Guangdong Haid Group Co. Ltd.2025 Annual ReportSection 1 Important Tips Table of Contents and Interpretation

The board of directors directors and senior management of the company

guarantee that the contents of the annual report are true accurate and complete

and there are no false records misleading statements or major omissions and

bear individual and joint legal liabilities.Xue Hua the person in charge of the company Yang Shaolin the person in

charge of accounting work and Yang Shaolin the person in charge of the

accounting organization (accounting officer) hereby confirm that the financial

report in this annual report is true accurate and complete.All directors attended the board meeting at which the report was considered.Forward-looking statements such as the company's future plans covered in

this report do not constitute a material commitment of the company to any

investors and related parties. Investors are advised to be aware of investment risks.

1. The risk of abnormal weather affecting the periodic fluctuations of the

feed industry

The feed industry mainly serves the downstream aquaculture industry.When natural factors such as high temperature extreme cold rain typhoon and

other natural factors change abnormally during the breeding process there may

be large fluctuations in the nu

mber of breeding stocks and storage ponds and even large-scale outbreaks

of diseases which will affect the demand for feed and there will be a risk of

1phased or regional demand fluctuations. For example continuous rainfall will

reduce the dissolved oxygen saturation of the water body deteriorate the water

quality affect the feeding of aquatic animals cause farmers to passively reduce

feeding and some aquatic products will not adapt to the drastic changes in the

environment and even die which will affect the short-term aquatic feed demand;

Floods caused by heavy rainfall in the region in the short term will lead to the loss

of aquatic products and livestock and poultry breeding which will affect the

normal feed demand. After floods animal epidemics are prone to occur and occur

frequently which will also adversely affect the production and operation of feed

enterprises.Risk response measures: (1) The company is currently deploying factories

and developing local markets in major breeding regions such as South China

Central China East China and North China as well as overseas markets such as

Southeast Asia Latin America and Africa. The expansion of the regional layout

can effectively deal with the risks of abnormal weather and natural disasters in

local areas; (2) Continuously improve the service ability of farmers through the

joint empowerment of feed seedlings and animal protection provide scientific

breeding plans and provide corresponding guidance from the company's

technical personnel to improve farmers' anti-risk ability and breeding

competitiveness and reduce the adverse effects caused by abnormal weather

influences.

22. Risks brought by breeding diseases to the company's production and

operation

With environmental changes and the development of large-scale breeding

animal diseases will also occur from time to time. For example the "African swine

fever virus" that began to break out nationwide in August 2018 and the diseases

such as "blue-ear virus" in pigs "EMS disease" in shrimp farming and "H7N9

virus" in poultry have appeared in recent years. The occurrence of diseases will

lead to a reduction in the production and stock of farmed animals which will

directly inhibit the scale of breeding and reduce the demand for feed in the short

term; The prevalence of major animal diseases can also easily affect consumer

psychology leading to shrinking terminal demand causing the aquaculture

industry to fall into a staged downturn affecting feed demand. At the same time

the outbreak of regional epidemics will bring about major adjustments in the

breeding structure and stock in some areas which will affect the demand for feed

in the region.Risk response measures: (1) The company's feed varieties cover livestock

and poultry feeds such as pig feed chicken feed and duck and goose feed and

aquatic feeds such as fish feed and shrimp feed. The variety is complete and the

structure is balanced which can effectively deal with the disease risk of a single

breeding species. At the same time the company is currently deploying factories

and developing local markets in major domestic breeding regions and overseas

markets such as Southeast Asia Latin America and Africa. The expansion of the

3regional layout can effectively deal with the risk of epidemic outbreaks in local

areas; (2) The company has established a strict disease prevention and control

system in the production process of feed products and at the same time it uses its

technical advantages and professional capabilities to implement the prevention

and control of breeding diseases from the source.

3. The risk of major raw materials price fluctuations

The feed ingredients are mainly various bulk agricultural products mainly

corn and soybeans (soybean meal). In recent years the domestic and international

agricultural product markets have been closely linked. Climate change changes

in planting area and harvest changes in purchasing storage and subsidy policies

changes in import and export policies political games in various countries

international trade relations shipping conditions and other logistics capacity and

cost fluctuations and exchange rate changes in major grain-producing countries

may bring large fluctuations in agricultural product prices which in turn will

have a certain impact on feed and breeding costs. With the strengthening of the

internationalization of agricultural product trade the factors of agricultural

product price change are becoming more and more complex and the price

fluctuation is also intensified. If the company fails to grasp the changes in the feed

raw material market in a timely manner and do a good job in the strategic

management and risk control of procurement in a timely manner it may face the

risk of rising comprehensive procurement costs.

4Risk response measures: (1) The company divides raw material varieties and

implements a combination of centralized procurement of bulk varieties and local

procurement of regional varieties which not only ensures the advantages of large-

scale procurement of bulk raw materials but also strives to obtain the localized

advantages of rapid response to regional procurement; (2) The company

continues to invest in the construction of the raw material procurement research

system. The professional raw material information research department team is

relatively mature. It conducts strategic procurement through real-time tracking

research and judgment of the market trend of domestic and foreign bulk raw

materials and conducts position risk management on bulk raw materials through

tools such as futures hedging and raw material trading which can effectively

control procurement risks; (3) The company has a relatively rich accumulation of

research and development of animal nutrition and feed formula technology. It has

a large R&D team and invests a lot of money in research and development every

year. It focuses on animal nutrition requirements feed formula technology breed

breeding and excellent germplasm breeding healthy breeding mode and other

research directions. It has a deep understanding of animal nutrition requirements

and a relatively high technical level of comprehensive utilization of raw materials.Therefore when the price of raw materials fluctuates It can control reasonable

feed nutrition level and formula cost by quickly adjusting the formula.

4. Risks of environmental protection laws and policies on the scale structure

and regional adjustment of the aquaculture industry

5In recent years the state has introduced a series of environmental protection

regulations such as the new Environmental Protection Law the Regulations on

Pollution Prevention and Control of Large-scale Livestock and Poultry Breeding

the Action Plan for Water Pollution Prevention and Control and the Guiding

Opinions on Promoting the Adjustment and Optimization of Pig Breeding Layout

in Southern Water Network Areas. According to the regulations and policies of

the central government no-breeding zones and restricted-breeding zones have

been set up all over the country. The implementation of the environmental

protection policy will not only further accelerate the withdrawal of retail pig

farmers reduce the unqualified environmental protection and small-scale

backward production capacity continue to expand the production capacity of

large-scale farmers and continuously improve the scale and structure of breeding;

in addition the establishment of no-breeding areas and restricted-breeding areas

will also adjust the production capacity of pig breeding in various regions and

across the country. The scale structure of breeding and the regional adjustment

of production capacity will definitely have a profound impact on the existing

production capacity layout market share pricing power and business model of

the feed industry. The impact of environmental protection policies on the pig

breeding and feed industries has put the existing dominant companies in the

market at risk of reshuffling.Risk response measures: (1) The company continues to improve its service

capabilities for farmers. In addition to feed products it has a layout in the

6industrial chain of animal protection vaccines finance etc. which is highly sticky

to large-scale farmers; (2) The company's feed varieties cover livestock and

aquatic products and the product line is rich and the production lines of pig feed

chicken feed duck feed and pellet fish feed can be used universally. By adjusting

the production capacity in various places the company can quickly switch the

production capacity layout and adjust the industry change; (3) The company

adopts various models to accelerate the production capacity layout in areas with

abundant resources and strong environmental carrying capacity and seize the

market share of new breeding areas; (4) The company continues to increase R&D

investment and the research results in key technologies of microbial fermented

feed key technologies of feed antibiotic substitutes and key technologies of

functional health feed have been effectively applied leading the progress and

development of the industry.

5. The risk of exchange rate fluctuations

The global procurement of feed raw materials has become the norm and the

company's overseas investment and overseas business scale are also rapidly

expanding. The scale of cross-border fund settlement and overseas asset stock

have increased significantly. It involves the currency types of many relevant

countries and the exchange rate fluctuation factors of each currency are different

and the exchange rate fluctuation of any currency may have a certain impact on

the business settlement cost and asset stock value in the region.

7Risk response measures: (1) According to the business scale business model

and settlement characteristics of each region and country the company carefully

selects the settlement currency based on the principle of strict control of exchange

rate risk and strives to achieve a relatively balanced regional capital inflow and

outflow through the structural arrangement of financing sources and financing

varieties and control exchange rate risk; (2) The expansion of two-way

fluctuations in the RMB exchange rate has become the new normal. The company

further enhances its awareness of foreign exchange risk management arranges

settlement models according to procurement and sales strategies and the cyclical

characteristics of import and export business and flexibly uses financial

instruments such as forward foreign exchange settlement and sales swaps and

foreign exchange options to lock in exchange rate risks control procurement and

sales costs and control risks that may arise from exchange rate fluctuations.The profit distribution plan approved by the board of directors of the

company is: based on the total share capital of the repurchased shares deducted

from the share registration date when the distribution plan is implemented in the

future a cash dividend of 11 yuan (including tax) will be distributed to all

shareholders for every 10 shares and 0 bonus shares (including tax) will be

distributed and the common reserve fund will not be converted into share capital.Any discrepancy between the mantissa of the total and the mantissa of the

listed values in this report is due to rounding.

8Content

Section 1 Important Tips Table of Contents and Int... 1

Section 2 Company Profile and Main Financial Indic.. 12

Section 3 Management Discussion and Analysis ....... 17

Section 4 Corporate Governance Environment and Soc.. 51

Section 5 Important Matters ........................ 89

Section 6 Changes in Shares and Shareholders ...... 119

Section 7 Bond Related Information ................ 128

Section 8 Financial Report ........................ 129

9Reference file directory

(1) Financial statements with the signatures and seals of the person in charge of

the company the person in charge of accounting work and the person in charge of

the accounting organization (accounting officer).

(2) The original audit report with the seal of the accounting firm and the signature

and seal of the certified public accountant.

(3) The originals of all company documents and announcements that have been

publicly disclosed during the reporting period.

(4) Annual reports published in other securities markets.

10Paraphrase

Paraphrase Depend on Paraphrase content

The company the company the group

the Haid Group Depend on Guangdong Haid Group Co. Ltd.Haid Holdings Depend on Haid International Holdings Limited

Board of directors Depend on Guangdong Haid Group Co. Ltd. Board of Directors

Shareholders' meeting Depend on Guangdong Haid Group Co. Ltd. Shareholders' Meeting

The Companies Act Depend on "Company Law of the People's Republic of China"

Securities Act Depend on "Securities Law of the People's Republic of China"

Articles of Association Depend on "Articles of Association of Guangdong Haid Group Co. Ltd."

Yuan Depend on RMB Yuan

Reporting period current period current

year Depend on January 1 2025 to December 31 2025

Last year same period last year Depend on January 1 2024 to December 31 2024

End of period Depend on December 31 2025

Beginning beginning of the year Depend on January 1 2025

China Securities Regulatory Commission Depend on China Securities Regulatory Commission

11Section 2 Company Profile and Main Financial Indicators

I. Company information

Stock abbreviation Haid Group Stock code 002311

Stock abbreviation before the change

(if any) No

Stock exchange Shenzhen Stock Exchange

Chinese name of the company Guangdong Haid Group Co. Ltd.Chinese abbreviation of the company Haid Group

Foreign name of the company (if any) Guangdong Haid Group Co. Limited

Abbreviation of the company's foreign

name (if any) HAID GROUP

Legal representative of the company Xue Hua

Registered address 701 Block 2 No. 42 Wanbo Fourth Road Nancun Town Panyu District Guangzhou City Guangdong Province

Postal code of registered address 511445

Historical changes of the company's

registered address There was no change of registered address during the reporting period

Office address Building 1 Haida Science Park No. 8 Longtai Street Hualong Town Panyu District Guangzhou City Guangdong Province

Postal code of office address 511434

Company URL www.haid.com.cn

E-mail zqbgs@haid.com.cn

II. Contact person and contact information

Board secretary Securities Affairs Representative

Name Huang Zhijian Yang Huafang Li Tanhang

Building 1 Haida Science Park No. 8 Building 1 Haida Science Park No. 8

Contact address Longtai Street Hualong Town Panyu Longtai Street Hualong Town Panyu District Guangzhou City Guangdong District Guangzhou City Guangdong

Province Province

Telephone 8620-39388960 8620-39388960

Fax 8620-39388958 8620-39388958

E-mail zqbgs@haid.com.cn zqbgs@haid.com.cn

III. Information Disclosure and Preparation Location

The stock exchange website where the company discloses its

annual report Shenzhen Stock Exchange http://www.szse.cn

The name and website of the media where the company "Securities Times" "China Securities Journal" "Securities

discloses its annual report Daily" "Shanghai Securities News" and www.cninfo.com.cn

Where the company's annual report is prepared Corporate Securities and Investment Center

12IV. Registration Changes

Unified Social Credit Code No change

Changes in the company's main business since its listing (if

any) No change

Changes in previous controlling shareholders (if any) No change

V. Other relevant information

Accounting firm hired by the company

Accounting firm name Grant Thornton Zhitong Certified Public Accountants LLP

Office address of accounting firm Floor 5 Scitech Plaza No. 22 Jianguomenwai Street Chaoyang District Beijing

Name of Signing Accountant Li Xujia Qiu Shuntong

Sponsor institutions engaged by the company to perform continuous supervision duties during the

reporting period

□Applicable □Not Applicable

Financial consultants hired by the company to perform continuous supervision duties during the

reporting period

□ Applicable □Not Applicable

VI. Key Accounting Data and Financial Indicators

Whether the company needs to retrospectively adjust or restate the accounting data of previous

years

□ Yes □No

Increase or decrease

2025 2024 this year over the 2023

previous year

Operating income (yuan) 128468230914.96 114601056662.29 12.10% 116117168742.97

Net profit attributable to

shareholders of listed 4280330734.08 4503995518.39 -4.97% 2741256374.98

companies (yuan)

Net profit attributable to

shareholders of the listed

company after deducting 4279400457.60 4539064747.56 -5.72% 2541491959.42

non-recurring gains and

losses (yuan)

Net cash flow from

operating activities (yuan) 6260377323.22 7996255375.05 -21.71% 12698374699.54

13Basic earnings per share

(yuan/share) 2.58 2.71 -4.80% 1.66

Diluted earnings per share

(yuan/share) 2.57 2.70 -4.81% 1.66

Weighted average return

on equity 17.42% 20.88% -3.46% 14.53%

Increase or decrease

End of 2025 End of 2024 at the end of this year compared to the end End of 2023

of the previous year

Total assets (yuan) 47590711885.11 48140586659.70 -1.14% 44746735775.61

Net assets attributable to

shareholders of listed 24248840877.02 23905302719.55 1.44% 19647107064.19

companies (yuan)

The lower of the company's net profit before and after deducting non-recurring gains and losses in

the last three fiscal years is negative and the audit report of the most recent year shows that the

company's ability to continue operations is uncertain

□ Yes □No

During the reporting period the company's total audited profit net profit and net profit after

deducting non-recurring gains and losses whichever is lower is negative

□ Yes □No

VII. Differences in accounting data under domestic and foreign accounting standards

1. Differences in net profit and net assets in financial reports disclosed in accordance with

international accounting standards and Chinese accounting standards at the same time

□ Applicable □Not Applicable

During the reporting period there was no difference in net profit and net assets in the financial

reports disclosed in accordance with international accounting standards and in accordance with

Chinese accounting standards.

2. Differences in net profit and net assets in financial reports disclosed in accordance with

overseas accounting standards and Chinese accounting standards at the same time

□ Applicable □Not Applicable

During the reporting period there was no difference in net profit and net assets in the financial

14reports disclosed in accordance with overseas accounting standards and in accordance with Chinese

accounting standards.VIII. Main financial indicators by quarter

Unit: Yuan

First quarter Second quarter Third quarter Fourth quarter

Operating income 25628943274.11 33201951864.77 37263255284.21 32374080491.87

Net profit attributable

to shareholders of 1282349455.39 1356191468.82 1503886685.05 137903124.82

listed companies

Net profit attributable

to shareholders of the

listed company after

deducting non- 1280674503.11 1373567608.71 1522907946.68 102250399.10

recurring gains and

losses

Net cash flow from

operating activities -2249832645.97 5297922728.51 1969342736.63 1242944504.05

Whether the above financial indicators or their total numbers are materially different from the

relevant financial indicators of the company's disclosed quarterly reports and semi-annual reports

□ Yes □No

IX. Items and amounts of non-recurring gains and losses

□Applicable □ Not applicable

Unit: Yuan

Projects 2025 Amount 2024 Amount 2023 Amount Description

Gains and losses on disposal of illiquid assets

(including the write-off portion of the -36158599.44 -59464676.78 9004677.06

provision for asset impairment)

Government subsidies included in the current

profit and loss (except for government

subsidies that are closely related to the

company's normal business operations

comply with national policies and regulations 70422837.99 88405109.35 59119428.77

are enjoyed according to determined

standards and have a continuous impact on

the company's profit and loss)

In addition to the effective hedging business

related to the company's normal business

operations the gains and losses from changes

in fair value arising from the holding of

financial assets and financial liabilities by -126235785.00 -58602433.58 147165591.84

non-financial enterprises and the gains and

losses arising from the disposal of financial

assets and financial liabilities

Gains and losses from external entrusted loans 326833.38

Reversal of provision for impairment of 49219466.84 34087704.91 14802077.94

15receivables that have been separately tested

for impairment

Other non-operating revenue and expenditure

other than the above-mentioned items 2661719.15 -3065353.75 -8642137.95

Less: Income tax impact amount -43336092.77 19665499.65 9966547.74

Amount of impact on minority

shareholders’ equity (after tax) 2315455.83 16764079.67 12045507.74

Total 930276.48 -35069229.17 199764415.56 --

Details of other profit and loss items that meet the definition of non-recurring profit and loss:

□ Applicable □Not Applicable

The company does not have other specific circumstances of profit and loss items that meet the

definition of non-recurring profit and loss.Explanation of the situation of defining the non-recurring profit and loss items listed in the

"Explanatory Announcement No. 1 on Information Disclosure of Companies Offering Securities to

the Public — Non-recurring Profit and Loss" as recurring profit and loss items

□ Applicable □Not Applicable

The company does not define the non-recurring gains and losses listed in the "Explanatory

Announcement No. 1 on Information Disclosure of Companies Offering Securities to the Public —

Non-recurring Gains and Losses" as recurring gains and losses.

16Section 3 Management Discussion and Analysis

I. The main business of the company during the reporting period

The company's industrial chain business layout is based on providing overall solutions for

animal breeding. The main products include feed high-quality animal seedlings animal protection

live pigs aquatic products etc. The business operation has covered all business links such as research

and development design production sales and service of various products. Specifically the

company's products include animal feed such as chickens ducks geese pigs fish shrimp and crabs

ruminants live pigs shrimp fish and other farmed species shrimp fry fish fry and other seedling

species livestock and poultry water-produced fresh products and prepared dishes as well as

biological products veterinary drugs vaccines and other animal protection products required in the

process of livestock and aquaculture.

(1) Synergized feed seedlings and animal health solutions create value for farmers

Feed seedlings and animal protection are the company's core business and its operating income

accounts for more than 80% of the company. After more than 20 years of development the feed

business has accumulated a wide range of customer resources. By providing customers with high-

quality animal seedlings cost-effective and strong feed products in the market and relying on the

breeding technology service system to drive the development of animal protection products such as

vaccines veterinary drugs and biological products the complete set of breeding solutions can help

customers succeed in breeding. While achieving healthy breeding customers can control breeding

costs and gain competitive advantages in terminal products.

(2) On the basis of specialization the breeding business realizes a light-asset low-risk breeding

model

On the basis of the high-quality development of feed seedlings and animal protection business

the company conducts model exploration in the breeding link. In terms of livestock and poultry

breeding the company is currently mainly engaged in pig breeding with continuous improvement in

breeding professional capabilities continuous optimization of breeding costs and controllable risks.In aquaculture the company uses its own high-quality seedlings feed and animal protection products

to focus on the factory farming of shrimp which the company has overall advantages. In the breeding

17business the company controls the scale of breeding builds teams reduces costs improves the

system and is building core competitiveness.

2. Main business model

(1) Business Models for Feed Breeding and Animal Health Segments

The company's feed business is the company's core business. The operation management mainly

adopts the business model of centralized procurement of raw materials distribution of production

sales of products and technical services. 1) For bulk raw materials such as agricultural products the

centralized procurement model of "group + regional center" combined with hedging can obtain better

procurement advantages and risk control; 2) The production link aims to be closest to the market

convenient in logistics and rich in resources and carry out multi-site production in the breeding area.At present the factories are mainly distributed in more than 200 cities in Asia Africa and Latin

America; 3) The company focuses on localized service marketing and fully establishes distribution

channels to efficiently solve the capital and transportation needs of farmers. At the same time the

company directly goes deep into farmers to provide breeding technical services by setting up technical

and service teams in breeding areas forming sales and services channels and functions of farmers.Complementary and synergistic; 4) High-quality animal seedlings biological products veterinary

drugs and vaccines have become indispensable products and tools in the process of providing

breeding technical services for the company and constitute a package of overall breeding solutions.

(2) Operating Model of the Farming Business

The company's pig breeding business basically adopts the "company + family farm" model.The "company + family farm" model means that the company provides family farmers with

seedlings feed vaccines and other necessary products for breeding. After the main technical

requirements of the breeding process are agreed the family farmers complete the breeding process

and the company recycles the finished products for external sales. The company's aquatic product

breeding and processing business is still in its infancy. The main species of aquatic product

breeding is prawns. With the company's high-quality seedlings feed animal protection and

technical advantages standardized and factory farming is carried out.

18II. Industry situation of the company during the reporting period

Based on the insight and layout of the global feed industry the company is driven by scientific

research and development and technical services operates efficiently focuses on customer needs

seizes opportunities at different stages of industrial development in various regions and transforms

R&D investment industrialization and scale advantages into high-quality growth momentum; the

company's total feed sales volume achieved a record-high in 2025.China as the largest region in the global feed industry is also the fastest growing region in the

world in the past three decades. In 2025 the total feed output has exceeded 340 million tons an

increase of 8.6% year-on-year and its scale ranks first in the world. The feed preparation technology

and the development of upstream and downstream industries are also world-leading. At present the

competition in China's feed industry has shifted from the single-dimensional competition of feed

products to the multi-dimensional comprehensive competition of seedlings animal protection feed

and breeding technical services and high-quality development has become the core main line of the

industry to break through. Industry integration continues to accelerate. Leading companies have

occupied a leading position in the market by virtue of their scale advantages procurement advantages

raw material substitution and formula innovation technologies. However small and medium-sized

enterprises lacking core competitiveness are affected by raw material price fluctuations and the

mismatch of downstream aquaculture product price cycles. The operating pressure continues to

increase and the living space is constantly being squeezed. The solidification of the downstream

aquaculture structure has further intensified the situation of stock competition. Free-range farmers

continue to withdraw from the market. Moderately large-scale family farms and breeding companies

have become the main force of breeding. Their requirements for the quality of feed products

customization level and supporting services have been significantly improved. The focus of

competition in the stock market has fully shifted to value enhancement and efficiency optimization.Asia (excluding East Asia) is the fastest growing sub-region. Feed production in 2025 is about

170 million tons and the compound growth rate from 2026 to 2030 is expected to be about 4.9%.

The region's population is growing rapidly the urbanization rate continues to increase and the per

capita disposable income is steadily increasing. According to the OECD-FAO Agricultural Outlook

2021-2030 from 2018 to 2020 animal protein will account for only 13% of the total protein supply

19in Southeast Asia which is far lower than the average level in China and the world. The supply of

animal protein in Southeast Asia will continue to grow thereby expanding the feed market capacity.Relying on the vast market space huge consumer population abundant breeding resources and

continuously improving economic development potential this area has become a key layout area for

global high-quality feed companies bringing together local multinational feed companies in

Southeast Asia and well-known European and American manufacturers. Due to the relatively low

overall economic strength and industrialization level of various countries the unstable supply of raw

materials the weak overall competitiveness of local small-scale feed manufacturers and the lack of

room for large-scale development the industry is currently mainly competition among multinational

companies still focusing on the product strength of feed products themselves and relying on product

quality to gain a competitive advantage.The African region also maintained a strong growth trend. The feed output in 2025 has exceeded

60 million tons and the compound annual growth rate from 2026 to 2030 is expected to be about

4.1%. As the region with the fastest population growth in the world Africa has an annual population

growth rate of over 2.5% but its per capita consumption of animal protein is less than one-third of

the global average. In some regions the per capita supply of animal protein has even declined slightly

due to rapid population growth. The contradiction between protein supply and demand is very

prominent. This imbalance between supply and demand urgently needs to improve breeding

efficiency and increase animal protein supply through the development of feed industry. In addition

Africa's vast arable land resources provide a large amount of feed raw materials and the feed industry

has broad development space in this region.The Latin American region also showed a solid growth trend. The total feed production in 2025

will reach 210 million tons and the compound annual growth rate from 2026 to 2030 is expected to

be about 3.9%. Latin America has unique natural advantages: abundant feed ingredients provide

sufficient raw material supply for feed enterprises; rich water resources rapid growth of aquaculture

industry; superior geographical location close to developed countries in Europe and America

convenient for meat protein export. There are many feed manufacturers in the region mainly

European and American feed companies and local companies. Sufficient and relatively cheap raw

materials ensure the cost advantage of animal breeding in the region. If feed upgrades and innovations

product supporting services and breeding model upgrades can be achieved the breeding efficiency

20and advantages will be greatly improved and the feed efficiency will have a large room for

improvement.The growth rate of other regions such as North America and Europe is relatively flat. It is

estimated that the compound annual growth rate from 2026 to 2030 will be less than 2%. The overall

development characteristics are optimized. The profitability of feed in these regions is relatively

stable but the technology and industry are relatively solidified and the innovation is insufficient.There is still a large room for improvement in technical services operational efficiency and cost

control. North America is the second largest feed production region in the world with a total feed

output of about 290 million tons in 2025. The United States accounts for most of the production in

this region. It is also the second largest feed producer in the world with a high degree of vertical

integration. The total feed output in Europe in 2025 is about 270 million tons showing a trend of

regional differentiation. Among them Russia and Spain are among the top ten feed producers in the

world with feed output exceeding 30 million tons.Company Operation Overview

2025 marks the beginning of the company's management structure reform with a focus on

specialisation and refined management. In the face of rapid changes in the industry mainly customers

the company starts from customer needs and builds specialized product divisions at the group level:

shrimp special general water pig industry and poultry industry divisions. From the original

independent operations between subsidiaries and the business links of seedling-material-medicine to

the coordinated operation of product lines and industrial chains within the group; from the original

extensive management (the group only vertically manages finance procurement and technology) to

refined management (including the technical service content breeding solutions precise product

positioning product development and operation cycle refined production process management team

assessment management etc.) of each product line managed by the group; The core capabilities that

were originally scattered in various regions centers subsidiaries and business links were moved to

the shared center at the group level and the process was solidified and promoted.The company has established the operation requirements of "standardization scale

intensification specialization and platformization". Among them standardization and

standardization of operation process and product quality large-scale amplification of resource

aggregation efficiency intensive reduction of operating costs specialization to strengthen technology

21R&D and service capabilities and platformization to achieve resource integration and business lines

are synergistically linked. After the initial adjustment and operation of the management structure in

2025 the company's various businesses have been implemented with high quality:

1. The feed business at home and abroad is growing rapidly and the globalization strategy

has entered a new stage

The company takes product leadership operational excellence and customer intimacy as the

core strategy to drive global development and drive the company's high-quality growth. It always

adheres to customer-centricity. Based on the professional ability of investing in R&D and excellent

products the company provides customers with a "seedling-material-medicine" overall technical

service plan through the establishment of a process-driven efficient organization and the formation

of leading product capabilities and service capabilities creating excess value and empowering

customers for long-term development.During the reporting period the company achieved a sales volume of 32.08 million tons of feed

(including approximately 2.22 million tons of internal aquaculture consumption) a year-on-year

increase of approximately 21%. Among them the external sales volume was 29.86 million tons and

the absolute value of the external sales volume greatly exceeded the full-year target for 2025. The

market share continued to increase and the global leading position was further consolidated. In terms

of varieties (including domestic and overseas markets): 14.7 million tons of poultry feed an increase

of about 16% year-on-year; 7.7 million tons of pig feed an increase of about 37% year-on-year; 6.96

million tons of aquatic feed an increase of about 19% year-on-year; and 500000 tons of ruminant

feed and other categories.Domestic feed business

In the face of the fierce industry competition environment brought about by the large production

capacity of the domestic breeding and feed industry and the changes in consumer demand the

company timely adjusted the group management structure improved team specialization product

standardization and process efficiency effectively drove the growth of feed sales enlarged the scale

advantage and continuously improved the internal operation efficiency and built the basic operation

advantage with higher capacity utilization rate and lower cost and further built the core competitive

advantage of product leadership and customer intimacy on this basis.

22In 2025 the domestic feed export sales volume was 26.4 million tons a year-on-year increase

of about 20% far exceeding the industry growth rate. It is one of the few leading enterprises that can

maintain stable growth. Poultry feed increased by 14% year-on-year. The company closely follows

the needs and pain points of breeding strengthens product competitiveness through unified standards

and synergy of resources; at the same time it builds core benchmark factories with high operating

efficiency and good cost control (such as laying hen feed and laying duck feed factories) and builds

differentiated competitive advantages in products operations and services so as to meet the

diversified product needs of food enterprises and market terminals enhance the overall value of

breeding varieties empower the development of the industry and steadily expand market share. Pig

feed increased by 37% year-on-year and the company actively followed the trend of the breeding

industry: First optimize the customer structure focus on high-quality products team transformation

and professional service system and focus on developing pig family farms and large-scale farms with

breeding advantages and strong vitality and consolidate the development foundation in the next few

years; The second is to actively develop professional pig breeding group customers and provide them

with various services from raw material procurement formulation technology feed production

quality monitoring to disease prevention and treatment. The overall output is the comprehensive

service system of its managed feed factory. During the reporting period the feed sales of such

customers increased significantly; aquatic feed increased by 12% year-on-year. General water feed

special water fish feed shrimp and crab feed all achieved good year-on-year growth. According to

the breeding trends breeding models and changes in customer needs of different species the company

accurately matched products and invested resources. The sales of tilapia feed carp feed California

perch feed and prawn feed increased year-on-year. The company builds an overall solution for

seedlings materials medicines and breeding management guidance around the needs of farmers

creates value for farmers and forms multiple core competitiveness in its own industrial chain. At

present this model has achieved initial results in vannamei white shrimp and has gradually appeared

in tilapia and carp and will gradually be extended to other aquatic products.Overseas feed business

Relying on the foundation of competitive advantages in technology service and procurement

the company continued to increase its overseas layout accelerated the construction and expansion of

feed production capacity in Southeast Asia Africa and Latin America and strengthened the

23supporting layout of seedlings and animal protection to match the future competition needs of

customers and the market in advance. The company's overseas feed sales volume and profitability

have grown rapidly.In 2025 the sales volume of feed in overseas regions was 3.46 million tons a year-on-year

increase of about 47% and the sales volume of aquatic products poultry pig feed and other feeds all

increased by more than 40%. Among them aquatic feed helps farmers achieve higher survival rates

and improve production efficiency by virtue of its excellent product strength and strong breeding

technology service system. At the same time it develops seed matching layout around the two major

varieties of global circulation and consumption-vannamei prawn and tilapia and continues to build

core competition barriers to promote the accelerated growth of aquatic feed sales; the advantages of

poultry feed products are also obvious and it is also forming a significant competitive advantage in

combination with seedlings which drives a rapid increase in sales; Sales of pig feed and other feeds

also increased steadily.The company's overseas feed business has developed at a high growth rate and its global layout

has achieved remarkable results. The company will continue to promote overseas market expansion

and production capacity construction and build global competition barriers and provide a solid

foundation for the long-term development of overseas business by building innovation-led

technology research and development capabilities industry-leading technical service capabilities

cost-leading global procurement capabilities and providing integrated seedling-material-

pharmaceutical solutions and replicable transnational localized operating systems.

2. Continuous research and development of seedlings and animal protection business and

actively develop new categories

During the reporting period the company's seedling business achieved operating income of 1.44

billion yuan. In terms of shrimp breeding it constitutes a germplasm resource bank with high genetic

diversity and has a number of specialized shrimp breeding centers expansion and testing bases to

ensure the strong competitiveness of the company's shrimp seedling products. The company

continued to adhere to and invest in the fish fry industry broke through the traditional breeding model

and introduced indoor factory breeding; the company has achieved important phased results in the

field of spineless fish and through the deep integration of production education and research it has

promoted the transformation of the achievements of the spineless Wuchang fish and grass carp

24varieties and promoted the industrial upgrading and promotion; the company has made great

breakthroughs in the breeding breeding and breeding of tilapia varieties and it is expected to rapidly

form industrial advantages in the next few years; It is the first to realize the large-scale development

of unisexual seedlings in raw fish yellow catfish and other varieties. From a geographical point of

view the company has invested in the construction of aquatic and poultry seedling farms in Vietnam

Indonesia Ecuador and other countries starting an international strategic layout.The overall operating income of the animal insurance business was 890 million yuan. Relying

on a strong independent research and development system and continuous innovation capabilities

the company intensively cultivates in the field of animal protection closely meets market demand

promotes iterative product upgrades and focuses on creating various high value-added animal

protection products. At the same time the company has deeply integrated the core technologies

related to functional materials and health materials into the feed business system realized the

synergistic empowerment of animal protection technology and feed business and continued to

improve the ability to escort farmers.

3. The professional ability is improved and the downstream aquaculture develops steadily

In 2025 the profit of the company's pig breeding business decreased by more than 900 million

yuan year-on-year mainly due to the following factors: * The pig market situation was complicated

throughout the year and the price of pigs continued to decline and it has been lower than the breeding

cost since September; * More than 40% of the piglets in the company's pig breeding were purchased

from outside and the high piglet price in 2025 further squeezed the company's pig breeding profit. In

the future the company will continue to focus on the capacity building of the pig breeding team and

the innovation of the asset-light model and focus on exploring and implementing the operation model

of "company + family farm locking profits and hedging risks" creating a light-asset low-risk and

stable pig breeding model reasonably controlling the pace of production and operation and

controlling the overall breeding risk.In terms of aquaculture the company's current main breeding species are special aquatic

products such as prawns. Factory shrimp farming has the advantages of safety controllability and

stable quality compared with traditional farming mode through factory scientific design circulating

water system biological feed technology and strict biological prevention and control and can form a

dislocation competition with traditional products in terms of time to market and product specifications.

25The company appropriately controls the scale of raw fish farming and continuously improves the

professional level of farming.

4. Future Outlook

Looking forward to the future the company has a clear strategy and clear goals: as the first core

business the feed business will continue to focus on core capacity building and large-scale expansion.The medium-term goal is to reach 51.5 million tons of sales in 2030; steadily increase domestic

capacity utilization and market share and accelerate the deployment of overseas feed business.Seedlings and animal protection businesses are both the company's core businesses and are an

important foundation for intensive animal farming with significant technical barriers and industrial

value. The company will continue to increase resource investment and research and development

efforts to seize the technological heights and industrial commanding heights and build core

competitive advantages. At the same time the company actively explores the asset-light pig raising

model and factory-based shrimp farming business insisting on forming unique competitiveness and

core advantages and becoming one of the company's main businesses in the future.The company will closely focus on its strategic goals unswervingly practice the core path of

operational excellence product leadership customer intimacy and global development gradually

and steadily promote the adjustment of management structure achieve its own high-quality growth

empower industry upgrades and continue to create value for society.III. Analysis of core competitiveness

The company's products and services are laid out around the needs of breeding. The core

competitiveness is reflected in the ability to create value for customers. The comprehensive

performance is the outstanding single product strength driven by research and development the

matching ability of high-quality seedlings and animal protection and the breeding technical service

ability directly to the terminal to build the output capacity of the overall breeding solution.

1. R&D-driven feed product strength is the company's most important competitive advantage

The company conducts research on basic forward-looking and key common issues in the seven

R&D directions of "animal genetics and breeding animal nutrition and feed veterinary medicine and

biopharmaceuticals microbial engineering biochemical engineering protein engineering and

26healthy breeding" and continuously improves the three-level R&D system to comprehensively and

effectively support drive and serve the needs of the rapid development of the group. The company

has a relatively rich technical research reserve and a huge R&D team. It invests a lot of money in

R&D every year. R&D personnel include animal nutrition veterinary breeding breeding mode

bioengineering biochemistry machinery and other multi-disciplinary talents. The transformation of

R&D results is fast and the investment supporting strategy can be clear and fast. Landed. For example

for feed formula technology through more than 20 years of continuous research and development

the company has established a huge animal nutrition demand database and reserves a variety of raw

material formula technologies. Every year thousands of sets of comparative experimental results are

added to the animal core nutrition demand and raw material utilization database to transform the

technology into productivity. Therefore the company has a strong ability to continuously optimize

product formulations and can quickly adjust formulations when raw material prices fluctuate to gain

a cost competitive advantage. At the same time the optimization and upgrading of products driven

by scientific and technological research and development can not only adapt to changes in the

breeding environment and changes in breeding models but also lead the progress of breeding

technology and the upgrading of breeding models.On the basis of a strong R&D system and continuous technological innovation the company's

various series of products are committed to creating product capabilities that are significantly ahead

of competitors. While high-end products are priced at high prices they all have obvious advantages

in the ultimate pursuit of animal survival rate growth effect and growth efficiency and their brand

effect is outstanding. On the basis of ensuring leading production efficiency mid-end products are

priced close to competitors' products and pursue outstanding product cost-effectiveness. Therefore

when the overall breeding efficiency of the industry is good the company's customers can obtain

significantly higher income than similar farmers; and when the industry's breeding efficiency declines

or even the whole industry loses money the company's customers can lose less or even no loss.

2. High-quality seedling animal protection solves the pain points of farmers

In the breeding industry chain seedlings are the "core chips" the link with the highest technical

threshold and the greatest potential for value mining. The company has the world's leading

technological advantages resource reserves and industrialization scale in the field of aquatic breeding.It is the first to build an integrated commercial breeding system for breeding reproduction and

27promotion in the industry. It is among the first batch of 20 "China Aquatic Seed Industry Integrated

Advantage Enterprises" and has been selected as a national seed industry formation enterprise. The

company has technologically advanced shrimp fry and freshwater fish fry breeding technology and

has cultivated a number of new varieties with fast production speed and strong disease resistance and

stress resistance. There are 9 new national aquatic species: Litopenaeus vannamei "Haixingnong No.

2" Litopenaeus vannamei "Haixingnong No. 3" Litopenaeus vannamei "Haijingzhou No. 1" Tilapia

"Bairong No. 1" Hybrid Channa "Xiongbi No. 1" Tuantou "Huahai No. 1" Changzhu hybrid

mandarin catfish hybrid yellow croaker "Baixiong No. 1" grass carp "Husu No. 1".The company's animal protection vaccine is guided by distinctive technology and research and

development and is empowered by a complete service system and mature breeding plan. It has strong

market competitiveness and excellent market reputation and solves the pain points of breeding for

farmers all over the country. High-quality aquatic animal protection and livestock and poultry animal

protection products can help farmers improve the breeding environment prevent and control diseases

of farmed animals reduce disease losses realize healthy safe and controllable breeding process

reduce breeding costs and improve breeding efficiency.

3. The breeding technology service system is an important starting point for the company to

create value for customers continuously acquire new customers and improve customer viscosity

In 2006 the company took the lead in the industry to provide comprehensive technical services

to farmers and positioned the company as a service-oriented enterprise that provides farmers with

overall breeding solutions. The company provides farmers with product and technical service support

for the whole breeding process such as "seedling-stocking mode-environmental control-disease

control-feed-market information" to ensure that farmers can use the most advanced breeding

technology so as to ensure the success and profitability of farmers. The company has the most

experienced and passionate technical service team in the industry; and has accumulated a variety of

advanced breeding models based on local characteristics; it has hundreds of efficient service stations

in the national breeding intensive areas which can provide technical services for tens of thousands

of farmers at the same time. The company's relatively complete service system in the industry can

give full play to the advantages of product strength and provide technical services throughout the

breeding process which can effectively amplify customer benefits and increase customer stickiness.

28The company's breeding technical services started from aquaculture services. After more than

ten years of talent team building and platform building the process and concept of the breeding

technical service system have penetrated into all aspects of product technology research and

development market and operation driving the company's aquatic feed and animal protection

business development to highlight the effect and the process and ideas have been gradually promoted

to pig breeding and have achieved obvious results. Comprehensive breeding technical services have

become an important brand label of the company and it is an important starting point for the company

to create value for customers acquire customers and improve customer stickiness.IV. Main business analysis

1. Overview

Please refer to the relevant content of "II. The industry in which the company operates during the

reporting period".

2. Revenue and Cost

(1) Composition of operating income

Unit: Yuan

2025 2024 Year-on-year

Amount Proportion of Proportion of

increase or

operating income Amount operating income decrease

Total operating

income 128468230914.96 100% 114601056662.29 100% 12.10%

By industry

Feed industry 110509308067.35 86.02% 95774577643.37 83.57% 15.38%

Breeding industry 17958922847.61 13.98% 18826479018.92 16.43% -4.61%

Sub-product

Feed 105257615986.92 81.93% 91202471546.02 79.58% 15.41%

Animal health

products 891050510.76 0.69% 845785008.00 0.74% 5.35%

Agricultural

products 17958922847.61 13.98% 18826479018.92 16.43% -4.61%

Trading business 4124515406.60 3.21% 3435411501.16 3.00% 20.06%

Other business 236126163.07 0.19% 290909588.19 0.25% -18.83%

By regions

South China 68610857366.39 53.41% 67393687661.28 58.81% 1.81%

29East China 18139504851.76 14.12% 16343599813.21 14.26% 10.99%

North China 29197174546.67 22.73% 27435014704.38 23.94% 6.42%

Central China 34662098357.55 26.98% 30865136138.53 26.93% 12.30%

Overseas area 16636118527.14 12.95% 14339378668.54 12.51% 16.02%

Combined offset -38777522734.55 -30.19% -41775760323.65 -36.45% -7.18%

(2) The situation of industries products regions and sales models that account for more than

10% of the company's operating income or operating profit

□Applicable □ Not applicable

Unit: Yuan

Increase or Operating Gross profit

decrease in costs margin

operating increased or increased or

Operating income Operating cost Gross margin income over decreased decreased

the same compared to compared

period of the the same with the same

previous year period last period last year year

By industry

Feed industry 110509308067.35 99686866392.64 9.79% 15.38% 15.57% -0.15%

Breeding

industry 17958922847.61 15506477221.90 13.66% -4.61% 0.79% -4.62%

Sub-product

Feed 105257615986.92 95075398107.81 9.67% 15.41% 15.50% -0.07%

Animal

protection 891050510.76 485883904.63 45.47% 5.35% 32.02% -11.01%

products

Agricultural

products 17958922847.61 15506477221.90 13.66% -4.61% 0.79% -4.62%

Trading

business 4124515406.60 4016901743.07 2.61% 20.06% 17.69% 1.96%

By regions

South China 68610857366.39 62411244649.22 9.04% 1.81% 3.22% -1.24%

East China 18139504851.76 17030498113.15 6.11% 10.99% 10.99% -0.01%

North China 29197174546.67 27759517038.81 4.92% 6.42% 6.41% 0.01%

Central China 34662098357.55 33106730999.13 4.49% 12.30% 14.75% -2.03%

Overseas area 16636118527.14 14051934824.02 15.53% 16.02% 13.13% 2.15%

If the statistical caliber of the company's main business data is adjusted during the reporting period

the company's main business data adjusted according to the caliber at the end of the reporting

period in the most recent year

□ Applicable □Not Applicable

30(3) Whether the company's physical sales income is greater than the labor income

□Yes □ No

Industry Year-on-year

classification Projects Unit 2025 2024 increase or decrease

Sales volume 10000 tons 3208.70 2652.42 20.97%

Feed industry Production volume 10000 tons 3209.38 2656.50 20.81%

Inventory 10000 tons 30.88 30.20 2.25%

Explanation of the reasons why the relevant data has changed by more than 30% year-on-year

□ Applicable □Not Applicable

(4) The performance of major sales contracts and major procurement contracts signed by the

company as of the reporting period

□ Applicable □Not Applicable

(5) Composition of operating costs

Industry and Product Classification

Unit: Yuan

20252024

Industry Year-on-year

classification Projects increase or Amount Proportion of Amount Proportion of operating cost operating cost decrease

Feed industry Material cost 95309297182.93 95.61% 82300277709.15 95.42% 15.81%

Feed industry Labor cost 1178085174.41 1.18% 1059264120.40 1.23% 11.22%

Feed industry Manufacturing expenses 2834764084.00 2.84% 2532650682.13 2.94% 11.93%

Contract

Feed industry performance 256037314.17 0.26% 204940960.99 0.24% 24.93%

cost

Feed industry other 108682637.13 0.11% 157822034.39 0.18% -31.14%

Total feed

industry 99686866392.64 100.00% 86254955507.06 100.00% 15.57%

Breeding

industry Material cost 12447511886.17 80.27% 12710121419.04 82.62% -2.07%

Breeding

industry Labor cost 2050256772.73 13.22% 1781888643.36 11.58% 15.06%

Breeding Manufacturing

industry expenses 966246302.52 6.23% 856521390.67 5.57% 12.81%

Breeding Contract

industry performance 42462260.48 0.27% 36090528.04 0.23% 17.65% cost

Total breeding

industry 15506477221.90 100.00% 15384621981.11 100.00% 0.79%

Unit: Yuan

3120252024

Product Year-on-year

categories Projects Amount Proportion of Amount Proportion of

increase or

operating cost operating cost decrease

Feed Material cost 90886399632.48 95.59% 78583692155.91 95.47% 15.66%

Feed Labor cost 1153007050.12 1.21% 1040158185.91 1.26% 10.85%

Feed Manufacturing expenses 2797772533.08 2.94% 2502195525.44 3.04% 11.81%

Contract

Feed performance 238218892.13 0.25% 189937237.48 0.23% 25.42%

cost

Total feed 95075398107.81 100.00% 82315983104.74 100.00% 15.50%

Animal

protection Material cost 405995807.38 83.56% 303482482.82 82.46% 33.78%

products

Animal

protection Labor cost 25078124.29 5.16% 19105934.49 5.19% 31.26%

products

Animal

protection Manufacturing 36991550.92 7.61% 30455156.69 8.27% 21.46%

products expenses

Animal Contract

protection performance 17818422.04 3.67% 15003723.51 4.08% 18.76%

products cost

Total animal

insurance 485883904.63 100.00% 368047297.51 100.00% 32.02%

products

Agricultural

products Material cost 12447511886.17 80.27% 12710121419.04 82.62% -2.07%

Agricultural

products Labor cost 2050256772.73 13.22% 1781888643.36 11.58% 15.06%

Agricultural Manufacturing

products expenses 966246302.52 6.23% 856521390.67 5.57% 12.81%

Agricultural Contract

products performance 42462260.48 0.27% 36090528.04 0.23% 17.65% cost

Total

agricultural 15506477221.90 100.00% 15384621981.11 100.00% 0.79%

products

Trade industry Cost of sales 4016901743.07 100.00% 3413103070.42 100.00% 17.69%

other Cost of sales 108682637.13 100.00% 157822034.39 100.00% -31.14%

Description

No.

(6) Whether the scope of consolidation has changed during the reporting period

□Yes □ No

The company included 611 subsidiaries in the consolidated financial statements this year an

increase of 64 and a decrease of 27 over the previous year. For details please refer to Note VII in

Section VIII "Financial Reports". Interests in other entities.

32(7) Significant changes or adjustments in the company's business products or services during

the reporting period

□ Applicable □Not Applicable

(8) Major sales customers and major suppliers

The company's main sales customers

The total sales amount of the top five customers (yuan) 3143410697.38

The proportion of the total sales amount of the top five

customers to the total annual sales 2.45%

The proportion of related party sales in the top five customer

sales to the total annual sales 0.00%

The company's top 5 customer profiles

Serial number Customer name Sales (yuan) % of total annual sales

1 First place 699546515.58 0.54%

2 Second place 628927408.60 0.49%

3 Third place 618579129.10 0.48%

4 Fourth place 603361556.29 0.47%

5 Fifth place 592996087.81 0.46%

Total -- 3143410697.38 2.45%

Other descriptions of major customers

□ Applicable □Not Applicable

The company's main suppliers

The total purchase amount of the top five suppliers (yuan) 17797622925.28

The proportion of the total purchase amount of the top five

suppliers to the total annual purchase amount 15.75%

The proportion of related party purchases in the total annual

purchases of the top five suppliers 0.00%

The company's top 5 suppliers

Serial number Supplier name Purchase amount (yuan) Percentage of total annual purchases

1 First place 7309992105.26 6.51%

2 Second place 3084798177.87 2.70%

3 Third place 2848434791.51 2.53%

4 Fourth place 2586784391.89 2.27%

5 Fifth place 1967613458.75 1.74%

Total -- 17797622925.28 15.75%

Other descriptions of major suppliers

33□ Applicable □Not Applicable

During the reporting period the company's trading business income accounted for more than 10%

of its operating income

□ Applicable □Not Applicable

3. Fees

Unit: Yuan

Year-on-year

2025 2024 increase or Description of major changes

decrease

A year-on-year increase of 8.84% was mainly

Selling 2838918272.58 2608350800.44 8.84% due to the expansion of the company's sales expense volume the increase in sales and service

personnel and the increase in salary levels.Administration A year-on-year increase of 16.07% was mainly

expense 3699769055.55 3187514888.49 16.07% due to the increase in salary levels and the increase in office-related expenses.Finance A year-on-year decrease of 31.03% was

expense 254979226.98 369711343.72 -31.03% mainly due to the decrease in financing scale and the decrease in financing costs.A year-on-year increase of 8.53% was mainly

R&D expenses 933395251.56 860035315.34 8.53% due to the increase in the company's R&D personnel the increase in salary levels and the

increase in related consulting services.

4. R&D investment

□Applicable □ Not applicable

Main R&D Expected impact on the

project name Project purpose Project progress Goals to be achieved company's future development

The cost of feed has been

Determine the precise significantly reduced

Construction and nutritional requirements Nutrition is more precise feed cost the cost of breeding by

maintenance of of multiple aquatic farmers has been

precision Precision products in various

is saved feed waste is avoided the

breeding modes environment is protected feed

significantly reduced

nutrition database Nutrition different growth stages digestion and absorption are more

and the growth

for various complete and growth performance performance of aquatic

aquatic products different breeding stages and different breeding is greatly improved.products has been

higher which promotes

environments. the green development

of the breeding industry.Immune enhancers have In view of common diseases of Establishment of Development Focusing on the core

disease-resistant of functional been developed to

livestock and poultry immune

enhancers can significantly concept of creating value

nutrition system feed and improve the resistance of for customers we will

for livestock and functional pigs and poultry to

improve disease resistance and improve the efficiency of

poultry additives bacterial and viral

provide a strong guarantee for the

healthy and efficient production of breeding and enhance diseases. livestock and poultry breeding. the product strength.Constructing an Provide high- It has been awarded a Complete the systematic work of Relying on the whole

integrated shrimp quality stable number of national seed industry selection and industry chain of

and fish fry shrimp and fish aquatic new varieties breeding germplasm resource aquaculture we will give

34breeding system fry and continues to promote protection and germplasm family full play to the

the genetic breeding establishment. advantages of the three-

research of other body linkage of "feed +

varieties. seedlings + animal

protection" to promote

the green and high-

quality development of

aquaculture.The research on the Choose raw materials that are easy

nutritional value to digest and absorb nutrients which are more in line with the

Establishment of evaluation nutritional pulverization and relaxation of the

nutritional system requirements feeding mode feed processing gastrointestinal tract of piglets and Create the quality of for teaching Precision and other aspects of all-round balanced nutrition so teaching materials and trough material Nutrition different raw materials that piglets are healthier and have create industry and nursery has been completed and a higher survival rate; better benchmarks. material the effect has been intestinal development less

verified in the breeding diarrhea; better feed palatability

terminal. better nutrient absorption better balance and faster growth.Company R&D personnel

2025 2024 Change ratio

Number of R&D personnel

(person) 4208 3860 9.02%

The proportion of R&D

personnel 9.53% 9.23% 0.30%

Educational structure of R&D personnel

Undergraduate 1139 1012 12.55%

Master 1012 922 9.76%

PhD 135 137 -1.46%

Age composition of R&D personnel

Under 30 2235 2057 8.65%

30 ~ 40 years old 1290 1206 6.97%

40 ~ 50 years old 449 391 14.83%

Over 50 years old 234 206 13.59%

The company's R&D investment

2025 2024 Change ratio

R & D investment amount (yuan) 971317029.77 911811476.92 6.53%

R & D investment as a percentage of operating income 0.76% 0.80% -0.04%

Amount of capitalized R&D investment (yuan) 37921778.21 51776161.58 -26.76%

Capitalized R&D investment as a percentage of R&D

investment 3.90% 5.68% -1.78%

The reasons and impacts of major changes in the composition of the company's R&D personnel

□ Applicable □Not Applicable

Reasons for the significant change in the proportion of total R&D investment in operating income

compared with the previous year

35□ Applicable □Not Applicable

Reasons for the substantial change in the capitalization rate of R&D investment and its rationality

□ Applicable □Not Applicable

5. Cash flow

Unit: Yuan

Year-on-year

Projects 2025 2024 increase or

decrease

Subtotal of cash inflow from operating

activities 130437396701.31 117807433617.72 10.72%

Subtotal of cash outflows from operating

activities 124177019378.09 109811178242.67 13.08%

Net cash flow from operating activities 6260377323.22 7996255375.05 -21.71%

Subtotal of cash inflows from investing

activities 19112912102.13 17400060753.23 9.84%

Subtotal of cash outflows from investing

activities 20454523514.82 23805566731.01 -14.08%

Net cash flows from investing activities -1341611412.69 -6405505977.78 79.06%

Subtotal of cash inflows from financing

activities 5273318177.53 7750505656.53 -31.96%

Subtotal of cash outflows from financing

activities 10449217959.41 11360973044.88 -8.03%

Net cash flows from financing activities -5175899781.88 -3610467388.35 -43.36%

Cash and cash equivalents -328369011.91 -2040303927.96 83.91%

Description of the main influencing factors for the significant year-on-year changes in relevant data

□Applicable □ Not applicable

1. The net cash flow from operating activities decreased by 21.71% compared with the same period

of the previous year mainly due to the increase in cash paid by the company for purchasing goods

and accepting labor services as well as the expansion of the company's sales volume and the

increase in the level of compensation and benefits for employees that is the increase in cash paid to

and for employees.

2. The net cash flow from investing activities increased by 79.06% compared with the same period

of the previous year mainly due to the increase in cash received by the company to recover

investment in the current period and the decrease in the scale of wealth management.

3. The net cash flow from financing activities decreased by 43.36% compared with the same period

of the previous year which was mainly due to the increase in the cash paid by the company for the

36distribution of dividends in the current period.

Explanation of the reasons for the significant difference between the net cash flow generated by the

company's operating activities during the reporting period and the net profit for the year

□ Applicable □Not Applicable

V. Analysis of non-main business

□ Applicable □Not Applicable

VI. Analysis of Assets and Liabilities

1. Major changes in asset composition

Unit: Yuan

End of 2025 Early 2025 Proportion

% of % of increase Description of major changes

Amount total Amount total or

assets assets decrease

The proportion of total assets at

the end of the period decreased

by 0.5% compared with the

beginning of the period and the

Monetary fund 3202836313.58 6.73% 3478256875.63 7.23% -0.50% amount at the end of the period

decreased by 7.92% compared

with the beginning of the period

mainly due to cash dividends and

share repurchase.The proportion of total assets at

the end of the period increased by

1.84 percentage points compared

with the beginning of the period

and the amount at the end of the

Accounts period increased by 40.12%

Receivable 2978763231.09 6.26% 2125872345.43 4.42% 1.84% compared with the beginning of the period mainly due to the

expansion of the company's

business scale and the

corresponding increase in

accounts receivable from

customers.Contract assets 0.00 0.00% 0.00 0.00% 0.00% Not applicable

The proportion of total assets at

the end of the period increased by

0.44 percentage points from the

Inventory 11371777008.15 23.89% 11290384103.30 23.45% 0.44% beginning of the period and the

amount at the end of the period

was basically the same as that at

the beginning of the period.Investment 47197067.54 0.10% 92624790.99 0.19% -0.09% The proportion of total assets at the end of the period decreased

37End of 2025 Early 2025 Proportion

% of % of increase Description of major changes

Amount total Amount total or

assets assets decrease

real estate by 0.09 percentage points from

the beginning of the period and

the amount at the end of the

period decreased by 49.04% from

the beginning of the period

mainly due to the completion of

the sale of the land held by the

company to be sold during the

period.The proportion of total assets at

the end of the period increased

slightly by 0.06 percentage points

from the beginning of the period

Long‐term and the amount at the end of the

equity 305960124.82 0.64% 280217892.86 0.58% 0.06% period increased by 9.19% from

investment the beginning of the period

mainly due to the increase in

investment income recognized by

associates under the equity

method.The proportion of total assets at

the end of the period increased by

0.57 percentage points from the

Fixed assets 17007956953.83 35.74% 16930687726.99 35.17% 0.57% beginning of the period and the

amount at the end of the period

was basically the same as that at

the beginning of the period.The proportion of total assets at

the end of the period increased by

0.38 percentage points compared

with the beginning of the period

Construction and the amount at the end of the

in progress 603959168.05 1.27% 426719987.46 0.89% 0.38% period increased by 41.54% compared with the beginning of

the period mainly due to the

increase in supporting projects of

the company's feed projects

under construction.The proportion of total assets at

the end of the period increased by

Right-of-use 0.24 percentage points from the

asset 2848775741.09 5.99% 2769825756.21 5.75% 0.24% beginning of the period and the amount at the end of the period

was basically the same as that at

the beginning of the period.The proportion of total assets at

the end of the period increased by

1.93 percentage points compared

with the beginning of the period

Short-term and the amount at the end of the

loan 1163647077.79 2.45% 251739887.29 0.52% 1.93% period increased by 362.24% compared with the beginning of

the period mainly due to the

adjustment of the company's

long-term/short-term loan

structure in the current period.The proportion of total assets at

the end of the period increased by

Contract 0.74 percentage points compared

liabilities 2581711607.32 5.42% 2251063282.58 4.68% 0.74% with the beginning of the period

and the amount at the end of the

period increased by 14.69%

38End of 2025 Early 2025 Proportion

% of % of increase or Description of major changes Amount total Amount total

assets assets decrease

compared with the beginning of

the period mainly due to the

expansion of the company's sales

volume and the increase in

advance receipts.The proportion of total assets at

the end of the period decreased

by 3.16 percentage points

compared with the beginning of

the period and the amount at the

Long-term 249637310.50 0.52% 1769821334.89 3.68% -3.16% end of the period decreased by loan 85.89% compared with the

beginning of the period mainly

due to the early repayment of

some long-term bank loans and

the transfer of long-term loans

due within one year.The proportion of total assets at

the end of the period increased by

0.34 percentage points from the

beginning of the period and the

Lease

liabilities 2155819284.66 4.53% 2015568878.94 4.19% 0.34%

amount at the end of the period

increased by 6.96% from the

beginning of the period mainly

due to the expansion of the

company's business scale and the

addition of leasing business.The proportion of total assets at

the end of the period decreased

by 5.24 percentage points

compared with the beginning of

Trading the period and the amount at the

financial 2118734927.43 4.45% 4662427829.82 9.69% -5.24% end of the period decreased by

assets 54.56% compared with the

beginning of the period mainly

due to the recovery of the

company's idle funds and wealth

management.The proportion of total assets at

the end of the period increased by

0.58 percentage points compared

with the beginning of the period

Advance 898028973.32 1.89% 628293443.54 1.31% 0.58% and the amount at the end of the payment period increased by 42.93%

compared with the beginning of

the period mainly due to the

increase in the company's

prepayments for raw materials.The proportion of total assets at

the end of the period increased by

0.11 percentage points compared

with the beginning of the period

Long-term and the amount at the end of the

receivables 218462655.69 0.46% 169130714.29 0.35% 0.11% period increased by 29.17% compared with the beginning of

the period mainly because the

company increased the long-term

receivables of financial leases

and leases in the current period.The proportion of total assets at

Goodwill 391322506.75 0.82% 245178825.99 0.51% 0.31% the end of the period increased by

0.31 percentage points from the

39End of 2025 Early 2025 Proportion

% of % of increase Description of major changes

Amount total Amount total or

assets assets decrease

beginning of the period and the

amount at the end of the period

increased by 59.61% from the

beginning of the period mainly

due to the increase in the

company's equity acquisition

business not under the same

control in the current period.The proportion of total assets at

the end of the period increased by

0.27 percentage points compared

with the beginning of the period

and the amount at the end of the

Long-term period increased by 41.23%

deferred 417290154.13 0.88% 295462632.97 0.61% 0.27% compared with the beginning of

expenses the period mainly due to the

increase in the company's

expenditure on office decoration

and production facilities

improvement in the current

period.The proportion of total assets at

the end of the period increased by

0.64 percentage points compared

with the beginning of the period

and the amount at the end of the

Deferred Tax period increased by 40.7%

Assets 1022909749.23 2.15% 726995506.26 1.51% 0.64% compared with the beginning of the period mainly due to the

increase in deferred assets

recognized by the company's

lease liabilities asset impairment

reserves and credit impairment

reserves in the current period.The proportion of total assets at

the end of the period increased by

0.3 percentage points compared

with the beginning of the period

and the amount at the end of the

Other non- 307915733.10 0.65% 167343863.72 0.35% 0.30% period increased by 84% current assets compared with the beginning of

the period mainly due to the

increase in the company's

advance payment for equipment

and construction in the current

period.The proportion of total assets at

the end of the period increased by

1.21 percentage points from the

beginning of the period and the

amount at the end of the period

Other payables 1519032906.76 3.19% 952217282.62 1.98% 1.21% increased by 59.53% from the beginning of the period mainly

due to the increase in the equity

transfer payment payable by the

company for the acquisition of

minority shareholders' equity in

the current period.Non-current The proportion of total assets at

liabilities due 512564985.67 1.08% 1229927887.97 2.55% -1.47% the end of the period decreased within one by 1.47 percentage points

year compared with the beginning of

40End of 2025 Early 2025 Proportion

% of % of increase or Description of major changes Amount total Amount total

assets assets decrease

the period and the amount at the

end of the period decreased by

58.33% compared with the

beginning of the period mainly

due to the decrease of the

company's long-term loans due

within one year in the current

period.The proportion of total assets at

the end of the period increased by

1.21 percentage points from the

beginning of the period and the

Treasury stock 870133667.50 1.83% 300081705.48 0.62% 1.21% amount at the end of the period

increased by 189.97% from the

beginning of the period mainly

due to the company's repurchase

of shares in the current period.The proportion of total assets at

the end of the period decreased

by 1.39 percentage points from

the beginning of the period and

the amount at the end of the

Other period decreased by 187.17%

comprehensive -310781746.53 -0.65% 356509145.52 0.74% -1.39% from the beginning of the period

income mainly because the company's

cash flow hedging reserves

included in other comprehensive

income in the previous period

were transferred to profit and loss

in the current period.Overseas assets account for a relatively high proportion

□ Applicable □Not Applicable

2. Assets and liabilities measured at fair value

□Applicable □ Not applicable

Unit: ten thousand yuan

Gains and

losses from Changes in Impairment

Beginning changes in cumulative provision Purchase Amount sold

Projects of the fair value fair value for the amount in in the Other Ending

period for the included in current the current current changes number

current equity period period period

period

Financial assets

1.

Transactional

financial

assets

(excluding 35805.96 -12427.20 8962.48 48.81 39.98 10302.47

derivative

financial

assets)

41Gains and

losses from Changes in Impairment

Beginning changes in cumulative provision Purchase Amount sold

Projects of the fair value fair value for the amount in in the Other Ending

period for the included in current the current current changes number

current equity period period period

period

5. Other non-

current

financial 23838.06 658.00 90.00 24585.74

assets

Subtotal of

financial 59644.02 -11769.20 8962.48 0.00 138.81 39.98 0.00 34888.21

assets

Other [Note] 430436.82 -450.44 1166600.00 1400688.82 201571.02

Total of the

above 490080.84 -12219.64 8962.48 0.00 1166738.81 1400728.80 0.00 236459.23

Financial

liabilities 7739.03 9520.45 -6259.67 6497.03

Note: Others are wealth management products.Other changes

No.Whether the measurement attributes of the company's main assets have changed significantly

during the reporting period

□Yes □No

3. Restricted asset rights as of the end of the reporting period

As of the end of the reporting period the company still had restricted assets of RMB

375431932.40 which were mainly land reclamation deposits guarantee deposits futures account

funds fixed assets mortgaged by loans etc.VII. Analysis of investment status

1. Overall situation

□Applicable □ Not applicable

Investment in the reporting period (yuan) Investment in the same period last year (yuan) Range of change

3336532557.693136747295.936.37%

422. Significant equity investments obtained during the reporting period

□ Applicable □Not Applicable

3. Major non-equity investments in progress during the reporting period

□ Applicable □Not Applicable

4. Financial asset investment

(1) Securities investment

□Applicable □ Not applicable

Unit: Yuan

Gains

and

losses Chang

Accou Book from es in

Purch Profit

Abbre value chang cumul ase

Amou

nt and Book Types

of Securi viatio

Initial nting at the es in ative amou sold loss value Accou Sourc

securi ties n of

invest measu nt in for at the nting

Code securi ment remen

begin fair fair

ning value value the

in the

curren the end of subjec

e of

ties cost t curren report the ts funds ties model of the for includ t period the ed in t ing period

curren equity period

period period

t

period

Dome Aono

stic ng Fair Tradi Incom

and 60336 Biolo 8605 value

e

overse gical measu 3622 1286 0.00 4880 3998 1559 6064

ng

3.SH 86.44 94.22 31.10 57.92 49.99 52.57 54.72 financ

from

as Techn remen ial debt

stocks ology t assets repay

[Note] Group ment

Other securities

investments held at the 0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --

end of the period

Total 8605 -- 3622 1286 0.00 4880 3998 1559 606486.44 94.22 31.10 57.92 49.99 52.57 54.72 -- --

Note: According to the "Reorganization Plan of Fujian Aonong Biological Technology Group

Incorporation Ltd." approved by the court the company has transferred the shares of Aonong

Biological Technology Group (603363.SH) to offset the company's receivables.

(2) Derivatives investment

□Applicable □ Not applicable

431) Derivative investments for hedging purposes during the reporting period

□Applicable □ Not applicable

Unit: ten thousand yuan

The

proportion

of the

Gains and investment

Amount losses Changes in Amount Amount amount at

Derivatives Initial at the from Amount the end of

investment investment beginning changes in

cumulative purchased sold during

fair value fair value during the the

at the end the period

type amount of the included in reporting reporting of the to the

period for the current equity period period

period company's

net assets at

period the end of

the

reporting

period

Futures

company 0 59768.13 -3494.31 2740.42 479440.13 486109.7 43985.34 1.81%

Commercial

Bank 0 0 584.17 -37.61 0 0 0 0.00%

Total 0 59768.13 -2910.14 2702.81 479440.13 486109.7 43985.34 1.81%

The

accounting

policies and

specific

principles of

accounting for

hedging

business According to the relevant provisions of the Ministry of Finance's "Accounting Standards for Business Enterprises

during the No. 22 — Recognition and Measurement of Financial Instruments" "Accounting Standards for Business

reporting Enterprises No. 23 — Transfer of Financial Assets" "Accounting Standards for Business Enterprises No. 24 —

period and an Hedging Accounting" "Accounting Standards for Business Enterprises No. 37 — Presentation of Financial

explanation of Instruments" and their guidelines the company conducts corresponding accounting and processing for the

whether there hedging business carried out. There was no significant change in the accounting policies and accounting of the

have been company's hedging business during the reporting period compared with the previous reporting period.significant

changes

compared with

the previous

reporting

period

Explanation of In order to avoid the fluctuation of the market price of raw materials such as corn and meal and the fluctuation

actual profit risk of expected future cash flow caused by the expected sales of live pigs the company has carried out commodity

and loss during futures hedging business; in order to avoid the operating risks brought by foreign exchange rate fluctuations to

the reporting the company it has carried out foreign exchange hedging business. During the reporting period the actual profit

period and loss of the company's commodity and foreign exchange hedging derivative contracts and spot profits and losses totaled -185 million yuan.The company's commodity futures hedging futures are mainly corn meal and other raw materials related to

production and operation and live pigs and inventory-related commodities. Through the change of the value of

Description of hedging instruments the risk of changes in the value of the hedged item is effectively hedged and the expected

hedging effect risk management goal is basically achieved. The company's foreign exchange hedging business means that the company's overseas bank loan financing business and overseas procurement business face the risk of exchange

rate fluctuations. By carrying out forward foreign exchange settlement and sales and currency swaps the company

locks in exchange rate costs and effectively hedges uncertain risks arising from exchange rate fluctuations.Sources of

Funds for

Derivatives Own funds

Investment

44The

proportion

of the

Gains and investment

Amount losses from Changes in Amount Amount

amount at

Derivatives Initial at the cumulative purchased sold during Amount the end of

investment investment beginning changes in fair value during the the at the end the period

type amount of the fair value for the included in reporting reporting

of the to the

period period company's current equity period period net assets at

period the end of

the

reporting

period

1. Match the hedging business with the company's production and operation strictly control the futures and

options positions conduct foreign exchange hedging transactions in strict accordance with the company's

predicted foreign exchange collection period foreign exchange payment period and amount and reasonably use

futures options the above product portfolio foreign exchange hedging and other tools to lock the company's feed

Risk analysis raw materials and other related product costs and expenses.of derivative 2. Strictly control the capital scale of hedging rationally plan and use margin issue operation instructions in strict

positions accordance with the company's futures trading management system and conduct operations after approval

during the according to regulations. The company will rationally allocate funds for hedging business.reporting 3. According to the "Guidelines for Self-Regulatory Supervision of Listed Companies on the Shenzhen Stock

period and Exchange No. 7 — Transactions and Related Party Transactions" and other relevant regulations the company has

description of formulated the "Commodity Hedging Business Management System" "Futures Management Measures" and

control "Live Pig Futures Business Operation Management Measures" and other systems which clearly stipulate the

measures approval authority internal review process and risk handling procedures for hedging business. The company has

(including but established a dedicated commodity hedging operation team a commodity hedging business operation monitoring

not limited to team and corresponding business processes which are controlled by the implementation of authorization and post

market risk containment as well as internal auditing and other measures.liquidity risk 4. The company has formulated the foreign exchange hedging business management system which clearly

credit risk stipulates the company's foreign exchange hedging business quota product scope approval authority internal

operational review process responsible department and responsible person information isolation measures internal risk

risk legal risk reporting system and risk handling procedures etc. The system meets the relevant requirements of the regulatory

etc.) authorities and meets the needs of actual operation and the risk control measures formulated are practical and

effective.

5. The company's risk control department regularly and irregularly inspects the hedging transaction business

supervises the hedging transaction business personnel to implement risk management policies and risk

management work procedures and prevent operational risks in the business in a timely manner.In the case of

changes in the

market price or

the fair value

of the product

during the

reporting

period of the

invested The company's commodity hedging transactions are traded on the futures exchange with great market

derivatives the transparency and very active transactions. The transaction price and the settlement unit price of the day can fully

analysis of the reflect the fair value of the derivatives; the foreign exchange hedging transactions are measured at the fair value

fair value of of the date when the contract between the company and the commercial bank is signed and the subsequent

the derivatives measurement of its fair value is based on the closing valuation notice of each commercial bank.shall disclose

the specific

methods used

and the setting

of relevant

assumptions

and parameters

Litigation-

related

circumstances Not applicable

(if applicable)

Announcement

of the Board of July 25 2025

45The

proportion

of the

Gains and investment

Amount losses from Changes in Amount Amount

amount at

Derivatives Initial at the cumulative purchased sold during Amount the end of

investment investment beginning changes in fair value fair value during the the

at the end the period

type amount of the included in reporting reporting of the to the

period for the period company's current equity period period net assets at

period the end of

the

reporting

period

Directors for

Derivatives

Investment

Approval

Disclosure

Date (if any)

Derivatives

Investment

Approval

Shareholders'

Meeting August 14 2025

Announcement

Disclosure

Date (if any)

2) Derivatives investment for speculative purposes during the reporting period

□ Applicable □Not Applicable

During the reporting period the company did not invest in derivatives for speculative purposes.VIII. Major Asset and Equity Sale

1. Sale of major assets

□ Applicable □Not Applicable

The company did not sell any major assets during the reporting period.

2. Sale of major equity

□ Applicable □Not Applicable

46IX. Analysis of major holding companies

□ Applicable □Not Applicable

During the reporting period the company did not have any important information on holding

companies that should be disclosed.X .structured entities controlled by the company

□ Applicable □Not Applicable

XI. Prospects for the company's future development

Please refer to the relevant content of "II. The industry in which the company operates during the

reporting period".XII. Reception of research communication interviews and other activities during the

reporting period

□Applicable □ Not applicable

The main

content of

Reception Reception Reception the Reception Reception object discussion Basic Information Index time location object type and the of the Survey

information

provided

The survey results are

Company published on

January Shanghai other Mechanism UBS Securities production www.cninfo.com.cn and 16 2025 Danshuiquan etc and the interactive website of

operation the Shenzhen Stock

Exchange's website

The survey results are

Company published on

February Gf Securities Cathay production www.cninfo.com.cn and

28 2025 Shanghai other Mechanism Pacific Fund etc and the interactive website of

operation the Shenzhen Stock

Exchange's website

The survey results are

Company published on

March 07

2025 Wuhan other Mechanism

Changjiang Securities production www.cninfo.com.cn and

Penghua Fund etc and the interactive website of

operation the Shenzhen Stock

Exchange's website

47The main

content of

Reception Reception Reception Reception

the

time location object type Reception object discussion

Basic Information Index

and the of the Survey

information

provided

The survey results are

Company published on

March 14 Shenzhen other Mechanism Huatai Securities GF production www.cninfo.com.cn and 2025 Fund etc and the interactive website of

operation the Shenzhen Stock

Exchange's website

Interpretation

of the The survey results are published on

April 22 Company meeting Telephone

company's

2025 communication Mechanism

Gf Securities E Fund annual www.cninfo.com.cn and

room etc results and the interactive website of

first quarter the Shenzhen Stock

results Exchange's website

The

company's The survey results are

Online Investors participating production published on

April 25 p5w.net communication other in the

and

2025 on network "Panorama · Roadshow operation

www.cninfo.com.cn and

the interactive website of

platform World" interaction and the company's the Shenzhen Stock

development Exchange's website

strategy

The survey results are

May 13 Company Gf Securities Invesco

Company published on

meeting Field research Mechanism Great Wall Fund production www.cninfo.com.cn and 2025 room Harvest Fund etc and the interactive website of operation the Shenzhen Stock

Exchange's website

The survey results are

May 28 Hangzhou

Company published on

2025 Shanghai other Mechanism

Gf Securities Huatai production www.cninfo.com.cn and

Ningbo Bai Rui Fund etc and the interactive website of operation the Shenzhen Stock

Exchange's website

The survey results are

Company published on

June 13 Chengdu other Mechanism Gf Securities Huatai production www.cninfo.com.cn and 2025 Shanghai Bai Rui Fund etc and the interactive website of

operation the Shenzhen Stock

Exchange's website

Interpretation The survey results are

July 29 Company

published on

meeting Telephone Gf Securities E Fund

of the

2025 communication Mechanism etc company's

www.cninfo.com.cn and

room semi-annual the interactive website of

results the Shenzhen Stock Exchange's website

The survey results are

Company published on

August China Universal Fund production www.cninfo.com.cn and

28 2025 Shanghai other Mechanism Suzaku Fund etc and the interactive website of

operation the Shenzhen Stock

Exchange's website

The survey results are

Online Investors participating Company published on

September communication in the production www.cninfo.com.cn and

19 2025 p5w.net on network other "Panorama · Roadshow and the interactive website of

platform World" interaction operation the Shenzhen Stock

Exchange's website

October Company Telephone Mechanism Gf Securities E Fund Interpretation The survey results are

48The main

content of

Reception Reception Reception the Reception Reception object discussion Basic Information Index time location object type and the of the Survey

information

provided

19 2025 meeting communication etc of the published on

room company's www.cninfo.com.cn and

third quarter the interactive website of

results the Shenzhen Stock

Exchange's website

XIII. Formulation and implementation of market value management system and valuation

enhancement plan

Whether the company has established a market value management system.□Yes □ No

Has the company disclosed its valuation enhancement plan

□Yes □No

The Company formulated the Market Value Management System in December 2024 and revised

it at the first meeting of the seventh board of directors on June 16 2025. The main purpose of market

value management is to enhance the company's transparency through fully compliant information

disclosure guide the company's market value and intrinsic value to converge and at the same time

use capital operation equity management investor relationship management and other means to fully

realize the company's value establish a stable and high-quality investor base and obtain long-term

market support.XIV. Implementation of the "Quality and Return Double Improvement" Action Plan

Has the company disclosed the announcement of the action plan for "double improvement of

quality and return"

□Yes □ No

In order to thoroughly implement the important instructions of "To activate the capital market

and boost investor confidence" put forward by the Political Bureau of the Central Committee meeting

and "To vigorously improve the quality and investment value of listed companies and to take more

49effective and effective measures to stabilize the market and stabilize confidence" put forward by the

executive meeting of the State Council the company has always practiced the concept of high-quality

sustainable development while sticking to its original intention and taking root in agricultural

development and has continuously improved the company's operational development quality

investment value and sustainable development level. In order to safeguard the interests of all

shareholders of the company enhance investor confidence and promote the stable development of

the capital market the company formulated the action plan for "Double Improvement of Quality and

Return" on March 7 2024. For details please refer to the "Announcement on Promoting the Action

Plan for" Double Improvement of Quality and Return "disclosed in the company's designated

information disclosure media (Announcement No.: 2024-017). For the implementation and progress

of the action plan please refer to the relevant announcements disclosed in the company's designated

information disclosure media "Securities Times" "China Securities Journal" "Shanghai Securities

News" "Securities Daily" and www.cninfo.com.cn (http://www.cninfo.com.cn).

50Section 4 Corporate Governance Environment and Society

I. The basic situation of corporate governance

1. The establishment of the company system

From the company's listing to the end of the reporting period the company has continuously

improved the company's internal corporate governance structure optimized the internal control

environment improved the internal management system and standardized the operation of the

company in strict accordance with the "Company Law" "Securities Law" "Shenzhen Stock

Exchange Stock Listing Rules" "Shenzhen Stock Exchange Self-Regulatory Supervision Guidelines

No. 1 — Standardized Operation of Listed Companies on the Main Board" and other relevant laws

regulations normative documents and articles of association Efforts to improve the level of corporate

governance. The actual situation of corporate governance complies with the requirements of the

relevant normative documents of the China Securities Regulatory Commission and the Shenzhen

Stock Exchange on the governance of listed companies.

2. About shareholders and shareholders meeting

During the reporting period the company strictly followed the "Company Law" "Articles of

Association" "Rules of Procedures for Shareholders' Meetings" and other laws and regulations and

the requirements of the internal control system to standardize the convening convening and voting

procedures of shareholders' meetings ensure that all shareholders enjoy equal status fully exercise

their rights and ensure the legality of the meeting and voting procedures by hiring lawyers to witness

and safeguard the legitimate rights and interests of the company and shareholders. A total of five

shareholder meetings will be held in 2025 all of which will be convened by the board of directors;

the convening convening and voting procedures of the shareholder meeting have been witnessed by

witnessing lawyers and all are legal and valid.

3. About directors and the board of directors

The company elects and appoints directors in strict accordance with the "Company Law"

"Articles of Association" "Rules of Procedure of the Board of Directors" and "Independent Director

System". The selection and appointment procedures of directors are open fair and just and the

51composition and number of directors meet the requirements of laws and regulations. During the

reporting period the company implemented the general election of the board of directors. The

members of the seventh board of directors of the company were nominated and recommended in

accordance with relevant regulations reviewed by the board of directors and elected by the

cumulative voting system. There are currently 7 directors including 3 independent directors.Independent directors account for more than one-third of all directors and their qualifications meet

the relevant requirements of the "Administrative Measures for Independent Directors of Listed

Companies".All directors of the company perform their duties in strict accordance with relevant laws

regulations and normative documents attend all board meetings and carry out related work in a

serious and responsible manner and strictly abide by the directors' statements and commitments.Independent directors strictly follow the relevant requirements of independence conduct self-

examination on independence every year and the board of directors of the company evaluates the

independence of incumbent independent directors and issues special opinions.The board of directors has an audit committee and a strategy committee and each committee can

perform its functions in accordance with its working rules and make due contributions to the

standardization of corporate governance. The board of directors can carry out its work in strict

accordance with relevant laws and regulations. All directors of the company are honest trustworthy

diligent and responsible attend board meetings and shareholders' meetings conscientiously actively

participate in relevant training and are familiar with relevant laws and regulations.

4. About the internal audit system

The company has established a sound internal audit system and set up an internal audit

department to conduct effective internal supervision over the company's daily operations.

5. About stakeholders

The company fully respects and safeguards the legitimate rights and interests of stakeholders

realizes the coordination and balance of the interests of society shareholders the company

employees etc. treats suppliers and customers with integrity earnestly trains every employee

52adheres to the principle of mutual benefit and win-win with stakeholders and jointly promotes the

company's sustainable healthy and rapid development.

6. Information disclosure and transparency

The company strictly complies with the relevant laws and regulations and the requirements of

the company's "Information Disclosure System" and "Investor Relations Management System" to

disclose information truthfully accurately completely and in a timely manner to ensure that all

shareholders have equal opportunities to obtain information.The chairman of the board assumes primary responsibility for the management of the company's

information disclosure affairs. The company appoints the secretary of the board of directors to be

responsible for organizing and coordinating the management of the company's information disclosure

affairs and investor relations. The Securities and Investment Center is the executive department of

information disclosure affairs and investor relations management. The company pays attention to

communication with investors and strengthens communication with investors through various

methods such as telephone email and investor relations interactive platform.The company's information disclosure work has been assessed by the Shenzhen Stock Exchange

as the highest level A (excellent) for 15 consecutive years from 2010 to 2024.

7. About investor relations management

The company has always attached great importance to the management of investor relations and

carried out relevant work in accordance with the requirements of the "Investor Relations Management

System" and other systems. It implemented investor relations management in various forms such as

the Shenzhen Stock Exchange's investor relations interactive platform investor hotline and receiving

investor visits strengthened communication with investors and fully guaranteed the majority of

investors' right to know.Corporate governance is a systematic and long-term project that requires continuous

improvement. After the company is successfully listed it is willing to accept the supervision of all

parties adhere to the scientific development concept continuously improve the corporate governance

system strengthen the practice of various laws and regulations promote the healthy development of

the company and improve the overall competitiveness.

538. About inside information management

According to the "Company Law" "Securities Law" "Shenzhen Stock Exchange Stock Listing

Rules" and other relevant laws and regulations and the relevant provisions of the "Articles of

Association" the company has formulated the "Registration Management System for Insiders with

Inside Information". In strict accordance with the requirements of the relevant system the company

does a good job in the registration and filing of insider information and can truthfully record and

disclose the report transmission preparation resolution disclosure and other links of insider

information before the disclosure of insider information and the list of insiders and the progress of

major events. Memorandum. During the reporting period the company did not have any insider

information illegally buying or selling the company's stock and no relevant personnel were suspected

of insider trading and were subject to regulatory measures and administrative penalties by the

regulatory authorities.Are there any significant differences between the actual status of corporate governance and laws

administrative regulations and the regulations on corporate governance of listed companies issued by

the China Securities Regulatory Commission

□Yes □No

There is no major difference between the actual status of corporate governance and laws

administrative regulations and the regulations on listed company governance issued by the China

Securities Regulatory Commission.II. The company's independence from the controlling shareholder and actual controller in

guaranteeing the company's assets personnel finance organization business etc

The company has independent and complete business and independent operation capabilities

and is completely independent of the controlling shareholder in terms of assets personnel finance

organization and business.

1. In terms of assets the company has a clear property rights relationship with the controlling

shareholder has independent land use rights housing property rights and independently registers

builds accounts accounts and manages the company's assets. The controlling shareholder has no

54non-operating occupation dominates the company's assets or interferes with the company's operation

and management of the assets.

2. In terms of personnel the company has established an independent personnel system. The

controlling shareholders exercise their rights and undertake corresponding obligations in accordance

with the law. There is no occurrence of affecting the appointment and removal of personnel of listed

companies or restricting the performance of duties by directors senior managers or other personnel

of listed companies by exercising shareholder rights other than those stipulated by laws and

regulations.

3. In terms of finance the company has a complete and independent financial institution

equipped with sufficient full-time financial personnel established an independent accounting system

and financial management system independently opened bank accounts independently paid taxes

independently allocated funds and made independent financial decisions. There is no situation where

the controlling shareholder interferes with the financial management of the company.

4. In terms of organization various functional departments within the company's board of

directors can operate independently and there is no subordinate relationship with the internal

organization of the controlling shareholder and there is no direct or indirect interference in the

company's decision-making and business activities by the controlling shareholder beyond the

shareholders' meeting.

5. In terms of business the controlling shareholder has an independent and complete business

structure and has the business ability to face the market independently and operate independently.There is no competition with the company in terms of business scope business nature customer

targets product substitutability etc.; there is no situation in which the controlling position of the

company is used to seek business opportunities belonging to the company; there is no situation in

which major decisions about the listed company are directly made on behalf of the shareholders

meeting and the board of directors and interfere with the normal decision-making procedures of the

listed company.

55III. Horizontal competition

□ Applicable □Not Applicable

IV. Directors and Senior Management

1. Basic information

The

Numbe The numb

r of numb er of

shares er of share

Numbe

r of Reaso

held at share s s held reduc Other shares

ns for

Employ Term Term the chang held at the

Name Sex Age Position ment start end beginni

in the ed in increa

status date date ng of curre the

es the end

nt curre (share of the

se or

the perio nt s) period

decrea

period se of

(shares d perio

(shares shares

) (shar d

)

es) (shar

es)

June June

Chairman Incumbent 06 15 Xue Male 56 2007 2028 Hua Incumbe May June

President nt 25 15 2010 2028

Co-

Chairman Incumbe June June

Xu of the nt 06 15

Yingzhu Male 58 Board 2007 2028

o Vice- Incumbe June June

President nt 16 15 2025 2028

Employee

Representa Incumbe Februar June

tive nt y 03 15

Director 2021 2028

Qian Male 59 Vice- Incumbe July 16 June 25570 25570Xueqiao President nt 2019 15 0 0 2028

Chief Incumbe January June

engineer nt 22 15 2008 2028

June June

Director Incumbe

Shen nt

1615

Male 48 2025 2028 Dong Septem June

Supervisor Outgoing ber 14 16

20232025

Yin Independe Incumbe June June

Zhan Male 61 nt director nt 16 15 2025 2028

Tan Jin Male 61 Independe Incumbe

June June

Song nt director nt 16 15 2025 2028

Li Male 63 Independe Incumbe June June Chunho nt director nt 16 15

56The

Numbe The numb

r of numb er of

shares er of share

Numbe Reaso

held at share s

r of ns for

Employ Term Term the s held reduc

Other shares the

Name Sex Ag Position ment start end beginni in the ed in

chang held at

e curre the es the end

increa

status date date ng of se or

the nt curre

(share of the

s) period decrea

period perio nt se of

(shares d perio

(shares

) shares

) (shar d es) (shar

es)

u 2025 2028

Gui Male 70 Independe Outgoing July 16

January

Jianfang nt director 2019 09 2025

He Independe July 16 June

Jianguo Male 64 nt director Outgoing 2019 16 2025

Liu Male 60 Independe Outgoing July 16

June

Yunguo nt director 2019 16 2025

Gao Fema Independe January June

Zexia le 44 nt director Outgoing 09 16 2025 2025

Director Outgoing July 16

June

2019 16 Cheng Male 46 2025 Qi 52500 52500 Vice- Incumbe July 16 June

President nt 2019 15 2028

Liu

Guoxian Male 57 Vice- Incumbe July 16

June 15207

President nt 2019 15 0

15207

g 2028 0

Vice- Incumbe July 16 June

Yang President nt 2019

15

Male 52 2028 33090 33090Shaolin Financial Incumbe October June 0 0

Controller nt 22 15 2012 2028

Chen June June

Mingzh Male 61 Vice- Incumbe 06 15

ong President nt 2007 2028

Jiang Male 58 Vice- Incumbe July 16

June

Xiewu President nt 2019 15 50180 50180 2028

Mi June

Guoche Male 54 Vice- Incumbe July 16 18210 18210

ng President nt 2019

15

202800

Chen

Zhongz Male 56 Vice- Incumbe July 16

June

15 14157President nt 2019 0

14157

hu 2028 0

Huo Februar June

Quanwe Male 51 Vice- IncumbePresident nt y 05 15 n 2024 2028

Zhang Februar Novem

Guijun Male 52

Vice-

President Outgoing y 05 ber 26 2024 2025

Lu Male 49 Vice- Incumbe

Februar June

Xuezhi President nt y 05 15 52260 52260 2024 2028

Hou June June

Huaping Male 52 Vice- Incumbe

[Note] President nt

1615

20252028

57The

Numbe The numb

r of numb er of

shares er of share

Numbe Reaso

held at share s

r of

Other shares ns for

Ag Employ Term Term the

s held reduc chang held at the

Name Sex e Position ment start end beginni

in the ed in es the end increa

status date date ng of curre the se or

the nt curre

(share of the decrea

period perio nt

s) period

d perio (shares

se of

(shares shares

) (shar d

)

es) (shar

es)

Yang Vice- August Novem

Jiantao Male 57 President Outgoing 19 ber 26 2022 2025

Wang Fema Vice- Incumbe August June

Jing le 47 President nt 19 15 8700 8700 2022 2028

Vice- Incumbe July 26 June 15

Huang President nt 2012 Male 48 2028 41224 41224Zhijian Board Incumbe July 26 June 4 4

secretary nt 2012 15 2028

Wang Novem June

Hua Male 39 Supervisor Outgoing ber 16 16 2020 2025

Mu June

Yongfan Female 37 Supervisor Outgoing

July 16

g 2019

16

2025

Total -- -- -- -- -- -- 16382 0 0 0 1638224 24 --

Note: The number of shares held by Mr. Hou Huaping at the beginning of the period refers to the

shareholding situation on the day the company appointed him as vice president (June 16 2025).Whether there were any resignations of directors and senior management during the reporting

period

□Yes □ No

For details please refer to "Changes in Directors and Senior Management of the Company" in this

section.Changes in the company's directors and senior management

□Applicable □ Not applicable

Name Position held Type Date Reason

Gui Jianfang Independent director Outgoing January 09 2025 Personal reasons

Cheng Qi Director Resignation at the end of the term June 16 2025 Change of term

He Jianguo Independent director Resignation at the end of the term June 16 2025 Change of term

58Name Position held Type Date Reason

Liu Yunguo Independent director Resignation at the end of the term June 16 2025 Change of term

Gao Zexia Independent director Resignation at the end of the term June 16 2025 Change of term

Shen Dong Supervisor Resignation at the end of the term June 16 2025 Change of term

Wang Hua Supervisor Resignation at the end of the term June 16 2025 Change of term

Mu Yongfang Supervisor Resignation at the end of the term June 16 2025 Change of term

Zhang Guijun Vice-President Dismissal November 26 2025 Job transfer

Yang Jiantao Vice-President Dismissal November 26 2025 Job transfer

2. Employment

The professional background main work experience and current main responsibilities of the

company's current directors and senior managers

(1) Director

Mr. Xue Hua born in 1970 master degree engineer. In 1992 he graduated from the Fisheries

College of Huazhong Agricultural University majoring in special aquaculture; in 1995 he received

a master's degree in zoology from the School of Life Sciences Sun Yat-sen University. He has

successively served as the vice chairman of Guangdong Rural Revitalization Promotion Association

the vice chairman of Guangdong Feed Industry Association the vice chairman of Guangdong

Agricultural Industrialization Leading Enterprise Association the vice chairman of Guangdong High-

tech Enterprise Association the vice chairman of the 16th Executive Committee of Guangzhou

Federation of Industry and Commerce the vice chairman of Guangzhou Charity Association the

honorary chairman of Guangzhou Feed Industry Association and the executive vice chairman of

Guangzhou Guangdong-Hong Kong-Macao Greater Bay Area Enterprise Integrity and Compliance

Management Association. It has successively won the titles of "Leading Figure of Chinese Feed

Enterprises" "Thirty Outstanding Entrepreneurs in China" and "Top Ten Economic Figures in

Guangdong". One of the founders of the company he is currently the chairman and president of the

company and the executive director of Guangzhou Haihao Investment Co. Ltd. the controlling

shareholder of the company. Mr. Xue Hua holds 39.75% of the equity of Guangzhou Haihao

Investment Co. Ltd. the controlling shareholder of the company and is the actual controller of the

company.

59Mr. Xu Yingzhuo born in 1968 is an animal pastor. In 1991 he graduated from South China

Agricultural University majoring in animal husbandry with a bachelor's degree and later obtained a

master's degree in business administration from HEC Business School in Paris. One of the founders

of the company he is currently the co-chairman and vice president of the company.Mr. Qian Xueqiao born in 1967 holds a doctorate degree. He has presided over or participated

in the Hubei Provincial Natural Science Foundation project "Development and Utilization of Feather

Protein in Fishery Feed" the development project of the State Key Laboratory of Freshwater Ecology

and Biotechnology "Effects of Nutritional Levels and Nutritional History on Fish Growth and

Activities Research on Feeding Behavior and Chemical Sensation of Allogeneic Crucian Carp

Research on Utilization of Plant Protein by Major Freshwater Farmed Fish" The National Natural

Science Foundation of China project "Comparative Nutritional Energy Research on Feed Protein

Requirements for Carnivorous Fish and Omnivorous Fish" and the Ministry of Agriculture's 948

project "Artificial Propagation and Large-scale Breeding of Keynose Sturgeon" etc. have published

more than 20 papers three of which have been published in international journals and included in

SCI. The company is mainly engaged in aquatic animal nutrition and feed science research and the

development of new feed additives. He has been the chief engineer of the company since 2008 the

vice president of the company since 2019 and the director of the company since 2021. He is currently

the employee representative director of the company.Mr. Shen Dong born in 1978 holds a master's degree and graduated from Sun Yat-sen

University majoring in law. Joined the company in 2021 served as a supervisor of the company from

2023 to 2025 and has been a director of the company since 2025.

Mr. Yin Zhan born in 1965 has a PhD in Zoology from the National University of Singapore

a professor at the Fisheries College of Ocean University of China and a professor at the Shenzhen

Research Institute of Ocean University of China. He used to be the director of the Institute of

Hydrobiology Chinese Academy of Sciences and the director of the State Key Laboratory of

Freshwater Ecology and Biotechnology. He was funded by the Outstanding Youth Fund of the

National Natural Science Foundation of China. He has been selected as a leader of the innovation

team in the key field of "Fish Biology and Biotechnology" of the Ministry of Science and Technology

a national expert on outstanding contributions to young and middle-aged people and the "Ten

Thousand Talents Program" of the Organization Department of the Central Committee. He is

60currently the vice chairman of the Chinese Society of Oceans and Limnology as well as the deputy

editor-in-chief and editorial board member of 5 SCI journals including Engineering. He has long been

engaged in the research of animal molecular developmental biology and fish endocrine regulation.He has presided over 2 national key research and development projects and 2 key projects of the

National Natural Science Foundation of China. He has published nearly 70 first or corresponding

author articles in international academic journals such as Nat. Med. PNAS Science Bulletin

Engineering etc. and has been cited more than 3000 times by SCI source articles. He won 1 first

prize of the 2022 Ministry of Education Natural Science Award (ranked third by individuals) and 5

Chinese invention patents were authorized. Currently serving as an independent director of the

company.Mr. Tan Jinsong born in 1965 Han nationality member of the Communist Party of China

doctor of management (accounting) is currently a professor at the School of Management of Sun

Yat-Sen University director of the Modern Accounting and Finance Research Center of Sun Yat-Sen

University vice president of Guangdong Institute of Certified Public Accountants president of

Guangzhou Internal Audit Association chairman of the Independent Board Committee of Guangdong

Association of Listed Companies chairman of the Audit Committee of Listed Companies of

Guangdong Association of Listed Companies etc.; He is currently an independent director of the

company and an independent director of the domestic Jsti Group (300284. SZ).Mr. Li Chunhou born in 1963 holds a Bachelor of Science degree in Zoology from Sun Yat-

sen University a national outstanding aquatic science and technology worker and a second-level

researcher. He has long been engaged in fishery resource conservation fishery ecological

environment protection and circulating aquaculture research and won the second prize of National

Marine Innovation Achievement the third prize of Shennong Chinese Agricultural Science and

Technology the first prize of Guangdong Science and Technology the second prize of Guangdong

Science and Technology and the third prize of Guangdong Science and Technology. He is currently

a researcher at the South China Sea Fisheries Research Institute of the Chinese Academy of Fishery

Sciences an executive director of the Chinese Fisheries Society a chairman of the Fisheries

Resources and Environment Branch of the Chinese Fisheries Society a member of the National

Fisheries Standardization Technical Committee a chairman of the Fisheries Resources Sub-

Technical Committee a vice chairman of the Marine Ecological Security Professional Committee of

61the Chinese Society of Environmental Sciences a vice chairman of the Guangdong Provincial Union

of Field Science Observation and Research Stations and a director of the Guangzhou Representative

Office of the China Fisheries Circulation and Processing Association. Currently serving as an

independent director of the company.

(2) Senior management

Mr. Cheng Qi born in 1980 holds a master's degree. He graduated from Huazhong University

of Science and Technology in 2002 with a major in automation; from 2005 to 2008 he studied at Sun

Yat-sen University with a master's degree in world economics; from 2013 to 2015 he studied at China

Europe International Business School with an EMBA and obtained a master's degree in business

administration. From 2002 to 2010 he served as process engineer operation manager supply chain

manager and technical director in Guangzhou Procter & Gamble & Gamble Co. Ltd. From 2010 to

2017 he served as operation director of East Asia Pacific and global supply chain director in Esol

Packaging Co. Ltd. He joined the company in 2017 served as a director of the company from 2019

to 2025 and has been the company's vice president since 2019.Mr. Liu Guoxiang born in 1969 bachelor degree graduated from Huazhong Agricultural

University in 1992 majoring in special aquatic products. He joined the company in 2004 and has

been the company's vice president since 2019.Mr. Yang Shaolin born in 1974 graduated from Sun Yat-sen University majoring in business

administration with a master's degree EMBA of China Europe International Business School senior

accountant certified public accountant and certified tax agent. From 2008 to 2012 he served as

Executive Director Chief Financial Officer and Joint Secretary of KEE Holdings Limited

(HK.02011). He was selected into the high-tech enterprise evaluation expert database of the

Guangdong Provincial Department of Science and Technology and served as the vice president of

the Guangdong Association of Management Accountants. Since June 2016 he has served as an off-

campus tutor for the Master of Accounting in the School of Management of Sun Yat-Sen University.Since January 2026 he has served as an off-campus industry tutor for MBA MPAcc and Maud of

Sun Yat-Sen University. Since 2021 he has been a master tutor for accounting in Guangdong

University of Foreign Studies. He joined the company in 2012 and has been the company's chief

financial officer since 2012 and has been the company's vice president since 2019.

62Mr. Chen Mingzhong born in 1965 master degree. He is currently the vice president of

Guangzhou Agricultural Leading Enterprise Association the vice president of the Standing

Committee of Guangzhou Panyu District Federation of Industry and Commerce the vice president

of Guangzhou Sanhui (Guangzhou Federation of Industrial Economics etc.) and the executive vice

president of Nancun General Chamber of Commerce in Panyu District Guangzhou. He was awarded

the honorary title of "Excellent Entrepreneur of Caring for Employees in Panyu District Guangzhou".He joined the company in 2004 and has been the company's vice president since 2007.Mr. Jiang Xiewu born in 1968 bachelor degree aquaculture engineer the first batch of rural

craftsman professionals in Guangdong Province (senior title). In 1992 he graduated from the

Fisheries College of Huazhong Agricultural University majoring in special aquatic products. He

served as the vice president of China Fisheries Association the executive president of the first council

of the Aquatic Seedling Branch of China Fisheries Association and the honorary president of

Weifang Fisheries Association. He joined the company in 2004 served as a director of the company

from 2007 to 2016 and served as the company's vice president from 2010 to 2016 and since 2019.Mr. Mi Guocheng born in 1972 bachelor degree graduated from Southwest Agricultural

University majoring in freshwater fishery. He joined the company in 2010 and has been the company's

vice president since 2019.Mr. Chen Zhongzhu born in 1970 holds a master's degree. He joined the company in 2004 and

has been the company's vice president since 2019.Mr. Huo Quanwen born in 1974 is studying for an MBA from Cheung Kong Graduate School

of Business. He joined the company in 2012 and has been the company's vice president since 2024.Mr. Lu Xuezhi born in 1977 holds a master's degree from China Europe International Business

School. He joined the company in 2010 and has been the company's vice president since 2024.Mr. Hou Huaping born in 1974 bachelor degree graduated from Guangdong Ocean University.He joined the company in 2004 and has been its vice president since 2025.Ms. Wang Jing born in 1979 graduated from the University of Science and Technology of

China majoring in management science in 2001. From 2006 to 2008 she studied MBA at Cheung

Kong Graduate School of Business and obtained a master's degree in business administration. From

2001 to 2006 he successively worked in IFLYTEK Co. Ltd. Shenzhen Bohua Consulting Co. Ltd.

63and Tencent Technology Co. Ltd. From the beginning of 2008 to 2010 he worked as a consultant in

IBM China. He joined the company in 2012 and has been the company's vice president since 2022.Mr. Huang Zhijian born in 1978 accountant bachelor degree. He joined the company in 2004

and has been the company's vice president and secretary of the company's board of directors since

2012.

The controlling shareholder and actual controller serve as the chairman and general manager of the

listed company at the same time

□Applicable □ Not applicable

The actual controller of the company Mr. Xue Hua is one of the founders of the company. He

also serves as the director of Guangzhou Haihao Investment Co. Ltd. the controlling shareholder of

the company and the chairman and president of the company. He has rich experience in corporate

management and industry resources. The controlling shareholder of the company is only an

investment platform company and has not carried out substantial business operations. It will not

distract Mr. Xue Hua from performing his duties in the company nor will it affect his diligence and

due diligence in the company. In addition Mr. Xue Hua serves as the chairman and president of the

company at the same time which can ensure the company's efficient and unified development strategy

and business decision-making. His appointment is a reasonable arrangement for the company's

current business development and complies with the relevant provisions of the Company Law and

the Articles of Association. The company has formulated relevant internal control systems such as

the Articles of Association the Working Rules of the President and the Management System of

Related Parties and Related Party Transactions which reasonably and clearly stipulate the functions

and powers of the board of directors and the president ensure standardized corporate governance and

independent operation and effectively safeguard the legitimate rights and interests of all shareholders

especially small and medium shareholders.Serving in shareholder units

□Applicable □ Not applicable

Whether to receive

Name of Name of Positions held in remuneration

incumbent shareholder unit shareholder units Term start date Term end date allowance in the

shareholder unit

64Guangzhou

Xue Hua Haihao Investment Director September 27 2006 No Co. Ltd

Guangzhou

Xu Yingzhuo Haihao Investment Manager December 01 March 19 2025 Yes

Co. Ltd 2021

Guangzhou

Qian Xueqiao Haihao Investment Supervisor December 01

Co. Ltd 2021

No

Description of the Mr. Xu Yingzhuo continued to engage in other work in the shareholder unit after he resigned as the manager

position in the of the shareholder unit on March 19 2025; Mr. Xu Yingzhuo was appointed as the vice president of the

shareholder unit company in June 2025. After taking office he did not hold any position in the shareholder unit and did not receive remuneration allowance.Serving in other units

□Applicable □ Not applicable

Whether to

Name of receive

incumbent Other unit names

Positions held

in other units Term start date Term end date remuneration allowance in

other units

Guangdong Airport City

Investment Co. Ltd Director January 21 2015 No

Guangzhou Huading

Xue Hua Investment Holdings Co. Supervisor May 19 2022 No

Ltd

Guangzhou Huayu

Investment Co. Ltd Director December 14 2021 No

Guangdong Haihaowan

Development Co. Ltd Chairman April 22 2020 No

Guangzhou Yanling

Investment Development Executive

Xu Co. Ltd Director

June 02 2021 No

Yingzhuo Guangzhou Yuyi Investment

Development Co. Ltd Supervisor June 04 2021 No

Guangzhou Yansheng

Investment Holdings Co. Executive Director June 08 2021 No Ltd

Guangzhou Huayu

Qian Investment Co. Ltd Supervisor December 14 2021 No

Xueqiao Guangzhou Qingyuan Executive

Investment Co. Ltd Director February 25 2022 No

School of Fisheries Ocean

University of China Professor November 28 2024 Yes Yin Zhan Shenzhen Research Institute

of Ocean University of China Professor November 28 2024 Yes

Sun Yat-sen University Professor June 01 2002 Yes

COSCO Shipping

Tan Jin Specialized Carriers Co. Independent December 06 2018 September 25

Song Ltd. director 2025

Yes

Jsti Group Independent director January 16 2026 Yes

Liu Guangzhou Qingyuan

Guoxiang Investment Co. Ltd Supervisor February 25 2022 No

Sun Yat-sen University Master's Off-campus Tutor June 05 2016 June 05 2028 Yes

Guangdong University of

Yang Foreign Studies Master Tutor January 01 2025 January 01 2030 No

Shaolin Guangdong Association of

Management Accountants Vice President October 01 2021 October 01 2027 No

Sun Yat-sen University Off-campus industry mentor January 17 2026 December 31 2028 Yes

65Jiang Guangzhou Haishengyuan Executive

Xiewu Investment Co. Ltd Director January 27 2022 No

Executive

Linyi Jiajun Management Director

Consulting Co. Ltd General April 26 2020 No

Huo Manager

Quanwen Executive

Linyi Haiding Management Director

Consulting Co. Ltd General April 29 2015 No

Manager

Description

of

employment Not applicable.in other

units

Punishment by securities regulatory authorities of the company's current and resigned directors and

senior executives in the past three years during the reporting period

□ Applicable □Not Applicable

3. Remuneration of directors and senior management

Decision-making procedures basis for determination and actual payment of remuneration for

directors and senior executives

The company has formulated the "Remuneration and Appraisal Management System for

Directors and Senior Managers" in accordance with national laws and regulations and in light of its

own actual conditions. As the highest authority of the company the shareholders' meeting is

responsible for reviewing and approving the implementation change and termination of the

remuneration system. The company has formulated the "Remuneration Plan for Directors and Senior

Management": independent directors adopt an annual allowance system with an allowance standard

of 180000 yuan per year; non-independent directors do not receive director allowances from the

company and non-independent directors who concurrently hold senior management or core positions

are paid according to the salary standard of senior management or core positions; the remuneration

of directors and senior management who concurrently hold core positions consists of basic salary

performance salary and medium and long-term incentives.Remuneration of directors and senior management during the reporting period

Unit: ten thousand yuan

Total pre-tax Whether to get

Name Sex Age Position Employment compensation paid from the status received from the company's

company affiliates

66Xue Hua Male 56 Chairman President Incumbent 406.09 No

Xu Yingzhuo Male 58 Co-Chairman Vice President Incumbent 51.64 Yes

Employee Representative

Qian Xueqiao Male 59 Director Vice President Incumbent 210.29 No

Chief Engineer

Director Incumbent

Shen Dong Male 48 179.38 No

Supervisor Outgoing

Yin Zhan Male 61 Independent director Incumbent 9.75 No

Tan Jin Song Male 61 Independent director Incumbent 9.75 No

Li Chunhou Male 63 Independent director Incumbent 9.75 No

Gui Jianfang Male 70 Independent director Outgoing 0.39 No

He Jianguo Male 64 Independent director Outgoing 8.25 No

Liu Yunguo Male 60 Independent director Outgoing 8.25 No

Gao Zexia Female 44 Independent director Outgoing 7.86 No

Cheng Qi Male 46 Vice-President Incumbent 221.67 No

Liu Guoxiang Male 57 Vice-President Incumbent 197.94 No

Yang Shaolin Male 52 Vice President Chief Financial Officer Incumbent 456.5 No

Chen

Mingzhong Male 61 Vice-President Incumbent 62.49 No

Jiang Xiewu Male 58 Vice-President Incumbent 198.99 No

Mi Guocheng Male 54 Vice-President Incumbent 196.94 No

Chen

Zhongzhu Male 56 Vice-President Incumbent 179.87 No

Huo Quanwen Male 51 Vice-President Incumbent 247.78 No

Zhang Guijun Male 52 Vice-President Outgoing 119.44 No

Lu Xuezhi Male 49 Vice-President Incumbent 167.67 No

Hou Huaping Male 52 Vice-President Incumbent 87.51 No

Yang Jiantao Male 57 Vice-President Outgoing 79.62 No

Wang Jing Female 47 Vice-President Incumbent 216.39 No

Huang Zhijian Male 48 Vice President Secretary of the Board Incumbent 194.67 No

Wang Hua Male 39 Supervisor Outgoing 39.73 No

Mu Yongfang Female 37 Supervisor Outgoing 25.54 No

Total -- -- -- -- 3594.15 --

Note: 1. The remuneration amount of new and outgoing directors supervisors and senior executives

during the reporting period is the amount of remuneration they received during their tenure during

the reporting period. For the term of office of each director supervisor and senior management during

the reporting period please refer to "IV. 1 Basic Information" in this chapter.

2. The above table does not include the total amount of operating profit sharing and special bonuses

paid and distributed by the 16 vice presidents of the company in 2025 totaling RMB 94607200.

3. Mr. Xu Yingzhuo will not receive remuneration from affiliated companies from June 17 2025.

67It is decided in accordance with the company's "Directors and

The assessment basis for the actual remuneration of all Senior Management Remuneration and Appraisal Management

directors and senior management at the end of the reporting System" and related systems combined with the company's

period performance realization and the contribution of the employees

to the company's operation and management.The completion of the assessment of the actual remuneration of

all directors and senior management at the end of the reporting Finished

period

Deferred payment arrangements for the actual remuneration of

all directors and senior management at the end of the reporting No

period

Stop payment recourse for all directors and senior management

actually received remuneration at the end of the reporting No

period

Other information

□ Applicable □Not Applicable

V. Directors' performance of duties during the reporting period

1. Directors' attendance at the board of directors and shareholders' meeting

Directors' attendance at the board of directors and shareholders' meeting

The number of

times you

should Number of Number Whether to fail to

Director's participate in

On-site Participation in of

the board of attendance the Board of

entrusted absences attend board Number of

name at the board Directors by attendance from the meetings in shareholders' directors of directors Correspondence at the board board of person for two meetings during the of directors directors consecutive times reporting

period

Xue Hua 7 7 0 0 0 No 4

Xu

Yingzhuo 7 4 3 0 0 No 3

Qian

Xueqiao 7 4 3 0 0 No 2

Shen Dong 5 4 1 0 0 No 2

Yin Zhan 5 1 4 0 0 No 3

Tan Jin

Song 5 1 4 0 0 No 3

Li

Chunhou 5 4 1 0 0 No 3

Cheng Qi 2 2 0 0 0 No 2

He Jianguo 2 1 1 0 0 No 2

Liu

Yunguo 2 1 1 0 0 No 3

Gao Zexia 2 1 1 0 0 No 3

Gui

Jianfang 0 0 0 0 0 No 2

Explanation of failing to attend the board of directors in person for two consecutive times

68During the reporting period there was no situation in which the company failed to attend the

board of directors in person for two consecutive times.

2. Directors' objections to the company's related matters

Whether the directors raise objections to the company's related matters

□Yes □No

During the reporting period the directors did not raise any objections to the company's relevant

matters.

3. Other explanations for directors to perform their duties

Whether the directors' recommendations on the company have been adopted

□Yes □ No

Directors' statement on whether the company's proposal was adopted or not adopted

During the reporting period all directors of the company carried out their work in strict

accordance with the "Company Law" "Shenzhen Stock Exchange Stock Listing Rules" and other

laws and regulations as well as the "Articles of Association" "Rules of Procedures of the

Shareholders' Meeting" "Rules of Procedures of the Board of Directors" and other company systems.They were faithful diligent and responsible. According to the actual situation of the company they

put forward relevant opinions on the company's major governance and business decisions. After full

communication and discussion they reached a consensus. And resolutely supervise and promote the

implementation of the resolutions of the board of directors ensure that the decision-making is

scientific timely and efficient and safeguard the legitimate rights and interests of the company and

all shareholders.

69VI. The status of the special committees under the board of directors during the reporting

period

Number Important

Committee of comments Other

Details

of the

name Membership meetings Date Meeting content and performance

held suggestions of duties

objection

made (if any)

2024 Annual Periodic

Report on Financial

Information Internal

April 18 2025 Control Evaluation - No No

Report and Review

Opinions on Impairment

Audit Liu Yunguo

Provisions

He Jianguo 3 Financial Report and Committee Gao Zexia April 18 2025 Internal Audit Report for - No No the First Quarter of 2025

Review the

qualifications for

June 13 2025 appointing the chief financial officer and the - No No

person in charge of

internal audit

2025 semi-annual

July 23 2025 financial report and internal audit report; hire - No No

2025 audit agency

Tan Jinsong October 16 2025 third quarter report

Audit Li 2025 and internal audit report

- No No

Committee Chunhou 4 December 30

Shen Dong 2025 2025 Annual Audit Plan - No No

The company's 2025

December 30 internal audit work

2025 report and 2026 internal - No No

audit work plan

Nominate non-

independent directors

May 23 2025 and independent directors of the seventh - No No

Nomination He Jianguo board of directors of the

Committee Liu Yunguo 2 company Cheng Qi Review the

qualifications for

June 13 2025 appointing senior - No No

management personnel

of the company

2021 stock options do

not meet the exercise

conditions and are

cancelled; 2024 stock

options do not meet the

exercise conditions and

Remuneration Liu Yunguo are cancelled; the

and Appraisal He Jianguo 2 April 18 2025 company's 2021 stock

Committee Qian option incentive plan and

- No No

Xueqiao some stock options of the

2024 stock option

incentive plan are

cancelled; the

performance evaluation

indicators for the first

vesting period of the

70Number Important Details

Committee Membership of

comments Other

name meetings Date Meeting content and performance

of the

held suggestions of duties

objection

made (if any)

2024 employee stock

ownership plan are not

reached

Proposal on Amending

the "Remuneration

Management System for

Directors Supervisors

May 29 2025 and Senior Executives" and changing its name to No No

"Remuneration

Management System for

Directors and Senior

Executives"

Xue Hua

Strategy Xu Securities and Futures

Committee Yingzhuo 1 April 18 2025 and Derivatives Trading - No No

Gao Zexia Solutions

Xue Hua July 25 2025 Hedging scheme - No No

Strategy Xu The plan to spin off

Committee Yingzhuo 2 October 16 overseas subsidiaries and Qian 2025 list them on the Hong - No No

Xueqiao Kong Stock Exchange

VII. Work of the Audit Committee

Whether the audit committee found out whether the company was at risk during its oversight

activities during the reporting period

□Yes □No

The Audit Committee has no objection to the supervision matters during the reporting period.VIII. Company employees

1. Number of employees professional composition and education level

Number of employees of the parent company at the end of the

reporting period (persons) 2818

Number of employees in major subsidiaries at the end of the

reporting period (persons) 41358

Total number of employees at the end of the reporting period

(person) 44176

The total number of salaried employees in the current period

(person) 44176

Number of retired employees (persons) to be borne by the

parent company and its main subsidiaries 0

Professional composition

Professional composition category Professional composition (person)

71Production staff 21008

Salesperson 12151

Technician 4208

Financial officer 1959

Administrative staff 3799

Purchasing staff 1051

Total 44176

Education level

Education category Quantity (persons)

PhD 152

Master 2423

Undergraduate 10458

College 9314

High school technical secondary school and below 21829

Total 44176

2. Salary policy

On the basis of strictly abiding by the "Labor Law of the People's Republic of China" "Labor

Contract Law of the People's Republic of China" and other relevant national and local laws and

regulations departmental rules and normative documents combined with the characteristics of the

industry and the company's operation and taking the overall development strategy and human

resource management planning goals as the starting point the company has formulated the "Salary

Management System" "Performance Management System" and other systems forming a scientific

and reasonable salary incentive and performance appraisal management system Ensure that

employees receive proper labor compensation fully mobilize their enthusiasm initiative and

creativity and encourage employees to make positive contributions to the development of the

company.The general principles of the company's compensation policy are: based on job value and

employee contribution emphasizing efficiency first and taking into account fairness; the

compensation system implements dynamic balance and employee compensation is adjusted with

changes in position rank and job performance reflecting employee's job contribution and

performance; at the same time the compensation level comprehensively considers regional and

industry conditions maintains moderate competitiveness and relies on a scientific job system to

72objectively evaluate the relative value of each position to maintain internal fairness; In addition the

increase in total compensation is reasonably matched with the company's economic benefits

comprehensively considering the gradual increase in per capita efficiency and adhering to the

principle of economy so as to achieve the common sustainable development of the company and its

employees.At the same time in order to link work performance with salary and personal interests with team

interests improve employees' sense of team and responsibility and make employees' efforts

consistent with the company's goals the company continuously reforms and improves the salary

benefits and insurance systems to create better social and economic benefits.

3. Training plan

The company's talent training has always been centered on improving the capabilities of the

organization and employees to ensure the effective realization of strategic goals. The company has

always placed talent training in an important position and knows that the growth and development

of employees is the key driving force and core resource to promote the company's sustainable

prosperity. Haida College as the company's talent training functional department always follows the

group's strategic orientation closely meets business needs upholds the core value of "all efforts are

only for you to grow" and is committed to solving the core problems in the development of the

organization with the principle of combining elite training and inclusive education. Through the

online and offline teaching mode the talent training project is deeply integrated with the corporate

strategy and business and the path of "training is work continuous learning at work" is realized.During the reporting period Haida College continued to build a learning organization centered

on creating value for customers and promoted key projects such as the training of IDP core cadres

the training of regional reserve financial leaders and MDP outstanding managers and cultivated a

group of management cadres with cultural strategic vision business operation ability and leadership.At the same time the cultural education of new employees in campus recruitment and social

recruitment continued to be strengthened and standardized; The training of lecturers and mentors goes

hand in hand and has cultivated a group of lecturers and mentors with strong professional ability and

rich experience for the group. In terms of overseas talent training through carefully crafted talent

73training programs it has successfully cultivated a group of localized professional backbones and

cadre teams which effectively promoted cross-cultural communication and integration. The

resources of the group's online learning platform "Haiwei" continue to iterate and become more

abundant which provides strong support for accelerating the formation of the group's learning

ecology. A strong talent training atmosphere has been formed within the group the talent training

resource system has been improved day by day the learning path map of each professional center has

been continuously optimized and upgraded and the training system of each business line has

gradually matured and it has become the work highlight of HR and business managers It has laid a

solid foundation for the continuous enrichment of the learning resource library and the in-depth

construction of the learning ecology of Haida University.

4. Labor outsourcing

□ Applicable □Not Applicable

IX. Profit distribution of the company and capitalization of capital reserve into share capital

During the reporting period the profit distribution policy especially the formulation

implementation or adjustment of the cash dividend policy

□Applicable □ Not applicable

The 2024 Annual General Meeting of Shareholders held on May 13 2025 reviewed and

approved the "Proposal on the 2024 Profit Distribution Plan". The distribution plan is based on the

"total share capital of the repurchased shares deducted from the share registration date when the

distribution plan is implemented in the future (that is the number of shares that can participate in the

distribution on the share registration date when the distribution plan is implemented in the future)"

The cash dividend is 11.00 yuan (including tax) for every 10 shares and the total proposed cash

dividend shall not exceed the profit available for distribution to shareholders of the parent company

on December 31 2024. On June 27 2025 the implementation of the equity distribution was

completed.

74The 2025 Third Extraordinary Shareholders' Meeting held on August 14 2025 reviewed and

approved the "Proposal on the 2025 Interim Profit Distribution Plan". The distribution plan is: "The

total share capital of the repurchased shares will be deducted from the share registration date when

the distribution plan is implemented in the future (that is the number of shares that can participate in

the distribution on the share registration date when the distribution plan is implemented in the future)"

as the base and a cash dividend of RMB 2.00 (including tax) will be distributed for every 10 shares

The total amount of cash to be distributed shall not exceed the profit available for distribution to

shareholders of the parent company as of June 30 2025. On September 25 2025 the implementation

of this equity distribution was completed.During the reporting period the company strictly implemented the profit distribution policies

such as the Articles of Association the Dividend Return Plan for the Next Three Years (2022-2024)

and the Dividend Return Plan for the Next Three Years (2025-2027).Special description of cash dividend policy

Whether it complies with the provisions of the company's

articles of association or the requirements of the resolutions of Yes

the shareholders meeting:

Whether the dividend standard and ratio are clear and clear: Yes

Whether the relevant decision-making procedures and

mechanisms are complete: Yes

Whether independent directors perform their duties and play

their due role: Yes

If the company does not distribute cash dividends it shall

disclose the specific reasons and the measures it plans to take in Not applicable

the next step to enhance the level of investor returns:

Whether small and medium shareholders have the opportunity

to fully express their opinions and demands and whether their Yes

legitimate rights and interests are fully protected:

If the cash dividend policy is adjusted or changed whether the

conditions and procedures are compliant and transparent: Yes

The company made a profit during the reporting period and the parent company's profit available

for distribution to shareholders was positive but no cash dividend distribution plan was proposed

□ Applicable □Not Applicable

Profit distribution and capitalization of capital reserve during the reporting period

□Applicable □ Not applicable

Bonus shares for every 10 shares (shares) 0

Dividend per 10 shares (yuan) (including tax) 11

75The total share capital on the record date of the future

The share capital base of the distribution plan (shares) implementation of the distribution plan minus the repurchased

shares

Cash dividend amount (yuan) (tax included) 2142574278.70

Amount of cash dividends in other ways (such as repurchasing

shares) (yuan) 718617412.25

Total cash dividends (including other methods) (yuan) 2861191690.95

Distributable profit (yuan) 3963841466.35

The proportion of total cash dividends (including other

methods) to total profit distribution 100%

The cash dividend distribution

If the company's development stage is in the growth period and has major capital expenditure arrangements when the profit

distribution is carried out the proportion of cash dividends in this profit distribution should be at least 20%

Detailed description of the profit distribution or capital reserve transfer plan

According to the audit report issued by Grant Thornton Zhitong Certified Public Accountants LLP the net profit attributable to

shareholders of the listed company in the company's 2025 consolidated statement was RMB 4280330734.08 and the net profit of

the parent company was RMB 781782694.93.According to the relevant provisions of the Company Law and the Articles of Association the accumulated amount of the company's

statutory surplus reserve has reached more than 50% of the company's registered capital. The company will no longer withdraw the

statutory surplus reserve or withdraw the discretionary reserve in 2025. As of December 31 2025 The profit available for

distribution to shareholders in the consolidated statement is RMB 18316085114.07 and the profit available for distribution to

shareholders of the parent company is RMB 3963841466.35.According to the "Stock Listing Rules of the Shenzhen Stock Exchange" (hereinafter referred to as the "Stock Listing Rules ") the

profit distribution of a listed company shall be based on the profit available for distribution in the statement of the parent company.At the same time in order to avoid over-distribution the company should determine the specific profit distribution ratio based on

the principle of the lower of the profit available for distribution in the consolidated statement and the parent company's statement.Therefore the company's 2025 profit distribution plan is based on the parent company's profit available for distribution to

shareholders on December 31 2025.Based on the company's operations in 2025 combined with the company's business scale and future development needs as well as

the reasonable demands of investors and continuous return to shareholders the company has formulated a profit distribution plan

for 2025 (hereinafter referred to as the "distribution plan "): the company plans to deduct the total share capital of the repurchased

shares from the equity registration date when the distribution plan is implemented in the future (that is the number of shares that

can participate in the distribution on the equity registration date when the distribution plan is implemented in the future) as the base

The cash dividend of RMB 11.00 (including tax) will be distributed for every 10 shares. The total cash dividend to be distributed

shall not exceed the profit available for distribution to shareholders of the parent company on December 31 2025 and the remaining

undistributed profit will be carried forward to subsequent years. Based on the calculation of the total share capital of the company

deducting the repurchased shares as of the disclosure date of this distribution plan it is estimated that a total of 1809837124.70

yuan (tax included) will be distributed in cash dividends.The company's mid-term equity distribution for 2025 was completed on September 25 2025 with a cash dividend of RMB

332737154.00. Combined with the above-mentioned 2025 profit distribution plan it is estimated that cash dividends will be

distributed and the company's accumulated cash dividends in 2025 will total 2142574278.70 yuan. As of December 31 2025 the

company will use cash as the consideration to repurchase shares in the amount of 718617412.25 yuan by means of centralized

bidding. The shares corresponding to the repurchase amount have been cancelled on April 22 2026. In 2025 the company expects

to accumulate cash dividends and repurchase shares totaling 2861191690.95 yuan.X .Implementation of the company's equity incentive plan employee stock ownership plan or

other employee incentive measures

□Applicable □ Not applicable

761. Equity incentives

(1) 2021 Stock Option Incentive Plan

On April 18 2025 the company held the twenty-fourth meeting of the sixth board of directors

and the nineteenth meeting of the sixth board of supervisors. Deliberated and approved the "Proposal

on the Company's 2021 Stock Option Incentive Plan for the first grant of the fourth exercise period

and the reserved grant of the third exercise period that does not meet the exercise conditions and

cancels the corresponding stock options" and "The Proposal on the Cancellation of the Company's

2021 Stock Option Incentive Plan and Part of the 2024 Stock Option Incentive Plan". It was

determined that the first grant of the fourth exercise period and the reserved grant of the third exercise

period of the company's 2021 stock option incentive plan did not meet the exercise conditions and

9719550 corresponding stock options were agreed to be cancelled; 467490 stock options

corresponding to 241 incentive objects who resigned or terminated their labor relations in the 2021

stock option incentive plan were agreed to be cancelled. The proposal has been reviewed and

approved by the first meeting of the Remuneration and Appraisal Committee of the company's sixth

board of directors in 2025 and the company's board of supervisors issued a verification opinion. After

review and confirmation by China Securities Depository and Clearing Co. Ltd. Shenzhen Branch on

May 21 2025 the company completed the cancellation of 9719550 stock options granted for the

first time in the fourth exercise period of the 2021 stock option incentive plan and reserved for the

third exercise period as well as 467490 stock options granted by some incentive objects that have

been granted but have not met the exercise conditions.

(2) 2024 Stock Option Incentive Plan

On April 18 2025 the company held the twenty-fourth meeting of the sixth board of directors

and the nineteenth meeting of the sixth board of supervisors and reviewed and approved the

"Proposal on the first exercise period of the company's 2024 stock option incentive plan that does not

meet the exercise conditions and cancels the corresponding stock options" "The Proposal on

Canceling the Company's 2021 stock option incentive plan and some stock options in the 2024 stock

option incentive plan" It was determined that the first exercise period of the company's 2024 stock

option incentive plan did not meet the exercise conditions and 16191090 corresponding stock

options were agreed to be cancelled; 771205 stock options corresponding to 198 incentive objects of

77the 2024 stock option incentive plan who resigned or terminated their labor relations were agreed to

be cancelled. The proposal has been reviewed and approved by the first meeting of the Remuneration

and Appraisal Committee of the sixth board of directors of the company in 2025 and the board of

supervisors of the company issued a verification opinion. After review and confirmation by China

Securities Depository and Clearing Co. Ltd. Shenzhen Branch the company completed the

cancellation of 16191090 stock options in the first exercise period of the 2024 stock option incentive

plan and 771205 stock options that have been granted by some incentive objects and have not met

the exercise conditions on May 21 2025.

(3) Accounting treatment of equity incentives and its impact on company performance

According to the relevant provisions of "Accounting Standards for Business Enterprises No. 11

— Share Payment" the company will revise the number of stock options expected to be exercised on

each balance sheet date of the waiting period based on the latest obtained follow-up information such

as the change in the number of exercisers and the completion of performance indicators and the

services obtained in the current period will be included in the relevant costs or expenses and capital

reserve according to the fair value of the stock option grant date.The implementation of the above-mentioned equity incentive plan will not have a significant

impact on the company's financial position and operating results during the reporting period and in

the future.Equity incentives received by directors and senior managers of the company

□Applicable □ Not applicable

Unit: share

Num The Num

ber Num number

Num ber

of of ber Num The of

Num

Num ber of num newl ber

ber of newl Numby er of of

shares

exercis stoc Market

ber of ber y of

stock grant exerci share ed k price at

restri

cted of grant Grant

restri

optio s opti the end unloc ed price of cted

ns ed sable during share share

Name Position held stock shares

exerc the ons of the s held ked restri restrict s

at the optio during

ised

durin reporti

held reporti

at ng at the

share cted ed

ns the s in share stock

held

begin g the ng the period begin the s (yuan/s at the

ning durin reportig the ng repor

period

and the end (yuan/s

ning end

of the of the

curre durin hare) of

year repor period

ting exercis of hare) perio nt g the the

ting period e price

the d perio reporperi d ting perioperio (yuan/s

d hare) od perio

d

d

Qian Employe 5800 0 0 0 0 290 55.38 0 0 0 0 0

78Num The Num

ber Num ber

of Num

number

of ber Num The of

Num

Num newl Numb ber shares of ber of num newl

ber

ber of of of

stock y er of share exercis

stoc Market restri ber y restri

optio grant exerci ed

k price at cted of grant Grant cted

ns ed sable

s during opti the end share unloc ed price of

stock shares exerc the ons of the ked restri restrict

share

Name Position held optio during ised reporti held reporti

s held

at the share cted ed

s

at the held

begin ns the

durin

g the ng

at ng s in share stock

durin reporti period the period

begin

ning the s (yuan/s

at the

ning g the ng repor and the end (yuan/s

end

of the ting of hare) of the

curre durin hare)

repor period exercis perio nt g the

of

year ting perio

the

d e price

the d perio repor perio

perio (yuan/s peri d ting

d hare) od perio

d

d

Xueqi e 0 00

ao Represe

ntative

Director

Vice

Presiden

t Chief

Engineer

Chen Vice-

g Qi Presiden

6200

00000

310

00 55.38 0 0 0 0 0 t

Liu Vice-

Guoxi Presiden 54000 0 0 0 0

270

00 55.38 0 0 0 0 0 ang t

Vice

Yang Presiden

Shaol t Chief 5800 0 0 0 0 2900 00 55.38 0 0 0 0 0 in Financia

l Officer

Jiang Vice-

Xiew Presiden 5400 270

u t 0

00000055.3800000

Mi Vice-

Guoc Presiden 5400 2700 0 0 0 0 00 55.38 0 0 0 0 0 heng t

Chen Vice-

Zhon Presiden 62000 0 0 0 0

310

gzhu t 00

55.3800000

Huo Vice-

Quan Presiden 4600 0 0 0 0 230 55.38 0 0 0 0 0

wen t 0 00

Lu Vice-

Xuez Presiden 50000 0 0 0 0

250

00 55.38 0 0 0 0 0 hi t

Hou Vice-

Huapi Presiden 4800 0 0 0 0 2400 00 55.38 0 0 0 0 0 ng t

Wang Vice-Presiden 5000 0 0 0 0 250Jing 0 00 55.38 0 0 0 0 0 t

Vice

Huan Presiden

g t 5800 290

Zhijia Secretar 0 0 0 0 0 00 55.38 0 0 0 0 0

n y of the

Board

Total -- 6540 32700 0 0 0 -- 000 -- 0 0 0 -- 0

Remarks (if any) 1. During the reporting period the Company held the twenty-fourth meeting of the sixth board of directors

79Num The Num

ber number Num ber

of Num of ber The of

Num

Num ber of Num num newl ber

ber of newl Numb of shares y er of exercis stoc Market

ber of of

stock share k price at restri

ber y restri

optio grant exerci

of grant Grant

ed sable s

ed opti the end cted cted

ns exerc during ons of the share

unloc ed price of

stock shares the s held ked restri restrict

share

Name Position held ised s

at the optio during durin reporti

held reporti

at ng at the

share cted ed

ns the ng s in share stock

held

begin durin reporti g the period the period

begin

ning the s (yuan/s

at the

ning g the ng repor and the end (yuan/s of the curre durin hare)

end

of the repor period ting exercis of hare) nt g the

of

year ting perio e price the

perio

d perio repor

the

perio d (yuan/s peri d ting

perio

d

d hare) od period

and the nineteenth meeting of the sixth board of supervisors and reviewed and approved the "Proposal on

the Company's 2021 Stock Option Incentive Plan for the First Grant of the Fourth Exercise Period and the

Reserved Grant of the Third Exercise Period Does Not Meet the Exercise Conditions and Cancellation of the

Corresponding Stock Options" and agreed that the Company will cancel the first grant of stock options and

the reserved grant of stock options that the incentive objects have been granted but did not meet the exercise

conditions Among them the cancellation of a total of 363000 stock options for directors and senior

executives will be completed on May 21 2025.

2. Mr. Hou Huaping was appointed by the board of directors as the vice president of the company on June

16 2025. The number of stock options he held before taking office has been included in the report at the

beginning of the reporting period.

3. Mr. Zhang Guijun and Mr. Yang Jiantao have resigned from their positions as vice presidents of the

company on November 26 2025. The table does not include the number of stock options held by the two of

them.Evaluation mechanism and incentives for senior managers

The company has established a mechanism for the selection evaluation incentive and restraint

of senior management personnel. All senior management personnel of the company are appointed by

the board of directors. They are responsible to the board of directors and undertake the business

indicators issued by the board of directors. The board of directors has a special meeting of

independent directors to formulate and supervise the executive compensation and assessment system

to ensure its rationality and fairness. In order to ensure that the behavior of executives is consistent

with the company's long-term interests and improve the company's performance. The following

evaluation mechanism has been established: According to the company's strategic goals key

performance indicators such as financial (such as sales volume profit ROA) and non-financial

indicators (such as market share customer satisfaction and employee growth) are set and the

performance of executives is comprehensively evaluated from the four dimensions of finance

customers internal processes learning and growth. And through the group talent management

committee to collectively evaluate the performance of executives to ensure the combination of long-

term and short-term goals not only focusing on short-term performance but also evaluating the

80realization of long-term strategic goals. The design of executive incentive mechanism is diversified.

The compensation structure includes fixed compensation annual performance bonus growth sharing

long-term incentives etc. The compensation incentives are closely linked with performance appraisal

and the annual bonus growth sharing and long-term incentives are all linked to performance goals

and achievement. The company also pays attention to non-cash incentives such as honors and career

development opportunities to enhance the sense of belonging and achievement of executives. In

summary during the reporting period senior management's assessment and incentives took into

account the company's short-term performance and long-term development and through a reasonable

and diversified salary structure and equity incentives it ensured that the interests of senior

management were consistent with those of the company and shareholders.

2. Implementation of the Employee Stock Ownership Plan

□Applicable □ Not applicable

All effective employee stock ownership plans during the reporting period

As a percentage

Number of Total number of of the total Sources of funds for the Scope of employees employees shares held Changes share capital of implementation of the (shares) listed plan

companies

Participants of the 2024

Employee Stock Ownership Plan Employees' legitimate

are directors supervisors senior No more than 750 3357761 No 0.20%

income self-financing or

management and other core other means permitted by

personnel applicable law

Shareholding of directors and senior executives in the employee stock ownership plan during the

reporting period

Number of shares held Number of shares held

Name Position at the beginning of the at the end of the

As a percentage of the

reporting period reporting period total share capital of

(shares) (shares) listed companies

Employee

Representative

Qian Xueqiao Director Vice

President Chief

Engineer

Shen Dong Director

8640004320000.03%

Cheng Qi Vice-President

Liu Guoxiang Vice-President

Yang Shaolin Vice President Chief Financial Officer

Jiang Xiewu Vice-President

81Mi Guocheng Vice-President

Chen Zhongzhu Vice-President

Huo Quanwen Vice-President

Lu Xuezhi Vice-President

Hou Huaping Vice-President

Wang Jing Vice-President

Huang Zhijian Vice President Secretary of the Board

Changes in asset management institutions during the reporting period

□ Applicable □Not Applicable

Changes in equity during the reporting period due to the disposal of shares by holders etc

□Applicable □ Not applicable

As of the end of the reporting period some of the company's shares held by the ESOP in 2024

have been sold through centralized bidding. The number of shares traded was 3357700 shares and

the remaining number of shares held was 3357761 shares accounting for 0.20% of the company's

total share capital at the end of the reporting period.Exercise of shareholder rights during the reporting period

During the reporting period the company's 2024 employee stock ownership plan attended the

company's fourth extraordinary shareholders meeting in 2025 through online voting and exercised

shareholder rights and voted in favor of the proposals considered by the shareholders meeting.Other relevant circumstances and explanations of the employee stock ownership plan during the

reporting period

□ Applicable □Not Applicable

Changes in the membership of the Employee Stock Ownership Plan Management Committee

□Applicable □ Not applicable

On November 25 2025 the 2024 Employee Stock Ownership Plan held the first holders'

meeting in 2025 and the Proposal on Changing the Members of the 2024 Employee Stock Ownership

Plan Management Committee was reviewed and approved. Mr. Hou Huaping and Mr. Ye Moutian

resigned from the 2024 Employee Stock Ownership Plan Management Committee due to personal

reasons and Mr. Liu Changcheng and Mr. Wang Hua were elected as members of the 2024 Employee

82Stock Ownership Plan Management Committee. Together with the original member Ms. Yang

Huafang the management committee was formed and the term of office was the same as the duration

of this shareholding plan.The financial impact of the employee stock ownership plan on listed companies during the

reporting period and related accounting treatments

□Applicable □ Not applicable

The accounting treatment of the company's employee stock ownership plan is in accordance with

the "Accounting Standards for Business Enterprises No. 11 — Share-based Payment": For equity-

settled share-based payment in exchange for employee services after completing the service within

the waiting period or meeting the specified performance conditions the fair value of the equity

instrument on the grant date shall be based on the best estimate of the number of exercisable equity

instruments on each balance sheet date during the waiting period The services obtained in the current

period are included in the relevant costs or expenses and capital reserves.The implementation of the aforementioned employee stock ownership plan will not have a

significant impact on the company's financial position and operating results during the reporting

period and in the future.Termination of employee stock ownership plans during the reporting period

□ Applicable □Not Applicable

Other instructions:

No

3. Other employee incentives

□ Applicable □Not Applicable

83XI. Construction and implementation of the internal control system during the reporting

period

1. Construction and implementation of internal control

In accordance with the "Company Law" "Securities Law" "Basic Norms of Enterprise Internal

Control" "Shenzhen Stock Exchange Stock Listing Rules" and other laws and regulations the

company has established improved and effectively implemented internal control reasonably ensured

the legal compliance of operation and management asset safety authenticity and integrity of financial

reports and related information and improved operating efficiency and effectiveness. The company

revised supplemented and improved the daily operation and management regulations in a timely

manner and the internal control operation mechanism was effective which achieved the expected

goals of internal control protected the interests of the company and all shareholders and laid a good

institutional foundation for the healthy and rapid development of the company. The Company's

Internal Control Self-evaluation Report 2025 comprehensively truthfully and accurately reflected the

actual situation of the Company's internal control. During the reporting period the Company had no

major deficiencies and major deficiencies in internal control.

2. Details of major deficiencies in internal control discovered during the reporting period

□Yes □No

XII. The management and control of the company's subsidiaries during the reporting period

Problems Follow-

Company Integration plan Integration encountered Solutions Resolution up name progress in taken progress resolution

integration plan

In accordance with the relevant regulations

of the China Securities Regulatory

Commission the Shenzhen Stock

Zhuhai Dehai Exchange and the company's articles of

Biotechnology association of the listed company guide and Not Not Not Not

Co. Ltd. and standardize the target company's Integrated applicable applicable applicable applicable

its subsidiaries institutional setup personnel adjustment

internal control system financial system

etc. and incorporate it into the listed

company system for unified management

Zhejiang In accordance with the relevant regulations

Lanke Seed of the China Securities Regulatory Integrated Not Not Not Not

Technology Commission the Shenzhen Stock applicable applicable applicable applicable

84Problems Follow-

Company Integration plan Integration encountered Solutions Resolution up name progress in taken progress resolution

integration plan

Co. Ltd Exchange and the company's articles of

association of the listed company guide and

standardize the target company's

institutional setup personnel adjustment

internal control system financial system

etc. and incorporate it into the listed

company system for unified management

In accordance with the relevant regulations

of the China Securities Regulatory

PT BIBIT Commission the Shenzhen Stock

UNGGUL Exchange and Indonesia and the articles of

(Indonesia association of the listed company guide and

Quality Seed standardize the institutional setting Integrated

Not Not Not Not

personnel adjustment internal control applicable applicable applicable applicable Industry Co.Ltd.) system financial system and other aspects of the target company and incorporate it

into the listed company system for unified

management

There is an abnormality in the management and control of the subsidiary

□Yes □No

XIII. Internal control evaluation report or internal control audit report

1. Internal control evaluation report

Disclosure date of the full text of the

internal control evaluation report April 28 2026

Internal Control Evaluation Report Full

Text Disclosure Index Juchao Information Network (www.cninfo.com.cn)

The proportion of the total assets of the

units included in the evaluation scope to

the total assets of the company's 100.00%

consolidated financial statements

The proportion of the operating income

of the unit included in the evaluation

scope to the operating income of the 100.00%

company's consolidated financial

statements

Defect identification standard

Category Financial report Non-financial reporting

For details please refer to the "2025 For details please refer to the "2025

Qualitative criteria Internal Control Self-evaluation Report" Internal Control Self-evaluation Report"

disclosed on the same day disclosed on the same day

For details please refer to the "2025 For details please refer to the "2025

Quantitative standard Internal Control Self-evaluation Report" Internal Control Self-evaluation Report"

disclosed on the same day disclosed on the same day

Number of material defects in financial

reporting (a) 0

Number of material deficiencies in non-

financial reporting (pieces) 0

85Number of significant deficiencies in

financial reporting (a) 0

Number of significant deficiencies in

non-financial reporting (a) 0

2. Internal control audit report

□Applicable □ Not applicable

Deliberation opinion paragraph in the internal control audit report

On December 31 2025 the Company maintained effective internal control over financial reporting in all material aspects in

accordance with the Basic Norms for Enterprise Internal Control and relevant regulations.Disclosure of internal control audit reports Disclose

Disclosure date of the full text of the internal control audit

report April 28 2026

Internal Control Audit Report Full Text Disclosure Index Juchao Information Network (www.cninfo.com.cn)

Internal control audit report opinion type Standard unqualified opinion

Whether there are material deficiencies in non-financial

reporting No

Whether the accounting firm has issued a non-standard opinion on the internal control audit report

□Yes □No

Whether the internal control audit report issued by the accounting firm is consistent with the self-

evaluation report of the board of directors

□Yes □ No

Whether a non-standard audit opinion on internal control was issued during the reporting period or

the previous year

□Yes □No

XIV. The rectification of self-examination problems in the special action of listed company

governance

Not applicable.XV. Disclosure of environmental information

Whether listed companies and their main subsidiaries are included in the list of companies that

disclose environmental information according to law

86□Yes □ No

The number of enterprises included in the list of enterprises

that disclose environmental information according to law 17

(units)

Serial Business name Query Index of Environmental Information Legal Disclosure number Report

Notice of Guangzhou Municipal Bureau of Ecology and

1 Guangzhou Dachuan Feed Co. Ltd Environment on Announcement of the List of Enterprises Disclosure of Environmental Information According to Law in

2025

2 Zhanjiang Haida Feed Co. Ltd Zhanjiang City 2025 Environmental Information Disclosure List of Enterprises According to Law

Notice of Changzhou Municipal Bureau of Ecology and

3 Changzhou Haida Biological Feed Co. Ltd Environment on Announcement of the List of Enterprises Disclosure of Environmental Information According to Law in

2025

Announcement of the list of enterprises that disclose

4 Jingzhou Haida Feed Co. Ltd environmental information in accordance with the law in Jingzhou

in 2025

5 Tianmen Haida Feed Co. Ltd List of companies that disclose environmental information in Tianmen City in 2025 according to law (draft for comments)

6 Sichuan Hellinger Biopharmaceutical Co. Ltd Announcement on "Chengdu 2025 Enterprise Environmental Information Disclosure List According to Law"

Notice of Qingyuan Ecological Environment Bureau on Printing

7 Qingyuan Haibei Biotechnology Co. Ltd and Distributing the "List of Enterprises Disclosure of

Environmental Information in Qingyuan City in 2025"

8 Guizhou Aikexin Pig Breeding Co. Ltd Qiannan Prefecture 2025 Environmental Information Disclosure List of Enterprises According to Law

Hengshan County Yitun Ecological Agriculture Announcement of the list of companies that disclose 9 Co. Ltd environmental information in accordance with the law in Hengyang in 2025

Public announcement of the list of companies that disclose

10 Zixing Yitun Ecological Agriculture Co. Ltd environmental information in accordance with the law in

Chenzhou in 2025

Hengyang Jisheng Agriculture and Animal Announcement of the list of companies that disclose 11 Husbandry Development Co. Ltd environmental information in accordance with the law in Hengyang in 2025

Hengnan County Yitun Ecological Agriculture Announcement of the list of companies that disclose 12 Co. Ltd environmental information in accordance with the law in Hengyang in 2025

13 Shaoguan Zhenjiang District Yitun Ecological

Notice on Printing and Distributing the List of Enterprises

Agriculture Co. Ltd Disclosure of Environmental Information According to Law in Shaoguan City in 2025

14 Jiaxiang Haiying Food Co. Ltd Announcement on the list of enterprises that disclose environmental information according to law in Jining City in 2025

15 Linxi County Haiying Food Co. Ltd Announcement on the "List of Enterprises Disclosure of Environmental Information in Xingtai City in 2025"

16 Yiyuan Haiying Food Co. Ltd List of companies that disclose environmental information according to law in Zibo City in 2025

Enterprise Environmental Information Legal Disclosure System

17 Liyang Jiuhe Feed Co. Ltd of Jiangsu Provincial Department of Ecology and Environment

(Jiangsu)

XVI. Social Responsibility

For details please refer to the "2025 Sustainability Report" disclosed by the company in the

designated information disclosure media.

87XVII. Consolidate and expand the achievements of poverty alleviation and rural revitalization

As a responsible private enterprise rooted in agriculture rural areas and farmers and serving

agriculture and animal husbandry the company has always been adhering to the tenet of "promoting

agriculture through science and technology and assisting agriculture through industry" and has

actively participated in the main battlefield of rural revitalization. The company gives full play to the

resource advantages of the whole industry chain aims at the three goals of agricultural modernization

farmer professionalization and popularization of agricultural technology and contributes scientific

and technological strength and leadership to rural revitalization.For more than 20 years Haida people have been running on the road of popularization and

publicity of agricultural technology shuttled by the Tangtou bar in the fields and countryside. With

the advantages of the whole industry chain of seedlings feed biopharmaceuticals and breeding of

Haid Group and its strong R&D and innovation capabilities with advanced breeding concepts

technologies and products Haida people have effectively helped millions of farmers to scientifically

breed increase income and become rich open up the "last mile" of agricultural science and

technology services and promote the industrialization of agriculture the professionalization of

farmers and the popularization of agricultural technology. Contribute great strength to rural

revitalization.For details please refer to the "2025 Sustainability Report" disclosed by the company in the

designated information disclosure media.

88Section 5 Important Matters

I. Fulfillment of commitments

1. The company's actual controllers shareholders related parties acquirers and the

company and other related parties have fulfilled their commitments during the reporting

period and have not fulfilled their commitments as of the end of the reporting period

□Applicable □ Not applicable

Promise Promise Commitment party type Commitment content

Promise Commitment

time period Performance

1. Mr. Xue Hua promises not

to use the position of the actual

controller to damage the

interests of Haid Group and

other shareholders of Haid

Group. 2. During the period as

the actual controller of Haid

Group Mr. Xue Hua

guarantees that he and his

wholly-owned subsidiaries

Commitments holding subsidiaries and

Commitments on horizontal companies actually controlled

made in an competition (except Haid Group) will not

initial public Xue Hua related party directly or indirectly engage in November Long Strictly

offering or transactions any form of business activities 27 2009 performing

refinancing and capital within or outside China that

occupation compete with the main

business or main products of

Haid Group or pose a threat of

competition Including

companies enterprises or

other economic organizations

that do not invest acquire or

merge with the same or similar

main business or main

products of Haid Group within

or outside China.

1. Guarantee not to use the

position of the controlling

shareholder to damage the

interests of Haid Group and

other shareholders of Haid

Commitments Group. 2. During the period

Commitments on horizontal when Guangzhou Haihao is

made in an Guangzhou competition the controlling shareholder of

initial public Haihao Haid Group Guangzhou November Strictly

offering or Investment

related party Long

Co. Ltd transactions

Haihao guarantees that 27 2009 performing

refinancing and capital Guangzhou Haihao and its

occupation wholly-owned subsidiaries holding subsidiaries (except

Haid Group) and companies

actually controlled will not

directly or indirectly engage in

business activities that

compete with or threaten

89Promise Promise Commitment party type Commitment content

Promise Commitment

time period Performance

competition with the main

business or main products of

Haid Group in any form within

or outside China Including

companies enterprises or

other economic organizations

that do not invest acquire or

merge within or outside China

with the same or similar main

business or main products of

Haid Group.The Company promises not to

provide loans loan guarantees

Equity Guangdong

or any other forms of financial

Haid Other assistance for incentive objects May 20 May 20 2021 Incentive Strictly

Commitment Group Co. commitments

to obtain relevant rights and to June 27

Ltd. interests in accordance with

2021 2027 performing

the 2021 Stock Option

Incentive Plan of Guangdong

Haid Group Co. Ltd.The Company undertakes not

to provide loans loan

guarantees or any other forms

Equity Guangdong of financial assistance to the March 20

Incentive Haid Other incentive objects for the March 20 Group Co. commitments exercise of the stock options 2024 2024 to May

Strictly

Commitment performing Ltd. granted in the 2024 Stock 8 2028

Option Incentive Plan of

Guangdong Haid Group Co.Ltd.When the company

implements cash dividends

the following conditions must

be met at the same time:

(1) The company has made

profits in the year or half of the

year and the accumulated

distributable profits (that is

the remaining after-tax profits

after the company makes up

for losses and withdraws the

provident fund) are positive

and the cash flow is sufficient.The implementation of cash

Other dividends will not affect the

commitments Guangdong company's subsequent

made to the Haid Dividend continuous operations; May 09 May 9 2022

company's Group Co. Commitment (2) The audit institution shall 2022 to June 27 Fulfilled

minority Ltd. issue a standard unqualified 2025

shareholders audit report on the company's

annual financial report (if the

company implements interim

dividends the audit institution

shall have issued a standard

unqualified audit report on the

company's previous annual

financial report);

(3) The company has no major

foreign investment plans or

major cash expenditures in the

next twelve months (except for

fund-raising projects). A major

investment plan or major cash

expenditure means that the

90Promise Promise Commitment party type Commitment content

Promise Commitment

time period Performance

company's planned external

investment asset acquisition

or equipment purchase in the

next twelve months has

reached or exceeded 30% of

the company's most recent

audited net assets.

(4) There are no other

circumstances that the board of

directors considers

inappropriate for cash

dividend distribution.When the company

implements cash dividends

the following conditions must

be met at the same time:

(1) The company has achieved

profit in the year or half of the

year the accumulated

distributable profit is positive

and the cash flow is sufficient

the implementation of cash

dividends will not affect the

company's subsequent

continuous operation;

(2) The audit institution shall

Other issue a standard unqualified

commitments Guangdong audit report on the company's

made to the Haid Dividend annual financial report; June 16 2025

company's Group Co. Commitment (3) The company has no major

June 16 to June 15 Strictly

minority Ltd. foreign investment plans or

2025 2028 performing

shareholders major cash expenditures in the next twelve months. A major

investment plan or major cash

expenditure means that the

company's planned external

investment asset acquisition

or equipment purchase in the

next twelve months has

reached or exceeded 30% of

the company's most recent

audited net assets.

(4) There are no other

circumstances that the board of

directors considers

inappropriate for cash

dividend distribution.Whether the promise is fulfilled on time Yes

If the commitment is overdue and not

fulfilled the specific reasons for the non-

fulfillment and the next work plan shall be Not applicable.explained in detail

2. If there is a profit forecast for the company's assets or projects and the reporting period is

still in the profit forecast period the company will explain that the assets or projects have

reached the original profit forecast and the reasons for it

□ Applicable □Not Applicable

913. The company involves performance commitments

□ Applicable □Not Applicable

II. Non-operating capital occupation of listed companies by controlling shareholders and

other related parties

□ Applicable □Not Applicable

During the reporting period there was no non-operating capital occupation of the listed company by

the controlling shareholder and other related parties.III. Violation of external guarantees

□ Applicable □Not Applicable

During the reporting period the company had no illegal external guarantees.IV. Explanation of the Board of Directors on the latest "non-standard audit report"

□□ Applicable Not Applicable

V. Explanations of the board of directors and independent directors (if any) on the "non-

standard audit report" of the accounting firm during the reporting period

□ Applicable □Not Applicable

VI. Explanation of changes in accounting policies accounting estimates or corrections of

material accounting errors compared with the financial report of the previous year

□ Applicable □Not Applicable

During the reporting period the company had no accounting policies changes in accounting

estimates or corrections of major accounting errors.

92VII. Explanation of the changes in the scope of the consolidated statement compared with the

financial report of the previous year

□Applicable □ Not applicable

The company included 611 subsidiaries in the consolidated financial statements this year an

increase of 64 and a decrease of 27 over the previous year. For details please refer to Note VII in

Section VIII "Financial Reports". Interests in other entities.VIII. Appointment and Dismissal of Accounting Firms

Current accounting firm

Name of domestic accounting firm Grant Thornton Zhitong Certified Public Accountants LLP

Remuneration of domestic accounting firms (ten thousand

yuan) 480

Consecutive years of audit services of domestic accounting

firms 7 years

The name of the certified public accountant of the domestic

accounting firm Li Xujia Qiu Shuntong

The continuous number of years of CPA audit services of

domestic accounting firms Li Xujia 2 years Qiu Shuntong 3 years

Name of overseas accounting firm (if any) Not applicable

Remuneration of overseas accounting firm (ten thousand yuan)

(if any) 0

Continuous years of audit services of overseas accounting firms

(if any) Not applicable

The name of the certified public accountant of the overseas

accounting firm (if any) Not applicable

Continuous years of CPA audit services of overseas accounting

firms (if any) Not applicable

Whether to reappoint an accounting firm in the current period

□Yes □No

Engaging internal control audit accounting firm financial consultant or sponsor

□Applicable □ Not applicable

During the reporting period the company hired Grant Thornton Zhitong Certified Public

Accountants LLP as the internal control auditing accounting firm and paid a total of 1.2 million yuan

in internal control audit fees.

93IX. Delisting after the disclosure of the annual report

□ Applicable □Not Applicable

X .matters related to bankruptcy and reorganization

□ Applicable □Not Applicable

During the reporting period the company did not have any bankruptcy and reorganization related

matters.XI. Major litigation and arbitration matters

□ Applicable □Not Applicable

During the reporting period the company had no major lawsuits or arbitrations.XII. Punishment and rectification

□ Applicable □Not Applicable

During the reporting period there were no penalties and rectifications.XIII. The integrity of the company and its controlling shareholders and actual controllers

□ Applicable □Not Applicable

94XIV. Significant related party transactions

1. Related party transactions related to daily operations

□Applicable □ Not applicable

Pricing Amount ApprovePercenta d Whethe Related Available

Related Related Principles Related of related ge of transactio r it party market Related Relationsh transaction transaction for Related transactio transactio similar n amount exceeds transactio price of Disclosur Disclosure party ip type content Party n price ns (ten transactio (ten the n similar e date Index Transactio thousand approve settlement transactio

ns yuan) n amount thousand yuan) d quota method ns

"Announceme

nt on the

Based on Estimated

Foshan the On Daily Related

HNA market normal Party

Xingfa price the commerci Transactions

Agriculture Sales of Sales of two al terms in 2025"

and Animal Joint goods to feed and Market parties or in Not April 22 (Announceme

Husbandry venture related other pricing negotiate 9926.68 0.08% 9150 Yes accordanc applicable 2025 nt No. 2025-

Developme parties products to e with 012) disclosed

nt Co. Ltd. determin relevant in the

and its e the agreement company's

subsidiaries transactio s designated

n price information

disclosure

media

Based on "Announceme

the On nt on the

market normal Estimated

Procureme price the commerci Daily Related Wujiaqu

Taikun nt of raw two al terms

Party

Plant Joint materials

Procureme Transactions

venture from nt of raw

Market parties 10133.81 0.09% 9000 Yes or in Not April 22

Protein Co. materials pricing negotiate accordanc applicable 2025

in 2025"

(Announceme

Ltd related to e with parties determin relevant nt No. 2025-

e the agreement 012) disclosed

transactio s in the

n price company's designated

95information

disclosure

media

"Announceme

nt on the

Based on Estimated

the On Daily Related

market normal Party

Hutubi Procureme price the commerci Transactions

Tiankang nt of raw two al terms in 2025"

Plant Joint materials

Procureme

nt of raw Market parties 22356.32 0.19% 20000 Yes or in Not April 22 (Announceme

Protein Co. venture from materials pricing negotiate accordanc applicable 2025 nt No. 2025-

Ltd related to e with 012) disclosed parties determin relevant in the

e the agreement company's

transactio s designated

n price information

disclosure

media

"Announceme

nt on the

Based on Estimated

the On Daily Related

market normal Party

Alar Procureme price the commerci Transactions

Ruiliheng nt of raw Procureme two al terms in 2025"

Biological Joint materials nt of raw Market parties or in Not April 22 (Announceme

Protein Co. venture from materials pricing negotiate

10863.63 0.09% 8000 Yes accordanc applicable 2025 nt No. 2025-

Ltd related to e with 012) disclosed parties determin relevant in the

e the agreement company's

transactio s designated

n price information

disclosure

media

Total -- -- 53280.44 -- 46150 -- -- -- -- --

Details of large-value sales returns Not applicable.If the total amount of daily connected transactions that will occur in

the current period is estimated by category the actual performance Not applicable.during the reporting period (if any)

Reasons for the large difference between the transaction price and the

market reference price (if applicable) Not applicable.

962. Related-party transactions arising from the acquisition and sale of assets or equity

□ Applicable □Not Applicable

During the reporting period there were no related transactions involving the acquisition or sale of

assets or equity.

3. Related party transactions of joint foreign investment

□ Applicable □Not Applicable

During the reporting period the company did not have any related transactions of joint foreign

investment.

4. Related creditor's rights and debts

□ Applicable □Not Applicable

During the reporting period there was no related creditor's rights and debts.

5. Transactions with financial companies that have an associated relationship

□ Applicable □Not Applicable

There is no deposit loan credit or other financial business between the company and the financial

company that has an associated relationship and the associated party.

6. The transactions between the financial company controlled by the company and related

parties

□ Applicable □Not Applicable

There is no deposit loan credit or other financial business between the financial company

controlled by the company and related parties.

977. Other major related transactions

□ Applicable □Not Applicable

During the reporting period the company had no other major related transactions.XV. Major contracts and their performance

1. Custody contracting and leasing matters

(1) Custody

□ Applicable □Not Applicable

There was no custody of the company during the reporting period.

(2) Contracting situation

□ Applicable □Not Applicable

There was no contract in the company during the reporting period.

(3) Leasing

□ Applicable □Not Applicable

There was no lease in the company during the reporting period.

982. Major guarantee

□Applicable □ Not applicable

Unit: ten thousand yuan

External guarantees of the company and its subsidiaries (excluding guarantees to subsidiaries)

Disclosure Whether

date of the Actual to

Guaranteed object name announcement Guarantee Actual Guarantee Collateral Counter-guarantee (if any) Guarantee Is it

related to the amount date guarantee amount type (if any) period fulfilled

guarantee

guarantee a related

amount party

The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 January several company; the company has the

2024 20000 25 2024 23758.5 liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

Customers such as subsidiary overdue loan of the borrower.farmers or distributors The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 30000 February 37656.56 several company; the company has the 2024 02 2024 liability right to withhold the relevant 2 years No No

guarantee funds of the customer

(including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

99overdue loan of the borrower.

The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 120000 January 274884.83 several

company; the company has the

2024 15 2024 liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 January several company; the company has the

2024 30000 02 2024 23923.09 liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 60000 March 21 2024 2024 109096.98

several company; the company has the liability right to withhold the relevant 3 years No No

guarantee funds of the customer

(including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

100overdue loan of the borrower.

The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 company; the company has the

202430000

October several

24 2024 30193.43 liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 August several company; the company has the

2024 30000 30 2024 32826.25 liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25

202455000

January

152024152124.51

several company; the company has the liability right to withhold the relevant 2 years No No

guarantee funds of the customer

(including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

101overdue loan of the borrower.

The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 company; the company has the

20242000

February several

06 2024 1638.26 liability right to withhold the relevant 1 year No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 June 18 several company; the company has the

2024 1500 2021 542.1 liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 1000 May 06 232 several company; the company has the Within 1 2024 2022 liability right to withhold the relevant year No No

guarantee funds of the customer

(including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

102overdue loan of the borrower.

The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 20000 January 1175.74 several

company; the company has the

2024 01 2024 liability right to withhold the relevant

Within 1 No No

guarantee funds of the customer

year

(including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 January several company; the company has the

2024 500 03 2025 114.03 liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25

20241000

July 07

2023290.7

several company; the company has the liability right to withhold the relevant 5 years No No

guarantee funds of the customer

(including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

103overdue loan of the borrower.

The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 September several company; the company has the

2024 500 05 2024 252.69 liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 January several company; the company has the

2024 1500 04 2025 374.32 liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25

20245000

July 02

2025657.28

several company; the company has the liability right to withhold the relevant 3 years No No

guarantee funds of the customer

(including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

104overdue loan of the borrower.

The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 1500 October 100.01 several

company; the company has the

2024 14 2025 liability right to withhold the relevant 2 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.The spouse of the borrower

one of the adult children of the

borrower and one of the spouse

and a third party provide

Joint and counter-guarantee to the

December 25 January company; the company has the

202460001120246420.07

several

liability right to withhold the relevant 3 years No No

guarantee funds of the customer (including but not limited to the

remaining payment discounts

etc.) for repayment of the

principal and interest of the

overdue loan of the borrower.Unused quota December 25 2024 29500

The total actual amount

The total amount of external guarantees approved of external guarantees

during the reporting period (A1) 445000 during the reporting 696261.35

period (A2)

The total balance of

The total amount of external guarantees approved actual external

at the end of the reporting period (A3) 445000 guarantees at the end of 259936.88 the reporting period

(A4)

105The company's guarantee to its subsidiaries

Disclosure

date of the Whether

announcement Guarantee Actual Actual Guaranteed object name Guarantee Collateral Guarantee Is it

to

related to the amount date guarantee amount type (if any)

Counter-guarantee (if any) period fulfilled guarantee

guarantee a related

amount party

China Joint and

Haida Feed Group (HK) December 25 2024 15463.36

April 15

202531376.69

several

Limited liability

Not applicable 1 year No No

guarantee

Joint and

China Haida Feed Group (HK) December 25

Limited 2024 30000

December

20202413743

several

liability Not applicable 1 year Yes No

guarantee

Joint and

Haid International Group October 31 June 13 several

Limited 2017 35144 2018 35144 liability Not applicable 7 years Yes No

guarantee

PT HAIDA Joint and

BIOTECHNOLOGY December 25 2024 3098.25

November several

INDONESIA 15 2023

3098.25 liability Not applicable 2 years Yes No

guarantee

Joint and Minority shareholders provide

Foshan HNA Feed Co. Ltd December 25 50 November several counter-guarantee to the 2024 13 2024 50 liability company according to their 1 year Yes No

guarantee shareholding ratio

Joint and Minority shareholders provide

Foshan HNA Feed Co. Ltd December 25 2024 67.5

November several counter-guarantee to the

13 2024 67.5 liability company according to their 3 years No No

guarantee shareholding ratio

Guangzhou Nansha Joint and Minority shareholders provide

Haishengyuan Aquaculture December 25 200 April 03 200 several counter-guarantee to the

Technology Co. Ltd 2024 2023 liability

company according to their 2 years Yes No

guarantee shareholding ratio

Joint and

Guangzhou Haida Feed Co. Ltd December 25 March 19 13 2024 29000 2025 29000 several Not applicable No No liability months

106guarantee

Joint and

Guangzhou Yitun Pig Industry December 25 January several 18

Investment Co. Ltd 2024 5000 03 2025 0.02 liability Not applicable months Yes No

guarantee

Joint and

Guangzhou Yitun Pig Industry

Investment Co. Ltd June 29 2019 55700

November

28201952252.75

several

liability Not applicable 12 years Yes No

guarantee

Joint and

Guangzhou Yitun Pig Industry June 29 2019 2750 September Investment Co. Ltd 10 2020 73810.35

several

liability Not applicable 12 years No No

guarantee

Joint and

Guangzhou Yitun Pig Industry July 27 2021 23000 October 13858.9 several Investment Co. Ltd 26 2022 liability Not applicable 13 years No No

guarantee

Joint and

Hainan Haihaida Aquatic Seed December 25 December several

Industry Development Co. Ltd 2024 83.06 12 2025 83.06 liability Not applicable 6 months No No

guarantee

Leizhou Yuexiu Haishengyuan Joint and Minority shareholders provide

Shrimp Breeding Technology December 25 289.58 December 336.63 several counter-guarantee to the

Co. Ltd 2024 02 2024 liability company according to their

3 years No No

guarantee shareholding ratio

Joint and

Qingyuan Haibei Biotechnology December 25 150 February several Co. Ltd 2024 26 2025 150 liability Not applicable 1 year No No

guarantee

Joint and

Qingyuan Haida Biotechnology December 25 December several

Co. Ltd 2024 70 28 2022 70 liability Not applicable 3 years Yes No

guarantee

Joint and

Qingyuan Hailong Biological December 25 373 August 373 several Technology Co. Ltd 2024 05 2024 liability Not applicable 2 years No No

guarantee

Shaoguan Haida Biotechnology December 25 30 June 17 30 Joint and Co. Ltd 2024 2024 several Not applicable 3 years No No

107liability

guarantee

Shaoguan Zhenjiang District Joint and

Yitun Ecological Agriculture July 27 2021 17400 January several 08 2022 17400 liability Not applicable 8 years No No Co. Ltd guarantee

Shaoguan Zhenjiang District Joint and

Yitun Ecological Agriculture July 27 2021 19200 March 16 several

Co. Ltd 2022

19200 liability Not applicable 8 years No No

guarantee

Joint and

Sihui Haifeng Ecological December 25 66 July 12 132 several Agriculture Co. Ltd 2024 2024 liability Not applicable 3 years No No

guarantee

Joint and

Yongzhou Haida Biotechnology December 25 180.93 July 17 Co. Ltd 2024 2025 180.93

several

liability Not applicable 9 months No No

guarantee

Joint and

Wholly-owned subsidiaries and December 25 400000 January 46262.06 several holding subsidiaries 2024 01 2025 liability Not applicable 1-3 years No No

guarantee

Unused quota December 25 2024 135878.32

The total actual amount

The total amount of guarantees approved for of guarantees to

subsidiaries during the reporting period (B1) 620000 subsidiaries during the 336819.14

reporting period (B2)

The total balance of

The total amount of guarantees approved for actual guarantees to

subsidiaries at the end of the reporting period 773194 subsidiaries at the end 61756.29

(B3) of the reporting period

(B4)

Subsidiary's guarantee to subsidiary

Disclosure Actual Whether

Guaranteed object name date of the Guarantee Actual guarantee Guarantee Collateral Counter-guarantee (if any) Guarantee Is it to

announcement amount date amount type (if any) period fulfilled guarantee

related to the a related

108guarantee party

amount

Joint and

BINH December 25 April 24

DINH HAI LONG CO. LTD 2024 5798.76 2025 1566.59

several

liability Not applicable 1 year Yes No

guarantee

Joint and

BINH DINH HAI LONG CO. December 25

LTD 2024 5623.04

July 10 several

2025 2529.02 liability Not applicable 1 year Yes No

guarantee

Joint and

BINH PHUOC HAI LONG December 25 July 03 several

COMPANY LIMITED 2024 2676.11 2025 559.06 liability Not applicable 4 years No No

guarantee

Joint and

BINH PHUOC HAI LONG December 25

COMPANY LIMITED 2024 4214.98

February several 1 year 4

27 2024 6322.47 liability Not applicable months No No

guarantee

Joint and

BINH PHUOC HAI LONG December 25 3514.4 April 10 821.79 several COMPANY LIMITED 2024 2025 liability Not applicable 1 year Yes No

guarantee

Joint and

HAI DUONG HAID December 25 August several

COMPANY LIMITED 2024 3345.14 29 2025 965.5 liability Not applicable 1 year No No

guarantee

Joint and

HAI DUONG HAID December 25

COMPANY LIMITED 2024 1757.2

May 23

2025685.55

several

liability Not applicable 1 year No No

guarantee

Joint and

HAI DUONG HAID December 25 3514.4 April 03 COMPANY LIMITED 2024 2025 1596.18

several

liability Not applicable 1 year Yes No

guarantee

Joint and

HAI DUONG HAID December 25 6690.28 May 27 several COMPANY LIMITED 2024 2025 1624.03 liability Not applicable 1 year Yes No

guarantee

HAID FEED BANGLADESH December 25 8434.56 December 8434.56 Joint and Not applicable 1 year No No

109LIMITED 2024 22 2025 several

liability

guarantee

Joint and

HAID FEED COMPANY December 25 July 15 several

LIMITED 2024 4014.17 2025 3886.17 liability Not applicable 4 years No No

guarantee

Joint and

HAID FEED COMPANY December 25 2811.52 May 27 4228.66 several LIMITED 2024 2025 liability Not applicable 1 year Yes No

guarantee

Joint and

MEKONG HAI LONG December 25 3211.33 July 15 several COMPANY LIMITED 2024 2025 5915.21 liability Not applicable 3 years No No

guarantee

Joint and

PT.HAIDA AGRICULTURE December 25 February several

INDONESIA 2024 20383.52 04 2025 26412.93 liability Not applicable 1 year Yes No

guarantee

Joint and

PT.HAIDA AGRICULTURE December 25 5623.04 February INDONESIA 2024 26 2025 9950.8

several

liability Not applicable 1 year No No

guarantee

SHENG LONG BIOTECH Joint and Minority shareholders provide

(HAI DUONG) December 25 3345.14 February 3669.74 several counter-guarantee to the INTERNATIONAL CO. 2024 21 2025 liability company according to their 1 year No No

LTD guarantee shareholding ratio

SHENG LONG BIOTECH Joint and Minority shareholders provide

(HAI DUONG) December 25 3951.54 February several counter-guarantee to the 1 year 2 INTERNATIONAL CO. 2024 27 2024 5927.32 liability company according to their months No No

LTD guarantee shareholding ratio

Joint and Minority shareholders provide

SHENG LONG BIO-TECH December 25 16056.66 November several counter-guarantee to the INTERNATIONAL CO LTD 2024 19 2024 21625.79 liability company according to their 5 years No No

guarantee shareholding ratio

Joint and Minority shareholders provide

SHENG LONG BIO-TECH December 25 13380.55 November several counter-guarantee to the INTERNATIONAL CO LTD 2024 15 2024 4183.67 liability company according to their 1 year Yes No

guarantee shareholding ratio

110Joint and Minority shareholders provide

SHENG LONG BIO-TECH December 25 8434.56 July 09 2069.57 several counter-guarantee to the INTERNATIONAL CO LTD 2024 2024 liability company according to their 1 year No No

guarantee shareholding ratio

Joint and Minority shareholders provide

SHENG LONG BIO-TECH December 25 30223.84 November 26272.51 several counter-guarantee to the INTERNATIONAL CO LTD 2024 21 2024 liability company according to their 1 year Yes No

guarantee shareholding ratio

Joint and Minority shareholders provide

SHENG LONG BIO-TECH December 25 May 22 several counter-guarantee to the

INTERNATIONAL CO LTD 2024 10169.22 2025 6008.54 liability company according to their 1 year Yes No

guarantee shareholding ratio

Joint and Minority shareholders provide

SHENG LONG BIO-TECH December 25 10169.22 August 332.48 several counter-guarantee to the INTERNATIONAL CO LTD 2024 22 2025 liability company according to their 1 year No No

guarantee shareholding ratio

SHENGLONG BIO-TECH Joint and Minority shareholders provide

(INDIA) PRIVATE LIMITED December 25 1647.1 March 28 several counter-guarantee to the (Thang Long Biotechnology 2024 2024 33.71 liability company according to their 1 year Yes No

(India) Limited) guarantee shareholding ratio

Joint and Minority shareholders provide

SHENGLONG BIO-TECH December 25 November

(INDIA) PRIVATE LIMITED 2024 5623.04 19 2024 3445.2

several counter-guarantee to the liability company according to their 1 year Yes No

guarantee shareholding ratio

Joint and Minority shareholders provide

SHENGLONG BIO-TECH December 25 2664.52 August 3844.53 several counter-guarantee to the (INDIA) PRIVATE LIMITED 2024 20 2024 liability company according to their 1 year Yes No

guarantee shareholding ratio

Joint and Minority shareholders provide

SHENGLONG BIO-TECH December 25 4423.95 August 1566 several counter-guarantee to the (INDIA) PRIVATE LIMITED 2024 07 2025 liability company according to their 1 year No No

guarantee shareholding ratio

Joint and Minority shareholders provide

SHENGLONG BIO-TECH December 25 3514.4 July 22 3353.47 several counter-guarantee to the (INDIA) PRIVATE LIMITED 2024 2024 liability company according to their 1 year Yes No

guarantee shareholding ratio

THANG LONG (VINH LONG) December 25 November Joint and Minority shareholders provide

BIOTECH CO. LTD 2024 12042.5 22 2024 27172.15 several counter-guarantee to the 3 years No No liability company according to their

111guarantee shareholding ratio

Joint and Minority shareholders provide

THANG LONG (VINH LONG) December 25 14057.6 July 17 20248.87 several counter-guarantee to the BIOTECH CO. LTD 2024 2024 liability company according to their 1 year Yes No

guarantee shareholding ratio

Joint and Minority shareholders provide

THANG LONG (VINH LONG) December 25 10169.22 March 07 4285.5 several counter-guarantee to the BIOTECH CO. LTD 2024 2025 liability company according to their 1 year Yes No

guarantee shareholding ratio

Joint and

VINH LONG HAI DAI CO. December 25 9366.39 August several LTD 2024 07 2025 2149.12 liability Not applicable 3 years No No

guarantee

Joint and

VINH LONG HAI DAI CO. December 25

LTD 2024 5798.76

January 13564.55 several 17 2025 liability Not applicable 1 year Yes No

guarantee

Joint and

VINH LONG HAI DAI CO. December 25 7028.8 February 3157.2 several LTD 2024 18 2025 liability Not applicable 1 year Yes No

guarantee

Joint and

Yangjiang Dehai Biological December 25

Technology Co. Ltd 2024 3000

May 24 3000 several 2024 liability Not applicable 5 years No No

guarantee

Joint and

Yangjiang Dehai Biological December 25 February several

Technology Co. Ltd 2024 1500 11 2025 1500 liability Not applicable 5 years No No

guarantee

Joint and

Huayuan County Yitun several

Ecological Agriculture Co. December 25 November liability

Ltd. Guangzhou Yitun Pig 2024 1800 15 2024 1800 guarantee Not applicable 1 year No No

Industry Investment Co. Ltd

Unused quota December 25 2024 220020.54

During the reporting period the total amount of The total actual amount

guarantees approved for subsidiaries (C1) 480000 234708.44 of guarantees to

112subsidiaries during the

reporting period (C2)

The total balance of

The total amount of guarantees approved for actual guarantees to

subsidiaries at the end of the reporting period 480000 subsidiaries at the end 30811.78

(C3) of the reporting period

(C4)

The total amount of company guarantees (that is the total of the first three items)

The total amount of

The total amount of approved guarantees during guarantees actually

the reporting period (A1 + B1 + C1) 1545000 incurred during the 1267788.93 reporting period (A2 +

B2 + C2)

Total actual guarantee

The total amount of guarantees approved at the 1698194 balance at the end of the end of the reporting period (A3 + B3 + C3) reporting period (A4 + 352504.95

B4 + C4)

The proportion of the total guarantee balance (ie A4 + B4 + C4) to the

company's net assets 14.54%

Of which:

Balance of guarantees provided to shareholders actual controllers and their

related parties (D) 0

Debt guarantee balance provided directly or indirectly to the guaranteed

object with an asset-liability ratio exceeding 70% (E) 28757.53

Amount of total guarantees exceeding 50% of net assets (F) 0

The total amount of the above three guarantees (D + E + F) 28757.53

For unexpired guarantee contracts a description of the circumstances in

which the guarantee liability occurred during the reporting period or there is During the reporting period the company has paid a total of RMB 66227200 for overdue guarantees

evidence that it is possible to bear joint and several liability for repayment (if completed the recovery of RMB 15882900 and the rest are still in the process of recovery.any)

Instructions for providing external guarantees in violation of prescribed

procedures (if any) Not applicable.Note:

1131. If the "actual occurrence date" is earlier than the "disclosure date of the relevant announcement of the guarantee quota" it is the guarantee business whose quota

has been considered to be extended or renewed during the reporting period when it first occurs;

2. The "actual guarantee amount" refers to the accumulated guarantee amount during the reporting period including the relevant amount after the guarantee was

provided and then released during the reporting period.

3. The amount of the subsidiary's external guarantee is converted according to the company's shareholding ratio in the subsidiary.

4. Foreign currency guarantees are converted at the intermediate exchange rate at the end of the reporting period.

1143. Entrusting others to manage cash assets

(1) Entrusted financial management

□Applicable □ Not applicable

Overview of entrusted wealth management during the reporting period

Unit: ten thousand yuan

The balance of entrusted

Product category Risk characteristics wealth management during Overdue amount

the reporting period

Bank wealth management

products Medium and low risk 142500 0

Brokerage financial products Medium and low risk 58000 0

As a single principal the company entrusts a financial institution to carry out asset

management or the specific situation of high-risk entrusted wealth management with low

investment security and poor liquidity

□Applicable □ Not applicable

Unit: ten thousand yuan

The The

actual actual

amoun recover Summa

Type t of y of ry of Trustee of Risk Investm profit profits matters Name (or

Trustee trustee characteris

Product Amou Start Terminat ent and and and

(or tics type nt date ion date directio loss losses related Name) trustee) n during during query the the index

reporti reporti (if any)

ng ng

period period

CITIC The

Securities product

Asset has not

Manage Securitie been

ment s redeem

Xinxin Medium companie June ed and Xiangron Securit and low s issue 2000 26 June 26 Debt the

Not

g ies 16.23 risk wealth 2025 2026 assets profit

applica

Exclusive managem and ble

No. 2 ent loss are

Collectiv products reflecte

e Asset d in the

Manage net

ment Plan value

CITIC Securitie The

Securities s product

Asset Medium companie has not Not

Manage Securities and low s issue

2000 July 30 July 30 Debt

ment risk wealth 0 2025 2026 assets

146.56 been applica

redeem ble

Xinxin managem ed and

Xiangron ent the

115g products profit

Exclusive and

No. 2 loss are

Collectiv reflecte

e Asset d in the

Manage net

ment Plan value

CITIC The

Securities product

Asset has not

Manage Securitie been

ment s redeem

Xinxin companie ed and

Xiangron Securit Medium Novem Novemb Not

g ies and low

s issue 2000

wealth 0 ber 04 er 04

Debt

assets 34.98

the

profit applica

Exclusive risk managem 2025 2026 and ble

No. 2 ent loss are

Collectiv products reflecte

e Asset d in the

Manage net

ment Plan value

CITIC The

Securities product

Asset has not

Manage Securitie been

ment s redeem

Xinxin companie ed and

Xiangron Securit Medium Novem Novemb Not

g ies and low

s issue

wealth 6000 ber 04 er 04

Debt 10.49 the applica

Exclusive risk managem 2025 2026

assets profit

and ble

No. 2 ent loss are

Collectiv products reflecte

e Asset d in the

Manage net

ment Plan value

CITIC The

Securities product

Asset has not

Manage Securitie been

ment s redeem

Xinxin companie ed and

Xiangron Securit Medium s issue 1000 Decem Decemb Debt the Not

g ies and low risk wealth 0

ber 10 er 10 assets 26.26 profit applica

Exclusive managem 2025 2026 and ble

No. 2 ent loss are

Collectiv products reflecte

e Asset d in the

Manage net

ment Plan value

Total 58000 -- -- -- 234.52 -- --

(2) Entrusted loans

□ Applicable □Not Applicable

There was no entrusted loan in the company during the reporting period.

1164. Other major contracts

□ Applicable □Not Applicable

There were no other major contracts in the company during the reporting period.XVI. Use of raised funds

□ Applicable □Not Applicable

The company had no use of raised funds during the reporting period.XVII. Explanation of other important matters

□ Applicable □Not Applicable

There were no other major events that need to be explained during the reporting period of the

company.XVIII. Major events of the company's subsidiaries

□Applicable □ Not applicable

The Company held the third meeting of the seventh board of directors and the fourth

extraordinary shareholders meeting of 2025 on October 16 2025 and November 14 2025

respectively and reviewed and approved the "Proposal on the Spin-off of its subsidiary Haida

International Holdings Limited on the Main Board of the Hong Kong Stock Exchange" and

other proposals related to this spin-off and listing For details please refer to the "Plan on Spin-

off of Subsidiary Haida International Holdings Limited to Listing on the Main Board of the

Hong Kong Stock Exchange" and related announcements (Announcement Nos. 2025-049

2025-050 2025-059) disclosed by the company on the designated information disclosure media

Juchao Information Network (http://www.cninfo.com.cn) on October 18 2025 and November

152025.

On January 12 2026 Haid Holdings submitted to the Hong Kong Stock Exchange the

application documents for an initial public offering and listing on the main board of the Hong

117Kong Stock Exchange. As of the date of issuance of this annual report the spin-off and listing

is still in progress.

118Section 6 Changes in Shares and Shareholders

I. Changes in shares

1. Changes in shares

Unit: share

Before this change Increase or decrease in this change (+ -) After this change

Issue Provident

Quantity Proportio new Bonu fund othe Subtotan share s conversio r l Quantity

Proportio

n

s n

I. Shares

subject to

sales 1228667 0.07% 1228667 0.07%

restrictions

1. State

shareholding

2. State-

owned legal

person

holding

shares

3. Other

domestic 1228667 0.07% 1228667 0.07%

shares

Of

which:

domestic

legal person

holdings

Domesti

c natural

person 1228667 0.07% 1228667 0.07%

holdings

4. Foreign

shareholding

Of

which:

overseas

legal person

holdings

Shares

held by

foreign

natural

persons

II.Unrestricted 166252130 99.93% 1662521303 3 99.93% Shares

1. RMB

ordinary 166252130 99.93% 166252130 99.93%

shares 3 3

2.

Domestically

119listed foreign

shares

3. Foreign

shares listed

overseas

4. Other

III. Total

number of 166374997 100.00% 166374997 100.00%

shares 0 0

Reasons for changes in shares

□ Applicable □Not Applicable

Approval of changes in shares

□ Applicable □Not Applicable

Transfer of share changes

□ Applicable □Not Applicable

The impact of share changes on financial indicators such as basic and diluted earnings per

share net assets per share attributable to the company's common shareholders in the most

recent year and the most recent period

□ Applicable □Not Applicable

Other disclosures that the company deems necessary or required by securities regulators

□ Applicable □Not Applicable

2. Changes in restricted shares

□ Applicable □Not Applicable

II. Securities Issuance and Listing

1. Securities issuance (excluding preferred shares) during the reporting period

□ Applicable □Not Applicable

1202. Explanation of changes in the total number of shares of the company and the

structure of shareholders and changes in the structure of the company's assets and

liabilities

□ Applicable □Not Applicable

3. Existing internal employee shares

□ Applicable □Not Applicable

III. Shareholders and actual controllers

1. The number of shareholders and shareholding of the company

Unit: share

The total The total

number of number of

Total ordinary preferred

number of shareholder shareholde

The total number of

preferred shareholders

common s at the end rs whose of the voting (if any) whose voting shareholde

rs at the 22454 previous 24178 rights were 0

rights were restored at

month restored at the end of the previous

0

end of the before the the end of month before the reporting

period disclosure the

disclosure date of the

date of the reporting annual report

annual period (if

report any)

Shareholding of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent

through refinancing)

Number of Number The Pledge mark or

Name of Nature of shares held Changes of shares number of freeze

shareholde Shareholde Shareholdi at the end during the subject to shares held

r rs ng ratio of the reporting sales without Share reporting period restrictio selling status Quantity

period ns restrictions

Guangzhou Domestic

Haihao non-state-

Investment owned 54.73%

9105893 0 0 91058935 Pledge 549600059 9 0

Co. Ltd legal person

Hong

Kong

Securities Foreign Not

Clearing legal 3.91%

6501292-

person 4 45926988

0 65012924 applicabl 0

Company e

Limited

Industrial

and

Commerci 2800000 - Not

al Bank Of other 1.68% 0 13300000 0 28000000 applicabl 0

China Ltd. e

- Invesco

121Great Wall

Emerging

Growth

Hybrid

Securities

Investment

Fund

National

Social Not

Security other 1.37% 22809652 11925420 0 22809652 applicabl 0 Fund 106 e

Portfolio

Industrial

and

Commerci

al Bank Of

China Ltd.- Huatai

Bai Rui Not

CSI 300 other 0.83%

1378839

8 -642621 0 13788398 applicabl 0

Trading e

Open-end

Index

Securities

Investment

Fund

Bank of

China Ltd.- Invesco

Great Wall

Dingyi Not

Hybrid other 0.80%

1339130

0 -2608599 0 13391300 applicabl 0

Securities e

Investment

Fund

(LOF)

Industrial

and

Commerci

al Bank Of

China Ltd.- CSI

Major 1207873 Not

Consumer other 0.73% 5 4734296 0 12078735 applicabl 0

Trading e

Open-end

Index

Securities

Investment

Fund

National

Social Not

Security other 0.66% 11011618 5019138 0 11011618 applicabl 0

Fund 109 e

Portfolio

China

Zheshang

Bank Co.Ltd. -

Cathay

Pacific CSI 1082143 Not

Animal other 0.65% 9 3581553 0 10821439 applicabl 0

Husbandry e

Trading

Open

Index

Securities

122Investment

Fund

China

Constructi

on Bank

Corporatio

n - E Fund

CSI 300 Not

Trading other 0.59% 9822362 -96600 0 9822362 applicabl 0

Open-end e

Index-

Initiated

Securities

Investment

Fund

Strategic investors or

general legal persons

become the top 10

shareholders due to the Not applicable

placement of new shares

(if any)

Among the above-mentioned top 10 shareholders the first shareholder is the controlling

Description of the above- shareholder of the company and the first shareholder does not have an associated relationship

mentioned shareholders' with other shareholders nor is it a party acting in concert; it is unknown whether other

connected relationship or shareholders are parties acting in concert as stipulated in the Measures for the Administration

concerted action of Acquisitions of Listed Companies and it is also unknown whether there is an associated

relationship among other shareholders.Explanation of the above

shareholders involved in

entrusted/entrusted voting Not applicable

rights and abstention

from voting rights

Special instructions for

repurchasing special At the end of the reporting period the balance of shares in the special securities account

accounts among the top repurchased by Guangdong Haid Group Co. Ltd. was 13.259 million shares which were not

10 shareholders (if any) included in the list of the top 10 shareholders.

Shareholding of the top 10 shareholders with unrestricted sales conditions (excluding shares lent through refinancing and

locked shares by executives)

Name of shareholder The number of unrestricted shares held at the end of

Type of shares

the reporting period Type of shares Quantity

Guangzhou Haihao

Investment Co. Ltd 910589359

RMB ordinary

shares 910589359

Hong Kong Securities

Clearing Company 65012924 RMB ordinary shares 65012924 Limited

Industrial and

Commercial Bank Of

China Ltd. - Invesco RMB ordinary

Great Wall Emerging 28000000 shares 28000000

Growth Hybrid Securities

Investment Fund

National Social Security 22809652 RMB ordinary Fund 106 Portfolio shares 22809652

Industrial and

Commercial Bank Of

China Ltd. - Huatai Bai

Rui CSI 300 Trading 13788398 RMB ordinary 13788398

Open-end Index shares

Securities Investment

Fund

Bank of China Ltd. -

Invesco Great Wall RMB ordinary

Dingyi Hybrid Securities 13391300 shares 13391300

Investment Fund (LOF)

123Industrial and

Commercial Bank Of

China Ltd. - CSI Major 12078735 RMB ordinary Consumer Trading Open- shares 12078735

end Index Securities

Investment Fund

National Social Security

Fund 109 Portfolio 11011618

RMB ordinary

shares 11011618

China Zheshang Bank

Co. Ltd. - Cathay Pacific

CSI Animal Husbandry RMB ordinary

Trading Open Index 10821439 shares 10821439

Securities Investment

Fund

China Construction Bank

Corporation - E Fund CSI

300 Trading Open-end 9822362 RMB ordinary

Index-Initiated Securities shares

9822362

Investment Fund

Description of the

relationship or concerted

action among the top 10 Among the top 10 shareholders mentioned above the first shareholder is the controlling

shareholders of tradable shareholder of the company and the first shareholder does not have an associated

shares without tradable relationship with other shareholders nor is it a party acting in concert; it is unknown whether

shares and between the other shareholders are parties acting in concert as stipulated in the Measures for the

top 10 shareholders of Administration of Acquisitions of Listed Companies and it is also unknown whether there is

tradable shares without an associated relationship among other shareholders

tradable shares and the

top 10 shareholders

Description of the top 10

common shareholders

participating in margin Not applicable

financing and securities

lending business (if any)

Shareholders holding more than 5% of the shares the top 10 shareholders and the top 10

shareholders of tradable shares without selling restrictions participated in the refinancing

business and lent shares

□ Applicable □Not Applicable

The top 10 shareholders and the top 10 shareholders of tradable shares without selling

restrictions have changed from the previous period due to refinancing lending/return

□ Applicable □Not Applicable

Whether the company's top 10 common shareholders and top 10 common shareholders with

unrestricted sales conditions conducted agreed repurchase transactions during the reporting

period

□Yes □No

The top 10 common shareholders of the company and the top 10 common shareholders with

unrestricted sales conditions did not conduct agreed repurchase transactions during the

124reporting period.

2. The controlling shareholder of the company

Nature of controlling shareholder: natural person holding

Controlling shareholder type: legal person

Name of controlling Legal

shareholder representative/person

Date of Organization code Main business

in charge of the unit establishment

Enterprise's own

capital investment;

commodity wholesale

trade (except for

licensed

commodities);

Guangzhou Haihao September commodity retail trade

Investment Co. Ltd Xue Hua 27 2006 91440113793877530G (except for licensed commodities); import

and export of goods

(except for franchised

and controlled

commodities);

technology import and

export

Equity situation of other

domestic and overseas listed

companies that the

controlling shareholder No

controls and participates in

during the reporting period

Change of controlling shareholder during the reporting period

□ Applicable □Not Applicable

The controlling shareholder of the company did not change during the reporting period.

3. The actual controller of the company and those acting in concert

Nature of actual controller: domestic natural person

Type of actual controller: natural person

Whether to obtain the right

Name of actual controller Relationship with the actual controller Nationality of abode in other countries or regions

Xue Hua Myself China No

Main occupation and position Chairman and President (General Manager)

Domestic and overseas listed

companies that have held Not applicable

holdings in the past 10 years

125Change of actual controller during the reporting period

□ Applicable □Not Applicable

The actual controller of the company did not change during the reporting period.Block diagram of the property rights and control relationship between the company and the

actual controller

The actual controller controls the company through trust or other asset management methods

□ Applicable □Not Applicable

4. The cumulative number of pledged shares of the company's controlling shareholder or

the largest shareholder and its concerted parties accounted for 80% of the company's

shares held by them

□ Applicable □Not Applicable

5. Other corporate shareholders holding more than 10% of the shares

□ Applicable □Not Applicable

6. Controlling shareholders actual controllers restructuring parties and other

commitment entities are restricted from reducing their shareholdings

□ Applicable □Not Applicable

126IV. The specific implementation of share repurchase during the reporting period

Progress in the implementation of share repurchase

□Applicable □ Not applicable

The

proportion of

the number

Amount to of

Program Number of Percentage be Proposed Number of repurchased

disclosure shares to be of total repurchased Repurchase shares shares to the

time repurchased share (ten

repurchase use repurchased underlying

(shares) capital thousand period (shares) shares

yuan) involved in

the equity

incentive

plan (if any)

It is used to

cancel the

registered

capital

according to

From law and continue to

October 16129033 0.97% 100000 2025-11-～ ～ ～ implement

29 2025 25806451 1.55% 160000 14 to the company's 13194845 2026-04-

13 equity incentive plan

and/or

employee

stock

ownership

plan

The progress of the implementation of the use of centralized bidding transactions to reduce

the shareholding of repurchased shares

□ Applicable □Not Applicable

V. Preferred Shares

□ Applicable □Not Applicable

During the reporting period the company did not have preferred shares.

127Section 7 Bond Related Information

□ Applicable □Not Applicable

128Section 8 Financial Report

Audit report

Type of audit opinion Standard unqualified opinion

Audit report signing date April 24 2026

Audit institution name Grant Thornton Zhitong Certified Public Accountants LLP

Audit report number GTCNSZ（2026）NO. 440A016327

CPA name Li Xujia Qiu Shuntong

Auditor’s Report

To the Shareholders of Guangdong Haid Group Co. Ltd.I. Opinion

We have audited the financial statements of Guangdong Haid Group Co. Ltd. (the “Company”) which

comprise the consolidated balance sheet as of December 31 2025 and the consolidated income statement

consolidated statement of changes in shareholders’ equity and consolidated statement of cash flows for the

year then ended and the notes to the consolidated financial statements.In our opinion the accompanying financial statements present fairly in all material respects the consolidated

and the Company’s financial position as of December 31 2025 and the consolidated and the Company’s

financial performance and cash flows for the year then ended in accordance with Accounting Standards for

Business Enterprises.II. Basis for Opinion

We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those

standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statement

section of our report. We are independent of the Company in accordance with the Code of Ethics for Chinese

Certified Public Accountant (the “Ethics Code”) together with the Independence Standards for Chinese

Certified Public Accountant to audits of financial statements of public interest entities and we fulfilled our

other ethical responsibilities in accordance with these requirements and the Ethics Code. We believe that the

audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.III. Key audit matters

The key audit matters are those matters that in our professional judgment are of most significance in our

audit of the financial statements of the current period. These matters are addressed in the context of our audit

of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate

opinion on these matters.(I) Revenue Recognition

129Please refer to Note III. 29 and Note V. 52 in the Notes to the Financial Statements for the disclosure of

revenue recognition.

1. Description

The Company is mainly engaged in feed production and sales. We identified revenue recognition as a key

audit matter because operating income is one of the Company’s key performance indicators and there is an

inherent risk that management may manipulate the timing of revenue recognition to achieve specific goals

or expectations.

2. How Our Audit Addressed the Key Audit Matter

(1) We understood and evaluated the design effectiveness of internal controls related to revenue recognition.

We tested the operating effectiveness of key internal controls.

(2) We assessed whether the identification of performance obligations the allocation of transaction prices

and the determination of when control of the related goods or services is transferred were consistent with the

Company’s business model and in compliance with the applicable Accounting Standards for Business

Enterprises.

(3) We performed analytical procedures to evaluate the reasonableness of changes in revenue and gross

margin; We examined the monthly average sales price of the Company’s major products and compared them

with the corresponding data from the prior period.

(4) We reviewed the profile of the key customers and searched their relevant information through public

channels to assess whether there is any related-party relationship with the Company.

(5) To test the authenticity and completeness of revenue we inspected the supporting documents related to

revenue recognition and reviewed the relevant documents. Additionally we reconciled and analyzed the

sales data within the Company’s logistics system with the information in the financial system.

(6) To evaluate the accuracy and completeness of revenue we performed confirmation procedures on revenue.

(7) We performed revenue cut-off testing as of the balance sheet date to evaluate whether revenue was

recognized in the appropriate period.(II) Expected Credit Losses on Accounts Receivable

Please refer to Note III. 11 (6) and Note V. 4 in the Notes to the Financial Statements for the disclosure of

expected credit losses on accounts receivable.

1. Description

The Company’s management evaluated the expected credit losses on accounts receivable both individually

and collectively by considering past events current situations and forecasts of future economic trends.Except for accounts receivable with provision of bad and doubtful debts made individually the management

classified the accounts receivable into corresponding portfolios based on similar credit risk characteristics.For these portfolios the management prepared comparison table of the accounts receivable aging and

expected credit loss rate based on the historical credit losses in conjunction with the current situation and

predictions of future economic conditions to calculate the expected credit losses.We identified expected credit losses on accounts receivable as a key audit matter because the Company’s

130process involved significant accounting estimates and judgments to determine the expected credit losses and

their impact on the financial statements was material.

2. How Our Audit Addressed the Key Audit Matter

(1) We understood and evaluated the design effectiveness of internal controls related to expected credit losses

on accounts receivable. We tested the operating effectiveness of key internal controls.

(2) For accounts receivable that were measured expected credit losses based on portfolio of credit risk

characteristics we evaluated the appropriateness of the portfolio classification reviewed the appropriateness

of the historical losses rate and prospective adjustment calculated using the migration rate model and

assessed whether the expected credit losses were adequately determined.

(3) We selected samples based on the distribution of accounts receivable as of the balance sheet date and the

revenue for the current year and performed confirmation procedure on these accounts receivable. We then

compared the confirmation results with the Company’s book records.

(4) For accounts receivables with significant balances as of balance sheet date or with long aging we selected

samples to examine the customers’ operating situation historical payment records and subsequent payments

made after the balance sheet date.(III) Inventory Provision

Please refer to Note III. 13 and Note V.7 in the Notes to the Financial Statements for disclosure of inventory

provision.

1. Description

The Company measures its inventories at the lower of cost and net realizable value. Net realizable value is

defined as the estimated selling price less the estimated costs to completion estimated selling expenses and

relevant tax expenses. The Company determines net realizable value based on conclusive evidence

considering the purpose for holding the inventories and the impact of subsequent events after the balance

sheet date.We identified inventory provision as a key audit matter because the inventory balance was material as of

December 31 2025 and determining the net realizable value required significant judgment from the

management.

2. How Our Audit Addressed the Key Audit Matter

(1) We understood evaluated and tested the design and operating effectiveness of internal controls related to

inventory.

(2) We performed inventory observation procedures to verify the quantity and condition of the inventories.

(3) We obtained the inventory provision calculation schedule and performed inventory provision testing to

analyze whether the inventory provision was adequate.

(4) We obtained the inventory list as of December 31 2025. We performed analytical review of inventories

with long aging considering their condition and evaluated the appropriateness of inventory provision.

(5) For inventory provision accrued in prior year we inspected its movement in the current period.

131(6) For products with available open market price we selected samples to perform independent research and

compared the open market price to the Company’s estimated selling price. For products without available

open market price we compared the Company’s estimated selling price to their most recent actual sales price

the actual sales price in the subsequent period or the actual sales price of similar products to evaluate if the

inventory provision was adequate.IV. Other Information

The Company’s management is responsible for the other information. The other information comprises all

of the information included in the Company’s 2025 Annual Report other than 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 this other

information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for Financial Statements

The Company’s management is responsible for the preparation of the financial statements that give a fair

view in accordance with the Accounting Standards for Business Enterprises and for designing implementing

and maintaining such internal control as the management determines is necessary to enable the preparation

of financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements 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 have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Auditor’s Responsibilities for Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement whether due to fraud or error and to issue an auditor’s report that includes our

opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in

accordance with China Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the aggregate

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.As part of an audit in accordance with CAS we exercise professional judgment and maintain professional

skepticism throughout the audit. We also:

(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or

error design and perform audit procedures responsive to those risks and obtain audit evidence that is

132sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement

resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery

intentional omissions misrepresentations or the override of internal control.

(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that

are appropriate in the circumstances.

(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates

and related disclosures made by the management.

(4) Concluded on the appropriateness of the management’s use of the going concern basis of accounting and

based on the audit evidence obtained whether a material uncertainty exists related to events or conditions

that may cast significant doubt on the Company’s ability to continue as a going concern. If we concluded that

a material uncertainty exists we are required to draw attention in our auditor’s report to the related disclosures

in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are

based on the audit evidence obtained up to the date of our auditor’s report. However further events or

conditions may cause the Company to cease to continue as a going concern.

(5) Evaluate the overall presentation structure and content of the financial statements and whether the

financial statements represent the underlying transactions and events in a manner that achieves fair

presentation.

(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business

activities within the Company to express an opinion on the financial statements. We are responsible for the

direction supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicated with those charged with governance regarding among other matters the planned scope

and timing of the audit and significant audit findings including any significant deficiencies in internal control

that we identified during our audit.We also provided those charged with governance with a statement that we have complied with relevant ethical

requirements regarding independence and communicated with them all relationships and other matters that

may reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that are of

most significance in the audit of the financial statements of the current period and are therefore the key audit

matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure

about the matter or when in extremely rare circumstances we determine that a matter should not be

communicated in our report because the adverse consequences of doing so would reasonably be expected to

outweigh the public interest benefits of such communication.

133Financial statements

All amounts in the Notes to the Financial Statements are expressed in RMB.

1. Consolidated Balance Sheet

Prepared by: Guangdong Haid Group Co. Ltd.Expressed in RMB

Item 2025.12.31 2024.12.31

Current assets:

Cash and cash equivalents 3202836313.58 3478256875.63

Deposit reservation for balance 0.00 0.00

Loans to other banks 0.00 0.00

Held-for-trading financial assets 2118734927.43 4662427829.82

Derivative financial assets 0.00 0.00

Notes receivable 34343827.27 26837359.79

Accounts receivable 2978763231.09 2125872345.43

Accounts receivable financing 0.00 0.00

Prepayments 898028973.32 628293443.54

Premiums receivable 0.00 0.00

Reinsurance accounts receivable 0.00 0.00

Reinsurance contract reserves receivable 0.00 0.00

Other receivables 678782287.52 877870681.54

Including: Interest receivable 0.00 0.00

Dividends receivable 0.00 0.00

Financial assets held under resale agreements 0.00 0.00

Inventories 11371777008.15 11290384103.30

Including: Data resources 0.00 0.00

Contract assets 0.00 0.00

Assets held-for-sale 0.00 641999.09

Non-current assets due within one year 16869873.84 3841618.60

Other current assets 438119835.94 394689868.63

Total current assets 21738256278.14 23489116125.37

Non-current assets:

Loans and advances to customers 0.00 0.00

Debt investments 0.00 0.00

Other debt investments 0.00 0.00

Long-term receivables 218462655.69 169130714.29

Long-term equity investments 305960124.82 280217892.86

Investments in other equity instruments 0.00 0.00

134Item 2025.12.31 2024.12.31

Other non-current financial assets 245857402.68 238380604.68

Investment properties 47197067.54 92624790.99

Fixed assets 17007956953.83 16930687726.99

Construction in progress 603959168.05 426719987.46

Productive biological assets 478298798.43 465887321.92

Oil and gas assets 0.00 0.00

Right-of-use assets 2848775741.09 2769825756.21

Intangible assets 1898205575.03 1796432121.25

Including: Data resources 0.00 0.00

Development costs 58343976.60 46582788.74

Including: Data resources 0.00 0.00

Goodwill 391322506.75 245178825.99

Long-term deferred expenses 417290154.13 295462632.97

Deferred tax assets 1022909749.23 726995506.26

Other non-current assets 307915733.10 167343863.72

Total non-current assets 25852455606.97 24651470534.33

Total assets 47590711885.11 48140586659.70

Current liabilities:

Short-term loans 1163647077.79 251739887.29

Borrowings from the central bank 0.00 0.00

Borrowings from other banks 0.00 0.00

Held-for-trading financial liabilities 64970335.96 77390252.93

Derivative financial liabilities 0.00 0.00

Notes payable 3812737586.75 4995201488.07

Accounts payable 5726047396.44 5483061495.95

Advances from customers 5111059.70 4248165.06

Contract liabilities 2581711607.32 2251063282.58

Financial assets sold under agreement to repurchase 0.00 0.00

Customer deposits and due to banks and other financial

institutions 0.00 0.00

Securities brokering 0.00 0.00

Securities underwriting 0.00 0.00

Employee benefits payable 2495052562.79 2166662287.79

Taxes payable 373791899.89 359399237.64

Other payables 1519032906.76 952217282.62

Including: Interest payables 0.00 0.00

Dividends payable 0.00 92085342.39

Fee and commissions income payable 0.00 0.00

Amount due to reinsurer 0.00 0.00

135Item 2025.12.31 2024.12.31

Liabilities held-for-sale 0.00 0.00

Non-current liabilities due within one year 512564985.67 1229927887.97

Other current liabilities 759109813.20 763875809.34

Total current liabilities 19013777232.27 18534787077.24

Non-current liabilities:

Reserve of insurance contract 0.00 0.00

Long-term loans 249637310.50 1769821334.89

Debentures payable 0.00 0.00

Including: Preference shares 0.00 0.00

Perpetual debts 0.00 0.00

Lease liabilities 2155819284.66 2015568878.94

Long-term payables 53622597.72 67132880.83

Long-term employee benefits payable 144505946.60 142173512.17

Provisions 0.00 0.00

Deferred income 330565472.30 349550038.04

Deferred tax liabilities 131452417.03 140158361.24

Other non-current liabilities 11532893.24 24960906.42

Total non-current liabilities 3077135922.05 4509365912.53

Total liabilities 22090913154.32 23044152989.77

Shareholders' equity:

Share capital 1663749970.00 1663749970.00

Other equity instruments 0.00 0.00

Including: Preference shares 0.00 0.00

Perpetual debts 0.00 0.00

Capital reserve 4614057180.72 5151357352.87

Less: Treasury stock 870133667.50 300081705.48

Other comprehensive income -310781746.53 356509145.52

Specific reserve 1477355.46 835404.85

Surplus reserve 831874985.00 831874985.00

General risk provision 2511685.80 2389821.53

Retained earnings 18316085114.07 16198667745.26

Total equity attributable to shareholders of the parent company 24248840877.02 23905302719.55

Non-controlling interests 1250957853.77 1191130950.38

Total shareholders' equity 25499798730.79 25096433669.93

Total liabilities and shareholders' equity 47590711885.11 48140586659.70

Legal representative: Xue Hua

Person in charge of accounting function: Yang Shaolin

Person in charge of accounting department: Yang Shaolin

1362. Company Balance Sheet

Expressed in RMB

Item 2025.12.31 2024.12.31

Current assets:

Cash and cash equivalents 800809667.22 1349771214.43

Held-for-trading financial assets 1636403544.09 3916158115.71

Derivative financial assets 0.00 0.00

Notes receivable 11009586.18 18335530.49

Accounts receivable 88350.77 3741.00

Accounts receivable financing 0.00 0.00

Prepayments 434087.49 10466995.29

Other receivables 6028955843.98 9964613349.06

Including: Interest receivable 0.00 0.00

Dividends receivable 0.00 359974200.00

Inventories 44150761.34 88344171.47

Including: Data resources 0.00 0.00

Contract assets 0.00 0.00

Assets held-for-sale 0.00 641999.09

Non-current assets due within one year 0.00 0.00

Other current assets 81260160.58 34060885.46

Total current assets 8603112001.65 15382396002.00

Non-current assets:

Debt investments 0.00 0.00

Other debt investments 0.00 0.00

Long-term receivables 20848355.92 18845785.23

Long-term equity investments 13633906853.26 11123066584.65

Investments in other equity instruments 0.00 0.00

Other non-current financial assets 230984493.57 223504503.57

Investment properties 3179485.35 20834616.72

Fixed assets 202563197.95 362053853.38

Construction in progress 71088467.32 55777553.85

Productive biological assets 0.00 0.00

Oil and gas assets 0.00 0.00

Right-of-use assets 504744222.34 524883644.72

Intangible assets 158897281.53 150125142.55

Including: Data resources 0.00 0.00

Development costs 57126889.22 43586516.01

Including: Data resources 0.00 0.00

Goodwill 0.00 0.00

137Item 2025.12.31 2024.12.31

Long-term deferred expenses 205405718.33 134444955.06

Deferred tax assets 198531224.54 27157162.74

Other non-current assets 14485355.03 4967313.80

Total non-current assets 15301761544.36 12689247632.28

Total assets 23904873546.01 28071643634.28

Current liabilities:

Short-term loans 0.00 0.00

Held-for-trading financial liabilities 0.00 172234.37

Derivative financial liabilities 0.00 0.00

Notes payable 3812737586.75 4995201488.07

Accounts payable 102071059.56 113451141.04

Advances from customers 0.00 498532.00

Contract liabilities 5000.00 103863.84

Employee benefits payable 407991167.51 327808933.79

Taxes payable 2203437.90 1613014.11

Other payables 7670511307.56 7822320686.64

Including: Interest payables 0.00 0.00

Dividends payable 0.00 0.00

Liabilities held-for-sale 0.00 0.00

Non-current liabilities due within one year 86759903.82 597692302.50

Other current liabilities 19165205.06 35667876.45

Total current liabilities 12101444668.16 13894530072.81

Non-current liabilities:

Long-term loans 78137500.00 572687500.00

Debentures payable 0.00 0.00

Including: Preference shares 0.00 0.00

Perpetual debts 0.00 0.00

Lease liabilities 458226363.55 462036089.00

Long-term payables 171182.00 0.00

Long-term employee benefits payable 16678910.39 16736269.33

Provisions 0.00 0.00

Deferred income 17150739.14 23494128.00

Deferred tax liabilities 0.00 0.00

Other non-current liabilities 0.00 13000000.00

Total non-current liabilities 570364695.08 1087953986.33

Total liabilities 12671809363.24 14982484059.14

Shareholders' equity:

Share capital 1663749970.00 1663749970.00

Other equity instruments 0.00 0.00

138Item 2025.12.31 2024.12.31

Including: Preference shares 0.00 0.00

Perpetual debts 0.00 0.00

Capital reserve 5643731428.92 5549414081.28

Less: Treasury stock 870133667.50 300081705.48

Other comprehensive income 0.00 -648028.08

Specific reserve 0.00 0.00

Surplus reserve 831874985.00 831874985.00

Retained earnings 3963841466.35 5344850272.42

Total shareholders' equity 11233064182.77 13089159575.14

Total liabilities and shareholders' equity 23904873546.01 28071643634.28

3. Consolidated Income Statement

Expressed in RMB

Item Year ended Year ended 31/12/2025 31/12/2024

I. Operating income 128468230914.96 114601056662.29

Including: Operating income 128468230914.96 114601056662.29

Interest income 0.00 0.00

Premium earned 0.00 0.00

Fee and commission income 0.00 0.00

II. Operating costs 123084750006.30 108813860835.95

Including: Operating costs 115193343614.54 101639577488.17

Interest expenses 0.00 0.00

Fee and commission expense 0.00 0.00

Cash surrender value 0.00 0.00

Net claim settlement expenses 0.00 0.00

Net insurance reserves 0.00 0.00

Policy dividend expense 0.00 0.00

Reinsurance expense 0.00 0.00

Taxes and surcharges 164344585.09 148670999.79

Selling and distribution expenses 2838918272.58 2608350800.44

General and administrative expenses 3699769055.55 3187514888.49

Research and development expenses 933395251.56 860035315.34

Financial expenses 254979226.98 369711343.72

Including: Interest expenses 157345198.83 294041457.45

Interest income 33272254.65 63367108.52

Add: Other income 131216405.47 133786822.95

Investment income ("-" for losses) -42408720.31 -8829799.95

139Item Year ended Year ended 31/12/2025 31/12/2024

Including: Income from investment in associates and

joint ventures 25427228.02 39786542.41

Income from derecognition of financial assets

measured at amortized cost ("-" for losses) -1562481.87 -746985.21

Exchange gains ("-" for losses) 0.00 0.00

Net exposure hedge income ("-" for losses) 0.00 0.00

Gains from changes in fair value ("-" for losses) -26991930.86 25285899.79

Credit losses ("-" for losses) -148718379.10 -264471205.52

Impairment losses ("-" for losses) -47086754.23 -219506218.82

Gains from assets disposal ("-" for losses) -6526439.92 53544318.29

III. Operating profit ("-" for losses) 5242965089.71 5507005643.08

Add: Non-operating income 69290537.75 68867810.54

Less: Non-operating expenses 128793889.30 182190876.85

IV. Profit before income tax ("-" for losses) 5183461738.16 5393682576.77

Less: Income tax expenses 638067946.83 717586978.50

V. Net profit for the year ("-" for losses) 4545393791.33 4676095598.27

(I) Classification according to operation continuity

1. Net profit from continuing operations ("-" for net

loss) 4545393791.33 4676095598.27

2. Net profit from discontinued operations ("-" for net

loss) 0.00 0.00

(II) Attributable to:

1. Shareholders of the parent company ("-" for net

loss) 4280330734.08 4503995518.39

2. Non-controlling interests ("-" for net loss) 265063057.25 172100079.88

VI. Other comprehensive income net of tax -678995553.24 46538882.52

Other comprehensive income (net of tax) attributable

to shareholders of the parent company -667290892.05 57468771.21

(I) Items that will not be reclassified to profit or loss -16285.27 0.00

1. Gains (losses) on remeasurement of defined

benefit plan liabilities or assets -16285.27 0.00

2. Other comprehensive income not to be

reclassified to profit or loss under the equity method 0.00 0.00

3. Changes in fair value of other equity instrument

investments 0.00 0.00

4. Changes in fair value of enterprise's own credit

risk 0.00 0.00

5. Others 0.00 0.00

(II) Items that may be reclassified to profit or loss -667274606.78 57468771.21

1. Other comprehensive income that can be converted

to profit or loss under the equity method -5033010.45 -2669044.27

2. Changes in fair value of other debt investments 0.00 0.00

3. Financial assets reclassified into other

comprehensive income 0.00 0.00

4. Credit impairment allowance for other debt

investments 0.00 0.00

140Item Year ended Year ended 31/12/2025 31/12/2024

5. Cash flow hedge reserves -456672803.95 241791178.43

6. Translation differences arising from translation of

foreign currency financial statements -205568792.38 -181653362.95

7. Others 0.00 0.00

Other comprehensive income (net of tax) attributable

to non-controlling interests -11704661.19 -10929888.69

VII. Total comprehensive income for the year 3866398238.09 4722634480.79

Attributable to shareholders of the parent company 3613039842.03 4561464289.60

Attributable to non-controlling interests 253358396.06 161170191.19

VIII. Earnings per share

1. Basic earnings per share 2.58 2.71

2. Diluted earnings per share 2.57 2.70

For business combination involving enterprises under common control occurred during the current period

the net profit of the acquiree before the combination was RMB0.00 and the net profit of the acquiree for the

prior period was RMB0.00.Legal representative: Xue Hua

Person in charge of accounting function: Yang Shaolin

Person in charge of accounting department: Yang Shaolin

4. Company Income Statement

Expressed in RMB

Item Year ended Year ended 31/12/2025 31/12/2024

I. Operating income 3359820880.26 3215196573.23

Less: Operating costs 1401466278.20 1330493047.25

Taxes and surcharges 5322546.60 7091301.56

Selling and distribution expenses 0.00 0.00

General and administrative expenses 883855076.05 655301986.87

Research and development expenses 281210373.38 242132198.68

Financial expenses 252190.69 -108395935.44

Including: Interest expenses 187826118.39 190417613.87

Interest income 219295752.07 316849159.06

Add: Other income 15231414.42 28029335.70

Investment income ("-" for losses) 747548277.12 486836062.12

Including: Income from investment in associates and

joint ventures -4298.24 -296743.27

Income from derecognition of financial assets

measured at amortized cost ("-" for losses) 0.00 0.00

141Item Year ended Year ended 31/12/2025 31/12/2024

Net exposure hedge income ("-" for losses) 0.00 0.00

Gains from changes in fair value ("-" for losses) 10364939.61 3213801.21

Credit losses ("-" for losses) -861675.34 92100.60

Impairment losses ("-" for losses) -818689694.21 -71195498.37

Gains from assets disposal ("-" for losses) 1810189.60 -200935.33

II. Operating profit ("-" for losses) 743117866.54 1535348840.24

Add: Non-operating income 2967469.25 1007872.75

Less: Non-operating expenses 20378096.65 15990312.51

III. Profit before income tax ("-" for losses) 725707239.14 1520366400.48

Less: Income tax expenses -56075455.79 102269327.87

IV. Net profit for the year ("-" for losses) 781782694.93 1418097072.61

1. Net profit from continuing operations ("-" for net loss) 781782694.93 1418097072.61

2. Net profit from discontinued operations ("-" for net

loss) 0.00 0.00

V. Other comprehensive income net of tax 648028.08 -648028.08

(I) Items that will not be reclassified to profit or loss 0.00 0.00

1. Gains (losses) on remeasurement of defined benefit

plan liabilities or assets 0.00 0.00

2. Other comprehensive income not to be reclassified

to profit or loss under the equity method 0.00 0.00

3. Changes in fair value of other equity instrument

investments 0.00 0.00

4. Changes in fair value of enterprise's own credit risk 0.00 0.00

5. Others 0.00 0.00

(II) Items that may be reclassified to profit or loss 648028.08 -648028.08

1. Other comprehensive income that can be converted

to profit or loss under the equity method 0.00 0.00

2. Changes in fair value of other debt investments 0.00 0.00

3. Financial assets reclassified into other

comprehensive income 0.00 0.00

4. Credit impairment allowance for other debt

investments 0.00 0.00

5. Cash flow hedge reserves 648028.08 -648028.08

6. Translation differences arising from translation of

foreign currency financial statements 0.00 0.00

7. Others 0.00 0.00

VI. Total comprehensive income for the year 782430723.01 1417449044.53

VII. Earnings per share

1. Basic earnings per share

2. Diluted earnings per share

1425. Consolidated Cash Flow Statement

Expressed in RMB

Item Year ended Year ended 31/12/2025 31/12/2024

I. Cash flows from operating activities

Cash received from sales of goods and rendering of

services 129308694882.04 116288967039.94

Customer deposits and due to banks and other

financial institutions net increase 26966535.77 80140331.90

Net increase in due to central bank 0.00 0.00

Net increase in borrowings from other financial

institutions 0.00 0.00

Cash from premiums on original insurance contracts 0.00 0.00

Net increase from reinsurance business 0.00 0.00

Net increase in insured’s deposits and investments 0.00 0.00

Cash received from interest handling fee and

commission 60823653.04 56208399.10

Placements from banks and other financial

institutions net increase 0.00 0.00

Net increase in repurchases 0.00 0.00

Net cash receipts from securities brokering 0.00 0.00

Refund of taxes 56131421.72 24169583.78

Cash received from other operating activities 984780208.74 1357948263.00

Subtotal of cash inflows from operating activities 130437396701.31 117807433617.72

Cash paid for goods and services 112593487329.63 99850308469.21

Net increase in loans and advances to customers 0.00 0.00

Due from central banks and other banks net increase 0.00 0.00

Cash paid for claim settlements on original insurance

contracts 0.00 0.00

Placements with banks and other financial

institutions 0.00 0.00

Cash paid for interest fees and commissions 0.00 0.00

Cash paid for policy dividends 0.00 0.00

Cash paid to and on behalf of employees 7426304692.89 6296452000.72

Taxes payments 1265053959.21 1038486646.44

Cash paid for other operating activities 2892173396.36 2625931126.30

Subtotal of cash outflows for operating activities 124177019378.09 109811178242.67

Net cash flows from operating activities 6260377323.22 7996255375.05

II. Cash flows from investing activities

Cash received from disposal of investments 18846583137.19 17096194296.74

Cash received from investment gains 59030385.90 66958758.23

Cash received from disposal of fixed assets

intangible assets and other long-term assets 97472689.61 155745226.93

143Item Year ended Year ended 31/12/2025 31/12/2024

Net proceeds from disposal of subsidiaries and other

business units 37688250.55 58274059.80

Cash received from other investing activities 72137638.88 22888411.53

Subtotal of cash inflows from investing activities 19112912102.13 17400060753.23

Payment for acquisition of fixed assets intangible

assets and other long-term assets 3336532557.69 3136747295.93

Payment for acquisition of investments 16510170488.75 20600132997.25

Net increase in pledged loans 0.00 0.00

Net payments for acquisition of subsidiaries and

other business units 507360140.08 6081935.84

Cash paid for other investing activities 100460328.30 62604501.99

Subtotal of cash outflows for investing activities 20454523514.82 23805566731.01

Net cash flows from investing activities -1341611412.69 -6405505977.78

III. Cash flows from financing activities

Cash received from investors 72750000.00 76800000.00

Including: Proceeds from non-controlling

shareholders of subsidiaries 72750000.00 76800000.00

Cash received from borrowings 5053801279.66 7248186028.12

Cash received from other financing activities 146766897.87 425519628.41

Subtotal of cash inflows from financing activities 5273318177.53 7750505656.53

Repayments of borrowings 6582127115.88 9496523043.54

Payment for dividends profit distributions or

interests 2624222051.83 1282219907.31

Including: Dividends and profits paid to non-

controlling shareholders of subsidiaries 303258462.14 145187839.06

Cash paid for other financing activities 1242868791.70 582230094.03

Subtotal of cash outflows for financing activities 10449217959.41 11360973044.88

Net cash flows from financing activities -5175899781.88 -3610467388.35

IV. Effect of foreign exchange rate changes on cash and

cash equivalents -71235140.56 -20585936.88

V. Net increase in cash and cash equivalents -328369011.91 -2040303927.96

Add: Cash and cash equivalents at the beginning of

the period 3326944745.48 5367248673.44

VI. Cash and cash equivalents at the end of the period 2998575733.57 3326944745.48

6. Company Cash Flow Statement

Expressed in RMB

Item Year ended Year ended 31/12/2025 31/12/2024

I. Cash flows from operating activities

Cash received from sales of goods and rendering

of services 3490468959.88 3168959435.61

Refund of taxes 0.00 0.00

144Item Year ended Year ended 31/12/2025 31/12/2024

Cash received from other operating activities 163877668201.89 145106586154.11

Subtotal of cash inflows from operating activities 167368137161.77 148275545589.72

Cash paid for goods and services 817956841.17 699336789.90

Cash paid to and on behalf of employees 640604687.41 485613285.17

Taxes payments 120706393.49 177726432.32

Cash paid for other operating activities 162218543495.60 142689310866.17

Subtotal of cash outflows for operating activities 163797811417.67 144051987373.56

Net cash flows from operating activities 3570325744.10 4223558216.16

II. Cash flows from investing activities

Cash received from disposal of investments 13236393644.87 9105228376.96

Cash received from investment gains 845538773.88 374814564.69

Cash received from disposal of fixed assets

intangible assets and other long-term assets 2670113.94 172858.95

Net proceeds from disposal of subsidiaries and

other business units 0.00 0.00

Cash received from other investing activities 0.00 0.00

Subtotal of cash inflows from investing activities 14084602532.69 9480215800.60

Payment for acquisition of fixed assets intangible

assets and other long-term assets 232420393.16 281010518.68

Payment for acquisition of investments 14002820431.25 12874434552.42

Net payments for acquisition of subsidiaries and

other business units 0.00 0.00

Cash paid for other investing activities 0.00 0.00

Subtotal of cash outflows for investing activities 14235240824.41 13155445071.10

Net cash flows from investing activities -150638291.72 -3675229270.50

III. Cash flows from financing activities

Cash received from investors 0.00 0.00

Cash received from borrowings 1869063341.35 4865080020.52

Cash received from other financing activities 131818543.43 371883277.75

Subtotal of cash inflows from financing activities 2000881884.78 5236963298.27

Repayments of borrowings 2878622337.80 6557666982.34

Payment for dividends profit distributions or

interests 2295943936.77 1020923975.71

Cash paid for other financing activities 795714011.62 93763304.93

Subtotal of cash outflows for financing activities 5970280286.19 7672354262.98

Net cash flows from financing activities -3969398401.41 -2435390964.71

IV. Effect of foreign exchange rate changes on cash

and cash equivalents -2032880.18 4414231.41

V. Net increase in cash and cash equivalents -551743829.21 -1882647787.64

Add: Cash and cash equivalents at the beginning of

the period 1349771214.43 3232419002.07

VI. Cash and cash equivalents at the end of the period 798027385.22 1349771214.43

1457. Consolidated Statement of Changes in Shareholders' Equity

Expressed in RMB

Year ended 31/12/2025

Attributable to shareholders' equity of the parent company

Item

Other equity instruments Non-controlling

Total

Other interests shareholders' Share Capital reserve Less: Treasury comprehensive Specific capital stock Surplus reserve

General risk Retained earnings Others Subtotal equity

Preference Perpetual Others income

reserve provision

share debts

I. Balance at the

end of prior year 1663749970.00 0.00 0.00 0.00 5151357352.87 300081705.48 356509145.52 835404.85 831874985.00 2389821.53 16198667745.26 0.00 23905302719.55 1191130950.38 25096433669.93

Add: Changes in

accounting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

policies

Correction of prior

period errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

II. Balance at the

beginning of the 1663749970.00 0.00 0.00 0.00 5151357352.87 300081705.48 356509145.52 835404.85 831874985.00 2389821.53 16198667745.26 0.00 23905302719.55 1191130950.38 25096433669.93

year

III. Changes in

equity during theyear (“- " for 0.00 0.00 0.00 0.00 -537300172.15 570051962.02 -667290892.05 641950.61 0.00 121864.27 2117417368.81 0.00 343538157.47 59826903.39 403365060.86decrease)

(I) Total

comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 -667290892.05 0.00 0.00 0.00 4280330734.08 0.00 3613039842.03 253358396.06 3866398238.09

income

(II) Shareholders'

contributions and 0.00 0.00 0.00 0.00 -556226234.93 570051962.02 0.00 0.00 0.00 0.00 0.00 0.00 -1126278196.95 18800669.44 -1107477527.51

decrease of capital

1. Contribution by

ordinary 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 73693367.89 73693367.89

shareholders

2. Contribution by

holders of other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

equity instruments

3. Share based

payment included

in shareholders' 0.00 0.00 0.00 0.00 9132073.53 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9132073.53 3048240.94 12180314.47

equity

4．Others 0.00 0.00 0.00 0.00 -565358308.46 570051962.02 0.00 0.00 0.00 0.00 0.00 0.00 -1135410270.48 -57940939.39 -1193351209.87

(III) Appropriation

of profits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 121864.27 -2162913365.27 0.00 -2162791501.00 -212332162.11 -2375123663.11

1. Appropriation

for surplus reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

146Year ended 31/12/2025

Attributable to shareholders' equity of the parent company

Item

Other equity instruments Non-controlling

Total

Other interests shareholders' Share Capital reserve Less: Treasury comprehensive Specific capital stock reserve Surplus reserve

General risk

provision Retained earnings Others Subtotal

equity

Preference Perpetual income

share debts Others

2．Appropriation

for general risk 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 121864.27 -121864.27 0.00 0.00 0.00 0.00

provision

3．Distributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -2162791501.00 0.00 -2162791501.00 -212332162.11 -2375123663.11

to shareholders

4．Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(IV) Transfer

Within equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1. Transfer of

capital reserve to 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

share capital

2. Transfer of

surplus reserve to 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

share capital

3. Surplus reserve

for making up 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

losses

4. Transfer the

changes in defined

benefit plan into 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

retained earnings

5. Transfer of

other

comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

income to retained

earning

6. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(V) Specific

reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 641950.61 0.00 0.00 0.00 0.00 641950.61 0.00 641950.61

1. Appropriation

during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 696942.62 0.00 0.00 0.00 0.00 696942.62 0.00 696942.62

2. Utilization

during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -54992.01 0.00 0.00 0.00 0.00 -54992.01 0.00 -54992.01

(VI) Others 0.00 0.00 0.00 0.00 18926062.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18926062.78 0.00 18926062.78

IV. Balance at the

end of the year 1663749970.00 0.00 0.00 0.00 4614057180.72 870133667.50 -310781746.53 1477355.46 831874985.00 2511685.80 18316085114.07 0.00 24248840877.02 1250957853.77 25499798730.79

147Expressed in RMB

Year ended 31/12/2024

Attributable to shareholders' equity of the parent company

Item

Other equity Non-controlling Total

instruments Other interests shareholders'

Share capital Capital reserve Less: Treasury comprehensive Specific Surplus reserve General risk stock reserve provision Retained earnings Others Subtotal

equity

Preference Perpetual income

share debt Others

I. Balance at the

end of prior year 1663749970.00 0.00 0.00 0.00 5415541083.59 1092402857.64 299040374.31 398575.53 831874985.00 2599780.20 12526305153.20 0.00 19647107064.19 1264209861.20 20911316925.39

Add: Changes in

accounting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

policies

Correction of

prior period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

errors

Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

II. Balance at the

beginning of the 1663749970.00 0.00 0.00 0.00 5415541083.59 1092402857.64 299040374.31 398575.53 831874985.00 2599780.20 12526305153.20 0.00 19647107064.19 1264209861.20 20911316925.39

year

III. Changes in

equity during the

year ("- " for 0.00 0.00 0.00 0.00 -264183730.72 -792321152.16 57468771.21 436829.32 0.00 -209958.67 3672362592.06 0.00 4258195655.36 -73078910.82 4185116744.54

decrease)

(I) Total

comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 57468771.21 0.00 0.00 0.00 4503995518.39 0.00 4561464289.60 161170191.19 4722634480.79

income

(II) Shareholders'

contributions and

decrease of 0.00 0.00 0.00 0.00 -265308610.89 -792321152.16 0.00 0.00 0.00 0.00 0.00 0.00 527012541.27 39637723.08 566650264.35

capital

1. Contribution

by ordinary 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 107600000.00 107600000.00

shareholders

2. Contribution

by holders of

other equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

instruments

3. Share based

payment included

in shareholders' 0.00 0.00 0.00 0.00 -271624071.72 -792321152.16 0.00 0.00 0.00 0.00 0.00 0.00 520697080.44 3983930.38 524681010.82

equity

4．Others 0.00 0.00 0.00 0.00 6315460.83 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6315460.83 -71946207.30 -65630746.47

(III)

Appropriation of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -209958.67 -831632926.33 0.00 -831842885.00 -273886825.09 -1105729710.09

profits

1. Appropriation

for surplus 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

reserve

2．Appropriation

for general risk 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -209958.67 209958.67 0.00 0.00 0.00 0.00

provision

148Year ended 31/12/2024

Attributable to shareholders' equity of the parent company

Item

Other equity Non-controlling Total

instruments Other interests shareholders'

Share capital Capital reserve Less: Treasury stock comprehensive

Specific General risk equity

Preference Perpetual income reserve

Surplus reserve provision Retained earnings Others Subtotal

share debt Others

3．Distributions

to shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -831842885.00 0.00 -831842885.00 -273886825.09 -1105729710.09

4．Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(IV) Transfer

within equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1. Transfer of

capital reserve to 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

share capital

2. Transfer of

surplus reserve to 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

share capital

3. Surplus

reserve for 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

making up losses

4. Transfer the

changes in

defined benefit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

plan into retained

earnings

5. Transfer of

other

comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

income to

retained earning

6. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(V) Specific

reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 436829.32 0.00 0.00 0.00 0.00 436829.32 0.00 436829.32

1. Appropriation

during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 555173.73 0.00 0.00 0.00 0.00 555173.73 0.00 555173.73

2. Utilization

during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00

-

118344.410.000.000.000.00-118344.410.00-118344.41

(VI) Others 0.00 0.00 0.00 0.00 1124880.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1124880.17 0.00 1124880.17

IV. Balance at the

end of the year 1663749970.00 0.00 0.00 0.00 5151357352.87 300081705.48 356509145.52 835404.85 831874985.00 2389821.53 16198667745.26 0.00 23905302719.55 1191130950.38 25096433669.93

1498. Company Statement of Changes in Shareholders' Equity

Expressed in RMB

Year ended 31/12/2025

Item Other equity instruments Other

Share capital Capital reserve Less: Treasury stock comprehensive

Specific

reserve Surplus reserve Retained earnings Others

Total shareholders'

Preference Perpetual equity

share debts Others

income

I. Balance at the end of prior year 1663749970.00 0.00 0.00 0.00 5549414081.28 300081705.48 -648028.08 0.00 831874985.00 5344850272.42 0.00 13089159575.14

Add: Changes in accounting policies 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Correction of prior period errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

II. Balance at the beginning of the year 1663749970.00 0.00 0.00 0.00 5549414081.28 300081705.48 -648028.08 0.00 831874985.00 5344850272.42 0.00 13089159575.14

III. Changes in equity during the year ( "- " for

decrease) 0.00 0.00 0.00 0.00 94317347.64 570051962.02 648028.08 0.00 0.00 -1381008806.07 0.00 -1856095392.37

(I) Total comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 648028.08 0.00 0.00 781782694.93 0.00 782430723.01

(II) Shareholders' contributions and decrease of

capital 0.00 0.00 0.00 0.00 55027164.07 570051962.02 0.00 0.00 0.00 0.00 0.00 -515024797.95

1. Contribution by ordinary shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2. Contribution by holders of other equity

instruments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3. Share based payment included in shareholders'

equity 0.00 0.00 0.00 0.00 62422310.39 0.00 0.00 0.00 0.00 0.00 0.00 62422310.39

4．Others 0.00 0.00 0.00 0.00 -7395146.32 570051962.02 0.00 0.00 0.00 0.00 0.00 -577447108.34

(III) Appropriation of profits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -2162791501.00 0.00 -2162791501.00

1. Appropriation for surplus reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2. Distributions to shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -2162791501.00 0.00 -2162791501.00

3. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(IV) Transfer within equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1. Transfer of capital reserve to share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2. Transfer of surplus reserve to share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3. Surplus reserve for making up losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

150Year ended 31/12/2025

Item Other equity instruments

Share capital Capital reserve Less: Treasury

Other

stock comprehensive

Specific

reserve Surplus reserve Retained earnings Others

Total shareholders'

Preference Perpetual equity

share debts Others

income

4. Transfer the changes in defined benefit plan

into retained earnings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

5. Transfer of other comprehensive income to

retained earning 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(V) Specific reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1. Appropriation during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2. Utilization during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(VI) Others 0.00 0.00 0.00 0.00 39290183.57 0.00 0.00 0.00 0.00 0.00 0.00 39290183.57

IV. Balance at the end of the year 1663749970.00 0.00 0.00 0.00 5643731428.92 870133667.50 0.00 0.00 831874985.00 3963841466.35 0.00 11233064182.77

Expressed in RMB

Year ended 31/12/2024

Item Other equity instruments

Share capital Capital reserve Less: Treasury Other comprehensive Specific Surplus reserve Retained Others Total shareholders'

Preference Perpetual stock income reserve earnings equity

share debts Others

I. Balance at the end of prior year 1663749970.00 0.00 0.00 0.00 5799984845.21 1092402857.64 0.00 0.00 831874985.00 4758596084.81 0.00 11961803027.38

Add: Changes in accounting policies 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Correction of prior period errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

II. Balance at the beginning of the year 1663749970.00 0.00 0.00 0.00 5799984845.21 1092402857.64 0.00 0.00 831874985.00 4758596084.81 0.00 11961803027.38

III. Changes in equity during the year ( "- " for

decrease) 0.00 0.00 0.00 0.00 -250570763.93 -792321152.16 -648028.08 0.00 0.00 586254187.61 0.00 1127356547.76

(I) Total comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 -648028.08 0.00 0.00 1418097072.61 0.00 1417449044.53

(II) Shareholders' contributions and decrease of

capital 0.00 0.00 0.00 0.00 -267733611.58 -792321152.16 0.00 0.00 0.00 0.00 0.00 524587540.58

1. Contribution by ordinary shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

151Year ended 31/12/2024

Item Other equity instruments

Share capital Capital reserve Less: Treasury Other comprehensive Specific Surplus reserve Retained Others Total shareholders'

Preference Perpetual stock income reserve earnings equity

share debts Others

2. Contribution by holders of other equity

instruments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3. Share based payment included in

shareholders' equity 0.00 0.00 0.00 0.00 -267733611.58 -792321152.16 0.00 0.00 0.00 0.00 0.00 524587540.58

4．Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(III) Appropriation of profits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -831842885.00 0.00 -831842885.00

1. Appropriation for surplus reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2. Distributions to shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -831842885.00 0.00 -831842885.00

3. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(IV) Transfer within equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1. Transfer of capital reserve to share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2. Transfer of surplus reserve to share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3. Surplus reserve for making up losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4. Transfer the changes in defined benefit plan

into retained earnings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

5. Transfer of other comprehensive income to

retained earning 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(V) Specific reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1. Appropriation during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2. Utilization during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(VI) Others 0.00 0.00 0.00 0.00 17162847.65 0.00 0.00 0.00 0.00 0.00 0.00 17162847.65

IV. Balance at the end of the year 1663749970.00 0.00 0.00 0.00 5549414081.28 300081705.48 -648028.08 0.00 831874985.00 5344850272.42 0.00 13089159575.14

152I. Company Profile

Guangdong Haid Group Co. Ltd. (formerly known as "Guangdong Haid Industrial Co. Ltd." or "Guangdong

Haid Group Limited" and hereinafter the "Company") is a share limited company registered in Guangdong

Province listed on the Shenzhen Stock Exchange in November 2009 with business license registration

No.914400007578948436.The Company's headquarters is located at Building 1 Haid Science Park No. 8

Longtai Street Hualong Town Panyu District Guangzhou Guangdong Province.The Company and its subsidiaries (hereinafter the "Group") operate in the feed industry and the main

products include aquatic and livestock feed high-quality aquatic animal seedlings animal health products

biological products pig breeding aquatic products and so on covering all business chain such as research

and development design production sales and service of various products.The financial statements and notes have been approved by the sixth meeting of the seventh Board of Directors

of the Company on April 24 2026.II. Basis of Preparation

The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises

and corresponding application guidance interpretations and other related provisions issued by the Ministry

of Finance (collectively "Accounting Standards for Business Enterprises"). In addition the Group also

disclosed the relevant financial information in accordance with the Explanatory Announcement No. 15 on

Information Disclosure for Companies Offering Their Securities to the Public—General Requirements for

Financial Reporting (2023 version) issued by the China Securities Regulatory Commission.The financial statements have been prepared on a going concern basis.The Group's accounting is based on the accrual basis of accounting. The financial statements are prepared

under the historical cost except for certain financial instruments. Non-current assets held-for-sale are

measured at the lower of the amount of the fair value less estimated costs and the book value when it is

recognized as held-for-sale. If the assets were impaired a provision for impairment shall be provided in

accordance with the relevant regulations.III. Significant Accounting Policies and Accounting Estimates

The Group has established its policies for fixed assets appreciation and revenue recognition based on the

specific characteristics of its production and operations in accordance with the relevant requirements of the

Accounting Standards for Business Enterprises. For detailed information on these accounting policies please

refer to Note III. 17 and Note III. 29.

1. Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements have been prepared in accordance with the requirements of Accounting Standards

for Business Enterprises. These financial statements have truly and completely presented the consolidated

financial position and financial position of the Group as of December 31 2025 and their operating results

and cash flows for the year ended December 31 2025.

2. Accounting Period

The Group's accounting period is based on the calendar year which begins on January 1 and ends on

December 31 of each year.

3. Operating Cycle

The operating cycle of the Group is 12 months.

4. Functional currency

The Group and its domestic subsidiaries use RMB as their functional currency. The overseas subsidiaries of

153the Group determine their functional currency according to the primary economic environment where they

operate. The financial statements of the Group have been prepared in RMB.The subsidiaries joint ventures and associates of the Group determine their functional currency according to

the primary economic environment where they operate and the financial statements have been prepared in

RMB.

5. Significant criteria and basis for selection

Items Significant criteria

Significant accounts receivable

assessed for Individual provision value over 5% of total bad debt provision for the

bad and doubtful debts corresponding category

allowance individually

Significant provision for bad Individual recoveries or reversals over 5% of the total original value of the

and doubtful debts recovered or corresponding accounts receivable

reversed in current period category

Significant accounts receivable Individual write-offs over 5% of total original value of the corresponding

write-off during current period accounts receivable category

Significant prepayments

accounts payable

advances from customers Individual transaction account aged over 1 year represent more than 5% of

contract liabilities the total original value of the corresponding category

dividends receivable other

payables aged over 1 year

Significant construction in Individual project value over 5% of the Company's total construction in

progress progress

Significant non-wholly-owned Non-wholly owned subsidiaries whose net assets account for more than 4%

subsidiaries of the Group's total net assets

The book value of long-term equity investment in a single investee represents

Significant joint ventures and more than 5% of the Group's total net assets or the investment gains or losses

associates under the equity method of long-term equity investments accounts for more

than 5% of the Group's consolidated net profit

Significant capitalized research The value to be capitalized for the individual R&D project accounts for more

and development projects than 5% of the Group's total intangible assets

Significant investment activities A single investment activity accounts for more than 10% of the total cash inflows or outflows related to investment activities

6. Accounting treatments for business combinations involving enterprises under common control and business

combinations involving enterprises not under common control

(1) Business combinations involving enterprises under common control

For a business combination involving enterprises under common control the assets acquired and liabilities

assumed are measured based on their carrying amounts in the consolidated financial statements of the

ultimate controlling party at the combination date. The difference between the carrying amount of the net

assets acquired and the consideration paid for the combination is adjusted against capital reserve (share

premium/capital premium) with any excess adjusted against retained earnings.For a business combination involving entities under common control achieved in stages that involves

multiple exchange transactions

In the consolidated financial statements the assets acquired and liabilities assumed are measured based on

their carrying amounts in the consolidated financial statements of the ultimate controlling party at the

combination date; the difference between the aggregate carrying amount of the investment before

combination and the new consideration paid on the combination date and the carrying amount of the net

asset acquired in the combination is adjusted against capital reserve with any excess adjusted against

retained earnings. The long-term equity investment of the combining party before acquiring the control the

profit or loss other comprehensive income and other changes in the owner's equity recognized from the later

154of the initial acquisition date of the equity and the date when the combining party and the combined party

under common ultimate control party to the combination date shall be offset against the opening retained

earnings and profit or loss for the current period in the comparative statement.

(2) Business combinations involving enterprises not under common control

For business combinations involving enterprises not under common control the consideration costs are the

fair values of the assets paid the liabilities incurred or assumed and the equity instruments issued by the

acquirer in exchange for control over the acquiree on the acquisition date. At the acquisition date the acquired

assets liabilities and contingent liabilities of the acquiree are measured at their fair value.Where the combination cost exceeds the acquirer's interest in the fair value of the acquiree's identifiable net

assets the difference is recognized as goodwill and subsequently measured based on its cost less

accumulated impairment provisions. Where the combination cost is less than the acquirer's interest in the fair

value of the acquiree's identifiable net assets the difference is recognized in profit or loss for the current

period after reassessment.The contingent consideration involved is included in the combination cost at fair value at the date of purchase

and if new or further evidence of circumstances existing at the purchase date emerges within 12 months the

contingent consideration and goodwill are adjusted accordingly.For a business combination involving enterprises not under common control and achieved in stages that

involves multiple exchange transactions

In the consolidated financial statements the cost of business combination is the total of the consideration

paid at the acquisition date and the fair value of equity investment of the acquiree held prior to the acquisition

date. The cost of equity investment of the acquiree held prior to the acquisition date shall be re-measured at

the fair value at the acquisition date the difference between the fair value and par value shall be recognized

as profit or loss for the current period. Other comprehensive income and changes of other owners' equity

from the equity interest held in the acquiree prior to the acquisition date shall be transferred to profit or loss

for the current period except for other comprehensive income arising from the remeasurement of the net

liabilities or assets of defined benefit plans by the investees as well as other comprehensive income related

to the investments in the non-trading equity instruments that were originally designated to be measured at

fair value through other comprehensive income.

(3) Transaction costs for business combination

The overhead for the business combination including the expenses for audit legal services valuation

advisory and other administrative expenses are recorded in profit or loss for the current period when incurred.The transaction costs of equity or debt securities issued as the considerations of business combination are

included in the initial recognition amount of the equity or debt securities.

7. The criteria of control and the method of preparation of the consolidated financial statements

(1) The criteria of control

The scope of consolidated financial statements is based on control. Control exists when the Group has power

over the investee; exposure or rights to variable returns from its involvement with the investee and has the

ability to use its power to affect those returns. The Group will reassess whether control exists if changes in

relevant facts and circumstances cause variations in the elements that determine control.In determining whether to include a structured entity in the scope of consolidation the Group assesses

whether to control the structured entity on the basis of a combination of all the facts and circumstances

including an assessment of the purpose and design for which the structured entity was established the

identification of the types of variable returns and whether it assumes some or all of the variability of the

returns through its participation in its related activities.

(2) Method of preparation of consolidated financial statements

155The consolidated financial statements are prepared by the Group based on the financial statements of the

Group and its subsidiaries and other relevant information. When preparing consolidated financial statements

the accounting policies and accounting periods of the subsidiaries should be consistent with the Group and

all significant intra-company balances and transactions should be eliminated.Where a subsidiary or business was acquired during the reporting period through a business combination

involving enterprises under common control the financial statements of the subsidiary or business are

included in the consolidated financial statements as if the combination had occurred at the date that the

ultimate controlling party first obtained control.Where a subsidiary or business was acquired during the reporting period through a business combination

involving enterprises not under common control the identifiable assets and liabilities of the acquired

subsidiaries or business are included in the scope of consolidation from the date that control commences.The portion of a subsidiary's equity that is not attributable to the parent is treated as non-controlling interests

and presented separately in the consolidated balance sheet within shareholders' equity. The portion of net

profit or loss of subsidiaries for the period attributable to non-controlling interests is presented separately in

the consolidated income statement below the net profit line item. When the amount of loss for the current

period attributable to the non-controlling shareholders of a subsidiary exceeds the non-controlling

shareholders' share of the opening owners' equity of the subsidiary any excess is still allocated against the

non-controlling interests.

(3) Purchase of subsidiaries' non-controlling interests

The difference between the cost of long-term equity investment newly acquired due to the purchase of non-

controlling interest and the share of net assets of the subsidiary continuously calculated from the purchase

date or merger date according to the newly increased shareholding ratio and the difference between the

disposal price obtained as a result of partial disposal of the equity investment in the subsidiary without loss

of control and the share of net assets continuously calculated since the purchase date or the merger date

corresponding to the disposal of the long-term equity investment of the subsidiary should be adjusted to the

capital reserve in the consolidated balance sheet with any excess adjusted to retained earnings.

(4) Disposal of subsidiaries

When the Group loses control over a subsidiary because of disposing part of equity investment or other

reasons the remaining part of the equity investment is re-measured at fair value at the date when the control

is lost. The difference between the aggregate of consideration received in disposal and the fair value of

remaining part of the equity investment and the aggregate share of net assets in proportion to previous

shareholding percentage in the former subsidiary since acquisition date and the goodwill is recognized as an

investment gain or loss in the current period.Other comprehensive income related to the equity investment of the former subsidiary shall be accounted for

on the same basis as the direct disposal of the relevant assets or liabilities of the former subsidiary at the time

of loss of control and other changes in owner's equity related to the former subsidiary under the equity

method of accounting shall be transferred to profit or loss in the current period at the time of loss of control.

(5) The treatment of disposing equity investment by stages until the control is lost

The Group considers the arrangements of multiple transactions by disposing equity investment by stages

until the control is lost as a single transaction when the terms conditions and economic impact of each

transaction meet one or more of the following situations:

* The transactions are entered into at the same time or in contemplation of each other;

* The transactions are considered as a single transaction to achieve an overall commercial effect;

* The occurrence of one transaction dependent on the occurrence of at least one other transaction;

156* A transaction is not economically justifiable when considered on its own but it becomes economically

justifiable when considered as part of a series of related transactions.In the consolidated financial statements please refer to the above disposal of subsidiaries for the

measurement of remaining equity and accounting treatment for profit or loss of disposing equity investment

by stages until the control is lost. The difference between each consideration received and the share of the

subsidiary's net assets since acquisition date relevant to disposing investment until the control is lost:

* is recognized in other comprehensive income if the arrangements are regarded as a single transaction.Other comprehensive income is transferred to profit or loss for the current period when the control is lost.* is recognized in capital reserve (share premium/capital premium) as an equity transaction if the

arrangements are not regarded as a single transaction. Capital reserve is not transferred to profit or loss for

the current period when the control is lost.

8. Joint arrangement classification and accounting treatment for joint operation

A joint arrangement is an arrangement of which two or more parties have joint control. The Group classifies

joint arrangements into joint operations and joint ventures.

(1) Joint operations

A joint operation is a joint arrangement whereby the joint operators have rights to the assets and obligations

for the liabilities relating to the arrangement.The Group recognizes the following items relating to its interest in a joint operation and account for them in

accordance with relevant accounting standards:

A. Its solely-held assets and its share of any assets held jointly;

B. Its solely-assumed liabilities and its share of any liabilities assumed jointly;

C. Its revenue from the sale of its share of the output arising from the joint operation;

D. Its share of the revenue from the sale of the output by the joint operation; and

E. Its solely-incurred expenses and its share of any expenses incurred jointly.

(2) Joint ventures

A joint venture is a joint arrangement whereby the joint venturers have rights to the net assets of the

arrangement.The Group adopts equity method under long-term equity investment in accounting for its investment in joint

venture.

9. Cash and cash equivalents

Cash comprises cash in hand and deposits that can be readily withdrawn on demand. Cash equivalents include

short-term highly liquid investments that are readily convertible to known amounts of cash and are subject

to an insignificant risk of change in value.

10. Foreign currency transactions and translation of foreign currency financial statements

(1) Foreign currency transactions

The Group's foreign currency operations are translated into the local currency amounts at the spot rate of

exchange in effect on the date of the transaction or at a rate determined in accordance with a systematic and

rationalized method that approximates the spot rate of exchange in effect on the date of the transaction.

157At the balance sheet date monetary items denominated in foreign currencies are translated using the spot

exchange rate at the balance sheet date. Exchange differences arising from the difference between the spot

exchange rate at the balance sheet date and the spot exchange rate at the time of initial recognition or at the

previous balance sheet date are recognized in profit or loss for the current period; for foreign-currency non-

monetary items measured at historical cost they are still translated using the spot exchange rate at the date

of the transaction; for foreign-currency non-monetary items measured at fair value they are translated using

the spot exchange rate at the date of determination of the fair value and the difference between the amount

of the bookkeeping currency after translation and the amount of the original bookkeeping currency is

recognized in profit or loss for the current period. The difference between the translated amount in the

functional currency and the original amount in the functional currency is recognized in profit or loss or other

comprehensive income depending on the nature of the non-monetary item.

(2) Translation of foreign currency financial statements

On the balance sheet date when translating the foreign currency financial statements of foreign subsidiaries

the assets and liabilities items in the balance sheet are translated using the spot exchange rate on the balance

sheet date and the shareholders' equity items except for retained earnings are translated using the spot

exchange rate on the date of occurrence.Income and expense items in the income statement are translated at rates of exchange determined by a

systematic and rationalized method that approximate spot rates at the date of the transaction.All items in the statement of cash flows are translated at rates of exchange determined on a systematic and

rationalized basis that approximate the spot rates at the date of the cash flows. The effect of exchange rate

changes on cash is reflected as a reconciling item in the statement of cash flows under the separate line item

as effect of exchange rate changes on cash and cash equivalents.The resulting translation differences are recognized as other comprehensive income in the shareholders'

equity of the balance sheet.When disposing of a foreign operation and losing control the foreign currency translation differences related

to that foreign operation which are presented under the shareholders’ equity (or owners’ equity) section of

the balance are entirely or proportionally transferred to the income statement for the period of disposal based

on the proportion of the foreign operation disposed of.

11. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial

liability or an equity instrument of another enterprise.

(1) Recognition and derecognition of financial instruments

A financial asset or a financial liability is recognized when the Group becomes a party to the contractual

provisions of a financial instrument.If one of the following criteria is met a financial asset is derecognized:

* The contractual rights to the cash flows from the financial asset expire; or

* The financial asset was transferred and the transfer qualifies for derecognition in accordance with criteria

set out below in the section of transfer of financial assets.A financial liability (or partially) is derecognized when its contractual obligation (or partially) is discharged

or cancelled or expires. If the Group (as a debtor) makes an agreement with the creditor to replace the current

financial liability with assuming a new financial liability and contractual provisions are different in substance

the current financial liability is derecognized and a new financial liability is recognized.If the financial assets are traded regularly the financial assets are recognized and derecognized at the

transaction date.

158(2) Classification and measurement of financial assets

The Group classifies financial assets as measured at amortized cost fair value through other comprehensive

income or fair value through profit or loss at initial recognition on the basis of both the entity's business

model for managing the financial assets and the contractual cash flow characteristics of the financial asset.Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value

through profit or loss the related transaction costs are directly recorded in current profit or loss; for other

types of financial assets related transaction costs are included in the initial recognition amount. For

receivables arising from the sale of products or the provision of services that do not contain or take into

account significant financing components the amount of consideration that the Group is expected to be

entitled to collect shall be the initial recognition amount.Financial assets measured at amortized cost

The Group classifies the financial assets that meet the following conditions and are not designated as

measured at fair value through profit or loss as financial assets measured at amortized cost:

* The Group's business model of managing the financial assets aims at collecting contractual cash flows;

* The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.After the initial recognition the effective interest rate method is adopted to measure the amortized cost of

such financial assets. Gains or losses arising from financial assets that are measured at amortized cost and

are not part of any hedging relationship shall be recorded in the current profit or loss when the financial assets

are derecognized amortized according to the effective interest method or impaired.Financial assets measured at fair value through other comprehensive income

The Group classifies the financial assets that simultaneously meet the following conditions and are not

specified as measured at fair value through profit or loss as financial assets measured at fair value through

other comprehensive income:

* The Group's business model of managing the financial asset aims at both collecting contractual cash

flows and selling the financial assets.* The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.After the initial recognition this type of financial assets is subsequently measured at fair value. The interest

loss allowance or gain and exchange loss or gain calculated using the effective interest rate method are

included in the current profit or loss while other gains or losses are included in other comprehensive income.When derecognized the accumulated gains or losses previously recorded in other comprehensive income

shall be transferred out from other comprehensive income and recorded in the current profit or loss.Financial assets measured at fair value through profit or loss

In addition to the above financial assets measured at amortized cost and measured at fair value through other

comprehensive income the Group classifies all other financial assets as financial assets measured at fair

value through profit or loss. At the time of initial recognition in order to eliminate or significantly reduce

accounting mismatches the Group irrevocably designates some financial assets that should have been

measured at amortized cost or measured at fair value through other comprehensive income as financial assets

measured at fair value through profit or loss.After the initial recognition this kind of financial asset is subsequently measured at fair value and the gains

or losses (including interest and dividend income) generated are recorded into the current profit or loss unless

the financial asset is part of the hedging relationship.

159The business model of managing financial assets refers to how the Group manages financial assets to generate

cash flows. The business model determines whether the cash flow from the financial assets under

management of the Group is derived from the receipt of contractual cash flows the sale of financial assets

or a combination of both. The Group determines its business model for managing financial assets on the basis

of objective facts and the specific business objectives for the management of financial assets determined by

key management personnel.The Group assesses the contractual cash flow characteristics of financial assets to determine whether the

contractual cash flows generated by the relevant financial assets on specified dates are solely payments of

principal and interest on the principal amount outstanding. Principal refers to the fair value of financial assets

at initial recognition. Interest includes consideration for the time value of money the credit risk associated

with the amount of principal outstanding over a given period and other basic lending risks and costs as well

as a profit margin. In addition the Group assesses contractual terms that may cause a change in the time

distribution or amount of the contractual cash flows of financial assets to determine whether they meet the

requirements of the above contractual cash flow characteristics.Only when the Group changes the business model of managing financial assets all affected related financial

assets shall be reclassified on the first day of the first reporting period after the change of the business model

otherwise the financial assets shall not be reclassified after the initial recognition.

(3) Classification and measurement of financial liabilities

At the time of initial recognition the financial liabilities of the Group are classified as: financial liabilities

measured at fair value through profit or loss and financial liabilities measured at amortized cost. For financial

liabilities that are not classified as measured at fair value through profit or loss relevant transaction costs are

included in their initial recognized amounts.Financial liabilities measured at fair value through profit or loss

Financial liabilities measured at fair value through profit or loss include financial liabilities held for trading

and financial liabilities designated at the time of initial recognition as measured at fair value through profit

or loss. For such financial liabilities the subsequent measurement shall be made according to the fair value

and the gains or losses caused by changes in the fair value as well as the dividends and interest expenses

related to such financial liabilities shall be recorded into current profit or loss.Financial liabilities measured at amortized cost

For other financial liabilities the effective interest rate method shall be adopted the subsequent measurement

shall be made at the amortized cost and the gains or losses arising from derecognition or amortization shall

be recorded into current profit or loss.Financial guarantee contract

Financial guarantee contracts do not belong to financial liabilities measured at fair value through profit or

loss. They are measured at fair value at initial recognition and are subsequently measured at the higher of the

amount of the loss allowance determined in accordance with the expected credit loss model and the amount

initially recognized less the cumulative amortization.The distinction between financial liabilities and equity instruments

Financial liabilities refer to liabilities that meet one of the following conditions:

* A contractual obligation to deliver cash or other financial assets to other parties.* A contractual obligation to exchange financial assets or financial liabilities with another party under

potentially adverse conditions.* A non-derivative contract that has to be settled with or can be settled with the firm's own equity instruments

in the future under which the firm will deliver a variable number of its own equity instruments.

160* A derivative contract that has to be settled with or can be settled with the firm's own equity instruments in

the future except for a derivative contract in which a fixed number of its own equity instruments are to be

exchanged for a fixed amount of cash or other financial assets.An equity instrument is a contract that certifies ownership of the remaining interest in an enterprise's assets

after all liabilities have been deducted.If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other

financial assets such contractual obligation meets the definition of a financial liability.If a financial instrument has to be settled with or can be settled with the Group's own equity instruments in

the future consideration needs to be given to whether the Group's own equity instruments used to settle the

instrument is to be used as a substitute for cash or other financial assets or to give the holder of the instrument

the remaining interest in the issuer's assets after deduction of all liabilities. If it is the former the instrument

is a financial liability of the Group; if it is the latter the instrument is an equity instrument of the Group.

(4) Derivative financial instruments and embedded derivative instruments

The Group's derivative financial instruments include forward foreign exchange contracts currency exchange

rate swap contracts interest rate swap contracts and foreign exchange options contracts etc. The initial

measurement is based on the fair value of the date of signing the derivative transaction contract and the

subsequent measurement is based on its fair value. A derivative with a positive fair value is recognized as an

asset; a negative fair value is recognized as a liability. Any gains or losses resulting from changes in fair value

that do not conform to the provisions of hedge accounting shall be directly recorded into the current profit or

loss.For a hybrid instrument containing an embedded derivative instrument if the host is a financial asset the

hybrid instrument as a whole shall be subject to the relevant provisions on the classification of financial

assets. If the host is not a financial asset the embedded derivative instrument shall be separated from the

hybrid instrument and accounted for as a separate derivative instrument if all of the following conditions are

met: the hybrid instrument is not measured at fair value through profit or loss; the economic characteristics

and risks of the embedded derivative are not closely related to the economic characteristics and risks of the

host; a separate instrument with the same terms as the embedded derivative would meet the definition of a

derivative. If it is not possible to measure the embedded derivative separately at the time of acquisition or on

the subsequent balance sheet date the hybrid instrument as a whole is designated as a financial asset or

financial liability measured at fair value through profit or loss.

(5) Fair value of financial instruments

For the determination of fair value of financial assets and financial liabilities see Note III.12.

(6) Impairment of financial assets

On the basis of expected credit losses the Group conducts impairment accounting treatment for the following

items and recognizes the allowance:

* Financial assets measured at amortized cost;

* Receivables and debt investments measured at fair value and accounted for in other comprehensive

income;

* Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue;

* Lease receivables;

* Financial guarantee contracts (except for financial assets measured at fair value through profit or loss

transfer of financial assets that do not meet the conditions for derecognition or those caused by

continuing involvement in transferred financial assets).

161Measurement of expected credit losses

Expected credit loss refers to the weighted average of the credit loss of a financial instrument weighted by

the risk of default. Credit loss refers to the difference between all contractual cash flows that are due to the

Group in accordance with the contract and all the cash flows that the Group expects to receive discounted at

the original effective interest rate that is the present value of all cash shortfalls.The Group calculates the probabilistic weighted amount of the present value of the difference between the

cash flows receivable under the contract and the cash flows expected to be received and recognizes the

expected credit loss taking into account reasonable and supportable information concerning past events

current conditions and forecast of future economic conditions with the respective risks of a default occurring

as the weights.The Group separately measures the expected credit losses of financial instruments at different stages. If the

credit risk of the financial instrument has not increased significantly since the initial recognition the financial

instrument is in the first stage and the Group shall measure the loss allowance at an amount equal to 12?month

expected credit losses; if the credit risk of the financial instrument has increased significantly since the initial

recognition but no credit losses have occurred the financial instrument is in the second stage and the Group

shall measure the loss allowance at an amount equal to lifetime expected credit losses; if credit losses have

occurred to a financial instrument since its initial recognition it is in the third stage and the Group shall

measure the loss allowance at an amount equal to lifetime expected credit losses.For financial instruments with low credit risk at the balance sheet date the Group assumes that the credit risk

has not increased significantly since the initial recognition and measures the loss allowance at an amount

equal to 12?month expected credit losses.Lifetime expected credit losses refers to the expected credit losses resulting from all possible events of default

during the entire expected life of a financial instrument. The expected credit losses within the next 12 months

refer to the expected credit loss caused by the default event of the financial instrument that may occur within

12 months after the balance sheet date (or the expected duration of the financial instrument if the expected

duration of the financial instrument is less than 12 months) and is part of lifetime expected credit losses.When measuring expected credit losses the Group shall take into account the longest contract period

(including the option to renew the contract) for which it is exposed to credit risk.The Group calculates interest income on the basis of the book value before impairment provisions and the

effective interest rate for financial instruments in stage I and stage II and with lower credit risk. For financial

instruments in the third stage the interest income is calculated on the basis of the amortized cost of the book

value less the impairment provision and the effective interest rate.For notes receivable accounts receivable accounts receivable financing other receivables contract assets

etc. if the credit risk characteristics of a customer are significantly different from those of other customers

in the group or the credit risk characteristics of such customer are significantly changed the Group shall

assess for impairment individually for such receivables. In addition to the receivables assessed for

impairment individually the Group divides the receivables into groups according to the credit risk

characteristics and calculates the loss allowance on the basis of the group.Notes receivable accounts receivable and contract assets

For notes receivable accounts receivable and contract assets regardless of whether there is a material

financing component the Group always measures its loss allowance at an amount equal to lifetime expected

credit losses.When an individual financial asset or contract asset cannot assess the information of expected credit loss at

a reasonable cost the Group divides the notes receivable accounts receivable and contract assets into groups

according to the credit risk characteristics calculates the expected credit losses based on the groups which

are determined as follows:

162A. Notes receivable

* Group 1 of notes receivable: Bank acceptance notes

* Group 2 of notes receivable: Commercial acceptance notes

* Group 3 of notes receivable: Usance letters of credit

B. Accounts receivable

* Group 1 of accounts receivable: Accounts receivable due from feed related customers

* Group 2 of accounts receivable: Accounts receivable due from related parties within the scope of

consolidation

* Group 3 of accounts receivable: Accounts receivable due from raw materials customers

For the notes receivable and contract assets divided into groups the Group calculates the expected credit loss

through default risk exposure and the lifetime expected credit loss rate by referring to the historical credit

loss experience combining the current situation and the forecast of the future economic situation.For the accounts receivable divided into groups the Group refers to the historical credit loss experience and

combines the current situation with the forecast of the future economic situation to compile a comparison

table between the age of receivables/overdue days and the lifetime expected credit loss rate and to calculate

the expected credit loss. The age of accounts receivable is calculated from the date of recognition/days

overdue is calculated from the expiration date of credit period.Other receivables

The Group divides other receivables into several groups according to the credit risk characteristics and

calculates the expected credit losses on the basis of the groups which are determined as follows:

* Group 1 of other receivables: Security deposits

* Group 2 of other receivables: Futures margin

* Group 3 of other receivables: Receivables due from external parties

* Group 4 of other receivables: Advance social insurance and housing fund

* Group 5 of other receivables: Petty cash

* Group 6 of other receivables: Other receivables due from related parties within the scope of

consolidation

* Group 7 of other receivables: Others

For other receivables divided into groups the Group calculates the expected credit losses by default risk

exposure and the expected credit losses rate over the next 12 months or the entire duration. For other

receivables grouped according to age the age is calculated from the date of recognition.Loans and advances to customers

For loans and advances to customer the Group calculates the expected credit loss through the exposure at

default and the expected credit loss rate within the next 12 months or the entire duration.Long-term receivables

The Group's long-term receivables include financial lease receivables contracting fees receivable in

installments security deposits receivables etc.

163According to the credit risk characteristics the Group divides financial lease receivables contracting fees

receivable in installments and security deposits receivables into several groups. The expected credit loss is

calculated on the basis of the groups which are determined as follows:

A. Finance lease receivables

* Group 1 of finance leases: Receivable due from related parties within the scope of consolidation.* Group 2 of finance leases: Receivable due from other customers.B. Contracting fees receivable in installments

* Group 1 of contracting fees receivable in installments: Receivable due from related parties within the

scope of consolidation.* Group 2 of contracting fees receivable in installments: Receivable due from other customers.C. Other long-term receivables

* Group 1 of long-term receivables: Security deposit receivables

* Group 2 of long-term receivables: Other receivables

For security deposits receivables the Group refers to historic credit losses experience combined with the

current situation and forecast for the future economic situation to calculate the expected credit losses by

default risk exposure and the lifetime expected credit loss rate.For other receivables and long-term receivables in addition to security deposits receivables the expected

credit losses are calculated by default risk exposure and the expected credit loss rate within the next 12

months or the entire duration.Debt investment and other debt investment

For debt investment and other debt investment the Group calculates the expected credit loss based on the

default risk exposure and the expected credit loss rate within the next 12 months or the entire duration

according to the nature of the investment and the various types of counterparties and risk exposures.Assessment of a significant increase in credit risk

By comparing the risk of default of financial instruments on the balance sheet date with the risk of default

on the initial recognition date the Group determines the relative change of default risk within the expected

duration of financial instruments so as to evaluate whether the credit risk of financial instruments has

significantly increased since the initial recognition.In determining whether credit risk has increased significantly since the initial recognition the Group

considers reasonable and supportable information including forward-looking information that can be

obtained without unnecessary additional cost or effort. Information considered by the Group includes:

* The debtor fails to pay the principal and interest as due under the contract;

* A material deterioration if any of the external or internal credit rating of the financial instrument that

has occurred or is expected to occur;

* A serious deterioration of the debtor's business results occurred or is expected to occur;

* A change in the existing or anticipated technological market economic or legal environment which will

have a material adverse effect on the debtor's ability to repay the Group.According to the nature of financial instruments the Group evaluates whether credit risk increases

significantly on the basis of individual financial instruments or a group of financial instruments. When

assessing on the basis of a group of financial instruments the Group may classify financial instruments based

164on common credit risk characteristics such as overdue information and credit risk rating.

Credit-impaired financial assets

On the balance sheet date the Group evaluates whether credit impairment has occurred in financial assets

measured at amortized cost and debt investments measured at fair value through other comprehensive income.When one or more events which have an adverse effect on the expected future cash flows of a financial asset

occur the financial asset becomes a credit-impaired financial asset. Evidence of credit impairment of

financial assets includes the following observable information:

* Major financial difficulties occur to the issuer or the debtor;

* A breach of contract by the debtor such as a default or late payment of interest or principal;

* The Group has granted concessions to the debtor would not otherwise be made based on economic or

contractual considerations related to the debtor's financial difficulties.* The debtor is likely to go bankrupt or undergo other financial restructuring;

* The financial difficulties of the issuer or debtor result in the disappearance of an active market for the

financial asset.Presentation of expected credit losses

In order to reflect the change of the credit risk of financial instruments since the initial recognition the Group

re-measures the expected credit losses on each balance sheet date and the increase or recovered amount of

the loss allowance thus formed shall be recorded into the current profit or loss as a loss allowance or gain.For a financial asset measured at amortized cost the loss allowance shall offset the carrying amount of the

financial asset as stated in the balance sheet; for the debt investment measured at fair value through other

comprehensive income the Group recognizes its loss allowance in other comprehensive income and does

not offset the carrying amount of the financial asset.Write-off

If the Group no longer reasonably expects that the contractual cash flows of a financial asset can be recovered

in its entirety or a portion thereof the carrying amount of the financial asset shall be directly written-off.Such a write-off constitutes derecognition of the relevant financial asset. This usually occurs when the Group

determines that the debtor does not have assets or sources of income that generate sufficient cash flows to

repay the amount to be written-off. However in accordance with the Group's procedures for recovering

amounts due the financial assets that have been written-off may still be affected by the execution activities.If a financial asset that has been written-off is recovered later a reversal of loss allowance shall be recorded

in profit or loss of the current period.

(7) Transfer of financial assets

Transfer of financial assets is the transfer or delivery of financial assets to another party (the transferee) other

than the issuer of financial assets.A financial asset is derecognized if the Group transfers substantially all the risks and rewards of ownership

of the financial asset to the transferee. A financial asset is not derecognized if the Group retains substantially

all the risks and rewards of ownership of the financial asset to the transferee.The Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial

asset the accounting treatments are as following: if control over the financial assets is surrendered the Group

derecognizes the financial assets and recognize any assets and liabilities arose; if the Group retains the control

of the financial assets financial assets to the extent of the continuing involvement in the transferred financial

assets by the Group and any relating liability are recognized.

165(8) Offset between financial assets and financial liabilities

When the Group has the legal right to offset the recognized financial assets and financial liabilities and the

legal rights is enforceable and the Group plans to settle by net amount or realize the financial assets and pay

off the financial liabilities the amount after being offset is presented in the balance sheet. Otherwise financial

assets and financial liabilities are presented separately in the balance Sheet and not allowed to offset against

each other.

12. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date.The Group measures related assets or liabilities at fair value assuming the assets or liabilities are exchanged

in an orderly transaction in the principal market; in the absence of a principal market assuming the assets or

liabilities are exchanged in an orderly transaction in the most advantageous market. Principal market (or the

most advantageous market) is the market that the Group can normally enter into a transaction on measurement

date. The Group adopts the presumptions that would be used by market participants in achieving the

maximized economic value of the assets or liabilities.For financial assets or financial liabilities with active markets the Group uses the quoted prices in active

markets as their fair value. Otherwise the Group uses valuation technique to determine their fair value.Fair value measurement of a non-financial asset takes into account market participants' ability to generate

economic benefits using the asset in its best way or by selling it to another market participant that would best

use the asset.The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data

are available to measure fair value maximizing the use of relevant observable inputs and using unobservable

inputs only if the observable inputs aren't available or impractical.Fair value level for assets and liabilities measured or disclosed at fair value in the financial statements are

determined according to the significant lowest level input to the entire measurement: Level 1 inputs are

quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the

measurement date; Level 2 inputs are inputs other than quoted prices included within Level 1 that are

observable for the assets or liabilities either directly or indirectly; Level 3 inputs are unobservable inputs for

the assets or liabilities.At the balance sheet date the Group revalues assets and liabilities being measured at fair value continuously

in the financial statements to determine whether to change the levels of fair value measurement.

13. Inventories

(1) Classification

Inventories include raw materials finished goods work in progress consumptive biological assets and costs

to fulfil a contract etc.

(2) Measurement method of cost of inventories

Inventories are initially measured at cost. If the inventories are managed by batch at the time of receipt and

delivery these inventories shall be carried forward at batch cost. Otherwise inventories are calculated by

using weighted average method.

(3) Basis for determining the net realizable value and method for provision for obsolete inventories

Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs

of completion and the estimated costs necessary to make the sale and relevant taxes. The net realizable value

is measured based on the verified evidences and considerations for the purpose of holding inventories and

166the effect of post balance sheet events.

The Group generally makes inventory provision on the basis of individual inventory items. For inventories

of large quantities with low unit prices inventory provision is made according to inventory categories.At the balance sheet date if the factors for previous inventory provision have disappeared inventory

provision is reversed to the extent of the original amount.

(4) Inventory count system

The Group maintains a perpetual inventory system.

14. Assets held for sale and discontinued operations

(1) Classification and measurement of non-current assets or disposal groups held for sale

The Group classifies a non-current asset or disposal group as held for sale when the carrying amount of the

non-current asset or disposal group will be recovered through a sale transaction (including an exchange

transaction of non-monetary assets with commercial substance) rather than through continuing use.Non-current assets mentioned above do not include investment properties subsequently measured with the

fair value model biological assets measured at fair value less costs to sell assets arising from employee

benefits financial assets deferred tax assets and contractual rights under insurance contracts.The disposal group is a group of assets to be disposed of by sale or otherwise together as a whole in a single

transaction and liabilities directly associated with those assets that will be transferred in the transaction. In

certain circumstances disposal groups include goodwill acquired in a business combination.A non-current asset or disposal group is classified as held for sale when all the following criteria are met:

according to the customary practices of selling such asset or disposal group in similar transactions the non-

current asset or disposal group is available for immediate sale in its present condition; the sale is highly

probable to occur that is the Group has made a resolution on a sale plan and entered into a legally binding

purchase agreement with other parties. The sale is expected to be completed within one year. The Group that

is committed to a sale plan involving loss of control of a subsidiary classifies all the investment in that

subsidiary as held for sale in its separate financial statements and classifies all the assets and liabilities of

that subsidiary as held for sale in its consolidated financial statements when the classification criteria for

held for sale are met regardless of whether the Group retains a non-controlling interest in its former

subsidiary after the sale.Non-current assets or disposal groups held for sale are initially and subsequently measured at the lower of

carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less

costs to sell is recognized as a loss allowance in profit or loss. The loss allowance recognized for a disposal

group firstly reduces the carrying amount of goodwill allocated to the disposal group and then reduces the

carrying amount of other non-current assets pro rata on the basis of the carrying amount of each non-current

asset in the disposal group.The Group recognizes a gain for any subsequent increase in fair value less costs to sell of an asset but not in

excess of the cumulative loss allowance that has been recognized after classified as held for sale. The reduced

carrying amount of goodwill is not recovered.The Group does not depreciate (or amortize) a non-current asset while it is classified as held for sale or while

it is part of a disposal group classified as held for sale. Interest and other expenses attributable to the liabilities

of a disposal group classified as held for sale continue to be recognized. If an investment or a part of

investment in an associate or a joint venture is classified as held for sale equity method is not used for the

part classified as held for sale while equity method is used for the rest part (the part not classified as held for

sale) continually. When the Group does not have material impact on an associate or a joint venture due to the

sale transaction it stops using equity method.The Group measures a non-current asset that ceases to be classified as held for sale at the lower of:

167* Its carrying amount of the asset or disposal group before it was classifying as held-for-sale and adjusted

for any depreciation amortization or impairment as if it has not being classified as held-for-sale;

* Its recoverable amount.

(2) Discontinued operations

The Group classifies a component as a discontinued operation either upon disposal of the operation or when

the operation meets the criteria to be classified as held for sale if it is separately identifiable and satisfies one

of the following conditions:

* It represents a separate major line of business or a separate geographical area of operations;

* It is part of a single coordinated plan to dispose of a separate major line of business or a separate

geographical area of operations;

* It is a subsidiary acquired exclusively with a view to resale.

(3) Presentation

The Group presents a non-current asset classified as held for sale and the assets of a disposal group classified

as held for sale as assets held for sale in the balance sheet. The liabilities of a disposal group classified as

held for sale is presented as liabilities held for sale in the balance sheet.The Group presents profit or loss from discontinued operations separately from profit or loss from continuing

operations in income statement. Loss allowance and reversal amount and any disposal gain or loss of a non-

current asset or disposal group classified as held for sale that does not meet the definition of a discontinued

operation is included in profit or loss from continuing operations. Any gain or loss from continuing operation

of discontinued operations including loss allowance and reversal amount and disposal gain or loss is

included in profit or loss from discontinued operations.A disposal group which is planned to cease operation rather than for sale and meets the criteria of a part of

discontinued operation the Group presents it as discontinued operation from the date of cessation.Where an operation is classified as discontinued in the current period profit or loss from continuing

operations and profit or loss from discontinued operations are separately presented in the income statement

for the current period. If the Group ceases to classify a discontinued operation as held for sale the information

previously presented in discontinued operations is reclassified and included in income from continuing

operations for all periods presented.

15. Long-term equity investments

Long-term equity investments include equity investments in subsidiaries and equity investments in joint

ventures and associates. An associate is an enterprise over which the Group has significant influence.

(1) Determination of initial investment cost

The initial cost of a long-term equity investment acquired through a business combination involving

enterprises under common control is the Group's share of the carrying amount of the subsidiary's equity in

the consolidated financial statements of the ultimate controlling party at the combination date. For a long-

term equity investment obtained through a business combination not involving enterprises under common

control the initial cost is the combination cost.A long-term equity investment acquired other than through a business combination: A long-term equity

investment acquired other than through a business combination is initially recognized at the amount of cash

paid if the Group acquires the investment by cash or at the fair value of the equity securities issued if an

investment is acquired by issuing equity securities.

(2) Subsequent measurement and recognition of profit or loss

168Long-term equity investments in subsidiaries are accounted for using the cost method. An investment in a

joint venture or an associate is accounted for using the equity method for subsequent measurement.For a long-term equity investment which is accounted for using the cost method except for cash dividends

or profit distributions declared but not yet distributed that have been included in the price or consideration

paid in obtaining the investments the Group recognizes its share of the cash dividends or profit distributions

declared by the investee as investment income for the current period.For a long-term equity investment which is accounted for using the equity method where the initial cost of

a long-term equity investment exceeds the Group's interest in the fair value of the investee's identifiable net

assets at the date of acquisition the investment is initially recognized at cost. Where the initial investment

cost is less than the Group's interest in the fair value of the investee's identifiable net assets at the date of

acquisition the investment is initially recognized at the investor's share of the fair value of the investee's

identifiable net assets and the difference is recognized in profit or loss.Under the equity method the Group recognizes its share of the investee's profit or loss and other

comprehensive income as investment income or losses and other comprehensive income respectively and

adjusts the carrying amount of the investment accordingly. Once the investee declares any cash dividends or

profit distributions the carrying amount of the investment is reduced by the amount attributable to the Group.Changes in the Group's share of the investee's owners' equity other than those arising from the investee's net

profit or loss other comprehensive income or profit distribution (referred to as other changes in owners'

equity) is recognized directly in the Group's equity and the carrying amount of the investment is adjusted

accordingly. In calculating its share of the investee's net profits or losses other comprehensive income and

other changes in owners' equity the Group recognizes investment income and other comprehensive income

after making appropriate adjustments to align the accounting policies or accounting periods with those of the

Group based on the fair value of the investee's identifiable net assets at the date of acquisition.When the Group becomes capable of exercising joint control or significant influence (but not control) over

an investee due to additional investment or other reasons the Group uses the fair value of the previously-

held equity investment together with additional investment cost as the initial investment cost under the

equity method. If the original equity is classified as non-trading equity instrument investment measured at

fair value and its changes are included in other comprehensive income the relevant accumulative changes in

fair value originally included in other comprehensive income will be transferred to retained earnings when

changed to equity method accounting.When the Group can no longer exercise joint control of or significant influence over an investee due to partial

disposal of the equity investment or other reasons the remaining equity investment shall be accounting for

using Accounting Standard for Business Enterprises No. 22 - Recognition and Measurement of Financial

Instruments and the difference between the fair value and the carrying amount of the remaining equity

investment shall be charged to profit or loss for the current period at the date of the loss of joint control or

significant influence. Any other comprehensive income previously recognized under the equity method shall

be accounted for on the same basis as would have been required if the Group had directly disposed of the

related assets or liabilities for the current period upon discontinuation of the equity method. Other movement

of owner's equity related to original equity investment is transferred to profit or loss for the current period.When the Group can no longer exercise control over an investee due to partial disposal of the equity

investment or other reasons and the remaining equity after disposal can exercise joint control of or significant

influence over an investee the remaining equity is adjusted as using equity method from acquisition. When

the remaining equity can no longer exercise joint control of or significant influence over an investee the

remaining equity investment shall be accounted for using Accounting Standard for Business Enterprises No.

22-Recognition and Measurement of Financial Instruments and the difference between the fair value and the

carrying amount of the remaining equity investment shall be charged to profit or loss for the current period

at the date of loss of control.When the Group can no longer exercise control over an investee due to new capital injection by other

investors and the Group can exercise joint control of or significant influence over an investee the Group

recognizes its share of the investee's new added net assets using new shareholding percentage. The difference

between its new share of the investee's new added net assets and its decreased shareholding percentage of

169the original investment is recognized in profit or loss. And the Group adjusts to the equity method using the

new shareholding percentage as if it uses the equity method since it obtains the investment.Unrealized profits and losses resulting from transactions between the Group and its associates or joint

ventures are eliminated to the extent of the Group's interest in the associates or joint ventures. Unrealized

losses resulting from transactions between the Group and its associates or joint ventures are eliminated in the

same method as unrealized gains but only to the extent that there is no impairment.

(3) Criteria for determining the existence of joint control or significant influence over an investee

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. When

assessing whether the Group can exercise joint control over an investee the Group first considers whether

no single participant party is in a position to control the investee's related activities unilaterally and then

considers whether strategic decisions relating to the investee's related activities require the unanimous

consent of all participant parties that sharing of control. All the parties or a group of the parties control the

arrangement collectively when they must act together to direct the relevant activities. When more than one

combination of the parties can control an arrangement collectively joint control does not exist. A party that

holds only protective rights does not have joint control of the arrangement.Significant influence is the power to participate in the financial and operating policy decisions of an investee

but does not have control or joint control over those policies. When determining whether the Group can

exercise significant influence over an investee the effect of potential voting rights (for example warrants

share options and convertible bonds) held by the Group or other parties that are currently exercisable or

convertible shall be considered.When the Group directly or indirectly through subsidiaries owns 20% of the investee (including 20%) or

more but less than 50% of the voting shares it has significant influence over the investee unless there is clear

evidence to show that in this case the Group cannot participate in the production and business decisions of

the investee and cannot form a significant influence. When the Group owns less than 20% of the voting

shares generally it does not have significant influence over the investee unless there is clear evidence to

show that in this case the Group can participate in the production and business decisions of the investee so

as to form a significant influence.

(4) Equity investments held-for-sale

Accounting for an entity investment or a portion of an equity investment in an associate or a joint venture

that is classified as held for sale refers to Note II.14.Any remaining equity investment that has not been classified as held for sale shall be accounted for using the

equity method.When an equity investment in an associate or a joint venture previously classified as held for sale no longer

meets the criteria to be so classified it is accounted for using the equity method retrospectively as from the

date of its classification as held for sale.

(5) Method of impairment testing and impairment provision

For investments in subsidiaries associates and joint ventures refer to Note III. 23 for the Group's method of

asset impairment.

16. Investment properties

Investment properties are properties held either to earn rental income or for capital appreciation or for both.The Group's investment properties include leased land use rights land use right held with intention of

appreciation and subsequent transfer and leased buildings.Investment properties are initially measured at acquisition cost and depreciated or amortized using the same

policy as that for fixed assets or intangible assets.

170For the impairment of the investment properties accounted for using the cost model refer to Note III. 23.

Gains or losses arising from the sale transfer retirement or disposal of an item of investment property are

determined as the difference among the net disposal proceeds the carrying amount of the item related taxes

and surcharges and are recognized in profit or loss for current period.

17. Fixed assets

(1) Recognition of fixed assets

Fixed assets represent the tangible assets held by the Group for use in production of goods use in supply of

services rental or for administrative purposes with useful lives over one accounting year.Fixed assets are only recognized when its related economic benefits are likely to flow to the Group and its

cost can be reliably measured.Fixed asset are initially measured at cost.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic

benefits related to them are likely to flow into the Group and their costs can be measured reliably; the daily

repair expenses of fixed assets that do not meet the criteria for subsequent expenditure of fixed assets

capitalization shall be included in the current profit or loss or the cost of relevant assets according to the

beneficiary at the time of occurrence. The carrying amount of the replaced part shall be derecognized.

(2) Depreciation of fixed assets

The Group applies straight line method for depreciation. Fixed asset begin to be depreciated when it reaches

the state of intended use and stop being depreciated when being derecognized or classified as non-current

assets held for sale. Without considering impairment provision the Group’s annual depreciation rates are

shown as follows according to the categories expected useful lives and estimated residual values rates.Category Estimated useful life Residual value rate Annual depreciation rate (years) % %

Plant and buildings 5-40 (Note) 5.00 19.00-2.38

Machinery and equipment 3-12 5.00 31.67-7.92

Motor vehicles 5 5.00 19.00

Electronic equipment 3-5 5.00 31.67-19.00

Other equipment 3-5 5.00 31.67-19.00

Note: * For the immovable buildings on the leased land they are depreciated over the shorter of the lease

term of land use right and the expected useful lives of the immovable buildings.* The Group purchased lands in India Ecuador Indonesia Egypt and Bangladesh. No depreciation

is recognized for these lands because their estimated useful lives is uncertain. The Group tests for

impairment on these lands every year.For impaired fixed assets depreciation rate is calculated based on the carrying amounts after deducting the

provision for impairment.

(3) For the impairment of the fixed assets please refer to Note III. 23.

(4) Useful lives estimated residual values and depreciation methods are reviewed each year-end.

The Group adjusts the useful lives of fixed assets if their expected useful lives are different with the original

estimates and adjusts the estimated net residual values if they are different from the original estimates.

(5) Disposal of fixed assets

171When the fixed assets are disposed or no economic benefit is expected to be generated through the use or

disposal the fixed assets shall be derecognized. The amount of the disposal income from the sale transfer

scrapping or destruction of fixed assets after deducting its carrying value and relevant taxes is recorded into

the current profit or loss.

18. Construction in progress

Construction in progress is recognized based on the actual construction cost including all expenditures

incurred for construction Items capitalized borrowing costs and any other costs directly attributable to

bringing the asset to working condition for its intended use.Construction in progress is transferred to fixed asset when it is ready for its intended use.For the impairment of construction in progress please refer to Note III. 23.

19. Borrowing costs

(1) Capitalization criteria

Borrowing costs that are directly attributable to the acquisition construction or production of a qualifying

asset shall be capitalized as part of the cost of that asset. Other borrowing costs are expensed in profit or loss

as incurred. The capitalization of borrowing costs shall commence only when the following criteria are met:

* Capital expenditures have been incurred including expenditures that have resulted in payment of cash

transfer of other assets or the assumption of interest-bearing liabilities;

* Borrowing costs have been incurred;

* The activities that are necessary to prepare the asset for its intended use or sale have commenced.

(2) Capitalization period

The capitalization of borrowing costs ceases when the asset under acquisition or construction becomes ready

for its intended use the borrowing costs incurred thereafter are recognized in profit or loss for the current

period.Capitalization of borrowing costs is suspended during periods in which the acquisition or construction of a

fixed asset is interrupted abnormally and the interruption lasts for more than 3 months until the acquisition

or construction is resumed.

(3) Capitalization rate of borrowing costs and calculation basis of capitalized amount

For interest expense actually incurred on specific borrowings the eligible capitalized amount is the net

amount of the borrowing costs after deducting any investment income earned before some or all of the funds

are used for expenditures on the qualifying asset. To the extent that the Group borrows funds generally and

uses them for the purpose of obtaining a qualifying asset the Group shall determine the amount of borrowing

costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset the

capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the

Group that are outstanding during the period other than borrowings specifically for the purpose of obtaining

a qualifying asset.In the capitalization period exchange differences of specific borrowings in foreign currency shall be

capitalized; exchange differences of general borrowings in foreign currency is recognized in profit or loss for

the current period.

20. Biological assets

(1) Recognition criteria for biological assets

172Biological assets are assets that composed of living animals and plants. Biological assets shall be recognized

if they satisfy all of the following conditions:

* The entity owns or controls the biological asset due to past transactions or events;

* The economic benefits or potential service related to the biological asset are probable to flow into the

entity;

* The cost of the biological asset can be measured reliably.

(2) Classification of biological assets

The Group's biological assets include consumptive biological assets and productive biological assets.* Consumptive biological assets

Consumptive biological assets are the biological assets held-for-sale or harvested as agricultural products in

the future including livestock for sale etc. Consumptive biological assets are initially measured at cost. The

cost of self-propagating or breeding consumptive biological assets is the necessary expenditure incurred that

can directly attributable to the asset before the asset is sold or shipped including capitalized borrowing costs.Subsequent expenditures after harvest such as management protection and feeding expenses are recognized

in the profit or loss for the current period.When the consumptive biological assets are harvested or sold the cost of goods sold is recognized based on

the carrying amount using the weighted average method.* Productive biological assets

Productive biological assets are the biological assets held for the purpose of producing agricultural products

providing services or leasing including livestock production. Productive biological assets are initially

measured at cost. The cost of productive biological asset by self-growing or propagating is the necessary

expenditure directly attributable to the asset incurred before the asset reaches its intended production and

operation purpose including capitalized borrowing costs.The subsequent expenditures for managing protecting and feeding the productive biological assets incurred

after crown closure or reaching its intended objective of production and operation is recognized in profit or

loss for the current period.Productive biological assets are depreciated by straight-line method. Depreciation for each period is

calculated and recognized based on the estimated useful lives less residual value of each type of biological

assets.At the end of each year the Group reviews the useful lives estimated net residual values and depreciation

methods of productive biological assets. If there is any change it is treated as a change in accounting

estimates.The proceeds on disposal of productive biological asset for the sales inventory loss dead or damage less the

carrying amount and related taxes are recognized in profit or loss for the current period.

(3) Impairment of biological assets

When the net realizable value of a consumptive biological asset is lower than its carrying amount the

difference is recognized as the impairment provision and the corresponding impairment loss is recognized in

profit or loss for the current period. If the previous factors caused the decline in value of consumptive

biological asset have disappeared at the balance sheet date the previously recognized provision for decline

in value of consumptive biological assets is reversed to the extent of provision recognized in the past the

reversal amount is recognized in profit or loss for the current period.For the impairment of productive biological assets please refer to Note III. 23.

17321. Intangible assets

Intangible assets include land use rights patent rights non-patent rights software use rights trademarks

marketing network and maritime rights etc.Intangible asset is initially measured cost and its useful life is determined at the time of acquisition. An

intangible asset with a finite useful life is amortized by a method which can reflect the expected realization

of economic benefits related to the asset since the intangible asset is available for use. When the expected

realization of economic benefits cannot be reliably determined intangible asset is amortized under straight-

line method. An intangible asset with an indefinite useful life is not amortized.At the end of each year the Group reviews the useful life and amortization method of intangible assets with

finite useful life. If there is any change adjustment made to original estimates and it shall be treated as the

change of accounting estimate.Where it is expected that an intangible asset will no longer generate future economic benefits for the entity

as at the balance sheet date the carrying amount of the intangible asset shall be charged to profit or loss for

the current period.For the impairment of intangible assets please refer to Note III. 23.

22. Research and development expenditure

The Group’s research and development (R&D) expenses are directly related to R&D activities including

employee compensation for R&D personnel direct input costs depreciation and long-term deferred expenses

amortization of intangible assets expenses for commissioned external research and development and other

expenses. Among these the salaries of R&D personnel are allocated to R&D expenses based on project hours.Equipment production lines and premises shared between R&D activities and other production and business

operations are allocated to R&D expenses based on reasonable allocation factors.Expenditure on an internal research and development project is classified into expenditure incurred during

the research phase and expenditure incurred during the development phase.Expenditure during the research phase is expensed when incurred.Expenditure during the development phase is capitalized if the product or process is technically and

commercially feasible; the Group intends to complete the development; the intangible asset can generate

economic benefits including there is evidence that the products produced using the intangible asset has a

market or the intangible asset itself has a market; if the intangible asset is for internal use there is evidence

that there is usage for the intangible asset; there is sufficient support in terms of technology financial

resources and other resources in order to complete the development and use or sell the intangible asset; and

development costs can be measured reliably. Other development expenditure is recognized as an expense in

the period in which it is incurred.Research and development projects of the Group will enter into the development phase when they meet the

above conditions technical and economic feasibility research is finished and necessary approval of the

project is obtained.Capitalized expenditure on the development phase is presented as development costs in the balance sheet

and is transferred to intangible assets when the project is completed to its intended use.

23. Impairment of assets

The impairment of long-term equity investments in subsidiaries associates and joint ventures investment

properties measured by the cost model fixed assets construction in progress productive biological assets

measured by the cost model right-of-use assets intangible assets goodwill etc. (excluding inventories

investment properties measured by the fair value model deferred tax assets and financial assets) are

determined as follows:

174At the balance sheet date the Group assesses whether there is any indication of impairment. If any indication

exists the Group will estimate the recoverable amount and test for impairment. For goodwill arising from a

business combination intangible assets with indefinite useful life and intangible assets that are not ready for

use are tested for impairment annually regardless of whether there is any indication of impairment.The recoverable amount of an asset is the higher of its fair value less disposal costs and the present value of

expected future cash flows. The Group estimates the recoverable amount based on each individual asset. If

it is impossible to estimate the recoverable amount of each individual asset the Group determines the

recoverable amount for the asset group to which the asset belongs. An asset group is determined based on

whether the main cash inflow generated by the asset group is independent of the cash inflow of other assets

or asset groups.An impairment loss is recognized in profit or loss when the recoverable amount of an asset is less than its

carrying amount. A provision for impairment of the asset is recognized accordingly.For the impairment test of goodwill the carrying amount of goodwill arising from a business combination

shall be allocated to the relevant asset groups by using a reasonable method from the date of acquisition. If

the carrying amount of goodwill is unable to be allocated to the asset group it shall be allocated to the relevant

set of asset groups. Relevant asset group or set of asset groups is the asset group or group of asset groups

that is expected to benefit from the synergies of the combination and not greater than the reportable segment

of the Group.If any impairment indication exists in asset group or set of asset groups related to goodwill the Group shall

perform an impairment test for the asset group or set of asset groups which does not contain goodwill first

the recoverable amount is calculated and recognized the corresponding impairment losses. Then the Group

shall perform an impairment test for the asset group or set of asset groups that contain goodwill by comparing

its carrying amount and recoverable amount. If the recoverable amount is less than the carrying amount

impairment loss of goodwill is recognized.Once an impairment loss is recognized it cannot be reversed in a subsequent period.

24. Long-term deferred expenses

Long-term deferred expenses are recorded at the actual cost and amortized using a straight-line method

within the benefit period. For long-term deferred expense that cannot bring benefit in future period the Group

recognized its amortized cost in profit or loss for the current period.

25. Employee benefits

(1) Scope of employee benefits

Employee benefits refer to all forms of consideration or compensation given by the Group in exchange for

service rendered by employees or for the termination of employment relationship. Employee benefits include

short-term employee benefits post-employment benefits termination benefits and other long-term employee

benefits. Benefits provided to the Group's spouse children dependents family members of deceased

employees or other beneficiaries are also part of the employee benefits.According to liquidity employee benefits are presented as employee benefits payable and long-term

employee benefits payable on the balance sheet.

(2) Short-term employee benefits

In the current period the Group has accrued for the actual wages bonuses medical insurance for employees

based on standard rate work injury insurance and maternity insurance and other social insurance and housing

fund incurred and these are recognized as liabilities and corresponding costs in the profit or loss.

(3) Post-employment benefits

Post-employment benefit plan includes defined contribution plans and defined benefit plans. Defined

175contribution plans are post-employment benefit plans which an entity pays a fixed fee to an independent fund

and has no further payment obligation. Defined benefit plans are post-employment benefit plans other than

defined contribution plans.Defined contribution plans

Defined contribution plans include basic pension insurance unemployment insurance etc.The contribution amount calculated according to the define contribution plan is recognized as a liability as

the employee provides services with a corresponding charge to profit or loss or included in the cost of assets

where appropriate.Defined benefit plans

For defined benefit plans independent actuaries estimate the actuarial value at the balance sheet date to

determine the cost of welfare by using the projected unit credit method. The Group recognizes the following

components of employee benefits cost arising from defined benefit plan:

* Service cost comprising current service cost past service cost and any gain or loss on settlement. Current

service cost is the increase in the present value of the defined benefit plan obligation resulting from employee

service in the current period. Past service cost is the increase or decrease in the present value of the defined

benefit plan obligation for employee service in prior periods resulting from a plan amendment.* Net interest on the net defined benefit plan liabilities or assets including interest income on plan assets

interest cost on the defined benefit plan obligation and interest on the effect of the asset ceiling.* Changes as a result of re-measurement of the net defined benefit liabilities or assets.Item * and item * above should be recognized in profit or loss for the current period unless another

accounting standard requires or permits the inclusion of the employee benefit costs in the cost of assets. Item

* shall be recognized in other comprehensive income and shall not reclassified to profit or loss in a

subsequent period. On termination of defined benefit plans other comprehensive income previously

recognized is transferred to retained earnings.

(4) Termination benefits

The Group provides for termination benefits to the employees and shall recognize an employee benefits

liability for termination benefits with a corresponding charge to the profit or loss for the current period at

the earlier of the following dates: When the Group cannot unilaterally withdraw the offer of the termination

benefits because of an employment termination plan or a redundancy proposal; or when the Group recognizes

the costs or expenses relating to a restructuring that involves the payment of the termination benefits.When the Group implements an internal retirement plan the economic compensation before the formal

retirement date is attributable to the termination benefits. The salaries and social insurance payment to be

paid for the early-retired employee are recognized as one-off expense in profit or loss for the current period

between the date when the employee stops rendering service and formal retirement. Economic compensation

after the date of formal retirement (such as normal pension) shall be accounted for as post-employment

benefits.

(5) Other long-term employee benefits

Other long-term employee benefits provided by the Group to the employees satisfied the conditions for

classifying as a defined contribution plan; those benefits shall be accounted for in accordance with the above

requirements relating to defined contribution plan. When the benefits satisfied a defined benefit plan it shall

be accounted for in accordance with the above requirements relating to defined benefit plan but the

movement of net liabilities or assets in re-measurement of defined benefit plan shall be recorded in profit or

loss for the current period or cost of relevant assets.

17626. Provisions

A provision is recognized for an obligation related to a contingency if all the following conditions are satisfied:

(1) The Group has a present obligation;

(2) It is probable that an outflow of economic benefits will be required to settle the obligation;

(3) The amount of the obligation can be estimated reliably.

A provision is initially measured at the best estimate of the expenditure required to settle the related present

obligation. Factors pertaining to a contingency such as the risks uncertainties and time value of money are

taken into account as a whole in reaching the best estimate. Where the effect of the time value of money is

material provisions are determined by discounting the expected future cash flows. The Group reviews the

carrying amount of a provision at the balance sheet date and adjusts the carrying amount to the current best

estimate.If all or part of the expenditure necessary for settling the provision is expected to be compensated by a third

party the amount of compensation is separately recognized as an asset when it is basically certain to be

received. The recognized compensation amount shall not exceed the carrying amount of the provision.

27. General risk provision

General risk allowance is a provision from unrecognized earnings to partially cover probable losses that have

not been identified after deducting the provision for loan losses that has been made after calculating the

estimated value of the potential risks of risk assets using the standard method. Risk assets include loans and

advances issued and other current assets held by subsidiaries engaged in financial operations.

28. Share-based payment and equity instruments

(1) Types of share-based payment

The Group's share-based payment is classified into equity-settled share-based payment and cash-settled

share-based payment.

(2) Recognition method of the fair value of equity instruments

If an active market exists for the equity instruments such as stock option granted by the Group the fair value

of the equity instrument shall be determined according to the quoted price in the active market. If an active

market does not exist the fair value of the equity instrument shall be determined by using the option pricing

model. The Group considers the following factors when selecting the model: A) the exercise price of the

option; B) the validity period of the option; C) current price of underlying stock; D) expected volatility of

the stock price; E) expected dividend of the stock; F) risk-free interest rate within the validity period of the

option.

(3) Basis for the best estimate of exercisable equity instruments

At each balance sheet date of the waiting period the Group revises the number of equity instruments that

will ultimately vest based on the best estimate of the latest number of eligible employees and other subsequent

information. On vesting date the number of expected vested equity instruments should be agreed with the

actual number vested.

(4) Accounting treatments for the implementation modification and termination of share-based payment plans

Equity-settled share-based payment is measured by the fair value of the equities instruments granted to

employees. As to an equity-settled share-based payment that the right may be exercised immediately after

the grant the fair value of the equity instruments shall on the date of the grant be charged to the relevant

cost or expense and the capital reserves shall be adjusted accordingly. As to an equity-settled share-based

payment that the right cannot be exercised until the vesting period comes to an end or until the prescribed

177performance conditions are met then on each balance sheet date within the vesting period the services

obtained in the current period shall based on the best estimate of the number of vested equity instruments

be charged to the relevant costs or expenses at the fair value of the equities instruments on the date of the

grant and the capital reserves shall be adjusted accordingly. After the vesting date the confirmed related

costs or expenses and the total owner's equity will not be adjusted.Cash-settled share-based payments is measured by the fair value of liability undertaken by the Group at the

mean of share or other equity instruments. As to a cash-settled share-based payment instruments that the right

may be exercised immediately after the grant the fair value of the liability undertaken by the Group shall on

the date of the grant be charged to the relevant costs or expenses and the liabilities shall be increased

accordingly. As to a cash-settled share-based payment that the right may not be exercised until the vesting

period comes to an end or until the specified performance conditions are met on each balance sheet date with

in the vesting period the services obtained in the current period shall based on the best estimate of the

information about the vesting conditions be charged to the relevant costs or expenses and the corresponding

liabilities at the fair value of the liability undertaken by the Group. On each balance sheet date and settlement

date before the settlement of related liabilities the fair value of liabilities is re-measured and the changes are

included in the current profit and loss.When the Group modifies the share-based payment plan if the fair value of the distributed equity instrument

is increased due to the modification the increment of the obtained services shall be recognized accordingly;

if the quantity of the distributed equity instrument is increased due to the modification the increment of

obtained services shall be recognized accordingly. The increase in the fair value of equity instruments refers

to the difference between the fair value of equity instruments before and after modification on the

modification date. If the modification decreases the fair value of equity instruments granted or adopt other

terms and conditions unfavorable to the employees the accounting treatment for the services obtained will

continue and be deemed that the change has never occurred unless the Group cancelled some or all of the

granted equity instruments.If the granted equity instruments are canceled or settled within the vesting period (except that canceled due

to failure to meet the vesting conditions) the Group shall regard the canceling or settlement as acceleration

of the vest and immediately recognize the amount supposed to be recognized within the residual vesting

period in the current profit and loss and capital reserves. If employees or other parties can choose to meet the

conditions of unfeasible rights but fail to meet them within the waiting period the Group will take it as the

cancellation of the instrument for granting rights and interests.

29. Revenue

(1) General principles

The Group recognizes the revenue when it satisfied its performance obligation stated in the contract that is

when the control of the good or service is transferred to the customer.If the contract comprises two or more performance obligations the Group allocates the transaction price to

each performance obligation based on the proportion of sales price for the goods or service committed by

each performance obligation at the commencement date of the contract. Revenue is recognized based on the

allocated transaction price for each performance obligation.A performance obligation is satisfied over time if one of the following criteria is met. Otherwise it is satisfied

at a point in time.* The customer simultaneously receives and consumes the economic benefits provided by the Group's

performance as the Group's performs its obligation;

* The Group's performance produces good that the customer control as the good is created;

* The Group's performance produces goods without an alternative use to the Group and the Group has an

enforceable right to payment for performance completed to date.

178For performance obligations satisfied over time the Group recognizes revenue over time by measuring the

progress towards complete satisfaction of those performance obligations. If the Group cannot reasonably

measure such progress but expects to recover the costs incurred in satisfying the performance obligation

revenue is recognized only to the extent of the costs incurred until such time that the progress can be

reasonably measured.For performance obligation satisfied at a point in time the Group recognizes revenue at the time when the

control of good or service is transferred to the customer. The Group considers the following indications when

determining whether the control of good or service is transferred to the customer:

* The Group has a present right to payment for goods or services i.e. the customer has a present payment

obligation for the goods.* The Group has transferred the legal title of the goods to the customer i.e. the customer has the legal title.* The Group has transferred the physical goods to the customer i.e. the customer has physical possession.* The Group has transferred the significant risks and rewards of ownership of the goods to the customer

i.e. the customer has the significant risks and rewards of ownership.* The customer has accepted the goods.* Other indicators that the customer has obtained control of the goods.

(2) Specific methods

The Group's revenue is mainly derived from sale of goods.Sales of goods

The Group produces and sells feed seedling animal health products hog and aquatic products.The Group recognizes the revenue when the customers collect the goods by door or the goods have been

delivered to the designated location and the customers accept the goods and obtain the control of goods.The credit periods granted by the Group to its customers are consistent with the practice in each industry and

have no significant financing components.The Group's cooperation model with franchiser is buyout sales and sales revenue recognition is consistent

with the direct sales model.Some contracts with customers have sales rebate arrangements resulting in variable consideration. The

Group determines the best estimate of variable consideration on the basis of expectation or the most likely

value to occur. The transaction price that includes variable consideration does not exceed the value by which

it is highly unlikely that a material reversal of the cumulative recognized revenue will occur when the related

uncertainty is removed.For the sale of goods with sales return clauses revenue recognition is limited to extent of cumulative

recognized revenue that is unlikely to be materially reversed. The Group recognizes a liability according to

the expected refund. The carrying amount of the returned goods less than the estimated cost to recover the

goods (including the decline in value for the returned goods) is recognized as an asset at the same time.

30. Contract costs

Contract costs include the incremental costs of obtaining a contract and costs to fulfill a contract.Incremental costs of obtaining a contract are the cost only incurred if the contract is obtained (i.e.commission). The Group expects to recover these costs and recognized as an asset of incremental costs of

obtaining a contract. Other expenditures of obtaining a contract except for the incremental costs expected to

179be recovered are recognized in profit or loss for the current period when incurred.

The Group recognizes the costs to fulfill a contract as an asset if the costs are incurred for fulfilling the

performance obligation of the contract do not fall within the scope of other accounting standards such as

inventory and meet the following criteria:

* The costs directly related to a contract or an anticipated contract that can specifically identify including

direct labor direct materials manufacturing overheads (or similar expenses) costs explicitly chargeable to

the customer and other costs incurred solely for the contract;

* The costs generate or enhance resources of the Group that will be used in satisfying performance

obligations in the future.* The cost is expected to be recovered.Assets recognized from costs of obtaining a contract and costs to fulfill a contract (hereinafter referred to as

assets related to contract cost) shall be amortized in the profit or loss for the current period on the same basis

as revenue recognition of goods or services related to such assets. If the amortization period does not exceed

one year it is recognized in profit or loss for the current period when it occurs.When the carrying amount of the assets related to the contract cost is greater than the difference between the

following two items. The Group shall make provision for impairment of the excess amount and recognize as

impairment loss:

* The remaining consideration that the Group is expected to be received as a result of the transfer of the

goods or services related to the asset;

* Costs probably incurred for transferring of the relevant goods or services.

31. Government grants

A government grant is recognized when there is reasonable assurance that the grant will be received and that

the Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the amount received

or receivable. If a government grant is in the form of a transfer of a non-monetary asset it is measured at fair

value. If fair value cannot be reliably determined it is measured at a nominal amount of RMB 1.Government grants related to assets are grants whose primary condition is that the Group qualifying for them

should purchase construct or otherwise acquire long-term assets. Government grants related to income are

grants other than those related to assets.For government grants with unspecified purpose the amount of grants used to form a long-term asset is

regarded as government grants related to an asset the remaining amount of grants is regarded as government

grants related to income. If it is not possible to distinguish the amount of grants is treated as government

grants related to income.A government grant related to an asset is offset against the carrying amount of the related asset or recognized

as deferred income and amortized to profit or loss over the useful life of the related asset on a reasonable and

systematic manner. A grant that compensates the Group for expenses or losses already incurred is recognized

in profit or loss or offset against related expenses directly. A grant that compensates the Group for expenses

or losses to be incurred in the future is recognized as deferred income and included in profit or loss or offset

against related expenses in the periods in which the expenses or losses are recognized. Government grants

measured at nominal amounts are directly recognized in the profit or loss for the current period. The Group

applies the same method to the same or similar government grant.A grant related to ordinary activities is recognized as other income or offset against related expenses based

on the economic substance. A grant not related to ordinary activities is recognized as non-operating income.

180For repayment of a government grant if the government grant is offset against the carrying amount of the

related asset at the time of recognition the carrying amount of the related asset shall be adjusted. If there is

related deferred income the repayment is offset against the carrying amount of the deferred income and any

excess is recognized in profit or loss for the current period. Otherwise the repayment is recognized

immediately in profit or loss for the current period.If the government directly appropriates the interest subsidy to the lending bank the Group recognized the

loan as the amount received and interest expense is calculated using the loan principal and policy-related

preferential interest rate. If the government directly appropriates the interest subsidy to the Group the interest

subsidy is offset against interest expense.

32. Deferred tax assets and deferred tax liabilities

Income tax comprises of current tax and deferred tax. Current tax and deferred tax are recognized in profit

or loss except to the extent that they relate to transactions or items recognized directly in equity and goodwill

arising from a business combination.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differences

respectively being the differences between the carrying amounts of assets and liabilities for financial

reporting purposes and their tax bases.All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred in

the following transactions:

(1) initial recognition of goodwill or assets or liabilities in a transaction that is not a business combination

and that affects neither accounting profit nor taxable profit (or deductible loss) (except for individual

transactions in which the initial recognition of assets and liabilities results in equal amounts of taxable

temporary differences and deductible temporary differences);

(2) taxable temporary differences associated with investments in the Group associates and joint ventures

and the Group is able to control the timing of the reversal of the temporary difference and it is probable that

the temporary difference will not reverse in the foreseeable future.The Group recognizes a deferred tax asset for the deductible temporary differences deductible losses and tax

credits carried forward to subsequent periods to the extent that it is probable that future taxable profits will

be available against which deductible temporary differences deductible losses and tax credits can be utilized

except for those incurred in the following transactions:

(1) a transaction that is not a business combination and that affects neither accounting profit nor taxable

profit (or deductible loss) (except for individual transactions in which the initial recognition of assets and

liabilities results in equal amounts of taxable temporary differences and deductible temporary differences);

(2) deductible temporary differences associated with investments in the Group associates and joint ventures

the corresponding deferred tax asset is recognized when both of the following conditions are satisfied: it is

probable that the temporary difference will reverse in the foreseeable future; and it is probable that taxable

profits will be available in the future against which the temporary difference can be utilized.At the balance sheet date the Group measures the deferred tax assets and deferred tax liabilities according

to the applicable tax rate during the period when the assets are expected to be recovered or the liabilities are

settled and reflect the income tax impact of the expected asset recovery or liability settlement method on the

balance sheet date.At the balance sheet date the Group reviews the carrying amount of any deferred tax asset. If it is probable

that sufficient taxable profits will not be available in future periods to allow the benefit of the deferred tax

asset to be utilized the carrying amount of the deferred tax asset is reduced. Any such reduction in amount

is reversed to the extent that it becomes probable that sufficient taxable profits will be available.At the balance sheet date deferred tax assets and deferred tax liabilities are presented as net amounts after

offsetting when both of the following criteria are met:

181(1) The taxpayer of the Group has the legal right to net settlement of current tax assets and current tax

liabilities;

(2) Deferred tax assets and deferred tax liabilities are related to income taxes levied by the same tax collection

authority on the same taxpayer within the Group.

33. Leases

(1) Identification of leases

At inception of a contract the Group as a lessee or a lessor shall assess whether the customer under the

contract has the right to obtain substantially all of the economic benefits from use of the identified asset

during the period of use and has to right to direct the use of the identified asset during the period of use. The

Group considers the contract to be a lease or to include a lease if one of the parties to the contract conveys

the right to control the use of one or more identified assets for a certain period of time in exchange for

consideration.

(2) The Group acts as the lessee

At the commencement date the Group recognizes the right-of-use assets and lease liabilities for all leases

except for short-term leases and leases of low value assets that are accounted for according to the simplified

method.For the accounting policy of the right-of-use assets see Note III. 34.Lease liabilities are initially measured at the present value of the outstanding lease payments at the

commencement date of the lease using the interest rate implicit in the lease. If the interest rate implicit in the

lease cannot be determined the incremental borrowing rate shall be used as the discount rate. The lease

payments include: fixed payments and in-substance fixed payments; if there are lease incentives the relevant

amount of lease incentives shall be deducted; variable lease payments depending on an index or a rate; the

exercise price of the option provided that the lessee is reasonably certain that the option will be exercised;

the amount to be paid to exercise the option to terminate the lease if the lease term reflects that the lessee

will exercise the option to terminate the lease; and the amount expected to be payable based on the residual

value of the security provided by the lessee. The interest expense of the lease liability in each period of the

lease term shall be calculated in accordance with the fixed periodic interest rate and recorded into the profit

or loss of the current period. The variable lease payment not included in the measurement of lease liabilities

shall be recorded into the current profit or loss when actually incurred.Short-term leases

A short-term lease is a lease that at the commencement date has a lease term of 12 months or less except

for a lease that contains a purchase option.The Group records the lease payment amount of short-term lease into the cost of relevant assets or current

profit or loss in each period of the lease term according to the straight-line method

Leases of Low-value assets

Leases of low value assets refer to lease of a single leased asset whose value is less than RMB40000 when

it is a brand-new asset.The Group includes the lease payment of the low-value asset lease into the cost of the relevant asset or current

profit or loss in each period of the lease term according to the straight-line method

For low-value asset leases the Group chooses to apply the above simplified treatment depending on the

specific circumstances of each lease.Lease modifications

182A lessee shall account for a lease modification as a separate lease if both: (i) the lease modifies the scope of

the lease by adding the right to use one or more underlying assets; and (ii) the increase in consideration must

be commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that

stand-alone price to reflect the circumstances of the particular contract.If a lease modification is not accounted for as a separate lease at the effective date of the lease modification

the Group reallocates the consideration in the modified lease redetermines the lease term and remeasures

the present value of lease liability according to the revised lease payments and revised discount rate.If a lease modification results in a reduction in the scope of the lease or a shortening of the lease term the

Group reduces the carrying amount of the right-of-use asset accordingly and recognizes the gain or loss

related to partial termination or full termination of the lease in profit or loss for the current period.If all other lease modifications result in the remeasurement of the lease liabilities the Group makes a

corresponding adjustment to the carrying amount of right-of-use asset.

(3) The Group acts as the lessor

When the Group acts as the lessor the leases that substantially transfer all the risks and rewards related to

the ownership of the assets are recognized as finance leases and other leases other than finance leases are

recognized as operating leases.Finance leases

In the case of finance leases the Group takes the net investments in the lease as the carrying amounts of

finance lease receivables at the commencement date and the net lease investments are the sum of the

unguaranteed residual value and the present value of the lease payments receivable at the commencement

date discounted at the implicit interest rate. The Group as the lessor calculates and recognizes interest

income for each period of the lease term at a fixed periodic rate. The variable lease payments obtained by the

Group as the lessor and not included in the measurement of the net lease investments shall be recorded into

the current profit or loss when actually incurred.The derecognition and impairment of finance lease receivable shall be accounted for in accordance with the

provisions of Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of

Financial Instruments and Accounting Standards for Business Enterprises No. 23 - Transfer of Financial

Assets.Operating lease

For the rent in the operating lease the Group shall recognize the profit or loss of the current period in

accordance with the straight-line method during each period of the lease term. The initial direct costs incurred

in connection with the operating lease shall be capitalized allocated on the same basis as the recognition of

rental income during the lease term and recorded into the current profit or loss in installments. The variable

lease payments obtained in connection with the operating lease and not included in the lease payments shall

be recorded into the current profit or loss when actually incurred.Lease modifications

The Group treats it as a new lease for accounting treatment from the effective date of the modification and

the amount of lease payments received in advance or receivable related to the lease before the modification

will be regarded as the amount of new lease payments.The Group treats the finance lease modification as a separate lease if the following conditions are met: (i) the

modification increases the scope of the lease by adding the right to use one or more underlying assets; and

(ii) the consideration for the lease increases by an amount commensurate with the stand-alone price for the

increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of

the contract.If the finance lease modification is not accounted for as a separate lease the Group will deal with the modified

183lease under the following circumstances: (i) If the modification takes effect on the commencement date of

the lease the lease will be classified as an operating lease and the Group will treat it as a new lease from the

effective date of the lease modification and take the net investment in lease before the effective date of the

lease modification as the carrying amount of the leased asset; (ii) If the modification takes effect on the

commencement date of the lease the lease will be classified as a finance lease and the Group will conduct

accounting treatment in accordance with the provisions of the Accounting Standards for Business Enterprises

No. 22 - Recognition and Measurement of Financial Instruments concerning the modification or

renegotiation of the contract.

(4) Subleases

When the Group acts as a sublease lessor it classifies the sublease based on the right-of-use assets generated

from the original lease. If the original lease is a short-term lease and the Group uses the simplified method

to account for the original lease the sublease shall be classified as an operating lease.

34. Right-of-use assets

(1) Criteria for recognition of right-of-use assets

A right-of-use asset represents the right of the Group as a lessee to utilize the leased assets over the duration

of an agreed-upon lease term.On the commencement date the right-of-use assets shall be initially measured at cost. The cost includes: the

initial measurement of the lease liability; for the amount of lease payments paid on or before the

commencement date of the lease term if there is a lease incentive the relevant amount of lease incentive

already enjoyed will be deducted; initial direct costs incurred by the Group as the lessee; the costs which the

Group as the lessee expects to incur in dismantling and removing the leased assets restoring the premises

on which the leased assets are located or restoring the leased assets to the state agreed in the lease terms. The

Group as the lessee shall recognize and measure the costs of demolition and restoration in accordance with

the Accounting Standards for Business Enterprises No.13- Contingencies. Subsequent adjustments are made

for any remeasurement of the lease liability.

(2) Depreciation method of the right-of-use assets

The Group uses the straight line method of depreciation. Where the Group as the lessee can reasonably

determine that it obtains the ownership of the leased assets upon expiration of the lease term depreciation

shall be accrued over the remaining useful life of the leased assets. If the lessee cannot reasonably determine

that it will obtain ownership of the leased asset by the end of the lease term depreciation shall be charged

over the shorter of the lease term and the remaining useful life of the leased asset.

(3) See Note III. 23 for the impairment test method of the right-of-use assets and the method for impairment

provision.

35. Safety production expenses

In accordance with the relevant regulations the Group accrues safety production expenses at the rate of 1.00%

of the operating income from general freight business in the previous year.When safety production expenses are accrued they are charged to the cost of relevant products or profit or

loss for the current period and are recorded in the special reserve.When the accrued safety production expenses are used within the prescribed scope if they are of an expense

nature they directly reduce special reserve. For those that form fixed assets the expenditures incurred are

first capitalized in construction in progress and transferred to fixed assets upon completion and reaching its

state of intended use. Simultaneously the cost of the fixed assets is deducted from special reserve and

accumulated depreciation of the same amount is recognized. Such fixed assets shall not be depreciated in

subsequent periods.

36. Repurchase shares

184When the Group repurchase its own shares those shares are treated as treasury stock before they are cancelled

or transferred. All the expenditures relating to the repurchased shares are recorded as the cost of treasury

stock. The consideration and transaction costs paid in share repurchase reduce the shareholders' equity. No

profit or loss is recognized when repurchasing transferring or canceling the Group's shares.When the treasury stock is transferred the difference between the actual amount received and the carrying

amount of treasury stock is recognized in capital reserve. Any excess is recognized in surplus reserve and

retained earnings. When the treasury stock is cancelled the share capital should be reduced to the extent of

the total par value and the number of shares cancelled. The difference between the carrying amount and par

value of the treasure stock cancelled is recognized in capital reserve. Any excess is recognized in surplus

reserve and retained earnings.

37. Hedge accounting

At the inception of a hedging relationship the Group formally designates the hedging instrument and the

hedged item and documents in writing the hedging relationship risk management strategy and risk

management objective The documentation includes identification of the hedging instrument the hedged item

the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets

the hedge effectiveness requirements.The Group assesses on an ongoing basis whether the hedging relationship meets the hedge effectiveness

requirements for the accounting periods during which it is designated. If it fails to meet those requirements

the Group shall discontinue hedge accounting. The following hedge effectiveness requirements must be met

to apply hedge accounting:

* There is an economic relationship between the hedged item and the hedging instrument.* The effect of credit risk does not dominate the value changes that result from that economic relationship

between hedged items and hedging instruments.* The hedge ratio of the hedging relationship shall be the same as that resulting from the quantity of hedged

items that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses

to hedge that quantity of hedged item. However that designation shall not reflect an imbalance between the

weightings of the hedged item and the hedging instrument that would create hedge ineffectiveness and may

result in an accounting outcome inconsistent with the purpose of hedge accounting.The Group shall discontinue hedge accounting if one of the following conditions is met:

* The hedging relationship no longer meets the risk management objectives due to a changes in risk

management objective.* The hedging instrument has expired or has been sold terminated or exercised.* The economic relationship between the hedged item and the hedging instrument no longer exists or the

effect of credit risk dominates the value changes resulting from that economic relationship.* The hedging relationship no longer satisfies the other conditions for applying hedge accounting.Fair value hedge

A fair value hedge is a hedge of the exposure to changes in fair value of a recognized asset or liability or an

unrecognized firm commitment or a component of any such item that is attributable to a particular risk and

could affect the entity’s profit or loss or other comprehensive income.Any gain or loss arising from fair value hedge shall be recognized in profit or loss for the current period.Gain or loss of hedged item arising from the hedged risk exposure shall be recognized in profit or loss for

the current period and shall adjust the carrying amount of the recognized hedged items that is not measure

at fair value.

185If the hedged item is a financial instrument (or a component thereof) measured at amortized cost the

adjustment to the carrying amount of the hedged item shall be amortized to profit or loss. The amortization

shall be based on a recalculated effective interest rate at the date that amortization begins.If a firm commitment (or a component thereof) that is not recognized is designated as a hedged item the

cumulative change in the fair value of the hedged item arising from the hedged risk subsequent to designation

is recognized as an asset or a liability with corresponding gains or losses recognized in profit or loss in the

relevant periods. When the firm commitment is fulfilled and an asset or liability is recognized the initial

measurement of that asset or liability is adjusted to include the cumulative change in the fair value of the

hedged item previously recognized.Cash flow hedge

A cash flow hedge refers to a hedge of the exposure to variability in cash flows that is attributable to a

particular risk associated with a recognized asset or liability a highly probable forecast transaction or a

component of any such item and could affect the entity’s profit or loss.The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is

recognized in other comprehensive income as cash flow hedge reserve. The ineffective portion (i.e. the

remaining gain or loss after deducting the amount recognized in other comprehensive income) is recognized

in profit or loss.For a cash flow hedge if the hedged item is a forecast transaction that subsequently results in the recognition

of a non-financial asset or a non-financial liability or a hedged forecast transaction for a non-financial asset

or a non-financial liability becomes a firm commitment to which fair value hedge accounting is applied the

Group shall remove the amount previously recognized in the cash flow hedge reserve from equity and include

it directly in the initial measurement of such asset or liability.For cash flow hedges that do not fall into the above categories the Group reclassifies the amount previously

recognized in the cash flow hedge reserve from equity to profit or loss in the same period or periods during

which the hedged expected cash flows affect profit or loss.If the amount accumulated in the cash flow hedge reserve for a particular cash flow hedge is a loss and the

Group expects that all or a portion of that loss will not be recovered in future periods then it immediately

reclassifies to profit or loss the amount that is not expected to be recovered

When the Group discontinues hedge accounting for a cash flow hedge if the hedged future cash flows are

still expected to occur the cumulative amount of the cash flow hedge reserve recognized in other

comprehensive income shall remain in the cash flow hedge reserve until the expected transaction actually

occurs and is then treated in accordance with the above-mentioned accounting policies for cash flow hedges.If the hedged future cash flows are no longer expected to occur the cumulative amount of the cash flow

hedge reserve recognized in other comprehensive income shall be reclassified to profit or loss. If the hedged

future cash flows are no longer highly probable but may still be expected to occur the cumulative amount of

the cash flow hedge reserve recognized in other comprehensive income shall be retained until the expected

transaction actually occurs and is then treated in accordance with the above-mentioned accounting policies

for cash flow hedges.

38. Significant accounting judgments and estimates

The Group assesses the significant accounting estimates and key assumptions on an ongoing basis based on

the historical experience and other factors including reasonable expectation of future events. It is probable

that the significant adjustment risk to the carrying amount of assets and liability in the next accounting period

will arise from the following significant accounting judgments and key assumptions:

Measurement of expected credit losses on accounts receivable

The Group calculates the expected credit loss of accounts receivable through the default risk exposure of

accounts receivable and the expected credit loss rate of accounts receivable. The Group determines the

186expected credit loss rate based on the probability and loss rate of default. When determining the expected

credit loss rate the Group uses internal historical credit loss experience and other data and adjusts the

historical data in conjunction with current conditions and forward-looking information. When considering

forward-looking information the indicators used by the Group include the risk of economic downturn

changes in the external market environment technological environment and customer situation. The Group

regularly monitors and reviews assumptions related to the calculation of expected credit losses.Impairment of goodwill

The Group assesses the impairment of goodwill at least once a year. The Group shall evaluate the value in

use for the cash-generating units to which goodwill has been allocated. When assessing the value in use the

Group requires to estimate the expected future cash flows from the cash-generating unit and select an

appropriate discount rate to calculate the present value.Deferred tax asset

To the extent that there is likely that there will be sufficient profits to offset losses deferred tax assets should

be recognized for all unutilized tax losses. The management requires using many judgments to estimate the

time and amount of future taxable profits in conjunction with tax planning strategies to determine the

amount of deferred tax assets that should be recognized.

39. Changes in significant accounting policies accounting estimates

(1) Changes in significant accounting policies

There were no significant changes in the Company's accounting policies during the year.

(2) Changes in significant accounting estimates

There were no significant changes in the Company’s accounting estimates during the year.IV. Taxation

1. Main types of taxes and corresponding tax rates

Tax Tax base Statutory tax rate

Taxable value-added amount (the taxable amount is

Value-added tax calculated based on the balance of taxable sales Tax exemption

(VAT) multiplied by the applicable tax rate after deducting the 3% 5% 6% 9%

allowable input tax for the current period) 10% 13%

Urban maintenance

and construction tax Turnover tax paid 1% 5% 7%

On an ad valorem basis 1.2% of the residual value after

Property tax deducting 30% from the original value of the property; 1.2% 12%

On a rental basis 12% of the rental income

Corporate income tax Taxable income Please refer to Note IV.1

Note: Except for the following tax entities that are subjected to different corporate income tax rates all other

taxpayers within the scope of consolidation are subject to a corporate income tax rate of 25%.Taxpayer Income tax rate (%)

Guangdong Haid Group Co. Ltd. 15.00

Yangjiang Yangdong Fengwo Agriculture and Animal Husbandry Co. Ltd. 20.00

Gaozhou Sanhe Animal Husbandry Co. Ltd. 20.00

Shandong Yitun Ecological Agriculture Co. Ltd. 20.00

187Taxpayer Income tax rate (%)

Guizhou Yixin Seed Industry Technology Co. Ltd. 20.00

Hunan Yixin Pig Breeding Co. Ltd. 20.00

Qinzhou Qinnan Yitun Ecological Agriculture Co. Ltd. 20.00

Yingde Yitun Pig Breeding Co. Ltd. 20.00

Youxian Yitun Ecological Agriculture Co. Ltd. 20.00

Wengyuan Yitun Pig Breeding Co. Ltd. 20.00

Guiyang Yitun Ecological Agriculture Co. Ltd. 20.00

Weifang Yitun Ecological Agriculture Co. Ltd. 20.00

Hengyang Jisheng Agriculture and Animal Husbandry Development Co. Ltd. 20.00

Ji'an Yitun Ecological Agriculture Co. Ltd. 20.00

Qingdao Daxin Yitun Ecological Agriculture Co. Ltd. 20.00

Shaoguan Zhenjiang Yixian Food Co. Ltd. 20.00

Guangdong Yitun Supply Chain Management Co. Ltd. 15.00

Guangzhou Xitun Agricultural Investment Co. Ltd. 20.00

Hunan Xitun Ecological Agriculture Co. Ltd. 20.00

Guangdong Xitun Ecological Agriculture Co. Ltd. 20.00

Guangxi Xitun Ecological Agriculture Co. Ltd. 20.00

Anhui Xitun Ecological Agriculture Co. Ltd. 20.00

Hubei Xitun Ecological Agriculture Co. Ltd. 20.00

Binchuan Yitun Ecological Agriculture Co. Ltd. 20.00

Shicheng Yitun Ecological Agriculture Co. Ltd. 20.00

Mianyang Yitun Ecological Agriculture Co. Ltd. 20.00

Suqian Yitun Ecological Agriculture Co. Ltd. 20.00

Guangzhou Peiqi Investment Co. Ltd. 20.00

Qinzhou Peiqi Breeding Services Co. Ltd. 20.00

Yantai Peiqi Breeding Services Co. Ltd. 20.00

Guangzhou Haiyue Agriculture and Animal Husbandry Co. Ltd. 20.00

Qujing Haiyue Ecological Agriculture Co. Ltd. 20.00

Hunan Haiyue Ecological Agriculture Co. Ltd. 20.00

Hebei Haiyue Agriculture and Animal Husbandry Co. Ltd. 20.00

Guangdong Hinter Biotechnology Group Co. Ltd. 15.00

Guangzhou Haishengyuan Biotechnology Co. Ltd. 20.00

Zhuhai Haiyiyuan Supply Chain Management Co. Ltd. 20.00

Yangling Haid Feed Co. Ltd. 20.00

Gansu Haid Feed Co. Ltd. 15.00

Weinan Haid Feed Co. Ltd. 20.00

Wuwei Haid Feed Co. Ltd. 20.00

Anyang Haiyue Feed Technology Co. Ltd. 20.00

Wuhan Zeyi Investment Co. Ltd. 20.00

188Taxpayer Income tax rate (%)

Qingyuan Haibei Biotechnology Co. Ltd. 15.00

Chengdu Haid Biotechnology Co. Ltd. 15.00

Guangxi Haid Feed Co. Ltd. 15.00

KINGHILL HOLDINGS PTE.LTD. 17.00

KINGHILL PTE.LTD. 17.00

Haid Egypt Co. Ltd. 22.50

Haid Egypt Aquatic Co. Ltd 22.50

HAIDA AGRICULTURAL AND TECHNOLOGY NIGERIA LIMITED 30.00

Haid 3 Egypt Technology Co Ltd 22.50

HAI HANG International Trade Nigeria Co. Ltd. 30.00

Tanzania Haid Company Limited 30.00

KINGHILL RESOURCES PTE.LTD. 17.00

VINH LONG HAILIANKE Biotechnology CO. LTD Tax-exempt

KINGHILL AGRI PTE.LTD. 17.00

PT.HAIDA AGRICULTURE INDONESIA 22.00

PT.HAIDA SURABAYA TRADING 22.00

PT HISENOR TECHNOLOGY INDONESIA 22.00

HAID FEED BANGLADESH LIMITED 27.50

PT HAIDA Biotechnology INDONESIA 22.00

Dachuan Biotechnology Co. Ltd. 27.50

PT HISENOR GENETICS INDONESIA 22.00

PT.HAILIANK TECHNOLOGY INDONESIA 22.00

HAID AGRICULTURAL TECHNOLOGY MYANMAR COMPANY LIMITED 22.00

Haid technology (Thailand) Co. LTD 20.00

LAOS HAID COMPANY LIMITED Tax-exempt

PT Ocean Dragon Indonesia 22.00

Hisenor Aquatic Seed Industry Technology Pte.Ltd. 17.00

HISENOR (ECUADOR) CIA. LTDA. 22.00

HISENOR BIO TECH (M) SDN. BHD. 24.00

PT BIBIT UNGGUL 22.00

KINGHILL INVESTMENT (SINGAPORE) PTE.LTD. 17.00

KINGHILL INTERNATIONAL (SINGAPORE) PTE.LTD. 17.00

PT. APEX POULTRY BREEDING 22.00

HAID DO BRASIL LTDA 15.00

Zhuhai Hisenor Aquatic Seed Industry Technology Co. Ltd. 15.00

Huizhou Haizenong Marine Biotechnology Co. Ltd. 20.00

Guangzhou Haizehui Fishery Development Co. Ltd. 20.00

Zhaoqing Haizehui Fishery Development Co. Ltd. 20.00

Guangzhou Nansha Haishengyuan Aquaculture Technology Co. Ltd. 20.00

189Taxpayer Income tax rate (%)

Shanwei Haizenong Marine Biotechnology Co. Ltd. 20.00

Yongji Haijingzhou Fishery Technology Co. Ltd. 20.00

Jingtai Haijingzhou Fishery Technology Co. Ltd. 20.00

Shanwei Haizexin Marine Biotechnology Co. Ltd. 20.00

Huizhou Haizexin Marine Biotechnology Co. Ltd. 20.00

Yingkou Haizehui Seed Industry Technology Co. Ltd. 20.00

Liuzhou Haizehui Fishery Technology Co. Ltd. 20.00

Qingyuan Haizehui Fishery Technology Co. Ltd. 20.00

Raoping Haizexin Marine Biotechnology Co. Ltd. 20.00

Zhejiang Hisenor Marine Biotechnology Co. Ltd. 20.00

Jiangmen Haizenong Marine Biotechnology Co. Ltd. 20.00

Zhejiang Lanke Seed Industry Technology Co. Ltd. 20.00

Shanwei Haizenong Gene Technology Co. Ltd. 20.00

Yingkou Haishengyuan Biotechnology Co. Ltd. 20.00

Shanwei Haizehui Marine Biotechnology Co. Ltd. 20.00

Beihai Haizenong Seed Industry Technology Co. Ltd. 20.00

Jiangsu Haizehui Seed Industry Technology Co. Ltd. 20.00

Dongying Hailing Fresh Aquatic Food Co. Ltd. 20.00

Yangxin Bairong Aquatic Seed Co. Ltd. 20.00

Jingzhou Bairong Aquatic Seed Co. Ltd. 20.00

Shandong Bairong Aquatic Seed Co. Ltd. 20.00

Hainan Bairong Aquatic Seed Co. Ltd. 20.00

Zhaoqing Baishengyuan Aquatic Seed Co. Ltd. 20.00

Guangdong Baishengyuan Aquatic Seed Co. Ltd. 20.00

Zhaoqing Bairong Seed Industry Technology Co. Ltd. 20.00

Hainan Haizexin Marine Biotechnology Co. Ltd. 20.00

Rongcheng Yandunjiao Feed Co. Ltd. 20.00

Zhenyuan Haisheng Protein Feed Co. Ltd. 20.00

Haid Supply Chain Management (Zhuhai) Co. Ltd. 15.00

HAID INTERNATIONAL (SINGAPORE) PTE. LTD. 17.00

Sanya Fengmu Agricultural Development Co. Ltd. 20.00

Guizhou Delian Zhiyun Network Technology Co. Ltd. 20.00

Dandong Haiyufeng Agricultural Development Co. Ltd. 20.00

Ezhou Haifeng Ecological Agriculture Co. Ltd. 20.00

Nantong Fengmu Trading Co. Ltd. 20.00

Sichuan Haimufeng Agriculture Co. Ltd. 20.00

Hailet (Zhengzhou) Biotechnology Co. Ltd. 20.00

Rongcheng Haihesheng Marine Biotechnology Co. Ltd. 20.00

Beijing Haichengyuan Feed Technology Co. Ltd. 20.00

190Taxpayer Income tax rate (%)

Guangzhou Haishun Supply Chain Management Co. Ltd. 20.00

Haid Supply Chain Management (Guangzhou) Co. Ltd. 20.00

Guizhou Haipin Chemical Co. Ltd. 20.00

Haid International Group Limited 8.25 16.50 Tax-exempt

China Haida Feed Group (HK) Limited 16.50 Tax-exempt

Rickworth Investments Limited Tax-exempt

Hong Kong Longreat Trading Co. Limited 16.50 Tax-exempt

HAID FEED COMPANY LIMITED 15.00

DONG NAI HAID FARM COMPANY LIMITED 15.00

Haid International Holdings Limited Tax-exempt

Haidea Holdings Pte.Ltd. 17.00

LANKING RICKWORTH PTE.LTD. 17.00

HAID Biotechnology INDUSTRY (SINGAPORE) PTE. LTD. 17.00

Guangzhou Haituoer Consulting Co. Ltd. 20.00

PANASIA TRADING RESOURCES LIMITED Tax-exempt

SHENG LONG INTERNATIONAL LTD. Tax-exempt

SHENG LONG BIO-TECH INTERNATIONAL CO. LTD 10 15 17 20 Tax-exempt

SHENG LONG BIOTECH (HAI DUONG) INTERNATIONAL CO. LTD 20 Tax-exempt

SHENG LONG BIO-TECH(TIEN GIANG) INTERNATIONAL CO. LTD 15.00

LONG SHENG INTERNATIONAL CO. LTD 15.00 20.00

Long Sheng International (Suoi Dau) Co. Ltd 10.00

Hisenor International Limited Tax-exempt

KEMBANG SUBUR INTERNATIONAL LTD. 24.00

NAMDUONG VIETNAM AQUATIC HATCHERY CO. LTD. Tax-exempt

SHENG LONG BIO TECH(M)SDN.BHD. 24.00

SHENG LONG AQUA TECHNOLOGY (M) SDN. BHD. 24.00

THANG LONG(VINH LONG)BIOTECH CO. LTD. 20.00 Tax-exempt

Haihua Bio-Tech（Hong Kong）Limited 16.50

Haid International Biofarms Pte.Ltd. 17.00

Guigang Haid Feed Co. Ltd. 15.00

Yunnan Haid Biotechnology Co. Ltd. 15.00

Guangdong Mutai Biotechnology Co. Ltd. 15.00

Zhaoqing Haid Feed Co. Ltd. 20.00

Wuhan Shuijiyuan Biotechnology Co. Ltd. 20.00

LANKING PTE.LTD. 17.00

Haid Lanking International Trading Inc. Note

LANKING NEMO(SG) PTE.LTD. 17.00

191Taxpayer Income tax rate (%)

Lanking Nano PTE.LTD. 17.00

HAI DUONG HAID COMPANY LIMITED 15.00 20.00

HAI DAI COMPANY LIMITED 15.00

VINH LONG HAI DAI CO. LTD. 5.00 20.00

BINH DINH HAI LONG CO. LTD. 20.00 Tax-exempt

HISTAR VIETNAM AQUATIC BREEDING COMPANY LIMITED 20.00

BINH PHUOC HAI LONG COMPANY LIMITED Tax-exempt

MEKONG HAI LONG COMPANY LIMITED 10.00

CAMBODIAN HAIDA AGRICULTURE AND ANIMAL HUSBANDRY 1.00 20.00 Tax-

TECHNOLOGY CO. LTD. exempt

Guangzhou Changsheng Logistics Co. Ltd. 20.00

Guangdong Haid Pet Co. Ltd. 20.00

Haid Pet Food (Weihai) Co. Ltd. 20.00

Liaocheng Haiding Feed Co. Ltd. 20.00

Liaocheng Haiding Veterinary Services Co. Ltd. 20.00

Yucheng Haiding Agriculture and Animal Husbandry Co. Ltd. 20.00

Danxian Haiding Veterinary Services Co. Ltd. 20.00

Xinxiang Haiding Feed Co. Ltd. 20.00

Xinxiang Hairuida Feed Co. Ltd. 20.00

Heze Haiding Feed Technology Co. Ltd. 15.00

Heze Dingxin Veterinary Services Co. Ltd. 20.00

Jining Sishui Dingxin Veterinary Services Co. Ltd. 20.00

Jinan Fengcheng Agriculture and Animal Husbandry Co. Ltd. 20.00

Tengzhou Fengcheng Feed Co. Ltd. 20.00

Heze Haiding Ecological Breeding Co. Ltd. 20.00

Liaocheng Haixin Enterprise Management Consulting Co. Ltd. 20.00

Junan Haiding Feed Co. Ltd. 20.00

Sihong Haiding Feed Co. Ltd. 20.00

Linyi Dingxin Breeding Co. Ltd. 20.00

Linyi Haiding Veterinary Services Co. Ltd. 20.00

Linyi Haiding Lusheng Feed Co. Ltd. 20.00

Qinggang Fengcheng Baizun Feed Co. Ltd. 20.00

Suihua Fengcheng Baizun Feed Co. Ltd. 20.00

Chengwu Fengcheng Feed Co. Ltd. 20.00

Weifang Binhai Haiding Feed Co. Ltd. 20.00

Dongying Dinghao Breeding Co. Ltd. 20.00

Xuzhou Hairuida Feed Co. Ltd. 20.00

Linyi Haiding Biological Feed Co. Ltd. 20.00

Jiangsu Fengcheng Technology Co. Ltd. 20.00

192Taxpayer Income tax rate (%)

Qingdao Dinghao Fengying International Trade Co. Ltd. 20.00

Liaocheng Fengcheng Feed Co. Ltd. 20.00

HAID GROUP HAIDING AGRICULTURE AND ANIMAL HUSBANDRY

KAZAKHSTAN CO. Ltd. 20.00

Zhuhai Fengcheng Supply Chain Management Co. Ltd. 15.00

Dalian Haiding Jinyifeng Feed Co. Ltd. 20.00

Yingkou Dachuan Feed Technology Co. Ltd. 20.00

Zoucheng Haiyue Enterprise Management Consulting Co. Ltd 20.00

Yinan Haiyue Biotechnology Co. Ltd. 20.00

Dezhou Haiying Food Co. Ltd. 20.00

Yancheng Haid Biological Feed Co. Ltd. 20.00

Guangzhou Heshengtang Biotechnology Co. Ltd. 20.00

Henan Haihe Agriculture and Animal Husbandry Technology Co. Ltd. 20.00

Hexin Technology (Henan) Co. Ltd. 20.00

Guangdong Hairuite Supply Chain Management Co. Ltd. 15.00

Hunan Innovation Biotechnology Co. Ltd. 15.00

Guangdong Shunde Haid Biotechnology Co. Ltd. 20.00

Shijiazhuang Vike Biotechnology Co. Ltd. 15.00

Shenyang Haid Feed Co. Ltd. 20.00

Jiangsu Haihe Agriculture and Animal Husbandry Co. Ltd. 20.00

Xuzhou Haihe Feed Co. Ltd. 20.00

Xuzhou Haid Hexin Feed Co. Ltd. 20.00

Anshan Dachuan Feed Technology Co. Ltd. 20.00

Ganzhou Haid Biotechnology Co. Ltd. 15.00

Guangzhou Punong Investment Management Co. Ltd. 20.00

Guangzhou Yuannong Investment Management Co. Ltd. 20.00

Zhongshan Yugezi Food Co. Ltd. 20.00

Foshan Rongda Aquatic Seed Co. Ltd. 20.00

Foshan Ronghai Seed Technology Co. Ltd. 20.00

Zhongshan Rongda Aquatic Seedling Co. Ltd. 20.00

Weifang Daxin Feed Co. Ltd. 20.00

Qingdao Huaxin Feed Co. Ltd. 20.00

Yantai Daxin Agriculture and Animal Husbandry Development Co. Ltd. 20.00

Hunan Jinhuilong Technology Co. Ltd. 15.00

Yueyang Jinhuilong Biotechnology Co. Ltd. 20.00

Shijiazhuang Huilong Feed Co. Ltd. 20.00

Handan Huilong Feed Co. Ltd. 20.00

Huai'an Huilong Feed Co. Ltd. 20.00

Zhuhai Dachuan Biotechnology Co. Ltd. 20.00

Guangzhou Mingersi Biotechnology Co. Ltd. 20.00

193Taxpayer Income tax rate (%)

Zhanjiang Rongda Feed Co. Ltd. 20.00

Guangzhou Ronghai Breeding Technology Co. Ltd. 20.00

Yichang Zhihai Agriculture and Animal Husbandry Co. Ltd. 20.00

Mianyang Zhonggui Feed Co. Ltd. 20.00

Dali Haiwang Feed Co. Ltd. 20.00

Yunnan Zhonggui Feed Co. Ltd. 20.00

Chongqing Zhihai Feed Co. Ltd. 20.00

Guiyang Haid Zhihai Feed Co. Ltd. 20.00

Qujing Zhihai Feed Co. Ltd. 20.00

Yibin Zhihai Feed Co. Ltd. 20.00

Meishan Haid Zhihai Feed Co. Ltd. 20.00

Guangzhou Haiyin Financing Guarantee Co. Ltd. 15.00

Qinzhou Hailong Feed Co. Ltd. 15.00

Liuzhou Haid Feed Co. Ltd. 20.00

Hainan Haid Aquatic Seed Industry Development Co. Ltd. 20.00

Mianyang Hailong Feed Co. Ltd. 20.00

Guangzhou Nongzhidao Feed Co. Ltd. 20.00

Yancheng Runchuan Agricultural Technology Co. Ltd. 20.00

Jiangxi Gunan Herbal Technology Collaborative Innovation Co. Ltd. 20.00

Jiangxi Renxintang Biotechnology Co. Ltd. 20.00

Guangxi Rongchuan Feed Co. Ltd. 20.00

Ganzhou Lianduoli Feed Technology Co. Ltd. 15.00

Maoming Haiwei Feed Co. Ltd. 20.00

Qinzhou Haiwei Feed Co. Ltd. 15.00

Nanning Dachuan Biotechnology Co. Ltd. 15.00

Yongzhou Haid Biotechnology Co. Ltd. 20.00

Guilin Haid Biotechnology Co. Ltd. 20.00

Guiyang Dachuan Biotechnology Co. Ltd. 20.00

Guangdong Haifulai Biotechnology Co. Ltd. 20.00

Qingyuan Hailier Biotechnology Co. Ltd. 20.00

Guangdong Haiqi Investment Co. Ltd. 20.00

Heze Haibo Youmei Technical Services Co. Ltd. 20.00

Hubei Haiqi Technical Services Co. Ltd. 20.00

Guangzhou Haiqi Technology Co. Ltd. 20.00

Meizhou Haiqi Technology Co. Ltd. 20.00

Zhangzhou Haiqi Veterinary Medicine Co. Ltd. 20.00

Maoming Haiqi Technology Co. Ltd. 20.00

Yangjiang Haiqi Technology Co. Ltd. 20.00

Qingyuan Haiqi Technology Co. Ltd. 20.00

194Taxpayer Income tax rate (%)

Gansu Muqi Agricultural Technology Co. Ltd. 20.00

Raoping Haide Biotechnology Co. Ltd. 20.00

Yulin Haiqi Biotechnology Co. Ltd. 20.00

Qinzhou Pubei Haiqi Biotechnology Co. Ltd. 20.00

Xingtai Haiqi Breeding Technology Services Co. Ltd. 20.00

Suixi Haihe Veterinary Medicine Co. Ltd. 20.00

Yangchun Haihe Veterinary Medicine Co. Ltd. 20.00

Luoding Haihe Veterinary Medicine Co. Ltd. 20.00

Yangling Haiqi Agricultural Technology Co. Ltd. 20.00

Yangling Huashite Testing Technology Co. Ltd. 20.00

Bobai Haihe Veterinary Medicine Co. Ltd. 20.00

Jiangmen Haiqi Technology Co. Ltd. 20.00

Xishui Haiqi Technical Services Co. Ltd. 20.00

Jingshan Haiqi Technical Services Co. Ltd. 20.00

Huaihua Haiqi Technical Services Co. Ltd. 20.00

Jieshou Haiqi Technical Services Co. Ltd. 20.00

Kunming Haiqi Technical Services Co. Ltd. 20.00

Mianyang Haiqi Breeding Technology Co. Ltd. 20.00

Nanchang Haiqi Veterinary Medicine Co. Ltd. 20.00

Sichuan Haiqi Biotechnology Co. Ltd. 20.00

Ya'an Haiqi Breeding Technology Co. Ltd. 20.00

Kaifeng Haiqi Technical Services Co. Ltd. 20.00

Changde Haide Veterinary Medicine Co. Ltd. 20.00

Haile (Luliang) Biotechnology Co. Ltd. 20.00

Jingzhou Haiqi Technical Services Co. Ltd. 20.00

Hengyang Haiqi Technical Services Co. Ltd. 20.00

Yantai Zhizhuxia Breeding Services Co. Ltd. 20.00

Guangzhou Haifeng Breeding Services Co. Ltd. 20.00

Nanning Haililai Biotechnology Co. Ltd. 15.00

Shaoyang Haid Feed Co. Ltd. 20.00

Guangzhou Denong Feed Co. Ltd. 20.00

Foshan Dazhi Biotechnology Co. Ltd. 20.00

Taishan Debao Feed Co. Ltd. 20.00

Shaoguan Dachuan Biotechnology Co. Ltd. 20.00

Guizhou Hailongwang Biotechnology Co. Ltd. 20.00

Guangdong Huashite Testing Technology Co. Ltd. 20.00

Tianjin Haid Biotechnology Co. Ltd. 20.00

Yunnan Hairui Biotechnology Co. Ltd. 20.00

Henan Haid Jiuzhou Biotechnology Co. Ltd. 20.00

195Taxpayer Income tax rate (%)

Chaozhou Haid Biotechnology Co. Ltd. 20.00

Haixin (Tianjin) Biotechnology Co. Ltd. 20.00

Haid Biological (Beijing) Technology Co. Ltd. 20.00

Dalian Haid Biotechnology Co. Ltd. 20.00

Shenzhen Xinlingke Biotechnology Co. Ltd. 20.00

Weifang Haixin Biotechnology Co. Ltd. 20.00

Hubei Haid Seed Industry Technology Co. Ltd. 20.00

Yueyang Haid Biotechnology Co. Ltd. 20.00

Guiyang Haiyue Feed Technology Co. Ltd. 20.00

Chifeng Haid Biotechnology Co. Ltd. 20.00

Huizhou Haid Biotechnology Co. Ltd. 20.00

Guangzhou Hualaike Testing Technology Co. Ltd. 20.00

Huaibei Haid Biological Feed Co. Ltd. 20.00

Guizhou Haid Feed Co. Ltd. 20.00

Pizhou Haid Ruminant Feed Co. Ltd. 20.00

Nanping Haid Biotechnology Co. Ltd. 20.00

Taikun Feed (Tuanfeng) Co. Ltd. 20.00

Quzhou Haid Huilong Biological Feed Co. Ltd 20.00

HAID (ECUADOR) FEED CIA.LTDA. Tax-exempt

Zhuhai Haiyue Agriculture and Animal Husbandry Co. Ltd. 15.00

Qingyuan Haifulai Biotechnology Co. Ltd. 20.00

Guangzhou Haiying Commercial Management Co. Ltd. 20.00

Lishui Haid Huatong Biotechnology Co. Ltd. 20.00

Ningdu Haid Biotechnology Co. Ltd. 20.00

Huai'an Dachuan Feed Co. Ltd. 20.00

Zhuhai Haibei Supply Chain Management Co. Ltd. 15.00

Shenyang Shengkang Biotechnology Services Co. Ltd. 20.00

Heilongjiang Haid Biotechnology Co. Ltd. 20.00

Zhangzhou Dachuan Biotechnology Co. Ltd. 20.00

Dangshan Shengfeng Haid Feed Co. Ltd. 20.00

Hezhou Haid Feed Co. Ltd. 20.00

Nanchong Haid Biotechnology Co. Ltd. 20.00

Zhuhai Dehai Biological Technology Co. Ltd. 15.00

Zhuhai Dewekang Biotechnology Co. Ltd. 20.00

Guangdong Haituo Biotechnology Co. Ltd. 20.00

Chifeng Shengfeng Dachuan Feed Co. Ltd. 20.00

Guangdong Haiyi Investment Co. Ltd. 20.00

Jinhua Haiyi Seed Technology Co. Ltd. 20.00

Sui Ning Haid Biotechnology Co. Ltd. 20.00

196Taxpayer Income tax rate (%)

Nanning Wuming Haid Biotechnology Co. Ltd. 20.00

Yingkou Haid Biotechnology Co. Ltd. 20.00

Dezhou Haiying Animal Husbandry and Technology Co. Ltd. 20.00

Suqian Dachuan Guiliu Feed Co. Ltd. 20.00

Qinzhou Haid Guiliu Biotechnology Co. Ltd. 20.00

Note: As of the end of the current period the subsidiary Haid Lanking International Trading Inc. is subject

to federal corporate income tax at a rate of 21%. In addition for California state tax purposes the applicable

tax rate is 8.84%; however the subsidiary is only required to pay the minimum franchise tax of $800 for the

current period.

2. Tax preferential treatments and approval documents

(1) Value-added tax (VAT)

Pursuant to the Notice on the Exemption of Value-Added Tax on Feed Products issued by the Ministry of

Finance and the State Administration of Taxation (Caihui [2001] No. 121) enterprises are exempt from value-

added tax (VAT) on feed products that fall within the scope of tax-exempt feed products.In accordance with Article 15 of the Interim Regulations of the People's Republic of China on Value-Added

Tax which stipulates that agricultural products produced and sold by agricultural producers are exempt from

value-added tax enterprises are exempt from VAT on the sales of their self-produced agricultural products.In accordance with the provisions of the Notice on the Application of Low VAT Rates and Simplified Methods

for Levying VAT on Certain Goods issued by the Ministry of Finance and the State Administration of

Taxation (CaiShui [2009] No. 9) and the Notice on the Simplification of VAT Collection Rate Policies

(CaiShui [2014] No. 57) sales revenue from self-produced biologics made from microorganisms microbial

metabolites animal toxins human or animal blood or tissues is subject to VAT at a simplified collection rate

of 3%.In accordance with the provisions of the Announcement on Policies for VAT Exemptions and Reductions for

Small-Scale VAT Taxpayers (Announcement No. 1 of 2023 by the Ministry of Finance and the State Taxation

Administration) and the Announcement on Policies for VAT Exemptions and Reductions for Small-Scale

VAT Taxpayers (Announcement No. 19 of 2023 by the Ministry of Finance and the State Taxation

Administration) from January 1 2023 to December 31 2027: VAT is exempted for small-scale VAT

taxpayers with monthly sales of RMB100000 (inclusive) or less for taxable sales revenue subject to a 3%

collection rate VAT is levied at a reduced rate of 1% for prepaid VAT items subject to a 3% pre collection

rate VAT is prepaid at a reduced rate of 1%.In accordance with the provisions of the Announcement on the Extension of VAT Policies for Financing

Guarantees for Farmers Small and Micro Enterprises and Individual Business Households (Announcement

No. 18 of 2023 by the Ministry of Finance and the State Taxation Administration) from August 1 2023 to

December 31 2027: VAT is exempted on guarantee fees earned by taxpayers for providing financing

guarantees for loans and bond issuances to farmers small enterprises micro enterprises and individual

business households VAT is also exempted on re-guarantee fees earned for providing re-guarantees for the

aforementioned financing guarantees (hereinafter referred to as the original guarantees).In accordance with the provisions of the Announcement on Further Supporting Tax Policies for

Entrepreneurship and Employment of Key Groups (Announcement No. 15 of 2023 by the Ministry of Finance

the State Taxation Administration the Ministry of Human Resources and Social Security and the Ministry

of Agriculture and Rural Affairs) from January 1 2023 to December 31 2027: enterprises that hire

individuals who have been lifted out of poverty as well as those who have been registered as unemployed

for more than six months with public employment service institutions of the human resources and social

security departments and hold an Employment and Entrepreneurship Certificate or an Employment and

Unemployment Registration Certificate (noting “Enterprise Tax Absorption Policy”) and who sign a labor

197contract with a term of more than one year and legally pay social insurance premiums shall starting from

the month when the labor contract is signed and social insurance premiums are paid be granted a fixed

deduction for value-added tax (VAT) urban maintenance and construction tax education surcharge local

education surcharge and enterprise income tax based on the actual number of hires for a period of three

years. The fixed deduction amount is RMB6000 per person per year with a maximum increase of 30%. The

people's governments of provinces autonomous regions and municipalities directly under the Central

Government may determine the specific deduction amount within this range according to the actual situation

in their respective regions. The taxable basis for urban maintenance and construction tax education surcharge

and local education surcharge is the VAT payable before enjoying this tax preferential policy.In accordance with the relevant value-added tax (VAT) provisions of the Socialist Republic of Vietnam the

feed and related industries livestock and aquaculture industries and food-grade animal health products

industry are exempt from VAT. Income from agricultural product storage services derived by companies

established in Vietnam is subject to VAT at a rate of 5%.

(2) Corporate income tax

In accordance with the Article 28 of the Enterprise Income Tax Law of People's Republic of China (PRC)

the enterprise income tax shall be levied at a reduced rate of 20% for eligible small and low-profit enterprises;

The enterprise income tax will be levied at the reduced rate of 15% for high-tech enterprises that the state

needs to give priority support. If the Company and its subsidiaries meet the above conditions the enterprise

income tax shall be levied at preferential tax rates.In accordance with the Announcement on Taxation on Further Implementing the Preferential Income Tax

Policy for Small and Micro Enterprises CaiShui [2023] No.12 issued by the Ministry of Finance State

Taxation Administration the taxable income of small and micro-profit enterprises is reduced by 25% and

levying corporate income tax at a rate of 20% will continue to be implemented until December 31 2027.In accordance with Article 27 of the Corporate Income Tax Law of the People’s Republic of China and Article

86 of the Regulation on the Implementation of the Corporate Income Tax Law of the People’s Republic of

China income derived from breeding of livestock and poultry is exempted from corporate income tax;

Income derived from marine aquaculture and inland aquaculture by enterprises is subject to a 50% reduction

in corporate income tax. The Company and its subsidiaries which are engaged in the aforementioned income-

generating activities are subject to corporate income tax on such income under preferential policies.In accordance with the Notice on the Scope of Preliminary Processing of Agricultural Products Eligible for

Corporate Income Tax Preferences (Trial) issued by the Ministry of Finance and the State Administration of

Taxation (CaiShui [2008] No. 149) and the Supplementary Notice on the Scope of Preliminary Processing of

Agricultural Products Eligible for Corporate Income Tax Preferences (CaiShui [2011] No. 26) enterprises

are exempt from corporate income tax on the preliminary processed products they produce that fall within

the scope of agricultural product preliminary processing eligible for corporate income tax preferences. The

Company and its subsidiaries which are engaged in the aforementioned income-generating activities those

income is subject to the corporate income tax under these preferential policies.In accordance with the Announcement on the Extension of Corporate Income Tax Policies for the Western

Development Program issued by the Ministry of Finance the State Taxation Administration and the National

Development and Reform Commission (Announcement No. 23 of 2020) from January 1 2021 to December

31 2030 enterprises in the western region engaged in encouraged industries are subject to corporate income

tax at a reduced rate of 15%. The Group’ subsidiaries that are established in the western region as defined in

the announcement and meet the relevant conditions are subject to corporate income tax at a rate of 15%.In accordance with the Notice by the Ministry of Finance and the State Taxation Administration on Corporate

Income Tax Preferential Policies for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (CaiShui

[2022] No. 19) eligible industrial subsidiaries of the Group established in the Guangdong-Macao In-Depth

Cooperation Zone in Hengqin are subject to corporate income tax at a reduced rate of 15%.In accordance with the Notice by the Ministry of Finance and the State Taxation Administration on Corporate

Income Tax Preferential Policies for Guangzhou Nansha (CaiShui [2022] No. 40) the Group’s eligible

198subsidiaries engaged in encouraged industries and established in the Nansha pilot zone enjoy a reduced

corporate income tax of 15%.In accordance with the Notice on Corporate Income Tax Preferential Policies for Hainan Free Trade Port

issued by the Ministry of Finance and the State Taxation Administration (CaiShui [2020] No. 31) and the

Notice on the Extension of Corporate Income Tax Preferential Policies for Hainan Free Trade Port (CaiShui

[2025] No. 3) from January 1 2020 to December 31 2027 enterprises engaged in encouraged industries

that are registered in the Hainan Free Trade Port and operate substantially are subject to corporate income

tax at a reduced rate of 15%. Subsidiaries of the Group that are established within the scope of the

aforementioned policy and meet the relevant conditions are subject to corporate income tax at a rate of 15%.In accordance with the Announcement on Further Improving the Pre-tax Super-deduction Policy for Research

and Development Expenses issued by the Ministry of Finance and the State Taxation Administration

(Announcement No. 7 of 2023) for R&D expenses actually incurred by enterprises in carrying out R&D

activities that have not been capitalized as intangible assets but are recognized in profit or loss for the current

period on the basis of the actual deduction as stipulated an additional super-deduction of 100% of the actual

amount incurred shall be made for pre-tax purposes from January 1 2023. Where they become intangible

assets the expenses shall be amortized before tax at 200% of the cost of the intangible assets from January

12023.

In accordance with the Announcement on the Extension of Tax Preferential Policies for Microfinance

Companies issued by the Ministry of Finance and the State Taxation Administration (Announcement No. 54

of 2023) the Group is permitted to deduct the loan loss provisions accrued at 1% of the year-end loan balance

for microfinance companies approved by the provincial local financial regulatory authorities for corporate

income tax purposes.Under the tax laws of the British Virgin Islands the Group's subsidiaries registered in that jurisdiction are

not subject to corporate income tax.In accordance with the Hong Kong Tax Ordinance the Group's subsidiaries registered in Hong Kong are

subject to profits tax at a rate of 16.50%. Among them offshore income from China Haida Feed Group (HK)

Limited a subsidiary can be exempted from profits tax after declaration. For non-locally registered

subsidiaries whose place of actual operation and management is in Hong Kong which are Hong Kong tax

residents and engaged in qualified treasury activities a preferential tax rate of half the profits tax rate for

treasury center business (8.25%) is applicable for this year. In addition subsidiaries that meet the economic

substance requirements specified in Section 15K of the Inland Revenue Ordinance and have specified

foreign-sourced income are eligible for Tax-exempt in the relevant year.Subsidiaries of the Group registered in Malaysia are subject to a corporate income tax rate of 24% in

accordance with the Malaysian tax law.Subsidiaries of the Group registered in Singapore are subject to a corporate income tax rate of 17% in

accordance with the Singaporean tax law.Under the local tax laws of Ecuador eligible enterprises enjoy a 12-year tax holiday from the issuance date

of the first invoice after which a 25% rate applies. HAID (ECUADOR) FEED CIA. LTDA. a subsidiary of

the Group registered in Ecuador remains in the Tax-exempt period and is exempt from corporate income tax

as of the end of the current year.Under the local tax laws of Indonesia the Group’s subsidiaries registered there are subject to a corporate

income tax at a rate of 22%.Under the local tax laws of Egypt the Group’s subsidiaries registered there are subject to a corporate income

tax at a rate of 22.5%.Under the local tax laws of Bangladesh which feature a multi-tiered tax rate structure the Group's

subsidiaries registered in Bangladesh are subject to corporate income tax at 27.5% which may qualify for a

reduced rate of 25% upon meeting satisfying specific payment requirements.

199Under the local tax laws of India which feature a multi-tiered tax rate structure the Group's subsidiaries

registered in India reported losses as of the end of the current year and are not subject to corporate income

tax.Under the local tax laws of Kazakhstan the Group’s subsidiaries registered there are subject to corporate

income tax at rate of 20%.Under the local tax laws of Nigeria the Group’s subsidiaries registered there are subject to a corporate income

tax at a rate of 30%.Under the local tax laws of Myanmar the Group’s subsidiaries registered there are subject to a corporate

income tax at a rate of 22%.Under the local tax laws of Thailand the Group’s subsidiaries registered there are subject to a corporate

income tax at rate of 20%.Under the polices of the local management committee in Laos the Group’s subsidiaries registered there enjoy

a 5-year tax holiday from the year they first become profitable.Under the local tax laws of Cambodia the Group's subsidiaries registered there enjoy a 6-year tax holiday

on their feed production business from the date of first revenue. Following the tax holiday income tax is

payable at 25% of the full tax liability for the first 2 years at 50% for the next 2 years and at 75% for the

subsequent 2 years. For trading activities income tax is payable at the higher of 1% of revenue or 20% of

profit.Under the local tax laws of Tanzania the Group’s subsidiaries registered there are subject to a corporate

income tax at a rate of 30%.Under the local tax laws of Brazil the Group’s subsidiaries registered there are subject to a corporate income

tax at a rate of 15%.Under the local tax laws of Cayman Islands the Group’s subsidiaries registered there are not subject to

corporate income tax.Under the local tax laws of Vietnam the Group’s subsidiaries registered there are subject to corporate income

tax as follows:

a) Certain regions enjoy a preferential policy of 2-year exemption from corporate income tax from the profit-

making year followed by a 50% reduction for the next 4 years. MEKONG HAI LONG COMPANY

LIMITED became profitable in 2021 VINH LONG HAILIANKE BIOTECHNOLOGY CO. LTD and

SHENG LONG BIOTECH (HAI DUONG) INTERNATIONAL CO. LTD in 2024 and BINH PHUOC HAI

LONG COMPANY LIMITED in 2025.b) Certain regions enjoy a preferential policy of 4-year exemption from corporate income tax from the profit-

making year followed by a 50% reduction for the next 9 years. VINH LONG HAI DAI CO. LTD. became

profitable in 2021 THANG LONG (VINH LONG) BIOTECH CO. LTD. in 2022 and BINH DINH HAI

LONG CO. LTD. in 2023.c) SHENG LONG BIO-TECH INTERNATIONAL CO. LTD. qualifies for Vietnamese government

preferential policies applicable to new investments in disadvantaged areas and industry-specific incentives.Its factories in different regions continue to enjoy their original preferential corporate income tax rates of 10%

and 15%. Income is taxed as follows: cold storage rental income at 10%; raw material sales at 20%; animal

health products at 17%; income from shrimp fry cultivation exempt from corporate income tax; and other

income at 20%.d) Under local income tax policies in Vietnam income from NAMDUONG VIETNAM AQUATIC

HATCHERY CO. LTD. 's shrimp fry cultivation is exempt from corporate income tax.e) Under the corporate income tax policies of Vietnam which vary by region and business type income from

200sales of self-produced feed by LONG SHENG INTERNATIONAL CO. LTD. HAID FEED COMPANY

LIMITED and SHENG LONG BIO-TECH (TIEN GIANG) INTERNATIONAL CO. LTD. is subject to

corporate income tax at 15%; income from aquaculture/farming activities by HAI DAI COMPANY

LIMITED and DONG NAI HAID FARM COMPANY LIMITED is subject to corporate income tax at 15%;

income from agricultural product processing by Long Sheng International (Suoi Dau) Co. Ltd. is subject to

corporate income tax at 10%; income from agricultural product processing by HAI DUONG HAID

COMPANY LIMITED is subject to corporate income tax at 15%; and income from trading activities is

subject to corporate income tax at 20%.

(3) Other taxes

In accordance with the Announcement on Further Supporting the Development of Small and Micro

Enterprises and Individual Business Operators issued by the Ministry of Finance and the State Taxation

Administration (Announcement No. 12 of 2023) from January 1 2023 to December 31 2027 the following

taxes and fees are reduced by 50% for small-scale VAT taxpayers small and low-profit enterprises and

individual business operators: resource tax (excluding water resources tax) urban maintenance and

construction tax property Tax urban land use tax stamp duty (excluding securities transaction stamp duty)

cultivated land occupation tax and education surcharge and local education surcharge).V. Notes to the Consolidated Financial Statements

1. Cash and cash equivalents

Item 2025.12.31 2024.12.31

Cash on hand 87093.15 187338.98

Cash at bank 2738309591.35 2900103350.93

Other monetary funds 463981024.91 575096160.60

Accrued interest on deposits 458604.17 2870025.12

Total 3202836313.58 3478256875.63

Including: Total overseas deposits 1932039437.80 1541218925.89

Note: For cash with restriction as of December 31 2025 please refer to Note V. 26. Assets with restricted

ownership or use rights.

2. Held-for-trading financial assets

Item 2025.12.31 2024.12.31

Financial assets measured at fair value through profit or loss 2118734927.43 4662427829.82

Including: Derivative financial assets 102418275.77 357697371.99

Financial products 2015710196.94 4304368163.61

Equity instrument investments 606454.72 362294.22

Total 2118734927.43 4662427829.82

3. Notes receivable

2025.12.312024.12.31

Type

Book value Loss Carrying Book value Loss Carrying allowance amount allowance amount

Bank acceptance notes 29443269.19 - 29443269.19 18700897.53 - 18700897.53

Commercial acceptance

notes - - - 1000000.00 24800.00 975200.00

Usance letter of credit 4900558.08 - 4900558.08 7161262.26 - 7161262.26

2012025.12.312024.12.31

Type

Book value Loss Carrying Book value Loss Carrying allowance amount allowance amount

Total 34343827.27 - 34343827.27 26862159.79 24800.00 26837359.79

(1) The Group had no pledged notes receivable at the end of the year.

(2) Outstanding endorsed or discounted notes that have not matured at the end of the year.

Type Amount derecognized Amount not derecognized at year end at year end

Bank acceptance notes 579500202.34 -

Total 579500202.34 -

(3) At the end of the year the Group had no notes that were converted into accounts receivable due to the drawer’s

failure to fulfill their obligations.

(4) Classification by loss allowance method

2025.12.31

Book value Loss allowance

Type Expected Carrying

Amount Percentage (%) Amount

credit amount

Loss rate

(%)

Loss allowance on an individual

basis - - - - -

Loss allowance by group 34343827.27 100.00 - - 34343827.27

Including:

Bank acceptance notes 29443269.19 85.73 - - 29443269.19

Usance letter of credit 4900558.08 14.27 - - 4900558.08

Total 34343827.27 100.00 - - 34343827.27

Continued:

2024.12.31

Book value Loss allowance

Type Expected Carrying

Amount Percentage Amount credit amount (%) Loss rate

(%)

Loss allowance on an

individual basis - - - - -

Loss allowance by group 26862159.79 100.00 24800.00 0.09 26837359.79

Including:

Bank acceptance notes 18700897.53 69.62 - - 18700897.53

Commercial acceptance notes 1 0 0 0 0 0 0 . 0 0 3.72 24800.00 2.48 975200.00

Usance letter of credit 7161262.26 26.66 - - 7161262.26

Total 26862159.79 100.00 24800.00 0.09 26837359.79

(5) Additions recoveries or reversals of provision during the current period

202Loss allowance

Balance as of 2024.12.31 24800.00

Additions -24800.00

Recoveries or reversals -

Write-offs -

Balance as of 2025.12.31 -

(6) The Group had no instances of write-offs of notes receivable during the current period.

4. Accounts receivable

(1) Disclosed by aging

Aging 2025.12.31 2024.12.31

Within 1 year 2976397242.69 2034895529.60

1 to 2 years 209681958.73 238795711.21

2 to 3 years 218038944.56 170875635.85

3 to 4 years 95771774.79 60366838.94

4 to 5 years 31874124.57 51885949.90

More than 5 years 47787590.25 20430272.62

Subtotal 3579551635.59 2577249938.12

Less: Loss allowance 600788404.50 451377592.69

Total 2978763231.09 2125872345.43

(2) Disclosed by loss allowance method

2025.12.31

Book value Loss allowance

Type Expected Carrying

Amount Percentage Amount credit amount (%) loss rate

(%)

Loss allowance on an

individual basis 477831346.79 13.35 401649516.19 84.06 76181830.60

Loss allowance by

group 3101720288.80 86.65 199138888.31 6.42 2902581400.49

Including:

Accounts receivable

due from feed related 3021228161.99 84.40 196738680.51 6.51 2824489481.48

customers

Accounts receivable

due from raw materials 80492126.81 2.25 2400207.80 2.98 78091919.01

customers

Total 3579551635.59 100.00 600788404.50 16.78 2978763231.09

Continued：

2032024.12.31

Book value Loss allowance

Type Expected Carrying

Amount Percentage credit amount (%) Amount loss rate

(%)

Loss allowance on an

individual basis 405348850.10 15.73 323018727.81 79.69 82330122.29

Loss allowance by

group 2171901088.02 84.27 128358864.88 5.91 2043542223.14

Including:

Accounts receivable

due from feed related 2138481469.74 82.97 127740602.00 5.97 2010740867.74

customers

Accounts receivable

due from raw materials 33419618.28 1.30 618262.88 1.85 32801355.40

customers

Total 2577249938.12 100.00 451377592.69 17.51 2125872345.43

Accounts receivable assessed for loss allowance individually

2025.12.31

Name

Book value Loss Expected credit allowance loss rate (%) Reasons for accrual

Customer 1 27857268.00 27857268.00 100.00 Estimated to be uncollectible

Customer 2 23054768.61 23054768.61 100.00 Estimated to be uncollectible

Remaining customers

whose accounts

receivable are assessed 426919310.18 350737479.58 82.16 Expected to be

for loss allowance on an partially uncollectible

individual basis (Note)

Total 477831346.79 401649516.19 84.06

Continued:

2024.12.31

Name

Book value Loss

Expected Reasons for

allowance credit loss rate (%) accrual

Expected to be

Customer 3 42627135.16 27309359.29 64.07 partially

uncollectible

Customer 2 23254768.61 23254768.61 100.00 Estimated to be uncollectible

Remaining customers whose

accounts receivable are Expected to be

assessed for loss allowance on 339466946.33 272454599.91 80.26 partially

an individual basis (Note) uncollectible

Total 405348850.10 323018727.81 79.69

Note: The expected credit loss rate of the remaining customers whose accounts receivable are assessed for

loss allowance on an individual basis is the average proportion of the total individual loss allowance for these

customers to their accounts receivable carry amount.

204Accounts receivable assessed for loss allowance by group

Group: Accounts receivable due from feed related customers

2025.12.312024.12.31

Expected Expected

Book value Loss allowance credit loss Book value

Loss

rate (%) allowance

credit loss

rate (%)

Within 1 year 2846856613.16 99164749.62 3.48 1976377631.01 54430120.58 2.75

1 to 2 years 104901011.52 43544874.20 41.51 106445053.98 30209303.90 28.38

2 to 3 years 51169388.90 36131328.02 70.61 34060641.30 22237266.57 65.29

3 to 4 years 8399546.30 7996126.56 95.20 6303814.91 5569582.41 88.35

4 to 5 years 2304202.35 2304202.35 100.00 4643152.17 4643152.17 100.00

More than 5

years 7597399.76 7597399.76 100.00 10651176.37 10651176.37 100.00

Total 3021228161.99 196738680.51 6.51 2138481469.74 127740602.00 5.97

Group: Accounts receivable due from raw materials customers

2025.12.312024.12.31

Book value Loss

Expected Expected

allowance credit loss Book value

Loss credit loss

rate (%) allowance rate (%)

Within 1

year 79490114.02 1465769.64 1.84 33419618.28 618262.88 1.85

More than

1 year 1002012.79 934438.16 93.26 - - -

Total 80492126.81 2400207.80 2.98 33419618.28 618262.88 1.85

(3) Additions recoveries or reversals of loss allowance during the current period

Loss allowance

Balance as of 2024.12.31 451377592.69

Additions 151532187.12

Transfer in resulting from changes in the scope of consolidation 188608899.78

Recoveries or reversals 46798387.69

Write-offs 135682799.25

Transfer out resulting from changes in the scope of consolidation 2426893.91

Other movements -5822194.24

Balance as of 2025.12.31 600788404.50

There were no material loss allowances recovered or reversed in current period.

(4) Accounts receivable written off during the current period

Item Amount written off

Accounts receivable written off 135682799.25

There were no significant accounts receivable write-offs during the current period.

(5) Top five closing balances of accounts receivable and contract assets by debtor

205The aggregate amount of the top five accounts receivable by debtor at the end of the period was

RMB252496843.77 representing 7.05% of the total closing balances of accounts receivable. The total

closing balance of provision for loss allowance related to these top five debts was RMB51736057.89.

5. Prepayments

(1) Disclosed by aging

2025.12.312024.12.31

Aging

Amount Percentage % Amount Percentage %

Within 1 year 895910016.40 99.77 626721115.36 99.75

1 to 2 years 1718160.17 0.19 956159.55 0.15

2 to 3 years 134313.14 0.01 349983.03 0.06

More than 3 years 266483.61 0.03 266185.60 0.04

Subtotal 898028973.32 100.00 628293443.54 100.00

Less: Loss allowance - -- - --

Total 898028973.32 100.00 628293443.54 100.00

(2) There was no significant prepayments aged more than 1 year.

(3) Top five closing balances of prepayments by debtor

The aggregate amount of the top five prepayments by debtor at the end of the period was

RMB431459035.15 representing 48.05% of the total closing balance of prepayments.

6. Other receivables

Item 2025.12.31 2024.12.31

Interest receivable - -

Dividends receivable - -

Other receivables 678782287.52 877870681.54

Total 678782287.52 877870681.54

(1) Disclosed by aging

Aging 2025.12.31 2024.12.31

Within 1 year 638955425.23 866674522.37

1 to 2 years 46948614.95 32440019.58

2 to 3 years 28072003.50 12671739.14

3 to 4 years 12262463.18 8095308.13

4 to 5 years 5686776.19 2575204.06

5 years above 14259260.13 13150205.46

Subtotal 746184543.18 935606998.74

Less: Loss allowance 67402255.66 57736317.20

Total 678782287.52 877870681.54

(2) Disclosed by nature

206Aging 2025.12.31 2024.12.31

Futures margin 439853378.45 597681330.15

Security deposits 144603799.87 165747051.27

Receivables due from external parties 101259959.86 97166632.53

Advance social insurance and housing fund 19545166.54 17884054.44

Petty cash 9049876.27 7533960.89

Others 31872362.19 49593969.46

Subtotal 746184543.18 935606998.74

Less: Loss allowance 67402255.66 57736317.20

Total 678782287.52 877870681.54

(3) Additions recoveries or reversals of provision during the current period

The first stage The second stage The third stage

Lifetime expected

Loss allowance Expected credit

Lifetime expected credit losses Total

losses over the credit losses (no (credit

next 12 months credit impairment occurred) impairment has occurred)

Balance as of

December 31 2024 10137976.90 - 47598340.30 57736317.20

Movement during the

current period:

- Transfer to the second

stage - - - -

- Transfer to the third

stage -1424987.13 - 1424987.13 -

- Reverse to the second

stage - - - -

- Reverse to the first

stage - - - -

Additions 1214701.90 - 12433014.33 13647716.23

Reversals - - 1778796.18 1778796.18

Write-offs 708964.83 - 954545.82 1663510.65

Transfer out resulting

from changes in the 917.05 - 397216.43 398133.48

scope of consolidation

Other movements -34045.76 - -107291.70 -141337.46

Balance as of

December 31 2025 9183764.03 - 58218491.63 67402255.66

There were no significant recoveries or reversals of loss allowance during the current period.

(4) Other receivables written off during the current period

Item Amount written off

Other receivables written off 1663510.65

There are no significant other receivables written off during the current period.

207(5) Top five closing balances of other receivables by debtor

Proportion of the Loss allowance

Debtor Nature Other receivables as of December 31 2025 Aging

total closing

balance of other as of December

receivables (%) 31 2025

Company A Future margin 151165238.64 Within 1 year 20.26 -

Company B Security deposits others 76450560.00 Within 1 year 10.25 764529.00

Company C Receivables due from external parties 35415842.96 1 to 3 years 4.75 21689285.32

Company D Future margin 34451453.42 Within 1 year 4.62 -

Customer E Future margin 31618981.83 Within 1 year 4.24 -

Total 329102076.85 44.12 22453814.32

7. Inventories

(1) Inventory by type

2025.12.312024.12.31

Loss Loss

Type allowance of allowance of

Book value inventories/ Carrying amount Book value inventories/ Carrying amount

costs to fulfil a costs to fulfil a

contract contract

Raw materials 7043170250.96 2838373.02 7040331877.94 6327477610.58 882196.02 6326595414.56

Work in progress 11873814.32 - 11873814.32 11205014.40 - 11205014.40

Finished goods 1487444677.16 14411428.87 1473033248.29 1517119858.82 13327386.94 1503792471.88

Consumptive

biological assets 2845663701.24 10195948.43 2835467752.81 3462860778.00 25080952.78 3437779825.22

Costs to fulfil a

contract 11070314.79 - 11070314.79 11011377.24 - 11011377.24

Total 11399222758.47 27445750.32 11371777008.15 11329674639.04 39290535.74 11290384103.30

(2) Loss allowance of inventories/costs to fulfil a contract

Additions for the Decreases for the current

Item 2024.12.31 current period period Reversed or 2025.12.31 Provision Others written-off Others

Raw

materials 882196.02 2511940.82 - 555763.82 - 2838373.02

Finished

goods 13327386.94 18658587.27 341036.84 17864401.97 51180.21 14411428.87

Consumptive

biological 25080952.78 12339787.58 - 27224791.93 - 10195948.43

assets

Total 39290535.74 33510315.67 341036.84 45644957.72 51180.21 27445750.32

208Loss allowance of inventories/costs to fulfil a contract (continued)

Basis for determining the net realizable Reasons for reversals or write-

Item value/remaining consideration and the off of inventory loss

costs that are expected to be incurred allowances/provisions for costs to fulfil a contract

The estimated selling price of the related

Raw materials finished goods less the estimated costs of Utilized in the production of completion and the estimated selling goods and subsequently sold

expenses and relevant taxes

The estimated selling price of related

Finished goods finished products less the estimated selling Goods have been sold

expenses and relevant taxes

The estimated selling price of related

Consumptive assets less the estimated cost to be incurred Raised to a saleable condition and

biological assets until they reaching the saleable condition the estimated selling expenses and subsequently sold

relevant taxes.

8. Assets held-for-sale

2025.12.312024.12.31

Item Book Loss Carrying Loss Carrying

value allowance amount Book value allowance amount

Non-current assets

held-for-sale - - - 641999.09 - 641999.09

Including: Fixed

assets - - - 641999.09 - 641999.09

Total - - - 641999.09 - 641999.09

9. Non-current assets due within one year

Item 2025.12.31 2024.12.31

Long-term receivables due within 1 year 16869873.84 3841618.60

Total 16869873.84 3841618.60

10. Other current assets

Item 2025.12.31 2024.12.31

Rental expenses 10292257.27 8323972.41

Insurance expenses 22503924.48 20874879.55

Miscellaneous prepaid expenses 76383535.07 38745324.35

Input VAT to be deducted and verified 139237211.21 147269704.85

Taxes and charges paid in advance 100236972.70 81067645.58

Factoring receivables 51151719.98 71323637.69

Others 38314215.23 27084704.20

Total 438119835.94 394689868.63

Factoring receivables by overdue status

Item 2025.12.31 2024.12.31

Current 50351362.56 69282726.61

209Item 2025.12.31 2024.12.31

Overdue 29866336.83 30491461.03

Add: Interest receivable 402459.21 467559.80

Subtotal 80620158.60 100241747.44

Less: Provision for impairment 29468438.62 28918109.75

Total 51151719.98 71323637.69

11. Loans and advances to customers

(1) Loans and advances to customers by method of guarantee

2025.12.312024.12.31

Item Book Provision for Carrying

Provision

value amount Book value for

Carrying

impairment impairment amount

Secured loans 159295.58 159295.58 - 1527732.60 1527732.60 -

Add: Interest

receivable 4439.40 4439.40 - 14386.86 14386.86 -

Subtotal 163734.98 163734.98 - 1542119.46 1542119.46 -

Less: Due

within one - - - - - -

year

Total 163734.98 163734.98 - 1542119.46 1542119.46 -

(2) Loans and advances to customers by overdue status:

2025.12.312024.12.31

Item Book Provision for Carrying

Provision

value amount Book value for

Carrying

impairment impairment amount

Current - - - - - -

Overdue 159295.58 159295.58 - 1527732.60 1527732.60 -

Add: Interest

receivable 4439.40 4439.40 - 14386.86 14386.86 -

Subtotal 163734.98 163734.98 - 1542119.46 1542119.46 -

Less: Due

within one - - - - - -

year

Total 163734.98 163734.98 - 1542119.46 1542119.46 -

(3) Provision for impairment of loans

The first stage The second stage The third stage

Expected Lifetime expected Lifetime expected Provision for impairment of

credit losses credit losses credit losses loans Total

over the next (no credit (credit

12 months impairment impairment has occurred) occurred)

Balance as of December 31

2024--1542119.461542119.46

Movement during the current

period:

210The first stage The second stage The third stage

Expected Lifetime expected Lifetime expected Provision for impairment of

credit losses credit losses credit losses loans Total

over the next (no credit (credit

12 months impairment impairment has occurred) occurred)

- Transfer to the second stage - - - -

- Transfer to the third stage - - - -

- Reverse to the second stage - - - -

- Reverse to the first stage - - - -

Additions - - - -

Reversals - - 231734.05 231734.05

Write-offs - - 1146650.43 1146650.43

Balance as of December 31

2025--163734.98163734.98

12. Long-term receivables

(1) Long-term receivables by nature

2025.12.312024.12.31

Item Discounted

Book value Loss Carrying Loss Carrying rate allowance amount Book value allowance amount

Security deposits 141382963.43 - 141382963.43 154633423.91 - 154633423.91

Contracting fees

receivables in 115960764.82 - 115960764.82 23853433.31 - 23853433.31 3.5%~148.89%

installments

Others 1621714.13 - 1621714.13 528000.00 - 528000.00

Less: Unrealized

financing income 23632912.85 - 23632912.85 6042524.33 - 6042524.33

Subtotal 235332529.53 - 235332529.53 172972332.89 - 172972332.89 -

Less: Long-term

receivables due within 16869873.84 - 16869873.84 3841618.60 - 3841618.60

one year

Total 218462655.69 - 218462655.69 169130714.29 - 169130714.29 -

Note: The security deposits were primarily lease deposits and electricity deposits.

(2) The Group had no overdue long-term receivables during the current period.

(3) No long-term receivables were derecognized during the current period.

(4) The Group had no continuing involvement in transferred long-term receivables that resulted in the

recognition of assets or liabilities during the current period.

21113. Long-term equity investments

Movements during the current period

2024.12.31 2024.12.31 Investment Declared 2025.12.31 2025.12.31

Investee Carrying Provision for Increase in Decrease in income Other Other distribution Provision Carrying Provision for

amount impairment investment investment recognized comprehensive equity of cash for Others amount impairment under equity income movements dividends impairment

method or profits

* Associates

Bangpu Seed

Industry

Technology 9864033.29 - - - -4298.24 - - - - - 9859735.05 -

Co. Ltd.Foshan

Haihang

Xingfa

Agriculture

and Animal 11676214.81 - - - 3670342.57 - - - - - 15346557.38 -

Husbandry

Development

Co. Ltd.Wujiaqu

Taikun Plant

Protein Co. 49636938.47 - - - 4343844.72 - - -985376.98 - - 52995406.21 -

Ltd.Alar

Ruiliheng

Biological 42091913.68 - - - 338513.35 - - -872888.83 - - 41557538.20 -

Protein Co.Ltd.Hutubi

Tiankang

Plant Protein 64435541.24 - - - 7754114.99 394446.44 - - - - 72584102.67 -

Co. Ltd.Beijing

Haizhibao Pet 4900000.00 - 4900000.00 - -3738770.90 - - - - - 6061229.10 -

Co. Ltd.

212Movements during the current period

2024.12.31 2024.12.31 Investment Declared 2025.12.31 2025.12.31

Investee Carrying Provision for Increase in Decrease in income Other Other distribution Provision Carrying Provision for

amount impairment investment investment recognized comprehensive equity of cash for Others amount impairment under equity income movements dividends impairment

method or profits

Qingdao

Nongken

Dahuang

Trading - 10910542.10 - - - - - - - - - -

Development

Co. Ltd.Sichuan Smart

Fishing

Machinery 1186627.86 - - - -430596.38 - - - - - 756031.48 -

Technology

Co. Ltd.Weishi

(Shandong)

Biotechnology - - 2000000.00 - -55753.23 - - - - - 1944246.77 -

Co. Ltd.Subtotal 183791269.35 10910542.10 6900000.00 - 11877396.88 394446.44 - -1858265.81 - - 201104846.86 -

* Joint

ventures

Haid Cherry

Valley

Vietnam Co. 96426623.51 - - - 13856111.34 -5427456.89 - - - - 104855277.96 -

Ltd.Subtotal 96426623.51 - - - 13856111.34 -5427456.89 - - - - 104855277.96 -

Total 280217892.86 10910542.10 6900000.00 - 25733508.22 -5033010.45 - -1858265.81 - - 305960124.82 -

Note:The business license of Qingdao Nongken Dahuang Trading Development Co. Ltd. has been revoked during the current period.

21314. Other non-current financial assets

Item 2025.12.31 2024.12.31

Equity instrument investments 245857402.68 238380604.68

Total 245857402.68 238380604.68

15. Investment properties

(1) Investment properties

Item Buildings Land use rights Total

I. Cost

1. As of 2024.12.31 62213700.85 45375288.62 107588989.47

2. Additions during the period 3751589.24 -509095.37 3242493.87

(1) Purchases 679301.67 - 679301.67

(2) Translation differences arising

from translation of foreign - -509095.37 -509095.37

currency financial statements

(3) Transfer from fixed assets 3072287.57 - 3072287.57

3. Decreases during the period 4948558.22 41861793.45 46810351.67

(1) Disposals 799680.59 41861793.45 42661474.04

(2) Transfer to fixed assets 4148877.63 - 4148877.63

4. As of 2025.12.31 61016731.87 3004399.80 64021131.67

II. Accumulated depreciation and

amortization

1. As of 2024.12.31 14964198.48 - 14964198.48

2. Charges for the period 2808779.45 - 2808779.45

(1) Depreciation or amortization 2113732.82 - 2113732.82

(2) Transfer from fixed assets 695046.63 - 695046.63

3. Decreases during the period 948913.80 - 948913.80

(1) Disposals 41102.05 - 41102.05

(2) Transfer to fixed assets 907811.75 - 907811.75

4. As of 2025.12.31 16824064.13 - 16824064.13

III. Provision for impairment

1. As of 2024.12.31 - - -

2. Additions during the period - 9616326.03 9616326.03

(1) Charges for the period - 9616326.03 9616326.03

3. Decrease during the period - 9616326.03 9616326.03

(1) Disposals - 9616326.03 9616326.03

4. As of 2025.12.31 - - -

IV. Carrying amount

1. As of 2025.12.31 44192667.74 3004399.80 47197067.54

2. As of 2024.12.31 47249502.37 45375288.62 92624790.99

214(2) Investment properties without ownership certificates

Item Carrying amount Reason for not having obtained ownership certificate

Buildings 12298910.96 In progress

16. Fixed assets

Item 2025.12.31 2024.12.31

Fixed assets 17007956953.83 16926972419.08

Fixed assets to be disposed of - 3715307.91

Total 17007956953.83 16930687726.99

(1) Fixed assets

* Fixed assets

Item Plant and Machinery and Electronic Other buildings equipment Motor vehicles equipment equipment Total

I. Cost

1. As of 2024.12.31 12571695911.93 10726205804.44 448823344.97 672894648.57 748324778.17 25167944488.08

2.Additions during the period 811501704.71 905345946.65 61826425.24 82393149.79 82334437.14 1943401663.53

(1) Purchases 70086023.11 196249364.91 59304689.14 65749001.81 40998500.92 432387579.89

(2) Transfers from construction in progress 648409477.82 585385763.92 1706198.00 14648941.01 41608850.49 1291759231.24

(3) Additions due to business combinations 158216220.93 184742207.53 4548365.08 3912948.76 2356854.52 353776596.82

(4) Translation differences arising from

translation of foreign currency financial -69358894.78 -61031389.71 -3732826.98 -1917741.79 -2629768.79 -138670622.05

statements

(5) Others 4148877.63 - - - - 4148877.63

3. Decreases during the period 147986588.42 214053328.87 23667390.60 21732389.94 51776610.65 459216308.48

(1) Disposals or write-offs 72869078.57 151392883.88 23190665.56 19132967.25 47703776.35 314289371.61

215Item Plant and Machinery and buildings equipment Motor vehicles

Electronic Other

equipment equipment Total

(2) Reduction in the scope of consolidation 72045222.28 62660444.99 476725.04 2599422.69 4072834.30 141854649.30

(3) Others 3072287.57 - - - - 3072287.57

4. As of 2025.12.31 13235211028.22 11417498422.22 486982379.61 733555408.42 778882604.66 26652129843.13

II. Accumulated depreciation

1. As of 2024.12.31 2384852166.99 4610395189.84 286033921.73 493883699.13 398680175.44 8173845153.13

2. Charges for the period 516794095.63 989863054.18 57332046.28 78289021.05 102995655.03 1745273872.17

(1) Provision 487696052.44 925533453.01 56079125.93 77124167.42 103808556.53 1650241355.33

(2) Additions due to business combinations 37618814.58 86596970.57 3473308.84 2283289.95 518807.73 130491191.67

(3) Translation differences arising from

translation of foreign currency financial -9428583.14 -22267369.40 -2220388.49 -1118436.32 -1331709.23 -36366486.58

statements

(4) Others 907811.75 - - - - 907811.75

3. Decreases during the period 55485879.56 150767475.74 21497276.69 19333113.42 39875346.26 286959091.67

(1) Disposals or write-offs 33626027.89 110682834.66 21154657.12 17165159.06 36914119.88 219542798.61

(2) Reduction in the scope of consolidation 21164805.04 40084641.08 342619.57 2167954.36 2961226.38 66721246.43

(3) Others 695046.63 - - - - 695046.63

4. As of 2025.12.31 2846160383.06 5449490768.28 321868691.32 552839606.76 461800484.21 9632159933.63

III. Provision for impairment:

1. As of 2024.12.31 48545055.54 17256284.42 67047.85 257816.82 1000711.24 67126915.87

2. Charges for the period 1018871.95 - - - - 1018871.95

(1) Provision 854621.25 - - - - 854621.25

(2) Additions due to business combinations 164250.70 - - - - 164250.70

3. Decreases during the period 40525669.66 14654685.75 26585.37 235963.58 689927.79 56132832.15

(1) Disposals or write-offs 2364.34 - - - - 2364.34

(2) Reduction in the scope of consolidation 40523305.32 14654685.75 26585.37 235963.58 689927.79 56130467.81

216Item Plant and Machinery and Electronic Other buildings equipment Motor vehicles equipment equipment Total

4. As of 2025.12.31 9038257.83 2601598.67 40462.48 21853.24 310783.45 12012955.67

IV. Carrying amount

1. As of 2025.12.31 10380012387.33 5965406055.27 165073225.81 180693948.42 316771337.00 17007956953.83

2. As of 2024.12.31 10138298689.40 6098554330.18 162722375.39 178753132.62 348643891.49 16926972419.08

* Impairment test of fixed assets

The recoverable amount is determined by the net amount of fair value less disposal expenses.Item Carrying Accumulated Recoverable Impairment

Determination of fair Key Basis for determining key

amount depreciation amount amount value and disposal expenses parameters parameters

Fixed assets with Refer to the recent Based on the asset status refer to the

impairment 1074000.00 219378.75 - 854621.25 disposal recovery ratio Fair value and recoverable ratio of similar assets

indicators of similar assets disposal rate disposed by the Company during the year

* Fixed assets temporarily idle

Item Cost Accumulated depreciation Provision for impairment Carrying amount Notes

Plant and buildings 20454751.05 3946904.93 8273699.31 8234146.81

Machinery and equipment 23651238.16 15546273.82 2592902.67 5512061.67

Motor vehicles 112227.24 64367.26 40462.48 7397.50

Electronic equipment 285000.93 170797.65 7493.06 106710.22

Other equipment 1203234.98 903624.58 285219.94 14390.46

Total 45706452.36 20631968.24 11199777.46 13874706.66

* There were no fixed assets leased out under operating leases during the current period.

217* Fixed assets without ownership certificates

Item Carrying amount Reasons for not having obtained ownership certificate

Plant and buildings 401521636.41 In progress

* The Group did not offset any government grants against the carrying amount of fixed assets during the current period.

(2) Fixed assets to be disposed of