Table of Contents

Corporate GovernanceInvestor Rights ProtectionRisk ManagementBusiness EthicsTax Transparency

About Muyuan

ESG Managementand Strategy

ESG KeyAchievements

ESG MaterialityAssessment

Message from theChairman

About the Report01

Governance andLeadership

ESG Key Performance TableSASB Index TableGRI Index TableIndex Table of SHENZHEN STOCKEXCHANGE's Self-RegulatoryGuideline for Listed CompanyNo. 3 - Preparation of SustainableDevelopment ReportsTable of Industry Certi?cationsTable of Laws, Regulations andCompany PoliciesTable of Muyuan Green and Low-Carbon Crop-Livestock IntegrationBasesMuyuan Basic Law & Tribute to PigsFeedback Form

Employee Empowerment andDevelopmentOccupational Safety and HealthInnovation and IntellectualProperty ProtectionSustainable Supply ChainRural Revitalization and GivingBack to SocietyRespect and Protection of HumanRightsFood Safety and Consumer RightsAnimal WelfareAntibiotic Use Management

117Appendix

Addressing Climate ChangeLow-Carbon Actions across theValue ChainEnvironmental ManagementBiodiversity and Land UseWater ManagementWaste and Pollutant Management

Green Development andEcological Co-Prosperity

Responsible Actionin Practice

0102

This report aims to objectively and fairly reflect the philosophy, practices, and performance ofMuyuan Foods Co., Ltd. (stock code: 002714.SZ, hereinafter referred to as "Muyuan foods" "Muyuan""the Company" or "we") and its subsidiaries in the areas of environment, society, and corporategovernance for the year 2024. This is the 11th annual Environmental, Social, and Governance (ESG)report issued by the Company since its listing in 2014. We are also releasing the Green and Low-Carbon Action Report, which highlights Muyuan's efforts in green and low-carbon development.Together with this report, they form Muyuan's sustainability disclosure system, demonstratingour commitment to sustainable development and responding to the expectations and concerns ofstakeholders through e?ective communication.

About the Report

Unless otherwise specified, the disclosure scope of this report is consistent with that of the 2024Annual Report of Muyuan Foods Co., Ltd., encompassing Muyuan and its subsidiaries, and coveringthe period from January 1, 2024, to December 31, 2024. To enhance the continuity and forward-looking nature of the report content, some sections may extend beyond this time frame.

Report Scope

The information, data, and cases in this report are sourced from the company's public documentsand internal statistical records. Unless otherwise speci?ed, all monetary ?gures are denominated inChinese Yuan (CNY).Data Description

We closely monitor the potential impacts of ESG issues on the Company's development and activelyprepare for future challenges. In addition to historical facts, this report contains forward-lookingstatements, including projections and future plans. Actual outcomes may di?er from those expressedor implied, due to various uncertainties.

Forward-looking Statements

This report is prepared in accordance with mainstream ESG disclosure frameworks. It integratesquantitative performance data with qualitative analysis to systematically present the Company'sinnovative practices, with the aim of fostering transparent communication and jointly creating valuewith stakeholders.

Preparation Basis

? The GRI Sustainability Reporting Standards (GRI Standards) issued by the Global SustainabilityStandards Board (GSSB)? The United Nations Sustainable Development Goals (UN SDGs)? The SASB Standards issued by the Sustainability Accounting Standards Board (SASB)? General Requirements for Disclosure of Sustainability-related Financial Information ( IFRS S1) andClimate-related Disclosures (IFRS S2) issued by the International Sustainability Standards Board (ISSB)? The TNFD Framework (Task Force on Nature-related Financial Disclosures)? Climate Disclosure Standards Board (CDSB) Water-related Disclosure Guidance

International Standards and Frameworks

? The Basic Standards for Corporate Sustainability Disclosure (Trial)issued by the Ministry of Finance of the People's Republic of China andother ministries? Self-Regulatory Guidelines for Listed Companies No. 3 - Preparationof Sustainability Reports, issued by the Shenzhen Stock Exchange? Chinese National Standard GB/T 36001-2015 Guidelines forPreparing Social Responsibility Reports? China Corporate Social Responsibility Reporting Guide (CASS ESG

6.0) issued by the Chinese Academy of Social Sciences

Domestic Standards and Frameworks

This report is available in both Simpli?ed Chinese and English. In theevent of any discrepancy or inconsistency between the two versions,the Simpli?ed Chinese version shall prevail.Language

This report is available in both printed and electronic formats. Theelectronic version can be accessed and downloaded from the CNINFOwebsite (www.cninfo.com.cn) and the Company's official website(www.muyuanfoods.com).

Report Availability

This report has been prepared following the principles of accuracy, balance, comparability, andcompleteness.Accuracy:The information in this report should be sufficiently accurate and detailed to allowstakeholders to assess Muyuan's performance in environmental, social, and governance (ESG)aspects.Balance:This report should present both the positive and negative impacts of the company,objectively and fairly describing its ESG performance to allow stakeholders to comprehensivelyevaluate its results.Comparability:The data in this report should adopt consistent statistical methods with previousyears to facilitate analysis and comparison; any deviations have been explained accordingly.Completeness:This report should cover all significant issues related to the company's ESGperformance, ensuring the disclosure of all key factors affecting the organization's sustainabledevelopment.

Reporting Principles

0202

0304

Message from the Chairman

air-?ltered pig barn by Muyuan can adjust key indicators such as temperature, humidity, and air quality withinthe barn, creating a healthy and comfortable environment for pigs year-round. This significantly enhancesbreeding e?ciency and product quality.Disease control is a challenge in the pig farming industry. Training an excellent veterinarian may take ?ve years,ten years, or even longer. Now, Muyuan's intelligent inspection robot work around the clock, observing pigdiseases in real-time, enabling early prevention and timely intervention to ensure the health of the pig herdwhile reducing the workload for our employees.In the era of intelligence, there is immense potential for improvement in China's animal husbandry industry. Weaim not only to provide pigs with an environment as pleasant as spring all year round but also to innovate andapply more smart equipment in the future. Gradually, we'll free our employees from complex mental tasks andheavy physical labor, transforming them into supervisors and operators working behind the scenes. This willmake pig farming easier and elevate it into a respected profession.

Muyuan leads development through innovation and is committed tomaking pig farming easier. The independently developed intelligent

Technology Innovation Makes Pig FarmingEasier

Muyuan is firmly implementing carbon reduction initiatives across its entire value chain. In 2024, Muyuanachieved greenhouse gas emission reductions equivalent to 5.2914 million tonnes of CO

e, with an emissionintensity of 1.461 tonnes CO

e per tonne of product, maintaining an industry-leading position. Throughtechnologies such as the Crop-Livestock cycle, replacing soybean meal with amino acids, unheated pig houses,and air ?ltration, we have signi?cantly reduced carbon emissions. We have also achieved ammonia reduction,deodorization, and minimal disturbance to surrounding communities. Meanwhile, we have actively promotedbiogas-based heating, biogas power generation, and distributed photovoltaic power generation, furtherreducing energy consumption. These innovative practices fully demonstrate that carbon reduction e?orts caninject new momentum into the sustainable development of enterprises.

Green Development: Setting a New industry Standard

Muyuan is dedicated to enabling every employee to lead a fulfilling life in Muyuan. In 2024, we introducedinnovations to our incentive mechanisms, achieving notable results. The salaries of outstanding pig-raisingworkers doubled, reaching 20,000–30,000 yuan per month, while the average annual salary across allemployees reached 125,300 yuan. These outcomes re?ect the signi?cant value of mechanism innovation-higheremployee income, lower production costs, and better product quality, creating an inspiring win-win situation.

Mechanism Innovation: Enabling a Ful?lling Life for Employees

Muyuan has been fully utilizing its industry leadership to empower farmers by sharing resources, technology forco-creation, shared bene?ts, and common growth.The Crop-Livestock cycle boosts farmers' income. In 2024, Muyuan's services covered 4.7208 million mu(approximately 314,877 hectares) of farmland through the Crop-Livestock cycle, increasing farmers' incomes by

1.353 billion yuan. Over the past ?ve years,Muyuan has helped farmers reduce investment and increase income

by over 5 billion yuan in total, e?ectively bene?ting and enriching farmers. The Company has established ateam of over 300 agronomists who provide on-site agricultural guidance to help farmers improve their plantingskills.Industrial interconnection for co-creation and sharing: Muyuan, by building an industry-sharing platform,collaborate with pig farmers through sharing information, technologies, and resources. In 2024, we supplied

6.124 million breeding pigs and piglets to the industry, facilitating the specialized development of 6,334

farms/households, with collective income reaching nearly 2 billion yuan. Muyuan focuses on the mostcomplex segments of the value chain, enabling farmers to concentrate on simplified tasks, thus achievingcomplementary and win - win results, as well as connecting with and supporting farmers.

Connecting and Supporting Farmers for Co-creation, Shared Bene?tsand Common Growth

In the breeding stage, our innovative genetic selection system for breeding pigs has shortened the selectioncycle, reduced costs, and improved adaptability and performance. This has laid a solid foundation for theproduction of high-quality, a?ordable pork.At the same time, we have established a comprehensive disease prevention and control system as well as afood safety management system, ensuring pork quality control from the source and guaranteeing food safety.In addition, we plan to invest 6 billion yuan in building a super-healthy breeding pig selection platform.This platform will boost gene expression e?ciency to 90%–95%, signi?cantly improve the accuracy of breedselection reduce interference factors, and have profound implications for classical breeding, quantitativegenetic breeding, and molecular breeding. It will also contribute to achieving independent control over thebreeding pig selection in China.

Product innovation: Producing High-Quality pork

In 2024, industries faced significant challenges, yet intelligenttechnology and green development have discovered greateropportunities and space for us.Over the past 32 years, Muyuan has embraced sharing and innovativegrowth, consistently adhering to its core values of "creating value andserving society." We have continued to put efforts into technologicalinnovation, product innovation, institutional innovation, greendevelopment, and supporting farmers with partnerships, driving high-quality development within the pork industry.

Looking back, every step in Muyuan's journey has beensupported by trust and encouragement from all sectors ofsociety. Looking ahead, we will remain ?rmly committed to high-quality, sustainable development-creating value for shareholders,happiness for employees, and bene?ts for society at large.

Chairman

0506

About MuyuanCompany Culture

Producer of high-quality pork and promoter of social progress.Who WeAre

To produce safe and healthy pork products for the public; to advance healthy

industry development.OurMission

To serve people with wholesome pork for their enjoyment in an abundant life; to

make the company respected.OurVision

Revere nature, care for people, and act in accordance with the principles.Business

MottoCoreValues

Create value, serve society, be internally and externally upright, and promote

social progress.CulturalTheme

Strict self-discipline, courage to take responsibility, pursuit of excellence, and

service to society.ValueFormula

Creation -Possession = Value.

Muyuan Value FormulaMuyuan Breeding and Slaughter Operations Distribution Map

Company Introduction

Founded in 1992, Muyuan Foods Co., Ltd. was listed on the Shenzhen Stock Exchange in 2014. After 32 years ofinnovative development, the Company has formed a pork industry chain integrating feed processing, selectionof breeding pig, commercial pig farming, slaughtering, and meat processing. As of the end of 2024, Muyuan'sbusiness footprint extended across 25 provincial-level administrative regions, 109 cities, and 225 counties(or districts) in China, with a total of 312 wholly-owned and holding subsidiaries, and a workforce of 133,642employees. In 2024, Muyuan supplied 71.602 million live pigs to the market, slaughtered 12.524 million pigs,achieving an operating revenue of 137.947 yuan billion and a net pro? t of 18.925 billion yuan.Guided by its vision of "to serve people with wholesome pork for their enjoyment in an abundant life"Muyuan actively aligns itself with the United Nations Sustainable Development Goals (UN SDGs). With a ? rmfocus on the pork industry, the Company continues to enhance its Environmental, Social, and Governance (ESG)management and practices, driving the coordinated improvement of economic, environmental, and socialperformance, and contributing to the sustainable development of both the industry and broader society.

.

2024 Operating Revenue

billion CNY

18.925

2024 Net Pro? t

billion CNY

.

2024 Live Pigs Supplied

million heads

12.524

2024 Live Pigs Slaughtered

million heads

0708

Jun.Muyuan hosted a delegation from Alltech and held in-depth exchanges on ESG-related topics in agriculture and animal husbandry, working together to promote ESGbest practices globally.Muyuan participated in a biodiversity forum hosted by the Beijing Institute of GreenFinance and Sustainable Development, sharing its biodiversity protection practicesand promoting industry collaboration.Muyuan held in-depth dialogues with Fidelity International to discuss its ESGmanagement framework, board structure, employee welfare, environmental andenergy management, and deforestation risk.

ESG Milestones

Industry Standards Contribution in 2024

Research and Collaboration in 2024

Oct.

Muyuan contributed to drafting China's ?rst national standard for carbon emissionsaccounting in the livestock sector - Quantification Methods and Requirements ofProduct Carbon Footprint for Animal Products. This standard provides a criticalfoundation for carbon footprint measurement within the industry.

Jan.Muyuan submitted a written response to the FAIRR Initiative regarding biodiversityrisk assessment and action planning, specifically addressing the topic "Impact ofManure and Animal Waste on Water Quality and Biodiversity."

Nov.FAIRR Initiative's China Market Lead provided expert guidance on ESG topics tosupport Muyuan's sustainability e?orts.Dec.Muyuan shared its biodiversity initiatives at the China Sustainable Investment Forum(China SIF), contributing to best practices in the livestock and agriculture sectors.Muyuan hosted the Henan Provincial Clean Production Technology ExchangeConference for Livestock and Poultry, promoting green, circular, and low-carbondevelopment.Muyuan hosted the annual China Green Companies Alliance Seminar and"Green Space" event, collaborating with partners from various sectors to jointlypromote green development and collaboratively draws a new blueprint for futuredevelopment.

Honors and Awards in 2024Oct.Recipient of the 2024 WAFI Innovation Award.

Dec.Invited to the 17th International Conference onSustainability Reporting in China and honoredwith the GoldenBee 2024 Outstanding CorporateSustainability Report – Leadership Award.The case of Muyuan's "Innovating Green and Low-Carbon Technologies to Promote High-QualityDevelopment in Pig Farming" was honored as theXinhua Credit Golden Orchid Cup ESG ExcellentCase.Awarded Second Prize of the 2024 EnvironmentalProtection S&T Progress Award by the ChineseSociety for Environmental Sciences in recognition ofoutstanding achievements in green development.

Nov.Case study "Innovative Low-Carbon and Energy-Saving Technologies to Advance the CircularEconomy" selected as a 2024 Best Practice Case inSustainable Development for Listed Companies.Recognized as an Excellent Board Practice Case in2024.Named in the 2024 Golden Dawn ESG Best SocialImpact Contribution list by Securities MarketWeekly.Muyuan's risk rating was upgraded from "High Risk"to "Medium Risk" in the FAIRR Initiative's ProteinProducer Index, reflecting recognized progress insustainability.

Mar.Muyuan held a conference call with the FAIRR Initiative and key internationalinvestors to address stakeholder concerns related to waste and pollutionmanagement.May.Delegates from the China Collaborative Engagement Initiative (CCEI) visited Muyuanfor in-depth discussions on "Climate and Nature." The CCEI-Muyuan Working Group,jointly led by the FAIRR Initiative and China Asset Management Co., Ltd., was formallylaunched.

Sep.On behalf of the CCEI-Muyuan Working Group, Mr. Huang Changtong, China MarketLead at FAIRR Initiative, conducted a capacity-building session for Muyuan staff toenhance climate governance disclosure and ESG performance.Muyuan co-hosted the Swine Industry Development Conference with the ChinaAnimal Agriculture Association to share insights and jointly empower high-qualitydevelopment across the sector.

Oct.Muyuan collaborated with Westlake University to monitor greenhouse gas emissionfactors.

2024 WAFI Innovation Award

Xinhua Credit Jinlan AwardsESG Outstanding Case

0910

ESG Management and Strategy

Muyuan has established a comprehensive ESG governance framework that spans the decision-making, management, and execution levels. This framework facilitates the e? ective implementationof the ESG strategy, enhances overall ESG performance, and promotes collaborative developmentwith stakeholders.

ESG Governance Structure

The Board of Directors serves as the highest decision-making and supervisory body for the Company's ESGa? airs and oversees relevant matters in collaboration with its specialized committees.A Sustainability Committee, composed of both independent and non-independent directors, has beenestablished to oversee the implementation of the sustainability strategy and make decisions on materialESG issues. Its key responsibilities include reviewing ESG disclosures, supervising food safety and qualitymanagement, identifying and managing climate-related risks and opportunities, and receiving regularupdates on biodiversity and Water Management e? orts.The Audit Committee, under the Board of Directors, is responsible for overseeing anti-corruption and anti-bribery measures, as well as conducting risk assessments and audits.Looking ahead to 2025, the Board will further enhance its ESG governance by strengthening oversight ofWater Management, biodiversity, and employee health and safety.

Decision-making Level

Muyuan has established an ESG Office under the Sustainability Committee. The Office is composed offull-time sta? and key representatives responsible for material ESG topics from various departments. It istasked with executing speci? c initiatives related to sustainable development.The primary responsibilities of the ESG Office include coordinating and managing key material topics,setting ESG goals and monitoring progress, benchmarking against industry best practices, and developingplans to enhance ESG governance capabilities.

Management Level

The execution level consists of various subsidiaries and functional departments, responsible forimplementing the Company's ESG-related decisions based on their respective operational contexts,ensuring that ESG principles are e? ectively embedded throughout the organization.In day-to-day operations, the ESG Office works closely with implementation units to promote theimplementation of measures such as environmental protection, reduce greenhouse gas emissions, improvesafety management performance, support democratic management, publicize human rights policies, andstrengthen compliance and anti-corruption e? orts.

Execution Level

Muyuan ESG Governance Structure

Muyuan ESG Governance Structure

1112

Centered around the pork value chain and stakeholder expectations,Muyuan has established a clear ESG strategic positioning,including operating with integrity and compliance, ensuring food

ESG StrategicObjectives

ESG Strategic Objectives

ESGDimension

SDG Goals Objective

Governance

Establish a risk management system to ensure full coverage of keybusiness risk assessments every year.Maintain a 100% anti-corruption education and exam certi?cation ratefor new employees each year.Achieve a 100% signing rate for employee integrity and self-disciplinecommitment letters each year.Ensure a 100% resolution rate for reported corruption and briberycases each year.

Environment

Taking 2024 as the baseline year, the total greenhouse gas emissionintensity is expected to decrease by 1.5% in 2025 and by 20% in 2030.Achieve 100% resource utilization rate of manure annually, with noodor and no disturbance to residents.Taking 2024 as the baseline year, the water withdrawal intensity forfarming is expected to decrease by 0.2% in 2025 and by 18% in 2030.The green electricity substitution rate will reach 4% in 2025 and reach30% in 2030;The utilization rate of biogas will be increased to 20% in2025, and increased to 60% in 2030;The newly - added photovoltaic (PV)installed capacity will reach 800 MW in 2025 and 10 GW in 2030.Ensure 45% of soybean product procurement meets SSAP or zero-deforestation sustainability standards by 2025.

Social

Ensure no incidents of child labor or forced labor occur annually.Achieve 100% employee training coverage each year.Emphasize gender equality and support career development forfemale employees; ensure no discrimination incidents annually.Achieve 100% coverage of employee safety training and healthcheckups each year.Ensure the entire supply chain is transparent, controllable, andtraceable, with zero food safety incidents annually.Achieve a 100% signing rate for supplier integrity and honestyagreements annually.Ensure a 100% supplier procurement contract ful?llment rate annually.Achieve 100% supplier training coverage annually.

ESG Strategic ObjectivesESGDimension

TopicProgress in 2024

Governance

RiskManagement

Achieved.

BusinessEthics

Achieved.Achieved.Achieved.

Environment

GreenhouseGas Emissions

In Progress: Total greenhouse gas emission intensity is 1.461 tonnes of CO

eper tonne of product.Waste

Management

Achieved.WaterManagement

In Progress: Water withdrawal intensity for farming is 25.06 cubic meters per

tonne of product.EnergyManagement

In Progress: Green electricity substitution rate is 2%;Biogas utilization rate

is 14.7%, with greenhouse gas emissions reduced by 478.6 thousand tonnes

of CO

e;Total photovoltaic installed capacity is 588.90 MW, photovoltaic

power generation is 205,000 MWh, with greenhouse gas emissions reduced

by 108.4 thousand tonnes of CO

e.BiodiversityIn Progress: Sustainable soybean product procurement accounts for 40.37%.

Social

Labor RightsAchieved.EmployeesDevelopment

Achieved.Equality andInclusion

In Progress: Female employees account for 19.36%, female executives account

for 27%; no discrimination incidents.Health and

Safety

Achieved.Food SafetyAchieved.Supply ChainManagement

Achieved.

In Progress: Supplier procurement contract ful?llment rate is 99.58%.

In Progress: Supplier training coverage rate is 99.49%.

safety, promoting green and low-carbon development, achieving win-win cooperation, caring foremployees, and contributing to society. Based on this, the Company has identi?ed six key directionsfor sustainable development, actively aligned itself with the United Nations Sustainable DevelopmentGoals (SDGs) and set clear ESG targets to drive the e?ective implementation of its ESG strategy.

1314

ESG Key Achievements

Environmental Key Performance

Social Performance

In 2024, Muyuan supplied 71.602 million live pigs and 5.8 million tonnes of high-quality pork to society, meetingthe needs of over 100 million people.

71.602

2024 Pigs Slaughtered

million heads

Satis? ed the Pork Demand over

million persons

In 2024, through technological innovations such as low-soybean diets, unheated pig houses, integrated Crop-Livestock Cycle, and the development and utilization of new energy, Muyuan achieved greenhouse gas (GHG)emission reductions totaling 5.2914 million tonnes of CO

e, with a total GHG emission intensity of 1.461 tonnesof CO

e per tonne of product.

5.2914

Greenhouse Gas Emission Reduction Value

million tCO

e

1.461

Total Greenhouse Gas Emission Intensity

tCO

e per tonne of productAs of the end of 2024, Muyuan's total installed capacity of photovoltaic (PV) power reached 588.90 MW. In 2024,PV generation reached 205,000 MWh, reducing GHG emissions by 108,400 tonnes of CO

e.

205,000Photovoltaic Power Generation

MWh

108.4

Emission Reduction through Solar Power

thousand tCO

e

In 2024, 179 million cubic meters of liquid manure were returned to farmland, 3.875 million cubic meters ofmanure wastewater were reused, with a 100% resource utilization rate of manure, resulting in zero discharge,no odor, and no disturbance to surrounding communities. A total of 408.9 thousand mu (approximately 27,274hectares) of land was improved, including 318.2 thousand mu (approximately 21,224 hectares) of saline-alkaliland and 90.7 thousand mu (approximately 6,050 hectares) of deserti? ed land.

Manure Resource Utilization Rate

%

Bio-slurry Fertilizer Return to Field

million cubic meter

27,274

Land Improvement

hectares

INDICATORUnit202420232022

Number of Pigs Soldmillion heads71.60263.81661.201

Number of Pigs

Slaughtered

million heads12.52413.267.362Feed Productionmillion metric tonnes25.31923.1720.37Operating Revenuebillion CNY137.947110.861124.826

Net Pro? tbillion CNY18.925-4.16814.933

125.3

Average Annual Salary of Employees

thousand CNY12,121

Employee Shareholder

person-times

Muyuan shares the fruits of development with employees. A total of 12,121 participations have been recordedin the employee shareholding plan, and the average annual salary of employees in 2024 was 125,300 yuan.Muyuan prioritizes employee health and safety, with 150.56 million yuan invested in safety production in 2024,

In 2024, Muyuan served 4.7208 million mu(approximately 314,877 hectares) of farmland through integratedCrop-Livestock cycle, increasing farmers' income by 1.353 billion yuan.

314,877Serve farmland

hectares

1.353

Boost farmers' income

billion CNY

100,000

Create rural employment opportunities

+40,000

Encourage university graduates to engage in agriculture

+

Over 100,000 rural jobs were created, helping farmers transition into skilled pig-raising technicians andattracting more than 40,000 university graduates into the agricultural sector.

Through the "Gathering Love to Support Education" series of public welfare initiatives, Muyuan donated a totalof 434 million yuan, providing ? nancial assistance to 99.6 thousand university students and recognizing 35.4thousand outstanding educators. In public welfare infrastructure programs, a total of 107 million yuan wasdonated, bene? ting 1,792 villages. The volunteer team grew to 9,702 members, contributing a total of 71,852hours of service.

Cumulative Donations through “Ju'aiEducation Assistance”Series of Activities

million CNY

Cumulative Donations

Million CNY71,852Total Volunteer Service Hours

hours

In 2024, the Company further strengthened its governance of business ethics, achieving a 100% completion ratefor anti-corruption training and certi? cation for new employees, and a 100% signing rate for employee integritypledges.

Muyuan actively responded to stakeholder concerns, hosting over 100 investor engagement events andparticipating in more than 10 ESG-related exchange activities throughout 2024, striving for mutual growth andshared value with stakeholders.

Governance Performance

Completion rate for anti-corruption training andcerti? cation for new employees

%

Signing rate for employee integrity pledges

%

6.124

million heads Breeding pigs & piglets supplied

6,334

Serve farming households and enterprises

Leveraging its corporate strengths, Muyuan has built an interconnected industry network to connect andsupport farmers for co-creation and shared development. In 2024, Muyuan supplied 6.124 million breedingpigs and piglets to the market, served 6,334 pig farms (households), facilitated production among farmers,and achieved common development.

and a 100% physical examination coverage rate for employees.

1516

ESG Materiality AssessmentStakeholder Engagement

Materiality Identi? cation ProcessMuyuan places great importance on aligning with stakeholders-including consumers, shareholders andinvestors, government and regulatory bodies, suppliers, employees, communities, and the general public-and has established a regular, multi-channel communication mechanism. The Company actively respondsto stakeholder concerns and expectations, comprehensively identifies risks and opportunities related tosustainable development, and continuously improves its ESG management and practices.StakeholdersKey Areas of Concern

Engagement and Communication

Channels

Our ResponsesConsumers

●Food Safety and Quality●

Consumer Rights Protection●Responsible Marketing●Customer Privacy and Security

●Telephone follow-ups and marketresearches●O? cial website service center●Corporate WeChat account and email●Whistleblower hotline

●Quality ? rst, zero tolerancefor food safety issues●

E? cient and transparentcustomer feedback channels

Shareholdersand Investors

●Legal and CompliantOperations, Safe Production●Stable Growth in InvestmentReturns●Corporate Governance andTransparency●Risk Prevention andManagement●Technological Innovation andR&D●Business Ethics Management

●General meetings of shareholdersand investor research●

Performance brie? ngs andinformation disclosure

●

Annual reports, announcements,and roadshows

●

Dedicated Security a? airs page

●

"Interactive Easy(互动易)" platformand WeChat o? cial account

●

Timely disclosure ofoperational developments andmajor events

●

Communication andengagement with investors

●

Enhanced risk management

Governmentand Regulatory

Authorities

●

Legal Compliance and SafeProduction

●

Rural Revitalization and LocalEconomic Development

●

Full Lifecycle PollutantManagement

●

Carbon Emission Reduction

●

Biodiversity and Land Use

●

Corporate Governance andTransparency

●

On-site researches andcommunication

●

Workshops and coordinationmeetings

●

Regular communication andreporting

●

Project approval, supervision, andregulatory assessments

●

Voluntary tax reporting and specialmeetings

●

Compliance in operations

●

Strict auditing and zerotolerance for corruption

●

Timely disclosure ofoperational developments andmajor events

●

Proactive reporting andcommunication

Suppliers

●

Sustainable Supply Chain

●

Business Ethics●

Information Con? dentiality

●

Integrity conferences and biddingmeetings

●

Negotiation meetings and routinecommunication

●

Partner training

●

On-site audits for partners

●

Procurement platform

●

Supplier Empowerment

●

Supply Chain Finance

Employees

●

Employee Rights Protection

●Workplace Safety

●

Occupational DiseasePrevention

●

Training and exchange, labor unionactivities

●

Employee representative meetings,cultural development

●

Online communication platforms

●

Annual summary and planningmeetings

●

Whistleblower hotline

●

Competitive compensationand additional bene? ts

●

Establish mechanisms,formulate policies, and providetraining; O? er promotionpathways to support employeedevelopment

Communitiesand the Public

●

Community Engagement andEcological Environment

●

Rural Revitalization and LocalEconomic Development●

Employment Promotion

●

Water Resources Management

●

Biodiversity and Land Use

●

Green Packaging

●

On-site visits, research, andcommunication

●

Job provision and communityengagement activities

●

Employee volunteer programs andpublic welfare activities

●

Open day events and agriculturaltechnical services

●

Environmental complaint hotlineand social media feedback hotline

●

Connecting and supportingfarmers, enriching rurallivelihoods

●

"Gathering Love forEducation" series of initiatives

●

Public welfare infrastructureprojects●

Emergency disaster relief●

Assistance for theunderprivileged

●

Environmental protectionopen days

●

Issue recti? cation andfeedback mechanisms

Based on the United Nations Sustainable Development Goals (SDGs), the Shenzhen Stock ExchangeSelf-Regulatory Guidelines No. 3 for Listed Companies – Preparation of Sustainability Reports, theCompany's strategy, industry characteristics, and business priorities, Muyuan has developed its ownmaterial ESG topic list.

Building a Material Topic List

Each topic is assessed from two perspectives: (1) its impact on the environment, society, and theeconomy, and (2) its ? nancial impact.Key factors analyzed include: positive impacts, negative impacts, magnitude of impact, and likelihoodof occurrence.

Analyzing the Importance of Each Topic

Through online surveys, interviews, and other engagement methods, Muyuan gains in-depthunderstanding of stakeholder expectations and demands.Stakeholder Communication and Consultation

Stakeholder feedback is integrated with the results from step two to further re? ne the prioritization andlist of materiality topics.

Re? ning the prioritization of the Materiality Topics

The analysis report is submitted to the Board's Sustainability Committee for review and con? rmation toensure the objectivity and fairness of the assessment results.Submission to the Board for Review

The analysis report is submitted to the Board's Sustainability Committee for review and con? rmation to

The analysis report is submitted to the Board's Sustainability Committee for review and con? rmation toensure the objectivity and fairness of the assessment results.

1718

Governance andLeadership

Muyuan remains committed to its vision of "ensuringpeople can enjoy safe pork and live fulfilling lives."The Company actively aligns with the United NationsSustainable Development Goals (SDGs), focuses onthe pork food industry, continuously enhances its ESGmanagement and practices, promotes the integratedimprovement of economic, ecological, and social benefits,and contributes to the sustainable development of boththe industry and society.

Corporate GovernanceInvestor Rights ProtectionRisk ManagementBusiness EthicsTax Transparency

1920

Corporate GovernanceE? ectiveness of the Supervisory Board

A sound corporate governance structure is fundamental to stable business operations and an intrinsicrequirement for sustainable development. Muyuan strictly complies with the Company Law, Securities Law,Shenzhen Stock Exchange Listing Rules, and the Self-Regulatory Guidelines for Listed Companies issued by theShenzhen Stock Exchange, among other applicable laws, regulations, and normative documents. The Companyhas established a "Three Meetings and One Management" governance structure featuring clear division ofresponsibilities and a top-down management approach. In line with its development needs, the Companycontinuously optimizes its governance framework, enhances its governance level, and promotes high-qualitysustainable development.

As of 2024, Muyuan's Supervisory Board consisted of three supervisors, including one Chairperson, oneSupervisor, and one Employee Representative Supervisor. Among them, one supervisor was female, accountingfor 33% of the total. During the reporting period, the Supervisory Board held seven meetings, reviewed 31proposals, all of which were passed by vote, with a 100% attendance rate among supervisors.The convening procedures, meeting notifications, and timelines for the Supervisory Board meetings fullycomplied with the Articles of Association and relevant regulations. In daily operations, the supervisors diligentlyfulfilled their responsibilities by effectively overseeing the Company's financial affairs and supervising thelegality and compliance of actions taken by directors and senior management. They attended shareholders'meetings and sat in on Board meetings, supervising key matters such as major decisions, ? nancial status, pro? tdistribution, and internal controls, and issued review opinions accordingly-actively safeguarding the lawfulrights and interests of the Company and all shareholders.

Corporate Governance Structure

331007Female proportion on the boardof supervisors

Number of meetings of theboard of supervisors convened

Supervisors'attendance rate%%

Muyuan strictly abides by relevant laws and regulations, defines the rights and responsibilities ofthe General Meeting of Shareholders, and formulates and implements the Rules of Procedure forShareholders' Meetings. The Company engages lawyers with securities practice qualifications towitness the meetings and opens online voting channels to ensure that all shareholders-particularlyminority shareholders-enjoy equal status and can fully exercise their rights. In 2024, the Companyheld two shareholders' meetings, both conducted in compliance with legal procedures. More than2,500 minority investors participated through on-site and online channels. All proposals were votedon and passed.During the reporting period, the Company strictly implemented its Articles of Association andrelevant legal provisions, adopted a cumulative voting system and separate vote counting forminority shareholders, and e? ectively protected the rights and interests of minority shareholders.Shareholders and their proxies exercise their voting rights in accordance with the amount of sharesheld, on a one vote per share basis.

Shareholder Rights Protection

2023 Annual General Meeting of Shareholders

continuously optimizes its governance framework, enhances its governance level, and promotes high-qualitysustainable development.

sustainable development.Corporate Governance Structure

2122

As of the reporting date, the Company's Board of Directors consists of sevenmembers, including one Chairman and one Vice Chairman, who are responsiblefor formulating, supervising, and executing the Company's strategy and areaccountable to the General Meeting of Shareholders. The Board has establishedfive specialized committees, namely the Strategy Committee, Audit Committee,Nomination Committee, Remuneration and Appraisal Committee, and SustainabilityCommittee. All committee members are drawn from the Board and are responsiblefor providing scienti? c and professional advice to support Board decision-making,as well as overseeing the Company's risk management and internal control.In 2024, Muyuan convened nine Board meetings, adopting a combination of on-site and telecommunication-based methods. A total of 57 proposals were reviewed,all of which were unanimously approved, with a 100% attendance rate amongdirectors. In addition, 17 specialized committee meetings were held in 2024,including one Strategy Committee meeting, nine Audit Committee meetings, fourNomination Committee meetings, two Remuneration and Appraisal Committeemeetings, and one Sustainability Committee meeting. All committee membersattended all scheduled meetings, and all proposals were approved by vote.

Board of Directors

NamePosition

StrategyCommittee

AuditCommittee

NominationCommittee

Remunerationand Appraisal

Committee

Sustainability

Committee

BoardMeetingAttendance

Rate (%)

StrategyCommitteeAttendance

Rate (%)

AuditCommitteeAttendance

Rate (%)

NominationCommitteeAttendance

Rate (%)

Remunerationand Appraisal

CommitteeAttendance

Rate (%)

Sustainability

CommitteeAttendance

Rate (%)

Qin,Yinglin

Chairman

of theBoard

100100100100100100

Qian,

Ying

Director100100100100100100

Cao,Zhinian

ViceChairman

of theBoard

100100100100100100

Yang,Ruihua

Director100100100100100100

Yan,Lei

Independent

Director

100100100100100100

Feng,Genfu

Independent

Director

100100100100100100

Zhou,Mingsheng

Independent

Director

100100100100100100

Note: Chairman Member of the Committee

Primary Responsibilities of the Board Committees

StrategyCommittee

Conduct research on the Company's medium- and long-term development strategy and providerecommendations;●Review and make recommendations on major investment and ? nancing plans that, in accordancewith the Articles of Association, require approval by the Board of Directors;●

Study and make recommendations on significant capital operations and asset managementprojects that require Board approval under the Articles of Association;●

Study and put forward suggestions on other material matters that may affect the Company'sdevelopment;

●

Oversee the implementation of the aforementioned matters;

●

Handle other matters authorized by the Board of Directors.

AuditCommittee

The Audit Committee is responsible for reviewing the Company's financial information anddisclosures, overseeing and assessing both internal and external audit activities and internalcontrols. The following matters shall be submitted to the Board of Directors only upon approval by amajority of all Audit Committee members:

●

Financial information disclosed in ? nancial statements and periodic reports, and internal controlevaluation reports;

●

Appointment or dismissal of the accounting ? rm responsible for auditing the Company's ? nancialstatements;●

Appointment or dismissal of the Chief Financial O? cer (CFO);●

Changes in accounting policies or estimates, or correction of material accounting errors, exceptthose due to changes in accounting standards;

●

Other matters stipulated by laws, regulations, stock exchange rules, and the Articles of Association.

NominationCommittee

Formulate selection criteria and procedures for directors and senior management; Select and reviewcandidates for directorships and senior management positions, and assess their qualifications;Make recommendations to the Board on the following matters:

●

Nomination or dismissal of directors;●Appointment or dismissal of senior management personnel;

●

Other matters stipulated by laws, administrative regulations, rules of the China SecuritiesRegulatory Commission (CSRC), and the Articles of Association.

Remunerationand AppraisalCommittee

Establish performance appraisal standards for directors and senior management, and conductperformance evaluations. Formulate and review the Company's remuneration policies and plans fordirectors and senior management. Make recommendations to the Board on the following matters:

●Remuneration of directors and senior management;●

Formulation or amendment of equity incentive plans, employee stock ownership plans (ESOPs),and the granting and vesting conditions of incentive awards;

●

Other matters stipulated by laws, administrative regulations, CSRC rules, and the Articles ofAssociation.●Provide recommendations to the Board of Directors on significant decisions related to theCompany's sustainability matters, including environmental, social, and governance (ESG) issues;

●

Oversee the implementation and progress of the Company's sustainability strategies and plans.SustainabilityCommittee

Number of Members ofthe Board of Directors

Number of Meetings of theBoard of Directors Convened

Number of Special CommitteeMeetings Convened

2324

SustainabilityCommittee

●Oversee the Company's performance in addressing key sustainability topics such as climatechange, public health and safety, and social responsibility, and provide recommendations to theBoard of Directors;

●

Monitor signi? cant sustainability-related information relevant to the Company's operations, studyrelated matters, and o? er advice to the Board;

●Identify sustainability-related risks, assess their impact on the Company, and advise the Board onrisk mitigation strategies;●

Review the Company's annual sustainability reports, sustainability policies, and other relateddisclosure documents, and provide recommendations to the Board;●

Address other matters assigned by the Board of Directors.

Muyuan strictly follows the election procedures and qualification requirementsstipulated by relevant laws, regulations, normative documents, and internalpolicies to appoint quali? ed independent directors. This ensures that independentdirectors maintain objectivity and can perform their duties fairly in Board decision-making, oversight of material issues, and business development.As of the reporting date, the Company's Board of Directors includes threeindependent directors, accounting for 43% of the total, in compliance withregulatory requirements. This structure ensures that the Board can makeindependent and well-informed decisions on signi? cant matters. All independentdirectors participate in the work of various specialized committees.Muyuan has formulated and continuously updated its Independent DirectorPolicy, requiring independent directors to fulfill their duties with diligence andintegrity.In 2024, Muyuan convened one dedicated meeting of independent directors viatelecommunication, during which four proposals were reviewed and all wereapproved. The attendance rate of independent directors was 100%.

Independence of the Board

Number of IndependentDirectors

%Percentage ofIndependent Directors

%Attendance Rate of AllIndependent Directors

The members of Muyuan's Board of Directors exhibit diversity in terms of age, gender, and educationalbackground. They include experts in fields such as animal husbandry, management, law, economics, and? nance, ensuring the Board operates e? ciently and e? ectively.As of the reporting date, there are two female directors on the Board, accounting for 29% of all Board members.

Board Diversity

NameGenderNationalityPositionFirst Appointment DateAge (years old)

Qin, YinglinMaleChina

Chairman ofthe Board

December 201260Qian, YingFemaleChinaDirectorDecember 201259Cao, ZhinianMaleChina

Vice Chairman

of the Board

December 201248Yang, RuihuaFemaleChinaDirectorMay 202448Yan, LeiMaleChina

IndependentDirector

July 202152Feng, GenfuMaleChina

IndependentDirector

September 202168Zhou, MingshengMale

Hong Kong,

China

Independent

Director

December 202352

Board of Directors' Professional Competence / Professional Experience Overview

Name

Professional Competence / Work ExperienceRisk ManagementFinancial ManagementBusiness ManagementIndustry Experience

Qin, YinglinQian, YingCao, ZhinianYang, RuihuaYan, LeiFeng, GenfuZhou, Mingsheng

2526

Conflict of Interest and Related PartyTransactions ManagementIn terms of con? ict of interest management, Muyuan has implemented the Anti-Corruption Management Policy,which clearly requires all employees (including directors and executives) to avoid con? ict of interest situations.The policy prohibits the arbitrary hiring of relatives or the selection of spouses, family members, or relatives assuppliers, sales clients, or strategic partners of the Company.For related party transaction management, Muyuan strictly follows applicable laws and regulations, the Articlesof Association, and the Decision-Making Policy for Related Party Transactions of Muyuan Foods Co., Ltd. toregulate decision-making procedures. When reviewing related transactions, the Board adheres to the principlesof equality, voluntariness, fairness, and transparency, ensures fair transaction pricing, and strictly enforcesrecusal voting rules for related shareholders and directors.In 2024, all related transactions underwent proper review procedures as required, with fair and reasonablepricing. No con? ict of interest violations occurred throughout the year.

Investor Rights Protection

Muyuan has established a standardized information disclosure system to ensure the authenticity, e? ectiveness,and timeliness of disclosures through designated media and websites, and actively publishes sustainability-related information. The Company maintains close communication with investors through multi-channelengagement platforms to enhance their understanding of the Company.Information DisclosureIn strict compliance with relevant laws, regulations, and the Company'sArticles of Association, Muyuan has established a comprehensive informationdisclosure system, including the Information Disclosure Management Policyand the Information Disclosure Management Policy for Debt FinancingInstruments in the Interbank Bond Market, to ensure that information isdisclosed in a truthful, accurate, complete, timely, and fair manner. TheCompany has designated Securities Times, China Securities Journal,Shanghai Securities News, and Securities Daily as its o? cial print disclosuremedia, and CNINFO (www.cninfo.com.cn) as its official online disclosureplatform to ensure equal access to information for all shareholders.In 2024, Muyuan disclosed a total of 193 announcements via designatedplatforms, including 8 periodic reports, 4 sustainability-related reports, and181 ad hoc announcements and other online documents, covering majorguarantees, related transactions, internal controls, and more. Beyondfulfilling mandatory disclosure obligations, the Company proactivelydisclosed information on environmental protection, low-carbon innovation,social responsibility, and corporate governance to demonstrate itssustainability practices and continuously enhance the effectiveness andcomprehensiveness of its disclosures.In 2024, Muyuan was awarded the "Outstanding Board Practice of ListedCompanies" certi? cate and recognized for the "Best Practice Case of BoardSecretary O? ce in 2024" by the China Association for Public Companies.

Board of Directors O? ceCerti? cate of Honor

AnnouncementsIn 2024, Muyuan disclosed

Periodic Reports

Sustainability-Related Reports

All announcements are true, accurate, complete, and timely,effectively conveying relevant information to investors. Fordetails, refer to the Muyuan Share-related disclosures on theCNINFO website (www.cninfo.com.cn)

In the event of serious violations in safety, environmental protection, or corporate governance,the Company will, in addition to pursuing legal accountability, activate a clawback mechanismto recover ESG-related bonuses previously granted to the relevant senior executives.

Establishment of a Clawback Mechanism

ESG Performance AssessmentChairman:Corporate governance and sustainability strategyVice Chairman:ESG risks and opportunities, carbon emissions reductionChief Human Resources Officer:Employee development and diversity & inclusionChief Operating Officer of Pig Production:Food safety management, energy conservation andemissions reduction, Water ManagementChief Legal Officer:Compliance management, business ethics

Director and Executive RemunerationTo drive continuous improvement in the Company's ESG performance and achieve its sustainabilitygoals, core ESG indicators have been incorporated into the remuneration assessment system fordirectors and senior executives, ensuring effective management of key sustainability issues.Based on the impact of each executive's responsibilities on corporate governance, environmental,and social aspects of sustainable development goals, differentiated performance assessmentweights are assigned. Annual evaluations are conducted to measure each executive's contributionto ESG performance, and the results are directly linked to the distribution of performance-basedbonuses for directors and senior executives.

2728

On September 25, 2024, at the 29th meeting of the fourth session of the Board of Directors, the companyreviewed and approved the Proposal on Share Repurchase, planning to repurchase shares at a total value ofno less than 3 billion yuan and no more than 4 billion yuan (inclusive), all to be used for the employee stockownership plan or equity incentive plan. As of the disclosure date of this report, the share repurchase plan isstill under implementation. Please refer to the relevant announcements on CNINFO (www.cninfo.com.cn) forupdates.

Enhancing Investor CommunicationMuyuan maintains open and transparent channels for investor communication, strengthening interactionswith investors through accessible platforms. This helps institutional investors and minority shareholders gaina deeper understanding of the company. In 2024, the company held over 100 investor engagement activities,including on-site visits, conference calls, brokerage strategy meetings, and roadshows. It also participated inmore than 10 ESG-related events, showcasing its initiatives and progress in green and low-carbon development,technological innovation, and biodiversity protection. In total, the company recorded 1,934 instances ofinvestor interaction throughout the year.

100+Investor Communication Events

10+

ESG-related Engagement Activities

1,934timesInvestor Interaction

Enhancing Investor Returns

Since its listing, Muyuan has strictly implemented the profit distribution policy set out in its Articles ofAssociation, actively responding to investor expectations and safeguarding shareholder returns. As of the endof 2024, the company had cumulatively paid out 22.333 billion yuan in cash dividends (including preferredshares and share repurchases).In 2024, based on the operating performance of the ? rst three quarters, the company distributed 4.505 billionyuan in dividends on December 30, 2024. Subject to the approval of the annual pro? t distribution plan by theAnnual General Meeting, the total cash dividends for 2024 will amount to 7.588 billion yuan (pre-tax).In line with national policy initiatives and based on long-term sustainable development and actual operationalperformance, the company has committed to increasing its cash dividend ratio. Provided that the companyremains a going concern, and annual pro? ts and retained earnings are positive, the cash dividend payout foreach of the next three years will be no less than 40% of the distributable pro? ts realized in that year (calculatedcumulatively for multiple distributions within the year), up from the previous 20% minimum.

Proposed 2024 Cash DividendDistribution Plan

7.588

billion CNY

22.333

Cumulative Cash Dividends asof 31 December 2024

billion CNY

2024 Dividends Paid Out

billion CNY

4.505

Environmental Open Days

In 2024, Muyuan successfully organized 728Environmental Open Days and Harvest Festival eventsacross the country, welcoming a total of 33,000 visitors,including local villagers and representatives fromvarious levels of government, to visit its facilities andobserve advanced environmental technologies andprocesses.These events not only demonstrated Muyuan'scommitment and actions toward green and sustainabledevelopment but also enhanced communicationbetween the company and local village committeesand residents. Looking ahead, Muyuan will continueto innovate in processes and technologies, enhancemanagement, and jointly promote the transformationand upgrading of agricultural production.

Jilin Region Environmental ProtectionOpen Day – Tongyu Muyuan StationInvestor Events

On September 12, 2024, 27 investors visited Muyuan's facilities aspart of the Shenzhen Stock Exchange's investor education event,"Entering SZSE 50 Listed Companies."Mr. Qin Jun, the company's Board Secretary, received the investorsand provided detailed responses to their questions, enabling themto gain a comprehensive and in-depth understanding of Muyuan'soperations and development strategy.

Theme-based Investor Education Activity for

"Financial Education Promotion Month"

Media Brie? ngOn November 5, 2024, Muyuan held its annual mediabrie? ng. Representatives from 18 media outlets, includingXinhua News Agency, People's Daily Online, Scienceand Technology Daily, Securities Times, and ShanghaiSecurities News, visited Muyuan for in-depth coverage.The company's senior management had thoroughexchanges with media representatives, providingdetailed answers to questions on operating performance,shareholder returns, technological innovation, andindustry outlook. Through media channels, the companyconveyed accurate and comprehensive information tothe public, promoting high-quality development.

Media Exchange Conference

2930

Risk ManagementMuyuan places great importance on risk management, recognizing that building an effective risk controlsystem and enhancing corporate resilience are key to achieving stable and long-term development. TheCompany draws reference from the internationally recognized COSO (Committee of Sponsoring Organizationsof the Treadway Commission) Enterprise Risk Management Framework to establish and continuouslyimprove its comprehensive risk management system. By optimizing risk management policies and processes,strengthening oversight mechanisms, and enhancing pre-, mid-, and post-event controls, Muyuan ensures full-cycle risk governance.Risk Management StructureMuyuan has established a multi-tiered risk management structure spanning from the Board of Directorsto headquarters management departments, business departments of subsidiaries, the risk managementdepartment, and external supervisory bodies. This framework enables the comprehensive identification,assessment, and mitigation of risks. The Board of Directors serves as the highest decision-making body forrisk management, responsible for formulating the Company's risk management strategy, determining its riskappetite, and regularly evaluating the e? ectiveness of the risk management mechanisms.

Three Lines of Defense in Risk Management

Business departments form the ? rst line of defense in Muyuan?s risk management.●They are responsible for establishing internal compliance management systems and procedures,incorporating compliance requirements into job responsibilities, and conducting compliance riskassessments.●Key compliance risks are identified for critical positions, with risk inventories and contingency plansprepared accordingly. Violations are investigated and rectified, with support from the lead compliancedepartment.●Risks are categorized into known, unknown, and uncertain risks, with tailored management responsesdeveloped for each category.

First Line of Defense: Risk Identi? cation and Early WarningBusiness Departments

The Legal Department serves as the second line of defense.

●It is responsible for the coordination and oversight of risk identification, early warning, andmitigation across the enterprise.●

It localizes external regulatory requirements, promotes and monitors daily compliance effortsacross departments, and strengthens compliance policies, reviews, and assessments to ensure thee? ective functioning of the compliance system.●It builds and evaluates the e? ectiveness of the compliance management system.

●It strengthens development of compliance systems, conduct compliance reviews and assessments toensure the e? ective functioning of the compliance system.

Second Line of Defense: Robust Risk Management MechanismsLegal Department

The Audit Department constitutes the third line of defense.

●It builds a comprehensive, authoritative, and e? cient audit supervision system.

●

It implements a full-cycle audit process encompassing risk assessment, audit planning, auditsupervision, issue identi? cation, internal control improvement, and re-audit.

●

The department fosters an open and collaborative audit environment to maximize supervisione? ectiveness.

Third Line of Defense: Comprehensive Audit and Supervision SystemAudit Department

Risk Management SystemMuyuan attaches great importance to the development of its risk management and internal control systems.The Company has formulated relevant risk management policies and processes and established a three-linedefense model comprising business departments, compliance management departments, and complianceinspection departments. This closed-loop system ensures prevention before incidents, control duringincidents, and emergency response after incidents. Risk accountability is embedded across business units toensure compliance while supporting business operations and production e? ciency.

Risk management is a dynamic and continuously improving process. Muyuan's approach includes five keystages: risk identi? cation, risk assessment, risk response, risk monitoring, and enhanced management.Risk Management Process

3132

The Company has established a 360-degree supervision system, including internal audits, a whistleblowingsystem for all employees, public reporting channels, and media oversight. These mechanisms enhance bothinternal and external feedback loops and reinforce a bottom-up compliance risk management structure,ensuring that all organizational levels can e? ciently identify, prevent, respond to, and manage risks. Muyuanhas opened anonymous feedback channels and strictly enforces whistleblower confidentiality policies. TheCompany encourages all employees to actively detect, report, and respond to problems and has establisheda reward mechanism to close the feedback loop. In 2024, the Company responded to all management-relatedreports, achieving a 100% resolution rate.At the same time, Muyuan has integrated risk identification, rectification, and root cause tracing into itsstandardized business processes. It employs risk maps and risk factor tagging to support digitalized riskmanagement, promote internal self-inspection and self-correction, and continuously improve compliance.Through this closed-loop system, Muyuan has consistently enhanced its risk management capabilities, ensuringtimely identi? cation and e? ective resolution of issues.

Muyuan Risk Management Process

In combination with applicable laws and regulations, external regulatoryrequirements, and the Company's current business context, Muyuan generatesa risk inventory. The primary risk events and sources identified include landuse planning risks, safety risks, labor risks, quali? cation and licensing risks, andenvironmental risks.RiskIdenti? cation

RiskResponse

●For known risks: Improve processes, standards, policies, and systems toensure detailed management and eliminate hidden hazards.●For unknown risks: Conduct forward-looking analysis of laws, regulations,policies, and external developments to fully identify and convert them intoknown risks.●

For uncertain risks: Assess and prevent risks based on current businessconditions, existing laws, and regulatory expectations to ensure that risks areneither overlooked nor exacerbated.●

Improve crisis response mechanisms continuously: Respond to variousrisks in accordance with the law and in a timely manner, ensuring the e? ectivehandling of emergencies.

All risk factors are comprehensively identified and assessed based on theirlikelihood of occurrence and potential impact. Risks are then prioritized to createa multi-tiered risk management map by "site–subsidiary–region", enabling riskcontrol at the smallest granularity.RiskAssessment

Risk factors are monitored in real time and reviewed through regular reportingmechanisms to identify abnormalities. Based on monitoring outcomes,risk response measures are adjusted accordingly. The implementation ofcontrol measures is comprehensively reviewed to ensure rational division ofresponsibilities, timely responses, and e? ective risk mitigation.

RiskMonitoring

Based on risk monitoring outcomes, Muyuan continuously optimizes riskmanagement processes and strategies. The Company strengthens employees'awareness and capabilities in risk management, and consistently improvesoverall risk management and compliance operations.

Enhanced RiskManagement

Compliance Risk Management

360-Degree Supervision System

To e? ectively respond to a rapidly changing external environment, Muyuan has incorporated ESG and emergingrisks into its enterprise risk management framework and conducts regular identification and assessment ofemerging risks. Emerging risks refer to those that have recently arisen or are undergoing signi? cant changesdue to shifts in the external environment, which may have a severe negative impact on the Company andtherefore require prompt and effective countermeasures. Meanwhile, the Company continuously identifies,assesses, monitors, and reports ESG risks. For con? rmed risks, in-depth analysis is conducted to understandtheir potential medium- to long-term impacts and to develop corresponding mitigation measures.

Identification and Management of EmergingRisks

Cybersecurity Risk ManagementIn 2024, three of Muyuan's information systems passed the national classified cybersecurity protectionassessment, meeting the Class III standard (GB/T 22239-2019, Basic Requirements for Classified Protectionof Cybersecurity). The Company conducted three rounds of penetration testing and a total of 20 informationsecurity risk inspections. It also issued six related management policies, including the Information SystemSecurity Vulnerability Assessment and Management Policy and the AI Large Model Usage Security ManagementPolicy.In 2024, the Company handled 23 data leakage risk incidents, all of which were intercepted before any databreaches occurred. No information security incidents were reported during the year.

roundsInformation System Penetration Testing

Intercept Data Breach Incidents

Information Security Incidents

Risk Management Training and Education

Muyuan places great emphasis on cultivating company-wide awareness of risk management and regularlyorganizes relevant training sessions. In 2024, the Company conducted a total of 26 online and o? ine trainingsessions covering labor and employment compliance, tax and financial risk management, and business -related legal knowledge, with more than 100,000 participant instances recorded.Through training programs,employees are enabled to e? ectively identify and respond to potential risks in their daily work and to promptlyreport issues through internal feedback channels. In addition, the Company organizes specialized training formanagement personnel at all levels to ensure they possess the necessary risk awareness and management

3334

Anti-Fraud and Business Ethics Audits

Four-Tier Supervision SystemMuyuan has established a four-tier supervision system for anti-fraud and business ethics.Internal Control Processes:These form the foundation of the Company's oversight framework. By formulating

relevant policies and improving overall internal controls, the Company clarifies responsibilities and authoritiesrelated to anti-fraud and ethics management. Based on this framework, high-risk operations such as fundmanagement, procurement, and sales are standardized to ensure the compliance and effectiveness of anti-corruption governance.Business Self-Inspection:Business departments conduct self-monitoring of high-risk operations, operateautomated early warning mechanisms, and carry out regular inspections and risk screening of key risk areas tosupport internal control.Company Audits:The Audit Department develops an annual audit plan based on risk mapping and business

analysis, focusing on high-risk and new business areas through targeted audit supervision.Company-Wide Supervision:Muyuan fosters a fair, just, honest, and transparent corporate environment by

encouraging supervision from all employees. The Company provides accessible reporting channels and publiclyshares contact details with employees, the public, and the media to collect feedback from all stakeholders. Inaddition, the Company has developed a robust investigation and feedback mechanism to ensure all reports arepromptly addressed and fully investigated. Both anonymous and named reports are accepted, and whistleblowerconfidentiality is strictly protected. Retaliation is strictly prohibited. Verified cases are rewarded in accordancewith the Reward Standards for Reporting Corruption, continuously improving transparency in anti-corruptiongovernance.Integrated Audit and Supervision

Muyuan incorporates anti-corruption as a core responsibility of internal audit (including misuse of funds,benefit transfer, and fraud). Through the audit process, corruption-prone areas such as procurement, sales,bidding, and related-party transactions are proactively identified. The internal control audit team and anti-corruption team share resources, such as data access and investigative authority, and regularly participatein each other's projects. The Company has established a risk identi? cation framework that treats corruption-prone areas as high-risk zones and applies stratified responses. In 2024, the Audit Department, under thestrategic themes of audit supervision and anti-fraud systems, carried out its work in line with the annual auditplan. A total of 47 critical operational areas were audited, including procurement pricing, feed sampling,weighing and quality inspection, pig farming and production, pig sales and deliverys, pig house constructionsettlement,slaughtering and sales. These audits promote system building through audit-driven improvements,encouraging business departments to establish internal self-monitoring and automated alert systems. Muyuanoptimized 63 institutional process standards and 19 digital system features to e? ectively prevent fraud risks.

Muyuan consistently practices its core values of "Creating value, serving society; honest inside and fair outside,advancing social progress," adheres to business ethics, and firmly opposes commercial bribery. Muyuan'sFoundational Code explicitly states: "Oppose commercial bribery, reject unearned gains, and refuse improperbenefits." The Company voluntarily complies with the Ten Principles of the United Nations Global Compact(UNGC) and opposes all forms of corruption, including fraud, insider trading, transfer of benefits, abuse ofpower, obstruction of justice, embezzlement, and seeking private gain.Muyuan prohibits both bribery and acceptance of bribes, kickbacks, and any form of corruption throughbanquets, business hospitality, gifts, or sponsorship.

Business Ethics

Anti-Corruption Governance System

The Audit Committee of the Board of Directors oversees anti-corruption and anti-bribery work. The Companyhas established an Internal Audit Committee for Business Ethics to oversee daily audit work. Muyuan hasissued several policies based on laws, regulations, and actual business needs, including the Anti-CorruptionManagement Policy, Disciplinary Measures for Breach of Integrity, Whistleblowing Management Policy, andReward Standards for Reporting Corruption. These efforts advance the Company's anti-corruption oversightand risk prevention framework, with the goal of building a mutually trustworthy, win-win industry ecosystemand promoting sustainable development. Key operations such as procurement, production, and sales aregoverned by the Relatives and Friends Management Policy, which prevents employees from using theirpositions to gain improper benefits for family and friends and mitigates risks related to interest transfer ornepotism.Muyuan has joined the Corporate Anti-Fraud Alliance and strictly enforces its anti-corruption policies. Violatorsare disciplined in accordance with internal rules, and managers are held accountable. Those suspectedof illegal activity are referred to judicial authorities. Individuals involved in bribery or embezzlement areblacklisted. The Company strengthens internal anti-corruption education by regularly disclosing typicalcorruption cases, organizing warning education conferences, and arranging visits to detention centers andprisons to raise employee awareness. In 2024, Muyuan investigated 69 cases of corruption and bribery (including24 criminal cases), recovered 5.2792 million yuan in misappropriated funds, and issued 4.9437 million yuan inwhistleblower rewards. No external regulatory penalties or ? nes were incurred in relation to anti-corruption oranti-bribery incidents during the year.

casesCorruption/Bribery/Embezzlement CasesInvestigated and Handled

5.2792

million CNYAsset Recovery and LossMitigation

4.9437

million CNYIssuance of WhistleblowerRewards

Businesses should work against corruption in all its forms, including extortionand bribery.UNGC Principle 10:

capabilities.

sessionsConduct Training

100,000+person-timesParticipant Reach

Company-WideSupervisionCompanyAuditBusinessSelf-ReviewInternalControlProcess

3536

Big Data and AI in Anti-CorruptionTo improve the e?ectiveness of anti-corruption e?orts, Muyuan leverages big data and intelligent technologiesto build an integrated digital platform. This platform enables real-time monitoring, early warning, and precisemanagement of corruption-prone areas and high-risk processes such as sales and procurement, effectivelyclosing corruption loopholes and achieving remarkable results.The Company conducts real-time monitoring of data related to the marketing and sales of pigs, forming areconciliation loop to ensure the security of biological assets and the accuracy of data. By harnessing deepdata mining and real-time supervision, Muyuan has signi?cantly enhanced its capacity to predict, detect, andinvestigate corruption, strengthened internal checks and monitoring mechanisms, and e?ectively reduced theoccurrence of misconduct.

Joining the Anti-Fraud Alliance

To further strengthen anti-fraud practices, Muyuan actively participates in business ethics and anti-fraudactivities and serves as a council member of the Corporate Anti-Fraud Alliance, committed to building astrong anti-fraud ecosystem. In 2024, Muyuan participated in ?ve anti-fraud summits and forums, sharing itsexperience in anti-fraud practice, internal auditing, and risk identi?cation, and promoting the implementationof business ethics and anti-fraud e?orts.Anti-Corruption and Anti-BriberyWhistleblowing Management

Muyuan has issued and implemented the Anti-Corruption Whistleblowing Management Policy and the RewardStandards for Reporting Corruption, and continues to improve its whistleblowing and complaints procedures.The Audit Department designates dedicated personnel to receive, process, and handle reports related tocorruption and bribery. Rewards are granted to internal and external whistleblowers who provide validinformation, encouraging employees, business partners, and the public to report violations and jointly create aclean and upright business environment.In 2024, the Company received and processed 267 reports related to anti-corruption, with a 100% caseacceptance rate.

recordsReception and Processing of Anti-Corruption Related Tip-o?s

%Whistleblower Case Acceptance Rate

Whistleblowing Channels●

Email:sjb@muyuanfoods.com●

Phone:17837751511●

Mailing Address:Muyuan Audit Department, Longsheng Industrial Park, Wolong District,Nanyang City

●

WeChat O?cial Account: Search "廉洁牧原"●

Scheduled in-person visit●

Others

Whistleblower Protection MechanismMuyuan strictly protects whistleblowers' personal information and the confidentiality of submittedmaterials. Anonymous reporting is accepted. Retaliation against whistleblowers is strictly prohibitedunder any circumstances.In cases where an auditor handling the report has a close relationship or con?ict of interest with theperson being reported, a recusal mechanism is implemented. Additionally, during publicity and awardprocesses, the Company fully respects the whistleblower's preferences and does not disclose theirname or employer.

Building a Culture of Business Ethics

Muyuan actively cultivates a transparent and honest organizational atmosphere. Through cultural guidance,policy communication, and warning education, the Company promotes the construction of a business ethicsculture, strengthens employees' awareness of anti-corruption and anti-bribery, and fosters a disciplined andupright business environment.The Anti-Corruption Management Policy is included in new employee onboarding and certification exams.All employees are required to sign the Integrity Compliance Commitment, which is incorporated into laborcontract terms.In 2024, 100% of employees signed the Integrity Compliance Commitment, ensuring that all sta? understandand comply with the Company's anti-corruption and anti-bribery management policies.

Business Ethics Training

Muyuan provides multi-level, multi-sector business ethics and compliance training for employees and partners.Topics include forms of corruption, anti-fraud, integrity compliance, and self-discipline. Training formatsinclude thematic sessions on integrity, visits to warning education bases, anti-corruption conferences, fraudcase announcements, and policy brie?ngs, aiming to enhance compliance awareness among employees andpartners.In 2024, the Audit Department organized 122 anti-corruption and anti-bribery education activities, coveringAnti-Corruption Day, regional awareness months, warning education conferences, prison visits, and onboardingculture brie?ngs, achieving full coverage across employees and business partners.

These improvements represent a shift from "passive investigation" to "proactive prevention and control,"enhancing operational e?ciency and reinforcing standardized implementation to ensure the e?cient operationof business and keep risks under control.

Whistleblowing Channels and PublicationMuyuan ensures that every employee and partner is informed of the whistleblowing channels throughinformation sharing and public notices across multiple platforms, including:

●

Muyuan's o?cial website

●O?cial WeChat account●Typical case noti?cations

●Holiday notices●Integrity reminder messages●Customer service platform

●DingTalk work groups●Integrity training documentsReported issues are addressed in a timely manner, and measures are formulated to close managementloopholes.

3738

Anti-Corruption and Anti-Bribery GovernancePerformanceDuring the reporting period, Muyuan achieved the following results in anti-corruption and anti-briberygovernance:

100% of new employees completed anti-corruption orientation andpassed the required certi?cation exam.New Employee Orientationand Certi?cation

100% coverage rate of anti-corruption education among employees in keypositions.Anti-Corruption Educationfor Key Positions

100% coverage rate of anti-corruption education for all employees.Anti-Corruption Education

for All Employees

Lawful Tax Payment

Tax Management System

Muyuan and its subsidiaries strictly comply with tax regulations in all countries and regions where they generaterevenue. The company does not engage in tax avoidance through tax havens and actively contributes to localeconomic development, embodying the spirit of tax law through practical action.

Tax Transparency

The Board of Directors directly supervises legal, tax, and risk control matters, and regularly receives complianceand risk management reports from the Chief Financial O?cer.

Tax Management Structure

Muyuan has issued policies such as the Tax Management Policy, Personal Income Tax Management Policy, andInvoice Management Policy to clarify operational procedures and compliance requirements for tax ?ling andinvoice handling. These policies emphasize lawful taxation and compliant operations, require strict adherencefrom all departments and employees, and are regularly updated to align with the latest laws and policies.

Tax Management Policies

Muyuan promotes tax governance through digitalization, shifting from post-incident risk response to proactive,controllable, and intelligent tax compliance management. The company has been listed in the State TaxationAdministration's "Top 1,000 Enterprises" directory. Muyuan has developed a full life-cycle invoice management

Tax Management Process

system. In response to the rollout of digital invoices, Muyuan actively participated in the Leqi Platform initiativeand was selected as a pilot enterprise. Leveraging advanced information technologies and digital securitycapabilities, 149 subsidiaries have been connected to the platform, realizing seven core functions: invoicing,invoice collection, verification, deduction selection, tax rebate selection, proxy declaration selection, andaccounting. This has enabled full automation and integration of business, ?nance, and taxation functions.

Muyuan regularly conducts capacity-building training in taxation, covering 1,863 participants with 100%coverage of financial personnel. These sessions aim to enhance professional capabilities and strengthen thecompany's tax risk management system from the perspectives of people, mechanisms, policies, and systems,thereby improving tax compliance in accordance with the law.

Tax Management Training

1,863person-timesTax Compliance Capacity Enhancement Training

%Coverage Rate of Financial Personnel Training

Communication with Regulatory Authorities toStrengthen Tax Governance

In 2024, Muyuan signed a Tax Compliance CooperationAgreement with the Large Enterprise Bureau of the HenanProvincial Taxation Bureau. The agreement strengthenedcommunication between the tax authority and the enterprise,established a normalized risk prevention and control mechanism,improved the certainty and consistency in the application of taxpolicies, and enhanced tax processing e?ciency.Muyuan actively fulfills its responsibilities as a large enterprise,continuously enhancing its level of tax compliance, andcontributing to the development of a fair, transparent, andefficient tax environment. It also integrates resources fromgovernment and financial institutions to provide businessplanning and tax consulting services to its upstreamand downstream partners, helping them standardizetax management, reduce tax risks, and promote healthydevelopment.

Chairman of Muyuan and Local Tax AuthoritySign Tax Compliance Agreement

Tax Performance

In 2024, Muyuan and its subsidiaries paid a total of 841 millionyuan in taxes. No tax-related obligations were applicable tooverseas subsidiaries during the year. There were no tax-relateddisputes in the reporting period.

million CNYTotal Tax Contributions in 2024

Al l employees signed the Integrity Commitment Letter, which has beenincorporated into labor contract terms, achieving a 100% signing rate.Integrity Commitment

Signing

3940

Green Developmentand Ecological Co-Prosperity

Climate change is a major challenge shared globally. Muyuanrecognizes the close interconnection between business, theenvironment, and society, and is fully committed to aligning withglobal climate governance requirements. The company rigorouslyfollows the International Financial Reporting Standard S2 - Climate-related Disclosures (IFRS S2) framework to comprehensivelydisclose climate-related topics and earnestly fulfill its corporateresponsibilities.

Addressing Climate ChangeLow-Carbon Actions across the Value ChainEnvironmental ManagementBiodiversity and Land UseWater ManagementWaste and Pollutant Management

4142

Response Strategy

Governance StructureMuyuan has established a tiered low-carbon management structure consisting of the decision-making level,management level, and execution level, clearly de? ning supervisory and management responsibilities at eachlevel to drive green and low-carbon sustainable development from the top down.

Muyuan actively responds to the national dual-carbon goals and the greenhouse gas emission reductiontargets under the Paris Agreement. Through full life cycle analysis (LCA) across the value chain, the companyhas established medium- and long-term carbon reduction plans and developed five major carbon assetmanagement operations-carbon reduction, carbon branding, carbon gain, carbon services, and carbon net-zero. Muyuan has defined clear emission reduction pathways, strengthened technological innovation andmanagement improvement, and reduced carbon emissions generated from Scope 1 (direct emissions), Scope 2(indirect emissions), and Scope 3 (other indirect emissions).

Climate change is a shared global challenge. Muyuan fully recognizes the close interconnection betweenenterprises, the environment, and society. The company actively responds to global climate governance e? ortsand discloses information on climate change issues in accordance with the IFRS S2 Climate-related Disclosuresissued by the International Sustainability Standards Board. Meanwhile, the company pays close attention tocarbon emissions across the entire industry chain, aiming to drive decarbonization throughout the value chain.Muyuan continues to explore and implement green development models for the livestock industry, fosteringnew quality productivity in the sector.

Addressing Climate Change

Decision-Making Level

●The Sustainability Committee under the Board of Directors is responsible for major decisions related toclimate change.●Oversees the implementation and progress of the company's dual-carbon strategy and planning.●Reviews climate-related risks and response measures.

●Deliberates on the company's annual Green and Low-Carbon Action Report, ESG report, carbon reductionpolicies, and other related disclosure documents.Management Level

●

Formulating the company's carbon emission management development goals and plans.

●

Identifying and assessing climate-related risks and opportunities, proposing response measures, andreporting to the Sustainability Committee.●

Establishing a carbon neutrality management system.

●

Organizing the implementation of carbon emission management tasks.

●

Conducting performance evaluations and assessments related to carbon emission management.

Execution Level●

Relevant departments under the company's three major business divisions-feed, pig farming, andslaughtering-such as the Pig Production Department, Nutrition Department, Farm Design Department,Environmental Protection Department, Supply Chain Management Department, and Logistics Department,designate carbon management personnel and form a Sustainability Task Force. This team is responsible forthe execution of low-carbon initiatives, including carbon emissions monitoring and disclosure, formulatingemission reduction measures, conducting carbon management training, and improving personnelcompetence.

Low-Carbon Value Chain Initiative

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Scenario Analysis: RisksScenario Analysis: Risks

1.5°C Warming Scenario: This scenario assumes that industries across the globe actively take

measures to reduce greenhouse gas emissions and promote a low-carbon transition.Risk TypeAcute Physical RiskChronic Physical RiskTransition RiskRisk Event

Floods, heavy rainstorms,

typhoons

Increasing frequency ofextreme cold and hot weather

days

Stricter policy and compliance

requirementsRisk LevelMediumMediumMedium

Impact onMuyuan

Natural disasters may damageproduction and farming facilities,resulting in losses to ?xed assets.Sudden events such as ?oods maydisrupt the supply of feed crops,leading to higher raw materialcosts. Pollution of water sourcesnear farms may increase the riskof diseases, causing harm or deathto livestock. These factors couldinterrupt key economic activitiesincluding procurement, farming,and sales.

Changes in ecological conditionsmay alter disease transmissionpatterns, increasing the risk ofpathogen exposure and livestockinfections, which could impactpig growth and result in lowerpork quality. Operational energydemands may rise; feed storageand transportation may bedisrupted; and supply chainfluctuations may further affectproduct quality. Simultaneously,increased water demand andwater shortages may challengethe stable supply of water forfarming operations.

Transitioning national energystructures toward non-fossilenergy sources and imposing feeson greenhouse gas emissionswill push producers to adoptlow-carbon practices andreduce emissions. Regulatoryrequirements for disclosuresrelated to greenhouse gases,climate change, the environment,and ESG are becoming stricter,increasing compliance risk.Strengthened emission controlswill require adjustments toproduction methods.

Counter-measures

Prioritize selecting higher groundfor farm site locations, enhancedrainage infrastructure, andconduct regular water qualitytesting and maintenance. Developemergency plans for flood andtyphoon response, and purchasecatastrophe insurance to reduceand disperse economic loss risks.

Strengthen disease preventionand control, and developintelligent environmentalcontrol systems to enableprecise regulation and maintainstable temperatures in farms.Enhance monitoring of watersources to ensure the supplyof drinking and productionwater. Promote the circularwater use model of "farming–liquid manure application tofarmland–green agriculture" toreduce wastewater discharge andpromote sustainable agriculturaldevelopment.

Actively promote the applicationof renewable energy such asphotovoltaic power and biogasutilization, carry out technologicalinnovation in energy conservation,and reduce energy consumptionand emissions. Organize "GreenLow-Carbon Benchmark Farm"selection activities to promotegreen and low-carbon production.Conduct timely assessments ofcompliance policies to ensuredisclosure compliance. Promoteintelligent multi-story pig farmingto conserve energy and reducegreenhouse gas emissions.PotentialFinancialImpact

CNY 375,000,000 (Note: Estimated impact on procurement costs due to climate change,based on insurance premium calculations)

1.5°C Warming Scenario: This scenario assumes that industries across the globe actively take

measures to reduce greenhouse gas emissions and promote a low-carbon transition.

Risk TypeTransition RiskTransition RiskTransition Risk

Risk EventTechnology riskMarket riskReputational riskRisk LevelMediumMediumRelatively Low

Impact onMuyuan

During the low-carbon transition,immature technologies maylimit the development of low-carbon farming. High R&D costspose financial and fundingrisks. Rapid technologicaladvancement may render existingequipment obsolete, requiringfurther investment in newenvironmentally friendly farmingtechnologies.

Environmental awareness amongcustomers and consumersis growing. Low-carbon andenvironmentally friendly featuresmay become key productselection criteria. ESG scrutinyfrom investors is intensifying,potentially affecting financingcosts. Higher emission reductionrequirements are being placedacross upstream and downstreamsegments of the value chain.

Stakeholders are paying closerattention to how companiesrespond to climate change. Failureto address their concerns in atimely manner could negativelya?ect the company's reputation.

Counter-measures

Participate in key nationaland industry research projectson low-carbon development,improve the technical systemfor pork production, and drivegreen and low-carbon upgradesacross the industry. Strengthencommunication and cooperationto promote integrated energysolutions. Increase reservesof low-carbon technologies,enhance industry-academia-research collaboration, diversifytechnical measures for reducinggreenhouse gas emissions, andimprove resource recyclinge?ciency to reduce emissions.

Continue energy-saving andemission-reduction effortsthroughout the full lifecycleand provide environmentallyfriendly products that are easyfor consumers to understand.Strengthen training at the salesend to improve understandingof the company's low-carbonprogress and performance, andaccurately communicate it tocustomers. Enhance carbonmanagement across the supplychain, expand the scope ofgreenhouse gas emissionsaccounting, and support suppliersin reducing emissions during feedcultivation and transportation.

Establish a SustainabilityCommittee and a Green & Low-Carbon Office. The company'ssenior management activelyvalues and advances climate-related initiatives. Proactivelycommunicate with stakeholdersthrough multiple channels tounderstand and respond to theirconcerns and expectations in atimely manner.

PotentialFinancialImpact

CNY 375,000,000 (Note: Estimated impact on procurement costs due to climate change,based on insurance premium calculations)

Risk and Opportunity ManagementScenario AnalysisWhen assessing climate-related risks and opportunities, Muyuan refers to the climate warming scenariospresented in the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5). Based onscenarios in which the global average temperature increases by 1.5°C and 4°C between 2080 and 2100, thecompany conducts a comprehensive analysis of climate-related risks and opportunities.

4546

Scenario Analysis: RisksScenario Analysis: Risks

Scenario Analysis: OpportunitiesScenario Analysis: Opportunities

4°C Warming: This scenario assumes that industries worldwide take no measures to reducegreenhouse gas emissions and continue relying on fossil fuels.Risk TypeAcute Physical RiskChronic Physical RiskRisk LevelFloods, heavy rainfall, typhoons

Extreme cold weather and increased

number of extreme heat daysRisk LevelHighHigh

Impact onMuyuan

Sudden natural disasters may cause damage to ?xedassets and pigs, while the accessibility of catastropheinsurance declines. Disasters impact the yield of feedcrops, pushing up raw material costs. Water sourcepollution near farms increases the risk of diseaseoutbreaks, resulting in pig losses or death. Thesemay interrupt basic economic activities such asprocurement, farming, sales, and transportation.

Changes in the ecological environment may alterdisease transmission patterns, increase the risk ofpathogen infection in pigs, and affect pork quality.Operational energy demand rises, feed storageand transportation are impacted, and supply chainfluctuations may affect pork quality. The increaseddemand for water resources and water shortages maya?ect the stability of farming water supply.

Counter-measures

Strengthen ?ood prevention and typhoon emergencyresponse measures, increase operating costs tomaintain operations, and potentially raise productprices.

Invest more to maintain operations, develop newbusinesses and products to meet consumer demand,seek technologies to reduce energy and waterconsumption, and develop alternative raw materials.Continuously improve water-saving technologies andwater resource recycling. Ensure operations and costcontrol through water circular economy.

PotentialFinancialImpact

CNY 750,000,000 (Note: Based on insurance premium estimates of the potential impact ofclimate change on procurement costs)

4°C Warming: This scenario assumes that industries worldwide take no measures to reducegreenhouse gas emissions and continue relying on fossil fuels.Risk TypeTransition RiskTransition RiskRisk LevelMarket riskRising demand for fossil fuelsRisk LevelHighHigh

Impact on

Muyuan

Reduced feed yield and sharp increases in rawmaterial prices. Extreme weather damagesecosystems, reduces production stability, andundermines market supply capacity.

Rising prices of conventional energy and energyshortages lead to higher heating and electricity costs.

Counter-measures

Develop new technologies to reduce the proportion ofsoybean meal in feed; invest in high-quality breedingpig farming to improve survival rates and reduce theproportion of sick pigs.

Use renewable energy, emphasize energy andresource conservation, and ensure operationalcontinuity.

PotentialFinancialImpact

CNY 750,000,000 (Note: Based on insurance premium estimates of the potential impact ofclimate change on procurement costs)

1.5°C Warming: Assuming all industries worldwide actively take measures to reduce greenhouse gas

emissions and promote low-carbon transition.

OpportunitiesType

Products and Markets

OpportunitiesLow-carbon Products and Services

Impact onMuyuan

Customers demand more low-carbon and energy-e?cient products and services, and there is a need to providegreen food to end consumers.

Counter-measures

Increase green product innovation, enhance product value, and strengthen competitiveness. Improve disclosureand publicity on sustainable production and environmentally friendly farming, and establish a good brandimage. Expand into new business areas, such as organic fertilizer production and biomass energy development,to mitigate operational risks brought by climate change.

1.5°C Warming: Assuming all industries worldwide actively take measures to reduce greenhouse gas

emissions and promote low-carbon transition.

OpportunitiesType

FinancingTechnologyOpportunitiesGreen FinanceGreen TechnologyImpact onMuyuan

New green economic opportunities are emerging in the market,such as the development of carbon markets, carbon sink projects,green ?nancial services, and climate-related insurance.

Green technologies in the livestockindustry continue to develop, and thecosts of new technologies are graduallydecreasing.

Counter-measures

Through the Crop-Livestock cycle model, explore agriculturalcarbon sink projects, reduce greenhouse gas emission intensity,participate in carbon emission trading, enhance carbonsequestration capacity in agriculture, and promote the constructionof green branding. Participate in and improve relevant ESG ratingsto attract responsible investors and reduce ?nancing costs.

Actively research alternatives such asplant-based protein, microbial protein,and insect protein to continuouslyreduce the proportion of soybean mealin feed, lead the development of greenanimal husbandry, and build a greenbrand.

4748

Indicators and TargetsMuyuan conducts greenhouse gas (GHG) inventories in accordance with the national standard Quanti?cationMethods and Requirements for Product Carbon Footprint-Livestock Products (GB/T 44903-2024), The 2019Revised Edition of the 2006 IPCC Guidelines for National Greenhouse Gas Inventories published by the UnitedNations Intergovernmental Panel on Climate Change (IPCC), and ISO 14064 standards. The inventory covers theentire industry chain, including agricultural input production and transportation, feed raw materials cultivation,feed processing, pig farming, livestock and poultry raising, on-site energy consumption, live pig transportation,and slaughtering and processing. In 2024, Muyuan's total GHG emission intensity was 1.461 tCO

e per tonne ofproduct.Taking 2024 as the baseline year, Muyuan has set short-term and long-term emission reduction targets: by 2025,the total GHG emission intensity will be reduced by 1.5%; and by 2030, the total GHG emission intensity will bereduced by 20%.In terms of green energy, Muyuan has established short- and long-term goals to continuously increase theproportion of renewable energy utilization. By 2025, the proportion of green electricity substitution will reach4%, and by 2030, this proportion will reach 30%.

Note: 1. Greenhouse gas (GHG) emission data covers all operating sites.

2. The calculation of total GHG emissions and emission intensity includes Scope 1, Scope 2, and Scope 3 emissions, with reference to the

Greenhouse Gases - Quanti?cation Methodologies and Requirements for Carbon Footprint of Products - Livestock Products (GB/T 44903-2024), the 2006 IPCC Guidelines for National Greenhouse Gas Inventories (2019 Refinement), and the Global Warming Potential (GWP)values referenced from the IPCC Fifth Assessment Report.

3. The calculation of GHG emissions is based on the following standards: Greenhouse Gases - Quantification Methodologies and

Requirements for Carbon Footprint of Products - Livestock Products (GB/T 44903-2024), ISO 14064-1:2018 Greenhouse Gases - Speci?cationwith Guidance at the Organization Level for Quanti?cation and Reporting of Greenhouse Gas Emissions and Removals, ISO 14064-1:2019Speci?cation with Guidance for the Validation and Veri?cation of Greenhouse Gas Statements, GHG Protocol: Corporate Accounting andReporting Standard, as well as other applicable laws, regulations, and relevant standards.

4. The GHG inventory includes carbon dioxide (CO

), methane (CH

), and nitrous oxide (N

O).

5. The GHG reduction value represents the cumulative reduction achieved by the Company through upstream emission avoidance

measures such as low-soybean diets, pig houses heating without fossil fuels, and photovoltaic power generation, as well as technicalcontributions from biogas utilization and energy-saving initiatives.

%

Greenhouse gas emissions and renewable energy useindicatorsunit2024

Scope 1 greenhouse gas emissionsmillion tonnes CO

e5.6685Scope 2 greenhouse gas emissionsmillion tonnes CO

e4.3343Scope 1 and Scope 2 greenhouse gas emissionsmillion tonnes CO

e10.0028Scope 3 greenhouse gas emissionsmillion tonnes CO

e8.6598Total greenhouse gas emissionsmillion tonnes CO

e18.6626Greenhouse gas emission reduction valuemillion tonnes CO

e5.2914Total greenhouse gas emission intensitytonne CO

e/tonne of product1.461Biogas utilizationmillion cubic meters37.25Photovoltaic power generationMWh205,000

%2025 Renewable electricitysubstitution rate reaching

%2030 Renewable electricitysubstitution rate reaching

1.5

Reduction in total GHGemission intensity by 2025

Reduction in total GHGemission intensity by 2030

%

Total GHG emission intensity in2024

1.461

tCO

e / tonne of product

Scenario Analysis: OpportunitiesScenario Analysis: Opportunities4°C Warming: This scenario assumes that industries worldwide take no measures to reducegreenhouse gas emissions and continue relying on fossil fuels.

OpportunitiesType

ProductOpportunitiesHealthy and high-quality productsImpact onMuyuan

Customers demand healthy and high-quality pork, and the public is increasingly concerned about nutritiousdiets and meat reserves to address the challenges posed by high temperatures and frequent disasters.

Counter-measures

The company is strengthening supply chain and farming production stability, implementing strict qualityassurance measures to ensure the provision of healthy and high-quality pork that meets market reserve needs.

4°C Warming: This scenario assumes that industries worldwide take no measures to reducegreenhouse gas emissions and continue relying on fossil fuels.Opportunities

Type

TechnologyOpportunitiesGreen TechnologyImpact onMuyuan

There are opportunities in low-carbon technology, renewable energy, and the circular economy.

Counter-measures

In the context of tight energy supply, the company is implementing clean production and energy-saving,emission reduction technologies, and actively developing renewable energies such as solar and biomass. Thesee?orts aim to reduce fossil fuel consumption, lower operating costs, and achieve simultaneous improvements ineconomic and ecological bene?ts, thereby promoting sustainable development in the industry.

4950

Muyuan adheres to the philosophy of sustainable development and actively promotes green transformationacross its entire industry chain. Through innovative initiatives such as low-carbon farming and Crop-Livestockcycle, the company actively explores the application of green energy and pioneers new models for greendevelopment in animal husbandry, fostering new drivers of productivity in the sector.

Low-Carbon Actions across theValue Chain

Soybean meal is one of the main components of pig feed, providing essential protein for pig growth. However,it is expensive, and protein metabolism in pigs produces nitrogen. Since pigs absorb only a limited amount ofnitrogen, the excess is excreted, leading to increased nitrous oxide emissions.Muyuan has continued to invest in the research and application of low-soy diets, investing 143 million yuanto reduce soybean meal usage, thereby lowering farming costs while also reducing excess nitrogen intake,nitrogen emissions, and nitrous oxide emissions. This achieves a synergy between economic and ecologicalbene? ts. In 2024, soybean meal accounted for only 7.3% of the low-soy diet, which was well below the industrylevel. This has reduced nitrogen emissions by 83 thousand tonnes, equivalent to a reduction of 161.3 thousandtonnes of CO

e greenhouse gas emissions. Furthermore, through in - depth research on the optimal nutritionalneeds of pigs and the development of an intelligent feeding system, daily customized diet has been achieved.The company ensures balanced nutrition while increasing feed efficiency and reducing greenhouse gasemissions.

Low-Soy Diet

Crop-Livestock CycleMuyuan integrates livestock farming with agricultural development by promoting the resource utilization ofmanure and establishing a circular economy model of "pigs fertilizes ? elds, ? elds feed pigs". By achieving thecombination of agriculture and pig farming and the Crop-Livestock cycle, the company maximizes the use ofmanure to replace chemical fertilizers, enhances soil organic matter, cultivates soil fertility, and helps farmersreduce the use of chemical fertilizers, thereby continuously contributing to agricultural carbon reduction.To improve fertilizer use e? ciency, Muyuan has formed a dedicated team of agronomists to conduct researchon the resource utilization technologies of crops. In accordance with national standards such as the TechnicalGuidelines for Estimating the Land Carrying Capacity for Livestock and Poultry Manure, and considering variousgeographic and crop conditions, the company returns harmlessly treated manure to the ? elds in a scienti? callysound manner. As of now, Muyuan has established resource utilization pathways for 39 types of crops, includingsweet potatoes, citrus, potatoes, water bamboo, and bananas.In 2024, Muyuan laid a total of 28.381 million meters of support pipelines for agricultural services. The manureresource utilization services covered 4.7208 million mu of farmland (approximately 314,877 hectares) , anincrease of 200.1 thousand mu (approximately 13,347 hectares) compared to 2023. This replaced 154.6thousand tonnes of chemical fertilizer, an increase of 7,800 tonnes year-on-year. Soil organic matter increasedby 2.15%, contributing to cost savings and increased income totaling 1.353 billion yuan. The total amount ofcarbon sequestered in the soil reached 1.4474 million tonnes of CO

e. In addition, Muyuan collaborated withthe National Animal Husbandry Service and the Chinese Academy of Agricultural Sciences to establish eightgreen and low-carbon Crop-Livestock cycle bases.

28.381

million metresCumulatively lay agriculture-supporting pipeline networks in 2024

1.4474

million tCO

eTotal soil carbon sequestration

31.7

thousand tonnesReduce ammonia emissions

148.4

thousand tCO

eReduce greenhouse gas emissions

thousand tonnesReduce nitrogen emissions

161.3

thousand tCO

eReduce greenhouse gas emissions

.

thousand tonnesReduce standard coal consumption in 2024

1.0593

million tCO

eReduce greenhouse gas emissions in 2024

The company has developed and applied unheated pig houses, which reduce energy loss by installinginsulation panels on walls and utilizing heat exchange systems to recover heat from exhaust air. This reducesnatural gas and coal consumption for winter heating from the source and contributes to energy conservationand emissions reduction. In 2024, Muyuan reduced standard coal consumption by 407.4 thousand tonnes,cutting greenhouse gas emissions by 1.0593 million tonnes of CO

e.

Unheated Pig Houses

Muyuan continues to make progress in the environmental field. Our air-filtered pig houses and ammoniareduction & deodorization technologies effectively reduce ammonia emissions. We implement ammoniareduction and deodorization processes across all farms, using intelligent control systems to collect and purifyexhaust gases, ensuring that discharged air is clean and odorless, signi? cantly reducing ammonia emissions.In 2024, the company reduced ammonia emissions by 31.7 thousand tonnes, equivalent to a reduction of 148.4thousand tonnes of CO

e greenhouse gas emissions, setting an example for the industry's green development.

Ammonia Reduction and Deodorization

Pig House Heating without Burning Fosoil Fuel

Geothermal Source

ExternalEnvironment:

-39.3°C

5152

Participation in National Key International CollaborativeR&D Projects

Research and Demonstration of Coordinated Reduction Technologies for Greenhouse Gas andAmmonia Emissions in Pig Farming:Muyuan cooperates with the Institute of Environment and

Sustainable Development in Agriculture, Chinese Academy of Agricultural Sciences, to study the impactof manure management and ventilation within pig houses on greenhouse gas and ammonia emissions.The project aims to establish a demonstration site for coordinated emission reduction technologiesacross the entire pig farming value chain and to evaluate carbon reduction performance.Project Achievements:

●On-site monitoring completed, identifying characteristic parameters of greenhouse gas and ammoniaemissions in pig houses.●

Developed automated manure removal and emission reduction technology using robotics.

●

Established a demonstration site for coordinated greenhouse gas and ammonia emission reductiontechnologies across the entire pig farming value chain.

Moreover, we actively promote industrial services related to ammonia reduction and deodorization, assistinglarge-scale pig and poultry farms in upgrading their ammonia control systems.

In 2024, Muyuan's ammonia reduction technology was promoted by the Ministry of Ecology and Environmentas a key model and deployed with full sets of equipment in Beijing-Tianjin-Hebei, Henan, and Shandong toadvance ammonia emission reductions in animal husbandry.

In addition to advancing its own emission reduction practices, Muyuan actively shares its ammonia reductionand deodorization technologies with the industry to support sector-wide ammonia emission reductions.

Sharing of Ammonia Reductionand Deodorization Technologies

To further replace soybean meal, Muyuan cooperated with Westlake University to produce amino acids usingsynthetic biology. In 2024, the first industrialized project of Muyuan's laboratory was put into operation:

the Muyuan Anliang project, with an annual output of 30,000 tonnes of synthetic biological products. Goingforward, Muyuan will continue to promote low-soy diet technologies. At full industry-scale application, it couldsave 20 million tonnes of soybeans annually, reduce the need for 150 million mu of arable land(approximately10 million hectares), cut nitrogen emissions by 820 thousand tonnes, and reduce greenhouse gas emissions by

1.5932 million tonnes of CO

e.

In 2021, Muyuan publicly released its low-soy diet technology. The Ministry of Agriculture and Rural Affairspromoted it as a model case across the industry, driving reductions in soybean meal usage and nitrogenemissions. As a result, the industry average soybean meal content in pig feed decreased from 15.3% in 2021 to13% in 2023. Over two years, this saved a total of 8.65 million tonnes of soybeans, contributing to food security,while reducing nitrogen emissions by 360 thousand tonnes and greenhouse gas emissions by 699.4 thousandtonnes of CO

e.

Sharing of Technologies to Promote IndustryProgressSharing of Low-Soy Diet Technology

8.65

million tonnesCumulative soybeansavings

699.4

thousand tCO

e

Cumulative reduction ingreenhouse gas emissions

thousand tonnesCumulative reduction innitrogen emissions

1st Technical Exchange Conference on Odor Reduction and

Mitigation Technologies in Livestock and Poultry Farming

In 2024, we shared our "Muyuan's Practices in Ammonia Reduction and Deodorization" at the First Livestockand Poultry Odor Reduction Technology and Application Exchange Conference and the Second Green, Low-Carbon and High-Quality Development Conference of Animal Husbandry. These engagements explored e? cientammonia reduction and deodorization technologies, shared the latest innovations and practical experience,and supported the low-carbon transformation of the livestock industry.

Muyuan actively responds to China's "Dual Carbon" goals by continuously improving energy efficiency andpromoting the use of green energy, contributing to green and low-carbon development. Through the integratedmodel of "pig farming + power generation," which combines solar photovoltaics and biogas utilization, thecompany reduces electricity costs while generating additional income.

Green Energy

Ammonia Reduction and Deodorization Upgrade Projects

In 2024, Muyuan implemented ammonia reduction and deodorization upgrades for Hubei TaikunAnimal Husbandry Co., Ltd. and the Yuexi Jinji Project. Customized ammonia reduction anddeodorization systems were designed and constructed for the farms, effectively reducing ammoniaconcentration in farm emissions and signi? cantly mitigating odor impact in surrounding areas, therebypromoting harmonious development between the company and local communities.

Before renovationAfter renovation

2nd Summit on Green and Low-Carbon High-QualityDevelopment in the Livestock Industry

5354

Photovoltaic Power GenerationSince 2018, Muyuan has introduced photovoltaic (PV) energy, which is now widely applied across its farms andslaughterhouses. In 2024, the total annual PV power generation reached 205,000 MWh, reducing greenhousegas emissions by 108.4 thousand tonnes of CO

e. By the end of 2024, the company's total installed capacityreached 588.90 MW. It plans to add another 800 MW in 2025 and aims to achieve an installed capacity of 10 GWby 2030.Muyuan actively builds a clean energy system by implementing a "self-consumption with surplus electricity fedto the grid" distributed PV model, enabling e? cient use of renewable energy. Veri? ed by the China RenewableEnergy Engineering Institute, the company has cumulatively obtained 6,469 national Green Power Certi? catesfor renewable energy consumption, corresponding to 6.469 MWh of clean electricity usage.

108.4

thousand tCO

e2024 GHG Emission Reductionby PV Power Geneation

205,000MWh2024 PV Power Generation

6,469

Renewable Energy Certificates (RECs)Cumulatively Obtained

Photovoltaic Project

Methane is a potent greenhouse gas, with a global warming potential (GWP) 28–34 times that of carbon dioxideover a 100-year timescale. In livestock farming, ruminants such as cattle and sheep produce large amountsof methane during the digestion process, which is primarily emitted through burping and farting. Methaneemissions from pigs are signi? cantly lower due to their digestive processes. However, manure managementremains a major source of methane, generated mainly through anaerobic decomposition.To reduce methane emissions, since 2016 Muyuan has adopted a process involving dry manure cleaning –enclosed transportation – solid-liquid separation – aerobic composting – anaerobic digestion and sealedstorage. Manure is transported in a fully enclosed system from pig houses to downstream treatmentfacilities. The biogas generated from anaerobic digestion is reused, reducing fugitive methane emissions andcontributing to greenhouse gas mitigation. In 2024, methane emissions from manure treatment reached 3.1694million tonnes of CO

e.

Methane Emissions

Muyuan continues to explore and apply biogas utilization technologies. It aggregates biogas generated fromindividual or multiple farm sites and, using pressurization systems, delivers it to feed mill boilers, harmlesstreatment facility boilers, on-site biogas generators, and biogas purification equipment, thereby improvingclean energy e? ciency.In 2024, the company built 23 new biogas utilization projects, with a total biogas utilization volume of 37.25million cubic meters, equivalent to saving 24.21 million cubic meters of natural gas. Muyuan plans to increasethe biogas utilization rate to 60% by 2030.

Biogas Utilization

New BiogasUtilization Project

37.25

million cubic metersTotal BiogasUtilization

478,600tCO

e2024 Greenhouse GasEmission Reduction

.

million cubic meters2024 Biogas Upgrading Utilization Volume

1.94

million cubic metersBiomethane Production

Biogas puri? cation project

Neixiang Muyuan Integrated Complex:In 2023, invested in and constructed an independently

operated biogas purification project to upgrade biogas into biomethane, which is transported tosurrounding gas-consuming facilities for combustion-based energy utilization. In 2024, the complexachieved a biogas purification and utilization volume of 3.01 million cubic meters, producing 1.94million cubic meters of biomethane.

Muyuan innovatively applies intelligent environmental control technologies and minimum ventilationstrategies for pig herds to continuously improve air utilization e? ciency in pig houses. In 2024, air usage per pigwas reduced by two-thirds, signi? cantly lowering energy consumption.

Gas Conservation and Energy Reduction

Ningling Muyuan, Henan Province:Commenced in July 2024, with 18 farm areas totaling 53.94 MW

of installed capacity, generating 8,685 MWh of electricity and reducing greenhouse gas emissions by3,790.10 tonnes of CO

e.

Aerial photography of Ningling Muyuan

8,685MWhAccumulated ElectricityGeneration

53.94

MWTotal Installed Capacity

3,790.10tCO

eReduce Greenhouse Gas Emissions

Jieshou Muyuan, Anhui Province:Commenced in April 2024, with 2 farm areas totaling 10.88 MWof installed capacity, connected to the grid in June, generating 6,619 MWh of electricity and reducinggreenhouse gas emissions by 4,489.01 tonnes of CO

e.

10.88

MWTotal Installed Capacity

6,619MWhAccumulated ElectricityGeneration

4,489.

tCO

eReduce Greenhouse Gas Emissions

Aerial photography of Jieshou Muyuan

5556

Low-CarbonTransportation

Initiatives

Results and AchievementsLocal

procurement

Muyuan continued to promote local procurement of raw grains, reducing long-distance transportation. In 2024,local procurement accounted for 81.40% of total raw grain purchases.Transportationroutesoptimization

Muyuan continued to promote the multimodal transportation model to reduce road freight transportation. In2024, multimodal transportation accounted for 20%, resulting in a reduction of 1.0537 million tonnes in roadfreight volume and greenhouse gas emissions by 30,000 tonnes of CO

e.Feed pipe-chain

transportation

All farms adopted pipe-chain transportation for feed, replacing vehicle-based rotation transport, thus reducingenergy consumption.

Supply chain

vehicleoptimization

Muyuan encouraged suppliers to adopt more environmentally friendly transport tools, phase out old vehicles,and introduce vehicles compliant with China National V emission standards or above. In 2024, six feed millsonly accepted vehicles that met China V or above standards, resulting in an 82% reduction in particulatematter emissions, a 28% reduction in nitrogen oxide (NOx) emissions, and a 23% reduction in non-methanehydrocarbons (NMHC).

Muyuan actively promotes green o? ce practices among employees,continuously reducing o? ce supplies consumption and energy use.Through routine measures such as water-saving, electricity-saving,and paper-saving initiatives, the company encourages all employeesto start with small actions and consistently practice the concept ofsustainable development.

Green O? ce

Emission CategoryChina IVChina VEmission Limit (g/km)Nitrogen Oxides(NO

X) 0.250.18 28%Non-MethaneHydrocarbons(HC+NO

X)

0.30.23 23%Particulate Matter

Concentration(PM)

0.0250.0045 82%Particulate Number(PN) —6.0*10

Emission Comparison: China National IV vs. China National V DieselTrucks

Initiatives and E? ectiveness of Green O? ce in 2024

InitiativesMeasures

Low-Carbon O? ce

E? cient Paper Usage: By minimizing its paper usage and printed invoices for business transactions,Muyuan reduced the paper consumption and encouraged its employees to use double-sided printingor reuse waste paper.Electronic Signatures:

Muyuan promoted the use of electronic signatures to replace physical stamps. In 2024, a total of374,800 electronic signatures were used, reducing carbon emissions by 65.59 tonnes of CO

e.Smart O? ce:

Muyuan adopted intelligent o? ce systems and promoted video conferencing to reduce business travel-related carbon emissions.

Low-Carbon Lifestyle

"Clean Plate" Campaign:

Muyuan formulated and implemented a company-wide "Clean Plate" policy to reduce food waste.Energy Management:

Muyuan eliminated unnecessary lighting and water usage, strengthened the management of electricalequipment and heating systems to conserve energy and reduce consumption.Low-Carbon Commuting:

Installed 157 charging stations in o? ce parks to encourage employees to use new energy vehicles.Low-Carbon Commuting:

Muyuan installed 157 charging stations in o? ce parks to encourage employees to use new energyvehicles.

Low-Carbon Industrial

Parks

Green Headquarters CampusMuyuan constructed a photovoltaic (PV) power system at its green headquarters campus to promotethe use of green electricity. In 2024, the installed capacity reached 1.49 MW. The annual electricitygeneration was 1,873.4 MWh with self-consumption amounting to 1,782.4 MWh and the self-consumption rate was 95.14%.

The Targets of Green PackagingMuyuan continuously promotes bulk procurement of raw materials to reduce packaging material usage. Thecompany has introduced high-performance resins to reduce the thickness of polyethylene (PE) and lower theproportion of plastic composite ? lms used. By 2025, Muyuan plans to reduce the use of ? ve-layer cartons by atleast 30%, decrease the weight of composite bags by 30%, and increase the use of recyclable PE environmental-friendly materials by 3%.The E? ectiveness of Green Packaging

In 2024, Muyuan replaced bagging machine ? lms with PE continuous roll ? lms, reducing plastic use by 20%,totaling approximately 50 tonnes of plastic saved. The cardboard used for product gift boxes was downgradedfrom ? ve layers to three layers, saving 60 tonnes of corrugated paper. The company also optimized packagingspecifications and materials, consolidating more than ten types of packaging categories, further reducingresource waste.In 2024, 92% of soybean meal was transported in bulk, reducing greenhouse gas emissions by 2,797 tonnes ofCO

e.

Muyuan actively responds to the call for a circular economy by adhering to the 5R principles (Reduce, Reuse,Recycle, Remanufacture, Redesign), continuously reducing packaging material usage and increasing therecycling rate. The company has established a dedicated packaging management team, set carbon reductiontargets, and launched a Packaging Innovation Award to encourage research and development. To controlpackaging waste at the source, Muyuan has adjusted the size and contents of over-configured gift boxes inaccordance with the Requirements for Restricting Excessive Packaging of Commodities, aiming to minimizeexcessive packaging.

Green Packaging

Muyuan actively promotes low-carbon transportation by adoptingmore efficient transport methods to reduce fuel consumptionacross upstream and downstream logistics, thereby further loweringgreenhouse gas emissions.

Low-Carbon Transportation

5758

Governance Structure

The Board of Directors is the highest decision-making body for ESG governance at Muyuan and oversees theEnvironmental Monitoring Department. This department functions as an independent third party to supervisethe company's environmental protection e? orts and regularly reports to the Board to continuously improvethe company's environmental performance. The Environmental Logistics Department is responsible forenvironmental management and is supported by the Ecological and Environmental Technology O? ce and amulti-tiered environmental management structure spanning regional, subsidiary, and farm levels.Management SystemMuyuan has established an e? ective internal environmental management system in accordance with nationaland local environmental protection laws and regulations. The company has clearly de? ned the environmentalresponsibilities of each department and the principles for carrying out environmental work. It has developedstandardized management systems and operational procedures for each environmental task.As of now,Muyuan has formulated 28 environmental management systems covering areas such as wastewater, exhaustgas, noise, solid waste, and emergency response. These include the Muyuan Basic Law, Standard Water UseManagement System, Five Environmental Opportunities and Environmental Operations Management System,Environmental Red and Yellow Card System, Dead Pig Harmless Disposal Management System, HazardousWaste Management System, Agricultural Support Pipeline Network Management System, EnvironmentalOperations Quality Management Standards, and Environmental Benchmark Farm Evaluation Standards,ensuring the e? ective implementation of all environmental requirements.

Environmental CommitmentsMuyuan is committed to enhancing ecological value during its development and to promoting environmentallyfriendly business practices. The company continuously reduces pollutant, wastewater, and exhaust gasemissions and has issued the following environmental protection commitments based on the Muyuan BasicLaw:

Environmental ManagementMuyuan consistently practices green development and upholds the philosophy of "no cost transfer, no hiddenhazards, and no shirking of responsibility." The company strictly complies with national environmentalprotection laws and regulations and has established a five-tier environmental goal system: "zero discharge,no hidden hazards, no odor, smog reduction, and carbon emission reduction." It continues to improve itsenvironmental management system, promote cleaner production, strengthen waste management, and reduceenvironmental impact on an ongoing basis.Muyuan has actively conducted environmental certifications across various segments of its value chain,including feed production, pig farming, and slaughtering. As of the end of 2024, one feed plant, eight farms,and four slaughterhouses have obtained ISO 14001 Environmental Management System certification. Oneslaughterhouse has been designated as a National Green Factory, and two others have been recognized asProvincial Green Factories. Additionally, four slaughterhouses have obtained ISO 50001 certi? cation.

Training and Reporting

Muyuan has developed onboarding training programs and skills enhancement plans for environmentalemployees at all levels. In 2024, the company conducted 331 environmental training sessions and completed31 environmental technical certi? cations, achieving a 100% training coverage rate for environmental personnel.

Internal ReportingChannel

External Reporting

Channel

Reduce energy usage, improve energy efficiency, and increase the proportion ofrenewable energy.EnergyConservation

Support the circular economy by reducing raw material usage, increasing resourcerecycling rates, and building an ecological industrial chain.ResourceConservation

Implement the 5R principles to minimize waste generation and promote therecycling and reuse of waste materials.

WasteManagement

Reduce greenhouse gas emissions and contribute to global climate changemitigation. Climate Change

Conserve water, reduce the use of fresh water, and improve the e? ciency of waterresource utilization.

Water Management

Reduce the negative impact of pig farming operations on the ecologicalenvironment and protect surrounding species.BiodiversityProtection

This includes 229 staff at the provincial level, 964 at the subsidiarylevel, and 8,761 at the farm level. Training topics include environmentallaws and regulations, case-based compliance warnings, environmentaltechnologies, and operational standards, aiming to strengthenemployees' awareness of environmental risks and compliance, and toembed standardized practices into day-to-day operations.At the same time, to further raise environmental operation standards,Muyuan has established both internal and external reporting channelsfor environmental issues, encouraging all employees and the generalpublic to monitor and report concerns. Employees can submit

5960

Biodiversity Governance Structure

Within the company's biodiversity governance framework, the Board of Directors' Sustainable DevelopmentCommittee serves as the core strategic decision-making body, responsible for reviewing biodiversitymanagement matters and guiding protection efforts. The Environmental Logistics Department acts as theexecutive body, formulating and implementing biodiversity conservation strategies and integrating them intobusiness operations. To ensure transparency and strategic alignment in biodiversity protection efforts, theEnvironmental Logistics Department reports comprehensively to the Sustainable Development Committee ona quarterly basis, covering progress, achievements, and challenges. This ensures sustained strategic focus andsupport for biodiversity protection, ful? lling the company's environmental stewardship responsibilities.

Biodiversity is the foundation of the Earth's ecosystems and is essential to ecological balance and humanwell-being. As a responsible enterprise, Muyuan is committed to minimizing the negative impact of itsproduction and operational activities on biodiversity, protecting the ecological environment, and promotingthe restoration and enhancement of biodiversity. The company pledges not to engage in any production orbusiness activities in World Heritage Sites or in ecologically red-zoned prohibited development areas, andrespects all international protected areas, including categories Ia, Ib, II, III, IV, V, and VI as defined by theInternational Union for Conservation of Nature (IUCN).In 2024, Muyuan did not experience any incidents that harmed biodiversity and did not incur any penaltiesrelated to land use issues.

Biodiversity and Land Use

Risk Management

Our biodiversity risk management focuses on due diligence and impact assessments, aiming to reduceecological harm through e? ective risk control.

Biodiversity Management Strategy

To reduce the ecological impact of pig farming activities and protect biodiversity (endangered speciesincluded), Muyuan has adopted the LEAP framework developed by the Taskforce on Nature-related FinancialDisclosures (TNFD) to establish a biodiversity risk management mechanism. This framework consists of fourstages: Locate, Evaluate, Assess, and Prepare, ensuring that ecological protection requirements are embeddedthroughout the entire planning-to-production process.Muyuan has explicitly stipulated that during its production andoperational processes, the company must avoid damaging theecological environment and minimize impacts on the habitatsof wild ? ora and fauna. Through regular environmental reviewsand analyses, the company ensures that all business activitiescomply with national and international environmentalstandards. Muyuan aims to maintain zero biodiversity-relatedincidents through 2025 and beyond.

Biodiversity Field Investigation

Biodiversity Due Diligence

At the project planning stage, prior to site selection, Muyuan conducts comprehensive ecological surveys ofpotential project locations, with a particular focus on identifying areas of high biodiversity value. By identifyingkey ecological nodes and corridors, the company incorporates them into land use planning and adoptspreservation and protection measures to minimize the ecological impact of project development.Keep away from Class I and IIdrinking water source protection

zonesMaintain a distance of over 500meters from scenic areas

Maintain a distance of over 500meters from nature reservesEnsure manure storagelocations are at least 400 metersfrom all types of functionalsurface water bodies

Maintain a distance of over 500meters from ecologically red-lined protected zonesKeep away from protectedcultural heritage zones andconstruction control areasBiodiversity Impact AssessmentMuyuan has formulated a biodiversity management plan and conducts regular biodiversity impact andrisk assessments throughout the operation of its projects to comprehensively identify potential risk points.Meanwhile, the company continuously monitors environmental indicators such as air, water, and soil to trackenvironmental changes in real time. Based on monitoring results, Muyuan develops targeted protectionmeasures and mitigation plans to ensure project operations do not adversely impact the surroundingecosystem and to e? ectively protect endangered species and maintain ecological stability.Biodiversity Management Plan●Muyuan complies with relevant biodiversity protection laws and regulations to ensure that pig farmingactivities meet national biodiversity protection requirements.

●

The company evaluates the impact of its supply chain on endangered species and habitats, avoidingoperations in protected areas or ecologically sensitive regions.●A biodiversity monitoring plan is established to conduct long-term and continuous ecological assessmentsand develop responsive strategies.●Technologies for high-e? ciency resource utilization ,such as manure wastewater puri? cation and reuse, andprecision feeding, are promoted to reduce resource waste.

●

Biodiversity performance data are disclosed and environmental monitoring reports are published regularlyto enhance transparency and credibility.In 2024, a total of 906 biodiversity impact assessments and risk monitoring sessions were conducted, with nomajor risk incidents identi? ed.Monitoring

Subjects

Monitoring Indicators

MonitoringFrequency

Monitoring Coverage

Monitoring

Samples

Soil

pH, electrical conductivity, organic matter,total nitrogen, alkaline hydrolyzablenitrogen, available phosphorus, availablepotassium, cation exchange capacity,copper, zinc, lead, nickel, chromium,cadmium

twice a year, in June

and September

100% of farms covered3,182 samplesGroundwater

pH, electrical conductivity, total hardness,ammonia nitrogen, permanganate index,nitrate nitrogen, nitrite nitrogen, sulfate,chloride, sodium, copper, zinc

twice a year, in June

and September

100% of farms covered4,603 samplesSurface

Water

pH, electrical conductivity, permanganateindex, ammonia nitrogen, total nitrogen,total phosphorus

1–4 times per year

sampling based on surface

river distribution

1,829 samplesAgricultural

Products

nitrogen, phosphorus, potassium, ash, bulkdensity, copper, zinc, sodium

1–2 times per yearrandom sampling92 samples

reports via phone or WeChat QR code, and the company has established a rapid response mechanism fromheadquarters to the front line to ensure timely resolution of environmental risks. External stakeholders mayreport issues via the company hotline or leave messages on o? cial social media accounts, with all informationdirected to the headquarters' Environmental Monitoring Department. Information related to reports is followedup by designated personnel and handled with strict confidentiality. Retaliation against whistleblowers isstrictly prohibited. Upon completion of recti? cation, the company provides feedback to the whistleblower andconducts a satisfaction follow-up to ensure that the issue has been e? ectively resolved.In 2024, the company received a total of 450 external public reports and issued 21.7 thousand yuan in rewards.All issues were resolved, and public satisfaction reached 100%. Since the launch of the internal reportingchannel in November 2024, the company has handled 5,147 cases and issued a total of 314.24 thousand yuanin cash rewards,e? ectively facilitating the rapid identi? cation and resolution of environmental issues.

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Ecological Risk Assessment in Procurement Regions

70% Localized Procurement of Raw Grains, with Ecological Risk Assessment of Sourcing AreasKey ProcurementRegions

Major Production Regions in Henan, Shandong, Hebei, etc.Biodiversity Risk

Endangered Species

Distribution Density

Ecological VulnerabilityIndex

Coverage Rate of BiodiversityHotspots

0.8-1.2 /100km

0.6512.5%Climate Change Risk

Temperature ChangesPrecipitation PatternsExtreme Weather Events

0.8℃ Increase Over the

Past 10 Years

15% Increase in Annual

Fluctuation

20% Increase in Frequency

In analyzing biodiversity and sustainable agriculture risks, Muyuan focuses on the 70% local procurement ofraw grain. The assessment adopts the same time span used in the climate change scenario analysis-globalaverage temperature increases of 1.5°C and 4°C during the period from 2080 to 2100. Biodiversity risks areevaluated by analyzing the impact of climate change on species loss and Muyuan's dependence on ecologicaland natural resources.

Analysis of Biodiversity Degradation and Supply Chain RiskTransmission MechanismDirect impact:A reduction in pollinator insects leads to ? uctuations in corn yields (±5%); declining soil fauna

diversity reduces nitrogen fertilizer utilization e? ciency (cost increase of 8–12%).Indirect impact:Ecological restoration costs ( 0.3–0.5 yuan per tonne of raw grain); supply chain certi? cation

premiums (ESG compliance cost increases by 2–3%).Production Stability Risks Caused by Climate Change

Key parameters:The number of days with extreme high temperatures (>35°C) is projected to increase by 30%,

leading to a 3–5% yield reduction during the corn ? lling stage. Changes in precipitation patterns will increaseirrigation costs (average +8% per year in North China). The frequency of pest and disease outbreaks is alsoexpected to rise, increasing pesticide costs by 5–8% annually.

Risk TypesCost Items

Moderate Risk Scenario:

1.5℃ Temperature Rise

High-Risk Scenario: 4℃Temperature RiseBiodiversity

Yield Loss (yuan/tonne )22.059.0Ecological CompensationCost per tonne(yuan/tonne )

1020Climate Change

Irrigation Cost Increase per

tonne (yuan/tonne )

10.327.6Insurance Premium per

tonne (yuan/tonne )

3.757.5Comprehensive

Impacts

Average Annual CostIncrease (Billion yuan)

0.36-0.460.95-1.15Note: Calculated based on an annual procurement volume of 10 million tonnes, with the price benchmarkset at the current market rate.

Quantitative Analysis of Financial Impacts:

Biodiversity Protection PerformanceGermplasm Resource Conservation:Muyuan actively promotes biodiversity protection, especially in thepreservation of breeding resources. The company has played a major role in conserving the Nanyang Black

Active Participation in Ecological ProtectionInitiativesMuyuan supports the United Nations Convention on Biological Diversity and actively responds to China'sBiodiversity Conservation Strategy and Action Plan (2023–2030). The company collaborates with localgovernments and research institutions on projects such as soil improvement, land vegetation restoration, andbiodiversity protection. In cooperation with nonprofit organizations, Muyuan processes manure wastewaterinto organic matter and nutrients for soil and jointly explores models for soil improvement and restoration.By returning organic fertilizers to ? elds, the company contributes to deserti? cation control. In 2024, Muyuanimproved 318.2 thousand mu (approximately 21,223 hectares) of saline-alkali land and rehabilitated 90.7thousand mu of desertified land(approximately 6,050 hectares), improving a total of 408.9 thousand mu(approximately 27,274 hectares) of land, making a substantial contribution to the "Beautiful China" initiative.

Turning Saline-Alkali Land into Arable LandMuyuan partnered with the Rice Research Institute of Jilin Academyof Agricultural Sciences to advance saline-alkali land improvementtechnologies in western Jilin Province. The project used salt-tolerantrice as the main crop and established a demonstration site in Da'an,Jilin. By the end of 2024, the project had successfully improved

1.24 thousand mu (approximately 82.71 hectares) of saline-alkali

land. The soil pH decreased from 10.03 to 8.5, while organic mattercontent increased by 68%, signi? cantly enhancing soil quality.In addition, in May 2024, the National Animal Husbandry Service,the Institute of Environment and Sustainable Development inAgriculture of the Chinese Academy of Agricultural Sciences, andMuyuan Foods Co., Ltd. jointly established eight green and low-carbon Crop-Livestock cycle bases. Among them, the test plots inthe saline-alkali regions of Northeast China achieved remarkableresults, with rice yields reaching up to 1,056 jin per mu (7,916 kg/hectare)-an increase of 24.24% compared with the control group.

Improvement of Saline-Alkali Land

(Before)

Improvement of Saline-Alkali Land

(After)

%Increase in Organic Matter Content

Pig, a key local breed listed in the national livestock genetic resources catalogue. Muyuan has provided long-term technical and resource support for this effort. By collaborating with scientific research institutions toconduct crossbreeding trials and increasing investment in R&D, the company has improved the conservatione? ciency of the breed. As of the end of 2024, the population of Nanyang Black Pigs reached 3,985, contributingsigni? cantly to the conservation of the breed and the development of regional specialty animal husbandry.Triple-Track Driving Strategy Contributing to Ecological Risk Management: While implementing its local

procurement strategy, Muyuan simultaneously builds monitoring and early warning mechanisms to preventbreaches of local ecological thresholds. Through a "technology + finance + governance" triple-track drivingstrategy, the company transforms ecological risks into competitive advantages. Over the next ? ve years, thisapproach is expected to reduce overall cost volatility by 30–40% and enhance the company's ESG valuation by15–20%.Land Resource Conservation:Muyuan has created a building-based pig farming model that significantly

improves land-use efficiency. Compared with traditional flat-style pig houses, the vertical model increasese? ciency by 4.3 times. In 2024, Muyuan's pig building reached a production capacity of 7.1 million pigs, saving

24.4 thousand mu (approximately 1,629 hectares) of land compared to traditional layouts.

6364

Water resources are vital for maintaining ecological system stability and safeguarding human health, and theyalso serve as a critical foundation for the company's production and operations.Water Management

The Sustainable Development Committee of the Board of Directors is the highest decision-making body forESG governance at Muyuan. It is responsible for supervising Water Management, reviewing water usage andassociated risks, assessing the effectiveness of the company's response measures, and regularly reviewingwater management reports to ensure the e?ective implementation of all measures. Meanwhile, Muyuan hasestablished a Water Management organization composed of senior executives, back-end technical teams, andfront-end management teams. The responsibilities and roles of each team are clearly de?ned to ensure thee?ective implementation and continuous optimization of Water Management measures.

Water Governance Structure

Muyuan is committed to protecting water resources, reducing water consumption, and improving the e?ciencyof water recycling and reuse. To achieve these goals, the company has developed various policies and systems,including the Standard Water Usage Management System for Farms, Water Sampling Management System forFarms, Water Conservation Management Measures for Slaughterhouses, Water-Saving Incentive and PenaltySystem for Slaughterhouses, and the Operation and Maintenance Management System for Water MonitoringEquipment. The company also applies innovative water-saving technologies, strengthens water monitoring,and promotes re?ned management of water intake and use to reduce water-related risks.

Water Management Strategy

Water Resource Risk and OpportunityManagementWater is a critical resource in livestock farming. Muyuan places great importance on managing water risks andis committed to balancing the company's production water needs with those of local communities, ensuringhigh-quality livestock farming while protecting residents' water rights. To this end, the company introduced theAqueduct Water Risk Atlas developed by the World Resources Institute to conduct comprehensive water riskassessments across all major operating sites, including farms, feed mills, and slaughterhouses.Based on the water stress analysis results, 1.92% of the company's operating sites are located in regionsclassified as high or higher risk. For these sites, the company ensures stable production and reduces waterresource risks through a combination of water-saving measures, backup water storage, and increased waterreuse.

In 2024, Muyuan invested 318.7 thousand yuan in ?xed assets to support water supply in high-risk sites, withoperating expenses totaling 2.448 million yuan.

Classi?cation of Water Resource RisksRisk LevelDescription

High Risk

Water-scarce areas, restricted-extraction zones, and resource-de?cient regions with ahigh likelihood of water supply interruptions. Monitoring indicators frequently showsigni?cant anomalies, which severely a?ect pig farming operations.

Medium Risk

Areas with restricted extraction, poor water quality, or unstable water availability,facing a notable risk of water supply interruptions. Monitoring indicators showfrequent anomalies that considerably impact pig farming operations.

Low Risk

Areas with stable external water sources but uneven temporal distribution.Monitoring results occasionally show anomalies, with minimal impact on pig farmingoperations.

Reduce Waste – Upgrade Processes – Recycle and Reuse

Three Commitments to "Sustainable Water Use"

Short- and Mid-Term Water-Saving Targets

Taking 2024 as the baseline year: By 2025, water intake intensityin farming operations will be reduced by 0.2%, and wastewaterreuse volume will increase by 2.2 million cubic meters.Taking 2024 as the baseline year: By 2030, water intake intensityin farming operations will be reduced by 18%, and wastewaterreuse volume will increase by 24.8 million cubic meters.

0.2

%Reduction in Aquaculture WaterWithdrawal Intensity by 2025

%Reduction in Aquaculture WaterWithdrawal Intensity by 2030

Intelligent metering equipment is fully installed in high-risk areas to enhance management,and water-saving appliances are promoted to improve water use e?ciency.Water Saving

In regions with seasonal water shortages, the company increases the capacity of on-sitewater storage facilities to prevent insufficient water supply caused by drought and othernatural disasters.

BackupWaterStorage

Promote the recycled water technology. Recycled water is used to replace clean water inproduction activities such as cleaning, disinfection, and cooling.

IncreasedWater Reuse

6566

Enhancing Water MonitoringThe company places high importance on water monitoring to ensure that its operations do not a? ect the wateravailability of local communities. To fully understand water usage variations across different process stagesand water supply systems, the company has installed intelligent metering equipment in pig farms. Water usageis monitored by unit and production stage through categorized and tiered tracking. Daily water consumptionis monitored online in real time, analyzed, ranked, and flagged with early warnings, providing reliable datasupport for scienti? c decision-making.Through the Muyuan IoT platform, the company has achieved digital Water Management. The platformintegrates multiple business modules, including intelligent environmental control, smart feeding, intelligentinspection, biosecurity, smart electricity, intelligent veterinary services, and smart water management. Itenables interconnectivity across feeding, environmental control, inspections, grain sterilization, water systems,and electricity systems. The platform tracks and warns in real time about water consumption, pollutantgeneration, and water reuse, continuously reducing water intensity.Water Source Management and Safeguards

Muyuan's water sources include groundwater, surface water, and tap water. Farms prioritize areas withabundant, high-quality, and accessible water sources and determine the scale and standards of water usebased on local water conditions.To ensure healthy drinking water for pigs and reduce water-related risks, the company has independentlydeveloped water source disinfection equipment and regularly monitors both water quantity and quality. Aregional water quality map is developed for classi? cation-based management.The company has established the Muyuan Swine Farming Water Quality Standard and conducts regular testingand analysis. Seven key indicators are tested every two weeks, and 28 key indicators are tested annually. Basedon the Common Water Quality Abnormalities and Diagnosis Guidelines, any non-compliant water qualityresults are analyzed for root causes and followed by corrective actions.

Type of TestingMonitoring ItemsMonitoring Frequency

Routine Testing

Colony count, coliform group, Escherichia coli count, turbidity, visible particles, odor, pH

Twice per month

Annual Testing

Total bacterial count, total coliform, pH, total hardness, odor, visible particles, color, turbidity, aluminum, permanganate index, total dissolved solids, hexavalent chromium, chloride, ? uoride, sulfate, nitrate nitrogen, iron, manganese, copper, zinc, lead, cadmium, mercury, arsenic, potassium, sodium, ammonia nitrogen, selenium

Once per year

Anomaly Testing

Newly opened wells, sudden changes in water quality, and other anomalyconditions

Water Quality Monitoring Plan for Farm Sites

Initiatives and Performance

Water Resource Recycling

Muyuan actively practices water recycling, with a focus on water footprint accounting, and has implementedWater Management throughout its entire business chain. The company continuously improves internal wateruse management and control, applying intelligent technologies to enhance water use efficiency and reducefreshwater waste, laying a solid foundation for sustainable development.Water is recycled across the business chain, and the company has developed and applied manure wastewaterpurification and reuse technologies. Manure wastewater from 105 pig farms has been treated and reusedwithin the farms for pen cleaning, disinfection, cooling, and odor control. Meanwhile, all manure wastewaterfrom farms is processed through solid-liquid separation and anaerobic digestion into liquid fertilizer foragricultural use, achieving 100% resource utilization on farmland surrounding Muyuan operations. This liquidfertilizer not only replaces chemical fertilizers but also supplements irrigation water and helps resist drought.In 2024, through integrated water-fertilizer reuse, Muyuan helped farmers save 179.05 million cubic meters ofagricultural irrigation water. Furthermore, in May and June of last year, Henan, Hebei, Shanxi, and Shandongprovinces experienced severe droughts, and soil moisture levels were too low to support corn germination.Muyuan supported drought resistance by returning water-fertilizer to farmland, enabling recycled water use.During the drought, a total of 22.4533 million cubic meters of water-fertilizer mixture was applied, securingsummer grain planting across 839.5 thousand mu (approximately 55,995 hectares) of farmland and contributingto national food security.

Muyuan Water Resource Recycling System

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Water Resources Performance Table (2024)Water-Saving Technology Innovations in 2024

Category of

Measures

Speci?c Actions and OutcomesManure Wastewater

Puri?cation and

Reuse

●The company developed and applied technologies for manure wastewaterpuri?cation and reuse, reclaimed cleaning water, and rainwater utilization, e?ectivelyreducing clean water usage. As of 2024, the manure puri?cation process had beenpromoted across 105 farms. In 2024, total volume of reused manure wastewaterreached 3.876 million cubic meters.ReclaimedWater Reuse inSlaughterhouses

●

Reclaimed water reuse was actively implemented in slaughtering processes. In2024, total water intake in slaughtering was 5.8293 million cubic meters, with 726.8thousand cubic meters of reclaimed water reused-an 11.64% reuse rate-signi?cantlyreducing water intensity during production.Smart Feeding

Technology

●

The company independently developed an intelligent feeding system, enablingsmart mixing, feeding, and water supply to achieve precise water delivery to pigs andprevent water waste during feeding.

Water-SavingEquipment R&D and

Innovation

●During farming operations, limit-type drinkers were used, and water-savingequipment was prioritized during procurement. The water supply and piping systemsutilized automatic exhaust valves, air-supplement valves, and ?oat valves to reducewater waste.

●All water points in workshops were equipped with smart water meters, and cleaningdevices featured sensor-controlled systems to precisely regulate water volume.●In summer, computer-controlled pig house cooling systems were used to adjustspray water usage, reducing water consumption by about 71% compared totraditional manual methods.

Spray SystemUpgrades

●Automatic exhaust valves were installed to address the delay in spray system shuto?in pig houses, saving 3 liters of water per unit per spray.

●

In 2024, 28,873 new units were installed.

Towerless Water

Supply TankUpgrades

●Automatic air intake valves were installed to reduce water waste caused bypressurization after tank drainage, saving approximately 90 tonnes of water permonth.

●In 2024, 219 new units were promoted.

Development ofSmart Showers

●Water-saving bathroom ?xtures were adopted, reducing water usage toapproximately one-third of a normal shower, e?ectively cutting down on personalhygiene water consumption.Tillage-FreeMoisture Retention

Techniques

●

Techniques such as "replacing ploughing operation with the operationof loosening the soil", "replacing ploughing operation with rotary tillageoperation" ,"No-tillage interseeding with high stubble remaining" and "directseeding without tillage on the stubble-covered ?eld" were applied to enhancesoil water retention and reduce moisture loss.

IndicatorsTotalFarmingSlaughteringFeedTotal Water Withdrawal (million m?)214.4920205.56735.82933.0950Municipal Water Withdrawal (million m?)18.069015.88281.59490.5910Surface Water Withdrawal (million m?)13.753913.753900Groundwater Withdrawal (million m?)182.2690175.93064.23442.5040

Total Water Discharge (million m?)6.802705.51511.2876

Surface Freshwater (million m?)1.931300.64371.2876

Groundwater (million m?)0000Marine Water (millionm?)0000Municipal Sewerage Discharge (million m?)4.871404.87140

COD Concentration (mg/L)24.59024.590Ammonia Nitrogen Concentration (mg/L)0.6600.660

Total Phosphorus Concentration (mg/L)0.4200.420

Recycled Water Volume (million m?)179.0546179.054600Reused Wastewater Volume (million m?)4.66583.87500.72680.0640

Total Water Consumption (million m?)219.1574209.44236.55613.1590Water Withdrawal Intensity (m?/t product)/25.06//

Forecast on Water AccessibilityBased on climate change scenario analysis, Muyuan forecasts that during the same future time span (2080–2100), as global warming progresses and extreme weather events become more frequent, water-relatedrisks will intensify and water accessibility will decline. In response, we are actively investing in the researchand development of new water-saving technologies, focusing on optimizing management processes, andcontinuously improving water use efficiency-laying a solid foundation for ensuring a stable supply of high-quality pork amid uncertainty.

Note 1: Total Water Consumption = Total Water Withdrawal + Reused Wastewater Volume.Note 2: The data for Total Water Withdrawal, Total Water Discharge, and Total Water Consumption covers all operational sites.

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EnvironmentalProtectionOperation System

Innovative MeasuresE?ciency Indicators

Biogas UtilizationSystem

Upgraded processes and equipment jointly supportthe puri?cation and e?cient use of biogas. Throughdesulfurization, decarbonization, and natural gascompression systems, biogas is purified into bio-natural gas with a methane content of over 96%.

Green bio-natural gasreplaces fossil fuels, reducescombustion costs, and cutsgreenhouse gas emissionsby 493.1 thousand tonnesof CO

e.Pig ManureTreatment System

In-farm composting using windrow fermentationcan complete the process within 15 days, reducingmoisture content to below 45%, achievingsterilization, deodorization, and moisture reduction,with the ?nal product used as high-e?ciency organicfertilizer externally.

Fermentation volumeloss reduced by 23.61%;fermentation periodshortened to 15 days.Sterilization and

Deodorization

System

Innovative targeted dosing of deodorants achievesprecise application, reducing deodorant usage by30%.

Ammonia removal rate >

97.3%; sterilization rate >

99.9%.

Aerobic BiochemicalTreatment System

Introduced simultaneous short-cut nitrification anddenitrification, with precise control of dissolvedoxygen and sludge age, converting ammonia nitrogeninto nitrate fertilizer. Aeration tank retention timereduced by 50%, construction costs reduced by 50%,and aeration energy consumption reduced by 25%.

Treatment e?ciencydoubled; energy savings of

2.69 kWh per pig.

Water-FertilizerReturn System

The configuration of booster pumps, pipelines, andpump sets was optimized, and inefficient originalpipeline networks were restructured, increasingeffective utilization from 89% to 93.8%. A variety ofwater-fertilizer application methods were developedand implemented-including reel-type sprinklers,upright rotary nozzles, electric drag sprinklers, andground-inserted sprinklers-improving the precisionand efficiency of fertilizer application. Thesetechnologies have been deployed across 277 farmsites.

The pipeline utilizatione?ciency reached 93.8%.

Harmless Treatment

System

Intelligent equipment upgrades, including automatedcontrols, remote data collection, and automatic faultalarms, improve production efficiency and reducelabor intensity. 20% of system upgrades completed.

Labor intensity reduced by50%.

Muyuan strictly complies with all relevant laws and regulations to ensure the lawful and compliant disposalof waste. The company proactively identifies environmental impact factors across all operational stages,minimizes the generation of waste and pollutants at the source, and strictly controls emissions of exhaust gas,wastewater, and solid waste. All emissions are properly treated to ensure environmental protection is alignedwith corporate operations.

Governance StructureIn the management of waste and pollutants, the Board of Directors is responsible for overall supervisionand decision-making, with the Environmental Monitoring Department providing specific oversight. As anindependent third-party supervisory body, the Environmental Monitoring Department reports regularly to theBoard on the implementation status of waste and pollutant control, ensuring compliance and e?ectiveness ofthe company's environmental operations while driving continuous improvement. The Environmental LogisticsDepartment is the primary department responsible for environmental management, tasked with formulatingand executing specific waste and pollutant control strategies. At the operational level, the company hasestablished a four-tier environmental management system covering headquarters, regional management units,subsidiaries, and farm sites. Each level is sta?ed with dedicated environmental managers and technical teamswho are responsible for the daily monitoring, management, and treatment of waste and pollutants, ensuringfull-chain governance and oversight from source to endpoint.

Waste and Pollutant ManagementEnvironmental System Innovation and Performance Indicators

Management Strategy and Measures

By 2025, the company aims to maintain a 100% compliance rate for waste treatment, a 100% resourceutilization rate for liquid manure, and a 100% resource utilization rate for solid manure.Muyuan's environmental facilities for farming operations include odor removal, solid-liquid separation,anaerobic digestion, biogas utilization, water-fertilizer storage, and agricultural support pipeline systems.To ensure stable operation of these facilities, a total of 7,543 inspections were conducted across farms, feedmills, harmless treatment facilities, and slaughterhouses in 2024. More than 2,000 environmental technicalcertification trainings were completed, and standardized operational training achieved 100% coverage. Thecompany also continuously improves equipment performance and automation levels through technologicalinnovation.

2,000+sessionsEnvironmental TechnologyCerti?cation Training

7,543sessions2024 Cumulative Inspections ofAquaculture Facilities, Feed Mills, etc.

%Coverage of StandardizedOperating Procedures(SOP) Training

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Waste management and emission control systemEmission CategoriesWaste SourcesEmission Regulation

Wastewater

Livestock Farming

Wastewater

Animal Urine/Feces withWater Content and CleaningDuring Breeding Process

? Discharge Standard of Pollutants for Livestockand Poultry Breeding (GB 18596-2001)? Emission Standards for Odor Pollutants (GB14554-93)? Technical Speci?cation for SanitationTreatment of Livestock and Poultry Manure (GB/T 36195-2018)Domestic Sewage

Domestic Sewage fromO?ces, Canteens, etc.

Waste

Gas

Odor

Livestock and FecalCollection/Processing, Odorfrom Lairage Pens

? Emission Standards for Odor Pollutants (GB14554-93)? Discharge Standard of Pollutants for Livestockand Poultry Breeding (GB 18596-2001)? Integrated Emission Standard of Air Pollutants(GB 16297-1996)Boiler Exhaust GasNatural Gas Combustion

? Emission Standard of Air Pollutants for Boiler(GB 13271-2014)? Emission Standard for Odor Pollutants (GB14554-93)? Discharge Standard of Pollutants for Livestockand Poultry Breeding (GB 18596-2001)? Integrated Emission Standard of Air Pollutants(GB 16297-1996)Biogas

Crude Biogas Generated fromAnaerobic Fermentation ofManure

SolidWaste

General SolidWaste

Pig Hair/Hooves

? Standard for Pollution Control on the Non-hazardous Industrial Solid Waste Storage andLand?ll (GB 18599-2020)? Emission Standard of Pollutants for Livestockand Poultry Breeding (GB 18596-2001)? Technical Standard of Preventing Pollution forLivestock and Poultry Breeding (HJ/T 81-2001)? Technical Speci?cation for Harmless Disposalof Dead and Diseased Animals? Standard for Pollution Control on HazardousWaste Storage (GB 18597-2023)? Technical Speci?cation for SanitationTreatment of Livestock and Poultry Manure (GB/T 36195-2018)

Gastric Contents

Gastric Contents from WhiteO?al Production ProcessSolid Manure

Solid Feces Separated bySolid-Liquid SeparationResidual Sludge

Residual Sludge fromWastewater TreatmentProcessDead Livestock

and Poultry

Dead Pigs from PigProductionDomestic Waste

Waste Generated DuringLiving/Working Processes

Emission CategoriesDisposal Methods

Wastewater

LivestockFarmingWastewater

Recycling

After being treated with the "solid-liquid separation–anaerobic fermentation–aeration process" (applied at somefarms), part of the farming wastewater is used for farmlandfertilization during the fertilization season, and part is reusedinternally for odor control walls and pen cleaning after furthertreatment, achieving 100% resource utilization.DomesticSewage

Recycling

The wastewater is centrally collected in the farm's fecalsewage treatment area and undergoes harmless treatmentbefore being utilized as a resource.

WasteGas

Odor

Sterilization and

Deodorization

Treatment

Innovative air-?ltered pig houses are applied, and the exhaustgas is sterilized and deodorized through odor control wallswith a deodorization rate of over 99.9%, achieving zero odor(Grade 0) with no disturbance to nearby residents.Boiler ExhaustGas

Low-Nitrogen

CombustionTechnology

The equipment adopts "low-nitrogen combustiontechnology", and boiler exhaust gas meets relevant limitsspeci?ed in national and local "Emission Standards for AirPollutants from Boilers".BiogasRecycling

After desulfurization and dehydration treatment, biogas isused for power generation, replacing natural gas for use infarming and feed mills. Surplus biogas is combusted.

SolidWaste

General SolidWaste

Recycling

After pre-treatment by extrusion, part of the material is soldfor use in the production of protein feed.Gastric ContentsRecycling

After extrusion to reduce moisture content, part of thematerial is sold for the production of organic fertilizer.Solid Livestockand PoultryManure

Recycling

After composting and fermentation on-site, the materialis transported externally for producing organic fertilizer,used for planting fruits and vegetables, achieving resourceutilization with zero discharge.Residual SludgeRecycling

After pressure ?ltration to reduce moisture content, thematerial is sold for producing nutrient soil, green-usefertilizer, or used in earthworm farming.

Dead Livestock

and Poultry

HarmlessTreatment

Equipped with harmless treatment plants, dead animalsare processed through the method of "on-site temporarystorage–sealed transportation–full-process monitoring–dataveri?cation–high-temperature rendering" to ensure zero lossof dead pigs, zero supervision blind spots, zero pathogentransmission, and zero environmental pollution.Domestic Waste

CentralizedTreatment

Domestic waste is collected and temporarily stored atdesignated points within the site and transported daily bymunicipal departments to waste treatment plants for properdisposal

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Risk Management of Waste and Pollutants

Performance and Indicators of Waste and PollutantManagement

The company has implemented speci? c management measures for waste and pollution risks. In accordancewith the Technical Specifications for Pollution Prevention and Control of Livestock and Poultry BreedingIndustry (HJ/T 81-2001), the Regulations on the Prevention and Control of Pollution in Large-Scale Livestockand Poultry Breeding, the Measures for the Review of Animal Epidemic Prevention Conditions, and theTechnical Guidelines for the Delineation of Livestock and Poultry Breeding Prohibited Zones, the companycarries out risk identi? cation and hazard management.

During the reporting period, Muyuan paid 1.3064 million yuan in fines related to environmental issues. Thecompany actively completed all recti? cations in accordance with regulatory requirements, and the penaltiesdid not have a signi? cant impact on production and operations.

Indicator2024Manure wastewater resource utilization rate (%)100Volume of manure wastewater discharge (million m?)0

The output of pig manure (million m?)0.9058Solid manure resource utilization rate (%)100Hazardous waste compliant disposal rate (%)100Harmless disposal rate of dead pigs (%)100

Waste and Pollution Management Measures

Triple-Prevention MeasuresMulti-layer anti-seepage designs are applied to manure wastewater collection poolsand treatment areas at farms, in line with the Technical Specifications for PollutionPrevention and Control of Livestock and Poultry Breeding Industry, e? ectively preventingcontamination of groundwater and soil.

Rainwater and Wastewater Separation System

Rainwater drainage systems are designed in accordance with topography to achievedrainage, puri? cation, storage, and utilization, ensuring smooth discharge of rainwaterand preventing wastewater from entering rainwater channels, effectively reducing? ooding risks and drainage pressure.

Hazardous Waste DisposalEpidemic Disease Transmission RisksHazardous waste is stored centrally and disposed of by qualified third-party serviceproviders. A traceable ledger system is in place to ensure compliant disposal.areinstalled, and collection, transportation, and treatment processes are standardized toensure full-process traceability and control.

Prevention of Epidemic Disease Transmission Risks

Dead pigs are centrally and harmlessly disposed of. Monitoring systems are installed,and collection, transportation, and treatment processes are standardized to ensure full-process traceability and control.

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Responsible Action inPractice

Muyuan adheres to the concept of high-quality development,upholding the business philosophy of "producing healthy food forsociety, improving the quality of life for the public, and enablingpeople to enjoy a prosperous life." The Company firmly believes that"high-quality pork comes from pigs living high-quality lives." Startingfrom the source, Muyuan strengthens quality and safety management,solidifying the foundation of product quality and building a foodsafety ecosystem.Employee Empowerment and DevelopmentOccupational Safety and HealthInnovation and Intellectual PropertyProtectionSustainable Supply ChainRural Revitalization and Giving Back toSocietyRespect and Protection of Human RightsFood Safety and Consumer RightsAnimal WelfareAntibiotics Use Management

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Standardized Career Development

Compliant EmploymentThe Company continuously improves its human resources management system, strictly prohibits child laborand all forms of forced labor, and actively safeguards employee rights. Through the implementation ofinternal policies such as the Labor Contract Management Measures, Personnel Management System, LeaveManagement System, Attendance Management System, Total Compensation Management System, and ReserveCadre Management System, Muyuan standardizes recruitment, promotion, compensation, and benefitsmanagement to ensure compliant operations. The Company is committed to equal pay for equal work formen and women, maintains compensation and bene? ts levels above the statutory minimum standards, andstrictly complies with working hour regulations, prohibiting excessive overtime. Meanwhile, Muyuan supportsemployees' rights to collective bargaining and freedom to form labor unions.In 2024, there were no incidents of child labor or any form of forced labor.

Employee Empowerment and Development

Ensuring full employment and decent work is a key cornerstone of sustainable enterprise development.Muyuan strictly complies with domestic laws such as the Labor Law of the People's Republic of China andthe Labor Contract Law of the People's Republic of China, and adheres to internationally recognized humanrights policies including the United Nations' Universal Declaration of Human Rights, the International LabourOrganization's (ILO) Declaration on Fundamental Principles and Rights at Work, and the Ten Principlesof the United Nations Global Compact. The Company always upholds the principles of equality and non-discrimination in employment, and does not discriminate against employees on the basis of gender, region,ethnicity, skin color, religion, age, nationality, disability, or marital status. Muyuan is committed to promoting adiverse workforce, respecting and safeguarding employee rights as well as occupational health and safety, andstriving to build harmonious, stable, and healthy labor relations.

Muyuan voluntarily complies with the human rights commitments and labor standards setout in the Ten Principles of the United Nations Global Compact, as follows:

Principle 1:Businesses should support and uphold the protection of internationally proclaimed humanrights.Principle 2:Businesses should make sure that they are not complicit in human rights abuses.Principle 3:Businesses should uphold the freedom of association and the e? ective recognition of the right tocollective bargaining.

Principle 4:Businesses should support the elimination of all forms of forced and compulsory labor.Principle 5:Businesses should support the e? ective abolition of child labor.Principle 6:Businesses should support the elimination of discrimination in respect of employment and

occupation.

To ensure the protection of employee rights, Muyuan has taken the followingmeasures:

Elimination of child labor:Strict enforcement of the Provisions on the Prohibition of Using Child Labor.During recruitment, the Company veri? es the age of applicants to eliminate the use of child labor.Prevention of forced labor:During employee management, the Company prohibits the withholding of

identi? cation cards, passports, or other personal documents to prevent forced labor.Legitimate employment practices:Muyuan signs written labor contracts with employees that comply

with labor law requirements and pays ? ve types of statutory social insurance and housing provident fundcontributions in accordance with regulations. Contract terms are recognized by labor authorities to ensurecompliance with relevant laws and regulations.

Unimpeded Career Advancement Channels

Muyuan attaches great importance to employees' holistic development and has carefully designed a scienti? c,transparent, and diversi? ed career development path. The Company provides ample opportunities for verticalpromotion while also expanding horizontal development channels. By comprehensively evaluating employees'performance, capabilities, qualities, and personal aspirations, Muyuan is committed to cultivating outstandingleaders and realizing the full potential of its talents.The Company adheres to the principle of allowing capable employees to rise and unfit ones to step down.Even demoted employees can be re-promoted if they possess the necessary quali? cations and capabilities. Inthe selection of management personnel, the Company insists on transparency to ensure fairness and justice.Employees who experience unfair treatment during selection processes may ? le anonymous complaints, andany form of retaliation is strictly prohibited to safeguard employees' legitimate rights and interests.

Fair Incentive Policies

Muyuan upholds the principle that "those who create value share in its rewards" and implements a distributionsystem based on labor, ensuring that efforts are fairly compensated. The Company has established acomprehensive compensation system that includes base salary, performance-based pay, and equity incentives.Employees are further motivated through job level promotion, learning and development, and honor-basedbene? ts, allowing them to share in the Company's growth.

Innovative Incentive MechanismsMuyuan continues to innovate its incentive mechanisms, upholding a value-oriented approach and optimizingthe remuneration plan for farming technicians. Through a benefit-driven system that guides employeebehavior, farming technicians can clearly understand how to earn higher salaries, with support provided inmanagement, technology, and equipment. This enables employees to raise pigs well and earn high incomes.As of the end of 2024, Muyuan had implemented three phases of ESOP (Employee Stock Ownership Plans) andthree rounds of RSU (Restricted Stock Unit) incentives, with a total of 12,121 participations. In 2024, the averageannual salary of Muyuan employees reached 125.3 thousand yuan.

Promotion channel

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Innovation-Driven Progress with DeterminationMuyuan designates June 22nd of each year as "PigFarming Day," focusing on recognizing leaders andteams of innovation projects. This initiative aims toinspire breakthroughs and leadership from multiplefronts, transform innovation capabilities into a drivingforce for productivity, ensure the effective application ofR&D achievements, and continuously promote industryadvancement.

Muyuan's 19th Pig Farming Festival Award Ceremony

Diversi? ed Learning PlatformsAligned with the Company's development strategy, Muyuan optimizes its talent cultivation system byoffering systematic and targeted training programs. Relying on corporate culture, vision management, goalmanagement, operational management, and professional technical capabilities, the Company continuouslyimproves its diversi? ed learning platforms and resources, aiming to foster well-rounded talent and fully supportemployees' growth and career development.

Type

TargetParticipants

Training Content and ObjectivesNew EmployeeOrientation andProfessionalTraining

All employees

Through a combination of online and o? ine formats, courses such as corporateculture orientation, onboarding essentials, and professional etiquette areprovided to help new employees quickly adapt to their roles, establish correctvalues and thinking patterns, and ultimately realize their potential.Professional SkillsTraining

JuniorEngineers

Job-related SOP process training is provided to help employees quickly masteroperational processes and work skills for e? cient onboarding.IntermediateEngineers

Training is designed to further strengthen higher-level professional capabilitieswhile continuously enhancing key project management skills, fostering theirdevelopment into well-rounded and high-performing leaders.

ManagementCapacity Training

Mid- to Senior-level Managers

Leadership development programs cover vision management, goal setting,performance management, mechanism building, innovation, and talentdevelopment. Managers are paired with mentors and coaches for one-on-oneempowerment, promoting insight and self-awareness among senior leadership.

General Skills

Training

All employees

Standardized training on basic office software, communication, timemanagement, project management, and professional etiquette to improvevocational competencies and overall soft skills, emphasizing self-managementand teamwork.LearningResources

All employees

Resources such as the AI Pig World and internal learning platforms are provided tosupport continuous self-learning and development.Muyuan Employee Training System

In 2024, Muyuan invested 720 million yuanin employee training. On average, eachemployee received 37 days of training,achieving a 100% training coverage rate andcontinuously enhancing labor skills and jobcompetitiveness.

Corporate Culture Training

Robust Talent Selection Mechanism

Muyuan has established clear standards for managerial positions and selects outstanding talents througha well-structured talent assessment mechanism. The Company has implemented a "High-Potential (HiPo)Talent Pool" to provide targeted empowerment to selected individuals. Additionally, through a combinationof empowerment programs for new leaders and dedicated mentor matching, newly appointed managersare supported in rapidly adapting to their roles. This mechanism spans the entire process of talent selection,appointment, transition, and value creation, ensuring the e? cient operation and sustainable development ofthe management team.

Structured Mentorship ProgramMuyuan implements a mentorship system across all levels to empower every employee. Upon onboarding,new employees are matched with experienced mentors who are not only technically proficient but alsopossess strong moral character. These mentors provide both professional and personal guidance to help newemployees adapt quickly, acquire necessary skills, and succeed in their roles.In September 2024, Muyuan successfully held the 16th Baishi Ceremony (Traditional Master-Disciple Rite)

The 16th Master-Apprentice Ceremony

under the theme "Let the futuregeneration stand on my shouldersto realize their own lives." Menteeslooked up to their mentors as rolemodels, embraced learning withhumility, and made remarkableprogress. Throughout the year, theCompany matched 36.4 thousandmentors with 79.1 thousandmentees, enabling mutual growthand development.

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Talent Pool TypesTraining Program

Tier-1 Director Talent Pool / KeyProject Leader Talent Pool

●

Executive mentorship●

Participation in key company-level meetings with coaching●

Mandatory knowledge and skills certi?cation: books,leadership standards, management tools●

Job rotation

●

Key project assignments●

External learning opportunities

Tier-2 Director Talent Pool / Farm

and Section Head Talent Pool

●

Key project (campaign) assignments

●

Coaching pairing●

On-site mentoring●

Specialized training sessions●

Five Mutuals: mutual help, mutual learning, mutualquestioning, mutual testing, mutual evaluation

●

Thematic discussion sessions●

Regular performance reporting

Enhanced Bene?ts and Leave Policies

We have developed a comprehensive bene?ts and leave policy to support employees in achieving a balancebetween work and life. In terms of leave, in addition to ensuring employees enjoy statutory holidays and paidannual leave, we also provide various types of leave, including sick leave, home visit leave, marriage leave,bereavement leave, maternity leave, parental leave, and personal leave. Based on the Company's productionand operational characteristics, we implement flexible measures such as rotating shifts, fragmented timemanagement, and flexible attendance systems to ensure a proper balance between work and rest, and toprevent excessive overtime.In terms of employee benefits, we continuously expand and improve our benefits system to meet thediverse and personalized needs of employees. Our benefits cover nine key areas: clothing, food, housing,transportation, daily necessities, education, healthcare, emotional well-being, and ?nancial support. We o?era wide range of bene?ts including holiday gifts, subsidized company housing, birthday celebrations, newborncare, and mother-and-baby rooms.In addition, with a focus on employee sharing and participation, we have established a diversified benefitsplatform, the JU'AI Platform, which supports programs such as health check-ups and family care. Theseinitiatives are designed to provide employees with more convenient and thoughtful bene?ts, enabling them towork without worries and enhancing their sense of belonging and satisfaction.A Diverse, Equitable, and Inclusive Work EnvironmentWe are committed to creating a discrimination-free and harassment-free work environment, ensuring thatall employees are respected and receive fair opportunities on an equal basis, regardless of gender, region,ethnicity, skin color, religious belief, age, nationality, disability status, or marital status. We offer exclusiveholidays for ethnic minority employees and respect their religious beliefs. As of now, we have actively created541 disability-inclusive positions with accessibility accommodations. Our goal is to foster a harmonious,

diverse, equal, and inclusive Muyuan Family.Moreover, we attach great importance to protecting employees' rights and occupational health and safety. Tothis end, we have developed internal policies such as the Employee Code of Conduct, which clearly defineshuman rights protections and behavioral standards. Through comprehensive training, communication, andgrievance mechanisms, Muyuan continuously strives to build harmonious, stable, and healthy labor relations.Care for Female EmployeesMuyuan implements the principle of gender equality and actively promotes the career development of femaleemployees. As of the end of 2024, the Company had 25,876 female employees, accounting for 19.36% of thetotal workforce, with women holding 27% of senior management positions.We encourage dual-career couples to seek employment together. Currently, there are 9,142 such couplesemployed at the Company. To recognize couples who have demonstrated outstanding job performance, wepresent the annual Model Couple award to inspire more employees to achieve balance and success in boththeir professional and family lives.Furthermore, the Company continuously optimizes its employment system, with particular attention to femaleemployees who wish to return to work after childbirth. We develop personalized development paths basedon each employee's individual needs and career development plans, ensuring continued utilization andpromotion opportunities, and supporting their smooth reintegration into the workplace.25,876personsMuyuan female employees

%female executive ratio

The Company strictly complies with national lawsand implements maternity and breastfeeding leavepolicies. We provide maternity leave and regionalobservances (e.g. Guangxi's Zhuang Ethnic ThirdMoon Third Festival), as well as paternity leave formale employees, to ensure effective protection ofwomen's legitimate rights and interests. We fullysupport women's health by organizing physicalexaminations and corporate-sponsored mobilehealth screenings, and by providing mother-and-baby rooms and single-occupancy dormitoriesto make the workplace more accommodating forwomen.

Free Women's Health Clinic

Comprehensive Employee CareEmployee Well-beingHR Assistant Welfare PlatformMuyuan has developed a full-scenario welfare platform to improve employee well-being. The platformcovers eight major areas-insurance, work attire, dining, housing, transportation, and more-providing fullsupport for employees' daily needs.

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JU'AI Preferred Service PlatformMuyuan is committed to improving employees' quality of life by providing high-quality living services inareas such as clothing, food, housing, transportation, and education, thereby enhancing employees' senseof happiness and belonging.Comprehensive Health Management SystemIn 2024, Muyuan launched a health management program that included the introduction of a digital healthsystem, regular free clinic services, vaccination programs, and health education. The annual physicalexamination coverage rate for employees reached 100%, signi?cantly improving health awareness acrossthe Company.Care for Families of Expatriate EmployeesIn 2024, Muyuan visited approximately 200 families of expatriate employees and established a dedicatedWelfare Group for Expatriate Employee Families, providing comprehensive support in medical care,education, and health check-ups.Employee Support and AssistanceMuyuan implemented an employee assistance program, delivering care and support to 60 individualswith a total amount of 699.7 thousand yuan. The Company continues to conduct surveys on employees inhardship and has improved its support mechanisms to ensure that "assistance is provided when di?cultiesarise." At the same time, labor union activities are used to expand inclusive bene?ts.Care for Retired Employees

During the Spring Festival, the Company organized a gathering event where Muyuan representativesdelivered New Year gifts and greetings to retired employees. They were also invited to visit the Companyheadquarters and the industrial chain to enhance their sense of honor and belonging.

Ju'ai Select Service Platform

NextGen Family Enrichment Initiative – Building HappyFamiliesUpholding the philosophy of "bringing happiness to every family and joy to every child," Muyuan establishedthe NextGen Family Enrichment Initiative platform to provide children with opportunities for learning, growth,and broadening horizons, helping them develop sound values and a positive outlook on life. The platform alsoencourages communication and joint learning among parents, enabling shared progress between parents andchildren, creating a brighter future in Muyuan Park, and enjoying a prosperous life together.

Winter/Summer Vacations, Holidays, WeekendsHeadquarters/Regional Parent-Child

Project Conferences

Winter/SummerStudy Camps

Gifts for Employees'Children

Parent-Child Sports

Games

"Shining Kids" RecognitionSelection ofOutstanding Dual-Employee Families

Interest Classesfor Employees'Children

Muyuan Family Open

Day

Workplace Experiencefor Employees' Children

Social Practice Activities for

Employees' Children

Regular ActivitiesFamily Education LecturesChildcare Services for Employees' Children

Annual Activities

School Admission Support forEmployees' Children

Scholarships for Employees' ChildrenCollege Application Guidance Seminars

NextGen Family EnrichmentInitiative Conferences

In 2024, Muyuan held the 38th and 39th Mother-ChildProgram Conferences, where children showcased theirlearning achievements and parents shared valuableeducational philosophies and methods. These eventsfostered deeper understanding, mutual care, andshared growth among participants.

The 39th Maternal and Child Project Conference

Family Open Day Group Photo

Family Open Day

Family is the strongest support system for employees,and Muyuan's steady development would not bepossible without the full support and sel?ess dedicationof every employee's family. Muyuan hosts Family OpenDay events, inviting employees' families to visit theCompany, tour facilities, experience corporate culture,and observe employees' work, thereby enhancing therecognition and pride of employee families.

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Childcare Services for Employees' ChildrenMuyuan integrates high-quality educational resources to provide childcare services and a wide range ofinterest-based classes, enriching the after-school life of employees' children, nurturing their interests andhobbies, broadening their horizons, and helping them continuously challenge themselves and grow freely andhappily.

Ju'ai Tutoring ProgramInterest-based Classes

Muyuan actively supports the education and development of employees' children by organizing one-daycamps, summer/winter camps, and domestic and international travel programs. These initiatives helpchildren explore the world, discover new things, gain life experiences, and broaden their perspectives andunderstanding.

Beijing Study TourGreater Bay Area Study TourCultural Activities

Muyuan is dedicated to fostering a joyful and comfortable work environment for its employees. To enrich theirlives, we host a variety of cultural events, including:

Complaint-ResponseChannel Poster

National Day GalaWinter Solstice Event

Sports DayQixi Festival Celebration

Spring Team-Building Trip

Spring Festival Gala

National Day

Gala

Through performances such as singing, dancing, comic skits, and drama, Muyuanemployees conveyed their corporate culture and management philosophy, showcasingMuyuan's commitment to creating value and social responsibility in line with nationalpolicies, while re?ecting employees' patriotism.Sports Day

Muyuan organizes exciting sports events that ignite employees' enthusiasm throughphysical activity. Employees continuously challenge themselves and foster unity andteamwork during the events.

Spring FestivalGala

Employees' families are invited to join the celebrations at Muyuan sites to welcome theLunar New Year together with their loved ones.

Fun Sports Day

National Day Gala

Employee Democratic Management

Muyuan has improved the management system of the Employee RepresentativeCongress and labor unions, and developed a democratic management plan to ensureemployees' right to information, participation, and supervision, encouraging fullparticipation in company management. The Employee Representative Congressregularly organizes proposals focused on management, compensation, education, andwelfare. Each department is responsible for collecting and responding to feedback,with a closed-loop mechanism in place to provide written replies to all submittedproposals.To safeguard employees against workplace violations (e.g., bullying, harassment, orabuse of power), Muyuan enforces strict policies prohibiting managerial misconduct.Employees' legitimate rights to participate in democratic management areguaranteed. We provide both anonymous and real-name reporting channels, ensurestrict confidentiality of whistleblowers, and impose disciplinary actions including

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Muyuan has always regarded employeesas family. On the basis of safeguardingemployees' basic rights, Muyuan attachesgreat importance to employee care.Centered around clothing, food, housing,transportation, healthcare, utilities,emotional well-being, and entertainment, wehave built the Employee Happiness Project,continuously creating a comfortable workingand living environment and providingfavorable bene?ts.

The 7th Muyuan Sports Meeting

dismissal for violations. When necessary, cases are referred to judicial authorities. An emergency appealschannel is also available, allowing employees to report issues directly to senior management for timelyresolution.At the same time, we have established Open Dialogue Channels,, providing employees with a spaceto express their concerns and reasoning. These channels ensure smooth reporting and resolution of issuesrelated to compensation, bene?ts, dining, and more, and are open to all employees. We ensure 100% handlingand feedback of employee requests, driving business correction and optimization, effectively safeguardingemployees' basic rights, and fully guaranteeing their rights to expression and supervision. This stimulatesemployees' enthusiasm and creativity and continuously strengthens the Company's democratic managementsystem.In 2024, Muyuan collected a total of 12,289 employee feedback entries, covering areas such as humanresources, compensation, benefits, and dining. During the reporting period, the complaint acceptance ratereached 100%, and the complaint resolution rate reached 99.7%, e?ectively improving employee satisfactionand participation in management.

Occupational Safety and Health

Safety Management PolicyMuyuan consistently adheres to the principle of "safety first," strictly complying with the Work Safety Law,Fire Protection Law, Emergency Response Law, and other relevant regulations. We have set a "zero-accident"safety goal and uphold the principle that "those who manage business must also manage safety." All businesslines fully implement the Company's safety management requirements, strengthening the safety managementsystem to ensure risk control and overall safety stability.In 2024, Muyuan invested 150.56 million yuan in work safety. The ISO 45001 certi?cation rate for safety-relatedoperations reached 40%.

In 2025, Muyuan has set a target of zero fatalities in work safety and plans to increase the ISO 45001 certi?cationrate to 100%.

Three Core Principles of Safety ManagementStrengthen Safety ResponsibilitiesEach department bears the primary responsibility forsafety management. .Managing business must includemanaging safety.Eliminate Hazards at the Source

Each department must take full responsibility forwork safety, eliminating risks from the source throughprocess design to prevent accidents and achieveintrinsic safety.

Third-party Safety SupervisionStrengthen supervision and performance assessmentto achieve a closed-loop safety management system.

Five Major Safety Management

MechanismsMechanism for Risk ClassificationControl and Hazard Identification &Recti?cationEducation, Training, and PersonnelCerti?cation MechanismOn-site Management MechanismEmergency Management MechanismSupervision and Evaluation Mechanism

Eight Safety Philosophies

Safety is the outcome. All safety incidents can be prevented, and all hazards can be controlled.Safety stems from design, quality, accountability, and competence.Zero tolerance for all violations of safety rules and regulations.Managers at all levels are directly responsible for safety within their business scope.Safety requires the participation of all employees and must be managed comprehensively throughout the entireprocess and in all aspects.All employees must complete safety training before starting work.Managers at all levels must carry out safety inspections, and any identi?ed hazard must be promptly recti?ed.All incidents require immediate reporting, analysis, and resolution.Safety Management SystemMuyuan has established a three-tier safety management structure spanning headquarters–regional–subsidiarylevels. The Board of Directors directly oversees major safety-related decisions and receives reports fromthe Headquarters Safety Production Committee. At the regional and subsidiary levels, Safety ProductionCommittees are set up accordingly. At the same time, Muyuan has built the Safe Muyuan co-governanceplatform, enabling all employees to report hazards in real time, track rectification progress, and submitsuggestions, thereby realizing a closed-loop system of decision-making, execution, supervision, and feedbackfor multidimensional risk prevention and control.Muyuan ties executive KPIs to EHS Indexs, while advancing its 'Safety Ownership by All' initiative. The Companystrictly implements the System Linking Safety Performance and Compensation and Hazard ClassificationAssessment Standards. Safety Production Committees at all levels are responsible for analyzing the safetysituation, reviewing annual safety plans, inspecting the progress of safety work, reporting to the Board ofDirectors, and implementing the risk classi?cation control and hazard identi?cation & recti?cation mechanismsto ensure dynamic elimination of risks and hazards.

Anonymous Feedback Channels

Real-name Feedback Channels

Complaint and Reporting EmailDedicated Complaint Hotline

HR AssistantAI Assistant

Intelligent MumuSalary Appeal Channel

Union HotlineAudit Channel

HR HotlineOpen Dialogue

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Safety Risk ManagementRisk Prevention and Identi? cationMuyuan strengthens risk prevention by building a "dual-control mechanism," which involves both safety riskclassi? cation control and hazard identi? cation and recti? cation. Regular special safety inspections are carriedout, safety manuals are formulated, and weak links in safety risks are assessed and eliminated. The SafetyRisk Team developed a Hazard Mapping System (e.g., color-coded risk zones for di? erent worksites) to ensurecomprehensive control of hazardous operations, including approval, supervision, and video monitoring,ensuring full-cycle safety management for contractors and focusing on risks such as extreme weather.Muyuan attaches great importance to safety conditions before the commissioning of new projects andadopts a joint acceptance approach to conduct comprehensive inspections and evaluations, identifyingand preventing potential safety risks in a timely manner. This ensures compliance with industry standardsand legal regulations. Meanwhile, Muyuan provides employees with personal protective equipment (PPE) toensure occupational safety, identi? es risks in con? ned space operations, issues the Con? ned Space OperationsManagement System, implements technical modifications, upgrades protective measures, and continuouslyreduces safety risks to improve safety performance.Muyuan has established a electrical safety cloud-based monitoring platform and uses an electrical safetymonitoring and early warning system powered by IoT technology to conduct uninterrupted big data analysisand AI calculation on key fire risk factors (such as wire temperature, current, voltage, and leakage current).This system can identify potential electrical hazards in real time (such as abnormal cable temperatures, shortcircuits, overloads, overvoltage, undervoltage, and leakage), and helps locate and address on-site powerfailures. Currently, the Company has installed 13,869 electrical monitoring devices, achieving 98% coverageacross all facilities, e? ectively preventing electrical ? res.Emergency Safety ManagementMuyuan has established an emergency managementframework for safety and formulated variouscontingency plans, including the Contingency Planfor Water Supply Disruptions, Emergency Plan forFires in Multi-Storey Pig Houses, and EmergencyPower Outage Plan. Through the allocation ofemergency supplies and enhancement of emergencydrills, the Company improves its ability to preventand respond to unexpected safety incidents.

Safety InspectionSafety Culture DevelopmentMuyuan promotes safety awareness and builds a long-term mechanism through safety culture initiatives. TheCompany has established the "Safe Muyuan" platform, on which all employees study General Secretary XiJinping's important discourses on work safety and watch relevant documentary programs to strengthen safetyculture. In 2024, Muyuan provided safety training and capability certi? cation to 133,642 employees, reinforcingaccountability for safety production and clarifying bottom-line responsibilities. During the reporting period,both the safety training coverage rate and safety capability certi? cation rate reached 100%.To strengthen frontline safety management, Muyuan organizes morning meetings before work every day. Thesemeetings are held at the production team or workshop level and are presided over by the site or plant manageror team leader. Each meeting lasts no less than five minutes, with longer durations for teams engaged incomplex or high-risk operations. The goal is to ensure employees are pro? cient in safety operating proceduresand emergency response skills. The entire process is required to take place within the range of video

surveillance, and business lines and safety inspectors include this activity as a key part of daily inspections andrandom checks. Through this mechanism, employees gain a clearer understanding of their job responsibilitiesand safety requirements, maintaining alertness and ensuring safe operations.Occupational Health ManagementMuyuan strictly complies with the Law on the Prevention and Control of Occupational Diseases and adheres tothe principle of "prevention ? rst, combining prevention with control." The Company systematically identi? esand controls occupational hazards such as dust, noise, and high temperatures, building a "training–protection–monitoring" integrated prevention system (training-protection-monitoring trinity). Through the developmentof a comprehensive occupational health training system, awareness campaigns, optimization of dust andnoise control measures, and upgrades of personal protective equipment, Muyuan creates a safe workingenvironment. The Company has established occupational health records and regular medical examinationsystems, strengthened accountability for safety performance at the management level, and ensured a closed-loop process for occupational health management. In 2024, Muyuan conducted 57 company-wide occupationalhealth training sessions, achieving 100% employee participation.At Muyuan's feed mills, occupational disease hazard control is strictly enforced in accordance with relevantlaws and regulations, with safety-focused upgrades implemented. This includes automation of productionlines, deployment of high-e? ciency dust removal equipment, and dynamic dust monitoring throughout theproduction process to reduce operational risks at the source. Muyuan mandates annual occupational healthscreenings for all employees, and the Company has maintained zero pneumoconiosis cases for consecutiveyears.Muyuan follows the WHO's initiative to combat antimicrobial resistance and places great importanceon occupational health risk prevention. In light of the characteristics of the farming industry, the use ofantimicrobial drugs is incorporated into the employee health management system. Muyuan enforces thenational antibiotic reduction policy, optimizes farming processes and biosecurity measures, and regularlyconducts training on the rational use of antimicrobials and resistance monitoring to e? ectively reduce the risk.of occupational exposure.

Fire Safety DrillSafety Training ConferenceFire Safety PublicAwareness CampaignContractor SafetyMuyuan places great importance on contractor safetyand has issued the Safety Management Regulations forContractors and Partners, which specify requirements forcontractor safety quali? cations and supervise safety duringon-site construction and special operations. Inspectionand evaluation are mandatory. To raise contractorsafety awareness, Muyuan organizes safety productioneducation and training for contractors and requires healthexaminations before entering the site.

Contractor Safety Training

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Innovation and IntellectualProperty ProtectionMuyuan attaches great importance to and actively encourages technological innovation, continuouslyincreasing R&D investment, providing a favorable environment for innovation, and attracting outstandingresearch talents. The Company has established and improved innovation incentive mechanisms andbuilt innovation and R&D platforms. In 2024, the Company incurred R&D expenses of 1.747 billion yuan,accounting for 1.27% of its revenue. As of the end of 2024, Muyuan had undertaken 8 national key researchprojects and received 5 provincial-level Science and Technology Progress Awards.

Strengthening Intellectual Property Protection

Muyuan places strong emphasis on and safeguards intellectual property (IP). The Legal Department has adedicated IP team responsible for managing IP-related matters. Meanwhile, the Company enhances employees'awareness of IP protection and improves the competitiveness of the corporate brand.Muyuan strictly complies with the Trademark Law of the People's Republic of China, Patent Law of thePeople's Republic of China, and Copyright Law of the People's Republic of China, continuously improvingits IP protection system. The Company has established a set of management policies, including the PatentManagement Policy, Trademark Usage Management Policy, Computer Software Usage Management Policy,Font Usage Guidelines, and Image Usage Guidelines, to strengthen the protection of trademarks, patents,copyrights, and other IP rights.

Building Innovation and R&D PlatformsPromoting Industry-University-Research IntegratedDevelopmentThrough partnerships with universities and the joint establishment of industrial research institutes, Muyuanhas achieved deep integration of industry, academia, and research, enhancing new quality productive forces.The Company has conducted forward-looking R&D with institutions such as Westlake University and HenanAgricultural University in areas including synthetic biology, intelligent farming, environmental management,disease prevention and control, and nutrition and health, setting a new benchmark for integrated innovationand ensuring the supply of healthy and nutritious pork products.Establishment of Muyuan Laboratory – Focusing onIndustry-University-Research CollaborationOn June 23

th

, 2024, the Muyuan Laboratory held the inaugural session of its First Academic SteeringCommittee. At the meeting, the laboratory presented its construction plans, current progress, and the? rst batch of proposed projects, and discussed key future research directions.

IP Protection Mechanisms and MeasuresAs of the end of 2024, Muyuan and its subsidiaries had cumulatively filed 2,276 patent applications andobtained 1,764 granted patents. In 2024 alone, the Company filed 136 patent applications and received 138granted patents (including those applied in previous years but granted in 2024).

2,276casesCumulative Patents Applied

1,764casesCumulative Patents Granted

Sustainable Supply ChainAdhering to the commercial values of "fairness and justice, openness and transparency, efficiency andmutual benefit," Muyuan actively builds an interconnected industrial sharing platform and establishesmultidimensional partnerships with business partners. The Company promotes the construction of asustainable supply chain, enhancing suppliers' compliance capabilities in ESG governance, environmentalprotection, and labor rights. These efforts support the low-carbon transformation of the entire value chainand foster an environmentally friendly, sustainable, and competitive industrial ecosystem. As of the end of2024, Muyuan had empowered 8,186 suppliers through its industrial chain, generating over 500,000 jobs, withdomestic Chinese suppliers accounting for 99% of the total.Localized Procurement

Muyuan actively promotes localized procurement, which not only significantly reduces greenhouse gasemissions during transportation but also e? ectively supports local economic development, delivering positiveenvironmental, social, and economic impacts. In 2024, locally sourced grain raw materials accounted for

81.40% of Muyuan's total grain procurement.

Supplier DistributionSuppliers in China (including Hong Kong, Macau, and

Taiwan)

8,164Overseas Suppliers *22Total Number of Suppliers College Application

Guidance Seminars

8,186

*Note 1: Overseas suppliers include those with direct overseas cooperation, as well as those cooperating through domestic agents.

Sustainability Certi? cations for SuppliersMuyuan prioritizes suppliers with sustainability and quality certi? cations. In 2024, 191 suppliers obtained ISO9001 (Quality Management System) certi? cation, and 97 suppliers obtained China HACCP (Hazard Analysis andCritical Control Point for Food Safety) certi? cation.

Supplier Certi? cationQuality Certi? cations (number of

suppliers)

ISO 9001 Certi? ed Suppliers191Food Safety Certi? cations (number

of suppliers)

China HACCP Certi? ed Suppliers97

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●Environmental Management:Suppliers shall adopt clean production methods to control and reduceharmful emissions such as wastewater and exhaust gases generated during operations.●Greenhouse Gases:Suppliers shall reduce greenhouse gas emissions through energy-saving measures,use of clean energy, or other methods.

●Energy Use:Suppliers shall conserve energy and prioritize the use of clean energy.●Water Resources:Suppliers shall use water resources legally and in compliance with regulations,

continuously optimize water e? ciency, and reduce water waste.●

Waste Management:Suppliers shall minimize the generation of waste and dispose of hazardous waste inaccordance with laws and regulations. Suppliers must not import, bring into the country, dump, pile, or placeany overseas solid waste by any means.●Biodiversity:Suppliers shall prioritize the procurement of sustainable soy products, implement zero-deforestation planting or sourcing, and reduce impacts on biodiversity.

Environmental Protection

●

Work Environment and Conditions:Suppliers shall provide employees with a clean and safe workingenvironment to ensure their safety and well-being.●

Occupational Health and Safety:Suppliers shall establish procedures and systems to prevent, manage,track, and report work-related injuries and illnesses, including: establishing health and safety trainingmechanisms; classifying and recording cases of injuries and illnesses, investigating cases and implementingcorrective measures to eliminate root causes; and supporting injured or ill employees in recovering andreturning to work.

Health and Safety

●

Prohibition of Child Labor and Forced Labor:Suppliers shall strictly prohibit child labor and resist anyform of forced labor.●

Compliant Employment:Suppliers shall protect employees' lawful rights and respect their right tocollective bargaining.●

Legal Compensation and Bene? ts : Suppliers shall strictly comply with labor laws, pay employees no lessthan the minimum wage, and provide legally mandated bene? ts.●

Anti-Discrimination: Suppliers shall ensure that employees are not subject to any form of discriminationbased on skin color, race, gender, religion, etc., and shall ensure equal career development opportunities.●Prevention of Abuse and Harassment :Suppliers shall commit to eliminating all forms of abuse and

harassment in the workplace. No employee shall be coerced through harsh or inhumane treatment,including but not limited to verbal abuse, psychological harassment, mental or physical coercion, and sexualharassment.

Labor and Human Rights

Supplier Code of ConductMuyuan has established a Supplier Code of Conduct, which clearly requires suppliers to fulfill theirenvironmental responsibilities, protect labor rights, and actively perform social responsibilities.

Sustainable Supply Chain Strategic Objectives

To enhance ESG governance capabilities in the supply chain and build a sustainable value chain, Muyuan hasestablished the following supply chain targets:

By 2026, achieve 100% ESG training coverage for core suppliers.Supply Chain Capacity Building

By 2025, ensure that 30% of suppliers provide transparency reports covering source, production process, andsocial responsibility performance.

Supply Chain Transparency

By 2026, ensure that 95% of key suppliers meet the Company's sustainability standards, includingenvironmental protection, social responsibility, and governance requirements.Supply Chain Sustainability

Supplier Admission Management and Due DiligenceProcedureMuyuan integrates health, safety, and environmental requirements into the quali? cation review process for newsuppliers. The Company follows the OECD Due Diligence Guidance for Responsible Business Conduct and hasdeveloped a dedicated ESG due diligence procedure for suppliers, which includes three main steps:

Agreement SigningUpon con? rmation that a suppliermeets the admission standards,Muyuan will sign the followingwith the supplier:

? Supplier Code of Conduct? Supply Agreement? Integrity and Anti-CorruptionAgreement? Biosafety Commitment? Supplier Family RelationshipDeclaration? Environmental CommitmentLetter

Evaluate supplier quali? cationssuch as HSE system certi? cations,quality management systemcerti? cations, pollutant dischargepermits, and energy managementsystem certi? cations.

Conduct on-site visits andinterviews to assess suppliers'production and operations,facilities, sta? ng, internalcontrols, and ? nancialmanagement.

On-site AssessmentQuali? cation Review

ESG Risk Assessment in the Supply ChainMuyuan places great importance on ESG risk management in the supply chain and has developed andimplemented a supplier performance evaluation system. The Company conducts semi-annual and annualrisk assessments of all suppliers, focusing on their actual performance and risk issues in areas such as

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In 2024, Muyuan achieved a 100% coverage rate for on-site due diligence of new suppliers and a100% coverage rate for semi-annual and annual risk assessments.

%On-site Due Diligence Coverage Rate

% Risk Assessment Coverage Rate

ESG Training for SuppliersMuyuan provides training for suppliers to enhance their ESG governancecapabilities. Training topics cover anti-corruption, biosafety, supply chain? nance, logistics visualization, and other areas to promote mutual growth.In 2024, the Company empowered 8,144 suppliers through training,achieving 100% ESG training coverage for core suppliers.

%Core Suppliers' TrainingCoverage Rate

Supplier Management PerformanceSupplier contract ful? llment rate: 99.58%,Supplier training coverage rate: 99.49%.

99.58

%Supplier procurement contract compliance rate

99.49

%Supplier training coverage rate

Supplier Compliance Management

Muyuan places a strong emphasis on anti-corruption within supply chain management to ensure that bothparties comply with laws and regulations and foster a clean and upright cooperative atmosphere.

Anti-Corruption Management of Suppliers

Before supplier admission, Muyuan conducts anti-corruption and anti-bribery audits. Potential suppliersare required to attend briefing sessions and can only proceed to cooperation after passing anti-corruptioncompliance assessments. New suppliers must sign an Integrity and Anti-Corruption Agreement, which explicitlyprohibits bribery, improper bene? ts transfer, and other misconduct. They are also required to pay a securitydeposit for integrity compliance. In the event of a violation, Muyuan will deduct the deposit and disqualify thesupplier. In 2024, the signing rate of the Integrity and Anti-Corruption Agreement reached 100%.

Supplier Compliance Due Diligence

Muyuan holds monthly provincial supplier training sessions covering topics such as quality management andanti-corruption to raise awareness and promote a sound business environment. In November 2024, MuyuanLogistics hosted a training conference themed "Establish Integrity Awareness, Build Honest Partnerships",attended by 292 partner companies, all of whom signed the Integrity and Anti-Corruption Agreement.

Supplier Anti-Corruption Training

Muyuan encourages suppliers to report corruption issues. Whistleblowers are rewarded based on the value ofthe information provided. All reports are kept con? dential, and anonymous reporting is accepted. Retaliation isstrictly prohibited.Muyuan enforces a zero-tolerance stance on corruption, prohibiting all forms of bribery, ensuring transparencyand fairness in supply chain cooperation. These measures not only protect the Company's interests andreputation but also promote healthy industry development and the establishment of commercial ethics.

Supplier Anti-Corruption Reporting

Muyuan adheres to the principles of fairness and transparency in supplier management and is committedto treating small and medium-sized enterprises (SMEs) equally. The Company pledges not to delaypayments of accounts payable, e? ectively protecting the rights and interests of every supplier.

Equal Treatment of SMEs

Building a Green Supply Chain

Muyuan minimizes environmental and ecological footprints across its supply chain, with a focus on responsiblesoy procurement. The Company advocates for reduced deforestation by soy suppliers, monitors progress toprevent harm to forests and habitats, and requires traceability of soy products. Suppliers are also required tocomply with international and national-level conservation area standards and protect endangered species.The Company conducts annual reviews of suppliers' sustainability certi? cation progress and encourages moresuppliers to complete sustainable soy certi? cation. In 2024, 40.37% of Muyuan's soy product procurement metsustainable sourcing standards.

environmental governance, labor rights protection, and fulfillment of social responsibilities. Based on theevaluation results, suppliers are classi? ed into four tiers.Based on the evaluation results, suppliers are classi? edinto four tiers. Muyuan conducts on-site assessments twice a year for strategic suppliers. In addition, forsuppliers with signi? cant changes in procurement volume within six months, on-site visits are also conductedduring the same year to ensure a healthy and sustainable supply chain.

Green Supply Chain Strategic Goals

Sustainable Soy Product Procurement

By 2025, 45% of sourced soy products will meet third-party sustainability certifications (e.g., SSAP, zero-deforestation).Supply Chain Carbon Reduction

By 2030, achieve a 10% reduction in supply chain carbon emissions.

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Green Certi?cations of SuppliersMuyuan has established strict standards for sustainable procurement and gives priority to suppliers that haveobtained green and environmental certi?cations. In 2024, a total of 10 suppliers obtained FSC certi?cation, and111 suppliers obtained ISO 14001 Environmental Management System certi?cation. These certi?cations re?ectMuyuan's high standards for suppliers and lay a solid foundation for promoting sustainable developmentwithin the supply chain.

Performance IndicatorsYear 2024Low-soybean Diet

Percentage of Sustainable Soybean Product Procurement

(%)

40.37

Green and EnvironmentalProtection-relatedCerti?cations

Number of Suppliers with FSC Certi?cation10

Number of Suppliers with ISO 14001 (Environmental

Management System) Certi?cation

Supplier ServicesGuided by the vision of "achieving customer success and promoting high-quality development of thepig industry," Muyuan has built a financial service platform for the industrial chain through financialempowerment and data integration among banks, government, and enterprises. In 2024, the Companydeepened cooperation with institutions such as the Agricultural Bank of China and the Bank of China, andintroduced multiple innovative models including reverse factoring, accounts receivable pledge, warehousefinancing, in-transit goods financing, and order financing. These initiatives deliver end-to-end supply chainfinance solutions, supporting partners at every stage of the value chain, helping 1,780 partners obtain atotal of 16.909 billion yuan in financial support, enabling win-win outcomes and contributing to the high-quality development of the pork industry chain.

Financial Services – Empowering Suppliers

To address challenges such as lack of transparency in traditional supply chains,inventory overstock, long supply cycles, and high delivery costs, Muyuanimplemented the centralized warehouse model, building a one-stop supplychain management service platform. This model facilitates seamless digitalintegration across suppliers, centralized warehouses, and end-users. Based onprofessional pig farming supplies, Muyuan has built a smart marketplace thatenables automated order requests, intelligent replenishment, order placement,and shipment through centralized warehouses, significantly improving overallsupply chain efficiency.As of now, 26 centralized warehouses have beenestablished and are in operation, providing e?cient and secure warehousing anddistribution services to 520 quality suppliers, with a total material supply valueof 5.3 billion yuan. This supports national distribution for premium suppliers,reduces overall logistics costs, improves quality, and mitigates biosafety risks.risks.

Centralized Warehouse Model to Improve Supply ChainE?ciency

Muyuan is committed to integrating corporate development with the sustainable development of localcommunities. The Company invests in rural infrastructure, focuses on improving livelihoods and advancingsocial progress, and centers its e?orts on three key areas: supporting farmers, rural infrastructure development,and rural education. Muyuan promotes harmonious economic and social development, aiming to achievepositive interaction among pig farming, the ecosystem, and social progress, and to foster shared prosperitybetween the enterprise and society.

Centralized Supply Chain Hub

Model

Rural Revitalization and GivingBack to Society

As a leading national key enterprise in agricultural industrialization, Muyuan supports farmers'development and income growth from multiple dimensions, providing strong talent support for ruralrevitalization.Supporting Farmers

Central warehouse constructionand operation completed

membersServe high-qualitysuppliers

.

billion CNYTotal Value of ServicedMaterials

Muyuan operates in 25 provincial-level regions, 109 cities, and 225 counties (districts) across China,creating over 100,000 rural jobs. Employment priority is given to local villagers, with an average annualincome of 125.3 thousand yuan. Additionally, the Company has attracted over 40,000 university graduatesto join the agricultural sector, making substantial contributions to rural revitalization.

Job Creation

100,000+Provision of rural employmentopportunities

125.3

thousand CNYPer capita annual incomereached

40,000+

College graduates encouraged to engagein agriculture

Based on farmers' needs, Muyuan dispatches professionals to fields to assist with plowing, sowing, cropprotection, agricultural machinery provision, weeding and bundling, straw removal, drought relief, floodcontrol, and more. These teams offer technical guidance and crop management to improve yields andquality, advancing agricultural modernization. In 2024, Muyuan serviced 4.7208 million mu (approximately314,877 hectares) of farmland, conducted 9,293 agricultural service sessions, covered 14,482 villages,and trained 282 thousand farmers. These efforts helped farmers reduce input costs and increase incomeby 4,712.6 yuan per hectares, resulting in a total additional income of 1.353 billion yuan for farmersthroughout the year.

Increasing Farmers' Income

thousand person-times

Farmers trained

4,712.6

CNY per hectaresIncome increase per muthrough reduced input

.

billion CNYIncome increase of farmers in2024

314,877hectares Farmland served

9,293timesAgricultural technical services

14,482

Villages Covered

99100

6.124

million headsBreeding Pigs & pigletsSupplied

6,334

Service to Farms/Households

Leveraging its corporate strengths, Muyuan promotes industrialconnectivity, linking and empowering farmers to share growth. TheCompany delivers services in areas such as products, technology,digitalization, management, talent, and capital, enabling farmersto share in development achievements. In 2024, Muyuan supplied

6.124 million breeding pigs & piglets to the market and served 6,334

farms/households, promoting specialized production and jointdevelopment.

2024 Swine Industry Development Conference

Industrial Connectivity

Muyuan actively contributes to the construction of beautiful rural communities, painting a vivid picture of ruralrevitalization through ongoing community bene?t projects. As of the end of 2024, the Company had donateda total of 107 million yuan for initiatives such as road construction, street lighting, public squares, greeningprojects, and water infrastructure, covering 1,792 villages and signi?cantly improving the living environmentand quality of life for local residents.

Beautiful Countryside Development

Muyuan has consistently adhered to the philosophy of supporting rural revitalization and fulfilling its socialresponsibilities. Since 2003, the Company has continuously implemented the JU'AI Education Assistance seriesof initiatives, including the Golden Autumn Program, Spring Bud Program, and Spring Rain Program, aimedat improving rural education conditions and supporting educational development. As of the end of 2024, theCompany had donated a total of 434 million yuan. In addition, Muyuan has established a volunteer team tosystematically advance public welfare projects, ensuring their continuity and e?ectiveness.

Supporting Education Development

Spring Rain Initiative:Since 2003, Muyuan has tied corporate

performance to merit-based teacher awards, fostering a cultureof educator empowerment to enhance teaching motivation andrural education standards. As of 2024, cumulative donationsreached 120 million yuan honoring 35.4 thousand exemplaryeducators to drive rural education progress.

Recognizing Outstanding Rural Educators

Spring Rain Initiative

Golden Autumn Initiative:Since 2005, Muyuan has rewarded

outstanding university students to promote learning throughincentives and support talent development. By 2024, theprogram had provided 285 million yuan in scholarships to 99.6thousand university students. In 2024, 49.88 million yuan inscholarships were awarded, helping 17.4 thousand studentspursue their dreams.

Helping Rural Students Realize Their University Dreams

Golden Autumn Initiative

Spring Bud Initiative:Since 2017, Muyuan has donated

schoolbags, stationery, and other supplies to rural childrento improve education conditions. By 2024, the Company haddonated 29.8986 million yuan, distributing love-?lled schoolbaggift sets to 659.3 thousand primary school students, supportingtheir growth and development.

Muyuan's corporate volunteer network mobilizes employees and university students to engage in social impactinitiatives, including education support and community welfare programs.In 2024, 9,702 employee volunteerscontributed 71,852 service hours across 24 Chinese provinces.

Caring for Rural Children

Volunteer Services

Spring Bud Initiative

Muyuan voluntarily aligns with the Universal Declaration of Human Rights, the UN Guiding Principles onBusiness and Human Rights, and the Children's Rights and Business Principles, and is committed to respectingand protecting the human rights of all business partners and stakeholders across the value chain. Muyuanhereby declares its own human rights commitment:

Respect and Protection of HumanRightsHuman Rights Policy

Scope of the Human Rights CommitmentMuyuan's human rights commitment covers all workforce tiers-from directors and management to full-time and contract employees.. Additionally, we encourage all business partners (including suppliers anddistributors) to respect and adopt Muyuan's human rights commitment and to work together with us inpromoting human rights protection.Human Rights Due Diligence

To advance human rights protection, Muyuan will establish human rights due diligence procedures toassess the actual and potential impacts of its business activities on communities and stakeholders, and willdevelop measures to mitigate and reduce any potential negative impacts on human rights.Remediation and Grievance

Muyuan is committed to e?ectively safeguarding human rights in its operations. If the Company's businessactivities are found to have directly or indirectly caused negative human rights impacts, Muyuan shall takeall necessary internal and external measures and procedures to rectify and remedy those impacts and ful?llits responsibility to protect human rights.

Awareness and Training

Muyuan will regularly provide compliance training to employees and business partners. Through bothonline and offline methods, we will communicate Muyuan's human rights commitments and protectionresponsibilities to directors, employees, suppliers, contractors, and other partners, ensuring that ourhuman rights policy is integrated into all business activities across the value chain.

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Stakeholder DialogueMuyuan actively engages in dialogue with stakeholders, handling actual or potential human rights impactsthrough sincere consultation to ensure that stakeholders' concerns are addressed.Transparency and ReportingMuyuan will fulfill its reporting obligations by disclosing reports on human rights protection efforts andresponding to stakeholder concerns.

Muyuan adheres to the principle of "Three No-conflict, Three Shared Benefits", actively engages incommunication with local residents, and establishes interactive mechanisms. The Company respects localcustoms, regularly responds to community concerns, identifies and assesses the direct or indirect negativeimpacts that operations may have on communities, and strives to minimize such impacts. At the same time,Muyuan has established a sound response mechanism to ensure timely and e? ective responses to reasonablecommunity requests.

Three No-conflict:Do not compete with employees over wages; do not compete with farmers overinterests; do not compete with the government over favorable conditions.Three Shared Benefits:Benefit the sustainable development of Muyuan's business; benefit the

development of the local economy; bene? t the livelihood of farming communities.

Community Human Rights Protection

Muyuan publicizes communication and grievance channels at its farms and surrounding villages throughposters and leaflets. Community members can provide anonymous feedback. Issues and requests areforwarded directly to Company headquarters, handled by designated personnel, and responded to 100% toensure proper resolution and enhance public satisfaction.

Villagers can raise concerns directly via the "community liaison groups." On-site sta?respond promptly and coordinate solutions, providing feedback on rectificationprogress to the public.WeChatCommunicationGroups

Muyuan actively invites villagers to visit and observe Company operations,explaining production and management models and answering questions on-site.The Company also proactively visits villagers' homes to listen to their suggestionsand incorporates feedback into internal discussions and implementation.Going Out andInviting In

Community Communication and GrievanceMechanism

Elimination of DiscriminationTreat employees equally and prohibit all forms of discrimination.Prohibition of Child Labor and Forced Labor

Strictly prohibit child labor, forced labor, and bonded labor.Labor RightsProtect employees' lawful rights, including the right to collective bargaining.Wages and Working HoursEnsure that employees' wages are not lower than the statutory minimum standard, establish a faircompensation system, and reasonably arrange working hours.

Safe Working EnvironmentProvide a safe working environment for employees to ensure their physical safety.

When assessing the human rights impacts across various stages of the value chain, Muyuan has identi? ed thefollowing key issues:

Key Human Rights Issues

Employees and Business Partners

Land Use Rights

Respect the land use rights of local communities and ensure legal and compliant use of land.Health and SafetyEnsure environmental safety during operations to avoid adverse impacts on residents' living conditions,health, and water security.

Local Communities

Community Human Rights Impact Assessment

Muyuan has implemented a structured Human Rights Due Diligence (HRDD) framework, ensuring fullcompliance with domestic and regional environmental regulations across project lifecycles to safeguardcommunity welfare.Muyuan enforces rigorous site selection criteria, mandating social and environmental impact assessments(SEIA) during project initiation to align with community interests., and public opinion is solicited to respect thereasonable demands of local residents. Currently, 100% of Muyuan's land lease contracts for farming operationshave been approved through village meetings, ensuring the community's right to know.

Site Selection and Design Phase

All Muyuan farms are equipped with anti-seepage membranes to protect groundwater and ensure communitydrinking water safety. At the same time, all farms apply negative-pressure air ? ltration systems in pig housingto neutralize odors and avoid disturbing nearby residents. All projects strictly comply with environmentalassessment requirements. The Environmental Monitoring Department supervises and inspects to ensure thatpollution prevention facilities are designed, constructed, and commissioned simultaneously with the mainworks, thereby protecting the living environment of community residents.

Construction Phase

A comprehensive supervision and inspection mechanism is in place to ensure compliant production andoperations, preventing negative impacts on surrounding communities. Communication and grievancemechanisms have been established to accept and address direct and indirect negative incidents affectinglocal residents. Based on community needs, Muyuan implements community-bene? t projects, including roadconstruction, street lighting, square construction, and water infrastructure, continuously improving the livingenvironment and quality of life for local residents.

Operation Phase

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Food Safety and Consumer RightsFood Safety Management SystemMuyuan strictly complies with the Food Safety Law of the People's Republic of China, the Law on Quality andSafety of Agricultural Products of the People's Republic of China, the Animal Epidemic Prevention Law of thePeople's Republic of China, the Regulation on Quarantine of Pigs at Their Place of Origin, the Regulations on theAdministration of Veterinary Drugs, the National Food Safety Standard-Maximum Residue Limits for VeterinaryDrugs in Food, and the National Food Safety Standard-Maximum Residue Limits for Pesticides in Food, amongother relevant laws and regulations.The Company has formulated a series of policies and requirements covering the full process of food safetyand quality management, including the All-Staff Food Safety and Quality Supervision Policy and the FoodSafety Supervision and Management Policy. Adhering to the principles of "prevention ? rst, comprehensive riskassessment, full-process transparency and traceability," Muyuan continuously improves its food safety andquality management system to enhance the overall level of control.Food Safety Management StructureMuyuan has established a Sustainable Development Committee responsible for decision-making andadvancing food safety and quality management work. The Quality Control Department oversees and managesthe Company's overall food safety e? orts and reports directly to the Board of Directors.Three major business divisions-the Feed Division, the Pig Farming Production Division, and the SlaughteringDivision-are responsible for food safety and quality management across the entire business chain, with clearlyde? ned responsibilities for each functional department to ensure smooth implementation. Additionally, foodsafety and quality management tasks are executed at the operational level through the regional–district–sitestructure.

Food Safety Management Structure

Muyuan publicly discloses its issue feedback hotline through offline posters,promotional cards, and online media channels. Feedback from the public issent directly to the Environmental Monitoring Department at headquarters andhandled by designated personnel to ensure timely and e? ective resolution, therebyimproving public satisfaction.Public FeedbackHotline

"711" Whole Industry Chain Food SafetyManagementMuyuan applies the "711" full-industry-chain food safety and quality management system to oversee andmanage the entire product chain and lifecycle. By leveraging intelligent and digital tools, Muyuan has built afully traceable system from source to endpoint, enabling e? ective quality and safety management across thewhole industry chain and ensuring food safety from farm to table. This approach strengthens the e? ectivenessof food safety risk management.

"711" Full Industry Chain Food Safety and Quality Management System

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"7" Full-Industry-Chain Food Safety Assurance SystemsMuyuan has established a comprehensive food safety assurance system that spans the entire process-, frominput materials, feed production, farming operations, inspection and testing, live pig sales, slaughtering andmeat processing, to market circulation, supported by a comprehensive set of management systems.

The Company has established a multi-party control system involving quality control, veterinary, nutrition, andprocurement departments, primarily focusing on supplier management, pre-use testing, and routine samplinginspections of veterinary drugs and vaccines to strictly control quality and safety.

Input Assurance

Muyuan conducts comprehensive monitoring and management of raw and auxiliary material suppliers,incoming inspection, processing procedures, and ? nished product testing to fully ensure feed quality.

Feed Assurance

The Company o? ers a full range of technical testing services centered on food and agricultural products. It hasobtained CMA laboratory accreditation and CNAS recognition and can provide testing services in livestock andpoultry products, animal feed, veterinary disinfectants, fruits and vegetables, beverages, etc., covering foodsafety testing and veri? cation from raw materials to ? nished products.

Inspection and Testing Assurance

Muyuan implements strict inspection and quarantine, hygiene management, product standard acceptance, andcompliance management throughout pre-slaughter, mid-slaughter, post-slaughter, and meat cutting stages toensure food safety.

Slaughter and Meat Processing Assurance

The Company strictly controls processes such as drug residue management, disease management, and goodoperating practices, continuously upgrading its biosecurity prevention and control system. A standardizedinternal audit system has been established to improve quality and safety levels.

Farming Production Assurance

The Company focuses on delivery quality management, market product quality research, and customer service.Pre-sales inspections strictly follow the Muyuan Commercial Pig Sales Standards, implementing a quality auditaccountability system and improving the Product Recall Control Procedure and Nonconforming Product RecallDrill Plan to ensure the delivery of healthy products.

Live Pig Sales Assurance

Muyuan carries out quality and safety management across market research, sampling inspections, pre-sales testing, end-customer services, logistics and transportation, complaint handling, and product recallsto comprehensively ensure food safety during market circulation and provide customers with high-qualityproducts.

Market Circulation Assurance

"1" Full-Industry-Chain Food Safety Digital TraceabilitySystem

Muyuan has established a full-industry-chain food safety and quality big data traceability system.Through its smart procurement system, feed management system, production managementplatform, Hongxin testing system, slaughter management system, and sales management system,the Company enables precise data collection from origin to end and full-process digital managementfrom farm to table. This ensures full visibility, control, and traceability across the entire industrychain, safeguarding food safety and quality."1" Muyuan Food Safety Culture SystemMuyuan has built a food safety culture with the commitment of "guarding quality with our lives," establishinga full-chain food safety management framework of "awareness strengthening – institutional standardization –dynamic supervision – closed-loop optimization."Through various means such as food safety training programs, quality certification assessments, dailyeducational content, morning brie? ngs, and case studies, Muyuan ensures that all employees reach a high levelof consensus on food safety standards.The Company has implemented a regular supervision mechanism, a reward-based whistleblowing system,and routine business supervision and inspections to support continuous improvement and closed-loopmanagement, thus safeguarding public food safety.

Food Safety Management Targets

Muyuan adopts a zero-tolerance attitude toward food safety issues. In 2025, our goal is zero food safetyincidents, 100% product pass rate, and 100% external audit pass rate, while continuing to strengthen internalcontrols and management. We aim to maintain a zero product recall record throughout the year.

Food Safety Review

Food Safety Management Measures

GovernmentSamplingInspection

In 2024, Muyuan underwent 1,828 government sampling inspections in the marketsegment, averaging 5 inspections per day, with a 100% pass rate.

1,828timesGovernment Sampling Inspections

%Pass Rate of Sampling Inspections

107108

CustomerAudits

InternalSelf-Inspections

Specialized Training on Food Safety

Food Safety Risk Management

Food Safety and Quality ManagementCerti? cation

Muyuan actively promotes a culture of food safety and quality through various initiatives such as trainingsessions, Food Safety Week, and Food Safety Activity Month. In 2024, the Company conducted 1,680+ foodsafety and quality training sessions, covering management personnel and employees involved in food safety-related operations at all levels. In addition, the Company requires all site employees to sign a Food SafetyCommitment Letter prior to receiving each batch of finishing pigs, achieving a 100% coverage rate, andorganizes food safety oath-taking activities.In the same year, Muyuan launched a company-wide food safety certi? cation program. Based on the relevanceof each department's business to food safety, a tiered examination and certi? cation system was implemented.Throughout the year, 112.1 thousand employees participated in food safety learning and certi? cation, with apass rate of 98.45%.

Adhering to the philosophy of "Guarding Quality with Our Lives", Muyuan has established a food safety riskmanagement system under the direct oversight of the Board of Directors and formulated and strictly enforcesthe Food Safety Incident Response and Handling Procedure. Under this system, the Board has deployed avertical supervision mechanism covering the entire pig farming-to-slaughtering chain, defining responseprocesses for non-compliance incidents such as pre-slaughter urine testing and post-slaughter liver tissuetesting. Food safety indicators are integrated into management performance evaluations. Through a three-tiermanagement system led by the Board-strategic planning, process control, and accountability tracing-Muyuanhas standardized job responsibilities across the entire chain from farming to sales, ensured rapid risk response,and systematically improved food safety incident handling e? ciency to strengthen product quality defenses.

Muyuan adopts internationally and domestically recognized standards endorsed by the Global Food SafetyInitiative (GFSI) across its feed, farming, and slaughtering operations. The Company actively participates inthe revision or formulation of relevant laws, regulations, and local standards such as the 2024 Food SafetySampling Inspection Plan by the State Administration for Market Regulation, the Management Standards forthe Growth and Fattening of Pigs in Large-Scale Farms, and the Epidemic Prevention and Control Guidelines forLarge-Scale Pig Farms. Muyuan is committed to establishing a modern management system aligned with goodagricultural practices (GAP).At the same time, the Company continuously strengthens food safety and quality certi? cations for its suppliersand rigorously controls all aspects of the supply chain to ensure the safety and traceability of pork sourcingfrom the origin.

1,680+casesFood Safety andQuality Training

%TrainingCoverage Rate

%Signing Rate of the FoodSafety Commitment Letter

112.1

thousand personsFood Safety Learningand Certi? cation

Hong Kong Food and Environmental Hygiene Department (FEHD)

inspection of slaughterhouse facilities

Sta? -wide food safety awareness training session

Muyuan strictly complies with the Requirements for Quality Management Systems (GB/T 19001-2016), HACCP System Certification Requirements (V1.0), and the National Food Safety Standard –Hygienic Regulations for Slaughtering of Livestock and Poultry (GB 12694-2016) regarding productrecall management. The Company has formulated a Product Recall Control Procedure, de? ning ? rst-level, second-level, and third-level recall classifications, which are to be initiated within 24 hours,48 hours, and 72 hours, respectively, after identifying a food safety risk. Muyuan is legally obligatedto submit recall plans to county-level or higher regulatory bodies.For example, in cases involvingproduct labeling or identi? cation issues that may mislead or impact consumers or clients, a recall willbe initiated upon approval from the General Manager, and recall information will be disseminatedthrough e? ective media and o? cial channels to inform all customers. The Company conducts annualrecall simulations to ensure e? cient execution in the event of such incidents.

By leveraging the food safety management system across the entire industry chain, Muyuanimplements food safety risk management at every operational stage. Monthly internal reviews andself-inspections are carried out to proactively prevent potential risks. Emphasis is placed on foodsafety training, a robust emergency response and recall mechanism, and an improved supplierscreening process-all contributing to reducing the risk of nutritional or health-related harm for endconsumers.

In 2024, Muyuan underwent 891 external customer audits, including from Hormel, Metro,McDonald's, Yum China, and IKEA, with a 100% pass rate.

External Customer Audits

%

Audit Pass Rate

Muyuan conducts internal audits based on the Farm Process Control and EvaluationSystem. The Quality Control Department carries out 100% bi-monthly self-inspectionsacross all farm sites. In 2024, a total of 28 thousand items were inspected, with no majornon-conformities identi? ed. General non-conformities were disclosed through monthlyFood Safety Self-Inspection and Correction Reports, and the issue rectification ratereached 100%.

Total Items Inspected

%Issue Recti? cation Ratethousand

109110

Customer Rights ProtectionMuyuan always adheres to a customer-centric approach, with the mission of "creating value for customers",and is committed to building a fair and equitable cooperation environment.While delivering high-quality products, the Company continuously optimizes its live pig cooperation model. Ittook the lead in introducing a customer self-pricing model, achieving zero intervention, zero price negotiation,and zero privileges throughout the process to ensure that premium products receive premium pricing.Customers can use the Smart Sales App to open accounts online, sign contracts, submit procurement requests,track logistics orders, and provide feedback. Muyuan ensures timely responses to foster a simple, transparent,and e? cient trading environment.Muyuan engages third-party institutions to conduct customer satisfaction surveys and carries out monthlyon-site visits to distributors and slaughterhouse clients. Focusing on product quality and delivery service, theCompany has established a dedicated project team to streamline data collection and feedback mechanismsbetween upstream and downstream partners, aiming to provide customers with more satisfying products andservices.In 2024, overall customer satisfaction reached approximately 100%.

Animal WelfareMuyuan advocates for scientific pig farming and continuously improves its animal welfare philosophy andpractices to comprehensively enhance the welfare of live pigs.We implement comprehensive management processes to realize Muyuan's vision: treat all animals withkindness, respect their natural behaviors, provide consumers with high-quality pork, save energy, reducecarbon emissions, and achieve green and sustainable development.

Value ChainSegment

Certi? cation Overview

Feed

9 feed mills certi? ed under FSSC 22000 Food SafetySystem Certi? cation.Farming

4 farming sites certi? ed under ChinaGAP;6 farming sites quali? ed to supply live pigs to HongKong and Macao.Slaughtering

10 slaughterhouses certi? ed under ISO 9001 QualityManagement System, with 100% coverage;1 slaughterhouse certi? ed under ISO 22000 FoodSafety Management System, with 10% coverage.VeterinaryDrug Suppliers

GMP certi? cation coverage: 100%.Feed Suppliers

1 supplier certi? ed under BRC;

13 suppliers certi? ed under FSSC 22000;

3 suppliers certi? ed under China HACCP;

1 supplier certi? ed under BAP.

FSSC 22000 Certi? cation

Animal Welfare Management System

Based on its business operations, Muyuan has established clear animal welfare standards across allkey stages, including farm design, infrastructure development, feed procurement, feed processing,pig farming, live pig transportation, and slaughter and meat processing, to ensure that animal welfarepractices are fully implemented throughout every aspect of its operations.Muyuan participated in the compilation of the book Technical Guidelines for Pig Welfare Farming,organized by the National Innovation Alliance for Animal Health and Food Safety. The Company alsocontributed to drafting the group standard T/CVCD 36-2024 Animal-Friendly Farm Grading Evaluation-Pigs. Internally, Muyuan has developed the Animal Welfare Policy, Muyuan Animal Welfare System,and Muyuan Animal Welfare Manual, and has published its Animal Welfare Policy on its officialwebsite.Following these policies and systems, Muyuan has unified its animal welfare standards, clarifiedresponsibilities and incentive mechanisms, and established e? ective control over all animal welfare-related operations, ensuring that the concept of animal welfare is truly implemented in practice.

Muyuan's Vision for Animal Welfare

International Animal

Welfare Standards

Muyuan's Animal Welfare

Policy

Muyuan's Animal Welfare Practices

Freedom from hunger andthirst

Survival Welfare: Nutritionalfeed formulas, free feeding.

Safer and more nutritious feed and drinkingwater: Enclosed feed supply, intelligentfeeding, rich nutrition, one formula one day,water source ultra-filtrationFreedom from discomfort

Comfort Welfare: Suitableenvironment, spring-likeconditions all year round.

More comfortable environment: Fresh airfiltration, precise ventilation, intelligentenvironmental control, intelligent spraying,simulation of natural lighting, sterilization anddeodorization.Freedom from pain, injury,or disease

Health Welfare: Preventionover care, care overtreatment.

More comprehensive health management:

Disease elimination, fresh air filtration,sterilization and deodorization, watersource ultra-filtration, intelligent inspection,abnormality alerts, sound monitoring,antibiotic-free farming.Freedom from fear anddistress

Emotional Welfare:

Respect and love for pigs,humanitarian treatment,harmonious coexistence.

More reasonable transportation andslaughtering: Elevating pig unloadingplatforms, green lighting in lairage pens, CO

stunning.Freedom to express naturalbehavior

Value Creation: Freedom andhealthy growth.

Better alignment with pigs' natural behaviors:

Freedom, happiness, and high-quality pork.

We implement comprehensive management processes to realize Muyuan's vision: treat all animals withkindness, respect their natural behaviors, provide consumers with high-quality pork, save energy, reduce

kindness, respect their natural behaviors, provide consumers with high-quality pork, save energy, reducecarbon emissions, and achieve green and sustainable development.

As of the end of 2024, the following food safety and management certi? cations have been obtained by Muyuanand its suppliers:

111112

Animal Welfare PracticesIn accordance with its animal welfare policies and principles, Muyuan safeguards the healthy growth of pigsthrough key practices such as providing a more comfortable environment, safer and more nutritious feed,comprehensive health management, reduced or antibiotic-free farming, attention to behavioral needs, andmore humane transportation and slaughter.

Safer and More Nutritious Feed and Water

Muyuan has developed multi-stage feed formulas and, through intelligent pipe-chain and feeding systems,implements daily customized feeding plans to provide nutritious and healthy feed. Ultra-filtration of watersources ensures safe and healthy drinking water, meeting the pigs' welfare needs for survival and guaranteeingtheir freedom from hunger and thirst.

A More Comfortable EnvironmentMuyuan treats pig farm design as a critical element of animal welfare, considering scienti?c site selection andbiosecurity. Smart environmental control systems ensure thermal comfort for pigs-warm in winter, cool insummer, and mild year-round. These systems integrate fresh air ?ltration, precise ventilation, smart misting,deodorization, disinfection, and intelligent algorithms to create a comfortable living environment.Pig houses feature biomimetic lighting systems to support natural behaviors.

More Comprehensive Health ManagementMuyuan implements the "SkyNet Project" for disease puri?cation by eliminating infection sources,cutting transmission paths, and protecting susceptible populations to ensure herd health. Anintelligent, three-tier early warning system supports this through inspection robots equipped withcameras, microphones, and infrared sensors to collect image, video, sound, and temperature data forreal-time pig monitoring.The smart inspection system identifies abnormal pigs and sends alerts to farm technicians andmanagers for timely care and treatment.Muyuan uses needle-free smart injectors to precisely control dosage, reduce vaccine quantities,ensure e?ective drug use, and avoid cross-infection risks from traditional needles. This also reducespain and stress in pigs, improving their welfare.More Humane Transportation and SlaughterMuyuan's intelligent transfer system ensures a stress-free environment for pigs during transportation toslaughter, with suitable space and humane handling to eliminate fear. These practices ensure pigs' freedomfrom fear and distress and meet animal welfare requirements.

Muyuan applies high-temperature sterilization technology during feed production, with smart control systemsto precisely regulate sterilization temperatures, ensuring complete sterilization and feed safety. The intelligentpipe-chain system ensures sealed feed transportation, e?ectively preventing biosecurity risks.For lactating sows, Muyuan formulates specialized feed, taking into account colostrum intake, development ofhealthy gut microbiota, piglet weight and vitality-improving piglet quality from the source. For weaned piglets,feed transition plans are optimized to enhance appetite and support adaptation to solid food, promotingdigestive system development. These measures ensure healthy feeding and satisfy pigs' welfare needs forproper nutrition.

Feed Safety and Health Assurance

Muyuan pig farms are equipped with ultra-filtration devices that remove 99.99% of pathogens, providingpigs with sufficient, clean, and fresh drinking water while cutting off waterborne transmission routes. Watersampling is conducted regularly and sent to third-party institutions for testing, following GB 5749-2006standards, to ensure water quality.Muyuan's intelligent feeding system guarantees individualized feeding: one plan per day, one device per pen,one parameter per device, with real-time dynamic regulation. Each pig, depending on its physical condition,receives the optimal feed and water regimen. The system supports real-time monitoring and alerts forabnormalities, ensuring pigs' freedom to drink fresh and healthy water, satisfying their welfare needs.

Drinking Water Safety and Health Protection

To meet pigs' need for fresh air, Muyuan installs air filtration systems at air inlets, achieving up to 99.3%interception rate for viruses like African swine fever. The air entering pig houses reaches ICU air standards,ensuring pig health. At air outlets, deodorization and disinfection systems collect and treat 100% of emissions,achieving 99.9% sterilization and 97% ammonia removal, resulting in odor-free operations that do not disturbnearby communities and ensure surrounding environmental safety.

Fresh Air Filtration & Deodorization

Muyuan does not use inclined unloading bridges but uses height-adjustable unloading platforms to ensurequiet unloading, reduce stress in pigs, and protect personnel safety.

Unloading Platform

Dedicated human passageways are designed to ensure pigs are moved without injury or stress, therebyensuring meat quality. Staff in charge of pig driving receive animal welfare training and are subject toperformance assessments to prevent mistreatment.

Pig Driving Channels

Holding pens are equipped with negative pressure ventilation and mist cooling systems, along with noisealarms to maintain a calm environment. Lighting is carefully managed with green lights to stabilize pigemotions and prevent direct light exposure to their eyes. The entire process from pig dispatch to slaughter,including transport and rest time, is limited to no more than 16 hours, preventing hunger, fear, and stressduring transport, and meeting pigs' welfare needs.

Comfort in Rest Pens Before Slaughter

Muyuan's intelligent environment control system, integrated with smart devices, regulates internal conditionsin real time based on indoor/outdoor temperature, humidity, pig body weight, and population. Using built-inlogic, big data, and cloud platforms, the system triggers real-time alerts for abnormalities. In winter, heating

Smart Environmental Control

maintains warmth; in summer, misting and airspeed cooling ensure comfort. Precise ventilation prevents aircrossover between pens while ensuring fresh air and compliance with air quality standards (e.g., ammoniaconcentration), ful?lling pigs' welfare needs for a comfortable environment.

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Prior to stunning, pigs undergo CO

stunning in groups, which significantly reduces stress. The stunning isconducted using 75–80% CO

concentration, with 6–8 pigs processed per batch, ensuring no convulsionsor vocalizations occur before or during exsanguination. This humane slaughter method ensures that pigsexperience no stress responses or pain.

Swine Slaughter (CO

Stunning)

Pigs do not regain consciousness between stunning and bleeding, and show nosigni? cant reactions post-bleeding, avoiding fright caused by tying, fear, or discomfort.E? ectivenessAssessment:

Prior to CO

stunning, the condition of pigs is assessed. We commit not to apply CO

stunning to pigs with metabolic disorders.ApplicabilityAssessment:

Pigs are given enrichment materials (e.g., straw, chew toys) to encourage species-specific behaviors likerooting, chewing, and exploring. Pens are kept stable with no group mixing, allowing pigs to live with familiarcompanions and satisfy social needs.

Social Needs of Pigs

Alignment with Pig Behavioral HabitsMuyuan promotes animal welfare through environmental design and behavioral guidance, respecting pigs'natural habits and treating them kindly. We commit not to introduce breeds with traits that exacerbateanatomical or metabolic disorders.

Animal Welfare Certi? cationMuyuan regularly conducts internal and third-party animal welfare empowerment certi? cations (as detailedin the Food Safety and Quality Certification Standards and Food Safety Review sections) to continuouslyenhance the standards of animal welfare practices. The Company strictly implements animal welfare policiesand standards. Each month, site-based quality control o? cers conduct process inspections in accordance withGLOBALG.A.P. standards, using the “Farm Process Control Inspection Checklist” to assess the implementationof animal welfare in farms. Outstanding practices are shared and recognized, while non-compliant practices areexplained and re-empowered, with corrective measures jointly developed with on-site management personnel.In addition, Muyuan provides regular daily and quarterly training on animal welfare. External auditorganizations also conduct specialized animal welfare training for all employees, with a training duration of 12hours and a coverage rate of 100%, to ensure e? ective implementation of animal welfare standards.In November 2023, Muyuan's first certified animal welfare farm-Nanyang Muhua No. 1 Farm Line-officiallybegan collaboration with clients. In 2024, two additional farms-Tanghe No.1 Farm Line and Dengzhou No.11Farm Line-passed animal welfare audits conducted by Humane Farm Animal Care (HFAC) and customers. As ofnow, three Muyuan farms are engaged in animal welfare product partnerships with clients.In the future, Muyuan will adopt higher and stricter standards to implement its animal welfare policy,continuously improve the welfare of pig herds, and provide consumers with higher-quality pork.

Antibiotic Use ManagementMuyuan consistently ensures the standardized use of veterinary drugs in strict compliance with national lawsand regulations, aiming to purify diseases and produce antibiotic-free, green, and safe pork products.Antibiotics are used solely for the purpose of treating animal diseases, and their use is reduced through diseasemonitoring, vaccination, biosecurity, and alternative products that focus on preventive health measures.

Antibiotic Management GoalsMuyuan commits to halving antibiotic use by 2027 (vs. 2024 baseline) through precision health managementand disease eradication programs.Disease Monitoring and Prevention

We follow a prevention-first health management principle and have built a comprehensive operationalframework covering biosecurity, swine disease research, diagnostics, and clinical implementation, striving todevelop a high-health pig production management system.

Muyuan has invested a total of 6.38 billion yuan to establish 110 veterinary diagnostic laboratories, building asuper health management platform.R&D for Disease Puri? cation

115116

Muyuan has established a biosafety team of over 1 thousand members, dedicated to preventing externalpathogen introduction and internal disease spread, e?ectively blocking pathogen intrusion.The Company has installed biosafety infrastructure across pig farms, including air ?ltration, sterilization anddeodorization, and precision ventilation, to block pathogen entry and cut o? transmission routes.Standardized biosafety procedures have been implemented throughout the pig farming process, supported byan intelligent biosafety monitoring platform.As of the end of 2024, 74 subsidiaries passed the ASF-free compartment certi?cation, accounting for 32.31% offarming subsidiaries;171 pig farms were selected as standardized demonstration farms for livestock and poultryfarming, accounting for 14.58% of all pig farms.

Biosafety System

Regular Epidemiological Surveys: Monthly, quarterly, and annual monitoring plans are developed for pigs atdi?erent stages to identify the epidemiological patterns of various diseases and develop appropriate preventionand control strategies.Digital Disease Diagnosis System: Feed intake is monitored via intelligent feeding systems, coughing statusis detected by sound devices, and track-inspection robots within production units identify abnormal pigs forearly detection and treatment, ensuring herd health.Muyuan also invites veterinary research teams from Chinaand abroad to provide regular empowerment training, enhancing internal health management capabilities,optimizing platform development, and achieving disease puri?cation and healthy farming.

Smart Equipment Early Warning System: Feed intake is monitored via intelligent feeding systems, coughing

status is detected by sound devices, and autonomous robots within production units identify abnormal pigs forearly detection and treatment, ensuring herd health.Invite domestic and international veterinary research teams to conduct regular empowerment trainingsessions, enhance the health management capabilities of internal employees, optimize platform development,and achieve disease eradication and healthy farming.

Disease Surveillance System

Antibiotic Safety Management

Muyuan strictly adheres to using antibiotics solely for therapeutic purposes, in compliance with all national andlocal regulations, including but not limited to:

? National Plan for Reduction of Veterinary Antimicrobial Use (2021–2025) ? Announcement No. 194 of theMinistry of Agriculture and Rural A?airs (Banning Growth-Promoting Antibiotics in Feed) ? Announcement No.250 of the Ministry of Agriculture and Rural A?airs (List of Banned Drugs and Compounds for Food Animals)Personnel Management:Veterinarian qualification registrations are managed by farm lines, with a 100%

registration rate in 2024. Registered personnel are authorized to prescribe and make medication decisions.Management Guidelines:Antibiotic use is aligned with the health management system to ensure precisionmedication. A full lifecycle drug traceability system has been established, with strict prescription managementto ensure safe and rational use.Measures include:

Strict screening of manufacturers and product quality; no use of products without approved indications for pigs

Establishment of a product quality management systemPrescription control based on drug risk to pigs, the environment, and humansComprehensive regulation of drug use based on categories, age, diagnosis, and sensitivity

Full-chain traceability management from drug procurement → warehousing → usage → on-site monitoring

Management Standards:Across all production processes, personnel, medication, and pig populations are

strictly regulated under a suite of 33 internal policies and standards in 2024, including:

? Red-Line Immunization Management Policy? Veterinary Drug Use Guidelines for Pig Farms? Prescription Slip Management Policy? Medication Red-Line Policy? Veterinary Drug and Vaccine Supplier Management Policy? Animal Welfare Strategic Supplier Management PolicyAdditionally, the use of growth-promoting antibiotics (e.g., Tylosin Premix, Avilamycin Premix, VirginiamycinPremix, Tylvalosin Premix) is strictly prohibited. 25 banned products were eliminated during the reportingperiod.

Based on pig health status and regional characteristics, antibiotic-free protocols are implementedprogressively-starting with ?nishing pigs, expanding to fattening, and eventually covering the entire productioncycle.Three-Stage Antibiotic-Free Plan

Drawing from international best practices, a PRRSV (blue-ear disease) puri?cation color code is piloted:

? Red (high concern), Yellow (under puri?cation), Green (puri?ed)Medication types and usage volumes are managed accordingly across similar farm areas.Health Status Color Code Management

Antibiotics are classi?ed based on their importance and risk to pigs, the environment, and human health, withgraded controls ensuring rational and safe use.Drug Classi?cation Management

Currently, 59 farm sites have passed antibiotic reduction demonstration audits and have beenpublicly recognized at the national level. Key practices include:

? Enhanced health management? Sensitivity-based medication? Rotational drug use strategies

Demonstration Farms for Antibiotic Reduction

Antibiotic Reduction Initiatives

Antibiotic Management OutcomesOn January 26

and March 12, 2025, Muyuan's XixiaNo.3 Farm and Xihua No.15 Farm successfully obtainedantibiotic-free product certifications from CentreTesting International (CTI), marking a significantbreakthrough in antibiotic-free meat production.This achievement reflects Muyuan's high-level healthmanagement and strict drug control, laying a solidfoundation for antibiotic-free fattening operations.Looking ahead, Muyuan will continue advancing stage-based antibiotic-free farming, ultimately aiming forantibiotic-free production across the entire farmingprocess, contributing to higher national standards inantibiotic-free animal husbandry.

Antibiotic-Free ProductCerti?cation for Xihua Farm

Antibiotic-Free ProductCerti?cation for Xixia Farm

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Appendix

ESG Key Performance TableSASB Index TableGRI Index TableIndex Table of SHENZHEN STOCK EXCHANGE?sSelf-Regulatory Guideline for ListedCompany No. 3 - Preparation of SustainableDevelopment ReportsTable of Industry Certi? cationsTable of Laws, Regulations and CompanyPoliciesTable of Muyuan Green and Low-Carbon Crop-Livestock Integration BasesMuyuan Basic Law & Tribute to pigsFeedback Form

119120

ESG Key Performance Table

Operation Performance

Governance Performance

Note 1: 23 data breach risk incidents were successfully intercepted before any data leakage occurred, effectively avoiding the negativeimpacts of information leakage.

Note 1: Dividend amount which had been distributed in 2024.

Performance IndicatorsUnit202420232022

Number of Pigs Soldmillion heads71.60263.81661.201Number of Pigs Slaughteredmillion heads12.52413.2607.362Feed Productionmillion metric tonnes25.31923.17020.370Operating Revenuebillion CNY137.947110.861124.826Net Pro?tbillion CNY18.925-4.16814.933Dividend Distributionbillion CNY4.505

4.0031.488

Performance IndicatorsUnit202420232022

CorporateGovernance

Percentage of Employee RepresentativeSupervisors

%333333Board meeting attendance rate%100100100Board Strategic Committee meetingattendance rate

%100100100Board Audit Committee meetingattendance rate

%100100100Board Nomination Committee meetingattendance rate

%100100100Board Remuneration Committeemeeting attendance rate

%100100100Board Sustainability Committee meetingattendance rate

%100100100

Anti-Corruption

and Anti-Bribery

Investigated corruption and briberyincidents

Number69126106External Regulatory Penalties forCorruption and Bribery

CNY0//Anti-Corruption Whistleblower ReportsReceived and Handled

Number267//Employee Anti-Corruption IntegrityCommitment signing rate

%100100100New Employee Anti-Corruption Trainingand Exam pass rate

%100//Anti-Corruption and Anti-BriberyTraining coverage for key positions

%100//Employee Anti-Corruption educationcoverage rate

%100//Data Security

Major internal information securityincident

Number0//Major internal data breach incident1

Number0//

TaxTransparency

Total taxes paid million CNY8418081162Total taxes paid in China million CNY841//Total taxes paid overseas million CNY000

Performance IndicatorsUnit202420232022

CorporateGovernance

Board of DirectorsPerson777Independent DirectorsPerson333Percentage ofIndependent Directors

%434343Female DirectorsPerson211Percentage of FemaleDirectors

%291414Board of SupervisorsPerson333Female SupervisorPerson111Percentage of FemaleSupervisors

%333333EmployeeRepresentativeSupervisor

Person111

121122

Environmental Performance

Performance IndicatorsUnit202420232022

GHGEmissions

Scope 1 GHG Emissions

million t CO

e5.66854.16473.8945Scope 2 GHG Emissions

million tCO

e4.33433.81543.4056Scope 1 & 2 GHG Emissions

million t CO

e10.00287.98217.3001Scope 3 GHG Emissions

million tCO

e8.6598//Total GHG Emissions

million tCO

e18.6626//GHG Emissions ReductionValue

million tCO

e5.29144.34004.0888GHG Emissions Intensity

tCO

e/tonneprotein

1.461//

EnergyUsage

Power Generated(Photovoltaic)

MWh205,000.0036,884.403,161.30Biogas Utilizedmillion m

37.250034.450725.3190

DiselLiter115,410,000.0079,547,301.7981,893,303.65Natural gasm

137,903,426.00124,220,654.99218,839,075.60Electricity ConsumptionMWh6,985,169.006,045,117.825,142,753.02Total Energy Consumption

t standard coal

equivalent

1,158,759.001,006,482.281,010,437.76Energy ConsumptionIntensity

t ce/t product0.200.200.23

WaterResourcesandWastewater

Discharge

Total Water Withdrawal

million m

214.4920//Municipal WaterWithdrawal

million m

18.0690//Surface Water Withdrawalmillion m

13.7539//Groundwater Withdrawalmillion m

182.2690//Total Water Discharged

million m

6.8027//Surface Freshwatermillion m

1.9313//Groundwatermillion m

0//Oceanmillion m

0//

Performance IndicatorsUnit202420232022

WaterResources and

Wastewater

Discharge

Municipal SewerDischarge

million m

4.8714//COD EmissionConcentration

mg/l24.59//AmmoniaNitrogenConcentration

mg/l0.66//Total PhosphorusConcentration

mg/l0.42//Resource-orientedWater Utilization

million m

179.0546144.4287/WastewaterReused

million m

4.66583.48263.0700Water UsageIntensity (bylivestock product)

m

/t product25.06//Total Water Usage

million m

219.1574188.2853/

Solid WasteDischarged

General Waste Metric tonne65,793.3952,987.05/Hazardous Waste Metric tonne24.20//Incinerated WasteMetric tonne14.13//EnvironmentalCompliance

ComplaintResponse rate

%100//EnvironmentalProtectionViolations

number1052Note 1: The 2024 statistics for GHG emissions cover all operational points and employ a methodology that di?ers from that used in 2023.The main reasons for these di?erences are as follows:(1)The accounting standards have been updated, with an expanded scope andboundaries, incorporating emissions from additional links such as the production and transportation of agricultural inputs and thecultivation of feed raw materials;(2) The selection of emission factors has been updated from the 2006 IPCC Guidelines for NationalGreenhouse Gas Inventories to the Greenhouse Gas Product Carbon Footprint Quanti?cation Methods and Requirements for LivestockProducts and the 2019 Re?nement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories;(3) The electricity emissionfactor reference has changed from provincial average CO

emission factors to the national average electricity carbon footprint factor of

0.6205.

Note 2: The GHG Emission Reduction Value refers to the amount of emissions avoided at the source by the company through initiativessuch as promoting low-soybean feed, pig house heating without fuel burning, and photovoltaic power generation, combined with thecomprehensive emission reduction contributions from technologies like biogas utilization and energy-saving measures.Note 3: The data statistics for Total Water Withdrawal, Total Water Discharged, and Total Water Consumption cover all operational points;Total Water Consumption = Total Water Withdrawal + Wastewater Reused.

123124

Performance IndicatorsUnit202420232022

Employment

Total Number of EmployeesPerson133,642131,276140,403Number of Part-time EmployeesPerson000Number of Employees with LaborContract

Person133,642131,276140,403Number of Employees with LaborDispatch

Person000

EmployeeDiversity

MalePerson107,766103,032108,581FemalePerson25,87628,24431,822Percentage of Female Employees%19.3621.5122.66Number of UndergraduatesPerson39,45935,37635,407VeteranPerson6,5135,8906,561Disabled EmployeesPerson541//Percentage of Disabled Employees%0.4//National MinorityPerson6,870//Employees from Local Community%84.7975.9885.51Employees under 30Person38,77939,17245,029Employees between 30-50Person89,98384,23689,049Employees over 50Person4,8807,8686,325Females in Senior Management%272631

Labor Welfare& Compliance

Labor Contract Signing rate%100100100Social Insurance Coverage rate%100100100Child Labor IncidentsNumber000Forced Labor IncidentsNumber000CareerDevelopmentand Training

Average Training DurationDays37//Training Expensesmillion CNY720700500Training Coverage%100100100

Performance IndicatorsUnit202420232022

Occupational

Health andSafety

Safe Production Investmentmillion CNY150.56198.25192.36Recordable Incident rate

%1.36//Average hours of Health andSafety Training

Hours344443.5Employee Health and SafetyTraining Coverage

%100100100Full-time Safety PersonnelPerson446234Number of Employees ReceivedHealth Check-ups

Person133,642131,276140,403Employee Health Check-upCoverage

%100100100

Product Quality

and Customer

Service

Number of RecallsNumber00/Food Safety IncidentsNumber0//Food Safety Certi?edEmployees

Person112,100//Product Pass Rate for FactoryInspections

%100//Product and CustomerComplaint Response

%100100/

SustainableSupply Chain

Total Number of SuppliersNumber8,1869,500/Number of Suppliers in China(Including Hong Kong, Macao,and Taiwan)

Number8,1649,500/Number of Suppliers OverseasNumber220/Supplier Training Coverage%99.49100100Procurement ContractFul?llment rate

%99.5899.599.5

Social Performance

Note 1: The statistics of employee data cover Muyuan and its subsidiaries, with the statistical scope consistent with the annual report.Note 2: Recordable Incident Rate = (Total Number of Recordable Workplace Injuries and Occupational Diseases × 200,000) / Total workinghours of all employees in the reporting period.

125126

SASB CODETopicMETRICUnit2024 Report

FB-MP-110a.1

GHGEmissions

Global Scope 1 emissions(t) CO

e5,668,500 tCO

e

FB-MP-110a.2

Discussion of long- and short-term strategy or plan tomanage Scope 1 emissions,emissions reduction targets,and an analysis of performanceagainst those targets

n/a

FB-MP-130a.1

EnergyManagement

(1)Total energy consumedGJ33,937,733.59 GJFB-MP-140a.1

WaterManagement

(1)Total water withdrawnm?214,492,000 m?

FB-MP-140a.2

Description of watermanagement risks anddiscussion of strategies andpractices to mitigate those risks

n/a

Muyuan hasimplemented the"Aqueduct Water RiskAtlas," a tool fromthe World ResourcesInstitute, to evaluatewater risks acrossits key operationallocations. The resultsare shared in the WaterManagement chapterFB-MP-140a.3

Number of incidents of non-compliance associatedwith water quality permits,standards and regulations

Number0 Violations

FB-MP-250a.3

Food Safety

(1) Number of recalls issued

and (2) total weight of productsrecalled

Number, t

0 Recalls and 0 tonneproducts recalledFB-MP-250a.4

Discussion of markets that banimports of the entity's products

n/an/a

FB-MP-320a.1

WorkforceHealth &

Safety

(1) Total recordable incident

rate (TRIR) and (2) fatality ratefor (a) direct employees and (b)contract employees

Rate

(1)1.36

;

(2)n/a

FB-MP-320a.2

Description of e?orts to assess,monitor, and mitigate acuteand chronic respiratory healthconditions

n/a/

SASB Index Table

SASB CODETopicMETRICUnit2024 Report

FB-MP-440a.3

Animal& FeedSourcing

Discussion of strategy tomanage opportunities andrisks to feed sourcing andlivestock supply presentedby climate change

n/a

Muyuan primarily refers to thewarming scenarios outlinedin the Fifth AssessmentReport (AR5) published bythe Intergovernmental Panelon Climate Change (IPCC) forits climate change scenarioanalysis. Two long-termscenarios are adopted-anincrease in global averagetemperature of 1.5°C and4°C between 2080 and 2100-to analyze the risks andopportunities associated withclimate change. The resultsare disclosed in the chapteron Addressing ClimateChange.

GRI Index TableGRI Standards Use Statement: Muyuan has reviewed and complied with GRI 1: Foundation 2021,and on this basis, has utilized the GRI Standards to prepare a sustainability report in accordancewith the GRI Standards.

GRIStandard

DisclosureChapter

GRI 2:

GeneralDisclosures2021

2-1 Organizational detailsAbout Muyuan2-2 Entities included in the organization'ssustainability reporting

About the Report2-3 Reporting period, frequency and contact pointAbout the Report2-4 Restatements of informationAbout the Report2-5 External assurance/2-6 Activities, value chain and other businessrelationships

ESG Management and Strategy ; ESG

Materiality Assessment2-7 Employees

Employee Empowerment and

Development2-8 Workers who are not employees

Occupational Safety and Health ; ESG

Key Performance Table2-9 Governance structure and composition

Corporate Governance; ESG

Management and Strategy2-10 Nomination and selection of theHighest governance body

Corporate Governance2-11 Chair of the highest governance bodyCorporate Governance2-12 Role of the highest governance body inoverseeing the management of impacts

Corporate Governance;ESG

Management and Strategy

Note 1: Recordable Incident Rate = (Total Number of Recordable Workplace Injuries and Occupational Diseases × 200,000) / Total workinghours of all employees in the reporting period.

127128

GRI StandardDisclosureChapter

GRI 2: GeneralDisclosures 2021

2-13 Delegation of responsibility formanaging impacts

ESG Management and Strategy2-14 Role of the highest governance body insustainability reporting

Corporate Governance; ESG Management and

Strategy2-15 Con?icts of interestRisk Management2-16 Communication of critical concernsESG Materiality Assessment2-17 Collective knowledge of the highestgovernance body

ESG Management and Strategy2-22 Statement on sustainable developmentstrategy

ESG Management and Strategy2-23 Policy commitments

Risk Management; Table of Laws, Regulations and

Company Policies; Environmental Management、

Employee Empowerment and Development2-25 Processes to remediate negativeimpacts

Employee Empowerment and Development; Risk

Management2-26 Mechanisms for seeking advice andraising concerns

Employee Empowerment and Development; Risk

Management2-27 Compliance with laws and regulationsTable of Laws, Regulations and Company Policies2-28 Membership associations/2-29 Approach to stakeholder engagementESG Materiality Assessment2-30 Collective bargaining agreementsEmployee Empowerment and Development

GRI 3: MaterialTopics 2021

3-1 Process to determine material topics

ESG Materiality Assessment3-2 List of material topics3-3 Management of material topics

GRI 101:

Biodiversity 2024

101-1 Policies to halt and reverse biodiversityloss

Biodiversity and Land Use101-2 Management of biodiversity impactsBiodiversity and Land Use101-3 Access and bene?t-sharingEmployee Empowerment and Development101-4 Identi?cation of biodiversity impactsBiodiversity and Land Use101-5 Locations with biodiversity impactsBiodiversity and Land Use; Water Management101-6 Direct drivers of biodiversity lossBiodiversity and Land Use101-7 Changes to the state of biodiversityBiodiversity and Land Use

GRI StandardDisclosureChapter

GRI 101:

Biodiversity2024

101-8 Ecosystem servicesBiodiversity and Land Use

GRI 201:

EconomicPerformance2016

201-1 Direct economic value generated anddistributed

ESG Highlights and Performance; ESG KeyPerformance Table201-2 Financial implications and other risks andopportunities due to climate change

Addressing Climate Change201-3 De?ned bene?t plan obligations and otherretirement plans

Employee Empowerment and DevelopmentGRI 202: MarketPresence 2016

202-1 Ratios of standard entry level wage by gendercompared to local minimum wage

/202-2 Proportion of senior management hired fromthe local community

ESG Key Performance TableGRI 203: IndirectEconomicImpacts 2016

203-1 Infrastructure investments and servicessupported

Rural Revitalization and Giving Back to

Society203-2 Signi?cant indirect economic impactsGRI 204:

ProcurementPractices 2016

204-1 Proportion of spending on local suppliersSustainable Supply Chain

GRI 205: Anti-corruption 2016

205-1 Operations assessed for risks related tocorruption

Risk Management205-2 Communication and training about anti-corruption policies and procedures205-3 Con?rmed incidents of corruption and actionstaken

GRI 207: Tax2019

207-1 Approach to tax

Tax Transparency207-2 Tax governance, control, and risk management207-3 Stakeholder engagement and management ofconcerns related to tax207-4 Country-by-country reporting

GRI 301:

Materials 2016

301-1 Materials used by weight or volume

Waste and Pollution Management; Low-

Carbon Actions across the Value Chain301-2 Recycled input materials used301-3 Reclaimed products and their packagingmaterialsGRI 302: Energy2016

302-1 Energy consumption within the organization

Low-Carbon Actions across the Value Chain302-2 Energy consumption outside of theorganization

129130

GRIStandard

DisclosureChapter

GRI 302:

Energy 2016

302-3 Energy intensity

Low-Carbon Actions across the ValueChain302-4 Reduction of energy consumption302-5 Reductions in energy requirements of products andservices

GRI 303:

Water andE?uents2018

303-1 Interactions with water as a shared resource

Water Management303-2 Management of water discharge-related impacts303-3 Water withdrawal303-4 Water discharge303-5 Water consumption

GRI 305:

Emissions2016

305-1 Direct (Scope 1) GHG emissions

Addressing Climate Change; ESG Key

Performance Table305-2 Energy indirect (Scope 2) GHG emissions305-3 Other indirect (Scope 3) GHG emissions305-4 GHG emissions intensity305-5 Reduction of GHG emissions305-6 Emissions of ozone-depleting substances (ODS)Not applicable305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and othersigni?cant air emissions

GRI 306:

Waste 2020

306-1 Waste generation and signi?cant waste-related impacts

Waste and Pollution Management306-2 Management of signi?cant waste-related impacts306-3 Waste generated306-4 Waste diverted from disposal306-5 Waste directed to disposal

GRI StandardDisclosureChapter

GRI 308: SupplierEnvironmentalAssessment 2016

308-1 New suppliers that were screened usingenvironmental criteria

Sustainable Supply Chain308-2 Negative environmental impacts in the supplychain and actions taken

GRI 401:

Employment 2016

401-1 New employee hires and employee turnoverESG Key Performance Table401-2 Bene?ts provided to full-time employeesthat are not provided to temporary or part-timeemployees

Employee Empowerment and Development401-3 Parental leaveEmployee Empowerment and DevelopmentGRI 402: Labor/ManagementRelations 2016

402-1 Minimum notice periods regarding operationalchanges

Employee Empowerment and Development

GRI 403:

OccupationalHealth and Safety2018

403-1 Occupational health and safety managementsystem

Occupational Safety and Health

403-2 Hazard identi?cation, risk assessment, andincident investigation403-3 Occupational health services403-4 Worker participation, consultation andcommunication on occupational health and safety403-5 Worker training on occupational health andsafety403-6 Promotion of worker health403-7 Prevention and mitigation of occupationalhealth and safety impacts directly linked by businessrelationships403-8 Workers covered by an occupational healthand safety management system403-9 Work-related injuries403-10 Work-related ill health

GRI 404: Trainingand Education2016

404-1 Average hours of training per year peremployee

Employee Empowerment and Development404-2 Programs for upgrading employeeskills and transition assistance programs404-3 Percentage of employees receivingregular performance and career developmentreviews

131132

GRI StandardDisclosureChapter

GRI 405: Diversityand EqualOpportunity 2016

405-1 Diversity of governance bodies and employees

Employee Empowerment andDevelopmentGRI 406: Non-discrimination2016

406-1 Incidents of discrimination and corrective actionstaken

Employee Empowerment andDevelopmentGRI 407: Freedomof Associationand CollectiveBargaining 2016

407-1 Operations and suppliers in which the right to freedomof association and collective bargaining may be at risk

Employee Empowerment andDevelopmentGRI 408: ChildLabor 2016

408-1 Operations and suppliers at signi?cant risk forincidents of child laborGRI 409: Forced orCompulsory Labor2016

409-1 Operations and suppliers at signi?cant risk forincidents of forced or compulsory laborGRI 411: Rightsof IndigenousPeoples 2016

411-1 Incidents of violations involving rights of indigenouspeoples

Employee Empowerment andDevelopment; Respect andProtection of Human RightsGRI 413: LocalCommunities 2016

413-1 Operations with local community engagement, impactassessments, and development programs413-2 Operations with signi?cant actual and potentialnegative impacts on local communities

GRI 414: SupplierSocial Assessment2016

414-1 New suppliers that were screened using social criteria

Sustainable Supply Chain414-2 Negative social impacts in the supply chain andactions takenGRI 415: PublicPolicy 2016

415-1 Political contributionsNot applicableGRI 416: CustomerHealth and Safety2016

416-1 Assessment of the health and safety impacts of

product and service categories

Food Safety and Consumer RightsGRI 418: CustomerPrivacy 2016

418-1 Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

Food Safety and Consumer Rights

TopicIssueRequirementsChapter

GeneralRequirements andFramework

Assessment of Material Topics

The time frame and period of thereport should be consistent withthe annual report. The outlineshould cover topics of both?nancial materiality and impactmateriality. The reporting entityshould conduct a materialityassessment and disclose theassessment process.

About the Report

ESG Materiality Assessment

Addressing Climate

Change

Addressing Climate Change

The structure and processes bywhich the company oversees andmanages climate change risksand opportunities, as well as therole played by management.

Addressing Climate ChangeESG Key Performance TableLow-Carbon Actions acrossthe Value Chain

PollutionPreventionand Ecosystem

Protection

Emissions

Companies should embedenvironmental protectioninto governance and strategy,disclose emissions data andrelated penalties, and reportframeworks for ecological andbiodiversity risk management.

EnvironmentalManagementWaste Management

Waste and PollutionManagementEcosystem and Biodiversity

Conservation

Biodiversity and Land UseEnvironmental Compliance

Management

Low-Carbon Actions across

the Value ChainResourceUtilization andCircular Economy

Energy UtilizationEnterprises should disclose themanagement, use, and recyclingmeasures of energy, water,and raw materials, along withconsumption data.

Low-Carbon Actions across

the Value ChainWater UtilizationWater ManagementCircular EconomyESG Key Performance TableRural Revitalizationand Giving Back toSociety

Rural Revitalization

The enterprise's actionsand contributions to ruralrevitalization and social welfare.

Rural Revitalization and

Giving Back to SocietySocial ContributionInnovation-drivenDevelopment andTechnology Ethics

Innovation-driven Development

Businesses' pursuit of innovationaligned with scienti?c andtechnological ethics.

Innovation and Intellectual

Property ProtectionTechnology Ethics

Suppliers andCustomers

Supply Chain Security

Supply chain risk management,accounts payable, product andservice quality control (includingafter-sales and recall), and datasecurity practices.

Sustainable Supply ChainEqual Treatment of Small &Medium Enterprises (SMEs)

Food Safety and Consumer

RightsProduct and Service Safety and

Quality

Animal WelfareData Security & Customer

Privacy Protection

Antibiotic Management

Index Table of SHENZHEN STOCKEXCHANGE's Self-Regulatory Guidelinefor Listed Company No. 3 - Preparation ofSustainable Development Reports

133134

TopicIssueRequirementsChapter

EmployeesEmployees

Employee rights protection, healthand safety management, andinternal policy implementation.

EmployeeEmpowerment andDevelopmentOccupational Safetyand Health

Sustainability-

RelatedGovernance

Due DiligenceStakeholderCommunication

The company should disclose thesystems and processes relatedto sustainability governance, aswell as the communication withstakeholders.

ESG Management andStrategyESG MaterialityAssessmentCorporate GovernanceInvestor RightsProtectionRisk Management

BusinessPractices

Anti-Bribery andAnti-Corruption

Disclosure of the company'santi-corruption and anti-briberyframework, including governancestructure, whistleblower protectionmechanisms, and any reportedincidents during the reportingperiod.

Business EthicsAnti-CompetitivePractices

Tax Transparency

Table of Industry Certi?cations

CategoryCerti?cationCerti?ed Operating Sites in 2024

InternationalOrganization forStandardization

(ISO)

ISO 14001

1 feed plant, 8 farms, and 4

SlaughterhousesISO 500014 SlaughterhousesISO 900110 SlaughterhousesISO 450014 SlaughterhousesISO 220001 SlaughterhouseFood SafetySystem

Certi?cation

FSSC 220009 feed plantsCerti?cation inAgriculture andLivestock

China G.A.P4 Breeding farms

Quali?cation for Supplying Live Pigs from

the Mainland to Hong Kong and Macau

6 Breeding farms

National Standardized Slaughterhouse

Construction Certi?cation

4 SlaughterhousesEnvironmental

Certi?cation

National-level Green Factory1 SlaughterhouseProvincial-level Green Factory2 Slaughterhouses

Table of Laws, Regulations andCompany Policies

Theme

ShenzhenStock ExchangeSustainability

ReportingPreparation

Guidelines

Company Policy

Laws, Regulations, and Normative

Documents

Environ-mental

Pollutant Emissionsand Waste

Management

? Environmental Management Measuresfor Feed Production? Management System for HarmlessDisposal of Dead Pigs? Hazardous Waste Management System? Requirements for Limiting Excessive? Packaging of Products, Water Pollution? Control Procedure, Solid Waste PollutionControl Procedure

? Law of the People's Republic of China onthe Prevention and Control of EnvironmentalPollution by Solid Waste? Emission Standard of Air Pollutants for Boilers? GB 18918-2002 Discharge Standard ofPollutants for Municipal Wastewater TreatmentPlant? Technical Speci?cations for PollutionPrevention and Control in Livestock and PoultryBreeding Industry (HJ/T 81-2001)? Regulations on the Prevention and Control ofPollution in Large-Scale Livestock and PoultryBreeding? Technical Speci?cation for HarmlessTreatment of Livestock and Poultry Manure (GB/T 36195)? Technical Speci?cation for Land Application ofLivestock and Poultry Manure? Technical Guidelines for Carrying CapacityCalculation of Livestock and Poultry Manure onFarmland? Discharge Standard of Pollutants for Livestockand Poultry Breeding Industry (GB 18596-2001)? Emission Standard for Odor Pollutants (DB12/059-2018)? Integrated Emission Standard of Air Pollutants(GB 16297-1996)? Pollution Control Standard for Storage andDisposal of General Industrial Solid Waste (GB18599-2020)? Technical Speci?cations for Harmless Disposalof Diseased and Dead Animals? Pollution Control Standard for HazardousWaste Storage (GB 18597-2023)

Environmental

Compliance

Management

? Standards for Identi?cation andManagement of EnvironmentalCompliance Risk Factors? Environmental Protection OperationQuality Management Standards? Work Safety Quality ManagementStandards? Evaluation Standards for EnvironmentalProtection Benchmark Sites? Five Major Opportunities inEnvironmental Protection and OperationManagement System? Environmental Protection Red andYellow Card System? Emergency Response Plan forEnvironmental Incidents? Risk Incident Management System? External Whistleblower RewardStandards

? Environmental Protection Law of the People'sRepublic of China? Technical Guidelines for the Delineation ofLivestock and Poultry Breeding ProhibitedZones? Action Plan for Continuous Improvement of AirQuality

135136

Topic

ShenzhenStockExchangeSustainabilityReportingPreparationGuidelines

Company PolicyLaws, Regulations, and Normative Documents

Environ-mental

Ecosystem andBiodiversityConservation

? Muyuan Low-Soy Feed EnvironmentalProtection Strategy? Land Transfer Management Measures? Six-Party Joint Review System forLand Use Boundaries? Land Documentation and FilingManagement Measures

? Land Administration Law of the People's Republic ofChina? Regulations for the Implementation of the LandAdministration Law of the People's Republic of China? Forest Law of the People's Republic of China? China National Biodiversity Conservation Strategy andAction Plan (2023–2030)

Water ResourceUtilization

? Rural Agricultural Water PipelineManagement System? Standard Water Use ManagementSystem? Water Conservation ManagementMeasures for Slaughterhouses? Water Conservation Incentive andPenalty System for Slaughterhouses? Operation and MaintenanceManagement System for WaterMonitoring Equipment

? Water Law of the People's Republic of China? Standards for Irrigation Water Quality in Farmland (GB5084-2021)

Water ResourceUtilization

? Slaughterhouse Water ConservationManagement Measures? Slaughterhouse Water-SavingIncentive and Penalty System

? Water Law of the People's Republic of China? Standards for Irrigation Water Quality in Farmland (GB5084-2021)

Social

Product and/orService Safetyand Quality

? Muyuan Water Quality Standards forSwine Farming? Common Water Quality Abnormalitiesand Diagnostic Methods? All-Sta? Supervision System for FoodSafety and Quality? Food Safety Supervision andManagement System? Muyuan Commercial Pig SalesStandards? Product Recall Control Procedure? Non-Conforming Product SimulatedRecall Drill Plan? Food Safety Incident Response andHandling System? Muyuan Meat Product DispatchManagement Standards? Customer Complaint ManagementSystem? Breeding Farm Process ControlAssessment System

? Food Safety Law of the People's Republic of China? Law of the People's Republic of China on Quality andSafety of Agricultural Products? Animal Epidemic Prevention Law of the People'sRepublic of China? Animal Husbandry Law of the People's Republic ofChina? Administrative Measures for the Review of AnimalEpidemic Prevention Conditions? Regulations on Quarantine of Live Pigs at ProductionSites? Regulations on the Administration of Veterinary Drugs? National Food Safety Standard - Maximum ResidueLimits for Veterinary Drugs in Food? National Food Safety Standard - Maximum ResidueLimits for Pesticides in Food? Quality Management System Requirements (GB/T19001-2016)? HACCP System Certi?cation Requirements (Version 1.0)? National Food Safety Standard - Hygienic Speci?cationsfor Slaughtered Livestock and Poultry Products (GB12694-2016)? GB 2707-2016 National Food Safety Standard - Fresh(Frozen) Livestock and Poultry Products

Topic

ShenzhenStockExchangeSustainabilityReportingPreparationGuidelines

Company PolicyLaws, Regulations, and Normative Documents

Social

Product and/

or ServiceSafety andQuality

? Meat Product Process Control AssessmentSystem? Animal Welfare Guidelines and Policies? Muyuan Animal Welfare System? Muyuan Animal Welfare Manual? Muyuan Breeding Farm Product RecallSystem? Product Recall Control Procedure? Standardized Use of Veterinary Drugs inLarge-Scale Pig Farms? Red Line Management System forImmunization? Veterinary Drug and Vaccine SupplierManagement System

? NY/T 1897-2010 Guidelines for RandomInspection of Veterinary Drug Residues in Animalsand Animal Products? 2024 National Food Safety Sampling InspectionPlan by the State Administration for MarketRegulation? Management Speci?cations for Growing andFattening Pigs in Large-Scale Pig Farms? Epidemic Prevention Regulations for Large-Scale Pig Farms? National Action Plan for Reducing the Use ofVeterinary Antimicrobials (2021–2025)? Announcement No. 194 of the Ministry ofAgriculture and Rural A?airs: Ban on theProduction of Feed Containing Growth-PromotingDrugs? Announcement No. 250 of the Ministry ofAgriculture and Rural A?airs: List of ProhibitedDrugs and Other Compounds in Food Animals

Employee

Employee

? Labor Contract Management Measures? Personnel Management System? Leave Management System? Attendance Management System? Comprehensive Compensation ManagementSystem? Reserve Cadre Management System? Employee Code of Conduct Manual? Assessment Standards for Violations andPotential Hazards? Special Emergency Response Plan for FireAccidents in Multi-Story Pig Houses? Special Emergency Response Plan for WaterSupply Interruptions in Farm Areas? Emergency Response Plan for Power Outages? Con?ned Operations Space ManagementSystem? Safety Management Regulations forContractors, Partners, and Other RelevantParties

? Labor Law of the People's Republic of China? Labor Contract Law of the People's Republic ofChina? Provisions on the Prohibition of Using ChildLabor? Production Safety Law of the People's Republicof China? Fire Protection Law of the People's Republic ofChina? Emergency Response Law of the People'sRepublic of China? Law of the People's Republic of China on thePrevention and Treatment of OccupationalDiseases? Universal Declaration of Human Rights? Declaration on Fundamental Principles andRights at Work? United Nations Guiding Principles on Businessand Human Rights? OECD Guidelines for Multinational Enterprises? Children's Rights and Business PrinciplesData Securityand CustomerPrivacyProtection

? AI Foundation Model Usage SecurityManagement System? Information System Vulnerability Assessmentand Management System? Cryptographic Security Management System? Information System Access Rights SecurityManagement System? Muyuan O?ce Security Management System? Data Classi?cation and Grading Rules? Muyuan Information Con?dentiality System

? Cybersecurity Law of the People's Republic ofChina? Data Security Law of the People's Republic ofChina? Personal Information Protection Law of thePeople's Republic of China? Basic Requirements for Classi?ed Protection ofCybersecurity (GB/T 22239-2019)Innovation-drivenDevelopment

? Patent Management System? Trademark Usage Management System? Computer Software Usage ManagementSystem? Font Usage Speci?cations? Image Usage Speci?cations

? Trademark Law of the People's Republic ofChina? Copyright Law of the People's Republic of China? Patent Law of the People's Republic of China

137138

Topic

ShenzhenStock Exchange

Sustainability

ReportingPreparation

Guidelines

Company Policy

Laws, Regulations, andNormative Documents

Sustainability-

relatedGovernance

Anti-Bribery andAnti-Corruption

? Integrity and Self-Discipline Management System? Measures for the Penalty of Integrity and Self-DisciplineViolations? Reward Standards for Integrity and Honesty Reporting? Integrity and Honesty Reporting Management System? Cultural Development Management and EvaluationSystem? Whistleblower Reward System

? Criminal Law of the People'sRepublic of China? Civil Code of the People'sRepublic of China

CorporateGovernance

? Articles of Association? Muyuan Basic Law? Rules of Procedure for the Board of Directors? Rules of Procedure for the General Meeting ofShareholders? Investor Relations Management System? Related Party Transaction Decision-Making System? Independent Director System? Annual Report Work System for Independent Directors? Information Disclosure Management System for DebtFinancing Instruments in the Interbank Bond Market? Information Disclosure Management System? Guidelines for Quali?cation Certi?cates and LicenseProcessing? Tax Management Policy? Individual Income Tax Management Policy? Invoice Management Policy? Tax Filing Management Policy? Related Party Transaction Decision-Making Policy ofMuyuan Foods Co., Ltd.? Proposal on the Repurchase of Company Shares

? Company Law of thePeople's Republic of China? Code of CorporateGovernance for ListedCompanies? Opinions on FurtherImproving the Quality ofListed Companies? Securities Law of thePeople's Republic of China? Guidelines for InvestorRelations Management ofListed Companies? Measures for theAdministration ofIndependent Directors ofListed Companies? Guidelines for Self-Regulation of ListedCompanies on the ShenzhenStock Exchange? Rules Governing the Listingof Stocks on the ShenzhenStock Exchange

Table of Muyuan Green and Low-CarbonCrop-Livestock Integration Bases

BaseSitesTechnologyNortheast Saline-

Alkaline RegionSustainable Crop-Livestock Integration

Base

Da'an MuyuanFarm No. 1

Research on the biological fermentation of liquid manure, sealedstorage, compost odor treatment, and the balanced fertilizationtechnology of acidi?ed liquid and chemical fertilizers. Exploring thesynergistic technology of manure return to the ?eld and soda saline-alkali soil improvement.

BaseSitesTechnologyNortheast Plain Region

Sustainable Crop-Livestock Integration

Base

Nongan MuyuanFarm No. 3

Researching the sealed storage fermentation of manure, odorcontrol in composting, and scienti?c manure return-to-?eldtechniques. Developing a comprehensive technology system forthe scienti?c application of livestock and poultry waste to the land,and establishing a green, low-carbon, integrated crop-livestockcirculation model in the Northeast Plain region.Northeast Cold BlackSoil Region Sustainable

Crop-LivestockIntegration Base

Wangkui Muyuan

Farm No. 2

Research manure airtight storage, composting odor control, andscienti?c land application to build a technical system for manureutilization, advancing a green, low-carbon circular Crop-Livestockmodel in Northeast China's cold black soil region.

North China Plain

Sustainable Crop-Livestock Integration

Base

Kenli Muyuan Farm

No. 1

Research on biological acidi?cation, airtight storage, and ?eldapplication of liquid manure to achieve soil desalination and fertilityimprovement, promoting a green, low-carbon circular Crop-Livestockmodel in coastal saline-alkali regions.

East China WaterNetwork Region

Sustainable Crop-Livestock Integration

Base

Guannan MuyuanFarm No. 2

Research odor control, airtight manure storage, di?erentiatedwastewater treatment and reuse, and deep application techniquesfor manure fertilizers to achieve harmony between livestock andpoultry farming and the resource environment; establish a green,low-carbon circular planting and breeding model for water-networked regions..Central and SouthernHill Region Sustainable

Crop-LivestockIntegration Base

Neixiang Muyuan

Complex

Research pig house odor treatment, airtight manure storage,composting odor control, and comprehensive utilization techniquesfollowing classi?ed treatment of liquid manure water quality toachieve synergy between e?cient resource utilization of livestockand poultry manure and green agricultural development; establisha green, low-carbon circular planting and breeding model for multi-story pig farmingSouth China Hill Region

Sustainable Crop-Livestock Integration

Base

Wuming Muyuan

Farm No. 1

Research odor control in pig houses and composting, airtight manurestorage, and classi?ed utilization of liquid manure to enable e?cient,precise land application and promote a green, low-carbon circularCrop-Livestock model in South China's hilly regions.Northwest Arid Region

Sustainable Crop-Livestock Integration

Base

Yongji MuyuanFarm No. 12

Research pig house odor treatment, airtight manure storage, andprecise manure ?eld application techniques to establish a green,low-carbon circular planting and breeding model under typicalconditions of the arid Northwest region.

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Muyuan Basic LawⅠ. Business Purpose:

Ⅱ. Core Values:

III. Business Approach:

IV. Business Principles:

V. Employee Bene? ts:

VI. Customer Bene? ts:

VII. SocialResponsibility:

VIII. Long-LastingDevelopment:

To produce wholesome foods for society, improve the life quality of all, and serve people'senjoyment in an abundant life.Create value and serve society. Be internally and externally upright to promote socialdevelopment.External value outweighs internal value; Long-term interests outweigh immediate interests;The value of humans outweighs the value of things; Common value outweighs individualvalue;Social value outweighs pro? t value; Customer value outweighs production value.Create true value with our own strengths, rather than chasing nominal pro? ts.Seek to maximize social value without shifting burden, shirking responsibilities, or leavingbehind hidden dangers. Take beneficial instead of harmful or rivalrous actions. Staycommitted to creating value, unshaken by highs or lows. Expect no ? uky pro? ts and neverbow for pro? t's sake. Refuse business bribery and turn away from unearned or ill-gottengains. Stand ? rm against speculation, manipulation, or plunder, and never trade integrityfor money. Practice strict self-discipline, shoulder responsibilities, and pursue excellence.Bring benefits for employees. Treat employees as family members, guide their growth,and build a career platform for they fulfilling the value of life. Bring happiness to everyemployee and every family in Muyuan.Help in our customers' successes. Refrain from giving others what we wouldn't accept andoffer what we cherish. Feel for others and treat others with honesty and sincerity. Treatcustomers as siblings and help each other, to embrace fairness, openness, and simplcity,and deliver e? cient and shared success.Put knowledge into action to bene? t society. Balance ? nancial returns with ecological andsocial benefits. Promote environment-friendly and animal-friendly business practices,develop circular economy, adopt cleaner production, and curb air pollution. Continuouslyimprove food quality standards. Act proactively in building industrial ecology andpromoting sustainable development. Actively carry out public welfare undertakings,support education improvement, and fuel social and economic development.Adhere to the values and construct a platform for sharing. Keep pace with the times andexplore the unknown. Face challenges courageously and surpass our limits. Seek a sel? esspath to build a long-lasting company.

Tribute to Pigs

A pig's life is ordinary, yet sublime.

They come to this world quietly, and silently bid goodbye in their time.When they're no longer in sight, they've given all they could provide.A pig's life, in truth, is one of greatness and pride!The spirit of pigs mirrors Muyuan people's devotion inside.

A pig's life is one of giving, pure and true.

Through their life's o? ering, people ? nd joy anew.Today, pigs teach us that life sustains life; only through life can we achieve life's higher worth.Muyuan people bear the noble mission of providing food for all, like our pigs, we give freely, makinglife better for one and all.

A pig's life is one of pure delight.Facing life's precious gift, they ask not for length of days, count not their feed, but grow with joyalways.Today, pigs show us that life's worth lies not in its length but quality. Like them, we trade duration forexcellence, without regrets.A pig's life is ? lled with wisdom.While humans ponder life's meaning and chase fame's embrace, pigs simply live their truth withnatural ease: life's essence lies not in what we take, but what we give to human grace.Today, we hesitate no more, waste no time in debating life's worth; like pigs, we simply give more,calculate less, creating value on earth.We are grateful.

Our business is raising pigs, yet in truth, they sustain our lives.To honor pigs is to honor ourselves, to revere them is self-respect's rise.Let's join with pigs, in simple joy and mirth, giving ourselves to create a life of highest worth!

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