Summary of 2024 Annual Report of Muyuan Foods Co., Ltd.

I. Important Notes

This summary is abstracted from the 2024 Annual Report of Muyuan Foods Co., Ltd. Investors may refer to the full text of the reportthrough the media designated by the China Securities Regulatory Commission (CSRC) for further details of the business performance,financial situation and future development plans of Muyuan Foods Co., Ltd. (hereinafter referred to as the “Company”).This summary has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between thetwo versions, the Chinese version shall prevailAll directors attended the board meeting on which this report was reviewed.Notes on non-standard audit opinion

□ Applicable ?Not Applicable

Preliminary plan for profit distribution or capitalization of reserves in the reporting period as deliberated by the board?Applicable □Not ApplicableCapitalization of reserves or not

□Yes ?No

The preliminary plan for profit distribution, as approved by the Company’s board of directors, decides to distribute a cash dividend of

5.72yuan (tax included) for every 10 shares to all shareholders, on the basis of the total share capital on the date of equity registrationwhen the distribution plan is implemented in the future, with a total dividend of 3,082,880,394.31yuan (tax included), 0 bonus shares(tax included), and no capitalization of reserves. The shares of the Company held by the Company through a dedicated account forrepurchase enjoy no right to participate in profit distribution. If the total share capital of the Companychanges before the implementationof this distribution plan due to share repurchases, convertible bond conversions, or the listing of new shares through refinancing, theprofit distribution ratio will be adjusted while keeping the total distribution amount unchanged.Profit distribution plan of preferred shares during the reporting period as approved through the resolution of the board of directors

□Applicable ?Not Applicable

II. Basic Information of the Company

1. Company Profile

2. Introduction to Main Businesses or Products during the Reporting PeriodI. Industry situations during the reporting period(I) Pig farming

1. China is the largest pork production and consumption country in the worldData from the National Bureau of Statistics of China (NBSC) shows that China’s live pig output was

702.56 million heads in 2024, decreased by 3.3% compared to the previous year. As of the end of2024, the national inventory of reproductive sows and live pigs were 40.78 million heads and 427.43million heads, a decrease of 1.6% and 1.5% from the previous year, respectively.

(Data source: NBSC)China is the largest pork producer in the world. It’s estimated, based on the data released by the U.S.Department of Agriculture (USDA), that China's pork production in 2024 accounted for 49% ofglobal production, ranking first in the world.

(Data source: USDA)China is also the largest pork consumption country in the world. Pork is the most important source ofanimal protein for Chinese people, and has long been dominant in meat consumption in China.According to data from the NBSC, China's pork production in 2024 was 57.06 million tons,accounting for 59.05% of the main livestock and poultry meat production.

(Data source: NBSC)

2. Pig price trend

The fluctuation of pig supply is the main factor affecting pig price. As a result of the continuous

removal of excessive production capacity in the early stage, pig supply in 2024 decreased year-on-year, and the price of live pigs went up first and then fell. In the first quarter of 2024, pig price stayedlow in the Chinese market, keeping the industry in loss. However, with the removal of excessiveproduction capacity since the second quarter, an improvement of the supply-demand relation achieved,which led to a continuous increase of pig price. In August, the pig price reached a high point for theyear, but then fluctuated downwards. Looking at the whole year, the average price of live pigs in 2024experienced a year-on-year increase and was above the cost line of the industry, turning losses intoprofits for the pig industry. The data from the Ministry of Agriculture and Rural Affairs of the People'sRepublic of China (MARA) shows that the profit from marketed pigs in 2024 was 214 yuan per head,an increase of 290 yuan compared to 2023.

(Data source: MARA)

3. Revision of capacity regulation policy

The stable production and supply of pigs must be supported by a solid fundamental productioncapacity. Since the issuance of the “Implementation Plan for the Regulation and Control of HogProduction Capacity (Interim)” in September 2021, various regulations had been implementedsteadily and relevant response mechanisms had gradually been established and applied. With thecontinuous improvement of pig production efficiency, pork consumption tended to be stable. Thenormal sow inventory and its fluctuation range, as well as the measures for regulating capacity

downward, set in the previous regulation scheme were further modified.In March 2024, MARA released the “Implementation Plan for the Regulation and Control of HogProduction Capacity (2024 Revision)”, which adjusted the national target of the normal inventory ofreproductive sows from 41 million heads to 39 million heads and adjusted the lower limit for normalfluctuation of the reproductive sow inventory from 95% to 92% of the normal inventory. To guide theorderly reduction of pig production capacity, the MARA also guided provinces to revise theirregulation and control plans accordingly and fully implement the relevant measures.Guided by such clear regulatory signals, the pig production capacity received an effective control. Asof the end of April, the national inventory of reproductive sows dropped to 39.86 million heads, 1.56million heads less than the inventory at the end of 2023, bringing the capacity back to the green andreasonable range. In the second half of 2024, producers, facing good profitability, generally remainprudent and rational, and the national inventory of reproductive sows were still kept in the green andreasonable range. As of the end of December 2024, the national inventory of reproductive sows was

40.78 million heads, which is close to 105%, the upper limit of the green and reasonable range ofcapacity regulation.

(Data source: MARA)

4. Continuously improved pig farming scale

China’s pig farming industry has long been dominated by scatter feeding production, with a lowindustry concentration. There are a large number of backyard households and small- and medium-sized farms. In recent years, intensive pig farming and the industry concentration ratio in China havebeen in the rise. The industry is moving towards high-quality development to better satisfy people’sincreasing demands for high-quality pork. In 2024, large-scale pig farming in China continued toimprove. The application of advanced technologies and equipment for standardized and intelligentproduction was sped up, driving the overall quality improvement of the industry. The MARAestimated that the proportion of large-scale pig farming (with an annual hog output of over 500 heads)in China exceeded 70% in 2024, an increase of approximately 2 percentage points year-on-year.According to the current available public data, China’s top 10 listed pig farming companies providedabout 155.77 million pigs in total in 2024, accounting for about 22% of the total national output,showing an increase over 2023.

5. Cost reduction and efficiency improvement have been the main development trends of theindustryIn 2024, the industry costs continuously decreased. One driving factor was the price of feedingredients. The proportion of feed cost in pig farming costs is about 55% - 65%. In 2024, the pricesof corn, wheat, and soybean meal overall showed a downward trend, driving down the productioncosts for practitioners.

(Data source: NBSC)Another driving factor is that, with the continuous improvement of pig farming technology andintensive production, the production efficiency of the industry was gradually increasing. In recentyears, the industry has shifted from a high-speed development stage driven by capital to a high-qualitydevelopment stage driven by cost. The cost leadership has become the core competitiveness ofdevelopment in the industry. In 2024, with increased pig prices and profits, the production andoperation conditions of practitioners gradually improved. Against this backdrop, capacity expansionslowed down and emphasis was placed on improving production efficiency. Cost reduction andefficiency improvement were made through technological innovation and improving internalmanagement, which enhanced the ability to resist the risks of pig price fluctuations.(II) Pig slaughteringAs an indispensable and important link of the pork industry chain, the pig slaughtering sector involvespurchasing live pigs and selling pork products such as carcasses and pork cuts that yielded fromslaughtering to the downstream. At present, the actual utilization rate of slaughter capacity in large-scale Chinese enterprises is not saturated, and the overall market concentration of pig slaughtering isrelatively low. To strengthen the management of pig slaughtering and ensure food safety, relevantdepartments of Chinese government have taken various measures to promote the transformation andupgrading of the industry. In 2023, the MARA released the "Three-Year Action Plan for Strict

Standard Conformance, Promoted Improvement, and Ensured Safety in Livestock and PoultrySlaughtering", which stated that "By implementing the three-year action plan, it aims to, by 2025,further optimize the layout of livestock and poultry slaughtering in China, make slaughtering capacityconcentrated in the main farming areas, ensure a much higher matching degree between slaughteringand farming capacities, have the utilization rate of slaughtering capacity and industry concentrationsteadily increased, and significantly improve the level of standardization, mechanization, andintelligentization of livestock and poultry slaughtering. To accelerate industry transformation andupgrading, MARA issued the "Quality Management Standards for Pig Slaughtering" on January 1,2024, which clarified specific requirements for designated pig slaughterhouses.Driven by relevant policies and technological advancements in the industry, China's slaughteringindustry is in a stage of rapid integration and development. According to data from the MARA, theslaughter volume of designated pig slaughtering enterprises of designated size in China increasedfrom 191.16 million heads (accounting for 35.13%) in 2019 to 337.73 million heads (accounting for

48.07%) in 2024, indicating a continuous increase in industry concentration. With the improvementof consumer standards and increasing demand for meat products, China's pig slaughtering industrywill embrace large-scale, automatic, and intelligent development.

(Data source: MARA)II. Main Businesses of the Company during the Reporting Period(I) Summary of the Company’s operationIn 2024, the Company sold 71.602 million heads of pigs, including 65.477 million heads ofcommercial pigs (of which, 12.565 million heads were sold to the wholly-owned subsidiary MuyuanMeat Co., Ltd. and its subsidiaries), 5.659 million heads of piglets, and 465 thousand heads ofbreeding pigs. It also slaughtered 12.5244 million heads of pigs and sold fresh and chilled porkproducts of 1.4159 million tons.As a result, the Company achieved an operating revenue of 137.947 billion yuan in 2024, a YoYincrease of 24.43%; with the revenue attributable to slaughtering and meat processing was 24.274billion yuan, a YoY increase of 11.03%; and the net profit was 18.925 billion yuan, a YoY increaseof 554.07%. As of the end of 2024, the Company has 312 wholly-owned and holding subsidiaries,which are distributed in 25 provincial-level administrative regions across China.The year 2024 witnessed the Company’s persistence in high-quality development. It continuouslypromoted the construction of supporting facilities for pig farms, improved the infrastructures forbiosecurity, and strengthened the cost-control ability of pig farming. The Company made continuousefforts in pig health and production management for implementing more refined management andimproving pig farming performance. Under the combined effect of improved production performanceand decreased feed prices, the full cost of pig farming in the Company decreased to around 13 yuan/kgby the end of 2024, and the whole-year full cost of pig farming was about 14 yuan/kg. In the future,with further investment in fields including disease prevention and control, nutritional formula, pigbreeding, intelligentization, informatization, and talent development, as well as continuousoptimization in all links of production and management, the Company's production efficiency will begradually improved, and the full cost of pig farming is expected to be further reduced.In 2024, the Company actively expanded its sales channels for slaughtering and meat business andcontinued to build a nationwide pork distribution network. As of the end of 2024, more than 70 servicestations for slaughtering and meat business were established in 20 provincial-level administrativeregions across China. The Company also continuously optimized its customer and product structure,

and improved its production efficiency and operational capability by increasing R&D investment indigitization and intelligentization. As a result, it’s meat business made a profit in December. In 2025,for the slaughtering and meat processing businesses, the Company will continuously improve itsoperation efficiency and rate of capacity utilization of slaughterhouses that have been put intooperation, and make efforts in fields including market development, channel building, talentdevelopment, and internal management, to enhance the profitability.In 2024, the company kept pace with the times. It took technology as its wings to break down theboundaries of industries and disciplines, integrated knowledge and technology from different fields,and continuously updated and iterated in intelligent equipment, breeding, nutrition, energymanagement, and other aspects. It continuously explored new technologies and processes to supportthe main business. In 2024, the Company invested 1.747 billion yuan in R&D and granted 1,764patents in total, to effectively play the role of scientific and technological innovation and cultivateand develop new quality productivity.In 2024, the Company adhered to the principle of green development. It took active actions such asreducing fossil energy consumption and developing new energies like solar photovoltaic (PV) powerto promote energy structure transformation and achieve the peak carbon and neutrality goals. TheCompany utilized the roofs of farms and slaughterhouses to construct distributed PV facilities. Wherethe power demand of each farm or slaughterhouse satisfied, the extra power was supplied to the grid.Through the development and utilization of green energy, the production cost was reduced. In 2024,the Company received 205 million kW·h of electricity by investing in PV facilities. In the future, theCompany will further optimize its energy structure, increase the usage of green power, and achievelow-carbon production and sustainable development.In 2024, the Company actively explored new environmental protection technologies and models forlivestock and poultry production. The Company's ammonia reduction and deodorization technologyhas been promoted by the Ministry of Ecology and Environment of the People’s Republic of China(MEE). Muyuan participated a program "Key Technology System and Application for Accountingand Control of Ammonia Emissions from Livestock and Poultry Production", which supports theconstruction of a national mechanism for reducing ammonia emissions from livestock and poultryproduction and seeks the organic unity of economic and ecological benefits. This program won the

second prize of the 2024 Environmental Protection Science and Technology Progress Award. TheCompany actively integrates into the national rural revitalization strategy and contributes the wisdomand strength of Muyuan to rural revitalization. By utilizing manure resources, it has established acircular economy model features “nourishing farmland by pig wastes and feeding pigs by cropplanting”. By implementing the crop-livestock cycle model, it helped reduce investment and increaseincome for farmers and promoted common prosperity.In 2024, to build a talent team that is younger, internationalized, and more professional, the HRDepartment of the Company carried out various activities to attract talent from colleges domesticallyand actively organized several overseas special recruitment activities for international students. Itestablished well an assessment mechanism to select and use talents and a talent pool cultivationmechanism to empower talents precisely and improve their professional competence and qualitiescontinuously. Through innovative mechanisms and optimized salary plans, it did well in managingemployee interests and stimulating employee vitality, to promote standardization measures. It'spersonnel administration mechanism provided employees with clear promotion channels. By doingso, it aims to give the right people full play in the right positions and meet the talent needs during theCompany's high-quality development.(II) Main businesses, products and their usesThe Company’s main businesses are the farming, sales, and slaughter of pigs. Its main productsinclude finished pigs, piglets, and breeding pigs, as well as pork products such as pork carcasses andpork cuts. As of the end of 2024, the Company's annual pig farming capacity was about 81 millionheads. It currently has 10 slaughterhouses put into operation, with an annual slaughtering capacity of29 million heads. All slaughtered pigs were sourced from the Company’s own farms.The Company adopts a vertically integrated business model and has formed a pork industrial chainthat integrates feed processing, pig breeding, pig raising, pig slaughtering, and meat processing,which covers the whole pig industrial value chain. The vertically integrated business model is helpfulfor the Company to carry out more strict control of costs and quality and ensure business results inan all-round way. The Company also follows the business model of independent pig farming andslaughtering, making the whole production process transparent, controllable and traceable, to ensurefood quality and safety and provide more high-quality pork products to customers.

The Company has its own feed mills to independently develop nutrition formulas and produce feedsto meet the needs of pigs of all stages, where feed formulas can be adjusted timely in accordance withthe changes in the raw grain market. A low-soybean diet technology has been applied to reduce theusage of soybean meals to control the feeding costs.The Company adopts the two-breed rotational crossbreeding system to select continuously andindependently and build its own nucleus herds, which is helpful to reduce the production costs anddisease risks. At the same time, the Company’s breeding pigs can satisfy both breeding use andfinishing use in terms of reproductive performance, growth rate, lean meat percentage, and carcassquality, which lays a foundation for the rapid development of the Company.The Company adheres to R&D innovations and the application of smart equipment. It hasindependently developed the fresh air filtration system, independent ventilation system, intelligentenvironment control system, intelligent feeding system, etc. A series of intelligent equipment operatein a collaborative manner. It aims to improve pig farming efficiency, lower pig farming costs, andpromote the transformation and upgrading of the industry through technology-led and innovation-driven development.

3. Main accounting data and financial indicators

(1) Main accounting data and financial indicators in the past three years

Whether the Company needs to make retroactive adjustments or restate the accounting data of previous years or not

□Yes ?No

Unit : yuan

(2) Main accounting data by quarter

Unit : yuan

Whether the above financial indicators or their total amount are significantly different from the related financial indicators disclosedin the Company's quarterly or semi-annual reports.

□Yes ?No

4. Share Capital and Shareholders

(1) The number of common shareholders and preferred shareholders with resumed voting rights and the shareholding of thetop 10 shareholders

Unit: share

Participation of shareholders holding more than 5% of the shares, top 10 shareholders, and top 10 shareholders of unlimited floatingstocks in share lending for refinancing

□Applicable ?Not Applicable

Changes over the previous period due to the share lending/returning for refinancing of top 10 shareholders and top 10 shareholders ofunlimited floating stocks

□Applicable ?Not Applicable

(2) Total number of preferred shareholders and the shareholdings of the top 10 preferred shareholders of the Company

□Applicable ?Not Applicable

There were no preferred shareholders holding shares of the Company during the reporting period.

(3) Ownership and control relations between the Company and the actual controllers

Note: Muyuan Group and its entrusted trust plan hold a total of 848,762,153 shares of the Company.

5. Bonds in existence as of the approval date of the annual report

?Applicable □Not Applicable

(1) Basic information of bonds

(2) Latest tracking bond ratings and changes

China Chengxin International Credit Rating Co., Ltd. (CCXI) issued the 2024 Tracking and RatingReport on Muyuan Foods Co., Ltd. (Credit Rating Entrustment Letter [2024] Tracking No. 1532) onJune 26, 2024. It maintained the Company's entity rating as AA+, rating outlook as Stable, andmaintained the debt rating of "Muyuan Convertible Bond" as AA+.

(3) Main accounting data and financial indicators in the past two years as of the end of the reporting period

Unit: 10,000 yuan

III. Significant MattersNot Applicable.