深圳市深粮控股股份有限公司 SHENZHEN CEREALS HOLDINGS CO.LTD.ANNUAL REPORT 2024 【April 2025】Section I. Important Notice Contents and Interpretation The Board of Directors the board of supervisors all directors supervisors and seniorexecutives of SHENZHEN CEREALS HOLDINGS CO. LTD. (hereinafter referred to as “theCompany”) hereby confirm that there are no any fictitious statements misleading statements or important omissions carried in this report and shall take all responsibilities individual and/or joint for the reality accuracy and completion of the whole contents.Principal of the Company Wang Zhikai Head of Accounting Lu Yuhe and Head of Accounting Institution (Accounting Supervisor) Lu Chengjun hereby confirm that the Financial Report of Annual Report 2024 is authentic accurate and complete.All Directors have attended the Board Meeting for deliberation of this Report.Concerning the forward-looking statements with future planning involved in the annual report they do not constitute a substantial commitment for investors. Securities Times China Securities Journal，Shanghai Securities Journal and Juchao Website (www.cninfo.com.cn)are the media appointed by the Company for information disclosure. All information of the Company disclosed in the above mentioned media should prevail. Investors are advised to exercise caution of investment risks.The Company has analyzed the risk factors that the Company may exist and itscountermeasures in the report. Investors are advised to read “Prospect for futuredevelopment of the Company” in the report of Section III Management Discussion and Analysis. This report has been prepared in Chinese and English version respectively. In the event of difference in interpretation between the two versions Chinese report shall prevail.The profit distribution plan that was deliberated and approved by the Board Meeting is: based on total share capital of 1152535254 distributed cash bonus of 1.50 yuan (tax inclusive) for every 10 shares 0 share bonus issued (tax inclusive) and no transfer of capital reserve into share capital.Content Section I. Important Notice Contents and Interpret... 2 Section II Company Profile and Main Financial Inde... 6 Section III Management Discussion and Analysis.......11 Section IV Corporate Governance......................30 Section V. Environmental and Social Responsibiliti.. 49 Section VI. Important Events........................ 51 Section VII. Changes in Shares and Particulars abo.. 77 Section VIII. Preferred Stocks.......................84 Section IX. Corporate Bonds..........................85 Section X. Financial Report.......................rence 1. Text of financial statement with signature and seals of legal person person in charge of accounting works and person in charge of accounting institution; 2. Original audit report with seal of accounting firm and signature and seal of the CPA; 3. Original and official copies of all documents which have been disclosed on Securities Times China Securities Shanghai Securities Journal and Juchao Website (www.cninfo.com.cn) in the reporting period; 4. Original copies of 2024 Annual Report with signature of the legal representative.Interpretation Items Refers to Contents SZCH/Listed Company /the Company/ Refers to Shenzhen Cereals Holdings Co. Ltd.Shenshenbao/Shenbao Company Refers to Shenzhen Shenbao Industrial Co. Ltd.SZCG Refers to Shenzhen Cereals Group Co. Ltd Doximi Refers to Shenzhen Shenliang Doximi Business Co. Ltd.Shenzhen Flour Flthe company Refers to Shenzhen Flour Co. Ltd Shenliang Quality Inspection Refers to Shenliang Quality Inspection Co. Ltd.Dongguan Logistics Refers to Dongguan Shenliang Logistics Co. Ltd.Shenbao Huacheng Refers to Shenzhen Shenbao Huacheng Technology Co. Ltd.Hualian Company Refers to Shenzhen Hualian Grain and Oil Trading Co. Ltd.Shenliang Cold Chain Refers to Shenzhen Shenliang Cold Chain Logistics Co. Ltd.Shenliang Property Refers to Shenzhen Shenliang Property Development Co. Ltd.SZCH Big Big Kitchen Refers to Shenzhen Shenliang Big Kitchen Food Supply Chain Co.Ltd Grain and Oil Purchase and Sales Branch Refers to Grain and Oil Purchase and Sales Branch of ShenzhenCereals Group Co. Ltd Dongguan Oil & Food Refers to Dongguan Shenliang Oil & Food Trade Co. Ltd.Shenliang Cold Transport Refers to Shenzhen Shenliang Cold Transport Co. Ltd.Shenshenbao Investment Refers to Shenzhen Shenshenbao Investment Co. Ltd Shenzhen Shenliang Food Refers to Shenzhen Shenliang Food Co. Ltd.Zhenpin Refers to Zhenpin Market Operation Technology Co. Ltd.Wuhan Jiacheng Refers to Wuhan Jiacheng Biotechnology Co. Ltd Shenzhen Agricultural Power Group Co. Ltd. originally Shenzhen Agricultural Power named Shenzhen Food Materials Group Co. Ltd Group/Food Material Group/Food Refers to Shenzhen Food Group Co. Ltd and Shenzhen Fude State Group/Fude Capital Capital Operation Co. Ltd. is the controlling shareholder of the company Agricultural Products Refers to Shenzhen Agricultural Products Group Co. Ltd SIHC Refers to Shenzhen Investment Holdings Co. Ltd.Shenzhen SASAC Refers to Shenzhen Municipal People’s Government State-ownedAssets Supervision & Administration Commission CSRC Refers to China Securities Regulation Commission SSE Refers to Shenzhen Stock Exchange Grant Thornton CPAs Refers to Grant Thornton Certified Public Accountant LLP (SpecialGeneral Partnership) Article of Association Refers to Article of Association of Shenzhen Cereals Holdings Co.Ltd.RMB/10 thousand Yuan Refers to CNY/ten thousand YuanSection II Company Profile and Main Financial Indexes I. Company information Short form for share SZCH Shenliang B Stock code 000019 200019 Short form of share before Shenshenbao Shenbao B change (if applicable) Listing stock exchange Shenzhen Stock Exchange Chinese name of the Company 深圳市深粮控股股份有限公司 Abbr. of Chinese name of the Company 深粮控股 English name of the Company (if applicable) SHENZHEN CEREALS HOLDINGS CO. LTD Abbr. of English name of the Company N/A Legal Representative Wang Zhikai Registrations address 8/F Tower B No.4 Building Software Industry Base South District Science & TechnologyPark Xuefu Rd. Yuehai Street Nanshan District Shenzhen Code for registrations add 518057 The registered address of the Company when listed in 1992 was No.10 Tianbei East Wenjin North Road Luohu District Shenzhen; in 1999 the registered address changed to No.1058 Wenjin North Road Luohu District Shenzhen; in 2002 the registered address changed to 28/F Historical changes of Tower B and C of Bao’an Square No.1002 Sungang Road Luohu District Shenzhen; in 2010 registered address the registered address changed to South half of the 20th floor Tower of Zhuzilin Education and Technology Building Futian District Shenzhen; in 2015 registered address changed to 8/F Tower B No.4 Building Software Industry Base South District Science & Technology Park Xuefu Rd. Yuehai Street Nanshan District Shenzhen Office address 13/F Tower A World Trade Plaza No.9 Fuhong Rd. Futian District Shenzhen Codes for office add. 518033 Company’s website www.slkg1949.com E-mail szch@slkg1949.com II. Person/Way to contact Secretary of the Board Rep. of security affairs Name Chen Xiaohua Chen Kaiyue Liu Muya 13/F Tower A World Trade Plaza No.9 13/F Tower A World Trade Plaza No.9 Contact address Fuhong Rd. Futian District Shenzhen Fuhong Rd. Futian District Shenzhen Tel. 0755-83778690 0755-83778690 Fax. 0755-83778311 0755-83778311 chenky@slkg1949.com E-mail 000019@slkg1949.com liumy@slkg1949.com III. Information disclosure and preparation place Website of the Stock Exchange where the annual report of the Securities Times China Securities Journal Shanghai Securities Company is disclosed Journal Media and website where the annual report of the Company is Juchao Website: www.cninfo.com.cn disclosed Preparation place for annual report Office of the Board of DirectorsIV. Registration changes of the Company Organization code 91440300192180754J On February 18 2019 the company completed the registration procedures of changes in industry and commerce for business scope and other matters. The Changes of main business since listing (if main business has newly increased the modern food supply chain services applicable) such as grain & oil trading processing storage and logistics on the basis of production research and development and sales of food raw materials (ingredients) mainly focused on tea and natural plant deep processing.On September 10 1999 Shenzhen Investment Management Co. Ltd. entered into the Equity Transfer Agreement of Shenzhen Shenbao Industrial Co. Ltd.with Shenzhen Agricultural Products Group Co. Ltd for 58347695 shares of the Company (35% in total shares of the Company) transfer to Shenzhen Agricultural Products Group Co. Ltd with price of RMB 1.95 per share.Shenzhen Agricultural Products Group Co. Ltd became the first majority shareholder of the Company after transfer and procedures for the above equity transfer has completed in June 2003.On April 3 2018 Shenzhen Investment Holdings Co. Ltd. completed the transfer of all of its 79484302 A shares of the company to Fude Capital.After the completion of the equity transfer Fude Capital directly holds Previous changes for controlling shareholders (if 79484302 A shares of the company (16% of the company’s original total applicable) share capital) and controls 19.09% shares of the company through Shenzhen Agricultural Products Group Co. Ltd. indirectly becoming the controlling shareholder of the company.In 2018 the company implemented a major asset restructuring by issuing 655752951 A-shares to purchase 100% equity of Shenzhen Grain Group Co. Ltd. held by the controlling shareholder Fude Capital. On November 12 2018 the above-mentioned issued shares were registered and listed and thecontrolling shareholder Fude Capital (now renamed into “ShenzhenAgricultural Power Group Co. Ltd.”) directly held 735237253 A-shares of the company (63.79% of the total share capital of the company) and indirectly held 8.23% of the company's shares through Shenzhen Agricultural Products Group Co. Ltd.V. Other relevant information CPA engaged by the Company Name of CPA Grant Thornton Certified Public Accountant LLP (Special General Partnership) th Offices add. of CPA 5 Floor Saite Plaza No. 22 Jianguomenwai Street Chaoyang District Beijing China Signing accountants Gao Hong Shu Zhicheng Sponsor engaged by the Company for performing continuous supervision duties in reporting period □ Applicable□ Not applicable Financial consultant engaged by the Company for performing continuous supervision duties in reporting period □ Applicable□ Not applicable VI. Main accounting data and financial indexes Whether the company has retroactive adjustment or re-statement on previous accounting data or not ?Yes □No Reasons for retrospective adjustments or restatementsBusiness combinations under the same control In RMB Changes in the current 2023 year over 2022 2024 theprevious year (+/-) Before adjustment After adjustment After Before adjustment adjustment After adjustment Operating revenue (RMB) 5375089846.91 6190005356.82 6190005356.82 -13.17% 8312723058.19 8312952171.77 Net profit attributable to shareholders of the listed 325309578.52 347824733.68 347739109.06 -6.45% 420764671.03 420465392.11 Company (RMB) Net profit attributable to shareholders of the listed Company after 307799147.68 328171024.17 328085399.55 -6.18% 402593545.20 402294266.28 deducting non- recurring gains/losses (RMB) Net cash flow arising from operating -15317619.38 585816656.19 585734715.61 -102.62% 531888766.64 532413776.97 activities (RMB) Basic earnings per share 0.2823 0.3018 0.3017 -6.43% 0.3649 0.3648 (RMB/Share) Diluted earnings per share 0.2823 0.3018 0.3017 -6.43% 0.3649 0.3648 (RMB/Share) Weighted average ROE 6.67% 7.26% 7.25% -0.58% 8.96% 8.94% Changes in the current Year-end of Year-end of 2023 year over Year-end of 2022 2024 theprevious year (+/-) Before adjustment After adjustment After Before adjustment adjustment After adjustment Total assets (RMB) 7714550508.01 7398528190.94 7402926251.19 4.21% 7441489372.63 7450683615.20 Net assets attributable to shareholder of 4919674142.82 4824452103.84 4828491503.39 1.89% 4763122059.40 4767188755.69 listed company (RMB) The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years is negative and the audit report of last year shows that the ability to continue operating is uncertain.□Yes □No The lower one of net profit before and after deducting the non-recurring gains/losses is negative.□Yes □NoVII. Difference of the accounting data under accounting rules in and out of China 1. Difference of the net profit and net assets disclosed in financial report under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) □ Applicable □ Not applicable In RMB Net profit Net asset Current amount Last amount Ending balance Beginning balance Under Chinese GAPP 325309578.52 347739109.06 4919674142.82 4828491503.39 Items and amount adjusted under IAS 1067000.001067000.00 Under IAS 325309578.52 347739109.06 4920741142.82 4829558503.39 2. Difference of the net profit and net assets disclosed in financial report under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles) □ Applicable□ Not applicable The Company has no above-mentioned condition occurred in the period 3. Explanation on the reasons for the differences in accounting data under domestic and overseas accounting standards □ Applicable□ Not applicable VIII. Main financial index disclosed by quarter In RMB Q 1 Q 2 Q 3 Q 4 Operating revenue 1072962661.16 2416452919.61 1385664850.01 500009416.13 Net profit attributable to shareholders of the 63895624.77 129030850.78 115531458.13 16851644.84 listed company Net profit attributable to shareholders of the listed company after 52190357.81 116892371.77 109897377.98 28819040.12 deducting non- recurring gains/losses Net cash flow arising from operating 253168024.67 -158531444.41 427972407.50 -537926607.14 activities Are there significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in the Company’s quarterly report and semi-annual report □Yes □ No IX. Items and amounts of non-recurring gains/losses □Applicable □Not applicable In RMBItem 2024 2023 2022 Note Gains/losses from the disposal of non-current asset (including the written-off of accrued impairment provision of assets) 5160259.92 2394378.42 -3470850.06 Governmental subsidies reckoned into current gains/losses (except for those with normal operation business concerned and conform to the national policies & regulations and are enjoyed according to certain 10243944.62 14544417.04 8775672.58 standard and having a continuous impact on the company’s gains/losses) Gains/losses arising from changes in fair value of financial assets and financial liabilities held by non-financial enterprises as well as gains/losses from the disposal of financial assets and financial liabilities 182701.67 18546.91 except for effective hedging business related to the normal operation of the company.Gains/losses of assets delegation on others’ investment or management 4518517.76 6622492.60 8455442.20 Reversal of impairment provision of accounts receivable which are treated with separate depreciation test 679204.22 881986.09 Net current gains/losses from the business combination under the same control in the period from the beginning of the period to the date of 92048.86 combination Other non-operating income and expenditure except for the aforementioned items 147191.48 644754.74 7042268.06 Other gains/losses that meet the definition of non-recurring gains/losses 2890749.95 1064111.79 Less: impact on income tax 5545407.55 5027939.98 4583525.90 Impact on minority shareholders’ equity (after-tax) -3125.80 386299.20 12525.84 Total 17510430.84 19653709.51 18171125.83 -- Other gains/losses that conform to the definition of non-recurring gains/losses: □ Applicable□ Not applicable The Company does not have other gains/losses that conform to the definition of non-recurring gains/losses.Information on the definition of non-recurring gains/losses listed in the Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Gains/Losses as Recurring Gains/Losses □Applicable □Not applicable The Company does not have any non-recurring gains/losses listed in the Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Gains/Losses as Recurring Gains/Losses.Section III Management Discussion and Analysis I. Industry of the Company during the reporting period 1. Basic information of the industry development stage cyclical characteristics and the company’s position in the industry In the international market multiple factors - including ample supply weak downstream demand shifts in cost-performance ratios among different grain types and sluggish market sentiment - contributed to a downturn in global grain prices. The market prices of major cereals declined to varying degrees. According to data from the Chicago Board of Trade (CBOT) in 2014 wheat prices experienced a downward fluctuation falling from 629 cents per bushel to 551 cents per bushel over the year marking a year- on-year decrease of 12.4%; corn prices declined from 686 cents per bushel in January 2023 to 396 cents per bushel in August 2024 - a drop of 42% - before rebounding slightly to 458 cents per bushel by year-end down 2.6% year-on-year; soybean prices fell steadily throughout the year reaching their lowest level in nearly four years dropping from 1297 cents per bushel to 1010 cents per bushel representing a 22.2% year-on-year decline. International rice prices also retreated steadily from the peak at the beginning of the year with India’s relaxation of its rice export policy further accelerating the decline. By the end of the year export prices for white rice from Thailand Vietnam and Pakistan had dropped from the initial range of USD 595–659 per tonne to USD 429-523 per tonne representing year-on-year decreases of 20.6% 22.1% and 23.4% respectively.On the domestic front China’s grain output reached a new record high in 2024 surpassing 700 million tonnes for the first time.Despite the bumper harvest prices of major grain varieties continued to decline. With ample domestic grain supply and sluggish consumption growth combined with the downward pressure from international grain prices purchase prices for wheat corn and rice remained relatively stable in the first half of the year but dropped significantly after the autumn harvest entered the market. To stabilize the market the government implemented a series of regulatory measures. The minimum purchase price policy for rice was activated in four major producing provinces - Henan Jiangsu Heilongjiang and Anhui. China Grain Reserves Group (Sinograin) expanded its procurement for wheat and corn reserves while wheat and corn imports were curtailed to boost market confidence.Nevertheless overall grain prices remained at relatively low levels. For rice early and late indica rice purchase prices remained stable in the first half of the year. However in the second half early indica rice prices saw a slight decline while late indica rice prices began to fall in August. For wheat domestic prices continued their downward trend due to spillover effects from the international market. By the end of December wheat purchase prices had dropped below RMB 2400 per tonne to RMB 2370 per tonne returning to 2020 levels - a year-on-year decline of 16.7%. For corn domestic prices mirrored international trends and began falling steadily from the second half of 2023. By the end of December prices had fallen to RMB 1931 per tonne down 16.8% year- on-year reaching levels last seen in the first half of 2020. For soybeans domestic prices followed a similar trajectory to U.S. soybean prices. By the end of December the average domestic price was RMB 4031 per tonne a year-on-year decrease of 20.5%. For edible vegetable oils market performance was mixed. Rapeseed oil prices edged upward throughout the year reaching an ex-factory price of RMB 9411 per tonne by the end of December a year-on-year increase of 10.4%. In contrast soybean oil prices hovered at low levels with an ex-factory price of RMB 8141 per tonne showing little change year-on-year. Peanut oil prices experienced a downward trend with the ex-factory price falling to RMB 14500 per tonne by the end of December a year-on-year decrease of 9.4%.(The above content is from the “2024 Grain and Oil Market Review and Future Outlook” released by the Grain and Material Reserve Bureau of Guangdong Province.) 2. The significant impact of newly released laws administrative regulations departmental rules and industry policies on the industryIn February 2024 the Central Committee of the Communist Party of China and the State Council issued the Opinions on Drawing Lessons from the “Thousand Villages Demonstration and Ten Thousand Villages Renovation” Project to Effectively Advance Comprehensive Rural Revitalization (hereinafter referred to as the Opinions). This marks the 12th No. 1 Central Document since the 18th National Congress of the Communist Party of China reaffirming the nation’s top-level commitment to addressing issues related to “agriculture rural areas and farmers”. The Opinions place ensuring national food security at the forefront of policy priorities alongside the bottom-line goal of preventing large-scale reoccurrence of poverty. The document calls for the solid advancement of a new round of initiatives to increase grain production capacity by 50 billion kilograms with a dual emphasis on stabilizing the sown area and increasing per-unit yield. It sets a clear target of maintaining annual grain output above 650 million tonnes (1.3 trillion jin). Additionally the document advocates continued support for the development of high-yield high-oil soybean varieties the stabilization of minimum purchase prices for key staples such as wheat and rice and the promotion of a broad perspective on agriculture and food security. To achieve these goals the Opinions outline a series of concrete measures including: Ensuring the production of grain and other key agricultural products; strictly enforcing farmland protection policies; enhancing agricultural infrastructure; strengthening the support of agricultural science and technology and establishing a modern agricultural management system.In summary the 2024 policy document reflects the nation’s unwavering emphasis on food security and agricultural development. It underscores the importance of maintaining and strengthening the Party’s comprehensive leadership over rural affairsaiming to build a strong agricultural sector. Drawing on the successful experience of the “Thousand Villages Demonstration and TenThousand Villages Renovation” initiative the strategy provides a clear roadmap for stabilizing and boosting food production thereby safeguarding China’s national food security.II. Main businesses of the Company during the reporting period Main business of the Company includes the wholesale and retail business food processing and manufacturing business leasing and commerce service business.The wholesale and retail business are mainly rice wheat rice in the husk corn sorghum cooking oil and other varieties of grain and oil as well as the sales of fine tea beverage and condiment. During the reporting period the company overcame many adverse factors such as decline in market demand and fluctuation of grain price took multiple measures to ensure supply and stable supply and continued to optimize the products strengthen the brand and expand the market. Mainly supplied wheat rice corn barley sorghum and other raw grain to customers such as the industry’s large traders feed processing and flour processing enterprises; mainly sold rice flour cooking oil high-quality tea beverages and other products to demand units and community residents.Food processing and manufacturing business are mainly the processing and the technology research in aspect of flour rice cooking oil tea and natural plant extracts beverage and condiments etc. The company’s flour brands and products include “Jinchangman” “Yingshanhong” and “Hongli” series bread flour; “Clivia” and “Canna” series tailored flour for cakes and steamed bun; “Sunflower” wheat flour for noodles and cookie flour; “Tianlvxiang” wheat flour for bread refined flour and dumpling flour etc.; Rice products include “Shenliang Doximi” “Guzhixiang” “Gufengxianman” “Runxiangliangpin” “Hexiang” and “TaitaiFukou”. Cooking oil products include brands such as “Shenliang Fuxi” “Shenliang Jinxi” and “Youtian”. Tea brands mainly include “Ju Fang Yong” tea; “Yichong” fresh extract “Jindiao” instant tea powder and other tea deep-processed products as well as “Shenbao” chrysanthemum tea lemon tea and “Cha Mi Xiang Qi” and other series of tea drinks. Condiments are mainly “Sanjing” oyster sauce and sauces. Several brands have formed product series including “SZCH Yushuiqing” rice noodles oil and coarse cereals series “Jiaxi” rice & noodles series “Jinchangman” noodles & oil series “Black-faced Spoonbil”l tea rice oil drinking water non-staple food and condiment series etc. and the launch of Jinqiu tea wine continues to enrich the product structure.The leasing and business service refers to providing the professional import & export trade warehousing & storage logistic & distribution quality inspection & information technology services property leasing and management business operation management services for all kinds of clients in the upstream and downstream of the industrial chain by using the advantage of brand reputation operation service capacity and facility technology that accumulated in field of grain and oil market. Dongguan Shenliang gain logistics complex is a comprehensive grain distribution service body integrating five major functions: grain & oil terminal transit reserve testing & distribution processing & production and market trading; The subsidiary Shenliang Quality Inspection was awarded as “Guangdong Shenzhen National Grain Quality Monitoring Station”. The subsidiary Shenliang Cold Chain provides cold chain of food storage and distribution services to the customers and Shenliang Property is a professional assets management platform enterprise.II. Core Competitiveness Analysis The company enhances the endogenous power by deepening reform strengthens the “extensive” development by innovation cooperation and continuously upgrades and transforms the governance pattern development quality and guarantee ability and has embarked on a path of sustainable and high-quality development through self-innovation and become a highly competitive innovative and influential backbone grain enterprise in the domestic grain industry. 1. Operation mechanism The core management team of the company has rich experience and has a strong strategic vision and pragmatic spirit.Combined with the actual development of the Company formulated a set of effective mechanisms to promote the quality and efficiency of business development. The company vigorously promotes the innovation and transformation of business models and actively promotes the transition from “trade-oriented enterprises” to “service-oriented enterprises” and from “operationalmanagement and control” to “strategic management and control”. In business control through the own information management system realizes a seamless link between the “operation” and “planning capital quality inspection inventory risk control anddiscipline” to effectively reduce the operational risks while fully participating in the market competition and achieving a deep integration of “ensuring grain security” and “promoting development”. Through deeply promotes the strategy of “talent strengtheningthe enterprises” continuously innovative talent training mechanism to creates a high-quality talent supply chain the company has established an open talent team to meet the long-term development of enterprises and reserve intelligence for the enterprise upgrading and development. The company has innovated and implemented the performance appraisal mechanism and established a result-oriented incentive and restraint assessment mechanism which effectively built the performance culture and stimulated theviability within the enterprise. The company insists on cultivating and advocating the corporate culture with “people-orientedperformance first excellent quality and harmony” as the core values combines the personal development goals of employees with the corporate vision and enhances the cohesiveness and centripetal force of the enterprise. 2. Business model The company deeply engages in segmenting the target market provides diversified product supply services for customers in different areas of the industry chain establishes a multi-level product supply network covering online and offline and realizes the transformation of product supply to “remoteness intelligentization and self-service”. In terms of grain and oil trading services the bulk commodity trading platform www.zglsjy.com.cn created by its subsidiary Hualian Company efficiently integrates business flow logistics and information flow improves circulation efficiency and provides spot listings one-way bidding basis price financing logistics quality inspection information and other services for internal business units suppliers and customers. In terms of e- commerce SZCH Doximi actively promotes the development of new grain retail formats such as “Internet + Grain” and has opened channels on e-commerce platforms such as Tmall and Jingdong Mall so as to promote the deep integration of online and offline e- commerce platforms. In terms of group meal supply its subsidiary SZCH Big Kitchen has established a one-stop distribution serviceplatform serving large end customers providing high-quality and safe oil and grain services for group users such as enterprises schools and government institutions. 3. Information technology The company attaches great importance to the transformation and upgrading of traditional industries with modern technological means and actively introduces new-generation information technologies such as the Internet of Things cloud computing big data and mobile Internet into grain management forming an information system that can cover the entire industrial chain of the grain industry and promoting the “Internet + Grain” industry development. The company’s informatization construction capability is at theleading level in the grain reserves industry taking the lead in building the warehouse management of “standardizationmechanization informatization and harmlessness” in the industry the self-developed “Grain Logistics Information System (SZCGGLS)” has built a framework for the construction of grain informatization work innovated the grain management model led the development direction of the grain industry and became a benchmark for the national grain industry. The project was awarded the “National IoT Major Application Demonstration Project” by the National Development and Reform Commission and the Ministry of Finance. The company has undertaken a number of national-level research projects the results of a number of informatization projects have won national provincial and municipal awards and dozens of information systems have been developed and are operating normally. 4. R&D capabilities The company has strong R&D capabilities in the field of food and beverage and gathers leading technological advantages and equipment systems. The subsidiary Shenbao Huacheng owns the Jiangxi provincial enterprise technology center Shenzhen municipal research and development center (technology center) and Shenzhen plant deep processing technology engineering laboratory and have obtained national high-tech enterprise certification. And also owns a number of patented technologies for tea powder tea concentrated juice and plant extraction independently researched and developed and published dozens of scientific papers. and won a number of awards such as Science and Technology Progress Award of the Ministry of Agriculture Shennong Chinese Agricultural Science & Technology Award of the Chines Society of Agriculture Science & Technology Achievement Award of Chinese Academy of Agricultural Sciences Science and Technology Award of China National Light Industry Council Zhejiang Science and Technology Award Jiangxi Science and Technology Progress Award and Shenzhen Science & Technology Progress Award etc.presided over or participated in the preparation of several national standards and industry standards. 5. Quality control The company implements grain and oil quality standards that are higher than national standards. The subordinate Shenliang Quality Inspection has the leading grain and oil quality inspection technology and equipment in the domestic grain industry and isincluded in the national grain quality supervision and inspection system. It was awarded the “Guangdong Shenzhen National GrainQuality Monitoring Station” by the State Administration of Grain and obtained the assessment certificate of agricultural product quality and safety inspection agency (CATL) and the qualification certificate of inspection agency (CMA) etc and passed the certification of a number of testing capability items. Shenliang Quality Inspection lists pesticide residues heavy metal pollutants fungal toxins and other hygiene indicators as well as food taste indicators in the daily inspection indicators. It has the ability to detect four types of indicators of generic quality storage quality food security & quality and other four types of indicators of testing capacity. The detection capability can meet the relevant quality detection requirements of grain and oil products and can accurately analyze the nutritional composition and hygienic indicators of the grain and determine its storage and edible quality. It has created the “digital laboratory” in the grain industry real-time monitoring of the entire process of cuttings testing distribution etc. relying on collaborative platforms to save retrieve integrate analyze and share grain and oil testing data to achieve 100% coverage of grain & oil product inspection. Has the internationally recognized quality control system. Its subsidiary Shenbao Huacheng has established a quality control system recognized by large international food and beverage companies and has successfully passed the quality certification of global suppliers of Coca-Cola Lipton Kraft Suntory and Nestlé.6. Brand effect The company was awarded the “Top 500 Service Enterprises in China” “China’s Most Influential Grain & Oil Group” “China Top Ten Grain and Oil Groups” “China Top 100 Grain and Oil Enterprises” “National Leading Enterprise Supporting Grainand Oil Industrialization” “National Quality Benchmark” and “Top 10 Food Digital Technology Applications”. It has been selected as one of the “First Batch of National Emergency Food Security Enterprises” “Top 100 Agricultural Industrialized Head Enterprisesin China” “Top 10 Head Enterprise in the Grain Industry” and “The National Demonstration Enterprise of Assured Gain & OilDemonstration Project” etc. It is the “Rice Bag” trusted by the public. Strengthen brand leadership actively explore and cultivate excellent public brands rely on quality to win recognition reputation and market share and form a series of high-quality grain and oil products centered on China Good Grain and Oil Shenzhen Well-known Brands and Shenzhen Products. The company owns well-known brands and platforms such as “Shenzhen Flour” “SZCH Duoxi” “SZCH Yushuiqing” “Big Kitchen” “ShenbaoTeabank” “Ju Fang Yong” “Cha Mi Xiang Qi” “Sanjing” “www.zglsjy.com.com” and “doximi.com”.IV. Main business analysis 1. Overview In 2024 amid the downward trend in the grain and oil market sluggish consumer demand and shifts in policy environment the company faced challenges head-on with resilience and determination. Through proactive efforts to expand revenue and reduce costs the company continued to strengthen its core businesses made meaningful progress in developing new business areas and accelerated the resolution of legacy issues - achieving hard-won progress throughout the year. As of December 2024 the company’s total assets reached 7.715 billion yuan with net assets attributable to shareholders of the listed company standing at 4.92 billion yuan.Its asset-liability ratio stood at a healthy 36.21% positioning it among the top performers in the industry; the company recorded operating revenue of 5.375 billion yuan and total profits of 419 yuan million with key financial indicators ranking favorably among listed grain enterprises. In 2024 the company received numerous accolades including being named one of China’s Top 10 Grain and Oil Groups winning the First Prize of the Science and Technology Award from the Chinese Cereals and Oils Association and being listed among the Top 500 Enterprises in Guangdong Province. It was also recognized as a Key Leading Agricultural Enterprise in Guangdong and an Outstanding “Double Hundred Enterprise”. Moreover the company successfully passed the national on-site verification for emergency grain supply enterprises and was approved to participate in the development of the Greater Bay Area Grain Emergency Supply Center. (1) Main business developmentIn response to persistently weak demand in the grain and oil market in 2024 the company focused on identifying new “profitdrivers”. First it fulfilled its political responsibility of ensuring regional food security achieving record-high reserve levels. Despite challenges such as significant price volatility and heavy storage tasks the company optimized its warehouse layout and storage structure completing its largest-ever rice reserve initiative with high quality and efficiency thus reinforcing its reserve foundation.Second the company accelerated the construction of its grain and oil supply chain achieving notable progress in expanding trade operations. By rigorously implementing the “Ten Prohibitions” in trade activities the company established a dedicated task force to comprehensively reform its trading system building a “1+2+2” institutional framework. Senior executives led efforts to expand the customer base while operating units actively engaged the market and deepened cooperation with leading industry players and partners across the value chain. (2) Progress of key projects Key projects are progressing at a faster pace continuously enhancing the capacity of the grain oil and food supply chain. First efforts are being made to ensure the high-quality construction and operation of the Shenshan storage facility. Dedicated personnelhave been dispatched to closely collaborate with the Municipal Development and Reform Commission to drive project development and operational research. A technical team has also been assigned to participate in the installation of electromechanical equipment and conduct studies on the facility’s operational model. Second the construction of the grain supply base in Northeast China is being actively promoted. A 49% minority stake in the Shuangyashan has been acquired and the autumn grain procurement is being expedited. The new grain season has already seen the successful storage of harvested rice. Third the Dongguan logistics hub is undergoing a functional upgrade. Expansion and reconstruction work on Berth No. 4 the belt corridor and the CDE warehouse cleaning and screening project are being pushed forward. These efforts have helped generate over 100 million yuan in transshipment revenue. Fourth the construction of the Wuyuan Smart Factory is progressing steadily. A new mixing machine has been installed storage capacity for raw materials has been expanded and infrastructure in the tea roasting area has been upgraded. These enhancements are expected to further optimize and improve overall production capacity. (3) Other key works First efforts to accelerate technological innovation and foster new drivers of high-quality development have been intensified.Shenbao Huacheng has participated in the formulation of two industry standards including those related to tea concentrate and jointly completed the project Key Technological Innovations and High-Value Applications of Biocatalysis in Tea Resources which was awarded First Prize at the Provincial Science and Technology Progress Awards. Through technological empowerment the company procures nearly 10000 tons of tea leaves annually from tea-producing regions contributing to increased income and prosperity for local tea farmers. A quality inspection company has been recognized as the only institution in Guangdong Province among the first batch of national grain and oil standards verification and testing workstations. It has successfully passed the reassessment by the agricultural product quality and safety testing authorities with 311 indicators certified under CATL and 682 under CMA. In addition the release of the Technical Specifications for Emergency Rice Reserve Preservation in Shenzhen has filled a gap in the city’s local standards.Second efforts have been intensified to strengthen and standardize corporate governance with multiple measures implemented to advance high-quality development. Revisions were made to systems such as the Independent Director Policy of SZCH promoting the implementation of independent director system reforms. The company optimized its organizational structure and assessment models enhanced the compensation and performance evaluation system adjusted the ratio of fixed to variable pay to improve market competitiveness and enforced a mandatory performance rating distribution system. Financial management efficiency continued to be demonstrated with centralized fund management effectively reducing costs and enhancing efficiency to the greatest extent possible.Contract management was further standardized and improved through the comprehensive revision of the Contract Management Policy which clarified approval authorities and procedures for various business matters and contract types. A standardized contract repository was systematically enhanced and risk control was strengthened across multiple dimensions significantly improving contract review efficiency. Project management was strengthened with the launch of an engineering project management information system. Cost control measures were reinforced by reviewing project costs and setting reasonable bid ceiling prices thereby reducingconstruction expenses. Safety production management was also enhanced through the implementation of the “Three Managementsand Three Musts” principle reinforcing the primary responsibility for workplace safety and intensifying supervision and inspection efforts. The company formulated and launched the 2024 Fire Safety Comprehensive Rectification Action Plan of SZCH conducting thorough inspections and rectifications of general hazards. Internal lean management was promoted by advancing special initiatives to defuse risks and maintain social stability. Overall the situation in petition-related work remained stable. 2. Operating revenue and cost (1) Component of operating revenueIn RMB 20242023 Ratio in Ratio in YoY Increase/decrease Amount operating Amount operating (+/-) revenue revenue Total operating revenue 5375089846.91 100% 6190005356.82 100% -13.17% By industries Wholesale and retail 3547023210.68 65.99% 4466378701.20 72.15% -20.58% Leasing and business services 1029137510.95 19.15% 967047827.95 15.62% 6.42% Manufacturing 798929125.28 14.86% 756578827.67 12.22% 5.60% By products Grain & oil trading and processing 3999373911.19 74.41% 4954330328.57 80.04% -19.28% Grain & oil storage logistics and services 856190020.28 15.93% 847768124.02 13.70% 0.99% Food beverage and tea processing 346578424.77 6.45% 268627200.30 4.34% 29.02% Leasing and others 172947490.67 3.22% 119279703.93 1.93% 44.99% By region Domestic market 5342106430.30 99.39% 6150511661.23 99.36% -12.70% Overseas market 32983416.61 0.61% 39493695.59 0.64% -86.07% By sale model Direct sale 5375089846.91 100.00% 6190005356.82 100.00% -13.17% (2) Industries products regions and sales model that account for more than 10% of the operating revenue or operating profit of the Company □Applicable □Not applicable In RMB Gross YoY YoY Operating revenue Operating cost profit increase/decrease YoY increase/decrease increase/decrease ratio of operating of operating cost of gross profitrevenue ratio By industry Wholesale and retail 3547023210.68 3439103716.33 3.04% -20.58% -18.86% -2.06% By products Grain & oil trading and 3999373911.19 3888317295.08 2.78% -19.28% -17.75% -1.79% processing By region Domestic market 5342106430.30 4456647718.46 16.58% -13.14% -14.28% 1.11% By sale model Direct sale 5375089846.91 4479001434.83 16.67% -13.17% -14.34% 2.96% In the event that the statistical caliber of the company’s main business data is adjusted during the reporting period the main business data of the company has been adjusted according to the caliber at the end of the reporting period in the past year.□Applicable□Not applicable (3) Revenue from physical sales larger than revenue from labors □Yes □ No YoY Industries Item Unit 2024 2023 increase/decrease (+/-) Wholesale and Sales volume Ton 1397429.10 1577925.32 -11.44% retail Output TonStorage Ton 1346900.95 1073790.95 25.43% Reasons for y-o-y relevant data with over 30% changes □Applicable□Not applicable (4) Performance of significant sales contracts and major procurement contract entered into by the company up to the current reporting period □Applicable□Not applicable (5) Component of operation cost Classification of industries In RMB 2024 2023 YoY Industries Item Amount Ratio in Amount Ratio in increase/decrease operation cost operation cost (+/-) Wholesale and Raw retail industry materials 3439103716.33 76.78% 4238501198.60 81.06% -18.86% Explanation The main business income of the company is from grain and oil trade and the corresponding cost expenditure is mainly the procurement cost of grain and oil trade. (6) Whether there are changes in the scope of consolidation in reporting period or not □Yes □No (7) Material changes or adjustment for products or services of the Company in reporting period □Applicable□ Not applicable (8) Major clients and main suppliers Major clients of the Company Total sales volume of top five clients (RMB) 1434463754.31 Proportion in total annual sales volume for top five clients 26.69% Proportion in total annual sales volume for related sales among top five clients 0.00% Top five clients of the Company SN Name Sales volume (RMB) Proportion in total annual salesvolume 1 Client I 784936300.63 14.60% 2 Client II 188289697.83 3.50% 3 Client III 166970723.08 3.11% 4 Client IV 155093808.85 2.89% 5 Client V 139173223.92 2.59% Total -- 1434463754.31 26.69%Other explanation on main clients □Applicable□Not applicable Main suppliers of the Company Total purchase amount from top five suppliers (RMB) 1568093186.67 Proportion in total annual purchase amount for top five suppliers 34.34% Proportion in total annual purchase amount from related 0.00% purchase among top five suppliers Top five suppliers of the Company SN Name Sum of purchase amount Proportion in annual sum of (RMB) purchase amount 1 Supplier I 802886503.70 17.25% 2 Supplier II 197620468.07 4.25% 3 Supplier III 213657805.21 4.59% 4 Supplier IV 207467699.60 4.46% 5 Supplier V 176993461.04 3.80% Total -- 1568093186.67 34.34% Other explanation on main suppliers □Applicable□Not applicable 3.Expenses In RMB 2024 2023 YoY increase/decrease(+/-) Note of major changes Mainly due to the decline in the revenue from the grain and oil Sales expenses 149810329.96 176429835.98 -15.09% trading business and the year-on-year decrease of related sales expenses.Administration Mainly due to the expenses 168245200.59 213065091.64 -21.04% decrease in salaryexpenses Mainly due to the decrease in the average annual borrowing balance. At the same Financial expenses 32678246.41 40062827.89 -18.43% time the market Loan Prime Rate (LPR) has been lowered several times the decrease in interest expenses Mainly due to the R&D expenses 25208644.43 20045364.68 25.76% increase in thecompany’s R&D investment 4.R&D investment □Applicable□Not applicable Expected impact on the Projects Purpose Progress Goals to be achieved future development of the CompanyA system-wide platform for Phase II of the To enhance the digital data and information sharing The initiative has Reserve Grain and supervision of reserve grain has been established enabling significantly improved the Oil Management and oil and to effectively one-click report generation company’s digital capabilities Platform (Idle coordinate and utilize idle Completed real-time display of idle in reserve management Period periods while managing periods and visualization of enhanced data quality and Management inventory levels on a daily warehouse information. This governance and strengthened System) basis. serves as a key internal tool for oversight of grain and oil managing reserves. reserves.Focused on building a The data middle platform To strengthen the company’s foundational structure for now provides a unified data data governance and business data collection source for business Data Middle regulatory capabilities by storage governance and operations decision-making Platform Project addressing pain points Completed classification. Efforts have been and customer analysisstemming from a lack of made to enhance data thereby supporting future unified standards and regulation and governance business development centralized management. laying the groundwork for regulatory compliance and standardized data management. improved customer service.By leveraging information The system has improved both technology the company has the efficiency and accuracy of The initiative enhances the developed an efficient performance evaluations level of performance Performance scientific and user-friendly offering valuable data analysis evaluation boosts internal Evaluation and system for assessing Completed to support management’s operational efficiency and Scoring System performance across all strategic decision-making. This supports high-quality headquarters departments in a in turn contributes to development through digital comprehensive objective sustainable development by and intelligent human and fair manner. strengthening human resource resources management.management.Smart equipment and software To meet regulatory have been deployed at depots Smart Grain requirements for reserve such as Pingshan and Depot supervision and achieve Shuguang enabling automated The project has improved theConstruction seamless access to “video Completed collection of grain conditionscompany’s compliance andProject surveillance” “grain video footage and data. Thisstandardization in reservecondition monitoring” and allows for transparent and management.“data integration.” thorough supervision of grain and oil reserves.R&D personnel 2024 2023 Increase (+)/Decrease (-) Number of R&D personnel 117 144 -18.75% Ratio of number of R&D personnel 10.00% 11.86% -1.86% Education background Undergraduate 55 60 -8.33% Master 34 33 3.03% Age composition Under 30 41 34 20.59% 30~40 42 65 -35.38%R&D investment 2024 2023 Increase (+)/Decrease (-) R&D investment (RMB) 52099502.14 54614733.25 -4.61% Ratio of R&D investment in operating revenue 0.97% 0.88% 0.09% Capitalization of R&D investment (RMB) 0.00 0.00 0.00% Ratio of capitalization of R&D investment in R&D investment 0.00% 0.00% 0.00% Describe rreasons for significant changes in component of the R&D personnel and related impact □Applicable □Not applicable Describe reasons for significant changes in ratio of R&D investment in operation revenue compared with that of last year □ Applicable □ Not applicable Describe reason for the great change in the ratio of capitalization of R&D investment in R&D investment.□ Applicable □ Not applicable 5. Cash flow In RMB Item 2024 2023 YoY Increase (+)/Decrease (-) Subtotal of cash inflow from operation activity 6009744381.86 6705117606.34 -10.37% Subtotal of cash outflow from operation activity 6025062001.24 6119382890.73 -1.54% Net cash flow arising from operating activities -15317619.38 585734715.61 -102.62% Subtotal of cash inflow from investment activity 442392843.77 1575902755.32 -71.93% Subtotal of cash outflow from investment activity 451195262.84 1690621094.50 -73.31% Net cash flow from investment activity -8802419.07 -114718339.18 92.33% Subtotal of cash inflow from financing activity 3395816991.96 1931277809.13 75.83% Subtotal of cash outflow from financing activity 3449612888.56 2231395012.46 54.59% Net cash flow arising from financing activity -53795896.60 -300117203.33 82.08% Net increased amount of cash and cash equivalent -77810324.25 174491378.52 -144.59% Describe reasons for major YoY changes of relevant data □ Applicable □ Not applicable (1) The cash inflow from operating activities in current period decreased by 10.37% YOY mainly because the revenue from grain and oil trade of the company decreased resulting in a decrease in cash inflow as the market demand for oil and grain went down; (2) The net cash flow from operating activities in current period was negative compared with that positive in same period last year mainly caused by the weakening demand in the grain and oil market which has led to a decline in the company's grain and oil trading revenue. Besides it was due to the increase in the company's grain and oil inventory at the end of the period. (3) The cash inflow from investment activities in current period reduced by 71.93% YOY mainly due to the year-on-year decrease in the company's use of idle funds to purchase financial products/certificates of deposit this year. As a result the redemption of matured financial products/ certificates of deposit reduced YOY leading to a reduction in cash inflows. (4) The cash outflow from investing activities in current period decreased by 73.31% YOY mainly because the idle funds used by the company to purchase financial products/certificates of deposit this year reduced YOY resulting in a reduction in cash outflows. (5) The cash inflow from financing activities in the current period increased by 75.83%YOY mainly because the company used more funds to procedure grain and oil and the working capital loans went up.(6) The cash outflow from financing activities in the current period increased by 54.59% YOY mainly because the company increased its temporary working capital loans resulting in an increase in the corresponding loan repayment expenditures. The increase ratio was consistent with the cash inflow from financing activities. (7) The net increase in cash and cash equivalents has turned from positive to negative compared with that in the same period last year mainly due to the increase in the company's payments for grain and oil procurement.Describe reasons for major difference between the cash flow arising from operation activity in reporting period and net profit of the Company □ Applicable□ Not applicable V. Analysis of non-main business □ Applicable □ Not applicable In RMB Amount Ratio in total profit Description of Sustainable orformation not(Y/N) Investment income 3416742.97 0.81% Mainly financialmanagement income Asset impairment -102359076.35 -24.41% Mainly due to inventoryfall provision Non-operating income 608747.13 0.15% Non-operating expense 603979.68 0.14% VI. Analysis of assets and liabilities 1. Major changes of assets component In RMB Year-end of 2024 Year-begin of 2024 Ratio in Ratio in Ratio Amount total Amount total changes Notes of major changes assets assets Mainly payment by the Monetary fund 168199291.23 2.18% 240740787.28 3.25% -1.07% company to purchase grain and oil Account receivable 235789565.91 3.06% 179828493.98 2.43% 0.63% Mainly due to the Inventory 4044998642.52 52.43% 3458443989.04 46.72% 5.71% increase in inventory of grain and oil.Investment real estate 302075246.75 3.92% 263597031.89 3.56% 0.36% Long-term equity 45356888.44 0.59% 74008926.48 1.00% -0.41% investment Mainly due to the Fixed assets 2009520283.95 26.05% 2171997328.52 29.34% -3.29% transfer of some fixedassets leased to investment properties.Construction in progress 39312847.70 0.51% 51288301.16 0.69% -0.18% Right-of-use assets 115258040.17 1.49% 56933148.16 0.77% 0.72% Mainly due to increase Short-term loans 1484605101.05 19.24% 1223462519.16 16.53% 2.71% in short-term bankborrowings the satisfy the needs of thecompany for operating capital Contract liability 126590458.95 1.64% 86566253.73 1.17% 0.47% Lease liability 78084500.76 1.01% 37744951.74 0.51% 0.50% Foreign assets account for a relatively high proportion □ Applicable□ Not applicable 2. Assets and liabilities measured at fair value □ Applicable□ Not applicable 3. Restricted asset rights as of the end of the reporting period The details of monetary funds which are restricted in use due to mortgage pledge or freezing which are restricted in withdrawal due to centralized management of funds as well as which are deposited overseas and restricted in remittance back are as follows: Item Ending balance in current period Ending balance in last period Guarantee deposit 1800000.00 Letter of credit deposit 3245714.29 691708.31 Litigation related freezing 6018240.07 2973129.00 Total 9263954.36 5464837.31 VII. Investment analysis 1. Overall situation □ Applicable □ Not applicable Investment in reporting period (RMB) Investment in the same period of lastperiod (RMB) Changes (+/-) 98127483.2580361097.0022.11% 2.The major equity investment obtained in the reporting period □ Applicable□ Not applicable 3.The major non-equity investment performed in the reporting period □ Applicable□ Not applicable 4. Financial assets investment (1) Securities investment □ Applicable □ Not applicableIn RMB Chan ges Bo in okBook fair CumulShort Curr Profit val Varie Code form Initial Account value at valu ative ent and ue ty of of of invest ing the fair Current loss in at Accou measure beginni e of value purc sales the the nting Capitalsecur secur ment the hase Source ities ities securit cost ment ng of curre change amo amount Reporti end subjecties model the nt s in unt ng ofperiod profi equity Period the t and peri loss od Dom estic Fair Tradab Debt and 0000 Zhong 0.00 value 11223 32461 21238 0.0 le resche overs 17 hua-A measure 47.85 97.15 49.30 0 financi eas ments al duled shares stock assets Total 0.00 -- 11223 0.00 0.00 0.00 32461 21238 0.047.85 97.15 49.30 0 -- -- (2) Derivative investment □ Applicable□Not applicable The Company has no derivatives investment in the Period 5. Application of raised proceeds □ Applicable□Not applicable There was no use of raised funds during the reporting period of the company.VIII. Sales of major assets and equity 1. Sales of major assets □ Applicable □Not applicable The Company had no sales of major assets in the reporting period. 2. Sales of major equity □ Applicable□ Not applicable IX. Analysis of main holding company/ stock-jointly companies □Applicable □Not applicable Particular about main subsidiaries and stock-jointly companies net profit over 10% In RMB Compan Type Main Register Total assets Net assets Operating Operatingy name business capital revenue profit Net profit Shenzhe Grain & n Subsidia oil 1530000000 7034025779 2999570153 4857830822 290237727 194195618 Cereals ry trading .00 .20 .98 .61 .36 .46 Group processiCo. Ltd ng grain and oil reserve service Shenzhe n Hualian Grain Subsidia Grain &oil 300000000. 1241378439 174502485.8 1316282505 -- and Oil ry trading 00 .25 9 .75 41636223.45261401. Trading 07 04 Co.Ltd.Donggu Grain & an oil Shenlia trading ng Subsidia processi 298000000. 2949449691 420479909.7 1112176887 55831332. 49327307.Logistic ry ng 00 .97 1 .36 34 77 s Co. warehou Ltd. se andlogistics Particular about subsidiaries obtained or disposed in reporting period Applicable ? Not applicable Explanation on main holding/stock-jointly companies: Shenzhen Cereals Group Co. Ltd: Business scope: general business items: grain and oil purchase and sales grain and oil storage; grain and oil and products management and processing (operated by branches); operation and processing of feed (operated by outsourcing); investment in grain and oil feed logistics projects; establishing grain and oil and feed trading market (including e- commerce market) (market license is also available); storage (operated by branches); development operation and management of free property; providing management services for hotels; investing and setting up industries (specific projects are separately declared); domestic trade; engaging in import and export business; E-commerce and information construction; and grain circulation service.Licensed business items: the following projects shall be operated only with the relevant examination and approval documents if they are involved in obtaining approval: information services (internet information service only); general freight professional transport (refrigerated preservation). Register capital is 1530000000.00 yuan. As of the end of current period total assets reached 7034025779.20 yuan and net assets amounted to 2999570153.98 yuan and shareholders’ equity attributable to parent company was 2791831945.11 yuan; in the reporting period the operation revenue net profit and net profit attributable to shareholder of parent company were 4857830822.61 yuan 194195618.46 yuan and 171228129.98 yuan respectively.Shenzhen Hualian Grain and Oil Trading Co. Ltd.: Business scope: general business items: domestic trade (except for projects that laws administrative regulations and decisions of the State Council require approval before registration); engaging in import and export business (except for projects prohibited by laws administrative regulations and decision of the State Council restricted projects can be operated only after obtaining permission); online feed sales; information consultation self-owned housing leasing (excluding talent agency services and other restricted items); international freight forwarding domestic freight forwarding (can only be operated after being approved by the transport department if laws administrative regulations State Council decision require the approval of transport department); Licensed business items: following items shall be operated only with the relevant examination and approval documents if they are involved in obtaining approval: purchase and sale of grain and oil online sales of grain and oil; information service business (internet information service business only). Register capital is 100000000.00 yuan. As of the end of current period total assets reached 1241378439.25 yuan and net assets amounted to 174502485.89 yuan and shareholders’ equity attributable to parent company was 174502485.89 yuan; in the reporting period the operation revenue net profit and net profit attributable to shareholder of parent company were 1316282505.75 yuan negative 45261401.04 yuan and negative 44920120.22 yuan respectively.Dongguan Shenliang Logistics Co. Ltd. Business scope: General business items: Container and bulk cargo storage and other supporting services; Container and bulk cargo transportation; Production: food (grain and oil) feed and feed additives; Grain procurement; Wholesale and retail: prepackaged food (grain and oil) bulk food (grain and oil) feed and feed additives; Port operations loading and unloading of steel and general cargo at ports; Road freight transportation; Water transportation water transportation services; Grain and oil storage; Internet Information Services; Technical services for grain oil and feed quality inspection; hotel management; Industrial investment; Market operation management; Supply chain management services; International freight forwarding domestic freight forwarding; Customs declaration agency and inspection agency; Property management and leasing; Import and export of goods and technology. Projects that require approval according to law can only be operated with the approval of relevant departments. Its registered capital is 2980000.00 yuan. As of the end of current period total assets reached 2949449691.97 yuan and net assets amounted to 420479909.71 yuan and shareholders’ equity attributable to parent company was 420479909.71 yuan; in the reporting period the operation revenue net profit and net profit attributable to shareholder of parent company were 1112176887.36 yuan 49327307.77 yuan and 49327307.77 yuan respectively.X. Structured vehicle controlled by the Company □ Applicable□ Not applicable XI. Prospects on future development 1. Development trend and competition layout of the industry At present the domestic grain and oil trade processing and logistics industries are full-circulation sectors with high degree of marketization numerous participating companies and fierce competition. Central enterprises and large local grain enterprises have relatively complete warehousing and logistics facilities and enjoy a number of national policies; in recent years a large number of outstanding national and regional private grain enterprises have come to the fore; with the development of China’s grain marketization foreign grain enterprises have emerged in our country’s grain market and further intensified the competition in the grain and oil industry by relying on abundant resources strong financial strength and mature management experience. The grain industry in Shenzhen is developing vigorously there are many grain and oil processing enterprises with a certain scale and many small and medium-sized enterprises in the area with the advancement of the “dual-zone construction” the population of cities in the Pearl River Delta has increased and people’s living standards have improved the competition in the food market is orderly and unprecedentedly fierce. 2. The company’s development strategy During the 14th Five-Year Plan the Company will focus on the main business of grain oil and food conform to the country’s new development requirements for the grain industry i.e. “agriculture head and industry tail” “grain head and food tail” “threechains integration” etc. seize the major historical opportunities of current significant historical opportunities such as the construction of the Guangdong - Hong Kong - Macao Greater Bay Area and the construction of the Shenzhen Pilot Demonstration Area and innovate the development strategy of “one chain two parks and N platforms” to build a regional leading “grain eastern and southerncoastal logistic corridor” with “high-quality grain source base + regional comprehensive park + urban distribution center” and create a national first-class “smart grain oil and food supply chain quality service providers”. 3. Operation plan for the year of 2025 In 2025 SZCH will earnestly implement the guiding principles of the 20th National Congress of the Communist Party of China and the Third Plenary Session of the 20th CPC Central Committee. Based on the functional positioning of state-owned grain enterprises the company will focus on operational development while fully carrying out its political responsibility for safeguarding national food security and its duty to preserve and enhance the value of state-owned assets. The company will prioritize the following key tasks:First it will consolidate its core business in grain oil and food by improving the quality and effectiveness of reserve operations and supply assurance capabilities while steadily developing the foundation of grain and oil storage and trade. Efforts will be made to optimize the supply chain service system and establish a high-performing well-integrated and high-quality industrial chain.Second SZCH will focus on both internal and external coordination to cultivate new drivers of business growth. The company will further tap into the potential of its high-quality assets strengthen and specialize its tea deep-processing segment and refine the transformation of its Dongguan Logistics operations. Each business unit will actively explore diverse opportunities to expand business volume; by leveraging external resources and capitalizing on its foundational strengths in the grain oil and food sectors the company aims to expand into diversified and high value-added business areas.Third the company will accelerate the systematic development of its brand strategy. Efforts will be made to coordinate the brand matrix enhance brand identity and deepen brand connotation with a strong focus on elevating brand influence; the company will also expand end-market channels cultivate flagship products and strengthen competitiveness and market presence.Fourth the company will remain committed to deepening reforms and unleashing internal vitality. It will reinforce strategic leadership coordinate short-term development goals with long-term strategies and enhance the systemic holistic and synergistic nature of corporate reforms; the company will continue to improve its performance evaluation system to increase efficiency and drive internal motivation.Fifth the company will comprehensively strengthen risk prevention and firmly uphold compliance standards. The company will focus on balancing reserve expansion with storage capacity capital flow and market supply and demand. In support of the reform of performance-linked compensation unified financial management will be implemented; it will continue to improve its internal control system and enhance legal risk prevention; a dual-prevention system for workplace safety and food safety will be further developed along with robust public communication and petition response mechanisms to ensure overall safety and social stability; efforts will also be made to revitalize underperforming existing assets deepen the reform of loss-making subsidiaries and advance the disposal of “non-core businesses and non-performing assets” thereby unlocking more resources and potential to better focus on core operations and competitive strengths; the company will also continue to promote strategic collaboration with Shenzhen Agricultural Power Group in areas such as industrial integration business synergy and channel sharing with the goal of achieving mutual growth and development. 4. Potential risks and mitigation measures: (1) Risk of price fluctuations in grain and oil trading Ongoing geopolitical uncertainties such as the Russia-Ukraine conflict tensions in the Middle East extreme weather events and international trade disputes have led to significant fluctuations and structural disparities in grain and oil prices both domestically and internationally. These risks may impact the company’s profitability and could result in fluctuations in the value of inventories.To mitigate these risks the company will enhance its market forecasting capabilities establish strategic partnerships implement refined procurement and sales management strengthen internal coordination and optimize its product portfolio in a targeted manner.These efforts aim to reduce the adverse impacts of grain and oil price volatility on the company’s operations. (2) Food safety risks “Quality safety” is the lifeline for the sustainable development of enterprises and food safety is an inviolable red line.Regulatory authorities have promulgated a series of regulations and systems from top to bottom targeting food safety hazards corporate responsibilities production management compliance quality safety inspections and risk monitoring and control aiming to implement the requirements of “the four strictest supervision of food safety”. Based on the diversified development of current product categories and business formats the company has issued the “SZCH Food Quality Safety Management Measures” covering grain and non-grain food categories and their key business processes to align with the existing company’s business model anddiversified product quality management. This system serving as the superior system for the company’s food safety management fills the gaps in previous system levels clarifies key position responsibilities strengthens supervision over key processes and refines and standardizes daily food quality safety management work from five aspects: on-site inspection checklists enterprise self-inspection reporting training drill records product information ledger ensuring that food products meet quality standards hygiene standards and relevant regulatory requirements. (3) Risk of intensified market competition As a representative enterprise of regional grain oil and food business compared with central enterprises and large multinational grain oil and food enterprises the company still has a certain gap in scale and brand awareness. In the future the competition in the grain oil and food industry will become more intense if the company cannot effectively promote its own brand and broaden its marketing channels it may face greater risks when market competition intensifies.In response to possible market and business risks firstly the company makes overall plans for annual procurement carefully optimizes procurement channels and ensures sufficient grain supply and orderly supply. Secondly the company continues to strengthen communication with upstream and downstream customers in the industry chain vigorously expands sales channels focuses on customer needs deepens brand and service and enhances the company's brand value and competitiveness. Thirdly promote brand building strengthen brand communication and cooperation within the industry explore high-quality brand element resources create unified brand application standards and gradually establish brand advantages.XII. Reception of research communication and interview during the reporting period □Applicable □Not applicable Reception Main content Reception time Reception Receptionplace mode object Reception talked about and Index of basic situation type Object materials of researchprovided For details please refer tothe “InvestorCommunication Record Online Value Network All 2023 annual Form of the Company'sMay 8 2024 www.ir- platform online Other performance 2022Annual Performanceonline.cn communication investors briefing Explanation Meeting” disclosed on Juchao Website (www.cninfo.com. cn) on May 8 2024 The company's business operation dividend distribution the impact of For details please refer toVIP room on E Fund fluctuations in the “Company Investorth Relations Activity RecordNovember 12 2024 the 13 floor Spot Institution Investment grain and oilof the investigation CITIC prices on the Form” disclosed on company Securities company's Juchao Website performance (www.cninfo. com. cn) on and the November 12 2024 company's corresponding countermeasures etc.XIII. The formulation and implementation of the market capitalization management system and valuation enhancement plan Whether the company formulated a market capitalization management system or not □Yes□No Whether the company disclosed the valuation enhancement plan or not □Yes□No XIV. Implementation of the Action Plan for “Double Improvement of Quality and Return” Whether the company disclosed the Action Plan for “Double Improvement of Quality and Return” or not □Yes□NoSection IV Corporate Governance I. Corporate governance of the Company During the reporting period the Company constantly improved the corporate governance structure improved the quality of corporate governance and established a sound internal control system strictly in accordance with corporate governance requirements of normative documents released by the Company Law Securities Law Corporate Governance Guidelines and Standard Operational Guidelines to Main Board Listed Companies of Shenzhen Stock Exchange. The Company continued to carry out the governance activities improved the standard operation level and safeguarded the legitimate interests of the Company and investors.Accountability among Shareholders’ General Meeting the Board of Directors and the board of supervisors were clear. We strictly implemented the rules from the Articles of Association during the reporting period as well as work regulations and other basic management system to ensure the effective implementation of the internal control system.The Company received no relevant documents with administrative regulation concerned from regulatory authorities in reporting period and has no particular about rectification within a time limit. From point of the Board corporate governance of the Company shows no difference to requirement from relevant documents with actual condition.Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for listed Company from CSRC □ Yes □ No There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance for listed Company from CSRC.II. Independence of the Company relative to controlling shareholder and the actual controller in ensuring the Company’s assets personnel finance organization and businesses By the end of the reporting period Shenzhen Agricultural Power Group is the actual controller of the Company. The Company in strict accordance with the governance rules of listed companies and other relevant provisions completely separates from the controlling shareholders in business finance personnel assets organizations and has independent full business and self- management ability. 1. Independent Business: The business of the Company is independent from controlling shareholders and has complete business and self-management ability and is not dependent on the shareholders and their affiliated enterprises which has no competition with controlling shareholder and its subordinate enterprises. The controlling shareholder has no direct or indirect intervention in the Company business activities. 2. Independent Staff: The Company has special organization to manage labor and payment and has independent perfect personnel system and collective management system. General Manager of the Company as well as deputy GM secretary of the Board CFO and other senior executives receive remuneration from the Company and don’t receive remuneration from shareholders’ unit and subordinate enterprises and holding the post except director or supervisor. 3. Independent Assets: The Company has independent and integrity asset structure; There is no situation where funds or assets of the company are occupiedby controlling shareholders for non-operational purposes. 4. Independent Organization: The Company has set up a sound organizational structure system and operates independently; there is no mixed operation between the Company and controlling shareholders. 5. Financial Independence: The Company with independent financial department has set up independent accounting system and financial management system and makes financial decision independently. With independent bank accounts and tax payment the Company strictly follows the financial system and has independent operation and standardized management.III. Horizontal Competition □ Applicable□ Not applicable IV. Annual shareholders’ general meeting and extraordinary shareholders’ general meeting held during the reporting period 1. Annual General Meeting in the reporting period Ratio of Ordinal number of meetings Type investor participati Date Date of disclosure Resolutions on Resolutions of the 1st Extraordinary General The 1st extraordinary Extraordinary Meeting of Shareholders general of 2024 (Notice No.general meeting of meeting of 72.13% 2024-01-09 2024-01-10 2024-02) disclosed onshareholders of shareholders Juchao2024 Website(www.cninfo.co m.cn) on January 10 2024 Resolutions of the Annual General Meeting Annual General of 2023 (Notice No.Meeting of 2023 AGM 72.14% 2024-05-07 2024-05-08 2024-15) disclosed onJuchao Website(www.cninfo.co m.cn) on May 8 2024 Resolutions of the 2nd Extraordinary General The 2nd Extraordinary Meeting of Shareholdersextraordinary of 2024 (Notice No.general meeting of generalmeeting of 72.27% 2024-11-14 2024-11-15 2024-26) disclosed onshareholders of 2024 shareholders Juchao Website(www.cninfo.co m.cn) on November 15 2024 2. Request for extraordinary general meeting by preferred stockholders whose voting rights are restored □ Applicable□ Not applicableV. Directors supervisors and senior executives 1. Basic information Start End Shares Number of Number ofshares shares Shares Reasons dated date held at Other held at for Name Gender Age Title Working of of period- increased decreased increasestatus office office begin in current in current changes period- or term term (share) period period (share) end (share) decrease(share) (share) of shares Party Wang Male 53 Secretary Currently 2023- 2026-Zhikai Chairman of in office 11-03 11-03 0 0 0 0 0 - BOD Gu Cheng Male 51 Director Currently 2023- 2026-in office 11-03 11-03 0 0 0 0 0 - Zhang Male 51 Director Currently 2023- 2026-Guoyuan in office 11-03 11-03 0 0 0 0 0 - Zheng Deputy Party Xiangpeng Male 49 Secretary Currently 2023- 2026- Director in office 11-03 11-03 00000- Lu Yuhe Female 47 Director CFO Currently 2021- 2026-in office 08-02 11-03 0 0 0 0 0 - Zhao Male 68 Independent Currently 2019- 2026-Rubing director in office 02-21 11-03 0 0 0 0 0 - Bi Weimin Female 68 Independent Currently 2019- 2026-director in office 02-21 11-03 0 0 0 0 0 - Liu Male 53 Independent Currently 2019- 2026-Haifeng director in office 02-21 11-03 0 0 0 0 0 - You Hongxia Female 53 Supervisor Currently 2023- 2026- in office 11-03 11-03 0 0 0 0 0 - Liu Xinqing Female 52 Supervisor Currently 2023- 2026- in office 11-03 11-03 0 0 0 0 0 - Deputy Party Zheng Male 57 Secretary Currently 2019- 2026-Shengqiao employee in office 02-21 11-03 0 0 0 0 0 - supervisor Ma Male 60 Employee Currently 2019- 2026-Zenghai supervisor in office 02-21 11-03 0 0 0 0 0 - Member of the Party Chen Committee Xiaohua Male 58 Deputy GM Currently 2020- 2026- and Secretary in office 08-24 11-03 00000- of the Board of Directors Member of the Shen Hua Male 49 Party Currently 2023- 2026-Committee in office 11-03 11-03 0 0 0 0 0 - Deputy GM Member of the Xiao Hui Male 46 Party Currently 2020- 2026-Committee in office 02-28 11-03 0 0 0 0 0 - Deputy GM Member of the Du Party Currently 2023- 2026- Jianguo Male 51 Committee in office 11-03 11-03 0 0 0 0 0 - Deputy GM Hu Deputy Party Leaving 2019- 2024- Xianghai Male 60 SecretaryDirector GM office 02-21 11-27 00000- Total -- -- -- -- -- -- 0 0 0 0 0 -- During the reporting period whether there is any departure of directors and supervisors and dismissal of senior executives or not □ Yes □ No 1. On November 17 2024 the board of directors of the company received a written resignation report submitted by Mr. Hu Xianghai the deputy secretary of the company's Party committee director and GM. Due to reaching the legal retirement age Mr. Hu Xianghai applied to resign from the positions of director and GM of the company and will no longer hold any other positions in the company after resignation.Changes of directors supervisors and senior executives □Applicable □Not applicable Name Title Type Date Reason Hu Xianghai Director Resigned 2024-11-17 Retire Hu Xianghai GM Dismissed 2024-11-17 Retire 2.Post-holding Professional background major working experience and present main responsibilities in Company of directors supervisors and senior executive (i) Director Mr. Wang Zhikai: Born in 1971 holds a master’s degree. Formerly served as deputy director and director of the Enterprise Second Division of the State-owned Assets Supervision and Administration Commission of the Shenzhen Municipal People’s Government and Director of the Strategic Development Division; deputy GM and Party Committee Member of Shenzhen Talent Anju Group Co.Ltd. He is currently member of the Party Committee of Shenzhen Agricultural Power Group Co. Ltd the secretary of the company's Party Committee and Chairman.Mr. Gu Cheng: Born in 1973 hold a master’s degree. He formerly served as the Secretary of the Youth League Committee of the Education Bureau of Longgang District Shenzhen; the director and deputy director of the Office of the Shenzhen Federation of Trade Unions minister of Legal Work minister of Grassroots Organization Construction Minister of Grassroots Organization Construction and Economic Work member of the Party Group and vice chairman of the Shenzhen Federation of Trade Unions; member of the Party Working Committee of Shenzhen’s Two New Organizations; and members of the Shenzhen Municipal Committee of the Chinese People’s Political Consultative Conference and other positions. Now he is the deputy secretary of the Party Committee and director of Shenzhen Agricultural Power Group Co. Ltd; supervisor of Shenzhen Agricultural Products Group Co. Ltd; and director of the company.Mr. Zhang Guoyuan: Born in 1973 holds a master’s degree. He previously served as a cadre of Shenzhen Special Zone Development Company; employee of Shenzhen Yantian District Investment Service Center; member of the Investment Promotion Department and deputy director of the Office of the Yantian District Economic and Trade Bureau in Shenzhen; deputy chief staff member and chief staff member of the Supervision and Inspection Department of Shenzhen State-owned Assets Supervision and Administration Commission; director of the Supervision and Inspection Department of Shenzhen State-owned Assets Supervision and Administration Bureau; Director Deputy Director and Director of the Supervision and Inspection Department of the State owned Assets Supervision and Administration Commission of the Shenzhen Municipal People’s Government; Director of the Property Rights Management and Regulations Department of the State owned Assets Supervision and Administration Commission of the Shenzhen Municipal People’s Government. He is currently member of the Party Committee and deputy GM of Shenzhen Agricultural Power Group Co. Ltd and director of the company.Mr. Zheng Xiangpeng: Born in 1975 holds a bachelor’s degree and is a senior journalist. He formerly served as an editor and journalist for Shenzhen Special Zone Daily deputy director of the Political News Department (in current period he was appointed as a member of the Longgang Street Party Working Committee and Deputy Director of the Office) deputy director and director of the Regional News Department and member of Shenzhen Special Zone Daily Editorial Committee; assistant to the President of Shenzhen Press Group director of the Office of Shenzhen Press Group and chairman of Shenzhen Press Education Media Group; deputy secretary of the Party Committee director and chairman of the Trade Union of Shenzhen Food Materials Group Co. Ltd. He is current deputy secretary and director of the company’s Party Committee.Ms. Lu Yuhe: born in 1977 master’s degree and CPA. She previously worked as the senior auditor of Ernst & Young; the independent non-executive director Director and CFO of China Trends Holdings Limited; CFO of VIEIN; Director and CFO of theShenzhen Exhibition & Convention Center Management Co. Ltd. the Director and CFO of Shenzhen Tong Chan Group and CFO of Shenzhen Yinhu Convention Center (Hotel) Co. Ltd. Now she is the Director and CFO of the Company.Mr. Zhao Rubin: born in 1956 master’s degree and professor of engineering. He successively served as the director and secretary of Gezhouba Station for EHVDC transmission from Gezhouba to Shanghai; director of office and director of foreign affairs office of Gezhouba Hydro-power Plant; the secretary of party group and GM of Huaneng South Development Company; party secretary and GM of Huaneng Real Estate Development Company; Director deputy president deputy party secretary of Great Wall Securities; president of Jingshun Great Wall Fund Management Co. Ltd.; deputy president of Sunshine Insurance Assets Management Corporation Limited; the outside director of Shenzhen Cereals Group Co. Ltd; independent director of Bros Eastern Co. Ltd. Now he serves as independent director of the Company; independent director of Southwest Securities Co. Ltd and Director of Bosera Fund Management Co. Ltd.Ms. Bi Weimin: born in 1956 doctor’s degree and a senior accountant. She successively served as engineer of the Gezhouba Power Plant assistant director and deputy director; deputy president and director of Three Gorges Finance Company; chief economist and supervisor of China Yangtze Power Co. Ltd.; deputy chief accountant of China Three Gorges Corporation the member of investment committee and director of asset finance dept. As well as the director of enterprise management dept and legal affairs department. Now she serves as the independent director of the Company.Mr. Liu Haifeng: born in 1971 doctor’ degree and a lawyer. He successively served as director of legal department of Shenzhen Property Development (Group); the partner of Guangdong Xintong Laws Firm. Now he serves as independent director of the Company and the independent director of Shenzhen Special Economic Zone Real Estate (Group) Co. Ltd and first-level partner of Guangdong Hancheng Laws Firm.(ii)Supervisor Ms. You Hongxia: Born in 1971 holds a master’s degree and is a senior accountant and registered accountant. He formerly served as a member of the Biotechnology Department of the Building Materials Bureau of Exi Prefecture and was appointed as an assistant to the district chief of Huangjindong District in Xianfeng lecturer at the Department of Business and Economics School of Economics and Trade Huazhong Agricultural University financial manager of Shenzhen Shenbao Industrial Co. Ltd. secretary of the GM’s Office assistant to the Minister of Finance and Accounting and assistant to the Minister of Human Resources; assistant to the Minister of Finance of Shenzhen Shenbao Sanjing Food and Beverage Development Co. Ltd assistant director of the Office of the Board of Directors of Shenzhen Shenbao Industrial Co. Ltd; accounting deputy director of Audit Department director of Risk Control Office director of Risk Control Department of Finance and Information Center director of Risk Control Department of Audit Risk Control Center and Deputy General Manager of Audit Risk Control Center of Shenzhen Agricultural Products Co. Ltd; deputy GM (in charge of work) and GM of the Audit Risk Management Headquarters of Shenzhen Agricultural Products Group Co.Ltd. She is current GM of the Audit Risk Control Department of Shenzhen Agricultural Power Group Co. Ltd and the supervisor of the Company.Ms. Liu Xinqing: Born in 1972 holds a bachelor’s degree and is a registered management accountant. She has previously served as an accountant of Shantou Special Economic Zone Foreign Commercial Corporation the employee accountant cashier in charge of the finance and accounting department chief clerk assistant to the department head senior manager deputy director of the fund settlement and operation center deputy director of the finance and accounting department deputy general manager and head of the fund operation department of the finance and information center head of the fund operation department of the finance center and deputy general manager of the finance center of Shenzhen Agricultural Products Co. Ltd. GM of Shenzhen Agricultural Products Small Loan Co. Ltd deputy GM of the Financial Management Headquarters (Fund Management Center) of Shenzhen Agricultural Products Group Co. Ltd GM of Shenzhen Agricultural Products Financing Guarantee Co. Ltd GM of the Financial Management Headquarters (Fund Management Center) of Shenzhen Agricultural Products Group Co. Ltd. She is currently GM of the Planning and Finance Department of Shenzhen Agricultural Power Group Co. Ltd and the supervisor of the Company.Mr. Zheng Shengqiao born in 1967 holds a bachelor degree and an intermediate accountant. He successively served as member of the special representative office of the state audit administration in Guangzhou; deputy manager of accounting department of Hong Kong Yuehai Enterprise (Group) Co. Ltd; deputy GM of CTS Logistics; CFO of the AVSHD Technology Co. Ltd; the deputy director of finance department deputy director of enterprise management department director of board office deputy secretary of discipline inspection commission secretary of the BOS and director of discipline inspection and supervision office (office of BOS) of the Shenzhen Cereals Group Co. Ltd. Now he serves as the staff supervisor deputy secretary of discipline inspection commission and director of discipline inspection and supervision office (office of BOS) of the Company.Mr. Ma Zenghai: born in 1964 master’s degree and an intermediate economist lecturer. He successively served as the general representative of Thailand project in Shenzhen Cereals Group Co. Ltd; president and GM of Shenzhen Hualian Grain & Oil Trade Co. ltd.; GM and secretary of the Party branch of Grease branch of Shenzhen Cereals Group Co. Ltd; head of the risk management department of Shenzhen Cereals Group Co. Ltd. Now he serves as staff supervisor and head of the risk management and internal audit department of the company.(iii) Senior executives Mr. Chen Xiaohua born in 1966 holds a master’s degree and is an economic manager. He served successively as chief of the secretarial section deputy director and director of the office of the board of directors and secretary of the board director and vice president of Shenzhen Agricultural Products Group Co. Ltd. concurrently served as chairman of Guangxi Higreen International Logistics Co. Ltd. chairman of Tianjin Higreen Agricultural Products Market Management Co. Ltd. and chairman of Tianjin Higreen Agricultural Products Logistics Co. Ltd. He currently serves as the member of party committee deputy general manager and secretary of the board of the company.Mr. Shen Hua: Born in 1975 holds master’s degree and is an economist. He has formerly served as the deputy manager of the Management Department of Shenzhen Buji Agricultural Products Wholesale Center deputy GM GM and Chairman of Nanchang Shenzhen Agricultural Products Wholesale Market Co. Ltd. and deputy GM of Shenzhen Agricultural Products Group Co. Ltd. He currently serves as member of the party committee and deputy GM of the Company.Mr. Xiao Hui born in 1978 holds a master’s degree and is a master of finance and a master of business administration. He served as a staff member of the Personnel and Education Department and a staff member a deputy chief staff member a chief staff member deputy director and director of the General Office of the People's Bank of China; and the deputy head of the Nanshan District People’s Government. He currently serves as the member of party committee and deputy GM of the company.Mr. Du Jianguo: Born in 1973 holds a master’s degree and an economist. He has formerly served as a clerk in the Comprehensive Control Department of Qingdao Price Bureau. deputy director of the GM's Office of Shenzhen Agricultural Products Co. Ltd chairman of Changsha Mawangdui Agricultural Products Co. Ltd director of the GM’s Office and director of the Transportation Department of Shenzhen Agricultural Products Co. Ltd chairman of Shenzhen Zhongnong Aquatic Products Co. Ltd. and Chairman of Shenzhen Buji Seafood Market Co. Ltd investment director of the Investment Department of Shenzhen Cereals Group Co. Ltd; Minister of Investment Department and Secretary of the Board of Directors of Shenzhen Duoxi Equity Investment Fund Management Co. Ltd. Chairman of Dongguan Shengliang Logistics Co. Ltd; Member of the Party Committee Deputy General Manager and Chairman of Shenzhen Zhenchu Supply Chain Co. Ltd. of Shenzhen Food Materials Group Co. Ltd. Current member of the company's party committee and deputy general manager.Post-holding in shareholding entities □Applicable □Not applicable Name Name of shareholding Positions held in Start dated End date Whether receiving entities shareholder units of office of office remuneration from term term shareholding entities(Y/N)Wang Zhikai Shenzhen Member of the Party 2023-09- N Agricultural Power Committee 01 Group Co. Ltd.Gu Cheng Shenzhen Deputy Secretary of the 2022-09- Y Agricultural Power Party Committee 01 Group Co. Ltd. Director Gu Cheng Shenzhen Supervisor 2023-01- N Agricultural Products 17 Group Co. Ltd Zhang Guoyuan Shenzhen Member of the Party 2023-08- Y Agricultural Power Committee Deputy 01 Group Co. Ltd. GM You Hongxia Shenzhen General Manager of 2023-10- Y Agricultural Power Audit and Risk Control 01 Group Co. Ltd. Department Liu Xinqing Shenzhen General Manager of 2023-10- Y Agricultural Power Planning and Finance 01 Group Co. Ltd. Department Explanation of NO employment in shareholder units Post-holding in other entities □Applicable □Not applicable Whether Name Name of other Start dated of office End date of office receiving entities Position term term remunerationfrom other entities(Y/N) Bosera Fund Zhao Rubing Management Co. Independentdirector 2017-12-01 2024-09-21 YLtd.Guangdong Liu Haifeng Hancheng Laws First-level partner 2007-02-01 Y Firm Shenzhen Special Liu Haifeng Economic Zone IndependentReal Estate director 2024-05-17 Y (Group) Co. Ltd.Punishment of securities regulatory authorities in recent three years to the Company’s current and former directors supervisors and senior executives during the reporting period □Applicable □Not applicable 3. Remuneration for directors supervisors and senior executives Decision-making procedures determination bases and actual payment of remunerations of directors supervisors and senior executives During the reporting period according to the Company Performance Management Measures the remuneration and appraisal committee of the Company’s board of directors combined with the Company’s annual business situation and individual performance appraisal result and determined the salary of senior executives. During the reporting period the subsidiary standard of independent directors is subject to the resolution by the Fifth Extraordinary General Meeting of 2019 and adjusted as 138000 yuan (tax inclusive) per year for one person.Remuneration for directors supervisors and senior executives in reporting periodUnit: 10 thousand Yuan Name Gender Age Title Post-holding Total Whether status remuneration remuneration obtained from obtained from the Company related party of the Company(Y/N) Wang Zhikai Male 53 Party Secretary and Chairman Currently in 88.01 N office GuCheng Male 51 Director Currently in 0 Y office ZhangGuoyuan Male 51 Director Currently in 0 Y office Zheng Male 49 Deputy Secretary of the Party Currently in 76.97 N Xiangpeng Committee Director office Lu Yuhe Female 47 Director and CFO Currently in 50 Y office Zhao Rubing Male 68 Independent director Currently in 13.8 N office Bi Weimin Female 68 Independent director Currently in 13.8 N office Liu Haifeng Male 53 Independent director Currently in 13.8 N office Zheng Male 57 Deputy Secretary of the Currently in 108.26 N Shengqiao Commission for Discipline office Inspection and employee supervisor Ma Zenghai Male 60 Employee supervisor Currently in 96.96 N office Chen Xiaohua Male 58 Party Committee Member Currently in 115.21 N Deputy GM and Secretary of office the Board of Directors Shen Hua Male 49 Party Committee Member Currently in 76.81 N Deputy GM office Xiao Hui Male 46 Party Committee Member Currently in 123.62 N Deputy GM office Du Jianguo Male 51 Party Committee Member Currently in 76.03 N Deputy GM office Hu Xianghai Male 60 Former Deputy Secretary of the Left office 136.66 N Party Committee Director and General Manager Total -- -- -- -- 989.93 -- Other explanation □Applicable □Not applicable VI. Responsibility performance of directors during the reporting period 1. The board of directors during the reporting period Meeting Date of meeting Disclosure date Meeting resolutionsThe “Resolution of the 5th meeting ofthThe 5th meeting of 11th session of the 11 session of the BOD” (Notice No.: BOD 2024-01-19 2024-01-20 2024-03) released on Juchao Website(www.cninfo.com.cn) on January 20 2024The “Resolution of the 6th meeting ofthThe 6th meeting of 11th session of the 11 session of the BOD” (Notice No.: BOD 2024-04-01 2024-04-02 2024-04) released on Juchao Website(www.cninfo.com.cn) on April 2 2024 The 7th meeting of 11th session of the th BOD 2024-04-12 2024-04-16The “Resolution of the 7 meeting of 11th session of the BOD” (Notice No.:2024-05) released on Juchao Website (www.cninfo.com.cn) on April 16 2024The “Resolution of the 8thmeeting ofthThe 8th meeting of 11th session of the 11 session of the BOD” (Notice No.: BOD 2024-04-25 2024-04-26 2024-10) released on Juchao Website(www.cninfo.com.cn) on April 26 2024The “Resolution of the 9th meeting ofThe 9th meeting of 11th session of the 11th session of the BOD” (Notice No.: BOD 2024-08-23 2024-08-27 2024-17) released on Juchao Website(www.cninfo.com.cn) on August 27 2024The “Resolution of the 10th meeting ofthThe 10th meeting of 11th session of the 11 session of the BOD” (Notice No.: BOD 2024-10-25 2024-10-29 2024-10) released on Juchao Website(www.cninfo.com.cn) on Oct. 29 2024The “Resolution of the 11th meeting ofthThe 11th meeting of 11th session of the 11 session of the BOD” (Notice No.: BOD 2024-11-14 2024-11-15 2024-25) released on Juchao Website(www.cninfo.com.cn) on Nov. 15 2024The “Resolution of the 12th meeting ofthThe 12th meeting of 11th session of the 11 session of the BOD” (Notice No.: BOD 2024-12-30 2024-12-31 2024-28) released on Juchao Website(www.cninfo.com.cn) on Dec. 31 2024 2. The attendance of directors to Board meetings and shareholders general meeting The attendance of directors to Board Meeting and Shareholders General Meeting Times of Board Times of Times of Absent the Times of Director meeting supposed Times of attending the Board entrusted Times of Meeting for the attend theto attend in the presence Meeting by presence Absence second time in generalreporting period communication a row (Y/N) meeting Wang Zhikai 8 8 0 0 0 N 3 Gu Cheng 8 5 2 1 0 N 0 Zhang Guoyuan 8 5 2 1 0 N 1 Zheng Xiangpeng 8 8 0 0 0 N 3 Lu Yuhe 8 6 2 0 0 N 2 Zhao Rubing 8 6 2 0 0 N 3 Bi Weimin 8 6 2 0 0 N 2 Liu Haifeng 8 7 1 0 0 N 3 Hu Xianghai 7 6 0 1 0 N 1 Explanation of not attending the board meeting in person for two consecutive times Nil 3. Objection for relevant events from directors Directors come up with objection about Company’s relevant matters □ Yes □ No No directors come up with objection about Company’s relevant matters in the Period4. Other explanation about responsibility performance of directors The opinions from directors have been adopted □ Yes □ No Explanation on whether the director’s proposal about the Company has been or has not been adopted During the reporting period independent directors of the Company were in strict accordance with provisions of Articles of Association the Company Law Guidance to Establishment of Independent Director System in Listed Companies and other relevant laws and regulations and actively attended board meetings shareholders’ meetings. The independent directors of the company issued independent professional opinions for important issues paid sustained attention to company’s operation inspected and guided the operation and management work of the company from time to time learned about internal control system implementation progress of the equity investment project etc. continued to enhance consciousness of performing duties according to provisions of law and expressed independent and impartial advice for investment outside related party transactions hiring auditors and other matters occurred during the reporting period in time. Duties performance of independent directors has improved the corporate governance structure and safeguarded the interests of the Company and its shareholders. From performance of duties of independent directors please refer to “2024 Annual Work Report of Independent Directors” disclosed in www.cninfo.com.cn.VII. Performance of Duties by Specialized Committees under the Board Meeting in the Reporting Period Number Specific Committee of Date of Important Other circumstances name Members meetings meeting Meeting content comments and performance of the held suggestions made of duties objection (ifapplicable) Deliberated the Proposal on 2024- Revising the 01-19 Company’s Internal - - Nil Audit Management System 1. Deliberated SZCH 2023 Annual Internal Control Evaluation Report; 2. Deliberated SZCH 2023 Annual Evaluated the Financial Report performance of The Audit Bi 3. Deliberated the the accounting Committee of Weimin 2024- Report on the firm in 2023 and the 11th session Zhao 04-12 Evaluation of the summarized the - Nil of Board of Rufing 5 Accounting Firm’s supervision Directors of the Zhang Performance in 2023 responsibilities Company Guoyuan and the Report on fulfilled by the the Audit audit committee.Committee’s Performance of Supervision Responsibilities 1. Deliberated SZCH 2024 First 2024- Quarter Financial 04-25 Report - - Nil 2. Deliberated SZCH 2023 Annual Internal ControlSystem Work Report 3. Deliberated SZCH 2024 Annual Major Risk Assessment Report 4. Deliberated SZCH 2024 Annual Internal Audit and Post-Investment Evaluation Work Plan Deliberated the 2024- SZCH 2024 Semi- 08-23 Annual Financial - - Nil Report 1.Deliberated SZCH 2024 Third Quarter Proposal to Financial Report Reappoint Grant 2. Deliberated the Thornton China Proposal to Propose (Special General 2024- Reappointing Grant Partnership) as 10-25 Thornton China the company’s - Nil (Special General financial audit Partnership) as the and internal Company’s 2024 control audit Annual Audit institution for Institution 2024.Deliberated the 2024- Proposal on the 04-12 Remuneration of - - NilDirectors and Senior Executives of the Company for 2023 Deliberated SZCH 2023 Annual Assessment Work Plan for Members of 2024- the Company’s 10-25 Management Team - - Nil (Including the Board The Secretary) and Full- Remuneration Time Deputy and Assessment Zhao Secretary of theCommittee of Rubing Party Committeethe Audit Committee of Bi 4 Deliberated the the 11th session Weimin of Board of Lu Yuhe Proposal on the 2024 Annual Business Directors of the 2024- Performance Company 11-14 Responsibility - - Nil Statement for Members of the Company’s Management Team Deliberated the Proposal on the 2023 Annual Assessment 2024- Results and 12-30 Remuneration - - NilDistribution Plan for the Company's Management Team (Including the Board Secretary) and Full-Time Deputy Secretary of the Party Committee Deliberated the Proposal on the Phase IV Quasi-Low 2024- Temperature Rice 01-19 Warehouse - - NilExpansion and Supporting Transformer Project of Pinghu Grain Depot. 2024- Deliberated SZCH 04-25 2024 Annual - - NilComprehensive Budget Draft Deliberated the Proposal on the Project of Shenzhen Hualian Grain and 2024- Oil Trading Co. 08-23 Ltd. Acquiring the - - Nil 49% Minority Shareholders' Equity The Strategy of Shuangyashan Committee of WangZhikai Shenliang Cerealsthe 11th session Zhao 4 Base Co. Ltd.of Board of Directors of the Rufing Company Gu Cheng 1. Deliberated the Proposal on SZCH 2025 Annual External Financing Plan 2. Deliberated the Proposal on Revising the Company’s Comprehensive Budget Management Measures 2024- 3. Deliberated the 12-30 Proposal on the - - Nil Capital Increase Project of SZCG for Shenzhen Shenliang Big Kitchen Food Supply Chain Co.Ltd; (4) Deliberated the Proposal on the Capital Increase Project of SZCG for Shenzhen Hualian Grain and Oil Trading Co. Ltd.The Nomination Zhao Committee of Rubing the 11th session Wang of Board of Zhikai 0 - - - Nil Directors of the Liu Company HaifengVIII. Works of the Board of Supervisors Does the board of supervisors discover any risks in the company during its supervisory activities during the reporting period □ Yes □ No The board of supervisors has no objection about supervision events in reporting period IX. Particulars of workforce 1. Number of Employees Professional composition Education background Employee in-post of the parent Company at period-end (people) 142 Employee in-post of main subsidiaries at period-end (people) 1020 The total number of current employees at period-end (people) 1162 The total number of current employees to receive pay (people) 1162 Retired employee’ s expenses born by the parent Company and 0 main subsidiaries (people) Professional composition Category of professional composition Numbers of professional composition (people) Production personnel 256 Salesperson 136 Technicians 210 Financial personnel 102 Administrative personnel 458 Total 1162 Education background Education Numbers (people) Postgraduate 142 Undergraduate 375 College 248 Junior college 84 High school and below 313 Total 1162 2. Remuneration Policy During the reporting period employee wages was paid monthly according to salary management provisions set by the Company and the performance-related pay was issued based on the actual situation of benefit and individual performance assessment results at the year-end remuneration and benefit are connected as a whole. 3. Training Plan In 2024 based on the deepening of the implementation of a classified and layered talent training plan the role characteristics of the phased population were sorted out from the perspective of organizational development and talent demand focusing on the talent management pyramid that has been gradually built in the early stage. Based on the construction of talent echelons training goals and directions were formed while actively responding to the training needs of higher-level units to carry out training effectively.Continuously improved the professional level and ability of talent cultivation in the company achieved efficient utilization of resources and provided a continuous source of intelligence for the company’s development.4. Labor outsourcing □ Applicable□ Not applicable X. Profit distribution plan and capitalizing of common reserves plan Formulation Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend policy during the Reporting Period □ Applicable □ Not applicable The profit distribution policy of the Company is specified in the Article of Association as: (1) Profit distribution of the Company should pay attention to the reasonable investment return to investors and the profit distribution policy should maintain continuity and stability; (2) The Company may distribute dividends in the form of cash or a combination of cash and stocks and may pay interim cash dividends; (3) The following conditions shall be met at the same time when the Company intends to implement cash dividends: 1. Earnings per share for the year is not less than 0.1 yuan; 2. The audit institution shall issue a standard unqualified audit report on the company’s annual financial report; 3. The company has no major investment plans or major cash expenditures (except for fund-raising projects). Major investment plans or major cash expenditures refer to the cumulative expenditures that the company intends to invest acquire assets or purchase equipment in the next twelve months reach or exceed 30% of the company’s most recent audited total assets and exceed 50 million yuan; (4) In principle the company’s annual profits distributed in cash should not be less than 10% of the attributable profits realized in the year; and the company’s cumulative profits distributed in cash in the last 3 years should not be less than 30% of the annual average attributable profits realized in the last 3 years. Under the premise of ensuring the distribution of cash profits the company can additionally adopt the method of stock dividend distribution for profit distribution; the company’s annual profit distribution amount shall not exceed the company’s accumulated undistributed profits at the end of the year and shall not damage the company’s ability to continue operations; (5) The specific profit distribution plan shall be drawn up by the board of directors and submitted to the general meeting of shareholders for deliberation. The company provides a variety of ways to accept the recommendations and supervision of all shareholders independent directors and supervisors on the company’s dividends distribution. If the annual reporting period is profitable but the board of directors does not propose a cash dividend plan in accordance with the Articles of Association it shall be disclosed in the periodic report the reasons for not proposing a cash dividend plan in accordance with the Articles of Association and the purpose of funds not used for dividends but retained by the company. The independent directors shall express independent opinions on this purpose. In addition to on-site meetings the company shall also provide shareholders with an online voting platform when convening a general meeting of shareholders; (6) If the company has not distributed cash profits in the last 3 years it cannot issue new shares to the public issue convertible corporate bonds or allot shares to original shareholders;(7) Where a shareholder illegally occupies the company’s funds the company shall deduct the cash dividends distributed to the shareholder in order to repay the capital occupied; (8) When the company adjusts its profit distribution policy it should take the protection of shareholders especially small and medium shareholders’ rights and interests as the starting point for detailed argumentation and the board of directors should submit it to the general meeting of shareholders for review and approval by a special resolution while independent directors should express clear independent opinions; (9) The company provides multiple channels (telephone fax e-mail interactive platform etc.) to accept all shareholders’ suggestions and supervision on the company's dividends.The foreign exchange conversion rate of domestically-listed foreign share dividends is calculated based on the central parity rate of Hong Kong dollar against RMB announced by the People’s Bank of China on the first working day after the resolution date of the general meeting of shareholders.During the reporting period the company’s profit distribution complied with the company’s articles of association and review procedures and fully protected the legitimate rights and interests of small and medium investors. Independent directors expressed their opinions and the profit distribution procedures were compliant and transparent. During the reporting period the company’s profit distribution policy has not been adjusted or changed.Special explanation on cash dividend policy Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y Well-defined and clearly dividend standards and proportion (Y/N): Y Completed relevant decision-making process and mechanism (Y/N): Y Independent directors perform duties completely and play a proper role (Y/N): Y If the company does not distribute cash dividends specific reasons should be disclosed as well as the measures to be Y taken next to enhance investor returns: Minority shareholders have opportunity to express opinions and demands totally and their legal rights are fully protected Y (Y/N): Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Y/N): NA The Company gains profits in reporting period and the parent company has positive profit available for distribution to shareholders of the parent company but no cash dividend distribution plan has been proposed □ Applicable□ Not applicable Profit distribution plan and capitalizing of common reserves plan for the Period □ Applicable □ Not applicable Bonus shares for every 10-share (Share) 0 Dividends for every 10-share (RMB) (tax inclusive) 1.5 Equity base of distribution plan (Share) 1152535254 Cash bonus distribution (RMB) (tax inclusive) 172880288.10 Cash bonus distribution in other ways (i.e. share buy-backs) 0.00 (RMB) Total cash bonus (including other ways) (RMB) 172880288.10 Profit available for distribution (RMB) 1388762768.13Ratio of total cash dividend (other ways included) in total profit 100% distribution Cash dividend In case the Company is in a development stage and has the arrangement of major capital expenses the ratio of cash dividend in profit distribution should reach a minimum of 20% in profit distribution.Detailed explanation on profit distribution or capital accumulation fund conversion plan After audited by Grant Thornton Certified Public Accountant LLP (Special General Partnership) in consolidate statements for year of 2024 the net profit attributable to shareholders of parent company amounted to 325309578.52 yuan; As of Dec. 31 2024 the profit of parent company that can be distributed for shareholders was 1388762768.13 yuan.In accordance with relevant regulations and Article of Association combined with the actual development needs of the Company and in consideration of the interests of shareholders BOD plans to submit the equity distribution plan for year of 2024 to shareholders general meeting: based on total share capital 1152535254 shares of the Company on Dec. 31 2024 distribute 1.5 yuan (tax inclusive) for every 10-share to all shareholders with zero share bonus (tax inclusive) and no capital share converted from capital reserve.XI. Implementation of the Company’s stock incentive plan employee stock ownership plan or other employee incentives □ Applicable□Not applicable During the reporting period the Company has no stock incentive plan employee stock ownership plan or other employee incentives that have not been implemented.XII. Construction and implementation of internal control system during the reporting period 1. Construction and implementation of internal control In accordance with the Company Law the Guidelines for Governance of Listed Companies the relevant regulations of the China Securities Regulatory Commission and other relevant national laws and regulations the company has established the general meeting of shareholders the board of directors the board of supervisors the party committee and managers. The board of directors consists of strategy committee remuneration and appraisal committee nominations committee and audit committee clarified the responsibilities and authorities of decision-making execution and supervision and formed a scientific and effective division of responsibilities and checks and balances mechanism providing a good internal environment for the establishment and operation of the company’s internal control system.On the aspect of construction and implementation of the internal control system the board of directors is responsible for the establishment improvement and effective implementation of the internal control system the board of supervisors supervises the establishment and implementation of the internal control system of the board of directors and the managers are responsible for organizing the daily operation of the company’s internal control system and the company’s risk management and internal audit department is specifically responsible for organizing and coordinating the establishment implementation evaluation and daily work of the internal control system.The company has established management systems and procedures in line with internal control management norms in the fields of organizational structure development strategy internal audit and supervision human resources social responsibility corporate culture capital management procurement business sales business asset management engineering project management research and development guarantee business investment management contract management budget management financial reports and information communication which have been effectively implemented in the daily business operation and management process.2. Details of major defects in internal control identified during the reporting period □Yes □No XIII. Management and controls on subsidiaries during reporting period Problems Name Integration plans Integration encountere Measures Progress Follow-up progress d in taken to in solution integration resolve solution plan N/A N/A N/A N/A N/A N/A N/A XIV. Internal control self-appraisal report or internal control audit report 1. Self-appraisal report of internal control Disclosure date of full internal control evaluation report April 29 2025Disclosure index of full internal control “Internal control self-appraisal report of Shenzhen Cereals Holdings Co. Ltd. inevaluation report 2024” published on Juchao Website (http: //www.cninfo.com.cn) The ratio of the total assets of entities included in the scope of evaluation accounting for the total assets on the 100.00% Company’s consolidated financial statements The ratio of the operating income of entities included in the scope of evaluation accounting for the operating 100.00% income on the Company’s consolidated financial statements Defects Evaluation Standards Category Financial Reports Non-financial Reports 1. Major defects: Defect alone or together 1. Qualitative criteria for major defects with other defects in a timely manner are as follows: cause unpreventable or undetectable and (1) The lack of democratic decision- uncorrectable material misstatement in the making process such as the lack of financial statements. decision-making on major issues an The Company may indicate the presence important appointment and dismissal of significant deficiencies in internal of cadres major investment decisions control over financial reporting if large sums of money using the following circumstances: decision-making process; (1) The directors supervisors and senior (2) Decision-making process is not management fraud; scientific such as major policy (2) Enterprise corrects mistake which has mistakes resulting in significant been published in financial statements; property damage to the Company; Qualitative criteria (3) CPA finds material misstatement in (3) Serious violations of national lawscurrent financial statements but internal and regulations; control during operation fails to find the (4) Loss of key executives or loss of a misstatements; large number of key talents; (4) Oversight of internal control by (5) Frequent negative news in media corporate audit committee and the internal which causes nationwide impact.audit is invalid; 2. The qualitative criteria for important (5) Particularly important or significant defects are as follows: deficiencies found during internal control (1) The decision-making process is not has not been rectified; perfect; (6) The lack of business-critical system or (2) The company’s internal invalid system. management system has not been 2. Important defect: defect alone or effectively implemented resulting in together with other defects in a timely losses; manner cause unpreventable or (3) Frequent occurrence of negativeundetectable and uncorrectable material news in the media with certain misstatement in the financial statements influence; although not reach and exceed the level of (4) The general defects in the internal importance should lead to management control evaluation have not been attention misstatements. corrected. 3. General Defects: other internal defects 3. General defects refer to other do not pose a significant or important internal control defects that do not defect control deficiency. constitute major defects or important defects.Major defects: Major defects: the amount of direct Potential misstatement of total assets ≥ 1% property loss ≥ 12 million yuan have of total assets; been officially disclosed outside the Potential misstatement of operating Company disclosed in periodic reports revenue ≥ 1% of operating income; and adversely affected.Potential misstatement of total profit≥ 5% Important defects: 3 million yuan < the of total profit. amount of direct property loss < 12 Important defects: million yuan punished by the state 0.5% of total assets ≤ Potential government but no negative impact on misstatement of total assets <1% of total the disclosure of the company’s assets regular reports; Quantitative standard 0.5% of operating income≤ Potential General defects: the amount of directmisstatement of operating revenue <1% of property loss ≤ 3 million yuan operating income punished by the provincial (including 2.5% of total profit≤ Potential provincial) government but no misstatement of total profit <5% of total negative impact on the disclosure of profit; the company’s regular reports; General defects: Potential misstatement of total assets <0.5% of total capital; Potential misstatement of Operating revenue <0.5% of operating income; Potential misstatement of total profit <2.5% of total profit; Number of significant defects in financial reports 0 Number of significant defects in non- financial reports 0 Number of important defects in financial reports 0 Number of important defects in non- financial reports 0 2. Internal control audit report □ Applicable □ Not applicable Deliberations in Internal Control Audit Report Grant Thornton Certified Public Accountant LLP (Special General Partnership) believes as of Dec. 31 2024 the company maintained effective internal control over financial reporting in all significant aspects in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations Disclosure details of audit report of internal control Disclosed Disclosure date of audit report of internal control (full-text) 2025-04-29 Index of audit report of internal control The internal control audit report of SHENZHEN CEREALS HOLDINGS CO. LTD.(full-text) in 2024 published on Juchao Website (www.cninfo.com.cn) Opinion type of auditing report of internal control Standard unqualified Whether the non-financial report had major defects No Whether the accounting firm issues an internal control audit report with non-standard opinions or not □ Yes □ No Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of directors□ Yes □ No XV. Rectification of Self-examination Problems in Special Governance Actions in Listed Company During the reporting period the company conducted self-examination and self-correction on corporate governance in accordance with the requirements of the Announcement on Launching Special Actions on Corporate Governance of Listed Companies of the China Securities Regulatory Commission. Through this self-examination the company has established and improved a relatively complete and reasonable corporate governance structure and internal control system in accordance with relevant laws and regulations such as the Company Law Guidelines for Governance of Listed Companies Self-Regulatory Guidelines for Listed Companies No. 1- Standardized Operation of Main Board Listed Companies etc. The company didn’t find any major deficiencies and risks in standardized operations.In the future the company will focus on improving the high-quality development of the listed company continue to improve the corporate governance system effectively improve the effectiveness of corporate governance and scientificity of decision-making and achieve stable operation and sustainable development of the company.Section V. Environmental and Social Responsibilities I. Major environmental Are the listed company and its subsidiaries a key pollutant discharge unit announced by the environmental protection authorities □Yes □ No Administrative punishment for environmental problems during the reporting period Company name or Reason for Punishment Impact on the production and The company’s Violation subsidiary name punishment result operation of listed company rectification measures NA NA NA NA NA NA Other environmental information disclosed by reference to key pollutant discharge entities Nil Measures taken to reduce carbon emissions during the reporting period and their effectiveness □ Applicable□Not applicable Reasons for not disclosing other environmental information The company attached great importance to environmental protection work and each subsidiary has built corresponding environmental protection facilities according to the actual situation of production and operation to treat waste gas dust wastewater and solid waste generated in the production process so as to make its emissions reach the national and local relevant standards.II. Social responsibility During the reporting period the Company has been strictly in accordance with Company Law Securities Law Articles of Association and other relevant laws and regulations continues to improve governance structure and regulate operation. The Company attaches importance to social responsibility sustains attention to social create value integrity management according to law provides consumers with safe and secure products high-quality green and healthy products to enhance the capacity for sustainable development and overall competitiveness; and make efforts to improve management enhance innovation capability and core competencies; the Company upholds a fair just and open principles of treatment for all investors with particular emphasis on safeguarding the interests of minority shareholders; the Company strictly complies with national environmental laws and regulations thoroughly implements green philosophy strengthens ecological protection complies with the overall development of the country and society and strives to achieve economic and social benefits short-term interests and long-term interests of their own development and social development coordination thus achieving healthy and harmonious development of the Company staff society and environment.III. Consolidating and expanding the achievements of poverty alleviation and rural revitalization In 2024 SZCH adhered to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era thoroughly studying and implementing the guiding principles of the 20th National Congress of the Communist Party of China as well as the Second and Third Plenary Sessions of its 20th Central Committee. It earnestly implemented General Secretary Xi Jinping’s important statements on work related to agriculture rural areas and farmers (the “three rural” issues) and his key instructions on rural revitalization.Focusing on the provincial government’s “High-Quality Development Project for Hundreds of Counties Thousands of Towns andTens of Thousands of Villages” and the municipal government’s rural revitalization assistance initiatives the company activelyfulfilled its social responsibilities. Leveraging its professional strengths in the grain industry it continued to deepen efforts in rural revitalization contributing to the consolidation and expansion of achievements in poverty alleviation. 1．Fulfilled support responsibilities and united efforts for rural revitalization The Party Committee of the company attached great importance to rural revitalization integrating it into the key agenda of the company. The company’s leadership has conducted in-depth visits and field research in paired support villages to stay informed about the working conditions morale of stationed village officials and the progress of support projects thereby enhancing the quality and efficiency of rural revitalization efforts. In alignment with the provincial “1310” strategic deployment the company organized Party member representatives to participate in afforestation activities in Tuocheng. Based on the operational landscape of local peanut oil processing enterprises promoted the establishment of the “SZCG Edible Oil Branch Support and Co-Development Base.” Additionally selected one staff member to join the Shenzhen Work Team for Town and Village Assistance and has been stationed in Chaonan District Shantou to carry out targeted support work. 2．Deepened industrial support and building a diversified assistance system In terms of standardization efforts SZCH has continued to strengthen its support for the application of “Zhenpin” certification assisting five enterprises in Longchuan County in completing multiple batches of agricultural product certifications. This initiative promoted the standardization and branding of the region’s premium agricultural products. Flthe company supported stationed village officials in establishing a “Feed Processing Cooperative+” alliance supplying 40 tons of feed materials to a farming and breeding alliance reducing costs by nearly RMB 60000. Dongguan Logistics signed a 100-ton feed material supply contract with a local cooperative representative to jointly build industrial capacity helping to expand breeding scales and lower production costs.Meanwhile Shenbao Huacheng established three “Shenbao Huacheng Yunnan Black Tea Production Bases” in Yunnan Province. Its R&D personnel have provided ongoing technical support and guidance in tea-producing mountainous areas such as Yunnan Fujian and Guizhou helping to enhance the professional skills of tea farmers and effectively addressing employment challenges for local women. Additionally Doximi launched the “Doximi Assistance Mall” sourcing specialty agricultural products from regions including Bama in Guangxi and Luochuan in Shaanxi. Covering more than ten categories such as fruits nuts and grains this initiative has strengthened the agricultural supply chain and boosted farmers’ incomes and benefits. 3．Focused on targeted assistance and cultivated drivers of distinctive development Focusing on cultural empowerment SZCH’s stationed village officials deeply explored Tuocheng’s local culture and assisted the work team in designing and creating an original “Tuocheng” cultural IP. A variety of cultural products including themed T-shirts and gift bags were launched to enhance the brand influence of products from the supported region. In carrying out charitable assistance the company collaborated with caring enterprises and public welfare foundations to donate desks chairs and recreational supplies to Shengli Primary School while also completing a safe electricity upgrade project. It also provided long-term educational sponsorships for two orphaned sisters and offered medical assistance to a veteran couple. Moreover the company actively promoted Tuocheng’s public welfare job placement program successfully securing job quotas that helped increase the incomes of five disadvantaged households. 4．Strengthened consumer-based assistance to promote virtuous cycle of income growth and consumption upgrading The company continued to implement consumer-based assistance initiatives actively mobilizing its subsidiaries and grassroots labor unions to purchase agricultural and sideline products from formerly impoverished areas. By fully leveraging the positive role of consumption in supporting rural revitalization SZCH has effectively contributed to income growth for farmers. In 2024 alone it procured over RMB 6 million of products under the consumer assistance program.Section VI. Important Events I. Implementation of commitment 1. Commitments completed in Period and those completed till the end of the Period from actual controller shareholders related parties purchaser and companies □Applicable □ Not applicable Commitment Made Type of Commitment Commitment reason by commitments Content of commitments date term Implementation Commitment to non-normal business enterprises: For non-normal business enterprises under Shenzhen Cereals Group (including but not limited to enterprises that have been revoked business licenses discontinued operation etc.) the commitment party will fully assist urge and promote Shenzhen Cereals Group to implement the corresponding write-off procedures. After Shenzhen the completion of this Agricultural Other reorganization if Shenzhen Power commitments Cereals Group or the listed 2018-03-23 Implement Normal Group company is called to as promised performance account receives administrative punishment or suffers any losses due to the abnormal operation of the non-normal business Commitments enterprises or the failure to in assets handle write-off procedures reorganization in time the commitment party will bear the relevant legal liability and fully compensate the listed company and the target company within 30 working days after the actual loss occurs.Relevant Commitments Regarding the Existence of Flaws in Leased Property: The leased house property of Shenzhen Cereals Group and its holding subsidiaries has Shenzhen the following conditions: (1) Agricultural Other The lessor has not provided Implement Normal Power commitments the ownership documentary 2018-03-23 as promised performance Group evidence of the property and/or the documentary evidence proving the lessor has the right to rent out the house property. (2) The lease term of part of the leased house property is more than20 years; (3) Shenzhen Cereals Group and its subsidiaries sublet part of the leased house property to a third party without the consent of the lessor; (4) The leased house property of Shenzhen Cereals Group and its holding subsidiary has not been registered for the housing lease. If Shenzhen Cereals Group and its holding subsidiaries are imposed any form of punishment by the relevant government departments or assume any form of legal responsibility or suffer from any losses or expenses because their leased place and / or house property do not comply with relevant laws and regulations the commitment party will be willing to bear any losses damages claims costs and expenses incurred suffered and assumed by Shenzhen Cereals Group and its holding subsidiaries and protect Shenzhen Cereals Group and its holding subsidiaries from damages.In addition the commitment party will support Shenzhen Cereals Group and its holding subsidiaries to actively advocate their rights against the corresponding parties in order to safeguard and protect the interest of Shenzhen Cereals Group and the listed companies to the maximum extent.Commitment Letter on Flaws in House Property and Land: In the case that some of the house properties held by Shenzhen Cereals Group fail to rename the obligee of the property ownership certificate the commitment party will fully assist urge Shenzhen and promote Shenzhen Agricultural Other Cereals Group or its Power commitments subsidiaries to go through 2018-03-23 Implement Normal the formalities. After the as promised performanceGroup completion of this reorganization if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers any losses due to the failure to rename the obligee of the property ownership certificate the commitmentparty will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. In view of the fact that some house properties held by Shenzhen Cereals Group fail to complete the registration procedures for ownership transfer the commitment party will fully assist urge and promote Shenzhen Cereals Group to complete the relevant transfer procedures. After the completion of this reorganization if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers any losses due to the failure to rename the obligee of above-mentioned property the commitment party will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. In response to the conversion of non- market commercial housing held by Shenzhen Cereals Group into market commercial housing the commitment party will fully assist urge and promote Shenzhen Cereals Group to go through the formalities.After the completion of this reorganization if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers any losses due to the failure to complete the conversion of non-market commercial housing into market commercial housing the commitment party will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. In view of the fact that some house properties of Shenzhen Cereals Group have not been renewed for the land useperiod the commitment party will fully assist urge and promote Shenzhen Cereals Group to renew the corresponding land use right period. After the completion of this reorganization if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers any losses due to the failure to renew the land use right period the commitment party will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. In view of the fact that some house properties of Shenzhen Cereals Group have not been registered for ownership transfer or renewed the land use period the commitment party will fully assist urge and promote Shenzhen Cereals Group to handle the corresponding land use rights renewal and ownership transfer registration procedures.After the completion of the reorganization if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers any losses due to the failure to complete the above-mentioned land use right renewal and ownership transfer registration procedures the commitment party will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. In view of the fact that the property of SZCG Sungang Warehouse has not completed the registration for converting noncommercial housing into commercial housing after the completion of the reorganization if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers any losses as the property of SungangWarehouse is not registered for converting noncommercial housing into commercial housing in time the commitment party will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. In view of the fact that the land and property of SZCG Shuguang Grain Depot have not passed the completion acceptance nor completed the registration of commercial housing after the completion of the reorganization if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers any losses as the land and property of Shuguang Grain Depot have not timely passed the completion in time nor completed the registration of commercial housing the commitment party will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. In view of the fact that the property of SZCG Flour Factory has not completed the conversion of non-commercial housing into commercial housing and the relocation after the completion of the reorganization if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers from any losses as Flour Factory doesn’t complete the conversion of non-commercial housing into commercial housing and the relocation the commitment party will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. In view of the fact that the land of Heilongjiang Hongxinglong Nongken Shenxin Grain Industry Park Co. Ltd. asubsidiary of Shenzhen Cereals Group has not applied for land use right certificates the commitment party will fully assist urge and promote the subsidiary of Shenzhen Cereals Group to manage the application procedures of the corresponding land use right certificates. After the completion of the reorganization if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers any losses because the land use right certificate cannot be issued due to any ownership disputes in the above-mentioned land use right the commitment party will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. If Shenzhen Cereals Group and its holding subsidiaries are required to take back the sites and/or properties or imposed any form of punishment by the relevant government departments or assume any legal liability or suffer any losses or expenses arising from the modification for flaws in sites and/or properties as the above- mentioned and other self- owned or leased sites and/or properties fail to comply with the relevant laws and regulations the commitment party will assume any losses damages claims costs and expenses incurred suffered and assumed by Shenzhen Cereals Group and its holding subsidiaries and protect the list companies and Shenzhen Cereals Group from damages. In addition the commitment party will support the company and its holding subsidiaries to actively advocate their rights against the corresponding parties in order to safeguard and protect the interest of the company and its holding subsidiaries to the maximum extent.Shenzhen Other Commitment Letter on the 2018-03-23 Implement NormalAgricultural commitments Company’s System Reform as promised performance Power and System Evaluation of Group Shenzhen Cereals Group in 1998: After the completion of this restructuring if Shenzhen Cereals Group or the listed company is called to account receives administrative punishment or suffers any losses as the system reform is not evaluated or other reasons related to this reform the commitment party will bear the relevant legal liability and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs.Commitment on the public shares: After the completion of the transaction the commitment party will cautiously nominate directors and supervisors and will not nominate candidates for directors supervisors and senior management to the listed company that will cause the proportion of public shares Shenzhen of the listed company not Agricultural Other meet the requirements of the Implement Normal Power commitments Listing Rules of Shenzhen 2018-03-23 as promised performance Group Stock Exchange.; nor will vote for the relevant shareholders’ meeting and/or board resolutions for selecting directors supervisors and senior executives of listed companies that will make the proportion of public shares of listed companies not meet the requirements of the Listing Rules of Shenzhen Stock Exchange.Commitment letter of Shenzhen Food Materials Group Co. Ltd on pending litigation of Shenzhen Cereals Group Co. Ltd.: Shenzhen Shenbao Industrial Co. Ltd. (hereinafter Shenzhen referred to as Agricultural Other “Shenshenbao” “ListedPower commitments Company”) intends to 2018-04-02 Implement Normal purchase the 100% equity of as promised performanceGroup Shenzhen Cereals Group Co. Ltd. (hereinafter referred to as “SZCG” “target company”) held by the shareholders of SZCG through issuance of shares.In view of the two unfinished majorlawsuits/arbitration of SZCG Shenzhen Food Materials Group Co. Ltd (hereinafter referred to as “the commitment party”) the controlling shareholder of SZCG has made the following commitments: If SZCG and its controlling subsidiaries suffer any claims compensation losses or expenses due to the unsettled major lawsuits/arbitration about the contract dispute of international sale of soybean with Noble Resources Co.Ltd. and the contract dispute with Guangzhou Jinhe Feed Co. Ltd. and Huangxianning Import Agent the commitment party will assume the compensation or loss caused by the above two outstanding major lawsuits/arbitration.Commitment letter of Shenzhen Food Materials Group Co. Ltd. on risks of making a supplementary payment for the rent at earlier stage of Pinghu Grain Depot: Shenzhen Shenbao Industrial Co. Ltd. intends to purchase the 100% equity of Shenzhen Cereals Group Co. Ltd. (hereinafter referred to as “SZCG”) held by the shareholders of SZCG through issuance of shares.Shenzhen Shenzhen Food Materials Agricultural Other Group Co. Ltd. (hereinafter Implement NormalPower commitments referred to as “the 2018-04-02 as promised performanceGroup commitment party”) the controlling shareholder of SZCG has made the following commitments: If SZCG needs to make a supplementary payment for the rent before assessment basis date to the property right unit of Pinghu Grain Depot (or its authorized unit) the total amount of the rent and other related charges and expenses shall be borne by the commitment party.Commitment letter on the house properties of Shenzhen Shenzhen Cereals Group and Agricultural Other its subsidiaries that have not Power commitments obtained the housing 2018-04-02 Implement Normal ownership certificate: as promised performanceGroup Shenzhen Shenbao Industrial Co. Ltd. (hereinafter referred to as “Shenshenbao”and “listed company”) intends to purchase the 100% equity of Shenzhen Cereals Group Co. Ltd. (hereinafter referred to as “SZCG” “target company”) held by the shareholders of SZCG through issuance of shares.Shenzhen Food Materials Group Co. Ltd (hereinafterreferred to as “thecommitment party”) the controlling shareholder of SZCG has made the following commitments: If SZCG and its subsidiaries suffer any administrative punishment or losses due to their house properties without the housing ownership certificate the commitment party will bear the relevant legal responsibilities and fully compensate the listed company and SZCG within 30 working days after the actual loss occurs.Commitment on Shenzhen Food Materials Group Co.Ltd to accept the restricted shares of non-tradable shares reform of Shenzhen Shenbao Industrial Co. Ltd. held by Shenzhen Investment Holdings Co. Ltd.: Shenzhen Food Materials Group Co. Ltd (hereinafterreferred to as “FoodMaterials Group”) accepts 79484302 shares of A shares of Shenshenbao A (000019) (including 66052518 shares of unrestricted A shares and Shenzhen 13431784 shares of Agricultural Commitment restricted A shares ) held by Power on restricted Shenzhen Investment 2018-04-04 Implement Normal Group sale of shares Holdings Co. Ltd.as promised performance (hereinafter referred to as“Shenzhen InvestmentHoldings”) by the free transfer totally accounting for 16% of the total share capital of Shenshenbao.Shenzhen Investment Holdings made the following commitments in the reform of non-tradable shares ofShenshenbao in 2006: “Tomake effective and long- term incentives for the management after the completion of the share reform Shenzhen Agricultural Products Co.Ltd. (hereinafter referred toas “Agricultural Products”) and Shenzhen Investment Holdings the company’s non-tradable shareholders will sell their shareholdings after consideration which account for 6%-8% of the company’s total share capital to the management of the company in three years based on the shareholding ratio of Agricultural Products and Shenzhen Investment Holdings after the share reform (i.e.accounting for 6%-8% of the company’s total share capital of 181923088 shares afterthe share reform).” Food Materials Group made a commitment that after the completion of the free transfer of the state-owned shares Food Materials Group would continue to perform the above commitments it made when Shenzhen Investment Holdings makes the non- tradable shares reform to Shenshenbao which is effective in the long run.Commitment Letter on Avoiding Horizontal Competition: In view of the fact that Shenzhen Shenbao Industrial Co. Ltd.(hereinafter referred to as “Listed Company”) intends to acquire 100% equity of Shenzhen Cereals Group Co. Ltd. held by Shenzhen Food Materials Group Co.Ltd(hereinafter referred to as “the Company”) by issuing Commitments shares to purchase assets the on inter- Company has made the Shenzhen industry following commitments: 1.Agricultural competition As of the issue date of thisCommitment Letter the 2018-06-08 Implement NormalPower related Group transactions Company and other as promised performance and capital enterprises controlled by the occupancy Company have not engagedin any business or activity that directly or indirectly constitute horizontal competition to the Listed Company and its subsidiaries in the business and guarantees that it will not engage or induce any enterprise controlled by the Company to engage in any business or activity that directly or indirectly constitute horizontal competition to the ListedCompany and its subsidiaries in the future. 2. If the business opportunity obtained by the Company and other enterprises controlled by the Company constitutes horizontal competition or may constitute horizontal competition to the main business of the Listed Company and its subsidiaries the Company will immediately notify the Listed Company and try its best to give the business opportunity to the Listed Company to avoid horizontal competition or potential horizontal competition with the Listed Company and its subsidiaries and ensure the interests of Listed Company and other shareholders of Listed Company are not impaired. 3. If the main business of the Listed Company and its subsidiaries constitutes horizontal competition or may constitute horizontal competition to the Company and other enterprises controlled by the Company due to business development or extension the Company and other enterprises controlled by the Company shall take the following feasible measures based on specific circumstance to avoid competition with the Listed Company: (1) Stop business that constitutes competition or may constitute competition to the Listed Company; (2)Transfer the competitive businesses and assets to the Listed Company at fair prices; (3) Transfer the competitive business to an unrelated third party; (4) Other ways to protect the interests of the Listed Company; 4. If the Company violates the above commitments and causes losses to the Listed Company the Company will compensate the Listed Company for the incurred losses after the losses are determined. 5. The above commitments continue to be valid during the period when the Company is the controlling shareholder ofthe Listed Company.Commitment Letter on Reducing and Regulating Related Transactions: In view of the fact that Shenzhen Shenbao Industrial Co. Ltd. (hereinafterreferred to as “ListedCompany”) intends to acquire 100% equity of Shenzhen Cereals Group Co. Ltd. held by Shenzhen Food Materials Group Co.Ltd(hereinafter referred to as “the Company”) by issuing shares to purchase assets the Company has made the following commitments: 1.The enterprises directly or indirectly controlled or affected by the Company and the restructured company and its holding companies will regulate and minimize the related transactions. For related transactions that cannot be avoided or have reasonable reasons to occur the Company promises to follow the market-oriented Commitments principle of justice fairness on inter- and openness and sign Shenzhen industry agreements in accordance Agricultural competition with relevant laws and Implement Normal Power related regulations regulatory 2018-06-08 as promised performance Group transactions documents and articles of and capital association perform legal occupancy procedures fulfill information disclosure obligations and handle relevant approval procedures in accordance with the law and ensure not to damage the legitimate rights and interests of the company and other shareholders through related transactions. 2. The enterprises directly or indirectly controlled or affected by the Company will strictly avoid borrowing from the company and its holding and shareholding companies occupying the funds of the company and its holding and shareholding companies or embezzling the company’s funds by taking advance payments and compensatory debts from the company and its holding and shareholding companies. 3. After the completion of this transaction the Company will continue to exercise its shareholder rights in strictaccordance with the relevant laws and regulations regulatory documents and the relevant provisions of the Articles of Association; and fulfill its obligation of avoiding voting when the company’s general meeting of shareholders is voting on related transactions involving the Company. 4.The Company guarantees not to obtain any improper interests through the related transactions or cause the company and its holding and shareholding companies to bear any wrongful obligations. If the company or its holding and shareholding companies suffer loses or the interests of the company or its holding and shareholding companies are embezzled by related transactions the Company will the losses of the company and its holding and shareholding companies.Commitment on the Standardized Operation of Listed Company: Shenzhen Shenbao Industrial Co. Ltd.intends to purchase 100% equity of Shenzhen Cereals Group Co. Ltd. (hereinafter referred to as “SZCG”) held by Shenzhen Food Materials Group Co. Ltd (hereinafterreferred to as “theCompany”) through issuance of shares. In response to the above transactions the Company has made the following commitments: After the completion of this Shenzhen transaction the commitment Agricultural Other party promises to ensure that Implement Normal Power commitments the listed company will 2018-06-08 as promised performance Group strictly follow the requirements of laws and regulations such as the“Guidelines for theGovernance of ListedCompanies” and the changes in internal management and external operation and development of listed company to revise the Articles of Association and related rules of procedure so as to adapt to the business operations and corporate governance requirements after the reorganization continue to improve the governance structure oflisted company continuously strengthen the system construction to form a corporate governance structure that each performs their own duties effectively checks and balances makes scientific decisions and coordinates the operation so as to more effectively and feasibly protect the interests of the listed company and all its shareholders. The commitment party will urge the listed company to perform the functions of the shareholders’ meeting in strict accordance with the Articles of Association and the Rules of Procedures of the Shareholders Meeting ensure that all shareholders especially small and medium shareholders enjoy equal rights as stipulated by laws administrative regulations and the Articles of Association and ensure that all shareholders legally exercise their rights and interests. The commitment party will also urge the listed company to further improve the institutional requirements of the board of directors ensure that the board of directors fairly scientifically and efficiently makes decisions ensure that independent directors can perform their duties in accordance with laws and regulations during their employment actively understand the various operations of the listed company consciously perform responsibilities play a positive role in the scientific decision-making of the board of directors and the development of the listed company promote the sound development of the listed company and effectively safeguard the overall interests of the listed company and the interests of small and medium-sized shareholders. In addition the Company will urge the listed company to give full play to the positive role of independent directors in regulating the operation of the company strictly abide by relevant national lawsregulations rules and relevant provisions of the Articles of Association to select independent directors and further enhance corporate governance.Commitment Letter on the Legal Compliance of the Underlying Asset Operation: Shenzhen Shenbao Industrial Co. Ltd. (hereinafter referred to as “Shenshenbao” “ListedCompany”) intends to purchase 100% equity of Shenzhen Cereals Group Co. Ltd. (hereinafter referred to as “SZCG” “Target Company”) held by Shenzhen Food Materials Group Co. Ltd (hereinafterreferred to as “theCompany”) through issuance of shares. The Company has made the following commitments: 1. The Target Company is a limited liability company established according to law and is validly existing possesses statutory business qualifications and the Target Company has obtained all the approvals consents Shenzhen authorizations and licenses Agricultural Other required for its establishment Power commitments and operation and all 2018-06-08 Implement Normal Group approvals consents and as promised performance authorizations and licenses are valid and there is no reason or case that may result in the invalidation of the above approvals consents authorizations and licenses. 2. The Target Company has no major violations of laws and regulations in the production and operation in the last three years there is no case that the Target Company should be terminated according to relevant laws regulations normative documents and the company’s articles of association. Except for litigations arbitrations and administrative penalties disclosed in the Restructuring Report the Target Company does not have any unsettled or foreseeable major litigation arbitration and administrative penalty that adversely affect itsoperations or the amount is more than 10 million yuan. 3. The Target Company will perform the labor contracts with its employees independently and completely. 4. If the Target Company is subject to the fees or penalties of the relevant competent authorities in terms of industry and commerce taxation employee salaries social security housing provident fund business qualifications or industry supervisors due to the facts already existing before the reorganization the Company will fully compensate all the outstanding fees of the Target Company and bear all the losses suffered by Shenshenbao and the Target Company. 5. The Target Company legally owns the ownership and/or use rights of the offices office equipment trademarks and other assets required for normal production and operation has independent and complete assets and business structure and has legal ownership of its main assets and the ownership of assets is clear. 6. There is no case that the Target Company impedes the transfer of ownership of the company such as litigation arbitration judicial enforcement etc. and there is no external guarantee that violates the law or the articles of association. After this reorganization if the Company violates the above commitments and causes losses to Shenshenbao and the Target Company the Company agrees to bear the aforementioned compensation/ liability for damage to Shenshenbao/ Target Company.Commitment on the Independence of Listed Company: In view of the fact Shenzhen that Shenzhen Shenbao Agricultural Other Industrial Co. Ltd.Power commitments (hereinafter referred to as 2018-06-08 Implement Normal “Shenshenbao”) intends to as promised performanceGroup acquire 100% equity of Shenzhen Cereals Group Co. Ltd. (hereinafter referred to as “TargetCompany”) held by Shenzhen Food Materials Group Co. Ltd (hereinafterreferred to as “theCompany”) by issuing shares to purchase assets the Company has made the following commitments: 1.Guarantee the independence of the personnel of Shenshenbao and the Target Company (1) Guarantee that the labor personnel and compensation management of Shenshenbao and Target Company are completely independent of the Company and other companies and enterprises controlled by the Company or other economic organizations and related parties after the completion of this restructuring. (2) Guarantee that the senior management personnel of Shenshenbao and Target Company are fully employed in Shenshenbao and Target Company and receive remuneration after the completion of this restructuring and do not hold any post except for directors and supervisors in the Company and other companies enterprises controlled by the Company or other economic organizations and related parties. (3) Ensure not to intervene into the shareholders’ meeting and the board of directors of Shenshenbao and Target Company to exercise their powers to determine the appointment and dismissal of personnel after the completion of this restructuring. 2. Guarantee the institutional independence of Shenshenbao and Target Company (1) After the completion of this restructuring Shenshenbao and Target Company will establish a sound corporate governance structure and have an independent and complete organization. (2) After the completion of this restructuring the shareholders meeting the board of directors and the board of supervisors of Shenshenbao and TargetCompany shall independently exercise their functions and powers in accordance with the laws regulations and the articles of association of Shenshenbao and Target Company. 3. Ensure that the assets of Shenshenbao and Target Company are independent and complete. (1) After the completion of this restructuring Shenshenbao and Target Company shall have independent and complete assets related to production and operation. (2) Ensure that the site for business operation of Shenshenbao and Target Company are independent of the Company and other companies and enterprises controlled by the Company or other economic organizations and related parties after the completion of this restructuring. (3) In addition to normal business transactions after the completion of this restructuring Shenshenbao and Target Company do not have funds and assets which are occupied by the Company and other companies and enterprises controlled by the Company or other economic organizations and related parties. 4. Guarantee the business independence of Shenshenbao and Target Company (1) After the completion of this restructuring Shenshenbao and Target Company shall have the relevant qualifications for independent business activities and have the market-oriented independent autonomous and sustainable operation capabilities. (2) After the completion of this restructuring the Company and other companies and enterprises controlled by the Company or other economic organizations and related parties shall reduce the related transactions with Shenshenbao and Target Company and other companies and enterprises controlled by them or other economic organizations; forthe necessary and unavoidable related transactions guarantee the fair operation according to market principles and fair prices and perform relevant approval procedures and information disclosure obligations in accordance with relevant laws regulations and regulatory documents. 5. Guarantee the financial independence of Shenshenbao and Target Company (1) Ensure that Shenshenbao and Target Company will establish an independent financial department and an independent financial accounting system and a standardized and independent financial accounting system after the completion of this restructuring. (2) Ensure that Shenshenbao and Target Company will open an independent bank account after the completion of this restructuring and will not share bank accounts with the Company and other companies and enterprises controlled by the Company or other economic organizations and other related parties. (3) After the completion of this restructuring the financial personnel of Shenshenbao and Target Company shall not take part-time jobs in the Company and other companies and enterprises controlled by the Company or other economic organizations and related parties. (4) After the completion of this restructuring Shenshenbao and Target Company shall be able to make financial decisions independently the Company shall not interfere with the use of funds of Shenshenbao and Target Company. (5) After the completion of this restructuring Shenshenbao and Target Company shall pay taxes independently according to law. If the Company violates the above commitments it will bear all the losses caused to Shenshenbao and TargetCompany.Commitment to Avoid Occupation of Non-operating Capital: Shenzhen Shenbao Industrial Co. Ltd. intends to acquire 100% equity of Shenzhen Cereals Group Co. Ltd. (hereinafter referred to as “SZCG”) held by Shenzhen Food Materials Group Co. Ltd (hereinafterreferred to as “theCompany”) through issuance of shares. In response to the above transactions Food Materials Group and Agricultural Products have made the following commitments: 1. As of the issue date of this commitment letter the commitment party and its related person do not have any illegal use of funds and assets of the listed company Commitments and SZCG and there is no Shenzhen on inter- case that the listed company Agricultural industry and SZCG provide illegal Power competition guarantee for the Implement Normal Group related commitment party and its 2018-06-08 as promised performance Agricultural transactions related person. 2. After the Products and capital completion of the occupancy transaction the commitment party guarantees that the commitment party and its related person shall not illegally occupy the funds and assets of the listed company in any way nor require the listed company to provide illegal guarantee for the commitment party and its related person under any circumstances nor engage in any act to damage the legitimate rights and interests of the listed company and other shareholders. If the commitment party violates the above commitments it will bear all losses caused to the listed company and the target company and other companies and enterprises controlled by them or other economic organizations.Completed on time (Y/N) Y 2. For assets or projects of the Company which keep profitable forecast during the reporting period description reasons for reaching the original profitable forecast □ Applicable□Not applicableII. Non-operational fund occupation by controlling shareholders and their related parties □ Applicable□ Not applicable No non-operational fund occupation by controlling shareholders and their related parties in period.III. External guarantee out of regulations □ Applicable □ Not applicable No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by BOD □ Applicable□Not applicable V. Explanation from the BOD the board of supervisors and independent directors (if applicable) for “Qualified Audit Opinion” issued by CPA □ Applicable□Not applicable VI. Explanation on changes in accounting policies accounting estimates or correction of significant accounting errors compared with the financial report of the previous year □Applicable □ Not applicable There were no changes in accounting policies accounting estimates or correction of significant accounting errors compared with the financial report of the previous year.VII. Explanation of changes in the scope of the consolidated financial statements compared to the previous year’s financial reports □Applicable □ Not applicable In this period the company transferred Wuhan Jiacheng Biological Products Co. Ltd. and Zhenpin Market Operation Technology Co. Ltd. and deregistered Hangzhou Ju Fang Yong Holdings Co. Ltd. Yunnan Pu’er Tea Trading Center Co. Ltd. and Shenzhen Shenbao Industry and Trade Co. Ltd.VIII. Appointment and dismissal of CPA Accounting firm appointed Name of domestic accounting firm Grant Thornton Certified Public Accountant LLP (SpecialGeneral Partnership) Remuneration for domestic accounting firm (in 10 thousand Yuan) 70 Continuous life of auditing service for domestic accounting firm 2 Name of domestic CPA Gao Hong Shu Zhicheng Continuous life of auditing service for domestic CPA 21 Whether re-appointed accounting firms in this period or not □ Yes □ NoAppointment of internal control auditing accounting firm financial consultant or sponsor □Applicable □ Not applicable During the reporting period the company hired Grant Thornton Certified Public Accountant LLP (Special General Partnership) to perform internal audit and paid a total of RMB 200000.00 in internal control audit fees.IX. Particular about delisting after annual report disclosed □ Applicable□Not applicable X. Bankruptcy reorganization □ Applicable□Not applicable No bankruptcy reorganization for the Company in reporting period XI. Significant lawsuits and arbitration of the Company □Applicable □ Not applicable Amount Lawsuits involved Resulting in an Execution (arbitration) (in 10 accrual liability Progress Result and of Disclosure Disclosure thousand (Y/N) influence judgment date index yuan) The Company As of 31 actively makes December use of the 2024 other advantageous lawsuits that resources of did not meet internal legal the disclosure affairs and After standards for external laws comprehensive significant firm to follow up analysis the lawsuits and deal with the result of the It is mainly 7628.8 N lawsuit-related cases involved included cases. At in the lawsuits actively -- will not have a advancingdisputes over present the sales contracts Company is significant loan contracts responding to impact on the construction and dealing with Company contracts legal the cases service effectively in contracts lease accordance with contracts etc. relevant laws and regulations XII. Penalty and rectification □ Applicable□Not applicable No penalty and rectification for the Company in reporting period.XIII. Integrity of the Company its controlling shareholder and actual controller □ Applicable□Not applicableXIV. Major related transaction 1. Related transaction with routine operation concerned □ Applicable□ Not applicable The company had no related transaction with routine operation concerned at the end of the reporting period. 2. Assets or equity acquisition and sales of assets and equity ? Applicable□ Not applicable Pricing Book Assesse Settlem Type of Content principl value d value Trans entof Trading Related Related related related es for of of fer method transfer transfer price of gains/lo Disclos Disclos parties relations party party related red red (1000 related sses ure urehips transacti on transact party (10000 date index ion transacti assets assets 0 party ons (10000 (10000 yuan) transact yuan) yuan) yuan) ion Shenlian g Intellige nt Wulian Equity Investm Joint Acquisit Minorit ent Fund venture ion of yequity Market 2876.5 2885.6 2885. Bank(Shenzh of the minority price 2 0 60 transfer 0 en) company equity acquisit Partners ion hip Enterpri se (Limited ) The subsidiar y of the actual Shenzhe controlle Transact n r of the ion Zhenpin company related Equity Market 397.7 Bank Group also with transfer price 247.05 451.71 3 transfer 150.68 Co. Ltd controlle equity d by the transfer ultimate controlle r Shenzhe Transact n Holding ion Agricult company related Equitywith acquisit 434.42 389.97 415.2 Bankural of the 5 transfer 0 Power company equity ion Group acquisition Reasons for significant differences between transfer price and book value or assessed Appreciation of assessment value (if any) The impact on the company's operating No significant impactresults and financial condition If the relevant transactions involve performance agreements the achievement NA of performance during the reporting period 3. Related transaction of joint foreign investment □ Applicable□Not applicable No related transaction of joint foreign investment occurred in the period 4. Related credits and liabilities □ Applicable□ Not applicable No related credits and liabilities occurred in period 5. Contact with the related finance companies □ Applicable□Not applicable There are no deposits loans credits or other financial businesses between the finance companies with associated relationship and related parties 6. Transactions between the finance company controlled by the Company and related parties □ Applicable □ Not applicable There are no deposits loans credits or other financial business between the finance companies controlled by the Company and related parties 7. Other major related transaction □ Applicable□Not applicable No other major related transaction in the Period.XV. Significant contract and implementation 1. Trusteeship contract and leasing (1) Trusteeship □ Applicable□Not applicable No trusteeship for the Company in reporting period (2) Contract □ Applicable□Not applicable No contract for the Company in reporting period(3) Leasing □ Applicable□Not applicable No leasing in the Period 2. Major Guarantee □Applicable ? Not applicable 3. Entrusted cash asset management (1) Entrusted financing □ Applicable □Not applicable Entrusted financing in the period Unit: 10 thousand yuan Impairment provision accrual Type Fund sources Amount occurred Undue balance Overdue amount for overdue financial management Bank financial products Owned fund 34500 0 0 0 Total 34500 0 0 0 Details of high-risk trust financing with significant individual amounts low safety or liquidity □ Applicable□Not applicable Expected inability to recover the principal of trust financing or other situations that may lead to impairment in trusting financing □ Applicable□Not applicable (2) Entrusted loans □ Applicable□Not applicable No entrusted loans in the Period 4. Other material contracts □ Applicable□ Not applicable No other material contracts in the period.XVI. Explanation on other significant events □Applicable □ Not applicable 1. Personnel changes in BOD BOS and senior executives (1) On November 27 2024 the board of directors of the company received a written resignation application submitted by Mr. Hu Xianghai Deputy Secretary of the Party Committee Director and GM of the company. Due to reaching the legal retirement age Mr.Hu Xianghai applied to resign from the positions of director and GM of the company and will no longer hold any other positions in the company after resignation. For details please refer to the Announcement of the Company on the Retirement and Departure of Directors and GM published on Juchao website (www.cninfo.com.cn) on November 28 2024.XVII. Significant event of subsidiaries of the Company ?Applicable □Not applicable 1. On August 23 2024 the Company convened the 9th meeting of the 11th session of the Board of Directors deliberated and approved the Proposal on the Acquisition of 49% Minority Shareholders’ Equity of Shuangyashan Shenliang Cereals Base Co.Ltd.by Shenzhen Hualian Grain and Oil Trading Co. Ltd. The Company agreed that its wholly-owned subsidiary Shenzhen Hualian Grain and Oil Trading Co. Ltd. to acquire 49% equity of Shuangyashan Shenliang Cereals Base Co. Ltd. held by Shenliang Intelligent Wulian Equity Investment Fund (Shenzhen) Partnership Enterprise (Limited) at the consideration of 28856000.00 yuan.For details please refer to the Announcement on the Resolution of the 9th Meeting of the 11th session of the Board of Directors of the Company published on Juchao Website (www.cninfo.com.cn) on August 27 2024. 2. On December 30 2024 the Company convened the 12th Meeting of the 11th session of the Board of Directors deliberated and approved the Proposal on the Capital Increase Project of Shenzhen Shenliang Big Kitchen Food Supply Chain Co. Ltd. by SZCG and the Proposal on the Capital Increase Project of Shenzhen Hualian Grain and Oil Trading Co. Ltd. by SZCG The Company agreed that its first-level wholly-owned subsidiary SZCG would use its own funds to respectively increase the capital of the second-level wholly-owned subsidiary Shenzhen Shenliang Big Kitchen Food Supply Chain Co. Ltd(hereinafter referred to as “BigKitchen”）by 10000000.00 yuan and the second-level wholly-owned subsidiary Shenzhen Hualian Grain and Oil Trading Co.Ltd. (hereinafter referred to as “Hualian Company”) by 200000000.00 yuan. After the completion of this capital increase the registered capital of Big Kitchen will be increased from 10000000.00 yuan to 20000000.00 yuan and the registered capital of Hualian Company will be increased from 100000000.00 yuan to 300000000.00 yuan. For details please refer to the Announcement on the Resolution of the 12th Meeting of the 11th session of the Board of Directors of the Company and the Announcement on Capital Increase of Wholly-Owned Subsidiaries by the Company published on the Juchao website (www.cninfo.com.cn) on December 31 2024.Section VII. Changes in Shares and Particulars about Shareholders I. Changes in shares 1. Changes in shares Unit: Share Before the Change Increase/Decrease in the Change (+/ -) After the Change New Capitalization Amount Proportion shares Bonusshares of public Others Subtotal Amount Proportionissued reserve I. Restricted shares 684569567 59.40% 0 0 0 0 0 684569567 59.40% 1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00% 2. State-owned corporate 684569567 59.40% 0 0 0 0 0 684569567 59.40% shares 3. Other domestic 0 0.00% 0 0 0 0 0 0 0.00% shares Including: Domestic legal person’s 0 0.00% 0 0 0 0 0 0 0.00% shares Domestic nature person’s 0 0.00% 0 0 0 0 0 0 0.00% shares 4. Foreign shares 0 0.00% 0 0 0 0 0 0 0.00% Including: Foreign corporate 0 0.00% 0 0 0 0 0 0 0.00% shares Overseas nature 0 0.00% 0 0 0 0 0 0 0.00% person’s share II.Unrestricted 467965687 40.60% 0 0 0 0 0 467965687 40.60% shares 1. RMB common 416216407 36.11% 0 0 0 0 0 416216407 36.11% shares 2. Domestic listed foreign 51749280 4.49% 0 0 0 0 0 51749280 4.49% shares 3. Foreign listed foreign 0 0.00% 0 0 0 0 0 0 0.00% shares 4. Other 0 0.00% 0 0 0 0 0 0 0.00% III. Total shares 1152535254 100.00% 0 0 0 0 0 1152535254 100.00% Reasons for changes in share□ Applicable□ Not applicable Approval of changes in share □ Applicable□ Not applicable Ownership transfer of changes in share □ Applicable□ Not applicable Influence of changes in share on basic EPS diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of the Company in latest year and period □ Applicable□ Not applicable Other information necessary to be disclosed in the viewpoint of the Company or that required to be disclosed by securities regulators □ Applicable□ Not applicable 2. Changes in restricted shares □ Applicable□Not applicable II. Securities issuance and listing 1. Security offering (without preferred stock) in the reporting period □ Applicable□Not applicable 2. Explanation on changes in total shares shareholders structure as well as assets and liability structure of the company □ Applicable□Not applicable 3. Existing internal staff shares □ Applicable□Not applicable III. Particulars about shareholders and actual controller of the Company 1. Number of shareholders and particulars about shares holding Unit: Share Total common Total Total preferred Total stock common shareholders with preferred shareholders at stock voting rights shareholders the end of shareholders recovered at the end with voting reporting at the end of of reporting period rights period last month (if applicable) (refer recovered at 42977 before 41498 to Note 8) 0 end of lastannual month 0 report before disclosed annual report disclosed (if applicable) (refer toNote 8) Shareholding of shareholders holding more than 5% shares of the company or top ten shareholders (Excluding shares lent through refinancing) Total shares Information of shares Name of Nature of Proportion held at the Changes in Quantity of Quantity of pledged tagged or Shareholders shareholder of shares end of reporting restricted unrestricted frozenheld reporting period shares held shares held State of period share Quantity Shenzhen State- Agricultural owned Power Group legal 63.79% 735237253 0 669184735 66052518 NA 0 Co. Ltd. person Shenzhen State- Agricultural owned Products legal 8.23% 94832294 0 15384832 79447462 NA 0 Group Co. Ltd person Dongguan Domestic Fruit non-state- Vegetable and owned Non- staple legal 0.75% 8698216 0 0 0 NA 0 Food Trading person Market Co.Ltd Hong Kong Foreign Securities legal Clearing person 0.48% 5492845 39652 0 0 NA 0 Company Chen Jiuyang Domestic nature 0.29% 3297070 386000 0 0 NA person Zhong Zhenxin Domestic nature 0.29% 3295500 0 0 0 NA person Sun Huiming Domestic nature 0.28% 3236352 -370300 0 0 NA 0 person CMB - Southern CSI 1000 Trading Open-End Index Other 0.24% 2726700 2257200 0 0 NA 0 Securities Investment Fund Bank of China Fund - Postal Savings Bank of China - Bank of China Fund - Zhongchengxin Dividend Other 0.14% 1579400 1579400 0 0 NA 0 Defense Stock Index Collective Asset Management Plan CMB - Wanjia NA CSI 1000 Index Enhanced Initiated Other 0.13% 1536800 1536800 0 0 Securities Investment FundStrategy investors or general legal person becoming top 10 common shareholders due to Nil rights issue (if applicable) (see note 3) Explanation on associated Shenzhen SASAC directly holds 100% equity of Shenzhen Agricultural Power Group Co. Ltd. and relationship among the holds 34% equity of Shenzhen Agricultural Products Group Co. Ltd. indirectly through Shenzhen aforesaid shareholders Agricultural Power Group Co. Ltd.; The Company was not aware of any related relationship between other shareholders above and whether they are parties acting in concert as defined by the Acquisition Management Method of Listed Company.Description of the above shareholders involved with delegating/entrusted voting Nil rights and abstention from voting rights.Special note on the repurchase account among the top 10 shareholders (if Nil applicable) (see note 10) Particular about top ten shareholders holding unrestricted shares (Excluding shares lent through refinancing locked-up shares for senior executives) Type of shares Shareholders’ name Quantity of unrestricted sharesheld at Period-end Type Quantity Shenzhen Agricultural Products Group Co. 79447462 RMB common shares 79447462 Ltd Shenzhen Agricultural Power Group Co. 66052518 RMB common shares 66052518 Ltd.Dongguan Fruit Vegetable and Non- staple 8698216 RMB common shares 8698216 Food Trading Market Co. Ltd Hong Kong Securities Clearing Company 5492845 RMB common shares 5492845 Chen Jiuyang 3297070 RMB common shares 3297070 Zhong Zhenxin 3295500 RMB common shares 3295500 Sun Huiming 3236352 Domestically listed 3236352 foreign shares CMB - Southern CSI 1000 Trading Open- 2726700 RMB common shares 2726700 End Index Securities Investment Fund Bank of China Fund - Postal Savings Bank of 1579400 RMB common shares 1579400 China - Bank of China Fund - Zhongchengxin Dividend Defense Stock Index Collective Asset Management Plan CMB - Wanjia CSI 1000 Index Enhanced 1536800 RMB common shares 1536800 Initiated Securities Investment Fund Explanation of the association or concerted action between the top 10 shareholders of Shenzhen SASAC directly holds 100% equity of Shenzhen Agricultural Power Group Co. Ltd. and non-restricted and tradable holds 34% equity of Shenzhen Agricultural Products Group Co. Ltd. indirectly through Shenzhen shares as well as between the Agricultural Power Group Co. Ltd.; The Company was not aware of any related relationship top 10 shareholders of non- between other shareholders above and whether they are parties acting in concert as defined by the restricted and tradable shares Acquisition Management Method of Listed Company.and the top 10 shareholders Explanation on the participation of the top 10 ordinary shareholders in margin trading and securities Nil lending business (if any) (see Note 4) Shareholders with over 5% of shares top ten shareholders and top ten shareholders of un-restrict shares participate in the lending of shares through refinancing □ Applicable□Not applicable The top 10 shareholders and the top 10 shareholders of un-restricted tradable shares have changed compared to the previous period due to the reasons of lending/returning of shares through refinancing□Applicable □Not applicable Whether top ten common stock shareholders or top ten common stock shareholders of un-restrict shares have a buy-back agreement dealing in reporting period or not □ Yes □ No The top ten common stock shareholders or top ten common stock shareholders of un-restrict shares didn’t have buy-back agreement dealing in reporting period. 2. Controlling shareholder of the Company Nature of controlling shareholders: local state-owned holding Type of controlling shareholders: legal person Legal Controlling person/person Date of shareholder in charge of the establishment Organization code Main operation business unit The general business projects are: food safety infrastructure construction (including the upgrading of the farmers ’market the upgrading of public places canteens the construction of community cooked food centers and the construction of agricultural product bases); safe food circulation and terminal sales; the establishment of food distribution channel platforms; Food industry investment and operation (Including the M & A investment of the core resources of the food industry chain and the cultivation Shenzhen of enterprises in the future direction); Agricultural Power Huang Wei Dec. 14 2017 91440300MA5EWWPXX2 Domestic trade (excluding franchised Group Co. Ltd. monopolized and exclusively controlledcommodities); engaging in import and export business (except for items prohibited by laws administrative regulations and the State Council restricted items can only be operated after obtaining permission); online business activities (excluding restricted items).Licensed business items are food sales and supply business; emergency material production and operation; production purchase and sale of I II and III medical devices; pharmaceutical wholesale; ordinary freight professional transportation warehousing and logistics.Equity of other domestic and foreign listed companies controlled and In addition to holding 63.79% equity of the company Shenzhen Agricultural Power Group Co. Ltd. holds participated in by 34% equity of Agricultural Products.controlling shareholders during the reporting period Changes of controlling shareholder in reporting period □ Applicable□Not applicable The controlling shareholder of the company has not changed during the reporting period.3. Actual controller and persons acting in concert Nature of actual controller: local state-owned assets management Type of actual controller: legal person Legal Actual controller person/person Date of Main operationin charge of the establishment Organization code business unit Shenzhen Municipal People’s Government State-owned State-owned assets Assets Supervision & Wang Yongjian 2004-04-02 11440300K317280672 supervision and Administration Commission management Equity of other domestic/foreign listed companies controlled by the - actual controller in reporting period Changes of actual controller in reporting period □ Applicable□Not applicable No changes of actual controllers of the Company in reporting period.Property right and controlling relationship between the actual controller and the Company is as follow Shenzhen Municipal People’s Government State-owned Assets Supervision & Administration Commission Shenzhen Agricultural Power Group Co. Ltd.Shenzhen Agricultural Products Group Co.Ltd.Shenzhen Cereals Holdings Co. Ltd The actual controller controlling the Company by entrust or other assets management □ Applicable□Not applicable 4. The total number of shares pledged by the controlling shareholder or the first majority shareholder and its persons acting in concert accounts for 80% of the shares held by them □ Applicable□Not applicable 5. Particulars about other legal person shareholders with over 10% shares held □ Applicable□Not applicable6. Restriction on shareholding reduction of the controlling shareholder actual controller reorganizers and other promising entities □ Applicable□Not applicable IV. The specific implementation of shares buy-back during the reporting period Implementation progress of shares buy-back □ Applicable □ Not applicable Progress in implementing centralized bidding trading to reduce holdings of repurchase shares □ Applicable □ Not applicableSection VIII. Preferred Stocks □ Applicable□ Not applicable The Company had no preferred stock in the Period.Section IX. Corporate Bonds □ Applicable□Not applicable深圳市深粮控股股份有限公司 2024 年年度报告全文 Section X. Financial Report I. Audit Report Type of audit opinion Standard unqualified opinion Signing date of audit report 2025-04-28 Name of audit institute Grant Thornton Certified Public Accountant LLP (SpecialGeneral Partnership) Document serial of audit report ZHTSH[2025]No.441A020235 Name of the CPA Gao Hong Shu Zhicheng Text of Auditor’s Report ZHTSH[2025]No.441A020235 To all shareholders of SHENZHEN CEREALS HOLDINGS CO. LTD.: 1. Auditing opinions We have audited the financial statement under the name of SHENZHEN CEREALS HOLDINGS CO. LTD. (hereinafter referred to as “SZCH”) including the consolidated and parent Company’s balance sheet of December 31 2024 and profit statement and cash flow statement and statement on changes of shareholders’ equity for the year ended and notes to the financial statements for the year ended.In our opinion the Company’s financial statements have been prepared in accordance with the Accounting Standards for Business Enterprises and they fairly present the financial status of the Company and of its parent company as of December 31 2024 and its operation results and cash flows for the year ended. 2. Basis of opinion We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of the auditor’s report. We are independent of the Company in accordance with the Certified Public Accountants of China’s Code of Ethics for Professional Accountants and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 3. Key audit matters Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on this matter.The key audit matters identified in our audit are summarized as follows: (i) Revenue recognition For more details of the relevant information please refer to Note V.27 and Note VII.40 of financial statements. 1. Matter description The main business of SZCH include grain and oil trade and processing income grain and oil warehousing logistics and service income food and beverage and tea processing income leasing and other income. SZCH operating revenue for 2024 is 86深圳市深粮控股股份有限公司2024年年度报告全文 5375089846.91 yuan and it is one of the key indexes of performance of SZCH which has inherent risks in manipulation for achieving the predicted target therefore the identification of operating income will be listed as the key auditing event. 2. Audit response The audit procedures we have implemented for this key audit matter mainly include: (1) Understand evaluate and test the design and operational effectiveness of internal control related to revenue; (2) Understand the business models and acceptance terms of different businesses inspect the main sales contracts identify the terms related to the transfer of commodity control rights and evaluate whether the revenue recognition policy complies with the provisions of the Enterprise Accounting Standards; (3) Perform analytical review procedures on operating revenue analyze changes in operating revenue costs and gross profit margin on a monthly and product basis identify significant or abnormal fluctuations understand the reasons for abnormal situations and evaluate their reasonableness; (4) Search for basic information of major clients or newly added major clients through public channels conduct on-site visits to major clients enquire about transaction content cooperation mode transaction amount acceptance terms and related relationships and verify the authenticity and commercial substance of their transactions Focus on checking whether there are financing trades without real transactions; (5) Sample inspect supporting documents related to revenue confirmation including sales contracts sales invoices outbound orders transfer of ownership documents proof of delivery accounting vouchers etc; (6) Sample to confirm the current sales revenue and the initial and final balances of accounts receivable and payable to major customers new customers etc.; (7) Conduct a cut-off test on the operating income close to the balance sheet date evaluate whether the operating income is recorded in the appropriate accounting period.(ii) Inventories and loss allowance of inventories For more details of inventories and Loss allowance of inventories please refer to Note V.13 and Note VII. 7 of consolidated financial statements. 1. Matter description As of December 31 2024 the book value of inventory presented on the consolidated financial statements of SZCH was 4154400919.61 yuan and the loss allowance of inventories was 109402277.09 yuan the carrying amount of inventories was 4044998642.52 yuan accounting for 52.43% of the total assets. Due to the significant amount of inventories SZCH management (Hereinafter referred to as “management”) needed to make significant judgments when determining the decrease in value of inventories including the consideration of government reserve such as as grain & oil food and vegetable oil which are affected by futures market These important judgments have a significant impact on the valuation of inventories and loss allowance of inventories at period-end; therefore we determined the inventories and loss allowance of inventories as key audit matters. 2. Audit response The audit procedures we have implemented for this key audit matter mainly include: (1) Understand evaluate and test the design and operational effectiveness of internal control related to inventory; (2) Understand the business models of reserve grain and commodity grain verify the matching between inventory structure and operating income and analyze the rationality of inventory amounts; 87深圳市深粮控股股份有限公司2024年年度报告全文 (3) Review the management’s model and method for estimating the net realizable value of inventory as well as the relevant parameters used. For products that can obtain publicly available market sales prices select a sample independently query publicly available market price information and compare it with the estimated selling price. (4) Implement monitoring procedure for inventory check its quantity and condition and implement alternative procedures for fumigation warehouses; (5) Obtain the calculation table for loss allowance of inventories and inventory age list execute inventory impairment testing procedures and analyze whether the provision for inventory depreciation reserves is sufficient conduct an analytical review of inventory with a longer inventory age based on the condition of the product and analyze whether the provision for inventory depreciation is reasonable. 4. Other information The management of SZCH (hereinafter referred to as “the management”) is responsible for other information which includes the information covered in the Company’s 2024 annual report excluding the financial statement and our audit report.The audit opinion issued by us for the financial statement has not covered other information for which we do not issue any form of assurance opinions.Considering our audit on financial statements we are liable to read other information during which we shall consider whether other information differs materially from the financial statements or that we understand during our audit or whether there is any material misstatement.Based on the works executed by us we should report the fact if we find any material misstatement in other information. In this regards we have nothing to report. 5. Responsibilities of the management and those charged with governance for the financial statements The management of SZCH is responsible for the preparation of the financial statements in accordance with the Accounting Standards for Enterprise to secure a fair presentation and for the design establishment and maintenance of the internal control necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to continue as a going concern (if applicable) disclosing matters related to going concern and using the going concern assumption unless the management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process. 6. Responsibilities of the auditor for the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an audit report that includes our audit opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS we exercise professional judgment and maintain professional skepticism throughout the audit. We also: (1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a 88深圳市深粮控股股份有限公司2024年年度报告全文 basis for audit opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control. (2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances (3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. (4) Conclude on the appropriateness of the management’s use of the going concern assumption and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by the CAS to draw users’ attention in audit report to the related disclosures in the financial statements or if such disclosures are inadequate to modify audit opinion. Our conclusions are based on the information obtained up to the date of audit report. However future events or conditions may cause the Company to cease to continue as a going concern. (5) Evaluate the overall presentation including the disclosures structure and content of the financial statements and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. (6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express audit opinion on the financial statements. We are responsible for the direction supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and relevant countermeasures (if applicable).From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in the auditor’s report because of the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.Grant Thornton Certified Public Accountant LLP Chinese CPA Gao Hong (Special General Partnership) (Partner) Shu Zhicheng Chinese CPA Beijing China April 28 2025 89深圳市深粮控股股份有限公司2024年年度报告全文 II. Financial Statement Statement in Financial Notes are carried In RMB/CNY 1. Consolidated Balance Sheet Prepared by SHENZHEN CEREALS HOLDINGS CO. LTD.In RMB Item Ending balance Opening balance Current assets: Monetary funds 168199291.23 240740787.28 Settlement provisions Capital lent Tradable financial assets 1122347.85 Derivative financial assets Note receivable 2327160.00 113932.00 Account receivable 235789565.91 179828493.98 Receivable financing Accounts paid in advance 9776028.70 17234701.92 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other account receivable 19978436.61 29141966.16 Including: Interest receivable Dividend receivable Buying back the sale of financial assets Inventories 4044998642.52 3458443989.04 Including: Data resources Contract assets Assets held for sale 121126137.62 Non-current asset due within one year Other current assets 113243285.26 105857923.48 Total current assets 4594312410.23 4153610279.33 Non-current assets: Loans and payments on behalf Debt investment Other debt investment Long-term account receivable Long-term equity investment 45356888.44 74008926.48 Investment in other equity instrument 90深圳市深粮控股股份有限公司2024年年度报告全文 Other non-current financial assets 57500.00 57500.00 Investment real estate 302075246.75 263597031.89 Fixed assets 2009520283.95 2171997328.52 Construction in progress 39312847.70 51288301.16 Productive biological asset 348924.60 358617.00 Oil and gas asset Right-of-use assets 115258040.17 56933148.16 Intangible assets 523370792.77 546325555.22 Including: Data resources Expense on Research and Development Including: Data resources Goodwill Long-term expenses to be 26013188.6824694318.05 apportioned Deferred income tax asset 52903106.75 52757295.38 Other non-current asset 6021277.97 7297950.00 Total non-current asset 3120238097.78 3249315971.86 Total assets 7714550508.01 7402926251.19 Current liabilities: Short-term loans 1484605101.05 1223462519.16 Loan from central bank Capital borrowed Trading financial liability Derivative financial liability Note payable Account payable 392787099.23 336165196.80 Accounts received in advance 1689748.86 1084701.60 Contract liability 126590458.95 86566253.73 Selling financial asset of repurchase Absorbing deposit and interbank deposit Security trading of agency Security sales of agency Wage payable 181550514.63 266214663.20 Taxes payable 102239439.35 86906785.70 Other account payable 268321327.50 278046251.53 Including: Interest payable Dividend payable 2933690.04 2933690.04 Commission charge and commission payable Reinsurance payable Liability held for sale 0.00 66579828.59 Non-current liabilities due within 42927367.21 22805473.76 91深圳市深粮控股股份有限公司2024年年度报告全文 one year Other current liabilities 8042645.47 3896140.56 Total current liabilities 2608753702.25 2371727814.63 Non-current liabilities: Insurance contract reserve Long-term loans Bonds payable Including: Preferred stock Perpetual capital securities Lease liability 78084500.76 37744951.74 Long-term account payable 16636326.62 17994633.05 Long-term wages payable Accrual liability Deferred income 79203615.99 82819873.24 Deferred income tax liabilities 10495166.46 10937920.46 Other non-current liabilities Total non-current liabilities 184419609.83 149497378.49 Total liabilities 2793173312.08 2521225193.12 Owner’s equity: Share capital 1152535254.00 1152535254.00 Other equity instrument Including: Preferred stock Perpetual capital securities Capital public reserve 1271908217.34 1276151523.07 Less: Inventory shares Other comprehensive income -620406.95 -833174.82 Reasonable reserve 1152617.76 741968.19 Surplus public reserve 616729697.68 483103366.38 Provision of general risk Retained profit 1877968762.99 1916792566.57 Total owner’ s equity attributable to 4919674142.824828491503.39 parent company Minority interests 1703053.11 53209554.68 Total owner’ s equity 4921377195.93 4881701058.07 Total liabilities and owner’ s equity 7714550508.01 7402926251.19 Legal representative: Wang Zhikai Person in charge of accounting works: Lu Yuhe Person in charge of accounting institute: Lu Chengjun 2. Balance Sheet of Parent Company 92深圳市深粮控股股份有限公司2024年年度报告全文 In RMB Item Ending balance Opening balance Current assets: Monetary funds 103158696.39 149617836.08 Tradable financial assets 0.00 1122347.85 Derivative financial assets Note receivable Account receivable 116938612.94 65714555.94 Receivable financing Accounts paid in advance 134194.35 336007.79 Other account receivable 2123872937.65 1624337855.63 Including: Interest receivable Dividend receivable Inventories Including: Data resources Contract assets Assets held for sale 0.00 21675000.00 Non-current assets maturing within one year Other current assets 110478.30 55135837.73 Total current assets 2344214919.63 1917939441.02 Non-current assets: Debt investment Other debt investment Long-term receivables Long-term equity investments 4031188641.37 4026844425.09 Investment in other equity instrument Other non-current financial assets Investment real estate 15100142.92 15571733.20 Fixed assets 30997299.26 32858541.01 Construction in progress Productive biological assets 348924.60 358617.00 Oil and natural gas assets Right-of-use assets 67225820.17 0.00 Intangible assets 21988398.89 23006791.89 Including: Data resources Research and development costs Including: Data resources Goodwill Long-term deferred expenses 3403734.80 2291236.03 Deferred income tax assets 10774610.43 10260054.61 Other non-current assets 2497360.73 3744657.76 Total non-current assets 4183524933.17 4114936056.59 93深圳市深粮控股股份有限公司2024年年度报告全文 Total assets 6527739852.80 6032875497.61 Current liabilities: Short-term borrowings 272901652.46 Trading financial liability Derivative financial liability Notes payable Account payable Accounts received in advance Contract liability Wage payable 49395879.48 31524389.29 Taxes payable 3570294.15 2801152.52 Other accounts payable 228671937.92 1200576358.07 Including: Interest payable Dividend payable 2933690.04 2933690.04 Liability held for sale Non-current liabilities due within 22332687.31 one year Other current liabilities Total current liabilities 576872451.32 1234901899.88 Non-current liabilities: Long-term loans Bonds payable Including: Preferred stock Perpetual capital securities Lease liability 46945825.26 Long-term account payable Long term employee compensation payable Accrued liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 46945825.26 0.00 Total liabilities 623818276.58 1234901899.88 Owners’ equity: Share capital 1152535254.00 1152535254.00 Other equity instrument Including: Preferred stock Perpetual capital securities Capital public reserve 3018298284.55 3018106568.27 Less: Inventory shares Other comprehensive income 94深圳市深粮控股股份有限公司2024年年度报告全文 Special reserve Surplus reserve 344325269.54 210698938.24 Retained profit 1388762768.13 416632837.22 Total owner’s equity 5903921576.22 4797973597.73 Total liabilities and owner’s equity 6527739852.80 6032875497.61 3. Consolidated Profit Statement In RMB Item 2024 2023 I. Total operating income 5375089846.91 6190005356.82 Including: Operating revenue 5375089846.91 6190005356.82 Interest income Insurance gained Commission charge and commission income II. Total operating cost 4874596515.28 5697359360.35 Including: Operating cost 4479001434.83 5228845801.34 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Tax and extras 19652659.06 18910438.82 Sales expense 149810329.96 176429835.98 Administrative expense 168245200.59 213065091.64 R&D expense 25208644.43 20045364.68 Financial expense 32678246.41 40062827.89 Including: Interest 33986936.3239968255.33 expenses Interest 1832540.57959189.54 income Add: Other income 12340535.46 22969158.29 Investment income (Loss is 3416742.979954884.45 listed with “-”) Including: Investment income -3992524.743332391.85 on affiliated company and joint venture The termination of 95深圳市深粮控股股份有限公司2024年年度报告全文 income recognition for financial assets measured by amortized cost Exchange income (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Income from change of fair 0.00182701.67 value (Loss is listed with “-”) Loss of credit impairment 166728.94-3172372.15 (Loss is listed with “-”) Losses of devaluation of asset -102359076.35-104336237.13 (Loss is listed with “-”) Income from assets disposal 5281839.252394378.42 (Loss is listed with “-”) III. Operating profit (Loss is listed with 419340101.90420638510.02 “-”) Add: Non-operating income 608747.13 2445728.23 Less: Non-operating expense 603979.68 1800973.49 IV. Total profit (Loss is listed with “-”) 419344869.35 421283264.76 Less: Income tax expense 95201262.19 74736397.57 V. Net profit (Net loss is listed with “-”) 324143607.16 346546867.19 (i) Classify by business continuity 1.continuous operating net profit 324143607.16346546867.19(net loss listed with ‘-”) 2.termination of net profit (net losslisted with ‘-”) (ii) Classify by ownership 1.Net profit attributable to owner’s 325309578.52347739109.06 of parent company 2.Minority shareholders’ gains and -1165971.36-1192241.87 losses VI. Net after-tax of other comprehensive 212767.8758327.88 income Net after-tax of other comprehensive income attributable to owners of parent 212767.87 58327.88 company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 96深圳市深粮控股股份有限公司2024年年度报告全文 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (ii) Other comprehensive income items which will be reclassified 212767.87 58327.88 subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.Amount of financial assets re-classify to other comprehensive income 4.Credit impairment provision for other debt investment 5.Cash flow hedging reserve 6.Translation differences arising on translation of foreign currency 212767.87 58327.88 financial statements 7.Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 324356375.03 346605195.07 Total comprehensive income attributable to owners of parent 325522346.39 347797436.94 Company Total comprehensive income -1165971.36-1192241.87 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.2823 0.3017 (ii) Diluted earnings per share 0.2823 0.3017 As for the enterprise combined under the same control the net profit achieved by the merged party before combination is 92048.86 yuan and the net profit achieved by the merged party in last period is negative 85624.62 yuan. Legal representative: Wang Zhikai Person in charge of accounting works: Lu Yuhe Person in charge of accounting institute: Lu Chengjun 4. Profit Statement of Parent Company 97深圳市深粮控股股份有限公司2024年年度报告全文 In RMB Item 2024 2023 I. Operating revenue 169956053.77 156547962.65 Less: Operating cost 2808669.32 471590.28 Taxes and surcharge 548323.11 461125.55 Sales expenses Administration expenses 87567563.48 69872687.40 R&D expenses Financial expenses -41291103.22 -31215787.32 Including: Interest 4609336.811340647.66 expenses Interest income 46144115.42 32809723.32 Add: Other income 185224.01 382620.07 Investment income (Loss is 1215262497.73307281666.79 listed with “-”) Including: Investment income on affiliated Company and joint venture The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Changing income of fair value 0.00-105784.51 (Loss is listed with “-”) Loss of credit impairment -5530.9011212.35 (Loss is listed with “-”) Losses of devaluation of asset (Loss is listed with “-”) Income on disposal of assets (Loss is listed with “-”)II. Operating profit (Loss is listed with “- 1335764791.92424528061.44 ”) Add: Non-operating income 0.00 5000.02 Less: Non-operating expense 16034.73 1099.02 III. Total Profit (Loss is listed with “-”) 1335748757.19 424531962.44 Less: Income tax -514555.82 -10260054.61 IV. Net profit (Net loss is listed with “-”) 1336263313.01 434792017.05 (i) continuous operating net profit 1336263313.01434792017.05(net loss listed with ‘-”) (ii) termination of net profit (netloss listed with ‘-”) V. Net after-tax of other comprehensive income 98深圳市深粮控股股份有限公司2024年年度报告全文 (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.Amount of financial assets re-classify to other comprehensive income 4.Credit impairment provision for other debt investment 5.Cash flow hedging reserve 6.Translation differences arising on translation of foreign currency financial statements 7.Other VI. Total comprehensive income 1336263313.01 434792017.05 VII. Earnings per share: (i) Basic earnings per share (ii) Diluted earnings per share 5. Consolidated Cash Flow Statement In RMB Item 2024 2023 I. Cash flows arising from operating activities: Cash received from selling 5740779445.446417740069.92 commodities and providing labor 99深圳市深粮控股股份有限公司2024年年度报告全文 services Net increase of customer deposit and interbank deposit Net increase of loan from central bank Net increase of capital borrowed from other financial institution Cash received from original insurance contract fee Net cash received from reinsurance business Net increase of insured savings and investment Cash received from interest commission charge and commission Net increase of capital borrowed Net increase of returned business capital Net cash received by agents in sale and purchase of securities Write-back of tax received 2979376.42 3183211.56 Other cash received concerning 265985560.00284194324.86 operating activities Subtotal of cash inflow arising from 6009744381.866705117606.34 operating activities Cash paid for purchasing 5403858690.855308048692.21 commodities and receiving labor service Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation Net increase of capital lent Cash paid for interest commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 340520836.42 375960027.05 Taxes paid 146884244.82 138212589.39 Other cash paid concerning 133798229.15297161582.08 operating activities Subtotal of cash outflow arising from 6025062001.246119382890.73 operating activities 100深圳市深粮控股股份有限公司2024年年度报告全文 Net cash flows arising from operating -15317619.38585734715.61 activities II. Cash flows arising from investing activities: Cash received from recovering 400281319.811558000000.00 investment Cash received from investment 6078274.346844163.83 income Net cash received from disposal of fixed intangible and other long-term 17413889.42 3450760.15 assets Net cash received from disposal of 18619360.206881320.00 subsidiaries and other units Other cash received concerning 0.00726511.34 investing activities Subtotal of cash inflow from investing 442392843.771575902755.32 activities Cash paid for purchasing fixed 95475079.77147621094.50 intangible and other long-term assets Cash paid for investment 345009000.00 1543000000.00 Net increase of mortgaged loans Net cash received from subsidiaries 3151787.390.00 and other units obtained Other cash paid concerning 7559395.680.00 investing activities Subtotal of cash outflow from investing 451195262.841690621094.50 activities Net cash flows arising from investing -8802419.07-114718339.18 activities III. Cash flows arising from financing activities: Cash received from absorbing 0.00490000.00 investment Including: Cash received from absorbing minority shareholders’ 0.00 490000.00 investment by subsidiaries Cash received from loans 3395816991.96 1930787809.13 Other cash received concerning financing activities Subtotal of cash inflow from financing 3395816991.961931277809.13 activities Cash paid for settling debts 3140732951.95 1872206173.08 Cash paid for dividend and profit 258068059.21324657445.10 distributing or interest paying 101深圳市深粮控股股份有限公司2024年年度报告全文 Including: Dividend and profit of minority shareholder paid by subsidiaries Other cash paid concerning 50811877.4034531394.28 financing activities Subtotal of cash outflow from financing 3449612888.562231395012.46 activities Net cash flows arising from financing -53795896.60-300117203.33 activities IV. Influence on cash and cash equivalents due to fluctuation in 105610.80 3592205.42 exchange rate V. Net increase of cash and cash -77810324.25174491378.52 equivalents Add: Balance of cash and cash 236745667.1062254288.58 equivalents at the period -begin VI. Balance of cash and cash equivalents 158935342.85236745667.10 at the period -end 6. Cash Flow Statement of Parent Company In RMB Item 2024 2023 I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor 733933422.20 729054189.00 services Write-back of tax received Other cash received concerning 4010769222.832005313299.07 operating activities Subtotal of cash inflow arising from 4744702645.032734367488.07 operating activities Cash paid for purchasing 421487.00 commodities and receiving labor service Cash paid to/for staff and workers 65491681.47 49590320.93 Taxes paid 1289038.98 31145617.56 Other cash paid concerning 4812539395.942100148518.90 operating activities Subtotal of cash outflow arising from 4879741603.392180884457.39 operating activities Net cash flows arising from operating -135038958.36553483030.68 activities II. Cash flows arising from investing activities: Cash received from recovering 325621806.51 658000000.00 102深圳市深粮控股股份有限公司2024年年度报告全文 investment Cash received from investment 14422758.193654709.03 income Net cash received from disposal of fixed intangible and other long-term assets Net cash received from disposal of 16360810.206881320.00 subsidiaries and other units Other cash received concerning 0.0016592433.35 investing activities Subtotal of cash inflow from investing 356405374.90685128462.38 activities Cash paid for purchasing fixed 7590134.5710063850.16 intangible and other long-term assets Cash paid for investment 295009000.00 643000000.00 Net cash received from subsidiaries 3151787.39 and other units obtained Other cash paid concerning 0.0047100000.00 investing activities Subtotal of cash outflow from investing 305750921.96700163850.16 activities Net cash flows arising from investing 50654452.94-15035387.78 activities III. Cash flows arising from financing activities: Cash received from absorbing investment Cash received from loans 1635652509.73 5000000.00 Other cash received concerning financing activities Subtotal of cash inflow from financing 1635652509.735000000.00 activities Cash paid for settling debts 1363121027.51 105000000.00 Cash paid for dividend and profit 234609740.44289793581.08 distributing or interest paying Other cash paid concerning financing activities Subtotal of cash outflow from financing 1597730767.95394793581.08 activities Net cash flows arising from financing 37921741.78-389793581.08 activities IV. Influence on cash and cash equivalents due to fluctuation in 3623.95 2464.09 exchange rate 103深圳市深粮控股股份有限公司2024年年度报告全文 V. Net increase of cash and cash -46459139.69148656525.91 equivalents Add: Balance of cash and cash 149617836.08961310.17 equivalents at the period -begin VI. Balance of cash and cash equivalents 103158696.39149617836.08 at the period -end 7. Consolidated Statement of Changes in Owners’ Equity Current period In RMB 2024 Owners’ equity attributable to the parent Company Other equity instrument Perp Less Prov Minori Pref etua : Inve Other Reaso ision ty Total Share erre l Ot Capital ntor compre nable Surplus of Retaine Ot owners’ capital capi reserve hensive reserv reserve gene d profit he Subtotal interes equity d tal he y ts stoc income e ral r k secu r shar risk ritie es s I.Balanc e at the 115253 127615 - 7419 48310 532090.00 83317 3366.3 0.00 191679 0. 482849 554.6 488170end of 5254.00 1523.07 4.82 68.19 8 2566.57 00 1503.39 8 1058.07the last year Add: Change s of accoun 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 000.00 ting policy Error correcti on of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00the last period Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 II.Bala nce at the beginni 115253 127615 -4831053209 0.008331774193366.30.001916790.482849554.6488170 ng of 5254.00 1523.07 4.82 68.19 8 2566.57 00 1503.39 8 1058.07 this year III.Increas e/ Decrea se in - this - 13362 -0.00 424330 0.00 21276 4106 6331.3 0.00 388238 0. 911826 51506 396761year 5.73 7.87 49.57 0 03.58 00 39.43 501.5 37.86(Decre 7 ase is listedwith “-”) (i) Total compre 0.00 0.00 21276 0.00 0.00 0.00 325309 0. 325522 - 7.87578.5200346.391165 324356 hensive 971.36 375.03 income (ii) - Owner - - - s’ 0.00 0.00 0.00 0. 004243300.000.000.000.000.000.00 0. 00424330 50340545838 devote 5.73 5.73 530.2 135.94 104深圳市深粮控股股份有限公司2024年年度报告全文 d and decreas ed capital 1.Com mon shares investe 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00d by shareh olders 2.Capit al investe d by holders of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 000.00 other equity instrum ents 3. Amoun t reckon ed into owners equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 000.00 with share- based payme nt 4.-- -- Other 424330 0.00 0.00 0.00 0.00 0.00 0.00 0.50340 5.7300 424330530.25458385.73135.94 (III) Profit 13362 - 0. - - distribu 0.00 0.00 0.00 0.00 6331.3 0.00 364133 00 230507 230507 tion 0 382.10 050.80 050.80 1. Withdr awal of 13362 - 0.surplus 0.00 0.00 0.00 0.00 6331.3 0.00 133626 00 0.00 0.00 reserve 0 331.30 s 2. Withdr awal of general 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00risk provisi ons 3. Distrib ution for - - - owners 0.00 0.00 0.00 0.00 0.00 0.00 230507 0. 00230507230507 (or 050.80 050.80 050.80 shareh olders) 4. Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 000.00 (IV) Carryin g forwar d 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 0.00 internal 00 owners ’ equity 1. Capital reserve s 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00conver sed to capital 105深圳市深粮控股股份有限公司2024年年度报告全文 (share capital) 2. Surplus reserve s conver 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.sed to 00 0.00 capital (share capital) 3. Remed ying loss 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00with surplus reserve 4.Carry -over retaine d earning s from 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 000.00 the defined benefit plans 5.Carry -over retaine d earning s from 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 000.00 other compre hensive income 6. Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 000.00 (V) Reason able 0.00 0.00 0.00 4106 49.570.000.000.00 0.410649.410649. 005757 reserve 1. Withdr awal in 1243 the 0.00 0.00 0.00 738.4 0.00 0.00 0.00 0.124373124373 008.418.41 report 1 period 2. Usage - - - in the 0.00 0.00 0.00 8330 0.00 0.00 0.00 0.report 88.84 00 833088.833088. 8484 period (VI)Ot 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.hers 00 0.00 IV.Balanc e at the 115253 127190 - 1152 61672end of 0.00 62040 617.7 9697.6 0.00 187796 0. 491967 1703 492137 the 5254.00 8217.34 6.95 6 8 8762.99 00 4142.82 053.11 7195.93 report period Last period In RMB 2023 Owners’ equity attributable to the parent Company Other Item Capit Less: Other Minor Total Share equity instrument Reaso Surpl Provis ity owner capita Prefer Perpet al Invent compr ehensi nable us ion of Retai Subto intere s’ l red ual Other reserv ory ve reserv reserv gener ned Other profit tal sts equity stock capita e shares incom e e al risk 106深圳市深粮控股股份有限公司2024年年度报告全文 l e securi ties I.Balan ce at the 1152 1259 - 4396 1910 4762 6951 4831 end of 5352 6396 8915 2203 54.0056.6502.7001.70 2416954008191722.5936 the 4.67 84.79 59.11 40 81.51 last year Add: Chan ges of 1485 1485 1485 accou 97.59 97.59 97.59 nting policy Error correc tion of the last period 1539 -1043 4958 4958Other 4408. 6209. 198.9 198.965 66 9 9 II.Balan ce at the 1152 1275 - 2203 4396 1900 4767 6951 4836 begin 5352 0340 8915 2416 0.00 6664 1887 1722. 7004 ning 54.00 65.30 02.70 01.704.6772.7255.694078.09 of this year III.Increa se/ Decre ase in this 1117 5832 5216 4347 1612 6130 - 1630 4500year 457.7 7.88 66.49 9201. 0.00 6093. 2747.(Decr 7 71 85 70 2167. 0579. 98 ease 72 is listed with “-”) (i) Total compr 5832 3477 3477 - ehensi 3910 9743 1192 3466 7.88 241.8 0519ve 9.06 6.94 5.07 incom 7 e (ii) Owne rs’ devot ed 1117 1117 4900 1607 and 457.7 457.77 7 00.00 457.7 decre 7 ased capita l 1.Co mmon shares invest 4900 4900 ed by 00.00 00.00 share holder s 2.Cap ital invest ed by holder s of other 107深圳市深粮控股股份有限公司2024年年度报告全文 equity instru ments 3. Amou nt recko ned into owner s equity with share- based paym ent 4.111711171117 Other 457.7 457.7 457.77 7 7 (III) - - - - Profit 4347 3316 2881 1559 3037 distrib 9201. 0.0071 1301 3381 9925. 3373ution 5.21 3.50 85 9.35 1. Withd rawal - of 4347 surplu 9201. 4347 9201.0.00 s 71 71 reserv es 2. Withd rawal of gener al risk provis ions 3. Distri bution for - - - owner 2881 2881 2881 s (or 3381 3381 3381 share 3.50 3.50 3.50 holder s) -- 4.15591559 Other 9925. 9925. 8585 (IV) Carryi ng forwa rd intern al owner s’ equity 1. Capit al reserv es conve rsed to capita l (share capita l) 2. Surpl us reserv 108深圳市深粮控股股份有限公司2024年年度报告全文 es conve rsed to capita l (share capita l) 3. Reme dying loss with surplu s reserv e 4.Carr y- over retain ed earnin gs from the define d benefi t plans 5.Carr y- over retain ed earnin gs from other compr ehensi ve incom e 6. Other (V) Reaso nable 5216 5216 5216 reserv 66.49 66.49 66.49 e 1. Withd rawal 1981 1981 1981 in the 520.9 520.9 520.9 report 8 8 8 period 2. Usage - - - in the 1459 1459 1459 report 854.4 854.4 854.4 period 9 9 9 (VI)O thers IV.Balan ce at the 1152 1276 - 4831 1916 4828 5320 4881 end of 5352 1515 8331 7419 68.1903360.00792549159554.7010 the 54.00 23.07 74.82 6.38 66.57 03.39 68 58.07 report period 109深圳市深粮控股股份有限公司2024年年度报告全文 8.Statement of Changes in Owners’ Equity (Parent Company) Current Period In RMB 2024 Other equity instrument Less: OtherItem Share Perpetua Capital Inventor compreh Reasona Surplus Retaine Total capital Preferre l capital Other reserve y shares ensive ble reserve reserve d profit Other owners’ d stock securitie income equity s I.Balance at the 115253 end of 5254.00 0.00 0.00 0.00 301810210698416632479797 6568.27938.24837.223597.73 the last year Add: Changes of accounti ng policy Error correcti on of the last period Other II.Balance at the 115253 beginnin 5254.00 0.00 0.00 0.00 301810210698416632479797 6568.27938.24837.223597.73 g of this year III.Increase / Decreas e in this year 191716. 133626 972129 110594 (Decrea 28 331.30 930.91 7978.49 se is listedwith “-”) (i) Total compreh 133626 133626 ensive 3313.01 3313.01 income (ii) Owners’ devoted 191716. 191716.and 28 28 decrease d capital 1.Comm on shares invested by sharehol ders 2.Capita l invested by holders of other equity instrume nts 3. Amount reckone 110深圳市深粮控股股份有限公司2024年年度报告全文 d into owners equity with share- based payment 4. Other 191716. 191716.28 28 (III) Profit 133626 - - distribut 331.30 364133 230507 ion 382.10 050.80 1. Withdra 133626 -wal of 331.30 133626 0.00surplus 331.30 reserves 2. Distribu tion for owners (or sharehol ders) -- 3. Other 230507 230507 050.80050.80 (IV) Carryin g forward internal owners’ equity 1. Capital reserves convers ed to capital (share capital) 2. Surplus reserves convers ed to capital (share capital) 3. Remedy ing loss with surplus reserve 4.Carry- over retained earnings from the defined benefit plans 5.Carry- over retained earnings from other compreh ensive income 6. Other (V) Reasona ble reserve 111深圳市深粮控股股份有限公司2024年年度报告全文 1. Withdra wal in the report period 2. Usage in the report period (VI)Oth ers IV.Balance at the end of 115253 0.00 0.00 0.00 301829 344325 138876 590392 the 5254.00 8284.55 269.54 2768.13 1576.22 report period Last period In RMB 2023 Other equity instrument Item Share Perpetua Capital Less: Other capital Inventor compreh Reasona Total Preferre l capital reserve ensive ble Surplus Retaine Other owners’ d stock securitie Other y shares income reserve reserve d profit equity s I.Balance at the 115253 301810 167219 313453 465131 end of 5254.00 6568.27 736.53 835.38 5394.18 the last year Add: Changes of accounti ng policy Error correcti on of the last period Other II.Balance at the 115253 301810 167219 313453 465131 beginnin 5254.00 6568.27 736.53 835.38 5394.18 g of this year III.Increase / Decreas e in this year 434792 103179 146658 (Decrea 01.71 001.84 203.55 se is listedwith “-”) (i) Total compreh 434792 434792 ensive 017.05 017.05 income (ii) Owners’ devoted and decrease d capital 112深圳市深粮控股股份有限公司2024年年度报告全文 1.Comm on shares invested by sharehol ders 2.Capita l invested by holders of other equity instrume nts 3. Amount reckone d into owners equity with share- based payment 4. Other (III) Profit 434792 - - distribut 01.71 331613 288133 ion 015.21 813.50 1. Withdra wal of 434792 - 01.71 434792surplus 01.71 reserves 2. Distribu tion for - - owners 288133 288133 (or 813.50 813.50 sharehol ders) 3. Other (IV) Carryin g forward internal owners’ equity 1. Capital reserves convers ed to capital (share capital) 2. Surplus reserves convers ed to capital (share capital) 3. Remedy ing loss with surplus reserve 4.Carry- over retained earnings from the defined 113深圳市深粮控股股份有限公司2024年年度报告全文 benefit plans 5.Carry- over retained earnings from other compreh ensive income 6. Other (V) Reasona ble reserve 1. Withdra wal in the report period 2. Usage in the report period (VI)Oth ers IV.Balance at the end of 115253 301810 210698 416632 479797 the 5254.00 6568.27 938.24 837.22 3597.73 report period 114深圳市深粮控股股份有限公司2024年年度报告全文 III. Basic information of Company Shenzhen Cereals Holdings Co. Ltd. (formerly the Shenzhen Shenbao Industrial Co. Ltd. hereinafter referred to as “SZCH” “Company” or “the Company” ) formerly named Shenzhen Shenbao Canned Food Company obtained approval (Document (1991) No.978) from Shenzhen Municipal People’s Government to change to the name as Shenzhen Shenbao Industrial Co. Ltd. on August 1991.Approved by the People’s Bank of China(Document (1991)No.126) the Company was listed on Shenzhen Stock Exchange. The Company belongs to the grain oil food and beverage industry.As of December 31 2023 the cumulative amount of shares issued by the Company was 1152535254 shares with registered capital of 1152535254.00 yuan. Registered address: Shenzhen Guangdong Province; HQ of the Company: 8/F Tower B No.4 Building Software Industry Base South District Science & Technology Park Xuefu Rd. Yuehai Street Nanshan District Shenzhen.Main business of the Company: wholesale and retail business food processing and manufacturing business leasing and business service business. The wholesale and retail business mainly involves the sales of grain and oil products such as rice wheat rice corn barley sorghum edible oil etc. as well as fine tea beverages and condiments. The food processing and manufacturing business mainly includes the processing of flour rice edible oil tea and natural plant extracts beverages condiments etc. The leasing and business service business provides grain oil and food and beverage import and export trade warehousing and storage logistics and distribution quality testing information technology services property leasing and management commercial operation management and other services for all kinds of customers upstream and downstream of the industrial chain.The parent enterprise of the Company is Shenzhen Food Materials Group Co. Ltd and the actual controller of the Company is Shenzhen Municipal People’s Government State-owned Assets Supervision & Administration Commission The financial statements and notes to financial statements has been approved by the14th meeting of the 11th session of BOD of the company on April 28 2025.IV. Basis of preparation of financial statements 1. Basis of preparation The financial statement are prepared in line with the Accounting Standards for Business Enterprise -Basic Standard issued by Ministry of Finance and specific accounting principle as well as the application guidance for the accounting principles for enterprise interpretation to the accounting principles for enterprise and other related requirements (hereinafter referred to as Accounting Standards for Business Enterprise) combining the Information Disclosure Preparation Rules for Company Public Issuing Securities No.15-General Rules for Financial Report of the CSRC(Revised in 2023). 2. Going concern The financial statement has been prepared on a going concern basis.V. Major accounting policy and accounting estimate Specific accounting policies and accounting estimate tips: the company has determined fixed asset depreciation intangible asset amortization and revenue recognition policies based on its own production and operation characteristics. Specific accounting policies can be found in Note III.17 Note III. 21 Note III.22 and Note III.27. 115深圳市深粮控股股份有限公司2024年年度报告全文 1. Statement for observation of Accounting Standard for Business Enterprise The financial statements prepared by the Company are in accordance to requirements of Accounting Standard for Business Enterprise issued by Ministry of Finance which truly and completely reflect the financial status of the Company and parent company on December 31 2024 as well as the consolidate and parent company’s operational results and cash flow for year of 2024. 2. Accounting period Calendar year is the accounting period for the Company that is falls to the range starting from 1 January to 31 December. 3. Operating cycle Operating cycle of the Company is 12 months 4. Standard currency The Company and its subsidiaries take RMB as the standard currency for bookkeeping. Overseas subsidiaries select their accounting base currency based on the currency of the main economic environment in which they operate. 5. Method for determining importance criteria and selection criteria ? Applicable □ Not applicable Item Importance criteria Important accounts receivable with single provision for bad debt reserves Amount ≥ 10000000 Other accounts receivable with significant single provision for bad debt reserves Amount ≥10000000 6. Accounting treatment methods for business combinations under the same control and those not under the same control (1) Merger of enterprises under the same control For merge of business under the same control the assets and liabilities of the merged party acquired by the merging party in the merger shall be measured at the carrying amount of the merged party in the final controlling party’s consolidated financial statements on the merger date. The difference between the book value of the merger consideration (or the total face value of the issued shares) and the book value of the net assets obtained in the merger shall be adjusted to the capital reserve (share premium). If the capital reserve (share premium) is insufficient to offset the retained earnings shall be adjusted.Implementing enterprise mergers under the same control through multiple transactions and step-by-step implementation The assets and liabilities of the merged party acquired by the merging party in the merger shall be measured at their carrying amounts in the consolidated financial statements of the ultimate controlling party on the merger date; The difference between the book value of the investments held before the merger and the book value of the newly paid consideration on the merger date and the book value of the net assets obtained during the merger is adjusted to the capital reserve (share premium). If the capital reserve is insufficient to offset the retained earnings are adjusted. The long-term equity investment held by the merging party before obtaining control of the merged party shall be offset against the beginning retained earnings or current period gains/losses of the comparative financial period 116深圳市深粮控股股份有限公司2024年年度报告全文 respectively in case the relevant gains/losses other comprehensive income and other changes in shareholders’ equity have been recognized within the period from the latter between the date of acquiring the original equity and the date when the merging party and the merged party are under the same ultimate control as the merging party to the merging date. (2) Merger of enterprises not under the same control For merge of enterprises not under the same control the merger cost is the fair value of the assets paid liabilities incurred or assumed and equity securities issued on the acquisition date to obtain control over the acquired party. On the purchase date the assets liabilities and contingent liabilities of the acquired party are recognized at fair value.The difference between the merger cost and the fair value share of identifiable net assets obtained from the acquired party in the merger shall be recognized as goodwill and subsequently measured at cost minus accumulated impairment provisions; In case the merge cost is lower than the fair value of identifiable net assets obtained from the acquired party in the merge the difference shall be recognized in the gains/losses of current period after review.Implementing business mergers under different control through multiple transactions in stages The merger cost is the sum of the consideration paid on the purchase date and the fair value of the equity of the acquired party held prior to the purchase date. For the equity of the purchased party already held before the purchase date it shall be remeasured at its fair value on the purchase date and the difference between the fair value and its book value shall be recognized in the current investment income; The changes in other comprehensive income and other shareholders’ equity involved with the equity of the purchased party before purchase date shall be carried forward to the current income of the purchase date not including other comprehensive income arising from changes in net liabilities or net assets if the invested entity remeasures the defined benefit plan as well as other comprehensive income related to non-trading equity instrument investments that were originally designated to be measured at fair value with changes recognized in other comprehensive income. (3) Treatment of transaction costs in enterprise merger The intermediary fees for auditing legal services evaluation and consulting as well as other related management expenses incurred for business mergers are recognized in the current period’s gains/losses when incurred. The transaction costs of equity or debt securities issued as consideration for the merger shall be included in the initial recognition amount of equity or debt securities. 7. Criteria for judging control and preparation methods for consolidated financial statements (1) Criteria for judging control The consolidation scope of the consolidated financial statements is determined based on control. Control refers to the company having the power over the invested entity enjoying variable returns through participating in related activities of the invested entity and having the ability to use the power over the invested entity to influence its return amount. When changes in relevant facts and circumstances result in changes in the relevant elements involved in the definition of control the company will conduct reassessment.When determining whether to include a structured entity in the scope of consolidation the company takes into account all facts and circumstances including evaluating the purpose and design of the establishment of the structured entity identifying the types of variable returns and evaluating whether to control the structured entity by participating in its related activities and assuming some or all of the variability of returns. (2) Method of preparing consolidated financial statements The consolidated financial statements are based on the financial statements of the Company and its subsidiaries and are prepared by the Company based on other relevant information. When preparing consolidated financial statements the accounting policies and 117深圳市深粮控股股份有限公司2024年年度报告全文 period requirements of the Company and its subsidiaries are consistent and significant transactions and balances between companies are offset.During the reporting period subsidiaries and businesses added due to merge of enterprises under the same control shall be deemed to be included in the scope of the company’s consolidation from the date of being under the same ultimate control. The operating results and cash flows from the date of being under the same ultimate control shall be separately included in the consolidated income statement and consolidated cash flow statement.During the reporting period the income expenses and profits of subsidiaries and businesses added due to merge of enterprises not under the same control from the purchase date to the end of the reporting period shall be included in the consolidated income statement and their cash flows shall be included in the consolidated cash flow statement.The portion of the shareholder’s equity of the subsidiary that does not belong to the company shall be separately listed as minority shareholder’s equity in the consolidated balance sheet under the shareholder's equity item; The shares belonging to minority interests in the current net gains and losses of subsidiaries are presented as minority interests under the net profit in the consolidated income statement. In case the losses assumed by the minority shareholders in the subsidiary exceed their share in the initial owner's equity of the subsidiary the balance shall still offset against the decrease in the minority shareholder’s equity. (3) Purchase of minority shareholder equity in subsidiary companies The difference between the cost of newly acquired long-term equity investments due to the purchase of minority equity and the net asset that should be continuously calculated from the date of purchase or merger based on the new shareholding ratio as well as the difference between the disposal price obtained from partial disposal of equity investments in subsidiaries without losing control and the net asset that should be continuously calculated from the date of purchase or merger corresponding to the disposal of long-term equity investments shall be adjusted to the capital reserve (share premium) in the consolidated balance sheet. If the capital reserve is insufficient to offset retained earnings shall be adjusted. (4) Treatment of loss of control over subsidiaries If control over the original subsidiary is lost due to the disposal of partial equity investments or other reasons the remaining equity shall be remeasured at fair value on the date of loss of control; The difference between the sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the sum of the book value of net asset book of the original subsidiary that should have been continuously calculated from the purchase date based on the original shareholding ratio and the goodwill is recognized in the investment income for the period when control is lost.Other comprehensive income related to equity investments in the original subsidiary should be accounted for on the same basis as the direct disposal of related assets or liabilities by the original subsidiary when control is lost. Other changes in owner’s equity related to the original subsidiary and measured at equity method should be transferred to the current period’s gains and losses when control is lost. 8. Classification of joint venture arrangements and accounting treatment methods for joint operations Joint venture arrangement refers to an arrangement jointly controlled by two or more participating parties. The joint venture arrangements of the company are divided into joint operations and joint ventures. (1) Joint operation In joint operation the company enjoys the assets related to the arrangement and assumes the liabilities related to the arrangement.The company confirms the following items related to the share of interests in joint operations and conducts accounting treatment in 118深圳市深粮控股股份有限公司2024年年度报告全文 accordance with the relevant accounting standards for enterprises: A. Recognize individually held assets and jointly held assets based on their respective shares; B. Recognize individual liabilities and jointly assume liabilities based on their respective shares; C. Recognize the income generated from the sale of its share of joint operating output; D. Recognize the revenue generated from the sale of output in joint operations based on their share; E. Recognize the expenses incurred separately and the expenses incurred in joint operations based on their respective shares. (2) Joint venture In a joint venture the company only has the right to the net assets arranged by it.The company accounts for investments in joint ventures in accordance with the provisions of equity method accounting for long-term equity investments. 9. Recognition standards for cash and cash equivalents Cash refers to the cash on hand and cash equivalents of deposits that can be used for payment at any time. Cash equivalent refers to the investment held by the Company with short maturity and strong liquidity that are easy to be converted into known amounts with little risk of change in cash value. 10. Foreign currency transactions and foreign currency statement translation (1)Foreign currency transactions The company conducts foreign currency business and converts the amount of the accounting currency at the exchange rate which is determined in a systematic and reasonable manner and is approximately the spot exchange rate on the date of transaction.On the balance sheet date foreign currency monetary items are converted with the spot exchange rate on the balance sheet date. The exchange difference arising from the difference between the spot exchange rate on the balance sheet date and the exchange rate for initial recognition or on the previous balance sheet date shall be recognized in the current period's gains and losses; For foreign currency non-monetary items measured at historical cost the spot exchange rate on the transaction date shall still be used for translation; For foreign currency non-monetary items measured at fair value the spot exchange rate on the date of fair value determination is adopted. The difference between the converted amount in the accounting currency and the original amount in the accounting currency is recognized in the gains and losses of current period or other comprehensive income based on the nature of the non-monetary item. (2) Translation of foreign currency financial statements At the balance sheet date when translating the foreign currency financial statements of overseas subsidiaries for the assets and liabilities items in the balance sheet the spot exchange rate on the balance sheet date is used for translation. For the items of shareholders’ equity except for “retained profits” other items are translated at the spot exchange rate on the date of occurrence.For the revenue and expense items in the income statement the exchange rate determined by a reasonable method of the system and approximate to the spot exchange rate on the transaction date will be available for translation. 119深圳市深粮控股股份有限公司2024年年度报告全文 All items in the cash flow statement are translated at the exchange rate determined by a reasonable method of the system and approximate to the spot exchange rate on the date of cash flow occurrence. The impact amount of exchange rate fluctuations on cash is treated as an adjustment item and is booked into the “Impact of Exchange Rate Fluctuations on Cash and Cash Equivalents” which is separately presented in the cash flow statement.The difference arising from the translation of financial statements is presented in “Other Comprehensive Income” under the shareholders’ equity items in the balance sheet.In case of disposing of an overseas operation and losing control rights the translation difference of the foreign currency statements related to this overseas operation which is presented under the items of owners' equity in the balance sheet shall be transferred in full or in proportion to the gains/losses of the period of the disposal of such oversea operation. 11.Financial instrument Financial instrument is the contract that forms the financial asses for an enterprise and forms the financial liability or equity instrument for other units. (1) Recognition and de-recognition of financial instruments The company recognizes the financial asset or liability when it becomes a party to a financial instrument contract.Financial assets that meet one of the following conditions shall be derecognized: * The contractual right to receive cash flows from the financial asset is terminated; * The financial asset has been transferred and meets the conditions for derecognizing the transfer of financial assets as follows.In case the current obligations of a financial liability have been fully or partially relieved the financial liability or a portion thereof shall be derecognized. In case the company (debtor) signs an agreement with creditors to replace existing financial liabilities by assuming new financial liabilities and the contractual terms of the new financial liabilities are substantially different from those of the existing financial liabilities the existing financial liabilities shall be derecognized and the new financial liabilities shall be recognized simultaneously.The financial assets bought or sold in conventional manners shall be recognized or derecognized on the trading day. (2) Classification and initial measurement of financial assets At the initial recognition according to the business model of managing financial assets and the contractual cash flow characteristics of financial assets the Company classifies the financial assets into the financial assets measured at amortized cost the financial assets measured at fair value and whose changes are included in other comprehensive income and the financial assets measured at fair value and whose changes are included in current profit or loss.Financial assets are measured at fair value for initial recognition. For financial assets measured at fair value with changes recognized in the gains and losses of current period the relevant transaction costs are directly recognized in the gains and losses of current period; For other categories of financial assets relevant transaction costs are included in the initial recognition amount. The accounts receivable arising from the sale of products or provision of services which do not include or consider significant financing components shall be recognized at the expected amount of consideration that the company is entitled to receive for initial recognition.Financial assets measured at amortized cost The Company classifies the financial assets that meet the following conditions and are not designated as financial assets measured at fair value and whose changes are included in current profit or loss as financial assets measured at amortized cost: 120深圳市深粮控股股份有限公司2024年年度报告全文 * The group’s business model for managing the financial assets is to collect contractual cash flows; and * The contractual terms of the financial assets stipulate that cash flow generated on a specific date will be only used to pay for the principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost with the effective interest method. Gains or losses arising from financial assets which are measured at amortized cost and are not a component of any hedging relationship are included in current profit or loss when being terminated for recognition amortized by effective interest method or impaired.Financial assets measured at fair value and whose changes are included in other comprehensive income The Company classifies the financial assets that meet the following conditions and are not designated as financial assets measured at fair value and whose changes are included in current profit or loss as financial assets measured at fair value and whose changes are included in other comprehensive income: * The Group's business model for managing the financial assets is targeted at both the collection of contractual cash flows and the sale of financial assets; and * The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only used to pay for the principal and the interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interests impairment losses or gains and exchange gains and losses calculated with the effective interest method are included in profit or loss for the period and other gains or losses are included in other comprehensive income. At the time of derecognition the accumulated gains or losses previously included in other comprehensive income shall be carried forward from other comprehensive income to current profit or loss.Financial assets measured at fair value and whose changes are included in current profit or loss Except for the above financial assets measured at amortized cost and measured at fair value and whose changes are included in other comprehensive income the Company classifies all other financial assets as financial assets measured at fair value and whose changes are included in current profit or loss. In the initial recognition in order to eliminate or significantly reduce accounting mismatch the Company irreversibly designates part of the financial assets that should be measured at amortized cost or measured at fair value and whose changes are included in the other comprehensive income as the financial assets measured at fair value and whose changes are included in current profit or loss.After the initial recognition such financial assets are subsequently measured at fair value and the gains or losses (including interests and dividend income) are included in the current profit and loss unless the financial assets are part of the hedging relationship.The business model of managing financial assets refers to how the company manages financial assets to generate cash flow. The business model determines whether the source of cash flow for the financial assets managed by the company is to receive contract cash flow sell financial assets or a combination of both. the company determines the business model for managing financial assets based on objective facts and specific business objectives determined by key management personnel.The company evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual cash flow generated by the relevant financial assets on a specific date is only for the payment of principal and interest based on the outstanding principal amount. Principal refers to the fair value of financial assets at initial recognition; Interest includes consideration for the time value of money credit risk associated with outstanding principal amounts for a specific period and other basic lending risks costs and profits. In addition the company evaluates contract terms that may cause changes in the time distribution or amount of cash flows in financial asset contracts to determine whether they meet the requirements of the aforementioned contract cash flow characteristics. 121深圳市深粮控股股份有限公司2024年年度报告全文 Only when the company changes its business model for managing financial assets all affected related financial assets shall be reclassified on the first day of the first reporting period after the change in business model. Otherwise financial assets shall not be reclassified after initial recognition. (3) Classification and measurement of financial liabilities The financial liabilities of the company are classified at initial recognition as financial liabilities measured at fair value through gains and losses of current period financial liabilities measured at amortized cost. For financial liabilities that are not classified as measured at fair value and whose changes are recognized in the gains and losses of current period the relevant transaction costs are included in their initial recognition amount.Financial liabilities measured at fair value through gains and losses Financial liabilities measured at fair value through gains and losses include trading financial liabilities and financial liabilities designated at initial recognition as measured at fair value through profit or loss. For such financial liabilities subsequent measurements are made at fair value and gains or losses resulting from changes in fair value as well as dividends and interest expenses related to such financial liabilities are recognized in the gains and losses of current period.Financial liabilities measured at amortized cost Other financial liabilities are measured with effective interest rate method at amortized cost and any gains or losses arising from derecognition or amortization are recognized in the gains and losses of current period.The distinction between financial liabilities and equity instruments Financial liabilities refer to liabilities that meet one of the following conditions: * The contractual obligation to deliver cash or other financial assets to other parties.* Contractual obligations to exchange financial assets or liabilities with other parties under potential adverse conditions.* Non-derivative instrument contracts that require or can be settled with the company’s own equity instruments in the future and the company will deliver a variable number of its own equity instruments according to this contract.* Derivative instrument contracts that require or can be settled with the company’s own equity instruments in the future except for derivative instrument contracts where a fixed amount of self-equity instruments is exchanged for a fixed amount of cash or other financial assets.Equity instruments refer to contracts that prove ownership of the remaining equity in assets of a certain enterprise after deducting all liabilities.If the company cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other financial assets such contractual obligation meets the definition of financial liability.If a financial instrument needs to be settled or can be settled with the company’s own equity instruments it is necessary to consider whether the company’s own equity instruments used to settle the instrument are used as substitutes for cash or other financial assets or to enable the holder of the instrument to enjoy the remaining equity in the assets after deducting all liabilities from the issuer. If it is the former the instrument is the financial liability of the company; If it is the latter the instrument is the equity instrument of the company. (4) Derivative financial instruments and embedded derivative instruments 122深圳市深粮控股股份有限公司2024年年度报告全文 The derivative financial instruments of the company are initially measured at fair value on the date of signing the derivative transaction contract and are subsequently measured at their fair value. The derivative financial instruments with a positive fair value are recognized as an asset while those with a negative fair value are recognized as a liability. Any gains or losses arising from changes in fair value that do not comply with hedge accounting regulations are directly recognized in the gains and losses of current period.For mixed instruments containing embedded derivative instruments in case the main contract is a financial asset the relevant provisions for financial asset classification shall apply to the mixed instruments as a whole. If the main contract is not a financial asset and the mixed instrument is not measured at fair value through gains and losses the embedded derivative instrument is not closely related to the main contract in terms of economic characteristics and risks and has the same conditions as the embedded derivative instrument and the separate instrument meets the definition of a derivative instrument the embedded derivative instrument is separated from the mixed instrument and treated as a separate derivative financial instrument. If it is not possible to separately measure embedded derivative instruments at the time of acquisition or subsequent balance sheet dates the mixed instrument as a whole shall be designated as a financial asset or liability measured at fair value with its changes recognized in the gains and losses of current period. (5) Fair value of financial instruments The method for determining the fair value of financial assets and financial liabilities can be found in Note III. 12 of the audit report. (6) Impairment of financial assets Based on expected credit losses the company conducts impairment accounting treatment and recognizes loss provisions for the following items: Financial assets measured at amortized cost; Accounts receivable and debt instrument investments measured at fair value with changes recognized in other comprehensive income; Contract assets defined in Enterprise Accounting Standard No. 14- Revenue; Lease receivables; Financial guarantee contracts (excluding those measured at fair value through profit or loss transfer of financial assets that do not meet the termination recognition conditions or continued involvement in the transferred financial assets).Measurement of expected credit losses Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of default. Credit loss refers to the present value of all cash shortages which is the difference between all contractual cash flows receivable discounted at the original effective interest rate and expected cash flows received by the company.Considering reasonable and evidence-based information regarding past events current conditions and predictions of future economic conditions with the risk of default as the weight the company calculates the probability weighted amount of the present value of the difference between the cash flows receivable under the contract and the expected cash flows to be received and recognize the expected credit loss. 123深圳市深粮控股股份有限公司2024年年度报告全文 The company measures the expected credit losses of financial instruments at different stages separately. If the credit risk of financial instruments has not significantly increased since initial recognition they are in the first stage and the company measures the loss provision based on the expected credit losses within the next 12 months; If the credit risk of a financial instrument has significantly increased since initial recognition but has not yet experienced credit impairment it is in the second stage and the company measures the provision for losses based on the expected credit losses of the instrument over its entire duration; If a financial instrument has experienced credit impairment since its initial recognition it is in the third stage and the company measures the provision for losses based on the expected credit losses of the instrument over its entire duration.For financial instruments with lower credit risk on the balance sheet date the company assumes that their credit risk has not significantly increased since initial recognition and measures loss provisions based on expected credit losses over the next 12 months.The expected credit loss for the entire expected duration of a financial instrument refers to the expected credit loss caused by all possible default events that may occur throughout the expected duration of the financial instrument. The expected credit loss within the next 12 months implies the expected credit loss that may occur due to a default event of a financial instrument within the next 12 months after the balance sheet date (within the expected duration in case the expected maturity of the financial instrument is less than 12 months) which is a part of the expected credit loss for the entire duration). When measuring expected credit losses the longest term that the company needs to consider is the longest contract term that the enterprise faces credit risk (including considering renewal options).For financial instruments in the first and second stages as well as those with lower credit risk the company calculates interest income based on their book balance without deducting impairment provisions and actual interest rate. For financial instruments in the third stage interest income is calculated based on their book balance minus the amortized cost of impairment provisions and the actual interest rate.For receivables such as notes receivable accounts receivable and other receivables if the credit risk characteristics of a certain customer are significantly different from those of other customers in the portfolio or if there is a significant change in the credit risk characteristics of that customer the company will make individual separate bad debt reserve for that receivable. Except for accounts receivable with individual bad debt reserve the company classifies accounts receivable into portfolios based on credit risk characteristics and calculates bad debt reserve on the basis of portfolio.Notes receivable accounts receivable and contract assets For notes receivable and accounts receivable regardless of whether there are significant financing components the company always measures its loss provision at an amount equivalent to the expected credit loss for the entire duration.When it is unable to assess the expected credit losses of a single financial asset at a reasonable cost the company categories accounts receivable and notes receivable into portfolios based on credit risk characteristics calculates expected credit losses on the basis of portfolio and determines the basis for portfolio and the method for measuring expected credit losses as follows: A. Notes receivable Accounts receivable portfolio 1: Bank acceptance bill Accounts receivable portfolio 2: Commercial acceptance bill B. Accounts receivable Accounts receivable portfolio 1: Sales receivables portfolio Accounts receivable portfolio 2: Specific object portfolio 124深圳市深粮控股股份有限公司2024年年度报告全文 For accounts receivable and contract assets classified into portfolio the company based on historical credit loss experience combined with current conditions and predictions of future economic conditions calculate the expected credit loss by default risk exposure and the expected credit loss rate for the entire duration For accounts receivable classified into portfolio the company based on historical credit loss experience combined with current conditions and predictions of future economic conditions prepare a comparison table between the aging of accounts receivable and the expected credit loss rate for the entire duration and calculate the expected credit loss. The aging of the accounts receivable is calculated since the recognition date of accounts receivable.Other receivables The company categories other receivables into several combinations based on credit risk characteristics calculates expected credit losses on the basis of portfolio and determines the basis for portfolio as follows: Other accounts receivable portfolio 1: Expected portfolio of credit risk characteristics Other accounts receivable portfolio 2: Specific object portfolio For other receivables classified into portfolio the company based on historical credit loss experience calculate the expected credit loss by default risk exposure and the expected credit loss rate over the next 12 months or the entire duration. The aging of the accounts receivable is calculated since the recognition date of other accounts receivable.Debt investment and other debt investments For debt investments and other debt investments the company calculates expected credit losses based on the nature of the investment various types of counterparties and risk exposure default risk exposure and expected credit loss rate for the next 12 months or the entire duration.Assessment of significant increase in credit risk The company compares the risk of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date to determine the relative change in default risk during the expected duration of financial instruments in order to evaluate whether the credit risk of financial instruments has significantly increased since initial recognition.When determining whether credit risk has significantly increased since initial recognition the company considers reasonable and evidence-based information including forward-looking information that can be obtained without unnecessary additional costs or efforts. The information considered by the company includes: The debtor fails to pay the principal and interest on the due date of the contract; Serious deterioration of external or internal credit ratings (if any) of financial instruments that have occurred or are expected to occur; Serious deterioration of the debtor's operating results that has occurred or is expected to occur; Existing or anticipated changes in technology market economy or legal environment that will have a significant adverse impact on the debtor's ability to repay the company.Based on the nature of financial instruments the company evaluates whether credit risk significantly increases based on individual financial instruments or combinations of financial instruments. When performing assessment based on financial instruments portfolio the company can classify financial instruments based on common credit risk characteristics such as overdue information and credit risk ratings. 125深圳市深粮控股股份有限公司2024年年度报告全文 If the overdue period exceeds 30 days the company determines that the credit risk of the financial instrument has significantly increased.Financial assets that have experienced credit impairment The company assesses on the balance sheet date whether financial assets measured at amortized cost and debt investments measured at fair value with changes recognized in other comprehensive income have experienced credit impairment. When one or more events that have an adverse impact on the expected future cash flows of a financial asset occur the financial asset becomes a financial asset that has experienced credit impairment. Evidence of credit impairment of financial assets includes the following observable information: The issuer or debtor encounters significant financial difficulties; The debtor violates the contract such as paying interest or principal in default or overdue; Due to economic or contractual considerations related to the financial difficulties of the debtor the company will not make any concessions to the debtor under any other circumstances; The debtor is likely to go bankrupt or undergo other financial restructuring; The financial difficulties of the issuer or debtor have led to the disappearance of the active market for the financial asset.Reporting of provisions for expected credit losses To reflect the changes in credit risk of financial instruments since initial recognition the company remeasures expected credit losses on each balance sheet date. The consequent increase or reversal of loss provisions should be recognized as impairment losses or gains in the gains and losses of current period. For financial assets measured at amortized cost the provision for losses shall offset the booking amount of the financial asset as stated in the balance sheet; For debt investments measured at fair value with changes recognized in other comprehensive income the loss provision shall be recognized in other comprehensive income and does not offset the booking amount of the financial asset.Write-off If the company no longer reasonably expects the cash flow of the financial asset contract to be fully or partially recovered the book amount of the financial asset shall be directly written down. This writes down constitutes the derecognition of related financial assets.This situation usually occurs when the company determines that the debtor does not have assets or sources of income to generate sufficient cash flow to repay the amount to be written down. However according to the company’s procedures for recovering due payments the financial assets that have been written down may still be affected by execution activities.In case financial assets that have been written down are subsequently recovered the reversed impairment losses shall be booked into the gains and losses of current period. (7) Financial asset transfer Financial asset transfer refers to the transfer or delivery of financial assets to another party (transferee) other than the issuer of the financial asset.If the company has transferred almost all the risks and rewards of ownership of financial assets to the transferee the financial asset shall be derecognized; If almost all risks and rewards related to ownership of financial assets are retained the financial asset will not be derecognized. 126深圳市深粮控股股份有限公司2024年年度报告全文 In case the company neither transfers nor retains almost all the risks and rewards related to the ownership of financial assets the following situations shall be handled separately: if the control over the financial asset is abandoned the financial asset shall be derecognized and the resulting assets and liabilities shall be recognized; if the control over the financial asset is not abandoned the relevant financial asset shall be recognized based on the continued involvement of the company in the transferred financial asset and corresponding liabilities shall be recognized. (8) Balance-out between the financial assets and liabilities As the company has the legal right to balance out the financial liabilities by the net or liquidation of the financial assets the balance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition the financial assets and liabilities are listed in the balance sheet without being balanced out. 12. Note receivable 13. Account receivable 14. Receivable financing 15. Other account receivable 16. Contract asset 17. Inventory (1) Classification of inventory Inventory includes raw materials revolving material goods in process goods in transit and work in process-outsourced and so on. (2) Valuation methods for delivery of inventory The inventory of the company is valued at actual cost upon acquisition. The raw materials and inventory goods are priced using the weighted average method or individual valuation method at the time of shipping. (3) Determination basis and provision method for inventory depreciation reserves On the balance sheet date inventory is measured at the lower between cost and net realizable value. When its net realizable value is lower than cost the inventory impairment provision is made.The net realizable value is the amount obtained by subtracting the estimated cost to be incurred until completion estimated sales expenses and related taxes from the estimated selling price of inventory. When determining the net realizable value of inventory it is based on conclusive evidence obtained while considering the purpose of holding inventory and the impact of events after the balance sheet date.The company usually makes inventory impairment provision based on individual inventory items.On the balance sheet date if the factors affecting the previous write-down of inventory value have disappeared the inventory impairment provision shall be reversed within the originally provisioned amount. (4) Inventory system 127深圳市深粮控股股份有限公司2024年年度报告全文 Inventory system is the perpetual inventory system. (5) Amortization of low-value consumables and packaging materials Low-value consumables and packaging materials adopt the method of primary resale; 18.Asset held for sale (1) Recognition criteria and accounting treatment for non-current assets or disposal groups classified as held-for-sale category In case the company recovers the carrying value of a non-current asset or a disposal group mainly through selling (including non- monetary asset exchanges with commercial substance) rather than continuous use such non-current asset or disposal group shall be classified as held-for-sale category.The above-mentioned non-current assets do not include investment real estate measured subsequently at fair value biological assets measured at the net amount of fair value minus selling expenses assets formed from employee benefits financial assets deferred income tax assets and rights arising from insurance contracts.A disposal group refers to a group of assets that are disposed of as a whole through sale or other means in a single transaction as well as the liabilities directly related to these assets that are transferred in the transaction. Under certain circumstances a disposal group includes goodwill obtained in a business combination.Non-current assets or disposal groups that meet the following conditions simultaneously shall be classified as held-for-sale category categories: In accordance with the practice of selling such assets or disposal groups in similar transactions the non- current assets or disposal groups can be sold immediately in their current state; the sale is highly likely to occur that is a resolution has been made on a sales plan and a firm purchase commitment has been obtained and it is expected that the sale will be completed within one year. In the case of losing control over a subsidiary due to reasons such as the sale of investment in the subsidiary regardless of whether the company retains part of the equity investment after the sale when the investment in the subsidiary to be sold meets the classification conditions for the held-for-sale category the investment in the subsidiary as a whole shall be classified as the held-for-sale category in the individual financial statements and all the assets and liabilities of the subsidiary shall be classified as the held-for-sale category in the consolidated financial statements.When initially measuring or re-measuring a non-current asset or disposal group held-for-sale at the balance sheet date the difference between the carrying value and the net amount of fair value minus selling expenses shall be recognized as an asset impairment loss. For the amount of asset impairment loss recognized for a disposal group held-for-sale the carrying value of the goodwill in the disposal group shall be offset first and then the carrying values of the various non-current assets in the disposal group shall be offset proportionally according to the proportion of their respective carrying values.If the net amount of the fair value of a non-current asset or disposal group held-for-sale minus selling expenses increases at a subsequent balance sheet date the previously written-down amount shall be restored and reversed within the amount of asset impairment loss recognized after being classified as held-for-sale category and the reversed amount shall be included in the current gains/losses. The written-down carrying value of the goodwill shall not be reversed.The non-current assets held-for-sale and the assets in the disposal group held-for-sale shall not be depreciated or amortized; the interest and other expenses of the liabilities in the disposal group held-for-sale shall continue to be recognized. For all or part of the investment in associated enterprise or joint venture classified as held-for-sale category the equity method of accounting shall be suspended for the part classified as held-for-sale and the retained part not classified as held-for-sale category shall continue to be accounted with the equity method; in case the company loses significant influence over the associated enterprise or joint venture due to sale the equity method of accounting shall be suspended.If a certain non-current asset or disposal group is classified as held-for-sale category but later no longer meets the classification conditions for held-for-sale category the company shall stop classifying it as held-for-sale category and measure it at the lower of the following two amounts: 128深圳市深粮控股股份有限公司2024年年度报告全文 * The carrying value of the asset or disposal group before it was classified as held-for-sale category adjusted according to the depreciation amortization or impairment that should have been recognized assuming it had not been classified as held-for-sale category; * The recoverable amount. (2) Recognition criteria for discontinued operations Discontinued operation refers to a separately distinguishable component that has been disposed of by the company or classified as held-for-sale category by the company and meets one of the following conditions: * The component represents an independent major business or a separate major operating region.* The component is part of a related plan for the disposal of an independent major business or a separate major operating region.* The component is a subsidiary acquired specifically for resale. (3) Presentation The company presents the non-current assets held-for-sale or the assets in the disposal group held-for-sale in the balance sheet in “Assets held-for-sale” and presents the liabilities in the disposal group held-for-sale in “Liabilities held-for-sale”.The company presents the gains/losses from continuing operations and the gains/losses from discontinued operations separately in the income statement. For non-current assets or disposal groups held-for-sale that do not meet the definition of discontinued operations their impairment losses reversal amounts and disposal gains/losses are presented as the gains/losses from continuing operations. The impairment losses reversal amounts and other operating gains/losses as well as disposal gains/losses of discontinued operations are presented as gains/losses from discontinued operations.A disposal group that is intended to be taken out of use rather than sold and meets the conditions of the relevant component in the definition of discontinued operations shall be presented as a discontinued operation as of the date of its cessation of use.For the discontinued operations presented in the current period in the current financial statements the information that was originally presented as gains/losses from continuing operations is re-presented as gains/losses from discontinued operations for the comparable accounting period. If a discontinued operation no longer meets the classification conditions for the held-for-sale category in the current financial statements the information that was originally presented as gains/losses from discontinued operations is re-presented as gains/losses from continuing operations for the comparable accounting period. 19.Creditors’ investment 20.Other creditors’ investment 21.Long-term accounts receivable 22.Long-term equity investment Long term equity investments include equity investments in subsidiaries joint ventures and associated enterprises. In the joint venture the company is capable of exerting significant influence on the invested entity. (1) Determination of initial investment cost Long term equity investments formed from enterprise merge: For long-term equity investments obtained through merge of enterprise under the same control the investment cost shall be determined based on the share of the book value of the the shareholders’ equity of the merged party in the consolidated financial statements of the final controller on the merger date; The long-term equity investment obtained through the merger of enterprises not under the same control shall be recognized as the investment cost of the long-term equity investment based on the merger cost.Long-term equity investments obtained through other means: For the long-term equity investments obtained by paying cash the actual purchase price paid shall be the initial investment cost; For long-term equity investments obtained through the issuance of 129深圳市深粮控股股份有限公司2024年年度报告全文 equity securities the fair value of the issued equity securities shall be the initial investment cost. (2) Subsequent measurement and recognition methods of gains and losses Investments in subsidiaries are measured with the cost method unless the investment meets the conditions for holding for sale; Investments in associated enterprises and joint ventures are measured with equity method.For the long-term equity investments measured with cost method except for cash dividends or profits declared but not yet distributed in the actual payment or consideration received at the time of investment the cash dividends or profits declared by the investee shall be recognized as investment income and booked into gains and losses in current period.For long-term equity investments measured with the equity method if the initial investment cost is greater than the fair value of identifiable net assets of the invested entity held at the time of investment the investment cost of the long-term equity investment shall not be adjusted; If the initial investment cost is less than the fair value of the identifiable net assets of the invested entity held at the time of investment the book value of the long-term equity investment shall be adjusted and the difference shall be recognized in the gains and losses of the investment period.When measured with equity method investment income and other comprehensive income shall be recognized separately based on the share of net gains and losses and other comprehensive income that should be enjoyed or shared by the invested entity and the book value of long-term equity investments shall be adjusted; The book value of long-term equity investments shall be reduced correspondingly in terms of the portion that should be enjoyed based on the profits or cash dividends declared by the invested entity; Other changes in shareholders’ equity of the invested entity except for net gains and losses other comprehensive income and profit distribution shall adjust the book value of long-term equity investments and be booked into capital reserves (other capital reserves).Based on the fair value of identifiable assets of the invested entity at the time of acquisition of the investment the share of net gains and losses that should be enjoyed in the invested entity shall be adjusted according to the accounting policies and accounting periods of the company before recognition.If significant influence or joint control can be exerted on the invested entity due to additional investment or other reasons but does not constituting control on the conversion date the initial investment cost measured again with equity method shall be the sum of the fair value of the original equity and the additional investment cost. If the original equity is classified as a non-trading equity instrument investment measured at fair value with changes recognized in other comprehensive income the cumulative fair value changes related that were originally recognized in other comprehensive income shall be transferred to retained income when the equity method is used for accounting.If the joint control or significant impact on the invested entity is lost due to the disposal of some equity investments or other reasons the remaining equity after disposal shall be subject to accounting treatment in accordance with Accounting Standards for Enterprises No. 22- Recognition and Measurement of Financial Instruments on the date of loss of joint control or significant impact and the difference between fair value and book value shall be recognized in gains and losses in current period. Other comprehensive income recognized for equity investments with equity method shall be measured on the same basis as the direct disposal of relevant assets or liabilities by the invested entity when the equity method is terminated; Other changes in shareholders' equity related to the original equity investment are transferred to gains and losses in current period.If control over the investee is lost due to the disposal of a portion of equity investment or other reasons and the remaining equity after disposal can exercise joint control or significant influence over the investee it shall be measured with equity method and the remaining equity shall be deemed to be adjusted with the equity method from the time of acquisition; If the remaining equity after disposal cannot exercise joint control or have a significant impact on the invested entity it shall be measured in accordance with the relevant provisions of Enterprise Accounting Standard No. 22- Recognition and Measurement of Financial Instruments. The difference between the fair value and the book value on the date of loss of control shall be recognized in gains and losses in current 130深圳市深粮控股股份有限公司2024年年度报告全文 period.If the shareholding ratio of the Company decreases due to capital increase by other investors and the company loses control over the invested entity but is able to exercise joint control or exert significant influence on the invested entity the Company shall recognize the rising net assets of the invested entity held by the company due to capital increase and share expansion according to the new shareholding ratio and the difference between the original book value of the long-term equity investment corresponding to the decrease in shareholding ratio that should be carried forward shall be included in the current gains and losses and then it shall be adjusted in terms of the new shareholding ratio just as it is measured with equity method when the investment is obtained.The unrealized internal transaction gains and losses between the Company and its associated enterprises and joint ventures shall be calculated in terms of the proportion of shareholding and recognized as investment gains and losses on the basis of offsetting.However the unrealized internal transaction losses incurred by the Company and the invested entity which is the impairment losses of the transferred assets shall not be offset. (3) Criteria of joint control and significant influence Joint control is the Company’s contractually agreed sharing of control over an arrangement which relevant activities of such arrangement must be decided by unanimously agreement from parties who share control. When determining whether there is joint control firstly judge whether all the participants or participant group have controlling over such arrangement as a group or not and then judge whether the decision-making for such arrangement are agreed unanimity by the participants or not. If all participants or a group of participants must act together to determine the relevant activities of a certain arrangement it is considered that all participants or a group of participants collectively control the arrangement; If there are two or more portfolios of participants to collectively control a certain arrangement it does not constitute joint control. When determining whether there is joint control the protective rights enjoyed are not considered.Significant influence is the power of the Company to participate in the financial and operating policy decisions of an invested party but to fail to control or joint control the formulation of such policies together with other parties. When determining whether significant influence can be exerted on the invested entity the potential factors of voting power as current convertible bonds and current executable warrant of the invested party held by investors and other parties shall be considered.When the company directly or indirectly owns more than 20% (inclusive) but less than 50% of the voting shares of the invested entity through its subsidiaries it is generally considered to have a significant impact on the invested entity unless there is clear evidence that it cannot participate in the production and operation decisions of the invested entity and does not form a significant impact; When the company owns less than 20% (exclusive) of the voting shares of the invested entity it is generally not considered to have a significant impact on the invested entity unless there is clear evidence that it can participate in the production and operation decisions of the invested unit and form a significant impact. (4) Equity investments held-for-sale In case all or part of the equity investments in associated enterprise or joint venture are classified as assets held-for-sale the relevant accounting treatments are shown in Note III.14.The remaining equity investments that have not been classified as assets held-for-sale will be accounted with the equity method.If the equity investments in associated enterprise or joint venture that have been classified as assets held-for-sale no longer meet the classification conditions for assets held-for-sale retrospective adjustment shall be made with the equity method starting from the date when they were classified as assets held-for-sale. (5) Impairment testing methods and impairment provision methods Refer to Note III. 23 of auditor’s report for the method for making asset impairment for investments in subsidiaries associated enterprises and joint ventures. 131深圳市深粮控股股份有限公司2024年年度报告全文 23. Investment real estate Measurement model for investment real estate Measured with cost method Depreciation or amortization methods Investment real estate refers to real estate held for the purpose of earning rent or capital appreciation or both. The company’s investment real estate includes leased land use rights land use rights held and prepared for transfer after appreciation and leased buildings.The company's investment real estate is initially measured at cost at the time of acquisition and depreciated or amortized on a regular basis in accordance with relevant regulations for fixed or intangible assets.For investment properties that are subsequently measured with cost model the method for impairment of assets is shown in Note III. 24. The difference between the disposal income from sale transfer scrapping or damage of investment real estate after deducting its book value and related taxes and fees is recognized in gains and losses in current period. 24. Fixed assets (1) Recognition conditions The company’s fixed assets refer to tangible assets held for the production of goods provision of services rental or business management with a useful life exceeding one accounting year.Fixed assets can only be recognized when the economic benefits related to the fixed asset are likely to flow into the enterprise and the cost of the fixed asset can be reliably measured.The company’s fixed assets are initially measured at their actual cost at the time of acquisition.Subsequent expenses related to fixed assets are recognized as fixed asset costs when the economic benefits related to them are likely to flow into the company and their costs can be reliably measured; The daily repair expenses of fixed assets that do not meet the subsequent expenditure conditions for capitalization of fixed assets shall be recognized in gains and losses in current period or in the cost of related assets according to the beneficiaries at the time of occurrence. For the replaced part its book value shall be terminated. (2) Depreciation method 132深圳市深粮控股股份有限公司2024年年度报告全文 Category Method Years of Scrap value Yearly depreciationdepreciation rate rate House and buildings Production buildings Straight-linedepreciation 20-35 5.00 4.75-2.71 Non-production buildings Straight-linedepreciation 20-40 5.00 4.75-2.38 Temporary dormitory and simple room Straight-line etc. depreciation 5-15 5.00 19.00-6.33 Gas storage bin Straight-linedepreciation 20 5.00 4.75 Silo Straight-linedepreciation 50 5.00 1.90 Wharf and supporting facilities Straight-linedepreciation 50 5.00 1.90 Machinery equipment Straight-linedepreciation Other machinery equipment Straight-linedepreciation 10-20 5.00 9.50-4.75 Warehouse transmission equipment Straight-linedepreciation 20 5.00 4.75 Transport equipment Straight-linedepreciation 3-10 5.00 31.67-9.50 Electronic equipment and others Straight-linedepreciation 2-10 5.00 47.50-9.50 Among them for fixed assets with impairment provision the cumulative amount of impairment provision of fixed assets should also be deducted to determine the depreciation rate. (1) The methods for impairment testing of fixed assets and the methods for making impairment provision are described in Note III. 24. (2) At the end of each year the company reviews the useful lives estimated residual values and depreciation methods of its fixed assets.If there is a difference between the expected useful life and the original estimate the useful life of the fixed asset shall be adjusted; if there is a difference between the estimated residual value and the original estimate the estimated residual value shall be adjusted. (3) Disposal of fixed assets When a fixed asset is disposed of or it is expected that no economic benefits arise from its use or disposal such fixed asset shall be de-recognized. The amount obtained from the disposal of fixed asset (including sales transfers scrapping or damage) after deducting its carrying value and relevant taxes and fees shall be included in the current gains/losses. 25. Construction in progress The cost of construction in progress of the company is determined based on actual project expenses including necessary project expenses incurred during the construction period borrowing costs that should be capitalized before the project reaches its intended usable state and other related expenses.Construction in progress is transferred to fixed assets when it reaches its intended usable state.The method for impairment of assets for construction in progress can be found in Note III.24 of the auditor’s report. 133深圳市深粮控股股份有限公司2024年年度报告全文 26. Borrowing expenses (1) Recognition of the borrowing expenses capitalization The borrowing costs incurred by the company which can be directly attributed to the acquisition construction or production of assets that meet the capitalization conditions shall be capitalized and included in the relevant asset costs; Other borrowing costs are recognized as expenses based on their amount at the time of occurrence and included in the current profit and loss. The borrowing costs meeting the following conditions simultaneously shall be capitalized: * Asset expenses have already occurred including expenses incurred in the form of cash payments transfer of non-cash assets or assuming interest bearing debts for the purchase construction or production of assets that meet capitalization conditions; * The borrowing costs have already been incurred; * The necessary purchase construction or production activities to bring the assets to their intended usable or saleable state have already begun. (2) During the capitalization period of borrowing costs When assets purchased or produced by the company that meet capitalization conditions reach the intended usable or saleable state the capitalization of borrowing costs shall be ceased. The borrowing costs incurred after the assets that meet the capitalization conditions reach their intended usable or saleable status are recognized as expenses based on their amount at the time of occurrence and recognized in gains and losses in current period.If assets that meet the capitalization criteria experience abnormal interruptions during the purchase construction or production process and the interruption lasts for more than three consecutive months the capitalization of borrowing costs shall be suspended; The borrowing costs during the normal interruption period continue to be capitalized. (3) The capitalization rate of borrowing costs and the calculation method of capitalization amount The actual interest expenses incurred in the current period of specialized borrowing minus the interest income obtained from depositing unused borrowing funds into banks or the investment income obtained from temporary investments shall be capitalized; The capitalization amount of general borrowing is determined by multiplying the weighted average of the accumulated asset expenditures that exceed the portion of specialized borrowing by the capitalization rate of the general borrowing used. The capitalization rate is determined based on the weighted average interest rate of general borrowing.During the capitalization period all exchange differences on foreign currency borrowings shall be capitalized; The exchange difference of foreign currency general borrowings is recognized in gains and losses in current period. 27. Biological assets (1) Criteria for determining biological assets Biological assets refer to assets composed of living animals and plants. Biological assets that simultaneously meet the following conditions shall be recognized: * Asset expenses have already occurred including expenses incurred in the form of cash payments transfer of non-cash assets or assuming interest bearing debts for the purchase construction or production of assets that meet capitalization conditions; * The borrowing costs have already been incurred; * The necessary purchase construction or production activities to bring the assets to their intended usable or saleable state have 134深圳市深粮控股股份有限公司2024年年度报告全文 already begun. (2) Classification of biological assets The biological assets of the company include productive biological assets.* Productive biological assets The biological assets of the company are productive biological assets. Productive biological assets refer to biological assets held for the purpose of producing agricultural products providing services or renting. Productive biological assets are initially measured at cost. Subsequent expenses incurred on productive biological assets after achieving the intended production and operation objectives are recognized in gains and losses in current period.The management and feeding expenses incurred after the closure or achievement of the intended production and operation objectives of productive biological assets are presented in the current gains/losses.The main productive biological assets of the company are tea trees. For productive biological assets that achieve the predetermined production and operation objectives depreciation is made with the straight-line method. The useful life is determined as the remaining life of land use after deducting the immature period of tea trees (5 years) with a residual value rate of 5.00%. After deducting residual value from the estimated useful life of biological assets the depreciation rate is determined as follows: the company shall review the useful life estimated net residual value and depreciation method of productive biological assets at least at the end of the year. Any changes shall be treated as changes in accounting estimates.The difference between the disposal income from the sale inventory loss death or damage of productive biological assets after deducting their book value and related taxes and fees is recognized in gains and losses in current period. (3) Treatment of impairment of biological assets If the net realizable value of consumable biological assets is lower than their book value a impairment provision of biological assets shall be made in terms of the difference between the net realizable value and the book value and shall be booked into gains and losses in current period. If the factors affecting the impairment of consumable biological assets have disappeared the write-down amount should be restored and reversed within the original impairment provision and the reversed amount should be recognized in gains and losses in current period.The method for impairment of productive biological assets can be found in Note III. 24 of the auditor’s report.No impairment provision is made for public welfare biological assets. 28. Oil and gas assets 29. Intangible assets (1) Service life and its determination basis estimated situation amortization method or review procedure The intangible assets of the company include land use rights forest use rights trademark use rights store operation rights software use rights patents and others.Intangible assets are initially measured at cost and analyzed for their useful life upon acquisition. For intangible assets with a limited useful life the amortization method that reflects the expected realization of economic benefits related to the asset shall be adopted from the time when the intangible asset is available for use and shall be amortized within the expected useful life; If the expected implementation method cannot be reliably determined the straight-line method shall be used for amortization; Intangible assets with 135深圳市深粮控股股份有限公司2024年年度报告全文 uncertain useful lives are not amortized.The amortization method for intangible assets with limited service life is as follows: Estimation of the service life of intangible assets with limited service life Item Useful life Basis Amortizationmethod Note Land use right Amortized the actual rest of life after certificate of Certificate of land use Straight-line land use right obtained right method Forest tree use right Service life arranged Protocol agreement Straight-line method Trademark use 10 years Actual situation of the Straight-line right Company method Shop management Service life arranged Protocol agreement Straight-line right method Software use right 5-8 years Protocol agreement Straight-line method Patents and others 20 years Actual situation of the Straight-line Company method At the end of each fiscal year the company reviews the useful life and amortization method of intangible assets with limited useful lives. If there are differences from previous estimates the original estimates will be adjusted and treated as changes in accounting estimates.If it is expected that a certain intangible asset will no longer bring future economic benefits to the enterprise on the balance sheet date the book value of the intangible asset shall be fully transferred to the gains and profits of current period.The impairment method for intangible assets can be found in Note III.24 of the auditor’s report. (2) The collection scope and related accounting treatment methods of R&D expenditure The R&D expenses of the company are directly related to our R&D activities including employee salaries direct investment expenses depreciation expenses and long-term deferred expenses design expenses equipment debugging expenses intangible asset amortization expenses and other expenses. The salaries of R&D personnel are allocated to R&D expenses based on project working hours. The sharing of equipment production lines and venues between R&D activities and other production and operation activities is allocated as R&D expenses based on the proportion of working hours and area.The company distinguishes the expenses for internal R&D projects into research stage expenses and development stage expenses.The expenses incurred during the research phase are recognized in the gains and profits of current period when incurred.Expenditures during the development phase can only be capitalized if they meet the following conditions: completing the intangible asset to make it technically feasible for use or sale; Has the intention to complete the intangible asset and use or sell it; The ways in which intangible assets generate economic benefits including the ability to prove that the products produced with the intangible asset or the intangible asset are marketable and the ability to prove its usefulness if the intangible asset will be used internally; Have sufficient technical financial and other resources to support the development of the intangible asset and the ability to use or sell the intangible asset; The expenses attributable to the development stage of the intangible asset can be reliably measured. Development expenses that do not meet the above conditions are recognized in the gains and profits of current period.After meeting the above conditions and conducting technical and economic feasibility studies the company's R&D project enters the development stage after being approved.The capitalized expenses during the development stage are listed as development expenses on the balance sheet and are converted into intangible assets from the date the project reaches its intended use. 136深圳市深粮控股股份有限公司2024年年度报告全文 30. Impairment of long-term assets The impairment of assets such as long-term equity investments in subsidiaries associated enterprises and joint ventures investment real estate fixed assets construction in progress productive biological assets measured with cost models right-of-use assets intangible assets and goodwill (excluding inventory deferred income tax assets and financial assets) shall be determined with the following method: On the balance sheet date it is determined whether there are any signs of possible impairment of assets. If there are signs of impairment the company will estimate its recoverable amount and conduct impairment testing. Impairment tests are conducted annually for goodwill intangible assets with uncertain useful lives and intangible assets that have not yet reached a usable state regardless of whether there are signs of impairment resulting from business mergers.The recoverable amount is determined based on the higher of the net amount after deducting disposal expenses from the fair value of the asset and the present value of the expected future cash flows of the asset. The company estimates its recoverable amount based on individual assets; If it is difficult to estimate the recoverable amount of a single asset the recoverable amount of the asset group shall be determined based on the asset group to which the asset belongs. The recognition of an asset group is based on whether the main cash inflows generated by the asset group are independent of the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value the company will write down its book value to the recoverable amount and the written down amount will be recognized in the gains and profits of current period while making corresponding provisions for asset impairment.As for the impairment test of goodwill the book value of goodwill formed by enterprise merger shall be allocated to the relevant asset group in a reasonable manner from the date of purchase; If it is difficult to allocate to the relevant asset groups allocate it to the relevant asset group portfolio. The relevant asset groups or asset group portfolio refer to asset groups or asset group portfolio that can benefit from the synergistic effects of enterprise mergers and are not larger than the reporting branches determined by the company.When conducting impairment testing if there are signs of impairment in asset groups or asset group portfolios related to goodwill the first step is to conduct impairment testing on asset groups or asset group portfolio that do not include goodwill calculate the recoverable amount and recognize the corresponding impairment losses. Then conduct impairment tests on asset groups or asset group combinations containing goodwill and compare their book value with their recoverable amount. If the recoverable amount is lower than the book value recognize impairment losses on goodwill.Once asset impairment losses are recognized they will not be reversed in future accounting periods. 31. Long term deferred expenses The long-term deferred expenses incurred by the company are valued at actual cost and amortized on an average over the expected benefit period. For long-term deferred expenses that cannot benefit future accounting periods their amortized value is fully recognized in the gains and profits of current period. 32. Contract liabilities 33. Employee compensation (1) Accounting treatment methods for short-term compensation During the accounting period when the employees provider service to the company the actual employee wages bonuses medical insurance premiums work-related injury insurance premiums maternity insurance premiums and housing provident fund paid to 137深圳市深粮控股股份有限公司2024年年度报告全文 employees according to prescribed standards and proportions are recognized as liabilities and included in the gains and profits of current period or related asset costs. (2) Accounting treatment methods for post employment benefits The post employment welfare plan includes a defined contribution plan and a defined benefit plan. In the defined contribution plan the company no longer bears further payment obligations after paying fixed fees to an independent fund; A defined benefit plan refers to a post employment welfare plan other than a defined contribution plan.Defined contribution plans Include basic pension insurance unemployment insurance and enterprise annuity plans.During the accounting period when employees provide services the amount of contributions calculated based on the defined contribution plan is recognized as liability and included in the gains or losses of current period or related asset costs.Defined benefit plans For defined benefit plans the actuarial valuation is conducted by an independent actuary on the annual balance sheet date and the cost of providing benefits is determined with the expected cumulative benefit unit method. The employee compensation cost resulting from the defined benefit plan set by the company includes the following components: * Service costs including current service costs past service costs and settlement gains or losses. Among them the current service cost refers to the increase in the present value of obligations of the defined benefit plan caused by the provision of services by employees in the current period; The past service cost refers to the increase or decrease in the present value of the defined benefit plan obligations related to employee services in the previous period caused by the modification of the defined benefit plan.* The net interest on net liabilities or net assets of a defined benefit plan including interest income on assets of defined benefit plan interest expenses on obligations of defined benefit plan and interest affected by asset cap.* The changes resulting from remeasuring the net liabilities or net assets of the defined benefit plan.Unless other accounting standards require or allow employee welfare costs to be included in asset costs the company will include items * and* in the gains and profits of current period; The* is included in other comprehensive income and will not be reversed to profit or loss in subsequent accounting periods. When the original defined benefit plan is terminated all the portion originally included in other comprehensive income will be carried over to undistributed profits within the scope of equity. (3) Accounting treatment methods for termination benefits If the company provides termination benefits to employees the employee compensation liability arising from termination benefits shall be recognized and included in the gains and profits of current period as soon as possible when the company cannot unilaterally withdraw the termination benefits provided due to the termination of labor relations plan or layoff proposal; When the company confirms the costs or expenses related to restructuring involving payment of termination benefits.For those who implement an internal retirement plan for employees economic compensation before the official retirement date is considered as termination benefits. During the period from the date the employee stops providing services to the normal retirement date the salary and social insurance premiums to be paid to the retired employee shall be included in the current profit and loss in a lump sum. Economic compensation after the official retirement date (such as normal pension) shall be treated as post employment benefits. 138深圳市深粮控股股份有限公司2024年年度报告全文 (4) Accounting treatment method for other long-term employee benefits Other long-term employee benefits provided by the company to employees that meet the conditions for defined contribution plan shall be handled in accordance with the relevant provisions on setting up a defined contribution plan mentioned above. Those which meet conditions for defined benefit plan shall be treated in accordance with the relevant provisions on the set benefit plan mentioned above. However “changes arising from remeasuring the net liabilities or net assets of the set benefit plan” in the relevant employee compensation shall be included in the current profit and loss or related asset cost. 34. Accrual liability The Company will recognize the obligations related to contingencies as expected liabilities when they meet the following conditions: (1) The responsibility is a current responsibility undertaken by the Company; (2) Fulfilling of the responsibility may lead to financial benefit outflow; (3) The responsibility can be measured reliably for its value. Accrual liabilities are initially measured based on the best estimate of the expenses required to fulfill current obligations taking into account factors such as risk uncertainty and time value of money related to contingencies. If the time value of currency has a significant impact the best estimate is determined by discounting the relevant future cash outflows. The company reviews the book value of estimated liabilities on the balance sheet date and adjusts the book value to reflect the current best estimate.If all or part of the expenses required to settle the confirmed accrual liabilities are expected to be compensated by a third party or other parties the compensation amount can only be separately recognized as an asset when it is basically certain that it will be received. The confirmed compensation amount does not exceed the book value of the recognized liability. 35.Share-based payment 36. Other financial instrument of preferred stocks and perpetual bond 37. Revenue Disclosure of accounting policies adopted for revenue recognition and measurement by business type (1) General principles The company recognizes revenue when the customer acquires control of the relevant goods or services in accordance with the contractual obligations.If the contract contains two or more performance obligations the company shall on the commencement date of the contract allocate the transaction price to each individual performance obligation based on the relative proportion of the individual selling price of the goods or services promised by each individual performance obligation and measure revenue based on the transaction price allocated to each individual performance obligation.If one of the following conditions is met it is to fulfill the performance obligation within a certain period of time; Otherwise it is to fulfil the performance obligation at a certain point of time: * The customer obtains and consumes the economic benefits brought by the company's performance at the same time as the company fulfills its obligations. 139深圳市深粮控股股份有限公司2024年年度报告全文 * Customers are able to control the goods under construction during the fulfillment process of the company.* The goods produced by the company during the performance process have irreplaceable uses and the company has the right to collect payments for the cumulative completed performance portion throughout the entire contract period.For performance obligations performed during a certain period of time the company recognizes revenue based on the progress of performance during that period. In case the progress of performance cannot be reasonably determined when the costs already incurred by the company are expected to be compensated revenue shall be recognized in terms of the amount of costs already incurred until the progress of performance can be reasonably determined.For performance obligations performed at a certain point of time the company recognizes revenue at the point when the customer obtains control of the relevant goods or services. When determining whether a customer has acquired control over goods or services the company will consider the following signs: * The company has the current payment right for the goods or services which means that the customer has a current payment obligation for the goods.* The company has transferred the legal ownership of the product to the customer that is the customer already has legal ownership of the product.* The company has transferred the physical ownership of the product to the customer which means the customer has already taken possession of the product.* The company has transferred the main risks and rewards of ownership of the product to the customer that is the customer has acquired the main risks and rewards of ownership of the product.* The customer has accepted the product or service.* Other signs indicating that the customer has obtained control over the product. (2) Specific methods * Grain and oil trade and processing business The revenue from sales of goods is recognized after the goods sold domestically have been delivered and meet the relevant terms and conditions stipulated in the contract; The revenue of export sales is recognized after the goods have been shipped and declared and meet the relevant terms and conditions stipulated in the contract.* Grain and oil storage logistics and services Dynamic grain and oil reserves and rotation services: recognize income when relevant labor activities occur. Specifically the income from grain and oil reserves is calculated and recognized monthly based on the actual amount of grain and oil reserves and the reserve prices specified in the Shenzhen Municipal Government Grain Reserve Cost Contract Operating Regulations and the Shenzhen Municipal Edible Vegetable Oil Government Reserve Cost Contract Operating Regulations.The warehousing logistics and transshipment business including services such as warehousing loading onto ships direct pick-up fumigation and transferring goods between warehouses is recognized by calculating according to the charging time and method stipulated in the contract or agreement.* Food beverage and tea processing 140深圳市深粮控股股份有限公司2024年年度报告全文 The company shall recognize revenue when it has delivered the products to the buyers as agreed in the contract and obtained the buyers' receipt confirmation the buyers have obtained the control of the products the payment has been received or the payment voucher has been obtained and the relevant economic benefits are highly likely to flow in.* Leasing business For property leasing services the realization of revenue shall be recognized on the date when the lessee is due to pay the rent as specified in the transaction contract or agreement.* Other businesses The revenue from property management services shall be recognized when the relevant labor services occur and the payment is received simultaneously or the voucher for receiving the payment is obtained.The revenue of other businesses shall be measured and recognized according to the charging time and method stipulated in the contract or agreement.In case similar businesses adopt different business models different revenue recognition methods and measurement methods will be involved. 38. Contract cost The contract cost includes the incremental cost incurred to obtain the contract and the contract performance cost.The incremental cost incurred to obtain the contract refers to the cost that the company would not have incurred without obtaining the contract (such as sales commission). The cost which is expected to be recovered will be recognized by the company as a contract acquisition cost and as an asset. Except for the expected incremental costs that can be recovered other expenses incurred by the company to obtain the contract shall be booked in the gains and profits of current period.If the cost incurred in fulfilling a contract does not fall within the scope of accounting standards for other enterprises such as inventory and meets the following conditions simultaneously the company recognizes it as a contract performance cost as an asset: * The cost is directly related to a current or expected contract including direct labor direct materials manufacturing expenses (or similar expenses) costs clearly borne by the customer and other costs incurred solely due to the contract; * This cost increases the resources that the company will use in the future to fulfill its contractual obligations; * The cost is expected to be recovered.The assets recognized for contract acquisition costs and the assets recognized for contract performance costs (hereinafter referred to as “assets related to contract costs”) are amortized on the same basis as the recognition of goods or services revenue related to the assets and are booked in the gains and profits of current period. If the amortization period does not exceed one year it shall be recognized in the current profit and loss when it occurs.In case the book value of assets related to contract costs exceeds the difference between the following two items the company makes impairment provisions for the excess and recognizes it as an asset impairment loss: * The expected remaining consideration that the company can obtain for the transfer of goods or services related to the asset; * The estimated cost to be incurred for the transfer of the relevant goods or services. 141深圳市深粮控股股份有限公司2024年年度报告全文 39. Government grant Government grant is recognized when they meet the conditions attached to government grants and can be received.Government grant as monetary assets shall be measured at the amount received or receivable. The government grants as non- monetary assets shall be measured at fair value; If the fair value cannot be reliably obtained it shall be measured at a nominal amount of 1 yuan.Asset-related government subsidies refer to government grants obtained by the company for the purchase construction or other formation of long-term assets; Others are income-related government grants.For those whose targets are not clearly specified in government documents and form long-term assets the government grant corresponding to the asset value shall be regarded as asset-related government grants and the remaining part shall be regarded as income-related government grants; In case it is difficult to make distinguishing the government grants as a whole shall be regarded as income-related government grants.Asset-related government grants are recognized as deferred income and booked in gains and losses in a reasonable and systematic manner over the useful life of the relevant assets. Income-related government subsidies which are used to compensate related costs or losses that have already occurred shall be included in the gains and profits of current period; The income-related government subsidies which are used to compensate related costs or losses in future periods shall be recognized in deferred income and recognized in gains and losses of current period during the recognition period of related costs or losses. Government grants measured at nominal amounts are directly recognized in the gains and profits of current period. The company adopts a consistent approach for handling the same or similar government subsidy businesses.Government grants related to daily activities are recognized in other income based on the essence of economic transactions.Government subsidies unrelated to daily activities are included in non- operating income.When recognized government subsidies need to be returned in case the book value of the relevant assets is offset at the initial recognition the book value of the assets shall be adjusted; If there is a balance of related deferred income it shall offset the book balance of related deferred income and the excess shall be recognized in the gains and profits of current period; In other situations it shall be directly included in the gains and profits of current period.For the policy preferential loans and interest subsidies obtained by the company in case the finance department allocates interest subsidy to the lending bank the company will use the actual received loan amount as the book value of the loan and calculate the relevant loan costs based on the loan principal and the policy preferential interest rate in case the finance department directly allocates interest subsidy to the company the company will offset the relevant borrowing costs with the corresponding interest subsidy. 40. Deferred income tax assets/deferred income tax liabilities Income tax includes current income tax and deferred income tax. Except for adjustments to goodwill arising from enterprise merge or deferred income tax related to transactions or events directly recognized in shareholders’ equity they are all recognized as income tax expenses in gains and losses of current period.The deferred income tax is recognized with the balance sheet liability method and in terms of the temporary difference between the book value of assets and liabilities on the balance sheet date and the tax basis.All taxable temporary differences are recognized as related deferred income tax liabilities unless the taxable temporary differences arise in the following transactions: 142深圳市深粮控股股份有限公司2024年年度报告全文 (1) The initial recognition of goodwill or the initial recognition of assets or liabilities arising from transactions with the following characteristics: the transaction is not a business merger and does not affect accounting profits or taxable income at the time of the transaction (except for individual transactions where the initially recognized assets and liabilities result in equal taxable temporary differences and deductible temporary differences); (2) For taxable temporary differences related to investments in subsidiaries joint ventures and associated enterprises the timing of the reversal of such temporary differences can be controlled and it is likely that they will not be reversed in the foreseeable future.For deductible temporary differences deductible losses that can be carried forward to future years and tax deductions the company recognizes deferred tax assets arising from them to the extent of future taxable income that is likely to be obtained for offsetting deductible temporary differences deductible losses and tax deductions unless the deductible temporary differences arise in the following transactions: (1) This transaction is not a enterprise merger and it does not affect accounting profits or taxable income at the time of transaction (except for individual transactions where initially recognized assets and liabilities result in equal taxable temporary differences and deductible temporary differences); (2) For deductible temporary differences related to investments in subsidiaries joint ventures and associated enterprises if the following conditions are met simultaneously the corresponding deferred income tax assets shall be recognized: temporary differences are likely to be reversed in the foreseeable future and taxable income that can be used to offset deductible temporary differences is likely to be obtained in the future.On the balance sheet date the company measures deferred income tax assets and liabilities at the applicable tax rate during the expected period of asset recovery or liability settlement and reflects the income tax impact of the expected method of asset recovery or liability settlement on the balance sheet date.On the balance sheet date the company reviews the book value of deferred income tax assets. If it is likely that sufficient taxable income will not be obtained in the future period to offset the benefits of deferred income tax assets the book value of deferred income tax assets shall be written down. When it is highly possible to obtain sufficient taxable income the written down amount shall be reversed.On the balance sheet date deferred income tax assets and deferred income tax liabilities are presented at the net amount after offsetting when they simultaneously meet the following conditions: (1) The taxpayer within the company has the legal right to settle current income tax assets and current income tax liabilities on a net basis; (2) Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax administration department on the same taxpayer within the company. 41. Leasing (1) The company as lessee On the commencement date of the lease term the Company recognizes the right-of-use assets and lease liabilities for all leases except for simplified short-term lease and low value asset lease.The accounting policies for the right-of-use assets can be found in Note III. 32 of the auditor’s report.The initial measurement of lease liabilities is based on the present value of lease payments that have not been paid on the start date of 143深圳市深粮控股股份有限公司2024年年度报告全文 the lease term calculated using the implicit interest rate of the lease. If the implicit interest rate of the lease cannot be determined the incremental borrowing rate is used as the discount rate. The lease payment amount includes fixed payment amount and substantial fixed payment amount. If there is a lease incentive the relevant amount of the lease incentive shall be deducted; Variable lease payments depending on index or ratio; The exercise price of the purchase option provided that the lessee reasonably determines that the option will be exercised; The amount to be paid for exercising the option to terminate the lease provided that the lease term reflects that the lessee will exercise the option to terminate the lease; And the expected amount to be paid based on the residual value of the guarantee provided by the lessee. Subsequently the interest expense of the lease liability for each period of the lease term shall be calculated at a fixed periodic interest rate and included in the current profit and loss. Variable lease payments that are not included in the measurement of lease liabilities are recognized in the gains and profits of current period when they are actually incurred.Short term leasing Short term lease refers to a lease with a lease term not exceeding 12 months from the start date of the lease term excluding leases with purchase options.The company will recognize the lease payments for short-term leases in the relevant asset costs or current profit and loss with the straight-line method during each period of the lease term.For short-term leasing the company adopts the simplified treatment method mentioned above for the items that meet the short-term leasing conditions in the following asset types according to the category of leased assets.Low value asset leasing The low value asset leasing refers to leasing with lower value when a single leased asset is a brand new asset.The company will record the lease payments for low value asset leases in the relevant asset costs or current profit and loss with the straight-line method during each period of the lease term.For low value asset leasing the company chooses to adopt the simplified treatment method mentioned above based on the specific situation of each lease.Lease change If there is a change in lease and the following conditions are met simultaneously the company will treat the lease change as a separate lease for accounting treatment: * The lease change expands the lease scope by adding the right to use one or more leased assets; * The increased consideration is equivalent to the individual price for the expansion of the lease scope adjusted according to the situation of the contract.If the lease change is not accounted for as a separate lease on the effective date of the lease change the Company shall reallocate the consideration of the contract after the change redetermine the lease term and remeasure the lease liability based on the present value of the lease payment amount after the change and the revised discount rate.If the lease change results in a reduction in the lease scope or lease term the company shall adjust the book value of the right-of-use assets accordingly and record the relevant gains or losses from partial or complete termination of the lease in the gains and profits of current period.If other lease changes result in the remeasurement of lease liabilities the Company shall adjust the book value of the right of use assets accordingly. 144深圳市深粮控股股份有限公司2024年年度报告全文 (2) The company as a lessor When the company acts as the lessor leases that have substantially transferred all risks and rewards related to asset ownership are recognized as financing leases while leases other than financing leases are recognized as operating leases.Finance lease In financial leasing at the beginning of the lease term the company uses the net lease investment as the book value of the receivable financing lease payments. The net lease investment is the sum of the unguaranteed residual value and the present value of the lease payments that have not yet been received on the start date of the lease term discounted at the implicit interest rate of the lease. the company as the lessor calculates and recognizes interest income for each period of the lease term at a fixed periodic interest rate.The variable lease payments obtained by the company as the lessor which are not included in the net lease investment measurement are recognized in the gains and profits of current period when actually incurred.The derecognition and impairment of receivable financing lease payments shall be accounted for in accordance with the provisions of Accounting Standards for Enterprises No. 22- Recognition and Measurement of Financial Instruments and Accounting Standards for Enterprises No. 23- Transfer of Financial Assets.Operating lease The rent of operating leases is recognized in the gains and profits of current period using the straight-line method for each period during the lease term. The initial direct expenses related to operating leases shall be capitalized amortized over the lease term on the same basis as rental income recognition and recognized in the gains and profits of current period in installments. The variable lease payments related to operating leases that are not included in the lease income are recognized in the gains and profits of current period when actually incurred.Lease change If there is a change in the operating lease the company will treat it as a new lease for accounting treatment from the effective date of the change. The prepaid or receivable lease payments related to the lease before the change are considered as the new lease payments.If there is a change in financing lease and the following conditions are met simultaneously the company will treat the change as a separate lease for accounting treatment: * The change expands the lease scope by adding the right to use one or more leased assets; * The increased consideration is equivalent to the individual price for the expansion of the lease scope adjusted according to the situation of the contract.If there is a change in financing lease that has not been accounted for as a separate lease the Company will treat the changed lease as follows: * If the change takes effect on the lease commencement date the lease will be classified as an operating lease. The Company will treat it as a new lease from the effective date of the lease change and use the net lease investment before the effective date of the lease change as the book value of the leased asset; * If the change takes effect on the commencement date of the lease the lease will be classified as a financing lease and the company will conduct accounting treatment in accordance with the provisions of the Accounting Standards for Enterprises No. 22- Recognition and Measurement of Financial Instruments regarding the modification or renegotiation of contracts. 145深圳市深粮控股股份有限公司2024年年度报告全文 42. Other important accounting policy and estimation 43.Changes of important accounting policy and estimation (1) Changes of important accounting policies □Applicable ?Not applicable (2) Changes of important accounting estimation □Applicable□Not applicable (3) Implementation of new accounting standards adjustment for the first time starting from 2023 and implementation of relevant financial statement items at the beginning of the year for the first time □Applicable ?Not applicable 44.Others VI. Tax 1. Type of tax and rate for main applicable tax Taxes Basis Rate Taxable value added (The taxable amount is calculated by multiplying the taxable sales amount by the applicable VAT 13.00% 9.00%6.00%5.00%3.00% tax rate and deducting the input tax allowed for deduction in the current period) Consumption tax Actual paid turnover tax 7.00%5.00% Urban maintenance and construction tax Actual paid turnover tax 3.00% Enterprise income tax Taxable income 25.00% For ad valorem taxes 1.2% of the remaining value after deducting 20.00% from the original value of the property Property tax 1.20%12.00% shall be calculated and paid; For levy based on rent calculated and paid at 12.00% of rental income When real estate property rights are transferred a one-time payment shall be Deed tax 3.00%-5.00% made to the property transferee at the agreed contract price Rate of income tax for different taxpaying body: Taxpaying body Rate of income tax Shenzhen Cereals Holdings Co. Ltd. 25.00% 25.00% tax exemption for some Shenzhen Cereals Group Co. Ltd (hereinafter referred to as “SZCG”) businessesShenzhen Hualian Grain and Oil Trading Co. Ltd. (hereinafter referred to as “Hualian Cereals 25.00%and Oil”) 146深圳市深粮控股股份有限公司2024年年度报告全文 Dongguan Shenliang Hualian Cereals and Oil Trading Co. Ltd (hereinafter referred to as 25.00% “Dongguan Hualian”) Shenzhen Shenliang Hongjun Catering Management Co. Ltd. (hereinafter referred to as 25.00% “Shenliang Hongjun”) 25.00% tax exemption for some Shenzhen Flour Co. Ltd (hereinafter referred to as “Shenzhen Flour”) businessesShenliang Quality Inspection Co. Ltd. (hereinafter referred to as “Shenliang Quality 20.00%Inspection”) Hainan Shenliang Oil & Food Co. Ltd. (hereinafter referred to as “Hainan Oil & Food”) 20.00% Shenzhen Shenliang Doximi Business Co. Ltd. (hereinafter referred to as “Doximi”) 25.00%Shenzhen Shenliang Big Kitchen Food Supply Chain Co. Ltd (hereinafter referred to as “Big 25.00%Kitchen”) Shenzhen Shenliang Storage (Yingkou) Co. Ltd (hereinafter referred to as “Yingkou Storage”) 25.00%Shenzhen Shenliang Cold Chain Logistics Co. Ltd. (hereinafter referred to as “Cold Chain 15.00%Logistics”)Shenzhen Shenliang Property Development Co. Ltd. (hereinafter referred to as “Shenliang 25.00%Property Development”)Shenzhen Shenliang Property Management Co. Ltd. (hereinafter referred to as “Shenliang 20.00%Property Management”) Dongguan Shenliang Logistics Co. Ltd. (hereinafter referred to as “Dongguan Logistics”) 25.00% Dongguan International Food Industrial Park Development Co. Ltd. (hereinafter referred to as 25.00% “International Food”)Dongguan Shenliang Oil & Food Trade Co. Ltd. (hereinafter referred to as “Dongguan Oil & 25.00%Food”) Shuangyashan Shenliang Cereals Base Co. Ltd. (hereinafter referred to as “Shuangyashan”) 25.00%Shenzhen Shenbao Huacheng Technology Co. Ltd. (hereinafter referred to as “Shenbao 15.00%Huacheng”)Wuyuan Ju Fang Yong Tea Industry Co. Ltd (hereinafter referred to as “Wuyuan Ju Fang 15.00%Yong”)Shenzhen Shenshenbao Investment Co. Ltd (hereinafter referred to as “Shenshenbao 25.00%Investment”) Shenzhen Shenshenbao Tea Culture Commercial Management Co. Ltd. (hereinafter referred 25.00% to as “Shenbao Tea Culture”) Hangzhou Fuhaitang Catering Management Chain Co. Ltd. (hereinafter referred to as 25.00% “Fuhaitang Catering”)Hangzhou Fuhaitang Tea Ecology Technology Co. Ltd (hereinafter referred to as “Fuhaitang 25.00%Tea Ecology”) Mount Wuyi Shenbao Rock Tea Co. Ltd. (hereinafter referred to as “Shenbao Rock Tea”) 25.00% Yunnan Shenbao Pu’er Tea Supply Chain Management Co. Ltd. (hereinafter referred to as 25.00% “Pu’er Tea Supply Chain”) Shenzhen Shenliang Food Co. Ltd. (hereinafter referred to as “Shenzhen Shenliang Food”) 25.00% Huizhou Shenliang Food Co. Ltd. (hereinafter referred to as “Huizhou Shenliang Food”) 20.00% Huizhou Shenbao Technology Co. Ltd. (hereinafter referred to as “Huizhou Shenbao”) 25.00%Shenliang Hongli Grain and Oil (Shenzhen) Co. Ltd (hereinafter referred to as “Shenliang 25.00%Hongli”) Xingye Food Co. Ltd. (hereinafter referred to as “Xingye Food”) 16.50% 147深圳市深粮控股股份有限公司2024年年度报告全文 2. Preferential taxation 1. VAT discounts and approvalAccording to the “Notice of the Ministry of Finance and the State Administration of Taxation on the Issues Concerning the VATCollection and Exemption of Grain Enterprises (CSZ [1999] No. 198)” and “Shenzhen Tax Service State Taxation Administrationand Shenzhen Finance Bureau SGSF (SCF [1999] No.428)” confirming that SZCG the Company’s subsidiary and its subsidiaries are state-owned grain purchase and sale enterprises that undertake grain collection and storage tasks for Shenzhen the grain sold is subject to tax-free declaration by rule and enjoys the exemption from VAT. In addition according to the stipulation of the“Announcement of State Administration of Taxation on Relevant Management Matters After Clarifying the Cancellation of theApproval of Some VAT Preferential Policies” (SAT Announcement 2015 No. 38) the approval for exemption from VAT and the involved tax review and approval procedures for the state-owned grain enterprises that undertake grain collection and storage tasks other grain enterprises that operate tax-free projects and enterprises that have edible vegetable oil sales business for government reserves are canceled and changed to record management. The taxpayer does not change the content of the record materials during the period of tax exemption can be put on a one-time record. In December 2013 SZCG obtained the notice of the VAT preferential record (SGSFJBM [2013] No.2956) from Shenzhen Futian State Administration of Taxation. In the case of no change in policy this limited filing period started on January 1st 2014.The VAT input tax amount of the preferential item was separately accounted for and the input VAT calculation method cannot be changed within 36 months after the selection. As of December 31 2024 the tax exemption policy has been in effect since its filing in 2014 and the company’s VAT input tax has not changed since it was accounted for separately in 2014 so the company continues to enjoy the tax preference. 2. Stamp duty house property tax and urban land use tax preferences According to the stipulations of the Announcement of the Ministry of Finance and the State Administration of Taxation onContinuing the Implementation of Tax Preferential Policies for Some National Reserve Commodity Reserves([2022]No.8)” and documents of Guangdong Province Department of Finance Guangdong Provincial Taxation Bureau of the State Administration of Taxation and Guangdong Provincial Food and Material Reserve Bureau (YCSH [2020]No.2 confirming that the fund account book of SZCG the Company’s subsidiary and its direct depots is exempt from stamp duty confirming that the written purchase and sale contracts of SZCG in the process of undertaking the commodity reserve business are exempt from stamp duty and confirming that SZCG’s house property and land used for the commodity reserve business are exempt from house property tax and urban land use tax. The execution time limit for this tax preference policy is from January 1 2022 to December 31 2024. 3. Enterprise income tax (1) On May 27 2021 the Ggeneral Aadministration of Taxation Ministry of Finance issued the Notice on the Extension of Preferential Policies of Enterprise Income Tax of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Shenzhen the enterprise income tax of qualified enterprises located in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone is levied at the rate of 15.00% and the Notice to be implemented from January 1 2021 to December 31 2025.The Company's subsidiary cold chain logistics is registered in Shenzhen Qianhai Cooperation Zone which is eligible for preferential tax conditions. According to relevant policies of the cooperation zone its income tax will enjoy a preferential tax of 15.00% (2) On December 23 2021 Shenbao Huacheng a subsidiary of the Company obtained the High-tech Enterprise Certificate (Certificate No.: GR202144205394) jointly issued by the Shenzhen Science and Technology Bureau the Shenzhen Finance Bureau and the Shenzhen Tax Service State Taxation Administration which is valid for three years. According to the relevant preferential policies of the state for high-tech enterprises the qualified high-tech enterprises will pay corporate income tax at a reduced income tax rate of 15.00% within three years from the year of identification. Shenbao Huacheng will enjoy the preferential tax policy from 2021 to 2024. 148深圳市深粮控股股份有限公司2024年年度报告全文 (3) On November 3 2021 Wuyuan Ju Fang Yong a subsidiary of the Company obtained the High-tech Enterprise Certificate (Certificate No.: GR202136000731) jointly issued by the Science and Technology Department of Jiangxi Province the Finance Department of Jiangxi Province and the Jiangxi Provincial Tax Service State Taxation Administration which is valid for three years.According to the relevant preferential policies of the state for high-tech enterprises qualified high-tech enterprises will pay corporate income tax at a reduced income tax rate of 15.00% within three years from the year of identification. Wuyuan Ju Fang Yong will enjoy the preferential tax policy from 2021 to 2024. (4) According to the Notice of the Ministry of Finance and the State Taxation Administration on the Treatment of Corporate Income Tax Treatment of Fiscal Funds for Special Purposes (CS[2009]No.87) the governmental service incomes obtained by SZCG the Company’s subsidiary and its subordinate companies by carrying out government grain reserves business are fiscal funds for special purposes those that meet the requirements can be regarded as non-taxable incomes and deducted from the total income when calculating the taxable income. Expenses arising from the use of the above non-taxable income for expenditure shall not be deducted from the calculation of taxable income; for assets formed from expenditure the calculated depreciation and amortization shall not be deducted from the calculation of taxable income. (5) Shenzhen Flour a subsidiary of the Company is a flour primary processing enterprise according to the stipulations of the“Notice on Issuing the Scope (Trial) of Primary Processing of Agricultural Products Applicable to the Corporate Income TaxPreferential Policy (CS[2008]No.149)” and the “Supplementary Notice on the Scope of Primary Processing of Agricultural ProductsApplicable to the Corporate Income Tax Preferential Policy of the Ministry of Finance and the State Administration of Taxation” (CS[2011]No.26) the wheat primary processing is exempt from income tax. (6) According to the Announcement of the Ministry of Finance and the State Taxation Administration on the Implementation of Preferential Income Tax Policies for Small and Micro Enterprises ([2022]No.13) from January 1 2022 to December 31 2024 the part of the annual taxable income of small and low-profit enterprises not exceeding 1.00 million yuan shall be included in the taxable income at a reduced rate of 25.00% and the enterprise income tax shall be paid at a tax rate of 20.00%. The company’s subsidiary Hainan Grain and Oil Shenliang Property Shenliang Quality Inspection and Huizhou Shenliang are small profit enterprises and in line with the preferential tax conditions. 3. Other VII. Notes to main items of consolidated financial statements 1. Monetary funds In RMB Item Ending balance Opening balance Cash on hand 9442.96 11234.32 Cash in bank 164844740.19 238163848.68 Other monetary fund 3345108.08 2565704.28 Total 168199291.23 240740787.28 3949901.144356180.68 2.Tradable financial assets In RMB Item Ending balance Opening balance Financial assets measured at fair value 1122347.85 149深圳市深粮控股股份有限公司2024年年度报告全文 and with variation reckoned into current gains/losses Including: Equity investment instrument 1122347.85 Including: Total 1122347.85 Other explanation: 3.Derivative financial assets In RMB Item Ending balance Opening balance Other explanation: 4.Note receivable (1) By category In RMB Item Ending balance Opening balance Bank acceptance bill 2327160.00 113932.00 Total 2327160.00 113932.00 (2) Accrued bad debts reserve In RMB Ending balance Opening balance Category Book value Bad debts reserve Book Book value Bad debts reserve Book Amount Ratio Amount Accrued valueratio Amount Ratio Amount Accrued value ratio Including: Including: If the bad debts reserve of account receivable is made on the basis of the general model of expected credit losses: □Applicable□Not applicable (3) Bad debts reserve accrual collected or reversal in the period Bad debts reserve accrual in the period: In RMB Amount changed in the period Category Opening balance Accrual Collected or Written-off Other Ending balancereversal Including major amount bad debts reserve that collected or reversal in the period: □ Applicable□Not applicable (4) Notes receivable already pledged by the Company at the end of the period 150深圳市深粮控股股份有限公司2024年年度报告全文 In RMB Item Amount pledged at period-end (5) Notes endorsed or discounted and undue on balance sheet date Item Ending derecognized amount Ending not derecognized amount (6) Note receivable charged off in the period Unit: RMB Item Amount charged off Including major note receivable charged off: Unit: RMB Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N) Explanation on note receivable charged off: 5.Account receivable (1) By aging In RMB Aging Ending book balance Beginning book balance Within 1 year(inclusive) 237689963.04 185011814.38 1-2 years 4395809.28 1411768.67 2-3 years 812823.91 732353.29 Over 3 years 95921013.66 95284580.37 3-4 years 664460.24 2124859.32 4-5 years 2096832.37 80685.16 Over 5 years 93159721.05 93079035.89 Total 338819609.89 282440516.71 (2) Accrued bad debts reserve In RMB Ending balance Opening balance Category Book balance Bad debts reserve Book balance Bad debts reserve Book value Book value Amount Ratio Amount Accru Accrual ratio Amount Ratio Amount al ratio Account receivable with bad debts 100008783.reserve 63 29.52% 99914189.399.91 7%94594.26 99603414.7 135.27% 99513955.799.91 8%89458.93 accrual on a single basis Including: Account receivable with bad debts 238810826.26 70.48% 3115854.61 2.63% 235694971.182837102. 650064.73%3098066.951.69% 179739035. reserve 05 accrual on portfolio 151深圳市深粮控股股份有限公司2024年年度报告全文 Including Portfoli o of sales 118311513. 34.92% 3115854.61 2.63% 115195659. 116066604.69 08 29 41.09% 3098066.95 2.67% 112968537. receivable 34 Object- specific 120499312. 35.56% 120499312. 66770497.757 57 1 23.64% 66770497.7 portfolio 1 Total 338819609. 100.00 103030043. 30.41 235789565. 282440516. 100.00 102612022. 36.33 179828493.89 % 98 % 91 71 % 73 % 98 Bad debts reserve accrual on single basis: 99914189.37 yuan In RMB Opening balance Ending balance Name Book balance Bad debtsreserve Book balance Bad debts reserve Accrual ratio Accrual causes Bad debts reserve accrual 99603414.71 99513955.78 100008783.63 99914189.37 99.91% Low possibility on single basis of recovery Total 99603414.71 99513955.78 100008783.63 99914189.37 Bad debts reserve accrual on portfolio: Portfolio of sales receivable In RMB Ending balance Name Book balance Bad debts reserve Accrual ratio Portfolio of sales receivable 118311513.69 3115854.61 2.63% Total 118311513.69 3115854.61 Explanation on the basis for determining portfolio: Bad debts reserve accrual on portfolio: object-specific portfolio In RMB Ending balance Name Book balance Bad debts reserve Accrual ratio Object-specific portfolio 120499312.57 Total 120499312.57 Explanation on the basis for determining portfolio: If the bad debts reserve of account receivable is made in accordance with the general model of expected credit losses: □ Applicable□Not applicable (3) Bad debts reserve accrued collected or reversal Bad debts reserve accrued in the period: In RMB Change in current period Category Opening balance Collected or Ending balanceAccrued reversal Charged off Other Bad debts reserve for accounts 102612022.73 586396.33 168375.08 103030043.98 receivable Total 102612022.73 586396.33 168375.08 103030043.98 Important bad debts reserve collected or reversal: In RMB Basis and rationality to Name Collected or reversal Reason for reversal Manner of reversal define the accrued ratio of original bad debts 152深圳市深粮控股股份有限公司2024年年度报告全文 reserve (4) Account receivable charged off in the period In RMB Item Amount charged off Including major account receivable charged off: In RMB Reason for charged Procedure of Resulted by related Enterprise Nature Amount charged off off charged off transaction (Y/N) Explanation on account receivable charged off: (5) Top 5 receivables and contract assets at ending balance by arrears party In RMB Ratio in total Ending balance of Name Ending balance of Ending balance of Ending balance of ending balance of bad debt reserve account receivable contract assets account receivable and impairmentand contract assets account receivableand contract assets reserve of contractassets First 116870897.62 34.49% 0.00 Second 15377080.00 4.54% 153770.80 Third 10455627.54 3.09% 10455627.54 Fourth 9396151.19 2.77% 93961.51 Fifth 6435350.10 1.90% 64353.50 Total 158535106.45 46.79% 10767713.35 6.Contract asset (1) Contract asset In RMB Ending balance Opening balance Item Book balance Bad debtsreserve Book value Book balance Bad debts reserve Book value (2) Amount and reasons for significant changes in book value during the reporting period In RMB Item Amount of change Reason for change (3) Accrued bad debts reserve In RMB Ending balance Opening balance Category Book value Bad debts reserve Book Book value Bad debts reserve Book Amount Ratio Amount Accrued valueratio Amount Ratio Amount Accrued value ratio Including: Including: 153深圳市深粮控股股份有限公司2024年年度报告全文 If the bad debts reserve of account receivable is made on the basis of the general model of expected credit losses: □Applicable□Not applicable (4) Bad debts reserve accrued collected or reversal In RMB Collected or reversal in Written-off in the Item Accrued in the period Reason the period period Important bad debts reserve collected or reversal: In RMB Basis and rationality to define the accrued ratio Enterprise Collected or reversal Reason for reversal Manner of reversal of original bad debts reserve Other explanation: (5) Contract assets charged off during the reporting period In RMB Item Amount charged off Including major contract assets charged off: In RMB Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N) Explanation on contract assets charged off: Other explanation: 7.Account receivable financing (1) Category of account receivable financing In RMB Item Ending balance Opening balance (2) Accrued bad debts reserve In RMB Ending balance Opening balance Category Book value Bad debts reserve Book Book value Bad debts reserve Book Amount Ratio Amount Accrued valueratio Amount Ratio Amount Accrued value ratio Including: Including: The bad debts reserve of account receivable is made on the basis of the general model of expected credit losses: In RMB Bad debts reserve Phase I Phase II Phase III Total 154深圳市深粮控股股份有限公司2024年年度报告全文 Expected credit losses Expected credit losses for the entire Expected credit losses for the entire over next 12 months duration (without credit impairment duration (with credit impairmentoccurred) occurred) Balance on Jan. 1 2024 in the period Classification basis and accrued ratio of bad debts reserve for each stage Explanation on significant changes in the book balance of accounts receivable financing with changes in impairment provision in the current period: (3) Bad debts reserve accrued collected or reversal In RMB Amount changed in the period Category Opening balance Collected or Ending balanceAccrued reversal Written-off Other Bad debts reserve Total Important bad debts reserve collected or reversal In RMB Basis and rationality to define the accrued ratio Enterprise Collected or reversal Reason for reversal Manner of reversal of original bad debts reserve Other explanation: (4) Account receivable financing already pledged by the Company at period-end In RMB Item Amount pledged at period-end (5) Account receivable financing endorsed or discounted and undue on balance sheet date In RMB Item Amount derecognized at period-end Amount not derecognized at period- end (6) Account receivable financing charged off in the period Unit: RMB Item Amount charged off Including major account receivable financing charged off: Unit: RMB Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N) Explanation on account receivable financing charged off: 155深圳市深粮控股股份有限公司2024年年度报告全文 (7) Changes of account receivable financing and change of fair value in the period (8) Other explanation 8.Other accounts receivable In RMB Item Ending balance Opening balance Other accounts receivable 19978436.61 29141966.16 Total 19978436.61 29141966.16 (1) Interest receivable 1)Category of interest receivable In RMB Item Ending balance Opening balance 2)Significant overdue interest In RMB Whether impairment has occurred Borrower Ending balance Overdue period Overdue reason and its judgment basis Other explanation: 3)Accrued bad debts reserve □Applicable□Not applicable 4)Bad debts reserve accrued collected or reversal Bad debts reserve accrued in the period: In RMB Amount changed in the period Category Opening balance Ending balance Accrued Collected orreversal Written-off Other Bad debts reserve Total Important bad debts reserve collected or reversal: In RMB Basis and rationality to Enterprise Collected or reversal Reason for reversal Manner of reversal define the accrued ratioof original bad debts reserve Other explanation: 156深圳市深粮控股股份有限公司2024年年度报告全文 5) Interest receivable charged off in the period Unit: RMB Item Amount charged off Including major interest receivable charged off: Unit: RMB Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N) Explanation on interest receivable charged off: Other explanations: (2) Dividend receivable 1)Category of dividend receivable In RMB Item (or investee) Ending balance Opening balance 2)Significant dividend receivable with aging over one year In RMB Whether impairment Item (or investee) Ending balance Aging Reason for not received has occurred and its judgment basis 3)Accrued bad debts reserve □Applicable□Not applicable 4)Bad debts reserve accrued collected or reversal In RMB Amount changed in the period Category Opening balance Collected or Ending balanceAccrued reversal Written-off Other Bad debts reserve Total Important bad debts reserve collected or reversal: In RMB Basis and rationality to define the accrued ratio Enterprise Collected or reversal Reason for reversal Manner of reversal of original bad debts reserve Other explanation: 5) Dividend receivable charged off in the period Unit: RMB 157深圳市深粮控股股份有限公司2024年年度报告全文 Item Amount charged off Including major dividend receivable charged off: Unit: RMB Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N) Explanation on dividend receivable charged off: Other explanation: (3) Other account receivable 1)By nature In RMB Nature Ending book balance Beginning book balance Deposit and margin 16410289.56 10671175.15 Other intercourse funds 105477322.66 121023644.56 Total 121887612.22 131694819.71 2)By aging In RMB Aging Ending book balance Beginning book balance Within 1 year(inclusive) 9698491.15 18294637.69 1-2 years 7784603.76 9511259.22 2-3 years 5278542.28 2536281.98 Over 3 years 99125975.03 101352640.82 3-4 years 2121384.83 3501011.75 4-5 years 737000.59 1478563.36 Over five years 96267589.61 96373065.71 Total 121887612.22 131694819.71 3)Accrued bad debts reserve □Applicable □Not applicable In RMB Ending balance Opening balance Book value Bad debts reserve Book value Bad debts reserve Category Book Book Accrued Accrued Amount Ratio Amount value Amount Ratio Amount value ratio ratio Including: Including: Bad debts reserve accrual on single basis In RMB Opening balance Ending balance Category Bad debts Bad debts Book value Book value Accrued ratio Reason reserve reserve 158深圳市深粮控股股份有限公司2024年年度报告全文 Bad debts reserve accrual on portfolio:2 In RMB Ending balance Category Book value Bad debts reserve Accrued ratio Portfolio of expected credit 7905973.603166581.1640.05% loss Object-specific portfolio 13830884.67 531588.97 2.95% Total 21736858.27 3698170.13 Explanation on the basis to determine such portfolio:： If the bad debts reserve of account receivable is made on the basis of the general model of expected credit losses: □Applicable□Not applicable In RMB Phase I Phase II Phase III Expected credit losses Expected credit losses Bad debts reserve Expected credit losses for the entire duration for the entire duration Total over next 12 months (without credit (with credit impairment impairment occurred) occurred) Balance of Jan. 1 2024 2647199.61 99905653.94 102552853.55 Balance of Jan. 1 2024 in the period Current accrual 1051142.38 1051142.38 Current reversal 1694648.46 1694648.46 Other changes 171.86 171.86 Balance on Dec. 31 20243698170.1398211005.48101909175.61 Classification basis and bad debts reserve ratio for each stage Changes in book balance with significant changes in impairment provision in the current period □Applicable□Not applicable 4)Bad debts reserve accrued collected or reversal Bad debts reserve accrued in the period: In RMB Amount changed in the period Category Opening balance Ending balance Accrued Collected orreversal Written-off Other Bad debts reserve of other accounts 102552853.55 1051142.38 1694648.46 171.86 101909175.61 receivable Total 102552853.55 1051142.38 1694648.46 171.86 101909175.61 Important bad debts reserve collected or reversal: In RMB Basis and rationality to define the accrued ratio Name Collected or reversal Reason for reversal Manner of reversal of original bad debts reserve 159深圳市深粮控股股份有限公司2024年年度报告全文 5) Other account receivable charged off in the period Unit: RMB Item Amount charged off Including major other account receivable charged off: Unit: RMB Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N) Explanation on other account receivable charged off: 6)Top 5 other accounts receivable at ending balance by arrears party In RMB Proportion in total Enterprise Nature Ending balance Aging other receivables at Ending balance of ending balance (%) bad debt reserve First Intercourse funds 24108742.46 Over five years 19.78% 22187644.18 Second Intercourse funds 8326202.63 Over five years 6.83% 8326202.63 Third Intercourse funds 8285803.57 Over five years 6.80% 8285803.57 Fourth Intercourse funds 8257311.80 Over five years 6.78% 8257311.80 Fifth Intercourse funds 6781000.00 1-2 years 5.56% 0.00 Total 55759060.46 45.75% 47056962.18 7)Those booked into other account receivables due to centralized fund management In RMB Other explanation: 9.Account paid in advance (1) By aging In RMB Ending balance Opening balance Aging Amount Ratio Amount Ratio Within 1 year 7575700.47 77.49% 16244819.71 94.26% 1-2 year 1614572.15 16.52% 676069.63 3.92% 2-3 years 367510.00 3.76% 95050.89 0.55% Over 3 years 218246.08 2.23% 218761.69 1.27% Total 9776028.70 17234701.92 Explanation on reasons for not timely settling important account paid in advance with aging over one year: (2) Top 5 accounts paid in advance at ending balance by prepayment object Prepaid objects Ending balance Proportion in total prepayment balance at the end of period (%) First 5872392.80 60.07% Second 793035.00 8.11% 160深圳市深粮控股股份有限公司2024年年度报告全文 Prepaid objects Ending balance Proportion in total prepayment balance at the end of period (%) Third 606905.83 6.21% Fourth 394980.00 4.04% Fifth 366110.00 3.74% Total 8033423.63 82.17% Other explanation: 10.Inventory Whether the Company needs to comply with the disclosure requirements of the real estate industry or not No (1) By category In RMB Ending balance Opening balance Inventories fall Inventories provision or fall provision Item contract or contract Book balance performance Book value Book balance performance Book value costs costs impairment impairment provision provision Raw materials 80869593.40 14029193.74 66840399.66 63123938.67 15039481.32 48084457.35 Goods in process 26297439.74 26297439.74 27382027.01 27382027.01 Finished goods 3990325129.27 87793814.10 3903440914.10 3449447657.13 87071319.87 3362376337.26 Goods in transit 15150734.79 14241135.86 12559426.44 12559426.44 Low value consumables - 6304862.832190627.194114235.649760002.871718261.898041740.98 packaging materials Work in process- 5388642.06 5388642.06 5438363.67 5438363.67 0.00 outsourced Goods in transit 30064517.52 30064517.52 Total 109267426.74154400919.61 109402277.09 4044998642.52 3567711415.79 3458443989.04 5 (2) Data resource recognized as inventory In total Data resource Data resource Data resource Item inventory self- inventory acquired Total inventory outsourced processed with other manners (3) Inventories fall provision or impairment provision of contract performance costs In RMB Item Opening Current amount increased Current amount decreased Ending balance 161深圳市深粮控股股份有限公司2024年年度报告全文 balance Accrual Other Reversal orwrite-off Other Raw materials 15039481.32 152650.14 1162937.72 14029193.74 Finished goods 87071319.87 102622527.13 101668937.12 231095.78 87793814.10 Low value consumables - packaging 1718261.89 662968.69 190603.39 2190627.19 materials Work in process- 5438363.67 49721.61 5388642.06 outsourced Total 109267426.75 103438145.96 103072199.84 231095.78 109402277.09 Inventories fall provision accrued in terms of portfolio In RMB Ending Opening Portfolio name Inventories fall Accrued ratio of Opening Inventories fall Accrued ratio ofEnding balance provision inventories fall balance provision inventories fallprovision provision Standard for inventories fall provision accrued in terms of portfolio (4) Explanation on the capitalized amount of borrowing costs included in the ending balance of inventory (5) Explanation on the current amortization amount of contract performance costs 11.Assets held for sale In RMB Item Ending book Impairment Ending book Estimated Estimatedbalance provision value Fair value disposal cost disposal time Other explanation: 12. Non-current asset due within one year In RMB Item Ending balance Opening balance (1) Creditors’ investment maturing within one year □Applicable□Not applicable (2) Other creditors’ investment maturing within one year □Applicable□Not applicable 13.Other current assets In RMB Item Ending balance Opening balance Input tax to be deducted 111305418.60 48868668.82 Prepayment of income taxes 1424165.18 25137638.10 Prepaid and deferred expense 513701.48 1623160.79 Certificate of deposit 0.00 30226849.32 162深圳市深粮控股股份有限公司2024年年度报告全文 VAT deduction amount 0.00 1606.45 Total 113243285.26 105857923.48 Other explanation: 14.Creditors’ investment (1) Creditors’ investment In RMB Ending balance Opening balance Item Book balance Impairmentprovision Book value Book balance Impairment provision Book value Changes of impairment provision of creditors’ investment in current period In RMB Item Opening balance Current increase Current decrease Ending balance (2) Important creditors’ investment at year-end In RMB Ending balance Beginning balance Item Face Coupon Actual Maturity Overdue Face Coupon Actual Maturity Overdue value rate rate date principal value rate rate date principal (3) Accrual of impairment provision In RMB Phase I Phase II Phase III Bad debts reserve Expected credit losses Expected credit losses for Expected credit losses for over next 12 months the entire duration (without the entire duration (with Total credit impairment occurred) credit impairment occurred) Balance on Jan. 1 2024 in the period Classification basis and accrued ratio of bad debts reserve for each stage (4) Creditors’ investment charged off in the period Unit: RMB Item Amount charged off Including major creditors’ investment charged off: Explanation on creditors’ investment charged off: Changes in book balance with significant changes in the current period's impairment provision □Applicable□Not applicable Other explanation: 163深圳市深粮控股股份有限公司2024年年度报告全文 15.Other creditors’ investment (1) Other creditors’ investment In RMB Accumulated impairment Change of fair Accumulated provision Item Opening Accrual Interest Endingbalance interest adjustment value in the Cost change of recognized in Noteperiod balance fair value other comprehensive income Changes in impairment provision of other creditors’ investments in the current period In RMB Item Opening balance Current increase Current decrease Ending balance (2) Other creditors’ investment at year-end In RMB Other Ending balance Beginning balance creditors’ Face Coupon Actual Maturity Overdue Face Coupon Actual Maturity Overdue item value rate rate date principal value rate rate date principal (3) Accrual of impairment provision In RMB Phase I Phase II Phase III Bad debts reserve Expected credit losses Expected credit losses for Expected credit losses for over next 12 months the entire duration (without the entire duration (with Total credit impairment occurred) credit impairment occurred) Balance on Jan. 1 2024 in the period Classification basis and accrued ratio of bad debts reserve for each stage (4) Other creditors’ investment charged off in the period Unit: RMB Item Amount charged off Including major other creditors’ investment charged off: Explanation on other creditors’ investment charged off: Changes in book balance with significant changes in the current period's impairment provision □Applicable□Not applicable Other explanation: 16.Other equity instrument investment 164深圳市深粮控股股份有限公司2024年年度报告全文 In RMB Accumulated Accumulated Reasons for Gains Losses gains losses designating recognized in recognized in recognized in recognized in Dividend fair value other other other other income measurement Item Ending Openingbalance balance comprehensive comprehensive comprehensive comprehensive recognized with changes income for the income for the income at the income at the in this recognized in current period current period end of this end of this period other period period comprehensiveincome Other equity instrument investment derecognized in current period In RMB Accumulated gains carried Accumulated losses carried Item name Reason for de-recognition forward to retained gains forward to retained gains Sub-item disclosure of current non-trading equity instrument investments In RMB Reasons for Amount of designating fair Reasons for other value transferringother Item Dividends Accumulated Accumulated comprehensive measurement comprehensive income gains losses income with changestransferred to recognized in income to retained other retained earnings comprehensive earnings income Other explanation: 17.Long-term account receivable (1) Long-term account receivable In RMB Ending balance Opening balance Discount rate Item Bad debts Bad debts Book balance Book value Book balance Book value range reserve reserve (2) Accrued bad debts reserve In RMB Ending balance Opening balance Category Book balance Bad debts reserve Book Book balance Bad debts reserve Book Amount Ratio Amount Accrued value Accrued valueratio Amount Ratio Amount ratio Including: Including: The bad debt reserve is made in terms of the general model of expected credit losses 165深圳市深粮控股股份有限公司2024年年度报告全文 In RMB Phase I Phase II Phase III Bad debts reserve Expected credit losses Expected credit losses for Expected credit losses forthe entire duration (without the entire duration (with Totalover next 12 months credit impairment occurred) credit impairment occurred) Balance on Jan. 1 2024 in the period Classification basis and accrued ratio of bad debts reserve for each stage (3) Bad debts reserve accrued collected or reversal In RMB Amount changed in the period Category Opening balance Collected or Ending balanceAccrued reversal Written-off Other Important bad debts reserve collected or reversal: In RMB Basis and rationality to define the accrued ratio Enterprise Collected or reversal Reason for reversal Manner of reversal of original bad debts reserve Other explanation: (4) Long-term account receivable charged off in the period Unit: RMB Item Amount charged off Including major long-term account receivable charged off: Unit: RMB Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N) Explanation on long-term account receivable charged off: 18.Long-term equipment In RMB Current changes (+/-) Openin Opening Addi Other Othe Accrual Ending Ending g balance of tiona Cap Investmen comprehe r Cash of O balance Investee balanc impairme l ital t gains nsive equit dividend impair t balanc e of e (book nt inves red recognize income y or profit h impairme value) provision tmen ucti d under adjustmen chan announced ment (book on equity to issued provisio e nt t t ge n r value) provision I. Joint venture II. Associated enterprise Shenzhen Duoxi Equity - Investment Fund 15877 700262.6 88746 Management Co. Ltd. 23.81 7 1.14 Zhuhai Hengxing Feed 33653 - 32724 Industrial Co. Ltd. 135.48 928695.3 440.16 2 Shenliang Intelligent 24 Wulian Equity 659 - Investment Fund 27081 51 2422376 (Shenzhen) Partnership 889.78 3.3 .48 Enterprise (Limited) 0 Shenzhen Shenyuan 11686 11744 Data Tech. Co. Ltd 177.41 58809.77 987.1 166深圳市深粮控股股份有限公司2024年年度报告全文 8 24 74008 659 - 45356Subtotal 926.48 0.00 51 3992524 888.43.3 .74 4 0 24 Total 74008 926.480.00513992524888.43.3.744 0 The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value □Applicable□Not applicable The recoverable amount is determined on the basis of the present value of expected future cash flows □Applicable□Not applicable Reasons for significant discrepancies between the aforementioned information and the information or external information used in previous years' impairment testing Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the actual situation of the current year Other explanation: 19.Other non-current financial assets In RMB Item Ending balance Opening balance Equity instrument investment 57500.00 57500.00 Total 57500.00 57500.00 Other explanation: 20.Investment real estate (1) Measured by cost □Applicable □Not applicable In RMB Item House and building Land use right Construction inprogress Total I. Original book value 1.Opening balance 614752374.09 614752374.09 2.Current amount increased 55903541.44 55903541.44 (1) Outsourcing (2) Inventory\fixed assets\construction in 55903541.44 55903541.44 process transfer-in (3) Increased by combination 3.Current amount decreased (1) Disposal (2) Other transfer-out 4.Ending balance 670655915.53 670655915.53 II. Accumulated 167深圳市深粮控股股份有限公司2024年年度报告全文 depreciation and accumulated amortization 1.Opening balance 351155342.20 351155342.20 2.Current amount increased 17425326.58 17425326.58 (1) Accrual or amortization 17425326.58 17425326.58 3.Current amount decreased (1) Disposal (2) Other transfer-out 4.Ending balance 368580668.78 368580668.78 III. Impairment provision 1.Opening balance 2.Current amount increased (1) Accrual 3. Current amount decreased (1) Disposal (2) Other transfer-out 4.Ending balance IV. Book value 1.Ending book value 302075246.75 302075246.75 2. Opening book value 263597031.89 263597031.89 The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value □Applicable□Not applicable The recoverable amount is determined on the basis of the present value of expected future cash flows □Applicable□Not applicable Reasons for significant discrepancies between the aforementioned information and the information or external information used in previous years' impairment testing Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the actual situation of the current year Other explanation: (2) Measured at fair value □Applicable□Not applicable (3) Converted to investment real estate and measured at fair value In RMB Item Accounts before Reason for Approval Impact on Impact on other conversion Amount conversion procedures gains/losses comprehensiveincome (4) Investment real estate without property certificate completed In RMB 168深圳市深粮控股股份有限公司2024年年度报告全文 Reason for not obtaining the property Item Book value rights certificate 1st 7th- 20th floors of Dongguan No.1 The joint inspection has not been 48448609.84 Grain and Oil Headquarters completed temporarily Remaining issues currently being Office Building Rental Haizhifeng Part 821981.29 followed up Other explanation: 21.Fixed assets In RMB Item Ending balance Opening balance Fixed assets 2009520283.95 2171989776.52 Disposal of fixed assets 7552.00 Total 2009520283.95 2171997328.52 (1) Fixed assets In RMB Item House and Machinery Transport Electronic andbuildings equipment equipment other equipment Total I. Original book value: 1.Opening balance 2030666059.42 779559717.86 16758876.75 104121959.67 2931106613.70 2.Current amount increased 9205482.95 17288443.03 839650.43 4679055.94 32012632.35 (1) Purchase 4338198.00 839650.43 1742457.19 6920305.62 (2) Construction in progress 7458146.94 12950245.03 2094777.81 22503169.78 transfer-in (3) Increased by combination (4) Other increase 1747336.01 841820.94 2589156.95 3.Current amount decreased 98410268.63 5106863.10 293227.27 7885906.73 111696265.73 (1) Disposal or scrap 2606987.96 293227.27 7553033.37 10453248.60 (2) Other decrease 98410268.63 2499875.14 332873.36 101243017.13 4.Ending balance 1941461273.74 791741297.79 17305299.91 100915108.88 2851422980.32 II. Accumulated depreciation 1.Opening balance 350849019.39 318153516.48 14387876.06 72903471.54 756293883.47 2.Current amount increased 46344897.70 36131528.06 738012.43 12658525.44 95872963.62 (1) Accrual 45253792.30 36131528.06 738012.43 11085040.44 93208373.22 (2) Other increase 1091105.40 1573485.00 2664590.40 3.Current amount decreased 1573485.00 2260264.10 268510.03 8730226.12 12832485.25 (1) Disposal or scrap 2260264.10 268510.03 7548832.01 10077606.14 (2) Other decrease 1573485.00 1181394.11 2754879.11 4.Ending balance 395620432.09 352024780.44 14857378.46 76831770.86 839334361.84 III. Impairment provision 1.Opening 2813063.84 9889.87 2822953.71 169深圳市深粮控股股份有限公司2024年年度报告全文 balance 2.Current amount increased (1) Accrual 3.Current amount decreased 254619.18 254619.18 (1) Disposal or scrap 254619.18 254619.18 4.Ending balance 2558444.66 9889.87 2568334.53 IV. Book value 1.Ending book value 1545840841.65 437158072.69 2447921.45 24073448.15 2009520283.95 2. Opening book value 1679817040.03 458593137.54 2371000.69 31208598.26 2171989776.52 (2) Temporarily idle fixed assets In RMB Accumulated Impairment Item Original book value Book value Note depreciation provision (3) Fixed assets leased out by operation In RMB Item Ending book value (4) Fix assets without property certification held In RMB Item Book value Reasons for without the propertycertification Civil engineering of CDE warehouse Dawn Grain Reserve Warehouse 576992093.23 Still under processing Housing and buildings of Dongguan Industrial and Trade 82473841.32 Under processing Office building 13578444.19 Remaining issues currently beingfollowed 1st to 3rd floors of Grain and Oil 4527320.33 The joint inspection has not beenHeadquarters completed temporarily Other explanation: (5) Impairment testing of fixed assets □Applicable□Not applicable (6) Disposal of fixed assets In RMB Item Ending balance Opening balance 170深圳市深粮控股股份有限公司2024年年度报告全文 7552.00 Total 7552.00 Other explanation: 22.Construction in progress In RMB Item Ending balance Opening balance Construction in progress 39312847.70 51288301.16 Total 39312847.70 51288301.16 (1) Construction in progress In RMB Ending balance Opening balance Item Book balance Impairment Impairmentprovision Book value Book balance provision Book value Dongguan grain storage and wharf matching 23185559.25 23185559.25 32632618.62 32632618.62 project CDE storage of Dongguan Food Industrial Park 6281644.10 6281644.10 4965118.29 4965118.29 and wharf mating projects Low Temperature Warehouse Renovation 3942246.16 3942246.16 Project of Pinghu Grain Depot Precision processing color selection and impurity 1061287.68 1061287.68 removal equipment project Powder packaging equipment 814388.06 814388.06 1784995.63 1784995.63 project Deep processing 513729.78 513729.78 project Small packaging 8880595.19 8880595.19 production line Other 8928295.83 4900573.38 4027722.45 7256767.03 4745523.38 2511243.65 Total 44213421.08 4900573.38 39312847.70 56033824.54 4745523.38 51288301.16 (2) Changes of major construction in progress In RMB Item Budget Opening Current Transfer Othe Ending Propo Prog Accumu Includi Interest Capitbalance amount -in fixed r balance rtion ress lated ng: capitali al 171深圳市深粮控股股份有限公司2024年年度报告全文 increase assets decre of capitaliz amount zation resou d ased projec ation of of rate in rces in the t interest capitali Period Perio invest zation d ment of in interest budge in t Period Dong guan grain Loan stora s ge and 1242000 326326 62209 893668 7399 572.2411488.5088.5372219 from wharf 000.00 18.62 66.53 7.76 66 564.81 % 0% 95.16 finan cial matc instit hing ution proje ct CDE stora ge of Dong guan Loan Food s Indus trial 1087300 496511 35731 225658 62816 98.79 98.7 867305 from Park 000.00 8.29 10.75 4.94 44.10 % 9% 68.74 finan cial and instit wharf ution matin g proje cts 7399 Total 2329300 375977 97940 111932 30396 123952000.00 36.91 77.28 72.70 572.66 208.91 563.90 (3) Impairment provision of construction in progress In RMB Item Opening balance Current increase Current decrease Ending balance Reason for accrual Other explanation: (4) Impairment testing of construction in progress □Applicable□Not applicable (5) Engineering material In RMB Ending balance Opening balance Item Book balance Impairment Impairmentprovision Book value Book balance provision Book value Other explanation: 172深圳市深粮控股股份有限公司2024年年度报告全文 23.Productive biological asset (1) Measured at cost □Applicable □Not applicable □Applicable □Not applicable In RMB Item Plant Livestock Forestry Fisheries Total I. Original book value 1.Opening balance 416771.28 416771.28 2.Current amount increased (1) Outsourcing (2) Self-cultivate 3.Current amount decreased (1) Disposal (2) Other 4.Ending balance 416771.28 416771.28 II. Accumulated depreciation 1.Opening balance 58154.28 58154.28 2.Current amount increased 9692.40 9692.40 (1) Accrual 9692.40 9692.40 3.Current amount decreased (1) Disposal (2) Other 4.Ending balance 67846.68 67846.68 III. Impairment provision 1.Opening balance 2.Current amount increased (1) Accrual 3.Current amount decreased (1) Disposal (2) Other 4.Ending balance IV. Book value 1.Ending book value 348924.60 348924.60 2. Opening book 358617.00 358617.00 173深圳市深粮控股股份有限公司2024年年度报告全文 value (2) Impairment testing of productive biological asset measured at cost model □Applicable□Not applicable (3) Productive biological asset measured at fair value □Applicable□Not applicable 24. Oil and gas asset □ Applicable□Not applicable 25. Right-of-use asset (1) On right-of-use asset In RMB Item House and building Land use rights Total I. Original book value 1.Opening balance 110474798.90 1823669.22 112298468.12 2.Current amount increased 86582460.08 1052300.17 87634760.25 (1) Lease 86582460.08 1052300.17 87634760.25 3.Current amount 1627356.491627356.49 decreased Other decrease 1627356.49 1627356.49 4.Ending balance 195429902.49 2875969.39 198305871.88 II. Accumulated depreciation 1.Opening balance 54661515.02 703804.94 55365319.96 2.Current amount increased 29020700.05 289168.19 29309868.24 (1) Accrual 29020700.05 289168.19 29309868.24 3.Current amount decreased 1627356.49 1627356.49 (1) Disposal (2) Other decrease 1627356.49 1627356.49 4.Ending balance 82054858.58 992973.13 83047831.71 III. Impairment provision 1.Opening balance 2.Current amount increased (1) Accrual 3.Current amount decreased (1) Disposal 4.Ending balance IV. Book value 1.Ending book value 113375043.91 1882996.26 115258040.17 2. Opening book value 55813283.88 1119864.28 56933148.16 174深圳市深粮控股股份有限公司2024年年度报告全文 (2) Impairment testing of right-of-use assets □Applicable□Not applicable Other explanation: 26.Intangible assets (1) Intangible assets In RMB Non- Item Land use Patent patent Shop use Software Forest use Trademaright technolo rights usage rights rights rk rights Total gy I. Original book value 1.Opening 585810806. 54979841. 3610487. 108614817. 22859104. 98073.3 775973131. balance 50 97 37 05 98 2 19 2.Current amount 2096568.36 8661447.51 2047.04 10760062.9 increased 1 (1) Purchase 8661447.51 2047.04 8663494.55 (2) Internal R&D (3) Increased by combinatio n (4) Other increase 2096568.36 2096568.36 3.Current amount 88540.56 457063.72 2047.04 547651.32 decreased (1) Disposal 2047.04 2047.04 (2) Other decrease 88540.56 457063.72 545604.28 4.Ending 587907374. 54891301. 3610487. 116819200. 22859104. 98073.3 786185542. balance 86 41 37 84 98 2 78 II.Accumulat ed depreciatio n 1.Opening 129883658. 31200957. 1585353. 52875861.4 8456983.5 91477.5 224094292. balance 78 77 29 9 6 4 43 2.Current amount 14795217.3 1258740.40 9 90028.90 16338073.6 7772863.602883.02 33257806.9 increased 8 (1) Accrual 14120617.5 1258740.46 9 90028.90 16338073.6 7772863.602883.02 32583207.2 4 (2) Other increase 674599.74 674599.74 3.Current amount 90000.00 632.94 90632.94 decreased (1) Disposal 632.94 632.94 (3) Other decrease 90000.00 90000.00 175深圳市深粮控股股份有限公司2024年年度报告全文 4.Ending 144678876. 32459698. 1675382. 69123935.1 9229847.1 93727.6 257261466. balance 08 26 19 6 6 2 47 III.Impairment provision 1.Opening 5553283.5 balance 4 5553283.54 2.Current amount increased (1) Accrual 3.Current amount decreased (1) Disposal 4.Ending 5553283.5 balance 4 5553283.54 IV. Book value 1.Ending 443228498. 16878319. 1935105. 47695265.6 13629257. book value 78 61 18 8 82 4345.70 523370792. 77 2. Opening 455927147. 18225600. 2025134. 55738955.5 14402121. book value 72 66 08 6 42 6595.78 546325555. 22 Ratio of the intangible assets formed by internal R&D in balance of intangible assets at period-end (2) Data resource recognized as intangible assets □Applicable □Not applicable (3) Land use rights without certificate of ownership In RMB Reasons for without the property Item Book value certification Land use right 7849990.00 Still in progress Other explanation: (4) Impairment testing of intangible assets □Applicable□Not applicable 27.Goodwill (1) Original book value of goodwill In RMB Investee or Current increased Current decreased matters forming Opening balance Formed bybusiness Disposal Ending balancegoodwill combination Total 176深圳市深粮控股股份有限公司2024年年度报告全文 (2) Impairment provision of goodwill In RMB Investee or Current increased Current decreased matters forming Opening balance Accrual Disposal Ending balancegoodwill Total (3) Related information of asset group or asset group portfolio where goodwill is included Component and basis of asset Consistent with previous Name Operation segment and basis group or asset group portfolio years(Y/N) Changes in asset group or asset group portfolio Objective fact and basis Name Component before change Component after change leading to change Other explanation (4) Specific method of determining the recoverable amount The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value □Applicable ?Not applicable The recoverable amount is determined on the basis of the present value of expected future cash flows □Applicable□Not applicable Reasons for significant discrepancies between the aforementioned information and the information or external information used in previous years' impairment testing Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the actual situation of the current year (5) Completion of performance commitments and corresponding impairment of goodwill When goodwill is formed there is a performance commitment and the reporting period or the previous period is within the performance commitment period □Applicable□Not applicable Other explanation: 28.Long-term expenses to be apportioned In RMB Item Opening balance Current amount Currentincreased amortization Other decreased Ending balance Decoration fee 7335025.84 606399.67 2071622.22 5869803.29 Improvement expenditure for fix 13393709.04 8746681.95 4973792.09 17166598.90 assets Other 3965583.17 1800.00 990596.68 2976786.49 Total 24694318.05 9354881.62 8036010.99 26013188.68 Other explanation: 177深圳市深粮控股股份有限公司2024年年度报告全文 29.Deferred income tax asset /Deferred income tax liabilities (1) Deferred income tax assets not offset In RMB Ending balance Opening balance Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax differences asset differences asset Impairment provision for assets 78886233.43 19113818.29 79024031.58 18487424.12 Unrealized profits in internal transactions 1955326.35 293298.96 3110821.11 1173392.02 Credit impairment loss 131272060.28 32427392.41 131582333.01 32508076.97 Lease liabilities 72583919.01 18145979.75 60423752.25 9667435.83 Total 284697539.07 69980489.41 274140937.95 61836328.94 (2) Deferred income tax liability not offset In RMB Item Ending balance Opening balance Taxable temporary Deferred income tax Taxable temporary Deferred income tax differences liabilities differences liabilities Asset evaluation appreciation of enterprise combination 41980665.84 10495166.46 43635535.04 10908883.86 under different control Right-of-use asset 68309530.63 17077382.66 56763213.31 9108070.16 Total 110290196.47 27572549.12 100398748.35 20016954.02 (3) Deferred income tax assets and deferred income tax liabilities listed as net amount after offsetting In RMB Offsetting between the Ending balance of Trade-off between the Opening balance of Item deferred income tax deferred income tax deferred income tax deferred income taxassets and liabilities assets or liabilities after assets and liabilities at assets or liabilities after offsetting period-begin offsetting Deferred income tax asset 17077382.66 52903106.75 9079033.56 52757295.38 Deferred income tax liabilities 17077382.66 10495166.46 9079033.56 10937920.46 (4) Details of unrecognized deferred income tax assets In RMB Item Ending balance Opening balance Deductible temporary differences 151802527.41 73593637.62 Deductible loss 319287351.61 251212047.17 Total 471089879.02 324805684.79 (5) Deductible losses of unrecognized deferred income tax assets expiring in following years In RMB Year Ending balance Beginning balance Note 202416724256.16 202559047529.9256660853.56 202624075232.2019393006.74 178深圳市深粮控股股份有限公司2024年年度报告全文 202737011114.5933681969.13 202895247245.5398962940.16 202981843220.206398410.05 20301592707.061592707.06 203111566491.6211566491.62 20326231412.696231412.69 20332672397.80 Total 319287351.61 251212047.17 Other explanation: 30.Other non-current asset In RMB Item Ending balance Opening balance Book balance Impairmentprovision Book value Book balance Impairment provision Book value Property to be relocated 3523917.24 3523917.24 3523917.24 3523917.24 Prepaid for engineer 2497360.73 2497360.73 Prepaid for system 3774032.76 3774032.76 Total 6021277.97 6021277.97 7297950.00 7297950.00 Other explanation: 31.Assets with restricted ownership or use rights In RMB Ending Beginning Item Book Book value Restriction Restriction Book Restriction Restrictionbalance type status balance Book value type status Guarantee deposit Guarantee Monetary credit fund 9263948.38 9263948.38 deposit 5464837.31 5464837.31 deposit lawsuit credit freezing deposit. etc etc.Total 9263948.38 9263948.38 5464837.31 5464837.31 Other explanation: 32.Short-term loans (1) By category In RMB Item Ending balance Opening balance Loan in credit 1484605101.05 1223462519.16 Total 1484605101.05 1223462519.16 Explanation on category of short-term loans: 179深圳市深粮控股股份有限公司2024年年度报告全文 (2) Overdue and unpaid short-term loans The overdue and unpaid short-term loans was 0.00 yuan at period-end including follow major amount: In RMB Borrower Ending balance Loan rate Overdue time Overdue interest Other explanation: 33. Tradable financial liability Item Ending balance Opening balance Including: Including: Other explanation: 34.Derivative financial liability In RMB Item Ending balance Opening balance Other explanation: 35. Note payable In RMB Category Ending balance Opening balance Notes expiring at year-end not repaid was 0.00 yuan. 36. Account payable (1) Account payable In RMB Item Ending balance Opening balance Trade accounts payable 320908083.65 157073307.00 Account payable for engineer and equipment 69278292.34 176815688.99 Other 2600723.24 2276200.81 Total 392787099.23 336165196.80 (2) Major accounts payable with aging over one year or overdue major accounts payable Other explanation: 37.Other account payable In RMB 180深圳市深粮控股股份有限公司2024年年度报告全文 Item Ending balance Opening balance Dividend payable 2933690.04 2933690.04 Other account payable 265387637.46 275112561.49 Total 268321327.50 278046251.53 (1) Interest payable In RMB Item Ending balance Opening balance Important overdue and unpaid interest situation: In RMB Borrower Overdue amount Overdue reason Other explanation: (2) Dividend payable In RMB Item Ending balance Opening balance Shenzhen Investment Management Company 2690970.14 2690970.14 Untrusted shares 242719.90 242719.90 Total 2933690.04 2933690.04 Other explanations including important dividends payable that have not been paid for more than one year should disclose the reasons for non payment: (3) Other account payable 1)By nature In RMB Item Ending balance Opening balance Accounts receivable and other expenses 181075520.70 204092429.04 Deposit and margin 71419422.77 59175450.98 Engineering quality assurance deposit and final payment 439888.55 2697829.08 Accrued expenses 12452805.44 9146852.39 Total 265387637.46 275112561.49 2)Significant other account payable with aging over 1 year or overdue significant other account payable In RMB Item Ending balance Reason for not repaying or carry-over 38.Accounts received in advance (1) Accounts received in advance In RMB Item Ending balance Opening balance Lease payment received in advance 1120939.23 3654.89 181深圳市深粮控股股份有限公司2024年年度报告全文 Other 568809.63 1081046.71 Total 1689748.86 1084701.60 (2) Significant accounts received in advance with aging over one year or overdue significant accounts received in advance In RMB Item Ending balance Reason for not repaying or carry-over In RMB Item Change in amount Reason for change 39.Contract liabilities In RMB Item Ending balance Opening balance Advance on sales 126590458.95 86566253.73 Total 126590458.95 86566253.73 Significant contract liabilities with aging over 1 year In RMB Item Ending balance Reason for not repaying or carry-over Amount and reasons for important changes in book value in the period In RMB Item Change in amount Reason for change 40.Wage payable (1) Wage payable In RMB Item Opening balance Current increased Current decreased Ending balance I. Short-term compensation 253139696.10 233803876.16 312986714.32 173956857.94 II. After-service welfare-defined 12314242.50 27439433.28 32886693.69 6866982.09 contribution plans III. Dismissed welfare 760724.60 75058.39 109108.39 726674.60 Total 266214663.20 261318367.83 345982516.40 181550514.63 (2) Short-term compensation In RMB Item Opening balance Current increased Current decreased Ending balance 1. Wage bonus allowance and subsidy 244877081.13 188746265.77 267341101.67 166282245.23 2. Employees’ welfare 96864.69 4749559.66 4477896.52 368527.83 3. Social insurance charges 302549.13 6852237.93 6772082.31 382704.75 Including: medical insurance premium 272678.90 5965562.25 5890358.97 347882.18 Industrial injury insurance 3329.93 485056.04 482256.09 6129.88 premiums Maternity 26540.30 401619.64 399467.25 28692.69 182深圳市深粮控股股份有限公司2024年年度报告全文 insurance premiums 4. Housing public reserve 36788.20 21353475.85 21338987.27 51276.78 5. Trade union fee and education fee 7817412.95 4927162.83 6018623.43 6725952.35 Non-monetary welfare 7158174.12 7017023.12 141151.00 Other short-term compensation 9000.00 17000.00 21000.00 5000.00 Total 253139696.10 233803876.16 312986714.32 173956857.94 (3) Defined contribution plans In RMB Item Opening balance Current increased Current decreased Ending balance 1. Basic endowment insurance premiums 27351.36 17719286.56 17690136.82 56501.10 2. Unemployment insurance premiums 6375.81 867396.44 873772.25 3. Enterprise annuity 12280515.33 8852750.28 14322784.62 6810480.99 Total 12314242.50 27439433.28 32886693.69 6866982.09 Other explanation: 41.Taxes payable In RMB Item Ending balance Opening balance VAT 2133176.38 3929827.56 Enterprise income tax 95215697.77 78612383.92 Personal income tax 1450305.23 919489.66 Urban maintenance and construction tax 113475.35 184436.23 Property tax 1350095.44 1402724.23 Stamp tax 1089799.33 924833.66 Deed tax 664227.84 664227.84 Use tax of land 138387.07 15205.45 Educational surtax 81630.62 253657.15 Environment protection tax 2644.32 Total 102239439.35 86906785.70 Other explanation: 42.Liability held for sale In RMB Item Ending balance Opening balance Subsidiary Wuhan Jiacheng 66579828.59 Total 0.00 66579828.59 Other explanation: 43.Non-current liabilities due within one year In RMB Item Ending balance Opening balance Lease liabilities due within one year 42927367.21 22805473.76 183深圳市深粮控股股份有限公司2024年年度报告全文 Total 42927367.21 22805473.76 Other explanation: 44.Other current liabilities In RMB Item Ending balance Opening balance Deferred output tax 8042645.47 3896108.63 Other 0.00 31.93 Total 8042645.47 3896140.56 Changes of short-term bonds payable: In RMB Accrual Premium Breach Bonds Face Issuance Bonds Amount Opening Issued in interest and Paid in Ending contractvalue date term issued balance the period by face discount the period balance or value amortization not(Y/N) Other explanation: 45.Long-term loan (1) Category of long-term loan In RMB Item Ending balance Opening balance Explanation on category of long-term loans: Other explanation including interest rate range: 46. Bonds payable (1) Bonds payable In RMB Item Ending balance Opening balance (2) Changes of bonds payable (not including preferred stock perpetual capital securities and other financial instruments classified as financial liability) In RMB Accru Premium Breac Face Coup Issuan Bonds Amou Openi ng Issued al and Paid Endin h Bonds value on ce term nt balanc in the intere st by discou in the g contra rate date issued e period face nt period balanc ct or e not(Y/ value amortization N) Total —— —— 184深圳市深粮控股股份有限公司2024年年度报告全文 (3) Description of convertible bonds (4) Other financial instruments classified as financial liability Basic information of the outstanding preferred stock and perpetual capital securities at period-end Changes of outstanding preferred stock and perpetual capital securities at period-end In RMB Outstanding Period-beginning Current increased Current decreased Period-end financial instrument Amount Book value Amount Book value Amount Book value Amount Book value Explanation on the basis for classifying other financial instrument into financial liability Other explanation 47.Lease liability In RMB Item Ending balance Opening balance Lease payments 126474987.95 64121413.50 Unrecognized financing charges -5463119.98 -3570988.00 Lease liabilities due within one year -42927367.21 -22805473.76 Total 78084500.76 37744951.74 Other explanation: 48.Long-term account payable In RMB Item Ending balance Opening balance Special account payable 16636326.62 17994633.05 Total 16636326.62 17994633.05 (1) By nature In RMB Item Ending balance Opening balance Other explanation: (2) Special account payable In RMB Item Opening balance Current increased Current decreased Ending balance Causes Depreciation funds for fixed assets of government reserve 16214402.96 207446.57 16421849.53 grain depots Special funding for research in the grain public 207477.09 207477.09 welfare industry Shenzhen Hospital Phase III housing expropriation 1529253.00 138381.00 1667634.00 property rights 185深圳市深粮控股股份有限公司2024年年度报告全文 exchange Grain and oil market monitoring and early warning 3500.00 3500.00 7000.00 subsidy Special funds for the construction and maintenance of 40000.00 40000.00 the grain emergency system Total 17994633.05 349327.57 1707634.00 16636326.62 Other explanation: 49. Long-term wage payable (1) Long-term wage payable In RMB Item Ending balance Opening balance (2) Changes of defined benefit plans Present value of the defined benefit plans: In RMB Item Current Period Last Period Scheme assets: In RMB Item Current Period Last Period Net liability (assets) of the defined benefit plans In RMB Item Current Period Last Period Content of defined benefit plans and relevant risks impact on future cash flow of the Company as well as times and uncertainty: Major actuarial assumption and sensitivity analysis of defined benefit plans: Other explanation: 50.Accrual liabilities In RMB Item Ending balance Opening balance Causes Other explanation including relevant important assumptions and estimation: 51.Deferred income In RMB Item Opening balance Current increased Current decreased Ending balance Causes Government grant 82819873.24 4057114.25 7673371.50 79203615.99 Total 82819873.24 4057114.25 7673371.50 79203615.99 -- Other explanation: 186深圳市深粮控股股份有限公司2024年年度报告全文 52.Other non-current liabilities In RMB Item Ending balance Opening balance Other explanation: 53. Share capital In RMB Current increased (decreased) +/- Opening balance New shares Shares issued Bonus shares converted from Other Subtotal Ending balance public reserve Total shares 1152535254.00 1152535254.00 Other explanation: 54. Other equity instrument (1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end (2) Changes of outstanding preferred stock and perpetual capital securities at period-end In RMB Period-beginning Current increased Current decreased Period-end Outstanding financial instrument Quantity Book value Quantity Book value Quantity Book value Quantity Book value Explanation on changes in other equity instrument reasons for changes and relevant accounting treatment basis: Other explanation: 55. Capital reserve In RMB Item Opening balance Current increased Current decreased Ending balance Capital premium (Share capital premium) 1267255141.21 4243305.73 1263011835.48 Other capital reserve 8896381.86 8896381.86 Total 1276151523.07 4243305.73 1271908217.34 Other instructions including changes in the current period reasons for changes: In September 2024 a subsidiary of the Company Shenzhen Hualian Grain and Oil Trading Co. Ltd. purchased 49% minority equity interest in its subsidiary Shuangyashan Shenliang Cereals Base Co. Ltd. The difference between the transaction consideration and the corresponding change in the shareholding ratio based on the fair value of the identifiable net assets calculated continuously from the purchase date was adjusted to reduce capital reserve by RMB 90805.74.In December 2024 the Company completed the equity delivery of Xingye Food Co. Ltd. (hereinafter referred to as “XingyeFood”) which is a subsidiary of Shenzhen Food Materials Group Co. Ltd. This transaction constituted a business combination under the same control. The difference between the carrying value of the combination consideration (or the total par value of the issued shares) and the carrying value of the net assets acquired in the combination was adjusted to reduce capital reserve (share premium) by RMB 4152500.00. Meanwhile the net assets increased due to the combination were adjusted in the capital reserve 187深圳市深粮控股股份有限公司2024年年度报告全文 (share premium) under shareholders' equity in the comparative financial statements. For the portion of the retained earnings (sum of surplus reserves and undistributed profits) realized by the acquiree before the business combination that belongs to the combining party it was transferred from capital reserve to retained earnings. 56. Treasury stock In RMB Item Opening balance Current increased Current decreased Ending balance Other explanation including changes and reason for changes: 57. Other comprehensive income In RMB Current Period Less: written in other Less: written in other Account comprehensive comprehensive Opening before income in previous income in previous Less: Attributable Attributable toItem Endingbalance income period and carried period and carried income to parent minority balance tax in the forward to forward to retained tax company shareholders period gains/losses in current earnings in current expense after tax after tax period period II. Other comprehensive - - income re- 833174. 254811. 42043.982 5 212767.87 620406classified into 82 .95 gains/losses Exchange differences on translation of - 254811. 42043.9 - foreign currency 833174. 82 5 212767.87 620406 financial 82 .95 statements Total of other - - comprehensive 833174. 254811. 42043.9 income 82 82 5 212767.87620406.95 Other explanation including the active part of the hedging gains/losses of cash flow transfer to initial reorganization adjustment for the arbitraged items: 58. Reasonable reserve In RMB Item Opening balance Current increased Current decreased Ending balance Work safety fee 741968.19 1243738.41 833088.84 1152617.76 Total 741968.19 1243738.41 833088.84 1152617.76 Other explanation including changes in current period and reason for changes: 59. Surplus public reserve In RMB Item Opening balance Current increased Current decreased Ending balance Statutory surplus reserves 483103366.38 133626331.30 616729697.68 188深圳市深粮控股股份有限公司2024年年度报告全文 Total 483103366.38 133626331.30 616729697.68 Other explanation including changes in current period and reasons for changes: 60. Retained profit In RMB Item Current period Last period Retained profit at last period-end before adjustment 1916792566.57 1910954084.79 Total adjustment amount of retained profit at period-beginning (adjustment increase -10287612.07 +/adjustment decrease-) Retained profit at period-beginning after adjustment 1916792566.57 1900666472.72 Add: net profit attributable to shareholder of parent company 325309578.52 347739109.06 Less: withdrawal of legal surplus reserve 133626331.30 43479201.71 Common stock dividends payable 230507050.80 288133813.50 Retained profit at period-end 1877968762.99 1916792566.57 Details about adjusting the retained profits at the beginning of the period: 1) Due to the retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations the retained profit at the beginning of the period was affected by negative 148597.5 yuan. 2) Due to changes in accounting policies the retained profit at the beginning of the period was affected by 0.00 yuan. 3) Due to major accounting error correction the retained profit at the beginning of the period was affected by 0.00 yuan 4) Due to changes in merge scope caused by the same control the retained profits at the beginning of the period was affected by - 10436209.66 yuan. 5) Due to other adjustments the retained profits at the beginning of the period was affected by 0.00 yuan. 61. Operating revenue and operating cost In RMB Item Current period Last periodIncome Cost Income Cost Main business 5371493401.89 4477833978.58 6189691606.18 5228738901.98 Other business 3596445.02 1167456.25 313750.64 106899.36 Total 5375089846.91 4479001434.83 6190005356.82 5228845801.34 Whether the lower of the audited net profit before and after deduction of non-recurring gains/ losses is negative or not □Yes □No Information on breakdown of operation income and cost: In RMB Branch 1 Branch 2 Total Category Operating Operating Operating Operating Operating Operating Operating Operating revenue cost revenue cost revenue cost revenue cost Business types Including: Classificati on by business area Including: Market or 189深圳市深粮控股股份有限公司2024年年度报告全文 customer type Including: Contract types Including: Classificati on by time of goods transfer Including: Classificati on by contract duration Including: Classificati on by sales channel Including: Total Information relating to performance obligations: Item Time for Important Nature of the Is it the main Expected Types of quality performance payment terms goods promised responsible refunds to assurance obligations to transfer by person customers borne provided by the the company by the company company and related obligations Other explanations Information related to the transaction price allocated to the remaining performance obligations: At the end of this reporting period the contract has been signed but the income corresponding to unfulfilled or incomplete performance obligations is 126590458.95 yuan which is expected to be recognized in the year of 2025.Related information of contract variable price: Significant contract changes or significant transaction price adjustments In RMB Item Accounting treatment method Impact on income Other explanation: 62.Tax and surcharge In RMB Item Current period Last period Urban maintenance and construction tax 1221674.64 1383698.15 Education surcharge 944426.67 1051442.01 Property tax 13228693.85 11861483.21 Use tax of land 1860162.47 1957226.62 Vehicle and vessel use tax 21598.24 19917.36 Stamp duty 2363400.05 2629698.94 Other 12703.14 6972.53 Total 19652659.06 18910438.82 190深圳市深粮控股股份有限公司2024年年度报告全文 Other explanation: 63.Administration expenses In RMB Item Current period Last period Labor and social security benefits 92027598.27 132104257.58 Depreciation and amortization of long- term assets 43892426.93 43251708.23 Office expenses 7832785.01 5977040.35 Intermediary agency fees 4537569.50 4727255.72 Communication expense 2163612.00 1738151.72 Vehicle usage fee 1694972.94 2134383.20 Travelling expense 1130140.38 1131371.09 Rental 713648.91 454215.27 Repairing expense 624504.35 969999.94 Low-value consumable 505314.41 456480.17 Business hospitality 409836.76 760742.03 Relocation and shutdown costs 37526.60 25476.09 Other 12675264.53 19334010.25 Total 168245200.59 213065091.64 Other explanation: 64.Sales expense In RMB Item Current period Last period Labor and social security benefits 99897664.20 114823759.85 Depreciation and amortization of long- term assets 9900670.84 11669044.05 Office expenses 10845695.36 10373217.31 Sales service fee 7295139.32 6944356.95 Storage and loading/unloading fees 1298777.88 8973219.39 Low value consumables and other loss expenses 3722408.10 899870.58 Travel expenses 2556940.10 3007934.57 Business hospitality 1098538.42 1505531.70 Advertising expenses 274794.60 1100020.83 Rental 514723.11 1175659.26 Property insurance premium 1199180.50 939751.88 Logistics and transportation costs 702660.09 551895.13 Sales commission 75437.50 Vehicle use fee 284432.28 260081.34 Other 10218705.16 14130055.64 Total 149810329.96 176429835.98 Other explanation: 65.R&D expenses In RMB Item Current period Last period Labor and social security benefits 12077363.97 12149800.39 Direct investment 7521427.97 2895753.44 191深圳市深粮控股股份有限公司2024年年度报告全文 Depreciation and amortization 3063811.07 3174111.67 Entrusted R&D expense 80188.68 117726.42 Travel expense 847673.24 650799.60 Inspection and debugging expense 929050.82 604082.75 Other expenses 689128.68 453090.41 Total 25208644.43 20045364.68 Other explanation: 66.Financial expense In RMB Item Current period Last period Interest expenses 33986936.32 39968255.33 Including: interest expenses of lease liability Less: interest capitalization Interest income -1832540.57 -959189.54 Exchange gains/losses 75332.11 286319.71 Handling fee and others 448518.55 767442.39 Total 32678246.41 40062827.89 Other explanation: 67.Other income In RMB Sources Current period Last period Government grant 10243944.62 14663529.88 Input tax deduction 1579562.14 7890252.79 Handling fees for withholding personal income tax 454718.47 398387.36 Other 62310.23 16988.26 Total 12340535.46 22969158.29 68.Net exposure hedge gains In RMB Item Current period Last period Other explanation: 69.Income of fair value changes In RMB Sources Current period Last period Tradable financial assets -105784.51 Tradable financial liabilities 288486.18 Total 0.00 182701.67 Other explanation: 70.Investment income In RMB 192深圳市深粮控股股份有限公司2024年年度报告全文 Item Current period Last period Long-term equity investment income measured with equity method -3992524.74 3332391.85 Investment income from the disposal of long-term equity investment 2890749.95 Investment income from the disposal of tradable financial assets 2123849.30 Income from financial products 2394668.46 6622492.60 Total 3416742.97 9954884.45 Other explanation: 71.Credit impairment loss In RMB Item Current period Last period Loss of bad debt of accounts receivable -417686.25 -3599093.34 Loss of bad debt of other accounts receivable 643505.99 426721.19 Loss of bad debts of accounts prepaid -59090.80 Total 166728.94 -3172372.15 Other explanation: 72.Asset impairment loss In RMB Item Current period Last period I. Inventory depreciation loss and impairment loss of contract performance -102204026.35 -104336237.13 cost VI. Impairment losses of construction in progress -155050.00 Total -102359076.35 -104336237.13 Other explanation: 73.Income from disposal of assets In RMB Sources Current period Last period Gains from the disposal of non-current assets (disposal group) held for sale 2394378.42 (losses shall be filled in with “-”) Income from the disposal of fixed assets (losses shall be filled in with “-”) 41906.80 Income from the disposal of intangible assets (losses shall be filled in with “-”) 5239932.45 Total 5281839.25 2394378.42 74.Non-operation income In RMB Amount included in the Item Current period Last period current non-recurring gains/losses Government grants 16500.00 16500.00 193深圳市深粮控股股份有限公司2024年年度报告全文 Gains from damage and scrapping of non-current assets 14444.62 51232.64 14444.62 Gains from inventory surplus 3081.80 6062.93 3081.80 No payment required 827455.51 Liquidated damages compensation income 246085.99 1457192.35 246085.99 Other 328634.72 103784.80 328634.72 Total 608747.13 2445728.23 608747.13 Other explanation: 75.Non-operating expenditure In RMB Item Current period Last period Amount included in currentnon-recurring gains/ losses External donations 21613.38 21613.38 Penalty expenses and liquidated damages 13907.66 1291772.38 13907.66 Loss of scrap from inventory 176715.04 176715.04 Loss of scrap from non-current assets 142968.10 105910.32 142968.10 Other 248775.50 403290.79 248775.50 Total 603979.68 1800973.49 603979.68 Other explanation: 76.Income tax expense (1) Income tax expense In RMB Item Current period Last period Current income tax expenses 96132421.18 87781940.01 Deferred income tax expenses -931158.99 -13045542.44 Total 95201262.19 74736397.57 (2) Adjustment process of accounting profit and income tax expenses In RMB Item Current period Total profit 419344869.35 Income tax expenses calculated by statutory/applicable tax rate 62901730.40 Impact from different tax rate applicable with subsidiaries -133122.96 Effect of adjusting income tax in the previous period -973807.22 Impact of non-taxable income -24551943.95 Impact of cost expenses and losses unable to be deducted 22197551.21 Impact of the use of a previously unrecognized deferred income tax asset on deductible losses -6441586.90 Impact of unrecognized deferred income tax assets in current period on deductible temporary differences or deductible losses 51108299.25 Gains/losses of joint ventures and associated enterprises measured with equity method -998131.19 Tax influence of additional deduction of R&D expenditure (filled in with “-”) -2733712.87 Other -5174013.58 Income tax expenses 95201262.19 194深圳市深粮控股股份有限公司2024年年度报告全文 Other explanation: 77. Other comprehensive income Refer to notes for details. 78. Items of cash flow statement (1) Cash received with operating activities concerned Cash received with other operating activities concerned In RMB Item Current period Last period Intercourse funds and deposit 255222055.70 262341355.02 Government grants 6582472.32 13485589.19 Interest income 1446480.80 959189.53 Other 2734551.18 7408191.12 Total 265985560.00 284194324.86 Note of cash paid with other operating activities concerned: Cash paid with other operating activities concerned In RMB Item Current period Last period Intercourse funds and deposit 12.814.346.92 200194238.36 Daily operating expenses 116004859.92 93274316.07 Other 4979022.31 3693027.65 Total 133798229.15 297161582.08 Note of cash paid with other operating activities concerned: (2) Cash with investment activities concerned Cash received with other investment activities concerned In RMB Item Current period Last period External lending recovered 726511.34 Total 0.00 726511.34 Significant cash received with other investment activities concerned: Explanation on cash received with other investment activities concerned： Cash paid with other investment activities concerned In RMB Item Current period Last period Net cash flow from the disposal of subsidiaries 7559395.68 Total 7559395.68 0.00 Significant cash paid with investment activities concerned Cash paid with other operating activities concerned (3) Cash with financing activities concerned Cash received with other financing activities concerned In RMB 195深圳市深粮控股股份有限公司2024年年度报告全文 Item Current period Last period Note of cash received with other financing activities concerned: Cash paid with other financing activities concerned In RMB Item Current period Last period Operating lease paid 21955877.40 20079954.38 Payment of minority shareholder equity 11106589.90 Purchase of minority shareholder equity 28856000.00 3344850.00 Total 50811877.40 34531394.28 Explanation on cash paid with other financing activities concerned: Changes in liabilities arising from financing activities □Applicable □Not applicable In RMB Current increased Current decreased Item Opening balance Cash change Non-cash Cash change Non-cash Ending balance change change Short-term borrow 1223462519.16 3395816991.96 847880.55 3132663497.78 2858792.84 1484605101.05 Lease liabilities 60596042.05 82371703.32 21955877.40 121011867.97 Total 1284058561.21 3395816991.96 83219583.87 3154619375.18 2858792.84 1605616969.02 (4) Cash flow listed at net amount Item Relevant facts Basis for being listed at netamount Financial impact (5) Significant activities and financial impacts that do not involve current cash inflow and outflow but affect the financial condition of the company or may affect the cash flow of the company in the future 79.Supplementary information of cash flow statement (1) Supplementary information of cash flow statement In RMB Supplementary information Current amount Last amount 1. Net profit adjusted to cash flow of operation activities: Net profit 324143607.16 346546867.19 Add: Impairment provision of assets 103280186.26 107508609.28 Depreciation of fixed assets consumption of oil assets and depreciation 132209130.59 111231937.94 of productive biology assets Depreciation of right-of-use assets 5228150.97 22328053.93 Amortization of intangible assets 32504390.74 34397837.54 Amortization of long-term deferred expenses 7307115.11 8660628.62 Loss from the disposal of fixed assets intangible assets and other long- -5294363.80 -2394378.42 term assets (income is listed with “-”) Losses on scrapping of fixedassets (income is listed with “- “) 50779.47 54677.68Loss from change of fair value -182701.67 196深圳市深粮控股股份有限公司2024年年度报告全文(income is listed with “- “)Financial expenses (income is listed with “-”) 76139497.95 39973327.68 Investment loss (income is listed with “-”) -14559424.88 -9954884.45 Decrease of deferred income tax assets (increase is listed with “-”) -419064.89 -15049702.87 Increase of deferred income tax asset ((increase is listed with “-”) -413717.40 2034884.00 Decrease of inventory (increase is listed with “-”) 761631627.99 27253849.60 Decrease of operating receivable accounts (increase is listed with “-”) 1167426765.77 92190867.25 Increase of operating payable accounts (decrease is listed with “-”) -2605796038.83 -178865157.69 Other 1243738.41 Net cash flow arising from operating activities -15317619.38 585734715.61 2. Material investment and financing not involved in cash flow Conversion of debt into capital Convertible company bonds due within one year Financing lease of fixed assets Right-of-use assets 87634760.25 7645189.94 3. Net change of cash and cash equivalents: Ending balance of cash 158935342.85 236745667.10 Less: beginning balance of cash 236745667.10 62254288.58 Add: ending balance of cash equivalents Less: beginning balance of cash equivalents Net increase of cash and cash equivalents -77810324.25 174491378.52 (2) Net cash paid for obtaining subsidiary in the Period In RMB Amount Including: Including Including: Other explanation: (3) Net cash received by disposing subsidiaries in the Period In RMB Amount Net cash or cash equivalents received by disposing subsidiaries in the Period 18619360.20 Including: Wuhan Jiacheng 16360810.20 Zhenpin 2258550.00 Minus: Cash and cash equivalents held by subsidiaries on the day losing control right 7559395.68 Including: Wuhan Jiacheng 3118813.43 Zhenpin 4440552.25 Including: 197深圳市深粮控股股份有限公司2024年年度报告全文 Net cash received from disposing subsidiaries 11059964.52 Other explanation: (4) Component of cash and cash equivalents In RMB Item Ending balance Opening balance I. Cash 158935342.85 236745667.10 Including: Cash on hand 9442.96 11234.32 Bank deposit available for payment at any time 158925899.89 236734432.78 III. Ending balance of cash and cash equivalents 158935342.85 236745667.10 (5) Items with restricted application scope still belong to cash and cash equivalents In RMB Item Current amount Last amount Reason for still belonging tocash and cash equivalents (6) Monetary funds not belonging to cash and cash equivalents In RMB Item Current amount Last amount Reason for not belonging tocash and cash equivalents Monetary funds 9263948.38 5464837.31 Credit deposit litigationpreservation Total 9263948.38 5464837.31 Other explanation: (7) Explanation on other significant activities 80. Notes of changes of owners’ equity Explain the name and adjusted amount in “Other” that have been adjusted to the ending balance of the previous year 81. Foreign currency monetary items (1) Foreign currency monetary items In RMB Item Ending foreign currency balance Convert rate Ending RMB balance converted Monetary fund 5338018.28 Including: USD 170791.46 7.1884 1227822.02 EURO HKD 4438465.14 0.92604 4110196.26 Account receivable 1035374.09 Including: USD 89291.19 7.1884 641860.79 EURO HKD 424947.65 0.92604 393513.30 Long-term borrow 198深圳市深粮控股股份有限公司2024年年度报告全文 Including: USD EURO HKD Other explanation: (2) Explanation on overseas operating entities including disclosure of their main overseas operating location accounting currency and selection criteria for important overseas operating entities. If the accounting currency changes the reasons should also be disclosed.□ Applicable □ Not applicable 82.Lease (1) The company as leaser □Applicable ?Not applicable (2) The company as leasee Operating lease with the company as leasee □Applicable □Not applicable In RMB Including: income related to variable Item Lease income lease payments not included in lease payments Rent housing equipment etc. 149643064.27 Total 149643064.27 Financing lease with the company as lessor □Applicable□Not applicable Annual lease payments not discounted in the next five years □Applicable□Not applicable Adjustment table for lease payment not discounted and net lease investments (3) Recognize gains/losses from financing lease as producer or dealer □Applicable□Not applicable 83.Data resource 84.Others VIII. R&D expenditure In RMB Item Current period Last period 199深圳市深粮控股股份有限公司2024年年度报告全文 1.R&D items that meet capitalization conditions In RMB Current increase Current decrease Item Beginning Recognized Carriedbalance Internal Ending development Other as forward to balance expenditure intangible currentassets gains/losses Total Major capitalized R&D items Items R&D progress Estimated Expected way of generating Starting point of Specific basis for completion time economic benefits capitalization starting capitalization Impairment provision for R&D expenditure In RMB Item Beginning balance Current increase Current decrease Ending balance Impairment test 2. Important outsourced projects under research Item Expected way of generating economic The criteria and specific basis forbenefits determining capitalization or expensing Other explanation: IX. Changes in consolidation range 1. Enterprise combination not under the same control (1) Enterprise combination not under the same control In RMB Ac Time point Cost of Ratio of Acquired Purch Standard to Income of acquiree Net profit of qui for equity equity equity way Equity asing determine the from purchasing acquiree from ree obtained obtained obtained obtained date purchasing date date to period-end purchasing date toway period-end Other explanation: (2) Combination cost and goodwill In RMB Consolidation cost --Cash --Fair value of non-cash assets --Fair value of debts issued or assumed --Fair value of equity securities issued -- Fair value of contingent consideration --Fair value of the equity prior to the purchasing date --Other Total combination cost Less: shares of fair value of identifiable net assets acquired 200深圳市深粮控股股份有限公司2024年年度报告全文 Portion of goodwill/combination cost less than the shares of fair value of identifiable net assets acquired Explanation on the method for determining the fair value of combination costs Explanation on contingent considerations and their changes: Main reasons for the formation of large goodwill Other explanation: (3) Identifiable assets and liabilities of the acquiree on purchasing date In RMB Fair value on purchasing date Book value on purchasing date Assets: Monetary funds Accounts receivable Inventory Fixed assets Intangible assets Liability: Loan Accounts payable Deferred tax liabilities Net assets Less: Minority interests Net assets acquired Determination method for fair value of the identifiable assets and liabilities: Contingent liabilities assumed by the acquiree in enterprise combination: Other explanation: (4) Gains/losses arising from the equity held before purchasing date which are re-measured at fair value Whether there is any transaction that achieves enterprise combination through multiple transactions and obtains control during the reporting period or not □Yes □No (5) Explanation on failing to reasonably determine the combination consideration or the fair value of identifiable assets and liabilities of the acquiree on the purchasing date or at the combination period-end (6) Other explanation 2. Business combination under the same control (1) Business combination under the same control in the Period In RMB Equity Co Standard to Income of the Net profit of the Income of Net profitratio mbi acquiree from the acquiree from the the of the Acquire obtaine Basis of enterprise combination nati determinethe combination combination acquiree acquireee d in under the same control on combination period-begin to period-begin to during the during thecombin dat date the combination the combination comparison comparisonation e date date period period 201深圳市深粮控股股份有限公司2024年年度报告全文 Date Xingy Before the Company's merger 20 acquiring e Food 100.0 with Xingye Food Trading 24 the Tradin 0% Co. Ltd. both were controlled -- g Co. by Shenzhen Agricultural 12 control 127320.37 92048.86 right of 85624.62 Ltd. Power Group Co. Ltd. -24 theacquiree Other explanation: According to the equity transfer agreement between the Company and Shenzhen Agricultural Power Group Co. Ltd. the Company agreed to acquire 100.00% equity of Xingye Food Co. Ltd. held by the latter at the consideration of 4152500.00 yuan.Before this transaction both the Company and Xingye Food were controlled byShenzhen Agricultural Power Group Co. Ltd.making this a business combination under the same control. (2) Combination cost In RMB Combination cost --Cash 4152500.00 -- Book value of non-cash assets -- Book value of debts issued or assumed -- Face value of equity securities issued --Contingent consideration Explanation on contingent consideration and its changes: Other explanation: (3) Book value of the assets and liabilities of the acquiree on combination date In RMB Combination date Ending balance of last period Assets: 4344216.28 4398060.25 Monetary funds 3949901.14 4356180.68 Account receivable 366711.84 14276.27 Inventory Fixed assets 27603.30 27603.30 Intangible assets Liability: Loan Account payable Net assets 4344216.28 4039399.55 Less: Minority interests Net assets acquired 4344216.28 4039399.55 Contingent liability of the combined party assumed by the Company during combination: Other explanation: 202深圳市深粮控股股份有限公司2024年年度报告全文 3. Reverse purchase Basic transaction information basis of counter purchase whether making up business due to the assets and liability reserved by listed company and basis determination of combination cost amount and calculation on adjusted equity by equity transaction: 4. Disposal of subsidiaries Whether there is any situation where a single disposal of investment in a subsidiary result in loss of control or not ?Yes □No In RMB The differenc e between the Method The disposal and main amount price and assumpti of other the share On thedate of Fair value ons for comprehe of the loss of of Gains/los determini nsive subsidiar The remainin ng the income Proportio Disposal Basis for y’s net proportio control g equity ses fair value related to Disposal n of methods determini assets in n of the book in the arising equity price at disposal value of from re- of investme Subsidiar the time at the at the Time of losing ng the the remainin the consolida measure remainin nts in y name of loss of time of time of consolida g equity ted g equity losing control time of ted on the remainin financial ment of in the subsidiari control loss of losingcontrol control financial date of g equity in the statement remainin consolida es control statement loss of on the g equity ted transferre s control consolida at fair d to correspon ted date of value financialloss of statement investme ding to financialstatement control on the nt the date of gains/loss disposal loss of es or of control retained investme earnings nt Accordin g to the equity transfer agreemen t and the condition s for the transfer Zhenpin of Market control Operation 3977261 100.00% Sell 2024-11- the final Technolo .71 30 date for 1506747 gy Co. completin.71 Ltd. g theindustrial and commerci al change is determine d to be the date of loss of control Other explanation: Whether there is any situation where investments in subsidiaries are disposed by steps through multiple transactions and control is lost in the current period or not □Yes □No 5. Other reasons for changes in consolidation range Consolidation scope changes caused by other reasons (eg establish new subsidiaries liquidate subsidiaries) and the related circumstances: 203深圳市深粮控股股份有限公司2024年年度报告全文 6.Other X. Equity in other entities 1. Equity in subsidiaries (1) Membership of enterprise group Shareholdi Register Main ng ratio Subsidiary ed place of Registration place Business nature Dir Indi Acquisition waycapital operation ectl rectl y y 15300100 SZCG 00000. Shenzhen Shenzhe Grain & oil trading .00 Combine under the 00 City n City % same control Hualian Grain 100000 Shenzhen Shenzhe 100.& Oil 000.00 City n City Grain & oil trading 00 Combine under the % same control Shenzhen 30000 Shenzhen Shenzhe 100.Flour 000.00 City n City Flour processing 00 Combine under the % same control Shenliang 100.Quality 80000 Shenzhen Shenzhe Inspection 00 Combine under the Inspection 00.00 City n City % same control Hainan Grain 10000 Haikou Haikou 100.and Oil 000.00 City City Feed production 00 Combine under the % same control Doximi 10000 Shenzhen Shenzhe 100. E-commerce 00 Combine under the000.00 City n City % same control Big Kitchen 10000 Shenzhen Shenzhe Sales and processing of grainoil and 100. 00 Combine under the000.00 City n City relevant products % same control Yingkou 10000 Yingkou Yingkou 100.Storage 00.00 City City Storage 00 Combine under the % same control Cold Chain 10000 Shenzhen Shenzhe 100.Logistic 000.00 City n City On-line operation of fresh food 00 Combine under the % same control Shenliang 95000 Shenzhen Shenzhe Property development and 100.00 Combine under theProperty 00.00 City n City management % same control International 221000 Dongguan Donggua 100. Combine under the Food 000.00 City n City Port operation food production 00% same control Dongguan 100000 Dongguan Donggua 100.Grain and Oil 000.00 City n City Food production 00 Combine under the % same control Dongguan 298000 Dongguan Donggua 49.Logistics 000.00 City n City Storage logistics 00 51.0 Combine under the % 0% same control Shuangyashan 100000 Shuangyas Shuangy Construction of food base and 100. 000.00 han City ashan development of related 00 Combine under the City complementary facilities % same control Shenliang 30000 Shenzhen Shenzhe Catering 51.0Hongjun 000.00 City n City 0% Establishment Dongguan 10000 Dongguan Donggua 100.Hualian 000.00 City n City Grain and oil trade 00 Establishment% Shenliang 50000 Shenzhen Shenzhe 100.Property 00.00 City n City Property management 00 Establishment 204深圳市深粮控股股份有限公司2024年年度报告全文 Management % Shenbao 207451 Shenzhen Shenzhe 100 Huacheng 300.00 City n City Manufacturing .00 Establishment% Wuyuan Ju 290000 Shangrao Shangra 100.Fang Yong 000.00 City o City Manufacturing 00 Establishment% Huizhou 60000 Huizhou Huizhou 100 Shenbao 000.00 City City Comprehensive businesses .00 Establishment% Shenshenbao 50000 Shenzhen Shenzhe 100 Investment 000.00 City n City Investment management .00 Establishment% Shenbao Tea 15000 Shenzhen Shenzhe 100.Culture 000.00 City n City Commercial trade 00 Establishment% Shenliang 50000 Hangzhou Hangzho 100 Hongli 000.00 City u City Grain and oil wholesale .00 Establishment% Fuhaitang 10000 Hangzhou Hangzho 100.Catering 00.00 City u City Catering 00 Establishment% Fuhaitang Ecology 20000 Hangzhou Hangzho 100. Business combination 00.00 City u City Tea planting production and sales 00 not under the sameTechnology % control Shenbao Rock 20700 Wuyishan Wuyisha 100.Tea 000.00 City n City Manufacturing 00 Establishment% Pu’er Tea 20000 Pu’er 100.Supply Chain 000.00 Pu’er City City Wholesale business 00 Establishment% Shenliang 30150 100 Food 000.00 Pu’er City Pu’er City Manufacturing .00 Establishment% Huizhou Shenliang 50000 Huizhou Shenzhe 100. 00.00 City n City Wholesale business 00 EstablishmentFood % Hong Hong 100 Xingye Food 500000.00 Kong Kong Wholesale business .00 Business combination (China) (China) % under the same control Explanation on shareholding ratio in subsidiaries different from ratio of voting right: Explanation on the basis for controlling the investee with half or below voting rights held and without controlling the investee or explanation on the basis for not controlling the investee with over half voting rights: Explanation on the basis for control the important structured entities included in the consolidation scope: Basis for determining whether the company is an agent or consignor: Other explanation: (2) Important non-wholly-owned subsidiary In RMB Shareholding ratio of Gains/losses Dividend announced toSubsidiary Ending equity ofminority shareholders attributable to minority distribute for minorityin the Period in the Period minority Explanation on the situation where the shareholding ratio of minority shareholders is different from the voting right ratio of minority shareholders: Other explanation: 205深圳市深粮控股股份有限公司2024年年度报告全文 (3) Main financial information of the important non-wholly-owned subsidiaries In RMB Ending balance Opening balance Subsi Curre Non- Total Current Non- Total Curre Non- Current Non- Totaldiary nt current assets liabiliti current liabilit nt current Total assets liabiliti current liabilitassets assets es liabilities ies assets assets es liabilities ies In RMB Current Period Last Period Subsi Operating Net Total Cash flow from Operating Net Totaldiary Cash flow fromrevenue profit comprehensiveincome operation activity revenue profit comprehensive income operation activity Other explanation: (4) Significant restrictions on the use of enterprise group assets and the repayment of debts of the enterprise group (5) Financial or other support offered to the structured entities included in consolidated financial statements Other explanation: 2. Transactions where the share of owner’s equity in a subsidiary change while the subsidiary is still controlled (1) Explanation on changes in owner’s equity shares in subsidiary (2) Impact of such transaction on equity of minority interests and owners’ equity attributable to parent company In RMB Purchase cost/disposal consideration --Cash --Fair value of non-cash assets Total of purchase cost/disposal consideration Less: Subsidiary’s share of net assets calculated in terms of the proportion of acquired/disposed equity Difference Including: Adjust capital reserve Adjust surplus reserve Adjust undistributed profit Other explanation 3. Equity in joint venture and associated enterprise (1) Important joint venture or associated enterprise Shareholding ratio Accounting Joint treatment on venture/Associ Main place of Registration investment in ated enterprise operation place Business nature Directly Indirectly joint venture and associated enterprise 206深圳市深粮控股股份有限公司2024年年度报告全文 Zhuhai Hengxing Feed Industrial Co. Zhuhai Zhuhai Aquatic fee and animal fee 40.00% Equity method Ltd.Description on situation where the shareholding ratio in joint ventures or associated enterprises is different from the ratio of voting rights: Description on the basis for holding less than 20% of voting rights but having significant influence or holding 20% or more of voting rights but having no significant influence. (2) Main financial information of important joint venture In RMB Ending balance/Current period Opening balance/Last period Current assets Including: cash and cash equivalents Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Minority interests Shareholders’ equity attributable to parent company Share of net assets calculated in terms of shareholding ratio Adjustment items --Goodwill --Unrealized profit of internal trading -- Other Book value of equity investment in joint venture Fair value of the equity investment in joint ventures with public offers concerned Operating revenue Financial expenses Income tax expenses Net profit Net profit of discontinuing operation Other comprehensive income Total comprehensive income Dividends received from joint venture in the period Other explanation 207深圳市深粮控股股份有限公司2024年年度报告全文 (3) Main financial information of important associated enterprises In RMB Ending balance/Current period Opening balance/Last period Shenliang Intelligent Shenliang Intelligent Zhuhai Hengxing Feed Wulian Equity Wulian Equity Industrial Co. Ltd. Investment Fund Zhuhai Hengxing Feed Industrial Co. Ltd. Investment Fund(Shenzhen) Partnership (Shenzhen) Partnership Enterprise (Limited) Enterprise (Limited) Current assets 178447054.01 206533219.54 20506045.15 Non-current assets 20408430.87 22214230.53 34910923.94 Total assets 198855484.88 228747450.07 55416969.09 Current liabilities 89109413.45 115358256.12 170000.00 Non-current liabilities 28373574.24 29663266.41 Total liabilities 117482987.69 145021522.53 170000.00 Net asset 81372497.19 83725927.54 55246969.09 Minority interests Equity attributable to shareholder of parent 81372497.19 83725927.54 55246969.09 company Share of net assets measured in terms of 32548998.88 33490371.02 27082064.25 shareholding Adjustment 175441.24 162764.46 -174.47 --Goodwill --Unrealized profit of internal trading -- Other Book value of equity investment in 32724440.12 33653135.48 27081889.78 associated enterprise Fair value of the equity investment of associated enterprise with public offers concerned Operating revenue 316639653.00 501688075.92 Net profit -3241833.61 8657035.43 754712.78 Net profit of discontinuing operation Other comprehensive income Total comprehensive income -3241833.61 8657035.43 754712.78 Dividends received from associated enterprise in the year Other explanation (4) Summary of financial information of unimportant joint venture and associated enterprises In RMB Ending balance/Current Period Opening balance/Last Period Joint venture: Amount calculated in terms of shareholding ratio Associated enterprise: Total book value of investment 12632448.32 13273901.22 Total amount calculated in terms of 208深圳市深粮控股股份有限公司2024年年度报告全文 shareholding ratio --Net profit -641452.90 -304756.85 --Total comprehensive income -641452.90 -304756.85 Other explanation (5) Major limitation on capital transfer ability to the Company from joint venture or associated enterprise (6) Excess loss occurred in joint venture or associated enterprise In RMB Derecognized losses not Joint venture/Associated Accumulated derecognized recognized in the Period (or Accumulated derecognized enterprise losses net profit enjoyed in the losses at period-end Period) Other explanation (7) Unrecognized commitment related to joint venture investment (8) Intangible liabilities related to joint venture or associated enterprise investment 4. Major joint operation Name Main place ofoperation Registration place Business nature Shareholding ratio/ shares enjoyed Directly In-directly Explanation on situation where shareholding ratio or shares enjoyed in joint operation is different from voting right ratio in joint operation: Explanation on the classification basis of joint operation in case the entity of joint operation is the separate entity: Other explanation 5. Equity in structured entities not included in the scope of consolidated financial statements Explanation: 6. Other XI. Government grant 1. Government grant recognized at report ending in terms of amount receivable □Applicable□Not applicable Reasons for not receiving the expected amount of government grants at the expected time point □Applicable□Not applicable 2.Liabilities involved with government grant □Applicable □Not applicable In RMB 209深圳市深粮控股股份有限公司2024年年度报告全文 Current Amount increase in booked into Amount carried Other Item Opening balance government non-business forward to other changes in Asset/income income in income current Ending balance related grant current period period Deferred income 82819873.24 4057114.25 7673371.50 79203615.99 Asset related 3. Government grant booked into current gains/losses □Applicable □Not applicable In RMB Accounting title Current period Last period Other revenue 10243944.62 14663529.88 Other explanation: XII. Risk related with financial instrument 1. Various risks arising from financial instruments The company’s main financial instruments include monetary funds notes receivable accounts receivable other receivables other current assets trading financial assets other non-current financial assets accounts payable other payables short-term borrowings non-current liabilities due within one year and lease liabilities. The detailed information of various financial instruments has been disclosed in the relevant notes. The risks associated with these financial instruments as well as the risk management policies adopted by the company to reduce these risks are described below. The management of the company manages and monitors these risk exposures to ensure that the aforementioned risks are controlled within a limited range. (1) Risk management objectives and policies The main risks caused by the company’s financial instruments are credit risk liquidity risk and market risk (including exchange rate risk interest rate risk and commodity price risk).The goal of the company’s risk management is to strike an appropriate balance between risk and return striving to reduce the adverse impact of financial risks on our financial performance. Based on this risk management objective the company has developed a risk management policy to identify and analyze the risks we face set appropriate acceptable levels of risks and design corresponding internal control procedures to monitor our risk level. The company will regularly review these risk management policies and related internal control systems to adapt to market conditions or changes in our business activities. The internal audit department of the company also regularly or randomly checks whether the implementation of the internal control system complies with risk management policies.The board of directors is responsible for planning and establishing the company’s risk management structure formulating the company’s risk management policies and related guidelines and supervising the implementation of risk management measures. The company has developed risk management policies to identify and analyze the risks we face. These risk management policies clearly define specific risks and cover various aspects such as market risk credit risk and liquidity risk management. The company regularly evaluates changes in the market environment and our business activities to determine whether to update our risk management policies and systems. The risk management of the company is carried out by relevant departments in accordance with the policies approved by the board of directors. These departments identify evaluate and mitigate related risks through close cooperation with other business departments of the company. 210深圳市深粮控股股份有限公司2024年年度报告全文 the company diversifies investment and business portfolio appropriately to diversify financial instrument risks and reduces risks concentrated in a single industry specific regions or specific counterparties by formulating corresponding risk management policies. 1) Credit risk Credit risk refers to the risk of a financial loss caused by the counter party’s failure to fulfill its contractual obligations.Credit risks of the Company arises mainly from monetary funds note receivable account receivable other receivable.The company’s bank deposits are mainly deposited in state-owned banks and other large and medium-sized listed banks and we anticipate that there is no significant credit risk associated with bank deposits.For notes receivable accounts receivable and other receivables the company has established relevant policies to control credit risk exposure. The company evaluates the credit qualifications of customers based on their financial status credit records and other factors such as current market conditions and sets corresponding credit periods. The company will regularly monitor customer credit records. For customers with poor credit records we will use written reminders shorten or cancel credit periods etc. to ensure that our overall credit risk is within a controllable range.The debtors of the company’s accounts receivable are customers distributed across different industries and regions. the company continuously conducts credit assessments on the financial condition of accounts receivable and purchases credit guarantee insurance when appropriate.The maximum credit risk exposure that the company is exposed to is the carrying amount of each financial asset on the balance sheet.the company has not provided any other guarantees that may expose the company to credit risk.Among the accounts receivable of the company the accounts receivable of the top five customers account for46.79% of the total accounts receivable of the company (2023: 37.35%); Among the other receivables of the company the other receivables of the top five companies with outstanding amounts account for 45.75% of the total other receivables of the company (2023: 41.44%).On the balance sheet date the book value of the company’s debt investments is listed as follows according to the items in the financial statements: 2) Liquidity risk Liquidity risk refers to the risk of a shortage of funds encountered by the company when fulfilling its obligations to settle cash or other financial assets.When managing liquidity risk the company maintains cash and cash equivalents that the management deems sufficient and monitors them to meet the company’s operational needs and reduce the impact of cash flow fluctuations. The management of the company monitors the use of bank loans and ensures compliance with loan agreements. Simultaneously obtain commitments from major financial institutions to provide sufficient reserve funds to meet both short-term and long-term funding needs.the company raises operating funds through funds generated from business operations and bank loans. At the end of the period the unused bank loan amount of the company was 8798534600.00 yuan (as of the end of last year: 9118765500.00 yuan).At the end of current period the financial liabilities and off-balance sheet guarantee items held by the company were analyzed based on the maturity period of undiscounted remaining contract cash flows (in 10000 yuan): Current ending balance Item Within 1 year 1-3 years Over 3 years Total Financial liabilities: Short-term borrowing 148460.51 148460.51 211深圳市深粮控股股份有限公司2024年年度报告全文 Current ending balance Item Within 1 year 1-3 years Over 3 years Total Accounts payable 39278.71 39278.71 Other accounts payable 26963.35 26963.35 Liabilities held for sale 4292.74 4292.74 Non-current liabilities maturing within one year 804.26 804.26 Lease liabilities - 4838.35 2970.10 7808.45 Total of financial liabilities or contingent liabilities 219799.57 4838.35 2970.10 227608.02 At the end of last period the financial liabilities and off-balance sheet guarantee items held by the company were analyzed based on the maturity period of undiscounted remaining contract cash flows (in 10000 yuan): Last ending balance Item Within 1 year 1-3 years Over 3 years Total Financial liabilities: Short-term borrowing 122346.24 122346.24 Accounts payable 33616.52 33616.52 Other accounts payable 27768.76 27768.76 Liabilities held for sale - financial liabilities 5789.03 5789.03 Non-current liabilities maturing within one year 2280.55 2280.55 Lease liabilities 3692.57 81.93 3774.50 Total of financial liabilities or contingent liabilities 191801.10 3692.57 81.93 195575.60 The amount of financial liabilities disclosed in the above table represents undiscounted contract cash flows which may differ from the carrying amount in the balance sheet.The maximum guarantee amount of a signed guarantee contract does not represent the amount to be paid. 3) Market risk The market risk of financial instruments refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to market price changes including interest rate risk exchange rate risk and other price risks.Interest rate risk Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes in market interest rates. Interest rate risk can arise from both confirmed interest-bearing financial instruments and unconfirmed financial instruments (such as certain loan commitments).Financial liabilities with floating rate expose the company to cash flow interest rate risk while financial liabilities with fixed rate expose the company to fair value interest rate risk. The company determines the relative ratio of fixed and floating rate contracts based on the market environment at that time and maintains an appropriate combination of fixed and floating rate instruments through regular review and supervision.The company closely monitors the impact of interest rate changes on our interest rate risk. The company currently does not adopt an interest rate hedging policy. But the management is responsible for monitoring interest rate risk and will consider hedging significant interest rate risks when necessary. An increase in interest rates will increase the cost of new interest-bearing debt and the interest 212深圳市深粮控股股份有限公司2024年年度报告全文 expenses on floating interest-bearing debt that the company has not yet paid off and will have a significant adverse impact on the company's financial performance. Management will make timely adjustments based on the latest market conditions which may involve arranging interest rate swaps to reduce interest rate risk.The interest-bearing financial instruments held by the company are as follows (unit: 10000 yuan): Item Current amount Last amount Financial instrument with fixed rate Financial liability 148460.51 124683.95 Including: short-term borrowing 148460.51 122346.26 Assets held for sale - short-term borrowing - 2337.69 Total 148460.51 124683.95 (4) Exchange rate risk Exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes in foreign exchange rates. Exchange rate risk may arise from financial instruments denominated in foreign currencies other than the accounting base currency.The exchange rate risk mainly lies in the impact of foreign exchange rate fluctuations on the company's financial position and cash flows. In addition to the subsidiaries established in Hong Kong holding assets denominated in Hong Kong dollars as the settlement currency the company has only a small amount of investment business in the Hong Kong market. The proportion of the company’s foreign currency-denominated assets and liabilities in the overall assets and liabilities is not significant. Therefore the company believes that the exchange rate risk it faces is not significant.The company closely monitors the impact of exchange rate changes on its exchange rate risk. Currently the company has not taken any measures to avoid exchange rate risks. However the management is responsible for monitoring exchange rate risks and will consider hedging significant exchange rate risks when necessary.At the end of the period for the company's monetary funds denominated in foreign currencies assuming that the RMB appreciates or depreciates by 10% against foreign currencies (mainly the USD and HKD) while other factors remain unchanged it will cause an increase or decrease of approximately RMB 716700.00 in both the shareholders’ equity and net profit of the company. (2) Capital management The goal of the company’s capital management policy is to ensure that we can continue to operate provide returns to shareholders and benefit other stakeholders while maintaining the optimal capital structure to reduce capital costs.In order to maintain or adjust its capital structure the company may adjust its financing methods adjust the amount of dividends paid to shareholders return capital to shareholders issue new shares and other equity instruments or sell assets to reduce debt.The company monitors its capital structure based on the asset liability ratio (total liabilities divided by total assets). At the end of the current period the company’s asset liability ratio was 36.21% (34.06% at the end of the last period). 2.Hedge (1) Risk management for hedge business □Applicable□Not applicable 213深圳市深粮控股股份有限公司2024年年度报告全文 (2) The company conducted eligible hedging business and applied hedging accounting In RMB Book value related to Adjustment of Sources of hedge Impact of hedge hedged items and accumulated fair value effectiveness and hedge accounting on the Item hedging instruments hedging included in the ineffectiveness company’s financial recognized book value statements of hedged items Type of hedge risk Type of hedge Other explanation (3) The company carried out hedging business for risk management and expected to achieve risk management goals but has not applied hedge accounting □Applicable□Not applicable 3.Financial assets (1) By transfer manner □Applicable ?Not applicable (2) Financial assets derecognized due to transfer □Applicable ?Not applicable (3) Financial assets which are transferred and involved continuously □Applicable ?Not applicable Other explanation XIII. Disclosure of fair value 1. Ending fair value of the assets and liabilities measured at fair value In RMB Item Ending fair valueFirst-order Second-order Third-order Total I. Sustaining measured at fair value -- -- -- -- Other non-current financial assets 57500.00 57500.00 II. Non-sustaining measured at fair value -- -- -- -- 214深圳市深粮控股股份有限公司2024年年度报告全文 2. Basis for recognizing the market price of items sustaining and non-sustaining measured at fair value on first-order 3.Valuation technique qualitative and quantitative information on major parameters for items sustaining and non-sustaining measured at fair value on second-order 4.Valuation technique qualitative and quantitative information on major parameters for items sustaining and non-sustaining measured at fair value on third-order Content Ending fair value Valuation technology Unobservable input value Equity instrument investment Non-listed equity investment 57500.00 Market method Investment cost 5.Adjustment information and sensitivity analysis of unobservable parameters for items sustaining and non-sustaining measured at fair value on third-order 6. Reasons for conversion and policies for conversion time point of items sustaining measured at fair value in case there is conversion between all levels 7. Changes of valuation technique in the Period and reasons 8. Financial assets and liabilities not measured at fair value The financial assets and financial liabilities measured at amortization cost of the company mainly include: monetary funds notes receivable accounts receivable other receivables short-term borrowings accounts payable other payables etc. The book value of financial assets and financial liabilities not measured at fair value differs very little from their fair value. 9. Other XIV. Related party and related transactions 1. Parent company Registr Registe Ratio of Ratio of voting Parent company ation Business nature red shareholding on right on the place capital the Company Company Shenzhen Shenzh Food distribution platform and safety infrastructure 5000Agricultural Power en construction domestic trade industrial investment million 63.79% 72.02%Group Co. Ltd. and operation etc yuan Explanation on parent company of the Company The ultimate controller of the Company is Shenzhen Municipal People’s Government State-owned Assets Supervision & Administration Commission Other explanation: 215深圳市深粮控股股份有限公司2024年年度报告全文 2. Subsidiaries of the Company For more details of subsidiaries of the Company please refer to “Note VII.1”. 3. Joint venture and associated enterprise of the Company For more details of important joint venture and associated enterprise of the Company please refer to “Note VII (4)”.Other joint venture and associated enterprise that have related transaction with the Company in the Period or that have balance with the Company arising from transaction in last period are described as follows: Joint venture/Associated enterprise Relationship with the enterprise Other explanation 4.Other related party Other related party Relationship between other related party and the company Shenzhen Agricultural Products Group Co. Ltd Holding subsidiary of parent company Shenzhen Zhenchu Supply Chain Co. Ltd. Holding subsidiary of parent company Guangxi Higreen Agricultural Products International Logistics Co. Ltd. Holding subsidiary of parent company Shenzhen Higreen International Agricultural Products Logistic Management Co. Ltd Holding subsidiary of parent company Chengdu Agricultural Products Center Wholesale Market Co.Ltd. Holding subsidiary of parent company Huizhou Higreen Agricultural Products International Logistics Co. Ltd. Holding subsidiary of parent company Shenzhen Medical Materials Co. Ltd. Holding subsidiary of parent company Shenzhen Shennong Land Co. Ltd. Holding subsidiary of parent company Shenzhen Shennong Kitchen Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co. Subsidiary of the Company’s shareholders controlled by the Ltd ultimate controlling party Zhanjiang Haitian Aquatic Feed Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party Shenzhen Higreen Real Estate Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party Shenzhen Southern Agricultural Products Logistics Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party Shenzhen Agricultural Products Small Loan Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party Shenzhen Agricultural Products E-commerce Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party Zhanjiang Haitian Aquatic Feed Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party Directors Managers Chief Financial Officers and Board Secretaries Key executives Yao Jicheng Minority shareholder of controlling subsidiary Zhang Tiejun Spouse of Yao Jicheng a minority shareholder of a controlling subsidiary Wang Zhikai Legal representative and chairman Hu Xianghai Director and GM Zheng Xiangpeng Director Lu Yuhe Director and CFO Zhao Rubing Independent director Bi Weimin Independent director Liu Haifeng Independent director Zheng Shengqiao Employee supervisor 216深圳市深粮控股股份有限公司2024年年度报告全文 Ma Zenghai Employee supervisor Chen Xiaohua Deputy GM and Secretary of the Board of Directors Shen Hua Deputy GM Xiao Hui Deputy GM Du Jianguo Deputy GM Ni Yue Former director Wang Huimin Former chairman of the Supervisory Board Dai Bin Former deputy GM Meng Xiaoxian Former deputy GM Other explanation: 5. Related transaction (1) Goods purchasing labor service providing and receiving Goods purchasing/labor service receiving In RMB Related party Related transaction Current Period Approved Whether more Last Period content transaction limit than the transaction limit (Y/N) Shenzhen Information software Shenyuan Data development 8670750.00 8670750.00 N 16241326.17 Tech. Co. Ltd Shenzhen Procurement of goods Shennong Kitchen 2844421.97 2844421.97 2270681.12 Co. Ltd F.Q.T 73260.00 73260.00 Xi'an Moer Agricultural 17286.56 17286.56 Products Co. Ltd Shenzhen Warehousing Shenliang Cold services/Transportation Transport Co. services N 297749.51 Ltd.Shenzhen Warehousing service Municipal People’s Government State- owned Assets 23510737.60 Supervision & Administration Commission Goods sold/labor service providing In RMB Related party Content of related transaction Current period Last period content Shenzhen Zhenchu Supply Grain and oil sales asset 1066771.53 1769540.05 Chain Co. Ltd. management tea sales Huizhou Higreen Agricultural Product sales 533883.17 0.00 Products International Logistics Co. Ltd.Shenzhen Zhenpin Group Co. Product sales 429377.89 Ltd Shenzhen Shennong Kitchen Grain and oil sales tea sales 253069.73 767892.60 Co. Ltd Shenzhen Guangming Higreen Product sales 99980.00 Agricultural Products Industry Development Co. Ltd 217深圳市深粮控股股份有限公司2024年年度报告全文 Shenzhen Shenliang Cold Grain sales warehousing 98874.41 1006521.86 Transport Co. Ltd. services tea sales Chengdu Agricultural Product sales 75823.00 Products Center Wholesale Market Co. Ltd.Shenzhen Higreen Product sales 50499.00 Agricultural Products Food Import and Export Trade Service Co. Ltd Shenzhen Shennong Kitchen Product sales 48349.65 Co. Ltd Xi'an Moer Agricultural Product sales 38867.25 Products Co. Ltd Shenzhen Agricultural Science Product sales 35815.00 and Technology Innovation Group Co. Ltd Changzhou Shenbao Chacang Product sales 28301.89 E-business Co. Ltd.Guangxi Higreen International Product sales 25911.50 16481.42 Agricultural Products Logistic Management Co. Ltd Shenzhen Agricultural Product sales 25560.85 26782.29 Products Group Co. Ltd Shenzhen Food Materials Product sales 24540.51 3070581.93 Group Co. Ltd Shenzhen Duoxi Equity Product sales and property 16322.90 20754.69 Investment Fund Management management Co. Ltd.Shenzhen Cabbage Product sales 10364.60 Technology Co. Ltd Shenzhen Southern Product sales 2591.15 Agricultural Products Logistics Co. Ltd Shenzhen Agricultural Product sales 282.36 Products Small Loan Co. Ltd Zhanjiang Changshan Property management 90650.80 (Shenzhen) Ecological Aquaculture Co. Ltd Zhanjiang Haitian Aquatic Property management 33934.65 Feed Co. Ltd Shenzhen Shenyuan Data Product sales 42503.14 Tech. Co. Ltd.Shenzhen Higreen Product sales 12361.06 International Agricultural Products Logistic Management Co. Ltd.Explanation on goods purchasing labor service providing and receiving The related sales of the company are priced on the basis of open bidding and fair market prices. The related procurement of the company is priced on the basis of open bidding and fair market prices. (2) Related trusteeship management/contract & entrust management/outsourcing Trusteeship management/contract: In RMB Client/ Truste Type of Start date of End date of Pricing basis for Earnings of trusteeship Contrac e/Cont trusteeship trusteeship trusteeship earnings of trusteeship management/contract t issuer ractor management/con management/co management/co recognized in currenttract asset ntract ntract management/contract period 218深圳市深粮控股股份有限公司2024年年度报告全文 Related trusteeship management/contract: Entrusted management/outsourcing: In RMB Start Type of date of End Client/contra Trustee/Contr entrusted/o entrust date of Pricing basis ofentrust entrust/outsourcing Entrust/outsourcing expensect issuer actor utsourced ed/out assets source ed/outs expense recognized in current period d ourced Related management/ outsourcing: (3) Related lease The company acts as the lessor: In RMB Lessee Assets Lease income recognized in Lease income recognized intype current period last period Shenzhen Shenyuan Data Technology Co. ltd. Lease ofhouses 407339.97 523988.52 Zhenpin Market Operation Technology Co. Ltd. Lease ofhouses 13609.00 244577.19 The company acts as the lessee: In RMB Variable lease Simplified rental fees payments not Interest expense for short-term leases included in the Rent paid on lease Increased right- and low value asset measurement of liabilities of- use assets Lessor Assetstype leases (if applicable) lease liabilities assumed (if applicable) Current Last Curren Last Current Last Curren Last Curren Last period period t perioperiod d period period t perio t perio period d period d Shenzhen Higreen Internationa l Lease Agricultural of 31542.0 31542.0 31542.00 31542.0 Products house 0 0 0 Logistic s Managemen t Co. Ltd Shenzhen Agricultural Lease Power of 105600.0 Group Co. house 0 0.00 Ltd. s Explanation on related lease (4) Related guarantee The Company acts as the guarantor In RMB Secured party Guarantee amount Guarantee start date Guarantee expiry date Whether the guarantee has been fulfilled The Company acts as the secured party In RMB 219深圳市深粮控股股份有限公司2024年年度报告全文 Guarantor Guarantee amount Guarantee start date Guarantee expiry date Whether the guarantee has been fulfilled Explanation on related guarantee: The company has no related guarantee. (5) Related party’s borrowed funds In RMB Related party Borrowing amount Starting date Maturity date Note Borrowing Lending (6) Assets transfer and debt reorganization of related party In RMB Related party Content of related transaction Current period Last period (7) Remuneration of key executives In RMB Item Current period Last period Remuneration of key executives 9899300.00 10507400.00 (8) Other related transaction 6. Accounts receivable from /payable to related parties (1) Accounts receivable from related parties In RMB Item Related party Ending balance Opening balance Book balance Bad debtsreserve Book balance Bad debts reserve Account receivable Shenzhen Shennong Kitchen Co. Ltd 128634.65 1286.35 272089.00 2720.89 Account receivable Hunan Higreen Supply Chain Co. Ltd 104884.00 1048.84 Account receivable Shenzhen Zhenchu Supply Chain Co. Ltd. 92854.00 928.54 Account Shenzhen Higreen Agricultural Products receivable Food Import and Export Trade Service 46769.40 467.69Co. Ltd Account Shenzhen Agricultural Power Group Co.receivable Ltd. 58028.00 580.28 15884.00 158.84 Account receivable Shenzhen Zhenpin Group Co. Ltd 36784.00 367.84 Account Guangxi Higreen International receivable Agricultural Products Logistic 29280.00 292.80Management Co. Ltd Account Tianjin Higreen Agricultural Products receivable Logistics Co. Ltd 23424.00 234.24 Account Shenzhen Agricultural Science and receivable Technology Innovation Group Co. Ltd 9900.00 99.00 220深圳市深粮控股股份有限公司2024年年度报告全文 Account Shenzhen Agricultural Products Small receivable Loan Co. Ltd 5857.00 58.57 Account Shenzhen Shennong Revitalization Rural receivable Industry Development Co. Ltd 1212.60 12.13 Account Shenzhen Agricultural Products Group receivable Co. Ltd 392.00 3.92 4656.00 46.56 Account Huizhou Higreen Agricultural Products receivable International Logistics Co. Ltd. 204.00 2.04 23220.00 232.20 Account Huaiji County Shennong Modern receivable Agriculture Development Co. Ltd 104.00 1.04 Account receivable Shenzhen Zhenchu Supply Chain Co. Ltd. 437388.10 4420.95 Account Shenzhen Shenliang Cold Transport Co.receivable Ltd. 9882.80 98.83 Account Shenzhen Duoxi Equity Investment Fund receivable Management Co. Ltd. 1123.20 Other account Changzhou Shenbao Chacang E-business receivable Co. Ltd. 24138742.46 22187944.18 24608742.46 22187644.18 Other account Shenzhen Shichumingmen Catering receivable Management Co. Ltd. 1908202.67 1908202.67 1908202.67 1908202.67 Other account receivable Shenzhen Zhenpin Group Co. Ltd 1718711.71 17187.12 Other account receivable Shenzhen Shenyuan Data Tech. Co. Ltd 248742.14 506.29 466800.00 4668.00 Other account Shenzhen Higreen International receivable Agricultural Products Logistic 50000.00 50000.00 Management Co. Ltd Other account Shenzhen Agricultural Power Group Co.receivable Ltd. 26400.00 1001000.00 Other account Zhenpin Market Operation Technology receivable Co. Ltd. 13609.00 Other account Zhanjiang Changshan (Shenzhen) receivable Ecological Aquaculture Co. Ltd 5520.00 5520.00 5520.00 5520.00 Other account Changsha Mawangdui Agricultural receivable Products Co. Ltd. 5000.00 Other account Chengdu Agricultural Products Center receivable Wholesale Market Co. Ltd. 4000.00 Other account Tianjin Higreen Agricultural Products receivable Logistics Co. Ltd 3000.00 Other account receivable Yao Jicheng 463085.35 1702.29 Other account Shenzhen Shenliang Cold Transport Co.receivable Ltd. 10000.00 Other account Shenzhen Duoxi Equity Investment Fund receivable Management Co. Ltd. 2000.00 (2) Accounts payable to related parties In RMB Ending book Opening book Item Related party balance balance Account Shenzhen Shenyuan Data Tech. Co. Ltd 16350.00 87671.67 payable Account Shenzhen Shennong Revitalization Rural Industry Development Co. 40880.51 payable Ltd Account Shenzhen Higreen Agricultural Products Food Import and Export 31680.00 payable Trade Service Co. Ltd Account Huaiji County Shennong Modern Agriculture Development Co. Ltd 24804.00 payable Account Hunan Higreen Supply Chain Co. Ltd 2545.20 payable Account Xi'an Moer Agricultural Products Co. Ltd 9444.00 221深圳市深粮控股股份有限公司2024年年度报告全文 payable Account Ningxia Higreen International Agricultural Products Logistic 967.00 payable Management Co. Ltd Account Shenzhen Municipal People’s Government State-owned Assets 23263563.6023263563.60 payable Supervision & Administration Commission Other account Shenzhen Shennong Kitchen Co. Ltd 296063.14 275000.00 payable Other account Shenzhen Shenyuan Data Tech. Co. Ltd 65400.00 1727021.67 payable Other account Zhanjiang Haitian Aquatic Feed Co. Ltd 20000.00 20000.00 payable Other account Shenzhen Agricultural Power Group Co. Ltd. 146162941.72 146162941.72 payable Other account Shenzhen Duoxi Equity Investment Fund Management Co. Ltd. 41486.00 payable Other account Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co. Ltd 8069454.17 payable 7. Related party commitment 8. Other XV. Share-based payment 1. Overall situation of share-based payment □ Applicable □ Not applicable 2. Share-based payment settled by equity □ Applicable □ Not applicable 3. Share-based payment settled by cash □ Applicable □ Not applicable 4.Share-based payment expense in current period □Applicable□Not applicable 5. Modification and termination of share-based payment Nil 6. Other Nil 222深圳市深粮控股股份有限公司2024年年度报告全文 XVI. Commitment or contingency 1. Important commitments Important commitments on balance sheet date As of December 31 2024 there are no commitments that the company should disclose 2.Contingency (1) Contingency on balance sheet date (1) Contingent liabilities arising from pending litigation and arbitration and their financial impact Target SN Plaintiff Defendant Cause Court (’0000 Progress yuan) Nanshan District Housing and the Futian District 1 Urban-Rural Development SZCG Contract dispute People’s Court of Bureau lawsuit Shenzhen Guangdong 389.88 Pending Province Guangzhou Maritime Zhonggang Construction Group Construction Court of Haizhu 2 Co. Ltd (Zhonggang Dongguan Logistics engineering Construction) contract dispute District Guangzhou 2873.74 Pending lawsuit City GuangdongProvince Zhongji the Futian District 3 GuoliangTrade(Liaoning) Co. Hualian Company SZCG Disputes over People’s Court of Ltd (Zhongji Guoliang) SZCH sales contracts Shenzhen Guangdong 297.31 Pending Province International Food Industrial Park Construction The First People’s 4 Peng Miaosheng Guangdong Yongshen engineering Court of Dongguan Construction Engineering contract dispute City Guangdong 453.50 Pending Co. Ltd Xu Jianqiang lawsuit Province * Contract dispute between Nanshan District Housing and Urban-Rural Development Bureau and Shenzhen Cereals Group In September 2022 the Nanshan District Housing and Urban-Rural Development Bureau initiated legal proceedings against SZCG seeking an order for SZCG to fulfill its obligation by issuing a valid tax-inclusive invoice in the amount of 3898800.00 yuan. In January 2024 the Futian District People's Court of Shenzhen issued a first-instance judgment requiring SZCG to issue the aforementioned tax-inclusive invoice within ten days from the effective date of the judgment. SZCG has filed an appeal and the case is still under trial.* Dispute concerning the construction contract between Zhonggang Construction and Dongguan Logistics In May 2024 Zhonggang Construction filed a lawsuit seeking payment of 28737400.00 yuan from Dongguan Logistics which includes project funds interest and penalties for delay. In July 2024 the Guangzhou Maritime Court rendered a first-instance judgment in favor of Zhonggang Construction ordering Dongguan Logistics to pay RMB 15213100 in project funds plus interest. Both parties have filed appeals with the Guangdong Provincial High Court and the case is pending a hearing.* Dispute regarding the sales contract between Zhongji Guoliang Hualian Grain & Oil SZCG and Shenliang Holdings In July 2023 Zhongji Guoliang initiated legal proceedings seeking the refund of 2725400.00 yuan from Hualian Company in addition to compensation for overdue losses amounting to 247700.00 yuan bringing the total to 2973100.00 yuan. In April 2024 223深圳市深粮控股股份有限公司2024年年度报告全文 the Futian District People’s Court of Shenzhen issued a judgment ordering Hualian Company to refund 2011300.00 yuan to Zhongji Guoliang along with interest. Both Zhongji Guoliang and Hualian Company have appealed the decision. The second- instance hearing was held on November 2024 at the Shenzhen Municipal Intermediate People’s Court in Guangdong Province and the judgment is still pending.* Dispute regarding the construction contract between Peng Miaosheng International Food Yongsheng Construction and Xu Jianqiang In October 2023 Peng Miaosheng filed a lawsuit against Xu Jianqiang Yongsheng Construction and the Dongguan International Food Industry Park seeking the payment of 4535000.00 yuan which includes 4097300.00 yuan for construction labor costs and 437700.00 yuan in interest. Peng Miaosheng requested that Yongsheng Construction be jointly liable for the payment of the full amount and that the Food Industry Park bear responsibility for paying the outstanding project funds of 4097300.00 yuan including interest. The Food Industry Park has argued that the dispute is unrelated to its responsibilities. The case is currently under judicial review. (2) Other contingencies As of December 31 2024 there are no other contingencies that the company should disclose. (2) If the Company has no important contingency need to disclosed explain reasons The Company has no important contingency that need to disclose. 3.Other XVII. Events after balance sheet date 1. Important non-adjustment matters In RMB Reasons of failing to estimate the Item Content Impact on financial status and operation results impact 2.Profit distribution 3. Sales return 4. Other events after balance sheet date On December 30 2024 due to the construction needs of infrastructure supporting facilities projects in Huicheng District Huizhou City Huizhou Shenbao signed the Compensation Agreement for the Recovery of State-owned Land Use Rights with the Natural Resources Bureau of Huicheng District Huizhou City. The latter agreed to recover the state-owned land use rights of 6 pieces of land totaling 126531 square meters owned by Huizhou Shenbao in Dongya Village Ruhu Town Huicheng District; the Natural Resources Bureau of Huicheng District Huizhou City shall pay the total land compensation of 77590200 yuan in a lump sum to Huizhou Shenbao's account before January 21 2025. On January 7 2024 Huizhou Shenbao received the above-mentioned land use right compensation from the Natural Resources Bureau of Huicheng District Huizhou City. Up to now the procedures for canceling the land ownership are still being handled. 224深圳市深粮控股股份有限公司2024年年度报告全文 Except for the above matters as of April 29 2025 the Company has no other post - balance sheet events that should be disclosed.XVIII. Other important events 1. Previous accounting errors correction (1) Retrospective restatement In RMB Items impact during every comparative Content of accounting error correction Procedures Accumulated impact period (2) Prospective application Content of accounting error correction Approval procedure Reasons for adopting the prospective applicable method 2. Debt restructuring 3. Assets exchange (1) Exchange of non-monetary assets (2) Other assets exchange 4. Pension plan 5. Discontinuing operation In RMB Item Revenue Expenses Total Income tax Net Profit of discontinuing operation attributable to owners ofprofit expenses profit parent company Other explanation 6. Branch (1) Recognition basis and accounting policy for reportable branch (2) Financial information for reportable branch In RMB Item Offset between branches Total 225深圳市深粮控股股份有限公司2024年年度报告全文 (3) Explain reasons in case the Company has no branches or is unable to disclose total assets and liabilities of segments (4) Other explanation 7. Other major transaction and events makes influence on investor’s decision 8. Other XIX. Notes to main items of financial statements of parent company 1. Account receivable (1) By aging In RMB Aging Ending book balance Beginning book balance Within 1 year(inclusive) 116870897.62 65714145.99 1-2 years 73272.00 Over 3 years 37305.68 37305.68 Over 5 years 37305.68 37305.68 Total 116981475.30 65751451.67 (2)Accrued bad debts reserve In RMB Ending balance Opening balance Categor Book value Bad debts reserve y Book value Book value Bad debts reserve Book value Amount Ratio Amount Accrued ratio Amount Ratio Amount Accrue d ratio Accoun t receiva ble with bad debts 28453.08 0.02% 28453. 100.00 0.00 28453.08 0.04% 28453. 100.00 0.00 reserve 08 % 08 % accrual on a single basis Includin g: Accoun t receiva ble with bad debts 116953022 99.98 14409. 0.01% 116938612 65722998 99.96 8442.6 65714555 reserve .22 % 28 .94 .59 % 5 0.01%.94 accrual on portfoli o 226深圳市深粮控股股份有限公司2024年年度报告全文 Includin g: Portfoli o of sales 82124.60 0.07% 14409. 17.5528 % 67715.32 144909.60 0.22% 8442.6 5 5.83% 136466.95receiva ble Object- specific 116870897 99.91 0.00 0.00% 116870897 65578088 99.74portfoli .62 % .62 .99 % 0.00 0.00% 65578088.99 o Total 116981475 100.00 42862..30 % 36 0.04% 11693861265751451100.0036895..94.67%730.06% 65714555.94 Accrual of bad debts reserve on single item: 1 In RMB Opening balance Ending balance Name Book balance Bad debtsreserve Book balance Bad debts reserve Accrual ratio Accrual reason Reasonably Accrual of bad provision debts reserve 28453.08 28453.08 28453.08 28453.08 100.00% according to on single item enterpriseaccounting standards Total 28453.08 28453.08 28453.08 28453.08 Make bad debts reserve in terms of portfolio:1 In RMB Name Ending balance Book balance Bad debts reserve Accrual ratio Portfolio of sales receivable 82124.60 14409.28 17.55% Object-specific portfolio 116870897.62 0.00 0.00% Total 116953022.22 14409.28 Explanation on the basis to determine such portfolio: If the bad debts reserve of account receivable is made in accordance with the general model of expected credit losses: □Applicable□Not applicable (3)Bad debts reserve accrued collected or reversal Bad debts reserve accrued in the period: In RMB Amount changed in the period Category Opening balance Ending balance Accrued Collected orreversal Written-off Other Bad debts reserve of account receivable 36895.73 6350.24 383.61 42862.36 Total 36895.73 6350.24 383.61 42862.36 Important bad debts reserve collected or reversal: In RMB Basis and rationality to Enterprise Collected or reversal Reason for reversal Manner of reversal define the accrued ratioof original bad debts reserve (4) Account receivable charged off in the period Unit: RMB 227深圳市深粮控股股份有限公司2024年年度报告全文 Item Amount charged off Including major account receivable charged off: Unit: RMB Enterprise Nature Amount charged off Reason for charged Procedure of Resulted by relatedoff charged off transaction (Y/N) Explanation on account receivable charged off: (5)Top five receivables and contract assets at ending balance by arrears party In RMB Ending Ending balance Ending balance balance of Ratio in total ending Ending balance of bad debt Enterprise of account of contract account balance of account reserves for account receivable receivable assets receivable receivables and contract and impairment provision ofand contract assets contract assets assets 2.Other account receivable In RMB Item Ending balance Opening balance Other account receivable 2123872937.65 1624337855.63 Total 2123872937.65 1624337855.63 (1) Interest receivable 1) By category In RMB Item Ending balance Opening balance 2) Important overdue interest Whether impairment Borrower Ending balance Overdue time Overdue causes occurs and its judgment basis Other explanation: 3)Accrued bad debts reserve □Applicable□Not applicable 4)Bad debts reserve accrued collected or reversal In RMB Amount changed in the period Category Opening balance Collected or Ending balanceAccrued reversal Charged off Other 228深圳市深粮控股股份有限公司2024年年度报告全文 Bad debts reserve Total Important bad debts reserve collected or reversal: In RMB Basis and rationality to Enterprise Collected or reversal Reason for reversal Manner of reversal define the accrued ratioof original bad debts reserve Other explanation: (5) Interest receivable charged off in the period Unit: RMB Item Amount charged off Including major interest receivable charged off: Unit: RMB Enterprise Nature Amount charged off Reason for charged Procedure of Resulted by relatedoff charged off transaction (Y/N) Explanation on interest receivable charged off: Other explanation: (2) Dividend receivable 1) Category In RMB Item (or the invested entity) Ending balance Opening balance 2) Important dividend receivable with aging over one year In RMB Item (or investee) Ending Account Reasons for not Whether impairment occurs and its judgmentbalance aging collection basis 3) Accrued bad debts reserve □Applicable□Not applicable 4) Bad debts reserve accrued collected or reversal Bad debts reserve accrued in the period: In RMB Amount changed in the period Category Opening balance Collected or Ending balanceAccrued reversal Charged off Other Important bad debts reserve collected or reversal: In RMB Enterprise Collected or reversal Reason for reversal Manner of reversal Basis and rationality to define the accrued ratio 229深圳市深粮控股股份有限公司2024年年度报告全文 of original bad debts reserve Other explanation: 5) Dividend receivable charged off in the period Unit: RMB Item Amount charged off Including major dividend receivable charged off: Unit: RMB Reason for charged Procedure of charged Resulted by related Enterprise Nature Amount charged off off off transaction (Y/N) Explanation on those charged off: Other explanation: (3)Other account receivable 1)By nature In RMB Nature Ending book balance Beginning book balance Margin and deposit 5210066.16 1000000.00 Other intercourse funds 2146492606.53 1651168026.40 Total 2151702672.69 1652168026.40 2)By aging In RMB Aging Ending book balance Beginning book balance Within 1 year(inclusive) 770755999.84 314162982.64 1-2 year 162272693.15 1312629466.00 2-3 years 1193798401.94 Over 3 years 24875577.76 25375577.76 Over 5 years 24875577.76 25375577.76 Total 2151702672.69 1652168026.40 3)Accrued bad debts reserve In RMB Ending balance Opening balance Category Book balance Bad debts reserve Book Book balance Bad debts reserve Book Amount Ratio Amount Accrual valueratio Amount Ratio Amount Accrual value ratio Including: Including: Bad debts reserve accrual on single basis Explanation on the basis to determine such portfolio:： 230深圳市深粮控股股份有限公司2024年年度报告全文 Bad debts reserve is made on the basis of the general model of expected credit losses: In RMB Phase I Phase II Phase III Bad debts reserve Expected credit losses Expected credit losses Expected credit losses for the entire duration for the entire duration Total over next 12 months (without credit (with credit impairment impairment occurred) occurred) Balance on Jan. 1 2024 213468.24 27616266.80 27829735.04 Balance on Jan. 1 2024 in the period Balance on Dec. 31 2024213468.2427616266.8027829735.04 Classification basis and bad debts reserve ratio for each stage Changes in book balance with significant changes in the current period's provision for losses □Applicable□Not applicable 4)Bad debts reserve accrued collected or reversal Bad debts reserve accrued in the period: In RMB Amount changed in the period Category Opening balance Ending balance Accrued Collected orreversal Charged off Other Bad debts reserve of other account 27830170.77 435.73 27829735.04 receivable Total 27830170.77 435.73 27829735.04 Important bad debts reserve collected or reversal: In RMB Basis and rationality to Enterprise Collected or reversal Reason for reversal Manner of reversal define the accrued ratioof original bad debts reserve 5) Other account receivable charged off in the period Unit: RMB Item Amount charged off Including major other account receivable charged off: Unit: RMB Reason for charged Procedure of charged Resulted by related Enterprise Nature Amount charged off off off transaction (Y/N) Explanation on other account receivable charged off: 6) Top 5 accounts receivable at ending balance by arrears party In RMB Enterprise Nature Ending Aging Proportion in total other receivables at ending Ending balance of bad debt balance balance (%) reserve 231深圳市深粮控股股份有限公司2024年年度报告全文 7)Those booked into other accounts receivables due to centralized fund management In RMB Other explanation: 3.Long-term equity investment In RMB Ending balance Opening balance Item Book balance Impairmentprovision Book value Book balance Impairment provision Book value Investment in subsidiary 4036688641.37 5500000.00 4031188641.37 4032344425.09 5500000.00 4026844425.09 Total 4036688641.37 5500000.00 4031188641.37 4032344425.09 5500000.00 4026844425.09 (1) Investment in subsidiaries In RMB Current changes (+/ -) Opening Beginning Accrual Ending Investee balance (book balance of Capital of Ending balance balance ofimpairment Additionalvalue) reductio impairme Other (book value) impairmentprovision investment n nt provision provision SZGC 3291415036. 3291415036.82 82 Dongguan Shenliang Logistics 321680000.00 321680000.00 Co. Ltd.Huizhou Shenbao Technolog 60000000.00 60000000.00 y Co. Ltd.Shenzhen Shenbao Huacheng 223228545.91 223228545.91 Technolog y Co. Ltd.Shenzhen Shenshenb ao 50000000.00 50000000.00 Investment Co. Ltd Shenzhen Shenbao - Industrial 0.00 5500000.00 5500000. 0.00 0.00& Trading 00 Co. Ltd Shenzhen Shenliang Food Co. 80520842.36 5500000.5500000. 0080520842.3600 Ltd.Xingye 4344216.Food 28 4344216.28 Total 4026844425. 5500000. 4344216. 0.00 4031188641. 5500000.09 00 28 37 00 232深圳市深粮控股股份有限公司2024年年度报告全文 (2) Investment in associated enterprises and joint venture In RMB Openin Current changes (+/ -) g Cash EndingInvest Opening balance ment Other Oth divide Accrua Ending balance balance of Additi Capit comprehe er nd or l of ofInvestee balance((book impairm onal al gains recogn nsive equi profit impair Ot book impairm value) ent invest reduc income ty annou ment her value) ent provisio ment tion ized provisio under adjustme cha nced provisi n nequity nt nge to onissued I. Joint venture II. Associated enterprise l The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value □Applicable ?Not applicable The recoverable amount is determined on the basis of the present value of expected future cash flows □Applicable□Not applicable Reasons for significant discrepancies between the aforementioned information and the information or external information used in previous years' impairment testing Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the actual situation of the current year (3) Other explanation 4.Operating revenue and operating cost In RMB Current period Last period Item Revenue Cost Revenue Cost Main business 169747663.69 2337079.04 156272744.29 Other business 208390.08 471590.28 275218.36 471590.28 Total 169956053.77 2808669.32 156547962.65 471590.28 Breakdown information of operating income and operating costs: In RMB Contract Branch 1 Branch 2 Total category Revenue Cost Revenue Cost Revenue Cost Revenue Cost Business type Including: Classification by business area Including: 233深圳市深粮控股股份有限公司2024年年度报告全文 Market or customer type Including: Contract types Including: Classification by time of goods transfer Including: Classification by contract duration Including: Classification by sales channel Including: Total Information related to performing obligations: Item Time for Important Nature of the Is it the main The expected The types of performance payment terms goods promised responsible refunds to quality obligations to transfer by person customers borne assurance the company by the company provided by the company and related obligations Other explanation Information related to the transaction price apportioned to the remaining performance obligations: The amount of income corresponding to performing obligations that have been signed at the end of this reporting period but have not yet been fulfilled or have not done with fulfillment is 0.00 yuan among them 0.00 yuan of revenue is expected to be recognized in the year Significant contract changes or significant transaction price adjustments Item Accounting treatment method Impact on income Other explanation: 5. Investment income In RMB Item Current Period Last Period Investment income of long-term equity investment measured with cost method 1209380685.39 303903528.99 Investment income from the disposal of long-term equity investment 1567130.20 Investment income during the holding period of tradable financial assets 2190832.84 3378137.80 Investment income from the disposal of tradable financial assets 2123849.30 Total 1215262497.73 307281666.79 234深圳市深粮控股股份有限公司2024年年度报告全文 6.Others XX. Supplementary information 1. Current non-recurring gains/losses □ Applicable □Not applicable In RMB Item Amount Note Gains/losses from the disposal of non-current asset 5160259.92 Governmental subsidies reckoned into current gains/losses (except for those with normal operation business concerned and conform to the national policies & regulations and are enjoyed according to certain standard 10243944.62 and having a continuous impact on the company’s gains/losses) Gains/losses of assets delegation on others’ investment or management 4518517.76 Net current gains/losses from the business combination under the same control in the period from the beginning of the period to the date of combination 92048.86 Other non-operating income and expenditure except for the aforementioned items 147191.48 Other gains/losses that meet the definition of non-recurring gains/losses 2890749.95 Less: impact on income tax 5545407.55 Impact on minority shareholders’ equity (after-tax) -3125.80 Total 17510430.84 -- Other gains/losses that conform to the definition of non-recurring gains/losses: □ Applicable□ Not applicable The Company does not have other gains/losses that conform to the definition of non-recurring gains/losses.Information on the definition of non-recurring gains/losses listed in the Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Gains/Losses as Recurring Gains/Losses □Applicable □Not applicable 2. ROE and earnings per share Earnings per share Profits during reporting period Weightedaverage ROE Basic earnings per Diluted earnings pershare (RMB/Share) share (RMB/Share) Net profits attributable to common stock stockholders of the Company 6.67% 0.2823 0.2823 Net profits attributable to common stock stockholders of the Company after deducting non-recurring gains/ losses 6.31% 0.2671 0.2671 3. Difference of the accounting data under accounting rules in and out of China (1) Difference of the net profit and net assets disclosed in financial report under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) □ Applicable □Not applicable In RMB Net profit Net asset Current amount Last amount Ending balance Beginning balance 235深圳市深粮控股股份有限公司2024年年度报告全文 Under Chinese GAPP 325309578.52 347739109.06 4919674142.82 4828491503.39 Items and amount adjusted under IAS 1067000.001067000.00 Under IAS 325309578.52 347739109.06 4920741142.82 4829558503.39 (2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles) □ Applicable□Not applicable (3) Explanation on data differences under the accounting standards in and out of China; as for the differences adjustment audited by foreign auditing institute listed name of the institute 4. Other 236