CONSOLIDATEDFINANCIALSTATEMENTS

ANDREPORTOFTHEAUDITORSHainanJingliangHoldingsCo.,LTD.

FORTHEYEARENDED31DECEMBER,2025TianYuanQuanCertifiedPublicAccountants[2026]AuditNo.000250

TianyuanquanCertifiedPublicAccountants(SpecialGeneralPartnership)AuditReport

TYQCPAPage

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Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB Yuan

ItemsNotePeriod-end balanceBalance at the end of the previous yearCurrent Assets:

Monetary capitalV.11,821,722,517.081,417,025,694.30Transactional financial assetsDerivative financial assetsV.270,947,839.67Notes receivableAccounts receivableV.398,216,373.7191,439,895.13Receivables financingPrepaymentV.4574,410,843.60198,722,011.47Other receivablesV.5173,257,419.17455,148,011.66Including: Interest receivable Dividends receivableInventoryV.61,421,929,091.402,357,805,420.92Including: Data resourcesContract assetsHeld-for-sale assetsNon-current assets due within one yearV.710,694,166.66Other current assetsV.899,250,439.60161,383,945.34Total current assets4,188,786,684.564,763,166,985.15Non-current assets:

Debt investmentOther debt investmentsLong-term receivablesLong-term equity investmentV.9267,272,969.32267,505,468.02Other equity instruments investmentOther non-current financial assetsInvestment propertyV.1016,252,551.5418,277,387.65Fixed assetsV.11841,479,812.89891,221,864.74Construction in processV.1288,960,509.1050,058,378.98Productive biological assetsOil-and-gas assetsRight-of-use assetsV.13169,826,775.5076,970,493.53Intangible assetsV.14370,583,609.88395,680,430.82Including: Data resources

Development expenditureIncluding: Data resourcesGoodwillV.15125,632,393.35191,394,422.51Long-term deferred expensesV.163,362,646.8417,403,238.18Deferred income tax assetsV.1736,843,176.2523,598,603.98Other non-current assetsV.189,281,092.225,682,032.40Total non-current assets1,929,495,536.891,937,792,320.81

Total assets6,118,282,221.456,700,959,305.96Legal Representative： Chief Financial Officer: Head of Accounting Department:

Consolidated Balance Sheet

2025-12-31

Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB Yuan

Consolidated Balance Sheet

2025-12-31ItemsNotePeriod-end balanceBalance at the end of the previous yearCurrent liabilities:

Short-term borrowingsV.201,136,260,975.851,311,609,177.78Transactional financial liabilitiesDerivative financial liabilitiesV.213,815,280.0030,979,464.00Notes payableV.2256,649,763.00Accounts payableV.2366,273,857.12127,879,265.40Account collected in advanceV.241,670,875.731,122,982.13Contract liabilitiesV.25275,724,804.27522,267,254.98Employee payroll payableV.2629,353,455.8427,703,136.66Taxes payableV.2738,204,738.1819,999,374.52Other payablesV.2862,493,915.3858,529,914.31Including: Interest payable20,000,000.0020,000,000.00 Dividends payableHeld-for-sale liabilitiesNon-current liabilities due within one yearV.29376,319,750.69543,665,629.94Other current liabilitiesV.3036,800,107.1697,380,074.75Total current liabilities2,083,567,523.222,741,136,274.47Non-current liabilities:

Long-term borrowingsV.31576,500,000.00Bonds payableV.32299,250,000.00Including: Preferred stock Perpetual capital bondsLease liabilitiesV.33135,451,638.5750,700,060.93Long-term payablesLong-term payable to employeesV.345,321,134.005,627,134.00Estimated liabilitiesV.3522,650,893.155,146,800.00Deferred incomeV.3653,936,649.4756,731,497.62Deferred income tax liabilitiesV.1729,132,160.4831,415,012.33Other non-current liabilities

Total non-current liabilities822,992,475.67448,870,504.88Total liabilities2,906,559,998.893,190,006,779.35Owners' equity (or Shareholders' equity):

Paid-in capitalV.37726,950,251.00726,950,251.00Other equity instrumentsIncluding: Preferred stock Perpetual capital bondsCapital reservesV.381,683,673,958.021,683,673,958.02 Less: treasury stockOther comprehensive incomeV.391,059,574.921,763,043.44Special reservesSurplus reservesV.40144,701,147.27137,418,617.07Undistributed profitV.41307,028,112.53593,483,706.16 Owner's Equity (or shareholder's equity) Attributable toShareholders of the Parent Com

an

2,863,413,043.743,143,289,575.69Minority equity348,309,178.82367,662,950.92

Total owners' equity (or shareholders' equity)3,211,722,222.563,510,952,526.61 Total liabilities and owners' equity (or shareholders' equity)6,118,282,221.456,700,959,305.96Legal Representative： Chief Financial Officer: Head of Accounting Department:

Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB Yuan

ItemsNotePeriod-end balance

Balance at the end of the

revious

ea

Current Assets:

Monetary capital341,590,983.27343,402,502.17Transactional financial assetsDerivative financial assetsNotes receivableAccounts receivableReceivables financingPrepaymentOther receivablesXXVII.1930,000,000.00948,000,000.00Including: Interest receivable Dividends receivable18,000,000.00InventoryIncluding: Data resourcesContract assetsHeld-for-sale assetsNon-current assets due within one yearOther current assets588,414.42342,287.50

Total current assets1,272,179,397.691,291,744,789.67Non-current assets:

Debt investmentOther debt investmentsLong-term receivablesLong-term equity investmentXXVII.22,442,399,283.192,340,799,283.19Other equity instruments investmentOther non-current financial assetsInvestment property4,520,056.974,858,318.61Fixed assets4,841,558.755,533,490.67Construction in processProductive biological assetsOil-and-gas assetsRight-of-use assetsIntangible assets Including: Data resourcesDevelopment expenditure Including: Data resourcesGoodwillLong-term deferred expenses290,547.43393,093.55Deferred income tax assetsOther non-current assets7,326,142.225,035,082.40

Total non-current assets2,459,377,588.562,356,619,268.42Total assets3,731,556,986.253,648,364,058.09Legal Representative： Chief Financial Officer: Head of Accounting Department:

Balance Sheet of Parent Company

2025-12-31

Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB Yuan

Balance Sheet of Parent Company

2025-12-31ItemsNotePeriod-end balance

Balance at the end of the

revious

ea

Current liabilities:

Short-term borrowingsTransactional financial liabilitiesDerivative financial liabilitiesNotes payableAccounts payable236,000.0015,383.17Account collected in advanceContract liabilitiesEmployee payroll payable150,534.39151,075.75Taxes payable105,528.5189,545.33Other payables21,383,284.4121,267,504.53Including: Interest payable20,000,000.0020,000,000.00 Dividends payableHeld-for-sale liabilitiesNon-current liabilities due within one year302,580,000.002,880,000.00Other current liabilities

Total current liabilities324,455,347.3124,403,508.78Non-current liabilities:

Long-term borrowingsBonds payable299,250,000.00Including: Preferred stock Perpetual capital bondsLease liabilitiesLong-term payablesLong-term payable to employeesEstimated liabilities22,650,893.15Deferred incomeDeferred income tax liabilitiesOther non-current liabilities

Total non-current liabilities22,650,893.15299,250,000.00Total liabilities347,106,240.46323,653,508.78Owners' equity (or Shareholders' equity):

Paid-in capital726,950,251.00726,950,251.00Other equity instrumentsIncluding: Preferred stock Perpetual capital bondsCapital reserves2,386,924,900.842,386,924,900.84 Less: treasury stock

Other comprehensive incomeSpecial reservesSurplus reserves132,065,774.68124,783,244.48Undistributed profit138,509,819.2786,052,152.99

Total owners' equity3,384,450,745.793,324,710,549.31 Total liabilities and owners' equity3,731,556,986.253,648,364,058.09Legal Representative： Chief Financial Officer: Head of Accounting Department:

Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB Yuan

ItemsNote

Amount for thecurrent

eriod

Amount for the

rior

eriod

I. Total operating incomeV.427,858,535,847.1111,434,843,516.27 Including: Operating income7,858,535,847.1111,434,843,516.27II. Total operating costV.427,983,627,943.1311,355,705,803.09 Including: Operating cost7,508,646,116.0110,914,648,084.71 Tax and surchargesV.4329,449,761.7230,945,038.63 Selling expensesV.44154,367,070.54140,518,419.42 Administration expensesV.45213,476,195.17199,231,019.64 Research and development expensesV.4619,274,443.1224,982,468.62 Financial expensesV.4758,414,356.5745,380,772.07 Including: interest expenses65,081,667.9460,492,426.83 Interest income14,028,391.8817,628,504.01 Add: Other incomeV.4814,628,099.3219,031,421.09 Income from investment (Losses shall be filled in with “-”)V.49983,910.2112,546,903.92 Including: income from investment on joint venture and cooperative enterprise-232,498.7012,546,903.92 income from derecognition of financial assets measured at amortized cost Income from net exposure hedging(Losses shall be filled in with “-”) Income from changes in fair value (Losses shall be filled in with “-”)V.50-59,953,281.42-116,999,895.87 Credit impairment loss(Losses shall be filled in with “-”)V.51-35,107,765.596,735,814.75 Income from assets impairment(Losses shall be filled in with “-”)V.52-109,096,137.70-13,819,833.62 Income from asset disposal (Losses shall be filled in with “-”)V.5314,708,222.0663,830.72III. Operating profit (Losses shall be filled in with “-”)-298,929,049.14-13,304,045.83 Add: non-operating incomeV.5414,589,622.9311,249,072.43 Less: non-operating expenditureV.5520,606,002.605,595,403.68IV. Total profit (Total losses shall be filled in with “-”)-304,945,428.81-7,650,377.08 Less: income tax expenseV.56-5,764,160.59-11,962,291.26V. Net profit (Net loss shall be filled in with “-”)-299,181,268.224,311,914.18 (I) Classified by operations continuity 1. Net profit from continuing operations (Net loss shall be filled in with “-”)-299,181,268.224,311,914.18 2. Net profit from discontinuing operations (Net loss shall be filled in with “-”) (II) Classified by ownership attribution 1、Net profit attributable to shareholders of the parent company (Net loss shall be filled in with “-”)-266,087,957.9226,130,520.86 2、Minority interest income (Net loss shall be filled in with “-”)-33,093,310.30-21,818,606.68VI. Net of tax from other comprehensive income-703,468.52393,062.52 (I)Net of tax from other comprehensive income attributable to shareholders of the parent company-703,468.52393,062.52 1.Other comprehensive income that cannot be reclassified into the profit and loss （1）Remeasure changes in defined benefit plans （2）Other comprehensive income that cannot be transferred to gains and losses under the equity method （3）Changes in fair value of other equity instrument investments （4）Changes in the fair value of the company's own credit risk （5）Others 2.Other comprehensive income that will be reclassified into the profit and loss-703,468.52393,062.52

（1）Other comprehensive income that can be transferred to gains and losses under the equity method

（2）Changes in fair value of other debt investments （3）Reclassification of financial assets included in other comprehensive income （4）Provision for credit impairment of other debt investments （5）Cash flow hedge reserve （6）Balance arising from the translation of foreign currency-703,468.52393,062.52 （7）Others （II） Net of tax from other comprehensive income attributable to minority shareholderVII. Total comprehensive income-299,884,736.744,704,976.70 (I) Total comprehensive income attributable to shareholders of the parent company-266,791,426.4426,523,583.38 (II)Total comprehensive income attributable to minority shareholder-33,093,310.30-21,818,606.68VIII. Earnings per share:

(I) Basic earnings per share-0.370.04 (II) Diluted earnings per share-0.370.04

Consolidated Income Statement

Year 2025

Legal Representative： Chief Financial Officer: Head of Accounting Department:

Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB Yuan

ItemsNote

Amount for thecurrent period

Amount for theprior periodI. Total operating incomeXXVII.32,553,338.812,448,223.41 Less：Operating costXXVII.3338,261.64340,195.56 Tax and surcharges491,128.68419,211.65 Selling expenses800.00 Administration expenses7,633,584.867,077,381.80 Research and development expenses Financial expenses7,722,795.24-6,510,160.02 Including: interest expenses9,090,000.009,090,000.00 Interest income1,357,172.4715,714,019.68 Add: Other income66,345.27619,000.43 Income from investment (Losses shall be filled in with “-”)XXVII.486,434,733.1363,700,859.50 Including: Investment income from associates and joint ventures Gains from derecognition of financial assets measured at amortized cost (lossespresented with “–”) Income from net exposure hedging(Losses shall be filled in with “-”) Income from changes in fair value (Losses shall be filled in with “-”) Credit impairment loss(Losses shall be filled in with “-”) Income from assets impairment(Losses shall be filled in with “-”) Income from asset disposal (Losses shall be filled in with “-”)II. Operating profit (Losses shall be filled in with “-”)72,867,846.7965,441,454.35Add: non-operating income10,611,984.69Less: non-operating expenditure42,544.8064,168.34III. Total profit (Total losses shall be filled in with “-”)72,825,301.9975,989,270.70Less: income tax expenseIV. Net profit (Net loss shall be filled in with “-”)72,825,301.9975,989,270.70 (I) Net profit from continuing operations (Net loss shall be filled in with “-”)72,825,301.9975,989,270.70 (II) Net profit from discontinuing operations (Net loss shall be filled in with “-”)V. Net of tax from other comprehensive income (I) Other comprehensive income that cannot be reclassified into the profit and loss 1.Remeasure changes in defined benefit plans 2. Other comprehensive income that cannot be transferred to gains and losses underthe e

uit

method 3.Changes in fair value of other equity instrument investments 4. Changes in the fair value of the company's own credit risk 5. Others (II) Other comprehensive income that will be reclassified into the profit and loss 1. Other comprehensive income that can be transferred to gains and losses under thee

uit

method 2. Changes in fair value of other debt investments 3. Reclassification of financial assets included in other comprehensive income 4. Provision for credit impairment of other debt investments 5. Cash flow hedge reserve 6. Balance arising from the translation of foreign currency 7. OthersVI. Total comprehensive income72,825,301.9975,989,270.70VII. Earnings per share (I) Basic earnings per share (II) Diluted earnings per share

Income Statement of Parent Company

Year 2025

Legal Representative： Chief Financial Officer: Head of Accounting Department:

Prepared by: Hainan Jingliang Holdings Co., Ltd.

Monetary Unit: RMB Yuan

ItemsNote

Amount for the curren

erio

Amount for the prior period

I. Cash Flows from Operating Activities:

Cash Receipts from Sales of Goods or Rendering of Services9,756,862,086.5512,599,938,049.04Tax Refund Receipts8,982,718.8713,810,514.51Other Cash Receipts Concerning Operating ActivitiesV.587,253,775,666.897,455,484,587.56 Subtotal of Cash Inflows from Operating Activities17,019,620,472.3120,069,233,151.11Cash Paid for Purchase of Goods and Accepting Services8,832,660,339.6412,272,299,857.43Cash Paid to and for Employees318,859,639.11341,197,234.02Taxes and Fees Paid107,131,194.48101,781,987.32Other Cash Paid Concerning Operating ActivitiesV.587,114,192,597.587,463,424,794.29 Subtotal of Cash Outflows from Operating Activities16,372,843,770.8120,178,703,873.06Net Cash Flows from Operating Activities646,776,701.50-109,470,721.95II. Cash Flows from Investment Activities:

Cash Receipts from Disinvestment39,781,480.0082,188,083.34Cash Receipts from Returns on Investments900,000.00156,138.88Net Cash from Disposal of Fixed Assets, Intangible Assets and OtherLon

dg

-term Assets

26,932,706.62658,029.92Net Cash Received by Disposal of Subsidiaries and Other BusinessUnitsOther Cash Receipts Concerning Investment Activities Subtotal of Cash Inflows from Investment Activities67,614,186.6283,002,252.14Cash Paid for Purchase and Construction of Fixed Assets, IntangibleAssets and Other Lon

gg

-term Assets

100,318,544.8747,507,672.28Cash Paid for InvestmentsV.5828,455,594.28Net Cash Paid for obtaining Subsidiaries and Other Business UnitsOther Cash Paid Concerning Investment Activities1,747,611.95 Subtotal of Cash Outflows from Investment Activities128,774,139.1549,255,284.23Net Cash Flows from Investment Activities-61,159,952.5333,746,967.91III. Cash Flows from Financing Activities:

Cash Receipts from Accepting Investment1,500,000.00Including: Cash Received by Subsidiaries Absorbing the Investmentfrom Minorit

gy

Shareholders

1,500,000.00Cash Receipts from Borrowings4,183,352,814.463,897,716,986.18Other Cash Receipts Concerning Financing ActivitiesV.58840,000.00 Subtotal of Cash Inflows from Financing Activities4,184,852,814.463,898,556,986.18Cash Paid for Repayment of Debts4,242,136,781.663,808,716,986.18Cash Paid for Distribution of Dividends, Profits or Repayment ofInterests

73,253,880.92128,096,325.56Including: Dividends and Profits Paid by Subsidiaries to MinorityShareholders

1,444,489.4418,346,200.00Other Cash Paid Concerning Financing ActivitiesV.5848,020,107.5315,224,400.00Subtotal of Cash Outflows from Financing Activities4,363,410,770.113,952,037,711.74Net Cash Flows from Financing Activities-178,557,955.65-53,480,725.56 IV. Exchange Rate Fluctuation Consequences on Cash and CashE

yq

uivalents

-14,267,358.65-15,914,853.58 V. Net Increase in Cash and Cash Equivalents392,791,434.67-145,119,333.18 Add: Opening Balance of Cash and Cash Equivalents1,395,519,746.771,540,639,079.95 VI. Closing Balance of Cash and Cash Equivalents1,788,311,181.441,395,519,746.77

Consolidated Cash Flow Statement

Year 2025

Legal Representative： Chief Financial Officer: Head of Accounting Department:

Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB Yuan

ItemsNote

Amount for the curren

erio

Amount for the prior period

I. Cash Flows from Operating Activities:

Cash Receipts from Sales of Goods or Rendering of Services782,063.241,745,187.40Tax Refund ReceiptsOther Cash Receipts Concerning Operating Activities26,867,165.385,058,125.87 Subtotal of Cash Inflows from Operating Activities27,649,228.626,803,313.27Cash Paid for Purchase of Goods and Accepting Services20,183.17932.98Cash Paid to and for Employees1,687,343.342,305,621.57Taxes and Fees Paid480,260.931,067,505.83Other Cash Paid Concerning Operating Activities27,942,431.856,930,232.03 Subtotal of Cash Outflows from Operating Activities30,130,219.2910,304,292.41 Net Cash Flows from Operating Activities-2,480,990.67-3,500,979.14II. Cash Flows from Investment Activities:

Cash Receipts from Disinvestment372,687,877.46Cash Receipts from Returns on Investments104,434,733.1332,455,704.26Net Cash from Disposal of Fixed Assets, Intangible Assets and OtherLon

dg

-term Assets

3,444.00Net Cash Received by Disposal of Subsidiaries and Other BusinessUnitsOther Cash Receipts Concerning Investment Activities Subtotal of Cash Inflows from Investment Activities104,434,733.13405,147,025.72Cash Paid for Purchase and Construction of Fixed Assets, IntangibleAssets and Other Lon

gg

-term Assets

2,323,959.822,573,332.40Cash Paid for Investments101,600,000.0020,000,000.00Net Cash Paid for obtaining Subsidiaries and Other Business UnitsOther Cash Paid Concerning Investment Activities Subtotal of Cash Outflows from Investment Activities103,923,959.8222,573,332.40Net Cash Flows from Investment Activities510,773.31382,573,693.32III. Cash Flows from Financing Activities:

Cash Receipts from Accepting InvestmentCash Receipts from BorrowingsOther Cash Receipts Concerning Financing Activities840,000.00 Subtotal of Cash Inflows from Financing Activities840,000.00Cash Paid for Repayment of DebtsCash Paid for Distribution of Dividends, Profits or Repayment ofInterests

21,712,061.5660,253,467.82Other Cash Paid Concerning Financing Activities Subtotal of Cash Outflows from Financing Activities21,712,061.5660,253,467.82Net Cash Flows from Financing Activities-21,712,061.56-59,413,467.82IV. Exchange Rate Fluctuation Consequences on Cash and CashE

gq

uivalentsV. Net Increase in Cash and Cash Equivalents-23,682,278.92319,659,246.36Add: Opening Balance of Cash and Cash Equivalents343,402,502.1723,743,255.81VI. Closing Balance of Cash and Cash Equivalents319,720,223.25343,402,502.17

Cash Flow Statement of Parent Company

Year 2025

Legal Representative： Chief Financial Officer: Head of Accounting Department:

Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB YuanPreferred stockPerpetual bondOthersI. Year-end balance of last year726,950,251.001,683,673,958.021,763,043.44137,418,617.07593,483,706.163,143,289,575.69367,662,950.923,510,952,526.61Add: changes in accounting policiesCorrection of prior period errorsMerger of enterprises under the same controlOtherII. Balance at beginning of current year726,950,251.001,683,673,958.021,763,043.44137,418,617.07593,483,706.163,143,289,575.69367,662,950.923,510,952,526.61III. Increases and decreases of current year

Decrease shall be filled in with “-”

-703,468.527,282,530.20-286,455,593.63-279,876,531.95-19,353,772.10-299,230,304.05(I) Total comprehensive income-703,468.52-266,087,957.92-266,791,426.44-33,093,310.30-299,884,736.74(II) Investment of shareholders and capital reduction15,545,150.0015,545,150.00

1. Common equity invested by shareholders15,545,150.0015,545,150.00

2. Capital invested by other equity instruments holders

3. The amount of shares recorded into the

shareholder's equity

4. Others

(III) Distribution of profits7,282,530.20-20,367,635.71-13,085,105.51-1,805,611.80-14,890,717.31

1. Withdrawal of surplus reserves7,282,530.20-7,282,530.20

2. Distribution to shareholders-13,085,105.51-13,085,105.51-1,805,611.80-14,890,717.31

3. Others

(IV) Inner carrying-over of shareholders' equities

1. Capital reserve converted into capital (or capital

stock)

2. Surplus public accumulation converted into capital

(or capital stock)

3. Surplus public accumulation loss remedy

4. Change in defined benefit plan carried forward to

retained earnings

5.Other comprehensive income carried forward to

retained earnings

6. Others

(V) Special reserve

1. Withdrawal for current period

2. Use for current period

(VI) OthersIV. Closing balance of current year726,950,251.001,683,673,958.021,059,574.92144,701,147.27307,028,112.532,863,413,043.74348,309,178.823,211,722,222.56Legal Representative： Chief Financial Officer: Head of Accounting Department:

Consolidated Statement of Changes in Equity

Year 2025Items

Current AmountShareholder's Equity attributable to the Parent Company

Minority equityPaid-in capital

Other equity instruments

Capital reserve

Less:

treasurystock

Othercomprehensiveincome

Special reserveSurplus reserveUndistributed profitSubtotal

Totalshareholders'equities

Prepared by: Hainan Jingliang Holdings Co., Ltd.

Preferred stockPerpetua

l bondOthersI. Year-end balance of last year726,950,251.001,681,808,108.071,369,980.92129,819,690.00627,555,511.453,167,503,541.44407,827,757.603,575,331,299.04Add: changes in accounting policiesCorrection of prior period errors989,931.26-989,931.26Merger of enterprises under the same controlOtherII. Balance at beginning of current year726,950,251.001,682,798,039.331,369,980.92129,819,690.00626,565,580.193,167,503,541.44407,827,757.603,575,331,299.04III. Increases and decreases of current year

Decrease shall be filled in with “-”

875,918.69393,062.527,598,927.07-33,081,874.03-24,213,965.75-40,164,806.68-64,378,772.43(I) Total comprehensive income393,062.5226,130,520.8626,523,583.38-21,818,606.684,704,976.70(II) Investment of shareholders and capital reduction875,918.69875,918.69875,918.69

1. Common equity invested by shareholders

2. Capital invested by other equity instruments holders

3. The amount of shares recorded into the

shareholder's equity

4. Others875,918.69875,918.69875,918.69(III) Distribution of profits7,598,927.07-59,212,394.89-51,613,467.82-18,346,200.00-69,959,667.82

1. Withdrawal of surplus reserves7,598,927.07-7,598,927.07

2. Distribution to shareholders-51,613,467.82-51,613,467.82-18,346,200.00-69,959,667.82

3. Others

(IV) Inner carrying-over of shareholders' equities

1. Capital reserve converted into capital (or capital

stock)

2. Surplus public accumulation converted into capital

(or capital stock)

3. Surplus public accumulation loss remedy

4. Change in defined benefit plan carried forward to

retained earnings

5.Other comprehensive income carried forward to

retained earnings

6. Others

(V) Special reserve

1. Withdrawal for current period

2. Use for current period

(VI) OthersIV. Closing balance of current year726,950,251.001,683,673,958.021,763,043.44137,418,617.07593,483,706.163,143,289,575.69367,662,950.923,510,952,526.61Legal Representative： Chief Financial Officer: Head of Accounting Department:

Monetary Unit: RMB YuanConsolidated Statement of Changes in Equity

Year 2025Items

Amount of Last Period

Minority equity

Totalshareholders'equitiesSubtotalPaid-in capitalOther equity instruments

Capital reserveShareholder's Equity attributable to the Parent Company

Less:

treasurystock

Othercomprehensiveincome

Special reserveSurplus reserveUndistributed profit

Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB Yuan

Preferredstoc

Perpetual

on

OthersI. Year-end balance of last year726,950,251.002,386,924,900.84124,783,244.4886,052,152.993,324,710,549.31Add: changes in accounting policiesCorrection of prior period errorsOtherII. Balance at beginning of current year726,950,251.002,386,924,900.84124,783,244.4886,052,152.993,324,710,549.31III. Increases and decreases of current year

d(

Decrease shall be filled in with “-”

7,282,530.2052,457,666.2859,740,196.48(I) Total comprehensive income72,825,301.9972,825,301.99(II) Investment of shareholders and capital reduction

1. Common equity invested by shareholders

2. Capital invested by other equity instruments holders

3. The amount of shares recorded into the shareholder's

e

uit

4. Others

(III) Distribution of profits7,282,530.20-20,367,635.71-13,085,105.51

1. Withdrawal of surplus reserves7,282,530.20-7,282,530.20

2. Distribution to shareholders-13,085,105.51-13,085,105.51

3. Others

(IV) Inner carrying-over of shareholders' equities

1. Capital reserve converted into capital (or capital

stock

2. Surplus public accumulation converted into capital

)(

or ca

ital stock

3. Surplus public accumulation loss remedy

4. Change in defined benefit plan carried forward to

retained earnin

)g

s

5.Other comprehensive income carried forward to

retained earnin

gg

s

6. Others

(V) Special reserve

1. Withdrawal for current period

2. Use for current period

(VI) OthersIV. Closing balance of current year726,950,251.002,386,924,900.84132,065,774.68138,509,819.273,384,450,745.79Legal Representative： Chief Financial Officer: Head of Accounting Department:

Undistributed profit

Statement of Changes in Equity of Parent Company

Year 2025Items

Current AmountPaid-in capital

Other equity instruments

Capital reserve

Less:

treasurystock

Othercomprehensiveincome

Specialreserve

Surplus reserveSubtotal

Prepared by: Hainan Jingliang Holdings Co., Ltd.Monetary Unit: RMB Yuan

Preferred

stoc

Perpetual

on

OthersI. Year-end balance of last year726,950,251.002,386,084,900.84117,184,317.4169,275,277.183,299,494,746.43Add: changes in accounting policiesCorrection of prior period errorsOtherII. Balance at beginning of current year726,950,251.002,386,084,900.84117,184,317.4169,275,277.183,299,494,746.43III. Increases and decreases of current year

d(

Decrease shall be filled in with “-”

840,000.007,598,927.0716,776,875.8125,215,802.88(I) Total comprehensive income75,989,270.7075,989,270.70(II) Investment of shareholders and capital reduction840,000.00840,000.00

1. Common equity invested by shareholders

2. Capital invested by other equity instruments holders

3. The amount of shares recorded into the shareholder's

e

uit

4. Others840,000.00840,000.00(III) Distribution of profits7,598,927.07-59,212,394.89-51,613,467.82

1. Withdrawal of surplus reserves7,598,927.07-7,598,927.07

2. Distribution to shareholders-51,613,467.82-51,613,467.82

3. Others

(IV) Inner carrying-over of shareholders' equities

1. Capital reserve converted into capital (or capital

stock

2. Surplus public accumulation converted into capital

)(

or ca

ital stock

3. Surplus public accumulation loss remedy

4. Change in defined benefit plan carried forward to

retained earnin

)g

s

5.Other comprehensive income carried forward to

retained earnin

gg

s

6. Others

(V) Special reserve

1. Withdrawal for current period

2. Use for current period

(VI) OthersIV. Closing balance of current year726,950,251.002,386,924,900.84124,783,244.4886,052,152.993,324,710,549.31Legal Representative： Chief Financial Officer: Head of Accounting Department:

Statement of Changes in Equity of Parent Company

Year 2025Items

Amount of Last Period

Specialreserve

Surplus reserveUndistributed profitSubtotalPaid-in capitalOther equity instruments

Capital reserve

Less:

treasurystock

Othercomprehensive income

Page 1 of 140

Hainan Jingliang Holdings Co., Ltd.2025 Financial

Statement Notes

I. Basic Information of the Company

1. Place of incorporation, form of organization and head office address

Hainan Jingliang Holdings Co., Ltd. (hereinafter referred to as "the Company" or"Company" or "Jingliang Holdings Company") is established in accordance with the HainanProvincial People's Government General Office QFBH (1992) No.1, approved by QY (1992)SGZ No. 6 Document of the People's Bank of Hainan Province and re-registered by HainanPearl River Enterprise Company on January 11, 1992. The Company issued 81,880,000 sharesin total upon re-registration, of which 60,793,600 shares were converted from the net assets ofthe original company and 21,086,400 shares were newly issued. And the name of the Companyis Hainan Pearl River Enterprise Co., Ltd. The business license registration number of the joint-stock company is 20128455-6, and the holding parent company Guangzhou Pearl RiverEnterprise Group holds 36,393,600 shares, accounting for 44.45%. Approved by ZGB (1992)No. 83 Document of the People's Bank of China in December 1992, the additional 21,086,400shares were listed on the Shenzhen Stock Exchange for trading. The industry involved is realestate.On March 25, 1993, in response to QGBH (1993) No.028 of Hainan Provincial LeadingGroup Office and SRYFZ (1993) No.099 of Shenzhen Special Economic Zone Branch of thePeople's Bank of China, the Company increased its share capital by converting the originalshare capital into 139,196,000 shares (according to distribution of 10, delivery of 5 and transferof 2), with the controlling shareholder Guangzhou Pearl River Enterprises Group holding48,969,120 shares accounting for 35.18% at the end of 1993.In 1994, the share capital was increased by 10 to 10, and the total share capital was278,392,000 shares after the increase. The controlling shareholder, Guangzhou Pearl RiverEnterprises Group, holds 97,938,240 shares, accounting for 35.18%.In 1995, the issuance of 50,000,000 B Shares was approved by SZBF (1995) No.45 andSZBF (1995) No.12. The share capital of the Company was increased by 10:1.5 on the basis of

Page 2 of 140

the share capital after the additional B shares were issued, and the share capital of the Companyafter the increase was 377,650,800 shares. The holding parent company, Guangzhou Pearl RiverEnterprises Group, held 112,628,976 shares, accounting for 29.82% of the total.In 1999, Guangzhou Pearl River Enterprises Group transferred all 112,628,976 shares toBeijing Wanfa Real Estate Development Co., Ltd. After the transfer of shares was completed inJune 1999, Beijing Wanfa Real Estate Development Co., Ltd. held 112,628,976 shares of theCompany, accounting for 29.82% of the total shares of the Company, and became thecontrolling shareholder of the Company.On January 10, 2000, the name of the Company was changed to Hainan Pearl RiverHolding Co., Ltd. and the Business License for Enterprise Legal Person was renewed byIndustrial & Commerce Administration Bureau of Hainan Province.On August 17, 2006, the reform plan of the split share structure of the Company wasimplemented. The Company transferred 49,094,604 shares of capital stock to all shareholdersat the ratio of 10 to 1.3. The original non-tradable shareholders transferred the increased sharesto the tradable A-share holders. Beijing Wanfa Real Estate Development Co., Ltd. reimbursedthe consideration shares of the non-tradable shareholders who have not expressly expressedtheir opinions. The converted total share capital was 426,745,404 shares, and the originalcontrolling shareholder Beijing Wanfa Real Estate Development Co., Ltd. held 107,993,698shares, accounting for 25.31%. Shareholders of non-tradable shares repaid 3,289,780 shares inconsideration of the split share structure in 2007. Shareholders of non-tradable shares repaid1,196,000 shares in consideration of the split share structure in 2009.On 2 September 2016, Beijing Wanfa Real Estate Development Co., Ltd., the originalcontrolling shareholder, transferred all of its 112,479,478 shares to Beijing Grain Group Co.,Ltd. (hereinafter referred to as "Beijing Grain Group"). Upon completion of the share transferin September 2016, Beijing Grain Group Co., Ltd. held 112,479,478 shares, accounting for

26.36% of the total shares of the Company. In November 2016, based on the confidence in the

subject matter of the material asset restructuring and the future development of the Company,Beijing Grain Group Co., Ltd. decided to increase its shareholding through centralized biddingin the secondary market. After the increase, it held 123,561,963 shares of the Company,

Page 3 of 140

accounting for 28.95% of the total number of shares, and became the largest shareholder of theCompany.The Company determined July 31, 2017 as the delivery date of material assets inaccordance with the material assets restructuring plan and the delivery agreement. OnSeptember 14, 2017, approved pursuant to the resolution of the Second Extraordinary GeneralMeeting of Shareholders of the Company on November 18, 2016 and the Approval Reply ofthe China Securities Regulatory Commission dated July 28, 2017 On Approval of Hainan PearlRiver Holding Co., Ltd. to Purchase Assets and Raise Supporting Funds from Beijing GrainGroup Co., Ltd. (ZJXK (2017) No.1391): 1) The Company purchased assets from the originalshareholders of Beijing Grain Food Co., Ltd. (hereinafter referred to as Beijing Grain Food) byissuing 210,079,552 shares of the balance between the transaction price of the injected assetsand the assets to be purchased (the difference between the transaction price of the injected assetsand the assets to be purchased was RMB 1,699.5436 million yuan). The par value in theissuance was RMB 1.00 per share and the issuance price was RMB 8.09 per share; 2) TheCompany has issued 48,965,408 non-public shares of the Company to Beijing Grain Group forthe purpose of purchasing the supporting funds raised from the assets of the issuance of shares.The par value per share of the Company was RMB1.00 and the issuance price was RMB8.82per share. The shareholder Beijing Grain Group conducted subscription in monetary funds.Upon completion of the issue, the registered capital was RMB 685,790,364.00 and the sharecapital was RMB 685,790,364.00. Beijing Grain Group, which accounted for 42.06% of thetotal number of shares, became the largest shareholder of the Company.

On November 21, 2019, with the approval of Beijing Capital Agribusiness Food GroupCo., Ltd. (Beijing Capital Agribusiness Food publish [2019] No. 212), Approval on the Plan ofPurchasing Assets by Cash and Issuing Shares of Hainan Jingliang Holdings Co., Ltd, On April ,2020, with the approval of Approval of Hainan Jingliang Holding Co., Ltd. Issuance Shares toWang Yuecheng to Purchase Assets by China Securities Regulatory Commission [2020] No.610, the company shall not issue more than 41,159,887 new shares in private offering to raisefunds supporting the purchase of assets through the issued shares. The Company and its

Page 4 of 140

subsidiary, Beijing Jingliang Food Co., Ltd., purchased the 25.1149% equity stake of ZhejiangLittle Prince by cash and issuance of shares.

As of December 31, 2025, the company has issued 726,950,251.00 shares, and thecompany's share capital is 726,950,251.00 yuan; Uniform Social Credit Code:

914600002012845568; Registration authority: Hainan Market Supervision Administration;Company type: Limited Company (Listed, State-controlled); Registered address: F29, DihaoBuilding, Pearl River Square, Binhai Avenue, Haikou City; Legal representative: WangChunli.

2. The nature of the Company's business and its main business activities

The Company belongs to manufacturing-agricultural and sideline food processing industry.Its main business activities mainly includes: food, beverages, oilseeds and by products,vegetable proteins and their products, organic fertilizers, microbial fertilizers, production andmarketing of agricultural fertilizers; land consolidation, soil remediation; agriculturalcomprehensive planting development, animal husbandry and aquaculture, agriculturalequipment production and marketing; computer network technology, investment incommunication projects, research and development and application of high-tech products;investment and consultation of environmental protection projects; animation, graphic design;import and export trade in goods and technology; rental of own premises.

The Company and its subsidiaries are primarily engaged in oil and oilseed processing andsale, as well as food processing and sales.

3. The name of the parent company and the ultimate parent company

The parent company of the company is Beijing Grain Group Co., Ltd., and the ultimateparent company is Beijing Capital Agribusiness Food Group Co., Ltd.

4. Business Cycle

From March 22, 1988 onward, with no fixed end date.

5. The approval institution and the approval date of the financial statements

The financial statements have been approved by the Board of Directors of the Companyin its resolution dated March 26, 2026.

Page 5 of 140

II. Preparation Basis for Financial Statements

1. Preparation Basis

Based on the assumption of going concern and according to actual transaction events, thefinancial statements are prepared in accordance with the relevant provisions of AccountingStandard for Business Enterprises and the following stated Significant Accounting Policies andEstimates.

2. Going Concern

The Company has a going concern capability for 12 months from the end of the reportingperiod and no material matters affecting the company's going concern capability were found.Therefore, the financial statements are presented on a going concern basis is reasonable.

III. Significant Accounting Policies and Estimates

Specific accounting policies and accounting estimates:

The Company and its subsidiaries are engaged in oil and oilseed processing and sales, aswell as food processing and sales. Based on the characteristics of their actual production andoperations, and in accordance with the relevant Accounting Standards for Business Enterprises,the Company and its subsidiaries have formulated specific accounting policies and accountingestimates for transactions and events such as revenue recognition. For details, please refer toNote III, 27 “Revenue” to these financial statements.

1. Statement of Compliance with Enterprise Accounting Standards

The financial statements prepared by the company comply with the requirements of theEnterprise Accounting Standards and fairly and completely reflect the company's andconsolidated financial position as of December 31, 2025, as well as the company's andconsolidated operating results, changes in shareholders' equity, and cash flows for 2025.

Additionally, these financial statements are prepared with reference to the disclosure andreporting requirements outlined in the China Securities Regulatory Commission’s "Regulations

Page 6 of 140

on the Preparation of Information Disclosure Reports for Publicly Issued Securities No. 15 -General Provisions on Financial Reports" (revised in 2023).

2. Accounting Period

The accounting period of the Company is divided into an annual period and an interimperiod. The accounting interim period refers to the reporting period shorter than a fullaccounting year. The fiscal year of the Company adopts the Gregorian calendar year, that is,from January 1 to December 31 of each year.

3. Business Cycle

The normal business cycle is the period from the time the Company purchases assets forprocessing to the time when cash or cash equivalents are realized. The Company uses 12 monthsas a business cycle and uses it as a liquidity classification standard for assets and liabilities.

4. Bookkeeping Standard Currency

RMB is the currency in the main economic environment in which the Company and itsdomestic subsidiaries operate. The Company and its domestic subsidiaries use RMB as thebookkeeping standard currency. The offshore subsidiaries of the Company determine USD astheir bookkeeping standard currency based on the currencies in the main economic environmentin which they operate. The currency used by the Company in preparing these financialstatements is RMB.

5. Materiality Standards Determination Method and Selection Basis

The company follows the materiality principle when preparing and disclosing financialreports. If disclosure matters involve the judgment of materiality standards. the methods ofdetermining materiality standards and selection basis are disclosed as follows:

Disclosure matters involve thejudgment of materiality standards

Methods of determining materiality standards and selection

basisImpairment test made onindividual accounts receivablewith significant amounts.

Impairment test made on individual accounts receivablesaccounting over 10% as total provision for various types ofbad debts receivablese, and amounts exceeding 5 millionyuan

Page 7 of 140

Disclosure matters involve thejudgment of materiality standards

Methods of determining materiality standards and selection

basisSignificant bad debt reserve foraccounts receivable recovered orreversed

Individual item recovered or reversed accounting over 10%as total amounts for various types of receivables andexceeding 5 million yuanSignificant receivables actuallywritten off

Individual write-off amount accounting for over 10% as totalamounts of various types of bad debts reserve forreceivables, and amounts exceeding 5 million yuanSignificant contractual liabilitieswith aging over one year

Individual contractual liabilities with aging over one yearaccounting over 10% of total amount of contractualliabilities, and amounts exceeding 10 million yuanSignificant project underconstruction

Projects with investments exceeding 5 million yuanSignificant non-wholly ownedsubsidiaries

Non-wholly owned subsidiaries with individual entity

revenue and net profit accounting 10% for items related to

the Company's consolidated statementsSignificant associates and jointventures

Associates and joint ventures for which the share of net

profit recognized for the current period exceeds 5% of the

Company’s consolidated net profit

Significant investing activities

Purchases of bonds, funds, wealth management products,

and other similar transactions with an amount reaching

RMB 50 million

6. The Accounting Treatment of Business Combination under the Same Control

and Different ControlBusiness Combination refers to the transaction or event in which two or more separateenterprises are merged to form one reporting entity. Business combination can be divided intobusiness combination under the same control and business combination under different control.

(1) Business combination under the same control

Enterprises participating in the combination are ultimately controlled by the same party ormultiple parties before and after the combination, and the control is not temporary, so it is thebusiness combination under the same control. In case of business combination under the samecontrol, the party that obtains control of other enterprises participating in the combination onthe combination date shall be the combination party, and the other enterprises participating in

Page 8 of 140

the combination shall be the merged party. The combination date refers to the date on whichthe combination party actually acquires control over the merged party.The assets and liabilities acquired by the combination party are measured at the book valueof the merged party at the date of consolidation, including goodwill that was formed duringacquisition by end controller. If the difference between the book value of the net assets acquiredby the merging party and the book value of the merged consideration (or the total par value ofthe issued shares) paid by the merging party, and the capital reserve (share capital premium)shall be adjusted; If the capital reserve (equity premium) is insufficient to offset, the retainedearnings shall be adjusted.

The direct expenses incurred by the merging party for the purpose of business combinationshall be included in the profits and losses of the current period when they are incurred.

(2) Business combination under different control

If the enterprises participating in the merger are not ultimately controlled by the same partyor multiple parties before and after the merger, the enterprise merger is not under the samecontrol. In case of business combination under different control, the party that obtains controlof other enterprises participating in the combination on the date of purchase shall be thePurchaser, and the other enterprises participating in the combination shall be the Purchasee.Purchase date means the date on which the Purchaser actually acquires control of the Purchasee.

For business combination under different control, the merger cost includes the assets,liabilities and fair value of equity securities issued by the Purchaser in order to obtain the controlover the Purchasee on the date of purchase, and the intermediary fees such as audit, legal service,appraisal and consultation and other management fees for the enterprise merger are used torecord into the profits and losses of the current period when incurred. The transaction costs ofequity or debt securities issued by the Purchaser as a merger consideration are included in theinitial recognition amount of the equity or debt securities.Contingent consideration involvedshall be included in the consolidation cost at its fair value at the purchase date, and theconsolidation goodwill shall be adjusted accordingly if new or further evidence of the existenceof circumstances at the purchase date appears within 12 months after the purchase date and theadjustment or consideration is required. The consolidation cost incurred by the Purchaser andthe identifiable net assets acquired during the consolidation are measured at the fair value at the

Page 9 of 140

date of purchase. The difference between the merger costs and the fair value shares of theidentifiable net assets of the Purchasee at the purchase date obtained in the merger is recognizedas goodwill. If the combined cost is less than the fair value of the identifiable net assets of thePurchasee in the merger, first, the fair value of the identifiable assets, liabilities and contingentliabilities of the Purchasee and the measurement of the consolidation cost shall be re-checked.If the consolidation cost is still smaller than the fair value share of the identifiable net assets ofthe Purchased obtained in the consolidation after the re-check, the difference shall be recordedinto the profits and losses of the current period.When the Purchaser acquires the deductible temporary difference of the Purchasee, if itfails to recognize the deferred income tax assets on the date of purchase because it does notmeet the recognition conditions for the deferred income tax, and within 12 months of the dateof purchase, new or further information is obtained indicating that the relevant circumstancesat the purchase date already exist and the economic benefits from the temporary differencedeductible by the purchaser on the purchase date are expected to be realized, the relevantdeferred income tax assets shall be recognized, and the goodwill shall be reduced. If thegoodwill is not sufficiently offset, the difference shall be recognized as the current profit or loss;In addition to the above circumstances, the deferred income tax assets related to the enterprisemerger are recognized and included in the current profits and losses.

Through multi-transaction and step-by-step business combination under different control,according to the Circular of the Ministry of Finance on Printing and Issuing the Interpretationof Accounting Standards for Business Enterprises No.5 (CK (2012) No.19) and Article 51 ofthe Accounting Standards for Business Enterprises No.33-Consolidated Financial Statementson the judgment criteria of "package deal" (see 7 (2) of Note Ⅲ), it is determined whether themultiple transactions belong to the "package deal". In the case of a "package deal", theaccounting treatment shall be performed with reference to the description in the precedingparagraphs of this section and Note Ⅲ, 15 "Long-term Equity Investments"; If the transactionis not a "package deal", the accounting treatment shall be distinguished between the individualfinancial statements and the consolidated financial statements:

In the individual financial statements, the sum of the book value of the equity investmentheld by the Purchaser prior to the purchase date and the cost of the new investment at thepurchase date shall be taken as the initial investment cost of the investment; Where the equityof the Purchased held before the date of purchase involves other comprehensive income, theother consolidated income associated with the investment is accounted for on the same basis as

Page 10 of 140

the assets or liabilities directly disposed of by the Purchaser (i.e., except for the correspondingshare in the change caused by the acquisition of the net liability or net assets of the definedbenefit plan remeasured in accordance with the equity method, the rest is transferred to thecurrent investment income).In the consolidated financial statements, the equity of the Purchased held prior to the dateof purchase is remeasured according to the fair value of the equity at the date of purchase, andthe difference between the fair value and the carrying value is included in the investmentincome of the current period; Where the equity of the Purchasee held before the date of purchaseinvolves other comprehensive income, other consolidated income related thereto shall beaccounted for on the same basis as the direct disposal of the relevant assets or liabilities by thePurchaser (i.e., except for the corresponding share in the change caused by the acquisition ofthe net liability or net asset of the defined benefit plan remeasured in accordance with the equitymethod, the rest is converted into the investment income of the current period to which theacquisition date belongs).

7. Criteria for the Judgment of Control and Methods for the Preparation of

Consolidated Financial Statements

(1) Criteria for the Judgment of Control

The scope of consolidation of the consolidated financial statements is determined on acontrol basis. Control means that the Company has the authority over the Investee, enjoys avariable return by participating in the relevant activities of the Investee, and has the ability touse its authority over the Investee to influence the amount of such return. The scope of themerger includes the Company and all its subsidiaries. Subsidiary refers to the main bodycontrolled by the Company.The Company will re-evaluate the above control definitions once the relevant facts andcircumstances change, which results in the change of the relevant elements.

(2) Preparation method of consolidated financial statement

The Company begins to incorporate the net assets of the subsidiary and the actual controlof the production and operation decisions into the scope of the merger from the date when thesubsidiary is acquired; Cease to be included in the scope of the merger as of the date of loss ofeffective control. For the subsidiaries disposed of, the operating results and cash flows prior tothe date of disposal have been appropriately included in the consolidated income statement and

Page 11 of 140

consolidated cash flow statement; For subsidiaries disposed of in the current period, the openingamount of the consolidated balance sheet is not adjusted. The operating results and cash flowsof subsidiaries increased by consolidation after purchase have been properly included in theconsolidated income statement and consolidated cash flow statement, and the opening andcomparative amounts in the consolidated financial statements have not been adjusted forsubsidiaries that are not under the same control. The operating results and cash flows of thesubsidiaries increased by consolidation under the same control from the beginning of theconsolidation period to the consolidation date have been appropriately included in theconsolidated profit statement and consolidated cash flow statement, and the comparativeamount of the consolidated financial statements has been adjusted at the same time.

In the preparation of the consolidated financial statements, if the accounting policies oraccounting periods adopted by the subsidiaries are inconsistent with those adopted by theCompany, necessary adjustments shall be made to the financial statements of the subsidiariesin accordance with the accounting policies and accounting periods of the Company. Forsubsidiaries acquired through business combination under different control, the financialstatements shall be adjusted on the basis of the fair value of identifiable net assets at the date ofpurchase.

All significant transaction balances, transactions and unrealized profits within theCompany are offset at the time of preparation of the consolidated financial statements.

The shareholders' equity and the portion of the net profit or loss of the subsidiary that isnot owned by the Company for the current period are separately presented as minorityshareholders' equity and minority shareholders' profit or loss in the consolidated financialstatements under shareholders' equity and net profit. The shares of minority shareholders' equityin the net profits and losses of subsidiaries for the current period are shown as "minorityshareholders' profits and losses" under the net profit item in the consolidated income statement.Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' sharein the shareholders' equity of the subsidiary at the beginning of the period, and still decrease bya number of shareholders' equity.

When the control of the original subsidiary is lost due to the disposal of part of the equityinvestment or other reasons, the residual equity shall be revalued according to its fair value atthe date of loss of control. The sum of consideration obtained from the disposal of equity andthe fair value of the remaining equity minus the difference between the shares of the net assets

Page 12 of 140

of the original subsidiary that shall be continuously calculated from the purchase date accordingto the original shareholding proportion shall be included in the investment income of the currentperiod of loss of control. Other comprehensive income related to the equity investment of theoriginal subsidiary, in the event of loss of control, the accounting treatment is performed on thesame basis as the direct disposal of the relevant assets or liabilities by the Purchased (i.e.converted to current investment income, except for changes resulting from the re-measurementof the net liabilities or net assets of the Defined Benefit Plan in the original subsidiary).Thereafter, the residual equity shall be subsequently measured in accordance with the relevantprovisions of Accounting Standards for Business Enterprises No.2-Long-term EquityInvestment or Accounting Standards for Business Enterprises No.22-Recognition andMeasurement of Financial Instruments, as detailed in Note Ⅲ, 15-Long-term Equity Investmentor Note Ⅲ, 11-Financial Instruments.

If the Company disposes of the equity investment in subsidiaries step by step until it losescontrol through multiple transactions. It is necessary to distinguish whether the transactions thatdispose of the equity investment in subsidiaries until it loses control belong to a package dealor not. The terms, conditions and economic impact of the transactions for the disposal of equityinvestments in subsidiaries are in accordance with one or more of the following circumstancesand generally indicate that multiple transactions should be accounted for as a package deal: ①These transactions were entered into simultaneously or taking into account each other'sinfluence; ② Only when these transactions are taken together can a complete business resultbe achieved; ③ The occurrence of one transaction depends on the occurrence of at least oneother transaction; ④ It is not economical to consider a transaction alone, but it is economicalto consider it in conjunction with other transactions. For transactions that are not part of thepackage deal, each transaction shall be accounted for in accordance with the principlesapplicable to the "partial disposal of long-term equity investments in subsidiaries without lossof control" (as detailed in 15 of Note Ⅲ) and the "loss of control over existing subsidiaries as aresult of the disposal of part of the equity investments or other reasons" (as detailed in thepreceding paragraph), as appropriate. If the transactions involving the disposal of equityinvestments in subsidiaries until the loss of control belong to a package deal, the transactionsshall be accounted for as a transaction involving the disposal of subsidiaries and the loss ofcontrol; However, the difference between each disposal price and the share of the subsidiary'snet assets corresponding to the disposal investment prior to the loss of control is recognized inthe consolidated financial statements as other consolidated gains and transferred to the profit orloss for the current period of loss of control in the event of loss of control.

Page 13 of 140

8. Classification of Joint Venture Arrangements and Accounting Treatment of

Joint OperationA joint venture arrangement is an arrangement under the joint control of two or moreparticipants. The Company divides the joint venture arrangement into joint operation and jointventure in accordance with the rights and obligations it enjoys in the joint venture arrangement.A joint operation is a joint arrangement whereby the parties that have joint control of thearrangement have rights to the assets, and obligations for the liabilities, relating to thearrangement. A joint venture is a type of joint arrangement whereby the parties that have jointcontrol of the arrangement have rights to the net assets of the joint venture.The Company's investment in the joint venture is accounted for using the equity method,and shall be treated in accordance with the accounting policy described in Note Ⅲ, 15 "Long-term Equity Investment Accounted by the Equity Method".

The Company, as a joint venture party, recognizes the assets and liabilities held andassumed by the Company separately, and recognizes the assets and liabilities jointly held andassumed by the Company according to the shares of the Company; recognizes the revenuegenerated from the sale of the share of joint operating output enjoyed by the Company;recognizes revenue generated from the sale of output from joint operations on the basis of theCompany's share; confirms the expenses incurred by the Company individually and theexpenses incurred by the joint operation according to the shares of the Company.When the Company invests or sells assets as a joint venture (such assets do not constitutebusiness, the same below), or purchases assets from the joint venture, the Company recognizesonly the portion of the profits and losses attributable to the other participants in the joint venturethat arises from the transaction prior to the sale of such assets to a third party. Where such assetsare impaired in accordance with the provisions of Accounting Standards for BusinessEnterprises No.8-Impairment of Assets, the Company shall fully recognize such losses in thecase where the assets are cast or sold by the Company to joint operations; For the assetspurchased by the Company from the joint operation, the Company recognizes the lossesaccording to the shares it assumes.

9. Determining Standards for Cash and Cash Equivalent

Cash and cash equivalents of the Company include cash on hand, deposits that can bereadily withdrawn on demand. Cash equivalents are investments held by the Company with ashort term (usually maturing within three months from the date of purchase), high liquidity,

Page 14 of 140

readily convertible to known amounts of cash and which are subject to an insignificant risk ofchanges in value.

10. Foreign Currency Business and Translation of Foreign Currency Statements

(1) Translation method for foreign currency transaction

At the time of initial confirmation, the foreign currency transactions occurring in theCompany shall be converted into the bookkeeping functional currency amount at the spotexchange rate on the trading day, but the foreign currency exchange business or transactionsinvolving foreign currency exchange occurring in the Company shall be converted into thebookkeeping functional currency amount at the actual exchange rate.

(2) Translation method for foreign currency monetary items and foreign currency non-

monetary item

On the balance sheet date, the foreign currency monetary items are converted at the spotexchange rate on the balance sheet date, and the exchange difference arising therefrom shall be:

① The exchange difference arising from the special foreign currency borrowings related to the

acquisition and construction of assets eligible for capitalization shall be handled in accordancewith the principle of capitalization of borrowing costs; ② The exchange difference of thehedging instruments used for effective hedging of the net investment in overseas operations(the difference is included in other comprehensive income, and is not recognized as currentprofit or loss until the net investment is disposed of); ③ Except for the amortized cost, theexchange differences arising from the changes in the book balance of the available-for-salemonetary items in foreign currencies shall be included in the other comprehensive income, andshall be included in the profits and losses of the current period.

Where the preparation of the consolidated financial statements involves overseasoperations, if there are foreign currency monetary items constituting net investment in overseasoperations, the exchange differences arising from exchange rate changes shall be included inother comprehensive income; When disposing of overseas operations, the profits and lossesshall be transferred to the current disposal period.

Non-monetary items in foreign currencies measured at historical cost shall still bemeasured at the bookkeeping amount in functional currency translated at the spot exchange rateon the transaction date. For non-monetary items in foreign currencies measured at fair value,the spot exchange rate at the date of fair value determination shall be adopted for conversion.

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The difference between the converted amount in functional currency and the amount in originalfunctional currency shall be treated as the change in fair value (including the change inexchange rate), and shall be recorded into the profits and losses of the current period orrecognized as other comprehensive income.

(3) Translation method for financial statements in foreign currencies

Where the preparation of the consolidated financial statements involves overseasoperations, if there are foreign currency monetary items constituting net investment in overseasoperations, the exchange differences arising from exchange rate changes shall be as "foreigncurrency report conversion difference" and be confirmed as other comprehensive income;When disposing of overseas operations, the profits and losses shall be transferred to the currentdisposal period.

The foreign currency financial statements of overseas operations shall be converted intoRMB statements in the following ways: the assets and liabilities in the balance sheet shall beconverted at the spot exchange rate on the balance sheet date; Except for "undistributed profits",other items of shareholders' equity shall be converted at the spot exchange rate at the time ofoccurrence. The income and expense items in the profit statement shall be converted at theaverage exchange rate of the current period on the date of transaction. The undistributed profitat the beginning of the period shall be the undistributed profit at the end of the period convertedfrom the previous year; The undistributed profits at the end of the year shall be calculated andlisted according to the converted profits distribution items; The difference between theconverted asset items and the total amount of the liability items and shareholders' equity itemsshall be recognized as other comprehensive income as the translation difference in the foreigncurrency statements. In case of disposal of overseas operations and loss of control, the balancein translation of the foreign currency statements related to the overseas operations as shownbelow in the shareholders' equity items in the balance sheet shall be transferred to the profitsand losses of the disposal period in whole or in proportion to the disposal of the overseasoperations.

Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be convertedat the average exchange rate of the current period on the date of occurrence of the cash flows.The effect of exchange rate changes on cash shall be presented separately in the statement ofcash flows as an reconciling item.

Opening amounts and prior-period actual amounts shall be shown on the basis of amounts

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translated from the prior-period financial statements.

When disposing of all the owner's equity of the Company's overseas operations or losingthe control over overseas operations due to the disposal of part of the equity investment or forother reasons, if the following items of shareholders' equity in the balance sheet are shownbelow, the balance in translation of the foreign currency statement attributable to the owner'sequity of the parent company related to the overseas operation shall be transferred to the profitsand losses of the current disposal period.In the event that the proportion of overseas business interests is reduced due to the disposalof part of the equity investment or for other reasons, but the control over overseas businessoperations is not lost, the balance in the translation of the foreign currency statements relatedto the disposal of part of overseas business operations shall be attributed to minorityshareholders' interests and shall not be transferred to the profits and losses of the current period.When disposing of part of the equity of an overseas operation as an associated enterprise or ajoint venture, the balance of the translation of the foreign currency statements related to theoverseas operation shall be transferred into the profits and losses of the current disposal periodin the proportion of the overseas operation disposed of.

11. Financial Instruments

Financial instruments are the contracts that form the financial assets of one entity, and atthe same time form the financial liabilities or equity instruments of other entities.

(1) Classification, confirmation and measurement of financial assets

According to the business mode of managing financial assets and the contractual cash flowcharacteristics of financial assets, the Company divides financial assets into: Financial assetsmeasured at amortized cost. Financial assets measured at fair value with changes included inother comprehensive income. Financial assets that are measured at fair value and whosemovements are included in the current profits and losses.

Financial assets are measured at fair value at initial recognition. For financial assetsmeasured at fair value and whose changes are included in current profits and losses, relevanttransaction costs are directly included in current profits and losses. For other types of financialassets, relevant transaction costs are included in the initial recognition amount. Accountsreceivable or notes receivable arising from the sale of products or the provision of labor servicesthat do not contain or take into account significant financing components shall be initially

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recognized by the Company in accordance with the amount of consideration that the Companyis expected to be entitled to receive.

① Financial assets measured at amortized cost

The Group measures financial assets at fair value through other comprehensive income ifboth of the following conditions are met: the financial asset is held within a business modelwith the objective of both holding to collect contractual cash flows and selling; the contractualterms of the financial asset give rise on specified dates to cash flows that are solely paymentsof principal and interest on the principal amount outstanding. Interest income of such financialassets is recognized based on effective interest method. The Company measures these financialassets at fair value and their changes are included in other comprehensive income, butimpairment loss or gain, exchange gain or loss and interest income calculated according to theeffective interest rate method are included into the current profit and loss.

② Financial assets measured at fair value with changes included in other comprehensive

income

The Group measures financial assets at fair value through other comprehensive income ifboth of the following conditions are met: the financial asset is held within a business modelwith the objective of both holding to collect contractual cash flows and selling; the contractualterms of the financial asset give rise on specified dates to cash flows that are solely paymentsof principal and interest on the principal amount outstanding. Interest income of such financialassets is recognised based on effective interest method. The Company measures these financialassets at fair value and their changes are included in other comprehensive income, butimpairment loss or gain, exchange gain or loss and interest income calculated according to theeffective interest rate method are included into the current profit and loss.

In addition, the Company designates some non tradable equity instrument investments asfinancial assets measured at fair value with changes included in other comprehensive income.The Company shall record the relevant dividend income of such financial assets into the currentprofits and losses, and the change of fair value into other comprehensive income. When thefinancial asset is derecognized, the accumulated gains or losses previously included in othercomprehensive income will be transferred from other comprehensive income to retainedincome and will not be included in current profits and losses.

③ Fair value through Profit and Loss Financial assets

The Company classifies the above financial assets measured at amortized cost and

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financial assets measured at fair value with changes included in other comprehensive incomeinto financial assets measured at fair value with changes included in current profits and losses.In addition, during initial recognition, in order to eliminate or significantly reduce accountingmismatch, the Company designated part of financial assets as financial assets measured at fairvalue with changes included in current profit and loss. For such financial assets, the Companyadopts fair value for subsequent measurement, and the changes in fair value are included intothe current profit and loss.

(2) Classification, recognition and measurement of financial liabilities

Financial liabilities upon initial recognition are classified as financial liabilities which aremeasured at fair value and whose changes are included in current profits and losses and otherfinancial liabilities. For the financial liabilities measured at fair value with the changes includedinto the current profits and losses, the relevant transaction costs are directly included into thecurrent profits and losses, and the relevant transaction costs of other financial liabilities areincluded in the initial recognition amount.

① Financial liabilities at fair value through profit or loss

Financial liabilities measured at fair value with changes included in current profits andlosses, which include transactional financial liabilities (including derivatives belonging tofinancial liabilities) and financial liabilities designated to be measured at fair value with changesincluded in current profits and losses at initial recognition.

Trading financial liabilities (including derivatives belonging to financial liabilities) aresubsequently measured according to their fair values. Except for those related to hedgeaccounting, changes in fair values are included in current profits and losses.

Financial liabilities designated to be measured at fair value with changes included incurrent profits and losses. Changes in the fair value of this liability caused by changes in theCompany's own credit risk are included in other comprehensive income. When the liability isderecognized, the accumulated change in fair value caused by changes in its own credit riskincluded in other comprehensive income is transferred to retained earnings. Changes in fairvalue are accounted into current profits and losses. If the above-mentioned treatment of theimpact of changes in the credit risk of these financial liabilities will cause or expand accountingmismatch in profits and losses, the Company will include all profits or losses of the financialliabilities (including the impact amount of changes in the credit risk of the enterprise itself) intothe current profits and losses.

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② Other financial liabilities

Except for financial liabilities and financial guarantee contracts formed by the transfer offinancial assets that do not meet the conditions for termination of recognition or continue to beinvolved in the transferred financial assets, other financial liabilities are classified as financialliabilities measured at amortized cost and subsequently measured at amortized cost. Gains orlosses arising from termination of recognition or amortization are included in current profitsand losses.

(3) Basis of Confirmation and Calculation of financial instruments

Financial assets shall be derecognized if they meet one of the following conditions: ①The termination of the contractual right to receive cash flow from the financial asset. ② Thefinancial asset has been transferred, and almost all risks and rewards related to the ownershipof the financial asset have been transferred to the transferee. ③ The financial asset has beentransferred. Although the enterprise has neither transferred nor retained almost all risks andrewards in the ownership of the financial asset, it has given up its control over the financialasset.

If the enterprise neither transfers nor retains almost all the risks and rewards of theownership of the financial assets, and does not give up the control over the financial assets, therelevant financial assets shall be recognized according to the extent of continuous involvementin the transferred financial assets, and the relevant liabilities shall be recognized accordingly.The degree of continuous involvement in the transferred financial assets refers to the risk levelfaced by the enterprise due to the change in the value of the financial assets.

If the overall transfer of financial assets meets the conditions for termination of recognition,the difference between the book value of the transferred financial assets and the sum of theconsideration received due to the transfer and the accumulated amount of changes in fair valueoriginally included in other comprehensive income shall be included into the current profits andlosses.

If the partial transfer of financial assets meets the conditions for termination of recognition,the book value of the transferred financial assets shall be apportioned according to its relativefair value between the derecognized part and the non derecognized part, and the differencebetween the sum of the consideration received due to the transfer and the accumulated changein fair value originally included in other comprehensive income that shall be apportioned to thederecognized part and the allocated aforesaid book amount shall be included into the current

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profits and losses.For financial assets sold by the Company with recourse, or for endorsement and transferof held financial assets, it is necessary to determine whether almost all risks and rewards in theownership of the financial assets have been transferred. If almost all risks and rewards in theownership of the financial asset have been transferred to the transferee, the recognition of thefinancial asset shall be terminated. If almost all risks and rewards on the ownership of afinancial asset are retained, the recognition of the financial asset shall not be terminated. Ifalmost all risks and rewards related to the ownership of financial assets have not beentransferred or retained, it shall continue to judge whether the enterprise retains control over theassets and carry out accounting treatment according to the principles mentioned in the precedingparagraphs.

(4) Termination of recognition of financial liabilities

If the current obligation of the financial liability (or part thereof) has been relieved, theCompany terminates the recognition of the financial liability (or part thereof). The Company(the borrower) and the lender sign an agreement to replace the original financial liabilities byassuming new financial liabilities. If the contract terms of the new financial liabilities and theoriginal financial liabilities are substantially different, the original financial liabilities shall bederecognized and a new financial liability shall be recognized at the same time. If the Companymakes any substantial modification to the contract terms of the original financial liability (orpart thereof), the original financial liability shall be derecognized and a new financial liabilityshall be recognized in accordance with the modified terms.If financial liabilities (or part thereof) are derecognized, the Company shall include thedifference between its book value and the consideration paid (including transferred non-cashassets or liabilities assumed) into the current profits and losses.

(5) Offset of financial assets and financial liabilities

When the Company has the legal right to offset the recognized amount of financial assetsand financial liabilities, and such legal right is currently enforceable, and the Company plansto settle the financial assets on a net basis or realize the financial assets and settle the financialliabilities at the same time, the financial assets and financial liabilities are listed in the balancesheet at a net amount after mutual offset. In addition, financial assets and financial liabilitiesshall be listed separately in the balance sheet and shall not be offset against each other.

(6) The fair value determination method of financial assets and financial liabilities

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Fair value refers to the price that market participants can receive from selling an asset orpay to transfer a liability in an orderly transaction on the measurement date. Where there is anactive market for financial instruments, the Company adopts quotations in the active market todetermine their fair values. Quoted price in active market refers to the price easily obtainedfrom exchanges, brokers, industry associations, pricing service agencies, etc. on a regular basis,and represents the price of market transactions actually occurred in fair trading. If there is noactive market for financial instruments, the Company uses evaluation techniques to determinetheir fair values. Evaluation techniques include reference to prices used in recent markettransactions by parties familiar with the situation and willing to trade, reference to current fairvalues of other financial instruments that are substantially the same, discounting cash flowtechnique, option pricing model, etc. In valuation, the Company adopts valuation techniquesthat are applicable under current circumstances and are supported by sufficient available dataand other information, selects input values that are consistent with the characteristics of assetsor liabilities considered by market participants in transactions related to assets or liabilities, andgives priority to the use of relevant observable input values as much as possible. If the relevantobservable input value cannot be obtained or it is not impracticable to obtain it, the non-inputvalue shall be used.

(7) Equity instruments

Equity instruments refer to contracts that can prove ownership of the Company's residualequity in assets after deducting all liabilities. The issuance (including refinancing), repurchase,sale or cancellation of equity instruments by the Company are treated as changes in equity, andtransaction costs related to equity transactions are deducted from equity. The Company doesnot recognize changes in the fair value of equity instruments.

Dividends (including "interest" generated by instruments classified as equity instruments)distributed by the Company's equity instruments during their existence shall be treated as profitdistribution.

12. Impairment of financial assets

The financial assets of the Company that need to confirm the impairment loss are financialassets measured at amortized cost and debt instrument investment measured at fair value withchanges included in other comprehensive income, mainly including notes receivable, accountsreceivable, other receivables, debt investment, other debt investment, long-term receivables,etc. In addition, for some financial guarantee contracts, impairment reserves and credit

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impairment losses are also accrued in accordance with the accounting policies described in thispart.

(1) Recognition method of impairment provision

On the basis of expected credit losses, the Company sets aside impairment reserves andrecognizes credit impairment losses for the above items according to the applicable expectedcredit loss measurement method (general method or simplified method).Credit loss refers to the difference between all contractual cash flows receivable accordingto the contract and all cash flows expected to be collected by the Company discounted accordingto the original actual interest rate, i.e. the present value of all cash shortages. Among them, forthe financial assets that have been purchased or incurred credit impairment, the Companydiscounts them according to the actual interest rate adjusted by credit.The general method of measuring expected credit loss refers to the Company's assessmentof whether the credit risk of financial assets has increased significantly since the initialrecognition on each balance sheet date. If the credit risk has increased significantly since theinitial recognition, the Company will measure the loss reserve by an amount equivalent to theexpected credit loss during the entire period. If the credit risk has not increased significantlysince the initial recognition, the Company will measure the loss reserve according to the amountequivalent to the expected credit loss in the next 12 months. In assessing the expected creditloss, the Company takes into account all reasonable and evidence-based information, includingforward-looking information.For financial instruments with low credit risk on the balance sheet date, the Companymeasures the loss reserve based on the expected credit loss amount within the next 12 monthsor the entire duration according to whether the credit risk has increased significantly since theinitial recognition.

(2) Criteria for judging whether credit risk has increased significantly since initial

recognition

If the default probability of a certain financial asset in the expected duration determined atthe balance sheet date is significantly higher than the default probability in the expectedduration determined at the time of initial recognition, it indicates that the credit risk of thefinancial asset is significantly increased. Except for special circumstances, the Company usesthe change of default risk in the next 12 months as a reasonable estimate of the change of default

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risk in the entire duration to determine whether the credit risk has increased significantly sincethe initial recognition.Generally, if the overdue period is more than 90 days, the Company will consider that thecredit risk of the financial instrument has increased significantly, unless there is conclusiveevidence that the credit risk of the financial instrument has not increased significantly since theinitial recognition.

The Company will consider the following factors when evaluating whether the credit riskhas increased significantly

1) Whether there is any significant change in the actual or expected operating results of

the debtor;

2) Whether there is any significant adverse change in the regulatory, economic or

technological environment of the debtor;

3) Whether there is any significant change in the value of the collateral or the quality of

the guarantee or credit enhancement provided by the third party, which are expected to reducethe economic motivation of the debtor's repayment according to the time limit stipulated in thecontract or affect the probability of default;

4) Whether there is any significant change in the expected performance and repayment

behavior of the debtor;

5) Whether there is any significant change in the Company's credit management methods

for financial instruments, etc.

On the balance sheet date, if the Company judges that the financial instrument has onlylow credit risk, the Company assumes that the credit risk of the financial instrument has notincreased significantly since the initial recognition. If the default risk of a financial instrumentis low, the borrower's ability to perform its contractual cash flow obligations in a short periodof time is strong, and even if there are adverse changes in the economic situation and operatingenvironment for a long period of time, it may not necessarily reduce the borrower's ability toperform its contractual cash obligations, then the financial instrument is considered to have lowcredit risk.

(3) Judgment criteria for financial assets with credit impairment:

When one or more events have an adverse impact on the expected future cash flow of a

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financial asset, the financial asset becomes a financial asset with credit impairment. Theevidence of credit impairment of financial assets includes the following observable information:

1) The issuer or debtor has major financial difficulties;

2) The debtor violates the contract, such as default or overdue payment of interest or

principal, etc.;

3) The creditor gives concessions that the debtor will not make under any other

circumstances due to economic or contractual considerations related to the debtor's financialdifficulties;

4) The debtor is likely to go bankrupt or undergo other financial restructuring;

5) The active market of the financial assets disappears due to the financial difficulties of

the issuer or the debtor;

6) Purchase or generate a financial asset at a substantial discount, which reflects the fact

that credit losses have occurred.Credit impairment of financial assets may be caused by the combined action of multipleevents, but may not be caused by separately identifiable events.

(4) Portfolio approach to evaluate expected credit risk based on portfolio

The Company evaluates credit risks for financial assets with significantly different creditrisks, such as: Accounts receivable with related parties. Receivables in dispute with the otherparty or involving litigation or arbitration. Receivables with obvious signs that the debtor islikely to be unable to perform the repayment obligation.

In addition to the financial assets with individual credit risk assessment, the Companydivides the financial assets into different groups based on the common risk characteristics. Thecommon credit risk characteristics adopted by the Company include: Credit risk shall beassessed on the basis of the aging portfolio, the receivables portfolio between the finalcontrolling party and its subordinate units, the public maintenance fund and house selling fundportfolio deposited in the housing provident fund management center, the deposit/marginportfolio, and the petty cash ledger portfolio formed by the employee loan of the unit.

(5) Accounting treatment method for impairment of financial assets

At the end of the period, the Company calculates the estimated credit losses of various

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financial assets. If the estimated credit losses are greater than the book amount of its currentimpairment reserve, the difference is recognized as impairment loss. If it is less than thecarrying amount of the current impairment reserve, the difference is recognized as impairmentgain.

(6) Methods for determining the credit loss of various financial assets

① Notes receivable

The Company measures the loss reserve for bills receivable according to the expectedcredit loss amount equivalent to the entire duration. Based on the credit risk characteristics ofbills receivable, they are divided into different portfolios:

Item Basis for determining portfolioBank acceptance bills The acceptor is a bank with less credit riskCommercial acceptance bill

According to the acceptor's credit risk classification, it shouldbe the same as the "receivable" portfolio classification.

As for the notes receivables’ classified as portfolio, the Company referred to the historicalcredit loss experience, combined with current situation and forecast for the future economiccondition, calculating the expected credit loss. Through risk exposure at default and lifetimeexpected credit loss,

② Accounts receivable and other receivables

For receivables that do not contain significant financing components, the Companymeasures the loss reserve according to the expected credit loss amount equivalent to the entireduration.

For receivables that contain significant financing components, the Company measures theloss reserve based on whether the credit risk has increased significantly since the initialrecognition, using the amount of expected credit loss within the next 12 months or the entireduration.

According to whether the credit risk of other receivables has increased significantly sincethe initial recognition, the Company measures impairment loss with an amount equivalent tothe expected credit loss within the next 12 months or the entire duration.

In addition to the accounts receivable and other receivables that individually assess credit

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risk, they are divided into different portfolios based on their credit risk characteristics:

Item Basis for determining portfolioPortfolio 1 Credit portfolioAs for the receivables classified as portfolio, the Company referred to the historical creditloss experience, combined with current situation and forecast for the future economic condition,calculating the expected credit loss. Through cross reference table between the aging ofreceivables and lifetime expected credit loss. The aging of receivables is calculated on the dateof recognition.The portfolio of other receivable is recognized as follows:

Item Basis for determining portfolioPortfolio 1 Credit portfolioPortfolio 2 Deposit/margin portfolioPortfolio 3 The portfolio of reserve fund ledger formed by the Company's staff loan

As for the other receivables classified as portfolio, the Company referred to the historicalcredit loss experience, combined with current situation and forecast for the future economiccondition, calculating the expected credit loss. Through risk exposure at default and lifetimeexpected credit loss in the coming 12 months. For the other receivables classified as aging, iscalculated on the date of recognition.

13. Inventory

(1) Classification of inventory

Inventories mainly include raw materials, work in progress, finished goods, in transitmaterials inventory goods, reserve tanker storage commissioned processing, and manufacturingconsignment, etc..

(2) Valuation method for obtaining and issuing inventory

Inventories are initially measured at cost. Inventory costs include purchase costs,processing costs and other expenditures. The actual cost of inventories upon delivery iscalculated using the weighted average method.

(3) Confirmation of net realizable value of inventories and method of accrual of falling

price reserve

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Net Realizable Value refers to the amount of estimated selling price of inventories minusthe estimated cost till completion, estimated expenses for selling activity and related taxes andfees in daily activities. When determining the net realizable value of inventories, solid evidenceobtained shall be the basis, and the purpose of holding the inventories and the impact of eventsafter the balance sheet date shall be considered.

On the balance sheet date, inventories shall be measured at lower of cost and net realizablevalue. When the net realizable value is lower than the cost, the provision for inventorydevaluation shall be accrued. The provision for inventory devaluation shall be accrued basedon the difference between the cost of a single inventory item and its net realizable value. Theprovision for inventory devaluation of a large number of inventories with low unit prices shallbe based on the type of inventory; for inventories related to the product range produced andsold in same region, having the same or similar end use or purpose, and difficult to be separatedfrom other items for measurement, their provision for inventory devaluation can be combinedand accrued.

After the provision for inventory devaluation is accrued, if the factors cause the previouswritten-down inventory value have disappeared, and the situation results in the fact that the netrealizable value of the inventories higher than the book value, the amount of the provision forinventory devaluation that has been accrued shall be reversed and included in the current periodprofit or loss.

(4) The Company adopts perpetual inventory system as its inventory system.

(5) Amortization method of low-value consumables and packaging materials

Low-value consumables are amortized by one-off amortization method when they arereceived; packaging materials are amortized by one-off amortization method when they arereceived.

14. Non-current assets or disposal groups held for sale

(1) Recognition standards and accounting method treatment for Held-for-sale assets and

disposal group

A non-current asset or disposal group is classified as held for sale when its carrying amountwill be recovered principally through a sale transaction rather than through continuous use. Thefollowing conditions need to be simultaneously met to be classified as held for sale: a non-current asset or to-be-disposed portfolio can be sold immediately under the current conditions

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based on the practice of selling such asset or to-be-disposed portfolio in similar transactions;the Company has already decided on the sale plan and obtained confirmed purchasecommitment; the sale is scheduled to be completed within one year. Among them, a DisposalPortfolio refers to a group of assets that will be disposed of as a whole through sale or otherapproaches in a transaction, and the liabilities directly associated with these assets transferredalong with the assets in transaction. If the portfolio of assets or group of portfolios of assets isallocated goodwill acquired in business merger in accordance with Accounting Standards forBusiness Enterprises No. 8 - Asset Impairment, the Disposal Portfolio shall include thegoodwill allocated to it.

In the event that the book value of a non-current asset or to-be-disposed portfolio that hasbeen designated as held-for-sale category is higher than the net amount of fair value less salesexpenses when the non-current asset or to-be-disposed portfolio is initially measured ormeasured on the balance sheet date, the book value shall be to the net amount of fair valueminus sales expenses, and the written-down amount shall be recognized as asset impairmentloss and included in current period profit or loss. The provision for impairment loss of the held-for-sale asset shall be accrued. For a Disposal Portfolio, the confirmed impairment loss shalldeduct the book value of the goodwill in the Disposal Portfolio, then deduct the book value ofthe non-current assets determined by the measurement on a pro-rata basis in accordance withthe applicable Accounting Standards for Business Enterprises No. 42 held-for-sale non-currentassets, Disposal Portfolio and Termination of Operations (hereinafter referred to as the “Guidefor Held-For-Sale”). In the event of an increase of the book value of the held-for-sale DisposalPortfolio minus sales expenses on the subsequent the balance sheet date, the amount previouslywritten down shall be recovered and be reversed within the mount of the asset impairment lossrecognized in the non-current assets measured by the measurement “Guide for Held-For-Sale”after being classified as held for sale asset, the reversal amount shall be included in the currentperiod profit or loss, and the book value of all non-current assets (except for goodwill)determined by the measurement on a pro-rata basis in accordance with the applicable “Guidefor Held-For-Sale” shall be increased on a pro-rata basis. The book value of the goodwill thathas been deducted and the impairment loss of the assets recognized before the classification ofthe held-for-sale non-current assets in accordance with the applicable “Guide for Held-For-Sale”shall not be reversed.

In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio,there is no accrual or amortization for depreciation, and the interest from and other expenses

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from the liabilities in held-for-sale Disposal Portfolio shall still be recognized.

When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category, non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category by the Company or the non-current asset will be removed from the Held-For-Sale Disposal Portfolio, and be measured based on one of the following two values, whicheveris lower: (1) The book value before being classified as held-for-sale category adjusted based onthe depreciation, amortization or impairment that should have be confirmed if it is not classifiedas held-for-sale category; (2) recoverable amount.

(2) Standards for Determining and Methods for the Presentation of Discontinued

Operations.

A component of an entity that either has been disposed of or is classified as held for saleand:

a) represents a separate major line of business or geographical area of operations,

b) is part of a single co-ordinated plan to dispose of a separate major line of business orgeographical area of operations or

c) is a subsidiary acquired exclusively with a view to resale.

Net profit from continuing operation and Net profit from discontinued Operation are addedunder the Item Net Profit of the Profit and Loss Statement, a single amount in the statement ofcomprehensive income comprising the total of:i) the post-tax profit or loss of continuingoperation and discontinued operations. Profit and Loss from the discontinued operation shalllisted as Discontinued Operation Profit and Loss, which comprises of the entire reporting period,not only recognized as the reporting period after the termination of the operation.

15. Long-term equity investment

The long-term equity investment refers to in this part refers to the long-term equityinvestment that the Company has control, joint control or significant influence on the investedentity. The long-term equity investment of the Company that does not have control, joint controlor significant impact on the investee shall be accounted as a financial asset measured at fairvalue with its changes included into the current profits and losses. Among them, if it is non-transactional, the Company may choose to designate it as a financial asset measured at fairvalue and its changes are included in the accounting of other comprehensive income at the time

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of initial recognition. For details of its accounting policies, please refer to Note Ⅲ, 11“Financial Instruments".

Joint control refers to the control that the Company shares with other party/parties for anarrangement in accordance with relevant agreements, and relevant activities of the arrangementcan only be decided based on the consensus of all parties sharing the control rights beforemaking a decision. Significant Influence refers to power of the Company to participate in thedecision-making of the financial and operating policies of the investee, but the Company cannotcontrol or jointly control the development of these policies with other parties.

(1) Determination of investment cost

For a long-term equity investment obtained from a combination of businesses under thesame control, the apportioned share of the book value in the final controller's consolidatedfinancial statements on the combination date in accordance with the shareholders' equity shallbe the initial investment cost of the long-term equity investment. The capital reserve shall beadjusted subject to the difference between the initial investment cost of the long-term equityinvestment and the cash paid, the non-cash assets transferred, and the book value of the debtsassumed; if the capital reserve is insufficient for offsetting, the retained earnings shall beadjusted. Where the equity securities are issued as merger consideration, the apportioned shareof the book value in the final controller's consolidated financial statements on the combinationdate in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity investment, and the total par value of the issued shares is taken as the share capital.The capital reserve shall be adjusted subject to the difference between the initial investmentcost of the long-term equity investment and the total par value of the shares issued; if the capitalreserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the equityof combined parties under the same control is obtained through multiple transactions and abusiness combination under the same control is formed finally, it shall be treated differentiallybased on whether it is a “package deal”: if it belongs to a “package deal”, all transactions willbe treated as a transaction that obtains control. If it is not a “package deal”, the apportionedshare of the book value in the final controller's consolidated financial statements on thecombination date in accordance with the shareholders' equity shall be the initial investment costof the long-term equity investment. The capital reserve shall be adjusted subject to thedifference between the initial investment cost of the long-term equity investment and the sumof the book value of long-term equity investment before combination date and the book valueof the new consideration for the new share on the combination date. If the capital reserve is

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insufficient for offsetting, the retained earnings shall be adjusted. The equity investments thatare held prior to the combination date and are recognized with equity recognized or as available-for-sale financial asset as other comprehensive income will not be given accounting treatmentfor the moment.For a long-term equity investment obtained from a combination of businesses not underthe same control, the initial investment cost of the long-term equity investment shall be basedon the combination cost on the purchase date. The combination cost includes the assets paid bypurchaser, the liabilities incurred or assumed, and the sum of the fair value of issued equitysecurities. Where the equity of combined parties not under the same control is obtained throughmultiple transactions and a business combination under the same control is formed finally, itshall be treated differentially based on whether it is a “package deal”: if it belongs to a “packagedeal”, all transactions will be treated as a transaction that obtains control. If it is not a “packagedeal”, the initial investment cost of the long-term equity investment calculated by the costmethod shall be calculated based on the sum of the book value of the equity investment in theoriginal holder and the new investment cost. The original share holding that measured usingequity method, the relevant other comprehensive income does temporarily not conductaccounting treatment.

Intermediary expenses such as for auditing, legal services, assessment and other relatedexpenses incurred by a combining party or a purchaser for business combination shall berecognized in current period profit or loss when incurred.

The equity investments other than formed by business combination shall be initiallymeasured at cost. The cost will be determined based on the following amount according todifferent methods of the acquisition of long-term equity investment: the purchase price in cashactually paid by the Company; the fair value of the equity securities issued by the Company,the value agreed in relevant investment contract or agreement; the fair value or original bookvalue of the assets exchanged in non-monetary asset exchange transaction; the fair value of thelong-term equity investment itself. Any expenses, taxes and other necessary expenses directlyrelated to the acquisition of long-term equity investments shall also be included in the cost ofinvestment. The cost of long-term equity investment for the additional investment that can exertsignificant influence on investee or implement joint control but does not constitute control shallbe the sum of the fair value of the originally held equity investment recognized in accordancewith the Accounting Standards for Business Enterprises No.. 22 – Recognition andMeasurement of Financial Instruments and the cost for new investment.

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(2) Follow-up measurement and confirmation methods for profit and loss

The Equity Method shall be used to account for long-term equity investments that havejoint control over the invested entity (except for those constituting joint operators) or havesignificant impact on the invested entity. In addition, the company's financial statements usethe Cost Method to account for long-term equity investments, which can control the long-termequity investment of the investee.

① Long-term equity investment based on Cost Method

When accounting with Cost Method, long-term equity investment is priced at the initialinvestment cost, and the cost of the long-term equity investment is adjusted by adding orrecovering the investment. Except for the actual payment at the time of obtaining investmentor the cash dividends or profits included in the consideration but not yet issued, the currentinvestment income shall be recognized according to the cash dividends or profits declared bythe investee.

② Long-term equity investment accounted for by Equity Method

When accounting with Equity Method, if the initial investment cost of a long-term equityinvestment is greater than the fair value share of the identifiable net assets of the investee wheninvesting, and the initial investment cost of the long-term equity investment shall not beadjusted; if the initial investment cost is less than the fair value share of the identifiable netassets of the investee when investing, the difference shall be included in the current profit andloss, and the cost of the long-term equity investment shall be adjusted

When accounting with Equity Method, the investment income and other comprehensiveincome are recognized separately according to the shares of the net profit or loss and othercomprehensive income that should be enjoyed or shared, and the book value of the long-termequity investment should be adjusted at the same time. The book value of long-term equityinvestment is reduced accordingly by calculating the share that should be enjoyed according tothe profit or cash dividend declared by the investee. The book value of long-term equityinvestment shall be adjusted and included in the capital reserve for other changes in the owner'srights and interests of the invested entity other than the net profit and loss, other comprehensiveincome and profit distribution. When confirming the share of the net profit and loss of theinvestee, the net profit of the investee shall be adjusted and confirmed on the basis of the fairvalue of the identifiable assets of the investee at the time of investment. If the accountingpolicies and periods adopted by the invested entity are inconsistent with the Company, the

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financial statements of the invested entity shall be adjusted in accordance with the accountingpolicies and periods of the Company, and the investment income and other comprehensiveincome shall be confirmed accordingly. For the transactions between the Company and theassociates and joint ventures, the assets invested or sold do not constitute a business, and theunrealized gains and losses from internal transactions are offset against the portion of theCompany that is attributable to the proportion of the shares, on this basis. investment profit andloss should be confirmed. However, the unrealized internal transaction losses incurred by theCompany and the investee are not included in the impairment losses of the transferred assets.Where the assets invested by the Company into a joint venture or an associates constitute abusiness, if the investor obtains long-term equity investment but does not control, the fair valueof the invested business shall be deemed as the initial investment cost of the new long-termequity investment, and the difference between the initial investment cost and the book value ofthe invested business is fully recognized in the current profits and losses. If the assets sold bythe Company to a joint venture or an associate that constitute a business, the difference betweenthe consideration value obtained and the book value of the business shall be fully recognized inthe profits and losses of the current period.

When confirming the net loss that incurred by the investee should be shared, the bookvalue of the long-term equity investment and other long-term equity that substantiallyconstitutes the net investment of the investee are reduced to zero. In addition, if the Companyhas an obligation to bear additional losses to the investee, the estimated liabilities shall berecognized according to the estimated obligations and included in the current investment losses.If the investee achieves net profit in the following period, the Company shall resumerecognizing the share of income after making up for the unrecognized share of loss.For the long-term equity investment in the joint ventures and associates held by theCompany for the first time before the implementation of the new accounting standards, if thereis a debit balance of equity investments related to the investment, the current profits and lossesshall be accounted for by the straight-line amortization of the original remaining period.

(3) Acquisition of Minority Equity

In the preparation of the consolidated financial statements, if the difference between thelong-term equity investment added by purchasing minority shares and the net assets share thatshould be continuously calculated by the subsidiary company from the purchase date (or theconsolidation date) is calculated according to the proportion of newly added shares, the retained

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earnings shall be adjusted; and if the capital reserve is insufficient to offset, the retainedearnings shall be adjusted.

(4) Disposal of long-term equity investment

In the consolidated financial statements, the parent company partially of disposes of thelong-term equity investment of the subsidiary without losing control, the difference of thecorresponding net assets in the subsidiary between the disposal price and the disposal of thelong-term equity investment is included in the shareholders' equity. it shall be treated inaccordance with the relevant accounting policies described in “Notes on the preparation ofconsolidated financial statements” in Note Ⅲ.7 .For the disposal of long-term equity investment in other cases, the difference between thebook value of the disposed equity and the actual acquisition price shall be included in the currentprofits and losses.If the long-term equity investment is accounted for by equity method, the remaining equityafter disposal is still accounted for by equity method, when disposing, the other comprehensiveincome which were originally included in shareholder's rights and interests shall be accountedfor on the same basis as the assets or liabilities directly disposed of by the investee. The owner'sequity recognized as a result of changes in the owner's equity of the investee other than netprofit or loss, other comprehensive income and profit distribution, it should be carried forwardto the current profit and loss

For the long-term equity investment accounted by Cost Method, the remaining equity isstill accounted by Cost Method after disposal, other comprehensive income that recognized byequity method accounting or financial instrument recognition and measurement criteriaaccounting before obtaining control over the investee shall be accounted for on the same basisas the assets or liabilities directly disposed of by the investee, and shall be settled to the currentprofit and loss in proportion. Changes of the net assets of investee in the owner's equity otherthan net profit or loss, other comprehensive income and profit distribution 's that recognized byequity method shall be settled to the current profit and loss in proportion.

Where the Company loses control over the investee due to disposal of part of its equityinvestment, when preparing individual financial statements, if the remaining equity afterdisposal can exercise joint control or exert significant influence on the investee, it shall beaccounted for by equity method instead, and the remaining equity shall be adjusted byaccounting by equity method when it is deemed to be acquired. If the remaining equity after

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disposal cannot be jointly controlled or exerts significant influence on the investee, it shall beaccounted for according to the relevant provisions of the financial instrument recognition andmeasurement criteria, and the difference between the fair value and the book value on the dateof loss of control. It is included in the current profit and loss. Before the Company obtainscontrol over the investee, other comprehensive income recognized by equity method accountingor financial instrument recognition and measurement criteria is used to directly dispose of therelevant assets with the investee, accounting treatment based on the same basis as the investeedirectly disposes of related assets or liabilities when the control of the investee is lost,Accounting is treated on the same basis as the liabilities. Changes in the owner's equity otherthan net profit or loss, other comprehensive income and profit distribution of the investee's netassets recognized by the equity method are carried forward to the current profit or loss whenthe control of the investee is lost. Among them, the remaining equity after disposal is accountedfor using the equity method. Where the remaining equity after disposal is accounted for byequity method, other comprehensive income and other owner's equity should be settled byproportion. If the remaining equity is accounted for using financial instrument recognition andmeasurement standard, all of other comprehensive income and other shareholder’s equityshould be settled.

If the Company loses its joint control or significant influence on the investee due to thedisposal of part of the equity investment, the remaining equity after disposal shall be accountedfor according to the financial instrument recognition and measurement criteria, and thedifference between the fair value and the book value on the date of loss of joint control orsignificant influence is recognized in the current profit or loss. The other comprehensive incomerecognized in the original equity investment by the equity method is accounted for on the samebasis as the investee's direct disposal of related assets or liabilities when the equity method isterminated, Owner's equity recognized as a result of changes in other owners' equity other thannet profit or loss, other comprehensive income and profit distribution of the investee should betransferred to current investment income when terminating the equity methodThe Company disposes of the equity investment in the subsidiaries step by step throughmultiple transactions until the loss of control. If the above-mentioned transactions are part of apackage transaction, the transactions are treated as a transaction dealing with the equityinvestment of the subsidiary and losing control. The difference between the book value of eachlong-term equity investment corresponding to the disposal price and the disposal of the equitybefore loss of control is first recognized as other comprehensive income, and when the control

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is lost, it is transferred to the current profit and loss of loss of control.

16. Investment Property

Investment Property refers to property held for the purpose of earning rent or capitalappreciation, or both, including land use rights that have been leased, land use rights that areheld and prepared for transfer after appreciation, and buildings that have been rented.Investment property is initially measured at cost. The expenses related to investment property,if the economic benefits related to this asset are highly probable to flow into the company andthe cost can be measured reliably, then the expense will account for as the cost of investmentproperty. Other expenses are accounted for in profit and loss when incurred.

The Company adopts the cost model to conduct subsequent measurement of investmentproperty and depreciation or amortization according to the policy consistent with the buildingor land use rights.

For details of the impairment test method and impairment provision method of property,please refer to Note Ⅲ. 23 “Long-Term Asset Impairment”.

When the self-use property or inventory is converted into investment property orinvestment property is converted into self-use property, the book value before conversion isused as the recorded value after conversion.

When the use of investment property is changed to self-use, the investment property isconverted into fixed assets or intangible assets from the date of change. When the use of self-use property changes to earn rent or capital appreciation, the fixed assets or intangible assetsare converted into investment property from the date of change. In the case of investmentproperty measured by the cost model when the conversion occurs, the book value beforeconversion is used as the entry value after conversion; if it is converted into investment propertymeasured by the fair value model, the fair value of the conversion date is used as the entry valueafter conversion.

When an investment real estate is disposed of, or permanently withdrawn from use and isnot expected to obtain economic benefits from its disposal, the confirmation of the investmentreal estate shall be terminated. Disposal income from the sale, transfer, retirement or damageof investment properties is charged to the current profit and loss after deducting its book valueand related taxes and fees.

17. Fixed Assets

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(1) Confirmation conditions for fixed assets

Fixed Assets refer to tangible assets held for the purpose of producing goods, providinglabor services, renting or operating management, and having a service life of more than onefiscal year. Fixed assets are recognized only when the economic benefits associated with themare likely to flow into the Company and their costs can be reliably measured. Fixed assets areinitially measured at cost and taking into account the impact of projected abandonment costs.

(2) Depreciation methods for various types of fixed assets

Fixed assets are depreciated over their useful lives using the straight-line method from themonth following the scheduled availability. The depreciation period, estimated net residualvalue rate and annual depreciation rate of each category of fixed assets are as follows:

Category

DepreciationMethod

Depreciationperiod (Year)

Net salvagerate(%)

Annual depreciationrate (%)Buildings

straight-linedepreciation

8-50 5 1.90— 11.88Machinery equipment

straight-linedepreciation

5-28 4、5 3.39—19.20Transport facility

straight-linedepreciation

5-10 4、5 9.50—19.20Electronic equipment

straight-linedepreciation

3-10 4、5 9.50—32.00Office equipment

straight-linedepreciation

3-10 4、5 9.50—32.00Other equipment

straight-linedepreciation

5-28 4、5 3.39—19.20

The estimated net residual value refers to the expected state after the estimated useful lifeof the fixed assets has expired and is at the end of its useful life. The amount currently obtainedby the Company from the disposal of the assets after deducting the estimated disposal expenses.

(3) Impairment test method and Impairment provision method for fixed assets

For details of Impairment test method and impairment provision method for fixed assets,

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please refer to Note Ⅲ. 22 “Long-Term Asset Impairment”.

(4) Recognition basis and valuation method of fixed assets acquired by finance lease

A finance lease is a lease that transfers substantially all the risks and rewards associatedwith ownership of an asset, and its ownership may or may not be transferred. If it is reasonableto determine the ownership of the leased asset at the expiration of the lease term, thedepreciation shall be calculated within the useful life of the leased asset; If it is not reasonableto determine the ownership of the leased asset at the expiration of the lease term, depreciationshall be calculated within a relatively short period of the lease term and the service life of theleased assets.

(5) Others

The subsequent expenses related to fixed assets, if the economic benefits related to thefixed assets are likely to flow in and their costs can be reliably measured, are included in thecost of fixed assets and the book value of the replaced part should be terminated. Thesubsequent expenditures other than mentioned as above are recognized in profit or loss in theperiod in which they are incurred.

The fixed asset is derecognized when the fixed asset is in disposal or is not expected togenerate economic benefits by using or disposal. The difference between the disposal incomefrom the sale, transfer, retirement or damage of the fixed assets less the carrying amount andrelated taxes is recognized in profit or loss for the current period.

The Company reviews the useful life, estimated net residual value and depreciationmethod of fixed assets at least at the end of the year, and changes as an accounting estimate ifchanges occur.

18. Construction in progress

The cost of construction in progress is determined based on actual project expenditure,including various project expenditures incurred during the construction period, capitalizedborrowing costs before the project reaches the expected usable status, and other relatedexpenses. Construction in progress is carried forward to fixed assets when it is ready for itsintended use.

For details of the impairment test method and impairment provision method forconstruction in progress, please refer to Note Ⅲ. 22 “Long-Term Asset Impairment”.

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19. Borrowing Costs

Borrowing costs include interest on borrowings, amortization of discounts or premiums,ancillary expenses, and exchange differences arising from foreign currency borrowings.Borrowing costs directly attributable to the acquisition, construction or production of assetseligible for capitalization, capitalization is began when asset expenditures have occurred,borrowing costs have occurred, and the acquisition, construction or production activitiesnecessary to bring the assets to the intended usable or saleable state have begun. Andcapitalization is stopped when the assets under construction or production that meet thecapitalization conditions are ready for their intended use or saleable status. The remainingborrowing costs are recognized as an expense in the period in which they are incurred.The interest expenses actually incurred in the current period of special borrowings shallbe capitalized after subtracting the interest income from the unused borrowing funds depositedinto the bank or the investment income obtained from the temporary investment. For the generalborrowings, according to the accumulated asset expenditures exceed the special borrowings.The capitalization amount is determined by multiplying the weighted average of whichaccumulated asset expenditure exceeds the asset expenditure of the special borrowing portionby the capitalization rate of the general borrowings used. The capitalization rate is determinedbased on the weighted average interest rate of general borrowings.

During the capitalization period, the exchange differences of foreign currency specialborrowings are all capitalized; the exchange differences of foreign currency general borrowingsare included in the current profit and loss.

Assets eligible for capitalization refer to assets such as fixed assets, investment propertyand inventories that require a substantial period of acquisition, construction or productionactivities to achieve the intended use or sale status.

If the assets eligible for capitalization are interrupted abnormally during the acquisition,construction or production process and the interruption period lasts for more than 3 months, thecapitalization of the borrowing costs shall be suspended until the acquisition, construction orproduction of the assets resumes.

20. Right-of-use assets

Right-of-use assets of the Group mainly consist of buildings, power generation andtransmission equipment, plant, machinery and equipment, motor vehicles, furniture and fixtures

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and others.

(1) Initial accountings

At the commencement date of the lease, the Group recognizes the right to use the leasedassets during the lease term as a right-of-use asset, including: the initial measurement amountof the lease liability; the amount of lease payment paid on or before the beginning of the leaseterm, the amount of lease incentive already enjoyed shall be deducted if there is a lease incentive;initial direct expenses incurred by the lessee; the costs that the lessee is expected to incur inorder to dismantle and remove the leased asset, restore the leased asset to the site or restore theleased asset to the state agreed upon in the lease terms. The right-of-use assets are depreciatedon a straight-line basis subsequently by the Group. If the Group is reasonably certain that theownership of the underlying asset will be transferred to the Group at the end of the lease term,the Group depreciates the asset from the commencement date to the end of the useful life of theasset. Otherwise, the Group depreciates the assets from the commencement date to the earlierof the end of the useful life of the asset or the end of the lease term.

The company recognizes and measures the above costs under Item 4 in accordance withthe Accounting Standards for Enterprises No.13–Contingencies.

(2) Subsequent accounting

The Company accursed the right-of-use assets according to the Accounting Standards forEnterprises NO.4-Fixed Assets. Commencement from the date of lease, the Company shallaccrue the right-of-use assets. Generally the right-of-use assets are accrued at the start of thelease date, the expenses of depreciation accrued shall include into relevant asset cost or profitand loss in the current period based on the purpose of right-of-use assets. While recognizingthe method of right-of-use assets, the Company shall make decisions on the economic benefitof forecast consumption mode related to the right-of-use assets, accrues the deprecation bystraight-line method. When the Company recognize the depreciation period of right-of-useassets, maturity of lease period can be determined in a reasonable and well-grounded manneron the acquisition of the right-of-use assets, accursed the deprecation in its remaining servicelife. If the right-of-use lease assets could not be determined reasonably while the service life ismature, depreciation is applied with the short period of time between the lease term and theremaining useful life of the lease asset.

If there is impaired right-of-use assets, the Company shall accrue the subsequentdeprecation based on the book value of right-of-use assets after deducting the loss of

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impairment.The Company determined not to recognized the right-of-use assets and lease liabilities onthe short-term lease (lease term not exceeding 12 months), and recognizes the relevant leasepayment during the respective lease term in the current profit and loss or cost of assets relevantin straight line method. Impairment test method and the provision method for diminution invalue of right-of-use assets are detailed in Note III 23 “Long-Term Asset Impairment”

21. Intangible Assets

Intangible assets refer to identifiable non-monetary assets without physical form owned orcontrolled by the Company.Intangible assets are initially measured at cost. Expenditure related to intangible assets isincluded in the cost of intangible assets if the relevant economic benefits are likely to flow tothe Company and its costs can be measured reliably. However, the intangible assets acquiredthrough business combination not involving enterprises under common control should bemeasured at fair value separately as intangible assets when their fair values can be reliablymeasured.The acquired land use rights are usually accounted for as intangible assets. The relatedland use rights and building construction costs of self-developed and constructed buildings areaccounted for as intangible assets and fixed assets, respectively. In the case of purchased housesand buildings, the relevant price is distributed between the land use rights and the buildings. Ifit is difficult to allocate them reasonably, all of them are treated as fixed assets.

(1) Basis for determining the service life, the estimate thereof, and amortization methods

and the procedures for reviewing their service life

When recognizing the service life of the intangible assets, being sourced from anycontractual right or other statutory rights, its service life shall not exceed the life of contractualrights or other statutory rights. As for the intangible assets not specified either under the contractor legal regulations, the company combined various situations, such as employing relevantprofessional persons to undergo the justification or make comparison with the situation of thesame industry and the historical experience of the Company, determining the future economicbenefit service life which is brought by the intangible assets. If the efforts are made, but couldnot recognized reasonably that the intangible asset shall bring the economic benefit service lifefor the Company, then shall treat this as uncertain service life of the intangible asset.

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Since the intangible assets with limited useful life are available for use, the original valueminus the estimated net residual value and the accumulated amount of impairment reserve shallbe amortized by the straight-line method during their expected service life. Intangible assetswith uncertain service life shall not be amortized.Among them, the useful life and amortization method of intellectual property are asfollows:

Item Amortization period (year) Amortization methodTrademark 20 Straight-line methodSoftware 3-10 Straight-line methodLand-use rights 50 Straight-line method

At the end of the period, the useful life and amortization methods of intangible assets withlimited useful life are reviewed, and if any change occurs, it is treated as a change of accountingestimate. In addition, the useful life of intangible assets with uncertain service life is alsoreviewed. If there is evidence that the period for which the intangible assets bring economicbenefits to the enterprise is foreseeable, the useful life of intangible assets is estimated andamortized according to the amortization policy of intangible assets with limited useful life

(2) Research and development expenditure

The company's expenditure for internal research and development project is divided intoresearch phase expenditure and development phase expenditure.

Expenditures for the research phase shall be recognized in profit or loss when incurred.

Expenditures for the development phase that meet the following conditions shall berecognized as intangible assets, and expenditures in the development stage that fail to meet thefollowing conditions are included in current profit and loss:

a. It is technically feasible to complete the intangible asset to enable it to be used or sold.

b. The intent to complete the intangible asset and use or sell it;

c. The way in which intangible assets generate economic benefits, including the ability toprove that the products produced from the intangible assets having a market or the intangibleassets having a market, and the intangible assets will be used internally, which can prove itsusefulness;

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d. sufficient technical, financial resources and other resources for supporting thedevelopment of the intangible assets and the ability to use or sell the intangible assets.e. Expenditure attributable to the development phase of the intangible asset can be reliablymeasured.If it is impossible to distinguish the expenditures between research phase and developmentphase, all research and development expenditures incurred will be included in the current profitand loss.

(3) Impairment test method and Impairment provision method for intangible assets

For details of the impairment test method and impairment provision method, please referto Note Ⅲ. 22 “Long-Term Asset Impairment”.

22. Long-term assets impairment

For fixed assets, construction in progress, intangible assets with limited useful life,investment property measured by cost model, and non-current non-financial assets such as long-term equity investments in subsidiaries, joint ventures and associates, the Company determineswhether there is any indication of impairment on the balance sheet date. If there is anyindication of impairment, the recoverable amount is estimated and the impairment test is carriedout. Goodwill, intangible assets with uncertain service life and intangible assets that not yetready for use are tested for impairment annually, regardless of whether there is any indicationof impairment.

If the result of the impairment test indicates that the recoverable amount of the asset islower than its book value, the impairment provision is made based on the difference and isincluded in the impairment loss. The recoverable amount is the higher of the fair value of theasset less the disposal expense and the present value of the estimated future cash flow of theasset. The fair value of assets is determined according to the sale agreement price in a fairtransaction. If there is no sales agreement but there is an active market for the asset, the fairvalue is determined according to the buyer's bid for the asset; if there is neither sales agreementnor active market for assets, the fair value of assets shall be estimated based on the bestinformation available. Asset disposal expenses include legal fee, taxes, transportation expensesand direct expenses incurred to make assets saleable. The present value of the estimated futurecash flow of an asset is determined by the appropriate discount rate discounting and theestimated future cash flow generated by the asset during its continuous use and final disposal.

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The asset impairment provision is calculated and confirmed based on individual assets. If it isdifficult to estimate the recoverable amount of an individual asset, the recoverable amount ofthe asset is determined by the asset group which the asset belongs to. An asset group is thesmallest portfolio of assets that can generate cash inflows independently.The book value of the goodwill listed separately in the financial statements is amortizedinto asset groups or portfolios that are expected to benefit from the synergies of businesscombinations when impairment tests are conducted. The test results show that the recoverableamount of the asset group or portfolio containing the assessed goodwill is lower than its bookvalue, the corresponding impairment losses should be confirmed. The amount of impairmentloss is first deducted from the book value of the goodwill amortized to the asset group orportfolio, and then deducted proportionally from the book value of other assets according to theproportion of the book value of assets other than goodwill in the asset group or portfolio.

Once the above asset impairment loss is confirmed, it will not be reversed to the part wherethe value is restored in the future period.

23. Long-term Deferred Expenses

The long-term deferred expenses are all expenses that have occurred but shall be borne bythe reporting period and subsequent periods with amortization period of more than one year.The company's long-term deferred expenses mainly include lease of land use right andrenovation costs of factory building. Long-term deferred expenses are amortized on a straight-line basis over the estimated benefit period. If the long-term amortized expense item cannotbenefit the company in subsequent accounting periods, the amortized value of the item that hasnot yet been amortized will be transferred to the current profit or loss.

24. Employee Compensation

The Company's employee compensation mainly includes short-term employeeremuneration, Post-employment Benefits, Termination Benefits and benefits for other long-term employee. Among them:

Short-term employees remuneration mainly includes wages, bonuses, allowances andsubsidies, employee welfare fees, medical insurance premiums, maternity insurance premiums,work injury insurance premiums, housing fund, labor union funds, employee education funds,and non-monetary benefits. The Company recognizes the actual short-term employee'sremuneration as a liability in the accounting period in which employees provide services to theCompany and recognizes them in profit or loss or related asset costs. Non-monetary benefits

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are measured at fair value.

Post-employment Benefits mainly include basic retirement security, unemploymentinsurance, and annuities. The Post-employment Benefit Scheme includes a DefinedContribution Plan and a Defined Benefit Plan. If a Defined Contribution Plan is adopted, thecorresponding amount of the deposit shall be included in the relevant asset cost or current profitand loss as incurred. (1) The Defined Contribution Plan is recognized as a liability based on afixed fee paid to an independent fund and is included in the current profit and loss or relatedasset costs; (2) The Defined Benefit Plan is accounted for using the expected cumulativebenefits unit method Specifically, the Company will convert the welfare obligation arising fromthe Defined Benefit Plan into the final value of the departure time according to the formuladetermined by the expected cumulative benefits unit method; then it is attributed to theemployee's in-service period and is included in the current profit and loss or related asset cost.If the labor relationship with the employee is terminated before the employee's laborcontract expires, or if the employee is encouraged to accept the reduction voluntarily, whencannot withdrawing unilaterally the dismissal benefits provided by the termination of the laborrelationship plan or the reduction proposal, and when confirming the costs associated with therestructuring involving the payment of the dismissal benefits, whichever is earlier, theCompany will recognize the employee compensation liabilities arising from the dismissalbenefits, and included in the current profit and loss. However, if the dismissal benefits are notexpected to be fully paid within 12 months after the end of annual reporting period, they shallbe treated in accordance with other long-term employee compensations.

The internal retirement plan for employees shall be treated in the same way as the above-mentioned dismissal benefits. The company will pay the internal retired staff the salary and thesocial insurance premiums from the employee's lay-off to normal retirement, and will includein the current profit and loss (dismissal benefits) when the conditions of the estimated liabilitiesare met.

If the other long-term employee benefits provided by the Company to the employees arein line with the Defined Contribution Plan, they shall be accounted for Defined ContributionPlan, and otherwise accounted for the Defined Benefit Plan.

25. Estimated liabilities

When the obligations related to the contingencies meet the following conditions, they arerecognized as contingent liabilities: (1) The obligation is the present obligation assumed by the

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Company; (2) The performance of this obligation is likely to result in the outflow of economicbenefits; (3) The amount of the obligation can be reliably measured.

On the balance sheet date, taking into account factors such as risks, uncertainties and timevalue of money related to contingencies, the estimated liabilities are measured in accordancewith the best estimate of the expenditure required to perform the relevant current obligations.

If all or part of the expenses required to discharge the estimated liabilities are expected tobe compensated by the third party, the compensation amount will be separately recognized asan asset when it is basically determined to be received, and the confirmed compensation amountdoes not exceed the book value of the estimated liabilities.

(1) Loss Contract

A loss contract is a contract in which the cost of fulfilling a contractual obligation willinevitably occur more than the expected economic benefit. If the contract to be executedbecomes a loss contract, and the obligation arising from the loss contract satisfies the conditionsfor the recognition of the above-mentioned estimated liabilities, the portion of the contract'sestimated loss that exceeds the recognized impairment loss (if any) of the contracted asset isrecognized as the estimated liability.

(2) Restructuring Obligations

For restructuring plans that are detailed, formal, and have been announced to the public,the amount of the estimated liabilities are determined based on the direct expenses related tothe reorganization, subject to the recognition conditions of the aforementioned estimatedliabilities. For the restructuring obligation to the part of business sold, the obligation related tothe reorganization is confirmed only when the company promises to sell part of the business(that is, when the binding sale agreement is signed).

26. Share-based Payments

(1) Accounting Treatment of Share-based Payments

A share-based payment is a transaction that grants an equity instrument or assumes aliability determined based on an equity instrument in order to obtain services from employeesor other parties. Share-based Payments include equity-settled share payment and cash-settledshare payment.

① Equity-settled Share Payment

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The equity-settled share payment in exchange for the services from employee is measuredat the fair value of the granting of employees' equity instruments at the grant date. If the fairvalue is vested in the completion of the waiting period of service or the fulfillment of therequired performance conditions, during the waiting period, the amount of the fair value iscalculated by the straight-line method into the relevant costs or expenses based on the bestestimate of the number of vesting equity instruments; Or If the vesting right is grantedimmediately after the grant, the calculation of the amount of the fair value is included in therelevant cost or expense on the grant date, and the capital reserve is increased accordingly.On each balance sheet date during the waiting period, the Company makes the bestestimate based on the latest information on the changes in the number of employees with vestingrights and corrects the number of equity instruments that are expected to be vested. The impactof the above estimates shall be included in the current related costs or expenses, and the capitalreserve is adjusted accordingly.

In the case of equity-settled share-based payments in exchange for other parties' services,if the fair value of other parties' services can be reliably measured, the fair value of otherservices shall be measured at the fair value on the date of acquisition; If the fair value of theother party's services cannot be measured reliably, the fair value shall be measured at the fairvalue of the equity instrument at the date the service is acquired, and is included in the relevantcost or expense, which increases the shareholders' equity accordingly.

② Cash-settled Share Payment

The cash-settled share payment is measured at the fair value of the liabilities determinedby the Company based on shares or other equity instruments. If the vesting right is availableimmediately after the grant, the relevant costs or expenses shall be included on the date of grant,and the liabilities shall be increased accordingly; if vesting right is available after the service iscompleted within the waiting period or met the required performance conditions, based on thebest estimate of the vesting rights on each balance sheet date of the waiting period, accordingto the fair value of the liabilities assumed by the company, the services obtained in the currentperiod are included in the cost or expense, and the liabilities are increased accordingly.

The fair value of the liabilities shall be re-measured on each balance sheet date andsettlement date before the settlement of the relevant liabilities, and the changes shall be recordedin the profit and loss of the current period.

(2) Relevant Accounting Treatment of share-based payment plan’s modification and

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terminationWhen the Company modifies the share-based payment plan, if the modification increasesthe fair value of the equity instruments granted, the increase in the fair value of the equityinstruments is recognized accordingly. The increase in the fair value of equity instrumentsrefers to the difference between the fair value of the equity instruments before and after themodification. If the modification reduces the total fair value of the share-based payment oradopts other methods that are not conducive to the employee, the service obtained shall continueto be accounted for, as if the change has never occurred, unless the Company cancels some orall of equity instruments.

During the waiting period, if the granted equity instrument is cancelled, the Company willcancel the granted equity instrument as an accelerated exercise, and the amount to be recognizedin the remaining waiting period will be immediately included in the current profit and loss, andthe capital reserve will be recognized. If the employee or other party can choose to meet thenon-vesting conditions but fails to meet the waiting period, the Company will treat it as acancellation of the equity instrument.

(3) Accounting Treatment of Share Payment Transactions between the Company and its

Shareholders or Actual Controllers

In respect of the share-based payment transaction between the company and theshareholders or actual controllers of the company, If one of the settlement enterprise and theservice receiving enterprise is in the company and the other is outside the company, it shall beaccounted for in the consolidated financial statements of the company according to thefollowing provisions:

① If the settlement enterprise settles with its own equity instrument, the share-based

payment transaction shall be treated as equity-settled share-based payment; otherwise, it shallbe treated as a cash-settled share-based payment.

If the settlement enterprise is an investor of a serviced enterprise, it shall be recognized asthe long-term equity investment of the serviced enterprise according to the fair value of theequity instrument at the grant date or the fair value of the liability to be assumed, and the capitalreserve (other capital reserve) or liabilities shall be recognized.

② If the serviced enterprise has no settlement obligation or grants its own employees the

equity instruments, the share payment transaction shall be treated as equity-settled share

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payment; if the serviced enterprise has settlement obligation and grants its employees other thanits own equity instruments, the share payment transaction shall be treated as a cash-settled sharepayment.For the share based payment incurred between companies within the group, if the servicedenterprise and settlement enterprise are not the same, then the payment should be recognizedand measured in their individual financial statements, they should be accounted for using theabove principles

27. Revenue

The term “revenue” refers to the gross inflow of economic benefits arising in the courseof the ordinary activities of an enterprise, which may increase of the shareholder's equities andis irrelevant to the capital of the shareholder. When the company signs a contract, it evaluatesthe contract, identifies the individual performance obligations contained in the contract, anddetermines whether the individual performance obligations are performed within a certainperiod of time or at a certain point of time. When the company has fulfilled all the performanceobligations in the contract, the revenue shall be recognized respectively according to thetransaction price apportioned to the performance obligations. A contract with a customergenerally explicitly states the goods or services that an entity promises to transfer to a customer.The transaction price is the amount of consideration to which an entity expects to be entitled inexchange for transferring promised goods or services to a customer, excluding amountscollected on behalf of third parties.

Generally, the company recognizes the revenue from the sales of goods based on thetransaction price apportioned to the single performance obligation when the customer obtainsthe control right of the relevant goods on the basis of comprehensively considering thefollowing factors: the company has the right to receive payment in respect of the goods orservices currently, that is, the customer has the obligation to pay for the goods currently; thecompany has transferred the legal ownership of the goods to the customer, that is, the customerhas the legal ownership of the goods; The Company has transferred the physical goods of thecommodity to the Customer or the Customer has obtained the qualification of physical goodsright of the commodity. The consideration obtained by the Company in respect of the transferof the commodity is likely to be recovered; Other indications that the customer has taken controlof the commodity.

For the performance obligations performed in a certain period of time, such as the services

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provided, the company adopts the input method to determine the appropriate performanceprogress, and recognizes the revenue according to the performance progress in that period oftime. On the balance sheet date, the company shall recognize the current income according tothe total transaction price of the contract multiplied by the progress of performance minus theaccumulated recognized income. If one of the following conditions is satisfied, it is regarded asthe performance obligation performed during a certain period of time: the Customer obtainsand consumes the economic benefits arising from the performance of the Company at the sametime of the performance of the Company; Customers can control the goods under constructionduring the performance of the contract; The products produced by the Company during theperformance of the Contract are of irreplaceable use, and the Company shall be entitled toreceive payment for the accumulated part of the completed performance so far during the wholeterm of the Contract. Otherwise, the Company recognizes revenue at the point when theCustomer acquires control of the relevant goods or services.

Where the contract contains two or more performance obligations, an entity shall, on thecommencement date of the contract, allocate the transaction price to each performanceobligation identified in the contract on a relative standalone selling price basis. Except when anentity has observable evidence that the entire discount relates to only one or more, but not all,performance obligations in a contract, the entity shall allocate a discount proportionately to allperformance obligations in the contract. Stand-alone selling price refers to the price of the goodsor services sold by the Company to the customer separately. If the stand-alone selling pricecannot be directly observed, the Company shall take into account all relevant informationreasonably available and estimate the stand-alone selling price by observable input values tothe maximum extentAs for the sales with quality guarantee, except for it guarantees the product on sale ofservice meets the designated standards to the customer, providing a single separate service, thisquality guaranteed composes the single performance obligation. Otherwise, the Company shalltreat the accounting method on quality guarantee obligations in accordance with the EnterpriseAccounting Standards No,13- Contingencies.If the contract comprised of significant financing elements, the Company shall recognizesthe amount of payables in cash to determine the trading price based on the assumption thatthe customer obtains the products or service control rights. The difference between the pricestipulated in the contract or agreement and its contract consideration shall be amortized withinthe period of the contract or agreement. through the real interest method. As a practical

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expedient, an entity need not adjust the promised amount of consideration for theeffects of asignificant financing component if the entity expects, at contract inception, that the periodbetween when the entity transfers a promised good or service to the customer and when thecustomer pays for that good or service will be one year or less.

The Company justifies the trading identity is the major responsible person or on behalfbased on whether it has the control right to the product or the service before transferring theproducts or service to the customer. As the major responsible person of the Company, shallrecognizes the revenue based on the total consideration of the amount received or receivable.Otherwise, as the agent of the Company, shall recognizes the revenue based on the expectedright of obtaining the commission or service charge, which is calculated as the totalconsideration on the amount received or receivable deducting the net amount payable to otherrelated parties or recognizes on the amount of commission or proportion etc.The Company received the amount of products sales or service in advance, shallrecognizes it as liabilities in the first, then accounted as revenue upon fulfilling relevantperformance obligations.The Company has transferred the products or service to its clients and has rights to obtainthe considerations (and this rights is obliged to other elements of passing time) listed as thecontractual assets. Contractual assets are accrued the devaluation provision based on theexpected credit loss. The Company has the unconditional rights （only depends on the passingof time） to its customer for obtaining the considerations, listed as item receivables. Theconsideration of amount received or receivable, which is obtained to its customer, shall transferproduct or service obligation to them, listed as contractual liabilities.

The detailed accounting policies related to the major activities of obtaining the revenue ofthe Company

(1) Sales processing

The production and processing sales comprise mainly of sales of oils an oilseeds, food etc.The Company recognized the sales revenue when the amounts received or identificationobtained upon sales, which has been submitted and signed by the customer.

(2) Trading Revenue

If the Company obtained the product control rights from the third party and transferred tothe client, assumed the significant obligations under the transaction of transferring the products

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to the client. i.e. inventory risk, and has rights to determine the price of the products oneself.The identity of the Company under the transaction is the major responsible person, recognizingthe trading revenue based on the expected rights for obtaining the total consideration stipulatedon the contract. The Company made commitment to arrange others to provide specific products,but has no control rights on this before providing the specific products to clients. The identityof the Company under the transaction is agent, recognizing the revenue on the commissionobtained or service amount for arranging others to provide the specific products to clients.

28. Contract costs

Contract cost comprises contract performance cost and contract acquisition cost.The cost incurred by the company for the performance of the contract, which does not fallwithin the scope of other accounting standards for business enterprises other than the incomestandard and meets the following conditions at the same time, is recognized as an asset as thecontract performance cost:

(1) The cost is directly related to a current or expected contract, including direct labor,

direct materials, manufacturing expenses (or similar expenses), costs explicitly borne by thecustomer and other costs incurred solely as a result of the contract;

(2) The cost increases the company's resources for fulfilling its performance obligations

in the future;

(3) The cost is expected to be recovered.

The assets are presented in inventory or other non-current assets according to whether theamortization period has exceeded one normal operating cycle at the time of its initialrecognition.If the incremental cost incurred by the company to obtain the contract is expected to berecovered, it shall be recognized as an asset as the contract acquisition cost. Incremental costrefers to the cost that will not occur if the company does not obtain the contract.The assets related to the contract cost mentioned above shall be amortized at the time ofperformance of the obligation or according to the performance progress on the same basis asthe income recognition of the commodity or service related to the asset and shall be recordedinto the current profit and loss.If the book value of the above assets related to the contract cost is higher than the

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difference between the residual consideration expected to be obtained by the company due tothe transfer of the goods related to the assets and the estimated cost to be incurred for the transferof the relevant goods, the excess part shall be set aside as an impairment provision andrecognized as an impairment loss of the asset.

29. Government grants

Government grant refers to the company's acquisition of monetary and non-monetaryassets from the government free of charge, excluding the capital invested by the government asan investor and enjoying the corresponding owner's rights and interests. Government grantsinclude assets-related grants and revenue-related grants. The company defines the governmentgrant obtained for the purchase and construction of long-term assets or for the formation oflong-term assets in other ways as the government grant related to assets; the remaininggovernment grant is defined as the government grant related to income. If the object of grantsis not specified in government documents, the grants shall be divided into income-relatedgovernment grants and assets-related government grants in the following ways: (1) If thegovernment document clarifies the specific project for which the grant is targeted, theproportion of the expenditure amount of the assets to be formed and the amount of theexpenditures included in the expenses in the budget of the specific project are divided, and theproportion of grant division needs to be reviewed on each balance sheet day and changed ifnecessary. (2) In government documents, if the purpose is expressed only in general terms andno specific project is specified, the grant shall be regarded as a government grant related to theincome. Where a government grant is a monetary asset, it shall be measured according to theamount received or receivable. If the government grants are non-monetary assets, they shall bemeasured at the fair value; if the fair value cannot be obtained reliably, they shall be measuredat the nominal amount. Government grants measured in nominal amounts shall be recognizeddirectly in current profits and losses.The Company usually confirms and measures the government grant according to theamount when it is actually received. However, if there is conclusive evidence at the end of theperiod that the relevant conditions stipulated in the financial support policy can be met and thefinancial support funds are expected to be received, it shall be measured according to theamount receivable. Government grants measured in accordance with the amount receivableshall meet the following conditions at the same time: (1) The amount of the subventionreceivable has been confirmed by the authorized government departments, or can be reasonablycalculated according to the relevant provisions of the formally issued financial fund

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management measures, and there is no significant uncertainty in the amount expected; (2)According to the "Regulations on the Openness of Government Information" that the localfinancial department officially released and in accordance with the provisions of the"Regulations on the Openness of Government Information," the financial support project andits financial fund management measures should be inclusive (any eligible enterprise can applyfor them), rather than being specifically tailored to specific companies; (3) The relevant grantapproval has clearly promised the payment period, and the allocation of the payment isguaranteed by the corresponding budget, so it can be reasonably ensure that it can be receivedwithin the prescribed time limit; (4) Other relevant conditions (if any) to be met in accordancewith the specific circumstances of the Company and the grants.Government grants related to assets are recognized as deferred earnings and are dividedinto current profits and losses in a reasonable and systematic way during the service life of theassets concerned. The government grants related to revenue, which are used to compensate forthe related cost or loss in the subsequent period, shall be recognized as deferred income, andshall be recognized in profit or loss in the period in which the related costs or losses arerecognized; if it is used to compensate the related costs or losses that has occurred, it shall bedirectly recognized in the current profit and loss.It includes government grants related to both assets and income, and different parts areseparately classified for accounting treatment; if it is difficult to distinguish, the whole isclassified as government grants related to income.Government grants related to the daily activities of the Company shall be included in otherincome or cost deductions according to the nature of the economic business; governmentsubsidies unrelated to daily activities shall be included in the non-operating revenues andexpenses.

When the recognized government grants need to be returned, if there are relevant deferredearnings balances, the book balance of related deferred earnings shall be deducted, and theexcess part shall be included in the current profits and losses or the book value of assets shallbe adjusted, otherwise, the book value of assets shall be directly included in the current profitsand losses.The company will obtain preferential policy loans discount in accordance with the financewill be allocated to the loan bank discount funds and the finance will be directly allocated tothe company discount funds in two cases:

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(1) If the finance department allocates the discount interest funds to the lending bank, and

the lending bank provides the loan to the Company at the policy preferential interest rate, theCompany chooses to conduct accounting treatment according to the following methods: theloan amount actually received shall be taken as the entry value of the loan, and the relevantborrowing costs shall be calculated in accordance with the loan principal and the policypreferential interest rate.

(2) If the finance allocates the discount funds directly to the company, the company will

offset the corresponding discount against the relevant borrowing costs.

30. Deferred tax assets/deferred tax liabilities

(1) Current Income Tax

On the balance sheet date, the current income tax liabilities (or assets) formed in the currentand previous periods are measured by the expected amount of income tax payable (or returned)in accordance with the provisions of the Tax Law. The amount of taxable income on whichcurrent income tax expenses are calculated is based on the corresponding adjustment of pre-taxaccounting profits in the reporting period in accordance with the relevant tax laws.

(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities

The difference between the book value of certain assets and liabilities and their tax basis,and the temporary difference between the book value of items that are not recognized as assetsand liabilities but which can be determined as their tax basis according to the tax law, areconfirmed by the balance sheet liability method.

Taxable temporary differences which related to the initial recognition of goodwill and theinitial recognition of an asset or liability arising from a transaction that is neither a businesscombination nor an accounting profit or taxable income (or deductible loss), relevant deferredincome tax liabilities shall not be recognized. In addition, for taxable temporary differencesrelated to investments in subsidiaries, associates and joint ventures, if the Company is able tocontrol the turnaround time of temporary differences, and the temporary difference is unlikelyto be reversed in the foreseeable future, the related deferred income tax liabilities shall not berecognized. Except for the above exceptions, the Company recognizes all other deferred incometax liabilities arising from taxable temporary differences.

Taxable temporary differences which related to the initial recognition of an asset or

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liability arising from a transaction that is neither a business combination nor an accountingprofit or taxable income (or deductible loss), relevant deferred income tax liabilities shall notbe recognized. In addition, for taxable temporary differences related to investments insubsidiaries, associates and joint ventures, if the temporary difference is unlikely to be reversedin the foreseeable future, or the amount of taxable income used to offset the temporarydifference is unlikely to be obtained in the future, the deferred income tax assets concernedshall not be recognized. Except for the above exceptions, the Company recognizes otherdeferred income tax assets that can offset temporary differences, subject to the amount oftaxable income that is likely to be obtained to offset temporary differences.For deductible losses and tax credits that can be carried forward in subsequent years, thecorresponding deferred income tax assets are recognized to the extent that it is probable that thefuture taxable income shall be used to offset the deductible losses and tax credits.On the balance sheet date, the deferred income tax assets and deferred income taxliabilities shall be measured at the applicable tax rates in the period in which the related assetsare recovered or the related liabilities are recovered in accordance with the tax laws.On the balance sheet date, the book value of deferred income tax assets is reviewed. andthe book value of deferred income tax assets is written down if it is likely that sufficient taxableincome will not be available to offset the benefits of deferred income tax assets in the future.When it is possible to obtain sufficient taxable income, the amount written down shall bereversed.

(3) Income tax expenses

Income tax expenses include current income tax and deferred income tax.In addition to recognizing that the current income tax and deferred income tax related toother transactions and matters directly included in shareholder's rights and interests shall berecognized in other comprehensive income or shareholder's rights and interests, and the bookvalue of adjusted goodwill from deferred income tax resulting from the merger of enterprises,the other current income tax and deferred income tax expenses or gains shall be recognized inprofit or loss for the current period.

(4) Offset of Income Tax

When the company has legal rights to settle on a net basis, and intends to settle on a netbasis or acquire assets and pay off liabilities at the same time, the company's current income

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tax assets and current income tax liabilities shall be presented on a net basis after the offset.

When it has the legal right to settle current income tax assets and current income taxliabilities on a net basis, and deferred income tax assets and deferred income tax liabilities arerelated to the income tax levied by the same tax administration department on the same taxpayer or to different tax payers, but in the future, during each important period of deferredincome tax assets and liabilities being reversed, the taxpayer involved intends to settle thecurrent income tax assets and liabilities on a net basis, or acquire assets and pay off liabilitiessimultaneously, the deferred the income tax assets and deferred income tax liabilities of theCompany shall be presented on a net basis after offset.

31. Leasing

On the commencement date of a contract, an enterprise shall assess whether the contractis a lease or includes a lease. Where a party to a contract transfers the right to control the use ofone or more identified assets for a certain period of time in return for consideration, the contractis a lease or includes a lease. To determine whether the right to control the use of identifiedassets within a certain period of time under a contract has been transferred, an enterprise shallassess whether a client in the contract has the right to use almost all of the economic benefitsarising from the use of the identified assets during the period of use, and has the right todominate the use of identified assets during this period of use.

Where a contract concurrently contains multiple separate leases, the lessee and lessor shallsplit the contract and conduct accounting treatment respectively for all separate leases.

Where the following conditions are concurrently met, use of the rights of identified assetsshall constitute a separate lease in a contract:

①A lessee may earn profits from separate use of the assets or joint use with other

resources readily available.

②There is no high dependence or high correlation between the assets and other assets in

the contract.

Where a contract concurrently includes both leased and non-leased parts, the Company, asthe lessee and lessor, shall split the leased and non-leased parts to conduct accounting treatment.

(1) The Company records operating lease business as a lessee.

The main types of leased assets of the company include houses and buildings,

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transportation equipment and land use rights etc.

1) Initial measurement

At the beginning of the lease period, the Company recognizes its right to use the leasedassets during the lease period as a right-of-use asset, recognition of the present value ofoutstanding lease payments as lease liabilities, except short-term and low-value asset leases. Incalculating the present value of the lease payment, the Company uses the interest rate includedin the lease as the discount rate. Where the interest rate included in the lease cannot bedetermined, the Company uses the incremental borrowing rate as the discount rate

The lease period is the irrevocable period during which the Company is entitled to use thelease assets. Where the Company has the option to renew the lease, that is, the right to chooseto renew the lease of the asset, and reasonably determines that the option will be exercised, Thelease period also includes the period covered by the lease renewal option. The Company hasthe option to terminate the lease, that is, the right to terminate the lease of the asset, Providedthat it is reasonably determined that the option will not be exercised, the lease period includesthe period covered by the option to terminate the lease. Where a material event or change withinthe control of the Company occurs and affects whether the Company reasonably determinesthat the appropriate option will be exercised... The Company will determine to exercise theoption of renewing the lease, re-evaluation of the option to purchase or not to exercise theoption to terminate the leas on its reasonability.

2) Subsequent measurement

The Company adopts the straight-line method to depreciate the right to use assets. Whereit is reasonable to determine that the leased assets are to be owned upon expiry of the lease term,the Company shall calculate the leased assets within the remaining useful life of the leasedassets. If the ownership of the leased assets upon expiry of the lease term is unable to bereasonably determined, the Company shall accrue depreciation within a short period of timebetween the lease term and the remaining useful life of the leased assets. The interest expensesof the lease liabilities for each period of the lease term at the discount rate is recognized by theCompany and shall be included into the current profit or loss. Variable lease payments that arenot included in the leasehold liability measure are included in the current profit and loss at thetime of actual incurance.

After commencement of the lease period, when there is a change in the amount ofsubstantial fixed payments and the amount due to which the guarantee balance is expected,changes in indices or ratios used to determine rental payments, where the assessment of

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purchase options, the renewal option or termination option or actual exercise of the optionchanges, the Company re-measures the lease liabilities according to the present value of thechange in lease payments, and adjust the book value of the right to use assets accordingly. Ifthe book value of the right to use assets has been reduced to zero, but the lease liability stillneeds to be further reduced, the Company will record the remaining amount in the current profitor loss.

3) Lease change

Lease modification refers to the modification of the lease scope, lease consideration andlease term beyond the terms of the original contract, including increasing or terminating theright to use one or more leased assets, extending or shortening the lease term specified in thecontract, etc.If the lease changes and the following conditions are met, the Company will account forthe lease change as a separate lease:

① The lease change expands the scope of the lease by adding the right to use one or more

leased assets;

② The increased consideration is equivalent to the separate price for the extended portion

of the lease, adjusted for the circumstances of the contract.

If the lease change is not accounted for as a separate lease, on the effective date of thelease change, the Company redetermines the lease term and discounts the changed leasepayment at the revised discount rate to remeasure the lease liability. In calculating the presentvalue of the lease payment after the change, the Company uses the inherent interest rate of thelease during the remaining lease term as the discount rate; If the inherent interest rate of thelease for the remaining lease term cannot be determined, the Company's incremental borrowingrate on the effective date of the lease change shall be used as the discount rate.

The Company accounts for the impact of the above adjustment of lease liabilities in thefollowing cases:

① If the lease change results in the reduction of the lease scope or the shortening of the

lease term, the Company shall reduce the book value of the right of use assets to reflect thepartial or complete termination of the lease. The Company recognises gains or losses related topartial or complete termination of the lease in profit or loss for the current period.

② For other lease changes, the company shall adjust the book value of the right to use

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assets accordingly

4) Short-term leases and leases of low value assets

The Company will consider a lease for a period not exceeding 12 months and excluding apurchase option as a short-term lease on the commencement date of the lease term; A lease witha lower value when a single leased asset is a new asset is identified as a low-value asset lease.Where the Company subleases or intends to sublease leased assets, the original lease is notdeemed to be a low-value asset lease. The relevant asset cost or current profit or loss isrecognised on a straight-line basis during each period of the lease term, and the contingent rentis recognised in current profit or loss when actually incurred(2)The company records operating lease business as a lessorThe lease commencement date essentially transfers almost all the risks and rewardsassociated with the ownership of the leased asset to finance leases, and all other leases areoperating leases1)Operating lease

The rental income of operating lease shall be recognized as current profit and lossaccording to the straight-line method during each period of the lease period. The larger initialdirect expenses are capitalized when occurring, and the profits and losses of the current periodshall be recorded in stages on the same basis as the recognized rental income during the wholelease period; the smaller initial direct expenses shall be recorded in the profits and losses of thecurrent period when occurring. Contingent rentals shall be included in current profits and losseswhen actually occurring.

2)Finance lease

At the beginning date of the lease term, the Company recognizes the financial leasepayment receivable for the financial lease and terminates the recognition of the financial leaseassets. When the Company makes the initial measurement of the financial lease receivable, thenet lease investment is taken as the recorded value of the financial lease receivable. The netlease investment is the sum of the unsecured balance and the present value of the lease proceedsnot yet received at the commencement date of the lease term, discounted at the intrinsic interestrate of the lease. The Company calculates and recognizes interest income for each period of thelease term based on the inherent interest rate of the lease.

The Company presents financial lease receivables as long-term receivables, and financial

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lease receivables received within one year (including one year) from the balance sheet date arepresented as non-current assets maturing within one year.

32. Other important accounting policies and accounting estimates

(1) Hedge accounting

In order to avoid some risks, the Company hedges some financial instruments as hedginginstruments. For the hedges meeting the specified conditions, the Company adopts the hedgeaccounting method for treatment. The hedging of the Company is fair value hedging.At the beginning of hedging, the Company formally designates hedging instruments andhedged items, and prepares written documents on hedging relationship and risk managementstrategy and risk management objectives of the Company engaged in hedging. In addition, theCompany will continuously evaluate the effectiveness of hedging at the beginning and after thehedging.(2)Fair value hedgingIf a hedging instrument is designated as a fair value hedge and meets the conditions, theprofits or losses arising therefrom shall be included into the current profits and losses. If thehedging instrument hedges the non-trading equity instrument investment (or its components)that is measured at fair value and whose changes are included in other comprehensive income,the gains and losses generated by the hedging instrument are included in other comprehensiveincome. The profit or loss of the hedged item due to the hedged risk exposure shall be includedinto the current profits and losses, and the book value of the hedged item shall be adjusted atthe same time. If the hedged item is measured at fair value, the gain or loss of the hedged itemdue to the hedged risk does not need to adjust the book value of the hedged item, and therelevant gains and losses are included into the current profits and losses or other comprehensiveincome.When the Company cancels the designation of the hedging relationship, the hedginginstrument has expired or been sold, the contract has been terminated or exercised, or no longermeets the conditions for the application of hedge accounting, the application of hedgeaccounting shall be terminated.

33. Changes in Significant Accounting Policies and Accounting Estimates

The Company did not have any significant changes in accounting policies and accounting

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estimates during the reporting period.IV. Taxes

1. Major types of taxes and tax rates

Taxes Tax basis Tax rateVAT

Taxable value-added amount (tax payable iscalculated as the balance of taxable sales amountmultiplied by the applicable tax rate after deductinginput VAT allowable for the current period)

1%、3%、5%、6%、9%、10%、13%Urban MaintenanceConstruction Tax

It is calculated and levied according to the actualVAT paid

7%、5%

Educational feesurcharge

It is calculated and levied according to the actualVAT paid

3%

Local EducationAdd-on

It is calculated and levied according to the actualVAT paid

2%

Corporate income tax According to the taxable income

25%、20%、17%、15%

Property tax

70% of the original value of the property is the taxbasis, and 30% is deducted according to the originalvalue of the property; Rental income is used as thetax basis

12%、1.2%

If there are taxpayers with different enterprise income tax rates, the disclosure shall beexplained:

Name of the taxpayer Income tax rateHangzhou Lin'an Chunmanyuan Agricultural Development Co., Ltd 20%Jingliang (Singapore) International Trade Co., Ltd 17%Beijing Guchuan Bread Food Co., Ltd 15%

2. Tax incentives

Beijing Guchuan Bread & Food Co., Ltd., a third-level subsidiary of the Company, is ahigh-tech enterprise, which enjoys the preferential tax policy of paying enterprise income taxat a rate of 15% in accordance with the relevant provisions of the Law of the People's Republicof China on the Administration of Tax Collection and Collection and the Detailed Rules for theImplementation of the Law of the People's Republic of China on the Administration of TaxCollection, and the certificate number of the high-tech enterprise is GR202411003833, which

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is valid until October 29, 2027. According to Announcement No. 43 of 2023 of the Ministry ofFinance and the State Administration of Taxation on the VAT Plus Deduction Policy forAdvanced Manufacturing Enterprises, from January 1, 2023 to December 31, 2027, advancedmanufacturing enterprises are allowed to deduct the VAT payable by adding 5% of thedeductible input tax in the current period.The company's third-level subsidiary, Jingliang (Singapore) International Trade Co., Ltd.,is taxed according to the territorial principle. Based on Singapore's tax exemption policy, thecompany is eligible for the following tax exemptions:

1.The first SGD 10,000 of taxable income is exempted by SGD 7,500. For the portion of

taxable income between SGD 10,001 and SGD 200,000, a 95% exemption is granted. Theportion exceeding SGD 200,000 is not eligible for exemption. The company will pay incometax at a 17% rate based on the taxable income after applying the exemptions.

2.For the 2025 Year of Assessment (YA), all taxable companies (regardless of whether

they are tax residents) will receive a rebate equivalent to 50% of the corporate tax payable, witha total rebate amount of SGD 40,000.

Zhejiang Little Prince Food Co., Ltd., a third-level subsidiary of the Company, HangzhouLin'an Little Angel Food Co., Ltd., Linqing Little Prince Food Co., Ltd. and Liaoning LittlePrince Food Co., Ltd., a fourth-level subsidiary of the Company, in accordance with the relevantprovisions of the Notice of the Ministry of Finance and the State Administration of Taxationon Issues Concerning the Preferential Policies of Enterprise Income Tax Related to theEmployment of Disabled Persons (CS (2009) No. 70). An additional deduction of 100% of thewages paid to the disabled employee can be made in the calculation of taxable income.Hangzhou Lin'an Little Angel Food Co., Ltd., a fourth-level subsidiary of the Company,is a welfare enterprise, and has been enjoying the preferential policy of VAT refund in theNotice on Promoting the Employment of Disabled Persons (CS [2016] No. 52) since May 2016.

The company's fourth-level subsidiary, Liaoning Little Prince Food Co., Ltd., is subject tothe regulations in Article 13 of the Ministry of Finance and the State Administration ofTaxation's "Notice on the Issuance of Supplementary Provisions on Several Specific Issues ofLand Use Tax" (89 Guo Shui Di Zi No. 140). According to this regulation, "public lands such

Page 64 of 140

as municipal streets, squares, and greenbelts" are exempt from land use tax. When calculatingthe land use tax, the area used for green space and roads can be subtracted from the total landarea to determine the taxable area. The company's fourth-level subsidiary, Hangzhou Lin'anLittle Angel Food Co., Ltd., benefits from a tax reduction according to the Zhejiang ProvincialLocal Taxation Bureau's Announcement (2014 No. 8). For companies where the averagenumber of disabled employees in a tax year exceeds 25% (including 25%) of the total numberof on-duty employees, and the actual number of disabled employees exceeds 10 (including 10),the company may, upon approval from the local tax department, enjoy a reduction in urban landuse tax. The reduction is RMB 2,000 per person per year based on the annual average numberof disabled employees, with the maximum reduction limited to the total amount of urban landuse tax payable by the company for that year.The Company’s fourth-level subsidiary, Hangzhou Lin’an Little Angel Food Co., Ltd., inaccordance with the provisions of the Announcement of the Zhejiang Provincial Local TaxationBureau (Announcement No. 8 of 2014), for entities in which, within a tax year, the monthlyaverage actual number of disabled persons employed accounts for more than 25% (inclusive)of the total number of employees on staff and the actual number of disabled persons employedexceeds 10 (inclusive) (including welfare enterprises, blind massage institutions, work therapyinstitutions and other entities), upon approval by the local taxation authorities, may enjoy apreferential policy of urban land use tax reduction calculated at a fixed amount of RMB 2,000per person per year based on the annual average actual number of disabled persons employed,with the maximum reduction not exceeding the amount of urban land use tax payable by theentity for the year.

According to the Announcement on Relevant Tax and Fee Policies for Further Supportingthe Development of Small and Micro Enterprises and Individually Owned Businesses(Announcement of the Ministry of Finance and the State Taxation Administration No. 12 of2023), the Company’s second-level subsidiary Jingliang (Yangpu) Grain and Oil Industry Co.,Ltd., and fourth-level subsidiaries Linqing Little Prince Food Co., Ltd. and Hangzhou Lin’anChunmanyuan Agricultural Development Co., Ltd. meet the criteria for recognition as smalland micro enterprises. The applicable preferential policies for the year 2025 are as follows:

Page 65 of 140

① For the portion of annual taxable income not exceeding RMB 3 million, 25% of the amount

shall be included in taxable income, and enterprise income tax shall be paid at a tax rate of 20%;

② Resource tax (excluding water resource tax), urban maintenance and construction tax,

property tax, urban land use tax, stamp duty (excluding securities transaction stamp duty),cultivated land occupation tax, education surcharge, and local education surcharge shall belevied at half of the statutory rate.The Company’s third-level subsidiary Beijing Tianweikang Oil and Fat Allocation andDistribution Center Co., Ltd., in accordance with the Announcement on Continuing theImplementation of Certain Tax Preferential Policies for National Commodity Reserves(Announcement of the Ministry of Finance and the State Taxation Administration No. 48 of2023), enjoys the following policies: stamp duty shall be exempted on accounting books ofcommodity reserve management companies and their directly affiliated warehouses; stamp dutyshall be exempted on purchase and sale contracts executed in the course of undertakingcommodity reserve operations; stamp duty payable by other parties to such contracts shall belevied in accordance with the relevant regulations; and property tax and urban land use tax shallbe exempted on the real estate and land used by commodity reserve management companiesand their directly affiliated warehouses for their own use in undertaking commodity reserveoperations.

V. Notes to Items in the Consolidated Financial Statements

Unless otherwise specified, the financial statements disclosed below refer to the financialstatements as at the end of the period as at 31 December 2025, the term "at the beginning of theperiod" as at 31 December 2024, the term "current" as at 1 January to 31 December 2025 andthe "previous period" as at 1 January to 31 December 2024, with the currency unit RMB yuan.

1. Monetary funds

Projects Period-End Balance Beginning BalanceCash on hand 10,241.76 10,717.74Bank deposits 453,246,396.16 503,613,151.53Funds in other currencies 65,441,208.59 72,691,131.78Deposit of financial company deposits 1,303,024,670.57 840,710,693.25

Page 66 of 140

Projects Period-End Balance Beginning BalanceTotal 1,821,722,517.08 1,417,025,694.30Among them: the total amount of money depositedabroa

17,207,901.63 23,966,791.89

2. Derivative financial assets

Project Period-End Balance Beginning Balance

Floating profit and loss of hedging instruments 70,947,839.67

Total 70,947,839.67

3. Accounts receivable

（1） Disclosure by ageing

Aging Period-End Balance Beginning BalanceWithin 1 year 97,759,940.74 91,439,947.431 to 2 years 582,432.97

2 to 3 years

752,867.273 to 4 years 717,497.724 to 5 years

More than 5 years 328,259.50 328,259.50

Total 99,388,130.93 92,521,074.20

（2） Classified disclosure according to the method of bad debt provision

Category

End of periodBook Balance Provision for Bad Debts

Book ValueAmount Proportion (%) Amount

Provision

Ratio(%)Provision for baddebts b

dy

ite

449,259.50 0.45 449,259.50 100.00

Portfolio by creditrisk characteristics

98,938,871.43 99.55 722,497.72 0.73 98,216,373.71Total 99,388,130.93 —— 1,171,757.22 —— 98,216,373.71（Continuing Table）Category

Beginning periodBook Balance Provision for Bad Debts

Book ValueAmount Proportion (%) Amount

ProvisionRatio(%)Provision for baddebts b

ite

328,259.50 0.35 328,259.50 100.00

Portfolio by creditrisk characteristics

92,192,814.70 99.65 752,919.57 0.82 91,439,895.13

Page 67 of 140

Category

Beginning periodBook Balance Provision for Bad Debts

Book ValueAmount Proportion (%) Amount

ProvisionRatio(%)Total 92,521,074.20 —— 1,081,179.07 —— 91,439,895.13

① Provision for Bad Debts

Debtor’s name

Beginning period Period-End BalanceBookBalance

Provisionfor BadDebts

BookBalance

Provision forBad Debts

ProvisionRatio (%)

Aging

ProvisionReasonFujian JingxinIndustrialGroup Co., Ltd.

151,844.00 151,844.00 151,844.00 151,844.00 100.00

Morethan 5years

Tight liquidity,unable to repay

Beijing GuotaiPing'an TianzhuCommercialDevelopmentCo., Ltd.

1,809.60 1,809.60 1,809.60 1,809.60 100.00

Morethan 5years

Expected to beunrecoverable

BeijingRongfalidaGrain and OilTrading Co.,Ltd.

163,143.00 163,143.00 163,143.00 163,143.00 100.00

Morethan 5years

Expected to beunrecoverable

Beijing GuotaiPing AnDepartmentStore Co., Ltd.

10,862.90 10,862.90 10,862.90 10,862.90 100.00

Morethan 5years

Expected to beunrecoverableBeijing ShunyiLonghuaShoppingCente

600.00 600.00 600.00 600.00 100.00

Morethan 5years

Expected to beunrecoverableChengde JinliFood Co., Ltd.

121,000.00 121,000.00 100.00

within

oneyea

rr

Expected to beunrecoverableTotal 328,259.50 328,259.50 449,259.50 449,259.50 —— —— ——

②Items for Group-Based Provisioning of Bad Debt Allowances:

Name

Period-End BalanceAccounts receivable Provision for bad debts

Accrual ratio

（%）Credit Risk Portfolio 98,938,871.43 722,497.72 0.73

Total 98,938,871.43 722,497.72 0.73（Continuing Table）

Name

Beginning periodAccounts receivable Provision for Bad Debts

Accrual ratio

（%）Credit Risk Portfolio 92,192,814.70 752,919.57 0.82

Page 68 of 140

Total 92,192,814.70 752,919.57 0.82

（3） Provision for Bad Debts situation

Category

Beginning

period

Changes during the period

Period-EndBalanceProvision

Recoveryorreversal

Write-offorcancellation

OtherchangesProvision forBad Debts onindividuallyassessed items

328,259.50 121,000.00 449,259.50Credit risk

ortfolio

752,919.57 -30,421.85 722,497.72Total 1,081,179.07 90,578.15 1,171,757.22

（4） Accounts receivable and contract assets of the top five end-of-term balances collected by

the debtor

Debtor's name

AccountsreceivablePeriod-EndBalance

ContractassetsPeriod-EndBalance

Accountsreceivable andcontract assets

Period-End

Balance

Proportionof the totalAccountsreceivableand contract

assetsPeriod-EndBalance (%)

Provision

for BadDebtsPerio

d-End

BalanceHuadu Food Co., Ltd.,Luanping County,Hebei Province

22,348,359.23

22,348,359.23 22.49

Beijing Grain GroupCo., Ltd.

12,847,737.37

12,847,737.37 12.93

Guizhou Grain ReserveGroup Co., Ltd.

10,340,000.00

10,340,000.00 10.40

Beijing Yangu Grainand Oil Purchasing andSales Co., Ltd.

6,780,217.25

6,780,217.25 6.82

Zhejiang Lvqin SupplyChain ManagementCo., Ltd.

5,893,330.64

5,893,330.64 5.93

Total 58,209,644.49

58,209,644.49 58.57

4. Prepayments

（1） Prepayments Classified by Aging

Aging

Period-End Balance Beginning periodAmount Proportion (%) Amount Proportion (%)Within 1 year 574,317,912.78 99.98 198,688,387.53 99.981 to 2 years 60,544.38 0.01 33,623.94 0.022 to 3 years 32,386.44 0.01

Page 69 of 140

Aging

Period-End Balance Beginning periodAmount Proportion (%) Amount Proportion (%)more than 3 years

Total 574,410,843.60 100 198,722,011.47 100

（2） Prepayment status of the top five prepaid balances at the end of the period,

grouped by prepayment object

Debtor’s name Book Balance

Percentageof TotalPrepayments（%）

Bad DebtProvisionChina Grain Reserves Oils & Fats Co., Ltd. 522,392,380.32 90.94

Louis Dreyfus (Tianjin) International Trade Co., Ltd. 19,844,809.79 3.45

Jiangsu Jianghai Grain & Oil Group Co., Ltd. 15,950,587.40 2.78

COFCO Jiayue (Tianjin) Co., Ltd. 5,005,103.18 0.87

Zhuhai Binhe Industrial Co., Ltd.

3,351,570.00 0.58

Total 566,544,450.69 98.62

5. Other Receivables

Item Period-End Balance Beginning periodOther Receivables

173,257,419.17 455,148,011.66

Total 173,257,419.17 455,148,011.66

（1） Other Receivables

① By Aging

Aging Period-End Balance Beginning BalanceWithin 1 year 220,208,199.83 433,032,730.721 to 2 years 759,074.72 20,961,921.582 to 3 years 492,800.00 435,859.373 to 4 years 327,859.37 86,000.004 to 5 years 62,000.00 12,500.00Over 5 years 401,499.99 618,999.99

Total 222,251,433.91 455,148,011.66

② Classification by Nature of Receivables

Nature of Receivable Period-End Balance Beginning BalanceDeposits and Guarantees 130,596,795.79 452,531,490.90

Page 70 of 140

Nature of Receivable Period-End Balance Beginning BalanceCompany Transactions 58,906,353.63 389,804.08Employee Receivables 729,283.59 784,435.04Tax Refund Receivables 1,196,283.46 1,370,551.74Insurance claim proceeds 30,654,986.50Others 167,730.94 71,729.90

Total 222,251,433.91 455,148,011.66

③ Bad Debt Provision by Method of Provisioning

Category

Period-End BalanceBook Balance Provision for Bad Debts

Book ValueAmount Proportion (%) Amount

Expected

CreditLossRate(%)IndividuallyProvisions forBad Deb

48,980,344.30 22.04 48,980,344.30 100.00

Provisions forbad debtsrecognized onreceivablesgrouped bycredit riskcharacteristics

173,271,089.61 77.96 13,670.44 0.01 173,257,419.17Total 222,251,433.91 —— 48,994,014.74 —— 173,257,419.17（Continuing Table）Category

Beginning periodBook Balance Provision for Bad Debts

Book ValueAmount Proportion (%) Amount

ExpectedCredit

LossRate(%)IndividuallyProvisions forBad Deb

tt

Provisions for baddebts recognizedon receivablesgrouped by creditriskcharacteristics

455,148,011.66 100.00 455,148,011.66Total 455,148,011.66 ——

—— 455,148,011.66

④Other receivables with individually assessed Provision for Bad Debts

Page 71 of 140

Debtor’s

name

Beginning period Period-End BalanceBookBalance

Provisionfor BadDebts

Book Balance

Provision forBad Debts

ProvisionRatio(%)

Aging

ProvisionReasonMARSFARMERLIMITED

48,970,344.30 48,970,344.30 100.00

Within1 year

Expected tobeunrecoverableKeyoushi(Shanghai)ManagementConsultingCo., Ltd.

10,000.00 10,000.00 100.00

4 to 5years

Expected tobeunrecoverableTotal 48,980,344.30 48,980,344.30 —— —— ——

⑤ Provision for Bad Debts recognized on a portfolio basis

Name

Period-End Balanceotherreceivables

Provision forBad Debts

Provisionrate (%))Credit risk portfolio 42,637,733.45 13,670.44 0.03Deposit and security deposit portfolio 130,530,795.79Petty cash advances to employees of theCompan

102,560.37Total 173,271,089.61 13,670.44 0.01（Continuing Table）

Name

Beginning period

otherreceivables

Provision forBad Debts

Provision rate

(%))Credit risk portfolio 2,503,901.81Deposit and security deposit portfolio 452,475,490.90Petty cash advances to employees of theCompan

yy

168,618.95Credit risk portfolio 455,148,011.66

⑥ Provision for Bad Debts recognized under the general model of Expected Credit Losses

Provision for Bad Debts

Stage 1 Stage 2 Stage 3

TotalExpectedcredit lossesover the next12 months

Lifetimeexpected

creditlosses (not

credit-impaired)

Lifetimeexpected

creditlosses(credit-impaired)

Beginning periodBeginning period | During the period —— —— —— ——-- Transfer to Stage 2-- Transfer to Stage 3

Page 72 of 140

Provision for Bad Debts

Stage 1 Stage 2 Stage 3

TotalExpectedcredit lossesover the next

12 months

Lifetimeexpectedcreditlosses (notcredit-impaired)

Lifetimeexpectedcreditlosses(credit-impaired)

-- Transfer back to Stage 2-- Transfer back to Stage 1Provision recognized during the period 34,993,517.00

23,670.44 35,017,187.44Reversal during the periodWrite-off during the periodCharge-off during the periodOther changes

13,976,827.30 13,976,827.30Period-End Balance 48,970,344.30

23,670.44 48,994,014.74

⑦ Provision for Bad Debts situation

Category

Beginningperiod

Changes during the period

Period-End

BalanceProvisionrecognized

Recoveryorreversal

Write-off

orcancellation

Other changesIndividuallyProvisions for BadDeb

35,003,517.00 13,976,827.30 48,980,344.30Credit risk portfolio 13,670.44 13,670.44Total 35,017,187.44 13,976,827.30 48,994,014.74

⑧ Top five other receivables by debtor aggregated at Period-End Balance

Debtor’s name

Nature ofreceivable

Book Balance Aging

Proportion of totalother receivables (%)

Provision for Bad

DebtsZhongtianFutures Co., Ltd.

Security deposit 61,041,175.30 Within 1 year 27.46

t

MARSFARMERLIMITED

Intercompanyreceivable

48,970,344.30 Within 1 year 22.03 48,970,344.30

China LifeProperty &CasualtyInsuranceCompanyLimited BeijingBranch

Insurance claim

proceeds

30,654,986.50 Within 1 year 13.79

Galaxy FuturesCo., Ltd.

Security deposit 27,710,580.50 Within 1 year 12.47

Grain TradingCoordinationCenter of theNational Foodand StrategicReservesAdministration

Security deposit 20,020,000.00 Within 1 year 9.01

Total —— 188,397,086.60 —— 84.76 48,970,344.30

Page 73 of 140

6. Inventory

（1） Inventory Classification

Item

Period-End BalanceBook Balance

Provision forInventoryImpairment/Contract

Fulfillment CostProvision

Book ValueRaw Materials 597,025,582.96 21,350,971.75 575,674,611.21Self-made Semi-finishedProducts & Work in Pro

ress

372,109.32 0.00 372,109.32Finished goods 664,865,256.03 1,510,139.93 663,355,116.10Turnover Materials 2,978,388.97 57,918.90 2,920,470.07Materials entrusted for

gp

rocessin

83,426,732.77 83,426,732.77

Goods in Transit 94,930,883.69 94,930,883.69

Goods dispatched 1,249,168.24 1,249,168.24

Total 1,444,848,121.98 22,919,030.58 1,421,929,091.40（Continuing Table）

Item

Beginning BalanceBook Balance

Provision forInventoryImpairment/Contract

Fulfillment CostProvision

Book ValueRaw Materials 413,059,280.53 413,059,280.53Self-made Semi-finishedProducts & Work in Pro

ress

25,015.91 25,015.91Finished Goods 1,155,820,490.28 234,235.76 1,155,586,254.52Turnover Materials 5,044,840.04

5,044,840.04Goods in Transit 797,976,857.22 13,886,827.30 784,090,029.92

Total 2,371,926,483.98 14,121,063.06 2,357,805,420.92

（2） Inventory Falling Price Reserves and provision for impairment of contract performance

costs

Item Beginning period

Increased Amounts in the

Current Perio

gd

Accrual Others

Raw Materials 21,350,971.75

Finished Goods 234,235.76 3,441,560.26

Turnover Materials

57,918.90

Goods in Transit 13,886,827.30 90,000.00

Page 74 of 140

Item Beginning period

Increased Amounts in theCurrent Perio

Accrual OthersTotal 14,121,063.06 24,940,450.91（Continuing Table）

Item

Decreased Amounts in the Current

Perio

dd

Period-End

BalanceRecover orChar

dg

e Off

OthersRaw material 21,350,971.75Finished Goods 2,165,656.09 1,510,139.93Turnover Materials 57,918.90Goods in Transit 13,976,827.30

Total 2,165,656.09 13,976,827.30 22,919,030.58

（3） Stock Goods listed by major product type

Name

Closing BalanceBook Balance Falling Price Reserves Book ValueGrease and oils648,365,629.66 1,510,139.93 646,855,489.73

Food16,499,626.37 16,499,626.37

Total664,865,256.03 1,510,139.93 663,355,116.10

（Continuing Table）Name

Opening Balance

Book BalanceFalling Price ReservesBook Value

Grease and oils1,134,402,697.01 170,341.46 1,134,232,355.55

Food21,417,793.27 63,894.30 21,353,898.97

Total1,155,820,490.28 234,235.76 1,155,586,254.52

7. Non-current Assets Due Within One Year

Item Period-End Balance Beginning periodTerm Deposits Due Within One Year

10,694,166.66

Total

10,694,166.66

8. Other Current Assets

Item Period-End Balance Beginning periodVAT to be deducted 80,350,441.94 75,132,953.17Prepaid Taxes 9,948,529.68 6,584,449.99VAT to be certified 245,525.77 285,763.13Fair Value Changes of Hedged Items 8,705,942.21 79,380,779.05

Page 75 of 140

Item Period-End Balance Beginning periodTotal 99,250,439.60 161,383,945.34

9. Long-Term Equity Investments

（1） Long-term equity investments situation

① Long-Term Equity Investment Classification

Item

BeginningBalance

CurrentIncrease

CurrentDecrease

Period-EndBalanceInvestment in JointVentures

133,970,264.23 5,488,026.95

139,458,291.18Investment in Associates

133,535,203.79 546,035.33 6,266,560.98 127,814,678.14Total 267,505,468.02 6,034,062.28 6,266,560.98 267,272,969.32

② Details of Joint Ventures and Associates

Invested Entity

InvestmentCost

BeginningBalance

Current ChangesAdditionalInvestment

ReducedInvestment

Equity Method

Investment

Income

OtherComprehensive

IncomeAdjustmen

Total 119,825,100.64 267,505,468.02 -232,498.70

1. Joint Ventures 26,232,442.61 133,970,264.23 5,488,026.95Beijing ZhengdaFeedstuff LimitedCompany

26,232,442.61 133,970,264.23 5,488,026.95

2. Associates 93,592,658.03 133,535,203.79 -5,720,525.65Zhongchu Grain(Tianjin) Storage& Logistics Co.,Ltd.

84,000,000.00 127,268,642.81 546,035.33Jingliang MismiCateringManagement(Beijing) Co., Ltd.

9,592,658.03 6,266,560.98 -6,266,560.98

（Continuing Table）Investment Entity

Current Changes

Period-End

Balance

Impairment

ProvisionBalanceOtherEquityChanges

Declaration of CashDividends or Profits

Impairment

Provision

OtherTotal 267,272,969.32

1. Joint Venture 139,458,291.18Beijing ZhengdaFeedstuff LimitedCompany

139,458,291.18

2. Associate 127,814,678.14Zhongchu Grain(Xiong'an) Storage &Logistics Co., Ltd.

127,814,678.14Jingliang MismiCateringManagement(Beijing) Co., Ltd.

t

Page 76 of 140

10. Investment properties

（1） Investment properties measured using the cost model

Item

Buildings and

structures

Land use

ri

hts

Construction

in pro

ress

TotalI.Gross carrying amount

1.Beginning period 62,845,234.00 576,510.00 63,421,744.00

2. Increase during the period

3. Decrease during the period 2,123,357.90 2,123,357.90—Other transfers out 2,123,357.90 2,123,357.90

4.Period-End Balance 60,721,876.10 576,510.00 61,298,386.10II.Accumulated depreciationand accumulated amortization

1.Beginning period 34,336,525.00 220,034.65 34,556,559.65

2. Increase during the period 1,662,520.91 11,530.20 1,674,051.11

—Provision oramortization

1,662,520.91 11,530.20 1,674,051.11

3. Decrease during the period 1,772,572.90 1,772,572.90

—Other transfers out 1,772,572.90 1,772,572.90

4.Period-End Balance 34,226,473.01 231,564.85 34,458,037.86III. Impairment provision

1.Beginning period 10,587,796.70 10,587,796.70

2. Increase during the period

3.Decrease during the period

4.Period-End Balance 10,587,796.70 10,587,796.70IV.Book Value

1. Period-end Book Value 15,907,606.39 344,945.15 16,252,551.54

2. Beginning Book Value 17,920,912.30 356,475.35 18,277,387.65

11. Fixed assets

Item Period-end Book Value Beginning Book ValueFixed assets 841,479,812.89 891,221,864.74Disposal of fixed assets

Total 841,479,812.89 891,221,864.74

Page 77 of 140

（1） Fixed Asset Situation

Item Buildings & Structures

Machinery &

E

ui

ment

Transportation

Tools

ElectronicE

ui

ment

OfficeE

ui

ment

OtherE

ui

ment

TotalI. Original Cost

1. Beginning Balance 1,069,117,861.39 823,734,711.89 18,848,024.29 13,588,228.08 7,806,289.10

1,385,077.4

1,934,480,192.18

2. Additions This Period 26,476,026.74 41,499,572.03 3,561,585.35 409,628.41 27,427.02 71,974,239.55— Purchase 13,722,961.57 13,129,323.49 2,744,734.82 409,628.41 27,427.02 30,034,075.31— Transfers fromConstruction in Pro

ress

10,629,707.27 28,370,248.54 816,850.53 39,816,806.34—Others 2,123,357.90 2,123,357.90

3. Reductions This Period 21,160,211.81 260,264.11 730,917.08 585,025.35

1,179,630.6

23,916,049.04— Disposals or Scrap 21,160,211.81 260,264.11 730,917.08 585,025.35

1,179,630.6

23,916,049.04

4. Period-End Balance 1,095,593,888.13 844,074,072.11 18,587,760.18 16,418,896.35 7,630,892.16 232,873.76 1,982,538,382.69

II. Accumulateddepreciation

1.Beginning period 478,795,195.04 528,503,752.48 11,706,669.69 9,786,529.31 4,928,269.96 419,597.21 1,034,140,013.69

2. Additions This Period 40,209,042.90 54,591,127.82 1,678,254.76 1,342,030.56 754,352.27 70,387.55 98,645,195.86

— Provision 38,436,470.00 54,591,127.82 1,678,254.76 1,342,030.56 754,352.27 70,387.55 96,872,622.96—Others 1,772,572.90 1,772,572.90

3. Reductions This Period 17,418,032.00 251,311.89 659,436.82 557,419.13 405,107.96 19,291,307.80— Disposals or Scrap 17,418,032.00 251,311.89 659,436.82 557,419.13 405,107.96 19,291,307.80

4. Period-End Balance 519,004,237.94 565,676,848.30 13,133,612.56 10,469,123.05 5,125,203.10 84,876.80 1,113,493,901.75

III. Impairment Provision

Page 78 of 140

Item Buildings & Structures

Machinery &E

ui

ment

Transportation

Tools

ElectronicE

ui

ment

OfficeE

ui

ment

OtherE

ui

ment

Total

1.Beginning period 9,047,959.13 70,354.62 9,118,313.75

2. Current Period Increase 18,213,856.37 2,780.80 155,337.57 69,089.76 5,289.80 18,446,354.30—Provision 18,213,856.37 2,780.80 155,337.57 69,089.76 5,289.80 18,446,354.30

3. Reductions This Period

4.Period-End Balance 9,047,959.13 18,284,210.99 2,780.80 155,337.57 69,089.76 5,289.80 27,564,668.05IV.Book Value

1. Period-End Book Value 567,541,691.06 260,113,012.82 5,451,366.82 5,794,435.73 2,436,599.30 142,707.16 841,479,812.89

2.Beginning Book Value 581,274,707.22 295,160,604.79 7,141,354.60 3,801,698.77 2,878,019.14 965,480.22 891,221,864.74

（2） Recoverable Amount determined based on fair value less costs of disposal

Item Book Value Recoverable Amount Impairment Amount

Method for determining fair value and costs of

disposal

Key parameters

Basis fordetermining key

parametersOffice equipment 124,771.01 55,681.25 69,089.76

Fair value is primarily determined using themarket approach, and costs of disposal aredetermined based on the necessary expenses

incurred during the asset disposal process

Second-hand marketprices of similar assets

Based on recentmarket transactionprices and on-siteinspectionElectronic equipment 295,986.86 140,649.29 155,337.57Machinery and equipment 22,833,066.82 4,619,210.45 18,213,856.37Transportation equipment 3,819.03 1,038.23 2,780.80Others 36,280.44 30,990.64 5,289.80Total 23,293,924.16 4,847,569.86 18,446,354.30 —— —— ——

Page 79 of 140

12. Construction in Progress

Item Period-End Balance Beginning periodConstruction in Progress

88,960,509.10 50,058,378.98

Total

88,960,509.10 50,058,378.98

（1） Construction in Progress

① Construction in Progress Situation

Item

Period-End BalanceBook Balance Impairment provision Book ValueBaking production line 37,502,395.06

37,502,395.06Jingliang Hainan Yangpu Oil Processing Project 12,048,331.15

12,048,331.15Slope stabilization project of Plant No.3 8,101,830.83

8,101,830.83Comprehensive Bonded Zone feed processing project 7,858,573.81

7,858,573.81Leisure Plant No.3 Haidilao baked potato chips automation upgrade project 6,438,366.79

6,438,366.79Rice cake production line upgrading and renovation project 4,347,643.14

4,347,643.14Rice products workshop relocation and renovation project 2,854,971.76

2,854,971.76Snow rice cracker workshop product category expansion investment project 1,472,459.91 1,472,459.91Soybean extrusion and rumen-protected soybean meal processing projectLeisure Plant No.1 fried potato chips Line 6 flexible automation upgrade projectLeisure Plant No.2 baked potato chips refining system conversion to automated material sorting and tray loading system projectLeisure Plant No.2 Oriental Selection baked potato chips capacity expansion project

Page 80 of 140

Item

Period-End BalanceBook Balance Impairment provision Book ValueRice cake workshop infrastructure and prefabricated section project 1,341,054.32

1,341,054.32Lean production transformation project for Workshop No.2 of Leisure Plant No.1 1,311,148.16

1,311,148.16Other projects 5,683,734.17 - 5,683,734.17

Total 88,960,509.10 88,960,509.10（Continuing Table）

Item

Beginning periodBook Balance Impairment provision Book ValueBaking production lineJingliang Hainan Yangpu Oil Processing Project 6,288,251.73

6,288,251.73Slope stabilization project of Plant No.3 6,996,706.06

6,996,706.06Comprehensive Bonded Zone feed processing project 7,858,573.81

7,858,573.81Leisure Plant No.3 Haidilao baked potato chips automation upgrade projectRice cake production line upgrading and renovation project

Rice products workshop relocation and renovation project 2,749,716.18

2,749,716.18Snow rice cracker workshop product category expansion investment project 1,347,952.96

1,347,952.96Soybean extrusion and rumen-protected soybean meal processing project 14,863,819.29 14,863,819.29Leisure Plant No.1 fried potato chips Line 6 flexible automation upgrade project 2,866,434.87 2,866,434.87Leisure Plant No.2 baked potato chips refining system conversion to automated material sorting and tray loading system project 1,750,171.23 1,750,171.23Leisure Plant No.2 Oriental Selection baked potato chips capacity expansion project 1,166,784.33 1,166,784.33

Page 81 of 140

②Major Changes in Construction in Progress This Period

Project Name

Budget Amount Beginning period Increase This Period Transfer to Fixed Assets

Decrease ThisPeriod

Period-End BalanceBaking production line 164,200,000.00

37,502,395.06 37,502,395.06Jingliang Hainan Yangpu Oil Processing Project 49,429,300.00 14,863,819.29 11,696,560.63 26,560,379.92

Slope stabilization project of Plant No.3 661,324,100.00 6,288,251.73 5,760,079.42

12,048,331.15Comprehensive Bonded Zone feed processing

ro

ect

7,184,400.00 7,858,573.81 7,858,573.81Leisure Plant No.3 Haidilao baked potato chipsautomation u

rade

ro

ect

17,107,500.00 6,996,706.06 1,105,124.77 8,101,830.83Leisure Plant No. 3 Haidilao baked potato chipsautomation upgrade project

6,691,000.00 6,438,366.79 6,438,366.79Total 905,936,300.00 36,007,350.89 62,502,526.67 26,560,379.92

71,949,497.64

（Continuing Table）

Item

Beginning periodBook Balance Impairment provision Book ValueRice cake workshop infrastructure and prefabricated section projectLean production transformation project for Workshop No.2 of Leisure Plant No.1Other projects 4,169,968.52 4,169,968.52Total 50,058,378.98 50,058,378.98

Page 82 of 140

Project Name

Budge ofCumulativeInvestment（%）

ProjectProgress

Capitalized InterestAccumulated Amount

Current PeriodCapitalizedInterest

CapitalizationRate（%）

Funding SourceBaking production line 22.84 22.84%

Self-owned by the enterpriseSoybean extrusion and rumen-protected soybean meal processing

roject

100.00 100.00%

p

Self-owned by the enterpriseJingliang Hainan Yangpu oil

rocessing project

1.82 1.82%

p

Raised funds and self-financing by the enterpriseComprehensive Bonded Zone feed

rocessin

ro

ect

109.38 99.00% Self-owned fundsSlope stabilization project of PlantNo. 3

47.36 50.00% Self-owned by the enterpriseLeisure Plant No. 3 Haidilao bakedpotato chips automation upgrade

ro

ect

96.22 96.00% Self-owned by the enterpriseTotal —— —— —— ——

Page 83 of 140

13. Right-of-Use Assets

（1） Situation of Right-of-Use Assets

Item

Buildings &

Structures

TransportationTools

Land UseRights

TotalI. Original Cost

1. Beginning Balance 120,774,622.11 467,890.70 5,648,400.00 126,890,912.81

2. Additions for the Period 167,805,814.50 167,805,814.50— Leased 167,805,814.50 167,805,814.50

3. Reductions for the Period 118,358,131.25 118,358,131.25— Contract Expiry 1,314,156.45 1,314,156.45— Contract Expiry adjustment 117,043,974.80 117,043,974.80

4.Period-End Balance 170,222,305.36 467,890.70 5,648,400.00 176,338,596.06II. Accumulated Depreciation

1.Beginning period 48,674,411.99 116,327.29 1,129,680.00 49,920,419.28

2. Additions for the Period 27,973,077.75 45,896.82 112,968.00 28,131,942.57

— Depreciation 27,973,077.75 45,896.82 112,968.00 28,131,942.57

3. Reductions for the Period 71,540,541.29 71,540,541.29

— Contract Expiry 70,226,384.84 70,226,384.84

— Contract Expiry adjustment 1,314,156.45 1,314,156.45

4.Period-End Balance 5,106,948.45 162,224.11 1,242,648.00 6,511,820.56III. Impairment Provision

1.Beginning period

2. Additions for the Period

3. Reductions for the Period

4.Period-End BalanceIV. Book value

1.Ending Book Value 165,115,356.91 305,666.59 4,405,752.00 169,826,775.50

2.Beginning Book Value 72,100,210.12 351,563.41 4,518,720.00 76,970,493.53

14. Intangible Assets

（1） Intangible Asset Situation

Item Software Land Use Rights Trademark Rights TotalI. Original Cost

1.Beginning period 5,388,151.29 415,718,033.78 154,841,200.00 575,947,385.07

2. Additions for the Period 39,893.28 39,893.28— Purchase 39,893.28 39,893.28

3. Reductions for the Period 28,735,200.00 28,735,200.00

Page 84 of 140

Item Software Land Use Rights Trademark Rights Total—Disposal 28,735,200.00 28,735,200.00

4.Period-End Balance 5,428,044.57 415,718,033.78 126,106,000.00 547,252,078.35

II. Accumulated Amortization

1. Beginning Balance 4,669,207.87 88,706,671.21 86,891,075.17 180,266,954.25

2. Additions for the Period 241,514.51 9,039,551.17 6,875,807.42 16,156,873.10— Amortization 241,514.51 9,039,551.17 6,875,807.42 16,156,873.10

3. Reductions for the Period 19,755,358.88 19,755,358.88—Disposal 19,755,358.88 19,755,358.88

4.Period-End Balance 4,910,722.38 97,746,222.38 74,011,523.71 176,668,468.47III. Impairment Provision

1.Beginning period

2. Additions for the Period

3. Reductions for the Period

4.Period-End BalanceIV.Book Value

1.Ending Book Value 517,322.19 317,971,811.40 52,094,476.29 370,583,609.88

2.Beginning Book Value 718,943.42 327,011,362.57 67,950,124.83 395,680,430.82

15. Goodwill

（1） Goodwill Original Value

Invested

Unit or

MatterFormingGoodwill

Beginning

period

Current Period Increase Current Period Decrease

Period-End BalanceFormed byBusinessCombination

CurrentPeriodAdjustments

Other Disposal

CurrentPeriodAdjustments

OtherAcquisitionof ZhejiangXiaoWangziFood Co.,Ltd.

191,394,422.51 191,394,422.51Total 191,394,422.51 191,394,422.51

（2） Relevant Information of the Asset Group or Asset Group Combination

Containing Goodwill

Name

Composition and Basis of the Asset

Group or Combination

Business Division and

Basis

Consistency with

Previous YearsAcquisition ofZhejiang XiaoWangzi FoodCo., Ltd.

The asset group contains assetsrelated to goodwill, and its cashinflow is independent of other assetgroups.

The asset is mainlyused in foodprocessing, belongingto the food processingdivision.

Yes

（3） Specific Determination Method for Recoverable Amount

Page 85 of 140

The recoverable amount is determined based on the present value of future cashflows.

Unit: Ten thousand yuan

Item

BookValue

RecoverableAmount

ImpairmentAmount

Forecast

Period(Years)

KeyParametersfor ForecastPeriod

KeyParametersfor StablePeriod

Basis forDeterminingKeyParametersfor Stable

PeriodAcquisitionof ZhejiangXiao WangziFood Co.,Ltd.

71,207.29 58,314.80 12,892.49 2026 - 2030

Averagerevenuegrowth rate

6.98%, pre-

tax discountrate 13.72%

Stableperiodrevenuegrowth rate0%, pre-taxdiscountrate 13.72%

The pre-taxdiscount rateis determinedbased on therisk-free rateof return,market riskpremium, riskcoefficient,cost of equitycapital, andthe incometax rate.Total 71,207.29 58,314.80 12,892.49 —— —— —— ——Note: The goodwill impairment Amount arising from the acquisition of the equity of ZhejiangLittle Prince Food Co., Ltd. is RMB 128,924,931.69, of which the impairment loss attributable tothe parent company is RMB 65,762,029.16.

（4） Goodwill impairment provision

Name of the investeeor item giving rise togoodwill

Beginning

period

Increase during the

erio

Decrease duringthe perio

Period-EndBalanceProvision Others Disposal OthersAcquisition of equityof Zhejiang LittlePrince Food Co., Ltd.

d

65,762,029.16

65,762,029.16Total

65,762,029.16 65,762,029.16

16. Long-Term Deferred Expenses

Item

Beginning

erio

Increase during

the

erio

Amortizationdurin

the

erio

Other decreasesdurin

the

erio

Period-End

BalanceFactoryRenovation(Majuqiao)

12,191,567.81 674,188.08 11,517,379.73Leased AssetMaintenance& Renovation

1,940,073.46 145,302.10 1,794,771.36WorkshopRenovationMaintenance

733,581.81 235,478.52

498,103.29BuildingRenovation &Modification

2,538,015.10 3,370,247.99 814,945.00 2,228,774.54 2,864,543.55Total 17,403,238.18 3,370,247.99 1,869,913.70 15,540,925.63 3,362,646.84

Page 86 of 140

17. Deferred Tax Assets/Deferred Tax Liabilities

（1） Deferred tax assets before offsetting

Item

Period-End Balance Beginning periodDeductibleTemporaryDifferences

Deferred TaxAssets

DeductibleTemporaryDifferences

Deferred TaxAssetsProvision for credit impairment 50,152,256.47 12,538,064.11 1,081,179.07 270,294.77Provision for asset impairment 2,669,362.22 667,340.56 14,200,339.20 3,550,084.80Valuation of financial instrumentsand derivative financialinstruments

3,572,045.80 893,011.45Lease liabilities 166,205,889.35 41,551,472.34 74,957,822.23 18,739,455.57Deductible tax losses 74,064,292.97 18,516,073.24 124,470,315.23 31,117,578.79Deferred income 14,835,521.81 3,708,880.45 14,203,242.12 3,550,810.53Employee compensation payable 5,321,134.00 1,330,283.50 5,627,134.00 1,406,783.50Contract Rebates 1,987,981.50 496,995.38 823,272.82 205,818.21Expected Liabilities 5,146,800.00 1,286,700.00

Total 318,808,484.12 79,702,121.03 240,510,104.67 60,127,526.17

（2）Deferred Tax Liabilities before Offsetting

Item

Period-End Balance Beginning periodTaxable TemporaryDifferences

Deferred TaxLiabilities

Taxable Temporary

Differences

Deferred Tax

LiabilitiesValuation offinancialinstruments andderivative financialinstruments

6,320,422.21 1,580,105.55 73,663,915.05 18,415,978.76Right-of-UseAssets

165,115,356.93 41,278,839.23 72,451,773.67 18,112,943.43Non-Same ControlBusinessCombination AssetValuationIncrement

116,528,641.92 29,132,160.48 125,660,049.32 31,415,012.33Total 287,964,421.06 71,991,105.26 271,775,738.04 67,943,934.52

（3）Net Deferred Tax Assets or Liabilities After Offsetting

Item

Ending Balance Beginning BalanceDeferred TaxAssets OffsettingAmount

Net Deferred TaxAssets (After

Offsetting)

Deferred TaxAssets Offsetting

Amount

Net Deferred Tax

Assets (After

Offsetting)I. Deferred tax assets 42,858,944.78 36,843,176.25 36,528,922.19 23,598,603.98II. Deferred tax liabilities 42,858,944.78 29,132,160.48 36,528,922.19 31,415,012.33

（4）Unrecognized Deferred Tax Assets

Page 87 of 140

Item Period-End Balance Beginning periodDeductible Temporary Differences 58,415,648.60 19,626,834.31Deductible Losses 327,283,562.80 193,392,087.31

Total 385,699,211.40 213,018,921.62

（5）Deductible tax losses for which deferred tax assets have not been recognizedwill expire in the following years

Year Period-End Balance Beginning period Remarks2025 ——

2026 29,295,158.76 29,423,788.842027 60,063,347.60 58,679,866.782028 83,640,475.86 80,435,449.462029 72,064,767.83 24,852,982.232030 82,219,812.75

Total 327,283,562.80 193,392,087.31 ——

18. Other Non-Current Assets

Item

Period-End BalanceBook Balance

Impairment

Provision

Book ValuePrepaid Long-Term Asset Purchases 9,281,092.22 9,281,092.22

Total 9,281,092.22 9,281,092.22（Continuing Table）

Item

Beginning periodBook Balance Impairment Provision Book ValuePrepaid Long-Term Asset Purchases 5,682,032.40 5,682,032.40

Total 5,682,032.40 5,682,032.40

19. Assets with restricted ownership or right of use

Item

Ending-periodBook Balance Book Value Type

RestrictionSituationCash 33,411,335.64 33,411,335.64 Guarantee Deposit

GuaranteeDeposi

Fixed Assets 21,719,189.02 4,167,145.29 Legal Freeze Legal FreezeInvestment Properties 19,594,735.46 4,520,056.97 Legal Freeze Legal Freeze

Total 74,725,260.12 42,098,537.90 —— ——（Continuing Table）

Page 88 of 140

Item

Beginning-periodBook Balance Book Value Type

Restriction

SituationCash 21,505,947.53 21,505,947.53 Guarantee Deposit

Guarantee

Deposi

Fixed Assets 21,719,189.02 4,580,904.04 Legal Freeze Legal FreezeInvestment Properties 19,594,735.46 4,858,318.61 Legal Freeze Legal Freeze

Total 62,819,872.01 30,945,170.18 —— ——

20. Short-Term Borrowings

（1） Short-term borrowings by category

Item Period-End Balance Beginning periodCredit Loans 1,136,260,975.85 1,311,609,177.78

Total 1,136,260,975.85 1,311,609,177.78Including: Interest payable 544,943.05 1,609,177.78

21. Derivative Financial Liabilities

Item

Period-EndBalance

Beginning

tp

erio

Cause of originFair Value Changes in Hedging Instruments 3,815,280.00 30,979,464.00

Total 3,815,280.00 30,979,464.00 ——

22. Notes payable

Category Period-End Balance Beginning periodBank acceptance bills 56,649,763.00

Total 56,649,763.00

23. Accounts Payable

（1） Breakdown of Accounts Payable

Item Period-End Balance Beginning periodPayable for Materials 47,834,239.89 116,601,554.59Payable for Engineering 13,248,688.94 1,765,477.00Payable for Equipment 28,140.00 1,964,645.00Consulting Service Fee 920,480.25 496,573.78Leasing Fee

3,694,464.27Storage Fee 2,073,066.67 2,016,713.57Other 2,169,241.37 1,339,837.19

Total 66,273,857.12 127,879,265.40

Page 89 of 140

24. Advances from Customers

（1） Breakdown of Advances

Item Period-End Balance Beginning periodPrepaid Rent 1,670,875.73 1,122,982.13

Total 1,670,875.73 1,122,982.13

25. Contract Liabilities

（1） Breakdown of Contract Liabilities

Item Period-End Balance Beginning periodLoan 275,724,804.27 522,256,930.34Service Fees 9,900.99Other 423.65

Total 275,724,804.27 522,267,254.98

26. Employee Compensation Payable

（1） Breakdown of Employee Compensation Payable

Item

Beginning

erio

Increase Decrease

Period-End

BalanceI. Short-Term Compensation 25,205,707.33 281,996,546.81 282,008,668.85 25,193,585.29II. Post-EmploymentBenefits

2,497,429.33 38,643,971.29 38,235,559.07 2,905,841.55III. Termination Benefits

2,856,739.27 1,602,710.27 1,254,029.00IV. Other 15,785.37 15,785.37

Total 27,703,136.66 323,513,042.74 321,862,723.56 29,353,455.84

（2）Breakdown of Short-Term Compensation

Item

Beginning

erio

Increase Decrease

Period-EndBalanceI.Salary, Bonuses,Allowances

21,026,120.00 225,312,258.68 225,535,672.39 20,802,706.29II.Employee WelfareFees

47,400.00 7,012,945.77 7,040,020.27 20,325.50III.Social InsuranceFees

1,101,651.76 21,084,426.11 21,099,962.08 1,086,115.79Including：MedicalInsurance

1,006,336.66 19,953,694.98 19,941,208.62 1,018,823.02Work InjuryInsurance

95,315.10 1,130,731.13 1,158,753.46 67,292.77IV.HousingProvident Fun

128,868.75 17,299,992.75 17,287,983.00 140,878.50V.Union andEmplo

dy

ee Education

2,677,378.31 4,584,830.86 4,587,469.46 2,674,739.71

Page 90 of 140

Item

Beginning

erio

Increase Decrease

Period-End

BalanceVI.Other Short-TermCompensation

224,288.51 6,702,092.64 6,457,561.65 468,819.50Total 25,205,707.33 281,996,546.81 282,008,668.85 25,193,585.29

（3）Presentation of defined contribution plans

Item Beginning period Increase Decrease

Period-EndBalanceI. Basic PensionInsurance

2,394,170.46 33,182,185.82 32,801,614.70 2,774,741.58II. UnemploymentInsurance

56,466.82 1,041,111.53 1,040,497.68 57,080.67III. CorporatePension Pa

men

46,792.05 4,420,673.94 4,393,446.69 74,019.30Total 2,497,429.33 38,643,971.29 38,235,559.07 2,905,841.55

27. Taxes Payable

Item Period-End Balance

Beginning

erio

Value Added Tax 29,296,775.82 6,437,878.04Corporate Income Tax 2,223,946.93 2,742,466.65City Maintenance and Construction Tax 1,452,582.88 361,760.50Property Tax 1,769,241.11 7,464,168.71Land Use Tax 1,093,470.51 996,814.98Personal Income Tax 609,990.36 1,515,360.06Education Fee Surcharge (including Local Education Fee) 1,430,441.63 296,495.58Other Taxes 328,288.94 184,430.00

Total 38,204,738.18 19,999,374.52

28. Other Payables

Item Period-End Balance Beginning periodInterest Payable 20,000,000.00 20,000,000.00Other Payables 42,493,915.38 38,529,914.31

Total 62,493,915.38 58,529,914.31

（1）Interest Payable

Item Period-End Balance Beginning periodInterest on Intercompany Loans 20,000,000.00 20,000,000.00

Total 20,000,000.00 20,000,000.00

（2） Other Payables

Page 91 of 140

① Breakdown of Other Payables by Nature

Item Period-End Balance Beginning period

Related Party Transactions558,574.25 3,669,472.80Deposits and Guarantees26,526,699.27 26,389,861.74Interunit Transactions9,082,778.49 2,527,587.55Personal Transactions769,967.93 651,768.84Employee Insurance3,902,761.56 1,892,167.70Storage Fees1,595,833.71Others

1,653,133.88 1,803,221.97Total 42,493,915.38 38,529,914.31

29. Non-current Liabilities Due Within One Year

Item Period-End Balance Beginning periodLong-term Loans Due Within One Year 68,000,000.00 529,000,000.00Bonds payable due within one year 299,700,000.00

Lease Liabilities Due Within One Year 5,284,537.08 11,512,646.62Interest on Long-term Loans Due Within One Year 455,213.61 272,983.32Interest on Bonds Due Within One Year 2,880,000.00 2,880,000.00

Total 376,319,750.69 543,665,629.94

30. Other Current Liabilities

Item Period-End Balance Beginning periodSales Tax Payable to be Written Off 34,674,941.36 53,414,020.52Fair Value Changes on Hedging Items 2,125,165.80 43,966,054.23

Total 36,800,107.16 97,380,074.75

31. Long-term Loans

Item

Ending Book Value

Including：Amount

Due Within One

Yea

Ending Balance

Credit Loans

644,500,000.00 68,000,000.00 576,500,000.00Total 644,500,000.00 68,000,000.00 576,500,000.00（Continuing Table）Item

Beginning Book Value

Including：AmountDue Within One Year

Beginning Balance

Credit Loans

529,000,000.00 529,000,000.00

Page 92 of 140

Item

Beginning Book Value

Including：AmountDue Within One Year

Beginning Balance

Total 529,000,000.00 529,000,000.00

32. Bonds Payable

（1） Bonds Payable

Item Period-End Balance Beginning periodCorporate Bonds 299,250,000.00Total 299,250,000.00

（2） Details of Bonds Payable (Excluding Preferred Stocks, Perpetual Bonds,

and Other Financial Instruments Classified as Financial Liabilities)BondName

Face Value

CouponRate（%）

Issue Date

BondTerm

Issue Amount

BeginningBook Value

Including:

Amount DueWithin One

Yea

Jingliang

CorporateBon

rd

300,000,000.00 2.88

2023.8.21-

8.22

3 years 300,000,000.00 299,250,000.00

d

Total —— —— —— —— 300,000,000.00 299,250,000.00

（Continuing Table）BondName

Amount

IssuedThis

Period

InterestAccrued(Face Value)

Amortization ofPremium/Discount

RepaymentThis Period

Ending Book

Value

Including:

Amount DueWithin One

Yea

r

DefaultStatus

Jingliang

CorporateBon

rd

d

8,640,000.00 -450,000.00 8,640,000.00 299,700,000.00 299,700,000.00 NoTotal

8,640,000.00 -450,000.00 8,640,000.00 299,700,000.00 299,700,000.00 ——

33. Lease Liabilities

Item Period-End Balance Beginning periodLease Payment Amount 201,310,577.51 66,639,136.63Less: Unrecognized Financing Costs 60,574,401.86 4,426,429.08Reclassified to Non-current Liabilities DueWithin One Yea

r

5,284,537.08 11,512,646.62Net Lease Liabilities 135,451,638.57 50,700,060.93

34. Long-term Employee Benefits Payable

Page 93 of 140

（1） Table of Long-term Employee Benefits Payable

Item Period-End Balance Beginning period

Other Long-term Benefits5,321,134.00 5,627,134.00Total 5,321,134.00 5,627,134.00

35. Provisions

Item Period-End Balance Beginning period Reason for FromationPending Letigation 22,650,893.15 5,146,800.00

Total 22,650,893.15 5,146,800.00 ——

36. Deferred Income

Item

Beginningperiod

Increase ThisPeriod

DecreaseThis Period

Period-End

Balance

Reason

forFormationGovernmentSubsid

y

56,731,497.62 2,794,848.15 53,936,649.47

y

Total 56,731,497.62 2,794,848.15 53,936,649.47 ——

37. Share Capital

Shareholder

Name

Beginning

period

Changes This Period (+, -)

Period-End

BalanceIssuanceof NewShares

BonusShares

CapitalReserveConversion

to Shares

Other SubtotalTotalShares

726,950,251.00

726,950,251.00

38. Capital Reserves

Item Beginning period

IncreaseThis Perio

DecreaseThis Perio

Period-End

BalanceCapital (Share Capital) Premium 1,435,204,343.74

1,435,204,343.74Other Capital Reserves 248,469,614.28

248,469,614.28Total 1,683,673,958.02 1,683,673,958.02

39. Other Comprehensive Income

Page 94 of 140

Item Beginning period

Current Period AmountPre-taxamount forthe currentperiod

Less: AmountTransferred from

Other

ComprehensiveIncome to Profitor Loss

Less: AmountTransferred fromOtherComprehensiveIncome toRetainedEarnin

s

Less:

IncomeTaxExpenses

1.Other

ComprehensiveIncome NotReclassifiable toProfit or Loss

2.Other

ComprehensiveIncome Reclassifiableto Profit or Loss

1,763,043.44 -703,468.52Foreign CurrencyTranslationDifferences

1,763,043.44 -703,468.52

Total othercomprehensiveincome

1,763,043.44 -703,468.52

（Continuing Table）

Item

Current Period Amount

Period-End

BalanceIncome TaxEffect for the

Period

After-Tax AmountAttributable to theParent Company

After-Tax AmountAttributable to Minority

ShareholdersI.OtherComprehensiveIncome that will notbe reclassified to

gp

rofit or loss.

II.OtherComprehensiveIncome that will bereclassified to profitor loss.

-703,468.52 -703,468.52 1,059,574.92Foreign CurrencyTranslationDifferences

-703,468.52 -703,468.52 1,059,574.92Total OtherComprehensiveIncome

-703,468.52 -703,468.52 1,059,574.92

40. Surplus Reserves

Item Beginning period Increase Decrease Period-End BalanceStatutory Surplus Reserve 99,783,789.14 7,282,530.20

p

107,066,319.34Discretionary Surplus Reserve 37,634,827.93

37,634,827.93Total 137,418,617.07 7,282,530.20

144,701,147.27

41. Undistributed Profits

Item Current Amount Previous AmountAdjusted Undistributed Profit at Beginning of the Period 593,483,706.16 627,555,511.45

Page 95 of 140

Item Current Amount Previous AmountAdjustment to the total of beginning retained earnings(increase +, decrease -)

-989,931.26Adjusted Undistributed Profit at Ending of the Period 593,483,706.16 626,565,580.19Plus: Net Profit Attributable to Parent Company for thePerio

d

-266,087,957.92 26,130,520.86Less: Statutory Surplus Reserve 7,282,530.20 7,598,927.07Dividends Payable on Common Stock 13,085,105.51 51,613,467.82Ending Undistributed Profit 307,028,112.53 593,483,706.16

42. Operating Revenue and Operating Costs

（1） Operating Revenue and Operating Costs

Item

Current Period Amount

Previous Period AmountRevenue Cost Revenue CostMain Business 7,835,200,308.77 7,456,882,245.69 11,335,771,143.52 10,902,532,360.75Other Business 23,335,538.34 51,763,870.32 99,072,372.75 12,115,723.96

Total 7,858,535,847.11 7,508,646,116.01 11,434,843,516.27 10,914,648,084.71

（2）Breakdown of Operating Revenue and Costs

By Contract Classification Revenue Cost

The type of product

d

Principal business:

Oil 7,127,297,998.76 6,877,489,780.98Food 689,488,843.03 559,113,703.99Other 18,413,466.98 20,278,760.72Subtotal 7,835,200,308.77 7,456,882,245.69

Other business:

Other 23,335,538.34 51,763,870.32Subtotal 23,335,538.34 51,763,870.32

Total 7,858,535,847.11 7,508,646,116.01By Operating Region

North 4,999,999,360.00 4,824,286,322.57East 1,255,330,748.77 1,147,885,611.25Northeast 351,084,839.40 327,640,412.96South 83,173,200.05 78,247,757.03Northeast 670,334,256.43 651,218,302.69Other 498,613,442.46 479,367,709.52

Page 96 of 140

By Contract Classification Revenue Cost

Total 7,858,535,847.11 7,508,646,116.01Classified by the timing of transfer

of

oods

g

At a specific point in time 7,858,535,847.11 7,508,646,116.01

Total 7,858,535,847.11 7,508,646,116.01The classification by sales channel

Direct sales 3,587,404,822.95 3,464,016,401.21Distributors 4,247,795,485.82 3,992,865,844.48Other 23,335,538.34 51,763,870.32

Total 7,858,535,847.11 7,508,646,116.01

（3） Explanation of Performance Obligations

Item

Performance

ObligationFulfillment

Time

KeyPayment

Terms

Nature of

GoodsCommitted to

Transfer

PrimaryObligationResponsible

Party

AmountExpected tobe Returnedto Customers

Type of Quality

GuaranteeProvided &

RelatedObligationsOil andoilseedprocessingand sales, andfoodprocessingand sales

Upon deliveryand acceptanceby the customer

Primarilyadvancepayment

beforedelivery

Mainlyengaged in thesales of oil andoilseeds, andsnack foods.

Yes None

Statutory

warranty

Note: In terms of settlement methods, the company and its distributors primarily use the advancepayment before delivery method. For some long-term cooperative and creditworthy distributors, thecompany provides a certain credit limit. Some direct sales customers and supermarkets settle accordingto the contractual agreed payment period.

（4） Explanation of Remaining Performance Obligations

Item AmountRevenue corresponding to signed contracts that have not yet beenfulfilled or completed b

the end of this reportin

perio

275,724,804.27—Expected revenue to be recognized in 2026

275,724,804.27

43. Taxes and Surcharges

Item

Current Period Amount

Previous Period AmountUrban Maintenance and Construction Tax

5,431,226.73 3,636,611.72Property Tax 10,122,782.93 13,097,397.94Land Use Tax 2,629,901.69 2,446,590.59Education Fee Surcharge 4,403,488.27 2,741,190.20Land value-added tax 59,634.45Vehicle and Vessel Usage Tax 31,443.98 38,109.50Environmental Protection Tax 35,597.08 66,365.17

Page 97 of 140

Item

Current Period Amount

Previous Period AmountStamp Duty 6,672,076.51 8,918,488.40Other Taxes and Fees 63,610.08 285.11

Total 29,449,761.72 30,945,038.63

44. Sales Expenses

Item

Current Period Amount

Previous PeriodAmoun

Employee Compensation 70,094,169.86 70,273,163.60Warehousing and Storage Fees 25,652,062.90 19,229,919.38Depreciation Expense 17,005,215.02 16,866,196.27Promotion Expenses 12,595,531.64 14,968,467.76Material Consumption and Losses 6,196,316.82 4,558,864.92Travel Expenses 4,340,396.72 4,214,616.80Lease Expenses 6,586,020.25 2,174,672.28Office Expenses 1,888,081.82 1,484,310.25Repair Expenses 2,968,067.05 1,444,300.03Utilities 1,255,732.66 1,229,238.36Vehicle Expenses 713,481.47 871,730.11Business Reception Expenses 276,426.09 509,618.37Insurance Expenses 361,014.25 364,354.71Packaging Expenses 264,662.60 341,091.01Inspection and Testing Expenses 302,649.10 206,603.46Loading and Unloading Expenses 22,641.51 118,856.33Labor Protection Expenses 78,244.19 93,474.09Other 3,766,356.59 1,568,941.69

Total 154,367,070.54 140,518,419.42

45. Administrative Expenses

Item Current Period Amount Previous Period AmountEmployee Compensation 123,881,221.24 127,972,209.14Depreciation Expense 17,792,807.40 16,226,625.52Amortization of Intangible Assets 15,978,654.28 14,323,916.32Office Expenses 7,671,537.92 7,395,582.62Lease Expenses 11,031,650.84 5,977,264.11Fees for Engaging Intermediaries 12,913,862.54 6,438,726.56Repair Expenses 7,087,141.97 4,034,279.79Security and Protection Expenses 911,640.94 1,401,532.72Travel Expenses 1,063,100.40 1,258,181.33Information and Network Expenses 1,418,172.49 1,147,485.11

Page 98 of 140

Item Current Period Amount Previous Period AmountInsurance Expenses 1,354,469.98 1,135,356.00Business Reception Expenses 802,303.83 1,101,072.91Environmental Protection Expenses 951,659.49 913,233.20Amortization of Prepaid Expenses 282,244.21 887,684.08Director’s Expenses

299,999.88 299,999.88Vehicle Expenses 593,125.36 690,796.45Material Consumption 307,844.95 560,692.04Labor Protection Expenses 80,787.58 103,200.04Conference Expenses 32,387.30 64,892.64Court Expenses 1,853,272.91 505,290.56Other 7,168,309.66 6,792,998.62

Total 213,476,195.17 199,231,019.64

46. Research and Development Expenses

Item Current Period Amount Previous Period AmountSalary 10,497,135.48 13,594,553.19Material Costs 2,630,634.68 5,544,119.46Material Consumption 1,116,905.78 1,268,715.98Depreciation and Amortization 774,165.13 1,289,462.62Fuel and Power Costs 1,025,717.44 779,758.88Travel Expenses 59,857.17 72,184.10Equipment Costs 2,166.94 14,946.90Other 3,167,860.50 2,418,727.49

Total 19,274,443.12 24,982,468.62

47. Financial Expenses

Item

Current Period

Amoun

Previous PeriodAmoun

Total interest expense 65,081,667.94 60,492,426.83Net interest expense 65,081,667.94 60,492,426.83Less: Interest income 14,028,391.88 17,628,504.01Discount interest on bank acceptance bills 8,216,509.93

Net exchange loss (net gain presented with “–”) -2,433,950.20 776,053.73Handling fee expense 1,578,506.78 1,740,795.52Other expenses 14.00

Total 58,414,356.57 45,380,772.07

48. Other Income

Page 99 of 140

Item Current Period Amount Previous Period AmountIndividual income tax handling fee refund 160,126.53 222,588.13Additional input VAT credit deduction 343,099.33

Government subsidy 14,077,503.48 18,808,559.96Other 47,369.98 273.00

Total 14,628,099.32 19,031,421.09

49. Investment Income

Investment Income

Current PeriodAmoun

Previous PeriodAmoun

Investment income from long-term equity investmentsaccounted for usin

the equit

metho

-232,498.70 12,546,903.92Other 1,216,408.91

Total 983,910.21 12,546,903.92

50. Fair Value Change Gains

Source of Fair Value Change Gains

Current PeriodAmount

Previous Period

Amoun

dt

Trading Financial Assets -59,953,281.42 -116,999,895.87Of which: Fair Value Change of Hedging Instrumentsand Hed

tg

ed Items

-59,953,281.42 -116,999,895.87Total -59,953,281.42 -116,999,895.87

51. Credit Impairment Losses

Item Current Period Amount Previous Period AmountBad Debt Losses on Accounts Receivable -90,578.15 6,734,035.01Bad Debt Losses on Other Receivables

-35,017,187.44 1,779.74

Total -35,107,765.59 6,735,814.75

52. Asset Impairment Losses

Item Current Period Amount Previous Period AmountInventory Write-down Loss -24,887,754.24 -13,819,833.62Impairment loss on fixed assets -18,446,354.30

Impairment loss on goodwill -65,762,029.16

Total -109,096,137.70 -13,819,833.62

53. Gains on Asset Disposal

Page 100 of 140

Item

Current PeriodAmount

Previous PeriodAmount

Amount Includedin Non-RecurringGains and LossesGain or loss on disposal of fixed assets -4,383,111.33 63,830.72 -4,383,111.33Gain or loss on disposal of intangible assets 16,255,536.24 16,255,536.24Gain or loss from terminationor modification of lon

-term lease contracts

2,835,797.15 2,835,797.15Total 14,708,222.06 63,830.72 14,708,222.06

54. Non-Operating Income

Item

Current Period

Amount

Previous Period

Amount

Amount Included inNon-Operating Gainsand LossesNon-Current Asset Destructionor Scrap Gain

11,002.10 131,658.82 11,002.10Inventory surplus gain 11,631.09

11,631.09Fines, Penalties, Late Fees,and Compensation Income

3,407,093.59 53,728.00 3,407,093.59Demolition compensation income 10,955,322.00

10,955,322.00Payables no longer required to be paid 68,795.16 9,952,534.05 68,795.16Scrap Disposal Income 1,004.42 60,218.08 1,004.42Other 134,774.57 1,050,933.48 134,774.57

Total 14,589,622.93 11,249,072.43 14,589,622.93

55. Non-Operating Expenses

Item

Current PeriodAmount

Previous Period Amount

Amount Included in

Non-OperatingGains and LossesNon-Current AssetDestruction or Scrap Loss

663,189.06 163,623.76 663,189.06Late Fees 48,303.53 9,166.34 48,303.53Inventory Loss 998,229.83 7,970.33 998,229.83Penalties, Compensation 3,539,319.07 336,961.15 3,539,319.07Litigation CompensationExpenses

15,344,724.00 5,000,000.00 15,344,724.00Other12,237.11 77,682.10 12,237.11Total 20,606,002.60 5,595,403.68 20,606,002.60

56. Income Tax Expense

（1） Income Tax Expense Table

Item Current Period Amount Previous Period AmountCurrent Income Tax Expense 9,763,263.53 18,504,508.70Deferred Income Tax Adjustment -15,527,424.12 -30,466,799.96

Page 101 of 140

Item Current Period Amount Previous Period AmountTotal -5,764,160.59 -11,962,291.26

（2）Reconciliation of Accounting Profit and Income Tax Expense

Item

Current PeriodAmoun

Total Profit

-304,945,428.81Income Tax Expense Calculated at Statutory/Applicable Tax Rate -76,236,357.19Effect of Different Tax Rates for Subsidiaries 3,538,095.55Effect of Adjustments to Prior Period Income Tax

193,542.12Effect of Non-Taxable Income -102,954.81Effect of Non-Deductible Costs, Expenses, and Losses 18,885,600.41Impact of utilizing deductible tax losses for which deferred tax assets were notreco

tg

nized in prior periods

9,573,993.54Impact of deductible tax losses for which deferred tax assets were not recognizedin the current perio

gd

21,351,804.61Impact of deductible temporary differences for which deferred tax assets were notreco

dg

nized in the current perio

7,958,168.56Impact of additional tax deduction for R&D expenses and wages of disabledemplo

ees

-3,774,949.90Impact of non-taxable investment income -1,508,515.57Impact of reversal of deferred tax assets recognized at the beginning of the period 14,079,798.04Accelerated depreciation of fixed assets 631,948.28Other -354,334.23

Income tax expense -5,764,160.59

57. Other Comprehensive Income

Please refer to Note V.39 Other Comprehensive Income for detailed information.

58. Cash Flow Statement Items

（1） Cash Related to Operating Activities

① Cash Received from Other Operating Activities

Item Current Period Amount Previous Period AmountRelated Party Transactions

19,462,887.52 10,190,180.58Deposits and Guarantees 1,430,954,532.04 4,775,548,384.38Other Unit Transactions 49,419,787.13 68,187,505.79Interest Income 9,480,246.63 13,207,645.63

Page 102 of 140

Item Current Period Amount Previous Period AmountNon-Operating Income & Other Gains 2,707,605.71 8,810,598.64Collections for Others 5,699,493,171.70 2,549,941,162.71Other 42,257,436.16 29,599,109.83

Total 7,253,775,666.89 7,455,484,587.56

②Cash Paid for Other Operating Activities

Item Current Period Amount Previous Period AmountExpense Payments 89,867,289.60 74,785,966.59Other Unit Transactions 49,532,355.14 46,871,640.12Related Party Transactions 36,280,872.29 15,379,839.85Petty Cash 60,500.00 90,000.00Deposits and Guarantees 1,184,541,744.32 4,692,659,820.38Collections for Others 5,699,493,171.70 2,549,941,162.71Other 54,416,664.53 83,696,364.64

Total 7,114,192,597.58 7,463,424,794.29

（2） Cash Related to Investing Activities

① Other cash paid relating to investing activities

Item Current Period Amount Previous Period AmountHebei Oilseed Investment Withdrawal 1,747,611.95

Total 1,747,611.95

（3） Cash Related to Financing Activities

① Cash Received from Other Financing Activities

Item Current Period Amount Previous Period AmountCapital contribution from CapitalA

ribusiness Group for research subsidies

840,000.00

Total 840,000.00

②Cash Paid for Other Financing Activities

Item Current Period Amount Previous Period AmountLease Payments

48,020,107.53 15,224,400.00

Total 48,020,107.53 15,224,400.00

Page 103 of 140

③ Changes in Liabilities Arising from Financing Activities

Item Beginning period

Period-Increase Period-Decrease

Period-End BalanceCash Changes Non-Cash Changes Cash Changes Non-Cash ChangesShort-term

orrowings

1,311,609,177.78 3,533,352,814.46 26,771,774.82 3,735,472,791.21 1,136,260,975.85Long-term

bb

orrowings

529,272,983.32 650,000,000.00 14,405,524.16 548,723,293.87 644,955,213.61Bondspayable

302,130,000.00 9,090,000.00 8,640,000.00 302,580,000.00Leaseliabilities

62,212,707.55 236,643,940.20 45,237,595.87 112,882,876.23 140,736,175.65Interestpayable

20,000,000.00 20,000,000.00Dividendspayable

13,085,090.17 13,085,090.17Total

2,225,224,868.65 4,183,352,814.46

299,996,329.35 4,351,158,771.12 112,882,876.23 2,244,532,365.11

Page 104 of 140

59. Supplementary Information for the Cash Flow Statement

（1） Supplemental Information to the Cash Flow Statement

Supplemental Information

Current Period

Amoun

Previous Period

Amoun

1. Adjusting Net Profit to Operating Activities' Cash

Flow：

—— ——Net profit -299,181,268.22 4,311,914.18Add: Asset impairment loss 109,096,137.70 13,819,833.62Credit impairment loss 35,107,765.59 -6,735,814.75Depreciation of fixed assets, oil and gas assets,and biolo

ical assets

98,546,674.07 98,532,989.69Depreciation of right-of-use assets 28,131,942.57 24,678,301.11Amortization of intangible assets 13,550,658.86 14,407,936.72Amortization of long-term prepaid expenses 1,869,913.70 1,446,354.13Loss (or gain) on disposal of fixed assets,intangible assets, and other long-term assets (income islisted with a "-" si

gg

n)

-14,708,222.06 -63,830.72Loss on retirement of fixed assets (income is listedwith a "-" si

gg

n)

652,186.96 31,964.94 Fair value change loss (Gain is marked with "-"columns)

59,953,281.42 116,999,895.87Finance expenses (income is indicated with a "-") 85,392,590.29 77,015,661.77Investment losses (gains are listed with a "-" sign) -983,910.21 -12,546,903.92 Deferred tax assets decreased (increased with a "-" si

gg

n)

-13,244,572.27 -14,799,688.76Deferred tax liabilities increased (decreased by "-"si

gg

n)

-2,282,851.85 -15,667,111.20Decrease in inventories (increase by "-") 924,976,600.21 -329,668,276.06Decrease in operating receivables (increase with"-" si

gg

n)

-255,490,832.27 -76,364,386.07Increase in operating payables (decrease by "-"si

gg

n)

-124,609,392.99 -4,869,562.50OtherNet cash flow from operating activities 646,776,701.50 -109,470,721.95

2. Significant investment and financing activities that do

not involve cash receipts and expenditures:

—— ——

3. Net change in cash and cash equivalents: —— ——Cash at Period-End Balance 1,788,311,181.44 1,395,519,746.77Less: Cash at Beginning period 1,395,519,746.77 1,540,639,079.95Add: Cash equivalents at Period-End BalanceLess: Cash equivalents at Beginning periodNet increase in cash and cash equivalents 392,791,434.67 -145,119,333.18

（2）Composition of Cash and Cash Equivalents

Page 105 of 140

Item Ending balance Beginning balanceI. Cash 1,788,311,181.44 1,395,519,746.77Including: Cash on hand 10,241.76 10,717.74Bank deposits available for immediate use 1,725,447,216.11 1,325,403,161.84Other funds available for immediate use 62,853,723.57 70,105,867.19II. Cash equivalentsIII. Closing cash and cash equivalents balances 1,788,311,181.44 1,395,519,746.77

60. Monetary items in foreign currencies

（1） Monetary items in foreign currency

Item

Closing ForeignCurrenc

Balance

Translation Exchange

Rate

Translation at the end of the

erio

Monetary funds —— —— 25,155,525.27Including: USD 3,578,921.76 7.0288 25,155,525.27

61. Lease

（1） Tenant information

Item Amount

Interest expense on lease liabilities 4,479,427.69Simplified short-term lease charges including cost of related assets or current

dp

rofit or loss

8,948,472.32

Total lease-related cash outflows 33,013,756.28

（2） Operating lease as lessor

① Operating leases as the lessor

ItemRental income

Including: income related tovariable lease payments that arenot included in lease receiptsRental income 4,579,040.24

Total 4,579,040.24

VI. R&D expenditure

1. Listed by nature of fees

Item Current Period Amount Previous Period Amount

Salary 10,497,135.48 13,594,553.19Material cost 2,630,634.68 5,544,119.46

Page 106 of 140

Item Current Period Amount Previous Period AmountMaterial consumption 1,116,905.78 1,268,715.98Depreciation and amortization expense 774,165.13 1,289,462.62Fuel power cost 1,025,717.44 779,758.88Travel costs 59,857.17 72,184.10Equipment cost 2,166.94 14,946.90Others 3,167,860.50 2,418,727.49

Total 19,274,443.12 24,982,468.62Among them: expensed R&D expenditure 19,274,443.12 24,982,468.62Capitalize R&D expenditures

VII. Change in the scope of consolidationThere was no change in the scope of consolidation during the reporting period.

Page 107 of 140

VIII. Interests in Other Entities

1. Equity Interests in Subsidiaries

（1）Composition of the Corporate Group

Subsidiary Name

PrimaryBusinessLocation

RegisteredCapital (inTen ThousandYuan)

Registered

Location

Business Nature

Shareholding ratio（%）

Acquisition MethodDirectShareholding

IndirectShareholdingJingliang (Tianjin) Grain and Oil IndustryCo., Ltd.

Tianjin 56,000.00 Tianjin

Processing ofagricultural by-

roducts

p

70.00

Business combination under

common control

Beijing Jingliang Oil Co., Ltd.

Beijing

5,000.00

Beijing Grain and oilseed

tradin

g

g

100.00

Business combination under

common control

Beijing Guchuan Oil Co., Ltd.

Beijing

12,558.46

Beijing Grain and oilseed

trading

100.00

Business combination under

common control

Beijing Aisen Lvbao Oil Co., Ltd.

Beijing

5,050.00

Beijing Processing of

agricultural andsideline food

p

roducts

p

100.00

Business combination under

common control

Beijing Tianweikang Oil MarketingCenter Co., Ltd.

Beijing

500.00

Beijing

Warehousing

100.00

Business combination under

common control

Beijing Guchuan Bread Food Co., Ltd.

Beijing

5,550.00

Beijing Food processing

100.00

Business combination under

common control

Zhejiang Little Prince Food Co., Ltd.

Hangzhou

5,156.00

Hangzhou Food processing

17.6794 77.2072

Business combination not

under common control

Hangzhou Lin'an Little Angel Food Co.,Ltd.

Hangzhou

4,900.00

Hangzhou Food processing

17.6794 77.2072

Business combination not

under common control

Liaoning Little Prince Food Co., Ltd. Liaoning 3,000.00 Liaoning

Food processing

17.6794 77.2072

Business combination not

under common control

Page 108 of 140

Subsidiary Name

PrimaryBusinessLocation

RegisteredCapital (inTen Thousand

Yuan)

RegisteredLocation

Business Nature

Shareholding ratio（%）

Acquisition MethodDirectShareholding

IndirectShareholdingLinqing Little Prince Food Co., Ltd. Linqing 2,132.50 Linqing

Food processing

17.6794 77.2072

Business combination notunder common controlHangzhou Lin'an ChunmanyuanA

ricultural Develo

ment Co., Ltd.

Hangzhou 600.00 Hangzhou

Food processing

17.6794 77.2072

Business combination not

under common control

Jingliang (Singapore) International TradeCo., Ltd.

Singapore 643.35 Singapore Grain trading

100.00

Investment establishmentBeijing Jingliang Gubi Oils & Fats Co.,Ltd.

Beijing

5,000.00

Beijing Grain and oilseed

trading

100.00

Investment establishment

Beijing Jing Grain Products Co., Ltd

Beijing

105,658.96

Beijing Investment

mana

g

ement

100.00

g

Business combination undercommon control

Jingliang (Caofeidian) AgriculturalDevelo

p

ment Co., Lt

Tangshan 5,000.00 Tangshan Crop cultivation 51.00

Investment establishment

Jingliang (Yueyang) Grain and OilIndustry Co., Ltd

Hunan 68,000.00 Hunan

Processing ofagricultural by-

p

roducts

65.00

p

Investment establishment

Jingliang (Beijing) Food MarketingMana

g

ement Co., Lt

Beijing 9,010.00 Beijing Commercial services 100.00

Investment establishmentJingliang (Yangpu) Grain and OilIndustry Co., Ltd

Hainan 50,000.00 Hainan

Processing ofagricultural by-

p

roducts

65.00

p

Investment establishment

（2）Important Non-Wholly-Owned Subsidiaries

Subsidiary Name Minority Shareholding (%)

Loss Attributable to MinorityShareholders in Current Perio

d

Dividends Declared toMinorit

Shareholders

Minority Shareholders’ Equity

at Period En

Jingliang (Tianjin) Grain and OilIndustr

dy

Co., Ltd

30.00 -25,180,235.72

159,429,184.49

Page 109 of 140

Subsidiary Name Minority Shareholding (%)

Loss Attributable to MinorityShareholders in Current Perio

Dividends Declared toMinorit

Shareholders

Minority Shareholders’ Equity

at Period En

Zhejiang Little Prince Food Co., Ltd 5.11 4,288,519.31 7,687,328.50 186,056,384.42

（3）Main Financial Information of Important Non-Wholly-Owned Subsidiaries

Subsidiary Name

Period-End Balance

Current Assets Non-current Assets Total Assets Current Liabilities Non-current Liabilities Total LiabilitiesJingliang (Tianjin)Grain and Oil IndustryCo., Lt

dd

1,625,607,063.73 661,343,555.22 2,286,950,618.95 1,140,764,804.72 622,795,199.25 1,763,560,003.97

Zhejiang Little PrinceFood Co., Lt

dd

506,824,937.95 299,866,798.65 806,691,736.60 65,321,476.86 12,472,190.18 77,793,667.04（Continuing Table）Subsidiary Name

Beginning period

Current Assets Non-current Assets Total Assets Current Liabilities Non-current Liabilities Total LiabilitiesJingliang (Tianjin)Grain and Oil IndustryCo., Lt

dd

1,860,100,669.62 685,396,396.29 2,545,497,065.91 1,882,087,225.29 48,045,106.57 1,930,132,331.86

Zhejiang Little PrinceFood Co., Lt

dd

530,330,845.53 310,413,253.53 840,744,099.06 83,362,355.35 18,836,092.53 102,198,447.88（Continuing Table）

Page 110 of 140

Subsidiary Name

Current Period AmountOperating Income Net Profit Total Comprehensive Income

Cash Flow from Operating

ActivitiesJingliang (Tianjin) Grain and OilIndustr

Co., Ltd

3,995,068,448.04 -91,974,119.07 -91,974,119.07 381,763,004.68Zhejiang Little Prince Food Co., Ltd 589,563,586.49 25,663,792.40 25,663,792.40 85,124,374.13（Continuing Table）

Subsidiary Name

Previous Period AmountOperating Income Net Profit Total Comprehensive Income

Cash Flow from Operating

ActivitiesJingliang (Tianjin) Grain and OilIndustr

yy

Co., Ltd

4,610,312,602.62 -81,414,144.97 -81,414,144.97 -227,746,332.44

Zhejiang Little Prince Food Co., Ltd 726,127,696.17 70,622,748.04 70,622,748.04 30,154,130.18

Page 111 of 140

2.Equity Interests in Joint Ventures or Associates

（1）Important Joint Ventures or Associates

JointVenture orAssociateName

PrimaryBusinessLocation

Registered

Location

BusinessNature

Shareholding ratio（%）

AccountingTreatmentMethod forInvestmentin JointVenture orAssociateDirectShareholding

IndirectShareholdingBeijingZhengdaFeedstuffLimitedCompany

Beijing Beijing Manufacturing 50.00

EquitymethodZhongchuGrain(Tianjin)WarehouseandLogisticsCo., Ltd.

Tianjing Tianjing

Warehousing& Transport

30.00

Equitymethod

（2）Main Financial Information of Important Joint Ventures

Item

Period-End Balance /Current Period Amoun

Beginning period /Previous Period Amoun

Beijing ZhengdaFeedstuff Limited

Compan

Beijing Zhengda

Feedstuff Limited

Compan

Current Assets 345,873,214.96 327,856,522.69Including: Cash and cash equivalents 6,457,544.94 13,344,582.35Non-Current Assets 21,173,751.15 21,750,027.11Total Assets 367,046,966.11 349,606,549.80Current Liabilities 62,689,232.60 56,698,809.23Non-Current Liabilities 25,441,151.16 24,967,212.11Total Liabilities 88,130,383.76 81,666,021.34Equity Attributable to Parent Shareholders 278,916,582.35 267,940,528.46Share of Net Assets Attributable to Parent 139,458,291.18 133,970,264.23Book Value of Investment in Joint Venture 139,458,291.18 133,970,264.23

Page 112 of 140

Item

Period-End Balance /Current Period Amoun

Beginning period /Previous Period Amoun

Beijing ZhengdaFeedstuff LimitedCompan

Beijing Zhengda

Feedstuff LimitedCompan

Operating Revenue 267,844,675.40 298,495,469.15Financial Expenses -10,223,651.78 -9,914,634.19Income Tax Expenses 3,734,980.70 3,775,596.96Net Profit 10,976,053.89 11,054,824.97Total comprehensive income 10,976,053.89 11,054,824.97

（3）Main Financial Information of Important AssociatesItem

Period-End Balance / Current

Period Amoun

Beginning period / PreviousPeriod Amoun

Zhongchu Grain (Tianjin)Warehouse and Lo

istics Co., Ltd.

Zhongchu Grain (Tianjin)Warehouse and Lo

istics Co., Ltd.Current Assets 172,497,466.92 107,422,998.85Non-Current Assets 1,026,922,117.36 929,833,741.73Total Assets 1,199,419,584.28 1,037,256,740.58Current Liabilities 158,225,065.61 42,972,048.52Non-Current Liabilities 615,145,591.52 570,055,882.68Total Liabilities 773,370,657.13 613,027,931.20Equity Attributable toParent Shareholders

426,048,927.15 424,228,809.38Share of Net AssetsAttributable to Paren

127,814,678.14 127,268,642.81Book Value ofInvestment in Associate

127,814,678.14 127,268,642.81Operating Revenue 59,455,101.74 97,832,532.36Net Profit 1,812,204.97 19,173,955.86Total comprehensiveincome

1,812,204.97 19,173,955.86

（4）Summary Financial Information of Non-Significant Joint Ventures andAssociates

Item

Period-End Balance /Current Period Amoun

tt

Beginning period /Previous Period Amoun

Associates：

Total Book Value of Investments

6,266,560.98

Page 113 of 140

Item

Period-End Balance /Current Period Amoun

Beginning period /Previous Period Amoun

The total amount calculated based onthe shareholding ratio for the followingitems.

-- Net Profit -6,549,869.47 -85,605.64-- Total Comprehensive Income -6,549,869.47 -85,605.64

（5）Excess losses incurred by joint ventures or associatesName of joint venture

or associate

Cumulativeunrecognizedlosses in prior

eriods

Losses not recognized in thecurrent period (or share of netprofit in the current period)

Cumulativeunrecognized losses

at the end of the

current perio

Jingliang MismiCatering Management(Bei

in

) Co., Ltd.

128,816.34 128,816.34

IX. Government Grants

1. Liabilities Related to Government Grants

FinancialStatement

Item

Beginning

Balance

NewGrantAmountfor thePeriod

AmountRecordedin Non-operating

Incomefor thePeriod

Transferred toOther Incomefor the Period

OtherChanges

for the

Period

Ending Balance

Asset/Income

RelatedDeferredRevenue

56,731,497.62 2,794,848.15 53,936,649.47

Total 56,731,497.62 2,794,848.15 53,936,649.47 ——

2. Government Grants Recorded in Current Profit or Loss Item

Item

Current Period

Amount

Previous Period

Amount

Reported

ItemVAT Immediate Refund 7,548,211.92 7,385,224.08

OtherincomeRelocation Compensation

3,078,110.50

OtherincomeImport Soybean Financial Subsidy

2,165,900.00

OtherincomeInfrastructure Support Subsidy forEnterprises in the Construction Phaseof the Tianjin Lingang IndustrialZone Administrative Committee

1,277,504.16 1,277,504.16

Otherincome

Page 114 of 140

Industrial Zone AdministrativeCommittee

767,281.55

OtherincomeJob Stabilization Subsidy 1,128,588.23 611,411.81

OtherincomeGovernment Support for DebtFinancing Reward

600,000.00

OtherincomeFirst Upgrade to Standard in theEconomic Development ZoneReward

300,000.00

OtherincomeQuality Award Subsidy (MarketRegulatory Bureau)

1,200,000.00 300,000.00

Otherincome2024 Grain Production andMarketing Cooperation ProjectSubsidy

504,900.00

OtherincomeBeijing Grain and Material ReserveBureau "Oil Tank Expansion andWinterization Renovation Project"Subsidy

250,180.92 250,180.92

OtherincomeTianjin Binhai New Area IndustrialTechnology Reform and ParkConstruction Funds and Scientificand Technological Expenditures

222,222.24 222,222.24

OtherincomeSubsidy under preferential taxpolicies for key groups (January–November)

191,100.00 200,200.00

OtherincomeIncentive funds for key sub-brands 200,000.00 200,000.00

OtherincomeGrain storage facility maintenancefunds allocated by the Food andReserves Bureau

149,880.00

OtherincomeSubsidy for the potato chipsproduction line expansion project

911,102.35 143,820.80

OtherincomeSubsidies related to persons withdisabilities

199,389.75 210,972.16

OtherincomeOther 949,203.91 440,951.74

OtherincomeTotal 14,077,503.48 18,808,559.96

X. Risks Related to Financial Instruments

1. Risks of Financial Instruments

The company's main financial instruments include equity investments, debt

Page 115 of 140

investments, loans, accounts receivable, accounts payable, etc. The primary purpose ofthese financial instruments is to finance the company's operations. The company hasvarious other financial assets and liabilities directly arising from operations, such asaccounts receivable and accounts payable.The primary risks associated with the company's financial instruments are credit risk,liquidity risk, and market risk.

（1）Classification of Financial Instruments

1) Book Value of Various Financial Assets as of the Balance Sheet Date

a. December 31, 2025

Financial Asset

Item

Measured atAmortized Cost

Measured at

Fair ValueThrough Profitor Loss

Measured atFair ValueThrough OtherComprehensiveIncome

TotalCash and CashEquivalents

1,821,722,517.08

1,821,722,517.08DerivativeFinancial Assets

AccountsReceivable

98,216,373.71

98,216,373.71OtherReceivables

173,257,419.17

173,257,419.17Non-CurrentAssets DueWithin OneYea

Other CurrentAssets

8,705,942.21

8,705,942.21

b. December 31, 2024FinancialAsset Item

Measured atAmortized Cost

Measured at Fair

Value ThroughProfit or Loss

Measured at Fair

Value Through

OtherComprehensive

Income

TotalCash andCashEquivalents

1,417,025,694.30

r

1,417,025,694.30DerivativeFinancialAssets

70,947,839.67

70,947,839.67Accountsreceivable

91,439,895.13

91,439,895.13Otherreceivables

455,148,011.66

455,148,011.66Non-CurrentAssets Due

10,694,166.66

10,694,166.66

Page 116 of 140

FinancialAsset Item

Measured atAmortized Cost

Measured at FairValue ThroughProfit or Loss

Measured at Fair

Value ThroughOtherComprehensive

Income

TotalWithin OneYea

OtherCurrentAssets

r

79,380,779.05

79,380,779.05

2) Book Value of Various Financial Liabilities as of the Balance Sheet Date

a. December 31, 2025

Financial Liability Item

Measured at

Fair Value

ThroughProfit or Loss

Other Financial

Liabilities

TotalShort-term Borrowings

1,136,260,975.85 1,136,260,975.85Derivative Financial Liabilities 3,815,280.00

3,815,280.00Accounts Payable

66,273,857.12 66,273,857.12Other Payables

62,493,915.38 62,493,915.38Other current liabilities 2,125,165.80 2,125,165.80Long-term Borrowings 576,500,000.00 576,500,000.00Non-Current Liabilities Due Within One Year

371,035,213.61 371,035,213.61

b. December 31, 2024

Financial liability items

Financialliabilitiesmeasured at

fair valuethrough profit

or loss

Other financial

liabilities

TotalShort-term Borrowings

1,311,609,177.78 1,311,609,177.78Derivative Financial Liabilities 30,979,464.00

30,979,464.00Accounts Payable

127,879,265.40 127,879,265.40Other Payables

58,529,914.31 58,529,914.31Bonds payable

299,250,000.00

Non-Current Liabilities Due Within One Year

532,152,983.32 532,152,983.32

（2）Credit Risk

As of December 31, 2025, the maximum credit risk exposure that could cause financialloss to the company mainly arises from the possibility that the counterparty may fail to fulfill

Page 117 of 140

its obligations, leading to losses in the company’s financial assets. Specifically, this includes:

The book value of financial assets recognized in the consolidated balance sheet; forfinancial instruments measured at fair value, the book value reflects its risk exposure, but notthe maximum risk exposure. The maximum risk exposure will change as the fair valuefluctuates in the future.To mitigate credit risk, the company has established relevant policies to control credit riskexposure, including evaluating the creditworthiness of customers based on factors such as theirfinancial condition, the possibility of obtaining third-party guarantees, credit history, andcurrent market conditions. The company sets appropriate credit periods and implements othermonitoring procedures to ensure necessary actions are taken to recover overdue receivables.Furthermore, the company reviews the recovery status of each receivable as of each balancesheet date to ensure adequate provisions for bad debts are made for uncollectible amounts.Therefore, the management believes the credit risk undertaken by the company has beensignificantly reduced.The Company’s working capital is deposited with banks that have high credit ratings;therefore, the credit risk associated with the Company’s working capital is relatively low.

（3）Liquidity Risk

When managing liquidity risk, the company maintains what the management considers tobe sufficient cash and cash equivalents, which are monitored to meet the company’s operationalneeds and reduce the impact of cash flow fluctuations. The management monitors the use ofbank borrowings and ensures compliance with loan agreements.

An analysis of the maturity of financial liabilities based on the undiscounted contract cashflows:

Item

December 31, 2025Within 1 year 1 to 5 Years Over 5 Years TotalShort-term borrowings 1,136,260,975.85

1,136,260,975.85Derivative financialliabilities

3,815,280.00

3,815,280.00Accounts payable 62,935,403.84 3,338,453.28

66,273,857.12Other payables 62,493,915.38

62,493,915.38Long-term borrowings

576,500,000.00

576,500,000.00Bonds payable

Non-current liabilitiesdue within one year

371,035,213.61

371,035,213.61

Page 118 of 140

（Continuing Table）Item

December 31, 2025Within 1 year 1 to 5 Years Over 5 Years TotalShort-term borrowings 1,311,609,177.78

1,311,609,177.78Derivative financialliabilities

30,979,464.00

30,979,464.00Accounts payable 124,440,132.93 3,439,132.47

127,879,265.40Other payables 58,529,914.31

58,529,914.31Long-term borrowings

Bonds payable

299,250,000.00

Non-current liabilitiesdue within one

ea

532,152,983.32

（4）Market RiskMarket risk refers to the risk that the fair value or future cash flows of financial instrumentswill fluctuate due to changes in market prices. Market risk mainly includes interest rate risk,exchange rate risk, and other price risks such as equity instrument investment price risk.

1） Interest Rate RiskThe company’s interest rate risk primarily arises from bank borrowings and other financialliabilities. Floating rate financial liabilities expose the company to cash flow interest rate risk,while fixed rate financial liabilities expose the company to fair value interest rate risk. Thecompany determines the relative proportions of fixed and floating rate contracts based on thecurrent market environment.

As of December 31, 2025，the company’s interest-bearing debt includes floating-ratecontracts in RMB amounting to ?180,000,000.00 and fixed-rate contracts in RMB amountingto ?1,900,460,975.85.

2） Exchange Rate Risk

The foreign exchange risk faced by the Company is mainly related to its operatingactivities (when receipts and payments are settled in foreign currencies other than theCompany’s functional currency) and its net investments in overseas subsidiaries. The Companyis primarily exposed to foreign exchange risk related to the U.S. dollar. Except for certainsubsidiaries of the Company that conduct purchases and sales in U.S. dollars, the Company’sother major operating activities are denominated and settled in Renminbi. As of December 31,2025, except for the assets or liabilities with U.S. dollar balances as shown in the table below,the Company’s assets and liabilities are all denominated in Renminbi. The foreign exchange

Page 119 of 140

risk arising from assets and liabilities denominated in these foreign currencies may have animpact on the Company’s operating results.

Item Ending Balance Beginning BalanceCash and Cash Equivalents 25,155,525.27 87,168,294.60Other Receivables

16,141,102.93The company uses sensitivity analysis techniques to assess the potential impact ofreasonable and possible changes in risk variables on the current period’s profit or loss orshareholders’ equity. Since risk variables rarely change in isolation and the correlation betweenvariables significantly affects the final impact of a change in a specific risk variable, thefollowing content is based on the assumption that changes in each variable are independent.Under the assumption that foreign currency assets and liabilities remain relatively stable,and other variables remain unchanged, the potential reasonable changes in exchange rates couldhave the following after-tax impact on profit or loss and equity for the current period:

Item

Ending ForeignCurrency Balance

Exchange Rate

Ending ConvertedRMB BalanceMonetary funds —— —— 25,155,525.27Including: U.S. dollars 3,578,921.76 7.0288 25,155,525.27(Continuing Table)

Item

Current Period

USD ExchangeRateIncrease/(Decrease)

Gross Profit/Net

ProfitIncrease/(Decrease)

Total Profit/Net

ProfitIncrease/(Decrease)RMB Depreciation vs USD 5% 1,257,776.26 1,257,776.26RMB Appreciation vs USD -5% -1,257,776.26 -1,257,776.26

2. Hedging

（1）Company’s Hedging Activities for Risk Management

Item

Relevant RiskManagementStrategies and

Goals

Qualitative and

QuantitativeInformation on

Hedged Risk

Hedged Projectand Economic

Relationshipwith Hedging

Instruments

Effectivenessof Expected

RiskManagement

Goal

Impact ofHedgingActivity on

RiskExposureOilseedHedging

Use of futures

contracts for

hedgingpurposes toavoid marketprice volatility,achieving stable

operations.

Hedged risk isprice volatility

risk, mainlyarising from basis

risk, substitute

risk, supply-demand risk, etc.

Hedged project

and related

hedginginstrumentschange in fair

value in

oppositedirection to the

Expected riskmanagementgoal is mostly

achieved.

Effectivelymitigatesriskexposure.

Page 120 of 140

Item

Relevant RiskManagementStrategies and

Goals

Qualitative and

QuantitativeInformation on

Hedged Risk

Hedged Projectand EconomicRelationshipwith Hedging

Instruments

Effectivenessof ExpectedRiskManagementGoal

Impact ofHedgingActivity onRiskExposurechange inmarket pricesor correlatedeconomicvariables.

（2）The company engages in qualifying hedging activities and applies hedgeaccounting

Item

Carrying valuerelated to the hedged

items and hedging

instruments

Cumulative fair value

hedge adjustmentsincluded in the carryingvalue of the recognized

hedged items

Source of hedgeeffectiveness and

ineffectiveness

The impact of hedge

accounting on thecompany’s financial

statementsTypes of hedging risksCommodityprice risk -Other currentassets

8,705,942.21 8,705,942.21

The correlationbetween the hedgeditems and hedging

instruments

-169,671,995.27Commodityprice risk -Other currentliabilities

2,125,165.80 2,125,165.80Hedge CategoryFair valuehedge –derivativefinancialliabilities

3,815,280.00

The correlationbetween the hedgeditems and hedginginstruments

-169,671,995.27

XI. Fair Value Disclosures

1. Fair Value Measurement of Assets and Liabilities at Period End

Page 121 of 140

Item

Ending Fair ValueLevel 1 Fair Value

Measurement

Level 2 Fair

ValueMeasurement

Level 3 Fair

ValueMeasurement

TotalI. Assets Measured at FairValue on a Continuing Basis

(I) Trading Financial Assets 8,705,942.21

8,705,942.21

1. Financial Assets Measured at

Fair Value with Changes inProfit and Loss

8,705,942.21

8,705,942.21

（1）Debt Instruments

（2）Equity Instruments

（3）Derivative Financial

Assets

（4）Other current assets 8,705,942.21 8,705,942.21

2. Financial Assets Designated

at Fair Value with Changes inProfit and Loss

（1）Debt Instruments

（2）Equity Instruments

(II) Other Debt Investments

(III) Other Equity Instruments

(IV) Investment Properties

Total Assets Measured at FairValue on a Continuing Basis

8,705,942.21

8,705,942.21(VI) Trading FinancialLiabilities

5,940,445.80

5,940,445.80

1. Financial liabilities measured

at fair value through profit orloss

5,940,445.80

5,940,445.80Including: Trading bonds issued

Derivative financial liabilities 3,815,280.00

3,815,280.00Other current liabilities 2,125,165.80 2,125,165.80Other

2. Financial liabilities

designated as measured at fairvalue through profit or loss

Total liabilities measured at fairvalue on a recurring basis

5,940,445.80

5,940,445.80

2. Determination Basis for Market Price of Level 1 Fair Value Measurement Items

on a Continuing and Non-Continuing Basis

Page 122 of 140

The Company's Level 1 fair value measurement is based on the public contract quotationsof the futures exchange.XII. Related Parties and Related Transactions

1. Parent Company Information

Parent Company Name

RegisteredLocation

Business Nature

Registered

Capital

ParentCompany'sShareholdingPercentagein theCompany（%）

ParentCompany's VotingRightsPercentage in theCompany（%）Beijing Grain Group Co.,Ltd.

Beijing, China

InvestmentManagement

RMB900,000,000.00

39.68 39.68

Description of the Company’s parent companyThe ultimate controlling party of the Company is Beijing State-owned Capital Operationand Management Co., Ltd.

2.Subsidiary Information

The information about the subsidiaries of the company is detailed in Note VIII, Item 1,"Equity in Subsidiaries."3.Joint Ventures and Associates Information

The information about the significant joint ventures or associates of the company isdetailed in Note VIII, Item 2, "Equity in Joint Ventures or Associates."

4. Other Related Parties

Other Related Party Name Relationship with the CompanyBeijing Capital Agribussiness & Food Group Finance Co., Ltd.

Controlled by the same ultimate

controlling partyShanghai Shouyu Commercial Management Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Ershang Meat Food Group Co., Ltd.

Controlled by the same ultimate

controlling partyHebei Luanping Huadu Foodstuff Co., Ltd.

Controlled by the same ultimate

controlling partyHebei Shounong Modern Agricultural Technology Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Capital Agribusiness Consumption Assistance &Innovation Center Co., Ltd.

Controlled by the same ultimate

controlling party

Page 123 of 140

Beijing Lvhe Cattle Farming Co., Ltd. Xingtai Branch

Controlled by the same ultimate

controlling partyBeijing Jingliang East Grain and Oil Trading Group Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Baijiayi Food Co., Ltd.

Controlled by the same ultimate

controlling partyHebei Anping Dahongmen Food Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Zhangxin Grain Reserve Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Lanfeng Vegetable Distribution Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Guchuan Food Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Capital Agribusiness Dot-To-Net E-commerce Co.,Ltd.

Controlled by the same ultimate

controlling partyBeijing Sanyuan Foods Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Haidian Xijiao Grain and Oil Supply Station Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Grain Group Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Wuhuan Shuntong Supply Chain Management Co.,Ltd.

Controlled by the same ultimate

controlling partyBeijing Grain Science Research Institute Co., Ltd.

Controlled by the same ultimate

controlling partyLiu Biju Peking Food Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Jingliang Electronic Commerce Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Hepingmen Market Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Jingliang Taiyu Real Estate Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Shoucheng Shanshui Real Estate Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Capital Agribusiness Development Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Guchuan Rice Industry Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Capital Agribusiness & Foods Emergency SupportCenter Co., Ltd.

Controlled by the same ultimate

controlling party

Page 124 of 140

Beijing Capital Agribusiness & Food Group Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Wangzhihe Food Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Capital Agribusiness Livestock Development Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Food Supply Department No. 34 Supply DepartmentCo., Ltd.

Controlled by the same ultimate

controlling partyBeijing Jingdujingu Grain Purchasing and Sales Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Capital Agribusiness Xiangshan Conference CenterCo., Ltd.

Controlled by the same ultimate

controlling partyBeijing Longqingxiadu Military Grain Supply Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Allied Faxi Food Co.,Ltd.

Controlled by the same ultimate

controlling partyBeijing North Jingtang Foreign Spirits Sales Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Dot-To-Net E-commerce Sales Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Ershang Dahongmen Wuroulian Food Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Ershang Jinghua Tea Industry Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Jingshen Seafood Sales Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Jingtang Dingsheng Trading Co., Ltd.

Controlled by the same ultimate

controlling partyLiu Biju Peking Huairou Food Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Farm Produce Central Wholesale Market Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Shenghua Sihe Asset Management Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Changfa Industrial Operation Management Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Haiyunxing Aquatic Product Company

Controlled by the same ultimate

controlling partyBeijing Nanjiao Heyi Farm Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Changyang Farm Co., Ltd.

Controlled by the same ultimate

controlling party

Page 125 of 140

Beijing Capital Agribusiness Commercial Chain Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Capital Agribusiness Xiangshan Commercial Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Sidaokou Aquatic Products Trading Market Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Taiyu Real Estate Management Co., Ltd.

Controlled by the same ultimate

controlling partyHuai’an Jingliang Lvgu Grain Co., Ltd.

Controlled by the same ultimate

controlling partyShanghai Sanyuan Dairy Co., Ltd.

Controlled by the same ultimate

controlling partyTongliao Dachang Grain Trading Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Jingliang Xingye Commercial Management Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Jingtang Shengshi Meilihua Trading Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Maisui Hotel Management Co., Ltd. Maike TianxiangHotel

Controlled by the same ultimate

controlling partyBeijing Dairy Cattle Center

Controlled by the same ultimate

controlling partyBeijing Nanjiao Agricultural Production and OperationManagement Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Sanjia Taifu Real Estate Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Sanyuan Petroleum Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Sanyuan Breeding Technology Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Nankou Farm Co., Ltd. Fruit Products Business Branch

Controlled by the same ultimate

controlling partyBeijing Shuangqiao Qiaolian Property Service Co., Ltd.

Controlled by the same ultimate

controlling partyHebei Sanyuan Food Co., Ltd.

Controlled by the same ultimate

controlling partyTianjin Capital Agribusiness Dongjiang Animal HusbandryCo., Ltd.

Controlled by the same ultimate

controlling partyChina Meat Research Center

Controlled by the same ultimate

controlling partyBeijing Ershang Muxiangyuan Halal Meat Food Co., Ltd.

Controlled by the same ultimate

controlling party

Page 126 of 140

Beijing Heiliu Animal Husbandry Technology Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Huadu Sunshine Food Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Huayu Food Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Jingliang Gurun Trade, Ltd.

Controlled by the same ultimate

controlling partyBeijing Sanyuan AGRICULTURE Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Capital Agribusiness Information Technology &Services Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Sugar Tobacco & Wine Group Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Wanfa Hengxing Trading Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Xinanjiao Frozen Food Co., Ltd.

Controlled by the same ultimate

controlling partyBeijing Yanqi Yueshengzhai Islamic Food Co.,Ltd.

Controlled by the same ultimate

controlling partyShandong Fukuan Bioengineering Co., Ltd.

Controlled by the same ultimate

controlling party

5. Related Party Transactions

（1） Purchase and Sale of Goods, Provision and Receipt of Services

Purchase and Sale of Goods, Provision and Receipt of Services

Related

Party

RelatedTransaction

Content

CurrentPeriodAmount

Approvedtransactionlimit (RMB

10,000)

Whether thetransaction limit

was exceeded(if applicable)

Amountincurred inthe previous

erio

BeijingGuchuanFood Co.,Ltd.

Purchase ofgoods

12,180,238.74 1,800.00 No 14,450,217.76ShanghaiShounongInvestmentHoldingCo., Ltd.

Purchase of

goods

No 55,530,880.00Otherrelatedunits

Purchase ofgoods

4,064,287.94 1,200.00 No 4,274,096.76Otherrelatedunits

Receipt ofservices

1,700.00 No 116,255.16

Page 127 of 140

Sale of Goods/Provision of Services：

Related Party

Related TransactionContent

Current Period

Amount

Previous PeriodAmountShanghai Shounong InvestmentHolding Co., Ltd.

Sale of goods 8,488,245.03 311,641,692.68Hebei Shounong Modern AgriculturalTechnology Co., Ltd.

Sale of goods 11,757,571.92 17,871,902.07Hebei Luanping Huadu Food Co., Ltd. Sale of goods 101,778,751.91 88,182,730.21Beijing Sanyuan Seed IndustryTechnology Co., Ltd. Feed Branch

Sale of goods 39,541,959.37 58,393,255.17Beijing Wang Zhihé Food Co., Ltd. Sale of goods

13,829,319.37Beijing Shounong ConsumptionAssistance and Double InnovationCenter Co., Ltd.

Sale of goods 11,455,400.89 8,722,272.45Beijing Shounong Animal HusbandryDevelopment Co., Ltd.

Sale of goods 6,505,217.13 7,800,749.94Beijing Jingliang Dongfang Grain andOil Trading Co., Ltd.

Sale of goods 1,645,417.57 2,936,536.67Beijing Food Supply Bureau No. 34Supply Department Co., Ltd.

Sale of goods 1,844,670.47 2,546,073.08Beijing Wuhuan Shuntong SupplyChain Management Co., Ltd.

Sale of goods 4,388,303.63 2,141,115.90Beijing Zhangxin Grain Storage Co.,Ltd.

Sale of goods 1,266,068.79 1,953,412.40Beijing Baijia Yi Food Co., Ltd. Sale of goods 2,345,633.02 1,907,018.32Beijing Jingdu Jingu Grain Purchaseand Sales Co., Ltd.

Sale of goods

1,736,146.78Beijing Guchuan Rice Industry Co.,Ltd.

Sale of goods 4,046,599.52 1,377,817.45Beijing Haidian Xijiao Grain and OilSupply Station Co., Ltd.

Sale of goods 1,853,082.56 1,324,036.68Hebei Anping Dahongmen Food Co.,Ltd.

Sale of goods 1,162,843.97 753,718.30Beijing Shounong Development Co.,Ltd.

Sale of goods 17,996.18 585,779.12Beijing Lanfeng Vegetable DistributionCo., Ltd.

Sale of goods 46,215.59 505,685.23Beijing Shounong XiangshanConference Center Co., Ltd.

Sale of goods 22,655.04 342,868.31Beijing Longqing Xiadu Military FoodSupply Co., Ltd.

Sale of goods 284,036.71 277,431.20

Page 128 of 140

Beijing Guchuan Food Co., Ltd. Sale of goods 343,188.01 251,753.39Beijing Ailafa Food Co., Ltd. Sale of goods 52,869.73 233,097.82Beijing Ershang Meat Food Group Co.,Ltd.

Sale of goods

1,640,052.22

Beijing Liubiju Huairou Food Co., Ltd. Sale of goods

5,399,458.71

Beijing Agricultural Products CentralWholesale Market Co., Ltd.

Sale of goods

1,070,229.37

Beijing Shounong XiangshanCommercial Co., Ltd.

Sale of goods

450,000.01

Beijing Capital Agribusiness FoodGroup Co., Ltd.

Sale of goods

275,594.42

Beijing Sanjia Taifu Real Estate Co.,Ltd.

Sale of goods

125,113.76

Other related units Sale of goods 861,063.73 1,202,072.47Shanghai Shounong InvestmentHolding Co., Ltd.

Provision ofservices

7,819,405.73 3,837,338.61Beijing Capital Agribusiness FoodGroup Co., Ltd.

Provision ofservices

1,590,618.04 1,646,403.21Other related parties

Provision ofservices

183,106.58 49,397.36

Explanation of the purchase and sale of goods, provision, and receipt of services: Thetransaction prices are based on the prices charged for the same or similar business activitiesbetween unrelated parties.

（2） Related Lease Transactions

As Lessor：

Lessee Name Lease Asset Type

Lease IncomeRecognized in Current

Period

Lease IncomeRecognized inPrevious PeriodBeijing Jingliang E-CommerceCo., Ltd.

Vehicles 15,020.18 22,530.27Beijing Grain Group Co., Ltd. Properties 53,333,333.34

As Lessee：

Page 129 of 140

Lessor Name

Lease AssetType

Simplified Short-Term Lease and Low-Value Asset Rent (CNY)

Lease Payments Not Included inLease Liability Measurement

(CNY)Current PeriodAmount

Previous PeriodAmount

Current PeriodAmount

Previous PeriodAmountBeijing GrainGroup Co., Ltd.

Properties 2,436,206.95 196,300.00

Beijing ShounongFood EmergencyGuarantee CenterCo., Ltd.

Properties 2,528,669.72 2,528,669.72

Beijing GrainScience ResearchInstitute Co., Ltd.

Properties

（Continuing Table）

Lessor Name

Rent Paid Lease Liability Interest Expense

Increase in Right-of-

Use AssetsCurrent PeriodAmount

Previous PeriodAmount

Current Period

Amount

Previous

PeriodAmount

CurrentPeriodAmount

Previous

PeriodAmountBeijing Grain GroupCo., Ltd.

5,565,689.98

Beijing Shounong FoodEmergency GuaranteeCenter Co., Ltd.

2,756,250.00

Beijing MunicipalGrain Science ResearchInstitute Co., Ltd.

14,040,000.00 14,040,000.00 2,476,170.62 1,150,310.75

（3） Key management personnel compensation

Item Current Period Amount Previous Period AmountKey management personnel compensation RMB 4,399,800 RMB 8,495,700

（4） Other Related Party Transactions

Related Party

Related Transaction

Content

Current Period

Amount

Previous Period

AmountBeijing Shounong Food Group FinancialCo., Ltd.

Interest Income 7,747,070.11 7,046,721.43Beijing Shounong Food Group FinancialCo., Ltd.

Interest Expense 8,218,405.55 2,610,416.67

Page 130 of 140

Beijing Guchuan Food Co., Ltd.

Trademark UsageFee

931,720.94 1,946,502.22Beijing Guchuan Rice Industry Co., Ltd.

Trademark UsageFee

143,828.28 200,353.23Beijing Jingliang Dongfang Grain and OilTrading Co., Ltd.

Trademark UsageFee

385.31 1,439.81

Beijing Grain Group Co., Ltd.

Trademark licensefee

656,320.06

Beijing Grain Group Co., Ltd.

Demolitioncompensation

10,955,322.00Beijing Grain Group Co., Ltd. Sale of trademarks 25,235,377.36Beijing Municipal Grain ScienceResearch Institute Co., Ltd.

Other 220,519.81

6. Receivables and Payables from Related Parties and Unsettled Items

（1） Receivables

Project Name Related Party

Period-End Balance Beginning periodBook Balance

Provision for Bad

Debts

Book Balance

Provisionfor BadDebtsMonetaryfunds

Beijing ShounongFood GroupFinancial Co., Ltd.

1,303,024,670.57

840,710,693.25

Prepayments

ShanghaiShounongInvestmentHolding Co., Ltd.

18,949,338.60

Prepayments

Beijing ErshangMeat Food GroupCo., Ltd.

27,540.00

Accountsreceivable

Huadu Food Co.,Ltd., LuanpingCounty, HebeiProvince

22,348,359.23

28,001,392.07

Accountsreceivable

Beijing SanyuanSeed TechnologyCo., Ltd.

1,887,834.11

6,108,044.61

Accountsreceivable

Hebei ShounongModernAgriculturalTechnology Co.,Ltd.

1,945,602.36

Page 131 of 140

Accountsreceivable

Beijing ShounongConsumerAssistanceInnovation andEntrepreneurshipCenter Co., Ltd.

371,250.00

Accountsreceivable

Beijing ShounongLivestockDevelopment Co.,Ltd.

426,725.84

332,181.38

Accountsreceivable

Beijing JingliangDongfang Grain &Oil Trading Co.,Ltd.

125,200.00

319,534.75

Accountsreceivable

Beijing BaijiayiFood Co., Ltd.

102,580.00

160,250.00

Accountsreceivable

Hebei AnpingDahongmen FoodCo., Ltd.

565,500.00

156,000.00

Accountsreceivable

Beijing ZhangxinGrain ReserveCo., Ltd.

367,175.00

119,717.50

Accountsreceivable

Beijing LanfengVegetableDistribution Co.,Ltd.

26,000.00

Accountsreceivable

Beijing GuchuanFood Co., Ltd.

13,202.00

24,012.00

Accountsreceivable

Beijing ErshangMeat Food GroupCo., Ltd.

13,830.01

17,075.00

Accountsreceivable

Beijing ShounongDiandao E-commerce Co.,Ltd.

10,468.00

Accountsreceivable

Beijing SanyuanFoods Co., Ltd.

19,235.00

Accountsreceivable

Beijing HaidianXijiao Grain andOil Supply StationCo., Ltd.

316,800.00

Accountsreceivable

Beijing GrainGroup Co., Ltd.

12,847,737.37

Page 132 of 140

Accountsreceivable

Beijing WuhuanShuntong SupplyChainManagement Co.,Ltd.

67,680.00

OtherReceivables

Beijing ShounongConsumerAssistanceInnovation andEntrepreneurshipCenter Co., Ltd.

20,000.00

（2） Payables

Project Name Related Party Ending Balance Beginning BalanceAccountsPayable

Shanghai Shounong Investment Holding Co.,Ltd.

845,410.83AccountsPayable

Beijing Guchuan Food Co., Ltd. 746,826.11 275,504.58AccountsPayable

Beijing Municipal Grain Science Research

Institute Co., Ltd.

190,000.00

AccountsPayable

Beijing Liubiju Food Co., Ltd. 193.81

OtherPayables

Beijing Grain Group Co., Ltd. 543,047.81 3,652,500.00OtherPayables

Beijing Jingliang E-commerce Co., Ltd.

16,972.80OtherPayables

Beijing Wuhuan Shuntong Supply ChainManagement Co., Ltd.

7,841.96

OtherPayables

Beijing Jingliang Dongfang Grain & OilTrading Co., Ltd.

7,684.48

ContractLiabilities

Shanghai Shounong Investment Holding Co.,Ltd.

13,947,007.52ContractLiabilities

Beijing Hepingmen Market Co., Ltd. 27,522.94

ContractLiabilities

Beijing Jingliang Taiyu Real Estate Co., Ltd. 7,100.92

ContractLiabilities

Beijing Grain Group Co., Ltd. 327,200.00

ContractLiabilities

Beijing Shoucheng Shanshui Real Estate Co.,Ltd.

6,192.66

ContractLiabilities

Beijing Shounong Development Co., Ltd. 22,192.66

Page 133 of 140

XIII. Share-based Payments

The company does not have any share-based payments that need to be disclosed.

XIV. Commitments and Contingencies

(1) As of the end of the reporting period, the approved guarantee limit of the Company

and its subsidiaries amounted to 55.95 billion RMB, and the actual amount of guaranteesutilized by the Company and its subsidiaries was 9.78 billion RMB, representing 34.15% of theCompany’s most recently audited net assets attributable to the parent company. All suchguarantees were provided between the Company and its subsidiaries. The Company and itssubsidiaries have not provided any guarantees to entities outside the consolidated financialstatements.

XV. Events after the balance sheet dateThere are no events after the balance sheet date that require disclosure for the reportingperiod.

XVI. Other significant matters

1. Correction of prior period accounting errors

（1） Retrospective restatement method

Content of accounting error

correction

Processing procedure

Name of financialstatement items in eachaffected comparative

erio

Cumulative impactCorrection of revenue thatdid not meet the revenue

recognition criteria

Correction of prior period

accounting error Capital reserve 989,931.26Correction of revenue thatdid not meet the revenue

reco

nition criteria

Correction of prior period

accounting error Retained earnings -989,931.26

2. Pension plan

Pension Plan Overview: The companies under the group, including Beijing Jingliang FoodCo., Ltd., Jingliang (Tianjin) Grain and Oil Industry Co., Ltd., Beijing Guchuan Oil Co., Ltd.,Beijing Aisen Greenbao Oil Co., Ltd., Beijing Jingliang Oils Co., Ltd., Beijing Guchuan Breadand Food Co., Ltd., and Beijing Tianweikang Oil Adjustment Center Co., Ltd., participate inthe pension plan of Beijing Capital Agribusiness Food Group Co., Ltd. Each company hasestablished its own implementation rules for the pension plan. The pension plan is named "

Page 134 of 140

Beijing Capital Agribusiness Food Group Co., Ltd Corporate Pension Plan." The trustee is PingAn Pension Insurance Co., Ltd., the account manager is Bank of Communications, and thecustodian is CITIC Bank Co., Ltd.

3. Segment Information

（1）Basis for Determining Reportable Segments and Accounting Policies

Based on the company's internal organizational structure, management requirements, andinternal reporting system, the company's business operations are divided into segments such asfood processing, oilseeds and oil-related operations. The company’s management regularlyevaluates the operating results of these segments to allocate resources and assess theirperformance. The segment reporting information is disclosed based on the accounting policiesand measurement standards used by the management to report to the board, and thesemeasurement bases are consistent with those used in the preparation of the financial statements.（2）Financial Information of Reportable SegmentsItem Food Processing Oilseeds and Oils

Inter-SegmentEliminations

TotalOperatingRevenue

680,705,627.17 7,154,995,505.45 500,823.85 7,835,200,308.77OperatingCos

550,661,896.73 6,906,789,779.01 569,430.05 7,456,882,245.69TotalAssets

1,083,751,681.79 5,407,465,791.46 372,935,251.80 6,118,282,221.45TotalLiabilities

224,389,868.72 3,055,105,381.97 372,935,251.80 2,906,559,998.89

XVII. Notes to the Financial Statements of the Parent

Company

1. Other Receivables

Item Period-End Balance Beginning periodInterest ReceivableDividend Receivable 18,000,000.00Other Receivables 930,000,000.00 930,000,000.00

Page 135 of 140

Total 930,000,000.00 948,000,000.00

（1）Dividends receivable

1) Dividends receivable

Item (or investee) Period-End Balance Beginning periodBeijing Jingliang Food Co., Ltd. 18,000,000.00Total 18,000,000.00

2) Classified disclosure by provision method for bad debts

Category

Period-End BalanceBook Balance Provision for Bad Debts

Book ValueAmount

Proportion(%)

Amount

Proportion(%)Provision for BadDebts recognized onan individual basis

Provision for BadDebts recognized on aportfolio basis

Total（Continuing Table）

Category

Beginning periodBook Balance Provision for Bad Debts

Book ValueAmount

Proportion (%)

Amount Proportion (%)

Page 136 of 140

Provision for BadDebts recognized onan individual basis

Provision for BadDebts recognized on aportfolio basis

18,000,000.00 18,000,000.00Total 18,000,000.00 18,000,000.00

（2）Other Receivables

1) Receivables by Age

Age Ending Balance Beginning BalanceWithin 1 Year 930,000,000.001 to 2 Years 930,000,000.00Total 930,000,000.00 930,000,000.00

2) Receivables by Nature

Nature Ending Balance Beginning BalanceInter-company Receivables 930,000,000.00 930,000,000.00Total 930,000,000.00 930,000,000.00

3) Top five other receivables by debtor aggregated at Period-End Balance

Entity name

Period-EndBalance

Proportion of totalother receivables at

Period-EndBalance (%)

Nature ofreceivable

Aging

Provision for BadDebtsPeriod-End

BalanceBeijingJingliang

930,000,000.00 100.00 Loan 1–2 years

Page 137 of 140

Food Co.,Ltd.Total 930,000,000.00

2. Long-term equity investments

Item

Period-End Balance Beginning periodBook Balance Impair

mentProvision

Book Value Book Balance Impair

mentProvision

Book Value

Investment insubsidiaries

2,442,399,283.19 2,442,399,283.19 2,340,799,283.19 2,340,799,283.19

Total 2,442,399,283.19 2,442,399,283.19 2,340,799,283.19 2,340,799,283.19

（1）Investment in subsidiaries

Investee Beginning period

Increase duringthe period

Decrease

during

theperiod

Period-End

Balance

Impairment

provisionrecognizedduring the

period

ImpairmentProvisionPeriod-

End BalanceBeijingJingliangFood Co.,Ltd.

2,051,781,964.05 2,051,781,964.05

ZhejiangLittle PrinceFood Co.,

249,017,319.14 249,017,319.14

Page 138 of 140

Ltd.Jingliang(Caofeidian)AgriculturalDevelopmentCo., Ltd.

25,500,000.00 25,500,000.00

Jingliang(Beijing)Baking FoodCo., Ltd.

8,000,000.00 82,100,000.00 90,100,000.00

Jingliang(Yangpu)Grain andOil IndustryCo., Ltd.

6,500,000.00 19,500,000.00 26,000,000.00

Total 2,340,799,283.19 101,600,000.00 2,442,399,283.19

3. Revenue and cost of revenue

（1）Revenue and cost of revenue

Item

Current Period Amount Previous Period AmountRevenue Cost Revenue CostOtherbusiness

2,553,338.81 338,261.64 2,448,223.41 340,195.56Total 2,553,338.81 338,261.64 2,448,223.41 340,195.56

4. Investment income

Item

Current PeriodAmount

Previous Period

AmountInvestment income from long-term equity investmentsaccounted for using the cost method

86,434,733.13 35,870,982.04

Page 139 of 140

Item

Current Period

Amount

Previous Period

AmountInvestment income arising from disposal of long-termequity investments

27,829,877.46Total 86,434,733.13 63,700,859.50

XVIII. Supplementary Information

1. Statement of non-recurring profit or loss for the current period

Item

Amount DescriptionNon-current asset disposal gains and losses, including the reversalof asset impairment provisions

14,056,035.10Government subsidies recognized in the current period but notclosely related to normal business operations, and those that havea continuous impact on the compan

's profit and loss

3,913,039.95Fair value changes of financial assets and liabilities held by non-financial enterprises, as well as gains and losses from the disposalof financial assets and liabilities, excluding effective hedgingactivities related to the compan

yy

's normal business operations

1,216,408.91Occupation fees for funds collected from non-financial enterprisesProfit or loss on entrusting others to invest or manage assetsProfit or loss from external entrusted loansLoss of assets due to force majeure, such as natural disastersReversal of impairment charges for receivables that are testedseparatel

yy

for impairmen

The investment cost of the subsidiary, associate and joint ventureis less than the income generated by the fair value of the investee'sidentifiable net assets when the investment is obtaine

Net profit or loss for the period from the beginning of the period tothe date of consolidation of subsidiaries arising from a businesscombination under the same control

Gains or losses on the exchange of non-monetary assetsDebt restructuring gains and lossesOne-time expenses incurred by the enterprise due to the cessationof relevant business activities, such as expenses for the placementof emplo

dy

ees, etc

One-time impact on profit or loss for the current period due toadjustments to laws and regulations such as taxation andaccountin

yg

Share-based payment expenses recognized at one time due tocancellation or modification of the equit

gy

incentive plan

For cash-settled share-based payments, gains or losses arising fromchanges in the fair value of employee remuneration payable afterthe vestin

yg

date

Gains and losses arising from changes in the fair value ofinvestment real estate that are subsequently measured using the fairvalue model

Proceeds from transactions where the price of the transaction isclearl

gy

unfai

Page 140 of 140

Item

Amount DescriptionProfit or loss arising from contingencies unrelated to the normaloperation of the compan

Custody fee income obtained from entrusted operationsOther non-operating income and expenses other than those listedabove

-5,364,192.71Other profit or loss items that meet the definition of non-recurring

yp

rofit or loss

Less: Income tax impact 2,092,351.08

p

Impact of Minority Interest (After-Tax) -1,331,864.39

Total 13,060,804.56

2. Return on Equity and Earnings per Share

Report Period Profit

WeightedAverage Returnon Equity（%）

Earnings Per ShareBasic EPS Diluted EPSNet profit attributable to ordinary shareholdersof the compan

y

-8.86 -0.37 -0.37Deducting non-recurring gains and losses, netprofit attributable to ordinary shareholders ofthe compan

yy

-9.29 -0.38 -0.38

Hainan Jingliang Holdings Co., Ltd.

March 26, 2026