SHENZHENCEREALSHOLDINGSCO.,LTD.

SEMI-ANNUALREPORT2025

【August2025】

SectionI.ImportantNotice,ContentsandInterpretationBoardofDirectors,theboardofsupervisors,alldirectors,supervisorsandseniorexecutivesofSHENZHENCEREALSHOLDINGSCO.,LTD.herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.PrincipaloftheCompanyWangZhikai,HeadofAccountingLuYuheandHeadofAccountingInstitution(AccountingSupervisor)LuChengjunherebyconfirmthattheFinancialReportofSemi-AnnualReport2024isauthentic,accurateandcomplete.AllDirectorshaveattendedtheboardmeetingfordeliberationofthisReport.Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheannualreport,theydonotconstituteasubstantialcommitmentforinvestors.SecuritiesTimes,ChinaSecuritiesJournal,ShanghaiSecuritiesJournalandtheCNINFOwebsite(www.cninfo.com.cn)arethemediaappointedbytheCompanyforinformationdisclosure.AllinformationoftheCompanydisclosedintheabovementionedmediashouldprevail.Investorsareadvisedtoexercisecautionofinvestmentrisks.TheCompanyhasanalyzedtheriskfactorsthattheCompanymayexistanditscountermeasuresinthereport.Investorsareadvisedtopayattentiontoread“Risksfacedbythecompanyandcorrespondingmeasures”inthereportofSectionIII“ManagementDiscussionandAnalysisoftheOperation”.ThisreporthasbeenpreparedinChineseandEnglishversionrespectively.Intheeventofdifferenceininterpretationbetweenthetwoversions,Chinesereportshallprevail.TheCompanyhasnoplanofcashdividenddistributed,nocashbonusandcapitalizingofcommonreserveseithercarriedout.

Content

SectionI.ImportantNotice,ContentsandInterpretation............................................................................................2

SectionIICompanyProfileandMainFinancialIndexes ...... 6

SectionIIIManagementDiscussionandAnalysisoftheOperation ...... 9

SectionIVCorporateGovernance,EnvironmentalandSocialResponsibilities ...... 20

SectionV.ImportantEvents.......................................................................................................................................21

SectionVI.ChangesinSharesandParticularsaboutShareholders..........................................................................25

SectionVII.CorporateBonds.....................................................................................................................................30

SectionVIII.FinancialReport....................................................................................................................................31

SectionIXOtherReportedData ...... 155

DocumentsAvailableforReference

1.Textoffinancialstatementwithsignatureandsealsoflegalperson,personinchargeofaccountingworks

andpersoninchargeofaccountinginstitution;

2.Originalandofficialcopiesofalldocumentswhichhavebeendisclosedinthereportingperiod;

3.Originalcopiesofsemi-annualreport2025withsignatureofthecompany’sprincipal.

Interpretation

SectionIICompanyProfileandMainFinancialIndexes

I.Companyinformation

II.Person/Waytocontact

III.Otherinformation

1.Companycontactinformation

Hastheregisteredaddress,officeaddress,postalcode,website,emailaddress,etc.ofthecompanychangedduringthereportingperiod?

□Applicable?NotapplicableTheregisteredaddress,officeaddress,postalcode,website,andemailaddressofthecompanyremainedunchangedduringthereportingperiod.Pleasereferto2024annualreportfordetails.

2.Informationdisclosureandlocation

Hastheinformationdisclosureandlocationchangedduringthereportingperiod?

□Applicable?NotapplicableThewebsiteandmedianameandwebsiteofthestockexchangewherethecompanydiscloseditssemi-annualreport,andtheplaceofplacementofthecompany’ssemi-annualreportremainsunchangedduringthereportingperiod,asdetailedin2024annualreport.

3.Otherrelevantinformation

Isthereanychangeinotherrelevantinformationduringthereportingperiod?

□Applicable?NotapplicableIV.Mainaccountingdataandfinancialindexes

IstheCompanyrequiredtoretrospectivelyadjustorrestateprioryear’saccountingdata??Yes?NoReasonsforretrospectiveadjustmentorrestatementBusinesscombinationundercommoncontrol

Netprofitafterexcludingtheimpactofshare-basedpayments

V.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina

1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)

?Applicable□Notapplicable

InRMB

2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeign

accountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)

□Applicable?Notapplicable

3.ExplanationondatadifferencesundertheaccountingstandardsinandoutofChina;asforthe

differencesadjustmentauditedbyforeignauditinginstitute,listednameoftheinstitute

□Applicable?NotapplicableVI.Itemsandamountsofnon-recurringgains/losses

?Applicable□Notapplicable

InRMB

Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems

Othergains/lossesthatconformtothedefinitionofnon-recurringgains/losses:

□Applicable?NotapplicableTheCompanydoesnothaveothergains/lossesthatconformtothedefinitionofnon-recurringgains/losses.Informationonthedefinitionofnon-recurringgains/losseslistedintheQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---Non-recurringGains/LossesasRecurringGains/Losses

□Applicable?NotapplicableTheCompanydoesnothaveanynon-recurringgains/losseslistedintheQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---Non-recurringGains/LossesasRecurringGains/Losses.

SectionIIIManagementDiscussionandAnalysisofthe

OperationI.MainbusinessesoftheCompanyduringthereportingperiod

MainbusinessoftheCompanyincludesthewholesaleandretailbusiness,foodprocessingandmanufacturingbusiness,leasingandcommerceservicebusiness.Thewholesaleandretailbusinessaremainlyrice,wheat,riceinthehusk,corn,sorghum,cookingoilandothervarietiesofgrainandoilaswellasthesalesoffinetea,beverageandcondiment.Duringthereportingperiod,thecompanyovercamemanyadversefactorssuchasdeclineinmarketdemandandfluctuationofgrainprice,tookmultiplemeasurestoensuresupplyandstablesupply,andcontinuedtooptimizetheproducts,strengthenthebrandandexpandthemarket.Mainlysuppliedwheat,rice,corn,barley,sorghumandotherrawgraintocustomerssuchastheindustry'slargetraders,feedprocessingandflourprocessingenterprises;mainlysoldrice,flour,cookingoil,high-qualitytea,beveragesandotherproductstodemandunitsandcommunityresidents.

Foodprocessingandmanufacturingbusinessaremainlytheprocessingandthetechnologyresearchinaspectofflour,rice,cookingoil,teaandnaturalplantextracts,beverageandcondimentsetc.Thecompany’sflourbrandsandproductsinclude“Jinchangman”,“Yingshanhong”and“Hongli”seriesbreadflour;“Clivia”and“Canna”seriestailoredflourforcakesandsteamedbun;“Sunflower”wheatflourfornoodlesandcookieflour;“Tianlvxiang”wheatflourforbread,refinedflouranddumplingflouretc.;Riceproductsinclude“ShenliangDoximi”,“Guzhixiang”,“Gufengxianman”,“Runxiangliangpin”,“Hexiang”and“TaitaiFukou”.Cookingoilproductsincludebrandssuchas“ShenliangFuxi”,“ShenliangJinxi”and“Youtian”.Teabrandsmainlyinclude“JuFangYong”tea;“Yichong”freshextract,“Jindiao”instantteapowderandotherteadeep-processedproducts,aswellas“Shenbao”chrysanthemumtea,lemontea,and“ChaMiXiangQi”andotherseriesofteadrinks.Condimentsaremainly“Sanjing”oystersauceandsauces.Severalbrandshaveformedproductseries,including“SZCHYushuiqing”rice,noodles,oil,andcoarsecerealsseries,“Jiaxi”rice&noodlesseries,“Jinchangman”noodles&oilseries,“SZCHDuoxi”rice,oil,drinkingwater,non-staplefoodandcondimentseries,etc.,andthelaunchofJinyueteawinecontinuestoenrichtheproductstructure.“GrainDuoxi”rice,oil,miscellaneousgrains,mushroom,nutseries,etc;Thelaunchof“JinYue”teawinecontinuedtoenrichtheproductstructure.

Theleasingandbusinessservicereferstoprovidingtheprofessionalimport&exporttrade,warehousing&storage,logistic&distribution,qualityinspection&informationtechnologyservices,propertyleasingandmanagement,businessoperationmanagementservicesforallkindsofclientsintheupstreamanddownstreamoftheindustrialchain,byusingtheadvantageofbrandreputation,operationservicecapacityandfacilitytechnologythataccumulatedinfieldofgrainandoilmarket.Dongguansmartgainlogisticscomplexisacomprehensivegraindistributionservicebodyintegratingfivemajorfunctions:grain&oilterminal,transitreserve,testing&distribution,processing&productionandmarkettrading;ShenliangQualityInspectionwasawardedas“GuangdongShenzhenNationalGrainQualityMonitoringStation”.ShenliangPropertyisaprofessionalassetsmanagementplatformenterprise.

II.Corecompetitivenessanalysis

Thecompanyenhancestheendogenouspowerbydeepeningreform,strengthensthe“extensive”developmentbyinnovationcooperation,andcontinuouslyupgradesandtransformsthegovernancepattern,developmentquality,andguaranteeability,andhasembarkedonapathofsustainableandhigh-qualitydevelopmentthroughself-innovation,andbecomeahighlycompetitive,innovativeandinfluentialbackbonegrainenterpriseinthedomesticgrainindustry.

(1)Operationmechanism

Thecoremanagementteamofthecompanyhasrichexperience,andhasastrongstrategicvisionandpragmaticspirit.CombinedwiththeactualdevelopmentoftheCompany,formulatedasetofeffectivemechanismstopromotethequalityandefficiencyofbusinessdevelopment.Thecompanyvigorouslypromotestheinnovationandtransformationofbusinessmodels,andactivelypromotesthetransitionfrom“trade-orientedenterprises”to“service-orientedenterprises”,andfrom“operationalmanagementandcontrol”to“strategicmanagementandcontrol”.Inbusinesscontrol,throughtheowninformationmanagementsystem,realizesaseamlesslinkbetweenthe“operation”and“planning,capital,qualityinspection,inventory,riskcontrolanddiscipline”,effectivelyreducestheoperationalriskswhilefullyparticipatinginthemarketcompetition,andachievingadeepintegrationof“ensuringgrainsecurity”and“promotingdevelopment”.Throughdeeplypromotesthestrategyof“talentstrengtheningtheenterprises”,continuouslyinnovativetalenttrainingmechanismtocreatesahigh-qualitytalentsupplychain,thecompanyhasestablishedanopentalentteamtomeetthelong-termdevelopmentofenterprisesandreserveintelligencefortheenterpriseupgradinganddevelopment.Thecompanyhasinnovatedandimplementedtheperformanceappraisalmechanismandestablishedaresult-orientedincentiveandrestraintassessmentmechanismwhicheffectivelybuilttheperformancecultureandstimulatedtheviabilitywithintheenterprise.Thecompanyinsistsoncultivatingandadvocatingthecorporateculturewith“people-oriented,performancefirst,excellentquality,andharmony”asthecorevalues,combinesthepersonaldevelopmentgoalsofemployeeswiththecorporatevision,andenhancesthecohesivenessandcentripetalforceoftheenterprise.

(2)BusinessmodelThecompanydeeplyengagesinsegmentingthetargetmarket,providesdiversifiedproductsupplyservicesforcustomersindifferentareasoftheindustrychain,establishesamulti-levelproductsupplynetworkcoveringonlineandoffline,andrealizesthetransformationofproductsupplyto“remoteness,intelligentization,andself-service”.Intermsofgrainandoiltradingservices,thebulkcommoditytradingplatformwww.zglsjy.com.cncreatedbyitssubsidiaryHualianCompanyefficientlyintegratesbusinessflow,logistics,andinformationflow,improvescirculationefficiency,andprovidesspotlistings,one-waybidding,basisprice,financing,logistics,qualityinspection,informationandotherservicesforinternalbusinessunits,suppliersandcustomers.Intermsofe-commerce,SZCHDoximiactivelypromotesthedevelopmentofnewgrainretailformatssuchas“Internet+Grain”andhasopenedchannelsone-commerceplatformssuchasTmallandJingdongMallsoastopromotethedeepintegrationofonlineandofflinee-commerceplatforms.Intermsofgroupmealsupply,itssubsidiarySZCHBighasestablishedaone-stopdistributionserviceplatformservinglargeendcustomers,providinghigh-qualityoilandgrainservicesforgroupuserssuchasenterprises,schools,andgovernmentinstitutions.

(3)InformationtechnologyThecompanyattachesgreatimportancetothetransformationandupgradingoftraditionalindustrieswithmoderntechnologicalmeans,andactivelyintroducesnew-generationinformationtechnologiessuchastheInternetofThings,cloudcomputing,bigdata,andmobileInternetintograinmanagement,forminganinformationsystemthatcancovertheentireindustrialchainofthegrainindustry,andpromotingthe“Internet+Grain”industrydevelopment.Thecompany’sinformatizationconstructioncapabilityisattheleadinglevelinthegrainreservesindustry,takingtheleadinbuildingthewarehousemanagementof“standardization,mechanization,informatization,andharmlessness”intheindustry,theself-developed“GrainLogisticsInformationSystem(SZCGGLS)”hasbuiltaframeworkfortheconstructionofgraininformatizationwork,innovatedthegrainmanagementmodel,ledthedevelopmentdirectionofthegrainindustry,andbecameabenchmarkforthenationalgrainindustry.Theprojectwasawardedthe“NationalIoTMajorApplicationDemonstrationProject”bytheNationalDevelopmentandReformCommissionandtheMinistryofFinance.Thecompanyhasundertakenanumberofnational-levelresearchprojects,theresultsofanumberofinformatizationprojectshavewonnational,provincialandmunicipalawards,anddozensofinformationsystemshavebeendevelopedandareoperatingnormally.

(4)R&Dcapabilities

Thecompanyhasstrongresearchanddevelopmentcapabilitiesinthefieldoffoodandbeverage,andgathersleadingtechnologicaladvantagesandequipmentsystems.ThesubsidiaryShenbaoHuachengownstheGuandongengineeringtechnologyresearchcenter,Jiangxiprovincialenterprisetechnologycenter,Shenzhenmunicipalresearchanddevelopmentcenter(technologycenter)andShenzhenplantdeepprocessingtechnologyengineeringlaboratoryandhaveobtainednationalhigh-techenterprisecertification.Andalsoownsanumberofpatentedtechnologiesforteapowder,teaconcentratedjuiceandplantextractionindependentlyresearchedanddeveloped,publisheddozensofscientificpapers,andwonanumberofawardssuchasScienceandTechnologyProgressAwardoftheMinistryofAgriculture,ShennongChineseAgriculturalScience&TechnologyAwardoftheChinesSocietyofAgriculture,Science&TechnologyAchievementAwardofChineseAcademyofAgriculturalSciences,ScienceandTechnologyAwardofChinaNationalLightIndustryCouncil,ZhejiangScienceandTechnologyAward,JiangxiScienceandTechnologyProgressAwardandShenzhenScience&TechnologyProgressAward,etc.,presidedoverorparticipatedinthepreparationofseveralnationalstandardsandindustrialstandards.

(5)Qualitycontrol

Thecompanyimplementsgrainandoilqualitystandardsthatarehigherthannationalstandards.ThesubordinateShenliangQualityInspectionhastheleadinggrainandoilqualityinspectiontechnologyandequipmentinthedomesticgrainindustry,andisincludedinthenationalgrainqualitysupervisionandinspectionsystem.Itwasawardedthe“GuangdongShenzhenNationalGrainQualityMonitoringStation”bytheStateAdministrationofGrainandobtainedtheassessmentcertificateofagriculturalproductqualityandsafetyinspectionagency(CATL)andthequalificationcertificateofinspectionagency(CMA)etc,andpassedthecertificationofnearlyonethousandtestingcapabilityitems.ShenliangQualityInspectionlistspesticideresidues,heavymetalpollutants,fungaltoxinsandotherhygieneindicatorsaswellasfoodtasteindicatorsinthedailyinspectionindicators.Ithasthetestingcapabilityforfourcategoriesofindicators,includingconventionalgrainquality,storagequality,andfoodsafety.Thedetectioncapabilitycanmeettherelevantqualitydetectionrequirementsofgrainandoilproducts,andcanaccuratelyanalyzethenutritionalcompositionandhygienicindicatorsofthegrainanddetermineitsstorageandediblequality.Ithascreatedthe“digitallaboratory”inthegrainindustry,real-timemonitoringoftheentireprocessofcuttings,testing,distribution,etc.,relyingoncollaborativeplatformstosave,retrieve,integrate,analyzeandsharegrainandoiltestingdatatoachieve100%coverageofgrain&oilproductinspection.Hastheinternationallyrecognizedqualitycontrolsystem.ItssubsidiaryShenbaoHuachengCompanyhasestablishedaqualitycontrolsystemrecognizedbylargeinternationalfoodandbeveragecompanies.

(6)Brandeffect

Thecompanywasawardedthe“Top500ServiceEnterprisesinChina”,“China’sMostInfluentialGrain&OilGroup”,“ChinaTopTenGrainandOilGroups”,“ChinaTop100GrainandOilEnterprises”,“NationalLeadingEnterpriseSupportingGrainandOilIndustrialization”,“NationalQualityBenchmark”and“Top10FoodDigitalTechnologyApplications”.Ithasbeenselectedasoneofthe“FirstBatchofNationalEmergencyFoodSecurityEnterprises”,“Top100AgriculturalIndustrializedHeadEnterprisesinChina”,“Top10HeadEnterpriseintheGrainIndustry”and“TheNationalDemonstrationEnterpriseofAssuredGain&OilDemonstrationProject”,etc..Itisthe“RiceBag”trustedbythepublic.Strengthenbrandleadership,activelyexploreandcultivateexcellentpublicbrands,relyonqualitytowinrecognition,reputationandmarketshare,andformaseriesofhigh-qualitygrainandoilproductscenteredonChinaGoodGrainandOil,ShenzhenWell-knownBrands,andShenzhenProducts.Thecompanyownswell-knownbrandsandplatforms,suchas“ShenzhenFlour”,“SZCHDuoxi”,“SZCHYushuiqing”,“BigKitchen”,“ShenbaoTeaStore”,“JuFangYong”,“ChaMiXiangQi”,“Sanjing”,“www.zglsjy.com.com”,and“doximi.com”.III.Mainbusinessanalysis

Overview

Inthefirsthalfof2025,facingachallengingmacroeconomicenvironmentandpressingdevelopmenttasks,thecompanyfocusedonitscorebusiness,strengthenedtheimplementationofkeyprojects,andmaintainedoverallperformancecharacterizedby“pressureontasks,orderlyplanning,andimprovedefficiency.”Operationsremainedstablewithsteadyprogress,andthe

developmentfoundationcontinuedtostrengthen.AsofJune2025,thecompany’stotalassetsstoodat7.059billionyuan,withnetassetsof4.924billionyuan,maintainingahealthyandstableasset-liabilityratioof30.24%andawell-controlledfinancialstructure.Duetomarketfluctuationsinthenon-grainandoilsegments,operatingrevenuewas2.384billionyuan,representingaslightyear-on-yeardecreaseof1.33%.However,throughoptimizingthebusinessstructureandactivatingidleassets,thecompanyachievedatotalprofitof219millionyuan,up33.28%year-on-year,deliveringcounter-cyclicalgrowth.Inthefirsthalfof2025,withtheguidingprincipleof“ensuringgrainsupplystabilityandimprovingqualityandefficiency,”thecompanyenhancedcapabilities,improvedmechanisms,andpromotedoperationstobuildamodernmanagementsystemcoveringthefulllifecycleofreservegrain.Underthedualdriversofsystematicallyoptimizingoperationalprocessesanddynamicallyallocatingresources,allstoragefacilitiescoordinatedefficiently,significantlyimprovinginboundandoutboundlogisticsefficiency;thecompanysuccessfullypassedprovincialandmunicipalinspectionsofpolicy-basedgrainandoilreserves,withquantitiesverified,qualityuptostandard,andstockconditionsstableandreliable,andcompletedthe2025municipalreservegrainandoilstockincreaseaheadofschedule;thecompanyestablishedShenliangIntelligentStorageCo.,Ltd.,operatingreservegrainmanagementasanindependentbusiness,andmadesolidprogressonseveralinitiatives,includingtheupgradeofthegrainconditiontemperaturemonitoringsystemandtheGrainConditionCloudPlatform.Overall,thecompany’scorebusinessfoundationcontinuedtosolidify,itscapacitytosafeguardfoodsecurityfurtherimproved,anditdemonstratedstrongoperationalresilienceanddevelopmentpotentialduringaperiodofdeepindustryadjustment.Thecompanyacceleratedtheimplementationofkeyprojects.TheDongguanlogisticshubmadefulleffortstoadvanceinfrastructureconstructionandfunctionalupgrades.ExpeditedtheconstructionofPlantNo.2andBerthNo.3attheA3site.ContinuedtorefineandupgradetheequipmentandprocessesatBerthNo.4.ConstructionandoperationalpreparationoftheShenshanGrainDepotadvancedinparallel.Thecompanysuccessfullysecuredtheoperatingrightsforthedepot,andtheShenshanGrainDepotbranchhascompletedbusinessregistration.Themainstructuresofboththesouthernandnorthernwarehouseareashavebeenlargelycompleted,andtheprojecthasfullyenteredthestageofelectromechanicalequipmentinstallation,commissioning,andinformationsystemdevelopment.Inlinewiththeestablishedplan,keytaskssuchasstockcompressionmanagementandgrainrelocationhavebeenadvancedinanorderlymanner,layingasolidfoundationforsubsequentoperationalmanagement.Thecompanyachievedabreakthroughinvaluecreationthroughstrategiessuchasdeepeningchannelnetworks,innovatingtheproductportfolio,andenhancingbrandvalue.DongguanLogisticsopenedanewbusinesstrackintheoatsegment,continuedtoadvancecreditcooperationwithmultiplestate-ownedgrainreservedepotsinthePearlRiverDelta,andworkedonbuildingasoybeansupplychainplatform.Byextendingthetransshipmentbusinesssupplychain,thecompanydevelopedaninnovative“volume-pricelinkage”businessmodelandlaunchedadedicatedlinerrouteconnectingYangtzeRiverDeltaportswithYijiaLogisticsandtheShenliangDongguanLogisticsterminal.Thisseamlessintegrationof“North-SouthPorts+Logistics+Warehousing”acrossthefullindustrychainhasboostedrevenuefromtransshipmentoperations.TheTradingCompanyexpandeditsindustrialcustomerbase,drivinggrowthinindustrialricefloursales.TheFlourCompanylaunchednewproductssuchasindustrialnoodleflourandspecialtybreadflour,securingmultiplenewclients.TheOils&FatsCompanycloselymonitoredmarkettrendstoachievegrowthinbulktradevolumes.Intermsofbrandvalueenhancement,HualianCompanycontinuedtoadvancedeep-processingcooperationwithleadingfeedandlivestockenterprises,withsalesofits“ShenliangShuangbao”riceincreasingyear-on-year.BigCompanydevelopedthe“MicangMarket”platform,establishedanumberofstableclients,andwasrecognizedasan“11

th

BatchNationalAssuredGrainandOilDemonstrationProcessingEnterprise”anda“KeyLeadingAgriculturalEnterpriseinGuangdongProvince.”Doximicontinuedtoexpanditsbusinessintheliquorsector,achievingyear-on-yeargrowthinsalesrevenueforthefirsthalfoftheyear.ShenliangFoodsadvancedbothonlineandofflinechannels,developingproductssuchaslemongrasslemonteaanddeep-processedcornproducts.

Industryintegrationadvancedinanorderlymanner.ThecompanycompletedtheinternaltransferofequitybetweenMountWuyiShenbaoRockTeaCo.,Ltd.andHangzhouFuhaitangTeaEcologyTechnologyCo.,Ltd,promotingresourceintegrationin

theteadeep-processingsegment.Intermsofcollaborativeintegration,leveragingthe“FushiJi”brandasabridge,thecompanyachievedastrategicupgradefromsingle-pointbreakthroughstogroup-widesynergy.Multiplesubsidiaries,includingDoximi,BigKitchen,ShenshenbaoInvestment,joinedthe“SeasonalDining”FutianPavilionandparticipatedinvariouspromotionaleventssuchasthe“FushiJi”NewYearGoodsFestivalandtheDragonBoatFestival.Throughresourceintegrationandbrandcollaboration,thecompanyhasbuiltanewpatternofdeepcooperationacrosstheupstreamanddownstreamoftheindustrialchain.Year-on-yearchangesinmajorfinancialdata

InRMB

Therehavebeensignificantchangesinthecomponentorsourcesofprofitsduringthereportingperiodofthecompany

□Applicable?NotapplicableTherehavebeennosignificantchangesinthecompositionorsourcesofprofitsduringthereportingperiodofthecompany.Componentofoperatingincome

InRMB

Industries,productsorregionsthataccountformorethan10%oftheoperatingincomeoroperatingprofitoftheCompany?Applicable□Notapplicable

InRMB

Intheeventthatthestatisticalcaliberofthecompany’smainbusinessdataisadjustedduringthereportingperiod,themainbusinessdataofthecompanyhasbeenadjustedaccordingtothecaliberattheendofthereportingperiodinthepastyear.

□Applicable?Notapplicable

IV.Analysisofnon-mainbusiness

?Applicable□Notapplicable

InRMB

V.Analysisofassetsandliabilities

1.Majorchangesofassetscomponent

InRMB

2.Majoroverseaassets

□Applicable?Notapplicable

3.Assetsandliabilitiesmeasuredatfairvalue

?Applicable?Notapplicable

4.Theassetsrightsrestrictedtillendoftheperiod

VI.Investmentanalysis

1.Overallsituation

?Applicable□Notapplicable

2.Themajorequityinvestmentobtainedinthereportingperiod

?Applicable?Notapplicable

3.Themajornon-equityinvestmentperformedinthereportingperiod

?Applicable?Notapplicable

4.Financialassetsinvestment

(1)Securitiesinvestment

?Applicable?NotapplicableTheCompanyhasnosecuritiesinvestmentinthePeriod

(2)Derivativeinvestment

□Applicable?NotapplicableTheCompanyhasnoderivativesinvestmentinthePeriod

5.Applicationofraisedproceeds

□Applicable?NotapplicableTherewasnouseofraisedfundsduringthereportingperiodofthecompany.

VII.Salesofmajorassetsandequity

1.Salesofmajorassets

□Applicable?NotapplicableTheCompanyhadnosalesofmajorassetsinthereportingperiod.

2.Salesofmajorequity

□Applicable?Notapplicable

VIII.Analysisofmainholdingcompaniesandstock-jointlycompanies?Applicable□NotapplicableParticularaboutmainsubsidiariesandstock-jointlycompaniesnetprofitover10%

InRMB

ParticularaboutsubsidiariesobtainedordisposedinreportingperiodApplicable?NotapplicableExplanationonmainholding/stock-jointlycompanies:

ShenzhenCerealsGroupCo.,Ltd:Businessscope:generalbusinessitems:grainandoilpurchaseandsales,grainandoilstorage;grainandoilandproductsmanagementandprocessing(operatedbybranches);operationandprocessingoffeed(operatedbyoutsourcing);investmentingrainandoil,feedlogisticsprojects;establishinggrainandoilandfeedtradingmarket(includinge-commercemarket)(marketlicenseisalsoavailable);storage(operatedbybranches);development,operationandmanagementoffreeproperty;providingmanagementservicesforhotels;investingandsettingupindustries(specificprojectsareseparatelydeclared);domestictrade;engaginginimportandexportbusiness;E-commerceandinformationconstruction;andgraincirculationservice.Licensedbusinessitems:thefollowingprojectsshallbeoperatedonlywiththerelevantexaminationandapprovaldocumentsiftheyareinvolvedinobtainingapproval:informationservices(internetinformationserviceonly);generalfreight,professionaltransport(refrigeratedpreservation).Registercapitalis1,530,000,000.00yuan.Asoftheendofcurrentperiod,totalassetsreached6,478,738,133.90yuan,andnetassetsamountedto3,118,758,509.18yuan,andshareholders’equityattributabletoparentcompanywas2,899,618,332.75yuan;inthereportingperiod,theoperationrevenue,netprofitandnetprofitattributabletoshareholderofparentcompanywere2,152,349,469.27-yuan,119,260,334.18yuanand107,858,366.62yuanrespectively.ShenzhenHualianGrainandOilTradingCo.,Ltd.:Businessscope:generalbusinessitems:domestictrade(exceptforprojectsthatlaws,administrativeregulations,anddecisionsoftheStateCouncilrequireapprovalbeforeregistration);engaginginimportandexportbusiness(exceptforprojectsprohibitedbylaws,administrativeregulations,anddecisionoftheStateCouncil,restrictedprojectscanbeoperatedonlyafterobtainingpermission);onlinefeedsales;informationconsultation,self-ownedhousingleasing(excludingtalentagencyservicesandotherrestricteditems);internationalfreightforwarding,domesticfreightforwarding(canonlybeoperatedafterbeingapprovedbythetransportdepartmentiflaws,administrativeregulations,StateCouncildecisionrequiretheapprovaloftransportdepartment);Licensedbusinessitems:followingitemsshallbeoperatedonlywiththerelevantexaminationandapprovaldocumentsiftheyareinvolvedinobtainingapproval:purchaseandsaleofgrainandoil,onlinesalesofgrainandoil;informationservicebusiness(internetinformationservicebusinessonly).Registercapitalis300,000,000.00yuan.Asoftheendofcurrentperiod,totalassetsreached1,024,312,965.75yuan,andnetassetsamountedto412,667,180.49yuan,andshareholders’equityattributabletoparentcompanywas412,667,180.49yuan;inthereportingperiod,theoperationrevenue,netprofitandnetprofitattributabletoshareholderofparentcompanywere560,702,448.20yuan,negative38,164,694.60yuanandnegative38,164,694.60yuanrespectively.DongguanShenliangLogisticsCo.,Ltd.Businessscope:Generalbusinessitems:Containerandbulkcargostorageandothersupportingservices;Containerandbulkcargotransportation;Production:food(grainandoil),feedandfeedadditives;Grain

procurement;Wholesaleandretail:prepackagedfood(grainandoil),bulkfood(grainandoil),feedandfeedadditives;Portoperations,loadingandunloadingofsteelandgeneralcargoatports;Roadfreighttransportation;Watertransportation,watertransportationservices;Grainandoilstorage;InternetInformationServices;Technicalservicesforgrain,oil,andfeedqualityinspection;hotelmanagement;Industrialinvestment;Marketoperationmanagement;Supplychainmanagementservices;Internationalfreightforwarding,domesticfreightforwarding;Customsdeclarationagencyandinspectionagency;Propertymanagementandleasing;Importandexportofgoodsandtechnology.Projectsthatrequireapprovalaccordingtolawcanonlybeoperatedwiththeapprovalofrelevantdepartments.Itsregisteredcapitalis2,980,000.00yuan.Asoftheendofcurrentperiod,totalassetsreached2,698,286,947.68yuan,andnetassetsamountedto443,825,261.03yuan,andshareholders’equityattributabletoparentcompanywas443,825,261.03yuan;inthereportingperiod,theoperationrevenue,netprofitandnetprofitattributabletoshareholderofparentcompanywere478,490,737.32-yuan,23,345,351.32yuanand23,345,351.32yuanrespectively.

IX.StructuredvehiclecontrolledbytheCompany

□Applicable?NotapplicableX.Risksfacedbythecompanyandcorrespondingmeasures

1.RisksofpricefluctuationsinthepurchaseandsaleofgrainandoilTheRussia-Ukraineconflict,theMiddleEastwar,extremeweatherandotheruncertainexternalfactorshaveledtosignificantfluctuationsinthepurchaseandsalepricesofgrainandoilathomeandabroad,andshowedalargestructuraldifference.Theaforementionedrisksmayaffectthecompany'sprofitlevelandmayalsoleadtofluctuationsinthevalueofinventory.

Thecompanywillproactivelyrespondtotheriskoffluctuationsingrainandoilpricesbystrengtheningmarketforecasting,establishingstrategiccooperation,refiningpurchaseandsalesmanagement,enhancinginternalcoordination,andoptimizingproductstructureinatargetedmanner.

2.Foodsafetyrisks

“Qualitysafety”isthelifelineforthesustainabledevelopmentofenterprises,andfoodsafetyisaninviolableredline.Regulatoryauthoritieshavepromulgatedaseriesofregulationsandsystemsfromtoptobottomtargetingfoodsafetyhazards,corporateresponsibilities,productionmanagementcompliance,qualitysafetyinspections,andriskmonitoringandcontrol,aimingtoimplementtherequirementsof“thefourstrictestsupervisionoffoodsafety”.Inaccordancewithregulatoryrequirementsandthecompany'sactualmanagementconditions,thecompanyhasissuedtheMeasuresfortheManagementofFoodQualityandSafetyofSZCHandstrictlyimplementedit.Asthesuperiorsystemforthecompany'sfoodsafetymanagement,thissystemcoversthequalitymanagementofgrainandoilproductsaswellasnon-grainandoilfoodproducts,fullyclarifiesthejobresponsibilitiesforkeypositions,strengthenssupervisionoverkeylinks,andensuresthatfoodproductscomplywithqualitystandards,hygienestandardsandrelevantregulatoryrequirements.

3.RiskofintensifiedmarketcompetitionAsarepresentativeenterpriseofregionalgrain,oilandfoodbusiness,comparedwithcentralenterprisesandlargemultinationalgrain,oilandfoodenterprises,thecompanystillhasacertaingapinscaleandbrandawareness.Inthefuture,thecompetitioninthegrain,oilandfoodindustrywillbecomemoreintense,ifthecompanycannoteffectivelypromoteitsownbrandandbroadenitsmarketingchannels,itmayfacegreaterriskswhenmarketcompetitionintensifies.

Inresponsetopossiblemarketandbusinessrisks,ontheonehand,thecompanymakesoverallplansforannualprocurement,carefullyoptimizesprocurementchannels,andensuressufficientgrainsupplyandorderlysupply.Ontheotherhand,thecompanycontinuestostrengthencommunicationwithupstreamanddownstreamcustomersintheindustrychain,vigorouslyexpandssaleschannels,focusesoncustomerneeds,deepensbrandandservice,andenhancesthecompany'sbrandvalueandcompetitiveness.The

thirdistopromotebrandbuilding,strengthenbrandcommunicationandcooperationwithintheindustry,explorehigh-qualitybrandelementresources,createunifiedbrandapplicationstandards,andgraduallyestablishbrandadvantages.

XI.TheformulationandimplementationofthemarketcapitalizationmanagementsystemandvaluationenhancementplanWhetherthecompanyformulatedamarketcapitalizationmanagementsystemornot?

□Yes?NoWhetherthecompanydisclosedthevaluationenhancementplanornot?

□Yes?No

XII.ImplementationoftheActionPlanfor“DoubleImprovementofQualityandReturn”

WhetherthecompanydisclosedtheActionPlanfor“DoubleImprovementofQualityandReturn”ornot?

□Yes?No

SectionIVCorporateGovernance,EnvironmentalandSocial

ResponsibilitiesI.Changesindirectors,supervisorsandseniorexecutives

□Applicable?NotapplicableTherearenochangesindirectors,supervisorsandseniorexecutives.Referto2024annualreportfordetails.

II.ProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod

□Applicable?NotapplicableTheCompanyhasnoplanofcashdividenddistributed,nocashbonusandcapitalizingofcommonreserveseithercarriedout.

III.ImplementationoftheCompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives

□Applicable?NotapplicableThecompanydidn’timplementstockincentiveplan,employeestockownershipplanorotheremployeeincentives.

IV.EnvironmentinformationdisclosureArethelistedcompanyanditsmajorsubsidiariesincludedinthelistofenterprisesrequiredtodiscloseenvironmentinformationinaccordancewithlaws??Yes□No

V.Socialresponsibility

Inconsolidatingandexpandingtheachievementsofpovertyalleviationandensuringeffectivealignmentwithruralrevitalization,thecompanymadesolidprogress:first,dispatchedtwoaidcadrestotheChaonanDistrictofShantouandtotheChaozhouCommandoftheShenzhencounterpartassistanceprogram,continuingactiveparticipationinlocalruralrevitalizationefforts;second,activelycarriedouturbanandruralgreeninginitiativesthroughthemedPartyDayeventsandvolunteerservices,conductingfivegreeningactivitiesinthefirsthalfoftheyearanddonatingearmarkedfundstotheShenshanSpecialCooperationZonetosupportruralgreeningefforts;third,promotedconsumption-basedassistancebymobilizinggrassrootstradeunionstoactivelyprocureproductsfrompovertyalleviationinitiatives,therebyfosteringindustrialdevelopmentinformerlyimpoverishedareas.

SectionV.ImportantEventsI.CommitmentscompletedinPeriodandthosecompletedtilltheendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies?Applicable?NotapplicableTherearenocommitmentswhicharenotcompletedinPeriodandthosecompletedtilltheendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies.II.Non-operationalfundoccupationbycontrollingshareholdersandtheirrelatedparties

□Applicable?NotapplicableNonon-operationalfundoccupationbycontrollingshareholdersandtheirrelatedpartiesinperiod.

III.Externalguaranteeoutofregulations

□Applicable?NotapplicableNoexternalguaranteeoutoftheregulationsoccurredintheperiod.

IV.AppointmentanddismissalofCPAHasthesemi-annualfinancialreportbeenaudited?

□Yes□NoThecompany'ssemi-annualreporthasnotbeenaudited.

V.ExplanationfromtheBOD,theboardofsupervisorsandindependentdirectors(ifapplicable)for“QualifiedAuditOpinion”issuedbyCPA

□Applicable?Notapplicable

VI.ExplanationfromtheBODfor“QualifiedAuditOpinion”oflastperiod

□Applicable?NotapplicableVII.Bankruptcyreorganization

□Applicable?NotapplicableNobankruptcyreorganizationfortheCompanyinreportingperiod

VIII.LawsuitsMateriallitigationandarbitrationmatters

□Applicable?NotApplicableDuringthereportingperiod,thecompanyhasnomateriallitigationorarbitrationmatters.Otherlitigationmatters

□Applicable?NotApplicable

IX.Penaltyandrectification

□Applicable?NotapplicableNopenaltyandrectificationfortheCompanyinreportingperiod.

X.IntegrityoftheCompany,itscontrollingshareholderandactualcontroller

□Applicable?NotapplicableXI.Majorrelatedtransaction

1.Relatedtransactionwithroutineoperationconcerned

□Applicable?NotapplicableThecompanyhadnorelatedtransactionwithroutineoperationconcernedattheendofthereportingperiod.

2.Assetsorequityacquisition,andsalesofassetsandequity

□Applicable?Notapplicable

3.Relatedtransactionofjointexternalinvestment

□Applicable?NotapplicableNorelatedtransactionofjointexternalinvestmentoccurredintheperiod

4.Relatedcreditsandliabilities

□Applicable?NotapplicableNorelatedcreditsandliabilitiesoccurredinperiod

5.Contactwiththerelatedfinancecompanies

□Applicable?NotapplicableTherearenodeposits,loans,creditsorotherfinancialbusinessesbetweenthefinancecompanieswithassociatedrelationshipandrelatedparties

6.TransactionsbetweenthefinancecompanycontrolledbytheCompanyandrelatedparties

□Applicable?NotapplicableTherearenodeposits,loans,creditsorotherfinancialbusinessbetweenthefinancecompaniescontrolledbytheCompanyandrelatedparties

7.Othermajorrelatedtransaction

□Applicable?NotapplicableNoothermajorrelatedtransactioninthePeriod.

XII.Significantcontractandimplementation

1.Trusteeship,contractandleasing

1)Trusteeship

□Applicable?NotapplicableNotrusteeshipfortheCompanyinreportingperiod

2)Contract

□Applicable?NotapplicableNocontractfortheCompanyinreportingperiod

3)Leasing

□Applicable?NotapplicableNoleasinginthePeriod

2.Majorguarantee

?Applicable?NotapplicableThereisnomajorguaranteeinreportingperiod.

3.Entrustedfinancing

?Applicable?NotapplicableThereisnoentrustedfinancinginreportingperiod.

4.Othermaterialcontracts

□Applicable?NotapplicableNoothermaterialcontractsintheperiod.

XIII.Explanationonothersignificantevents?Applicable?NotapplicableTherearenoothersignificanteventstobeenplaned.

XIV.SignificanteventofsubsidiariesoftheCompany

?Applicable?Notapplicable

1.OnMarch25,2025,theCompanyconvenedthe13

thmeetingofthe11

th

sessionoftheBoardofDirectors,deliberatedandapprovedtheProposalonDeliberatingtheProjectofIndependentLegalEntityOperationforReservedGrainandOil

ManagementBusiness,andagreedtothecompany'sprojectofindependentlegalentityoperationforreservedgrainandoilmanagementbusiness.Fordetails,pleaserefertotheAnnouncementontheResolutionofthe13

th

Meetingofthe11

thsessionoftheBoardofDirectorsoftheCompanypublishedonSecuritiesTimes,ChinaSecuritiesJournal,ShanghaiSecuritiesNewsandCNINFOWebsite(www.cninfo.com.cn)onMarch26,2025.

2.OnApril28,2025,theCompanyconvenedthe14

th

Meetingofthe11

th

sessionoftheBoardofDirectors,deliberatedandapprovedtheProposalontheInvestmentDecisionofSteelStructureWorkshopNo.2fortheFoodProcessingProjectofDongguanShenliangLogisticsCo.,Ltd.,andagreedtothematteroftheinvestmentdecisionofsteelstructureworkshopNo.2forthefoodprocessingprojectofDongguanShenliangLogisticsCo.,Ltd.Fordetails,pleaserefertotheAnnouncementontheResolutionofthe14

th

Meetingofthe11

th

sessionoftheBoardofDirectorsoftheCompanypublishedonSecuritiesTimes,ChinaSecuritiesJournal,ShanghaiSecuritiesNewsandCNINFOWebsite(www.cninfo.com.cn)onApril29,2025.

3.OnJune17,2025,theCompanyconvenedthe16

th

Meetingofthe11

th

sessionoftheBoardofDirectors,deliberatedandapprovedtheProposalontheInvestmentDecisionoftheNew-QualityProductiveForcesTechnologyUpgradeProjectforBeverageTeaofShenbaoHuacheng,andagreedthatShenzhenShenbaoHuachengTechnologyCo.,Ltd.,thewholly-ownedsubsidiaryofthecompany,shallinvestinandconstructthenew-qualityproductiveforcestechnologyupgradeprojectforbeveragetea,withtotalinvestmentamountnotexceeding18.37millionyuan.Fordetails,pleaserefertotheAnnouncementontheResolutionofthe16

th

Meetingofthe11

th

sessionoftheBoardofDirectorsoftheCompanypublishedonSecuritiesTimes,ChinaSecuritiesJournal,ShanghaiSecuritiesNewsandCNINFOWebsite(www.cninfo.com.cn)onJune18,2025.

SectionVI.ChangesinSharesandParticularsabout

Shareholders

I.Changesinshares

1.Changesinshares

Unit:Share

Reasonsforchangesinshare

□Applicable?NotapplicableApprovalofchangesinshare

□Applicable?NotapplicableOwnershiptransferofchangesinshare

□Applicable?NotapplicableImplementationprogressofsharerepurchase

□Applicable?NotapplicableImplementationprogressofreducingrepurchasedsharesbyconcentratedauctionmethod

□Applicable?NotapplicableInfluenceofchangesinshareonbasicEPS,dilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersoftheCompanyinlatestyearandperiod

□Applicable?NotapplicableOtherinformationnecessarytobedisclosedintheviewpointoftheCompanyorthatrequiredtobedisclosedbysecuritiesregulators

□Applicable?Notapplicable

2.Changesinrestrictedshares

□Applicable?NotapplicableII.Securitiesissuanceandlisting

□Applicable?NotapplicableIII.Numberofshareholdersandparticularsaboutsharesholding

Unit:Share

Shareholderswithover5%ofshares,toptenshareholders,andtoptenshareholdersofun-restrictsharesparticipateinthelendingofsharesthroughrefinancing

□Applicable?NotapplicableThetop10shareholdersandthetop10shareholdersofun-restrictedtradableshareshavechangedcomparedtothepreviousperiodduetothereasonsoflending/returningofsharesthroughrefinancing

□Applicable?NotapplicableWhethertoptencommonstockshareholdersortoptencommonstockshareholdersofun-restrictshareshavebuy-backagreementdealinginreportingperiodornot?

□Yes?NoThetoptencommonstockshareholdersortoptencommonstockshareholdersofun-restrictsharesdidn’thavebuy-backagreementdealinginreportingperiod.IV.Changesinshareholdingsofdirectors,supervisorsandseniormanagement

□Applicable?NotApplicableDuringthereportingperiod,therewerenochangesintheshareholdingsofthecompany'sdirectors,supervisorsandseniormanagement.Fordetails,pleasereferto2024annualreport.

V.ChangesincontrollingshareholdersoractualcontrollersChangesincontrollingshareholdersduringthereportingperiod

□Applicable?NotApplicableTherewerenochangesinthecompany'scontrollingshareholdersduringthereportingperiod.Changesinactualcontrollersduringthereportingperiod

□Applicable?NotApplicableTherewerenochangesinthecompany'sactualcontrollersduringthereportingperiod.VI.Mattersrelatedtopreferredshares

□Applicable?NotApplicableThecompanyhadnopreferredsharesduringthereportingperiod.

SectionVII.CorporateBonds

□Applicable?Notapplicable

SectionVIII.FinancialReport

I.AuditReportWhetherthesemi-annualreportisauditedornot?

□Yes?NoThecompany'ssemi-annualfinancialreporthasnotbeenaudited.

II.FinancialstatementsStatementinFinancialNotesarecarriedinRMB/CNY.

1.Consolidatedbalancesheet

PreparedbySHENZHENCEREALSHOLDINGSCO.,LTD

June30,2025

InRMB

Legalrepresentative:WangZhikaiPersoninchargeofaccountingworks:LuYuhePersoninchargeofaccountinginstitute:LuChengjun

2.Balancesheetofparentcompany

InRMB

3.Consolidatedprofitstatement

InRMB

Asfortheenterprisecombinedunderthesamecontrol,thenetprofitachievedbythemergedpartybeforecombinationiszeroyuanandthenetprofitachievedbythemergedpartyinlastperiodiszeroyuan.Legalrepresentative:WangZhikaiPersoninchargeofaccountingworks:LuYuhePersoninchargeofaccountinginstitute:LuChengjun

4.Profitstatementofparentcompany

InRMB

5.Consolidatedcashflowstatement

6.Cashflowstatementofparentcompany

InRMB

7.Consolidatedstatementofchangesinowners’equityCurrentperiod

InRMB

Lastperiod

InRMB

8.Statementofchangesinowners’equityofparentcompanyCurrentperiod

InRMB

Lastperiod

InRMB

III.BasicinformationofcompanyShenzhenCerealsHoldingsCo.,Ltd.(formerlytheShenzhenShenbaoIndustrialCo.,Ltd.,hereinafterreferredtoas“SZCH”,“Company”or“theCompany”),formerlynamedShenzhenShenbaoCannedFoodCompany,obtainedapproval(Document(1991)No.978)fromShenzhenMunicipalPeople’sGovernmenttochangetothenameasShenzhenShenbaoIndustrialCo.,Ltd.onAugust1991.ApprovedbythePeople’sBankofChina(Document(1991)No.126),theCompanywaslistedonShenzhenStockExchange.TheCompanybelongstothegrain,oil,foodandbeverageindustry.ThecumulativeamountofsharesissuedbytheCompanywas1,152,535,254shareswithregisteredcapitalof1,152,535,254.00yuan.Registeredaddress:Shenzhen,GuangdongProvince;HQoftheCompany:8/F,TowerB,No.4Building,SoftwareIndustryBase,SouthDistrict,Science&TechnologyPark,XuefuRd.,YuehaiStreet,NanshanDistrict,Shenzhen.MainbusinessoftheCompany:wholesaleandretailbusiness,foodprocessingandmanufacturingbusiness,leasingandbusinessservicebusiness.Thewholesaleandretailbusinessmainlyinvolvesthesalesofgrainandoilproductssuchasrice,wheat,rice,corn,barley,sorghum,edibleoil,etc.,aswellasfinetea,beveragesandcondiments.Thefoodprocessingandmanufacturingbusinessmainlyincludestheprocessingofflour,rice,edibleoil,teaandnaturalplantextracts,beverages,condiments,etc.Theleasingandbusinessservicebusinessprovidesgrain,oilandfoodandbeverageimportandexporttrade,warehousingandstorage,logisticsanddistribution,qualitytesting,informationtechnologyservices,propertyleasingandmanagement,commercialoperationmanagementandotherservicesforallkindsofcustomersupstreamanddownstreamoftheindustrialchain.TheparententerpriseoftheCompanyisShenzhenFoodMaterialsGroupCo.,LtdandtheactualcontrolleroftheCompanyisShenzhenMunicipalPeople’sGovernmentState-ownedAssetsSupervision&AdministrationCommission.

IV.Basisofpreparationoffinancialstatements

1.BasisofpreparationThefinancialstatementarepreparedinlinewiththeAccountingStandardsforBusinessEnterprise-BasicStandardissuedbyMinistryofFinanceandspecificaccountingprincipleaswellastheapplicationguidancefortheaccountingprinciplesforenterprise,interpretationtotheaccountingprinciplesforenterpriseandotherrelatedrequirements(hereinafterreferredtoasAccountingStandardsforBusinessEnterprise),combiningtheInformationDisclosurePreparationRulesforCompanyPublicIssuingSecuritiesNo.15-GeneralRulesforFinancialReportoftheCSRC(Revisedin2023).Thesefinancialstatementsarepresentedonagoingconcernbasis.TheCompany'saccountingisbasedontheaccrualbasisofaccounting.Exceptforcertainfinancialinstruments,thesefinancialstatementsaremeasuredonahistoricalcostbasis.Ifanassetisimpaired,thecorrespondingimpairmentprovisionshallbeaccruedinaccordancewithrelevantregulations.

2.Goingconcern

Thefinancialstatementhasbeenpreparedonagoingconcernbasis.

V.Majoraccountingpolicyandaccountingestimate

Specificaccountingpoliciesandaccountingestimatetips:

Ourcompanyhasdeterminedfixedassetdepreciation,intangibleassetamortization,andrevenuerecognitionpoliciesbasedonitsownproductionandoperationcharacteristics.SpecificaccountingpoliciescanbefoundinNoteV.24,NoteV.29andNoteV.37.

1.StatementforobservationofAccountingStandardforBusinessEnterprise

ThefinancialstatementspreparedbytheCompanyareinaccordancetorequirementsofAccountingStandardforBusinessEnterpriseissuedbyMinistryofFinance,whichtrulyandcompletelyreflectthefinancialstatusoftheCompanyandparentcompanyonJune30,2025,aswellastheconsolidatedandparentcompany’soperationalresultsandcashflowfortheperiodfromJanuarytoJune

2025.

2.AccountingperiodCalendaryearistheaccountingperiodfortheCompany,thatisfallstotherangestartingfrom1Januaryto31December.

3.OperatingcycleOperatingcycleoftheCompanyis12months

4.Standardcurrency

TheCompanyanditssubsidiariestakeRMBasthestandardcurrencyforbookkeeping.Overseassubsidiariesselecttheiraccountingbasecurrencybasedonthecurrencyofthemaineconomicenvironmentinwhichtheyoperate.

5.Methodfordeterminingimportancecriteriaandselectioncriteria?Applicable□Notapplicable

6.Accountingtreatmentmethodsforbusinesscombinationsunderthesamecontrolandthosenotunder

thesamecontrol

(1)MergerofenterprisesunderthesamecontrolFormergeofbusinessunderthesamecontrol,theassetsandliabilitiesofthemergedpartyacquiredbythemergingpartyinthemergershallbemeasuredatthecarryingamountofthemergedpartyinthefinalcontrollingparty’sconsolidatedfinancialstatementsonthemergerdate.Thedifferencebetweenthebookvalueofthemergerconsideration(orthetotalfacevalueoftheissuedshares)andthebookvalueofthenetassetsobtainedinthemergershallbeadjustedtothecapitalreserve(sharepremium).Ifthecapitalreserve(sharepremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.Implementingenterprisemergersunderthesamecontrolthroughmultipletransactionsandstep-by-stepimplementationTheassetsandliabilitiesofthemergedpartyacquiredbythemergingpartyinthemergershallbemeasuredattheircarryingamountsintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthemergerdate;Thedifferencebetweenthebookvalueoftheinvestmentsheldbeforethemergerandthebookvalueofthenewlypaidconsiderationonthemergerdate,andthebookvalueofthenetassetsobtainedduringthemerger,isadjustedtothecapitalreserve(sharepremium).Ifthecapitalreserveisinsufficienttooffset,theretainedearningsareadjusted.Thelong-termequityinvestmentheldbythemergingpartybeforeobtainingcontrolofthemergedpartyshallbeoffsetagainstthebeginningretainedearningsorcurrentperiodgains/lossesofthecomparativefinancialperiod,respectively,incasetherelevantgains/losses,othercomprehensiveincomeandotherchangesinshareholders’equityhavebeenrecognizedwithintheperiodfromthelatterbetweenthedateofacquiringtheoriginalequityandthedatewhenthemergingpartyandthemergedpartyareunderthesameultimatecontrolasthemergingpartytothemergingdate.

(2)MergerofenterprisesnotunderthesamecontrolFormergeofenterprisesnotunderthesamecontrol,themergercostisthefairvalueoftheassetspaid,liabilitiesincurredorassumed,andequitysecuritiesissuedontheacquisitiondatetoobtaincontrolovertheacquiredparty.Onthepurchasedate,theassets,liabilities,andcontingentliabilitiesoftheacquiredpartyarerecognizedatfairvalue.Thedifferencebetweenthemergercostandthefairvalueshareofidentifiablenetassetsobtainedfromtheacquiredpartyinthemergershallberecognizedasgoodwillandsubsequentlymeasuredatcostminusaccumulatedimpairmentprovisions;Incasethemergecostislowerthanthefairvalueofidentifiablenetassetsobtainedfromtheacquiredpartyinthemerge,thedifferenceshallberecognizedinthegains/lossesofcurrentperiodafterreview.

ImplementingbusinessmergersunderdifferentcontrolthroughmultipletransactionsinstagesThemergercostisthesumoftheconsiderationpaidonthepurchasedateandthefairvalueoftheequityoftheacquiredpartyheldpriortothepurchasedate.Fortheequityofthepurchasedpartyalreadyheldbeforethepurchasedate,itshallberemeasuredatitsfairvalueonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueshallberecognizedinthecurrentinvestmentincome;Thechangesinothercomprehensiveincomeandothershareholders’equityinvolvedwiththeequityofthepurchasedpartybeforepurchasedateshallbecarriedforwardtothecurrentincomeofthepurchasedate,notincludingothercomprehensiveincomearisingfromchangesinnetliabilitiesornetassetsiftheinvestedentityremeasuresthedefinedbenefitplan,aswellasothercomprehensiveincomerelatedtonon-tradableequityinstrumentinvestmentsthatwereoriginallydesignatedtobemeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome.

(3)TreatmentoftransactioncostsinenterprisemergerTheintermediaryfeesforauditing,legalservices,evaluationandconsulting,aswellasotherrelatedmanagementexpensesincurredforbusinessmergers,arerecognizedinthecurrentperiod’sgains/losseswhenincurred.Thetransactioncostsofequityordebtsecuritiesissuedasconsiderationforthemergershallbeincludedintheinitialrecognitionamountofequityordebtsecurities.

7.Criteriaforjudgingcontrolandpreparationmethodsforconsolidatedfinancialstatements

(1)CriteriaforjudgingcontrolTheconsolidationscopeoftheconsolidatedfinancialstatementsisdeterminedbasedoncontrol.Controlreferstothecompanyhavingthepowerovertheinvestedentity,enjoyingvariablereturnsthroughparticipatinginrelatedactivitiesoftheinvestedentity,andhavingtheabilitytousethepowerovertheinvestedentitytoinfluenceitsreturnamount.Whenchangesinrelevantfactsandcircumstancesresultinchangesintherelevantelementsinvolvedinthedefinitionofcontrol,thecompanywillconductreassessment.Whendeterminingwhethertoincludeastructuredentityinthescopeofconsolidation,thecompanytakesintoaccountallfactsandcircumstances,includingevaluatingthepurposeanddesignoftheestablishmentofthestructuredentity,identifyingthetypesofvariablereturns,andevaluatingwhethertocontrolthestructuredentitybyparticipatinginitsrelatedactivitiesandassumingsomeorallofthevariabilityofreturns.

(2)MethodofpreparingconsolidatedfinancialstatementsTheconsolidatedfinancialstatementsarebasedonthefinancialstatementsoftheCompanyanditssubsidiaries,andarepreparedbytheCompanybasedonotherrelevantinformation.Whenpreparingconsolidatedfinancialstatements,theaccountingpoliciesandperiodrequirementsoftheCompanyanditssubsidiariesareconsistent,andsignificanttransactionsandbalancesbetweencompaniesareoffset.Duringthereportingperiod,subsidiariesandbusinessesaddedduetomergeofenterprisesunderthesamecontrolshallbedeemedtobeincludedinthescopeofthecompany’sconsolidationfromthedateofbeingunderthesameultimatecontrol.Theoperatingresultsandcashflowsfromthedateofbeingunderthesameultimatecontrolshallbeseparatelyincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement.Duringthereportingperiod,theincome,expenses,andprofitsofsubsidiariesandbusinessesaddedduetomergeofenterprisesnotunderthesamecontrolfromthepurchasedatetotheendofthereportingperiodshallbeincludedintheconsolidatedincomestatement,andtheircashflowsshallbeincludedintheconsolidatedcashflowstatement.Theportionoftheshareholder’sequityofthesubsidiarythatdoesnotbelongtothecompanyshallbeseparatelylistedasminorityshareholder’sequityintheconsolidatedbalancesheetundertheshareholder'sequityitem;Thesharesbelongingtominorityinterestsinthecurrentnetgainsandlossesofsubsidiariesarepresentedasminorityinterestsunderthenetprofitintheconsolidatedincomestatement.Incasethelossesassumedbytheminorityshareholdersinthesubsidiaryexceedtheirshareintheinitialowner'sequityof

thesubsidiary,thebalanceshallstilloffsetagainstthedecreaseintheminorityshareholder’sequity.

(3)PurchaseofminorityshareholderequityinsubsidiarycompaniesThedifferencebetweenthecostofnewlyacquiredlong-termequityinvestmentsduetothepurchaseofminorityequityandthenetassetthatshouldbecontinuouslycalculatedfromthedateofpurchaseormergerbasedonthenewshareholdingratio,aswellasthedifferencebetweenthedisposalpriceobtainedfrompartialdisposalofequityinvestmentsinsubsidiarieswithoutlosingcontrolandthenetassetthatshouldbecontinuouslycalculatedfromthedateofpurchaseormergercorrespondingtothedisposaloflong-termequityinvestments,shallbeadjustedtothecapitalreserve(sharepremium)intheconsolidatedbalancesheet.Ifthecapitalreserveisinsufficienttooffset,retainedearningsshallbeadjusted.

(4)TreatmentoflossofcontroloversubsidiariesIfcontrolovertheoriginalsubsidiaryislostduetothedisposalofpartialequityinvestmentsorotherreasons,theremainingequityshallberemeasuredatfairvalueonthedateoflossofcontrol;Thedifferencebetweenthesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequity,minusthesumofthebookvalueofnetassetbookoftheoriginalsubsidiarythatshouldhavebeencontinuouslycalculatedfromthepurchasedatebasedontheoriginalshareholdingratioandthegoodwill,isrecognizedintheinvestmentincomefortheperiodwhencontrolislost.Othercomprehensiveincomerelatedtoequityinvestmentsintheoriginalsubsidiaryshouldbeaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheoriginalsubsidiarywhencontrolislost.Otherchangesinowner’sequityrelatedtotheoriginalsubsidiaryandmeasuredatequitymethodshouldbetransferredtothecurrentperiod’sgainsandlosseswhencontrolislost.

8.Classificationofjointventurearrangementsandaccountingtreatmentmethodsforjointoperations

Jointventurearrangementreferstoanarrangementjointlycontrolledbytwoormoreparticipatingparties.Thejointventurearrangementsofthecompanyaredividedintojointoperationsandjointventures.

(1)JointoperationInjointoperation,thecompanyenjoystheassetsrelatedtothearrangementandassumestheliabilitiesrelatedtothearrangement.Thecompanyconfirmsthefollowingitemsrelatedtotheshareofinterestsinjointoperationsandconductsaccountingtreatmentinaccordancewiththerelevantaccountingstandardsforenterprises:

A.Recognizeindividuallyheldassetsandjointlyheldassetsbasedontheirrespectiveshares;B.Recognizeindividualliabilitiesandjointlyassumeliabilitiesbasedontheirrespectiveshares;C.Recognizetheincomegeneratedfromthesaleofitsshareofjointoperatingoutput;D.Recognizetherevenuegeneratedfromthesaleofoutputinjointoperationsbasedontheirshare;E.Recognizetheexpensesincurredseparately,andtheexpensesincurredinjointoperationsbasedontheirrespectiveshares.

(2)JointventureInajointventure,thecompanyonlyhastherighttothenetassetsarrangedbyit.Thecompanyaccountsforinvestmentsinjointventuresinaccordancewiththeprovisionsofequitymethodaccountingforlong-termequityinvestments.

9.RecognitionstandardsforcashandcashequivalentsCashreferstothecashonhandandcashequivalentsofdepositsthatcanbeusedforpaymentatanytime.CashequivalentreferstotheinvestmentheldbytheCompanywithshortmaturityandstrongliquiditythatareeasytobeconvertedintoknownamountswithlittleriskofchangeincashvalue.

10.Foreigncurrencytransactionsandforeigncurrencystatementtranslation

(1)ForeigncurrencytransactionsThecompanyconductsforeigncurrencybusinessandconvertstheamountoftheaccountingcurrencyattheexchangeratewhichisdeterminedinasystematicandreasonablemannerandisapproximatelythespotexchangerateonthedateoftransaction.Onthebalancesheetdate,foreigncurrencymonetaryitemsareconvertedwiththespotexchangerateonthebalancesheetdate.Theexchangedifferencearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandtheexchangerateforinitialrecognitionoronthepreviousbalancesheetdateshallberecognizedinthecurrentperiod'sgainsandlosses;Forforeigncurrencynon-monetaryitemsmeasuredathistoricalcost,thespotexchangerateonthetransactiondateshallstillbeusedfortranslation;Forforeigncurrencynon-monetaryitemsmeasuredatfairvalue,thespotexchangerateonthedateoffairvaluedeterminationisadopted.Thedifferencebetweentheconvertedamountintheaccountingcurrencyandtheoriginalamountintheaccountingcurrencyisrecognizedinthegainsandlossesofcurrentperiodorothercomprehensiveincomebasedonthenatureofthenon-monetaryitem.

(2)TranslationofforeigncurrencyfinancialstatementsAtthebalancesheetdate,whentranslatingtheforeigncurrencyfinancialstatementsofoverseassubsidiaries,fortheassetsandliabilitiesitemsinthebalancesheet,thespotexchangerateonthebalancesheetdateisusedfortranslation.Fortheitemsofshareholders’equity,exceptfor“retainedprofits”,otheritemsaretranslatedatthespotexchangerateonthedateofoccurrence.Fortherevenueandexpenseitemsintheincomestatement,theexchangeratedeterminedbyareasonablemethodofthesystemandapproximatetothespotexchangerateonthetransactiondatewillbeavailablefortranslation.Allitemsinthecashflowstatementaretranslatedattheexchangeratedeterminedbyareasonablemethodofthesystemandapproximatetothespotexchangerateonthedateofcashflowoccurrence.Theimpactamountofexchangeratefluctuationsoncashistreatedasanadjustmentitem,andisbookedintothe“ImpactofExchangeRateFluctuationsonCashandCashEquivalents”whichisseparatelypresentedinthecashflowstatement.Thedifferencearisingfromthetranslationoffinancialstatementsispresentedin“OtherComprehensiveIncome”undertheshareholders’equityitemsinthebalancesheet.Incaseofdisposingofanoverseasoperationandlosingcontrolrights,thetranslationdifferenceoftheforeigncurrencystatementsrelatedtothisoverseasoperation,whichispresentedundertheitemsofowners'equityinthebalancesheet,shallbetransferredinfullorinproportiontothegains/lossesoftheperiodofthedisposalofsuchoverseaoperation.

11.Financialinstrument

Financialinstrumentisthecontractthatformsthefinancialassesforanenterpriseandformsthefinancialliabilityorequityinstrumentforotherunits.

(1)Recognitionandde-recognitionoffinancialinstruments

Thecompanyrecognizesthefinancialassetorliabilitywhenitbecomesapartytoafinancialinstrumentcontract.Financialassetsthatmeetoneofthefollowingconditionsshallbederecognized:

①Thecontractualrighttoreceivecashflowsfromthefinancialassetisterminated;

②Thefinancialassethasbeentransferredandmeetstheconditionsforderecognizingthetransferoffinancialassetsasfollows.Incasethecurrentobligationsofafinancialliabilityhavebeenfullyorpartiallyrelieved,thefinancialliabilityoraportionthereofshallbederecognized.Incasethecompany(debtor)signsanagreementwithcreditorstoreplaceexistingfinancialliabilitiesbyassumingnewfinancialliabilities,andthecontractualtermsofthenewfinancialliabilitiesaresubstantiallydifferentfromthoseoftheexistingfinancialliabilities,theexistingfinancialliabilitiesshallbederecognizedandthenewfinancialliabilitiesshallberecognizedsimultaneously.Thefinancialassetsboughtorsoldinconventionalmannersshallberecognizedorderecognizedonthetradingday.

(2)ClassificationandinitialmeasurementoffinancialassetsAttheinitialrecognition,accordingtothebusinessmodelofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets,theCompanyclassifiesthefinancialassetsintothefinancialassetsmeasuredatamortizedcost,thefinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,andthefinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitorloss.Financialassetsaremeasuredatfairvalueforinitialrecognition.Forfinancialassetsmeasuredatfairvaluewithchangesrecognizedinthegainsandlossesofcurrentperiod,therelevanttransactioncostsaredirectlyrecognizedinthegainsandlossesofcurrentperiod;Forothercategoriesoffinancialassets,relevanttransactioncostsareincludedintheinitialrecognitionamount.Theaccountsreceivablearisingfromthesaleofproductsorprovisionofservices,whichdonotincludeorconsidersignificantfinancingcomponents,shallberecognizedattheexpectedamountofconsiderationthatthecompanyisentitledtoreceiveforinitialrecognition.FinancialassetsmeasuredatamortizedcostTheCompanyclassifiesthefinancialassetsthatmeetthefollowingconditionsandarenotdesignatedasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitorlossasfinancialassetsmeasuredatamortizedcost:

?Thegroup’sbusinessmodelformanagingthefinancialassetsistocollectcontractualcashflows;and?Thecontractualtermsofthefinancialassetsstipulatethatcashflowgeneratedonaspecificdatewillbeonlyusedtopayfortheprincipalandinterestbasedontheoutstandingprincipalamount.Afterinitialrecognition,suchfinancialassetsaremeasuredatamortizedcostwiththeeffectiveinterestmethod.Gainsorlossesarisingfromfinancialassetswhicharemeasuredatamortizedcostandarenotacomponentofanyhedgingrelationshipareincludedincurrentprofitorlosswhenbeingterminatedforrecognition,amortizedbyeffectiveinterestmethod,orimpaired.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeTheCompanyclassifiesthefinancialassetsthatmeetthefollowingconditionsandarenotdesignatedasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitorlossasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome:

?TheGroup'sbusinessmodelformanagingthefinancialassetsistargetedatboththecollectionofcontractualcashflowsand

thesaleoffinancialassets;and?Thecontractualtermsofthefinancialassetstipulatethatthecashflowgeneratedonaspecificdateisonlyusedtopayforthe

principalandtheinterestbasedontheoutstandingprincipalamount.Afterinitialrecognition,suchfinancialassetsaresubsequentlymeasuredatfairvalue.Interests,impairmentlossesorgainsand

exchangegainsandlossescalculatedwiththeeffectiveinterestmethodareincludedinprofitorlossfortheperiod,andothergainsorlossesareincludedinothercomprehensiveincome.Atthetimeofderecognition,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomeshallbecarriedforwardfromothercomprehensiveincometocurrentprofitorloss.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitorlossExceptfortheabovefinancialassetsmeasuredatamortizedcostandmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,theCompanyclassifiesallotherfinancialassetsasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitorloss.Intheinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatch,theCompanyirreversiblydesignatespartofthefinancialassetsthatshouldbemeasuredatamortizedcostormeasuredatfairvalueandwhosechangesareincludedintheothercomprehensiveincomeasthefinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitorloss.Aftertheinitialrecognition,suchfinancialassetsaresubsequentlymeasuredatfairvalue,andthegainsorlosses(includinginterestsanddividendincome)areincludedinthecurrentprofitandloss,unlessthefinancialassetsarepartofthehedgingrelationship.Thebusinessmodelofmanagingfinancialassetsreferstohowthecompanymanagesfinancialassetstogeneratecashflow.Thebusinessmodeldetermineswhetherthesourceofcashflowforthefinancialassetsmanagedbythecompanyistoreceivecontractcashflow,sellfinancialassets,oracombinationofboth.thecompanydeterminesthebusinessmodelformanagingfinancialassetsbasedonobjectivefactsandspecificbusinessobjectivesdeterminedbykeymanagementpersonnel.Thecompanyevaluatesthecontractualcashflowcharacteristicsoffinancialassetstodeterminewhetherthecontractualcashflowgeneratedbytherelevantfinancialassetsonaspecificdateisonlyforthepaymentofprincipalandinterestbasedontheoutstandingprincipalamount.Principalreferstothefairvalueoffinancialassetsatinitialrecognition;Interestincludesconsiderationforthetimevalueofmoney,creditriskassociatedwithoutstandingprincipalamountsforaspecificperiod,andotherbasiclendingrisks,costs,andprofits.Inaddition,thecompanyevaluatescontracttermsthatmaycausechangesinthetimedistributionoramountofcashflowsinfinancialassetcontractstodeterminewhethertheymeettherequirementsoftheaforementionedcontractcashflowcharacteristics.Onlywhenthecompanychangesitsbusinessmodelformanagingfinancialassets,allaffectedrelatedfinancialassetsshallbereclassifiedonthefirstdayofthefirstreportingperiodafterthechangeinbusinessmodel.Otherwise,financialassetsshallnotbereclassifiedafterinitialrecognition.

(3)ClassificationandmeasurementoffinancialliabilitiesThefinancialliabilitiesofthecompanyareclassifiedatinitialrecognitionasfinancialliabilitiesmeasuredatfairvaluethroughgainsandlossesofcurrentperiod,financialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvalueandwhosechangesarerecognizedinthegainsandlossesofcurrentperiod,therelevanttransactioncostsareincludedintheirinitialrecognitionamount.FinancialliabilitiesmeasuredatfairvaluethroughgainsandlossesFinancialliabilitiesmeasuredatfairvaluethroughgainsandlossesincludetradingfinancialliabilitiesandfinancialliabilitiesdesignatedatinitialrecognitionasmeasuredatfairvaluethroughprofitorloss.Forsuchfinancialliabilities,subsequentmeasurementsaremadeatfairvalue,andgainsorlossesresultingfromchangesinfairvalue,aswellasdividendsandinterestexpensesrelatedtosuchfinancialliabilities,arerecognizedinthegainsandlossesofcurrentperiod.FinancialliabilitiesmeasuredatamortizedcostOtherfinancialliabilitiesaremeasuredwitheffectiveinterestratemethodatamortizedcost,andanygainsorlossesarisingfromderecognitionoramortizationarerecognizedinthegainsandlossesofcurrentperiod.

ThedistinctionbetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:

①Thecontractualobligationtodelivercashorotherfinancialassetstootherparties.

②Contractualobligationstoexchangefinancialassetsorliabilitieswithotherpartiesunderpotentialadverseconditions.③Non-derivativeinstrumentcontractsthatrequireorcanbesettledwiththecompany’sownequityinstrumentsinthefuture,andthecompanywilldeliveravariablenumberofitsownequityinstrumentsaccordingtothiscontract.④Derivativeinstrumentcontractsthatrequireorcanbesettledwiththecompany’sownequityinstrumentsinthefuture,exceptforderivativeinstrumentcontractswhereafixedamountofself-equityinstrumentsisexchangedforafixedamountofcashorotherfinancialassets.Equityinstrumentsrefertocontractsthatproveownershipoftheremainingequityinassetsofacertainenterpriseafterdeductingallliabilities.Ifthecompanycannotunconditionallyavoidfulfillingacontractualobligationbydeliveringcashorotherfinancialassets,suchcontractualobligationmeetsthedefinitionoffinancialliability.Ifafinancialinstrumentneedstobesettledorcanbesettledwiththecompany’sownequityinstruments,itisnecessarytoconsiderwhetherthecompany’sownequityinstrumentsusedtosettletheinstrumentareusedassubstitutesforcashorotherfinancialassets,ortoenabletheholderoftheinstrumenttoenjoytheremainingequityintheassetsafterdeductingallliabilitiesfromtheissuer.Ifitistheformer,theinstrumentisthefinancialliabilityofthecompany;Ifitisthelatter,theinstrumentistheequityinstrumentofthecompany.

(4)DerivativefinancialinstrumentsandembeddedderivativeinstrumentsThederivativefinancialinstrumentsofthecompanyareinitiallymeasuredatfairvalueonthedateofsigningthederivativetransactioncontract,andaresubsequentlymeasuredattheirfairvalue.Thederivativefinancialinstrumentswithapositivefairvaluearerecognizedasanasset,whilethosewithanegativefairvaluearerecognizedasaliability.Anygainsorlossesarisingfromchangesinfairvaluethatdonotcomplywithhedgeaccountingregulationsaredirectlyrecognizedinthegainsandlossesofcurrentperiod.Formixedinstrumentscontainingembeddedderivativeinstruments,incasethemaincontractisafinancialasset,therelevantprovisionsforfinancialassetclassificationshallapplytothemixedinstrumentsasawhole.Ifthemaincontractisnotafinancialasset,andthemixedinstrumentisnotmeasuredatfairvaluethroughgainsandlosses,theembeddedderivativeinstrumentisnotcloselyrelatedtothemaincontractintermsofeconomiccharacteristicsandrisks,andhasthesameconditionsastheembeddedderivativeinstrument,andtheseparateinstrumentmeetsthedefinitionofaderivativeinstrument,theembeddedderivativeinstrumentisseparatedfromthemixedinstrumentandtreatedasaseparatederivativefinancialinstrument.Ifitisnotpossibletoseparatelymeasureembeddedderivativeinstrumentsatthetimeofacquisitionorsubsequentbalancesheetdates,themixedinstrumentasawholeshallbedesignatedasafinancialassetorliabilitymeasuredatfairvaluewithitschangesrecognizedinthegainsandlossesofcurrentperiod.

(5)ImpairmentoffinancialassetsBasedonexpectedcreditlosses,thecompanyconductsimpairmentaccountingtreatmentandrecognizeslossprovisionsforthefollowingitems:

?Financialassetsmeasuredatamortizedcost;

?Accountsreceivableanddebtinstrumentinvestmentsmeasuredatfairvaluewithchangesrecognizedinother

comprehensiveincome;

?ContractassetsdefinedinEnterpriseAccountingStandardNo.14-Revenue;?Leasereceivables;?Financialguaranteecontracts(excludingthosemeasuredatfairvaluethroughprofitorloss,transferoffinancialassetsthatdonotmeettheterminationrecognitionconditions,orcontinuedinvolvementinthetransferredfinancialassets).MeasurementofexpectedcreditlossesExpectedcreditlossreferstotheweightedaverageofcreditlossesoffinancialinstrumentsweightedbytheriskofdefault.Creditlossreferstothepresentvalueofallcashshortages,whichisthedifferencebetweenallcontractualcashflowsreceivablediscountedattheoriginaleffectiveinterestrateandexpectedcashflowsreceivedbythecompany.Consideringreasonableandevidence-basedinformationregardingpastevents,currentconditions,andpredictionsoffutureeconomicconditions,withtheriskofdefaultastheweight,thecompanycalculatestheprobabilityweightedamountofthepresentvalueofthedifferencebetweenthecashflowsreceivableunderthecontractandtheexpectedcashflowstobereceived,andrecognizetheexpectedcreditloss.Thecompanymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstagesseparately.Ifthecreditriskoffinancialinstrumentshasnotsignificantlyincreasedsinceinitialrecognition,theyareinthefirststage,andthecompanymeasuresthelossprovisionbasedontheexpectedcreditlosseswithinthenext12months;Ifthecreditriskofafinancialinstrumenthassignificantlyincreasedsinceinitialrecognitionbuthasnotyetexperiencedcreditimpairment,itisinthesecondstageandthecompanymeasurestheprovisionforlossesbasedontheexpectedcreditlossesoftheinstrumentoveritsentireduration;Ifafinancialinstrumenthasexperiencedcreditimpairmentsinceitsinitialrecognition,itisinthethirdstage,andthecompanymeasurestheprovisionforlossesbasedontheexpectedcreditlossesoftheinstrumentoveritsentireduration.Forfinancialinstrumentswithlowercreditriskonthebalancesheetdate,thecompanyassumesthattheircreditriskhasnotsignificantlyincreasedsinceinitialrecognitionandmeasureslossprovisionsbasedonexpectedcreditlossesoverthenext12months.Theexpectedcreditlossfortheentireexpecteddurationofafinancialinstrumentreferstotheexpectedcreditlosscausedbyallpossibledefaulteventsthatmayoccurthroughouttheexpecteddurationofthefinancialinstrument.Theexpectedcreditlosswithinthenext12monthsimpliestheexpectedcreditlossthatmayoccurduetoadefaulteventofafinancialinstrumentwithinthenext12monthsafterthebalancesheetdata(withintheexpecteddurationincasetheexpectedmaturityofthefinancialinstrumentislessthan12months),whichisapartoftheexpectedcreditlossfortheentireduration).Whenmeasuringexpectedcreditlosses,thelongesttermthatthecompanyneedstoconsideristhelongestcontracttermthattheenterprisefacescreditrisk(includingconsideringrenewaloptions).Forfinancialinstrumentsinthefirstandsecondstages,aswellasthosewithlowercreditrisk,thecompanycalculatesinterestincomebasedontheirbookbalancewithoutdeductingimpairmentprovisionsandactualinterestrate.Forfinancialinstrumentsinthethirdstage,interestincomeiscalculatedbasedontheirbookbalanceminustheamortizedcostofimpairmentprovisionsandtheactualinterestrate.Forreceivablessuchasnotesreceivable,accountsreceivable,andotherreceivables,ifthecreditriskcharacteristicsofacertaincustomeraresignificantlydifferentfromthoseofothercustomersintheportfolio,orifthereisasignificantchangeinthecreditriskcharacteristicsofthatcustomer,thecompanywillmakeindividualseparatebaddebtreserveforthatreceivable.Exceptforaccountsreceivablewithindividualbaddebtreserve,thecompanyclassifiesaccountsreceivableintoportfoliosbasedoncreditrisk

characteristicsandcalculatesbaddebtreserveonthebasisofportfolio.Notesreceivable,accountsreceivableandcontractassetsFornotesreceivableandaccountsreceivable,regardlessofwhethertherearesignificantfinancingcomponents,thecompanyalwaysmeasuresitslossprovisionatanamountequivalenttotheexpectedcreditlossfortheentireduration.Whenitisunabletoassesstheexpectedcreditlossesofasinglefinancialassetatareasonablecost,thecompanycategoriesaccountsreceivableandnotesreceivableintoportfoliosbasedoncreditriskcharacteristics,calculatesexpectedcreditlossesonthebasisofportfolio,anddeterminesthebasisforportfolioandthemethodformeasuringexpectedcreditlossesasfollows:

A.NotesreceivableAccountsreceivableportfolio1:BankacceptancebillAccountsreceivableportfolio2:CommercialacceptancebillB.AccountsreceivableAccountsreceivableportfolio1:SalesreceivablesportfolioAccountsreceivableportfolio2:SpecificobjectportfolioForaccountsreceivableandcontractassetsclassifiedintoportfolio,thecompany,basedonhistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,calculatetheexpectedcreditlossbydefaultriskexposureandtheexpectedcreditlossratefortheentiredurationForaccountsreceivableclassifiedintoportfolio,thecompany,basedonhistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,prepareacomparisontablebetweentheagingofaccountsreceivableandtheexpectedcreditlossratefortheentireduration,andcalculatetheexpectedcreditloss.Theagingoftheaccountsreceivableiscalculatedsincetherecognitiondateofaccountsreceivable.OtherreceivablesThecompanycategoriesotherreceivablesintoseveralcombinationsbasedoncreditriskcharacteristics,calculatesexpectedcreditlossesonthebasisofportfolio,anddeterminesthebasisforportfolioasfollows:

Otheraccountsreceivableportfolio1:ExpectedportfolioofcreditriskcharacteristicsOtheraccountsreceivableportfolio2:SpecificobjectportfolioForotherreceivablesclassifiedintoportfolio,thecompany,basedonhistoricalcreditlossexperience,calculatetheexpectedcreditlossbydefaultriskexposureandtheexpectedcreditlossrateoverthenext12monthsortheentireduration.Theagingoftheaccountsreceivableiscalculatedsincetherecognitiondateofotheraccountsreceivable.Creditors'investmentandothercreditors'investmentsForcreditors'investmentsandothercreditors'investments,thecompanycalculatesexpectedcreditlossesbasedonthenatureoftheinvestment,varioustypesofcounterpartiesandriskexposure,defaultriskexposure,andexpectedcreditlossrateforthenext12monthsortheentireduration.AssessmentofsignificantincreaseincreditriskThecompanycomparestheriskofdefaultoffinancialinstrumentsonthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondatetodeterminetherelativechangeindefaultriskduringtheexpecteddurationoffinancialinstruments,inordertoevaluatewhetherthecreditriskoffinancialinstrumentshassignificantlyincreasedsinceinitialrecognition.

Whendeterminingwhethercreditriskhassignificantlyincreasedsinceinitialrecognition,thecompanyconsidersreasonableandevidence-basedinformation,includingforward-lookinginformation,thatcanbeobtainedwithoutunnecessaryadditionalcostsorefforts.Theinformationconsideredbythecompanyincludes:

?Thedebtorfailstopaytheprincipalandinterestontheduedateofthecontract;?Seriousdeteriorationofexternalorinternalcreditratings(ifany)offinancialinstrumentsthathaveoccurredorareexpectedtooccur;?Seriousdeteriorationofthedebtor'soperatingresultsthathasoccurredorisexpectedtooccur;?Existingoranticipatedchangesintechnology,market,economy,orlegalenvironmentthatwillhaveasignificantadverse

impactonthedebtor'sabilitytorepaythecompany.Basedonthenatureoffinancialinstruments,thecompanyevaluateswhethercreditrisksignificantlyincreasesbasedonindividualfinancialinstrumentsorcombinationsoffinancialinstruments.Whenperformingassessmentbasedonfinancialinstrumentsportfolio,thecompanycanclassifyfinancialinstrumentsbasedoncommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskratings.Iftheoverdueperiodexceeds30days,thecompanydeterminesthatthecreditriskofthefinancialinstrumenthassignificantlyincreased.FinancialassetsthathaveexperiencedcreditimpairmentThecompanyassessesonthebalancesheetdatewhetherfinancialassetsmeasuredatamortizedcostandcreditors'investmentsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincomehaveexperiencedcreditimpairment.Whenoneormoreeventsthathaveanadverseimpactontheexpectedfuturecashflowsofafinancialassetoccur,thefinancialassetbecomesafinancialassetthathasexperiencedcreditimpairment.Evidenceofcreditimpairmentoffinancialassetsincludesthefollowingobservableinformation:

?Theissuerordebtorencounterssignificantfinancialdifficulties;?Thedebtorviolatesthecontract,suchaspayinginterestorprincipalindefaultoroverdue;?Duetoeconomicorcontractualconsiderationsrelatedtothefinancialdifficultiesofthedebtor,thecompanywillnotmake

anyconcessionstothedebtorunderanyothercircumstances;

?Thedebtorislikelytogobankruptorundergootherfinancialrestructuring;?Thefinancialdifficultiesoftheissuerordebtorhaveledtothedisappearanceoftheactivemarketforthefinancialasset.ReportingofprovisionsforexpectedcreditlossesToreflectthechangesincreditriskoffinancialinstrumentssinceinitialrecognition,thecompanyremeasuresexpectedcreditlossesoneachbalancesheetdate.Theconsequentincreaseorreversaloflossprovisionsshouldberecognizedasimpairmentlossesorgainsinthegainsandlossesofcurrentperiod.Forfinancialassetsmeasuredatamortizedcost,theprovisionforlossesshalloffsetthebookingamountofthefinancialassetasstatedinthebalancesheet;Forcreditors'investmentsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome,thelossprovisionshallberecognizedinothercomprehensiveincomeanddoesnotoffsetthebookingamountofthefinancialasset.Write-off

Ifthecompanynolongerreasonablyexpectsthecashflowofthefinancialassetcontracttobefullyorpartiallyrecovered,thebookamountofthefinancialassetshallbedirectlywrittendown.Thiswritesdownconstitutesthederecognitionofrelatedfinancialassets.Thissituationusuallyoccurswhenthecompanydeterminesthatthedebtordoesnothaveassetsorsourcesofincometogeneratesufficientcashflowtorepaytheamounttobewrittendown.However,accordingtothecompany’sproceduresforrecoveringduepayments,thefinancialassetsthathavebeenwrittendownmaystillbeaffectedbyexecutionactivities.Incasefinancialassetsthathavebeenwrittendownaresubsequentlyrecovered,thereversedimpairmentlossesshallbebookedintothegainsandlossesofcurrentperiod.

(6)FinancialassettransferFinancialassettransferreferstothetransferordeliveryoffinancialassetstoanotherparty(transferee)otherthantheissuerofthefinancialasset.Ifthecompanyhastransferredalmostalltherisksandrewardsofownershipoffinancialassetstothetransferee,thefinancialassetshallbederecognized;Ifalmostallrisksandrewardsrelatedtoownershipoffinancialassetsareretained,thefinancialassetwillnotbederecognized.Incasethecompanyneithertransfersnorretainsalmostalltherisksandrewardsrelatedtotheownershipoffinancialassets,thefollowingsituationsshallbehandledseparately:ifthecontroloverthefinancialassetisabandoned,thefinancialassetshallbederecognizedandtheresultingassetsandliabilitiesshallberecognized;ifthecontroloverthefinancialassetisnotabandoned,therelevantfinancialassetshallberecognizedbasedonthecontinuedinvolvementofthecompanyinthetransferredfinancialasset,andcorrespondingliabilitiesshallberecognized.

(7)Balance-outbetweenthefinancialassetsandliabilitiesAsthecompanyhasthelegalrighttobalanceoutthefinancialliabilitiesbythenetorliquidationofthefinancialassets,thebalance-outsumbetweenthefinancialassetsandliabilitiesislistedinthebalancesheet.Inaddition,thefinancialassetsandliabilitiesarelistedinthebalancesheetwithoutbeingbalancedout.

12.Notereceivable

13.Accountreceivable

14.Receivablefinancing

15.Otheraccountsreceivable

16.Contractasset

17.Inventory

(1)ClassificationofinventoryInventoryincludesrawmaterials,revolvingmaterial,goodsinprocess,goodsintransitandworkinprocess-outsourcedandsoon.

(2)ValuationmethodsfordeliveryofinventoryTheinventoryofthecompanyisvaluedatactualcostuponacquisition.Therawmaterials,andinventorygoodsarepricedusingtheweightedaveragemethodorindividualvaluationmethodatthetimeofshipping.

(3)DeterminationbasisandprovisionmethodforinventorydepreciationreservesOnthebalancesheetdate,inventoryismeasuredatthelowerbetweencostandnetrealizablevalue.Whenitsnetrealizablevalueislowerthancost,theinventoryimpairmentprovisionismade.Thenetrealizablevalueistheamountobtainedbysubtractingtheestimatedcosttobeincurreduntilcompletion,estimatedsales

expenses,andrelatedtaxesfromtheestimatedsellingpriceofinventory.Whendeterminingthenetrealizablevalueofinventory,itisbasedonconclusiveevidenceobtained,whileconsideringthepurposeofholdinginventoryandtheimpactofeventsafterthebalancesheetdate.Thecompanyusuallymakesinventoryimpairmentprovisionbasedonindividualinventoryitems.Onthebalancesheetdate,ifthefactorsaffectingthepreviouswrite-downofinventoryvaluehavedisappeared,theinventoryimpairmentprovisionshallbereversedwithintheoriginallyprovisionedamount.

(4)InventorysystemInventorysystemistheperpetualinventorysystem.

(5)Amortizationoflow-valueconsumablesandpackagingmaterialsLow-valueconsumablesandpackagingmaterialsadoptthemethodofprimaryresale;

18.Assetheldforsale

(1)Recognitioncriteriaandaccountingtreatmentfornon-currentassetsordisposalgroupsclassifiedasheld-for-salecategoryIncasethecompanyrecoversthecarryingvalueofanon-currentassetoradisposalgroupmainlythroughselling(includingnon-monetaryassetexchangeswithcommercialsubstance)ratherthancontinuoususe,suchnon-currentassetordisposalgroupshallbeclassifiedasheld-for-salecategory.Theabove-mentionednon-currentassetsdonotincludeinvestmentrealestatemeasuredsubsequentlyatfairvalue,biologicalassetsmeasuredatthenetamountoffairvalueminussellingexpenses,assetsformedfromemployeebenefits,financialassets,deferredincometaxassets,andrightsarisingfrominsurancecontracts.Adisposalgroupreferstoagroupofassetsthataredisposedofasawholethroughsaleorothermeansinasingletransaction,aswellastheliabilitiesdirectlyrelatedtotheseassetsthataretransferredinthetransaction.Undercertaincircumstances,adisposalgroupincludesgoodwillobtainedinabusinesscombination.Non-currentassetsordisposalgroupsthatmeetthefollowingconditionssimultaneouslyshallbeclassifiedasheld-for-salecategorycategories:Inaccordancewiththepracticeofsellingsuchassetsordisposalgroupsinsimilartransactions,thenon-currentassetsordisposalgroupscanbesoldimmediatelyintheircurrentstate;thesaleishighlylikelytooccur,thatis,aresolutionhasbeenmadeonasalesplanandafirmpurchasecommitmenthasbeenobtained,anditisexpectedthatthesalewillbecompletedwithinoneyear.Inthecaseoflosingcontroloverasubsidiaryduetoreasonssuchasthesaleofinvestmentinthesubsidiary,regardlessofwhetherthecompanyretainspartoftheequityinvestmentafterthesale,whentheinvestmentinthesubsidiarytobesoldmeetstheclassificationconditionsfortheheld-for-salecategory,theinvestmentinthesubsidiaryasawholeshallbeclassifiedastheheld-for-salecategoryintheindividualfinancialstatements,andalltheassetsandliabilitiesofthesubsidiaryshallbeclassifiedastheheld-for-salecategoryintheconsolidatedfinancialstatements.Wheninitiallymeasuringorre-measuringanon-currentassetordisposalgroupheld-for-saleatthebalancesheetdate,thedifferencebetweenthecarryingvalueandthenetamountoffairvalueminussellingexpensesshallberecognizedasanassetimpairmentloss.Fortheamountofassetimpairmentlossrecognizedforadisposalgroupheld-for-sale,thecarryingvalueofthegoodwillinthedisposalgroupshallbeoffsetfirst,andthenthecarryingvaluesofthevariousnon-currentassetsinthedisposalgroupshallbeoffsetproportionallyaccordingtotheproportionoftheirrespectivecarryingvalues.Ifthenetamountofthefairvalueofanon-currentassetordisposalgroupheld-for-saleminussellingexpensesincreasesatasubsequentbalancesheetdate,thepreviouslywritten-downamountshallberestoredandreversedwithintheamountofassetimpairmentlossrecognizedafterbeingclassifiedasheld-for-salecategory,andthereversedamountshallbeincludedinthecurrentgains/losses.Thewritten-downcarryingvalueofthegoodwillshallnotbereversed.Thenon-currentassetsheld-for-saleandtheassetsinthedisposalgroupheld-for-saleshallnotbedepreciatedoramortized;theinterestandotherexpensesoftheliabilitiesinthedisposalgroupheld-for-saleshallcontinuetoberecognized.Forallorpartof

theinvestmentinassociatedenterpriseorjointventureclassifiedasheld-for-salecategory,theequitymethodofaccountingshallbesuspendedforthepartclassifiedasheld-for-sale,andtheretainedpartnotclassifiedasheld-for-salecategoryshallcontinuetobeaccountedwiththeequitymethod;incasethecompanylosessignificantinfluenceovertheassociatedenterpriseorjointventureduetosale,theequitymethodofaccountingshallbesuspended.Ifacertainnon-currentassetordisposalgroupisclassifiedasheld-for-salecategorybutlaternolongermeetstheclassificationconditionsforheld-for-salecategory,thecompanyshallstopclassifyingitasheld-for-salecategoryandmeasureitatthelowerofthefollowingtwoamounts:

①Thecarryingvalueoftheassetordisposalgroupbeforeitwasclassifiedasheld-for-salecategory,adjustedaccordingtothedepreciation,amortizationorimpairmentthatshouldhavebeenrecognizedassumingithadnotbeenclassifiedasheld-for-salecategory;②Therecoverableamount.

(2)RecognitioncriteriafordiscontinuedoperationsDiscontinuedoperationreferstoaseparatelydistinguishablecomponentthathasbeendisposedofbythecompanyorclassifiedasheld-for-salecategorybythecompanyandmeetsoneofthefollowingconditions:

①Thecomponentrepresentsanindependentmajorbusinessoraseparatemajoroperatingregion.②Thecomponentispartofarelatedplanforthedisposalofanindependentmajorbusinessoraseparatemajoroperatingregion.③Thecomponentisasubsidiaryacquiredspecificallyforresale.

(3)PresentationThecompanypresentsthenon-currentassetsheld-for-saleortheassetsinthedisposalgroupheld-for-saleinthebalancesheetin“Assetsheld-for-sale”,andpresentstheliabilitiesinthedisposalgroupheld-for-salein“Liabilitiesheld-for-sale”.Thecompanypresentsthegains/lossesfromcontinuingoperationsandthegains/lossesfromdiscontinuedoperationsseparatelyintheincomestatement.Fornon-currentassetsordisposalgroupsheld-for-salethatdonotmeetthedefinitionofdiscontinuedoperations,theirimpairmentlosses,reversalamountsanddisposalgains/lossesarepresentedasthegains/lossesfromcontinuingoperations.Theimpairmentlosses,reversalamountsandotheroperatinggains/lossesaswellasdisposalgains/lossesofdiscontinuedoperationsarepresentedasgains/lossesfromdiscontinuedoperations.Adisposalgroupthatisintendedtobetakenoutofuseratherthansoldandmeetstheconditionsoftherelevantcomponentinthedefinitionofdiscontinuedoperationsshallbepresentedasadiscontinuedoperationasofthedateofitscessationofuse.Forthediscontinuedoperationspresentedinthecurrentperiod,inthecurrentfinancialstatements,theinformationthatwasoriginallypresentedasgains/lossesfromcontinuingoperationsisre-presentedasgains/lossesfromdiscontinuedoperationsforthecomparableaccountingperiod.Ifadiscontinuedoperationnolongermeetstheclassificationconditionsfortheheld-for-salecategory,inthecurrentfinancialstatements,theinformationthatwasoriginallypresentedasgains/lossesfromdiscontinuedoperationsisre-presentedasgains/lossesfromcontinuingoperationsforthecomparableaccountingperiod.

19.Creditors’investment

20.Othercreditors’investment

21.Long-termaccountsreceivable

22.Long-termequityinvestment

Longtermequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventures,andassociatedenterprises.Inthejointventure,thecompanyiscapableofexertingsignificantinfluenceontheinvestedentity.

(1)DeterminationofinitialinvestmentcostLongtermequityinvestmentsformedfromenterprisemerge:Forlong-termequityinvestmentsobtainedthroughmergeofenterpriseunderthesamecontrol,theinvestmentcostshallbedeterminedbasedontheshareofthebookvalueofthetheshareholders’equityofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrolleronthemergerdate;Thelong-termequity

investmentobtainedthroughthemergerofenterprisesnotunderthesamecontrolshallberecognizedastheinvestmentcostofthelong-termequityinvestmentbasedonthemergercost.Long-termequityinvestmentsobtainedthroughothermeans:Forthelong-termequityinvestmentsobtainedbypayingcash,theactualpurchasepricepaidshallbetheinitialinvestmentcost;Forlong-termequityinvestmentsobtainedthroughtheissuanceofequitysecurities,thefairvalueoftheissuedequitysecuritiesshallbetheinitialinvestmentcost.

(2)SubsequentmeasurementandrecognitionmethodsofgainsandlossesInvestmentsinsubsidiariesaremeasuredwiththecostmethod,unlesstheinvestmentmeetstheconditionsforholdingforsale;Investmentsinassociatedenterprisesandjointventuresaremeasuredwithequitymethod.Forthelong-termequityinvestmentsmeasuredwithcostmethod,exceptforcashdividendsorprofitsdeclaredbutnotyetdistributedintheactualpaymentorconsiderationreceivedatthetimeofinvestment,thecashdividendsorprofitsdeclaredbytheinvesteeshallberecognizedasinvestmentincomeandbookedintogainsandlossesincurrentperiod.Forlong-termequityinvestmentsmeasuredwiththeequitymethod,iftheinitialinvestmentcostisgreaterthanthefairvalueofidentifiablenetassetsoftheinvestedentityheldatthetimeofinvestment,theinvestmentcostofthelong-termequityinvestmentshallnotbeadjusted;Iftheinitialinvestmentcostislessthanthefairvalueoftheidentifiablenetassetsoftheinvestedentityheldatthetimeofinvestment,thebookvalueofthelong-termequityinvestmentshallbeadjusted,andthedifferenceshallberecognizedinthegainsandlossesoftheinvestmentperiod.Whenmeasuredwithequitymethod,investmentincomeandothercomprehensiveincomeshallberecognizedseparatelybasedontheshareofnetgainsandlossesandothercomprehensiveincomethatshouldbeenjoyedorsharedbytheinvestedentity,andthebookvalueoflong-termequityinvestmentsshallbeadjusted;Thebookvalueoflong-termequityinvestmentsshallbereducedcorrespondinglyintermsoftheportionthatshouldbeenjoyedbasedontheprofitsorcashdividendsdeclaredbytheinvestedentity;Otherchangesinshareholders’equityoftheinvestedentity,exceptfornetgainsandlosses,othercomprehensiveincome,andprofitdistribution,shalladjustthebookvalueoflong-termequityinvestmentsandbebookedintocapitalreserves(othercapitalreserves).Basedonthefairvalueofidentifiableassetsoftheinvestedentityatthetimeofacquisitionoftheinvestment,theshareofnetgainsandlossesthatshouldbeenjoyedintheinvestedentityshallbeadjustedaccordingtotheaccountingpoliciesandaccountingperiodsofthecompanybeforerecognition.Ifsignificantinfluenceorjointcontrolcanbeexertedontheinvestedentityduetoadditionalinvestmentorotherreasons,butdoesnotconstitutingcontrol,ontheconversiondate,theinitialinvestmentcostmeasuredagainwithequitymethodshallbethesumofthefairvalueoftheoriginalequityandtheadditionalinvestmentcost.Iftheoriginalequityisclassifiedasanon-tradableequityinstrumentinvestmentmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome,thecumulativefairvaluechangesrelatedthatwereoriginallyrecognizedinothercomprehensiveincomeshallbetransferredtoretainedincomewhentheequitymethodisusedforaccounting.Ifthejointcontrolorsignificantimpactontheinvestedentityislostduetothedisposalofsomeequityinvestmentsorotherreasons,theremainingequityafterdisposalshallbesubjecttoaccountingtreatmentinaccordancewithAccountingStandardsforEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsonthedateoflossofjointcontrolorsignificantimpact,andthedifferencebetweenfairvalueandbookvalueshallberecognizedingainsandlossesincurrentperiod.Othercomprehensiveincomerecognizedforequityinvestmentswithequitymethodshallbemeasuredonthesamebasisasthedirectdisposalofrelevantassetsorliabilitiesbytheinvestedentitywhentheequitymethodisterminated;Otherchangesinshareholders'equityrelatedtotheoriginalequityinvestmentaretransferredtogainsandlossesincurrentperiod.Ifcontrolovertheinvesteeislostduetothedisposalofaportionofequityinvestmentorotherreasons,andtheremainingequityafterdisposalcanexercisejointcontrolorsignificantinfluenceovertheinvestee,itshallbemeasuredwithequitymethod,andthe

remainingequityshallbedeemedtobeadjustedwiththeequitymethodfromthetimeofacquisition;Iftheremainingequityafterdisposalcannotexercisejointcontrolorhaveasignificantimpactontheinvestedentity,itshallbemeasuredinaccordancewiththerelevantprovisionsofEnterpriseAccountingStandardNo.22-RecognitionandMeasurementofFinancialInstruments.Thedifferencebetweenthefairvalueandthebookvalueonthedateoflossofcontrolshallberecognizedingainsandlossesincurrentperiod.IftheshareholdingratiooftheCompanydecreasesduetocapitalincreasebyotherinvestors,andthecompanylosescontrolovertheinvestedentitybutisabletoexercisejointcontrolorexertsignificantinfluenceontheinvestedentity,theCompanyshallrecognizetherisingnetassetsoftheinvestedentityheldbythecompanyduetocapitalincreaseandshareexpansionaccordingtothenewshareholdingratio,andthedifferencebetweentheoriginalbookvalueofthelong-termequityinvestmentcorrespondingtothedecreaseinshareholdingratiothatshouldbecarriedforwardshallbeincludedinthecurrentgainsandlosses,andthenitshallbeadjustedintermsofthenewshareholdingratiojustasitismeasuredwithequitymethodwhentheinvestmentisobtained.TheunrealizedinternaltransactiongainsandlossesbetweentheCompanyanditsassociatedenterprisesandjointventuresshallbecalculatedintermsoftheproportionofshareholdingandrecognizedasinvestmentgainsandlossesonthebasisofoffsetting.However,theunrealizedinternaltransactionlossesincurredbytheCompanyandtheinvestedentity,whichistheimpairmentlossesofthetransferredassets,shallnotbeoffset.

(3)CriteriaofjointcontrolandsignificantinfluenceJointcontrolistheCompany’scontractuallyagreedsharingofcontroloveranarrangement,whichrelevantactivitiesofsucharrangementmustbedecidedbyunanimouslyagreementfrompartieswhosharecontrol.Whendeterminingwhetherthereisjointcontrol,firstlyjudgewhetheralltheparticipantsorparticipantgrouphavecontrollingoversucharrangementasagroupornot,andthenjudgewhetherthedecision-makingforsucharrangementareagreedunanimitybytheparticipantsornot.Ifallparticipantsoragroupofparticipantsmustacttogethertodeterminetherelevantactivitiesofacertainarrangement,itisconsideredthatallparticipantsoragroupofparticipantscollectivelycontrolthearrangement;Iftherearetwoormoreportfoliosofparticipantstocollectivelycontrolacertainarrangement,itdoesnotconstitutejointcontrol.Whendeterminingwhetherthereisjointcontrol,theprotectiverightsenjoyedarenotconsidered.SignificantinfluenceisthepoweroftheCompanytoparticipateinthefinancialandoperatingpolicydecisionsofaninvestedparty,buttofailtocontrolorjointcontroltheformulationofsuchpoliciestogetherwithotherparties.Whendeterminingwhethersignificantinfluencecanbeexertedontheinvestedentity,thepotentialfactorsofvotingpowerascurrentconvertiblebondsandcurrentexecutablewarrantoftheinvestedpartyheldbyinvestorsandotherpartiesshallbeconsidered.Whenthecompanydirectlyorindirectlyownsmorethan20%(inclusive)butlessthan50%ofthevotingsharesoftheinvestedentitythroughitssubsidiaries,itisgenerallyconsideredtohaveasignificantimpactontheinvestedentity,unlessthereisclearevidencethatitcannotparticipateintheproductionandoperationdecisionsoftheinvestedentityanddoesnotformasignificantimpact;Whenthecompanyownslessthan20%(exclusive)ofthevotingsharesoftheinvestedentity,itisgenerallynotconsideredtohaveasignificantimpactontheinvestedentity,unlessthereisclearevidencethatitcanparticipateintheproductionandoperationdecisionsoftheinvestedunitandformasignificantimpact.

23.InvestmentrealestateMeasurementmodelforinvestmentrealestateMeasuredwithcostmethodDepreciationoramortizationmethodsInvestmentrealestatereferstorealestateheldforthepurposeofearningrentorcapitalappreciation,orboth.Thecompany’s

investmentrealestateincludesleasedlanduserights,landuserightsheldandpreparedfortransferafterappreciation,andleasedbuildings.Thecompany'sinvestmentrealestateisinitiallymeasuredatcostatthetimeofacquisitionanddepreciatedoramortizedonaregularbasisinaccordancewithrelevantregulationsforfixedorintangibleassets.Thedifferencebetweenthedisposalincomefromsale,transfer,scrapping,ordamageofinvestmentrealestateafterdeductingitsbookvalueandrelatedtaxesandfeesisrecognizedingainsandlossesincurrentperiod.

24.Fixedassets

(1)RecognitionconditionsThecompany’sfixedassetsrefertotangibleassetsheldfortheproductionofgoods,provisionofservices,rentalorbusinessmanagement,withausefullifeexceedingoneaccountingyear.Fixedassetscanonlyberecognizedwhentheeconomicbenefitsrelatedtothefixedassetarelikelytoflowintotheenterpriseandthecostofthefixedassetcanbereliablymeasured.Thecompany’sfixedassetsareinitiallymeasuredattheiractualcostatthetimeofacquisition.Subsequentexpensesrelatedtofixedassetsarerecognizedasfixedassetcostswhentheeconomicbenefitsrelatedtothemarelikelytoflowintothecompanyandtheircostscanbereliablymeasured;Thedailyrepairexpensesoffixedassetsthatdonotmeetthesubsequentexpenditureconditionsforcapitalizationoffixedassetsshallberecognizedingainsandlossesincurrentperiodorinthecostofrelatedassetsaccordingtothebeneficiariesatthetimeofoccurrence.Forthereplacedpart,itsbookvalueshallbeterminated.

(2)Depreciationmethod

Amongthem,forfixedassetswithimpairmentprovision,thecumulativeamountofimpairmentprovisionoffixedassetsshouldalsobedeductedtodeterminethedepreciationrate.

1)Attheendofeachyear,thecompanyreviewstheusefullives,estimatedresidualvaluesanddepreciationmethodsofits

fixedassets.Ifthereisadifferencebetweentheexpectedusefullifeandtheoriginalestimate,theusefullifeofthefixedassetshallbe

adjusted;ifthereisadifferencebetweentheestimatedresidualvalueandtheoriginalestimate,theestimatedresidualvalueshallbeadjusted.

2)Disposaloffixedassets

Whenafixedassetisdisposedof,oritisexpectedthatnoeconomicbenefitsarisefromitsuseordisposal,suchfixedassetshallbede-recognized.Theamountobtainedfromthedisposaloffixedasset(includingsales,transfers,scrappingordamage),afterdeductingitscarryingvalueandrelevanttaxesandfees,shallbeincludedinthecurrentgains/losses.

25.Constructioninprogress

Thecostofconstructioninprogressofthecompanyisdeterminedbasedonactualprojectexpenses,includingnecessaryprojectexpensesincurredduringtheconstructionperiod,borrowingcoststhatshouldbecapitalizedbeforetheprojectreachesitsintendedusablestate,andotherrelatedexpenses.Constructioninprogressistransferredtofixedassetswhenitreachesitsintendedusablestate.

26.Borrowingexpenses

(1)RecognitionoftheborrowingexpensescapitalizationTheborrowingcostsincurredbythecompany,whichcanbedirectlyattributedtotheacquisition,constructionorproductionofassetsthatmeetthecapitalizationconditions,shallbecapitalizedandincludedintherelevantassetcosts;Otherborrowingcostsarerecognizedasexpensesbasedontheiramountatthetimeofoccurrenceandincludedinthecurrentprofitandloss.Theborrowingcostsmeetingthefollowingconditionssimultaneouslyshallbecapitalized:

①Assetexpenseshavealreadyoccurred,includingexpensesincurredintheformofcashpayments,transferofnon-cashassets,orassuminginterestbearingdebtsforthepurchase,construction,orproductionofassetsthatmeetcapitalizationconditions;②Theborrowingcostshavealreadybeenincurred;

③Thenecessarypurchase,constructionorproductionactivitiestobringtheassetstotheirintendedusableorsaleablestatehavealreadybegun.

(2)DuringthecapitalizationperiodofborrowingcostsWhenassetspurchasedorproducedbythecompanythatmeetcapitalizationconditionsreachtheintendedusableorsaleablestate,thecapitalizationofborrowingcostsshallbeceased.Theborrowingcostsincurredaftertheassetsthatmeetthecapitalizationconditionsreachtheirintendedusableorsaleablestatusarerecognizedasexpensesbasedontheiramountatthetimeofoccurrenceandrecognizedingainsandlossesincurrentperiod.Ifassetsthatmeetthecapitalizationcriteriaexperienceabnormalinterruptionsduringthepurchase,construction,orproductionprocess,andtheinterruptionlastsformorethanthreeconsecutivemonths,thecapitalizationofborrowingcostsshallbesuspended;Theborrowingcostsduringthenormalinterruptionperiodcontinuetobecapitalized.

(3)ThecapitalizationrateofborrowingcostsandthecalculationmethodofcapitalizationamountTheactualinterestexpensesincurredinthecurrentperiodofspecializedborrowing,minustheinterestincomeobtainedfromdepositingunusedborrowingfundsintobanksortheinvestmentincomeobtainedfromtemporaryinvestments,shallbecapitalized;Thecapitalizationamountofgeneralborrowingisdeterminedbymultiplyingtheweightedaverageoftheaccumulatedassetexpendituresthatexceedtheportionofspecializedborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateisdeterminedbasedontheweightedaverageinterestrateofgeneralborrowing.Duringthecapitalizationperiod,allexchangedifferencesonforeigncurrencyborrowingsshallbecapitalized;Theexchange

differenceofforeigncurrencygeneralborrowingsisrecognizedingainsandlossesincurrentperiod.

27.Biologicalassets

(1)CriteriafordeterminingbiologicalassetsBiologicalassetsrefertoassetscomposedoflivinganimalsandplants.Biologicalassetsthatsimultaneouslymeetthefollowingconditionsshallberecognized:

①Assetexpenseshavealreadyoccurred,includingexpensesincurredintheformofcashpayments,transferofnon-cashassets,orassuminginterestbearingdebtsforthepurchase,construction,orproductionofassetsthatmeetcapitalizationconditions;②Theborrowingcostshavealreadybeenincurred;③Thenecessarypurchase,constructionorproductionactivitiestobringtheassetstotheirintendedusableorsaleablestatehavealreadybegun.

(2)ClassificationofbiologicalassetsThebiologicalassetsofthecompanyincludeproductivebiologicalassets.

①ProductivebiologicalassetsThebiologicalassetsofthecompanyareproductivebiologicalassets.Productivebiologicalassetsrefertobiologicalassetsheldforthepurposeofproducingagriculturalproducts,providingservices,orrenting.Productivebiologicalassetsareinitiallymeasuredatcost.Subsequentexpensesincurredonproductivebiologicalassetsafterachievingtheintendedproductionandoperationobjectivesarerecognizedingainsandlossesincurrentperiod.Themanagementandfeedingexpensesincurredaftertheclosureorachievementoftheintendedproductionandoperationobjectivesofproductivebiologicalassetsarepresentedinthecurrentgains/losses.Themainproductivebiologicalassetsofthecompanyareteatrees.Forproductivebiologicalassetsthatachievethepredeterminedproductionandoperationobjectives,depreciationismadewiththestraight-linemethod.Theusefullifeisdeterminedastheremaininglifeoflanduseafterdeductingtheimmatureperiodofteatrees(5years),witharesidualvaluerateof5.00%.Afterdeductingresidualvaluefromtheestimatedusefullifeofbiologicalassets,thedepreciationrateisdeterminedasfollows:

thecompanyshallreviewtheusefullife,estimatednetresidualvalue,anddepreciationmethodofproductivebiologicalassetsatleastattheendoftheyear.Anychangesshallbetreatedaschangesinaccountingestimates.Thedifferencebetweenthedisposalincomefromthesale,inventoryloss,deathordamageofproductivebiologicalassets,afterdeductingtheirbookvalueandrelatedtaxesandfees,isrecognizedingainsandlossesincurrentperiod.

(3)TreatmentofimpairmentofbiologicalassetsIfthenetrealizablevalueofconsumablebiologicalassetsislowerthantheirbookvalue,aimpairmentprovisionofbiologicalassetsshallbemadeintermsofthedifferencebetweenthenetrealizablevalueandthebookvalue,andshallbebookedintogainsandlossesincurrentperiod.Ifthefactorsaffectingtheimpairmentofconsumablebiologicalassetshavedisappeared,thewrite-downamountshouldberestoredandreversedwithintheoriginalimpairmentprovision,andthereversedamountshouldberecognizedingainsandlossesincurrentperiod.Noimpairmentprovisionismadeforpublicwelfarebiologicalassets.

28.Oilandgasassets

29.Intangibleassets

(1)Servicelifeanditsdeterminationbasis,estimatedsituation,amortizationmethodorreviewprocedureTheintangibleassetsofthecompanyincludelanduserights,forestuserights,trademarkuserights,storeoperationrights,softwareuserights,patents,andothers.Intangibleassetsareinitiallymeasuredatcostandanalyzedfortheirusefullifeuponacquisition.Forintangibleassetswithalimitedusefullife,theamortizationmethodthatreflectstheexpectedrealizationofeconomicbenefitsrelatedtotheassetshallbeadoptedfromthetimewhentheintangibleassetisavailableforuse,andshallbeamortizedwithintheexpectedusefullife;Iftheexpectedimplementationmethodcannotbereliablydetermined,thestraight-linemethodshallbeusedforamortization;Intangibleassetswithuncertainusefullivesarenotamortized.Theamortizationmethodforintangibleassetswithlimitedservicelifeisasfollows:

Estimationoftheservicelifeofintangibleassetswithlimitedservicelife

Attheendofeachfiscalyear,thecompanyreviewstheusefullifeandamortizationmethodofintangibleassetswithlimitedusefullives.Iftherearedifferencesfrompreviousestimates,theoriginalestimateswillbeadjustedandtreatedaschangesinaccountingestimates.Ifitisexpectedthatacertainintangibleassetwillnolongerbringfutureeconomicbenefitstotheenterpriseonthebalancesheetdate,thebookvalueoftheintangibleassetshallbefullytransferredtothegainsandprofitsofcurrentperiod.

(2)ThecollectionscopeandrelatedaccountingtreatmentmethodsofR&DexpenditureTheR&DexpensesofthecompanyaredirectlyrelatedtoourR&Dactivities,includingemployeesalaries,directinvestmentexpenses,depreciationexpensesandlong-termdeferredexpenses,designexpenses,equipmentdebuggingexpenses,intangibleassetamortizationexpenses,andotherexpenses.ThesalariesofR&DpersonnelareallocatedtoR&Dexpensesbasedonprojectworkinghours.Thesharingofequipment,productionlines,andvenuesbetweenR&DactivitiesandotherproductionandoperationactivitiesisallocatedasR&Dexpensesbasedontheproportionofworkinghoursandarea.ThecompanydistinguishestheexpensesforinternalR&Dprojectsintoresearchstageexpensesanddevelopmentstageexpenses.Theexpensesincurredduringtheresearchphasearerecognizedinthegainsandprofitsofcurrentperiodwhenincurred.Expendituresduringthedevelopmentphasecanonlybecapitalizediftheymeetthefollowingconditions:completingtheintangibleassettomakeittechnicallyfeasibleforuseorsale;Hastheintentiontocompletetheintangibleassetanduseorsellit;Thewaysinwhichintangibleassetsgenerateeconomicbenefits,includingtheabilitytoprovethattheproductsproducedwiththeintangibleassetortheintangibleassetaremarketable,andtheabilitytoproveitsusefulnessiftheintangibleassetwillbeusedinternally;Have

sufficienttechnical,financial,andotherresourcestosupportthedevelopmentoftheintangibleassetandtheabilitytouseorselltheintangibleasset;Theexpensesattributabletothedevelopmentstageoftheintangibleassetcanbereliablymeasured.Developmentexpensesthatdonotmeettheaboveconditionsarerecognizedinthegainsandprofitsofcurrentperiod.Aftermeetingtheaboveconditionsandconductingtechnicalandeconomicfeasibilitystudies,thecompany'sR&Dprojectentersthedevelopmentstageafterbeingapproved.Thecapitalizedexpensesduringthedevelopmentstagearelistedasdevelopmentexpensesonthebalancesheetandareconvertedintointangibleassetsfromthedatetheprojectreachesitsintendeduse.

30.Impairmentoflong-termassets

Theimpairmentofassetssuchaslong-termequityinvestmentsinsubsidiaries,associatedenterprises,andjointventures,investmentrealestate,fixedassets,constructioninprogress,productivebiologicalassetsmeasuredwithcostmodels,right-of-useassets,intangibleassets,andgoodwill(excludinginventory,deferredincometaxassets,andfinancialassets)shallbedeterminedwiththefollowingmethod:

Onthebalancesheetdate,itisdeterminedwhetherthereareanysignsofpossibleimpairmentofassets.Iftherearesignsofimpairment,thecompanywillestimateitsrecoverableamountandconductimpairmenttesting.Impairmenttestsareconductedannuallyforgoodwill,intangibleassetswithuncertainusefullives,andintangibleassetsthathavenotyetreachedausablestate,regardlessofwhethertherearesignsofimpairment,resultingfrombusinessmergers.Therecoverableamountisdeterminedbasedonthehigherofthenetamountafterdeductingdisposalexpensesfromthefairvalueoftheassetandthepresentvalueoftheexpectedfuturecashflowsoftheasset.Thecompanyestimatesitsrecoverableamountbasedonindividualassets;Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupshallbedeterminedbasedontheassetgrouptowhichtheassetbelongs.Therecognitionofanassetgroupisbasedonwhetherthemaincashinflowsgeneratedbytheassetgroupareindependentofthecashinflowsofotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislowerthanitsbookvalue,thecompanywillwritedownitsbookvaluetotherecoverableamount,andthewrittendownamountwillberecognizedinthegainsandprofitsofcurrentperiod,whilemakingcorrespondingprovisionsforassetimpairment.Asfortheimpairmenttestofgoodwill,thebookvalueofgoodwillformedbyenterprisemergershallbeallocatedtotherelevantassetgroupinareasonablemannerfromthedateofpurchase;Ifitisdifficulttoallocatetotherelevantassetgroups,allocateittotherelevantassetgroupportfolio.Therelevantassetgroupsorassetgroupportfoliorefertoassetgroupsorassetgroupportfoliothatcanbenefitfromthesynergisticeffectsofenterprisemergers,andarenotlargerthanthereportingbranchesdeterminedbythecompany.Whenconductingimpairmenttesting,iftherearesignsofimpairmentinassetgroupsorassetgroupportfoliosrelatedtogoodwill,thefirststepistoconductimpairmenttestingonassetgroupsorassetgroupportfoliothatdonotincludegoodwill,calculatetherecoverableamount,andrecognizethecorrespondingimpairmentlosses.Thenconductimpairmenttestsonassetgroupsorassetgroupcombinationscontaininggoodwill,andcomparetheirbookvaluewiththeirrecoverableamount.Iftherecoverableamountislowerthanthebookvalue,recognizeimpairmentlossesongoodwill.Onceassetimpairmentlossesarerecognized,theywillnotbereversedinfutureaccountingperiods.

31.LongtermdeferredexpensesThelong-termdeferredexpensesincurredbythecompanyarevaluedatactualcostandamortizedonanaverageovertheexpectedbenefitperiod.Forlong-termdeferredexpensesthatcannotbenefitfutureaccountingperiods,theiramortizedvalueisfullyrecognizedinthegainsandprofitsofcurrentperiod.

32.Contractliabilities

33.Employeecompensation

(1)Accountingtreatmentmethodsforshort-termcompensationDuringtheaccountingperiodwhentheemployeesproviderservicetothecompany,theactualemployeewages,bonuses,medicalinsurancepremiums,work-relatedinjuryinsurancepremiums,maternityinsurancepremiums,andhousingprovidentfundpaidtoemployeesaccordingtoprescribedstandardsandproportionsarerecognizedasliabilitiesandincludedinthegainsandprofitsofcurrentperiodorrelatedassetcosts.

(2)AccountingtreatmentmethodsforpostemploymentbenefitsThepostemploymentwelfareplanincludesadefinedcontributionplanandadefinedbenefitplan.Inthedefinedcontributionplan,thecompanynolongerbearsfurtherpaymentobligationsafterpayingfixedfeestoanindependentfund;Adefinedbenefitplanreferstoapostemploymentwelfareplanotherthanadefinedcontributionplan.DefinedcontributionplansIncludebasicpensioninsurance,unemploymentinsurance,andenterpriseannuityplans.Duringtheaccountingperiodwhenemployeesprovideservices,theamountofcontributionscalculatedbasedonthedefinedcontributionplanisrecognizedasliabilityandincludedinthegainsorlossesofcurrentperiodorrelatedassetcosts.DefinedbenefitplansFordefinedbenefitplans,theactuarialvaluationisconductedbyanindependentactuaryontheannualbalancesheetdate,andthecostofprovidingbenefitsisdeterminedwiththeexpectedcumulativebenefitunitmethod.Theemployeecompensationcostresultingfromthedefinedbenefitplansetbythecompanyincludesthefollowingcomponents:

①Servicecosts,includingcurrentservicecosts,pastservicecosts,andsettlementgainsorlosses.Amongthem,thecurrentservicecostreferstotheincreaseinthepresentvalueofobligationsofthedefinedbenefitplancausedbytheprovisionofservicesbyemployeesinthecurrentperiod;Thepastservicecostreferstotheincreaseordecreaseinthepresentvalueofthedefinedbenefitplanobligationsrelatedtoemployeeservicesinthepreviousperiodcausedbythemodificationofthedefinedbenefitplan.②Thenetinterestonnetliabilitiesornetassetsofadefinedbenefitplan,includinginterestincomeonassetsofdefinedbenefitplan,interestexpensesonobligationsofdefinedbenefitplan,andinterestaffectedbyassetcap.

③Thechangesresultingfromremeasuringthenetliabilitiesornetassetsofthedefinedbenefitplan.Unlessotheraccountingstandardsrequireorallowemployeewelfarecoststobeincludedinassetcosts,thecompanywillincludeitems①and②inthegainsandprofitsofcurrentperiod;The③isincludedinothercomprehensiveincomeandwillnotbereversedtoprofitorlossinsubsequentaccountingperiods.Whentheoriginaldefinedbenefitplanisterminated,alltheportionoriginallyincludedinothercomprehensiveincomewillbecarriedovertoundistributedprofitswithinthescopeofequity.

(3)AccountingtreatmentmethodsforterminationbenefitsIfthecompanyprovidesterminationbenefitstoemployees,theemployeecompensationliabilityarisingfromterminationbenefitsshallberecognizedandincludedinthegainsandprofitsofcurrentperiodassoonaspossible,whenthecompanycannotunilaterallywithdrawtheterminationbenefitsprovidedduetotheterminationoflaborrelationsplanorlayoffproposal;Whenthecompanyconfirmsthecostsorexpensesrelatedtorestructuringinvolvingpaymentofterminationbenefits.Forthosewhoimplementaninternalretirementplanforemployees,economiccompensationbeforetheofficialretirementdateis

consideredasterminationbenefits.Duringtheperiodfromthedatetheemployeestopsprovidingservicestothenormalretirementdate,thesalaryandsocialinsurancepremiumstobepaidtotheretiredemployeeshallbeincludedinthecurrentprofitandlossinalumpsum.Economiccompensationaftertheofficialretirementdate(suchasnormalpension)shallbetreatedaspostemploymentbenefits.

(4)Accountingtreatmentmethodforotherlong-termemployeebenefitsOtherlong-termemployeebenefitsprovidedbythecompanytoemployeesthatmeettheconditionsfordefinedcontributionplanshallbehandledinaccordancewiththerelevantprovisionsonsettingupadefinedcontributionplanmentionedabove.Thosewhichmeetconditionsfordefinedbenefitplanshallbetreatedinaccordancewiththerelevantprovisionsonthesetbenefitplanmentionedabove.However,“changesarisingfromremeasuringthenetliabilitiesornetassetsofthesetbenefitplan”intherelevantemployeecompensationshallbeincludedinthecurrentprofitandlossorrelatedassetcost.

34.AccrualliabilityTheCompanywillrecognizetheobligationsrelatedtocontingenciesasexpectedliabilitieswhentheymeetthefollowingconditions:

(1)TheresponsibilityisacurrentresponsibilityundertakenbytheCompany;

(2)Fulfillingoftheresponsibilitymayleadtofinancialbenefitoutflow;

(3)Theresponsibilitycanbemeasuredreliablyforitsvalue.Accrualliabilitiesareinitiallymeasuredbasedonthebestestimateoftheexpensesrequiredtofulfillcurrentobligations,takingintoaccountfactorssuchasrisk,uncertaintyandtimevalueofmoneyrelatedtocontingencies.Ifthetimevalueofcurrencyhasasignificantimpact,thebestestimateisdeterminedbydiscountingtherelevantfuturecashoutflows.Thecompanyreviewsthebookvalueofestimatedliabilitiesonthebalancesheetdateandadjuststhebookvaluetoreflectthecurrentbestestimate.Ifallorpartoftheexpensesrequiredtosettletheconfirmedaccrualliabilitiesareexpectedtobecompensatedbyathirdpartyorotherparties,thecompensationamountcanonlybeseparatelyrecognizedasanassetwhenitisbasicallycertainthatitwillbereceived.Theconfirmedcompensationamountdoesnotexceedthebookvalueoftherecognizedliability.

35.Share-basedpayment

36.Otherfinancialinstrumentofpreferredstocksandperpetualbond

37.RevenueDisclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementbybusinesstype

(1)GeneralprinciplesThecompanyrecognizesrevenuewhenthecustomeracquirescontroloftherelevantgoodsorservicesinaccordancewiththecontractualobligations.Ifthecontractcontainstwoormoreperformanceobligations,thecompanyshall,onthecommencementdateofthecontract,allocatethetransactionpricetoeachindividualperformanceobligationbasedontherelativeproportionoftheindividualsellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligation,andmeasurerevenuebasedonthetransactionpriceallocatedtoeachindividualperformanceobligation.Ifoneofthefollowingconditionsismet,itistofulfilltheperformanceobligationwithinacertainperiodoftime;Otherwise,itistofulfiltheperformanceobligationatacertainpointoftime:

①Thecustomerobtainsandconsumestheeconomicbenefitsbroughtbythecompany'sperformanceatthesametimeasthecompanyfulfillsitsobligations.

②Customersareabletocontrolthegoodsunderconstructionduringthefulfillmentprocessofthecompany.

③Thegoodsproducedbythecompanyduringtheperformanceprocesshaveirreplaceableuses,andthecompanyhastherighttocollectpaymentsforthecumulativecompletedperformanceportionthroughouttheentirecontractperiod.Forperformanceobligationsperformedduringacertainperiodoftime,thecompanyrecognizesrevenuebasedontheprogressofperformanceduringthatperiod.Incasetheprogressofperformancecannotbereasonablydetermined,whenthecostsalreadyincurredbythecompanyareexpectedtobecompensated,revenueshallberecognizedintermsoftheamountofcostsalreadyincurreduntiltheprogressofperformancecanbereasonablydetermined.Forperformanceobligationsperformedatacertainpointoftime,thecompanyrecognizesrevenueatthepointwhenthecustomerobtainscontroloftherelevantgoodsorservices.Whendeterminingwhetheracustomerhasacquiredcontrolovergoodsorservices,thecompanywillconsiderthefollowingsigns:

①Thecompanyhasthecurrentpaymentrightforthegoodsorservices,whichmeansthatthecustomerhasacurrentpaymentobligationforthegoods.

②Thecompanyhastransferredthelegalownershipoftheproducttothecustomer,thatis,thecustomeralreadyhaslegalownershipoftheproduct.

③Thecompanyhastransferredthephysicalownershipoftheproducttothecustomer,whichmeansthecustomerhasalreadytakenpossessionoftheproduct.

④Thecompanyhastransferredthemainrisksandrewardsofownershipoftheproducttothecustomer,thatis,thecustomerhasacquiredthemainrisksandrewardsofownershipoftheproduct.⑤Thecustomerhasacceptedtheproductorservice.⑥Othersignsindicatingthatthecustomerhasobtainedcontrolovertheproduct.

(2)Specificmethods

①GrainandoiltradeandprocessingbusinessTherevenuefromsalesofgoodsisrecognizedafterthegoodssolddomesticallyhavebeendeliveredandmeettherelevanttermsandconditionsstipulatedinthecontract;Therevenueofexportsalesisrecognizedafterthegoodshavebeenshippedanddeclared,andmeettherelevanttermsandconditionsstipulatedinthecontract.

②GrainandoilstoragelogisticsandservicesDynamicgrainandoilreservesandrotationservices:recognizeincomewhenrelevantlaboractivitiesoccur.Specifically,theincomefromgrainandoilreservesiscalculatedandrecognizedmonthlybasedontheactualamountofgrainandoilreservesandthereservepricesspecifiedintheShenzhenMunicipalGovernmentGrainReserveCostContractOperatingRegulationsandtheShenzhenMunicipalEdibleVegetableOilGovernmentReserveCostContractOperatingRegulations.Thewarehousing,logisticsandtransshipmentbusiness,includingservicessuchaswarehousing,loadingontoships,directpick-up,fumigationandtransferringgoodsbetweenwarehouses,isrecognizedbycalculatingaccordingtothechargingtimeandmethodstipulatedinthecontractoragreement.③Food,beverageandteaprocessing

Thecompanyshallrecognizerevenuewhenithasdeliveredtheproductstothebuyersasagreedinthecontractandobtainedthebuyers'receiptconfirmation,thebuyershaveobtainedthecontroloftheproducts,thepaymenthasbeenreceivedorthepaymentvoucherhasbeenobtained,andtherelevanteconomicbenefitsarehighlylikelytoflowin.

④LeasingbusinessForpropertyleasingservices,therealizationofrevenueshallberecognizedonthedatewhenthelesseeisduetopaytherentasspecifiedinthetransactioncontractoragreement.⑤OtherbusinessesTherevenuefrompropertymanagementservicesshallberecognizedwhentherelevantlaborservicesoccurandthepaymentisreceivedsimultaneouslyorthevoucherforreceivingthepaymentisobtained.Therevenueofotherbusinessesshallbemeasuredandrecognizedaccordingtothechargingtimeandmethodstipulatedinthecontractoragreement.Incasesimilarbusinessesadoptdifferentbusinessmodels,differentrevenuerecognitionmethodsandmeasurementmethodswillbeinvolved.

38.ContractcostThecontractcostincludestheincrementalcostincurredtoobtainthecontractandthecontractperformancecost.Theincrementalcostincurredtoobtainthecontractreferstothecostthatthecompanywouldnothaveincurredwithoutobtainingthecontract(suchassalescommission).Thecostwhichisexpectedtoberecoveredwillberecognizedbythecompanyasacontractacquisitioncostandasanasset.Exceptfortheexpectedincrementalcoststhatcanberecovered,otherexpensesincurredbythecompanytoobtainthecontractshallbebookedinthegainsandprofitsofcurrentperiod.Ifthecostincurredinfulfillingacontractdoesnotfallwithinthescopeofaccountingstandardsforotherenterprisessuchasinventoryandmeetsthefollowingconditionssimultaneously,thecompanyrecognizesitasacontractperformancecostasanasset:

①Thecostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),costsclearlybornebythecustomer,andothercostsincurredsolelyduetothecontract;

②Thiscostincreasestheresourcesthatthecompanywilluseinthefuturetofulfillitscontractualobligations;

③Thecostisexpectedtoberecovered.Theassetsrecognizedforcontractacquisitioncostsandtheassetsrecognizedforcontractperformancecosts(hereinafterreferredtoas“assetsrelatedtocontractcosts”)areamortizedonthesamebasisastherecognitionofgoodsorservicesrevenuerelatedtotheassets,andarebookedinthegainsandprofitsofcurrentperiod.Iftheamortizationperioddoesnotexceedoneyear,itshallberecognizedinthecurrentprofitandlosswhenitoccurs.Incasethebookvalueofassetsrelatedtocontractcostsexceedsthedifferencebetweenthefollowingtwoitems,thecompanymakesimpairmentprovisionsfortheexcessandrecognizesitasanassetimpairmentloss:

①Theexpectedremainingconsiderationthatthecompanycanobtainforthetransferofgoodsorservicesrelatedtotheasset;

②Theestimatedcosttobeincurredforthetransferoftherelevantgoodsorservices.

39.GovernmentgrantGovernmentgrantisrecognizedwhentheymeettheconditionsattachedtogovernmentgrantsandcanbereceived.

Governmentgrantasmonetaryassetsshallbemeasuredattheamountreceivedorreceivable.Thegovernmentgrantsasnon-monetaryassetsshallbemeasuredatfairvalue;Ifthefairvaluecannotbereliablyobtained,itshallbemeasuredatanominalamountof1yuan.Asset-relatedgovernmentsubsidiesrefertogovernmentgrantsobtainedbythecompanyforthepurchase,construction,orotherformationoflong-termassets;Othersareincome-relatedgovernmentgrants.Forthosewhosetargetsarenotclearlyspecifiedingovernmentdocumentsandformlong-termassets,thegovernmentgrantcorrespondingtotheassetvalueshallberegardedasasset-relatedgovernmentgrants,andtheremainingpartshallberegardedasincome-relatedgovernmentgrants;Incaseitisdifficulttomakedistinguishing,thegovernmentgrantsasawholeshallberegardedasincome-relatedgovernmentgrants.Asset-relatedgovernmentgrantsarerecognizedasdeferredincomeandbookedingainsandlossesinareasonableandsystematicmannerovertheusefullifeoftherelevantassets.Income-relatedgovernmentsubsidieswhichareusedtocompensaterelatedcostsorlossesthathavealreadyoccurred,shallbeincludedinthegainsandprofitsofcurrentperiod;Theincome-relatedgovernmentsubsidieswhichareusedtocompensaterelatedcostsorlossesinfutureperiodsshallberecognizedindeferredincomeandrecognizedingainsandlossesofcurrentperiodduringtherecognitionperiodofrelatedcostsorlosses.Governmentgrantsmeasuredatnominalamountsaredirectlyrecognizedinthegainsandprofitsofcurrentperiod.Thecompanyadoptsaconsistentapproachforhandlingthesameorsimilargovernmentsubsidybusinesses.Governmentgrantsrelatedtodailyactivitiesarerecognizedinotherincomebasedontheessenceofeconomictransactions.Governmentsubsidiesunrelatedtodailyactivitiesareincludedinnon-operatingincome.Whenrecognizedgovernmentsubsidiesneedtobereturned,incasethebookvalueoftherelevantassetsisoffsetattheinitialrecognition,thebookvalueoftheassetsshallbeadjusted;Ifthereisabalanceofrelateddeferredincome,itshalloffsetthebookbalanceofrelateddeferredincome,andtheexcessshallberecognizedinthegainsandprofitsofcurrentperiod;Inothersituations,itshallbedirectlyincludedinthegainsandprofitsofcurrentperiod.Forthepolicypreferentialloansandinterestsubsidiesobtainedbythecompany,incasethefinancedepartmentallocatesinterestsubsidytothelendingbank,thecompanywillusetheactualreceivedloanamountasthebookvalueoftheloan,andcalculatetherelevantloancostsbasedontheloanprincipalandthepolicypreferentialinterestrate,incasethefinancedepartmentdirectlyallocatesinterestsubsidytothecompany,thecompanywilloffsettherelevantborrowingcostswiththecorrespondinginterestsubsidy.

40.Deferredincometaxassets/deferredincometaxliabilities

Incometaxincludescurrentincometaxanddeferredincometax.Exceptforadjustmentstogoodwillarisingfromenterprisemergeordeferredincometaxrelatedtotransactionsoreventsdirectlyrecognizedinshareholders’equity,theyareallrecognizedasincometaxexpensesingainsandlossesofcurrentperiod.Thedeferredincometaxisrecognizedwiththebalancesheetliabilitymethodandintermsofthetemporarydifferencebetweenthebookvalueofassetsandliabilitiesonthebalancesheetdateandthetaxbasis.Alltaxabletemporarydifferencesarerecognizedasrelateddeferredincometaxliabilities,unlessthetaxabletemporarydifferencesariseinthefollowingtransactions:

(1)Theinitialrecognitionofgoodwill,ortheinitialrecognitionofassetsorliabilitiesarisingfromtransactionswiththefollowingcharacteristics:thetransactionisnotabusinessmergeranddoesnotaffectaccountingprofitsortaxableincomeatthetimeofthetransaction(exceptforindividualtransactionswheretheinitiallyrecognizedassetsandliabilitiesresultinequaltaxabletemporarydifferencesanddeductibletemporarydifferences);

(2)Fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,jointventures,andassociatedenterprises,thetimingofthereversalofsuchtemporarydifferencescanbecontrolledanditislikelythattheywillnotbereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesthatcanbecarriedforwardtofutureyears,andtaxdeductions,thecompanyrecognizesdeferredtaxassetsarisingfromthemtotheextentoffuturetaxableincomethatislikelytobeobtainedforoffsettingdeductibletemporarydifferences,deductiblelosses,andtaxdeductions,unlessthedeductibletemporarydifferencesariseinthefollowingtransactions:

1)Thistransactionisnotaenterprisemerger,anditdoesnotaffectaccountingprofitsortaxableincomeatthetimeoftransaction

(exceptforindividualtransactionswhereinitiallyrecognizedassetsandliabilitiesresultinequaltaxabletemporarydifferencesanddeductibletemporarydifferences);

2)Fordeductibletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,jointventures,andassociatedenterprises,ifthefollowingconditionsaremetsimultaneously,thecorrespondingdeferredincometaxassetsshallberecognized:temporarydifferencesarelikelytobereversedintheforeseeablefuture,andtaxableincomethatcanbeusedtooffsetdeductibletemporarydifferencesislikelytobeobtainedinthefuture.Onthebalancesheetdate,thecompanymeasuresdeferredincometaxassetsandliabilitiesattheapplicabletaxrateduringtheexpectedperiodofassetrecoveryorliabilitysettlement,andreflectstheincometaximpactoftheexpectedmethodofassetrecoveryorliabilitysettlementonthebalancesheetdate.Onthebalancesheetdate,thecompanyreviewsthebookvalueofdeferredincometaxassets.Ifitislikelythatsufficienttaxableincomewillnotbeobtainedinthefutureperiodtooffsetthebenefitsofdeferredincometaxassets,thebookvalueofdeferredincometaxassetsshallbewrittendown.Whenitishighlypossibletoobtainsufficienttaxableincome,thewrittendownamountshallbereversed.Onthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesarepresentedatthenetamountafteroffsettingwhentheysimultaneouslymeetthefollowingconditions:

1)Thetaxpayerwithinthecompanyhasthelegalrighttosettlecurrentincometaxassetsandcurrentincometaxliabilitiesona

netbasis;

2)Deferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtotheincometaxleviedbythesametax

administrationdepartmentonthesametaxpayerwithinthecompany.

41.Leasing

(1)ThecompanyaslesseeOnthecommencementdateoftheleaseterm,theCompanyrecognizestheright-of-useassetsandleaseliabilitiesforallleases,exceptforsimplifiedshort-termleaseandlowvalueassetlease.Theinitialmeasurementofleaseliabilitiesisbasedonthepresentvalueofleasepaymentsthathavenotbeenpaidonthestartdateoftheleaseterm,calculatedusingtheimplicitinterestrateofthelease.Iftheimplicitinterestrateoftheleasecannotbedetermined,theincrementalborrowingrateisusedasthediscountrate.Theleasepaymentamountincludesfixedpaymentamountandsubstantialfixedpaymentamount.Ifthereisaleaseincentive,therelevantamountoftheleaseincentiveshallbededucted;Variableleasepaymentsdependingonindexorratio;Theexercisepriceofthepurchaseoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;Theamounttobepaidforexercisingtheoptiontoterminatethelease,providedthattheleasetermreflectsthatthelesseewillexercisetheoptiontoterminatethelease;Andtheexpectedamounttobepaidbasedontheresidualvalueoftheguaranteeprovidedbythelessee.Subsequently,theinterestexpenseoftheleaseliabilityforeachperiodoftheleasetermshall

becalculatedatafixedperiodicinterestrateandincludedinthecurrentprofitandloss.Variableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesarerecognizedinthegainsandprofitsofcurrentperiodwhentheyareactuallyincurred.ShorttermleasingShorttermleasereferstoaleasewithaleasetermnotexceeding12monthsfromthestartdateoftheleaseterm,excludingleaseswithpurchaseoptions.Thecompanywillrecognizetheleasepaymentsforshort-termleasesintherelevantassetcostsorcurrentprofitandlosswiththestraight-linemethodduringeachperiodoftheleaseterm.Forshort-termleasing,thecompanyadoptsthesimplifiedtreatmentmethodmentionedabovefortheitemsthatmeettheshort-termleasingconditionsinthefollowingassettypesaccordingtothecategoryofleasedassets.LowvalueassetleasingThelowvalueassetleasingreferstoleasingwithlowervaluewhenasingleleasedassetisabrandnewasset.Thecompanywillrecordtheleasepaymentsforlowvalueassetleasesintherelevantassetcostsorcurrentprofitandlosswiththestraight-linemethodduringeachperiodoftheleaseterm.Forlowvalueassetleasing,thecompanychoosestoadoptthesimplifiedtreatmentmethodmentionedabovebasedonthespecificsituationofeachlease.LeasechangeIfthereisachangeinleaseandthefollowingconditionsaremetsimultaneously,thecompanywilltreattheleasechangeasaseparateleaseforaccountingtreatment:

①Theleasechangeexpandstheleasescopebyaddingtherighttouseoneormoreleasedassets;②Theincreasedconsiderationisequivalenttotheindividualpricefortheexpansionoftheleasescope,adjustedaccordingtothesituationofthecontract.Iftheleasechangeisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasechange,theCompanyshallreallocatetheconsiderationofthecontractafterthechange,redeterminetheleaseterm,andremeasuretheleaseliabilitybasedonthepresentvalueoftheleasepaymentamountafterthechangeandthereviseddiscountrate.Iftheleasechangeresultsinareductionintheleasescopeorleaseterm,thecompanyshalladjustthebookvalueoftheright-of-useassetsaccordingly,andrecordtherelevantgainsorlossesfrompartialorcompleteterminationoftheleaseinthegainsandprofitsofcurrentperiod.Ifotherleasechangesresultintheremeasurementofleaseliabilities,theCompanyshalladjustthebookvalueoftherightofuseassetsaccordingly.

(2)ThecompanyasalessorWhenthecompanyactsasthelessor,leasesthathavesubstantiallytransferredallrisksandrewardsrelatedtoassetownershiparerecognizedasfinancingleases,whileleasesotherthanfinancingleasesarerecognizedasoperatingleases.FinanceleaseInfinancialleasing,atthebeginningoftheleaseterm,thecompanyusesthenetleaseinvestmentasthebookvalueofthereceivablefinancingleasepayments.Thenetleaseinvestmentisthesumoftheunguaranteedresidualvalueandthepresentvalueoftheleasepaymentsthathavenotyetbeenreceivedonthestartdateoftheleasetermdiscountedattheimplicitinterestrateofthelease.the

company,asthelessor,calculatesandrecognizesinterestincomeforeachperiodoftheleasetermatafixedperiodicinterestrate.Thevariableleasepaymentsobtainedbythecompanyasthelessor,whicharenotincludedinthenetleaseinvestmentmeasurement,arerecognizedinthegainsandprofitsofcurrentperiodwhenactuallyincurred.ThederecognitionandimpairmentofreceivablefinancingleasepaymentsshallbeaccountedforinaccordancewiththeprovisionsofAccountingStandardsforEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandAccountingStandardsforEnterprisesNo.23-TransferofFinancialAssets.OperatingleaseTherentofoperatingleasesisrecognizedinthegainsandprofitsofcurrentperiodusingthestraight-linemethodforeachperiodduringtheleaseterm.Theinitialdirectexpensesrelatedtooperatingleasesshallbecapitalized,amortizedovertheleasetermonthesamebasisasrentalincomerecognition,andrecognizedinthegainsandprofitsofcurrentperiodininstallments.Thevariableleasepaymentsrelatedtooperatingleasesthatarenotincludedintheleaseincomearerecognizedinthegainsandprofitsofcurrentperiodwhenactuallyincurred.LeasechangeIfthereisachangeintheoperatinglease,thecompanywilltreatitasanewleaseforaccountingtreatmentfromtheeffectivedateofthechange.Theprepaidorreceivableleasepaymentsrelatedtotheleasebeforethechangeareconsideredasthenewleasepayments.Ifthereisachangeinfinancingleaseandthefollowingconditionsaremetsimultaneously,thecompanywilltreatthechangeasaseparateleaseforaccountingtreatment:①Thechangeexpandstheleasescopebyaddingtherighttouseoneormoreleasedassets;②Theincreasedconsiderationisequivalenttotheindividualpricefortheexpansionoftheleasescope,adjustedaccordingtothesituationofthecontract.Ifthereisachangeinfinancingleasethathasnotbeenaccountedforasaseparatelease,theCompanywilltreatthechangedleaseasfollows:①Ifthechangetakeseffectontheleasecommencementdate,theleasewillbeclassifiedasanoperatinglease.TheCompanywilltreatitasanewleasefromtheeffectivedateoftheleasechangeandusethenetleaseinvestmentbeforetheeffectivedateoftheleasechangeasthebookvalueoftheleasedasset;②Ifthechangetakeseffectonthecommencementdateofthelease,theleasewillbeclassifiedasafinancinglease,andthecompanywillconductaccountingtreatmentinaccordancewiththeprovisionsoftheAccountingStandardsforEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsregardingthemodificationorrenegotiationofcontracts.

42.Otherimportantaccountingpolicyandestimation

43.Changesofimportantaccountingpolicyandestimation

(1)Changesofimportantaccountingpolicies?Applicable?Notapplicable

(2)Changesofimportantaccountingestimation

□Applicable?Notapplicable

(3)Implementationofnewaccountingstandardsadjustmentforthefirsttimestartingfrom2025,andimplementationofrelevantfinancialstatementitemsatthebeginningoftheyearforthefirsttime?Applicable?Notapplicable

44.OthersVI.Tax

1.Typeoftaxandrateformainapplicabletax

Rateofincometaxfordifferenttaxpayingbody:

2.Preferentialtaxation

(1)VATdiscountsandapprovalAccordingtothe“NoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationontheIssuesConcerningtheVATCollectionandExemptionofGrainEnterprises(CSZ[1999]No.198)”and“ShenzhenTaxService,StateTaxationAdministrationandShenzhenFinanceBureauSGSF(SCF[1999]No.428)”,confirmingthatSZCG,theCompany’ssubsidiary,anditssubsidiaries,arestate-ownedgrainpurchaseandsaleenterprisesthatundertakegraincollectionandstoragetasksforShenzhen,thegrainsoldissubjecttotax-freedeclarationbyruleandenjoystheexemptionfromVAT.Inaddition,accordingtothestipulationofthe“AnnouncementofStateAdministrationofTaxationonRelevantManagementMattersAfterClarifyingtheCancellationoftheApprovalofSomeVATPreferentialPolicies”(SATAnnouncement2015No.38),theapprovalforexemptionfromVATandtheinvolvedtaxreviewandapprovalproceduresforthestate-ownedgrainenterprisesthatundertakegraincollectionandstoragetasks,othergrainenterprisesthatoperatetax-freeprojectsandenterprisesthathaveediblevegetableoilsalesbusinessforgovernmentreservesarecanceledandchangedtorecordmanagement.Thetaxpayerdoesnotchangethecontentoftherecordmaterialsduringtheperiodoftaxexemptioncanbeputonaone-timerecord.InDecember2013,SZCGobtainedthenoticeoftheVATpreferentialrecord(SGSFJBM[2013]No.2956)fromShenzhenFutianStateAdministrationofTaxation.Inthecaseofnochangeinpolicy,thislimitedfilingperiodstartedonJanuary1,2014.TheVATinputtaxamountofthepreferentialitemwasseparatelyaccountedfor,andtheinputVATcalculationmethodcannotbechangedwithin36monthsaftertheselection.AsofJune30,2025,thetaxexemptionpolicyhasbeenineffectsinceitsfilingin2014,andthecompany’sVATinputtaxhasnotchangedsinceitwasaccountedforseparatelyin2014,sothecompanycontinuestoenjoythetaxpreference.

(2)Stampduty,housepropertytax,andurbanlandusetaxpreferences

AccordingtothestipulationsoftheAnnouncementonContinuingtheImplementationofTaxPreferentialPoliciesforSomeNationalReserveCommodityReserves([2023]No.48),confirmingthatthefundaccountbookofSZCG,theCompany’ssubsidiary,anditsdirectdepotsisexemptfromstampduty,confirmingthatthewrittenpurchaseandsalecontractsofSZCGintheprocessofundertakingthecommodityreservebusinessareexemptfromstampduty,andconfirmingthatSZCG’shousepropertyandlandusedforthecommodityreservebusinessareexemptfromhousepropertytaxandurbanlandusetax.TheexecutiontimelimitforthistaxpreferencepolicyisfromJanuary1,2024toDecember31,2027.

(3)Enterpriseincometax

1)OnMay27,2021,theGgeneralAadministrationofTaxation,MinistryofFinanceissuedtheNoticeontheExtensionofPreferentialPoliciesofEnterpriseIncomeTaxofQianhaiShenzhen-HongKongModernServiceIndustryCooperationZoneinShenzhen,theenterpriseincometaxofqualifiedenterpriseslocatedinQianhaiShenzhen-HongKongModernServiceIndustryCooperationZoneisleviedattherateof15.00%,andtheNoticetobeimplementedfromJanuary1,2021toDecember31,2025.TheCompany'ssubsidiarycoldchainlogisticsisregisteredinShenzhenQianhaiCooperationZone,whichiseligibleforpreferentialtaxconditions.Accordingtorelevantpoliciesofthecooperationzone,itsincometaxwillenjoyapreferentialtaxof15.00%.

2)OnDecember23,2021,ShenbaoHuacheng,asubsidiaryoftheCompany,obtainedtheHigh-techEnterpriseCertificate

(CertificateNo.:GR202444206671)jointlyissuedbytheShenzhenMunicipalBureauofIndustryandInformationTechnology,theShenzhenFinanceBureau,andtheShenzhenTaxService,StateTaxationAdministration,whichisvalidforthreeyears.Accordingtotherelevantpreferentialpoliciesofthestateforhigh-techenterprises,thequalifiedhigh-techenterpriseswillpaycorporateincometaxatareducedincometaxrateof15.00%withinthreeyearsfromtheyearofidentification.ShenbaoHuachengwillenjoythepreferentialtaxpolicyfrom2025to2027.

3)OnNovember3,2024,WuyuanJuFangYong,asubsidiaryoftheCompany,obtainedtheHigh-techEnterpriseCertificate

(CertificateNo.:GR202436001138)jointlyissuedbytheScienceandTechnologyDepartmentofJiangxiProvince,theFinanceDepartmentofJiangxiProvince,andtheJiangxiProvincialTaxService,StateTaxationAdministration,whichisvalidforthreeyears.Accordingtotherelevantpreferentialpoliciesofthestateforhigh-techenterprises,qualifiedhigh-techenterpriseswillpaycorporateincometaxatareducedincometaxrateof15.00%withinthreeyearsfromtheyearofidentification.WuyuanJuFangYongwillenjoythepreferentialtaxpolicyfrom2025to2027.

4)AccordingtotheNoticeoftheMinistryofFinanceandtheStateTaxationAdministrationontheTreatmentofCorporate

IncomeTaxTreatmentofFiscalFundsforSpecialPurposes(CS[2009]No.87),thegovernmentalserviceincomesobtainedbySZCG,theCompany’ssubsidiary,anditssubordinatecompaniesbycarryingoutgovernmentgrainreservesbusinessarefiscalfundsforspecialpurposes,thosethatmeettherequirementscanberegardedasnon-taxableincomesanddeductedfromthetotalincomewhencalculatingthetaxableincome.Expensesarisingfromtheuseoftheabovenon-taxableincomeforexpenditureshallnotbedeductedfromthecalculationoftaxableincome;forassetsformedfromexpenditure,thecalculateddepreciationandamortizationshallnotbedeductedfromthecalculationoftaxableincome.

5)ShenzhenFlour,asubsidiaryoftheCompany,isaflourprimaryprocessingenterprise,accordingtothestipulationsofthe

“NoticeonIssuingtheScope(Trial)ofPrimaryProcessingofAgriculturalProductsApplicabletotheCorporateIncomeTaxPreferentialPolicy(CS[2008]No.149)”andthe“SupplementaryNoticeontheScopeofPrimaryProcessingofAgriculturalProductsApplicabletotheCorporateIncomeTaxPreferentialPolicyoftheMinistryofFinanceandtheStateAdministrationofTaxation”(CS[2011]No.26),thewheatprimaryprocessingisexemptfromincometax.

6)AccordingtotheprovisionsoftheAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonRelevantTaxPoliciestoFurtherSupporttheDevelopmentofSmallandMicro-sizedEnterprisesandIndividualIndustrialandCommercialHouseholds(CZBSHZJ[2023]No.12),thepolicyofreducingthetaxableincomeofsmallandmicro-profitable

enterprisesby25%andlevyingenterpriseincometaxatarateof20%shallbeextendeduntilDecember31,2027.Thecompany’ssubsidiaryHainanGrainandOil,ShenliangProperty,ShenliangQualityInspection,HuizhouShenliangandIntelligentStorage,aresmallandmicro-profitableenterprisesandmeettheconditionsfortaxpreferentialtreatment.

3.Other

VII.Notestomainitemsofconsolidatedfinancialstatements

1.Monetaryfunds

InRMB

Otherexplanations:

2.Tradablefinancialassets

InRMB

Otherexplanation:

3.Derivativefinancialassets

InRMB

Otherexplanation:

4.Notereceivable

(1)Bycategory

InRMB

(2)Accruedbaddebtsreserve

InRMB

Ifthebaddebtsreserveofaccountreceivableismadeonthebasisofthegeneralmodelofexpectedcreditlosses:

□Applicable?Notapplicable

(3)Baddebtsreserveaccrual,recoveredorreversedintheperiod

Baddebtsreserveaccrualintheperiod:

InRMB

Accrual

Includingmajoramountbaddebtsreservethatrecoveredorreversedintheperiod:

□Applicable?Notapplicable

(4)NotesreceivablealreadypledgedbytheCompanyattheendoftheperiod

InRMB

(5)Notesendorsedordiscountedandundueonbalancesheetdate

(6)Notereceivablechargedoffintheperiod

InRMB

Includingmajornotereceivablechargedoff:

InRMB

Explanationonnotereceivablechargedoff:

5.Accountreceivable

(1)Byaging

InRMB

(2)Accruedbaddebtsreserve

InRMB

Baddebtsreserveaccrualonsinglebasis

InRMB

Baddebtsreserveaccrualonportfolio

InRMB

Explanationonthebasisfordeterminingportfolio:

Baddebtsreserveaccrualonportfolio:

InRMB

Explanationonthebasisfordeterminingportfolio:

Ifthebaddebtsreserveofaccountreceivableismadeinaccordancewiththegeneralmodelofexpectedcreditlosses:

□Applicable?Notapplicable

(3)Baddebtsreserveaccrued,recoveredorreversed

Baddebtsreserveaccruedintheperiod:

InRMB

Importantbaddebtsreserverecoveredorreversed:

InRMB

(4)Accountreceivablechargedoffintheperiod

InRMB

Includingmajoraccountreceivablechargedoff:

InRMB

Explanationonaccountreceivablechargedoff:

(5)Top5receivablesandcontractassetsatendingbalancebydebtor

InRMB

6.Contractasset

(1)Contractasset

InRMB

(2)Amountandreasonsforsignificantchangesinbookvalueduringthereportingperiod

InRMB

(3)Accruedbaddebtsreserve

InRMB

Ifthebaddebtsreserveofaccountreceivableismadeonthebasisofthegeneralmodelofexpectedcreditlosses:

□Applicable?Notapplicable

(4)Baddebtsreserveaccrued,recoveredorreversed

InRMB

Importantbaddebtsreserverecoveredorreversed:

InRMB

Otherexplanation:

(5)Contractassetschargedoffduringthereportingperiod

InRMB

Includingmajorcontractassetschargedoff:

InRMB

Explanationoncontractassetschargedoff:

Otherexplanation:

7.Accountreceivablefinancing

(1)Categoryofaccountreceivablefinancing

InRMB

(2)Accruedbaddebtsreserve

InRMB

Thebaddebtsreserveofaccountreceivableismadeonthebasisofthegeneralmodelofexpectedcreditlosses:

InRMB

ClassificationbasisandaccrualratioofbaddebtsreserveforeachstageExplanationonsignificantchangesinthebookbalanceofaccountsreceivablefinancingwithchangesinimpairmentprovisioninthecurrentperiod:

(3)Baddebtsreserveaccrued,recoveredorreversed

InRMB

BalanceonJan.1,2025intheperiod

Category

Importantbaddebtsreserverecoveredorreversed

InRMB

Otherexplanation:

(4)AccountreceivablefinancingalreadypledgedbytheCompanyatperiod-end

InRMB

(5)Accountreceivablefinancingendorsedordiscountedandundueonbalancesheetdate

InRMB

(6)Accountreceivablefinancingchargedoffintheperiod

InRMB

Includingimportantaccountreceivablefinancingchargedoff:

InRMB

Explanationonaccountreceivablefinancingchargedoff:

(7)Changesofaccountreceivablefinancingandchangeoffairvalueintheperiod

(8)Otherexplanation

8.Otheraccountsreceivable

InRMB

(1)Interestreceivable

1)Categoryofinterestreceivable

InRMB

2)Significantoverdueinterest

InRMB

Otherexplanation:

3)Accruedbaddebtsreserve

□Applicable?Notapplicable

4)Baddebtsreserveaccrued,recoveredorreversed

InRMB

Importantbaddebtsreserverecoveredorreversed:

InRMB

Otherexplanation:

5)Interestreceivablechargedoffintheperiod

InRMB

Includingimportantinterestreceivablechargedoff:

InRMB

Explanationoninterestreceivablechargedoff:

Otherexplanations:

(2)Dividendsreceivable

1)Categoryofdividendsreceivable

InRMB

2)Significantdividendsreceivablewithagingoveroneyear

InRMB

3)Accruedbaddebtsreserve

□Applicable?Notapplicable

4)Baddebtsreserveaccrued,recoveredorreversed

InRMB

Importantbaddebtsreserverecoveredorreversed:

InRMB

Otherexplanation:

5)Dividendsreceivablechargedoffintheperiod

InRMB

Includingmajordividendsreceivablechargedoff:

InRMB

Explanationondividendsreceivablechargedoff:

Otherexplanation:

(3)Otheraccountsreceivable

1)Bynature

InRMB

2)Byaging

InRMB

3)Accruedbaddebtsreserve?Applicable□Notapplicable

InRMB

Total

Baddebtsreserveaccrualonsinglebasis

InRMB

Total

Category

Baddebtsreserveaccrualonportfolioofexpectedcreditloss

InRMB

Explanationonthebasistodeterminesuchportfolio：

Baddebtsreserveaccrualonobject-specificportfolio

InRMB

Explanationonthebasistodeterminesuchportfolio:

：

Ifthebaddebtsreserveofaccountreceivableismadeonthebasisofthegeneralmodelofexpectedcreditlosses:

InRMB

ClassificationbasisandbaddebtsreserveratioforeachstageChangesinbookbalancewithsignificantchangesinimpairmentprovisioninthecurrentperiod

□Applicable?Notapplicable

4)Baddebtsreserveaccrued,recoveredorreversed

Baddebtsreserveaccruedintheperiod:

InRMB

Importantbaddebtsreserverecoveredorreversed:

InRMB

5)Otheraccountsreceivablechargedoffintheperiod

InRMB

Includingmajorotheraccountreceivablechargedoff:

InRMB

Explanationonotheraccountreceivablechargedoff:

6)Top5otheraccountsreceivableatendingbalancebydebtors

InRMB

7)Thosebookedintootheraccountreceivablesduetocentralizedfundmanagement

InRMBOtherexplanation:

9.Accountpaidinadvance

(1)Byaging

InRMB

Explanationonreasonsfornottimelysettlingimportantaccountpaidinadvancewithagingoveroneyear:

(2)Top5accountspaidinadvanceatendingbalancebyprepaymentobject

Otherexplanation:

10.Inventory

WhethertheCompanyneedstocomplywiththedisclosurerequirementsoftherealestateindustryornot?No

(1)Bycategory

InRMB

(2)Dataresourcerecognizedasinventory

Intotal

(3)Inventoriesfallprovisionorimpairmentprovisionofcontractperformancecosts

InRMB

Inventoriesfallprovisionaccrualonportfolio

InRMB

Standardforinventoriesfallprovisionaccrualonportfolio

(4)Explanationonthecapitalizedamountofborrowingcostsincludedintheendingbalanceofinventory

(5)Explanationonthecurrentamortizationamountofcontractperformancecosts

11.Assetsheldforsale

InRMB

Otherexplanation:

12.Non-currentassetduewithinoneyear

InRMB

(1)Creditors’investmentmaturingwithinoneyear

□Applicable?Notapplicable

(2)Othercreditors’investmentmaturingwithinoneyear

□Applicable?Notapplicable

13.Othercurrentassets

InRMB

Otherexplanation:

14.Creditors’investment

(1)Creditors’investment

InRMB

Changesofimpairmentprovisionofcreditors’investmentincurrentperiod

InRMB

(2)Importantcreditors’investmentatyear-end

InRMB

(3)Accrualofimpairmentprovision

InRMB

Classificationbasisandaccrualratioofbaddebtsreserveforeachstage

(4)Creditors’investmentchargedoffintheperiod

InRMB

Includingimportantcreditors’investmentchargedoff:

Explanationoncreditors’investmentchargedoff:

Changesinbookbalancewithsignificantchangesinthecurrentperiod'simpairmentprovision

□Applicable?NotapplicableOtherexplanation:

15.Othercreditors’investment

(1)Othercreditors’investment

InRMB

Changesinimpairmentprovisionofothercreditors’investmentsinthecurrentperiod

InRMB

(2)Othercreditors’investmentatyear-end`

InRMB

(3)Accrualofimpairmentprovision

InRMB

Classificationbasisandaccrualratioofbaddebtsreserveforeachstage

(4)Othercreditors’investmentchargedoffintheperiod

InRMB

Includingmajorothercreditors’investmentchargedoff:

Explanationonothercreditors’investmentchargedoff:

Changesinbookbalancewithsignificantchangesinthecurrentperiod'simpairmentprovision

□Applicable?NotapplicableOtherexplanation:

16.Otherequityinstrumentinvestment

InRMB

Equityinstrumentinvestmentderecognizedincurrentperiod

InRMB

income

Itemname

Sub-itemdisclosureofcurrentnon-tradableequityinstrumentinvestments

InRMB

Otherexplanation:

17.Long-termaccountreceivable

(1)Long-termaccountreceivable

InRMB

(2)Accruedbaddebtsreserve

InRMB

Baddebtreserveaccrualonralmodelofexpectedcreditlosses

InRMB

Classificationbasisandaccrualratioofbaddebtsreserveforeachstage

(3)Baddebtsreserveaccrued,recoveredorreversed

InRMB

Importantbaddebtsreserverecoveredorreversed:

InRMB

Otherexplanation:

(4)Long-termaccountreceivablechargedoffintheperiod

InRMB

Includingmajorlong-termaccountreceivablechargedoff:

InRMB

Explanationonlong-termaccountreceivablechargedoff:

18.Long-termequipment

InRMB

Subtotal

Therecoverableamountisdeterminedonthebasisofthenetamountafterdeductingdisposalexpensesfromfairvalue

□Applicable?NotapplicableTherecoverableamountisdeterminedonthebasisofthepresentvalueofexpectedfuturecashflows

□Applicable?NotapplicableReasonsforsignificantdiscrepanciesbetweentheaforementionedinformationandtheinformationorexternalinformationusedinpreviousyears'impairmenttestingReasonsforsignificantdiscrepanciesbetweentheinformationusedinthecompany'spreviousannualimpairmenttestsandtheactualsituationofthecurrentyearOtherexplanation:

19.Othernon-currentfinancialassets

InRMB

Otherexplanation:

20.Investmentrealestate

(1)Measuredatcost

?Applicable□Notapplicable

InRMB

3.Currentamountdecreased

4.Endingbalance

3.Currentamountdecreased

4.Endingbalance

3.Currentamountdecreased

(2)Othertransfer-out

4.Endingbalance

Therecoverableamountisdeterminedonthebasisofthenetamountafterdeductingdisposalexpensesfromfairvalue

□Applicable?NotapplicableTherecoverableamountisdeterminedonthebasisofthepresentvalueofexpectedfuturecashflows

□Applicable?NotapplicableReasonsforsignificantdiscrepanciesbetweentheaforementionedinformationandtheinformationorexternalinformationusedinpreviousyears'impairmenttestingReasonsforsignificantdiscrepanciesbetweentheinformationusedinthecompany'spreviousannualimpairmenttestsandtheactualsituationofthecurrentyearOtherexplanation:

(2)Measuredatfairvalue

□Applicable?Notapplicable

(3)Convertedtoinvestmentrealestateandmeasuredatfairvalue

InRMB

(4)Investmentrealestatewithoutpropertycertificatecompleted

InRMB

Otherexplanation:

21.Fixedassets

InRMB

(1)Fixedassets

InRMB

3.Currentamountdecreased

3.Currentamountdecreased

3.Currentamountdecreased