CompanyCode:600873Shortname:MeihuaBio
MeihuaHoldingsGroupCo.,Ltd.
AnnualReport2024
ThisisanEnglishtranslationfromtheAnnualReport2024,incaseofanyinconsistency,theChineseVersionshallprevail.
ImportantInformationI.TheCompany’sboardofdirectors,boardofsupervisors,directors,supervisors,andofficersguaranteethatthecontentsofthisannualreportaretrue,accurate,andcompletewithoutanyfalserecords,misleadingstatements,ormaterialomissionsandbearjointandseverallegalliability.II.AlloftheCompany’sdirectorshaveattendedtheboardmeeting.III.Zandar(Shenzhen)CPAsLLP(SpecialGeneralPartnership)(formerlyknownasDaHuaCPAsLLP(SpecialGeneralPartnership))hasissuedanunqualifiedauditreportfortheCompany.IV.WangAijun,theprincipaloftheCompany,WangLihong,theaccountingprincipal,andWangAiling,theprincipaloftheaccountingbody(theaccountingofficer),herebydeclarethattheyguaranteethetruthfulness,accuracy,andcompletenessofthefinancialreportintheannualreport.V.ProfitdistributionplanorcapitalreserveconversionplanfortheReportingPeriodasapprovedbytheBoard
Upondeliberationandapprovalofthe18
thmeetingofthe10
th
sessionoftheboardofdirectors,theprofitdistributionplan(proposal)for2024isasfollows:TheCompanyplanstodistributecashdividendsbasedonthetotalsharecapitalregisteredontheequitydistributionrecorddate(afterdeductingsharesinthesharerepurchaseaccount).Acashdividendof0.4206yuanpershare(inclusiveoftax)willbedistributedtoallshareholders.AsofDecember31,2024,theCompanyhadatotalsharecapitalof2,852,788,750shares,basedonwhichtheestimatedtotalcashdividenddistributionamountsto1.2billionyuan(inclusiveoftax).
Theplanisyettobesubmittedtothegeneralmeetingfordeliberation.TheamountthatisactuallydistributedwillbesubjecttothenotificationonequitydistributionpublishedbytheCompany.IfthereisanychangeintheCompany’stotalsharecapitalbeforetheregistrationdateofequitydistribution,thetotalamounttobedistributedwillremainunchanged,andthedistributionproportionpersharewillbeadjustedaccordingly.
InNovember2024,theCompanyexecutedthe2024interimprofitdistribution,whichwasapprovedattheCompany’ssecondextraordinarygeneralmeetingof2024.Basedonthetotalsharecapitalregisteredontheequitydistributionrecorddate(November21,2024)of2,852,788,750shares,afterdeducting15,589,700sharesintherepurchaseaccountatthattime,thetotalnumberofsharesparticipatinginthedistributionwas2,837,199,050shares.Acashdividendof0.17596yuanpershare(inclusiveoftax)wasdistributed,amountingtoatotalinterimcashdividendof499,233,544.84yuan(inclusiveoftax).
Insummary,thetotalcashdividendsexpectedtobedistributedbytheCompanyfor2024amounttoapproximately1,699,116,493.09yuan(inclusiveoftax).Togetherwith571,185,981.88yuanusedforsharebuybackandcancellationin2024,thetotalamountrepresentsapproximately83%ofthenetprofitattributabletoshareholdersofthelistedcompanyfor2024.VI.RiskDisclosureonForward-LookingStatements
√Applicable?NotapplicableThisannualreportinvolvesforward-lookingdescriptionssuchasfutureplans,andsuchstatementsdonotconstitutematerialcommitmentsforinvestors.Investorsareremindedtopayattentiontotheriskofinvestment.VII.Anyoccupationoffundsbythecontrollingshareholderorotheraffiliatesfornon-operatingpurposesNoVIII.Anyexternalguaranteethatviolatesthedecision-makingproceduresNo
IX.Isitthecasethatmorethanhalfofthedirectorscannotguaranteethetruthfulness,accuracy,andcompletenessoftheannualreportdisclosedbytheCompany?NoX.WarningofKeyRisksForthedetailsoftherisksfacingtheCompany,refertothe“PotentialRisks”partin“Section3DiscussionandAnalysisbytheManagement”andthe“RisksRelatedtoFinancialInstruments”partin“Section10FinancialReport”.XI.Miscellaneous?Applicable√Notapplicable
Contents
Section1Definitions ...... 5
Section2CompanyOverviewandKeyFinancialIndicators ...... 9
Section3DiscussionandAnalysisbytheManagement ...... 13
Section4CorporateGovernance ...... 51
Section5EnvironmentalandSocialResponsibility ...... 71
Section6SignificantMatters ...... 83
Section7ShareChangesandShareholders ...... 94
Section8InformationonPreferredShares ...... 100
Section9InformationonSecurities ...... 100
Section10FinancialReport ...... 101
| Listofdocumentsforreference | FinancialstatementssignedandsealedbytheCompany’sprincipal,theaccountingprincipal,andtheprincipaloftheaccountingbody(theaccountingofficer) |
| TheoriginaloftheauditreportsealedbytheCPAsfirmandsignedandsealedbythecertifiedpublicaccountants | |
| TheoriginalsoftheCompany’sdocumentsandannouncementsdisclosedonthewebsiteoftheShanghaiStockExchangeduringtheReportingPeriod |
Section1Definitions
I.Definitions
Inthisreport,thetermsbelowhavethefollowingmeanings,unlessthecontextotherwiserequires:
| Definitionsofcommonterms | ||
| Company,theCompany,thelistedcompany,MeihuaBio,MeihuaGroup,orMeihuaCompany | means | MeihuaHoldingsGroupCo.,Ltd.,whosestocknameis“MeihuaBio”andstockcodeis600873. |
| XinjiangMeihua | means | XinjiangMeihuaAminoAcidCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany. |
| WujiaquJianlong | means | WujiaquJianlongChemicalCo.,Ltd.,awhollyownedsubsidiaryofXinjiangMeihua. |
| XinjiangBaseorXinjiangCompany | means | theproductionbaseintheWujiaquIndustryParklocatedintheXinjiangUygurautonomousregionwhereXinjiangMeihuaislocated. |
| TongliaoMeihua | means | TongliaoMeihuaBiotechCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany. |
| TongliaoJianlong | means | TongliaoJianlongChemicalCo.,Ltd.,awholly-ownedsubsidiaryofTongliaoMeihua. |
| TongliaoBaseorTongliaoCompany | means | theproductionbaselocatedinTongliaooftheInnerMongoliaautonomousregionasformedbyTongliaoMeihuaandTongliaoJianlong. |
| JilinMeihua | means | JilinMeihuaAminoAcidCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany. |
| JilinBase,BaichengBase,orJilinCompany | means | theproductionbaselocatedinBaichengofJilinwhereJilinMeihuaAminoAcidCo.,Ltd.islocated. |
| Threeproductionbasesorallproductionbases | means | theCompany’sproductionbasesinTongliaoofInnerMongolia,WujiaquofXinjiang,andBaichengofJilin. |
| HongKongMeihua | means | MeihuaGroupInternationalTrade(HongKong)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany. |
| HengqinMeihua | means | ZhuhaiHengqinMeihuaBiotechCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany. |
| HongKongHoldings | means | HONGKONGPLUMHOLDINGLIMITED,awholly-ownedsubsidiaryofHengqinMeihua. |
| CaymanCompany | means | CAYMANPLUMHOLDINGLIMITED,awholly-ownedsubsidiaryofHongKongHoldings. |
| SingaporeCompany | means | PLUMBIOTECHNOLOGYGROUPPTE.LTD.,awholly-ownedsubsidiaryofCaymanCompany. |
| LhasaMeihua | means | LhasaMeihuaBio-investmentHoldingsCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany. |
| ZandarorZandar(Shenzhen)CPAsLLP | means | Zandar(Shenzhen)CPAsLLP(SpecialGeneralPartnership)(formerlyknownasDaHuaCPAsLLP(SpecialGeneralPartnership)) |
| CSRC | means | theChinaSecuritiesRegulatoryCommission. |
| SSEortheStockExchange | means | theShanghaiStockExchange. |
| CSDCShanghai | means | ChinaSecuritiesDepositoryandClearingCo.,Ltd.ShanghaiBranch. |
| Environmentalauthorities | means | theMinistryofEcologyandEnvironmentofthePeople’sRepublicofChinaandtheenvironmentalauthoritiesauthorizedbyit. |
| Aminoacidsforanimalnutrition | means | theaminoacidsusedasfeedsupplementforanimalnutrition,whichcanenhancetheeffectsoffeed,improvetheutilizationoffeed,andsupplementandbalancenutrition.TheaminoacidsforanimalnutritionproducedbytheCompanyincludelysine,threonine,methionine,andvaline. |
| Lysine | means | 2,6-Diaminohexanoicacid,theonlyaminoacidwithside-chainprimaryamineinproteins.Itisanaminoacidandketogenicaminoacidessentialformammals.ThecommonL-lysineisoneofthe20aminoacidsthatmakeupproteins.Depending |
| oncontent,lysineisclassifiedintoL-lysinehydrochloride(commonlyknownasthe98%lysine)andL-lysinesulfate(commonlyknownasthe70%lysine).Theadditionoflysinetofeedimprovesmeatquality,increasestheratiooflean,andrefinesmeattexture.Itincreasestheutilizationoffeedproteinsandreducethedosageofcrudeprotein.Italsoreducespigletdiarrhea,cutsfeedingcosts,andincreaseseconomicreturns. | ||
| Threonine | means | 2-Amino-3-hydroxybutanoicacid,analiphaticα-aminoacidthatcontainsanalcoholichydroxyl.Itisanaminoacidandketogenicaminoacidessentialformammals.ThecommonL-threonineisoneofthe20aminoacidsthatmakeupproteins.Threonineisanessentialaminoacid.Threonineisoftenaddedtothefeedforpigletsandpoultry.Itisthefirstlimitingaminoacidinpigfeedandthethirdlimitingaminoacidinpoultryfeed. |
| Valine | means | 2-amino-3-methylbutanoicacid,abranched-chainnon-polarα-aminoacidthatcontainsfivecarbonatoms.Itisanaminoacidandglycogenicaminoacidessentialformammals.ThecommonL-valineisoneofthe20aminoacidsthatmakeupproteins.Theadditionofvalinetosowfeedcanhelpincreaselactationyield.Italsohelpsimproveanimals’immunityandaffectsendocrine. |
| Starchbyproductproteinpowder,feedfiber,germ,mycoprotein,etc. | means | Cornglutenmealisabyproductofthemanufactureofstarchfrommaizegraininthefoodindustryoritspurificationinthebrewingindustry.Itisrichinproteinnutrients,hasaspecialtasteandcolor,andcanbeusedasfeed.Cornhuskpowder(feedfiber)isabyproductofthemanufacturingprocessofmanufacturersengagedinthedeepprocessingofcorn.Itisproducedfrommaizegrainsbeingsoaked,putintostarchproduction,washed,squeezed,anddried.Itsmaincomponentsincludefiber,starch,andproteins. |
| Foodtasteandtraitimprovingproducts | means | Thefoodadditives(flavorenhancers)producedbytheCompany.Itreferstoartificialornaturalsubstancesthatareaddedtofoodforthepurposeofimprovingfoodquality,color,smell,andtaste,aswellasforpreservationandprocessing. |
| MSG | means | 99%MSGreferstomonosodiumglutamate.ThekeycompositionofMSGisglutamicacidmonosodiumsalt,whichisproducedfromthemicrobialfermentation,purification,andrefinementofsaccharicorstarchrawmaterials.Thefinishedproductiswhitecolumnarcrystalorcrystallinepowder.Asabasicflavoringagent,MSGnotonlyenhancesthetasteofdishesandstimulatesappetitebutalsostimulatesthesecretionofdigestivejuice,therebyhelpingfooddigestionandabsorptioninhumanbodies. |
| Disodium5’-ribonucleotide | means | asubstancecomposedofdisodium5’-inosine(IMP)anddisodium5’-guanosine(GMP)ina1:1proportion.ItismostlyusedincondimentsorcondimentblendswithMSGtoenhancetaste. |
| Disodiuminosinate | means | isaflavorenhancerproducedfromglucoseasthekeyrawmaterialthroughmicrobialfermentation,extraction,andrefinement. |
| Trehalose | means | asafeandreliablenaturalsugarwiththesuperbabilitytomaintaincellviabilityandbiomacromolecularactivity.Itisknownasthe“sugaroflife”inthesciencecommunity.Withamoderatelysweettaste,itservesasauniquefoodingredientthatpreventsfooddeterioration,inhibitsnutrientdeterioration,preservesfoodflavors,andimprovesfoodquality.Itisalsoanimportantingredientforcosmeticsthatmaintaincellviabilityandpreservemoisture.Itisgenerallyrecognizedassafe(GRAS)bytheFDA. |
| Aminoacidsforhumanmedicalpurposes | means | arealsoknownaspharmaceuticalaminoacids.TheCompany’spharmaceuticalaminoacidsaremainlydividedintotwoparts.Oneisaminoacidproducts,includingL-glutamine,branched-chainaminoacids(L-isoleucine,L-valine,andL-leucine),andL-proline,etc.,whicharemainlyusedasupstreamrawmaterialsforsportsnutritionfood,foodforspecialmedicalpurposes,anddrugs.Theotherpartispharmaceuticalintermediaterawmaterials,includingL-prolineandnucleoside(inosine,guanosine,andadenosine),whicharemainlyusedasupstreamrawmaterialsfordrugsthattreatchronicdiseases(suchashypertension,diabetes,hepatitisB,etc.). |
| Proline | means | L-proline(knownasprolineforshort)isoneofthe18aminoacidsforthehumanbodytosynthesizeproteins.Itisanimportantrawmaterialforaminoacid |
| transfusionsaswellasakeyintermediateforsynthesizingfirst-lineantihypertensivedrugs,suchascaptoprilandenalapril.Itiswidelyappliedinfoodandpharmaceuticalindustries.TheCompanyproducesL-prolinethroughcornfermentation,whichisfreeofallthechemicalreagentsaddedinsynthesisandisthussafer. | ||
| Glutamine | means | withthescientificnameof2-amino-4-formamidebutyricacid,istheamideofglutamicacid.L-glutamineisthecodingaminoacidinproteinsynthesisandanaminoacidessentialformammals.Invivo,itcanbeconvertedfromglucose.Glutaminepreventsmusclebreakdownandpromotesmusclegrowth.Itisanimportantnutritionsupplementforbodybuildersandbodybuildingenthusiasts.Italsoimproveshumanimmunityandantioxidantcapacity.Ithassuperbhealthcareandevenmedicaleffectsforthegastrointestinalanddigestivesystems. |
| Isoleucine | means | L-isoleucineisoneofthe20commonaminoacidsthatmakeupproteins.Itcontainstwoasymmetriccarbonatomsandisanaminoacidandketogenicaminoacidessentialformammals. |
| Leucine | means | L-leucineisoneofthe20commonaminoacidsthatmakeupproteins.Itisanaminoacidandaketogenicandglycogenicaminoacidessentialformammals.Leucine,isoleucine,andvalineareallbranched-chainaminoacids,whichhelppromotemusclerecoveryaftertraining.Inparticular,leucineisaveryeffectivebranched-chainaminoacidthateffectivelypreventsmusclelossasitisabletobreakdownfasterintoglucose. |
| Pullulan | means | awater-solublepolysaccharideproducedfromthefermentationofAureobasidiumpullulans.Pullulancanbeprocessedintoavarietyofproducts.Withsuperbfilm-formingproperties,itformshighlystablepullulanfilm.Italsohasexcellentoxygenisolationperformance.Inpharmaceuticalandfoodindustries,itiswidelyusedincapsulemoldingagents,thickeners,adhesives,andfoodpackaging.Pullulanhasbeenusedasfoodaccessoriesformorethan20yearsinJapanandisgenerallyrecognizedassafe(GRAS)bytheFDA. |
| Xanthangum | means | amonosporepolysaccharidefromthefermentationofpseudoxanthomonas.Itoffersmanyfunctionsduetoitsspecialmacromolecularstructureandcolloidalcharacteristics.Itiswidelyusedindifferentfieldsasemulsifiers,stabilizers,gelthickeners,impregnatingcompounds,andfilmmoldingagents.Xanthangumisamicrobialpolysaccharideinmassproductionwithbroadapplicationsaroundtheworld. |
| Bio-organicfertilizers | means | thefertilizerscontainingorganicsubstancesthatprovidemultipleinorganicandorganicnutrientsforcropsandfertilizeandimprovesoil. |
| HMO | means | HumanMilkOligosaccharides,whichareatypeofcomplexoligosaccharidecomposedofmonosaccharides,derivatives,sialicacid,andotherstructuralunitslinkedbyglycosidicbonds.Over150typesofHMOstructureshavebeenidentifiedinhumanmilk.Asthethirdmostabundantsolidcomponentinhumanbreastmilk,afterlactoseandfat,HMOplaysacrucialphysiologicalrole.HMOsarevitalforinfantgrowthanddevelopment,bothintheshortandlongterm.Theypromotethebalanceoftheintestinalmicroecologyininfants,stimulatethegrowthofbeneficialbacteria,inhibitthegrowthofharmfulbacteria,preventthecolonizationofpathogenicbacteria,regulatetheimmunesystem,andsupportcognitivedevelopmentininfants. |
| KirinHoldings | means | KirinHoldingsCompany,Limited,acompanylistedontheTokyoStockExchangewiththestockcode2503.T.Foundedin1907andheadquarteredinTokyo,Japan,itisagloballeaderinbeverageandfoodmanufacturing,withbusinessoperationsspanningmultiplesectors,includingbeer,softdrinks,healthproducts,andpharmaceuticals. |
| KyowaHakkoBio | means | KyowaHakkoBioCo.,Ltd.,awholly-ownedsubsidiaryofKirinHoldings.Itisagloballeaderinthebiotechnologyandfermentationindustries,specializinginthedevelopmentandproductionofhigh-qualityaminoacidsandothernovelsyntheticbiologyproductsforpharmaceutical,food,andindustrialapplications. |
| Fermentation | means | areactionprocessinwhichmassivemetabolitesareproducedandaccumulatedthroughthegrowthandchemicalchangesofmicroorganisms(oranimal/plant |
| cells). | ||
| Traditionalfermentation | means | mainlyinvolvesmatrixconversion(theconvertedmatrixistheproductitself).Traditionalfermentationgivesuniquetastesandnutrientstotheproductandchangesthetextureoftheproduct,suchasthefermentationprocessinvolvedintheproductionofwine,bread,yogurt,fermentedbeancurd,andpickledvegetables.Traditionalfermentationisgenerallynaturalfermentation.Inthiscase,therearemanykindsoffermentationmicroorganisms,anditisusuallyimpossibletoconductpureculture.Thespecificmicroorganismtypesandproportionsarenotevenknown.Thereisalsotraditionalfermentationinvolvingpuremicroorganisms. |
| Precisionfermentation | means | aprocessthatusesmicroorganismsascellfactoriestoproducespecificfunctionalcomponents.Ingeneralterms,precisionfermentationisaprocessofgeneticreprogramming.Itissyntheticbiology.Scientistschangethegenesofselectedmicroorganismsbasedonspecificdesigns,andtheirgenesareprogrammedtoproducespecificfermentationproducts. |
Section2CompanyOverviewandKeyFinancialIndicators
I.CompanyInformation
| Chinesename | 梅花生物科技集团股份有限公司 |
| ShortChinesename | 梅花生物、梅花集团 |
| Englishname | MeiHuaHoldingsGroupCo.,Ltd |
| Abbreviation | MEIHUABIO,MeiHuaGroup |
| Legalrepresentative | WangAijun |
II.ContactPersonandContactInformation
| BoardSecretary | |
| Name | LiuXianfang |
| Address | 66HuaxiangRoad,LangfangEconomicandTechnologicalDevelopmentZone,HebeiProvince |
| Tel | 0316-2359652 |
| Fax | 0316-2359670 |
| mhzqb@meihuagrp.com |
III.BasicProfile
| RegisteredAddress | Unit5,Building11,YangguangXincheng,158JinzhuWestRoad,Lhasa,XizangAutonomousRegion |
| Changesintheregisteredaddress | 189JinzhuWestRoad,Lhasa(announcementpublishedonJanuary23,2018;changeapprovedatthefourthextraordinarygeneralmeetingof2017) |
| Officeaddress | 66HuaxiangRoad,LangfangEconomicandTechnologicalDevelopmentZone,HebeiProvince |
| Postalcodeoftheofficeaddress | 065001 |
| Website | ThecompanycompletedafullupgradeofitsofficialwebsiteinFebruary2025.Globaluserscannoweasilyaccessthelatestcompanynewsandbusinessinformationviathenewwebsiteathttps://www.meihua.group.Thepreviouswebsite,http://www.meihuagrp.com,willbedeactivatedat24:00BeijingTimeonFebruary4,2026. |
| mhzqb@meihuagrp.com |
IV.PlacesofInformationDisclosureandReportPlacement
| NamesandwebsitesofmediawheretheCompanydisclosesannualreports | ShanghaiSecuritiesNews(www.cnstock.com)andSecuritiesTimes(www.stcn.com) |
| ThestockexchangewebsitewheretheCompanydisclosesannualreports | www.sse.com.cn |
| PlacewheretheCompanypreparesandkeepsannualreports | TheCompany’ssecuritiesdepartmentandShanghaiStockExchange |
V.Company’sStockInformation
| Company’sStockInformation | ||||
| Stocktype | StockExchangeforthelistingoftheCompany’sstock | Stockname | Stockcode | Stocknamebeforechange |
| A-share | ShanghaiStockExchange | MeihuaBio | 600873 | MeihuaGroup |
VI.OtherRelevantInformation
| CPAfirmappointedbytheCompany(domestic) | Name | Zandar(Shenzhen)CPAsLLP(SpecialGeneralPartnership)(formerlyknownasDaHuaCPAsLLP(SpecialGeneralPartnership)) |
| Officeaddress | 11thFloor,MediaGroup(SZMG)Tower,No.9Pengcheng1stRoad,FuxinCommunity,LianhuaStreet,FutianDistrict,Shenzhen |
| Namesofsigningaccountants | LiuQianqian,LiQianqian |
VII.KeyAccountingDataandFinancialIndicatorsfortheLastThreeYears
(I)KeyAccountingData
Unit:yuanCurrency:RMB
| Keyaccountingdata | 2024 | 2023 | +(%) | 2022 |
| Revenue | 25,069,288,294.62 | 27,760,612,259.07 | -9.69 | 27,937,152,798.85 |
| Netprofitattributabletotheshareholdersofthelistedcompany | 2,740,427,215.56 | 3,180,949,695.48 | -13.85 | 4,406,241,981.92 |
| Netprofitattributabletotheshareholdersofthelistedcompanyafterdeductingnon-recurringprofitorloss | 2,696,673,816.43 | 3,083,801,516.17 | -12.55 | 4,220,155,225.29 |
| Netcashflowsfromoperatingactivities | 4,626,714,790.47 | 5,228,937,084.88 | -11.52 | 5,654,954,446.36 |
| Attheendof2024 | Attheendof2023 | +(%) | Attheendof2022 | |
| Netassetsattributabletotheshareholdersofthelistedcompany | 14,574,945,300.93 | 14,163,014,813.67 | 2.91 | 13,515,990,374.75 |
| Totalassets | 23,809,558,011.66 | 23,157,179,855.25 | 2.82 | 24,491,133,112.07 |
(II)KeyFinancialIndicators
| Keyfinancialindicators | 2024 | 2023 | +(%) | 2022 |
| Basicearningspershare(yuan/share) | 0.94 | 1.06 | -11.32 | 1.44 |
| Dilutedearningspershare(yuan/share) | 0.94 | 1.06 | -11.32 | 1.43 |
| Basicearningspershareafterdeductingnon-recurringprofitorloss(yuan/share) | 0.92 | 1.03 | -10.68 | 1.38 |
| Weightedaveragereturnonequity(%) | 19.04 | 23.48 | Decreaseby4.44percentagepoints | 35.95 |
| Weightedaveragereturnonequityafterdeductingnon-recurringprofitorloss(%) | 18.74 | 22.76 | Decreaseby4.02percentagepoints | 34.43 |
NotestotheCompany’skeyaccountingdataandfinancialindicatorsforthelastthreeyearsasattheendoftheReportingPeriod?Applicable√Notapplicable
VIII.DifferencesinAccountingDataunderDomesticandForeignAccountingStandards
(I)DifferencesinthenetprofitandthenetprofitattributabletotheshareholdersofthelistedcompanyinthefinancialreportdisclosedinaccordancewithboththeinternationalaccountingstandardsandtheChineseaccountingstandards?Applicable√Notapplicable(II)DifferencesinthenetprofitandthenetprofitattributabletotheshareholdersofthelistedcompanyinthefinancialreportdisclosedinaccordancewithboththeforeignaccountingstandardsandtheChineseaccountingstandards?Applicable√Notapplicable(III)Explanationofdifferencesbetweendomesticandforeignaccountingstandards?Applicable√NotapplicableIX.KeyFinancialIndicatorsfor2024byQuarter
Unit:yuanCurrency:RMB
| Q1(January-March) | Q2(April-June) | Q3(July-September) | Q4(October-December) | |
| Revenue | 6,486,560,309.24 | 6,156,157,744.13 | 6,038,067,422.69 | 6,388,502,818.56 |
| Netprofitattributabletotheshareholdersofthelistedcompany | 751,704,565.79 | 722,119,224.13 | 521,497,858.37 | 745,105,567.27 |
| Netprofitattributabletotheshareholdersofthelistedcompanyafterdeductingnon-recurringprofitorloss | 636,707,025.33 | 666,143,862.29 | 466,245,366.69 | 927,577,562.12 |
| Netcashflowsfromoperatingactivities | -30,402,361.94 | 2,266,220,485.06 | 1,849,893,800.63 | 541,002,866.72 |
Explanationofdifferencesbetweenthequarter-baseddataandthedatainthedisclosedperiodicreports?Applicable√NotapplicableX.Non-recurringItemsandAmounts
√Applicable?Notapplicable
Unit:yuanCurrency:RMB
| Non-recurringitem | Amountfor2024 | Notes(ifapplicable) | Amountfor2023 | Amountfor2022 |
| Gainsorlossesfromthedisposalofnon-currentassets,includingthewrite-offsoftheaccruedprovisionsforassetimpairment | -35,923,166.36 | -38,915,902.24 | -14,259,233.56 | |
| Governmentgrantsrecognizedintheprofitorloss,excludinggovernmentgrantsthatarecloselyrelatedtotheCompany’snormaloperations,conformwithnationalpolicies,areenjoyedinaccordancewithestablishedstandards,andhavecontinuousimpactontheCompany’sprofitorloss | 205,965,697.82 | 240,560,349.82 | 176,066,538.92 | |
| Gainsorlossesfromfairvaluechangesarisingfromthefinancialassetsandfinancialliabilitiesheldbynon-financialenterprisesand | 30,307,317.28 | -35,150,749.48 | 46,017,976.33 |
gainsorlossesfromthedisposaloffinancialassetsandfinancialliabilities,exceptfortheeffectivehedgingassociatedwiththeCompany’snormaloperations,
| Fundpossessionfeescollectedfromnon-financialenterprisesthatarerecognizedintheprofitorloss | ||||
| Gainsorlossesfromtheentrustedinvestmentormanagementofassets | ||||
| Gainsorlossesfromexternalentrustedloans | ||||
| Lossesonassetsarisingfromforcemajeurefactors,suchasnaturaldisasters | ||||
| Reversalofprovisionsfortheimpairmentofaccountsreceivableforwhichtheimpairmenttestisconductedseparately | 1,861,963.30 | |||
| GainsfromtheinvestmentcostsoftheCompanyfortheacquisitionofsubsidiaries,associates,andjointventuresbeinglessthanthefairvalueoftheinvestees’identifiablenetassetsduetotheCompanyattheacquisitionofinvestment | ||||
| NetprofitorlossofsubsidiariesformedthroughbusinesscombinationsundercommoncontrolfortheperiodfromthebeginningoftheReportingPeriodtothecombinationdate | ||||
| Gainsorlossesfromtheexchangeofnon-monetaryassets | ||||
| Gainsorlossesfromdebtrestructuring | ||||
| Non-recurringexpensesoftheCompanyarisingfromthediscontinuationofrelevantoperatingactivities,suchasexpensesforstaffresettlement | ||||
| Once-offeffectofadjustmentstotaxandaccountinglawsandregulationsontheprofitorloss | ||||
| Sharepaymentexpensesrecognizedonceoffduetothecancellationorchangeoftheshareincentiveplan | ||||
| Forsharepaymentincash,gainsorlossesfromchangesinthefairvalueofstaffremunerationpayableafterthevestingdate | ||||
| Gainsorlossesfromchangesinthefairvalueofinvestmentpropertythatissubsequentlymeasuredinthefairvaluemodel | ||||
| Gainsfromtransactionswithobviouslyunfairtransactionprices | ||||
| GainsorlossesfromcontingenciesirrelevanttotheCompany’snormaloperations | -1,549,545.75 | -45,888,616.17 | ||
| Trusteeshipincomefromtrusteeshipbusiness | ||||
| Othernon-operatingincomeandexpenditurethantheabove | -105,868,972.90 | -1,380,228.88 | 11,936,886.89 | |
| Otherprofitorlossitemsthatfallwithinthedefinitionofthenon-recurringprofitorloss | ||||
| Less:effectofincometax | 49,177,930.96 | 23,938,637.04 | 33,675,411.95 | |
| effectofminorityinterest(aftertax) | ||||
| Total | 43,753,399.13 | 97,148,179.31 | 186,086,756.63 |
IftheCompanydefinesanyitemsnotlistedintheExplanatoryAnnouncementonInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublicNo.1–Non-recurringGainsorLossesasnon-recurringitemswhichinvolvesignificantamountsordefinesanynon-recurringitemslistedinthe
ExplanatoryAnnouncementonInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublicNo.1–Non-recurringGainsorLossesasrecurringitems,theCompanyshouldprovidethereasons.?Applicable√NotapplicableXI.ItemsMeasuredatFairValue
√Applicable?Notapplicable
Unit:yuanCurrency:RMB
| Item | Openingbalance | Closingbalance | Change | Amountofimpactontheprofit |
| Financialassetsheldfortrading | 172,376,801.33 | 312,033,611.07 | 139,656,809.74 | 35,240,396.29 |
| Derivativefinancialassets | 200,000.00 | -200,000.00 | -6,560,205.83 | |
| Derivativefinancialliabilities | 250,000.00 | 297,500.00 | 47,500.00 | |
| Otherequityinstrumentinvestments | 512,691,350.00 | 441,294,280.00 | -71,397,070.00 | 2,816,000.00 |
| Accountsreceivablefinancing | 60,013,169.98 | 26,723,054.99 | -33,290,114.99 | -7,013.14 |
| Total | 745,531,321.31 | 780,348,446.06 | 34,817,124.75 | 31,489,177.32 |
XII.Miscellaneous
?Applicable√Notapplicable
Section3DiscussionandAnalysisbytheManagementI.DiscussionandAnalysisofBusinessPerformance
In2024,leveragingitsdiversifiedportfolio,economiesofscale,continuousR&Dinnovation,andrefinedmanagement,thecompanydemonstratedstrongresilienceandcounter-cyclicality.Thecompanyrecordedannualrevenueof25.069billionyuan,ayear-on-yeardecreaseof9.69%.ThedeclinewasprimarilyduetolowersellingpricesofMSG,xanthangum,andcornby-products,reducingrevenuebyapproximately4.046billionyuan.However,increasedsalesofthreonine,xanthangum,andfeed-gradevalinecontributedtoarevenueincreaseofapproximately1.355billionyuan.Netprofitattributabletoshareholdersofthelistedcompanywas2.74billionyuan,down13.85%year-on-year,includinganadditional233millionyuaninnon-operatingexpensesduetosettlementpayments.
Duringthereportingperiod,thecompanysuccessfullyadvanceditsinternationalizationstrategybyacquiringKyowaHakkoBio’spharmaceuticalaminoacidbusiness.TheMESsystemupgradeattheJilinfacilitywassuccessfullyimplemented,acceleratingthecompany’sdigitalandintelligenttransformation.Meanwhile,theproductioncapacityexpansionofkeyproductsreachedfulloperation,significantlyenhancingscaleandefficiency.Theseachievementsfurtherreinforcedthecompany’sleadingpositionintheglobalaminoacidindustry.
1.AcceleratedGlobalExpansion,EmbarkingonaNewJourneyinOverseasMarkets
Duringthereportingperiod,thecompanymadebreakthroughprogressinitsinternationalstrategiclayout,significantlyacceleratingitsoverseasexpansion.Throughsystematicglobalmarketresearchandstrategicplanning,thecompanyconductedsiteselectionevaluationsinkeyregionsandsuccessfullyadvancedstrategicallysignificantindustrialacquisitionprojects.Theseinitiativesnotonlymarkedatangiblestepforwardinglobalexpansionbutalsolaidasolidfoundationforsustainableoverseasbusinessgrowth.In2024,thecompanyestablishedadedicatedoverseasprojectteamtoconductin-depthassessmentsofgreenfieldinvestmentopportunitiesacrossfivecontinents.Theteamscreenedover100countriesbasedonfactorssuchasrawmaterialsandenergyavailability,ultimatelyselectingninekeyregionsforfurtherevaluation.Theprojectteamconductedon-siteinvestigationsoftheselocations,analyzingcriticalfactorsincludingrawmaterials,energy,chemicalauxiliaries,transportation,andbusinessenvironment.Subsequentassessmentswillfurthercomparetheseregionstodeterminethefinalgreenfieldinvestmentlocationanddefineproducttypesandproductionscale,supportingthecompany’soverseasexpansionandglobalstrategicfoundation.
Ontheacquisitionfront,thecompanysignedthe“SharesandAssetsPurchaseAgreement”withKyowaHakko,committingapproximately500millionyuantoacquireitsfood-gradeandpharmaceuticalaminoacid,aswellasHMO(HumanMilkOligosaccharide)businessesandassets.Theacquisitionincludes:
Fullequityandrelatedassets(land,facilities,productionequipment,andpharmaceuticalproductcertifications)ofKyowaHakko’soperationalentitiesinShanghai,Thailand,andNorthAmerica.
Proprietarystrainsandintellectualpropertyrightsformorethantenpharmaceuticalaminoacids,includingarginine,histidine,glutamine,serine,hydroxyproline,valine,leucine,isoleucine,threonine,citrulline,andornithine.
Strains,productionlines,intellectualpropertyrights,regulatoryapprovals,andmarketlicensesformultipleHMOproducts,including2’-FL,3’-SL,and6’-SL.
AprofessionalteamhasbeenformedtointegrateKyowaHakko’sbusinessprocessesandoperationalsystems,ensuringefficientsynergyintechnology,resources,andmarketoperations.Thetransactionisprogressingaspertheagreedschedule.Uponcompletion,thecompany’sbusinessstructurewillextendalongtheindustrialchain,enhancingitscapacityforhigh-value-addedpharmaceuticalaminoacidfermentationandpurification.ItwillalsogainGMP(GoodManufacturingPractice)certificationsandaminoacidactivepharmaceuticalingredient(API)registrationsacrossmultipleglobalmarkets.Furthermore,theacquisitionwillintroduceaprecisionfermentationplatformforsyntheticbiologytoproducethreeHMOproducts,backedbyarobustintellectualpropertysystem.Strategically,theacquisitionwillprovidemultipledomesticandinternationalproductionentities,reinforcingthecompany’sglobalexpansionefforts.Post-acquisition,thecompanyplanstointroducenewproductioncapacitiesinoverseasfacilitiesforproductsfacinghightradebarriers,basedonmarketdemandandsupplydynamics.
Asinternationalexpansioncontinues,thecompanyispoisedtoenhanceChina'sinfluenceintheglobalbio-fermentationindustry,leveragingitseconomiesofscale,technologicaladvancements,andmanagementexpertisetofurthercementitsleadingpositionintheglobalmarketandcontributetoindustrydevelopment.
2.MESUpgradeDrivesDigitalandIntelligentTransformation,withInitialSuccessinLighthouseFactoryDevelopment
Duringthereportingperiod,thecompanyleverageddigitaltransformationasastrategicpivot,continuouslyadvancingtheintelligentupgradeofitsproductionmanagementsystem.Asthepioneerinthecompany’sjourneytowarda“LighthouseFactory,”theBaichengplantachievedabreakthroughinitssmartmanufacturinginitiatives.InAugust2024,theMES(ManufacturingExecutionSystem)wasfullyimplementedattheBaichengfacility,integratingdigitalintelligenceacrosssixkeyoperationalmodules:quality,safety,environmentalprotection,processmanagement,equipment,andproductionmanagement.Thistransformationshiftedproductionmanagementfromreactiveremediationtoproactivecontingencyplanning,significantlyenhancingthedigitalizationandtransparencyofproductionprocesses.
TheimplementationoftheMESsysteminproductionmanagementaimstostandardizeandinstitutionalizemanagementpoliciesandworkflows.Prioritizingproductionstability,theBaichengplanthasestablishedsmartproductionlinesandacentralizeddispatchandcommandcenter.LeveragingtheMESsystem,ithasrefineditsproductionmanagementframework,achievingend-to-endprocessmonitoring.Bytheendof2024,theMESsystematBaichenghadbeensystematicallydeployedacrossallproductlines,enablingseamlessintegrationofmanufacturingexecutiondataandbusinessoperations.ThroughaBI(BusinessIntelligence)visualizationplatformandanautomatedreportingsystem,thecompanyhasfullydigitalizedroutinemanagement,processmonitoring,andexceptionhandling,furtherenhancingthedigitalizationandintelligenceofproductionmanagement.
BuildingonthesuccessfulimplementationinJilin,thecompanywillcontinuetoadvancethedigitalizationandstandardizationofitsproductionsystemsin2025,extendingMESdeploymenttoitsTongliaoandXinjiangplants.EffortswillfocusonoptimizingSOPs(StandardOperatingProcedures)andworkflowsystems,enforcingunifieddatamanagement(“OneIntegratedDashboard”),anddrivingperformancetransformation.Theseinitiativeswillprovideasolidfoundationforcontinuousoperationalefficiencyimprovements,acceleratingthecompany’sprogresstowarditsLighthouseFactoryvision.
3.NewProjectsDriveBusinessExpansion,StrengtheningCompetitiveEdge
Thecompanyremainscommittedtothehigh-qualitydevelopmentofitscoreaminoacidbusiness.Forproductswithcostadvantages,continuoustechnologicaladvancements,andgrowingmarketdemand,thecompanyisdecisivelyexpandingproductioncapacitytoreinforceitsindustryleadership.Thecapacityexpansionprojectformonosodiumglutamate(MSG)inTongliaohasreachedfullproductionefficiency,whilethetechnologicalupgradesforisoleucine,valine,andxanthanguminXinjianghavebeenlaunchedasplanned.Additionally,constructionofthelysineprojectinBaichengofficiallycommencedinSeptember2024.Thesesuccessfulprojectadvancementshavesignificantly
enhancedthecompany’scompetitivenessinthebio-fermentationindustry.Duringthereportingperiod,thecompany’scapitalexpenditureonprojectsamountedtoapproximately2billionyuan.Throughouttheyear,thecompanymaintainedastrongcashflow,withcashdividendpayoutstotalingapproximately
1.697billionyuanandsharerepurchasesamountingto571millionyuan.Netcashflowfromoperatingactivitiesreached4.627billionyuan.
Inrecentyears,thecompanyhasconsistentlyexpandedproductioncapacityforitskeyproductstoincreasemarketshare.Comparedto2023,salesvolumeofthreoninein2024grewby25.31%year-over-year.Thecompany’scoreproducts,lysineandthreonine,havemaintainedaleadingglobalmarketshare.InQ42024,despitedecliningrawmaterialprices,thecompanyleverageditskeenmarketinsightandstrongmanagementcapabilitiestodriveupthepricesofthreonineandlysineagainstmarkettrends,therebyincreasingtheindustry’saverageprofitmarginandfosteringsustainableindustrygrowth.
Lookingahead,thecompanywillstrategicallyplancapacityexpansionsatitsoverseasproductionbases,particularlyforproductsfacingpotentialtradebarriers,adjustingproductioncapacitybasedonmarketsupplyanddemanddynamics.Bypreciselymanagingcapacitydeployment,thecompanywillcontinuetosolidifyitsleadershippositionintheindustry.
4.Multi-ProngedApproachtoBuildingaSyntheticBiologyApplicationPlatform,DrivingTechnologicalAdvancementsandEnhancingCompetitiveStrength
Toacceleratethestrategicgoalofbecomingaleadingenterpriseinsyntheticbiology,thecompanyhascontinuedtoincreaseR&Dinvestment.In2024,R&Dexpenditurereached733millionyuan,primarilyallocatedtofundamentalresearchandthepromotionofnewtechnologiesandstrains.Additionally,thecompanyestablishedpilot-scalesyntheticbiologyapplicationfacilitiesinBaichengandotherlocations,successfullycreatinganindustry-leadingintelligentpilot-scaleplatform.Thisinitiativeeffectivelyovercomesthechallengesofindustrializingsyntheticbiologytechnologies,achievingfullintegrationoftheentireprocess—fromintelligentstraindevelopmenttolaboratory-to-engineeringscale-up,industrializedintelligentproduction,andmarketapplication—significantlyenhancingindustrialintelligentmanufacturingcapabilities.Thecompanywillcontinuetoleverageitscorestrengthsinindustrialization,engineering,andcostmanagement,usingthenewpilotfacilitiesaskeyplatformstoacceleratethelarge-scaleproductionandcommercializationofnewtechnologiesandprocesses,solidifyingitsleadershipinthesyntheticbiologysector.
Tobuildacomprehensivesyntheticbiologyapplicationplatform,thecompany’s2024R&Dfocushasbeenonteamdevelopment,intellectualproperty(IP)strategy,researchmodelrefinement,andcollaborationwithleadingglobalsyntheticbiologyscientists.Atthesametime,thecompanyhasbeenrapidlyimplementingandscalingupnewstrainsoriterativetechnologiesforexistingproductsinlarge-scaleproduction,providingastrongtechnologicalfoundationformaintainingproductcompetitiveness.
IntermsofR&Dteamdevelopment,thecompanysuccessfullyrecruitedtop-tierprofessionalsfromrenownedinstitutionssuchasTsinghuaUniversity,ShanghaiJiaoTongUniversity,theChineseAcademyofSciences,TianjinUniversity,andNankaiUniversity.Theseexpertsspecializeincutting-edgefieldssuchasgeneediting,fermentationengineering,andenzymaticcatalysis,fillinggapsin
extractionandpurificationresearch.Additionally,fivenewdoctoralresearchstudioswereestablished,leveragingplatform-driveninstitutionaladvantagestofosterinnovation,furtherstrengtheningthecompany’scorecompetitivenessandinjectingstrongmomentumintoitslong-termgrowth.
RegardingIPstrategy,in2024,thecompanyexpandeditsportfolioofinventionpatentstomultiplecountries,includingAustralia,Brazil,andJapan,establishingaglobalintellectualpropertyprotectionsystem.Bytheendof2024,thecompanyhadfilednearly240patentapplications,markinga33.5%increasecomparedto2023,coveringkeyareassuchasstraindesign,fermentationcontrol,anddownstreamprocessing.Intermsoftechnologycollaboration,thecompanyactivelypursueda“goglobal”strategy,forgingdeeppartnershipswithleadingsyntheticbiologyscientistsandresearchinstitutionsworldwide,yieldingsignificantresults.In2024,thecompanyreachedcooperationagreementswithmultipledomesticandinternationalorganizationsandtop-tierscientists.Thesecollaborationsaimtoaddresscriticalchallengesinproductionanddevelopmentbyintegratingcutting-edgesyntheticbiologytechnologies,therebyenhancingthecompany’sR&Dandinnovationcapabilities.Ontheimplementationofnewtechnologies,thecompanymadephasedtechnicalbreakthroughsbyinvestingindedicatedfundsandconductingpilottrials.In2024,thecompanysuccessfullyscaleduptheproductionofnewstrainsforinosine,guanosine,andglutamine,aswellasnewprocessesforglutamicacid,lysine,andthreonine.Theseinnovationsgeneratednearly100millionyuaninadditionalbenefitsforthecompany.Throughsyntheticbiologymodifications,themetabolicefficiencyofthenewstrainshassignificantlyimproved,reachinganindustry-leadinglevel.Meanwhile,thenewprocessesofferhighstabilityandlow-costadvantages,whichnotonlyenhanceproductionefficiencybutalsofurtherstrengthenthecompany’stechnologicalcompetitiveness.
5.BuildingaComprehensiveTalentDevelopmentSystemtoProvideaStrongTalentFoundationfortheGlobalizationStrategy
Talentisthecoredrivingforcebehindthecompany’srapiddevelopment.Forfourconsecutiveyears,thecompanyhasimplementedthe“ZhiyuanPlan,”focusingonbuildingadiverseandhigh-levelmanagementtalentpipeline.Theplanispersonallyoverseenbythecompany’scoreleadershipteam,whoserveascareermentors,guidingthedevelopmentofpotentialsuccessorsforvariousdepartmentsoverthenextfiveyearsthroughaone-on-onecoachingmodel,ensuringthesustainablegrowthofthemanagementteam.
Intermsoftalentacquisition,thecompanyinnovateditsrecruitmentstrategyin2024byfocusingonprofessionalfitandstrategicallytargetingkeyuniversities.Asaresult,morethan100master’sanddoctoralgraduatesweresuccessfullyrecruitedintothecompany’smanagementtraineeprogram.Simultaneously,thecompanyactivelyattractsoutstandinginternationalstudentsfromtopChineseuniversities.Thisinternationaltalentacquisitionstrategyprovidesstrongsupportforthecompany’sglobalexpansionplans.
Regardingtheconstructionofitstalentdevelopmentsystem,theHumanResourcesDepartmenthasinnovativelydevelopedauniquemanagementtraineeprogram.Theprogramadoptsa“three-
dimensionalintegrated”trainingmodel,whichcombines“onboardingtraining+seniormanagementmentorship+projectpractice.”Throughthiscomprehensive,multi-leveldevelopmentmechanism,thecompanycanaccuratelyidentifyhigh-potentialtalentandestablishfast-trackpromotionchannels.Forfrontlineemployees,thecompanyhasintroducedaninnovative“workshopinterestclass”program,combiningprofessionalskillstrainingwithengaginglearningactivities.Thiseffectivelyopensupcareerdevelopmentpathwaysforgrassrootsemployeesandcontributestothetechnicalsystembysupplyingskilledtalent.Duringthereportingperiod,thecompanyachievedcomprehensivetalentdevelopmentthroughavarietyofinitiatives,includingperformancemanagementforexecutives,technicalpromotions,employeecapabilitycertifications,workshopinterestclasses,theZhiyuanmanagementtraineeprogram,anda“smallsteps,quickwins”approach.Theestablishmentofthissystemnotonlyprovidesstrongsupportforthecompany’scurrentbusinessexpansionbutalsoreservesampletalentresourcesforfutureoverseasfactorydevelopment,ensuringthecompany’scontinuedcompetitiveadvantageintheglobalmarket.II.IndustryOverview
BasedontheGuidingCatalogueofKeyProductsandServicesforStrategicEmergingIndustries(2016Edition)issuedbytheNationalDevelopmentandReformCommission(NDRC),theCompany’smainproductsfallwithinthe“bio-manufacturingindustryofthebiologicalindustry.”Hence,theCompanyisinthebio-manufacturingindustry.AccordingtotheindustrialclassificationresultsforlistedcompaniesaspublishedbytheChinaAssociationforPublicCompanies,theCompanyisinthefoodproductionindustryofthemanufacturingindustry.
MeihuaBioisafullyintegratedsyntheticbiologycompanythatcoverstheentireprocessfromgenomeeditingtoproductcommercialization.
Syntheticbiologyprimarilyenablesproductmanufacturingthroughthedesignandoptimizationofbiosyntheticpathways,graduallyreplacingtraditionalchemicalsynthesisandextraction-basedproductionmethods.Asthistechnologyandlarge-scalebiomanufacturingcapabilitiescontinuetoadvanceandmature,biomanufacturedproductsaregainingclearadvantagesintermsofcost,environmentalimpact,andenergyefficiency,andareexpectedtoeventuallyreplacetraditionalmanufacturingmethodsaltogether.Recognizedasoneofthemostpromisinganddisruptivetechnologiesofthefuture,syntheticbiologyispoisedforrapiddevelopment,especiallywiththedeepintegrationofartificialintelligenceandbiotechnology,aswellasongoingbreakthroughsinnovelgenomeeditingtools.Theseforceswillacceleratetheemergenceofnewtechnologyplatforms,applications,andproducts.
Thecompanyholdsaleadingpositiongloballyinsyntheticbiology,particularlyinthelarge-scaleproductionofaminoacids.ItpossessesstrongapplicationR&Dcapabilitiesthatallowfortherapidconversionoftechnologicalachievementsintocommercialvalue.Withcorestrengthsinstrainengineering,processoptimization,engineeringdesign,andapplicationdevelopment,MeihuaBiohasestablishedafastandefficientpipelinefortransitioningnewtechnologiesandproductsfromlabtoclient.
Thecompany’slarge-scalebiomanufacturingcapabilityisacriticalassetfortheapplicationandcommercializationofsyntheticbiology,makingitarareresourceintheglobalsyntheticbiologysector.MeihuaBioisaworldleaderinthelarge-scaleproductionofaminoacidsusingsyntheticbiology,withstrongappliedresearchanddevelopmentcapabilitiesthatenabletherapidconversionoftechnologicalachievementsintocommercialvalue.Therapidprogressofsyntheticbiologyhassignificantlyenhancedstrainconstructionandtestingcapabilities,providingcrucialopportunitiestoimproveconstructionefficiencyandmeetthefast-evolvinganddiversedemandsofthemarket.Theaccelerateddevelopmentofhigh-performanceaminoacid-producingstrainsensuresthecompany’sabilitytoproducebulkaminoacidscost-effectivelywhilealsoexpandingthemarketforhigh-valuenicheaminoacids.
Lookingahead,MeihuaBiowillstrengthenitscollaborationwithleadingglobalbiotechnologyenterprisesandresearchinstitutions,focusingonidentifyingopportunitiesinfundamentalsyntheticbiologytechnologies,precisionfermentation,andnon-grainfermentation.Byleveragingitsgloballyleadingexpertiseinchassisengineering,processscaling,andlarge-scaleproduction,thecompanywillcontinuetodrivetheadoptionofcutting-edgeR&Dtechnologiesandthecommercializationofinnovativeproducts.III.OverviewoftheCompany’sBusinessesduringtheReportingPeriod
Thecompanyspecializesinthelarge-scaleproductionandinnovativeapplicationsofaminoacids.Upholdingits“AminoAcid+”developmentstrategy,ithascontinuouslyexpandeditsproductportfolioandbusinessfootprintsinceitsinception.Today,thecompanyhasbuiltacomprehensiveindustrialecosystemencompassinganimalnutritionaminoacids(suchaslysine,threonine,andvaline),foodflavorenhancers(includingmonosodiumglutamateanddisodium5′-ribonucleotide),pharmaceutical-gradeaminoacids(suchasglutamineandproline),colloidalpolysaccharides(includingxanthangumandtrehalose),andbulkby-products(suchascorngermandproteinpowder).
Withthreestate-of-the-artproductionbasesinTongliao,InnerMongolia;Wujiaqu,Xinjiang;andBaicheng,Jilin,alongwithtwoR&DinnovationcentersinLangfangandShanghai,thecompanyhasestablishedafullyintegratedindustrychaincoveringresearch,production,andsales.Itscoreproducts—includinglysine,MSG,threonine,xanthangum,disodium5′-ribonucleotide,andpharmaceutical-gradeaminoacids—rankamongtheworld’sleadersinbothproductioncapacityandtechnologicaladvancement,underscoringitsexcellenceandmarketleadershipintheaminoacidindustry.
TheproductsproducedbytheCompanyinclude:
?Aminoacidsforanimalnutrition:lysine,threonine,tryptophan,feed-gradelysine,MSGresidue,starchbyproductfeedfiber,corngerm,mycoprotein,etc.
?Foodtasteandtraitimprovingproducts:glutamicacid,monosodiumglutamate,Disodium5’-ribonucleotide,disodiuminosinate,food-gradexanthangum,trehalose,natamycin,etc.
?Aminoacidsforhumanmedicalpurposes:glutamine,proline,leucine,isoleucine,pharmaceuticalvaline,inosine,guanosine,adenosine,pullulan,VitaminB2,etc.
?Otherproducts:petroleum-gradexanthangum,bio-organicfertilizers,etc.
TheCompanyoperatesunderanintegratedbusinessmodelencompassingresearchanddevelopment,production,andsales.Duringthereportingperiod,therewerenomaterialchangestothismodel.IV.AnalysisofCoreCompetitivenessduringtheReportingPeriod
√Applicable?Notapplicable(I)YearsofDeepExpertiseinSyntheticBiology:Multi-ProductPortfolioandProductionCapacityDrivingStableGrowthAsagloballeaderintheaminoacidindustry,thecompanyhasestablishedanindustrialframeworkcenteredonaminoacidswhilefosteringthesynergisticdevelopmentofmultipleproductcategories.Leveragingitsstrengthsinsyntheticbiology,thecompanyhasbuiltafullyintegratedindustrychainencompassingresearch,production,andsales.Thishasresultedinadiversifiedproductportfolio,withcoreofferingsinanimalnutritionaminoacids,flavorenhancers,pharmaceutical-gradeaminoacids,andcolloidalpolysaccharides,formingahighlycompetitiveplatform-basedbusinessmodel.Intermsofproductioncapacity,thecompanydemonstratesstrongindustryleadership:itslysineandthreonineproductioncapacitiesrankfirstglobally,whileitsMSGproductioncapacityisthesecondlargestworldwide.Withthegradualcommissioningofcapacityexpansionprojectsforlysine,xanthangum,andotherproducts,thecompanyissettofurthersolidifyitsglobalmarketleadership.Adheringtoadual-focusedstrategyof“refinementandprecision”alongside“scaleandstrength,”thecompanycontinuestoexpandproductioncapacityacrossproductcategories,reinforcingitsindustrydominance.Thisstrategicapproach—spanningmultipleproductlinesandmarketsegments—notonlyensuresstableperformancegrowthbutalsosignificantlyenhancesresilienceagainstindustrycyclicality,layingasolidfoundationforsustainabledevelopment.Throughcontinuoustechnologicalinnovationandcapacityoptimization,thecompanyissteadilyadvancingtowarditsgoalofbecomingagloballyleadingbiotechnologyenterprise.(II)Comprehensive,FullyIntegratedIndustrialChainandHigh-EfficiencyOperationsDrivingCostAdvantagesAsanindustrypioneer,thecompanyhasestablishedasignificantcompetitiveedgethroughitsforward-lookingstrategicplanningandoutstandingoperationalmanagement.Itsproductionfacilitiesarestrategicallylocatedinkeyrawmaterialregionsrichincornandcoal,ensuringastablesupplychainwhilesignificantlyreducingprocurementandtransportationcosts.Eachfacilityisequippedwithadvancedintegratedresourceutilizationproductionlines,formingaclosed-loopindustrialchain—fromcornprocessing,in-housesteamsupply,andproductmanufacturingtowastewatertreatmentandbio-organicfertilizerproduction—achievingtieredenergyrecycling.Thisuniqueindustriallayouthaspositionedthecompanyasoneofthemostfullyintegratedandresource-efficientmodernmanufacturingenterprisesinChina.
Thankstoitsproximitytorawmaterialsourcesandafullyintegratedindustrialchain,thecompanyenjoyssubstantialadvantagesinprocurementcostsandresourceutilization.Comparedwithenterprises
lackinggeographicaladvantagesandindustrialchainintegration,thecompanymaintainsaclearcompetitiveedgeinproductioncostcontrol,securingastrongpositioninthehighlycompetitivemarket.Ontheoperationalfront,thecompanycontinuestoadvancethestandardizationofitsbusinesssegments,enhancingmanagementefficiencythroughsystematicimplementationandcontinuousoptimization.Duringthereportingperiod,thecompanymaintainedanimpressiveinventoryturnoverperiodofapproximately60days,reflectingitshighlyefficientinventorymanagement.Additionally,byadoptingacash-on-deliveryandadvancepaymentsalesmodel,thecompanykeptitsaccountsreceivableturnoverperiodataround10days—anindustry-leadinglevel.Thisexceptionaloperationalefficiencynotonlyreducesoverallmanagementcostsbutalsogeneratessubstantialcashflow,furtherstrengtheningthecompany’sfinancialstability.
(III)SustainedR&DAccumulationandStrongIndustrializationCapabilitiesEnsureIndustry-LeadingTechnicalIndicatorsWithyearsofdeepresearchandlarge-scaleproductionexperienceinbiologicalfermentation,thecompanyhasestablishedsignificantcompetitiveadvantagesinindustrialproductionandcostcontrol,demonstratingexceptionalabilitytorapidlytransformcutting-edgetechnologiesintocommercialvalue.Eachofthecompany’sproductionfacilitiesisequippedwithstate-of-the-artequipmentfrominternationallyrenownedbrandsorleadingindustrymanufacturers.Keyproductionequipmentmeetsworld-classstandards,ensuringpreciseprocessparametercontrol,superiorenergyefficiency,andadistinctemphasisonmodernintelligentmanufacturing.
Leveragingitslong-termtechnicalexpertiseinbiologicalfermentationandextensiveexperienceinconstructinglarge-scalefactories,thecompanyhasdevelopeduniqueadvantagesinengineeringdesign,projectconstruction,technicalperformancemanagement,environmentalgovernance,andresourcerecycling.Ithasbuiltacomprehensive“R&D–pilottesting–engineering–large-scaleproduction”chain,integratinggeneticengineering,metabolicengineering,andothermodernmolecularbiologytechnologies.Withaproprietaryhigh-performancestrainplatform,thecompanycontinuouslyoptimizesfermentationandextractionprocesses,supportedbystrongindustrializationcapabilities.Asaresult,itmaintainsindustry-leadingperformanceinkeymetricssuchasproductyield,productionefficiency,andproductquality,layingasolidfoundationforsustainedmarketcompetitiveness.
(IV)ACultureof“CollectiveManagementandSharedValueCreation”asaKeyDriverofBusinessSuccess
Since2017,thecompanyhasimplementedemployeestockownershipplans(ESOPs)andcontinuouslydeepenedtheirexecution,establishingasustainableandinstitutionalizedmechanism.Upholdingthephilosophyof“collectivemanagementandsharedvaluecreation,”thecompanyhasdevelopedacomprehensiveincentivesystemthatintegratesESOPs,diversifiedbonusstructures(includingbonuspools,project-basedrewards,andperformanceevaluations),fosteringauniquecultureofco-creation,sharing,andmutualsuccess.
Intermsoftalentincentives,thecompanyhas,since2017,introducedrollingequityincentivesandESOPstargetingdepartmentheadsandkeybusinesspersonnel,seamlesslyaligningorganizational
growthstrategieswithindividualcareerdevelopment.Thisdualempowermentapproachisreinforcedbya“responsibility-performance-reward”positivefeedbackloop,whichrecognizesandincentivizeshigh-performingandproactivemanagementleaders,fullyunlockingthepotentialandvalue-creationcapabilityofitscoreteams.Overtheyears,thecompanyhasbuiltamulti-tieredandmulti-dimensionalperformance-drivensystemthatalignswithitscultureofco-creationandsharedsuccess.Thissystemhasnotonlyplayedacrucialroleinachievingstrategicbusinessobjectivesbuthasalsoensuredthestabilityofthecoremanagementteam,establishingadistinctiveandsustainablelong-termincentiveframework.V.MajorBusinessPerformanceduringtheReportingPeriod
DuringtheReportingPeriod,theCompanyregisteredarevenueof25.069billionyuan,down
9.69%year-on-year;thenetprofitattributabletotheshareholdersofthelistedcompanywas2.74billionyuan,down13.85%year-on-year.(I)AnalysisofMainBusiness
1.AnalysisofchangesinrelevantitemsintheprofitstatementandthecashflowstatementUnit:yuanCurrency:RMB
| Item | Amountforthecurrentperiod | Amountforthecorrespondingperiodinthepreviousyear | Change(%) |
| Revenue | 25,069,288,294.62 | 27,760,612,259.07 | -9.69 |
| Operatingcosts | 20,036,698,814.74 | 22,297,122,025.25 | -10.14 |
| Sellingexpenses | 386,866,509.47 | 413,512,921.96 | -6.44 |
| Generalandadministrativeexpenses | 937,932,200.19 | 924,598,280.87 | 1.44 |
| Financialexpenses | -117,263,931.67 | -33,426,675.32 | -250.81 |
| R&Dexpenses | 382,903,265.05 | 314,222,682.89 | 21.86 |
| Netcashflowsfromoperatingactivities | 4,626,714,790.47 | 5,228,937,084.88 | -11.52 |
| Netcashflowsfrominvestmentactivities | -2,648,958,807.71 | -1,509,146,234.23 | -75.53 |
| Netcashflowsfromfinancingactivities | -2,738,052,283.69 | -3,108,097,192.17 | 11.91 |
Explanationofchangeinrevenue:DuringtheReportingPeriod,theCompany’srevenuedecreasedby9.69%year-on-yearto25.069billionyuan.
Mainreasons:Themarketsellingpricesofkeyproducts,includingMSG,xanthangum,andcornby-products,declinedduringtheReportingPeriod,offsettingtheincreaseinsalesvolumedrivenbythecapacityexpansionofthreonine,xanthangum,andfeed-gradevalinebytheCompany’ssubsidiaries.Explanationofchangeinoperatingcosts:DuringtheReportingPeriod,theCompany’soperatingcostsdecreasedby10.14%year-on-yearto20.037billionyuan.
Mainreasons:Althoughtheincreasedsalesvolumeofthreonine,xanthangum,andfeed-gradevalinedroveupsalescosts,theoveralldeclineinrawmaterialcostsandimprovedproductionefficiencyledtolowermanufacturingcosts,resultinginadecreaseintotaloperatingexpenses.
Explanationofchangeinsellingexpenses:DuringtheReportingPeriod,theCompany’sselling
expensesdroppedby6.44%year-on-year.
Mainreasons:Adecreaseinproductallocationsfromexternalwarehousesledtolowertransportationcosts,whileadeclineinfreightratesfurthercontributedtothereductioninexpenses.
Explanationofchangeingeneralandadministrativeexpenses:DuringtheReportingPeriod,theCompany’sgeneralandadministrativeexpensesincreasedby1.44%year-on-year.
Mainreasons:Theincreasewasmainlyduetoariseinlaborcosts.
Explanationofchangeinfinancialexpenses:DuringtheReportingPeriod,theCompany’sfinancialexpensesdroppedby250.81%year-on-year.
Mainreasons:Thedecreasewasprimarilydrivenbylowerinterestexpenses,areductionininterestincome,andincreasedexchangegains.
ExplanationofchangeinR&Dexpenses:DuringtheReportingPeriod,theCompany’sR&Dexpensesincreasedby21.86%year-on-year.
Mainreasons:TheCompanyincreaseditsR&Dinvestmentduringtheperiod.
Explanationofchangeinnetcashflowsfromoperatingactivities:DuringtheReportingPeriod,theCompany’snetcashflowsfromoperatingactivitiesdroppedby11.52%year-on-year.
Mainreasons:Thedeclinewasmainlyduetolowersalesrevenueresultingfromadropinproductmarketpricesfollowingadecreaseinrawmaterialprices.
Explanationofchangeinnetcashflowsfrominvestmentactivities:DuringtheReportingPeriod,theCompany’snetcashflowsfromoperatingactivitiesdroppedby11.52%year-on-year.Mainreasons:Thedeclinewasmainlyduetolowersalesrevenueresultingfromadropinproductmarketpricesfollowingadecreaseinrawmaterialprices.
Explanationofchangeinnetcashflowsfromfinancingactivities:DuringtheReportingPeriod,theCompany’snetcashflowsfromfinancingactivitiesincreasedby11.91%year-on-year.
Mainreasons:Althoughdividenddistributionincreased,anetincreaseinbankloanscontributedtotheoverallriseinfinancingcashflows.
DetailedexplanationofsignificantchangesintheCompany’sbusinesstype,profitcomposition,or
profitsourcesduringtheReportingPeriod
?Applicable√Notapplicable
2.AnalysisofRevenueandCosts
√Applicable?Notapplicable
TheCompanyachievedarevenueof25.069billionyuan,a9.69%decreasecomparedtothesameperiodlastyear.Operatingcostsamountedto20.037billionyuan,withgrossprofitdecreasingby431millionyuan.However,thegrossprofitmarginincreasedby0.39percentagepointscomparedtothesameperiodlastyear.
Themainfactorsforthechangeinrevenue:Theincreaseinsalesvolumeofthreonine,xanthangum,andfeed-gradevalinedrivenbythereleaseofproductioncapacityfromtheCompany’ssubsidiarieswasoffsetbythedeclineinmarketsellingpricesofkeyproductssuchasMSG,xanthangum,andcornby-products,leadingtoareductioninmainbusinessrevenue.
(1)MainBusinessPerformancebyIndustry,Product,Region,andSalesModel
Unit:yuanCurrency:RMB
| Mainbusinessperformancebyindustry | ||||||
| Byindustry | Revenue | Operatingcosts | Grossprofitmargin(%) | Changeinrevenuefromprioryear(%) | Changeinoperatingcostsfromprioryear(%) | Changeingrossprofitmarginfromprioryear(%) |
| Biologicalfermentation | 24,401,413,326.15 | 19,554,739,473.66 | 19.86 | -9.21 | -9.56 | 0.31 |
| Pharmaceuticalandhealth | 476,308,595.90 | 353,986,358.20 | 25.68 | -15.35 | -13.52 | -1.57 |
| Mainbusinessperformancebyproduct | ||||||
| Byproduct | Revenue | Operatingcosts | Grossprofitmargin(%) | Changeinrevenuefromprioryear(%) | Changeinoperatingcostsfromprioryear(%) | Changeingrossprofitmarginfromprioryear(%) |
| Aminoacidsforanimalnutrition | 14,623,714,419.16 | 11,749,902,019.51 | 19.65 | 0.58 | -7.94 | 7.43 |
| Aminoacidsforhumanmedicalpurposes | 476,308,595.90 | 353,986,358.20 | 25.68 | -15.35 | -13.52 | -1.57 |
| Foodtasteandtraitimprovingproducts | 7,945,120,706.10 | 6,399,514,452.76 | 19.45 | -19.19 | -15.55 | -3.48 |
| Others | 1,832,578,200.89 | 1,405,323,001.39 | 23.31 | -26.82 | 9.67 | -25.52 |
| Mainbusinessperformancebyregion | ||||||
| Byregion | Revenue | Operatingcosts | Grossprofitmargin(%) | Changeinrevenuefromprioryear(%) | Changeinoperatingcostsfromprioryear(%) | Changeingrossprofitmarginfromprioryear(%) |
| Domestic | 16,395,093,665.85 | 13,748,410,787.61 | 16.14 | -13.56 | -12.74 | -0.80 |
| Foreign | 8,482,628,256.20 | 6,160,315,044.25 | 27.38 | 0.13 | -1.86 | 1.48 |
| Mainbusinessperformancebysalesmodel | ||||||
| Salesmodel | Revenue | Operatingcosts | Grossprofitmargin(%) | Changeinrevenuefromprioryear(%) | Changeinoperatingcostsfromprioryear(%) | Changeingrossprofitmarginfromprioryear(%) |
| Directsales | 13,838,502,833.20 | 11,374,118,837.87 | 17.81 | -13.91 | -14.52 | 0.59 |
| Salesviaagency | 11,039,219,088.85 | 8,534,606,993.99 | 22.69 | -2.86 | -2.20 | -0.52 |
Explanationofmainbusinessperformancebyindustry,product,region,andsalesmodel
1)DuringtheReportingPeriod,theCompany’srevenuefromanimalnutritionaminoacidproductsincreasedby0.58percentagepointsyear-on-year,andgrossprofitmarginincreasedby7.43percentagepointsyear-on-year.Therevenueincreasewasmainlyduetothehighersalesvolumesofthreonineandvaline.Theincreaseingrossprofitmarginwasprimarilyattributedtothepriceincreaseofkeyproductslikethreonineand98%lysine,alongwiththedecreaseinrawmaterialcostsandimprovementsinproductionefficiency.
2)DuringtheReportingPeriod,theCompany’srevenuefromhumanmedicalaminoacidproductsdecreasedby15.35percentagepointsyear-on-year,andgrossprofitmargindecreasedby1.57percentagepointsyear-on-year.ThedeclineinbothrevenueandgrossprofitmarginwasmainlyduetothedropinproductpricesduringtheReportingPeriod.
3)DuringtheReportingPeriod,theCompany’srevenuefromfoodtasteandtraitoptimizationproductsdecreasedby19.19percentagepointsyear-on-year,andgrossprofitmargindecreasedby3.48percentagepointsyear-on-year.ThedeclineinbothrevenueandgrossprofitwasprimarilyduetothedecreaseinproductpricesduringtheReportingPeriod.
4)DuringtheReportingPeriod,theCompany’srevenuefromotherproductsdecreasedby26.82percentagepointsyear-on-year,andgrossprofitmargindecreasedby25.52percentagepointsyear-on-year.Thedecreaseinbothrevenueandgrossprofitwasmainlyduetothedeclineinthepriceofpetroleum-gradexanthangum.
(2)AnalysisofProductionandSales
√Applicable?Notapplicable
| Mainproducts | Unit | Production | Sales | Inventory | Changeinproductionfromprioryear(%) | Changeinsalesfromprioryear(%) | Changeininventoryfromprioryear(%) |
| Aminoacidsforanimalnutrition | ton | 2,780,407 | 2,784,230 | 59,229 | 6.51 | 5.65 | -6.06 |
| Aminoacidsforhumanmedicalpurposes | ton | 10,198 | 9,797 | 2,143 | -4.81 | -1.66 | 23.02 |
| Foodtasteandtraitimprovingproducts | ton | 988,208 | 999,165 | 22,455 | -5.22 | -4.54 | -32.79 |
Explanationofproductionandsales
1)Reasonsforchangeintheproduction,sales,andinventoryofaminoacidsforanimalnutrition:
DuringtheReportingPeriod,thereleaseofproductioncapacityforthreonineattheCompany’ssubsidiaries,alongwiththeincreasedproductionofthreonineandcornby-products,droveanincreaseinsalesvolume.Atthesametime,inventoryofcornby-productsdecreased.
2)Reasonsforchangeintheinventoryofaminoacidsforhumanmedicalpurposes:DuringtheReportingPeriod,theproductionandsalesofadenosinedecreased,whiletheproductionofglutamineproductsincreasedbutsalesdecreased,leadingtoanincreaseininventory.
3)ReasonsforChangesinInventoryofFoodTasteandTraitOptimizationProducts:DuringtheReportingPeriod,thedecreaseintheproductionofMSGproductsledtoareductioninbothsalesandinventory.
(3)PerformanceofSignificantPurchaseContractsandSignificantSalesContracts?Applicable√Notapplicable
(4)AnalysisofCosts
Unit:yuan
| Byindustry | |||||||
| Byindustry | Costcomposition | Amountforthecurrentperiod | Percentageintotalcosts(%) | Amountforthecorrespondingperiodinprioryear | Percentageintotalcosts(%) | Percentageofchange(%) | Explanation |
| Biologicalfermentation | Rawmaterials | 14,298,071,563.34 | 71.36 | 16,648,593,644.08 | 74.67 | -14.12 | |
| Energy | 3,208,997,378.34 | 16.02 | 3,091,052,434.82 | 13.86 | 3.82 | ||
| Labor | 680,489,396.71 | 3.40 | 575,261,550.75 | 2.58 | 18.29 | ||
| Manufacturingoverhead | 1,367,181,135.27 | 6.82 | 1,307,965,978.52 | 5.87 | 4.53 | ||
| Totalproductmanufacturingcosts | 19,554,739,473.66 | 97.60 | 21,622,873,608.16 | 96.98 | -9.56 | ||
| Pharmaceuticalandhealthcare | Productmanufacturingcosts | 353,986,358.20 | 1.77 | 409,339,493.72 | 1.84 | -13.52 | |
| Salesofmaterialsandothers | 127,972,982.88 | 0.63 | 264,908,923.37 | 1.18 | -51.69 | ||
| Total | 20,036,698,814.74 | 100.00 | 22,297,122,025.25 | 100.00 | -10.14 | ||
| Byproduct | |||||||
| Byproduct | Costcomposition | Amountforthecurrentperiod | Percentageintotalcosts(%) | Amountforthecorrespondingperiodinprioryear | Percentageintotalcosts(%) | Percentageofchange(%) | Explanation |
| Aminoacidsforanimalnutrition | Rawmaterials | 8,881,860,825.26 | 44.33 | 10,111,486,972.12 | 45.35 | -12.16 | |
| Energy | 1,773,842,667.78 | 8.85 | 1,647,784,617.63 | 7.39 | 7.65 | ||
| Labor | 327,714,152.66 | 1.64 | 270,485,094.51 | 1.21 | 21.16 | ||
| Manufacturingoverhead | 766,484,373.81 | 3.83 | 733,460,597.43 | 3.29 | 4.50 | ||
| Totalproductmanufacturingcosts | 11,749,902,019.51 | 58.65 | 12,763,217,281.69 | 57.24 | -7.94 | ||
| Aminoacidsforhumanmedicalpurposes | Productmanufacturingcosts | 353,986,358.20 | 1.77 | 409,339,493.72 | 1.84 | -13.52 | |
| Foodtasteandtraitimprovingproducts | Rawmaterials | 4,910,554,061.19 | 24.51 | 6,068,929,235.15 | 27.22 | -19.09 | |
| Energy | 873,526,025.63 | 4.36 | 873,192,281.80 | 3.92 | 0.04 | ||
| Labor | 225,229,876.48 | 1.12 | 211,491,210.59 | 0.95 | 6.50 | ||
| Manufacturingoverhead | 390,204,489.46 | 1.95 | 424,597,569.93 | 1.90 | -8.10 | ||
| Totalproductmanufacturingcosts | 6,399,514,452.76 | 31.94 | 7,578,210,297.47 | 33.99 | -15.55 | ||
| Others | Productmanufacturingcosts | 1,405,323,001.39 | 7.01 | 1,281,446,029.00 | 5.75 | 9.67 | |
| Salesofmaterialsandothers | 127,972,982.88 | 0.63 | 264,908,923.37 | 1.18 | -51.69 | ||
| Total | 20,036,698,814.74 | 100.00 | 22,297,122,025.25 | 100 | -10.14 | ||
OtherinformationregardingtheanalysisofcostsNone
(5)ChangeinConsolidationScopeCausedbyShareChangesinKeySubsidiariesduringtheReportingPeriod?Applicable√Notapplicable
(6)SignificantChangesorAdjustmentstotheCompany’sBusinesses,Products,orServicesduringtheReportingPeriod?Applicable√Notapplicable
(7)InformationofKeyCustomersandSuppliersA.InformationoftheCompany’skeycustomers
√Applicable?NotapplicableSalestothetopfivecustomersamountedto2,902,672,200yuan,accountingfor11.57%ofthetotalsalesfortheyear;inparticular,amongsalestothetopfivecustomers,salestorelatedpartieswere0yuan,accountingfor0%ofthetotalsalesfortheyear.
| No. | Customername | Sales(yuan) | Percentageinthetotalsalesfortheyear(%) |
| 1 | No.1 | 660,165,103.89 | 2.63 |
| 2 | No.2 | 577,405,436.39 | 2.30 |
| 3 | No.3 | 571,680,621.71 | 2.28 |
| 4 | No.4 | 564,373,811.01 | 2.25 |
| 5 | No.5 | 529,047,276.10 | 2.11 |
| 6 | Total | 2,902,672,249.10 | 11.57 |
CircumstanceduringtheReportingPeriodwheresalestoasinglecustomerexceeded50%ofthetotalsales,therewasanynewcustomeramongthetopfivecustomers,ortheCompanyreliedheavilyonaminorityofcustomers?Applicable√NotapplicableB.InformationoftheCompany’skeysuppliers
√Applicable?NotapplicablePurchasesfromthetopfivesuppliersamountedto1,645,362,400,accountingfor9.86%ofthetotalpurchasesfortheyear;inparticular,amongpurchasesfromthetopfivesuppliers,purchasesfromrelatedpartieswere0yuan,accountingfor0%ofthetotalpurchasesfortheyear.
| No. | Nameofsupplier | Purchaseamount(yuan) | Percentageintheannualtotalpurchase(%) |
| 1 | No.1 | 656,745,531.02 | 3.94 |
| 2 | No.2 | 314,314,131.77 | 1.88 |
| 3 | No.3 | 246,671,970.11 | 1.48 |
| 4 | No.4 | 228,915,298.35 | 1.37 |
| 5 | No.5 | 198,715,471.42 | 1.19 |
| 6 | Total | 1,645,362,402.67 | 9.86 |
CircumstanceduringtheReportingPeriodwherepurchasesfromasinglesupplierexceeded50%ofthetotalsales,therewasanynewsupplieramongthetopfivesuppliers,ortheCompanyreliedheavilyonaminorityofsuppliers?Applicable√Notapplicable
OtherinformationNone
3.Expenses
√Applicable?Notapplicable
RefertotheAnalysisofMainBusiness
4.R&DSpending
(1)InformationofR&Dspending
√Applicable?Notapplicable
Unit:yuan
| ExpensedR&Dspendingfortheperiod | 733,490,052.59 |
| CapitalizedR&Dspendingfortheperiod | |
| TotalR&Dspending | 733,490,052.59 |
| PercentageoftotalR&Dspendinginrevenue(%) | 2.93 |
| ProportionofcapitalizedR&Dspending(%) | 0 |
(2)InformationofR&Dpersonnel
√Applicable?Notapplicable
| NumberofR&Dpersonnel | 402 |
| PercentageofR&Dpersonnelintotalheadcount(%) | 3.13 |
| EducationalstructureofR&Dpersonnel | |
| Educationallevel | Numberofpersonnel |
| PhD | 13 |
| Master | 93 |
| Bachelor | 139 |
| Diploma | 157 |
| AgestructureofR&Dpersonnel | |
| Agegroup | Numberofpersonnel |
| Below30(notinclusiveof30) | 191 |
| 30-40(inclusiveof30andnotinclusiveof40) | 142 |
| 40-50(inclusiveof40andnotinclusiveof50) | 59 |
| 50-60(inclusiveof50andnotinclusiveof60) | 10 |
| 60andabove | 0 |
(3)Explanation?Applicable√Notapplicable
(4)ReasonsforsignificantchangesinthestructureofR&Dpersonnelandimpactonthe
Company’sfuturedevelopment?Applicable√Notapplicable
5.Cashflows
√Applicable?Notapplicable
RefertotheAnalysisofMainBusiness(II)ExplanationofSignificantChangesinProfitCausedbyBusinessOtherthanMainBusiness?Applicable√Notapplicable(III)AnalysisofAssetsandLiabilities
√Applicable?Notapplicable
1.Assetsandliabilities
Unit:tenthousandyuan
| Item | AmountasattheendoftheReportingPeriod | Percentageintotalassets(%) | Amountasattheendofthepreviousreportingperiod | Percentageintotalassets(%) | Changefromthepreviousreportingperiod(%) | Explanation |
| TradingFinancialAssets | 312,033,611.07 | 1.31 | 172,376,801.33 | 0.74 | 81.02 | Increaseinthepurchaseofwealthmanagementproductsduringthecurrentperiod. |
| Derivativefinancialassets | 200,000.00 | Notapplicable | Forwardtransactionshavebeensettledduringthecurrentperiod. | |||
| NotesReceivable | 73,697,475.30 | 0.31 | 129,231,952.45 | 0.56 | -42.97 | Decreaseinbank-acceptedbills,particularlyfromsmallerbanks,duringthecurrentperiod. |
| Accountsreceivablefinancing | 26,723,054.99 | 0.11 | 60,013,169.98 | 0.26 | -55.47 | Increaseintheamountheldtocollectcontractualcashflowsduringthecurrentperiod. |
| Non-currentAssetsDueWithinOneYear | 182,257,027.81 | 0.77 | 19,356,000.00 | 0.08 | 841.60 | Reclassificationfromlong-termfixeddepositsduewithinoneyearduringthecurrentperiod. |
| OtherCurrentAssets | 164,629,398.67 | 0.69 | 289,218,469.96 | 1.25 | -43.08 | DecreaseinVATcreditbalancesduringthecurrentperiod. |
| Long-termreceivables | 601,043.91 | 364,927.03 | 64.70 | Increaseinleasesecuritydepositsduringthecurrentperiod. | ||
| Long-termEquityInvestments | 6,874,939.88 | 0.03 | 18,942,230.64 | 0.08 | -63.71 | Lossesfromassociatesandrecoveryofexternalinvestmentsduringthecurrentperiod. |
| Constructioninprogress | 728,524,141.54 | 3.06 | 161,961,713.29 | 0.70 | 349.81 | Newconstructionprojectsinitiatedduringthecurrentperiod. |
| OtherNon-currentAssets | 782,574,484.98 | 3.29 | 209,122,415.35 | 0.90 | 274.22 | Increaseinlong-termfixeddepositsduringthecurrentperiod. |
| OtherPayables | 448,115,137.98 | 1.88 | 249,853,910.40 | 1.08 | 79.35 | Increaseinlitigationsettlementfeesduringthecurrentperiod. |
| Non-currentLiabilitiesDueWithinOneYear | 802,346,793.78 | 3.37 | 535,085,272.76 | 2.31 | 49.95 | Reclassificationoflong-termborrowingsduewithinoneyearduringthecurrentperiod. |
| Long-termBorrowings | 1,348,094,044.83 | 5.66 | 1,999,963,021.77 | 8.64 | -32.59 | Increaseinlong-termborrowingsduringthecurrentperiod. |
| CapitalReserve | 263,154,867.05 | 1.11 | 1,032,707,760.40 | 4.46 | -74.52 | Cancellationofsharesduringthecurrentperiod. |
| Less:Treasury | 287,771,455.80 | 1.21 | 576,775,719.27 | 2.49 | -50.11 | Cancellationofshares |
| Shares | duringthecurrentperiod. | |||||
| OtherComprehensiveIncome | -55,004,961.46 | -0.23 | 5,687,647.50 | 0.02 | -1,067.10 | Lossesfromfairvaluechangesinequityinstrumentsduringthecurrentperiod. |
OtherinformationNone
2.Overseasassets
√Applicable?Notapplicable
(1)AssetsizeTheCompany’soverseasassetsreached1.696(unit:billionyuan,currency:RMB),accountingfor
7.12%ofthetotalassets.
(2)Explanationofahighproportionofoverseasassets?Applicable√Notapplicable
3.RestrictionsovermajorassetsasoftheendoftheReportingPeriod
√Applicable?Notapplicable
| Item | Bookvalue(Unit:yuan) | Reasonsforrestriction |
| Monetaryfund | 428,628,697.39 | RefertoVII.Note1totheFinancialReportinSectionXformoredetail |
| Fixedassets | 393,081,094.85 | Mortgage |
| Intangibleassets | 27,154,158.71 | Mortgage |
| Total | 848,863,950.95 |
4.Otherinformation?Applicable√Notapplicable(IV)AnalysisofIndustrialBusinessInformation
√Applicable?Notapplicable
1.Mainrawmaterials-analysisofchangeincornmarket
(1)CornCornisthecorerawmaterialfortheCompany’smainproducts,accountingforover50%ofproductioncostsduringtheReportingPeriod.ItspricefluctuationsdirectlyaffecttheCompany’scostcontrol.Severalfactorsinfluencecornprices:(1)nationalgrainreserveandregulatorypolicies;(2)pricefluctuationsofalternativefeedgrainssuchassoybeansandwheat;(3)demandconditionsinthedownstreamlivestockandpoultryindustries;and(4)changesininternationalgeopoliticaldynamics.
AccordingtothelatestreportfromBoyarCommunications,China’sgrainoutputhitanewrecordhighin2024,withcornproductionreaching295milliontons,up1.4%year-on-year.Againstthebackdropofaglobaleconomicslowdownandeasinginflationarypressures,risingprotectionismandescalatinggeopoliticaltensions,combinedwithglobalbumperharvests,exerteddownwardpressureoncommodityprices.Internationalwheatandcornpricesbothfelltofour-yearlows.
Inthiscontext,China’sdomesticcornpricesin2024followedavolatiletrendof“earlydecline–mid-yearrebound–late-yeardip.”Inthefirsthalf,asgrassrootsgrainsupplyincreasedandimportedgrainsremainedelevated,pricesfellforfiveconsecutivemonths,droppingto2,362yuan/toninMay—thelowestsinceOctober2020.WithstrongerreservepurchasesbyChinaGrainReservesCorporation
andtighteningbondedzoneimportpolicies,pricesreboundedto2,410yuan/toninJuly.However,panicsellingoccurredinAugustfollowingoverseaspricedrops.AfternewcornhitthemarketinSeptember,activesupplyandsubstandardgrainpressureledtosharpdeclines.PricescontinuedtofallinQ4,withtheDecemberaveragedownto2,099yuan/ton—a4.5-yearlow.Tostabilizethemarket,thegovernmentadoptedapackageofmeasuresincludingexpandingreservesandsuspendingauctionsofimportedcorn.AccordingtoBoyarCommunications,thenationalaveragecornpricein2024was2,317yuan/ton,down
16.50%year-on-year.
TheCompany’sthreemajorproductionbasesarelocatedinChina’sprimarycorn-producingregions.Leveragingthesegeographicaladvantages,theCompanyhasbuiltadiversifiedandflexibleprocurementsystem:securinghigh-qualitysupplythroughconsignmentandstoragemodels,capitalizingonmarkettrendsviaspotpurchases,ensuringstablesupplythroughactiveparticipationinstatereserveauctions,andstrengtheningdirectcooperationwithtraders.This“four-pronged”procurementnetworkissupportedbyarobustmarketmonitoringmechanism,enablingdynamicoptimizationofprocurementscaleandmixinresponsetomarketconditions,pricemovements,andpolicychanges,therebymaximizingprocurementefficiency.
Accordingtointernalmanagementstatistics,duetoincreasedproductioncapacity,theCompany’stotalcornprocurementvolumerose10.39%year-on-yearduringtheReportingPeriod,whiletotalprocurementspendingdecreasedby8.83%duetofallingcornprices.
(2)Coal
Coal,especiallythermalcoal,playsakeyroleinprovidingheatenergyfortheCompany’sproductionprocesses.
AccordingtoareportbySublimeChinaInformation(SCI99),China’scoalmarketin2024wasmarkedbyabundantsupplyandshiftingdemanddynamics.Onthesupplyside,domesticcoalproductionremainedatahighlevel,whileimportshitarecordhighofover500milliontons,helpingtoensureampleoverallavailability.Onthedemandside,steadymacroeconomicgrowthsupportedcontinuedincreasesincoalconsumption.However,withlong-termcontractsdominatingthepower
sector,spotmarketactivitydeclined,andpricefluctuationswereincreasinglydrivenbydemandfromnon-powerindustries.SCI99datashowsthatcoalpricestrendeddownwardovertheyear.Bytheendof2024,theaveragepriceofQ5000thermalcoalinShandongstoodatRMB787.94/ton,downRMB90.13from2023—ayear-on-yeardropof10.26%.TheCompanyrefineditscoalprocurementstrategythroughactivenegotiationsandstrongersupplychainmanagement,ensuringastableandcost-effectivesupply.Basedoninternaldata,totalcoalpurchasesin2024wereslightlyhigherthanthepreviousyear,whileoverallspendingoncoalfellbyabout8%duetolowerprices.
2.AnalysisofchangesinproductsAccordingtothelatestresearchreportfromSublimeChinaInformation(SCI99),China,astheworld’slargestproducerandexporterofaminoacids,continuestoplayaleadingroleintheglobalmarket.Withongoinginnovationsandbreakthroughsinproductiontechnology,thedomesticaminoacidindustryhasenteredaperiodofrapiddevelopmentoverthepastfiveyears,markedbycontinuouscapacityexpansion,significantlyimprovedsupplycapabilities,andacceleratedindustryconsolidation.
Onthesupplyside,China’saminoacidproductioncapacityhasexpandedconsiderably.Inanefforttoenhanceglobalcompetitiveness,producershaveincreasedcapacitytoreduceoverallproductioncostsandseizemarketshareoverseas.Asaresult,outdatedandinefficientcapacityisgraduallybeingphasedout,leadingtoamoreconcentratedandoptimizedindustrystructure.Onthedemandside,thedomesticmarkethasmaintainedsteadygrowth.Risinglivingstandardshavedrivenconsistentincreasesintheconsumptionofanimalproteinsuchasmeat,eggs,anddairy,whichinturnhassupportedtheexpansionoflivestockandpoultryfarming.Inrecentyears,theMinistryofAgricultureandRuralAffairshasactivelypromotedthereductionandreplacementofsoybeanmeal,andencouragedthewidespreadadoptionoflow-proteinfeedformulas—furtherfuelingdemandforaminoacids.Productssuchaslysineandthreonine,whichareproducedviacornfermentation,haveplayedakeyroleinreplacingsoybeanmealwithalternativeproteinsources,therebyenhancingfeedsupplysecurity.
Againstabackdropofgrowingoverallfeedoutputandbroadadoptionoflow-proteinfeedtechnologies,domesticdemandforaminoacidscontinuestorisesteadily.Atthesametime,drivenbyrobustinternationaldemand,China’saminoacidexportshaveexpandedconsistently,furtherstrengtheningitsglobalcompetitiveness.
(1)Lysine
AccordingtoareportbySublimeChinaInformation(SCI99),China’slysineindustrywitnessednotablegrowthin2024.Totaldomesticproductioncapacityreached3.47milliontons,withactualoutputat2.82milliontonsandconsumptionat963,000tons.Thisgrowthwasprimarilydrivenbytwofactors:significantlyimprovedindustryprofitability,whichboostedproductionenthusiasm,andareboundinoverseasdemandthatfueledstrongexportmomentum.Lookingaheadto2025,withnew
capacitygraduallycomingonline,domesticdemandisexpectedtoexpandfurther,andtotaloutputisprojectedtosurpass3.02milliontons.Intermsofpricingtrends,thelysinemarketshowedcleardivergencein2024.Supportedbyrobustinternationaldemand,98%lysinemaintainedstrongexportperformanceandremainedathighpricelevels.Incontrast,70%lysinefacedweakerdomesticdemandandpersistentbearishmarketsentiment,resultinginsustainedpricepressure.Specifically,theaveragepriceof98%lysineroseto10.54yuan/kg,up1.34yuan/kgor14.57%year-on-year.Meanwhile,70%lysinefellto5.21yuan/kg,down0.36yuan/kgor6.46%year-on-year.Akeyhighlightin2024wasthemarkedimprovementinoverallprofitabilityacrossthelysineindustry.Thiswaslargelyduetofallingcornprices,whichreducedproductioncosts,andtherecoveryinmarketdemand.
Duringthereportingperiod,theEuropeanUnionlaunchedananti-dumpinginvestigationintoChineselysineexportsandissuedapreliminaryrulingattheturnof2024–2025,imposingsteeptariffsrangingfrom58.3%to84.8%.Thismoveisexpectedtoimpacttheglobalsaleslandscapeoflysineproducts.
Lookingahead,theindustryisexpectedtocontinuefacingchallengessuchasovercapacityandproducthomogeneity.Inresponse,companieswillneedtoadoptmoresophisticatedprocurementstrategies,strengthencostcontrolonrawmaterials,andloweroperationalexpensesthroughprocessoptimization—stepsthatareessentialforsustainingprofitabilityinthelongterm.
Asagloballeaderinthelysineindustry,thecompanywillcontinuetoleverageitsstrengthsinmanufacturingtechnology,R&Dinnovation,andsalesnetworkintegrationtodrivehigh-qualitydevelopmentandcontributetogreatervaluecreationacrossthelysinesupplychain.
(2)Threonine
Chinaremainstheworld’slargestproducerofthreonine.Asof2024,theindustry’sconcentrationratio(CR4)hadreached84%,withthecompanymaintainingaleadingpositionintermsofproductioncapacity.
Intermsofcapacityandoutput,China’stotalthreonineproductioncapacityreached1.244milliontonsin2024,up4.2%year-on-year.Actualoutputrosesignificantlyto1.013milliontons,representingasharp31.2%increasefromthepreviousyear.Thisgrowthwasprimarilydrivenbythecommissioningofnewproductionfacilitiesandtheresumptionofoperationsatseveralplants.Meanwhile,strongoverseasdemandforthreoninehelpedsustainhighpricelevels,furtherencouragingexpansionandboostingproductionenthusiasmacrosstheindustry.
Onthedemandside,domesticconsumptionofthreoninereached213,000tonsin2024,anincreaseof11,000tonsor5.4%year-on-year,reflectingsteadygrowthinthedomesticmarket.
Intermsofpricing,althoughtheadditionofnewproductioncapacityhasledtoamorediversifiedsupplylandscape,majorplayersstillholddominantmarketpositions.Continuedgrowthinexportvolumeprovidedsolidsupportforthedomesticmarket,allowingpricestoremainrelativelyelevatedthroughouttheyear.Specifically,theaveragethreoninepricein2024stoodat10.85yuan/kg,aslight
increaseof0.19yuan/kgor1.78%year-on-year.Accordingtocustomsdata,China’sthreonineexportsreachedapproximately689,400tonsin2024,up27.1%fromthepreviousyear.Insummary,2024markedapositiveyearforthethreonineindustry,withencouragingdevelopmentsacrosscapacity,output,demand,andpricing.Leadingenterprisescontinuedtoconsolidatetheirmarketpositions,whilerobustdemandbothathomeandabroadprovidedstrongmomentumfortheindustry’ssustainedgrowth.
(3)ValineAccordingtoindustryanalysisbyBoyarCommunications,2024markedaconcentratedsurgeindomesticvalineproductioncapacity.Multiplemajormanufacturersexpandedtheircapacity,withnewproductionlinescomingonlinethroughouttheyear,furtherintensifyingtheissueofoversupply.Bytheendof2024,China’stotalvalineproductioncapacityisexpectedtoreach302,000tons,withactualoutputestimatedatapproximately191,000tons.Ofthis,exportsareprojectedtoaccountforaround106,000tons,whiledomesticdemandisestimatedatjust75,000tons.
Underthestrainofasupply-demandimbalance,marketpricescameundersignificantdownwardpressure.AsoftheendofOctober,transactionpriceshaddroppedtohistoriclowsof11.5–11.8yuan/kg.Facingmountinglosses,someproducerschosetosuspendorshiftproduction.However,thecombinationofdownstreamstockpilingtriggeredbylowpricesandreducedsupplyfromproductionshiftshelpedeasethesupply-demandmismatch,promptingamodestreboundinprices.Fortheyearasawhole,theaveragepriceofvalinefellto14.40yuan/kg,down37.45%year-on-year.
In2024,over50%ofChina’svalineoutputwasexported,securingasignificantpresenceintheglobalmarket.OnDecember19,2024,theEuropeanCommissionformallylaunchedananti-dumpinginvestigationintovalineoriginatingfromChina,citingtheneedtoprotectlocalindustries.Iftheinvestigationresultsinafinalrulingconfirmingdumpingpracticesandleadstotheimpositionofanti-dumpingduties,itwouldhavefar-reachingconsequencesfortheinvolvedChineseenterprises.First,thesharpriseinexportcostswoulderodethepricecompetitivenessofChinesevalineintheEUmarket,potentiallyleadingtoalossofmarketshareandprofitmargins,withsomecompaniespossiblyforcedtoexittheEUmarketaltogether.Second,attheindustrylevel,suchtradebarrierscoulddampenenterprises’capacityexpansionplansandR&Dinvestments,hamperingindustrialupgradingandlong-termsustainablegrowth.Lastly,thismovebytheEUmaypromptothercountriesandregionstofollowsuit,furthercomplicatingtheinternationalpositioningofChina’svalineindustry.
(4)MSG
In2024,ChinacontinuedtodominatetheglobalMSGindustry,accountingforacommanding
80.3%ofglobalproductioncapacity,firmlymaintainingitspositionastheworld’slargestproducerandexporterofMSG.Benefitingfromabundantdomesticcornresources,Chinesemanufacturersprimarilyusecorn-basedfermentationprocesses,withMSGproductionaccountingforapproximately7%–8%oftotaldeep-processedcornconsumption.
AccordingtothelatestdatafromSublimeChinaInformation(SCI),MSGproductioninChinareached3.2037milliontonsin2024,representingasignificantyear-on-yearincreaseof20.21%.Total
supplyalsoclimbedto3.4855milliontons,up16.91%fromthepreviousyear.Lookingaheadto2025,asleadingenterprisescontinuetoscaleupandnewcapacitieslaunchedin2024aregraduallybroughtonline,theoverallsupplyofMSGisexpectedtoincreasefurther.DomesticMSGoutputisprojectedtoreachapproximately3.761milliontonsin2025,ayear-on-yeargrowthof17.40%.Ontheconsumptionside,China’sMSGmarkethasdemonstratedsteadygrowthoverthepastfiveyears,drivenbyrisingpercapitaincomeandtheongoingtrendofconsumptionupgrading.
AnalysisofBusinessInformationintheFoodIndustry1CompositionofMainBusinessduringtheReportingPeriod
√Applicable?Notapplicable
Unit:yuanCurrency:RMB
| MainbusinessperformanceduringtheReportingPeriodbyproduct | ||||||
| Product | Operatingrevenue | Operatingcosts | Grossprofitmargin(%) | Changeinoperatingrevenuefromprioryear(%) | Changeinoperatingcostsfromprioryear(%) | Changeingrossprofitmarginfromprioryear(%) |
| Flavorenhancer | 7,254,455,105.84 | 5,964,315,393.31 | 17.78 | -17.09 | -15.56 | -1.50 |
| Feedaminoacid | 11,423,525,867.12 | 8,574,917,054.29 | 24.94 | 10.66 | -6.39 | 13.67 |
| Pharmaceuticalaminoacid | 476,308,595.90 | 353,986,358.20 | 25.68 | -15.35 | -13.52 | -1.57 |
| Majorrawmaterialbyproduct | 3,739,338,058.99 | 3,601,214,680.64 | 3.69 | -23.26 | -11.63 | -12.67 |
| Others | 1,984,094,294.20 | 1,414,292,345.42 | 28.72 | -32.28 | 6.76 | -26.06 |
| Subtotal | 24,877,721,922.05 | 19,908,725,831.86 | 19.97 | -9.33 | -9.64 | 0.27 |
| MainbusinessperformanceduringtheReportingPeriodbysalesmodel | ||||||
| Salesmodel | Operatingrevenue | Operatingcosts | Grossprofitmargin(%) | Changeinoperatingrevenuefromprioryear(%) | Changeinoperatingcostsfromprioryear(%) | Changeingrossprofitmarginfromprioryear(%) |
| Directsales | 13,838,502,833.20 | 11,374,118,837.87 | 17.81 | -13.91 | -14.52 | 0.59 |
| Salesviaagency | 11,039,219,088.85 | 8,534,606,993.99 | 22.69 | -2.86 | -2.20 | -0.52 |
| Subtotal | 24,877,721,922.05 | 19,908,725,831.86 | 19.97 | -9.33 | -9.64 | 0.27 |
| MainbusinessperformanceduringtheReportingPeriodbyregion | ||||||
| Region | Operatingrevenue | Operatingcosts | Grossprofitmargin(%) | Changeinoperatingrevenuefromprioryear(%) | Changeinoperatingcostsfromprioryear(%) | Changeingrossprofitmarginfromprioryear(%) |
| Domestic | 16,395,093,665.85 | 13,748,410,787.61 | 16.14 | -13.56 | -12.74 | -0.80 |
| Overseas | 8,482,628,256.20 | 6,160,315,044.25 | 27.38 | 0.13 | -1.86 | 1.48 |
| Subtotal | 24,877,721,922.05 | 19,908,725,831.86 | 19.97 | -9.33 | -9.64 | 0.27 |
| Total | 24,877,721,922.05 | 19,908,725,831.86 | 19.97 | -9.33 | -9.64 | 0.27 |
2ProfitfromOnlineSalesChannelsduringtheReportingPeriod?Applicable√Notapplicable
(V)AnalysisofInvestmentOverallanalysisofexternalequityinvestment
√Applicable?Notapplicable
Unit:yuan
| Investee | Proportionofshareholdingininvestee(%) | Bookbalance | |||
| Openingbalance | Increase | Decrease | Closingbalance | ||
| BankofTibet | 4.2414 | 157,000,000.00 | 157,000,000.00 | ||
| AIMVaccineCorporation | 4.1286 | 355,691,350.00 | -71,397,070.00 | 284,294,280.00 | |
| TongliaoDeshengBio-techCo.,Ltd. | 49 | 12,219,697.23 | -5,344,757.35 | 6,874,939.88 | |
| BeitunZefengAgriculturalDevelopmentCo.,Ltd. | 33.33 | 6,722,533.41 | 6,722,533.41 | ||
| Total | 531,633,580.64 | -76,741,827.35 | 6,722,533.41 | 448,169,219.88 | |
1.Significantequityinvestment?Applicable√Notapplicable
2.Significantnon-equityinvestment?Applicable√Notapplicable
3.Financialassetsmeasuredatfairvalue
√Applicable?Notapplicable
Unit:yuanCurrency:RMB
| Assettype | Openingamount | GainsorlossesonchangesinfairvaluefortheReportingPeriod | Accumulatedfairvaluechangesincludedinequity | ImpairmentaccruedduringtheReportingPeriod | PurchaseamountfortheReportingPeriod | Sales/repurchaseamountfortheReportingPeriod | Otherchanges | Closingamount |
| Trustproducts | 3,299,854.83 | 200,000,000.00 | 203,299,854.83 | - | ||||
| Privateequity | 29,966,801.33 | 901,963.92 | 30,868,765.25 | |||||
| Derivatives | 200,000.00 | -6,262,705.83 | -6,062,705.83 | - | ||||
| Others | 715,114,519.98 | -40,358,492.46 | -64,705,720.00 | 7,013.14 | 6,553,584,500.00 | 6,445,868,231.72 | -33,283,101.85 | 749,182,180.81 |
| Total | 745,281,321.31 | -42,419,379.54 | -64,705,720.00 | 7,013.14 | 6,753,584,500.00 | 6,643,105,380.72 | -33,283,101.85 | 780,050,946.06 |
Securitiesinvestment?Applicable√Notapplicable
Explanationofsecuritiesinvestment?Applicable√NotapplicablePrivateequityinvestment?Applicable√NotapplicableDerivativesinvestment?Applicable√Notapplicable
4.ProgressoftherestructuringandintegrationofmaterialassetsduringtheReportingPeriod?Applicable√Notapplicable(VI)SaleofMaterialAssetsandEquity?Applicable√Notapplicable(VII)AnalysisofMajorHoldingandJointStockCompanies
√Applicable?Notapplicable
TheCompany’ssubsidiaryTongliaoMeihuamainlyproducesMSGandaminoacids,whichisclassifiedasthemanufacturingindustry.Itsregisteredcapitalis1.8billionyuan,anditslegalrepresentativeisYanJin.AsofDecember31,2024,TongliaoMeihuahad7.845billionyuanintotalassetsand5.223billionyuaninnetassetsandrealizedarevenueof10.104billionyuanandnetprofitsof936millionyuan.TheCompany’ssubsidiaryXinjiangMeihuamainlyproducesaminoacids,whichisclassifiedasthemanufacturingindustry.Itsregisteredcapitalis2.5billionyuan,anditslegalrepresentativeisWangYou.AsofDecember31,2024,XinjiangMeihuahad6.104billionyuanintotalassetsand5.098billionyuaninnetassetsandrealizedarevenueof5.938billionyuanandnetprofitsof783millionyuan.
TheCompany’ssubsidiaryJilinMeihuamainlyproducesMSGandaminoacids,whichisclassifiedasthemanufacturingindustry.Itsregisteredcapitalis2billionyuan,anditslegalrepresentativeisZhangJinlong.AsofDecember31,2024,JilinMeihuahad6.236billionyuanintotalassetsand3.463billionyuaninnetassetsandrealizedarevenueof7.392billionyuanandnetprofitsof733millionyuan.(VIII)StructuredEntitiesControlledbytheCompany?Applicable√NotapplicableVI.TheCompany’sDiscussionandAnalysisofitsFutureDevelopment(I)IndustrialLandscapeandTrend
√Applicable?Notapplicable
Theglobalaminoacidindustryisundergoingaprofoundtransformation.Bothdomesticandinternationalenterprisesareconfrontedwithamultitudeofchallenges,includingrisingtradeprotectionism,frequentanti-dumpinginvestigations,intensifiedcapacityexpansion,andincreasinglyfiercemarketcompetition.Thesedynamicsarecollectivelyreshapingtheindustriallandscapeandcompellingenterprisestorespondthroughtechnologicalinnovation,strategicrestructuring,andglobaldeployment.
1.EscalationofTradeProtectionismandHeightenedAnti-dumpingRisks:Theresurgenceofglobaltradeprotectionismhasledtoanotableincreaseinanti-dumpinginvestigations,whichhavebecomearecurrentfeatureininternationaltrade.TheEuropeanUnionhasinitiatedanti-dumpinginvestigationsagainstChinese-producedlysineandvaline,whileBrazilhaslaunchedsimilarinquiriestargetingfeed-gradelysinefromChina.ThesedevelopmentsposesubstantialchallengesforChineseaminoacidexporters.WiththescheduledcommissioningofnewproductioncapacitiesinChinaoverthenexttwoyears,theriskexposureinexternaltradeisexpectedtofurtherintensify.
Inresponse,enterprisesmustcloselymonitorevolvinginternationaltradepolicies,activelyengageinlegaldefenseagainstanti-dumpingactions,andmitigateassociatedrisksthroughoverseascapacity
allocationanddiversifiedmarketstrategies.Thesemeasuresarecriticaltosustainingandenhancingtheirglobalmarketcompetitiveness.
2.AccelerationofDomesticCapacityExpansion:CoexistenceofExportGrowthandInternalCompetitivePressuresChina’saminoacidproductioncapacitycontinuestogrowrapidly,withexportvolumesmaintaininghistoricallyhighlevels.However,thedomesticmarketisbecomingincreasinglysaturated,givingrisetointensifiedcompetitionand“internalfriction.”Tobreakthroughthisbottleneck,Chineseenterprisesmustacceleratetheirglobalizationefforts.Strategiessuchasoffshoremanufacturing,internationalmarketing,andlocalizedoperationsareessentialtoenhancingglobalcompetitiveness.Concurrently,enterprisesshouldadoptaforward-lookingstrategicvision,optimizeresourceallocation,andreducerelianceonanysingleregionalmarkettoensuresustainabledevelopment.
3.BankruptcyRestructuringandBusinessRealignmentAmongInternationalEnterprises:
Internationalaminoacidcompanieshaveundertakenbankruptcyrestructuringorbusinessadjustmentsduetostrategicshiftsandvariousoperationalfactors.Forexample,METabolicExplorerinFrancefiledforbankruptcyprotectionandwasrestructuredunderthenewnameEurolysineSAS;SumitomoChemicaladjusteditsmethioninesalesanddistributionchannelstowardagloballyintegratedsalessystem;CJCheilJedangCorporationannouncedplanstosellitsbiodivision,whichmainlyproducesaminoacidsandotherrelatedproducts;andEvoniklaunchedalarge-scalerestructuringinitiative,reorganizingitsbusinesslinesintotwomajorsegments:CustomizedSolutionsandAdvancedTechnologies.Thesechangesarereshapingtheglobalindustrylandscapeand,atthesametime,creatingmultiplestrategicopportunitiesforChineseenterprises:first,marketspacereleasedbythecapacityreductionofmultinationalcorporations;second,mergerandacquisitionopportunitiesstemmingfromthereorganizationoftechnologicalassets;andthird,achancetoenhanceChina’sinternationalinfluenceduringglobalindustrialchainrestructuring.Withmatureindustrialsupportsystemsandcostadvantages,Chineseaminoacidproducersarewell-positionedtomoveupthevaluechainthroughtechnologicalupgradingandglobalizedoperations.
Domesticcompaniesshouldleveragetheiradvantagesinadvancedproductionandmanagementsystemstoaccelerateglobalexpansionthroughoverseasfacilityconstructionandinternationalmergersandacquisitions.Meanwhile,enhancinglocalizedoperationalcapabilitiestopreciselyaddressregionalmarketneedswillbekeytocapturingstrategicopportunitiesamidglobalindustrialrestructuring.
4.ProductPortfolioOptimizationandDownstreamApplication-DrivenInnovation:Againstthebackdropofcapacityexpansion,increasingtradebarriers,andevolvingglobalproductionpatterns,enterprisesareactivelyadjustingtheirproductportfoliostorespondtoshiftingmarketdemand.Forexample,manycompaniesarestrategicallyphasingoutproductionof98%lysineandreallocatingresourcestowardmorediversifiedaminoacidproducts.Inlightofanti-dumpinginvestigationsbytheEU,companiesarealsorevisingtheirglobaldistributionstrategies,redirectingproductflowsoriginallyintendedfortheEUmarkettootherregions.Thesemeasureshaveenhancedtheflexibilityofsupply-demandmatching.Suchportfolioadjustmentsaredrivingstructuraltransformationsindownstreamindustriessuchasanimalfeedandfoodproduction.Inturn,amoreadaptiveapplicationecosystemis
graduallytakingshape—onethatsupportsnewproductmatricesandpromotesvaluecreationacrosstheentireindustrialchain.
5.TechnologicalInnovationandImprovementsinProductionEfficiency:Advancementsinfermentationprocessesandthedevelopmentofnewmicrobialstrainsareunlockingnewgrowthtrajectoriesfortheindustry.Bothdomesticandinternationalfirmsareleveragingbiotechnologyinnovationtoenhanceproductionefficiencyandreducecosts,therebyimprovingtheindustry’ssustainability.Examplesinclude:geneeditingtooptimizemicrobialperformance,thedevelopmentofhighlyefficientcustomizedenzymes,andsystematicprocessenhancementstoimproveproductyieldandquality.Theseinnovationsareenhancingfirms’corecompetitivenessandreinforcingtheirpositioninginglobalmarkets.Insummary,theaminoacidindustryisatacriticaljuncturemarkedbyprofoundstructuralchanges.Tonavigatethiscomplexandrapidlyevolvingenvironment,enterprisesmustprioritizetechnologicaladvancement,strategicflexibility,andinternationalization.Intheyearsahead,industrycompetitionisexpectedtointensifyfurther.Onlyenterpriseswithstrongcorecompetencies,innovationcapacity,andadaptivestrategieswillbeabletomaintaincompetitivenessandsecuresustainablegrowthamidthistransformativeshift.(II)TheCompany’sDevelopmentStrategy
√Applicable?Notapplicable
TheCompany’sdevelopmentstrategyremainsunchanged:1)focusingonthehigh-qualitygrowthofthemainbusiness,strivingtobecomealeadingenterpriseinsyntheticbiology,ensuringthesustainablegrowthofprofitability,andbecomingthemostcompetitiveindustrialleader,andbuildingasmartfactoryandalighthousefactoryintheaminoacidindustry;2)drivenbybothtechnologyandmanagement,strengtheningtheCompany’sdefenselinethroughtheconcertedeffortsofitsR&D,supply,production,sales,andallfunctionaldepartments;3)persistingincreationandsharing,stickingtoacustomer-centeredapproach,andupholdingtheprincipleofintegrity.
TheCompanyhasestablishedalarge-scalebiomanufacturingplatformthatservesasthecorevehiclefortheindustrializationofsyntheticbiologytechnologiesandfunctionsasastrategicinfrastructureunderpinningitslong-termdevelopment.Thisplatformintegrateskeymodules—biotechnologicalinnovation,processdevelopment,engineeringscale-up,andleanproductionmanagement—formingasystematicandhighlydifferentiatedcompetitiveadvantagethatisdifficulttoreplicate.
In2025,theCompanywillfocusondeepeningmultidimensionalcollaborationswithleadingglobalbiotechnologyfirmsandresearchinstitutions.Effortswillbedirectedtowardsystematicallyidentifyingandexploringbreakthroughopportunitiesandproductpotentialinfoundationalsyntheticbiology,precisionfermentation,andnon-grainfermentationtechnologies.Byintegratingitsproprietarystraindevelopmentplatform,robustprocessscale-upsystems,andlarge-scaleproductioncapabilities,thecompanyaimstoacceleratethecommercializationofcutting-edgetechnologiesandthetransformationofhigh-valueinnovations.
Tosupportprojectadvancement,theCompanyhasadoptedanadaptive,stage-specificcollaborationstrategy.Tailoredtothedifferentphasesofearly-stagetechnologyincubation,mid-stageindustrialvalidation,andlate-stagecommercialoperation,thismodelflexiblyincorporatesacombinationofapproaches—includingtechnologylicensing,jointventures,strategicequityparticipation,andmergersandacquisitions.Thismechanismenablesthecompanytoactivelyexpandstrategicpathwaysforacquiringnewtechnologiesandproducts.(III)BusinessPlan
√Applicable?Notapplicable
In2025,theCompanywillcontinuetoincreaseinvestmentsininformationtechnologydevelopment,organizationalgrowth,internationalexpansion,andresearchanddevelopment.Thecompanywillenhancetheautomationandintelligenceofproduction,refineoperationsandmanagement,completenewconstructionprojectsaccordingtoplan,andcontinuouslyimproveitscompetitivecapabilities:
1.InformationTechnologyDevelopment:Acomprehensiveupgradeofproductioninformationsystemswillbeimplemented,achievingfullcoverageoftheMESsystemacrosstheentirefactory.Keyprojects,includingtheMESimplementationattheTongliaoandXinjiangproductionbases,willbeprioritized,withthegoalofestablishingaunifiedproductioninformationmanagementplatformforend-to-enddigitalcontrol.TodeepentheapplicationoftheMESsystem,itwillbeestablishedasthecoremanagementtooloftheProductionTechnologyResearchInstitute,withafocusonoptimizingproductionprocessesandimprovingmanagementefficiency.Asystemapplicationevaluationmechanismwillbedevelopedtomaximizethesystem’seffectiveness.Toenhanceon-siteproblem-solvingefficiency,the“FrontlineWorkMethod”willbepromoted,requiringtechnicalexpertstoimmersethemselvesinproductionenvironments,establisha“problemlist”managementsystem,implementa“one-table”workmodel,optimizemeetingmanagement,andimproveproblem-solvingtimelinessandrelevance.Forstandardization,acontinuousoptimizationmechanismforSOPswillbeestablished,withregulariterativeupdatestostrengthenstandardizedoperatingproceduresandensurethenormativityandefficiencyofproductionoperations.
2.OrganizationalDevelopment:Intalentdevelopment,thecompanywilldeepenthe“AllEmployeesOperate,CreateandShare”philosophytostimulateemployeeinnovationandvitality.Themanagementtraineetrainingsystemwillbeoptimized,andaninternationaltalentreservewillbeestablished.Theinternaltrainingsystemwillberefined,withsuccessfulcasesbeingpromotedtoimprovetheoverallqualityofmanagementpersonnel.Formanagementmechanismoptimization,performancemanagementreformswillbeadvanced,andaprocess-basedperformanceevaluationsystemwillbeestablished.Thecompanywillstrengthenstrategicgoalmanagementtoensuretheexecutionofstrategiesandoptimizetalentpromotionchannelswithawell-roundedincentivemechanism.Regardingtheimprovementofworkenvironment,theproductionbaseenvironmentalbeautificationprojectwillbe
implemented,andworkshopandofficeenvironmentupgradeswillbepursuedtocreateacomfortableandsafeworkingenvironment.
3.InternationalExpansion:AspecializedteamwillbeestablishedtoensurethesuccessfuldeliveryoftheXieheprojectandtheimplementationoftheinternationaloperationalmechanism,drivingbusinesstransformationandupgrading.
4.ResearchandDevelopmentInnovation:InternationalR&Dcooperationwillbestrengthened,andnewtechnologyintroductionchannelswillbeexpanded,withafocusonkeyproductareastoachievetechnologicalbreakthroughsandenhancecompetitivenessininternationalmarkets.
5.CapacityConstruction:Theprioritywillbeensuringtheon-scheduleproductionlaunchofthe600,000-tonlysineprojectinBaicheng.TheTongliaothreonineandXinjiangvalinemodificationprojectswillbeadvanced,andaprojectprogresscontrolmechanismwillbeestablished.Intermsofcapacityoptimization,acapacityenhancementplanwillbeimplemented,productionlayoutwillbeoptimized,resourceutilizationefficiencywillbeimproved,andadynamiccapacityadjustmentmechanismwillbeestablished.(IV)PotentialRisks
√Applicable?Notapplicable
1.OverseasMarketSalesMayFaceUncertaintyRisksDuetoChangesinInternationalTradeEnvironmentInthepastthreeyears,thecompany’soverseasmainbusinesssalesrevenuewere8.65billionyuan,8.47billionyuan,and8.48billionyuan,accountingfor31.18%,30.87%,and34.10%ofthetotalmainbusinessrevenue,respectively.Overseassalesmustcomplywiththelawsandregulationsofthecountriesorregionswheretheclientsarelocated,meettherequiredsupplierqualifications,andfulfillcustomerproductrequirements.Ifinternationalpoliticalandeconomicsituationschange,orifsignificantchangesoccurinthetradepoliciesofvariouscountriestowardChina,thismayleadtoadeclineinthecompany’soverseassalesoranincreaseincosts,whichwilladverselyaffectthecompany’soverallbusinessperformance.
(1)Anti-DumpingInvestigation
OnMay23,2024,theEuropeanCommissionannouncedtheinitiationofananti-dumpinginvestigationintolysineoriginatingfromChina.Bytheendof2024,theEuropeanCommissionissuedapreliminaryruling,imposinganinitialanti-dumpingdutyofupto84.8%onlysineexportstotheEuropeanUnion.Thecompanyhasalreadysubmitteddocumentationdetailingrawmaterialpriceinformationforthefinalruling.Ifthefinalrulingislessfavorablethanexpected,itwillnegativelyimpactthecompany’sperformanceandmayaffectfuturecapacityallocationplans.
OnDecember19,2024,theEuropeanCommissionannouncedtheinitiationofananti-dumpinginvestigationonValineoriginatingfromChina,followingacomplaintfromEUenterprisesfiledonNovember5,2024.OnDecember27,2024,theBrazilianMinistryofDevelopment,Industry,Trade,andServicesalsoinitiatedananti-dumpinginvestigationonlysineusedinanimalfeed,followingarequestfromBraziliandomesticenterprisesfiledonJuly18,2024.
Overseasanti-dumpinginvestigationsandtheimpositionofhighanti-dumpingdutiesdirectlyimpactthecompetitivenessofChineseproductsabroad.Iftheanti-dumpingdutiesimposedonthecompany’sproductsarehigherthanthoseonothercompaniesintheindustry,thiswilldirectlyreducetheexportvolumeofthecompany’srelevantproducts.Furthermore,thereductioninexportsmayleadtointensifiedcompetitioninthedomesticmarket,furthernegativelyimpactingthecompany’sbusinessperformance.
(2)NationalTradeRestrictions
TheU.S.governmenthasimposedrestrictionsongoodsandtradefromChina,andthefuturetradeoutlookbetweenChinaandtheU.S.remainsuncertain.OnDecember23,2021,theU.S.presidentsignedtheUyghurForcedLaborPreventionAct(the“Act”),whichrestrictstheexportofproductsproducedinXinjiangtotheU.S.TheescalationoftradetensionsorotherrelatedissuesbetweenChinaandtheU.S.,includingnewsandrumors,mayintroduceuncertaintyintoexportbusinessandpotentiallyimpactthecompany’soperations.Additionaltraderestrictionsandsanctionswouldadverselyaffectthecompany’sbusinessinoverseasregions,specificallyincludingtheimpositionoftariffsandimporttaxes,settingquotasorothernon-tariffbarriers,importandexportrestrictions,licensinglimitations,sanctions,andotherretaliatorymeasures.Theseissuesmaynegativelyaffectthecompany’sreputationandproductsales,whichinturncouldsignificantlyharmbusinessperformance.
2.RiskofLower-than-ExpectedReturnsonNewProjectInvestments
Accordingtotheresolutionspassedatthe18thmeetingofthe10thBoardofDirectors,thecompanyplanstoinvestinsignificantprojectsin2025toenhanceitscompetitiveedge.However,otherindustryplayersarealsoincreasingtheirproductioncapacity,whichmaycreatedownwardpressureonproductpricesandaffectthereturnsonthecompany’snewprojects.Iftheadditionalcapacityfailstoeffectivelyeliminateoutdatedproductionorifmarketdemandgrowsslowerthanexpected,increasedcompetitionandpricepressurecouldresultinanegativeimpactonthecompany’sfinancialperformance.
3.Environmental,Safety,andComplianceRisks
Thecompany’swholly-ownedsubsidiaries,includingTongliaoMeihua,XinjiangMeihua,andJilinMeihua,arekeypollutionsourcesunderenvironmentalregulatoryoversight.Thecompanymainlyemploysbiologicalprocessesforproduction,generatingwastewater,wastegases,andsolidwasteduringmanufacturing.Anysignificantenvironmentalpollutionincidentduetomanagementoversightorunforeseencircumstancescouldleadtoadministrativepenalties,orevenforcedshutdownsandrectificationorders,severelydisruptingoperations.Furthermore,asnationalenvironmentalregulationsbecomemorestringent,thecompanymayneedtoinvestmoreinenvironmentalprotectionmeasurestocomplywithregulatoryrequirements,increasingoperationalcosts.Additionally,thecompany’sproductionprocessesarecomplex,involvingmultiplestagessuchascornscreening,soaking,aminoacidfermentation,andextraction.Theseprocessesrequiretheuseofhigh-pressuresteam,multi-voltagepowersupplysystems,andspecializedequipment,aswellastheproduction,storage,andhandlingofhazardouschemicalssuchasliquidammoniaandsulfuricacid.Ifsafetymanagementprotocolsarenotfollowed,employeesafetyawarenessisinsufficient,orequipmentisnotproperlymaintained,safety
incidentscouldoccur,leadingtopotentialinjuries,propertydamage,andproductiondisruptions,negativelyaffectingthecompany’sperformance.
4.RiskofChangesinIndustryRegulatoryPoliciesThecompany’smainbusinessinvolvestheresearch,development,production,andsaleofaminoacidproducts,whichareregulatedbymultiplegovernmentdepartments,includingtheStateAdministrationforMarketRegulation,theMinistryofIndustryandInformationTechnology,theNationalDevelopmentandReformCommission,andtheMinistryofScienceandTechnology.Currently,Chinahasawell-establishedlegalandregulatoryframework,withstrictcontrolsoverproductproductionlicenses,qualitymanagement,andregistrationapprovals.Additionally,majorexportmarkets,suchastheEuropeanUnion,imposehighproductentrystandards.However,astheindustryevolvesandregulatoryrequirementscontinuetotighten,thereisapotentialriskthatnewrestrictivepoliciesmaybeintroducedbythegovernment.Suchchangescouldlimittheproductionanduseofthecompany’sproducts,adverselyaffectingoverallprofitability.Thecompanywillcloselymonitorpolicydevelopmentsandpromptlyadjustitsbusinessstrategiestomitigatethepotentialimpactofregulatorychanges.
5.TechnologicalRisks
(1)RiskofCoreTechnologyLeakageandLossofKeyTechnicalPersonnelThecompanyhasestablishedsignificanttechnologicaladvantagesandextensiveindustrializationexperienceincriticalareassuchasstraincultivationandfermentationcontrol.Itsmarketcompetitivenesslargelyreliesoncoretechnologiesandachievementsaccumulatedthroughlong-termR&Defforts.Tosafeguardtheseassets,thecompanyhastakenarangeofprotectivemeasures,includingestablishingadedicatedR&Dteamwithfull-timeresearchers,signinglong-termcontractswithkeytechnicalpersonnel,andofferingcompetitivecompensationpackages.Inaddition,allemployeeswithaccesstocoretechnologiesarerequiredtosignconfidentialityagreements.Despitetheseprecautions,thepossibilityoftechnologyleakagecannotbeentirelyruledout,whichcouldnegativelyimpactthecompany’soperatingperformance.Furthermore,withtherapiddevelopmentofthedomesticbiotechnologyindustry,high-endtechnicaltalenthasbecomeascarceresourceintenselysoughtafterbyindustrypeers.Alarge-scaledepartureoftechnicalstaffwouldsignificantlyhinderthecompany’sR&Dandproductionoperations.
(2)RiskofIntellectualPropertyProtectionThecompanyhasestablishedacomprehensiveintellectualpropertyprotectionsystem.Authorizedandpendingpatentscovertheentireindustrialchain,includingstraincultivation,fermentationcontrol,separationandextraction,andextendedapplications.WhilethecompanyadherestoindependentinnovationandhasbuiltasoundR&Dmanagementframework,itfacesdualrisksinacompetitivelandscape:thepotentialinfringementofitsownintellectualpropertybyothers,andtheriskofunintentionallyviolatingthird-partyrightsduringR&Dactivities.Shouldadisputeariseorifthecompanyisfoundtohaveinfringeduponothers’intellectualproperty—orifitsownIPrightsareinvalidated—thiscoulddirectlyimpacttheproductionandsaleofrelatedproducts,resultingin
significantadverseeffectsonthecompany’sbusinessdevelopment.
(3)RiskofNewProductDevelopmentandCommercializationDevelopingandcommercializingnewproductsisakeystrategyformaintainingthecompany’scompetitiveedge.However,newtechnologiesandproductstypicallyrequirelongdevelopmentcyclesandsubstantialinvestment.AlthoughthecompanyhasbuiltamatureR&Dsystemandassembledaprofessionaltalentpool,theriskofR&Dfailureremains.Evenaftersuccessfuldevelopment,themarketperformanceofnewproductsdependsonvariousinternalandexternalfactors,includingthecompany’ssalescapabilitiesanddownstreammarketconditions.Delaysindevelopmentorunderperformanceinmarketadoptioncouldnegativelyimpactthecompany’sfinancialresults.Inresponse,thecompanywillcontinuetoincreaseR&Dinvestmentandrefineitsmarketingandcommercializationmechanismstomitigatetheserisks.
6.FinancialRisks
(1)ExchangeRateRiskAsacompanyprimarilyoperatingintheChinesemarket,mostofthecompany’stransactionsaresettledinRMB.However,itholdsforeigncurrencyassets,bearsforeigncurrencyliabilities,andmayengageinfuturetransactionsdenominatedinforeigncurrencies(primarilyUSD),allofwhicharesubjecttoexchangeratefluctuations.Toeffectivelymanageexchangeraterisk,thefinancedepartmenthasestablishedarobustforeignexchangeriskmonitoringsystem,adoptingmeasuressuchasdynamicallyadjustingthescaleofforeigncurrencytransactionsandoptimizingtheasset-liabilitystructure.Inaddition,thecompanyusesfinancialderivativessuchasforwardforeignexchangecontractsandcurrencyswapagreementsforhedgingpurposes.Nevertheless,ifexchangeratevolatilityintensifiesandthecompanyfailstoproperlymatchitsforeigntradeactivitieswithitsforwardsettlementandpurchasearrangements,itmaynegativelyaffectthecompany’soperatingperformance.
(2)RiskofChangesinTaxPoliciesSomeofthecompany’ssubsidiariescurrentlybenefitfromregionalcorporateincometaxincentives.However,changesinnationaltaxpoliciesmayleadtoadjustmentsoreventhecancellationofexistingpreferentialtreatments,whichwoulddirectlyincreasethecompany’staxburdenandnegativelyimpactitsoverallfinancialperformance.Thecompanywillcontinuetocloselymonitortaxpolicydevelopmentsandadjustitstaxplanningstrategiesinatimelymannertomitigatepotentialimpacts.
(3)InterestRateRiskThecompany’sinterestrateriskprimarilyarisesfromitsfinancingactivities,includingbankloans.Specifically,liabilitieswithfloatinginterestratesexposethecompanytocashflowinterestraterisk,whilefixed-rateliabilitiesposefairvalueinterestraterisk.Thefinancedepartmenthasimplementedaninterestrateriskmonitoringframeworkandactivelyadjuststhemixoffixed-andfloating-ratedebtbasedonmarketinterestratetrends.However,ariseinmarketinterestratesmayincreasethecostofnewborrowingsandtheinterestexpenseonexistingfloating-ratedebt,whichcouldadverselyaffectthecompany’sprofitability.
7.RisksAssociatedwithCross-BorderM&A
InNovember2024,thecompanyenteredintoanassetpurchaseagreementwithKyowaHakkotoacquireitsfood-gradeaminoacid,pharmaceuticalaminoacid,andHMObusinessesalongwithrelatedassets.Giventhecomplexityofthetransactionstructure—wherebothpartiesarelistedentitiesinChinaandJapan,respectively—andthefactthatthetargetassetsinvolvelegal,financial,tax,andcompliancemattersacrossmultiplejurisdictions,thetransactionentailsseveralpotentialrisksdespitethecompany’sengagementofprofessionalfinancial,tax,andlegaladvisorstosupportduediligence,agreementexecution,andclosingprocesses:
(1)ClosingRisk
Theagreementoutlinesspecificpre-closingandpost-closingconditions.Thecompanyisactivelycoordinatingwithrelevantauthoritiestofacilitateasmoothcompletionofthetransaction.However,iftheclosingconditionsarenotmetasscheduled,thedealmayfailtoclose.Thecompanywillcloselymonitorthetransactionprogressandfulfillitsdisclosureobligationsinatimelymanner.Investorsareadvisedtoremainawareoftheassociatedrisks.
(2)Post-AcquisitionIntegrationRisk
Uponcompletion,thecompanywillexpanditsbusinessportfoliotoincludefood-gradeaminoacids,pharmaceuticalaminoacids,andHMOs,andwillestablishoverseasoperatingentities.Integrationeffortswillspansupplychaincoordination,productionprocessoptimization,straindevelopment,andteamintegration.However,duetotheinherentcomplexityofcross-bordermergersandacquisitions,theintegrationoutcomeremainsuncertainandmayaffecttheoperationalefficiencyandsynergyrealizationofthecombinedbusinesses.
(3)ForceMajeureRisk
Significantchangesinlawsandregulations,naturalenvironments,orbusinessconditionsintheregionswherethetargetassetsarelocatedmayadverselyaffectongoingoperationsandtheexecutionofintegrationplans.Thecompanywillcontinuetoassessrelevantrisksandtakeappropriateactionstomitigatepotentialimpactsandsafeguardtheinterestsofthecompanyanditsshareholders.
8.RiskofImproperControlbytheActualControllers
Asoftheendofthereportingperiod,MengQingshan,WangAijun,andHeJuncollectivelyheld
33.34%ofthecompany’sshares,makingthemtheactualcontrollersofthecompany.Whilethecompanyhasestablishedarelativelysoundcorporategovernanceframeworkandinternalcontrolsystem,withstrictrulesinplacetoregulatetheconductofcontrollingshareholdersandactualcontrollersinordertoprotecttheinterestsofminorityshareholders,thereremainsariskthattheactualcontrollersmayexerciseinfluence—eitherdirectlyorindirectly—throughvotingrights,managementauthority,orothermeans.Suchinfluencecouldaffectthecompany’sstrategicplanning,operationaldecisions,personnelappointments,andprofitdistribution,andmaypotentiallyharmtheinterestsofthecompanyanditsminorityshareholders.
(V)Miscellaneous?Applicable√Notapplicable
VII.ExplanationofcircumstanceswheretheCompanydoesnotdiscloseinformationaccordingtothestandardsduetospecialreasons,suchasthestandardsnotapplicabletotheCompanyortheinformationclassifiedasstatesecretortradesecret,andthereasons?Applicable√Notapplicable
Section4CorporateGovernance
I.InformationofCorporateGovernance
√Applicable?Notapplicable
In2024,theCompany’sAuditDepartment,withriskcontrolasitscoreobjectiveandinternalcontrolreviewasitskeyapproach,establishedaclosed-loopinspectionmechanismtoachieveend-to-endcoverageofcriticalbusinessareassuchasfunds,entrustedstorage,procurement,assets,inventory,cost,projects,andhumanresources.Thedepartmentfocusedoncompliancereview,resourceswasteprevention,andpotentiallossmanagement,systematicallyidentifyingweaknessesandriskpointsindailyoperations,therebyenhancingthecompany’sabilitytomanage,transfer,andmitigaterisks.Thecontinuousoptimizationoftheinternalcontrolsystemandriskmanagementmechanismsprovidedstrongsupportandassuranceforbusinessdecision-making.
Intermsofentrustedstorageprojectmanagement,thecompanyenhancedoversightofentrustedcornstorageprojectsinTongliao,Jilin,andXinjiang.Itstrictlyimplementedmanagementstandardsforentrustedcornstorageandcarriedoutdynamicmonitoringthroughouttheprocess.On-siteinspectionsandsealedinventorycheckswereconductedtosystematicallyverifystoragequantities,grainquality,facilityoperations,safetycontrols,andtheperformanceofon-sitepersonnel.Inresponsetodiscrepanciesininboundinventoryidentifiedduringsealedinspections,adedicatedtaskforcewasformedatthecompanyleveltomanagerectificationthroughaproblem-trackingledgerandensuredfollow-through,thusformingaclosed-loopmanagementcycle.
Inassetmanagement,theAuditDepartmentrevisedassetinspectionstandardstostrengthenthemanagementfoundation,promoteeffectiveimplementationofrelevantsystems,andimprovetheperformanceofassetaccountingpositions.Forexpensemanagement,targetedinspectionscoveredtheXinjiang,Tongliao,andJilinbasesaswellasthegroupheadquarters.Thesamplingscopeandsamplesizewereadjusteddynamicallybasedonthematerialityoffinancialstatementstosystematicallyassesscomplianceinexpenseaccountingandthequalityofaccountingexecution,identifykeyrisksinexpensemanagement,andprovideimprovementrecommendations.Infundmanagement,comprehensivereviewswerecompletedcoveringmonthlykeyiteminventories,bankacceptances,blankchecks,bankreconciliations,aswellasquarterlyfinancing,wealthmanagement,financialderivatives,andbankaccountopeningsandclosures.Issuesidentifiedwereaddressedpromptlythroughsupervisedrectification.
Inprocurementmanagement,specialauditswereconductedoncorn,coal,andhardwarematerials.Theend-to-endcomplianceofauxiliarymaterialandpackagingprocurement—fromthebusinesssidetothefinancialside—wassystematicallyreviewed.Theprocurementinternalcontrolmechanismwasoptimizedtostrengthenriskprevention.Inqualitymanagement,multi-dimensionalauditswere
conductedbasedonkeycontrolnodesinthequalitycontrolsystem.Theseauditswereguidedbyprocesssteps,riskfactors,reviewfocusareas,andinspectionmethods.Identifiedissueswerecompiledintoachecklist,andspecificrectificationplansweredevelopedtoachieveclosed-loopqualitymanagement.Inprocessmanagement,inventoryandexpensemanagementprocessesat16financialnodesacrossfourlocationswerereviewed.Diagnosticreportsandquantitativeevaluationscoreswereissued.Accompanyingrectificationsuggestionswereprepared,andimplementationprogresswascloselytracked.Byevaluatingtheperformanceofvariousroles,responsibilitieswerereinforced,riskswereaccuratelyidentified,andcontrolstrategieswereformulatedtosupporttheFinanceDepartmentinsystemoptimizationandmanagementimprovement.Inhumanresourcesmanagement,specialinspectionswerecarriedoutonHRoperationsattheXinjiangandJilinbases.AstandardizedinspectionframeworkwasdevelopedtosolidifyHRmanagementfoundations,identifypotentialrisks,andformulatetargetedresponsemeasures.Intermsofsecuritiesbusinesssupervision,multi-dimensionalcompliancereviewswereconductedacrosskeyareassuchasinformationdisclosure,investorcommunicationmechanisms,complianceofrelated-partytransactions,riskcontrolinexternalguarantees,investmentdecision-makingprocesses,capitaloperations,andexecutivecompensationsystems.Issuesidentifiedwerepromptlyrectified,andcomplianceassessmentreportswereproduced.Inaddition,on-siteauditinvestigationswereconductedforsafety-relatedincidents,aimingtoestablishfacts,determineresponsibilities,issuepenalties,identifymanagementloopholes,andensurefollow-upandcorrectiveactions.
Alignedwiththecompany’ssustainabilitystrategy,theAuditDepartmentalsocompletedareassessmentoftheanti-briberycompliancesystemincollaborationwithexternallegalcounsel,furtherstrengtheningbothinternalandexternalcompliancemanagement.
Duringthereportingperiod,theAuditDepartmentactivelyorganizedandsupportedZandar(Shenzhen)CPAsLLPinconductingthecompany’s2024internalcontrolreviewandassessment.Nosignificantinternalcontroldeficiencieswereidentified.Forgeneraldeficiencies,theAuditDepartmentworkedwithrelevantdepartmentstoformulateandimplementrectificationplans,allofwhichwerecompleted,effectivelyimprovingtheoverallinternalcontrollevelofthecompany.
ArethereanysignificantdifferencesbetweentheCompany’scorporategovernanceandthelaws,administrativeregulations,andtheCRSC’srulesonthegovernanceoflistedcompanies?Ifyes,statethereasons.?Applicable√NotapplicableII.TheCompany’scontrollingshareholdersandactualcontroller’sspecificmeasuresthatensuretheCompany’sindependenceinassets,personnel,finance,institution,andbusiness,aswellassolutions,workprogress,andsubsequentworkplansthataffecttheCompany’sindependence?Applicable√NotapplicableCircumstanceswherethecontrollingshareholder,theactualcontroller,orotherentitiesundertheircontrolareengagedinthesameorsimilarbusinessastheCompany,ortheimpactofthecompetitive
businessorasubstantialchangeinthecompetitivebusinessontheCompany,thecountermeasurestaken,theprogressofthecountermeasures,andsubsequentplansforsolvingtheissue?Applicable√NotapplicableIII.OverviewofGeneralMeetings
| Meeting | Date | Searchindexofthedesignatedwebsiteonwhichtheresolutionwaspublished | Resolutiondisclosuredate | Resolutions |
| 1stextraordinarygeneralmeetingof2024 | February1,2024 | http://www.sse.com.cn | February2,2024 | TheProposalonExtendingtheDurationoftheCompany’s2021EmployeeStockOwnershipPlan,theProposalontheCompany’sEmployeeStockOwnershipPlanfor2024anditsSummary,theProposalontheManagementMeasuresfortheCompany’sEmployeeStockOwnershipPlanfor2024,andtheProposalonAuthorizingtheBoardofDirectorstoHandleMattersRelatedtotheEmployeeStockOwnershipPlanatItsFullDiscretionweredeliberatedandapprovedatthemeeting. |
| Annualgeneralmeetingof2023 | April8,2024 | http://www.sse.com.cn | April9,2024 | TheproposalsontheBoardofDirectorsandSupervisoryBoardworkreportsfor2023,the2023AnnualReportanditsSummary,the2023FinancialStatements,the2024BudgetProposal,the2023ProfitDistributionProposal(Preliminary),theProposalonGuaranteefor2024toSubsidiaries,theProposalonFinancialDerivativeTradingBusiness,theProposalonUsingIdleFundstoPurchaseWealthManagementProducts,theProposalonChangingtheFinancialReportAuditandInternalControlAuditInstitutions,the2024MajorInvestmentPlanProposal,theProposalonPerformanceEvaluationandCompensationofDirectors,Supervisors,andSeniorManagementfor2023,andtheProposalonthe2024CompensationSchemeforDirectors,Supervisors,andSeniorManagementweredeliberatedandapprovedatthemeeting.DetailedcontentisavailableintherelevantannouncementspublishedontheShanghaiStockExchangewebsite. |
| 2ndextraordinarygeneralmeetingof2024 | October11,2024 | http://www.sse.com.cn | October12,2024 | Theproposalsonchangingthecompany’sregisteredcapital,revisingcertainprovisionsoftheArticlesofAssociation,repurchasingcompanysharesthroughcentralizedbidding,authorizingtheBoardofDirectorstohandlesharerepurchasematters,andthe2024Half-YearProfitDistributionProposal(Preliminary)weredeliberatedandapprovedatthemeeting.DetailedcontentisavailableintherelevantannouncementspublishedontheShanghaiStockExchangewebsite. |
Anyextraordinarygeneralmeetingconvenedattherequestofpreferredshareholderswithrestoredvotingrights?Applicable√NotapplicableExplanationofgeneralmeetings
√Applicable?NotapplicableDuringtheReportingPeriod,theCompanyheldthreegeneralmeetings,includingoneannualgeneralmeetingandtwoextraordinarygeneralmeetings.Therewasnorejectionofproposalsatthegeneralmeetings.
IV.InformationofDirectors,Supervisors,andOfficers(I)Changesinthesharesheldbyandremunerationofthedirectors,supervisors,andofficerscurrentlyinofficeandthosewhoresignedduringtheReportingPeriod
√Applicable?Notapplicable
Unit:share
| Name | Position | Gender | Age | Startdateoftermofoffice | Enddateoftermofoffice | Numberofsharesheldasatthebeginningoftheyear | Numberofsharesheldasattheendoftheyear | Changeintheshares | Reasonsforthechange | Totalbefore-taxremunerationreceivedfromtheCompanyduringtheReportingPeriod(‘0000yuan) | AnyremunerationreceivedfromarelatedpartyoftheCompany |
| WangAijun | Chairman | F | 53 | January16,2017 | January6,2026 | 71,316,274 | 72,452,774 | 1,136,500 | Increaseofshareholdinginthesecondarymarket | 201 | No |
| HeJun | DirectorandGeneralManager | M | 51 | January16,2017 | January6,2026 | 23,449,758 | 24,584,458 | 1,134,700 | Increaseofshareholdinginthesecondarymarket | 318 | No |
| LiangYubo | DirectorandDeputyGeneralManager | M | 61 | January21,2011 | January6,2026 | 53,668,518 | 54,474,218 | 805,700 | Increaseofshareholdinginthesecondarymarket | 388 | No |
| LuChuang | IndependentDirector | M | 45 | January6,2023 | January6,2026 | 0 | 0 | 20 | No | ||
| LiuXinghua | IndependentDirector | M | 58 | January6,2023 | January6,2026 | 0 | 0 | 20 | No | ||
| ChangLibin | ChairmanofBoardofSupervisors | M | 56 | January16,2017 | January6,2026 | 0 | 577,300 | 577,300 | Increaseofshareholdinginthesecondarymarket | 396 | No |
| LiuQiang | Supervisor | M | 55 | January6,2023 | January6,2026 | 0 | 0 | 60 | No | ||
| LiuXiaojing | StaffSupervisor | F | 50 | January6,2023 | January6,2026 | 0 | 0 | 45 | No | ||
| WangYou | DeputyGeneralManager | M | 50 | January16,2017 | January6,2026 | 294,600 | 673,000 | 378,400 | Increaseofshareholdinginthesecondary | 271 | No |
| market | |||||||||||
| WangLihong | CFO | F | 44 | September6,2019 | January6,2026 | 62,400 | 117,300 | 54,900 | Increaseofshareholdinginthesecondarymarket | 147 | No |
| LiuXianfang | BoardSecretary | F | 41 | January16,2017 | January6,2026 | 156,600 | 187,400 | 30,800 | Increaseofshareholdinginthesecondarymarket | 71 | No |
| Total | / | / | / | / | / | 148,948,150 | 153,066,450 | 4,118,300 | / | 1,937 | / |
Explanationofthestatisticalbasisforthe“totalbefore-taxremunerationreceivedfromtheCompanyduringtheReportingPeriod:”Inpreviousannualreports,thestatisticalbasisistheremuneration(beforetax)paidtothedirectors,supervisors,andofficersinthepayrollforacompleteaccountingyear.Inthe2023annualreport2023,theaccrualbasisisused.Inotherwords,thetotalbefore-taxremunerationofthedirectors,supervisors,andofficersfor2023isnotinclusiveoftheamountdeferredtotheReportingPeriodbutisinclusiveoftheamountdeferredtosubsequentyears.
| Name | Mainworkingexperience |
| WangAijun | HerpreviouspositionsincludegeneralmanagerofMeihuaMSGanddirectorandgeneralmanagerofMeihuaGroup.SheisthechairmanofMeihuaGroupnow. |
| HeJun | HispreviouspositionsincludeplantdirectoranddepartmentmanageratMeihuaMSGanddirectorandgeneralmanagerofMeihuaGroup.HeisadirectorandthegeneralmanagerofMeihuaGroupnow. |
| LiangYubo | HispreviouspositionsincludedepartmentmanagerandgeneralmanagerofthemarketingcenteratMeihuaMSGanddirectoranddeputygeneralmanagerofMeihuaGroup.HeisadirectorandthedeputygeneralmanagerofMeihuaGroupnow. |
| LiuXinghua | Hewasbornin1967andisaChinesenationalandoftheHanethnicgroup.HeholdsaPhDinManagementScienceandEngineeringandanEMBAfromTsinghuaUniversity.HeisadistinguishedprofessoratTongjiUniversity.Mr.LiuXinghuahasbeenanindependentdirectoratLihuayiWeiyuanChemicalCo.,Ltd.(shortstockname:WeiyuanCo.;stockcode:600955)sinceDecember2021,andanindependentdirectoratShengtaiSmartManufacturingGroupCo.,Ltd.(shortstockname:ShengtaiGroup;stockcode:605138)sinceJuly2024.HehasbeenanindependentdirectorattheCompanysinceJanuary6,2023.Mr.LiuXinghuaisnotassociatedwiththeCompany’sactualcontrolleranddoesnotholdanysharesintheCompany.HehasobtainedthequalificationcertificateforindependentdirectorsfromtheShanghaiStockExchangeandreceivedthefollow-uptrainingcertificateforindependentdirectorsoflistedcompaniesfromtheShanghaiStockExchangeinJanuary2024. |
| LuChuang | Hewasbornin1980andisaChinesenationalandoftheHanethnicgroup.HeholdsaPhDinManagementandhasbeenaprofessorattheSchoolofAccountancyattheCentralUniversityofFinanceandEconomicssinceNovember2015.Mr.LuChuanghasbeenanindependentdirectoratOurpalmCo.,Ltd.(shortstockname:Ourpalm;stockcode:300315)sinceJanuary2021,anindependentdirectoratChinaIsotope&RadiationCorporation(shortstockname:CIRC;stockcode:01763.HK)sinceFebruary2021,andanindependentdirectoratBeijingBashiMediaCo.,Ltd.(shortstockname:BeibaMedia;stockcode:600386)sinceJune2022.HehasbeenanindependentdirectorattheCompanysinceJanuary6,2023.Mr.LuChuangisnotassociatedwiththeCompany’sactualcontrolleranddoesnotholdanysharesintheCompany.Hehas |
| obtainedthequalificationcertificateforindependentdirectorsfromtheShanghaiStockExchangeandreceivedthefollow-uptrainingcertificateforindependentdirectorsoflistedcompaniesfromtheShanghaiStockExchangeinAugust2024. | |
| ChangLibin | Hewasbornin1969andisaChinesenationalandoftheHanethnicgroup.HejoinedtheformerMeihuaGroupinFebruary2005andservedasheadofengineeringattheCompany’sTongliaoBase,headofprojecttechnologyatXinjiangCompany,andheadoftheengineeringcompany.HeiscurrentlytheheadoftheCompany’sbusinessunitsforpharmaceuticalandxanthangumproducts,aswellastheChairmanoftheSupervisoryCommittee. |
| LiuQiang | Hewasbornin1970andisaChinesenationalandoftheHanethnicgroup.HejoinedtheformerMeihuaGroupin1999andservedasexecutivedeputygeneralmanagerofthemarketingcenter,headofthefoodrawmaterialsofficeatthesalescompany,andheadofthesalesdepartmentfordomesticsalesoffood.NowheservesassalesmanageratthesalescompanyandsupervisorattheCompany. |
| LiuXiaojing | Shewasbornin1975,andhernativeplaceisBaoding,Hebei.ShejoinedMeihuaHebeiin2001.HerpreviouspositionsincludeseniormanagerofthefinanceofficeatTongliaoMeihuaandheadofthefinanceofficeatTongliaoMeihua.NowsheservesasprojectheadattheassetmanagementofficeofthefinancedepartmentandstaffsupervisoroftheCompany. |
| WangYou | Hewasbornin1975andisaChinesenational.Heholdsabachelor’sdegreeandisamemberoftheCPC.HejoinedMeihuaMSGinJuly2002.Hispreviouspositionsincludemanageroftheproductionoffice,manageroftheaminoacidprojectdepartment,productionmanagerforeasternTongliao,deputygeneralmanageratTongliaoMeihua,andgeneralmanageroftheXinjiangBase.NowheservesastheDeputyGeneralManageroftheCompany. |
| WangLihong | Shewasbornin1981andisaChinesenational.SheisamemberoftheCPC.ShegraduatedfromTianjinUniversityofCommerceasamajorinaccounting.Sheisacertifiedpublicaccountant.Since2005,shehasservedasanaccountant,accountingsupervisor,accountingmanager,andgeneralledgeraccountantinthefinancedepartmentofMeihuaGroup.Shehasextensiveexperienceandexpertiseinfinancialaccounting,financialanalysis,andfinancialmanagement.NowsheistheCFOoftheCompany. |
| LiuXianfang | Shewasbornin1984andisaChinesenational.Sheholdsabachelor’sdegree.ShejoinedtheCompanyinJuly2006.Herpreviouspositionsincludeinformationdisclosurespecialist,informationdisclosuresupervisor,andcorporatesecuritiesrepresentativeinthesecuritiesdepartmentoftheCompany.SheistheboardsecretaryoftheCompany. |
Otherinformation?Applicable√Notapplicable
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(II)Positionsheldbythedirectors,supervisors,andofficerscurrentlyinofficeandthosewhoresignedduringtheReportingPeriod
1.Positionsheldinshareholders?Applicable√Notapplicable
2.Positionsinotherentities
√Applicable?Notapplicable
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Nameofpersonnel
| Nameofpersonnel | Nameofentity | Positionintheentity | Startdateofthetermofoffice | Enddateofthetermofoffice |
| LuChuang | OurpalmCo.,Ltd. | IndependentDirector | January25,2021 | |
| ChinaIsotope&RadiationCorporation | IndependentDirector | February25,2021 | ||
| BeijingBashiMediaCo.,Ltd. | IndependentDirector | June28,2022 | ||
| LiuXinghua | LihuayiWeiyuanChemicalCo.,Ltd. | IndependentDirector | December22,2021 | |
| SunriseIntelligentManufacturingGroupCo.,Ltd. | IndependentDirector | July17,2024 | ||
| WangAijun | AIMVaccineCorporation | Director | September2017 | |
| ChangLibin | TongliaoDeshengBio-techCo.,Ltd. | Supervisor | March2019 | |
| LiuQiang | TibetHezhongInvestmentCo.,Ltd. | DirectorandGeneralManager | July4,2014 | March14,2024 |
| Explanationofpositionsinotherentities | TibetHezhongInvestmentCo.,Ltd.wasderegisteredonMarch14,2024. | |||
(III)Remunerationofdirectors,supervisors,andofficers
√Applicable?Notapplicable
| Proceduresfordeterminingtheremunerationofdirectors,supervisors,andofficers | TheremunerationfortheCompany’sdirectorsandnon-staffsupervisorsisdeterminedbythegeneralmeetingafterbeingreviewedandapprovedbytheboardofdirectors.Theremunerationforofficersisdeterminedbytheboardofdirectorsafterbeingsubmittedbythegeneralmanager’sofficetotheremunerationandappraisalcommitteeoftheboard.TheremunerationforstaffsupervisorsisdeterminedbasedontheirpositionsandpositionlevelsandinaccordancewiththeCompany’sinternalHRmanagementpolicy. |
| Dothedirectorsavoidparticipatinginthediscussionoftheirownremuneration? | Yes |
| Circumstanceswheretheremunerationandappraisalcommitteeoranymeetingsofindependentdirectorsissueopinionsontheremunerationofdirectors,supervisors,andofficers | Atthe2ndmeetingof2025oftheCompany’sremunerationandappraisalcommittee,theremunerationreportfordirectors,supervisors,andseniormanagementfor2024wasreviewedandapproved,andthe2024remunerationpaymentproposalfordirectors,supervisors,andseniormanagementwasagreedtobesubmittedtotheboardofdirectorsfordeliberation. |
| Basisfordeterminingtheremunerationofdirectors,supervisors,andofficers | AccordingtotheCompany’s2024RemunerationPlanforDirectors,Supervisors,andSeniorManagement,thosewhoreceiveremunerationfromtheCompanyandactuallyperformmanagementdutiesaresubjecttoanannualsalarysystemthatcombinesposition-basedsalarygradeswithperformanceevaluations.InaccordancewiththeCompany’sperformanceevaluationmanagementregulations,thetotalremunerationconsistsofbasesalary,positionsalary,performance-basedpay,andincentivebonuses.TheHumanResourcesDepartmentregularlypreparesremunerationreports,whicharesubmittedtotheRemunerationandAppraisalCommitteeforreview.TheCommitteeconfirmsthefinalremunerationbasedoncomprehensiveevaluations,includingjobresponsibilitiesandperformance. |
| Actualpaymentoftheremunerationof | Onanaccrualbasis,thedirectors,supervisors,andofficersreceivedatotalremunerationof |
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directors,supervisors,andofficers
| directors,supervisors,andofficers | 19.37millionyuan(beforetax)fromtheCompanyin2024.DuringtheReportingPeriod,themonthlysalaryandperformancepaywerepaid.SomeannualpayandincentiveswerepaidinMarch2025. |
| Totalremunerationactuallyreceivedbyalldirectors,supervisors,andofficersasoftheendoftheReportingPeriod | ThetotalremunerationactuallyreceivedfromtheCompanybythedirectors,supervisors,andofficersin2024was58.30millionyuan(beforetax),inclusiveofdefermentsfrompreviousperiodstotheReportingPeriod. |
(IV)Changesindirectors,supervisors,andofficers?Applicable√Notapplicable(V)Explanationofpunishmentsbysecuritiesregulatorybodiesduringthelastthreeyears?Applicable√Notapplicable(VI)Miscellaneous?Applicable√NotapplicableV.InformationofBoardMeetingsHeldduringtheReportingPeriod
| Meeting | Date | Resolutions |
| The8thMeetingofthe10thBoardofDirectors | January16,2024 | TheProposalontheCompany’sEmployeeStockOwnershipPlanfor2024anditsSummary,theProposalontheManagementMeasuresfortheCompany’sEmployeeStockOwnershipPlanfor2024,theProposalonAuthorizingtheBoardofDirectorstoHandleMattersRelatedtotheEmployeeStockOwnershipPlan,andtheProposalonConveningthe1stExtraordinaryGeneralMeetingof2024weredeliberatedandapprovedatthemeeting. |
| The9thMeetingofthe10thBoardofDirectors | March18,2024 | TheProposalontheBoardofDirectors’WorkReportfor2023,theProposalonthe2023AnnualReportandItsSummary,theProposalonthe2023FinancialFinalAccountsReport,theProposalontheProfitDistributionPlan(Draft)for2023,theProposalontheInternalControlEvaluationReportandtheInternalControlAuditReportfor2023,theProposalonProvidingGuaranteestoWholly-OwnedSubsidiariesin2024,theProposalonConductingFinancialDerivativeTradingBusiness,theProposalonUsingIdleOwnFundstoPurchaseWealthManagementProducts,theProposalonChangingtheFinancialStatementAuditor,theProposalonthePerformanceAppraisalandRemunerationPaymentPlanforDirectors,Supervisors,andSeniorManagementfor2023,andproposalsonrevisingrelevantworkrulesweredeliberatedandapprovedatthemeeting.Fordetails,pleaserefertotherelevantannouncementspublishedonthewebsiteoftheShanghaiStockExchange. |
| The10thMeetingofthe10thBoardofDirectors | April8,2024 | Theproposalonthe2024Q1reportwasdeliberatedandapprovedatthemeeting. |
| The11thMeetingofthe10thBoardofDirectors | July29,2024 | Theproposalsonthe2024semi-annualreportanditssummary,theadjustmentoftheShanghaiR&Dcenterintoawhollyownedsecond-tiersubsidiary,thecapitalincreasetoTongliaoJianlongAcid-makingCo.,Ltd.,andtherevisionstotheRulesofProcedurefortheRemunerationandAppraisalCommittee,theInternalControlPolicyforFinancialDerivativesBusiness,andtheInformationDisclosureManagementPolicyweredeliberatedandapprovedatthemeeting. |
| The12thMeetingofthe10thBoardofDirectors | August29,2024 | TheproposalsonwaivingthenoticeperiodfortheboardmeetingandonthetransferofequityinZefengAgriculturebythesubsidiaryXinjiangAgriculturetoZetongAgricultureweredeliberatedandapprovedatthemeeting. |
| The13thMeetingofthe10thBoardofDirectors | September23,2024 | TheproposalsonchangingtheCompany’sregisteredcapital,amendingcertainprovisionsoftheArticlesofAssociation,repurchasingtheCompany’ssharesviacentralizedbidding,authorizingtheboardofdirectorstohandlemattersrelatedtothesharerepurchase,the2024“EnhancingQuality,ImprovingEfficiency,andMaximizingReturns”actionplan,the2024interimprofitdistributionplan(draft),andconveningtheCompany’ssecond |
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extraordinarygeneralmeetingof2024weredeliberatedandapprovedatthemeeting.
| extraordinarygeneralmeetingof2024weredeliberatedandapprovedatthemeeting. | ||
| The14thMeetingofthe10thBoardofDirectors | October11,2024 | Theproposalonauthorizationforexternalinvestmentwasalsodeliberatedandapproved. |
| The15thMeetingofthe10thBoardofDirectors | October22,2024 | TheproposalontheCompany’sQ32024reportwasdeliberatedandapproved. |
| The16thMeetingofthe10thBoardofDirectors | November22,2024 | TheproposalsonassetacquisitionandthesigningoftheShareandAssetPurchaseAgreement,theproposalonprovidingguaranteestowhollyownedsubsidiaries,andtheproposalontheestablishmentofawhollyownedsubsidiarybyXinjiangMeihuaweredeliberatedandapproved. |
VI.DutyPerformanceofDirectors(I)Directors’participationinboardmeetingsandgeneralmeetings
| Nameofdirector | Whetherthedirectorisanindependentdirector | Attendanceatboardmeetings | Participationingeneralmeetings | |||||
| Dueattendancefortheyear | Attendanceinperson | Attendancebymeansoftelecommunication | Attendancebyproxy | Absence | Failedtoattendtwoconsecutivemeetingsinperson | Attendanceatgeneralmeetings | ||
| WangAijun | No | 9 | 9 | 1 | 0 | 0 | No | 3 |
| HeJun | No | 9 | 8 | 2 | 1 | 0 | No | 3 |
| LiangYubo | No | 9 | 9 | 1 | 0 | 0 | No | 3 |
| LuChuang | Yes | 9 | 9 | 5 | 0 | 0 | No | 3 |
| LiuXinghua | Yes | 9 | 9 | 7 | 0 | 0 | No | 3 |
Explanationoffailuretoattendtwoconsecutivemeetingsinperson?Applicable√Notapplicable
| Numberofboardmeetingsheldintheyear | 9 |
| including:numberofonsitemeetings | 2 |
| numberofmeetingsheldbymeansoftelecommunication | 1 |
| numberofmeetingsheldonsiteandbymeansoftelecommunication | 6 |
(II)Circumstanceswheredirectorsraisedanobjectiontoanymatter?Applicable√Notapplicable(III)Miscellaneous?Applicable√NotapplicableVII.InformationofSpecializedCommitteesundertheBoardofDirectors
√Applicable?Notapplicable(I)Membersofthespecializedcommitteesundertheboardofdirectors
| Typeofspecialcommittee | Membernames |
| AuditCommittee | LuChuang,LiuXinghua,WangAijun |
| NominationCommittee | LiuXinghua,LuChuang,WangAijun |
| RemunerationandAppraisalCommittee | LiuXinghua,LuChuang,HeJun |
| StrategyCommittee | WangAijun,HeJun,LiangYubo,LuChuang,LiuXinghua |
(II)TheauditcommitteeheldfivemeetingsduringtheReportingPeriod.
| Date | Content | Importantopinionsandsuggestions | Otherdutyperformance |
| January16,2024 | Pre-auditcommunicationwasconducted | Themeetingcommunicatedanddiscussedthe |
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withDahuaAudit,coveringtheoverallauditoftheannualreportandinternalcontrols,keyfocusareas,auditplan,etc.Thecompany’sauditdepartmentreportedonthepreviousyear’sworksummaryandtheworkplanfortheupcomingyear.
| withDahuaAudit,coveringtheoverallauditoftheannualreportandinternalcontrols,keyfocusareas,auditplan,etc.Thecompany’sauditdepartmentreportedonthepreviousyear’sworksummaryandtheworkplanfortheupcomingyear. | auditplanwiththeauditinstitution,andsuggestionsweremade.Itwasagreedtoproceedwiththeauditaccordingtotheplan,withtherecommendationthatDahuaAuditpromptlycommunicatesandprovidesfeedbacktothecompanyduringtheauditprocess.ThemeetingalsoagreedtotheAuditDepartment’sworkplanfor2024. | |
| March18,2024 | Anumberofproposalswerereviewed,includingthe2023AnnualReport,theAuditCommittee’s2023DutyPerformanceReport,theInternalControlEvaluationReportandtheInternalControlAuditReport,theAccountingPolicyChanges,thePerformanceoftheEngagedAccountingFirm,andtheProposalforChangingtheAuditInstitution. | The2023AnnualReportpreparedbythecompanyaccuratelyandfairlyreflectsthecompany’sbusinessperformancefor2023.Themeetingagreedtosubmittherelevantproposalstotheboardofdirectorsfordeliberationandemphasizedtheneedtofocusontheprocessofchangingtheaccountingfirm. |
| April8,2024 | ThemainauditworksummaryforQ12024andtheworkplanforQ22024werereviewed;theQ12024reportwaspreliminarilyexamined. | The2024Q1reportpreparedbythecompanyaccuratelyandfairlyreflectsthecompany’sbusinessperformanceforthefirstquarterof2024.Themeetingagreedtosubmitittotheboardofdirectorsfordeliberation,andsuggestedfurtheroptimizationoftheinternalauditworkbytheAuditDepartment. |
| July29,2024 | ThemainauditworksummaryforQ22024andtheworkplanforQ32024werereviewed;theHalf-YearReportfor2024waspreliminarilyexamined. | The2024Half-YearReportpreparedbythecompanyaccuratelyandfairlyreflectsthecompany’sbusinessperformanceforthefirsthalfof2024.ThemeetingagreedtosubmitittotheboardofdirectorsfordeliberationandendorsedtheAuditDepartment’sworkplanforQ3. |
| October22,2024 | ThemainauditworksummaryforQ32024andtheworkplanforQ42024werereviewed;theQ32024reportwaspreliminarilyexamined. | The2024Q3reportpreparedbythecompanyaccuratelyandfairlyreflectsthecompany’sbusinessperformanceforthethirdquarterof2024.ThemeetingagreedtosubmitittotheboardofdirectorsfordeliberationandendorsedtheAuditDepartment’sworkplanforQ4. |
(III)TheremunerationandappraisalcommitteeheldtwomeetingsduringtheReportingPeriod.
| Date | Content | Importantopinionsandsuggestions | Otherdutyperformance |
| January16,2024 | TheProposalonthe2024EmployeeStockOwnershipPlan(Draft)anditssummarywasdeliberatedandapprovedatthemeeting. | Themeetingagreedtosubmittheproposalstotheboardofdirectorsfordeliberation. | |
| March18,2024 | The2023performanceappraisalandremunerationpaymentplanfordirectors,supervisors,andofficerswasdeliberatedandapproved,andthe2024remunerationscheme(Draft)fordirectors,supervisors,andofficerswasformulated. | Themeetingagreedtosubmittheproposalstotheboardofdirectorsfordeliberation. |
(IV)ThestrategycommitteeheldtwomeetingsduringtheReportingPeriod.
| Date | Content | Importantopinionsandsuggestions | Otherdutyperformance |
| March18,2024 | ThemeetingreviewedtheCompany’smajorinvestmentplanfor2024. | Keydiscussionsfocusedonthescaleandplanoffutureinvestments,andthemeetingagreedtosubmittheproposaltotheboardofdirectorsfordeliberation. | |
| November22,2024 | Themeetingconducteda | Attentionwasgiventotheliabilitiesofthe |
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preliminaryreviewoftheassetacquisitionandthesigningoftheShareandAssetPurchaseAgreement.
| preliminaryreviewoftheassetacquisitionandthesigningoftheShareandAssetPurchaseAgreement. | targetassetsandsubsequentplanningissues,andthemeetingagreedtosubmittheproposaltotheboardofdirectorsfordeliberation. |
(V)Circumstanceswhereanobjectionwasraisedtoanymatter?Applicable√NotapplicableVIII.ExplanationofCircumstancesWheretheBoardofSupervisorsIdentifiedRisksintheCompany?Applicable√NotapplicableTheboardofsupervisorshadnoobjectionstosupervisedmattersduringtheReportingPeriod.IX.StaffOverviewoftheParentCompanyandKeySubsidiariesasattheendoftheReportingPeriod(I)Staffoverview
| Headcountoftheparentcompany | 1,076 |
| Headcountofkeysubsidiaries | 11,782 |
| Totalheadcount | 12,858 |
| Numberofretireesforwhomtheparentcompanyandkeysubsidiariesarerequiredtobearcosts | |
| Specialty | |
| Typeofspecialty | Numberofemployees |
| Productionpersonnel | 9,325 |
| Salespersonnel | 320 |
| Technicalpersonnel | 575 |
| Financialpersonnel | 353 |
| Administrativepersonnel | 120 |
| Managementpersonnel | 2,165 |
| Total | 12,858 |
| Educationallevel | |
| Educationallevel | Numberofemployees |
| PhD | 35 |
| Master’sdegreeandabove | 272 |
| Bachelor’sdegree | 1,947 |
| Diploma | 4,319 |
| Highschoolandbelow | 6,285 |
| Total | 12,858 |
(II)Remunerationpolicy
√Applicable?Notapplicable
TheCompanyhasconsistentlyupheldthephilosophyof“allstaffinvolvedinbusiness,valuecreationandsharing,”andadherestothecompensationprinciplesof“threefairnessesandonemore”(fairness,impartiality,transparency,andmorepayformorework)and“threehighsandonelow”(high
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performance,highincentives,highgrowth,andlowrisk).Bymaintainingacompetitiveremunerationandincentivesystem,theCompanycontinuestoattractalargenumberofoutstandingtalentsandremainsaleaderincompensationlevelswithinboththeindustryandtheregion.Inrecentyears,theCompanyhasfurtherincreasedinvestmentinhumanresourcesandestablishedasoundsalaryadjustmentmechanismtoenhanceemployeewelfare.In2024,theCompanyallocatedover100millionyuantoimplementa10%generalsalaryincreaseforallemployees,significantlyboostingitsmarketcompetitivenessincompensation.
Duringthereportingperiod,theCompanycompletedtheoptimizationandupgradeofitsperformancemanagementsystemandimprovedthebonuspoolincentivescheme.Theseeffortseffectivelyputintopracticethe“morecreation,moresharing”conceptandensuredfairnessbetweeninputandoutput.Employees’compensationiscloselylinkedtotheirjobresponsibilities,qualifications,andperformance,effectivelystimulatingenthusiasmandcreativity.Thisnotonlyhelpsretainkeyinternaltalentsbutalsoattractshigh-caliberexternalcandidates,promotingthehigh-qualitydevelopmentoftheCompany’stalentteamandachievingmutualgrowthbetweenemployeesandtheenterprise.
Inaddition,theCompanyremainsattentivetoemployees’basiclivingneedsinareassuchashousing,transportation,children’seducation,andhealthcare.Itcontinuestoprovidevariousbenefits,includinghousingandtransportationsubsidies.TheCompanyhasalsoupgradeditsofficebuildingsandemployeecafeteria,furtheroptimizedtheworkingenvironmentandstrivingtoofferamorecomfortableandefficientplatformforworkanddevelopment.(III)Trainingplan
√Applicable?Notapplicable
In2024,thecompanycontinuedtodeepenits“TrainingandPracticalApplicationIntegration”talentdevelopmentstrategy,systematicallyextractingexcellentpracticalcasesandvaluableexperiencesfrombusinessmanagement,andcontinuouslyoptimizingthetrainingcurriculum.Thecompanycollaboratedcloselywithtopglobalconsultingfirmstoinnovativelyestablishapracticalassessmentmechanismforbothmid-termandfinalexams,successfullyachievingthetalentdevelopmentgoalsofmakingimplicitknowledgeexplicitandstandardizingbestpractices.
Intermsofhigh-endtalentdevelopment,thecompanybenchmarkedtheinternationaltop-tierbusinessschoolEMBAcurriculumsystemandsuccessfullycompletedthefirstphaseofthe“ManagerandDepartmentHeadAdvancedTrainingProgram.”Thisprojectsignificantlyenhancedthecorecompetenciesofmiddleandseniormanagersinareassuchasstrategyimplementation,teamleadership,andorganizationaleffectiveness,providingstrongtalentsupportforthecompany’sstrategicimplementation.Forgrassrootsmanagementteamdevelopment,thecompanyadopteda“DualImprovement”approach(improvingtrainingqualityandenhancingmanagerialcompetency),innovativelylaunchingtheDepartmentHeadTrainingProgram,whicheffectivelyaddressedtheshortageofreservetalentforkeypositionslikeworkshopdirectorsandproductionsectionheads,thussupplyinghigh-qualitymanagerialtalenttotheproductionandoperationsystem.
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Intermsofprofessionalandtechnicaltalentdevelopment,thecompanyestablishedasystematicandstandardizedtechnicaltalenttrainingsystemforthefirsttime.Byofferingtechnicaladvancedcourses,thecompanyfocusedonthreekeyareas:“professionalknowledgeaccumulation,problem-solvingability,andcareerdevelopment,”providingcomprehensivetrainingfromjobcompetencytoprofessionaltechnicalability.Thisinitiativeaimstobuildateamofengineerswhoarenotonlyskilledintechnicalexpertisebutalsopossessstrongprofessionalqualities,aligningemployeegrowthwiththecompany’sdevelopmentneeds.In2024,thecompany’stalentdevelopmenteffortsyieldedremarkableresults:12specializedtrainingcourseswereheld,training312individualsinvariousfields;148internallydevelopedcourseswerecreated,and41high-qualityexternalcourseswereintroduced;thetotaltraininghoursforbothonlineandofflinecoursesexceeded1,500hours.Acomprehensive,multi-leveltalentdevelopmentsystemwasestablished,providingstrongtalentsupportforthecompany’ssustainabledevelopment.(IV)Laboroutsourcing
√Applicable?Notapplicable
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Totalmanhoursoflaboroutsourcing
| Totalmanhoursoflaboroutsourcing | 1,922,232 |
| Totalremunerationpaidforlaboroutsourcing(intenthousandyuan) | 75,817,271.63 |
X.PlansforProfitDistributionortheConversionofCapitalReserve(I)Formulation,implementation,oradjustmenttothecashdividendpolicy
√Applicable?Notapplicable
TheArticlesofAssociationhasveryspecificprovisionsonthecashdividendpolicy.
AccordingtotheCompany’sArticlesofAssociation:“TheCompanyshallactivelydistributedividendsincash,inprincipleonanannualbasis.TheBoardofDirectorsmayproposeaninterimcashdividendbasedontheCompany’sprofitabilityandfundingrequirements.ThespecificdistributionplanshallbeformulatedbytheBoardofDirectorsinaccordancewithitsauthority,basedontheCompany’sactualoperationalandfinancialsituation,andsubmittedtotheGeneralMeetingofShareholdersforapproval.BeforetheGeneralMeetingreviewsthecashdividenddistributionplan,theCompanyshallcommunicateandengagewithshareholders—particularlyminorityshareholders—throughvariouschannels,fullyconsideringtheiropinionsanddemands,andrespondinatimelymannertoissuesofconcerntominorityshareholders.”
TheCompany’sprofitdistributionplanconformstotherelevantprovisionsoftheArticlesofAssociation.Inthefuture,theCompanywillcontinuetoincreasereturnstoshareholdersthroughcashdividendsandthecancellationofbuybackscombined.
The2024interimprofitdistributionplanwasdeliberatedandapprovedatthe2024SecondExtraordinaryShareholders’MeetingandwasimplementedonNovember22,2024.Basedonthetotalsharecapitalasoftheequitydistributionrecorddate,excludingthenumberofsharesheldintherepurchaseaccount,atotalof2,837,199,050shareswereusedasthebase.Acashdividendof0.17596
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yuanpershare(inclusiveoftax)wasdistributed,totalingacashdividendof499,233,544.84yuan(inclusiveoftax).The2024annualprofitdistributionplan(preliminaryproposal)wasdeliberatedandapprovedatthe18thmeetingofthe10thBoardofDirectors.Theproposalistodistributeacashdividendof0.4206yuanpershare(inclusiveoftax)basedonthetotalsharecapitalasoftheequitydistributionrecorddate(excludingthenumberofsharesheldintherepurchaseaccount).AsofDecember31,2024,thetotalsharecapitaloftheCompanyis2,852,788,750shares,andbasedonthis,thetotalcashdividendtobedistributedisestimatedat1.2billionyuan(inclusiveoftax).ThisproposalissubjecttoapprovalattheShareholders’Meeting,andtheactualdistributionamountwillbebasedontheequitydistributionimplementationannouncementissuedbytheCompany.Ifthereareanychangesinthetotalsharecapitalbeforetheequitydistributionrecorddate,thetotaldistributionamountwillremainunchanged,andtheper-sharedistributionratiowillbeadjustedaccordingly.(II)Explanationofspecificmattersrelatedtothecashdividendpolicy
√Applicable?Notapplicable
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Diditconformtotheprovisionsofthearticlesofassociationortherequirementsofthegeneralmeeting’sresolution?
| Diditconformtotheprovisionsofthearticlesofassociationortherequirementsofthegeneralmeeting’sresolution? | √Yes?No |
| Werethedistributionstandardandproportionspecifiedandclear? | √Yes?No |
| Weretherelevantdecision-makingproceduresandmechanismcomplete? | √Yes?No |
| Didtheindependentdirectorsperformtheirdutiesandplaytheirdueroles? | √Yes?No |
| Didtheminorityshareholdershaveadequatechancetoexpresstheiropinionsandappeals?Weretheirlegitimaterightsandinterestedprotectedfully? | √Yes?No |
(III)ForthecircumstancewheretheCompanymadeaprofitandtheparentcompany’sprofitdistributabletoshareholderswaspositivebutnocashprofitdistributionplanwasproposedduringtheReportingPeriod,theCompanyshoulddisclosethereasonsaswellastheuseanduseplanoftheretainedprofitindetail.?Applicable√Notapplicable(IV)PlansforprofitdistributionandtheconversionofcapitalreserveduringtheReportingPeriod
√Applicable?Notapplicable
Unit:yuanCurrency:RMB
| Numberofbonussharesper10shares(share) | 0 |
| Amountofdividendsper10shares(yuan) | 5.9656 |
| Numberofsharesforconversionper10shares(share) | 0 |
| Amountofcashdividends(inclusiveoftax) | 1,699,116,493.09 |
| Netprofitdistributabletothecommonshareholdersofthelistedcompanyintheconsolidatedstatementsfortheyearofdividenddistribution | 2,740,427,215.56 |
| Percentageinthenetprofitdistributabletothecommonshareholdersofthelistedcompanyintheconsolidatedstatements(%) | 62.00 |
| Amountofsharebuybacksincashthatareincludedincashdividends | 571,185,981.88 |
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Totaldividends(inclusiveoftax)
| Totaldividends(inclusiveoftax) | 2,270,302,474.97 |
| PercentageoftotalcashdividendsinthenetprofitattributabletothecommonshareholdersoftheCompanyintheconsolidatedstatements(%) | 82.84 |
Note:Thedividendamountper10sharesinthetableaboveincludesthedistributionofthe2024interimprofit,whichhasalreadybeenimplementedandfullydistributed.The2024interimprofitdistributionwas1.7596yuanper10shares.Addingthe2024annualdividendof4.206yuanper10shares,thetotaldividendis5.9656yuanper10shares.(V)Recentcashdividenddistributioninthelastthreeaccountingyears
√Applicable?Notapplicable
Unit:yuanCurrency:RMB
| Cumulativecashdividendamount(taxincluded)inthelastthreeaccountingyears(1) | 4,074,658,208.89 |
| Cumulativerepurchasedandcancelledamountinthelastthreeaccountingyears(2) | 2,247,688,459.63 |
| Cumulativecashdividendandrepurchasecancellationamountinthelastthreeaccountingyears(3)=(1)+(2) | 6,322,346,668.52 |
| Averageannualnetprofitinthelastthreeaccountingyears(4) | 3,442,539,630.99 |
| Cashdividendratiointhelastthreeaccountingyears(%)(5)=(3)/(4) | 183.65 |
| Netprofitattributabletocommonshareholdersofthelistedcompanyinthelatestaccountingyear(Consolidatedfinancialstatements) | 2,740,427,215.56 |
| Unappropriatedprofitattheendofthelatestaccountingyear(Parentcompanyfinancialstatements) | 2,611,601,565.13 |
XI.InformationoftheCompany’sShareIncentivePlan,EmployeeStockOwnershipPlan,orOtherStaffIncentivesandTheirImpact(I)Relevantincentivesthatweredisclosedintheprovisionalannouncementandhadnoprogressorchangeinsubsequentimplementation?Applicable√Notapplicable(II)IncentivesthatwerenotdisclosedintheprovisionalannouncementormadeprogresssubsequentlyShareincentives?Applicable√NotapplicableOtherinformation?Applicable√NotapplicableEmployeestockownershipplan
√Applicable?Notapplicable
1.Employeestockownershipplanfor2021TheCompanyheldthe14thmeetingoftheninthboardofdirectorsandthefirstextraordinarygeneralmeetingof2021onJanuary14,2021,andFebruary1,2021,respectively.Atthemeetings,theProposalontheCompany’sEmployeeStockOwnershipPlan(Draft)for2021anditsSummary,theProposalontheManagementMeasuresfortheCompany’sEmployeeStockOwnershipPlanfor2021,andtheProposalonRequestingFullAuthorizationfromtheAnnualGeneralMeetingfortheBoardofDirectorstoHandleMattersRelatedtotheCompany’sEmployeeStockOwnershipPlanweredeliberatedandapproved.Fordetails,refertotherelevantannouncementspublishedbytheCompanyon
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thewebsiteoftheShanghaiStockExchange(http://www.sse.com.cn)onJanuary15,2021,andFebruary2,2021,respectively.The2021employeestockownershipplanexpiredonFebruary11,2024.BasedonconfidenceintheCompany’ssustainabledevelopmentandthejudgmentofitssharevalue,theextensionoftheplanforanadditional36monthstoFebruary11,2027wasdeliberatedandapprovedatthefirstextraordinarygeneralmeetingof2024.AsoftheendoftheReportingPeriod,therewere21,420,471sharesintheCompany’semployeestockownershipplandesignatedaccount,accountingfor0.75%oftheCompany’scurrenttotalsharecapital(2,852,788,750shares).
2.Employeestockownershipplanfor2022TheCompanyheldthe27thmeetingoftheninthboardofdirectorsandthesecondextraordinarygeneralmeetingof2021onDecember15,2021,andDecember31,2021,respectively.Atthemeetings,theProposalontheCompany’sEmployeeStockOwnershipPlan(Draft)for2022anditsSummary,theProposalontheManagementMeasuresfortheCompany’sEmployeeStockOwnershipPlanfor2022,andtheProposalonRequestingFullAuthorizationfromtheAnnualGeneralMeetingfortheBoardofDirectorstoHandleMattersRelatedtotheCompany’sEmployeeStockOwnershipPlanweredeliberatedandapproved.Fordetails,refertotherelevantannouncementspublishedbytheCompanyonthewebsiteoftheShanghaiStockExchange(http://www.sse.com.cn)onDecember16,2021,andJanuary1,2022,respectively.Asofthedateofthisreport,thetermoftheCompany’s2022employeestockownershipplanhasexpired.AllCompanysharesheldundertheplanhavebeenfullysoldandtheplanhasbeenliquidated.
3.Employeestockownershipplanfor2023TheCompanyheldthe35thmeetingoftheninthboardofdirectorsandthefirstextraordinarygeneralmeetingof2023onDecember21,2022,andJanuary6,2023,respectively.Atthemeetings,theProposalontheCompany’sEmployeeStockOwnershipPlan(Draft)for2023anditsSummary,theProposalontheManagementMeasuresfortheCompany’sEmployeeStockOwnershipPlanfor2023,andtheProposalonRequestingFullAuthorizationfromtheGeneralMeetingfortheBoardofDirectorstoHandleMattersRelatedtotheCompany’sEmployeeStockOwnershipPlanweredeliberatedandapproved.Fordetails,refertotherelevantannouncementspublishedbytheCompanyonthewebsiteoftheShanghaiStockExchange(http://www.sse.com.cn)onDecember22,2022,andJanuary9,2023.
AsofJanuary28,2023,theCompany’sdesignatedaccountforthe2023employeestockownershipplanhadpurchasedatotalof28,260,800sharesofMeihuaBiothroughcentralizedbiddingonthesecondarymarket,withatotaltransactionamountof295,296,438yuanandanaveragetransactionpriceofapproximately10.45yuanpershare.Thenumberofsharespurchasedaccountedfor0.93%oftheCompany’sthentotalsharecapitalof3,042,465,447shares.Inaccordancewiththeplanapprovedatthefirstextraordinarygeneralmeetingof2023,thepurchaseunderthe2023employeestockownershipplanhasbeencompleted.Thepurchasedsharesaresubjecttolock-upandwillbeunlockedintwophasesafter12and24monthsfromthedateoftheannouncement,withthemaximumlock-upperiodbeing24months.Theproportionsofsharestobeunlockedineachphaseare50%and50%,respectively.
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AsofFebruary28,2025,allsharesunderthe2023employeestockownershipplanhadbeenreleasedfromlock-up.TheCompany’sdesignatedaccountforthe2023employeestockownershipplanheld17,076,400shares,accountingfor0.60%oftheCompany’scurrenttotalsharecapitalof2,852,788,750shares.
4.Employeestockownershipplanfor2024
TheCompanyheldthe8thmeetingofthetenthboardofdirectorsandthefirstextraordinarygeneralmeetingof2024onJanuary16andFebruary1,2024,respectively.Atthemeetings,theProposalontheCompany’sEmployeeStockOwnershipPlan(Draft)for2024anditsSummary,theProposalontheManagementMeasuresfortheCompany’sEmployeeStockOwnershipPlanfor2024,andtheProposalonRequestingFullAuthorizationfromtheGeneralMeetingfortheBoardofDirectorstoHandleMattersRelatedtotheCompany’sEmployeeStockOwnershipPlanweredeliberatedandapproved.Fordetails,refertotherelevantannouncementspublishedbytheCompanyonthewebsiteoftheShanghaiStockExchange(http://www.sse.com.cn)onJanuary17andFebruary2,2024.
AsofJune27,2024,theCompany’sdesignatedaccountforthe2024employeestockownershipplanhadpurchasedatotalof18,527,100sharesoftheCompanythroughcentralizedbiddingonthesecondarymarket,withatotaltransactionamountof192,049,194yuan(excludingtransactionfees)andanaveragetransactionpriceofapproximately10.37yuanpershare.Thenumberofsharespurchasedaccountedfor0.65%oftheCompany’scurrenttotalsharecapitalof2,852,788,750shares.Inaccordancewiththeplanapprovedatthefirstextraordinarygeneralmeetingof2024,thepurchaseunderthe2024employeestockownershipplanhasbeencompleted.Thepurchasedsharesaresubjecttolock-upandwillbeunlockedintwophasesafter12and24monthsfromthedateoftheannouncement,withthemaximumlock-upperiodbeing24months.Theproportionsofsharestobeunlockedineachphaseare50%and50%,respectively.
Asofthedateofthisreport,thesharesunderthe2024employeestockownershipplanremainsubjecttolock-up.Otherincentives?Applicable√Notapplicable(III)InformationofshareincentivesgrantedtodirectorsandofficersduringtheReportingPeriod?Applicable√Notapplicable(IV)AppraisalmechanismforofficersduringtheReportingPeriod,aswellastheestablishmentandimplementationoftheincentivemechanism
√Applicable?Notapplicable
TheCompanyhasestablishedacomprehensiveperformancemanagementsystemcenteredonthecoreconceptsof“all-employeeparticipation,valuecreationandsharing,”and“financialresultsastheultimatecriterionforevaluatingmanagement.”Aseniormanagementannualcompensationsystem,integratingjobgrade-basedsalarieswithperformanceevaluations,hasalsobeenputinplace.Thissystemisstructuredaroundtheprincipleofincentivetimingandisdividedintothreedimensions:Short-termincentivesareimplementedonamonthlybasis,includingbasesalaryandmonthlyperformancebonuses.Mid-termincentivesarecarriedoutquarterly,coveringassessmentsbasedonquarterly
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performanceindicators.Long-termincentivesaregrantedonanannualcycleandincludeannualperformanceevaluations,equity-basedincentives,employeestockownershipplan(ESOP)awards,andspecialincentivebonuses.Throughaprogressive,multi-levelincentivestructure,theCompanyfostersavirtuouscycleofvaluecreationandbenefitsharing.
TheCompany’sBoardofDirectorshasestablishedaRemunerationandAppraisalCommittee,whichisresponsibleforformulatingandsupervisingtheimplementationofcompensationandperformanceassessmentschemesforseniormanagement.TheCommitteedevelopscompensationandappraisalplansbasedontheCompany’sannualbusinessobjectivesassetbytheBoard,organizestheannualperformanceevaluationsofseniorexecutives,andmonitorstheexecutionoftheseplans.ProposalsmadebytheCommitteemustbereviewedandapprovedbytheBoardbeforeimplementation.Theevaluationmechanismadherestotheprincipleofmatchingresponsibilitiesandrewards,ensuringthatindividualcompensationcorrespondstothevalueandresponsibilitiesoftheposition.SeniormanagementremunerationisdirectlylinkedtoCompanyperformanceandpersonalobjectivestodrivecontinuousbusinessgrowth,discourageshort-termbehaviors,andpromotetheCompany’slong-termsustainability.
Since2017,theCompanyhaslaunchedsixphasesofemployeestockownershipplansandonerestrictedstockincentiveschemespecificallyforseniormanagement.Theseincentiveplansincorporatechallengingcorporateandindividualperformancetargets,tightlyintegratingCompanydevelopmentwithpersonalgrowth.Thesystemhasnotonlyeffectivelymotivatedkeypersonnelandstimulatedinnovation,butalsoestablishedastronglinkagebetweenperformanceresultsandincentiverealization.Thislong-termmechanismhasbecomeasustaineddrivingforcebehindtheCompany’ssteadygrowthincorefinancialmetricssuchasoperatingrevenueandnetprofit,enablingdeepsynergybetweenstrategicgoalsandtalentvalueenhancement.XII.DevelopmentandImplementationofInternalControlPoliciesduringtheReportingPeriod
√Applicable?Notapplicable
In2024,inaccordancewiththemanagementrequirementsoftheBasicSpecificationsforInternalControlofEnterprisesandtheCompany’sManagementPolicyforInternalControlandbasedontheCompany’sannualbusinesstargetsandactualdevelopmentneeds,theCompanyconductedinternalcontroltestsandevaluationsforfundactivities,thecirculationofpurchasesandpayment,inventorymanagement,costingandcontrol,thecirculationofsalesandpaymentcollection,engineeringprojectmanagement,assetmanagement,comprehensivebudgetmanagement,humanresourcemanagement,andfinancialreporting.
DuringtheReportingPeriod,basedonitsoperationalcharacteristics,theCompanykeptdevelopingandimprovinginternalcontrolpoliciesandeffectivelyimplementedthem.ThepoliciesfittheCompany’sexistingmanagementrequirementsanddevelopmentneedsandcouldprovideabeneficialguaranteeforthesoundoperationsofitsbusinessandthecontrolofitsoperationalrisk.Overall,theCompany’sinternalcontrolwascomplete,reasonable,andeffectivewithoutanymajordefects.Itplayed
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amanagerialandcontrollingroleinalltheCompany’soperationsmanagementprocessesandkeylinks,thusensuringthelong-termandstabledevelopmentoftheCompany.ExplanationofmajordefectsininternalcontrolduringtheReportingPeriod?Applicable√NotapplicableXIII.ManagementandControlofSubsidiariesduringtheReportingPeriod
√Applicable?Notapplicable
InaccordancewiththerequirementsoftheManagementPolicyforinternalcontrol,theCompanyhassetupanauditcommitteeundertheboardofdirectorsasaleadingbodytoinspectandsupervisetheimplementationoftheCompany’sinternalcontrolpolicies.TheCompanyhasanauditdepartmenttoinspectandsupervisetheimplementationoftheCompany’sinternalcontrolpoliciesundertheguidanceoftheauditcommittee.ImportantsubsidiariesoftheCompanyincludeTongliaoMeihuaBiotechCo.,Ltd.,XinjiangMeihuaAminoAcidCo.,Ltd.,andJilinMeihuaAminoAcidCo.,Ltd.,amongothers.TheCompany’sdepartmentsguide,supervise,andsupportthecorrespondingdepartmentsofitssubsidiariesandcontrolriskthroughthestandardoperation,humanresourcemanagement,financialmanagement,internalaudit,informationdisclosure,investmentandfinancingmanagement,andoperationalappraisalofitssubsidiaries.TheCompanyimprovestheoveralloperationefficiencyandanti-riskcapabilitiesandensuresthesecurity,preservation,andappreciationofassetsaccordingtoitsoveralldevelopmentstrategyandplanning.
EachsubsidiarystrictlyfollowsthemanagementregulationsandbusinessprocessesissuedbytheCompany.InalignmentwiththeCompany’soveralldevelopmentstrategyandannualoperationalgoals,thesubsidiariesdeveloptieredbusinessimplementationplansandcorrespondingriskmanagementsystemstoeffectivelyintegratestrategyexecutionwithriskpreventionandcontrol.XIV.ExplanationofRelevantInformationabouttheInternalControlAuditReport
√Applicable?Notapplicable
TheCompanyhasengagedZandar(Shenzhen)CPAsLLP(SpecialGeneralPartnership)(formerlyknownasDaHuaCPAsLLP(SpecialGeneralPartnership))toaudittheinternalcontrolsituationoftheCompanyduringthereportingperiod.Theinternalcontrolauditreport(DocumentNo.:ZDZYNZNo.2500001)wasissued,whichconcludedthat,asofDecember31,2024,theCompanymaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialrespects,inaccordancewiththeBasicNormsforEnterpriseInternalControlandrelatedregulations.
Whethertheinternalcontrolauditreportisdisclosed:YesTypeofopinionoftheinternalcontrolauditreport:StandardUnqualifiedXV.RectificationofSelf-identifiedProblemsinSpecialActionfortheGovernanceofListedCompany
InaccordancewiththerequirementsoftheNoticeonSpecialActionsfortheGovernanceofListedCompanies(ZZJF[2020]No.230),theCompanyconductedaself-assessmentontheimplementationofitsArticlesofAssociation,theperformanceofdutiesbytheshareholders’meeting,boardofdirectors,
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andsupervisoryboard,informationdisclosuremanagement,sealmanagement,contractexecution,majorinvestmentmanagement,independenceandfairnessofrelatedpartytransactions,externalguarantees,fundoccupation,andotherbusinessareas.Theissuesidentifiedduringtheself-inspectionhavebeenrectified.XVI.Miscellaneous?Applicable√Notapplicable
Section5EnvironmentalandSocialResponsibility
I.EnvironmentalInformation
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Whetherthereisanenvironmentalprotection-relatedmechanism
| Whetherthereisanenvironmentalprotection-relatedmechanism | Yes |
| SpendingonenvironmentalprotectionduringtheReportingPeriod(unit:‘0000yuan) | 6,851 |
(I)InformationontheenvironmentalprotectionoftheCompanyanditskeysubsidiariesiftheCompanyisclassifiedasakeypollutantdischargeentitybytheenvironmentalauthorities
√Applicable?Notapplicable
1.Informationofpollutantdischarge
√Applicable?NotapplicableThethreekeysubsidiariesunderMeihuaGroupareclassifiedaskeypollutantdischargeentitiesbytheenvironmentalauthorities.Thepollutantsdischargedmainlyincludewastewaterandwastegas.Thekeymonitoringindicatorsforwastegasarefume,SO
andNOx,andthoseforwastewaterareCODandammonianitrogen.
TongliaoCompanyhassixdetectionportsforwastegasemissionsandtwodetectionportsforwastewaterdischarge.Theactualconcentrationofparticulatematterinthefluegasattheheatingstationiscontrolledbelow30mg/m?,theSO
emissionconcentrationiscontrolledtobelow200mg/m?,andtheNOxemissionconcentrationiscontrolledtobelow200mg/m?.Theactualconcentrationofsulfurdioxideinthewastegasfromsulfuricacidproductioniscontrolledtobelow400mg/m?,whiletheactualconcentrationofsulfurdioxideinthewastegasfromammoniasynthesisrecoveryiscontrolledtobelow100mg/m?.TheCODconcentrationinthewastewateriscontrolledtobelow500mg/L.
XinjiangCompanyhastwodetectionportsforwastegasemissionsandonedetectionportforwastewaterdischarge.Forwastegas,theactualemissionconcentrationforfumeiscontrolledbelow10mg/m?,thatforSO
iscontrolledbelow35mg/m?,andthatforNOxiscontrolledbelow50mg/m?.Forwastewater,theemissionconcentrationforCODiscontrolledbelow300mg/L,andthatforammonianitrogeniscontrolledbelow35mg/L.
JilinCompanyhasfourdetectionportsforwastegasemissionsandonedetectionportforwastewaterdischarge.Forwastegas,theactualemissionconcentrationforfumeiscontrolledbelow30mg/m?,thatforSO
iscontrolledbelow100mg/m?,andthatforNOxiscontrolledbelow100mg/m?.Forwastewater,theemissionconcentrationforCODiscontrolledbelow30mg/L,andthatforammonia
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nitrogeniscontrolledbelow35mg/L.
DuringtheReportingPeriod,theverifiedtotaldischargeofTongliaoCompany,XinjiangCompany,andJilinCompanydidnotexceedthepermittedtotaldischarge,andthepollutantdischargeconcentrationsatalldischargeoutletsarewithinthenationallimits.
2.Constructionandoperationofpollutionpreventioncontrolfacilities
√Applicable?Notapplicable
(1)Wastewatertreatment
Duringtheproductionofaminoacidsbyfermentation,TongliaoCompanygenerateshigh-concentrationorganicwastewater.Thiswastewaterhasahighorganicmattercontent,makingbiologicaltreatmentchallenging.Tothoroughlytreatthehigh-concentrationorganicwastewaterproducedduringtheproductionprocess,thecompanyinvested250.41millionyuaninbuildingthemicrobialproteinworkshopandorganicfertilizerworkshopinphases.Throughflocculationandflotationofthehigh-concentrationorganicwastewatertoextractfeedmicrobialprotein,followedbyevaporationconcentrationandspraygranulationoftheprotein-extractedliquidtoproduceorganicfertilizer,thecompanyhasbeenrecognizedasaresourcerecyclingproductbytheAutonomousRegionEconomicCommissionandreceivedacirculareconomyprojectreward,enablingwasterecycling.Totreatlow-concentrationwastewater,thecompanyreducestheextractionoffreshwaterthroughinternalrecyclingandinter-workshopcoordinationinthewastewatertreatmentworkshop.Additionally,thecompanyinitiallyinvestedover26millionyuaninbuildingananaerobic+aerobicUASBwastewatertreatmentsystem.In2009,thecompanyfurtherinvestedover100millionyuantoupgradethetechnologybyintroducingtheICreactorandANAMMOXbiologicalnitrogenremovalprocessfromtheDutchcompanyParkEnvironmental.Thistechnologyiscurrentlythemostadvancedwastewatertreatmenttechnologyintheworld.Currently,TongliaoCompanyoperatestwoworkshopsusingICanaerobic+aerationaerobic+ANAMMOXbiologicalnitrogenremovalprocesses,withanannualtreatmentcapacityof34,150tonsperday.Thetreatedwaterqualityisfarbelowtherequiredstandards.Tosavepreciousgroundwaterresourcesandreducewastewaterdischarge,thecompanyinvested150millionyuantobuildtworeclaimedwaterworkshops,withadailyproductionof13,000cubicmetersofreclaimedwater.Thisreclaimedwaterisusedforthepowerplant’sboilersandcoolingwaterforproductioncycles,reducingwaterusageandalsodecreasingthetotalamountofwastewaterdischarge.In2024,tosupportthenewmonosodiumglutamateproject,thecompanyexpandedtheexistingWestDistrictwastewatertreatmentplant,addinga10,000cubicmetersperdaywastewatertreatmentsystem.Afterthisexpansion,thecompany’swastewatertreatmentcapacityincreasedto44,150cubicmetersperday.Theexpandedsystemwillusetheanaerobic+aerobic+Anammoxnitrogenremovaltreatmentprocess,includingtheconstructionofnewICoperatingrooms,sludgeremovalrooms,phosphorusremovalworkshops,pre-acidificationtanks,ICXinlettanks,ICXanaerobicreactors,aerationtanks,secondarysedimentationtanks,ANAMMOXreactors,accidentponds,andanaerobicsedimentation/sludgeconcentrationtanks.
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Likewise,XinjiangCompanyhasadoptedacombinationoftieredutilizationandrecyclingtoreducewaterconsumption.Thehigh-concentrationwastewatergeneratedbythecompanyisrichinnitrogen,phosphorus,potassium,andorganicmatter.Throughgranulationprocesses,itisconvertedintoorganicfertilizeranddistributedtocornfarmersinexchangeforgrain,formingavirtuouscycleinwhichtheorganic,high-efficiencyfertilizerisreusedincorncultivation.Thecompany’swastewatertreatmentplanthasatotalinvestmentof500millionyuan,withannualoperatingcostsexceeding17millionyuan.ItcontinuestousethemostadvancedwastewatertreatmenttechnologydevelopedbytheDutchcompanyPaques—namelytheICinternalcirculationanaerobicreactor,ANAMMOXbiologicalnitrogenremoval,andA/Oprocess—togetherwithautomatedcontrolsystems.Thisplacesthecompany’swastewatertreatmenttechnologyamongthebestinChina,withpollutantdischargesfarbelownationalstandards.Whilemeetingenvironmentalrequirements,XinjiangCompanyhasalsobecometheworld’slargestsupplierofANAMMOXsludge,whichissoldbothdomesticallyandinternationally.Inaddition,biogasgeneratedthroughICreactorsisusedtosupplycleanenergytotheproductionworkshops,reducingcoalconsumptionbymorethan10,000tonsannually.Tofurtherimprovewaterconservation,XinjiangCompanyinvested35millionyuaninareclaimedwaterreuseprojectwithadailycapacityof15,000m?.UsingV-shapedfilters,ultrafiltration,andreverseosmosistechnologies,thefacilitysavesapproximately10,000m?offreshwaterperday.
JilinCompanyinvestednearly120millionyuaninitswastewatertreatmentworkshop,whichappliesafive-stagebiologicaltreatmentprocessconsistingofanaerobicandaerobicreactions,ANAMMOXnitrogenremoval,A/Oprocess,andcoagulation-sedimentation.Theanaerobicreactorutilizesthelatestthird-generationICXreactordevelopedbyPaques,whichoffers20%higherefficiencycomparedtootherreactors.Thedesignedtreatmentcapacityis30,000m?/day.TofullyembodyMeihuaGroup’svisionofbuildingan“environmentallyfriendly,resource-efficient,technologicallyinnovative,andquality-safe”enterprise,JilinCompanyhascontinuouslypromotedenergy-saving,emissionreduction,andcleanproductioninitiatives.Ithasproactivelyexploredinnovativetechnologiesandidentifiedopportunitiesforprocessoptimization,enablingbothenvironmentalprotectionandcost-effectiveoperations.In2024,thecompanyachievedadailydischargereductionofapproximately2,000m?,withitscleanproductionstandardsreachinginternationallyadvancedlevels.
ThewastewatertreatmentworkshopsofTongliaoCompany,XinjiangCompany,andJilinCompanyallhaveonlinesurveillanceequipmentfortheirdischargeoutlets,whichisconnectedwiththenetworksofenvironmentalauthoritiestomonitortheCompany’swastewaterdischargeinrealtime.Additionally,regularthird-partytestingisconducted,withresultsconfirmingthatallthreesubsidiariesmeettherequireddischargestandardsforallpollutants.
(2)Wastegastreatment
1Treatmentoffumefromboilers:
TheCompanyemploysanintegratedfluegastreatmentprocesscombiningelectrostatic-baghybrid
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dustremoval(baghousedustcollector),SNCRandPSCRdenitrification,ammonia-baseddesulfurization,andultrasonicdesulfurization-dustremoval.Aftertreatment,theconcentrationoffluegasemissionsissignificantlylowerthanthelimitssetintheEmissionStandardsofAirPollutantsforThermalPowerPlants,achievingthe“ultra-low-emission”standard.ThedenitrificationprocessreducesnitrogenoxidesintoN?andH?O,withoutproducingsecondarypollution.Theammonia-baseddesulfurizationtechnologyreliesonthereactionbetweenNH?andSO?.Inamultifunctionalfluegasdesulfurizationabsorptiontower,ammoniaabsorbsSO?fromthefluegasandoxidizesitintoammoniumsulfate.Theresultingby-productcanbeusedintheproductionoftheCompany’saminoacidproducts,thusmeetingemissionstandardswhilealsopromotingresourcerecycling—adualbenefit.In2024,XinjiangCompanyinvested1.54millionyuantoupgradeitsonlinemonitoringfacilities.Theupgradeenhancedreal-timesupervisionanddataapplicationcapabilitiestocomplywiththeNoticeonFurtherStrengtheningtheManagementofAutomaticMonitoringFacilitiesforKeyUnitsintheXPCC(BingHuanHan[2024]No.28)andtheTechnicalSpecificationforContinuousMonitoringofFlueGasEmissionsfromStationaryPollutionSources(HJ75-2017).Followingtheupgrade,allfluegasmonitoringequipmenthasbeenequippedwith“dynamic”managementfunctions.
ThefluegasoutletsofTongliao,Xinjiang,andJilinCompaniesareallequippedwithonlinemonitoringsystems,whichareconnectedtothenetworksofenvironmentalauthoritiesforreal-timesupervision.Emissionindicatorsfromallthreesubsidiariesmeettherequirementsforultra-lowemissions.
2Treatmentoforganizedodors:
Intreatingorganizedodoremissions,theCompanyusesacombinationofadvancedtreatmenttechnologies,includingdedusting,washing,coolinganddewatering,catalyticoxidation,cryo-condensation,DDBD(doubledielectricbarrierdischarge),photo-electrocatalysis,andactivatedcarbonadsorption,andbiologicaldeodorization.Allodorsaredischargedthroughthreetoninetiersoftreatment.In2024,TongliaoCompanyinvested3.4millionyuantointroducebiologicaldeodorizationdevicesforthetreatmentofnucleotideresiduedryingexhaustgases,continuouslyexploringandapplyinginnovativenewprocesstechnologiesforongoingodorcontrolimprovements.In2024,XinjiangCompanyinvested3millionyuanindeeptreatmentofwastewaterodors.Onthebasisofexistingodorcontrolfacilities,theCompanyconstructedadditionalfacilities,includingwashingtowersandbiologicaldeodorizationsystems,strivingtomeettherequirementsoftheOdorPollutantEmissionStandards(DraftforComment)beforenationalenvironmentalregulationsareimplemented.Atthesametime,theCompanycontinuestoinnovateinodortreatmentprocessesforfermentationsmellsandproductdryingexhaustgases.Ithasadoptedacombinationofadvanceddomesticandinternationaltechniques,suchasmulti-stagewashing,coolinganddewatering,electrostaticmistremoval,low-temperatureplasma,deepoxidation,activatedcarbonadsorption,andbiologicaldeodorization.Automationcontrolhasbeenimplementedtoensuremorepreciseandstableoperationalcontrol.
③Treatmentofunorganizedodors:
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Intreatingunorganizedodoremissions,theCompanyhasinstalledclosedcollectiondevicestotreatunorganizedwastegasfromproductionequipmentandstoragetanksandequipment.Thecollectedwastegasisdischargedafterbeingtreatedbyenvironmentaldevices,whichsolvestheimpactofunorganizedwastegasemissionsonambientairquality.Further,throughthecontinuousimprovementofitsinternalmanagement,theCompanystrivestoeliminatethelocationsofunorganizeddiffusionandreduceindoorandoutdoorodorconcentrations.
④Treatmentofunorganizeddust:
TheCompanyspenthundredsofmillionsofyuantoreducetheunorganizeddustproducedfromthestorageandtransportationofcoalbybuildingfourcompletelyclosedcoalyards.Theyardsareequippedwithhigh-pressurefogejectorsthatejectfogintotheyardstopreventdust.Intheplants,coalsaretransportedinafullyclosedway.Thecardumpersystemhasdryfog-baseddustpreventiondevicestoautomaticallyejectfogwhenunloadingcoals.Thetransportationandstorageofcoalthoroughlyeliminatetheimpactofunorganizeddust.
3.Environmentalimpactassessmentforconstructionprojectsandotheradministrativelicensingforenvironmentalprotection
√Applicable?Notapplicable
①TongliaoMeihua
In2024,TongliaoMeihuaobtainedtheenvironmentalimpactassessment(EIA)approvalforthe500,000tons/yearmonosodiumglutamateandsupportingprojects,aswellastheheatingboilerenergy-savingtechnologyrenovationproject.Additionally,thecompletionofthe250,000tons/yearthreonineandsupportingprojects,alongwiththerawmaterialammoniaplanttechnicalupgradeproject,passedtheself-assessmentofenvironmentalprotection.
②XinjiangMeihua
TheoverallprojectofXinjiangCompanyhascompletedtheenvironmentalimpactassessmentandacceptance.In2024,itreceivedapprovalfortheenvironmentalimpactreportsoftheisoleucinetechnicalupgradeproject,thexanthangumexpansionproject,andtheactivatedcarbonregenerationproject.
③JilinMeihua
TheoverallprojectoftheJilinCompanyhascompletedtheenvironmentalimpactassessmentandacceptance.In2024,itobtainedapprovalfortheenvironmentalimpactreportofthe600,000-tonlysineandsupportingfacilitiesproject.
TongliaoCompany,XinjiangCompany,andJilinCompanyhaveobtainedthepollutantdischargelicenseaccordingtothenationalregulationsontheissueofthepollutantdischargelicense.
4.Environmentalemergencyresponseplan
√Applicable?Notapplicable
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TheCompanycomplieswiththerequirementsoftheEmergencyResponseLawofthePeople’sRepublicofChina,theNationalEnvironmentalEmergencyResponsePlan,theEnvironmentalProtectionLawofthePeople’sRepublicofChina,theWaterPollutionPreventionandControlLawofthePeople’sRepublicofChina,andtheAirPollutionPreventionandControlLawofthePeople’sRepublicofChinatopreventandactivelyrespondtopotentialenvironmentalemergencies,handlesuchemergenciesinarapid,affective,andorderlymanner,andmaintainthenormalworkorderoftheCompany.Inaccordancewiththelatestnationallawsandregulationsaswellasrelevantrequirements,theCompanyobservestheprincipleof“prioritizingpreventionandself-rescue,unifyingcommandandcoordination,implementingaccountability,andcombiningcorporateself-rescueandsocialrescue”basedonitsactualsituationinabidtoavoidandminimizetheimpactofemergenciesonpersonnel,equipment,property,andinparticular,theenvironment.TheCompanystrivestoimproveitscapabilitiesforpreventingenvironmentalaccidents,emergencyresponses,andaftermathhandling.TongliaoCompany,XinjiangCompany,andJilinCompanyhavealldevelopedemergencyrescueplansforenvironmentalpollutionaccidents,filedthemwiththelocalenvironmentalauthorities,andorganizedemergencydrillsaccordingtotherequirements.
5.Environmentalself-monitoringplan
√Applicable?Notapplicable
TongliaoCompany,XinjiangCompany,andJilinCompanyhavedevelopedself-testplansinaccordancewiththeMeasuresonSelf-MonitoringandInformationDisclosureforState-MonitoredKeyEnterprises(Trial)andtheManagementMeasuresforPollutantDischargeLicensingtoregularlytestthewastewaterandwastegasinthefactories.Forwastewater,theyusetheonlineCODcranalyzerandtheonlineammonianitrogenanalyzertoperformcontinuousautomatictests.ThemonitoreditemsarepHvalue,COD,andammonianitrogen,andtheflowmonitoringfrequencyisonceeverytwohours.Forwastegas,theyhaveinstalledonlinetestersonthedesulfurizeroutletstoautomaticallytestfumes,SO
,andNOx.AlltheautomaticmonitoringequipmentusedbytheCompanyhaspassedinspectionbytheenvironmentalauthorities.Inaddition,theCompanystrengthensthemanagementofequipmentoperationandmaintenancetoensureitsnormaloperationsandnormaldatatransmission.TheCompanyalsoappointsqualifiedmonitoringentitiestomonitorrelevantindicators,includingfumes,wastewater,andboundarynoise,toensurethetruthfulnessandeffectivenessoftheirvalues.Atthesametime,theCompanyhasdevelopedemergencyenvironmentalmonitoringplanstoimmediatelymonitorenvironmentalpollutionaccidentsandcooperatewithlocalenvironmentalmonitoringagenciesinemergencymonitoring.
6.AdministrativepunishmentsduetoenvironmentalproblemsduringtheReportingPeriod?Applicable√Notapplicable
7.Otherenvironmentalinformationthatshouldbedisclosed
√Applicable?Notapplicable
TheCompanycalculatesanddulypaystheenvironmentalprotectiontaxinfullaccordingtorelevantlaws,includingtheEnvironmentalProtectionTaxLaw.
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TheCompanyhasbuiltacarbonemissionmanagementsystemtoincorporatecarbonemissionsintoitsdailymanagement.TheCompanymonitorscarbonemissionsregularly,capturesthedataaccordingtothestandards,cooperatesinthird-partyinspections,dulyperformstheprotocol,andclearstheemissionquota.Upholdingtheprincipleof“combiningself-auditswithassistedexternalaudits,”theCompanyengagesathird-partyconsultinginstitutiontoassistintheauditofcleanproduction,surveytheCompany’sproduction,energyconsumption,andemissionreductionduringrecentyears,preparetheCleanProductionAuditReport,andfileitwiththelocalenvironmentalauthority.(II)EnvironmentalinformationoftheCompanyotherthantheinformationasakeypollutantdischargeentity
√Applicable?Notapplicable
1.Administrativepunishmentsforenvironmentalproblems?Applicable√Notapplicable
2.Disclosureofotherenvironmentalinformationbyreferencetothestandardsforkeypollutantdischargeentities?Applicable√Notapplicable
3.Reasonsfornotdisclosingotherenvironmentalinformation
√Applicable?Notapplicable
ExceptforTongliaoMeihua,XinjiangMeihua,andJilinMeihua,otherwholly-ownedsubsidiariesoftheCompanyarenotkeypollutantdischargeentitiesasclassifiedbytheenvironmentalauthorities.ThesesubsidiariesincludeLangfangMeihuaCondimentsCo.,Ltd.andTongliaoMeihuaCondimentsCo.,Ltd.,whichareengagedinthepackagingandsalesofcondiments;LhasaMeihua,whichisengagedinexternalinvestment;HongKongMeihua,atradingcompanyresponsibleforexportingtheCompany’sproducts;andMeihua(Shanghai)BiotechCo.,Ltd.,whichfocusesontechnologydevelopment.Thesesubsidiariesarenotinvolvedinthedischargeormonitoringofmajorpollutants.(III)Informationfavorabletoecologicalconservation,pollutioncontrol,andthefulfillmentofenvironmentalresponsibility
√Applicable?Notapplicable
TheCompanyalwaysprioritizesmanagementandinvestmentinenvironmentalprotection,andadherestotheprincipleofpromotingbotheconomicgrowthandenvironmentalimprovementbyfocusingonenergyconservation,emissionreduction,andgreenmanufacturing.Inthecontextofadvancingcarbonneutralityduringthe“14thFive-Year”Planperiod,andinresponsetonationalpoliciesaimedatreducingenergyconsumptionandcarbonemissions,theCompanyestablishedanEnergyConservationandEmissionReductionCommittee.Comprisingchiefengineersofproducts,equipment,processes,andenvironmentalprotection,thecommitteeisresponsibleforstudyingthedual-controlpolicyontotalenergyconsumptionandenergyintensity,optimizinginternalprocessroadmapsacrossproductionlines,andseizingstrategicopportunitiesarisingfromnationalindustrialrestructuring.TheCompanycontinuestomovetowardgreen,bio-based,andintelligentmanufacturing
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(IV)MeasurestakentoreducecarbonemissionsduringtheReportingPeriodandtheeffects
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Carbonreductionmeasuresinplaceornot
| Carbonreductionmeasuresinplaceornot | Yes |
| CO2emissionsreduced(unit:ton) | 654,000 |
| Keymeasures(suchasusingcleanenergyforpowergeneration,usingcarbonreductiontechnologyduringproduction,anddevelopingnewproductsthathelpreducecarbonemissions | TheCompanyupgradedenergysupply,equipment,andprocessmanagement,suchasreclaimedwaterutilization,secondarycondensatereuse,andboilerrenovationattheheatingstation. |
Specificinformation
√Applicable?Notapplicable
In2021,theCompanyestablishedanEnergyConservationandEmissionReductionCommittee,underwhichanEnergyConservationandEmissionReductionOfficewassetuptocarryoutspecifictasks.TheOfficeorganizesexchangesandlearningamongtheofficesatvariousproductionbases,promotingthesharingofefficientenergy-savingandemission-reductionpracticesandtechnicalupgrademeasures.Inthepasttwoyears,TongliaoMeihua,JilinMeihua,andXinjiangMeihuahavebeensuccessivelyrecognizedasleadingenterprisesinenergyconservationandenvironmentalprotectionbyindustryassociations.
Duringthereportingperiod,inordertofurtherreducecarbonemissions,theCompany’sbasesimplementedenergy-savingandemission-reductionmeasuresfrommultipleaspects,includingproductionprocessmanagement,heatingstationupgrades,andphotovoltaicpowergeneration,achievingdiversificationintechnology,systematizationinmanagement,andlow-carbondevelopment.Effortshavealsobeenmadeinenergysupply(powerplants),energyusage(workshops),greenfinance,andcarbonsinks,resultinginremarkableachievements.
Somecasesofenergyconservationandemissionreductionareasfollows:
1.Projectoftechnologicalimprovementsforenergysupply
(1)ReclaimedWaterOutputExpansionProject:TongliaoCompanyinvestedRMB4.98millioninthesecondWaterTreatmentWorkshoptoupgradetheexistingreclaimedwatertreatmentsystem.Theupgradesincludedtheadditionofa36m?sandfiltertank,anewUFmembraneunit,andanewROmembraneunit,increasingthereclaimedwateroutputfrom4,100m?/dayto8,000m?/dayandreducingdailywaterintakeanddischargebyapproximately3,500m?.Additionally,thethirdWaterTreatmentWorkshopinvestedRMB1.2435milliontoadda1,500m?AMXreactortoreducetotalnitrogen,replacingtheoriginalA/Oandsecondarysedimentationtanks,therebyrestoringthefunctionofthetertiarysedimentationtank.TheA/OtankwasconvertedintoanaerobictanktoaddressthecurrentOEEshortfallandhandlegraywaterfromsyntheticammonia,allowingtheplanttoaccept800m?/dayofadditionalproductionwastewaterandreserveanaerobiccapacityforabnormalconditions.Thetertiarysedimentationtanknowpre-treatsreclaimedwater,reducingturbidityfrom15NTUtobelow5NTUandincreasingoutputby1,000m?/day.
(2)WaterResourceReuse:Thechemicalwaterworkshopreceivesprimary,secondary,andtertiary
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condensatefromproductionlinesincludingxanthangumandsyntheticammonia.Previously,substandardwatercouldnotberecoveredandwasdischargedviatheneutralizationtank,withanaveragedailydischargeof1,514tons.In2024,aprojectwaslaunchedtoredirectthiswaterbacktotherawwatertankinthechemicalwaterworkshopforreuse,reducingtheburdenonthedischargesystemandcuttingdownonexternalwastewaterdischarge.
(3)HeatingStationBoilerUpgradeProject:Thesixexisting130t/hcirculatingfluidizedbedboilersinthesecondworkshopoftheTongliaoCompanyheatingstationwerereplacedwiththreehigher-efficiency350t/hcirculatingfluidizedbedboilers.
(4)Anejectorwasinstalledatthesteamturbineinletofthethirdammoniasynthesislinetoutilize
2.6MPamedium-pressuresteamgeneratedfromtheEndofurnacewasteheatboilerasthemotivesteamsource.Thisincreasedthesteampressuresuppliedtotheairseparationturbineto0.6MPa,allowingtheoverallsteampipelinepressuretobereducedfrom0.55MPato0.50MPa.Asaresult,thesteamconsumptionoftheback-pressuregeneratoratHeatingStationNo.4decreasedfrom7.2kg/kWhto7.05kg/kWh.
(5)XinjiangCompanySteamDistributionHeaderUpgrade:Thepowerplantsuppliessteamat0.55MPaand230°C,butthesteamusageatHeaderNo.8waslow,leadingtoslowflowandhighheatloss.Althoughthepressureremainedhigh,thetemperaturedroppedto150–160°C,resultinginhighmoisturecontent.AnewDN300pipelinewasaddedtodirectsteamtothenucleotidesynthesisevaporator,increasingflowspeed,improvingtemperature,andreducingmoisture.Afterthemodification,theheadertemperatureincreasedfrom160°Ctoover195°C,savinganequivalentof4.8t/h.
(6)XinjiangCompanyExternalPowerProject:AninvestmentofRMB38.35millionwasmadetointroduce110kVexternalelectricitysupply,savingapproximately90,000tonsofcoalannually.
2.EnergyConservationandEmissionReductionTechnologicalRenovationPlanfor2025:
(1)In2025,TongliaoCompanyplanstoinvestRMB2.3milliontoupgradetherotorsoftwocompressorunitsintheairsupplysectionoftheTurbineWorkshopNo.3attheheatingstation.Aftertheupgrade,theminimumairvolumewillbereducedfrom5,170Nm?/minto4,530Nm?/min,whiletheoriginaldesignmaximumairvolumewillremainunchanged,meetingproductionrequirementswithouttheneedforventing.Theoreticalcalculationsindicatepotentialenergysavingsof1,610kWh.
(2)ThenewboilertobebuiltattheJilinbasein2025willbeconstructedinaccordancewithultra-lowemissionstandards.II.SocialResponsibility-RelatedWork
(1)Whetherthesocialresponsibilityreport,thesustainabledevelopmentreport,ortheESGreportwasdisclosedseparately
√Applicable?Notapplicable
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TheCompany’senvironmental,social,andgovernancereportsweredisclosedonthewebsiteoftheShanghaiStockExchangeonthesamedayasthisreport.Thedisclosurewebsiteishttp://www.sse.com.cn.
(2)Informationofsocialresponsibility-relatedwork
√Applicable?Notapplicable
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Externaldonationsandcharityprojects
| Externaldonationsandcharityprojects | Amount/content | Remark |
| Totalspending(‘0000yuan) | 245.875 | |
| including:funds(‘0000yuan) | 235.475 | |
| valueofsupplies(‘0000yuan) | 10.4 | |
| Numberofbeneficiaries | 102,876 |
Specificinformation
√Applicable?Notapplicable
Duringthereportingperiod,theTibetMeihuaCharityFoundationfulfilleditssocialresponsibilitiesthroughdiverseinitiatives.ItdonatedRMB100,000totheindustrialparkinBaicheng,Jilin,tosupportinfrastructuredevelopment;RMB920,000totheShanghaiChunheYouthDevelopmentCenter’sresearch-basedlearningprogramtohelpstudentsinBaichengandruralchildreninGuizhoucultivateinnovativethinkinganddiscoveramoreindependent,open,andconfidentself;andRMB39,700totheBlueEnvelopepenpalvolunteerprogramtoprovidelong-termemotionalsupportandcarefor110ruralchildreninGuizhou.Inaddition,theFoundationdonatedRMB30,000tothe4thCompanyoftheSixthDivisionofXinjiangProductionandConstructionCorpstosupportagriculturalproductionandcommunitydevelopment;approximatelyRMB40,000throughanemployeeonlinestep-donationcampaigntoorganizationssuchastheOneFoundationinShenzhen,theBeijingEntrepreneurEnvironmentalProtectionFoundation,andtheTongxinGuangcaiCharityFoundationinGuizhou;andRMB400,000tosupport45underprivilegedstudentsinBaichengthroughthelocal“HanhaiLixue”initiative,helpingthemovercomefinancialchallengesandcontinuetheireducation.FurtherdonationsmadebytheTibetMeihuaCharityFoundationincludedRMB70,000toimpoverishedhouseholdsinShandong,RMB65,000toWujiaquNo.3PrimarySchoolinXinjiangtosupporttheconstructionofareadingpavilionandpromoteareadingculture,andRMB50,000toTianjinUniversity.TheFoundationalsodonatedRMB165,000toassistunderprivilegedstudentsinDuobiTownshipandBeilaTownPrimarySchoolinTibet,helpingtoalleviatetheirfinancialdifficultiesandsupporttalentdevelopmentinthewesternregions.RMB50,000wasdonatedtoNaggaVillageinTibetfortherenovationofthevillageactivitycenter,enrichingcommunitylifeandpromotingsocialharmony.Additionally,RMB75,000wasgiventoBeilaTownHealthCentertoaidinthedevelopmentofhealthcareservicesinTibet,whileRMB200,000wasprovidedtotheTibetHighlandCulturalDevelopmentFoundationtopromoteculturalinitiativesintheregion.TheFoundationalsocontributedRMB150,000totheTibetChildren’sWelfareInstitutetoimprovechildren’slivingconditionsandeducationalenvironmentsfortheirhealthygrowthanddevelopment.Finally,130tonsoffertilizer,valuedatRMB104,000,weredonatedtoregisteredimpoverishedhouseholdsinTongliaotosupportlocalagricultureandhelpfarmersincreasetheirincome.
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AsavitalpartoftheCompany’ssustainabledevelopmentefforts,theTibetMeihuaCharityFoundationwillcontinuetoupholditsmissionof“givingbacktosocietyandbenefitingthepeople,”constantlyinnovatinginitscharitableapproaches,expandingitspublicwelfareoutreach,anddemonstratingastrongsenseofcorporatesocialresponsibilitythroughconcreteactions.III.ConsolidationandExpansionofAchievementsinPovertyAlleviationandWorkRelatedtoRuralRevitalization
√Applicable?Notapplicable
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Povertyalleviationandruralrevitalizationprojects
| Povertyalleviationandruralrevitalizationprojects | Amount/content | Remark |
| Externaldonationsandcharityprojects | 217.37 | |
| Totalspending(‘0000yuan) | 206.97 | |
| including:funds(‘0000yuan) | 10.4 | |
| valueofsupplies(‘0000yuan) | 10,729 | |
| Formofsupport(suchasindustrialpovertyalleviation,povertyalleviationthroughemploymentopportunities,povertyalleviationthrougheducation,etc.) | Povertyalleviationthrougheducation,medicalassistancepovertyalleviation,industrialpovertyalleviation,infrastructurepovertyalleviation,socialsecuritypovertyalleviation,andpsychologicalcareassistance,etc. |
Specificinformation
√Applicable?Notapplicable
Whilerapidlydevelopingandstrivingtoenhanceeconomicbenefits,theCompanyfullyleveragesitsindustryadvantages,activelyparticipatesinandsupportspublicwelfarecauses,andcarriesoutaseriesofpublicwelfareactivitiescoveringruralrevitalization,medicalassistancepovertyalleviation,industrialpovertyalleviation,infrastructurepovertyalleviation,socialsecuritypovertyalleviation,andpsychologicalcareassistance,amongotherareas.TheCompanyiscommittedtopromotingsocialwelfarethroughcharity,fulfillingitssocialresponsibilitywiththespiritof“benefitingtheworld,”andstrivingtobecomeacompanythatisnotonlyresponsiblebutalsofullofwarmth.
In2024,theTibetMeihuaPublicWelfareFoundationdonatedRMB920,000totheShanghaiChunheYouthDevelopmentCenter’sResearch-BasedLearningPublicWelfareProject,aimingtoopenupa“Research-BasedLearning”curriculumforstudentsinJilinBaichengandruralchildreninGuizhou.Thisinitiativecreatesanopenspaceandclassroomtohelpstimulateinnovativethinkingandhelpthesestudentsdiscoveramoreindependent,open,andconfidentversionofthemselves.ThroughtheBlueEnvelopeCommunicationVolunteerActivity,thefoundationorganizedemployeevolunteerstoprovidelong-termpsychologicalcompanionshipandcareto110ruralchildreninGuizhou.Throughthe“HanHaiLiXue”campaigninBaicheng,thefoundationdonatedRMB400,000tosupport45underprivilegedstudents,helpingthemresolvepracticaldifficultiesandensuringtheycansuccessfullycompletetheirstudies.Additionally,thefoundationdonatedRMB70,000toimpoverishedhouseholdsinShandong,RMB165,000tosupportunderprivilegedstudentsinDuobiTownshipandBeilaTownPrimarySchoolinTibettoalleviatehardshipsandfostertalentdevelopmentinwesternregions,RMB50,000toNaggaVillageinTibetfortherenovationofthevillageactivitycenter,andRMB75,000toBeilaTownHealthCentertosupportthedevelopmentofhealthcareservicesinTibet.Furthermore,RMB200,000wasdonatedtotheTibetHighlandCulturalDevelopmentFoundationtosupportculturalinitiativesintheregion,andRMB150,000wasdonatedtotheTibetChildren’sWelfareInstitutetoimprovechildren’s
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livingconditionsandeducationalenvironments,promotingtheirhealthygrowthandcomprehensivedevelopment.Thefoundationalsodonated130tonsoffertilizer(worthRMB104,000)toregisteredimpoverishedhouseholdsinTongliao,supportinglocalagriculturaldevelopment,increasingfarmers’income,anddrivingruralrevitalization.
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Section6SignificantMatters
I.FulfillmentofCommitments(I)Commitmentsofrelevantparties,includingtheCompany’sactualcontroller,shareholders,relatedparties,acquirers,andtheCompany
√Applicable?Notapplicable
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Commitmentbackground
| Commitmentbackground | Typeofcommitment | Commitmentmadeby | Contentofcommitment | Dateofcommitment | Whetherthereisadeadline | Deadline | Whetheritisstrictlyfulfilledinduecourse | Ifitisnotfulfilledinduecourse,statethespecificreasons | Ifitisnotfulfilledinduecourse,statetheplanforthenextstep |
| Commitmentsrelatedtotherestructuringofmajorassets | Solvinghorizontalcompetition | MengQingshanandpersonsactinginconcert | DuringtheperiodwhenMr.MengQingshanandthepersonsactinginconcertserveastheCompany’scontrollingshareholderandactualcontroller,effectivemeasureswillbetaken,andMr.MengQingshanortheholdingsubsidiariesunderMr.MengQingshanandthepersonsactinginconcertwilltakeeffectivemeasuresnottoengageinanybusinessthatmaycompetewiththatofthelistedcompanyoritssubsidiaries. | July19,2010 | No | Yes | Notapplicable | Notapplicable | |
| Solvingrelated-partytransactions | MengQingshanandpersonsactinginconcert | Uponcompletionoftherestructuring,Mr.MengQingshanandthepersonsactinginconcertwillavoidrelated-partytransactionswiththelistedcompanywhereverpossible.Ifthereisanyunavoidablerelated-partytransaction,Mr.MengQingshanandthepersonsactinginconcertwillenterintoagreementswiththelistedcompanyinaccordancewithlaws,performlawfulprocedures,fulfillthedutyofinformationdisclosure,andgothroughformalitiestoobtainapprovalinaccordancewithrelevantlaws,regulations,andtheArticlesofAssociation.Theyundertakenottoharmthelegitimaterightsandinterestsofthelistedcompanyandothershareholdersthroughrelated-partytransactions. | July19,2010 | No | Yes | Notapplicable | Notapplicable | ||
| Others | MengQingshanandpersonsactinginconcert | Uponcompletionofthetransaction,theywillmaintaintheindependenceofthelistedcompany,observetheprincipleofseparationinpersonnel,finance,institution,andbusiness,andrunthelistedcompanyinaccordancewiththerelevantCRSCrules. | July19,2010 | No | Yes | Notapplicable | Notapplicable |
(II)WhethertheCompanyreachedtheoriginalprofitforecastinrespectofanyassetorproject,iftherewasaprofitforecastfortheassetorprojectanditwasstilltheprofitforecastperiodduringtheReportingPeriodandstatementofthereasons?Yes?No√Notapplicable(III)Accomplishmentofcommittedperformanceanditsimpactonthegoodwillimpairmenttest?Applicable√Notapplicable
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II.UseofFundsbyControllingShareholderandRelatedPartiesforNon-operational
PurposesDuringtheReportingPeriod?Applicable√NotapplicableIII.GuaranteesinViolationofRegulations?Applicable√Notapplicable
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IV.NotesoftheBoardofDirectorsonthe“ModifiedAuditReport”fromtheCPAFirm?Applicable√NotapplicableV.AnalysisoftheReasonsforChangesinAccountingPoliciesorAccountingEstimatesorCorrectionofMaterialAccountingErrorsandtheEffect(I)Analysisofthereasonsforchangesinaccountingpoliciesoraccountingestimatesandtheeffect
√Applicable?Notapplicable1．Changesinaccountingpolicies
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Changesinaccountingpoliciesandthereasons
| Changesinaccountingpoliciesandthereasons | Remark |
| TheCompanyhasimplementedthe“AccountingTreatmentforSaleandLeasebackTransactions”underInterpretationNo.17oftheAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinancein2023,effectivefromJanuary1,2024. | （1） |
| TheCompanyhasalsoimplementedthe“ProvisionalProvisionsonAccountingTreatmentforCorporateDataResources”issuedbytheMinistryofFinanceonAugust1,2023,effectivefromJanuary1,2024. | （2） |
| TheCompanywillimplementthe“InterpretationNo.18oftheAccountingStandardsforBusinessEnterprises”issuedbytheMinistryofFinanceonDecember6,2024,effectivefromDecember6,2024. | （3） |
(1)ImpactofImplementingInterpretationNo.17oftheAccountingStandardsforBusinessEnterprisesOnOctober25,2023,theMinistryofFinanceissuedInterpretationNo.17oftheAccountingStandardsforBusinessEnterprises(CK[2023]No.21,hereinafterreferredtoas“InterpretationNo.17”).TheCompanywillimplementInterpretationNo.17fromJanuary1,2024(the“ImplementationDate”).TheimplementationofInterpretationNo.17doesnothaveasignificantimpactonthefinancialstatementsforthisreportingperiod.
1)ClassificationofCurrentandNon-currentLiabilitiesTheCompanywillimplementInterpretationNo.17ontheclassificationofcurrentandnon-currentliabilitiesfromtheImplementationDate.Thefinancialstatementsforthisperiodremainlargelyunaffectedbythechanges.
2)DisclosureofSupplierFinancingArrangementsAccordingtoInterpretationNo.17,theCompanyisnotrequiredtodisclosecomparableperiodinformationandisalsonotrequiredtodiscloseinitialinformationregarding“amountsreceivedbysuppliersfromfinancingproviders”in“financialliabilities”orthe“paymentduedaterangeoffinancialliabilities,aswellasthepaymentduedaterangeforcomparablepayablesnotpartofsupplierfinancingarrangements.”
3)AccountingTreatmentforSaleandLeasebackTransactionsTheCompanywillimplementInterpretationNo.17ontheaccountingtreatmentforsaleandleasebacktransactionsfromtheImplementationDate.Theimplementationofthisinterpretationdoesnothaveasignificantimpactonthefinancialstatementsforthisreportingperiod.
(2)ImpactofImplementingtheProvisionalProvisionsonAccountingTreatmentforCorporateDataResources
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TheCompanywillimplementtheProvisionalProvisionsonAccountingTreatmentforCorporateDataResources(hereinafterreferredtoasthe“ProvisionalProvisions”)fromJanuary1,2024.TheimplementationoftheProvisionalProvisionsdoesnothaveasignificantimpactonthefinancialstatementsforthisreportingperiod.
(3)ImpactofImplementingInterpretationNo.18oftheAccountingStandardsforBusinessEnterprises
OnDecember6,2024,theMinistryofFinanceissuedInterpretationNo.18oftheAccountingStandardsforBusinessEnterprises(CK[2024]No.24,hereinafterreferredtoas“InterpretationNo.18”).TheCompanywillimplementInterpretationNo.18fromDecember6,2024.TheimplementationofInterpretationNo.18doesnothaveasignificantimpactonthefinancialstatementsforthisreportingperiod.(II)Analysisofthereasonsforcorrectionofmaterialaccountingerrorsandtheeffect?Applicable√Notapplicable(III)CommunicationwithpreviouslyappointedCPAfirms
√Applicable?Notapplicable
Duringthereportingperiod,theCompanycommunicatedwithboththeformerandtheincomingaccountingfirmsregardingthechangeofauditor.Bothpartieswereinformedofthechangeandraisednoobjections.TheformerandincomingaccountingfirmsconductedcommunicationsandrespondedtorelevantinquiriesinaccordancewiththeChinaStandardsonAuditingNo.1153—CommunicationBetweenPredecessorandSuccessorAuditorsandotherapplicablerequirements.(IV)Reviewandapprovalproceduresandotherinformation
√Applicable?Notapplicable
Theabovechangesinaccountingpoliciesandthechangeofaccountingfirmwerereviewedandapprovedatthe9thmeetingofthe10thBoardofDirectorsoftheCompany.VI.AppointmentandDismissalofCPAFirms
Unit:yuanCurrency:RMB
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FormerCPAfirminservice
| FormerCPAfirminservice | CurrentCPAfirminservice | |
| NameofdomesticCPAfirm | DaHuaCPAsLLP(specialgeneralpartnership) | Zandar(Shenzhen)CPAsLLP(specialgeneralpartnership)(formerlyknownasDaHuaCPAsLLP(specialgeneralpartnership)) |
| RemunerationfordomesticCPAfirm | 1,400,000.00 | 1,400,000 |
| LimitonyearsofauditbydomesticCPAfirm | 14 | 1 |
| NamesofCPAsfromdomesticCPAfirm | GongChenyan,LiQianqian | LiuQianqian,LiQianqian |
| TotalyearsofauditservicebyCPAsfromdomesticCPAfirm | GongChenyan(3years),LiQianqian(2years) | LiuQianqian(1year),LiQianqian(3years) |
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Name
| Name | Remuneration | |
| CPAfirmforinternalcontrolaudit | Zandar(Shenzhen)CPAsLLP(specialgeneralpartnership)(formerlyknownasDaHuaCPAsLLP(specialgeneralpartnership)) | 800,000 |
ExplanationofappointmentanddismissalofCPAfirm
√Applicable?NotapplicableInlightoftheoriginalauditteamservingtheCompanyhavingjoinedDaHuaCPAsLLP(specialgeneralpartnership),andinordertoensurecontinuityoftheCompany’sauditwork,theCompany,uponapprovalatthe2023AnnualGeneralMeetingofShareholders,appointedDaHuaCPAsLLP(specialgeneralpartnership)astheauditorfortheCompany’s2024financialstatementsandinternalcontrols.Subsequently,asapprovedbytheShenzhenMunicipalAdministrationforMarketRegulation,DaHuaCPAsLLP(specialgeneralpartnership)changeditsnametoZandar(Shenzhen)CPAsLLP(SpecialGeneralPartnership).Followingthenamechange,allrelevantprofessionalqualifications,rights,andobligationshavebeenassumedbyZandar(Shenzhen)CPAsLLP(SpecialGeneralPartnership).ExplanationofappointmentofanotherCPAfirmduringtheauditperiod?Applicable√NotapplicableExplanationofareductioninauditfeesbymorethan20%(inclusive)fromprioryear?Applicable√NotapplicableVII.DelistingRisk(I)Causesofdelistingriskwarning?Applicable√Notapplicable(II)CountermeasuresplannedbytheCompany?Applicable√Notapplicable(III)Terminationoflisting?Applicable√NotapplicableVIII.BankruptcyandRestructuring-RelatedMatters?Applicable√NotapplicableIX.SignificantLitigationandArbitration
√TheCompanyhadsignificantlitigationorarbitrationintheyear?TheCompanydidnothavesignificantlitigationorarbitration
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(I)Circumstancesinwhichlitigationorarbitrationwasdisclosedinprovisionalannouncementsbutdidnotsubsequentlyprogress?Applicable√Notapplicable(II)Circumstancewhereanylitigationorarbitrationwasnotdisclosedinprovisionalannouncementsorprogressedsubsequently?Applicable√Notapplicable(III)Otherinformation
√Applicable?Notapplicable
1.LitigationrelatedtoformerDalianHanxinBio-PharmaceuticalsCo.,Ltd.AccordingtotheShareTransferAgreementforthetransferof100%ofthesharesofDalianHanxinBio-PharmaceuticalsCo.,Ltd.(formernameandnowknownasAIMHonestyBio-PharmaceuticalsCo.,Ltd.,hereinafterreferredtoas“AIMHonesty”)bytheCompany’swholly-ownedsubsidiaryLhasaMeihuaBio-investmentHoldingsCo.,Ltd.toLiaoningAIMBio-vaccineTechnologyGroupCo.,Ltd.(formernameandnowknownasAIMVaccineCo.,Ltd.),LhasaMeihuaBio-investmentHoldingsCo.,Ltd.undertakesthat,exceptfortheliabilitiesspecificallystatedintheauditreportandthefinancialstatementsprovidedtotheacquirerandtheliabilitiesthatoccurredabnormallyinthenormalcourseofbusinessofAIMHonestyanditssubsidiariesaftertheauditbenchmarkdateandhasbeendisclosedtotheacquirer,AIMHonestyanditssubsidiariesdidnothaveanyotherdebtsorcontingentdebts.Intheeventthatitviolatestheundertaking,itshallbearcompensationliabilityforallthedirectorindirecteconomiclossessufferedbyotherpartiesduetotheviolation.Inaccordancewiththeaforementionedprovision,theCompanyhasperformedtheobligationforpartialcompensation.Formoredetails,refertotheCompany’spreviousannualreports.
TheCompany’ssubsidiaryLhasaMeihuaBio-investmentHoldingsCo.,Ltd.(hereinafterreferredtoas“LhasaMeihua”)receivedtheNoticeonRepayingDebtsfromAIMHonestyonOctober13,2020.Accordingto(2015)DMSCZNo.438CivilJudgementissuedbytheDalianIntermediatePeople’sCourtofLiaoning,KunmingSunwiseMeasureandControlTechnologyCo.,Ltd.(hereinafterreferredtoas“SunwiseMeasureandControl”)usedtherightofuseofParcels17-1-3,17-2,andfiveabove-groundpropertieslocatedintheindustrialbaseatKunmingEconomicandTechnologicalDevelopmentZoneunderitsnametoprovidetheguaranteeforAIMHonestytoborrowloansfromBankofJilinCo.,Ltd.DalianBranchundertheRenminbiBorrowingsContract(2014LJZDL1114010272).ThejudicialsaleoftheabovelandparcelsandpropertiespledgedwasdoneonApril19,2018.Thepaymentfromthesalewillbeusedtorepaythebankloans,andSunwiseMeasureandControlisentitledtoseekcompensationfromAIMHonesty.
Accordingtorelevantagreements,includingtheAgreementontheTransferoftheSharesofDalianHanxinBio-PharmaceuticalsCo.,Ltd.betweentheCompany’ssubsidiary,LhasaMeihua,andAIMVaccineCo.,Ltd.,LhasaMeihuashallberesponsibleforsolvingtherealizationofthenon-operatingcreditor’srightandthesettlingofdebtsforAIMHonestyinrespectofitsformershareholder,Tibet
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YiyuanIndustryCo.,Ltd.(hereinafterreferredtoas“TibetYiyuan”).Basedonthat,AIMHonestygavetheaforementionedNoticeonRepayingDebtstoLhasaMeihua.Accordingtorelevantdocuments,includingthesharetransferagreementbetweenLhasaMeihuaandAIMHonesty’sformershareholder,TibetYiyuan,TibetYiyuanshallberesponsibleforrealizingthenon-operatingcreditor’srightsandsettlingdebtsforAIMHonesty.Basedontheaforementionedrelevantagreements,therelatedpartieshaveagreedthatTibetYiyuananditsrelatedpartiesshallinherittheaforementioneddebtsarisingfromtherightofrecourseandtheinterest.
InDecember2021,accordingtothecopyofthecomplaint,thenoticeofappearance,andotherrelevantdocumentsforwardedbyAIMHonestyfromtheserviceoftheKunmingIntermediatePeople’sCourtregardingthecaseofcontractualdisputeinwhichKunmingSunwiseIndustryCo.,Ltd.(holding100%ofthesharesofSunwiseMeasureandControl,hereinafterreferredtoas“SunshineIndustry”)filedalawsuitagainstAIMHonestyandthethirdparty,SunwiseMeasureandControl,whichwasitsshareholder,SunwiseIndustryenteredthebankruptcyandliquidationproceedingsasruledbytheKunmingIntermediatePeople’sCourtonMarch15,2019,andthecourtdesignatedYunnanZhenxuLawFirmastheadministrator.TheadministratorforSunwiseIndustryfiledalawsuit,citingthefactthatSunwiseMeasureandControlfailedtoclaimcompensationfromAIMHonestyafterperformingtheguaranteeobligationanddemandedpaymentfromAIMHonestytoSunwiseMeasureandControlforthereceivablesaswellastheinterestandthefundoccupationfee.Aspreviouslystated,inaccordancewiththeprovisionsofrelevantagreements,theCompanyhasreachedanagreementwithallrelatedpartiesthatTibetYiyuananditsrelatedpartiesinheritalldebtsarisingfromtherightofrecourseandtheinterest.
OnOctober18,2022,theKunmingIntermediatePeople’sCourtenteredthefollowingjudgement:1)theDefendantAIMHonestyBio-PharmaceuticalsCo.,Ltd.repay28,967,179.55yuantothethirdpersonKunmingSunwiseMeasureandControlTechnologyCo.,Ltd.within10daysoftheentryintoforceofthejudgement;2)theDefendantAIMHonestyBio-PharmaceuticalsCo.,Ltd.paythefundoccupationfeetothethirdpersonKunmingSunwiseMeasureandControlTechnologyCo.,Ltd.within10daysoftheentryintoforceofthejudgement,using28,967,179.55asthebasisfortheperiodfromAugust17,2021untilthedateofpayment,basedontheloanprimerate;and3)otherclaimsmadebythePlaintiffKunmingSunwiseIndustryCo.,Ltd.berejected.
OnJune30,2023,theYunnanHighPeople’sCourtissuedajudgmentwithDocumentNo.(2023)YMZNo.324,rulingtorejecttheappealandupholdtheoriginaljudgment.AIMHonestyhasappliedforaretrialwiththeSupremePeople’sCourtinrespectoftheabovedispute.OnMarch26,2024,theSupremePeople’sCourtissuedCivilRulingNo.(2023)ZGFMZNo.1737,decidingthat:(1)thecasewouldberetriedbytheSupremePeople’sCourt;and(2)theenforcementoftheoriginaljudgmentwouldbesuspendedduringtheretrial.OnOctober10,2024,thecasewasheardbytheSupremePeople’sCourt.Asofthedateofthisreport,thejudgmenthasnotyetbeenissued.
AsofDecember31,2024,theCompanyaccruedatotalofRMB32,438,161.92inestimatedcompensationforliabilitiesandrelatedinterestbasedonthejudgmentoftheYunnanHighPeople’s
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Court.
2.LitigationrelatedtoShandongFufengFermentationCo.,Ltd.ShandongFufengFermentationCo.,Ltd.(“ShandongFufeng”)filedalawsuitagainsttheCompanyanditssubsidiaryXinjiangMeihuaoveradisputeconcerningtradesecretsrelatedtoxanthangumproduction.Throughmultipletrialsofthecourt,theSupremePeople’sCourtenteredthefinaljudgementonJanuary9,2024:1)XinjiangMeihuaAminoAcidsCo.,Ltd.,MeihuaHoldingsGroupCo.,Ltd.,andZhangWeiimmediatelydiscontinuetheinfringementofShandongFufengFermentationCo.,Ltd.’stradesecretfortheproductionofxanthangum,includingnotdisclosing,using,orallowingotherstousethesaidtradesecretfortheproductionofxanthangum;2)XinjiangMeihuaAminoAcidsCo.,Ltd.,MeihuaHoldingsGroupCo.,Ltd.,andZhangWeicompensateShandongFufengFermentationCo.,Ltd.foraneconomiclossof15millionyuanwithintendaysoftheentryintoforceofthejudgement.
OnMarch5,2024,theJinanIntermediatePeople’sCourtofShandongProvinceissuedanEnforcementNotice(2024)Lu01ZhiNo.573,statingthattheSupremePeople’sCourt’sjudgment(2022)ZGFMZNo.64hadbecomelegallyeffective.ShandongFufengappliedforenforcement,requesting:(1)performanceofobligationsstipulatedintheeffectivelegaldocument;(2)paymentofdoubleinterestfordelayedperformance;(3)paymentofenforcementfeesofRMB500.Priortoreceivingtheaboveenforcementnotice,XinjiangMeihuahadvoluntarilyfulfilledthecompensationobligationofRMB15milliononFebruary1,2024.
Followingreceiptoftheenforcementnotice,theCompanyactivelycooperatedwiththeenforcementproceedingsoftheJinanIntermediatePeople’sCourt(“JinanCourt”).InDecember2024,theCompanyreceivedtheEnforcementRulingandPenaltyDecisionissuedbytheJinanCourtunderthesamecasenumber.TheJinanCourtdeterminedthatXinjiangMeihuaandMeihuaBiotechnologyfailedtoperformtheobligationsdeterminedinthejudgment(2022)ZGFMZNo.64bytheSupremePeople’sCourt.Asaresult,theCourtincludedXinjiangMeihuaandMeihuaBiotechnologyinthelistofdishonestjudgmentdebtorsandimposedfinesofRMB1milliononeachparty.Fordetails,pleaserefertothe“AnnouncementonInclusionoftheCompanyandItsSubsidiaryintheListofDishonestJudgmentDebtors”(AnnouncementNo.2024-064).
OnFebruary13,2025,XinjiangMeihuareceivedaNoticeofResponseandrelateddocumentsfromtheShandongHighPeople’sCourt.ShandongFufengfiledanewlawsuitagainsttheCompanyandXinjiangMeihuaonthegroundsofcontinuedinfringement.Fordetails,pleaserefertothe“AnnouncementonLitigationInvolvingtheCompanyandItsSubsidiary”(AnnouncementNo.2025-010).
UnderthemediationofenforcementjudgesfromtheJinanCourt,theCompanyanditswholly-ownedsubsidiaryXinjiangMeihuareachedanenforcementsettlementagreementwithShandongFufenginearlyMarch2025regardingthexanthangumproductiontradesecretsdispute.Accordingtotheagreement,theCompanyandXinjiangMeihuamadeaone-timesettlementpaymentofRMB233milliontoShandongFufengbyMarch14,2025.Inreturn,ShandongFufengagreedtofileawithdrawalapplicationwiththeShandongHighPeople’sCourtforCaseNo.(2025)LuMinChuNo.4byMarch7,
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2025,andtorequesttheJinanCourttolifttheenforcementmeasuresagainsttheCompany,XinjiangMeihua,andrelevantindividuals,includingbutnotlimitedtotheremovalfromthelistofdishonestdebtors,andtocooperateinconcludingtheenforcementprocess.Fordetails,pleaserefertothe“AnnouncementonLitigationProgressInvolvingtheCompanyandItsSubsidiary”(AnnouncementNo.2025-013).OnMarch12,2025,theJinanIntermediatePeople’sCourtissuedaCaseClosureNotice,confirmingthatallpartieshadfulfilledtheirrespectiveobligationsunderthesettlementagreementasofthatdate.ThelistingoftheCompanyandXinjiangMeihuaasdishonestjudgmentdebtorshasbeenexpungedfromthepublicdatabase,andJudgmentNo.(2022)ZGFMZ64hasbeenfullyenforced.X.AllegedViolationsofandPunishmentsontheListedCompanyaswellasitsDirectors,Supervisors,Officers,ControllingShareholder,andActualController,andtheRectifications?Applicable√NotapplicableXI.CreditStatusesoftheCompanyaswellasitsControllingShareholderandActualControllerduringtheReportingPeriod?Applicable√NotapplicableXII.SignificantRelated-PartyTransactions(I)Related-partytransactionsrelatedtoday-to-dayoperations
1.Mattersthatweredisclosedinprovisionalannouncementsanddidnotprogressorchangesubsequently?Applicable√Notapplicable
2.Mattersthatweredisclosedinprovisionalannouncementsbutprogressedorchangedsubsequently
√Applicable?Notapplicable
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1)Related-partytransactionsconcerningthepurchaseofcommoditiesorthereceivingoflaborservices
| 1)Related-partytransactionsconcerningthepurchaseofcommoditiesorthereceivingoflaborservices | |||
| Relatedparty | Contentofrelated-partytransaction | Amountincurredinthecurrentperiod(yuan) | Amountincurredinthepreviousperiod(yuan) |
| BeitunZefengAgriculturalDevelopmentCo.,Ltd. | Goods | 75,539,223.56 | 66,793,916.44 |
| BeitunZefengAgriculturalDevelopmentCo.,Ltd. | Services | 26,489.59 | 23,899.93 |
| Total | 75,565,713.15 | 66,817,816.37 | |
2)Related-partyleases
| 2)Related-partyleases | |||
| WheretheCompanyisthelessor | |||
| Nameoflessee | Typeofleasedasset | Rentalincomerecognizedinthecurrentperiod(yuan) | Rentalincomerecognizedinthepreviousperiod(yuan) |
| TongliaoDeshengBio-techCo.,Ltd. | Housing | 2,739,061.65 | 2,200,057.73 |
| Total | 2,739,061.65 | 2,200,057.73 |
3.Significantrelated-partytransactionsnotpreviouslydisclosedinprovisionalannouncements
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?Applicable√Notapplicable(II)Related-partytransactionsconcerningthepurchaseorsalesofassetsorshares
1.Mattersthatweredisclosedinprovisionalannouncementsanddidnotprogressorchangesubsequently?Applicable√Notapplicable
2.Mattersthatweredisclosedinprovisionalannouncementsbutprogressedorchangedsubsequently?Applicable√Notapplicable
3.Significantrelated-partytransactionsnotpreviouslydisclosedinprovisionalannouncements?Applicable√Notapplicable
4.Whereitinvolvesagreementsonperformancetargets,theCompanyshoulddisclosetheaccomplishmentofperformancetargetsduringtheReportingPeriod?Applicable√Notapplicable(III)Significantrelated-partytransactionsconcerningjointoutboundinvestment
1.Mattersthatweredisclosedinprovisionalannouncementsanddidnotprogressorchangesubsequently?Applicable√Notapplicable
2.Mattersthatweredisclosedinprovisionalannouncementsbutprogressedorchangedsubsequently?Applicable√Notapplicable
3.Significantrelated-partytransactionsnotpreviouslydisclosedinprovisionalannouncements?Applicable√Notapplicable(IV)Related-partydealingsofcreditor’srightanddebts
1.Mattersthatweredisclosedinprovisionalannouncementsanddidnotprogressorchangesubsequently?Applicable√Notapplicable
2.Mattersthatweredisclosedinprovisionalannouncementsbutprogressedorchangedsubsequently?Applicable√Notapplicable
3.Significantrelated-partytransactionsnotpreviouslydisclosedinprovisionalannouncements?Applicable√Notapplicable(V)FinancebusinessbetweentheCompanyandrelatedfinancecompanies,theCompany’sholdingfinancecompanies,andrelatedparties?Applicable√Notapplicable(VI)Miscellaneous?Applicable√NotapplicableXIII.MajorContractsandPerformance(I)Trusteeship,contracting,andleasematters
1.Trusteeship?Applicable√Notapplicable
2.Contracting
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?Applicable√Notapplicable
3.Leases?Applicable√Notapplicable(II)Guarantees
√Applicable?Notapplicable
Unit:yuanCurrency:RMB
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TheCompany’sexternalguarantees(excludingguaranteesforsubsidiaries)
| TheCompany’sexternalguarantees(excludingguaranteesforsubsidiaries) | |
| TotalbalanceofguaranteesattheendoftheReportingPeriod(A)(excludingguaranteesforsubsidiaries) | |
| TheCompany’sanditssubsidiaries’guaranteeforsubsidiaries | |
| TotalamountofguaranteesincurredduringtheReportingPeriod | 3,335,130,475.52 |
| TotalbalanceofguaranteesforsubsidiariesattheendoftheReportingPeriod(B) | 1,196,732,044.83 |
| TheCompany’stotalguarantees(includingguaranteesforsubsidiaries) | |
| Totalguarantees(A+B) | 1,196,732,044.83 |
| ProportionoftotalguaranteesintheCompany’snetassets(%) | 8.21 |
(III)Cashassetmanagementthroughtrusteeship
1.Entrustedfinancing
(1)Overviewofentrustedfinancing
√Applicable?Notapplicable
Unit:‘0000yuanCurrency:RMB
| Type | Fundsource | Transactedamount | Balanceundue | Overduebalancenotrecovered |
| Bankfinancing | Self-ownedfunds | 276,380.00 | 26,894.41 | |
| Trustfinancing | Self-ownedfunds | 18,000.00 | ||
| Brokerageproducts | Self-ownedfunds | 1,000.00 | 1,000.00 | |
| Others | Self-ownedfunds | 15,540.00 | 5,000.00 |
Otherinformation?Applicable√Notapplicable
(2)Singleentrustedfinancing?Applicable√NotapplicableOtherinformation?Applicable√Notapplicable
(3)Impairmentprovisionsforentrustedfinancing?Applicable√Notapplicable
2.Entrustedloans
(1)Overviewofentrustedloans?Applicable√NotapplicableOtherinformation?Applicable√Notapplicable
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(2)Singleentrustedloans?Applicable√NotapplicableOtherinformation?Applicable√Notapplicable
(3)Impairmentprovisionsforentrustedloans?Applicable√Notapplicable
3.Otherinformation?Applicable√Notapplicable(IV)Othermajorcontracts?Applicable√NotapplicableXIV.Progressoftheuseofraisedfunds?Applicable√NotapplicableXV.OtherImportantMattersThatHaveaMajorEffectonInvestors’ValueJudgementandInvestmentDecision-Making
√Applicable?Notapplicable
1.Progressofsharerepurchases
(1)PreviousShareRepurchaseTheCompanyheldthe3
rdmeetingofthetenthsessionoftheboardofdirectorsandthe2
nd
extraordinarygeneralmeetingof2023onApril8,2023,andApril28,2023,respectively.TheProposalonRepurchasingtheCompany’sSharesbyMeansofCentralizedBiddingwasdeliberatedandapprovedatthemeetings.OnApril29,2023,theCompanydisclosedtheRepurchaseReportofMeihuaHoldingsGroupCo.,Ltd.ontheRepurchaseofSharesbyMeansofCentralizedBidding.OnMay10,2023,theCompanycarriedoutthefirstrepurchase.Fordetails,refertotherelevantannouncementpublishedbytheCompanyonthewebsiteoftheShanghaiStockExchange(www.sse.com.cn).
OnApril30,2024,theCompanyissuedthe“AnnouncementontheResultsofShareRepurchaseandChangesinShares”(AnnouncementNo.2024-031).TheCompanyhascompletedtherepurchaseplan,havingrepurchasedatotalof90,637,352shares,accountingfor3.08%ofthetotalsharecapitaloftheCompanyatthetime(2,943,426,102shares).TheaveragerepurchasepricewasRMB9.49pershare,withatotalpaymentofRMB86,003.02thousand(excludingtransactionfees).TheserepurchasedshareswerecanceledonApril30,2024,byChinaSecuritiesDepositoryandClearingCorporationLimited.Afterthecancellation,theCompany’stotalsharecapitalwaschangedfrom2,943,426,102sharesto2,852,788,750shares,andthenecessaryindustrialandcommercialregistrationproceduresforthecapitalchangehavebeencompleted.
(2)OngoingRepurchasePlan
TheCompanyheldthe13thmeetingofthe10thBoardofDirectorsonSeptember23,2024,andthesecondextraordinarygeneralmeetingofshareholdersin2024onOctober11,2024.Duringthese
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meetings,theproposalonthesharerepurchasethroughcentralizedbiddingtransactionswasapproved.OnOctober12,2024,theCompanydisclosedthe“RepurchaseReportofMeiHuaBiotechnologyGroupCo.,Ltd.onShareRepurchasethroughCentralizedBiddingTransactions,”andthefirstrepurchasewasimplementedonOctober23,2024.Formoredetails,pleaserefertotherelatedannouncementsdisclosedbytheCompanyontheShanghaiStockExchangewebsite(www.sse.com.cn).AsoftheendofFebruary2025,theCompanyhasrepurchased34,189,100sharesthroughcentralizedbiddingtransactions,accountingfor1.20%oftheCompany’scurrenttotalsharecapital(2,852,788,750shares).ThelowestrepurchasepricewasRMB9.15pershare,andthehighestrepurchasepricewasRMB10.68pershare,withatotalpaymentofRMB338,159,200(excludingtransactionfees).Thisrepurchasecomplieswithrelevantlaws,regulations,normativedocuments,andtheCompany’ssharerepurchaseplan.
2.ImplementationStatusoftheManagementShareholdingIncreasePlanOnJanuary8,2024,theCompanyreceivedanoticefromitsdirectors,supervisors,seniormanagement,andothercoremembersofmanagement(hereinafterreferredtoasthe“Management”).ConfidentintheCompany’sintrinsicvalueandfuturedevelopmentpotential,andwiththeabilitytocontinuouslycreatevalueforinvestors,theManagementproposedtoincreasetheirshareholdingsintheCompany.Theshareholdingincreaseplanwastobecarriedoutwithinsixmonthsfromthedateofthenotice(January8,2024–July8,2024)throughmethodspermittedbytheShanghaiStockExchangetradingsystem(includingbutnotlimitedtocentralizedbiddingandblocktrades).ThetotalamountplannedfortheshareholdingincreasewasnotlessthanRMB80million(includingtransactionfees),withnoupperlimitonthepurchaseprice.Fordetails,pleaserefertotherelevantannouncementsdisclosedbytheCompanyonthewebsiteoftheShanghaiStockExchange.
AsofMay22,2024,thepartiescommittedtoimplementingtheplanhadincreasedtheirshareholdingsbyatotalofRMB82.5561million(includingtransactionfees)throughcentralizedbiddingontheShanghaiStockExchangetradingsystem,exceedingthelowerlimitoftheplannedincreaseamount.Theshareholdingincreaseplanhasbeencompleted.Fordetails,pleaserefertotherelevantannouncementsdisclosedbytheCompanyonthewebsiteoftheShanghaiStockExchange(www.sse.com.cn).
3.ProgressonCross-borderAcquisitionandRelatedAssets
OnNovember23,2024,theCompanyissuedtheAnnouncementontheCross-borderAcquisitionandSigningoftheShareandAssetPurchaseAgreementbyMeihuaBio,statingitsintentiontoacquirethefoodaminoacids,pharmaceuticalaminoacids,andhumanmilkoligosaccharidesbusinessesandrelatedassetsofKyowaHakkoBioCo.,Ltd.(“KyowaHakko”),awholly-ownedsubsidiaryofKirinHoldingsCompany,Limited(“KirinHoldings”),foratotalconsiderationofJPY10.5billion(approximatelyRMB500million).
Asofthedateofthisreport,thetransactionhasnotyetbeencompleted.TheCompanywillcontinuetomonitoritsprogressanddiscloserelevantupdatesinaccordancewithapplicableregulations.
4.UpdateonCompanyVISystemUpgradeandLogoChange
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Tomeettheneedsofinternationaldevelopment,theCompanybeganacomprehensiveupgradeofitsexistingVisualIdentity(VI)SystemonOctober15,2024,andlaunchedanewcorporatelogo.ThenewlogofeaturesamoredistinctiveandmoderndesignthatrepresentstheCompany’sspiritofinnovationandglobalvision,furtherenhancingbrandrecognition,increasingmarketawareness,andsupportingglobalbrandconsistencyandclearlyconveyingtheCompany’smissionandstrategicpositioning.
ComparisonofOriginalandNewLogo:
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OriginalLogo
| OriginalLogo | NewLogo |
Thenewlogoconsistsofbothasymbolandawordmark.Thesymbolinheritstheoriginallogo’sunderlyingmeaningof“harmonyandprosperity.”Basedonacircularshape,thedesignusesarecurringcompositiontoportraytheconceptof“fromonecomestwo,fromtwocomesthree,andfromthreecomesallthings,”symbolizingvitalityandcontinuousgrowth.ThewordmarkretainsonlytheCompany’sEnglishname,presentingamoreinternationalbrandimage.
Inaddition,tocontinuouslyimprovethedigitalserviceexperienceforglobalcustomers,partners,andthepublic,theCompanycompletedafullupgradeofitsofficialwebsiteinFebruary2025.Globaluserscannowaccessup-to-datecompanynewsandbusinessinformationviathenewwebsiteat:
https://www.meihua.group.
Toensureaseamlesstransition,theoriginalwebsite(http://www.meihuagrp.com)willremainaccessibleforoneyear,afterwhichitwillbeformallydecommissionedat24:00(BeijingTime)onFebruary4,2026.
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Section7ShareChangesandShareholders
I.ChangesinShareCapital(I)Tableofsharechanges
1.Tableofsharechanges
Unit:share
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Beforethechange
| Beforethechange | Increase/decrease(+,-) | Afterthechange | |||||||
| Quantity | Proportion(%) | Newsharesissued | Bonusshares | Sharesconvertedfromreservefunds | Others | Subtotal | Quantity | Proportion(%) | |
| I.Restrictedshares | |||||||||
| 1.Sharesheldbythestate | |||||||||
| 2.Sharesheldbystate-ownedlegalpersons | |||||||||
| 3.Sharesheldbyotherdomesticinvestors | |||||||||
| including:sharesheldbydomesticnon-state-ownedlegalpersons | |||||||||
| sharesheldbydomesticnaturalpersons | |||||||||
| 4.Sharesheldbyforeigninvestors | |||||||||
| including:sharesheldbyforeignlegalpersons | |||||||||
| sharesheldbyforeignnaturalpersons | |||||||||
| II.Non-restrictedoutstandingshares | 2,943,426,102 | 100 | -90,637,352 | -90,637,352 | 2,852,788,750 | 100 | |||
| 1.RMBordinaryshares | 2,943,426,102 | 100 | -90,637,352 | -90,637,352 | 2,852,788,750 | 100 | |||
| 2.Domesticallylistedforeignshares | |||||||||
| 3.Overseaslistedforeignshares | |||||||||
| 4.Others | |||||||||
| III.Totalshares | 2,943,426,102 | 100 | -90,637,352 | -90,637,352 | 2,852,788,750 | 100 | |||
2.ExplanationofChangesinShareCapital
√Applicable?Notapplicable
TheCompanyheldthe3rdmeetingofthetenthsessionoftheBoardofDirectorsandthesecondextraordinarygeneralmeetingofshareholdersin2023onApril8andApril28,2023,respectively.At
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themeetings,theProposalonRepurchasingtheCompany’sSharesbyMeansofCentralizedBiddingwasreviewedandapproved.OnApril29,2023,theCompanydisclosedtheRepurchaseReportofMeihuaHoldingsGroupCo.,Ltd.ontheRepurchaseofSharesbyMeansofCentralizedBidding.TheCompanycarriedoutthefirstrepurchaseonMay10,2023.Therepurchasedshareswerecanceledforthepurposeofreducingtheregisteredcapital.Forfurtherdetails,pleaserefertotherelevantannouncementsdisclosedonthewebsiteoftheShanghaiStockExchange(www.sse.com.cn).OnApril30,2024,theCompanyreleasedtheAnnouncementontheImplementationResultsofShareRepurchaseandChangesinShareCapital(AnnouncementNo.2024-031).TheCompanyhadcompletedthesharerepurchaseplan,havingrepurchasedatotalof90,637,352shares,accountingfor
3.08%ofthetotalsharecapitalof2,943,426,102sharesatthetime.TheaveragerepurchasepricewasRMB9.49pershare,andthetotalamountpaidwasRMB860.03million(excludingtransactionfees).TherepurchasedshareswerecanceledonApril30,2024,atChinaSecuritiesDepositoryandClearingCorporationLimited,andthetotalsharecapitaloftheCompanychangedfrom2,943,426,102sharesto2,852,788,750shares.OnDecember31,2024,theCompanycompletedtherelevantindustrialandcommercialregistrationproceduresandobtainedarenewedbusinesslicenseissuedbytheMarketSupervisionAdministrationoftheTibetAutonomousRegion.
3.Effectofsharechangesonfinancialindicatorsforthepastyearandmostrecentreportingperiod,includingearningspershareandnetassetspershare(ifapplicable)?Applicable√Notapplicable
4.OtherinformationthattheCompanydeemsnecessarytodiscloseorasrequiredbythesecuritiesregulatorybody?Applicable√Notapplicable(II)Changesinrestrictedsales?Applicable√NotapplicableII.IssueandListingofSecurities(I)IssueofsecuritiesasoftheReportingPeriod
√Applicable?Notapplicable
Unit:shareCurrency:RMB
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Typeofsharesand
theirderivative
securities
| Typeofsharesandtheirderivativesecurities | Dateofissue | Issueprice(orinterestrate) | Issuedquantity | Dateoflisting | Quantityapprovedforlisting | Enddateoftrading |
| Typeofordinaryshare | ||||||
| OrdinaryA-shares | 2013-3-29 | 6.27 | 399,990,000 | 2014-3-30 | 399,990,000 | |
| Bonds(includingenterprisebonds,debentures,andnon-financialbusinessdebtfinancinginstruments) | ||||||
| Debenture | 2015-7-31 | 4.47% | 15,000,000,000 | |||
| Debenture | 2015-10-31 | 4.27% | 15,000,000,000 | |||
| Otherfinancialderivatives | ||||||
ExplanationoftheissueofsecuritiesasoftheReportingPeriod(forbondswithdifferentinterestsratesduringtheterm,pleaseprovideexplanationseparately):
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?Applicable√Notapplicable(II)ChangesintheCompany’stotalshares,shareholderstructure,andassetandliabilitystructure?Applicable√Notapplicable(III)SharesHeldbyInternalStaff?Applicable√NotapplicableIII.OverviewofShareholdersandActualController(I)Totalnumberofshareholders
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TotalnumberofordinaryshareholdersasoftheendoftheReportingPeriod
| TotalnumberofordinaryshareholdersasoftheendoftheReportingPeriod | 65,991 |
| Totalnumberofordinaryshareholdersasoftheendofthemonthimmediatelypriortothedisclosuredateoftheannualreport | 70,321 |
(II)Sharesheldbythetoptenshareholdersandthetoptenholdersoftradableshares(orholdersofnon-restrictedshares)asoftheendoftheReportingPeriod
Unit:Share
| Sharesheldbythetoptenshareholders(excludingtheshareslentthroughrefinancing) | |||||||
| Shareholder’sname(fullname) | Increase/decreaseduringtheReportingPeriod | Numberofsharesheldattheendoftheperiod | Proportion(%) | Numberofrestrictedsharesheld | Pledged,marked,orfrozenshares | Natureofshareholder | |
| Sharestatus | Quantity | ||||||
| MengQingshan | 854,103,033 | 29.94 | None | Domesticnaturalperson | |||
| BeijingRoyalFortuneCo.,Ltd.--RoyalFortuneHuichenStrategicInvestmentPrivateSecuritiesInvestmentFund | 88,679,769 | 3.11 | None | Other | |||
| HuJijun | 86,044,351 | 3.02 | None | Domesticnaturalperson | |||
| HongKongSecuritiesClearingCompanyLimited | 83,403,927 | 2.92 | None | Other | |||
| WangAijun | 72,452,774 | 2.54 | None | Domesticnaturalperson | |||
| ChinaMerchantsBankCo.,Ltd.--XingquanHerunMixedSecuritiesInvestmentFund | 55,247,808 | 1.94 | None | Other | |||
| LiangYubo | 54,474,218 | 1.91 | None | Domesticnaturalperson | |||
| ChinaMerchantsBankCo.,Ltd.--XingquanHerunFlexibleAllocationMixedSecuritiesInvestmentFund(LOF) | 31,621,940 | 1.11 | None | Other | |||
| YangWeiyong | 30,646,962 | 1.07 | None | Domesticnaturalperson | |||
| AgriculturalBankofChinaLimited–CSI500ExchangeTradedIndexSecurities | 27,984,821 | 0.98 | None | Other | |||
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InvestmentFund
| InvestmentFund | ||||
| Sharesheldbythetoptenholdersofnon-restrictedshares | ||||
| Nameofshareholder | Quantityofnon-restrictedtradablesharesheld | Typeandquantityofshares | ||
| Type | Quantity | |||
| MengQingshan | 854,103,033 | RMBordinaryshare | 854,103,033 | |
| BeijingRoyalFortuneCo.,Ltd.--RoyalFortuneHuichenStrategicInvestmentPrivateSecuritiesInvestmentFund | 88,679,769 | RMBordinaryshare | 88,679,769 | |
| HuJijun | 86,044,351 | RMBordinaryshare | 86,044,351 | |
| HongKongSecuritiesClearingCompanyLimited | 83,403,927 | RMBordinaryshare | 83,403,927 | |
| WangAijun | 72,452,774 | RMBordinaryshare | 72,452,774 | |
| ChinaMerchantsBankCo.,Ltd.--XingquanHerunMixedSecuritiesInvestmentFund | 55,247,808 | RMBordinaryshare | 55,247,808 | |
| LiangYubo | 54,474,218 | RMBordinaryshare | 54,474,218 | |
| ChinaMerchantsBankCo.,Ltd.--XingquanHerunFlexibleAllocationMixedSecuritiesInvestmentFund(LOF) | 31,621,940 | RMBordinaryshare | 31,621,940 | |
| YangWeiyong | 30,646,962 | RMBordinaryshare | 30,646,962 | |
| AgriculturalBankofChinaLimited–CSI500ExchangeTradedIndexSecuritiesInvestmentFund | 27,984,821 | RMBordinaryshare | 27,984,821 | |
| InformationontheRepurchaseAccountAmongtheTopTenShareholders | TheCompany’srepurchaseaccountisnotpresentedinthe“Sharesheldbythetoptenholdersofnon-restrictedshares”section.AsoftheendoftheReportingPeriod,therewere28,808,500oftheCompany’ssharesheldintherepurchaseaccount,accountingfor1.01%oftheCompany’stotalsharesatpresent. | |||
| Informationofvotingtrust,votingtrusteeship,andabstentionofvotingrightsfortheaboveshareholders | Amongtheaboveshareholders,MengQingshan,HuJijun,WangAijun,andLiangYubohavenovotingtrust,votingtrusteeship,andabstentionofvotingrights.Theinformationofvotingtrust,votingtrusteeship,andabstentionofvotingrightsforothershareholdersisnotknown. | |||
| Informationofrelationshipsoractinginconcertoftheaboveshareholders | Amongtheaboveshareholders,MengQingshanandWangAijunarepersonsactinginconcert. | |||
| Informationofpreferredshareholderswithrestoredvotingrightsandthenumberofsharesheldbythem | None | |||
Notes:
1.Asoftheendofthereportingperiod,WangAijunheld57,452,774sharesthrougharegularsecuritiesaccountand15,000,000sharesthroughamargintradingandsecuritieslending(credit)account.Participationofshareholdersholding5%ormore,toptenshareholders,andtoptenholdersofunrestrictedoutstandingsharesinsecuritieslendingthroughthestocklendingandborrowing(SLB)program.?Applicable√NotapplicableChangesintheTopTenShareholdersandTopTenHoldersofUnrestrictedOutstandingSharesDuetoStockLendingandBorrowing(SLB)Activities?Applicable√NotapplicableNumberofsharesheldbythetoptenholdersofrestrictedsharesandtherestrictions?Applicable√Notapplicable
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(III)Strategicinvestorsorgenerallegalpersonsbecomingtoptenholdersduetotheallotmentofnewshares?Applicable√NotapplicableIV.InformationofControllingShareholderandActualController(I)Informationofcontrollingshareholder
1.Legalperson?Applicable√Notapplicable
2.Naturalperson
√Applicable?Notapplicable
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Name
| Name | MengQingshan |
| Nationality | Chinese |
| Whetheraresidentstatusinothercountriesorregionsisobtained | No |
| Majoroccupationandposition | HeservedasChairmanoftheCompanyfromMarch2009toJanuary2017. |
3.ExplanationofcircumstancewheretheCompanydoesnothaveacontrollingshareholder?Applicable√Notapplicable
4.ExplanationofchangesincontrollingshareholderduringtheReportingPeriod?Applicable√Notapplicable
5.DiagramofthepropertyrightandcontrolrelationshipbetweentheCompanyanditscontrollingshareholder
√Applicable?Notapplicable
(II)InformationofactualcontrollerLegalperson?Applicable√NotapplicableNaturalperson
√Applicable?Notapplicable
| Name | MengQingshan |
| Nationality | Chinese |
| Whetheraresidentstatusinothercountriesorregionsisobtained | No |
| Majoroccupationandposition | HeservedasChairmanoftheCompanyfromMarch2009toJanuary2017. |
| Informationofanydomesticorforeignholding | None |
MengQingshan
MengQingshanMeihuaHoldingsGroupCo.,Ltd.
MeihuaHoldingsGroupCo.,Ltd.
29.94%
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listedcompanyduringthepast10years
| listedcompanyduringthepast10years | |
| Name | WangAijun |
| Nationality | Chinese |
| Whetheraresidentstatusinothercountriesorregionsisobtained | No |
| Majoroccupationandposition | ShehasservedasChairpersonoftheCompanysinceJanuary16,2017. |
| Informationofanydomesticorforeignholdinglistedcompanyduringthepast10years | None |
| Name | HeJun |
| Nationality | Chinese |
| Whetheraresidentstatusinothercountriesorregionsisobtained | No |
| Majoroccupationandposition | HeservedasDirectorandGeneralManageroftheCompanyfromJanuary16,2017asofnow. |
| Informationofanydomesticorforeignholdinglistedcompanyduringthepast10years | None |
3.ExplanationofcircumstancewheretheCompanydoesnothaveanactualcontroller?Applicable√Notapplicable
4.ExplanationofchangesintheCompany’scontrolduringtheReportingPeriod?Applicable√Notapplicable
5.DiagramofthepropertyrightandcontrolrelationshipbetweentheCompanyanditsactualcontroller
√Applicable?Notapplicable
6.ActualcontrollercontrollingtheCompanythroughtrustorotherassetmanagementmethods?Applicable√Notapplicable(III)Otherinformationofcontrollingshareholderandactualcontroller?Applicable√NotapplicableV.TotalnumberofpledgedsharesoftheCompany’scontrollingshareholderortopshareholderandthepersonsactinginconcertaccountingformorethan80%oftheCompany’stotalshares?Applicable√NotapplicableVI.Corporateshareholdersholdingmorethan10%oftheshares?Applicable√NotapplicableVII.Explanationofdecreaseofholdingofsharesduetosharerestrictions?Applicable√Notapplicable
MengQingshanandthepersonsactinginconcert
(MengQingshan,WangAijun,andHeJun)MeihuaHoldingsGroupCo.,Ltd.
MeihuaHoldingsGroupCo.,Ltd.
33.34%
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VIII.ImplementationofShareRepurchaseduringtheReportingPeriod
√Applicable?Notapplicable
Unit:yuanCurrency:RMB
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Nameofthesharerepurchaseplan
| Nameofthesharerepurchaseplan | ShareRepurchasePlanofMeihuaHoldingsGroupCo.,Ltd. |
| Disclosuredateofthesharerepurchaseplan | April10,2023 |
| Numberofsharesplannedtorepurchaseandtheproportioninthetotalshares(%) | 2.74 |
| Plannedamountofrepurchase | 800millionyuan-1billionyuan |
| PlannedDurationofRepurchase | Lessthan12monthsfromthedatetherepurchaseplanisapprovedattheCompany’sgeneralmeeting |
| Purposeofrepurchase | Cancellation-toreducetheregisteredcapital |
| Repurchasedquantity(share) | 90,637,352 |
| Proportionofrepurchasedsharesintheunderlyingsharesinvolvedintheshareincentiveplan(%)(ifapplicable) | Notapplicable |
| ProgressinReducingShareholdingThroughCentralizedBidding | Notapplicable |
Nameofthesharerepurchaseplan
| Nameofthesharerepurchaseplan | ShareRepurchasePlanofMeihuaHoldingsGroupCo.,Ltd. |
| Disclosuredateofthesharerepurchaseplan | September24,2024 |
| Numberofsharesplannedtorepurchaseandtheproportioninthetotalshares(%) | 1.20 |
| Plannedamountofrepurchase | 300millionyuanto500millionyuan |
| PlannedDurationofRepurchase | Lessthan12monthsfromthedatetherepurchaseplanisapprovedattheCompany’sgeneralmeeting |
| Purposeofrepurchase | Cancellation-toreducetheregisteredcapital |
| Repurchasedquantity(share) | 34,189,100 |
| Proportionofrepurchasedsharesintheunderlyingsharesinvolvedintheshareincentiveplan(%)(ifapplicable) | Notapplicable |
| ProgressinReducingShareholdingThroughCentralizedBidding | Notapplicable |
Section8InformationonPreferredShares
?Applicable√Notapplicable
Section9InformationonSecurities
I.CorporateBonds(includingEnterpriseBonds)andNon-FinancialCorporateDebtFinancingInstruments?Applicable√Notapplicable
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II.InformationofConvertibleDebentures?Applicable√Notapplicable
Section10FinancialReport
I.AuditReport
?Applicable□NotApplicable
ZDZYSZNo.2500014ToallshareholdersofMeihuaHoldingsGroupCo.,Ltd.:
I.AuditOpinionWehaveauditedthefinancialstatementsofMeihuaHoldingsGroupCo.,Ltd.(hereinafterreferredtoas"MeihuaBio"),includingtheconsolidatedandparentCompany’sbalancesheetsasofDecember31,2024,aswellastheconsolidatedandparentCompany’sincomestatements,theconsolidatedandparentCompany’scashflowstatements,theconsolidatedandparentCompany’sstatementofchangesinshareholders’equity,andrelatednotestothefinancialstatementsfortheyear2024.
WebelievethattheaccompanyingfinancialstatementshavebeenformulatedinaccordancewiththeAccountingStandardsforBusinessEnterprisesinallmaterialrespectsandpresentfairlytheconsolidatedandparentCompany’sfinancialpositionofMeihuaBioasofDecember31,2024,andtheconsolidatedandparentCompany’soperatingresultsandcashflowsfortheyear2024.
II.BasisforAuditOpinion
WeconductedourauditinaccordancewiththeprovisionsspecifiedintheAuditingStandardsforCertifiedPublicAccountantsofChina.Thesection"ResponsibilitiesofCertifiedPublicAccountantsfortheAuditofFinancialStatements"oftheauditreportfurtherexplainsourresponsibilitiesunderthesestandards.InaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,weareindependentofMeihuaBioandhavefulfilledourotherprofessionalethicsresponsibilities.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
III.KeyAuditMatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsforthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawholeandinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
Weidentifiedrevenuerecognitionasakeyauditmatterthatneededtobecommunicatedinourauditreport.
1.MatterDescription
MeihuaBioisprimarilyengagedintheproductionofaminoacidproducts,withoperatingrevenuefortheyear2024amountingtoRMB25,069,288,294.62.Foraccountingpoliciesrelatedtorevenue,
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pleaserefertoParagraph34RevenueofSub-SectionVofthisSection,andforthecarryingamountofoperatingrevenue,pleaserefertoParagraph61OperatingRevenueandOperatingCostsofSub-sectionVIIofthisSection.AsrevenueisoneofthekeyperformanceindicatorsforMeihuaBio,thereisinherentriskthattheCompany’smanagementmaymanipulaterevenuerecognitiontoachievespecifictargetsorexpectations.Therefore,weidentifiedrevenuerecognitionasakeyauditmatter.
2.AuditResponseKeyauditprocedureswe’vecarriedoutforrevenuerecognitioninclude:
(1)Understanding,assessing,andtestingthemanagement'sinternalcontrolovertherecognitionofoperatingrevenues;
(2)SelectingsamplestoexaminesalescontractsandconductinginterviewswiththemanagementtoidentifycontracttermsrelatedtothetransferofcontrolofgoodsandtoevaluatewhetherrevenuerecognitionpoliciescomplywiththeAccountingStandardsforBusinessEnterprises;
(3)Selectingsamplestoexaminesupportingdocumentsrelatedtotherecognitionofrevenuefromthemainbusinesses,includingsalescontracts,salesinvoices,shippingdocuments,exportcustomsdeclarationforms,andbankpaymentconnectionrecords,toassesswhetherrevenuerecognitioncomplieswiththeCompany'saccountingpoliciesforrevenuerecognition;
(4)Performingindependentconfirmationproceduresforsalesrevenuefromsignificantcustomerstoconfirmtheauthenticityandcompletenessofrevenue;
(5)Forsalesrevenuecutofftestingbeforeandafterthebalancesheetdate,selectsamplesand,inconjunctionwithgoodsshipmentorders,exportcustomsdeclarationforms,andothersupportingdocuments,evaluatewhethertherevenuehasbeenrecordedintheappropriateaccountingperiod.
(6)Conductingexaminationsofsalesrevenueafterthebalancesheetdatetoidentifywhetherthereareinstancesofrevenuereversalorsubstantialsalesreturns;
(7)Performsamplechecksonpost-periodpayments.
Basedontheauditworkconducted,webelievethatthemanagement’sjudgmentregardingrevenuerecognitionisreasonable.
IV．OtherInformation
ThemanagementofMeihuaBioisresponsibleforotherinformation.Otherinformationincludestheinformationincludedintheannualreportbutexcludesthefinancialstatementsandourauditreport.
Ourauditopiniononthefinancialstatementsdoesnotcoverotherinformation,andwedonotexpressanyformofassuranceconclusiononotherinformation.
Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditprocess,orappearstobemateriallymisstated.
Basedontheworkwehaveperformed,ifwedeterminethatthereisamaterialmisstatementofotherinformation,wearerequiredtoreportthatfact.Inthisregard,wehavenomatterstoreport.
V.ResponsibilitiesoftheManagementandGovernanceforFinancialStatements
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ThemanagementofMeihuaBioisresponsibleforpreparingfinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprisestoensurefairpresentation,andfordesigning,implementing,andmaintainingnecessaryinternalcontrolstopreventmaterialmisstatementsinthefinancialstatementsarisingfromfraudorerror.Inpreparingthefinancialstatements,themanagementofMeihuaBioisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcern(ifapplicable),andapplyingthegoingconcernassumptionunlessthemanagementintendstoliquidatetheCompany,ceaseoperations,orhasnorealisticalternative.ThegovernanceisresponsibleforoverseeingthefinancialreportingprocessofMeihuaBio.VI.ResponsibilitiesofCertifiedPublicAccountantsfortheAuditofFinancialStatementsOurobjectiveistoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatementsarisingfromfraudorerror,andtoissueanauditreportcontainingauditopinion.Reasonableassuranceisahighlevelofassurance,butitdoesnotguaranteethatanauditconductedinaccordancewiththeauditingstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromeitherfraudorerror,anditisreasonablyexpectedthatindividualoraggregatedmisstatementsmayaffecttheeconomicdecisionsmadebyusersbasedonthefinancialstatements,suchmisstatementsaregenerallyconsideredmaterial.
Duringtheauditinaccordancewiththeauditingstandards,weexerciseprofessionaljudgmentandmaintainprofessionalskepticism.Additionally,weperformthefollowingprocedures:
1.Identifyandassesstherisksofmaterialmisstatementofthefinancialstatementsduetofraudorerror,designandimplementauditprocedurestoaddresstheserisks,andobtainsufficientandappropriateauditevidenceasthebasisforourauditopinion.Theriskoffailingtodetectamaterialmisstatementduetofraudishigherthantheriskoffailingtodetectoneduetoerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,oroverrideofinternalcontrols.
2.Understandtheinternalcontrolsrelevanttotheauditinordertodesignappropriateauditprocedures.
3.Evaluatetheappropriatenessoftheaccountingpoliciesselectedbythemanagementandthereasonablenessofaccountingestimatesandrelateddisclosures.
4.Cometoaconclusionregardingtheappropriatenessofthemanagement'sutilizationofthegoingconcernassumption.Additionally,basedontheauditevidenceobtained,concludewhethersignificantuncertaintiesexistregardingmattersorconditionsthatmaycastsignificantdoubtontheCompany'sabilitytocontinueasagoingconcern.Ifweconcludethatthereisasignificantuncertainty,theauditingstandardsrequireustodrawattentiontousersofthereportinourauditreporttotherelevantdisclosuresinthefinancialstatements;ifthedisclosuresareinadequate,weshouldissueaqualifiedopinion.Wecometoourconclusionbasedoninformationavailableuptothedateofourauditreport.However,futureeventsorconditionsmayresultintheCompanybeingunabletocontinueasagoingconcern.
5.Evaluatetheoverallpresentation,structure,andcontentofthefinancialstatementsandwhethertheyfairlyreflecttherelevanttransactionsandevents.
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6.ObtainsufficientandappropriateauditevidenceregardingthefinancialinformationofMeihuaBio’sentitiesorbusinessactivitiestoexpressanopiniononthefinancialstatements.Weareresponsiblefordirecting,supervising,andperformingthegroupauditandbearfullresponsibilityfortheauditopinion.Wecommunicatewiththegovernanceaboutmattersrelatedtotheplannedscopeoftheaudit,timingschedule,andsignificantauditfindings,includingthecommunicationofsignificantinternalcontroldeficienciesidentifiedduringtheaudit.
Wealsoprovidethegovernancewithastatementregardingcompliancewithprofessionalethicsrequirementsrelatedtoindependenceandcommunicatetothegovernanceallrelationshipsandothermattersthatmightreasonablybeseenascompromisingourindependenceaswellasrelevantpreventivemeasures(ifapplicable).
Fromthematterscommunicatedwiththegovernance,wedeterminethosemattersthatareofmostsignificanceintheauditofthefinancialstatementsforthecurrentperiodandthereforeconstitutethekeyauditmatters.Wedescribethesemattersinourauditreportunlesslawsorregulationsprecludepublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedintheauditreportifdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
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Zandar(Shenzhen)CPAsLLP(SpecialGeneral
Partnership)
| Zandar(Shenzhen)CPAsLLP(SpecialGeneralPartnership) | ChineseCertifiedPublicAccountant: | |
| (ProjectPartner) | LiuQianqian | |
Shenzhen,China
| Shenzhen,China | ChineseCertifiedPublicAccountant: | |
| LiQianqian | ||
| March17,2025 | ||
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II.FinancialStatements
ConsolidatedBalanceSheet
December31,2024Preparedby:MeiHuaHoldingsGroupCo.,Ltd
Unit:YuanCurrency:RMB
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Items
| Items | Notes | December31,2024 | December31,2023 |
| CurrentAssets: | |||
| Monetaryassets | Note1 | 4,561,056,193.96 | 4,969,794,482.39 |
| Depositreservationforbalance | - | - | |
| Placementswithbanksandotherfinancialinstitutions | - | - | |
| Financialassetsheldfortrading | Note2 | 312,033,611.07 | 172,376,801.33 |
| Derivativefinancialassets | Note3 | 200,000.00 | |
| Notesreceivable | Note4 | 73,697,475.30 | 129,231,952.45 |
| Accountsreceivable | Note5 | 587,909,538.21 | 641,127,885.22 |
| ReceivablesFinancing | Note7 | 26,723,054.99 | 60,013,169.98 |
| Prepaidaccounts | Note8 | 220,000,861.75 | 252,089,088.23 |
| Premiumsreceivable | - | - | |
| Reinsuranceaccountsreceivable | - | - | |
| Reinsurancecontractreservesreceivable | - | - | |
| Otherreceivables | Note9 | 49,292,999.56 | 51,384,535.97 |
| Including:Interestreceivable | 1,575,000.00 | 1,575,000.00 | |
| Dividendreceivable | 1,395,866.49 | ||
| Financialassetspurchasedunderagreementstoresell | |||
| Inventories | Note10 | 2,722,279,908.07 | 2,922,518,782.97 |
| Amongthem:Dataresources | |||
| Contractassets | - | - | |
| Assetsheldforsale | - | - | |
| Non-currentassetsduewithinoneyear | Note12 | 182,257,027.81 | 19,356,000.00 |
| Othercurrentassets | Note13 | 164,629,398.67 | 289,218,469.96 |
| TotalCurrentAssets | 8,899,880,069.39 | 9,507,311,168.50 | |
| Non-currentAssets: | |||
| Loansandadvances | |||
| Debtinvestments | Note14 | 10,500,000.00 | 10,500,000.00 |
| Otherdebtinvestments | - | - | |
| Long-termreceivables | Note16 | 601,043.91 | 364,927.03 |
| Long-termequityinvestments | Note17 | 6,874,939.88 | 18,942,230.64 |
| Investmentsinotherequityinstruments | Note18 | 441,294,280.00 | 512,691,350.00 |
| Othernon-currentfinancialassets | - | - | |
| Investmentproperties | - | - | |
| Fixedassets | Note21 | 11,338,208,623.56 | 11,428,700,356.22 |
| Constructioninprogress | Note22 | 728,524,141.54 | 161,961,713.29 |
| Productivebiologicalassets | - | - | |
| Oilandgasassets | - | - | |
| Right-of-useassets | Note25 | 8,145,892.35 | 9,633,644.09 |
| Intangibleassets | Note26 | 1,356,812,266.82 | 1,075,943,303.26 |
| Amongthem:Dataresources | |||
| Developmentexpenditure | - | - | |
| Amongthem:Dataresources | |||
| Goodwill | Note27 | 11,788,911.79 | 11,788,911.79 |
| Long-termprepaidexpenses | Note28 | 122,538,549.51 | 104,076,824.93 |
| Deferredincometaxassets | Note29 | 101,814,807.93 | 106,143,010.15 |
| Othernon-currentassets | Note30 | 782,574,484.98 | 209,122,415.35 |
| TotalNon-currentAssets | 14,909,677,942.27 | 13,649,868,686.75 | |
| TotalAssets | 23,809,558,011.66 | 23,157,179,855.25 | |
| CurrentLiabilities: | |||
| Short-termborrowings | Note32 | 1,734,832,631.06 | 1,543,869,058.69 |
| Borrowingsfromcentralbank | |||
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Borrowingsfrombanksandotherfinancialinstitutions
| Borrowingsfrombanksandotherfinancialinstitutions | |||
| Financialliabilitiesheldfortrading | - | - | |
| Derivativefinancialliabilities | Note34 | 297,500.00 | 250,000.00 |
| Notespayable | Note35 | 1,416,217,579.96 | 1,183,031,652.44 |
| Accountspayable | Note36 | 1,441,533,026.72 | 1,425,597,196.27 |
| Advancesfromcustomers | - | - | |
| Contractliabilities | Note38 | 916,515,321.35 | 892,931,047.76 |
| Financialassetssoldforrepurchase | |||
| Depositsfromcustomersandinterbank | |||
| Customerbrokeragedeposits | |||
| Securitiesunderwritingbrokeragedeposits | |||
| Employeebenefitspayable | Note39 | 310,133,688.99 | 322,959,640.35 |
| Taxespayable | Note40 | 280,212,685.60 | 256,472,526.55 |
| Otherpayables | Note41 | 448,115,137.98 | 249,853,910.40 |
| Including:Interestpayable | - | - | |
| Dividendspayable | 409,445.58 | 405,000.00 | |
| Handlingchargesandcommissionspayable | |||
| Dividendpayableforreinsurance | |||
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | Note43 | 802,346,793.78 | 535,085,272.76 |
| Othercurrentliabilities | Note44 | 88,785,123.74 | 118,688,728.75 |
| TotalCurrentLiabilities | 7,438,989,489.18 | 6,528,739,033.97 | |
| Non-currentLiabilities: | |||
| Insurancecontractreserves | |||
| Long-termborrowings | Note45 | 1,348,094,044.83 | 1,999,963,021.77 |
| Bondspayable | - | - | |
| Including:Preferredshares | - | - | |
| Perpetualbonds | - | - | |
| Leaseliabilities | Note47 | 1,985,140.84 | 2,590,305.92 |
| Long-termpayables | Note48 | 10,500,000.00 | 10,500,000.00 |
| Long-termemployeebenefitspayable | - | - | |
| Estimatedliabilities | Note50 | 32,438,161.92 | 45,888,616.17 |
| Deferredincome | Note51 | 381,020,645.51 | 384,988,414.73 |
| Deferredincometaxliabilities | Note29 | 21,585,228.45 | 21,495,649.02 |
| Othernon-currentliabilities | Note52 | - | - |
| TotalNon-currentLiabilities | 1,795,623,221.55 | 2,465,426,007.61 | |
| TotalLiabilities | 9,234,612,710.73 | 8,994,165,041.58 | |
| Owners'Equity(Shareholders'Equity): | |||
| Paid-incapital(orstock) | Note53 | 2,852,788,750.00 | 2,943,426,102.00 |
| Otherequityinstruments | - | - | |
| Including:Preferredshares | - | - | |
| Perpetualbonds | - | - | |
| Capitalreserves | Note55 | 263,154,867.05 | 1,032,707,760.40 |
| Less:Treasurystock | Note56 | 287,771,455.80 | 576,775,719.27 |
| Othercomprehensiveincome | Note57 | -55,004,961.46 | 5,687,647.50 |
| Specialreserves | Note58 | 4,743,615.67 | 3,952,446.88 |
| Surplusreserves | Note59 | 1,426,394,375.00 | 1,326,294,444.30 |
| Generalriskreserves | - | - | |
| Undistributedprofits | Note60 | 10,370,640,110.47 | 9,427,722,131.86 |
| TotalOwners'Equity(orShareholders'Equity)AttributabletotheParentCompany | 14,574,945,300.93 | 14,163,014,813.67 | |
| Minoritystockholder'sinterest | - | - | |
| TotalOwners'Equity(orShareholders'Equity) | 14,574,945,300.93 | 14,163,014,813.67 | |
| TotalLiabilitiesandOwners'Equity(orShareholders'Equity) | 23,809,558,011.66 | 23,157,179,855.25 | |
HeadoftheCompany:WangAijunHeadofAccounting:WangLihongHeadoftheAccountingInstitution:WangAiling
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ParentCompany’sBalanceSheet
December31,2024Preparedby:MeiHuaHoldingsGroupCo.,Ltd
Unit:YuanCurrency:RMB
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Items
| Items | Notes | December31,2024 | December31,2023 |
| CurrentAssets: | |||
| Monetaryassets | 1,543,851,627.94 | 2,645,832,017.55 | |
| Financialassetsheldfortrading | 50,491,712.32 | ||
| Derivativefinancialassets | - | - | |
| Notesreceivable | 73,047,475.30 | 129,231,952.45 | |
| Accountsreceivable | Note1 | 162,553,781.77 | 166,039,222.60 |
| ReceivablesFinancing | 26,575,904.82 | 58,499,269.30 | |
| Prepaidaccounts | 475,357.88 | 5,204,039.16 | |
| Otherreceivables | Note2 | 1,665,966,380.53 | 1,727,988,609.74 |
| Including:Interestreceivable | - | - | |
| Dividendreceivable | 1,000,000,000.00 | 1,230,000,000.00 | |
| Inventories | 65,050,433.21 | 99,282,226.40 | |
| Amongthem:Dataresources | |||
| Contractassets | - | - | |
| Assetsheldforsale | - | - | |
| Non-currentassetsduewithinoneyear | 107,257,777.78 | ||
| Othercurrentassets | 64,765,249.83 | 20,849,368.61 | |
| TotalCurrentAssets | 3,760,035,701.38 | 4,852,926,705.81 | |
| Non-currentAssets: | |||
| Debtinvestments | - | - | |
| Otherdebtinvestments | - | - | |
| Long-termreceivables | 849,764,271.75 | 1,289,997,831.50 | |
| Long-termequityinvestments | Note3 | 7,637,915,728.14 | 7,637,850,728.14 |
| Investmentsinotherequityinstruments | 157,000,000.00 | 157,000,000.00 | |
| Othernon-currentfinancialassets | - | - | |
| Investmentproperties | - | - | |
| Fixedassets | 220,263,004.92 | 134,003,097.45 | |
| Constructioninprogress | 1,158,006.34 | 32,442,084.70 | |
| Productivebiologicalassets | - | - | |
| Oilandgasassets | - | - | |
| Right-of-useassets | 5,683,180.01 | 9,633,644.09 | |
| Intangibleassets | 29,657,849.39 | 37,969,368.52 | |
| Amongthem:Dataresources | |||
| Developmentexpenditure | - | - | |
| Amongthem:Dataresources | |||
| Goodwill | - | - | |
| Long-termprepaidexpenses | 7,442,964.64 | 8,469,060.83 | |
| Deferredincometaxassets | 24,003,415.50 | 38,096,333.83 | |
| Othernon-currentassets | 477,168,855.60 | 131,863,080.38 | |
| TotalNon-currentAssets | 9,410,057,276.29 | 9,477,325,229.44 | |
| TotalAssets | 13,170,092,977.67 | 14,330,251,935.25 | |
| CurrentLiabilities: | |||
| Short-termborrowings | 946,819,589.89 | 918,219,847.24 | |
| Financialliabilitiesheldfortrading | - | - | |
| Derivativefinancialliabilities | - | - | |
| Notespayable | 1,801,200,152.53 | 1,015,696,430.02 | |
| Accountspayable | 1,546,027,555.51 | 2,458,377,219.77 | |
| Advancesfromcustomers | - | - | |
| Contractliabilities | 686,582,514.27 | 604,109,374.58 | |
| Employeebenefitspayable | 122,576,747.39 | 165,424,073.35 | |
| Taxespayable | 17,341,488.83 | 72,309,045.89 | |
| Otherpayables | 94,683,082.66 | 87,758,510.82 | |
| Including:Interestpayable | - | - | |
| Dividendspayable | 409,445.58 | 405,000.00 | |
| Liabilitiesheldforsale | - | - | |
| Non-currentliabilitiesduewithinoneyear | 468,965,560.37 | 226,685,272.76 | |
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Othercurrentliabilities
| Othercurrentliabilities | 147,284,751.55 | 198,067,506.25 | |
| TotalCurrentLiabilities | 5,831,481,443.00 | 5,746,647,280.68 | |
| Non-currentLiabilities: | |||
| Long-termborrowings | 504,900,000.00 | 1,063,961,000.00 | |
| Bondspayable | - | - | |
| Including:Preferredshares | - | - | |
| Perpetualbonds | - | - | |
| Leaseliabilities | 459,482.24 | 2,590,305.92 | |
| Long-termpayables | - | - | |
| Long-termemployeebenefitspayable | - | - | |
| Estimatedliabilities | - | - | |
| Deferredincome | - | - | |
| Deferredincometaxliabilities | 833,818.64 | 3,575,298.08 | |
| Othernon-currentliabilities | - | - | |
| TotalNon-currentLiabilities | 506,193,300.88 | 1,070,126,604.00 | |
| TotalLiabilities | 6,337,674,743.88 | 6,816,773,884.68 | |
| Owners'Equity(Shareholders'Equity): | |||
| Paid-incapital(orstock) | 2,852,788,750.00 | 2,943,426,102.00 | |
| Otherequityinstruments | - | - | |
| Including:Preferredshares | - | - | |
| Perpetualbonds | - | - | |
| Capitalreserves | 229,404,999.46 | 998,957,892.81 | |
| Minus:Treasurystock | 287,771,455.80 | 576,775,719.27 | |
| Othercomprehensiveincome | |||
| Specialreserves | - | - | |
| Surplusreserves | 1,426,394,375.00 | 1,326,294,444.30 | |
| Undistributedprofits | 2,611,601,565.13 | 2,821,575,330.73 | |
| TotalOwners'Equity(orShareholders'Equity) | 6,832,418,233.79 | 7,513,478,050.57 | |
| TotalLiabilitiesandOwners'Equity(orShareholders'Equity) | 13,170,092,977.67 | 14,330,251,935.25 | |
HeadoftheCompany:WangAijunHeadofAccounting:WangLihongHeadoftheAccountingInstitution:WangAiling
ConsolidatedIncomeStatement
JanuarytoDecember2024
Unit:YuanCurrency:RMB
| Items | Notes | 2024 | 2023 |
| I.TotalOperatingRevenue | 25,069,288,294.62 | 27,760,612,259.07 | |
| Including:Operatingrevenue | Note61 | 25,069,288,294.62 | 27,760,612,259.07 |
| Interestrevenue | |||
| Earnedpremiums | |||
| Handlingchargesandcommissionrevenue | |||
| II.TotalOperatingCosts | 21,862,599,657.62 | 24,158,622,972.00 | |
| Including:OperatingCosts | Note61 | 20,036,698,814.74 | 22,297,122,025.25 |
| InterestExpenses | |||
| Handlingchargesandcommissionexpenses | |||
| Surrendervalue | |||
| Netclaimpaid | |||
| Netprovisionofinsurancereserve | |||
| Policydividendspaid | |||
| Reinsuranceexpenses | |||
| Taxesandsurcharges | Note62 | 235,462,799.84 | 242,593,736.35 |
| Salesexpenses | Note63 | 386,866,509.47 | 413,512,921.96 |
| Administrativeexpenses | Note64 | 937,932,200.19 | 924,598,280.87 |
| Researchanddevelopmentexpenses | Note65 | 382,903,265.05 | 314,222,682.89 |
| Financingexpenses | Note66 | -117,263,931.67 | -33,426,675.32 |
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Including:Interestexpenses
| Including:Interestexpenses | 80,472,368.46 | 115,220,289.90 | |
| Interestrevenue | 97,971,379.97 | 118,865,910.23 | |
| Plus:Otherrevenues | Note67 | 242,640,414.38 | 248,461,028.47 |
| Investmentgains("-"forloss) | Note68 | 30,193,009.09 | 7,627,189.35 |
| Including:Investmentgainsfromassociatesandjointventures | -3,018,027.22 | 1,845,935.98 | |
| Gainsfromderecognitionoffinancialassetsmeasuredatamortizedcost | - | - | |
| Exchangegains("-"forloss) | - | - | |
| Netexposurehedginggains(Lossindicatedby"-") | - | - | |
| Gainsfromchangesinfairvalue("-"forloss) | Note70 | 14,826,169.53 | -38,116,002.85 |
| Creditimpairmentlosses("-"forloss) | Note71 | 3,888,525.41 | -5,225,785.54 |
| Assetimpairmentlosses("-"forloss) | Note72 | -6,981,927.26 | -5,415,349.06 |
| Assetdisposalgains("-"forloss) | Note73 | 29,968.32 | 4,073,026.92 |
| III.OperatingProfit("-"forloss) | 3,491,284,796.47 | 3,813,393,394.36 | |
| Plus:Non-operatingrevenue | Note74 | 140,787,996.42 | 10,357,039.99 |
| Minus:Non-operatingexpenses | Note75 | 282,612,101.76 | 100,614,814.20 |
| IV.TotalProfit("-"fortotalloss) | 3,349,460,691.13 | 3,723,135,620.15 | |
| Minus:Incometaxexpenses | Note76 | 609,033,475.57 | 542,185,924.67 |
| V.NetProfit("-"fornetloss) | 2,740,427,215.56 | 3,180,949,695.48 | |
| (I)ClassifiedbyOperatingContinuity | |||
| 1.Netprofitfromcontinuingoperations("-"fornetloss) | 2,740,427,215.56 | 3,180,949,695.48 | |
| 2.Netprofitfromdiscontinuedoperations("-"fornetloss) | |||
| (II)ClassifiedbyOwnership | |||
| 1.NetprofitattributabletoshareholdersoftheParentCompany("-"fornetloss) | 2,740,427,215.56 | 3,180,949,695.48 | |
| 2.Profitorlossattributabletominorityshareholders("-"fornetloss) | |||
| VI.NetAfter-taxAmountofOtherComprehensiveIncome | -60,692,608.96 | -535,384,994.54 | |
| (I)NetAfter-taxAmountofOtherComprehensiveIncomeAttributabletoOwnersoftheParentCompany | -60,692,608.96 | -535,384,994.54 | |
| 1．Othercomprehensiveincomenotreclassifiedtoprofitorloss | -60,687,509.50 | -529,805,827.49 | |
| (1)Changesinthedefinedbenefitplanafterremeasurement | |||
| (2)OthercomprehensiveincomeunderEquityMethodthatcannotbereclassifiedtoprofitorloss | |||
| (3)Changesinfairvalueofotherequityinstrumentinvestments | -60,687,509.50 | -529,805,827.49 | |
| (4)Changesinfairvalueduetoenterprise'sowncreditrisks | |||
| 2Othercomprehensiveincometobereclassifiedtoprofitorloss | -5,099.46 | -5,579,167.05 | |
| (1)OthercomprehensiveincomeunderEquityMethodthatcanbereclassifiedtoprofitorloss | - | - | |
| (2)Changesinfairvalueofotherdebtinvestments | - | - | |
| (3)Amountoffinancialassetsreclassifiedtoothercomprehensiveincome | - | - | |
| (4)Creditimpairmentreservesotherdebtinvestments | - | - | |
| (5)Cashflowhedgereserve | - | - | |
| (6)Converteddifferenceinforeigncurrencystatements | -5,099.46 | ||
| (7)Others | -5,579,167.05 | ||
| (II)NetAfter-taxAmountofOtherComprehensiveIncomeAttributabletoMinorityShareholders | |||
| VII.TotalComprehensiveIncome | 2,679,734,606.60 | 2,645,564,700.94 | |
| (I)TotalComprehensiveIncomeAttributabletoOwnersoftheParentCompany | 2,679,734,606.60 | 2,645,564,700.94 | |
| (II)TotalComprehensiveIncomeAttributableto | |||
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MinorityShareholders
| MinorityShareholders | |||
| VIII.EarningsperShare: | |||
| (I)BasicEarningsperShare(Yuan/share) | 0.94 | 1.06 | |
| (II)DilutedEarningsperShare(Yuan/share) | 0.94 | 1.06 | |
Forthecurrentperiod,incasesofmergerofenterprisesunderthesamecontrol,thenetprofitrealizedbythemergedentitypriortothemergeris:RMB0yuan,andthenetprofitrealizedbythemergedentityinthepreviousperiodis:RMB0yuan.HeadoftheCompany:WangAijunHeadofAccounting:WangLihongHeadoftheAccountingInstitution:WangAiling
ParentCompany’sIncomeStatement
JanuarytoDecember2024
Unit:YuanCurrency:RMB
| Items | Notes | 2024 | 2023 |
| I.OperatingRevenue | Note4 | 16,291,387,822.55 | 18,919,490,981.95 |
| Minus:Operatingcosts | Note4 | 15,714,980,693.14 | 18,389,994,122.42 |
| Taxesandsurcharges | 25,336,810.64 | 24,154,909.06 | |
| Salesexpenses | 176,339,627.80 | 195,496,971.28 | |
| Administrativeexpenses | 374,185,652.31 | 398,322,560.12 | |
| ResearchanddevelopmentExpenses | - | - | |
| Financingexpenses | -15,825,243.09 | -41,298,204.55 | |
| Including:Interestexpenses | 10,704,676.75 | 11,342,280.65 | |
| Interestrevenue | 29,784,524.35 | 57,734,925.08 | |
| Plus:Otherrevenues | 125,717,916.13 | 162,071,891.14 | |
| Investmentgains("-"forloss) | Note5 | 1,521,253,767.67 | 1,742,971,064.95 |
| Including:Investmentgainsfromassociatesandjointventures | - | - | |
| Gainsfromderecognitionoffinancialassetsmeasuredatamortizedcost | - | - | |
| Netexposurehedginggains("-"forloss) | - | - | |
| Gainsfromchangesinfairvalue("-"forloss) | 3,570,120.85 | 5,465,622.36 | |
| Creditimpairmentlosses("-"forloss) | 595,937.23 | 4,628,141.89 | |
| Assetimpairmentlosses("-"forloss) | - | - | |
| Assetdisposalgains("-"forloss) | 381,719.13 | 1,478,236.80 | |
| II.OperatingProfit("-"forloss) | 1,667,889,742.76 | 1,869,435,580.76 | |
| Plus:Non-operatingrevenue | 621,667.62 | 411,160.99 | |
| Minus:Non-operatingexpenses | 4,614,545.40 | 3,761,852.18 | |
| III.TotalProfit("-"fortotalloss) | 1,663,896,864.98 | 1,866,084,889.57 | |
| Minus:Incometaxexpenses | 76,361,393.63 | 28,185,979.24 | |
| IV.NetProfit("-"fortotalloss) | 1,587,535,471.35 | 1,837,898,910.33 | |
| (I)Netprofitfromcontinuingoperations("-"fornetloss) | 1,587,535,471.35 | 1,837,898,910.33 | |
| (II)Netprofitfromdiscontinuedoperations("-"fornetloss) | |||
| V.NetAfter-taxAmountofOtherComprehensiveIncome | -243,628.56 | ||
| (I)Othercomprehensiveincomethatcannotreclassifiedtoprofitorloss | - | - | |
| 1.Changesinthedefinedbenefitplanafterremeasurement | - | - | |
| 2.OthercomprehensiveincomeunderEquityMethodthatcannotbereclassifiedtoprofitorloss | - | - | |
| 3.Changesinfairvalueofotherequityinstrumentinvestments | - | - | |
| 4.Changesinfairvalueduetoenterprise'sowncreditrisks | - | - | |
| (II)Othercomprehensiveincometobereclassifiedtoprofitorloss | -243,628.56 | ||
| 1.OthercomprehensiveincomeunderEquityMethodthatcanbereclassifiedtoprofitorloss | - | - |
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2.Changesinfairvalueofotherdebtinvestments
| 2.Changesinfairvalueofotherdebtinvestments | - | - | |
| 3.Amountoffinancialassetsreclassifiedtoothercomprehensiveincome | - | - | |
| 4.Creditimpairmentreservesforotherdebtinvestments | - | - | |
| 5.Cashflowhedgereserve | - | - | |
| 6.Converteddifferenceinforeigncurrencystatements | - | - | |
| 7.Others | -243,628.56 | ||
| VI.TotalComprehensiveIncome | 1,587,535,471.35 | 1,837,655,281.77 | |
| VII.EarningsperShare: | |||
| (I)BasicEarningsperShare(Yuan/share) | |||
| (II)DilutedEarningsperShare(Yuan/share) | |||
HeadoftheCompany:WangAijunHeadofAccounting:WangLihongHeadoftheAccountingInstitution:WangAiling
ConsolidatedCashFlowStatement
JanuarytoDecember2024
Unit:YuanCurrency:RMB
| Items | Notes | 2024 | 2023 |
| I.CashFlowfromOperatingActivities | |||
| Cashreceivedfromsalesofgoodsorrenderingofservices | 27,266,900,172.11 | 29,091,346,599.25 | |
| Netincreaseincustomerbankdepositsandduetobanksandotherfinancialinstitutions | - | - | |
| Netincreaseinborrowingsfromthecentralbank | - | - | |
| Netincreaseinfundsborrowedfromotherfinancialinstitutions | - | - | |
| Cashreceivedfrompremiumsonoriginalinsurancecontracts | - | - | |
| Netcashreceivedfromreinsurancebusiness | - | - | |
| Netincreaseindepositsandinvestmentsfrominsurers | - | - | |
| Cashreceivedfrominterest,handlingchargesandcommissions | - | - | |
| Netincreaseinborrowedfunds | - | - | |
| Netincreaseinrepurchasebusinessfunds | - | - | |
| Netcashreceivedfromsecuritiestradingbrokeragebusiness | - | - | |
| Refundsoftaxesreceived | 590,412,944.20 | 598,220,147.30 | |
| Othercashreceivedrelatedtooperatingactivities | Note78 | 448,943,253.14 | 343,744,773.05 |
| Subtotalcashinflowsfromoperatingactivities | 28,306,256,369.45 | 30,033,311,519.60 | |
| Cashpaidforgoodsandservices | 20,140,823,405.60 | 21,211,308,539.84 | |
| Netincreaseinloansandadvancestocustomers | - | - | |
| Netincreaseinplacementswithcentralbankandduetobanks | - | - | |
| Cashpaidforclaimsfororiginalinsurancecontracts | - | - | |
| Netincreaseinfundslent | - | - | |
| Cashpaidforinterest,handlingchargesandcommissions | - | - | |
| Cashpaidforpolicydividends | - | - | |
| Cashpaidtoandonbehalfofemployees | 1,968,598,894.60 | 1,780,261,966.43 | |
| Varioustaxespaid | 859,863,649.52 | 1,131,976,118.37 | |
| Othercashpaidrelatedtooperatingactivities | Note78 | 710,255,629.26 | 680,827,810.08 |
| Subtotalcashoutflowsfromoperatingactivities | 23,679,541,578.98 | 24,804,374,434.72 | |
| Netcashflowfromoperatingactivities | 4,626,714,790.47 | 5,228,937,084.88 | |
| II.CashFlowfromInvestingActivities | |||
| Cashreceivedfromrecoveryofinvestments | 190,804,566.68 | 88,628,666.67 | |
| Cashreceivedfrominvestmentincome | 51,309,310.71 | 31,215,210.80 | |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 3,487,009.20 | 4,600,429.92 | |
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | - | - | |
| Othercashreceivedrelatedtoinvestingactivities | Note78 | - | - |
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Subtotalcashinflowsfrominvestingactivities
| Subtotalcashinflowsfrominvestingactivities | 245,600,886.59 | 124,444,307.39 | |
| Cashpaidforacquisitionandconstructionoffixedassets,intangibleassets,andotherlong-termassets | 2,004,423,105.69 | 1,333,258,499.81 | |
| Cashpaidforinvestments | 881,089,058.61 | 266,053,482.02 | |
| Netincreaseinpledgeloans | - | - | |
| Netcashpaidforacquisitionofsubsidiariesandotherbusinessunits | - | - | |
| Othercashpaidrelatedtoinvestingactivities | Note78 | 9,047,530.00 | 34,278,559.79 |
| Subtotalcashoutflowsfrominvestingactivities | 2,894,559,694.30 | 1,633,590,541.62 | |
| Netcashflowfrominvestingactivities | -2,648,958,807.71 | -1,509,146,234.23 | |
| III.CashFlowfromFinancingActivities | |||
| Cashreceivedfromcapitalinjections | - | - | |
| Including:cashreceivedfromminorityshareholders'investmentsofsubsidiaries | - | - | |
| Cashreceivedfromborrowings | 6,297,183,657.37 | 4,065,122,989.15 | |
| Othercashreceivedrelatedtofinancingactivities | Note78 | 389,646,523.23 | 441,674,397.67 |
| Subtotalcashinflowsfromfinancingactivities | 6,686,830,180.60 | 4,506,797,386.82 | |
| Cashpaidfordebtrepayment | 6,411,943,930.69 | 4,984,013,700.00 | |
| Cashpaidfordistributionofdividends,profitsorinterestrepayment | 1,789,239,618.91 | 1,325,273,487.51 | |
| Including:Dividendsorprofitspaidtominorityshareholdersbysubsidiaries | - | - | |
| Othercashpaidrelatedtofinancingactivities | Note78 | 1,223,698,914.69 | 1,305,607,391.48 |
| Subtotalcashoutflowsfromfinancingactivities | 9,424,882,464.29 | 7,614,894,578.99 | |
| Netcashflowfromfinancingactivities | -2,738,052,283.69 | -3,108,097,192.17 | |
| IV.EffectofExchangeRateChangesonCashandCashEquivalents | 111,541,460.34 | 40,121,088.53 | |
| V.NetIncreaseinCashandCashEquivalents | -648,754,840.59 | 651,814,747.01 | |
| Plus:Beginningbalanceofcashandcashequivalents | 4,780,614,442.73 | 4,128,799,695.72 | |
| VI.EndingBalanceofCashandCashEquivalents | 4,131,859,602.14 | 4,780,614,442.73 | |
HeadoftheCompany:WangAijunHeadofAccounting:WangLihongHeadoftheAccountingInstitution:WangAiling
ParentCompany’sCashFlowStatement
JanuarytoDecember2024
Unit:YuanCurrency:RMB
| Items | Notes | 2024 | 2023 |
| I.CashFlowfromOperatingActivities: | |||
| Cashreceivedfromsalesofgoodsorrenderingofservices | 17,686,938,141.73 | 20,090,046,833.31 | |
| Refundsoftaxesreceived | 36,593,937.03 | 63,342,809.62 | |
| Othercashreceivedrelatedtooperatingactivities | 216,045,756.78 | 964,120,633.59 | |
| Subtotalcashinflowsfromoperatingactivities | 17,939,577,835.54 | 21,117,510,276.52 | |
| Cashpaidforgoodsandservices | 14,784,566,567.52 | 16,803,682,337.39 | |
| Cashpaidtoandonbehalfofemployees | 419,301,417.00 | 334,818,484.66 | |
| Varioustaxespaid | 159,164,187.36 | 168,669,190.85 | |
| Othercashpaidrelatedtooperatingactivities | 275,914,746.78 | 1,920,048,159.29 | |
| Subtotalcashoutflowsfromoperatingactivities | 15,638,946,918.66 | 19,227,218,172.19 | |
| Netcashflowfromoperatingactivities | 2,300,630,916.88 | 1,890,292,104.33 | |
| II.CashFlowfromInvestingActivities: | |||
| Cashreceivedfromrecoveryofinvestments | - | - | |
| Cashreceivedfrominvestmentincome | 1,741,708,681.75 | 1,415,342,664.72 | |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 732,576.80 | 38,347.42 | |
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | - | - | |
| Othercashreceivedrelatedtoinvestingactivities | - | - | |
| Subtotalcashinflowsfrominvestingactivities | 1,742,441,258.55 | 1,415,381,012.14 | |
| Cashpaidforacquisitionandconstructionoffixedassets,intangibleassets,andotherlong-termassets | 85,083,195.84 | 46,443,046.89 | |
| Cashpaidforinvestments | 543,499,005.03 | 498,644,666.66 | |
| Netcashpaidforacquisitionofsubsidiariesandother | - | - | |
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businessunits
| businessunits | |||
| Othercashpaidrelatedtoinvestingactivities | - | - | |
| Subtotalcashoutflowsfrominvestingactivities | 628,582,200.87 | 545,087,713.55 | |
| Netcashflowfrominvestingactivities | 1,113,859,057.68 | 870,293,298.59 | |
| III.CashFlowfromFinancingActivities: | |||
| Cashreceivedfromcapitalinjections | - | - | |
| Cashreceivedfromborrowings | 1,159,457,970.00 | 1,395,000,000.00 | |
| Othercashreceivedrelatedtofinancingactivities | 2,521,477,694.21 | 4,313,903,940.13 | |
| Subtotalcashinflowsfromfinancingactivities | 3,680,935,664.21 | 5,708,903,940.13 | |
| Cashpaidfordebtrepayment | 3,650,035,500.00 | 2,771,354,500.00 | |
| Cashpaidfordistributionofdividends,profitsorinterestrepayment | 1,745,904,818.03 | 1,260,995,005.10 | |
| Othercashpaidrelatedtofinancingactivities | 3,075,876,525.63 | 3,493,971,399.61 | |
| Subtotalcashoutflowsfromfinancingactivities | 8,471,816,843.66 | 7,526,320,904.71 | |
| Subtotalcashoutflowsfromfinancingactivities | -4,790,881,179.45 | -1,817,416,964.58 | |
| IV.EffectofExchangeRateChangesonCashandCashEquivalents | 2,418,952.54 | 464,418.27 | |
| V.NetIncreaseinCashandCashEquivalents | -1,373,972,252.35 | 943,632,856.61 | |
| Plus:Beginningbalanceofcashandcashequivalents | 2,489,308,668.36 | 1,545,675,811.75 | |
| VI.EndingBalanceofCashandCashEquivalents | 1,115,336,416.01 | 2,489,308,668.36 | |
HeadoftheCompany:WangAijunHeadofAccounting:WangLihongHeadoftheAccountingInstitution:WangAiling
ConsolidatedStatementofChangesinOwner'sEquity
JanuarytoDecember2024
Unit:YuanCurrency:RMB
MeihuaHoldingsGroupCo.,Ltd.–AnnualReport2024Items
| Items | 2024 | ||||||||||||||
| EquityAttributabletoOwnersoftheParentCompany | EquityofMinorityShareholders | TotalOwners’Equity | |||||||||||||
| Paid-inCapital(orstock) | OtherEquityInstruments | CapitalReserve | Minus:TreasuryStock | OtherComprehensiveIncome | SpecialReserve | SurplusReserve | Genera;RiskReserve | UndistributedProfits | Others | Subtotal | |||||
| PreferredShares | PerpetualBonds | Others | |||||||||||||
| I.BalanceatEndofLastYear | 2,943,426,102.00 | 1,032,707,760.40 | 576,775,719.27 | 5,687,647.50 | 3,952,446.88 | 1,326,294,444.30 | 9,427,722,131.86 | 14,163,014,813.67 | 14,163,014,813.67 | ||||||
| Plus:Changesinaccountingpolicies | |||||||||||||||
| Correctionofpriorperioderrors | |||||||||||||||
| Others | |||||||||||||||
| II.BalanceatBeginningoftheCurrentYear | 2,943,426,102.00 | - | - | - | 1,032,707,760.40 | 576,775,719.27 | 5,687,647.50 | 3,952,446.88 | 1,326,294,444.30 | - | 9,427,722,131.86 | 14,163,014,813.67 | 14,163,014,813.67 | ||
| III.TheAmountChangesduringtheCurrentPeriod("-"fordecrease) | -90,637,352.00 | -769,552,893.35 | -289,004,263.47 | -60,692,608.96 | 791,168.79 | 100,099,930.70 | 942,917,978.61 | 411,930,487.26 | 411,930,487.26 | ||||||
| (I)TotalComprehensiveIncome | -60,692,608.96 | 2,740,427,215.56 | 2,679,734,606.60 | 2,679,734,606.60 | |||||||||||
| (II)Owners'ContributionsandDecreaseofCapital | -90,637,352.00 | -769,552,893.35 | -289,004,263.47 | -571,185,981.88 | -571,185,981.88 | ||||||||||
| 1．Ordinarysharescontributedbyowners | - | ||||||||||||||
| 2．Capitalcontributedbyholdersofotherequipmentinstruments | - | ||||||||||||||
| 3．Amountofshare-basedpaymentsrecognizedinowners'equity | |||||||||||||||
| 4．Others | -90,637,352.00 | -769,552,893.35 | -289,004,263.47 | -571,185,981.88 | -571,185,981.88 | ||||||||||
| (III)ProfitDistribution | 100,099,930.70 | -1,797,509,236.95 | -1,697,409,306.25 | -1,697,409,306.25 | |||||||||||
| 1．Withdrawalofsurplusreserve | 100,099,930.70 | -100,099,930.70 | |||||||||||||
| 2．WithdrawalofGeneralRiskReserve | |||||||||||||||
| 3．DistributiontoOwners(orShareholders) | -1,697,409,306.25 | -1,697,409,306.25 | -1,697,409,306.25 | ||||||||||||
| 4．Others | |||||||||||||||
| (IV)InternalTransferofOwners'Equity | |||||||||||||||
| 1．Capital(orstock)increasedbycapitalreservetransfer | |||||||||||||||
| 2．Capital(orstock)increasedbysurplusreservetransfer | |||||||||||||||
| 3．Transferofsurplusreservetooffsetlosses | |||||||||||||||
| 4．Transferofchangesindefinedbenefitplanstoretainedearnings | |||||||||||||||
| 5．Transferofothercomprehensiveincometoretainedearnings | |||||||||||||||
| 6．Others | |||||||||||||||
| (V)SpecialReserves | - | - | - | - | - | - | - | 791,168.79 | - | - | 791,168.79 | 791,168.79 | |||
1.WithdrawalduringtheCurrentPeriod
| 1.WithdrawalduringtheCurrentPeriod | 74,358,000.95 | 74,358,000.95 | 74,358,000.95 | ||||||||||
| 2．UsageduringtheCurrentPeriod | 73,566,832.16 | 73,566,832.16 | 73,566,832.16 | ||||||||||
| (VI)Others | - | - | |||||||||||
| IV.BalanceatEndoftheCurrentPeriod | 2,852,788,750.00 | 263,154,867.05 | 287,771,455.80 | -55,004,961.46 | 4,743,615.67 | 1,426,394,375.00 | 10,370,640,110.47 | 14,574,945,300.93 | 14,574,945,300.93 |
Items
| Items | 2023 | ||||||||||||||
| EquityAttributabletoOwnersoftheParentCompany | EquityofMinorityShareholders | TotalOwners’Equity | |||||||||||||
| Paid-inCapital(orstock) | OtherEquityInstruments | CapitalReserve | Minus:TreasuryStock | OtherComprehensiveIncome | SpecialReserve | SurplusReserve | Genera;RiskReserve | UndistributedProfits | Others | Subtotal | |||||
| PreferredShares | PerpetualBonds | Others | |||||||||||||
| I.BalanceatEndofLastYear | 3,042,465,447.00 | 1,929,260,092.43 | 747,013,074.21 | 541,072,642.04 | 2,060,395.42 | 1,142,504,553.27 | 7,605,640,318.80 | 13,515,990,374.75 | 13,515,990,374.75 | ||||||
| Plus:Changesinaccountingpolicies | |||||||||||||||
| Correctionofpriorperioderrors | |||||||||||||||
| Others | |||||||||||||||
| II.BalanceatBeginningoftheCurrentYear | 3,042,465,447.00 | 1,929,260,092.43 | 747,013,074.21 | 541,072,642.04 | 2,060,395.42 | 1,142,504,553.27 | 7,605,640,318.80 | 13,515,990,374.75 | 13,515,990,374.75 | ||||||
| III.TheAmountofChangesduringtheCurrentPeriod("-"fordecrease) | -99,039,345.00 | -896,552,332.03 | -170,237,354.94 | -535,384,994.54 | 1,892,051.46 | 183,789,891.03 | 1,822,081,813.06 | 647,024,438.92 | 647,024,438.92 | ||||||
| (I)TotalComprehensiveIncome | -535,384,994.54 | 3,180,949,695.48 | 2,645,564,700.94 | 2,645,564,700.94 | |||||||||||
| (II)Owners'ContributionsandDecreaseofCapital | -99,039,345.00 | -896,552,332.03 | -170,237,354.94 | -825,354,322.09 | -825,354,322.09 | ||||||||||
| 1．Ordinarysharescontributedbyowners | |||||||||||||||
| 2．Capitalcontributedbyholdersofotherequipmentinstruments | |||||||||||||||
| 3．Amountofshare-basedpaymentsrecognizedinowners'equity | 3,933,692.75 | -62,500,000.00 | 66,433,692.75 | 66,433,692.75 | |||||||||||
| 4．Others | -99,039,345.00 | -900,486,024.78 | -107,737,354.94 | -891,788,014.84 | -891,788,014.84 | ||||||||||
| (III)ProfitDistribution | 183,789,891.03 | -1,361,160,331.83 | -1,177,370,440.80 | -1,177,370,440.80 | |||||||||||
| 1．Withdrawalofsurplusreserve | 183,789,891.03 | -183,789,891.03 | |||||||||||||
| 2．WithdrawalofGeneralRiskReserve | |||||||||||||||
| 3．DistributiontoOwners(orShareholders) | -1,177,370,440.80 | -1,177,370,440.80 | -1,177,370,440.80 | ||||||||||||
| 4．Others | |||||||||||||||
| (IV)InternalTransferofOwners'Equity | 2,292,449.41 | 2,292,449.41 | 2,292,449.41 | ||||||||||||
| 1．Capital(orstock)increasedbycapitalreservetransfer | |||||||||||||||
| 2．Capital(orstock)increasedbysurplusreservetransfer | |||||||||||||||
| 3．Transferofsurplusreservetooffsetlosses | |||||||||||||||
| 4．Transferofchangesindefinedbenefitplanstoretainedearnings | |||||||||||||||
MeihuaHoldingsGroupCo.,Ltd.–AnnualReport20245．Transferofothercomprehensiveincometoretainedearnings
| 5．Transferofothercomprehensiveincometoretainedearnings | 2,292,449.41 | 2,292,449.41 | 2,292,449.41 | ||||||||||
| 6．Others | |||||||||||||
| (V)SpecialReserves | 1,892,051.46 | 1,892,051.46 | 1,892,051.46 | ||||||||||
| 1.WithdrawalduringtheCurrentPeriod | 24,824,346.77 | 24,824,346.77 | 24,824,346.77 | ||||||||||
| 2．UsageduringtheCurrentPeriod | 22,932,295.31 | 22,932,295.31 | 22,932,295.31 | ||||||||||
| (VI)Others | |||||||||||||
| IV.BalanceatEndoftheCurrentPeriod | 2,943,426,102.00 | 1,032,707,760.40 | 576,775,719.27 | 5,687,647.50 | 3,952,446.88 | 1,326,294,444.30 | 9,427,722,131.86 | 14,163,014,813.67 | 14,163,014,813.67 |
HeadoftheCompany:WangAijunHeadofAccounting:WangLihongHeadoftheAccountingInstitution:WangAiling
ParentCompany’sStatementofChangesinOwner’sEquity
JanuarytoDecember2024
Unit:YuanCurrency:RMB
| Items | 2024 | ||||||||||
| Paid-inCapital(orstock) | OtherEquityInstruments | CapitalReserve | Minus:TreasuryStock | OtherComprehensiveIncome | SpecialReserve | SurplusReserve | UndistributedProfits | TotalOwners’Equity | |||
| PreferredShares | PerpetualBonds | Others | |||||||||
| I.BalanceatEndofLastYear | 2,943,426,102.00 | 998,957,892.81 | 576,775,719.27 | 1,326,294,444.30 | 2,821,575,330.73 | 7,513,478,050.57 | |||||
| Plus:Changesinaccountingpolicies | |||||||||||
| Correctionofpriorperioderrors | |||||||||||
| Others | |||||||||||
| II.BalanceatBeginningoftheCurrentYear | 2,943,426,102.00 | 998,957,892.81 | 576,775,719.27 | 1,326,294,444.30 | 2,821,575,330.73 | 7,513,478,050.57 | |||||
| III.TheAmountofChangesduringtheCurrentPeriod("-"fordecrease) | -90,637,352.00 | -769,552,893.35 | -289,004,263.47 | 100,099,930.70 | -209,973,765.60 | -681,059,816.78 | |||||
| (I)TotalComprehensiveIncome | 1,587,535,471.35 | 1,587,535,471.35 | |||||||||
| (II)Owners'ContributionsandDecreaseofCapital | -90,637,352.00 | -769,552,893.35 | -289,004,263.47 | -571,185,981.88 | |||||||
| 1．Ordinarysharescontributedbyowners | |||||||||||
| 2．Capitalcontributedbyholdersofotherequipmentinstruments | |||||||||||
| 3．Amountofshare-basedpaymentsrecognizedinowners'equity | |||||||||||
| 4．Others | -90,637,352.00 | -769,552,893.35 | -289,004,263.47 | -571,185,981.88 | |||||||
| (III)ProfitDistribution | 100,099,930.70 | -1,797,509,236.95 | -1,697,409,306.25 | ||||||||
| 1．Withdrawalofsurplusreserve | 100,099,930.70 | -100,099,930.70 | |||||||||
| 2．DistributiontoOwners(orShareholders) | -1,697,409,306.25 | -1,697,409,306.25 | |||||||||
| 3．Others | |||||||||||
| (IV)InternalTransferofOwners'Equity | |||||||||||
| 1．Capital(orstock)increasedbycapitalreservetransfer | |||||||||||
| 2．Capital(orstock)increasedbysurplusreservetransfer | |||||||||||
| 3．Transferofsurplusreservetooffsetlosses | |||||||||||
MeihuaHoldingsGroupCo.,Ltd.–AnnualReport20244．Transferofchangesindefinedbenefitplanstoretainedearnings
| 4．Transferofchangesindefinedbenefitplanstoretainedearnings | ||||||||
| 5．Transferofothercomprehensiveincometoretainedearnings | ||||||||
| 6．Others | ||||||||
| (V)SpecialReserves | ||||||||
| 1．WithdrawalduringtheCurrentPeriod | ||||||||
| 2．UsageduringtheCurrentPeriod | ||||||||
| (VI)Others | ||||||||
| IV.BalanceatEndoftheCurrentPeriod | 2,852,788,750.00 | 229,404,999.46 | 287,771,455.80 | 1,426,394,375.00 | 2,611,601,565.13 | 6,832,418,233.79 |
Items
| Items | 2023 | ||||||||||
| Paid-inCapital(orstock) | OtherEquityInstruments | CapitalReserve | Minus:TreasuryStock | OtherComprehensiveIncome | SpecialReserve | SurplusReserve | UndistributedProfits | TotalOwners’Equity | |||
| PreferredShares | PerpetualBonds | Others | |||||||||
| I.BalanceatEndofLastYear | 3,042,465,447.00 | 1,895,510,224.84 | 747,013,074.21 | 243,628.56 | 1,142,504,553.27 | 2,344,836,752.23 | 7,678,547,531.69 | ||||
| Plus:Changesinaccountingpolicies | |||||||||||
| Correctionofpriorperioderrors | |||||||||||
| Others | |||||||||||
| II.BalanceatBeginningoftheCurrentYear | 3,042,465,447.00 | 1,895,510,224.84 | 747,013,074.21 | 243,628.56 | 1,142,504,553.27 | 2,344,836,752.23 | 7,678,547,531.69 | ||||
| III.AmountofChangesduringtheCurrentPeriod("-"fordecrease) | -99,039,345.00 | -896,552,332.03 | -170,237,354.94 | -243,628.56 | 183,789,891.03 | 476,738,578.50 | -165,069,481.12 | ||||
| (I)TotalComprehensiveIncome | -243,628.56 | 1,837,898,910.33 | 1,837,655,281.77 | ||||||||
| (II)Owners'ContributionsandDecreaseofCapital | -99,039,345.00 | -896,552,332.03 | -170,237,354.94 | -825,354,322.09 | |||||||
| 1．Ordinarysharescontributedbyowners | |||||||||||
| 2．Capitalcontributedbyholdersofotherequipmentinstruments | |||||||||||
| 3．Amountofshare-basedpaymentsrecognizedinowners'equity | 3,933,692.75 | -62,500,000.00 | 66,433,692.75 | ||||||||
| 4．Others | -99,039,345.00 | -900,486,024.78 | -107,737,354.94 | -891,788,014.84 | |||||||
| (III)ProfitDistribution | 183,789,891.03 | -1,361,160,331.83 | -1,177,370,440.80 | ||||||||
| 1．Withdrawalofsurplusreserve | 183,789,891.03 | -183,789,891.03 | |||||||||
| 2．DistributiontoOwners(orShareholders) | -1,177,370,440.80 | -1,177,370,440.80 | |||||||||
| 3．Others | |||||||||||
| (IV)InternalTransferofOwners'Equity | |||||||||||
| 1．Capital(orstock)increasedbycapitalreservetransfer | |||||||||||
| 2．Capital(orstock)increasedbysurplusreservetransfer | |||||||||||
| 3．Transferofsurplusreservetooffsetlosses | |||||||||||
| 4．Transferofchangesindefinedbenefitplanstoretainedearnings | |||||||||||
MeihuaHoldingsGroupCo.,Ltd.–AnnualReport20245．Transferofothercomprehensiveincometoretainedearnings
| 5．Transferofothercomprehensiveincometoretainedearnings | ||||||||
| 6．Others | ||||||||
| (V)SpecialReserves | ||||||||
| 1．WithdrawalduringtheCurrentPeriod | ||||||||
| 2．UsageduringtheCurrentPeriod | ||||||||
| (VI)Others | ||||||||
| IV.BalanceatEndoftheCurrentPeriod | 2,943,426,102.00 | 998,957,892.81 | 576,775,719.27 | 1,326,294,444.30 | 2,821,575,330.73 | 7,513,478,050.57 |
HeadoftheCompany:WangAijunHeadofAccounting:WangLihongHeadoftheAccountingInstitution:WangAiling
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III.BasicInformationoftheCompany
1.OverviewoftheCompany?Applicable□NotApplicable
(I)RegisteredAddress,OrganizationalFormandHeadquarterAddressoftheCompanyMeihuaHoldingsGroupCo.,Ltd.(hereinafterreferredtoas"Company"or"TheCompany"),formerlyknownasWuzhouMinovoCo.,Ltd.(hereinafterreferredtoas"WuzhouMinovo"),waslistedonShanghaiStockExchangeonFebruary17,1995,underwentanamechangefromWuzhouMinovoCo.,Ltd.toitscurrentnamefollowingtheabsorptionandmergerwiththeoriginalMeihuaHoldingsGroupCo.,Ltd.(hereinafterreferredtoas"OriginalMeihuaGroup")andcompletedthebusinesschangeregistrationonMarch3,2011.TheCompany’sunifiedsocialcreditcodeis91540000219667563J.
TheOriginalMeihuaGroup,formerlyknownasHebeiMeihuaMSGGroupCo.,Ltd.,wasestablishedwithinvestmentfromnaturalpersonsMengQingshan,YangWeiyong,andHuJijun.ItobtainedtheBusinessLicenseofLegalEntityNo.131081000002308issuedbytheHebeiAdministrationforIndustryandCommerceonApril23,2002.WuzhouMinovowasestablishedasastockcorporationthroughfundraising,followingtheissuanceof30millionsharestothepubliconJanuary6,1995,withChengduTibetHotel,TibetAutonomousRegionTrustInvestmentCompanyandTibetXingzangIndustrialDevelopmentCompanyassponsors.ItwasofficiallyregisteredinLhasa,TibetAutonomousRegiononFebruary9,1995,withaBusinessLicenseofLegalEntitynumberof5400001000327andatotalsharecapitalof73millionshares.OnFebruary17ofthesameyear,withtheapprovaloftheChinaSecuritiesRegulatoryCommission,theCompany'spublicshareswerelistedfortradingontheShanghaiStockExchange,underthestockcode600873.
OnAugust12,1995,theShareholders'MeetingoftheCompanyapprovedtheDividendDistributionPlanandimplementedthe1994DistributionPlanofgranting3sharesforevery10sharesheldtoallshareholdersonAugust21,1995.Basedonafoundationof73millionshares,atotalof21.9millionsharesweredistributed,elevatingtheCompany'stotalsharecapitalto94.9millionshares.
OnDecember19,1996,theCompanydeliberatedandapprovedtheRightsIssuePlanattheExtraordinaryShareholders'MeetingfortheYear1996andimplementedtherightsissueplanofgranting3sharesforevery10sharestoallshareholdersonAugust12,1997.Basedonafoundationof94.90millionshares,atotalof13,336,603shares(including1,436,603transferrightshares)weredistributed,elevatingtheCompany'stotalsharecapitalto108,236,603shares.
OnFebruary16,2003,ShandongWuzhouInvestmentGroupCo.,Ltd.andWeifangBohaiIndustryCo.,Ltd.respectivelyenteredintoagreementswiththeTibetAutonomousRegionState-ownedAssetsManagementCompany(whoseshareswereobtainedthroughgratuitoustransferbytheTibetAutonomousRegionState-ownedAssetsManagementBureau),wherebyShandongWuzhouInvestmentGroupCo.,Ltd.acquired27,102,445sharesoftheCompany'sstate-ownedlegalpersonsharesfromTibetAutonomousRegionState-ownedAssetsManagementCompany,representing25.04%oftheCompany'stotalsharecapital,andbecametheCompany'slargestshareholder;WeifangBohaiIndustryCo.,Ltd.acquired21,535,555shares,accountingfor19.90%oftheCompany'stotalsharecapital.Theaforementionedequitytransferwasformally
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approvedbytheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncilthroughdocument"State-ownedAssetsOwnershipLetter[2003]No.25"onMay29,2003.OnAugust11,2003,theCompanyenteredintotheAssetExchangeAgreementwithShandongWuzhouInvestmentGroupCo.,Ltd.andShandongWuzhouElectricCo.,Ltd.andexecutedasignificantassetexchange.Followingthecompletionofthisexchange,thetotalsharecapitalremainedunchanged.OnMay22,2006,theCompanyconvenedthe"ShareholdersMeetingRelatedtotheSplit-ShareReform,"wheretheCompany'ssplit-sharereformplanwasdeliberatedandapproved.Allnon-tradableshareholdersoftheCompanygranted2.8sharesforevery10sharestoalltradableshareholders.TheCompanycompletedtheimplementationoftheaforementionedsplit-sharereformplanonJune2,2006.
OnDecember22,2010,withtheapprovaloftheChinaSecuritiesRegulatoryCommissionthroughthedocumentZJXK[2010]No.1888"ApprovalofWuzhouMinovoCo.,Ltd.'sMajorAssetSaleandMergerwithMeihuaHoldingsGroupCo.,Ltd.byIssuingNewShares,"theCompanyissued900,000,000RMBordinarysharestotheOriginalMeihuaGroupfortheacquisitionofallequityenjoyedbyitsshareholders.OnDecember24,2010,BDOCHINALIXINDAHUA.CertifiedPublicAccountantsCO.,LTD.issuedthedocumentLXDHYZ[2010]No.200"Capital(Contribution)VerificationReport"forthischangeinthesharecapital.OnDecember31,2010,theCompanyobtainedtheCertificateofSecuritiesChangeRegistrationIssuedbytheShanghaiBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.,withtheregisteredsharecapitalforsecuritiesof1,008,236,603shares.OnMarch28,2011,theCompanyapprovedtheimplementationofthecapitalreserveconversiontosharecapitalplanduringtheAnnualShareholdersMeetingfortheYear2010.Basedonafoundationof1,008,236,603shares,every10shareswereconvertedinto16.861shares,leadingtoatotalsharecapitalof2,708,236,603sharespost-conversion.OnApril12,2011,theCompanycompletedthesharechangeregistrationattheShanghaiBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.,withtheregisteredsharecapitalforsecuritiesof2,708,236,603shares.
AccordingtotheresolutionsoftheFifthMeetingoftheSixthBoardofDirectorsonApril22,2011,theFourteenthMeetingoftheSixthBoardofDirectorsonFebruary22,2012,the2011AnnualShareholdersMeetingheldonMarch22,2012,andtheprovisionsspecifiedintheamendedarticlesofassociation,alongwiththeapprovaloftheChinaSecuritiesRegulatoryCommissionthroughthedocumentZJXKZ[2012]No.1262"ApprovalofMeihuaHoldingsGroupCo.,Ltd.'sPrivateIssuanceofStocks,"theCompanyagreedtoprivatelyissueupto400millionRMBordinaryshares(Ashares).OnMarch26,2013,theCompanyprivatelyissued399,990,000RMBordinaryshares(Ashares)tospecificinvestors,resultinginatotalsharecapitalof3,108,226,603sharesafterthisissuance.OnMarch29,2013,theCompanycompletedtheregistrationandcustodyproceduresattheShanghaiBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.
AccordingtotheresolutionsoftheFifteenthMeetingoftheEighthBoardofDirectorsonMay30,2018,theSeventeenthMeetingoftheEighthBoardofDirectorsonJune20,2018,andtheannualshareholdersmeetingheldonJune20,2018,theCompanyestablishedastockincentiveplanbyoffering34,534,865treasurysharesatapriceof2.46yuanpershare.Thesesharesweregrantedtoatotalof109incentive
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recipientsincludingdirectors,seniorexecutives,keymanagementpersonnel,andcoretechnicalstaffworkingforMeihuaBio,withnochangeintheregisteredcapital.
Accordingtotheresolutionsofthe22
nd
MeetingoftheEighthBoardofDirectorsonDecember7,2018andtheFirstExtraordinaryShareholdersMeetingin2018,theCompanyprocessedthecancellationof51,565subscribedsharesthatwererelinquished.Afterthecancellation,thetotalsharecapitaloftheCompanyamountedto3,108,175,038shares.Accordingtotheresolutionsofthe28thMeetingoftheEighthBoardofDirectorsinJune2019andthe2018AnnualShareholdersMeetingonJune24,2019,theCompanyrepurchased3,885,400restrictedsharesforcancellationduetothedepartureofincentiverecipientsandincompleteindividualperformanceassessments.Afterthecancellation,thetotalsharecapitaloftheCompanyamountedto3,104,289,638shares.AccordingtotheresolutionsoftheFourthMeetingoftheNinthBoardofDirectorsonApril22,2020,andthe2019AnnualShareholdersMeetingonMay20,2020,theCompanyrepurchased4,267,790restrictedsharesforcancellationduetothedepartureofincentiverecipientsandincompleteindividualperformanceassessments.Afterthecancellation,thetotalsharecapitaloftheCompanyamountedto3,100,021,848.00shares.
AccordingtotheresolutionsoftheSeventeenthMeetingoftheNinthBoardofDirectorsonMay12,2021,andthe2020AnnualShareholdersMeetingonMay26,2021,theCompanyrepurchased1,401,920restrictedsharesforcancellationduetothedepartureofincentiverecipientsandincompleteindividualperformanceassessments.Afterthecancellation,thetotalsharecapitaloftheCompanyamountedto3,098,619,928shares.Accordingtotheresolutionsofthe27thMeetingoftheNinthBoardofDirectorsonDecember15,2021,theSecondExtraordinaryShareholdersMeetingfortheyear2021onDecember31,2021,andthe2021AnnualShareholdersMeetingonJune9,2022,theCompanycanceledatotalof56,154,481sharesrepurchasedpreviously.Afterthecancellation,thetotalsharecapitaloftheCompanyamountedto3,042,465,447shares.
Accordingtotheresolutionspassedatthe13thMeetingofthe10thBoardofDirectorsheldonSeptember23,2024,andthe2024SecondExtraordinaryShareholders’MeetingheldonOctober11,2024,theproposaltochangethecompany’sregisteredcapitalwasapproved.Basedontherelevantresolutionfromtheshareholders’meeting,thecompanywilluse90,637,352repurchasedsharesforcancellationtoreduceitsregisteredcapital.Afterthecancellationoftheseshares,thecompany’stotalsharecapitalwillbereducedfrom2,943,426,102sharesto2,852,788,750shares.
Afteryearsofissuingbonusshares,allottingnewshares,capitalizingretainedearnings,andissuingadditionalshares,asofDecember31,2024,thecompany’stotalsharecapitalamountsto2,852,788,750shares,withatotalsharecapitalof2,852,788,750yuan.Theregisteredaddressis158JinzhuWestRoad,SunshineNewCity,Building11,Room5,LhasaCity.TheactualcontrollerisMengQingshan.
(II)TheCompany’sBusinessNatureandMajorOperatingActivities
Thecompanyisinthefoodmanufacturingindustry,withitsmainproductsincludingfoodflavorenhancementproducts(suchasmonosodiumglutamate,disodium5’-nucleotides,xanthangumfoodgrade,
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etc.),animalnutritionaminoacids(suchaslysine,threonine,germinalaminoacids,valine,etc.),humanmedicalaminoacids(suchasglutamine,proline,etc.),andotherproducts(suchasxanthangumpetroleumgrade,fertilizers,etc.).
(III)ScopeofConsolidatedFinancialStatementsThecompanycurrentlyconsolidates19subsidiaries,asdetailedinNote7andotherentities’interests.Thenumberofsubsidiariesincludedintheconsolidatedfinancialstatementshasincreasedby2anddecreasedby2comparedtothepreviousperiod.DetailedinformationaboutthechangesintheconsolidationscopeisprovidedinNote6,whichoutlinesthechangesinconsolidationscope.(IV)ApprovalforIssuanceofFinancialStatementsThesefinancialstatementswereapprovedforissuancebytheCompany'sBoardofDirectorsonMarch17,2025.IV.PreparationBasisforFinancialStatements
1.PreparationBasis
ThefinancialstatementsoftheCompanyarepreparedonagoingconcernbasis.TheCompanyrecognizesandmeasurestheactualtransactionsandmattersbasedontheAccountingStandardsforBusinessEnterprises—BasicStandardsissuedbytheMinistryofFinance,specificAccountingStandardsforBusinessEnterprises,applicationguidelinesfortheAccountingStandardsforBusinessEnterprises,interpretationsoftheAccountingStandardsforBusinessEnterprisesandotherrelevantprovisions(hereinafterreferredtoas"TheAccountingStandardsforBusinessEnterprises"),andpreparesitsfinancialstatementsinaccordancewiththesestandards,alongwiththeprovisionsspecifiedintheRulesfortheInformationDisclosureandCompilationbyCompaniesOfferingSecuritiestothePublicNo.24—GeneralProvisionsonFinancialReports(2023revision).
2.GoingConcern
?Applicable□NotApplicable
TheCompanyhasevaluateditsabilitytocontinueasagoingconcernforthe12monthsfollowingtheendofthereportingperiodandhasnotidentifiedanymattersorcircumstancescastingdoubtonitsabilitytocontinueasagoingconcern.Therefore,thesefinancialstatementsarepreparedonthebasisofagoingconcernassumption.V.SignificantAccountingPoliciesandEstimatesSpecificaccountingpoliciesandestimatesindicate:
□Applicable?NotApplicable
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbythecompanycomplywiththerequirementsoftheAccountingStandardsforEnterprisesandtruthfullyandcompletelyreflectthecompany’sfinancialposition,operatingresults,cashflow,andotherrelevantinformationforthereportingperiod.
2.AccountingPeriodTheaccountingyearrunsfromJanuary1toDecember31oftheGregoriancalendar.
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3.OperatingCycle?Applicable□NotApplicable
Theoperatingcyclereferstotheperiodfromtheacquisitionofassetsforprocessingtotherealizationofcashorcashequivalents.TheCompanyuses12monthsasitsoperatingcycleandasthecriterionfortheclassificationofliquidityofassetsandliabilities.
4.FunctionalCurrency
ThecompanyusesRMBasitsfunctionalcurrencyforaccounting.
Overseassubsidiariesusethecurrencyoftheprimaryeconomicenvironmentinwhichtheyoperateastheirfunctionalcurrency,andtheirfinancialstatementsaretranslatedintoRMBduringpreparation.
5.DeterminationMethodandSelectionBasisforMaterialityStandards?Applicable□NotApplicable
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Items
| Items | MaterialityStandards |
| Accountsreceivablewithmaterialindividualprovisionforbaddebts | Theamountofindividualprovisionforbaddebtsaccountsformorethan10%ofthetotalamountofvariousaccountsreceivablewithprovisionforbaddebtsandexceedsRMB20millionyuan. |
| AccountsreceivablewithprovisionforbaddebtsandwithmaterialamountsrecoveredorreversedduringtheCurrentPeriodand | Theamountofrecoveryorreversalofindividualprovisionforbaddebtsaccountsformorethan10%ofthetotalaccountreceivableandexceedsRMB20millionyuan. |
| Significantwrite-offsofaccountsreceivable | Thewrite-offamountofindividualaccountreceivableaccountsformorethan10%ofthetotalprovisionforbaddebtsforvariousaccountsreceivableandexceedsRMB20millionyuan. |
| Advancepayments,accountspayable,contractliabilities,andotheraccountspayablewithmaterialamountsoutstandingforoveroneyear | Individualadvancepayments,accountspayable,contractliabilities,andotheraccountpayableamounttomorethan10%ofthetotalamountofsuchaccountsandexceedRMB20millionyuan. |
| Materialconstructioninprogress | ThebudgetamountforindividualconstructioninprogressprojectexceedsRMB100millionyuan. |
| Materialcashflowsrelatedtoinvestingactivities | Individualinvestingactivitiesaccountformorethan10%ofthetotalcashinflowsoroutflowsreceivedorpaidfortheinvestingactivitiesandexceedRMB200millionyuan. |
| Materialjointventures | Thebookvalueoflong-termequityinvestmentsinanindividualinvestedpartyaccountsformorethan5%oftheconsolidatednetassetsandexceedsRMB100million,ortheinvestmentgainsorlossesrecognizedundertheequitymethodforlong-termequityinvestmentsaccountformorethan10%oftheconsolidatednetprofit. |
| Materialcontingentmatters | Anysingletypeofestimatedliabilityaccountsformorethan10%ofthetotalestimatedliabilitiesandexceedsRMB100million. |
6.AccountingTreatmentMethodforMergerofEnterprisesundertheSameControlandDifferentControls
?Applicable□NotApplicable
1．Iftheterms,conditions,andeconomicimpactsofvarioustransactionsinvolvedinthestaged
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implementationoftheenterprisemergermeetoneormoreofthefollowingcriteria,treatthemultipletransactionsasapackagedealforaccountingtreatment.
(1)Thesetransactionsareconcludedsimultaneouslyortakingintoaccounttheirmutualimpacts;
(2)Thesetransactionscollectivelyachieveacompletebusinessoutcome;
(3)Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;
(4)Atransactionisuneconomicalwhenconsideredalone,butbecomeseconomicalwhenconsideredtogetherwithothertransactions.
2．Enterprisemergerunderthesamecontrol
Enterprisesparticipatinginthemergeraresubjecttothesameultimatecontrolbyonepartyormultipleparties,andsuchcontrolisnottemporary,constitutingamergerofenterprisesunderthesamecontrol.
TheassetsandliabilitiesobtainedbytheCompanyintheenterprisemergeraremeasuredatthecarryingamountsofthemergedparty'sassetsandliabilities(includinggoodwillformedbytheultimatecontrollingpartyfromtheacquisitionofthemergedparty)intheconsolidatedfinancialstatementsoftheultimatecontrollingpartyasofthemergerdate.Incaseofanydifferencebetweenthecarryingamountofnetassetsobtainedinthemergerandthecarryingamount(ortotalfacevalueofsharesissued)oftheconsiderationpaidforthemerger,thesharepremiuminthecapitalreservewillbeadjusted,andifthesharepremiuminthecapitalsurplusisinsufficienttooffset,theretainedearningswillbeadjusted.
Iftherearecontingentconsiderationsrequiringtherecognitionofestimatedliabilitiesorassetsandthedifferencebetweentheamountoftheseestimatedliabilitiesorassetsandthesubsequentsettlementamountofcontingentconsiderations,thecapitalsurplus(capitalpremiumorsharepremium)willbeadjusted.Ifthecapitalsurplusisinsufficient,theretainedearningswillbeadjusted.
Forenterprisemergersachievedthroughmultipletransactions,ultimatelyformingapackagedeal,eachtransactionwithinitshouldbeaccountedforasoneacquisitionofcontrol.Fortransactionsnotconstitutingapackagedeal,onthedaycontrolisacquired,thecapitalreserveisadjustedbasedonthedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentsandthebookvalueofthelong-termequityinvestmentsbeforethemergerplusthebookvalueoftheconsiderationnewlypaidforfurtheracquisitionofsharesonthemergerdate,withretainedearningsbeingadjustedforanyshortfallinthecapitalreserve.Regardingequityinvestmentsheldbeforethemergerdate,othercomprehensiveincomeaccountedforbytheequitymethodorrecognizedbyfinancialinstrumentsandaccountedforandrecognizedbythemeasurementstandardswillnotundergoaccountingtreatmentuntiltheinvestmentisdisposedof,atwhichtimeitwillbeaccountedforbasedonthesameprinciplesasdirectlydisposingofassetsorliabilitiesassociatedwiththeinvestedparty.Anychangesintheowners’equity,excludingnetprofitandloss,othercomprehensiveincome,andprofitdistributioninthenetassetsoftheinvestedparty,accountedandrecognizedthroughtheequitymethod,willnotbeaccountedforuntilthedisposaloftheinvestment,atwhichpointtheyaretransferredtotheprofitandlossforthecurrentperiod.
3．Enterprisemergernotunderthesamecontrol
Enterprisesparticipatinginthemergerarenotsubjecttothesameultimatecontrolbyonepartyormultiplepartiesbeforeandafterthemerger,constitutingamergerofenterprisesnotunderthesamecontrol.
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Ontheacquisitiondate,theassetspaidasconsiderationfortheenterprisemergerandtheliabilitiesincurredorassumedaremeasuredatfairvalue,andthedifferencebetweenthefairvalueandtheircarryingamountsisrecognizedintheprofitandlossforthecurrentperiod.
Thedifferencebetweenthemergercostandtheidentifiablefairvalueshareofnetassetsacquiredfromtheacquiredentityinthemerger,ifpositive,isrecognizedasgoodwill;ifnegative,itisrecognizedintheprofitandlossforthecurrentperiodafterthoroughreview.
Forenterprisemergernotunderthesamecontrolachievedthroughmultipleexchangesandtransactionsinaphasedmanner,constitutingapackagedeal,eachtransactionwithinitshouldbeaccountedforasoneacquisitionofcontrol.Wheretransactionsdonotconstituteapackagedeal,andequityinvestmentsheldpriortothemergerdateareaccountedforusingtheequitymethod,theinitialinvestmentcostofthoseinvestmentsshouldbetheaggregateofthebookvalueoftheequityinvestmentsintheacquiredentityasoftheacquisitiondateandanynewlyaddedinvestmentmadeontheacquisitiondate.Othercomprehensiveincomefromequityinvestmentsheldpriortotheacquisitiondateandaccountedforandrecognizedusingtheequitymethodshouldbeaccountedforupondisposaloftheinvestment,basedonthesamebasisasdirectlydisposingoftherelevantassetsorliabilitiesoftheinvestedparty.Forequityinvestmentsrecognizedusingfinancialinstrumentsandaccountedforusingthemeasurementstandards,theinitialinvestmentcostonthemergerdateshouldbethesumoftheequityinvestment'sfairvalueonthemergerdateandthenewlyaddedinvestmentcost.Thedifferencebetweenthefairvalueandbookvalueoftheoriginallyheldequity,alongwiththeaccumulatedfairvaluechangespreviouslyrecognizedinothercomprehensiveincome,shouldallbetransferredtoinvestmentincomeforthecurrentperiodasofthemergerdate.
4．Expensesrelatedtothemerger
Intermediaryexpensessuchasaudit,legalservices,evaluationconsultation,andotherdirectlyrelatedexpensesincurredfortheenterprisemergerarerecognizedintheprofitandlossforthecurrentperiodatthetimeofoccurrence.Transactioncostsforissuingequitysecuritiesfortheenterprisemergercanbedirectlyattributedtoequitytransactionsanddeductedfromequity.
7.DeterminationCriteriaforControlsandPreparationMethodforConsolidatedFinancialStatements
?Applicable□NotApplicable
1．Determinationcriteriaforcontrols
Controlreferstothepowerheldbytheinvestingpartyovertheinvestedparty,enjoyingvariablereturnsbyinvolvementintherelevantactivitiescarriedbytheinvestedpartyandhavingtheabilitytoinfluencetheamountofreturnsthroughexercisingpowerovertheinvestedparty.
TheCompanymakesjudgmentsonwhetheritcontrolstheinvestedpartybasedonacomprehensiveconsiderationofallrelevantfactsandcircumstances.Oncechangesinrelevantfactsandcircumstancesleadtochangesintheelementsinvolvedindefiningcontrol,theCompanywillconductareassessment.Therelevantfactsandcircumstancesmainlyinclude:
(1)Thepurposeofestablishingtheinvestedparty.
(2)Theinvestedparty'srelevantactivitiesandhowdecisionsaremaderegardingthoseactivities.
(3)Whethertherightsenjoyedbytheinvestingpartycurrentlyallowittodominatetheinvestedparty's
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relevantactivities.
(4)Whethertheinvestingpartygainsvariablereturnsbyinvolvementintheinvestedparty'srelevantactivities.
(5)Whethertheinvestingpartyhastheabilitytoinfluencetheamountofreturnsthroughexercisingpowerovertheinvestedparty.
(6)Therelationshipbetweentheinvestingpartyandotherparties.
2．ConsolidationScope
TheconsolidationscopeoftheCompany'sconsolidatedfinancialstatementsisdeterminedbasedoncontrol,andallsubsidiaries(includingseparateentitiescontrolledbytheCompany)areincludedintheconsolidatedfinancialstatements.
3．ConsolidationProcedures
TheCompanypreparestheconsolidatedfinancialstatementsbasedonthefinancialstatementsoftheCompanyanditssubsidiaries,andotherrelevantinformation.Whenpreparingtheconsolidatedfinancialstatements,theCompanyviewstheenterprisegroupasasingleaccountingentityandreflectstheoverallfinancialposition,operatingresultsandcashflowsoftheenterprisegroupinaccordancewiththerecognition,measurement,andreportingrequirementsofrelevantAccountingStandardsforBusinessEnterprisesandtheunifiedaccountingpolicies.
TheaccountingpoliciesandperiodsadoptedbyallsubsidiariesincludedintheconsolidationscopeoftheconsolidatedfinancialstatementsareconsistentwiththoseoftheCompany.Ininstanceswhereasubsidiary'saccountingpoliciesorperiodsdifferfromthoseoftheCompany,necessaryadjustmentsshouldbemadeinthepreparationoftheconsolidatedfinancialstatementstoalignwiththeCompany'saccountingpoliciesandperiods.
Whenpreparingtheconsolidatedfinancialstatements,theimpactofinternaltransactionsbetweentheCompanyanditssubsidiaries,aswellasbetweensubsidiaries,ontheconsolidatedbalancesheet,consolidatedincomestatement,consolidatedcashflowstatements,andconsolidatedstatementofchangesinequityisoffset.IftherearedifferencesintherecognitionofthesametransactionfromtheperspectiveoftheconsolidatedfinancialstatementsoftheenterprisegroupandfromtheperspectiveoftheCompanyorasubsidiaryastheaccountingentity,adjustmentsaremadefromtheperspectiveoftheenterprisegroupforsuchtransactions.
Theportionsofsubsidiaryowners'equity,currentnetprofit,andcurrentcomprehensiveincomeattributabletominorityshareholdersareseparatelypresentedundertheowner'sequityitemintheconsolidatedbalancesheets,aswellasunderthenetprofititemandinthetotalcomprehensiveincomeitemintheconsolidatedincomestatements.Iftheportionofthecurrentlossesbornebyminorityshareholdersexceedsthebalanceofminorityshareholders'equityderivedfromtheirinitialownershipinterestsinthesubsidiary,minorityshareholders’interestwillbedeductedaccordingly.
Forsubsidiariesacquiredthroughenterprisemergerunderthesamecontrol,theirfinancialstatementsareadjustedbasedonthefairvalueoftheirassetsandliabilities(includinggoodwillformedbytheultimatecontrollingpartyfromacquisitionofthesubsidiary)inthefinancialstatementsoftheultimatecontrolling
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party.
Forsubsidiariesacquiredthroughenterprisemergernotunderthesamecontrol,theirfinancialstatementsareadjustedbasedonthefairvalueofidentifiablenetassetsasoftheacquisitiondate.
(1)AdditionofSubsidiariesorBusinesses
Ifsubsidiariesorbusinessesareaddedduetoenterprisemergerunderthesamecontrolduringthereportingperiod,thebeginningbalanceintheconsolidatedbalancesheetareadjusted;theincome,expenses,andprofitsfromthebeginningofthecurrentperiodofsubsidiaryorbusinessmergertotheendofthereportingperiodareincludedintheconsolidatedincomestatement;thecashflowsfromthebeginningofthecurrentperiodofsubsidiaryorbusinessmergertotheendofthereportingperiodareincludedintheconsolidatedcashflowstatement,andrelateditemsinthecomparativestatementsareadjusted,withthereportingentityafterthemergerbeingconsideredashavingexistedsincethepointwhencontrolcommencedbytheultimatecontrollingparty.
Ifcontrolcanbeexercisedovertheinvestedpartyunderthesamecontrolduetoadditionalinvestmentsorotherreasons,itisdeemedthatallpartiesinvolvedinthemergerexistedintheircurrentstateandperformedadjustmentasofthecommencementofcontrolbytheultimatecontrollingparty.Forequityinvestmentsheldbeforethecontroloverthemergedpartyisobtained,anyprofitorloss,othercomprehensiveincome,andotherchangesinnetassetsrecognizedbetweentheacquisitiondateoftheoriginalequityorthedatewhenthemergingpartyandthemergedpartyareundercommoncontrol,whicheverislater,areoffsetagainstretainedearningsortheprofitandlossforthecurrentperiodatthebeginningofthecomparativereportingperiod.
Ifduringthereportingperiod,subsidiariesorbusinessesareaddedduetotheenterprisemergernotunderthesamecontrol,thebeginningbalanceintheconsolidatedbalancesheetremainunchanged.Therevenues,expenses,andprofitsofthesubsidiariesorbusinessesfromtheacquisitiondatetotheendofthereportingperiodareincludedintheconsolidatedincomestatement,whilethecashflowsfromtheacquisitiondatetotheendofthereportingperiodofthesubsidiariesorbusinessesareincludedintheconsolidatedcashflowstatement.
Ifcontrolcanbeexercisedovertheinvestedpartynotunderthesamecontrol,theCompanyremeasurestheequityinterestsheldintheacquiredpartypriortotheacquisitiondateattheirfairvalueontheacquisitiondate,withthedifferencebetweenthefairvalueandtheirbookvaluerecognizedintheinvestmentincomeforthecurrentperiod.Fortheequityinterestsheldintheacquiredpartybeforetheacquisitiondatethatinvolveothercomprehensiveincomeaccountedforusingtheequitymethodandotherchangesinowner'sequityexcludingnetprofitsandlosses,othercomprehensiveincome,andprofitdistribution,othercomprehensiveincomeandotherchangesinowner'sequityrelatedtothemaretransferredtotheinvestmentincomeforthecurrentperiodasoftheacquisitiondate,exceptforothercomprehensiveincomearisingfromtheinvestedparty’sremeasurementofthechangesinthenetliabilitiesorassetsinthedefinedbenefitplan.
(2)DisposalofSubsidiariesorBusinesses
1)Regulardisposalmethod
Duringthereportingperiod,iftheCompanydisposesofsubsidiariesorbusinesses,therevenue,
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expenses,andprofitsofthesubsidiariesorbusinessesfromthebeginningoftheperiodtothedisposaldateareincludedintheconsolidatedincomestatement,whilethecashflowsofthesubsidiariesorbusinessesfromthebeginningoftheperiodtothedisposaldateareincludedintheconsolidatedcashflowstatement.Whencontrolovertheinvestedpartyislostduetothedisposalofaportionofequityinvestmentsorotherreasons,theCompanyremeasurestheremainingequityinvestmentsattheirfairvalueonthedatesuchcontrolislost.Thesumoftheconsiderationreceivedfromthedisposalofequityandthefairvalueoftheremainingequity,reducedbytheproportionateshareofnetassetsandgoodwillcontinuouslycalculatedbasedontheoriginalownershippercentagesincetheacquisitionormergerdate,isrecognizedintheinvestmentincomefortheperiodsuchcontrolislost.Othercomprehensiveincomeorotherchangesinowner'sequity(excludingnetprofitandloss,othercomprehensiveincomeandprofitdistribution)relatedtotheequityinvestmentsoftheoriginalsubsidiaryaretransferredtothecurrentinvestmentincomewhencontrolislost,exceptforothercomprehensiveincomearisingfromtheinvestedparty’sremeasurementofthechangesinthenetliabilitiesorassetsinthedefinedbenefitplan.
2)PhaseddisposalofsubsidiariesWhenthedisposalofequityinvestmentsinsubsidiariesisperformedthroughmultipletransactionsinaphasedmanneruntilcontrolislost,iftheterms,conditions,andeconomicimpactofeachtransactionrelatedtothedisposalofequityinvestmentsinsubsidiariesmeetoneormoreofthefollowingcriteria,itindicatesthatthemultipletransactionmattersshouldbeaccountedforasapackagedeal:
A.Thesetransactionsareconcludedsimultaneouslyortakingintoaccounttheirmutualimpacts;B.Thesetransactionscollectivelyachieveacompletebusinessoutcome;C.Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;D.Atransactionisuneconomicalwhenconsideredalone,butbecomeseconomicalwhenconsideredtogetherwithothertransactions.Whentransactionsinvolvingthedisposalofequityinvestmentsinsubsidiariesuntilcontrolislostarepartofapackagedeal,theCompanyaccountsforeachtransactionasasingledisposalofthesubsidiaryandlossofcontrol.However,thedifferencebetweentheproceedsfromeachdisposalandtheproportionateshareofnetassetsofthesubsidiary,asrelatedtothedisposalofinvestment,isrecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementpriortothelossofcontrol,andissubsequentlytransferredtotheprofitorlossfortheperiodwhencontrolislost.Whentransactionsinvolvingthedisposalofequityinvestmentsinsubsidiariesuntilcontrolislostarenotpartofapackagedeal,theCompanyaccountsforthemaccordingtotherelevantpoliciesforpartiallydisposingofequityinvestmentsinsubsidiarieswithoutlosingcontrolbeforecontrolislostandaccordingtotheregulardisposalmethodfordisposalofsubsidiarieswhencontrolislost.
(3)AcquisitionofminorityequityinsubsidiaryForthedifferencebetweenthelong-termequityinvestmentnewlyacquiredduetotheacquisitionofminorityequitybytheCompanyandtheproportionateshareofnetassetscontinuouslycalculatedbasedontheincreasedownershippercentagesincetheacquisitiondate(ormergerdate),thesharepremiuminthecapitalreserveintheconsolidatedbalancesheetisadjustedtooffset.Ifthesharepremiumisinsufficientto
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offsetthedifference,theretainedearningsareadjustedtooffset.
(4)PartialdisposalofequityinvestmentsinsubsidiarieswithoutlosingcontrolForthedifferencebetweenthedisposalproceedsfrompartialdisposaloflong-termequityinvestmentsinsubsidiarieswithoutlosingcontrolandtheproportionateshareofnetassetsheldinsubsidiariescontinuouslycalculatedfromtheacquisitionormergerdateduetothedisposaloflong-termequityinvestments,adjustmentsaremadetothesharepremiuminthecapitalreserveintheconsolidatedbalancesheet.Ifthesharepremiumisinsufficienttooffsetthedifference,adjustmentsaremadetotheretainedearnings.
8.ClassificationofJointArrangementsandAccountingTreatmentMethodforJointOperations
?Applicable□NotApplicable1．ClassificationofjointarrangementsBasedonfactorssuchasthestructuresandlegalformsofjointarrangements,termsagreedupon,andotherrelevantfactsandcircumstances,theCompanyclassifiesjointarrangementsintojointoperationsandjointventures.Jointoperationsrefertojointarrangementsinwhichthepartiesinvolvedsharetheassetsandliabilitiesrelatedtothearrangements.Jointventuresrefertojointarrangementsinwhichthepartiesinvolvedhaverightssolelytothenetassetsofthearrangements.2．AccountingtreatmentmethodforjointoperationsTheCompanyrecognizesthefollowingitemsrelatedtoitsinterestsinjointoperationsandaccountsfortheminaccordancewithrelevantAccountingStandardsforBusinessEnterprises:
(1)Recognitionofassetsheldseparatelyandrecognitionofjointlyheldassetsbasedonproportionalownership.
(2)Recognitionofliabilitiesheldseparatelyandrecognitionofjointlyheldliabilitiesbasedonproportionalownership.
(3)Recognitionofrevenuefromthesaleofitsshareofoutputfromjointoperations.
(4)Recognitionofrevenuefromthesaleofoutputfromjointoperationsbasedonproportionalownership.
(5)Recognitionofexpensesincurredseparatelyandrecognitionofexpensesincurredbyjointoperationsbasedonproportionalownership.
WhentheCompanycontributesorsellsassets(excludingthoseconstitutingabusiness)toajointoperation,itrecognizesonlytheportionoftheprofitorlossattributabletootherpartiesinvolvedinthejointoperationuntiltheassetsaresoldtoathirdpartybythejointoperation.IfanyassetscontributedorsoldincurimpairmentlossesaspertheAccountingStandardsforBusinessEnterprisesNo.8-AssetImpairment,theCompanyrecognizesthefullamountofsuchloss.
WhentheCompanyacquiresassets(excludingthoseconstitutingabusiness)fromajointoperation,itrecognizesonlytheportionoftheprofitorlossattributabletootherpartiesinvolvedinthejointoperationuntiltheassetsaresoldtoathirdpartybythejointoperation.IfanyassetsacquiredincurimpairmentlossesaspertheAccountingStandardsforBusinessEnterprisesNo.8-AssetImpairment,theCompanyrecognizesthelossinproportiontoitsshare.
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TheCompanydoesnotexercisejointcontroloverjointoperations.IftheCompanysharestheassetsandliabilitiesrelatedtothejointoperations,itshouldaccountfortheminaccordancewiththeprinciplesdescribedabove;otherwise,itshouldaccountfortheminaccordancewiththeprovisionsspecifiedintherelevantAccountingStandardsforBusinessEnterprises.
9.DeterminationCriteriaforCashandCashEquivalents
Cashequivalentsrefertoshort-terminvestments(generallymaturingwithinthreemonthsfromthepurchasedate)thatarehighlyliquid,easilyconvertibleintoaknownamountofcash,andhaveaminimalriskofchangesinvalue.
Whenpreparingthecashflowstatements,theCompanyrecognizescashonhandaswellasdepositsthatarereadilyavailableforpaymentascashandinvestmentsmeetingthefollowingcriteriaascashequivalents:
short-termmaturity(generallywithinthreemonthsfromthedateofacquisition),strongliquidity,casheasilyconvertibleintoknownamounts,andminimalriskofvaluechanges.
10.TranslationofForeignCurrencyTransactionsandForeignCurrencyFinancialStatements
?Applicable□NotApplicable
1.ForeignCurrencyTransactionsForeigncurrencytransactionsareinitiallyrecognizedusingtheexchangerateclosetothespotrateonthetransactiondatetoconverttheforeigncurrencyamountsintoRMBforaccountingpurposes.
Monetaryitemsdenominatedinforeigncurrenciesaretranslatedatthespotexchangerateonthebalancesheetdate.Anyexchangedifferencesarisingfromthis,exceptforthoserelatedtoforeigncurrencyborrowingsspecificallyincurredfortheacquisitionandconstructionofqualifyingassetsandtreatedundertheprincipleofcapitalizingborrowingcosts,arerecordedintheprofitorlossforthecurrentperiod.Non-monetaryitemsdenominatedinforeigncurrenciesandmeasuredathistoricalcostarestilltranslatedusingthespotexchangerateonthetransactiondate,withoutalteringtheirrecordedfunctionalcurrencyamount.Fornon-monetaryitemsdenominatedinforeigncurrenciesandmeasuredatfairvalue,theCompanyusesthespotexchangerateonthefairvaluedeterminationdatefortranslation.Thedifferencebetweenthetranslatedfunctionalcurrencyamountandtheoriginalfunctionalcurrencyamountistreatedaschangesinfairvalue(includingchangesinexchangerate)andrecordedintheprofitorlossforthecurrentperiodorrecognizedasothercomprehensiveincome.
2.TranslationofForeignCurrencyFinancialStatements
Assetsandliabilitiesinthebalancesheetaretranslatedusingthespotexchangerateonthebalancesheetdate.Forequityitems,exceptfor“retainedearnings,”otheritemsaretranslatedusingthespotexchangerateatthetransactiondate.Revenuesandexpensesintheincomestatementaretranslatedusingtheexchangerateclosetothespotrateonthetransactiondate.Theexchangedifferencesarisingfromtheabovetranslationarerecognizedinothercomprehensiveincome.
Whendisposingofforeignoperations,theforeigncurrencytranslationdifferencesrelatedtotheforeignoperationslistedinothercomprehensiveincomeinthebalancesheetwillbereclassifiedfromothercomprehensiveincometoprofitorlossinthedisposalperiod.Whentheproportionofforeign
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operationsequityisreducedbutcontrolovertheforeignoperationisnotlostduetopartialequityinvestmentdisposalorotherreasons,theforeigncurrencytranslationdifferencesrelatedtothedisposedportionoftheforeignoperationwillbeattributedtonon-controllinginterestsandnotreclassifiedtoprofitorloss.Whendisposingofpartoftheequityofaforeignoperationthatisanassociateorjointventure,theforeigncurrencytranslationdifferencesrelatedtotheforeignoperationwillbereclassifiedtoprofitorlossinproportiontothedisposaloftheforeignoperation.
11.FinancialInstruments
?Applicable□NotApplicable
TheCompanyrecognizesafinancialassetorfinancialliabilitywhenitbecomesapartytoafinancialinstrumentcontract.Theeffectiveinterestratemethodreferstothemethodofcalculatingtheamortizedcostofafinancialassetorafinancialliabilityandapportioningtheinterestincomeorinterestexpensesintoeachaccountingperiod.
Theeffectiveinterestrateistherateusedtodiscountestimatedfuturecashflowsduringtheexpectedlifeofafinancialassetorfinancialliabilitytothebookbalanceofthefinancialassetortheamortizedcostofthefinancialliability.Inthedeterminationoftheeffectiveinterestrate,theexpectedcashflowsareestimatedbasedonallcontractualtermsofthefinancialassetorfinancialliability(suchasprepayment,extension,calloptions,orsimilaroptions),excludingexpectedcreditlosses.
Theamortizedcostofafinancialassetorfinancialliabilityiscalculatedbydeductingtheprincipalrepaidfromtheinitiallyrecognizedamount,addingordeductingthecumulativeamortizedamountresultingfromthedifferencebetweentheinitiallyrecognizedamountandtheamountpayableatmaturityusingtheeffectiveinterestratemethod,andthendeductinganycumulativeprovisionforimpairmentlosses(applicableonlytofinancialassets).
4.Classification,Recognition,andMeasurementofFinancialAssets
TheCompanyclassifiesfinancialassetsintothefollowingthreecategoriesbasedonthebusinessmodelformanagingfinancialassetsandthecontractualcashflowcharacteristicsofthefinancialassets:
(1)Financialassetsmeasuredatamortizedcost.
(2)Financialassetsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome.
(3)Financialassetsmeasuredatfairvaluewithchangesrecordedintheprofitorlossforthecurrentperiod.
Financialassetsaremeasuredatfairvalueatinitialrecognition.However,ifaccountsreceivableornotesreceivablearisingfromsalesofgoodsorprovisionofservicesdonotcontainmaterialfinancingcomponentsorconsiderfinancingcomponentsnotexceedingoneyear,theyaremeasuredattransactionpriceforinitialmeasurement.
Forfinancialassetsmeasuredatfairvaluewithchangesrecordedintheprofitorlossforthecurrentperiod,relatedtransactioncostsaredirectlyrecordedintheprofitorlossforthecurrentperiod,whiletransactioncostsforothercategoriesoffinancialassetsarerecognizedintheirinitiallyrecognizedamounts.
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Thesubsequentmeasurementoffinancialassetsdependsontheirclassification,andallaffectedfinancialassetsarereclassifiedonlywhentheCompanychangesthebusinessmodelformanagingfinancialassets.
(1)Financialassetsclassifiedasbeingmeasuredatamortizedcost
Whenthecontractualtermsoffinancialassetsspecifythatcashflowsarisingonaspecificdatesolelycomprisepaymentsofprincipalandinterestbasedontheoutstandingprincipalamount,andthebusinessmodelformanagingthosefinancialassetsaimstocollectcontractualcashflows,theCompanyclassifiesthemasbeingmeasuredatamortizedcost.Financialassetsclassifiedasbeingmeasuredatamortizedcostincludemoneyfundsandcertainnotesreceivable,accountsreceivable,otherreceivables,debtinvestments,long-termreceivables,etcthataremeasuredatamortizedcost.
TheCompanyrecognizesinterestincomeonsuchfinancialassetsusingtheeffectiveratemethod,andconductssubsequentmeasurementatamortizedcost.Thegainsorlossesincurredfromtheirimpairment,derecognitionandmodificationarerecordedintheprofitorlossforthecurrentperiod.Exceptforcircumstancesmentionedbelow,theCompanydeterminesinterestincomebymultiplyingthebookbalanceofthefinancialassetsbytheeffectiveinterestrate:
1)Forpurchasedororiginatedfinancialassetswithcreditimpairment,theCompanycalculatestheirinterestincomebyapplyingtheiramortizedcostandtheeffectiveinterestrateadjustedforcreditsinceinitialrecognition.
2)Forpurchasedororiginatedfinancialassetswithoutcreditimpairmentincurredbutbecomingcreditimpairedinsubsequentperiods,theCompanycalculatestheirinterestincomebyapplyingtheiramortizedcostandtheeffectiveinterestrate.Ifthecreditriskofthefinancialinstrumentsimprovesinsubsequentperiodssuchthatthereisnolongeranycreditimpairment,theCompanycalculatestheinterestincomebymultiplyingthebookbalanceofthefinancialassetsbytheeffectiveinterestrate.
(2)Financialassetsclassifiedasbeingmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome
Whenthecontractualtermsoffinancialassetsspecifythatcashflowsarisingonaspecificdateconsistsolelyofpaymentsofprincipalandinterestbasedontheoutstandingprincipalamount,andthebusinessmodelformanagingsuchfinancialassetaimstobothcollectcontractualcashflowsandsellthefinancialassets,theCompanycategorizesthefinancialassetsasbeingmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome.
TheCompanyrecognizesinterestincomeonsuchfinancialassetsusingtheeffectiveratemethod.Exceptforinterestincome,impairmentlosses,andexchangedifferencesthatarerecordedintheprofitorlossforthecurrentperiod,allotherchangesinfairvaluearerecognizedinothercomprehensiveincome.Whensuchfinancialassetsarederecognized,thecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredfromothercomprehensiveincomeandrecordedintheprofitorlossforthecurrentperiod.
NotesreceivableandaccountsreceivablemeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincomearepresentedasReceivablesFinancing,andotherfinancialassetsofthis
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categoryarepresentedasotherdebtinvestments.Amongthem,otherdebtinvestmentsduewithinoneyearfromthebalancesheetdatearepresentedasnon-currentassetsduewithinoneyear,andotherdebtinvestmentsoriginallyduewithinoneyeararepresentedasothercurrentassets.
(3)FinancialassetsdesignatedasbeingmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincomeUponinitialrecognition,theCompanymayirrevocablydesignatenon-tradingequityinstrumentinvestmentsasfinancialassetsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome,onasinglefinancialassetbasis.Changesinfairvalueofsuchfinancialassetsarerecognizedinothercomprehensiveincomewithouttheneedofprovisionforimpairmentreserves.Whenthesefinancialassetsarederecognized,thecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredfromothercomprehensiveincomeandrecognizedinretainedearnings.DuringtheperiodinwhichtheCompanyholdstheseequityinstrumentinvestments,whentheCompany'srighttoreceivedividendshasbeenestablishedanditisprobablethateconomicbenefitsassociatedwiththedividendswillflowtotheCompany,andtheamountofdividendscanbereliablymeasured,dividendincomeisrecognizedandrecordedintheprofitorlossforthecurrentperiod.TheCompanypresentsthesefinancialassetsundertheotherequityinstrumentinvestmentitem.Equityinstrumentinvestmentsareclassifiedasfinancialassetsmeasuredatfairvaluewithchangesrecordedintheprofitorlossforthecurrentperiodiftheymeetanyofthefollowingconditions:theprimaryobjectiveofacquiringthefinancialassetsisfornear-termsale;atinitialrecognition,theyarepartoftheidentifiablefinancialassetinstrumentportfolioundercentralizedmanagement,andthereisobjectiveevidenceofashort-termprofitpattern;theyarederivativeinstruments(excludingthosemeetingthedefinitionslistedinfinancialguaranteecontractsandthosedesignatedaseffectivehedginginstruments).
(4)Financialassetsclassifiedasbeingmeasuredatfairvaluewithchangesrecordedintheprofitorlossforthecurrentperiod
Financialassetsthatdonotmeettheconditionsforclassificationasbeingmeasuredatamortizedcostorfairvaluewithchangesrecognizedinothercomprehensiveincome,andthatarenotdesignatedasbeingmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome,areclassifiedasfinancialassetsmeasuredatfairvaluewithchangesrecordedintheprofitorlossforthecurrentperiod.
TheCompanysubsequentlymeasuresthesefinancialassetsatfairvalue,withgainsorlossesarisingfromchangesinfairvalueandincomefromdividendsandinterestassociatedwiththesefinancialassetsrecordedintheprofitorlossforthecurrentperiod.
TheCompanypresentsthesefinancialassetsundertheitemsoffinancialassetsheldfortradingandothernon-currentfinancialassetsbasedontheirliquidity.
(5)Financialassetsdesignatedasbeingmeasuredatfairvaluewithchangesrecordedintheprofitorlossforthecurrentperiod
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Atthetimeofinitialrecognition,theCompanymayirrevocablydesignatefinancialassetsasbeingmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiodonasinglefinancialassetbasisinordertoeliminateorsignificantlyreduceaccountingmismatches.
Ifahybridcontractcontainsoneormoreembeddedderivativeinstrumentsanditsmaincontractdoesnotfallundertheaforementionedfinancialassets,theCompanymaydesignateitasawholeasafinancialinstrumentmeasuredatfairvaluewithchangesrecordedintheprofitorlossforthecurrentperiod.However,thefollowingexceptionsapply:
1)Theembeddedderivativeinstrumentswillnotleadtomaterialchangestothecashflowsofthehybridcontract.
2)Whendeterminingwhetherasimilarhybridcontractneedstobesplit,itisalmostunnecessarytoanalyzetodeterminethattheembeddedderivativeinstrumentsthereinshouldnotbesplit.Forexample,incaseswheretheprepaymentrightforloansisembedded,allowingtheholdertorepaytheloanatanamountclosetotheamortizedcost,thisprepaymentrightdoesnotneedtobesplit.
TheCompanysubsequentlymeasuressuchfinancialassetsatfairvalue,withgainsorlossesarisingfromchangesinfairvalueandincomefromdividendsandinterestassociatedwiththesefinancialassetsrecordedintheprofitorlossforthecurrentperiod.
TheCompanypresentsthesefinancialassetsundertheitemsoffinancialassetsheldfortradingandothernon-currentfinancialassetsbasedontheirliquidity.
5.Classification,RecognitionandMeasurementofFinancialLiabilities
Atthetimeofinitialrecognition,theCompanyclassifiesthefinancialinstrumentsoritscomponentsasfinancialliabilitiesorequityinstrumentsbasedonthecontractualtermsofthefinancialinstrumentsandtheirunderlyingeconomicsubstance,ratherthansolelyonlegalform,takingintoconsiderationthedefinitionsoffinancialinstrumentsandequityinstruments.Atthetimeofinitialrecognition,financialliabilitiesareclassifiedas:Financialassetsmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiod,otherfinancialassets,andderivativeinstrumentsdesignatedaseffectivehedginginstruments.
Atthetimeofinitialrecognition,financialliabilitiesaremeasuredatfairvalue.Forfinancialliabilitiesmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiod,relatedtransactioncostsaredirectlyrecordedintheprofitorlossforthecurrentperiod,whileforothertypesoffinancialliabilities,relatedtransactioncostsarerecognizedintheinitiallyrecognizedamount.
Subsequentmeasurementoffinancialliabilitiesdependsontheirclassification:
(1)Financialliabilitiesmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiod:
Suchfinancialliabilitiesincludefinancialliabilitiesheldfortrading(includingderivativeinstrumentsfallingunderfinancialliabilities)andfinancialliabilitiesdesignatedasbeingmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiod.
Financialliabilitiesareclassifiedasfinancialliabilitiesheldfortradingiftheymeetanyofthe
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followingconditions:Theprimarypurposeofholdingtherelevantfinancialliabilitiesisforsaleorrepurchaseinthenearterm;therelevantfinancialliabilitiesarepartofidentifiablefinancialinstrumentportfolioundercentralizedmanagementandthereisobjectiveevidencethattheenterpriseadoptsashort-termprofit-takingmodeinthenearterm;therelevantfinancialliabilitiesfallunderderivativeinstruments,exceptthosespecificallydesignatedandeffectiveashedginginstrumentsandmeetingtherequirementsspecifiedinthefinancialguaranteecontracts.Financialliabilitiesheldfortrading(includingderivativeinstrumentsfallingunderfinancialliabilities)aremeasuredatfairvalueinthesubsequentperiodsandallchangesinfairvalue,exceptforthoseassociatedwithhedgeaccounting,arerecordedintheprofitorlossforthecurrentperiod.Atthetimeofinitialrecognition,forthepurposeofprovidingmorepertinentaccountinginformation,theCompanyirrevocablydesignatesfinancialliabilitiesmeetinganyofthefollowingconditionsasfinancialliabilitiesmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiod:
1)Beingabletoeliminateorsignificantlyreduceaccountingmismatches.
2)Manageandassessportfoliosoffinancialliabilitiesorportfoliosoffinancialassetsandliabilitiesbasedonfairvalueandinaccordancewiththeenterpriseriskmanagementorinvestmentpoliciesspecifiedintheformalwrittendocumentation,andreporttokeymanagementpersonnelwithintheCompanybasedonthemanagementandassessmentoutcomes.
TheCompanysubsequentlymeasuressuchfinancialliabilitiesatfairvalue.Allchangesinfairvalue,excludingthoseresultingfromfluctuationsintheCompany’sowncreditriskandrecordedinothercomprehensiveincome,arerecordedintheprofitorlossforthecurrentperiod.UnlessrecordingchangesinfairvalueresultingfromfluctuationsintheCompany'sowncreditriskinothercomprehensiveincomewouldresultinorexacerbateaccountingmismatchesintheprofitorloss,theCompanywillrecordallchangesinfairvalue(includingtheamountaffectedbychangesinitsowncreditrisk)intotheprofitorlossforthecurrentperiod.
(2)Otherfinancialliabilities
TheCompanyclassifiesfinancialliabilities,excludingthoselistedbelow,asbeingmeasuredatamortizedcost,subsequentlymeasuresthematamortizedcostusingtheeffectiveratemethod,andrecordsthegainsorlossesarisingfromderecognitionoramortizationintotheprofitorlossforthecurrentperiod:
1)Financialliabilitiesmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiod.
2)Financialliabilitiesarisingfromthefinancialassettransferthatdoesnotmeettheconditionsforderecognitionorthecontinuedinvolvementinthetransferredfinancialassets.
3)Financialguaranteecontractsnotfallingunderthefirsttwoscenariosoutlinedinthisarticle,andloancommitmentsmadeatinterestratesbelowmarketratesandnotfallingwithinscenario1)inthisarticle.
Financialguaranteecontractsrefertocontractswheretheissuerisobligatedtocompensatethe
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contractholderforaspecifiedamountifaspecificdebtorisunabletopayitsdebtinaccordancewiththeoriginalormodifieddebtinstrumenttermswhendue.Financialguaranteecontractsnotdesignatedasfinancialliabilitiesmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiodaremeasuredatthelossreserveamountortheinitiallyrecognizedamountlessthecumulativeamortizationamountwithintheguaranteeperiod,whicheverishigher,aftertheinitialrecognition.
6.DerecognitionofFinancialAssetsandFinancialLiabilities
(1)Financialassetsarederecognizedandwritten-offfromtheaccountsandthebalancesheet,whenoneofthefollowingconditionsismet:
1)Thecontractualrighttoreceivecashflowsfromafinancialassetisterminated.
2)Thefinancialassethasbeentransferred,andthetransfermeetsthecriteriaforderecognitionoffinancialassets.
(2)Conditionsforderecognitionoffinancialliabilities
Ifthepresentobligationofafinancialliability(orpartthereof)hasbeendischarged,thefinancialliability(orpartthereof)shouldbederecognized.
IftheCompanyentersintoanagreementwiththelendertoreplacetheoriginalfinancialliabilitywithanewone,andthetermsofthenewfinancialliabilityaresubstantiallydifferentfromthoseoftheoriginal,orsubstantialmodificationsaremadetothetermsoftheoriginalfinancialliability(orpartthereof),theoriginalfinancialliabilityshouldbederecognized,andsimultaneouslyanewfinancialliabilityshouldberecognized.Thedifferencebetweenthebookvalueandtheconsiderationpaid(includingnon-cashassetstransferredoutorliabilitiesassumed)shouldberecordedintheprofitorlossforthecurrentperiod.
WhentheCompanyrepurchasesaportionofitsfinancialliabilities,itshouldallocatetheoverallbookvalueofthefinancialliabilitybasedontheproportionsoftheportionrequiringcontinuedrecognitionandtheportionrequiringderecognitionintheoverallfairvalueontheacquisitiondate.Thedifferencebetweenthebookvalueallocatedtotheportionrequiringderecognitionandtheconsiderationpaid(includingnon-cashassetstransferredoutorliabilitiesassumed)shouldberecordedintheprofitorlossforthecurrentperiod.
7.RecognitionBasisandMeasurementMethodforTransferofFinancialAssets
WhentheCompanytransfersfinancialassets,itassessesthelevelofrisksandrewardsretainedintheownershipofthefinancialassetsanddealswiththefollowingsituationsseparately:
(1)IftheCompanytransfersalmostallrisksandrewardsrelatedtotheownershipofthefinancialassets,itshouldderecognizethefinancialassetsandseparatelyrecognizetherightsandobligationsarisingfromthetransferorretentionasassetsorliabilities.
(2)IftheCompanyretainsalmostallrisksandrewardsrelatedtotheownershipofthefinancialassets,itshouldcontinuetorecognizethefinancialassets.
(3)IftheCompanyneithertransfersnorretainsalmostallrisksandrewardsrelatedtotheownershipofthefinancialassets(i.e.,insituationsotherthanthosespecifiedin(1)and(2)above),it
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dealswiththefollowingsituationsseparatelybasedonwhetheritretainscontrolofthefinancialassets:
1)IftheCompanydoesnotretaincontroloverthefinancialassets,itshouldderecognizethefinancialassetsandseparatelyrecognizetherightsandobligationsarisingfromthetransferorretentionasassetsorliabilities.
2)IftheCompanyretainscontroloverthefinancialassets,itshouldcontinuetorecognizetherelevantfinancialassetsbasedontheextentofitscontinuedinvolvementinthetransferredfinancialassetsandcorrespondinglyrecognizetherelevantfinancialliabilities.TheextentofcontinuedinvolvementinthetransferredfinancialassetsreferstotheextenttowhichtheCompanybearstherisksorrewardsrelatedtothetransferredfinancialassets.
Whendeterminingwhethertheconditionsforderecognitionoffinancialassetsaremet,theCompanyappliestheprincipleofsubstanceoverform.TheCompanydistinguishesthetransferoffinancialassetsaseithercompleteorpartialtransfer.
(1)Whenthecompletetransferoffinancialassetsmeetstheconditionsforderecognition,thedifferencebetweenthefollowingtwoamountsshouldberecordedintheprofitorlossforthecurrentperiod:
1)Thebookvalueofthetransferredfinancialassetsonthederecognitiondate.
2)Theconsiderationreceivedforthetransferoffinancialassets,plusthecumulativefairvaluechangespreviouslyrecognizedinothercomprehensiveincomethatcorrespondtothederecognizedportion(financialassetsinvolvingtransferaremeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome).
(2)Whenaportionoffinancialassetsistransferredandthetransferredportionmeetstheconditionsforderecognitionasawhole,thebookvalueofthefinancialassetsasawholebeforethetransferisapportionedbetweenthederecognizedportionandthecontinuouslyrecognizedportion(inthiscase,anyservicingassetsretainedshouldbetreatedaspartofthecontinuouslyrecognizedfinancialassets)basedontheirrelativefairvaluesonthetransferdate.Thedifferencebetweenthefollowingtwoamountsisrecordedintheprofitorlossforthecurrentperiod:
1)Thebookvalueofthederecognizedportiononthederecognitiondate.
2)Theconsiderationreceivedforthederecognizedportion,plusthecumulativefairvaluechangespreviouslyrecognizedinothercomprehensiveincomethatcorrespondtothederecognizedportion(financialassetsinvolvingtransferaremeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome).
Whenthetransferoffinancialassetsdoesnotmeettheconditionsforderecognition,theCompanycontinuestorecognizethefinancialassets,andrecognizestheconsiderationreceivedasafinancialliability.
8.DeterminationMethodforFairValueofFinancialAssetsandFinancialLiabilities
Forfinancialassetsorfinancialliabilitieswithsupportbyactivemarkets,theirfairvaluesaredeterminedbasedonquotedpricesinthosemarkets,unlesstherearelock-upperiodsspecifictothem.Forfinancialassetswithspecificlock-upperiods,theirfairvaluesaredeterminedbydeductingthe
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amountofcompensationdemandedbymarketparticipantsforbearingtheriskofbeingunabletosellthefinancialassetsinthepublicmarketduringthespecifiedperiodfromthequotedpricesinactivemarkets.Quotedpricesinactivemarketsincludethosethatareeasilyandregularlyobtainablefromexchanges,dealers,brokers,industrygroups,pricingagencies,orregulatoryauthoritiesandrepresentmarkettransactionsthatactuallyandfrequentlyoccuronafairtradingbasis.
Forfinancialassetsinitiallyacquiredorderivedorfinancialliabilitiesassumed,theirfairvaluesshouldbedeterminedbasedonthetradingpricesinthemarket.Forfinancialassetsorliabilitieswithoutsupportbyactivemarkets,theirfairvaluesaredeterminedusingvaluationtechniques.Duringvaluation,theCompanyemploysvaluationtechniquesthatareapplicableundercurrentcircumstancesandsupportedbysufficientavailabledataandotherinformation,selectsinputvaluesconsistentwiththecharacteristicsofassetsorliabilitiesthatmarketparticipantswouldconsiderintransactionsinvolvingsuchassetsorliabilitiesandprioritizestheuseofrelevantobservableinputvalueswheneverpossible.Whenit'snotfeasibleorpracticaltoobtainrelevantobservableinputvalues,unobservableinputvaluesareutilizedinstead.
9.ImpairmentofFinancialInstruments
TheCompanyaccountsforimpairmentandrecognizesprovisionforlossesbasedontheexpectedcreditlossesforfinancialassetsmeasuredatamortizedcost,financialassetsclassifiedasbeingmeasuredatfairvaluewithchangesinfairvaluerecognizedinothercomprehensiveincome,leasereceivables,contractassets,loancommitmentsnotfallingunderfinancialliabilitiesmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiod,andfinancialliabilitiesnotmeasuredatfairvaluewithchangesinfairvaluerecordedintheprofitorlossforthecurrentperiod,andfinancialguaranteecontractsforfinancialliabilitiesarisingfromthetransferoffinancialassetsthatdonotmeetthederecognitioncriteriaorthecontinuedinvolvementinthetransferredfinancialassets.
Expectedcreditlossesrefertotheweightedaverageofcreditlossesonfinancialinstrumentsweightedbytheriskofdefault.CreditlossesrepresentthedifferencebetweenallcontractualcashflowsdiscountedbytheCompanyattheoriginaleffectiveinterestrateandreceivablebytheCompanyaccordingtothecontractandallcashflowsexpectedtobereceivedbytheCompany,namely,thepresentvalueofallcashshortfalls.ForfinancialassetspurchasedororiginatedbytheCompanywithincurredcreditimpairment,impairmentisdiscountedattheeffectiveinterestrateadjustedforcreditofsuchfinancialassets.
TheCompanymeasurestheprovisionforlossesonallcontractassets,notesreceivableandaccountsreceivablederivedfromtransactionssubjecttorevenuestandards,aswellasleasereceivables/financingleasereceivables/operatingleasereceivablesderivedfromtransactionssubjecttoleasestandards,atanamountequaltotheexpectedcreditlossesovertheentireremainingterm.
Forfinancialassetspurchasedororiginatedwithincurredcreditimpairment,onlythecumulativechangesinexpectedcreditlossesovertheentireremainingtermsinceinitialrecognitionarerecognizedastheprovisionforlossesonthebalancesheetdate.Oneachbalancesheetdate,thechangesin
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expectedcreditlossesovertheentireremainingtermarerecognizedasimpairmentlossesorgainstoberecordedintheprofitorlossforthecurrentperiod.Eveniftheexpectedcreditlossesovertheentireremainingtermdeterminedonthebalancesheetdatearelowerthantheexpectedcreditlossesreflectedbytheestimatedcashflowsatthetimeofinitialrecognition,thefavorablechangesinexpectedcreditlossesarealsorecognizedasimpairmentgains.
Exceptfortheaforementionedfinancialassetsmeasuredusingsimplifiedmeasurementmethodsandpurchasedororiginatedfinancialassetswithincurredcreditimpairment,theCompanyassessesthecreditriskofrelevantfinancialinstrumentsoneachbalancesheetdatetodeterminewhetherithassignificantlyincreasedsinceinitialrecognition,andmeasurestheprovisionforlossesandrecognizesexpectedcreditlossesandtheirchangesaccordingtothefollowingcircumstances:
(1)IfthecreditriskofthefinancialinstrumenthasnotsignificantlyincreasedsinceinitialrecognitionandisinStage1,theprovisionforlossesshouldbemeasuredatanamountequaltotheexpectedcreditlosseswithinthenext12monthsforthefinancialinstrument,andinterestincomeshouldbecalculatedbasedonthebookbalanceandtheeffectiveinterestrate.
(2)Ifthecreditriskofthefinancialinstrumenthassignificantlyincreasedsinceinitialrecognitionbuthasnotincurredcreditimpairment,itisinStage2.Theprovisionforlossesshouldbemeasuredatanamountequaltotheexpectedcreditlossesovertheentireremainingtermforthefinancialinstrument,andinterestincomeshouldbecalculatedbasedonthebookbalanceandtheeffectiveinterestrate.
(3)Ifthefinancialinstrumenthasincurredcreditimpairmentsinceinitialrecognition,itisinStage
3.TheCompanyshouldmeasuretheprovisionforlossesatanamountequaltotheexpectedcreditlossesovertheentireremainingtermforthefinancialinstrument,andcalculateinterestincomebasedontheamortizedcostandtheeffectiveinterestrate.
Theincreasedorreversedamountoftheprovisionforcreditlossesoffinancialinstrumentsisrecognizedasimpairmentlossesorgainstoberecordedintheprofitorlossforthecurrentperiod.Forfinancialassets,excludingthoseclassifiedasbeingmeasuredatfairvaluewithchangesinfairvaluerecordedinothercomprehensiveincome,theprovisionforcreditlossesshouldbeusedtooffsettheirbookbalance.Forfinancialassetsclassifiedasbeingmeasuredatfairvaluewithchangesrecordedinothercomprehensiveincome,theCompanyrecognizestheirprovisionforcreditlossesinothercomprehensiveincomewithoutreducingtheirbookvaluepresentedinthebalancesheet.
IncaseswheretheCompanyhadmeasuredtheprovisionforlossesatanamountequivalenttotheexpectedcreditlossesovertheentireremainingtermofafinancialinstrumentduringthepreviousaccountingperiod,butasofthecurrentbalancesheetdate,thefinancialinstrumentnolongerqualifiesundertheconditionofasignificantincreaseincreditrisksinceinitialrecognition,theCompanyshouldmeasuretheprovisionforlossesofthefinancialinstrumentonthecurrentbalancesheetdateatanamountequivalenttotheexpectedcreditlosseswithinthenext12months,withthereversedamountofimpairmentlossesarisingtherefromasimpairmentgainstoberecordedintheprofitorlossforthecurrentperiod.
(1)Significantincreaseincreditrisk
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TheCompanyutilizesreasonableandsubstantiatedforward-lookinginformationtoassesswhetherthecreditriskoffinancialinstrumentshassignificantlyincreasedsinceinitialrecognition,bycomparingtheriskofdefaultoccurringonthebalancesheetdatewiththatontheinitialrecognitiondate.Forfinancialguaranteecontracts,theCompanyconsidersthedateonwhichitbecomesthepartywhomakesirrevocablecommitmentastheinitialrecognitiondatewhenapplyingtheimpairmentprovisionsforfinancialinstruments.TheCompanywillconsiderthefollowingfactorsinassessingwhetherthecreditriskhassignificantlyincreased:
1)Whethertherehasbeenasignificantchangeintheoperatingperformanceofthedebtor,actualorexpected;
2)Whethertherehasbeenasignificantadversechangeintheregulatory,economic,ortechnologicalenvironmentinwhichthedebtoroperates;
3)Whethertherehasbeenasignificantchangeinthevalueofcollateralservingasdebtsecurityorinthequalityofguaranteesorcreditenhancementsprovidedbyathirdparty,whichisexpectedtoreducetheeconomicincentivesforthedebtortorepayasperthecontractualtermsoraffecttheprobabilityofdefault;
4)Whethertherehasbeenasignificantchangeintheexpectedperformanceandrepaymentbehaviorofthedebtor;
5)WhethertherehavebeenanychangesintheCompany'screditmanagementmethodsforfinancialinstruments.
If,asofthebalancesheetdate,theCompanydeterminesthatafinancialinstrumentexhibitsonlylowcreditrisk,itassumesthatthecreditriskofthefinancialinstrumenthasnotsignificantlyincreasedsinceinitialrecognition.Ifthefinancialinstrumentcarrieslowdefaultrisk,theborrowerdemonstratesastrongabilitytomeetitscontractualcashflowobligationsintheshortterm,andevenifthereareadversechangesintheeconomicandoperatingenvironmentoveranextendedperiod,itdoesnotnecessarilyimpairtheborrower'sabilitytofulfillitscontractualcashflowobligations,thenthefinancialinstrumentisconsideredtocarrylowcreditrisk.
(2)Financialassetswithcreditimpairment
Afinancialassetisdeemedtohavebecomecreditimpairedintheoccurrenceofoneormoreeventsthatareexpectedtohaveanadverseimpactonitsfuturecashflows.Evidencesforcreditimpairmentoffinancialassetsincludethefollowingobservableinformation:
1)Significantfinancialdifficultiesexperiencedbytheissuerordebtor;
2)Breachofcontractbythedebtor,suchasdefaultordelayinpaymentofinterestorprincipal,etc.;
3)Concessionsgrantedbythecreditortothedebtorforeconomicorcontractualreasonsrelatedtothedebtor'sfinancialdifficulties,whichwouldnototherwisebemadeunderanyothercircumstances;
4)Thedebtorislikelytogobankruptorundergootherfinancialrestructuring;
5)Financialdifficultiesexperiencedbytheissuerordebtorresultinthedisappearanceofanactivemarketforthefinancialasset;
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6)Purchasingororiginatingafinancialassetatasignificantdiscount,whichreflectstheoccurrenceofcreditlosses.Creditimpairmentoffinancialassetsmayresultfromthecombinedeffectofmultipleeventsandmaynotnecessarilybeattributabletoindividuallyidentifiableevents.
(3)Determinationofexpectedcreditlosses
TheCompanydeterminesexpectedcreditlossesonfinancialinstrumentsbasedonindividualandcollectiveassessments.Whenassessingexpectedcreditlosses,theCompanyshouldconsiderreasonableandsubstantiatedinformationregardingpastevents,currentconditions,andforecastsoffutureeconomicconditions.
TheCompanyclassifiesfinancialinstrumentsintodifferentportfoliosbasedontheircommoncreditriskcharacteristics.CommoncreditriskcharacteristicsusedbytheCompanyinclude:typesoffinancialinstruments,agingcategories,etc.Theindividualassessmentcriteriaforandcollectivecreditriskcharacteristicsofrelevantfinancialinstrumentsaredetailedintheaccountingpoliciesforthosefinancialinstruments.
TheCompanydeterminesexpectedcreditlossesonrelevantfinancialinstrumentsasfollows:
1)Forfinancialassets,creditlossesrepresentthepresentvalueofthedifferencebetweenthecontractualcashflowsreceivablebytheCompanyandthecashflowsexpectedtobereceived.
2)Forleasereceivables,creditlossesrepresentthepresentvalueofthedifferencebetweenthecontractualcashflowsreceivablebytheCompanyandthecashflowsexpectedtobereceived.
3)Forfinancialguaranteecontracts,creditlossesrepresentthepresentvalueoftheestimatedpaymentsthattheCompanywouldmaketocompensatethecontractholderforthecreditlossesincurredminustheamountsexpectedtobereceivedfromthecontractholder,thedebtor,oranyotherparty.
4)Forfinancialassetsthathavebecomecreditimpairedasofthebalancesheetdatebutwerenotcreditimpairedatinitialrecognitionororiginatedascreditimpaired,creditlossesrepresentthedifferencebetweenthebookvalueofthefinancialassetandthepresentvalueofestimatedfuturecashflowsdiscountedattheoriginaleffectiveinterestrate.
ThefactorsreflectedintheCompany'smethodformeasuringexpectedcreditlossesonfinancialinstrumentsinclude:unbiasedprobability-weightedaverageamountsdeterminedbyevaluatingarangeofpossibleoutcomes;thetimevalueofmoney;reasonableandsubstantiatedinformationregardingpastevents,currentconditions,andforecastsoffutureeconomicconditionsthatareavailableonthebalancesheetdatewithoutincurringunduecostoreffort.
(4)Write-downoffinancialassets
WhentheCompanynolongerreasonablyexpectstorecoverallorpartofthecontractualcashflowsofafinancialasset,thebookbalanceofthatfinancialassetshouldbewrittendowndirectly.Suchwrite-downconstitutesthederecognitionoftherelatedfinancialasset.
10.OffsettingofFinancialAssetsandFinancialLiabilities
Financialassetsandfinancialliabilitiesareseparatelypresentedinthebalancesheetwithoutoffsetting.However,thenetamountafteroffsettingispresentedinthebalancesheetifallofthe
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followingconditionsaremet:
(1)TheCompanyholdsalegalrighttooffsetrecognizedamounts,andsuchrightiscurrentlyenforceable;
(2)TheCompanyintendstosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously.
12.NotesReceivable
?Applicable□NotApplicable
CategoriesofPortfoliosforWhichBadDebtProvisionsAreMadeBasedonCreditRiskCharacteristicsandtheBasisforTheirDetermination?Applicable□NotApplicable
ThemethodfordeterminingtheexpectedcreditlossesofnotesreceivableandtherelatedaccountingtreatmentadoptedbytheCompanyaredetailedinSectionV,SignificantAccountingPoliciesandEstimates,item(11)6.ImpairmentofFinancialInstruments.
Whenthereisinsufficientevidencetoassessexpectedcreditlossesattheindividualinstrumentlevelatareasonablecost,theCompanyreferstohistoricalcreditlossexperience,takingintoconsiderationcurrentconditionsandjudgmentsaboutfutureeconomicconditions,toclassifynotesreceivableintoseveralportfoliosbasedoncreditriskcharacteristicsandthencalculateexpectedcreditlossesbasedonaportfoliobasis.Thebasisfordeterminingtheportfoliosisasfollows:
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PortfolioName
| PortfolioName | BasisforDeterminingPortfolios | ProvisionMethod |
| BankAcceptanceBillPortfolio1 | Theissuerexhibitsahighcreditrating,nohistoryofdefaultonbills,averylowcreditlossrisk,andastrongabilitytofulfillitscashflowobligationsunderpaymentcontracts. | Refertohistoricalcreditlossexperienceandtakeintoconsiderationcurrentconditionsandforecastsoffutureeconomicconditionstocalculateexpectedcreditlossesthroughdefaultriskexposureandtheexpectedcreditlossrateovertheentireduration. |
| BankAcceptanceBillPortfolio2 | AcceptorsotherthanthoseinBankAcceptanceBillPortfolio1arebank-typefinancialinstitutions. | Refertohistoricalcreditlossexperienceandtakeintoconsiderationcurrentconditionsandforecastsoffutureeconomicconditionstocalculateexpectedcreditlossesthroughdefaultriskexposureandtheexpectedcreditlossrateovertheentireduration. |
| CommercialAcceptanceBillPortfolio | Acceptorsarefinancialcompaniesornon-bankfinancialinstitutionsorcorporateunits. | Refertohistoricalcreditlossexperienceandtakeintoconsiderationcurrentconditionsandforecastsoffutureeconomicconditionstoprepareatablecomparingtheagingofaccountsreceivablewiththeexpectedcreditlossrateovertheentireduration(similartoaccountsreceivable)tocalculateexpectedcreditlosses. |
AgingCalculationMethodforDeterminingPortfoliosofCreditRiskCharacteristicsBasedonAgingAnalysis
?Applicable□NotApplicable
Refertohistoricalcreditlossexperienceandtakeintoconsiderationcurrentconditionsandforecastsoffutureeconomicconditionstoprepareatablecomparingtheagingofaccountsreceivablewiththeexpectedcreditlossrateovertheentireduration(similartoaccountsreceivable)tocalculateexpectedcreditlosses.
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CriteriaforIndividualProvisionforBadDebtsattheIndividualLevel
?Applicable□NotApplicable
Fornotesreceivablewithsignificantlydifferentcreditrisksandportfoliocreditrisks,theCompanyprovisionsforexpectedcreditlossesonanindividual-itembasis.TheCompanyseparatelydeterminesthecreditlossesonnotesreceivablewherethereissufficientevidencetoassessexpectedcreditlossesattheindividualinstrumentlevelatareasonablecost.13AccountsReceivable
?Applicable□NotApplicable
PortfolioCategoriesandDeterminationBasisforProvisionforBadDebtsbasedonCreditRiskCharacteristics?Applicable□NotApplicable
FortheCompany’smethodsfordeterminationandaccountingtreatmentofexpectedcreditlossesonaccountsreceivable,pleaserefertoparagraph(11)6-ImpairmentofFinancialInstrumentsinSectionV-SignificantAccountingPoliciesandEstimates.Whenthereisinsufficientevidencetoassessexpectedcreditlossesattheindividualinstrumentlevelatareasonablecost,theCompanyreferstohistoricalcreditlossexperience,takingintoconsiderationcurrentconditionsandjudgmentsaboutfutureeconomicconditionstoclassifyaccountsreceivableintoseveralcategoriesbasedoncreditriskcharacteristicsandthencalculateexpectedcreditlossesonaportfoliobasis.Thebasisfordeterminingthecategoriesisasfollows:
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PortfolioName
| PortfolioName | BasisforDeterminingPortfolios | ProvisionMethod |
| AgingAnalysisPortfolio | Thisportfolioutilizestheagingofreceivablesasacreditriskcharacteristic. | Refertohistoricalcreditlossexperienceandtakeintoconsiderationcurrentconditionsandforecastsoffutureeconomicconditions,tomeasuretheprovisionforbaddebts. |
| RelatedPartyPortfoliowithintheConsolidationScope | Thisportfolioutilizestherelatedpartyportfoliowithintheconsolidationscopeasacreditriskcharacteristic. | Refertohistoricalcreditlossexperienceandtakeintoconsiderationcurrentconditionsandforecastsoffutureeconomicconditions,tomeasuretheprovisionforbaddebts. |
AgingCalculationMethodforDeterminingPortfoliosofCreditRiskCharacteristicsBasedonAgingAnalysis?Applicable□NotApplicable
Belowisthetableforthecomparisonbetweenagingandexpectedcreditlossratesofagingportfolios:
| Aging | ExpectedCreditLossRatesofAccountsReceivable(%) |
| Within1year | 5 |
| 1－2years | 10 |
| 2－3years | 30 |
| 3－4years | 50 |
| 4－5years | 80 |
| Over5years | 100 |
Theagingofaccountsreceivableiscalculatedonafirst-in,first-outbasis.CriteriaforIdentifyingIndividualProvisionsforBadDebtsonanIndividual-itemBasis?Applicable□NotApplicable
Foraccountsreceivablewithsignificantlydifferentcreditrisksandportfoliocreditrisks,theCompanyprovisionsforexpectedcreditlossesonanindividual-itembasis.TheCompanyseparately
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determinesthecreditlossesonaccountsreceivablewherethereissufficientevidencetoassessexpectedcreditlossesattheindividualinstrumentlevelatareasonablecost.
14.ReceivablesFinancing
?Applicable□NotApplicablePortfolioCategoriesandDeterminationBasisforProvisionforBadDebtsbasedonCreditRiskCharacteristics?Applicable□NotApplicable
NotesreceivableandaccountsreceivablemeasuredatfairvaluewithchangesrecordedinothercomprehensiveincomearepresentedasReceivablesFinancingiftheirmaturityiswithinoneyear(includingoneyear)fromtheinitialrecognitiondate;andpresentedasotherdebtinvestmentiftheirmaturityisoveroneyearfromtheinitialrecognitiondate.TherelevantaccountingpoliciesaredetailedinSectionV,SignificantAccountingPoliciesandEstimates,item(11).FortheCompany’smethodsfordeterminationandaccountingtreatmentofexpectedcreditlossesonReceivablesFinancing,pleaserefertoparagraph(11)6-ImpairmentofFinancialInstrumentsinSectionV-SignificantAccountingPoliciesandEstimates.Whenthereisinsufficientevidencetoassessexpectedcreditlossesattheindividualinstrumentlevelatareasonablecost,theCompanyreferstohistoricalcreditlossexperience,takingintoconsiderationcurrentconditionsandjudgmentsoffutureeconomicconditions,toclassifyReceivablesFinancingintoseveralportfoliosbasedoncreditriskcharacteristicsandcalculateexpectedcreditlossesonaportfoliobasis.Thebasisfordeterminingportfoliosisasfollows:
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PortfolioName
| PortfolioName | BasisforDeterminingPortfolios | ProvisionMethod |
| AccountsReceivable | ThisportfolioutilizestheagingofReceivablesFinancingasacreditriskcharacteristic | TheCompanyusesagingtoassesstheexpectedcreditlossesofthistypeofportfolio.Thisportfoliocarriessimilarriskcharacteristics,andaginginformationcanreflecttheabilityofthisportfoliotopaywhenaccountsreceivablemature.Asofthebalancesheetdate,theCompanyreferstohistoricalcreditlossexperienceandtakesintocurrentconditionsandforecastsoffutureeconomicconditionstoatablecomparingtheagingofaccountsreceivablewiththeexpectedcreditlossrateovertheentireduration(similartoaccountsreceivable)tocalculateexpectedcreditlosses. |
| NotesReceivable | Thisportfolioconsistsofnotesissuedbyentitieswithhighcreditratings,withnohistoryofnotedefaultsandverylowcreditlossrisks,andwithstrongabilitytofulfilltheircashflowobligationsunderpaymentcontractsintheshortterm | Refertohistoricalcreditlossexperienceandtakeintoconsiderationcurrentconditionsandforecastsoffutureeconomicconditionstocalculateexpectedcreditlossesthroughdefaultriskexposureandtheexpectedcreditlossrateovertheentireduration. |
AgingCalculationMethodforDeterminingPortfoliosofCreditRiskCharacteristicsBasedonAgingAnalysis
?Applicable□NotApplicable
Withreferencetohistoricalcreditlossexperience,andtakingintoaccountcurrentconditionsaswellasforecastsoffutureeconomicconditions,anagingscheduleofreceivablesfinancingandcorrespondingexpectedcreditlossrates(inlinewiththoseforaccountsreceivable)ispreparedtocalculatetheexpectedcreditlosses.
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CriteriaforIdentifyingIndividualProvisionsforBadDebtsonanIndividual-itemBasis
?Applicable□NotApplicableForReceivablesFinancingwithsignificantlydifferentcreditrisksandportfoliocreditrisks,theCompanyprovisionsforexpectedcreditlossesonanindividual-itembasis.TheCompanyseparatelydeterminesthecreditlossesonReceivablesFinancingwherethereissufficientevidencetoassessexpectedcreditlossesattheindividualinstrumentlevelatareasonablecost.
15.OtherReceivables
?Applicable□NotApplicablePortfolioCategoriesandDeterminationBasisforProvisionforBadDebtsbasedonCreditRiskCharacteristics
?Applicable□NotApplicable
FortheCompany’smethodsfordeterminationandaccountingtreatmentofexpectedcreditlossesonotherreceivables,pleaserefertoparagraph(11)6-ImpairmentofFinancialInstrumentsinSectionV-SignificantAccountingPoliciesandEstimates.Whenthereisinsufficientevidencetoassessexpectedcreditlossesattheindividualinstrumentlevelatareasonablecost,theCompanyreferstohistoricalcreditlossexperience,takingintoconsiderationcurrentconditionsandjudgmentsoffutureeconomicconditions,toclassifyotherreceivablesintoseveralportfoliosbasedoncreditriskcharacteristicsandcalculateexpectedcreditlossesonaportfoliobasis.Thebasisfordeterminingportfoliosisasfollows:
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PortfolioName
| PortfolioName | BasisforDeterminingPortfolios | ProvisionMethod |
| AgingPortfolio | Agingisusedasthecreditriskcharacteristic | Provisionismadeaccordingtothetableforcomparisonbetweenagingandexpectedcreditlossrate(sameasaccountsreceivable) |
| GovernmentAccounts | Governmentaccountsreceivable | Refertohistoricalcreditlossexperienceandtakeintoconsiderationcurrentconditionsandforecastsoffutureeconomicconditionstocalculateexpectedcreditlossesthroughdefaultriskexposureandtheexpectedcreditlossrateoverthenext12monthsortheentireduration. |
| PortfolioofAccountCurrentbetweenRelatedPartieswithintheConsolidationScope | RelatedpartieswithintheconsolidationscopeoftheCompany |
AgingCalculationMethodforDeterminingPortfoliosofCreditRiskCharacteristicsBasedonAgingAnalysis?Applicable□NotApplicable
Withreferencetohistoricalcreditlossexperience,andtakingintoaccountcurrentconditionsaswellasforecastsoffutureeconomicconditions,anagingscheduleofotherreceivablesandcorrespondingexpectedcreditlossrates(consistentwiththoseforaccountsreceivable)ispreparedtocalculatetheexpectedcreditlosses.CriteriaforIdentifyingIndividualProvisionsforBadDebtsonanIndividual-itemBasis
?Applicable□NotApplicable
Forotherreceivableswithsignificantlydifferentcreditrisksandportfoliocreditrisks,theCompanyprovisionsforexpectedcreditlossesonanindividual-itembasis.TheCompanyseparatelydeterminesthecreditlossesonotherreceivableswherethereissufficientevidencetoassessexpectedcreditlossesattheindividualinstrumentlevelatareasonablecost.
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16.Inventory
?Applicable□NotApplicableCategoriesofInventory,IssuanceValuationMethods,InventoryCountingSystems,andAmortizationMethodsforLow-valueConsumablesandPackaging?Applicable□NotApplicable
1．ClassificationofInventoryInventoryreferstofinishedproductsorgoodsheldbytheCompanyforsale,workinprogressproducts,andmaterialsandsuppliesconsumedintheproductionprocessorserviceprovisionprocess.Itmainlyincludesrawmaterials,workinprogressproducts,inventorygoods,andissuedgoods.2．InventoryValuationMethoduponIssuanceInventoriesareinitiallymeasuredatcostuponacquisition,whichincludespurchasecosts,processingcosts,andotherrelatedcosts.Wheninventoriesareissued,theyarevaluedusingtheweightedaveragemethodcalculatedattheendofthemonth.3．InventoryCountingSystemTheperpetualinventorysystemisusedforinventorycounting.4．AmortizationMethodforLow-valueConsumablesandPackaging
(1)Low-valueconsumablesareamortizedusingtheone-offwrite-offmethod;
(2)Packagingisamortizedusingtheone-offwrite-offmethod;
(3)Otherturnovermaterialsareamortizedusingtheone-offwrite-offmethod.RecognitionCriteriaandProvisionMethodforInventoryWritedown?Applicable□NotApplicable
Followingacomprehensiveinventoryinspectionattheendoftheperiod,inventorywrite-downareprovisionedoradjustedbasedonthelowerofcostornetrealizablevalueoftheinventory.Forgoodinventoriesdirectlyusedforsale,suchasfinishedgoods,goodsforresale,andmaterialsusedforsale,thenetrealizablevalueisdeterminedduringnormalproductionandoperationbysubtractingestimatedsellingexpensesandrelatedtaxesfromtheestimatedsellingpriceoftheinventory.Formaterialinventoryrequiringprocessing,thenetrealizablevalueisdeterminedduringnormalproductionandoperationbysubtractingestimatedcostsatcompletion,estimatedsellingexpenses,andrelatedtaxesfromtheestimatedsellingpriceofthefinishedproducts.Forinventoryheldtofulfillsalescontractsorservicecontracts,thenetrealizablevalueiscalculatedbasedonthecontractprice.Ifthequantityofinventoryheldexceedstheorderedquantityinthesalescontract,thenetrealizablevalueoftheexcessinventoryiscalculatedbasedonthegeneralsellingprice.
Theprovisionforinventorywrite-downismadeonanindividual-itembasisattheendoftheperiod;however,forinventorieswithnumerousquantitiesandlowunitprices,theprovisionforinventorywrite-downismadeaccordingtoinventorycategory.Forinventoriesrelatedtoproductseriesproducedandsoldinthesameregion,withsimilaroridenticalultimateusesorpurposes,anddifficulttomeasureseparatelyfromotheritems,theprovisionforinventorywrite-downisconsolidated.
Oncethefactorsaffectingthewrite-downofinventoryvaluehavedisappeared,theamountofwrite-downshouldberestoredandreversedwithintheoriginallyprovidedinventorywrite-downamount,withthe
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reversedamountrecordedintheprofitorlossforthecurrentperiod.PortfolioCategoriesandDeterminationBasisfortheProvisionforInventoryWrite-DownonaPortfolioBasisandDeterminationBasisforNetRealizableValuesofDifferentCategoriesofInventories
□Applicable?NotApplicableCalculationMethodandDeterminationBasisforNetRealizableValuesofVariousInventoryAgePortfoliosBasedonInventoryAge
□Applicable?NotApplicable
17.ContractAssets
?Applicable□NotApplicable
MethodandCriteriaforRecognizingContractAssets
?Applicable□NotApplicable
TheCompanyhastherighttoreceiveconsiderationfromcustomersforgoodstransferredtothemandrecognizestherightsdependingonfactorsbeyondthepassageoftimeascontractassets.TheCompanyseparatelypresentstheunconditional(i.e.,solelydependentonthepassageoftime)righttoreceiveconsiderationfromcustomersasaccountsreceivable.PortfolioCategoriesandDeterminationBasisforProvisionforBadDebtsbasedonCreditRiskCharacteristics?Applicable□NotApplicable
FortheCompany’smethodsfordeterminationandaccountingtreatmentofexpectedcreditlosesoncontractassets,pleaserefertoparagraph(11)6-ImpairmentofFinancialInstrumentsinSectionV-SignificantAccountingPoliciesandEstimates.AgingCalculationMethodforDeterminingPortfoliosofCreditRiskCharacteristicsBasedonAgingAnalysis
□Applicable?NotApplicableCriteriaforIdentifyingIndividualProvisionsforBadDebtsonanIndividual-itemBasis
□Applicable?NotApplicable
18.Non-currentAssetorDisposalPortfolioHeldforSale
□Applicable?NotApplicableRecognitionCriteriaandAccountingTreatmentMethodforNon-currentAssetsorDisposalPortfoliosHeldforSale?Applicable□NotApplicable
1．RecognitionCriteriaforClassificationasHeldforSale
Non-currentassetsordisposalportfoliosmeetingbothofthefollowingconditionsarerecognizedasheldforsale:
(1)Accordingtotheusualpracticeinsimilartransactions,theassetsordisposalportfolioscanbesoldimmediatelyundercurrentconditions;
(2)Thesaleishighlyprobable,meaningthattheCompanyhasmadeadecisiononasaleplanandobtainedafirmcommitmenttopurchase,withthesaleexpectedtobecompletedwithinoneyear.
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AfirmcommitmenttopurchasereferstoalegallybindingpurchaseagreementbetweentheCompanyandanotherparty,whichcontainssignificanttermssuchasthetransactionprice,time,andsufficientlyseverepenaltiesforbreach,minimizingthepossibilityofsignificantadjustmentsorcancellations.2．AccountingTreatmentMethodforClassificationasHeldforSaleDepreciationoramortizationisnotprovidedfornon-currentassetsordisposalportfoliosheldforsale.Iftheirbookvalueexceedsthenetamountoffairvaluelesssellingexpenses,thebookvalueshouldbewrittendowntothenetamountoffairvaluelesssellingexpenses,andthewritten-downamountshouldberecognizedasimpairmentlossonassetsandrecordedintheprofitorlossforthecurrentperiod,withtheprovisionsforimpairmentofassetsheldforsale.
Fornon-currentassetsordisposalportfoliosclassifiedasheldforsaleattheacquisitiondate,theloweroftheinitiallymeasuredamountiftheyarenotclassifiedasheldforsaleandthenetamountoffairvaluelesssellingexpensesshouldbecomparedattheinitialmeasurement.
Theaboveprinciplesapplytoallnon-currentassets,excludinginvestmentpropertiesmeasuredusingthefairvaluemodel,biologicalassetsmeasuredatnetamountoffairvaluelesssellingexpenses,assetsarisingfromemployeecompensation,deferredincometaxassets,financialassetsregulatedbyfinancialinstrument-relatedaccountingstandards,andrightsarisingfrominsurancecontractsregulatedbyinsurancecontract-relatedaccountingstandards.RecognitionCriteriaandPresentationMethodforBusinessTermination
□Applicable?NotApplicable
19.Long-termEquityInvestments
?Applicable□NotApplicable
1.DeterminationofInitialInvestmentCost
(1)Forspecificaccountingpoliciesforlong-termequityinvestmentsresultingfromenterprisemerger,pleasereferto(6)-AccountingTreatmentMethodforEnterpriseMergerundertheSameControlandnotundertheSameControlinSectionV-SignificantAccountingPoliciesandEstimates.
(2)Long-termequityinvestmentsacquiredthroughothermeans
Forlong-termequityinvestmentsacquiredviacashpayment,theinitialinvestmentcostistheactuallypaidpurchaseprice.Itencompassesexpensesdirectlyassociatedwiththeacquisitionofthelong-termequityinvestments,aswellastaxesandothernecessaryexpenditures.
Forlong-termequityinvestmentsacquiredthroughtheissuanceofequitysecurities,theinitialinvestmentcostisthefairvalueoftheequitysecuritiesissued.Transactioncostsincurredintheissuanceoracquisitionofequityinstrumentscanbedirectlyattributedtoequitytransactionsanddeductedfromequity.
Innon-monetaryassetexchangeswherethereexistscommercialsubstanceandthefairvalueoftheassetsreceivedorgivenupcanbereliablymeasured,theinitialinvestmentcostoflong-termequityinvestmentsreceivedinexchangefornon-monetaryassetsisdeterminedbasedonthefairvalueoftheassetsgivenup,unlessthereisconclusiveevidencethatthefairvalueoftheassetsreceivedismore
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reliable.Fornon-monetaryassetexchangesthatdonotmeettheaboveconditions,theinitialinvestmentcostofthelong-termequityinvestmentreceivedisdeterminedbasedonthebookvalueoftheassetsgivenupandtherelevanttaxespayable.
Forlong-termequityinvestmentsacquiredthroughdebtrestructuring,theirinitialinvestmentcostisdeterminedbasedontheirfairvalue.
2.SubsequentMeasurementandProfit/LossRecognition
(1)CostMethod
TheCompanymayadoptthecostmethodtoaccountforlong-termequityinvestmentsintheinvestedunitsoverwhichitexercisescontrol,valuethembasedontheirinitialinvestmentcost,andaddorwithdrawinvestmenttoadjustthecostoflong-termequityinvestments.
Inadditiontothecashdividendsorprofitsdeclaredbutnotyetdistributedincludedinthepriceorconsiderationactuallypaidattheacquisitionofinvestment,theCompanyrecognizesthecashdividendsorprofits,asdeclaredbytheinvestedunits,ascurrentinvestmentincome.
(2)EquityMethod
TheCompanyadoptstheequitymethodtoaccountforlong-termequityinvestmentsinassociatesandjointventures.Equityinvestmentsinassociateswithaportionindirectlyheldthroughventurecapitalinstitutions,mutualfunds,trustcompanies,orsimilarentities,includinginvestment-linkedinsurancefunds,shouldbemeasuredatfairvalue,withchangesthereinrecordedinprofitorloss.
Iftheinitialinvestmentcostofalong-termequityinvestmentexceedsthedifferencebetweentheCompany'sshareofthefairvalueofidentifiablenetassetsoftheinvestedunitatthetimeofinvestment,noadjustmentismadetotheinitialinvestmentcostofthelong-termequityinvestment.Iftheinitialinvestmentcostislessthanthedifferencementionedabove,itisrecordedintheprofitorlossforthecurrentperiod.
Afteracquiringalong-termequityinvestment,theCompanyseparatelyrecognizesinvestmentincomeandothercomprehensiveincomebasedonitsshareofthenetprofitandothercomprehensiveincomerealizedbytheinvestedunit,andadjuststhebookvalueofthelong-termequityinvestment.TheCompanyalsoreducesthebookvalueoflong-termequityinvestmentcorrespondinglybasedonitsshareoftheprofitsorcashdividendsdeclaredbytheinvestedunit.Incaseofanyotherchangesintheowners’equity,excludingnetprofit,othercomprehensiveincome,andprofitdistributionoftheinvestedunit,adjustmentsshouldbemadetothebookvalueofthelong-termequityinvestmentandrecordedintheowners’equity.
Whenrecognizingitsshareofthenetprofitorlossintheinvestedunit,theCompanyadjustsandthenrecognizesthenetprofitsoftheinvestedunitbasedonthefairvalueofvariousidentifiableassetsoftheinvestedunitatthetimeofinvestment.TheprofitorlossfromunrealizedinternaltransactionsbetweentheCompanyandassociatesorjointventuresareoffsetbasedontheCompany'sproportionateshare,andinvestmentincomeisrecognizedthereafter.
Whenrecognizingtheinvestedunit’slossestobebornebyit,theCompanytakesthefollowingsteps:(1)Offsetthebookvalueoflong-termequityinvestments;(2)Continuetorecognizeinvestment
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lossesatanamountlimitedtothebookvalueofthelong-termequitythatmateriallyrepresentsthenetinvestmentintheinvestedunitandoffsetthebookvalueoflong-termreceivables,etc.,ifthebookvalueofthelong-terminvestmentsareinsufficienttooffset.(3)Aftertheabovetreatments,iftheCompanystillbearsadditionalobligationsaccordingtotheinvestmentcontractoragreement,itshouldrecognizetheestimatedliabilitiesaccordingtotheestimatedobligationsandrecordthemintheinvestmentlossforthecurrentperiod.
Iftheinvestedunitrealizesprofitsinsubsequentperiods,theCompany,afterdeductingtheunrecognizedloss-sharingamount,proceedstotheaforementionedstepsinreverseorder:Writedownthebookbalanceofrecognizedestimatedliabilities,restorethebookvalueoflong-termequityandlong-termequityinvestmentthatmateriallyrepresentinvestmentintheinvestedunit,andthenrestoreandrecognizeinvestmentincome.
3.ConversionofAccountingMethodforLong-termEquityInvestments
(1)ConversionfromFairValueMeasurementtoEquityMethodforAccounting
ForequityinvestmentsheldbytheCompanywithoutcontrol,jointcontrol,orsignificantinfluenceovertheinvestedunit,recognizedusingfinancialinstrumentsandaccountedforusingmeasurementstandards,which,duetoadditionalinvestmentsorotherreasons,areabletoexertsignificantinfluenceovertheinvestedunitorexercisejointcontrolwithoutconstitutingcontrol,theinitialinvestmentcostforequityinvestmentsaccountedforbytheequitymethodisdeterminedbyaddingthefairvalueoftheoriginallyheldequityinvestmentsdeterminedinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentstotheadditionalinvestmentcost.
Iftheinitialinvestmentcostaccountedforbytheequitymethodislessthanthedifferencebetweenthenewlycalculatedsharesoffairvalueofidentifiablenetassetsoftheinvestedunitonthedateofadditionalinvestment,adjustmentsaremadetothebookvalueoflong-termequityinvestmentsandrecordedinthenon-operatingincomeforthecurrentperiod.
(2)MeasurementatFairValueorConversionofEquityMethodtoCostMethodforAccounting
ForequityinvestmentspreviouslyheldbytheCompanywithoutcontrol,jointcontrol,orsignificantinfluenceovertheinvestedunit,recognizedusingfinancialinstrumentsandaccountedforusingmeasurementstandards,orforlong-termequityinvestmentspreviouslyheldinassociatesorjointventures,which,duetoadditionalinvestmentsorotherreasons,areabletoexercisecontroloverinvestedunitnotunderthesamecontrol,thesumofthebookvalueofequityinvestmentspreviouslyheldandthecostofadditionalinvestmentsistreatedastheinitialinvestmentcostaccountedforbythecostmethodinthepreparationofindividualfinancialstatements.
Anyothercomprehensiveincomerecognizedinequityinvestmentsheldpriortotheacquisitiondateandaccountedforusingtheequitymethodshouldbeaccountedforusingthesamebasisastheinvestedunit'sdirectdisposalofrelatedassetsorliabilitieswhendisposingoftheinvestment.
ForequityinvestmentsheldpriortotheacquisitiondateandaccountedforinaccordancewiththerelevantprovisionsspecifiedintheAccountingStandardsforBusinessEnterprisesNo.22-Recognition
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andMeasurementofFinancialInstruments,cumulativefairvaluechangespreviouslyrecordedinothercomprehensiveincomearetransferredtotheprofitorlossforthecurrentperiodwhenconvertedtothecostmethod.
(3)ConversionofEquityMethodAccountingtoFairValueMeasurementIftheCompanylosesjointcontrolorsignificantinfluenceoveraninvestedunitduetothedisposalofpartofitsequityinvestmentsorotherreasons,theremainingequityafterdisposalisaccountedforinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.Thedifferencebetweenthefairvalueandthebookvalueonthedayoflosingjointcontrolorsignificantinfluenceisrecordedintheprofitorlossforthecurrentperiod.
Anyothercomprehensiveincomerecognizedandaccountedforbyequitymethodfororiginalequityinvestmentsshouldbeaccountedforusingthesamebasisastheinvestedunit'sdirectdisposalofrelatedassetsorliabilitieswhenterminatingtheadoptionoftheequitymethodforaccounting.
(4)ConversionofCostMethodtoEquityMethod
IftheCompanylosescontroloveraninvestedunitduetothedisposalofpartofitsequityinvestmentsorotherreasons,andtheremainingequityafterdisposalisabletoexercisejointcontrolorexertsignificantinfluenceovertheinvestedunit,theremainingequityshouldbeaccountedforusingtheequitymethod,andshouldbeadjustedasifithadbeenaccountedforusingtheequitymethodfromtheacquisitiondate.
(5)ConversionofCostMethodtoFairValueMeasurement
IftheCompanylosescontroloveraninvestedunitduetothedisposalofpartofitsequityinvestmentsorotherreasons,andtheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceovertheinvestedunit,theremainingequityshouldbeaccountedforinaccordancewiththerelevantprovisionsspecifiedintheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.Thedifferencebetweenthefairvalueandthebookvalueonthedayoflosingcontrolisrecordedintheprofitorlossforthecurrentperiod.
4.DisposalofLong-termEquityInvestments
Thedifferencebetweenthebookvalueandtheactuallyreceivedpriceforthedisposaloflong-termequityinvestmentsshouldberecordedintheprofitorlossforthecurrentperiod.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,thesamebasisastheinvestedunit'sdirectdisposalofrelatedassetsorliabilitiesshouldbeusedwhentheinvestmentisdisposedof,andtheportionoriginallyrecordedinothercomprehensiveincomeshouldbeaccountedforproportionally.
Whentheterms,conditionsandeconomicimpactoftransactionsinvolvingthedisposalofequityinvestmentsinsubsidiariesmeetoneormoreofthefollowingcircumstances,multipletransactionmattersshouldbeaccountedforasapackagedeal:
(1)Thesetransactionsareconcludedsimultaneouslyortakingintoaccounttheirmutualimpacts;
(2)Thesetransactionscollectivelyachieveacompletebusinessoutcome;
(3)Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;
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(4)Atransactionisuneconomicalwhenconsideredalone,butbecomeseconomicalwhenconsideredtogetherwithothertransactions.Ifthecontroloverasubsidiaryislostduetothedisposalofpartoftheequityinvestmentorotherreasonsandthetransactiondoesnotconstituteapackagedeal,individualfinancialstatementsandconsolidatedfinancialstatementsshouldbedistinguishedandrelevantaccountingtreatmentshouldbeapplied:
(1)Inindividualfinancialstatements,thedifferencebetweenthebookvalueandtheactuallyreceivedpriceforthedisposedequityshouldberecordedintheprofitorlossforthecurrentperiod.Iftheremainingequityafterdisposalcanexercisejointcontrolorexertsignificantinfluenceovertheinvestedunit,itshouldbeaccountedforusingtheequitymethod,andshouldbeadjustedasifithadbeenaccountedforusingtheequitymethodfromtheacquisitiondate;iftheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceovertheinvestedunit,itshouldbeaccountedforinaccordancewiththerelevantprovisionsspecifiedintheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,andthedifferencebetweenthefairvalueandthebookvalueonthedayoflosingcontrolshouldberecordedintheprofitorlossforthecurrentperiod.
(2)Inconsolidatedfinancialstatements,fortransactionsbeforethelossofcontroloverasubsidiary,thedifferencebetweenthedisposalpriceandthecorrespondingshareofnetassetsofthesubsidiarycalculatedcontinuouslyfromtheacquisitiondateormergerdate,shouldbeoffsetbycapitalreserve(sharepremium).Ifcapitalreserveisinsufficienttooffset,theretainedearningsshouldbeadjusted.Afterlosingcontroloverasubsidiary,theremainingequityshouldberemeasuredatfairvalueonthedateoflossofcontrol.Thesumofthepricereceivedforthedisposalofequityandthefairvalueoftheremainingequity,minustheproportionateshareofnetassetsoftheoriginalsubsidiarycalculatedfromtheacquisitiondateattheoriginalownershipproportion,shouldberecordedintheinvestmentincomefortheperiodoflossofcontrol,andoffsetbygoodwill.Othercomprehensiveincomerelatedtotheequityinvestmentsintheoriginalsubsidiaryshouldbetransferredtocurrentinvestmentincomeuponlossofcontrol.
Transactionsinvolvingthedisposalofequityinvestmentsinsubsidiariesuntilcontrolislost,whicharepartofapackagedeal,areaccountedforasasingletransactionforthedisposalofequityinvestmentsinsubsidiariesandlosingcontroloversubsidiaries,withseparateaccountingtreatmentforindividualfinancialstatementsandconsolidatedfinancialstatements.
(1)Inindividualfinancialstatements,thedifferencebetweeneachdisposalpriceandthebookvalueofthelong-termequityinvestmentscorrespondingtothedisposedequitybeforethelossofcontrolisrecognizedasothercomprehensiveincomeandtransferredtotheprofitorlossforthecurrentperiodwhencontrolislost.
(2)Inconsolidatedfinancialstatements,thedifferencebetweeneachdisposalvalueandtheshareofthenetassetsofthesubsidiarycorrespondingtothedisposedinvestmentisrecognizedasothercomprehensiveincomebeforethelossofcontrolandtransferredtotheprofitorlossforthecurrent
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periodwhencontrolislost.
5.JudgementCriteriaforJointControlandSignificantInfluenceIftheCompanycollectivelycontrolsanarrangementwithotherpartiesinaccordancewithrelevantagreementsanddecisionsthatsignificantlyaffectthereturnsfromthearrangementrequireunanimousconsentofthepartiessharingcontrol,itisconsideredthattheCompanyjointlycontrolsthearrangementwithotherparties,andthearrangementfallsunderthecategoryofjointarrangements.
Ifajointarrangementisreachedthroughaseparateentity,theCompanytreatstheseparateentityasajointventureandappliestheequitymethodforaccountingbasedonrelevantagreementswhendeterminingitsrighttothenetassetsofthatseparateentity.IfitisdeterminedbasedonrelevantagreementsthattheCompanydoesnothavetherighttothenetassetsofthatseparateentity,theseparateentityistreatedasajointoperation,andtheCompanyrecognizesitemsrelatedtoitsinterestinjointoperationsandaccountsfortheminaccordancewithrelevantAccountingStandardsforBusinessEnterprises.
Significantinfluencereferstothepoweroftheinvestingpartytoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestedunit,withoutcontrolorjointlycontrolwithotherpartiesovertheformulationofthesepolicies.TheCompanydeterminessignificantinfluenceontheinvestedunitbasedononeormoreofthefollowingcircumstancesandtakesintoconsiderationallfactsandcircumstances:(1)Havingrepresentativestotheboardofdirectorsorsimilargoverningbodiesoftheinvestedunit;(2)Participatingintheprocessofformulatingthefinancialandoperatingpoliciesoftheinvestedunit;(3)Engaginginsignificanttransactionswiththeinvestedunit;(4)Deployingmanagementpersonneltotheinvestedunit;(5)Providingcriticaltechnicalinformationtotheinvestedunit.
20.InvestmentPropertiesNotApplicable
21.FixedAssets
(1)RecognitionConditions?Applicable□NotApplicable
1.RecognitionConditionsforFixedAssets
Fixedassetsrefertotangibleassetsheldforthepurposeofproducinggoods,providingservices,renting,ormanagingoperations,andwhoseusefullifeexceedsoneaccountingyear.Fixedassetsarerecognizedwhenbothofthefollowingconditionsaremet:
(1)Economicbenefitsrelatedtothefixedassetsarelikelytoflowintotheenterprise;
(2)Thecostofthefixedassetscanbereliablymeasured.
2.InitialMeasurementofFixedAssetsFixedassetsofthecompanyareinitiallymeasuredbasedoncost.
(1)Thecostofexternallyacquiredfixedassetsincludesthepurchaseprice,importtariffs,andothertaxesandfeesrelatedtotheasset,aswellasotherexpensesdirectlyattributabletotheassetbeforeitreachestheintendedusablestate.
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(2)Thecostofself-constructedfixedassetsconsistsofnecessaryexpensesincurredbeforetheassetreachestheintendedusablestate.
(3)Fixedassetscontributedbyinvestorsarebookedtheentryvalueagreeduponintheinvestmentcontractoragreement,butifthevalueagreeduponinthecontractoragreementisnotfair,itisbookedfairvalue.
(4)Ifthepurchasepriceoffixedassetsexceedsthenormalcredittermswithdeferredpaymentandhasasubstantivefinancingnature,thecostofthefixedassetsisdeterminedbasedonthepresentvalueofthepurchaseprice.Thedifferencebetweentheactuallypaidpriceandthepresentvalueofthepurchasepriceisrecordedinthecurrentprofitorlossduringthecreditperiod.
3.SubsequentMeasurementandDisposalofFixedAssets
(1)DepreciationofFixedAssetsDepreciationoffixedassetsisprovidedovertheirestimatedusefullivesafterdeductingtheestimatedresidualvaluefromtheirentryvalue.Forfixedassetsforwhichimpairmentprovisionshavebeenmade,depreciationisiscalculatedinfutureperiodsbasedontheremainingbookvalueandtheestimatedremainingusefullifeafterdeductingtheimpairmentprovisions.Fixedassetsthathavebeenfullydepreciatedandarestillinusearenotsubjecttofurtherdepreciation.Forfixedassetsarisingfromexpenditurefundedbyspecialreserves,thecostofthesefixedassetsisoffsetagainstthespecialreservesandanequivalentamountofaccumulateddepreciationisrecognized,withnodepreciationbeingprovidedinsubsequentperiods.
TheCompanydeterminestheusefullifeandestimatedresidualvalueoffixedassetsbasedontheirnatureandusage.Attheendofeachyear,theusefullife,estimatedresidualvalue,anddepreciationmethodoffixedassetsarereviewed,andadjustmentsaremadeiftherearedifferencesfromtheoriginalestimates.
(2)SubsequentExpendituresonFixedAssets
Subsequentexpendituresrelatedtofixedassetsarerecordedinthecostoffixedassetsiftheymeettherecognitionconditionsforfixedassets;orrecordedintheprofitorlossforthecurrentperiodiftheydonotmeettherecognitionconditionsforfixedassets.
(3)DisposalofFixedAssetsWhenfixedassetsaredisposedoforwhenitisexpectedthatnoeconomicbenefitswillarisefromtheiruseordisposal,suchfixedassetsarederecognized.Thedisposalproceedsfromthesale,transfer,scrappingordamageoffixedassets,afterthedeductionoftheirbookvalueandrelevanttaxes,arerecordedintheprofitorlossforthecurrentperiod.
(2)DepreciationMethod
?Applicable□NotApplicable
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Category
| Category | DepreciationMethod | DepreciationPeriod | ResidualValueRate(%) | AnnualDepreciationRate(%) |
| HousingandStructures | Straight-LineMethod | HousingandStructures20-40yearsArchitectures10-20years | 5.00 | 2.375-9.50 |
| MachineryandEquipment | Straight-LineMethod | 5-20years | 5.00 | 4.75-19.00 |
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TransportationTools
| TransportationTools | Straight-LineMethod | 5years | 5.00 | 19.00 |
| OfficeandOtherEquipment | Straight-LineMethod | 5years | 5.00 | 19.00 |
22.ConstructioninProgress
?Applicable□NotApplicable
1．InitialMeasurementofConstructioninProgressConstructioninprogress,self-constructedbytheCompany,isvaluedatactualcost,whichcomprisesnecessaryexpensesincurreduntiltheassetreachestheintendedusablestate,includingcostofmaterials,labor,relevanttaxespaid,borrowingcoststobecapitalized,andindirectcoststobeallocated.2．CriteriaandTimingforCapitalizationofConstructioninProgressintoFixedAssetsAllexpendituresincurredbeforetheintendedusablestateisachievedforconstructioninprogressprojectsarerecognizedastheentryvalueoffixedassets.Whenconstructioninprogresshasreachedtheintendedusablestatebutfinalsettlementhasnotbeencompleted,itiscapitalizedintofixedassetsbasedontheestimatedvaluedeterminedbyprojectbudget,constructioncost,oractualprojectcostanddepreciationisthenprovidedbasedontheCompany'sfixedassetdepreciationpolicy.Afterthefinalsettlement,theestimatedvalueisadjustedaccordingtotheactualcost,butpreviouslyprovideddepreciationisnotadjusted.TheimpairmenttestingmethodandtheprovisionmethodforimpairmentofconstructioninprogressaredetailedinSection27:ImpairmentofLong-termAssets.
23.BorrowingCosts?Applicable□NotApplicable
1．RecognitionPrincipleforCapitalizationofBorrowingCosts
BorrowingcostsincurredbytheCompanythataredirectlyattributabletotheacquisitionorconstructionofqualifyingassetsforcapitalizationarecapitalizedandrecordedinthecostofrelatedassets;otherborrowingcostsarerecognizedasexpensesbasedontheiramountswhenincurred.Qualifyingassetsforcapitalizationrefertoassetssuchasfixedassets,investmentpropertiesandinventoriesthatrequireasubstantialperiodoftimeforacquisitionorconstructionactivitiestoreachtheirintendedusableorsaleablestatus.
Borrowingcostsareeligibleforcapitalizationwhenallofthefollowingconditionsaremet:
(1)Expenditurefortheassethasbeenincurred,includingpaymentsincash,thetransferofnon-cashassets,ortheassumptionofinterest-bearingliabilitiesforacquisition,constructionorproductionofqualifyingassetsforcapitalization;
(2)Borrowingcostshavebeenincurred;
(3)Thenecessaryacquisition,construction,orproductionactivitiestobringtheassettoitsintendedusableorsaleablestatehavecommenced.2．CapitalizationPeriodforBorrowingCosts
Thecapitalizationperiodreferstothedurationfromthecommencementofcapitalizingborrowingcoststothecessationofsuchcapitalization,excludingperiodswhencapitalizationofborrowingcostsis
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suspended
Capitalizationofborrowingcostshaltswhenthequalifyingassetsforcapitalizationreachestheintendedusableorsaleablestatus.
Whenpartsofaqualifyingassetforcapitalizationarecompletedandcanbeusedseparately,capitalizationofborrowingcostsforthosepartshalts.
Forassetswherepartsarecompletedbutcannotbeusedorsolduntiltheentireassetiscompleted,capitalizationofborrowingcostshaltswhentheentireassetiscompleted.3．SuspensionPeriodforCapitalization
Ifthereisanabnormalinterruptionduringtheacquisition,constructionorproductionofaqualifyingassetforcapitalizationandtheinterruptionlastscontinuouslyformorethanthreemonths,capitalizationofborrowingcostsissuspended.Capitalizationwillcontinueiftheinterruptionisnecessaryfortheassettoreachitsintendedusableorsaleablestate.Borrowingcostsincurredduringtheinterruptionperiodarerecognizedasprofitorlossforthecurrentperiodandtheircapitalizationwillcontinueuntiltheresumptionofassetacquisition,constructionorproductionactivities.4．CalculationMethodforCapitalizedAmountofBorrowingCosts
Interestcostsonspecificborrowings(netofinterestincomeearnedfromthedepositoftheborrowedfundsnotyetusedorfromtemporaryinvestments)andrelatedauxiliarycostsarecapitalizeduntilthequalifyingassetforcapitalizationunderacquisition,constructionorproductionreachesitsintendedusableorsaleablestate.
Theamountofinterestfromgeneralborrowingstobecapitalizediscalculatedbymultiplyingtheweightedaverageofaccumulatedexpenditureontheassetoverthespecificborrowingsbythecapitalizationrateofthegeneralborrowings.Thecapitalizationrateisdeterminedbasedontheweightedaverageinterestrateofgeneralborrowings.
Ifborrowingcarriesadiscountorpremium,theamountofdiscountorpremiumtobeamortizedduringeachaccountingperiodisdeterminedusingtheeffectiveinterestmethod,withadjustmentstotheinterestamountforeachperiod.
24.BiologicalAssets
□Applicable?NotApplicable
25.OilandGasAssets
□Applicable?NotApplicable
26.IntangibleAssets
(1)usefullifeandItsDeterminationBasis,Estimation,AmortizationMethod,orReviewProcedures
?Applicable□NotApplicableIntangibleassetsrefertoidentifiablenon-monetaryassetswithoutphysicalformcontrolledorownedbytheCompany,includinglanduserights,software,andlicensesforpatentusage.
1.RecognitionCriteriaforIntangibleAssets
Anintangibleassetmustmeettheabovedefinitionofanintangibleassetandalsosatisfyallofthe
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followingrecognitioncriteria:
(1)Itisprobablethattheeconomicbenefitsassociatedwiththeassetwillflowtotheenterprise;
(2)Thecostoftheassetcanbemeasuredreliably.
2.InitialMeasurementofIntangibleAssetsThecostofexternallyacquiredintangibleassetsincludesthepurchaseprice,relatedtaxes,andotherexpensesdirectlyattributabletobringingtheassettoitsintendeduse.Ifthepurchasepriceofintangibleassetsexceedsthenormalcredittermswithdeferredpaymentandhasasubstantivefinancingnature,thecostofintangibleassetsisdeterminedbasedonthepresentvalueofthepurchaseprice.
Thecostofinternallydevelopedintangibleassetsincludesmaterialsconsumed,laborcosts,registrationfees,amortizationofotherpatentsandlicensesusedduringdevelopment,interestexpensesformeetingthecapitalizationconditions,andotherdirectexpensesincurredbeforetheintangibleassetreachesitsintendeduse.
3.SubsequentMeasurementofIntangibleAssetsThecompanyanalyzesandassessestheusefullifeofintangibleassetsatthetimeofacquisition,andclassifiesthemashavingeitherfiniteorindefiniteusefullives.
(1)IntangibleAssetswithFiniteUsefulLives
Forintangibleassetswithfiniteusefullives,straight-lineamortizationisappliedovertheperiodduringwhichtheassetisexpectedtogenerateeconomicbenefits.Theestimatedusefullivesofsuchassetsandtheirbasisareasfollows:
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Item
| Item | EstimatedUsefulLife | Basis |
| LandUseRights | 50years | LandUseCertificate |
| Software | 10years | ContractualAgreementsandTaxLawProvisions |
| LicensesforPatentUsage | 4.75-20years | BenefitPeriod |
Attheendofeachperiod,theusefullivesofanddepreciationmethodsforintangibleassetswithfiniteusefullivesarereviewed,andadjustedwhennecessary.
(2)IntangibleAssetswithIndefiniteUsefulLivesIntangibleassetsforwhichtheperiodofeconomicbenefitcannotbereliablypredictedareconsideredtohaveindefiniteusefullives.
TheCompanydoesnothaveanyintangibleassetswithindefiniteusefullives.Forimpairmenttestingmethodsandimpairmentprovisionmethodsforintangibleassets,referto(27)-ImpairmentofLong-termAssetsinSectionV-SignificantAccountingPoliciesandEstimates.
(2)AggregationScopeofofResearchandDevelopmentExpendituresandRelevantAccountingTreatmentMethods
?Applicable□NotApplicable
1.SpecificcriteriafordifferentiatingresearchanddevelopmentphasesintheCompany’sinternalresearchanddevelopmentprojects
ResearchPhase:Aphaseinvolvinginnovative,plannedinvestigationsandresearchactivitiestoacquireandcomprehendnewscientificortechnologicalknowledge.
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DevelopmentPhase:Aphaseinwhichresearchfindingsorotherknowledgeareappliedtoaspecificplanordesignbeforecommercialproductionoruse,leadingtothecreationofneworsubstantiallyimprovedmaterials,devices,products,etc.Expendituresincurredduringtheresearchphaseofinternalresearchanddevelopmentprojectsarerecordedintheprofitorlossforcurrentperiodwhentheyoccur.
2.Specificcriteriaforcapitalizationofexpendituresduringthedevelopmentphase
Expendituresincurredduringthedevelopmentphaseofinternalresearchanddevelopmentprojectsarerecognizedasintangibleassetswhentheymeetallofthefollowingconditions:
(1)Completionoftheintangibleassettoenableitsuseorsaleistechnicallyfeasible;
(2)Thereisanintentiontocompletetheintangibleassetanduseorsellit;
(3)Theintangibleassetgenerateseconomicbenefits,eitherbydemonstratingthepresenceofamarketforproductsproducedusingtheassetorbydemonstratingthepresenceofamarketfortheassetitself,orbydemonstratingitsusefulnessifitwillbeusedinternally;
(4)Thereareadequatetechnical,financial,andotherresourcestocompletethedevelopmentoftheintangibleassetandtheCompanyisabletouseorsellit;
(5)Expendituresattributabletothedevelopmentstageoftheintangibleassetcanbereliablymeasured.
Expendituresincurredduringthedevelopmentphasethatdonotmeettheaboveconditionsarerecordedintheprofitorlossforthecurrentperiodwhentheyoccur.Developmentexpenditurespreviouslyrecordedinprofitorlossarere-recognizedasassetsinsubsequentperiods.Capitalizedexpendituresduringthedevelopmentphasearepresentedonthebalancesheetasdevelopmentexpendituresandarereclassifiedasintangibleassetsfromthedatetheprojectreachesitsintendeduse.
27.ImpairmentofLong-termAssets?Applicable□NotApplicable
Ateachbalancesheetdate,theCompanyreviewsitslong-termequityinvestments,fixedassets,constructioninprogress,andintangibleassetswithdefiniteusefullivesforanyindicationofpossibleimpairment.Ifanysuchindicationexists,therecoverableamountoftheindividualassetisestimated.Whereitisdifficulttoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheassetgrouptowhichtheassetbelongsisdeterminedinstead.
Theestimationoftherecoverableamountofanassetisdeterminedbythenetamountofitsfairvaluelessdisposalcostsoritspresentvalueofexpectedfuturecashflows,whicheverishigher.
Themeasurementresultsoftherecoverableamountindicatesthatifalong-termasset’srecoverableamountislessthanitsbookvalue,thebookvalueiswrittendowntotherecoverableamount,andthewritten-downamountisrecognizedasanimpairmentlossandrecordedintheprofitorlossforthecurrentperiod,withtheprovisionforassetimpairmentbeingprovidedaccordingly.Onceanassetimpairmentlossisrecognized,itcannotbereversedinsubsequentaccountingperiods.
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Afterrecognitionofassetimpairmentlosses,theexpensesondepreciationoramortizationofimpairedassetsareadjustedaccordinglyinfutureperiodstosystematicallyallocatetheadjustedbookvalueoftheassets(netofestimatednetresidualvalue)overtheremainingusefullife.Forgoodwillarisingfromenterprisemergerandintangibleassetswithindefiniteusefullives,impairmenttestsareconductedannuallyregardlessofwhetherthereareindicatorsofimpairment.Whenconductingimpairmenttestsongoodwill,thebookvalueofgoodwillisallocatedtotheassetportfolioorassetportfoliosthatareexpectedtobenefitfromthesynergyeffectsoftheenterprisemerger.Whenconductingimpairmenttestsonassetportfolioorassetportfolioscontaininggoodwill,ifthereareindicatorsofimpairmentrelatedtotheassetportfolioorassetportfolioscontaininggoodwill,impairmenttestsarefirstconductedonassetportfolioorassetportfolioswithoutgoodwill,andthentherecoverableamountiscalculated,andcomparedwiththebookvaluetorecognizethecorrespondingimpairmentloss.Subsequently,impairmenttestsareconductedonassetportfolioorassetportfolioscontaininggoodwill,andthebookvalue(includingthebookvalueportionofallocatedgoodwill)oftherelatedassetportfolioorassetportfoliosiscomparedwiththeirrecoverableamount.Iftherecoverableamountoftherelatedassetportfolioorassetportfoliosislowerthantheirbookvalue,impairmentlossesongoodwillarerecognized.
28.Long-termDeferredExpenses
?Applicable□NotApplicable
1．AmortizationMethod
Long-termdeferredexpensesrefertoexpensesthathavebeenincurredbytheCompanybutshouldbeallocatedoveraperiodexceedingoneyearfromthecurrentperiodandsubsequentperiods.Long-termdeferredexpensesareamortizedonastraight-linebasisoverthebenefitperiod.
2．AmortizationPeriod
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Category
| Category | AmortizationPeriod(Years) | Remarks |
| SiteLeaseFees | 20 | LeaseTerm |
| SyndicatedArrangementFees | 7.5 | LoanTerm |
| HousingSubsidies | 9 | ServicePeriod |
| EmployeeRewards | 5 | ServicePeriod |
| ProductionMaterials | 1.5-5 | UsagePeriod |
| LeaseholdImprovements | 5 | UsagePeriod |
29.ContractLiabilities
?Applicable□NotApplicableTheCompanyrecognizesascontractliabilitiestheobligationtotransfergoodstocustomersfortheconsiderationreceivedorreceivablefromcustomers.
30.EmployeeCompensation
(1)MethodforAccountingTreatmentofShort-termCompensation?Applicable□NotApplicableShort-termcompensationreferstotheemployeecompensationthattheCompanyisobligatedtopay
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withintwelvemonthsaftertheendoftheannualreportingperiodinwhichtheemployeesproviderelevantservices,excludingpost-employmentbenefitsandterminationbenefits.Duringtheaccountingperiodinwhichemployeesprovideservices,short-termcompensationpayableisrecognizedasaliability,andisrecordedinrelatedassetcostsandexpensesbasedonthebenefitsderivedfromtheservicesprovidedbyemployees.
(2)MethodforAccountingTreatmentofPost-EmploymentBenefits
?Applicable□NotApplicablePost-employmentbenefitsrefertovariousformsofcompensationandbenefitsprovidedbytheCompanytoemployeesuponretirementorterminationofemploymentwiththeCompanyforattainingtheservicesprovidedbyemployees,excludingshort-termcompensationandterminationbenefits.
AlloftheCompany'spost-employmentbenefitplansaredefinedcontributionplans.TheCompany'sdefinedcontributionplanforpost-employmentbenefitsprimarilyincludeparticipationinbasicsocialpensioninsurance,unemploymentinsurance,etc.organizedandimplementedbylocallaborandsocialsecurityinstitutions.DuringtheaccountingperiodinwhichemployeesprovideservicestotheCompany,theamountpayablecalculatedbasedonthedefinedcontributionplanisrecognizedasaliability,andisrecordedintheprofitorlossforthecurrentperiodorrelatedassetcosts.
Aftermakingregularpaymentsfortheaboveitemsinaccordancewithnationalstandards,theCompanynolongerhasanyfurtherpaymentobligations.
(3)MethodforAccountingTreatmentofTerminationBenefits
?Applicable□NotApplicable
TerminationbenefitsrefertocompensationsprovidedbytheCompanytoemployeesduetoterminationoftheiremploymentcontractsbeforetheirexpirationorasincentivesforvoluntarylayoffs.ThesearerecognizedasliabilitiesarisingfromcompensationsforterminatingemploymentcontractswhentheCompanycannotunilaterallywithdrawterminationplansorlayoffproposals,andwhencostsrelatedtorestructuringinvolvingpaymentsforterminationbenefitsareconfirmed,whicheveroccursearlier,andaresimultaneouslyrecordedintheprofitorlossforthecurrentperiod.
(4)MethodforAccountingTreatmentofOtherLong-termEmployeeBenefits
?Applicable□NotApplicable
Otherlong-termemployeebenefitsrefertoallemployeebenefitsotherthanshort-termcompensation,post-employmentbenefits,andterminationbenefits.
Forotherlong-termemployeebenefitsthatmeettheconditionsofthedefinedcontributionplan,theamountpayableisrecognizedasaliabilityandrecordedintheprofitorlossforthecurrentperiodorrelatedassetcostsduringtheaccountingperiodinwhichemployeesprovideservicestotheCompany.
31.EstimatedLiabilities?Applicable□NotApplicable
1．RecognitionCriteriaforEstimatedLiabilities
AprovisionisrecognizedwhentheobligationrelatedtoacontingencyconstitutesapresentobligationoftheCompany,itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andtheamountoftheobligationcanbereliablymeasured.
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2．MeasurementMethodforEstimatedLiabilitiesTheestimatedliabilitiesoftheCompanyareinitiallymeasuredatthebestestimateoftheexpenditurerequiredtofulfilltherelatedpresentobligation.Whendeterminingthebestestimate,theCompanytakesintoaccountcomprehensivelyfactorssuchasrisks,uncertainties,andthetimevalueofmoneyrelatedtothecontingentliabilities.Forcontingentliabilitieswithsignificantimpactonthetimevalueofmoney,thebestestimateshouldbedeterminedbydiscountingtherelevantfuturecashoutflows.
Thebestestimateishandledasfollows:
Incaseswherethereisacontinuousrange(orinterval)ofexpendituresandeachpossibleoutcomewithintherangeoccurswithequalprobability,thebestestimateshouldbedeterminedbasedontheaverageoftheupperandlowerlimitsoftherange.Incaseswherethereisnocontinuousrange(orinterval)ofexpenditures,oralthoughthereisacontinuousrange,theprobabilitiesofoccurrenceofvariousoutcomeswithintherangearenotequal,thebestestimateshouldbedeterminedbasedonthemostlikelyamountifthecontingentmatterrelatestoasingleitemandshouldbecalculatedbasedonvariouspossibleoutcomesandtheirprobabilitiesifthecontingentliabilityinvolvesmultipleitems.
Ifallorpartoftheexpendituresrequiredtosettletheestimatedliabilitiesareexpectedtobecompensatedbyathirdparty,thecompensationamountshouldbeseparatelyrecognizedasanassetwhenitisvirtuallycertaintobereceived,withtherecognizedcompensationamountnotexceedingthebookvalueoftheestimatedliabilities.
32.Share-basedPayment
?Applicable□NotApplicable
1．TypesofShare-basedPayment
Theshare-basedpaymentbytheCompanyiscategorizedintoshare-basedpaymentsettledbyequityandshare-basedpaymentsettledbycash.
2．MethodforDeterminingFairValueofEquityInstruments
Forgrantedequityinstrumentssuchasoptionswithactivemarkets,theirfairvalueisdeterminedbasedonquotesfromsuchactivemarkets.Forgrantedequityinstrumentssuchasoptionswithoutactivemarkets,theirfairvalueisdeterminedusingoptionpricingmodelorothermethods.Thefollowingfactorsareconsideredintheselectedoptionpricingmodel:(1)exercisepriceoftheoption;(2)termoftheoption;(3)currentpriceoftheunderlyingshares;(4)expectedvolatilityofshareprices;(5)expecteddividendsofshares;(6)risk-freeinterestrateduringthetermoftheoption.
Whendeterminingthefairvalueonthegrantdateofequityinstruments,theCompanytakesintoaccounttheimpactofmarketconditionsandnon-marketconditionsintheexercisableconditionsforexercisingasstipulatedintheshare-basedcompensationagreement.Ifnon-exercisableconditionsexist,aslongasemployeesorotherpartiesmeetallnon-marketconditionsamongallexercisableconditions(suchasserviceperiods),thecorrespondingcostofservicesreceivedisrecognized.
3．BasisforDeterminingtheBestEstimateofExercisableEquityInstruments
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Oneachbalancesheetdateduringthevestingperiod,thebestestimateismadebasedonthelatestchangesinthenumberofeligibleemployeesforexerciseandothersubsequentinformation,withadjustmenttotheestimatedquantityofexercisableequityinstruments.Ontheexercisedate,thefinalestimatedquantityofexercisableequityinstrumentsmatchestheactualquantityofsuchinstruments.
4．AccountingTreatmentMethod
(1)AccountingTreatmentforEquity-SettledandCash-SettledShare-BasedPayments
Forequity-settledshare-basedpayments,thefairvalueofequityinstrumentsgrantedtoemployeesisusedformeasurement.Iftheequityinstrumentsareexercisableimmediatelyupongrant,theirfairvalueonthegrantdateisrecognizedinrelevantcostsorexpenses,withacorrespondingincreaseincapitalreserve.Whenequity-settledshare-basedpaymentsareusedinexchangeforservicesfromotherparties,andthefairvalueofsuchservicescanbereliablymeasured,thefairvalueoftheservicesontheacquisitiondateisrecognizedinrelevantcostsorexpenses,withacorrespondingincreaseincapitalreserve.Ifthefairvalueoftheservicescannotbereliablymeasuredbutthefairvalueoftheequityinstrumentscanbe,thefairvalueoftheequityinstrumentsontheserviceacquisitiondateisusedinstead.Forequityinstrumentsexercisableonlyuponcompletionofthevestingperiodorachievementofperformanceconditions,thebestestimateofthenumberofequityinstrumentsexpectedtovestismadeateachbalancesheetdateduringthevestingperiod.Basedonthefairvalueoftheequityinstrumentsatthegrantdate,thevalueoftheservicesreceivedduringtheperiodisrecognizedinrelevantcostsorexpensesandcapitalreserve.Noadjustmentismadetothetotalrecognizedcostorequityafterthevestingdate.Forshare-basedpaymentstootherparties,ifthefairvalueoftheservicescanbereliablymeasured,thefairvalueoftheservicesontheacquisitiondateisrecognizedinrelevantcostsorexpenses,withacorrespondingincreaseincapitalreserve.Ifthefairvalueoftheservicescannotbereliablymeasuredbutthefairvalueoftheequityinstrumentscanbe,thefairvalueoftheequityinstrumentsontheserviceacquisitiondateisusedinstead.
Forcash-settledshare-basedpayments,theliabilityismeasuredatthefairvalueoftheobligationundertakenbytheCompany,whichisdeterminedbasedonsharesorotherequityinstruments.Iftheinstrumentsareexercisableimmediatelyupongrant,thefairvalueoftheliabilityonthegrantdateisrecognizedinrelevantcostsorexpenses,withacorrespondingincreaseinliabilities.Forinstrumentsthatbecomeexercisableonlyaftercompletingthevestingperiodormeetingperformanceconditions,thefairvalueoftheliabilityisestimatedateachbalancesheetdateduringthevestingperiodbasedonthebestestimateofvesting,andthevalueoftheservicesreceivedduringtheperiodisrecognizedincostsorexpensesandcorrespondingliabilities.Priortosettlementoftheliability,thefairvalueoftheliabilityisremeasuredateachbalancesheetdateandonthesettlementdate,andanychangesinfairvaluearerecognizedinprofitorlossfortheperiod.
(2)AccountingTreatmentforModificationstoTermsandConditionsofShare-BasedPayments
Forunfavorablemodifications,theCompanytreatsthechangeasifithadneveroccurredandcontinuestoaccountfortheservicesreceivedasoriginallyagreed.
Forfavorablemodifications,theCompanyappliesthefollowingtreatment:Ifthemodification
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increasesthefairvalueoftheequityinstrumentsgranted,theCompanyrecognizesanincreaseinthevalueofservicesreceivedaccordingly.Ifthemodificationoccursduringthevestingperiod,thefairvalueoftheservicesreceivedfromthedateofmodificationtotherevisedvestingdateshallincludeboththeamountbasedontheoriginalgrant-datefairvalueoftheequityinstrumentsfortheremainingoriginalvestingperiod,andtheincreaseinfairvalueresultingfromthemodification.Ifthemodificationoccursafterthevestingdate,theincreaseinfairvalueshallberecognizedimmediately.Ifthemodifiedshare-basedpaymentarrangementrequirestheemployeetocompletealongerserviceperiodbeforevesting,theCompanyshallrecognizetheincreaseinfairvalueovertherevisedvestingperiod.Ifthemodificationincreasesthenumberofequityinstrumentsgranted,theCompanyshallrecognizethefairvalueoftheadditionalequityinstrumentsasanincreaseinthevalueofservicesreceived.Ifthemodificationoccursduringthevestingperiod,thefairvalueoftheservicesreceivedfromthemodificationdatetothevestingdateoftheadditionalequityinstrumentsshallincludeboththeoriginalfairvaluebasedonthegrantdatefortheremainingvestingperiod,andtheincreaseinfairvaluefromtheadditionalinstruments.IftheCompanymodifiesthevestingconditionsinamannerfavorabletotheemployee—suchasshorteningthevestingperiodorchangingorcancellingperformanceconditions(excludingmarketconditions)—therevisedvestingconditionsshallbetakenintoaccountwhenassessingthevesting.IftheCompanymodifiesacash-settledshare-basedpaymentarrangementsothatitbecomesanequity-settledarrangement,theCompanymeasurestheequity-settledshare-basedpaymentatthefairvalueoftheequityinstrumentsgrantedonthemodificationdate(regardlessofwhetherthemodificationoccursduringorafterthevestingperiod),andrecognizestheservicesreceiveduptothatdateincapitalreserves.Atthesametime,theliabilitypreviouslyrecognizedforthecash-settledarrangementisderecognized,andanydifferenceisrecognizedinprofitorlossfortheperiod.Ifthemodificationresultsinanextensionorshorteningofthevestingperiod,theCompanyaccountsforthechangebasedontherevisedvestingperiod.
(3)AccountingTreatmentforCancellationofShare-BasedPaymentsIfthegrantedequityinstrumentsarecancelledduringthevestingperiod,theCompanyaccountsforthecancellationasanacceleratedvesting.Theamountthatwouldhavebeenrecognizedovertheremainingvestingperiodisrecognizedimmediatelyinprofitorlossforthecurrentperiod,withacorrespondingincreaseincapitalreserves.Ifanemployeeorotherpartychoosesnottomeetanon-vestingconditionduringthevestingperiod,theCompanytreatsitasacancellationofthegrantedequityinstruments.
Ifanemployeevoluntarilywithdrawsfromtheequityincentiveplan,theCompanyaccountsforitasanacceleratedvesting,recognizingimmediatelyinprofitorlosstheamountthatwouldhavebeenrecognizedovertheremainingvestingperiod,withacorrespondingincreaseincapitalreserves.
33.PreferredShares,PerpetualBonds,andOtherFinancialInstruments
□Applicable?NotApplicable
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34.Revenue
(1).AccountingPoliciesforDisclosureofRevenueRecognitionandMeasurementbyBusinessType?Applicable□NotApplicable
TheCompany'srevenuemainlyarisefromthefollowingbusinesstypes:salesoffoodflavorandtextureoptimizationproducts,animalnutritionaminoacids,humanmedicalaminoacids,andrelatedby-products.1．GeneralPrinciplesofRevenueRecognition
TheCompanyrecognizesrevenueatthetransactionpriceallocatedtothatperformanceobligationwhenitfulfillsitsobligationsundercontracts,i.e.,whencustomersobtainsthecontrolovertherelevantgoodsorservices.
PerformanceobligationsrefertocommitmentbytheCompanyinthecontracttotransferclearlyidentifiablegoodsorservicestothecustomer..
Obtainingcontroloverrelevantgoodsreferstotheabilitytodirecttheuseofthegoodsandreceivealmostalloftheeconomicbenefitsfromthem.
TheCompanyevaluatesacontractatthecommencementdatetoidentifyindividualperformanceobligationsanddeterminewhetherthoseobligationsaretobefulfilledoveraperiodorataspecificmoment.Ifoneofthefollowingconditionsismet,theobligationsareconsideredtobefulfilledoveraperiod,andrevenueisrecognizedbytheCompanyoverthedefinedperiodbasedontheprogressionoffulfillment:(1)thecustomersimultaneouslyreceivesandconsumesthebenefitsderivedfromtheCompany'sperformance;(2)thecustomercanexercisecontroloverthegoodsunderconstructionduringtheCompany'sperformance;(3)thegoodsproducedbytheCompanyduringperformanceserveanindispensablepurposeandtheCompanyhastherighttoreceivepaymentforthecumulativeperformanceuptonowovertheentirecontractperiod.Otherwise,theCompanyrecognizerevenueatthemomentwhenthecustomerobtainscontroloftherelevantgoodsorservices.
Forperformanceobligationsfulfilledoveraperiod,theCompanydeterminestheappropriateprogressusingtheoutputmethod/inputmethodbasedonthenatureofthegoodsandservices.Theoutputmethoddeterminestheperformanceprogressbasedonthevalueofthegoodstransferredtothecustomer(theinputmethoddeterminestheperformanceprogressbasedontheCompany’sinputstofulfillitsperformanceobligations).Whentheperformanceprogresscannotbereasonablydetermined,andthecostsalreadyincurredislikelytobereimbursed,revenueisrecognizedbasedontheamountofcostsincurreduntiltheperformanceprogresscanbereasonablydetermined.
2.SpecificMethodsforRevenueRecognitionTheCompany'sbusinessofsellingproductssuchasfoodflavorandtextureoptimizationproducts,animalnutritionaminoacidsandhumanmedicalaminoacidstypicallyonlyinvolvestheobligationtotransfergoods.Therevenuerecognitionpolicyprimarilymakesadistinctionbetweendomesticandexportcustomerclassifications.Thespecificmethodsforrevenuerecognitionareasfollows:
DomesticSales:Accordingtothecontractsororderssignedwiththecustomer,revenuerealizationisrecognizedbytheCompanyatthemomentwhengoodsaredeliveredtothecustomer,andthecustomertakescontroloverthegoodsuponreceipt.
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ExportSales:Accordingtothecontractsororderssignedwiththecustomer,salesrevenuerealizationisrecognizedbytheCompanyontheexportdatespecifiedonthecustomdeclaration,uponthecompletionofloadinggoodsontothevessel,thecompletionofcustomsclearanceprocedures,andthetransferofcontroltransferofthegoods.
3.RevenueTreatmentPrinciplesforSpecificTransactions
(1)ContractswithSalesReturnProvisions
Forsalescontractswithsalesreturnprovisions,theCompanyrecognizesrevenuewhenthecustomerobtainscontroloftherelatedgoodsbasedontheamountofconsiderationexpectedtobereceivedfromtransferringgoodstothecustomer(excludingtheamountexpectedtoberefundedduetosalesreturns),andrecognizesliabilitiesbasedontheamountexpectedtoberefundedduetosalesreturns.Additionally,thebalanceafterdeductingtheestimatedcost(includingthedepreciationinthevalueofthereturnedgoods)ofreturningthegoodsfromthebookvalueofthegoodsexpectedtobereturnedatthetimeoftransferisrecognizedasanasset.Subsequently,thenetamountafterdeductingthecostoftheassetfromthebookvalueofthegoodsatthetimeoftransferiscarriedforwardascost.
(2)ContractswithQualityAssuranceProvisions
Forsalescontractswithqualityassuranceprovisions,ifthequalityassuranceprovidesaseparateservicebeyondassuringthatthegoodsorservicessoldmeetestablishedstandards,itconstitutesaseparateperformanceobligation.Otherwise,theCompanyaccountsforthequalityassuranceresponsibilityaccordingtotheAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.
(3)ContractswithCustomerOptionsforAdditionalPurchases
Customeroptionsforadditionalpurchasesincludesalesincentivemeasures,additionaldiscountsforfuturegoodsorservices,etc.Foroptionsforadditionalpurchasesthatprovidethecustomerwithsignificantrights,theCompanytreatsthemasseparateperformanceobligationsandrecognizesrelevantrevenueswhenthecustomerexercisesthepurchaseoptionstoobtaincontroloverrelevantgoodsorservicesinthefutureorwhentheoptionsexpire.Whenthestandalonesellingpriceofcustomeroptionsforadditionalpurchasescannotbedirectlyobserved,theCompanyestimatesitbyconsideringallrelevantinformation,includingdifferencesindiscountsobtainedfromexercisingandnotexercisingtheoptionsandthelikelihoodofexercisingtheoptions.
(4)Principalvs.Agent
TheCompanydetermineswhetheritactsasaprincipaloranagentbasedonwhetherithascontroloverthegoodsorservicesbeforetransferringthemtothecustomer.Ifthecompanycanexercisecontroloverthegoodsorservicesbeforetransferringthemtothecustomer,itactsasaprincipalandrecognizesrevenuebasedonthetotalconsiderationreceivedorreceivable.Otherwise,thecompanyactsasanagentandrecognizesrevenuebasedontheamountofcommissionorhandlingfeesexpectedtobeentitledtoreceive.Suchamountisdeterminedbydeductingtheamountspayabletootherrelatedpartiesfromthetotalconsiderationreceivedorreceivable.
(2)DifferentRevenueRecognitionandMeasurementMethodsforSimilarBusinesseswithDifferentOperatingModels
□Applicable?NotApplicable
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35.ContractCosts
?Applicable□NotApplicable1．ContractPerformanceCosts
CostsincurredbytheCompanytoperformcontractsarerecognizedasanassetiftheymeetallofthefollowingconditionsandarenotwithinthescopeofotherAccountingStandardsforBusinessEnterprisesexcludingrevenuestandards:
(1)Thecostisdirectlyrelatedtoacontracteithercurrentlyorexpectedtobeobtained,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),costsexplicitlybornebythecustomer,andothercostsincurredsolelyduetothecontract;
(2)ThecostincreasestheresourcesavailablefortheCompanytofulfillitsperformanceobligations;
(3)Thecostisexpectedtoberecoverable.
Thisassetispresentedunderinventoriesorothernon-currentassetsbasedonwhethertheamortizationperiodexceedsonenormaloperatingcycleatthetimeofinitialrecognition.2．ContractObtainingCosts
IncrementalcostsincurredbytheCompanytoobtaincontractsandexpectedtoberecoverablearerecognizedasanasset.Incrementalcostsrefertocoststhatwouldnothavebeenincurredifthecontracthadnotbeenobtained,suchassalescommissions.Foramortizationperiodsnotexceedingoneyear,theyarerecordedintheprofitorlossforthecurrentperiodwhenincurred.3．AmortizationofContractCosts
Assetsrelatedtocontractcostsmentionedaboveareamortizedbasedonthesamebasisastherevenuerecognitionforgoodsorservicesrelatedtotheassets,eitheratthetimeofperformanceobligationfulfillmentorbasedontheprogressofperformanceobligationfulfillment,andrecordedintheprofitorlossforthecurrentperiod.4．ImpairmentofContractCostsIfthebookvalueoftheaforementionedassetsrelatedtocontractcostsexceedsthedifferencebetweentheresidualconsiderationexpectedtobeobtainedbytheCompanyfromthetransferofgoodsrelatedtotheseassetsandtheestimatedcoststobeincurredforthetransfer,theexcessshouldbesetasideimpairmentprovisionandrecognizedasanimpairmentloss.Aftertheimpairmentprovision,iftherearechangesinimpairmentfactorsinpreviousperiods,resultingintheabovedifferenceexceedingthebookvalueoftheassets,theprovisionforimpairmentlosspreviouslyaccruedshallbereversed,andrecordedintheprofitorlossforthecurrentperiod.However,thebookvalueoftheassetsafterreversalshouldnotexceedthatonthereversaldateundertheassumptionofnoaccrualofimpairmentprovision.
36.GovernmentGrants
?Applicable□NotApplicable
1．TypesGovernmentgrantsrefertomonetaryassetsandnon-monetaryassetsobtainedbytheCompanyfromthe
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governmentwithoutcharge.Accordingtothebeneficiariesstipulatedinrelevantgovernmentdocuments,governmentgrantsareclassifiedintoasset-relatedgovernmentgrantsandrevenue-relatedgovernmentgrants.Asset-relatedgovernmentgrantsarethoseobtainedbytheCompanyfortheacquisition,construction,orformationoflong-termassetsbyothermeans.Revenue-relatedgovernmentgrantsrefertogovernmentgrantsotherthanasset-relatedgovernmentgrants.
2．RecognitionofGovernmentGrants
GovernmentgrantsarerecognizedattheamountreceivableifthereisevidenceattheendoftheperiodthattheCompanycanmeettherelevantconditionsstipulatedinthefinancialsupportpolicyandisexpectedtoreceivefinancialsupportfunds.Otherwise,governmentgrantsarerecognizedwhenactuallyreceived.Governmentgrantsintheformofmonetaryassetsaremeasuredattheamountreceivedorreceivable.Governmentgrantsintheformofnon-monetaryassetsaremeasuredatfairvalue;iffairvaluecannotbereliablyobtained,theyaremeasuredatthenominalamount(RMB1yuan).Governmentgrantsmeasuredatnominalamountsaredirectlyrecordedintheprofitorlossforthecurrentperiod.3．AccountingTreatmentMethodTheCompanydetermineswhetheracertaintypeofgovernmentgrantmattershouldbeaccountedforusingthegrossmethodorthenetmethodbasedonthesubstanceoftheeconomicmatter.Typically,theCompanyselectsonlyonemethodforsameorsimilargovernmentgrantmattersandconsistentlyappliesthatmethodtothematter.
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Items
| Items | AccountingContent |
| CategoryofGovernmentGrantsAccountedforUsingtheGrossMethod | Governmentgrantsrelatedtoanythingotherthanloansofdiscountinterest |
| CategoryofGovernmentGrantsAccountedforUsingtheNetMethod | Governmentgrantsrelatedtoloansofpolicy-orientedpreferentialinterestrate |
Asset-relatedgovernmentgrantsshouldeitherbeoffsetagainstthebookvalueofrelatedassetsorberecognizedasdeferredrevenues.Asset-relatedgovernmentgrantsrecognizedasdeferredrevenuesshouldbereasonablyandsystematicallyrecordedinprofitorlossovertheusefullifeoftheconstructedorpurchasedassets.Revenue-relatedgovernmentgrantsusedtocompensateforexpensesorlossesinfutureperiodsarerecognizedasdeferredrevenuesandarerecordedinprofitorlossforthecurrentperiodoroffsetagainstrelatedcostswhentherelatedexpensesorlossesarerecognized.GrantsusedtocompensateforexpensesorlossesalreadyincurredbytheCompanyarerecordeddirectlyinprofitorlossforthecurrentperiodoroffsetagainstrelatedcostsuponreceipt.
GovernmentgrantsrelatedtotheCompany’sordinaryactivitiesarerecordedinotherincomeoroffsetagainstrelatedcosts.GovernmentgrantsunrelatedtotheCompany'sordinaryactivitiesarerecordedinnon-operatingincomeandexpenses.
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Governmentgrantsreceivedrelatedtoloansofpolicy-orientedpreferentialinterestareoffsetagainstrelatedborrowingcosts.Ifloansofpolicy-orientedpreferentialinterestratesprovidedbybanksareobtained,theactualamountreceivedistreatedastheentryvalueoftheloans,andtherelatedborrowingcostsarecalculatedbasedontheloanprincipalandthepreferentialinterestrate.Whengovernmentgrantsalreadyrecognizedneedtoberefunded,adjustmentsaremadetothebookvalueofrelatedassetsiftheyareoffsetagainstthebookvalueoftheassets;thebookbalanceofrelateddeferredrevenuesisoffsetiftherearebalancesintherelateddeferredrevenuesandthesurplusisrecordedintheprofitorlossforthecurrentperiod;andthesurplusisrecordeddirectlyinprofitorlossforthecurrentperiodiftherearenobalancesintherelateddeferredrevenues.
37.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
?Applicable□NotApplicable
Deferredincometaxassetsanddeferredincometaxliabilitiesarecalculatedandrecognizedbasedonthedifferencebetweenthetaxbasisandbookvalueofassetsandliabilities(temporarydifferences).Asofthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesaremeasuredusingthetaxratesapplicableduringtheperiodwhentheassetsareexpectedtoberecoveredorsettled.
1．RecognitionBasisforDeferredIncomeTaxAssets
TheCompanyrecognizesdeferredincometaxassetsgeneratedfromdeductibletemporarydifferences,totheextentthatitisprobabletoutilizethemagainsttaxableincomethatcanbeoffsetbydeductibletemporarydifferencesandcancarryforwarddeductiblelossesandtaxesinthesubsequentyears.However,deferredincometaxassetsarisingfromtheinitialrecognitionofassetsorliabilitiesintransactionsandexhibitingthefollowingcharacteristicsarenotrecognized:(1)thetransactiondoesnotqualifyasanenterprisemerger;(2)thetransactionneitheraffectsaccountingprofitnortaxableprofitordeductiblelosseswhenitoccurs.
Fordeductibletemporarydifferencesrelatedtoinvestmentsinassociates,deferredincometaxassetsarerecognizedifthefollowingconditionsaremetsimultaneously:thetemporarydifferencesarelikelytoreverseintheforeseeablefuture,andtaxableprofitarelikelyavailableinthefuturetooffsetdeductibletemporarydifferences.2．RecognitionBasisforDeferredIncomeTaxLiabilities
TheCompanyrecognizesthetaxabletemporarydifferencesthatareduebutunpaidinthecurrentandpreviousperiodsasdeferredincometaxliabilities,excepttotheextentthat:
(1)Thetemporarydifferencearisesfromtheinitialrecognitionofgoodwill;
(2)Thetemporarydifferencearisesfromtransactionsormattersthatdidn’tarisefromenterprisemergerandneitheraffectedtheaccountingprofitsnortaxableprofit(ordeductiblelosses);
(3)Fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiariesorassociates,thereversalofthetemporarydifferencescanbecontrolledanditisprobablethatthetemporarydifferenceswillnotreverseintheforeseeablefuture.3．Whenthefollowingconditionsaremetsimultaneously,deferredincometaxassetsanddeferred
incometaxliabilitiesarepresentedasthenetamountafteroffset
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(1)TheCompanyhasthelegalrighttosettlecurrentincometaxassetsandliabilitiesonanetbasis;
(2)Deferredincometaxassetsanddeferredincometaxliabilitiesrelateeithertoincometaxesleviedbythesametaxauthorityonthesametaxableentityortodifferenttaxableentities.However,foreachsignificantperiodinwhichdeferredincometaxassetsanddeferredincometaxliabilitiesarereversedinthefuture,theintentionoftheentityinvolvedistosettlethecurrentincometaxassetsandliabilitiesonanetbasisortosimultaneouslyobtainassetsandsettleliabilities.38Leasing
?Applicable□NotApplicableJudgementBasisandAccountingTreatmentMethodforSimplifiedDisposalofShort-termLeasesandLeasesofLow-valueAssetsasLessee?Applicable□NotApplicable
Atthecommencementoftheleaseterm,theCompanyrecognizesright-of-useassetsandleaseliabilitiesforleasesotherthanshort-termleasesandleasesoflow-valueassetssubjecttosimplifieddisposal.
(1)Short-termLeasesandLeasesofLow-valueAssets
Short-termleasesrefertoleasesthatdonotincludeapurchaseoptionwithaleasetermofnomorethan12months.Leasesoflow-valueassetsrefertoleaseswheretheindividualleasedasset,whenbrandnew,hasarelativelylowvalue,primarilyincludingleasesoftemporaryvehicles,officeequipment,etc.
TheCompanydoesnotrecognizeright-of-useassetsandleaseliabilitiesforthefollowingshort-termleasesandleasesoflow-valueassets.Therelatedleasepaymentsarerecordedinrelatedassetcostsorcurrentprofitorlossineachperiodoftheleasetermonastraight-linebasisorusingothersystematicandreasonablemethods.
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Items
| Items | CategoryofLeasedAssetsSubjecttoSimplifiedDisposal |
| Short-termLeases | Leasetermislessthanorequalto1year |
| LeasesofLow-valueAssets | Leasesofofficeequipmentwithlowunitvalue,etc. |
TheCompanyrecognizesright-of-useassetsandleaseliabilitiesforshort-termleasesandleasesoflow-valueassetsotherthanthosementionedabove.
(I)Right-of-UseAssets
TheCompanyinitiallymeasuresright-of-useassetsatcost,whichincludes:
1.Initiallymeasuredamountofleaseliabilities;
2.Leasepaymentsmadeonthecommencementdateoftheleasetermorbefore,deductinganyrelevantamountofleaseincentivesalreadyreceivedwhenthereareleaseincentives;
3.InitialdirectcostsincurredbytheCompany;
4.EstimatedcostsexpectedtobeincurredbytheCompanyfordismantlingandremovingleasedassets,restoringtheleasedassetsite,orrestoringleasedassetstotheconditionsspecifiedintheleaseagreement(excludingcostsincurredforproducinginventory).
Afterthecommencementdateoftheleaseterm,theCompanyusesthecostmodeltomeasureright-of-useassetssubsequently.
IfitisreasonablycertainthattheCompanywillobtainownershipoftheleasedassetattheendoftheleaseterm,theCompanywilldepreciatetheleasedassetoveritsremainingusefullife.IfitisnotreasonablycertainthattheCompanywillobtainownershipoftheleasedassetattheendoftheleaseterm,theCompany
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willdepreciatetheleasedassetovertheleasetermortheremainingusefullifeoftheleasedasset,whicheverisshorter.Forright-of-useassetswithprovisionforimpairment,theCompanywilldepreciatetheminfutureperiodsbasedonthebookvalueafterdeductingtheimpairmentprovision,followingtheaboveprinciples.TheCompanydetermineswhetherright-of-useassetshavebeenimpairedandaccountsforanyidentifiedimpairmentlossesinaccordancewiththeprovisionsofAccountingStandardforBusinessEnterprisesNo.8–AssetImpairment.Fordetails,pleaserefertoSection27–ImpairmentofLong-termAssets.(II)LeaseLiabilitiesTheCompanyinitiallymeasuresleaseliabilitiesatthepresentvalueofleasepaymentsnotyetpaidasoftheleasecommencementdate.Whencalculatingthepresentvalueofleasepayments,theCompanyusestheinterestrateimplicitintheleaseasthediscountrate;iftheinterestrateimplicitintheleasecannotbedetermined,theCompanyusesitsincrementalborrowingrateasthediscountrate.Leasepaymentsinclude:
1.Fixedpaymentsandsubstantiallyfixedpaymentsafterdeductingrelatedamountoftheleaseincentives;
2.Variableleasepaymentsdependentonanindexorrate;
3.IncaseswheretheCompanyreasonablydeterminestheexerciseofthepurchaseoption,leasepaymentsincludetheexercisepriceofsuchoption;
4.IfitisevidentthattheCompanywillexercisetheoptiontoterminatetheleaseduringtheleaseterm,theleasepaymentsincludetheamountrequiredforexercisingthesaidterminationoption;
5.AmountsexpectedtobepaidforguaranteedresidualvalueprovidedbytheCompany.
TheCompanycalculatestheinterestexpenseofleaseliabilitiesforeachperiodoftheleasetermusingafixeddiscountrateandrecognizesitintheprofitorlossorrelatedassetcostforthecurrentperiod.
Variableleasepaymentsnotincludedinthemeasurementofleaseliabilitiesarerecordedinprofitorlossorrelatedassetcostfortheperiodwhentheyoccur.ClassificationCriteriaandAccountingTreatmentMethodforLeasesasLessor
?Applicable□NotApplicable
(1)ClassificationofLeases
TheCompanyclassifiesleasesintofinancingleasesandoperatingleasesonthecommencementdateofthelease.Financingleasesrefertoleasesthatsubstantiallytransferallrisksandrewardsrelatedtoownershipoftheleasedassettothelessee,withorwithoutultimatetransferoftheownership.Operatingleasesareleasesotherthanfinancingleases.
TheCompanygenerallyclassifiesaleaseasafinancingleaseifitmeetsoneormoreofthefollowingconditions:
1)Attheendoftheleaseterm,ownershipoftheleasedassetistransferredtothelessee.
2)Thelesseehastheoptiontopurchasetheleasedasset,andthepurchasepriceagreeduponissufficientlylowerthanthefairvalueoftheleasedassetatthetimetheoptionisexpectedtobeexercised,sothatitcanbereasonablydeterminedthatthelesseewillexercisetheoptiononthecommencementdateofthelease.
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3)Althoughownershipoftheassetisnottransferred,theleasetermrepresentsasubstantialportionoftheusefullifeoftheasset.
4)Onthecommencementdateofthelease,thepresentvalueofleasereceiptsissubstantiallyequaltothefairvalueoftheleasedasset.
5)Theleasedassetisofsuchaspecializednaturethatonlythelesseecanuseitwithoutmajormodifications.
TheCompanymayalsobeclassifiesaleaseasafinancingleaseifitalignswithoneormoreofthefollowingindicators:
1)Ifthelesseeterminatesthelease,anylossincurredbythelessorduetotheterminationisbornebythelessee.
2)Gainsorlossesresultingfromfluctuationsinthefairvalueoftheresidualvalueoftheassetattributetothelessee.
3)Thelesseeisabletoextendtheleaseforthenexttermatarentsignificantlybelowthemarketstandard.
(2)AccountingTreatmentofFinancingLeases
Onthecommencementdateoftheleaseterm,theCompanyrecognizesamountsreceivablefromfinancingleasesandderecognizesthefinanceleaseassets.
Attheinitialmeasurementofamountsreceivablefromfinancingleases,thesumoftheunguaranteedresidualvalueandthepresentvalueofleasereceiptsnotyetreceivedasofthecommencementdateoftheleasetermdiscountedattheinterestrateimplicitinleaseistreatedastheentryvalueoftheaccountsreceivablefromthefinancingleases.Leasereceiptsinclude:
1)Fixedpaymentsandsubstantialfixedpaymentsafterdeductingtherelatedamountofleaseincentives;
2)Variableleasepaymentsdependentonanindexorrate.
3)Incaseswhereitisreasonablycertainthatthelesseewillexerciseapurchaseoption,leasereceiptsincludetheexercisepriceofthepurchaseoption;
4)Ifitisevidentthatthelesseewillexercisetheoptiontoterminatethelease,leasereceiptsincludeamountspayablebythelesseeuponexerciseoftheterminationoption.
5)Guaranteedresidualvalueprovidedbythelessee,thepartyrelatedtothelessee,andindependentthirdpartieswiththeeconomiccapabilitytofulfillguaranteeobligationstothelessor.
TheCompanycalculatesandrecognizesinterestincomeforeachperiodoftheleasetermusingafixedleaserateimplicitinlease.Variableleasepaymentsnotincludedinthenetinvestmentintheleasearerecordedinprofitorlossfortheperiodwhenincurred.
(3)AccountingTreatmentofOperatingLeases
Foreachperiodoftheleaseterm,theCompanyrecognizesleasereceiptfromoperatingleasesusingthestraight-linemethodorothersystematicalandrationalmethodsasrentalincome.Initialdirectcostsincurredrelatedtooperatingleasesarecapitalizedandamortizedovertheleasetermonthesamebasisastherecognitionofrentalincomeandarerecordedintheprofitorlossforeachperiod.Variableleasepayments
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relatedtooperatingleasesbutnotincludedinleasereceiptsarerecordedinprofitorlossfortheperiodwhenincurred.
39.OtherSignificantAccountingPoliciesandEstimates?Applicable□NotApplicable
(1)RepurchaseoftheSharesTheconsiderationandtransactioncostspaidintherepurchaseoftheCompany’ssharesreduceshareholders'equity.Gainsorlossesarenotrecognizedduringrepurchase,transfer,orcancellationoftheCompany’sshares.
Whentransferringtreasuryshares,theCompanyrecordstheminthecapitalreservebasedonthedifferencebetweentheamountactuallyreceivedandthebookvalueofthetreasuryshares.Ifthecapitalreserveisinsufficienttooffset,theyareoffsetbythesurplusreserveandundistributedprofits.Whencancelingtreasuryshares,theCompanyreducessharecapitalbasedonthebookvalueofsharesandquantityofcanceledsharesandoffsetsthedifferencebetweenthebookbalanceandbookvalueofthecanceledtreasurysharesusingthecapitalreserve.Ifthecapitalreserveisinsufficienttooffset,theyareoffsetbythesurplusreserveandundistributedprofits.
(2)WorkSafetyFees
WorksafetyfeeswithdrawnbytheCompanyasspecifiedbythestatearerecordedinthecostsoftherelevantproductsorinprofitorlossforthecurrentperiodandsimultaneouslyrecordedintheaccountof"specialreserves".Whenthewithdrawnworksafetyfeesareutilizedasexpenses,theyaredirectlyoffsetagainstspecialreserves.Incaseswheretheworksafetyfeesformfixedassets,theexpendituresarisingfromtheaggregationoftheaccountof"constructioninprogress"arerecognizedasfixedassetswhenthesafetyprojectiscompletedandreachestheintendedusablestate.Simultaneously,thecostofformingfixedassetsisoffsetagainstspecialreserves,andthesameamountofaccumulateddepreciationisrecognized.Depreciationisnolongerprovidedforthesefixedassetsinsubsequentperiods.
40.ChangesinSignificantAccountingPoliciesandEstimates
(1)ChangesinSignificantAccountingPolicies?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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ContentofandReasonsforChangesinAccountingPolicies
| ContentofandReasonsforChangesinAccountingPolicies | NameofMateriallyAffectedStatementItems | AffectedAmount |
| TheCompanyhasadoptedtheInterpretationNo.17oftheAccountingStandardsforBusinessEnterprises–AccountingTreatmentofSaleandLeasebackTransactions,issuedbytheMinistryofFinancein2023,effectivefromJanuary1,2024. | （1） | |
| TheCompanyhasadoptedtheProvisionalRegulationsonAccountingTreatmentRelatedtoEnterpriseDataResources,issuedbytheMinistryofFinanceonAugust1,2023,effectivefromJanuary1,2024. | （2） | |
| TheCompanyhasadoptedtheInterpretationNo.18oftheAccountingStandardsforBusinessEnterprises,issuedbytheMinistryofFinanceonDecember6,2024,effectivefromthesamedate. | （3） |
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OtherExplanation
(1)ImpactoftheImplementationofInterpretationNo.17oftheAccountingStandardsforBusinessEnterprisesOnOctober25,2023,theMinistryofFinanceissuedtheInterpretationNo.17oftheAccountingStandardsforBusinessEnterprises(CK[2023]No.21,hereinafterreferredtoas“InterpretationNo.17”),whichhasbeenimplementedbytheCompanysinceJanuary1,2024(the“EffectiveDate”).TheCompanyhasappliedInterpretationNo.17fromtheEffectiveDate,anditsimplementationhashadnomaterialimpactonthefinancialstatementsforthecurrentreportingperiod.
1)ClassificationofCurrentandNon-currentLiabilities
FromtheEffectiveDate,theCompanyhasappliedtheprovisionsontheclassificationofcurrentandnon-currentliabilitiesinInterpretationNo.17.Theimplementationoftheseprovisionshashadnomaterialimpactonthefinancialstatementsforthecurrentreportingperiod.
2)DisclosuresonSupplierFinancingArrangements
AccordingtoInterpretationNo.17,theCompanyisnotrequiredtodisclosecomparativeperiodinformation.Additionally,theCompanyisnotrequiredtodisclosetheopeningbalancesof“theamountsreceivedbysuppliersfromfinancingprovidersincludedinfinancialliabilities”andtheopeningbalancesof“thematurityprofileoffinancialliabilitiesandthematurityprofileofcomparabletradepayablesnotincludedinsupplierfinancingarrangements.”
3)AccountingTreatmentofSaleandLeasebackTransactions
FromtheEffectiveDate,theCompanyhasappliedtheprovisionsontheaccountingtreatmentofsaleandleasebacktransactionsinInterpretationNo.17.Theimplementationoftheseprovisionshashadnomaterialimpactonthefinancialstatementsforthecurrentreportingperiod.
(2)ImpactoftheImplementationoftheProvisionalRegulationsonAccountingTreatmentRelatedtoEnterpriseDataResources
TheCompanyhasimplementedtheProvisionalRegulationsonAccountingTreatmentRelatedtoEnterpriseDataResources(hereinafterreferredtoasthe“ProvisionalRegulations”)sinceJanuary1,2024.TheimplementationoftheProvisionalRegulationshashadnomaterialimpactonthefinancialstatementsforthecurrentreportingperiod.
(3)ImpactoftheImplementationofInterpretationNo.18oftheAccountingStandardsforBusinessEnterprises
OnDecember6,2024,theMinistryofFinanceissuedtheInterpretationNo.18oftheAccountingStandardsforBusinessEnterprises(CK[2024]No.24,hereinafterreferredtoas“InterpretationNo.18”),whichtheCompanyhasimplementedfromthesamedate.TheimplementationofInterpretationNo.18hashadnomaterialimpactonthefinancialstatementsforthecurrentreportingperiod.
(2)SignificantChangesinAccountingEstimates
□Applicable?NotApplicable
(3)FinancialStatementsInvolvingAdjustmentstotheFirst-TimeImplementationofNewAccountingStandardsorInterpretationsfrom2024Onward
□Applicable?NotApplicable
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41Others
□Applicable?NotApplicableVI.Taxes
1.MajorTaxTypesandTaxRatesMajorTaxTypesandTaxRates
?Applicable□NotApplicable
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TaxType
| TaxType | BasisofTaxation | TaxRate |
| Value-addedTax | DomesticSales | 13%、9%、0% |
| ProvisionofRealEstateLeasingServices | 9% | |
| OtherTaxableSalesandServices | 6% | |
| SimplifiedTaxCalculationMethod | 5%or3% | |
| ConsumptionTax | ||
| BusinessTax | ||
| UrbanMaintenanceandConstructionTax | ActuallyPaidTurnoverTaxAmount | 7%、5% |
| CorporateIncomeTax | TaxableIncome | 15%、16.5%、20%、25%、0%、17% |
| PropertyTax | Thetaxbaseis70%oftheoriginalvalueoftheproperty(orrentalincome). | 1.2%、12% |
| EducationSurcharge | ActuallyPaidTurnoverTaxAmount | 3% |
| LocalEducationSurcharge | ActuallyPaidTurnoverTaxAmount | 2% |
Elaborationonthedisclosureofentitiestaxedatdifferingcorporateincometaxrates.
?Applicable□NotApplicable
| TaxpayerName | IncomeTaxRate(%) |
| TheCompany | 15 |
| MeihuaGroupInternationalTrading(HongKong)Limited(hereinafterreferredtoas"HongKongMeihua")* | 16.5 |
| LangfangMeihuaSeasoningCo.,Ltd.(hereinafterreferredtoas"LangfangSeasoning") | 25 |
| TongliaoMeihuaSeasoningCo.,Ltd.(hereinafterreferredtoas"TongliaoSeasoning") | 25 |
| LangfangMeihuaBio-TechnologyDevelopmentCo.,Ltd.(hereinafterreferredtoas"LangfangDevelopment") | 15 |
| LangfangBAIANTechnologyCo.,Ltd.(hereinafterreferredtoas"LangfangBAIAN") | 25 |
| Meihua(Shanghai)BiotechnologyCo.,Ltd.(hereinafterreferredtoas"ShanghaiR&D") | 20 |
| LhasaMeihuaBiologicalInvestmentHoldingCo.,Ltd.(hereinafterreferredtoas"LhasaMeihua") | 15 |
| TongliaoMeihuaBiotechnologyCo.,Ltd.(hereinafterreferredtoas"TongliaoMeihua") | 15 |
| TongliaoJianlongChemicalCo.,Ltd.(hereinafterreferredtoas“TongliaoJianlong”) | 25 |
| TongliaoTongdeStarchCo.,Ltd.(hereinafterreferredtoas"TongdeStarch") | 20 |
| XinjiangMeihuaAminoAcidCo.,Ltd.(hereinafterreferredtoas"XinjiangMeihua") | 15 |
| XinjiangMeihuaAgriculturalDevelopmentCo.,Ltd.(hereinafterreferredtoas"XinjiangAgriculture") | 25 |
| XinjiangMeihuaInvestmentCo.,Ltd.(hereinafterreferredtoas"XinjiangInvestment") | 20 |
| WujiaquJianlongChemicalCo.,Ltd.(hereinafterreferredtoas“WujiaquJianlong”) | 20 |
| JilinMeihuaAminoAcidCo.,Ltd.(hereinafterreferredtoas"JilinMeihua") | 15 |
| ZhuhaiHengqinMeihuaBiotechnologyCo.,Ltd.(hereinafterreferredtoas"HengqinMeihua") | 25 |
| HONGKONGPLUMHOLDINGLIMITED(hereinafterreferredtoas"HongKongHoldings") | 16.5 |
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CAYMANPLUMHOLDINGLIMITED(hereinafterreferredtoas"CaymanCompany")
| CAYMANPLUMHOLDINGLIMITED(hereinafterreferredtoas"CaymanCompany") | 0 |
| PLUMBIOTECHNOLOGYGROUPPTE.LTD.(hereinafterreferredtoas“SingaporeCompany”) | 17 |
*SubsidiariesoftheCompany,HongKongMeihua,andHongKongHoldingsarewholly-ownedsubsidiariesregisteredwiththeCompaniesRegistryofHongKong.Theprofitstaxisbasedonatwo-tieredtaxsystem,withataxrateof8.25%forthefirstHKD2millionofprofitsand16.5%thereafter.
2.TaxBenefits?Applicable□NotApplicable
1.IncomeTaxBenefits
(1)TheCompanyisregisteredinLhasaCity,TibetAutonomousRegion.AccordingtothedocumentPeople'sGovernmentofTibetAutonomousRegionZZF[2014]No.51-ImplementationMeasuresforCorporateIncomeTaxPoliciesinTibetAutonomousRegion,enterprisesintheTibetAutonomousRegionaresubjecttoaunifiedcorporateincometaxrateof15%undertheStrategyoftheWesternDevelopment.
(2)LangfangR&D,asubsidiaryoftheCompany,wascertifiedasahigh-techenterprisebytheHebeiHigh-techEnterpriseCertificationandManagementWorkingGrouponNovember22,2022,withcertificateNo.GR202213002637.ThecertificateisvalidfromNovember22,2022,toNovember22,2025.Corporateincometaxisleviedatarateof15%forthefiscalyear2024.
(3)JilinMeihua,asubsidiaryoftheCompany,wascertifiedasahigh-techenterprisebytheJilinHigh-techEnterpriseCertificationandManagementWorkingGrouponNovember1,2024,withcertificateNo.GR202422000344.Thevalidityperiodisthreeyears,andin2024,thecorporateincometaxwillbeleviedatarateof15%.
(4)TongliaoMeihuaandXinjiangMeihua,subsidiariesoftheCompany,areentitledtoareducedcorporateincometaxrateof15%forenterprisesengagedinencouragedindustriesinthewesternregion,asstipulatedintheAnnouncementNo.23[2020]oftheMinistryofFinance-AnnouncementoftheMinistryofFinance,theStateTaxationAdministration,andtheNationalDevelopmentandReformCommissionontheContinuationoftheCorporateIncomeTaxPolicyfortheDevelopmentoftheWesternRegionfromJanuary1,2021,toDecember31,2030.
(5)AccordingtotheAnnouncementNo.6[2023]oftheStateTaxationAdministrationandtheMinistryofFinance-AnnouncementoftheMinistryofFinanceontheIncomeTaxPreferentialPoliciesforSmallandMicroEnterprisesandIndividualIndustrialandCommercialBusinesses,TongdeStarch,asubsidiaryoftheCompany,isentitledtoataxincentive.Fortheportionofannualtaxableincomeofsmall-scaleandmicro-profitenterprisesnotexceedingRMB1millionyuan,areducedrateof25%isappliedtothetaxableincome,andthecorporateincometaxisleviedatarateof20%.AccordingtotheNoticeIssuedbythePartyCommitteeandPeople'sGovernmentoftheInnerMongoliaAutonomousRegion(NDF[2018]No.23),theportionoflocalshareofcorporateincometax(i.e.,40%)isexempted,andasstipulatedintheNoticeonAdjustingtheImplementationPeriodofPoliciesRelatedtotheDocumentNDF[2018]No.23(NDBFD[2022]No.3),theexecutionperiodofthetaxpreferentialpoliciesspecifiedinArticle1,Clause1ofthisdocument(excludingstampduty)isextendeduntilDecember31,2025,effectivefromJanuary1,2022.
(6)AccordingtotheAnnouncementNo.6[2023]oftheStateTaxationAdministrationandtheMinistryofFinance-AnnouncementoftheMinistryofFinanceontheIncomeTaxPreferentialPoliciesforSmalland
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MicroEnterprisesandIndividualIndustrialandCommercialBusinesses,XinjiangInvestment,ShanghaiR&DandWujiaquJianlong,subsidiariesoftheCompany,areentitledtoataxincentive.Fortheportionofannualtaxableincomeofsmall-scaleandmicro-profitenterprisesnotexceedingRMB1millionyuan,areducedrateof25%isappliedtothetaxableincome,andthecorporateincometaxisleviedatarateof20%.
(7)AccordingtoArticleVofDocumentZZF[2022]No.11-NoticeofthePeople’sGovernmentoftheTibetAutonomousRegiononIssuanceoftheInterimMeasuresfortheImplementationofCorporateIncomeTaxPoliciesintheTibetAutonomousRegion,LhasaMeihua,asubsidiaryoftheCompany,isentitledtoexemptionfromthelocalportionofcorporateincometaxandshouldpaycorporateincometaxatarateof15%,providedthatitabsorbsmorethan70%ofthepermanentresidentsinTibetandemploysmorethan15individualsfromJanuary1,2022toDecember31,2025.
3.Others
□Applicable?NotApplicableVII.NotestoConsolidatedFinancialStatements
1.MonetaryFunds?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | EndingBalance | BeginningBalance |
| CashonHand | ||
| BankDeposits | 4,112,897,142.87 | 4,773,515,435.82 |
| OtherMonetaryFunds | 447,591,156.66 | 179,642,319.01 |
| UnexpiredInterestReceivable | 567,894.43 | 16,636,727.56 |
| DepositswithFinancialCompanies | ||
| Total | 4,561,056,193.96 | 4,969,794,482.39 |
| Including:TotalAmountDepositedOverseas | 1,075,992,001.16 | 447,124,553.09 |
OtherExplanations
1.Detailsofrestrictedmonetaryfundsareasfollows:
2.Whenpreparingthecashflowstatement,theCompanydeductedtherestrictedmonetaryfundsfromtheendingcashandcashequivalents.
2.FinancialAssetsHeldforTrading
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance | Reasonand |
Items
| Items | EndingBalance | BeginningBalance |
| BankAcceptanceDraftGuaranteeDeposit | 428,515,211.93 | 170,164,905.10 |
| Others | 113,485.46 | 2,378,407.00 |
| Total | 428,628,697.39 | 172,543,312.10 |
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BasisforDesignation
| BasisforDesignation | |||
| FinancialAssetsMeasuredatFairValuewithChangesinFairValueRecordedintheProfitorLossfortheCurrentPeriod | 312,033,611.07 | 172,376,801.33 | / |
| Including: | |||
| Others | 312,033,611.07 | 172,376,801.33 | / |
| FinancialAssetsDesignatedasBeingMeasuredatFairValuewithChangesinFairValueRecordedintheProfitorLossfortheCurrentPeriod | |||
| Including: | |||
| Total | 312,033,611.07 | 172,376,801.33 | / |
OtherExplanations:
?Applicable□NotApplicableFinancialassetsheldfortradingrefertowealthmanagementproductspurchasedbytheCompanyanditssubsidiaries.
3.DerivativeFinancialAssets
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| DerivativeFinancialAssets | -- | 200,000.00 |
| Total | -- | 200,000.00 |
OtherExplanations:
None
4.NotesReceivable
(1)ClassifiedPresentationofNotesReceivable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| BankAcceptanceNotes | 73,697,475.30 | 129,231,952.45 |
| CommercialAcceptanceNotes | ||
| Total | 73,697,475.30 | 129,231,952.45 |
AsofDecember31,2024,theCompanybelievesthatthenotesreceivablehelddonothavesignificantcreditrisksandwillnotincursignificantlossesduetodefaultbybanksorotherissuers.
(2)NotesreceivablethathavebeenpledgedbytheCompanyattheendoftheperiod
□Applicable?NotApplicable
(3)NotesreceivablethathavebeenendorsedordiscountedbytheCompanyattheendoftheperiodandarenotdueasofthebalancesheetdate
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | Amountderecognizedasattheendof | Amountnotderecognizedasattheendof |
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theperiod
| theperiod | theperiod | |
| BankAcceptanceNotes | 72,997,010.50 | |
| CommercialAcceptanceNotes | ||
| Total | 72,997,010.50 |
(4)ClassifiedDisclosurebytheBadDebtProvisionMethod
□Applicable?NotApplicableProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesonaPortfolioBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReservesNoneExplanationofSignificantChangesintheBookValueofNotesReceivablewithChangesinLossReservesduringtheCurrentPeriod:
□Applicable?NotApplicable
(5)StatusofBadDebtReserves
□Applicable?NotApplicableIncludingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(6)NotesReceivableActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offsofsignificantnotesreceivable:
□Applicable?NotApplicableExplanationofWrite-offsofNotesReceivable:
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
5.AccountsReceivable
(1)DisclosurebyAging
□Applicable?NotApplicable
Unit:YuanCurrency:RMB
| Aging | EndingBookValue | BeginningBookValue |
| Within1year | ||
| Including:Sub-itemsforwithin1year | ||
| Within1year | 617,940,479.57 | 674,710,891.63 |
| Within1yearSubtotal | 617,940,479.57 | 674,710,891.63 |
| 1to2years | 962,314.02 | 169,486.86 |
| 2to3years | ||
| Over3years | ||
| 3to4years | ||
| 4to5years | ||
| Over5years | ||
| Total | 618,902,793.59 | 674,880,378.49 |
(2)ClassifiedDisclosurebyBadDebtProvisionMethods
?Applicable□NotApplicable
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Unit:YuanCurrency:RMB
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Category
| EndingBalance | BeginningBalance | ||||||||
| BookBalance | BadDebtReserves | BookValue | BookBalance | BadDebtReserves | BookValue | ||||
| Amount | Ratio(%) | Amount | ProvisionRatio(%) | Amount | Ratio(%) | Amount | ProvisionRatio(%) | ||
ProvisionsforBadDebtReservesonanIndividual-itemBasis
Including:
ProvisionsforBadDebtReservesonaPortfolioBasis:
| 618,902,793.59 | 100.00 | 30,993,255.38 | 5.01 | 587,909,538.21 | 674,880,378.49 | 100.00 | 33,752,493.27 | 5.00 | 641,127,885.22 |
Including:
Including:AgingAnalysisPortfolio
| 618,902,793.59 | 100.00 | 30,993,255.38 | 5.01 | 587,909,538.21 | 674,880,378.49 | 100.00 | 33,752,493.27 | 5.00 | 641,127,885.22 |
Total
| 618,902,793.59 | / | 30,993,255.38 | / | 587,909,538.21 | 674,880,378.49 | / | 33,752,493.27 | / | 641,127,885.22 |
ProvisionsforBadDebtReservesonanIndividual-item:
□Applicable?NotApplicable
ProvisionsforBadDebtReservesonaPortfolioBasis:
?Applicable□NotApplicable
ItemsforProvisiononaPortfolioBasic:AgingAnalysisPortfolio
Unit:YuanCurrency:RMB
| Name | EndingBalance | ||
| AccountsReceivable | BadDebtReserves | ProvisionRatio(%) | |
| Within1year | 617,940,479.57 | 30,897,023.98 | 5.00 |
| 1-2years | 962,314.02 | 96,231.40 | 10.00 |
| Total | 618,902,793.59 | 30,993,255.38 | 5.01 |
ExplanationofProvisionsforBadDebtReservesonaPortfolioBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReservesNoneExplanationofSignificantChangesintheBookValueofAccountsReceivablewithChangesinLossReservesduringtheCurrentPeriod:
□Applicable?NotApplicable
(3)StatusofBadDebtReserves
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | BeginningBalance | AmountofChangesduringtheCurrentPeriod | EndingBalance | |||
| Provision | RecoveredorReversed | Writtenoff | OtherChanges | |||
| NotesReceivablewithProvisionsforBadDebtReservesonanIndividual-itemBasis | ||||||
| NotesReceivablewithProvisionsforBadDebtReservesonaPortfolioBasis | 33,752,493.27 | 2,759,237.89 | 30,993,255.38 | |||
| Including:AgingAnalysisPortfolio | 33,752,493.27 | 2,759,237.89 | 30,993,255.38 | |||
| Total | 33,752,493.27 | 2,759,237.89 | 30,993,255.38 | |||
Includingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicable
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OtherExplanations:
None
(4)AccountsReceivableActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantaccountsreceivable:
□Applicable?NotApplicableExplanationofWrite-offofAccountsReceivable:
□Applicable?NotApplicable
(5)OverviewofAccountsReceivableandContractAssetsRankingTopFiveinEndingBalancesAggregatedbyDebtors?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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EntityName
| EntityName | EndingBalancesofAccountsReceivable | EndingBalancesofContractAssets | EndingBalancesofAccountsReceivableandContractAssets | ProportionintheTotalAmountofEndingBalancesofAccountsReceivableandContractAssets(%) | EndingBalancesofBadDebtReserves |
| First | 139,397,161.67 | 139,397,161.67 | 22.52 | 6,969,858.08 | |
| Second | 80,300,218.29 | 80,300,218.29 | 12.97 | 4,015,010.91 | |
| Third | 75,171,118.74 | 75,171,118.74 | 12.15 | 3,758,555.94 | |
| Fourth | 44,688,085.87 | 44,688,085.87 | 7.22 | 2,234,404.29 | |
| Fifth | 34,996,686.63 | 34,996,686.63 | 5.65 | 1,749,834.33 | |
| Total | 374,553,271.20 | 374,553,271.20 | 60.51 | 18,727,663.55 |
OtherExplanations:
NoneOtherExplanations:
?Applicable□NotApplicable
Accountsreceivablederecognizedduetonon-transferoffinancialassetsattheendoftheperiodAmountofassetsandliabilitiesarisingfromnon-transferofaccountsreceivableandcontinuedinvolvementAttheendoftheperiod,therewerenoamountsreceivablefromshareholderunitsholding5%ormoreoftheCompany’svotingshares.Pleasereferto(6)intheSectionXIV-RelatedPartiesandRelatedTransactionsforotheramountsreceivablefromrelatedparties.
6.ContractAssets
(1)StatusofContractAssets
□Applicable?NotApplicable
(2)AmountofandReasonsforSignificantChangesinBookValueduringtheReportingPeriod
□Applicable?NotApplicable
(3)ClassifiedDisclosurebyBadDebtProvisionMethods
□Applicable?NotApplicableProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableExplanationofProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesonaPortfolioBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReservesNoneExplanationofsignificantchangesinthebookbalanceofcontractassetswithchangesinlossreservesduringthecurrentperiod:
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□Applicable?NotApplicable
(4)StatusofProvisionsforBadDebtReservesforContractAssetsduringtheCurrentPeriod
□Applicable?NotApplicableIncludingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(5)StatusofContractAssetsActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantcontractassets
□Applicable?NotApplicableExplanationofWrite-offofContractAssets:
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
7.ReceivablesFinancing
(1)ClassifiedPresentationofReceivablesFinancing
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | EndingBalance | BeginningBalance |
| NotesReceivable | 26,575,904.82 | 59,999,269.30 |
| AccountsReceivable | 147,150.17 | 13,900.68 |
| Total | 26,723,054.99 | 60,013,169.98 |
(2)ReceivablesFinancingthathavebeenpledgedbytheCompanyattheendoftheperiod
□Applicable?NotApplicable
(3)ReceivablesFinancingthathavebeenendorsedordiscountedbytheCompanyattheendoftheperiodandarenotdueasofthebalancesheetdate
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | Amountderecognizedasattheendoftheperiod | Amountnotderecognizedasattheendoftheperiod |
| BankAcceptanceNotes | 411,409,190.09 | |
| AccountsReceivableFactoring | ||
| Total | 411,409,190.09 |
(4)ClassifiedDisclosurebyBadDebtProvisionMethods
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | EndingBalance | BeginningBalance | ||||||||
| BookBalance | BadDebtReserves | BookValue | BookBalance | BadDebtReserves | BookValue | |||||
| Amount | Ratio(%) | Amount | ProvisionRatio(%) | Amount | Ratio(%) | Amount | ProvisionRatio(%) | |||
| ProvisionsforBadDebtReservesonanIndividual-itemBasis | ||||||||||
| Including: | ||||||||||
| ProvisionsforBadDebtReserves | 26,730,799.74 | 100.00 | 7,744.75 | 0.03 | 26,723,054.99 | 60,013,901.59 | 100.00 | 731.61 | 0.01 | 60,013,169.98 |
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onaPortfolioBasis:
| onaPortfolioBasis: | ||||||||||
| Including: | ||||||||||
| NotesReceivable | 26,575,904.82 | 99.42 | -- | -- | 26,575,904.82 | 59,999,269.30 | 99.98 | -- | -- | 59,999,269.30 |
| AccountsReceivable | 154,894.92 | 0.58 | 7,744.75 | 5.00 | 147,150.17 | 14,632.29 | 0.02 | 731.61 | 5.00 | 13,900.68 |
| Total | 26,730,799.74 | / | 7,744.75 | / | 26,723,054.99 | 60,013,901.59 | / | 731.61 | / | 60,013,169.98 |
ProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableExplanationofProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesonaPortfolioBasis:
?Applicable□NotApplicable
Itemsforprovisionsonaportfoliobasis:Accountsreceivable
Unit:YuanCurrency:RMB
| Name | EndingBalance | ||
| ReceivablesFinancing | BadDebtReserves | ProvisionRate(%) | |
| AccountsReceivable | 154,894.92 | 7,744.75 | 5 |
| Total | 154,894.92 | 7,744.75 | 5 |
ExplanationofProvisionsforBadDebtReservesonaPortfolioBasis
□Applicable?NotApplicableProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReservesNoneExplanationofsignificantchangesinthebookbalanceofReceivablesFinancingwithchangesinlossreservesduringthecurrentperiod:
□Applicable?NotApplicable
(5)StatusofBadDebtReserves
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | BeginningBalance | AmountofChangesduringtheCurrentPeriod | EndingBalance | |||
| Provision | RecoveredorReversed | Writtenoff | OtherChanges | |||
| ProvisionsforBadDebtReservesonanIndividual-itemBasis | ||||||
| ProvisionsforBadDebtReservesonaPortfolioBasis | 731.61 | 7,013.14 | 7,744.75 | |||
| Including:NotesReceivable | ||||||
| AccountsReceivable | 731.61 | 7,013.14 | 7,744.75 | |||
| Total | 731.61 | 7,013.14 | 7,744.75 | |||
Includingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(6)StatusofReceivablesFinancingActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantReceivablesFinancing
□Applicable?NotApplicable
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Write-offExplanation:
□Applicable?NotApplicable
(7)FluctuationsinReceivablesFinancingandChangesinFairValueduringtheCurrentPeriod:
?Applicable□NotApplicable
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Items
| Items | BeginningBalance | Thechangeamountforthisperiod | EndingBalance | |||
| Cost | ChangesinFairValue | Cost | ChangesinFairValue | Cost | ChangesinFairValue | |
| NotesReceivable | 59,999,269.30 | -- | (33,423,364.48) | -- | 26,575,904.82 | -- |
| AccountsReceivable | 14,632.29 | (731.61) | 140,262.63 | (7,013.14) | 154,894.92 | (7,744.75) |
| Total | 60,013,901.59 | (731.61) | (33,283,101.85) | (7,013.14) | 26,730,799.74 | (7,744.75) |
(8)OtherExplanations:
□Applicable?NotApplicable
8.Prepayments
(1)PresentationofPrepaymentsonAging
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Aging | EndingBalance | BeginningBalance | ||
| Amount | Ratio(%) | Amount | Ratio(%) | |
| Within1year | 219,536,259.06 | 99.79 | 250,022,409.94 | 99.18 |
| 1to2years | 1,602,075.60 | 0.64 | ||
| 2to3years | 464,602.69 | 0.18 | ||
| Over3years | 464,602.69 | 0.21 | ||
| Total | 220,000,861.75 | 100.00 | 252,089,088.23 | 100.00 |
Explanationforsignificantprepaymentswithagingexceeding1yearandnotsettledtimely:
Therearenosignificantprepaymentswithagingexceedingoneyearattheendoftheperiod.
(2)OverviewofPrepaymentsRankingTopFiveinEndingBalancesAggregatedbyPrepaymentRecipients?Applicable□NotApplicable
| EntityName | EndingBalance | ProportioninTotalAmountofEndingBalancesofPrepayments(%) |
| First | 27,718,671.33 | 12.60 |
| Second | 13,460,910.63 | 6.12 |
| Third | 12,980,094.14 | 5.90 |
| Fourth | 12,496,801.92 | 5.68 |
| Fifth | 7,827,077.07 | 3.56 |
| Total | 74,483,555.09 | 33.86 |
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OtherExplanations
Theprepaymentsattheendoftheperioddonotincludeamountspaidtoshareholdersholding5%ormore(inclusive)ofthecompany’svotingsharesorotherrelatedpartyamounts.Fordetails,pleaserefertoSection14,RelatedPartiesandRelatedPartyTransactions(6).OtherExplanations
□Applicable?NotApplicable
9.OtherReceivablesPresentationofItems
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
/279
Items
| Items | EndingBalance | BeginningBalance |
| InterestReceivable | 1,575,000.00 | 1,575,000.00 |
| DividendReceivable | 1,395,866.49 | |
| OtherReceivables | 46,322,133.07 | 49,809,535.97 |
| Total | 49,292,999.56 | 51,384,535.97 |
OtherExplanations:
□Applicable?NotApplicableInterestReceivable
(1)ClassificationofInterestReceivable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| FixedDeposits | ||
| EntrustedLoans | ||
| BondInvestments | ||
| DebtInvestments | 1,575,000.00 | 1,575,000.00 |
| Total | 1,575,000.00 | 1,575,000.00 |
(2)SignificantOverdueInterest
□Applicable?NotApplicable
(3)ClassifiedDisclosurebyBadDebtProvisionMethods
□Applicable?NotApplicableProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableExplanationofProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesonaPortfolioBasis:
□Applicable?NotApplicable
(4)ProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReservesNoneExplanationofSignificantChangesintheBookBalanceofInterestReceivablewithChangesinLossReservesduringtheCurrentPeriod:
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□Applicable?NotApplicable
(5)StatusofBadDebtReserves
□Applicable?NotApplicableIncludingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(6)StatusofInterestsReceivableActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantinterestreceivable
□Applicable?NotApplicableWrite-offExplanation:
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicableDividendsReceivable
(7)DividendsReceivable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
/279
Item(orInvestee)
| Item(orInvestee) | EndingBalance | BeginningBalance |
| TongliaoDeshengBio-technCo.,Ltd. | 1,395,866.49 | |
| Total | 1,395,866.49 |
(8)SignificantDividendsReceivablewithAgingExceeding1Year
□Applicable?NotApplicable
(9)ClassifiedDisclosurebyBadDebtProvisionMethods
□Applicable?NotApplicableProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableExplanationofProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesonaPortfolioBasis:
□Applicable?NotApplicable
(10)ProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReserves:
NoneExplanationofSignificantChangesintheBookBalanceofDividendsReceivablewithChangesinLossReservesduringtheCurrentPeriod:
□Applicable?NotApplicable
(11)StatusofBadDebtReserves
□Applicable?NotApplicableIncludingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(12)StatusofDividendsReceivableActuallyWrittenoffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantdividendsreceivable
□Applicable?NotApplicableWrite-offExplanation:
□Applicable?NotApplicable
/279
OtherExplanations:
□Applicable?NotApplicableOtherReceivables
(13)DisclosurebyAging
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Aging
| Aging | BookBalanceattheEndofthePeriod | BookBalanceattheBeginningofthePeriod |
| Within1year | ||
| Including:Sub-itemsforwithin1year | ||
| Within1year | 46,467,795.88 | 48,970,416.54 |
| Within1yearSubtotal | 46,467,795.88 | 48,970,416.54 |
| 1to2years | 1,275,731.61 | 2,723,530.38 |
| 2to3years | 1,174,814.63 | 4,912,130.92 |
| Over3years | ||
| 3to4years | 4,789,260.47 | 450,262.05 |
| 4to5years | 246,853.74 | 1,521,820.00 |
| Over5years | 109,567,343.84 | 109,567,343.84 |
| Total | 163,521,800.17 | 168,145,503.73 |
(14)ClassificationofAccountsbyNature
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| AccountNature | BookBalanceattheEndofthePeriod | BookBalanceattheBeginningofthePeriod |
| ExternalUnitAccountCurrent | 27,900,225.75 | 28,178,262.18 |
| GuaranteeDeposit | 1,516,947.79 | 8,655,846.10 |
| LandandRealEstateAccountReceivable | 85,672,687.00 | 85,672,687.00 |
| ExportTaxRefundsReceivable | 37,629,851.01 | 37,750,127.66 |
| Others | 10,802,088.62 | 7,888,580.79 |
| Total | 163,521,800.17 | 168,145,503.73 |
(15)ProvisionsforBadDebtReserves
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| BadDebtReserves | StageOne | StageTwo | StageThree | Total |
| ExpectedCreditLossesfortheNext12Months | ExpectedCreditLossesfortheEntireDuration(CreditImpairmentNotYetOccurred) | ExpectedCreditLossesfortheEntireDuration(CreditImpairmentOccurred) | ||
| BalanceasofJanuary1,2024 | 5,383,788.33 | 112,952,179.43 | 118,335,967.76 | |
| BalanceasofJanuary1,2024fortheCurrentPeriod | ||||
| --TransferredtoStageTwo | ||||
| --TransferredtoStageThree | ||||
| --ReversedtoStageTwo | ||||
| --ReversedtoStageOne |
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ProvisionfortheCurrentPeriod
| ProvisionfortheCurrentPeriod | ||||
| ReversalfortheCurrentPeriod | 1,136,300.66 | 1,136,300.66 | ||
| Write-OfffortheCurrentPeriod | ||||
| Write-OfffortheCurrentPeriod | -- | -- | ||
| OtherChanges | -- | -- | -- | -- |
| BalanceasofDecember31,2024 | 4,247,487.67 | 112,952,179.43 | 117,199,667.10 |
BasisforStagingandProvisionRatiosforBadDebtReservesNoneExplanationofSignificantChangesintheBookBalanceofOtherReceivableswithChangesinLossReservesduringtheCurrentPeriod:
□Applicable?NotApplicableBasisfortheAmountofProvisionsforBadDebtReservesfortheCurrentPeriodandfortheAssessmentofSignificantIncreaseinCreditRiskforFinancialInstruments:
□Applicable?NotApplicable
(16)StatusofBadDebtReserves
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | BeginningBalance | AmountofChangesduringtheCurrentPeriod | EndingBalance | |||
| Provision | RecoveredorReversed | Writtenoff | OtherChanges | |||
| OtherAccountsReceivablebasedonProvisionsforBadDebtReservesonanIndividual-itemBasis | 112,952,179.43 | 112,952,179.43 | ||||
| OtherAccountsReceivablebasedonProvisionsforBadDebtReservesonaPortfolioBasis | 5,383,788.33 | 1,136,300.66 | 4,247,487.67 | |||
| Including:AgingAnalysisPortfolio | 5,383,788.33 | 1,136,300.66 | 4,247,487.67 | |||
| Total | 118,335,967.76 | 1,136,300.66 | 117,199,667.10 | |||
Includingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(17)StatusofOtherReceivablesActuallyWrittenoffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantotherreceivables:
□Applicable?NotApplicableExplanationofWrite-OffofOtherReceivables:
□Applicable?NotApplicable
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(18)OverviewofOtherReceivablesRankingTopFiveinEndingBalancesAggregatedbyDebtors
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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EntityName
| EntityName | EndingBalance | ProportionintheTotalAmountofEndingBalancesofOtherReceivables(%) | AccountNature | Aging | EndingBalanceofBadDebtReserves |
| BaizhouMetal,GlassandFurnitureIndustrialPark | 85,672,687.00 | 52.39 | LandandRealEstateAccountsReceivable | Over5years | 85,672,687.00 |
| TongliaoTaxationBureau,StateTaxationAdministration | 23,277,668.29 | 14.24 | ExportTaxRefunds | Within1year | 1,163,883.41 |
| KezuoZhongqiJucangGrainTradingCo.,Ltd. | 22,805,887.09 | 13.95 | ExternalUnitAccountCurrent | Over5years | 22,805,887.09 |
| LhasaEconomicandTechnologicalDevelopmentZoneTaxationBureau,StateTaxationAdministration | 14,352,182.72 | 8.78 | ExportTaxRefunds | 3–4years | 717,609.14 |
| ZhangWei | 2,495,195.17 | 1.53 | ReceivablesfromOtherUnits | Within1year | 2,495,195.17 |
| Total | 148,603,620.27 | 90.88 | / | / | 112,855,261.81 |
(19)PresentedunderOtherReceivablesduetoCentralizedFundManagement
□Applicable?NotApplicableOtherExplanations:
?Applicable□NotApplicable
Therewerenootherreceivablesinvolvinggovernmentgrantsattheendoftheperiod.Therewerenootherreceivablesderecognizedduetotransferoffinancialassetsattheendoftheperiod.Therewerenoamountsofassetsandliabilitiesformedduetothetransferofotherreceivablesandcontinuedinvolvement.Otherreceivablesattheendoftheperioddonotcontaintheaccountstoshareholderunitsholding5%ormoreoftheCompany’svotingsharesandotheraccountstorelatedparties.
10.Inventories
(1)ClassificationofInventories
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | InventoryWriteDown/Contract | BookValue | BookBalance | InventoryWritedown/Contract | BookValue | |
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Performance
CostWrite
Down
| PerformanceCostWriteDown | FulfillmentCostWriteDown | |||||
| RawMaterials | 1,869,291,071.68 | 3,552,300.96 | 1,865,738,770.72 | 1,879,948,699.84 | 2,198,601.19 | 1,877,750,098.65 |
| WorkinProgress | 364,041,057.73 | 364,041,057.73 | 374,808,516.13 | 374,808,516.13 | ||
| InventoryGoods | 299,770,551.12 | 2,895,552.03 | 296,874,999.09 | 316,474,272.81 | 4,249,605.97 | 312,224,666.84 |
| TurnoverMaterials | ||||||
| ConsumableBiologicalAssets | ||||||
| ContractPerformanceCost | ||||||
| GoodsIssued | 195,625,080.53 | 195,625,080.53 | 357,735,501.35 | 357,735,501.35 | ||
| Total | 2,728,727,761.06 | 6,447,852.99 | 2,722,279,908.07 | 2,928,966,990.13 | 6,448,207.16 | 2,922,518,782.97 |
(2).RecognitionofDataResourcesasInventory
□Applicable?NotApplicable
(3)CapitalizedAmountofBorrowingCostsIncludedinInventoryBalanceattheEndofthePeriodandItsCalculationCriteriaandBasis
□Applicable?NotApplicable
Unit:YuanCurrency:RMB
| Items | BeginningBalance | IncreasedAmountfortheCurrentPeriod | EndingBalance | |||
| Provision | Others | ReversedorWrittenoff | Others | |||
| RawMaterials | 2,198,601.19 | 1,719,410.41 | -- | 336,478.64 | 29,232.00 | 3,552,300.96 |
| WorkinProgress | ||||||
| InventoryGoods | 4,249,605.97 | 3,539,160.41 | -- | 4,893,214.35 | -- | 2,895,552.03 |
| TurnoverMaterials | ||||||
| ConsumableBiologicalAssets | ||||||
| GoodsIssued | ||||||
| Total | 6,448,207.16 | 5,258,570.82 | -- | 5,229,692.99 | 29,232.00 | 6,447,852.99 |
ReasonforReversalorWrite-offofInventoryWrite-downProvisionDuringtheCurrentPeriod
√Applicable□NotApplicable
ExplanationonInventoryWrite-downProvisionandProvisionforContractPerformanceCostImpairment:
Basisfordeterminingnetrealizablevalue:Thenetrealizablevalueisdeterminedastheestimatedsellingpriceoftherelevantfinishedgoodslesstheestimatedcoststobeincurreduntilcompletion,estimatedsellingexpenses,andrelatedtaxes.
Reasonforreversal:Thefactorsthatpreviouslyledtotheinventorywrite-downhavedisappeared,resultinginthenetrealizablevalueexceedingthecarryingamountoftheinventory.
Reasonforwrite-off:Theinventoryforwhichawrite-downprovisionwasmadeatthebeginningoftheperiodhasbeenconsumedorsoldduringthecurrentperiod.ProvisionforInventoryWrite-downonaPortfolioBasis
□Applicable√NotApplicableProvisionCriteriaforInventoryWrite-downonaPortfolioBasis
□Applicable√NotApplicable
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(4)ExplanationoftheAmortizationAmountofContractPerformanceCostsfortheCurrentPeriod
□Applicable?NotApplicable
(5).ExplanationofAmortizationofContractPerformanceCostsfortheCurrentPeriod
□Applicable√NotApplicableOtherExplanation:
□Applicable√NotApplicable
11.AssetsHeldforSale
□Applicable?NotApplicable
12.Non-CurrentAssetsDuewithinOneYear
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
/279
Items
| Items | EndingBalance | BeginningBalance |
| DebtInvestmentsDuewithinOneYear | ||
| OtherDebtInvestmentsDuewithinOneYear | ||
| Large-DenominationCertificateofDeposit | 182,257,027.81 | |
| Long-TermReceivablesDuewithinOneYear | 19,356,000.00 | |
| Total | 182,257,027.81 | 19,356,000.00 |
DebtInvestmentsDuewithinOneYear
□Applicable?NotApplicableOtherDebtInvestmentsDuewithinOneYear
□Applicable?NotApplicableOtherexplanationsfornon-currentassetsduewithinoneyear:
None
13.OtherCurrentAssets
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| CostofContractAcquisition | ||
| CostofReceivableReturns | ||
| InputTaxCreditforValue-AddedTax | 82,698,855.12 | 163,892,520.02 |
| PrepaidTaxesandFees | 4,981,517.30 | 20,862,439.54 |
| DeferredExpenses | 5,353,515.59 | 5,761,388.16 |
| Large-denominationCertificateofDeposit | 71,595,510.66 | 98,702,122.24 |
| Total | 164,629,398.67 | 289,218,469.96 |
OtherExplanations:
None
14.DebtInvestments
(1)StatusofDebtInvestments
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | ImpairmentReserves | BookValue | BookBalance | ImpairmentReserves | BookValue | |
| TongliaoHailinBiotechnology | 10,500,000.00 | -- | 10,500,000.00 | 10,500,000.00 | -- | 10,500,000.00 |
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Co.,Ltd.
| Co.,Ltd. | ||||||
| Total | 10,500,000.00 | -- | 10,500,000.00 | 10,500,000.00 | -- | 10,500,000.00 |
ChangesinDebtInvestmentImpairmentReservesfortheCurrentPeriod
□Applicable?NotApplicable
(2)SignificantDebtInvestmentsattheEndofthePeriod
□Applicable?NotApplicable
(3)ProvisionforImpairmentReserves
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforImpairmentReserves:
NoneExplanationofSignificantChangesinBookBalanceofDebtInvestmentswithChangesinLossReservesduringtheCurrentPeriod:
□Applicable?NotApplicableBasisfortheAmountofProvisionsforImpairmentReservesandtheAssessmentofSignificantIncreaseinCreditRiskofFinancialInstruments
□Applicable?NotApplicable
(4)StatusofDebtInvestmentsActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingthewrite-offofsignificantdebtinvestments
□Applicable?NotApplicableExplanationofWrite-offofDebtInvestments:
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
15.OtherDebtInvestments
(1)StatusofOtherDebtInvestments
□Applicable?NotApplicableChangesinImpairmentReservesforOtherDebtInvestmentsfortheCurrentPeriod
□Applicable?NotApplicable
(2)SignificantOtherDebtInvestmentsattheEndofthePeriod
□Applicable?NotApplicable
(3)ProvisionsforImpairmentReserves
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforImpairmentReserves:
NoneExplanationofSignificantChangesintheBookBalanceofOtherDebtInvestmentswithChangesinLossReservesduringtheCurrentPeriod:
□Applicable?NotApplicableBasisfortheAmountofProvisionsforImpairmentReservesandtheAssessmentofSignificantIncreaseinCreditRiskofFinancialInstruments
□Applicable?NotApplicable
(4)StatusofOtherDebtInvestmentsActuallyWrittenoffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingthewrite-offofsignificantotherdebtinvestments
□Applicable?NotApplicableExplanationofwrite-offofotherdebtinvestments:
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
16.Long-termReceivables
(1)StatusofLong-termReceivables
/279
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
/279
Items
| Items | EndingBalance | BeginningBalance | RangeofDiscountRates | ||||
| BookBalance | BadDebtReserves | BookValue | BookBalance | BadDebtReserves | BookValue | ||
| FinancingLeaseReceivables | 601,043.91 | 601,043.91 | 364,927.03 | 364,927.03 | |||
| Including:UnrealizedFinancingIncome | 23,036.85 | 23,036.85 | 35,072.97 | 35,072.97 | |||
| GoodsSoldonanInstallmentBasis | |||||||
| ServicesProvidedonanInstallmentBasis | |||||||
| EquityTransferPayment | 19,356,000.00 | 19,356,000.00 | |||||
| Less:Long-termReceivablesDuewithinOneyear | 19,356,000.00 | 19,356,000.00 | |||||
| Total | 601,043.91 | 601,043.91 | 364,927.03 | 364,927.03 | / | ||
(2)ClassifiedDisclosurebyBadDebtProvisionMethods
□Applicable?NotApplicableProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableExplanationofProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesonaPortfolioBasis:
□Applicable?NotApplicable
(3)ProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReservesNoneExplanationofSignificantChangesinBookBalanceofLong-termReceivableswithChangesinLossReservesduringtheCurrentPeriod:
□Applicable?NotApplicableBasisforAmountofProvisionsforBadDebtReservesandtheAssessmentofSignificantIncreaseinCreditRiskofFinancialInstruments
□Applicable?NotApplicable
(4)StatusofBadDebtReserves
□Applicable?NotApplicableIncludingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(5)StatusofLong-termReceivablesActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingWrite-offofSignificantLong-termReceivables
□Applicable?NotApplicableExplanationofWrite-offofLong-termReceivables:
□Applicable?NotApplicableOtherExplanations
?Applicable□NotApplicable
/279
Asoftheendofthereportingperiod,therewerenolong-termreceivablesthathadbeenderecognizedduetothetransferoffinancialassets.Asoftheendofthereportingperiod,therewerenoassetsorliabilitiesarisingfromtransferredlong-termreceivablesinwhichtheCompanyretainedcontinuinginvolvement.
17.Long-termEquityInvestments
(1)StatusofLong-termEquityInvestments
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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InvestedUnit
| InvestedUnit | BeginningBalance | Increase/DecreaseduringtheCurrentPeriod | EndingBalance | EndingBalancesofImpairmentReserves | |||||||
| IncreaseInvestment | DecreaseInvestment | InvestmentProfitorLossRecognizedunderEquityMethod | AdjustmentstoOtherComprehensiveIncome | OtherEquityChanges | DeclarationofCashDividendorProfitsDistribution | ProvisionsforImpairmentReserves | Others | ||||
| I.JointVentures | |||||||||||
| II.Associates | |||||||||||
| TongliaoDeshengBio-TechCo.,Ltd. | 12,219,697.23 | (2,948,890.86) | (2,395,866.49) | 6,874,939.88 | |||||||
| BeitunZefengAgriculturalDevelopmentCo.,Ltd. | 6,722,533.41 | (5,000,000.00) | (1,156,495.67) | (566,037.74) | -- | ||||||
| Subtotal | 18,942,230.64 | (5,000,000.00) | (4,105,386.53) | (2,961,904.23) | 6,874,939.88 | ||||||
| Total | 18,942,230.64 | (5,000,000.00) | (4,105,386.53) | (2,961,904.23) | 6,874,939.88 | ||||||
(2)ImpairmentTestingofLong-termEquityInvestments
□Applicable?NotApplicableOtherExplanations:
None
18.OtherEquityInstrumentInvestments
(1)StatusofOtherEquityInstrumentInvestments?Applicable□NotApplicable
Unit:YuanCurrency:RMB
MeihuaHoldingsGroupCo.,Ltd.–AnnualReport2024Items
| Items | BeginningBalance | Increase/DecreaseDuringtheCurrentPeriod | EndingBalance | DividendIncomeRecognizedfortheCurrentPeriod | GainsCumulativelyRecordedinOtherComprehensiveIncome | LossesCumulativelyRecordedinOtherComprehensiveIncome | ReasonsforDesignationasMeasuredatFairValuewithChangesRecordedinOtherComprehensiveIncome | ||||
| IncreaseInvestment | DecreaseInvestment | GainsRecordedinOtherComprehensiveIncomefortheCurrentPeriod | LossesRecordedinOtherComprehensiveIncomefortheCurrentPeriod | Others | |||||||
| BankofTibetCo.,Ltd. | 157,000,000.00 | 157,000,000.00 | 2,816,000.00 | PlannedforLong-termHolding | |||||||
| AIMVaccineCo.,Ltd. | 355,691,350.00 | 71,397,070.00 | 441,294,280.00 | 2,816,000.00 | 54,999,862.00 | PlannedforLong-termHolding | |||||
| Total | 512,691,350.00 | 71,397,070.00 | 284,294,280.00 | 54,999,862.00 | / | ||||||
(2)ExplanationofCasesInvolvingDerecognitionDuringtheCurrentPeriod
□Applicable?NotApplicableOtherExplanations:
?Applicable□NotApplicable
(1)Afterbeingdeliberatedandapprovedatthe11thmeetingofthe9thBoardofDirectors,LangfangSeasoningsignedanequitytransferagreementwithNiuNapengonDecember28,2020totransferallitssharesinLangfangDevelopmentZoneRongshangRuralCommercialBankCo.,Ltd.toNiuNapengforRMB4millionyuan,whichhasbeenreceived.Followingthecompletionofthetransferagreement,thecompanyrepeatedlyremindedLangfangRongshangRuralCommercialBankviatelephoneandemailtopromptlyhandletherelevantregistrationproceduresforshareholderchanges.AsofDecember31,2024,accordingtoasearchconductedviaTianyancha,LangfangSeasoningremainsashareholderofLangfangDevelopmentZoneRongshangRuralCommercialBankCo.,Ltd.
(2)Aftermutualconsultation,thecompanyagreedtoXinjiangHuierAgricultureGroupCo.,Ltd.’srepurchaseofthe6millionsharesofitsownstockheldbyXinjiangMeihua.Thetransferofequityhasbeencompleted.Thebusinesschangeregistrationisstillinprocess.
□Applicable?NotApplicable
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19.OtherNon-CurrentFinancialAssets
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
20.InvestmentPropertiesMeasurementModelforInvestmentPropertiesNotApplicable
21.FixedAssetsPresentationofItems
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | EndingBalance | BeginningBalance |
| FixedAssets | 11,338,208,623.56 | 11,428,700,356.22 |
| ClearanceofFixedAssets | ||
| Total | 11,338,208,623.56 | 11,428,700,356.22 |
OtherExplanations:
□Applicable?NotApplicableFixedAssets
(1)StatusofFixedAssets
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | HousingandStructures | MachineryandEquipment | TransportationTools | OfficeandOtherEquipmet | Total |
| I.OriginalBookValue | |||||
| 1.BeginningBalance | 7,573,462,549.36 | 17,032,146,393.13 | 67,447,812.82 | 253,901,244.72 | 24,926,958,000.03 |
| 2.IncreasedAmountfortheCurrentPeriod | 327,191,043.83 | 1,153,482,243.63 | 11,824,293.87 | 70,191,531.02 | 1,562,689,112.35 |
| (1)Acquisition | 892,719.85 | 19,570,377.91 | 5,992,701.01 | 13,267,177.29 | 39,722,976.06 |
| (2)TransferfromConstructioninProgress | 310,610,808.02 | 920,757,011.93 | 1,991,150.44 | 38,684,461.20 | 1,272,043,431.59 |
| (3)IncreasefromEnterpriseMerger | |||||
| Others | 15,687,515.96 | 213,154,853.79 | 3,840,442.42 | 18,239,892.53 | 250,922,704.70 |
| 3.DecreasedAmountfortheCurrentPeriod | 285,476,276.35 | 460,892,995.33 | 16,038,624.07 | 70,993,569.44 | 833,401,465.19 |
| (1)Disposalor | 58,522,096.37 | 219,556,392.56 | 16,010,624.07 | 9,387,134.60 | 303,476,247.60 |
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Scrapping
| Scrapping | |||||
| TransfertoConstructioninProgress | 65,702,019.51 | 214,722,169.32 | 136,597.96 | 280,560,786.79 | |
| OtherDecreases | 161,252,160.47 | 26,614,433.45 | 28,000.00 | 61,469,836.88 | 249,364,430.80 |
| 4.EndingBalance | 7,615,177,316.84 | 17,724,735,641.43 | 63,233,482.62 | 253,099,206.30 | 25,656,245,647.19 |
| II.AccumulatedDepreciation | |||||
| 1.BeginningBalance | 3,102,955,416.21 | 10,150,760,120.92 | 59,366,521.79 | 184,751,893.20 | 13,497,833,952.12 |
| 2.IncreasedAmountfortheCurrentPeriod | 353,186,259.61 | 1,025,935,157.41 | 4,870,315.21 | 25,230,640.26 | 1,409,222,372.49 |
| (1)Provision | 351,037,535.93 | 899,406,810.25 | 2,583,636.75 | 22,199,865.36 | 1,275,227,848.29 |
| OtherIncreases | 2,148,723.68 | 126,528,347.16 | 2,286,678.46 | 3,030,774.90 | 133,994,524.20 |
| 3.DecreasedAmountfortheCurrentPeriod | 156,579,758.21 | 364,562,484.87 | 14,955,377.17 | 55,006,819.20 | 591,104,439.45 |
| (1)DisposalorScrapping | 41,140,537.02 | 190,590,226.05 | 14,955,377.17 | 8,911,995.50 | 255,598,135.74 |
| TransfertoConstructioninProgress | 32,582,011.55 | 170,994,684.46 | 47,328.27 | 203,624,024.28 | |
| OtherDecreases | 82,857,209.64 | 2,977,574.36 | 46,047,495.43 | 131,882,279.43 | |
| 4.EndingBalance | 3,299,561,917.61 | 10,812,132,793.46 | 49,281,459.83 | 154,975,714.26 | 14,315,951,885.16 |
| III.ImpairmentReserves | |||||
| 1.BeginningBalance | 57,483.08 | 366,208.61 | 423,691.69 | ||
| 2.IncreasedAmountfortheCurrentPeriod | 1,723,356.44 | 1,723,356.44 | |||
| (1)Provision | 1,723,356.44 | 1,723,356.44 | |||
| 3.DecreasedAmountfortheCurrentPeriod | 57,483.08 | 4,426.58 | 61,909.66 | ||
| (1)DisposalorScrapping | 57,483.08 | 4,426.58 | 61,909.66 | ||
| 4.EndingBalance | 1,723,356.44 | 361,782.03 | 2,085,138.47 | ||
| IV.BookValue | |||||
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1.BookValueattheEndofthePeriod
| 1.BookValueattheEndofthePeriod | 4,313,892,042.79 | 6,912,602,847.97 | 13,952,022.79 | 97,761,710.01 | 11,338,208,623.56 |
| 2.BookValueattheBeginningofthePeriod | 4,470,507,133.15 | 6,881,328,789.13 | 8,081,291.03 | 68,783,142.91 | 11,428,700,356.22 |
(2)StatusofTemporarilyIdleFixedAssets
□Applicable?NotApplicable
(3)FixedAssetsLeasedthroughOperatingLeases
□Applicable?NotApplicable
(4)StatusofFixedAssetswithoutPropertyOwnershipCertificates
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | BookValue | ReasonsforLackofPropertyOwnershipCertificates |
| HousingandStructures | 148,696,601.68 | InProcess |
| Total | 148,696,601.68 |
5)ImpairmentTestingofFixedAssets
□Applicable?NotApplicableOtherExplanations:
?Applicable□NotApplicable
ThebookvalueoffixedassetsusedformortgageattheendoftheperiodisRMB393,081,094.85yuan.Pleasereferto(1)inSectionXVI-CommitmentsandContingenciesfordetails.ClearanceofFixedAssets
□Applicable?NotApplicable
22.ConstructioninProgressPresentationofItems?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| ConstructioninProgress | 714,122,720.14 | 154,737,172.81 |
| EngineeringMaterials | 14,401,421.40 | 7,224,540.48 |
| Total | 728,524,141.54 | 161,961,713.29 |
OtherExplanations:
□Applicable?NotApplicable
1．ConstructioninProgress
(1)StatusofConstructioninProgress
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
MeihuaHoldingsGroupCo.,Ltd.–AnnualReport2024Items
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | ImpairmentReserves | BookValue | BookBalance | ImpairmentReserves | BookValue | |
| TongliaoMeihuaWestAreaTechnologicalRenovationProject | 28,450,008.41 | 28,450,008.41 | 4,073,147.61 | 4,073,147.61 | ||
| TongliaoMeihuaEastAreaTechnologicalRenovationProject | 21,533,131.55 | 21,533,131.55 | 3,478,947.26 | 3,478,947.26 | ||
| 500,000-tonMSGProjectintheWestZoneofTongliao | 223,215,378.27 | 223,215,378.27 | ||||
| ExpansionProjectoftheHeatingStationintheWestZoneofTongliao | 88,996,489.23 | 88,996,489.23 | ||||
| TechnologicalUpgradeProjectofTongliaoMeihuaFertilizerFacilities | 25,042,391.04 | 25,042,391.04 | ||||
| TechnologicalUpgradeProjectofTongliaoJianlong | 149,400.00 | 149,400.00 | ||||
| TechnologicalUpgradeProjectofXinjiangMeihua | 2,207,646.03 | 2,207,646.03 | 77,285,449.22 | 77,285,449.22 | ||
| ProcessOptimizationProjectforXanthanGuminXinjiang | 7,588,537.29 | 7,588,537.29 | ||||
| 18,000-tonTechnologicalUpgradeProjectforL-IsoleucineinXinjiang | 145,720,675.85 | 145,720,675.85 | ||||
| ReconstructionProjectinXinjiang | 24,967,002.47 | 24,967,002.47 | ||||
| PhaseV600,000-tonAnnualL-LysineProjectinJilin | 155,468,504.85 | 155,468,504.85 | ||||
| TechnologicalUpgradeProjectofJilinMeihua | 14,817,339.85 | 14,817,339.85 | 12,265,752.98 | 12,265,752.98 | ||
| ReconstructionProjectoftheCompany | 1,158,006.34 | 1,158,006.34 | 32,442,084.70 | 32,442,084.70 | ||
| Total | 714,122,720.14 | 714,122,720.14 | 154,737,172.81 | 154,737,172.81 | ||
(2)ChangesinSignificantConstructioninProgressfortheCurrentPeriod
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
MeihuaHoldingsGroupCo.,Ltd.–AnnualReport2024
ProjectName
| ProjectName | BudgetAmount | BeginningBalance | IncreasedAmountfortheCurrentPeriod | AmountTransferredtoFixedAssetsfortheCurrentPeriod | OtherDecreasedAmountsfortheCurrentPeriod | EndingBalance | PercentageofCumulativeInvestmentinBudget(%) | EngineeringProgress | AccumulatedAmountofCapitalizedInterest | Including:AmountofCapitalizedInterestfortheCurrentPeriod | InterestCapitalizationRatefortheCurrentPeriod(%) | SourcesofFund |
| 500,000-tonMSGProjectintheWestZoneofTongliao | 1,061,347,600 | 857,963,192.30 | 634,747,814.03 | -- | 223,215,378.27 | 80.84 | 80.84 | 6,682,496.13 | 6,682,496.13 | 2.93 | Self-funded | |
| ProjectoftheHeatingStationintheWestZoneofTongliao | 427,715,200 | 194,955,661.53 | 105,959,172.30 | -- | 88,996,489.23 | 45.58 | 45.58 | -- | -- | -- | Self-funded | |
| PhaseV600,000-tonAnnualL-LysineProjectinJilin | 1,832,070,000 | 155,468,504.85 | -- | -- | 155,468,504.85 | 8.49 | 8.49 | 432,861.45 | 432,861.45 | 2.48 | Self-funded | |
| ProcessOptimizationProjectforXanthanGuminXinjiang | 167,380,700 | 158,312,967.20 | 150,724,429.91 | -- | 7,588,537.29 | 94.58 | 94.58 | -- | -- | / | Self-funded | |
| 18,000-tonTechnologicalUpgradeProjectforL-IsoleucineinXinjiang | 156,558,000 | 145,720,675.85 | -- | -- | 145,720,675.85 | 93.08 | 93.08 | -- | -- | Self-funded | ||
| Total | 3,645,071,500 | 1,512,421,001.73 | 891,431,416.24 | -- | 620,989,585.49 | 7,115,357.58 | 7,115,357.58 |
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(3)ProvisionsforImpairmentReservesforConstructioninProgressfortheCurrentPeriod
□Applicable?NotApplicable
(4)ImpairmentTestingofConstructioninProgress
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicableEngineeringMaterials
(5)StatusofEngineeringMaterials
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | ImpairmentReserves | BookValue | BookBalance | ImpairmentReserves | BookValue | |
| EngineeringMaterials | 14,401,421.40 | 14,401,421.40 | 7,224,540.48 | 7,224,540.48 | ||
| Total | 14,401,421.40 | 14,401,421.40 | 7,224,540.48 | 7,224,540.48 | ||
OtherExplanations:
None
23.ProductiveBiologicalAssets
(1)Productivebiologicalassetsmeasuredatcost
□Applicable?NotApplicable
(2)Impairmenttestingofproductivebiologicalassetsmeasuredatcost
□Applicable?NotApplicable
(3)Productivebiologicalassetsmeasuredatfairvalue
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
24.OilandGasAssets
(1)StatusofOilandGasAssets
□Applicable?NotApplicable
(2)ImpairmentTestingofOilandGasAssets
□Applicable?NotApplicableOtherExplanations:
None
25.Right-of-UseAssets
(1)StatusofRight-of-UseAssets?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | HousingandStructures | TransportationTools | Total |
| I.OriginalBookValue | |||
| 1.BeginningBalance | 8,172,091.49 | 5,134,761.06 | 13,306,852.55 |
| 2.IncreasedAmountfortheCurrentPeriod | 2,686,595.35 | 977,360.58 | 3,663,955.93 |
| Lease | 2,686,595.35 | 977,360.58 | 3,663,955.93 |
| 3.DecreasedAmountfortheCurrentPeriod | 3,590,867.26 | 3,590,867.26 | |
| ExpirationofLease | 3,590,867.26 | 3,590,867.26 | |
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4.EndingBalance
| 4.EndingBalance | 10,858,686.84 | 2,521,254.38 | 13,379,941.22 |
| II.AccumulatedDepreciation | |||
| 1.BeginningBalance | 1,799,424.99 | 1,873,783.47 | 3,673,208.46 |
| 2.IncreasedAmountfortheCurrentPeriod | 2,541,804.53 | 1,173,556.26 | 3,715,360.79 |
| (1)Provision | 2,541,804.53 | 1,173,556.26 | 3,715,360.79 |
| 3.DecreasedAmountfortheCurrentPeriod | 2,154,520.38 | 2,154,520.38 | |
| (1)Disposal | |||
| ExpirationofLease | 2,154,520.38 | 2,154,520.38 | |
| 4.EndingBalance | 4,341,229.52 | 892,819.35 | 5,234,048.87 |
| III.ImpairmentReserves | |||
| 1.BeginningBalance | |||
| 2.IncreasedAmountfortheCurrentPeriod | |||
| (1)Provision | |||
| 3.DecreasedAmountfortheCurrentPeriod | |||
| (1)Disposal | |||
| 4.EndingBalance | |||
| IV.BookValue | |||
| 1.BookValueattheEndofthePeriod | 6,517,457.32 | 1,628,435.03 | 8,145,892.35 |
| 2.BookValueattheBeginningofthePeriod | 6,372,666.50 | 3,260,977.59 | 9,633,644.09 |
(2)ImpairmentTestingofRight-of-UseAssets
□Applicable?NotApplicableOtherExplanations:
None
26.IntangibleAssets
(1)StatusofIntangibleAssets
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | LandUseRight | PatentRight | Non-patentTechnology | Software | LicenseforPatentUsage | Total |
| I.OriginalBookValue | ||||||
| BeginningBalance | 1,391,158,942.26 | 33,194,145.96 | 130,247,342.94 | 1,554,600,431.16 | ||
| IncreasedAmountfortheCurrentPeriod | 204,848,186.02 | 17,752,603.23 | 104,180,486.37 | 326,781,275.62 | ||
| Acquisition | 204,848,186.02 | 17,707,455.23 | 104,180,486.37 | 326,736,127.62 | ||
| InternalResearchandDevelopment | ||||||
| IncreasefromEnterpriseMerger | ||||||
| Others | 45,148.00 | 45,148.00 | ||||
| DecreasedAmountfortheCurrentPeriod | 718,749.64 | 718,749.64 | ||||
| Disposal | 718,749.64 | 718,749.64 | ||||
| EndingBalance | 1,596,007,128.28 | 50,227,999.55 | 234,427,829.31 | 1,880,662,957.14 | ||
| II.AccumulatedAmortization | ||||||
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BeginningBalance
| BeginningBalance | 337,821,705.73 | 23,659,303.82 | 117,176,118.35 | 478,657,127.90 | |
| IncreasedAmountfortheCurrentPeriod | 29,436,507.16 | 2,072,771.36 | 14,283,262.81 | 45,792,541.33 | |
| (1)Provision | 29,436,507.16 | 2,029,880.76 | 14,283,262.81 | 45,749,650.73 | |
| Others | 42,890.60 | 42,890.60 | |||
| DecreasedAmountfortheCurrentPeriod | 598,978.91 | 598,978.91 | |||
| Disposal | 598,978.91 | 598,978.91 | |||
| EndingBalance | 367,258,212.89 | 25,133,096.27 | 131,459,381.16 | 523,850,690.32 | |
| III.ImpairmentReserves | |||||
| BeginningBalance | |||||
| IncreasedAmountfortheCurrentPeriod | |||||
| (1)Provision | |||||
| DecreasedAmountfortheCurrentPeriod | |||||
| Disposal | |||||
| EndingBalance | |||||
| IV.BookValue | |||||
| BookValueattheEndofthePeriod | 1,228,748,915.39 | 25,094,903.28 | 102,968,448.15 | 1,356,812,266.82 | |
| BookValueattheBeginningofthePeriod | 1,053,337,236.53 | 9,534,842.14 | 13,071,224.59 | 1,075,943,303.26 | |
TheratioofintangibleassetsgeneratedfromtheinternalresearchanddevelopmentbytheCompanytothebalanceofintangibleassetsattheendofthecurrentperiodiszero.
(2)DataResourcesRecognizedasIntangibleAssets
□Applicable?NotApplicable
(3)StatusofLandUseRightswithoutPropertyOwnershipCertificates
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Item | BookValue | ReasonforPendingTitleCertificate |
| LandUseRight | 102,880.28 | Inprocess |
| Total | 102,880.28 |
(1)ImpairmentTestingofIntangibleAssets
□Applicable?NotApplicableOtherExplanations:
?Applicable□NotApplicable
ThecarryingamountofintangibleassetspledgedbytheCompanyattheendofthereportingperiodwasRMB27,154,158.71yuan.Fordetails,pleaserefertoSection16–CommitmentsandContingencies
(1).
27.Goodwill
(1)OriginalBookValueofGoodwill
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| NameoftheInvestedUnitorMattersGeneratingGoodwill | BeginningBalance | IncreasesduringtheCurrentPeriod | DecreasesduringtheCurrentPeriod | EndingBalance |
| Arisingfrom | Disposal |
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EnterpriseMerger
| EnterpriseMerger | ||||
| TongliaoJianlong | 11,788,911.79 | 11,788,911.79 | ||
| Total | 11,788,911.79 | 11,788,911.79 |
(2)GoodwillImpairmentReserves
□Applicable?NotApplicable
(3)RelevantInformationofAssetPortfolioorAssetPortfoliosWhereGoodwillBelongsto
□Applicable?NotApplicableChangesinAssetPortfolioorAssetPortfolios
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
(4)SpecificMethodsforDeterminingRecoverableAmountRecoverableamountisdeterminedasthenetamountafterdeductingdisposalcostsfromfairvalue
□Applicable?NotApplicableRecoverableamountisdeterminedbasedonthepresentvalueofexpectedfuturecashflows
□Applicable?NotApplicableReasonsfordifferencesbetweentheforegoinginformationandtheinformationusedinimpairmenttestsinpreviousyearsorexternalinformation
□Applicable?NotApplicableReasonsfordifferencesbetweentheinformationusedinimpairmenttestsinpreviousyearsandtheactualsituationinthecurrentyear
□Applicable?NotApplicable
(5)PerformanceCommitmentsandCorrespondingGoodwillImpairmentWhenthegoodwillwasformed,thereareperformancecommitmentsandthereportingperiodortheprecedingreportingperiodwaswithintheperformancecommitmentperiod.
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
28.Long-termDeferredExpenses
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | BeginningBalance | IncreasedAmountfortheCurrentPeriod | AmortizedAmountfortheCurrentPeriod | OtherDecreasedAmounts | EndingBalance |
| SiteLeaseFees | 28,863,906.03 | 1,525,371.69 | 15,019.63 | 27,323,514.71 | |
| SyndicatedArrangementFees | 3,668,333.24 | 3,668,333.24 | |||
| HousingSubsidies | 48,052,894.99 | 15,950,000.00 | 7,359,014.54 | 2,790,000.00 | 53,853,880.45 |
| ConsumptionofProductionMaterials | 20,613,912.52 | 41,267,500.81 | 23,718,331.14 | 38,163,082.19 | |
| StaffRewards | 349,333.18 | - | 199,333.20 | 149,999.98 | |
| LeaseholdImprovements | 2,528,444.97 | 1,025,316.21 | 505,689.00 | 3,048,072.18 | |
| Total | 104,076,824.93 | 58,242,817.02 | 36,976,072.81 | 2,805,019.63 | 122,538,549.51 |
29DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)UnoffsetDeferredIncomeTaxAssets
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | EndingBalance | BeginningBalance | ||
| DeductibleTemporaryDifferences | DeferredIncomeTaxAssets | DeductibleTemporaryDifferences | DeferredIncomeTaxAssets | |
| AssetImpairmentReserves | 131,809,560.13 | 19,904,849.89 | 132,085,052.28 | 19,832,554.29 |
| UnrealizedProfitsfromInternalTransactions | 23,434,992.36 | 3,515,642.53 | 27,136,259.93 | 4,066,235.55 |
| DeductibleLosses | -- | -- | 159,208,838.99 | 23,881,325.85 |
| GovernmentGrants | 322,722,660.36 | 48,408,399.05 | 323,781,716.86 | 48,567,257.53 |
| FairValueChanges | 83,836,954.75 | 14,488,666.67 | 20,033,198.67 | 5,008,299.67 |
| Compensation | 83,202,619.91 | 12,480,392.99 | 6,646,024.36 | 996,903.65 |
| DifferenceinDepreciationPeriods | 17,744,949.45 | 2,661,742.42 | 20,717,695.58 | 3,107,654.34 |
| LeaseLiabilities | 2,367,429.23 | 355,114.38 | 4,551,861.82 | 682,779.27 |
| Total | 665,119,166.19 | 101,814,807.93 | 694,160,648.49 | 106,143,010.15 |
OtherExplanations:
None
(2)UnoffsetDeferredIncomeTaxLiabilities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance | ||
| TaxableTemporaryDifferences | DeferredIncomeTaxLiabilities | TaxableTemporaryDifferences | DeferredIncomeTaxLiabilities | |
| Incrementinvaluationofassetsfromenterprisemergernotunderthesamecontrol | ||||
| ChangesinFairValueofOtherDebtInvestments | ||||
| ChangesinFairValueofOtherEquityInvestments | ||||
| FairValueChanges | 2,096,301.37 | 314,445.21 | 6,691,350.00 | 1,003,702.51 |
| DifferenceinDepreciationPeriods | 126,857,856.85 | 20,662,571.49 | 96,781,731.29 | 16,114,538.19 |
| UnearnedInterest | -- | -- | 21,626,677.80 | 3,421,508.34 |
| Right-of-UseAssets | 4,054,744.98 | 608,211.75 | 6,372,666.50 | 955,899.98 |
| Total | 133,008,903.20 | 21,585,228.45 | 131,472,425.59 | 21,495,649.02 |
(3)DeferredIncomeTaxAssetsorLiabilitiesPresentedasNetAmountsAfterOffset
□Applicable?NotApplicable
(4)DetailsofUnrecognizedDeferredIncomeTaxAssets
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| DeductibleTemporaryDifferences |
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DeductibleLosses
| DeductibleLosses | 31,196,481.29 | 36,343,282.47 |
| BadDebtReserves | 22,838,960.09 | 26,451,615.91 |
| FixedAssetImpairmentReserves | 2,085,138.47 | 423,691.69 |
| Total | 56,120,579.85 | 63,218,590.07 |
Duetotheuncertaintyofwhethersufficienttaxableincomewillbeavailableinthefuture,temporarydeductibledifferencesanddeductiblelosseshavenotbeenrecognizedasdeferredincometaxassets.
(5)Deductiblelossesofunrecognizeddeferredincometaxassetswillexpireinthefollowingyears
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Year | EndingBalance | BeginningBalance | Remarks |
| 2024 | 7,582,942.83 | ||
| 2025 | 3,116,726.22 | 3,216,597.75 | |
| 2026 | 8,553,866.71 | 8,553,866.71 | |
| 2027 | 3,629,579.19 | 12,148,954.97 | |
| 2028 | 4,697,563.09 | 4,840,920.21 | |
| 2029 | 11,198,746.08 | ||
| Total | 31,196,481.29 | 36,343,282.47 | / |
OtherExplanations:
□Applicable?NotApplicable
30.OtherNon-currentAssets
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | ImpairmentReserves | BookValue | BookBalance | ImpairmentReserves | BookValue | |
| CostofContractAcquisition | ||||||
| CostofContractPerformance | ||||||
| CostofReceivableReturns | ||||||
| ContractAssets | ||||||
| PrepaidEquipmentandEngineeringPayments | 166,908,283.83 | -- | 166,908,283.83 | 22,595,082.00 | -- | 22,595,082.00 |
| Large-denominationCertificatesofDeposit | 797,923,228.96 | -- | 797,923,228.96 | 186,527,333.35 | -- | 186,527,333.35 |
| Less:Non-currentassetsduewithinoneyear | 182,257,027.81 | -- | 182,257,027.81 | |||
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Total
| Total | 782,574,484.98 | -- | 782,574,484.98 | 209,122,415.35 | -- | 209,122,415.35 |
OtherExplanations:
None
31.AssetswithRestrictedOwnershipRightorUsageRight
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndofthePeriod | BeginningofthePeriod | ||||||
| BookBalance | BookValue | RestrictionType | RestrictedSituation | BookBalance | BookValue | RestrictionType | RestrictedSituation | |
| MonetaryFunds | 428,628,697.39 | 428,628,697.39 | Others | Referto1inSectionVII | 172,543,312.10 | 172,543,312.10 | Others | Referto1inSectionVII |
| NotesReceivable | ||||||||
| Inventories | ||||||||
| Including:DataResources | ||||||||
| FixedAssets | 835,206,080.41 | 393,081,094.85 | Mortgage | Referto2inSectionXVI | 827,303,398.98 | 423,641,966.22 | Mortgage | Referto2inSectionXVI |
| IntangibleAssets | 36,898,603.23 | 27,154,158.71 | Mortgage | Referto2inSectionXVI | ||||
| Including:DataResources | ||||||||
| Total | 1,300,733,381.03 | 848,863,950.95 | / | / | 999,846,711.08 | 596,185,278.32 | / | / |
OtherExplanations:
None
32.Short-TermBorrowings
(1)ClassificationofShort-TermBorrowings
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| PledgedBorrowings | ||
| MortgagedBorrowings | ||
| GuaranteedBorrowings | 945,000,000.00 | 1,223,000,000.00 |
| CreditBorrowings | 290,000,000.00 | 100,000,000.00 |
| DiscountedBillsNotYetMatured | 499,371,350.50 | 220,391,544.80 |
| UnmaturedInterestPayable | 461,280.56 | 477,513.89 |
| Total | 1,734,832,631.06 | 1,543,869,058.69 |
ExplanationsofCategoriesofShort-TermBorrowings:
(1)DetailsofGuaranteedBorrowings
| LendingInstitution | EndingBalance | Guarantor | GuaranteedParty | TermofBorrowing |
| BusinessDepartmentofTibetBranch,BankofChinaLimited | 100,000,000.00 | TongliaoMeihua,XinjiangMeihua | TheCompany | 2024/6/5-2025/6/5 |
| BusinessDepartmentofTibetBranch,BankofChinaLimited | 200,000,000.00 | TongliaoMeihua,XinjiangMeihua | TheCompany | 2024/2/23-2025/2/23 |
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LendingInstitution
| LendingInstitution | EndingBalance | Guarantor | GuaranteedParty | TermofBorrowing |
| BusinessDepartmentofTibetBranch,BankofChinaLimited | 150,000,000.00 | TongliaoMeihua,XinjiangMeihua | TheCompany | 2024/9/26-2025/9/25 |
| BusinessDepartmentofTibetBranch,BankofChinaLimited | 100,000,000.00 | TongliaoMeihua,XinjiangMeihua | TheCompany | 2024/11/11-2025/11/11 |
| BusinessDepartmentofTibetBranch,BankofChinaLimited | 100,000,000.00 | TongliaoMeihua,XinjiangMeihua | TheCompany | 2024/11/26-2025/11/26 |
| LiaotongBranch,ChinaConstructionBankCorporation | 80,000,000.00 | TheCompany | TongliaoMeihua | 2024/1/31-2025/1/31 |
| LiaotongBranch,ChinaConstructionBankCorporation | 40,000,000.00 | TheCompany | TongliaoMeihua | 2024/3/25-2025/3/21 |
| LiaotongBranch,ChinaConstructionBankCorporation | 60,000,000.00 | TheCompany | TongliaoMeihua | 2024/3/27-2025/3/21 |
| LiaotongBranch,ChinaConstructionBankCorporation | 20,000,000.00 | TheCompany | TongliaoMeihua | 2024/3/29-2025/3/21 |
| BaichengBranch,BankofChinaLimited | 30,000,000.00 | TheCompany | JilinMeihua | 2024/4/10-2025/4/10 |
| BaichengBranch,BankofChinaLimited | 40,000,000.00 | TheCompany | JilinMeihua | 2024/4/15-2025/4/10 |
| BaichengBranch,BankofChinaLimited | 25,000,000.00 | TheCompany | JilinMeihua | 2024/4/18-2025/4/10 |
| Total | 945,000,000.00 |
(2)DetailsofCreditBorrowings
| LendingInstitution | EndingBalance | TermofBorrowing |
| LangfangDevelopmentZoneSub-branchofChinaConstructionBankCorporation | 150,000,000.00 | 2024/9/24-2025/6/5 |
| LangfangDevelopmentZoneSub-branchofChinaConstructionBankCorporation | 70,000,000.00 | 2024/10/28-2025/5/12 |
| LangfangBranchofChinaMerchantsBankCo.,Ltd. | 70,000,000.00 | 2024/10/25-2025/7/24 |
| Total | 290,000,000.00 |
(2)StatusofOverdueandUnpaidShort-TermBorrowings
□Applicable?NotApplicableThestatusofsignificantoverdueandunpaidshort-termborrowingsisasfollows:
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
33.FinancialLiabilitiesHeldforTrading
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
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34.DerivativeFinancialLiabilities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | EndingBalance | BeginningBalance |
| DerivativeFinancialLiabilities | 297,500.00 | 250,000.00 |
| Total | 297,500.00 | 250,000.00 |
OtherExplanations:
None
35.NotesPayable
(1)PresentationofNotesPayable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Types | EndingBalance | BeginningBalance |
| CommercialAcceptanceBills | ||
| BankAcceptanceBills | 1,416,217,579.96 | 1,183,031,652.44 |
| Total | 1,416,217,579.96 | 1,183,031,652.44 |
ThetotalamountofoverdueandunpaidnotespayableattheendoftheperiodisRMB0yuan.Thereasonfornon-paymentuponmaturityis:None
36.AccountsPayable
(1)PresentationofAccountsPayable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| PaymentsforEngineeringandEquipment | 547,927,602.59 | 539,356,692.74 |
| ProvisionalEstimationofPayments | 315,606,671.86 | 301,070,630.19 |
| PaymentsPayable | 307,171,751.69 | 332,235,118.51 |
| OtherPayments | 270,827,000.58 | 252,934,754.83 |
| Total | 1,441,533,026.72 | 1,425,597,196.27 |
(2)SignificantAccountsPayablewithanAgingExceeding1YearorOverdue
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | ReasonsforBeingUnpaidorCarriedForward |
| HangzhouFortuneGasCryogenicGroupCo.,Ltd. | 4,000,000.00 | NotYetDueforSettlement |
| InnerMongoliaHuomeiYichengEnergyCo.,Ltd. | 3,999,553.50 | UnabletoContactDuetoBankruptcy |
| JiangsuYulongConstructionEngineeringCo.,Ltd. | 3,847,735.00 | NotYetDueforSettlement |
| ShenyangTurbineMachineryCo.,Ltd. | 3,612,000.00 | NotYetDueforSettlement |
| XinjiangHuijiaRealEstateCo.,Ltd. | 3,479,843.17 | NotYetDueforSettlement |
| Total | 18,939,131.67 | / |
OtherExplanations
?Applicable□NotApplicable
Attheendoftheperiod,therewerenoaccountspayabletoshareholderunitsholding5%ormore
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oftheCompany’svotingsharesandotherrelatedpartiesintheaccountspayable.
37.AdvanceReceipts
(1)PresentationofAdvanceReceipts
□Applicable?NotApplicable
(2)SignificantAdvanceReceiptswithanAgingExceeding1Year
□Applicable?NotApplicable
(3)AmountofandReasonforSignificantChangesinBookValueDuringtheReportingPeriod
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
38.ContractLiabilities
(1)StatusofContractLiabilities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | EndingBalance | BeginningBalance |
| AdvancePaymentsforGoods | 916,515,321.35 | 892,931,047.76 |
| Total | 916,515,321.35 | 892,931,047.76 |
(2)SignificantContractLiabilitieswithanAgingExceeding1Year
□Applicable?NotApplicable
(3)AmountofandReasonforSignificantChangesinBookValueDuringtheReportingPeriod
□Applicable?NotApplicableOtherExplanations:
?Applicable□NotApplicable
Attheendoftheperiod,therewerenoadvancereceiptsfromshareholderunitsholding5%ormoreoftheCompany’svotingsharesinthecontractliabilities.Pleasereferto(6)inSectionXIV-RelatedPartiesandRelatedTransactionsfordetailsofadvancereceiptsfromotherrelatedparties.
39.EmployeeCompensationPayable
(1)PresentationofEmployeeCompensationPayable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | BeginningBalance | IncreaseduringtheCurrentPeriod | DecreaseduringtheCurrentPeriod | EndingBalance |
| I.Short-TermCompensation | 322,959,640.35 | 1,747,912,437.14 | 1,760,988,013.62 | 309,884,063.87 |
| II.Post-employmentBenefits-DefinedContributionPlans | -- | 127,445,247.00 | 127,195,621.88 | 249,625.12 |
| III.TerminationBenefits | ||||
| IV.OtherBenefitsDueWithinOneYear | ||||
| Total | 322,959,640.35 | 1,875,357,684.14 | 1,888,183,635.50 | 310,133,688.99 |
(2)PresentationofShort-TermCompensation
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | BeginningBalance | IncreaseduringtheCurrentPeriod | DecreaseduringtheCurrentPeriod | EndingBalance |
| I.Salaries,Bonuses,Allowances,andSubsidies | 319,919,662.68 | 1,624,930,394.59 | 1,640,016,092.92 | 304,833,964.35 |
| II.EmployeeWelfareExpenses | -- | 5,475,068.71 | 5,475,068.71 | -- |
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III.SocialInsurancePremiums
| III.SocialInsurancePremiums | -- | 68,414,308.16 | 68,414,308.16 | -- |
| Including:MedicalInsurancePremiums | -- | 61,802,700.88 | 61,802,700.88 | -- |
| WorkInjuryInsurancePremiums | -- | 6,611,607.28 | 6,611,607.28 | -- |
| MaternityInsurancePremiums | ||||
| IV.HousingProvidentFund | -- | 13,195,968.15 | 13,195,968.15 | -- |
| V.UnionFundsandEmployeeEducationFunds | 3,039,977.67 | 22,736,697.53 | 20,726,575.68 | 5,050,099.52 |
| VI.Short-TermPaidAbsence | -- | 13,160,000.00 | 13,160,000.00 | -- |
| VII.Short-TermProfit-SharingPlans | ||||
| Total | 322,959,640.35 | 1,747,912,437.14 | 1,760,988,013.62 | 309,884,063.87 |
(3)PresentationofDefinedContributionPlans
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | BeginningBalance | IncreaseduringtheCurrentPeriod | DecreaseduringtheCurrentPeriod | EndingBalance |
| 1.BasicOld-AgeInsurance | 123,136,376.70 | 122,901,269.04 | 235,107.66 | |
| 2.UnemploymentInsurancePremiums | 4,308,870.30 | 4,294,352.84 | 14,517.46 | |
| 1.CorporatePensionContributions | ||||
| Total | 127,445,247.00 | 127,195,621.88 | 249,625.12 |
OtherExplanations:
□Applicable?NotApplicable
40.TaxesPayable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| Value-addedTax | 25,599,120.74 | 6,718,904.45 |
| ConsumptionTax | ||
| BusinessTax | ||
| CorporateIncomeTax | 223,208,443.42 | 138,281,216.82 |
| PersonalIncomeTax | 4,141,936.00 | 85,396,272.23 |
| CityMaintenanceandConstructionTax | 2,727,290.52 | 2,418,469.57 |
| EnvironmentalProtectionTax | 1,785,754.86 | 1,718,490.66 |
| EducationSurcharge | 2,091,100.43 | 1,897,988.98 |
| WaterResourceTax | 13,923,721.05 | 12,528,820.00 |
| StampDuty | 6,261,699.28 | 7,022,025.42 |
| Others | 473,619.30 | 490,338.42 |
| Total | 280,212,685.60 | 256,472,526.55 |
OtherExplanations:
None
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41.OtherPayables
(1)PresentationofItems?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | EndingBalance | BeginningBalance |
| InterestPayable | ||
| DividendPayable | 409,445.58 | 405,000.00 |
| OtherPayables | 447,705,692.40 | 249,448,910.40 |
| Total | 448,115,137.98 | 249,853,910.40 |
OtherExplanations:
□Applicable?NotApplicable
(1)InterestPayableClassifiedPresentation
□Applicable?NotApplicableSignificantOverdueInterestPayable:
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
(2)DividendsPayableClassifiedPresentation
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| CommonStockDividends | 409,445.58 | 405,000.00 |
| PreferredShares/PerpetualBondDividendsClassifiedasEquityInstruments | ||
| Total | 409,445.58 | 405,000.00 |
Otherexplanations:Forsignificantdividendspayableoverdueformorethan1year,thereasonsfornon-paymentshouldbedisclosed:
TheunpaiddividendspertaintotheEmployeeStockOwnershipPlan.
(3)OtherPayablesPresentationofOtherPayablesbyNatureofPayments
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| AccruedExpenses | 115,315,362.37 | 181,138,357.90 |
| GuaranteeDeposits | 84,940,254.59 | 57,708,196.32 |
| ExpensesforLitigationSettlement | 233,000,000.00 | |
| Others | 14,450,075.44 | 10,602,356.18 |
| Total | 447,705,692.40 | 249,448,910.40 |
Significantotherpayableswithanagingexceeding1yearoroverdue
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | ReasonsforBeingUnpaidorCarriedForward |
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KhorchinDistrictTaxBureau,TongliaoCity,StateTaxationAdministration
| KhorchinDistrictTaxBureau,TongliaoCity,StateTaxationAdministration | 10,685,008.72 | NotYetDueforPayment |
| DisabledPersons’Federationofthe6thDivision,XinjiangProductionandConstructionCorps | 6,952,578.01 | NotYetDueforPayment |
| XinjiangHengyuanWaterCo.,Ltd. | 4,114,643.33 | NotYetDueforPayment |
| Total | 21,752,230.06 | / |
OtherExplanations:
?Applicable□NotApplicable
Attheendoftheperiod,therewerenoaccountspayabletoshareholderunitsholding5%ormoreoftheCompany’svotingsharesorotherrelatedpartiesintheotherpayables.
42.LiabilitiesHeldforSale
□Applicable?NotApplicable
43.Non-CurrentLiabilitiesDuewithin1Year
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| Long-termBorrowingsDueWithin1Year | 746,288,000.00 | 531,634,500.00 |
| BondsPayableDueWithin1Year | ||
| Long-TermPayablesDueWithin1Year | 52,520,701.81 | |
| LeaseLiabilitiesDueWithin1Year | 3,538,091.97 | 3,450,772.76 |
| Total | 802,346,793.78 | 535,085,272.76 |
OtherExplanations:
None
44.OtherCurrentLiabilitiesStatusofOtherCurrentLiabilities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| Short-TermBondsPayable | ||
| ReturnRefundsPayable | ||
| Long-ternLoanInterestRepayableWithinOneYear | 1,384,991.74 | 2,210,728.07 |
| SalesTaxtobeCarriedForward | 83,774,472.00 | 71,806,893.03 |
| NotesEndorsedButNotYetDerecognized | 3,625,660.00 | 44,671,107.65 |
| Total | 88,785,123.74 | 118,688,728.75 |
Increase/DecreaseinShort-TermBondsPayable:
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
45.Long-TermBorrowings
(1)ClassificationofLong-TermBorrowings
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| PledgedBorrowings |
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MortgagedBorrowings
| MortgagedBorrowings | 300,000,000.00 | 300,000,000.00 |
| GuaranteedBorrowings | 1,303,592,044.83 | 2,181,597,521.77 |
| CreditBorrowings | 490,790,000.00 | 50,000,000.00 |
| Less:Long-TermBorrowingsDueWithinOneYear | 746,288,000.00 | 531,634,500.00 |
| Total | 1,348,094,044.83 | 1,999,963,021.77 |
ExplanationofClassificationofLong-TermBorrowings:
DetailsofCreditBorrowings
| LendingInstitution | EndingBalance | TermofBorrowing |
| SongyuanBranch,BankofCommunicationsCo.,Ltd. | 29,500,000.00 | 2024/4/23-2027/4/23 |
| SongyuanBranch,BankofCommunicationsCo.,Ltd. | 34,500,000.00 | 2024/6/20-2027/6/17 |
| SongyuanBranch,BankofCommunicationsCo.,Ltd. | 47,490,000.00 | 2024/8/20-2027/8/20 |
| ShengfangSub-branchofBazhou,AgriculturalBankofChinaLimited | 169,500,000.00 | 2024/11/14-2027/11/12 |
| LangfangBranch,BankofCommunicationsCo.,Ltd. | 39,900,000.00 | 2024/9/27-2027/9/24 |
| LangfangBranch,BankofCommunicationsCo.,Ltd. | 59,900,000.00 | 2024/10/22-2027/10/21 |
| KhorchinDistrictSub-branchofTongliao,AgriculturalDevelopmentBankofChina | 50,000,000.00 | 2024/12/30-2026/12/27 |
| BusinessDepartmentofBaichengBranch,ChinaConstructionBankCorporation | 60,000,000.00 | 2024/12/28-2027/12/28 |
| Less:Long-TermBorrowingsDueWithinOneYear | 28,420,000.00 | |
| Total | 462,370,000.00 |
(2)DetailsofMortgagedBorrowings
| LendingInstitution | EndingBalance | Collateral | TermofBorrowing |
| HebeiBranch,Export-ImportBankofChina | 300,000,000.00 | XinjiangMeihuaLandPropertyascollateral | 2022/8/12-2025/7/26 |
| Less:Long-TermBorrowingsDueWithinOneYear | 300,000,000.00 | ||
| Total | 300,000,000.00 |
(3)DetailsofGuaranteedBorrowings
| LendingInstitution | EndingBalance | Guarantor | GuaranteedParty | TermofBorrowing |
| BusinessDepartmentofTibetBranch,BankofChinaLimited | 177,000,000.00 | TongliaoMeihua,XinjiangMeihua | TheCompany | 2023/3/31-2026/3/31 |
| BusinessDepartmentofTibetBranch,BankofChinaLimited | 37,000,000.00 | TongliaoMeihua,XinjiangMeihua | TheCompany | 2023/4/23-2026/3/31 |
| BusinessDepartmentofTibetBranch,BankofChinaLimited | 46,860,000.00 | TongliaoMeihua,XinjiangMeihua | TheCompany | 2022/6/13-2025/6/13 |
| BusinessDepartmentofTibetBranch,BankofChinaLimited | 29,000,000.00 | TongliaoMeihua,XinjiangMeihua | TheCompany | 2024/6/11-2027/6/11 |
| LangfangBranch,HuaXiaBankCo.Ltd. | 112,000,000.00 | TongliaoMeihua | TheCompany | 2022/11/17-2025/11/14 |
| SongyuanBranch,BankofCommunications | 29,000,000.00 | TheCompany | JilinMeihua | 2023/9/22- |
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LendingInstitution
| LendingInstitution | EndingBalance | Guarantor | GuaranteedParty | TermofBorrowing |
| Co.,Ltd. | 2025/9/22 | |||
| BaichengBranch,ChinaConstructionBankCorporation | 103,000,000.00 | TheCompany | JilinMeihua | 2022/6/28-2025/6/27 |
| TongliaoBranch,ChinaConstructionBankCorporation | 100,000,000.00 | TheCompany | TongliaoMeihua | 2023/5/22-2038/5/8 |
| TongliaoBranch,ChinaConstructionBankCorporation | 19,300,000.00 | TheCompany | TongliaoMeihua | 2024/6/6-2038/5/8 |
| TongliaoBranch,ChinaConstructionBankCorporation | 10,000,000.00 | TheCompany | TongliaoMeihua | 2024/6/13-2038/5/8 |
| TongliaoBranch,ChinaConstructionBankCorporation | 6,000,000.00 | TheCompany | TongliaoMeihua | 2024/6/19-2038/5/8 |
| TongliaoBranch,ChinaConstructionBankCorporation | 15,000,000.00 | TheCompany | TongliaoMeihua | 2024/6/26-2038/5/8 |
| TongliaoJianguoRoadSub-branch,ChinaConstructionBankCorporation | 50,000,000.00 | TheCompany | TongliaoMeihua | 2024/10/21-2027/10/21 |
| BusinessDepartmentofTongliaoBranch,ChinaConstructionBankCorporation | 60,000,000.00 | TheCompany | TongliaoMeihua | 2024/10/21-2027/10/21 |
| BusinessDepartmentofTongliaoBranch,ChinaConstructionBankCorporation | 40,000,000.00 | TheCompany | TongliaoMeihua | 2024/10/24-2027/10/21 |
| TongliaoJianguoRoadSub-branch,ChinaConstructionBankCorporation | 50,000,000.00 | TheCompany | TongliaoMeihua | 2024/10/24-2027/10/21 |
| BusinessDepartmentofTongliaoBranch,ChinaConstructionBankCorporation | 40,000,000.00 | TheCompany | TongliaoMeihua | 2024/11/14-2027/10/21 |
| BusinessDepartmentofTongliaoBranch,ChinaConstructionBankCorporation | 40,000,000.00 | TheCompany | TongliaoMeihua | 2024/11/18-2027/10/21 |
| BusinessDepartmentofTongliaoBranch,ChinaConstructionBankCorporation | 20,000,000.00 | TheCompany | TongliaoMeihua | 2024/11/20-2027/10/21 |
| HuihaiSub-branch,AgriculturalBankofChinaLimited | 14,819,832.28 | XinjiangMeihua | TongliaoMeihua | 2024/12/5-2039/11/27 |
| HuihaiSub-branch,AgriculturalBankofChinaLimited | 4,538,021.20 | XinjiangMeihua | TongliaoMeihua | 2024/12/12-2039/11/27 |
| HuihaiSub-branch,AgriculturalBankofChinaLimited | 3,978,347.92 | XinjiangMeihua | TongliaoMeihua | 2024/12/19-2039/11/27 |
| HuihaiSub-branch,AgriculturalBankofChinaLimited | 2,095,843.43 | XinjiangMeihua | TongliaoMeihua | 2024/12/25-2039/11/27 |
| HuihaiSub-branch,AgriculturalBankofChinaLimited | 46,000,000.00 | XinjiangMeihua | TongliaoMeihua | 2024/2/6-2027/2/4 |
| HuihaiSub-branch,AgriculturalBankofChinaLimited | 100,000,000.00 | XinjiangMeihua | TongliaoMeihua | 2023/8/28-2038/6/20 |
| WujiaquSub-branch,ChinaConstructionBankCorporation | 99,000,000.00 | TheCompany | XinjiangMeihua | 2024/7/25-2027/7/25 |
| WujiaquSub-branch,ChinaConstructionBankCorporation | 49,000,000.00 | TheCompany | XinjiangMeihua | 2024/8/21-2025/9/21 |
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LendingInstitution
| LendingInstitution | EndingBalance | Guarantor | GuaranteedParty | TermofBorrowing |
| Less:Long-termBorrowingsDueWithinOneYear | 417,868,000.00 | |||
| Total | 885,724,044.83 |
OtherExplanations:
□Applicable?NotApplicable
46.BondsPayable
(1)BondsPayable
□Applicable?NotApplicable
2)SpecificStatusofBondsPayable:(Excludingotherfinancialinstrumentssuchaspreferredsharesandperpetualbondsclassifiedasfinancialliabilities)
□Applicable?NotApplicable
(3)ExplanationofConvertibleCorporateBonds
□Applicable?NotApplicableAccountingTreatmentofandJudgementBasisforRightstoConvertShares
□Applicable?NotApplicable
(4)ExplanationofOtherFinancialInstrumentsClassifiedasFinancialLiabilitiesOverviewofotherfinancialinstrumentssuchaspreferredsharesandperpetualbondsoutstandingattheendoftheperiod
□Applicable?NotApplicableTableofChangesinFinancialInstrumentssuchasPreferredSharesandPerpetualBondsOutstandingattheEndofthePeriod
□Applicable?NotApplicableExplanationoftheBasisforClassifyingOtherFinancialInstrumentsasFinancialLiabilities:
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
47.LeaseLiabilities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| Within1year | 3,782,304.67 | 3,787,177.91 |
| 1-2years | 1,068,434.90 | 2,713,869.77 |
| 2-3years | 844,354.16 | |
| 3-4years | 172,111.80 | |
| 4-5years | 28,862.29 | |
| Less:UnrecognizedFinancingCosts | 372,835.01 | 459,969.00 |
| Less:LeaseLiabilitiesDueWithinOneYear | 3,538,091.97 | 3,450,772.76 |
| Total | 1,985,140.84 | 2,590,305.92 |
OtherExplanations:
None
48.Long-TermPayablesPresentationofItems?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
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Long-termPayables
| Long-termPayables | 10,500,000.00 | 10,500,000.00 |
| SpecialPayables | ||
| PayablesforPatentRoyalties | 52,520,701.81 | |
| Less:Long-termPayablesDueWithinOneYear | 52,520,701.81 | |
| Total | 10,500,000.00 | 10,500,000.00 |
OtherExplanations:
□Applicable?NotApplicableLong-termPayables
(1)Long-termPayablesPresentedbyNatureofPayments
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| GuaranteeDeposits | 10,500,000.00 | 10,500,000.00 |
| Less:Long-termPayablesDueWithinOneYear | -- | -- |
| Total | 10,500,000.00 | 10,500,000.00 |
OtherExplanations:
NoneSpecialPayables
(2)SpecialPayablesPresentedbyNatureofPayments
□Applicable?NotApplicable
49.Long-termEmployeeCompensationPayable
□Applicable?NotApplicable
50.EstimatedLiabilities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance | ReasonsforFormation |
| GuaranteesProvidedtoExternalParties | |||
| PendingLitigation | 32,438,161.92 | 45,888,616.17 | Referto2inSectionXVIfordetails |
| ProductQualityAssurance | |||
| RestructuringObligations | |||
| LossContractstobeExecuted | |||
| ReturnRefundsPayable | |||
| Others | |||
| Total | 32,438,161.92 | 45,888,616.17 | / |
OtherExplanations:Includingrelatedsignificantassumptionsforsignificantestimatedliabilities.EstimationExplanation:None51DeferredRevenue
StatusofDeferredRevenue
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | BeginningBalance | IncreaseduringtheCurrentPeriod | DecreaseduringtheCurrentPeriod | EndingBalance | ReasonsforFormation |
| Asset-relatedGovernmentGrants | 384,988,414.73 | 40,110,000.00 | 44,077,769.22 | 381,020,645.51 | Referto2inSectionX |
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fordetails
| fordetails | |||||
| Total | 384,988,414.73 | 40,110,000.00 | 44,077,769.22 | 381,020,645.51 | / |
OtherExplanations:
?Applicable□NotApplicable
Referto2inSectionXIfordetailsofgovernmentgrantsfortheCompany.52OtherNon-currentLiabilities
□Applicable?NotApplicable
53.ShareCapital
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| BeginningBalance | Increase/Decrease(+,-)intheChangesDuringtheCurrentPeriod | EndingBalance | |||||
| NewSharesIssued | StockDividend | CapitalReservesConversionintoShares | Others | Subtotal | |||
| TotalQuantityofShares | 2,943,426,102.00 | (90,637,352.00) | (90,637,352.00) | 2,852,788,750.00 | |||
OtherExplanations:
RefertoNote1-BasicInformationoftheCompanyfordetailsofchangesinsharecapital.
54.OtherEquityInstruments
(1)Overviewofotherfinancialinstrumentssuchaspreferredsharesandperpetualbondsoutstandingattheendoftheperiod
□Applicable?NotApplicable
(2)TableofChangesinFinancialInstrumentssuchasPreferredSharesandPerpetualBondsOutstandingattheEndofthePeriod
□Applicable?NotApplicableExplanationofincrease/decreaseinotherequityinstrumentsduringthecurrentperiod,reasonsforsuchchangesandbasisforrelevantaccountingtreatments:
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
55.CapitalReserves
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | BeginningBalance | IncreaseduringtheCurrentPeriod | DecreaseduringtheCurrentPeriod | EndingBalance |
| CapitalPremiums(SharePremiums) | 1,032,707,760.40 | -- | 769,552,893.35 | 263,154,867.05 |
| OtherCapitalReserves | ||||
| Total | 1,032,707,760.40 | -- | 769,552,893.35 | 263,154,867.05 |
OtherExplanations:Includingexplanationofincrease/decreaseinthecurrentperiodandreasonsforsuchchanges:
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Thedecreaseincapitalsurplusduringthereportingperiodwasduetothecancellationof90,637,352sharesheldinthecompany’srepurchaseaccount,inaccordancewiththeresolutionspassedatthe13thmeetingofthe10thBoardofDirectorsonSeptember23,2024,andthe2ndExtraordinaryGeneralMeetingofShareholdersin2024heldonOctober11,2024.ThiscancellationresultedinareductionofRMB769,552,893.35yuanincapitalsurplus.Pursuanttotheresolutionspassedattheaforementionedboardandshareholdermeetingsregardingtheproposaltochangethecompany’sregisteredcapital,thepreviouslyrepurchased90,637,352shareswereusedforcancellationandtoreducetheregisteredcapital.Uponcompletionofthecancellation,thecompany’stotalsharecapitaldecreasedfrom2,943,426,102sharesto2,852,788,750shares.
56.TreasuryShares
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | BeginningBalance | IncreaseduringtheCurrentPeriod | DecreaseduringtheCurrentPeriod | EndingBalance |
| ShareRepurchaseforCapitalDecrease | 576,775,719.27 | 571,185,981.88 | 860,190,245.35 | 287,771,455.80 |
| Total | 576,775,719.27 | 571,185,981.88 | 860,190,245.35 | 287,771,455.80 |
OtherExplanations:Includingexplanationofincrease/decreaseinthecurrentperiodandreasonsforsuchchanges:
1.Increaseduringthecurrentperiod
(1)OnApril8andApril28,2023,theCompanyconvenedthe3rdmeetingofthe10thBoardofDirectorsandthe2ndExtraordinaryGeneralMeetingofShareholdersin2023,respectively,atwhichtheproposalontherepurchaseoftheCompany’ssharesthroughcentralizedbiddingwasreviewedandapproved.ThetotalamountofthisrepurchasewasnotlessthanRMB800millionandnotmorethanRMB1billion.Therepurchasedshareswereintendedtobecanceledtoreducetheregisteredcapital.AsofApril28,2024,therepurchaseperiodhadended,andtheCompanycompletedtherepurchaseof90,637,352shares,withatotalpaymentofRMB860.03million,includingRMB283.41millionpaidin2024.
(2)OnSeptember23andOctober11,2024,theCompanyconvenedthe13thmeetingofthe10thBoardofDirectorsandthe2ndExtraordinaryGeneralMeetingofShareholdersin2024,respectively,atwhichtheproposalontherepurchaseoftheCompany’ssharesthroughcentralizedbiddingwasreviewedandapproved.ThetotalamountofthisrepurchasewasnotlessthanRMB300millionandnotmorethanRMB500million.Therepurchasedshareswereintendedtobecanceledtoreducetheregisteredcapital.AsofDecember31,2024,theCompanyhadrepurchased28.81millionshares,accountingfor1.01%ofthetotalsharecapital(2,852,788,750shares),withatotalpaymentofRMB287.77million.
2.Decreaseduringthecurrentperiod
OnSeptember23andOctober11,2024,theCompanyconvenedthe13thmeetingofthe10thBoardofDirectorsandthe2ndExtraordinaryGeneralMeetingofShareholdersin2024,respectively,atwhichtheproposalonthechangeoftheCompany’sregisteredcapitalwasreviewedandapproved.Pursuanttotherelevantresolutions,allrepurchasedshareswerecanceled,resultinginareductioninthe
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Company’sregisteredcapital.Atotalof90,637,352repurchasedshareswerecanceled.AsofDecember31,2024,theCompanyhadcompletedtherelatedindustrialandcommercialregistrationproceduresandobtainedanewbusinesslicenseissuedbytheMarketSupervisionAdministrationoftheTibetAutonomousRegion.ThetreasuryshareswerereducedbyRMB860,190,245.35,withacorrespondingdeductionofRMB90,637,352.00fromsharecapitalandRMB769,552,893.35fromcapitalreserve.
57.OtherComprehensiveIncome?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | BeginningBalance | AmountsIncurredduringtheCurrentPeriod | EndingBalance | |||||
| AmountsIncurredduringtheCurrentPeriodBeforeIncomeTax | Less:AmountRecordedinOtherComprehensiveIncomeinPreviousPeriodsandTransferredtotheProfitorLossfortheCurrentPeriod | Less:AmountRecordedinOtherComprehensiveIncomeinPreviousPeriodsandTransferredtoRetainedEarningsfortheCurrentPeriod | Less:IncomeTaxExpenses | AttributabletotheParentCompanyAfterTax | AttributabletotheMinorityShareholdersAfterTax | |||
| I.OtherComprehensiveIncomeThatCannotBeReclassifiedtoProfitorLoss | 5,687,647.50 | (71,397,070.00) | -- | -- | (10,709,560.50) | (60,687,509.50) | (54,999,862.00) | |
| Including:AmountofChangesinRemeasuredDefinedBenefitPlans | ||||||||
| OtherComprehensiveIncomeThatCannotBeReclassifiedtoProfitorLossUnderEquityMethod | ||||||||
| ChangesinFairValueofOtherEquityInstrumentInvestments | 5,687,647.50 | (71,397,070.00) | -- | -- | (10,709,560.50) | (60,687,509.50) | (54,999,862.00) | |
| ChangesinFairValueofEnterprises’OwnCreditRisk | ||||||||
| II.OtherComprehensiveIncometoBeReclassifiedtoProfitorLoss | -- | (5,099.46) | -- | -- | -- | (5,099.46) | (5,099.46) | |
| Including:OtherComprehensiveIncomeThatCanBeTransferredtoProfitorLossUnderEquityMethod | ||||||||
| ChangesinFairValueofOtherDebtInvestments | ||||||||
| AmountofFinancialAssetsReclassifiedandRecordedinOtherComprehensiveIncome | ||||||||
| CreditImpairmentReservesforOtherDebtInvestments | ||||||||
| CashFlowHedgingReserves | ||||||||
| ConvertedDifferencesinForeignCurrencyFinancialStatements | -- | (5,099.46) | -- | -- | -- | (5,099.46) | (5,099.46) | |
| TotalOtherComprehensiveIncome | 5,687,647.50 | (71,402,169.46) | -- | -- | (10,709,560.50) | (60,692,608.96) | (55,004,961.46) | |
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Otherexplanations,includingtheadjustmentstothetransferofeffectiveportionofcashflowhedgeprofitorlosstoinitiallyrecognizedamountofhedgeditems:None
58.SpecialReserves
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | BeginningBalance | IncreaseduringtheCurrentPeriod | DecreaseduringtheCurrentPeriod | EndingBalance |
| WorkSafetyExpenses | 3,952,446.88 | 74,358,000.95 | 73,566,832.16 | 4,743,615.67 |
| Total | 3,952,446.88 | 74,358,000.95 | 73,566,832.16 | 4,743,615.67 |
Otherexplanations,includingexplanationofincrease/decreaseforthecurrentperiodandreasonsforsuchchanges:None
59.SurplusReserves
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | BeginningBalance | IncreaseduringtheCurrentPeriod | DecreaseduringtheCurrentPeriod | EndingBalance |
| StatutorySurplusReserves | 1,326,294,444.30 | 100,099,930.70 | -- | 1,426,394,375.00 |
| DiscretionarySurplusReserves | ||||
| ReserveFunds | ||||
| EnterpriseExpandFunds | ||||
| Others | ||||
| Total | 1,326,294,444.30 | 100,099,930.70 | -- | 1,426,394,375.00 |
Explanationsofsurplusreserves,includingincludingexplanationofincrease/decreaseforthecurrentperiodandreasonsforsuchchanges:
Theincreaseinthestatutorysurplusreserveforthecurrentperiodwasmadeat10%oftheparentcompany’snetprofit,inaccordancewithapplicablelaws.InaccordancewiththeCompanyLaw,nofurtherappropriationisrequiredoncethestatutorysurplusreservehasreached50%ormoreofthecompany’sregisteredcapital.60UndistributedProfits?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | FortheCurrentPeriod | ForthePreviousPeriod |
| UndistributedProfitsattheEndofthePreviousPeriodBeforeAdjustment | 9,427,722,131.86 | 7,605,640,318.80 |
| TotalAmountofUndistributedProfitsattheBeginningoftheAdjustment(Increase+,decrease－) | ||
| UndistributedProfitsattheBeginningofthePost-adjustment | 9,427,722,131.86 | 7,605,640,318.80 |
| Plus:NetProfitAttributabletotheOwnersoftheParentCompanyfortheCurrentPeriod | 2,740,427,215.56 | 3,180,949,695.48 |
| Minus:WithdrawalofStatutorySurplusReserves | 100,099,930.70 | 183,789,891.03 |
| WithdrawalofDiscretionarySurplusReserves | ||
| WithdrawalofGeneralRiskReserves | ||
| OrdinaryShareDividendsPayable | 1,697,409,306.25 | 1,177,370,440.80 |
| OrdinaryShareDividendsTransferredtoShareCapital |
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RetainedEarningsfromtheCarry-forwardofOtherComprehensiveIncome
| RetainedEarningsfromtheCarry-forwardofOtherComprehensiveIncome | 2,292,449.41 | |
| UndistributedProfitsattheEndofthePeriod | 10,370,640,110.47 | 9,427,722,131.86 |
DetailsofUndistributedProfitsattheBeginningoftheAdjustment:
1.DuetoretrospectiveadjustmentsundertheAccountingStandardsforBusinessEnterprisesandrelatednewregulations,theamountofundistributedprofitsatthebeginningoftheimpactperiodisRMB0yuan.
2.Duetochangesintheaccountingstandards,theamountofundistributedprofitsatthebeginningoftheimpactperiodisRMB0yuan.
3.Duetocorrectionofsignificantaccountingerrors,theamountofundistributedprofitsatthebeginningoftheimpactperiodisRMB0yuan.
4.Duetochangesintheconsolidationscopecausedbythesamecontrol,theamountofundistributedprofitsatthebeginningoftheimpactperiodisRMB0yuan.
5.Duetootheradjustments,thetotalamountofundistributedprofitsatthebeginningoftheimpactperiodisRMB0yuan.
61.OperatingRevenuesandOperatingCosts
(1)StatusofOperatingRevenuesandOperatingCosts?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | ||
| Revenues | Costs | Revenues | Costs | |
| MainBusiness | 24,877,721,922.05 | 19,908,725,831.86 | 27,438,511,615.65 | 22,032,213,101.88 |
| OtherBusiness | 191,566,372.57 | 127,972,982.88 | 322,100,643.42 | 264,908,923.37 |
| Total | 25,069,288,294.62 | 20,036,698,814.74 | 27,760,612,259.07 | 22,297,122,025.25 |
(1)DecompositionInformationofOperatingRevenuesandOperatingCosts
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
(2)ExplanationofPerformanceObligations
□Applicable?NotApplicable
(3)ExplanationofAllocationtoRemainingPerformanceObligations
□Applicable?NotApplicable
(4)SignificantChangesinContractsorSignificantAdjustmentstoTransactionPrices
□Applicable?NotApplicableOtherExplanations:
1.MainBusiness(byproduct)
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | ||
| Revenues | Costs | Revenues | Costs | |
| FoodFlavorandTexture | 7,945,120,706.10 | 6,399,514,452.76 | 9,832,306,593.11 | 7,578,210,297.47 |
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Items
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | ||
| OptimizationProducts | ||||
| AnimalNutritionAminoAcids | 14,623,714,419.16 | 11,749,902,019.51 | 14,539,372,320.25 | 12,763,217,281.69 |
| HumanMedicalAminoAcids | 476,308,595.90 | 353,986,358.20 | 562,658,107.07 | 409,339,493.72 |
| Others | 1,832,578,200.89 | 1,405,323,001.39 | 2,504,174,595.22 | 1,281,446,029.00 |
| Total | 24,877,721,922.05 | 19,908,725,831.86 | 27,438,511,615.65 | 22,032,213,101.88 |
2.MainBusiness(byregion)
| RegionName | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | ||
| OperatingRevenues | OperatingCosts | OperatingRevenues | OperatingCosts | |
| DomesticSales | 16,395,093,665.85 | 13,748,410,787.61 | 18,966,892,718.66 | 15,754,837,487.69 |
| ExportSales | 8,482,628,256.20 | 6,160,315,044.25 | 8,471,618,896.99 | 6,277,375,614.19 |
| Total | 24,877,721,922.05 | 19,908,725,831.86 | 27,438,511,615.65 | 22,032,213,101.88 |
3.IncomefromtheCompany’sTopFiveCustomers
| CompanyName | Amount | ContributiontoTotalOperatingRevenues(%) |
| First | 660,165,103.89 | 2.63 |
| Second | 577,405,436.39 | 2.30 |
| Third | 571,680,621.71 | 2.28 |
| Fourth | 564,373,811.01 | 2.25 |
| Fifth | 529,047,276.10 | 2.11 |
| Total | 2,902,672,249.10 | 11.57 |
62.TaxesandSurcharges
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| ConsumptionTax | ||
| BusinessTax | ||
| UrbanMaintenanceandConstructionTax | 31,477,136.54 | 42,460,054.73 |
| EducationSurcharge | 25,682,634.62 | 32,562,320.81 |
| ResourceTax | 53,821,708.55 | 44,956,471.41 |
| PropertyTax | 51,354,671.36 | 49,652,143.48 |
| LandUseTax | 35,595,194.65 | 34,578,742.33 |
| VehicleandVesselUsageTax | 72,259.77 | 45,378.29 |
| StampDuty | 24,263,975.48 | 26,227,479.11 |
| EnvironmentalProtectionTax | 7,500,221.62 | 6,556,377.55 |
| Others | 5,694,997.25 | 5,554,768.64 |
| Total | 235,462,799.84 | 242,593,736.35 |
OtherExplanations:
None
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63SalesExpenses
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| TransportationExpenses | 170,579,059.79 | 221,950,304.39 |
| CompanyExpenses | 41,609,036.78 | 53,079,202.42 |
| PromotionExpenses | 30,030,007.98 | 24,025,191.89 |
| EmployeeExpenses | 89,596,281.53 | 65,874,971.73 |
| DepreciationandAmortization | 13,834,849.03 | 14,392,292.89 |
| WarehousingExpenses | 41,217,274.36 | 33,974,810.27 |
| EquityIncentiveExpenses | -- | 216,148.37 |
| Total | 386,866,509.47 | 413,512,921.96 |
OtherExplanations:
None
64.AdministrativeExpenses
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| CompanyExpenses | 201,618,166.80 | 211,813,309.05 |
| EmployeeExpenses | 650,833,422.51 | 585,717,181.90 |
| DepreciationandAmortization | 85,480,610.88 | 123,647,918.48 |
| EquityIncentiveExpenses | 3,419,871.44 | |
| Total | 937,932,200.19 | 924,598,280.87 |
OtherExplanations:
None
65.ResearchandDevelopmentExpenses
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| EmployeeExpenses | 54,114,060.23 | 43,670,604.00 |
| MaterialConsumption | 266,560,146.06 | 219,425,458.83 |
| DepreciationExpenses | 21,102,386.05 | 15,169,996.55 |
| OtherExpenses | 41,126,672.71 | 35,885,166.14 |
| EquityIncentiveExpenses | 71,457.37 | |
| Total | 382,903,265.05 | 314,222,682.89 |
OtherExplanations:
None
66.FinancialExpenses
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| InterestExpenses | 80,472,368.46 | 115,220,289.90 |
| Less:InterestIncome | 97,971,379.97 | 118,865,910.23 |
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ExchangeProfitsandLosses
| ExchangeProfitsandLosses | (113,706,529.39) | (41,114,503.87) |
| BankChargesandOtherExpenses | 13,941,609.23 | 11,333,448.88 |
| Total | (117,263,931.67) | (33,426,675.32) |
OtherExplanations:
None
67.OtherIncome
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| ClassificationbyNature | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| GovernmentSubsidies | 203,882,409.00 | 240,560,349.82 |
| RefundsofPersonalIncomeTaxHandlingFees | 3,103,558.18 | 1,950,175.35 |
| AdditionalDeductionofValue-addedTax | 35,642,447.20 | 5,869,503.30 |
| Value-addedTaxExemptionforRetiredVeterans | 12,000.00 | 81,000.00 |
| Total | 242,640,414.38 | 248,461,028.47 |
OtherExplanations:
Referto(3)inSectionXIfordetailsofgovernmentsubsidiesfortheCompany
68.InvestmentIncome?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| InvestmentIncomefromLong-termEquityInvestmentAccountedforbytheEquityMethod | (3,018,027.22) | 1,845,935.98 |
| InvestmentIncomefromtheDisposalofLong-termEquityInvestments | (1,547,547.99) | -- |
| InvestmentIncomefromFinancialAssetsHeldforTradingduringtheHoldingPeriod | -- | 5,814,900.02 |
| DividendIncomefromOtherEquityInstrumentInvestmentsduringtheHoldingPeriod | 2,816,000.00 | 2,816,000.00 |
| DividendIncomefromDebtInvestmentsduringtheHoldingPeriod | 1,485,849.06 | 1,535,377.36 |
| DividendIncomefromotherDebtInvestmentsduringtheHoldingPeriod | 16,461,436.55 | 4,118,595.00 |
| InvestmentIncomefromtheDisposalofFinancialAssetsHeldforTrading | 13,854,020.93 | (8,503,619.01) |
| InvestmentIncomefromtheDisposalofOtherEquityInstrumentInvestments | ||
| InvestmentIncomefromtheDisposalofDebtInvestments | ||
| InvestmentIncomefromtheDisposalofOtherDebtInvestments | 141,277.76 | |
| DebtRestructuringGains | ||
| Total | 30,193,009.09 | 7,627,189.35 |
OtherExplanations:
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None
69.GainsfromNetExposureHedging
□Applicable?NotApplicable
70.GainsfromChangesinFairValue
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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SourcesofGainsfromChangesinFairValue
| SourcesofGainsfromChangesinFairValue | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| FinancialAssetsHeldforTrading | 14,826,169.53 | (38,116,002.85) |
| Including:GainsfromChangesinFairValueArisingfromDerivativeFinancialInstruments | 1,184,930.00 | (36,309,830.06) |
| FinancialLiabilitiesHeldforTrading | ||
| InvestmentPropertiesMeasuredatFairValue | ||
| Total | 14,826,169.53 | (38,116,002.85) |
OtherExplanations:
None
71.CreditImpairmentLosses
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| BadDebtLossesonNotesReceivable | ||
| BadDebtLossesonAccountsReceivable | ||
| BadDebtLossesonOtherReceivables | ||
| ImpairmentLossesonDebtInvestments | ||
| ImpairmentLossesonOtherDebtInvestments | ||
| BadDebtLossesonLong-termReceivables | ||
| FinancialGuarantee-relatedImpairmentLosses | ||
| BadDebtLosses | 3,888,525.41 | (5,225,785.54) |
| Total | 3,888,525.41 | (5,225,785.54) |
72.AssetImpairmentLosses
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| I.ImpairmentLossesonContractAssets | ||
| II.InventoryWrite-downLossesandContractPerformanceCostImpairmentLosses | (5,258,570.82) | (5,317,795.33) |
| III.ImpairmentLossesonLong-termEquityInvestments | ||
| IV.ImpairmentLossesonInvestmentProperties | ||
| V.ImpairmentLossesonFixedAssets | (1,723,356.44) | (97,553.73) |
| VI.ImpairmentLossesonEngineeringMaterials | ||
| VII.ImpairmentLossesonConstructioninProgress | ||
| VIII.ImpairmentLossesonProductiveBiologicalAssets |
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IX.ImpairmentLossesonOilandGasAssets
| IX.ImpairmentLossesonOilandGasAssets | ||
| X.ImpairmentLossesonIntangibleAssets | ||
| XI.ImpairmentLossesonGoodwill | ||
| XII.Others | ||
| Total | (6,981,927.26) | (5,415,349.06) |
OtherExplanations:
None
73.GainsfromDisposalofAssets
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| GainsorLossesfromDisposalofFixedAssets | 29,968.32 | 4,073,026.92 |
| Total | 29,968.32 | 4,073,026.92 |
OtherExplanations:
None
74.Non-operatingRevenuesStatusofNon-operatingRevenues?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | AmountsRecordedinNon-recurringProfitsorLossesfortheCurrentPeriod |
| TotalGainsfromDisposalofNon-currentAssets | |||
| Including:GainsfromDisposalofFixedAssets | |||
| GainsfromDisposalofIntangibleAssets | |||
| GainsfromExchangeofNon-monetaryAssets | |||
| DonationReceipts | -- | -- | |
| GovernmentGrants | |||
| RevenuefromDefaultCompensation | 791,383.42 | 2,185,396.12 | 791,383.42 |
| RevenuefromOutstandingUnsolvedMatters | 191,568.73 | ||
| InsuranceClaims | 10,146,977.57 | 5,691,021.62 | 10,146,977.57 |
| IncomefromCarbonEmissionRights | 127,624,199.99 | 127,624,199.99 | |
| Others | 2,225,435.44 | 2,289,053.52 | 2,225,435.44 |
| Total | 140,787,996.42 | 10,357,039.99 | 140,787,996.42 |
OtherExplanations:
□Applicable?NotApplicable
75.Non-operatingExpenditure
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | Amount | AmountIncurred | AmountsRecordedin |
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IncurredduringtheCurrentPeriod
| IncurredduringtheCurrentPeriod | duringthePreviousPeriod | Non-recurringProfitsorLossesfortheCurrentPeriod | |
| TotalLossesfromDisposalofNon-currentAssets | |||
| Including:LossesfromDisposalofFixedAssets | |||
| LossesfromDisposalofIntangibleAssets | |||
| LossesfromExchangeofNon-monetaryAssets | |||
| ExternalDonations | 3,500,000.00 | 6,614,300.00 | 3,500,000.00 |
| SettlementCostsofLitigation | 233,000,000.00 | 233,000,000.00 | |
| ExpenditureforOutstandingUnsolvedMatters | 13,806.01 | ||
| InventoryLosses | 13,806.01 | ||
| LossesfromDestructionorScrappingofNon-currentAssets | 34,405,586.69 | 42,988,929.16 | 34,405,586.69 |
| DefaultLosses | 1,583,575.13 | 329,691.76 | 1,583,575.13 |
| Others | 10,122,939.94 | 50,586,631.95 | 10,122,939.94 |
| Total | 282,612,101.76 | 100,614,814.20 | 282,612,101.76 |
OtherExplanations:
None
76.IncomeTaxExpenses
(1)TableofIncomeTaxExpenses
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| CurrentIncomeTaxExpenses | 593,906,133.42 | 494,001,746.26 |
| DeferredIncomeTaxExpenses | 15,127,342.15 | 48,184,178.41 |
| Total | 609,033,475.57 | 542,185,924.67 |
DuetotheimplementationofInterpretationNo.16,theamountincurredduringthepreviousperiodhasbeenadjusted.Referto(40)inSectionVfordetails.
(2)AdjustmentProcessforAccountingProfitsandIncomeTaxExpenses?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod |
| TotalProfits | 3,349,460,691.13 |
| IncomeTaxExpensesCalculatedatStatutory/ApplicableTaxRates | 502,419,103.67 |
| ImpactofDifferentTaxRatesApplicabletoSubsidiaries | 6,093,774.47 |
| ImpactofIncomeTaxforthePreviousPeriodBeforeAdjustment | 3,293,007.68 |
| ImpactofNon-taxableIncome | 69,020,124.44 |
| ImpactofNon-deductibleCosts,ExpensesandLosses | 37,442,680.99 |
| ImpactofDeductibleLossesfromUnrecognizedDeferredIncomeTaxAssetsforthePreviousPeriodsBeforeUsage | 465,072.17 |
| ImpactofDeductibleTemporaryDifferenceorDeductibleLossesfromUnrecognizedDeferredIncomeTaxAssetsfortheCurrentPeriod | 6,564,263.75 |
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ImpactofAdditionalDeductionofResearchandDevelopmentExpenses
| ImpactofAdditionalDeductionofResearchandDevelopmentExpenses | (16,264,551.60) |
| IncomeTaxExpenses | 609,033,475.57 |
OtherExplanations:
□Applicable?NotApplicableNone
77.OtherComprehensiveIncome?Applicable□NotApplicable
Refertothenotesfordetails.
78.CashFlowStatementItems
(1)CashRelatedtoOperatingActivitiesOtherreceivedcashrelatedtooperatingactivitiesreceived?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| InterestIncome | 114,039,182.47 | 102,290,433.65 |
| IncomefromGovernmentGrants | 202,025,706.38 | 198,687,827.92 |
| Others | 132,878,364.29 | 42,766,511.48 |
| Total | 448,943,253.14 | 343,744,773.05 |
Explanationofotherreceivedcashrelatedtooperatingactivities:NoneOtherpaidcashrelatedtooperatingactivities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| ExpenseExpenditure | 670,841,147.77 | 652,607,761.30 |
| TemporaryBorrowings | 1,091,366.04 | 1,698,173.60 |
| OtherExpenditures | 38,323,115.45 | 26,521,875.18 |
| Total | 710,255,629.26 | 680,827,810.08 |
Explanationofotherpaidcashrelatedtooperatingactivities:None
(2)CashRelatedtoInvestmentActivitiesSignificantreceivedcashrelatedtoinvestmentactivities
□Applicable?NotApplicableSignificantpaidcashrelatedtoinvestmentactivities
□Applicable?NotApplicableOtherreceivedcashrelatedtoinvestmentactivities
□Applicable?NotApplicableOtherpaidcashrelatedtoinvestmentactivities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| GainsfromExchangeSettlement | 9,047,530.00 | 34,278,559.79 |
| Total | 9,047,530.00 | 34,278,559.79 |
Explanationofotherpaidcashrelatedtoinvestmentactivities:None
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(3)CashRelatedtoFinancingActivitiesOtherreceivedcashrelatedtofinancingactivities?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| RestrictedMonetaryFunds | 389,646,523.23 | 441,674,397.67 |
| Total | 389,646,523.23 | 441,674,397.67 |
Explanationofotherreceivedcashrelatedtofinancingactivities:NoneOtherpaidcashrelatedtofinancingactivities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| RestrictedMonetaryFunds | 647,996,830.06 | 409,416,747.79 |
| RepurchasedShares | 571,185,981.88 | 891,788,014.84 |
| PrincipalandLeaseDepositsforLeaseLiabilities | 4,516,102.75 | 4,402,628.85 |
| Total | 1,223,698,914.69 | 1,305,607,391.48 |
Explanationofotherpaidcashrelatedtofinancingactivities:NoneChangesinLiabilitiesArisingfromFinancingActivities
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | BeginningBalance | IncreaseduringtheCurrentPeriod | DecreaseduringtheCurrentPeriod | EndingBalance | ||
| CashChanges | Non-cashChanges | CashChanges | Non-cashChanges | |||
| Short-termBorrowings | 1,543,869,058.69 | 5,147,451,612.54 | 28,249,672.43 | 4,853,262,314.68 | 131,475,397.92 | 1,734,832,631.06 |
| Long-termBorrowings | 2,531,597,521.77 | 1,149,732,044.83 | -- | 1,586,947,521.77 | -- | 2,094,382,044.83 |
| LeaseLiabilities | 6,041,078.68 | -- | 4,128,474.03 | 4,014,942.61 | 631,377.29 | 5,523,232.81 |
| Total | 4,081,507,659.14 | 6,297,183,657.37 | 32,378,146.46 | 6,444,224,779.06 | 132,106,775.21 | 3,834,737,908.70 |
4)ExplanationofPresentingCashFlowsatNetAmount
□Applicable?NotApplicable
(5)SignificantEventsandFinancialEffectsThatDoNotInvolveCurrentCashReceiptsorPaymentsbutMayAffecttheCompany'sFinancialPositionorMayAffecttheCompany’sCashFlowsintheFuture
□Applicable?NotApplicable
79.SupplementaryInformationforCashFlowStatements
(1)SupplementaryInformationforCashFlowStatements?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| SupplementaryInformation | AmountfortheCurrentPeriod | AmountforthePreviousPeriod |
| 1．AdjustingNetProfittoCashFlowsfromOperatingActivities: | ||
| NetProfit | 2,740,427,215.56 | 3,180,949,695.48 |
| Plus:AssetImpairmentReserves | 6,981,927.26 | 5,415,349.06 |
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CreditImpairmentLosses
| CreditImpairmentLosses | (3,888,525.41) | 5,225,785.54 |
| DepreciationofFixedAssets,DepletionofOilandGasAssets,andDepreciationofProductiveBiologicalAssets | 1,275,227,848.29 | 1,311,010,852.63 |
| AmortizationofRight-of-UseAssets | 3,715,360.79 | 3,888,280.66 |
| AmortizationofIntangibleAssets | 45,749,650.73 | 37,303,367.68 |
| AmortizationofLong-termDeferredExpenses | 36,976,072.81 | 26,321,001.29 |
| LossesonDisposalofFixedAssets,IntangibleAssetsandOtherLong-termAssets("-"forgains) | (29,968.32) | (2,679,296.59) |
| LossesonScrappingofFixedAssets("-"forgains) | 34,405,586.69 | 43,033,940.23 |
| LossesonChangesinFairValue("-"forgains) | (14,826,169.53) | 38,116,002.85 |
| FinancialExpenses("-"forgains) | (29,377,272.58) | 75,739,035.49 |
| InvestmentLosses("-"forgains) | (30,193,009.09) | (7,627,189.35) |
| DecreaseinDeferredIncomeTaxAssets("-"forincrease) | 14,034,060.21 | 30,436,785.37 |
| IncreaseinDeferredIncomeTaxLiabilities("-"fordecrease) | 1,093,281.94 | 17,704,399.74 |
| DecreaseinInventories("-"forincrease) | 202,965,494.39 | 1,128,652,537.16 |
| DecreaseinOperatingReceivables("-"forincrease) | 306,096,165.23 | (23,422,883.89) |
| IncreaseinOperatingPayables("-"fordecrease) | 37,357,071.50 | (644,846,543.75) |
| Others | -- | 3,715,965.28 |
| NetCashFlowArisingfromOperatingActivities | 4,626,714,790.47 | 5,228,937,084.88 |
| 2．SignificantInvestmentandFinancingActivitiesnotInvolvingCashReceiptsorPayments: | ||
| DebttoCapital | ||
| ConvertibleCorporateBondsDueWithinOneYear | ||
| FinancingLeasingFixedAssets | ||
| 3．NetChangesinCashandCashEquivalents: | ||
| EndingCashBalance | 4,131,859,602.14 | 4,780,614,442.73 |
| Minus:BeginningCashBalance | 4,780,614,442.73 | 4,128,799,695.72 |
| Plus:EndingCashEquivalentBalance | ||
| Minus:BeginningCashEquivalentBalance | ||
| NetIncreaseinCashandCashEquivalents | -648,754,840.59 | 651,814,747.01 |
(2)NetCashPaidforAcquiringSubsidiariesfortheCurrentPeriod
□Applicable?NotApplicable
(3)NetCashReceivedforDisposingSubsidiariesfortheCurrentPeriod
□Applicable?NotApplicable
(4)CompositionofCashandCashEquivalents?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| I.Cash | 4,131,859,602.14 | 4,780,614,442.73 |
| Including:CashonHand | ||
| BankDepositsAvailableforImmediatePayment | 4,112,890,088.86 | 4,771,137,028.82 |
| OtherMonetaryFundsAvailableforImmediatePayment | 18,969,513.28 | 9,477,413.91 |
| DepositswithCentralBanksAvailableforPayment | ||
| InterbankDeposits | ||
| InterbankPlacements |
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II.CashEquivalents
| II.CashEquivalents | ||
| Including:BondInvestmentDuewithinThreeMonths | ||
| III.EndingBalanceofCashandCashEquivalents | 4,131,859,602.14 | 4,780,614,442.73 |
| Including:CashandCashEquivalentsRestrictedforUsebytheParentCompanyorSubsidiarieswithintheGroup |
(5)InstancesWhereUsageisRestrictedbutStillClassifiedasCashandCashEquivalents
□Applicable?NotApplicable
(6)MonetaryFundsNotClassifiedasCashandCashEquivalents
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
80.NotestoItemsintheStatementofChangesinOwner'sEquityExplanationofNameof"Other"ItemsAdjustedAgainsttheEndingBalanceforthePreviousYear,AdjustedAmountandOtherMatters:
□Applicable?NotApplicable
81.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems?Applicable□NotApplicable
Unit:Yuan
| Items | EndingForeignCurrencyBalance | ConversionRate | EndingBalanceConvertedtoRenminbi |
| MonetaryFunds | 416,355,390.89 | ||
| Including:USDollar | 56,872,351.39 | 7.1884 | 408,821,210.75 |
| Euro | 979,928.83 | 7.5257 | 7,374,650.39 |
| HongKongDollar | 687.31 | 0.9260 | 636.47 |
| BritishPound | 34.20 | 9.0765 | 310.42 |
| SingaporeDollar | 29,800.00 | 5.3214 | 158,582.86 |
| AccountsReceivable | 443,699,062.82 | ||
| Including:USDollar | 61,724,251.75 | 7.1884 | 443,698,611.28 |
| Euro | 60.00 | 7.5257 | 451.54 |
| HongKongDollar | |||
| OtherReceivables | 579,449.23 | ||
| Including:USDollar | 75,898.40 | 7.1884 | 545,588.06 |
| SingaporeDollar | 6,363.00 | 5.3214 | 33,861.17 |
| Long-termReceivables | 224,080.76 | ||
| Including: | |||
| SingaporeDollar | 42,108.00 | 5.3214 | 224,080.76 |
| AccountsPayable | 11,804,717.28 | ||
| Including:USDollar | 1,622,230.00 | 7.1884 | 11,661,238.13 |
| SingaporeDollar | 26,962.67 | 5.3214 | 143,479.15 |
| OtherPayables | 121,252.42 | ||
| Including:USDollar | 16,867.79 | 7.1884 | 121,252.42 |
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Long-termPayables
| Long-termPayables | 52,520,701.81 | ||
| Including:USDollar | 7,421,322.85 | 7.1884 | 52,520,701.81 |
| AccruedEmployeeCompensation | 58,537.30 | ||
| Including: | |||
| SingaporeDollar | 11,000.00 | 5.3214 | 58,537.30 |
| LeaseLiabilities | 1,525,658.60 | ||
| Including: | |||
| SingaporeDollar | 286,694.05 | 5.3214 | 1,525,658.60 |
| CurrentPortionofNon-currentLiabilities | 832,531.60 | ||
| Including: | |||
| SingaporeDollar | 156,443.79 | 5.3214 | 832,531.60 |
OtherExplanations:
None
(2)Explanationofoverseasoperatingentities,includingdisclosureoftheirmainoverseasoperatinglocations,functionalcurrenciesandselectionbasisforsignificantoverseasoperatingentitiesaswellasdisclosureofreasonsforchangesinfunctionalcurrencies
□Applicable?NotApplicable
82.Leases
(1)AsLessee
?Applicable□NotApplicable
Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities
□Applicable?NotApplicableLeaseexpensesonshort-termleasesorleasesoflow-valueassetswithsimplifiedtreatment
?Applicable□NotApplicable
RMB1,515,474.59yuan
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| InterestofLeaseLiabilities | 407,425.12 | 648,864.51 |
| ExpensesonShort-termLeases | 1,108,049.47 | 1,076,505.08 |
Sale-leasebackTransactionsandJudgementBasis
□Applicable?NotApplicableTotalcashoutflowsrelatedtoleases:4,516,102.75(Unit:YuanCurrency:RMB)
(2)AsLessorOperatingleasesaslessor
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | RevenuefromLeases | Including:RevenueRelatedtoVariableLeasePaymentsNotRecordedinLeaseReceipts |
| HousingStructures | 14,526,861.45 | |
| Equipment | 340,344.35 | |
| Vehicles | 195,796.46 | |
| Total | 15,063,002.26 |
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Financingleasesaslessor
□Applicable?NotApplicableAdjustmentTableforUndiscountedLeaseReceiptsandNetLeaseInvestments
□Applicable?NotApplicableUndiscountedLeaseReceiptsovertheNextFiveYears
□Applicable?NotApplicable
(3)RecognitionofProfitsandLossesfromFinancingLeasesasManufacturerorDealer
□Applicable?NotApplicableOtherExplanations:
None
83.DataResources
□Applicable?NotApplicable
84.Others
□Applicable?NotApplicableVIII.ResearchandDevelopmentExpenses
(1)PresentedbyExpenseNature
□Applicable?NotApplicable
(2)DevelopmentExpendituresonResearchandDevelopmentProjectsQualifyingforCapitalization
□Applicable?NotApplicableSignificantCapitalizedResearchandDevelopmentProjects
□Applicable?NotApplicableDevelopmentExpenditureImpairmentReserves
□Applicable?NotApplicableOtherExplanationsNone
(3)SignificantOutsourcedResearchProjects
□Applicable?NotApplicableIX.ChangesinConsolidationScope
1.EnterpriseMergerNotUndertheSameControl
□Applicable?NotApplicable
2.EnterpriseMergerUndertheSameControl
□Applicable?NotApplicable
3.ReverseAcquisitions
□Applicable?NotApplicable
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4.DisposalofSubsidiariesWhethertherearetransactionsormattersresultinginlossofcontroloversubsidiariesduringthecurrentperiod
□Applicable?NotApplicableOtherExplanations:
?Applicable□NotApplicable
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Name
| Name | ReasonforChanges | ||
| TongliaoTongdeStarchCo.,Ltd. | Disposal | ||
| XinjiangMeihuaInvestmentCo.,Ltd. | Disposal | ||
Whetherthereareinstancesinwhichthedisposalofinvestmentinsubsidiariesisconductedthroughmultipletransactionsandresultsinlossofcontrolduringthecurrentperiod
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
5.ChangesinConsolidationScopeDuetoOtherReasonsExplanationofchangesinconsolidationscopeduetootherreasons(suchasestablishmentofnewsubsidiariesandliquidationofsubsidiaries)andrelatedcircumstances:
?Applicable□NotApplicable
| Name | ReasonforChanges |
| PLUMBIOTECHNOLOGYGROUPPTE.LTD. | NewEstablishment |
| WujiaquJianlongChemicalCo.,Ltd. | NewEstablishment |
6.Others
□Applicable?NotApplicable
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X.EquityinOtherEntities
1.EquityinSubsidiaries
(1)CompositionofBusinessGroup
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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NamesofSubsidiaries
| NamesofSubsidiaries | MainOperatingLocation | RegisteredCapital | PlaceofRegistration | BusinessNature | StockOwnershipRatio(%) | AcquisitionMethod | |
| Direct | Indirect | ||||||
| TongliaoMeihua | Tongliao | 1,800,000,000 | Tongliao | Manufacturing | 100 | InvestmentorEstablishment | |
| XinjiangMeihua | Wujiaqu | 2,500,000,000 | Wujiaqu | Manufacturing | 100 | InvestmentorEstablishment | |
| XinjiangAgriculture | Wujiaqu | 260,000,000 | Wujiaqu | Manufacturing | 100 | MergerNotUndertheSameControl | |
| LangfangR&D | Langfang | 38,000,000 | Tongliao | TechnologicalDevelopment | 100 | InvestmentorEstablishment | |
| LangfangSeasoning | Langfang | 250,000,000 | Tongliao | Manufacturing | 100 | InvestmentorEstablishment | |
| HongKongMeihua | HongKong | 6,277,900 | HongKong | Trading | 100 | InvestmentorEstablishment | |
| LhasaMeihua | Lhasa | 800,000,000 | Lhasa | Investment | 100 | InvestmentorEstablishment | |
| TongliaoJianlong | Tongliao | 133,000,000 | Tongliao | Manufacturing | 100 | MergerNotUndertheSameControl | |
| TongdeStarch | Tongliao | 9,400,000 | Tongliao | Manufacturing | 100 | MergerNotUndertheSameControl | |
| TongliaoSeasoning | Tongliao | 5,000,000 | Tongliao | Manufacturing | 100 | InvestmentorEstablishment | |
| ShanghaiR&D | Shanghai | 31,000,000 | Shanghai | TechnologicalDevelopment | 100 | InvestmentorEstablishment | |
| JilinMeihua | Baicheng | 2,000,000,000 | Baicheng | Manufacturing | 100 | InvestmentorEstablishment | |
| XinjiangInvestment | Urumqi | 10,000,000 | Urumqi | Trading | 100 | InvestmentorEstablishment | |
| LangfangBAIAN | Langfang | 50,000,000 | Langfang | Warehousing | 100 | InvestmentorEstablishment | |
| HengqinMeihua | Hengqin | 50,000,000 | Zhuhai | Investment | 100 | InvestmentorEstablishment | |
| HongKongHolding | HongKong | 5,000,000 | HongKong | Investment | 100 | InvestmentorEstablishment | |
| Cayman | Cayman | 1,800,000,000 | Cayman | Investment | 100 | Investmentor | |
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Company
| Company | Establishment | ||||||
| SingaporeCompany | Singapore | 10,000,000 | Singapore | Trading | 100 | InvestmentorEstablishment | |
| WujiaquJianlong | Wujiaqu | 160,000,000 | Wujiaqu | Manufacturing | 100 | InvestmentorEstablishment |
ExplanationoftheDifferencebetweenOwnershipRatioandVotingRightsRatioinSubsidiaries:
NoneBasisforControllingInvestedUnitswithHalforLessthanHalfofVotingRights,andNotControllingInvestedUnitswithMorethanHalfofVotingRights:
NoneBasisforControllingSignificantStructuredEntitiesIncludedintheConsolidationScope:
NoneBasisforDeterminingWhethertheCompanyisanAgentorPrincipal:
NoneOtherExplanations:
Theaboveregisteredcapitalamountsaresubscription-based.TheregisteredcapitaloftheHongKongholdingcompanyisHKD50million,thatoftheCaymancompanyisUSD5million,andthatoftheSingaporecompanyisSGD10million.
(2)SignificantNon-Wholly-OwnedSubsidiaries
□Applicable?NotApplicable
(3)MainFinancialInformationofSignificantNon-Wholly-OwnedSubsidiaries
□Applicable?NotApplicable
(4)SignificantRestrictionsontheUseofBusinessGroup’sAssetsandSettlementofBusinessGroup’sDebts
□Applicable?NotApplicable
(5)FinancialSupportorOtherSupportProvidedforStructuredEntitiesIncludedintheScopeofConsolidatedFinancialStatements
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicable
2.TransactionswhereOwners’EquitySharesinSubsidiariesChangebutControlisMaintained
□Applicable?NotApplicable
3.EquityinJointVenturesorAssociates
?Applicable□NotApplicable
(1)SignificantJointVenturesorAssociates
?Applicable□NotApplicable
| NamesofJointVenturesorAssociates | MainOperatingLocation | PlaceofRegistration | BusinessNature | StockOwnershipRatio(%) | AccountingTreatmentMethodsforInvestmentin | |
| Direct | Indirect | |||||
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JointVentureor
Associates
| JointVentureorAssociates | ||||||
| TongliaoDeshengBio-TechCo.,Ltd. | Tongliao | Tongliao | Manufacturing | 49 | -- | EquityMethod |
ExplanationoftheDifferencebetweenOwnershipRatioandVotingRightsRatioinJointVenturesorAssociates:
NoneBasisforHoldingLessthan20%VotingRightsbutHavingSignificantInfluence,orHolding20%orMoreVotingRightsbutNotHavingSignificantInfluence:
None
(2)MainFinancialInformationofSignificantJointVentures
□Applicable?NotApplicable
(3)MainFinancialInformationofSignificantAssociates
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| EndingBalance/AmountIncurredDuringtheCurrentPeriod | BeginningBalance/AmountIncurredDuringthePreviousPeriod | |||
| TongliaoDeshengBio-TechCo.,Ltd. | XXCompany | TongliaoDeshengBio-TechCo.,Ltd. | XXCompany | |
| CurrentAssets | 27,738,137.26 | 35,266,317.68 | ||
| Non-CurrentAssets | 18,485,239.24 | 16,902,235.23 | ||
| TotalAssets | 46,223,376.50 | 52,168,552.91 | ||
CurrentLiabilities
| CurrentLiabilities | 26,873,303.27 | 25,595,120.54 | |
| Non-CurrentLiabilities | |||
| TotalLiabilities | 26,873,303.27 | 25,595,120.54 |
MinorityShareholders’Equity
| MinorityShareholders’Equity | |||
| Shareholders’EquityAttributabletotheParentCompany | 19,350,073.23 | 26,573,432.37 |
NetAssetShareCalculatedbyStockOwnershipRatio
| NetAssetShareCalculatedbyStockOwnershipRatio | 9,481,535.88 | 13,020,981.86 | |
| Adjustments | |||
| --Goodwill | |||
| --UnrealizedProfitsonInternalTransactions | |||
| --Others | |||
| BookValueofEquityInvestmentsinAssociates | 6,874,939.88 | 12,219,697.23 | |
| FairValueofEquityInvestmentsinAssociateswithPublicQuotation |
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OperatingRevenues
| OperatingRevenues | 101,724,233.18 | 84,281,037.60 | |
| NetProfits | -4,255,571.27 | 437,493.17 | |
| NetProfitsfromDiscontinuedOperations | |||
| OtherComprehensiveIncome | |||
| TotalComprehensiveIncome | -4,255,571.27 | 437,493.17 |
DividendsReceivedfromAssociatesduringtheCurrentYear
| DividendsReceivedfromAssociatesduringtheCurrentYear | 2,395,866.49 |
OtherExplanations:
None
(4)ConsolidatedFinancialInformationofInsignificantJointVenturesandAssociates
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| EndingBalance/AmountIncurredDuringtheCurrentPeriod | BeginningBalance/AmountIncurredDuringthePreviousPeriod | |
| JointVentures: | ||
| AggregateBookValueofInvestment | ||
| AggregateAmountCalculatedBasedonOwnershipRatiosfortheFollowingItems | ||
| --NetProfits | ||
| --OtherComprehensiveIncome | ||
| --TotalComprehensiveIncome | ||
Associates:
| Associates: | ||
| AggregateBookValueofInvestment | 6,722,533.41 | |
| AggregateAmountCalculatedBasedonOwnershipRatiosfortheFollowingItems | ||
| --NetProfits | 1,631,564.33 | |
| --OtherComprehensiveIncome | ||
| --TotalComprehensiveIncome | 1,631,564.33 | |
OtherExplanations:
None
(5)ExplanationofSignificantRestrictionsontheAbilityofJointVenturesorAssociatestoTransferFundstotheCompany
□Applicable?NotApplicable
(6)ExcessiveLossesIncurredbyJointVenturesorAssociates
□Applicable?NotApplicable
(7)UnrecognizedCommitmentsRelatedtoInvestmentsinJointVentures
□Applicable?NotApplicable
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(8)ContingentLiabilitiesRelatedtoInvestmentsinJointVenturesorAssociates
□Applicable?NotApplicable
4.SignificantJointOperations
□Applicable?NotApplicable
5.EquityinStructuredEntitiesNotIncludedintheScopeofConsolidatedFinancialStatementsExplanationofStructuredEntitiesNotIncludedintheScopeofConsolidatedFinancialStatements:
□Applicable?NotApplicable
6.Others
□Applicable?NotApplicableXI.GovernmentGrants
1.GovernmentGrantsRecognizedasReceivablesattheEndoftheReportingPeriod
□Applicable?NotApplicableReasonsforNotReceivingExpectedAmountsofGovernmentGrantsattheAnticipatedTiming
□Applicable?NotApplicable
2.ItemsofLiabilitiesRelatedtoGovernmentGrants
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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FinancialStatementItems
| FinancialStatementItems | BeginningBalance | NewlyAddedGrantsfortheCurrentPeriod | AmountRecordedinNon-operatingRevenuefortheCurrentPeriod | AmountTransferredtoOtherIncomefortheCurrentPeriod | OtherChangesfortheCurrentPeriod | EndingBalance | Asset/Income-related |
| DeferredIncome | 384,988,414.73 | 40,110,000.00 | 44,077,769.22 | 381,020,645.51 | Asset-related | ||
| Total | 384,988,414.73 | 40,110,000.00 | -- | 44,077,769.22 | 381,020,645.51 | / |
3.GovernmentGrantsRecordedintheProfitorLossfortheCurrentPeriod
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Types | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| Asset-related | 44,077,769.22 | 44,910,976.90 |
| Income-related | 159,804,639.78 | 195,649,372.92 |
| Total | 203,882,409.00 | 240,560,349.82 |
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OtherExplanations:
GovernmentGrantsRecordedintheProfitorLossfortheCurrentPeriod
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GrantItems
| GrantItems | AccountingSubjects | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | Asset/Income-related | |
| SupportingSubsidiesforInfrastructure | OtherIncome | 1,260,236.72 | 1,260,236.72 | Asset-related | |
| SubsidyforProductionWaterPipelineConstructionProjects | OtherIncome | 1,599,600.00 | 1,599,600.00 | Asset-related | |
| SubsidyforBoilerDesulfurizationTechnologyTransformationProjects | OtherIncome | 333,600.00 | 333,600.00 | Asset-related | |
| SubsidyforElectricBagCompositeDustRemovalRetrofitProjectatHeatingStations | OtherIncome | 159,600.00 | 159,600.00 | Asset-related | |
| InfrastructureSubsidyFunds | OtherIncome | 48,876.00 | 48,876.00 | Asset-related | |
| ConstructionofaGreen-DesignedIndustrializedDemonstrationLineforLysineProductionwithanAnnualCapacityof400,000Tons | OtherIncome | 652,708.40 | 500,490.93 | Asset-related | |
| IndustrialDevelopmentGuidanceFund | OtherIncome | 32,861,847.92 | 33,746,870.74 | Asset-related | |
| IndustrialDevelopmentGuidanceFund | OtherIncome | 2,830,160.76 | 2,831,076.03 | Asset-related | |
| TechnologyTransformationProjects | OtherIncome | 3,913,107.44 | 3,996,537.00 | Asset-related | |
| BuildingInnovativeCapacity-BiomassPortion | OtherIncome | 418,031.98 | 434,089.48 | Asset-related | |
| SpecialFundIncentivesforBusinessDevelopment | OtherIncome | 122,831,585.00 | 160,738,138.85 | Income-related | |
| SpecialFundforForeignTradeDevelopment | OtherIncome | 3,062,666.37 | 3,282,987.40 | Income-related | |
| SubsidiesforStablePositionsinEnterprises | OtherIncome | 715,182.95 | 2,671,396.36 | Income-related | |
| SocialInsuranceSubsidies | OtherIncome | 2,839,663.12 | 7,061,541.99 | Income-related | |
| 2020BaichengMunicipal-LevelAgriculturalIndustrializationConsortium | OtherIncome | -- | 1,900,000.00 | Income-related | |
| GovernmentGuidanceFunds | OtherIncome | 15,000,000.00 | 14,000,000.00 | Income-related | |
| InternationalLogisticsProjectfor2021 | OtherIncome | -- | 1,740,800.00 | Income-related | |
| One-timeSubsidyforExpansionofPostsinEnterprises | OtherIncome | 229,500.00 | 1,715,000.00 | Income-related | |
| One-timeSubsidyforRetainedWorkerTraining | OtherIncome | 90,801.77 | 29,000.00 | Income-related | |
| EmploymentTrainingSubsidies | OtherIncome | 2,527,589.68 | 1,068,570.01 | Income-related | |
| SpecialSubsidyforAirQualityImprovement | OtherIncome | 5,000,000.00 | -- | Income-related | |
| SpecialFundforScienceandTechnologyDevelopment | OtherIncome | 3,726,000.00 | -- | Income-related | |
| Others | OtherIncome | 3,781,650.89 | 1,441,938.31 | Income-related | |
| Total | 203,882,409.00 | 240,560,349.82 | |||
（III）GovernmentGrantsOffsetAgainsttheBookValueofRelatedAssets
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GrantItems
| GrantItems | Type | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | ItemsofOffsetCosts |
| GovernmentInterestSubsidies | Asset-related | 27,777.78 | 877,777.72 | ConstructioninProgress |
| Total | 27,777.78 | 877,777.72 |
(IV)GovernmentGrantsDeductedfromCostsandExpenses
| GrantItems | Type | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | ItemsofOffsetCosts |
| GovernmentInterestSubsidies | Income-related | 2,083,288.82 | -- | FinancialExpenses-InterestExpense |
| Total | 2,083,288.82 | -- |
XII.RisksRelatedtoFinancialInstruments
1.RisksofFinancialInstruments?Applicable□NotApplicable
TheCompany'smainfinancialinstrumentsincludemonetaryfunds,equityinvestments,debtinvestments,borrowings,receivables,payables,etc.Variousrisksoffinancialinstrumentsfacedindailyactivitiesmainlyincludecreditrisk,liquidityriskandmarketrisk.TherisksassociatedwiththesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheCompanytomitigatetheserisksareasfollows:
TheBoardofDirectorsisresponsibleforplanningandestablishingtheCompany'sriskmanagementframework,formulatingtheCompany'sriskmanagementpoliciesandrelatedguidelines,andsupervisingtheimplementationofriskmanagementmeasures.TheCompanyhasformulatedriskmanagementpoliciestoidentifyandanalyzetherisksfacedbyit.Theseriskmanagementpoliciesprovidespecificprovisionsforspecificrisks,coveringvariousaspectssuchasmarketrisk,creditrisk,andliquidityriskmanagement.TheCompanyregularlyevaluatesthemarketenvironmentandchangesinitsoperationstodeterminewhethertoupdateriskmanagementpoliciesandsystems.TheCompany'sriskmanagementisconductedbytheRiskManagementCommitteeinaccordancewithpoliciesapprovedbytheBoardofDirectors.TheRiskManagementCommitteeidentifies,evaluates,andavoidsrelevantrisksthroughclosecooperationwithotherbusinessdepartmentsoftheCompany.TheCompany'sInternalAuditDepartmentconductsregularauditsofriskmanagementcontrolsandprocedures,andreportstheauditresultstotheCompany'sAuditCommittee.TheCompanydiversifiesitsinvestmentsandbusinessportfoliosappropriatelytomitigatefinancialinstrumentrisksandreducesrisksconcentratedinasingleindustry,specificregions,orspecificcounterpartiesbyformulatingcorrespondingriskmanagementpolicies.
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(I)VariousRisksArisingfromFinancialInstruments
1.CreditRiskCreditriskreferstotheriskoffinanciallossincurredbytheCompanyduetothecounterparty'sfailuretofulfillitsobligationsunderthecontract.Themanagementhasformulatedappropriatecreditpoliciesandmaintainsongoingoversightofcreditriskexposure.TheCompanyhasadoptedapolicytoconducttransactionssolelywithcounterpartieswithgoodcreditstanding.Inaddition,theCompanyevaluatesthecreditqualificationsofcustomersbasedonfactorssuchastheirfinancialposition,thelikelihoodofobtainingguaranteesfromthirdparties,creditrecords,andsuchascurrentmarketconditions.TheCompanycontinuouslymonitorsthebalanceofnotesreceivable,accountsreceivable,andrecoverysituations.Forcustomerswithpoorcreditrecords,theCompanyadoptsmeasuressuchaswrittenpaymentreminders,shorteningcreditperiods,orcancelingcreditperiodstoensurethatitwon’tfacesignificantcreditlosses.Furthermore,theCompanyreviewstherecoverysituationoffinancialassetsoneachbalancesheetdatetoensurethatsufficientexpectedcreditlossreservesareprovidedforrelevantfinancialassets.
OtherfinancialassetsheldbytheCompanyincludemonetaryfunds,otherreceivables,debtinvestments,etc.,andthecreditriskofthesefinancialassetsstemsfromdefaultsbycounterparties,withthemaximumcreditriskexposurebeingthebookvalueofeachfinancialassetinthebalancesheet.ExceptforthefinancialguaranteesmadebytheCompanyasdisclosedin(1)inNoteXIII,theCompanydoesn’tprovideanyotherguaranteesthatmayexposeittocreditrisk.ThemonetaryfundsheldbytheCompanyaremainlydepositedwithfinancialinstitutionssuchasstate-ownedholdingbanksandotherlargeandmedium-sizedcommercialbanks.Themanagementbelievesthatthesecommercialbanksexhibithighcredibilityandassetconditions,andthereisnosignificantcreditriskthatmayleadtoanysignificantlossesduetodefaultbycounterparties.TheCompany’spolicyistocontroltheamountofdepositsinvariouswell-knownfinancialinstitutionsbasedonthemarketreputation,operatingscale,andfinancialbackgroundoftheseinstitutionstolimittheamountofcreditriskexposuretoanysinglefinancialinstitution.
AspartoftheCompany'screditriskassetmanagement,theCompanyusesagingtoassessimpairmentlossesonaccountsreceivableandotherreceivables.TheCompany’saccountsreceivableandotherreceivablesinvolveasignificantnumberofcustomersandtheaginginformationcanreflectthepaymentabilityandbaddebtriskofthesecustomerswithrespecttoaccountsreceivableandotherreceivables.TheCompanycalculateshistoricalactualbaddebtratesfordifferentagingperiodsbasedonhistoricaldataandmakesadjustmentstoobtaintheexpectedlossrate,takingintoaccounttheforecastsofcurrentandfutureeconomicconditions,suchasnationalGDPgrowthrate,totalinvestmentininfrastructure,nationalmonetarypolicy,andotherforward-lookinginformation.Forlong-termreceivables,theCompanycomprehensivelyconsiderssettlementperiods,paymentperiodsagreedinthecontract,thefinancialpositionofdebtors,andtheeconomicsituationoftheindustryinwhichthedebtorsarelocated,andmakesadjustmentsto
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reasonablyassesstheexpectedcreditlossesbasedontheaboveforward-lookinginformation.
AsofDecember31,2024,thebookbalanceofrelatedassetsandthestatusofexpectedcreditimpairmentlossesareasfollows:
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Items
| Items | BookBalance | ImpairmentReserves |
| NotesReceivable | 73,697,475.30 | -- |
| AccountsReceivable | 618,902,793.59 | 30,993,255.38 |
| OtherReceivables | 163,521,800.17 | 117,199,667.10 |
| DebtInvestments | 10,500,000.00 | -- |
| Long-termReceivables(includingthoseduewithinoneyear) | 601,043.91 | -- |
| Total | 867,223,112.97 | 148,192,922.48 |
AsofDecember31,2024,theamountoffinancialguaranteesprovidedbytheCompanytoexternalpartiesamountedtoRMB1,196.732million.Referto(5)inSectionXIVfordetailsofthefinancialguaranteecontracts.TheCompany'smanagementassessedtheoverduestatusofrelatedborrowingsundertheguarantees,thefinancialpositionoftheborrowers,andtheeconomicsituationoftheirrespectiveindustriesandconcludedthatsincetheinitialrecognitionofthesefinancialguaranteecontracts,therehasbeennosignificantincreaseincreditrisk.Therefore,theCompanymeasureditsimpairmentreservesbasedontheamountequivalenttotheexpectedcreditlosseswithinthenext12monthsfortheaforementionedfinancialguaranteecontracts.Duringthereportingperiod,therewerenochangesintheCompany'sassessmentmethodsandsignificantassumptions.AccordingtotheassessmentbytheCompany'smanagement,therewerenosignificantexpectedimpairmentreservesfortherelatedfinancialguarantees.
TheCompany'smajorcustomershavereliableandgoodreputations;therefore,theCompanybelievesthatthesecustomersdonotposesignificantcreditrisks.Giventheextensiverangeofcustomers,theCompanydoesnotfaceanysignificantcreditconcentrationrisks.
2.LiquidityRisk
LiquidityriskreferstotheriskoffundsshortagewhentheCompanyfulfillsitsobligationsforsettlementthroughcashdeliveryorotherfinancialassets.SubsidiariesoftheCompanyareresponsiblefortheirrespectivecashflowforecasts.TheCompany'sFinancialManagementDepartmentcontinuouslymonitorstheshort-termandlong-termfundrequirementsoftheCompanybasedonthecashflowforecastresultsofeachsubsidiaryattheCompanylevel,toensurethemaintenanceofadequatecashreserves.Additionally,itcontinuouslymonitorscompliancewithprovisionsspecifiedinloanagreements,andobtainscommitmentsfrommajorfinancialinstitutionstoprovidesufficientstandbyfundstomeetshort-termandlong-termfundrequirements.Furthermore,theCompanyhasenteredintocreditagreementswithmajorbanksinvolvedinitsmainbusinesstosupportitselfinfulfillingobligationsrelatedtocommercialnotes.AsofDecember31,2024,theCompanyhassecuredbankcreditlines,totalingRMB17.119billion,frommultiplebanksinChina,ofwhichRMB4.754billionhasbeenutilized.
3.MarketRisk
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(1)ExchangeRiskAlthoughtheCompany'smainoperationsarebasedinChina,withtransactionsprimarilysettledinRenminbi,therestillexistsexchangeriskassociatedwithrecognizedforeigncurrencyassets,liabilities,andfutureforeigncurrencytransactions(wheretheUSdollarisusedastheprimaryvaluationcurrency).TheCompany'sFinancialManagementDepartmentisresponsibleformonitoringthescaleoftheCompany’sforeigncurrencytransactionsandforeigncurrencyassetsandliabilitiestominimizetheexposuretoexchangerisk.Tothisend,theCompanymayenterintoforwardforeignexchangecontractsorcurrencyswapcontractstoavoidtheexchangerisk.
1)TheforwardforeignexchangecontractsorcurrencyswapcontractssignedbytheCompanyinthisyearareasfollows:
TheCompany’ssubsidiary,MeihuaHongKong,signedaforwardforeignexchangecontractwithStandardCharteredBank(HongKong)LimitedintheamountofUSD5million.
TheCompany’ssubsidiary,MeihuaHongKong,alsosignedaforwardforeignexchangecontractwithTheBankofTokyo-MitsubishiUFJ,Ltd.(HongKongBranch)intheamountofUSD5million.
2)AsofDecember31,2024,theamountsofforeigncurrencyfinancialassetsandliabilitiesheldbytheCompanyconvertedintoRenminbiareasfollows:
(2)InterestRateRisk
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Items
| Items | EndingBalance | |||||
| USDItems | EuroItems | HKDItems | GBPItems | SGDItems | Total | |
| ForeignCurrencyFinancialAssets: | ||||||
| MonetaryFunds | 408,821,210.75 | 7,374,650.39 | 636.47 | 310.42 | 158,582.86 | 416,355,390.89 |
| AccountsReceivable | 443,698,611.28 | 451.54 | -- | -- | -- | 443,699,062.82 |
| OtherReceivables | 545,588.06 | -- | -- | -- | 33,861.17 | 579,449.23 |
| Long-termReceivables | -- | -- | -- | -- | 224,080.76 | 224,080.76 |
| Subtotal | 853,065,410.09 | 7,375,101.93 | 636.47 | 310.42 | 416,524.79 | 860,857,983.70 |
| ForeignCurrencyFinancialLiabilities: | ||||||
| AccountsPayable | 11,661,238.13 | -- | -- | -- | 143,479.15 | 11,804,717.28 |
| OtherPayables | 121,252.42 | -- | -- | -- | -- | 121,252.42 |
| Long-termPayables | 52,520,701.81 | -- | -- | -- | -- | 52,520,701.81 |
| LeaseLiabilities | 1,525,658.60 | 1,525,658.60 | ||||
| CurrentPortionofNon-currentLiabilities | 832,531.60 | 832,531.60 | ||||
| Subtotal | 64,527,273.12 | -- | -- | -- | 2,501,669.35 | 67,028,942.47 |
TheCompany'sinterestrateriskmainlyarisesfrombankborrowings,etc.FinancialliabilitieswithfloatinginterestrateexposetheCompanytocashflowinterestraterisk,whilefinancialliabilitieswithfixedinterestrateexposetheCompanytofairvalueinterestraterisk.TheCompanydeterminestherelativeproportionsoffixed-rateandfloating-ratecontractsbasedontheprevailingmarketconditionsatthetime.
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TheCompany’sFinancialManagementDepartmentcontinuouslymonitorstheCompany’sinterestratelevels.Ariseininterestrateswouldincreasethecostofnewlyaddedinterest-bearingdebtsandinterestexpendituresonoutstandinginterest-bearingdebtswithfloatingrates,andposesignificantadverseeffectsontheCompany'sfinancialperformance.Themanagementwillmaketimelyadjustmentsbasedonthelatestmarketconditionsandtheseadjustmentsmayincludeinterestrateswaparrangementstomitigateinterestraterisk.
(1)TheCompany’sinterestrateswaparrangementsforthisyearareasfollows:
TheCompanyhadnointerestrateswaparrangementsforthisyear.
(2)AsofDecember31,2024,theCompany'slong-terminterest-bearingdebtsweremainlyfloating-ratecontractsdenominatedinRenminbi,withatotalamountofRMB1,348,094,044.83yuan,asdetailedin(45)inSectionVII.
(3)PriceRisk
Priceriskreferstotheriskoffluctuationscausedbymarketpricechangesotherthan
exchangerateriskandinterestraterisk,mainlyarisingfromchangesincommodityprices,
stockmarketindices,equityinstrumentprices,andotherriskvariables.
2.Hedging
(1)TheCompanyconducthedgingtransactionsforriskmanagement
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
(2)TheCompanyconductseligiblehedgingtransactionsandapplieshedgingaccounting
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
(3)TheCompanyconductseligiblehedgingtransactionsforriskmanagementandexpects
toachieveriskmanagementobjectivesbutdoesnotapplyhedgingaccounting
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
3.TransferofFinancialAssets
(1)ClassificationofTransferMethods
□Applicable?NotApplicable
(2)FinancialAssetsDerecognizedDuetoTransfer
□Applicable?NotApplicable
(3)FinancialAssetsContinuouslyInvolvedinTransfer
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
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XIII.DisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesMeasuredatFairValue
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | EndingFairValue | |||
| Level1FairValueMeasurement | Level2FairValueMeasurement | Level3FairValueMeasurement | Total | |
| I.ContinuousFairValueMeasurement | ||||
| (I)FinancialAssetsHeldforTrading | 312,033,611.07 | 312,033,611.07 | ||
| 1.FinancialAssetsMeasuredatFairValuewithChangesRecordedintheProfitorLossfortheCurrentPeriod | ||||
| (1)DebtInstrumentInvestments | ||||
| (2)EquityInstrumentInvestments | ||||
| (3)DerivativeFinancialAssets | ||||
| Others | 312,033,611.07 | 312,033,611.07 | ||
| 2.FinancialAssetsDesignatedasMeasuredatFairValuewithChangesRecordedintheProfitorLossfortheCurrentPeriod | ||||
| (1)DebtInstrumentInvestments | ||||
| (2)EquityInstrumentInvestments | ||||
| (II)OtherDebtInvestments | ||||
| (III)OtherEquityInstrumentInvestments | 284,294,280.00 | 157,000,000.00 | 441,294,280.00 | |
| (IV)InvestmentProperties | ||||
| 1.LeasedLandUseRights | ||||
| 2.LeasedBuildings | ||||
| 3.LandUseRightHeldforTransferAfterAppreciation | ||||
| (V)BiologicalAssets | ||||
| 1.ConsumableBiologicalAssets | ||||
| 2.ProductiveBiologicalAssets | ||||
| (VI)ReceivablesFinancing | 26,723,054.99 | 26,723,054.99 | ||
| TotalAmountofAssetsMeasuredatFairValueonaContinuousBasis | 284,294,280.00 | 495,756,666.06 | 780,050,946.06 | |
| (VI)FinancialLiabilitiesHeldforTrading | ||||
| 1.FinancialLiabilitiesMeasuredatFairValuewithChangesRecordedintheProfitorLossfortheCurrent | 297,500.00 | 297,500.00 | ||
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Period
| Period | |||
| Including:IssuedBondsHeldforTrading | |||
| DerivativeFinancialLiabilities | 297,500.00 | 297,500.00 | |
| Others | |||
| 2.FinancialLiabilitiesDesignatedasMeasuredatFairValuewithChangesRecordedintheProfitorLossfortheCurrentPeriod | |||
| TotalAmountofLiabilitiesMeasuredatFairValueonaContinuousBasis | 297,500.00 | 297,500.00 | |
| II.Non-ContinuousFairValueMeasurement | |||
| (I)AssetsHeldforSale | |||
| TotalAmountofAssetsMeasuredatFairValueonaNon-ContinuousBasis | |||
| TotalAmountofLiabilitiesMeasuredatFairValueonaNon-ContinuousBasis |
2.BasisforDeterminingMarketPricesforContinuousandNon-continuousLevel1FairValueMeasurementItems?Applicable□NotApplicable
Level1:Unadjustedquotedpricesforidenticalassetsorliabilitiesthatcanbeobtainedinactivemarketsonthemeasurementdate;
3.QualitativeandQuantitativeInformationonValuationTechniquesandSignificantParametersAdoptedforContinuousandNon-continuousLevel2FairValueMeasurementItems?Applicable□NotApplicable
Level2:DirectlyorindirectlyobservableinputsotherthanquotedpricesincludedinLevel1forrelatedassetsorliabilities;
InputsforLevel2include:1)Quotationsforsimilarassetsorliabilitiesinactivemarkets;2)Quotationsforidenticalorsimilarassetsorliabilitiesininactivemarkets;3)Otherobservableinputsbesidesquotations,includinginterestandyieldcurves,impliedvolatility,creditspreadsobservableduringnormalquotationintervals,etc.;4)Inputsvalidatedbythemarket,etc.
4.QualitativeandQuantitativeInformationonValuationTechniquesandSignificantParametersAdoptedforContinuousandNon-continuousLevel3FairValueMeasurementItems
?Applicable□NotApplicable
Level3:Unobservableinputsforrelatedassetsorliabilities.
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5.AdjustmentInformationofBeginningandEndingBookValesandSensitivityAnalysisofUnobservableParametersforContinuousLevel3FairValueMeasurementItems
□Applicable?NotApplicable
6.ReasonsforTransitionbetweenVariousLevelsOccurringduringtheCurrentPeriodandPoliciesforDeterminingTransitioningTimingforContinuousFairValueMeasurementItems
□Applicable?NotApplicable
7.ChangesinValuationTechniquesOccurringDuringtheCurrentPeriodandReasonsforSuchChanges
□Applicable?NotApplicable
8.StatusofFairValueofFinancialAssetsandFinancialLiabilitiesNotMeasuredatFairValue
?Applicable□NotApplicable
Financialassetsandliabilitiesnotmeasuredatfairvaluemainlyinclude:receivables,debtinvestments,short-termborrowings,payables,non-currentliabilitiesduewithinoneyear,long-termborrowings,andequityinstrumentinvestmentsforwhichtherearenoquotationsinactivemarketsandwhosefairvaluecannotbereliablymeasured.Thebookvaluesoftheabovefinancialassetsandliabilitiesnotmeasuredatfairvaluedifferonlyslightlyfromtheirfairvalues.
9.Others
□Applicable?NotApplicableXIV.RelatedPartiesandRelatedTransactions
1.InformationoftheCompany’sParentCompany?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Nameof
ParentCompany
| NameofParentCompany | PlaceofRegistration | BusinessNature | Registered | ParentCompany’sStockOwnershipintheCompany(%) | ParentCompany’sVotingRightsintheCompany(%) |
| MengQingshan | 29.94 |
ExplanationoftheStatusoftheCompany’sParentCompanyNone
TheultimatecontrollingpartyoftheCompanyisMengQingshanOtherExplanations:None
2.InformationoftheCompany’sSubsidiariesRefertothenotesforthedetailsoftheCompany’sSubsidiaries
?Applicable□NotApplicable
Referto(1)inSectionXforequityinsubsidiaries
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3.InformationoftheCompany’sJointVenturesandAssociatesRefertothenotesforthedetailsoftheCompany’ssignificantjointventuresorassociates?Applicable□NotApplicableFordetailsoftheCompany’ssignificantjointventuresorassociates,referto3-EquityinJointArrangementsorAssociatesinSectionX.OtherjointventuresorassociateswithrelatedtransactionswiththeCompanyduringthecurrentperiodorwithbalancesformedfromrelatedtransactionwiththeCompanyduringthepreviousperiodareasfollows:
?Applicable□NotApplicable
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NamesofJointVenturesorAssociates
| NamesofJointVenturesorAssociates | RelationshipwiththeCompany |
| TongliaoDeshengBio-techCo.,Ltd. | Associate |
| BeitunZefengAgriculturalDevelopmentCo.,Ltd. | Associate |
*TheequityheldbytheCompany’ssubsidiary,XinjiangAgriculture,inthecompanywastransferredtoexternalpartiesinAugust2024.OtherExplanations
□Applicable?NotApplicable
4.InformationofOtherRelatedParties
?Applicable□NotApplicable
| NamesofOtherRelatedParties | RelationshipwiththeCompany |
| HuJijun | ShareholderoftheCompany |
| LiangYubo | TheShareholdersandSeniorExecutiveofthecompany. |
| WangAijun | TheShareholdersandSeniorExecutiveofthecompany. |
| HeJun | TheShareholdersandSeniorExecutiveofthecompany. |
| LiuXinghua | DirectoroftheCompany |
| LuChuang | DirectoroftheCompany |
| ChangLibin | SupervisoroftheCompany |
| LiuXiaojing | SupervisoroftheCompany |
| LiuQiang | SupervisoroftheCompany |
| LiuXianfang | SeniorExecutiveoftheCompany |
| WangLihong | SeniorExecutiveoftheCompany |
| WangYou | SeniorExecutiveoftheCompany |
| TibetMeihuaCharityFoundation | TheLegalRepresentativeofthecompanyisadirectrelativeoftheshareholderoftheCompany |
OtherExplanations:
None
5.InformationofRelatedTransactions
(1)RelatedTransactionsforPurchasingandSellingGoods/ProvidingandAcceptingLaborServicesTableofPurchasingGoods/AcceptingLaborServices
?Applicable□NotApplicable
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Unit:YuanCurrency:RMB
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RelatedParty
| RelatedParty | ContentofRelatedTransaction | AmountIncurredduringtheCurrentPeriod | ApprovedTransactionAmount(ifapplicable) | ExceedingTransactionLimitorNot(ifapplicable) | AmountIncurredduringthePreviousPeriod |
| BeitunZefengAgriculturalDevelopmentCo.,Ltd. | RawMaterials | 24,187,662.88 | 66,368,711.12 | ||
| TachengGreenAgriculturalDevelopmentCo.,Ltd.* | RawMaterials | 1,292,257.14 | |||
| Total | 24,187,662.88 | 67,660,968.26 |
TableofSellingGoods/ProvidingLaborServices
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| RelatedParty | ContentofRelatedTransaction | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| TongliaoDeshengBio-techCo.,Ltd. | Goods | 75,539,223.56 | 66,793,916.44 |
| TongliaoDeshengBio-techCo.,Ltd. | Services | 26,489.59 | 23,899.93 |
| Total | 75,565,713.15 | 66,817,816.37 |
ExplanationofRelatedTransactionsforPurchasingandSellingGoods/ProvidingandAcceptingServices
□Applicable?NotApplicable
(2)InformationofRelatedDelegatedManagement/ContractingandDelegatingManagement/OutsourcingTableoftheDelegatedManagement/ContractingbytheCompany:
□Applicable?NotApplicableExplanationofRelatedDelegatedManagement/Contracting
□Applicable?NotApplicableTableofDelegatingManagement/OutsourcingbytheCompany
□Applicable?NotApplicableExplanationofRelatedManagement/Outsourcing
□Applicable?NotApplicable
(3)InformationofRelatedLeasesTheCompanyastheLessor:
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| NameofLessee | TypesofLeasedAsset | LeaseRevenueRecognizedduringtheCurrentPeriod | LeaseRevenueRecognizedduringthePreviousPeriod |
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TongliaoDeshengBio-techCo.,Ltd.
| TongliaoDeshengBio-techCo.,Ltd. | Property | 2,739,061.65 | 2,200,057.73 |
| Total | 2,739,061.65 | 2,200,057.73 |
TheCompanyastheLessee:
□Applicable?NotApplicableExplanationofRelatedLeases
□Applicable?NotApplicable
(4)InformationofRelatedGuaranteeTheCompanyastheGuarantor?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| GuaranteedParty | GuaranteedAmount | StartDateofGuarantee | ExpiryDateofGuarantee | WhethertheGuaranteeHasBeenFullyFulfilled |
| TongliaoMeihua | 10,000,000.00 | 2021/9/9 | 2024/9/7 | Yes |
| TongliaoMeihua | 40,000,000.00 | 2021/9/15 | 2024/9/7 | Yes |
| TongliaoMeihua | 32,000,000.00 | 2021/9/27 | 2024/9/7 | Yes |
| TongliaoMeihua | 97,000,000.00 | 2022/3/30 | 2025/3/30 | Yes |
| TongliaoMeihua | 100,000,000.00 | 2023/5/22 | 2038/5/8 | No |
| TongliaoMeihua | 120,000,000.00 | 2023/3/17 | 2024/3/17 | Yes |
| TongliaoMeihua | 80,000,000.00 | 2023/3/23 | 2024/3/17 | Yes |
| TongliaoMeihua | 100,000,000.00 | 2023/3/30 | 2024/3/30 | Yes |
| TongliaoMeihua | 10,000,000.00 | 2023/11/29 | 2024/11/26 | Yes |
| TongliaoMeihua | 80,000,000.00 | 2024/1/25 | 2025/1/25 | Yes |
| TongliaoMeihua | 80,000,000.00 | 2024/1/25 | 2025/1/25 | Yes |
| TongliaoMeihua | 80,000,000.00 | 2024/1/31 | 2025/1/31 | No |
| TongliaoMeihua | 60,000,000.00 | 2024/3/21 | 2025/3/21 | Yes |
| TongliaoMeihua | 40,000,000.00 | 2024/3/25 | 2025/3/21 | No |
| TongliaoMeihua | 40,000,000.00 | 2024/3/25 | 2025/3/21 | Yes |
| TongliaoMeihua | 60,000,000.00 | 2024/3/27 | 2025/3/21 | No |
| TongliaoMeihua | 80,000,000.00 | 2024/3/29 | 2025/3/21 | Yes |
| TongliaoMeihua | 20,000,000.00 | 2024/3/29 | 2025/3/21 | No |
| TongliaoMeihua | 19,300,000.00 | 2024/6/6 | 2038/5/8 | No |
| TongliaoMeihua | 10,000,000.00 | 2024/6/13 | 2038/5/8 | No |
| TongliaoMeihua | 6,000,000.00 | 2024/6/19 | 2038/5/8 | No |
| TongliaoMeihua | 15,000,000.00 | 2024/6/26 | 2038/5/8 | No |
| TongliaoMeihua | 50,000,000.00 | 2024/10/21 | 2027/10/21 | No |
| TongliaoMeihua | 60,000,000.00 | 2024/10/21 | 2027/10/21 | No |
| TongliaoMeihua | 40,000,000.00 | 2024/10/24 | 2027/10/21 | No |
| TongliaoMeihua | 50,000,000.00 | 2024/10/24 | 2027/10/21 | No |
| TongliaoMeihua | 40,000,000.00 | 2024/11/14 | 2027/10/21 | No |
| TongliaoMeihua | 40,000,000.00 | 2024/11/18 | 2027/10/21 | No |
| TongliaoMeihua | 20,000,000.00 | 2024/11/20 | 2027/10/21 | No |
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TongliaoMeihua
| TongliaoMeihua | 10,000,000.00 | 2021/5/26 | 2024/5/7 | Yes |
| JilinMeihua | 15,238,690.48 | 2021/9/13 | 2029/8/30 | Yes |
| JilinMeihua | 21,875,000.00 | 2021/10/22 | 2029/8/30 | Yes |
| JilinMeihua | 39,772,727.27 | 2021/11/25 | 2029/8/30 | Yes |
| JilinMeihua | 22,840,909.09 | 2021/12/22 | 2029/8/30 | Yes |
| JilinMeihua | 5,000,000.00 | 2021/12/22 | 2029/8/30 | Yes |
| JilinMeihua | 774,778.91 | 2021/8/30 | 2028/12/21 | Yes |
| JilinMeihua | 36,500,000.00 | 2021/9/13 | 2029/8/4 | Yes |
| JilinMeihua | 9,025,000.00 | 2021/10/19 | 2029/8/4 | Yes |
| JilinMeihua | 16,309,090.91 | 2021/11/26 | 2029/8/4 | Yes |
| JilinMeihua | 11,486,363.64 | 2021/12/23 | 2029/8/4 | Yes |
| JilinMeihua | 846,552.38 | 2021/9/2 | 2029/8/4 | Yes |
| JilinMeihua | 41,170,200.00 | 2021/9/18 | 2029/8/4 | Yes |
| JilinMeihua | 10,301,000.00 | 2021/10/22 | 2029/8/4 | Yes |
| JilinMeihua | 18,728,981.82 | 2021/11/26 | 2029/8/4 | Yes |
| JilinMeihua | 13,032,727.27 | 2021/12/24 | 2029/8/4 | Yes |
| JilinMeihua | 103,000,000.00 | 2022/6/28 | 2025/6/26 | No |
| JilinMeihua | 1,000,000.00 | 2022/6/28 | 2025/6/26 | Yes |
| JilinMeihua | 34,000,000.00 | 2022/11/21 | 2025/10/6 | Yes |
| JilinMeihua | 29,000,000.00 | 2023/9/22 | 2025/9/22 | No |
| JilinMeihua | 500,000.00 | 2023/9/22 | 2025/9/22 | Yes |
| JilinMeihua | 500,000.00 | 2023/9/22 | 2025/9/22 | Yes |
| JilinMeihua | 50,000,000.00 | 2023/12/25 | 2024/12/21 | Yes |
| JilinMeihua | 20,000,000.00 | 2023/6/30 | 2024/6/30 | Yes |
| JilinMeihua | 25,000,000.00 | 2023/6/13 | 2024/5/5 | Yes |
| JilinMeihua | 30,000,000.00 | 2024/4/10 | 2025/4/10 | No |
| JilinMeihua | 40,000,000.00 | 2024/4/15 | 2025/4/10 | No |
| JilinMeihua | 25,000,000.00 | 2024/4/18 | 2025/4/10 | No |
| JilinMeihua | 30,000,000.00 | 2024/1/29 | 2024/10/19 | Yes |
| JilinMeihua | 40,000,000.00 | 2024/2/26 | 2024/10/19 | Yes |
| JilinMeihua | 45,000,000.00 | 2024/3/27 | 2025/3/26 | Yes |
| JilinMeihua | 11,000,000.00 | 2024/4/9 | 2025/3/26 | Yes |
| JilinMeihua | 50,000,000.00 | 2024/11/11 | 2024/12/21 | Yes |
| TongliaoMeihua | 27,000,000.00 | 2022/8/3 | 2032/4/23 | Yes |
| TongliaoMeihua | 23,000,000.00 | 2022/8/3 | 2032/4/23 | Yes |
| TongliaoMeihua | 40,000,000.00 | 2022/11/9 | 2032/4/23 | Yes |
| TongliaoMeihua | 53,000,000.00 | 2022/11/23 | 2032/4/23 | Yes |
| TongliaoMeihua | 12,000,000.00 | 2022/11/25 | 2032/4/23 | Yes |
| TongliaoMeihua | 19,500,000.00 | 2023/6/27 | 2029/5/30 | Yes |
| TongliaoMeihua | 500,000.00 | 2023/6/27 | 2029/5/30 | Yes |
| XinjiangMeihua | 150,000,000.00 | 2021/7/14 | 2024/7/11 | Yes |
| XinjiangMeihua | 9,500,000.00 | 2023/5/23 | 2026/5/23 | Yes |
| XinjiangMeihua | 11,222,973.50 | 2023/5/25 | 2026/5/23 | Yes |
| XinjiangMeihua | 28,777,026.50 | 2023/5/29 | 2026/5/23 | Yes |
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XinjiangMeihua
| XinjiangMeihua | 15,000,000.00 | 2024/2/26 | 2027/2/26 | Yes |
| XinjiangMeihua | 35,000,000.00 | 2024/3/14 | 2027/2/26 | Yes |
| XinjiangMeihua | 4,769,421.44 | 2024/2/20 | 2025/2/19 | Yes |
| XinjiangMeihua | 2,900,000.00 | 2024/2/21 | 2025/2/21 | Yes |
| XinjiangMeihua | 9,000,000.00 | 2024/2/22 | 2025/2/22 | Yes |
| XinjiangMeihua | 16,600,000.00 | 2024/2/23 | 2025/2/22 | Yes |
| XinjiangMeihua | 9,539,261.17 | 2024/2/26 | 2025/2/26 | Yes |
| XinjiangMeihua | 9,000,000.00 | 2024/2/27 | 2025/2/27 | Yes |
| XinjiangMeihua | 16,726,946.60 | 2024/2/28 | 2025/2/28 | Yes |
| XinjiangMeihua | 15,266,675.16 | 2024/3/1 | 2025/3/1 | Yes |
| XinjiangMeihua | 19,843,843.13 | 2024/3/4 | 2025/3/3 | Yes |
| XinjiangMeihua | 9,900,000.00 | 2024/3/6 | 2025/3/5 | Yes |
| XinjiangMeihua | 9,000,000.00 | 2024/3/7 | 2025/3/5 | Yes |
| XinjiangMeihua | 9,900,000.00 | 2024/3/11 | 2025/3/8 | Yes |
| XinjiangMeihua | 9,900,000.00 | 2024/3/13 | 2025/3/12 | Yes |
| XinjiangMeihua | 9,900,000.00 | 2024/3/14 | 2025/3/14 | Yes |
| XinjiangMeihua | 21,200,261.42 | 2024/3/21 | 2025/3/21 | Yes |
| XinjiangMeihua | 26,550,000.00 | 2024/3/25 | 2025/3/25 | Yes |
| XinjiangMeihua | 99,000,000.00 | 2024/7/25 | 2027/7/25 | No |
| XinjiangMeihua | 1,000,000.00 | 2024/7/25 | 2027/7/25 | Yes |
| XinjiangMeihua | 49,000,000.00 | 2024/8/21 | 2025/9/21 | No |
| XinjiangMeihua | 1,000,000.00 | 2024/8/21 | 2025/9/21 | Yes |
| Total | 3,060,698,430.69 |
TheCompanyastheGuaranteedParty
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Guarantor | GuaranteedAmount | StartDateofGuarantee | ExpiryDateofGuarantee | WhethertheGuaranteeHasBeenFullyFulfilled |
| XinjiangMeihua | 197,000,000.00 | 2021/12/28 | 2024/12/15 | Yes |
| TongliaoMeihua | 66,438,250.00 | 2022/12/14 | 2025/12/8 | Yes |
| TongliaoMeihua | 337,250.00 | 2022/12/14 | 2025/12/8 | Yes |
| XinjiangMeihua | 98,500,000.00 | 2022/12/14 | 2025/12/8 | Yes |
| XinjiangMeihua | 500,000.00 | 2022/12/14 | 2025/12/8 | Yes |
| TongliaoMeihua,XinjiangMeihua | 46,860,000.00 | 2022/6/13 | 2025/6/13 | No |
| TongliaoMeihua,XinjiangMeihua | 3,280,000.00 | 2022/6/13 | 2025/6/13 | Yes |
| TongliaoMeihua,XinjiangMeihua | 3,280,000.00 | 2022/6/13 | 2025/6/13 | Yes |
| TongliaoMeihua,XinjiangMeihua | 177,000,000.00 | 2023/3/31 | 2026/3/31 | No |
| TongliaoMeihua, | 2,000,000.00 | 2023/3/31 | 2026/3/31 | Yes |
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XinjiangMeihua
| XinjiangMeihua | ||||
| TongliaoMeihua,XinjiangMeihua | 37,000,000.00 | 2023/4/23 | 2026/3/31 | No |
| TongliaoMeihua,XinjiangMeihua | 2,000,000.00 | 2023/4/23 | 2026/3/31 | Yes |
| TongliaoMeihua,XinjiangMeihua | 29,000,000.00 | 2024/6/11 | 2027/6/11 | No |
| TongliaoMeihua,XinjiangMeihua | 1,000,000.00 | 2024/6/11 | 2027/6/11 | Yes |
| TongliaoMeihua,XinjiangMeihua | 98,000,000.00 | 2022/3/7 | 2025/2/24 | Yes |
| TongliaoMeihua | 1,000,000.00 | 2021/9/18 | 2024/9/17 | Yes |
| TongliaoMeihua | 9,000,000.00 | 2021/9/18 | 2024/9/17 | Yes |
| TongliaoMeihua | 112,000,000.00 | 2022/11/17 | 2025/11/14 | No |
| TongliaoMeihua | 84,000,000.00 | 2022/11/17 | 2025/11/14 | Yes |
| TongliaoMeihua | 50,000,000.00 | 2023/8/10 | 2024/1/8 | Yes |
| TongliaoMeihua | 38,000,000.00 | 2023/9/6 | 2024/2/5 | Yes |
| TongliaoMeihua | 50,000,000.00 | 2023/10/25 | 2024/3/14 | Yes |
| TongliaoMeihua | 50,000,000.00 | 2023/11/29 | 2024/4/30 | Yes |
| TongliaoMeihua | 150,000,000.00 | 2023/11/20 | 2024/2/18 | Yes |
| TongliaoMeihua | 30,000,000.00 | 2023/12/8 | 2024/6/7 | Yes |
| TongliaoMeihua | 50,000,000.00 | 2024/1/18 | 2024/2/26 | Yes |
| TongliaoMeihua | 50,000,000.00 | 2024/1/19 | 2024/2/27 | Yes |
| TongliaoMeihua | 60,000,000.00 | 2024/1/30 | 2024/4/8 | Yes |
| TongliaoMeihua | 39,000,000.00 | 2024/2/28 | 2024/4/26 | Yes |
| TongliaoMeihua | 100,000,000.00 | 2024/4/19 | 2024/6/25 | Yes |
| TongliaoMeihua | 100,000,000.00 | 2024/4/19 | 2024/5/17 | Yes |
| TongliaoMeihua | 50,000,000.00 | 2024/5/13 | 2024/6/26 | Yes |
| TongliaoMeihua | 49,000,000.00 | 2024/5/13 | 2024/6/27 | Yes |
| TongliaoMeihua | 100,000,000.00 | 2024/5/23 | 2024/7/12 | Yes |
| TongliaoMeihua | 100,000,000.00 | 2024/6/28 | 2024/8/28 | Yes |
| TongliaoMeihua | 100,000,000.00 | 2024/3/26 | 2024/9/25 | Yes |
| TongliaoMeihua | 90,000,000.00 | 2024/7/31 | 2024/9/18 | Yes |
| TongliaoMeihua,XinjiangMeihua | 100,000,000.00 | 2023/7/12 | 2024/7/12 | Yes |
| TongliaoMeihua,XinjiangMeihua | 150,000,000.00 | 2023/9/7 | 2024/9/7 | Yes |
| TongliaoMeihua,XinjiangMeihua | 200,000,000.00 | 2023/10/23 | 2024/10/23 | Yes |
| TongliaoMeihua,XinjiangMeihua | 200,000,000.00 | 2024/2/23 | 2025/2/23 | No |
| TongliaoMeihua,XinjiangMeihua | 100,000,000.00 | 2024/6/5 | 2025/6/5 | No |
| TongliaoMeihua,XinjiangMeihua | 150,000,000.00 | 2024/9/26 | 2025/9/25 | No |
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TongliaoMeihua,XinjiangMeihua
| TongliaoMeihua,XinjiangMeihua | 100,000,000.00 | 2024/11/11 | 2025/11/11 | No |
| TongliaoMeihua,XinjiangMeihua | 100,000,000.00 | 2024/11/26 | 2025/11/26 | No |
| TongliaoMeihua,XinjiangMeihua | 80,000,000.00 | 2024/4/29 | 2024/7/25 | Yes |
| TongliaoMeihua,XinjiangMeihua | 100,000,000.00 | 2024/5/22 | 2024/7/16 | Yes |
| TongliaoMeihua,XinjiangMeihua | 100,000,000.00 | 2024/7/23 | 2024/10/8 | Yes |
| TongliaoMeihua,XinjiangMeihua | 50,000,000.00 | 2024/7/30 | 2024/9/23 | Yes |
| TongliaoMeihua,XinjiangMeihua | 50,000,000.00 | 2024/7/30 | 2024/9/25 | Yes |
| Total | 3,704,195,500.00 |
ExplanationofRelatedGuarantees
□Applicable?NotApplicableXinjiangMeihuaastheguarantor
| Guarantor | GuaranteedAmount | StartDateofGuarantee | ExpiryDateofGuarantee | WhethertheGuaranteeHasBeenFullyFulfilled |
| TongliaoMeihua | 50,000,000.00 | 2024/4/19 | 2025/4/17 | Yes |
| TongliaoMeihua | 49,000,000.00 | 2021/12/6 | 2024/11/30 | Yes |
| TongliaoMeihua | 100,000,000.00 | 2023/8/28 | 2038/6/20 | No |
| TongliaoMeihua | 46,000,000.00 | 2024/2/6 | 2027/2/4 | No |
| TongliaoMeihua | 4,000,000.00 | 2024/2/6 | 2027/2/4 | Yes |
| TongliaoMeihua | 14,819,832.28 | 2024/12/5 | 2039/11/27 | No |
| TongliaoMeihua | 4,538,021.20 | 2024/12/12 | 2039/11/27 | No |
| TongliaoMeihua | 3,978,347.92 | 2024/12/19 | 2039/11/27 | No |
| TongliaoMeihua | 2,095,843.43 | 2024/12/25 | 2039/11/27 | No |
| Total | 274,432,044.83 |
(5)FundBorrowingbyRelatedParties
□Applicable?NotApplicable
(6)StatusofTransferofAssetsandDebtRestructuringbyRelatedParties
□Applicable?NotApplicable
(7)CompensationofKeyManagementPersonnel
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | AmountIncurredduringthe | AmountIncurredduringthe |
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CurrentPeriod
| CurrentPeriod | PreviousPeriod | |
| CompensationofKeyManagementPersonnel | 1,937.00 | 6,171.00 |
(8)OtherRelatedTransactions
□Applicable?NotApplicableRelatedDonations
| LesseeName | TypeofRelatedTransaction | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| TibetMeihuaCharityFoundation | Donation | 3,500,000.00 | 6,500,000.00 |
| Total | 3,500,000.00 | 6,500,000.00 |
6.StatusofItemsReceivableandPayableUnsettledbyRelatedParties
(1)ItemsReceivable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| ItemName | RelatedParty | EndingBalance | BeginningBalance | ||
| BookBalance | BadDebtReserves | BookBalance | BadDebtReserves | ||
| AccountsReceivable | TongliaoDeshengBio-techCo.,Ltd. | 578,234.45 | 28,911.72 | 241,064.20 | 12,053.21 |
| AdvancePayments | BeitunZefengAgriculturalDevelopmentCo.,Ltd. | 2,930,706.86 | |||
(2)ItemsPayable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| ItemName | RelatedParty | EndingBookBalance | BeginningBookBalance |
| ContractLiabilities | TongliaoDeshengBio-techCo.,Ltd. | 1,651,503.01 | 2,466,558.36 |
| OtherCurrentLiabilities | TongliaoDeshengBio-techCo.,Ltd. | 214,695.39 | 320,652.59 |
(3)OtherItems
□Applicable?NotApplicable
7.CommitmentsbyRelatedParties
□Applicable?NotApplicable
8.Others
□Applicable?NotApplicable
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XV.Share-basedPayments
1.VariousEquityInstruments
□Applicable?NotApplicableStockoptionsorotherequityinstrumentsoutstandingattheendoftheperiod
□Applicable?NotApplicable
2.StatusofShare-basedPaymentsSettledbyEquity
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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MethodsforDeterminingtheFairValueofEquityInstrumentsontheGrantDate
| MethodsforDeterminingtheFairValueofEquityInstrumentsontheGrantDate | ClosingPriceontheGrantDate |
| SignificantParametersforDeterminingtheFairValueofEquityInstrumentsontheGrantDate | |
| BasisforDeterminingtheQuantityofExercisableEquityInstruments | EstimationBasedontheActualQuantityofRestrictedStockRecipients |
| ReasonsforSignificantDifferencesbetweenEstimatesfortheCurrentPeriodandPreviousPeriod | -- |
| AccumulatedAmountofShare-basedPaymentsSettledbyEquityRecordedinCapitalReserves | 240,893,078.26 |
OtherExplanations:
None
3.StatusofShare-basedPaymentsSettledbyCash
□Applicable?NotApplicable
4.Share-basedPaymentExpensesduringtheCurrentPeriod
□Applicable?NotApplicable
5.ModificationandTerminationofShare-basedPayment
□Applicable?NotApplicable
6.Others
□Applicable?NotApplicableXVI.CommitmentsandContingencies
1.SignificantCommitments
?Applicable□NotApplicable
SignificantCommitmentstoExternalPartiesasoftheBalanceSheetDateandTheirNatureandAmounts1．OtherSignificantFinancialCommitments
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(1)ExecutedorPendingM&AAgreements
InNovember2024,theCompany’swholly-ownedsubsidiaryinSingaporesignedaShareandAssetPurchaseAgreementwithKyowaHakkoBioCo.,Ltd.(“KyowaHakko”),awholly-ownedsubsidiaryofKirinHoldingsCompany,Limited(“KirinHoldings”,listedontheTokyoStockExchange,stockcode:2503.T).Accordingtotheagreement,thesubsidiaryintendstoacquireKyowaHakko’sFoodAminoAcids,PharmaceuticalAminoAcids,andHumanMilkOligosaccharides(HMO)businessesandrelatedassetsforJPY10.5billion(equivalenttoapproximatelyRMB500millionbasedontheexchangerateasofDecember31,2024).Thetransactionissubjecttothefinaltermsoftheexecutedagreements.
(2)StatusofMortgagedAssets
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Collateral
| Collateral | MortgageCertificateNo. | OriginalValue | NetValue |
| RawMaterialStorage9＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 14,990,404.00 | 6,979,906.66 |
| RawMaterialStorage8＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 14,201,059.00 | 6,612,367.94 |
| RawMaterialStorage7＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 13,514,204.00 | 6,292,551.44 |
| RawMaterialStorage6＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 13,583,081.00 | 6,324,622.26 |
| RawMaterialStorage4＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 13,742,814.00 | 6,398,997.74 |
| RawMaterialStorage1＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 20,163,386.00 | 8,870,579.66 |
| RawMaterialStorage5＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 13,503,165.00 | 6,287,411.16 |
| RawMaterialStorage3＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 17,435,333.00 | 8,118,326.97 |
| RawMaterialStorage2＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 18,996,456.00 | 8,357,206.23 |
| DryingandScreeningWarehouse | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 307,552.00 | 143,204.07 |
| DryingWorkshopHeaterRoom2＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 529,135.00 | 246,378.64 |
| DryingWorkshopHeaterRoom1＃ | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 516,159.00 | 240,336.52 |
| SolidMaterialWarehouse1 | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 13,079,741.00 | 5,754,236.17 |
| SolidMaterialWarehouse2 | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 10,996,312.00 | 4,894,280.42 |
| FinishedProductWarehouse1# | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 10,717,243.00 | 4,990,216.30 |
| FinishedProductWarehouse2# | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 10,577,682.00 | 4,925,233.28 |
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Collateral
| Collateral | MortgageCertificateNo. | OriginalValue | NetValue |
| FinishedProductWarehouse3# | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 10,701,563.00 | 4,982,915.47 |
| By-productWarehouse3#Warehouse | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 10,866,449.00 | 5,059,690.23 |
| By-productWarehouse2#Warehouse | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 11,247,592.00 | 5,237,159.94 |
| By-productWarehouse1#Warehouse | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 10,997,633.00 | 4,838,243.99 |
| XanthanGumAlcoholDistillationWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 8,187,283.48 | 5,224,264.67 |
| XanthanGumExtractionWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 16,893,614.83 | 8,270,502.93 |
| XanthanGumTransformerRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 1,434,516.48 | 697,902.99 |
| ProteinSeparationWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 14,058,624.73 | 6,374,977.99 |
| NatamycinWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 8,231,315.42 | 4,360,744.86 |
| Five-effectEvaporatorWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 6,933,282.00 | 3,042,571.69 |
| RawMaterialSugarScreeningWarehouseNo.2 | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 634,154.00 | 294,686.67 |
| RawMaterialSoakingWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 29,640,460.00 | 14,402,232.07 |
| RawMaterialSugarBy-productPackagingFloor | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 17,822,889.94 | 7,871,159.02 |
| RawMaterialSugarPurificationWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 14,646,936.25 | 7,254,817.78 |
| RawMaterialSugarDistributionandAirCompression | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 2,117,267.00 | 983,878.22 |
| RawMaterialSugarGlucoseWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 37,794,396.15 | 16,642,358.92 |
| RawMaterialSugarScreeningWarehouse1 | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 412,800.00 | 191,825.22 |
| RawMaterialSugarCirculatingPumpRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 3,186,753.00 | 1,480,860.24 |
| RawMaterialMainWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 59,323,738.89 | 27,305,566.30 |
| Lysine4#GasDistributionStation | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 772,826.00 | 359,126.45 |
| Lysine35KVSubstation | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 1,465,463.00 | 680,989.56 |
| LysineCirculatingPumpRoom | Xin(2019)SixthDivisionRealEstate | 2,500,247.30 | 1,321,113.65 |
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Collateral
| Collateral | MortgageCertificateNo. | OriginalValue | NetValue |
| OwnershipNo.0009809 | |||
| XanthanGumPowerWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 2,222,388.00 | 1,010,607.68 |
| XanthanGumFermentationWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 14,346,498.12 | 10,058,119.03 |
| NucleotideExtractionWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 30,815,812.46 | 14,887,331.06 |
| CompoundFertilizer2＃GasDistributionStation | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 580,671.00 | 269,833.57 |
| HeatingStationSteam-drivenAirCompressorRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 16,688,383.10 | 7,798,898.22 |
| HeatingStationCirculatingPumpRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 1,196,729.00 | 557,227.11 |
| GlutamicAcidPumpRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 1,893,406.00 | 830,894.31 |
| GlutamicAcidFreezingStation | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 8,183,385.00 | 3,591,161.49 |
| GlutamicAcidHydrolysisWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 5,212,818.96 | 2,291,573.36 |
| GlutamicAcidExtractionWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 28,462,914.44 | 13,073,617.40 |
| GlutamicAcid35KVSubstation | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 799,965.56 | 372,199.13 |
| GlutamicAcidFermentationWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 17,715,647.28 | 7,811,526.15 |
| XanthanGumPumpRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 4,114,910.00 | 1,871,212.63 |
| SulfuricAcidPumpRoom(GlutamicAcid) | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 1,210,180.00 | 530,227.07 |
| Serine3＃GasDistributionStation | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 609,865.00 | 283,399.84 |
| SerinePumpRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 2,629,842.00 | 1,222,067.77 |
| SerineFermentationWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 17,693,098.55 | 7,803,560.42 |
| SerineIngredients | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 13,096,211.83 | 6,115,559.47 |
| SerineExtractionWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 8,510,956.00 | 3,684,518.71 |
| LysinePowerWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 4,385,976.00 | 2,038,130.36 |
| LysineFermentationWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 40,377,343.73 | 18,825,769.70 |
| LysineExtractionWorkshop | Xin(2019)SixthDivisionRealEstate | 67,382,586.50 | 31,650,103.01 |
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Collateral
| Collateral | MortgageCertificateNo. | OriginalValue | NetValue |
| OwnershipNo.0009809 | |||
| NucleotideSynthesisintoPhosphorousTrichlorideWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 3,334,525.46 | 1,693,099.55 |
| NucleotideRefiningWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 13,480,692.34 | 6,556,929.93 |
| NucleotideAlcoholTankAreaPumpRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 224,782.09 | 108,799.40 |
| NucleotideAlcoholRecoveryWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 2,363,728.50 | 1,198,205.95 |
| NucleotidePumpRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 4,419,390.13 | 2,128,956.91 |
| NucleotideFermentationWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 22,545,342.65 | 10,860,789.13 |
| NucleotideSynthesisWorkshop | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 28,375,495.02 | 13,908,152.31 |
| NucleotideUtilityBuilding | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 12,768,362.22 | 6,437,528.50 |
| RawMaterialWeighingRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009811 | 903,725.00 | 397,580.43 |
| PowerDistributionRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009811 | 430,830.00 | 200,203.59 |
| RainwaterPumpRoom | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009811 | 1,506,087.00 | 699,867.34 |
| LandUseRights | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009811 | 10,225,735.75 | 7,687,737.61 |
| LandUseRights | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009809 | 9,371,986.53 | 6,839,873.37 |
| LandUseRights | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009810 | 9,536,118.32 | 6,959,660.21 |
| LandUseRights | Xin(2019)SixthDivisionRealEstateOwnershipNo.0009813 | 7,764,762.63 | 5,666,887.52 |
| Total | 827,303,398.98 | 872,104,683.64 | |
*Exceptfortheabovecommitments,theCompanyhasnotmadeothersignificantcommitmentsthatnecessitatedisclosurebuthavenotbeendisclosedasofDecember31,2024.
2.Contingencies
(1)SignificantContingenciesasoftheBalanceSheetDate
?Applicable□NotApplicable1．ContingenciesArisingfromPendingLitigationorArbitrationandTheirFinancialImpact
LitigationrelatedtotheOriginalDalianHanxinBio-PharmaceuticalCo.,Ltd.AsstipulatedintheEquityTransferAgreementsignedbyLhasaMeihuaBiological
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InvestmentHoldingCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany,totransfer100%oftheequityheldintheDalianHanxinBio-PharmaceuticalCo.,Ltd..(nowknownasAIMHonestyBiopharmaceuticalCo.,Ltd.,hereinafterreferredtoas"AIMHonesty")toLiaoningAIMBiologicalVaccineTechnologyGroupCo.,Ltd.(nowknownasAIMVaccineCo.,Ltd.),LhasaMeihuaBiologicalInvestmentHoldingCo.,Ltd.undertakesthatexceptfortheliabilitiesexpresslyrecordedintheauditreportandfinancialstatementsprovidedtotheacquirer,andliabilitiesthatwereabnormallyincurredbyAIMHonestyanditssubsidiariesinthenormalcourseofbusinessaftertheauditbasedateandhavebeendisclosedtotheacquirer,AIMHonestyanditssubsidiarieshavenootherdebtsorcontingentdebts,andagreesthatintheeventofabreachofthecommitment,LhasaMeihuashouldbearthecompensationliabilityforalldirectorindirecteconomiclossessufferedbyotherpartiesinvolvedduetothebreach.InaccordancewiththeaboveprovisionsspecifiedintheEquityTransferAgreement,theCompanyhasalreadyfulfilledsomecompensationobligationsinadvance.PleaserefertotheCompany'spreviousannualreportsfordetails.
LhasaMeihuaBiologicalInvestmentHoldingCo.,Ltd.(hereinafterreferredtoas“LhasaMeihua”),asubsidiaryoftheCompany,receivedaNoticeofDebtRepaymentissuedbyAIMHonestyonOctober13,2020.PursuanttotheCivilJudgment,(2015)DMSCZNo.438issuedbytheIntermediatePeople'sCourtofDalian,LiaoningProvince,KunmingSunshineMeasurementandControlTechnologyCo.,Ltd.(hereinafterreferredtoas"SunshineMeasurementandControl")providedguaranteefortheloanundertheRMBLoanContract,LJZNo.DL1114010272signedwithDalianBranch,BankofJilinCo.,Ltd.onbehalfofAIMHonesty,withtheNo.17-1-3and17-2LandandfivepropertieswithrightofuseabovethelandinKunmingEconomicandTechnologicalDevelopmentZoneascollateral.Theabove-mentionedmortgagedlandandpropertieswerejudiciallyauctionedonApril19,2018,andtheauctionproceedswereusedtorepaythebankloans.Basedonthis,SunshineMeasurementandControlhastherighttorecoverthedebtfromAIMHonesty.
AccordingtorelevantagreementssuchastheEquityTransferAgreementofDalianHanxinBio-PharmaceuticalCo.,Ltd.signedbetweenLhasaMeihua,asubsidiaryoftheCompany,andAIMVaccineCo.,Ltd.,LhasaMeihuaisresponsibleforrealizingthenon-operatingcreditor’srightsofAIMHonestyrelatedtoitsformershareholderTibetYiyuanIndustryCo.,Ltd.(hereinafterreferredtoas"TibetYiyuan")andclearingthedebts.Basedonthis,AIMHonestyissuedtheaforementionedNoticeofDebtRepaymenttoLhasaMeihua.AccordingtotherelevantagreementssuchastheEquityTransferAgreementsignedbetweenLhasaMeihuaandAIMHonesty'sformershareholderTibetYiyuan,TibetYiyuanisresponsibleforrealizingthenon-operatingcreditor’srightsofAIMHonestyandclearingthedebts.Basedontheagreementsmentionedabove,allpartiesinvolvedhavereachedaconsensusagreementthatTibetYiyuananditsaffiliateswillassumeallthedebtsandtheirinterestgeneratedbasedontherecoveryrights.
InDecember2021,accordingtomaterialssuchasthecopyofthelawsuitandthenoticeof
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responsetoactionfiledbyKunmingSunwiseCo.,Ltd.(hereinafterreferredtoas"Sunwise"),acompanyholding100%ofthesharesofSunshineMeasurementandControl,againstAIMHonestyandtheThirdPartySunshineMeasurementandControlforcontractdisputes[TheIntermediatePeople'sCourtofKunming,YunnanProvince(2021)Y01MCNo.4275]deliveredbytheIntermediatePeople'sCourtofKunming,YunnanProvince,Sunwise,asashareholderofSunshineMeasurementandControl,wasdeclaredbankruptbytheIntermediatePeople'sCourtofKunming,YunnanProvinceonMarch15,2019,andYunnanZhenxuLawFirmwasappointedastheadministratorbythecourt.TheadministratorclaimedthatAIMHonestyhadnotpursuedrecoveryfromSunshineMeasurementandControlsinceitfulfilleditsguaranteeobligationsanddemandedAIMHonestytorepaytheindemnityandpaytherelatedinterestandfundsusagefeestoSunshineMeasurementandControl.Accordingtotheagreementsmentionedabove,theCompanyhavereachedaconsensusagreementwithallrelatedpartiesthatTibetYiyuananditsaffiliateswillassumeallthedebtsandtheirinterestgeneratedbasedontherecoveryrights.
OnOctober18,2022,theIntermediatePeople'sCourtofKunmingmadethefollowingjudgments:1)DefendantAIMHonestyBiopharmaceuticalCo.,Ltd.shallrepayRMB28,967,179.55totheThirdPartyKunmingSunshineMeasurementandControlTechnologyCo.,Ltd.withintendaysfromtheeffectivedateofthejudgment;2)DefendantAIMHonestyBiopharmaceuticalCo.,Ltd.shallpaythefundusagefeesonthebasisofRMB28,967,179.55yuanfromAugust17,2021tothedateofrepaymentcalculatedaccordingtotheloanprimeratepublishedbytheNationalInterbankFundingCenterwithintendaysfromtheeffectivedateofthejudgment;3)OtherlitigationrequestsfromtheplaintiffKunmingSunwiseCo.,Ltd.weredismissed.Boththeplaintiffandthedefendanthavesubmittedappeals.
OnJune30,2023,theHigherPeople'sCourtofYunnanProvinceissuedajudgmentwiththedocumentnumberof[(2023)YMZNo.324],rulingtodismisstheappealandupholdtheoriginaljudgment.AIMHonestysubsequentlyfiledapetitionforretrialwiththeSupremePeople’sCourt.OnMarch26,2024,theSupremePeople’sCourtissued(2023)ZGFMSNo.1737,decidingthat:1)ThecasewouldbeheardbytheSupremePeople’sCourt;2)Executionoftheoriginaljudgmentwouldbesuspendedduringtheretrialprocess.ThecasewasheardbytheSupremePeople’sCourtonOctober10,2024.Asofthedateofthisreport,nofinaljudgmenthasbeenreceived.
AsofDecember31,2024,basedonthejudgmentissuedbytheYunnanHighPeople’sCourt,theCompanyhasrecognizedaprovisionforcompensationandrelatedinteresttotalingRMB32,438,161.92yuan.
2．ContingenciesArisingfromtheProvisionofDebtGuaranteestoExternalPartiesandTheirFinancialImpact
Referto5(4)-StatusofRelatedGuaranteesinSectionXIVfordetailsofguaranteesprovidedtorelatedparties.
Exceptfortheabovecontingencies,theCompanyhasnoothersignificantcontingenciesthatrequiredisclosurebuthavenotbeendisclosedasofDecember31,2024.
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(2)ExplanationshouldbealsoprovidedeveniftheCompanyhasnosignificantcontingenciesthatrequiredisclosure:
□Applicable?NotApplicable
3.Others
□Applicable?NotApplicableXVII.MattersaftertheBalanceSheetDate
1.SignificantNon-AdjustingMatters
□Applicable?NotApplicable
2.StatusofProfitDistribution
?Applicable□NotApplicable
Unit:HundredsofMillionsCurrency:RMB
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ProfitsorDividendstobeDistributed
| ProfitsorDividendstobeDistributed | 12.00 |
| ProfitsorDividendsDeclaredforDistributionAfterDeliberationandApproval |
3.SalesReturns
□Applicable?NotApplicable
4.ExplanationofMattersafterOtherBalanceSheetDates
?Applicable□NotApplicable
ShandongFufengFermentationCo.,Ltd.(“ShandongFufeng”)initiallyfiledalegalcomplaintagainsttheCompanyanditssubsidiaryXinjiangMeihuaonDecember3,2014,alleginginfringementoftradesecretsrelatedtoxanthangumproduction.Followingmultiplecourtproceedings,onMarch4,2025,underthemediationofanenforcementjudgeoftheJinanIntermediatePeople’sCourt,theCompanyanditswhollyownedsubsidiaryXinjiangMeihuaenteredintoanenforcementsettlementagreementwithShandongFufengregardingthetradesecretdispute.Accordingtotheagreement,theCompanyandXinjiangMeihuamadeaone-timepaymentofRMB233milliontoShandongFufengbyMarch14,2025.Inreturn,ShandongFufengwastosubmitanapplicationforwithdrawalofitslawsuit(Case(2025)LMCNo.4)totheShandongHighPeople’sCourtbyMarch7,2025,andrequesttheJinanIntermediatePeople’sCourttoliftenforcementmeasuresagainsttheCompany,XinjiangMeihua,andrelatedpersonnel,includingbutnotlimitedtotheremovalfromthelistofdishonestpersonssubjecttoenforcement,andtocooperateinthecompletionofcaseclosureprocedures.Asofthedateofapprovalofthisfinancialreport,ShandongFufenghassubmittedtherelevantapplicationforwithdrawal,XinjiangMeihuahasfullypaidthesettlementamount,theCompanyandrelatedpartieshavebeenremovedfromthelistofenforcementanddishonestpersons,andtheJinanIntermediatePeople’sCourthasissueda“NoticeofCaseClosure.”
Exceptfortheabovesubsequentevent,asofthedateofapprovalofthisfinancialreport,the
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Companyhadnoothermaterialsubsequenteventsthatshouldhavebeendisclosedbutwerenot.XVIII.OtherSignificantMatters
1.CorrectionofPriorAccountingErrors
(1)RetrospectiveRestatement
□Applicable?NotApplicable
(2)ProspectiveApplication
□Applicable?NotApplicable
2.SignificantDebtRestructuring
□Applicable?NotApplicable
3.AssetSwap
(1)ExchangeofNon-monetaryAssets
□Applicable?NotApplicable
(2)OtherAssetSwap
□Applicable?NotApplicable
4.PensionPlans
□Applicable?NotApplicable
5.TerminationofOperations
□Applicable?NotApplicable
6.SegmentInformation
(1)DeterminationBasisandAccountingPoliciesforReportingSegments
□Applicable?NotApplicable
(2)FinancialInformationofReportingSegments
□Applicable?NotApplicable
(3)Ifthecompanydoesnothavereportingsegments,orcannotdisclosethetotalassetsandliabilitiesofeachreportingsegment,thereasonsshouldbeexplained.
?Applicable□NotApplicable
TheCompanydeterminesoperatingsegmentsbasedoninternalorganizationalstructure,managementrequirements,andinternalreportingsystems.TheoperatingsegmentsoftheCompanyrefertocomponentsthatmeetthefollowingconditions:
(1)Thecomponentgeneratesrevenueandincursexpensesinitsdailyactivities;
(2)Themanagementcanevaluatetheoperatingresultsofthecomponentonaregularbasistodecidetheresourceallocationforitandassessitsperformance;
(3)Relevantaccountinginformationsuchasfinancialstatus,operatingresults,andcashflowsofthecomponentcanbeobtained.
TheCompanydeterminesreportingsegmentsbasedonoperatingsegments,andanoperatingsegmentisdeterminedasareportingsegmentifitmeetsoneofthefollowingconditions:
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(1)Theoperatingsegment'srevenueaccountsfor10%ormoreofthetotalrevenueofallsegments;
(2)Theabsoluteamountofsegmentprofit(orloss)forthesegmentaccountsfor10%ormoreofeitherthetotalprofitofprofitablesegmentsorthetotallossofloss-makingsegments,whicheverisgreater.
TheCompanyhasnotdisclosedsegmentreportsmainlybecause:theCompany'ssalesrevenueandgrossprofitaredisclosedbasedonthesegmentbasisofdailyoperatingmanagement.Additionally,itemssuchasmanagementexpenses,financialexpensesandtaxesontheincomestatementandassetsandliabilitiescannotbesplitanddisclosedaccordingtosegmentrequirements.
(1)TongliaoMeihuaandXinjiangMeihua,subsidiariesoftheCompany,producemultipleproductsacrossseveralsegments.Therefore,managementexpenses,financialexpenses,incometax,andotheritemsontheincomestatement,includingcorrespondingitemsoftheCompany,cannotbeattributedtospecificproducts;
(2)TheCompanyisacapital-intensivemanufacturingenterprise.Althoughitproducesvariousproducts,themanufacturingprocessesaresimilar,withmanyfixedassetsbeingshared.Someproductionlinesalsoproducemultiplekindsofproductsthroughouttheyear.Hence,thefixedassetsusedforproductioncannotbedistinguishedbysegments.
(3)Apartfromproductionlines,theCompanyhasnumeroussharedfacilitiessuchasheatingstations,sewagetreatment,andbasicchemicalproductionlines.Theproductsandservicesprovidedbythesefacilitiesaresharedamongmultiplesegments,makingitimpossibletodistinguishthembysegments.
(4)TheCompany'sdebtfinancingcannotbespecificallyallocatedtospecificbusinesssegments.Therefore,segmentinformationisnotpresentedinthisfinancialstatement.
(4)OtherExplanations
□Applicable?NotApplicable
7.OtherSignificantTransactionsandMattersAffectingDecisionsbyInvestors
□Applicable?NotApplicable
8.Others
□Applicable?NotApplicableXIX.NotestoMainItemsontheParentCompany’sFinancialStatement
1.AccountsReceivable
(1)DisclosurebyAging
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Aging
| Aging | EndingBookBalance | BeginningBookBalance |
| Within1year | ||
| Including:Sub-itemsforwithin1year | ||
| Within1year | 170,567,658.48 | 174,600,238.32 |
| Within1yearSubtotal | 170,567,658.48 | 174,600,238.32 |
| 1to2years | ||
| 2to3years | ||
| Over3years | ||
| 3to4years | ||
| 4to5years | ||
| Over5years | ||
| Total | 170,567,658.48 | 174,600,238.32 |
(2)ClassifiedDisclosurebyBadDebtProvisionMethods
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | EndingBalance | BeginningBalance | ||||||||
| BookBalance | BadDebtReserves | BookValue | BookBalance | BadDebtReserves | BookValue | |||||
| Amount | Ratio(%) | Amount | ProvisionRatio(%) | Amount | Ratio(%) | Amount | ProvisionRatio(%) | |||
| ProvisionsforBadDebtReservesonanIndividual-itemBasis | ||||||||||
| Including: | ||||||||||
| ProvisionsforBadDebtReservesonaPortfolioBasis: | 170,567,658.48 | / | 8,013,876.71 | / | 162,553,781.77 | 174,600,238.32 | / | 8,561,015.72 | / | 166,039,222.60 |
| Including: | ||||||||||
| Including:RelatedPartyPortfoliowithintheConsolidationScope | 10,290,124.30 | 6.03 | 10,290,124.30 | 3,379,923.96 | 1.94 | 3,379,923.96 | ||||
| AgingAnalysisPortfolio | 160,277,534.18 | 93.97 | 8,013,876.71 | 5.00 | 152,263,657.47 | 171,220,314.36 | 98.06 | 8,561,015.72 | 5.00 | 162,659,298.64 |
| Total | 170,567,658.48 | / | 8,013,876.71 | / | 162,553,781.77 | 174,600,238.32 | / | 8,561,015.72 | / | 166,039,222.60 |
ProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesonaPortfolioBasis:
?Applicable□NotApplicable
Itemsforprovisionsonaportfoliobasis:AgingAnalysisPortfolio
Unit:YuanCurrency:RMB
| Name | EndingBalance |
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AccountsReceivable
| AccountsReceivable | BadDebtReserves | ProvisionRatio(%) | |
| Within1year | 160,277,534.18 | 8,013,876.71 | 5.00 |
| Total | 160,277,534.18 | 8,013,876.71 | 5.00 |
ExplanationofProvisionsforBadDebtReservesonaPortfolioBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReserves
Explanationofsignificantchangesinthebookbalanceofaccountsreceivablewithchangesinlossreservesduringthecurrentperiod:
□Applicable?NotApplicable
(3)StatusofBadDebtReserves
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Category | EndingBalance | AmountofChangesintheCurrentPeriod | EndingBalance | |||
| Provision | RecoveredorReversed | Writtenoff | OtherChanges | |||
| Baddebtprovisiononanindividualbasis | -- | -- | -- | -- | -- | -- |
| Baddebtprovisiononaportfoliobasis | 8,561,015.72 | 547,139.01 | 8,013,876.71 | |||
| Including:RelatedPartyPortfoliowithintheConsolidationScope | ||||||
| AgingAnalysisPortfolio | 8,561,015.72 | 547,139.01 | 8,013,876.71 | |||
| Total | 8,561,015.72 | 547,139.01 | 8,013,876.71 | |||
Includingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(4)StatusofAccountsReceivableActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantaccountsreceivable
□Applicable?NotApplicableExplanationofwrite-offofaccountsreceivable:
□Applicable?NotApplicable
(5)OverviewofAccountsReceivableandContractAssetsRankingTopFiveinEndingBalancesAggregatedbyDebtors?Applicable□NotApplicable
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Unit:YuanCurrency:RMB
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Company
Name
| CompanyName | EndingBalanceofAccountsReceivable | EndingBalanceofContractAssets | EndingBalanceofAccountsReceivableandContractAssets | ProportionintheTotalEndingBalanceofAccountsReceivableandContractAssets(%) | EndingBalanceofBadDebtReserves |
| First | 43,574,540.00 | 43,574,540.00 | 25.55 | 2,178,727.00 | |
| Second | 34,996,686.63 | 34,996,686.63 | 20.52 | 1,749,834.33 | |
| Third | 15,694,350.00 | 15,694,350.00 | 9.20 | 784,717.50 | |
| Fourth | 14,533,922.17 | 14,533,922.17 | 8.52 | 726,696.11 | |
| Fifth | 10,930,352.50 | 10,930,352.50 | 6.41 | 546,517.63 | |
| Total | 119,729,851.30 | 119,729,851.30 | 70.20 | 5,986,492.57 |
OtherExplanations:
NoneOtherExplanations:
?Applicable□NotApplicable
Attheendoftheperiod,therewerenoaccountsreceivablederecognizedduetothetransferoffinancialassets.Attheendoftheperiod,therewerenobalancesofassetsandliabilitiesformedbythetransferofaccountsreceivableandcontinuedinvolvement.
2.OtherReceivablesPresentationofItems
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance |
| InterestReceivable | ||
| DividendsReceivable | 1,000,000,000.00 | 1,230,000,000.00 |
| OtherReceivables | 665,966,380.53 | 497,988,609.74 |
| Total | 1,665,966,380.53 | 1,727,988,609.74 |
OtherExplanations:
□Applicable?NotApplicableInterestReceivable
(1)ClassificationofInterestReceivable
□Applicable?NotApplicable
(2)SignificantOverdueInterest
□Applicable?NotApplicable
(3)ClassifiedDisclosurebyBadDebtProvisionMethods
□Applicable?NotApplicableProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableExplanationofProvisionsforBadDebtReservesonanIndividual-itemBasis:
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□Applicable?NotApplicableProvisionsforBadDebtReservesonaPortfolioBasis:
□Applicable?NotApplicable
(4)ProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReservesNoneExplanationofsignificantchangesinthebookbalanceofinterestreceivablewithchangesinlossreservesduringthecurrentperiod:
□Applicable?NotApplicable
(5)StatusofBadDebtReserves
□Applicable?NotApplicableIncludingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(6)StatusofInterestReceivableActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantinterestreceivable
□Applicable?NotApplicableWrite-offExplanation:
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicableDividendsReceivable
(7)DividendsReceivable
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items(orInvestedUnits)
| Items(orInvestedUnits) | EndingBalance | BeginningBalance |
| TongliaoMeihua | 450,000,000.00 | 630,000,000.00 |
| XinjiangMeihua | 400,000,000.00 | |
| JilinMeihua | 350,000,000.00 | 200,000,000.00 |
| HongKongMeihua | 200,000,000.00 | |
| Total | 1,000,000,000.00 | 1,230,000,000.00 |
(8)SignificantDividendsReceivablewithanAgingExceeding1year
□Applicable?NotApplicable
(9)ClassifiedDisclosurebyBadDebtProvisionMethods
□Applicable?NotApplicableProvisionsforBadDebtReservesonanIndividual-itemBasis:
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□Applicable?NotApplicableExplanationofProvisionsforBadDebtReservesonanIndividual-itemBasis:
□Applicable?NotApplicableProvisionsforBadDebtReservesonaPortfolioBasis:
□Applicable?NotApplicable
(10)ProvisionsforBadDebtReservesbasedontheGeneralModelofExpectedCreditLosses
□Applicable?NotApplicableBasisforStagingandProvisionRatiosforBadDebtReservesNoneExplanationofsignificantchangesinthebookbalanceofdividendsreceivablewithchangesinlossreservesduringthecurrentperiod
□Applicable?NotApplicable
(11)StatusofBadDebtReserves
□Applicable?NotApplicableIncludingbaddebtswithsignificantamountstoberecoveredorreversedduringtheperiod:
□Applicable?NotApplicableOtherExplanations:
None
(12)StatusofDividendsReceivableActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantdividendsreceivable
□Applicable?NotApplicableWrite-offExplanation:
□Applicable?NotApplicableOtherExplanations:
□Applicable?NotApplicableOtherReceivables
(13)DisclosurebyAging
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Aging
| Aging | EndingBookBalance | BeginningBookBalance |
| Within1year | ||
| Including:Sub-itemsforwithin1year | ||
| Within1year | 666,459,181.92 | 498,225,281.32 |
| Within1yearSubtotal | 666,459,181.92 | 498,225,281.32 |
| 1to2years | 100,000.00 | 592,142.42 |
| 2to3years | 187,214.39 | |
| Over3years | ||
| 3to4years | 200,000.00 | |
| 4to5years | 200,000.00 | -- |
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Over5years
| Over5years | 85,842,687.00 | 85,842,687.00 |
| Total | 666,459,181.92 | 498,225,281.32 |
(14)ClassificationbyNatureofAccounts
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| NatureofAccounts | EndingBookBalance | BeginningBookBalance |
| IntercompanyAccountCurrent | 651,382,152.78 | 480,833,286.11 |
| Deposits | 600,000.00 | 600,000.00 |
| ReceivablesforLandandRealEstate | 85,672,687.00 | 85,672,687.00 |
| Others | 782,060.81 | 1,828,587.91 |
| ExportTaxRefundsreceivable | 14,352,182.72 | 15,925,549.72 |
| Total | 752,789,083.31 | 584,860,110.74 |
(15)ProvisionforBadDebtReserves
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| BadDebtReserves | Phase1 | Phase2 | Phase3 | Total |
| ExpectedCreditLossesovertheNext12Months | ExpectedCreditLossesfortheentireDuration(withoutCreditImpairment) | ExpectedCreditLossesfortheentireDuration(withCreditImpairment) | ||
| BalanceasofJanuary1,2024 | 1,198,814.00 | 85,672,687.00 | 86,871,501.00 | |
| BalanceasofJanuary1,2024duringtheCurrentPeriod | ||||
| --=TransferredtoPhase2 | ||||
| --TransferredtoPhase3 | ||||
| --ReversedtoPhase2 | ||||
| --ReversedtoPhase1 | ||||
| ProvisionfortheCurrentPeriod | ||||
| ReversalfortheCurrentPeriod | 48,798.22 | 48,798.22 | ||
| Write-offfortheCurrentPeriod | ||||
| Write-offfortheCurrentPeriod | ||||
| OtherChanges | ||||
| BalanceasofDecember31,2024 | 1,150,015.78 | 85,672,687.00 | 86,822,702.78 |
BasisforStagingandProvisionRatiosforBadDebtReserves
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NoneExplanationofsignificantchangesinthebookbalanceofotherreceivableswithchangesinlossreservesduringthecurrentperiod:
□Applicable?NotApplicableBasisforamountofprovisionsforbaddebtreservesandtheassessmentofsignificantincreaseincreditriskoffinancialinstruments:
□Applicable?NotApplicable
(16)StatusofBadDebtReserves
□Applicable?NotApplicableIncludingbaddebtreserveswithsignificantamountreversedorrecoveredduringthecurrentperiod:
□Applicable?NotApplicableOtherExplanations:
None
(17)StatusofOtherReceivablesActuallyWrittenOffduringtheCurrentPeriod
□Applicable?NotApplicableIncludingwrite-offofsignificantotherreceivables:
□Applicable?NotApplicableExplanationofwrite-offofotherreceivables:
□Applicable?NotApplicable
(18)OverviewofOtherReceivablesRankingTopFiveinEndingBalancesAggregatedbyDebtor?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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CompanyName
| CompanyName | EndingBalance | ProportioninTotalAmountofEndingBalancesofOtherReceivables(%) | NatureofAccounts | Aging | EndingBalanceofBadDebtReserves |
| JilinMeihuaAminoAcidCo.,Ltd. | 650,732,152.78 | 86.44 | IntercompanyAccountCurrent | Within1year | -- |
| BazhouMetalGlassFurnitureIndustrialPark | 85,672,687.00 | 11.38 | ReceivablesforLandandRealEstate | Over5years | 85,672,687.00 |
| TibetLhasaEconomicandTechnologicalDevelopmentZoneTaxationBureau,StateTaxationAdministration | 14,352,182.72 | 1.91 | ExportTaxRefundsReceivable | Within1year | 717,609.14 |
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BazhouWorkInjuryInsuranceManagementOffice
| BazhouWorkInjuryInsuranceManagementOffice | 687,214.39 | 0.09 | Others | RMB500,000.00duewithinoneyear,andRMB187,214.39duein2to3years. | 81,164.32-- |
| LangfangMeihuaBiotechnologyDevelopmentCo.,Ltd. | 650,000.00 | 0.09 | IntercompanyAccountCurrent | Within1year | -- |
| Total | 752,094,236.89 | 99.91 | / | / | 86,471,460.46 |
(19)PresentedUnderOtherReceivablesDuetoCentralizedFundManagement
□Applicable?NotApplicableOtherExplanations:
?Applicable□NotApplicable
Therewerenootherreceivablesinvolvinggovernmentgrantsattheendoftheperiod.Therewerenootherreceivablesderecognizedduetotransferoffinancialassetsattheendoftheperiod.Therewerenoamountsofassetsandliabilitiesformedduetothetransferofotherreceivablesandcontinuedinvolvement.
3.Long-termEquityInvestments
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | ImpairmentReserves | BookValue | BookBalance | ImpairmentReserves | BookValue | |
| InvestmentinSubsidiaries | 7,637,915,728.14 | -- | 7,637,915,728.14 | 7,637,850,728.14 | -- | 7,637,850,728.14 |
| InvestmentinAssociatesandJointVentures | ||||||
| Total | 7,637,915,728.14 | -- | 7,637,915,728.14 | 7,637,850,728.14 | -- | 7,637,850,728.14 |
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(1)InvestmentinSubsidiaries
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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InvestedUnits
| InvestedUnits | BeginningBalance(BookValue) | Beginningbalanceofimpairmentprovision | Increase/decreaseduringtheperiod | EndingBalance(BookValue) | Endingbalanceofimpairmentprovision | |||
| Additionalinvestment | Investmentreduction | Provisionforimpairmentduringtheperiod | Others | |||||
| TongliaoMeihuaBio-TechCo.,Ltd | 1,955,251,411.24 | -- | -- | -- | 1,955,251,411.24 | |||
| XinjiangMeihuaAminoAcidCo.,Ltd. | 2,521,485,877.51 | -- | -- | -- | 2,521,485,877.51 | |||
| LangfangMeihuaSeasoningCo.,Ltd. | 252,167,723.87 | -- | -- | -- | 252,167,723.87 | |||
| LangfangMeihuaBio-TechnologyDevelopmentCo.,Ltd. | 41,751,138.20 | 31,000,000.00 | 72,751,138.20 | |||||
| LhasaMeihuaBiologicalInvestmentHoldingCo.,Ltd. | 800,000,000.00 | -- | -- | 800,000,000.00 | ||||
| MeihuaGroupInternationalTrading(HongKong)Limited | 6,277,900.00 | -- | -- | 6,277,900.00 | ||||
| Meihua(Shanghai)Bio-TechnologyCo.,Ltd. | 31,000,000.00 | -- | 31,000,000.00 | -- | ||||
| JilinMeihuaAminoAcidCo.,Ltd. | 2,029,666,677.32 | -- | -- | 2,029,666,677.32 | ||||
| ZhuhaiHengqinMeihuaBio-TechnologyCo.,Ltd. | 250,000.00 | 65,000.00 | -- | 315,000.00 | ||||
| Total | 7,637,850,728.14 | 31,065,000.00 | 31,000,000.00 | 7,637,915,728.14 | ||||
(2)InvestmentinAssociatesandJointVentures
□Applicable?NotApplicable
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(1)ImpairmentTestingofLong-termEquityInvestments
□Applicable?NotApplicableOtherExplanations:
None
4.OperatingRevenuesandOperatingCosts
(1)StatusofOperatingRevenuesandOperatingCosts
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
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Items
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | ||
| Revenues | Costs | Revenues | Costs | |
| MainBusiness | 16,274,518,468.77 | 15,698,384,731.99 | 18,901,240,236.28 | 18,372,725,610.35 |
| OtherBusiness | 16,869,353.78 | 16,595,961.15 | 18,250,745.67 | 17,268,512.07 |
| Total | 16,291,387,822.55 | 15,714,980,693.14 | 18,919,490,981.95 | 18,389,994,122.42 |
(2)DecompositionInformationofOperatingRevenuesandOperatingCosts
□Applicable?NotApplicableOtherExplanations:
?Applicable□NotApplicable
1.MainBusiness(byproducts)
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | ||
| Revenues | Costs | Revenues | Costs | |
| FoodFlavorandTextureOptimizationProducts | 5,800,892,800.04 | 5,613,804,836.97 | 7,288,717,376.80 | 7,087,695,867.84 |
| AnimalNutritionAminoAcids | 9,099,073,256.54 | 8,754,982,982.07 | 9,957,628,301.13 | 9,692,616,383.97 |
| HumanMedicalAminoAcids | 397,913,690.47 | 382,619,305.03 | 471,065,908.19 | 460,573,161.60 |
| Others | 976,638,721.72 | 946,977,607.92 | 1,183,828,650.16 | 1,131,840,196.94 |
| Total | 16,274,518,468.77 | 15,698,384,731.99 | 18,901,240,236.28 | 18,372,725,610.35 |
2.MainBusiness(byregions)
| RegionName | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod | ||
| OperatingRevenues | OperatingCosts | OperatingRevenues | OperatingCosts | |
| DomesticSales | 15,986,559,260.56 | 15,491,862,997.82 | 18,678,019,409.87 | 18,274,817,341.61 |
| ExportSales | 287,959,208.21 | 206,521,734.17 | 223,220,826.41 | 97,908,268.74 |
| Total | 16,274,518,468.77 | 15,698,384,731.99 | 18,901,240,236.28 | 18,372,725,610.35 |
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3.RevenuesoftheCompany’sTopFiveCustomers
(3)ExplanationofPerformanceObligations
□Applicable?NotApplicable
(4)ExplanationofAllocationtoRemainingPerformanceObligations
□Applicable?NotApplicable
(5)SignificantContractChangesorSignificantAdjustmentstoTransactionPrices
□Applicable?NotApplicableOtherExplanations:
None
5.InvestmentIncome?Applicable□NotApplicable
Unit:YuanCurrency:RMB
/279
Items
| Items | AmountIncurredduringtheCurrentPeriod | AmountIncurredduringthePreviousPeriod |
| InvestmentIncomefromLong-termEquityInvestmentsAccountedforbytheCostMethod | 1,500,000,000.00 | 1,730,000,000.00 |
| InvestmentIncomefromLong-termEquityInvestmentsAccountedforbytheEquityMethod | ||
| InvestmentIncomefromtheDisposalofLong-termEquityInvestments | ||
| InvestmentIncomefromFinancialAssetsHeldforTradingduringtheHoldingPeriod | -- | 3,796,166.67 |
| DividendIncomefromOtherEquityInstrumentInvestmentsduringtheHoldingPeriod | 2,816,000.00 | 2,816,000.00 |
| DividendIncomefromDebtInvestmentsduringtheHoldingPeriod | ||
| DividendIncomefromotherDebtInvestmentsduringtheHoldingPeriod | 12,623,494.45 | 4,118,595.00 |
| InvestmentIncomefromtheDisposalofFinancialAssetsHeldforTrading | 5,814,273.22 | 2,240,303.28 |
| InvestmentIncomefromtheDisposalofOtherEquityInstrumentInvestments | ||
| InvestmentIncomefromtheDisposalofDebtInvestments | ||
| InvestmentIncomefromtheDisposalofOtherDebtInvestments | ||
| DebtRestructuringGains | ||
| Total | 1,521,253,767.67 | 1,742,971,064.95 |
OtherExplanations:
None
6.Others
□Applicable?NotApplicable
/279
XX.SupplementaryInformation
1.DetailedStatementofNon-recurringProfitsandLossesfortheCurrentPeriod
?Applicable□NotApplicable
Unit:YuanCurrency:RMB
/279
Items
| Items | Amount | Explanation |
| Profitsorlossesfromdisposalofnon-currentassets,includingtheportionoffsetagainstimpairmentprovisionsalreadyaccrued | (35,923,166.36) | |
| Governmentgrantsrecordedintheprofitorlossforthecurrentperiod,excludingthosecloselyrelatedtotheCompany'snormaloperatingactivities,complyingwithnationalpolicies,entitledaccordingtospecifiedstandards,andhavingacontinuousimpactontheCompany'sprofitorloss | 205,965,697.82 | |
| Profitsorlossesarisingfromfairvaluechangesoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprises,aswellasprofitsorlossesarisingfromthedisposaloffinancialassetsandfinancialliabilities,excludingtheeffectivehedgingbusinessrelatedtotheCompany’snormaloperatingactivities | 30,307,317.28 | |
| Fundusagefeeschargedtonon-financialenterprisesandrecordedintheprofitorlossforthecurrentperiod | ||
| Profitsorlossesfromentrustingotherstoinvestormanageassets | ||
| Profitsorlossesfromloansentrustedtoothers | ||
| Assetlossesincurredduetoforcemajeure,suchasnaturaldisasters | ||
| Reversalofimpairmentreservesforreceivablesundergoingindividualimpairmenttesting |
IncomegeneratedwhentheinvestmentcostsbornebytheCompanyinacquisitionofsubsidiaries,associates,andjointventuresarelessthanthefairvalueofidentifiablenetassetsentitledtotheCompanywhentheinvestmentisacquired
| Netprofitsorlossesofsubsidiariesgeneratedfromthebeginningoftheperiodtothedateofconsolidationthroughenterprisemergerunderthesamecontrol |
| Profitsorlossesfromnon-monetaryassetexchanges |
| Profitsorlossesfromdebtrestructuring |
| One-timeexpensesincurredbyenterprisesduetodiscontinuationofrelatedoperatingactivities,suchasemployeeresettlementexpenses,etc. |
| One-timeimpactonprofitorlossforthecurrentperiodduetoadjustmentstotax,accounting,andotherlawsandregulations |
| Stock-basedpaymentexpensesrecognizedone-timeduetocancellationormodificationofequityincentiveplans |
| Profitsorlossesfromchangesinthefairvalueofemployeecompensationpayableaftertheexercisedateforshare-basedpaymentssettledbycash |
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Profitsorlossesfromchangesinthefairvalueofinvestmentpropertiesmeasuredsubsequentlyusingthefairvaluemodel
| Profitsorlossesfromchangesinthefairvalueofinvestmentpropertiesmeasuredsubsequentlyusingthefairvaluemodel | |
| Incomefromtransactionswithsignificantpricemisalignment | |
| ProfitsorlossesfromcontingenciesunrelatedtotheCompany'snormaloperatingactivities | (1,549,545.75) |
| Custodianfeeincomefromentrustedoperations | |
| Othernon-operatingrevenuesandexpendituresnotmentionedabove | -105,868,972.90 |
| Otherprofitorlossitemsmeetingthedefinitionofnon-recurringprofitsandlosses | |
| Less:Incometaximpact | 49,177,930.96 |
| Minorityshareholders’equityimpact(aftertax) | |
| Total | 43,753,399.13 |
ForitemsnotlistedintheExplanatoryAnnouncementforInformationDisclosurebyCompaniesthatIssueSecuritiestothePublicNo.1-Non-recurringProfitsandLossesbutconsideredasnon-recurringprofitsandlosseswithsignificantamounts,aswellasitemsdefinedasrecurringprofitsandlossesintheExplanatoryAnnouncementforInformationDisclosurebyCompaniesthatIssueSecuritiestothePublicNo.1-Non-recurringProfitsandLosses,theCompanyshouldprovidereasonsforsuchclassification.
□Applicable?NotApplicableOtherExplanations
□Applicable?NotApplicable
2.ReturnonEquityandEarningsperShare
?Applicable□NotApplicable
| ProfitsduringtheReportingPeriod | WeightedAverageReturnonEquity(%) | EarningsperShare | |
| BasicEarningsperShare | DilutedEarningsperShare | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 19.04 | 0.94 | 0.94 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductingnon-recurringprofitsandlosses | 18.74 | 0.92 | 0.92 |
3.DifferencesinAccountingDataunderDomesticandForeignAccountingStandards
□Applicable?NotApplicable
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4.Others
□Applicable?NotApplicable
Chairman:WangAijunDateApprovedbytheBoardofDirectorsforSubmission:March17,2025
RevisionInformation
□Applicable?NotApplicable