Meihua Holdings Group Co., Ltd.

Annual Report 2025

This is an English translation from the Annual Report 2025, in case of any inconsistency, the Chinese Version shall prevail.

Important Information

I. The Company’s board of directors, directors, and officers guarantee that the contents of this annual report are true, accurate, and complete without any false records, misleading statements, or material omissions and bear joint and several legal liability.

II. All of the Company’s directors have attended the board meeting.

III. RSM China CPA LLP (Special General Partnership) has issued an unqualified audit report for the Company.

IV. Wang Aijun, the principal of the Company, Wang Lihong, the accounting principal, and Wang Ailing, the principal of the accounting body (the accounting officer), hereby declare that they guarantee the truthfulness, accuracy, and completeness of the financial report in the annual report.

V. Profit distribution plan or capital reserve conversion plan for the Reporting Period as approved by the Board

Upon deliberation and approval of the 2nd meeting of the 11th session of the board of directors, the profit distribution plan (proposal) for 2025 is as follows: The Company plans to distribute cash dividends based on the total share capital registered on the equity distribution record date (after deducting shares in the share repurchase account). A cash dividend of 0.4279 yuan per share (inclusive of tax) will be distributed to all shareholders. As of December 31, 2025, the Company had a total share capital of 2,804,241,650 shares, based on which the estimated total cash dividend distribution amounts to 1,199,935,002.04 yuan (inclusive of tax).

The plan is yet to be submitted to the general meeting for deliberation. The amount that is actually distributed will be subject to the notification on equity distribution published by the Company. If there is any change in the Company’s total share capital before the registration date of equity distribution, the total amount to be distributed will remain unchanged, and the distribution proportion per share will be adjusted accordingly.

The total cash dividends expected to be distributed by the Company for 2025, together with 204,301,265.44 yuan used for share buyback and cancellation in 2025, represents approximately 42.80% of the net profit attributable to shareholders of the listed company for 2025.

As of the end of the reporting period, the parent company's uncovered losses and their impact on matters such as the company's dividend distribution. □Applicable √Not applicable

VI. Risk Disclosure on Forward-Looking Statements √ Applicable Not applicable

This annual report involves forward-looking descriptions such as future plans, and such statements do not constitute material commitments for investors. Investors are reminded to pay attention to the risk of investment.

VII. Any occupation of funds by the controlling shareholder or other affiliates for non-operating purposes

VIII. Any external guarantee that violates the decision-making procedures No

IX. Is it the case that more than half of the directors cannot guarantee the truthfulness, accuracy, and completeness of the annual report disclosed by the Company?

No

X. Warning of Key Risks

For the details of the risks facing the Company, refer to the “Potential Risks” part in “Section 3 Discussion and Analysis by the Management” and the “Risks Related to Financial Instruments” part in “Section 8 Financial Report”.

XI. Miscellaneous

□Applicable √Not applicable

Contents

Section 1 Definitions ....

Section 2 Company Overview and Key Financial Indicators .. ..9

Section 3 Discussion and Analysis by the Management ... ... 14

Section 4 Corporate Governance, Environmental and Social .. ....52

Section 5 Significant Matters ..... .... 82

Section 6 Share Changes and Shareholders .... ... 99

Section 7 Information on Securities .. . 108

Section 8 Financial Report ... . 108

Section 1 Definitions

I. Definitions

In this report, the terms below have the following meanings, unless the context otherwise requires:

Section 2 Company Overview and Key Financial Indicators

I. Company Information

II. Contact Person and Contact Information

III. Basic Profile

IV. Places of Information Disclosure and Report Placement

V. Company’s Stock Information

VI. Other Relevant Information

VII. Key Accounting Data and Financial Indicators for the Last Three Years

(I). Key Accounting Data

Unit: yuan Currency: RMB

(II). Key Financial Indicators

Notes to the Company’s key accounting data and financial indicators for the last three years as at the end of the Reporting Period □Applicable √Not applicable

VIII. Differences in Accounting Data under Domestic and Foreign Accounting Standards

(I). Differences in the net profit and the net profit attributable to the shareholders of the listed company in the financial report disclosed in accordance with both the international accounting standards and the Chinese accounting standards

 Applicable √Not applicable

(II). Differences in the net profit and the net profit attributable to the shareholders of the listed

company in the financial report disclosed in accordance with both the foreign accounting

standards and the Chinese accounting standards

(III). Explanation of differences between domestic and foreign accounting standards □Applicable √Not applicable

IX. Key Financial Indicators for 2025 by Quarter

Unit: Yuan Currency: RMB

Explanation of differences between the quarter-based data and the data in the disclosed periodic reports  Applicable √Not applicable

X. Non-recurring Items and Amounts

√ Applicable Not applicable

Unit: Yuan Currency: RMB

For items not listed in the Explanatory Announcement for Information Disclosure by Companies that Issue Securities to the Public No. 1 - Non-recurring Profits and Losses but considered as non-recurring profits and losses with significant amounts, as well as items defined as recurring profits and losses in the Explanatory Announcement for Information Disclosure by Companies that Issue Securities to the Public No. 1 - Non-recurring Profits and Losses, the Company should provide reasons for such classification.  Applicable √Not applicable

XI. Companies with equity incentive plans or employee stock ownership plans may choose to disclose net profit after adjusting for the impact of share-based payments.

 Applicable √Not applicable

XII. Items Measured at Fair Value

√ Applicable Not applicable

Unit: Yuan Currency: RMB

XIII. Miscellaneous

 Applicable √Not applicable

Section 3 Discussion and Analysis by the Management

I. Overview of the Company’s Businesses during the Reporting Period

Meihua Bio is a global leader in the large-scale production of amino acids using synthetic biology technologies.

During the reporting period, the products produced by the Company include:

bullet Amino acids for animal nutrition: lysine, threonine, tryptophan, feed-grade lysine, starch byproduct feed fiber, corn germ, mycoprotein, MSG residue etc.

bullet Food taste and trait improving products: glutamic acid, monosodium glutamate, Disodium 5 circ -ribonucleotide, disodium inosinate, food-grade xanthan gum, trehalose, etc.

bullet Amino acids for human nutrition and medical purposes: glutamine, proline, leucine, isoleucine, pharmaceutical valine, inosine, guanosine, adenosine, pullulan, Vitamin B2, histidine, arginine, etc.

Other products: petroleum-grade xanthan gum, bio-organic fertilizers, etc.

The Company operates under an integrated business model encompassing research and development, production, and sales. During the reporting period, there were no material changes to this model.

During the reporting period, the Company focused on advancing the acquisition and integration of projects related to Kyowa of Japan, successfully completing the entire process from asset transfer to business handover. As a result, the Company has added high-end pharmaceutical amino acid products and related businesses to its portfolio.

Explanation of the Company’s new significant non-core businesses during the reporting period  Applicable √Not applicable

II. Industry Overview

Based on the Guiding Catalogue of Key Products and Services for Strategic Emerging Industries (2016 Edition) issued by the National Development and Reform Commission (NDRC), the Company’s main products fall within the “bio-manufacturing industry of the biological industry.” Hence, the Company is in the bio-manufacturing industry.

Biomanufacturing is an advanced production method centered on industrial biotechnology. It is a manufacturing process that leverages cutting-edge biotechnologies such as genetic engineering and synthetic biology to utilize the physiological metabolic functions or catalytic capabilities of microorganisms, cells, enzymes, and other living organisms. Through industrial fermentation processes, it enables the large-scale production of target products, covering a full range of categories including food and food additives, biopharmaceuticals, bio-based materials, bulk chemicals, and energy.

Synthetic biology is a disruptive technology that integrates knowledge and techniques from multiple disciplines—including biology, engineering, and computer science—to design, modify, reconstruct, and even artificially synthesize living organisms according to engineering principles. It aims to construct artificial biological systems with specific functions to enable innovative applications in fields such as biomedicine and biomanufacturing.

(I) Industry Scale

According to a McKinsey analysis, the annual economic impact of biomanufacturing is projected to reach 1.7trillion to\3.6 trillion between 2030 and 2040, with biomanufactured products expected to account for approximately 70% of chemically manufactured goods. Boston Consulting Group (BCG) forecasts that by the end of the 21st century, biomanufacturing will be applied in one-third of the global manufacturing sector, with the potential to generate 30$ trillion in economic value.

(II) Industry Outlook

1. Global Expansion and Ongoing Policy Benefits

Synthetic biology is one of the core areas of global industrial competition, and major developed countries and regions have already incorporated it into their national strategies. The United States has made synthetic biology-related biomanufacturing a priority for research and development and has consolidated its technological advantages through the Biosecurity Act; the European Union has released a new bioeconomy strategy that clearly establishes synthetic biology as a core pillar and accelerates the commercialization of products.

China views synthetic biology as key to fostering new productive forces and achieving self-reliance in science and technology. At the national level, the government has explicitly set a goal to establish more than 20 pilot-scale biomanufacturing platforms by 2027, with a focus on bridging the “valley of death” between R&D outcomes and industrialization. At the local level, provinces and municipalities have introduced targeted support policies, focusing on the development of industrial clusters and the creation of innovation sources to provide solid support for the industry’s high-quality development.

2. AI-Driven Transformation: Redefining R&D and the Industrial Ecosystem

AI is fundamentally reshaping the R&D paradigm in synthetic biology, propelling the industry from “trial and error” toward “precision design.”

AI is reshaping the industry’s R&D and industrial ecosystem: by integrating with automated equipment to create “autonomous biological laboratories,” it optimizes R&D processes and shortens development cycles; by leveraging digital twins and biosensors to manage production, it reduces scale-up timelines and lowers investment costs; and by driving the penetration of synthetic biology into multiple sectors, it supports the “dual carbon” goals and the industry’s green transition.

3.The amino acid sector maintains its leading position, driving the industrialization of synthetic biology

China’s amino acid industry holds an absolute leading position in the global field of synthetic biology applications. As the most mature and highly industrialized segment in this sector, the industry has taken the lead in achieving large-scale application of synthetic biology technologies and serves as a global benchmark for the industrial implementation of synthetic biology.

Breakthroughs in synthetic biology technologies can, on the one hand, effectively reduce production costs and enhance production efficiency for existing amino acid products; on the other hand, they can continuously enrich the industry’s product portfolio, accelerate the R&D and iteration of new products, and steadily fill market gaps in niche segments such as high-end pharmaceutical and specialty amino acids; simultaneously, synthetic biology has broken through the traditional boundaries of the industry. Leveraging its robust industrial foundation and the rapid advancement of AI, China’s amino acid industry will continue to expand its applications into emerging fields such as non-grain fermentation, bio-based materials, and bulk chemicals.

(III) The Company’s Competitive Advantages in the Industry

1.Leading Scale: As a global leader in the amino acid industry, the company holds the world’s largest production capacity for lysine and threonine, ranks second globally in MSG production, and leads the global market in xanthan gum. Through the acquisition of Kyowa Hakko Kogyo of Japan, the company has successfully entered the high-end pharmaceutical amino acid market, further solidifying its leading position.

2.Outstanding Full-Industry-Chain Advantages: Leveraging its mature biorefining industry and biological technologies such as whole-genome sequencing, bioinformatics analysis, gene editing, metabolic engineering, and cell culture, the company has established a comprehensive full-industry-chain for biomanufacturing. At the same time, it has strategically planned and constructed multiple pilot-scale platforms to achieve a closed-loop system spanning “R&D—pilot testing—engineering—scalable production.” On one hand, this accelerates the implementation of new microbial strains and processes into large-scale production, driving continuous cost reductions; on the other hand, it enables the adoption of new technologies and products, bridging the critical gap between the laboratory and production, thereby enriching the product portfolio and expanding the industry’s boundaries.

3.Continuously Enhanced Global Competitiveness: Through years of accumulation, the company has established a comprehensive global operational service system and a replicable management framework. Leveraging robust engineering capabilities and a professional international management team, we provide strong support for future mergers and acquisitions as well as overseas greenfield investments, steadily advancing our international expansion and moving toward the strategic goal of becoming a “leading enterprise in synthetic biology.”

In summary, leveraging its scale, industrial chain advantages, and ability to compete globally, Meihua Bio will continue to lead the global biotechnology industry and serve as a key driver of green, low-carbon, and high-quality development in the biomanufacturing sector.

III. Discussion and Analysis of Business Performance

In 2025, the company achieved operating revenue of RMB 24.209 billion, a decrease of 3.43% compared to the same period last year. During the reporting period, production capacity for products such as lysine and isoleucine continued to expand, and both production and sales volumes increased steadily. However, due to the pass-through effect of falling raw material prices, sales prices for major products declined, resulting in a slight year-over-year decrease in operating revenue. Net profit attributable to shareholders of the listed company reached RMB 3.281 billion, an increase of 19.72% compared to the same period last year, and non-recurring gains arising from the completion of a cross-border asset acquisition increased net profit by RMB 831 million.

During the reporting period, the Company maintained strategic resolve and a long-term perspective. Seizing the opportunity presented by the successful implementation of the Kyowa project, it accelerated global resource integration and production capacity deployment to secure a leading position in the field of synthetic biology. Concurrently, the Company advanced its digital and intelligent transformation and organizational capacity building, thereby strengthening its core competitiveness amid the industry’s profound restructuring.

(I) The Kyowa Project Successfully Completed, with Significant Improvements in Overseas Acquisition and Integration Efficiency

To rapidly enhance its global product portfolio and overcome overseas technical and trade barriers, the company has prioritized overseas acquisitions and integration as a key driver for implementing its globalization strategy. In 2025, the company focused on advancing the acquisition and integration of the

Kyowa-related projects in Japan, successfully completing the entire process from asset transfer to business handover.

The company has successfully achieved seamless integration and efficient collaboration between the overseas team and its existing management system. By optimizing team structures, standardizing operational processes, and upgrading production equipment, the company has achieved technological breakthroughs and a significant increase in production capacity. Notably, the capacity utilization rate of core products has increased by over 20% compared to pre-integration levels, while unit production costs have decreased by 15% year-over-year, demonstrating outstanding integration results.

This acquisition and integration not only enhanced the company’s global product supply network and addressed regional supply gaps, but also leveraged Kyowa’s established overseas distribution channels to effectively boost the global visibility and core competitiveness of the company’s products, laying a solid foundation for future overseas market expansion and the deepening of its global footprint.

Following the successful completion of the project, the company carried out an internal strategic reorganization, integrating all acquired assets and operations into the newly established Plumino. Plumino serves not only as a key vehicle for the company’s globalization strategy but also as a bridgehead for introducing advanced global technologies, bearing the core mission of technological upgrading and product innovation.

(II) Plumino: A Global Technology Hub and Precision Fermentation Innovation Platform

Currently, all assets and operations acquired in this transaction have been fully integrated into Plumino. In line with the company’s strategic positioning, its core business areas, technological strengths, and future plans for differentiated operations are as follows:

1.New Core Business Areas: High-End Pharmaceutical Amino Acids and High-Value recision Fermentation Products

Through this integration, the company has achieved a leap forward in expanding its business portfolio, extending comprehensively from traditional feed-grade and food-grade amino acids into high-end niche markets such as pharmaceutical-grade amino acids, amino acids for cell culture media, and cosmetic-grade amino acids. The product portfolio covers core categories such as arginine, histidine, serine, and glutamine, as well as niche pharmaceutical-grade amino acids including alanine, branched-chain amino acids, proline, and phenylalanine. This has successfully addressed the previous gaps in the high-end pharmaceutical amino acid business, establishing a comprehensive, multi-tiered amino acid product system encompassing feed-grade, food-grade, and pharmaceutical-grade categories.

As a strategic hub for technology introduction, Plumino will build upon its strengths in pharmaceutical amino acids to focus on developing a precision fermentation technology platform, with the goal of producing more high-value active pharmaceutical ingredients through precision fermentation. Its applications will be further expanded into multiple high-value sectors, including innovative drugs, immunomodulation, foods for special medical purposes, cell culture, and cosmetics, thereby continuously enhancing its market competitiveness.

2. New Core Technological Advantages and Breakthroughs Following the Acquisition

(1) Comprehensive Industrial Chain Technology and Quality Control System: The company possesses a complete industrial chain technology spanning from crude fermentation to pharmaceutical-grade purification. It has fully inherited Kyowa’s pharmaceutical-grade amino acid purification processes and rigorous quality control systems, which have been refined over many years. The company maintains quality control capabilities that meet high international standards such as those of the FDA and CEP, featuring significant technological barriers that are difficult for competitors to replicate.

(2) Global Intellectual Property Protection and Technological Integration Breakthroughs: Through this acquisition, the company has rapidly established a global intellectual property protection network covering core synthetic biology products and key processes, effectively circumventing technological barriers in overseas markets. At the same time, by combining the company’s deep technical expertise in fermentation processes and strain improvement, we have achieved two-way technological integration and iterative upgrades, particularly realizing major breakthroughs in the field of precision fermentation technology, with synergies fully demonstrated.

(3) Development of the Precision Fermentation Technology Platform: Leveraging the Plumino platform, the company has established an advanced R&D system for precision fermentation technology. This system enables targeted optimization of fermentation processes for specific high-value products, significantly enhancing production efficiency and product purity, and laying a solid technical foundation for the large-scale production of high-value products such as bio-API.

3. Future Business Strategy: Technology-Driven and Differentiated Development

Leveraging Plumino’s established international compliance and registration team, the company will implement a “technology-driven, category-differentiated” development strategy moving forward. We will focus on the R&D, production, and sales of core pharmaceutical amino acid products, striving to become an industry leader with scale, cost, and technological advantages. At the same time, we will actively pursue high-margin new projects to cultivate new growth drivers and achieve sustainable development.

(1) Performance Goals and Technical Targets: Over the next five years, Plumino aims to lead the market by setting the highest standards in quality control and operational excellence. The company plans to turn a profit by 2026 and double its revenue by 2030. In terms of technological breakthroughs, the company plans to file more than 15 patents in the field of precision fermentation.

(2) Core Product Strategy: Balancing Technological Advancement and Precision Fermentation

Plumino’s core development strategy centers on “technology-driven innovation, precision fermentation, and breakthroughs in high-end markets”:

Through precision fermentation technology, the company focuses on cost optimization and capacity expansion. In the high-end pharmaceutical amino acid sector, leveraging existing regulatory compliance and a rigorous quality control system, Plumino will continue to consolidate its market position and increase market share; In the food-grade amino acid sector, we will expand our food-grade arginine production lines and scale up operations. By applying new fermentation processes to enhance product purity and stability, we will improve production efficiency for arginine, histidine, and other products while reducing energy consumption by more than 20% .

(3) New Business Strategy: Focusing on High-End Segments of the Pharmaceutical Industry

By focusing on high-end segments of the pharmaceutical industry, we will utilize precision fermentation to produce a wider range of high-value active pharmaceutical ingredients (APIs) and actively pursue new projects with high profit margins and growth potential.

(III) Focusing on innovation-driven development, strengthening technological leadership, and securing a leading position in the field of synthetic biology

In 2025, the company launched the development of an intelligent R&D system based on an AI Agent architecture as part of its efforts to build a synthetic biology platform. At the same time, it comprehensively advanced various initiatives, including intellectual property strategy, external collaboration, technology commercialization, and talent development:

1.Strong Patent Portfolio, Solid Institutional Foundation

Through the acquisition of relevant product technologies from Japan’s Kyowa, the company has rapidly established a global intellectual property protection network covering core synthetic biology products and key processes, effectively circumventing technical barriers in overseas markets; As of the end of 2025, the company had filed a cumulative total of 337 patent applications (of which 115 have been granted), including 40 applications filed throughout 2025 alone. These cover the entire technical process—from strain screening and fermentation processes to product extraction—further consolidating the company’s technological advantages.

The company has iteratively refined multiple core systems related to the commercialization of R&D outcomes, establishing comprehensive standards for the entire process—from project initiation, implementation, and acceptance to commercialization—and standardizing the use of R&D funds. This has enabled standardized, regulated, and meticulous management of R&D projects, effectively enhancing R&D efficiency and mitigating R&D risks.

2.Leveraging World-Class Resources to Break Down Barriers in the High-End Market

During the reporting period, the company proactively engaged with world-class research resources, reaching in-depth cooperation agreements with several internationally renowned research institutions and leading scientists in the industry. By focusing on the industry’s technical pain points and challenges, the company collaborated on cutting-edge R&D and key technological breakthroughs, effectively addressing development bottlenecks such as low yields of certain strains and difficulties in product extraction.

Building on our global market strategy, we will complete the registration of multiple products in the EU and the U.S. by the end of 2025. The successful implementation of these compliance registrations will not only effectively mitigate operational risks in overseas markets but also significantly enhance our products’ competitiveness in gaining market access, thereby strengthening the company’s position in the international market.

3.Deep Integration of Research and Production Leads to Significant Gains in Efficiency

Through sustained R&D efforts, the company successfully implemented the microbial strains and process technologies for several core products in large-scale production in 2025. Thanks to technological upgrades via the synthetic biology platform, the metabolic efficiency of the new strains reached industry-leading levels, while the new processes demonstrated significant advantages in terms of high stability and low cost. This not only substantially improved production efficiency but also further strengthened the company’s technological competitiveness. These innovative achievements have generated substantial new benefits, laying a solid foundation for the company’s future high-quality development.

4.A Pool of Top-Tier Talent with Comprehensive Capabilities Across the Entire Value Chain

The company adheres to a talent development strategy of “high-end leadership and tiered support.” We have strategically recruited a number of PhDs in synthetic biology from renowned domestic and international institutions, covering key technical areas such as strain engineering and metabolic regulation, thereby strengthening our core R&D capabilities. At the same time, we have refined our internal training system. Through mentorship programs, project-based training, and external research and training opportunities, we have further solidified our core talent pipeline, enhanced the team’s overall innovation capacity, and laid a solid talent foundation for our R&D efforts.

(IV)AI Drives Digital and Intelligent Transformation, Enhances Management, and Enables Leapfrog Growth

With the goal of building “data-driven smart manufacturing,” the company established the Production 4.0 Digital and Intelligent Transformation Office to systematically advance the deep integration of AI technology with production management. By constructing an integrated production operations platform centered on the MES, the company has achieved a fundamental shift in management from an “experience-driven” to a “data-driven” model, laying a solid foundation for the intelligent upgrade of the entire production process.

The deployment of the MES follows an implementation strategy of “comprehensive coverage, integrated data, and intelligence-driven operations,” adopting a “unified platform plus regional adaptation” architectural model. During the reporting period, the system was fully implemented at the three core production bases in Xinjiang, Tongliao, and Jilin, establishing a digital management network that covers all production stages and spans the entire process from raw material intake to finished product shipment.

The system’s core capabilities enable three major breakthroughs: First, end-to-end visualized control and management, which uses real-time data collection and dynamic monitoring to visually display production status, key process parameters, and equipment performance metrics, allowing for real-time oversight of the entire production process; second, intelligent early warning and proactive prevention, which establishes capabilities for early identification and warning of production fluctuations and equipment anomalies, driving a shift in management from reactive response to proactive prevention; third, data traceability and decision-making support: establishing a comprehensive data archive spanning the entire supply chain from raw materials to finished products to support production process traceability, process parameter optimization, and business decision-making, thereby providing data-driven support for continuous improvement in production operations.

(V)Linking Production and Sales, Optimizing the Supply Chain, and Building a Comprehensive Competitive Advantage in the Market

In 2025, faced with a complex landscape marked by widespread industry-wide capacity expansion and intense market competition, the company will adhere to the core principle of “securing supply through procurement, expanding the market through sales, and fostering synergy between production and sales.” By coordinating procurement and sales efforts, the company aims to ensure precise focus and mutual reinforcement across both production and sales operations.

Centered on the core strategies of “in-depth market analysis, structural optimization, and digital and intelligent empowerment,” the company has achieved dual improvements in procurement cost reduction and supply chain resilience. In raw material procurement, the company leveraged its three major corn procurement bases to conduct in-depth market analysis, building inventory at opportune moments when market prices were low, thereby outperforming the market. For coal procurement, the company capitalized on the downward shift in market prices to optimize the structure of long-term contract suppliers. Regarding chemical auxiliaries, the company introduced suppliers from outside the region through a “long-term contract as a foundation + market-based supplementary orders” approach, thereby optimizing the supplier structure. In terms of digital and intelligent empowerment, the company launched the Kingdee Xinghan Procurement Management System, digitizing the entire procurement process and driving a shift in decision-making from experience-based to data-driven. Regarding supplier structure optimization, the proportion of core strategic suppliers was increased to 36% , and a three-tier cultivation system - “potential, strategic, and core” - was established.

In 2025, the company adhered to a strategy of “production-driven sales and full production and sales,” continuously optimizing its sales model and customer structure, resulting in a steady increase in market share for its core products. The company maintained industry-leading market shares in threonine, lysine, and MSG; the 80% lysine project achieved full production and sales within three months of commencement. In response to the EU anti-dumping investigation, the company leveraged its relative tariff advantages and implemented measures such as global inventory allocation, expansion into non-EU regions, and piloting off-site warehouses to effectively stabilize its foreign trade foundation. At the same time, the company continued to refine its standardized sales system, achieving a steady year-over-year 10% growth in the number of regular customers, while customer quality and sales retention continued to improve.

(VI)Corporate Culture Unites Hearts and Minds, Laying the Foundation for High-Quality evelopment

Culture is the soul and core cohesive force of corporate development. In 2025, the company will focus on fostering a strong sense of cultural identity among all employees and building a corporate community of shared destiny. Adhering to a dual-drive strategy of “strengthening the enterprise through talent and revitalizing it through culture,” we will reinforce employees’ sense of identity, belonging, and mission by establishing solid institutional foundations, creating a supportive work environment, and harnessing the power of our corporate culture.

Laying a Foundation Through Systems: Using cultural transformation as a lever, we have achieved a deep integration of cultural development and standardized management, driving a shift in the management model from “reliance on leaders” to “reliance on systems.”

Creating a Welcoming Environment: Upholding our “people-oriented” cultural ethos, we have prioritized upgrading office and production environments as a key driver of cultural development, completing renovations and functional optimizations in multiple workshop offices and the technical building.

Building Cohesion Through Activities: We have organized cultural events such as the Meihua Competition, Cultural Festival, and employee outings to foster a sense of unity. Additionally, we have held skills competitions on the MES and Feishu applications to promote learning and practical application through competition, thereby enhancing both professional capabilities and team collaboration.

Empowering Through Talent: The Company adheres closely to the philosophy of “Everyone Participates in Management; Creation and Sharing,” promoting the deep integration of cultural development and talent development. We uphold an incentive mechanism based on the principle of “more work, more pay; better performance, better compensation,” and strengthen our talent pipeline through management rotation and competency certification. By incorporating the Company’s core values into our training system, we use culture to unite our talent and talent to carry forward our culture, thereby laying a solid foundation for the Company’s long-term development.

Looking ahead, the Company will strive toward the goals of becoming a “Lighthouse Factory” and a leader in synthetic biology, driving the Company toward higher-quality and more sustainable development.

IV. Analysis of Core Competitiveness during the Reporting Period

√ Applicable Not applicable

The Company’s core competitiveness is an organic whole driven by synergies across multiple dimensions. It is powered by R&D innovation and the rapid commercialization of its outcomes, underpinned by end-to-end cost control and efficient operations, grounded in a diversified product portfolio and strategic scale, propelled by global expansion and risk management, and supported by a distinctive organizational culture and talent system—all of which collectively build industry-leading competitive barriers.

(I)Integrating R&D and Production to Break Through Boundaries

Leveraging long-term, sustained investment in R&D and a deep foundation of technical expertise, the Company has assembled a core R&D team comprising professionals from renowned academic institutions. We have established an in-house high-performance microbial strain platform capable of optimizing fermentation processes specifically for high-value products. Furthermore, through years of R&D, we have accumulated a vast amount of experimental and technical data. By deploying an intelligent bioinformatics system based on an AI Agent architecture and integrating it with our established global intellectual property network, we are able to accelerate technology iteration cycles and maintain a sustained technological lead.

At the same time, the Company has coordinated the planning and construction of multiple pilot-scale platforms, achieving seamless integration between the R&D process and the pilot-scale phase. This has enabled the Company to establish end-to-end capabilities spanning “R&D—pilot-scale testing—engineering—mass production.” On the one hand, this facilitates the rapid implementation of new strains and processes while continuously reducing costs; on the other hand, it allows the Company to adopt new technologies and products, thereby enriching its product portfolio and expanding the boundaries of the industry.

(II) Efficient Operations, Cost Leadership

In terms of strategic layout in key production regions and vertical integration, the Company prioritizes the resource advantages of core raw materials when selecting production sites. Each facility has established a comprehensive industrial resource recycling system encompassing “corn processing—self-generated steam—wastewater treatment—biological organic fertilizer production,” providing an inherent advantage in cost leadership; In factory design and construction, the Company optimizes fixed asset investment through integrated design and reduces energy consumption during operations. By precisely planning the capacity allocation for multiple products, the Company facilitates seamless integration and coordinated synergy between upstream and downstream processes, ensuring cost leadership; In operational management, the Company possesses an exceptional integrated operational system, continuously strengthening organizational efficiency, strictly enforcing daily settlement and closure, and leveraging process optimization, digitalized collaborative control, and closed-loop performance evaluation mechanisms to continuously improve operational efficiency and achieve cost leadership.

(III) Diversified Product Portfolio: Weathering Market Cycles

The Company has established a product matrix centered on amino acids that spans multiple sectors and encompasses a full range of product categories. By leveraging market demand differences and hedging across various application areas, the Company has effectively mitigated the performance volatility associated with industry cycles in individual product lines. Thanks to its world-leading production capacity and advantages in full-chain operations, the Company maintains robust cash flow security and operational stability across its entire business even when specific products are in a downturn.

(IV) From “Exporting Products” to “Exporting Capabilities”: Building New Competitive Advantages in the Global Market

Through years of experience, the Company has established a comprehensive global operational service system and a replicable management framework, and possesses the professional expertise to navigate international trade disputes. Leveraging its specialized capabilities in global investment and mergers and acquisitions, the Company has further expanded its strategic scope for global resource allocation and leapfrog development. By continuously building an intellectual property protection system that spans the entire industrial chain, the Company is steadily transitioning from “exporting products” to “exporting capabilities.”

Through diversified approaches such as overseas capacity expansion and localized operations, we aim to unlock value in regions with optimal resources. Moving forward, the Company will continue to optimize its global supply structure to achieve long-term leadership and high-quality development in the global competitive landscape.

(V) Cultivating a Cohesive Culture to Build a Talent Hub

The steady implementation of our four core pillars—R&D innovation, end-to-end operations, product scale, and global expansion—would not be possible without the strong support of our distinctive organizational culture and comprehensive talent system. By establishing robust systems, fostering a supportive environment, building a cohesive culture, and empowering our talent, the Company drives the deep integration of cultural development and talent development.

The Company upholds a distinctive organizational culture centered on “collective management and shared success,” and has implemented multiple employee stock ownership plans to closely align the Company’s growth with employees’ personal interests. At the same time, it adheres to a strategy of “combining recruitment with development,” implementing the “Zhiyuan Plan” to focus on cultivating high-caliber, diverse talent and building a pool of professionals to support its global expansion and business upgrades.

V. Major Business Performance during the Reporting Period

During the reporting period, the Company achieved operating revenue of RMB 24.209 billion, a decrease of 3.43% year-on-year; net profit attributable to shareholders of the listed company reached RMB 3.281 billion, an increase of 19.72% year-on-year. During the same period, production capacity for products such as lysine and isoleucine continued to expand, and both production and sales volumes increased steadily. However, due to the pass-through effect of falling raw material prices, sales prices for major products declined, resulting in a slight year-on-year decrease in operating revenue.

(I). Analysis of Main Business

1. Analysis of changes in relevant items in the profit statement and the cash flow statement

Unit: Yuan Currency: RMB

Explanation of change in revenue: During the Reporting Period, the Company’s revenue decreased by 3.43% year-on-year to 24.209 billion yuan. Main reasons: Sales volume increased due to the ramp-up of production capacity for products such as monosodium glutamate and isoleucine at the Company’s subsidiaries, as well as the commissioning of a new lysine production line. However, driven by falling raw material prices, sales prices for key products—including monosodium glutamate, xanthan gum, threonine, and lysine—declined, resulting in a decrease in operating revenue.

Explanation of change in operating costs: During the Reporting Period, the Company’s operating costs decreased by 2.13% year-on-year to 19.609 billion yuan. Main reasons: Although the increased sales volume of threonine, xanthan gum, and feed-grade valine drove up sales costs, the overall decline in raw material costs and improved production efficiency led to lower manufacturing costs, resulting in a decrease in total operating expenses.

Explanation of change in selling expenses: During the Reporting Period, the Company’s selling expenses dropped by 6.18% year-on-year. Main reasons: A decrease in employee bonuses and external consulting fees.

Explanation of change in general and administrative expenses: During the Reporting Period, the Company’s general and administrative expenses increased by 5.72% year-on-year. Main reasons: An increase in business from overseas companies.

Explanation of change in financial expenses: During the Reporting Period, the Company’s financial expenses increased by 10 3.41% year-on-year. Main reasons: Both interest expenses and interest income decreased during the period, and foreign exchange gains also decreased due to fluctuations in exchange rates in the foreign exchange market.

Explanation of change in R&D expenses: During the Reporting Period, the Company’s R&D expenses increased by 1.63% year-on-year. Main reasons: The Company increased its R&D investment during the period.

Explanation of change in net cash flows from operating activities: During the Reporting Period, the Company’s net cash flows from operating activities dropped by 13.35% year-on-year. Main reasons: A decline in the selling price of products during the current period caused cash flow from operating activities to decrease compared to the same period last year.

Explanation of change in net cash flows from investment activities: During the Reporting Period, the Company’s net cash flows from operating activities dropped by 18.69% year-on-year. Main reasons: This was due to an increase in project investments and foreign investments during the period.

Explanation of change in net cash flows from financing activities: During the Reporting Period, the Company’s net cash flows from financing activities increased by 63.21% year-on-year. Main reasons: A decrease in dividend payments and share buybacks during the current period.

Detailed explanation of significant changes in the Company’s business type, profit composition, or profit sources during the Reporting Period  Applicable surd Not applicable

2. Analysis of Revenue and Costs

surd Applicable Not applicable

The Company achieved a revenue of 24.209 billion yuan, a 3.43% decrease compared to the same period last year. Operating costs amounted to 19.609 billion yuan, with gross profit decreasing by 433 million yuan. However, the gross profit margin increased by 1.08 percentage points compared to the same period last year.

The main factors for the change in revenue: sales volume increased due to the ramp-up of production capacity for products such as MSG and isoleucine at the Company’s subsidiaries, as well as the commissioning of a new lysine production line; however, a decline in market prices for key products—including monosodium glutamate, xanthan gum, threonine, and lysine—led to a decrease in operating revenue.

Unit: Yuan Currency: RMB

(1).Main Business Performance by Industry, Product, Region, and Sales Model

“Direct sales” refers to sales made directly to end customers, while “sales via agency” refers to sales made to parties other than end customers.

Explanation of main business performance by industry, product, region, and sales model

1) During the Reporting Period, the Company’s revenue from animal nutrition amino acid products decreased by 2.88 percentage points year-on-year, and gross profit margin increased by 1.18 percentage points year-on-year. The revenue decrease was mainly due to the fact that the revenue growth from higher sales volumes of lysine, feed-grade isoleucine and other products could not offset the revenue decline caused by the decrease in market prices; the increase in gross profit margin was primarily attributed to the decrease in material costs and improvements in production efficiency, which offset the loss from the price decline.

2) During the Reporting Period, the Company’s revenue from human nutrition and medical amino acid products increased by 55.45% year-on-year, and gross profit margin increased by 7.44% year-on-year. The revenue growth was mainly attributable to higher sales volume and the expanded production scale of the overseas plant acquired during the Period; the gross profit margin improvement was mainly due to lower material costs and better production metrics.

3) During the Reporting Period, the Company’s revenue from food taste and trait optimization products decreased by 5.98 percentage points year-on-year, and gross profit margin decreased by 6.72 percentage points year-on-year. The decline in both revenue and gross profit was primarily due to the decrease in product prices during the Reporting Period.

4) During the Reporting Period, the Company’s revenue from other products decreased by 12.81 percentage points year-on-year, and gross profit margin increased by 0.87 percentage points year-on-year. The decrease in revenue was mainly due to the decline in the price of petroleum-grade xanthan gum.

(2).Analysis of Production and Sales

√ Applicable Not applicable

Explanation of production and sales

1) Reasons for change in the production, sales, and inventory of amino acids for animal nutrition: This is primarily due to the commissioning of a new lysine production line at our Jilin subsidiary during the reporting period, which has increased the output of lysine and by-products, driving sales growth and a corresponding rise in inventory.

2) Reasons for change in the inventory of amino acids for human nutrition andmedical purposes: The increase in production, sales, and inventory is primarily due to the expansion of production and operational scale following the acquisition of overseas factories.

3) Reasons for Changes in Inventory of Food Taste and Trait Optimization Products: During the Reporting Period, the Tongliao MSG project increased its production capacity, leading to increases in output, sales, and inventory.

(3).Performance of Significant Purchase Contracts and Significant Sales Contracts

 Applicable √ Not applicable (4).Analysis of Costs

Unit: Yuan Currency: RMB

Other information regarding the analysis of costs None (5).Change in Consolidation Scope Caused by Share Changes in Key Subsidiaries during the Reporting Period  Applicable √ Not applicable (6).Significant Changes or Adjustments to the Company’s Businesses, Products, or Services during the Reporting Period  Applicable √ Not applicable (7).Information of Key Customers and Suppliers Customers or suppliers under the control of the same controlling party shall be treated as a single

customer or supplier and presented on a consolidated basis, except for those actually controlled by the same state-owned asset management agency.

Explanation of the consolidation of the following customer and supplier information based on the principle of common control

None

A. Information of the Company’s key customers and Suppliers

surd Applicable Not applicable

Sales to the top five customers amounted to 2,539,781,400yuan, accounting for 10.48% of the total sales for the year; in particular, among sales to the top five customers, sales to related parties were 0 yuan, accounting for 0% of the total sales for the year.

Purchases from the top five suppliers amounted to 1,419,335,300 yuan, accounting for 8.3% of the total purchases for the year; in particular, among purchases from the top five suppliers, purchases from related parties were 0 yuan, accounting for 0% of the total purchases for the year.

B. Circumstance during the Reporting Period where sales from a single customer exceeded 50% of the total, there was any new supplier among the top five suppliers, or the Company relied heavily on a minority of suppliers  Applicable√ Not applicable Circumstance during the Reporting Period where purchases from a single supplier exceeded 50% of the total, there was any new supplier among the top five suppliers, or the Company relied heavily on a minority of suppliers  Applicable √ Not applicable C. During the reporting period, the Company’s shares were subject to a delisting warning or other risk warning Top five customers  Applicable√ Not applicable Top five suppliers  Applicable√ Not applicable D. The Company generated revenue from trading activities during the reporting period  Applicable√ Not applicable Top five customers for whom trading revenue accounted for more than 10% of total revenue  Applicable√ Not applicable Top five suppliers for whom trading revenue accounted for more than 10% of total revenue  Applicable√ Not applicable

Other information: None

3. Expenses

√ Applicable Not applicable

Refer to the Analysis of Main Business

4. R&D Spending

(1).Information of R&D spending √ Applicable Not applicable

Unit: Yuan Currency: RMB

(2).Information of R&D personnel

√ Applicable Not applicable

(3).Explanation

 Applicable√ Not applicable

(4).Reasons for significant changes in the structure of R&D personnel and impact on the Company’s future development  Applicable√ Not applicable

5. Cash flows

√ Applicable Not applicable Refer to the Analysis of Main Business

(II). Explanation of Significant Changes in Profit Caused by Business Other than Main Business  Applicable√ Not applicable

(III). Analysis of Assets and Liabilities

√ Applicable Not applicable

1. Assets and liabilities

Unit: Yuan Currency: RMB

Other information: None

2. Overseas assets

√ Applicable Not applicable

(1). Asset size

The Company’s overseas assets reached 3.029 (unit: billion yuan, currency: RMB), accounting for 11.69% of the total assets.

(2). Explanation of a high proportion of overseas assets

 Applicable√ Not applicable

3. Restrictions over major assets as of the end of the Reporting Period

√ Applicable Not applicable

4. Other information

 Applicable√ Not applicable

(IV). Analysis of Industrial Business Information

√ Applicable Not applicable

In 2025, as the global economic and trade landscape undergoes profound adjustments and China’s livestock industry optimizes and upgrades its production capacity, the amino acid industry enters a new phase of development characterized by both capacity expansion and trade barriers.

According to data from Boyar, global feed-grade amino acid production reached 7.763 million metric tons in 2025, representing a year-on-year increase of 11.1% . China’s feed-grade amino acid production stood at 5.584 million metric tons, up 14.2% year-on-year, accounting for over 70% of global output and establishing the country as the world’s core production hub for amino acids. Affected by anti-dumping policies in regions such as the EU and the U.S., coupled with domestic capacity expansion, the industry’s profit margins were significantly compressed in the second half of the year. Companies actively addressed these challenges through a combination of measures, including upstream and downstream cooperation, overseas expansion, and technological upgrades, thereby driving the restructuring of global supply chains and value recovery.

1. Main raw materials - analysis of change in corn market

Corn is the core raw material for the Company’s main products, accounting for over 50% of production costs during the Reporting Period. Its price fluctuations directly affect the Company’s cost control. Corn market conditions are influenced by multiple factors, including the prices of feed substitutes (such as soybeans and wheat), demand from the downstream livestock industry, and the international landscape.

According to a report by Boyar, the government continues to implement policies aimed at “stabilizing planting area and increasing yield per unit area.” By 2025, corn production is projected to exceed 300 million metric tons for the first time, with a 1.6% increase in yield per unit area, providing a stable supply for the downstream processing industry.

In terms of prices, the national average price of corn in 2025 was 2,263 yuan per ton (down 2.33% year-on-year). Although this was at a relative low point over the past five years, prices rebounded for six consecutive months after hitting bottom during the year.

Boyar predicts that in 2026, domestic corn supply will be ample and imports will trend upward, while growth in downstream consumption will be limited. Consequently, prices are unlikely to rise significantly; however, policy support will limit the downside room. The annual average price is expected to remain within a reasonable range of 2,100–2,480 yuan per ton.

By 2025, the Company will leverage its production bases in the three major corn-producing regions of Tongliao, Xinjiang, and Jilin. By comprehensively utilizing diverse models such as direct farm purchases, auctions, and collection and storage services, the Company will solidify its raw material supply foundation while continuously optimizing costs without compromising quality.

2. Analysis of changes in main products

According to statistics from Boyar, global production of feed amino acids (including lysine, threonine, methionine, and tryptophan) is projected to reach approximately 7.763 million tons in 2025, representing a year-over-year increase of 11.1% . China’s production of feed-grade amino acids is expected to reach approximately 5.584 million tons, marking a year-over-year increase of 14.2% .

(1) Lysine

In 2025, the lysine industry saw a significant expansion in production capacity, with global capacity increasing by 15.4% year-over-year to 5.528 million tons (on a pure basis). Of this, China’s capacity reached 4.401 million tons, up 20.1% year-over-year, accounting for 79.6% of the global total.

In terms of pricing, the annual average price of 98.5% lysine in 2025 was 8.04 yuan/kg, a year-over-year decline of 22.84% ; the average price of 70% lysine was 5.06 yuan/kg, a year-over-year decline of 3.98% . In the fourth quarter of 2025, as industry supply increased, the entire sector operated at a loss.

On the export front, in June 2025, the United States launched an anti-dumping and countervailing duty investigation against Chinese lysine; in July, the European Union issued a final ruling imposing high anti-dumping duties ranging from 47.4% to 58.2% . Coupled with the ongoing anti-dumping investigation in Brazil, these factors have hindered domestic lysine exports. Data shows that from January to December 2025, cumulative exports of lysine esters and salts from China fell by 6.2% year-on-year. The decline in exports led to high domestic inventory levels and exacerbated the supply-demand imbalance.

(2) Threonine

In 2025, the growth in threonine industry capacity slowed, with global capacity reaching 1.485 million tons, a year-over-year increase of 5.5% . Of this, domestic capacity stood at 1.385 million tons, up 3.7% year-over-year, maintaining a stable global share of 93.3% . Domestic production reached 1.133 million metric tons, a year-over-year increase of 9.0% , accounting for 93.8% of global output, solidifying the industry’s dominant supply position.

In terms of pricing, industry data indicates that the average annual price of threonine in 2025 was 9.54 yuan/kg, a year-on-year decline of 12.56% , with prices falling to 7,000–7,100 yuan/ton by the end of December.

Regarding exports, overseas inventory buildup remained cautious in 2025. Domestic threonine exports from January to December declined by 3.5% year-on-year, and the return of foreign trade supplies intensified domestic competition.

(3) Valine

Growth in valine production capacity is expected to slow in 2025. According to a report by Boya and Xun, total capacity is projected to reach approximately 368,000 tons by the end of 2025, with annual production estimated at 191,000 tons—a slight year-over-year decrease of 0.7% . Exports are projected to reach approximately 101,000 tons, while domestic consumption is estimated at 85,000 tons.

In terms of pricing, the average market price of valine in 2025 is projected to be 13.71 yuan/kg, a year-on-year decline of 4.79% . Driven by the combined impact of two rounds of declines in soybean meal prices from their peak levels and the EU’s preliminary anti-dumping ruling proposing provisional anti-dumping duties ranging from 32.2% to 53.9% , valine prices are expected to fluctuate at high levels before trending downward throughout the year.

(4) MSG

By 2025, the domestic total production capacity of the MSG industry will reach 3.95 million tons, with output at 3.6535 million tons. The industry exhibits extremely high concentration, with the CR3 reaching 84% , indicating a trend toward consolidation and efficiency. Domestic consumption is projected to reach 2.498 million tons in 2025, with a five-year average growth rate of 7.68% .

In terms of pricing, MSG prices have followed a pattern of rising first and then falling over the past five years. The average price in 2025 is projected to be 6,906.3 yuan per ton, representing a year-on-year decrease of approximately 10% .

In terms of exports, the MSG export market has shown an overall upward trend. In 2025, export volume is projected to reach 1.0243 million tons, with a five-year average growth rate of 10.15% .

Analysis of Business Information in the Food Industry

1. Composition of Main Business during the Reporting Period

√ Applicable Not applicable

Unit: Yuan Currency: RMB

Main business performance during the Reporting Period by sales model

Main business performance during the Reporting Period by region

2. Profit from Online Sales Channels during the Reporting Period

 Applicable √ Not applicable

(V). Analysis of Investment

Overall analysis of external equity investment √Applicable Not applicable

1. Significant equity investment

√ Applicable Not applicable

Unit: Yuan Currency: RMB

2. Significant non-equity investment

 Applicable√ Not applicable

3. Financial assets measured at fair value

√ Applicable Not applicable

Securities investment  Applicable √ Not applicable Explanation of securities investment  Applicable √ Not applicable Private equity investment  Applicable √ Not applicable Derivatives investment  Applicable √ Not applicable

4. Progress of the restructuring and integration of material assets during the Reporting Period

 Applicable√ Not applicable (VI). Sale of Material Assets and Equity  Applicable √ Not applicable

(VII). Analysis of Major Holding and Joint Stock Companies

surd Applicable Not applicable Major subsidiaries and equity-invested companies affecting the Company’s net profit by 10% or more surd Applicable Not applicable

Unit: 100 million yuan Currency: RMB Acquisitions and Disposals of Subsidiaries During the Reporting Period

√ Applicable Not applicable

Other Explanations:  Applicable √ Not applicable (VIII). Structured Entities Controlled by the Company  Applicable √ Not applicable

VI. The Company’s Discussion and Analysis of its Future Development

(I). Industrial Landscape and Trend

√ Applicable Not applicable

During the reporting period, against a backdrop of sustained growth in market demand, leading companies in the industry continued to consolidate their dominant positions through capacity expansion and technological iteration. The strong profitability seen in previous years also attracted some upstream companies to cross over into the industry, resulting in a continuous increase in total industry supply. At the same time, changes in the international trade environment led some regions to implement measures such as anti-dumping duties, providing a recovery opportunity for local production capacity that was on the verge of shutting down; as a result, overseas companies saw a rebound in capacity utilization rates and an increase in supply.

The simultaneous release of new domestic production capacity and the recovery of overseas supply have created a compounding effect. In the short term, the industry is experiencing a temporary imbalance in which supply growth outpaces demand growth, leading to downward pressure on product prices and intensified market competition. As a result, the industry landscape has entered a new phase of optimization and restructuring.

1. Demand in the Industry Continues to Grow

Currently, demand in the global amino acid industry continues to grow, and the market is steadily expanding:

(1) Natural Growth in the Industry

As a key feed additive, the natural growth in demand for amino acids is driven not only by increased feed production but also by the following factors:

First, improvements in the aquaculture structure. As large-scale aquaculture expands globally, China’s aquaculture model is transitioning from traditional small-scale farming to standardized, industrialized practices. Industrialized aquaculture places higher demands on feed nutrient standardization, driving a corresponding increase in the rigid demand for amino acids.

Second, this is driven by policies promoting the reduced use of soybean meal. Under the national food security strategy, policies aimed at reducing soybean meal usage have been further strengthened. Since soybean meal substitutes have relatively low amino acid content and digestibility, additional amino acids must be added to ensure nutritional balance in feed, thereby driving growth in demand for amino acids.

Third, the application of amino acids in the feed industry has expanded. With the upgrading of industrialized farming and the diversification of livestock and aquaculture species, the use of amino acids has extended from traditional livestock, poultry, and aquaculture to niche sectors such as specialty farming and pet food. At the same time, specialized amino acid formulations tailored to different growth stages and species are gradually being adopted, further driving demand for amino acids in the feed industry.

(2)Expansion into Multiple Applications, Increasing Demand Across Various Sectors

The growth in demand for amino acids is also driven by the diversification of application scenarios, particularly their increasing penetration into the food industry and various emerging high-value-added sectors, which has further expanded the industry’s growth potential.

In the food industry, as consumers become increasingly health-conscious, amino acids are being used more widely in the development of low-calorie novel sweeteners, functional foods, and sports nutrition supplements to meet the public’s personalized nutritional needs.

In emerging fields, amino acid-based pesticides have become a research focus due to their environmental friendliness and high efficacy, while amino acid-based skincare products have emerged as core ingredients in high-end products thanks to their gentle, skin-friendly properties. At the same time, their application potential in the field of biomaterials continues to be realized, creating a diverse range of demand.

(3) Lower costs have improved the cost-effectiveness of additives, driving an increase in their usage

Advances in technologies such as synthetic biology, artificial intelligence, and enzymatic catalysis have boosted production efficiency, reduced production costs, and improved the cost-effectiveness of products. This, in turn, has led to increased use of amino acids across various sectors, creating a virtuous cycle.

2. Industry Barriers Continue to Rise, with Leading Companies Gaining a Clear Edge

While the scale of industry supply continues to expand driven by demand, barriers to entry are steadily rising due to multiple factors, including intensifying competition, accelerating technological advancements, and a deteriorating international trade environment. This is reflected in the following areas:

(1) R&D and Technological Barriers

Amino acid production places extremely high demands on core technologies and microbial strain performance, requiring companies to continuously increase their R&D investments. Leading companies have maintained high levels of R&D investment over the long term, accumulating a wealth of technical expertise and establishing a distinct competitive edge in core areas such as microbial strain cultivation and process optimization; at the same time, through continuous technological iteration, they have consistently optimized production processes and reduced energy consumption and material loss, transforming their technological advantages into significant cost advantages and establishing a virtuous cycle of “R&D investment technological iteration cost optimization.” Leveraging these dual advantages of technology and cost, leading companies have secured a dominant position in the high-end market through core patents and relevant international certifications, driving the industry’s continuous upgrading.

(2) Capital Barriers

The amino acid industry is a typically capital-intensive sector, with significant capital investment required for expanding supply capacity and upgrading production technology. Leveraging their strong financial resources and stable cash flow, leading companies are well-positioned to manage various

financial pressures, continuously optimize production capacity and upgrade technology, further solidify their market position, and set a benchmark for high-quality development in the industry.

(3) Scale and Multi-Product Barriers

Amino acid production exhibits significant economies of scale. Leading companies effectively reduce unit production costs and improve capacity utilization through large-scale production, while achieving sales synergies to further enhance their market competitiveness. The synergy between a multi-product portfolio and economies of scale creates high barriers to entry in the industry: producing multiple products requires mastery of various core technologies, and leading companies, backed by sustained R&D investment, are the first to overcome technical bottlenecks; their mature and well-established management systems are also difficult to replicate. Furthermore, a multi-product matrix enables sales synergy, precisely meeting the diverse needs of downstream customers and efficiently sharing customer resources, thereby further consolidating the leading companies’ core positions and driving the continuous increase in industry concentration.

(4) Trade Barriers

Anti-dumping investigations targeting Chinese amino acid products in overseas markets have become increasingly common. Coupled with rising demands for product quality and safety certifications in these markets, this has further raised the barriers to entry for the industry. Leading companies, backed by robust compliance management systems and ample financial resources, are well-positioned to effectively manage various trade risks, maintain a solid foothold in overseas markets, and steadily expand their global market share, thereby emerging as the core driving force behind the global expansion of China’s amino acid products.

3. Accelerating Overseas Expansion

Faced with multiple industry challenges—including rising industry barriers, tightening anti-dumping policies overseas, and the recovery of overseas production capacity—establishing overseas manufacturing facilities has become an inevitable choice for domestic amino acid companies seeking to mitigate risks and achieve sustainable development. Leading companies, leveraging their comprehensive advantages in capital, technology, scale, and compliance, have taken the lead in expanding overseas:

(1) Avoid anti-dumping barriers in overseas markets, effectively safeguard market share abroad, and better meet the growing demand in those markets;

(2) By precisely targeting core markets in Europe, the Americas, Asia, and Africa, this strategic layout not only enables immediate, on-the-ground responsiveness but also allows the Company to swiftly identify and effectively meet customers’ diverse needs. Furthermore, through localized value creation, it has established a high-value-added sales system that provides robust support for the Company to continuously enhance its global pricing power, strengthen its core competitiveness, and consolidate its global market position;

(3) Optimize the global supply chain layout to achieve synergy between domestic and overseas supply sources, thereby effectively hedging against the risk of volatility in any single market;

(4) Break through various industry barriers, strengthen our global core competitiveness, and continue to solidify our position as an industry leader.

(II). The Company’s Development Strategy

√ Applicable Not applicable

The Company’s development strategy is as follows:

1. focusing on the high-quality growth of the main business, striving to become a leading enterprise in synthetic biology

2. driven by both technology and management, strengthening the Company’s defense line through the concerted efforts of its R&D, supply, production, sales, and all functional departments;

3. Persisting in creation and sharing, sticking to a customer-centered approach, and upholding the principle of integrity, thus building a healthy and sustainable corporate development ecosystem.

(III). Business Plan

√ Applicable Not applicable

1. Business Objectives

In 2026, the Company will continue to focus on its core business, with the strategic goal of becoming a leading enterprise in the field of synthetic biology. We will implement our internationalization strategy, enhance the automation and intelligence of our production processes, promote refined operations and management, complete new construction projects as scheduled, and continuously improve the Company’s competitive strength.

2. Main Business Initiatives

(1) Deploy an AI-powered bio-intelligence information system to establish a new paradigm for digital R&D

While continuing to strengthen the development of its synthetic biology platform, the Company has proactively initiated the independent research, development, and deployment of an intelligent bioinformatics system based on a multi-AI agent architecture and integrated with various large language models. As a core initiative in the Company’s efforts to drive the digital transformation of its R&D system, this system aims to build a highly intelligent, data-driven R&D support platform to comprehensively enhance R&D innovation efficiency and the ability to build technological barriers.

The system development follows a strategic approach characterized by “phased implementation, modular deployment, and scalable evolution.” The system is currently in use within the R&D department. Phase One focuses primarily on the field of bioinformatics, providing precise and efficient intelligent decision-making support for systematic intellectual property planning and the development of high-performance microbial strains. By integrating the Company’s long-accumulated genomic data, patent literature, and experimental records, the system has constructed a specialized knowledge graph. This enables core functions such as intelligent patent analysis, strain design optimization, and experimental protocol recommendations, significantly enhancing the scientific rigor and foresight of R&D work.

Looking ahead, the system will gradually expand its functional scope in accordance with the established plan: In the second phase, it will extend to downstream R&D processes such as fermentation, extraction, and purification, and establish process optimization models; in the third phase, it will integrate data across the entire “R&D–pilot–production” chain, enabling production big data to directly inform R&D efforts and creating a data-driven, closed-loop intelligent R&D model.

The successful deployment of this system marks a significant step forward for the Company in the field of deep integration between artificial intelligence and biomanufacturing. By deeply embedding cutting-edge AI technologies into its core R&D processes, the Company is not only able to accelerate technology iteration cycles and optimize the allocation of R&D resources, but also stands to establish a new competitive advantage in data-driven intelligent decision-making, providing a powerful driving force for the Company’s long-term technological leadership and sustainable development in the global biomanufacturing sector.

(2) Deepening International Expansion, Building a New Global Operational Framework

Advancing the globalization strategy through a “greenfield layout + global response” approach: 1) Based on its long-term development strategy, the Company is focusing on high-potential regions such as Southeast Asia, Africa, Central Asia, and the Americas, and completed a global scan of overseas greenfield investment opportunities in 2025. In 2026, the Company plans to center its efforts on 1–2 key target countries, steadily advancing preliminary work such as feasibility studies for overseas plant construction, site selection planning, and regulatory registration, to accelerate project implementation and refine its global footprint; 2) Positioning Primeno as a global technological bridgehead and precision fermentation innovation platform, the Company will enhance its competitiveness and profitability, complete the feasibility study for the expansion of its North American plant, and expand overseas production capacity; 3) Strengthen international R&D and project collaboration, promote technology introduction and joint innovation, and expand global industry influence.

(3) Optimize the layout of production capacity and accelerate the implementation and completion of key projects

Coordinate and optimize the domestic production capacity layout, and advance the implementation of key projects: At the Tongliao facility, focus on implementing technical upgrades to production lines and bringing new projects online, ensuring the smooth completion of projects such as the starch production line upgrade and the 300,000-ton threonine project; at the Xinjiang facility, improve the efficiency of existing production lines, advance the commissioning of the 90,000-ton valine project in Xinjiang, and initiate the technical upgrade of the lysine production line as well as the preparatory work for new projects such as arginine, thereby diversifying the product portfolio.

(4) Strengthen organizational, talent, and cultural development to solidify the foundation for core growth

In 2026, the Company will continue to build a talent development and incentive system with a practical focus. By utilizing a problem bank and job rotation training, we will enhance employees’ practical capabilities and ensure that talent development aligns with business needs. We will optimize the bonus pool and performance evaluation mechanisms to energize both the organization and its employees, fostering a learning-oriented and proactive team. At the same time, we will deepen our corporate culture initiatives to improve organizational synergy, advance the implementation of process and system updates to clarify responsibilities, standardize procedures, and reduce internal friction; we will continuously improve the workshop work environment, strengthen safety measures, and enhance employee sense of belonging; we will advocate for management to engage at the grassroots level with a pragmatic and efficient approach, encouraging managerial and technical staff to go to the front lines to resolve issues and eliminate formalism.

In 2026, the Company may face risks such as changes in the international environment and intensified market competition. The Company will improve its risk prevention and control mechanisms, enhance market analysis, strengthen project management, increase investment in research and development, refine talent incentive programs, and improve organizational adaptability to ensure the successful implementation of its business plans.

In 2026, industry consolidation will continue to deepen, presenting both challenges and opportunities. The Company will steadfastly implement the aforementioned business plan, strengthen its operational capabilities, foster team cohesion, and continuously solidify its core competitiveness while addressing these challenges, thereby laying a solid foundation for the Company’s long-term, steady development and sustained growth.

(IV). Potential Risks

√ Applicable Not applicable

1. Business Risks in Overseas Markets

Over the past three years, the proportion of the Company’s revenue derived from overseas core business operations has remained relatively stable. Overseas sales and production must strictly comply with the laws, regulations, licensing requirements, and product standards of the respective countries or regions. Should there be significant changes in the international political and economic landscape or in other countries’ trade policies toward China, this could lead to obstacles in exporting products and increased operating costs, which in turn could impact overall performance. Specifically, this primarily involves three aspects:

First, exchange rate fluctuation risk: Some of the Company’s overseas transactions are denominated in U.S. dollars, and the construction of overseas production facilities, procurement of raw materials, and capacity exports all involve settlements in multiple currencies. Although the Company has established a foreign exchange risk monitoring mechanism and employs financial derivatives for hedging, sharp exchange rate fluctuations or improper hedging strategies could still have a certain impact on the Company’s financial condition;

Second, risks associated with anti-dumping and trade remedy investigations: Overseas markets such as the European Union, the United States, and Brazil have already initiated anti-dumping investigations into the Company’s relevant products. If the final duty rates are lower than expected, this will directly undermine the products’ competitiveness in overseas markets, leading to a decline in export sales and intensifying competitive pressure in the domestic market;

Third, new risks associated with overseas production: The Company currently operates overseas production facilities. If it continues to establish new overseas production facilities, this will further increase operational risks overseas, including geopolitical risks, construction and operational cost risks, and risks related to supply chain and production capacity alignment.

Response measures: The Company will continue to monitor international developments and trade policies, optimize foreign exchange risk management, and actively address anti-dumping investigations; prior to establishing new overseas production facilities, we will thoroughly assess the compliance of potential sites and their market potential, strictly control construction and operational costs, and establish stable local supply chains; we will strengthen cross-regional operational management and talent development, improve technical confidentiality mechanisms, mitigate various compliance and operational risks, and expand our overseas production and market footprint in a compliant manner.

2. Risks Associated with Changes in Industry Regulation and Industrial Policy

The Company is primarily engaged in the research, development, production, and sale of amino acid products. Its business operations are subject to regulation by various domestic and international authorities and must comply with stringent domestic and international regulations, standards, and quality and technical requirements. As the industry evolves, the regulatory environment both domestically and internationally may undergo further adjustments, with policies and market access requirements potentially becoming more stringent. This could result in restrictions on the Company’s production and operations, increased compliance costs, limitations on the market application of certain products, and an impact on overall profitability.

Response measures: The Company will closely monitor developments in relevant policies and regulations, promptly assess potential impacts, adjust its business strategies, and proactively align with regulatory requirements.

3. Intensifying Industry Competition and Project Profitability Risks

In 2026, the Company continues to plan and advance major investment and construction projects, while several other companies in the industry also have plans to expand production capacity. If market demand fails to keep pace with this new capacity, or if outdated capacity is not effectively phased out, it could lead to intensified industry competition and falling product prices, posing a risk that the return on investment may fall short of expectations.

Response measures: The Company will manage project timelines effectively, strengthen market demand analysis, optimize production capacity allocation, and improve project operational efficiency.

4. Risks of Environmental Protection and Safe Production

The Company’s main production facility is designated as a key polluting entity; its production processes generate wastewater, exhaust gases, and solid waste. Should an environmental pollution incident occur due to management errors, equipment malfunctions, or force majeure, the Company would face administrative penalties and production suspensions for rectification, which would disrupt normal production and business operations. Furthermore, the Company’s production processes are complex and involve the use and storage of hazardous chemicals and special equipment. If safety management systems are not properly implemented, operations are not conducted in accordance with established procedures, or equipment is not properly maintained, this could lead to safety incidents resulting in personal injury, property damage, and production interruptions, thereby affecting operational stability.

Response measures: The Company will continue to strengthen environmental protection and safety management, improve prevention and control mechanisms, conduct regular equipment maintenance and employee training, increase environmental protection investments as required, and prevent all types of safety and environmental incidents.

5. Technological Risks

These primarily encompass two areas: first, risk of core technology leakage and loss of key technical personnel; second, risk of intellectual property protection. Although the Company holds patents covering the entire industrial chain and has established an intellectual property management system, it still faces the risk of its intellectual property being infringed upon or becoming the subject of litigation; such disputes could restrict product manufacturing and operations and hinder business development.

Response measures: The Company will further improve its technical confidentiality and talent incentive mechanisms, strengthen efforts to retain key technical personnel, continuously optimize intellectual property management, and proactively prevent intellectual property disputes.

6. Risks Associated with Cross-Border M&A

The Company completed the closing of the overseas target asset acquisition in July 2025, but subsequent operations still face risks. First, there are risks associated with acquisition and integration; second, there are force majeure risks, as significant adverse changes in the laws and regulations, natural environment, or socioeconomic conditions of the country or region where the overseas assets are located could disrupt local business operations and the integration process; third, there are risks associated with new product development and marketing.

Response measures: The Company will systematically advance the integration of its domestic and international operations, technologies, supply chains, and teams; continuously assess risks in overseas markets; strengthen management of the R&D process and market analysis; and strictly control risks associated with the development and promotion of new products.

7. Risks of Changes in Tax Incentive Policies

Some of the Company’s subsidiaries currently benefit from corporate income tax incentives. If these existing tax incentives are modified or not extended, the Company’s tax burden will increase directly, which could have an adverse effect on its operating performance.

Response measures: Closely monitor changes in tax policies, optimize tax planning, enhance profitability, and mitigate the impact of changes in tax incentives.

(V). Miscellaneous

 Applicable √ Not applicable

VII.Explanation of circumstances where the Company does not disclose information according to the standards due to special reasons, such as the standards not applicable to the Company or the information classified as state secret or trade secret, and the reasons  Applicable √ Not applicable

Section 4 Corporate Governance, Environment, and Society

I. Information of Corporate Governance

√ Applicable Not applicable

During the reporting period, in order to improve and optimize the Company’s governance structure, and in accordance with the relevant provisions of the Company Law of the People’s Republic of China and other applicable regulations, while taking into account the Company’s actual circumstances, the Company abolished the Board of Supervisors. The powers and responsibilities of the Board of Supervisors were assumed by the Audit Committee of the Board of Directors. The Company also revised the entire text of its Articles of Association. In accordance with the requirements of laws, regulations, and normative documents, as well as the revised Articles of Association, the Company simultaneously revised or established relevant systems for external disclosure and disclosed them on the Shanghai Stock Exchange website (www.sse.com.cn).

In 2025, the Company’s Audit Department set compliance-oriented operations as its core management objective, adhered to the principle of risk-oriented auditing, and utilized end-to-end internal control management as a key lever to comprehensively strengthen the Company’s operational risk defenses and solidify the foundation of internal control management. During the reporting period, the department focused on the Company’s core operational chains and deepened internal control audits in key business areas. It completed specialized audits in seven major business sectors—including consignment management, materials procurement, product sales, asset management, operational control, engineering projects, and human resources—to comprehensively identify weaknesses in internal controls and uncover potential risks. Regarding the issues identified during the audits, the Company implemented full-process tracking and supervision, enforced accountability for rectification, and ensured the closed-loop implementation of corrective measures to achieve tangible results. These efforts have promoted standardized business management, refined risk control, and established a sustainable internal control system, thereby providing a solid foundation for the Company’s high-quality and steady development.

In terms of entrusted storage management, the Company exercises strict control over risks throughout the entire process of entrusted procurement and storage. It focuses on the supplier admission and contract signing stages, conducting qualification reviews in advance, and comprehensively evaluating core risk indicators of entrusted storage suppliers, including hardware facilities, financial strength, storage capacity, and financing capability. By optimizing the deposit and fee payment models and standardizing entrusted storage contract templates, it effectively transfers entrusted storage risks. For the corn entrusted storage operations in Tongliao, Xinjiang, and Jilin, the Company has particularly intensified routine inspections and supervision, shifting the control model from post-event handling to real-time process prevention and control, thereby effectively reducing the risks of corn entrusted storage.

In managing the procurement and payment cycle, we conduct compliance audits across the entire process—from purchase requests, supplier onboarding, and contract signing to order placement, goods receipt, warehousing, invoicing, and payment settlement—with a focus on key risk areas. We closely monitor critical risk points, identify management weaknesses with precision, and implement weekly tracking and closed-loop corrective actions. Through end-to-end compliance controls, we ensure that all procurement transactions and accounts payable are fully documented without omission, thereby safeguarding operational compliance and the security of funds.

In terms of asset management, by 2025, we will comprehensively review and refine our management systems for inventory, fixed assets, and funds. We will conduct quarterly asset inventories, standardize the approval process for asset procurement as well as the control of asset receipt, issuance, and storage, thereby significantly improving the level of basic asset management. For fund management, we will strictly enforce the separation of duties and authorization-based approval processes, strengthen daily oversight of bank accounts, financial instruments, and bank-enterprise reconciliations, and precisely manage cash flows to mitigate liquidity risks.

In terms of operations management, in accordance with the “Operations Department Standardization Manual” and the requirements of the annual Directive No. 1, we conducted on-site inspections and evaluations focused on warehouse management, production-supply-sales coordination, and cost management, with a particular emphasis on end-to-end control of the entire process for raw grain unloading, warehousing, and outbound shipping. Regarding production-supply-sales coordination, we refined standards and prioritized order fulfillment and handling of abnormal inventory situations, thereby enhancing operational efficiency.

In terms of compliance management, in 2025, in line with the Company’s sustainable development plan, anti-bribery compliance audits were conducted across the Group and its subsidiaries. These audits focused on verifying the signing of compliance commitments by employees, suppliers, and customers, and promptly addressing any issues in the implementation of relevant policies. The Human Resources Department conducted due diligence on new hires and transferred employees and had them sign integrity agreements, effectively mitigating business ethics risks. As a result, the compliance awareness and management standards of the entire workforce have continued to improve.

During the reporting period, the Audit Department organized and collaborated with RSM China CPA LLP to complete the 2025 internal control audit and evaluation, during which no material internal control deficiencies were identified. Regarding the deficiencies identified in the 2025 internal control audit, the Audit Department worked with the relevant business departments to formulate corrective measures, all of which have been fully implemented and closed out.

Are there any significant differences between the Company’s corporate governance and the laws, administrative regulations, and the CRSC’s rules on the governance of listed companies? If yes, state the reasons.

 Applicable √ Not applicable

II. The Company’s controlling shareholders and actual controller’s specific measures that ensure the Company’s independence in assets, personnel, finance, institution, and business, as well as solutions, work progress, and subsequent work plans that affect the Company’s independence

 Applicable √ Not applicable  Applicable√ Not applicable

III. Information of Directors and Officers

(I). Changes in the shares held by and remuneration of the directors and officers currently in office and those who resigned during the Reporting Period √Applicable □Not applicable Unit: share

Note 2: Due to the expiration of the Board of Directors’ term, Mr. Wang You will no longer serve as the Company’s Deputy General Manager; however, he will continue to hold other positions within the Company following his departure.

Note 3: The significant year-over-year increase in compensation for certain officers is primarily due to the fact that some quarterly performance targets from the previous period and performance targets committed to at the beginning of the year were not met; consequently, certain performance-based payments (including incentive bonuses) were not accrued or paid out. For this reporting period, performance targets were met, and such payments were accrued and paid out in accordance with established policies.

Other information  Applicable √ Not applicable

(II). Positions held by the directors and officers currently in office and those who resigned during the Reporting Period

1. Positions held in shareholders  Applicable √ Not applicable

2. Positions in other entities

√ Applicable Not applicable

(III). Remuneration of directors and officers

√ Applicable Not applicable

(IV). Changes in directors and officers

√ Applicable Not applicable

(V). Explanation of punishments by securities regulatory bodies during the last three years

 Applicable √ Not applicable

(VI). Miscellaneous  Applicable √ Not applicable

IV. Duty Performance of Directors

(I). Directors’ participation in board meetings and general meetings

Explanation of failure to attend two consecutive meetings in person  Applicable surd Not applicable

(II). Circumstances where directors raised an objection to any matter

 Applicable √ Not applicable

(III). Miscellaneous

 Applicable √ Not applicable

V. Information of Specialized Committees under the Board of Directors

√ Applicable Not applicable

(I). Members of the specialized committees under the board of directors

Note: The Company completed the election of members for the 11th Board of Directors and its specialized committees on December 29, 2025. For details regarding the members of the specialized committees of the 10th Board of Directors, please refer to the relevant announcements previously disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn).

(II). The audit committee held six meetings during the Reporting Period.

(III).The nomination committee held two meetings during the Reporting Period.

(IV).The remuneration and appraisal committee held three meetings during the Reporting Period.

(V). The strategy committee held one meetings during the Reporting Period.

(VI).Circumstances where an objection was raised to any matter

 Applicable √ Not applicable

VI. Explanation of Circumstances Where the Audit Committee Identified Risks in the Company

 Applicable √ Not applicable

The audit committee had no objections to supervised matters during the Reporting Period.

VII. Staff Overview of the Parent Company and Key Subsidiaries as at the end of the Reporting Period

(I). Staff overview

(II). Remuneration policy

√ Applicable Not applicable

The Company has consistently upheld the philosophy of “all staff involved in business, value creation and sharing,” and adheres to the compensation principles of “three fairnesses and one more” (fairness, impartiality, transparency, and more pay for outstanding talents) and “three highs and one low” (lowest labor cost per ton of product, highest local wage level, highest industry wage level, and highest per capita productivity), and continuously builds and improves a systematic and sustainable compensation system.

The total compensation package consists of fixed pay (base salary, position-based pay, and skill-based pay) and performance-based pay (monthly performance bonuses, quarterly performance bonuses, annual performance bonuses, and the incentive bonus pool). In accordance with the relevant provisions of the “Proposal on Further Improving the Performance Evaluation and Incentive Mechanism” approved at the 2021 Annual General Meeting, the incentive bonus pool is set aside annually at a certain percentage of the annual net profit margin and distributed from the top down. In accordance with the organizational structure, the total bonus pool is first calculated, and then the bonus pools for each entity are calculated based on the profit center management units of each subsidiary (production down to production lines, procurement down to departments, and sales down to divisions).

In 2025, the Company remained committed to sharing the fruits of its growth with its employees. Through a diverse range of incentive measures—including pay raises based on competency certification, project bonuses, performance bonuses, and employee stock ownership plans—the Company effectively encouraged employees to enhance their professional skills, motivated them to excel in their roles, and fostered continuous value creation.

In addition, the Company continues to refine its employee benefits system. Through a range of support measures—including housing, transportation, and meal allowances—we are committed to creating a comfortable, respectful, and inclusive work and development environment, laying a solid foundation for the mutual growth and sustainable development of both employees and the Company.

Through these initiatives, the Company has consistently raised the income levels of all employees, fostering a long-term, stable, and harmonious upward trend in both business performance and employee compensation.

(III). Training plan

√ Applicable Not applicable

In 2025, the Company will continue to deepen its talent development strategy of “tiered empowerment” and “integrating training with practical application,” iteratively refine its training system, strengthen performance evaluations based on real-world experience and specialized training, and systematically enhance the professional competence and job readiness of employees at all levels.

For senior core management personnel, the Company has established a dual-track development model combining “external education and training” with “internal development.” During the reporting period, the Company completed the establishment of the core framework for this development program: on the one hand, it selected a group of outstanding executives to participate in authoritative external MBA programs to absorb advanced management concepts and industry experience; on the other hand, it selected a group of key personnel to undergo specialized internal training, leveraging their role in “mentoring and guiding” others to create an empowerment mechanism where “key personnel drive the capability enhancement of internal employees.”

To strengthen the development of middle and front-line management teams, the Company has made the training of department heads and shift supervisors a regular initiative in 2025. During the reporting period, the Company conducted a total of four specialized training sessions for department heads, training a cumulative total of 93 mid-level production managers. Additionally, the Company successfully completed training for 396 shift supervisor candidates and provided off-the-job training for 21 incumbent shift supervisors. These efforts optimized the age and competency structures of the frontline management team, providing strong support for improving the Company’s operational efficiency.

In terms of professional and technical talent development, the Company has launched specialized training programs for technical engineers and established a tiered training system comprising “entry-level, intermediate, and advanced” levels. In 2025, strictly adhering to the plan established at the beginning of the year, the Company has fully completed the training of entry-level technical personnel. During the reporting period, a total of 15 training sessions were conducted, training 382 participants. At the same time, the Company has provided pathways for shop floor workers to advance to technical engineer positions through initiatives such as employee interest classes and workshop cultural activities, thereby fostering a vibrant work environment.

The Company also encourages employees to continuously enhance their professional skills. In 2025, it will launch a special initiative to help potential successors in key departments—such as safety and environmental protection—obtain professional certifications, including the Registered Safety Engineer certification. The Company will incorporate the attainment of these certifications into the core metrics for job qualification assessments and promotion evaluations, thereby incentivizing employees to proactively improve their professional capabilities.

In terms of cultivating future leaders, the Company employs a three-pronged development model for management trainees: “one-third job rotation + one-third project work + one-third departmental training.” Following onboarding training, participants are rotated through substantive and challenging frontline roles in sales, procurement, production, and other departments. Once their career direction is clarified, they undergo pre-employment training for their target positions at the next level. Concurrently, they receive practical training through project-based assignments to enhance their problem-solving and teamwork skills. Moving forward, the Company will continue to optimize its management trainee development system, consistently identifying and cultivating high-caliber management talent to provide sustained momentum for the Company’s high-quality development.

In addition, the Company places great emphasis on recruiting and integrating new talent, and has consistently conducted new employee training programs. By 2025, a total of 125 training sessions had been held. Through systematic and standardized training, the Company has empowered new employees to quickly familiarize themselves with the corporate culture, master job-specific skills, and adapt to the pace of work, thereby enabling them to fully realize their potential and inject fresh vitality into the Company’s sustained and healthy development.

(IV). Labor outsourcing

√ Applicable Not applicable

VIII. Plans for Profit Distribution or the Conversion of Capital Reserve

(I). Formulation, implementation, or adjustment to the cash dividend policy

√ Applicable Not applicable

During the reporting period, the Company placed a high priority on shareholder returns. At the second extraordinary general meeting of shareholders held on December 29, 2025, the revised Articles of Association were reviewed and approved, further clarifying and refining the cash dividend policy and enhancing the standardization and transparency of profit distribution. For specific details, please refer to the relevant announcements disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn).

The changes to the cash dividend policy in the Articles of Association before and after the revision are as follows:

Before the revision: “The specific conditions for cash dividends

1. The Company’s distributable profits for the fiscal year (i.e., the after-tax profits remaining after offsetting losses and setting aside capital reserves) are positive;

2. The audit firm issues an unqualified audit opinion on the Company’s financial statements for the fiscal year;

3. The Company has no plans for significant external investments or major cash expenditures within the next twelve months (excluding projects funded by raised capital);

4. The weighted average return on net assets for the fiscal year, calculated based on net profit attributable to common shareholders (using the lower of the amounts before and after adjusting for non-recurring gains and losses), is not less than 6% ;

5. If the audited debt-to-equity ratio at the end of the fiscal year exceeds 70% , the Company may refrain from distributing cash dividends.

Revised: “The specific conditions and ratios for cash dividends

The following specific conditions must be met simultaneously when distributing cash dividends:

1. The Company’s distributable net profit for the current fiscal year or half-year (i.e., the after-tax profit remaining after offsetting losses and setting aside statutory reserves) is positive (based on the parent company’s financial statements), and the Company has sufficient cash flow such that the payment of cash dividends will not affect its ongoing operations;

2. The parent company’s cumulative distributable profits are positive;

3. The audit firm issues an unqualified audit opinion on the Company’s financial statements for the current fiscal year;

4. The Company has no plans for major external investments or significant cash outflows within the next 12 months (excluding projects funded by raised capital);

5. The Company has sufficient funds, and its profitability and cash flow are sufficient to support ongoing operations and long-term development.

“Cash dividend ratio: Provided that the conditions for cash dividends are met and the Company has no major capital expenditure plans, the cumulative cash dividends distributed over the past three years shall not be less than 30% of the average annual distributable profits achieved over the same period.”

During the reporting period, the Company implemented and completed its 2024 annual profit distribution plan on May 23, 2025, distributing a cash dividend of RMB 0.42597 per share to all shareholders, for a total cash dividend of RMB 1,199,991,716.69. For further details, please refer to the Company’s “Announcement on the Implementation of the 2024 Annual Equity Distribution of Meihua Bio Group Co., Ltd.” (Announcement No. 2025-039) available on the Shanghai Stock Exchange website at http://www.sse.com.cn.

The 2025 annual profit distribution plan (preliminary proposal) was deliberated and approved at the second meeting of the 11th Board of Directors. The proposal is to distribute a cash dividend of 0.4279 yuan per share (inclusive of tax) based on the total share capital as of the equity distribution record date (excluding the number of shares held in the repurchase account). As of December 31, 2025, the total share capital of the Company is 2,804,241,650 shares, and based on this, the total cash dividend to be distributed is estimated at 1,199,935,002.04 yuan (inclusive of tax).

This proposal is subject to approval at the Shareholders’ Meeting, and the actual distribution amount will be based on the equity distribution implementation announcement issued by the Company. If there are any changes in the total share capital before the equity distribution record date, the total distribution amount will remain unchanged, and the per-share distribution ratio will be adjusted accordingly. In accordance with regulations, the Company’s board of directors will complete the distribution of equity within two months after the shareholders’ meeting approves the profit distribution plan.

In addition, the Company has formulated the “Three-Year (2026–2028) Shareholder Dividend Return Plan,” which was reviewed and approved at the second meeting of the 11th Board of Directors and is pending submission to the 2025 Annual General Meeting of Shareholders for approval.

The formulation, implementation, and adjustment of the Company’s profit distribution plan are in full compliance with the relevant provisions of the Articles of Association. Going forward, the Company will continue to enhance shareholder returns through a combination of cash dividends and share buybacks and cancellations.

(II). Explanation of specific matters related to the cash dividend policy √ Applicable Not applicable

(III). For the circumstance where the Company made a profit and the parent company’s profit distributable to shareholders was positive but no cash profit distribution plan was proposed during the Reporting Period, the Company should disclose the reasons as well as the use and use plan of the retained profit in detail.

 Applicable √ Not applicable

(IV). Plans for profit distribution and the conversion of capital reserve during the Reporting Period

√ Applicable Not applicable

Unit: yuan Currency: RMB

(V). Recent cash dividend distribution in the last three accounting years

√ Applicable Not applicable

Unit: Yuan Currency: RMB

IX. Information of the Company’s Share Incentive Plan, Employee Stock Ownership Plan, or Other Staff Incentives and Their Impact

 Applicable √ Not applicable

(II). Incentives that were not disclosed in the provisional announcement or made progress subsequently

Share incentives  Applicable √ Not applicable

Other information  Applicable √ Not applicable

Employee stock ownership plan √ Applicable  Not applicable

1. Employee Stock Ownership Plan for 2021

The Company held the 14th meeting of the ninth board of directors and the first extraordinary general meeting of 2021 on January 14, 2021, and February 1, 2021, respectively. At the meetings, the Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2021 and its Summary, the Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2021, and the Proposal on Requesting Full Authorization from the Annual General Meeting for the Board of Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and approved. For details, refer to the relevant announcements published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on January 15, 2021, and February 2, 2021, respectively.

Based on confidence in the Company’s sustainable development and the judgment of its share value, the extension of the 2021 Employee Stock Ownership Plan for an additional 36 months to February 11, 2027 was deliberated and approved at the first extraordinary general meeting of 2024.

As of the date of this report, all of the shares held under the Company’s 2021 Employee Stock Ownership Plan have been sold, and the plan has been fully implemented and terminated.

2. Employee Stock Ownership Plan for 2022

The Company held the 27th meeting of the ninth board of directors and the second extraordinary general meeting of 2021 on December 15, 2021, and December 31, 2021, respectively. At the meetings, the Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2022 and its Summary, the Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2022, and the Proposal on Requesting Full Authorization from the Annual General Meeting for the Board of Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and approved. For details, refer to the relevant announcements published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on December 16, 2021, and January 1, 2022, respectively.

The Company’s 2022 Employee Stock Ownership Plan was automatically terminated upon the expiration of its term on January 9, 2025. All Company shares held under the plan have been fully sold, and the liquidation of the relevant assets has been completed.

3. Employee Stock Ownership Plan for 2023

The Company held the 35th meeting of the ninth board of directors and the first extraordinary general meeting of 2023 on December 21, 2022, and January 6, 2023, respectively. At the meetings, the Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2023 and its Summary, the Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2023, and the Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and approved. For details, refer to the relevant announcements published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on December 22, 2022, and January 9, 2023.

As of the date of this report, all of the shares held under the Company’s 2023 Employee Stock Ownership Plan have been sold, and the plan has been fully implemented and terminated.

4. Employee Stock Ownership Plan for 2024

The Company held the 8th meeting of the tenth board of directors and the first extraordinary general meeting of 2024 on January 16 and February 1, 2024, respectively. At the meetings, the Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2024 and its Summary, the Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2024, and the Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and approved. For details, refer to the relevant announcements published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on January 17 and February 2, 2024.

As of June 27, 2024, the Company’s designated account for the 2024 employee stock ownership plan had purchased a total of 18,527,100 shares of the Company through centralized bidding on the secondary market, with a total transaction amount of 192,049,194 yuan (excluding transaction fees) and an average transaction price of approximately 10.37 yuan per share. The number of shares purchased accounted for 0.65% of the Company’s current total share capital of 2,852,788,750 shares. In accordance with the plan approved at the first extraordinary general meeting of 2024, the purchase under the 2024 employee stock ownership plan has been completed. The purchased shares are subject to lock-up and will be unlocked in two phases after 12 and 24 months from the date of the announcement, with the maximum lock-up period being 24 months. The proportions of shares to be unlocked in each phase are 50% and 50% , respectively.

As of the end of the Reporting Period, the vesting conditions for the first phase of the Company’s 2024 Employee Stock Ownership Plan had been satisfied, and 50% of the units had been released from lock-up. The Company’s designated account for the 2024 Employee Stock Ownership Plan held 9,266,101 shares, accounting for 0.33% of the Company’s current total share capital of 2,804,241,650 shares.

5. Employee Stock Ownership Plan for 2025

The Company held the 17th meeting of the tenth board of directors and the first extraordinary general meeting of 2025 on February 11 and February 27, 2025, respectively. At the meetings, the Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2025 and its Summary, the Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2025, and the Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and approved. For details, refer to the relevant announcements published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on February 12 and February 28, 2025.

As of the close of trading on August 1, 2025, the Company’s designated account for the 2025 employee stock ownership plan had purchased a total of 21,042,422 shares of the Company through centralized bidding on the secondary market, with a total transaction amount of 225,143,665.20 yuan (excluding transaction fees) and an average transaction price of approximately 10.70 yuan per share. The number of shares purchased accounted for 0.74% of the Company’s total share capital at that time of 2,852,788,750 shares. In accordance with the plan approved at the first extraordinary general meeting of 2025, the purchase under the Company’s 2025 employee stock ownership plan has been completed. The purchased shares are subject to lock-up and will be unlocked in two phases after 12 and 24 months from the date of the announcement disclosing the completion of the purchase, with the maximum lock-up period being 24 months. The proportions of shares to be unlocked in each phase are 50% and 50% , respectively.

As of the date of this report, the shares under the 2025 employee stock ownership plan remain subject to lock-up.

6. Employee Stock Ownership Plan for 2026

The Company held the 23rd meeting of the tenth board of directors and the second extraordinary general meeting of 2025 on December 11 and December 29, 2025, respectively. At the meetings, the Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2026 and its Summary, the Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2026, and the Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and approved. For details, refer to the relevant announcements published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on December 12 and December 30, 2025.

As of the date of this report, the Company has not yet purchased any shares under its 2026 Employee Stock Ownership Plan.

Other incentives  Applicable √ Not applicable

(III). Information of share incentives granted to directors and officers during the Reporting Period

 Applicable √ Not applicable

(IV). Appraisal mechanism for officers during the Reporting Period, as well as the establishment and implementation of the incentive mechanism

√ Applicable Not applicable

Adhering to the core philosophy of “Company-wide Management, Creation and Sharing,” the Company has established a comprehensive performance management and compensation incentive system for senior executives. The compensation received by senior executives consists of a base salary, position-based pay, performance-based pay, and incentive bonuses. The Company implements an annual salary system for senior management that combines position-based pay grades with performance evaluations. With the approval of the Board of Directors, the Company may additionally award incentive bonuses to senior management. Through the organic integration and gradual implementation of short-, medium-, and long-term incentives, the Company effectively promotes value creation among senior management, fostering a virtuous cycle of dynamic alignment between contributions and rewards, and continuously driving value creation and the sharing of results.

In accordance with the requirements of the “Guidelines on Corporate Governance for Listed Companies” and other relevant laws and regulations, the Company has formulated the “Remuneration Management System for Directors and Senior Management.” This system further clarifies matters such as the proportion of performance-based compensation for senior executives, deferred payment arrangements, and clawback mechanisms. The system was reviewed and approved by the Company’s 11th Board of Directors at its second meeting on April 21, 2026, and is still subject to approval by the shareholders’ meeting.

The Company’s Board of Directors has established a remuneration and appraisal committee, whose primary responsibilities include formulating and reviewing compensation policies, plans, and evaluation criteria for senior management, as well as organizing and implementing performance evaluations and assessments of senior management in accordance with established performance evaluation standards and procedures. In designing the evaluation mechanism, the Company adheres to the principle of aligning authority with responsibility, ensuring that the compensation levels of senior management are closely linked to their contributions to their roles, the Company’s overall performance, and its long-term strategic objectives, thereby supporting the Company’s pursuit of sustainable, high-quality development.

The Company has long been committed to aligning the interests of its core management team with those of the Company through incentive mechanisms. Since 2017, the Company has implemented seven employee stock ownership plans and one restricted stock incentive plan. By setting challenging company-wide performance targets and individual evaluation criteria, the Company has deeply integrated corporate development with personal growth. This mechanism has not only effectively stimulated the initiative and creativity of senior management and key personnel but has also created an internal driving force for the steady growth of key financial indicators such as revenue and net profit, achieving synergistic progress in strategy implementation, performance improvement, and talent development.

X. Development and Implementation of Internal Control Policies during the Reporting Period

√ Applicable Not applicable

In 2025, the Company strictly adhered to the “Basic Standards for Enterprise Internal Control” and relevant laws and regulations. In accordance with the requirements of the Company’s “Internal Control Management System”, and in light of the Company’s annual business objectives and actual development needs, the Company continued to advance the optimization, refinement, and effective implementation of its internal control system.

During the reporting period, to further strengthen the development of its internal control framework, the Company, in accordance with relevant laws and regulations and in light of changes in the internal and external environment as well as internal governance and control requirements, comprehensively reviewed, optimized, and updated the processes and policies of all departments and business segments. The Company also revised relevant internal control management documents, striving to establish a scientifically designed and effectively functioning internal control system. This initiative aims to better align with the Company’s current management practices and future development needs, thereby providing systematic support for the sound and compliant operation of all business activities and the effective prevention and control of operational risks.

The Company’s Board of Directors has established an audit committee to serve as the governing body for the inspection and oversight of internal controls. Under the guidance of the Audit Committee, the Company’s internal audit department is responsible for the day-to-day inspection and evaluation of internal control implementation. Together, these two bodies constitute the Company’s risk and internal control management framework, providing comprehensive oversight and evaluation of the Company’s internal control management.

In 2025, the Company organized and conducted an internal control evaluation in accordance with the corporate internal control standards and the Company’s regulations. In accordance with the management requirements of the “Basic Standards for Enterprise Internal Control” and the Company’s “Internal Control Management System,” the evaluation focused on the Company’s core business operations. It primarily involved internal control testing and evaluation across seven key business areas: consignment management, materials procurement, product sales, asset management, operational control, engineering projects, and human resources. This process accurately identified risk points in critical processes, collaborated with various business departments to establish and improve risk prevention and control mechanisms, optimized internal control requirements, ensured the standardized operation of all business activities, and supported the Company’s high-quality and steady development.

During the reporting period, the Company’s internal control system was effectively implemented, meeting management requirements and development needs, and providing a strong foundation for the sound operation of business activities and risk management. Based on an evaluation, the Company’s internal control system is complete, reasonable, and effective. As of the end of the reporting period, there were no material or significant internal control deficiencies. The system fulfilled its intended management and control functions across all aspects of the Company’s operations, effectively mitigating operational risks and facilitating the achievement of the Company’s business objectives.

For specific details regarding the Company’s internal control evaluation, please refer to the “Meihua Holding Group Co., Ltd. 2025 Annual Internal Control Evaluation Report,” which was disclosed on the Shanghai Stock Exchange website (www.sse.com.cn) on the same day as this report.

Explanation of major defects in internal control during the Reporting Period  Applicable √ Not applicable

XI. Management and Control of Subsidiaries during the Reporting Period

√ Applicable Not applicable

Important subsidiaries of the Company include Tongliao Meihua Biotech Co., Ltd., Xinjiang Meihua Amino Acid Co., Ltd., and Jilin Meihua Amino Acid Co., Ltd., among others. The Company provides overall guidance, process supervision, and resource support to the corresponding business departments of its subsidiaries, and implements systematic management and control in such aspects as standard operation, human resource management, financial management, internal audit, information disclosure, investment and financing management, and operational appraisal, thereby ensuring that the operations of each subsidiary comply with the Company’s overall development strategy and internal control requirements, thus improving overall operational efficiency, strengthening anti-risk capabilities, and realizing the security, preservation and appreciation of the Company’s assets.

During the Reporting Period, each subsidiary strictly followed the Basic Standard for Enterprise Internal Control and the Company’s unified standardized management systems and business processes. In alignment with the Company’s overall development strategy and annual operational goals, the subsidiaries developed tiered business plans and corresponding risk management mechanisms, continuously improved their internal control systems, and promoted the effective integration of strategy execution, business operations, and risk prevention and control.

On July 1, 2025, the Company and its wholly-owned subsidiary, Singapore Company, completed the closing of the acquisition with Kyowa Hakko. The target assets included Kyowa Hakko’s food amino acid and pharmaceutical amino acid businesses, among others. These assets and businesses were consolidated under Primeno, a subsidiary of the Company’s wholly-owned subsidiary, Singapore Company.

During the reporting period, the Company actively advanced the operational integration and management system alignment of its overseas subsidiary, Primeno, successfully completing the full-cycle process from asset transfer to business handover.

Risk Warning Regarding Abnormalities in Management Control of Subsidiaries  Applicable √ Not applicable

XII. Explanation of Relevant Information about the Internal Control Audit Report

√ Applicable Not applicable

The Company has engaged RSM China CPA LLP (Special General Partnership) to audit the internal control of the Company during the Reporting Period. The internal control audit report (Document No.: RSM Shen Zi [2026] 518Z0526) was issued, which concluded that, as of December 31, 2025, the Company maintained effective internal control over financial reporting in all material respects, in accordance with the Basic Standard for Enterprise Internal Control and related regulations. For details of the Company's internal control audit, please refer to the 2025 Annual Internal Control Audit Report of Meihua Holdings Group Co., Ltd. disclosed on the website of the Shanghai Stock Exchange (www.sse.com.cn) on the same date as this report.

Whether the internal control audit report is disclosed: Yes Type of opinion of the internal control audit report: Standard Unqualified

Was a non-standard audit opinion on internal controls issued for the reporting period or the prior year? □Yes √No

XIII. Rectification of Self-identified Problems in Special Action for the Governance of Listed Company

Not applicable

XIV. Environmental Information on Listed Companies and Their Major Subsidiaries Included in the List of Entities Required to Disclose Environmental Information in Accordance with the Law √ Applicable Not applicable

Other information √ Applicable Not applicable

In addition to the companies mentioned above, the Company’s other wholly-owned subsidiaries—such as Langfang Meihua Seasoning Food Co., Ltd. and Tongliao Meihua Seasoning Food Co., Ltd., which are primarily engaged in the packaging and sale of seasonings; Lhasa Meihua, which is primarily engaged in external investments; Hong Kong Meihua, a trading company primarily responsible for the export sales of the Company’s products; and Meihua (Shanghai) Biotechnology Co., Ltd., which is primarily engaged in technology development—have not been included in the list of enterprises required to disclose environmental information in accordance with the law.

XV. Social Responsibility-Related Work

(I). Whether the social responsibility report, the sustainable development report, or the ESG report was disclosed separately

√ Applicable Not applicable

The Company’s “2025 Environmental, Social, and Governance Report” was disclosed on the Shanghai Stock Exchange website on the same day as this report. The disclosure URL is: http://www.sse.com.cn.

(II). Information of social responsibility-related work

√ Applicable Not applicable

Other information √ Applicable Not applicable

For detailed information on the Company’s corporate social responsibility initiatives, please refer to the Company’s “2025 Environmental, Social, and Governance Report,” which was disclosed on the Shanghai Stock Exchange website (www.sse.com.cn) on the same day as this report.

XVI. Consolidation and Expansion of Achievements in Poverty Alleviation and Work Related to Rural Revitalization

√ Applicable Not applicable

Other information √ Applicable Not applicable

During the reporting period, the Company focused on rural industrial development and improving living conditions, injecting new vitality into sustainable development:

1. Promoting industrial and cultural development: The Company donated 300,000 yuan to Layu Township, Qiongjie County, Shannan City, Tibet Autonomous Region, earmarked for the rural revitalization and infrastructure improvement project in Qiangji Village, Layu Township, to promote the development of the local cultural industry.

2. Improving Infrastructure and Livelihoods: The Company donated 200,000 yuan to Seqing Township, Nie Rong County, Tibet Autonomous Region, specifically for local rural revitalization infrastructure projects (such as the repair of streetlights and the upgrading of lighting facilities); it also donated 80,000 yuan to Daobao Town, Taobei District, Baicheng City, specifically to assist in poverty alleviation efforts and support the construction of public infrastructure.

3. Supporting Model Development in Frontier Regions: We donated 50,000 yuan to the Wujiaqu City Charity Federation of the Sixth Division, earmarked specifically to support the Aketao Rural Demonstration Zone in Xinjiang in purchasing daily necessities and basic office supplies, thereby enhancing local social welfare and public service capabilities.

4. Empowering Agricultural Development: Tongliao Company and Xinjiang Company donated 140 tons and 7 tons of fertilizer, respectively, to local farmers. This tangible material support helps reduce production costs for farmers while improving soil fertility and overall agricultural productivity.

Going forward, the Company will continue to support the national rural revitalization strategy, actively fulfill its social responsibilities, help rural areas unleash their internal development potential, and promote the coordinated development of the economy, society, and the environment.

XVII. Miscellaneous

 Applicable √ Not applicable

Section 5 Significant Matters

I. Fulfillment of Commitments

(I). Commitments of relevant parties, including the Company’s actual controller, shareholders, related parties, acquirers, and the Company

√ Applicable Not applicable

(II). Whether the Company reached the original profit forecast in respect of any asset or project, if there was a profit forecast for the asset or project and it was still the profit forecast period during the Reporting Period and statement of the reasons

 Yes  No √ Not applicable

(III). Performance Commitments

 Applicable√ Not applicable

Changes to Performance Commitments  Applicable√ Not applicable

Other information  Applicable√ Not applicable

II. Use of Funds by Controlling Shareholder and Related Parties for Non-operational Purposes During the Reporting Period  Applicable √ Not applicable

III. Guarantees in Violation of Regulations  Applicable √ Not applicable

IV. Notes of the Board of Directors on the “Modified Audit Report” from the CPA Firm  Applicable √ Not applicable

V. Analysis of the Reasons for Changes in Accounting Policies or Accounting Estimates or Correction of Material Accounting Errors and the Effect (I). Analysis of the reasons for changes in accounting policies or accounting estimates and the effect √ Applicable Not applicable

1. Changes in significant accounting policies √ Applicable Not applicable

Unit: Yuan Currency: RMB

Adjustment process and other information: None

2. Changes in significant accounting estimates

(III). Communication with previously appointed CPA firms

√ Applicable Not applicable

During the reporting period, the Company communicated with both the former and the incoming accounting firms regarding the change of auditor. Both parties were informed of the change and raised no objections. The former and incoming accounting firms conducted communications and responded to relevant inquiries in accordance with the China Standards on Auditing No. 1153 — Communication Between Predecessor and Successor Auditors and other applicable requirements.

(IV). Review and approval procedures and other information

√ Applicable Not applicable

The aforementioned changes to accounting policies were approved at the second meeting of the Company’s 11th Board of Directors; the aforementioned change of accounting firm was approved at the 20th meeting of the Company’s 10th Board of Directors and at the second extraordinary general meeting of 2025.

VI. Appointment and Dismissal of CPA Firms

Unit: Yuan Currency: RMB

Explanation of appointment and dismissal of CPA firm √ Applicable Not applicable

In accordance with the “Measures for the Selection and Appointment of Accounting Firms by State-Owned Enterprises and Listed Companies” and other relevant regulations, and after comprehensively considering the Company’s business development and overall audit requirements, and to ensure the independence, objectivity, and fairness of the audit work, the Company’s 10th board of directors’ 20th Meeting and the 2025 second extraordinary general meeting of shareholders have approved the following: the Company has appointed RSM China CPA LLP (Special General Partnership) as its auditor for the 2025 financial statements and internal control audit, to provide audit services to the Company.

Explanation of appointment of another CPA firm during the audit period  Applicable √ Not applicable

Explanation of a reduction in audit fees by more than 20% (inclusive) from prior year √ Applicable Not applicable

Due to the establishment of new overseas subsidiaries following the Company’s cross-border acquisition, there has been a corresponding increase of 700,000 yuan in overseas audit services; this change in expenses is consistent with the Company’s actual circumstances.

VII. Delisting Risk

(I). Causes of delisting risk warning

(II). Countermeasures planned by the Company

 Applicable √ Not applicable (III). Termination of listing  Applicable √ Not applicable

VIII. Bankruptcy and Restructuring-Related Matters

 Applicable √ Not applicable

IX. Significant Litigation and Arbitration

√ The Company had significant litigation or arbitration in the year  The Company did not have significant litigation or arbitration

(I). Circumstances in which litigation or arbitration was disclosed in provisional announcements but did not subsequently progress

√ Applicable Not applicable

(II). Circumstance where any litigation or arbitration was not disclosed in provisional announcements or progressed subsequently

 Applicable √ Not applicable

(III). Other information

√ Applicable Not applicable

1. Litigation related to former Dalian Hanxin Bio-Pharmaceuticals Co., Ltd.

According to the Share Transfer Agreement for the transfer of 100% of the shares of Dalian Hanxin Bio-Pharmaceuticals Co., Ltd. (former name and now known as AIM Honesty Bio-Pharmaceuticals Co., Ltd., hereinafter referred to as “AIM Honesty”) by the Company’s wholly-owned subsidiary Lhasa Meihua Bio-investment Holdings Co., Ltd. to Liaoning AIM Bio-vaccine Technology Group Co., Ltd. (former name and now known as AIM Vaccine Co., Ltd.), Lhasa Meihua Bio-investment Holdings Co., Ltd. undertakes that, except for the liabilities specifically stated in the audit report and the financial statements provided to the acquirer and the liabilities that occurred abnormally in the normal course of business of AIM Honesty and its subsidiaries after the audit benchmark date and has been disclosed to the acquirer, AIM Honesty and its subsidiaries did not have any other debts or contingent debts. In the event that it violates the undertaking, it shall bear compensation liability for all the direct or indirect economic losses suffered by other parties due to the violation. In accordance with the aforementioned provision, the Company has performed the obligation for partial compensation. For more details, refer to the Company’s previous annual reports.

The Company’s subsidiary Lhasa Meihua Bio-investment Holdings Co., Ltd. (hereinafter referred to as “Lhasa Meihua”) received the Notice on Repaying Debts from AIM Honesty on October 13, 2020. According to (2015) DMSCZ No. 438 Civil Judgement issued by the Dalian Intermediate People’s Court of Liaoning, Kunming Sunwise Measure and Control Technology Co., Ltd. (hereinafter referred to as “Sunwise Measure and Control”) used the right of use of Parcels 17-1-3, 17-2, and five above-ground properties located in the industrial base at Kunming Economic and Technological Development Zone under its name to provide the guarantee for AIM Honesty to borrow loans from Bank of Jilin Co., Ltd. Dalian Branch under the Renminbi Borrowings Contract (2014 LJZ DL1114010272). The judicial sale of the above land parcels and properties pledged was done on April 19, 2018. The payment from the sale will be used to repay the bank loans, and Sunwise Measure and Control is entitled to seek compensation from AIM Honesty.

According to relevant agreements, including the Agreement on the Transfer of the Shares of Dalian Hanxin Bio-Pharmaceuticals Co., Ltd. between the Company’s subsidiary, Lhasa Meihua, and AIM Vaccine Co., Ltd., Lhasa Meihua shall be responsible for solving the realization of the non-operating creditor’s right and the settling of debts for AIM Honesty in respect of its former shareholder, Tibet Yiyuan Industry Co., Ltd. (hereinafter referred to as “Tibet Yiyuan”). Based on that, AIM Honesty gave the aforementioned Notice on Repaying Debts to Lhasa Meihua. According to relevant documents, including the share transfer agreement between Lhasa Meihua and AIM Honesty’s former shareholder, Tibet Yiyuan, Tibet Yiyuan shall be responsible for realizing the non-operating creditor’s rights and settling debts for AIM Honesty. Based on the aforementioned relevant agreements, the related parties have agreed that Tibet Yiyuan and its related parties shall inherit the aforementioned debts arising from the right of recourse and the interest.

In December 2021, according to the copy of the complaint, the notice of appearance, and other relevant documents forwarded by AIM Honesty from the service of the Kunming Intermediate People’s Court regarding the case of contractual dispute in which Kunming Sunwise Industry Co., Ltd. (holding 100% of the shares of Sunwise Measure and Control, hereinafter referred to as “Sunshine Industry”) filed a lawsuit against AIM Honesty and the third party, Sunwise Measure and Control, which was its shareholder, Sunwise Industry entered the bankruptcy and liquidation proceedings as ruled by the Kunming Intermediate People’s Court on March 15, 2019, and the court designated Yunnan Zhenxu Law Firm as the administrator. The administrator for Sunwise Industry filed a lawsuit, citing the fact that Sunwise Measure and Control failed to claim compensation from AIM Honesty after performing the guarantee obligation and demanded payment from AIM Honesty to Sunwise Measure and Control for the receivables as well as the interest and the fund occupation fee. As previously stated, in accordance with the provisions of relevant agreements, the Company has reached an agreement with all related parties that Tibet Yiyuan and its related parties inherit all debts arising from the right of recourse and the interest.

On October 18, 2022, the Kunming Intermediate People’s Court entered the following judgement: 1) the Defendant AIM Honesty Bio-Pharmaceuticals Co., Ltd. repay 28,967,179.55 yuan to the third person

Kunming Sunwise Measure and Control Technology Co., Ltd. within 10 days of the entry into force of the judgement; 2) the Defendant AIM Honesty Bio-Pharmaceuticals Co., Ltd. pay the fund occupation fee to the third person Kunming Sunwise Measure and Control Technology Co., Ltd. within 10 days of the entry into force of the judgement, using 28,967,179.55 as the basis for the period from August 17, 2021 until the date of payment, based on the loan prime rate; and 3) other claims made by the Plaintiff Kunming Sunwise Industry Co., Ltd. be rejected.

On June 30, 2023, the Yunnan High People’s Court issued a judgment with Document No. (2023) YMZ No. 324, ruling to reject the appeal and uphold the original judgment. AIM Honesty has applied for a retrial with the Supreme People’s Court in respect of the above dispute. On March 26, 2024, the Supreme People’s Court issued Civil Ruling No. (2023) ZGFMZ No. 1737, deciding that: (1) the case would be retried by the Supreme People’s Court; and (2) the enforcement of the original judgment would be suspended during the retrial. On October 10, 2024, the case was heard by the Supreme People’s Court.

On August 22, 2025, the Supreme People’s Court issued a judgment with the reference number [(2024) Supreme Court Civil Rehearing No. 209], with the following outcome: 1) To set aside the civil judgment of the Yunnan Highe People’s Court (2023) Yun Min Zhong No. 324; 2) To set aside the civil judgment of the Kunming Intermediate People’s Court of Yunnan Province (2021) Yun 01 Min Chu No. 4275; 3) AIM Honesty shall repay 3,342,226.4 yuan to Sunwise Measure and Control Technology Co., Ltd. within 10 days from the effective date of this judgment, along with fund occupation fees calculated on the principal amount of 3,342,226.4 yuan (calculated from August 17, 2021, until the date of full repayment, based on the Loan Market Quote Rate published by the National Interbank Funding Center); 4) Dismiss the other claims brought by Sunwise Industry Co., Ltd..

The aforementioned amounts totaling RMB 3,819,514.65 were paid in full in November 2025. The difference of RMB 28,618,647.27 from the previously accrued amount was recognized as non-operating income for the current period.

2. Litigation related to Shandong Fufeng Fermentation Co., Ltd.

Shandong Fufeng Fermentation Co., Ltd. (“Shandong Fufeng”) filed a lawsuit against the Company and its subsidiary Xinjiang Meihua over a dispute concerning trade secrets related to xanthan gum production. Through multiple trials of the court, under the auspices of the enforcement judge of the Jinan Intermediate People’s Court, in early March 2025, the Company and its wholly-owned subsidiary Xinjiang Meihua reached an enforcement settlement agreement with Shandong Fufeng regarding the trade secrets for the production of xanthan gum involved in the case. For details, please refer to the relevant announcements issued by the Company.

3. Litigation related to Ajinomoto Co., Inc. of Japan

Ajinomoto Co., Inc. of Japan has filed a lawsuit against the Company and its wholly-owned subsidiaries—Tongliao Meihua, Xinjiang Meihua, and Jilin Meihua—alleging patent infringement. The Guangdong Highe People’s Court has accepted the case. For further details, please refer to the relevant announcements issued by the Company.

As of the date of this report, the case has not yet been heard in court. The Company is actively defending itself in accordance with the law and taking necessary legal measures to resolutely safeguard the legitimate rights and interests of the Company and its shareholders. The Company will continue to monitor the progress of the case and fulfill its information disclosure obligations in a timely manner.

X. Alleged Violations of and Punishments on the Listed Company as well as its Directors, Officers, Controlling Shareholder, and Actual Controller, and the Rectifications √ Applicable Not applicable

On November 7, 2025, the Company received written notice from its controlling shareholder, Mr. Meng Qingshan, stating that he had received a “Criminal Judgment” issued by the Langfang Intermediate People’s Court of Hebei Province, which ruled as follows: The defendant, Meng Qingshan, was found guilty of manipulating the securities market and sentenced to three years’ imprisonment, suspended for five years, along with a fine (the probationary period shall be calculated from the date the judgment takes effect, and the fine shall be offset by the administrative penalty fines already paid).

Mr. Meng Qingshan has not held any position with the Company since his retirement in January 2017. The aforementioned matter concerns Mr. Meng Qingshan personally and has no relation to the Company. Currently, the Company’s production and business operations are proceeding normally. This matter will not affect the Company’s equity structure, corporate governance, or production and business operations.

XI. Credit Statuses of the Company as well as its Controlling Shareholder and Actual Controller during the Reporting Period  Applicable √ Not applicable XII. Significant Related-Party Transactions (I). Related-party transactions related to day-to-day operations 1. Matters that were disclosed in provisional announcements and did not progress or change subsequently  Applicable √ Not applicable

1. Matters that were disclosed in provisional announcements and did not progress or change subsequently Applicable √Not applicable

2. Matters that were disclosed in provisional announcements but progressed or changed subsequently

√ Applicable Not applicable 1) Related-party transactions concerning the purchase of commodities or the receiving of labor services

2) Related-party leases Where the Company is the lessor

3. Significant related-party transactions not previously disclosed in provisional announcements

(II). Related-party transactions concerning the purchase or sales of assets or shares

1. Matters that were disclosed in provisional announcements and did not progress or change subsequently  Applicable √ Not applicable 2. Matters that were disclosed in provisional announcements but progressed or changed subsequently  Applicable √ Not applicable

2. Matters that were disclosed in provisional announcements but progressed or changed subsequently Applicable √Not applicable

3. Significant related-party transactions not previously disclosed in provisional announcements  Applicable√ Not applicable

4. Where it involves agreements on performance targets, the Company should disclose the accomplishment of performance targets during the Reporting Period  Applicable √ Not applicable (III). Significant related-party transactions concerning joint outbound investment

1. Matters that were disclosed in provisional announcements and did not progress or change subsequently  Applicable √ Not applicable 2. Matters that were disclosed in provisional announcements but progressed or changed subsequently  Applicable√ Not applicable 3. Significant related-party transactions not previously disclosed in provisional announcements  Applicable √ Not applicable (IV). Related-party dealings of creditor’s right and debts 1. Matters that were disclosed in provisional announcements and did not progress or change subsequently  Applicable √ Not applicable 2. Matters that were disclosed in provisional announcements but progressed or changed subsequently  Applicable √ Not applicable

2. Matters that were disclosed in provisional announcements but progressed or changed subsequently Applicable √Not applicable

3. Significant related-party transactions not previously disclosed in provisional announcements  Applicable surd Not applicable

(V). Finance business between the Company and related finance companies, the Company’s holding finance companies, and related parties

 Applicable √ Not applicable (VI). Miscellaneous  Applicable √ Not applicable XIII. Major Contracts and Performance (I). Trusteeship, contracting, and lease matters 1. Trusteeship  Applicable √ Not applicable 2. Contracting  Applicable √ Not applicable 3. Leases  Applicable √ Not applicable

(II). Guarantees

√Applicable Not applicable

Unit: Yuan Currency: RMB

(III). Cash asset management through trusteeship

1. Entrusted financing

(1). Overview of entrusted financing

√ Applicable Not applicable

Unit: ‘0000 yuan Currency: RMB

Other information  Applicable √ Not applicable (2). Single entrusted financing √ Applicable Not applicable

Unit: ‘0000 yuan Currency: RMB

Other information  Applicable √ Not applicable

(3). Impairment provisions for entrusted financing

 Applicable √ Not applicable

2. Entrusted loans

(1). Overview of entrusted loans

 Applicable √ Not applicable Other information  Applicable √ Not applicable

(2). Single entrusted loans

 Applicable √ Not applicable Other information  Applicable √ Not applicable

(3). Impairment provisions for entrusted loans

 Applicable √ Not applicable

3. Other information  Applicable √ Not applicable (IV). Other major contracts  Applicable √ Not applicable

XIV. Progress of the use of raised funds

 Applicable √ Not applicable

XV. Other Important Matters That Have a Major Effect on Investors’ Value Judgement and Investment Decision-Making

√ Applicable Not applicable

1. Progress of share repurchases

On December 29, 2025, the Company convened the first meeting of its 11th Board of Directors, at which the “Proposal on the Repurchase of Company Shares via Centralized Auction Trading” was reviewed and approved. The Board agreed that the Company may use its own funds to repurchase its shares via centralized auction trading for the purpose of subsequently implementing an employee stock ownership plan or equity incentive program. The total repurchase amount shall be no less than RMB 30 million (inclusive) and no more than RMB 50 million (inclusive), with a repurchase price not exceeding RMB 15 per share. The repurchase period shall not exceed 12 months from the date the Board of Directors approved this share repurchase plan (i.e., December 29, 2025, to December 28, 2026). For specific details, please refer to the relevant announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn).

As of the end of March 2026, the Company has not yet conducted any share repurchases and will implement this repurchase plan at an appropriate time based on market conditions.

2. Implementation Status of the Management Shareholding Increase Plan

A total of 76 members, including certain directors, officers, and other key management personnel (or technical leaders) of the Company, driven by their confidence in the Company’s future prospects and recognition of its long-term investment value, and with the aim of maintaining stability in the capital markets and boosting investor confidence, plan to increase their holdings of the Company’s shares through purchases on the secondary market for a period not exceeding 12 months starting from January 14, 2026. The total amount of shares to be purchased is expected to be no less than RMB 303.75 million (including transaction costs) and no more than RMB 350.15 million (including transaction costs). They have committed not to sell any of their existing shares in the Company during the implementation of this share purchase plan, and not to sell the shares acquired through this plan by any means for a period of 24 months following the full completion of the plan and the Company’s lawful public announcement thereof. For specific details, please refer to the “Announcement on the Share Purchase Plan by the Company’s Directors, Officers, and Other Key Management Personnel” (Announcement No. 2026-003) disclosed by the Company on January 15, 2026, on the Shanghai Stock Exchange website (www.sse.com.cn).

3. Sale of the Thailand Plant

In July 2025, the Company successfully completed the acquisition of Kyowa Hakko’s food and pharmaceutical amino acid and HMO businesses, thereby acquiring multiple overseas production facilities, including the one in Thailand. To focus on core business development and optimize resource allocation, and following a careful evaluation, the Company decided to sell 100% of the equity in the

Thai factory to Novonesis, a globally renowned biotechnology company, in order to further optimize its global production capacity layout and concentrate on the business of high-end amino acid raw materials produced through synthetic biology fermentation. The transaction was completed in early April 2026. Following the completion of the transaction, the Company no longer holds any equity in the Thai company.

Novonesis is a global biotechnology giant headquartered in Denmark. Formed through the official merger of Novozymes and Chr. Hansen in January 2024, it is one of the world’s largest suppliers of industrial enzymes and microbial solutions. This successful transaction has laid a solid foundation for broader collaboration between these two leading companies in the biotechnology sector. It will enable both parties to achieve mutual benefits based on trust and cooperation, jointly driving the high-quality development of the global biotechnology industry.

Section 6 Share Changes and Shareholders

I. Changes in Share Capital (I). Table of share changes 1. Table of share changes

Unit: share

2. Explanation of Changes in Share Capital

√ Applicable Not applicable

The Company held the 13th meeting of the tenth session of the Board of Directors and the second extraordinary general meeting of shareholders in 2024 on September 23, 2024 and October 11, 2024, respectively, at which the Proposal on Repurchasing the Company’s Shares by Means of Centralized Bidding was reviewed and approved, with the repurchased shares to be canceled for the purpose of reducing the registered capital. On October 12, 2024, the Company disclosed the Repurchase Report on the Repurchase of Shares by Means of Centralized Bidding, and carried out the first repurchase on October 23, 2024. For details, please refer to the relevant announcements disclosed on the website of the Shanghai Stock Exchange (www.sse.com.cn).

On September 4, 2025, the Company released the Announcement on the Implementation Results of Share Repurchase and Changes in Share Capital (Announcement No. 2025-054). The Company had completed the share repurchase plan, having repurchased a total of 48,547,100 shares, accounting for 1.70% of the total share capital of 2,852,788,750 shares at the time. The average repurchase price was RMB 10.13 per share, and the total amount paid was RMB 492.017 million (excluding transaction fees). The repurchased shares were canceled on September 4, 2025, at China Securities Depository and Clearing Corporation Limited, and the total share capital of the Company changed from 2,852,788,750 shares to 2,804,241,650 shares. On March 18, 2026, the Company completed the relevant industrial and commercial registration procedures and obtained a renewed business license issued by the Market Supervision Administration of the Tibet Autonomous Region.

3. Effect of share changes on financial indicators for the past year and most recent reporting period, including earnings per share and net assets per share (if applicable)  Applicable √ Not applicable

4. Other information that the Company deems necessary to disclose or as required by the securities regulatory body  Applicable √ Not applicable

(II). Changes in restricted sales  Applicable √ Not applicable

II. Issue and Listing of Securities √ Applicable Not applicable

Unit: share Currency: RMB

Explanation of the issue of securities as of the Reporting Period (for bonds with different interests rates during the term, please provide explanation separately):  Applicable √ Not applicable

(II). Changes in the Company’s total shares, shareholder structure, and asset and liability structure

√ Applicable Not applicable

Upon the Company’s application, the Company canceled 48,547,100 repurchased shares with China Securities Depository and Clearing Corporation Limited on September 4, 2025. Consequently, the Company’s total issued share capital was reduced from 2,852,788,750 shares to 2,804,241,650 shares.

(III). Shares Held by Internal Staff

 Applicable √ Not applicable

III. Overview of Shareholders and Actual Controller

(I). Total number of shareholders

(II). Shares held by the top ten shareholders and the top ten holders of tradable shares (or holders of non-restricted shares) as of the end of the Reporting Period

Unit: Share

Participation of shareholders holding 5% or more, top ten shareholders, and top ten holders of unrestricted outstanding shares in securities lending through the stock lending and borrowing (SLB)  Applicable surd Not applicable

Changes in the Top Ten Shareholders and Top Ten Holders of Unrestricted Outstanding Shares Due to Stock Lending and Borrowing (SLB) Activities  Applicable surd Not applicable

Number of shares held by the top ten holders of restricted shares and the restrictions  Applicable surd Not applicable

(III). Strategic investors or general legal persons becoming top ten holders due to the allotment of new shares  Applicable √ Not applicable

IV. Information of Controlling Shareholder and Actual Controller

(I). Information of controlling shareholder

1. Legal person  Applicable √ Not applicable

2. Natural person

√ Applicable Not applicable

3. Explanation of circumstance where the Company does not have a controlling shareholder  Applicable √ Not applicable

4. Explanation of changes in controlling shareholder during the Reporting Period  Applicable √ Not applicable

5. Diagram of the property right and control relationship between the Company and its controlling shareholder √ Applicable Not applicable

(II). Information of actual controller

1. Legal person  Applicable √ Not applicable

2. Natural person

√ Applicable Not applicable

3. Explanation of circumstance where the Company does not have an actual controller  Applicable √ Not applicable

4. Explanation of changes in the Company’s control during the Reporting Period  Applicable √ Not applicable

5. Diagram of the property right and control relationship between the Company and its actual controller

√ Applicable Not applicable

6. Actual controller controlling the Company through trust or other asset management methods  Applicable √ Not applicable

(III). Other information of controlling shareholder and actual controller

surd Applicable Not applicable Wang Aijun, He Jun, Wang Ailing, Wang Aimin, Wang Aidi, and the controlling shareholder Meng Qingshan are acting in concert

V. Total number of pledged shares of the Company’s controlling shareholder or top shareholder and the persons acting in concert accounting for more than 80% of the Company’s total shares  Applicable surd Not applicable

VI. Corporate shareholders holding more than 10% of the shares  Applicable √ Not applicable

VII. Explanation of decrease of holding of shares due to share restrictions  Applicable √ Not applicable

VIII. Implementation of share repurchase during the reporting period

√ Applicable Not applicable

Unit: Yuan Currency: RMB

IX. Information on Preferred Shares

 Applicable √ Not applicable

Section 7 Information on Securities

I. Corporate Bonds (including Enterprise Bonds) and Non-Financial Corporate Debt Financing Instruments

 Applicable √ Not applicable

II. Information of Convertible Debentures  Applicable √ Not applicable

Section 8 Financial Report

I. Audit Report

√ Applicable Not applicable

RSMSZ No. [2026] 518Z0527

To all shareholders of Meihua Holdings Group Co., Ltd.:

I. Audit Opinion

We have audited the financial statements of Meihua Holdings Group Co., Ltd. (hereinafter referred to as "Meihua Bio"), including the consolidated and parent Company’s balance sheets as of December 31, 2025, as well as the consolidated and parent Company’s income statements, the consolidated and parent Company’s cash flow statements, the consolidated and parent Company’s statement of changes in equity, and related notes to the financial statements for the year 2025.

We believe that the accompanying financial statements have been formulated in accordance with the Accounting Standards for Business Enterprises in all material respects and present fairly the consolidated and parent Company’s financial position of Meihua Bio as of December 31, 2025, and the consolidated and parent Company’s operating results and cash flows for the year 2025.

II. Basis for Audit Opinion

We conducted our audit in accordance with the provisions specified in the Auditing Standards for Certified Public Accountants of China. The section "Responsibilities of Certified Public Accountants for the Audit of Financial Statements" of the audit report further explains our responsibilities under these standards. In accordance with the China Code of Ethics for Certified Public Accountants and the China Independence Standards for Certified Public Accountants, we are independent of Meihua Bio and have complied with the provisions of the Independence Standards applicable to the audit of financial statements of public interest entities, and have fulfilled our other professional ethics responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

III. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

(I) Revenue recognition

1. Matter Description

Meihua Bio is primarily engaged in the production of amino acid products, with operating revenue for the year 2025 amounting to RMB 2,420,867.51 ten thousand. For accounting policies related to revenue, please refer to Note III, 27. Revenue Recognition Principles and Measurement Methods of the consolidated financial statements, and for the book amount of operating revenue, please refer to Note V, 49. Operating Revenue and Operating Costs of the consolidated financial statements. As revenue is one of the key performance indicators for Meihua Bio, there is inherent risk that the Company’s management (hereinafter referred to as “management”) may manipulate revenue recognition to achieve specific targets or expectations. Therefore, we identified revenue recognition as a key audit matter.

2. Audit Response

The procedures we implement for revenue recognition primarily include:

(1) Understanding, assessing, and testing the management's internal control over the recognition of operating revenues;

(2) Selecting samples to examine sales contracts and conducting interviews with the management to identify contract terms related to the transfer of control of goods and to evaluate whether revenue recognition policies comply with the Accounting Standards for Business Enterprises;

(3) Selecting samples to examine supporting documents related to the recognition of revenue from the main businesses, including sales contracts, sales invoices, shipping documents, export customs declaration forms, and bank payment connection records, to assess whether revenue recognition complies with the Company's accounting policies for revenue recognition;

(4) Performing independent confirmation procedures for sales revenue from significant customers to confirm the authenticity and completeness of revenue;

(5) For sales revenue cutoff testing before and after the balance sheet date, select samples and, in conjunction with goods shipment orders, export customs declaration forms, and other supporting documents, evaluate whether the revenue has been recorded in the appropriate accounting period.

(6) Conducting examinations of sales revenue after the balance sheet date to identify whether there are instances of revenue reversal or substantial sales returns;

(7) Perform sample checks on post-period payments.

Based on the results of these procedures, we did not identify any irregularities in revenue recognition.

(II) Business Combinations

1. Matter Description

In 2025, Meihua Bio completed a business combination under non-common control involving Kyowa’s food amino acids, pharmaceutical amino acids, and human milk oligosaccharides (HMO)

businesses, and included them in the scope of consolidation for the 2025 financial statements. The consolidated financial statements recognized identifiable assets of RMB 1,779,029,000, identifiable liabilities of RMB 183,139,400, negative goodwill, which was recognized as non-operating income of RMB 831,441,000. For accounting policies related to the business combination, refer to Note III, 6.(2) “Business Combinations Under Non-Common Control” in the Notes to the Consolidated Financial Statements. For the book amount of identifiable assets, identifiable liabilities, and negative goodwill, refer to Note VII, 1. “Business Combinations Under Non-Common Control.” With the assistance of external appraisers, management assessed the fair value of the identifiable assets and liabilities of Kyowa’s food amino acid, pharmaceutical amino acid, and human milk oligosaccharide (HMO) businesses as of the acquisition date. The process of determining the fair value of identifiable assets and liabilities involved judgments regarding the replacement cost and depreciation rate of identifiable assets. Because the process of determining the fair value of identifiable assets and liabilities involves significant judgments regarding relevant parameters and key assumptions, and because the accounting treatment of the business combination of Kyowa Hakko’s food amino acids, pharmaceutical amino acids, and human milk oligosaccharides (HMO) businesses has a significant impact on the financial statements, we have identified this matter as a key audit matter.

With regard to the accounting treatment for the consolidation of Kyowa’s food amino acids, pharmaceutical amino acids, and human milk oligosaccharides (HMO) businesses, the audit procedures we performed primarily included:

(1) Obtaining and reviewing relevant documents, such as the share purchase agreement, board resolutions related to the share acquisition, and payment vouchers for the purchase price, to verify the specific details of the transaction; (2) Understanding the professional qualifications of the external valuation experts engaged by management and assessing their independence and competence; (3) With the assistance of internal valuation experts, assessing the reasonableness of the valuation approach and methods, as well as the replacement cost and depreciation rates of the relevant assets; (4) Reviewing the calculation process used by management to recognize negative goodwill based on the valuation results of identifiable assets and liabilities, and verifying the business combination accounting treatment as of the acquisition date.

Based on the procedures performed, we found no irregularities in the business combination.

IV. Other Information

The management is responsible for other information. Other information includes the information included in Meihua Bio's 2025 annual report, but excludes the financial statements and our audit report.

Our audit opinion on the financial statements does not cover other information, and we do not express any form of assurance conclusion on other information.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit process, or appears to be materially

misstated.

Based on the work we have performed, if we determine that there is a material misstatement of other information, we are required to report that fact. In this regard, we have no matters to report.

V. Responsibilities of the Management and Governance for Financial Statements

The management is responsible for preparing financial statements in accordance with the Accounting Standards for Business Enterprises to ensure fair presentation, and for designing, implementing, and maintaining necessary internal controls to prevent material misstatements in the financial statements arising from fraud or error.

In preparing the financial statements, the management is responsible for assessing the Company's ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the going concern assumption unless the management intends to liquidate the Company, cease operations, or has no realistic alternative.

The governance is responsible for overseeing the financial reporting process of Meihua Bio.

VI. Responsibilities of Certified Public Accountants for the Audit of Financial Statements

Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatements arising from fraud or error, and to issue an audit report containing audit opinion. Reasonable assurance is a high level of assurance, but it does not guarantee that an audit conducted in accordance with the auditing standards will always detect a material misstatement when it exists. Misstatements can arise from either fraud or error, and it is reasonably expected that individual or aggregated misstatements may affect the economic decisions made by users based on the financial statements, such misstatements are generally considered material.

During the audit in accordance with the auditing standards, we exercise professional judgment and maintain professional skepticism. Additionally, we perform the following procedures:

(1) Identify and assess the risks of material misstatement of the financial statements due to fraud or error, design and implement audit procedures to address these risks, and obtain sufficient and appropriate audit evidence as the basis for our audit opinion. The risk of failing to detect a material misstatement due to fraud is higher than the risk of failing to detect one due to error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or override of internal controls.

(2) Understand the internal controls relevant to the audit in order to design appropriate audit procedures. (3) Evaluate the appropriateness of the accounting policies selected by the management and the reasonableness of accounting estimates and related disclosures. (4) Come to a conclusion regarding the appropriateness of the management's utilization of the going concern assumption. Additionally, based on the audit evidence obtained, conclude whether significant uncertainties exist regarding matters or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that there is a significant uncertainty, the auditing standards require us to draw attention to users of the report in our audit report to the relevant disclosures in the financial statements; if the disclosures are inadequate, we should issue a qualified opinion. We

come to our conclusion based on information available up to the date of our audit report. However, future events or conditions may result in the Company being unable to continue as a going concern.

(5) Evaluate the overall presentation, structure, and content of the financial statements and whether they fairly reflect the relevant transactions and events.

(6) Obtain sufficient and appropriate audit evidence regarding the financial information of Meihua Bio’s entities or business activities to express an opinion on the financial statements. We are responsible for directing, supervising, and performing the group audit and bear full responsibility for the audit opinion.

We communicate with the governance about matters related to the planned scope of the audit, timing schedule, and significant audit findings, including the communication of significant internal control deficiencies identified during the audit.

We also provide the governance with a statement regarding compliance with professional ethics requirements related to independence and communicate to the governance all relationships and other matters that might reasonably be seen as compromising our independence as well as relevant preventive measures (if applicable).

From the matters communicated with the governance, we determine those matters that are of most significance in the audit of the financial statements for the current period and therefore constitute the key audit matters. We describe these matters in our audit report unless laws or regulations preclude public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in the audit report if doing so would reasonably be expected to outweigh the public interest benefits of such communication.

RSM China CPA LLP (Special General Partnership)

Chinese Certified Public Accountant: Gong Chenyan (Project Partner)

Beijing , China

Chinese Certified Public Accountant: Li Qianqian

April 21, 2026

II. Financial Statements

Consolidated Balance Sheet

December 31, 2025

Prepared by: Meihua Holdings Group Co., Ltd.

Unit: Yuan Currency: RMB

Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing

Parent Company’s Balance Sheet

December 31, 2025

Prepared by: Meihua Holdings Group Co., Ltd.

Unit: Yuan Currency: RMB

Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing

Consolidated Income Statement

January to December 2025

Unit: Yuan Currency: RMB

For the current period, in cases of merger of enterprises under the same control, the net profit realized by the merged entity prior to the merger is: RMB 0 yuan, and the net profit realized by the merged entity in the previous period is: RMB 0 yuan.

Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing

Parent Company’s Income Statement

January to December 2025

Unit: Yuan Currency: RMB

Consolidated Cash Flow Statement

January to December 2025

Unit: Yuan Currency: RMB

Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing

Parent Company’s Cash Flow Statement

January to December 2025

Unit: Yuan Currency: RMB

Unit: Yuan Currency: RMB

Consolidated Statement of Changes in Owner's Equity January to December 2025

Head of the Accounting Institution: Wang Ailing

Parent Company’s Statement of Changes in Owner’s Equity

January to December 2025

Unit: Yuan Currency: RMB