671.75
(3) Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Cash received form loans 108750334.91
Total 108750334.91
Other cash payments related to financing activities
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Payments for bank financing handling
2003808.292048045.72
charges
Payments of handling charges for issuing
200900.43
letters of guarantee for borrowings
Repayments of principal and interest of
10546764.391377634.28
leases
Repayments of call loans and interest 17309547.21 13760448.64
Total 29860119.89 17387029.07
Changes in Liabilities Arising from Financing Activities
□Applicable □Not applicable
Unit: RMB Yuan
Increase Decrease
Items Opening balance Non-cash Closing balance
Cash movements Non-cash changes Cash movements
changes
Short-
term 1235688062.90 2045395387.98 38263555.42 2156834767.26 1162512239.04
borrowings
Long- 8384373535.06 2285196789.84 241963675.97 3120423371.99 7791110628.88
1722024 Annual Report of Zhejiang NHU Co. Ltd.
Increase Decrease
Items Opening balance Non-cash Closing balance
Cash movements Non-cash changes Cash movements
changes
term
borrowings
(including
long-term
loans due
within one
year)
Lease
liabilities(i
ncluding
lease 6902254.62 8729402.35 10534859.64 5096797.33
liabilities
due within
one year)
dividend
1397182451.441397182451.44
payable
Other
accounts 14858932.78 108750334.91 83482.45 17309547.21 106383202.93
payable
Total 9641822785.36 4439342512.73 1686222567.63 6702284997.54 106383202.93 8958719665.25
（4） Net presentation of cash flows
Relevant factual
Items Basis for adopting a net presentation Financial impact
circumstances
Redemption of Cash flows related to the Company's
Other cash received related to financial products and investment business are the cash
10423500000.00
investing activities structured deposits inflows and outflows of fast-turnover
large-amount and short-term projects
and the presentation of the above cash
flows on a net basis is more indicative
of their impact on the Company's
ability to pay and solvency and is
Purchase of financial more useful for evaluating the
Other cash paid related to
products and Company's ability to pay and 10423500000.00
investing activities
structured deposits solvency and for analyzing the
Company's future cash flows; thus the
Company has presented the cash flows
related to the above business on a net
basis.
1732024 Annual Report of Zhejiang NHU Co. Ltd.
58. Supplement information to the cash flow statement
（1）Supplementary information on the statement of cash flows
Unit: RMB Yuan
Preceding period
Supplement information Current period cumulative
comparative
1. Reconciliation of net profit to cash flows from operating
activities:
Net profit 5896870207.59 2725408902.23
Add: Provision for assets impairment loss 136967808.68 227048860.06
Depreciation of fixed assets oil and gas assets
2154249275.581644749644.57
productive biological assets
Depreciation of right-of-use assets 1683308.27 1234171.43
Amortization of intangible assets 67116768.27 57903454.84
Amortization of long-term prepayments 10178561.69 7857663.93
Losses on disposal of fixed assets intangible assets
-1393189.08-16404163.69
and other long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains) 29672950.00 10977630.48
Losses on changes in fair value (Less: gains) 13600481.19 -29932484.98
Financial expenses (Less: gains) 232201082.89 260056823.19
Investment losses (Less: gains) -78905706.87 -83054284.94
Decrease of deferred tax assets (Less: increase) -1455967.13 49181951.16
Increase of deferred tax liabilities (Less: decrease) 56044501.13 -55641587.22
Decrease of inventories (Less: increase) 26432933.95 -401782933.20
Decrease of operating receivables (Less: increase) -1963541281.38 112781434.03
Increase of operating payables (Less: decrease) 447854402.40 574321857.22
Others 45488046.15 34663924.21
Net cash flows from operating activities 7073064183.33 5119370863.32
2. Significant investing and financing activities not related
to cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets leased in under finance leases
3. Net changes in cash and cash equivalents:
Cash at the end of the period 5521452666.47 4446570415.30
Less: Cash at the beginning of the period 4446570415.30 5151841931.86
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase of cash and cash equivalents 1074882251.17 -705271516.56
(2) Net cash received for disposal of subsidiaries during the period
Unit: RMB Yuan
Items Current period cumulative
Cash or cash equivalents received during the period from the 82791000.00
1742024 Annual Report of Zhejiang NHU Co. Ltd.
Items Current period cumulative
disposal of subsidiaries during the period
Net cash received on disposal of subsidiaries 82791000.00
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Items Closing balance Opening balance
I. Cash 5521452666.47 4446570415.30
Including: Cash on hand 12825.19 21747.98
Cash in bank on demand for payment 5521431438.36 4445046788.85
Other cash and bank balances on demand
8402.921501878.47
for payment
II. Cash and cash equivalents at the end
5521452666.474446570415.30
of the period
Including: use of restricted cash and cash
equivalents by the parent company or 464483762.87 442476066.13
group subsidiaries
(4) Restricted use but still cash and cash equivalents presentation
Unit: RMB Yuan
Reasons for remaining cash
Items Current period cumulative Preceding period comparative
and cash equivalents
464483762.87 89207212.60 Currency funds held abroad
Cash and bank balances
353268853.53 raise funds
Total 464483762.87 442476066.13
(5) Monetary funds other than cash and cash equivalents
Unit: RMB Yuan
Reasons for not being cash
Items Current period cumulative Preceding period comparative
and cash equivalents
Large Certificates of Deposit
2359022374.36
and Interest
30809898.16 77905369.24 Banker's acceptance deposit
8800000.00 Forex Option Margin
8183592.83 500000.00 Letter of Guarantee Deposit
Cash and bank balances 3762850.00 3929600.00 customs Deposit
1458021.83 12048779.84 Letter of Credit Deposit
1263178.80 661215.83 Water deposit
875023.57 870050.56 Safety Construction deposit
Project works labor wage
854699.63853216.21
deposit
22500.00 22500.00 ETC deposit
Total 2415052139.18 96790731.68
1752024 Annual Report of Zhejiang NHU Co. Ltd.
59 Monetary items in foreign currencies
(1) Details
Unit: RMB Yuan
Closing balance in foreign RMB equivalent at the end of
Items Exchange rate
currencies the period
Cash and bank balances 555840001.29
Including: USD 30083978.32 7.188400 216255669.76
EUR 42266145.39 7.525700 318082330.36
HKD 761582.70 0.926040 705256.04
JPY 13255266.00 0.046233 612830.71
BRL 13375620.95 1.171300 15666864.82
MXN 7420751.94 0.349770 2595556.41
PLN 3584.48 0.568270 2036.95
SGD 358952.33 5.321400 1910128.93
VND 31575198.00 0.0002954 9327.31
Accounts receivable 2759097554.44
Including: USD 307615495.71 7.188400 2211263229.36
EUR 54047436.74 7.525700 406744794.67
GBD 535930.50 9.076500 4864373.18
BRL 116302533.28 1.171300 136225157.23
Long-term borrowings 18036415.25
Including: USD 2396642.87 7.525700 18036415.25
Other receivables 33144833.96
Including: USD 1572.00 7.188400 11300.16
EUR 1063856.25 7.525700 8006262.98
JPY 80000000.00 0.046233 3698640.00
HKD 31700.00 0.926040 29355.47
BRL 717136.08 1.171300 839981.49
MXN 57860318.08 0.349770 20237803.45
SGD 60414.63 5.321400 321490.41
Short-term borrowings 10613241.61
Including: USD 121287.53 7.188400 871863.28
EUR 1160338.14 7.525700 8732356.74
DKK 6952536.26 0.145130 1009021.59
Accounts payable 17744492.46
Including: USD 301832.75 7.188400 2169694.54
EUR 1208013.58 7.525700 9091147.80
DKK 275363.75 0.145130 39963.54
BRL 1702448.42 1.171300 1994077.83
1762024 Annual Report of Zhejiang NHU Co. Ltd.
Closing balance in foreign RMB equivalent at the end of
Items Exchange rate
currencies the period
MXN 12721527.71 0.349770 4449608.75
Other payables 77631913.52
Including: USD 8265151.93 7.188400 59413218.13
EUR 2361363.19 7.525700 17770910.96
HKD 31312.90 0.926040 28997.00
BRL 198369.33 1.171300 232350.00
SGD 35035.41 5.321400 186437.43
Non-current liabilities due
8705894.27
within one year
Including: EUR 972667.18 7.525700 7320001.40
BRL 278921.19 1.171300 326700.39
SGD 199043.95 5.321400 1059192.48
Lease liabilities 981140.17
Including: SGD 119833.13 5.321400 637680.02
BRL 293229.87 1.171300 343460.15
(2) A description of the foreign operating entity including in the case of a significant foreign operating
entity a disclosure of its principal place of business outside the country the local currency of its accounts
and the basis for its selection and the reasons for any change in the local currency of its accounts.□Applicable □ Not applicable
60. Leasing
(1) The Company as a les see
□Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable □ Not applicable
Lease costs for short-term leases or low-value assets with simplified treatment
□ Applicable□ Not applicable
Situations involving sale and leaseback transactions
1) Information on right-to-use assets Please refer to item VII 14 of this section for details
2) The Company's accounting policies for short-term leases and leases of low-value assets Please refer to item V 27 of this section for
details. The amounts of short-term lease charges and lease charges for low-value assets recognized in profit or loss are as follows:
Unit: RMB Yuan
Items Current period Increase Preceding period Decrease
Short-term rental costs 3544502.58 6542273.66
Total 3544502.58 6542273.66
3) Current profit or loss and cash flows related to leases
1772024 Annual Report of Zhejiang NHU Co. Ltd.
Unit: RMB Yuan
Items Current period Increase Preceding period Decrease
Interest expense on lease liabilities 288503.24 270011.27
Total cash outflows related to leases 14303937.12 8312444.36
4) The maturity analysis of lease liabilities and the corresponding liquidity risk management Please refer to item XII 1 of this section
for details.
(2) The Company as lessor
Operating leases as lessor
□Applicable □ Not applicable
Unit: RMB Yuan
Of which: Income related to variable lease payments not
Items Rental income
included in lease receipts
Rental income 5989544.16
Total 5989544.16
Financial leases as lessor
□Applicable □ Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable □ Not applicable
Unit: RMB Yuan
Annual undiscounted lease receipts
Items
Closing balance Opening balance
First year 1028642.20 349330.00
Second year 330275.23 41520.00
Third year 330275.23
Total undiscounted lease receipts after
1689192.66390850.00
five years
(3) Recognition of gains and losses on sales under finance leases as a manufacturer or distributor
□Applicable □ Not applicable
VIII. R&D expenses
Unit: RMB Yuan
Items Current period Increase Preceding period Decrease
Employee benefits 457801674.45 400415932.53
Direct input 414653178.46 321079990.14
Depreciation amortization of intangible
82056953.9280744547.58
assets
Office expenses business traveling
45365827.2555869894.26
expenses
Outsourcing expenses 14657098.53 14660221.42
Others 21627007.89 15030889.09
Employee benefits 1036161740.50 887801475.02
1782024 Annual Report of Zhejiang NHU Co. Ltd.
Items Current period Increase Preceding period Decrease
Of which: Expensed research and
1036161740.50887801475.02
development expenditure
IX. Changes in the scope of consolidation
1. Disposal of subsidiaries
Whether there is any transaction or event of losing control of subsidiaries during the period
√ Yes □No
Unit: RMB Yuan
Name of Disposal price at Percentag Disposa Point of loss Basis for Difference Percenta Carryi Fair Gains or Method of Amount of other
Subsidiar point of loss of e of l at the of control determining the between the ge of ng value losses determining comprehensive
y control disposals point of point of loss of disposal price remainin value of the arising the fair income related to
at point of loss of control and the share of g equity of the remai from the value of the equity
loss of control net assets of the at date remain ning remeasur remaining investments in
control subsidiary at the of loss ing equity ement of equity atomic
level of the of equity intere the interest at companies
consolidated control interest st at remainin the level of transferred to
financial at the the g equity the investment profit
statements level of conso at fair consolidate or loss or
corresponding to the lidate value d financial retained earnings
the disposal of consoli d statements
the investment dated financ at the date
financi ial of loss of
al state control and
statem ment key
ents at level assumption
the at the s
date of date
loss of of
control loss
of
contr
ol
All effective
Qiong terms of the
hai Equity Transfer
Boao Agreement
Lido June 21 have been
82791000.00 100.00% sell 47569632.62 0.00%
Real 2024 fulfilled and
Estate industrial and
Co. commercial
Ltd. changes have
been completed
Whether there is a step-by-step disposal of investments in subsidiaries through multiple transactions and loss of control during the
period
□Yes √ No
2. Changes in the scope of consolidation for other reasons
Describe changes in the scope of consolidation due to other reasons (e.g. establishment of new subsidiaries liquidation of
subsidiaries etc.) and their related circumstances:
Methods of
capital percentage of
company identification equity Point of acquisition
contribution contribution
acquisition
Tianjin NHU Materials Technology Co. Ltd. establish June 7 2024 RMB 100 million 100.00%
Cong Ty Tnhh NHU Vietnam establish October 7 2024 USD 150000 100.00%
NHU Life Science GmbH establish October 31 2024 Euro 0.5 million 100.00%
NHU JAPAN CO. LTD. establish November 8 2024 JPY 80 million 100.00%
1792024 Annual Report of Zhejiang NHU Co. Ltd.
X. Interest in other entities
1. Interest in subsidiaries
(1) Composition of the group
Main Holding proportion Acquisition
Place of
Subsidiaries registered capital operating Business nature (%) method
registration
place Direct Indirect
NHU (Hong Hong
Hong Kong
Kong) Trading US2.40million Kong Commerce 100.00% 0.00% Establishment
China
Co. Ltd. China
Shandong
Weifang Weifang
NHU Amino- 1100million(yuan) Manufacturing 100.00% 0.00% Establishment
Shandong Shandong
acids Co. Ltd.Heilongjiang
Suihua
NHU Suihua
1000million(yuan) Heilongjian Manufacturing 100.00% 0.00% Establishment
Biotechnology Heilongjiang
g
Co. Ltd.
2. Transactions in which the share of ownership interest in a subsidiary changes and the subsidiary is still
controlled
(1) Changes in the share of ownership interest in subsidiaries
Subsidiaries Time of change Shareholding before change Shareholding after change
NHU PERFORMANCE
May 2024 100.00% 85.00%
MATERIALS GMBH
(2) Effect of the transaction on minority interests and equity attributable to the parent company
The minority shareholders of NHU Performance Materials GmbH increased the capital of NHU Performance Materials GmbH
resulting in a change in the Company's share of the net assets of NHU Performance Materials GmbH of $1606336.41 which was
credited to capital surplus-capital premium.
3. Interests in joint arrangements or associates
(1) Aggregated financial information of insignificant joint ventures and associates
Unit: RMB Yuan
Closing balance/ Opening balance/
Item
Current period cumulative Preceding period comparative
Joint ventures:
Total carrying amount of investments 358644929.90 216166978.49
Total of the following by percentage of
shareholding
-- Net profit -13194048.59 -17341021.51
-- Total comprehensive income -13194048.59 -17341021.51
Associates:
Total carrying value of investments 506617218.46 480978221.59
Total of the following by percentage of
shareholding
-- Net profit 65807336.48 43633175.81
-- Other comprehensive income 841477.30
-- Total comprehensive income 65807336.48 44474653.11
1802024 Annual Report of Zhejiang NHU Co. Ltd.
XI. Government grants
1. Government grants recognized at the end of the reporting period at the amount receivable
□Applicable √ Not applicable
Reasons for not receiving the projected amount of government grants at the projected point in time
□Applicable √ Not applicable
2. Government grants related to assets
√ Applicable □Not applicable
Unit: RMB Yuan
non-
Opening Asset/reven
Item Increase operating Decrease other Closing balance
balance ue related
income
Deferred
1065586274.49 103294003.66 138798244.94 -4247442.17 1025834591.04 Asset related
income
Total 1065586274.49 103294003.66 138798244.94 -4247442.17 1025834591.04
3. Government grants related to income
√ Applicable □Not applicable
Unit: RMB Yuan
Item Current period Increase Preceding period Decrease
Government grants related to income 201122164.98 188504183.48
Amount of impact of fiscal subsidies on
10691017.53
total profits
Total 211813182.51 188504183.48
XII. Risks related to financial instruments
1. Various types of risks arising from financial instruments
In risk management the Company aims to seek the appropriate balance between the risks and benefits from its use of financial
instruments and to mitigate the adverse effects that the risks of financial instruments have on the Company’s financial performance so
as to maximize the profits of shareholders and other equity investors. Based on such risk management objectives the Company’s risk
management policies are established to identify and analyze the risks faced by the Company to set appropriate risk limits and controls
and to monitor risks and adherence to limits on a timely and reliable basis.The Company has exposure to the following risks from its use of financial instruments which mainly include: credit risk liquidity risk
and market risk. The Management has deliberated and approved policies concerning such risks and details are。
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation.
1812024 Annual Report of Zhejiang NHU Co. Ltd.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date the Company assesses whether the credit risk on a financial instrument has increased significantly since
initial recognition. When assessing whether the credit risk has increased significantly since initial recognition the Company takes into
account reasonable and supportable information which is available without undue cost or effort including qualitative and quantitative
analysis based on historical data external credit risk rating and forward-looking information. The Company determines the changes
in default risk of financial instruments during the estimated lifetime through comparison of the default risk at the balance sheet date
and the initial recognition date on an individual basis or a collective basis.The Company considers the credit risk on a financial instrument has increased significantly when one or more of the following
qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which at the balance sheet date the probability of default in the remaining
lifetime has risen by more than a certain percentage compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial position present or expected
changes in technology market economy or legal environment that will have significant adverse impact on the debtor’s repayment
ability.
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred of which the standard is consistent
with that for credit-impairment:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor for economic or contractual reasons relating to the debtor’s financial difficulty having granted to the
debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default loss rate of default and exposure to
default risk. The Company develops a model of the probability of default loss rate of default and exposure to default risk on the basis
of quantitative analysis of historical data (e.g. counterparty rating guarantee measures and collateral type payment method etc.) and
forward-looking information.
3. Please refer to item VII 3、4、5、 and 6 of this section for details on the reconciliation table of opening balance and closing balance
of provision for losses of financial instrument.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks the
Company has taken the following measures:
(1) Cash and bank balances
1822024 Annual Report of Zhejiang NHU Co. Ltd.
The Company deposits its bank balances and other cash and bank balances in financial institutions with relatively high credit levels
hence its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers using credit settlement on a continuous basis. The Company selects credible
and well-reputed customers based on credit assessment result and conducts ongoing monitoring on balance of receivables to avoid
significant risks in bad debts.As the Company only conducts business with credible and well-reputed third parties collateral is not required from customers. The
Company manages credit risk aggregated by customers. As of December 31 2024 the Company has certain concentration of credit
risk and 28.57% (December 31 2023: 22.95%) of the total accounts receivable was due from the five largest customers of the Company.The Company held no collateral or other credit enhancement on balance of receivables.The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset at the balance sheet.(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated with cash or other
financial assets settlement which is possibly attributable to failure in selling financial assets at fair value on a timely basis or failure
in collecting liabilities from counterparties of contracts or early redemption of debts or failure in achieving estimated cash flows.In order to control such risk the Company comprehensively utilized financing tools such as notes settlement bank borrowings etc.and adopts long-term and short-term financing methods to optimize financing structures and finally maintains a balance between
financing sustainability and flexibility. The Company has obtained credit limit from several commercial banks to meet working capital
requirements and expenditures.Financial liabilities classified based on remaining time period till maturity
Unit: RMB Yuan
December 31 2024
Items Carrying amount Contract amount not Within 1 year 1-3 years Over 3 years
yet discounted
Bank
8953622867.929265719511.923821786544.745361753527.0382179440.15
borrowings
Notes payable 159164822.28 159164822.28 159164822.28
Accounts
1685979157.551685979157.551685979157.55
payable
Other
122424090.50122424090.50122424090.50
payables
Lease
5096797.336313749.851711482.851711886.072890380.93
liabilities
Subtotal
10926287735.5811239601332.105791066097.925363465413.1085069821.08
(Continued)
Unit: RMB Yuan
December 31 2023
Items Carrying amount Contract amount not Within 1 year 1-3 years Over 3 years
yet discounted
Bank
9620061597.96 10115809381.27 3052860592.80 6305307508.57 757641279.90borrowings
Notes payable
349347472.36349347472.36349347472.36
Accounts
1930958598.05 1930958598.05payable 1930958598.05
1832024 Annual Report of Zhejiang NHU Co. Ltd.
December 31 2023
Items Carrying amount Contract amount not Within 1 year 1-3 years Over 3 years
yet discounted
Other
payables 53671773.90 53671773.90 53671773.90
Lease
6902254.62 8401587.43 1937137.81 3097878.18liabilities 3366571.44
Subtotal
11960941696.8912458188813.015388775574.926308405386.75761007851.34
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financial instruments due to
changes in market price. Market risk mainly includes interest risk and foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financial instruments due to
changes in market interest. The Company’s fair value interest risks arise from fixed-rate financial instruments while the cash flow
interest risks arise from floating-rate financial instruments. The Company determines the proportion of fixed-rate financial instruments
and floating-rate financial instruments based on the market environment and maintains a proper financial instruments portfolio through
regular review and monitoring. The Company’s interest risk in cash flows relates mainly to bank borrowings with floating interest rate.As of December 31 2023 balance of borrowings with interest accrued at floating interest rate totaled 4534.01 million yuan (December
31 2023: 9620.06 million yuan). If interest rates had been 50 basis points higher/lower and all other variables were held constant the
Company’s profit before tax and equity will not be significantly affected.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument resulted from changes
in exchange rate. The Company’s foreign currency risk relates mainly to foreign currency monetary assets and liabilities. When short-
term imbalance occurred to foreign currency assets and liabilities the Company may trade foreign currency at market exchange rate
when necessary in order to maintain the net risk exposure within an acceptable level.Please refer to item VII 58(1) of the notes to the financial statements for details on foreign currency financial assets and liabilities at
the end of the period.
2. Hedging
(1) The Company conducts hedging business for risk management.
□Applicable □Not applicable
1）During the period under review the Company carried out foreign exchange hedging business using forward settlement and
other derivative contracts as hedging instruments and some of the expected purchases and sales transactions involving foreign
exchange cash flows as hedged items as a means of hedging the risk of fluctuations in expected future cash flows arising from expected
purchases and sales borne by the Company as the prices in the foreign exchange market fluctuate.
2）During the period under review the Company conducted foreign exchange hedging business using forward settlement and
other derivative contracts as hedging instruments and certain foreign exchange deposits as hedged items as a means of hedging the
Company's exposure to the risk of fluctuations in existing foreign exchange deposits in response to fluctuations in foreign exchange
market prices.
(2) The Company conducts eligible hedging operations and applies hedge accounting
1842024 Annual Report of Zhejiang NHU Co. Ltd.
□Applicable □ Not applicable
(3) The Company conducts hedging operations for risk management and expects to achieve its risk management objectives
but does not apply hedge accounting
□ Applicable □Not applicable
Items Reasons for not applying hedge accounting Effect on the financial statements
The Company extensively uses foreign exchange forward
Derivative financial assets:
contracts and other tools for foreign exchange risk
745816.34yuan
management between USD EUR CNY and JPY on a
Derivative financial liabilities:
foreign exchange swap global scale; because there is a certain offsetting
11151258.46 yuan
(FX) contract relationship between the exchange rate changes between
Investment income: -23323516.77yuan
different currencies which can to a certain extent have the
Gains on changes in fair value: -
same effect as that of hedge accounting hedge accounting
13600481.19 yuan
has not been applied.
3. Financial assets
(1) Classification of transfer methods
□ Applicable □Not applicable
Unit: RMB Yuan
Amount of
Nature of financial Status of Basis for determining
Items financial assets
assets transferred derecognition derecognition
transferred
The main risks and rewards
such as the related interest
Endorsement
Receivables financing 1072215565.26 Full derecognition rate risk and credit risk have
discounting
been transferred to banks and
third parties
The main risks and rewards
such as the related interest
Endorsement
notes receivable 161456130.48 Full derecognition rate risk and credit risk have
discounting
been transferred to banks and
third parties
Total 1233671695.74
(2) Financial assets derecognized due to transfers
□ Applicable □Not applicable
Unit: RMB Yuan
Modalities for the transfer of Amount of financial assets Gains or losses related to
Items
financial assets derecognized derecognition
Receivables financing Endorsement discounting 1072215565.26 -1631336.27
notes receivable Endorsement discounting 161456130.48 -642179.55
Total 1233671695.74 -2273515.82
(3) Transfer of financial assets with continuing involvement in assets
□Applicable □ Not applicable
1852024 Annual Report of Zhejiang NHU Co. Ltd.
XIII. Fair value disclosure
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
Unit: RMB Yuan
Fair value as at the balance sheet date
Items Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Recurring fair value
--------
measurement
(i) Financial assets held
745816.34745816.34
for trading
1. Financial assets at
fair value through 745816.34 745816.34
profit or loss
（1）Derivative
745816.34745816.34
financial assets
2. Receivables
523913135.22523913135.22
financing
3. Other investments in
19498147.5519498147.55
equity instruments
Total assets measured
at fair value on an 745816.34 543411282.77 544157099.11
ongoing basis
(ii) Trading financial
11151258.4611151258.46
liabilities
Derivative financial
11151258.4611151258.46
liabilities
Total liabilities
measured at fair value 11151258.46 11151258.46
on an ongoing basis
II. Non-continuing fair
--------
value measurements
2. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 2 fair value
at recurring and non-recurring fair measurement
Derivative financial assets/liabilities held by the Company for fair value measurement in Level 2 are forward foreign exchange contracts
and the Company uses the present value of the difference between the agreed delivery rate of the forward foreign exchange contract
and the forward foreign exchange rate in the market at the balance sheet date to determine its fair value.
3. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 3 fair value
at recurring and non-recurring fair measurement
(1) The receivable financing held by the Company for Level 3 fair value measurement is bank acceptance receivables which have low
credit risk and short remaining maturity and the Company determines the fair value of these receivables based on their face balances.
(2) The Company's investments in other equity instruments measured at fair value in Level 3 are equity in unlisted companies. For
unlisted investments in equity instruments the Company estimates the fair value using a combination of market approach and
discounted future cash flows. The Company measures the investment cost as a reasonable estimate of fair value because the business
environment and operating conditions and financial conditions of the investee companies Zhejiang Second Pharma Co. Ltd. and
Shanghai NewMargin Yongjin Eqiuty Enterprise (LP) have not undergone any significant changes.
1862024 Annual Report of Zhejiang NHU Co. Ltd.
XIV Related parties and related party transactions
1. Parent company
Holding Voting right
Place of
Parent company Business nature Registered capital proportion over the proportion over the
registration
Company Company
NHU Holding Xinchang 120.00 million
Manufacturing 50.08% 50.08%
Group Co. Ltd. Zhejiang yuan
Remarks on the parent company
The Company’s ultimate controlling party is the natural person Hu Baifan.
2. Subsidiaries of the Company
Please refer to item X 1(1) of the notes to the financial statements for details on the Company’s subsidiaries.
3. Joint ventures and associates of the Company
Please refer to item VII 11 of the notes to the financial statements for details on the Company’s significant joint ventures and
associates.
4. Other related parties of the Company
Related parties Relationships with the Company
Beijing Front Pharmaceutical Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Zhejiang Asen Pharmaceutical Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Zhejiang Deli Equipment Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Front Pharmaceutical PLC. Controlled by NHU Holding Group Co. Ltd.Weifang NHU Real Estate Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Qionghai Heyue Property Services Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Qionghai Boao Holliyard Hotel Management Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Shaoxing Heyue Property Services Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Zhejiang Jingshi Real Estate Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Shaoxing Yuexiu Education Development Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Shaoxing Jinghe Hotel Management Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Shaoxing Shangyu NHU Real Estate Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Zhejiang Yuexiu University of Foreign Languages Controlled by NHU Holding Group Co. Ltd.Changbai Mountain Nature Reserve and Yuehe Real Estate
Controlled by NHU Holding Group Co. Ltd.Development Co. Ltd
Heilongjiang Haotian Corn Development Co. Ltd. Minority shareholders of subsidiaries
Fuyuan Pharmaceutical Co. Ltd. Cangzhou Branch Branch of Beijing Winsunny Pharmaceutical Co. Ltd.Shaoxing Heyue Property Service Co. Ltd. Shangyu Branch Branch of Shaoxing Heyue Property Services Co. Ltd.Other remarks：
As Client B holds 25% equity of NHU Europe GmbH the holding subsidiary of the Company’s subsidiary NHU (Hong Kong) Trading
Co. Ltd. the Company discloses transactions between Client B and NHU Europe GmbH as well as balances in related party
transactions for the sake of prudence.
1872024 Annual Report of Zhejiang NHU Co. Ltd.
5. Related party transactions
(1) Purchase and sale of goods rendering and receiving of services
Purchase of goods and receiving of services
Unit: RMB Yuan
Content of Current period Transaction limit Whether exceeds Preceding period
Related parties
transaction cumulative approved transaction limit comparative
Qionghai Boao
Catering and
Holliyard Hotel
accommodation 57124.58 278019.64
Management Co.services
Ltd.Qionghai Heyue Catering and
Property Services accommodation 215267.33 615003.21
Co. Ltd. services
Shaoxing Heyue Catering and
Property Services accommodation 199560.00 203704.00
Co. Ltd. services
Shaoxing Heyue
Catering and
Property Service
accommodation 1047605.30 1027168.03
Co. Ltd. Shangyu
services
Branch
Shaoxing Jinghe Catering and
Hotel Management accommodation 1613799.89 1502395.50
Co. Ltd. services
Shaoxing Yuexiu
Education Receiving of
51634.6221473.58
Development Co. services
Ltd.
4290000.00 Yes
Zhejiang Asen
Pharmaceutical Purchase of goods 153798.40 851758.27
Co. Ltd.Zhejiang Yuexiu Catering and
University of accommodation 3000.00 7780.00
Foreign Languages services
Shaoxing Heyue
Property Service
maintenance fund 687262.27
Co. Ltd. Shangyu
Branch
Zhejiang Jingshi
Receiving of
Real Estate Co. 47917.91
services
Ltd.NHU Holding Receiving of
226858.68
Group Co. Ltd. services
Changbai
Mountain Nature
Catering and
Reserve and Yuehe
Accommodation 17368.50
Real Estate
Services
Development Co.Ltd
Anhui Innovation Fees for
Technology Co. consultancy 4716980.95
Ltd services
Heilongjiang Purchase of goods 12603362.84 209059.75
Haotian Corn
Development Co. Buy Steam 1251926.61
1882024 Annual Report of Zhejiang NHU Co. Ltd.
Content of Current period Transaction limit Whether exceeds Preceding period
Related parties
transaction cumulative approved transaction limit comparative
Ltd.Zhejiang Chunhui Buy Steam 104188675.73 98139205.41
Environmental
Protection Energy Receiving of 601925.09 353052.42
Co. Ltd. services
Zhejiang Deli Purchase of goods 101971070.78 197047387.05
Equipment Co. Receiving of 126000000.00 No
Ltd. 1276976.10 5332882.32 services
Zhejiang Saiya
Chemical Purchase of goods 262798027.33 257890000.00 No 243288750.67
Materials Co. Ltd.Fees for
CysBio ApS consultancy 7899201.50
services
Shandong Bin’an Receiving of
36698.11
Vocational services
Training School
training fee 734243.51 1083870.86
Co. Ltd.Total 488495478.86 388180000.00 563866317.88
Sale of goods and rendering of services
Unit: RMB Yuan
Related parties Content of transaction Current period cumulative Preceding period comparative
Beijing Winsunny Pharmaceutical intermediates
47169.81
Pharmaceutical Co. Ltd. testing fees
Labor costs etc. 6735.85
Envalior NHU Engineering Utilities 1683610.39 1629290.16
Materials (Zhejiang) Co.Ltd. Utilities fees 20059.77 43789.59
Scrapped materials 131826245.23 139102756.74
Pharmaceutical intermediates
Front Pharmaceutical PLC. 1247787.63 1150631.16
testing fees
Shandong Bin’an Vocational Waste and scrap materials 23372.54
Training School Co. Ltd. Management Service Fee 226415.09 226415.10
Shaoxing Heyue Property
waste materials 16880.73
Services Co. Ltd.NHU Holding Group Co.training fee 46317.42
Ltd.Zhejiang Asen Pharmaceutical intermediates
17462.266735.85
Pharmaceutical Co. Ltd. test fees
Zhejiang Chunhui
Environmental Protection Pharmaceutical intermediates 136283.19 53097.35
Energy Co. Ltd.training fee 20895.92
Zhejiang Deli Equipment Co.installations 42477.88
Ltd.new material 220884.94 424663.96
Zhejiang Second Pharma Co. Pharmaceutical intermediates
5603.771415.09
Ltd. test fees
Fuyuan Pharmaceutical Co. installations 2300.89
1892024 Annual Report of Zhejiang NHU Co. Ltd.
Related parties Content of transaction Current period cumulative Preceding period comparative
Ltd. Cangzhou Branch Pharmaceutical intermediates
188679.25
test fees
Provision of labor 17514318.25
Ningbo ZRCC NHU
Sales of goods 375238.75
Biotechnology Co. Ltd.installations 420242.32
Total 153885131.73 142842645.15
(2) Related party leases
The Company as the lessor:
Unit: RMB Yuan
Lease income recognized in Lease income recognized in
Lessees Types of assets leased
the current period preceding period
Envalior NHU Engineering Materials Land use right and
1062552.191053619.11
(Zhejiang) Co.Ltd. buildings
Qionghai Boao Holliyard Hotel Land use right and
312000.00480000.00
Management Co. Ltd. buildings
Land use right and
Zhejiang Jingshi Real Estate Co. Ltd. 326238.53 336024.47
buildings
Land use right and
Zhejiang Deli Equipment Co. Ltd. 77064.23 77064.23
buildings
Land use right and
NHU Holding Group Co. Ltd. 16513.76 16513.76
buildings
Land use right and
Weifang NHU Real Estate Co. Ltd. 10285.72 10285.72
buildings
The Company as the lessee:
Unit: RMB Yuan
Rental costs for short-term leases and leases of low-value assets with simplified
Types of assets treatment (if applicable)
Lessors
leased Lease expenses recognized in the Lease expenses recognized in preceding
current period period
NHU Holding Land use right and
684581.481206513.24
Group Co. Ltd. buildings
(3) Related party guarantees
The Company as a guaranteed party
Unit: RMB Yuan
Whether the guarantee
Guarantors Amount guaranteed Commencement date Maturity date
is mature
NHU Holding Group 248000000.00 December 03 2020 September 21 2025
No
Co. Ltd. 200000000.00 November 17 2022 November 14 2025 No
Total 448000000.00
(4) Borrowings from related parties
Unit: RMB Yuan
related party amount of starting date maturity date Remarks
1902024 Annual Report of Zhejiang NHU Co. Ltd.
money on loan
Interbank Borrowing
The subsidiary Qionghai Bo'ao Lido Real
Estate Co. Ltd. engaged in intra-group
borrowing of funds from Xinhecheng
NHU Holding Holding Group Co. Ltd. Following the
Group Co. 91524270.15 June 19 2024 June 19 2025 transfer of ownership of Qionghai Bo'ao Lido
Ltd. Real Estate Co. Ltd. on June 21 2024 the
outstanding balance of the borrowed funds
was correspondingly assumed by the
transferee.Total 91524270.15
(5) Key management’s emoluments
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Key management’s emoluments 31615876.34 26515745.04
(6) Other related party transactions
(1) During the current period the subsidiary NHU Europe GmbH sold goods amounting to RMB 187246146.36 (excluding tax) to
CHR.Olesen A/S with an ending accounts receivable balance of RMB 49691804.18 as of the reporting date.
(2) The Company divested 100% equity interest in its wholly-owned subsidiary Qionghai Bo'ao Lido Real Estate Co. Ltd. to NHU
Holding Group Co. Ltd. at a transaction price of RMB 82791000.00. The net asset value of Qionghai Bo'ao Lido Real Estate Co.Ltd. as of April 30 2024 was assessed by Kunyuan Asset Appraisal Co. Ltd. using the asset-based approach with an appraised net
asset value of RMB 82791016.25 as documented in the Asset Appraisal Report (Kunyuan Report No. [2024] 491) issued on June 13
2024. The transaction price was determined with reference to this appraised value.
6. Balance due to or from related parties
(1) Balance due from related parties
Unit: RMB Yuan
Closing balance Opening balance
Items Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Envalior NHU
Accounts
Engineering Materials 33814553.47 1690727.67 41837233.16 2091861.66
receivable
(Zhejiang) Co.Ltd.Subtotal 33814553.47 1690727.67 41837233.16 2091861.66
Advance Zhejiang Deli Equipment
45926357.35
paid Co. Ltd.Subtotal 45926357.35
Ningbo ZRCC NHU
2000000.00100000.00
Biotechnology Co. Ltd.Other Zhejiang Chunhui
receivables Environmental Protection 20000.00 1000.00 20000.00 16000.00
Energy Co. Ltd.Shaoxing Heyue Property 18400.00 920.00
1912024 Annual Report of Zhejiang NHU Co. Ltd.
Closing balance Opening balance
Items Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Services Co. Ltd.Envalior NHU
Engineering Materials 711.08 35.55
(Zhejiang) Co.Ltd.Subtotal 2020000.00 101000.00 39111.08 16955.55
(2) Balance due to related parties
Unit: RMB Yuan
Items Related parties Closing book balance Opening book balance
Zhejiang Deli Equipment Co.
11421085.7113573871.90
Ltd.Zhejiang Saiya Chemical
199699.11
Materials Co. Ltd.Zhejiang Second Pharma Co.
6408.006408.00
Accounts payable Ltd.Heilongjiang Haotian Corn
852650.48110873.46
Development Co. Ltd.Zhejiang Chunhui
Environmental Protection 11789009.62 12040573.60
Energy Co. Ltd.Subtotal 24069153.81 25931426.07
Zhejiang Deli Equipment Co.
13009.6413009.64
Ltd.Contract liabilities
Ningbo ZRCC NHU
119219670.23178858243.73
Biotechnology Co. Ltd.Subtotal 119232679.87 178871253.37
Zhejiang Deli Equipment Co.
4190.003740.00
Ltd.Other payables
Ningbo ZRCC NHU
1650.0012750.00
Biotechnology Co. Ltd.Subtotal 5840.00 16490.00
Zhejiang Deli Equipment Co.
1691.251691.25
Ltd.Other current liabilities
Ningbo ZRCC NHU
15498557.1313180653.87
Biotechnology Co. Ltd.Subtotal 15500248.38 13182345.12
XV. Commitments and contingencies
1. Significant commitments
Significant commitments as at the balance sheet date
(1)Forward exchange settlement contracts
Pursuant to “ISDA 2002 MASTER AGREEMENT” entered into between the Company and Bank of China (Hong Kong) Limited
“ISDA 2002 MASTER AGREEMENT” entered into with DBS Bank (China) Limited the GLOBAL CAPITAL MARKETS
TRANSACTION and the related transaction application form entered into with HSBC Bank (China) Limited Hangzhou Branch the
NAFMII Master Agreement and Supplemental Agreement (No. Y161136) with the Bank of China Limited Zhejiang Branch NAFMII
1922024 Annual Report of Zhejiang NHU Co. Ltd.
Master Agreement and Supplemental Agreement (No. Y161136) as of December 31 2024 the details of the Company's undelivered
forward settlement contracts are as follows:
Unit: USD
Forms of settlement
Currency and sale of foreign Amount Exchang Rate Settlement Date
exchange
purchase of foreign
10000000.007.054212/30/2025
currency
settle foreign
10000000.007.15341/9/2025
exchange
settle foreign
10000000.007.15061/16/2025
exchange
settle foreign
5000000.007.14421/21/2025
exchange
settle foreign
5000000.007.14411/14/2025
exchange
settle foreign
5000000.007.15881/14/2025
USD exchange
settle foreign
5000000.007.16951/21/2025
exchange
settle foreign
5000000.007.17851/24/2025
exchange
settle foreign
10000000.007.15001/23/2025
exchange
settle foreign
10000000.007.20003/21/2025
exchange
settle foreign
10000000.007.20004/23/2025
exchange
settle foreign
10000000.007.20003/26/2025
exchange
小计95000000.00
(2)Letters of guarantee issued but undue
As of December 31 2024 the undue letters of guarantee issued by the Company and its subsidiaries are as follows:
Issuing banks Applicants Type of L/G Amount Conditions for issuing
Performance Occupying credit line
USD 148000.00
Guarantee
Bank of China Limited Performance Occupying credit line
The Company USD 70900.00
Xinchang Sub-branch Guarantee
Performance Occupying credit line
USD 52000.00
Guarantee
Bank of China Limited Shandong NHU Amino- quality Deposit of 8183592.83
CNY 8183592.83
Weifang Binhai Branch acids Co. Ltd. Guarantee yuan
(3)Letters of credit issued but undue
As of December 31 2024 the undue letters of credit issued by the Company and its subsidiaries are as follows:
Issuing banks Applicants Balance of L/C Conditions
JPY 540000000.00 Occupying credit line
Bank of China
The Company
Limited Xinchang USD 167824.80 Occupying credit line
Branch
USD 232584.30 Occupying credit line
1932024 Annual Report of Zhejiang NHU Co. Ltd.
Issuing banks Applicants Balance of L/C Conditions
Bank of China
Zhejiang NHU Imports &
Limited Xinchang EUR 185500.00 Deposits in the amount of Euro 185500.00
Exports Co. Ltd.Branch
Bank of China
Zhejiang NHU Special
Limited Shangyu JPY 1180000.00 Deposit of 62000.00 yuan
Sub-branch Materials Co. Ltd.
(4) The “notes pool” business
Pursuant to the “Notes Pool Service Agreement on Yuntong Account of Bank of Communications” entered into between the Company
and Bank of Communications Co. Ltd. the Company pledged and endorsed bank acceptance to the depositary bank forming a pledged
notes pool; the Company also opened a notes pool deposit account to provide guarantee for the credit granted under the note pledge
and to deposit the pledged bank acceptance for payments. The available credit line for pledge is the sum of pledged notes and the actual
balance of deposit account less pledged notes used. As stipulated in the agreement the sum of pledged notes and the balance of deposit
account shall not be less than the pledged amount used for issuing notes. Pursuant to the “Notes Pool Cooperation Agreement” entered
into among the Company its subsidiaries Shangyu NHU Bio-Chem Co. Ltd. Zhejiang NHU Pharmaceutical Co. Ltd. Zhejiang NHU
Special Materials Co. Ltd. Shaoxing Yuchen New Materials Co. Ltd. Shandong NHU Pharmaceutical Co. Ltd. Shandong NHU
Vitamins 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 Vityesun Animal Nutrition and Health Co. Ltd Zhejiang NHU Imports & Exports Co. Ltd.. and China Zheshang Bank Co.Ltd. the Company pledged assets pool or notes pool for guarantee and opened a notes deposit account to pay deposits at a certain
percentage with no specific agreement on the amount of deposits. As of December 31 2024 balance of pledged bank acceptance
amounted to 135550145.14 yuan deposits of notes pool in China Zheshang Bank Co. Ltd. amounted to 30809898.16 yuan.
(5) Besides the aforementioned events and assets with title or use right restrictions as stated in this section the Company has no other
significant commitments to be disclosed as of the balance sheet date.
2. Contingencies
(1) There are no material contingencies that the Company is required to disclose which should also be
explained
In accordance with the Derivative Trading Mandate submitted by the Company and its subsidiaries to China Merchants Bank the
details of outstanding option contracts held by the Company and its subsidiaries as of December 31 2024 are outlined below:
ontingent
Settlement Collateral
Authorized Bank Applicant Currency Notional Strike Rate
Date Requirement
Amount
CMB Hangzhou Zhejiang NHU Pharmaceutical Margin deposit:
USD 2000000.00 7.6500 2025/6/30
Branch Co. Ltd. RMB 1000000.00
CMB Weifang Shandong NHU Pharmaceutical Margin deposit:
USD 2000000.00 7.6500 2025/6/30
Branch Co. Ltd. RMB 1000000.00
CMB Weifang Shandong NHU Fine Chemical Margin deposit:
USD 2000000.00 7.6500 2025/6/30
Branch Technology Co. Ltd. RMB 1000000.00
CMB Hangzhou Heilongjiang NHU Margin deposit:
USD 2000000.00 7.6500 2025/6/30
Branch Biotechnology Co. Ltd. RMB 1000000.00
CMB Hangzhou Margin deposit:
The Company USD 2000000.00 7.7600 2025/12/30
Branch RMB 1200000.00
CMB Hangzhou Shangyu NHU Biochemical Margin deposit:
USD 2000000.00 7.7600 2025/12/30
Branch Co. Ltd. RMB 1200000.00
CMB Hangzhou Zhejiang NHU Special Margin deposit:
USD 2000000.00 7.7600 2025/12/30
Branch Materials Co. Ltd. RMB 1200000.00
1942024 Annual Report of Zhejiang NHU Co. Ltd.
ontingent
Settlement Collateral
Authorized Bank Applicant Currency Notional Strike Rate
Date Requirement
Amount
CMB Hangzhou Shandong NHU Amino Acid Margin deposit:
USD 2000000.00 7.7600 2025/12/30
Branch Co. Ltd. RMB 1200000.00
(2) Disclosure of Significant Contingencies
The Company hereby confirms that there are no material contingent liabilities requiring disclosure as of the reporting date.XVI. Events after the balance sheet date
1. Profit distribution
roposed cash dividend per 10 shares (RMB) 5
Proposed bonus share issue per 10 shares (share) 0
Proposed capital conversion per 10 shares
0
(share)
Approved cash dividend per 10 shares (RMB) 1536710840.00
Approved bonus share issue per 10 shares
0
(share)
Approved capital conversion per 10 shares
0
(share)
Based on the existing total share capital of 3073421680 shares a cash
dividend of RMB5 (inclusive of tax) for every 10 shares will be paid to all
shareholders 0 bonus shares will be distributed (inclusive of tax) and no
Profit distribution plan
capitalization will be made from capital reserve. A total of
RMB1536710840.00 is distributed in cash and the remaining profits
available for distribution by shareholders are carried forward to the next year.
2. Description of other events after the balance sheet date
As of the date of approval for issuing the financial statements the Company has no other significant events after the balance sheet
date to be disclosed.XVII. Other significant events
1. Segment information
(1) Identification basis and accounting policies for reportable segments
Reportable segments are identified according to the structure of the Company’s internal organization management requirements and
internal reporting system and based on business segments. Assets and liabilities shared by different segments are allocated among
segments proportionate to their respective sizes.
1952024 Annual Report of Zhejiang NHU Co. Ltd.
(2) Financial information of reportable segments
Unit: RMB Yuan
Pharmaceutical Inter-segment
Items Others Total
chemicals offsetting
Operating revenue 19702494096.15 2125142633.98 218044501.68 21609592228.45
Including: Revenue
from contracts with 19697890762.30 2109645575.01 203933653.02 21603602684.29
customers
Operating cost 11108068530.24 1692001593.10 218069476.69 12582000646.65
Total assets 39882866566.81 3995854890.62 889588986.46 42989132470.97
Total liabilities 12114386797.57 1879176178.38 449980767.91 13543582208.04
XVIII. Notes to the main items of the parent company's financial statements
1. Accounts receivable
(1) Age analysis
Unit: RMB Yuan
Ages Closing balance Opening balance
Within 1 year 1531673396.24 659625316.20
Total 1531673396.24 659625316.20
(2) Details on categories
Unit: RMB Yuan
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Categories Carrying Carrying
Provision Provision
Amount % to total Amount amount Amount % to total Amount amount
proportion proportion
Including:
Receivables
with
provision 1531673 7658366 1455089 6596253 3298126 6266440
100.00%5.00%100.00%5.00%
made on a 396.24 9.81 726.43 16.20 5.81 50.39
collective
basis
153167376583661455089659625332981266266440
Total 100.00% 5.00% 100.00% 5.00%
396.249.81726.4316.205.8150.39
Provision made on a collective basis using age analysis method:
Unit: RMB Yuan
Closing balance
Items
Book balance Provision for bad debts Provision proportion
Within 1 year 1531673396.24 76583669.81 5.00%
Total 1531673396.24 76583669.81
1962024 Annual Report of Zhejiang NHU Co. Ltd.
Provision for bad debts on accounts receivable is made in accordance with the general model of expected credit losses if any:
□Applicable □ Not applicable
(3) Provisions made collected or reversed in the current period
Provisions made in the current period:
Unit: RMB Yuan
Increase/Decrease
Opening
Categories Recovery/ Closing balance
balance Accrual Write-off Others
Reversal
Provision made
on a collective 32981265.81 43602404.00 76583669.81
basis
Total 32981265.81 43602404.00 76583669.81
(4) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the total balance
Debtors Book balance Provision for bad debts
of accounts receivable (%)
Client 1 1112142143.44 72.61% 55607107.17
Client 2 138024638.68 9.01% 6901231.93
Client 3 50083032.17 3.27% 2504151.61
Client 4 20949575.56 1.37% 1047478.78
Client 5 18099300.00 1.18% 904965.00
Total 1339298689.85 87.44% 66964934.49
2. Other receivables
Unit: RMB Yuan
Items Closing balance Opening balance
Other receivables 1008085932.79 2908050463.81
Total 1008085932.79 2908050463.81
(1) Other receivables
1) Details on categories
Unit: RMB Yuan
Nature of receivables Closing book balance Opening book balance
loan splitting 995850000.00 3038350000.01
Deposit Guarantee 13368946.50 13376459.00
Export Tax Refund 41117094.74 5735604.80
Employee reserve fund 5580822.60 2436000.00
Other 3670632.73 1336185.69
Total 1059587496.57 3061234249.50
1972024 Annual Report of Zhejiang NHU Co. Ltd.
2) Age analysis
Unit: RMB Yuan
Ages Closing book balance Opening book balance
Within 1 year (inclusive) 1044830990.72 3047240876.60
1-2 years 1070952.85 457610.37
2-3 years 325560.47
Over 3 years 13359992.53 13535762.53
3-4 years 25770.00
4-5 years 162455.81
Over 5 years 13359992.53 13347536.72
Total 1059587496.57 3061234249.50
3) Disclosure by bad debt accrual method
Unit: RMB Yuan
Closing balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
debts Carryi
Categories
Provisio Carrying ng
% to n amount % to Provision amoun
Amount Amount Amount Amount
total proporti total proportion t
on
Including:
Receivables with 29080
10595875150156100808530612341531837
provision made on a 100.00% 4.86% 100.00% 5.00% 50463.
496.573.78932.79249.5085.69
collective basis 81
Including:
29080
10595875150156100808530612341531837
Total 100.00% 4.86% 100.00% 5.00% 50463.
496.573.78932.79249.5085.69
81
Provision for bad debts by portfolio: 51501563.78
Unit: RMB Yuan
Closing balance
Categories
Book balance Provision for bad debts Provision proportion
Receivables with provision
1059587496.5751501563.784.86%
made on a collective basis
Total 1059587496.57 51501563.78
1982024 Annual Report of Zhejiang NHU Co. Ltd.
Provision for bad debts is made on the basis of the general model of expected credit losses:
Unit: RMB Yuan
Phase I Phase II Phase III
Provision for bad debts Lifetime expected Lifetime expected 12-month expected Total
credit losses (credit not credit losses (credit
credit losses
impaired) impaired)
Opening balance 152075263.59 91522.07 1017000.03 153183785.69
Opening balance in the
current period
--Transferred to phase II -53547.64 53547.64
--Transferred to phase III -65112.09 65112.09
Provision made in the
-101836021.15134232.9519566.29-101682221.91
current period
Closing balance 50185694.80 214190.57 1101678.41 51501563.78
The basis for the classification of each stage and the percentage of provision for bad debts:
Accounts aged less than one year are classified as stage I those aged 1-2 years are classified as stage II and those aged more than 2
years are classified as stage III.Changes in the carrying amount of the provision for losses that are significant in terms of the amount of change during the period.□Applicable □Not Applicable
4) Details of the top 5 debtors with largest balances
Unit: RMB Yuan
Proportion to the
Nature of total balance of Provision for bad
Debtors Book balance Ages
receivables other receivables debts
(%)
Shandong NHU
Fine Chemical
Science and Within 1 year
Call loans 404850000.00 38.21% 20242500.00
Technology Co. (inclusive)
Ltd.Heilongjiang Xinh
Within 1 year
ao Thermal Power Call loans 225000000.00 21.23% 11250000.00
(inclusive)
Co.Ltd.Xinchang NHU Within 1 year
Call loans 185000000.00 17.46% 9250000.00
Vitamins Co. (inclusive)
Heilongjiang NHU
Within 1 year
Biotechnology Call loans 181000000.00 17.08% 9050000.00
(inclusive)
Co. Ltd.National Revenue
Export tax refund Within 1 year
Service (export tax 41117094.74 3.88%
(inclusive)
refunds receivable)
Total 1036967094.74 97.86% 49792500.00
1992024 Annual Report of Zhejiang NHU Co. Ltd.
3. Long-term equity investments
Unit: RMB Yuan
Closing balance Opening balance
Provision Provision
Items for for
Book balance Carrying amount Book balance Carrying amount
impairme impairme
nt nt
Investments in
10822058350.1210822058350.1210176078842.1210176078842.12
subsidiaries
Investments in
associates and 666079397.87 666079397.87 502157305.30 502157305.30
joint ventures
Total 11488137747.99 11488137747.99 10678236147.42 10678236147.42
(1) Investments in subsidiaries
Unit: RMB Yuan
Increase/Decrease
Opening
Investm Provisi Closing balance
Opening carrying balance of Closing carrying
Investees Investments ents on for of provision for
amount provision for Others amount
increased decreas impair
impairment
impairment
ed ment
Xinchang NHU
Vitamins Co. 149407990.15 149407990.15
Ltd.Zhejiang NHU
Import & 13500000.00 13500000.00
Export Co. Ltd.Xinchang NHU
Vitamins Co. 54020492.00 -54020492.00
Ltd.Zhejiang NHU
Import & 5000000.00 5000000.00
Export 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
Special
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.
2002024 Annual Report of Zhejiang NHU Co. Ltd.
Increase/Decrease
Opening
Investm Provisi Closing balance
Opening carrying balance of Closing carrying
Investees Investments ents on for of provision for
amount provision for Others amount
increased decreas impair impairment
impairment
ed ment
Heilongjiang
NHU
1300000000.00600000000.001900000000.00
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
12800000.0012800000.00
PTE. LTD.Tianjin NHU
Materials Tec
100000000.00100000000.00
hnology Co.Ltd.Total 10176078842.12 700000000.00 -54020492.00 10822058350.12
(2) Investments in associates and joint ventures
Unit: RMB Yuan
Opening Increase/Decrease
Closi
balance ng
of balan
Opening Adjustmen Cash Investment Provisio ce of
Investees carrying provision Investme t in other Changes in dividend/
Closing carrying
Investments income n for provi
amount nts comprehen other Profit
Others amount
for increased recognized under impairm sion
decreased sive equity declared for
equity method ent for
impairme income distribution impai
nt rment
I. joint venture
Ningbo
Zhenhai
Refining and
Chemical 216166978.49 155672000.00 -13194048.59 358644929.90
Xinhecheng
Biotechnology
Co. Ltd
Subtotal 216166978.49 155672000.00 -13194048.59 358644929.90
II. Associates
Zhejiang
Chunhui
Environmental 281395724.54 46816896.41 25920000.00 129785.45 302422406.40
Protection
Energy Co.Ltd.Zhejiang Sanbo
Polymer Co.Ltd
Anhui Yingna
Weixun 4594602.27 417459.30 5012061.57
Technology
Co. Ltd
Subtotal 285990326.81 47234355.71 25920000.00 129785.45 307434467.97
Total 502157305.30 155672000.00 34040307.12 25920000.00 129785.45 666079397.87
2012024 Annual Report of Zhejiang NHU Co. Ltd.
The recoverable amount is determined as the net of fair value less costs of disposal
□Applicable □Not applicable
Recoverable amount is determined as the present value of the expected future cash flows
□Applicable □Not applicable
4. Operating revenue/Operating cost
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Revenue Cost Revenue Cost
Main operations 4395233030.30 3384769776.39 2746466236.75 2473248472.64
Other operations 48752637.47 37822133.10 54507807.05 43301577.63
Total 4443985667.77 3422591909.49 2800974043.80 2516550050.27
Including: Revenue
from contracts with 4440981266.26 3421227216.06 2797508880.19 2515058317.60
customers
Details of revenue
Unit: RMB Yuan
合同分类 Revenue Cost
By product
Including:
Nutrition 4426394756.93 3415402555.01
Others 14586509.33 5824661.05
Subtotal 4440981266.26 3421227216.06
By operating region
Including:
Domestic 2554092706.82 2006360993.14
Overseas 1886888559.44 1414866222.92
Subtotal 4440981266.26 3421227216.06
By revenue recognition time
Including:
Transferred at a point in time 4440981266.26 3421227216.06
Subtotal 4440981266.26 3421227216.06
Information related to transaction price allocated to the remaining performance obligations:
As of December 31 2024 revenue corresponding to performance obligations for which the Company has entered into contracts but
not yet performed or fulfilled amounted to 791.89 million yuan of which 791.89 million yuan is expected to be recognized as
revenue in 2025.
2022024 Annual Report of Zhejiang NHU Co. Ltd.
5. R&D expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 139541459.29 137202860.17
Outsourcing expenses 26652714.85 28647554.99
Depreciation amortization of intangible assets 24841809.99 44232422.63
Direct input 23030174.05 27154541.33
Office expenses business traveling expenses 4377704.22 5717143.51
Others 6097626.64 6215215.00
Total 224541489.04 249169737.63
6. Investment income
Unit: RMB Yuan
Items Current period cumulative Preceding period comparative
Investment income from long-term
2050000000.001390000000.00
equity investments under cost method
Investment income from long-term
34040307.1224434009.92
equity investments under equity method
Investment income from disposal of
28770508.00
long-term equity investments
Investment income from disposal of
41.56
financial assets held for trading
Dividend income earned on investments
in other equity instruments during the 24473000.00
holding period
Interest income from call loans 61948639.60 108635176.65
Interest on discounted bills -186142.03
Investment income from bank financial
2735849.06
products and structured deposits
Investment income from debt
-709851.71
restructuring
Total 2174759454.72 1549382083.45
XIX. Supplementary information
1. Schedule of non-recurring profit or loss
√ Applicable □ Not applicable
Unit: RMB Yuan
Items Amount Remarks
Gains or losses on disposal of non-
current assets including write-off of 19289871.70
provision for impairment
Government grants included in profit or
loss (excluding those closely related to
71547646.34
operating activities of the Company
2032024 Annual Report of Zhejiang NHU Co. Ltd.
Items Amount Remarks
satisfying government policies and
regulations and continuously enjoyed
with certain quantity or quota based on
certain standards)
Gains or losses on changes in fair value
of held-for-trading financial assets and
held-for-trading financial liabilities and
investment income from disposal of
-36923997.96
held-for-trading financial assets and
held-for-trading financial liabilities
excluding those arising from hedging
business related to operating activities
Gains and losses on entrusted
808128.72
investments or management of assets
Other non-operating revenue or
654343.78
expenditures
Less: Enterprise income tax affected 8827724.99
Non-controlling interest affected
6940773.30
(after tax)
Total 39607494.29 --
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 Criteria forPublic Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss
√Applicable □ Not applicable
2. ROE and EPS
EPS (yuan/share)
Profit of the reporting period Weighted average ROE (%)
Basic EPS Diluted EPS
Net profit attributable to
shareholders of ordinary 21.78% 1.91 1.91
shares
Net profit attributable to
shareholders of ordinary
21.63%1.901.90
shares after deducting non-
recurring profit or loss
3. Calculation process for weighted average return on net assets
Unit: RMB Yuan
Current period
Items Serial number
cumulative
Net profit attributable to shareholders of listed company A 5868545988.62
Non-recurring profit or loss B 39607494.29
2042024 Annual Report of Zhejiang NHU Co. Ltd.
Current period
Items Serial number
cumulative
Net profit attributable to shareholders of listed company after
C=A-B 5828938494.33
deducting non-recurring profit or loss
Opening net assets attributable to the Company's ordinary
D 24804662320.99
shareholders
Net assets attributable to the Company's common shareholders
added by the issuance of new shares or conversion of debt to shares E
etc.Cumulative number of months from the month following the
F
addition of net assets to the end of the reporting period
Decrease in net assets attributable to the Company's common
G 1383039756.00
shareholders as a result of repurchases or cash dividends etc.Cumulative number of months from the month following the month
H
in which net assets were reduced to the end of the reporting period
Foreign currency translation differences I1 -12407389.35
Accumulated months from the month following equity
J1 6
change to reporting date
Special reserves I2 45488046.15
Cumulative number of months from the month
following the month of increase or decrease in net J2 6
assets to the end of the reporting period
Impact from minority shareholders' capital
I3 1606336.41
contributions
Cumulative number of months from the month other
following the month of increase or decrease in net J3 7
assets to the end of the reporting period
Other capital surplus changes (Type 1) I4 129785.45
Cumulative number of months from the month
following the month of increase or decrease in net J4 6
assets to the end of the reporting period
Other capital surplus changes (Type 2) I5 12396.68
Cumulative number of months from the month
following the month of increase or decrease in net J5 6
assets to the end of the reporting period
Number of months in the reporting period K 12
L= D+A/2+ E×F/K-
Weighted average net assets
26949710573.34 G×H/K±I×J/K
Weighted average ROE M=A/L 21.78%
Weighted average ROE after extraordinary gains and losses N=C/L 21.63%
4. Calculation process of basic earnings per share and diluted earnings per share
(1) Basic earnings per share calculation process
Unit: RMB Yuan
Current period
Items Serial number
cumulative
Net profit attributable to shareholders of listed company A 5868545988.62
Non-recurring profit or loss B 39607494.29
Net profit attributable to shareholders of listed company after
C=A-B 5828938494.33
deducting non-recurring profit or loss
Total number of shares at the beginning of the period D 3073421680.00
Increase in number of shares due to capitalization of provident
E
fund or distribution of stock dividends etc.
2052024 Annual Report of Zhejiang NHU Co. Ltd.
Current period
Items Serial number
cumulative
Increase in the number of shares by issuing new shares or
F
converting debt to equity etc.Cumulative number of months from the month following the
G
increase in shares to the end of the reporting period
Reduction in the number of shares due to buybacks etc. H
Cumulative number of months from the month following the
I
reduction of shares to the end of the reporting period
Number of drawdowns during the reporting period J
Number of months in the reporting period K 12
Weighted average number of ordinary shares outstanding L=D+E+F×G/K-H×I/K-J 3073421680.00
Basic EPS M=A/L 1.91
Basic EPS after extraordinary gains and losses N=C/L 1.90
(2) Calculation of diluted earnings per share
The process of calculating diluted earnings per share is the same as that for basic earnings per share.
5. Differences in Accounting Data Between Domestic and International Standards
(1) Differences in Net Profit and Net Assets Under IFRS and Chinese Accounting Standards (CAS)
□Applicable □ Not Applicable
(2) Differences in Net Profit and Net Assets Under Overseas Accounting Standards and CAS
□Applicable □ Not Applicable
(3) Explanation of Differences Between Domestic and International Accounting Standards(If the overseas-
audited data has been reconciled the name of the overseas auditing firm shall be specified)
□Applicable □ Not Applicable
206
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