YANTAI CHINA PET FOODS
Official Wechat
YANTAI CHINA PET FOODS CO. LTD
NO.88 FEILONG ROAD LAISHAN ZONE YANTAI CHINA / TEL：400-111-8698 / WEB：http://www.wanpy.com.cn ENVIRONMENTAL SOCIAL AND
GOVERNANCE REPORTYANTAI CHINA PET FOODS 01 / 02
About This Report
This document constitutes the 2024 Environmental Social and Governance (ESG) Report for Yantai
China Pet Foods Co. Ltd. (hereafter referred to as "China Pet Foods" or "the Company").In alignment with the principles of objectivity standardization transparency and comprehensiveness
this report provides a detailed account of the Company’s practices and performance in sustainable
development across three dimensions - environment social responsibility and corporate governance.It outlines China Pet Foods' actions and reflections on sustainability management addresses
stakeholder expectations and concerns and fosters effective communication with all relevant parties.·Scope of the Report
This report covers the period from January 1 2024 to December 31 2024. To ensure comparability and completeness
certain sections of this report include data from prior years where relevant.·Reporting Standards
This report is primarily based on the following internationally and domestically recognized frameworks for ESG sustainable
development and social responsibility: the Global Reporting Initiative (GRI) Sustainability Reporting Standards International
Organization for Standardization ISO 26000: 2010 - Guidance on Social Responsibility the Hong Kong Stock Exchange
ESG Reporting Guide the State-owned Assets Supervision and Administration Commission (SASAC) Notice on Forwarding
the Research on the Preparation of ESG Special Reports for Listed Holdings of State-Owned Enterprises (SOEs) and the Self-
regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Reporting. Additionally
the report incorporates industry-specific context and highlights the unique characteristics of the Company.·Data Sources
The data information and case studies presented in this report are sourced from the Company’s public records and internal
statistics. Unless otherwise noted all financial figures are reported in Renminbi (RMB). In case of any discrepancies between
the financial data in this report and the annual report the figures in the financial report shall prevail.·Report Access
The electronic version of this report is available for download on the Shenzhen Stock Exchange website (www.szse.cn) and
the CNINFO website (www.cninfo.com.cn) where additional company information can also be found.YANTAI CHINA PET FOODS
CONTENTS
About This Report 01 ESG Governance System 35 People First: Driving Industrial Upgrading
Building a Fulfilling Workplace 73 Through Innovation 97
Scope of the Report
Reporting Standards 1.Overall Employee Profile ·················· 75
Data Sources Sound Governance and Steady Operations 41 2.Compensation and Promotion Policies ······ 76
Report Access 3.Workplace Safety ·························· 77
Product Safety
and Quality 103
1.Sound Governance Structure ·················· 43 4.Professional Skills Development ············ 78
2.Information Disclosure and Investor Relations ·· 47 5.The 26th Anniversary of China Pet Foods ···· 79
About China Pet Foods 05 3.Investor Protection and Education ············· 51 6.Employee Benefits Policy ··················· 79
Core Business 4.Standardized Internal Control Framework ······ 53 7.2024 Recognition Ceremony ················ 81 Looking Ahead 109
Company Culture 5.Fulfilling Tax Obligations with Responsibility ··· 54 8.A Warm Journey Home ····················· 83
Company Milestones 9.Pet-Friendly Spaces ······················· 84
10.Employee Representative Conference ···· 84
Green Development Shared Prosperity 55
Indices of Guidelines Topics 110
1.Environmental Compliance and Management ··· 57 Protection of Supplier Customer and
Core Competitiveness 13 Consumer Rights 852.Clean Production ····························· 61
3.Solar Photovoltaic Project ···················· 62 1.Supplier Management ···················· 87
1.Brand Advantage ·················· 13
4.Use of Biodegradable Packaging Materials ····· 62 2.Customer and Consumer Rights Protection 88
2.Global Vision and Strategic Layout ·· 23
5.Environmental Training and Awareness Promotion ·· 63
3.Product Quality Advantage ········· 27
4.R&D Strength ····················· 29 Public Relations and
64
5.Robust Risk Resilience ············· 31 Social Welfare Programs 89
Greener World Smarter Future
1.Rooted in Real Economy ··················· 91
1.Canada Facility ······························· 67 2.Bringing Chinese Brands to the World ······ 94
Honors and Accreditations 33 2.New Zealand Facility ·························· 69 3.Driving Industry Development ·············· 95
3.U.S. Facility ··································· 71 4.Public Welfare and Animal Rescue ·········· 96YANTAI CHINA PET FOODS 05 / 06
About China Pet FoodsYANTAI CHINA PET FOODS 07 / 08
Company Overview
Founded in 1998 China Pet Foods has been dedicated to the pet food industry
for 27 years. As a pioneer in China's pet food sector the Company has grown
into a top-tier enterprise within the broader domestic pet industry.On August 21 2017 China Pet Foods was listed on the Shenzhen Stock Exchange
(Stock Name: China Pet Foods; Stock Code: 002891) becoming the first pet food
company in China to go public on the Shenzhen Stock Exchange (SZSE).As a trailblazer in China's pet industry China Pet Foods has remained dedicated to the pet
food sector. The Company specializes in the research development manufacturing and
distribution of a wide array of products for dogs and cats including dry foods wet foods
treats and dietary supplements. It is among the companies with the most extensive product
lines and the most diverse range of offerings in China’s pet food industry.The Company’s brand portfolio includes well-recognized names such as WANPY ZEAL
and TOPTREES. WANPY has been recognized as a China Famous Trademark making
China Pet Foods the first company in the pet food sector to receive such distinction.Pursuing a global strategy China Pet Foods has steadily expanded its international footprint.The Company operates 22 state-of-the-art production facilities worldwide with exports
reading 85 countries across five continents. Its proprietary brands are now sold in 73
countries. Through a consistent focus on international development and simultaneous global
market expansion China Pet Foods is steadily establishing itself as a leading player in the pet
food industry - backed by a global vision strategy and operational presence.Guided by our philosophy that “Pets are our friends and part of our family” China Pet Foods
has for 27 years approached pet food production with the same care and standards as
preparing meals for loved ones. The Company remains committed to delivering nutritious中宠股份产业园
healthy and palatable food for our beloved dogs and cats around the world.中国·烟台YANTAI CHINA PET FOODS 09 / 10
Core Business
China Pet Foods is primarily engaged in the research development production and sale of pet food with
a product portfolio that covers dry food wet food treat and health supplement for both dogs and cats -
each comprising multiple product lines. These include among others fresh meat series dry food and wet
food series freeze-dried treat baked food chicken treats duck treats beef treats fish treats pet biscuits Company Culture
and dental series. In total the Company offers more than 1000 distinct products across over a dozen
product series.Our Philosophy Our Mission
1 2 Pets are our friends and part Promote the healthy Dry Foods Wet Foods of our family. standardized and high-quality
development of China’s pet
industry.Our Vision Core Value
3 Pet Treat 4 Health To be the leading enterprise Customer Quality Supplement in global pet food industry. Innovation ResponsibilityYANTAI CHINA PET FOODS 11 / 12
1998
Mr. Hao Zhongli founder of China Pet Foods
transitioned from the foreign trade food sector to 2007
enter the pet food industry. He leased a facility The third facility focused on pet 2012
to produce premium chicken jerky treats for pets 2003 treats commenced its operation. To China Pet Foods partnered with and successfully exported the products to Japan strengthen its domestic sales efforts Vitakraft a renowned German
making the Company the pioneer in the China’s With expanding sales China Pet China Pet Foods established Yantai pet company with 189 years of
pet food industry. Foods invested in a new facility WANPY Pet Products Sales Co. Ltd. history to begin construction of
(first facility) in the Laishan a subsidiary dedicated to sales and 2008 its dry food plant (fifth facility). Economic Development Zone distribution within China. The plant was completed and
1999 Yantai. Built to standards for The Company began began operations by the end of
human food exports the facility
The Company began selling construction of its fourth the year marking the first Sino-achieved world-class levels in both
chicken jerky products under its facility - a joint venture with German joint venture in China's infrastructure and operation and
proprietary brand WANPY Japan’s leading corporation pet industry. was registered with the U.S. Food
establishing WANPY as the go- 2005 IRIS. This state-of-the-
That same year the Company
and Drug Administration (FDA).to brand for chicken jerky in China. art site located in Yantai was awarded as a National
The Company completed and brought was developed as one of High-Tech Enterprise
online its dedicated pet wet food plant the world’s most advanced underscoring its long-standing 2013(second facility）- China’s first of its commitment to research and
kind at the time. development since its founding.WANPY was recognized as a “ChinaFamous Trademark” the first in the
country’s pet food industry.
2015
China Pet Foods completed
2024 construction of a $28 million pet treat 2022 2018 2017 facility in Southern California - then China Pet Foods signed a strategic partnership ·The Company commenced construction 2021 the largest of its kind in the United
agreement with SAP becoming the first of Phase III of its industrial park The Company commenced ·China Pet Foods’ Canadian facility - built with a total ·On August 21 2017 China Pet Foods was States. Remarkably the plant began
company in China’s pet industry to formalize 2023 investing RMB 100 million to build the construction of a premium pet wet investment of USD 16 million - was completed and successfully listed on the Main Board of production and achieved profitability
such a collaboration - ushering in a new era of industry’s first raw material processing food facility in New Zealand with a began operations. It has since become the largest pet the Shenzhen Stock Exchange becoming in the same year. This milestone
digital transformation for the industry. To enhance sterilization plant in China. The facility was officially total investment of RMB 230 million. treat factory in Canada. the first pet food company in China to go marked the first instance of a Chinese outcome and ensure the
efficiency of its processes commissioned in March 2023.public on this platform. pet food company investing in
·The Company brought its first IPO-funded project manufacturing in a developed country
China Pet Foods established
· China Pet Foods signed a strategic 2019 the world’s largest pet treat factory (ninth facility) into ·That same month the Company made signaling a major step forward in the the Yantai China Pet Foods -
cooperation agreement with China operation. a strong impression at the 20th Pet Fair Company’s international development.Huada Irradiation Sterilization ·The Company commenced construction of a new Asia showcasing its full brand portfolio.Center with a designed Agricultural University in Beijing. wet food facility - an IPO-funded project with a
annual sterilization capacity of Centered on advancing pet food
·The Company officially launched its new R&D Center China Pet Foods invested heavily and
total investment of RMB 400 million. Occupying 70
nutrition and health the partnership with a total area of over 12000 square meters. commissioned U.S. advertising firm Moxie 50000 tons. The facility began mu of land and encompassing a total construction
leverages the strengths of both parties The Center encompasses multiple facilities including: Sozo to design new packaging for its operations in April 2023. area of 45000 square meters the plant was
to promote in-depth collaboration across (1) New Product Development Center; flagship brand WANPY conveying the
designed with an annual production capacity ofindustry academia and research. (2) Testing Center; message: “Beauty and Quality Globally
50000 tons making it the largest pet wet food (3) Research Center for Pet Nutrition and Health Aligned.” During the event the Company
facility in the Asia-Pacific region. Operations
·China Pet Foods commenced operations (4) The Institute of Pet Nutrition and Health. also concluded the inaugural WANPY
officially began in December 2020.at its intelligent dry food plant—an Cup China Pet Photography Contest.RMB 400 million project built on 100 ·China Pet Foods acquired 100% equity in the pet food
·China Pet Foods invested in the construction
mu of land with an annual capacity of company behind the New Zealand brand ZEAL - further
of a pet treat facility in Cambodia. With a total
100000 tons. The launch of this “5.0 advancing the Company’s global strategic footprint.construction area of 20000 square meters andSmart Manufacturing” facility marked
a designed production capacity of 6000 tons it
the establishment of the world’s most ·China Pet Foods completed construction of its modern
became the largest pet treat factory in the country.advanced dry food production base logistics center with an investment of over RMB 100
Company The facility began operations in March 2020 and under China Pet Foods. million. The facility was built to support the Company’s achieved profitability within the same year. rapid growth needs.MilestonesYANTAI CHINA PET FOODS 13 / 14
Uniform Quality
Globally Shared
Core Competitiveness
1.Brand Advantage
In addition to gaining a strong foothold in China’s mid- to high-end market through its core brands
- WANPY ZEAL and TOPTREES - China Pet Foods has positioned the globalization of its self-
owned brands as a key engine of its international expansion. Leveraging brands such as WANPY Guided by the philosophy of “Pets are our friends and part of our family” China Pet Foods is committed
ZEAL TOPTREES Great Jack’s Jerky Time and TRULY the Company has established a robust to cultivating and maintaining a trusted brand image in the pet food industry. Following years of deep
global presence with products now exported to 73 countries across five continents. engagement in the market the Company has successfully developed a portfolio of proprietary brands
- led by WANPY ZEAL and TOPTREES - forming a distinctive brand matrix tailored to meet the
Thanks to consistent product quality and precise market positioning the Company’s international diverse preferences and needs of pet owners across various consumer segments.business has continued to grow steadily accompanied by rising brand impact across the world.Looking ahead China Pet Foods will further advance its globalization strategy - leveraging Through ongoing expansion and brand-building efforts China Pet Foods has earned strong consumer
technological innovation and brand building to strengthen its competitive edge in the global recognition and trust. As a leading force in driving domestic substitution the Company sits at the
mid-to high-end pet food market and establish a Chinese brand with global influence. forefront of homegrown brands making inroads into the mid- to high-end market segment.YANTAI CHINA PET FOODS 15 / 16
27 Years of Trust
Chosen by Pets in 73 Countries
Launched in 1998 WANPY is China Pet Foods’ longest-standing and most widely recognized core
brand. It was also the first pet food brand in China to receive the China Famous Trademark designation
- an industry milestone. Since its inception WANPY has remained true to its product innovation
philosophy - Quality Innovation and Fun successfully cultivating a brand image that is warm
energetic and playful.WANPY products are sold across five continents and in 73 countries. As its brand strategy continues
to take root the belief “Healthy Pets Happy Play” has further strengthened WANPY ’s reputation
and visibility among domestic brands helping to lay the groundwork for a defensible brand position.With its commitment to fresh at the source WANPY is setting the benchmark for fresh meat pet
food through its “Five Fresh” framework: Fresh Distance Fresh Speed Fresh Standard Fresh Nutrition
and Fresh Kitchen - redefining what fresh meat pet food truly means.WANPY Little Golden Shield 100% Fresh Meat
In 2024 WANPY launched its 100% Fresh Meat Complete and Balanced Cat Food positioned for the mid- to high-end market.This upgraded grain-free series features a high fresh meat content and advanced freshness-locking process. At the WANPY 5.0
Smart Factory fresh meat ingredients undergo a dual-track quality control system - 25 inspection steps and 49 data monitoring
points - to ensure optimal quality. The production line customized by Bühler (one of the world’s two leading equipment suppliers)
enables flexible manufacturing with a rapid 45-minute switch between different product types and formulations. All processing
pipelines are made from pharmaceutical-grade 316L stainless steel and operate around the clock ensuring that every stage of
production meets human food-grade safety standards.YANTAI CHINA PET FOODS 17 / 18
WANPY × People’s Daily Online: Inside the World-Class WANPY Factory
When technology and responsibility come together even the smallest piece of pet food carries a sense of care and As one of China’s leading national news platforms People’s Daily Online has earned its reputation as a trusted voice through
commitment. On 15 March People’s Daily Online’s “Transparent Factory” livestream offered viewers a close-up look at China authoritative timely wide-ranging and insightful reporting. Its “Transparent Factory” livestream series seeks to foster corporate
Pet Foods’ WANPY 5.0 Smart Factory and its full production line uncovering the process behind the making of this globally openness by offering the public a direct view into production processes - enabling consumers to witness the skill and quality
trusted pet food made in China. behind "Made in China" firsthand. By participating in the Transparent Factory initiative WANPY not only demonstrated itsconfidence in product quality but also showcased the high standards and advanced capabilities of “Intelligent Manufacturingin China” to a global audience.YANTAI CHINA PET FOODS 19 / 20
Pouring Infinite Love into Finite Lives
with Respect and Care
TOPTREES is the premium pet food brand under China Pet Foods. Founded on the
Co-branded Promotional Poster: TOPTREES × Empresses in the Palace
principles of fresh ingredients scientific formulation and cutting-edge technology the
brand is dedicated to creating innovative high-quality nutrition tailored to the health and
growth needs of dogs and cats with a focus on delivering a truly reassuring experience for
pet owners. Its product portfolio spans both canine and feline categories including dry food
wet food and treats.On April 8 2025 TOPTREES China Pet Foods’ core proprietary brand signed a
partnership agreement with CCTV earning the prestigious "CCTV Excellence in Quality
and Manufacturing" recognition. This makes TOPTREES the first brand in China’s pet food
industry to secure a strategic collaboration with CCTV.TOPTREES Product Series
TOPTREES: Toptrees Youth Key Visual
Every honor lifts us higher.In 2025 we continue to stay on top!YANTAI CHINA PET FOODS 21 / 22
ZEAL made a splash through its
Driven by a passion for natural food a commitment to environmental sustainability and a deep
respect for nature New Zealander Harjit Sidhu founded the natural pet food brand ZEAL in 1999. collaboration with Never’s Family
"Uncovering the secret to premium nutrition from one of the world’s most pristine environments". the well-known pet IP associated
with top Taobao livestreamer
ZEAL was a brand owned by the Natural Pet Treat Company (NPTC) based in New Zealand. In 2018 Austin Li.China Pet Foods acquired the brand ZEAL and leveraging its global supply chain platform successful ZEAL × Never’s Family
transformed and relaunched ZEAL into the global market in 2019. Today the brand offers pet owners
Founded in 1970 Dogster is one of
around the world a comprehensive range of premium New Zealand–made products - including air-dried
the world’s most widely read canine
food wet food treats cod liver oil and specially formulated milk for cats and dogs - available in over 30 magazines celebrated for its warmth
countries and regions. humor and genuine love for dogs as
well as its depth of expertise. With
Guided by the philosophy “True to Nature Pure by Origin” ZEAL firmly believes that the best a strong editorial team of veterinarynutrition comes from nature itself. Its uncompromising commitment to quality - embodied in its “zero professionals and contributions fromcanine writers and experts worldwidecompromise” product ethos - has earned the trust of consumers over many years. From its decade-
the magazine ensures its health-
long best-selling Air-Dried Treats popular Grain-Free Canned Food to its star product Lactose Free related content is accurate timely and
Pet Milk ZEAL has consistently delivered excellence in both product quality and brand character. In authoritative.
2024 ZEAL launched New Zealand’s first natural air-dried food crafted with exceptionally rare and
luxurious ingredients that account for just 1% of global supply. Consumers increasingly associate ZEAL In 2024 ZEAL Canada Gently Air-
with qualities such as natural pure rare and trustworthy. The values of originality natural nutrition and Dried Dog Food was ranked Top 1 inDogster’s “6 Best Air-Dried Dog Foodsauthentic flavor continue to shape ZEAL as a leading brand of premium New Zealand–made pet food.of 2024” and also placed Top 3 in the
“Best Air-Dried Dog Food of 2024” by
Certified Pet Care (CPC) earning dual
international accolades for product
excellence.ZEAL holds the FernMark License New Zealand’s
prestigious national quality certification as well as
the official RMP certification and is included in the
New Zealand Food Safety Authority (NZFSA) Risk
Management Program. In August 2024 China Pet Foods’
New Zealand facility was honored with the NZCBIA
Special Contribution Award presented in person by
New Zealand Prime Minister Christopher Luxon -
an event that celebrated the strength of intelligent
manufacturing from China.New Zealand Prime Minister Christopher Luxon Presenting Award to China Pet FoodsYANTAI CHINA PET FOODS 23 / 24
2.Global Vision and Strategic Layout
With over two decades of experience in the pet food industry China Pet Foods 2015 2018
has evolved into a multinational enterprise with a global perspective and strategic
international footprint. Its manufacturing operations spans five countries: China
the United States Canada New Zealand and Cambodia. Notably the launch of its
U.S. facility marked the first instance of a Chinese pet food company establishing
production in a developed market.Amid rapid growth in the pet industry China Pet Foods continues to invest in
building a leading global supply chain platform. With a long-term integrated
approach to capacity planning the Company is focused on building a defensible
global supply chain defined by product quality operational stability and resilience.It currently operates 22 modern pet food production bases worldwide along with
an expert-level R&D center and a dedicated pet nutrition and health institute.Of these 22 modern factories 14 are located in China and 8 overseas.China Pet Foods invested USD 28 million to build what was then the largest pet China Pet Foods invested USD 16 million to establish the then largest pet treat
treat facility in the United States. The plant became operational and profitable factory in Canada. The facility produces the Company’s proprietary brands
within the same year. More notably it marked the first time a Chinese pet food including Great Jack’s and Buddy Jack’s which have successfully entered major
company had established manufacturing in a developed market. In 2023 work North American retail chains such as Costco PetSmart and Petco.began on a second larger facility to further increase production capacity.
201820202021
China Pet Foods acquired 100% of the Natural Pet Treat Company China Pet Foods invested RMB 230 million to build a high-end pet wet China Pet Foods acquired a 70% stake in PetfoodNZ International
Limited a company with over 20 years of history and the owner of the food facility in New Zealand. Limited the largest pet canned food manufacturer in New Zealand for
brand ZEAL further advancing its globalization strategy. approximately RMB 154.5 million.
2019
Global Factories The Company established the then largest pet treat
factory in Southeast Asia through an investment
in Cambodia. The facility became operational and
profitable within the same year. Leveraging local raw
materials and labor cost advantages it serves China
Pet Foods’ global supply chain. A second facility in
Cambodia is currently under construction.YANTAI CHINA PET FOODS 25 / 26
Pet food consumption is concentrated in developed markets such as the United States Europe and In addition to gaining a strong foothold in China’s mid- to high-end market through its core brands - WANPY
Japan where the industry developed early and has since matured with market share largely dominated ZEAL and TOPTREES - China Pet Foods has positioned the globalization of its self-owned brands as a key engine
by established global brands. Over time China Pet Foods has built a strong reputation for consistent of its international expansion. Leveraging brands such as WANPY TOPTREES ZEAL Great Jack’s Jerky
quality and reliability forming long-term partnerships with leading brand customers across five Time and TRULY the Company has established a robust global presence with products now exported to 73
continents. Through international sales cooperation and overseas joint ventures with these customers countries across five continents. Thanks to consistent product quality and precise market positioning the Company’s
the Company has established stable distribution channels and a global sales network. international business has continued to grow steadily accompanied by rising brand impact across the world. Looking
ahead China Pet Foods will further advance its globalization strategy - leveraging technological innovation and
brand building to strengthen its competitive edge in the global mid- to high-end pet food market and establish a
Chinese brand with global influence.YANTAI CHINA PET FOODS 27 / 28
3.Product Quality Advantage
At China Pet Foods product quality is regarded as the lifeline of the business. The Company maintains strict quality control at every
stage - from the sourcing of raw materials to the production process and final product delivery. Ingredients used in the Company’s
core products are sourced exclusively from suppliers registered with relevant Chinese government authorities in accordance with
officially requirements. These suppliers must meet national standards for parameters such as microbiological levels drug residues
and heavy metal content.To further ensure product integrity the Company has implemented a Comprehensive Traceability System and a Product Recall
Mechanism. These systems enable full tracking of each product from the specific materials used to the production process and
shipping. The batch numbers of raw auxiliary and packaging materials their suppliers storage times and usage of each material
can all be tracked as can the production time key processing steps responsible personnel and shipment details. This end-to-end
visibility ensures strict oversight and helps guarantee the safety and reliability of every product delivered to market.China Pet Foods and its subsidiaries have obtained a wide range of internationally recognized certifications including ISO 9001
(Quality Management) ISO 22000 (Food Safety Management) ISO 14001 (Environmental Management) HACCP (Hazard Analysis
and Critical Control Points) GMP (Good Manufacturing Practice) and BRCGS Global Standard for Food Safety among others. In
total the Company has passed 19 major global certifications along with official registrations in several developed markets including
the United States Japan Canada Australia and the European Union. As one of the most comprehensively certified pet food
companies in China these credentials reflect a high level of confidence in the Company’s quality management systems and product
consistency. More importantly they also provide a solid foundation of quality assurance and credibility as the Company continues
to expand its presence in both domestic and international markets.The core themes of SMETA (Sedex Members Ethical Trade Audit) include labor standards health and safety environmental impact
and business ethics. BSCI (Business Social Compliance Initiative) audits focus on areas such as legal compliance freedom of
association and collective bargaining non-discrimination fair compensation working hours workplace safety prohibition of child
and forced labor as well as environmental protection and safety.China Pet Foods obtained both SMETA and BSCI certifications early on underscoring its status as an internationally credible and
socially responsible enterprise. These certifications affirm the Company’s capability to fulfil global orders and maintain a positive
corporate reputation. More importantly they reflect the Company’s commitment to ethical and responsible business practices
– both in collaboration with clients and throughout the supply chain – and its ongoing efforts to uphold social responsibility
throughout the course of its development.Since its founding China Pet Foods has remained true to its original aspiration and philosophy “Pets are our friends and part of ourfamily”. Guided by this belief the Company is dedicated to providing healthy nutritious and delicious pet food to pets around the
world while continuing to support the healthy standardized and high-quality development of China’s pet food industry.China Pet Foods Honored with the
"Six Ingredient Excellence Award"
The Companion Animal Food Ingredients Conference is one of the most prominent events in China’s
pet food industry dedicated to promoting innovation and advancement in pet food ingredients. It
serves as a vital platform for fostering collaboration between domestic and international enterprises
and is widely recognized as a key forum for leading industry players to exchange ideas and showcase
their achievements. In April 2024 the fifth Companion Animal Food Ingredients Conference was held
at the Yangzhou Conference Centre. The event welcomed representatives from the agricultural trade
departments of several embassies and consulates as well as senior figures from leading pet food
companies in China and abroad who gathered to explore new avenues for international cooperation.Owing to its rigorous quality control and outstanding manufacturing standards China Pet Foods
received the highest number of votes and was honored with one of the Conference’s most prestigious
awards - the “Six Ingredient Excellence Award.” This recognition highlights the Company’s industry
leadership and the broad acknowledgment of its comprehensive capabilities.YANTAI CHINA PET FOODS 29 / 30
4.R&D Strength
For 27 years China Pet Foods has remained true to its founding belief that “Pets are our friends and part of our family”. Guided by
this philosophy and a commitment to consumer value the Company continues to explore new frontiers in pet health and nutrition
on a global scale. With a focus on meeting the nutritional needs of pets through every stage of life and across all feeding and care
scenarios the Company’s innovation journey continues to evolve. Milestones include: the establishment and growth of China’s
first garden-style pet testing base; the launch of a new R&D building; the expansion of a global expert advisory network; a joint
initiative with the Feed Research Institute of the Chinese Academy of Agricultural Sciences to co-develop industry standards for
pet food ingredients; the integration of AI motion capture and big data analytics to study pet behavior; and recognition at the 5th
Companion Animal Food Ingredients Conference with the “Six Ingredient Excellence Award”. Every step we take is grounded in care 301 15 21 265
and science - to ensure that every bite enjoyed by pets around the world is both nutritionally sound and safe.Over the past three years China Pet Foods has independently initiated more than 20 R&D projects with three approved at the
provincial level. The Company has led the development of over ten key scientific outcomes several of which have addressed For more than 20 years the R&D center at China Pet Foods has focused on market-driven innovation developing
industry gaps and contributed to the sustainable growth of China’s pet food sector. To date the Company holds 301 national new products with an emphasis on nutrition health and science - helping to shape emerging trends in the pet food
patents including 15 invention patents and has been recognized for several consecutive times as a National High-Tech Enterprise.industry. The Company’s research team includes over 150 professionals with backgrounds in food science veterinary
Looking ahead it will continue to increase investment in R&D using innovation to drive industrial upgrades and deliver safer
healthier food for pets around the world. medicine animal health and nutrition and is supported by a panel of nationally recognized advisors from the United
States Germany Canada New Zealand and China.Testing Center
China Pet Foods’ Testing Center with a total investment exceeding 15 million
yuan stands as the highest-standard testing facility in China’s pet industry. It is
equipped with three main areas: the Physicochemical Laboratory Microbiology
Laboratory and Instrumental Analysis Room.The Center utilizes advanced equipment including liquid chromatography-
mass spectrometers and Kjeldahl nitrogen analyzers and is staffed by a team of
highly educated and qualified professionals. It holds accreditation from CNAS
(China National Accreditation Service for Conformity Assessment) ensuring its
testing capabilities meet national laboratory standards with results recognized
worldwide.Pet Nutrition and Health Research Institute
China Pet Foods × Institute of Feed Research CAAS: China Pet Foods CNIF and CLF：
Strategic Cooperation Agreement Officially Signed Strategic Cooperation Agreement Officially Signed
Pet Evaluation Center
Spanning 10000 square meters the Pet Nutrition and Health Research In November 2024 China Pet Foods formally entered into a In March 2025 China Pet Foods entered into strategic
Institute features dedicated experimental breeding quarantine and outdoor strategic partnership with the Institute of Feed Research of partnerships with China National Research Institute of Food
activity areas making it the first garden-style pet evaluation base in China.The Institute currently houses over 300 experimental dogs and cats from more Chinese Academy of Agricultural Sciences (CAAS). As a leading & Fermentation Industries (CNIF) and China Leather &
than 30 breeds. All of our “new” products undergo a six-month long feeding institution in animal nutrition and feed science since its Footwear Research Institute (CLF). The collaboration focuses
trial before market release to ensure pets' acceptance of the product and the founding in 1991 CAAS has brought together top-tier talents on the innovative application of core technologies - such as
comprehensiveness of its nutritional content. and developed extensive expertise in research technical functional peptides and collagen - in the pet food sector.outreach and policy development contributing valuable Together the partners aim to drive scientific innovation and
scientific insight for the advancement of this field. Through industrial upgrading while jointly exploring a new integrated
Pet Nutrition and Health Research Center this collaboration China Pet Foods will draw on CAAS’s model of technology industry and social responsibility in
scientific resources and talent network to further strengthen China’s pet food industry.The Pet Nutrition and Health Research Center offers comprehensive testing services for its R&D capabilities and technical strength - injecting fresh
pets providing valuable data that drives the Company’s research and development efforts.The Center includes facilities such as biochemical and routine testing laboratories sterile momentum into innovation across the pet food sector.rooms immunology labs and ultrasound areas as well as pathology rooms all equipped As the partnership deepens China Pet Foods and the
with instruments made by globally recognized names such as American IDEXX five-
part differential hematology analyzer biochemical analyzer blood gas analyzer and urine Institute of Feed Research of CAAS will leverage their
analyzer; American BioTek ELISA microplate reader; Italian Esaote vet ultrasound equipment respective strengths to collaborate closely on key areas such
Puxi UV-Vis spectrophotometer and Germany Leica microscope. Through health testing
the Center assesses various factors such as the pet’s gut microbiome antioxidant capacity as nutritional balance safety and traceability and process
immune system liver and kidney functions cardiac function blood glucose and lipids. This optimization. Together they aim to advance the development
comprehensive health analysis ensures the well-being of pets while developing high-quality
products that better meet their nutritional and health needs. and implementation of agricultural industry standards and set
a benchmark for the transformation and upgrading of the pet
food sector.YANTAI CHINA PET FOODS 31 / 32
5.Robust Risk Resilience
In recent years accelerating geopolitical shifts coupled with slowing global growth
and rising inflation have placed the world economy in a period of profound
adjustment. Against this backdrop of historic transformation international
uncertainty has grown markedly and businesses now face increasingly complex
and overlapping risks. Escalating trade barriers the threat of technological
decoupling and the convergence of traditional economic and non-traditional
security challenges all demand greater strategic resilience. Amid deep shifts in this
global governance landscape the ability to manage risk and adapt with agility
has become a critical competitive strength - and a prerequisite for a company’s
survival and growth.Regarding the global supply chain China Pet Foods has significantly strengthened its risk
resilience through a globally distributed production model. In addition to large-scale production
bases in China the Company operates factories in the United States New Zealand Canada and
Cambodia. This international footprint enhances its ability to manage unexpected disruptions
and regional risks while meeting the needs of local markets and ensuring stable supply to
customers worldwide.The Company’s commercial footprint is equally extensive with products sold in 85 countries across five continents.Its domestic business has grown rapidly particularly in self-owned brand segments where independently managed
operations have scaled significantly. Compared to the industry average the Company shows notably lower reliance on
any single customer or business line - further reinforcing the stability and risk resilience of its operations.YANTAI CHINA PET FOODS 33 / 34
Accreditations Corporate HonorsYANTAI CHINA PET FOODS 35 / 36
ESG
Governance SystemYANTAI CHINA PET FOODS 37 / 38
Material Topic Management and Assessment
Commitment to Sustainable Development
During the reporting period China Pet Foods carried out a systematic assessment of ESG material topics to identify
China Pet Foods actively supports the United Nations Sustainable Development Goals the issues most relevant to the Company’s operations and stakeholders. The aim was to provide a sound basis for
(SDGs) and has embedded sustainability into its corporate strategy. the development of ESG plans and corresponding actions. To ensure comprehensive coverage and well-grounded
prioritization the Company followed a structured process that included:
The Company has set clear internal targets and detailed action plans to advance ESG
practices across all levels of its operations. With a strong sense of environmental 1. Reference to Authoritative Standards and Guidelines:
responsibility a firm commitment to social accountability and a focus on improving China Pet Foods initially screened ESG topics with reference to a range of domestic and international standards
governance China Pet Foods continues to contribute to the global sustainability agenda - including the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 4.0)
demonstrating both determination and practical action in response to this worldwide call. the General Framework for Corporate Sustainability Reporting (CASS-ESG 6.0) the Global Reporting Initiative’s
Sustainability Reporting Standards (GRI Standards) China’s national standard Guidance on Social Responsibility
Reporting (GB/T 36001-2015) and the SDG Compass: Guide for Business Action. These frameworks helped ensure
alignment with international best practices and regulatory expectations.ESG Governance Structure 2. In-depth Stakeholder Engagement:
China Pet Foods collected feedback on ESG topics from key stakeholders - including customers employees
China Pet Foods is committed to establish an efficient and integrated ESG governance structure that shareholders suppliers government agencies and the general public - through a variety of channels such as surveys
extends from the board of directors to functional departments and individual employees. The Board written responses conference calls and interviews. Combined with input from the Board Strategy Committee this
Strategy Committee serves as the central body for ESG oversight and is responsible for providing process provided a multidimensional view of stakeholder expectations and concerns.strategic guidance and ensuring that ESG principles are embedded in top-level decision-making.
3. Industry Trends and Internal Risk Assessment:
To support implementation the Company has formed a dedicated ESG working group tasked The Company benchmarked ESG practices against domestic and international peers and examined developments
with preparing and releasing the annual ESG report evaluating performance identifying risks and in sectors such as IoT and semiconductors. These insights together with internal operational and strategic
opportunities and developing improvement plans. The group promotes effective execution through considerations informed the evaluation of ESG-related risks and opportunities and helped identify topics critical to
cross-departmental coordination. mid-to-long-term business development.Department managers communicate the directive of the Strategy Committee and ESG working group to
all employees ensuring that sustainability goals - such as energy conservation and emissions reduction 4. Materiality Assessment and Prioritization:
- are reflected in daily work. Employees regularly log relevant data and report it to their supervisors. A materiality matrix was used to assess ESG topics based on two dimensions: their impact on business development
These records not only underpin ESG disclosures but also support review and continuous improvement and their importance to stakeholders. The results were reviewed by the ESG working group before being submitted
of the Company’s ESG efforts. to the Board Strategy Committee for validation and final prioritization.YANTAI CHINA PET FOODS 39 / 40
Stakeholders Communication and Response Channels Key Concerns Our Responses
ESG Governance Structure and Functions
Legal operation Tax compliance
Board of ESG ESG Governments / Supervision and inspection
tax compliance legal operation
Directors Working Groups Supportive Units reporting work reports economic contribution safe production
Regulators seminars and research safe management environmentalenvironmental protection protection
1. Define the Company’s 1. Implement the Company’s ESG strategy and 1. Act as the resource management
ESG strategy and objectives. objectives organizing and coordinating ESG efforts liaison for ESG
across departments. work across Company development
2. Identify and oversee departments. Shareholders / Shareholder meetings transformation and reform Improve profitability
ESG-related risks and 2. Organize the identification of ESG-related risks performance briefing profitability information transparency
Investors information disclosure timely communication opportunities that and opportunities across various units preliminarily cost management 2. Assist in daily communication information disclosure strengthen management
significantly impact the review results and report findings to the Board. executing relevant technological innovation
business. ESG tasks based
3. Draft ESG policies related topics phase-specific on the ESG
3. Make decisions on major plans and implementation proposals. Working Group’s Supply chain management
ESG-related matters instructions and Suppliers / Public tender procedures
standard operation Provide quality services and products
integrated platforms fair competition fulfill contracts and uphold trust
including but not limited to 4. Oversee the collection and compilation of ESG- the department’s Partners supplier evaluation system compliance with contracts
ESG management systems related data prepare ESG reports and related responsibilities. service quality supplier management and access
and ESG reports. documents. payment terms
4. Supervise the 5. Communicate with consulting and rating Products and services Fair and transparent
implementation of ESG agencies organize ESG business training and track compliance procurement Seminars risk management reasonable prices
development directions and ESG policy requirements and trends. Customers customer visits contract fulfillment ensure supply
strategic goals. satisfaction surveys integrity strategic cooperation
6. Summarize issues and achievements in ESG quality management negotiations
work provide timely feedback to the Board and
offer recommendations for improvement.Financial Business performance Feedback on business Business negotiations operational risks performance
Institutions visitor receptions loan repayment timely repayment of loans
ESG Stakeholder Engagement
Employee rights Compensation guarantee
Employee representative career advancement employee training
China Pet Foods places high importance on active and close engagement with stakeholders. Through well- Employees meetings democratic review compensation and benefits welfare benefits
established communication mechanisms and diverse information channels the Company listens to stakeholder views meetings seminars occupational health democratic management
questionnaire-based surveys
ensures transparency and participation and works to strengthen mutual understanding and trust. In light of its integrity improve work environment emergency assistance and conditions
evolving business and external environment the Company has identified seven core stakeholder groups: customers
employees developer communities suppliers investors government bodies and the general public/media.It closely monitors their priorities and concerns and responds in a timely manner through various channels to align Public outreach activities Community / field trips Community collaboration Poverty alleviation
key issues with stakeholder expectations market trends and strategic opportunities. By embedding stakeholder research social welfare charity donations
expectations into its strategic planning and daily operations China Pet Foods continues to enhance its sustainability Public visitor receptions rural revitalization ecological protection
management and work collaboratively toward shared development goals.YANTAI CHINA PET FOODS 41 / 42
Sound Governance
and Steady OperationsYANTAI CHINA PET FOODS 43 / 44
1.Sound Governance Structure
Since its founding China Pet Foods has established a robust corporate governance system in accordance with the
Company Law Securities Law and the Code of Corporate Governance for Listed Companies. The Company has
gradually developed and implemented a full set of internal governance rules including the Rules of Procedure for the
General Meeting of Shareholders Rules of Procedure for the Board of Directors Rules of Procedure for the Board of
Supervisors Rules of Procedures for Independent Directors Working Rules for the President Working Rules for the Audit Committee Compensation and Appraisal Committee
Board Secretary as well as detailed guidelines for the operation of each specialized board committee. In 2024 the Audit Committee convened four In 2024 the Compensation and Appraisal
meetings and discharged its duties in accordance Committee held two meetings. During the year
This framework supports a governance structure that aligns with regulatory expectations for listed companies. It with applicable regulations and provisions. The it reviewed and verified compensation matters
ensures coordination and checks and balances among the Company’s governing bodies including the shareholder Committee conducted in-depth reviews of the concerning the Company’s directors and senior
decision-making supervisory and executive functions. The General Meeting of Shareholders the Board of Directors Company’s financial position and operational management and provided guidance on
the Board of Supervisors and the management team operate independently and in accordance with the law each performance examined the periodic reports executive compensation strategy and planning.fulfilling its respective rights duties and responsibilities - thereby safeguarding shareholder interests and supporting assessed both routine and special audits carried The Committee also reviewed the Company’s
compliant operations. out by the internal audit department and evaluated employee stock ownership plan evaluating
the design and implementation of internal control its feasibility incentive effectiveness and
systems. The Committee provided effective potential impact on the Company’s future
oversight and guidance on financial management development - ensuring that the plan
and internal governance. effectively motivates employees fosters
creativity and contributes to the Company’s
sustained and stable growth.Strategy Committee Nomination Committee
In 2024 the Strategy Committee convened one The Nomination Committee determines
meeting. Taking into account global and domestic selection criteria for directors and senior
economic trends and the specific dynamics management based on the Company’s
of the industry the Committee conducted a evolving development needs while actively
Executive Management thorough analysis of the Company’s operational identifying and evaluating qualified
performance growth prospects and the risks and candidates to support future leadership
opportunities shaping the sector. It offered targeted pipeline. In 2024 the Committee held
recommendations to support the execution of the one meeting during which it fulfilled its
Company’s development strategy helping ensure responsibilities by reviewing the qualifications
the soundness of long-term planning and decision- of proposed candidates for board and
making. executive positions.Its work provided strategic guidance that
contributed to the Company’s continued stable
growth.YANTAI CHINA PET FOODS 45 / 46
3 In accordance with applicable laws - including the Company Law Securities Law - and regulations and provisions China Pet Foods has established a standardized corporate governance structure comprising the General Meeting of Shareholders the Board of Directors and its specialized committees the
Board of Supervisors and the management team to ensure the robust and
effective implementation of governance policies and operational procedures.The Company has developed well-defined systems for internal controls
7 risk management performance incentives accountability mechanisms and information disclosure. Together these elements form a modern governance framework marked by institutional independence mutual checks and balances
among the shareholder decision-making supervisory and executive functions
and a clear delineation of roles and responsibilities.
5 The General Meeting of Shareholders serves as the Company’s highest authority and the primary channel through which shareholders exercise their legal rights. Meetings are convened in strict accordance with the Articles of Association and the Rules of Procedure for the General Meeting ensuring shareholders' rights to
information and participation are fully protected.All supervisors performed their duties in strict accordance with relevant laws and regulations In 2024 the Company held three shareholder meetings - one annual and two
including the Company Law Securities Law and the Guidelines No. 1 of Shenzhen Stock extraordinary - during which 15 resolutions were reviewed and approved.Exchange for Standardized Operation of Main Board Listed Companies and the Company’s
Rules of Procedure for the Board of Supervisors. They enhanced their professional capabilities All directors have performed their duties in compliance with relevant laws
through targeted training programs—including SZSE supervisory training and policy briefings regulations and provisions including the Guidelines No. 1 of Shenzhen Stock
on regulatory developments—and exercised comprehensive oversight of corporate governance Exchange for Standardized Operation of Main Board Listed Companies the
financial performance and internal controls contributing to the continued improvement of the Company’s Rules of Procedure for the Board of Directors and the Rules of
Company’s governance framework. Procedures for Independent Directors. Directors actively attended meetings of
the Board and the General Meeting of Shareholders participated in training and
The Board of Supervisors held five meetings during the reporting period and approved 22 stayed current with legal and regulatory developments. They have fulfilled their
resolutions. Supervisors fulfilled their responsibilities in full providing oversight of the Company’s responsibilities with integrity diligence and a strong sense of duty.compliance financial operations use of raised funds related-party transactions external
guarantees and internal control systems. Attendance was 100%. During the reporting period the Board of Directors convened seven meetings
and approved 34 resolutions covering topics such as periodic reporting
In addition the Board ’s specialized committees continued to fulfill their respective employee stock ownership plans profit distribution and related-party
responsibilities in advancing corporate governance. transactions. Director attendance was 100%.YANTAI CHINA PET FOODS 47 / 48
To ensure the clear transmission consolidation and effective management of material
matters and to support timely truthful accurate and complete disclosure while
safeguarding the legitimate rights and interests of the Company and its investors - China
Pet Foods has implemented a Material Matters Reporting Policy. The policy defines the
scope of reporting personnel procedures and reportable items covering areas such
as related-party transactions outbound investments management of raised funds
guarantees and material risk events. In the past the complexity and cross-functional
2.Information Disclosure and Investor Relations nature of these matters often led to delays or inconsistencies in communication affecting
the timeliness and accuracy of disclosures. The introduction of this policy has resolved key
challenges by establishing a clear reporting process for material matters leading to more
The Company’s stable operations are underpinned by the support of its investors. China timely disclosures. It has also helped standardize business procedures across departments.Pet Foods regularly discloses key operational information actively engages with investors
responds to inquiries and addresses concerns. These efforts help strengthen the Company’s In addition China Pet Foods has designated China Securities Journal Shanghai Securities
corporate image and reputation enhance its visibility and recognition and build long-term News Securities Times and Securities Daily as its official disclosure outlets. The Company
brand value. proactively discloses in a timely manner all information that may materially affect
shareholders or other stakeholders ensuring equal access to information for all investors.In 2024 a total of 112 announcements were published through CNINFO and other official
Timely and Accurate Disclosure channels including 108 ad hoc disclosures and 4 periodic reports. The timeliness rate for
material disclosures reached 100% and the Company incurred no penalties related to
China Pet Foods places strong emphasis on disclosure compliance. The Company strictly adheres to information disclosure.the Company Law Securities Law the Administrative Measures for Information Disclosure by Listed
Companies and other applicable laws and regulations as well as the Rules Governing the Listing of
Shares on the Shenzhen Stock Exchange and relevant self-regulatory guidelines. To support this the
Company has established a comprehensive internal system that governs the full disclosure process
- from information collection and review to disclosing and archiving. Supporting this system are key
in-house policies such as the Information Disclosure Management Policy and the Insider Information Following each annual semi-annual and quarterly report
Registration and Management Policy which clearly define materiality thresholds disclosure standards China Pet Foods engages with both institutional and retail
and approval procedures ensuring all disclosures are compliant and properly governed. investors in a proactive timely and transparent manner -
through online platforms as well as virtual and in-person
The Company fulfills its disclosure obligations in strict accordance with legal and regulatory roadshows.requirements. It maintains clear lines of accountability upholds the principles of timeliness and fairness The Company also holds regular investor education
and ensures that all disclosed information is truthful accurate and complete. Confidentiality protocols sessions and performance briefings and responds
and insider registration procedures are rigorously enforced to prevent insider trading and protect promptly to questions submitted via the SZSE Investor
market integrity. Relations Interactive Platform ( 互动易 ).YANTAI CHINA PET FOODS 49 / 50
Active Investor Engagement
These visits give investors a more intuitive understanding of the Company’s production scale
technological capabilities and operational efficiency. By engaging directly with products they develop
a more complete and nuanced view of the business from the consumer’s perspective. This kind of in-
depth hands-on engagement enables China Pet Foods to share clear and transparent information with
investors - fostering deeper trust and stronger investor confidence.The Company’s successful fundraising efforts and rising market valuation in recent years reflect not only
its strong business performance but also the quality of its investor relations. Maintaining constructive
engagement with investors is essential to fostering a stable market environment. To this end China Pet
Foods has built a communication platform defined by openness dialogue and transparency—helping
investors gain a clearer understanding of Company’s business and contributing to a healthy mutually
beneficial ecosystem.Commitment to Shareholder Returns
China Pet Foods places strong emphasis on delivering value to its investors and is committed to
providing sustained stable cash dividends. By consistently sharing the Company’s operational
results with shareholders it seeks to enhance their sense of participation in the Company’s
growth. In accordance with the Company Law the Securities Law and the CSRC’s No. 3 Guideline
for the Supervision of Listed Companies – Cash Dividend Distribution of Listed Companies the
China Pet Foods regularly hosts its “Inside a Listed Company” series designed to offer investors a well-rounded and Company has established and implemented a clear profit distribution policy. In 2024 it carried out
immersive engagement experience. During each event the Company’s management team communicates openly and dividend distributions for the 2023 financial year and the first three quarters of 2024 totaling RMB
professionally - sharing insights into its strategic direction operational performance and past performance. The goal 143044638.56 in cash dividends.is to give investors a clear structured view of the Company’s development journey.Confident in its long-term prospects and recognizing its intrinsic value China Pet Foods launched a
As part of the experience investors are invited to visit key facilities including production workshops the Pet Share Repurchase Plan to strengthen investor confidence protect shareholder interests enhance its
Nutrition and Health Institute and the R&D Center. There they observe automated production lines running with long-term incentive mechanism and encourage stronger engagement from management and key
efficiency and see how strict quality control measures are embedded at every stage of the manufacturing process. personnel. The initiative is also part of the Company’s broader efforts to support steady and sustainable
From raw materials to finished products the entire production journey is made visible - offering a direct view into growth. The Plan was reviewed and approved at the 26th meeting of the third Board of Directors on
the Company’s strong production capabilities and uncompromising quality standards. Scientific staff also share their March 28 2023 and subsequently first extraordinary General Meeting of Shareholders on April 14 2023.latest research findings and innovative development philosophies reflecting the Company’s ongoing commitment In 2024 the Company repurchased a total of 1278700 shares through centralized bidding transactions
and strength in advancing pet nutrition and health. with a total value of RMB 29159746.00 (excluding transaction fees).YANTAI CHINA PET FOODS 51 / 52
The Company’s governance practices extend well beyond the four areas outlined above.From the independent operation of the Board of Directors the Board of Supervisors
and the General Meeting of Shareholders to the ongoing refinement of internal controls
the deployment mechanism of investment and financing decisions and the shareholder
return system - China Pet Foods operates has carried out extensive planning and
management based on legal frameworks and practical business needs.Our vision is “To be the leading enterprise in the global pet food industry” - a goal
that continues to guide our development. As the pet economy expands into a vast blue
ocean China Pet Foods is well-positioned to chart an even broader course backed by
3.Investor Protection and Education robust governance strong foundations and proven operational capabilities.
Safeguarding consumer rights is closely tied to public well-being and a vital part of
serving the public interest. It reflects a people-centered development philosophy and
serves as a cornerstone for the healthy sustainable growth of the financial sector. As
both a contributor and advocate in Yantai’s financial landscape China Pet Foods actively
advanced investor education and protection efforts in 2024. The Company worked toboost public confidence in financial services and championed the values of responsible In May 2024 China Pet Foods actively participated in the “5.15oversight and finance that serves the public good. National Investor Protection Publicity Day” campaign held under
the theme “Protecting Investors Shandong in Action.” Using its
official website and other channels the Company encouraged
both investors and employees to strengthen risk awareness and
adopt a rational investment mindset.YANTAI CHINA PET FOODS 53 / 54
4.Standardized Internal Control Framework 5.Fulfilling Tax Obligations with Responsibility
China Pet Foods recognizes the vital role of tax compliance in supporting national governance and social progress.Guided by the Enterprise Income Tax Law of the People’s Republic of China the Company has put in place a
dedicated Tax Management Policy. In day-to-day operations it maintains strict oversight over tax-related processes
- from invoice control to account reconciliation - ensuring every step is handled with rigor and consistency. At the
same time the Company continues to refine its tax planning framework balancing short-term arrangements and
long-term strategic considerations to optimize tax management comprehensively.The Company remains alert to potential risks and has established a sound system for monitoring and managing tax-
related matters ensuring its operations remain stable and compliant. Committed to fulfilling its tax obligations in full
and on time China Pet Foods provides solid support for the stable growth of national fiscal revenues - contributing
to public investment in infrastructure social welfare and technological innovation. Through concrete actions
the Company brings its corporate responsibility to life helping to drive high-quality economic growth and social
harmony while underscoring its value as a corporate citizen in advancing national strategies and serving the broader
good.In 2024 the Company and its subsidiaries contributed over RMB 120 million in taxes.Operating in a dynamic business environment China Pet Foods faces a range of uncertainties in its daily operations. To mitigate the
risk of occupational fraud - whether from internal personnel or external partners - and to safeguard the interests of the Company
and its shareholders the Company formally joined the China Enterprise Anti-Fraud Alliance in February 2022 and became a member
of its Working Committee. The Alliance is a non-profit organization committed to fostering a clean business environment through
platform collaboration resource integration and data sharing. It helps establish workplace misconduct records and enhances its
members’ anti-fraud capabilities. Founding members include industry leaders such as Alibaba Country Garden Midea SF Express
and Vanke. Today the Alliance comprises more than 950 member companies over half of which are A-share listed firms. It offers
services such as resource pooling blacklist sharing and support for cross-regional fraud investigations. Joining the Alliance marks
an important step in China Pet Foods’ ongoing efforts to strengthen risk management improve fraud prevention mechanisms and
protect the legitimate rights and interests of the Company and its shareholders.As a leading enterprise in China’s pet food industry China Pet Foods is committed not only to business excellence but also to
fostering a clean honest and transparent operating environment. Through cross-industry collaboration and knowledge-sharing
the Company aims to fulfill its broader social responsibilities while supporting healthy and rapid growth.Internally China Pet Foods has implemented a range of anti-fraud measures including the Anti-Fraud Management
Policy Whistleblower Protection and Incentive Policy and Policy on the Reporting of Gifts and Monetary Benefits - fostering a
robust institutional firewall against misconduct and reinforcing a culture of integrity. To further embed anti-fraud awareness and
guide employee day-to-day behavior visual reminders are displayed throughout the Company. These include the Ten Integrity
Guidelines in office areas the Bid Opening Code of Conduct at tender sites and whistleblowing posters at exit and entry points
across all facilities. Collectively these measures help strengthen employee vigilance against fraud and bribery and support a
corporate culture anchored in ethical conduct. In doing so the Company continues to lay the foundation for sound compliant and
high-quality growth.Moreover China Pet Foods has placed strong emphasis on internal audit and made solid progress in advancing a
comprehensive audit program. In 2024 audit activities covered a wide range of critical operational areas - from
capital management to digital process development. Key reviews included audits of idle fixed assets internal controls
over monetary funds and sales operations. These efforts have strengthened the Company’s internal management
and risk controls while reaffirming its commitment to social responsibility. The audit program continues to support
the Company’s long-term competitiveness and sustainable development.YANTAI CHINA PET FOODS 55 / 56
Green Development
Shared ProsperityYANTAI CHINA PET FOODS 57 / 58
1.Environmental Compliance and Management Green is at the heart of who we
China Pet Foods strictly complies with all applicable environmental laws and regulations including are — it anchors our commitment
the Environmental Protection Law of the People’s Republic of China Environmental Impact
Assessment Law of the People’s Republic of China Water Pollution Prevention and Control for sustainable development and
Law of the People's Republic of China Air Pollution Prevention and Control Law of the People's
Republic of China and the Law of the People's Republic of China on the Prevention and Control of defines our promise to the future.Environmental Pollution by Solid Wastes.The Company continues to improve its environmental management system to protect ecosystems
enhance resource efficiency promote cleaner production and advance sustainable development.The Company is certified to the ISO 14001 Environmental Management System and has been
awarded the certificate.YANTAI CHINA PET FOODS 59 / 60
Environmental Impact Assessment and Emissions Control Air Emissions Management
All new projects undergo environmental impact assessments in accordance with the Environmental China Pet Foods manages air emissions in full compliance with national environmental standards
Impact Assessment Law and the Regulations on the Administration of Construction Project including the Emission Standard of Air Pollutants for Boilers (GB 37/2374-2018) the Integrated Emission
Environmental Protection. The Company adopts low-energy high-efficiency environmental protection Standard of Air Pollutants (GB16297-1996) and the Emission Standards for Odor Pollutants (GB 14554-
equipment to minimize project-related impacts on surrounding areas. In line with the Regulations on 1993). The Company uses natural gas - one of the cleanest available fuels - for its steam boilers and
the Administration of Permitting of Pollutant Discharges we strictly manage pollutant emissions and applies low-nitrogen combustion technology to reduce emissions from the source and during operation
discharges to ensure that both the concentrations and total volumes remain within the permitted levels. minimizing the release of air pollutants.Odorous gases from the wastewater treatment plant are fully enclosed collected and treated using a
combined water-spray and microwave photo-oxidation process before being discharged in accordance
with regulations. In addition the Company has taken targeted measures to manage both organized and
fugitive emissions generated during production. High-efficiency treatment facilities and equipment are
used to reduce pollutant discharge. During the reporting period all air emissions remained well within
regulatory limits.Solid Waste Management
Wastewater Management China Pet Foods guided by Xi Jinping’s Thought on Ecological Civilization and committed to green
China Pet Foods operates three fully enclosed wastewater treatment facilities with daily processing development adopts a holistic approach to solid waste management. The Company actively promotes
capacities of 1500 tons 500 tons and 100 tons respectively. Using the AOAO treatment process reduction recovery and safe disposal through sound policies source control sorting and reuse and
wastewater from production is carefully treated and discharged only after meeting the requirements digital tracking. A comprehensive prevention and control framework is in place to address solid waste
of GB/T 31962-2015 – Water Quality Standards for Discharge to Municipal Sewers. pollution. Green procurement is practiced from the source. All general industrial waste and hazardous
waste is handled by qualified third-parties in compliance with regulations ensuring end-to-end waste
To ensure compliance the discharge outlet is fitted with a standardized sampling port and online oversight - from cradle to grave.monitoring systems that track COD ammonia nitrogen total phosphorus total nitrogen pH and flow
rate. These systems are connected to environmental authorities at various levels allowing for real- In terms of household waste the Company provides clearly labeled bins and works with local sanitation
time data sharing and regulatory oversight. A qualified third-party agency is engaged to compare and services to ensure daily collection and harmless disposal. It also promotes the “Clean Plate” campaign
verify the accuracy of monitoring instruments providing an extra layer of assurance. Furthermore encouraging the use of reusable tableware and proper handling of kitchen waste. Hazardous waste is
the Company enhanced its treatment system with the addition of a phosphorus removal system - reported in full compliance with requirements via the Shandong Provincial Platform for Solid Waste and
protecting water resources and helping to safeguard the environment where every drop matters. Hazardous Chemical Management covering waste types volumes destinations storage and disposal.YANTAI CHINA PET FOODS 61 / 62
2.Clean Production 3.Solar Photovoltaic Project
In October 2021 the Communist Party of China Central and the State
As a manufacturer of pet food China Pet Foods generates wastewater and air emissions Council joint released the Working Guidance for Carbon Dioxide Peaking
as part of its operations. In line with the Notice on Further Promoting the Review of and Carbon Neutrality in Full and Faithful Implementation of The New
Cleaner Production in Key Industries ([2020] No. 27) issued by the Department of Science Development Philosophy. The Guidance called for the integration of
and Finance General Office of the Ministry of Ecology and Environment and the Notice carbon peak and carbon neutrality into the broader framework of national
on 2024 Mandatory Cleaner Production Audit List ([2024] No. 48) issued by the Shandong economic and social development - a major strategic move toward green
Provincial Department of Ecology and Environment the Company carried out a cleaner production energy efficiency and cleaner manufacturing. In alignment
production audit between May and November 2024. with these national priorities China Pet Foods has made the dual-carbon
goals as a key part of its cost-reduction and efficiency-improvement
During this period the Company implemented 12 cleaner production initiatives - 11 strategy.classified as low- or no-cost and one as medium- to high-cost. Total investment reached
RMB 1.65 million generating estimated annual economic benefits of RMB 1.43 million. The The Company has invested actively in solar photovoltaic projects.program delivered notable environmental and economic gains and further strengthened Covering a total rooftop area of over 30000 square meters the two-
the Company’s commitment to cleaner production aligning its performance with best phase solar initiative offers a combined installed capacity of 3.6 MWp.practices across the domestic industry. Since 2021 the system has generated a cumulative 13.41 million kWh of
electricity reducing carbon dioxide emissions by more than 11000 tons. China Pet Foods photovoltaic land
4.Use of Biodegradable Packaging Materials
Beyond its efforts in energy conservation China Pet Foods
also fulfills its environmental responsibilities through
sustainable material choices.Traditional packaging materials widely used in the market
often contribute to environmental pollution and are difficult
to recycle due to the inseparability of mixed materials. To
address this the Company has adopted biodegradable
composite materials for selected products. These materials
represent a significant advancement in both degradability
and recyclability and their use marks a key step in China
Pet Foods’ commitment to environmentally responsible
business practices.YANTAI CHINA PET FOODS 63 / 64
5.Environmental Training and Awareness Promotion Environmental Emergency Drills
Environmental Training
To strengthen its ability to respond to unexpected environmental incidents China Pet Foods has put in place a formal
emergency response plan which is filed with the relevant environmental authorities. In 2024 the Company carried
out a series of regular drills - ranging from hazardous waste spills to fire scenarios. These exercises are designed
not only to improve on-the-ground response but also to connect environmental response protocols with overall
workplace safety procedures ensuring that both plans work hand in hand when it matters most.To strengthen its environmental management and fulfill its responsibilities as a corporate steward of the ecological
environment China Pet Foods conducted regular trainings and awareness campaigns on environmental regulations Environmental Information Disclosure
environmental risk identification and mitigation and the management of wastewater exhaust emissions and
solid waste. These sessions not only enhanced employee awareness but also supported the Company’s long-term Environmental disclosure is a core component of effective corporate
sustainability efforts. environmental management. In accordance with the Administrative
Measures for Legal (ESG) Disclosure of Enterprise Environmental
Environmental Compliance Information issued by the Ministry of Ecology and Environment
and Management Clean Production China Pet Foods publishes annual updates on its website. These
1 2 cover key areas including company profiles environmental management practices pollutant generation treatment and
discharge and emergency response. All information is disclosed in
an accurate and timely manner enabling effective public oversight
Green Development and supporting continuous improvement in our environmental practices.
5 3 Behind every figure and milestone lies our steadfast
commitment to China’s dual-carbon goals. With a
4 Solar Photovoltaic Project long-term perspective on sustainability we remain Environmental Training and Awareness Promotion dedicated to lightening the planet’s burden - one
step at a time for a brighter and more sustainable
Use of Biodegradable future.Packaging MaterialsYANTAI CHINA PET FOODS 65 / 66
Greener World
Smarter FutureYANTAI CHINA PET FOODS 67 / 68
1.Canada Facility
At its Canada facilityC China Pet Foods has tranAsformed regulatory compliance into a source of competitive advantage by systematically building out four key pillars: safety ethics natural ingredients and low carbon footprint. These efforts not only reflect the brand’s core values but also provide Nas a credible foundation foAr the Company’s DA
sustainability-driven consumer marketing.Carbon Neutrality and Sustainable Development Food Safety and Quality
The Canada facility actively supports carbon neutrality goals including working with The Canada facility has obtained a series of internationally recognized certifications and building on this foundation
suppliers to implement net-zero emissions programs. Its production processes fully comply established a robust system to ensure end-to-end compliance in food safety and quality management.with Canada’s Environmental Protection Act and the 2030 Emissions Reduction Plan. With
measures such as waste-to-resource initiatives and optimized low-carbon logistics the 碳中和与 All core suppliers are certified under the Global Food Safety Initiative (GFSI) including standards such as BRC (Global
plant maintains a carbon footprint well below industry averages. Wastewater and exhaust 食品安全与 Standard Food Safety) going well beyond basic GAP (Good Agricultural Practices) requirements to ensure global
emissions are treated in accordance with applicable standards with discharge levels 可持续发展 compliance from sourcing to production.significantly below legal limits. 质量认证
The facility holds the highest BRC certification rating - AA+ with a perfect score - and has also passed the SMETA social
responsibility audit meeting international benchmarks across four dimensions:
Labor rights: Strictly prohibits child labor and ensures fair pay and reasonable working hours.Human Rights and Business Ethics Health and safety: Provides a safe work environment with comprehensive protective measures.The facility places a strong emphasis on workplace safety employee well-being Environmental protection:
environmental responsibility and business ethics and transparency. In terms of Maintains discharges and emissions well below regulatory thresholds to minimize ecological impact.workplace safety it is dedicated to providing a clean secure environment equipped Business ethics: Enforces anti-corruption protocols and ensures supply chain transparency.with advanced safety measures and ensures employees receive regular training on
health and safety to mitigate potential risks. On environmental protection the facility 人权与 This certification system has secured the facility’s entry into global supply chains significantly enhancing its
strictly controls pollutant emissions during production keeping them well below reputation and competitiveness while reducing legal risks and the likelihood of lost orders. By streamlining
regulatory thresholds and continuously advances eco-friendly practices to minimize 商业道德 management processes and minimizing the cost of repeated audits the facility has successfully integrated
its environmental impact. Regarding business ethics and transparency the facility has 绿色供应链及 into international supply networks reinforcing client trust and positioning itself as a strategic model for both
implemented a comprehensive anti-corruption framework to ensure transparency in sustainable development and commercial growth.all business transactions. Upholding fairness justice and compliance it also ensures 原材料安全
supply chain transparency by regularly assessing suppliers and advocating for industry
best practices that support sustainable development. Green Supply Chain
and Raw Material Safety
China Pet Foods collaborates with certified suppliers
to ensure that the raw materials they provide are pure
uncontaminated free from unnecessary additives
and entirely safe for pets. This approach safeguards
the quality and safety of pet food right from the very
beginning.In addition the facility has implemented a comprehensive
anti-corruption mechanism across its operations to
ensure the transparency of all commercial dealings
upholding the principles of fairness justice and
compliance in every aspect of its business. The Canadian factory strengthens employee safety through regular fire
drills simulating fire alarms evacuation procedures firefighting equipment
operation and providing comprehensive training on hazardous materials
handling and identifying escape routes. The company integrates safety
training into its career development framework prioritizing employee safety
and fulfilling corporate responsibilities to safeguard employees' health rights.YANTAI CHINA PET FOODS 69 / 70
2.New Zealand Facility
Rooted in the phNilosophy of living in harEmony with nature thWe New Zealand facility builds differentiated sustainable competitiveness through three core pillars: animal welfare low-carbon production and community engagement. The goal is to provide consumers with products that deliver both ethical value and high-qu ality assuZrance. EALAND
Animal Welfare Environmental
Community
Management Engagement and Grass-Fed
Certification and Resource and Fair
Efficiency Practices
The facility adheres to some of the world’s highest animal welfare The New Zealand facility employs an industrial-grade closed- The facility strictly complies with New Zealand’s
standards. All cattle and sheep are grass-fed and free-range year-round loop water recycling system achieving a water-saving rate of Employment Relations Act and Health and Safety
on open pastures in compliance with the New Zealand Farm Assurance over 70% - setting a benchmark for water management in the at Work Act ensuring fair wages mandatory safety
Programmes (NZFAP) requirements for grass-fed livestock. Pasture global meat processing sector. The carbon footprint of red training and provision of personal protective equipment
resources are sustainably managed and animals follow a natural grain- meat production in the New Zealand facility is significantly (PPE). Employees are encouraged to participate in
free diet. lower - 30% to 50% below the global average - thanks to the external skill-building programs such as the Good Yarns
selective breeding of low-methane sheep and the carbon workshops and are supported in developing interests
New Zealand is also among the countries with the lowest antibiotic sequestration of pasture-based grazing. Low stocking outside of work. Firmly rooted in the local community
usage globally where therapeutic antibiotics are administered only densities rotational grazing practices and strict nitrate the facility donates pet food products regularly to
under veterinary supervision. The facility meets the Gold Standard for management further support the facility’s environmental animal welfare organizations operates an on-site shop
Animal Health and Welfare under NZFAP Plus and complies with animal performance effectively reducing nitrate runoff and offering exclusive discounts for residents and prioritizes
welfare standard jointly endorsed by NZFAP Plus and British Veterinary protecting water quality. In terms of clean energy the newly sourcing raw materials from local farmers - reinforcing
Association (BVA). These practices ensure livestock are raised in a natural commissioned facility is set to be equipped with a solar its commitment to social responsibility and contributing
environment – resulting in healthier meat. (Grass-fed beef and lamb for photovoltaic system to further cut emissions. to regional economic development.instance are known to contain higher levels of Omega-3 fatty acids.)
Meanwhile its packaging system is built on a closed-loop
Full traceability is enabled through the Ministry for Primary Industries’ recycling model effectively reducing waste and driving
ED System which records data across the entire supply chain - from progress toward zero-waste operations.pasture and raw material transportation to processing and export.Product information is publicly accessible via official websites. All major
meat suppliers are NZFAP Plus members and are certified under schemes
including SMETA FSSC BAP and ISO 14001. The facility regularly
discloses details on production processes waste treatment andcommunity supporting programs - fulfilling its commitment to “traceableto the slaughterhouse transparent to the consumer” and meeting
global customers’ expectations for quality ethics and environmental
responsibility.YANTAI CHINA PET FOODS 71 / 72
3.U.S. Facility
As a leading producer of pet treats American Jerky takes its social responsibility seriously and remains
firmly committed to environmental compliance and sustainable development. Through a range of
innovations and best practices it works to reduce the environmental footprint of its operations and Green Supply Chain and
contribute to the green transformation of the industry. Raw Material Safety & Sustainability Carbon Emissions and Climate Action
1.Raw Material Procurement Standards
American Jerky’s environmental and social responsibility efforts go beyond compliance with U.S. Strict Supplier Screening and Certification: All suppliers must meet both international and
national food safety standards with particular attention to the specific requirements of pet Carbon Neutrality Goals: In response to climate change American
environmental regulations - they reflect the Company’s broader commitment as a responsible corporate food safety. We work exclusively with certified partners to ensure that all raw materials are Jerky has set clear targets for carbon neutrality. The facility is
citizen. Through ongoing impUrovements in resource recovery en.ergy efficiencSy sustainable sourcing .Aclean additive-free and safe for anim.al health. constructed using high-performance insulation materials to
waste reduction carbon neutrality and green supply chains the facility has significantly reduced its Sustainable Sourcing Policy: The facility gives priority to sourcing raw materials from minimize thermal exchange and energy loss. Rooftop solar panels
environmental impact. These efforts not only lay a solid foundation for future sustainable development farms and production sites that meet environmental standards align with sustainable
generate clean energy significantly reducing carbon emissions.development requirements and are certified under the MSC (Marine Stewardship Council) The facility also conducts regular energy audits and continuously
but also promote greener practices and ethical sourcing across the industry. sustainable fisheries program. improves energy efficiency aiming to lower its carbon footprint
through ongoing conservation efforts.
2.Raw Material Traceability System
End-to-End Traceability: All raw materials are fully traceable through a dedicated tracking Green Production Facility: The plant has invested in energy-
system that records each batch from procurement and transport to final use. This ensures efficient machinery and optimized its manufacturing processes to
transparency of origin and full compliance with sourcing standards. In the event of any reduce energy consumption. Partial reliance on renewable energy
quality concerns the system allows for rapid tracing back to the source - minimizing supports the goal of building a low-impact environmentally
Labor Rights potential food safety risks.responsible production base.Ingredient Safety Control: All incoming raw materials undergo rigorous testing for multiple
Fair Compensation and Health and Safety safety indicators including heavy metals and pesticide residues to ensure both regulatory
Working Hours: American Jerky Safe Working Environment: Environmental compliance and product safety.ensures that all employees The Company is committed to Protection
receive fair compensation and Waste Management and Resource Recoveryproviding employees with a clean Business Ethics and 3.Animal Welfare and Ethical Slaughter
work reasonable hours in full Pollutant Emission Control: The safe and well-equipped working Transparency Animal Welfare Certification: We work exclusively with certified slaughterhouses that meet
compliance with international Company maintains strict control environment. Modern protective recognized animal welfare standards. These facilities ensure that all animals are handled Waste Sorting and Recycling: The facility enforces a strict waste
labor standards. The Company over pollutant emissions and Anti-Corruption Policy: We have equipment is in place and humanely and in environmentally responsible ways minimizing unnecessary suffering and classification policy. All production waste is sorted and recycled by
strictly prohibits child labor and discharges across all stages of established a comprehensive anti-employees receive regular training reducing stress during transport. category to maximize resource utilization.forced labor. production ensuring that all corruption framework to ensure on health and safety practices Animal Welfare Program: A stringent supplier auditing and certification process is in place
discharge levels remain well below transparency in all business
to ensure they are prepared to to ensure that all partners adhere to best practices in animal welfare throughout their Recyclable Packaging Materials: Packaging is designed with
Protection of Employee Rights: regulatory limits and minimizing dealings upholding principles of manage potential risks. operations. efficiency in mind - minimizing unnecessary materials using
The Company prioritizes employee the impact on the surrounding fairness integrity and regulatory environmentally friendly and recyclable options. American Jerky
welfare and provides a safe ecosystem. compliance.Health Monitoring and Protection: 4.Food Safety and Quality Control System encourages suppliers to adopt recycled content actively reducing
supportive working environment. In addition to routine safety Global Food Safety Certification: The American Jerky facility is certified under internationally single-use packaging across the supply chain.A robust labor policy framework Commitment to Green Supply Chain Transparency: We measures the Company conducts recognized food safety standards such as the BRC Global Standard Food Safety ensuring
and comprehensive training Development: Guided by a are committed to maintaining regular occupational health checks that all products meet rigorous food safety requirements across global markets. Circular Economy in Practice: By partnering with recycling
system are in place to ensure philosophy of green production transparency across our to safeguard employee well-being HACCP and GMP Systems: The facility fully implements the Hazard Analysis and Critical firms American Jerky ensures that all recoverable materials are
employees' rights are respected we continuously refine our supply chain. Regular supplier and promote long-term health. Control Points (HACCP) system and is certified under Good Manufacturing Practices (GMP) effectively recycled and reused reducing dependence on natural
and upheld. environmental practices to assessments are conducted guaranteeing that every stage - from raw material sourcing to final production - complies resources.reduce the Company’s ecological to ensure alignment with with international food safety standards.footprint and promote greener sustainability standards and to
operations. promote best practices within the
industry.Efficient Water Use: American Jerky continues to improve water efficiency by optimizing production schedules and adopting high-efficiency
low-consumption cleaning equipment. For landscaping the facility uses drip irrigation systems to minimize unnecessary water use.Wastewater Treatment and Water Resource Protection: The plant is equipped with advanced wastewater treatment facilities that ensure all
discharged water meets or exceeds the standards set by the U.S. Environmental Protection Agency (EPA) and applicable state regulations.These measures help prevent contamination of surface and groundwater in full compliance with strict environmental laws.Ongoing Wastewater Monitoring: Regular monitoring is conducted to assess wastewater quality. Discharge metrics are compared against
California and other state-level environmental standards with operational adjustments made as needed to prevent environmental risk and
uphold regulatory compliance.Water Resource ManagementYANTAI CHINA PET FOODS 73 / 74
People First:
Building a Fulfilling WorkplaceYANTAI CHINA PET FOODS 75 / 76
1.Overall Employee Profile 2.Compensation and Promotion Policies
Employees are the foundation of enterprise growth and the driving force behind China Pet Foods’ ambition to
become a global leader in the pet food industry. The Company has long placed a strong emphasis on safeguarding
employee rights fostering professional growth and promoting overall well-being. It has established a sound
compensation system and structured career development pathways while encouraging a workplace culture of
humanistic care. Through diverse learning platforms cultural and recreational activities and external training and
exchange programs the Company takes concrete steps to safeguard its employees’ rights and interests - creating a
supportive environment for them to grow and thrive alongside the business.During the reporting period China Pet Foods strictly adhered to the Labor Contract Law and other applicable
national laws and regulations in implementing its employee compensation policies. The Company established
compliant systems for social insurance and housing fund contributions and developed a wage structure based on job
roles and skill levels. It also implemented a performance-based incentive mechanism designed to enhance employee
welfare while ensuring internal equity. With compensation as the cornerstone the Company fosters a working
environment that balances efficiency and fairness - encouraging motivation stability and individual initiative.Employees are supported in realizing their professional potential and personal value. Staying true to its people-
oriented philosophy China Pet Foods remains committed to aligning human capital development with enterprise
growth enabling employees to realize their personal value and thrive together with the Company as it continues its
rapid growth.Based on the varying roles functions and development needs across departments China Pet Foods prepares
an annual training plan tailored to its workforce. Training formats include in-house sessions external programs
onboarding training promotion-focused workshops reading initiatives and sessions led by part-time trainers.Covering areas such as management technical skills professional conduct workflow and corporate culture the
program is designed to foster a highly skilled and professional workforce.YANTAI CHINA PET FOODS 77 / 78
3.Workplace Safety 4.Professional Skills Development
Workplace safety is the lifeline of the Company’s development—and a shared responsibility for all. China Pet Foods Talent is the Company’s most valuable asset. China Pet Foods actively fosters a culture of lifelong learning to help
places workplace safety at the core of its operations continuously enhancing employee awareness and emergency employees adapt to a fast-changing market and rising performance expectations. Through a combination of policies
response capabilities through a structured multi-dimensional training system. In 2024 the Company focused on two and structured programs the Company provides platforms for continuous development and upskilling. Guided by the
key pillars: hands-on fire drills and a three-tier safety education program for new hires. Fire drills are designed to belief that “lean begins with mindset and improvement starts with me” the Company promotes an environment of
ensure all employees can respond evacuate and act within critical timeframes - “respond in one minute contain in innovation and learning. Its regular “Smart Classroom – Lean Series” has become a key training initiative. In 2024 athree.” At the same time the Company strictly enforces a three-tier safety training system for all new employees—at total of 12 sessions were successfully held embedding lean thinking into daily learning and operations and inspiring
the company department and role level—ensuring 100% of new staff are fully qualified before taking up their posts. employees to engage in improvement with creativity and enthusiasm.These efforts reinforce a strong and reliable safety culture throughout the organization.CASE
Master-Apprentice Program
On-the-Job Coaching and Skills Transfer
Smart Classroom – Lean Series
China Pet Foods “Departure Flights” Program China Pet Foods Executive MBA Program
The company organized and conducted fire safety drills.YANTAI CHINA PET FOODS 79 / 80
5.Celebrating the 26th Anniversary of China Pet Foods
(1998-2024 The 26th Anniversary of China Pet Foods
6.Employee Benefits Policy
China Pet Foods marks every major holiday with care and celebration. From New Year’s Day and Spring Festival
to Lantern Festival Dragon Boat Festival and International Women’s Day the Company organizes thoughtful
appreciation activities and distributes festive gifts - demonstrating its commitment to humanistic care and corporate
culture. Festive items such as glutinous rice balls rice dumplings and eggs are carefully prepared to reflect each
occasion. These gestures bring a sense of warmth and belonging allowing employees to enjoy the spirit of the
season amid their daily work.Beyond holidays China Pet Foods also organizes a variety of activities throughout the year - such as family outings
company anniversaries Teacher’s Day tributes and marathon events. These initiatives strengthen the sense of
belonging among employees and their families helping individuals realize their full potential in this relaxed and
supportive environment. At the heart of it all is the Company’s people-first philosophy rooted in the idea of “family”.Here the Company strives to ensure that every China Pet Foods family member find satisfaction and meaning in what
they do – and in return bring more energy and pride to their daily roles.YANTAI CHINA PET FOODS 81 / 82
Supply Chain Annual Conference
Mr. Jiang Yishan Director and Executive Vice President of China Pet Foods delivered the on-site address.China Pet Foods Annual Conference
Mr. Hao Zhongli Founder and CEO of China Pet Foods gave the keynote speech at the event.
7.Staying True Striving Forward:
2024 China Pet Foods Recognition Ceremony and Cultural Gala
Time carries our dreams and the years etch our achievements. As the Year of the Snake approached China Pet Foods
hosted two major annual events: the 2024 Supply Chain System Annual Review and Commendation Conference and
the “Staying True Striving Forward” 2024 Annual Recognition Ceremony and Company Gala.Staying true to our values is the path to long-term success and passion fuels the spirit of youth. At China Pet Foods
we move forward at full speed meeting every challenge with determination. In 2024 387 outstanding individuals
and 44 exceptional teams were honored on stage. United by the theme “Staying True Striving Forward” they turned
dedication into action and passion into purpose - together writing a vibrant new chapter in the Company’s story.YANTAI CHINA PET FOODS 83 / 84
8.A Warm Journey Home: China Pet Foods in Action 9.Pet-Friendly Spaces Warmer Workdays
During the 2024 Spring Festival China Pet Foods placed people at the heart of its mission. As part of its employee To foster a warm and welcoming office environment - and to strengthen employees’ sense of happiness belonging
care and corporate responsibility efforts the Company launched the “Homebound with China Pet Foods” public and emotional connection with animals while highlighting the role of pets as both family and friends - China Pet
welfare initiative. A total of 13 large chartered buses were arranged safely carrying 450 employees back to their Foods introduced a pilot policy titled Trial Policy on Pets in the Workplace. Under this initiative employees are
hometowns. The program underscored the Company’s enduring commitment to employee well-being and its allowed to bring pets to the office provided they do not disrupt the work environment. The Company recognizes
attentiveness to individual needs - especially during China’s most cherished traditional holiday. By ensuring a smooth that pets are not only beloved companions at home but also bring vitality comfort and a sense of calm into
safe timely journey home China Pet Foods enabled hundreds of staff members to reunite with their families and the workplace. Interacting with them during a busy day can help ease stress spark creativity and promote
celebrate the joy of togetherness. communication among colleagues. This thoughtful policy reflects the Company’s care for its people. It aims to create
a workplace filled with love empathy and inclusion where everyone feels encouraged to unlock their potential and
10.Employee Representative Conference
China Pet Foods embraces the philosophy of democratic management and active employee participation.The Company regularly convenes employee representative conferences conducted in line with formal procedures.These meetings provide a structured forum to discuss key issues ranging from business strategy and operational
management to employee rights and corporate culture. Representatives are encouraged to speak on behalf of the
wider workforce - bringing forward their thoughts concerns and needs and helping turn collective insight into a
meaningful force that drives the Company forward. At the 2024 sessions employee representatives voted to approve
four internal policies: the revised Employee Handbook the SFA Store Visit Management System for sales staff the
Employee Conduct and Disciplinary Reference Table and the Irregular Working Hours Policy.YANTAI CHINA PET FOODS 85 / 86
Protection of
Supplier Customer
and Consumer RightsYANTAI CHINA PET FOODS 87 / 88
1.Supplier Management
China Pet Foods upholds the principles of transparency fair competition integrity and accountability in all aspects
of supplier management. Through well-developed institutional frameworks on-site supplier audits and dynamic
oversight mechanisms the Company embeds sustainability into its supply chain risk management practices. These
efforts continue to strengthen the procurement and supplier management system - ensuring product and service
quality while safeguarding the rights and interests of customers and consumers.
1. Responsible Procurement in Practice
The Company has developed a series of internal regulations to guide responsible procurement including the Supplier
Management Policy Supplier Onboarding Procedure Bidding Management Policy Supplier Evaluation Procedure
and Supplier Audit Procedure. These policies and procedures standardize procurement processes and reinforce 2.Customer and Consumer Rights Protection
compliance in purchasing activities.At China Pet Foods the core value that stands first is “Customer” - a principle the Company has upheld consistently
2. Robust Supplier Management throughout its development. With a top-down approach and coordinated execution China Pet Foods continues
China Pet Foods has established a rigorous supplier onboarding process setting clear standards that cover to strengthen full-process management and consumer rights protection. The Company remains committed to
qualifications review production capacity assessment product quality inspection and commercial credibility. These delivering products and services that are high-quality safe and dependable - earning lasting trust and support from
measures ensure that new suppliers meet foundational requirements and demonstrate long-term growth potential. consumers.Throughout the cooperation period the Company conducts both scheduled and unscheduled evaluations of supplier
performance. Assessment criteria include delivery timeliness product quality consistency and responsiveness of To foster long-term partnerships the Company has established robust communication mechanisms with customers
after-sales service. On-site inspections are also carried out to gain first-hand insights into suppliers’ operational maintaining open and friendly exchanges. Through multiple channels it stays attuned to evolving customer needs
practices. and concerns while sharing timely market intelligence and emerging trends. Leveraging its strengths in resources
Based on the results of these assessments a comprehensive supplier exit mechanism has been put in place. Suppliers and technology the Company organizes regular exchange sessions to help customers optimize their products and
that repeatedly fail to meet performance benchmarks pose serious quality risks or engage in fraudulent conduct services - delivering shared value.are promptly removed - ensuring the integrity of the supply base. Dynamic management measures are also applied
to further strengthen procurement and supplier management practices and safeguard product and service quality
ultimately protecting the interests of customers and end consumers.In addition the Company requires all suppliers to sign a Letter of Integrity which explicitly prohibits any form of
bribery or improper dealings with procurement staff. This reinforces fair and transparent procurement practices
supports cost control and enhances procurement quality.
3. Supply Chain Digitization
China Pet Foods continues to enhance its digital supply chain infrastructure by upgrading its SRM and CRM systems.These efforts aim to strengthen information management and accelerate the integration of data-driven and
digitalized operations. The goal is to build a unified information exchange platform between the Company and its
suppliers—as well as among internal supplier networks.The platform integrates key modules such as master data management supplier management performance China Pet Foods also holds regular distributor conferences using a variety of formats to reach and engage its
evaluation quality control procurement collaboration and contract management. By streamlining these functions partners. These events enhance mutual understanding deliver mutual value unlock collaboration potential and lay a
the system significantly improves operational efficiency and ensures full transparency and traceability across every stable foundation for shared growth. In addition the Company conducts customer satisfaction surveys from time to
stage of supplier management. time to listen closely to customer feedback to make targeted improvements to collaboration details.YANTAI CHINA PET FOODS 89 / 90
Public Relations and
Social Welfare ProgramsYANTAI CHINA PET FOODS 91 / 92
To promote the healthy and sustainable
growth of the pet industry the inaugural
G300 China Pet Industry Leadership Summit
was successfully held at the Hangzhou
International Expo Center. The event brought
together leading enterprises scholars and
brand executives from across the globe
offering a high-level forum to examine current
industry dynamics and explore emerging
trends contributing insights on the long-
term high-quality development of the sector.At the Summit Mr. Hao Zhongli Founder and
Chairman of China Pet Foods was recognizedas a “2023–2024 Influential Figure in China’sPet Industry”.
1.Rooted in Real Economy
Committed to Regional Growth
China Pet Foods recognizes that its success is closely tied to the support of the broader
society. Since its founding beyond - pursuing business excellence the Company has
actively fulfilled its social responsibilities—providing disaster relief supporting those in
need and contributing with care and compassion. While maintaining steady business
growth both the Company and its subsidiaries have remained committed to fulfilling
their social responsibilities. In 2024 China Pet Foods paid over RMB 100 million in taxes
contributing meaningfully to national revenue and local economic development. The
Company also played an active role in job creation offering thousands of long-term
positions and hundreds of temporary jobs thereby promoting economic vitality and social
stability in the regions where it operates.In recognition of its strong overall performance and outstanding contribution to the In 2024 the Yantai Municipal Committee of the Communist Party of China and the Yantai Municipal People’s Government convened thelocal economy China Pet Foods was honored as a “Leading Enterprise in Economic Conference on Accelerating the Multiplication of Advanced Manufacturing Enterprises. At the event 83 enterprises recognized under the city’sDevelopment” by the Laishan District in 2024. Lawful and honest tax payment is a “Multiplication Plan” were formally honored - including China Pet Foods. Since the launch of the Plan these enterprises have increased their
core reflection of corporate credibility - and the strongest business card a company share in Yantai’s output from industrial enterprises above designated size by 5.3 percentage points. Though they account for less than 10% of
can hold. Over the years China Pet Foods has earnestly implemented national tax laws all large-scale industrial enterprises they contribute over 60% of total output.and policies treating tax compliance and integrity as a lifeline of its operations. By
consistently honoring its tax obligations and upholding the principles of tax integrity As a Yantai-based enterprise China Pet Foods has long pursued innovation and continuous progress. It has received multiple honors from
and accountability the Company continues to play an active role in supporting regional the Yantai municipal government and continued to play an active role in advancing the city’s high-quality economic growth. Its development
economic growth. outcomes have been widely recognized by government authorities.YANTAI CHINA PET FOODS 93 / 94
In November 2024 to fully implement the guiding principles of the 20th National Congress of the Communist Party 2.Bringing Chinese Brands to the World
of China and the Second and Third Plenary Sessions of its 20th Central Committee and to advance the "Big Food"
concept while promoting the transformation and quality-driven growth of the food industry Shandong Provincial
Committee of the Communist Party of China and Shandong Provincial Government issued the Notice on Commending Since its founding in 1998 China Pet Foods has remained firmly committed to a global development strategy. With
Organizations and Individuals with Outstanding Performance in Advancing the High-Quality Development of an open and outward-looking approach the Company continues to expand its international footprint - bringing the
Shandong’s Food Industry in 2023. A total of 40 organizations and 60 individuals were recognized for their exemplary brilliance of “Intelligently Made in China” to the global market. The Company owns several flagship brands including
contribution. Among them Mr. Hao Zhongli Founder and Chairman of China Pet Foods was named an Outstanding WANPY ZEAL and TOPTREES. Its products are exported to 85 countries across five continents with self-
Contributor to the High-Quality Development of Shandong’s Food Industry. This honor not only acknowledges owned brands now sold in 73 markets marking the Company’s solid efforts in advancing the international presence
Chairman Hao’s personal achievements but also affirms China Pet Foods’ long-term commitment and contributions of Chinese pet food brands. Looking ahead China Pet Foods will continue to champion high-quality opening-up in
to advancing the high-quality development of the pet food industry. the pet industry. Through premium products and professional service the Company is determined to showcase the
strength of Chinese brands on the world stage.
2024 “Premium Pet Food Made in Shandong” Distinguished Enterprise
China Pet Foods actively supports the development
of urban sports and cultural life. As title sponsor of
the “China Pet Foods · WANPY Cup” 9th Laishan
Half Marathon and Chinese Zodiac Marathon – Year China Pet Foods Received the
of the Dragon Edition the Company underscored its "Six Ingredient Excellence Award"
deep connection to local development. Organized by The Companion Animal Food Ingredients Conference is one of the most
the Laishan District People’s Government of Yantai prominent events in China’s pet food industry dedicated to promoting
the event drew over 7000 runners to its 21-kilometer innovation and advancement in pet food ingredients. It serves as a vital
half marathon and 8-kilometer mini run. Blending platform for fostering collaboration between domestic and international
athletic performance with local cultural promotion enterprises and is widely recognized as a key forum for leading industry
the race marked a milestone in Laishan District’s players to exchange ideas and showcase their achievements. China Pet
30th anniversary celebrations. For China Pet Foods it Foods received the highest number of votes and was honored with one ofthe Conference’s most prestigious awards - the “Six Ingredient Excellencewas also a successful demonstration of how “sportsAward.” This recognition highlights the Company’s industry leadershipmarketing and localized engagement” can extend
and the broad acknowledgment of its comprehensive capabilities.brand reach and deepen community ties. “China Pet Foods · WANPY Cup”
9th Laishan Half Marathon and Chinese Zodiac MarathonYANTAI CHINA PET FOODS 95 / 96
China Pet Foods is equally committed to talent
development. The “WANPY Cup” 2024 National Light
Industry Vocational Skills Competition - 4th National Pet
Industry Skills Competition - was held in Chengdu. As the
chairing unit of the Pet Industry Branch under the China
Gift & Leisure Products Association China Pet Foods
3.Driving Industry Development has served as the title sponsor for four consecutive
and Fulfilling Corporate Responsibility years. The Company firmly believes that excellence in
talent is forged through competition nurtured through
skills-based growth and guided by a sense of national
As a leader within industry associations holding key positions such as president vice president and vice chairman purpose. Only along this path can the industry cultivate a
China Pet Foods not only adheres to international quality standards for the pet food industry but also plays an active highly skilled and professional workforce. This pursuit of Group photo at the closing ceremony of the “WANPY Cup”
role in advancing China's pet food sector toward standardized and healthy development. The Company contributes 2024 National Light Industry Vocational Skills Competition excellence fuels ongoing innovation and ever-improving
the 4th National Pet Industry Skills Competition
valuable scientific insights to industry associations and supports the establishment and refinement of domestic service quality - laying the foundation for a healthy
standards for pet food making its due contribution to the sustainable growth of China’s pet food industry. well-regulated and high-quality future for the industry.At the China Pet Nutrition and Health Forum jointly 4.Public Welfare and Animal Rescue
organized by Pet Fair Beijing and the China Pet Nutrition
Guidelines Dr. Zhang Can of the Pet Nutrition and
Health Research Institute China Pet Foods was invited China Pet Foods has always stayed true to its original aspiration and remains committed to providing high-qualityto share an overview of the Institute’s work including food for pets. The Company continues to move forward with the belief that “Every life is precious and deservesits studies on gut microbiota in cats and dogs reflecting respect and care.” As a Vice President Member of the China Small Animal Protection Association the Company has
the Company’s active role in advancing pet food R&D long been dedicated to the rescue and welfare of stray animals. Every month China Pet Foods donates pet food to
and promoting pet health. local animal rescue shelters to support their care and protection efforts. Company teams also engage directly with
shelter staff to understand the animals’ daily dietary needs health conditions and ongoing rescue plans - ensuring
that every donation would precisely address the needs of each stray animal improve their living conditions and
deliver warmth and hope to lives in need.As the chairing member of the Pet Industry Branch of
the China Animal Agriculture Association China Pet
Foods continues to deepen its expertise in the pet
food sector and participates in the development of
industry standards. At the 3rd Pet Industry Conference
Dr. Nie Shijian Council Member of the Association and
Chief Scientist at China Pet Foods shared insights on
“Data-Driven Analysis of Pet Digestive Issues” further
promoting knowledge exchange and collaboration
across the industry.YANTAI CHINA PET FOODS 97 / 98
Driving Industrial Upgrading
Through InnovationYANTAI CHINA PET FOODS 99 / 100
In 2024 the Company’s NPTC Intelligent Wet Food
Production Base was honored with the NZCBIA
301 15 21 265 Excellence Awards - 2024 Special Contribution Award in recognition of its outstanding engineering efficiency and
meticulous innovation in construction which set a new
benchmark in industrial construction. In August 2024
China Pet Foods as a leading player in the industry took
Technological innovation is the engine of enterprise competitiveness - and the driving force behind industry center stage to receive the Special Contribution Award
progress. As a leading player in the sector China Pet Foods draws on the expertise of its Pet Nutrition and from the Prime Minister of New Zealand - demonstrating
Health Research Institute where it conducts foundational research in pet nutrition explores scientifically the strength of Chinese smart manufacturing on the
balanced formulations and contributes to the development of industry standards. Smart manufacturing is also global stage.gathering pace. With digital intelligence enabling end-to-end coordination the Company is steadily improving
production efficiency and product quality. With a global outlook China Pet Foods actively engages in international Dr. Sabrina Tian a Chinese-
collaboration across academia research and industry - integrating cutting-edge technologies and helping build a New Zealand scientist
worldwide innovation ecosystem. Innovation thrives on deep foundations—and the results speak for themselves. brings fresh momentum to
China Pet Foods’ research
and development efforts.Scientific - Collaboration: China Pet Foods and CAAS
Join Forces to Shape the Future of the Pet Industry
Sustained accumulation leads to breakthrough success and our innovative achievements stand
as testament to our capabilities. As of April 2 2025 China Pet Foods has been granted 301
national patents including 15 invention patents and has been consecutively recognized as a
National High-Tech Enterprise for multiple years. Moving forward China Pet Foods will continue
to increase R&D investment driving industrial advancement through technological innovation
to deliver safer and healthier food for pets worldwide.YANTAI CHINA PET FOODS 101 / 102
A New Era of Digital Transformation From Laboratory Animals to the Ethics of Life:
for China’s Pet Industry China Pet Foods’ Answer to a Moral Imperative
In December 2024 China Pet Foods signed a strategic cooperation agreement with SAP becoming
the first company in China’s pet industry to hold a formal signing ceremony with the global software
leader. Leveraging SAP’s strengths in enterprise digitalization resource integration and operational
management the partnership will support China Pet Foods in upgrading its core business systems and
jointly building a best-in-class information infrastructure for the pet industry further supporting its In an era where AI and life sciences increasingly intersect the welfare of laboratory animals is no longer
global expansion. a vague moral question - it has become a matter of enforceable institutional frameworks. On Pet Day
in April 2025 China Pet Foods took concrete action and upheld pet welfare through both institutional
Under the agreement the two parties will engage in deep collaboration across the Company’s core and ethical commitments - officially unveiling the first Laboratory Animal Ethics Committee in pet food
business areas advancing digital upgrades in ERP cloud platforms supply chain planning and industry.human resources management. China Pet Foods will use this opportunity to establish a unified digital
management system across the Group meeting the needs of its diversified business development and This marked a profound dialogue on life’s welfare and scientific ethics. In navigating the space between
setting a new benchmark for digital transformation in the industry. research innovation and ethical responsibility China Pet Foods offered its answer. The launch of the
Committee is not only a forward-looking institutional initiative but also an extension of the philosophy
This cooperation marks a significant milestone in the Company’s digital journey. Looking ahead China the Company has long upheld: “Pets are our friends and part of our family”. As scientific exploration
Pet Foods will continue to deepen collaboration with industry partners expand new business frontiers continues China Pet Foods holds fast to a clear conviction: Technology may know no limits but ethics
through digitalization and create greater value through higher-quality products and services ushering must always have heart – for respect for life is the only path to the future.in a new era of digitalization for the pet food industry in China.YANTAI CHINA PET FOODS 103 / 104
Product Safety and QualityYANTAI CHINA PET FOODS 105 / 106
End-to-End Quality Management:
Safeguarding Every Bite
As a leading player in China’s pet food sector China Pet Foods treats product quality as its lifeline. We have
built a full-chain quality management system that spans raw materials production and testing adhering to
human food-grade safety standards to protect the health of every pet.Strict Raw Material Controls:
Ensuring Quality from the Source
Building First-Class Factories on Chinese Soil China Pet Foods has established industry-leading standards for the inspection of fresh meat ingredients enforcing comprehensive oversight across supplier qualifications ingredient traceability and nutritional
Creating First-Class Products for Chinese metrics. Each batch of raw materials undergoes rigorous testing for heavy metals veterinary drug residues
and microbial contamination—ensuring full compliance with national standards.Consumers.Chicken is the primary ingredient in most pet food products. Notably four publicly listed white-feather
broiler companies are based in Yantai with the closest located just over 20 kilometers from China Pet
China Pet Foods firmly believes that delivering Foods. This ensures a seamless 24-hour fresh supply chain covering every step from poultry breeding and
release to slaughter pre-chilling packaging cold-chain logistics factory processing and final pet food
exceptional product quality is the rightful production.responsibility of a national brand and the
calling of a brand that represents a great
nation.This alignment - integrating enterprise
development with national strategies - is the
very reason China Pet Foods has emerged as
a leading representative of China’s pet food
industry on the global stage.YANTAI CHINA PET FOODS 107 / 108
Intelligent Manufacturing: Driven by Global Standards Forging Brand DNA
Building Product Excellence Fortifying a Quality Firewall Through a Culture of Quality
China Pet Foods builds and operates its production facilities in strict China Pet Foods holds 19 internationally recognized certifications At China Pet Foods the principle of "quality first" is deeply woven into
compliance with human food-grade standards. Powered by customized including ISO 9001 (Quality Management) ISO 22000 (Food Safety the fabric of its corporate culture. The Company has established a quality
pet food production lines from Bühler (Switzerland) the Company can Management) and ISO 14001 (Environmental Management). The management system that involves every employee breaking down quality
now switch across product types and formulations in just 45 minutes Company has implemented a “three-tier testing” system covering goals to each position and process.allowing flexible manufacturing while minimizing cross-contamination incoming raw materials in-process productions and final products.risks between batches. To support this a dedicated testing center was built with an Its visualized production workflows foster confidence in every stage of
investment of over RMB 15 million. the manufacturing cycle. This unwavering commitment to quality tightly
Parts of the production line utilize pharmaceutical-grade 316L stainless linked to the mission of building a trusted national brand is a core reason
steel piping paired with advanced CIP/SIP (Clean-in-Place/Sterilize- The center is equipped with advanced instruments such as high- why China Pet Foods continues to gain recognition in global markets.in-Place) systems enabling continuous 24-hour production with no performance liquid chromatography-mass spectrometry liquid
hygiene blind spots. Every step of the process is monitored in real time chromatographs atomic absorption spectrometers amino acid
via the MES (Manufacturing Execution System) with key parameters analyzers and Kjeldahl nitrogen analyzers. Over 100 indicators are
automatically recorded and archived—creating a fully traceable tested ranging from nutrients microbes veterinary drug residues and
production history. heavy metals to vitamins amino acids toxins and freshness metrics.YANTAI CHINA PET FOODS 109 / 110
Indices of Guidelines Topics
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—
Sustainability Report (For Trial Implementation)
Dimension No. Topic Corresponding Chapter
1 Climate response
Looking Ahead 2 Pollutant discharge
3 Waste disposal
In 2025 the global business landscape continues to undergo profound shifts. Layered with growing uncertainties 4 Ecosystem and biodiversity protection Green Development
these changes present new challenges for corporate strategy and operations. In response China Pet Foods will Environment
Environmental compliance management
remain firmly committed to its core development strategy: building strong proprietary brands deepening its presence 5 Shared Prosperity
in the domestic market accelerating overseas expansion and steadily advancing its global supply chain layout - all 6 Energy utilization
while maintaining scale in its traditional OEM business. Grounded in its core business the Company will continue tosharpen its product channel brand and operational capabilities. Guided by the philosophy that “Pets are our friends 7 Water resources utilizationand part of our family” and anchored in the values of “Customer Quality Innovation and Responsibility” China 8 Circular economyPet Foods upholds its mission to “Promote the healthy standardized and high-quality development of China’s petindustry”. With this it continues to pursue its vision: to be the leading enterprise in global pet food industry. 9 Rural revitalization Public Relations
10 Social contributions and Social Welfare Programs
In 2025 China Pet Foods will continue to uphold and deepen its development strategy leveraging its strong core
business as a foundation to accelerate innovation and build a truly global supply and sales network. The Company 11 Innovation Driving Industrial Upgrading
will advance its international operations in a steady and purposeful manner expanding into overseas markets with
Ethics of science and technology Through Innovation
region-specific product customization and optimization to boost both brand impact and market share—bringing 12
high-quality pet food to a broader global audience. Globalization of self-owned brands remains a critical pathway to Community 13 Supply chain security Product Safety and Quality
high-quality growth. China Pet Foods will continue to broaden its global footprint by expanding proprietary brand
sales channels abroad and driving deeper breakthroughs in its international strategy. 14 Equal treatment of SMEs Protection of Supplier Customer
15 Product and service safety and quality and Consumer Rights
Meanwhile China Pet Foods continues to deepen its presence in the domestic market. By closely tracking consumer
preferences and market shifts the Company remains committed to building proprietary brands. It continues to invest 16 Data security and customer privacy Product Safety and Quality
in R&D and product innovation strengthen quality and diversify its offerings—positioning itself to meet the rising
17 Employees People First
and increasingly varied demands of pet owners in China. Through these efforts the Company aims to reinforce and
strengthen its leadership in the domestic pet food sector and fully advance its strategy centered around self-owned 18 Due diligence
brands. Sustainability- 19 Stakeholder engagement Sound Governance
related
2025 marks a pivotal year for China Pet Foods. The Company will further refine its strategic layout sharpen core governance 20 Anti-commercial bribery and anti-corruption and Steady Operations
competitiveness expand market share and elevate brand influence paving the way for an even more remarkable
chapter in the year to come. 21 Fair competition
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