Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.Shandong Zhonglu Oceanic Fisheries Co. Ltd.Annual Report of 2025

【April 24 2026】

1Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Annual Report of 2025

Section I Important Information Contents and Definitions

The Company’s Board of Directors directors and officers ensure that the

content of this annual report is true accurate and complete without any false

record misleading statement or significant omission and bear joint and

several legal liability.Wang Huan the principal of the Company Fu Chuanhai the person in

charge of accounting and Lei Lixin the person in charge of the accounting

body (accounting supervisor) declare that the financial report in this annual

report is true accurate and complete.All directors attended the Board meeting at which this report was

considered.The Company describes potential risks in its operations and

countermeasures in “XI. Prospect of the Company’s Future Development” in

Section III “The Management’s Discussion and Analysis.” Investors are

reminded to pay attention to the relevant content.This report is prepared in Chinese and English. Where the Chinese and

English texts are interpreted in different ways the Chinese text shall prevail.The Company plans not to distribute cash dividends not to distribute

bonus shares and not to convert reserves into share capital.As of the end of the reporting period the parent company had accumulated

2Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

losses.According to the audit conducted by Shanghai Certified Public

Accountants (Special General Partnership) the parent company’s net profit

for the 2025 fiscal year was RMB 16136778.43 and its retained earnings were

RMB -2898701.11. In accordance with the provisions of the Articles of

Association and the Shenzhen Stock Exchange Listing Rules (Section 5.3.2:“Profit distribution by a listed company shall be based on the distributableprofits in the most recent audited parent company financial statements taking

into reasonable consideration the current period’s profit situation and shall

determine the specific profit distribution ratio in accordance with the principle

of taking the lower of the distributable profits in the consolidated financial

statements and the parent company financial statements to avoid over-

distribution) the parent company’s distributable profits as of December 31

2025 were negative and the Company’s 2025 profit distribution proposal is as

follows: no profit distribution will be made nor will capital reserves be

converted into share capital.

3Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Contents

Section I Important Information Content and Defini... 2

Section II Company Introduction and Key Financial ... 6

Section III The Management's Discussion and Analys.. 13

Section IV Corporate Governance Environmental and .. 31

Section V Important Matters .........................46

Section VI Changes in Shares and Information on Sh.. 57

Section VII Bonds .................................. 63

Section VIII Financial Report ...................... 64

4Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

List of Documents for Reference

(I) Financial statements with the signatures of the principal of the Company the person in charge of accounting and the

person in charge of the accounting body and affixed with the Company’s seal.(II) The original of the audit report affixed with the accounting firm’s seal and the certified public accountant’s signature and

seal.(III) The originals of all corporate documents and the manuscripts of all announcements disclosed during the Reporting

Period.

5Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Definitions

Term Refers to Content

The Company Company or Zhonglu Shandong Zhonglu Oceanic Fisheries

Refers to

Oceanic Co. Ltd.Shandong State-owned Assets

Shandong Guotou Refers to

Investment Holdings Co. Ltd.CSRC Refers to China Securities Regulatory Commission

The annual report of 2025 prepared by

This report Refers to

the Company

Shandong Zhonglu Haiyan Oceanic

Zhonglu Haiyan Refers to

Fisheries Co. Ltd.Shandong Zhonglu Oceanic (Yantai)

Zhonglu Food Refers to

Food Co. Ltd.

6Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Section II Company Introduction and Key Financial Indicators

I. Company’s Information

Short stock name Zhonglu B Stock code 200992

Securities exchange where the

Shenzhen Stock Exchange

stocks are listed

Chinese name 山东省中鲁远洋渔业股份有限公司

Short Chinese name 中鲁远洋

Foreign name (if any) Shandong Zhonglu Oceanic Fisheries Company Limited

Acronym of the foreign name

ZLYY

(if any)

Legal representative Wang Huan

Registered address Unit 2501 Building 1 31 Xianxialing Road Laoshan District Qingdao Shandong

Postal code of the registered

266061

address

57 Lishan Road Jinan Shandong→43 Heping Road Jinan Shandon→29 Miaoling Road

Historical changes of the

Laoshan District Qingdao Shandong→Unit 2501 Building 1 31 Xianxialing Road Laoshan

Company’s registered address

District Qingdao Shandong

25th Floor Building 1 Guoxin Financial Center No. 31 Xianxialing Road Laoshan District

Office address

Qingdao Shandong

Postal code of the office

266061

address

Website http://www.zofco.cn/

Email zl000992@163.com

II. Contact Person and Contact Information

Board Secretary Securities Affairs Representative

Name Yu Xiaoqiang Tang Yuntao

25th Floor Building 1 Guoxin Financial 25th Floor Building 1 Guoxin Financial

Address Center No. 31 Xianxialing Road Center No. 31 Xianxialing Road

Laoshan District Qingdao Shandong Laoshan District Qingdao Shandong

Tel 0532-55717968 0532-55715968

Fax 0532-55719258 0532-55719258

Email zl000992@163.com zl000992@163.com

III. Information Disclosure and Place of Report Storage

Stock exchange website where the Company discloses the

China Securities Journal

annual report

Media name and website where the Company discloses the

CNINFO http://www.cninfo.com.cn

annual report

Place of annual report storage Company’s Board Office

7Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

IV. Registration Changes

Unified Social Credit Code 91370000863043102Y

(1) On July 14 2000 the Company’s business scope changedfrom “high sea and long range fishing; the culture processingand sales of aquatic products; the import and export of

commodities within the approved scope; the manufacture and

sales of machine-made ice; the manufacture installation andrepair of refrigeration equipment” to “high sea and long rangefishing; the culture processing and sales of aquatic products;

the import and export of commodities within the approved

scope; the manufacture and sales of machine-made ice; the

manufacture installation and repair of refrigeration equipment;the leasing of refrigeration storage.”

(2) On November 30 2000 the Company’s business scopechanged from “high sea and long range fishing; the cultureprocessing and sales of aquatic products; the import and export

of commodities within the approved scope; the manufacture

and sales of machine-made ice; the manufacture installation

and repair of refrigeration equipment; the leasing ofrefrigeration storage” to “high sea and long range fishing; theculture processing and sales of aquatic products; the import

and export of commodities within the approved scope; the

manufacture and sales of machine-made ice; the manufacture

installation and repair of refrigeration equipment; refrigerationand cold storage.”

(3) On May 28 2002 the Company’s business scope changedfrom “high sea and long range fishing; the culture processingand sales of aquatic products; the import and export of

Changes in the Company’s main businesses since listing (if commodities within the approved scope; the manufacture and

any) sales of machine-made ice; the manufacture installation and

repair of refrigeration equipment; refrigeration and coldstorage” to “high sea and long range fishing; the cultureprocessing and sales of aquatic products; the import and export

of commodities within the approved scope; the manufacture

and sales of machine-made ice; the manufacture installation

and repair of refrigeration equipment; refrigeration and coldstorage; loading unloading and handling services.”

(4) On June 6 2006 the Company’s business scope changedfrom “high sea and long range fishing; the culture processingand sales of aquatic products; the import and export of

commodities within the approved scope; the manufacture and

sales of machine-made ice; the manufacture installation and

repair of refrigeration equipment; refrigeration and coldstorage; loading unloading and handling services” to “high seaand long range fishing; the processing and sales of aquatic

products; the import and export of commodities within the

approved scope; the manufacture and sales of machine-made

ice; the manufacture installation and repair of refrigeration

equipment; refrigeration and cold storage; loading unloadingand handling services.”

(5) On May 16 2007 the Company’s business scope changedfrom “high sea and long range fishing; the processing and salesof aquatic products; the import and export of commodities

within the approved scope; the manufacture and sales of

machine-made ice; the manufacture installation and repair of

refrigeration equipment; refrigeration and cold storage;

8Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.loading unloading and handling services” to “high sea andlong range fishing; the processing and sales of aquatic

products; the import and export of commodities within the

approved scope; the manufacture and sales of machine-made

ice; the manufacture installation and repair of refrigeration

equipment; refrigeration and cold storage; loading unloadingand handling services; property leasing.”

In December 2006 88000000 shares of the Company held by

Shandong Aquaculture Enterprise Group as a state-owned legal

person were transferred to Shandong Guotou through judicial

auction procedures and a court ruling. On June 21 2007

Shandong Guotou received the Confirmation of Transferred

Ownership Registration from China Securities Depository and

Clearing Co. Ltd. Shenzhen Branch which stated that the

transfer procedures had been completed. By then Shandong

Guotou held 88000000 shares of the Company as a state-

Changes in the controlling shareholder (if any) owned legal person accounting for 33.07% of the Company’s

total share capital. On July 20 2018 Shandong Guotou signed

the Agreement for the Share Transfer of Shandong Zhonglu

Oceanic Fisheries Co. Ltd. with Lucion Group to receive

37731320 shares held by Lucion Group as a state-owned legal

person accounting for 14.18% of the Company’s total share

capital. On November 16 2018 Shandong Guotou received the

Confirmation of Transferred Securities Ownership

Registration which stated that the transfer procedures had been

completed.V. Other Relevant Information

Accounting firm engaged by the Company

Shanghai Certified Public Accountants (special general

Name of accounting firm

partnership)

Office address Floor 25 755 Weihai Road Jing’an District Shanghai

Names of signatory accountants Xu Mao Wang Zhenbing

Sponsor institution engaged by the Company to perform continuous supervision during the Reporting Period

□Applicable□ Not applicable

Financial adviser engaged by the Company to perform continuous supervision during the Reporting Period

□Applicable□ Not applicable

VI. Key Accounting Data and Financial Indicators

Whether the Company is required to make retroactive adjustments or restate the accounting data for previous years

□Yes□ No

2025 2024 Increase/Decrease 2023

Operating revenue

1486692709.661384660265.967.37%1145252422.09

(RMB)

Net profits attributable

to the Company’s 33472952.45 34540564.55 -3.09% 39599325.61

shareholders (RMB)

Net profits attributable 30436377.84 24549609.71 23.98% 34139489.17

to the Company’s

9Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

shareholders after

deducting nonrecurring

items (RMB)

Net cash flows from

operating activities 111095906.17 117920429.99 -5.79% 81536757.82

(RMB)

Base earnings per share

0.12580.1298-3.08%0.1488

(RMB/share)

Diluted earnings per

0.12580.1298-3.08%0.1488

share (RMB/share)

Weighted average

3.11%3.29%-0.18%3.93%

return on equity

At the end of 2025 At the end of 2024 Increase/Decrease At the end of 2023

Total assets (RMB) 2168213094.94 2106970515.76 2.91% 2048135067.78

Net assets attributable

to the Company’s 1094666215.62 1067190746.65 2.57% 1029594896.14

shareholders (RMB)

The lower values of the Company’s net profits before and after deducting nonrecurring items for the last three accounting years are

all negative and the audit report for the last one year shows that there are uncertainties in the Company’s sustainable operation

ability.□Yes□ No

During the reporting period the Company’s audited total profit net profit and net profit after deducting non-recurring gains and

losses whichever is the lowest will be negative.□Yes□ No

VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards

1. Differences in net profits and net assets in the financial report disclosed both according to international

accounting standards and Chinese accounting standards

□Applicable□ Not applicable

For the Company there was no difference in net profits and net assets in the financial report disclosed both according to

international accounting standards and Chinese accounting standards during the Reporting Period.

2. Differences in net profits and net assets in the financial report disclosed both according to overseas

accounting standards and Chinese accounting standards

□Applicable□ Not applicable

For the Company there was no difference in net profits and net assets in the financial report disclosed both according to overseas

accounting standards and Chinese accounting standards during the Reporting Period.VIII. Key Financial Indicators by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 269861836.68 407518240.81 394194805.76 415117826.41

Net profits attributable -274714.35 -13062331.91 15838020.31 30971978.40

to the Company’s

10Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

shareholders

Net profits attributable

to the Company’s

shareholders after -1251867.00 -14088288.55 14332374.84 31444158.55

deducting nonrecurring

items

Net cash flows from

40059737.2342545526.79-14837981.7043328623.85

operating activities

Whether the above financial indicators or the sum of them are significantly different from the quarterly reports or semi-annual

reports disclosed by the Company

□Yes□ No

IX. Nonrecurring Items and Amounts

□ Applicable □Not applicable

Unit: RMB

Item Amount for 205 Amount for 2024 Amount for 2023 Remark

Gains or losses from

the disposal of non-

current assets

(including the write- -2189178.62 -54820.53 -84285.00

offs for which the asset

impairment provision

was accrued)

Government subsidies

recognized in the profit

or loss (excluding

government subsidies

that are closely

associated with the

Company’s ordinary

course of business

3612270.619882970.643914296.75

comply with national

policies are enjoyed

according to

established standards

and have continuous

effects on the

Company’s profit or

loss)

Gains or losses from

fair value change

arising from the

financial assets and

financial liabilities held

by non-financial

businesses and gains or -135804.65 -79486.61

losses from the

disposal of financial

assets and financial

liabilities except for

effective hedging

business related to the

11Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Company’s ordinary

course of business

Trustee income from

1698113.191698113.201698113.20

trusteeship

Other non-operating

incomes and

210442.94-2409.171583319.90

expenditures than the

above

Less: amount of the

243495.76262281.72286560.82

effect of the income tax

Amount of the effect of

the minority interest 51577.75 1134812.93 1285560.98

(after tax)

Total 3036574.61 9990954.84 5459836.44 --

Details of other profit/loss items that conform to the definition of nonrecurring items:

□Applicable□ Not applicable

For the Company there was no detail of other profit/loss items that conform to the definition of nonrecurring items.Explanation of the situation where the nonrecurring items listed in the Explanatory Announcement No. 1 on Information

Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items are defined as recurring items

□Applicable□ Not applicable

The Company had no situation where it defined the nonrecurring items listed in the Explanatory Announcement No. 1 on

Information Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items as recurring items.

12Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Section III The Management’s Discussion and Analysis

I. Company’s Main Businesses during the Reporting Period

During the Reporting Period the Company’s main businesses included long range fishing maritime transportation and cold

storage processing and trading. These businesses rely on and promote each other forming a complete industrial chain.

1. Long range fishing

During the Reporting Period the Company had 27 distant-water fishing boats including 14 large ultra-low temperature tuna

longliners nine (sets of) large tuna seiners two medium-sized trawlers and two squid fishing boats which mainly operated in the

Indian Ocean the Atlantic and the Pacific. Guided by the “Stabilize Expand and Upgrade” business strategy the fleet has

consolidated its operational advantages in the Atlantic expanded its longline fishing operations and increased its purse seine catch

in the Central and Western Pacific. The ultra-low-temperature longline fishing program has shifted operations from low-latitude

waters to high-latitude waters in the Southern Hemisphere thereby expanding the operational scope and diversifying the range of

fish species caught.

2. Maritime transportation

During the reporting period the Company’s eight large ocean-going vessels demonstrated excellent performance strict

management and standardized service. These vessels are suitable for the deep-sea frozen and refrigerated transport of seafood

meat poultry vegetables and fruits with their service areas covering the central and western Pacific the Indian Ocean the

Atlantic Ocean and select waters and ports in North and South America. The vessels logged a cumulative safe voyage of over

160000 nautical miles for the year with a voyage rate exceeding 98% achieving a “double guarantee” of voyage rate and

operational days.

3. Cold storage processing and trade

During the reporting period the Company successfully passed two leading international food safety audits—BRC (Global Food

Safety Standard) and IFS (International Food Standard)—joining the ranks of the few food processing companies worldwide to

obtain IFS certification. This achievement has laid a solid foundation for exporting products to the EU and further expanding into

international markets. We established a “customer-sales-R&D” tripartite product co-creation mechanism to drive R&D directly

into the market. International trade demonstrated a positive trend of “rising volume and prices” with total annual exports

exceeding 17000 tons a year-over-year increase of over 13%; total export value reached $79 million a year-over-year increase ofover 30%. New clients were acquired in multiple countries and regions. Online sales explored a “brand + private domain + sciencepopularization” model collaborating with Ocean University and the Shandong Provincial Offshore Fisheries Association to

organize a series of themed live-streaming events. These initiatives received a positive market response with annual sales from

private domain live-streaming growing by over 31% year-over-year.Market position: the vice-presidential unit of the China Overseas Fisheries Association; the presidential unit of the Qingdao

Overseas Fisheries Association; leading enterprise in Qingdao’s Agricultural Industry.II. Overview of the Company’s Industry during the Reporting Period

Overview of the Company’s industry: In recent years China has strictly controlled the scale of distant-water fisheries maintaining

the targets of keeping the number of distant-water fishing vessels under 3000 and total distant-water fishery output at around 2.3

million metric tons. The Company’s fishing vessels operated in the high seas of the Pacific Indian and Atlantic oceans and the

seas around Antarctica as well as the seas governed by relevant partner countries. In 2024 China’s distant-water fisheries output

reached 2.1891 million metric tons down 5.74% year-on-year and accounting for 2.98% of the total production of aquatic

products. Overseas fishing is China’s strategic industry and plays an important role in building a "maritime community with a

13Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

shared future" and "a strong marine country" and implementing the "Belt and Road" initiative. It has great significance for

increasing the supply of high-quality domestic and foreign aquatic products ensuring food safety and promoting bilateral and

multilateral cooperation in the fishery. China’s overseas fishing started in 1985 and China has become one of the world’s major

overseas fishing countries over more than four decades of development. Climbing to the world’s top in size China’s overseas

fishing industry is characterized by a gradually improving industrial structure substantially improved equipment much stronger

scientific and technological support and an ever-improving management system. It is developing towards "transformation

upgrading and standardized management."

However the industry still faces a series of challenges: overall technological support and comprehensive resource development

capabilities remain relatively weak and there is still a gap compared to international advanced standards; rising domestic labor

costs and a shortage of professional crew members—particularly those in key positions—are expected to constrain the industry’s

development for the long term. Therefore enterprises urgently need to increase investment in technology accelerate the pace of

transformation and upgrading and focus on enhancing core competitiveness to actively respond to the rapidly changing industry

environment.Currently in addition to rapid growth in major cities such as Beijing Shanghai and Guangzhou the domestic tuna market is also

seeing the consumption potential of the mainland market being unlocked forming a trend toward large-scale consumption. It is

foreseeable that as people’s living standards continue to rise—shifting from simply having enough to eat and eating well to

prioritizing nutrition and health—the domestic tuna consumption market is bound to grow rapidly in the future.The National 15th Five-Year Development Plan explicitly states the need to “strengthen optimize and expand the marine industryand orderly advance the development and utilization of marine energy resources.” The development of the marine economy will

resolutely implement the new development philosophy using scientific and technological innovation as the primary means to

move toward high-end cluster-based international information-driven and intelligent marine industries. This also provides a

significant boost to the sustainable development of the domestic tuna market. For Zhonglu Ocean Shipping a company that has

consistently focused on the marine economy and adhered to a sustainable development strategy the support and empowerment

provided by these macro-level policies will undoubtedly make its future development even more resolute and robust.Note: The above data are sourced from the white paper The Development of China’s Offshore Fisheries and the 2024 National

Fisheries Economic Statistical Bulletin.III. Analysis of Core Competitiveness

The Company is a comprehensive and export-oriented company engaged in overseas fishing that was incorporated in July 1999

with the approval of the Shandong Provincial People’s Government. It has a well-established industrial chain and is a leading

enterprise in Qingdao’s agricultural industry. As a comprehensive listed fishing company the Company’s core competitiveness

lies in the following aspects: (1) Through more than 20 years of development the Company has grown into a comprehensive

fishing enterprise that is engaged in a combination of businesses including overseas fishing deep processing trading cold storage

logistics marine transportation and entrepreneurship and investment in the modern marine industry. The Company’s main

businesses involve key links in the industrial chain. The businesses of the Company’s operating entities are highly associated

which meets the conditions for holistically collaborative operations. This provides a guarantee for the Company to reform its

operations and strengthen and extend the industrial chain. (2) As one of the earliest companies engaged in overseas fishing in

China the Company started production and operations early from a high ground with competent human resources and assets.Through years of dedicated operations the Company has gathered a pool of professionals specializing in relevant fields of the

overseas fishing industry. (3) The Company’s overseas fishing industry is part of China’s “Belt and Road” initiative and building a

14Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

strong marine country and Shandong’s strategy of building a strong marine province. There are development opportunities from

the adjustment of the industrial depth. (4) By continuously cultivating the international sea transportation market the Company

has established long-term stable cooperation with customers and built a service brand with distinctive “Zhonglu characteristics”

and enjoyed a good reputation on the Asia-Pacific marine cold storage transport market. (5)The Company has the earliest ultra-low

temperature refrigeration storage and tuna processing base in China which has strengthened its competitive edge in tuna

processing and trading. (6) The Company carries out long range fishing in the Atlantic Indian Oceans and Western-central Pacific

reaches most of the world’s major ports with its cold storage transportation and covers many countries with import and export.With the implementation of the “Belt and Road” initiative the countries along the “Belt and Road” will have stronger trust in each

other and establish closer cooperation. In addition the Company and the governments at all levels have rolled out a suite of

development plans and industrial preference policies. All these have brought new opportunities for the development of the

Company.The Company will leverage the aforementioned advantages to pioneer innovate forge ahead and proactively engage

itself in the conversion of old and new growth drivers. It will accelerate transformation and upgrading vigorously extend the

industrial chain and further improve its influence and competitiveness in domestic and even international markets.IV. Analysis of Main Businesses

1.Overview

Refer to “I. Company’s Main Businesses during the Reporting Period” in “Section III The Management’s Discussion andAnalysis.”

2.Revenue and cost

(1) Components of operating revenue

Unit: RMB

20252024

Year-on-year

Proportion in Proportion in

Amount Amount increase/decrease

operating revenue operating revenue

Total operating

1486692709.66100%1384660265.96100%7.37%

revenue

By industry

Long range fishing 736075102.47 49.51% 717387641.78 51.81% 2.60%

Cold storage

139342956.869.37%143194597.7210.34%-2.69%

transportation

Cold storage

processing and 729773217.01 49.09% 618325021.60 44.66% 18.02%

trading

Others 6936760.01 0.47% 7555948.66 0.55% -8.19%

Offset of internal

-125435326.69-8.44%-101802943.80-7.35%23.21%

transactions

By product

Long range fishing 736075102.47 49.51% 717387641.78 51.81% 2.60%

Cold storage

139342956.869.37%143194597.7210.34%-2.69%

transportation

Cold storage

processing and 729773217.01 49.09% 618325021.60 44.66% 18.02%

trading

Others 6936760.01 0.47% 7555948.66 0.55% -8.19%

15Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Offset of internal

-125435326.69-8.44%-101802943.80-7.35%23.21%

transactions

By region

China 926599878.54 62.33% 982749178.09 70.97% -5.71%

Foreign countries 685528157.81 46.11% 503714031.67 36.38% 36.09%

Offset of internal

-125435326.69-8.44%-101802943.80-7.35%23.21%

transactions

By sales model

Direct sales 1486692709.66 100.00% 1384660265.96 100.00% 7.37%

(2) Industries products regions sales models accounting for more than 10% of the Company’s operating revenue or

operating profits

□ Applicable □Not applicable

Unit: RMB

Year-on-year Year-on-year Year-on-year

Operating Gross profit increase/decrea increase/decrea increase/decrea

Operating costs

revenue margin se in operating se in operating se in gross

revenue costs profit margin

By industry

Long range

736075102.47693406658.795.80%2.60%1.38%1.14%

fishing

Cold storage

139342956.86105228797.3224.48%-2.69%1.49%-3.12%

transportation

Cold storage

processing and 729773217.01 682201281.19 6.52% 18.02% 17.33% 0.56%

trading

By product

Long range

736075102.47693406658.795.80%2.60%1.38%1.14%

fishing

Cold storage

139342956.86105228797.3224.48%-2.69%1.49%-3.12%

transportation

Cold storage

processing and 729773217.01 682201281.19 6.52% 18.02% 17.33% 0.56%

trading

By region

China 926599878.54 855610864.46 7.66% -5.71% -3.53% -2.09%

Foreign

685528157.81628900013.338.26%36.09%29.48%4.68%

countries

By sales model

1486692709.1358155036.

Direct sales 8.65% 7.37% 6.96% 0.35%

6638

In the case where the statistical basis of the Company’s main business data was adjusted during the Reporting Period the

Company’s adjusted main business data for the last one year on the statistical basis as at the end of the Reporting Period

□Applicable□ Not applicable

(3) Whether the Company’s revenue from the sales of physical goods exceeds its revenue from the provision of labor

services

□ Yes □No

Industry category Item Unit 2025 2024 Year-on-year

16Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

increase/decrease

Sales volume Ton 60645 59784 1.44%

Production Ton 59968 56817 5.55%

Long range fishing

Inventory Ton 10643 11320 -5.98%

Sales volume Ton 23250 20265 14.73%

Cold storage Production Ton 21545 21116 2.03%

processing and

trading Inventory Ton 5448 7153 -23.84%

Reasons for year-on-year changes by more than 30%

□Applicable□ Not applicable

(4) Performance of the Company’s significant sales contracts and significant purchase contracts as of the Reporting Period

□Applicable□ Not applicable

(5) Components of operating costs

Industry category

Unit: RMB

2025 2024 Year-on-year

Industry

Item

category Proportion in Proportion in

increase/decrea

Amount Amount

operating costs operating costs se

Long range

Raw materials 115327160.52 8.49% 117212598.26 9.23% -1.61%

fishing

Long range

Fuel power 191558891.21 14.10% 195190153.49 15.37% -1.86%

fishing

Cold storage

Staff salaries 43267885.30 3.19% 44289760.73 3.49% -2.31%

transportation

Cold storage

Direct raw

processing and 626550379.67 46.13% 526645225.63 41.47% 18.97%

materials

trading

Note

The direct raw material cost in the operating costs of cold storage processing and trading increased by 18.97% year-on-year

mainly due to the year-on-year growth in sales volume of cold storage processing and trading for the current period.

(6) Whether there was any change in the consolidated scope during the Reporting Period

□Yes□No

(7) Any significant changes or adjustments to the Company’s businesses products or services during the Reporting Period

□Applicable□ Not applicable

(8) Key customers and key suppliers

The Company’s key customers

17Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Total sales to the top five customers (RMB) 670539621.92

Proportion of the total sales to the top five customers in the

45.10%

total sales for the year

Proportion of the sales to the related parties of the total sales to

0.00%

the top five customers in the total sales for the year

The Company’s top five customers

Proportion in the total sales

No. Customer’s name Sales (RMB)

for the year

1 A 239079042.80 16.08%

2 B 198560445.87 13.36%

3 C 91688525.26 6.17%

4 D 75015408.27 5.05%

5 E 66196199.72 4.45%

Total -- 670539621.92 45.10%

Explanation of other situations related to the key customers

□Applicable□ Not applicable

Information of the Company’s key suppliers

Total purchases from the top five suppliers (RMB) 479935450.77

Proportion of the total purchases from the top five suppliers in

54.10%

the total purchases for the year

Proportion of the purchases from the related parties of the total

purchases from the top five suppliers in the total purchases for 0.00%

the year

The Company’s top five suppliers

Proportion in the total

No. Supplier’s name Amount of purchase (RMB)

purchase for the year

1 A 188449693.00 21.24%

2 B 107163334.03 12.08%

3 C 82008472.64 9.24%

4 D 68594167.50 7.73%

5 E 33719783.60 3.81%

Total -- 479935450.77 54.10%

Explanation of other situations related to the key suppliers

□Applicable□ Not applicable

During the reporting period revenue from the Company’s trading operations accounted for more than 10% of total operating

revenue.□Applicable□ Not applicable

3. Expenses

Unit: RMB

Year-on-year Explanation of

20252024

increase/decrease significant changes

Selling expenses 4291510.60 4225496.40 1.56%

18Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Management expenses 70322958.25 64063224.51 9.77%

Financial expenses 15407094.25 14213726.76 8.40%

R&D expenses 6428549.07 6267079.11 2.58%

4. R&D spending

□ Applicable □Not applicable

Expected impact on the

Name of key R&D

Purpose Progress Intended objective Company’s future

project

development

These materials

Improve fishing

Research and enhance fishing

Reduce fishing vessel efficiency and

Application of efficiency while being

operating costs and strengthen energy

Biodegradable capable of self- Completed

increase fishing conservation and

Materials in Tuna degradation thereby

efficiency. environmental

Purse Seine Fisheries contributing to the goal

protection.of a green ocean.Reduce the operating

Localization retrofit of costs of vessels and To reduce costs for It is expected to reduce

marine auxiliary fulfill the purpose of spare parts lubricating the operating costs and

Completed

engines generators and energy conservation oil and fuels and costs economic performance

power stations green and low-carbon for regular repairs. of vessels.development.The Company’s R&D personnel

2025 2024 Changes (%)

Number of R&D personnel

2022-9.09%

(person)

Proportion of R&D personnel 2.35% 2.63% -0.28%

Educational backgrounds of R&D personnel

Bachelor’s degree 9 12 -25.00%

Master’s degree 5 4 25.00%

Diploma 6 6

Age groups of R&D personnel

Under 30 years old 2 2

30 to 40 years old 6 5 20.00%

Above 40 years old 12 15 -20.00%

Information of the Company’s R&D spending

2025 2024 Changes (%)

R&D spending (RMB) 6428549.07 6267079.11 2.58%

Proportion of R&D spending

0.43%0.45%-0.02%

in operating revenue

Capitalized amount of R&D

0.000.00

spending (RMB)

Proportion of capitalized

R&D spending in R&D 0.00% 0.00%

spending

Reasons for and impact of significant changes in the Company’s R&D personnel

□Applicable□ Not applicable

19Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Reasons for significant changes in the proportion of total R&D spending in operating revenue as compared with the previous year

□Applicable□ Not applicable

Reasons for substantial changes in the capitalization rate of R&D spending and explanation of the reasonableness

□Applicable□ Not applicable

5. Cash flow

Unit: RMB

Year-on-year

Items 2025 2024

increase/decrease

Subtotal of cash inflows from

1508617176.991398979028.557.84%

operating activities

Subtotal of cash outflows for

1397521270.821281058598.569.09%

operating activities

Net cash flows from operating

111095906.17117920429.99-5.79%

activities

Subtotal of cash inflows from

641736.88

investment activities

Subtotal of cash outflows for

113832091.1789869974.6226.66%

investment activities

Net cash flows from

-113190354.29-89869974.62-25.95%

investment activities

Subtotal of cash inflows from

123291702.8180221370.3553.69%

financing activities

Subtotal of cash outflows for

86924601.05103610320.09-16.10%

financing activities

Net cash flows from financing

36367101.76-23388949.74255.49%

activities

Increase in cash and cash

34869026.106309840.37452.61%

equivalents

Key factors for significant year-on-year changes in relevant data

□ Applicable □Not applicable

(1) Net cash outflow from investing activities increased compared to the same period last year primarily due to higher

expenditures on the acquisition and construction of fixed assets during the current period.

(2) Net cash flow from financing activities increased compared to the same period last year primarily due to an increase in cash

received from borrowings during the current period.Reasons for significant differences between the net cash flows from operating activities during the Reporting Period and the net

profits for the year

□ Applicable □Not applicable

For details refer to “Section VIII. VII. 53 Complementary information to the cash flow statement.”

20Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

V. Analysis of Non-main Businesses

□ Applicable □Not applicable

Unit: RMB

Proportion in total Whether it is

Amount Reasons of formation

profits sustainable

It was mainly the

income from long-term

equity investment

Investment income -436729.96 -0.96% No

calculated using the

equity method in the

Reporting Period.It was mainly the

inventory revaluation

Asset impairment -22907869.69 -50.60% No

reserve accrued during

the Reporting Period.Non-operating income 238593.49 0.53% No

It was mainly the loss

Non-operating from the scrapping of

2170220.93 4.79% No

expenses fixed assets during the

Reporting Period.VI. Analysis of Assets and Liabilities

1. Significant changes in asset components

Unit: RMB

At the end of 2025 At the beginning of 2025 Explanation of

Increase/D

Proportion in Proportion in significant

Amount Amount ecrease (%)

total assets total assets changes

Monetary

313096173.7014.44%259476196.5012.32%2.12%

capital

Accounts

77973714.623.60%50522017.282.40%1.20%

receivable

Inventory 381905920.98 17.61% 450431152.28 21.38% -3.77%

Investment

24804626.031.14%26130702.711.24%-0.10%

property

Long-term

equity 441892.08 0.02% 878622.04 0.04% -0.02%

investment

Fixed assets 927820225.94 42.79% 999486042.10 47.44% -4.65%

Construction in

205135249.279.46%118015048.575.60%3.86%

progress

Short-term

16022933.340.74%46013200.002.18%-1.44%

borrowings

Contractual

8866554.080.41%15557313.740.74%-0.33%

liabilities

Long-term

461379416.2321.28%380653409.0218.07%3.21%

borrowings

21Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

The overseas assets account for a higher proportion

□ Applicable □Not applicable

Control Proportion Whether

Specific measures to of overseas there is any

Reasons of Operation Return on

content of Asset size Location guarantee assets in the significant

formation model assets

assets asset Company’s impairment

security net assets risk

HABITAT Wholly-

INTERNA owned Vessel and

29987094 Independen 2360559

TIONAL subsidiary Panama personnel 22.08% No

3.28 t operations 4.66

CORPORA incorporate insurance

TION d overseas

Professional

management

AFRICA Majority-

team

STAR owned

22626143 Independen stationed 1997368

FISHERIE subsidiary Ghana 16.66% No

1.61 t operations overseas and 9.68

S incorporate

vessel and

LIMITED d overseas

personnel

insurance

Professional

ZHONG management

Wholly-

GHA team

owned -

FOODS 12074724 Independen stationed

subsidiary Ghana 6021410 8.89% No

COMPAN 4.07 t operations overseas and

incorporate .62

Y vessel and

d overseas

LIMITED personnel

insurance

2. Assets and liabilities measured at fair value

□Applicable□ Not applicable

3. Restrictions over asset rights as of the end of the Reporting Period

Item Period-end book value Restricted types

Monetary capital

28789884.20 Bill guarantees performance bond

Fixed assets 432974053.41 Mortgage loans

Construction in progress 194062840.63 Mortgage loans

Intangible assets 48074703.98 Mortgage loans

Total 703901482.22

VII. Investment Analysis

1. Overview

□ Applicable □Not applicable

22Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Investment amount for the Reporting Investment amount for the same period

Changes (%)

Period (RMB) in the previous year (RMB)

117669175.29117839388.71-0.14%

2. Significant equity investment acquired during the Reporting Period

□Applicable□ Not applicable

3. Significant non-equity investment in progress during the Reporting Period

□ Applicable □Not applicable

Unit: RMB

Reaso

ns for

failure

Total

Total to

actual

Wheth Invest incom reach

Industr invest

er it is ment e the

ies ment Disclo

Invest an amoun Expect realize planne Disclo

involv amoun Project sure

Project ment invest t for Fund ed d as of d sure

ed in t as at progre index

name metho ment the source invest the end progre date (if

the the end ss (if

d in Report ment of the ss and any)

invest of the any)

fixed ing Report realize

ment Report

assets Period ing the

ing

Period expect

Period

ed

incom

e

Proces The

sing design

-term

Tuna and ed

Self- 37539 loans

Tradin trading 3850 65.17 capacit

constr Yes 532.3 Self-

g of 989.53 % y is

uction 9 owned

Center aquatic not

fund

produc reache

ts d.The

Cold-

Long- design

chain

term ed

Cold Self- wareh 78587 14762

loans 76.00 capacit

Storag constr Yes ousing 152.7 9562.Self- % y is

e No. 5 uction and 1 83

owned not

logisti

fund reache

cs

d.

8243818516

Total -- -- -- 142.2 9095. -- -- 0.00 0.00 -- -- --

422

4.Financial asset investment

(1) Securities investment

□Applicable□ Not applicable

23Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

The Company did not have securities investments during the Reporting Period.

(2) Derivative investment

□Applicable□ Not applicable

The Company did not have derivative investments during the Reporting Period.VIII. Sale of Significant Assets and Equity

1. Sale of significant assets

□Applicable□ Not applicable

The Company did not sell any significant assets during the Reporting Period.

2. Sale of significant equity

□Applicable□ Not applicable

IX. Analysis of Key Shareholding Companies

□ Applicable □Not applicable

Key subsidiaries and shareholding companies affecting the Company’s net profits by more than 10%

Unit: RMB

Company Company Main Registered Operating Operating

Total assets Net assets Net profits

name type business capital revenue profits

Shandong

Zhonglu

Oceanic Food 10432230 52700559 37906333 72987988 26516706. 23679873.Subsidiary

(Yantai) processing 0.00 6.04 0.10 3.68 74 96

Food Co.Ltd.HABITAT

Cold

INTERNA

storage 12476145. 29987094 23969996 12309323 23605594. 23605594.TIONAL Subsidiary

transportati 60 3.28 1.56 1.20 66 66

CORPORA

on

TION

Shandong

Zhonglu

Haiyan Long range 22161734 57941749 38894822 39340447 6776925.6 5952413.5

Subsidiary

Oceanic fishing 9.00 7.60 7.87 0.47 3 6

Fisheries

Co. Ltd.Acquisition and disposal of subsidiaries during the Reporting Period

□Applicable□ Not applicable

Information of key shareholding companies

Shandong Zhonglu Oceanic (Yantai) Food Co. Ltd.: Operating profit for the reporting period was RMB 26516706.74

representing a year-over-year increase of 32.17% primarily due to a year-over-year increase in sales volume for cold storage

processing and trading during the period;

24Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

HABITAT INTERNATIONAL CORPORATION: Operating profit for the reporting period was RMB 23605594.66 a

decrease of 23.16% year-over-year primarily due to a year-over-year decline in operating days resulting from ship dry-docking

and other factors during the period;

Shandong Zhonglu Haiyan Oceanic Fisheries Co. Ltd.: Operating profit for the reporting period was RMB 6776925.63

representing a year-over-year increase of 137.75%. This was primarily due to higher catch volumes lower unit costs and

increased gross profit margins during the period.X. Structured Entities Controlled by the Company

□Applicable□ Not applicable

XI. Prospects of the Company’s Future Development

With the implementation of its marine development planning China has rolled out a series of preferential policies for the overseas

fishing industry since it is an important part of the planning. China’s overseas fishing industry is developing rapidly. However

obtaining resources is still the main focus and raw fish remains the main product while high value-added processed products

market development sales and the production service support system are still weak. Currently as China is carrying out the

conversion of old and new growth drivers the overseas fishing industry will welcome new opportunities for adjustment

transformation and development. It is expected that the future development trends will be as follows: First the oceanic fishing

industry will be stabilized. The fishing of pelagic fish and cephalopods will be expanded. Second the trans-oceanic fishing

industry will be strengthened and improved. The transformation and upgrade of this industry will be promoted through a variety of

measures including changing the cooperation models improving management upgrading fishing boats and the merger and

acquisition of projects. Third the cold storage processing and trading of aquatic products will be developed through the

improvement of the industrial structure and the extension of the industrial chain. Fourth more efforts will be made to strengthen

the development of the production service support system for the fishing industry. Overseas oceanic fishing bases will be

developed to carry out value-added business activities including fishing wharf services fish warehousing and logistics fishing

boat repairs marine transportation replenishment and refueling services.(I) Prospects of the Company’s main businesses

1. Long range fishing

The Company will continue to develop its long range fishing operations with tuna purse seining as the core business. Tuna Purse

Seine Projects – WCPO Purse Seine Fishery: As a holder of the scarce WCPO purse seine fishing indicators the two large-scale

tuna purse seiners "Tailong 7" and "Tailong 9" have maintained stable catch volumes. The Company enjoys sound cooperative

relationships with customers and a stable sales channel for its catches. Atlantic Purse Seine Fishery: The Company will strengthen

management to ensure the continuity of vessel operations to the greatest extent possible and maintain a high rate of voyage

deployment. Longline Projects: While maintaining existing fishing access cooperation the Company will actively explore new

fishing grounds. Jigging (Squid) Projects: Due to the advanced age of the existing vessels and their near-depleted production

capacity the Company is currently advancing the renewal and modification project for two vessels. Concurrently the Company is

assessing the feasibility of developing other squid jigging fishing grounds aiming to continuously explore new fishing grounds

and resources thereby cultivating new profit growth drivers. Trawl Projects: Two new-type trawlers equipped with advanced

technology suitable for modern marine fishery production and aligned with national industrial policies are operating stably in

Ghanaian waters. This ensures the diversification of the Company's operational methods in distant-water fisheries cooperation and

maintains existing profit growth drivers.

2. Maritime transportation

25Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

The Company will strengthen and boost its maritime transportation. Maritime transportation is always a stable business segment in

the Company’s business performance. Depending on the specific situation of the maritime transportation market the Company

will continue to phase out old vessels with small tonnages and upgrade relatively younger maritime transportation vessels with

moderate tonnages to maintain the position of its transportation fleet in the shipping industry.

3. Cold storage processing and trading

Focusing on the future development direction of the cold storage processing and trading segment the Company will vigorously

promote business extension and capability enhancement driving product iteration and upgrading through technological

empowerment. First establish a diversified and multidimensional product portfolio encompassing cooked food products health

foods skincare products and more leading the upgrade of domestic consumption and the transformation of dietary structures.Second deepen the "Three Focuses" business strategy—focusing on major markets key customers and large-scale projects—

while strengthening the "dual-line parallel advancement" sales model and continuing to build the "Zhonglu Tuna" brand. Third

increase R&D investment in health-related fields such as biology and pharmaceuticals and cultivate technological advantages in

areas including biotechnology and intelligent manufacturing. Fourth promote the automation and intelligent transformation of

processing procedures achieving a leap from "manufacturing" to "intelligent manufacturing" and safeguard industry-leading

processing technology through efficiency gains driven by smart solutions. Fifth explore new business models such as platform

economy sharing economy and customized services to transcend traditional market boundaries and open up new avenues for

growth.(II) Future development strategies

Closely aligning the strategic goals for its development the Company will judge the overseas fishing situation grasp opportunities

to expedite development prevent risks and stabilize business performance. The Company will also stick to the overseas fishing

industry as its main business increase brand visibility and extend the industrial chain according to the development vision of“stabilizing fishing consolidating the industrial chain model that integrates cold storage processing trading and transportationimproving product structures and carrying out transformation and upgrading.”

(III) Work plan for 2026

The Company will uphold the concept of “reform-based innovation-driven standardized and steady development” revolve

around the guidelines for “maintaining growth emphasizing standards adjusting structures and promoting transformation” and

focus on improving its development quality. With the purpose of increasing economic returns the Company will convert old

growth drivers into new ones develop markets and drive the construction of key projects. It will strengthen the business

foundation seek progress while maintaining stable development blaze new trails create new models and take a combination of

measures. Centered around the key problems restricting its development the Company will manage production operations

transformation market development and standardized management. It will proactively cultivate new profit growth points and

continuously improve its control competitiveness influence and anti-risk capabilities to ensure the accomplishment of the annual

targets. In 2023 the Company will do the following work: 1) improve the management of seining projects develop more

supporting measures develop diverse markets and increase project profitability. The Company plans to replace an old tuna purse

seiner with a new one .2) It will proceed with the modernization of two squid jigging vessels while assessing the feasibility of

developing other squid fishing grounds continuing to explore new fishing grounds and develop new resources to create new

sources of profit growth. 3) At present the Southern Pacific tuna maritime transportation market has not reached saturation with

abundant room for development. Hence the Company plans to build a cold storage transportation vessel.4) We will continue to

advance the construction of the Tuna Trading Center and the intelligent multi-functional cold storage facility in Phase I Section B

of the Zhonglu Marine Innovation Industrial Park laying the foundation for the company’s product production and cold storage

logistics.5)proactively develop and extend cold storage processing and trading services step up efforts to develop new products

deep-processed products and other high-value-added products create new sales models and cultivate new profit growth points;

6)promote the Company’s transformation to an innovation-driven company through “technological product business andmanagement innovation.”

26Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

(IV) Risks facing the Company and countermeasures

1. Risk of fishing resource fluctuations: Fishing resources usually fluctuate and sometimes the fluctuations are big. Greater

decreases in fishing resources will have a greater impact on the Company’s profits. Cyclic changes climates hydrological

conditions and other relevant conditions are all likely to cause fluctuations in fishing resources. Countermeasures: The Company

will develop new fisheries dispatch vessels on a scientific basis upgrade fishing and production equipment and gradually

improve production vessels. It will make science-based and reasonable arrangements for vessel maintenance equipment repair

materials fish baits spare parts and logistical support for personnel to ensure high sailing rates.

2. Fuel Cost Risks. Due to the Middle East oil crisis international oil prices have fluctuated sharply causing production fuel costs

to surge and thereby squeezing profit margins. Countermeasures: Plan fuel procurement schedules and volumes reasonably; solicit

and compare quotes from various suppliers in advance to minimize fuel procurement costs; and flexibly adjust production

schedules considering measures such as phased vessel idling and docking to reduce fuel consumption and costs.

3. Exchange Rate Risk. In 2025 the U.S. dollar and the Japanese yen are expected to depreciate overall which will have an

adverse impact on revenue settled in foreign currencies. The exchange rate risk facing the seafood processing business remains

significant. Mitigation Measures: Accurately forecast exchange rate trends manage exchange rate risk in accordance with the

principle of exchange rate neutrality and implement appropriate measures in response to potential exchange rate fluctuations to

minimize or avoid losses that may result from such fluctuations.

4. Safety risk: The aging of boats causes a reduction in productivity and market competitiveness. Countermeasures: The Company

will proactively promote the replacement of aged boats improve asset allocation and prevent safety risks.XII. Reception of Surveys Communications and Interviews during the Reporting Period

□ Applicable □Not applicable

Major content

Type of Basic

Time of Place of Mode of Reception discussed and

reception information

reception reception reception subject documents

subject index of survey

provided

The Company’s

production

operations and

Phone Individual other relevant

January 8 2025 Online Individual None

communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

February 21 Phone Individual other relevant

Online Individual None

2025 communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

Phone Individual other relevant

March 31 2025 Online Individual None

communication investors information

were discussed;

no documents

were provided.May 26 2025 Online Phone Individual Individual The Company’s None

27Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

communication investors production

operations and

other relevant

information

were discussed;

no documents

were provided.The Company’s

production

operations and

Phone Individual other relevant

June 10 2025 Online Individual None

communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

Phone Individual other relevant

June 23 2025 Online Individual None

communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

Phone Individual other relevant

June 24 2025 Online Individual None

communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

Phone Individual other relevant

July 14 2025 Online Individual None

communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

Phone Individual other relevant

August 6 2025 Online Individual None

communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

September 25 Phone Individual other relevant

Online Individual None

2025 communication investors information

were discussed;

no documents

were provided.September 26 Phone Individual The Company’s

Online Individual None

2025 communication investors production

28Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

operations and

other relevant

information

were discussed;

no documents

were provided.The Company’s

production

operations and

October 11 Phone Individual other relevant

Online Individual None

2025 communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

October 28 Phone Individual other relevant

Online Individual None

2025 communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

November 12 Phone Individual other relevant

Online Individual None

2025 communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

November 13 Phone Individual other relevant

Online Individual None

2025 communication investors information

were discussed;

no documents

were provided.The Company’s

production

operations and

November 25 Phone Individual other relevant

Online Individual None

2025 communication investors information

were discussed;

no documents

were provided.XIII. Implementation of Market Value Management System and Valuation Enhancement

Plan

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

Whether the Company has disclosed the valuation enhancement plan.□ Yes □No

29Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

The 23rd meeting (extraordinary meeting) of the 8th Board of Directors reviewed and approved the Valuation Enhancement Plan

and the Market Value Management System. The Company will implement a combination of measures including strengthening

core business operations enhancing corporate reputation improving shareholder returns exploring restructuring opportunities and

establishing long-term incentive mechanisms. These initiatives aim to increase the Company’s investment value. For details

please refer to the Shandong Zhonglu Oceanic Fisheries Co. Ltd. Valuation Enhancement Plan (Announcement No.: 2025-05)

and the Shandong Zhonglu Oceanic Fisheries Co. Ltd. Market Value Management System published on www.cninfo.com.cn on

March 1 2025.XIV. Implementation of the “Better Quality Higher Investment Returns” Action Plan

Whether the Company has disclosed the “Better Quality Higher Investment Returns” action plan.□Yes□ No

30Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Section IV Corporate Governance Environmental and Social

I. Basic status of corporate governance

During the reporting period in accordance with the requirements of laws regulations and relevant normative documents such as

the Company Law the Securities Law the Governance Standards for Listed Companies and Self-regulatory Guideline No. 1 of

the Shenzhen Stock Exchange for Listed Companies - Standardized Operation of Main Board Listed Companies the Company

continuously improved its corporate governance structure further standardized its operations and improved its governance level.The shareholders’ meeting board of directors were all be held strictly in accordance with regulations and norms and the directors

can fulfill their duties conscientiously and diligently.Are there significant differences between the actual situation of corporate governance and laws administrative regulations and the

regulations on listed company governance issued by the China Securities Regulatory Commission

□Yes□ No

There is no significant difference between the actual situation of corporate governance and laws administrative regulations and the

regulations on listed company governance issued by the China Securities Regulatory Commission.II. The independence of the Company relative to its controlling shareholders and actual

controllers in guaranteeing the Company’s assets personnel finance institution business

and other aspects

During the reporting period the Company strictly operated in accordance with laws regulations and rules such as the

Company Law and the Articles of Association and established a sound corporate governance structure. The Company is

completely separated from its controlling shareholders and actual controllers in terms of assets personnel finance institution and

business and has independent and complete business and independent management capabilities.

1. Asset integrity. The Company’s assets are complete and independent and have clear ownership relationships. No assets or

funds are occupied by the controlling shareholder and the Company's assets are completely independent of the controlling

shareholder.

2. Personnel independence. The Company has established an independent HR system and a complete salary management

system with an independent workforce. The Company's general manager deputy general manager financial manager board

secretary and other senior management personnel have not held any administrative positions other than directors in the controlling

shareholders or other enterprises under their control and all receive compensations from the Company. The Company's financial

personnel also do not hold part-time positions in controlling shareholders or other enterprises under their control.

3. Financial independence. With an independent financial department and accounting personnel and well-established financial

management and accounting systems the Company is capable of making financial decisions independently. An independent bank

account is opened and taxes are paid independently.

4. Institutional independence. The Company has a sound organizational structure that is completely separate from the

controlling shareholders in terms of institution. The shareholders' meeting board of directors all operate independently and have

independent decision-making and execution capabilities.

5. Business independence. The production operation and administrative management of the Company are completely

independent of the controlling shareholders and there is no horizontal competition with the controlling shareholders.

31Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

III. Horizontal competition

□Applicable□ Non applicable

IV. Information on directors and senior management personnel

1. Basic status

Number

Number Number Number

of Reasons

of of of

shares for

shares shares shares

Employ Term held at Other increase

Term increase reduced held at

Name Gender Age Position ment start the changes or

end date d in the in the the end

status date beginnin (shares) decrease

current current of the

g of the of

period period period

period shares

(shares) (shares) (shares)

(shares)

Chair

man

Party

commi

Nove

ttee Januar

Liang Incumbe mber

Male 53 secreta y 15

Shanglei nt 19

ry and 2029

2020

chairm

an of

Labor

Union

Direct

or and

June Januar

Wang genera Incumbe

Male 57 07 y 15

Huan l nt

20182029

manag

er

Zeng April Januar

Incumbe

Xianzho Male 57 Director 25 y 15

nt

ng 2024 2029

Indepen May Januar

Zhong Incumbe

Male 58 dent 12 y 15

Zhigang nt

director 2022 2029

Wu Indepen April Januar

Incumbe

Henggu Male 47 dent 25 y 15

nt

ang director 2024 2029

Indepen Januar Januar

Zhu Incumbe

Female 48 dent y 15 y 15

Wei nt

director 2026 2029

Emplo

Li anuary Januar

yee Incumbe

Yeshe Male 56 15 y 15

directo nt

ng 2026 2029

r

Deputy

May Januar

Meng General Incumbe

Male 56 16 y 15

Fanyong Manage nt

20192029

r

Fu Male 53 Financia Incumbe Januar 2

32Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Chuanh l nt y 04 Januar

ai director 2019 y 15

2029

Deputy

Dong April Januar

General Incumbe

Guangm Male 54 19 y 15

Manage nt

ing 2022 2029

r

Yu Board Januar Januar

Incumbe

Xiaoqi Male 53 secretar y 02 y 15

nt

ang y 2025 2029

Board Februa Januar

Liang

Male 53 secreta Resign ry 02 y 02

Shanglei

ry 2021 2025

Total -- -- -- -- -- -- 0 0 0 0 0 --

Whether there were any resignation of directors and dismissal of senior executives during the reporting period

□ Yes □No

Mr. Liang Shanglei has applied to resign from the position of Secretary to the Board of Directors due to a change in work

arrangements. The resignation report shall take effect upon delivery to the Board of Directors of the Company. After stepping

down as Secretary to the Board of Directors Mr. Liang will continue to serve as Chairman of the Board and Secretary of the Party

Committee of the Company. For further details please refer to the Announcement on the Resignation and Appointment of the

Secretary to the Board of Directors (Announcement No.: 2025-02) published on January 3 2025 on the CNINFO website

(www.cninfo.com.cn).Changes in Directors and Senior Management of the Company

□ Applicable □Not applicable

Name Position Type Date Reasons

Liang Shanglei Board secretary Resign January 02 2025 Job transfer

Yu Xiaoqiang Board secretary Appointment January 02 2025 Job transfer

2. Employment status

Professional background main work experience and current main responsibilities of current directors and senior management

personnel of the Company

Liang Shanglei male born in October 1972 is a university graduate and a member of the Communist Party of China. His

previous positions include: officer of the Political Department of the Communication Corps of the Second Artillery 54 Base;

political instructor of the Seventh Brigade of the Jinan Detachment of the Armed Police Corps Shandong Corps; director and

deputy political commissar of the Political Division of the Shandong Provincial Corps Hospital of the Armed Police Corps; chief

staff member and publicity officer of the Capital Operation and Income Management Division and deputy director of the

Complaints and Complaints Office (Party Committee Propaganda and Mass Work Department) of the Shandong Provincial State-

owned Assets Supervision and Administration Commission; and employee director deputy general manager secretary of the

Disciplinary Committee deputy Party secretary and Secretary to the Board of Directors of Shandong Zhonglu Oceanic Fisheries

Co. Ltd. He is currently the Party secretary chairman and chairman of the Labor Union of the Company.Wang Huan male born in June 1968 holds a college degree and a Bachelor of Economics. His previous positions include:

staff member of the Overseas Department of Shandong Provincial Aquatic Products Enterprise Group Corporation and deputy

section-level officer stationed at the Fisheries Representative Office in Ghana; deputy section-level officer of the Trade

33Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Department deputy manager of the Ocean Management Department and person in charge (Chief Representative) of the Fisheries

Project in Gambia of Shandong Zhonglu Oceanic Fisheries Co. Ltd.; general manager and chairman of Shandong Zhonglu

Aquatic Shipping Co. Ltd.; and deputy general manager of Shandong Zhonglu Oceanic Fisheries Co. Ltd. He currently serves as

a director and the general manager of the Company.Zeng Xianzhong male born in August 1968 is a provincial spare-time university graduate an auditor and a member of the

Communist Party of China. His previous positions include: deputy head and senior business manager of the Investment and

Development Department and deputy head and senior business manager of the Asset Management Department of Shandong

State-owned Assets Investment Holding Co. Ltd.; supervisor of Inspur Group Co. Ltd.; and chairman of the board of supervisors

of Integrated Electronic Systems Lab Co. Ltd. He currently serves as a full-time external director of Shandong State-owned

Assets Investment Holding Co. Ltd. and serves as a director of the Company.Zhong Zhigang male born in November 1967 holds a master's degree is a first-class lawyer and a member of the

Communist Party of China. He is currently a senior partner of Grandall Law Firm (Jinan). He serves as an independent director of

the Company Huafang Co. Ltd. and Weihai Baihe Co. Ltd.Wu Hengguang male born in February 1979 is a member of the Communist Party of China and a doctoral candidate. He

currently serves as Chair of the Department of Auditing and Professor at Shandong University of Finance and Economics. He

currently serves as an independent director of the Company Shandong Yinuowei Polyurethane Co. Ltd. and Jinneng Technology

Co. Ltd.Zhu Wei female born in October 1977 is a member of the Communist Party of China. She is a doctoral candidate and a non-

practicing certified public accountant. She currently serves as Chair of the Department of Financial Management at the School of

Accounting Shandong University of Finance and Economics. She currently serves as an independent director of the Company

Shandong Publishing & Media Co. Ltd. and Hope-Wish Photoelectronics Technology Co. Ltd.Li Yesheng male born in December 1969 holds a college degree and is a member of the Communist Party of China. His

previous positions include: staff member of the International Cooperation Department and deputy section chief of the Personnel

and Labor Department of Shandong Provincial Aquatic Products Enterprise Group Corporation; and section chief of the Human

Resources Department deputy head of the Human Resources Department and head of the Risk Management Department (Legal

Affairs Department) of Shandong Zhonglu Oceanic Fisheries Co. Ltd. He currently serves as an employee director and director of

the General Manager's Office (Party Committee Office) of Shandong Zhonglu Oceanic Fisheries Co. Ltd. He concurrently serves

as a director of Zhonglu Oceanic (Qingdao) Industrial Investment Development Co. Ltd. and a director of Shandong Zhonglu

Aquatic Shipping Co. Ltd.Meng Fanyong male born in January 1970college degree economist member of the Communist Party of China. Served as

Deputy Chief of the Import and Export Department of Shandong Aquatic Enterprise Group Corporation Deputy Manager of

Shandong Wanxiang Aquatic Products Co. Ltd. Chairman and General Manager of Shandong Zhonglu Oceanic (Yantai) Foods

Co. Ltd. and chairman of Shandong Zhonglu Ocean Refrigeration Co. Ltd.. He is currently a member of the party committee and

deputy general manager of the Company.Fu Chuanhai male born in February 1972 of Han ethnicity holds a postgraduate degree. He is a certified public accountant

and a senior accountant. His previous positions include: audit project manager and deputy department manager of Shandong

Zhengyuan Hexin Certified Public Accountants Firm; deputy head of the Finance Department of Himin Solar Group; deputy

director of the Audit Center of Linuo Group; chief accountant of China Resources Shandong Pharmaceutical Co. Ltd.; and chief

financial officer of Zhongtai Xincheng Asset Management Co. Ltd. He currently serves as the chief financial officer of Shandong

Zhonglu Oceanic Fisheries Co. Ltd.Dong Guangming male born in July 1971 a university graduate a member of the Communist Party of China. Served as a

member of the supply department of Jinan Mingshui Chemical Fertilizer Factory technician and construction leader of Puji Radio

and Television Station of Zhangqiu Radio and Television Jade Bird Information Network Co. Ltd. deputy station chief and

station chief of Diaozhen Radio and Television Station of Zhangqiu Radio and Television Jade Bird Information Network Co.

34Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Ltd. station chief of Zhangqiu City Radio and Television Bureau Puji Radio and Television Station Station Master of Shuangshan

Rural Radio Station of Zhangqiu Branch of Shandong Radio and Television Network Co. Ltd. Senior Director and Director of the

Administration and Comprehensive Department of Juneng Capital Management Co. Ltd. Member of the Party Committee and

Secretary of the Disciplinary Committee of Zhongtai Xincheng Asset Management Co. Ltd. He is a member of the Party

committee and deputy general manager of the Company.Yu Xiaoqiang male born in May 1972 holds a master's degree is a senior economist and a member of the Communist Party

of China. His previous positions include: staff member of the Overseas Department and business supervisor of the Ghana Project

of Shandong Aquatic Products Enterprise Group Corporation; and cadre deputy section chief manager and head of the Oceanic

Management Department of Shandong Zhonglu Oceanic Fisheries Co. Ltd. He currently serves as the secretary to the board of

directors assistant general manager and head of the Enterprise Development Department (Risk Management and Control

Department) of Shandong Zhonglu Oceanic Fisheries Co. Ltd. He concurrently serves as chairman and Party branch secretary of

Zhonglu Oceanic (Qingdao) Industrial Investment Development Co. Ltd. a director of Shandong Zhonglu Oceanic (Yantai) Food

Co. Ltd. and a director of Zhongtai Xincheng Asset Management Co. Ltd.Cases where the controlling shareholder and actual controller also serve as the listed company’s chairman and general manager

□Applicable□ Not applicable

Employment status in shareholder units

□ Applicable □Not applicable

Whether to receive

Shareholder unit Positions held in remuneration and

Staff name Term start date Term end date

name shareholder allowances in

shareholder

Shandong State- Full-time external

owned Assets director and

Zeng Xianzhong Yes

Investment supervisor

Holding Co. Ltd.Employment in other units

□ Applicable □Not applicable

Whether to receive

Positions held in remuneration

Staff name Other unit names Term start date Term end date

other units allowance in other

units

Grandall Lawyers

Zhong Zhigang Senior Partner Yes

(Jinan) Firm

Shandong Chair of the

University of Department of

Wu Hengguang Yes

Finance and Auditing

Economics Professor

Shandong Chair of the

University of Department of

Zhu Wei Yes

Finance and Financial

Economics Management

Punishments of the Company’s current and resigned directors and senior executives during the reporting period in the past three

years by securities regulatory agencies

□Applicable□ Not applicable

3. Remuneration of directors and senior executives

Decision-making procedures determination basis and actual payment of remuneration for directors and senior executives

35Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

The compensation for non-executive directors appointed by the Company’s controlling shareholder is administered and paid by

their respective companies. The compensation for independent directors appointed by the Company is determined in accordance

with the limits approved at the Company’s 2007 Annual General Meeting. The compensation for the Company’s executive

directors and senior management is determined in accordance with the Company’s compensation management regulations.Remuneration of directors and senior executives of the Company during the reporting period

Unit: RMB 10000

Whether to

Total pre-tax receive

Employment remuneration remuneration

Name Gender Age Position

status received from from related

the Company parties of the

Company

Liang Shanglei Male 53 Chairman Incumbent 89.23 No

Director and

Wang Huan Male 57 general Incumbent 89.53 No

manager

Male Independent

Zhong Zhigang 58 Incumbent 4 No

director

Male Independent

Wu Hengguang 47 Incumbent 4 No

director

Male Deputy General

Meng Fanyong 56 Incumbent 67.55 No

Manager

Fu Chuanhai Male 53 Financial director Incumbent 57.33 No

Dong Male Deputy General

54 Incumbent 70.96 No

Guangming Manager

Yu Xiaoqiang male 53 Board secretary Incumbent 43.08 No

Total -- -- -- -- 425.68 --

Basis for evaluating the actual compensation received by all

the Company’s relevant compensation and performance

directors and senior management at the end of the reporting

evaluation management systems

period:

Status of performance evaluation for all directors and senior

Implemented in accordance with the Company’s relevant

management regarding actual compensation received as of the

regulations

end of the reporting period:

Deferred payment arrangements for compensation actually

During the reporting period no directors or senior management

received by all directors and senior management at the end of

had deferred payment arrangements.the reporting period:

Status of clawback provisions regarding compensation actually

received by all directors and senior management as of the end None

of the reporting period:

Other information

□Applicable□ Not applicable

V. Performance of duties by directors during the reporting period

1. Attendance of directors at board meetings and general meetings of shareholders

Attendance of Directors at Board Meetings and Shareholders' Meetings

36Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

The number

Number of Whether fail

of board Number of

board Number of Number of to attend two Attendance

meetings that board

Director meetings board absences board at

should be meetings

name attended by meetings from board meetings in shareholders'

attended in attended on

corresponden entrusted meetings person in a meetings

this reporting site

ce row

period

Liang

1001000否1

Shanglei

Wang Huan 10 0 10 0 0 否 1

Zeng

10010002

Xianzhong 否

Zhong

10010002

Zhigang 否

Wu

10010002

Hengguang 否

Explanation for failing to attend two consecutive Board Meetings in person

2. The situation where the directors raise objections to the relevant matters of the Company

Whether the directors raise objections to the relevant matters of the Company

□Yes□ No

During the reporting period the directors raised no objection to the relevant matters of the Company.

3. Other instructions on the performance of duties by directors

Whether the directors’ suggestions to the Company are adopted

□ Yes □No

Explanation by the directors on whether the relevant proposals of the Company are adopted or not adopted

During the reporting period the directors of the Company strictly followed the relevant provisions and requirements of the

"Articles of Association" "Rules of Procedure of the Board of Directors" and relevant laws and regulations actively attended the

board of directors and shareholders' meetings and performed their duties diligently. Relevant opinions were put forward for

governance and business decision-making of the Company based on the actual situation of the Company. After full

communication and discussion a consensus was formed and the implementation of the resolutions of the board of directors was

resolutely supervised and promoted to ensure scientific timely and efficient decision-making and safeguard the legitimate rights

and interests of the Company and all shareholders.VI. The special committees under the board of directors during the reporting period

Important Other Specific

Number of comments situations in circumstance

Committee Date of Conference

Membership meetings and which duties s of the

name holding content

held suggestions are objection (if

put forward performed any)

Resolutions Wu 1 April 24 1. Proposal According to

37Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

of the first HengguangZ 2025 on reviewing the actual

meeting of hong the full text situation of

the audit ZhigangZen and abstract the company

committee of g Xianzhong of the 2024 after full

the board of annual report communicati

directors in 2. Proposal on and

2025 on reviewing discussion

the 2024 all proposals

annual were

financial unanimously

report passed.

3. Proposal

on reviewing

the profit

distribution

plan for 2024

4. Proposal

on reviewing

the

performance

of the audit

committee

and the

summary

report on the

audit work of

the

accounting

firm in 2024

5.Proposal

on reviewing

the 2024

internal

control self-

evaluation

report

6.Proposal

on reviewing

the provision

for asset

impairment

in 2024

7.Proposal

on reviewing

the first

quarterly

report of

2025

8.Proposal

on reviewing

the internal

audit work

plan for 2025

9.Proposal

on the

Tenure

Economic

Responsibilit

38Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

y Audit

Report of

Comrade

Han Xinguo

10. Proposal

on the Audit

Report on the

Procedures

and Financial

Settlement of

the Project

for

Constructing

Two

Trawlers

11. Proposal

on the Audit

Report of the

Company's

Ghana

Representati

ve Office

1. Proposal

on reviewing

According to

the 2025

the actual

semi-annual

situation of

The second report and its

the company

meeting of Wu summary

after full

the audit HengguangZ 2. Proposal

August 25 communicati

committee of hong 1 on the

2025 on and

the board of ZhigangZen Reappointme

discussion

directors in g Xianzhong nt of

all proposals

2025 Auditors and

were

Determinatio

unanimously

n of Their

passed.Remuneratio

n

According to

the actual

situation of

The third

Proposal on the company

meeting of Wu

reviewing the after full

the audit HengguangZ

October 27 third communicati

committee of hong 1

2025 quarterly on and

the board of ZhigangZen

report of discussion

directors in g Xianzhong

2025 all proposals

2025

were

unanimously

passed.According to

Resolutions

the actual

of the first Proposal on

Zhong situation of

meeting of reviewing the

Zhigang the company

nomination December job

Liang 1 after full

committee of 26 2025 qualifications

Shanglei Wu communicati

the board of of candidates

Hengguang on and

directors in for director

discussion

2025

all proposals

39Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

were

unanimously

passed.According to

the actual

situation of

The first

Liang the company

meeting of

Shanglei Proposal on after full

the Strategy

Zeng August 25 the communicati

Committee 1

Xianzhong 2025 investment on and

of the Board

Zhong plan of 2025 discussion

of Directors

Zhigang all proposals

in 2025

were

unanimously

passed.According to

the actual

situation of

The second

Liang Proposal on the company

meeting of

Shanglei the after full

the Strategy

Zeng November Adjustment communicati

Committee 1

Xianzhong 28 2025 to the 2025 on and

of the Board

Zhong Investment discussion

of Directors

Zhigang Plan all proposals

in 2025

were

unanimously

passed.

1.Proposal According to

on the 2024 the actual

The first

Performance situation of

meeting of

Zhong Assessment the company

the

Zhigang of Senior after full

remuneration

Zeng December Management communicati

and appraisal 1

Xianzhong 26 2025 2.Proposal on and

committee of

Wu on the Term discussion

the board of

Hengguang Incentive all proposals

directors in

Assessment were

2025

of Senior unanimously

Management passed.According to

the actual

The second

situation of

meeting of Proposal on

Zhong the company

the the Special

Zhigang after full

remuneration Incentive

Zeng December communicati

and appraisal 1 Scheme for

Xianzhong 31 2025 on and

committee of the General

Wu discussion

the board of Manager of

Hengguang all proposals

directors in 2025

were

2025

unanimously

passed.VII. Work of the Audit Committee

Whether the Audit Committee found any risks in the Company in the supervision activities during the reporting period

□Yes□ No

40Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

The Audit Committee had no objection to the supervisory matters during the reporting period.VIII. The Company's employees

1. Number of employees professional composition and education level

Number of active employees of the parent company at the end

149

of the reporting period (person)

Number of active employees of major subsidiaries at the end of

703

the reporting period (person)

Total number of active employees at the end of the reporting

852

period (person)

Total number of employees receiving salaries in the current

852

period (person)

Number of retired employees (persons) for whom parent

208

company and major subsidiaries need to bear expenses

Professional composition

Major Constituent Category The number of professional constituents (person)

Production staff 626

Salesperson 29

Technical staff 36

Financial officer 37

Administration staff 124

Total 852

Education level

Education level category Quantity (person)

Master 32

Undergraduate 119

Specialist 111

Secondary school 173

High school and below 417

Total 852

2. Remuneration policy

Scientifically formulates a salary management system based on the market and improves a comprehensive salary system that pays

for "position performance and ability".

3. Training plan

According to the Company's high-quality development needs and the diverse training needs of employees various forms of

employee trainings are carried out in different levels and categories.

4. Labor outsourcing

□Applicable□ Not Applicable

41Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

IX. The Company's profit distribution and capitalization of capital reserves

Profit distribution policy during the reporting period especially the formulation implementation or adjustment of the cash

dividend policy

□Applicable□ Not Applicable

The Company made a profit during the reporting period and the parent company’s profits available to shareholders were positive

but no cash dividend distribution plan was proposed

□Applicable□ Not Applicable

Profit distribution and conversion of capital reserves into share capital during the reporting period

□Applicable□ Not Applicable

The Company plans not to distribute cash dividends or bonus shares or increase share capital from public reserves.X. Implementation of the Company's equity incentive plan employee stock ownership plan

or other employee incentive measures

□Applicable□ Not Applicable

During the reporting period the Company had no equity incentive plan employee stock ownership plan or other employee

incentive measures and their implementation.XI. Construction and implementation of internal control system during the reporting period

1. Construction and implementation of internal control

The Company has a relatively complete internal control system which is constantly updated supplemented and revised according

to development changes and actual conditions. The Company's operations strictly implement various internal control systems.

2. Details of the major deficiencies in internal control discovered during the reporting period

□Yes□ No

XII. The Company's management and control over subsidiaries during the reporting period

Problems

Company Integration Resolve Follow-up

Integration plan Encountered in Measures taken

Name progress progress solution plan

Integration

not applicable not applicable not applicable not applicable not applicable not applicable not applicable

There are abnormalities in the management and control of subsidiaries

□Yes□No

XIII. Internal control self-assessment report or internal control audit report

1. Internal control self-assessment report

Disclosure date of the full text of the

April 24 2026

internal control evaluation report

Disclosure index of the full text of the www.cninfo.com.cn

42Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

internal control evaluation report

The ratio of the total assets of the units

included in the evaluation scope to the

98.94%

total assets of the Company's

consolidated financial statements

The ratio of the operating income of

units included in the evaluation scope to

98.31%

the operating income of the Company's

consolidated financial statements

Defect identification standard

category financial report non-financial reporting

Major flaw:

a. Violation of national laws and

Major flaw:

regulations such as environmental

a. Directors supervisors and senior

pollution;

executives commit fraud;

b. Project decision-making procedures

b. The external audit found that there

are unscientific and lack of democratic

was a material misstatement in the

decision-making procedures lead to

financial statements of the current

decision-making mistakes;

period but the internal control failed to

c. resignation of management personnel

discover the misstatement during the

or technical personnel;

operation;

d. Frequent negative media news;

c. Ineffective supervision of internal

e. The results of internal control

control by the audit committee and

evaluation especially major or important

internal audit agency;

deficiencies have not been rectified;

Important deficiencies: single

Qualitative standard f. Lack of system control or systematic

deficiencies or together with other

failure of systems for important

deficiencies lead to the inability to

businesses.prevent or discover and correct the

Important defect: The seriousness of the

misstatements in the financial report in a

nature of the business involved in a

timely manner although they do not

single defect or together with other

reach and exceed the major deficiencies

defects and its direct or potential

but should still attract the attention of the

negative impact do not reach or exceed

management; other situations are

the major defect but should still attract

determined according to the degree of

the attention of the management; other

impact.situations are determined according to

Common deficiencies: other internal

the degree of impact.control deficiencies that do not constitute

Common deficiencies: other internal

major or important deficiencies.control deficiencies that do not constitute

major or important deficiencies.The quantitative standard for internal The amount of direct property loss is

control deficiencies in financial reports is compared with a certain percentage of

determined by their impact on financial the Company's total profit in the current

statements that is comparing the amount consolidated financial statements to

misstated or omitted (that is the amount determine the type of internal control

affected by internal control deficiencies) defects as follows:

by finance statements which may be or If the amount of direct property loss is

have been caused by internal control greater than 5% of the total profit it shall

Quantitative standard

deficiencies with certain proportion of be judged as a major defect;

the total profit in the Company’s current If the amount of direct property loss is

consolidated financial statements so as greater than 3% and less than 5%

to determine the type of internal control (inclusive) of the total profit it is judged

defects as follows: as an important defect;

If the impact of internal control defects is If the amount of direct property loss is

greater than 5% of the total profit it is less than 3% (inclusive) of the total

judged as a major defect; profit it is judged as a common defect.

43Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

If the impact of internal control defects is

greater than 3% and less than 5%

(inclusive) of the total profit it is

determined to be an important defect;

If the impact of internal control defects is

less than 3% (inclusive) of the total

profit it is judged as a common defect.Number of major deficiencies in

0

financial reports (pieces)

Number of major deficiencies in non-

0

financial reporting (pieces)

Number of important deficiencies in

0

financial reports (pieces)

Number of important deficiencies in non-

0

financial reporting (pieces)

2. Internal control audit report

□ Applicable □Not applicable

Deliberative Opinion Paragraph in Internal Control Audit Report

We believe that your Company maintained effective internal control over financial reporting in all material respects in accordance

with the Basic Standards for Enterprise Internal Control and relevant regulations on December 31 2025.Disclosure of Internal Control Audit Report Disclosure

Disclosure date of the full text of the internal control audit

April 24 2026

report

Internal control audit report full text disclosure index www.cninfo.com.cn

Types of Internal Control Audit Report Opinions Standard unqualified opinion

Whether there are material deficiencies in non-financial

No

reporting

Does the accounting firm issue an internal control audit report with non-standard opinions

□Yes□ No

Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of

directors

□ Yes □No

Whether an internal control non-standard audit opinion was issued during the reporting period or the previous year

□Yes□ No

XIV. The rectification of problems in the self-examination of the special action of corporate

governance of listed companies

Not applicable

XV. Disclosure of Environmental Information

Whether the listed company and its principal subsidiaries are included in the list of enterprises required by law to disclose

environmental information

□Yes□ No

44Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

XVI. Social Responsibility

(I) Supporting Economic and Social Development

We have proactively supported the broader economic and social development agenda by selecting three officials to join the

provincial ‘Four-in’ task force and one official to join the provincial ‘First Secretary’ task force. These officials are playing an

active role in supporting industrial development improving people’s livelihoods and well-being and promoting rural revitalization

thereby driving high-quality economic and social development.(II) Carrying Out Volunteer Services

We are vigorously implementing the Humanistic Care Initiative regularly organizing activities such as visits and goodwill

gestures for frontline seafarers recuperation and rest programs for frontline staff and assistance for employees facing financial

hardship. We are also implementing care measures such as health check-ups for staff and honorable retirement ceremonies

ensuring that employees genuinely feel the organization’s care and warmth. We have thoroughly carried out the ‘I Do Practical

Things for the People’ initiative organizing staff and cadres to engage with local communities and participate in voluntary

activities such as blood donation drives charitable support for farmers legal awareness campaigns community clean-up initiatives

and visits to support those in need thereby contributing to the development of spiritual civilization in the new era.XVII. Consolidate and expand the achievements of poverty alleviation and rural

revitalization

Not applicable

45Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Section V Important Matters

I. Fulfillment of commitments

1. Commitments fulfilled by the Company’s actual controller shareholders related parties acquirers

the Company and other relevant parties and commitments that have not been fulfilled by the end of the

reporting period

□ Applicable □Not applicable

Commitment Commitment Commitment Commitment

Reason Promising party Fulfillment

type content time period

1. The

Company does

not directly or

indirectly own

any shares

equities or

interests in any

other

enterprises

(hereinafter

collectively

referred to as

"Competitors")

that may

compete with

Zhonglu

OCEANIC and

will not directly

Shandong Continue to be

or indirectly

Commitment Provincial effective during

invest in or

made in State-owned Commitment to the period when

acquire any

acquisition Assets horizontal July 23 2008 the Company in progress

Competitors; 2.report or equity Investment competition controls

If any business

change report Holding Co. Zhonglu

opportunity

Ltd. OCEANIC

obtained by the

Company and

other

companies

controlled by

the Company

from any third

party

constitutes or

may constitute

substantial

competition

with the

business of

Zhonglu

OCEANIC the

Company will

immediately

46Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

notify Zhonglu

OCEANIC and

transfer such

business

opportunity to

Zhonglu

OCEANIC to

avoid

horizontal

competition or

potential

horizontal

competition

with Zhonglu

OCEANIC; 3.The Company

and other

companies

controlled by

the Company

will not offer

any business

secrets such as

technical

information

process and

sales channel to

other

companies

enterprises

organizations

and individuals

which compete

with the

business of

Zhonglu

OCEANIC; 4.The Company

promises not to

use the

Company's

position as a

controlling

shareholder to

damage the

rights and

interests of

Zhonglu

OCEANIC and

other

shareholders of

Zhonglu

OCEANIC; 5.The Company

is willing to

bear the direct

and indirect

economic

47Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

losses claims

and additional

expenses

caused by the

violation of the

above

commitments.

1. The related

party

transactions

between the

Company and

other

companies

controlled by

the Company

and Zhonglu

OCEANIC

strictly abide by

the relevant

provisions of

laws and

regulations and

will be

conducted on

the basis of

equality and

voluntariness in

accordance

Shandong with the Continue to be

Commitment Provincial principles of effective during

made in State-owned Related fairness the period when

acquisition Assets transaction equality and July 23 2008 the enterprise in progress

report or equity Investment commitment equivalent controls

change report Holding Co. compensation. Zhonglu

Ltd. The transaction OCEANIC

price will be

determined

according to the

reasonable

price

recognized by

the market. 2.The Company

and other

companies

controlled by

the Company

will strictly

abide by the

regulations on

the avoidance

of related party

transactions in

the articles of

association of

Zhonglu

OCEANIC and

48Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

the related

party

transactions

involved will

be carried out

in accordance

with the related

party

transactions

decision-

making

procedures of

Zhonglu

OCEANIC and

will perform

legal

procedures and

information

disclosure

obligations. 3.The Company

and other

companies

controlled by

the Company

guarantee to

strictly abide by

laws

regulations and

normative

documents as

well as the

relevant

provisions of

the articles of

association of

Zhonglu

OCEANIC and

to exercise

shareholder

rights and

perform

shareholder

obligations on

an equal

footing with

other

shareholders in

accordance

with legal

procedures not

to take

advantage of

the position of

the controlling

shareholder to

seek improper

interests and

49Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

not to damage

the legitimate

rights and

interests of

Zhonglu

OCEANIC and

other

shareholders. 4.The above

commitments

will continue to

be effective

during the

period when the

Company

controls

Zhonglu

OCEANIC. If

the Company

fails to fulfill

the

commitments

made in this

letter of

commitment

and causes any

losses and

consequences

to Zhonglu

OCEANIC the

Company will

bear the

corresponding

liability for

compensation.Whether the

promise is

Yes

fulfilled on

time

If the

commitment is

overdue and not

fulfilled the

specific reasons

for the failure None

to fulfill and

the next work

plan shall be

explained in

detail.

2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in the

profit forecast period the Company will explain whether the assets or projects have reached the original

profit forecast and why

□Applicable□ Not Applicable

50Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

3. The Company's performance commitments

□Applicable□ Not Applicable

II. Non-operating capital occupation of listed companies by controlling shareholders and

other related parties

□Applicable□ Not Applicable

During the reporting period of the Company there was no non-operating capital occupation of listed companies by controlling

shareholders and other related parties.III. Illegal external guarantees

□Applicable□ Not Applicable

During the reporting period the Company had no external guarantees in violation of regulations.IV. Explanation of the board of directors on the latest “non-standard audit report”

□Applicable□ Not Applicable

V. Explanation of the board of directors board of supervisors and independent directors (if

any) on the “non-standard audit report” of the accounting firm for the reporting period

□Applicable□ Not Applicable

VI. Compared with the financial report of the previous year an explanation on the changes

in accounting policies and accounting estimates or the correction of major accounting errors

□Applicable□ Not Applicable

During the Reporting Period the Company had no changes in accounting policies and accounting estimates or the correction of

major accounting errors.VII. Explanation on changes in the scope of consolidated statements compared with the

financial report of the previous year

□Applicable□ Not Applicable

During the reporting period of the Company there was no change in the scope of consolidated statements.VIII. Appointment and Dismissal of Accounting Firms

The current accounting firm

Shanghai Certified Public Accountants (special general

Domestic accounting firm name

partnership)

Domestic accounting firm remuneration (RMB 10000) 35

Consecutive years of audit services provided by domestic

5

accounting firms

The name of the certified public accountant of the domestic Xu Mao Wang Zhenbing

51Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

accounting firm

Consecutive years of audit services of CPAs of domestic

Xu Mao (4 years) Wang Zhenbing (2 year)

accounting firms

Whether to change the accounting firm in the current period

□Yes□ No

Employment of internal control audit accounting firms financial consultants or sponsors

□ Applicable □Not applicable

At the same time the Company hired Shanghai Certified Public Accountants (special general partnership) as the Company's

internal control audit accounting firm in 2025 and paid a total of RMB 100000 in remuneration.IX. Facing delisting after annual report disclosure

□Applicable□ Not applicable

X. Matters related to bankruptcy and reorganization

□Applicable□ Not applicable

During the reporting period there were no matters related to bankruptcy and reorganization of the Company.XI. Major litigation and arbitration matters

□Applicable□ Not applicable

During the reporting period the Company had no major lawsuits or arbitrations.XII. Punishment and rectification

□Applicable□ Not applicable

There was no punishment and rectification in the reporting period of the Company.XIII. Integrity status of the Company and its controlling shareholders and actual controllers

□Applicable□ Not applicable

XIV. Significant connected transactions

1. Connected transactions related to daily operations

□Applicable□ Not applicable

During the reporting period of the Company there was no connected transaction related to daily operation.

2. Connected transactions in the acquisition and sale of assets or equity

□Applicable□ Not applicable

During the reporting period there was no connected transaction involving asset or equity acquisition or sale.

52Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

3. Connected transactions of joint foreign investment

□Applicable□ Applicable

During the reporting period there was no connected transaction involving joint external investment.

4. Related creditor's rights and debts

□ Applicable □Applicable

Whether there are any non-operational related-party receivables and payables

□Yes□No

During the reporting period the Company had no non-operating related-party receivables or payables.

5. Contacts with associated financial companies

□Applicable□ Not applicable

There is no deposit loan credit or other financial business between the Company and associated financial company or the related

party.

6. Communications between financial companies controlled by the Company and related parties

□Applicable□ Not applicable

There is no deposit loan credit or other financial business between the financial company controlled by the Company and related

parties.

7. Other major connected transactions

□Applicable□ Not applicable

During the Reporting Period the Company had no other significant connected transactions.XV. Significant contracts and their performance

1. Matters concerning trusteeship contracting and leasing

(1) Trusteeship

□ Applicable □Not applicable

Explanation on trusteeship

April 2022 the Company has been entrusted by Shandong State-owned Assets Investment Holding to manage its subsidiary

Zhongtai Xincheng Asset Management Co. Ltd. (hereinafter referred to as "Zhongtai Xincheng"). Zhongtai Xincheng is not

included in the scope of the Company's consolidated statements.Projects that bring profit or loss to the Company amounting to more than 10% of the Company's total profit in the reporting period

□Applicable□ Not applicable

During the reporting period of the Company there was no trusteeship project which brings profit or loss for the Company

amounting to more than 10% of the total profit of the Company.

53Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

(2) Contracting status

□Applicable□ Not applicable

There was no contracting in the reporting period of the Company.

(3) Lease situation

□Applicable□ Not applicable

There was no lease in the reporting period of the Company.

2. Major guarantee

□ Applicable □Not applicable

Unit: RMB 10000

External guarantees provided by the Company and its subsidiaries (excluding guarantees for subsidiaries)

Announc Whether

Name of Actual

ement Actual Counter- Whether related-

guarante Guarante guarante Guarante Collatera Guarante

date of occurren guarante complete party

e e quota e e type l (if any) e period

guarante ce date e (if any) d guarante

recipient amount

e quota e

Guarantees provided by the Company to its subsidiaries

Announc Whether

Name of Actual

ement Actual Counter- Whether related-

guarante Guarante guarante Guarante Collatera Guarante

date of occurren guarante complete party

e e quota e e type l (if any) e period

guarante ce date e (if any) d guarante

recipient amount

e quota e

Zhonglu

Oceanic

(Qingda

Joint and

o) January

Decemb several

Industry January 2 2025 -

er 25 24000 9738.42 liability No No

Investm 2 2025 January

2024 guarante

ent and 1 2045

e

Develop

ment

Co. Ltd.Total actual

Total approved

guarantee amount

guarantee quota for

provided to

subsidiaries during 0 9738.42

subsidiaries during

the Reporting Period

the Reporting Period

(B1)

(B2)

Total balance of

Total approved

actual guarantee

guarantee quota for

provided to

subsidiaries at the 24000 9738.42

subsidiaries at the

end of the Reporting

end of the Reporting

Period (B3)

Period (B4)

Guarantees provided between subsidiaries

Name of Announc Guarante Actual Actual Guarante Collatera Counter- Guarante Whether Whether

guarante ement e quota occurren guarante e type l (if any) guarante e period complete related-

54Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

e date of ce date e e (if any) d party

recipient guarante amount guarante

e quota e

Total guarantees of the Company (sum of the first three categories)

Total actual

Total approved

guarantee amount

guarantee quota

0 provided during the 9738.42

during the Reporting

Reporting Period

Period (A1+B1+C1)

(A2+B2+C2)

Total approved Total balance of

guarantee quota at actual guarantee at

the end of the 24000 the end of the 9738.42

Reporting Period Reporting Period

(A3+B3+C3) (A4+B4+C4)

Proportion of total guarantee balances

8.90%

(A4+B4+C4) in the Company’s net assets

Of which:

Balance of guarantees provided to

shareholders actual controllers and their 0

affiliates (D)

Balance of debt guarantee provided directly

or indirectly to recipients with a debt-to-asset 0

ratio exceeding 70% (E)

Amount of total guarantees exceeding 50%

0

of net assets (F)

Sum of the above three guarantees (D+E+F) 0

Disclosure of guarantee obligations triggered

or evidence indicating probable joint liability None

for undue guarantee contracts (if applicable)

External guarantees in violation of prescribed

None

procedures (if applicable)

Details regarding the use of a combined guarantee

3. Entrusting others to manage cash assets

(1) Entrusted financial management

□Applicable□ Not applicable

There was no entrusted wealth management in the reporting period of the Company.

(2) Entrusted loans

□Applicable□ Not applicable

There was no entrusted loan in the reporting period of the Company.

4. Other major contracts

□Applicable□ Not applicable

There were no other major contracts in the reporting period of the Company.

55Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

XVI. Use of Proceeds

□Applicable□ Not applicable

The Company had no use of proceeds during the reporting period.XVII. Explanation of other important matters

□Applicable□ Not applicable

There were no other important matters that need to be explained in the reporting period of the Company.XVIII. Significant events of the Company's subsidiaries

□Applicable□ Not applicable

56Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Section VI Changes in Shares and Information on Shareholders

I. Changes in shares

1. Changes in shares

Unit: share

Before this change Increase or decrease in this change (+ -) After this change

Issuance of Issuance of Issuance of

Quantity Proportion Quantity Proportion Quantity Proportion

new shares new shares new shares

I. Unlisted

12807131280713

tradable 48.13% 48.13%

2020

shares

1.

12807131280713

Promoter 48.13% 48.13%

2020

shares

Of

which: 1278113 1278113

48.03%48.03%

shares held 20 20

by the state

Shares

held by

domestic 260000 0.10% 260000 0.10%

legal

persons

Shares

held by

foreign

legal

persons

Other

2.

Raising

legal person

shares

3.

Internal

staff shares

4.

Preferred

stock or

other

II. Listed

13800001380000

tradable 51.87% 51.87%

0000

shares

1. RMB

ordinary

shares

2.138000051.87%138000051.87%

57Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Foreign 00 00

shares listed

in China

3.

Foreign

shares listed

overseas

4. Others

III. Total

26607132660713

number of 100.00% 100.00%

2020

shares

Reason for Share Change

□Applicable□ Not applicable

Approval status of shareholding changes

□Applicable□ Not applicable

Transfer status of share changes

□Applicable□ Not applicable

The impact of shareholding changes on financial indicators such as basic earnings per share diluted earnings per share and net

assets per share attributable to ordinary shareholders of the Company in the last year and the latest period

□Applicable□ Not applicable

Other content that the Company deems necessary or required by securities regulators to disclose

□Applicable□ Not applicable

2. Changes in restricted shares

□Applicable□ Not applicable

II. Securities Issuance and Listing

1. Securities issuance (excluding preferred shares) during the reporting period

□Applicable□ Not applicable

2. Explanation on changes in the total number of shares of the Company and the structure of

shareholders and changes in the structure of the Company's assets and liabilities

□Applicable□ Not applicable

3. Existing internal employee shares

□Applicable□ Not applicable

III. Shareholders and actual controllers

1. Number of shareholders and shareholding status of the Company

Unit: share

58Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

The total Total number

number of of preferred

ordinary shareholders

Total number The total number of preference

shareholders with voting

of ordinary shareholders whose voting

at the end of rights

shareholders rights have been restored at the

8685 the previous 8568 restored at the 0 0

at the end of end of the month preceding the

month before end of the

the reporting annual report disclosure date (if

the annual reporting

period any) (see note 8)

report period (if

disclosure any) (see note

date 8)

Shareholdings of shareholders holding more than 5% of the shares or the top 10 shareholders(excluding shares lent through refinancing)

Number of Pledge Mark or Frozen

Changes Number of

shares held at Number of Situation

Shareholder Nature of Shareholding during the unlisted

the end of the tradable

name shareholders ratio reporting tradable

reporting shares held

period shares held Share Status Quantity

period

Shandong

State-owned

Assets State-owned 12573132 12573132 Not

47.25%000

Investment legal person 0 0 Applicable

Holding Co.Ltd.Chen Foreign Not

2.16%57604270057604270

Tianming natural person Applicable

Domestic Not

Zhu Shuzhen 2.11% 5624447 168200 0 5624447 0

natural person Applicable

Domestic Not

Zhan Hanbin 2.10% 5582331 689331 0 5582331 0

natural person Applicable

Domestic Not

Cai Yujiu 1.75% 4669000 700 0 4669000 0

natural person Applicable

Domestic Not

Chen Cirou 1.40% 3715100 455000 0 3715100 0

natural person Applicable

China

National

State-owned Not

Heavy Duty 0.73% 1950000 0 1950000 0 0

legal person Applicable

Truck Group

Co. Ltd.Domestic Not

Qu Chen 0.57% 1516000 1516000 0 1516000 0

natural person Applicable

Domestic Not

Lin Mingyu 0.51% 1364201 -35800 0 1364201 0

natural person Applicable

Chen Domestic Not

0.41%108010017900010801000

Zhongming natural person Applicable

Strategic investors or general

legal persons becoming the top

10 shareholders due to None

allotment of new shares (if any)

(see Note 3)

Explanation on the related

The Company is unaware of whether there is any affiliation or whether they constitute a party acting

relationship or concerted action

in concert as defined in the Measures for the Administration of Acquisitions of Listed Companies.of aforesaid shareholders

Explanation of the above-

mentioned shareholders None

involved in entrusted/entrusted

59Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

voting rights and waiver of

voting rights

Special instructions for

repurchase accounts among the

None

top 10 shareholders (if any)

(see Note 10)

Shareholdings of the top 10 tradable shareholders (excluding share lending via securities lending and locked-up shares of executives)

Type of shares

Shareholder name Number of tradable shares held at the end of the reporting period Type of

Quantity

shares

Domestic

Chen Tianming 5760427 listed foreign 5760427

shares

Domestic

Zhu Shuzhen 5624447 listed foreign 5624447

shares

Domestic

Zhan Hanbin 5582331 listed foreign 5582331

shares

Domestic

Cai Yujiu 4669000 listed foreign 4669000

shares

Domestic

Chen Cirou 3715100 listed foreign 3715100

shares

Domestic

Qu Chen 1516000 listed foreign 1516000

shares

Domestic

Lin Mingyu 1364201 listed foreign 1364201

shares

Domestic

Chen Zhongming 1080100 listed foreign 1080100

shares

Domestic

Huang Jiayi 1033987 listed foreign 1033987

shares

Domestic

Liu Xinghui 854211 listed foreign 854211

shares

Explanation on the associated

relationship or concerted action

among the top 10 shareholders

of tradable shares not subject to

The Company is unaware of whether there is any affiliation or whether they constitute a party acting

sales restrictions and between

in concert as defined in the Measures for the Administration of Acquisitions of Listed Companies.the top 10 shareholders of

tradable shares not subject to

sales restrictions and the top 10

shareholders

Explanation on the

participation of the top 10

ordinary shareholders in the None

margin trading and short selling

business (if any) (see Note 4)

Lending of shares through refinancing business participated by the shareholders holding more than 5% of the shares top 10

60Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

shareholders and top 10 shareholders with unlimited tradable shares

□Applicable□ Not applicable

Changes from the previous period due to refinancing lending/repayment reasons of the top 10 shareholders and top 10

shareholders with unlimited tradable shares

□Applicable□ Not applicable

Whether the Company’s top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales

restrictions conducted agreed repurchase transactions during the reporting period

□Yes□ No

The Company's top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales restrictions

did not conduct agreed repurchase transactions during the reporting period.

2. Information about the controlling shareholder of the Company

Nature of the controlling shareholder: local state-owned holding

Type of controlling shareholder: legal person

Controlling Legal representative/

Date of establishment Organization Code Main business

shareholder name Principal

Operation management

and disposal of state-

owned property (share)

rights asset

Shandong Provincial

management equity

State-owned Assets

Luan Jian March 25 1994 91370000163073167C investment

Investment Holding

management and

Co. Ltd.operation corporate

restructuring mergers

and acquisitions

investment consulting.Equity of other

domestic and foreign

listed companies held

Not Applicable

by controlling

shareholders during the

reporting period

Changes in controlling shareholders during the reporting period

□Applicable□ Not Applicable

During the reporting period the controlling shareholder of the Company remained unchanged.

3. The actual controller of the Company and its persons acting in concert

The nature of the actual controller: local state-owned assets management agency

Type of actual controller: legal person

Legal representative/

Actual controller name Date of establishment Organization Code Main business

Principal

Shandong Provincial Fulfilling the investor's

People's Government duties supervising the

State-owned Assets maintenance and

Liu Jianjun June 18 2004 None

Supervision and appreciation of the

Administration state-owned assets

Commission under supervision etc.

61Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Equity of other

domestic and foreign

listed companies

Not applicable

controlled by the actual

controller during the

reporting period

Changes in the actual controller during the reporting period

□Applicable□ Not Applicable

The actual controller of the Company did not change during the reporting period.Block diagram of the property rights and control relationship between the Company and the actual controller

Shandong Provincial People's Government State-owned Assets Supervision and Administration Commission

Shandong Provincial State-owned Assets Investment Holding Co. Ltd.The Company

The actual controller controls the Company through trust or other asset management methods

□Applicable□ Not Applicable

4. The accumulative number of pledged shares of the Company's controlling shareholder or the largest

shareholder and its persons acting in concert accounts for 80% of the Company's shares held by it

□Applicable□ Not Applicable

5. Other legal person shareholders holding more than 10% of the shares

□Applicable□ Not Applicable

6. Restrictions on reduction of shareholding by Controlling shareholders actual controllers

reorganization parties and other commitment subjects

□Applicable□ Not Applicable

IV. Specific implementation of share repurchase during the reporting period

Implementation progress of share repurchases

□Applicable□ Not Applicable

The progress of the implementation of the reduction of repurchased shares by means of centralized bidding transactions

□Applicable□ Not Applicable

V. Preferred Shares

□Applicable□ Not Applicable

During the reporting period the Company had no preferred shares.

62Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Section VII Bonds

□Applicable□ Not Applicable

63Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Section VIII Financial Report

Auditor's Report

SCPAR (2026) No. 6997

Date: April 22 2026

To the Shareholders of Shandong Zhonglu Oceanic Fisheries Co. Ltd:

I. Opinion

We have audited the financial statements of Shandong Zhonglu Oceanic Fisheries Co. Ltd (hereafter

referred to as “the Company”) which comprise the consolidated and the Company's balance sheets as

at December 31 2025 the consolidated and the Company's statements of income the consolidated and

the Company's statements of cash flows and the consolidated and the Company's statements of

changes in equity for the year then ended and notes to the financial statements.In our opinion the accompanying financial statements give a true and fair view of the financial position

of the Company as at December 31 2025 and of its financial performance and cash flows for the year

then ended in accordance with Accounting Standards for Business Enterprises.II. Basis for Opinion

We conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards.Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the

Audit of the Financial Statements section of our report. We are independent of the Company in

accordance with the Code of Ethics for Chinese Certified Public Accountants and have fulfilled our

other ethical responsibilities in accordance with the Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion.III. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance in our

audit of the financial statements of the current period. These matters were addressed in the context of

our audit of the financial statements as a whole and in forming our opinion thereon and we do not

provide a separate opinion on these matters.The key audit matters identified in our audit are as follows:

A. Revenue recognition

1. The Matter

64Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Regarding income accounting policies please refer to Note Ⅳ .27; Please refer to Note Ⅵ .37 for the

amount of income generated.In 2025 your company's operating revenue amounted to 1486.6927 million yuan. As revenue is a key

indicator of company profits there is an inherent risk of misstatement in whether revenue is based on

real transactions and whether it is included in appropriate accounting periods. Therefore we have

identified revenue recognition as a key audit item.

2. Audit response

Our audit procedures for revenue recognition mainly include:

* Understand the internal control design related to revenue recognition in your company evaluate the

effectiveness of the design and implement walkthrough testing and check whether the relevant internal

control systems are effectively implemented;

* Verify the principles and methods of revenue recognition combined with the essence of the

company's business and the "five step method" examine the contract signing methods and contents

under different business models analyze the rights and obligations of the contract signing parties

examine various performance obligations identify the fulfillment of performance obligations over a

period of time and determine whether the fulfillment of performance obligations at a certain point in

time complies with the provisions of the Enterprise Accounting Standards;

* Check the authenticity of income and the basis for revenue recognition such as sales contracts

delivery orders value statements or settlement documents transportation bills customs declaration

materials bills of lading credit policies etc. Evaluate whether your company's revenue recognition

meets the requirements of the Enterprise Accounting Standards based on the collection of accounts

receivable after the period;

* Conduct a cut-off test select samples from income transactions recorded before and after the

balance sheet date and check for any cross period income;

* Implement a letter of confirmation procedure for major clients extract sufficient samples to verify

the amount and balance of accounts receivable and contractual liabilities and confirm the

reasonableness of revenue recognition.B. The impairment of inventory

1. Key audit matters

Regarding inventory accounting policies please refer to Note Ⅳ.11; Please refer to Note Ⅵ.6 for the

book balance and provision for impairment of inventory.As of December 31 2025 the book balance of your company's inventory is 408.8094 million yuan

with a provision for impairment of 26.9035 million yuan and a book value of 381.9059 million yuan

65Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

accounting for 17.61% of the total assets at the end of the period. Given the significant amount of

inventory and the significant judgment of management involved in the provision for inventory

impairment we have identified the provision for inventory impairment as a key audit item.

2. Audit response

Our audit procedures for inventory impairment mainly include:

* Understand the design of internal controls related to inventory management and inventory

impairment in your company evaluate the effectiveness of the design and implement walkthrough tests

and check whether the relevant internal control systems are effectively implemented;

* Implementing inventory monitoring checking the quantity condition and product shelf life of

inventory;

* Obtain the inventory age list of ending inventory conduct analytical review on inventory with

longer inventory age and analyze whether the provision for inventory impairment is reasonable;

* Analyze the changes in the provision for inventory impairment made in previous years during the

current period and assess the adequacy of the provision for inventory impairment; Obtain the latest

product sales prices before and after the balance sheet date sample the inventory sold after the balance

sheet date and compare the actual selling price of the sample with the expected selling price;

* Obtain the calculation table and relevant basis for impairment provision provision from the

management evaluate the rationality of the key data provisioned and recalculate to evaluate the

accuracy of the management's impairment calculation process;

* Review whether the provision for inventory depreciation has been fully and appropriately disclosed

in accordance with the standard requirements.C. Government Grants

1. Key audit matters

Regarding other income accounting policies please refer to NoteⅣ.29; regarding the amount of other

income please refer to NoteⅥ.43; regarding government grants please refer to NoteⅩ.As of December 31 2025 the current-period amount of other income of your Company was 59.3710

million yuan of which 55.7587 million yuan relating to the subsidy for improvement of international

performance capability had not been received. The recognition of such amount in other income has a

material impact on the company’s profit. As of December 31 2025 the total receivable subsidy for

improvement of international performance capability of the Company and its consolidated subsidiaries

amounted to 107.2879 million yuan. We have identified government grants as a key audit matter.

66Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

2. Audit response

Our audit procedures for government grants mainly include:

* Obtain the official documents in respect of government grants and inspect relevant bank transaction

records.* Conduct formal inquiries with the responsible director of Laoshan District Bureau of Agriculture

and Rural Affairs so as to verify the authenticity and accuracy of the government granting documents.* Calculate and accrue allowance for doubtful debts on receivables from government grants in strict

accordance with the Company’s accounting policies for bad debt provision.* Interview the relevant handling personnel to enquire into and document the detailed application

process of the government grants the underlying causes for failure to receive the funds and whether a

definite schedule for fund disbursement has been arranged.IV. Other Information

The directors of the Company are responsible for the other information. The other information

comprises all of the information included in the annual report other than the financial statements and

our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express

any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other

information and in doing so consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the audit or otherwise appears to be materially

misstated.If based on the work we have performed we conclude that there is a material misstatement of this

other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Directors and Those Charged with Governance for the Financial

Statements

The directors of the Company are responsible for the preparation of financial statements that give a

true and fair view in accordance with Accounting Standards for Business Enterprises and for such

internal control as the directors determine is necessary to enable the preparation of the financial

statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the directors are responsible for assessing the Company’s ability

to continue as a going concern disclosing as applicable matters related to going concern and using the

going concern basis of accounting unless the directors either intend to liquidate the Company or to

cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting

67Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

process.VI. Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement whether due to fraud or error and to issue an auditor’s report that

includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in

accordance with auditing standards will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the

aggregate they could reasonably be expected to influence the economic decisions of users taken on the

basis of these financial statements.As part of an audit in accordance with auditing standards we exercise professional judgement and

maintain professional scepticism throughout the audit. We also:

A. Identify and assess the risks of material misstatement of the financial statements whether due to

fraud or error design and perform audit procedures responsive to those risks and obtain audit

evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting

a material misstatement resulting from fraud is higher than for one resulting from error as fraud may

involve collusion forgery intentional omissions misrepresentations or the override of internal control.B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances.C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the directors.D. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and

based on the audit evidence obtained whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If

we conclude that a material uncertainty exists we are required to draw attention in our auditor’s report

to the related disclosures in the financial statements or if such disclosures are inadequate to modify

our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s

report. However future events or conditions may cause the Company to cease to continue as a going

concern.E. Evaluate the overall presentation structure and content of the financial statements and whether the

financial statements represent the underlying transactions and events in a manner that achieves fair

presentation.F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within the Company to express an opinion on the financial statements. We are

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responsible for the direction supervision and performance of the group audit. We remain solely

responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned

scope and timing of the audit and significant audit findings including any significant deficiencies in

internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant

ethical requirements regarding independence and to communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence and where applicable related

safeguards.From the matters communicated with those charged with governance we determine those matters that

were of most significance in the audit of the financial statements of the current period and are therefore

the key audit matters. We describe these matters in our auditor’s report unless law or regulation

precludes public disclosure about the matter or when in extremely rare circumstances we determine

that a matter should not be communicated in our report because the adverse consequences of doing so

would reasonably be expected to outweigh the public interest benefits of such communication.C.P.A

Mao Xu

Zhenbing Wang

Shanghai Certified Public Accountants (Special General Partnership)

Shanghai China

69Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Ⅰ.Profile of the Company

1． Registered Capital Place of Registration Organization Type and Head Office Address

The registered address of Shandong Zhonglu Oceanic Fishery Co. Ltd. (hereinafter referred to as “the Company”)

has a registered capital of RMB 266071300 and its registered address is 2501 Building 1 31 Xianxialing Road

Laoshan District Qingdao Shandong. It is a company limited by shares established on July 30 1999 by means of

promotion with Shandong Aquaculture Enterprise Group as the key promoter with the approval of the Shandong

Economic Restructuring Commission through Document LTGZ [1999] No. 85. With the approval of the China

Securities Regulatory Commission through Document ZJFXZ [2000] No. 82 on June 26 2000 the Company’s B-

shares were listed on the Shenzhen Stock Exchange on July 24 2000. The short stock name is “Zhonglu B” and the

stock code is “200992” .The Company’s basic organizational structure consists of: Annual General Meeting Board of Directors Board of

Supervisors General Manager’s Office (Party Committee’s Office) Board Office Human Resources Department

(Organizational Department) Financial Management Department (Capital Operations Department) Corporate

Development Department Audit Department Oceanic Management Departments Discipline Inspection

Committee’s Office Party’s Mass Work Department and Risk Control Department (Legal Affairs Department).

2. The nature of the business and the main business activities the Company actually engaged in.

The Company’s key products include tuna and its products.The Company’s business scope is: general business items: processing and sale of aquatic products; commodity import

and export within the approved scope; manufacture and sale of machine-made ice; manufacture installation and

repair of refrigeration equipment; refrigeration and cold storage; loading unloading and handling services; property

leasing.Business items with prerequisite licensing: open-water fishing and long-range fishing.

3. Name of the parent company and the final group parent company.

As of December 31 2025 the parent company and ultimate controller is Shandong State-owned Assets Investment

Holding Co. Ltd.

4. The approval date of the financial report and the approval date of the financial report.

This financial statement is approved by the resolution of the Board of Directors of the Company on April 222026. In

accordance with the Articles of Incorporation of the Company the financial statements will be submitted to the

general meeting for consideration

Ⅱ. T Basis for the preparation of the financial statements.

1． Foundation of the preparation

The company takes continuing operation as the basis for preparing financial statements and takes the accrual basis as

70Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

the basis for bookkeeping. The company generally adopts the historical cost to measure the accounting elements and

adopts the replacement cost the realizable net value the present value and the fair value on the premise that the

determined amount of the accounting elements can be obtained and be measured reliably.

2. Going concern

The company shall have the ability of going concern for at least 12 months from the end of this report and have no

major matters affecting the ability of going concern.Ⅲ. Statement following the Accounting Standards for Business Enterprises

The Company’s financial statements and notes were issued by the accounting standards application guidelines

accounting standards for business enterprises the China Securities Regulatory Commission issued the public issuance

of securities company information disclosure reporting rules no. 15-the general provisions of financial report [2023

revision] and the requirements of the relevant provisions truly and completely reflects the company's current financial

situation operating results changes in shareholders' equity and cash flow and other relevant information.Ⅳ. Important accounting policies and accounting estimates

According to the actual characteristics of production and operation and the provisions of relevant accounting

standards for enterprises the company has formulated several specific accounting policies and accounting estimates

for transactions and matters such as revenue recognition see Note IV and 27 "revenue" for details. For the statement

of significant accounting judgments and estimates made by management team please refer to Note IV 34 "Major

Accounting judgments and Estimates".

1． Accounting period

The fiscal year starts from January 1 to December 31 of the Gregorian calendar.

2． Operation period

The normal business cycle is the period from the company's purchase of assets for processing to the realization of

cash or cash equivalents. The company takes 12 months as a business cycle and takes it as the liquidity standard of

assets and liabilities.

3． Base currency for bookkeeping

RMB Yuan

4． Importance criteria determination method and selection basis

The preparation and disclosure of the financial statements follow the principle of importance. The matters disclosed

in the notes to the financial statements involve the importance criteria and the importance criteria of the Company are

as follows:

Item Position disclosed in the notes to Importance criteria determination method and

this Financial Statements selection basis

Other profits Note VI 43 1 million yuan

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Item Position disclosed in the notes to Importance criteria determination method and

this Financial Statements selection basis

Important non-wholly owned subsidiary Notes IX 1 and (2) Asset size greater than 100 million Yuan

Important associate companies Notes IX and 2 The net profit scale is greater than 5 million yuan

Important projects under construction Note VI 11 10 million yuan

5． Accounting treatment method of enterprise merger under the same control and not under the same control.

Enterprise merger refers to the transaction or event in which two or more separate enterprises are merged to form a

reporting entity. Business merger is divided into enterprise merger under the same control and enterprise merger not

under the same control.

(1) Enterprise merger under the same control

The enterprises participating in the merger are subject to the final control of the same party or the same multiple

parties before and after the merger and the control is not temporary and is the enterprise merger under the same

control. For an enterprise merger under the same control the party acquiring control over the other enterprises

participating in the merger on the merger date shall be the merger party and the other enterprises participating in the

merger shall be the merged party. The merger date refers to the date on which the merged party actually obtains the

control right of the incorporated party.The assets and liabilities acquired by the consolidated party are measured at the book value of the consolidated party

at the merger date. The balance between the book value of the net assets acquired by the consolidated party (or the

total book value of the issued shares) shall adjust the capital reserve (equity premium); if the capital reserve (equity

premium) is insufficient to offset the retained earnings shall be adjusted.The merger party is the direct expenses incurred in the enterprise merger which shall be recorded into the current

profit and loss at the time of occurrence.

(2) Enterprise merger not under the same control

If the enterprise participating in the merger is not under the final control of the same party or the same multiple

parties before and after the merger it is the enterprise merger not under the same control. For an enterprise merger

not under the same control the party who obtains the control right over the other enterprises participating in the

merger on the purchase date shall be the acquirer and the other enterprises participating in the merger shall be the

acquiree. The date of purchase is the date on which the acquirer actually obtains control over the acquiree.For merger of enterprises not under the same control the cost of consolidation includes the assets paid by the

acquirer on the purchase date to acquire control over the acquiree liabilities incurred or assumed by the acquirer and

equity securities issued to acquire control of the acquiree at the purchase date. The cost of audit for the merger of the

enterprise legal services evaluation and consulting intermediary fees and other management fees shall be recorded in

the current profit and losses. The transaction expense of equity or debt securities issued by the acquirer as the

combined consideration shall be included in the initial recognized amount of equity or debt securities. The contingent

consideration involved shall be included in the consolidated cost according to its fair value on the purchase date. If

there is new or further evidence of the existed situations of the purchase date within 12 months after it the

consolidated goodwill shall be adjusted accordingly. The merger costs incurred by the acquirer and the identifiable net

assets acquired in the merger should be measured at the fair value of the purchase date. The difference between the

72Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

merger cost and the share of the fair value of the identifiable net assets of the purchased party on the purchase date

shall be recognized as goodwill. If the consolidated cost is less than the fair value of identifiable net assets of the

merger first of the fair value of the identifiable assets liabilities and contingent liabilities and combined cost

measurement review the combined cost is still less than the identifiable net assets of the merger the difference

included in the current profit and loss.If the acquirer obtains the deductible temporary difference of the acquiree and is not recognized on the purchase date

because it does not meet the conditions of deferred income tax assets for recognition if new or further information

confirming the existence of relevant situations is obtained with in 12 months after the purchase date the acquirer shall

confirm the deferred income tax assets and reduce the goodwill if the goodwill is insufficient the difference shall be

recognized as the current profit and loss; Except for the above situation the deferred income tax assets related to the

enterprise merger shall be included in the current profit and loss.For business merger not under the same control achieved through multiple transactions step by step it should be

determined whether the multiple transactions belongs to "package deal" according to the Ministry of Finance on the

notice of the accounting standards interpretation no. 5 (accounting [2012] no. 19) and "accounting standards no. 33—

— consolidated financial statements" article 51 criteria about "package deal" (see NoteⅣ.6 judging criteria of the

control and preparation of the consolidated financial statements) For "package transaction" refer to the previous

paragraphs in this section for accounting treatment; For those not belong to "package transaction" distinguish

individual financial statements from consolidated financial statements in the accounting statement:

In individual financial statements the sum of the book value of the equity interest of the acquiree held prior to the

purchase date and the cost of new investment on the purchase date is taken as the initial investment cost of the

investment. Where the equity interest of the acquiree held prior to the purchase date involves other comprehensive

income the other comprehensive income associated with the investment will be accounted for on the same basis as if

the acquiree had disposed of the relevant asset or liability directly (i.e. With the exception of the corresponding share

of the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan by the

acquiree under the equity method the remainder is transferred to investment income for the period).In the consolidated financial statements for the equity of the acquiree held prior to the purchase date remeasure at

the fair value of the equity at the purchase date the difference between the fair value and its book value shall be

included in the current investment income; Where the equity of the acquiree held before the purchase date involves

other comprehensive income the other comprehensive income shall be treated on the same basis as the direct

disposal of the relevant assets or liabilities (i. e. Except for the corresponding share accounted for under the equity

method in the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan by

the acquirer the remainder is converted to investment income for the period at the purchase date).

6． Judging standard of control and the preparation method of the consolidated financial statements

(1) Judging standard of the control

The consolidation scope of consolidated financial statements is determined on the basis of control. Control means

that the Company has the power over the investee enjoys a variable return by participating in the relevant activities of

the investee and has the ability to use the power of the investee to influence the amount of the return. Among them

the Company has the current right to enable the Company to dominate the relevant activities of the investee

regardless of whether the Company actually exercises the power; if the return from the investee may change with the

73Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

performance of the investee it shall be deemed to enjoy a variable return; if the Company exercises the decision-

making power as the principal responsible person the Company shall be deemed to use the power of the investee to

affect the return amount. The scope of the merger includes the Company and all of its subsidiaries. Subsidiary refers

to the subject controlled by the Company.The Company judges whether to control the investee on the basis of comprehensive consideration of all relevant facts

and circumstances. The relevant facts and conditions mainly include: the purpose of the establishment of the investee;

the relevant activities of the investee and how to make decisions on the relevant activities; whether the rights of the

Company enable the Company to dominate the relevant activities of the investee; whether the Company enjoys a

variable return by participating in the relevant activities of the investee; whether the Company has the ability to

influence the power of the investee; the relationship between the Company and the other parties etc. Once changes in

the relevant facts and circumstances lead to changes in the relevant elements involved in the above control definition

the Company will reevaluate them.

(2) Method of preparing the consolidated financial statements

From the date of acquiring the net assets of the subsidiary and the actual control right of production and operation

decisions the Company will begin to bring it into the merger scope and stop to do to so after the date of losing the

actual control right. For the subsidiaries under disposal the operating results and cash flow before the disposal date

have been appropriately included in the consolidated income statement and the consolidated cash flow statement; for

the current disposition subsidiaries the beginning of the consolidated balance sheet will not be adjusted. For

subsidiaries not under the same control the operating results and cash flow after the purchase date have been

appropriately included in the consolidated income statement and the consolidated cash flow statement and the initial

and comparative numbers of the consolidated financial statements will not be adjusted. For the subsidiaries increased

by the enterprise merger under the same control and the merged party under the absorption merger the operating

results and cash flow from the beginning of the current period to the merger date have been appropriately included in

the consolidated income statement and the consolidated cash flow statement and the comparison number of the

consolidated financial statements shall be adjusted at the same time.At the time of preparing the consolidated financial statements if the accounting policies or accounting periods

adopted by the subsidiary is inconsistent with that adopted by the Company necessary adjustments to the financial

statements of the subsidiary shall be made in accordance with the accounting policies and accounting periods of the

Company. For subsidiaries not acquired under the same control their financial statements shall be adjusted on the

basis of the fair value of identifiable net assets on the purchase date.All significant transaction balances transactions and outstanding profits within the Company should be offset by the

preparation of the consolidated financial statements.The shareholders' equity and the net profit and loss of the current period that are not owned by the Company should

be listed separately as the minority shareholders' equity and the minority shareholders' profit and loss under the

shareholders' equity and net profit in the consolidated financial statements. The share of the current net profit and

loss of the subsidiary belonging to the minority shareholders' equity shall be listed in the item of "minority

shareholders' profit and loss" under the net profit items in the consolidated profit statement. The loss of the

subsidiary shared by the minority shareholders exceeds the share of the minority shareholders 'equity of the subsidiary

at the beginning of the period and the number of the shareholders' equity is still reduced.

74Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

When the control of the original subsidiary is lost due to the disposal of some equity investment or other reasons the

remaining equity shall be remeasured according to its fair value on the date of the loss of control. The sum of the

consideration obtained from the disposal of the shares and the fair value of the remaining shares after deducting the

share of the net assets of the original subsidiary calculated from the purchase date shall be included in the investment

income of the period of the loss of control. For other comprehensive income related to the equity investment of the

original subsidiary the accounting treatment of control shall be lost on the same basis as the direct disposal of the

relevant assets or liabilities of the subsidiary. Subsequently the remaining equity shall be measured in accordance with

the Accounting Standards for Business Enterprises No.2 —— Long-term Equity Investment or Accounting

Standards for Business Enterprises No.22 —— Recognition and Measurement of Financial Instruments and other

relevant provisions see NoteⅣ and 14 "Long-term Equity Investment" or NoteⅣ and 10 "Financial Instruments".If the Company disposed of the equity investment in the subsidiary until the loss of control through multiple

transactions it is necessary to distinguish whether the transaction of the equity investment until the loss of control is a

package transaction. If the terms conditions and economic impact of the disposal of subsidiary equity investments

meet one or more of the following circumstances usually indicating that those multiple transactions should be treated

as package transactions:

1 These transactions are made simultaneously or made in consideration of mutual influence;

2 These deals as a whole can achieve a complete business result;

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

4 One trade is uneconomical but it is economic when considered together with other trades.

For each transaction that does not belong to the package transaction according to the circumstances the principle of

"partial disposal of long-term equity investment of subsidiaries without losing control" (see NoteⅣ14 "long-term

equity investment" (2)* ) and "loss of control of the disposal of the original subsidiary" (see the preceding paragraph)

should be applied in the accounting treatment. If the transaction of the subsidiary equity investment until the loss of

control is a package transaction the transaction shall be treated as a transaction of the disposal of the subsidiary and

losing the control; however the difference between the disposal price and the share of the net assets of the subsidiary

before the loss of control should be recognized as other comprehensive income in the consolidated financial

statements and the profit and loss of the period of the loss of control.

7． Classification of joint venture arrangement and accounting treatment methods for joint operation

Joint venture arrangement means an arrangement under the joint control of two or more parties. The Company shall

according to the rights and obligations enjoyed in the joint venture arrangement divide the joint venture arrangement

into joint operation and joint company. Joint operation means the joint venture arrangement in which the Company

enjoys the relevant assets of the arrangement and assumes the liabilities related to the arrangement. Joint company

means a joint venture arrangement in which the Company only enjoys rights to the net assets of the arrangement.The company's investment in joint venture shall be calculated by equity method which shall be treated in accordance

with the accounting policies described in NoteⅣ14 "Long-term Equity Investment" (2)* "Long-term equity

investment calculated by equity method".The Company as the joint venture recognizes the assets held by the Company the liabilities and the liabilities held by

75Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

the shares of the Company and the liabilities held by the Company. Recognize the income generated by the sale of the

share of the output incurred by the Company and the expenses incurred by the Company in accordance with the

share of the Company.When the Company invests or sells assets as the joint venture (the assets do not constitute business the same should

be applied below) or purchases assets from the joint venture prior to the sale of such assets to a third party the

Company recognizes only the portion of the profit or loss arising from the transaction attributable to other

participants in the joint venture. For the asset impairment loss in accordance with the Accounting Standards for

Business Enterprises No.8 —— Asset Impairment the Company shall recognize the loss for the assets that the

Company purchased the assets the Company shall recognize the loss according to the share borne by itself.

8． Standards for determining cash and cash equivalents

Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to

investments held by the company with a short term (generally due within three months from the purchase date)

which are highly liquid easy to be converted into a known amount of cash and with little risk of change in value.

9． Foreign currency business and foreign currency statement translation

(1) The method for determining the exchange rate when foreign currency transactions occur

When a foreign currency transaction is initially recognized the approximate spot exchange rate on the day of the

transaction is used to convert the amount into RMB.

(2) On the balance sheet date foreign currency currency items and foreign currency non-currency items shall be

treated in the following methods:

* Foreign currency currency items shall be converted through the central parity rate of RMB foreign exchange price

published by the People's Bank of China on the balance sheet date. The exchange difference caused from the

difference between the spot exchange rate on the balance sheet date and the initial recognition date or the previous

balance sheet date shall be included in the current profit and loss.* Foreign currency non-monetary items measured at historical cost shall still be converted at the spot exchange rate

on the date of the transaction without changing the bookkeeping standard amount; foreign currency non-monetary

items measured at fair value shall be converted at the spot exchange rate on the date of fair value; the difference

between the original bookkeeping standard amount shall be treated as the change of fair value (including change in

exchange rate) and be included into the current profit and loss or other comprehensive income according to the

nature of the non-monetary items.Monetary items refer to the monetary funds held by the Company and the assets or liabilities to be collected in a fixed

or definite amount.Non-monetary items refer to items other than monetary items.

(3) Conversion method of foreign currency financial statements of overseas operating entities:

* The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date

and the owner's equity items except the "undistributed profit" shall be converted at the spot exchange rate at the time

76Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

of occurrence;

* The income and expense items in the income statement shall be converted at the exchange rate similar* The

conversion difference in the foreign currency financial statements generated from the above* and* conversion

shall be listed separately under the owner's equity items in the balance sheet.to the spot exchange rate on the date of

the transaction;

* The financial statements of overseas operations in hyperinflation economy shall be converted in the following

methods:

Restate the balance sheet items by using the general price index and restate the income statement items by using the

general price index changes then convert at the spot rate at the latest balance sheet date.When the overseas operation is no longer in the hyperinflation economy the restatement shall be stopped and the

financial statements reconverted according to the price level on the date of cessation.* In the disposal of overseas operations the Company shall convert the difference between the foreign currency

financial statements related to the owner equity items of the balance sheet for the current disposal of overseas

operations the conversion difference of the foreign currency financial statements of the disposal portion shall be

calculated at the proportion of the disposal and transferred to the profit and loss of the current disposal.

10．Financial instrument

The financial instrument means a contract that forms the financial assets of one party and forms the financial liabilities

or equity instruments of the other party. When the Company becomes a party to the financial instrument contract it

recognize the relevant financial assets or financial liabilities.

(1) Financial Assets

1 Classification and the initial measurement

According to the business model of managing financial assets and the contractual cash flow characteristics of financial

assets the Company divides the financial assets into:

1) Financial assets measured at an amortized cost

The Company manages the business model of financial assets measured at amortized cost and the contract cash flow

characteristic of such financial assets is consistent with the basic lending arrangement that is the cash flow generated

on a specific date is only the payment of the principal and the interest based on the outstanding principal amount. For

such financial assets the Company adopts the real interest rate method to conduct the follow-up measurement for the

amortized cost and the profit or loss generated by the amortization or impairment shall be recorded in the current

profit and loss.

2) Financial assets measured at fair value and whose changes are included in other comprehensive income

The business model of the Company for managing such financial assets is to target both collecting and selling of the

contractual cash flow and the contractual cash flow characteristics of such financial assets are consistent with the

basic lending arrangement. The Company measures such financial assets at fair value and their changes are included in

other comprehensive income but the impairment losses or gains exchange gains and losses and interest income

calculated in accordance with the real interest rate method are included in the current profits and losses.among:

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<1> Debt instrument investment measured at fair value and whose changes are included in other c Subsequent

measurement should be performed at fair value. Interest rates impairment losses or gains and exchange gains and

losses calculated by the real interest rate method shall be included in the current profits and losses while other gains

or losses shall be included in other comprehensive gains. Upon the termination of recognition the accumulated gains

or losses previously included in other comprehensive income shall be transferred from other comprehensive income

and recorded in the current profit and loss.

<2> Equity instrument investment measured at fair value and whose changes are included in other comprehensive

income

Subsequent measurement should be performed at fair value. The dividends obtained (except for the part of the

investment cost recovery) shall be included in the current profit and loss and other gains or losses shall be included in

other comprehensive income. Upon the termination of recognition the accumulated gains or losses previously

included in other comprehensive income shall be transferred from other comprehensive income and included in the

retained earnings.For non-trading equity instrument investments the Company may upon initial recognition irrevocably designate

them as a financial asset measured at fair value and its changes included in other comprehensive income. The

designation is made on the basis of a single investment and the relevant investment meets the definition of the equity

instrument from the perspective of the issuer.

3) Financial assets measured at fair value and whose changes are included in the current profit and loss.

The Company classifies the above financial assets measured at amortized cost and the financial assets measured at fair

value and whose changes are included in other comprehensive income as the financial assets measured at fair value

and whose changes are included in the current profit and loss. In addition at the initial recognition in order to

eliminate or significantly reduce the accounting mismatch the Company designated some financial assets as financial

assets measured at fair value and their changes are included in the current profit and loss. For such financial assets the

Company adopts the fair value for subsequent measurement and the change in the fair value is included in the current

profit and loss.The investment in equity instruments over which the Company has no control joint control and significant influence

will be measured at fair value and its changes will be included in current profit or loss and listed as trading financial

assets; Those expected to hold for more than one year from the balance sheet date are listed as other non-current

financial assets.Financial assets are measured at fair value at the initial recognition. For financial assets measured at fair value and

whose changes are included in the current profit and loss relevant transaction expenses are directly included in the

current profit and loss; for other categories of financial assets relevant transaction expenses are included in the initial

recognition amount. For accounts receivable or notes receivable arising from the sale of products or the provision of

services that do not include or do not take into account the significant financing components the amount of

consideration that the Company is expected to be entitled to collect shall be the initial recognition amount.

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4) Equity instrument

An equity instrument is a contract that demonstrates ownership of the remaining interest in the assets excluding all

liabilities. The company's issuance (including refinancing) repurchase sale or cancellation of equity instruments shall

be treated as changes in equity and the transaction expenses related to equity transactions shall be deducted from the

equity. The Company does not recognize the change in the fair value of the equity instruments.During the duration of the Company (including the "interest" generated by the "instruments" classified as "equity

instruments") it shall be treated as profit distribution.

2 Impairment of financial assets

1) Method of recognition of the impairment provision

On the basis of expected credit loss the Company makes impairment provision and confirms the applicable expected

credit loss measurement method (general method or simplified method).Credit loss refers to the difference between all the contractual cash flows receivable under the contract and all the

expected cash flows collected i. e. the present value of the total cash shortage. Among them for the financial assets

purchased or derived with credit impairment the Company shall discount the actual interest rate of the financial assets.The general method of measuring expected credit loss refers to measuring whether the credit risk of the financial

assets (including contract assets and other applicable items the same below) assessed by the Company on the balance

sheet date has increased significantly since the initial confirmation the Company measures the loss preparation

according to the amount equivalent to the expected credit loss in the whole duration; if the credit risk does not

increase significantly after the initial confirmation the Company measures the loss preparation according to the

amount equivalent to the expected credit loss in the next 12 months. For the financial assets purchased or derived

with credit impairment the Company shall only recognize the cumulative changes of the expected credit loss during

the initial period on the balance sheet date. The Company considers all reasonable and grounded information

including forward-looking information when assessing expected credit losses.For receivables and contractual assets that are formed from transactions regulated by Accounting Standard for

Business Enterprises No. 14 - Revenue and do not have a significant financing component or that the Company does

not take into account the financing component of contracts not exceeding one year the Company uses a simplified

measurement method to measure the loss provision in terms of the amount of expected credit losses over the entire

duration.For financial assets other than the above measurement methods the Company assess whether its credit risk has

significantly increased since the initial recognition. If the credit risk has significantly increased since the initial

confirmation the Company measures the loss provision according to the amount of the expected credit loss in the

entire duration; if the credit risk does not increase significantly after the initial confirmation the Company measures

the loss provision according to the amount of the expected credit loss in the next 12 months.The Company uses available reasonable and warranted information including forward-looking information to

compare the risk of default of the financial instrument on the balance sheet date with the risk of default on the initial

recognition date to determine whether the credit risk of the financial instrument has increased significantly since the

initial confirmation.

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On the balance sheet date if the Company determines that the financial instrument only has a low credit risk it is

assumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.The Company evaluates expected credit risk and measures expected credit losses on the basis of a single financial

instrument or portfolio of financial instruments. When based on a combination of financial instruments the Company

divides financial instruments into different combinations based on common risk characteristics.The Company re-measures the expected credit loss on each balance sheet date and the increase or reversal of the loss

provision will be recorded as impairment loss or gains. For the financial assets measured at amortized cost the loss

provision shall offset the book value of the financial assets listed in the balance sheet; for the debt investment

measured at fair value and its changes included in other comprehensive income the Company confirms the loss

provision in other comprehensive income which does not offset the book value of the financial assets.

2) The criterion of whether credit risk increases significantly after initial confirmation

If the default probability of a financial asset within the expected duration determined on the balance sheet date is

significantly higher than the default probability determined during the expected duration determined at the initial

confirmation it indicates that the credit risk of the financial asset is significantly increased. Except in special

circumstances the Company should use the change of the default risk in the next 12 months as a reasonable estimate

of the change of the default risk during the entire duration to determine whether the credit risk increases significantly

after the initial confirmation.

3) A portfolio approach to assessing expected credit risk on a portfolio basis

The Company evaluates credit risks for individual financial assets with significantly different credit risks such as

receivables of relevant parties receivables for matters in dispute with the other side or matters involved in litigation or

arbitration and receivables where the debtor is likely to fail to fulfill repayment obligations.In addition to individual financial assets that assess credit risk the Company divides financial assets into different

groups based on common risk characteristics and evaluates credit risk on the basis of a portfolio.

4) Accounting treatment method for the impairment of financial assets

At the end of the period the Company calculates the estimated credit loss of various financial assets if the estimated

credit loss is greater than the book amount of the current impairment provision the difference should be recognized

as an impairment loss; if it is less than the current impairment provision the difference should be recognized as an

impairment gain.

5) Determination method of credit loss of various financial assets

The company needs to confirm the impairment loss of financial assets measured by amortized cost of financial assets

debt instruments measured at fair value and whose changes are included in other comprehensive incomes as well as

lease receivables mainly including notes receivable accounts receivable receivables financing other receivables

creditor's rights investment other creditor's rights investment long-term receivables etc. In addition for the contract

assets and part of the financial guarantee contracts impairment provisions and credit impairment losses are confirmed

in accordance with the accounting policies described in this part.

<1> The account for receivables and contract assets for expected credit losses based on a combination of credit risk

characteristics

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Consolidation category Basis for confirming theconsolidation Method of measuring expected credit losses

Bank acceptance bill receivable With reference to the historical credit loss experience

combined with the current situation and the forecast of the

Bill type future economic situation the expected credit loss should be

Trade acceptance receivable calculated through the default risk exposure and the expected

credit loss rate of the whole duration

With reference to the historical experience of credit loss and

Receivable-Account receivable age combined with the current situation and the forecast of the

portfolio Account receivable age future economic situation the comparison table between theContract asset - Account receivable age age of accounts receivable and the expected credit loss rate of

Portfolio the whole duration is prepared to calculate the expected credit

loss

Accounts receivable —— consolidated Based on historical credit loss experience current conditions

related parties portfolio Scope of merger and expected future economic conditions

With reference to the historical credit loss experience

combined with the current situation and the forecast of the

Other receivables - Account receivable Account receivable age future economic situation prepare the comparison table ofage portfolio other receivables age and the expected credit loss rate and

calculate the expected credit loss rate in the next 12 months or

the whole duration

Other receivables - consolidated The allowance for bad debts is measured with reference to

related parties portfolio Scope of merger historical credit loss experience combined with currentconditions and expectations of future economic conditions

<2> Aging combination of aging and expected credit loss ratio comparison table

Account receivable age Expected credit loss rate of accounts Expected credit loss rate of other

receivable receivables

Within 6 months 5.00% 5.00%

Six months to a year 10.00% 10.00%

1 to 2 years 30.00% 30.00%

2 to 3 years 50.00% 50.00%

More than 3 years 100.00% 100.00%

The age of accounts for the self-examination of accounts receivable and other receivables contracts starts from the

month when the payment actually occurs.For the receivables and contract assets formed by the transactions regulated by the Accounting Standards for Business

Enterprises No.14 —— Income the Company uses the simplified measurement method to measure the loss

preparation according to the amount equivalent to the expected credit loss within the entire duration.For leasing receivables by the accounting standards for enterprises no. 14 —— income specification of transaction

formation and without significant financing components or the company does not consider not more than a year of

financing receivables and contract assets of the contract the company using the simplified measurement method

according to the entire duration of expected credit loss amount measurement loss.For notes receivable and debt receivables measured at fair value and whose changes are included in other

comprehensive income if the maturity period is within one year (including one year from the initial confirmation date)

they shall be reported as receivables financing. The Company measures the impairment loss by using the amount of

the expected credit loss of the entire duration.Debt investment is mainly accounted for by bond investment measured at amortized cost. The Company measures

the impairment loss in the amount equivalent to the expected credit loss within the next 12 months or for the entire

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duration based on whether its credit risk has increased significantly since the initial recognition.Other creditor's rights investments shall be mainly accounted for bond investment measured at fair value and whose

changes are included in other comprehensive income. Financing of receivables with a maturity period of more than

one year from the initial confirmation date shall also be reported as other creditor's rights investments. For other debt

investments (including receivables listed in other debt investments) the Company shall measure the impairment loss

by using the amount equivalent to the expected credit loss within the next 12 months or the entire duration based on

whether its credit risk has increased significantly after the initial confirmation. For receivables financing that does not

include major financing components the Company measures the loss preparation according to the expected amount

of credit loss equivalent to the entire duration.

<3> The criteria for the identification of receivables and contract assets for the provision of expected credit losses on

a single basis

For receivables and contract assets whose credit risk is significantly different from combined credit risk the Company

shall draw expected credit losses according a single item.

3 Confirmation basis and measurement method for terminating the transfer of financial assets

If the financial assets meet one of the following conditions the recognition of them shall be terminated:

1) Termination of the contractual right to collect the cash flow of the financial assets;

2) The financial assets have been transferred and the Company transfers almost all the risks and rewards in the

ownership of the financial assets to the transferred party;

3) The financial asset has been transferred. Although the Company has neither transferred nor retained almost all the

risks and rewards in the ownership of the financial asset it has abandoned the control of the financial asset.Upon the confirmation termination of the investment of other equity instruments the difference between the book

value and the consideration received and the sum of the fair value directly recorded in other comprehensive income

shall be included in the retained earnings and the book value of the remaining financial assets and the sum of the fair

value directly recorded in other comprehensive income shall be included in the current profit and loss.If the Company has neither transferred nor retained almost all the risks and rewards in the ownership of the financial

assets and has not abandoned the control over the financial assets the relevant financial assets shall be recognized

according to the extent of the transferred financial assets and the relevant liabilities shall be recognized accordingly.The degree to which the continued involvement of the transferred financial assets is involved refers to the risk level

faced by the enterprise caused by the change in the value of the financial assets.If the overall transfer of financial assets meets the conditions for termination of recognition the difference between

the book value of the transferred financial assets and the sum between the sum of the consideration received from the

transfer and the fair value change originally included in other comprehensive income shall be included in the current

profit and loss.If the partial transfer of the financial assets meets the conditions of termination of recognition the book value of the

transferred financial assets shall be apportioned according to the relative fair value between the fair value of the

transfer and the sum of the sum of the transfer of the transfer shall be included into the current profit and loss.For the financial assets sold by recourse or the endorsement transfer of the held financial assets the Company needs

to determine whether almost all the risks and rewards in the ownership of the financial assets have been transferred. If

almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferred party

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the recognition of the financial asset should be terminated; if the financial asset retains the ownership of the financial

asset and almost all the risks and rewards in the ownership of the financial asset the recognition of the financial asset

should not be terminated if there is no transfer nor retention of almost all the risks and remuneration in the

ownership of the financial asset the company shall continue to judge whether the enterprise has retained the control

of the asset and conduct treatment according to the principles described in the preceding paragraphs.

4 Cancel after verification

If the Company no longer reasonably expects that the contractual cash flow of the financial asset can be recovered in

whole or in part the book balance of the financial asset will be written down directly. This write-down constitutes the

termination of recognition of the relevant financial assets. This usually occurs when the Company determines that the

debtor has no assets or sources of income to generate sufficient cash flow to repay the amount that will be written

down. However the financial assets under the Company may allow the process to be affected by the execution

activities.If the write-down financial assets are recovered later they shall be transferred back as impairment losses and recorded

into the profits and losses of the current period.

(2) Financial liabilities

Financial liabilities are classified at the initial recognition as financial liabilities measured at amortized cost and financial

liabilities measured at fair value and whose changes are included in the current profits and losses.In addition to the following the Company classifies financial liabilities as financial liabilities measured at amortized

cost costs:

* Financial liabilities measured at fair value and whose changes are included in current profits and losses include

transactional financial liabilities (including derivatives of financial liabilities) and financial liabilities designated as

measured at fair value and whose changes are included in current profits and losses.* The transfer of financial assets does not meet the conditions for termination of recognition or continues to be

involved in the transferred financial assets.* The financial guarantee contract not subject to Item* or* of this Article and a loan commitment at a below

market rate that is not subject to Item* of this Article. In a business merger not under the same control if the

contingent consideration recognized by the Company as the acquirer forms the financial liabilities the financial

liabilities should be measured at fair value and the changes should be included in the profit and loss of the current

period.At the time of initial recognition in order to provide more relevant accounting information the Company may

designate financial liabilities measured at fair value and recorded in the profit and loss of the current period which

meets one of the following conditions:

1) Eliminate or significantly reduce accounting mismatch.

2) Manage and evaluate the performance of a portfolio of financial liabilities or a portfolio of financial assets and

financial liabilities on a fair value basis in accordance with the corporate risk management or investment strategy set

out in formal written documents and report internally to key management on that basis. Such designation once made

cannot be revoked.

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The financial liabilities of the Company are mainly financial liabilities measured at amortized cost including notes

payable and accounts payable other payables borrowings and bonds payable etc. Such financial liabilities are initially

measured according to the fair value after deducting transaction expenses and subsequently measured by the real

interest rate method. If the term is less than one year (including one year) it should be listed as current liabilities; if the

term is more than one year but is due within one year (including one year) from the balance sheet date it should be

listed as non-current liabilities due within one year; the rest are listed as non-current liabilities.When the current obligation of the financial liability has been discharged in whole or in part the Company terminate

the recognition of the part of the financial liability or discharged obligation. The difference between the book value of

the terminated part and the consideration paid shall be included in the current profit and loss.If the current obligation of the financial liability (or a part of it) has been discharged the Company shall terminate the

recognition of the financial liability (or such a part of the financial liability).

(3) Determination of fair value of financial instruments

For financial instruments with active market the fair value should be determined by the quotation in the active market.For financial instruments with no active market the valuation techniques should be used to determine their fair value.The company divides the input values used by the valuation technology at the following levels and uses them

successively:

* The first level of input value is an unadjusted offer of the same assets or liabilities in the active market that can be

obtained on the measurement date;

* The second level of input value is the input value directly or indirectly visible besides the first level of input value

including: the quotation of similar assets or liabilities in the active market; the quotation of the same or similar assets

or liabilities in the nonactive market; the other observable input value other than the quotation such as the interest

rate and yield curve observable during the normal quotation interval; the input value of market verification etc.;

* The third level of input value is the unobservable input value of the relevant assets or liabilities including interest

rates that cannot be directly observed or cannot be verified by observable market data stock volatility future cash

flow of abandonment obligations in business mergers financial forecasts made using their own data etc.

(4) Follow-up measurement

After the initial recognition the Company shall measure different categories of financial assets at amortized cost fair

value and their changes in other comprehensive income or fair value and their changes in the current profit and loss.After the initial recognition the Company shall measure different categories of financial liabilities at amortized cost

fair value and changes in the current profit or loss or by other appropriate methods.The amortized cost of a financial asset or financial liability is determined by the initial recognized amount of the

financial asset or financial liability after the following adjustments:

* Deduct the repaid principal.* Add or subtract the cumulative amortization amount formed by amortifying the difference between the initial

recognized amount and the due date amount by the effective interest rate method.* Excluding accumulated losses (only for financial assets).The Company recognizes the interest income in accordance with the real interest rate method. Interest income should

84Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

be calculated from the book balance of financial assets multiplied by the effective interest rate unless:

1) For the financial assets purchased or derived with credit impairment the Company shall determine the interest

income according to the amortized cost of the amortized assets and the actual interest rate of the financial assets.

2) For the purchased or generated financial assets that have no credit impairment but become credit impairment in the

subsequent period the Company shall determine the interest income according to the amortized cost and actual

interest rate of the financial assets in the subsequent period. If the Company uses the real interest rate method to

calculate the credit impairment in the subsequent period and the improvement can be objectively related to an event

occurring after the application of the above policy (if the credit rating of the debtor's credit rating is raised) the

Company transfers the real interest rate multiplied by the book balance of the financial assets.

11．Inventory

(1) Classification of inventory

Inventory includes raw materials work-in-process semi-finished products finished goods merchandise inventory

consumable materials data resources etc.Contract performance costs with an amortization period of no more than

one year or one operating cycle are also presented as inventory. (For "Contract Performance Cost" see NoteⅣ 28

and "Contract Acquisition Cost and Contract Performance Cost".)

(2) Method of valuation of issued issued

The inventory should be priced on the weighted average basis when issued.

(3) The basis for determining the net realizable value of inventory and the withdrawal method for inventory

depreciation reserve

On the balance sheet date the inventory shall be measured according to the lower cost and the net realizable value. If

the inventory cost is higher than its net realizable value the provision for inventory depreciation shall be withdrawn

and recorded into the current profit and loss. Net realizable value refers to the amount after the estimated selling price

of inventory minus the estimated cost estimated sales expenses and related taxes at completion.The net realizable value of various inventories is determined as follows:

* The inventory of goods directly used for sale such as finished products goods and materials used for sale shall in

the normal process of production and operation determine the net realizable value after the estimated selling price of

the inventory minus the estimated sales expenses and relevant taxes.* For the inventory of materials to be processed its net realizable value is determined in the normal course of

production and operation by the estimated selling price of the finished products produced less the estimated cost to

be incurred at the time of completion estimated selling expenses and related taxes.* On the balance sheet date if one part of the same inventory has the contract price without the other part the net

realizable value shall be determined respectively and compared with the corresponding cost the amount of the

withdrawal or reversal of the inventory depreciation provision shall be determined respectively.Inventory depreciation provision shall be made according to a single inventory item (or inventory category) and

inventory depreciation provision shall be related to the same or similar product series produced or sold in the same

region and is difficult to be measured separately from other items.

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(4) Inventory system

The inventory system adopts the perpetual inventory system.

(5) The amortization method of low-value consumables and packaging

The low-value consumables are amortized by 50-50.

12．Contract assets

Contract assets refer to the right to receive consideration from customers for goods transferred provided that such

right is subject to factors other than the passage of time.Where the Company sells two distinct goods to a customer

and has the right to receive consideration due to delivery of one good but such right is still subject to delivery of the

other good the right to receive consideration shall be recognized as a contract asset.Contract assets and contract

liabilities under the same contract are presented on a net basis while those under different contracts are not offset.The specific determination method and accounting treatment of expected credit losses on contract assets are

presented in “Note IV 10 Financial Instruments”.

13．Holding assets for sale or disposal group

(1) Non-current assets held for sale or disposal group recognition criteria

If the Company recovers its book value primarily by sale (including the exchange of non-monetary assets with

commercial substance the same below) rather than the continuous use of a non-current asset or disposal group it

should be categorized under “held for sale”. The specific criteria shall simultaneously meet the following conditions:

* According to the practice of selling such assets or disposal groups in similar transactions they can be sold

immediately under current conditions;

* The sale is most likely where the company has made a resolution on a sale plan and obtained a definite purchase

commitment and the sale is expected to be completed within a year.Among them the disposal group is a group of assets disposed of as a whole by sale or other method in a transaction

and the liabilities directly related to those assets transferred in the transaction. Where the asset group or asset group

portfolio of the disposal group shares the goodwill acquired in the enterprise merger in accordance with the

Accounting Standards for Business Enterprises No.8-Asset Impairment the disposal group shall include the goodwill

allocated to the disposal group.

(2) Accounting treatment methods

If the carrying value of non-current assets held for sale and disposal group is higher than the net amount after using

the fair value minus disposal expense when the initial measurement or remeasurement is made at the balance sheet

date the carrying value should be written down to the net amount after using the fair value minus the disposal

expense and the amount written down should be recognized as asset impairment loss and included in current profit

or loss and the impairment provision for assets held for sale should also be made. For the disposal group the

confirmed asset impairment loss first offset the carrying value of goodwill in the disposal group and then offset the

book value of the non-current assets stipulated in the accounting Standards for Business Enterprises No.42- -Non-

current Assets held for Sale Disposal Group and Terminated Operation (hereinafter referred to as the "Standards for

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Holding for Sale" in the disposal group). After deducting the selling expense if the net amount of the fair value of the

disposal group held for sale increased on the subsequent balance sheet date the amount previously written down shall

be restored and reversed within the amount of asset impairment loss recognized in the non-current assets as

prescribed by the held for sale standard after being classified into the holding for sale category the carry-back amount

is recognised in profit or loss for the current period and its carrying value is increased in proportion to the carrying

value of each non-current asset in the disposal group as measured by the applicable hold-for-sale criteria other than

goodwill; The carrying value of goodwill that has been written off as well as the asset impairment losses recognized

prior to classifying non-current assets as held for sale under the applicable holding for sale measurement criteria

cannot be rolled back.There is no depreciation or amortization of the non-current assets held for sale or the non-current assets in the

disposal group and the interest and other expenses of the liabilities in the disposal group held for sale continue to be

recognized.If the non-current assets or disposal group no longer meets the requirements of the held for sale category it will not

continue to divide the held for sale category or remove the non-current assets from the disposal group held for sale

and measure below:

* The book value before the held for sale category the amount adjusted for depreciation amortization or

impairment assumed not to be recognized in the held for sale category;

* Recoverable amount.

(3) Termination of operation

Termination of operations is a component of ownership that is separate and has been disposed of or classified by the

Company under one of the following conditions:

* The component represents an independent main business or a separate main operating area;

* This component is part of a plan associated with the disposition of a separate principal business or a separate main

business area of operation;

* The component is a subsidiary acquired exclusively for resale.The Company shall separately report the profit and loss of terminated operation in the income statement and the

impairment loss and loss amount of terminated operation and loss shall be presented as the profit and loss of

terminated operation.

14．Long-term equity investment

The long-term equity investment mentioned in this part refers to the long-term equity investment that the Company

has the control joint control or significant influence on the invested unit. The Company has no control joint control

or significant influence of the invested unit as a financial assets accounting measured at fair value and included in the

current profits and losses. If the changes is non-tradable the Company may choose to designate it as financial assets

accounting measured at fair value and whose changes are included in other comprehensive income. The accounting

policies are detailed in Note IV and 10 "Financial Instruments".Joint control means the common control of the Company over an arrangement in accordance with the relevant

agreement and the relevant activities of the arrangement must be decided after the unanimous consent of the

participants who share the control right. Significant impact means that the Company has the right to participate in the

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decision-making of the financial and operational policies of the investee but is unable to control or jointly control the

formulation of these policies together with other parties.

(1) Determination of the investment cost

For the long-term equity investment acquired by the enterprise merger under the same control the initial investment

cost of the long-term equity investment shall be based on the merger date of the share of the book value of the

incorporated party in the consolidated financial statements of the final controlling party. The difference between the

initial investment cost of the long-term equity investment and the cash paid the transferred non-cash assets and the

book value of the debts undertaken shall adjust the capital reserves; if the capital reserve is insufficient the retained

earnings shall be adjusted. If the issue of equity securities is taken as the merger consideration the capital reserves

shall be adjusted on the basis of the share of the shareholders' equity of the merged party in the consolidated financial

statements of the final controlling party as the initial investment cost of the long-term equity investment and the total

face value of the issued shares as equity and the difference between the initial investment cost of the long-term equity

investment and the total face value of the issued shares; if the capital reserve is insufficient to offset the retained

earnings shall be adjusted. If the equity of the merged party under the same control is acquired through multiple

transactions step by step and the enterprise merger under the same control whether it is a "package transaction"

respectively: for a "package transaction" each transaction shall be treated as a transaction that obtains control right. If

it does not belong to the "package transaction" the capital reserves shall be adjusted on the merger date according to

the sum of the book value of the equity of the shares of the final controller and the initial investment cost of the book

value before the merger date; if the capital reserve is insufficient the retained earnings shall be adjusted. The equity

investment held by the equity method before the merger date or recognized as financial assets measured at fair value

and whose changes are included in other comprehensive income shall not be accounted for for the time being.For the long-term equity investment acquired by the enterprise merger not under the same control the merger cost

shall be taken as the initial investment cost of the long-term equity investment on the purchase date and the merger

cost includes the sum of the assets paid by the acquirer the liabilities incurred or assumed and the equity securities

issued. If the equity of the acquirer is acquired step by step through multiple transactions and the enterprise merger is

not under the same control it shall be treated whether it belongs to the "package transaction" respectively: for the

"package transaction" each transaction shall be treated as a transaction acquiring control. If it does not belong to the

"package transaction" the sum of the book value of the equity investment of the original acquiree plus the new

investment cost shall be the initial investment cost of the long-term equity investment calculated according to the cost

method. If the equity originally held is accounted by the equity method the relevant other comprehensive income

shall not be treated for the time being.The fee of audit legal services evaluation and consulting and other related management matters incurred by the

consolidated party or the acquirer shall be recorded into the current profits and losses at the time of occurrence.Equity investments other than long-term equity investments formed by business mergers are initially measured at cost

which depends on the manner in which long-term equity investments are acquired. It is determined in accordance

with the actual cash purchase price paid by the Company the fair value of the equity securities issued by the Company

the value agreed in the investment contract or agreement the fair value or original book value of the assets exchanged

in the non-monetary asset exchange transaction and the fair value of the long-term equity investment itself. Fees

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taxes and other necessary expenses directly related to the acquisition of long-term equity investments are also included

in the cost of investment. For the additional investment that can exert a significant impact on the invested unit or

exercise joint control but does not constitute control the cost of long-term equity investment is the sum of the fair

value of the original equity investment plus the cost of the new investment determined in accordance with Accounting

Standard for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.

(2) Follow-up measurement and profit and loss recognition methods

The long-term equity investment with joint control (except the co-operator) or significant impact shall be accounted

by the equity method. In addition the Company's financial statements use the cost method to account for the long-

term equity investment that can be controlled by the invested unit.* Long-term equity investment calculated by the cost method

When the cost method is used the long-term equity investment is priced at the cost of the initial investment and the

cost of the additional or withdrawn investment is adjusted for the long-term equity investment. In addition to the cash

dividends or profits actually paid at the time of obtaining the investment or the cash dividends declared but not yet

paid included in the consideration the investment income of the current period shall be recognized in accordance

with the cash dividends or profits declared by the invested unit.* Long-term equity investment accounted for by the equity method

When using the equity method if the initial investment cost of a long-term equity investment is greater than the fair

value share of the investee's identifiable net assets when the investment is made the initial investment cost of the

long-term equity investment should not be adjusted; If the initial investment cost is less than the fair value share of the

identifiable net assets of the investee the difference should be included in the current profit or loss and the cost of

long-term equity investment should be adjusted at the same time.When using the equity method the investment income and other comprehensive income shall be confirmed according

to the share of the book value of the invested unit; the value and the book value of the long-term equity investment

shall be adjusted according to the profit or cash dividend of the long-term equity investment and included in the

capital reserve. When recognizing the share of the net profit and loss of the invested entity the net profit of the

invested entity shall be adjusted on the basis of the fair value of the identifiable assets of the invested entity at the time

of obtaining the investment. If the accounting policies and accounting periods adopted by the invested entity are

inconsistent with the Company the financial statements of the invested entity shall be adjusted in accordance with the

accounting policies and accounting periods of the Company and the investment income and other comprehensive

income shall be confirmed. For the transactions between the Company and the joint venture if the assets invested or

sold do not constitute business the unrealized internal transaction gains and losses shall be offset by the Company

and the investment gains and losses shall be recognized. However the unrealized internal transaction loss incurred by

the Company and the invested entity belongs to the impairment loss of the transferred assets and shall not be offset.If the assets invested by the Company into a joint venture or an associate constitute a business and the investor thus

obtains long-term equity investment but does not acquire control the fair value of the invested business shall be taken

as the initial investment cost of the new long-term equity investment and the difference between the initial investment

cost and the book value of the invested business shall be fully included in the current profit or loss. Where the assets

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sold by the Company to a joint venture or associate constitute a business the difference between the consideration

obtained and the carrying value of the business should be fully included in the current profit or loss. Where the assets

purchased by the Company from associates and joint ventures constitute business the accounting treatment shall be

carried out in accordance with the provisions of Accounting Standard for Business Enterprises No. 20 - Business

Combination and the gain or loss related to the transaction shall be fully recognized.When confirming the net loss incurred by the investee the book value of the long-term equity investment and the

other long-term equity that substantially constitute the net investment of the investee shall be written down to zero. In

addition if the Company has the obligation to bear additional losses to the investee the estimated liabilities shall be

recognized according to the expected obligations and included in the current investment losses. If the invested entity

achieves net profit in the following period the Company shall resume the recognized income share after the earnings

share makes up for the unrecognized loss share.* Acquisition of minority equity

At the time of preparing the consolidated financial statements the capital reserves shall be adjusted due to the

difference between the new long-term equity investment of the purchase of minority shares and the share of the net

assets continuously calculated by the subsidiary since the purchase date (or merger date). If the capital reserves are

insufficient to write down the retained earnings shall be adjusted.* Disposal of long-term equity investments

In the consolidated financial statements the parent company shall partially dispose of the long-term equity investment

of the subsidiary and the difference between the disposal price and the long-term equity investment of the subsidiary

and the disposal of the relevant accounting policies described in Note IV 6 "Judgment Standard for Control and

Preparation Method of Consolidated Financial Statements" (2).For the disposal of long-term equity investment under other circumstances the difference between the book value

and the actual obtained price shall be recorded in the current profit and loss.For the long-term equity investment calculated by the equity method if the remaining equity after disposal is still

calculated by the equity method the other comprehensive income parts originally included in the shareholders' equity

shall be treated on the same basis as the direct disposal of the related assets or liabilities of the invested unit in the

corresponding proportion. The owner's equity recognized due to the owner's equity other than the net profit and loss

other comprehensive income and profit distribution shall be transferred to the profit and loss of the current period.If a long-term equity investment is accounted for by the cost method and the remaining equity is still accounted for by

the cost method after disposal the other comprehensive income recognized by the equity method or financial

instrument recognition and measurement criteria before the acquisition of control of the investee shall be accounted

for on the same basis as the direct disposal of the relevant assets or liabilities by the investee. And carry forward the

current profit and loss pro rata; Changes in owners' equity other than net profit and loss other comprehensive income

and profit distribution in the net assets of investee units recognized as a result of the equity method of accounting are

carried forward to current profit and loss in proportion.If the Company loses control of the investee due to the disposal of part of the equity investment when preparing

individual financial statements the remaining equity after disposal can exercise common control or exert significant

influence on the investee it shall be calculated according to the equity method and when the remaining equity is

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regarded as self-acquired it shall be adjusted by the equity method. If the remaining equity after disposal cannot jointly

control or exert significant influence on the investee it shall be accounted for in accordance with the relevant

provisions of the Standards for the recognition and measurement of financial instruments and the difference between

the fair value and the carrying value on the date of loss of control shall be included in the current profit or loss. Other

comprehensive income recognised by the equity method or financial instrument recognition and measurement

standards before the Company acquired control of the investee shall be accounted for on the same basis as the direct

disposal of the relevant assets or liabilities by the investee when it loses control of the investee. Changes in owner's

equity other than net profit and loss other comprehensive income and profit distribution in the net assets of the

investee recognized by the equity method are transferred to current profit and loss when the control over the investee

is lost. Among them if the remaining equity after disposal is accounted for by the equity method other

comprehensive income and other owner's equity are carried forward in proportion; If the remaining equity after

disposal is changed to accounting treatment according to the recognition and measurement standards of financial

instruments other comprehensive income and other owners' equity are all carried forward.If the Company loses its joint control or significant impact on the invested unit due to the disposal of part of the

equity investment the remaining equity after disposal shall be calculated according to the financial instrument

recognition and measurement criteria and the difference between the fair value and the book value on the day of the

loss of joint control or significant impact shall be recorded into the current profit and loss. The original equity

investment due to the equity method and accounting confirmation of other comprehensive income in the termination

of the accounting of the basis of the same because of the investment except the net profit and loss other

comprehensive income and profit distribution of other owner's equity changes when the equity method all into the

current investment income.The Company will dispose of its equity investment in subsidiaries step by step through multiple transactions until it

loses control. If the above transactions are package transactions each transaction shall be accounted for as one

transaction disposing of the equity investment of subsidiaries and losing control and the difference between the

disposal price of each disposal and the book value of the long-term equity investment corresponding to the equity

disposed of before the loss of control shall be the difference between the disposal price and the long-term equity

investment corresponding to the equity disposed before the loss of control. First recognized as other comprehensive

income when the loss of control is transferred to the loss of control of the current period profit and loss.See NoteⅣ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method of

impairment provisions for long-term equity investment.

15．Investment real estate

The company's investment real estate refers to the real estate held for the purpose of earning rent or capital

appreciation or both including the land use right leased the land use right held and ready to be transferred after the

appreciation and the leased buildings. The investment real estate shall be initially measured according to the cost and

the cost model shall be adopted to subsequently measure the investment real estate or the fair value model on the

balance sheet date.

(1) Adopt the cost model

Investment real estate is depreciated or amortized by the following useful life and estimated net residual value rate:

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Name Service life Estimated net residual value Annual depreciation rate or

rate amortization rate

House and buildings 20-40 years 0%-10% 2.25%-5.00%

See NoteⅣ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method of investment

real estate impairment provisions using the cost model.

(2) Adopt the fair value model

Without depreciation or amortization of the investment real estate the book value shall be adjusted based on the fair

value of the investment real estate on the balance sheet date and the difference between the fair value and the original

book value shall be included in the current profit and loss.An investment property shall be derecognized on disposal or when it is permanently withdrawn from use and no

future economic benefits are expected from its disposal. Proceeds from the sale transfer retirement or destruction of

the investment property deducting its carrying amount and related taxes shall be recognized in profit or loss for the

current period.

16．Fixed assets

(1) Fixed assets recognition conditions

Fixed assets refer to tangible assets held for the production of goods providing labor services leasing or operation

and management and with a service life of more than one fiscal year. Fixed assets shall be confirmed if the following

conditions are met:

* Economic benefits related to this fixed asset are likely to flow into the enterprise;

* The cost of this fixed asset can be measured reliably.

(2) Various depreciation methods of fixed assets

All kinds of fixed assets adopt the straight line method and make depreciation according to the following useful life

estimated net residual value rate and depreciation rate:

Categories Depreciation method Service life Estimated net salvage rate Yearly depreciation rate

Houses and buildings straight-line depreciation 20-40 years 0%-10% 2.25%-5.00%

method

Ships and nets straight-line depreciation 5-30 years 3%-5% 3.17%-19.40%

method

Machinery equipment straight-line depreciation 8-20 years 0%-10% 4.50%-12.50%

method

Delivery equipment straight-line depreciation 5 years 0%-10% 18.00%-20.00%

method

Furniture and office straight-line depreciation 5 years 0%-10% 18.00%-20.00%

equipment method

(3) See NoteⅣ and 20 "Long-term asset impairment" for the impairment test method and the withdrawal method of

the impairment provisions of fixed assets.

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17．Construction in process

The cost of the project under construction shall be determined according to the actual project expenditure including

the project expenditure incurred during the period under construction the capitalized borrowing expenses before the

project reaches the predetermined usable state and other related expenses.The construction under construction is carried forward to fixed assets after reaching the predetermined usable state in

which the construction under construction is carried forward to fixed assets when delivered with fishing conditions

and the construction is carried forward to fixed assets when the physical construction (including installation) work has

been fully completed or has been substantially completed.See NoteⅣ and 20 "Long-term asset impairment" for the impairment test method and impairment provision method

of the construction under construction.

18．Borrowing costs

(1) If the loan expenses incurred by the Company can be directly attributed to the purchase construction or

production of the assets meeting the capitalization conditions they shall be capitalized and included in the relevant

asset costs. Assets that meet the capitalization conditions refer to the assets such as fixed assets investment real estate

and inventory that take a long time (usually one year or more) for purchase construction or production activities to

reach the predetermined marketable status. Other borrowing expenses shall be recognized as expenses according to

the amount of occurrence and shall be included in the current profits and losses. Borrowing expenses include

borrowing interest amortization of discount or premium auxiliary expenses and exchange difference due to foreign

currency borrowing etc.

(2) If the borrowing costs meet the following conditions the capitalization should begin:

* Asset expenditure has been incurred including the cash paid for the purchase construction or production of assets

that meet the conditions for capitalization the transfer of non-cash assets or the assumption of interest-bearing debts;

* Borrowing expenses have been incurred;

When the purchase construction or production of assets meeting the capitalization conditions reach the

predetermined usable or marketable status the borrowing expenses shall be capitalized.In case of the abnormal interruption of the assets for more than 3 consecutive months the capitalization of the

borrowing expenses shall be suspended. The borrowing expenses incurred during the interruption period are

recognized as expenses and recorded into the current profits and losses until the purchase and construction of the

assets or the production activities resume. If the interruption is due to the capitalization of the qualified assets

purchased or produced as necessary for the intended usable or marketable status the capitalization of the borrowing

costs continues.

(3) During the capitalization period the amount of interest (including amortization of discounts or premiums)

capitalized for each accounting period shall be determined as follows:

* Where a special loan is borrowed for the purpose of purchase construction or production of assets that meet the

conditions for capitalization the amount shall be determined by the interest expense actually incurred in the current

period minus the interest income of the unused borrowing funds deposited in the bank or the investment income

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obtained from temporary investment.* Where a general loan is occupied for the purpose of purchase construction or production of assets that meet the

conditions for capitalization the amount of interest on which the general loan shall be capitalized shall be calculated

and determined by multiplying the weighted average of the accumulated asset expenditure exceeding the special loan

by the capitalization rate of the general loan occupied. The capitalization rate is determined according to the weighted

average interest rate of general borrowing.Where there is a discount or premium for the loan the amount of discount or premium for each accounting period

shall be determined according to the actual interest rate method and the amount of interest for each period shall be

adjusted.During the capitalization period the amount of interest in each accounting period shall not exceed the amount of

interest actually incurred by relevant loans in the current period.

(4) The auxiliary expenses incurred by special loans which are incurred before the assets purchased built or produced

eligible for capitalization reach the predetermined usable or marketable state are capitalized according to the amount

incurred at the time of occurrence and are included in the cost of the assets eligible for capitalization; If an asset that is

purchased built or produced and eligible for capitalization has reached a predetermined usable or marketable state it

shall be recognized as an expense based on the amount incurred at the time of occurrence and recorded in the current

profit or loss. Auxiliary expenses incurred by general loans are recognized as expenses according to their amount at

the time of occurrence and are included in current profit or loss.

19．Intangible assets

(1) Intangible assets refer to the identifiable non-monetary assets owned or controlled by an enterprise without a

physical form. Intangible assets are initially measured according to the cost. Analyze and judge the service life of the

intangible assets when they are acquired.

(2) The Company generally determines the useful life of intangible assets:

* Information on the usual life cycle of the product produced with the asset;

* Technology process and other aspects of the current situation and the estimation of the future development trend;

* The market demand for the products or services produced with the asset;

* Action expected by current or potential competitors;

* Prospective maintenance expenditures to maintain the ability to bring economic benefits to the asset and the

Company's ability to expect to pay related expenditures;

* Relevant legal provisions or similar restrictions on the control period of the asset such as the concession period

lease term etc.;

* The correlation with the service life of other assets held by enterprises.If it is impossible to foresee the period of intangible assets to bring economic benefits to the Company it shall be

regarded as intangible assets with uncertain service life.

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(3) For intangible assets with limited service life the system shall amortize reasonably (or straight line method) during

the service life. At the end of each year the Company will review the service life and amortization methods of

intangible assets with limited service life. If the service life and amortization method of intangible assets are different

from the previous estimate the amortization period and amortization method will be changed. For the intangible

assets with limited service life the service life and the estimated net residual value rate of the intangible assets are as

follows:

Name Service life Judging basis Estimated net

of service life salvage rate

Land use right 42-49 years Term of land certificate 0%

Software 5-10 years Historical experience 0%

See NoteⅣ and 20 "Long-term asset Impairment" for the impairment test method and impairment provision

withdrawal method of intangible assets with limited service life.

(4) Intangible assets with uncertain service life include intangible assets that have been continued to be used after

amortization while intangible assets with uncertain service life shall not be amortized

(5) Internal research and development

1. Expenditure of internal research and development project including expenditure of research stage and development

stage including:

1) Research is an original planned survey for acquiring and understanding new scientific or technical knowledge.

2) Development refers to the application of research results or other knowledge to a plan or design to produce new or

substantially improved materials devices products etc.

2. Expenditures incurred during the research phase of internal research and development projects are recognized in

the current period's profit and loss; expenditures during the development phase that meet the following conditions are

recognized as intangible assets:

1) It is technically feasible to complete the intangible assets to use or sell them;

2) Having the intention to complete the intangible assets and use or sell them;

3) The ways in which the intangible assets generate economic benefits including proving that the products produced

with the intangible assets exist in the market or that the intangible assets themselves exist in the market and that the

intangible assets will be used internally their usefulness shall be proved;

4) Having sufficient technical financial resources and other resources to complete the development of the intangible

assets and having the ability to use or sell the intangible assets;

5) The expenditure attributable to the development phase of the intangible asset can be measured reliably.

20．Long-term asset impairment

For non-current non-financial assets such as fixed assets construction projects under construction use assets with

limited use life intangible assets investment real estate measured by cost mode and long-term equity investment in

subsidiaries joint ventures and joint ventures the Company determines whether there are signs of impairment on the

95Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

balance sheet date. If there are signs of impairment the recoverable amount shall be estimated and the impairment

test shall be conducted. Goodwill intangible assets with uncertain service life and intangible assets that have not yet

reached the usable state shall be subject to impairment test every year regardless of whether there are signs of

impairment.If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value the

impairment provision shall be drawn according to the difference and included in the impairment loss. The recoverable

amount is the higher value between the fair value of the asset minus the disposal expense and the present value of the

estimated future cash flow of the asset. The fair value of the asset is determined according to the price of the sales

agreement in fair trading; if there is no sales agreement but there is an active asset market the fair value is determined

according to the acquiree bid of the asset; if there is no sales agreement and asset active market the fair value of the

asset is estimated on the basis of the best-available information. The disposal expenses include legal expenses related

to the disposal of the assets related taxes handling fees and direct expenses incurred to bring the assets to a

marketable status. The present value of the estimated future cash flow of the asset shall be determined according to

the amount of the estimated future cash flow generated during the continuous use of the asset and the final disposal at

an appropriate discount rate. The asset impairment provision is calculated and confirmed on the basis of a single asset.If it is difficult to estimate the recoverable amount of a single asset the recoverable amount of the asset group shall be

determined by the asset group to which the asset belongs. Asset groups are the minimum portfolio that can

independently generate cash inflows.In the case of impairment test of goodwill the carrying value of goodwill is allocated to the relevant asset group

reasonably from the date of purchase; if it is difficult to allocate to the relevant asset group it shall be allocated to the

relevant asset group portfolio. The relevant asset group or asset group portfolio is an asset group or asset portfolio

that can benefit from the synergies of business consolidation and is not greater than the reporting division determined

by the Company.When the impairment test is conducted on the relevant asset group or asset group portfolio containing goodwill if

there are signs of impairment in the asset group or asset group portfolio related to goodwill the impairment test shall

be conducted on the asset group or asset group portfolio excluding goodwill to calculate the recoverable amount and

confirm the corresponding impairment loss. Then conduct impairment tests on the asset group or portfolio of asset

groups containing goodwill Compare its carrying value to the recoverable amount If the recoverable amount is lower

than the carrying value The amount of impairment loss is first offset against the carrying value of goodwill in the asset

group or portfolio According to the proportion of the book value of other assets except goodwill in the asset group

or asset group portfolio offset the book value of other assets Provided that the book value of each asset after

deduction shall not be lower than the fair value of the asset minus the net amount (if certain) and the present value of

the estimated future cash flow of the asset (if certain) And not lower than zero.Once the impairment loss of the above assets is recognized the value shall not be recovered in the later period.

21．Long-term deferred expenses

Long-term deferred expenses are the expenses incurred by the Company that shall be borne by the current and

subsequent period for more than one year (excluding one year). Long-term deferred expenses are equally amortized

during the benefit period. If the long-term deferred expenses cannot benefit the later accounting period the

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unamortized surplus value will be transferred to the current profit and loss.Long-term deferred expenses are amortized on a straight-line basis over the following period:

Name Amortization period

Renovation costs 2-10years

22．Contract liabilities

Contract liabilities reflect the obligation to transfer goods to the customer for the consideration received or receivable.If the customer has paid the contract consideration or has obtained the right to receive the contract consideration

unconditionally before the transfer to the customer the contract liabilities shall be recognized according to the

amount received or receivable when the actual payment and the amount due. Contractual assets and liabilities under

the same contract shall be listed in net value and contractual assets and liabilities under different contracts shall not be

offset.

23．Employee compensation

(1) The range of employee compensation

Employee compensation refers to the various forms of compensation or compensation given by the company for the

service provided by the employee or for the termination of the labor relationship. Employee compensation includes

short-term compensation post-resignation benefits dismissal benefits and other long-term employee benefits. The

benefits provided by the company to the employees' spouses children dependants family of the deceased employees

and other beneficiaries also belong to the employee compensation.

(2) Short-term compensation refers to the full employee compensation to be paid within 12 months after the end of

the annual reporting period provided by relevant services.Short-term salary includes social insurance premiums such as employees' wages bonuses allowances and subsidies

employee welfare medical insurance working injury insurance and maternity insurance housing provident fund trade

union fund and employee education fund short-term paid absence short-term profit sharing plan non-monetary

welfare and other short-term salary.Short-term compensation during the accounting period when the employee provides services for the company the

actual short-term compensation is recognized as a liability and recorded in the current profit and loss or related asset

costs.Post-resignation benefits refer to all forms of remuneration and benefits provided by the Company for the retirement

of the employee or the termination of the labor relationship with the Company except for short-term compensation

and dismissal benefits.Post-resignation benefit plan include the defined contribution plan and the defined benefit plan. Among them the

defined contribution plan is the post-resignation welfare plan in which the Company no longer assumes further

payment obligations; the defined benefit plan refers to the post-resignation welfare plan other than the defined

contribution plan.The defined contribution plan includes basic endowment insurance unemployment insurance etc. During the

accounting period when the employee provides the service the amount payable calculated according to the defined

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contribution plan shall be recognized as liabilities and included in the current profit and loss or related asset costs.At the end of the reporting period the employee compensation costs arising from the defined benefit plan should be

recognized as the following components:

* Service costs including current service costs past service costs and settlement gains or losses.* Net interest on the net liabilities or net assets of the defined benefit plan including interest income on the planned

assets interest expense on the obligations of defined benefit plan and interest affected by the asset ceiling.* Remeasure the change in the net liabilities or net assets of the defined benefit plan.Unless other accounting standards require or allow employee benefit costs to be included in asset costs items* and

* above shall be included in current profits and losses; item* shall be included in other comprehensive benefits and

will not be returned to profits and losses during subsequent accounting periods but these amounts recognized in

other comprehensive benefits may be transferred within the equity.Under the defined benefit plan the past service costs are recognized as current expenses on the following date:

1) When modifying the defined benefit plan.

2) When the enterprise confirms the relevant restructuring costs or dismissal benefits.

Determine a settlement benefit or loss when setting a defined benefit plan settlement.

(3) Dismissal benefits refer to the compensation given by the Company to the employee to terminate the labor

relationship with the employee before the expiration of the labor contract or to encourage the employee to voluntarily

accept the reduction.If the Company provides dismissal benefits to the employees the Company shall confirm the liabilities and include in

the current profit and loss: when the Company cannot unilaterally withdraw the dismissal benefits due to the

termination of labor relationship plan or reduction proposal; when the Company recognizes the costs or expenses

related to the restructuring of the dismissal benefits.

(4) Other long-term employee benefits refer to all employee compensation except short-term compensation post-

resignation benefits and dismissal benefits including long-term paid absence long-term disability benefits long-term

profit sharing plan etc.Other long-term employee benefits provided by the Company to employees that meet the conditions of the deposit

plan shall apply to the relevant provisions of the above deposit plan.Except for the circumstances that meet the conditions for the defined contribution plan other long-term employee

welfare net liabilities or net assets shall be recognized and measured in accordance with the relevant provisions of the

defined benefit plan. At the end of this period the Company recognizes the employee compensation costs generated

by other long-term employee benefits as the following components:

* Service cost.* Net interest on other long-term employee welfare net liabilities or net assets.* Re-measure changes in the net liabilities or net assets of other long-term employee benefits.In order to simplify the relevant accounting treatment the total net amount of the above items is included in the

current profit or loss or related asset costs.

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24．The obligations related to the contingent which meet the following conditions shall be recognized as estimated

liabilities:

(1) This obligation is the current obligation of the enterprise;

(2) Performing this obligation is likely to lead to the outflow of economic benefits from the enterprise;

(3) The amount of the obligation can be reliably measured.

The estimated liabilities shall be initially measured at the best estimate of the expenditures required to meet the

relevant current obligations.

(4) Onerous contract

An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed

the economic benefits expected to be received under it. When a contract to be fulfilled becomes an onerous contract

and the obligations arising from it meets the aforementioned recognition conditions of provisions the portion of the

estimated contract loss that exceeds the recognized impairment loss (if any) on the subject assets of the contract shall

be recognized as a provision.

(5) Constructive obligation

For detailed formal restructuring plans that have been announced the direct expenses related to restructuring shall be

recognized as the provision amount provided that the aforementioned recognition conditions of provisions are met.[For constructive obligations in the sale of part of a business restructuring-related obligations are recognized only

when the Company promises to sell part of its business (that is a binding sale agreement has been executed).]

25．Share payment

(1) Accounting treatment method of share payment

Share payment is a transaction that grants the equity instruments or assumes the liabilities determined based on the

equity instruments for the purpose of obtaining the services provided by the employee or other parties. Share payment

is divided into share payment settled by equity and share payment settled in cash.* Share payments settled by equity

Share payment for equity settlement of services provided by the employee should be measured at the fair value of the

employee equity instrument on the grant date. The amount of the fair value shall be calculated in the relevant costs or

expenses on the basis of the best estimate of the waiting period including the relevant costs or expenses on the grant

date and the capital reserve shall be increased accordingly.On each balance sheet date during the waiting period the Company makes the best estimate and corrects the

estimated number of feasible equity instruments based on the latest subsequent information including changes in the

number of feasible employees. The impact of the above estimate shall be included in the relevant costs or expenses of

the current period and the capital reserves shall be adjusted accordingly.In exchange for the equity settlement of the fair value of the service can be measured reliably according to the fair

value of the service in the date if the fair value of the other services cannot be measured reliably but the fair value of

the equity instrument can be measured reliably according to the fair value of the date of the service included in the

relevant costs or expenses and increase the shareholders' equity accordingly.* Payment in shares settled in cash

Share payments settled in cash are measured at the fair value of the liabilities determined on the basis of shares or

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other equity instruments undertaken by the Company. If the right is available immediately after the grant increase the

liabilities on the grant date and the amount of the right on the basis of the best estimate on the basis of the fair value

of the liabilities.On each balance sheet date and settlement date before the settlement of relevant liabilities the fair value of the

liabilities shall be measured and the changes shall be included in the current profit and loss.

(2) Modify or terminate the relevant accounting treatment of the share payment plan

When the Company changes the share payment plan if the modification increases the fair value of the granted equity

instrument the increase in the acquired services shall be recognized according to the increase in the fair value of the

equity instrument. The increase in the fair value of the equity instrument is the difference between the fair value of the

equity instrument on the date of amendment before and after the amendment. If the amendment reduces the total fair

value of share payment or adopts any other way unfavorable to the employee the accounting for the services obtained

shall be deemed to have never occurred unless the Company cancels part or all of the granted equity instruments.During the waiting period if the granted equity instrument is cancelled the Company will treat the cancellation of the

granted equity instrument as an accelerated exercise of right immediately record the amount recognized during the

remaining waiting period into the current profit and loss and recognize the capital reserves. If the employee or other

party can choose to meet the non-viable conditions but not within the waiting period the company will cancel them as

the interest granting instrument.

(3) Accounting for share payment transactions involving the Company and shareholders or actual controllers of the

Company

Where one of the settlement enterprises of the Company and the enterprise receiving services is outside the Company

and one of the other is outside the Company accounting treatment shall be made in the consolidated financial

statements of the Company in accordance with the following provisions:

* If the settlement enterprise settles with its own equity instrument the share payment transaction shall be treated as

share payment for equity settlement; in addition as share payment for cash settlement.If the settlement enterprise is an investor of the service enterprise it shall be recognized as a long-term equity

investment in the service enterprise according to the fair value of the equity instrument on the grant date and the

capital reserves (other capital reserves) or liabilities shall be recognized.* If the service enterprise has no settlement obligation or the employee is its own equity instrument the share

payment transaction shall be treated as the share payment for equity settlement; if the service enterprise has the

settlement obligation and is not its own equity instrument the share payment transaction shall be treated as the share

payment for cash settlement.For the share payment transaction between the enterprises in the Company and the settlement enterprise is not the

same enterprise the confirmation and measurement of the share payment transaction in the individual financial

statements of the service enterprise and the settlement enterprise shall be handled in accordance with the above

principles.

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26．Preferred shares perpetual bonds and other financial instruments

(1) The distinction between perpetual bonds and preferred shares

Financial instruments such as perpetual bonds and preferred shares issued by the Company which meet the following

conditions:

* The financial instrument does not include the contractual obligation to deliver cash or other financial assets to

other parties or to exchange financial assets or financial liabilities with other parties under potentially adverse

conditions;

* If the financial instrument is required to be settled if the financial instrument is not derivative the contractual

obligation of delivering a derivative the Company can only settle the financial instrument by exchanging a fixed

amount of cash or other financial assets in a fixed amount of its own equity instruments.Except for financial instruments that can be classified as equity instruments under the above conditions other

financial instruments issued by the Company shall be classified as financial liabilities.If the financial instruments issued by the Company are compound financial instruments they shall be recognized as a

liability according to the fair value of the liability component and shall be recognized as "other equity instruments"

according to the amount actually received after deducting the fair value of the liability component. The transaction

costs incurred in the issuance of compound financial instruments shall be apportioned between the liability

components and the equity component according to their respective proportion to the total issuance price.

(2) Accounting methods for perpetual debt and preferred shares etc

Financial instruments such as perpetual debt or preferred shares or financial instruments classified as financial

liabilities whose related interest dividends (or dividends) gains or losses and gains or losses arising from redemption

or refinancing are included in the current profit and loss except for the borrowing expenses meeting the

capitalization conditions (see Note IV and 18 "borrowing expenses").For financial instruments such as perpetual bonds and preferred shares classified as equity instruments upon issuance

(including refinancing) repurchase sale or cancellation the Company shall be treated as a change in equity and the

relevant transaction costs shall also be deducted from the equity. The Company treats the distribution of the equity

instrument holder as a profit distribution.The Company does not recognize the change in the fair value of the equity instruments.

27．Revenue

Accounting policies used for revenue recognition and measurement

(1) Revenue recognition principle

When the contract with the customer meets both of the following conditions revenue is recognized when the

customer obtains control of the relevant goods:

* The parties have approved the contract and undertake to perform their respective obligations;

* The contract specifies the rights and obligations of the parties related to the transfer of the goods or services

provided;

* The contract has a clear payment clause related to the transferred goods;

* The contract has commercial substance that is the performance of the contract will change the risk time

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distribution or amount of the Company's future cash flow;

* A consideration entitled to for the transfer of goods to a customer is likely to be recovered.Assess the contract on the start date of the contract identify the individual performance obligations contained in the

contract and share the transaction price to each individual performance obligation in relative proportion to the

individual selling price of the goods promised by each individual performance obligation. The influence of variable

consideration significant financing components existing in the contract non-cash consideration payable customer

consideration and other factors are considered in determining the transaction price. Then determine whether the

individual performance obligation should be performed within a certain period or at a certain point and recognize the

income respectively when performing each individual performance obligation.If one of the following conditions is met it shall be performed within a certain period; otherwise or at a certain point:

1) The customer obtains and consumes the economic benefits brought by the enterprise's performance at the same

time;

2) Customers can control the goods under construction during the performance process of the enterprise;

3) The commodities produced by the enterprise during the performance of the contract have irreplaceable purposes

and the enterprise has the right to collect money for the accumulated performance that has been completed during the

whole contract period.For the performance obligations performed within a certain period of time the revenue shall be recognized according

to the performance progress during that period. The performance progress shall be determined by the input method

or the output method according to the nature of the transferred goods. If the performance progress cannot be

reasonably determined and the cost incurred is expected to be compensated the income shall be recognized according

to the amount of the cost incurred until the performance progress can be reasonably determined.If one of the above conditions is not met the revenue will be apportioned to the transaction price of the individual

performance obligation at the point when the customer obtains control of the relevant goods. When determining

whether the customer has acquired control of the commodity:

<1> The enterprise has the right to current payment for the goods that is the customer has the obligation of current

payment for the goods;

<2> The enterprise has transferred the legal ownership of the commodity to the customer that is the customer has

the legal ownership of the commodity;

<3> The enterprise has transferred the product to the customer that is the customer has the physical possession of

the commodity;

<4> The enterprise has transferred the main risks and remuneration in the ownership of the commodity to the

customer that is the customer has acquired the main risks and remuneration in the ownership of the commodity;

<5> The customer has accepted the item;

<6> Other indications that the customer has acquired control of the goods.

(2) Methods of revenue recognition used by the Company

* Revenue recognized by the Company at a point in time in the control over assets

For the foreign sale of seine fish the Company uses sales contracts and settlement contracts as the basis recognizes

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the change of ownership based on the date of settlement contracts and then recognizes revenue accordingly.Most of the Company’s long-line fishing utensil and fishing goods will be transported back to China for sale. Sales

contracts and settlement contracts will be used as the basis. The Company recognizes the change of ownership based

on the date of settlement contracts and then recognizes revenue accordingly.Processing of aquatic products for domestic sale by the Company: Shandong Zhonglu Oceanic (Yantai) Food Co. Ltd.issues shipment confirmations according to faxed or email orders from domestic clients. The Company delivers goods

based on shipping notes issued by the sales department and confirmed by the warehouse department. After clients

acknowledge receipt the Company will recognize revenue.Processing of aquatic products for foreign sale by the Company: After receiving purchase orders from foreign clients

the international trade department will issue export shipment confirmations and arrange the storage and transport

department to prepare the goods. The Company will revenue sales revenue based on shipping notes packing lists

customs declaration forms and other export documents.* Revenue recognized by the Company by performance period:

The Company’s revenue from cold storage: After receiving orders from clients and after the goods are put in storage

the warehouse department will issue warehouse warrants to clients to confirm the specific names specifications

pieces weight and storage dates. After the warehouse warrants are signed by the warehouse manager and confirmed

by clients the Company will recognize revenue by calculating the storage fees based on the actual number of storage

days.

28．Contract acquisition cost and contract performance cost

(1) Method of determining the amount of assets related to the contract cost

The assets related to the contract costs include the contract acquisition costs and the contract performance costs.Contract acquisition cost that is if the incremental cost incurred in the contract acquisition is expected to be

recovered it is recognized as an asset as the cost of contract acquisition. Incremental cost refers to the cost that will

not occur without obtaining a contract (such as sales commission etc.). If the amortization period of the asset does

not exceed one year it may be recorded into the current profit and loss at the time of occurrence.Other expenses incurred in the Company to obtain the Contract in addition to the incremental cost expected to be

recovered (e. g. travel expenses bid expenses bid expenses and related expenses incurred in preparing the bid

materials) shall be recorded in the current profits and losses upon occurrence unless these expenses are clearly borne

by the customer.Contract performance cost that is the cost incurred in the performance of the contract which does not fall within the

scope of other accounting standards for enterprises other than the Accounting Standards for Business Enterprises

No.14-Revenue (2017 Revision) and meets the following conditions is recognized as the contract performance cost as

an asset:

* This cost is directly related to a current or expected acquired contract including direct labor direct materials

manufacturing costs (or similar costs) costs clearly borne by the Customer and other costs incurred only because of

the Contract;

* This cost increases the future resources of the enterprise to fulfill its performance obligations;

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* This cost is expected to be recoverable.

(2) Amortization of assets related to the contract costs

Assets related to the contract cost are amortized on the same basis as the recognition of the asset and recorded into

the current profit and loss.

(3) Impairment of assets relating to the contract costs

When determining the impairment of assets related to the contract cost firstly determine the impairment loss of other

assets recognized in accordance with other relevant business accounting standards; Then if the book value is higher

than the difference of Item* minus Item* the excess part shall be deducted and recognized as the asset

impairment loss:

* The remaining consideration expected to obtain due to the transfer of the goods related to the asset;

* Estimated estimated for the transfer of the related goods.During the period before the impairment factors after changes make the enterprise after the item* minus the* of

the difference higher than the asset book value back to the original asset impairment provision and included in the

current profits and losses but the book value of the assets should not exceed the assumed not provision for

impairment of the assets in the book value.

29．Governmental subsidy

(1) A lease is a contract in which the Company has transferred or acquired the right to control one or more use of

identified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract

the Company evaluates whether the contract is a lease or contains a lease.

(2) Judgment basis of government subsidies and accounting treatment methods related to assets

The government subsidies related to assets refers to the government subsidies obtained by the Company for purchase

and construction or otherwise forming long-term assets.Government subsidies related to assets shall be recognized as deferred income. Where government subsidies related to

assets are recognized as deferred income they shall be recorded into profits and losses in reasonable and systematic

ways within the service life of the relevant assets. The government subsidies measured in accordance with the nominal

amount shall be directly recorded into the current profit and loss.If the relevant assets are sold transferred scrapped or damaged before the end of their service life the undistributed

balance of the relevant deferred income shall be transferred into the profit and loss of the current period of asset

disposal.The government subsidies related to the daily activities of the Company shall be included in other profits according to

the essence of the economic business. The government subsidies unrelated to the daily activities of the Company shall

be included in the non-operating income and expenditure.

(3) The judgment basis and accounting treatment method of government subsidies related to income

Revenue-related government subsidies refer to government subsidies other than those related to assets.For the government subsidies of comprehensive projects the Company needs to be decomposed into asset-related

parts and earnings-related parts for accounting treatment separately; if it is difficult to distinguish it shall be classified

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as government subsidies related to income.If government subsidies related to earnings are used to compensate the related expenses or losses of the enterprise in

the future period they shall be recognized as deferred income and included in the current profits and losses in the

related costs or losses in the period to compensate the related expenses or losses incurred by the enterprise which

shall be directly recorded in the current profits and losses.The government subsidies related to the daily activities of the Company shall be included in other profits according to

the essence of the economic business. The government subsidies unrelated to the daily activities of the Company shall

be included in the non-operating income and expenditure.

(4) The time of recognition of government subsidies

Where the government subsidies are monetary assets they shall be measured at the amount received. The government

subsidy measured according to the receivable amount shall be confirmed at the end of the period by meeting the

relevant conditions of the financial support policy if the government subsidy is non-monetary assets the government

subsidy shall be confirmed according to the ownership risk and remuneration transfer of the non-monetary assets.Where non-monetary assets shall be measured at fair value; if the fair value cannot be obtained reliably they shall be

measured at nominal amount.When the recognized government subsidies need to be returned if there is a balance of relevant deferred income the

book balance of relevant deferred income shall be written down and the excess part shall be included into the current

profit and loss; if there is no relevant deferred income it shall be directly recorded in the current profit and loss.

30．Deferred tax assets/deferred tax liabilities

Income tax is accounted by the balance sheet debt method. On the balance sheet date analyze and compare the book

value of assets and liabilities and their tax basis. If there is a difference between the two recognize the deferred

income tax assets deferred income tax liabilities and the corresponding deferred income tax expenses (or earnings).On the basis of the calculation and determination of the current income tax (i. e. income tax payable for the current

period) and deferred income tax expenses (or income) the sum of the two is recognized as the income tax expenses

(or income) in the income statement but excluding the income tax impact of transactions or matters directly included

in the owner's equity.Review the book value of deferred income tax assets. If it is likely that insufficient taxable income amount may be

obtained to offset the benefits of the deferred income tax assets the book value of the deferred income tax assets shall

be written down.

31．Lease

A lease is a contract in which the Company has transferred or acquired the right to control one or more use of

identified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract

the Company evaluates whether the contract is a lease or contains a lease.

(1) The Company acts as lessee

The categories of leased assets of the Company are mainly office buildings and cold storage.* Initial measurement

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On the beginning date of the lease term the Company shall recognize the right to use the lease assets as the use right

assets during the lease term and recognize the present value of the outstanding lease payment as lease liabilities

except for short-term lease and low-value asset lease. When calculating the present value of the lease payment the

Company uses the lease interest rate as the discount rate; if the lease interest rate cannot be determined the lessee

incremental borrowing rate shall be used as the discount rate.* Follow-up measurement

If the company can reasonably determine the ownership of the leased assets at the time of the expiration of the lease

term the depreciation shall be withdrawn within the remaining useful life of the leased assets. If it is impossible to

reasonably determine that the ownership of the lease asset can be acquired at the expiration of the lease term the

depreciation shall be deducted within the shorter period of the lease term and the remaining service life of the leased

asset.See NoteⅣ and 20 "Long-term asset impairment" for the impairment test method and impairment provision method

of the use assets.For the lease liabilities the Company shall calculate the interest expenses for each period during the lease term at the

fixed periodic interest rate which is included in the current profit and loss or the relevant asset costs. Variable lease

payments not included in the measurement of lease liabilities are recorded into current profit and loss or related asset

costs upon actual occurrence.After the start of the lease term when the substantial fixed payment changes the expected payable amount changes

the index or ratio used to determine the lease payment changes the purchase option the renewal option or the actual

exercise situation changes the lease payment and adjust the book value of the use assets accordingly. If the book

value of the use right assets has been reduced to zero but the lease liabilities still need to be further reduced the

remaining amount shall be included in the current profit and loss.* Short-term lease and low-value asset leasing

For short-term lease (in the lease start day lease not more than 12 months) and low value asset lease the company to

simplify processing method do not confirm the use of assets and lease liabilities and during the lease period

according to the line method or other system reasonable lease payments into the relevant asset cost or current profit

and loss.* Lease obligation

On the beginning date of the lease term the Company recognizes the present value of the outstanding lease payment

as a lease liability. When calculating the present value of the lease payment the lease interest rate shall be used as the

discount rate. If the interest rate of the lease cannot be determined the company's incremental borrowing rate shall be

used as the discount rate. The difference between the lease payment and its present value shall be regarded as the

unidentified financing fee and the interest expense shall be recognized during the lease period at the discount rate of

the present value of the lease payment and included in the current profit and loss. Variable lease payments not

included in the measurement of lease liabilities shall be recorded into the current profit and loss upon actual

occurrence.

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After the commencement of the lease term when the substantially fixed payment amount changes the expected

payable amount changes the index or ratio of the lease payment amount changes the result of the assessment or the

change of the lease payment amount if the book value of the asset has been reduced to zero but the lease liabilities

still need to be further reduced the remaining amount shall be included in the current profit and loss.

(2) The Company acts as lessor

On the commencement date of the lease the Company divides the lease into financial lease and operating lease based

on the substance of the transaction. A finance lease is a lease that substantially transfers almost all of the risks and

rewards associated with the ownership of the leased assets. Operating lease refers to a lease other than a financial lease.* Operating lease

The Company adopts the straight-line method to confirm the lease collection amount of the operating lease as the

rental income of each period during the lease term. Variable lease payments related to the operating lease and not

included in the lease collection amount shall be included in the current profit and loss upon actual occurrence.* The Company’s revenue applicable to the lease standards

The Company’s property and other lease revenue: After entering into a lease contract with a client the Company

charges lease fees based on the lease area and the contractual unit price to the lessee and bears any fixed costs (such as

staff salaries maintenance costs etc.). During the lease term the fees are settled on a regular basis between the

Company and the client. The Company recognizes revenue based on the lease period.* Finance Lease

On the lease commencement date the Group recognizes a lease receivable and derecognizes the underlying asset of

the finance lease.The lease receivable is measured initially at the net investment in the lease (the sum of the present

value of the unguaranteed residual value and the lease payments not yet received at the lease commencement date

discounted using the interest rate implicit in the lease). Interest income is recognized over the lease term using the

fixed periodic interest rate method. Variable lease payments received by the Group that are not included in the

measurement of the net investment in the lease are recognized in profit or loss when incurred.

32．Other Important Accounting Policies and Accounting Estimations

(1) Production safety expenditures

In November 2022 the Ministry of Finance and the Ministry of Emergency Management issued the Management

Measures for the Withdrawal and Utilization of Production Safety Expenditures in Enterprise (CZ [2022] No. 136)

and it was implemented on and as of the date of issue. At the same time the Management Measures for the

Withdrawal and Utilization of Production Safety Expenditures in Enterprises (CQ [2012] No. 16) was superseded.

(2) Debt restructuring

When the Company participates in the debt restructuring as a creditor and pays off the debt with assets or turns the

debt into equity instruments for debt restructuring it shall be confirmed when the relevant assets meet its definition

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and confirmation conditions. If the debt-offset assets are financial assets see Note IV 10 and financial instruments; if

the debt-offset assets are non-financial assets the initial measured amount is the sum of the fair value of the waived

claims and other directly attributable costs. The difference between the fair value of the abandoned claim and the

book value shall be included in the current profit and loss. If the debt is restructured by means of modifying other

terms the Company shall according to the substantive modification of the contract judge whether the original

creditor's right to terminate the confirmation and confirm a new creditor's right according to the revised terms or

recalculate the book balance of the creditor's right.When the company participates in debt restructuring debt restructuring with assets or converting debt into equity

instruments terminate the relevant assets and the liquidated liabilities meet the conditions for termination of

confirmation and measure the fair value of the equity instruments (according to the fair value of the liquidated debt

when the fair value cannot be estimated reliably). The difference between the book value of the paid debts and the

book value of the transferred assets (or the recognized amount of the equity instruments) shall be recorded in the

current profit and loss.If the debt is restructured by modifying other terms the Company shall according to the substantive modification of

the contract confirm a new debt in accordance with the revised terms or recalculate the book balance of the debt.For the exemption of the debt restructuring the recognition can only be terminated if the Company no longer have

the current obligation to repay the debt restructuring.

33．Changes in significant accounting policies and accounting estimates

(1) Important accounting policy changes

* The Company started to implement the No. 17 of the Accounting Standards for Business Enterprises

Interpretation“on the division between current and non-current liabilities” in 2024. The accounting policy change

has no effect on the Company’s financial statements.* The Company started to implement the Interpretation of No. 17 of the Accounting Standards for Business

Enterprises Interpretation“on accounting treatment for sale and leaseback transactions” in 2024 and made

retrospective application to the sale and leaseback transactions conducted after January 1 2021. The accounting policy

change has no effect on the Company’s financial statements.* The Company started to implement the No. 18 of the Accounting Standards for Business EnterprisesInterpretation“on accounting treatment for warranty-type quality assurance that does not belong to the individualperformance.” The warranty-type quality assurance that does not belong to the individual performance accrued by

the Company was originally recognized in “selling expenses.” In accordance with Article 2 of the No. 18 ASBE

Interpretation it is now recognized in “cost of sales” and “other operating costs” which is presented in the

“operating costs” in the income statement. The accounting policy change has no effect on the Company’s financial

statements.

(2) Changes in important accounting estimates

None.

34．Significant accounting judgments and estimates

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In the process of applying accounting policies the company due to the internal uncertainty of business activities

needs to judge estimate and assume the book value of the statement items that cannot be accurately measured. These

judgments estimates and assumptions are based on the past history of the company's management and on considering

other relevant factors. These judgments estimates and assumptions affect the reported amount of revenues expenses

assets and liabilities and the disclosure of contingent liabilities on the balance sheet date. However the actual results of

the uncertainty of these estimates may differ from the current estimates of the Company's management which in turn

results in a significant adjustment of the carrying amount of the assets or liabilities affected in the future.The Company shall periodically review the aforementioned judgments estimates and assumptions on the basis of the

change the accounting estimates shall be confirmed in the current period; and the current period the impact shall be

confirmed in the current period and the future period.On the balance sheet date the Company shall judge estimate and assume the amount of the financial statement as

follows:

(1) Revenue recognition

As described in Note IV 27“Revenue” the following significant accounting judgments and estimates are involved

in revenue recognition:

* Identifying contracts with customers;

* Estimating the collectibility of the consideration to which the Company is entitled in exchange for goods

transferred to customers;

* Identifying performance obligations in contracts;

* Estimating variable consideration in contracts and the amount for which cumulative revenue recognized is highly

probable not to be reversed significantly when the related uncertainty is eliminated;

* Assessing whether a significant financing component exists in contracts;

* Estimating the standalone selling prices of individual performance obligations in contracts;

* Determining whether a performance obligation is satisfied over time or at a point in time.The Company mainly makes judgments based on past experience and practice. Changes in these significant judgments

and estimates may affect the operating income operating costs and profit or loss for the current or future periods of

the change and may have a material impact.

(2) Significant accounting judgments and estimates related to leasing

* Identification of leases

When identifying whether a contract is a lease or includes a lease the Company needs to evaluate whether an

identified asset exists and the Client controls the right to use the asset for a certain period. In the appraisal the nature

of the asset the material replacement right and whether the client is entitled to almost all the financial benefits arising

from using the asset during the period and to dominate the use of the asset are considered.* Classification of leases

When the Company as a lessor classifies the lease into operating lease and financial lease. In the classification the

management needs to make an analysis and judgment on whether all the risks and rewards related to the ownership of

the leased assets have been substantially transferred to the lessee.

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* Lease obligation

When the Company is the lessee the lease liabilities are initially measured at the present value of the lease payments

outstanding on the beginning date of the lease term. When measuring the present value of the lease payment the

Company estimates the discount rate used and the lease term of the lease contract with a renewal option or

termination option. In evaluating the lease term the Company considers all relevant facts and circumstances related to

the economic benefits of exercising the option including the expected changes in the facts and circumstances between

the beginning of the lease term and the exercise date of the option. Different judgments and estimates may affect the

recognition of lease liabilities and tenure assets and will affect the profits and losses of the subsequent period.

(3) Impairment of financial instruments

The Company uses the expected credit loss model to evaluate the impairment of financial instruments and application

of the expected credit loss model requires the company to make significant judgments and estimates and to consider

all reasonable and grounded information including forward-looking information. When making such judgments and

estimates the Company deduces the expected changes in the debtor's credit risk based on the historical repayment

data combined with economic policies macroeconomic indicators industry risks and other factors.

(4) Reserve for inventory depreciation

According to the inventory accounting policy the company measures the lower cost and the net realizable value and

sets aside the inventory depreciation provision for the cost that is higher than the net realizable value and the old and

unsalable inventory. The impairment of inventory to net realizable value is based on the sale of inventory and its net

realizable value. The appraisal of inventory impairment requires the management to make a judgment and estimate on

the basis of obtaining conclusive evidence and considering the purpose of holding the inventory and the impact of

matters after the balance sheet date. The difference between the actual result and the original estimate will affect the

withdrawal or reversal of the book value of the inventory and the inventory depreciation provision during the

estimated change period.

(5) Fair value of the financial instruments

For financial instruments that do not have an active trading market the Company determines its fair value through

various valuation methods. These valuation methods include discounted cash flow model analysis etc. At the

valuation the Company estimates the future cash flow credit risk market volatility and correlation and selects the

appropriate discount rate. These relevant assumptions are uncertain and their changes can have an impact on the fair

value of the financial instruments.

(6) Long-term asset impairment provision

On the balance sheet date the Company judged the possible impairment of non-current assets except the financial

assets. For the intangible assets with uncertain service life in addition to the annual impairment test the impairment

test is also conducted when there are signs of impairment. Other non-current assets other than financial assets shall be

tested for impairment when there is evidence that their book amount is not recoverable.When the book value of an asset or asset group is higher than the recoverable amount that is the net value minus the

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disposal expense and the present value of the expected future cash flow the impairment has occurred.The net fair value minus the disposal expense is determined by referring to the sales agreement price of a similar asset

in fair trading or the observable market price minus the incremental cost that may be directly attributable to the

disposal of the asset.When predicting the present value of future cash flows it is necessary to make significant judgments on the output

selling price related operating costs and the discount rate used in calculating the present value. In estimating the

recoverable amount the Company will use all relevant information available including projections of production

selling prices and associated operating costs based on reasonable and supportive assumptions.

(7) Provision for Goodwill Impairment

The Company tests goodwill for impairment at least annually. In testing goodwill for impairment the present value of

estimated future cash flows of the relevant asset group or combination of asset groups including goodwill shall be

calculated. Estimates of future cash flows shall be made for such asset group or combination of asset groups and a

pre-tax discount rate that appropriately reflects the time value of money and the risks specific to the assets shall be

determined.If the management revises the gross profit margin used in calculating the future cash flows of the asset group or

combination of asset groups and the revised gross profit margin is lower than the current one additional provision

for goodwill impairment shall be made.If the management revises the pre-tax discount rate applied to discounting cash flows and the revised pre-tax

discount rate is higher than the current one additional provision for goodwill impairment shall be made.If the actual gross profit margin or pre-tax discount rate is higher or lower than management’s estimates the

previously recognized goodwill impairment loss shall not be reversed.

(8) Depreciation and amortization

After considering the residual value of the investment real estate fixed assets and intangible assets the Company shall

make depreciation and amortization according to the straight-line method. The Company periodically reviews the

service life to determine the amount of depreciation and amortization expense that will be included in each reporting

period. The service life is determined by the Company based on past experience with similar assets and combined with

expected technical updates. If previous estimates have changed significantly depreciation and amortization charges

will be adjusted in the future period.

(9) Development Expenditures

In determining the amount to be capitalized the management of the Company is required to make assumptions in

respect of the estimated future cash flows of the assets the applicable discount rate and the estimated beneficial

period.

(10) Deferred income tax assets

Within the limits of potentially sufficient taxable profits to offset losses the Company recognizes deferred income tax

assets for all unused tax losses. This requires the management of the company to use a lot of judgment to estimate the

time and amount of future taxable profits and combine the tax planning strategy to determine the amount of deferred

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income tax assets that should be recognized.

(11) Income tax

In the normal business activities of the company there are some uncertainties in the final tax treatment and

calculation of some transactions. Whether some items can be itemized before tax requires the examination and

approval of the competent tax authorities. If the final determination of these tax matters varies from the original

estimated amount the difference will affect the current income tax and deferred income tax during the final

determination period.

(12) Internal retirement benefits and supplementary retirement benefits

The amount of the company's internal retirement benefits and supplementary retirement benefits expenses and

liabilities is determined according to various assumptions. These assumptions include the discount rate the average

growth rate of medical expenses the growth rate of subsidies for retired and retired personnel and other factors.Differences in actual results and assumptions will be immediately recognized and charged for the current year.Although the management believes that reasonable assumptions have been adopted the change in the actual

experience value and the assumptions will still affect the expenses and liabilities of the Company's internal retirement

benefits and supplementary retirement benefits.

(13) Provisions

The Company estimates and recognizes appropriate provisions for product quality warranties expected contract losses

liquidated damages for delayed delivery etc. based on contractual terms current knowledge and historical experience.When such contingent events have resulted in a present obligation and it is probable that the settlement of such

present obligation will result in an outflow of economic benefits from the Company the Company recognizes

provisions for contingent events at the best estimate of the expenditure required to settle the relevant present

obligation. The recognition and measurement of provisions rely heavily on management’s judgment. In making such

judgments the Company is required to evaluate factors relevant to these contingent events including risks

uncertainties and the time value of money.Among others the Company recognizes provisions for after-sales quality and maintenance commitments provided to

customers in connection with the sale repair and retrofitting of sold products. Recent maintenance experience data of

the Company has been taken into account in recognizing provisions although such recent experience may not reflect

future maintenance conditions. Any increase or decrease in this provision may affect the profit or loss of future years.

(14) Fair Value Measurement

Certain assets and liabilities of the Company are measured at fair value in the financial statements. The Board of

Directors of the Company has established a Valuation Committee (led by the Chief Financial Officer of the Company)

to determine appropriate valuation techniques and inputs for fair value measurement. In estimating the fair value of an

asset or liability the Company uses available observable market data. If Level 1 inputs are not available the Company

engages independent qualified third-party valuers to perform valuations. The Valuation Committee works closely with

qualified external valuers to determine appropriate valuation techniques and inputs for relevant models. The Chief

Financial Officer reports the findings of the Valuation Committee to the Board of Directors on a quarterly basis to

explain the causes of fluctuations in the fair value of relevant assets and liabilities. Information about the valuation

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techniques and inputs used in determining the fair value of various assets and liabilities is disclosed in Note XII to

these financial statements.

35．Other major accounting policies accounting estimates and methods of preparing financial statements

The Company determines its operating segments based on internal organizational structure management

requirements and internal reporting systems and identifies reportable segments on the basis of operating segments.The financial information of each reportable segment including revenue cost of sales total assets and total liabilities

is disclosed in the notes to the financial statements. If the Company is unable to disclose the total assets or total

liabilities of each reportable segment the reasons shall be provided. An operating segment refers to a component of

the Company that meets all of the following conditions:

Ⅴ.Tax

1. Main taxes and tax rates

Tax Taxation base Tax rate

VAT Output tax minus the deductible input tax 13%， 9%，6%， 5%， exemptedUrban maintenance & construction tax Circulation tax amount payable 7%

Business income taxes taxable income Exempted，25%， 20%， 8%Explanation of enterprise income tax rate for tax entities with different rates

Name of tax entity Income tax rate

Shandong Zhonglu Oceanic Fisheries Co. LTD Pelagic fishing is exempted the rest will be taxed at 25%

Shandong Zhonglu Haiyan Oceanic Fisheries Co. LTD exempted

AFRICA STAR FISHERIES LIMITED According to the local regulations of Ghana the export part is taxed

at 8% and the domestic part is taxed at 25%

HABITAT INTERNATIONAL CORPORATION exempted

LAIF FISHERIES CO.LTD 25%

ZHONG GHA FOODS COMP ANY LIMITED 25%

YAW ADDO FISHERIES COMPANY LIMTED According to the local regulations of Ghana the export part is taxed

at 8% and the domestic part is taxed at 25%

Shandong Zhonglu Aquatic Marine Co. LTD 20%

Shandong Zhonglu Oceanic Refrigeration Co. LTD The part of the aquatic product processing industry is exempted

and other parts are 25%

Shandong Zhonglu Oceanic (Yantai) Food Co. LTD The part of the aquatic product processing industry is exempted

and other parts are 25%

Zhonglu Oceanic (Qingdao) Industrial Investment and 25%

Development Co. LTD

2. Tax preference

Tax Preferences and Approval Documents

In accordance with Item 1 of Article 15 of the Provisional Regulations of the People’s Republic of China on Value-

Added Tax Item 1 of Article 35 of the Implementation Rules of the Provisional Regulations of the People’s Republic

of China on Value-Added Tax and the notice of the Ministry of Finance and the State Taxation Administration on

113Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

issuing the Notes to the Scope of Taxation for Agricultural Products through CSZ [1995] No. 52 the sales revenue of

the Company and its subsidiaries from long-range fishing falls within the scope of the aquaculture industry as defined

in the foregoing provisions and hence it is entitled to the value-added tax preference.In accordance with the provisions of the Notice on the Comprehensive Roll-out of Business Tax to Value Added Tax

Transformation Pilot Program (No. 36 of 2016) the value-added tax is exempt for the direct or indirect international

freight forwarding services provided by taxpayers. Shandong Zhonglu Aquaculture Shipping Co. Ltd. a subsidiary of

the Company is exempt from the value-added tax for the relevant sales revenue it has gained.According to the enterprise income tax law of the People's Republic of China (the President of the People's Republic

of China order no. 63) the State Council of the People's Republic of China order no. 512 the implementation of the

law of the People's Republic of China the Ministry of Finance state administration of taxation on enjoy preferential

policies of enterprise income tax of agricultural products (try out) notice (tax [2008] no. 149) the Ministry of Finance

the state administration of taxation on enjoy preferential enterprise income tax of agricultural products about the

scope of supplementary notice (Fiscal and Taxation [2011] No.26) and the relevant provisions of the Announcement

of the State Administration of Taxation on the Implementation of Preferential Enterprise Income Tax Treatment for

Agriculture Forestry Animal Husbandry and Fishery Projects (Announcement of the State Administration of

Taxation No.482011) The company carries out the primary processing of agricultural products and the entrusted

primary processing of agricultural products The processing fees it charges Can be handled according to the duty-free

items of the primary processing of agricultural products. The company engaged in ocean fishing business and primary

processing of agricultural products income is exempted from enterprise income tax. The income obtained from the

company except ocean fishing and primary processing of agricultural products shall be paid at the rate of 25%.According to the announcement of the Ministry of Finance and the State Administration of Taxation on further

implementing the preferential income tax policies for small and micro enterprises (Announcement No. 13 of 2022 of

the Ministry of Finance and the State Administration of Taxation) and the announcement on the preferential income

tax policies for small and micro enterprises and individual industrial and commercial households (Announcement No.

6 of 2023 of the Ministry of Finance and the State Administration of Taxation) the part of the annual taxable income

not exceeding 3 million yuan shall be included in the taxable income at a reduced rate of 25% and the taxable income

shall be included at 20% .The subsidiary Shandong Zhonglu Aquatic Products Shipping Co. Ltd. shall apply the tax

preference.Ⅵ. Notes to the key items in the consolidated financial statements

(The following items (including the main items in the financial statements of the parent Company) Unless specifically

noted "beginning" means January 12025 "end" means December 312025 "previous end" means December 312024"Current" means 2025 and "previous" means 2024.）

1. Cash at bank and on hand

Item Ending Balance Initial Balance

Cash on hand 615541.90 1510503.38

Cash at bank 283690747.60 247926760.02

Other monetary funds 28789884.20 10038933.10

Total 313096173.70 259476196.50

Including: the total balance deposited overseas 141966335.85 104529095.33

The total amount of funds that have restrictions on use 28789884.20 10038933.10

114Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Ending Balance Initial Balance

due to mortgages pledges or freezes

Note: Overseas deposits are cash and bank deposits of foreign subsidiaries; other monetary funds are paper margin.

2. Notes receivable

Notes receivable that have been endorsed or discounted by our company at the end of the period and have not yet matured on the

balance sheet date.Item Ending Balance Initial Balance

Bank acceptance bills 10177175.00

total 10177175.00

3. Accounts receivable

(1) Accounts receivable by aging

Aging Ending book balance Opening book balance

Within 6 months 78934032.24 51093265.85

6 months-1 years 2150893.05 1679745.26

1-2 years 1349915.10 259339.90

2-3 years 211279.40 580212.22

More than 3 years 6501141.07 6525704.44

Total 89147260.86 60138267.67

(2) Accounts receivable by provision method for allowance credit losses

Item Ending Balance

Book Balance PCT (%) Allowance for PCT Carrying amount

credit losses

Individually assessment subject to - - - - -

allowance for credit losses

Grouping assessment subject to 89147260.86 100.00% 11173546.24 12.53% 77973714.62

allowance for credit losses

Total 89147260.86 100.00% 11173546.24 12.53% 77973714.62

(Continued)

Item Initial Balance

Book Balance PCT Allowance for PCT Carrying amount

credit losses

Individually assessment subject to - - - - -

allowance for credit losses

Grouping assessment subject to 60138267.67 100.00% 9616250.39 15.99% 50522017.28

allowance for credit losses

Total 60138267.67 100.00% 9616250.39 15.99% 50522017.28

Accounts receivable that are assessed allowance for credit losses on grouping basis

Item Ending Balance

115Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Balance Allowance for PCT

credit losses

Within 6 months 78934032.24 3946701.63 5.00%

6 months-1 years 2150893.05 215089.31 10.00%

1-2 years 1349915.10 404974.53 30.00%

2-3 years 211279.40 105639.70 50.00%

More than 3 years 6501141.07 6501141.07 100.00%

Total 89147260.86 11173546.24

(Continued)

Item Initial Balance

Balance Allowance for PCT

credit losses

Within 6 months 51093265.85 2554663.34 5.00%

6 months-1 years 1679745.26 167974.53 10.00%

1-2 years 259339.90 77801.97 30.00%

2-3 years 580212.22 290106.11 50.00%

More than 3 years 6525704.44 6525704.44 100.00%

Total 60138267.67 9616250.39

(3) Allowance for credit losses

Item Initial Balance Amount of change in the current period Ending Balance

Provision Recovery or Write off Exchange impact

reversal

Grouping 9616250.39 1673403.38 84106.16 32001.37 11173546.24

assessment

subject to

allowance for

credit losses

Total 9616250.39 1673403.38 84106.16 32001.37 11173546.24

(4) Accounts receivable due from the top five debtors of the Company are as follows:

Company name Ending balance of Ending Ending balance Proportion of the Ending balance of

accounts balance of of accounts total amount allowance for doubtful

receivable contract assets receivable and accounts

contract assets

A 13908773.10 13908773.10 15.60% 695438.66

B 9528274.88 9528274.88 10.69% 476413.74

C 8289160.64 8289160.64 9.30% 414458.03

D 4739719.00 4739719.00 5.32% 236985.95

E 3647244.32 3647244.32 4.09% 182362.22

Total 40113171.94 40113171.94 45.00% 2005658.60

4. Prepayments

116Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

(1) Aging analysis of prepayments

Aging Ending Balance Initial Balance

Balance PCT Balance PCT

Within 1 year 17319421.36 98.27% 27825036.62 98.29%

1-2 years 296696.82 1.68% 485171.88 1.71%

2-3 years 8951.88 0.05% 2.88

More than 3 years 2.81 0.00%

Total 17625072.87 100.00% 28310211.38 100.00%

(2) The top five prepayments are as follows

Company name Relationship with Ending balance Proportion of Advance Reason for the

the company total amount payment time failure of

settlement

SOUTHERN SEAS LOGISTIC unrelated party 6853080.00 38.88% 2025Annual Unfinished

LIMITED amortization

PARTIES TO THE NAURU unrelated party 2446022.40 13.88% 2025Annual Unfinished

AGREEMENT amortization

China Overseas Fisheries Association unrelated party 2086084.08 11.84% 2025Annual Unfinished

amortization

Weihai Huanhai Aquatic Products Co. unrelated party 1374518.10 7.80% 2025Annual Billing period not

Ltd. yet reached

KH Shipping unrelated party 1333845.82 7.57% 2025Annual Billing period not

yet reached

Total 14093550.40 79.96%

5. Other receivables

Item Ending Balance Initial Balance

Interest receivable - -

Dividends receivable - -

Other receivables 105905380.86 71692831.62

Total 105905380.86 71692831.62

Other receivables

* Aging of other receivables

Aging Ending book balance Opening book balance

Within 6 months 70798681.01 71753653.34

6 months-1 years 1087051.80 2701842.76

1-2 years 53220842.35 1415512.97

2-3 years 827395.34 208686.75

More than 3 years 4702363.09 4625144.91

Total 130636333.59 80704840.73

* Category of other receivables by nature

Nature Ending book balance Opening book balance

117Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Nature Ending book balance Opening book balance

Guarantee deposit 2085454.62 1915306.49

Current account and others 128550878.97 78789534.24

Total 130636333.59 80704840.73

* Classified disclosure by bad debt provision method

category Ending Balance

Book balance proportion Bad debt Provision ratio book value

provision

Provision for bad debts based on

individual items

Provision for bad debts by 130636333.59 100.00% 24730952.73 11.17% 105905380.86

combination

Total 130636333.59 100.00% 24730952.73 11.17% 105905380.86

(Continued)

category Initial Balance

Book balance proportion Bad debt Provision ratio book value

provision

Provision for bad debts based on

individual items

Provision for bad debts by 80704840.73 100.00% 9012009.11 11.17% 71692831.62

combination

total 80704840.73 100.00% 9012009.11 11.17% 71692831.62

1) Provision for bad debts by combination：

Combination provision item: aging combination

Aging of accounts Ending Balance

Book balance Bad debt Provision ratio

provision

Within 6 months 70798681.01 3539934.05 5.00%

6 months-1 years 1087051.80 108705.18 10.00%

1-2 years 53220842.35 15966252.71 30.00%

2-3 years 827395.34 413697.70 50.00%

More than 3 years 4702363.09 4702363.09 100.00%

Total 130636333.59 24730952.73

(Continued)

Aging of accounts Initial Balance

Book balance Bad debt Provision ratio

provision

Within 6 months 71753653.34 3587682.65 5.00%

6 months-1 years 2701842.76 270184.28 10.00%

1-2 years 1415512.97 424653.89 30.00%

2-3 years 208686.75 104343.38 50.00%

More than 3 years 4625144.91 4625144.91 100.00%

118Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Aging of accounts Initial Balance

Book balance Bad debt Provision ratio

provision

Total 80704840.73 9012009.11

* Provision for bad debt (provision for bad debt under the general expected credit loss model)

The allowance for credit losses Stage one Stage two Stage three Total

12-month ECL Lifetime ECL Lifetime ECL

(credit- (credit-impaired)

unimpaired)

Beginning balance 4386864.20 4625144.91 9012009.11

Revaluation of beginning balance 4386864.20 4625144.91 9012009.11

Provision 15662852.11 77218.18 15740070.29

Reversal

Charge-off

Write-off 3358.41 3358.41

Exchange impact 17768.26 17768.26

Total 20028589.64 4702363.09 24730952.73

* Allowance for credit losses

Item Initial Balance Amount of change in the current period Ending Balance

Provision Recovery or Write off Exchange impact

reversal

Allowance for 9012009.11 15740070.29 3358.41 17768.26 24730952.73

credit losses of

other receivables

Total 9012009.11 15740070.29 3358.41 17768.26 24730952.73

* Write-off of other receivables during the period

Item Write-off amount

Write-off of other receivables 3358.41

* Other receivables due from the top five debtors are as follows:

Company name Nature of the fund Ending balance Aging Proportion in the Ending balance of

t total amount allowance for

doubtful accounts

Qingdao Laoshan District Bureau of Government 107287931.00 Within 6 82.13% 18200796.80

Agriculture and Rural Affairs grants months;1-2 years

Shandong State-owned Assets Custody fee 1800000.00 Within 6 months 1.38% 90000.00

Investment Holdings Co. Ltd.MRL LIMITED. Deposit 1054320.00 1-2 years 0.81% 316296.00

Zhicheng Zhang Claims payment 973052.92 0-3 years 0.74% 249630.70

on behalf

China Shipowners Mutual Assurance Medical expenses 278918.18 2-3 years 0.21% 139459.09

Association

Total 111394222.10 85.27% 18996182.59

119Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

6. Inventories

(1) Inventories by categories

Item Ending Balance Initial Balance

Book balance Provision for Carrying amount Book balance Provision for Carrying amount

diminution in diminution in

value or value or

impairment impairment

provision for costs provision for costs

to fulfil contracts to fulfil contracts

Raw materials 188879786.63 5166031.66 183713754.97 155978130.93 5407142.40 150570988.53

Low-value 139185.77 139185.77 256408.88 256408.88

consumables

Commodities 212748925.25 21737464.61 191011460.64 353097476.86 55671479.56 297425997.30

Revolving materials 1256319.95 1256319.95 1208814.93 1208814.93

Costs to fulfil 5785199.65 5785199.65 968942.64 968942.64

contracts

Total 408809417.25 26903496.27 381905920.98 511509774.24 61078621.96 450431152.28

(2) Provision for diminution in value of inventories and impairment of costs to fulfil contracts

Item Initial Balance Additions during the year Reductions during the year Ending Balance

Provision Other Reversal or write- Exchange impact

down

Raw materials 5407142.40 4292415.41 4533526.15 5166031.66

Commodities 55671479.56 18615454.28 52546492.35 2976.88 21737464.61

Total 61078621.96 22907869.69 57080018.50 2976.88 26903496.27

7. Other current assets

Item Ending Balance Initial Balance

Input tax to be deducted 27973475.15 21609942.76

Prepaid income tax 167437.36 190608.32

Prepaid other taxes 11530.75 12358.01

Total 28152443.26 21812909.09

8. Long-term equity investments

Item Initial Balance Change in the current year

Additional Reduce Investment Other Other

investment investment gains and losse comprehensive changes in

income equity

Ji Nan Qin Zhen Food 878622.04 -436729.96

Technology Co. Ltd.Total 878622.04 -436729.96

(Continued)

Item Change in the current year Ending Balance Impairment

Declare a cash Provision for Other reserve ending

120Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

dividend or impairment balance

profit

Ji Nan Qin Zhen Food Technology Co. Ltd. 441892.08

Total 441892.08

9. Investment property

Investment property measured by cost

Item Buildings Total

* Cost

Initial Balance 51308578.35 51308578.35

Additions - -

Reductions - -

Ending Balance 51308578.35 51308578.35

* Accumulated depreciation or amortization -

Initial Balance 24291363.58 24291363.58

Additions 1326076.68 1326076.68

Including: Depreciation or amortization 1326076.68 1326076.68

Reductions - -

Including: Disposition -

Ending Balance 25617440.26 25617440.26

* Provision for impairment -

Initial Balance 886512.06 886512.06

Additions -

Reductions -

Ending Balance 886512.06 886512.06

* Carrying amount -

Ending Balance 24804626.03 24804626.03

Initial Balance 26130702.71 26130702.71

10. Fixed assets

Category Ending Balance Initial Balance

Fixed assets 927820225.94 999486042.10

Disposal of fixed assets

Total 927820225.94 999486042.10

* Movement of fixed assets

Item Buildings Boats & nets Machinery & Transportation Furniture and Total

equipment vehicles office equipment

Cost

Initial Balance 196082626.62 1251794445.80 65333861.41 10730195.55 12475370.05 1536416499.43

Additions -25137.00 12499663.87 1855428.41 38055.58 125795.81 14493806.67

Including: Purchase - 20610636.71 1861569.21 164238.93 144716.30 22781161.15

Transfer from construction in - 3883906.72 - - - 3883906.72

process

Impact of exchange rate -25137.00 -11994879.56 -6140.80 -126183.35 -18920.49 -12171261.20

fluctuations

121Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Buildings Boats & nets Machinery & Transportation Furniture and Total

equipment vehicles office equipment

Reductions - 28837894.96 305102.24 190173.79 374372.00 29707542.99

Including: Disposals or scrap - 28837894.96 305102.24 190173.79 374372.00 29707542.99

Impact of exchange rate -

fluctuations

Ending Balance 196057489.62 1235456214.71 66884187.58 10578077.34 12226793.86 1521202763.11

Accumulated depreciation

Initial Balance 62256380.15 416302597.55 39249566.27 8776387.70 10187952.16 536772883.83

Additions 5707916.70 73684631.21 3152058.74 286748.89 497351.79 83328707.33

Including: Provision 5715925.16 79424492.56 3155311.85 387607.10 512416.55 89195753.22

Impact of exchange rate fluctuations -8008.46 -5739861.35 -3253.11 -100858.21 -15064.76 -5867045.89

Reductions - 26092638.76 274592.02 171156.41 338240.30 26876627.49

Including: Disposals or scrap - 26092638.76 274592.02 171156.41 338240.30 26876627.49

Impact of exchange rate -

fluctuations

Ending Balance 67964296.85 463894590.00 42127032.99 8891980.18 10347063.65 593224963.67

Provision for impairment -

Initial Balance - 157573.50 - - - 157573.50

Additions -

Reductions -

Ending Balance - 157573.50 - - - 157573.50

Carrying amount -

Ending Balance 128093192.77 771404051.21 24757154.59 1686097.16 1879730.21 927820225.94

Initial Balance 133826246.47 835334274.75 26084295.14 1953807.85 2287417.89 999486042.10

* Temporarily idle fixed assets

Item Cost Accumulated Provision for Carrying amount Remark

depreciation impairment

Machinery & equipment 2179020.00 1961118.00 - 217902.00

Netting gear 45999481.94 31950350.22 - 14049131.72

Total 48178501.94 33911468.22 - 14267033.72

* Fixed assets with incomplete property rights certificates

According to the Debt Repayment Opinion signed between our company and Shandong Fisheries Group Corporation

in April 2006 as well as the Civil Ruling (2005) Lizhi Zi No. 1299 issued by the People's Court of Lixia District Jinan

City Shandong Fisheries Group Corporation will offset the debt owed to Shandong Zhonglu Yuanyang Fisheries Co.Ltd. by its office complex building and office supplies located at 43 Heping Road Lixia District Jinan City. The

original book value of the office complex building is 54223132.40 yuan with a book value of 25975700.31 yuan (of

which the self use part is included in fixed assets and the rental part is included in investment real estate). The land

used for this property was originally allocated land and the property ownership certificate is for the property. Not yet

processed。

11. Construction in process

Category Ending Balance Initial Balance

Constructed in process 205135249.27 118015048.57

Construction materials

Total 205135249.27 118015048.57

122Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

* Construction in process

Item Ending Balance Initial Balance

Book balance Provision for Carrying amount Book balance Provision for Carrying amount

impairment impairment

Atlantic Siege Project 4077658.55 4077658.55 - 4077658.55 4077658.55 -

The Marine Innovation 205050797.71 - 205050797.71 118015048.57 - 118015048.57

Industrial Park Project

Reefer vessel 84451.56 - 84451.56

total 209212907.82 4077658.55 205135249.27 122092707.12 4077658.55 118015048.57

* Movement of significant construction in progress

Project name Budget Initial Balance Additions Transfer to fixed Other Ending Balance

assets reductions

Tuna Trading Center 51000000.00 33688542.86 3850989.53 37539532.39

Gatekeepers of Cold Storage 5 174010000.00 69042410.12 78587152.71 147629562.83

and Cold Storage 3

Total 225010000.00 102730952.98 82438142.24 0.00 0.00 185169095.22

(Continued)

Project name Proportion of Project progress Interest capitalization Where: the Current Source of funds

cumulative accumulated amount amount of interest

project input to interest capitalization

budget capitalization in rate

the current

period

Tuna Trading Center 73.61% 65.17% 4208043.60 1316955.48 3.50% Long term loans

and own funds

Gatekeepers of Cold Storage 5 84.84% 76.00% 7960687.60 3750284.74 3.17% Long term loans

and Cold Storage 3 and own funds

Total 12168731.20 5067240.22 -

12. Right-of-use asset

Item Buildings Total

（1）Cost

Initial Balance 498364.44 498364.44

123Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Buildings Total

Additions

Including: New leases

Impact of exchange rate fluctuations

Reductions 498364.44 498364.44

Including: Exchange impact 498364.44 498364.44

Impact of exchange rate fluctuations

Ending Balance

（2）Accumulated depreciation

Initial Balance 498364.44 498364.44

Additions

Including: Provision

Impact of exchange rate fluctuations

Reductions 498364.44 498364.44

Including: Exchange impact 498364.44 498364.44

Impact of exchange rate fluctuations

Ending Balance

Provision for impairment

Initial Balance

Additions

Reductions

Ending Balance

Carrying amount

Ending Balance

Initial Balance

13. Intangible assets

Item Land use rights Computer software Total

* Cost

Initial Balance 69409842.26 2335115.89 71744958.15

Additions

Including: Purchase

Reductions

Including: Disposition

Ending Balance 69409842.26 2335115.89 71744958.15

* Accumulated depreciation -

Initial Balance 10278432.52 2064499.56 12342932.08

Additions 1428972.84 63530.97 1492503.81

Including: Provision 1428972.84 63530.97 1492503.81

Reductions

Including: Disposition

Ending Balance 11707405.36 2128030.53 13835435.89

* Provision for impairment

Initial Balance

Additions

124Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Including: Provision

Reductions

Including: Disposition

Ending Balance

* Carrying amount

Ending Balance 57702436.90 207085.36 57909522.26

Initial Balance 59131409.74 270616.33 59402026.07

14. Long-term deferred expenses

Item Initial Balance Additions Amortization Reductions Ending Balance

Office building decoration 1784037.79 679675.63 256903.04 2206810.38

Decoration of Tuna Technology 859789.68 491308.44 368481.24

Museum

total 2643827.47 679675.63 748211.48 2575291.62

15. Deferred tax assets and deferred tax liabilities

(1) Deferred tax assets before offsetting

Item Ending Balance Initial Balance

Deductible Deferred tax Deductible Deferred tax

temporary assets temporary assets

differences differences

Allowance for credit losses 1156930.27 235661.23 986375.92 201474.13

Deferred income 4011354.26 1002838.57 4640134.32 1160033.58

Total 5168284.53 1238499.80 5626510.24 1361507.71

(2) Deferred tax liabilities before offsetting

Item Ending Balance Initial Balance

Taxable Deferred tax Taxable temporary Deferred tax

temporary liabilities differences liabilities

differences

Accelerated depreciation of fixed assets before tax 8704373.77 2176093.44 9305898.14 2326474.54

deduction

total 8704373.77 2176093.44 9305898.14 2326474.54

(3) The items not recognised deferred tax assets

Item Ending Balance Initial Balance

Deductible temporary differences -Allowance for credit losses 34747568.70 17641883.58

Deductible temporary differences -Provision for inventories 26903496.27 61078621.96

Deductible temporary differences -Deductible losses 37197760.25

Deductible temporary differences -Provision for impairment of 4077658.55 4077658.55

construction in progress

Total 65728723.52 119995924.34

Note: No deferred income tax assets are recognized for deductible temporary differences due to the exemption of

corporate income tax for those companies that form deductible temporary differences. There is uncertainty about

whether some companies will be able to generate sufficient taxable income in the future.

125Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

(4) The deductible losses of unconfirmed deferred income tax assets will expire in the following years

Year Ending Balance Initial Balance Remarks

year 2025 37197760.25

total 37197760.25

16. Other non-current assets

Item Ending Balance Initial Balance

Book Provision for Carrying amount Book balance Provision for Carrying

balance impairment impairment amount

Prepayment for 2000000.00 2000000.00 2000000.00 2000000.00

land

Prepayment for 21629081.65 21629081.65 14807420.94 14807420.94

construction in

process

Total 23629081.65 23629081.65 16807420.94 16807420.94

17. Ownership or using rights of assets subject to restriction

Item Ending Balance

Book balance Book value Restricted type Restricted case

Monetary funds 28789884.20 28789884.20 Bill deposit；

Guarantee bond

deposit

Fixed assets 473692267.44 432974053.41 Mortgage for loan

Construction in Progress 194062840.63 194062840.63 Mortgage for loan

Intangible Assets 52255113.26 48074703.98 Mortgage for loan

Total 748800105.53 703901482.22（continue）

Item Initial Balance

Book balance Book value Restricted type Restricted case

Monetary funds 10038933.10 10038933.10 Bill deposit；

Guarantee bond

deposit

Fixed assets 444910737.16 420418444.51 Mortgage for loan

Total 454949670.26 430457377.61

18. Short-term loans

Item Ending Balance Initial Balance

Collateral loan

126Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Ending Balance Initial Balance

Loans on credit 16022933.34 46013200.00

Total 16022933.34 46013200.00

Note: The loan balance of the current period includes the interest payable of RMB 22933.34;

19. Notes payable

Item Ending Balance Initial Balance

Banker's acceptance 56979768.40 20853039.00

total 56979768.40 20853039.00

20. Accounts payable

Item Ending Balance Initial Balance

Within 1 year(including 1 year) 77509149.94 140710875.88

More than 1 year 5034531.48 8600722.88

Total 82543681.42 149311598.76

21. Advances from customers

Item Ending Balance Initial Balance

Rent 1201097.79 1539814.03

Total 1201097.79 1539814.03

22. Contract liabilities

Item Ending Balance Initial Balance

Advance payment for goods 8866554.08 15557313.74

Total 8866554.08 15557313.74

23. Employee benefits payable

(1) Movement of employee benefits payable

Item Initial Balance Increase Decrease Ending Balance

Short-term employee benefits 64214191.17 211198773.56 199987915.90 75425048.83

Post-employment benefits—defined contribution plans 1773522.92 13776595.58 13851385.17 1698733.33

Termination benefits 1215115.75 1215115.75

Other benefits due within one year 3578.34 9669.66 13248.00

Total 65991292.43 226200154.55 215067664.82 77123782.16

(2) Details of the short-term employee benefits

Item Initial Balance Accrued Paid Ending Balance

Salaries bonus and allowances 62642483.72 196280622.20 185164413.97 73758691.95

Staff welfare 2926749.74 2926749.74 -

Social insurances 5758287.85 5758287.85 -

Including: Medical insurance 5177751.80 5177751.80 -

Work injury insurance 580536.05 580536.05 -

127Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Initial Balance Accrued Paid Ending Balance

Maternity insurance -

Housing Fund 5102426.81 5102426.81 -

Union funds and employee education fee 1571707.45 1130686.96 1036037.53 1666356.88

Short-term paid absences -

Short-term profit sharing plan -

Total 64214191.17 211198773.56 199987915.90 75425048.83

(3) Defined contribution plans

Item Initial Balance Accrued Paid Ending Balance

Primary endowment insurance - 10337519.24 10337519.24 -

Unemployment insurance - 443348.75 443348.75 -

Pension insurance 1769560.92 2659995.92 2734785.51 1694771.33

Social security and subsidies for retired workers 3962.00 335731.67 335731.67 3962.00

Total 1773522.92 13776595.58 13851385.17 1698733.33

24. Taxes and surcharges payable

Category Ending Balance Initial Balance

Value added tax 313943.05 345360.75

Enterprise income tax 1132290.71 1707735.60

Urban maintenance and construction tax 17069.51 16740.44

Estate tax 376654.33 337797.58

Land use tax 323569.87 323569.87

Individual income tax 724602.15 555560.15

Educational surtax 12192.49 11957.43

Withholding tax 5617389.27 2875953.23

Other taxes and surcharges 186488.03 145857.04

Total 8704199.41 6320532.09

25.Other payables

Item Ending Balance Initial Balance

Interest payable

Dividends payable 5234835.31 3311799.62

Other payables 19337100.36 20581093.98

Total 24571935.67 23892893.60

(1) Dividends payable

Item Ending Balance Initial Balance Reasons for non-payment for more

than 1 year

Common stock dividend 5234835.31 3311799.62

Total 5234835.31 3311799.62

(2) Other payables

* Other payables by nature of payment

128Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Ending Balance Initial Balance

Security deposit 5518240.83 5357745.00

Staff expenses 912274.58 1230770.73

Safety cost 1708525.48 2415927.69

other 11198059.47 11576650.56

Total 19337100.36 20581093.98

* Material other payables with aging over 1 year

Company Name Nature of Payment Ending Balance Aging Percentage of Total Other

Payables at End of Period

Qingdao Kaize Construction Deposit 5000000.00 3–4 years 25.86%

Engineering Management Co. Ltd.Total 5000000.00 25.86%

26. Non-current assets due within one year

Item Ending Balance Initial Balance

Long-term loans due within one year 16679833.33 14879833.33

Total 16679833.33 14879833.33

27. Other current liabilities

Item Ending Balance Initial Balance

Advance collection of sales tax 19248.74 51536.97

Total 19248.74 51536.97

28. Long-term loans

Long-term loans by category

Item Ending Balance Initial Balance

Secured loan 191985241.69 114210091.81

Mortgage or guarantee a loan 286074007.87 281323150.54

Less: long-term loans maturing within one year 16679833.33 14879833.33

Total 461379416.23 380653409.02

Note 1: The guarantors for the guaranteed loans are respectively Shandong Zhonglu Haiyan Ocean Fishery Co. Ltd. Shandong Zhonglu

Ocean (Yantai) Food Co. Ltd. and Shandong Zhonglu Ocean Fishery Co. Ltd.Note 2: Mortgage and collateral include purse seine vessels Tailong 7 and Tailong 9 with a book value of RMB 344578891.06; the

properties of Room 2501-2506 Building 1 No.31 Xianxialing Road Laoshan District with real estate ownership certificate numbers: Lu

2022 QDLS BDCQ No. 0051706 0051707 0051708 0051709 0051710 0051711 book value of RMB 62006096.97; fishing vessel Lu

Qing Yuan Yu 367 and Luqing Yuanyu 368with a book value of RMB 26389065.38; construction in progress of Zhonglu Marine

Innovation Industrial Park Project with a book value of RMB 194062840.63; land use right owned by Zhonglu Ocean (Qingdao)

Industrial Investment & Development Co. Ltd. with real estate ownership certificate No. Lu 2022 Jiaozhou BDCQ No. 0000267 book

value of RMB 48074703.98. The guarantors are Shandong Zhonglu Haiyan Ocean Fishery Co. Ltd. and Shandong Zhonglu Ocean

(Yantai) Food Co. Ltd.

29. Long-term employee benefits payable

129Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Ending Balance Initial Balance

Employee Benefits Payable 428721.93 463135.85

Other long-term benefits 63931.96 71839.89

Total 492653.89 534975.74

30. Deferred income

Item Initial Balance Increase Decrease Ending Balance Reason for the

deferred income

Government grants 53576277.76 2170000.00 2633323.85 53112953.91 asset-related

Total 53576277.76 2170000.00 2633323.85 53112953.91

31. Share capital

Item Initial Balance Movement Ending Balance

Issuance of Bonus shares Capital reserve Others sub-total

new share transfer in

Total shares 266071320.00 266071320.00

32. Capital reserve

Item Initial Balance Increase Decrease Ending Balance

Share premiums 189093492.79 189093492.79

Other capital reserve 106526779.23 106526779.23

Total 295620272.02 - - 295620272.02

33. Other comprehensive income

Item Initial Balance (A) Year ended 31/12/2025

Amount before Less: OCI in prior Less: OCI in prior

tax periods transfer in periods carried

profit or loss for forward to

the current period retained earnings

OCI items which will be reclassified subsequently to profit -313223.04 -7557287.86

or loss

Translation differences from translation of foreign -313223.04 -7557287.86

currency financial statements

Total of OCI -313223.04 -7557287.86

(Continued)

Item Year ended 31/12/2025 Ending Balance

Less: income tax Amount after tax Amount after tax (C)=(A)+(B

attributable to the attributable to

Company(B) minority interests

OCI items which will be reclassified subsequently to profit - -6016522.32 -1540765.54 -6329745.36

130Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

or loss

Translation differences from translation of foreign -6016522.32 -1540765.54 -6329745.36

currency financial statements

Total of OCI - -6016522.32 -1540765.54 -6329745.36

34. Special reserve

Item Initial Balance Increase Decrease Ending Balance

Safety costs - 1772796.32 1753757.48 19038.84

Total - 1772796.32 1753757.48 19038.84

35. Surplus reserve

Item Initial Balance Increase Decrease Ending Balance

Statutory surplus reserve 21908064.19 21908064.19

Total 21908064.19 - - 21908064.19

36. Undistributed profit

Item Year ended 31/12/2025 Year ended 31/12/2024

Retained earnings As at 31/12/2024before adjustment 483904313.48 449363748.93

The total adjustment of retained earnings As at 1/1/2025 (Increase+ decrease-)

Retained earnings As at 1/1/2025 after adjustment 483904313.48 449363748.93

Add: Net profit attributable to the Company during the year 33472952.45 34540564.55

Less: Appropriation of statutory surplus reserve

Withdrawal of discretionary surplus reserve

Extract general risk provision

Common stock dividends payable

Common stock dividends converted to share capital

Retained earnings as at 31/12/2025 517377265.93 483904313.48

37. Operating income and operating costs

(1) Operating income and operating costs

Item Year ended 31/12/2025 Year ended 31/12/2024

Income Costs Income Costs

Primary operating business 1475811120.90 1355798503.23 1373652687.28 1266523354.64

Other operating business 10881588.76 2356533.15 11007578.68 3277047.87

Total 1486692709.66 1358155036.38 1384660265.96 1269800402.51

(2) Status of income from contracts

* Revenue applicable to the Company’s product sales contract processing cold storage and other business

Item Product sales revenue Processing income Cold storage revenue

Operating income Operating cost Operating Operating cost Operating income Operating cost

income

Confirm at a certain 1315140197.44 1232569722.85 8018794.72 7060273.53

point

Confirm within a certain - - 13309171.88 10844471.43

131Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

period of time

Total 1315140197.44 1232569722.85 8018794.72 7060273.53 13309171.88 10844471.43

（Continue）

Item Refrigerated transportation revenue Other business income Total

Operating income Operating cost Operating Operating cost Operating income Operating cost

income

Confirm at a certain 4950776.23 417960.11 1328109768.39 1240047956.49

point

Confirm within a certain 139342956.86 105228797.32 1698113.19 - 154350241.93 116073268.75

period of time

Total 139342956.86 105228797.32 6648889.42 417960.11 1482460010.32 1356121225.24

* Income adapted to the lease standard

Item Rent Rental and others Total

Operating income Operating cost Operating income Operating cost

Income from main business - -

Other business income 4232699.34 1938573.04 4232699.34 1938573.04

Total 4232699.34 1938573.04 4232699.34 1938573.04

(3) Description of the performance obligations

The sale of goods by the Company is the performance obligation at a certain point and the Company recognizes the

income when the control of the goods transfers; the processing service of the Company is the performance obligation

at a certain point and the Company recognizes the income when the delivery delivers the products.The cold storage fee income of the company belongs to the performance obligation within a certain period of time

and the company recognizes the income based on the actual days of goods stored every month.The refrigerated transportation services by the Company are the performance obligation over a period of time and the

Company recognizes the income based on the service days confirmed by customers and the prices agreed in the

contract.The company's housing and other rental income of the company belongs to the performance obligations performed

within a certain period of time and the company recognizes the income according to the customer's lease period.

38. Taxes and surcharges

Item Year ended 31/12/2025 Year ended 31/12/2024

Urban maintenance and construction tax 108097.57 129975.52

Educational surcharge 46278.54 55488.54

Local educational surcharge 30852.38 36992.34

Property tax 1916835.05 1901257.76

Land use tax 507589.88 507812.60

Stamp duty 821267.69 380944.33

132Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Year ended 31/12/2025 Year ended 31/12/2024

Vehicle and vessel tax 18623.72 19521.60

Others - -

Total 3449544.83 3031992.69

39. Selling and distribution expenses

Item Year ended 31/12/2025 Year ended 31/12/2024

Employee compensation expenditure 1519542.80 1670191.44

Business promotion fees 1541076.98 1339792.88

Travelling expenses 198122.92 267149.84

Depreciation charges 97628.39 90767.57

Communication expenses 8682.40 10635.29

Others 926457.11 846959.38

Total 4291510.60 4225496.40

40. General and administrative expenses

Item Year ended 31/12/2025 Year ended 31/12/2024

Employee compensation expenditure 48333781.77 43119338.77

Depreciation and amortization charges 6191148.48 5017898.93

Depreciation of Right-of-use assets - 91626.45

Travelling expenses 2627857.62 2515157.42

Business entertainment 463016.76 772472.77

Vehicle expenses 1092968.15 887006.05

Agent service fees 1058574.26 1316869.29

Office expenses 3630297.48 4206495.91

Water and electricity expenses 1466217.39 1556528.68

Others 5459096.34 4579830.24

Total 70322958.25 64063224.51

41. Research and development expenses

Item Year ended 31/12/2025 Year ended 31/12/2024

Employee compensation expenditure 1761176.13 1512361.81

Materials 2414908.33 3401774.43

Depreciation and amortization charges 1646665.19 741413.93

Others 605799.42 611528.94

Total 6428549.07 6267079.11

42. Finance expenses

Item Year ended 31/12/2025 Year ended 31/12/2024

Interest expenses 10728894.79 13886313.80

Less: interest income 1413486.86 770654.61

Losses or gains from foreign exchange 4210015.83 -378456.61

Finance charges 1556854.70 1340703.67

Interest expenses on lease liabilities -

133Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Year ended 31/12/2025 Year ended 31/12/2024

Others 324815.79 135820.51

Total 15407094.25 14213726.76

43. Other income

Item Year ended 31/12/2025 Year ended 31/12/2024

International compliance Enhancement grant funds 55758700.00 62020500.00

Subsidy for Renovation and Upgrading of Onboard Equipment of 1741547.04

Fishing Vessels

Financial subsidies for special construction funds of the Blue 698486.88 698486.88

Economic Zone

Industrial and commercial capital investment in rural revitalization 451092.85 1400000.00

project construction award

Subsidy for deep-freeze tuna vessel reimbursement - 5715437.90

others 721143.84 2069973.30

total 59370970.61 71904398.08

44. Investment income

Item Year ended 31/12/2025 Year ended 31/12/2024

Income from long-term equity investments accounted for by the equity -436729.96 -535409.28

method

Gains on debt restructuring - -135804.65

Total -436729.96 -671213.93

45. Credit impairment losses

Item Year ended 31/12/2025 Year ended 31/12/2024

Allowance for credit losses of accounts receivable -1673403.38 -449855.83

Allowance for credit losses of other receivables -15740070.29 -3605114.76

Total -17413473.67 -4054970.59

46. Impairment on assets

Item Year ended 31/12/2025 Year ended 31/12/2024

Provision for diminution in value of inventory and Loss of contract -22907869.69 -54938355.20

performance costs

Total -22907869.690 -54938355.20

47. Gains from disposal of assets

Item Year ended 31/12/2025 Year ended 31/12/2024

Gains and losses on disposal of fixed assets -47108.24 -

Total -47108.24 -

48. Non-operating income

Item Year ended Year ended Amount to be included in non-

31/12/2025 31/12/2024 recurring gain or loss for the year

134Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Year ended Year ended Amount to be included in non-

31/12/2025 31/12/2024 recurring gain or loss for the year

Others 238593.49 4715.59 238593.49

Total 238593.49 4715.59 238593.49

49. Non-operating expenses

Item Year ended Year ended Amount to be included in non-

31/12/2025 31/12/2024 recurring gain or loss for the year

Loss of scrapped fixed assets 2142070.38 140535.97 2142070.38

Others 28150.55 7124.76 28150.55

Total 2170220.93 147660.73 2170220.93

50. Income tax expenses

(1) Details of income tax expenses

Item Year ended 31/12/2025 Year ended 31/12/2024

Current income tax 2867647.99 3387280.07

Deferred income tax -27373.19 -86839.99

Total 2840274.80 3300440.08

(2) Reconciliation between income tax expenses and accounting profit is as follows:

Item Year ended 31/12/2025

Profit before tax 45272177.89

Income tax expenses calculated at statutory/applicable tax rates 11318044.47

Effect of different tax rate of subsidiaries -132759.26

Effect of adjustment for income tax in prior year 45226.19

Effect of income not subject to income tax -2850629.12

Effect of expenses nondeductible for tax purposes 80617.34

Effect of using deductible losses of deferred tax assets not recognised in prior periods -2562776.56

Effect of unrecognised deductible temporary differences and deductible losses in current period -3057448.26

Income tax expenses 2840274.80

51. Other comprehensive income

As noteⅥ.33.

52. Notes to statement of cash flows

(1) Cash flows from operating activities

* Cash received related to other operating activities

Item Year ended 31/12/2025 Year ended 31/12/2024

135Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Year ended 31/12/2025 Year ended 31/12/2024

Finance expenses- interest income 1413486.86 770654.61

Government grants and others 10800306.76 13750099.95

Credit deposit - -

Current account and other 238593.49 2578932.62

Total 12452387.11 17099687.18

* Cash paid related to other operating activities

Item Year ended Year ended

31/12/202531/12/2024

Cash payment to selling expenses 2674339.41 2464537.39

Cash payment to administrative expense 15916296.16 16435241.11

Cash payment to research and development expenses 3692016.19 4013303.37

Current account and other 7878697.84 1962352.87

Total 30161349.60 24875434.74

(2) Cash flows from investing activities

* Cash received related to other investing activities

Item Year ended Year ended

31/12/202531/12/2024

Construction deposit - 10041370.35

Total - 10041370.35

* Changes in liabilities arising from financing activities

Item Initial Balance Current increase Current decrease Ending Balance

Cash movement Non-cash Cash movement Non-cash

movement movement

Short-term loan 46013200.00 26000000.00 9733.34 56000000.00 16022933.34

Long-term loan 380653409.02 97291702.81 114137.73 16679833.33 461379416.23

Non-current 14879833.33 - 16679833.33 14879833.33 - 16679833.33

liabilities due within

one year

Total 441546442.35 123291702.81 16803704.40 70879833.33 16679833.33 494082182.90

53. Supplement to statement of cash flows

(1) Supplement to statement of cash flows

Item Year ended Year ended

31/12/202531/12/2024

1.Net profit adjusted to cash flows from operating activities

136Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Year ended Year ended

31/12/202531/12/2024

Net profit 42431903.09 31854817.12

Add:losses Provision for asset impairment 22907869.69 -16459514.46

Credit impairment 17413473.67 4054970.59

Depreciation of fixed assets depletion of oil and gas assets depreciation of productive 90496854.90 82856984.77

biological assets and depreciation of investment property

Depreciation of right-of-use asset - 98934.79

Amortization of intangible assets 447401.49 509254.30

Amortization of long-term deferred expenses 748211.48 712280.73

Losses on disposal of fixed assets intangible assets and other long-term assets ("-" for gains) 47108.24Losses on write-down of fixed assets ("-" for gains） 2142070.38 140535.97

Losses from changes in fair value ("-" for gains) -

Financial expenses ("-" for income) 14938910.62 10833286.24

Investments losses ("-" for gains) 436729.96 671213.93

Decreases in the deferred tax assets ("-" for increases) 123007.91 63541.09

Increases in the deferred tax liabilities ("-" for decreases) -150381.10 -150381.08

Decreases in inventories ("-" for increases) 45620338.49 61727897.31

Decreases in operating receivables ("-" for increases) -92291171.65 -87985100.03

Increases in operating payables ("-" for decreases) -34216421.00 28991708.72

Others -

Net cash flows from operating activities 111095906.17 117920429.99

2. Significant investing and financing activities not involving cash inflow and outflow

Conversion of debt into capital -

Convertible corporate bonds maturing within one year -

Fixed assets acquired under financial lease -

3. Net change in cash and cash equivalents

Cash as at 31/12/2025 284306289.50 249437263.40

Less: cash As at 1/1/2025 249437263.40 243127423.03

Add: cash equivalents as at 31/12/2025 -

Less: cash equivalents as at 31/12/2024 -

Net increase in cash and cash equivalents 34869026.10 6309840.37

(2) Cash and cash equivalents

Item Balance as at Balance as at

31/12/202531/12/2024

1. Cash 284306289.50 249437263.40

Including: cash on hand 615541.90 1510503.38

Unrestricted bank deposits 283690747.60 247926760.02

2.Cash equivalents

Bond investments due within 3 months

3. Cash and cash equivalents As at 31/12/2023 284306289.50 249437263.40

(3) Monetary funds other than cash and cash equivalents

137Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Year ended Year ended argument

31/12/202531/12/2024

Other monetary funds 28789884.20 10038933.10 Bill deposit

54. Monetary items denominated in foreign currency

(1) Monetary items denominated in foreign currency

Item Balance in foreign Exchange rate Balance translated into

currency as at RMB as at 31/12/2025

31/12/2025

Monetary funds 146933375.54

Among: USD 15503880.77 7.0288 108973676.87

EUR 3315700.40 8.2633 27398737.89

GHS 15395972.48 0.6726 10355388.09

FCFA

JPY 4588983.00 0.0448 205572.69

Accounts receivable 47820313.26

Among：USD 3392753.60 7.0288 23846986.51

GHS 2047964.89 0.6726 1377476.67

JPY 159428435.00 0.0448 7141915.61

FCFA 1225060803.12 0.0126 15453934.47

Prepayments 13624943.70

Among：USD 1747391.38 7.0288 12282064.54

FCFA 106503096.00 0.0126 1342879.16

Other receivables 3360070.84

Among：USD 472615.21 7.0288 3321917.77

GHS 19250.00 0.6726 12947.75

AUD 439.50 4.6892 2060.90

SBD 26940.30 0.8591 23144.41

Accounts payable 22039832.00

Among：USD 3130574.04 7.0288 22004178.82

JPY 272500.00 0.0448 12207.18

AUD 5000.00 4.6892 23446.00

Contract liabilities 8315716.56

Among：USD 176799.45 7.0288 1242687.98

GHS 5620745.57 0.6726 3780550.81

JPY 73497729.00 0.0448 3292477.77

Other payables 16740252.86

Among：USD 2207920.42 7.0288 15519031.05

EUR 133639.70 8.2633 1104310.79

GHS 173816.23 0.6726 116911.02

(2) Reporting currencies of significant foreign operating entities

Significant foreign operating entity Overseas location of Reporting Basis for

primary operation currency determination

138Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

HABITAT INTERNATIONAL CORPORATION The Republic of USD Business

Panama environment

LAIF FISHERIES COMPANY LIMITED The Republic of Ghana USD Business

environment

YAW ADDO FISHERIES COMPANY LIMITED The Republic of Ghana USD Business

environment

ZHONG GHA FOODS COMPANY LIMITED The Republic of Ghana USD Business

environment

AFRICA STAR FISHERIES LIMITED The Republic of Ghana USD Business

environment

55. Lease

(1) Our company acts as lessor

Operating lease

Item Lease income Among them: Income related to

variable lease payments not included

in lease collections

Rental income 4232699.34 -

total 4232699.34 -

Ⅶ. Research and development expenses

List by property

Item Year ended 31/12/2025 Year ended 31/12/2024

Employee compensation 1761176.13 1512361.81

Materials 2414908.33 3401774.43

Depreciation cost 975356.75 741413.93

Other 1277107.86 611528.94

Total 6428549.07 6267079.11

Includes: Expensed research and development 6428549.07 6267079.11

expenditures

Ⅷ. Changes in consolidation scope

There are no consolidation scope changes in the current period.Ⅸ. Interest in other entities

1 .Interest in subsidiaries

(1) Composition of the Company

Subsidiary name Principal Registered capital Place of Business Shareholding ratio（%） Acquisition

place of registration nature direct indirect mode

operation

Shandong Zhonglu aquatic shipping Co. Qingdao 2250.56 Ten Qingdao Boat charter 100 Investment and

LTD Shandong thousand RMB Shandong establishment

Province Province

Shandong Zhonglu Yuanyang (Yantai) Food Yantai 10432.23 Ten Yantai Shandong Food 46.69 25.77 Investment and

Co. LTD. (hereinafter referred to as Shandong thousand RMB processing and establishment

139Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Subsidiary name Principal Registered capital Place of Business Shareholding ratio（%） Acquisition

place of registration nature direct indirect mode

operation

"Zhonglu Food") Province refrigeration

Shandong Zhonglu Haiyan Ocean Fishing Qingdao 22161.73 Ten Qingdao Pelagic fishing 59.05 Investment and

Co. LTD. (referred to as "Zhonglu Haiyan Shandong thousand RMB Shandong establishment

Zi") Province Province

Zhonglu Yuanyang (Qingdao) Industrial Qingdao 19200 Ten Qingdao Food 66.63 33.37 Investment and

Investment Development Co. LTD Shandong thousand RMB Shandong processing and establishment

Province Province refrigeration

HABITAT INTERNATIONAL Panama 150.74 Ten Panama Boat charter 100 Investment and

CORPORATION thousand USD establishment

LAIF FISHERIES COMPANY LIMITED Ghana 40 Ten thousand Ghana Pelagic fishing Zhonglu Hai Investment and

USD Yanzi holding establishment

100.00

AFRICA STAR FISHERIES LIMITED Ghana 40 Ten thousand Ghana Pelagic fishing Zhonglu Hai Investment and

USD Yanzi holding establishment

100.00

ZHONG GHA FOODS COMPANY Ghana 50 Ten thousand Ghana Pelagic fishing Zhonglu Hai Investment and

LIMITED USD Yanzi holding establishment

100.00

Shandong Zhonglu Ocean cold storage Co. Yantai 1500 Ten Yantai Shandong Warehousing Zhonglu Food Investment and

LTD Shandong thousand RMB Province service holdings 100.00 establishment

Province

YAW ADDO FISHERIES COMPANY Ghana Ghana Pelagic fishing Operating lease

LIMITED

(2) Significant non-wholly owned subsidiary

Company name Minority Profit or loss Dividends Balance of the

shareholding attributable to the announced to minority interests

minority for the distribute to the as at 31/12/2025

current period minority

Shandong Zhonglu Haiyan Oceanic Fisheries Co. Ltd. 40.95% 2437513.35 159274299.31

Shandong Zhonglu Oceanic (Yantai) Food Co. Ltd. 27.54% 6521437.29 2023035.69 104394041.11

Total 8958950.64 2023035.69 263668340.42

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

Subsidiary name Ending Balance

Current assets Non-current Total assets Current liabilities Non-current Total liabilities

assets liabilities

Shandong Zhonglu 390989961.45 188427536.15 579417497.60 184446707.40 6022562.33 190469269.73

Haiyan Oceanic

Fisheries Co. Ltd.Shandong Zhonglu 420490349.67 106515246.37 527005596.04 140678184.27 7264081.67 147942265.94

Oceanic (Yantai)

Food Co. Ltd.Total 811480311.12 294942782.52 1106423093.64 325124891.67 13286644.00 338411535.67

(Continued)

Subsidiary name Initial Balance

Current assets Non-current Total assets Current liabilities Non-current Total liabilities

140Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

assets liabilities

Shandong Zhonglu 363222045.51 213055121.58 576277167.09 183233569.78 6285229.78 189518799.56

Haiyan Oceanic

Fisheries Co. Ltd.Shandong Zhonglu 431697984.77 113182468.49 544880453.26 173873796.39 8277392.13 182151188.52

Oceanic (Yantai)

Food Co. Ltd

Total 794920030.28 326237590.07 1121157620.35 357107366.17 14562621.91 371669988.08

(Continued)

Subsidiary name Year ended 31/12/2025

Operating income Net profit Total Cash flows from

comprehensive operating activities

income

Shandong Zhonglu Haiyan Oceanic Fisheries Co. Ltd. 393404470.47 5952413.56 2189860.34 37249478.73

Shandong Zhonglu Oceanic (Yantai) Food Co. Ltd 729879883.68 23679873.96 23679873.96 -3840203.19

Total 1123284354.15 29632287.52 25869734.30 33409275.54

(Continued)

Subsidiary name Year ended 31/12/2024

Operating income Net profit Total Cash flows from

comprehensive operating activities

income

Shandong Zhonglu Haiyan Oceanic Fisheries Co. Ltd. 352164528.36 -17948798.86 -16271364.26 6652357.21

Shandong Zhonglu Oceanic (Yantai) Food Co. Ltd 618452840.80 16936404.15 16936404.15 40630473.41

Total 970617369.16 -1012394.71 665039.89 47282830.62

2. Interests in joint venture arrangements or joint ventures

Summary financial information of non-material joint ventures and associates

Item Ending Balance / Year ended Initial Balance / Year ended

31/12/202531/12/2024

Associated enterprise：

Jinan Qini Food Technology Co. LTD 441892.08 878622.04

Total 441892.08 878622.04

The sum of the following items in proportion to -436729.96 -535409.28

shareholding

Among them: Net profit -436729.96 -535409.28

Other comprehensive income - -

141Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Ending Balance / Year ended Initial Balance / Year ended

31/12/202531/12/2024

Total comprehensive income -436729.96 -535409.28

* The basis for holding less than 20% of the voting rights with a significant impact or holding 20% or more of the

voting rights with no significant impact.The subsidiary of the Company Shandong Zhonglu Oceanic (Yantai) Food Co. Ltd. holds 15.00% of Jinan Qinzhen

Food Technology Co. Ltd. and appoints directors which has a significant impact on its production and operation.Ⅹ. Government subsidy

1.Government grants recognized as other receivables at the end of the period

Closing balance of other receivables

Company Name Ending Balance (in Yuan)

Qingdao Laoshan District Bureau of Agriculture and Rural Affairs 107287931.00

Total 107287931.00

Note: In accordance with the Notice on the Publicity of Subsidies for Improving International Performance

Capability (2024) and the Notice on the Publicity of Subsidies for Improving International Performance Capability

(2025) as of December 31 2025 the Company and its controlling subsidiaries had total receivable subsidies for

improving international performance capability of RMB 103612900. On February 2 2026 the Company received

RMB 19000000 of such subsidies. As of the date of issuance of the audit report RMB 84612900 of subsidies for

improving international performance capability remained uncollected. The competent authority of such government

grants Qingdao Laoshan District Bureau of Agriculture and Rural Affairs has stated that the funds will be disbursed

in an orderly manner based on future fiscal fund conditions.

2.Liabilities involving government subsidies

Financial statement As at New in the Current Amount Other in the As at And assets

item 31/12/2024 current period account transferred to current period 31/12/2025 / revenue

Amount of Amount of other income in alteration correlation

subsidy non-operating the current

income period

Deferred income 53576277.76 2170000.00 - 2633323.85 - 53112953.91 asset-related

3. Government grants recognised in profit or loss for the current period

Item Amount due in 2025 Amount due in 2024

Other income 59370970.61 71904398.08

Total 59370970.61 71904398.08

XI. Related risks of financial instruments

1. The risk of the financial instruments

The main financial instruments of the Company include receivables other receivables payables and other payables

etc. For details of various financial instruments ssee Note VI. The goal of the company engaged in risk management

142Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

is to achieve an appropriate balance between risk and income reduce the negative impact of risk on the company's

business performance to a minimum level and maximize the interests of shareholders and other equity investors.Based on this risk management objective the basic strategy of the company's risk management is to determine and

analyze various risks faced by the company establish appropriate risk tolerance bottom line and conduct risk

management and timely and reliably supervise various risks and control the risks within a limited range.

(1) Credit risk

Credit risk is the risk of financial loss to the Company if the customers or counterparties to the financial instruments

fail to perform their obligations under the contracts.Credit risk mainly arises from accounts receivable from

customers.The carrying value of accounts receivable and notes receivable and other receivables is the maximum credit

risk of the Company for financial assets.

(2) Market risk

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

flow fluctuates due to the market price changes including the exchange rate risk interest rate risk and other price risks.The Company uses sensitivity analysis technology to analyze the possible impact of reasonable and possible changes

of market risk-related variables on the current profit and loss or shareholders' equity. Since any risk variable rarely

changes in isolation and the correlation between variables will have a significant effect on the final amount of impact

of a change in a risk variable the following is made assuming that the change of each variable is independent.* Exchange rate risk

Exchange rate risk refers to the risk that the fair value of financial instruments or the future cash flow fluctuates due

to changes in the foreign exchange rate. The foreign exchange risks faced by the Company mainly come from the

financial assets denominated in US dollars and the amount of foreign currency financial assets translated into RMB is

presented in VI.54 Foreign Currency Monetary Items.* Interest rate risk

Interest rate risk refers to the risk that the fair value of financial instruments or the future cash flow fluctuates due to

changes in the market interest rate. The interest rate risks faced by the Company mainly come from long-term bank

loans. The company's loans are floating interest rate and there is the risk of change in the RMB benchmark interest

rate.

(3) Liquidity risk

Liquidity risk is the risk that the Company meets its obligations related to financial liabilities. Under the case of normal

and tight funds the Company ensures that there is sufficient liquidity to fulfill the maturing debts and conducts

financing consultations with financial institutions to maintain a certain level of standby credit line to reduce liquidity

risk.XII. Related parties and transactions

1. The parent company of the Company

143Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Name of parent Registered Nature of business Registration The shareholding The proportion of the

company Address capital ratio of the parent voting rights of the

company in the parent company

Company

Shandong State- Shandong Investment and management 4.5 billion 47.25% 47.25%

owned assets Jinan asset management and capital

investment Co. Ltd operation entrustment

management investment

consulting

Note: State-owned Assets Supervision and Administration Commission of Shandong Provincial People's Government

is the ultimate controller of the Company.

2. Subsidiaries of the Company

Details of subsidiaries refer to Note IX. 1. Interests in other entities.

3. The Group's joint ventures and associates

Significant joint ventures or associates of the Group are detailed in Note IX.2。

Any other joint venture or joint venture that has a balance of related party transactions with the Group in the current

period or related party transactions with the Group in the previous period

The company situation is as follows:

Name of a joint venture or joint venture Relationship with the Group

Jinan Qini Food Technology Co. LTD Associated enterprise

4. Other related parties

Entity name Relationship

Dezhou Bank Co. LTD Controlled by the same parent company

Zhongtai Xincheng Asset Management Co. LTD Controlled by the same parent company

5. Transactions with related parties

(1) List of goods sold/services provided

Item Related party Current amount Amount incurred

transaction content in the previous

period

Ji Nan Qin Zhen Food Technology Co. Ltd. Tuna product 279267.40 187919.91

Shandong State-owned Assets Investment Holding Co. Ltd. Entrusted management 1698113.20 1698113.20

fee

Total 1977380.60 1886033.11

(2) Associated entrusted management/contracting and entrusted management/contracting

Entrusted management/contracting information of the company

Name of client Name of trustee Types of entrusted Commencement Trustee Custodial income Current

assets date termination date pricing basis recognized

Escrow income

144Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Name of client Name of trustee Types of entrusted Commencement Trustee Custodial income Current

assets date termination date pricing basis recognized

Escrow income

Shandong State- Shandong Stock right 2022/4/14 Contract 1698113.20

owned Assets Zhonglu ocean agreement

Investment fishing Co. LTD

Holding Co. LTD

(3) Key management compensation

Item Current amount Amount incurred in the previous

period

Key management compensation 4256788.00 3406277.00

(4) Other related transactions

Item Affiliated party Current amount Amount incurred

in the previous

period

Deposit interest income Dezhou Bank Co. LTD 273.46 4979.71

6. Receivables due from and payables due to related parties

* Accounts receivable

Item Related party Ending Balance Initial Balance

Balance Allowance for credit Balance Allowance for

losses credit losses

Accounts receivable Jinan Qini Food Technology Co. 138262.40 6913.12 139828.40 7814.97

LTD

Other receivables Zhongtai Xincheng Asset 1800000.00 90000.00 1800000.00 90000.00

Management Co. LTD

Other receivables Shandong State-owned Assets 372858.72 18642.94

Investment Holding Co. LTD

* Payable items

Item Related party Ending Balance Initial Balance

Balance Allowance for credit Balance Allowance for credit

losses losses

Dividends receivable Zhongtai Xincheng Asset 5234835.31 3311799.62

Management Co. LTD

ⅩⅢ. Commitments and contingencies

1. Commitments

None.

145Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

2. Contingencies

None.XIV. Post balance sheet events

1. Significant non-adjustment events after balance sheet date

None.

2. Distribution of profit

None.XV. Other significant events

1. Pension scheme

According to relative laws regulations and policies the pension system of the company has been established to pay

supplementary endowment insurance for employees (namely enterprise annuity) on the basis of attending primary

endowment insurance lawfully. The company has set the operating efficiency coefficient in accordance with the actual

operating conditions every year and calculated the total amount paid by the enterprise through it. In the enterprise

pension the borne expenses of the company have been disclosed in the case of employee pay payable and the

condition of the established escrow plan and the individual cost has been paid by the company from their salary. This

year the enterprise pension has been increased RMB 265.99 million relevant information shall be referred to "Note

VI.23 Employee Benefits Payable".

2. Segment reporting

(1) Determination basis of segment reporting and related accounting policy

The company’s mainly business are oceanic fishing aquatic products processing vessels leasing and others. The

company disclosure the branches reports by the character and plate of its main business.

(2) Financial information of segment reporting

Item Oceanic fishing Refrigerated Aquatic products Others Elimination Total

transportation processing and between branches

refrigeration

Operating income 736075102.47 139342956.86 725364789.37 463598.89 -125435326.69 1475811120.90

Operating cost 693406658.79 105228797.32 682201281.19 397092.62 -125435326.69 1355798503.23

Credit impairment -16417301.44 -229119.37 -769211.91 2159.05 -17413473.67

losses

Impairment of -17361237.59 -5546632.10 -22907869.69

assets

Depreciation and 63825257.85 16512369.68 6561304.12 5115402.06 92014333.71

amortization

Profit before tax 19871172.54 24269390.97 26462284.83 -25348839.90 18169.45 45272177.89

Income tax 0.00 53112.33 2782410.87 4751.60 2840274.80

expenses

Net profit 19871172.54 24216278.64 23679873.96 -25353591.50 18169.45 42431903.09

Total assets 1252234087.64 337919399.07 527005596.04 1224618505.43 -1173564493.24 2168213094.94

146Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Oceanic fishing Refrigerated Aquatic products Others Elimination Total

transportation processing and between branches

refrigeration

Total liabilities 517234559.89 72065658.44 147942265.94 859680298.51 -787048630.97 809874151.81

XVI. Notes to major items in the parent company's financial statements

1. Accounts receivable

(1) Aging disclosure

Aging Ending book balance Opening book balance

Within 6 months 6986938.33 371704.92

6 months-1 years 150000.00

1-2 years

2-3 years

More than 3 years 5689018.01 5689018.01

Total 12825956.34 6060722.93

(2) Accounts receivable by provision method for allowance credit losses

Item Ending Balance

Balance PCT Allowance for credit PCT Carrying amount

losses

Individually assessment subject to - - - - -

allowance for credit losses

Grouping assessment subject to 12825956.34 100.00% 6053364.93 47.20% 6772591.41

allowance for credit losses

Group 1: Non-affiliated party 12825956.34 100.00% 6053364.93 47.20% 6772591.41

customer portfolio

Group 2: Combination of related - 0.00% - - -

parties

Total 12825956.34 100.00% 6053364.93 47.20% 6772591.41

(Continued)

Item Initial Balance

Balance PCT Allowance for credit PCT Carrying amount

losses

Individually assessment subject to - - - - -

allowance for credit losses

Grouping assessment subject to 6060722.93 100.00% 5707603.26 94.17% 353119.67

allowance for credit losses

Group 1: Non-affiliated party 6060722.93 100.00% 5707603.26 94.17% 353119.67

customer portfolio

Group 2: Combination of related - 0.00% - - -

parties

Total 6060722.93 100.00% 5707603.26 94.17% 353119.67

Group 1: Accounts receivable due from non-affiliated party customer portfolio:

Aging Ending Balance

147Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Balance Allowance for PCT

credit losses

Within 6 months 6986938.33 349346.92 5.00%

6 months-1 years 150000.00 15000.00 10%

1-2 years - -

2-3 years - - -

More than 3 years 5689018.01 5689018.01 100.00%

Total 12825956.34 6053364.93

(Continued)

Aging Initial Balance

Balance Allowance for PCT

credit losses

Within 6 months 371704.92 18585.25 5.00%

6 months-1 years - - -

1-2 years - - -

2-3 years - - -

More than 3 years 5689018.01 5689018.01 100.00%

Total 6060722.93 5707603.26

(3) Allowance for credit losses

Item Initial Balance Amount of change in the current period Ending Balance

Provision Recovery or Write off Others

reversal

Accounts 5707603.26 345761.67 - - - 6053364.93

receivable

Total 5707603.26 345761.67 - - - 6053364.93

(4) Account receivables and contractual assets in the top five closing balances collected by defaulter

Name of the company Ending balance of Ending balance of Ending balance of Proportion of the Ending balance

accounts receivable contract assets accounts total amount of allowance for

receivable and doubtful

contract assets accounts

A 4902012.64 - 4902012.64 38.22% 245100.63

B 1545161.37 - 1545161.37 12.05% 77258.07

C 3600962.12 - 3600962.12 28.08% 3600962.12

D 494464.38 - 494464.38 3.86% 24723.22

E 430625.10 - 430625.10 3.36% 430625.10

Total 10973225.61 - 10973225.61 85.57% 4378669.14

2. Other receivables

Item Ending Balance Initial Balance

Interest receivable

Dividends receivable 26199905.76 35932821.99

Other receivables 186581184.21 154348571.29

Total 212781089.97 190281393.28

148Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

(1) Dividends receivable

* Classification and disclosure of dividends receivable

Item Ending Balance Initial Balance

Subsidiary dividend 26199905.76 35932821.99

Less: Allowance for credit losses - -

Total 26199905.76 35932821.99

(2) Other receivables

* Aging analysis of other receivables

Aging Ending book balance Opening book balance

Within 6 months 103771598.81 103153829.72

6 months-1 years 29978544.25 10453343.64

1-2 years 31941978.87 19798789.92

2-3 years 5449355.66 19724559.51

More than 3 years 32493625.82 13009773.80

Total 203635103.41 166140296.59

* Category of other receivables by nature

Nature Ending book balance Opening book balance

Intra-company transaction 157404302.58 136748535.22

Imprest funds and others 46230800.83 29391761.37

Total 203635103.41 166140296.59

* Classified disclosure according to bad debt provision method

category Ending Balance

Book balance scale Bad debt reserve Provision ratio Book value

Provision for bad debts on an 6936767.11 3.41% 6936767.11 100.00% -

individual basis

Provision for bad debts on a portfolio 196698336.30 96.59% 10117152.09 5.14% 186581184.21

basis

Including：Aging portfolio 46230800.83 22.70% 10117152.09 21.88% 36113648.74

Combine related party 150467535.47 73.89% - - 150467535.47

combinations

Total 203635103.41 100.00% 17053919.20 8.37% 186581184.21

(continue)

Item Initial Balance

Book balance scale Bad debt reserve Provision ratio Book value

Provision for bad debts on an 6936767.11 4.18% 6936767.11 100.00% -

individual basis

Provision for bad debts on a portfolio 159203529.48 95.82% 4854958.19 3.05% 154348571.29

basis

Including：Aging portfolio 29391361.37 17.69% 4854958.19 16.52% 24536403.18

149Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Item Initial Balance

Book balance scale Bad debt reserve Provision ratio Book value

Combine related party 129812168.11 78.13% - - 129812168.11

combinations

Total 166140296.59 100.00% 11791725.30 7.10% 154348571.29

1) Allowance for doubtful accounts provided on an individual basis：

Item Ending Balance

Carrying Amount Provision for Bad Provision Rate Reasons for

Debts Accrual

YAW ADDO FISHERIES COMPANY LIMITED 6936767.11 6936767.11 100.00% YAW payment for

vessel purchase:

The vessel has

been

disassembled and

YAW is unable to

pay the amount

due. Hence a bad

debt provision has

been made.Total 6936767.11 6936767.11 100.00%

2) Provision for bad debts on a portfolio basis

Combined itemization：Aging portfolio

name Ending Balance

Book balance Bad debt reserve Provision ratio

0-6 months 24731184.05 1236559.20 5.00%

6 months. - 1 year 89427.07 8942.71 10.00%

1 to 2 years 17887848.97 5366354.69 30.00%

2 to3 years 34090.52 17045.27 50.00%

More than 3 years 3488250.22 3488250.22 100.00%

Total 46230800.83 10117152.09（continue）

name Initial Balance

Book balance Bad debt reserve Provision ratio

0-6 months 25043636.86 1252181.84 5.00%

6 months. - 1 year 634980.31 63498.03 10.00%

1 to 2 years 206005.85 61801.76 30.00%

2 to3 years 59323.58 29661.79 50.00%

More than 3 years 3447814.77 3447814.77 100.00%

Total 29391761.37 4854958.19

150Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

* The provision of allowance for credit losses

The allowance for credit losses Stage one Stage two Stage three Total

12-month ECL Lifetime ECL Lifetime ECL

(credit - (credit-impaired)

unimpaired)

Beginning balance 1407143.42 - 10384581.88 11791725.30

Revaluation of beginning balance 1407143.42 - 10384581.88 11791725.30

Provision 5221758.45 - 40435.45 5262193.90

Reversal - - -

Charge off - - -

Write-off - -

Other changes - - -

Ending balance 6628901.87 - 10425017.33 17053919.20

* Allowance for credit losses

Item Initial Balance Amount of change in the current period Ending Balance

Provision Recovery or Write off Exchange impact

reversal

Allowance for 11791725.30 5262193.90 - - - 17053919.20

credit losses of

other receivables

Total 11791725.30 5262193.90 - - - 17053919.20

* Other receivables due from the top five debtors are as follows:

Name of the unit Nature of Ending Balance Aging As a percentage of Ending balance of

payment the total amount allowance for

credit losses

LAIF. FISHERIES. COMPANY Current account 70624026.75 Within 1 year 34.68% -

LIMITED

Shandong Zhonglu Haiyan Ocean Current account 40410113.50 Within 1 year 1–3 19.84% -

Fishery Co. Ltd. years

Qingdao Laoshan District Bureau of Government 39758735.00 0–6 months 1–2 19.52% 6440958.00

Agriculture and Rural Affairs grant receivable years

YAW ADDO FISHERIES Current account 11083500.71 Within 1 year 1-3 5.44% -

COMPANY LIMITED years or more

Shandong Zhonglu Aquatic Shipping Current account 8279334.72 1-3 years or more 4.07% -

Co. Ltd.Total 170155710.68 83.55%

151Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

3. Long-term equity investments

Item Ending Balance Initial Balance

Balance Provision Carrying amount Balance Provision Carrying amount

for impairment for impairment

Investment to 328189455.23 328189455.23 328189455.23 328189455.23

subsidiaries

Total 328189455.23 328189455.23 328189455.23 328189455.23

Investment to subsidiaries

Investee Initial Balance Additions Reductions Ending Balance

HABITAT INTERNATIONAL 12476145.60 - - 12476145.60

CORP.Shandong Zhonglu Oceanic Fisheries 22869513.38 - - 22869513.38

Transportation Co. Ltd.Shandong Zhonglu Oceanic (Yantai) 55448185.24 - - 55448185.24

Food Co. Ltd.Shandong zhonglu Haiyan Oceanic 141395611.01 - - 141395611.01

Fisheries Co. Ltd.Zhonglu Ocean (Qingdao) Industrial 96000000.00 - - 96000000.00

Investment Development Co. Ltd.Total 328189455.23 - - 328189455.23

4. Operating income and operating costs

(1) Operating income and operating costs

Item Year ended 31/12/2025 Year ended 31/12/2024

Income Cost Income Cost

Primary operating business 326925080.02 306754412.39 365145627.80 337377622.64

Other operating business 7528623.53 3525898.68 7967752.33 3144057.83

Total 334453703.55 310280311.07 373113380.13 340521680.47

(2) The income generated by the contract

* Current operating income is classified according to the time of revenue recognition

Classification of Product sales revenue Other business income total

contract Operating income Operating cost Operating income Operating cost Operating income Operating cost

Confirm at a 326925080.02 306754412.39 - - 326925080.02 306754412.39

certain point

Confirm within a - - 1698113.19 - 1698113.19 -

certain period of

time

Total 326925080.02 306754412.39 1698113.20 - 328623193.21 306754412.39

* Income from applicable lease criteria

Item Rent Rental and others Total

152Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Operating income Operating cost Operating income Operating cost

Income from main business

Other business income 5830510.34 3525898.68 5830510.34 3525898.68

Total 5830510.34 3525898.68 5830510.34 3525898.68

5. Investment income

Item Year ended Year ended

31/12/202531/12/2024

Gain/(Loss) from long-term equity investments in cost method 31522678.67 18183814.22

Bill discounting expenses - -100548.20

Total 31522678.67 18083266.02

XVII. Supplementary information

1. Details of non-recurring gain or loss for the year

Item Amount Remark

Disposal of profits and losses of non-current assets including the offset part of the asset -2189178.62 -

impairment provisions

The government subsidies included in the current profit and loss except the government subsidies 3612270.61 -

that are closely related to the normal operation of the company conform to the national policies

and regulations are enjoyed according to the determined standards and have a sustained impact

on the company's profit and loss

In addition to the effective hedging business related to the normal operation of the Company the -

gains and losses arising from the fair value changes caused by the holding of financial assets and

financial liabilities and the gains and losses generated by the disposal of financial assets and

financial liabilities

Custodian fee income obtained from the entrusted operation 1698113.19 -

Other non-operating income and expenses other than the above items 210442.94 -

Deduct: Income tax impact 243495.76 -

The impact of minority shareholders' equity 51577.75 -

Total 3036574.61 -

Note: In accordance with the Notice on Implementing the 2021 Fishery Development Subsidy Policy (Document No.Nongban Jicai [2021] No. 24) and the Notice on Implementing 2025Agricultural Industry Development Fund Projects

Related to Distant-Water Fisheries (Document No. Nongyu Yuanhan [2025] No. 81) the Company received a

government grant of RMB 55758700 this year to enhance international performance capabilities. As of December 31

2025 no such subsidy has been received. Since this grant is directly associated with the Company’s performance rating

and fishing vessel operating hours and is calculated based on parameters including the Company’s performance rating

and fishing vessel operating hours according to the rates set by relevant national and provincial authorities it has not

been presented as non-recurring profit or loss.

2. Return on equity and earnings per share

Profit in report period Weighted average return on Earnings per share

equity Basic earnings per Diluted earnings

share per share

Net profit attributable to the common share holders 3.11% 0.13 0.13

153Full text of the annual report of 2025 Shandong Zhonglu Oceanic Fisheries Co. Ltd.

Profit in report period Weighted average return on Earnings per share

equity Basic earnings per Diluted earnings

share per share

Net profit attributable to the common shareholders after deducting 2.82% 0.11 0.11

non-recurring gain or loss items

154