SHENZHEN CEREALS HOLDINGS CO.LTD.SEMI-ANNUAL REPORT 2024

【August 2024】Section I. Important Notice Contents and Interpretation

Board of Directors the board of supervisors all directors supervisors and senior executives

of SHENZHEN CEREALS HOLDINGS CO.LTD. 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 Semi-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 the CNINFO 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 pay attention to read “Risks faced bythe company and corresponding measures” in the report of Section III “ManagementDiscussion and Analysis of the Operation”.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 Company has no plan of cash dividend distributed no cash bonus and capitalizing of

common reserves either carried out.Content

Section I. Important Notice Contents and Interpret... 2

Section II Company Profile and Main Financial Inde... 6

Section III Management Discussion and Analysis of ... 9

Section IV Corporate Governance......................22

Section V. Environmental and Social Responsibility.. 23

Section VI. Important Events........................ 25

Section VII. Changes in Shares and Particulars abo.. 29

Section VIII. Preferred Stock........................34

Section IX. Corporate Bonds..........................35

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 and official copies of all documents which have been disclosed in the reporting period;

3. Original copies of semi-annual report 2024 with signature of the company’s principal.Interpretation

Items Refers to Contents

SZCH/Listed Company /the Company/ Refers to Shenzhen Cereals Holdings Co. Ltd.SZCG Refers to Shenzhen Cereals Group Co. Ltd

Doximi Refers to Shenzhen Shenliang Doximi Business Co. Ltd.Shenzhen Flour Flour 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 Grain and Oil Purchase and Sales Branch of Shenzhen Cereals Group

Refers to

Branch 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 named

Shenzhen Agricultural Power

Shenzhen Food Materials Group Co. Ltd Shenzhen Food Group Co.Group/Food Material Goup/Food Refers to

Ltd and Shenzhen Fude State Capital Operation Co. Ltd. is the

Group/Fude Capital

controlling shareholder of the company

Agricultural Products Refers to Shenzhen Agricultural Products Group Co. Ltd

SIHC Refers to Shenzhen Investment Holdings Co. Ltd.Shenzhen Municipal People’s Government State-owned Assets

Shenzhen SASAC Refers to

Supervision & Administration Commission

CSRC Refers to China Securities Regulation Commission

SSE Refers to Shenzhen Stock Exchange

Grant Thornton Certified Public Accountant LLP(Special General

Grant Thornton CPAs Refers to

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

Legal Representative Wang Zhikai

II. Person/Way to contact

Secretary of the Board Rep. of security affairs

Name Chen Xiaohua Chen Kaiyue Liu Muya

Contact add. 13/F Tower A World Trade Plaza No.9 Fuhong 13/F Tower A World Trade Plaza No.9 FuhongRd. Futian District Shenzhen Rd. Futian District Shenzhen

Tel. 0755-83778690 0755-83778690

Fax. 0755-83778311 0755-83778311

E-mail 000019@slkg1949.com chenky@slkg1949.com liumy@slkg1949.com

III. Other information

1. Company contact information

Has the registered address office address postal code website email address etc. of the company changed during the reporting

period

□ Applicable □Not applicable

The registered address office address postal code website and email address of the company remained unchanged during the

reporting period. Please refer to the 2023 annual report for details.

2. Information disclosure and location

Has the information disclosure and location changed during the reporting period

□ Applicable□ Not applicable

The website and media name and website of the stock exchange where the company disclosed its semi-annual report and the place of

placement of the company’s semi-annual report remains unchanged during the reporting period as detailed in the 2023 annual report.

3. Other relevant information

Is there any change in other relevant information during the reporting period

□ Applicable □Not applicableIV. Main accounting data and financial indexes

Is the Company required to retrospectively adjust or restate prior year’s accounting data

□ Yes □ No

Year-on-year

Amount in current period Amount in last period

increase(+)/decrease(-)

Operating income (RMB) 2416452919.61 2831996801.82 -14.67%

Net profit attributable to

shareholders of the listed 129030850.78 168149768.31 -23.26%

Company (RMB)

Net profit attributable to

shareholders of the listed

Company after deducting 116892371.77 159103953.25 -26.53%

non-recurring gains/losses

(RMB)

Net cash flow arising from

operating activities (RMB) -158531444.41 83503352.21 -289.85%

Basic earnings per share

(RMB/Share) 0.1120 0.1459 -23.24%

Diluted earnings per share

(RMB/Share) 0.1120 0.1459 -23.24%

Weighted average ROE 2.64% 3.47% -0.83%

Ending balance of current Year-on-year

Ending balance of last period

period increase(+)/decrease(-)

Total assets(RMB) 7390257559.37 7398528190.94 -0.11%

Net assets attributable to

shareholder of listed 4723330417.23 4824452103.84 -2.10%

company(RMB)

V.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

Unit: RMB/CNY

Net profit attributable to shareholders of the Net assets attributable to shareholder of listed

listed Company Company

Current period Last period Ending amount Opening amount

Chinese GAAP 168149768.31 237527782.93 4643162339.43 4762973461.81

Items and amount adjusted by IAS

Adjustment for other

payable fund of stock 1067000.00 1067000.00

market regulation

IAS 168149768.31 237527782.93 4644229339.43 4764040461.81

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 periodVI. Items and amounts of non-recurring gains/losses

□Applicable □Not applicable

In RMB

Item Amount Note

Gains/losses from the disposal of non-current asset (including the write-off

6786562.53

that accrued for impairment of assets)

Governmental subsidy reckoned into current gains/losses (except for those

with normal operation business concerned and conform to the national

5536754.37

policies & regulations and are enjoyed according to certain standard and

having a continuous impact on the company’s gains/losses)

Gains/losses of assets delegation on others’ investment or management 3933789.27

Reversal of provision of impairment of accounts receivable which are

435.73

treated with separate depreciation test

Other non-operating income and expenditure except for the aforementioned

-158397.83

items

Less: impact on income tax 3552532.61

Impact on minority shareholders’ equity (after-tax) -2148.29

Total 12548759.75

Other gains/losses items that conform to the definition of non-recurring gains/losses:

□ Applicable□ Not applicable

The Company does not have other gains/losses items 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 the 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 the Recurring Gains/Losses.Section III Management Discussion and Analysis of the

Operation

I. 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 “Taitai Fukou”. 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 Spoonbill tea rice oil drinking water non-staple food and

condiment series etc. and the launch of Yueqiu tea wine continues to enrich the product structure. “Grain Duoxi” rice oil

miscellaneous grains mushroom nut series etc; The launch of “Jin Yue” tea wine continued 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 smart 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; 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” effectively reduces 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 EVA performance appraisal mechanism and

established a result-oriented incentive and restraint assessment mechanism which effectively built the performance culture andstimulated the viability within the enterprise. The company insists on cultivating and advocating the corporate culture with “people-oriented performance 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

“Community Automatic Grain Sales Stations” 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 Beige has established a one-stop distribution service platform serving large end customers providing high-quality and safe

smart group meal food services for group users such as enterprises schools and government institutions. In terms of comprehensive

tea drinking services its subsidiary Shenbao Investment has launched a micro-complex “Cha Mi Xiang Qi” with a combination of

“light drinks” “light food” and “light retail” functions.

(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 the leading level in the grain reserves industry taking the lead in building the warehouse management of

“standardization mechanization informatization and harmlessness” in the industry the self-developed “Grain Logistics InformationSystem (SZCG GLS)” 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 research and development capabilities in the field of food and beverage and gathers leading

technological advantages and equipment systems. The subsidiary Shenbao Huacheng owns the Guandong engineering technology

research center 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 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 industrial 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 nearly one thousand 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

Company 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” and gradually build an

industrial system with complete “rice” + “tea” elements.III. Main business analysis

OverviewThe year 2024 is a crucial phase in the "14th Five-Year Plan" marking a pivotal period for building on past achievements and

setting the stage for future success. The company has thoroughly implemented the spirit of the 20th National Congress of the

Communist Party of China adhering to the principle of pursuing progress while maintaining stability with a strong focus on its core

responsibilities of stabilizing grain production and ensuring supply security. Despite significant macroeconomic challenges and a

volatile market environment the company has maintained its strategic focus promoting integration and collaboration to optimize

resources and maximize efficiency. Innovation remains a top priority with efforts to revitalize existing resources and pursue new

growth opportunities.In the first half of 2024 the company reported operating income of 2.416 billion yuan a year-on-year decrease

of 416 million yuan; total profit was 165 million yuan down 49 million yuan year-on-year and net profit attributable to shareholders

was 129 million yuan a decrease of 39 million yuan compared to the same period last year.

(1) Main business development

In the first half of 2024 the grain and oil sector faced challenges due to a global downturn in grain markets leading to weak

consumer demand. Slow trade resulted in lower sales revenue and gross profit with some products experiencing price inversions.Inventory write-downs further impacted performance falling short of expectations.In response the company focused on ensuring

food security by enforcing strict controls enhancing storage facilities and utilizing digital tools. These efforts ensured high-quality

reserve services stabilizing regional grain security. The company also sought market opportunities partnering with leading firms

across regions and advancing incremental projects. Business units pursued value creation across the supply chain with the oil

company growing packaged oil sales the flour company’s "Feiyu" brand filling a market gap and Shenbao Huacheng achieving

R&D breakthroughs. The smart grain and oil supply chain saw continuous improvement with the Cold Chain Company launching

the "Big Cold Storage" project in partnership with Higreen(Guangming) and Doximi advancing coordination with the Shanghai

Agricultural Products Wholesale Market.

(2) Key project progress

The company continued to enhance the functionality of the Cereals Holdings Grain Trading Platform. The rice processing plant

at the Northeast Grain Base completed its upgrade ensuring smooth production and operations. The development of the grain

logistics hub in Dongguan advanced alongside business growth. The No. 3 berth received several special approvals and the

expansion project for the No. 4 berth was successfully approved and evaluated. Additionally the company launched container

services leading to significant breakthroughs in logistics and transshipment operations.

(3) Other key initiatives

The company has driven high-quality development through innovation focusing on market demand to expand from

"ingredients" to "food products" thereby boosting market competitiveness. In 2024 the company launched innovation and technical

improvement projects advanced the revision of Shenzhen local standards and issued the "Shenzhen Rice Emergency Reserve

Quality Assurance Technical Regulations." Standards and guidelines for the cadmium limit in finished rice were also established. In

the first half of the year the company added three products to its "Zhenpin" certification totaling 68 certified products. The company

was recognized as a "Top 100 Shenzhen Brand" and a "Well-known Shenzhen Brand" at the third Shenzhen Brand Awards and its

"Cereals Quality Archive Digital Management Platform" was named an "Outstanding Digital Transformation Achievement in

Shenzhen 2023." Shenbao Huacheng was appointed as the first Vice President of the Tea and Plant Beverages Branch of the China

Beverage Industry Association contributing to the development of industry standards for tea concentrates and instant tea.Strengthening Foundations and Stimulating Internal Drive. The company continues to advance the construction of a modern

governance system for state-owned enterprises focusing on establishing a mechanism where rights and responsibilities are clearly

defined transparent coordinated and effectively balanced. Governance efficiency has been enhanced by strengthening the control

chain involving the shareholders' meeting board of directors supervisory board and party committee while implementing

independent director system reforms. Organizational efficiency has improved through the optimization of the headquarters' structure

and the continuous establishment and renewal of grassroots organizations. Key initiatives include advancing the selection and

appointment of cadres developing talent building key position pipelines and optimizing the cadre team structure. Management

efficiency has been strengthened by establishing a business analysis linkage mechanism improving weekly meetings and supervisionand deepening the "comprehensive risk management" system with full risk management coverage. Projects like the data middle

platform and digital cockpit have been launched to enhance data governance and supervision. The company remains focused on

safety production reinforcing the primary responsibility of production and operation units and improving the quality management

system.Year-on-year changes in major financial data

In RMB

y-o-y

Current period Last period increase(+)/ Reason for change

decrease(-)

Mainly affected by the grain and oil

Operating market and demand the pace of the

2416452919.61 2831996801.82 -14.67% company's bulk grain and oil trade has

income slowed down resulting in a year-on-year

decrease in sales and revenue.Mainly due to the reduction in bulk trading

Operating cost 1985425763.32 2357438707.57 -15.78% of grain and oil operating costs decreased

year-on-year.Mainly because the costs of port terminals

Sales expense 73460826.96 81081244.08 -9.40% warehousing loading and unloading

decreased year-on-year.Mainly due to the decline in company

performance and a year-on-year decrease

Administration in salary expenses; In addition the

94726723.75 104657015.04 -9.49% company has implemented the “tightexpense living” requirements reduced costs and

increased efficiency resulting in year-on-

year savings in related expenses.The main reason is that the company

Financial

16769853.52 20808115.34 -19.41% optimized its financing channels

expense effectively reduced financing costs and

reduced interest expenses year-on-year.Income tax Mainly due to a decrease in profits the

34204824.86 46217947.45 -25.99% provision for income tax expenses

expense decreased year-on-year.The main reason is that the company

continued to increase its technological

R&D expense 9813271.21 9432745.24 4.03% investment in the deep processing of food

and tea extract and continuously improved

its self-developed capabilities.Cash flows Operating cash flow is mainly used to

arising from purchase grain and oil inventory with a

-158531444.41 83503352.21 -289.85% higher proportion of inventory growth at

operating the end of the period compared to the same

activities period last year.Cash flows Mainly due to a year-on-year decrease in

arising from the idle funds applied to purchase wealth

7279212.52 -255045437.38 102.85% management (large denomination

investing certificates of deposit) this year.activities

Cash flows Mainly due to a decrease in short-term

arising from borrowings compared to last year

-7288740.77 215116463.60 -103.39% resulting in a decrease in cash inflows

financing from borrowing.activities

Net increase of Mainly due to the year-on-year decrease in

cash and cash -158523960.13 47016660.48 -437.17% operating net cash flow.equivalents

There have been significant changes in the component or sources of profits during the reporting period of the company□Applicable □Not applicable

There have been no significant changes in the composition or sources of profits during the reporting period of the company.Component of operating income

In RMB

Current period Last period y-o-y

Amount Ratio in operating Ratio in

increase(+)/decrea

income Amount operating income se(-)

Total operating

2416452919.61100%2831996801.82100%-14.67%

income

By industries

Wholesale and

retail 1516982535.46 62.78% 1970880248.72 69.59% -23.03%

Leasing and

business services 490757531.22 20.31% 487158541.41 17.20% 0.74%

Manufacturing 408712852.93 16.91% 373958011.69 13.21% 9.29%

By products

Grain & oil trading

and processing 1739184083.86 71.97% 2217815907.14 78.31% -21.58%

Grain & oil

storage logistics 427474421.05 17.69% 428675200.44 15.14% -0.28%

and services

Food beverage

and tea processing 186511304.53 7.72% 125895974.09 4.45% 48.15%

Leasing and others 63283110.17 2.62% 59609720.15 2.10% 6.16%

By region

Domestic market 2399676960.09 99.31% 2814438937.19 99.38% -14.74%

Oversea market 16775959.52 0.69% 17557864.63 0.62% -4.45%

Industries products or regions that account for more than 10% of the operating income or operating profit of the Company

□ Applicable □Not applicable

In RMB

y-o-y y-o-y y-o-y

Gross increase(+)/dec increase(+)/dec increase(+)/d

Operating income Operating cost profit rease(-)of rease(-)of ecrease(-)of

ratio operating operating cost gross profit

revenue ratio

By industry

Wholesale and

1516982535.461470984780.743.03%-23.03%-21.37%-2.05%

retail

By product

Grain & oil

trading and 1739184083.86 1692648450.30 2.68% -21.58% -20.11% -1.79%

processing

By region

Domestic

2399676960.091972096485.9417.82%-14.74%-15.87%1.11%

market

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 applicableIV. Analysis of non-main business

□Applicable □Not applicable

In RMB

Amount Ratio intotal profit Description of formation

Sustainable

or not(Y/N)

Investment income 3368123.85 2.05% N

Gains/losses of fair

value variation 0.00 0.00% N

Mainly due to the downward trend in prices of some

grain and oil varieties provisions for inventory

depreciation are made on the basis of market prices.Asset impairment -79774391.84 -48.47% When goods for which provisions for inventory N

depreciation have been made the provision for

inventory depreciation withdrawn will be carried

forward to offset current costs.Non-operating

income 72146.65 0.04% N

Non-operating

expense 230544.48 0.14% N

V. Analysis of assets and liabilities

1. Major changes of assets component

In RMB

End of current period End of last financial period

Ratio in Ratio in Ratio

Amount total Amount total changes

Notes of major changes

assets assets

Mainly due to the

distribution of cash

Monetary fund dividends of 231 million81588655.29 1.10% 236384606.60 3.20% -2.10%

yuan to shareholders in

June which reduced

working capital.Mainly due to the increase

Account in revenue from

receivable 249497706.82 3.38% 179828493.98 2.43% 0.95% government reserve grain

and oil services.Contract assets 0.00% 0.00 0.00% 0.00%

Mainly because the

company increased its

Inventory 3719257500.78 50.33% 3458443989.04 46.75% 3.58% inventory of grain and oil

according to business

needs.Investment real

estate 255521705.63 3.46% 263597031.89 3.56% -0.10%

Long-term

equity 72286411.60 0.98% 74008926.48 1.00% -0.02%

investment

Fix assets 2127018321.47 28.78% 2171969725.22 29.36% -0.58%

Construction in

progress 63236301.49 0.86% 51288301.16 0.69% 0.17%

Right-of-use

assets 46685705.34 0.63% 56933148.16 0.77% -0.14%Mainly due to the need to

increase short-term bank

Short-term

loans 1471993682.19 19.92% 1223462519.16 16.54% 3.38% loans for dividends

distribution in June and

operating funds

Contract

liability 93304109.71 1.26% 86566253.73 1.17% 0.09%

Long-term

0.00%0.000.00%0.00%

loans

Lease liability 29266103.49 0.40% 37744951.74 0.51% -0.11%

2.Major oversea assets

□ Applicable□ Not applicable

3. Assets and liabilities measured by fair value

□ Applicable □ Not applicable

In RMB

Changes

of fair Accumula Devaluat

value tive ion of Amount of

Item Beginning gains/los changes of withdra purchase in Amount of sale

Other

chang Endingamount ses in fair value wing inreckoned the the period

in the period es amount

this

period into equity period

Financial

assets

1.Tradable

financial

assets

(excluding 1122347.85 1122347.85

derivative

financial

assets)

5.Other

non-current

financial 57500.00 57500.00

assets

6.Large

fixed 30226849.32 30226849.32

deposit

Aforementi

oned total 31406697.17 31349197.17 57500.00

Financial

liabilities 0.00 0.00

Other change

Are there major changes on measurement attributes for main assets of the Company in reporting period

□ Yes □No

4.The assets rights restricted till end of the period

The details of monetary funds that are restricted in use due to mortgage pledge or freezing restricted in centralized management and

withdrawal of funds and restricted in repatriation of funds placed overseas are as follows:Item Ending balance Ending balance of last period

Guarantee deposit - 1800000.00

Letter of credit deposit 4750000.00 691708.31

Litigation related freezing 2973129.00 2973129.00

Total 7723129.00 5464837.31

VI. Investment analysis

1. Overall situation

□ Applicable □ Not applicable

Investment in reporting period (RMB) Investment in the same period of last year(RMB) Changes (+/-)

1449600.0051638617.14-97.19%

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 applicable

In RMB

Chan

ges in

Book Cumu Profit

Acco fair Curre Book

Short value lative Curre and

Variet Code Initial unting value nt value Acco

form at the fair nt loss Capita

y of of invest measu of the purch at the unting

of begin value sales in the l

securi securi ment remen curren ase end of subjec

securit ning chang amou report source

ties ties cost t t amou the t

ies of the es in nt ing

model profit nt period

period equity period

and

loss

Dome

stic Fair Trada1122 3246 2123 Debt

and 00001 Zhong value ble0.00 measu 347.8 197.1 849.3 0.00 financ rescheovers 7 hua-A

eas remen

duled

5 5 0 ial

stock ts assets

shares

Total 0.00 -- 1122 3246 21230.00 0.00 0.00 0.00 -- --

347.8197.1849.3550

(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.VII. 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

VIII. Analysis of main holding companies and stock-jointly companies

□ Applicable□Not applicable

Particular about main subsidiaries and stock-jointly companies net profit over 10%

In RMB

Compa

ny Type Main business Registercapital Total assets Net assets

Operating Operating

name income profit

Net profit

Shenzh

en Grain & oil

Cereals Subsidi tradingprocessinggrain 1530000 749172105 408721027 214782871 84552049. 50662245.Group ary 000.00 8.13 6.26 6.65 08 80

Co. and oil reserve

Ltd service

Shenzh

en

Hualian - -

Grain Subsidi Grain & oil 1000000 113301022 208235098. 605218995.and Oil ary trading 46882104. 40384788.00.00 9.72 66 26

Trading 22 27

Co.Ltd.Donggu

an Grain & oil

Shenlia

ng Subsidi

trading

ary processingwareh

2980000288730566392620426.371100465.22255674.21467824.

Logisti ouse and 00.00 1.00 48 96 71 54

cs Co. logistics

Ltd.Particular about subsidiaries obtained or disposed in reporting period

□ Applicable □ Not applicableImpact on overall production operation

Ways of acquiring and disposing of

Name of enterprise and performance

subsidiaries during the reporting period

It is expected that it will not have a

Wuhan Jiacheng Biological Products Publicly listed for transfer

significant impact on the company's

Co. Ltd.production operation and performance

Explanation on main holding companies and 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

7491721058.13 yuan and net assets amounted to 4087210276.26 yuan; in the reporting period the operating income net profit

and net profit attributable to shareholder of parent company were 2147828716.65 yuan 50662245.80 yuan and 40479097.74

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 1133010229.72 yuan and net assets amounted to 208235098.66 yuan; in the reporting period

the operating income net profit and net profit attributable to shareholder of parent company were 605218995.26 yuan -

40384788.27 yuan and -40466600.85 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 2887305661 yuan and net assets amounted to 392620426.48 yuan; in the reporting period the operating incomenet profit and net profit attributable to shareholder of parent company were 371100465.96 yuan 21467824.54 yuan and

21467824.54 yuan respectively.

IX. Structured vehicle controlled by the Company

□ Applicable□ Not applicable

X. Risks faced by the company and corresponding measures

1. Risks of price fluctuations in the purchase and sale of grain and oil

The Russia-Ukraine conflict the Middle East war extreme weather and other uncertain external factors have led to significant

fluctuations in the purchase and sale prices of grain and oil at home and abroad and showed a large structural difference. Besides

some countries have implemented controls on the export of agricultural products which directly affected the supply of bulk

agricultural and sideline products and exacerbates fluctuations in grain and oil prices. The aforementioned risks may affect the

company's profitability and may also lead to fluctuations in inventory value.The company will actively respond to the risks of adverse effects of grain and oil price fluctuations on its operations by strengthening

market forecasting establishing strategic cooperation optimizing supply management refining management enhancing internal

collaboration and optimizing product structure in a targeted manner.

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 FoodQuality Safety Management Measures” covering grain and non-grain food categories and their key business processes to align with

the existing company’s business model and diversified 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 on the one hand the company makes overall plans for annual procurement

carefully optimizes procurement channels and ensures sufficient grain supply and orderly supply. On the other hand 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. The

third is to 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.XI. Implementation of the Action Plan for “Double Improvement of Quality and Return”

Does the company disclose Action Plan for “Double Improvement of Quality and Return”

□Yes □NoSection IV Corporate Governance

I. Annual shareholders’ general meeting and extraordinary shareholders’ general meeting

held during the reporting period

1. Annual shareholders’ general meeting during the reporting period

Ratio of

Ordinal number of Type investormeeting participati Date Date of disclosure Resolutions

on

Resolutions of the First

The first Extraordinary General

extraordinary Extraordinary Meeting of Shareholders of

general meeting of general 72.13% 2024-01-09 2024-01-10 2024 (Notice No. 2024-02 )

shareholders of meeting disclosed on CNINFO

2024 website(www.cninfo.com.c

n) on January 10 2024

Resolutions of the Annual

General Meeting of 2023

Annual General

Meeting of 2023 AGM 72.14% 2024-05-07 2023-05-08

(Notice No. 2024-15 )

disclosed on CNINFO

website(www.cninfo.com.c

n) on May 8 2024

2. Request for extraordinary shareholders’ general meeting by preferred stockholders whose voting rights

restore

□ Applicable □Not applicable

II. Changes in directors supervisors and senior officers of the company

□Applicable ? Not applicable

There were no changes in the directors supervisors and senior management of the company during the reporting period as detailed

in the 2023 annual report.III. Profit distribution plan and transfer of capital reserve into share capital

□ Applicable □Not applicable

There are no cash dividend bonus and capitalizing of common reserves carried out in the semi-annual.IV. Implementation of the company’s stock incentive scheme employee stock ownership plan

or other employee incentives

□Applicable □Not applicable

There are no equity incentive plans employee stock ownership plans or other employee incentive measures and their

implementation during the reporting period of the company.Section V. Environmental and Social Responsibility

I. Major environmental issues

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

Not applicable

Measures taken to reduce carbon emissions during the reporting period and their effectiveness

□Applicable ? Not applicable

Reasons for not disclosing other environmental information

Not applicable

The company attaches great importance to environmental protection Each subsidiary has built corresponding facilities to protect

environment according to the actual situation of production and operation. The waste gas dust wastewater and solid waste

generated during the production process are treated to meet the relevant national and local standards for emissions.II. Social responsibility

In the first half of 2024 guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era Cereals Holdings

thoroughly studied and implemented the spirit of the 20th Party Congress and closely followed General Secretary Xi Jinping's

directives on agriculture and rural revitalization. The company focused on the provincial "High-Quality Development Project for

Hundreds of Counties Thousands of Towns and Tens of Thousands of Villages" and the municipal rural revitalization initiatives.Actively fulfilling its social responsibilities Cereals Holdings leveraged its resources to deepen rural revitalization efforts driving

strong development momentum in the supported regions.

1. Strengthening support accountability and deepening rural revitalization

The company's Party Committee placed significant emphasis on rural revitalization making it a key priority. Early in the year a

special meeting was held to plan and implement the 2024 targeted assistance initiatives. Comprehensive research and visits were

conducted to stay informed about the work conditions and mindset of the village-based cadres. Proactive measures including health

check-ups insurance and living allowances were implemented to ensure their well-being and effectively motivate them. In the first

half of 2024 company leaders visited the dispatched cadres once and reviewed six work reports from them.

2. Intensifying support to fully drive rural revitalization in targeted areas

First we drive development through Party building creating strong synergy. To thoroughly implement the provincial “1310”

strategy the company’s Party Committee organized a themed Party Day and joint Party-building activity "Green and Beautiful

Guangdong Cereals in Action" in Shengli Village Tuocheng Town Longchuan which involved voluntary tree planting for rural

greening. Additionally we actively explored empowering the industrial chain through Party building. In collaboration with localpeanut oil processing enterprises in Tuocheng we promoted the establishment of “SZCG Oil Division Support and Co-constructionBase" using a "Party Building Plus" model to support rural revitalization.Second Promoting "Zhenpin" Certification to Access the Greater Bay Area Market. Zhenpin Operations Company a subsidiayr

of SZCH actively engaged in the targeted assistance regions helping local enterprises align their agricultural processing with"Zhenpin" certification standards and requirements. This effort accelerates the standardization branding and scaling of local

agricultural products enabling them to enter the Shenzhen market and beyond. In the first half of 2024 the company assisted five

local enterprises in completing multiple "Zhenpin" certification applications for their agricultural products.Third Integrating Resources to Strengthen and Expand the Industrial Chain. Flour Company a subsidiary of SZCH supported

village-based cadres in forming an agricultural industry consortium by supplying high-quality feed raw materials thereby enhancing

and expanding the industrial chain in targeted assistance areas. In the first half of 2024 the company supplied nearly 80000 pounds

of feed to the planting and breeding alliance including approximately 18000 pounds provided free of charge to members from

previously impoverished households reducing costs in the local specialty farming and breeding industry by nearly 60000 yuan.Additionally with the recent signing of a 100-ton feed supply contract between Dongguan Logistics and a local cooperative the feed

purchasing costs for the alliance are expected to decrease by approximately 350000 yuan.Fourth Mobilizing Broad Social Support to Foster Collective Assistance. The village-based cadres of SZCH in collaboration

with the Haiyezi Tuocheng Rural Revitalization Public Fund implemented targeted assistance efforts. Together with charitable

enterprises and the fund they donated 40 sets of new desks and chairs along with educational and sports supplies to Shengli Primary

School and renovated the school's electrical safety system. They provided long-term scholarships for two orphaned sisters covered

major medical expenses for a veteran couple and actively promoted the creation of public welfare jobs in Tuocheng. By securing

66000 yuan in public welfare funds through county task force quotas they significantly increased the income of five low-income

and vulnerable families helping disadvantaged individuals build better lives.Fifth Deeply Exploring "Rural Industry + Cultural Creativity" for Integrated Development. To enhance Tuocheng's brand

image the village-based cadres of SZCH explored local culture and helped the team design and create a distinctive "Tuocheng" IP. A

series of cultural and creative products including T-shirts and gift bags have been launched and widely adopted locally establishing

a unique regional cultural brand.

3. Strengthening Support Measures to Consolidate and Expand Poverty Alleviation Gains

First Promoting Local Employment and Entrepreneurship for Women Through the Tea Industry. SZCH’ subsidiary Shenbao

Huacheng established Yunnan Black Tea Production Bases in Fengqing County Yongde County and Mangshi City Yunnan

Province. The company's R&D team has consistently provided technical support and guidance in the tea-producing regions of

Yunnan Fujian and Guizhou enhancing the professional skills of tea farmers. This initiative has effectively addressed local

women's employment needs in these areas significantly boosting the income and prosperity of tea farmers.Second Strengthening Production and Marketing Linkages to Boost Farmers' Income and Agricultural Efficiency. In the first

half of 2024 SZCH’ subsidiary Doximi purchased agricultural products from regions like Bama in Guangxi and Luochuan in

Shaanxi covering over ten categories including fruits nuts and grains. The company also launched the "Doximi Assistance Mall"

online platform integrating online and offline channels to deliver farm products directly to urban consumers thus supporting

continuous income growth in areas previously lifted out of poverty.Third Expanding Consumption Assistance to Boost Rural Revitalization. In line with directives from higher authorities SZCH

has continued its consumption assistance efforts by actively mobilizing subsidiaries and grassroots unions to purchase agricultural

products from regions lifted out of poverty. This initiative effectively supports rural revitalization. In the first half of 2024 the

company purchased 4.278 million yuan worth of products through these efforts.Section VI. Important Events

I. Undertakings that the actual controller shareholders related party buyers and the Company have

fulfilled during the reporting period and have not yet fulfilled by the end of reporting period

□ Applicable □ Not applicable

No undertakings that the actual controller shareholders related party buyers and the Company have fulfilled during the reporting

period and have not yet fulfilled by the end of the period

II. Occupation of the non-operational funds of the listed company by controlling shareholders

and its related party

□ Applicable □ Not applicable

No non-operational funds of the listed company have been occupied by the controlling shareholders and its related party in period.III. External guarantee out of the regulations

□ Applicable □ Not applicable

No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPA

Has the semi-annual financial statements been audited

□ Applicable □ Not applicable

The semi-annual report of the company hasn’t been audited.V. Statement on the latest “modified audit report” by BOD

□ Applicable □ Not applicable

VI. Explanation from Board of Directors for “Qualified Opinion” that issued by CPA for last

period

□Applicable □Not applicable

VII. Bankruptcy reorganization

□ Applicable □Not applicable

No bankruptcy reorganization for the Company in reporting period

VIII. Litigation and arbitration

Major litigation and arbitration

□Applicable □Not applicableThere were no major litigation and arbitration in the reporting period.Other litigation and arbitration

?Applicable □Not applicable

Amount Resulting

Lawsuits involved in an Execution

(arbitration) (in 10 accrual Progress

Trial result and of Disclosure Disclosure

thousand liability influence judgment date index

yuan) (Y/N)

As of June 30

2024 other

lawsuits that did The Company

not meet the actively makes use of

disclosure the advantageous

standards for resources of internal

significant Afterlegal affairs and

lawsuits mainly comprehensive

included the external laws firm to analysis the result

following: follow up and deal of the cases It is

disputes over Not7563.99 N with the lawsuit- Not

purchase and sales involved in the activelyrelated cases. At applicable applicable

contract disputes lawsuits will not advancingpresent the Company

over wharf have a significantis responding to and

construction impact on the

contracts dealing with the cases Company

disputes over effectively in

construction accordance with

contracts housing relevant laws and

lease contracts regulations

etc.IX. Penalty and rectification

□ Applicable □ Not applicable

There were no penalty and rectification for the company during reporting period.X. Integrity of the Company its controlling shareholders and actual controllers

□ Applicable □ Not applicable

XI. Major related party transaction

1. Related party transaction involved with daily operation

□Applicable □Not applicable

There were no related party transactions involved with daily operation.

2. Related party transactions of assets or acquisition and sold

□ Applicable □ Not applicable

No related party transactions of assets or equity acquisition and sold occurred during the reporting period3. Related party transactions of mutual investment outside

□ Applicable □Not applicable

No related party transactions of mutual investment outside occurred during the reporting period.

4. Contact of related party credit and debt

□ Applicable □Not applicable

There were no contact of related party credit and debt in the reporting period.

5. Contact with the related finance companies

□ Applicable □ Not applicable

There are no deposits loans credits or other financial business 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 material related party transactions

□Applicable □ Not applicable

There were no other material related party transactions in the reporting period.XII. Significant contract and implementations

1. Trusteeship contract and leasing

(1) Trusteeship

□ Applicable □ Not applicable

No trusteeship occurred during the reporting period

(2) Contracting

□ Applicable □ Not applicable

No contract occurred during the reporting period

(3) Leasing

□ Applicable □ Not applicable

No leasing occurred during the reporting period2. Material guarantees

□Applicable □Not applicable

The company had no material guarantees in the reporting period.

3. Trusted cash asset management

□ Applicable □ Not applicable

In ten thousand yuan

Amount with

impairment

Outstanding accrual for the

Type Capital sources Amount occurred Overdue amount

balance overdue financial

products which has

not been recovered

Financing products

Own funds 28500 0 0 0

of banks

Total 28500 0 0 0

Details of the single major amount or high-risk trust investment with low security or poor liquidity

□ Applicable □Not applicable

It is expected that the principal of entrusted financial management fails to recover or there are other situations leading to impairment

in entrusted financial management

□ Applicable □ Not applicable

4. Other significant contract

□ Applicable □ Not applicable

The company had no other significant contract in the reporting period.XIII. Explanation on other material matters

□Applicable ? Not applicable

The company has no explanation on other material matters.XIV. Material matters of subsidiary of the Company

□ Applicable □ Not applicableSection 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

Bon Capitaliza

New

Proporti us tion of Oth Sub Proporti

Amount shares A mount

on shar public ers total on

issued

es 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 shares 684569567 59.40% 0 0 0 0 0 684569567 59.40%

3. Other domestic

shares 0 0.00% 0 0 0 0 0 0 0.00%

Including: Domestic

legal person’s shares 0 0.00% 0 0 0 0 0 0 0.00%

Domestic

nature person’s shares 0 0.00% 0 0 0 0 0 0 0.00%

4. Foreign shares 0 0.00% 0 0 0 0 0 0 0.00%

Including: Foreign

corporate shares 0 0.00% 0 0 0 0 0 0 0.00%

Overseas

nature person’s share 0 0.00% 0 0 0 0 0 0 0.00%

II. Unrestricted shares 467965687 40.60% 0 0 0 0 0 467965687 40.60%

1. RMB common shares 416216407 36.11% 0 0 0 0 0 416216407 36.11%

2. Domestically listed

foreign shares 51749280 4.49% 0 0 0 0 0 51749280 4.49%

3. Foreign listed foreign

shares 0 0.00% 0 0 0 0 0 0 0.00%

4. Other 0 0.00% 0 0 0 0 0 0 0.00%

III. Total shares 100.00 100.001152535254 0 0 0 0 0 1152535254

%%

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

Progress of the implementation of repurchase share

□Applicable □ Not applicable

Progress of the implementation of reducing buyback shares by means of centralized bidding

□Applicable□Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in last year and period

□ Applicable □ Not applicable

Other information necessary to disclose or need to disclosed under requirement from security regulators

□ Applicable □ Not applicable

2. Changes in restricted shares

□ Applicable□Not applicable

II. Securities issuance and listing

□ Applicable□Not applicable

III. Particulars about shareholders and actual controller of the Company

Unit: Share

Total preference

shareholders with voting

Total common stock rights recovered at end of

shareholders in reporting 44597 last month before annual 0

period-end report disclosed (if

applicable)(refer to Note

8)

Particulars about shares held above 5% by shareholders or top ten shareholders（Excluding shares lent through refinancing）

Information

of shares

Natu Proport Total of pledgedre of common shares Changes in Number of Amount of tagged or

Full name of Shareholders share ion ofshares held at the end reporting restricted unrestricted frozenhold held of reporting period shares held shares held Stater period e of Amou

shar nt

e

State

-

Shenzhen Agriculture and owne Not

Food Investment Holding d 63.79% 735237253 0 669184735 66052518 appli 0

Group Co. Ltd. legal cable

perso

n

State

-

owne Not

Shenzhen Agricultural

d 8.23% 94832294 0 15384832 79447462 appli 0

Products Group Co. Ltd

legal cable

perso

n

Bank of Communications

Co. Ltd. - Invesco Great

Not

Wall CSI Dividend Low Othe

0.82% 9446710 9446710 0 9446710 appli 0

Volatility 100 Exchange r

cable

Traded Open Index

Securities Investment Fund

Dongguan Fruit Dom 0.75% 8698216 0 0 8698216 Not 0Vegetable and Non- staple estic appli

Food Trading Market Co. non- cable

Ltd state-

owne

d

legal

perso

ns

Guotai Junan Securities

Co. Ltd. - Tianhong CSI

Not

Dividend Low Volatility Othe

0.38% 4329900 4329900 0 4329900 appli 0

100 Exchange Traded r

cable

Open Index Securities

Investment Fund

Dom

estic

Not

natur

Sun Huiming 0.32% 3666652 60000 0 3666652 appli 0

e

cable

perso

n

Dom

estic

Not

natur

Lin Junbo 0.32% 3647300 -1852700 0 3647300 appli 0

e

cable

perso

n

Dom

estic

Not

natur

Zhong Zhenxin 0.29% 3295500 0 0 3295500 appli 0

e

cable

perso

n

Dom

estic

Not

natur

Chen Jiuyang 0.26% 2991070 80000 0 2991070 appli 0

e

cable

perso

n

Hong Kong Securities Forei

Clearing Company gn Not

legal 0.26% 2946479 -2506714 0 2946479 appli 0

perso cable

n

Strategy investor or general

legal person becoming the

top 10 shareholders by

placing new shares (if N/A

applicable) (refer to Note

3)

Shenzhen SASAC directly holds 100% equity of Shenzhen Agriculture and Food Investment Holding

Explanation on associated Group Co. Ltd. and holds 34% equity of Shenzhen Agricultural Products Group Co. Ltd. indirectly

relationship among the through Shenzhen Agriculture and Food Investment Holding Group Co. Ltd.; The Company was not

aforesaid shareholders 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 in relation to

delegate/entrusted voting N/A

rights and abstention from

voting rights.Special note on the N/Arepurchase account among

the top 10 shareholders (if

applicable) (refer to note

11)Particular about top ten shareholders with unrestricted shares held（Excluding shares lent through refinancing and shares locked bysenior executives）

Shares held

Shareholders’ name Amount of unrestrictedshares held at Period-end Type Amount

RMB common

Shenzhen Agricultural Products Group Co. Ltd 79447462 79447462

shares

Shenzhen Agriculture and Food Investment Holding Group Co. RMB common

6605251866052518

Ltd. shares

Bank of Communications Co. Ltd. - Invesco Great Wall CSI

RMB common

Dividend Low Volatility 100 Exchange Traded Open Index 9446710 9446710

shares

Securities Investment Fund

Dongguan Fruit Vegetable and Non- staple Food Trading RMB common

86982168698216

Market Co. Ltd shares

Guotai Junan Securities Co. Ltd. - Tianhong CSI Dividend

RMB common

Low Volatility 100 Exchange Traded Open Index Securities 4329900 4329900

shares

Investment Fund

Domestically

Sun Huiming 3666652 listed foreign 3666652

shares

RMB common

Lin Junbo 3647300 3647300

shares

RMB common

Zhong Zhenxin 3295500 3295500

shares

RMB common

Chen Jiuyang 2991070 2991070

shares

RMB common

Hong Kong Securities Clearing Company 2946479 2946479

shares

Explanation of the

association or concerted

action between the top 10

Shenzhen SASAC directly holds 100% equity of Shenzhen Agriculture and Food Investment Holding

shareholders of non-

Group Co. Ltd. and holds 34% equity of Shenzhen Agricultural Products Group Co. Ltd. indirectly

restricted and tradable

through Shenzhen Agriculture and Food Investment Holding Group Co. Ltd.; The Company was not

shares as well as between

aware of any related relationship between other shareholders above and whether they are parties

the top 10 shareholders of

acting in concert as defined by the Acquisition Management Method of Listed Company.non-restricted and tradable

shares and the top 10

shareholders

Explanation on the At the end of reporting period Lin Junbo a shareholder of the company held 3647300 shares of the

participation of the top 10 Company under customer credit trading secured securities account through China Merchants

ordinary shareholders in Securities Co. Ltd. and held 0 shares of the company under common account totally holding

margin trading and 3647300 shares of the Company. During the reporting period shares held by Lin Junbo under the

securities lending business credit trading secured securities account reduced by 1852700 shares shares held by him under

(if any) (see Note 4) common account remained unchanged and shares held by Lin Junbo reduced by 1852700 shares.Shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares

participate in the lending of shares in the refinancing business

□ Applicable□ Not applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared with the previous period

due to the refinancing lending/repayment

□ Applicable□ Not applicable

Whether the top 10 ordinary shareholders and the top 10 shareholders of unrestricted ordinary shares of the Company conducted

agreed repurchase transactions during the reporting period□ Yes □ No

The Company's top 10 ordinary shareholders and the top 10 shareholders of unrestricted ordinary shares did not carry out agreed

repurchase transactions during the reporting period.IV.Changes in shareholding of directors supervisors and senior management

□Applicable □Not applicable

There are no changes in shareholding of directors supervisors and senior management in the reporting period. Refer to 2023 annual

report for details.V. Changes of controlling shareholders or actual controller in reporting period

Changes of controlling shareholders in reporting period

□ Applicable □ Not applicable

There was no change in the company's controlling shareholder during the reporting period.Changes of actual controller in the

reporting period

□ Applicable □ Not applicable

The Company had no changes of actual controller in the reporting period.Section VIII. Preferred Stock

□ Applicable□ Not applicable

The Company had no preferred stock in the Period.深圳市深粮控股股份有限公司 2024 年半年度报告全文

Section IX. Corporate Bonds

□ Applicable□Not applicable

35深圳市深粮控股股份有限公司2024年半年度报告全文

Section X. Financial Report

I. Audit Report

Whether the semi-annual report is audited

□Yes □No

The company's semi-annual financial report has not been audited

II. Financial Statement

Statement in Financial Notes are carried in RMB/CNY

1. Consolidated balance sheet

Prepared by SHENZHEN CEREALS HOLDINGS CO. LTD.June 30 2024

In RMB

Item Ending balance Beginning balance

Current assets:

Monetary funds 81588655.29 236384606.60

Settlement provisions

Capital lent

Tradable financial assets 1122347.85

Derivative financial assets

Note receivable 113932.00

Account receivable 249497706.82 179828493.98

Receivable financing

Accounts paid in advance 68149054.62 17234701.92

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 23652977.28 29127689.89

Including: Interest receivable

Dividend receivable

Buying back the sale of financial

assets

Inventories 3719257500.78 3458443989.04

Including: data source

Contract assets

Assets held for sale 121126137.62

Non-current asset due within one

year

Other current assets 59770157.64 105857923.48

Total current assets 4201916052.43 4149239822.38

Non-current assets:

Loans and payments on behalf

Debt investment

36深圳市深粮控股股份有限公司2024年半年度报告全文

Other debt investment

Long-term account receivable

Long-term equity investment 72286411.60 74008926.48

Investment in other equity

instrument

Other non-current financial assets 57500.00 57500.00

Investment real estate 255521705.63 263597031.89

Fixed assets 2127018321.47 2171969725.22

Construction in progress 63236301.49 51288301.16

Productive biological asset 353770.80 358617.00

Oil and gas asset

Right-of-use assets 46685705.34 56933148.16

Intangible assets 532723888.41 546325555.22

Including: Data resources

Expense on research and

development

Including: Data resources

Goodwill

Long-term expenses to be

apportioned 21705333.36 24694318.05

Deferred income tax asset 61106492.88 52757295.38

Other non-current asset 7646075.96 7297950.00

Total non-current asset 3188341506.94 3249288368.56

Total assets 7390257559.37 7398528190.94

Current liabilities:

Short-term loans 1471993682.19 1223462519.16

Loan from central bank

Capital borrowed

Tradable financial liability

Derivative financial liability

Note payable

Account payable 353377813.98 336165196.80

Accounts received in advance 1503397.55 1084701.60

Contract liability 93304109.71 86566253.73

Selling financial asset of repurchase

Absorbing deposit and interbank deposit

Security trading of agency

Security sales of agency

Wage payable 214147515.65 266214663.20

Taxes payable 61651513.65 86906785.70

Other account payable 269557469.58 277687590.83

Including: Interest payable

Dividend payable 2933690.04 2933690.04

handle fee and commission payable

Reinsurance payable

Liability held for sale 66579828.59

Non-current liabilities due within

one year 20693439.58 22805473.76

Other current liabilities 4029143.68 3896140.56

Total current liabilities 2490258085.57 2371369153.93

Non-current liabilities:

Insurance contract reserve

Long-term loans

Bonds payable

Including: Preferred stock

Perpetual capital securities

37深圳市深粮控股股份有限公司2024年半年度报告全文

Lease liability 29266103.49 37744951.74

Long-term account payable 18183091.89 17994633.05

Long-term wages payable

Accrual liability

Deferred income 82894625.34 82819873.24

Deferred income tax liabilities 10757664.29 10937920.46

Other non-current liabilities

Total non-current liabilities 141101485.01 149497378.49

Total liabilities 2631359570.58 2520866532.42

Owner’s equity:

Share capital 1152535254.00 1152535254.00

Other equity instrument

Including: Preferred stock

Perpetual capital

securities

Capital public reserve 1260757114.42 1260757114.42

Less: Inventory shares

Other comprehensive income

Reasonable reserve 1096481.60 741968.19

Surplus public reserve 483103366.38 483103366.38

Provision of general risk

Retained profit 1825838200.83 1927314400.85

Total owner’ s equity attributable to

parent company 4723330417.23 4824452103.84

Minority interests 35567571.56 53209554.68

Total owner’ s equity 4758897988.79 4877661658.52

Total liabilities and owner’ s equity 7390257559.37 7398528190.94

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

In RMB

Item Ending balance Beginning balance

Current assets:

Monetary funds 4817219.08 149617836.08

Tradable financial assets 1122347.85

Derivative financial assets

Note receivable

Account receivable 109789966.50 65714555.94

Receivable financing

Accounts paid in advance 5476.00 336007.79

Other account receivable 1631458762.44 1624337855.63

Including: Interest receivable

Dividend receivable

Inventories

Including: Data resources

Contract assets

Assets held for sale 21675000.00

Non-current assets maturing within

one year

38深圳市深粮控股股份有限公司2024年半年度报告全文

Other current assets 14424.19 55135837.73

Total current assets 1746085848.21 1917939441.02

Non-current assets:

Debt investment

Other debt investment

Long-term receivables

Long-term equity investments 4026844425.09 4026844425.09

Investment in other equity

instrument

Other non-current financial assets

Investment real estate 15335938.06 15571733.20

Fixed assets 31713701.81 32858541.01

Construction in progress

Productive biological assets 353770.80 358617.00

Oil and natural gas assets

Right-of-use assets

Intangible assets 20504847.78 23006791.89

Including: Data resources

Research and development costs

Including: Data resources

Goodwill

Long-term deferred expenses 1864664.41 2291236.03

Deferred income tax assets 10260054.61 10260054.61

Other non-current assets 4092783.72 3744657.76

Total non-current assets 4110970186.28 4114936056.59

Total assets 5857056034.49 6032875497.61

Current liabilities:

Short-term borrowings 318114877.20

Tradable financial liability

Derivative financial liability

Notes payable

Account payable

Accounts received in advance

Contract liability

Wage payable 35977962.24 31524389.29

Taxes payable 3512229.69 2801152.52

Other accounts payable 852824853.86 1200576358.07

Including: Interest payable

Dividend payable 2933690.04 2933690.04

Liability held for sale

Non-current liabilities due within

one year

Other current liabilities

Total current liabilities 1210429922.99 1234901899.88

Non-current liabilities:

Long-term loans

Bonds payable

Including: Preferred stock

Perpetual capital

securities

Lease liability

Long-term account payable

Long term employee compensation

payable

Accrued liabilities

Deferred income

Deferred income tax liabilities

39深圳市深粮控股股份有限公司2024年半年度报告全文

Other non-current liabilities

Total non-current liabilities

Total liabilities 1210429922.99 1234901899.88

Owners’ equity:

Share capital 1152535254.00 1152535254.00

Other equity instrument

Including: Preferred stock

Perpetual capital

securities

Capital public reserve 3018106568.27 3018106568.27

Less: Inventory shares

Other comprehensive income

Special reserve

Surplus reserve 210698938.24 210698938.24

Retained profit 265285350.99 416632837.22

Total owner’s equity 4646626111.50 4797973597.73

Total liabilities and owner’s equity 5857056034.49 6032875497.61

3. Consolidated profit statement

In RMB

Item 2024 semi-annual 2023 semi-annual

I. Total operating income 2416452919.61 2831996801.82

Including: Operating income 2416452919.61 2831996801.82

Interest income

Insurance gained

handle fee and commission

income

II. Total operating cost 2188865873.82 2582248916.32

Including: Operating cost 1985425763.32 2357438707.57

Interest expense

Handle fee 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

Taxes and surcharge 8669435.06 8831089.05

Sales expense 73460826.96 81081244.08

Administrative expense 94726723.75 104657015.04

R&D expense 9813271.21 9432745.24

Financial expense 16769853.52 20808115.34

Including: Interest

expenses 17092597.32 20495411.83

Interest income 952349.13 315939.31

Add: Other income 8396165.78 5788072.14

Investment income (Loss is

listed with “-”) 3368123.85 2402184.67

Including: Investment income

on affiliated company and joint venture -2195664.82 -705464.09

The termination of

income recognition for financial assets

measured by amortized cost

Exchange income (Loss is

40深圳市深粮控股股份有限公司2024年半年度报告全文

listed with “-”)

Net exposure hedging income

(Loss is listed with “-”)

Income from change of fair

value (Loss is listed with “-”) 174961.34

Loss of credit impairment

(Loss is listed with “-”) -69733.49 670247.23

Losses of devaluation of asset

(Loss is listed with “-”) -79774391.84 -46633952.80

Income from assets disposal

(Loss is listed with “-”) 5219432.33 1587775.37

III. Operating profit (Loss is listed with

“-”)164726642.42213737173.45

Add: Non-operating income 72146.65 338644.53

Less: Non-operating expense 230544.48 195216.49

IV. Total profit (Loss is listed with “-”) 164568244.59 213880601.49

Less: Income tax expense 34204824.86 46217947.45

V. Net profit (Net loss is listed with “-”) 130363419.73 167662654.04

(i) Classify by business continuity

1.continuous operating net profit(net loss listed with ‘-”) 130363419.73 167662654.04

2.termination of net profit (net losslisted with ‘-”)

(ii) Classify by ownership

1.Net profit attributable to owner’s

of parent company 129030850.78 168149768.31

2.Minority shareholders’

gains/losses 1332568.95 -487114.27

VI. Net after-tax of other comprehensive

income

Net after-tax of other comprehensive

income attributable to owners of parent

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

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

Net after-tax of other comprehensive

41深圳市深粮控股股份有限公司2024年半年度报告全文

income attributable to minority

shareholders

VII. Total comprehensive income 130363419.73 167662654.04

Total comprehensive income

attributable to owners of parent 129030850.78 168149768.31

Company

Total comprehensive income

attributable to minority shareholders 1332568.95 -487114.27

VIII. Earnings per share:

(i) Basic earnings per share 0.1120 0.1459

(ii) Diluted earnings per share 0.1120 0.1459

As for the enterprise combined under the same control the net profit achieved by the merged party before combination is 0.00

yuan and the net profit achieved by the merged party in last period is 0.00 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

In RMB

Item 2024 semi-annual 2023 semi-annual

I. Operating income 81710414.30 80465663.56

Less: Operating cost 235795.14 235795.14

Taxes and surcharge 279398.08 226880.22

Sales expenses

Administration expenses 36208920.45 31183573.58

R&D expenses

Financial expenses -19356764.73 -14476713.20

Including: Interest

expenses 1953504.26 1153273.64

Interest income 21577083.48 15881657.87

Add: Other income 154328.97 382620.07

Investment income (Loss is

listed with “-”) 14677769.24 975629.57

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

(Loss is listed with “-”) -113524.84

Loss of credit impairment

(Loss is listed with “-”) 435.73

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 “-”)79175599.3064540852.62

Add: Non-operating income 5000.02

Less: Non-operating expense 16034.73

42深圳市深粮控股股份有限公司2024年半年度报告全文

III. Total Profit (Loss is listed with “-”) 79159564.57 64545852.64

Less: Income tax 24615419.98

IV. Net profit (Net loss is listed with “-”) 79159564.57 39930432.66

(i) continuous operating net profit(net loss listed with ‘-”) 79159564.57 39930432.66

(ii) termination of net profit (netloss listed with ‘-”)

V. Net after-tax of other comprehensive

income

(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 79159564.57 39930432.66

VII. Earnings per share:

(i) Basic earnings per share

(ii) Diluted earnings per share

5. Consolidated cash flow statement

In RMB

Item 2024 semi-annual 2023 semi-annual

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor 2416339686.68 2908830118.57

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

43深圳市深粮控股股份有限公司2024年半年度报告全文

Net cash received from reinsurance

business

Net increase of insured savings and

investment

Cash received from interest handle

fee 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 1931425.08 924811.35

Other cash received concerning

operating activities 1288201410.88 335627204.39

Subtotal of cash inflow arising from

operating activities 3706472522.64 3245382134.31

Cash paid for purchasing

commodities and receiving labor service 2473823154.14 2346304152.82

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 handle fee

and commission

Cash paid for bonus of guarantee

slip

Cash paid to/for staff and workers 182640622.80 238939457.87

Taxes paid 91893885.41 133546738.58

Other cash paid concerning

operating activities 1116646304.70 443088432.83

Subtotal of cash outflow arising from

operating activities 3865003967.05 3161878782.10

Net cash flows arising from operating

activities -158531444.41 83503352.21

II. Cash flows arising from investing

activities:

Cash received from recovering

investment 315621806.51 719000000.00

Cash received from investment

income 5305517.33 2840292.60

Net cash received from disposal of

fixed intangible and other long-term 17286128.50 2048910.70

assets

Net cash received from disposal of

subsidiaries and other units 13241942.62

Other cash received concerning

investing activities

Subtotal of cash inflow from investing

activities 351455394.96 723889203.30

Cash paid for purchasing fixed

intangible and other long-term assets 59176182.44 76150532.92

Cash paid for investment 285000000.00 899000000.00

Net increase of mortgaged loans

Net cash received from subsidiaries

and other units obtained

Other cash paid concerning

investing activities 3784107.76

Subtotal of cash outflow from investing

activities 344176182.44 978934640.68

Net cash flows arising from investing

activities 7279212.52 -255045437.38

III. Cash flows arising from financing

44深圳市深粮控股股份有限公司2024年半年度报告全文

activities:

Cash received from absorbing

investment 490000.00

Including: Cash received from

absorbing minority shareholders’ 490000.00

investment by subsidiaries

Cash received from loans 2045107250.15 1418006020.58

Other cash received concerning

financing activities

Subtotal of cash inflow from financing

activities 2045107250.15 1418496020.58

Cash paid for settling debts 1794353974.79 887417617.78

Cash paid for dividend and profit

distributing or interest paying 245803739.44 306311864.63

Including: Dividend and profit of

minority shareholder paid by subsidiaries

Other cash paid concerning

financing activities 12238276.69 9650074.57

Subtotal of cash outflow from financing

activities 2052395990.92 1203379556.98

Net cash flows arising from financing

activities -7288740.77 215116463.60

IV. Influence on cash and cash

equivalents due to fluctuation in 17012.53 3442282.05

exchange rate

V. Net increase of cash and cash

equivalents -158523960.13 47016660.48

Add: Balance of cash and cash

equivalents at the period -begin 232389486.42 53095469.26

VI. Balance of cash and cash equivalents

at the period-end 73865526.29 100112129.74

6. Cash flow statement of parent company

In RMB

Item 2024 semi-annual 2023 semi-annual

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor 326750573.00 408104768.00

services

Write-back of tax received 193577.27

Other cash received concerning

operating activities 2046639594.59 1220117754.90

Subtotal of cash inflow arising from

operating activities 2373390167.59 1628416100.17

Cash paid for purchasing

commodities and receiving labor service

Cash paid to/for staff and workers 26547520.98 30688663.89

Taxes paid 416585.00 27682272.82

Other cash paid concerning

operating activities 2634761716.00 1162985810.35

Subtotal of cash outflow arising from

operating activities 2661725821.98 1221356747.06

Net cash flows arising from operating

activities -288335654.39 407059353.11

II. Cash flows arising from investing

activities:

Cash received from recovering

investment 265621806.51 279000000.00

Cash received from investment

income 13838029.70 1245793.96

Net cash received from disposal of

45深圳市深粮控股股份有限公司2024年半年度报告全文

fixed intangible and other long-term

assets

Net cash received from disposal of

subsidiaries and other units 16360810.20

Other cash received concerning

investing activities 382533.35

Subtotal of cash inflow from investing

activities 295820646.41 280628327.31

Cash paid for purchasing fixed

intangible and other long-term assets 2600123.18 5580933.36

Cash paid for investment 235000000.00 274000000.00

Net cash received from subsidiaries

and other units obtained

Other cash paid concerning

investing activities 47100000.00

Subtotal of cash outflow from investing

activities 237600123.18 326680933.36

Net cash flows arising from investing

activities 58220523.23 -46052606.05

III. Cash flows arising from financing

activities:

Cash received from absorbing

investment

Cash received from loans 1029128411.85

Other cash received concerning

financing activities

Subtotal of cash inflow from financing

activities 1029128411.85

Cash paid for settling debts 711351213.44 70000000.00

Cash paid for dividend and profit

distributing or interest paying 232463872.40 289587041.21

Other cash paid concerning

financing activities

Subtotal of cash outflow from financing

activities 943815085.84 359587041.21

Net cash flows arising from financing

activities 85313326.01 -359587041.21

IV. Influence on cash and cash

equivalents due to fluctuation in 1188.15

exchange rate

V. Net increase of cash and cash

equivalents -144800617.00 1419705.85

Add: Beginning balance of cash and

cash equivalents 149617836.08 961310.17

VI. Ending balance of cash and cash

equivalents 4817219.08 2381016.02

7. Consolidated statement of changes in owners’ equity

Current period

2024 semi-annual

Owners’ equity attributable to the parent Company

Other

Less Oth Tota

equity instrument : erItem Shar Capi com Rea

Prov Min l

Perp Inve sona Surp isio Reta ority owne Pref etua tal ntor preh ble lus n of ined Oth Subt inter ers’

capi erre l Oth rese y ensi rese rese gene prof er otal ests equi

tal d capi er rve shar ve rve rve ral it tystoc tal es inco riskk secu me

46深圳市深粮控股股份有限公司2024年半年度报告全文

ritie

s

115126483192482532487

I. Balance at 741

the end of 253 075 103 731 445 095 766968.the last year 525 711 366. 440 210 54.6 16519

4.004.42380.853.8488.52

Add:

Changes of

accounting

policy

Error

correction of

the last period

Other

115126483192482532487

II. Balance at 741

the beginning 253 075 103 731 445 095 766968.of this year 525 711 366. 440 210 54.6 16519

4.004.42380.853.8488.52

III. Increase/ - - - -

Decrease in 354 101 101 176 118

reporting

period 513. 476 121 419 763

(Decrease is 41 200. 686. 83.1 669.

listed with “-”) 02 61 2 73

129129130

(i) Total 133

comprehensive 030 030 363256

income 850. 850. 419.8.95

787873

--

(ii) Owners’ 189 189

devoted and

decreased 745 745

capital 52.0 52.0

77

1.Common

shares invested

by

shareholders

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned into

owners equity

with share-

based payment

--

189189

4. Other 745 745

52.052.0

77

---

230230230

(III) Profit

distribution 507 507 507

050.050.050.

808080

1. Withdrawal

of surplus

reserves

2. Withdrawal

of general risk

provisions

3. Distribution

for owners (or - - -

47深圳市深粮控股股份有限公司2024年半年度报告全文

shareholders) 230 230 230

507507507

050.050.050.

808080

4. Other

(IV) Carrying

forward

internal

owners’ equity

1. Capital

reserves

converted to

capital (share

capital)

2. Surplus

reserves

converted to

capital (share

capital)

3. Remedying

loss with

surplus reserve

4．Carry-over

retained

earnings from

the defined

benefit plans

5．Carry-over

retained

earnings from

other

comprehensive

income

6. Other

(V) 354 354 354

Reasonable 513. 513. 513.reserve 41 41 41

1. Withdrawal 836 836 836

in the

reporting 287. 287. 287.period 66 66 66

---

2. Usage in the

reporting 481 481 481

period 774. 774. 774.

252525

(VI)Others

IV. Balance at 115 126 483 182 472 355 475109

the end of the 253 075 103 583 333 675 889

reporting 648525 711 366. 820 041 71.5 798

period 1.604.00 4.42 38 0.83 7.23 6 8.79

In RMB

Last period

In RMB

2023 semi-annual

Owners’ equity attributable to the parent Company

Other Oth

equity instrument Less Tota

: er ProvPerp Min l

Item Shar Capi Inve com

Rea

sona Surp isio RetaPref etua ority owne tal

capi erre l rese ntor

preh ble lus n of ined Oth Subt inter ers’

Oth y ensi rese rese gene prof er otald capi ests equital rve ve

stoc tal er shar inco rve

rve ral it ty

risk

k secu es me

ritie

48深圳市深粮控股股份有限公司2024年半年度报告全文

s

115125439191476695483

I. Balance at 220

the end of the 253 963 624 095 297 117 248301.last year 525 965 164. 408 346 22.4 51870

4.006.65674.791.8104.21

Add: Changes

of accounting

policy

Error

correction of

the last period

Other

115125439191476695483

II. Balance at 220

the beginning 253 963 624 095 297 117 248301.of this year 525 965 164. 408 346 22.4 51870

4.006.65674.791.8104.21

III. Increase/ - - -

Decrease in -172 119 119 119

reporting 281

period 922. 984 811 83942.4

(Decrease is 81 045. 122. 264.

listed with “-”) 619 38 84

(i) Total

comprehensive 149 149 487 662

income 768. 768. 114. 654.

31312704

(ii) Owners’ 490 490

devoted and

decreased 000. 000.capital 00 00

1.Common 490 490

shares invested

by 000. 000.shareholders 00 00

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned into

owners equity

with share-

based payment

4. Other

---

-

288288288

(III) Profit 310

distribution 133 133 16428.1

813.813.841.

9

505069

1. Withdrawal

of surplus 0.00

reserves

---

-

2. Withdrawal 288 288 288

of general risk 310133 133 164

provisions 28.1813. 813. 841.

9

505069

3. Distribution

for owners (or

shareholders)

4. Other

(IV) Carrying

forward

internal

owners’ equity

49深圳市深粮控股股份有限公司2024年半年度报告全文

1. Capital

reserves

converted to

capital (share

capital)

2. Surplus

reserves

converted to

capital (share

capital)

3. Remedying

loss with

surplus reserve

4．Carry-over

retained

earnings from

the defined

benefit plans

5．Carry-over

retained

earnings from

other

comprehensive

income

6. Other

(V) 172 172 172

Reasonable 922. 922. 922.reserve 81 81 81

1. Withdrawal 880 880 880

in the

reporting 675. 675. 675.period 98 98 98

2. Usage in the 707 707 707

reporting 753. 753. 753.period 17 17 17

(VI)Others

IV. Balance at 115 125 439 179 464 694 471393

the end of the 253 963 624 097 316 835 264

reporting 224.525 965 164. 003 233 79.9 591

period 514.00 6.65 67 9.60 9.43 4 9.37

8. Statement of changes in owners’ equity (parent company)

Current period

In RMB

2024 semi-annual

Other Other

equity instrument Less: Total

Item compre Reason Surplu RetainShare Perpet Capital Invent owners

capital Preferr ual reserve ory hensiv able s ed Other ’

ed capital Other shares e reserve reserve profit

stock securiti equityincome

es

I. Balance at 11525 30181 21069 41663 47979

the end of the 35254. 06568. 8938.2 2837.2 73597.last year 00 27 4 2 73

Add: Changes

of accounting

policy

Error

correction of

the last period

Other

50深圳市深粮控股股份有限公司2024年半年度报告全文

II. Balance at 11525 30181 21069 41663 47979

the beginning 35254. 06568. 8938.2 2837.2 73597.of this year 00 27 4 2 73

III. Increase/

Decrease in - -

reporting 15134 15134

period 7486.2 7486.2

(Decrease is

listed with “-”) 3 3

(i) Total

comprehensive 79159 79159

income 564.57 564.57

(ii) Owners’

devoted and

decreased

capital

1.Common

shares invested

by

shareholders

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned into

owners equity

with share-

based payment

4. Other

--

(III) Profit 23050 23050

distribution 7050.8 7050.8

00

1. Withdrawal

of surplus

reserves

--

2. Distribution

for owners (or 23050 23050

shareholders) 7050.8 7050.8

00

3. Other

(IV) Carrying

forward

internal

owners’ equity

1. Capital

reserves

converted to

capital (share

capital)

2. Surplus

reserves

converted to

capital (share

capital)

3. Remedying

loss with

surplus reserve

4．Carry-over

retained

earnings from

the defined

benefit plans

5．Carry-over

retained

earnings from

other

comprehensive

income

51深圳市深粮控股股份有限公司2024年半年度报告全文

6. Other

(V)

Reasonable

reserve

1. Withdrawal

in the

reporting

period

2. Usage in the

reporting

period

(VI)Others

IV. Balance at 11525 30181 21069 26528 46466

the end of the

reporting 35254. 06568. 8938.2 5350.9 26111.period 00 27 4 9 50

Last period

In RMB

2023 semi-annual

Other Other

equity instrument Less: Total

Item Perpet compre Reason Surplu RetainShare Capital Invent owners

capital Preferr ual reserve ory hensiv able s ed Other

ed capital Other ’shares e reserve reserve profit

stock securiti equity

es income

I. Balance at 11525 30181 16721 31345 46513

the end of the 35254. 06568. 9736.5 3835.3 15394.last year 00 27 3 8 18

Add: Changes

of accounting

policy

Error

correction of

the last period

Other

II. Balance at 11525 30181 16721 31345 46513

the beginning 35254. 06568. 9736.5 3835.3 15394.of this year 00 27 3 8 18

III. Increase/

Decrease in - -

reporting 24820 24820

period 3380.8 3380.8

(Decrease is

listed with “-”) 4 4

(i) Total

comprehensive 39930 39930

income 432.66 432.66

(ii) Owners’

devoted and

decreased

capital

1.Common

shares invested

by

shareholders

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned into

owners equity

with share-

based payment

4. Other

(III) Profit - -

distribution 28813 28813

52深圳市深粮控股股份有限公司2024年半年度报告全文

3813.53813.5

00

1. Withdrawal

of surplus

reserves

--

2. Distribution

for owners (or 28813 28813

shareholders) 3813.5 3813.5

00

3. Other

(IV) Carrying

forward

internal

owners’ equity

1. Capital

reserves

converted to

capital (share

capital)

2. Surplus

reserves

converted to

capital (share

capital)

3. Remedying

loss with

surplus reserve

4．Carry-over

retained

earnings from

the defined

benefit plans

5．Carry-over

retained

earnings from

other

comprehensive

income

6. Other

(V)

Reasonable

reserve

1. Withdrawal

in the

reporting

period

2. Usage in the

reporting

period

(VI)Others

IV. Balance at 11525 30181 16721 44031

the end of the 65250

reporting 35254. 06568. 9736.5 12013.454.54

period 00 27 3 34

III. Basic information of Company

1. Company profile

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.The cumulative amount of shares issued by the Company was 1152535254 shares with registered capital of 1152535254.00 yuan.

53深圳市深粮控股股份有限公司2024年半年度报告全文

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.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).

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:

Our 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 V.24 Note V. 29 and Note V 5. 37.

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 June

30 2024 as well as the consolidated and parent company’s operational results and cash flow for the period from January to June

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.

54深圳市深粮控股股份有限公司2024年半年度报告全文

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.

5. Method for determining importance criteria and selection criteria

? Applicable □ Not applicable

Item Importance criteria

Important accounts receivable with single provision for bad debt provision Amount ≥ 10000000

Other accounts receivable with significant single provision for bad debt provision Amount ≥ 5000000

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

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.

55深圳市深粮控股股份有限公司2024年半年度报告全文

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

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

56深圳市深粮控股股份有限公司2024年半年度报告全文

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.

(5) Step by step disposal of equity until loss of control

If the terms conditions and economic impact of various transactions that involve the step-by-step disposal of equity through

multiple transactions until the loss of control meet one or more of the following conditions the Company will treat the multiple

transactions as a package transaction for accounting treatment:

* These transactions were entered into simultaneously or considering mutual influence;

* These transactions as a whole can achieve a complete commercial outcome;

* The occurrence of a transaction depends on the occurrence of at least one other transaction;

* A single transaction may not be economical when viewed separately but it is economical when considered together with other

transactions.In the consolidated financial statements in case of step-by-step disposal of equity until loss of control the remaining equity and the

accounting of gains and losses related to the disposal of equity shall be measured by reference to the accounting treatment for the loss

of control of a subsidiary as described above. Before losing control the difference between the disposal price and the book value of

net asset of the subsidiary corresponding to the disposal investment that has been continuously calculated since the purchase date

shall be treated as follows:

* If it is package deal it is recognized as other comprehensive income and transferred to the gains and losses of the period when

losing control.* If it is not package deal it shall be booked into capital reserve (share premium) as equity transaction and shall not be transferred

to the gains and losses of the period when losing control.

57深圳市深粮控股股份有限公司2024年半年度报告全文

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

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

Our company conducts foreign currency transactions and converts them into the accounting base currency amount at the spot

exchange rate on the transaction date.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.

58深圳市深粮控股股份有限公司2024年半年度报告全文

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:

* 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:

59深圳市深粮控股股份有限公司2024年半年度报告全文

* 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.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.Financial assets are measured at fair value at 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 by the company as expected amount of consideration for the initial recognition amount.

(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

60深圳市深粮控股股份有限公司2024年半年度报告全文

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 are 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

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

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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 Notes 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.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

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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 provision for that receivables. Except for

accounts receivable with individual bad debt provision the company classifies accounts receivable into portfolios based on credit

risk characteristics and calculates bad debt provision on the basis of portfolio.Notes receivable and accounts receivable

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 asses 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 Basis for determining

portfolio portfolio Methods for measuring expected credit losses

Based on historical credit loss experience combined with current conditions and

Bank acceptance bill Bill type predictions of future economic conditions calculate the expected credit loss by

default risk exposure and the expected credit loss rate for the entire duration

Commercial Based on historical credit loss experience combined with current conditions and

acceptance bill Bill type predictions of future economic conditions the expected credit loss is calculated bydefault risk exposure and the expected credit loss rate for the entire duration

B. Accounts receivable

Accounts receivable portfolio Basis for determiningportfolio Methods for measuring expected credit losses

Based on historical credit loss experience combined with current

conditions and predictions of future economic conditions prepare a

Sales receivables portfolio Aging analysis comparison table between the aging of accounts receivable and the

expected credit loss rate for the entire duration and calculate the

expected credit loss

63深圳市深粮控股股份有限公司2024年半年度报告全文

Accounts receivable between Based on historical credit loss experience combined with current

related parties within the conditions and predictions of future economic conditions calculate

Specific object portfolio scope of consolidation and the expected credit loss by default risk exposure and the expected

accounts receivable from credit loss rate for the entire duration. The expected credit loss rate

government departments for the portfolio is 0

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 and the method for measuring expected credit losses as follows:

Other accounts receivable Basis for determining Methods for measuring expected credit losses

portfolio portfolio

Expected portfolio of credit Aging analysis Based on historical credit loss experience calculate the expected

risk characteristics credit loss by default risk exposure and the expected credit loss rate

over the next 12 months or the entire duration

Specific object portfolio Accounts receivable margin Based on historical credit loss experience calculate the expected

deposit and accounts credit loss by default risk exposure and the expected credit loss rate

receivable from government for the next 12 months or the entire duration. The expected credit

departments between related loss rate for this combination is 0

parties within the scope of

consolidation

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 counterparty and risk exposure default risk exposure and expected credit loss rate for the next 12 months or the

entire duration.Aging of the aging portfolio and the expected credit loss rate for the entire duration

Aging Accrual ratio %

Within 1 year (including 1 year) 1.00

1-2 years (including 2 years) 10.00

2-3 years (including 3 years) 30.00

3-5 years (including 5 years) 50.00

Over 5 years 80.00

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;

64深圳市深粮控股股份有限公司2024年半年度报告全文

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.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 write 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 our 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.

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(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.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

66深圳市深粮控股股份有限公司2024年半年度报告全文

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

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

19.Debt investment

20.Other equity 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

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

67深圳市深粮控股股份有限公司2024年半年度报告全文

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

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

68深圳市深粮控股股份有限公司2024年半年度报告全文

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.

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.

23.

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.

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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

Category Method Years of depreciation Scrap value rate Yearly depreciation rate

House and buildings

Production buildings Straight-linedepreciation 20-35 5 2.71-4.75

Non-production Straight-line

buildings depreciation 20-40 5 2.38-4.75

Temporary dormitory Straight-line

and simple room etc. depreciation 5-15 5 6.33-19.00

Gas storage bin Straight-linedepreciation 20 5 4.75

Silo Straight-linedepreciation 50 5 1.9

Wharf and supporting Straight-line

facilities depreciation 50 5 1.9

Machinery equipment Straight-linedepreciation

Other machinery Straight-line

equipment depreciation 10-20 5 4.75-9.50

Warehouse Straight-line

transmission equipment depreciation 20 5 4.75

Transport equipment Straight-linedepreciation 3-10 5 9.50-31.67

Electronic equipment Straight-line

and others depreciation 2-10 5 9.50-47.50

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 and depreciation is accrued starting

from the following month.The method for impairment of assets for construction in progress can be found in Note III.23 of the auditor’s report.

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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;

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* The necessary purchase construction or production activities to bring the assets to their intended usable or saleable state have

already begun.

(2) Classification of biological assets

Biological assets include consumable biological assets productive biological assets and public welfare biological assets. The

biological assets of the company are productive biological assets.* Consumable biological assets

Consumable biological assets refer to biological assets held for sale or harvested in the future as agricultural products. Consumable

biological assets are initially measured at cost. The cost of self cultivation cultivation reproduction or breeding of consumable

biological assets refers to the necessary expenses that can be directly attributed to the asset before canopy closure including

borrowing costs that meet capitalization conditions. The subsequent expenses incurred by consumptive biological assets after closure

are recognized in gains and losses in current period.* 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 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:

Category of productive biological assets Useful life (years) Residual value rate % Annual depreciation rate %

Tea 45 0.00 2.22

Our 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.* Public welfare biological assets

Public welfare biological assets refer to biological assets primarily aimed at protection and environmental protection. Public welfare

biological assets are initially measured at cost. The cost of self created public welfare biological assets refers to the necessary

expenses that can be directly attributed to the asset before closing including borrowing costs that meet capitalization conditions. The

subsequent expenses incurred by public welfare biological assets after closing are recognized in gains and losses in current period.Public welfare biological assets are subsequently measured at cost. Public welfare biological assets are not subject to provision for

asset impairment.The difference between the disposal income from the sale inventory loss death or damage of public welfare biological assets after

deducting their book value and relevant 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 provision for impairment of biological

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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 provision for impairment and the reversed amount should be recognized

in gains and losses in current period.No provision for impairment 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

uncertain useful lives are not amortized.The amortization method for intangible assets with limited service life is as follows:

Item Useful life Basis Amortizationmethod Note

Land use right Amortized the actual rest of life after Certificate of land use right Straight-line

certificate of land use right obtained method

Forest tree use right Service life arranged Protocol agreement Straight-line

method

Trademark use 10 years Actual situation of the Company Straight-line

right 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 Company Straight-line

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.

(2) The collection scope and related accounting treatment methods of R&D expenditure

1. General principles

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

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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.Research stage: The stage of creative and planned investigation and research activities aimed at acquiring and understanding new

scientific or technological knowledge. Development stage: The stage in which research results or other knowledge are applied to a

plan or design to produce new or substantially improved materials devices products and other activities before commercial

production or use.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.

2. Capitalization conditions for specific R&D projects

After the R&D progress meets the following three conditions the project begins to be capitalized: * Technically feasible

theoretically relatively mature preliminary process complete and can be transferred to the actual production stage to further optimize

and improve the process; * The technical achievements of project research and development are feasible and can be applied to the

production or improvement of similar products; * The project technology has the value and possibility of applying for invention

patents and can also be used as proprietary technology of the company.

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

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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

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

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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.

(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

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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.* 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

our 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

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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

* Revenue from sales of goods: The revenue 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.* Income from providing labor services: The company provides dynamic grain and oil reserves and rotation services to the

Shenzhen Municipal Government and recognizes 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.* Other income: The amount of usage fee income shall be calculated and determined in accordance with the charging time and

method stipulated in the relevant contract or agreement; For income from leasing of real estate dock warehouses and other

properties as well as the revenue from dock docking business the property rent revenue and warehousing and logistics revenue shall

be calculated 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

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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 our 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.

39. Government grant

Government grant is recognized when they meet the conditions attached to government grants and can be received. Based on the

essence of economic transactions the company determines whether a certain type of government grant business should be measured

with the total amount method or the net amount method. Normally the company only uses one method for the same or similar

government subsidy businesses and consistently applies this method for that business.Item Accounting content

Government grant measured with total amount method All government grant businesses

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.The policy preferential loans and interest subsidies obtained by the company will be disposed separately based on the following two

situations:

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* The finance department allocates interest subsidy to the lending bank and the lending bank provides loans to the company at a

policy preferential interest rate: 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.* 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:

(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.

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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 initial measurement of lease liabilities is based on the present value of lease payments that have not been paid on the start date of

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 our 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

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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.

(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. Our

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 our 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;

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* 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.

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 2024 and implementation of

relevant financial statement items at the beginning of the year for the first time

□Applicable ?Not applicable

44.Others

Nil

VI.Tax

1. Type of tax and rate for main applicable tax

Taxes Basis Rate

Taxable value-added amount(the tax

payable is calculated by multiplying the

VAT taxable sales amount by the applicable 13.00% 9.00% 6.00% 5.00% 3.00%

tax rate and deducting the input tax that

can be deducted in the current period)

Urban maintenance and construction tax Actually paid turnover tax 7.00% 5.00%

Enterprise income tax Taxable income 25.00% 20.00% 15.00%

Price-based resource tax 1.2 percent of

the remaining value after deducting 20%

Property tax of the original value of the property; 12 1.20% 12.00%

percent of the rental income if levy by

rents.Deed tax When the property right of the real 3.00%-5.00%

83深圳市深粮控股股份有限公司2024年半年度报告全文

property is transferred the contract price

shall be paid to the owner of the property

right in one lump sum

Education surcharge Actually paid turnover tax 3.00%

Local education surcharge Actually paid turnover tax 2.00%

Rate of income tax for different taxpaying body:

Taxpaying body Rate of income tax

Shenzhen Cereals Holdings Co. Ltd. 25.00%

Shenzhen Cereals Group Co. Ltd(hereinafter referred to as “SZCG”) 25.00% some businesses are tax-free

Shenzhen Hualian Grain and Oil Trading Co. Ltd.(hereinafter referred to as

“Hualian Cereals and Oil”) 25.00%

Dongguan Shenliang Hualian Cereals and Oil Trading Co. Ltd(hereinafter

referred to as “Dongguan Hualian”) 25.00%

Shenzhen Shenliang Hongjun Catering Management Co. Ltd.(hereinafter

25.00%

referred to as “Shenliang Hongjun”)

Shenzhen Flour Co. Ltd(hereinafter referred to as “Shenzhen Flour”) 25.00% some businesses are tax-freeShenliang Quality Inspection Co. Ltd. (hereinafter referred to as “ShenliangQuality Inspection”) 20.00%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%

Zhenpin Market Operation Technology Co. Ltd. (hereinafter referred to

25.00%

“Zhenpin Market”)

Shenzhen Shenliang Big Kitchen Food Supply Chain Co. Ltd(hereinafter

referred to as “Big Kitchen”) 25.00%

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 Logistics”) 15.00%

Shenzhen Shenliang Property Development Co. Ltd.(hereinafter referred to as

“Shenliang Property Development”) 25.00%

Shenzhen Shenliang Property Management Co. Ltd. (hereinafter referred to as

“Shenliang Property Management”) 20.00%Dongguan Shenliang Logistics Co. Ltd.(hereinafter referred to as “DongguanLogistics”) 25.00%

Dongguan International Food Industrial Park Development Co. Ltd.(hereinafter

referred to as “International Food”) 25.00%

Dongguan Shenliang Oil & Food Trade Co. Ltd.(hereinafter referred to as

“Dongguan Oil & Food”) 25.00%

Shuangyashan Shenliang Cereals Base Co. Ltd. (hereinafter referred to as

“Shuangyashan”) 25.00%

Shenzhen Shenbao Huacheng Technology Co. Ltd. (hereinafter referred to as

“Shenbao Huacheng”) 15.00%Wuyuan Ju Fang Yong Tea Industry Co. Ltd(hereinafter referred to as “WuyuanJu Fang Yong”) 15.00%

Shenzhen Shenshenbao Investment Co. Ltd(hereinafter referred to as

“Shenshenbao Investment”) 25.00%

Shenzhen Shenshenbao Tea Culture Commercial Management Co.Ltd.(hereinafter referred to as “Shenbao Tea Culture”) 25.00%Hangzhou Ju Fang Yong Holding Co. Ltd(hereinafter referred to as “Ju FangYong Holding”) 25.00%

Hangzhou Fuhaitang Catering Management Chain Co. Ltd. (hereinafter referred

to as “Fuhaitang Catering”) 25.00%

Hangzhou Fuhaitang Tea Ecology Technology Co. Ltd(hereinafter referred to as

“Fuhaitang Tea Ecology”) 25%Mount Wuyi Shenbao Rock Tea Co. Ltd.(hereinafter referred to as “ShenbaoRock Tea”) 25.00%

Yunnan Shenbao Pu’er Tea Supply Chain Management Co. Ltd. (hereinafter

referred to as “Pu’er Tea Supply Chain”) 25.00%Shenzhen Shenliang Food Co. Ltd. (hereinafter referred to as “ShenzhenShenliang Food”) 25.00%Huizhou Shenliang Food Co. Ltd. (hereinafter referred to as “HuizhouShenliang Food”) 25.00%

84深圳市深粮控股股份有限公司2024年半年度报告全文Huizhou Shenbao Technology Co. Ltd.(hereinafter referred to as “HuizhouShenbao”) 25.00%

Shenliang Hongli Grain and Oil (Shenzhen) Co. Ltd (hereinafter referred to as

25.00%

“Shenliang Hongli”)

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 June 30 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([2023]No.48)”

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

2024 to December 31 2027.

3. Enterprise income tax

(1) On May 27 2021 the General Administration 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

85深圳市深粮控股股份有限公司2024年半年度报告全文

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.

(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.* 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.* 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 AgriculturalProducts Applicable to the Corporate Income Tax Preferential Policy of the Ministry of Finance and the State Administration ofTaxation” (CS[2011]No.26) the wheat primary processing is exempt from income tax.* 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 and Shenliang Quality Inspection 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 Beginning balance

Cash on hand 9350.71 10106.10

Cash in bank 76739623.56 233808796.22

Other monetary fund 4839681.02 2565704.28

Total 81588655.29 236384606.60

Other explanation:

The details of monetary funds that are restricted in use due to mortgage pledge or freezing restricted in centralized management

and withdrawal of funds and restricted in repatriation due to being placed overseas are as follows:

86深圳市深粮控股股份有限公司2024年半年度报告全文

Item Ending balance Ending balance of last period

Guarantee deposit 1800000.00

Letter of credit deposit 4750000.00 691708.31

Litigation related freezing 2973129.00 2973129.00

Other

Total 7723129.00 5464837.31

2.Tradable financial assets

In RMB

Item Ending balance Beginning balance

Financial assets measured by fair value

and with variation reckoned into current 1122347.85

gains/losses

Including:

Equity investment instrument 1122347.85

Including:

Total 1122347.85

Other explanation:

3.Derivative financial assets

In RMB

Item Ending balance Beginning balance

Other explanation:

4.Note receivable

(1)By category

In RMB

Item Ending balance Beginning balance

Bank acceptance bill 113932.00

Total 113932.00

(2) Accrued bad debt provision

In RMB

Ending balance Beginning balance

Book value Bad debt provision Book value Bad debt provision

Category Book Book

Accrual Accrual

Amount Ratio Amount value Amount Ratio Amount value

ratio ratio

Including:

Including:

87深圳市深粮控股股份有限公司2024年半年度报告全文

If the bad debts provision of accounts receivable is made on the basis of the general model of expected credit losses:

□Applicable□Not applicable

(3) Bad debt provision accrual collected or reversal in the period

Bad debt provision accrual in the period:

In RMB

Category Beginning

Amount changed in the period

balance Accrual Collected orreversal Written-off Other

Ending balance

Including major amount bad debt provision collected or reversal in the period:

□ Applicable□Not applicable

(4) Notes receivable already pledged by the Company at the end of the period

In RMB

Item Amount pledge at period-end

(5) Notes endorsement or discount and undue on balance sheet date

Item Ending derecognized amount Ending not derecognized amount

(6) Note receivable actually 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) 251753250.07 185011814.38

1-2 years 4448936.32 1411768.67

2-3 years 467145.18 732353.29

Over 3 years 95494612.88 95284580.37

3-4 years 295299.35 2124859.32

4-5 years 2066167.80 80685.16

Over 5 years 93133145.73 93079035.89

Total 352163944.45 282440516.71

88深圳市深粮控股股份有限公司2024年半年度报告全文

(2)Accrued bad debt provision

In RMB

Ending balance Beginning balance

Categor Book balance Bad debt provision Book balance Bad debt provision

y Accr AccrAmount Ratio Amount ual Book value Amount Ratio Amount ual Book value

ratio ratio

Account

receivab

le with

bad debt

provisio 99644394 28.29 99547665 99.90 99603414 35.27 9951395 99.91

n 96729.26 89458.93.91 % .65 % .71 % 5.78 %

accrued

on

single

basis

Includin

g:

Account

receivab

le with

bad debt

provisio 25251954 71.71 3118571. 1.23 24940097 18283710 64.73 3098066. 1.69 17973903

n 9.54 % 98 % 7.56 2.00 % 95 % 5.05

accrued

on

portfolio

Includin

g

Portfo

lio of

sales 14019063 39.81 3118571. 2.22 13707206 11606660 41.09 3098066. 2.67 11296853

receivab 8.63 % 98 % 6.65 4.29 % 95 % 7.34

le

Objec

t- 11232891 31.90 11232891 66770497 23.64 66770497

specific 0.000.91 % 0.91 .71 % .71

portfolio

35216394100.01026662329.152494977028244051100.0102612036.3317982849

Total

4.450%7.63%6.826.710%22.73%3.98

Bad debt provision accrued on single basis

In RMB

Beginning balance Ending balance

Name

Book balance Bad debtprovision Book balance

Bad debt

provision Accrual ratio Accrual causes

Bad debt

provision Low possibility

99603414.7199513955.7899644394.9199547665.6599.90%

accrued on of recovery

single basis

Total 99603414.71 99513955.78 99644394.91 99547665.65

Bad debt provision accrued on portfolio: portfolio of sales receivable

In RMB

Ending balance

Name

Book balance Bad debt provision Accrual ratio

Portfolio of sales receivable 140190638.63 3118571.98 2.22%

89深圳市深粮控股股份有限公司2024年半年度报告全文

Total 140190638.63 3118571.98

Explanation on the basis for determining portfolio:

Bad debt provision accrual on portfolio: object-specific portfolio

In RMB

Ending balance

Name

Book balance Bad debt provision Accrual ratio

Object-specific portfolio 112328910.91

Total 112328910.91

Explanation on the basis for determining portfolio:

If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses:

□ Applicable□Not applicable

(3) Bad debt provision accrued collected or reversal

Bad debt provision accrued in the period:

In RMB

Beginning Change in current periodCategory balance Accrued Collected orreversal Charged off Other

Ending balance

Bad debt

provision

for 102612022.73 249557.35 195342.45 102666237.63

accounts

receivable

Total 102612022.73 249557.35 195342.45 102666237.63

Important bad debt provision 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 debt

provision

(4) Account receivable actually charged off in the period

In RMB

Item Amount charged off

Including major account receivable charged off:

In RMB

Enterprise Nature Amount charged off Written-off causes Procedure of Resulted by relatedwritten-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

Ending balance of

Ratio in total

Ending balance of bad debt provision

Ending balance of Ending balance of ending balance of

Name account receivable and impairment

account receivable contract assets account receivable

and contract assets reserve of contract

and contract assets

assets

90深圳市深粮控股股份有限公司2024年半年度报告全文

First 109554078.55 109554078.55 31.11%

Second 26793258.62 26793258.62 7.61% 267932.59

Third 10455627.54 10455627.54 2.97% 10455627.54

Fourth 6776216.00 6776216.00 1.92% 67762.16

Fifth 6039907.50 6039907.50 1.72% 1826.50

Total 159619088.21 159619088.21 45.33% 10793148.79

6.Contract asset

(1)Contract asset

In RMB

Ending balance Beginning balance

Item Bad debt Bad debt

Book balance Book value Book balance Book value

provision provision

(2)The 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 debt provision

In RMB

Ending balance Beginning balance

Book value Bad debt provision Book value Bad debt provision

Category Book Book

Accrual Accrual

Amount Ratio Amount value Amount Ratio Amount value

ratio ratio

Including:

Including:

If the bad debt provision of account receivable is made on the basis of the general model of expected credit losses:

□Applicable□Not applicable

(4) Bad debt provision accrued collected or reversal

In RMB

Category Accrued in current period Collected or reversal Charged off inin current period current period Reason

Important bad debt provision 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 debt

provision

Other explanation:

91深圳市深粮控股股份有限公司2024年半年度报告全文

(5)Contract assets actually 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 Beginning balance

(2)Accrued bad debt provision

In RMB

Ending balance Beginning balance

Book value Bad debt provision Book value Bad debt provision

Category Book Book

Accrual value AccrualAmount Ratio Amount Amount Ratio Amount value

ratio ratio

Including:

Including:

The bad debt provision of accounts receivable is made on the basis of the general model of expected credit losses:

In RMB

Phase I Phase II Phase III

Bad debt provision 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 impairment

Total

occurred) occurred)

Balance on Jan. 1

2024 in the period

Classification basis and accrued ratio of bad debt provision for each stage

Explanation on significant changes in the financing book balance of accounts receivable with changes in impairment provision in

the current period:

(3)Bad debt provision accrued collected or reversal

Bad debt provision accrued in the period:

In RMB

Amount changed in the period

Category Beginning balance Collected or Ending balanceAccrued reversal Written-off Other

Important bad debt provision collected or reversal

92深圳市深粮控股股份有限公司2024年半年度报告全文

In RMB

Basis and rationality to

define the accrued ratio

Enterprise Collected or reversal Reason for reversal Manner of reversal

of original bad debt

provision

Other explanation:

(4)Account receivable financing already pledged by the Company at period-end

In RMB

Item Amount pledge at period-end

(5)Account receivable financing endorsement or discount and undue on balance sheet date

In RMB

Item Amount derecognized at period-end Amount not derecognized at period-

end

(6) Account receivable financing actually 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:

(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 Beginning balance

Other accounts receivable 23652977.28 29127689.89

Total 23652977.28 29127689.89

(1)Interest receivable

1)Category of interest receivable

In RMB

Item Ending balance Beginning balance

93深圳市深粮控股股份有限公司2024年半年度报告全文

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 debt provision

□Applicable□Not applicable

4)Bad debt provision accrued collected or reversal

In RMB

Amount changed in the period

Category Beginning balance

Accrued Collected or

Ending balance

reversal Written-off Other

Important bad debt provision 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 debt

provision

Other explanation:

5) Interest receivable actually 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 Beginning balance

2)Significant dividend receivable with aging over one year

In RMB

Item(or investee) Ending balance Aging Reason for not received Whether impairment

has occurred and its

94深圳市深粮控股股份有限公司2024年半年度报告全文

judgment basis

3)Accrued bad debt provision

□Applicable□Not applicable

4)Bad debt provision accrued collected or reversal

Bad debt provision accrued in the period:

In RMB

Amount changed in the period

Category Beginning balance Collected or Ending balanceAccrued reversal Written-off Other

Important bad debt provision 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 debt

provision

Other explanation:

5) Dividend receivable actually charged off in the period

Unit: RMB

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 8035033.66 10671175.15

Other intercourse funds 118186650.76 121009368.29

Total 126221684.42 131680543.44

2)By aging

In RMB

Aging Ending book balance Beginning book balance

Within 1 year(inclusive) 14563793.58 18288294.29

95深圳市深粮控股股份有限公司2024年半年度报告全文

1-2 years 7761005.90 9503326.35

2-3 years 4927839.57 2536281.98

Over 3 years 98969045.37 101352640.82

3-4 years 499026.82 3501011.75

4-5 years 1625705.75 1478563.36

Over five years 96844312.80 96373065.71

Total 126221684.42 131680543.44

3)Accrued bad debt provision

□Applicable □Not applicable

In RMB

Ending balance Beginning balance

Book value Bad debt provision Book value Bad debt provision

Category Book Book

Accrual

Amount Ratio Amount value

Accrual

Amount Ratio Amount value

ratio ratio

Bad debt

provision 101844 999042 194060 102362 999056 245696

80.68%98.09%77.73%97.60%

accrued on 895.11 91.27 3.84 618.93 53.94 4.99

single basis

Including:

Bad debt

provision

243767266441217123293179264719266707

accrued on 19.32% 10.93% 22.27% 9.03%

89.315.8773.4424.519.6124.90

portfolio

basis

Including

Portfolio of

expected 103270 264121 768587 110213 264719 837415

8.73%25.58%8.37%24.02%

credit risk 85.67 4.77 0.90 54.40 9.61 4.79

feature

Object-

14049723201.1140265182965182965

specific 10.59% 0.17% 43.90%

03.64002.5470.1170.11

portfolio

Total 126221 102568 236529 131680 102552 291276100.00% 100.00%

684.42707.1477.28543.44853.5589.89

Type of bad debt provision accrued on single basis:

In RMB

Beginning balance Ending balance

Name Bad debt Bad debt Bad debt

Book value Book value Book value

provision provision provision

Bad debt

The possibility

provision

102362618.93 99905653.94 101844895.11 99904291.27 98.09% of retrieval is

accrued on

extremely small

single basis

Total 102362618.93 99905653.94 101844895.11 99904291.27

Type of bad debt provision accrued on portfolio basis : Portfolio of expected credit risk feature

In RMB

96深圳市深粮控股股份有限公司2024年半年度报告全文

Ending balance

Name

Book value Bad debt provision Withdrawal proportion

Portfolio of expected credit

10327085.672641214.7725.58%

risk feature

Total 10327085.67 2641214.77

Explanation on the basis of defining such portfolio

Type of bad debt provision accrued on portfolio basis:

In RMB

Ending balance

Name

Book value Bad debt provision Withdrawal proportion

Object-specific portfolio 14049703.64 23201.10

Total 14049703.64 23201.10

If the provision for bad debts of accounts receivable is made on the basis of the general model of expected credit losses:

In RMB

Phase I Phase II Phase III

Expected credit losses Expected credit losses

Bad debt provision 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 18292.31 18292.31

Current reversal 2002.99 435.73 2438.72

Other changes 926.94 -926.94 0.00

Balance on June 30

2664415.8799904291.27102568707.14

2024

Classification basis and bad debt provision ratio for each stage

Changes in book balance with significant changes in impairment provision in the current period

□Applicable□Not applicable

4)Bad debt provision accrued collected or reversal

Bad debt provision accrued in the period:

In RMB

Amount changed in the period

Category Beginning balance

Accrued Collected or

Ending balance

reversal Written-off Other

Bad debt provision of

other accounts 102552853.55 18292.31 2438.72 102568707.14

receivable

Total 102552853.55 18292.31 2438.72 102568707.14

Important bad debt provision 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 debt

provision

97深圳市深粮控股股份有限公司2024年半年度报告全文

5) Other account receivable actually 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 provision

First Intercourse funds 24108742.46 Over five years 19.10% 22187644.18

Second Intercourse funds 8326202.63 Over five years 6.60% 8326202.63

Third Intercourse funds 8285803.57 Over five years 6.56% 8285803.57

Fourth Intercourse funds 8257311.80 Over five years 6.54% 8257311.80

Fifth Intercourse funds 6781000.00 Over five years 5.37%

Total 55759060.46 44.18% 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 Beginning balance

Aging Amount Ratio Amount Ratio

Within 1 year 66993762.15 98.30% 16244819.71 94.26%

1-2 year 822570.56 1.21% 676069.63 3.92%

2-3 years 35649.86 0.05% 95050.89 0.55%

Over 3 years 297072.05 0.44% 218761.69 1.27%

Total 68149054.62 17234701.92

Explanation on reasons for not timely settling important account paid in advance with age 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 38640000.00 56.70

Second 6455967.75 9.47

Third 5894976.91 8.65

98深圳市深粮控股股份有限公司2024年半年度报告全文

Prepaid objects Ending balance Proportion in total prepayment balance

at the end of period (%)

Fourth 4135560.00 6.07

Fifth 2675633.12 3.93

Total 57802137.78 84.82

Other explanation:

10.Inventory

Does the Company need to comply with the disclosure requirements of the real estate industry

No

(1)By category

In RMB

Ending balance Beginning 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 70142518.71 15117598.01 55024920.70 63123938.67 15039481.32 48084457.35

Goods in

process 24881677.33 24881677.33 27382027.01 27382027.01

Finished goods 3744804898.48 121390592.69 3623414305.79 3449447657.13 87071319.87 3362376337.26

Revolving

material 2967788.47 1689782.52 1278005.95 2935812.93 1685748.86 1250064.07

Goods in

transit 11313953.36 11313953.36 12559426.44 12559426.44

Low value

consumables -

3610349.55266242.873344106.686824189.9432513.036791676.91

packaging

materials

Work in

process- 5438894.64 5438363.67 530.97 5438363.67 5438363.67

outsourced

Total 109267426.73863160080.54 143902579.76 3719257500.78 3567711415.79 3458443989.04

5

(2)Data resource defined as inventory

In RMB

Inventory of data

Outsourced data Self-processed data

Item resourced acquired by Total

resource inventory resource inventory

other manners

(3)Inventories fall provision or impairment provision of contract performance costs

In RMB

Beginning Current amount increased Current amount decreasedItem balance Ending balanceAccrual Other Reversal orwrite-off Other

99深圳市深粮控股股份有限公司2024年半年度报告全文

Raw materials 15039481.32 99052.06 20935.37 15117598.01

Finished goods 87071319.87 79587092.88 45267820.06 121390592.69

Revolving

material 1685748.86 7955.76 3922.10 1689782.52

Low value

consumables -

32513.03233743.5813.74266242.87

packaging

materials

Work in

process- 5438363.67 5438363.67

outsourced

Total 109267426.75 79927844.28 45292691.27 143902579.76

Inventories fall provision accrued in terms of portfolio

In RMB

Ending Opening

Portfolio name

Ending balance Inventories fall

Accrual ratio of Accrual ratio of

provision inventories fall

Beginning Inventories fall

provision balance provision

inventories fall

provision

Standard for inventories fall provision accrued in terms of portfolio

(4)Explanation of 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 Fair value Estimated Estimatedbalance provision value disposal cost disposal time

Other explanation:

12. Non-current asset due within one year

In RMB

Item Ending balance Beginning 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 Beginning balance

Input tax to be deducted 57740544.05 48868668.82

Certificate of deposit 30226849.32

Gains/losses from assets to be disposed 1627096.85 1623160.79

100深圳市深粮控股股份有限公司2024年半年度报告全文

Prepayment of taxes 216137.50 25137638.10

VAT deduction amount 186379.24 1606.45

Total 59770157.64 105857923.48

Other explanation:

14.Creditors’ investment

(1) Creditors’ investment

In RMB

Ending balance Beginning 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 Beginning balance Current increase Current decrease Ending balance

(2)Important creditors’ investment at year-end

Major creditors’ investment

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 debt provision Expected credit losses Expected credit losses for Expected credit losses for Total

over next 12 months the entire duration (without the entire duration (withcredit impairment occurred) credit impairment occurred)

Balance on Jan. 1 2024

in the period

Classification basis and accrual ratio of bad debt provision for each stage

(4) Debt investment actually charged off in the period

Unit: RMB

Item Amount charged off

Including major debt investment charged off:

Explanation on debt investment charged off:

Changes in book balance with significant changes in the current period's provision for losses

□Applicable□Not applicable

Other explanation:

101深圳市深粮控股股份有限公司2024年半年度报告全文

15.Other creditors’ investment

(1)Other creditors’ investment

In RMB

Impairment

provision

Change of fair Accumulated accumulated

Item Beginning 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 debt investments in the current period

In RMB

Item Beginning balance Current increase Current decrease Ending balance

(2)Other major 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 debt provision 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 debt provision for each stage

(4) Other debt investment actually charged off in the period

Unit: RMB

Item Amount charged off

Including major other debt investment charged off:

Explanation on other debt investment charged off:

Changes in book balance with significant changes in the current period's provision for losses

□Applicable□Not applicable

Other explanation:

16.Other equity instrument investment

In RMB

Item Ending Beginni Gains Losses Accumulated Accumulated Dividend Reasons for

102深圳市深粮控股股份有限公司2024年半年度报告全文

balance ng recognized in recognized in gains losses income designating

balance other other recognized in recognized in recognized fair value

comprehensive comprehensive other other in this measurement

income for the income for the comprehensive comprehensive period with changes

current period current period income at the income at the recognized in

end of this end of this other

period period comprehensive

income

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 defining fair Reasons for

other value transferringmeasurement other

comprehensive

Dividends Accumulated Accumulated with changes comprehensive

Item income

income gains losses recognized in income to

transferred to other retained

retained comprehensive earnings

earnings income

Other explanation:

17.Long-term account receivable

(1)Long-term account receivable

In RMB

Ending balance Beginning balance

Discount rate

Item Bad debt Bad debt

Book balance Book value Book balance Book value range

provision provision

(2)Accrued bad debt provision

In RMB

Ending balance Beginning balance

Book balance Bad debt provision Book balance Bad debt provision

Category Book Book

Accrual Accrual

Amount Ratio Amount value Amount Ratio Amount value

ratio ratio

Including:

Including:

The bad debt provision is made in terms of the general model of expected credit losses

In RMB

Bad debt provision Phase I Phase II Phase III Total

103深圳市深粮控股股份有限公司2024年半年度报告全文

Expected credit losses Expected credit losses for Expected credit losses for

over next 12 months the entire duration (without the entire duration (withcredit impairment occurred) credit impairment occurred)

Balance on Jan. 1 2024

in the period

Classification basis and accrual ratio of bad debt provision for each stage

(3)Bad debt provision accrued collected or reversal

In RMB

Amount changed in the period

Category Beginning balance Collected or Ending balanceAccrued reversal Written-off Other

Important bad debt provision 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 debt

provision

Other explanation:

(4) Long-term account receivable actually 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

Beginni Current changes (+/-)

Begin ng Endin Ending

ning balance Add Ca Investm Other Oth Cash Accru g balance

balan of ition pit ent compre er dividend al of

O balan of

Invested entity ce impairm al al gains hensive equ or profit impair

t ce impairm

(book ent inve red recogniz income ity announc ment

h

e (book ent

value) provisio stm uct ed under adjustm cha ed to provis r value provisio

n ent ion equity ent nge issued ion ) n

I. Joint venture

II. Associated enterprise

Shenzhen Duoxi 1587 - 1250

Equity Investment

Fund Management 723.8 337578. 145.Co. Ltd. 1 03 78

Zhuhai Hengxing 3365 3416

Feed Industrial Co. 514675.3135. 7810

Ltd. 0148 .49

Shenliang 2708 2727

Intelligent Wulian 188403.Equity Investment 1889. 029356

Fund (Shenzhen) 78 .34

104深圳市深粮控股股份有限公司2024年半年度报告全文

Partnership

Enterprise (Limited)

Shenzhen Shenyuan

Data Tech. Co. Ltd 6177. 208801 161.

415.4299

Shenbao Liaoyuan

Investment 57628.5 57628.Company 3 53

Shenzhen Shenbao

(Xinmin) Foods 287000 28700

Co. Ltd. 0.00 00.00

Changzhou Shenbao

Chacang E-business

Co. ltd.Shenzhen

Shichumingmen

Catering

Management Co.Ltd.Subtotal 292762 292768926. 172251 6411

8.5328.53

484.88.60

Total 292762 292768926. 172251 6411

8.5328.53

484.88.60

The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value

□Applicable□Not applicable

The recoverable amount is determined based on 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 Beginning 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 Construction inHouse and building Land use right Total

progress

I. Original book value

105深圳市深粮控股股份有限公司2024年半年度报告全文

1.Beginning balance 614752374.09 614752374.09

2.Current amount

increased

(1) Outsourcing

(2) Inventory\fixed

assets\construction in

process transfer-in

(3) Increased by

combination

3.Current amount

decreased 70520.63 70520.63

(1) Disposal

(2) Other transfer-out 70520.63 70520.63

4.Ending balance 614681853.46 614681853.46

II. Accumulated

depreciation and

accumulated

amortization

1.Beginning balance 351155342.20 351155342.20

2.Current amount

increased 8004805.63 8004805.63

(1) Accrual or

amortization 8004805.63 8004805.63

3.Current amount

decreased

(1) Disposal

(2) Other transfer-out

4.Ending balance 359160147.83 359160147.83

III. Impairment

provision

1.Beginning 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 255521705.63 255521705.63

2. Opening book value 263597031.89 263597031.89

The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value

□Applicable□Not applicable

The recoverable amount is determined based on 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:

106深圳市深粮控股股份有限公司2024年半年度报告全文

(2)Measured by fair value

□Applicable□Not applicable

(3)Converted to investment real estate and measure at fair value

In RMB

Impact on other

Accounts before Reason for Approval Impact on

Item Amount comprehensive

conversion conversion procedures gains/losses

income

(4)Investment real estate without property certificate completed

In RMB

Reason for not obtaining the property

Item Book value

rights certificate

1st floor 7th- 20th floor of Dongguan No.1 The joint inspection has not been

48398153.11

Grain and Oil Headquarters completed temporarily

Remaining issues currently being

Office Building Rental Haizhifeng Part 812981.29

followed up

Other explanation:

21.Fixed assets

In RMB

Item Ending balance Beginning balance

Fixed assets 2127010769.47 2171962173.22

Disposal of fixed assets 7552.00 7552.00

Total 2127018321.47 2171969725.22

(1)Fixed assets

In RMB

Item House and Machinery Transport Electronic andbuildings equipment equipment other equipment Total

I. Original book

value:

1.Beginning

balance 2030666059.42 779559717.86 16206810.75 104121959.64 2930554547.67

2.Current

amount increased 998789.00 313696.30 161000.00 1368583.13 2842068.43

(1)Purchase 255839.22 161000.00 1116115.98 1532955.20

(2) Construction

in progress 998789.00 57857.08 252467.15 1309113.23

transfer-in

(3) Increased by

combination

3.Current

amount decreased 222989.50 277460.63 731867.59 1232317.72

(1) Disposal

or scrap 277460.63 731867.59 1009328.22

Other decrease 222989.50 222989.50

4.Ending 2031441858.92 779595953.53 16367810.75 104758675.18 2932164298.38

107深圳市深粮控股股份有限公司2024年半年度报告全文

balance

II. Accumulated

depreciation

1.Beginning

balance 350849019.39 318153516.48 13863413.36 72903471.51 755769420.74

2.Current

amount increased 23701120.38 17996162.91 372346.29 5443357.93 47512987.51

(1) Accrual 23701120.38 17996162.91 372346.29 5443357.93 47512987.51

3.Current

amount decreased 267077.45 684755.60 951833.05

(1) Disposal

or scrap 267077.45 684755.60 951833.05

4.Ending balance 374550139.77 335882601.94 14235759.65 77662073.84 802330575.20

III. Impairment

provision

1.Beginning

balance 2813063.84 9889.87 2822953.71

2.Current

amount increased

(1) Accrual

3.Current

amount decreased

(1) Disposal

or scrap

4.Ending

balance 2813063.84 9889.87 2822953.71

IV. Book value

1.Ending book

value 1656891719.15 440900287.75 2132051.10 27086711.47 2127010769.47

2. Opening book

value 1679817040.03 458593137.54 2343397.39 31208598.26 2171962173.22

(2) Temporarily idle fixed assets

In RMB

Item Original book value Accumulated Impairmentdepreciation provision Book value Note

(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 571246866.67 Still under processing

Housing and buildings of Dongguan

81221407.86 Under processing

Industrial and Trade

Shuguang Grain reserve warehouse 52405275.05 Solving firefighting safety issues

Office building 13429771.63 Remaining issues currently being

108深圳市深粮控股股份有限公司2024年半年度报告全文

followed

1st to 3rd floors of Grain and Oil The joint inspection has not been

32341873.87

Headquarters completed temporarily

Cold storage house 6778090.83 Solving firefighting safety issues

Handle property certification after the

Food processing project(A3) 49983933.98

completion record is finished.Food processing and logistics distribution Handle property certification after the

72687422.33

industry park(A2) completion record is finished.Other explanation:

(5)Impairment testing of fixed assets

□Applicable□Not applicable

(6)Disposal of fixed assets

In RMB

Item Ending balance Beginning balance

Machinery equipment 7368.24 7368.24

Electronic equipment and others 183.76 183.76

Total 7552.00 7552.00

Other explanation:

22.Construction in progress

In RMB

Item Ending balance Beginning balance

Construction in progress 63236301.49 51288301.16

Total 63236301.49 51288301.16

(1) Construction in progress

In RMB

Ending balance Beginning balance

Item Book balance Impairmentprovision Book value Book balance

Impairment

provision Book value

Dongguan grain

storage and

37176625.8337176625.8332632618.6232632618.62

wharf matching

project

Small

packaging

production line

8891368.458891368.458880595.198880595.19

of Dongguan

Industrial and

Trade

CDE storage of

Dongguan Food

Industrial Park 6337990.40 6337990.40 4965118.29 4965118.29

and wharf

mating projects

Semi automated 1777617.73 1777617.73 1784995.63 1784995.63

109深圳市深粮控股股份有限公司2024年半年度报告全文

renovation

project for

powder

packaging

production line

Deep

processing of

Dongguan Oil 513729.78 513729.78 513729.78 513729.78

& Food

Other 13284492.68 4745523.38 8538969.30 7256767.03 4745523.38 2511243.65

Total 67981824.87 4745523.38 63236301.49 56033824.54 4745523.38 51288301.16

(2)Changes of major construction in progress

In RMB

Propo Includi

Othe rtion ng:

r of Accumu amount Interest

Beginni Current Transfer decre projec lated of capitali Capit

Item Budget ng amount Ending t Prog capitali al

balance increase

-in fixed ased balance invest ress capitalizassets in the ation of zation

zation

d rate in

resou

Perio ment interest of rces

d in interest

Period

budge in

t Period

Dong

guan

grain Loan

stora s

ge from

and 1242000 326326 61404 675693. 9207 37176 89.02 89.0 373441 12211 2.30% finan

wharf 000.00 18.62 92.42 13 92.08 625.83 % 2% 12.39 7.23 cial

matc instit

hing

proje ution

ct

CDE

stora

ge of

Dong

guan Loan

Food s

Indus from

trial 1087300 496511 13728 63379 98.92 98.9 867305 finan

Park 000.00 8.29 72.11 90.40 % 2% 68.74 cial

and instit

wharf

matin ution

g

proje

cts

Total 2329300 375977 75133 675693. 9207 43514 124074 12211 2.30%

000.0036.9164.531392.08616.23681.137.23

(3)Provision for impairment of construction in progress

In RMB

Item Beginning balance Current increase Current decrease Ending balance Reason for accrual

Other explanation:

110深圳市深粮控股股份有限公司2024年半年度报告全文

(4)Impairment testing of construction in progress

□Applicable□Not applicable

(5)Engineering material

In RMB

Ending balance Beginning balance

Item Book balance Impairment Book value Book balance Impairmentprovision provision Book value

Other explanation:

23.Productive biological asset

(1)Measured at cost

□Applicable □Not applicable

In RMB

Item Plant Livestock Forestry Fisheries Total

I. Original book

value

1.Beginning

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.Beginning

balance 58154.28 58154.28

2.Current

amount increased 4846.20 4846.20

(1)Accrual 4846.20 4846.20

3.Current

amount decreased

(1)Disposal

(2)Other

4.Ending

balance 63000.48 63000.48

III. Impairment

provision

1.Beginning

balance

2.Current

amount increased

(1)Accrual

111深圳市深粮控股股份有限公司2024年半年度报告全文

3.Current

amount decreased

(1)Disposal

(2)Other

4.Ending

balance

IV. Book value

1.Ending book

value 353770.80 353770.80

2. Opening book

value 358617.00 358617.00

(2)Impairment testing of productive biological asset measured at cost model

□Applicable□Not applicable

(3)Measured at fair value

□Applicable□Not applicable

24. Oil and gas asset

□ Applicable□Not applicable

25. Right-of-use asset

(1)Right-of-use assets

In RMB

Item House and building Land use rights Total

I. Original book value

1.Beginning balance 110474798.90 1823669.22 112298468.12

2.Current amount

increased 47977.64 1052300.17 1100277.81

(1)Lease 47977.64 1052300.17 1100277.81

3.Current amount

509804.61509804.61

decreased

(1)Disposal 509804.61 509804.61

4.Ending balance 110012971.93 2875969.39 112888941.32

II. Accumulated depreciation

1.Beginning balance 54661515.02 703804.94 55365319.96

2.Current amount

increased 11200944.27 146776.36 11347720.63

(1) Accrual 11200944.27 146776.36 11347720.63

3.Current amount

decreased 509804.61 509804.61

(1) Disposal 509804.61 509804.61

4.Ending balance 65352654.68 850581.30 66203235.98

III. Impairment provision

1.Beginning balance

2.Current amount

increased

112深圳市深粮控股股份有限公司2024年半年度报告全文

(1) Accrual

3.Current amount

decreased

(1) Disposal

4.Ending balance

IV. Book value

1.Ending book value 44660317.25 2025388.09 46685705.34

2. Opening book value 55813283.88 1119864.28 56933148.16

(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 Trademar

Software

right technolo k rights usage

Forest use Shop use

rights rights

Other Total

rights

gy

I.Original

book

value

1.Beginni

ng 58816728 5064390 4434008 8417491 2285910 2524391 450000 77597313

balance 5.96 6.30 .99 4.95 4.98 0.01 .00 1.19

2.Current

amount 2096568.3 1426250. 3522818.9

increased 6 59 5

(1)

Purchase

(2)Interna

l R&D

(3)

Increased

by

combinati

on

(4)Other 2096568.3 1426250. 3522818.9

increase 6 59 5

3.Current

amount

decreased

(1)

Disposal

4.Ending 59026385 5064390 4434008 8560116 2285910 2524391 450000 77949595

balance 4.32 6.30 .99 5.54 4.98 0.01 .00 0.14

II.Accumula

ted

depreciati

on

1.Beginni 13226446 2991016 1382270 3586322 8490309. 1614635 37500. 22409429

113深圳市深粮控股股份有限公司2024年半年度报告全文

ng 4.12 4.33 .98 9.42 42 4.16 00 2.43

balance

2.Current

amount 8068195.7 564251.0 6192415. 386431.8 1760048. 152018 17124485.1125.06

increased 4 4 37 0 59 .16 76

(1)7393596.0564251.06192415.386431.81760048.15201816449886.

Accrual 1125.060 4 37 0 59 .16 02

(2)Other

674599.74674599.74

increase

3.Current

amount

decreased

(1)

Disposal

4.Ending 14033265 3047441 1383396 4205564 8876741. 1790640 189518 24121877

balance 9.86 5.37 .04 4.79 22 2.75 .16 8.19

III.Impairme

nt

provision

1.Beginni

ng 5553283. 5553283.5

balance 54 4

2.Current

amount

increased

(1)

Accrual

3.Current

amount 1130341. 1130341.8

decreased 88 8

(1)1130341.1130341.8

Disposal 88 8

4.Ending 5553283. 5553283.5

balance 54 4

IV. Book

value

1.Ending

book 44993119 1461620 3050612 4354552 1398236 7337507. 260481 53272388

value 4.46 7.39 .95 0.75 3.76 26 .84 8.41

2.

Opening 45590282 1518045 3051738 4831168 1436879 9097555. 412500 54632555

book 1.84 8.43 .01 5.53 5.56 85 .00 5.22

value

The ratio of the intangible assets from internal R&D in balance of intangible assets at period-end

（2） Data resource defined as intangible asset

In RMB

Data resource acquired

Outsourced data Self developed data

by other manners and

Item resource defined as resource defined as Total

defined as intangible

intangible asset intangible asset

asset

114深圳市深粮控股股份有限公司2024年半年度报告全文

(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

The invested Current increase Current decrease

entity or matters Beginning Formed bybalance business Disposal Ending balanceforming goodwill combination

Pu’er Tea Trading

Center Co. Ltd. 673940.32 673940.32 0.00

Total 673940.32 673940.32 0.00

(2)Impairment provision of goodwill

In RMB

The invested Current increase Current decrease

entity or matters Beginning

forming goodwill balance Accrual Dispose

Ending balance

Pu’er Tea Trading

Center Co. Ltd. 673940.32 673940.32 0.00

Total 673940.32 673940.32 0.00

(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 based on the net amount after deducting disposal expenses from fair value

□Applicable ?Not applicable

The recoverable amount is determined based on the present value of expected future cash flows

115深圳市深粮控股股份有限公司2024年半年度报告全文

□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

There is a performance commitment when goodwill is formed 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 Beginning balance Current increase Currentamortization Other decrease Ending balance

Improvement

expenditure for fix 8544999.35 769310.52 1527385.72 7786924.15

assets

Decoration fee 12416843.39 189100.92 1514088.64 11091855.67

Other 3732475.31 1800.00 907721.77 2826553.54

Total 24694318.05 960211.44 3949196.13 21705333.36

Other explanation:

29.Deferred income tax asset /Deferred income tax liabilities

(1)Deferred income tax assets not offset

In RMB

Ending balance Beginning balance

Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax

differences asset differences asset

Impairment provision

for assets 113009858.95 26980835.06 79024031.58 18487424.12

Unrealized profits in

internal transactions 1100509.12 3110821.11 1173392.02

Lease liabilities 49915088.62 7918282.23 60423752.25 9667435.83

Credit impairment loss 152883164.37 32494107.43 131582333.01 32508076.97

Total 315808111.94 68493733.84 274140937.95 61836328.94

(2)Deferred income tax liability not offset

In RMB

Ending balance Beginning balance

Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax

differences liabilities differences liabilities

Asset evaluation

increment of enterprise

42808100.1810702025.1443635535.0410908883.86

combine under different

control

Right-of-use asset 46643210.86 7442880.12 56763213.31 9108070.16

116深圳市深粮控股股份有限公司2024年半年度报告全文

Total 89451311.04 18144905.26 100398748.35 20016954.02

(3)Deferred income tax assets and deferred income tax liabilities listed after off-set

In RMB

Trade-off between the Ending balance of Trade-off between the Beginning 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

off-set period-begin off-set

Deferred income tax

assets 7387240.97 61106492.88 9079033.56 52757295.38

Deferred income tax

liabilities 7387240.97 10757664.29 9079033.56 10937920.46

(4)Details of uncertain deferred income tax assets

In RMB

Item Ending balance Beginning balance

Deductible temporary differences 52351780.41 73593637.62

Deductible loss 241656255.35 222144931.91

Total 294008035.76 295738569.53

(5) Deductible losses of de-recognized deferred income tax assets expiring in following years

In RMB

Year Ending balance Beginning balance Note

202415666222.0216724256.16

202559602123.6957064985.83

202627763001.9819372001.00

202741648013.6230608347.99

202849846595.3772586319.51

202947130298.676398410.06

20301592707.06

203111566491.62

20326231412.68

Total 241656255.35 222144931.91

Other explanation:

30.Other non-current asset

In RMB

Ending balance Beginning balance

Item

Book balance Impairmentprovision Book value Book balance

Impairment

provision Book value

Prepaid for

4122158.724122158.723774032.763774032.76

system

Property to be

3523917.243523917.243523917.243523917.24

relocated

Total 7646075.96 7646075.96 7297950.00 7297950.00

Other explanation:

117深圳市深粮控股股份有限公司2024年半年度报告全文

31.The assets rights restricted till end of the period

In RMB

Ending Beginning

Item Book Restriction Restriction Book Restriction Restriction

Book value Book value

balance type status balance type status

Guarantee

deposit

Guarantee

credit

Monetary deposit

7723129.00 7723129.00 deposit 5464837.31 5464837.31

fund credit

lawsuit

deposit. etc

freezing

etc.Total 7723129.00 7723129.00 5464837.31 5464837.31

Other explanation:

32.Short-term loans

(1) By category

In RMB

Item Ending balance Beginning balance

Pledge loan 0.00 0.00

Mortgage loan 0.00 0.00

Guaranteed loan 0.00 0.00

Credit loan 1471993682.19 1223462519.16

Total 1471993682.19 1223462519.16

Explanation on category of short-term loans:

(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 Beginning balance

Tradable financial liability 0.00 0.00

Including:

Including:

Other explanation:

34.Derivative financial liability

In RMB

Item Ending balance Beginning balance

118深圳市深粮控股股份有限公司2024年半年度报告全文

Other explanation:

35. Note payable

In RMB

Category Ending balance Beginning balance

Notes expiring at year-end not repaid was 0.00 yuan.

36. Account payable

(1) Account payable

In RMB

Item Ending balance Beginning balance

Trade accounts payable 210088964.42 157073307.00

Account payable for engineering 139630497.66 176815688.99

Other 3658351.90 2276200.81

Total 353377813.98 336165196.80

(2) Major accounts payable with age over one year

In RMB

Item Ending balance Reason for not repaying or carry-over

Other explanation:

37.Other account payable

In RMB

Item Ending balance Beginning balance

Dividend payable 2933690.04 2933690.04

Other account payable 266623779.54 274753900.79

Total 269557469.58 277687590.83

(1) Interest payable

In RMB

Item Ending balance Beginning balance

Important overdue and unpaid interest situation:

In RMB

Borrower Overdue amount Overdue reason

Other explanation:

(2)Dividend payable

In RMB

Item Ending balance Beginning balance

119深圳市深粮控股股份有限公司2024年半年度报告全文

Shenzhen Investment Management

2690970.142690970.14

Company

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 Beginning balance

Accounts receivable and other expenses 192157117.01 212017192.04

Deposit and margin 65846543.10 59175450.98

Engineering quality assurance deposit and

1555264.942697829.08

final payment

Accrued expenses 7064854.49 863428.69

Total 266623779.54 274753900.79

2)Significant other account payable with over 1 year aging or overdue significant other account payable

In RMB

Item Ending balance Reason for not repaying or carry-over

Other explanation:

38.Accounts received in advance

(1)Accounts received in advance

In RMB

Item Ending balance Beginning balance

Lease payment received in advance 491132.97 3654.89

Other 1012264.58 1081046.71

Total 1503397.55 1084701.60

(2) Significant accounts received in advance with over 1 year aging 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

Other explanation:

39.Contractual liabilities

120深圳市深粮控股股份有限公司2024年半年度报告全文

In RMB

Item Ending balance Beginning balance

Sales price 93304109.71 86566253.73

Total 93304109.71 86566253.73

Significant contractual 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 Beginning balance Current increase Current decrease Ending balance

I. Short-term

compensation 253139696.10 124669697.81 180257757.01 197551636.90

II. After-service

welfare-defined 12314242.50 12644785.28 9089823.63 15869204.15

contribution plans

III. Dismissed welfare 760724.60 34050.00 726674.60

Total 266214663.20 137314483.09 189381630.64 214147515.65

(2)Short-term compensation

In RMB

Item Beginning balance Current increase Current decrease Ending balance

1. Wage bonus

allowance and subsidy 244885071.13 102376213.20 157627387.52 189633896.81

2. Employees’ welfare 88864.69 5957422.47 6024067.90 22219.26

3. Social insurance

charges 302549.13 3442633.08 3396412.81 348769.40

Including: medical

insurance premium 272678.90 2991348.97 2950876.30 313151.57

Industrial injury

insurance 3329.93 199446.08 197202.54 5573.47

premiums

Maternity

insurance 26540.30 251838.03 248333.97 30044.36

premiums

4. Housing public

reserve 36788.20 10811261.24 10806449.79 41599.65

5. Trade union fee and

education fee 7817422.95 2066207.82 2378478.99 7505151.78

Other short-term

9000.0015960.0024960.00

compensation

121深圳市深粮控股股份有限公司2024年半年度报告全文

Total 253139696.10 124669697.81 180257757.01 197551636.90

(3)Defined contribution plans

In RMB

Item Beginning balance Current increase Current decrease Ending balance

1. Basic endowment

insurance premiums 27351.36 8677843.06 8666906.92 38287.50

2. Unemployment

insurance premiums 6375.81 427933.61 422916.71 11392.71

3. Enterprise annuity 12280515.33 3539008.61 15819523.94

Total 12314242.50 12644785.28 9089823.63 15869204.15

Other explanation:

41.Taxes payable

In RMB

Item Ending balance Beginning balance

VAT 3249306.63 3929827.56

Enterprise income tax 44568724.67 78612383.92

Personal income tax 6120749.08 919489.66

Urban maintenance and construction tax 125402.87 184436.23

Property tax 5669983.27 1402724.23

Stamp tax 325474.00 924833.66

Deed tax 664227.84 664227.84

Educational surtax 103869.84 253657.15

Use tax of land 821131.34 15205.45

Other 2644.11

Total 61651513.65 86906785.70

Other explanation:

42.Liability held for sale

In RMB

Item Ending balance Beginning balance

Subsidiary Wuhan Jiacheng 66579828.59

Total 66579828.59

Other explanation:

43.Non-current liabilities due within one year

In RMB

Item Ending balance Beginning balance

Lease liabilities due within one year 20693439.58 22805473.76

Total 20693439.58 22805473.76

Other explanation:

44.Other current liabilities

122深圳市深粮控股股份有限公司2024年半年度报告全文

In RMB

Item Ending balance Beginning balance

Deferred output tax 4029143.68 3896108.63

Other 31.93

Total 4029143.68 3896140.56

Changes of short-term bonds payable:

In RMB

Bonds Face Issuance Bonds Amount Beginning

Issued in Accrual Premium and Paid in Breach

value date term issued balance the interest by discount the

Ending contract or

period face value amortization period balance not(Y/N)

Total -- -- --

Other explanation:

45.Long-term loan

(1) Category of long-term loan

In RMB

Item Ending balance Beginning 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 Beginning balance

(2) Changes of bonds payable (not including other financial instrument of preferred stock and perpetual

capital securities that are classified as financial liability)

In RMB

Issued in Accrual Premium Paid in Breach

Bonds Face Issuance Bonds Amount Beginning interest andvalue date term issued balance the by face discount the

Ending contract

period period balance orvalue amortization not(Y/N)

Total --

(3) Convertible conditions and time for shares transfer for the 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

123深圳市深粮控股股份有限公司2024年半年度报告全文

In RMB

Outstanding Period-beginning Current increase Current decrease 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 Beginning balance

Lease payments 52900980.20 64121413.50

Unrecognized financing charges -2941437.13 -3570988.00

Minus: lease liabilities due within one

year -20693439.58 -22805473.76

Total 29266103.49 37744951.74

Other explanation:

48.Long-term account payable

In RMB

Item Ending balance Beginning balance

Special account payable 18183091.89 17994633.05

Total 18183091.89 17994633.05

(1)By nature

In RMB

Item Ending balance Beginning balance

Other explanation:

(2)Special account payable

In RMB

Item Beginning balance Current increase Current decrease Ending balance Causes

Depreciation funds

for fixed assets of

16214402.96103611.3416318014.30

government reserve

grain depots

Special funding for

research in the

207477.09207477.09

grain public

welfare industry

Shenzhen Hospital

Phase III Housing

Expropriation 1529253.00 138381.00 17033.50 1650600.50

Property Rights

Exchange

Grain and oil

3500.003500.007000.00

market monitoring

124深圳市深粮控股股份有限公司2024年半年度报告全文

and early warning

subsidy

Special funds for

the construction

and maintenance of 40000.00 40000.00

the grain

emergency system

Total 17994633.05 245492.34 57033.50 18183091.89

Other explanation:

49. Long-term wage payable

(1) Long-term wage payable

In RMB

Item Ending balance Beginning 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:

Other explanation:

50.Accrual liabilities

In RMB

Item Ending balance Beginning balance Causes

Other explanation including relevant important assumptions and estimation:

51.Deferred income

In RMB

Item Beginning balance Current increase Current decrease Ending balance Causes

Government grant Asset-related82819873.24 4057114.25 3982362.15 82894625.34

government grant

Total 82819873.24 4057114.25 3982362.15 82894625.34

Other explanation:

125深圳市深粮控股股份有限公司2024年半年度报告全文

52.Other non-current liabilities

In RMB

Item Ending balance Beginning balance

Other explanation:

53. Share capital

In RMB

Increased (decreased) in this year +-

Beginning New shares Sharesbalance Bonus shares converted from Other Subtotal Ending balanceissued 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

Outstanding financial instrument Period-beginning Current increase Current decrease Period-endQuantity 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 Beginning balance Current increase Current decrease Ending balance

Capital premium (Share capital premium) 1251860732.56 1251860732.56

Other capital reserve 8896381.86 8896381.86

Total 1260757114.42 1260757114.42

Other explanation including changes in the current period reasons for changes:

56. Treasury stock

In RMB

Item Beginning balance Current increase Current decrease Ending balance

Total 0.00 0.00

Other explanation including changes and reason for changes:

57. Other comprehensive income

126深圳市深粮控股股份有限公司2024年半年度报告全文

In RMB

Current period

Less: written in other Less: written in otherAmount comprehensive

Item Beginning before

comprehensive Less : Attributable Attributable to

balance income income in previous

income in previous Ending

period and carried period and carried

income to parent minority balance

tax in the forward to current forward to retained

tax company shareholders

period earnings in current expense after tax after taxgains/losses period

Total of other

comprehensive 0.00 0.00

income

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 Beginning balance Current increase Current decrease Ending balance

Work safety fee 741968.19 836287.66 481774.25 1096481.60

Total 741968.19 836287.66 481774.25 1096481.60

Other explanation including changes in current period and reason for changes:

59. Surplus public reserve

In RMB

Item Beginning balance Current increase Current decrease Ending balance

Statutory surplus reserves 483103366.38 483103366.38

Total 483103366.38 483103366.38

Other explanation including changes in current period and reasons for changes:

60. Retained profit

In RMB

Item Current period Last period

Retained profit at the end of the previous year

before adjustment 1927314400.85 1910954084.79

Total adjustment amount of retained profit at the

beginning of the year(adjustment increase 0.00 148597.59

+/adjustment decrease-)

Retained profit at the beginning of the year after

adjustment 1927314400.85 1911102682.38

Add: net profit attributable to shareholder of parent

company 129030850.78 347824733.68

Less: withdrawal of legal surplus reserve 43479201.71

Common stock dividends payable 230507050.80 288133813.50

Retained profit at period-end 1825838200.83 1927314400.85

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 0.00 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

127深圳市深粮控股股份有限公司2024年半年度报告全文

0.00 yuan.

5) Due to other adjustments the retained profits at the beginning of the period was affected by 0.00 yuan.

61. Operating income and operating cost

In RMB

Item Current period Last period

Income Cost Income Cost

Main business 2415839496.41 1985218970.39 2831155949.83 2356767116.63

Other business 613423.20 206792.93 840851.99 671590.94

Total 2416452919.61 1985425763.32 2831996801.82 2357438707.57

Breakdown of operating income and operating cost:

In RMB

Branch 1 Branch 2 Total

Category Operating Operating Operating Operating Operating Operating Operating Operating

income cost income cost income cost income cost

Business

types

Including:

Classificati

on by

business

area

Including:

Market or

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:

128深圳市深粮控股股份有限公司2024年半年度报告全文

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 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 corresponding income for performance obligations which

are not yet fulfilled or unfinished amounted to 93304109.71 yuan. The whole amount 93304109.71 yuan is expected to be

recognized within one year.Information related to variable consideration in the contract:

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 732943.30 707839.53

Education surcharge 447916.95 514033.21

Property tax 5647115.56 5465817.42

Use tax of land 995148.54 1057091.18

Vehicle and vessel use tax 12197.60 8618.40

Stamp duty 702590.30 1041352.09

Other 131522.81 23851.07

Resource tax 12486.15

Total 8669435.06 8831089.05

Other explanation:

63.Administration expenses

In RMB

Item Current period Last period

Labor and social security benefits 56814032.17 68054624.17

Depreciation and amortization of long-

term assets 22875890.10 21180508.17

Office expenses 2648095.32 3240787.25

Intermediary agency fee 2189633.97 2520013.55

Travelling expense 724417.01 926931.47

Communication expense 760746.70 743873.40

Vehicle usage fee 562013.08 531242.62

Business hospitality 299069.79 441096.09

Rental 133328.88 100321.82

Repair cost 312129.52 211610.40

Low-value consumable 3924.22 25815.93

Other 7403442.99 6680190.17

129深圳市深粮控股股份有限公司2024年半年度报告全文

Total 94726723.75 104657015.04

Other explanation:

64.Sales expense

In RMB

Item Current period Last period

Labor and social security benefits 46005597.00 46585880.47

Depreciation and amortization of long-

term assets 7978358.27 7597306.09

Utilities and office expenses 5154390.85 4317153.38

Sales service fee 6029769.66 3981193.46

Storage and loading/unloading fees 4783.47 4495439.50

Port terminal fees 715427.02 6403280.39

Travel expenses 1111459.18 1272102.59

Business hospitality 517485.12 870284.53

Rental 292107.15 122357.08

Advertising expenses 820363.78 151566.61

Property insurance premium 840821.33 315312.65

Low value consumables and other loss

1961226.16-1471258.29

expenses

Logistics and transportation costs 344270.20 200017.78

Vehicle usage fee 86253.99 161425.43

Other 1598513.78 6079182.41

Total 73460826.96 81081244.08

Other explanation:

65.R&D expenses

In RMB

Item Current period Last period

Labor and social security benefits 5116627.53 5658800.71

Depreciation cost 1573235.55 1459851.71

Material consumption 1699485.02 1079631.78

Travel expense 349424.09 368211.91

Maintenance and inspection fee 250655.39 33552.42

Office expense 83555.14 336015.10

Intermediary fees 31654.72 56115.10

Other 708633.77 440566.51

Total 9813271.21 9432745.24

Other explanation:

66.Financial expense

In RMB

Item Current period Last period

Interest expenses 17092597.32 20495411.83

Less: Interest income 952349.13 315939.31

Exchange gains or loss 183430.87 253349.64

Handling fee and others 446174.46 375293.18

Total 16769853.52 20808115.34

130深圳市深粮控股股份有限公司2024年半年度报告全文

Other explanation:

67.Other income

In RMB

Sources Current period Last period

Government grant 5540994.27 4215117.48

Input tax deduction 897627.62 1189220.31

Handling fees for withholding personal

income tax 448072.44 383734.35

Direct reduction of value-added tax 346.53 0.00

Other 1509124.92 0.00

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 -113524.84

Tradable financial liabilities 288486.18

Total 174961.34

Other explanation:

70.Investment income

In RMB

Item Current period Last period

Long-term equity investment income

measured by equity -1722514.88 -705464.09

Investment income from disposal of long-

term equity investment 1156849.46

Financing products 3933789.27 3107648.76

Total 3368123.85 2402184.67

Other explanation:

71.Credit impairment loss

In RMB

Item Current period Last period

Loss of bad debt of account receivable -53879.90 56679.59

Loss of bad debt of other account

receivable -15853.59 613567.64

Total -69733.49 670247.23

Other explanation:

131深圳市深粮控股股份有限公司2024年半年度报告全文

72.Asset impairment loss

In RMB

Item Current period Last period

I. Inventory depreciation and contract

performance cost impairment loss -79774391.84 -46633952.80

Total -79774391.84 -46633952.80

Other explanation:

73.Income from assets disposal

In RMB

Sources Current period Last period

Gains/losses from disposal of non-current

assets 5219432.33 1587775.37

74.Non-operation income

In RMB

Amount included in the

Item Current period Last period current non-recurring

gains/losses

Liquidated damages

8536.00191240.008536.00

compensation income

No payment required 1000.00 1000.00

Gains from damage and

784.47784.47

scrapping of non-current assets

Gains from inventory surplus 0.00 0.00

Government relocation

0.000.00

subsidy

Other 61826.18 147404.53 61826.18

Total 72146.65 338644.53 72146.65

Other explanation:

75.Non-operating expenditure

In RMB

Amount included in current

Item Current period Last period

non-recurring gains and losses

External donations 21613.38 21613.38

Penalty expenses (and

liquidated damages) 3632.69 3632.69

Loss of scrap from non-current

24793.4040437.6724793.40

assets

Compensation 160000.00 160000.00

Other 20505.01 154778.82 20505.01

Total 230544.48 195216.49 230544.48

Other explanation:

132深圳市深粮控股股份有限公司2024年半年度报告全文

76.Income tax expense

(1)Income tax expense

In RMB

Item Current period Last period

Current income tax expenses 42734278.54 12023380.41

Deferred income tax expenses -8529453.68 -139471.71

Other 34334038.75

Total 34204824.86 46217947.45

(2)Adjustment process of accounting profit and income tax expenses

In RMB

Item Current period

Total profit 164568244.59

Income tax expenses calculated by statutory/applicable tax rate 41142061.15

Impact from different tax rate applicable with subsidiaries -1379087.66

Effect of adjusting income tax in the previous period -249965.30

Impact of cost expenses and losses unable to be deducted 35844629.16

Impact of unrecognized deferred income tax assets in current

period on deductible temporary differences or deductible losses 34616976.53

Gains/losses of joint ventures and associated enterprises

344625.76

measured with equity method

Non-taxable income(filled in with the sign of “-”) -68038250.15

Tax influence of utilizing unconfirmed deductible losses and

deductible temporary differences from previous years (filled in -5893814.53

with the sign of “-”)

Tax influence of additional deduction of R&D expenditure

-528943.57

(filled in with the sign of “-”)

Other -1653406.53

Income tax expenses 34204824.86

Other explanation:

77. Other comprehensive income

Refer to notes.

78. Items of cash flow statement

(1) Cash received with other operating activities concerned

In RMB

Item Current period Last period

Intercourse funds and deposit 1281111970.63 333482963.88

Government grants 1561534.17 1828301.20

Interest income 611096.36 315939.31

Other 4916809.72

Total 1288201410.88 335627204.39

Note of cash paid with other operating activities concerned:

Cash paid with other operating activities concerned

133深圳市深粮控股股份有限公司2024年半年度报告全文

In RMB

Item Current period Last period

Intercourse funds and deposit 1067273655.24 403829430.09

Operating daily expenses 43636917.27 37196560.20

Other 5735732.19 2062442.54

Total 1116646304.70 443088432.83

Note of cash paid with other operating activities concerned:

(2) Cash with other investment activities concerned

Cash received with other investment activities concerned

In RMB

Item Current period Last period

Significant cash received with other investment activities concerned:

In RMB

Item Current period Last period

Explanation on cash received with other investment activities concerned：

Cash paid with other investment activities concerned

In RMB

Item Current period Last period

Other 3784107.76

Total 3784107.76

Significant cash paid with investment activities

In RMB

Item Current period Last period

Cash paid with other operating activities concerned

(3)Cash with financing activities concerned

Cash received with financing activities concerned

In RMB

Item Current period Last period

Explanation on cash received with other financing activities concerned:

Cash paid with other financing activities concerned

In RMB

Item Current period Last period

Operating lease paid 12238276.69 9650074.57

Total 12238276.69 9650074.57

Explanation on cash paid with other financing activities concerned:

Changes in liabilities arising from financing activities

□Applicable ?Not applicable

134深圳市深粮控股股份有限公司2024年半年度报告全文

(4)Cash flow listed at net amount

Basis for being listed at net

Item Relevant facts Financial impact

amount

(5) Significant activities and financial impacts that do not involve current cash inflow and outflow but

affect the financial condition of the enterprise or may affect the cash flow of the enterprise 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 130363419.73 167662654.04

Add: Impairment provision for assets 79844125.33 45963705.57

Depreciation of fixed assets

consumption of oil assets and depreciation 55522639.34 56724826.02

of productive biology assets

Depreciation of right-of-use

assets 11347720.63 11088321.52

Amortization of intangible assets 17124485.76 15448850.55

Amortization of long-term

pending expenses 3949196.13 4063437.55

Loss from disposal of fixed

assets intangible assets and other long- -5219432.33 -1587775.37

term assets (income is listed with “-”)

Losses on scrapping of fixedassets (income is listed with “-“) 24008.93 0.00Loss from change of fair value(income is listed with “-“) 0.00 113524.84Financial expenses (income is

listed with “-”) 17092597.32 19324823.46

Investment loss (income is listed

with “-”) -3368123.85 -3107648.76

Decrease of deferred income tax

assets (increase is listed with “-”) -8349197.50 33567.33

Increase of deferred income tax

asset( (increase is listed with “-”) -180256.17 -206859.33

Decrease of inventory (increase

is listed with “-”) -340587903.58 -22562750.54

Decrease of operating receivable

accounts (increase is listed with “-”) -84838140.10 56159006.78

Increase of operating payable

accounts (decrease is listed with “-”) -31256584.05 -265614331.45

Other

Net cash flow arising from

operating activities -158531444.41 83503352.21

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 1100277.81

3. Net change of cash and cash equivalents:

135深圳市深粮控股股份有限公司2024年半年度报告全文

Ending balance of cash 73865526.29 100112129.74

Less: beginning balance of cash 230919769.29 53095469.26

Add: ending balance of cash

equivalents 0.00

Less: beginning balance of cash

equivalents 1469717.13 0.00

Net increasing of cash and cash

equivalents -158523960.13 47016660.48

(2) Net cash paid for obtaining subsidiary in the Period

In RMB

Amount

Including:

Including

Including:

Other explanation:

(3)Net cash received by disposing subsidiary in the Period

In RMB

Amount

Disposal of cash or cash equivalents received by subsidiaries in

the current period 16360810.20

Including:

Wuhan Jiacheng Biological Products Co. Ltd 16360810.20

Less: Cash and cash equivalents held by the company on the day

of loss of control 3118867.58

Including:

Wuhan Jiacheng Biological Products Co. Ltd 3118867.58

Including:

Net cash received from disposal of subsidiaries 13241942.62

Other explanation:

(4) Component of cash and cash equivalent

In RMB

Item Ending balance Beginning balance

I. Cash 73865526.29 230919769.29

Including: Cash on hand 9350.71 10106.10

Bank deposit available for

payment at any time 69016494.56 230835667.22

Other monetary fund available

for payment at any time 4839681.02 73995.97

II. Cash equivalent 1469717.13

Held-for-sale assets - monetary funds 1469717.13

Other

III. Ending balance of cash and cash

73865526.29232389486.42

equivalent

136深圳市深粮控股股份有限公司2024年半年度报告全文

(5)Items with restricted application scope still belong to cash and cash equivalents

In RMB

Reason for still belonging to

Item Current amount Last amount

cash and cash equivalents

(6)Monetary funds not belonging to cash and cash equivalent

In RMB

Reason for not belonging to

Item Current amount Last amount

cash and cash equivalents

Bank deposit 2973129.00 Lawsuit freezing

Guarantee deposit credit

Other monetary funds 4750000.00 5464837.31

deposit etc

Total 7723129.00 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” items 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 2841138.49

Including: USD 47006.93 7.1268 335008.99

EURO 0.00 7.6617 0.00

HKD 184404.43 0.9127 168302.24

Account receivable

Including: USD 287049.27 7.1268 2045742.74

EURO

HKD 320029.50 0.9127 292084.52

Long-term borrows

Including: USD

EURO

HKD

Other explanation:

(2) Explanation on foreign operational entity including as for the major foreign operational entity

disclosed main operation place book-keeping currency and basis for selection; if the book-keeping

currency is changed explain reasons

□ Applicable □ Not applicable

137深圳市深粮控股股份有限公司2024年半年度报告全文

80. Notes of changes of owners’ equity

Explain the name and adjusted amount in “Other” items 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

Including: USD 47006.93 7.1268 335008.99

EURO 0.00 7.6617 0.00

HKD 184404.43 0.9127 168302.24

Account receivable

Including: USD 287049.27 7.1268 2045742.74

EURO

HKD 320029.50 0.91268 292084.52

Long-term borrows

Including: USD

EURO

HKD

Other explanation:

(2) Explanation on foreign operational entity including as for the major foreign operational entity

disclosed main operation place book-keeping currency and basis for selection; if the book-keeping

currency is changed explain reasons

□ Applicable □ Not applicable

82.Lease

(1) The company as leasee

□Applicable ?Not applicable

(2)The company as lessor

Operating lease with the company as lessor

□Applicable ?Not applicable

Financing lease with the company as lessor

□Applicable ?Not applicable

Annual undiscounted lease payments for the next five years

□Applicable□Not applicable

Adjustment table for undiscounted lease receipts and net lease investments

138深圳市深粮控股股份有限公司2024年半年度报告全文

(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

Labor and social security benefits 4677082.95 5098176.11

Depreciation and amortization expenses 1622308.36 1780607.54

Material consumption 1648913.98 1038146.52

Maintenance and testing fees 445254.60 351178.38

Travel expenses 349424.09 368175.91

Office expenses 371605.05 337322.20

Intermediary fees 31654.72 56115.10

Other 392222.82 31757.24

Total 9538466.57 9061479.00

Among them: Expensed R&D

expenditure 9538466.57 9061479.00

Capitalized R&D expenses 0.00 0.00

1.R&D items that meet capitalization conditions

In RMB

Current increase Current decrease

Beginning Carried

Item Internal Recognized

balance forward to Endingdevelopme as

Other current balance

nt intangible

gains/losse

expenditure assets

s

Total

Major capitalized R&D items

Expected way of Specific basis for

Estimated Starting point of

Items R&D progress generating starting

completion time capitalization

economic benefits capitalization

Impairment reserve for R&D expenditure

In RMB

Item Beginning balance Current increase Current decrease Ending balance Impairment test

2. Important outsourced projects under research

Expected way of generating economic The criteria and specific basis for

Item

benefits determining capitalization or expensing

Other explanation:

139深圳市深粮控股股份有限公司2024年半年度报告全文

IX.Changes in consolidation range

1. Enterprise merger not under the same control

(1) Enterprise merger not under the same control

In RMB

Standard to Income of Net profit

Time point Cost of Ratio of Acquired determine acquiree of acquiree

Acquiree for equity equity equity way Equity Purchasing the from from

obtained obtained obtained obtained date purchasing purchasing purchasingway date date to date toperiod-end 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

Portion of goodwill/merger cost less than the shares of fair

value of identifiable net assets acquired

Explanation of the method for determining the fair value of merger costs

Explanation on contingent considerations

Main reasons for the formation of large goodwill

Other explanation:

(3) Identifiable assets and liabilities on purchasing date under the acquiree

In RMB

Fair value on purchasing date Book value on purchasing date

Assets:

Monetary funds

Account receivable

Inventory

Fixed assets

Intangible assets

Liability:

Loan

Account payable

Deferred income tax liabilities

Net assets

Less: Minority interests

Net assets acquired

140深圳市深粮控股股份有限公司2024年半年度报告全文

Determination method for fair value of the identifiable assets and liabilities:

Contingent liabilities assumed by the acquiree in a business merger:

Other explanation:

(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date

Is there any transaction that achieves business merger through multiple transactions and obtains control during the reporting period

□Yes □No

(5) On purchasing date or period-end of the combination combination consideration or fair value of identifiable assets and

liability for the acquiree are unable to confirm rationally

(6) Other explanation

2. Business combination under the same control

(1) Business combination under the same control in the Period

In RMB

Income of Net profit

the of the Income of Net profit

Equity Basis of Standard to combined combined the of the

ratio combined Combinati determine

party from party from

period- period- combined combinedAcquiree obtained in under the the party party

combinatio same on date combinatio begin of begin ofcombinatio combinatio during the during then control n date n to the n to the comparison comparison

combinatio combinatio period period

n date n date

Other explanation:

(2)Combination cost

In RMB

Consolidation cost

--Cash

-- 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 combined party on combination date

In RMB

Consolidation date Ending balance of last period

Assets:

Monetary funds

Account receivable

141深圳市深粮控股股份有限公司2024年半年度报告全文

Inventory

Fixed assets

Intangible assets

Liability:

Loan

Account payable

Net assets

Less: Minority interests

Net assets acquired

Contingent liability of the combined party assumed by the Company during combination:

Other explanation:

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 subsidiary

Is there any transaction or event of losing control of a subsidiary in this period

?Yes □No

In RMB

The The

differe amoun

nce Metho t of

betwee d and other

n the main compr

dispos assum ehensi

On the

al Fair ptions ve

date of

price value for incom

loss of

and the of determ e

control Gains

share remain ining related

the or

of the The ing the fair to

Propor Basis book losses

Dispos Dispos subsidi propor equity value equity

tion of for value arising

al al ary's tion of at the of invest

dispos The determ of the from

Name price manne net remain consoli remain ments

al at point ining remain remeas

of at the r at the assets ing dated ing in

the of the ing ureme

subsidi point point in the equity financi equity subsidi

point losing point equity nt of

ary of loss of loss consoli on the al at the ary

of loss control of at the remain

of of dated date of statem consoli compa

of losing consoli ing

control control financi loss of ent dated nies

control control dated equity

al control level financi transfe

financi at fair

statem on the al rred to

al value

ents date of statem invest

statem

corres loss of ent ment

ent

pondin control level profit

level

g to on the or loss

the date of or

dispos loss of retaine

al control d

invest earnin

ment gs

Wuhan 23242 51.00 Sale 2024- Transf 1156

142深圳市深粮控股股份有限公司2024年半年度报告全文

Jiache 130.2 % 02-29 er of 849.46

ng 0 control

Biolog right

ical

Produc

ts Co.Ltd

Other explanation:

Is there any situation where investments in subsidiaries are disposed by steps through multiple transactions and control is lost in

the current period

□Yes □No

5. Other reasons for changes in consolidation range

Consolidation scope changes caused by other reasons (eg. establish new subsidiaries liquidate subsidiaries etc.) and the related

circumstances:

6.Other

X. Equity in other entities

1. Equity in subsidiaries

(1) Membership of enterprise group

Subsidiary Registered Main place of Registrationcapital operation place Business nature

Shareholding ratio ratio Acquisition

Directly Indirectly way

SZCG 153000000 Shenzhen

Combine under

City Shenzhen City Grain & oil trading 100.00% the same0.00 control

Hualian Grain & 100000000. Shenzhen Combine under

Oil 00 City

Shenzhen City Grain & oil trading 100.00% the same

control

Shenzhen Flour 30000000.0 Shenzhen

Combine under

City Shenzhen City Flour processing 100.00% the same0 control

Shenliang Combine under

Quality 8000000.00 Shenzhen

Inspection City

Shenzhen City Inspection 100.00% the same

control

Hainan Grain 10000000.0 Combine under

and Oil Haikou City Haikou City Feed production 100.00% the same0 control

Combine under

Doximi 10000000.0 ShenzhenCity Shenzhen City E-commerce 100.00% the same0 control

Big Kitchen 10000000.0 Shenzhen

Sales and processing of Combine under

City Shenzhen City grainoil and relevant 70.00% the same0 products control

Combine under

Yingkou Storage 1000000.00 Yingkou City Yingkou City Storage 100.00% the same

control

Cold Chain 10000000.0 Shenzhen On-line operation of fresh Combine under

Logistic City Shenzhen City food 100.00% the same0 control

Shenliang

9500000.00 Shenzhen Shenzhen City

Property development and Combine under

City 100.00%Property management the same

143深圳市深粮控股股份有限公司2024年半年度报告全文

control

International 221000000. Dongguan Dongguan Port operation food Combine under

Food 00 City City production

100.00% the same

control

Dongguan Grain 100000000. Dongguan Dongguan Combine under

and Oil City City Food production 100.00% the same00 control

Dongguan 298000000. Dongguan Dongguan Combine under

Logistics City City Storage logistics 49.00% 51.00% the same00 control

Shuangyashan 100000000. Shuangyasha Shuangyashan

Construction of food base Combine under

n City City and development of related 51.00% the same00 complementary facilities control

Shenliang 30000000.0 Shenzhen

Hongjun City Shenzhen City Catering 51.00% Establishment0

Dongguan 10000000.0 Dongguan Dongguan

Hualian City City Grain and oil trade 100.00% Establishment0

Shenliang

Property 5000000.00 ShenzhenCity Shenzhen City Property management 100.00% EstablishmentManagement

Shenbao 207451300. Shenzhen

Huacheng City Shenzhen City Manufacturing 100.00% Establishment00

Wuyuan Ju Fang 290000000.Yong Shangrao City Shangrao City Manufacturing 100.00% Establishment00

Huizhou 60000000.0

Shenbao Huizhou City Huizhou City Comprehensive 100.00% Establishment0

Shenbao 50000000.0 Shenzhen

Investment City Shenzhen City Investment management 100.00% Establishment0

Shenbao Tea 15000000.0 Shenzhen

Culture City Shenzhen City Commercial trade 100.00% Establishment0

50000000.0 Shenzhen

Shenliang Hongli Shenzhen City Gain and oil wholesale 100.00% Establishment

0 City

Ju Fang Yong 175000000. Hangzhou

Holding City Hangzhou City Comprehensive 100.00% Establishment00

Fuhaitang

Catering 1000000.00

Hangzhou

City Hangzhou City Catering industry 100.00% Establishment

Fuhaitang Business

Ecology 2000000.00 Hangzhou Hangzhou City Tea planting production 100.00% combination

Technology City and sales not under thesame control

Shenbao Rock 20700000.0 Wuyishan

Tea City Wuyishan City Manufacturing 100.00% Establishment0

Pu’er Tea Supply 20000000.0

Chain Pu’er City Pu’er City Wholesale business 100.00% Establishment0

30150000.0

Shenliang Food Huizhou City Shenzhen City Manufacturing 100.00% Establishment

0

Huizhou

5000000.00 Huizhou City Huizhou City Wholesale business 100.00% Establishment

Shenliang Food

10000000.0 Shenzhen Platform construction

Zhenpin Market Shenzhen City 51.00% Establishment

0 City promotion and operation

Explanation on shareholding ratio ratio in subsidiary different from ratio of voting right:

Explanation on basis for controlling the invested entity with half or below voting rights held and without controlling invested entity

but with over half and over 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:

144深圳市深粮控股股份有限公司2024年半年度报告全文

(2) Important non-wholly-owned subsidiary

In RMB

Subsidia shareholding ratio ratio of Gains/losses attributable to Dividend announced to distribute Ending equity

ry minority shareholders minority in the Period for minority in the Period of minority

Shuangy

ashan 49.00% 81812.58 29188287.66

Explanation on the situation where the shareholding ratio of minority shareholders is different from the voting right ratio of minority

shareholders:

Other explanation:

(3) Main financial information of the important non-wholly-owned subsidiary

In RMB

Ending balance Beginning balance

Subsi Curre Non Total Current Non Total Curre Non Total Current Non Totaldiary nt current liabiliti current liabilit nt current liabiliti current liabilit

assets assets assets es liabilities ies assets assets assets es liabilities ies

Shua 1801 16674 10718 10718 8578 23791 17851 17851

ngys 148736 1521302706. 9377. 1443.6 1443. 1145. 1617. 0647.6 0647.han 670.63 471.7398 61 1 61 45 18 2 62

In RMB

Current Period Last Period

Subsidi

ary Operating Net

Total Net Total

comprehensive Cash flow from Operating profi comprehensive Cash flow fromincome profit income operation activity income t income operation activity

191

Shuang 7084376 16696 3383812

yashan 166964.44 2080725.70 507. 191507.02 2197667.830.11 4.44 9.44

02

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 changes 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

145深圳市深粮控股股份有限公司2024年半年度报告全文

--Fair value of non-cash assets

Purchase cost/total disposal consideration

Less: Subsidiary’s share of net assets calculated based on the

proportion of acquired/disposed equity

Difference

Including: Adjust capital reserve

Adjust surplus reserve

Adjust retained 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 Business nature investment in

ated enterprise operation place Directly Indirectly joint ventureand associated

enterprise

Zhuhai

Hengxing Feed Zhuhai Zhuhai Aquatic fee andIndustrial Co. animal fee 40.00% Equity method

Ltd.Shenliang

Intelligent

Wulian Equity

Investment Equity

Fund Shenzhen Shenzhen investment; 49.02% Equity method

(Shenzhen) investment

Partnership consultant

Enterprise

(Limited)

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 Beginning balance/Last period

Current assets

Including: cash and

cash equivalent

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Minority interests

Shareholders’ equity

attributable to parent

company

Share of net assets

146深圳市深粮控股股份有限公司2024年半年度报告全文

calculated by

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 income

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 year

Other explanation

(3) Main financial information of important associated enterprises

In RMB

Ending balance/Current period Beginning balance/Last period

Shenliang Intelligent Shenliang Intelligent

Zhuhai Hengxing Feed Wulian Equity Zhuhai Hengxing Feed Wulian Equity

Industrial Co. Ltd. Investment Fund Industrial Co. Ltd. Investment Fund(Shenzhen) Partnership (Shenzhen) Partnership

Enterprise (Limited) Enterprise (Limited)

Current assets 258912540.40 20641526.55 206533219.54 20506045.15

Non-current assets 20917350.71 35159782.75 22214230.53 34910923.94

Total assets 279829891.11 55801309.30 228747450.07 55416969.09

Current liabilities 164910902.36 170000.00 115358256.12 170000.00

Non-current liabilities 29017970.43 29663266.41

Total liabilities 193928872.79 170000.00 145021522.53 170000.00

Net asset 85901018.32 55631309.30 83725927.54 55246969.09

Minority interests

Equity attributable to

shareholder of parent 85901018.32 55631309.30 83725927.54 55246969.09

company

Share of net assets

measured by 34167810.49 27270293.34 33490371.02 27082064.25

shareholding

Adjustment 162764.46 -174.47

--Goodwill

--Unrealized profit of

internal trading

-- Other 162764.46 -174.47

147深圳市深粮控股股份有限公司2024年半年度报告全文

Book value of equity

investment in 34167810.49 27270293.34 33653135.48 27081889.78

associated enterprise

Fair value of the equity

investment of

associated enterprise

with public offers

concerned

Operating income 151719295.67 267239221.76

Net profit 1286687.52 384340.21 1868302.32 -403077.01

Net profit of

discontinuing operation

Other comprehensive

income

Total comprehensive

income 1286687.52 384340.21 1868302.32 -403077.01

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 Beginning balance/Last Period

Joint venture:

Amount based on shareholding ratio ratio

Associated enterprise:

Total book value of investment 10848307.77 13273901.22

Total amount calculated in terms of

shareholding ratio ratio

--Net profit -2425593.45 -2828725.22

--Other comprehensive income 0.00

--Total comprehensive income -2425593.45 -2828725.22

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

Joint venture/Associated Cumulativederecognized Derecognized losses not recognized in the Period Cumulative derecognizedenterprise losses (or net profit enjoyed in the Period) losses at period-end

Changzhou Shenbao

Chacang E-business Co. ltd. 10600036.50 -29640.62 10570395.88

Other explanation

148深圳市深粮控股股份有限公司2024年半年度报告全文

(7) Unconfirmed commitment related to joint venture investment

(8) Intangible liabilities related to joint venture or associated enterprise investment

4. Major joint operation

Shareholding ratio/ shares enjoyed

Name Main place of operation Registration place Business nature 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 the 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

Amount

Current Other

booked into Amount carried

Accounting increase in changes in Asset/income

Beginning balance non-business forward to other Ending balance

title government current related

income in income

grant period

current period

Deferred

82819873.24 4057114.25 3982362.15 82894625.34 Asset related

income

3. Government grant booked into current gains/losses

□Applicable □Not applicable

In RMB

Accounting title Current period Last period

Other revenue 5540994.27 4215117.48

Other explanation:

149深圳市深粮控股股份有限公司2024年半年度报告全文

XII. Risk related with financial instrument

1. Various risks arising from financial instruments

Our business operation makes the Company exposed to various financial risks such as credit risk liquidity risk and market risk

(Including exchange rate risk interest rate risk and other price risk).The Company disperses the risk of financial instruments through appropriate diversified investment and business portfolio and

reduces the risk concentrating on a single industry specific region or specific counterparty 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 debt

investments financial guarantee contracts the debt instrument investments measured at fair value and with its variation reckoned in

current gain/loss that are not included in the scope of impairment assessment and derivative financial assets etc. As of the balance

sheet date the carrying value of the financial assets represented its maximum exposure to credit risk;

Monetary funds of the Company are mainly the bank deposits in reputable state-owned banks and other larger and medium-sized

listed banks with high credit ratings and the company believes that it is not exposed to significant credit risks and will hardly incur

significant losses due to the bank defaults.Furthermore for bill receivable account receivables and other account receivables the Company establishes relevant policies to

control exposure of credit risk. The Company appraises customers’ credit quality based on their financial position possibility to

obtain guarantee from third parties credit history and other factors such as prevailing market conditions and set corresponding credit

terms. Customers’ credit history would be regularly monitored by the Company. For those customers who have bad credit history

the Company will call collection in written form shorten credit term or cancel credit term to ensure its overall credit risk is under

control.As of June 30 2024 the account receivable from top five clients accounted for 45.33% of the Company’s total account receivable.The maximum credit risk exposure equals to the carrying value of each financial asset in balance sheet (including derivative financial

instrument). The Company has not provided any guarantee which would otherwise make the Company exposed to credit risk except

for the financial guarantee carried in Note “XII. Related party and related transaction”.

2. Liquidity risk

Liquidity risk refers to the risk that a company will run short of funds to meet its obligations settled by delivering cash or other

financial assets.It is the Company’s policy to ensure that sufficient cash is available to meet debt obligations as they fall due. Liquidity risk is

centrally controlled by the Company’s finance department. By monitoring cash balances readily realizable marketable securities and

rolling forecasts of cash flows for the next 12 months the finance department ensures that the company has sufficient funds to

service its debts under all reasonable forecasts. In addition it continues to monitor whether borrowing agreement is complied with

and seeks for commitment from major financial institutions for provision of sufficient back-up fund so as to satisfy capital

requirement in a short and long term.

150深圳市深粮控股股份有限公司2024年半年度报告全文

The financial liabilities of the company are presented as undiscounted contract cash flows at maturity as follows:

3. Market risk

The market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments will

fluctuate due to changes in market prices including exchange rate risk interest rate risk and other price risks.

3.1 Interest risk

Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in

market interest rates.Interest-bearing financial instruments with fixed rates and floating rates expose the Company to fair value interest rate risk and cash

flow interest rate risk respectively. The Company determines the ratio of fixed interest rate instruments to floating interest rate

instruments according to the market environment and maintains an appropriate portfolio of fixed and floating interest rate

instruments through regular review and monitoring. When necessary the Company will use interest rate swap instruments to hedge

interest rate risk.

3.2 Exchange rate risk

Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to the changes in

foreign exchange rates.The Company continuously monitors the foreign currency transactions and the scale of foreign currency assets and liabilities to

minimize foreign exchange risks. In addition the company may also sign forward foreign exchange contracts or currency swap

contracts to avoid exchange rate risks. During the current period and the previous period the Company did not sign any forward

foreign exchange contracts or currency swap contracts.

3.3 Other price risk

Other price risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to changes in

market prices other than exchange rate risk and interest rate risk.Other price risk of the Company arises mainly from investment in various types of equity instruments and is exposed to the risks

of changes in the prices of equity instruments.

2.Hedge

(1) Risk management for hedge business

□Applicable□Not applicable

(2) The company conducts eligible hedging business and applies hedging accounting

In RMB

Book value related to Adjustment of Sources of hedge Impact of hedge

hedged items and

Item accumulated fair value

effectiveness and hedge accounting on the

hedging instruments hedging included in the ineffectiveness company’s financial

recognized book value statements

151深圳市深粮控股股份有限公司2024年半年度报告全文

of hedged items

Type of hedge risk

Type of hedge

Other explanation

(3) The company conducts hedging business for risk management. It is expected to achieve risk management goals but has

not applied hedging 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: Nil

XIII. Disclosure of fair value

1. Ending fair value of the assets and liabilities measured by fair value

In RMB

Item Ending fair valueFirst-order Second-order Third-order Total

I. Sustaining measured by fair value -- -- -- --

(iii) Other equity instrument investment 57500.00 57500.00

II. Non-sustaining measured by fair value -- -- -- --

152深圳市深粮控股股份有限公司2024年半年度报告全文

2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-

order

3. Valuation technique and qualitative and quantitative information on major parameters for the fair

value measure sustaining and non-persistent on second-order

4.Valuation technique and qualitative and quantitative information on major parameters for the fair

value measure sustaining and non-persistent on third-order

5.Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure

sustaining and non-persistent on third-order

6. Sustaining items measured by fair value as for the conversion between at all levels reasons for

conversion and policy for conversion time point

7. Changes of valuation technique in the Period

8. Financial assets and liabilities not measured by fair value

9. Other

XIV.Related party and related transactions

1. Parent company

Ratio of Ratio of voting

Registrat Registere

Parent company Business nature shareholding on the right on the

ion place d capital

Company Company

Shenzhen Investing in industry development

Agriculture and Shenzhe 5000

Food Investment operation and management of the ownn million 63.79% 72.02%Holding Group Co. property yuan

Ltd.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:

2. Subsidiaries of the Company

For more details of subsidiaries of the Company please refer to “Note X(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 X(3)”.Other joint venture and associated enterprise that have related transaction with the Company in the Period or that have balance

153深圳市深粮控股股份有限公司2024年半年度报告全文

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

Guangxi Higreen Agricultural Products International Logistics

Holding subsidiary of parent company

Co. Ltd.Shenzhen Higreen International Agricultural Products Logistic

Holding subsidiary of parent company

Management Co. Ltd

Shenzhen Zhenpin Group Co. Ltd Holding subsidiary of parent company

Shenzhen Zhenchu Supply Chain Co. Ltd. Holding subsidiary of parent company

Xi’an Moer Agricultural Products Co. Ltd Holding subsidiary of parent company

Shenzhen Shenliang Cold Transport Co. Ltd. Holding subsidiaries of the Company’s associated enterprise

Subsidiaries of the Company’s shareholders controlled by the

Shenzhen Shennong Kitchen Co. Ltd

ultimate controlling party

Subsidiaries of the Company’s shareholders controlled by the

Zhanjiang Haitian Aquatic Feed Co. Ltd

ultimate controlling party

Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co. Subsidiaries of the Company’s shareholders controlled by the

Ltd ultimate controlling party

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 2661837.76 N 5091557.43

Tech. Co. Ltd

Shenzhen Procurement of goods

Shennong Kitchen 2303894.07 N 852212.56

Co. Ltd

Shenzhen Warehousing

Shenliang Cold services/Transportation

Transport Co. services 163398.75 N 137432.79

Ltd.Goods sold/labor service providing

In RMB

Related party Content of related transactioncontent Current period Last period

Guangxi Higreen Agricultural Grain and oil sales

Products International 25911.50 0.00

Logistics Co. Ltd.Shenzhen Duoxi Equity Tea sales and property

Investment Fund Management management services 15546.90 9433.95

Co. Ltd.

154深圳市深粮控股股份有限公司2024年半年度报告全文

Shenzhen Agricultural Tea sales grain and oil sales

14538.058240.71

Products Group Co. Ltd

Shenzhen Shenliang Cold Grain sales warehousing

Transport Co. Ltd. services tea sales

98874.41512330.45

Shenzhen Shennong Kitchen Grain and oil sales tea sales

114073.4941203.54

Co. Ltd

Shenzhen Zhenpin Group

Property management service 210774.85 0.00

Co.Ltd.Shenzhen Zhenchu Supply Grain and oil sales and

Chain Co. Ltd. transportation services

678685.83971414.88

Shenzhen Food Materials

Grain and oil sales 2045.70 0.00

Group Co. Ltd

Shenzhen Cabbage

Grain and oil sales 2591.15 0.00

Technology Co. Ltd

Xi’an Moer Agricultural

Grain and oil sales 38867.25 0.00

Products Co. Ltd

Explanation on goods purchasing labor service providing and receiving

(2) Related trusteeship management/contract & entrust management/outsourcing

Trusteeship management/contract:

In RMB

Client/Contr Entrustingparty/Contract Trustee/ass Truste Truste Managed earnings /pricing Managed earnings confirmed inact-out party or ets contract e /start e /ends of the contract earnings the period / contract earnings

Related managed/contract:

Entrusted management/outsourcing:

In RMB

Client/Contra Entrustingparty/Contract Trustee/ass Truste Truste Managed earnings /pricing Managed earnings confirmed inct-out party or ets contract e /start e /ends of the contract earnings the period / contract earnings

Related management/ outsourcing:

(3) Related lease

The company acts as the lessor:

In RMB

Lessee Assets Lease income recognized in Lease income recognized lasttype the Period Period

Shenzhen Shenyuan Data Technology Co. ltd. Operatingsite 223111.41 261994.26

The company acts as the lessee:

In RMB

Variable lease Interest expense

Simplified rental fees payments not on lease

for short-term leases included in the Rent paid liabilities Increased right-

and low value asset measurement of assumed of- use assets

Lessor Assets leases (if applicable) lease liabilitiestype (if applicable)

Curren Last Curren Last Curren Last

Current Last Current Last

t perio t perio t perio

period period period period

period d period d period d

Shenzhen Office 7885.50 15771.0 7885.50 15771.0

155深圳市深粮控股股份有限公司2024年半年度报告全文

Higreen space 0 0

Internationa

l

Agricultural

Products

Logistic

Manageme

nt Co. Ltd

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

Guarantor Guarantee amount Guarantee start date Guarantee expiry date Whether the guarantee has been fulfilled

Explanation on 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

(8) Other related transaction

6. Accounts receivable from related parties

（1）Items receivable

In RMB

Item Related party Ending balance Beginning balance

Book balance Book balance Book balance Bad debt provision

Guangxi Higreen

Agricultural

Account receivable 29280.00 0.00 0.00 0.00

Products

International

156深圳市深粮控股股份有限公司2024年半年度报告全文

Logistics Co. Ltd.Shenzhen

Agriculture and

Account receivable Food Investment 16388.00 158.84 15884.00 158.84

Holding Group

Co. Ltd.Shenzhen Duoxi

Equity Investment

Account receivable 1123.20 0.00 1123.20 0.00

Fund Management

Co. Ltd.Shenzhen

Agricultural

Account receivable 4788.00 46.56 4656.00 46.56

Products Group

Co. Ltd

Shenzhen

Account receivable Shenliang Cold 98.83 98.83 9882.80 98.83

Transport Co. Ltd.Shenzhen

Account receivable Shennong Kitchen 70175.00 177.63 272089.00 2720.89

Co. Ltd

Shenzhen Zhenchu

Account receivable Supply Chain Co. 281544.06 3834.85 437388.10 4420.95

Ltd.Shenzhen Cabbage

Account receivable Technology Co. 43920.00 0.00 0.00 0.00

Ltd

Huizhou Higreen

Agricultural

Account receivable Products 23220.00 232.20 23220.00 232.20

International

Logistics Co. Ltd.Shenzhen

Agriculture and

Other account

Food Investment 1001000.00 0.00 1001000.00 0.00

receivable

Holding Group

Co. Ltd.Shenzhen Higreen

International

Other account Agricultural

50000.000.0050000.000.00

receivable Products Logistic

Management Co.Ltd

Shenzhen

Other account

Shenyuan Data 466800.00 4668.00 466800.00 4668.00

receivable

Tech. Co. Ltd

Shenzhen

Shichumingmen

Other account

Catering 1908202.67 1908202.67 1908202.67 1908202.67

receivable

Management Co.Ltd.Zhanjiang

Changshan

Other account (Shenzhen)

5520.005520.005520.005520.00

receivable Ecological

Aquaculture Co.Ltd

Other account Changzhou 24608742.46 22187644.18 24608742.46 22187644.18

157深圳市深粮控股股份有限公司2024年半年度报告全文

receivable Shenbao Chacang

E-business Co.Ltd.Shenzhen

Other account

Shenliang Cold 10000.00 0.00 10000.00 0.00

receivable

Transport Co. Ltd.Shenzhen Duoxi

Other account Equity Investment

0.000.002000.000.00

receivable Fund Management

Co. Ltd.

(2)Payable item

In RMB

Item Related party Ending book balance Opening book balance

Shenzhen Shennong Kitchen

Contract liability 1419.00 0.00

Co. Ltd

Shenzhen Municipal People’s

Government State-owned

Account payable 45130521.99 23263563.60

Assets Supervision &

Administration Commission

Shenzhen Duoxi Equity

Other account payable Investment Fund Management 41486.00 41486.00

Co. Ltd.Shenzhen Shennong Kitchen

Other account payable 550000.00 275000.00

Co. Ltd

Shenzhen Shenyuan Data

Other account payable 427310.00 1727021.67

Tech. Co. Ltd

Shenzhen Agriculture and

Other account payable Food Investment Holding 146162941.72 146162941.72

Group Co. Ltd.Zhanjiang Haitian Aquatic

Other account payable 20000.00 20000.00

Feed Co. Ltd

Zhanjiang Changshan

Other account payable (Shenzhen) Ecological 8095680.19 8069454.17

Aquaculture Co. Ltd

Shenzhen Shenyuan Data

Account payable 4500.00 87671.67

Tech. Co. Ltd

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

158深圳市深粮控股股份有限公司2024年半年度报告全文

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

XVI. Commitment or contingency

1. Important commitments

Important commitments on balance sheet date

As of June 30 2024 there are no other significant 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

SN Plaintiff Defendant Cause Court Target(’0000yuan) Progress

Longgang District

Shenzhen Yanxin Part of lease People’s Court of

1 Industrial Co. SZCG contract dispute Shenzhen 158.38 Pending

Ltd(Yanxin Industrial) lawsuit Guangdong

Province

Nanshan District

2 Housing and Urban- SZCG Contract dispute

Shenzhen

Rural Development lawsuit Intermediate 389.88 Pending

Bureau People's Court

Zhonggang Construction Construction Maritime Court of

Group Co. Haizhu District3 Ltd(Zhonggang Dongguan Logistics

engineering

contract dispute Guangzhou City 2800.54 Pending

Construction) lawsuit GuangdongProvince

Zhongji Guoliang

4 Trade(Liaoning) Co. Hualian Company SZCG Disputes over

Shenzhen

SZCH sales contracts Intermediate 297.31 PendingLtd(Zhongji Guoliang) People's Court

Guangdong Yongshen

Construction Engineering Construction The First People’s

5 Peng Miaosheng Co. Ltd International engineering Court of Dongguan

Food Industrial Park contract dispute City Guangdong

453.51 Pending

Xu Jianqiang lawsuit Province

6 Shanghai Baoyan

Hangzhou Ju Fang Yong Binjiang District

Catering Co. Ltd. Holding Co. Ltd and

Enforcement People's Court of 104.37 Pending

Shenzhen Shenshenbao objection case Hangzhou

159深圳市深粮控股股份有限公司2024年半年度报告全文

SN Plaintiff Defendant Cause Court Target(’0000yuan) Progress

Investment Co. Ltd Zhejiang province

1 Lease Contract Dispute between Yanxin Industrial and SZCG (Part)

On April 12 2022 the plaintiff Yanxin Industrial sued SZCG in the Longgang District People’s Court of Shenzhen requesting the

defendant to pay the plaintiff the following amounts totaling 1583800 yuan: 1) Compensation for the plaintiff’s housing renovation

expenses of 1263800 yuan (including fire engineering construction costs of 1840000 yuan purchase of fire equipment costs of

900000 yuan (buildings 1-6) and decoration engineering construction costs of 3062000 yuan); 2) Compensation for the plaintiff’s

water and electricity facility maintenance fees of 120000 yuan (18000 yuan per year for building 3); 3) Compensation for the

plaintiff’s expenses of converting the property from industrial to commercial use amounting to 200000 yuan; 4) Litigation costs to

be borne by the defendant.On January 11 2023 the Longgang District People’s Court of Shenzhen made a judgment: the defendant SZCG shall pay the

plaintiff Yanxin Industries 640000.00 yuan for house renovation compensation within seven days from the effective date of this

judgment; the other claims of the plaintiff Yanxin Industries are dismissed. The case acceptance fee is 24200.00 yuan with

11200.00 yuan borne by the plaintiff and 13000.00 yuan borne by the defendant.

Both the plaintiff and the defendant have appealed. On January 26 2024 the Guangdong Province Shenzhen Intermediate People’s

Court made a ruling: the first-instance judgment is revoked; the case is remanded to the Longgang District People’s Court of

Shenzhen Guangdong Province for retrial.As of now the Company is unable to determine the financial impact of potential liabilities and the estimated liabilities for this

pending lawsuit have not been recognized.

2 Contract Dispute between Nanshan District Housing and Urban-Rural Development Bureau and SZCG

On September 1 2022 the Nanshan District Housing and Urban-Rural Development Bureau filed a lawsuit with the Futian District

People’s Court of Shenzhen against SZCG requesting: 1) Judgement for the defendant Cereals Group to fulfill its assistance

obligation by issuing corresponding legal and tax-inclusive invoices to the plaintiff for the repurchase amount with an invoice

amount of 3.8988 million yuan. 2) The litigation costs in this case shall be borne by the defendant.On January 26 2024 the Futian District People’s Court of Shenzhen ruled: I) The defendant SZCG shall issue legal and tax-

inclusive invoices to the plaintiff Nanshan District Housing and Urban-Rural Development Bureau in the amount of 3.8988 million

yuan within ten days from the effective date of this judgment. II) Dismiss the counterclaim request of the defendant SZCG.On February 7 2024 SZCG filed an appeal. The case is currently under review.Note: The assets of Dingtou Village project belong to the assets that have been restructured and listed for divestment and have

been divested from the company.As of now our company does not need to recognize estimated liabilities for this pending lawsuit.

3 Construction Engineering Contract Dispute between Zhonggang Construction and Dongguan Logistics

On June 30 2023 Zhonggang Construction filed a lawsuit against Dongguan Logistics with the Guangzhou Maritime Court.GuangDong Province Planning & Designing Institute for Water Transportation Co. Ltd is the third party(hereinafter referred to as

“Planning & Design Institute” requesting: 1) Judgment for the defendant to pay the plaintiff construction fees of 15614000.00

160深圳市深粮控股股份有限公司2024年半年度报告全文yuan; 2) Judgment for the defendant to pay overdue payment interest to the plaintiff (specific calculation detailed in the “InterestCalculation Table” currently totaling 6371300.00 yuan until June 30 2023); 3) Judgement for the defendant to compensate the

plaintiff for the delay in the construction period and a loss of 6.02 million yuan; 4) Judgment for the defendant to bear all litigation

costs in this case. The total amount of the aforementioned first and third litigation requests is currently 28005400.00 yuan.On September 15 2023 the plaintiff submitted an application to the court to conduct an appraisal of the disputed issues in the case.On November 6 2023 the appraisal institution was determined to be Nanjing Yongdao Engineering Consulting Co. Ltd. Zhuhai

Branch.On December 4 2023 the appraisal institution conducted on-site inspections at the first phase terminal of Dongguan

Logistics. On December 18 2023 both parties submitted additional appraisal materials in accordance with the requirements of the

court and the appraisal institution and provided cross-examination opinions on the additional materials submitted by the other party.On May 17 2024 the case was formally heard in the Guangzhou Maritime Court. Before the conclusion of the court investigation

the plaintiff amended its claims as follows: 1. The defendant shall pay the plaintiff 16014585.88 yuan in project payments; 2. The

defendant shall pay the plaintiff interest as follows: 553266.17 yuan for overdue progress payments 334024.12 yuan on the

unpaid balance up to 85% of the total construction costs after project completion 1869352.17 yuan on the unpaid balance up to

95% of the settlement amount after project acceptance and 3739669.73 yuan for the delayed return of the warranty deposit (with

the total interest calculated up to June 30 2023 being 6496312.19 yuan). Interest is to be calculated on the outstanding amount

from the date of delay until full payment at 1.5 times the corresponding loan interest rate published by the People's Bank of China

from October 24 2015 to August 19 2019 and at 1.5 times the Loan Prime Rate (LPR) from October 21 2019 onwards; 3. The

defendant shall compensate the plaintiff 6226500 yuan for construction delay losses (593 days at 10500 yuan/day); 4. The

defendant shall bear the judicial appraisal fees in proportion to the outcome of the appraisal claims; 5. The defendant shall bear all

litigation costs.On July 29 2024 the Guangzhou Maritime Court ruled: 1. The defendant Dongguan Logistics shall pay the plaintiff Zhonggang

Construction 15213127.76 yuan in project payments plus interest at the Loan Prime Rate (LPR) published by the National

Interbank Funding Center from December 31 2019 until full payment is made; 2. The defendant shall pay the plaintiff 106696.65

yuan in appraisal fees; 3. All other claims by the plaintiff are dismissed.On August 9 2024 Dongguan Logistics filed an appeal with the Guangdong High People's Court requesting: 1) The annulment of

the first item of the original judgment (2023) Yue 72 Minchu No. 1329 and a revised judgment for the appellant to pay

5286821.63 yuan in project payments with corresponding interest; 2) The annulment of the second item of the original judgment

with a recalculation of the appraisal fees based on the revised amount; 3) That all litigation costs for the first and second instances

be borne by the appellee.As of now our company is unable to determine the financial impact of potential liabilities and estimated liabilities for this pending

lawsuit have not been recognized.

4 Contract Dispute Lawsuit between Zhongji Guoliang and Hualian Company SZCG and SZCH

Zhongji Guoliang filed a lawsuit against Hualian Company (the first defendant) SZCG (the second defendant) and SZCH (the third

defendant) with the Futian District People’s Court of Shenzhen requesting: 1) Judgment for the first defendant to refund the

deducted payment of 2.7254 million yuan and compensate the plaintiff for overdue losses (based on the deducted payment of 2.7254

million yuan calculated at the one-year loan market quoted interest rate (LPR) plus 50% from November 12 2021 to the date of

payment currently totaling 0.2477 million yuan until July 11 2023); 2) the second defendant and the third defendant to jointly

assume the liability for the first litigation request; 3) Litigation fees property preservation fees and other litigation costs to be borne

by the three defendants (the total amount for the first litigation request currently amounts to 2.9731 million yuan until July 11 2023).

161深圳市深粮控股股份有限公司2024年半年度报告全文

The defendant Hualian Company filed a counterclaim request: 1) Order the counterclaim defendant Zhongji Guoliang to pay the

remaining payment and overdue payment interest totaling 943.5 yuan to the counterclaim plaintiff Hualian Company (the overdue

payment interest is based on the remaining payment of 943.5 yuan and is charged 50% based on the one-year loan market

quotation rate LPR calculated from September 30 2021 to the date of payment settlement and temporarily calculated as 108.68

yuan until October 23 2023); 2) Order the defendant Zhongji Guoliang in the counterclaim to pay lawyer's fees of 88000.00 yuan

to the plaintiff Hualian Company in the counterclaim; 3) Order that all counterclaim costs in this case be borne by the defendant

Zhongji Guolian.On August 7 2023 the Futian District People’s Court of Shenzhen issued a civil ruling to seal seize or freeze property under the

name of Hualian Company worth 2.9731 million yuan.On April 16 2024 the Futian District People's Court of Shenzhen issued the judgment (2023) Yue 0304 Minchu No. 40246: 1.The defendant (counterclaim plaintiff) Shenzhen Hualian is ordered to return 2011329.7 yuan to the plaintiff (counterclaim

defendant) Zhongji Guoliang within ten days from the effective date of this judgment and to pay interest on this amount

calculated at the one-year Loan Prime Rate (LPR) from November 12 2021 until full payment; 2. The court dismisses the other

claims of the plaintiff (counterclaim defendant) Zhongji Guoliang; 3. The court dismisses all counterclaims of the defendant

(counterclaim plaintiff) Shenzhen Hualian.On April 16 2024 the Futian District People's Court of Shenzhen granted the plaintiff Zhongji Guoliang permission to withdraw

the lawsuit against the defendants SZCG and SZCH.On April 30 2024 Shenzhen Hualian filed an appeal with the Shenzhen Intermediate People's Court requesting: 1) The reversal

of the first item of judgment No. (2023) Yue 0304 Minchu 40246 and the dismissal of all claims by the appellee; 2) The reversal

of the third item of the original judgment with a revised judgment in favor of the appellant's claims; 3) That all litigation costs for

both the first and second instances be borne by the appellee.On May 6 2024 Zhongji Guoliang filed an appeal with the Shenzhen Intermediate People's Court requesting: 1) The reversal of

the second item of the civil judgment No. (2023) Yue 0304 Minchu 40246 with a revised judgment to calculate interest on

2011329.7 yuan at a rate 50% above the one-year Loan Prime Rate (LPR) published by the National Interbank Funding Center

from November 12 2021 until full payment is made; 2) That the litigation costs for the second instance be borne by the appellee.As of now our company believes that the first-instance court made significant errors and there is a strong likelihood that the

second-instance court will dismiss the appellee's claims. Therefore no provision for contingent liability has been recognized for

this pending litigation.

5 Construction Contract Dispute Lawsuit between Peng Miaosheng and Food Industry Park Yongsheng Construction

and Xu Jianqiang Construction

On October 24 2023 Peng Miaosheng filed a lawsuit with the First People’s Court of Dongguan City with the following litigation

requests: 1) Demand for Defendant Xu Jianqiang to pay construction labor fees of 4.0973 million yuan; 2) Demand for Defendant Xu

Jianqiang to pay interest on construction labor fees. Calculated at the one-year loan market quoted interest rate of 3.85% published by

the National Interbank Funding Center from January 6 2021 until the full repayment of the construction fee of 4.0973 million yuan.The interest accrued until October 24 2023 amounts to 0.4377 million yuan; 3) Yongsheng Construction to bear joint and several

payment responsibility for the aforementioned fee of 4.0973 million yuan and interest; 4) Dongguan International Food Industry Park

Development Co. Ltd. to bear payment responsibility for the aforementioned construction fee of 4.0973 million yuan and interest

within the scope of its outstanding payment for the construction fee. The total amount for the above fees is currently 4.5351 million

162深圳市深粮控股股份有限公司2024年半年度报告全文

yuan; 5) Demand for the defendant to bear all litigation costs.The Dongguan First People's Court held three pre-trial conferences on January 9 May 9 and June 7 2024. The plaintiff Peng

Miaosheng submitted an application for appraisal to the court. The case has not yet proceeded to formal trial.This case involves a contract dispute but Dongguan International Food Industrial Park Development Co. Ltd. (hereinafter

"Dongguan Food") has no contractual relationship with the plaintiff Peng Miaosheng. Moreover as the case is still under trial our

company believes that the court is unlikely to hold Dongguan Food liable. Therefore no provision for contingent liability has been

recognized for this lawsuit.As of now our company is unable to determine the financial impact of potential liabilities and estimated liabilities for this

pending lawsuit have not been recognized.* Enforcement objection case between Shanghai Baoyan Catering Co. Ltd. Hangzhou Ju Fang Yong Holding Co. Ltd and

Shenzhen Shenshenbao Investment Co. Ltd.In the franchise contract dispute between Shanghai Baoyan Catering Co. Ltd. ("Baoyan Company") and Hangzhou Fuhaitang

Catering Management Chain Co. Ltd. ("Fuhaitang Catering") the Hangzhou Intermediate People's Court issued final judgment

No. (2022) Zhe 01 Min Zhong 5242. Under the judgment Fuhaitang Catering is required to return 960000 yuan in agency

cooperation fees and deposits to Baoyan Catering within one month of the judgment's effective date. If Fuhaitang Catering fails to

make the payment within the specified period it must pay double the interest on the overdue amount in accordance with Article

260 of the Civil Procedure Law of the People's Republic of China.

After the judgment took effect Baoyan Catering applied for enforcement with the Binjiang District People's Court of Hangzhou

under enforcement case number (2023) Zhe 0108 Zhi 534. However since the judgment debtor Hangzhou Fuhaitang Catering

had no assets available for enforcement the court terminated the enforcement procedure. Baoyan Catering then applied to add the

current sole shareholder of Fuhaitang Catering Shenzhen Shenshenbao Investment Co. Ltd. and the original sole shareholder at

the time of its founding Hangzhou Ju Fang Yong Holdings Co. Ltd. as judgment debtors. Baoyan Catering also raised the

following objections to the enforcement: 1) Hangzhou Ju Fang Yong Holdings Co. Ltd. should be held liable within the scope of

the 850000 yuan capital withdrawal; 2) Shenzhen Shenshenbao Investment Co. Ltd. should bear joint liability for the debts of

Fuhaitang Catering

On April 23 2024 the Binjiang District People's Court of Hangzhou issued Enforcement Ruling No. (2024) Zhe 0108 Zhiyi 33

finding that the existing evidence was insufficient to prove that Hangzhou Ju Fang Yong Holdings Co. Ltd. engaged in capital

withdrawal. As a result the court rejected Baoyan Catering’s application to add Shenzhen Shenshenbao Investment Co. Ltd. and

Hangzhou Ju Fang Yong Holdings Co. Ltd. as judgment debtors in enforcement case No. (2023) Zhe 0108 Zhi 534 and dismissed

the objection of Baoyan Catering.On April 25 2024 the plaintiff Shanghai Baoyan Catering Co. Ltd. filed a lawsuit with the Binjiang District People's Court of

Hangzhou Zhejiang Province against Hangzhou Ju Fang Yong Holdings Co. Ltd. (Defendant 1) and Shenzhen Shenshenbao

Investment Co. Ltd. (Defendant 2) requesting: 1) A judgment holding Defendant 1 jointly liable to the plaintiff for the third

party's debts as determined in the Hangzhou Intermediate People's Court Civil Judgment No. (2022) Zhe 01 Min Zhong 5242

(returning 960000 yuan in agency cooperation fees and deposits and paying 83700 yuan in doubled interest for delayed

performance) within the scope of the 850000 yuan capital withdrawal; 2) A judgment holding Defendant 2 jointly liable to the

plaintiff for the third party's debts as specified in the same judgment; 3) That all litigation costs be borne by both defendants.Fuhaitang Catering Management Chain Co. Ltd. was named as a third party in the case.

163深圳市深粮控股股份有限公司2024年半年度报告全文

The case was heard on May 30 2024 but no judgment has been issued yet. Therefore no provision for contingent liability has

been recognized for this pending litigation.

(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

Item Content Impact on financial status and operation results Reasons of fails to estimate the impact

2.Profit distribution

3. Sales return

4. Other events after balance sheet date

XVIII. Other important events

1. Previous accounting errors correction

(1) Retrospective restatement

In RMB

Content of accounting error correction Procedures Items impact during vary comparative period Accumulated impact

(2)Prospective application

Content of accounting error correction Approval procedure Reasons for adopting the prospective applicable method

164深圳市深粮控股股份有限公司2024年半年度报告全文

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

(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) Account receivable classified by category

In RMB

Aging Ending book balance Beginning book balance

Within 1 year(inclusive) 109789556.55 65714145.99

Over 3 years 37305.68 37305.68

165深圳市深粮控股股份有限公司2024年半年度报告全文

Over 5 years 37305.68 37305.68

Total 109826862.23 65751451.67

(2)Accrued bad debt provision

In RMB

Ending balance Beginning balance

Bad debt Bad debt

Categor Book value Book value

provision provision

y Book value Book value

Accrua Accrua

Amount Ratio Amount Amount Ratio Amount

l ratio l ratio

Account

receivab

le with

bad debt

provisio 28453. 100.00 28453. 100.00

n 28453.08 0.03% 0.00 28453.08 0.04% 0.0008 % 08 %

accrued

on

single

basis

Includin

g:

Account

receivab

le with

bad debt

provisio 10979840 99.97 8442.6 10978996 65722998. 99.96 8442.6 65714555.n 0.01% 0.01%9.15 % 5 6.50 59 % 5 94

accrued

on

portfoli

o

Includin

g:

Portfoli

o of

sales 8442.6 8442.6244330.60 0.22% 3.46% 235887.95 144909.60 0.22% 5.83% 136466.95

receivab 5 5

le

Object-

specific 10955407 99.75 10955407 65578088. 99.74 65578088.portfoli 0.00 0.00% 0.00%8.55 % 8.55 99 % 99

o

Total 10982686 100.00 36895. 10978996 65751451. 100.00 36895. 65714555.0.03% 0.06%

2.23%736.5067%7394

Bad debt provision accrued on single item:

In RMB

Beginning balance Ending balance

Name Bad debt Bad debt

Book balance Book balance Accrual ratio Accrual reason

provision provision

Bad debt

Extreme low

provision

28453.08 28453.08 28453.08 28453.08 100.00% ability to

accrued on

recover

single item:

Total 28453.08 28453.08 28453.08 28453.08

Bad debt provision accrued on portfolio:

In RMB

166深圳市深粮控股股份有限公司2024年半年度报告全文

Name Ending balance

Book balance Bad debt provision Accrual ratio

Portfolio of sales receivable 244330.60 8442.65 3.45%

Object-specific portfolio 109554078.55

Total 109798409.15 8442.65

Explanation on the basis to determine such portfolio:

If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses:

□Applicable□Not applicable

(3)Bad debt provision accrued collected or reversal

Bad debt provision accrued in the period:

In RMB

Category Beginning

Amount changed in the period

balance Ending balanceAccrued Collected orreversal Written-off Other

Other provision on

single item: 28453.08 28453.08

Bad debt provision of

account receivable 8442.65 8442.65

Total 36895.73 36895.73

Important bad debt provision 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 debt

provision

(4) Account receivable actually charged off in the period

Unit: RMB

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

balance of Ratio in total ending Ending balance of bad debt

Ending balance Ending balance

Enterprise of account account balance of account provision for accountof contract

receivable receivable receivables and contract receivable and impairmentassets

and contract assets reserve of contract assets

assets

167深圳市深粮控股股份有限公司2024年半年度报告全文

2.Other account receivable

In RMB

Item Ending balance Beginning balance

Other account receivable 1631458762.44 1624337855.63

Total 1631458762.44 1624337855.63

(1) Interest receivable

1) By category

In RMB

Item Ending balance Beginning balance

2) Important overdue interest

Whether impairment

Borrower Ending balance Overdue time Overdue causes occurs and its

judgment basis

Other explanation:

3)Accrued bad debt provision

□Applicable□Not applicable

4)Bad debt provision accrued collected or reversal

In RMB

Beginning Amount changed in the periodCategory balance Accrued Collected or

Ending balance

reversal Charged off Other

Important bad debt provision 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 debt

provision

Other explanation:

(5) Interest receivable actually 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:

168深圳市深粮控股股份有限公司2024年半年度报告全文

Other explanation:

(2)Dividend receivable

1) Category

In RMB

Item (or the invested entity) Ending balance Beginning balance

2)Important dividend receivable with aging over one year

In RMB

Item (or the invested Ending Account Reasons for not Whether impairment occurs and its judgment

entity) balance age collection basis

3)Accrued bad debt provision

□Applicable□Not applicable

4)Bad debt provision accrued collected or reversal

In RMB

Amount changed in the period

Category Beginning balance Ending balance

Accrued Collected orreversal Charged off Other

Important bad debt provision 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 debt

provision

Other explanation:

(5) Dividend receivable actually charged off in the period

Unit: RMB

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

169深圳市深粮控股股份有限公司2024年半年度报告全文

Nature Ending book balance Beginning book balance

Margin and deposit 1008451.22 1000000.00

Other intercourse funds 1658280046.26 1651168026.40

Total 1659288497.48 1652168026.40

2)By aging

In RMB

Aging Ending book balance Beginning book balance

Within 1 year(inclusive) 1628484297.01 314162982.64

1-2 year 5928622.71 1312629466.00

Over 3 years 24875577.76 25375577.76

Over 5 years 24875577.76 25375577.76

Total 1659288497.48 1652168026.40

3)Accrued bad debt provision

In RMB

Ending balance Beginning balance

Book balance Bad debt provision Book balance Bad debt provision

Category Book Book

Accrual Accrual

Amount Ratio Amount value Amount Ratio Amount value

ratio ratio

Including:

Including:

Bad debt provision is made on the basis of the general model of expected credit losses:

In RMB

Phase I Phase II Phase III

Bad debt provision 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 213626.85 27616266.89 27829735.04

Balance on Jan. 1 2024

in the period

Balance on June 30

213626.8527616266.8927829735.04

2024

Classification basis and bad debt provision ratio for each stage

Changes in book balance with significant changes in the current period's provision for losses

□Applicable□Not applicable

4)Bad debt provision accrued collected or reversal

Bad debt provision accrued in the period:

In RMB

Amount changed in the period

Category Beginning balance Ending balance

Accrued Collected orreversal Charged off Other

170深圳市深粮控股股份有限公司2024年半年度报告全文

Bad debt provision

213468.15213468.15

accrued on single basis

Bad debt provision

accrued on portfolio 27616266.89 27616266.89

basis

Total 27829735.04 27829735.04

Important bad debt provision collected or reversal in current period:

In RMB

Basis and rationality to

define the accrued ratio

Enterprise Collected or reversal Reason for reversal Manner of reversal

of original bad debt

provision

5) Other account receivable actually 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 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 (%) provision

7)Those booked into other account receivables due to centralized fund management

In RMB

Other explanation:

3.Long-term equity investment

In RMB

Ending balance Beginning balance

Item

Book balance Impairmentprovision Book value Book balance

Impairment

provision Book value

Investment in

subsidiary 4032344425.09 5500000.00 4026844425.09 4032344425.09 5500000.00 4026844425.09

Investment in

joint venture

and associated 2927628.53 2927628.53 0.00 2927628.53 2927628.53 0.00

enterprise

Total 4035272053.62 8427628.53 4026844425.09 4035272053.62 8427628.53 4026844425.09

171深圳市深粮控股股份有限公司2024年半年度报告全文

(1)Investment in subsidiary

In RMB

Current changes (+ -)

Beginning Accrual

Invested Beginning balance of Addition Ending

Ending

balance(book balance ofentity impairmen al Capital

of balance(book

value) impairmeninvestme reduction impairme Other value)

t provision t provisionnt ntprovision

Shenzhen

Cereals 3291415036. 3291415036.Group Co. 82 82

Ltd

Dongguan

Shenliang 321680000.0 321680000.0

Logistics 0 0

Co. Ltd.Huizhou

Shenbao

60000000.0060000000.00

Technology

Co. Ltd.Shenzhen

Shenbao

223228545.9223228545.9

Huacheng

11

Technology

Co. Ltd.Shenzhen

Shenshenba

o 50000000.00 50000000.00

Investment

Co. Ltd

Shenzhen

Shenbao -

5500000.

Industrial & 0.00 0.00 550000 0.00

00

Trading 0.00

Co. Ltd

Shenzhen

Shenliang 550000 5500000.

80520842.360.0080520842.36

Food Co. 0.00 00

Ltd.

4026844425.5500000.4026844425.5500000.

Total

09000900

(2)Investment in associated enterprises and joint venture

In RMB

Beginni Current changes (+/ -)

ng Cash Ending

Beginni Investbalance balance

Investme ng Additi Capit ment

Other Oth divide Accrua Ending

of gains comprehe er nd or l of

of

nt balance( balance(

impairm onal al recogn nsive equi profit impair Otcompany book book

impairm

invest reduc ized income ty annou ment her value)

ent

value) ent ment tion under adjustme cha nced provisi

provisio

provisio n

n equity

nt nge to on

issued

I. Joint venture

II. Associated enterprise

172深圳市深粮控股股份有限公司2024年半年度报告全文

Changzh

ou

Sanjing 0.00

Grease

Co. Ltd

Shenzhe

n

Shenbao 28700 28700

0.000.00

(Xinmin) 00.00 00.00

Foods

Co. Ltd

Shenzhe

n

Shenbao

(Liaoyua 57628. 57628.

0.000.00

n) 53 53

Industrial

Compan

y

2927629276

Subtotal

28.5328.53

2927629276

Total 0.00 0.00

28.5328.53

The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value

□Applicable ?Not applicable

The recoverable amount is determined based on 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 income and operating cost

In RMB

Current period Last period

Item

Income Cost Income Cost

Main business 81572805.12 235795.14 80328054.38 235795.14

Other business 137609.18 0.00 137609.18 0.00

Total 81710414.30 235795.14 80465663.56 235795.14

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

173深圳市深粮控股股份有限公司2024年半年度报告全文

by business

area

Including:

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:

Income corresponding to performing obligations that have been signed at the end of this reporting period but are not yet fulfilled

or finished amounted to 0.00 yuan among them 0.00 yuan of income 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

Income from long-term equity investment measured at cost method 9380685.39

Investment income from disposal of long-term equity investment 1567130.20

Investment income during the holding period of tradable financial assets 3729953.65 975629.57

Total 14677769.24 975629.57

174深圳市深粮控股股份有限公司2024年半年度报告全文

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 6376281.79

Governmental subsidy 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 5536754.37

and having a continuous impact on the company’s gains/losses)

Gains/losses of assets delegation on others’ investment or management 3933789.27

Reversal of provision of impairment of accounts receivable which are treated with separate depreciation test 435.73

Other non-operating income and expenditure except for the aforementioned items -158397.83

Less: impact on income tax 3552532.61

Impact on minority shareholders’ equity (after-tax) -2148.29 --

Total 12138479.01

Details of other gains/losses items that meets the definition of non-recurring gains/losses:

□ Applicable □ Not applicable

The Company has no other gains/losses items that meet the definition of non-recurring gains/losses.Explain the items defined as non-recurring gains/losses according to the lists of non-recurring gains/losses in Q&A Announcement

No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---non-recurring gains/losses

□ Applicable □ Not applicable

2. ROE and earnings per share

Weighted Earnings per shareProfits during reporting period average ROE Basic earnings per Diluted earnings pershare (RMB/Share) share (RMB/Share)

Net profits attributable to common stock stockholders of the

Company 2.64% 0.1120 0.1120

Net profits attributable to common stock stockholders of the

Company after deducting non-recurring gains and losses 2.39% 0.1014 0.1014

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

Net profit Net asset

Current amount Last amount Ending balance Beginning balance

Under Chinese GAAP 129030850.78 168149768.31 4723330417.23 4824452103.84

Item and amount adjusted under IAS

175深圳市深粮控股股份有限公司2024年半年度报告全文

Adjustment of other

payable stock market 1067000.00 1067000.00

adjustment funds

Under IAS 129030850.78 168149768.31 4724397417.23 4825519103.84

(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

176