New Hope Liuhe Co., Ltd.

2025 Annual Report

2026-34

新希望六和NEW HOPE LIUHE

[April 29, 2026]

2025 Annual Report

Section 1 Important Note, Table of Contents and Definitions

The Board of Directors, directors, and senior management of the Company warrant that the contents hereof are true, accurate and complete, and free of any false recordings, misleading statements or significant omissions, and that they will be jointly and severally liable for the legal consequences.

As declared by Liu Chang (Chairman), Shi Han (Chief Financial Officer) and Su Xiaodan (Head of Accounting Unit & Accounting Supervisor): the financial report herein is true, accurate and complete.

All directors of the Company attended the board meeting deliberating this report.

I. Animal disease and natural disaster risks

Animal disease is the main risk faced in the development of livestock industry. There are two kinds of risks arising out of the occurrence of epidemic disease. First, the occurrence of epidemic disease is likely to result in death of livestock, directly resulting in reduced yield, increased costs and lower prices. Second, the occurrence and prevalence of animal disease on a large scale easily influence the consumer psychology, leading to a contraction in market demand, and also affecting the feed production and operation. For example, the outbreak of the major swine disease in China in 2018 caused a huge shock to the whole industry. The major swine disease experienced a weakened mutation at the end of 2020 and beginning of 2021, making it more spread channels, longer incubation time, and more difficult to detect and eliminate. In recent years, major swine diseases have gradually become normal. Especially during the winter and early spring when the temperature is low, they have caused particularly severe impacts in the northern regions of China. As the density of livestock farming in the South increases, the risk of swine diseases also rises.

In terms of the natural disaster risk, the feed and slaughter are closely related to planting and livestock farming industry. Therefore, the natural disasters such as temperature anomalies, drought, flood, earthquake, hail, and snow disaster will all adversely affect the industry operation and development. Natural disasters occurring in and around the Company's production facilities may result in substantial damages to production infrastructure or equipment. Furthermore, natural disasters and extreme weather events can also drive up prices for certain feed ingredients and meat. For instance, in the summer of 2023 and the autumn of 2025, central China experienced a wide range of persistent rainy weather, causing a large range of crop disasters, which also had an impact on the price of feed raw materials and affected the quality of raw materials. The extensive heavy rain caused by a typhoon in southern China also brought adverse effect on disease prevention and control of pig farming.

Risk countermeasures: facing animal disease, the farms constructed by the Company that are normalized and standardized ones staffed with professional breeding technologists and equipped with strict anti-epidemic measures effectively prevent and control the occurrence of common diseases. The Company has also summarized a series of approaches and measures responding to major animal diseases through years of experience accumulation to eliminate the impact of various animal diseases The Company has been guiding technicians to better serve self-owned farms and external farmers by establishing animal healthcare laboratories in various areas, creating nationwide animal healthcare system, and conducting the monitoring and warning of animal diseases in real time. In particular, in response to the major swine disease that broke out in 2018, the Company formulated comprehensive prevention and control measures, covering multiple aspects including its own pig farms, collaborative finishing farms, swine feed production plants, and internal veterinary laboratories. The prevention and control measures start from the source of animal nutrition and ensure a comprehensive prevention and control strategy. As a result, the Company's biosafety prevention system and pig production indicators have reached the industry-leading level. In response to the new round of attenuated swine disease that occurred at the end of 2020 and the beginning of 2021, the Company summarized its experience and upgraded prevention and control and eradication methods, including dual antibody and dual screening in the whole group serum, application of thermal imaging devices, and safe storage and disinfection of materials, and continuously optimized the prevention and control process to ensure quicker resumption of production and reduce unnecessary prevention and control investment. From the end of 2023 to the beginning of 2024, the Company focused on upgrading and renovating the epidemic prevention facilities and equipment of some long-term affected farms, significantly enhancing their ability to prevent the impact of diseases. Since the winter of 2024, good epidemic prevention results have been achieved, helping to continuously reduce the cost of pig farming.

In response to natural disasters, the Company’s extensive domestic and international business presence ensure that specific regions experiencing natural disasters do not have a significant impact on the overall operations of the Company. Especially concerning the frequent rainstorm and flooding in southern China, the Company has accumulated a large wealth of experience in recent years. It has established mature emergency response plans and maintains sufficient flood prevention supplies in stock year-round, which enable the Company to flexibly guide farmers through production plan adjustments when the flood season begins, in preparation for disaster relief together. In addition, the Company can also take the advantage of its nationwide presence to allocate funds, feed ingredients, equipment, and staff timely and effectively to resume production as soon as possible and reduce the losses caused by natural disasters.

II. Risk of price fluctuations of feed ingredients

The cost of main feed ingredients for feed production accounts for more than 90% of total cost of feed production. In the past, the feed business accounted for a significant proportion of the Company's operating income, but as the feed industry generally adopts the cost-plus pricing method, the fluctuations in prices of feed ingredients can be partly transmitted to the downstream breeding operations, to relieve the pressure from the rising prices of feed ingredients. However, as the pig farming business accounts for a relatively large proportion of the Company's revenue, the impact of rising feed ingredient prices on the Company's overall operating costs has increased.

Since 2020, due to factors such as the macroeconomic situation at home and abroad, international trade relations and crop yield in main grain-producing areas of various countries, the prices of main feed ingredients such as corn and soybean meal continuously rose. Since 2023, the prices of agricultural products have started to fluctuate and decline. In 2024, they experienced a rapid drop. In the beginning of 2025 and the beginning of 2026, there were two rebounds respectively due to international trade disputes and geopolitical conflicts. However, overall, they remained at historically low levels (as shown in the figure below).

III. Risk of price fluctuations of livestock and poultry

As feeds produced by the Company are sold to the downstream livestock and poultry breeding industry, the price fluctuation of livestock and poultry affects the profit of the breeding segment, and gradually spreads to the upstream, affecting the sales volume and profit margin of the feed segment. With the rapid development of the pig farming business in recent years, it contributes more to the overall revenue and profits of the Company, and the hog prices will affect the revenue and profit level of the Company even more directly and significantly.

The excess capacity reduction in 2023 pushed the price upward after entering 2024, and reached a peak of around 20 yuan/kg in August. However, the market improvement and the general profitability of the industry curbed further capacity reduction, and supply also recovered accordingly. With the recovery of the production capacity of breeding sows and the rapid improvement of production efficiency, domestic hog prices began to decline continuously after September. The average price of hogs for the entire year of 2025 also reached the lowest level in recent years at 13.77 yuan/kg. In the first quarter of 2026, due to the decline in consumption after the Spring Festival, domestic hog prices further dropped. By late March, they fell to 9.5 yuan/kg, the lowest point since 2018 (as shown in the figure below).

Risk countermeasures: the process of livestock and poultry prices going down is also the process of survival of the fittest and withdrawal of some participants in the industry. As some participants withdraw, the total supply declines and the prices rise again, survived businesses are likely to gain a greater market share and a higher return on investment than before. In recent years, the Company has fully entered the stage of robust operation in pig business, and is gradually improving its business operation efficiency, reducing farming costs and restoring its original competitiveness by enhancing its internal management capabilities in many ways. On the other hand, unlike most agricultural and livestock companies, the Company has slaughtering and food processing business in the downstream and feed business in the upstream of breeding, precisely offsetting the impact of the breeding process. The declining prices of livestock and poultry mean that the cost of raw meat in the slaughtering and processing businesses falls too with increased profit margin;

the declining prices of livestock and poultry also mean the farming volume of livestock and poultry is at high levels, which also help increase the profitability of feed business. Such an industry chain presence can moderately mitigate the effects of declining prices of livestock and poultry on the Company.

IV. Impact of environmental protection policies

In recent years, the government and society have increasingly attached importance to environmental protection, and relevant laws and regulations have been continuously introduced. In 2014, China began to implement the Regulations on Pollution Prevention and Control of Large-scale Livestock and Poultry Farming. In 2015, the new Environmental Protection Law came into effect. In 2020, in the context of the sharp shortage of domestic pig supply caused by major swine diseases, local governments gradually relaxed the environmental protection requirements for farm construction to promote the resumption of pig production and ensure supply. However, since 2021, as the pig production capacity has gradually recovered to the normal range, the environmental protection policies related to breeding has returned to a more stringent situation. These environmental protection policies will force some livestock and poultry farms that fail to meet environmental standards to withdraw from the market, resulting in a reduction in the scale of livestock breeding. This will have certain impacts on the Company’s feed business growth and its acquisition of pigs for slaughter, and will also increase the cost for the Company's construction and operation of the pig farming business. In the long run, however, the withdrawal of backward production capacity that does not meet the environmental standards will allow the qualified producers that remain in the industry to acquire higher profitability, which is still of a positive significance to the entire industry.

Risk countermeasures: from the perspective of the pig farming business, the Company adheres to the path of ecological priority and green development, vigorously promoting integrated agriculture combining breeding and farming. From the development and construction stage to the production and operation stage, the Company attaches great importance to the implementation of corresponding environmental protection measures. By utilizing advanced technologies, it achieves harmless treatment and resource utilization of manure and sewage, achieving a win-win situation of economic benefits and environmental benefits. From the perspective of the feed business, on the one hand, the Company fully controls the existing scale. By transforming the feed marketing model, it fully leverages the advantages of industrialization integration and comprehensive services, strengthens cooperation with large and medium-sized farms and farmers that meet environmental protection standards, prioritizes ecology, environmental protection, efficiency and safety in project design, helps farmers renovate and build sheds that meet higher environmental protection standards, improves breeding efficiency, and actively promotes the healthy development of the domestic livestock and poultry breeding industry; on the other hand, the Company actively develops new scale. By leveraging its balanced national layout of feed business, it cultivates new livestock and poultry breeding bases in suitable environmental areas through various forms, ensuring the stability of its breeding resources.

V. Risk of exchange rate fluctuations

At present, more and more raw materials for feed production rely on global procurement, and the purchase of feed ingredients such as soybean meal, corn, whey meal, fish meal, DDGS and other foreign supplies is increasingly affected by the exchange rate. As the Company expands its presence abroad, in foreign investment and overseas operations, the cross-border capital transactions and settlement quotas involved are also growing, thus making the Company more vulnerable to exchange rate fluctuations. In recent years, due to factors such as geopolitics and adjustments in foreign exchange policies, the currencies of some host countries where the Company conducts overseas business saw extraordinary fluctuations. In 2025, the US dollar index continued to decline, recording the worst annual performance in recent years, which posed certain challenges to the Company's foreign exchange management and operations.

Risk countermeasures: to cope with the ever-expanding needs of overseas feed ingredient procurement and investment and operation, the Company has built an overseas commercial and trading center and investment and financing center based on the Singapore branch, and actively carried out international centralized feed ingredient procurement, foreign direct financing, supply chain finance, foreign exchange risk management, capital management and feed ingredient procurement risk management, so as to reduce the impact of exchange rate fluctuations on its cash flow in overseas operations. In the context of the increasing uncertainty in the macro environment and sharp exchange rate fluctuations in recent years, the Company has reinforced efforts to improve the ability of exchange rate forecasting and fund management, and guaranteed the value of funds through hedging and other means and tools. The Company has also further strengthened its close contact and communication with foreign financial institutions, Chinese government agencies stationed abroad and the host government, to dynamically analyze the trend of the host country's local currency exchange rate, make financial arrangements, and alleviate the adverse impact of exchange rate fluctuations.

The Company does not plan to distribute cash dividends or allot bonus shares or increase its share capital with provident fund.

TABLE OF CONTENTS

Section 1 Important Note, Table of Contents and Definitions....2

Section 2 Company Profile and Key Financial Indicators....17

Section 3 Management Discussion and Analysis....22

Section 4 Environmental, Social and Corporate Governance....69

Section 5 Important Matters....99

Section 6 Changes in Shares and Information of Shareholders....165

Section 7 Bonds....176

Section 8 Financial Report....185

List of Reference Documents

(I) Financial statements bearing the signatures and seals of the chairman, the chief accountant, and the person in charge of accounting organization & accountant in charge

(II) Original auditor’s report bearing the seal of the accounting firm and signatures and seals of CPAs.

(III) Originals of all corporate documents and manuscripts of announcements publicly disclosed on China Securities Journal, Securities Times, Shanghai Securities News, Securities Daily and www.cninfo.com.cn during the reporting period.

Definitions

Section 2 Company Profile and Key Financial Indicators

I. Company Information

II. Contact information

III. Information disclosure and filing place

IV. Registration changes

V. Other related information

Accounting firm engaged by the Company

Sponsor institution engaged by the Company that performed ongoing supervision responsibilities during the reporting period

Financial advisor engaged by the Company that performed ongoing supervision responsibilities during the reporting period □Applicable ^Not applicable

VI. Key accounting data and financial indicators

Whether the Company needs to retroactively adjust or restate the accounting data of previous years

□Yes ^No

The lower of net profit of the Company before and after deducting non-recurring gains and losses in the most recent three accounting years was negative, and the most recent year’s audit report shows that the Company’s ability as a going concern is uncertain

□Yes ^No

During the reporting period, the lowest value among the audited total profit, net profit, and net profit after deducting non-recurring gains and losses was negative.

^Yes □No

VII. Accounting data difference under Chinese and foreign accounting standards

1. Difference in net profits and net assets in financial reports disclosed under both international accounting standards and Chinese accounting standards

□Applicable ^Not applicable

The Company had no difference in net profits and net assets in financial reports disclosed under either international accounting standards and Chinese accounting standards during the reporting period.

2. Difference in net profits and net assets in financial reports disclosed under both overseas accounting standards and Chinese accounting standards

□Applicable ^Not applicable

The Company had no difference in net profits and net assets in financial reports disclosed under either overseas accounting standards and Chinese accounting standards during the reporting period.

VIII. Quarterly key financial data

Unit: yuan

Whether the aforesaid financial indicators or their sums are materially different from related financial indicators in quarterly reports and semiannual reports disclosed by the Company

□Yes ^No

IX. Non-recurring items and their amounts

^Applicable □Not applicable

Unit: yuan

Details of other gain and loss items that meet the definition of non-recurring gains and losses:

□Applicable ^Not applicable

The Company had no other gain and loss items that meet the definition of non-recurring gains and losses.

Notes on the circumstances under which the non-recurring items listed in the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the Public No. 1 - Non-recurring Gains and Losses are defined as recurring gains and losses.

□Applicable ^Not applicable

The Company has no non-recurring items listed in the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the Public No. 1 - Non-recurring Gains and Losses defined as recurring gains or losses.

Section 3 Management Discussion and Analysis

I. Main businesses of the Company during the reporting period

The Company is required to comply with the disclosure requirements set forth in the Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure regarding listed companies engaged in livestock poultry, and aquaculture husbandry businesses.

In 2025, the Company focused on two major businesses: feed, and pig farming and slaughtering.

(I) Feed business

In feed business, there are premixed feed, concentrated feed as well as compound feed by nutrient. Among them, premixed feed and concentrated feed are both supplied to internal compound feed plants and sold to external markets directly. External customers include other feed enterprises, or dealers with certain feed ingredient procurement, formulation, and production capacity, who produce compound feed on the basis of the Company's premixed feed, and then resell them to other farmers with their own brands or no brands; large farms that have the above capabilities but produce the compound feed for their own use. By animal, the Company’s products include almost all types of feed products such as poultry feed, swine feed, aquatic feed and ruminant feed.

As the Company also has pig farming business downstream, the swine feed produced is supplied to downstream collaborative farmers and company-run farms in addition to sales to external markets. Poultry feed, aquatic feed and ruminant feed produced by the Company are mainly sold to external markets. In the downstream sales, the Company has seized the opportunity of increasing the scale of farming in recent years to increase the direct sales for large-scale farms and breeding enterprises, but also attaches great importance to dealers to maintain full coverage of the majority of small and medium-sized farmers (as shown in the figure below).

The Company’s feed business has maintained a leading position in the domestic feed industry in terms of scale for many years. In 2025, the total domestic and international feed sales volume of the Company reached 29.74 million tons, accounting for 8.7% of the national total output. Due to the recovery of downstream breeding volume, the total sales volume increased from 2024. Among them, there were 16.87 million tons of poultry feed, 10.2 million tons of swine feed, 1.97 million tons of aquatic feed, and 0.53 million tons of ruminant feed. The sales volumes of the main feed products were all among the top in the industry.

In addition to maintaining a leading position in the domestic feed industry for a long time, the Company also took the lead in “going global” on behalf of Chinese feed enterprises in 1999 by establishing the first overseas feed company in Vietnam, which

1. The Company's business model in pig farming In the breeding process, the Company has established a two-line "pyramid" breeding system centered on three-way cross and PIC five-way cross to select pig breeds suitable for regional markets according to the differences between the markets in north and south China. In the context of the recent surge in pig disease outbreaks, the Company has also established a certain proportion of backcross breeding system to increase the supply and regulation capacity of breeding pigs, and enhance its operational stability and rapid response capabilities when dealing with pig diseases and extreme market conditions. After stable operation since 2021, the Company gradually reversed the phased regression following the rapid expansion in the previous years, and the production indicators in all aspects gradually improved. By the end of 2025, the average PSY of the Company's sow production recovered to about 26, which was in the leading level in the industry. In terms of commercial pig finishing, the Company has gradually built finishing farms according to the specific conditions of different projects in different regions. At present, the Company remains its focus on the "company + farmer" collaborative breeding, supported by integrated company-run breeding. By the end of 2025, the ratio of integrated company-run breeding to collaborative breeding was about 38:62, and the proportion of company-run breeding increased compared to the end of 2024. With the improvement of the Company's finishing farm management and talent training, the proportion of integrated company-run breeding will gradually increase in the future and the Company will realize a more balanced development layout of "company + farmer" collaborative breeding and integrated company-run breeding.

2. Division of duties in collaborative finishing

has been deeply involved in the overseas market for a quarter of a century, operating over 60 branches and subsidiaries in 15 countries and regions. Through long-term overseas operations, the Company has obtained a deep understanding of and integrated into overseas cultures, replicated the advanced domestic formula procurement capabilities to overseas markets, and also improved labor efficiency and reduced labor cost by utilizing local personnel in production, sales and other links. Especially in the feed market in Southeast Asia, the Company has become an important Chinese force. In core overseas countries where the Company has key business layout, such as Indonesia, Vietnam, Egypt and other countries, the feed sales of the Company have entered the top four in these countries. In 2025, the Company's overseas feed sales volume recorded 6.38 million tons.

(II) Pig farming and slaughtering business

The Company started to vigorously develop its pig farming business in 2016. From 2019 to 2020, in the wake of major swine disease outbreak, the Company invested heavily in pig farming business in response to the call of the state to stabilize production and ensure supply, resulting in a rapid growth in the pig farming capacity and hog sales. In 2021, the Company's pig farming business entered a stage of stable operation. By 2025, the number of pigs in stock reached 17.55 million, ranking third among domestic listed companies.

1. The Company's business model in pig farming

In the breeding process, the Company has established a two-line "pyramid" breeding system centered on three-way cross and PIC five-way cross to select pig breeds suitable for regional markets according to the differences between the markets in north and south China. In the context of the recent surge in pig disease outbreaks, the Company has also established a certain proportion o backcross breeding system to increase the supply and regulation capacity of breeding pigs, and enhance its operational stability and rapid response capabilities when dealing with pig diseases and extreme market conditions. After stable operation since 2021, the Company gradually reversed the phased regression following the rapid expansion in the previous years, and the production indicators in all aspects gradually improved. By the end of 2025, the average PSY of the Company's sow production recovered to about 26, which was in the leading level in the industry.

In terms of commercial pig finishing, the Company has gradually built finishing farms according to the specific conditions of different projects in different regions. At present, the Company remains its focus on the "company + farmer" collaborative breeding, supported by integrated company-run breeding. By the end of 2025, the ratio of integrated company-run breeding to collaborative breeding was about 38:62, and the proportion of company-run breeding increased compared to the end of 2024. With the improvement of the Company's finishing farm management and talent training, the proportion of integrated company-run breeding will gradually increase in the future and the Company will realize a more balanced development layout of "company + farmer" collaborative breeding and integrated company-run breeding.

In collaborative finishing, the Company and farmers respectively invest different production factors, assume different duties, and share different earnings and risks. In terms of input of production factors, the Company is responsible for the input of piglets, feed, veterinary drugs, vaccines, etc., while farmers provide the input of property, plant and equipment such as pigpen. In addition, farmers need to pay a breeding deposit and bear the costs of labor, water, electricity, and fuel on finishing farms. In terms of division of duties, the Company is responsible for piglet supply, feed supply, epidemic disease prevention and treatment, breeding technology guidance, collection and sales and other process, while farmers are responsible for daily feeding, cleaning and biosafety control. In terms of earnings and risks, the Company bears the market price risk and enjoys the opportunity profit, while farmers neither bear the market risk nor enjoy the opportunity profit. The farmers’ returns are relatively stable and not directly related to the market prices, but closely related to the breeding results. In addition, the Company is exposed to risks that farmers don’t abide by the contract or the Company’s guidance, and sell pigs or use medication without authorization. However, as the scale of collaborative farming has been growing and the collaboration period has become longer in recent years, in case of the aforesaid breaches, farmers will bear huge risk of dishonesty, and the Company will confiscate the breeding deposit and sue the farmers for breach of contract. Therefore, such breaches are becoming less frequent.

2. Division of duties in collaborative finishing In collaborative finishing, the Company and farmers respectively invest different production factors, assume different duties, and share different earnings and risks. In terms of input of production factors, the Company is responsible for the input of piglets, feed, veterinary drugs, vaccines, etc., while farmers provide the input of property, plant and equipment such as pigpen. In addition, farmers need to pay a breeding deposit and bear the costs of labor, water, electricity, and fuel on finishing farms. In terms of division of duties, the Company is responsible for piglet supply, feed supply, epidemic disease prevention and treatment, breeding technology guidance, collection and sales and other process, while farmers are responsible for daily feeding, cleaning and biosafety control. In terms of earnings and risks, the Company bears the market price risk and enjoys the opportunity profit, while farmers neither bear the market risk nor enjoy the opportunity profit. The farmers’ returns are relatively stable and not directly related to the market prices, but closely related to the breeding results. In addition, the Company is exposed to risks that farmers don’t abide by the contract or the Company’s guidance, and sell pigs or use medication without authorization. However, as the scale of collaborative farming has been growing and the collaboration period has become longer in recent years, in case of the aforesaid breaches, farmers will bear huge risk of dishonesty, and the Company will confiscate the breeding deposit and sue the farmers for breach of contract. Therefore, such breaches are becoming less frequent.

3. Pricing and settlement of collaborative finishing

When the Company signs the contract of collaborative finishing with farmers, a basic unit price is first formed according to the market conditions at that time, which would change appropriately according to the latest market changes at the time of pig recycling and settlement. When finished pigs reach the marketable weight, they are weighed, and the basic price is formed by the base unit price multiplying the average weight, before the settlement price is adjusted according to the specific weight of each pig that exceeds or fails to reach the ideal weight range, marketing rate (i.e., the survival rate), rate of conforming products, feeding days, total weight gain, whole-process feed conversion ratio, daily average weight gain, excessive consumption of feed and the other production indicators, thus deriving the final commission payable to contract farmers.

4. Number and structure of contract farmers and their changes

As of the end of December 2025, the number of cooperative free-range farmers who had signed contracts with the Company to raise finishing hogs was 1,418, basically the same as that at the end of December 2024. The average size of contract farmers increased by 12% from the end of December 2024. By structure of the stock scale, the number of farmers each with less than 1,000 pigs accounted for 6%, down 1.8 percentage points from a year earlier; farmers each with 1,001 to 3,000 pigs accounted for abou 53%, down 5.0 percentage points from a year earlier; farmers each with 3,001 to 5,000 pigs accounted for about 26%, up 2.9 percentage points from a year earlier; and farmers each with more than 5,001 pigs accounted for 15%, up 3.9 percentage points from a year earlier.

By structure of the farmers' regional distribution, according to the five regions defined by the Ministry of Agriculture for the prevention and control of major swine diseases, the number of farmers in the northern region accounted for about 13%, up 2.5 percentage points from a year earlier; farmers in the eastern region accounted for 26%, up 4.3 percentage points from a year earlier; farmers in the northwestern region accounted for about 13%, up 1.8 percentage points from a year earlier; farmers in the southwestern region accounted for about 15%, up 2.9 percentage points from a year earlier; and farmers in the south central region accounted for about 33%, down 11.5 percentage points from a year earlier.

5. The Company's business model in pig slaughtering

In terms of pig slaughtering, the Company has established some slaughter supporting facilities in Beijing, Liaoning, Hebei, Shandong, Shaanxi and other places according to the layout and scale of the upstream breeding in different regions. In terms of breeding, in the region with slaughter facilities, the Company gives priority to the internal slaughterhouse for slaughter, and in other regions with no slaughter facilities, pigs are sold externally. In recent years, the Company has enhanced the direct marketing between breeding and external slaughtering enterprises. However, with the current development of the industry, pigs are still need to be sold to pig traders in many regions. In terms of slaughtering, about 70% of the pigs the Company slaughters every year are finished at company-run farms, and the rest are pigs from other farms acquired in the market.

The complete business model of the Company's pig farming and slaughtering business is shown in the figure below.

II. The industry in which the Company operates

(I) Feed business

1. Domestic feed industry

Feed can be classified into premixed feed, concentrated feed and compound feed (or complete feed) according to the scope of nutritional ingredients contained. Premixed feed is the mixture of various nutritional additives such as vitamin, mineral substance and amino acid; the concentrated feed is formed after adding various animal and vegetable proteins into the premixed feed; the compound feed is formed after further adding various energy raw materials into the concentrated feed. In terms of the final nutritional needs, the number of nutritional additives used is small but with high unit value, and the energy raw materials have a low unit value but with large amount used, while the protein raw materials are between both. In 2025, the total industrial feed production across the country was 342.25 million tons, an increase of 8.6% compared with the previous year. Among them, the production of compound feed was 319.46 million tons (accounting for approximately 93.3%), the production of concentrated feed was 13.38 million tons (accounting for approximately 3.9%), and the production of additive premix feed was 7.53 million tons (accounting for approximately 2.2%). The vast majority of feed enterprises produces compound feed. Large enterprises have large demands for premixed feed and concentrated feed due to their large outputs of compound feed, so they usually produce premixed feed and concentrated feed themselves. The small and medium-sized enterprises only produce compound feed due to their small scale, and purchase premixed or concentrated feed as needed from premixed feed business unit of large enterprises or other independent premixed feed enterprises. Some farmers of considerable scale also purchase premixed or concentrated feed directly, before blending the protein and energy ingredients into them for use. Feed can be classified according to the type of animals it is fed to, such as swine feed, poultry feed, aquatic feed and ruminant feed. In 2025, the total national feed production consisted of 166.39 million tons of swine feed (accounting for approximately 48.6%), 32.82 million tons of layer feed (accounting for approximately 9.6%), 100.98 million tons of meat-poultry feed (accounting for approximately 29.5%), 23.23 million tons of aquatic feed (accounting for approximately 6.8%), and 14.76 million tons of ruminant feed (accounting for approximately 4.3%).

Since the beginning of the 21st century, the domestic feed industry has generally maintained a steady growth trend, with an average annual compound growth rate of approximately 6.5% from 2001 to 2025. The gross national production slowed in the mid-2010s and even declined in 2019 due to the major swine disease. However, since the beginning of 2020, due to the recovery of pig production capacity on the one hand, and the further improvement of downstream livestock and poultry farming on the other hand, the industrial feed segment ushered in new growth, with the total national output exceeding 300 million tons for the firs time in 2022. In 2025, due to the partial recovery of the breeding volume in the downstream livestock and aquatic farming sectors, the total industrial feed production across the country reached 342.253 million tons, a year-on-year increase of 8.6% (as shown in the figure below).

With the steadily growing total output, the feeds for different animal species would show different growth trends due to different impacts of long, intermediate, and short cycles. The long cycle refers to the cycle of industrial upgrading and technological progress, such as the slow changes in the degree of downstream large-scale farming, technological maturity, penetration of compounding materials, and consumption habits. The intermediate cycle refers to the cycle of supply-demand relation and price changes of livestock and poultry products, as the periodic increase and decrease in breeding quantity of a particular type of animal downstream will affect the increase and decrease of sales volume of the corresponding feed type upstream. The short cycle refers to the natural disasters and animal diseases that affect specific animals, such as H7N9 flu tha affected the poultry feed in the first half year of 2017, rainstorms and floods in the south China that affected the aquatic feed in 2017, and the major swine disease that greatly affected the swine feed from the mid-2018 to 2019. The most typical trend o change in recent years is swine feed. Its output declined significantly in 2019 and 2020 due to major swine diseases, but has continuously increased significantly since 2021 due to the large-scale and centralized pig farming in the downstream areas. Meat and poultry feed output has also increased significantly in recent years with the scale and centralized downstream breeding. From 2001 to 2025, from the perspective of the average annual compound growth rate of all types of products, the growth rates of swine feed (7.3%), meat and poultry feed (7.3%), and ruminant feed (9.6%) were all higher than the growth rate of total output (6.5%), while the growth rates of aquatic feed (5.6%) and egg-laying poultry feed (3.0%) were lower than the total output growth rate (as shown in the figure below).

With the steady growth of the industry's total volume, the single-plant scale of enterprises, the overall scale of enterprise groups and the concentration degree of leading enterprises have all increased. For instance, in 2018, when the major swine disease broke out, there were only 656 large-scale mills with annual output of more than 100,000 tons nationwide, and their combined feed output accounted for 49.7% of the total national output; by 2025, the number increased to 1,127, and their combined feed output accounted for 65.2% of the total national output. There are now 17 feed mills with annual output of more than 500,000 tons, an increase of 6 mills from the previous year. There are currently 7 enterprise groups with an annual output exceeding 10 million tons. In 2025, the total sales of the top 20 feed enterprises in China accounted for approximately 65% of the total national output. Among them, the total sales of the top 7 leading feed enterprises accounted for approximately 46% of the total national output. Small and medium-sized feed enterprises with insufficient competitive advantages and poor management either reorganized or exited the market, while large enterprises, due to their stronger comprehensive strength, become increasingly dominant in the competition.

The main operational aspects of the feed business include technology R&D, raw material procurement, production and processing, as well as sales and services, usually simply referred to as “technology, procurement, production, and sales”. Among them, the interaction between technology and procurement is the closest. This is because that raw material costs of feed products account for 80-90% of the selling price. Purchasing cheap raw materials is one of the key factors for success. However, the raw material procurement should take the nutritional needs into account, rather than only considering the cost. There are hundreds of raw material types, resulting in thousands of formula combinations. Companies need to design the lowest-cost formula that meets the specific nutritional needs according to the nutrient contents and costs of different raw materials at a given time, thereby making appropriate procurement decisions. The production and processing parts mainly focus on production efficiency and product quality. The sales service part mainly focuses on customer development and maintenance, sells the products that meet different needs to different customer groups, helps farmers enhance the breeding performance through additional services, optimizes the cost and efficiency of the distribution process, feeds back the customer needs and product problems to the technology research and development department in time to form good interactions. It should be noted that the customers include both the feed-using farms and farmers, and feed dealers as distribution channels; in reality, there are also some big farmers who are engaged in breeding and feed distribution as part of their business. On the whole, with the improvement of the scale of downstream farming links, feed companies have more direct access to farms and farmers, and the proportion of direct sales in the industry has gradually increased However, since feed dealers can still play a role in the transfer of funds, storage and distribution of feed products, other supporting animal healthcare products, providing simple technical services, placing farming contracts and organizing the recovery of live poultry and livestock, dealers still play an important role in the feed industry.

With the increasingly fierce competition in the industry, various enterprises continue to study in all aspects of the existing business and strive to improve and innovate. In terms of technology R&D, microbial fermentation technology has given rise to the development of biological environment-friendly feed. In the field of aquatic feed, there has been an upgrade from sinking pellet feed to floating puffed feed. In other categories, there have also emerged increasingly specialized feed types based on feeding stages. Especially in recent years, against the backdrop of rising prices of feed ingredients, imported ones in particular, the feed formulas have undergone significant adjustments, such as reducing the consumption of soybean meal and increasing the consumption of corn, etc. In terms of raw materials procurement, companies continuously explore more diversified new-type raw materials, while for the conventional bulk raw materials, the upstream important raw materials bases are secured by means of strategic partnership agreement, equity participation or self-run operation, with the accuracy of bulk purchasing enhanced by using big data, futures and other financial instruments. In terms of production and processing, more efficient and convenient logistics can support the transportation of a larger radius, thus giving rise to more and more feed plants with larger capacities. Companies improve efficiency through more centralized large-scale production, while at the same time enhancing the quality through specialized workshops or production lines. In terms of sales service, in addition to selling feed products, companies also provide multiple forms of value-added services to farmers by leveraging downstream dealer resources such as technical guidance, animal healthcare veterinarian, financing support, information service and livestock and poultry marketing etc. to enhance customer stickiness, shorten the distribution process, improve the proportion of direct supply, help farmers improve breeding efficiency and increase income.

Besides improvement of their own business links, feed companies also actively explore the upstream and downstream of the industrial chain by extending to raw material planting and trade upstream and reaching out to the breeding, slaughter and deep processing downstream. Among them, poultry feed producers extend their business to the downstream segment of poultry farming and slaughtering earlier and more frequently; while for swine feed enterprises, they extend to pig farming and slaughtering relatively late and infrequently. However, in the most recent two rounds of pig cycle, especially after the outbreak of major swine diseases, such extension has been becoming more and more common. Such extension to the downstream reflects the desire of feed producers to control the downstream breeding and consumer needs, so that they can gain the profits from the downstream while ensuring the upstream feed capacities can be fully utilized. The reason behind this lies in shift of supply-demand relation across the industry and gradual scale-up of the downstream breeding operations, as the focus of industry value is gradually changing from the feed operations in the past to the downstream breeding and food production.

2. Overseas feed industry

Due to the increasingly fierce domestic competition, more and more overseas markets have been noticed by Chinese feed companies and become important opportunities for further growth in the future. In terms of production mode and core competitiveness, it has certain similarities with other industries. That is, beginning from developed and mature European and American countries, first spreading to China, and then spreading to emerging markets such as Asia and Africa. The driving force behind this is on the one hand the transfer of feed and farming technology, on the other hand and more importantly, the macroeconomic development of countries in different regions, the growth of population, and the growth of animal protein consumption demand. However, due to the low gross profit margin of the feed industry as a whole and the large weight of the main products, feed products are mostly produced and sold locally, and are rarely exported. Regardless of foreign feed companies entering China thirty years ago or Chinese feed companies going overseas today, they rely more on their years of technical and management experience accumulated in the home market, and the relative advantage relative to the overall level of the host country, with new production capacity developed in the host country to serve the breeding needs of the host country.

In 2025, the feed industry in regions outside China gradually developed. Domestic feed enterprises, relying on their excellent capabilities in formula, cost and procurement, continued to expand into overseas regions. According to Alltech data, in 2025 the ranking of the world's top ten feed-producing countries remained unchanged from 2024, collectively accounting for 65.2% of global feed production, with China, the United States, and Brazil together contributing nearly 48% of global total output. By feed category, broiler feed remained the largest category at 400 million tons, up 3.7% year-on-year; swine feed reached 380 million tons, a 3.0% increase year-on-year; layer feed totaled 180 million tons, up 3.2% year-on-year; and aquatic feed amounted to 60 million tons, growing by 4.7% year-on-year. By region, Asia maintained its position as the global feed production hub with an output of 560 million tons. Latin America produced 200 million tons, while Africa and the Middle East combined for 100 million tons, showing divergent trends. Africa experienced strong expansion, whereas growth in the Middle East was modest. The Asia-Pacific region (excluding China) saw robust market development driven by rising protein demand due to economic and population growth

The Company is one of the earliest Chinese feed enterprises to enter the overseas market. It established its first overseas feed mill in Vietnam in 1999. After more than 20 years of expansion and optimization, the Company has formed a clear hierarchical market structure overseas, with Indonesia, Vietnam and Egypt as the core countries, and Bangladesh, the Philippines and Myanmar as the key countries. The feed market size of the 6 core countries and key countries has reached over 71 million tons. However, their total population is approximately 826 million, and the per capita feed yield is only equivalent to 38% of China's current level. In the future, as the economies, populations and product penetration rates of these countries further improve, there will still be significant growth potential in the feed market.

(II) Pig farming and slaughtering business

Unlike the feed industry, which has witnessed continuous increase in product penetration and market size due to industrial upgrading and technological progress, pig farming, as the largest source of meat consumption in China, has basically stabilized its overall scale in recent years. Over the past 15 years, with the impact of major swine diseases nationwide such as the major swine disease in 2019 and 2020 eliminated, the annual output of hogs has fluctuated basically around 700 million, and the pork production has also fluctuated around 55 million tons. However, behind this is the long-term improvement of the production efficiency of the whole industry, and the gradual decline in the stock size of breeding sows as the core capacity. For instance, in 2025, annual output of hogs increased by 12% from 2009, but the stock of breeding sows at the end of the year decreased by 17% According to data from the Ministry of Agriculture and Rural Affairs, the number of breeding sows in stock nationwide in 2025 gradually and slowly declined from 40.62 million since January. However, the number remained above 40 million for the first nine months. The Company began to accelerate the process of excess capacity reduction in October, with the number saw a cumulative reduction of 740,000 from October to December. By the end of 2025, the number of breeding sows in stock nationwide reached 39.61 million (101.6% of the normal level). Although it is within the green area of production capacity, due to factors such as the improvement of industry production efficiency and the weakening of the pig disease in the winter of 2025, it is expected that the supply of hogs will still be relatively abundant in 2026.

improving production efficiency. In terms of organizational form, it will first be reflected in the upgrade from individual and concurrent scattered pig farming in the traditional small-scale peasant economy to enterprise-oriented and specialized large-scale pig farming. It will also be reflected in the competition among enterprises, and the survival of the fittest among efficient enterprises and inefficient ones. During this process, the scale of farming entities at all levels and the concentration of leading enterprises will continue to increase. In 2016, the combined output of hogs of the top 20 domestic pig farming enterprises was merely 41.33 million, accounting for 6% of the national total that year. By 2025, the number had reached 253.35 million, a substantial increase of 5 times, and its proportion in the national total of 719.73 million that year also rose to 32.5%.

Pig farming involves breeding pig propagation and commercial pig finishing. The improvement of technology and production efficiency, as well as the upgrade from small-scale farmers to large-scale enterprise-oriented breeding, are first and more prominently reflected in the breeding pig propagation process. The breeding pig propagation can be subdivided into breeding and breeding pig farming. Breeding specifically refers to selection and breeding of high intergenerational good stock, while breeding pig farming refers to further expanding propagation of original breeding pigs, and output of boar semen, sows, and commercial piglets. The breeding of pigs requires long-term research and development accumulation due to very high technological complexity. At present, it is mostly controlled by foreign professional breeding pig companies, although some leading companies in China have made breakthroughs in recent years. However, most domestic enterprises have not yet ventured into the upstream breeding process and still need to introduce GGP pigs or higher-generation breeding pigs from foreign suppliers every few years for GP and parent generation expansion in China. In this regard, some of them are specialized breeding pig companies, who directly sell the breeding pigs and piglets to other companies after expanding propagation of great grandparent pigs introduced abroad, without setting foot in the commodity generation breeding. Some other cases are extension made by large commercial pig companies towards the breeding pig cultivation operations upstream in order to ensure the availability of their own breeding pigs and piglets, with the parental breeding pigs and commercial piglets produced for their own use. To ensure availability of piglets to themselves, some farmers would also participate in the parental breeding operations, i.e. they purchase the parental sows and boar semen from companies and then propagate piglets themselves. Even so, more and more farmers are exiting from the parental breeding operations gradually. It is mainly because that, with the development of breeding technology, large-scale and intensive piglet production by large enterprises has obvious efficiency differences compared with farmers’ piglet breeding. This is reflected in PSY, the most commonly-used indicator in the industry. In the years before the major swine disease outbreak, the average PSY of the entire industry was about 17, that of large companies was generally over 20, and that of farmers’ propagation and breeding was about 15. After the major swine disease outbreak, due to the impact of animal diseases and the rapid repopulation that led to the extensive use of three-way crossbred sows, the PSY of the entire industry generally declined. In the past three years, with the stabilization of production, the elimination of inefficient sows, the improvement of epidemic prevention and control effects, and the increase in the proportion of large enterprises' operations, the production indicators of the entire industry have gradually improved. According to wepig.cn, the PSY of the entire industry increased significantly in 2025, reaching 24.34, but there is still room for improvement compared with 27.56 in the United States in 2025. In this regard, large enterprises will lead the industry in the future, promoting the improvement and independent selection of breeding pigs, and promoting intelligent farming. While driving the entire industry to further increase the overall PSY, they may also continue to maintain their technical and efficiency advantages over farmers in pig breeding.

In the finishing process of commercial pigs, the ratio of company-run farms to farmer-run farms is not as high as the breeding process. It is mainly because that the difference between companies and farmers in technology and efficiency is not as large as it is in the breeding process of breeding pigs. In addition, companies require additional huge investments of property, plant and equipment to build finishing farms. It will be hard for the companies to utilize asset-light expansion model to build finishing farms, and building finishing farms affects investment income as well. As a result, in recent years, when enterprises increase investments in pig farming industry, especially at the early stage of competition for market shares, most companies choose to invest in developing the production capacity of breeding pigs first and choose “company + farmer” collaborative breeding for the commercial pig finishing link. Specifically, this kind of cooperative breeding mainly takes the form of entrusted rearing. That is, the enterprise raises sows to produce piglets and provides the piglets to farmers, along with feed, veterinary drugs and technica services. After the farmers finish finishing the pigs, the enterprise will reclaim the finished pigs and sell them. During this process, the ownership of both the piglets and the finished pigs belongs to the enterprise. In recent years, there are also some companies in some areas sell piglets, feed and veterinary drugs to farmers (usually at a higher price than the market price, to ensure that farmers do not illegally resell the above production materials) and buy back the pigs and sell them after they are finished. At last, there are a few companies directly sell commercial piglets to farmers, but are not responsible for recycling or buying the pigs back.

The outbreak and evolution of major swine diseases in recent years affect numerous companies’ judgments and decisions about company-run commercial pig finishing practices. In the first two or three years after the outbreak, farmers found it relatively difficult to achieve good containment results due to inadequate technologies and experiences in major swine disease containment and limited access to equipment and facilities, thus posing a higher biosafety risk. Some outstanding companies in the industry using the integrated company-run farming model realized major swine disease containment better than farmer-run farming to a certain extent through fine management of the company-run finishing operations. It made numerous companies start considering increasing the proportion of company-run finishing in the medium and long run. However, starting from 2021, the considerable improvement made by farmers in technology, experience, equipment and facilities used for major swine disease containment narrowed their gap with company-run finishing farms; meanwhile, due to continuous mutation of major swine virus that made the latency longer and harder to be detected, company-run finishing farms that are individually large in stock of pigs faced greater pressure in the prevention and control of major swine diseases, while farmer-run finishing farms that usually have two to three thousands of pigs in their herds are more flexible and have stronger competitiveness in terms of finishing costs. Moreover, after the rapid development of many enterprises in the past two or three years, they still have deficiencies in terms of capital reserves, talen capacity reserves, especially in finishing talent capacity reserves. Therefore, the "company + farmer" collaborative breeding mode will remain prevalent in the industry in the next three to five years. On this basis, a "specialized free-range farming company" business model that initially emerged in 2022 and became significantly popular in 2024 has, to a certain extent, strengthened the collaborative breeding model. This business model was initially manifested as "secondary finishing" that emerged in the second half of 2022. Subsequently, some practitioners noticed that if they only engaged in the downstream finishing process, they could flexibly participate in short-term "secondary finishing" during the upward and high periods of the market, and also slow down to carry out full-process finishing during the downward and low periods of the market. This way does not involve too many production rhythm issues in the upstream pig breeding process, and is more flexible. So, on the one hand, they adopt a light-asse model for the downstream, integrating a large number of farmers' finishing farm resources. On the other hand, relying on the centralized finishing resources, they negotiate entrusted breeding contracts with the upstream pig breeding farms in a centralized manner. This can also help the pig breeding farms solve the efficiency problem of decentralized development and management of numerous farmers. Eventually, an upgraded model of "breeding pig enterprise + specialized free-range farming company + farmer" is formed.

Of course, while the "company + farmer" mode is being upgraded, as enterprises gradually recover and accumulate in terms of funds and talent capabilities, and in the longer term, more and more automated and information-based equipment that helps enterprises reduce costs is being popularized in the industry, especially as these new devices and technologies are being promoted and implemented more quickly and widely in company-run finishing farms, large enterprises will still continue to increase the scale of their company-run finishing farms to a certain extent.

Pig slaughtering is the downstream part of breeding. Slaughterhouses buy commercial pigs from farmers, slaughter them and then sell raw pork or cut meat to downstream industries. In the early development stage of the domestic pig industry, small slaughtering workshops were sufficient for the industry due to the low scale of pig farms and the small number of single batches, therefore, there was no strong incentive for pig farmers to go hand in hand with large-scale industrial slaughterhouses. On the one hand, it inhibited the further scale development of pig slaughtering. For example, the number of pigs slaughtered annually of domestic pig slaughtering enterprises representing large-scale slaughterhouses fluctuated around 220 million for a long time before 2018; on the other hand, pig traders have long played an important role in centralizing the scale and scheduling the supply and

demand between farming and slaughtering.

Major swine diseases not only brought great changes in the pig farming link, but also greatly promoted the scale and centralized development of the slaughtering link because of the scale and centralized development of the breeding link. After the downturn of no pigs to be slaughtered in 2019 and 2020, the number of pigs slaughtered annually by designated pig slaughterhouses began to recover and grow rapidly in 2021, and increased to 340 million in 2023, an increase of more than 50% compared to the level of 220 million in previous years. In 2025, the total slaughter volume of large-scale designated pig slaughterhouses was 410 million, a year-on-year increase of 18.3%, but still at a relatively high level. The joint improvement of the scale of farming and slaughtering increased the opportunity for direct sourcing and direct marketing between the two to bypass pig traders. Of course, in a certain period of time, the aforementioned direct sourcing and direct marketing are not a perfect match, and pig trader-involved transactions still occupy a large proportion, because the annual production scale of individual farm is mostly 300,000-500,000 pigs, relatively lower than the annual slaughter capacity of at least 1 million pigs of large-scale slaughterhouses, and the pig production batches are not evenly distributed in each month and week within a year, while the slaughterhouses pursue daily balanced production. However, more and more large companies are building their own slaughterhouses in areas where their breeding is concentrated, and the scale of production is large.

The pig farming industry has long been characterized by distinct cyclical features, with a "pig cycle" typically lasting 3 to 5 years. However, this law has changed with the rapid scale upgrade of the industry and the substantial increase of industrial concentration after the outbreak of the major swine disease. In 2020, the significant reduction in production and high hog prices in the industry caused by a major swine disease stimulated a round of large investment in pig production capacity. Coupled with the improvement of the major swine disease prevention and control level in the whole industry, the production capacity and supply quickly recovered. Since the investment and construction of new production capacity has a certain cycle, and after the completion of new production capacity, enterprises often desire to increase the production load rate as soon as possible to reduce the cost, so although the hog prices have experienced a sharp decline since 2021, the pig production capacity has remained at a high level for a long time after the decline in hog prices. The number of breeding sows in stock nationwide remained above 40 million for more than three years from the end of 2020 to the end of February 2024. The long-term overcapacity also kept the hog prices at a relatively low level for a long time. During that period, due to the mutation of major swine diseases from the end of 2021 to the beginning of 2022, coupled with the newly emerged "secondary finishing” in the industry, the hog price experienced a short-term rebound in the second half of 2022. However, it dropped again at the end of 2022 and continued to fluctuate at a low level in 2023, causing the industry as a whole to face the pressure of losses for a relatively long time. In 2024, the industry experienced a phased reduction in production capacity. The number of breeding sows in stock nationwide dropped briefly below 40 million from March to May. Coupled with market disturbances such as "secondary finishing", the hog prices after the Spring Festival in 2025 showed a situation of remaining high even in the off-season, leading to an excessive optimistic expectation for the market in the second half of the year. The number of breeding sows in stock nationwide remained above 40 million and slightly increased. Against the backdrop of industry scale expansion and increased concentration, the production efficiency of pig farms has significantly improved. With the same scale of breeding sows, the supply capacity of pigs has increased, and the pressure on the supply side has continued to rise. After peaking at 20 yuan/kg in August 2024, hog prices entered a downward trend. The average price for the entire year in 2025 dropped to 13.77 yuan/kg, reaching a new low since 2020. By the end of 2025, the pig stock nationwide was 430 million, up 0.5% year-on-year; the number of breeding sows in stock was 36.91 million, down 2.9% year-on-year, but still exceeding the normal stock of 39 million as determined in the Pig Production Capacity Regulation Implementation Plan (2024 Revision) released by the Ministry of Agriculture and Rural Affairs in early March 2024

Looking back at the pig market situation and capacity changes from 2024 to date, although from the perspective of hog prices, the high price of around 20 yuan/kg is not as high as the one over 25 yuan/kg in the second half of 2022 under the background of "secondary finishing”, hardly implying the arrival of a new cycle. However, from the perspective of the number of breeding sows in stock, the low stock of 39.86 million at the end of April 2024 is indeed the lowest number following the 19.13 million one caused by major swine diseases at the end of September 2019 and before the end of 2025, and it can also be regarded as the sign o a new cycle. From both perspectives, the new characteristics generally presented by the "pig cycle" in recent years include: an extended cycle duration; in the absence of major epidemic disturbances, the price will not be extremely high, and since the production capacity can recover relatively quickly when there is a slight increase in price, the fluctuations in hog prices will also become more stable; although the low price period within the cycle is longer than the high rice period, with the continuou development of industrial scale, the significant increase in industry concentration, especially the share of large enterprises, and the continuous decline in costs, large enterprises as a whole will also achieve more substantial profits than five years ago. The competition focus between pig enterprises will also shift from absolute output and market share to relatively stable scale and lower costs for more sustainable profits. In the future, with the further optimization of the efficiency of the upstream farming link and the reduction of the cost difference between enterprises, the focus of competition may shift to the downstream slaughtering and pork sales link, seeking the differentiated development of sales channels and brands, and the slaughtering link will also usher in new development opportunities.

III. Analysis of core competitiveness

(I) Core competitiveness in feed business

Domestic feed business：

1. Strong bargaining power and resource integration capabilities brought by large-scale operation. Scale is one of the mos essential competitive factors in the feed industry. The feed yield of the Company ranks among the top in the country, with feed production and sales covering 29 provinces, municipalities and autonomous regions at present. The industry-leading production and sales volume and the extensive market coverage enable the Company to reach domestic and foreign grain business giants and large channels of the same magnitude, leading companies in other related industries and local governments at all levels, thus leveraging the strong bargaining power by virtue of its scale advantage to conduct cooperation of various forms and exploit its advantages of resource integration.

2. Leading ingredient cost brought by supply chain management capabilities. In recent vears, the ingredient market has fluctuated sharply. The Company has accelerated the turnover of inventory, with inventory turnover days dropping from a peak of over 20 days to 12 days, and the turnover has continued to accelerate. In terms of ingredient procurement, each major ingredien procurement team of the Company has a regional BP to focus on the corresponding category and undertake regional market research, procurement business, operation support and other work. Through centralized management of feed ingredient procurement business and logistics business across the industry chain and by releasing resource integration capabilities brought by scale advantage, the Company has built the core competitiveness featuring leading ingredient cost and efficient operation.

3. Comprehensive customer service capability integrating upstream and downstream resources of the industrial chain. The Company actively matches its customers with baby animals for farming and animal healthcare resources in each species, with several animal healthcare testing labs built in place to provide support to customers in terms of biosafety and comprehensive animal nutrition. In terms of financing, relying on its powerful platform, the Company actively matches its customers with various financing products, effectively alleviating financial stresses of farmers and providing customers with more facilities while keeping risks controllable. Especially in recent years, with the improvement of the scale and centralization of the domestic pig farming industry, downstream group breeding enterprises have also generated more comprehensive demands for products and services, and the customer service ability has become more important. The Company's farming business has also helped strengthen the service capacity of the feed business. The pig business of the Company fully supports the feed business from three aspects: talent training, scale farm service and breeding SOP sharing

4. Continuously improved fine technology R&D capabilities. With a well-established R&D system, the Company conducts detailed research and development considering regional breeding differences and growth-phase nutritional differences of all varieties, continuously iterating and launching products that meet differentiated needs of breeding customers. Meanwhile, the Company keeps researching alternative ingredient technologies and optimizing its formula costs to increase profitability. In particular, in the context of the escalating international trade disputes since 2025, the Company has also fully accumulated technologies and solutions for reducing the use of soybean meal in feed over the past several years. The Company has successively participated in a number of key national R&D programs and international cooperation projects under the "14th Five-Year Plan", creating new non-grain protein feed products and new energy products to replace corn. It has evaluated the nutritional value of various feed resources such as bacterial protein, black gadfly ash and other new proteins, cottonseed meal, rapeseed meal, palm meal and other miscellaneous meals, distiller's grains, vinegar grains and other residues, as well as cassava, barley and sorghum, and the appropriate addition amount of the corresponding ingredients in livestock and poultry and the high-value application technology, forming a series of technical achievements and application schemes. The "Diversified Feed Application Technology for Pigs and Poultry" developed by the Company has been selected as a "Typical Case of Reducing and Replacing Soybean Meal in Feed" by the Ministry of Agriculture and Rural Affairs. It has been widely promoted and applied in the industry and will play a significant role in alleviating the shortage of protein feed resources in China.

Overseas feed business：

1. The advantages of global capacity layout and localized operation. The Company has established a dense production capacity network in emerging markets such as Southeast Asia and South Asia, with over 60 subsidiaries and branches in 15 countries and regions. Feed factories have been opened in countries such as Indonesia, Vietnam, Egypt, Bangladesh, the Philippines and Myanmar, directly utilizing local agricultural resources to reduce procurement and transportation costs, and avoid trade barriers. The localized production mode enables the Company to respond quickly to changes in market demand, and formulate different production and operation strategies for different countries, forming a flexible production and operation system overseas.

2. Full industrial chain collaboration capability. Relying on its domestic mature industrial chain experience of the "feed - farming - slaughtering and processing”, the Company provides customized feed products and technical services to overseas customers, and drives customer retention with its outstanding feed product capabilities, high-quality supporting services, and the synergy in the fields of seedlings and animal health in the upstream and downstream of the industry

3. Technology R&D and product innovation capabilities. The Company introduces the domestic formula technology advantages to overseas, develops differentiated formulas for different regional breeding varieties, and optimizes the cost structure based on the local raw material supply characteristics, so as to keep the overall production cost leading.

4. Brand and channel resource barriers. Relying on its leading position in domestic agriculture and animal husbandry and 40 years of industry accumulation, the Company enjoys a certain brand recognition in overseas markets, especially in areas with a high concentration of overseas Chinese. Small and medium-sized farmers and large-scale farms are covered in a dual-channe network of "distributors + direct sellers". The Company has also long been involved in the investment of agricultural projects in BRI countries, and has received recognition and policy support from the host governments, further consolidating its channel advantages in the host countries.

5. Risk management and compliance capabilities. Facing risks such as exchange rate fluctuations and geopolitics in overseas markets, the Company adopts a hedging mechanism combining overseas localized teams and financial tools to reduce the impact of exchange rate fluctuations on net profits by locking in costs through foreign exchange futures and ingredient futures.

(II) Core competitiveness in pig farming and slaughtering business

1. Overall balanced capacity distribution close to main sales areas. According to the regional division by the Ministry of Agriculture for major swine disease containment, the Company’s pig farming capacity is more evenly distributed in the five regions, with 1 or 2 provinces as the focus of lavout in each region, and all these provinces being or surrounding core areas of population, economy and consumption in respective region. The balanced production capacity layout can help the Company decentralize risks and avoid considerable losses to the Company as a whole due to animal diseases, natural disasters and extreme market conditions in particular regions during certain period of time. In 2024, the Company renovated epidemic prevention facilities and equipment of some company-run farms in the north that were significantly affected by major swine diseases, as well as some free-range farms, with special attention paid to the transformation of positive pressure ventilation. Since the winter of 2024, the epidemic prevention situation has been greatly improved, making up for the shortcomings that the Company had in the northern market during the past few years where it had production capacity but couldn't fully utilize it. This also enables the Company to fully exert its advantage of balanced production capacity across the country in the future.

2. Gradually improved "pyramid + backcross" dual-breeding system. The Company mainly relied on the "pyramid" breeding system in the past. Now, most of the pig farms in operation have built GP lines and established GP pig herds in accordance with the pyramid configuration requirements. Other independent parental pig farms also have GP farms within the system responsible for the supply of replacement parental pigs. The gradual ramp-up of these GP lines and gradual optimization of the pyramid system will help these pig farms achieve stable full-load operation in the future. In view of the frequent occurrence of animal diseases in the industry in recent years, the Company also actively draws on the best practices of the industry, and has stepped up efforts to establish a backcross pig production and management system for unified management and deployment of the pig business from the middle of 2023 to increase the supply capacity and adjustment capacity of the production of breeding pigs, enhancing its stability and flexibility in business adjustment when dealing with animal diseases and extreme market shocks.

3. Consistently strengthened core population cultivation capability based on based on independent intellectual property selection algorithm, intelligent measurement technologies and biological breeding techniques. For the core breeding pigs such as GP pigs and GGP pigs, the Company continuously upgrades its proprietary breeding and production management software HUGE-HOPE, integrating the independently developed Huge BLUP multi-trait one-step calculation engine. This enables efficien parallel computing of multiple economic traits, with superior computing scale, speed and resource efficiency compared to foreign commercial software. In addition, the Company has further upgraded its intelligent selection and intelligent pre-selection systems to replace manual operations and achieve optimal selection for the entire herd. The selection accuracy and efficiency have been significantly improved. In terms of whole-genome selection technology and its application, the Company has cumulatively built a database of tens of thousands of genetic chips. Pedigree correction, variety identification, and early selection have been fully implemented. The accuracy of selection has significantly improved, and the generation interval has been effectively shortened, creating considerable economic benefits for the industry. In the field of phenotypic measurement of breeding pigs, the Company has completed the domestication of the AI + machine vision + intelligent equipment entire system. Systems for in vivo determination of intramuscular fat, intelligent determination of backfat and eye muscle, and portable intelligent weight estimation have fully covered the core breeding farms, achieving non-destructive, high-throughput, and automated precise measurement. This effectively retains excellent breeding pig individuals and significantly improves measurement efficiency and data accuracy, providing solid support for precise breeding. The above-mentioned technological advancements will significantly promote the

Company's independent selection and breeding of higher-quality core herd pigs, thereby helping to enhance the production efficiency and growth performance of downstream parental and commercial pigs, and strengthening the overall competitiveness of the pig business.

4. Ingredient procurement and formulation development capability in collaboration with feed business For feed ingredient procurement, the Feed Supply Department of Pig BG and the Supply Chain Management Department of Feed BU jointly formed the procurement model of “centralized procurement at headquarters + regional independent procurement”. The bulk and key ingredients are centrally sourced and purchased by the Supply Chain Management Department of Feed BU. Leveraging the scale advantage, they reduce costs and ensure supply through online sourcing and price comparison. Each subsidiary in the industry focuses on the procurement of local ingredients, reaching local suppliers based on regional resources, shortening the cycle and reducing logistics costs, while ensuring the freshness and compatibility of ingredients, forming a "headquarters coordination and regional supplementation" pattern. In terms of nutrition formula R&D and application, the Company has recently closely coordinated and integrated the nutritional research and technical application systems of the pig business and the feed business. Relying on the digitalized formula management system, it integrates real-time data from the farming end, raw material nutritional composition data and growth demand data, and uses algorithm models to precisely match formula parameters, promoting the precise connection between formula and nutritional needs of breeding, effectively improving the efficiency of nutritional conversion.

5. Ever-strengthening whole industrial chain system of "digital farming". In terms of production management, the planning and operation control system launched by the Company in 2021 has been gradually improved, which works in three parts: farming site (farming tasks, environmental control management, video surveillance and site patrolling management), pig farm management (abnormity warning, task reminder, feed management, drug management and death and culling compliance), and corporate control (real-time monitoring and alert, full traceability, plan management, data analysis, performance assessment, etc.), to dynamically control the whole process from the breeding pig end to the finishing end, realizing the unification of the standards of each production process, and promoting the effective execution of production actions. In terms of digital training, relying on the online platform of "New Hope Academy", the Company developed and launched SOP short videos and micro-lessons on pig production biosafety and veterinary skills, with job certification programs matched to improve the job matching degree and stability of frontline workers and improve production efficiency.

6. Strong ability to link breeding and slaughtering and a high brand recognition of fresh pork in multiple regions: the Company currently has pig farming and slaughtering capacity in Beijing, Liaoning, Hebei, Shandong, Shaanxi and other places. In some areas, the Company has matched and customized special pig herd breeding such as black pigs and antibiotic-free pigs in upstream breeding based on the emerging consumer demand facing the downstream slaughtering link. The slaughtering process also represents market demand to manage the pig quality and process of the breeding process, and feedback improvement suggestions in a timely manner to help the upstream breeding process to improve the product quality. In terms of pork brand, "Kinghey" is the designated supplier for the Beijing 2008 Olympic Games, and the Company launched the high-end fresh black pig pork brand "Zhichu" in 2022, which has now been highly recognized by customers and partners in the industry.

(III) Anti-risk capabilities based on integrated industry chain layout and overall credibility

The integrated industry chain layout from upstream feed to midstream pig farming and then to downstream pig slaughtering can help the Company decentralize operational pressure and hedge against risks of market to a certain extent. For example, when the hog price is low, it usually means that the breeding scale is larger, which can bring greater sales of feed in the upstream, and also reduce the purchase price of pig slaughter in the downstream, leading to high production load rate, which is conducive to reducing the cost. The high-turnover characteristics of feed business can also provide the Company with stable cash flow supply.

In addition, the Company has maintained steady operation for more than 40 years, enjoying good social reputation and word of mouth. At present, the Company has sufficient capital reserves, with support from many large financial institutions unreduced. The Company currently has a total credit line of nearly 80 billion yuan granted by financial institutions, and the overall credi utilization ratio is around 60%, leaving considerable room for further withdrawals. The Company has long been maintaining high levels of credit ratings. The high corporate credibility, market recognition and strong financing capacity provided the Company with stable and low-cost refinancing support during the tough periods of the industry, playing an anchoring role for the Company to achieve stable development through cycles.

IV. Analysis of main businesses

1. Overview

In 2025, the domestic agriculture and animal husbandry sector moved from the cyclical recovery seen in 2024 into a consolidation phase characterized by low-level operation. In the pig market, a year-on-year increase in pig stock in the first half of the year led to ample supply, keeping hog prices at relatively low levels overall. In the second half, due to multiple factors such as production capacity transmission from earlier periods and concentrated output from secondary finishing operations, hog price experienced a sharp decline. The industry-wide loss amplitude continued to widen, accelerating capacity reduction. In the feed market, the total inventory of pigs, meat poultry, and egg poultry remained at a high level, providing rigid support for feed demand. Meanwhile, the prices of bulk raw materials such as corn and soybean meal fluctuated upward, posing certain challenges to industry cost control.

During the reporting period, the Company continued to focus comprehensively on its two core business sectors - feed and pig farming/slaughtering, seizing opportunities presented by industry cycles and resolutely advancing the implementation of a variety of operational strategies. For feed business, it adhered to the core concept of "scaling up, adjusting structure, and enhancing efficiency” in the feed business. In the domestic market, the Company continuously strengthened competitiveness and optimized operational efficiency. In the overseas market, it accelerated capacity layout and market expansion, achieving year-round growth in both volume and profit, with sales volume reaching a record high. For pig farming business, it resolutely promoted the strategic upgrade from "raising pigs well" to "raising quality pigs”, continuously strengthening disease prevention and control, refined production management, and breeding genetic improvement, achieving a steady decline in farming costs throughout the year and continuous optimization of core production indicators. While focusing on production and operations, the Company also optimized fund management and financing channels, steadily reduced financial expenses, and maintained stable and ample operating cash flow. It also progressed steadily in revitalizing existing assets and disposing of inefficient assets, continuously optimized its organizational system and team incentives, and activated front-line operational vitality.

During the reporting period, the Company reported operating revenue of 106.856 billion yuan, representing a slight year-onyear increase. However, due to one-off factors including a sharper-than-expected decline in hog prices in the fourth quarter, provisions for biological assets, and the write-off of property, plant and equipment, the Company's full-year performance turned from profit to loss. Excluding the impact of these one-off factors, the Company's core operations remained stable, with the feed business steadily increasing its profit contribution and the pig farming business significantly improving costs. This provides a solid foundation and strong confidence to weather the bottom of the cycle

(I) Feed business

In 2025, the Company's feed business resolutely implemented a specialized development strategy focused on scaling up effectively. It closely followed changes in market demand and continuously deepened the core measures of "scaling up, adjusting structure, and enhancing efficiency". The growth in sales volume in the domestic market consistently outperformed the industry average, while overseas markets achieved rapid breakthroughs. Overall, the business achieved growth in both volume and profit, with continuously improving profit quality.

1. In-depth strategy implementation, pushing steady scale growth

The Company continued to base its efforts on scale growth, guided by improvements in operational efficiency. Adapting to the trend of scaled farming, it increased efforts to develop large-scale farms and key customers. By deeply integrating products and services, supplemented by supply chain and financial empowerment, the Company optimized customer cooperation models, achieving rapid growth in sales to core customers. By feed type: it continued to consolidate its traditional advantage in poultr feed, with poultry feed sales volume maintaining steady growth. Seizing the opportunity presented by the restored pig herd numbers, it increased efforts to develop grower-finisher feed customers, resulting in a significant increase in external swine feed sales volume. It also strengthened specialized operations in aquatic feed and ruminant feed. In terms of aquatic feed, it focused on the specialty aquatic feed segment, achieving organizational and product upgrades and sales breakthroughs in core markets. In terms of ruminant feed, it achieved counter-trend growth amidst industry capacity reduction

2. Procurement system optimization, enhancing cost control capabilities

Facing a market environment of fluctuating upward prices for bulk raw materials in 2025, the Company quickly responded to market changes by establishing a full-chain procurement control system. For cereal raw materials, it accelerated inventory turnover, flexibly applied alternative raw materials, and actively expanded import procurement channels. For protein raw materials, it accurately seized spread procurement opportunities in the short term and deepened the application of futures tools in the long term The Company continuously optimized its online sourcing and price comparison system, maintaining a high usage rate throughout the year, significantly improving sourcing matching efficiency and supplier participation compared to the previous year. It also deepened long-term cooperation with strategic suppliers, adding a number of new core strategic suppliers, expanding supplier credit cooperation, and achieving direct system connections for procurement and supply, further enhancing procurement stability and bargaining power. In overseas markets, relying on its Singapore platform, the Company leveraged the advantages of globa procurement coordination, strengthened strategic cooperation with international grain traders, and continuously optimized its global procurement layout.

3. Lean operations management, continuously promoting cost reduction and efficiency improvement

Aiming to build a feed enterprise with optimized cost and the highest efficiency, the Company promoted operational optimization and cost control across the entire chain. On the production sided, it advanced the technical transformation of outdated equipment and the intelligent upgrading of plants. Adapting to the needs of large customers, it increased the production and sale of bulk feed. The annual feed cost per ton decreased by over 30 yuan. For low-efficiency branches and subsidiaries with low capacity utilization, it assigned special assistance teams for on-site guidance, leading to a significant year-on-year increase in sales volume for these low-efficiency companies and a continued reduction in the number of loss-making entities. On the logistics side, it issued and implemented measures for logistics cost reduction. Through a series of initiatives such as optimizing bidding and negotiation, connecting with third-party logistics platforms, and optimizing transportation routes and modes, it continuously reduced overall logistics costs and improved distribution efficiency. It also continuously deepened digital empowerment, connecting the entire digital management process of sales forecasting, procurement planning, production scheduling, and logistics distribution to enhance overall operational efficiency.

4. Increasing overseas investment, achieving breakthrough growth in business

The Company continued to regard its overseas feed business as the third growth driver, increasing resource investment and capacity layout to drive rapid growth in overseas operations. During the reporting period, the Company advanced overseas capacity construction through multiple means, including expanding existing plant production lines and building new plants, continuously increasing overseas feed production capacity. Simultaneously, it focused on key core countries such as Indonesia Vietnam, Egypt, the Philippines, and Bangladesh, continuously increasing local market share. In most of the core countries, its market share has already ranked among the top three. In terms of talent development, it transferred domestic experienced management and technical personnel through the Inclusion Program and issued a development plan for cultivating local talent. I provided special training programs such as Global Backbone Force and Aquaculture Elite to promote the dual improvement of Chinese and local talent capabilities, building a sustainable localized operation system. During the reporting period, the overseas feed sales volume increased by 21% year-on-year, with all regions achieving double-digit growth, laying a solid foundation for subsequent medium- to long-term growth

During the reporting period, the Company's total feed sales volume reached 29.74 million tons, a year-on-year increase of 15%, of which external feed sales volume was 24.51 million tons, a year-on-year increase of 16%. Among external feed sales: poultry feed sales volume was 16.57 million tons, a year-on-year increase of 13%; swine feed sales volume was 5.33 million tons, a year-on-year increase of 26%; aquatic feed sales volume was 1.97 million tons, a year-on-year increase of 17%; ruminant feed sales volume was 530,000 tons, a year-on-year increase of 20%. Overseas feed sales volume was 6.38 million tons, a year-on-year increase of 21%. The feed business reported operating income of 76.019 billion yuan, a year-on-year increase of 10.66%.

(II) Pig farming and slaughtering business

In 2025, supply in the domestic hog market was ample, with hog prices showing a general downward trend throughout the year, leading to deep losses across the industry. The Company resolutely committed to promoting the refined management of its farming business, taking disease prevention and control as the bottom line, optimization of production indicators as the core, and breeding/genetic improvement as the key lever. It continuously drove a steady decline in farming costs, continuously optimized core production indicators, demonstrating strong operational resilience during the industry downturn. Normal operating farms achieved cost reductions throughout the year.

1. Comprehensive upgrade of the disease prevention system, with remarkable health management effectiveness

The Company continued to strengthen its biosafety defense. Building on the farm line prevention upgrades in 2024, it further optimized the whole-process disease prevention management system and strengthened the normalized prevention and control of major epidemic diseases in winter and spring. During the reporting period, through multiple measures including continuou optimization of hardware facilities, environmental monitoring and early warning, biosafety process upgrades, and improvement o emergency response mechanisms, the Company achieved a reduction in the incidence of major swine diseases by more than half compared to the previous year. The incidence of other key diseases such as PED (Porcine Epidemic Diarrhea) and PRRS (Porcine Reproductive and Respiratory Syndrome) also decreased significantly, substantially reducing losses from death and culling, effectively stabilizing the production rhythm, and laying a foundation for optimizing production indicators and reducing costs.

2. Intensive production management, with core indicators continuously improving

The Company continued to deepen full-process refined production management, and promoted the continuous improvement of production indicators at all stages. In the breeding pig stage, it focused on optimizing the selection and mating management of gilts, improving the enrollment rate of gilts, reducing the abnormal culling of sows with low parity, and optimizing the precise feeding management for pregnant sows, thereby effectively reducing piglet weaning costs. In the finishing stage, it focused on strengthening management during the empty barn period, controlling mortality in medium and large pigs, and continuously increasing the proportion of self-finishing. By the end of the year, the self-finishing ratio increased to nearly 40%, further improving the efficiency of asset utilization in the finishing stage.

Through full-process management optimization, the Company achieved continuous improvement in several core production indicators: the annual average number of weaned pigs per litter reached 11.4, an increase of 0.6 from the previous year; the annual average PSY reached nearly 26, an increase of 1.2 from the previous year; the annual average weaning cost was 251 yuan per head, a decrease of 40 yuan per head from the previous year; the annual average finishing survival rate reached 94%, an increase of 2 percentage points from the previous year; the annual average daily gain reached 698g, an increase of 23g from the previous year; the annual average feed conversion ratio continued to optimize. On the cost side, the total cost of finishing hogs for normal operations on the Company's farms declined steadily throughout the year, dropping to 12.2 yuan/kg by December, a significant decrease compared to the same period last year

Continuously improved breeding system, with genetic improvement accelerated.

The Company resolutely advanced its strategy upgrading from "raising pigs well" to “raising "quality pigs", continuously improving its "pyramid + backcross" dual-breeding system to accelerate the genetic trait improvement process. On the boar side, it completed the comprehensive replacement of high-performance terminal boars. Currently, terminal boars with a daily gain of over 1,000g have achieved full coverage within the system, and the coverage rate of high-performance terminal boars reached 99%, a significant increase from the previous year. On the sow side, it promoted the high-quality replacement of purebred sows in GP farms and improved the reproductive performance in parent farms, achieving a steady year-on-year increase in the annual average number of live piglets born per litter. It also optimized the layout and operational efficiency of boar stations, continuously reducing the cost of breeding pig cultivation, providing core support for subsequent improvements in farming efficiency and continued cost reduction.

4. Digital intelligence-driven empowerment, with steady improvement in operational efficiency

The Company continued to promote digital and intelligent construction across the entire farming process, empowering refined management with technology. During the reporting period, the coverage rate of intelligent equipment such as silo weighing systems for free-range finishing farms, needle-free injection devices, and smart ultrasound machines continued to increase, effectively improving the precision of data control and operational efficiency in the farming process. On finishing farms, it introduced a Pig Farming AI Assistant, covering multiple functional modules such as veterinary consultation, real-time query and analysis of production indicators, providing intelligent decision support for front-line production management. Additionally, the Company continuously optimized its hog sales strategy, flexibly adjusting the sales mix of piglets and finished pigs according to market conditions to maximize sales value amidst market fluctuations, while continuing to promote the synergistic effect of the industrial chain between slaughtering and farming operations

During the reporting period, the Company sold a total of 3.7552 million piglets and 13.7902 million finished hogs, totaling 17.5455 million, recording operating income of 20.992 billion yuan (slightly less than the cumulative sales proceeds listed in the monthly sales briefings due to offsets from sales to internal slaughterhouses). It slaughtered a total of 3.68 million hogs, recording operating income of 7.537 billion yuan. The pig business as a whole reported an operating income of 28.529 billion yuan.

2. Revenue and cost

(1) Composition of operating income

Unit: yuan

(2) Industries, products, regions and sales models that account for more than 10% of the Company’s operating income or operating profit

^Applicable □Not applicable

The Company’s adjusted main business data for the past year as of the end of the reporting period, if the statistical standards of the Company's main business data is adjusted during the reporting period

□Applicable ^Not applicable

(3) Whether the Company’s physical sales revenue exceeded the labor service revenue

^Yes □No

Notes on causes behind the 30% or greater year-on-year changes in the relevant data ^Applicable □Not applicable

The year-on-year increase in feed inventory is mainly due to the fact that, based on the steady growth of feed sales and in response to fluctuations in ingredient prices, the Company appropriately increased its safety inventory at the end of the period.

(4) Performance of major sales contracts and major procurement contracts executed by the Company as at this reporting period

□Applicable ^Not applicable

(5) Composition of operating costs

Industry category

Industry category

Unit: yuan

Notes

None

(6) Whether the scope of consolidation changed during the reporting period

^Yes □No

1. The entities added to the consolidated statements of this year include:

Hubei Xinsheng Houpu Technology Co., Ltd., Guang’an New Hope Liuhe Livestock Development Co., Ltd., Qingdao Xinjiali Farming Technology Co., Ltd., Hainan New Hope Liuhe Farming Technology Co., Ltd., New Hope Tongnai Nutrition Technology Co., Ltd., PT NHSP Animal Nutrition Indonesia, PT New Hope Animal Technology Indonesia, Linyi New Hope

Hengli Farming mathrm C o. , Ltd., Xiantao New Hope Liuhe Feed Co., Ltd., Fengcheng New Hope Haofeng Feed Co., Ltd., Lianyungang New Hope Liuhe Feed mathrm C o. , Ltd., Sheyang New Hope Biotechnology Co., Ltd., Xinliu Chuanyi (Fujian) Farming Development mathrm C o. Ltd., Lingbao New Hope Feed mathrm C o. , Ltd., Emeishan New Hope Feed mathrm C o., Ltd., Taizhou New Hope Biotechnology mathrm C o. , Ltd., and Xinhe Lanka International Trading Pte. Ltd., all established in 2025 and included in the consolidated financial statements as of the date of their establishment.

2. The entities removed from the consolidated statements this year include:

Chaoyang New Hope Farming Technology mathrm C o.. , Ltd., Handan Henong Livestock and Poultry Breeding mathrm C o., Ltd., Wei County New Hope Feed mathrm C o., Ltd., Fuxin Liuhe Breeding Service mathrm C o., , Ltd., Sichuan New Hope Liuhe Xueyu Tianlu Supply Chain Management mathrm C o. , Ltd., Xuzhou Jinfeng Liuhe Feed Co., Ltd., Guangyuan New Hope Liuhe Farming Technology Co., Ltd., Bayannur New Hope Liuhe Feed Technology mathrm C o. , Ltd., Meitan New Hope Agricultural Technology mathrm C o. , Ltd., Laoling Liuhe Yuexin Feed mathrm C o. , Ltd., Changzhi Shuanglong Food mathrm C o. , Ltd., Shenyang New Hope Kinghey Food mathrm C o. , Ltd., Wulian Xinhao Breeding mathrm C o. , Ltd., Zhucheng Xinhao Farming Technology mathrm C o.. , Ltd., Quyang Xinhao Farming mathrm C o., Ltd., Nanhe County Xinhao Farming Technology mathrm C o. , Ltd., Zhangwu New Hope Liuhe Farming Co., Ltd., Liaoning Jinguan Farming mathrm C o. , Ltd., Kangping Xinwang Liuhe Farming mathrm C o.. , Ltd., Yi County Jinguan Farming mathrm C o., Ltd., Heishan County Jincheng Farming mathrm C o.. , Ltd., Sishui New Hope Yuwang Technology mathrm C o. , Ltd., Shaoguan Xinyue Farming Technology mathrm C o. , Ltd., Shanghe Liuhe Feed Co., Ltd., Shandong Xiang'an Livestock and Poultry Breeding mathrm C o. , Ltd., Chaoyang Xinwang Farming mathrm C o. ., Ltd., Anqiu New Hope Liuhe Farming Co., Ltd., Tianjin Yunling Enterprise Management Consulting Partnership (LP), Liaoning Xinwang Food mathrm C o. , Ltd., Shaanxi Xinliu Farming Technology mathrm C o. , Ltd., Dongguang County Xinhao Farming Co., Ltd., Huazhou Xinchi Animal Husbandry mathrm C o. , Ltd., Lu'an Xinxi Food mathrm C o. , Ltd., Yanwei Information Technology (Shanghai) mathrm C o.. , Ltd., Tai'an Liuhe Jili Feed mathrm C o. , Ltd., Sichuan Qinrun New Material Technology mathrm C o. ., Ltd., Linyi Hengli Feed mathrm C o. ., Ltd., and Langxi Huaren Feed mathrm C o. , Ltd. Among them, Tai'an Liuhe Jili Feed mathrm C o. , Ltd., Sichuan Qinrun New Material Technology mathrm C o. , Ltd., Linyi Hengli Feed mathrm C o. , Ltd. and Langxi Huaren Feed mathrm C o. , Ltd. were removed from the consolidated financial statements due to the disposal of the equity in these 4 companies this year; the remaining companies were all deregistered in 2025, and excluded in the consolidated financial statements.

(7) Significant changes or adjustments to businesses, products or services of the Company within the reporting period

□Applicable ^Not applicable

(8) Major customers and suppliers

Major customers

Top five customers

Notes on other information of major customers

□Applicable ^Not applicable

Major suppliers

Top five suppliers

Notes on other information of major suppliers □Applicable ^Not applicable

During the reporting period, the Company's trade business income accounted for more than 10% of the total operating income □Applicable ^Not applicable

3. Expenses

Unit: yuan

4. R&D investment

^Applicable □Not applicable

R&D personnel

R&D investment

Reasons for significant changes in composition of R&D personnel of the Company and their effects □Applicable ^Not applicable Reasons for significant changes in the percentage of total R&D investment in operating income compared to the previous year

□Applicable ^Not applicable

Notes on causes of substantial changes in the capitalization rate of R&D investment and their justifications

^Applicable □Not applicable

The capitalization rate of R&D investment decreased by 100% compared to the same period. This is mainly due to the fact that the Company's previous investment in R&D efforts enhanced its digitalization level in breeding, promoting efficient breeding and risk warning. This R&D project has been completed and recorded in intangible assets, resulting in a decrease in the amount of R&D capitalization compared to the same period.

5. Cash flows

Unit: yuan

Notes on major influencing factors for significant YoY changes in related data

^Applicable □Not applicable

The net cash flows from investing activities decreased by 42.61%, mainly due to the large-amount time deposits maturing during the same period and the substantial dividends received from equity investments.

Notes on reasons for significant difference between the net cash flows from operating activities within the reporting period and net profit of this year

□Applicable ^Not applicable

V. Analysis of non-main business

^Applicable □Not applicable

Unit: yuan

VI. Analysis of assets and liabilities

1. Significant changes in asset composition

Unit: yuan

Overseas assets hold a large proportion □Applicable ^Not applicable

2. Assets and liabilities measured at fair value

^Applicable □Not applicable

Unit: yuan

Other changes

Whether the measurement attributes of the Company’s major assets changed significantly during the reporting period □Yes ^No

3. Restrictions on asset rights as at the end of the reporting period

VII. Analysis of investments

1. General condition

^Applicable □Not applicable

2. Significant equity investments acquired during the reporting period

□Applicable ^Not applicable

3. Ongoing significant non-equity investments during the reporting period

□Applicable ^Not applicable

4. Investments in financial assets

(1) Investments in securities

^Applicable □Not applicable

Unit: yuan

(2) Investments in derivative

^Applicable □Not applicable

1) Derivatives investments for hedging purposes during the reporting period

^Applicable □Not applicable

Unit: 10,000 yuan

2) Derivatives investments for speculative purposes during the reporting period

□Applicable ^Not applicable

The Company had no derivatives investments for speculative purposes during the reporting period.

VIII. Sale of major assets and equities

1. Sale of major assets

□Applicable ^Not applicable

The Company did not sell any major assets during the reporting period.

2. Sale of major equities

□Applicable ^Not applicable

IX. Analysis of major majority-owned and minority-owned subsidiaries

^Applicable □Not applicable

Major subsidiaries and minority-owned subsidiaries that have an impact on the Company’s net profit of more than 10%

Unit: yuan

Acquisition and disposal of subsidiaries during the reporting period

^Applicable □Not applicable

Notes on major majority-owned and minority-owned subsidiaries

X. Structured entities controlled by the Company

□Applicable ^Not applicable

XI. Outlook for the Company’s future development

(I) The Company’s development strategy

As an industry practitioner with over 40 years of experience in the agriculture and animal husbandry sector, the Company has always adhered to a long-term value philosophy, upheld the fundamental livelihood value of the industry, remained customercentric, and committed itself to providing safe, reliable, and high-quality animal protein to its customers. It strives to become an internationally leading full-chain service provider for the breeding industry, achieve win-win development with upstream and downstream partners, promote green, environmentally friendly, and sustainable development of the industry, and ensure the stability of the food supply for the people.

In 2025, the Company continued to focus on its two core business segments: feed production and pig farming & slaughtering, while operating in both domestic and international markets. Through the coordinated efforts of its three major business units: Feed BU, Overseas BU, and Pig BG, the operational quality of its core businesses has been continuously optimized. Looking ahead, the Company will remain committed to its established strategic direction, align with industry development trends and national industrial policies, and drive steady growth in its feed business, breakthrough growth in its overseas business, and quality and efficiency improvements in its swine business. This will be achieved on the basis of scale growth, with a focus on efficiency enhancement and professional competence, thereby continuously strengthening the Company’s core competitiveness and resilience against market cycles, and achieving long-term sustainable development.

(II) Business plan for the next year and possible operational risks

1. Feed business

The strategic goal of the feed business is steady growth, continuously restoring and strengthening its industry-leading competitiveness. The guiding principle is to unwaveringly adhere to the approach of “expanding scale, optimizing structure, and improving efficiency”. On the basis of sustained scale growth, the Company will deepen specialized operations, focusing on four core paths: “scale expansion, structure optimization, efficiency improvement & cost reduction, and team activation”.

Scale expansion: the Company will continue to consolidate its traditional advantages in the poultry feed sector, driving capacity utilization improvements at individual plants through scale growth in poultry feed, thereby maintaining its leading position in overall market share; it will seize the development opportunities arising from the scaling of breeding operations, and intensify efforts to develop core customers such as large-scale pig farms and leading free-range farming groups, thereby driving continuous growth in swine feed sales.

Structure optimization: the Company will closely monitor the new demands of large-scale breeding customers, strengthen its capabilities in developing and servicing small and medium-sized pig farms in the swine feed segment, focus on the specialty feed track in the aquatic feed segment, and continue to expand the specialized market in the ruminant feed segment; by introducing specialized talent and building professional service systems, it will continuously optimize its product mix and enhance overal profitability.

Efficiency improvement & cost reduction: the Company will continue to deepen the optimization of its procurement system, enhance its global procurement and supply chain management capabilities, and strictly control raw material costs; with the goal of achieving full-capacity operation at individual plants, it will implement one-on-one supervision and improvement for underperforming plants with capacity utilization below 80%, continuously reducing loss-making entities; it will also advance the smar transformation of plants and full-process digital management, continuously optimize logistics systems, and drive down per-ton costs.

Team activation: the Company will continue to improve its process-based assessment, red-blue flag ranking, and elimination mechanisms, while selecting and cultivating emerging talent to fully energize front-line teams; it will strengthen coordination between domestic and overseas operations and encourage domestic talent to explore overseas markets, thereby achieving mutual synergy and capability enhancement.

2. Overseas business

The strategic goal of the overseas business is breakthrough growth, positioning it as the third driver of scale and profit growth for the Company. The guiding principle is to rapidly build strong professional operational capabilities and drive business expansion and strengthening, focusing on three core paths: “focus on core markets, capability breakthroughs, and steady capacity expansion”.

Focus on core markets: the Company will continue to focus on key core countries such as Indonesia, Vietnam, Egypt, Bangladesh, and the Philippines, deeply cultivating local markets with the priority goal of increasing market share, while maintaining profitability; it will also concentrate on its core feed business and appropriately develop supporting industry chains to build regional competitive advantages by taking into account the characteristics of each country's market.

Capability breakthroughs: the Company will establish deep coordination with domestic product capability development to rapidly enhance the product competitiveness of overseas feed, with particular focus on breaking through technical and market barriers in high-end feed types such as aquatic feed; it will continue to deepen localized operations, improve local talent development systems, enhance local management and service capabilities, and build a sustainable overseas business model.

Steady capacity expansion: adhering to the development approach of “full capacity → expansion → full capacity again”, the Company will first drive continuous improvement in capacity utilization at existing plants and lines, while steadily expanding production capacity in core countries through various means, including greenfield construction, mergers and acquisitions, and light-asset leasing cooperation, so as to ensure that new capacity projects are delivered according to schedule and quality standards, quickly translating into actual sales volume and profit contributions.

Overall, the Company aims to achieve a million-ton-level increase in overseas feed sales in 2026, steadily advancing toward its medium-to-long-term goal of reaching 10 million tons in overseas feed sales by 2030.

3. Pig business

The strategic goal of the pig business is quality and efficiency improvement, establishing it as a core pillar of the Company’s profitability. The guiding principle is to fully achieve an upgrade from “raising pigs well” to “raising quality pigs”. The Company will focus on four core paths: “health management, continuous cost reduction, breeding improvement, and efficiency and profit enhancement”, while actively responding to national policies to reasonably plan production scale and promote the healthy and orderly development of the industry

Health management: the Company will continue to strengthen its biosafety defenses, further improve its system for the regular prevention and control of major epidemics, continuously reduce the incidence of major diseases such as ASF, and steadily advance the pseudorabies eradication of more farms, thereby establishing a solid foundation for stable production and cost reduction.

Continuous cost reduction: in the short term, the Company will continuously strengthen basic management across all segments. In the sow segment, the focus will be on increasing the number of weaned piglets per litter, the replacement gilt entr rate, and the farrowing rate. In the finishing segment, the focus will be on improving survival rates, reducing feed conversion ratios, increasing turnover efficiency, and steadily increasing the proportion of self-finishing hogs, thereby continuously reducing unit growth costs. In the medium to long term, the Company will leverage the results of breeding improvements to further unlock the potential for cost reduction.

Breeding improvement: the Company will continue to improve its dual breeding system (“pyramid + backcross”), and carry out internal and external genetic exchanges and foreign introductions, so as to introduce high-quality breeding stock and semen, and continue to promote the full coverage and high-quality replacement of high-performance boars and purebred sows. This will accelerate the realization of genetic trait improvements, enhancing breeding efficiency and profitability at the genetic source.

Efficiency and profit enhancement: the Company will continuously optimize its operating strategies, shifting from a purely production-oriented mindset to a comprehensive business approach. It will flexibly adjust the sales mix of piglets and finishing hogs in response to cyclical fluctuations, seizing market opportunities to maximize sales value. The Company will also continue to build digital and intelligent breeding systems, optimize full-process operational efficiency, and improve per capita productivity. Additionally, it will steadily advance the development of its slaughtering business and specialty breeding operations, optimize product mix, and enhance the synergistic effects of the industrial chain and overall profitability levels.

For possible operating risks, please refer to the section "risk warning regarding forward-looking statements such as future plans in the annual report” in Section 1 of this report.

XII. Surveys, communications, interviews and other events during the reporting period

^Applicable □Not applicable

XIII. Development and implementation of market value management system and valuation enhancement plan

Whether the Company developed market value management system.

^Yes □No

Whether the Company disclosed valuation enhancement plan

□Yes ^No

To enhance the investment value of the Company, increase investor returns, standardize the Company's market value management activities, ensure the compliance, scientificity and effectiveness of the Company's market value management activities, and maximize the Company's value and shareholders' interests, in response to the call in the Several Opinions of the State Council on Strengthening Supervision, Preventing Risks and Promoting High-Quality Development of the Capital Market to encourage listed companies to establish a market value management system, the Company, in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Regulatory Guidelines for Listed Companies No. 10 - Market Value Management, the Shenzhen Stock Exchange Listing Rules, Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange - Standardized Operations of Main Board Listed Companies and such other laws, regulations and normative documents, as well as the Articles of Association, has formulated the Market Value Management System, which was approved at the first meeting of the 10th Board of Directors held on April 3, 2025.

XIV. Implementation of the "Quality & Return Dual Improvement" action plan

Whether the Company disclosed the "Quality & Return Dual Improvement" action plan. □Yes ^No

Section 4 Environmental, Social and Corporate Governance

I. Basic information on corporate governance

The Company established a standard corporate governance structure, formulated rules and policies in line with its business development, defined duties and authorities in terms of decision making, execution and supervision and formed effective division of duties and check and balance mechanisms according to the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, the Code of Corporate Governance for Listed Companies and the Shenzhen Stock Exchange Listing Rules.

During the reporting period, shareholders’ meetings, meetings of the Board of Directors and meetings of the Board of Supervisors were all held in strict in accordance with relevant laws, regulations and bylaws. The resolutions were legal and valid. The directors, supervisors and the management team were diligent and responsible, and fulfilled their relevant duties well. Adhering to relevant laws, regulations and normative documents, the Company also continuously strengthened the construction of the internal control system to improve the level of internal control governance, effectively promoting its standardized and compliant operation, earnestly ensuring the integrity of its assets and the security of its property, and safeguarding the interests of the Company and its shareholders.

Whether there is any significant difference between actual condition of corporate governance and laws, regulations and provisions enacted by CSRC regarding corporate governance of listed companies.

□Yes ^No

There was no significant difference between actual condition of corporate governance and laws, regulations and provisions enacted by China Securities Regulatory Commission regarding corporate governance of listed companies.

II. Independence of the Company from its controlling shareholder and actual controller in terms of assets, personnel, finance, organization and other aspects

The Company is completely separated from its controlling shareholder New Hope Group in terms of business, personnel, assets, organization, finance and other aspects, and has independent and complete business and independent management ability.

1. Business independence: the Company conducts its business operations independently and has no dependence on the controlling shareholder or other affiliates. The Company has independent systems for raw materials procurement and products production and sales, and its raw materials procurement and products production and sales are not dependent upon the controlling shareholder or other affiliates.

2. Personnel separation: the Company has HR department dedicated to its labor, personnel and wage management, and has formulated a series of rules and regulations for staff assessment. The Company’s President and other senior management do not hold dual position in the Company or any shareholder entity, and all receive compensation from the Company.

3. Asset integrity: the Company has independent and complete production system, auxiliary production system and supporting facilities, as well as other assets such as land use rights, industrial property rights and non-patented technologies. The controlling shareholder has not illegally occupied the Company’s funds, assets or other resources of the Company in any manner or form.

4. Organizational independence: the Company is completely separated from its controlling shareholder and other affiliates in terms of office and production and business sites, without mixed operation or co-office. All departments of the Company have no subordinate or affiliated relationships with any organization of the controlling shareholder or affiliates, nor did the controlling shareholder intervene in business activities of the Company in any form or manner.

5. Financial independence: the Company has set up an independent finance department as its financial management organization, established independent accounting systems and financial management policies, and makes independent financial decisions and implements vertical management of financial affairs of its branches and subsidiaries according to the requirement o the accounting system of listed companies. The Company opened and maintains independent accounts with banks and pays taxes independently according to law.

III. Horizontal competition

□Applicable ^Not applicable

IV. Directors and senior management

1. Basic information

Whether any directors or senior management resigned during the reporting period ^Yes □No

Changes in directors and senior management of the Company

Mr. Liu Yonghao and Mr. Wang Hang stepped down as directors, and Ms. Cai Manli stepped down as an independent director, each due to the Board of Directors’ re-election. Mr. Peng Long was removed from the position of independent director for personal reasons, while Mr. Zhou Boping resigned as a director also for personal reasons. Mr. Zhang Minggui stepped down as President, Mr. Chen Xingyao stepped down as Vice President & Chief Financial Officer, and Mr. Lan Jia stepped down as the Secretary to the Board of Directors & Chief Strategic Investment Officer, all due to the Board of Directors’ re-election.

^Applicable □Not applicable

2. Incumbencies

Professional background, main work experience and current main duties in the Company of current directors and senior management

Directors:

Liu Chang, female, holds an Executive Master of Business Administration (EMBA). She previously served as Office Director of Sichuan New Hope Agriculture Co., Ltd., Office Director of New Hope Dairy Co., Ltd., and Director of New Hope Liuhe Co., Ltd. She currently serves as Chairman of the Company, Director of New Hope Group Co., Ltd., Director of Nanfang Hope Industry Co., Ltd., and Director of New Hope Dairy Co., Ltd.

Zhang Minggui, male, graduated from China University of Geosciences (Beijing) with a Bachelor’s degree in Accounting and a Master’s degree in Management. He previously served as Secretary of the Youth League Committee and Office Director of New Hope Group Co., Ltd., President of New Hope Real Estate Division, Non-executive Director and Chairman of New Hope Service Holdings Limited, Chairman of New Hope Group Sichuan Headquarters, Vice President of New Hope Group Co., Ltd., and Executive Chairman and President of the Company. He currently serves as Director of the Company, Secretary of the Party Committee and Vice Chairman of New Hope Group Co., Ltd., Director of Huarong Chemical Co., Ltd., and Director of Sichuan Xinwang Bank Co., Ltd. He is also a Deputy to the 14th Sichuan Provincial People's Congress, a member of the Economic Affairs Committee of the Provincial People's Congress, Secretary of the Party Committee and Secretary-General of the General Association of Sichuan Entrepreneurs, Vice President of the China Youth Entrepreneurs Association, and President of the Sichuan Youth Entrepreneurs Association.

Li Jianxiong, male, holds the title of Senior Economist. He is Vice Chairman of the Agriculture and Forestry Committee and Vice Chairman of the Youth Working Committee of the Jiusan Society Central Committee. He holds an EMBA from Peking University, a PhD in Economics from the Chinese Academy of Social Sciences, and completed postdoctoral research at Renmin University of China. He currently serves as Director of the Company, Executive Vice President and Chief Operating Officer of New Hope Group Co.. Ltd., Chairman of Nanfang Hope Industry Co.. Ltd., Director of Huarong Chemical Co.. Ltd., Director of Xingyuan Environment Technology Co., Ltd., and Director of Shenzhen Feima International Supply Chain Co., Ltd. He has received numerous awards, including the 25th Qiu Shi Outstanding Young Talent Achievement Award for Technological Transformation from the China Association for Science and Technology, the Special Prize of the National Science and Technology Progress Award for Commerce from the China General Chamber of Commerce, the Sichuan Innovative Entrepreneur Award, and was recognized as a High-level Innovative Talent under the “Chengdu Drifter Program" and honored with the "Zhuge

Elite" title. He also serves as Vice President of the China Association of Agricultural and Rural Law, Director of the Beijing Jingwa Agricultural Science and Technology Innovation Center, and Expert of the Beijing Pinggu District Agricultural Science and Technology Innovation Demonstration Zone.

Yang Fang, female, Chinese nationality, holds no permanent residency abroad. She is a member of the China National Democratic Construction Association. She holds a Bachelor's degree in Financial Accounting and a Master's degree in Business Administration, and is a Chinese CPA, a Chinese CTA, and holds a non-practicing membership with CPA Australia. She currently serves as Director of the Company, Member of the Leadership Team and Chief Financial Officer of New Hope Group Co., Ltd., Chairman of New Hope Finance Co., Ltd., and Director of New Hope Wuxin Industrial Group Co., Ltd. Previously, she served as Partner at KPMG Huazhen Certified Public Accountants (Special General Partnership), Chief Accountant of China National BlueStar (Group) Co., Ltd., Director of Bluestar Adisseo Co., Ltd., Supervisor of New Hope Liuhe Co., Ltd., Chair of the Board of Supervisors of New Hope Dairy Co., Ltd., and Director of Xingyuan Environment Technology Co., Ltd. She is a member of the China Finance 30 Forum, an Industry Mentor for the Master of Accounting (CFO Track) program at Tsinghua University, and has received the 15th "China CFO of the Year 2019" award from the Ministry of Finance, the 9th "China International Financial Leader of the Year 2018" award, etc.

Tao Yuling, male, holds a Bachelor's degree in Freshwater Fisheries from Huazhong Agricultural University and an EMBA. He previously served as General Manager of the Beijing-Tianjin-Hebei Region, President of the North China Regional Corporation, President of the Shandong Operational Special Zone, President of the Poultry BU, President of the Pig Business Xinhai Division, President of the Pig BG, and Vice President of the Company. He currently serves as Director and President of the Company.

Pang Yundong, male, holds an EMBA. He previously served in various financial roles including Regional Financial Manager, Financial Director for the Feed Business Region, Deputy General Manager of the Finance Department of Shandong Liuhe Group, Financial Director of the North Central Center, Financial Director of the North China Regional Corporation, Deputy General Manager of the Finance Department of the Company, and General Manager of the Rural Financial Guarantee Division. He also previously served as Supervisor of the Company. He currently serves as Director of the Company, General Manager of the Supply Chain Management Department of Feed BU, and General Manager of Internal Control of Feed BU.

Independent directors:

Wang Jiafen, female, Chinese nationality, holds no permanent residency abroad. She has a Master's degree and is a member of the Communist Party of China. She holds the title of Senior Economist and is a recipient of the National "May 1st" Labor Medal, the Shanghai "March 8th" Red Banner Pacesetter, and the Shanghai Model Worker. She previously served as Chairman and General Manager of Bright Dairy Co., Ltd., Chairman and General Manager of Shanghai Dairy (Group) Co., Ltd., Partner of GGV Capital, Vice Chairman of Ping An Trust, and Chairman of Shanghai Oriental Women's Leadership Development Center. She currently serves as an Independent Director of the Company, Supervisor of Shanghai Guanjie Enterprise Management Consulting Co., Ltd., Director of Bondex Supply Chain Management Co., Ltd., and Director of Bestore Co., Ltd.

Xie Jiayang, female, Chinese nationality, graduated from Zhongnan University of Economics and Law in 1984. She is a Chinese CPA, a Chinese CTA, and a Senior Accountant. With over 38 years of experience in financial auditing and management consulting, she has led professional services for more than 100 enterprises and multiple government projects. She previously served as General Manager Assistant of Zhonghua Certified Public Accountants, Managing Partner of Pan-China Certified Public Accountants, Managing Partner of Deloitte Touche Tohmatsu Certified Public Accountants, and Managing Partner of Ernst & Young Hua Ming Certified Public Accountants. She currently serves as an Independent Director of the Company.

Li Tiantian, female, Chinese nationality, has over 20 years of professional experience in corporate management. She previously served as General Manager of Beijing Renhuite Zhiye Consulting Co., Ltd. and General Manager of Beijing Zhongruanyan Management Consulting Co., Ltd. She currently serves as an Independent Director of the Company, and Director & General Manager of Beijing Siwei Zaowu Information Technology Co., Ltd.

Senior management:

Yan Qiubo, male, holds a Bachelor's degree in Veterinary Medicine from China Agricultural University and an EMBA from West Coast University. He previously served as General Manager of the Guizhou Region of Feed BU, Commander of the Hubei Theater of Pig BU Xinliu Division, and Head of Feed BU. He currently serves as Vice President of the Company and Chairman of the Guizhou Feed Industry Association.

Wang Weiyong, male, holds a Bachelor's degree from Renmin University of China. He previously served as Human Resources Director for Lenovo Group's China region, Human Resources Director of New Hope Group, Vice President and Human Resources Director of the Company, and Senior Vice President of Joyvio Group. He currently serves as Vice President and Human Resources Director of the Company.

Li Shuang, male, holds a Bachelor's degree from Sichuan University. He previously served as General Manager of Ningbo Company of New Hope Group's Real Estate Division, General Manager of the Operations Management Center of the Real Estate Division, and Director of Engineering and Equipment Operations of the Company. He currently serves as Vice President and Director of Engineering and Equipment Operations of the Company.

Shi Han, female, of Han ethnicity, graduated from Peking University. She previously worked at KPMG and the Finance Department of China Investment Corporation. She served as Deputy Director of the Finance Department of New Hope Group, Chief Financial Officer and Chief Operating Officer of Caogen Zhiben Group, and Senior Assistant to the Chairman and Director of the Strategy and Operations Department of the Company. She currently serves as Chief Financial Officer of the Company.

Zhao Liang, male, holds a Bachelor's degree in Economics in National Economic Management from Renmin University of China and a Master's degree in Finance from Sun Yat-sen University. He previously served as Secretary to the President's Office, Public Relations Manager, and Intermediate Manager of the Corporate Banking Department of Bank of China Guangdong Branch; Senior Financing Manager of the Treasury Department of Ping An Insurance (Group) Company of China, Ltd., and Director of the Capital Management Office of Ping An Trust Co., Ltd.; General Manager of the Treasury Department of China Qinfa Group Limited; General Manager of Shenzhen Branch of Dongxing Securities Co., Ltd.; and Managing Director of Guangzhou City Development Investment Fund Management Co., Ltd. He currently serves as Secretary to the Board of Directors of the Company and General Manager of Guangdong New Hope New Agriculture Equity Investment Fund Management Co., Ltd.

Wang Pusong, male, holds a Bachelor's degree in Economics from Wuhan University, a Master's degree in Economics from Xiamen University, and a Doctorate in Management from Xiamen University. He previously worked at the Tax Policy Division of Ezhou Municipal Taxation Bureau in Hubei province and the Investment Banking Department of China Eagle Securities. He also served as Finance Manager of China Silk Shenzhen Import & Export Corporation, Financial Director of the Breeding Division of Shandong New Hope Liuhe Group, and General Manager of the Finance Department and Chief Accountant of the Company. He currently serves as Director of Investment Development of the Company

Notes on the situation where the controlling shareholder and the actual controller also serve as Chairman and General Manager of the listed company

□Applicable ^Not applicable

Incumbencies with shareholder entities

^Applicable □Not applicable

Incumbencies with other entities

^Applicable □Not applicable

Penalties imposed by securities regulators in the past three years on incumbent directors and senior management of the Company and those separated within the reporting period ^Applicable □Not applicable

Mr. Li Jianxiong, a Director of the Company, was subject to warning letters issued by the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission in October 2023 for matters not related to the Company, and was also subject to public criticism by the Shenzhen Stock Exchange in April 2024.

3. Compensation of directors and senior management

Decision-making process, determination basis and actual payment of compensations for directors and senior management

The Compensation and Evaluation Committee determines the remuneration of the Company's senior management based on their respective areas of responsibility, main duties, business innovation capabilities, work performance, as well as the Company's Administrative Measures for Employee Compensation and relevant regulations and provisions of the Compensation and Evaluation Committee.

As of December 31, 2025, the total amount of pretax remuneration received by directors and senior management from the Company was 12.2243 million yuan. Ms. Liu Chang, Chairman of the Company, voluntarily gave up a portion of her salary in 2024, and only received a pretax remuneration of 192,300 yuan. This resulted in a growth in her remuneration in 2025 compared to 2024, but it still remained within the normal salary range for personnel of the same industry and type.

Compensation for directors and senior management of the Company within the reporting period

Unit: 10,000 yuan

Other notes

□Applicable ^Not applicable

V. Performance of duties by directors within the reporting period

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

Notes on failure to attend board meetings in person for consecutive two times

N/A

2. Objections raised by directors to matters related to the Company

Whether directors raised objections to matters related to the Company

□Yes ^No

Directors did not raise any objections to matters related to the Company within the reporting period.

3. Other notes on the performance of duties by directors

Whether directors’ suggestions regarding the Company were adopted

^Yes □No

Notes on directors’ suggestions regarding the Company adopted or not adopted

During the reporting period, directors of the Company acted dutifully and diligently, offered advices and suggestions, actively participated in meetings of specialized committees of the Board of Directors, board meetings and shareholders’ meetings, performed their rights, duties and obligations conferred by the Company Law, the Securities Law, the Shenzhen Stock Exchange Listing Rules and the Articles of Association of the Company, strictly complied with national laws, regulations, decrees, ordinances and rules and raised numerous specialized and constructive opinions in terms of business operations, development strategy and major decisions, all of which were adopted by the Company.

VI. Specialized committees of the Board of Directors within the reporting period

VII. Performance of the Audit Committee

Whether the Audit Committee found any risks to the Company in its supervisory activities during the reporting period □Yes ^No

The Audit Committee had no objections to supervised matters within the reporting period.

VIII. Employees

1. Number, composition of specialties and educational background of employees

2. Pay policy

(1) Front-line production personnel follows the piece-rate work system, marketing personnel follows the sales-linked compensation system, and hourly workers follow the job grade wage and performance appraisal wage system.

(2) Employee compensation is adjusted by first determining the overall ratio of compensation adjustment of the Company and total amount of compensation adjustment based on the net profit growth and per capita efficiency growth of the Company and employee compensation levels of peer companies, government wage guidelines and consumer price rise index published by the statistical department and then appraising each business unit and individual employee level by level.

(3) Overtime pay and various holiday pays are subject to the national regulations.

(4) The Company procures and pays corresponding insurance coverage for its employees according to the Labor Contract Law of the People’s Republic of China and its related rules and regulations.

3. Training programs

In 2025, adhering to the long-termism concept of talent cultivation and with the goal of demand-based customization and precise empowerment, the Company improved its employee training system. Staff training and development efforts were focused on the following three aspects.

First, build a management and operation cadre team to enhance the leadership and operation capabilities of on-the-job and reserve cadres, and cultivate and reserve outstanding talents for cadres at all levels of the Company through talent cultivation programs such as EMBA Program, the Key Force Training Program, the Global Key Force Training Program, the Inclusion Program, the Hope Program, and the New Bee Training Camp.

Second, build a key professional line capability system to organize and carry out specialized training classes for key professional positions such as product technology, quality control, procurement, aquatic product marketing, and veterinary medicine, and develop professional courses and conduct training based on expert experiences gathered to enhance professional capabilities and build long-term competitiveness.

At last, organize culture and experience inheritance to step up efforts on strengthening the construction of the talent cultivation foundation based on digital platforms and internal trainer resources, including the establishment of the curriculum system, the training of internal trainers, the construction of digital platforms, and the knowledge and skills database, to create a learning organization atmosphere similar to that of a school.

New Bee Training Camp: in 2025, the Company continued to implement the full-cycle New Bee training strategy focused on intensive learning + tracking and coaching + job experience, completing offline or online training for 625 new employees by August. This helped new employees understand the overall business situation, integrate into the corporate culture, accelerate the establishment of professional values, and shorten their competency cycle. Through training, the corporate culture and spiritua concepts were conveyed, and the belief that employees are willing to develop with the organization for the long term was established. Through regional training organization, new employees' understanding of regional strategic business was deepened, and their sense of collective belonging and organizational atmosphere of peer assistance were strengthened, enabling them to take on the "first baton" of the workplace successfully.

New Bee Momentum Camp: in August 2025, the Company selected 38 high-potential graduates to participate in a two-year accelerated training program. The program adopts the core training strategy of "online courses + offline training + dual mentors guidance + customized rotation", focusing on deepening business cognition, honing professional capabilities, and shaping leadership potential. The aim is to help trainees quickly integrate and shorten their growth cycle, laying a solid foundation for their future growth into business backbone or middle-level managers.

Key Force Training Program: in 2025, the Company continued to organize training courses for key forces in the feed business and pig farming business. Focusing on "how to be a good general manager with the mindset and comprehensive management capabilities as a head", the program aimed to help professional line managers become qualified comprehensive business managers.

The program strengthens the construction of a general manager talent pool, continuously reserving, cultivating, and delivering core business talents for the Company's operations.

Through two offline training sessions, online courses, practical tasks, and benchmarking studies of the Key Force Training Program for Feed BU (Batch 2), a total of 43 high-potential talents were selected globally, and they completed a 6-month empowerment program. The overall graduation rate reached 34.9% (15 participants). Through mentor coaching, offline training, business case studies, and practical tasks of the Key Force Training Program for Pig BG (Batch 1), 41 participants completed an 8- month empowerment program. The overall graduation rate reached 75.6% (31 participants).

Quality Control Manager Elite Program: this is a talent development program for reserve feed quality control managers. Through online expert courses, offline experiential teaching (including practical tasks and on-site mentoring), multi-scenari management seminars, and stage-based assessments, the program enhances participants' professional quality control capabilities while strengthening their awareness of professional and team management, building long-term competitiveness. The program had 41 participants, with a pass rate of 90%

Inclusion Program: in September 2025, the Company launched the Inclusion Program. The program is dedicated to building a career development and exchange platform for domestic and international talents. Through open recruitment and selection across all channels, it attracted 133 employee applicants. After interviews and evaluations, 10 participants were finally selected for the first session. The program organized a one-day intensive training in Chengdu and a three-day field research study in Vietnam. Through classroom lectures, company visits, market and customer visits, and executive interactions, the program helped participants broaden their horizons and enhance their thinking. During the program, participants interested in overseas development were matched with corresponding positions, continuously strengthening internal promotion and influence building, and promoting the orderly flow of talents domestically and internationally

Aquatic Elite Special Training Class: in June 2025, the Overseas Aquatic Elite Special Training Class was officially launched in Vinh Long, Vietnam, with 34 participants. More than ten experts from overseas operations, feed business, and relevant fields were invited to give on-site lectures. Sessions also included excellent case study sharing, thematic discussions, and on-site observations. The program developed and accumulated 13 courses. It has established a cultivation and improvement mechanism centered on the "general manager + sales + technology" model, enabling mutual learning, promoting exchange between domestic and international aquatic feed operations, and disseminating excellent practices, continuously driving the specialization of the aquatic feed business.

EMBA Program:

Targeting the Company's high-performing, high-potential talent pool, the EMBA Program aims to supplement academic credentials and enhance capabilities, and is integrated into the Company's leadership development system. It systematically builds mid-to-senior level managers' understanding of the essential principles of business acumen and leadership, elevating their thinking, broadening their perspectives, and serving business needs. Its goal is to be an EMBA program that best understands the agricultural and animal husbandry industry, cultivating senior managers for China's agricultural and food industry who possess systematic thinking, outstanding leadership, and an innovative spirit

In 2025, the program delivered two sessions. Through classroom training, benchmarking study tours, and team building activities, two learning sessions were conducted. The two cohorts engaged in practical thesis research and writing, as well as thesis defense and degree application work. A total of 85 mid-to-senior level managers were cultivated, with a participant satisfaction rate exceeding 92%.

4. Labor service outsourcing

□Applicable ^Not applicable

IX. Profit distribution and share capital increase with capital reserve

Profit distribution policy within the reporting period, especially the formulation, execution or adjustment of cash dividend policy □Applicable ^Not applicable

The Company made profits within the reporting period, and profit of the parent company available for distribution to shareholders was positive, but no plan for cash dividend distribution was brought forward.

□Applicable ^Not applicable

Profit distribution and share capital increase through capital reserve conversion within this reporting period

□Applicable ^Not applicable

The Company plans not to distribute cash dividends or allot bonus shares or increase its share capital with capital reserve in the year.

X. Implementation of equity incentive plans, employee stock ownership plans or other employee incentives

^Applicable □Not applicable

1. Equity incentives

(1) At the 1st extraordinary general meeting of 2025, the Proposal on Terminating the Restricted Stock Incentive Plan 2022 was approved. The Company, taking into account the current industry and market conditions and other factors, found that continuing to implement the Restricted Stock Incentive Plan 2022 was no longer able to achieve the expected incentive goals and effects. To fully implement effective incentives for employees and in light of the willingness of the incentive recipients and the Company's future development plan, the Board of Directors, after careful deliberation, decided to terminate the Restricted Stock Incentive Plan 2022.

(2) The 41st meeting of the 9th Board of Directors, the 27th meeting of the 9th Board of Supervisors and the 1st extraordinary general meeting deliberated and approved the Proposal on Repurchasing and Canceling Some Restricted Stocks under the Restricted Stock Incentive Plan 2022. As the conditions for lifting sales restrictions in the second lifting period for the initial grant and the first lifting period for the reserved grant of restricted stocks under the Restricted Stock Incentive Plan 2022 have been fulfilled, the total number of shares that can be released from sales restrictions is 7.7828 million. The Company should repurchase and cancel a total of 4.1492 million restricted stocks that have been granted to the incentive recipients but have not been released from the sales restrictions; due to the resignation of 55 incentive recipients, 2.149 million restricted stocks that they have been granted but have not yet been released from sales restrictions should be repurchased and canceled; furthermore, as the Company terminated the Restricted Stock Incentive Plan 2022, 11.932 million restricted stocks should be repurchased and canceled. In summary, a total of 18.2302 million restricted stocks should be repurchased and canceled. The Company repurchased and canceled 23.3722 million restricted stocks on July 3, 2025.

Equity incentives granted to directors and senior management

□Applicable ^Not applicable

Assessment mechanism and incentives for senior management

According to the policies related to performance assessment and compensation incentive systems for senior management,

the performance assessment of senior management consists of short-term contribution assessment and long-term contribution assessment. Directors and senior management of the Company present their reports to the Remuneration and Appraisal Committee and conduct self-evaluations. The Remuneration and Appraisal Committee conducts performance evaluations of the directors and senior management based on the following dimensions:

(1) Short-term contributions:

① The achievement of the Company's key financial indicators and business goals;

② The performance and achievement of KPIs of the units under the charge of senior management personnel.

(2) Long-term contributions:

① Construction of organizational cultural competence improvement of the Company undertaken by senior management;

② Construction of the Company's governance and internal control system;

③ Senior management personnel’s innovation ability and leadership skills .

2. Implementation of employee stock ownership plans

^Applicable □Not applicable

Any and all ESOPs valid within the reporting period

Shareholding of directors and senior management under the ESOP within the reporting period

Change of asset management organization within the reporting period

□Applicable ^Not applicable

Change in equity within the reporting period due to holder’s disposal of the shares

□Applicable ^Not applicable

Exercise of shareholders’ rights within the reporting period

No exercise of shareholders’ rights under the ESOP within the reporting period.

Other circumstances and notes to the ESOP within the reporting period

□Applicable ^Not applicable

Change of members of ESOP Management Committee

□Applicable ^Not applicable

Financial impact of the ESOPs on the listed company within the reporting period and relevant accounting treatment

^Applicable □Not applicable

The ESOP granted by the Company in 2024 and existing in the current period was accounted for in accordance with the Accounting Standards for Business Enterprises No. 18 - Share-based Payment The financial impact of the ESOP on the Company is detailed in "Section 8 Financial Report (XV) Share-based payments”. The accounting policies and accounting treatments are detailed in "Section 8 Financial Report (V) Significant accounting policies and accounting estimates 31. Share-based payment".

Termination of ESOPs within the reporting period

□Applicable ^Not applicable

Other notes:

None

3. Other employee incentives

□Applicable ^Not applicable

XI. Construction and implementation of internal control system within the reporting period

1. Construction and implementation of internal control system

Within the reporting period, the Company updated and improved its internal control system from time to time in accordance with the Company Law, the Corporate Governance Standards for Listed Companies, the Basic Standards for Internal Control of Enterprises and other laws and regulations and rules in light of its reality, industry characteristics and management needs, formulating a system of internal control policies that runs through all levels and parts of its business operations, and constantly supplemented, modified and improved them for strict execution. The Audit Committee expresses evaluation opinions on the Company’s internal control. The Company has established a rather comprehensive system of internal control polices and could effectively execute them. The Company’s self-evaluation report on internal control truly and objectively reflects the construction and operation of its internal control policies.

2. Details of significant defects in internal control found during the reporting period

□Yes ^No

XII. Management and control of the Company over its subsidiaries within the reporting period

Whether there are abnormal circumstances in the management and control of the subsidiaries.

□Yes ^No

XIII. Internal control evaluation report and internal control audit report

1. Internal control evaluation report

2. Internal control audit report

^Applicable □Not applicable

Whether the accounting firm issued any non-standard opinion internal control audit report

□Yes ^No

Whether the internal control audit report issued by the accounting firm is consistent with the opinion in the self-evaluation report of the Board of Directors

^Yes □No

Whether there is/was modified audit opinions regarding internal control during the reporting period or in the previous year □Yes ^No

XIV. Rectification of issues identified in self-examination under the Special Action for Corporate Governance of Listed Companies

In accordance with the Notice on Special Action for Corporate Governance (CZJGS (2020) No. 33) issued by Sichuan Regulatory Bureau of the CSRC, the Company completed the self-examination under the special action for corporate governance of listed companies in 2021, and rectified the issues identified during self-examination. In recent years, the Company has continued to implement and improve all respects of internal control in accordance with relevant regulations and requirements o regulatory authorities, and has continuously enhanced its level of corporate governance.

XV. Environmental information disclosure.

Whether the listed company and its major subsidiaries fall within the list of enterprises that are legally required to disclose environmental information

^Yes □No

XVI. Social responsibilities

Refer to the 2025 Sustainability Report published by the Company on www.cninfo.com.cn on April 29, 2026 for details. This report was compiled in accordance with the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report and with reference to the GRI Standards 2021. Relevant indexes are as follows:

XVII. Details about consolidating and expanding the achievements of poverty alleviation and rural revitalization

(I) Rural revitalization

The Company has always embedded the principle of “serving rural communities and caring for people’s livelihoods” into its corporate DNA. Remaining true to its original aspirations in the agriculture and animal husbandry industry, and grounded in the realities of rural development and the core needs of farmers, the Company has increased investment in rural areas and innovated models and measures to support and benefit agriculture. The focus has shifted from individual project assistance to empowering the entire industrial chain and talent development, making positive contributions to promoting coordinated urban-rural and regional development, consolidating poverty alleviation achievements, and effectively linking them to rural revitalization.

During the reporting period, the Company was honored by the Sichuan Association of Feed Industry as a “Model Unit in Promoting Rural Revitalization” and an “Outstanding Unit in Reducing Grain Consumption for Feed Production”. Its rural revitalization cases were included in the China Association for Public Companies’ Sustainable Development Best Practice Cases, the China Animal Agriculture Association’s Outstanding Cases of Corporate Social Responsibility Performance in the Animal Husbandry Industry, and the China Non-staple Food Circulation Association’s 2025 Excellent Cases of Corporate Socia Responsibility Performance.

(1) Cultivating new agricultural talent, with online technical services reaching over 100,000 persons

Based on the Group’s 100,000 Green Collar New Farmers Training Program, the Company offered a number of high-quality training programs through a variety of online and offline teaching scenarios tailored to farmers’ needs and different agricultura development stages. To contribute to cultivating leaders of rural collective economies, the fifth session of the Rural Revitalization “Village Head Program” deepened its “Seed Plan” partnering with central media and industry experts to conduct in-depth field research and empowerment activities in over ten participant villages. This systematically deepens the shift from “short-term intensive learning” to “long-term ecosystem empowerment”. By the end of 2025, the Village Head Program had received applications from over 4,000 village officials nationwide, trained more than 500 village leaders, and positively influenced over 3,000 villages, injecting significant talent vitality into rural governance.

In 2025, the Company’s pig business free-range management team provided professional technical support and training to over 2,900 contract farmers and family farm owners, lowering technical barriers and production risks in breeding, enhancing farming efficiency, and effectively helping farmers increase income. The feed business, leveraging its premix business and cooperation with breeding technology experts and benchmark farmers, used live streaming on e-commerce platforms to deliver technical explanations and case study sharing, helping farmers improve their comprehensive management and disease prevention capabilities. During the reporting period, a total of 6,920 farmers were newly enrolled in the service, and the cumulative number o registered users on the online platform exceeded 100,000.

(2) Supporting micro and small enterprise growth and serving the financing needs of industrial chain clients

The Company integrates resources from banks, insurance companies, and other parties. Leveraging its advantages across the agricultural and pastoral industry chain, it has innovated a supply chain finance model centered on guarantees. With a specialized team covering 29 provinces and cities nationwide, it provides financing guarantee services to upstream and downstream clients on the industrial chain, addressing the difficulties and high costs of financing for agriculture-related clients. By the end of 2025, the Company had served 222,600 clients cumulatively, facilitating financing amounting to 82.9 billion yuan, demonstrating tangible effectiveness in supporting agriculture and benefiting farmers.

Inclusive guarantee

The Company is deeply engaged in the inclusive guarantee sector, actively expanding relationships with high-quality banking partners and exploring potential for bank-enterprise cooperation. It has established strong partnerships with state-owned banks joint-stock banks, city commercial banks, and foreign banks. Leveraging its professional risk management strengths, the inclusive guarantee unit has become a strategic partner for major banks in agricultural finance. By the end of 2025, the Company had partnered with 18 banks, securing a cumulative credit line of 10.7 billion yuan.

Industry-finance platform

The Company built a 2.0 supply chain financial services platform, establishing an inclusive agricultural industry chain finance model based on “data layer + product layer + risk control layer + scenario layer”, further expanding service coverage and improving service quality. After the inclusive guarantee unit gained access to the People’s Bank of China’s second-generation credit reference system and successfully queried its first client credit report in November 2024, the online contract signing function was officially launched in 2025. This has significantly improved client convenience in signing, enhanced business processing efficiency, and strengthened the standardization of contract management.

(3) Boosting industrial revitalization, with total contracted farming fees of over 2.03 billion yuan annually

Adhering to its mission “to benefit producers and bring well-being to consumers”, and relying on its efficient and intensive management system and comprehensive industrial chain resources, the Company collaborates with farmers to explore a mutually beneficial and win-win cooperative pig farming model and build a community of shared future across the entire industrial chain.

The Company’s pig business free-range management division adopts a model of “six unifications by the Company, three no burdens for the farm” to establish a full industrial chain service system, enhancing farmer productivity through standardized whole-process management. During the reporting period, the Company partnered with 2,900 farmers across 21 provinces nationwide, forming collaborative development communities that achieve deep complementary advantages and facilitate the integration of smallholder farmers into modern agricultural development patterns. Through this tightly-knit benefit-sharing mechanism, the Company not only creates diverse employment opportunities and increases stable income for farmers but also strengthens the self-development capacity (“blood-producing” ability) of farmers and village collectives. In 2025, the total contracted farming fee settled for finished hogs under the “company + farmer” model exceeded 2.03 billion yuan, with an average profit of over 960,000 yuan per farmer household.

From its participation in the “Guangcai Cause” in 1994, to joining the fight against poverty in 2017, and participating in targeted support for underdeveloped counties in 2023, the Company has consistently leveraged its industrial characteristics and advantages to continuously provides assistance and promotes development for underdeveloped regions. In December 2025, the Company entered into partnerships with the Central SOEs Industrial Investment Fund for Rural Area Co., Ltd. and the Underdeveloped Region Industrial Development Fund Co., Ltd. It will actively cultivate industrial projects suitable for family operations in 20 designated targeted poverty alleviation counties nationwide, continuously nurturing and enabling new farmers to find employment, start businesses, and achieve sustained income growth.

(4) Overseas poverty alleviation training, contributing Chinese solutions to the global poverty reduction initiative

China has lifted all 800 million of its poor population out of poverty, historically solving absolute poverty and providing a reference and impetus for global poverty reduction efforts. As a multinational agricultural enterprise, the Company has also brought its accumulated experience in poverty alleviation to several host countries overseas.

In Bangladesh, the Company partnered with the Asian Development Bank to implement a public welfare training program for female farmers. Two phases have been completed from 2023 to 2025, cumulatively training over 9,000 female housewives, effectively promoting local women’s employment, helping them develop farming, and improving their incomes. In Egypt, the Company, together with the Chinese Embassy in Egypt and the Egyptian National Alliance for Civil Development Work, launched the Sino-Egyptian “New Hope” breeding technology training in Al Minūfīyah in 2025. This program provided systematic technical training and professional guidance to 100 rural women from two villages, achieving significant economic and socia benefits.

(II) Sustainable development and environmental protection practices

The Company actively responds to the national "dual carbon" goals, vigorously promoting energy conservation and carbon reduction through several initiatives, including the transition to clean energy, implementing grain-saving programs, promoting biological carbon sequestration, and facilitating carbon trading. It also continuously focuses on emerging areas within the lowcarbon economic transition, develops and pilots new technologies, concentrates on sustainable agriculture, enhances resilience, and promotes sustainable growth.

(1) Transition to clean energy

The Company actively promotes the diversified utilization of clean energy sources such as photovoltaic and biogas, optimizing the energy mix, reducing fossil fuel use, and fulfilling emission reduction responsibilities. In 2025, the Company added 4.42 megawatts of grid-connected photovoltaic capacity, 0.26 megawatt-hours of energy storage capacity, and a total of 19.64 megawatts of operational photovoltaic projects. Additionally, there were 27.57 megawatts of photovoltaic capacity under construction and 4.20 megawatt-hours of energy storage capacity. In 2025, a total of 15.6028 million kilowatt-hours of clean electricity was provided, reducing GHG emissions by 8,278.85 tons of CO2 equivalent. At the same time, all areas of Pig BG vigorously developed water resource recycling models such as recycling of wastewater, using reclaimed water for irrigation, and returning manure to the fields. The total amount of reclaimed water for irrigation in 2025 was 16.322 million tons

(2) Implementing grain-saving programs

Closely following the national strategies for food security and leveraging its advantages as a globally leading feed enterprise, the Company collaborated with multiple research entities to develop comprehensive grain-saving and efficiency-enhancing solutions. Through industrial application, these solutions effectively save grain and reduce farming costs, contributing to nationa food security and promoting sustainable agricultural development.

During the reporting period, the Company continuously developed new grain-saving technologies and solutions. Notably, its project “Technology and Application of Porcine Intestinal Microbial Function and Targeted Nutritional Regulation” won the First Prize for Scientific and Technological Progress in Sichuan Province; the project “Key Technology Innovation and Application for High-Value Utilization of Feed Resources” won the Second Prize for Scientific and Technological Progress in Qingdao City.

During the reporting period, the application of the “liquid fermented swine feed” in multiple pig farms significantly improved feed intake, daily weight gain, and the feed conversion ratio, saving a cumulative equivalent of 611,000 tons of soybeans. Through breeding improvements that shortened the days to market, the pig business saved 37,400 tons of grain. Optimization of self-use finishing feed formulas reduced soybean meal consumption to 5.3%, saving a total of 100,000 tons of feed grain across the sector. Overall, through formula optimization and scientific feeding, the Company saved a total of 748,400 tons of grain across all sectors in 2025.

(3) Promoting biological carbon sequestration

The Pig BG has planted winter wheat, corn and other grain crops on 120,000 mu of land designated for waste absorption (including 50,000 mu of farmland). On the remaining forest land, it has planted apples, mandarin oranges and other fruit trees. I also ferments and returns the manure to the fields, achieving carbon sequestration in plants and carbon storage in soil. Innovating in biogas slurry/reclaimed water return technology, the Company piloted high-ridge planting methods in parts of North China in 2025. The 400-mu pilot project in Pizhou yielded 432.5kg/mu of wheat, the 300-mu Zhuyu pilot project yielded 493.5kg/mu, and the Qianhuayuan project, using a mixed high-ridge and flat planting method, achieved a yield of 622.7kg/mu on high ridges

During the reporting period, through the integrated crop-livestock farming model, the Company produced 98,800 tons of fermented manure and harvested 1.2 million kilograms of fresh fruits and vegetables. The annual biological carbon sequestration amounted to approximately 157,500t of CO2 equivalent.

(4) Facilitating carbon trading

By combining technological and institutional innovation and leveraging the land designated for waste absorption from its pig operations, the Company conducts carbon accounting and emission reduction projects in the breeding industry following the Verified Carbon Standard (VCS). It actively promotes biological carbon sequestration and carbon asset development, achieving ecological, environmental, and economic benefits simultaneously

Since signing a Memorandum of Understanding for a GHG emission reduction project with a Volkswagen Group subsidiary in September 2023, the Company has cumulatively provided Volkswagen with carbon credits for two phases totaling 282,500 tons. In 2025 alone, 100,000 tons of carbon credits were provided. By the end of 2025, the Company had signed agreements for 10 carbon emission reduction development projects, resulting in the issuance of a total of 925,100 tons of carbon credits, of which 590,500 tons have been sold.

Section 5 Important Matters

I. Fulfillment of commitments

1. Commitments fulfilled within the reporting period and not yet fulfilled beyond the time limit as at the end of the reporting period by actual controller, shareholder, related party, acquirer and corporate and other commitment-related parties of the Company

^Applicable □Not applicable

Notes on the achievement of the original profit forecast for the assets or projects and the reasons behind it, If the Company's assets or projects have a profit forecast and the reporting period is still within the period of the profit forecast

□Applicable ^Not applicable

3. The Company's commitments related to performance

□Applicable ^Not applicable

II. Occupation of non-operating funds of the listed company by the controlling shareholder or its related parties

□Applicable ^Not applicable

The Company had no occupation of non-operating funds of the listed company by the controlling shareholder or its related parties during the reporting period.

III. Illegal external guarantees

□Applicable ^Not applicable

The Company had no illegal external guarantees during the reporting period.

VI. Notes of the Board of Directors on details related to the most recent “modified audit report”

□Applicable ^Not applicable

V. Notes of the Board of Directors and independent directors (if any) on the “modified audit report” issued by the accounting firm for this reporting period

□Applicable ^Not applicable

VI. Notes on changes in accounting policies or accounting estimates or correction of major accounting error compared with the financial report of the previous year

□Applicable ^Not applicable

The company had no change in accounting policies or accounting estimates or correction of major accounting error within the reporting period.

VII. Notes on changes in the scope of consolidated statements compared with the financial report of the previous year

^Applicable □Not applicable

1. The entities added to the consolidated statements of this year include:

Hubei Xinsheng Houpu Technology Co., Ltd., Guang’an New Hope Liuhe Livestock Development Co., Ltd., Qingdao Xinjiali Farming Technology Co., Ltd., Hainan New Hope Liuhe Farming Technology Co., Ltd., New Hope Tongnai Nutrition Technology Co., Ltd., PT NHSP Animal Nutrition Indonesia, PT New Hope Animal Technology Indonesia, Linyi New Hope Hengli Farming Co., Ltd., Xiantao New Hope Liuhe Feed Co., Ltd., Fengcheng New Hope Haofeng Feed Co., Ltd., Lianyungang New Hope Liuhe Feed Co., Ltd., Sheyang New Hope Biotechnology Co., Ltd., Xinliu Chuanyi (Fujian) Farming Development Co., Ltd., Lingbao New Hope Feed Co., Ltd., Emeishan New Hope Feed Co., Ltd., Taizhou New Hope Biotechnology Co., Ltd., and Xinhe Lanka International Trading Pte. Ltd., all established in 2025 and included in the consolidated financial statements as of the date of their establishment.

2. The entities removed from the consolidated statements this year include:

Chaoyang New Hope Farming Technology Co., Ltd., Handan Henong Livestock and Poultry Breeding Co., Ltd., Wei County New Hope Feed Co., Ltd., Fuxin Liuhe Breeding Service Co., Ltd., Sichuan New Hope Liuhe Xueyu Tianlu Supply Chain Management Co., Ltd., Xuzhou Jinfeng Liuhe Feed Co., Ltd., Guangyuan New Hope Liuhe Farming Technology Co., Ltd., Bayannur New Hope Liuhe Feed Technology Co., Ltd., Meitan New Hope Agricultural Technology Co., Ltd., Laoling Liuhe Yuexin Feed Co., Ltd., Changzhi Shuanglong Food Co., Ltd., Shenyang New Hope Kinghey Food Co., Ltd., Wulian Xinhao Breeding Co., Ltd., Zhucheng Xinhao Farming Technology Co., Ltd., Quyang Xinhao Farming Co., Ltd., Nanhe County Xinhao

Farming Technology Co., Ltd., Zhangwu New Hope Liuhe Farming Co., Ltd., Liaoning Jinguan Farming Co., Ltd., Kangping Xinwang Liuhe Farming Co., Ltd., Yi County Jinguan Farming Co., Ltd., Heishan County Jincheng Farming Co., Ltd., Sishui New Hope Yuwang Technology mathrm C o., Ltd., Shaoguan Xinyue Farming Technology Co., Ltd., Shanghe Liuhe Feed Co., Ltd., Shandong Xiang'an Livestock and Poultry Breeding Co., Ltd., Chaoyang Xinwang Farming Co., Ltd., Anqiu New Hope Liuhe Farming Co., Ltd., Tianjin Yunling Enterprise Management Consulting Partnership (LP), Liaoning Xinwang Food Co., Ltd., Shaanxi Xinliu Farming Technology Co., Ltd., Dongguang County Xinhao Farming Co., Ltd., Huazhou Xinchi Animal Husbandry Co., Ltd., Lu'an Xinxi Food Co., Ltd., Yanwei Information Technology (Shanghai) Co., Ltd., Tai'an Liuhe Jili Feed Co., Ltd., Sichuan Qinrun New Material Technology Co., Ltd., Linyi Hengli Feed Co., Ltd., and Langxi Huaren Feed Co., Ltd. Among them Tai'an Liuhe Jili Feed mathrm C o. , Ltd., Sichuan Qinrun New Material Technology Co., Ltd., Linyi Hengli Feed mathrm C o.. , Ltd. and Langxi Huaren Feed mathrm C o., Ltd. were removed from the consolidated financial statements due to the disposal of the equity in these 4 companies this year; the remaining companies were all deregistered in 2025, and excluded in the consolidated financial statements.

VIII. Appointment and dismissal of accounting firm

Incumbent accounting firm

Whether another accounting firm is appointed instead in the current period

□Yes ^No

Appointment of accounting firm, financial advisor or sponsor for internal control audit

□Applicable ^Not applicable

IX. Delisting faced after disclosure of annual report

□Applicable ^Not applicable

X. Events related to bankruptcy reorganization

□Applicable ^Not applicable

No bankruptcy reorganization matters occurred in the Company during the reporting period.

XI. Major litigations and arbitrations

□Applicable ^Not applicable

The Company was not involved in major litigations or arbitrations during the reporting period.

XII. Penalties and rectifications

□Applicable ^Not applicable

The Company had no penalties or rectification during the reporting period.

XIII. Status of integrity of the Company and its controlling shareholder and actual controller

□Applicable ^Not applicable

XIV. Significant related-party transactions

1. Related-party transactions related to daily operations

^Applicable □Not applicable

2. Related-party transactions arising from acquisition or sale of assets or equity

□Applicable ^Not applicable

The Company had no related-party transactions arising from acquisition or sale of assets or equity during the reporting period.

3. Related-party transactions arising from joint external investment

□Applicable ^Not applicable

The Company had no related-party transactions arising from joint external investment during the reporting period.

4. Dealings of financial claims and debts with related parties

□Applicable ^Not applicable

The Company had no dealings of financial claims or debts with related parties during the reporting period.

5. Dealings with related finance companies

^Applicable □Not applicable

Deposit business

Loan business

Credit or other financial business

6. Dealings between finance companies controlled by the Company and related parties

□Applicable ^Not applicable

There was no deposit, loan, credit or other financial business between finance companies controlled by the Company and related parties.

7. Other significant related-party transactions

□Applicable ^Not applicable

The Company had no other significant related-party transactions during the reporting period.

XV. Significant contracts and their performance

1. Trusteeship, contracting and leasing matters

(1) Trusteeship

□Applicable ^Not applicable

The Company had no trusteeship during the reporting period.

(2) Contracting

□Applicable ^Not applicable

The Company had no contracting during the reporting period.

(3) Leasing

□Applicable ^Not applicable

The Company had no leasing during the reporting period.

2. Significant guarantees

^Applicable □Not applicable

Unit: 10,000 yuan