海大集团:2022年年度报告(英文版)

Guangdong Haid Group Co., Limited
2022 Annual Report

April 2023


Section I. Important Notes, Table of Contents and Definitions

The board of directors (the "Board"), the supervisory committee, the directors,
the supervisors and the senior management of Guangdong Haid Group Co.,
Limited (the "Company") hereby warrant the truthfulness, accuracy and
completeness of the information presented in this report, guarantee that there are
no misrepresentations, misleading statements or material omissions contained in
this annual report, and are individually and collectively responsible for the
authenticity, accuracy and completeness of the information contained in this
report.

Mr. Hua Xue, head of the Company, and Mr. Shaolin Yang, head in charge of
accounting work and head of the accounting department (Accounting Officer),
declare that they warrant the truthfulness, accuracy and completeness of the
financial statements in the annual report.

All directorswere presentin person atthe Board meeting to considerandapprove
this annual report.

1. Periodical Fluctuations of Feed Industry due toAbnormal Weather Changes
The feed industry is mainly served for the downstream animal industry. The
abnormal changes including extreme high orlow temperature, storm, typhoons et
al during the breeding production, and even large-scale outbreaks of diseases
which may lead to fluctuations of the inventory of livestock or aquatic products.
For example, the continuous high temperature weather in this year was followed
by the rise of watertemperature to exceed the appropriate growth temperature of
aquatic products, leading to the decrease of dissolved oxygen saturation in the
water, and the reduced intake of aquatic animals and passively reduced feeding.
Some aquatic products cannot adapt to the rise of temperature or even die,
therefore affecting short-term feed demand and there are adverse effects on the
production and operation of feed enterprises.

Risk control methods include two aspects: (1) The company is currently fully
deploying manufacturers and local markets in major areas in Southern China,
Central China, Eastern China and Northern China and overseas markets in
SoutheastAsia.Theexpansion of regional distribution can effectivelydecrease the
risk of weather anomalies and natural disasters in local areas. (2) Continuously
improving the supports to farmers through the joint empowerment of feed,
seedlings, and animal healthcare, providing scientific breeding plans and
individual services from company’s technical personnel to enhance the risk

resistance and competitiveness of farmers and reduce the adverse effects of
abnormal weather.

2. Risks of company's production and operation due to the outbreak of epidemic
diseases

With the environmental changes and the development of large-scale breeding,
animal epidemic diseases also occur from time to time, forinstance,African swine
fever had broken out across China since August 2018 and PRRSV-mediated pig
diseases, shrimp-relevant EMS epidemic diseases and poultry-relevant “H7N9”
diseases occurred cross country in recent years. The scale of animal production
shrinks because of the outbreak of animal epidemic diseases, following the
reduced demand for feed in the short term. The prevalence of major animal
diseases can also easily affect consumers’purchase intention, and then reduce the
demand of end-consumers, leading to the downturn of the aquaculture and feed
industry, giving rise to adverse effects on the production and operation of feed
enterprises.

Risk control methods include two aspects: (1) The feed products cover the feeds
of pig, chicken, duck, goose, fish, shrimp and other livestock and aquatic feeds.
The variety of products and the well-balanced structure can effectively mitigate
theriskofsinglespeciesdiseasewithstrongcomprehensiverisk-relievecapability.
(2) The company has established the strict epidemic prevention and control
system in the production of feed products, utilizing the disease prevention and
control from the source with technological advantages and professional
capabilities.

3. Risk of Drastic Price Fluctuations of Major Ingredient Materials

The feed ingredients consist of staple agricultural products including corn and
soybeans (soybean meal) et al. In recent years, the domestic and international
markets of agricultural product have been closely connected. There were great
fluctuations in prices of agricultural products due to the change of the size in the
planting area and the harvest amount in these major grain-producing countries,
the purchasing and storage and subsidy policies, the import and export policies,
the political conflicts between countries, the international trade relations, the
fluctuationsinlogisticscapacityandconditionsofshippingandtheexchangerates,
bringing certain impact on the cost of feed and animal industry. With the
strengthening of the international trade of agricultural products, the factors
affecting the prices of agricultural products have become more complicated, and
the price fluctuations therefore increased. Failing to understand the changes in
the trade of feed raw materials in time and promptly implement strategic
management, the company may face the risk of rising procurement costs.


Risk control methods include three aspects: (1) The materials were divided into
different categories including centralized purchasing staple category and local
procurement of regional varieties category. It not only guarantees the advantages
of large-scale raw material procurement, but also makes best use of localization
advantages from rapid response in respect of regional procurement. (2) The raw
material procurementresearchsystemwascontinuouslyinvestedandconstructed.
The members of team are professional and familiar with raw material
information. It can effectively control the procurement risk through real-time
tracking, investigating, and judging the market trend in domestic and foreign
bulk raw material, and manage the position risk of bulk raw materials through
futures hedging, raw materials trade and other tools. (3) The company has strong
research and development (R&D) team composed of nearly 2,000 employees with
extensiveexperienceinresearchonanimalnutritionandfeedformulation.Alarge
amount of fund was invested on research and development each year, focusing on
animal nutrition requirements, feed formulation technology, animal farming and
geneticimprovement,comprehensiveinvestigationonhealthybreedingstrategies,
and other research areas. The formula can be quickly adjusted to guarantee feed
nutrient level and control the costs in copying with material price fluctuations
based on the profound understanding of animal nutritional requirements and the
expertise in making best use of raw materials.

4.RiskofEnvironmentalProtectionLawsandPoliciesontheScaleandStructuralAdjustment inAnimal Industry

In recent years, our government has introduced a series of environmental
protection laws and policies such as the new Environmental Protection Law, the
Regulations on Prevention and Control of Pollution from Large-Scale Livestock
and Poultry Industry, the Plan for Prevention and Treatment of Contaminated
Water, the Guiding Opinions on Adjusting the Layout of Pig Production in the
Southern Water Network Region et al. These anti-pollution regulations stipulate
the pollution prevention in animal industry, and especially limit the production
scale in the regions of key water sources and their surrounding areas. According
to the regulations and policies of the central government, the banned areas and
restricted areas have been highlighted throughout the country, and pig farms in
the prohibited areas are gradually relocated in the southern water-network area.
The implementation of environmental protection policies not only further speeds
up the withdrawal of individual pig farms to reduce the backward production
model with unqualified environmental protection, but also expand the production
capacity of large-scale farm with better breeding structure. In addition, the
establishment of banned areas and restricted areas will enforce the adjustments
of pig production capacity across the country. The adjustments of the scale
composition of pig production and the relocation of pig production area will
certainly have a profound impact on the existing capacity layout, market share,

pricing, and business model of feed industry. The impact of environmental
protection policies on the pig industry and feed industry induces existing
competitive enterprises at the risk of reshuffle.

Risk control measures included four aspects: (1) The company continually
improves its service capability to farmers. In addition to feed products, the
company is also engaged in the industrial fields of animal healthcare, vaccines,
and finance, and connects closely with large-scale farmers. (2) The feed products
of the company cover the field of livestock, poultry, and aquatic animals with
abundant product lines. The producing lines for pig feed, chicken feed, duck feed
and pelleted fish feed can be shared and switched. The company can rapidly shift
the production layout according to the changes in the market through adjusting
the production capacity in the manufacturers. (3) The company adopts multiple
models to speed up the production layout in areas with abundant resources and
permitted environment, and to obtain more market share in new animal farming
areas. (4) The company continues to increase R&D investment, and the key
technologies on microbial fermented feed and antibiotic alternatives have been
effectively applied to foster the progress and development of the industry.

5. Risk of Exchange Rate Fluctuations

The global procurement of feed raw materials has become the norm. The scale of
overseas investment and operations of the company is also rapidly expanded. The
scale of cross-border fund settlement and the stock of overseas assets have grown
substantially, involved in various currency types of different countries. The
currency exchange rate fluctuations are subject to different influence factors. The
exchange rate fluctuations in any currency put certain impact on the settlement
cost and asset value of the regions.

Risk control methods include two aspects: (1) the company strictly controls the
exchange rate risks, carefully selects settlement currencies to achieve relatively
balanced regional fund inflow and outflow through structural arrangements of
financing sources and financing types according to the scale, the model, and
settlement characteristics of business in different regions and countries. (2) The
expansion of two-way fluctuations in RMB exchange rate has become the new
norm.Thecompanyincreasesitsawarenessofforeignexchangeriskandarranges
settlement models according to the procurement and sales strategies and the cycle
characteristics of import and export operations, and flexibly used financial
instruments such as forward foreign exchange settlement and sale, swaps, foreign
exchange options and others to lock in exchange rate, control procurement and
sales costs and the possible risks caused by exchange rate fluctuations.

The statements involving the company's future plans in this report do not

constitute substantial commitment of the company to any investors or related
parties. Investors are kindly advised to aware investment risks.

The proposed profit distribution plan of the Company was considered and passed
by the Board: on the basis of the total number of shares on the date of record
minus the repurchased shares when the plan is implemented in the future, the
Company will distribute cash dividend of RMB 4.50 (tax inclusive) and 0 bonus
share (tax inclusive) for every 10 existing shares held by all shareholders without
capitalization of capital reserve.

In this report, certain total numbers may not be exactly equal to the summation
of their sub-item numbers as a result of roundoff.

This report has been prepared in both Chinese and English. Should there be any
discrepanciesormisunderstandingsbetweenthetwoversions,theChineseversion
shall prevail. The complete published Chinese 2022 Annual Report is available at
the media designated for information disclosure.


Table of Contents


Section I. Important Notes, Table of Contents and Definitions......1

Section II. Company Profile and Key Financial Indicators ......9

Section III. Management Discussion andAnalysis ......15
Section IV. Corporate Governance ......57

Section V. Environmental and Social Responsibility ......90

Section VI. Material Matters......97

Section VII. Share Changes and Shareholder Information......115

Section VIII. Preferred Shares ......122
Section IX. Bonds ......123
Section X. Financial Statements ......124
Documents Available for Reference

1. The financial statements signed and sealed by the head of the Company, the head in charge of
accounting work and the head of the accounting department (Accounting Officer).

2. The original copy of the Independent Auditor’s Report signed and sealed by the CPAs, as well as
sealed by the CPA firm.

3. The originals of all the Company’s announcements and documents which were disclosed during
the Reporting Period.

4. The annual report disclosed on other securities markets.

Definitions

Item Definition

Company, Group, Haid Group Guangdong Haid Group Co., Limited

Board the board of directors of Guangdong Haid Group Co., Limited

Supervisory Committee the supervisory committee of Guangdong Haid Group Co., Limited

General Meeting of Shareholders the general meeting of shareholders of Guangdong Haid Group Co., Limited

Company Law the Company Law of the People’s Republic of China

Securities Law the Securities Law of the People’s Republic of China

Articles ofAssociation theArticles ofAssociation of Guangdong Haid Group Co., Limited

RMB Renminbi

reporting period, the period, the year the period from 1 January 2022 to 31 December 2022

last year, the same period of last year the period from 1 January 2021 to 31 December 2021

the end of the period 31 December 2022

the beginning of the period or the year 1 January 2022

CSRC China Securities Regulatory Commission


Section II. Company Profile and Key Financial Indicators

I. Company profile

Stock name Haid Group Stock code 002311

Previous stock name (if any) N/A

Stock exchanges on which the Shenzhen Stock Exchange

shares are listed

Chinese name of the Company 广东海大集团股份有限公司

Chinese abbreviation of the 海大集团

Company

English name of the Company Guangdong Haid Group Co., Limited

(if any)

English abbreviation of the HAID GROUP

Company (If any)

Legal representative of the Hua Xue

Company

Registered address Room 701, Building 2, Haid Mansion, No. 42, Road 4, Wangbo, Nancun Town, Panyu Dist,

Guangzhou, China

Postal code of registered 511445

address

Past changes of registered The registered address remained unchanged during the reporting period.

address

Office address Room 701, Building 2, Haid Mansion, No. 42, Road 4, Wangbo, Nancun Town, Panyu Dist,

Guangzhou, China

Postal code of office address 511445

Website of the Company www.haid.com.cn

Email address zqbgs@haid.com.cn

II. Contact persons and contact methods

Board Secretary SecuritiesAffairs Representative

Name Zhijian Huang Jiewen Lu and Huafang Yang

Room 701, Building 2, Haid Mansion, No. Room 701, Building 2, Haid Mansion, No.
Correspondence address 42, Road 4, Wangbo, Nancun Town, Panyu 42, Road 4, Wangbo, Nancun Town, Panyu
Dist, Guangzhou, China Dist, Guangzhou, China

Telephone 8620-39388960 8620-39388960

Facsimile 8620-39388958 8620-39388958

Email address zqbgs@haid.com.cn zqbgs@haid.com.cn

III. Information disclosure and places for inspection

Stock exchange website where theAnnual Report is Securities Times, China Securities Journal, Securities Daily, Shanghai

disclosed Securities News

Media and website where theAnnual Report is www.cninfo.com.cn

disclosed


Places for inspection of the Company’s Securities Department of the Company

Annual Report
IV. Change in registration

Unified social credit code No change

Change of principal activities since its No change

listing (if any)

Change of the controlling shareholder (if No change

any)
V. Other relevant information
CPAfirm engaged by the Company

Name of the CPAfirm Grant Thornton China (Special General Partnership)

CPAfirm’s address 5th Floor, Scitech Palace 22 Jianguomen Wai Avenue, Chaoyang District, Beijing

Name of the signing certified Wenyuan Guan and Shuxia Zhang

public accountants

Sponsors engaged by the Company to continuously perform its supervisory function during the reporting period
Applicable □ Not applicable

Name Office address Representative Period of supervision

The statutory period of

supervision for the listed

China Merchants Securities Co., 111 Fuhua First Road, Futian Ziqiang Kang and Xiaoliang company was fromApril 2020
Ltd. Street, Futian District, Shen to December 2021, and the

Shenzhen period of supervision for the
raised funds was from January
2022 to July 2022

GF Securities Tower, 26 The period of supervision for
GF Securities Co., Ltd. Machang Road, Tianhe District, Jian Liu and Yuqing Zhang the raised funds is from July
Guangzhou 2022

FinancialAdvisors engagedbythe Companyto continuouslyperformits supervisoryfunction during the reporting
period
□Applicable  Not applicable

VI. Major accounting data and financial indicators

Retrospective adjustment to or restatement of the accounting data for prior years by the Company

 Yes □ No

Reasons for retrospective adjustment or restatement

Change of accounting policy

2022 2021 Increase/d 2020

ecrease


for the

year as

compared

to the

prior year

Before Restated Restated Before Restated

Operating income 104,715,417,485. 85,998,559,748.7 86,091,961,539.1 21.63% 60,323,862,405.9 60,323,862,405.9
(RMB) 92 8 3 4 4

Net profit for the
year attributable to

shareholders of the 2,954,142,403.34 1,596,046,173.08 1,636,237,735.85 80.54% 2,522,730,419.35 2,522,730,419.35
parent company
(RMB)
Net profit for the
year attributable to
shareholders of the

parent company 2,880,122,890.31 1,519,412,737.99 1,559,604,300.76 84.67% 2,459,587,964.11 2,459,587,964.11
after deducting the
non-recurring gain
or loss (RMB)
Net cash flows from

operating activities 6,817,894,250.91 3,137,948,250.69 3,137,948,250.69 117.27% 485,259,232.03 485,259,232.03
(RMB)
Basic earnings per

share (RMB per 1.79 0.96 0.98 82.65% 1.60 1.60
share)
Diluted earnings per

share (RMB per 1.79 0.96 0.98 82.65% 1.60 1.60
share)
Rate of return on

equity on weighted 18.46% 11.46% 11.74% 6.72% 23.87% 23.87%
average basis

Increase/d

ecrease

as at the

end of

As at the As at the end of 2021 the year As at the end of 2020

end of 2022 compared

to the end

of

the prior

year

Before Restated Restated Before Restated

Total assets (RMB) 44,237,781,732.3 35,648,579,800.0 35,695,097,401.9 23.93% 27,526,958,371.1 27,526,958,371.1
1 9 6 9 9

Total equity

attributable to 17,824,906,815.8 14,461,135,509.3 14,501,327,072.0 13,972,788,864.4 13,972,788,864.4
shareholders of the 7 2 9 22.92% 1 1
parent company
(RMB)

Reasons for change of accounting policy and correction of accounting error

In December 2021, the Ministry of Finance issued the Interpretation No. 15 for the Accounting Standards for

Business Enterprises (《企业会计准则解释第 15 号》) (CK [2021] No. 35) (hereinafter referred to as

“Interpretation No. 15”), which stipulates that where an enterprise sells products or by-products produced before

a fixed asset is ready for its intended use or in the course of research and development (hereinafter collectively

referred to as “Trial Sales”), it shall adopt the accounting treatments as stated in the Accounting Standard No. 14

for Business Enterprises—Revenue (《企业会计准则第 14 号——收入》) and the Accounting Standard No. 1

for Business Enterprises—Inventories (《企业会计准则第 1 号——存货》). These provisions are effective as

of 1 January 2022. The Company has made retrospective adjustments for the impact of the accounting treatments

for the aforementioned trial sales. For further information, see “III 38. Significant Changes inAccounting Policies


andAccounting Estimates” in “Section X. Financial Statements”.

Whether the lower of the netprofit for the year attributable to shareholders of the parent company before and after
deductingthenon-recurringgainorlosswasnegativeforthelastthreeaccountingyears,andthelatestindependent
auditor’s report indicated that there was uncertainty about the Company’s ability to continue as a going concern
□ Yes  No

Whether the lower of the netprofit for the year attributable to shareholders of the parent company before and after
deducting the non-recurring gain or loss was negative

□ Yes  No

VII. Differences in accounting data under domestic and overseas accounting standards

1.Differencesbetweenthenetprofitandnetassetsdisclosedinaccordancewithinternationalaccountingstandards
and China accounting standards in the financial report

□Applicable  Not applicable
Therewasnodifferencebetweenthenetprofitandnetassetsdisclosedinaccordancewithinternationalaccounting
standards and China accounting standards in the financial report during the reporting period.

2. Differences between the net profit and net assets disclosed in accordance with overseas accounting standards
and China accounting standards in the financial report

□Applicable  Not applicable

There was no difference between the net profit and net assets disclosed in accordance with overseas accounting
standards and China accounting standards in the financial report during the reporting period.

VIII. Key Financial Indicators by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Operating income 19,953,219,403.77 26,372,292,309.49 32,629,430,328.87 25,760,475,443.79

Net profit for the year

attributable to shareholders 200,704,938.91 717,825,968.76 1,183,217,063.14 852,394,432.53
of the parent company

Net profit for the year

attributable to shareholders

of the parent company after 184,262,785.31 720,846,597.66 1,175,028,164.93 799,985,342.41
deducting the non-recurring

gain or loss

Net cash flows from -1,046,616,499.85 3,425,171,993.80 3,859,876,073.32 579,462,683.64
operating activities

Whether the above indicators or their aggregated amounts have any material difference with the respective
amounts as disclosed in the quarterly report or interim report

□ Yes  No

IX. Items and Amounts of Non-recurring Gains or Losses

Applicable □ Not applicable
Unit: RMB

Item Amount for 2022 Amount for 2021 Amount for 2020 Explanation

Gain or loss on disposal of non- -45,840,354.94 -21,381,178.37 -8,506,037.63

current assets

Government grants charged to

current profit or loss (excluding

government grants consistently

given in the Company’s ordinary 125,600,697.83 91,417,497.06 123,628,058.53

course of business at fixed quotas

or amounts as per government’s

policies or standards)

Investment costs for acquisition of

subsidiaries, associates and joint

venture less than gains from the fair 812,610.97 40,510.51 1,749,131.53

value of identifiable net assets of

the investees

Except for the effective hedging

activities related to the Company's

ordinary activities, profit or loss

arising from changes in fair value

of financial assets held for trading

and financial liabilities held for 39,455,335.15 292.58

trading, and investment income

from disposal of financial assets

held for trading, financial liabilities

held for trading, and financial assets

available for sale

Reversal of provision for bad and

doubtful debt where accounts 6,167,665.26 11,769,732.86 3,118,886.26

receivable are individually tested

for impairment

Profits or losses from external 530,942.74 18,750.00

entrusted loans

Other non-operating incomes and -34,643,762.69 12,478,800.92 -43,325,417.81

expenses, except for the above

Other gain or loss satisfied the

definition of non-recurring gain or 5,936,636.84 3,713,581.31

loss

Less: impact of Income tax 17,625,340.80 15,798,527.34 9,094,660.10

Less: impact of non-controlling 6,374,917.33 5,606,981.86 4,446,548.12

interests (net of tax)

Total 74,019,513.03 76,633,435.09 63,142,455.24 --

Particulars about other gain or loss that satisfied the definition of non-recurring gain or loss

□Applicable  Not applicable

The Company had no other gain or loss that satisfied the definition of non-recurring gain or loss.

Notes for the Company’s non-recurring gain or loss items as illustrated in the Explanatory Announcement on
Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-recurring Gain or Loss
(《公开发行证券的公司信息披露解释性公告第 1 号——非经常性损益》) defined as its recurring gain or
loss items
□Applicable  Not applicable


No non-recurring gain or loss items as illustrated in the Explanatory Announcement on Information Disclosure
for Companies Offering Their Securities to the Public No.1 - Non-recurring Gain or Loss (《公开发行证券的公
司信息披露解释性公告第 1 号——非经常性损益》) were defined bythe Companyas its recurring gain or loss
items during the reporting period.

Section III. Management Discussion andAnalysis

I. Industry Situation during the reporting period

1. Basic situation and development stage of the industry

The breeding industry is related to the national economy and citizen livelihood. It is the pillar industry of the
agricultural and rural economy, the strategic industry that ensures food safety and quality of life for citizen, and
the key industry to comprehensively promote rural revitalization and accelerate agricultural and rural
modernization.As the core of animal husbandry, the breeding industry plays a role in linking the planting industry
and the food industry. With the promotion of consumption upgrading, more strict environmental protection, green
and high-quality and technological innovation, the trend of large-scale, intensive, and intelligent development of
livestock and poultry breeding has accelerated, and the agglomeration effect of technology, talent and other factor
resources has further been highlighted. At the same time, with the deepening of breeding scale-up and the
improvement of technology, as well as the improvement of the demand for food safety, green and quality, the
importance of upstream businesses around breeding industry including feed, seedling, animal healthcare et al are
becoming increasingly prominent. The competition in the industry is accelerating, the integration continues to
accelerate, and the degree of centralization is increasing.

2. The situation of the industry in 2022

In 2022, the feed industry and breeding industry experienced one bottoming pick-up process. In the first half of
the year, there was significant price rise of raw materials, leading to an increase production costs in breeding and
feed industry. At the same time, the weak consumption intensified the losses of breeding industry, forming the
situation of squeezing each other among the upstream, midstream, and downstream of feed industry. In the second
half of the year, breeding stock stopped cutting capacity , and the prices of products have started to rise, and the
profit of breeding industry improved to varying degrees, and the financial pressure of farmers has decreased. The
confidence in farmers have recovered with the increasing breeding stock and the enthusiasm for feeding. Both the
breeding industry and the feed industry have gradually recovered due to significantly less suppression of the
demand and the prices for feed products. However, due to the steep decline in consumer demand during the Spring
Festival, the circulation of farming products was broken, disrupting the pace of farmers'fish production,especially
for aquaculture which was supposed to be the peak period of fish production before the Spring Festival, and the
overall storage volume was relatively high.

More details as followings,

1. In terms of raw materials for bulk agricultural products, the prices fluctuated sharply due to the international
situation, abnormal weather, and other factors, resulting in overall high-cost performance. According to the data
from the Ministry of Agriculture and Rural Affairs, the annual average domestic price of corn is about 2,900
yuan/ton, maintaining the historical high. The annual domestic average price of wheat exceeds 3,300 yuan/ton,
which is the highest in the past three years. The price of domestic soybean meal has experienced twice rapid
increases throughout the year, rising from the peak of 3,700 yuan/ton at the beginning of the year to over 5,500
yuan/ton. The prices of rice, fish meal and other meal types increased in varying degrees. It was challenged to
inform in time and effectively to downstream farming industry under circumstance of rapid, significant, and

widespread price increases in raw materials.

2. In terms of breeding industry: ① the profitability of poultry industry dropped in the first half of the year and
was recovered in the second half of the year. The African swine fever virus resulted in the shortage of pig
production, the poultry industry increased sharply driven by the substitution effect of poultry meat and price
dividend. From the second half of 2020 to the first half of 2022, there had been a long period of loss in the poultry
industry owing to the less impact of African swine fever virus, the high cost of poultry farming along with weak
end-consumption of poultry, as a result, and the production capacity was decreased in all links. In the second half
of the year, as production capacity decreased and end-consumption increased, the business of poultry farming
chain became profitable, and the cash-flow of farmers was repaired. However, due to high prices of seedling and
feed, and transportation concerns of policy, farmers were initially cautious about increasing their livestock stock.
The pace of poultry breeding and restocking is gradually accelerating with the increasing of the supply of poultry
seedlings in the later stage, as well as the enhancement of logistics certainty and other favorable factors. ② the
pig production had further recovered, and its price had fluctuated sharply. Throughout the year of 2022, 699.95
million pigs were sold, an increase of 28.67 million or 4.3% compared to the previous year. The annual pork
production was 55.41 million tons, an increase of 2.46 million tons or 4.6% compared to the previous year.At the
end of the year, there were 452.56 million pigs, an increase of 0.7% year-on-year.Among them, 43.9 million sows
can be bred, an increase of 1.4% year-on-year. The price of live pigs dropped first, and then went up from 12.29
yuan/kg in March to 27.09 yuan/kg in October with an average profit of over a thousand yuan per head, and
quickly back to 20.01 yuan/kg at the end of the year. Although the market fluctuates sharply, farmers still kept
good profit throughout the year owing to cost advantages, stable business, and high efficiency of production. ③
the trend of special aquaculture transformation in the aquaculture industry was promising, and the development
of aquatic products in household consumption went well. The consumption upgrading and rising costs have led to
the transformation from low gross profit species such as the four domestic fishes to special aquatic products such
as snakehead, California perch, white-leg shrimp and monodon shrimp. The breeding model has also been
explored and developed in the direction of specialization and high efficiency. Throughout the year, the prices of
grass carp, carp, crucian carp, and tilapia were low, and the enthusiasm of farmers dropped to the bottom. The
cultivation of grass carp and tilapia in Guangdong decreased by more than 30%. In terms of special aquaculture
products, the demand for most species such as grouper and yellow catfish was sluggish throughout the year due
to its highly depending on catering channels and circulation. Special aquatic products for household consumption,
such as South American white shrimp, snakehead, crayfish, etc., had high enthusiasm among farmers and
increased breeding capacity. However, the demand of fish at the end of the year suddenly decreased, resulting in
the short-term pressure of low price due to excessive storage, slowing down the overall pace of aquaculture. Until
later, when the fish consumption returned to normal, especially with the rapid rising demand of special fish, the
prices came back the norm.

3. The feed industry had also experienced a bottoming pick-up process, many small and medium-sized feed
enterprises faced further tightened cash-flow, worse debt ratio, and the catalyzing liquidation of production
capacity. In the firsthalf of the year, the rapid increasinginrawmaterialcosts, huge losses in thebreedingindustry,
and the decreasing in market capacity led to exceptionally fierce industry competition. In the second half of the
year, the pressure has been reduced with the recovered cash-flow in the breeding industry, but small and medium-
sized feed manufacturers still faced enormous pressure. The domestic feed production increased slightly year-on-
year throughout 2022. According to the China Feed Industry Association, the total industrial feed production in
China was 302.234 million tons, a year-on-year increase of 3.7%, the significant decrease in growth compared to
2021. Among them, the total feed production in the first half of 2022 decreased by 4.3% year-on-year, with the

increase mainly in the second half of the year. Due to continuous losses and financial problem in the first half of
the year in the livestock and poultry industry, farmers behaved more concerned about external factors such as feed
prices and sell on credit quotas. In the face of the rapidlydeteriorating external environment, most feed enterprises
had reduced profitability to varying degrees, aiming to maintain market share and slow down the increase of feed
products. In the first half of the year, the weighted average price of national formula feed products increased by
6.9% year-on-year, far lower than the increase in main raw materials such as corn, wheat, and soybean meal. In
the second half of the year, with the recovery of profits in the aquaculture sector and the repair of cash-flow, the
profits of feed enterprises showed signs of improvement. Until November 2022, the weighted average price of
formula feed nationwide has increased by 13% year-on-year.

II. Main businesses of the company during the reporting period

The company laid out the industrial chain with the aim of providing overall services to animal farming. It has
formed a relatively complete aquatic product industrial chain, and the livestock and poultry industrial chain has
also graduallybeen constructed.The main products include high-qualityanimal seedlings, feed, animal healthcare
and pig breeding.The businessoperation has covered all business links such as R & D,designing, producing, sales
and service of various products. Specifically, the company's products include feeds for chickens, ducks, geese,
pigs, fish, shrimps, and crabs, breeding varieties such as pigs, shrimps, fish fry and chickens, as well as biological
products, veterinary medicine, vaccines, and other products required for producing livestock, poultry, and
aquaculture.
1. Main business and products

(1) The business of feed seedling and animal healthcare were interacted to form Gold Tringle

Feed business is the core foundation of the company. Based on fully understanding the needs of farmers, the
company has developed aquatic seedlings and animal healthcare products as supplements to facilitate the growth
of the feed business over ten years relentless efforts.After more than 20 years of development, the company's feed
business has accumulated a wide range of customer resources. Through providing customers with high-quality
valuable seedlings and cost-effective feed products in the market, relying on breeding services to drive the
development of vaccines, veterinary medicines, biological products and other animal healthcare products, the
company can better support customers to achieve breeding success through the full set of services, and help
customers realize that healthy farming at the same time, resulting in better controlling the breeding cost and
obtaining the competitive advantage in respect of end products.

(2) the patient development of breeding industry under the premise of stability

Based on the healthy development of feed, seedling and animal healthcare business, the company has formed the
core competitiveness in breeding industry, therefore in recent years, the companyhas begun the cultivate breeding
and food processing business. In terms of livestock and poultry, the company mainly focuses on pig breeding, and
promotes team capacities in poultry section. In terms of aquaculture, the company has started the cultivation and
processing of special aquatic products such as raw fish and shrimp by using its own high-quality seedlings, feed
and animal protection products. With the company's investment in aquatic product research and development and
the presentation of achievements, the companywill graduallyexpand the cultivation of other high-quality fish and
shrimp products.

2. Major business model

The company started its development from the feed business. Due to the abundant customer resources, based on
deeply understanding and excavating the needs of customers, the company continuously enriched and provided
customers with products and services. From feed to seedling breeding, veterinary medicine and vaccine product
R & D and manufacturing with higher technical and economic added value, the production and marketing scale
of high value-added products gradually expanded, and the proportion of income structure also increased year by
year. In recent years, through the extension of the industrial chain, the company has begun to gradually go further
into the industrial links such as breeding and food processing.The business model has been orderlydeveloped and
extended with various industrial sectors supporting and developing each other.

(1) Feeds, seedlings and animal healthcare products business

With the increasing scale of feed business, the business management is mainly carried out with the business model
of centralized procurementof raw materials, distribution of production layout, sales of products accompanied with
technical services. The adoption of the centralized procurement model composed of group plus regional center is
combined with hedging and other methods for agricultural products and other bulk raw materials to achieve better
procurement cost advantages and risk control. In terms of production, owing to being closer to the market,
convenient in logistics and rich in resources, the company currently has feed factories distributed in nearly 100
cities in China and Southeast Asia. Distribution together with direct sales is the company's main sales model.
Focusing on localized marketing, the company has fully established distribution channels to efficiently solve
farmers' capital and transportation needs. Through service stations established in main production areas, the
technical service teams directly visit farmers to provide professional services for farming and have achieved
functional complementation and collaboration with sales organization and management teams in terms of sales
and service as well as channel and farmers. High-quality animal seedlings, biological Products, veterinary drugs
and vaccines become indispensable and constitute a package of integrated products and tools to provide services
for farmers.

The business models for seedlings and animal healthcare products reflect the distinctive features of research and
development with technology as the guide, differentiated products as the carrier, and technical support as the main
promotion strategy. Seedlings and animal healthcare products demand a long period of investment in research and
development. Technology accumulation needs better predictability and market insight, and strong originality of
products. To provide better service support, it is necessary to invest in long term and to build service teams with
advanced technology, knowledge, and experience. Therefore, a multi-level R&D system has been selected in the
business management model, supplemented by a production and process base with a higher starting point for
investment and more aggressive marketing strategy.

(2)Animal breeding business mode

The company's pig farming segment adopts both the "self-breeding plus farming community" model and
"company plus family farm" model. The "self-breeding plus farming community" model means that seedlings are
introducedandbredtocreateafarmingsystemofgrandparent-parent-commercialpig,underwhichreproduction
is separated from breeding to ensure that the farming process is safe and controllable. The "company plus family
farms" model means that the company provides family farmers with products for farming including seedlings,
feeds, and vaccines, and provides major technical supports for farming, in turn the farmers are responsible for
animal raising and transfer the end- products back to the company for sales.


The aquatic animal farming and processing business has just started, and the primary aquatic products are fishes,
prawns and other specialty products. With its strengths in high-quality seedlings, feeds, animal healthcare and
technical advantages, the company carries out standardized and industrialized aquaculture, supplying sustainable,
healthy, traceable aquatic products (processed products) to large catering enterprises and fresh food platforms.
The company has set up professional functional departments including research institute, procurement center,
financialcenter, operationand developmentcenter, marketing center, process and information managementcenter,
human resource center and Haid College at its headquarters, and set up multiple regional/business divisions
according to regions or business categories. Each professional center aims at acquiring technical and management
leadership in its field and provides technical and management standards as well as integrated and professional
management and service support for large regions/business divisions and various branches and subsidiaries. All
regional/business divisions build management platforms, give full play to four in one collaboration mechanism of
R&D, procurement, production and management, strengthen the ability to swiftly respond to the market, fully
explore market potential, and enhance refined management efficiency of all business sectors.

III. Analysis of Core Competitiveness

The products and services are centered on the needs of the animal production industry. Its core competitiveness is
represented by the capability of creating values for customers while carrying out the mission of changing rural
China.The comprehensive performance includes the rich and complete product configuration and industrial chain
layout, outstanding single product power, leading R & D ability, comprehensive breeding technology service
ability, fine management ability and perfect talent training and incentive growth system.

1. Diverse and complete product configurations with strong anti-risk capacity to provide
farmers with complete products and solutions covering the whole production process

The company possesses a relatively abundant and complete product configuration after years of technical
investment, the transformation of R & D achievements, product accumulation and production layout around the
breedingchain,basicallycoveringtheneedsofthewholeprocessofbreedingfromfeed,functionalfeed,seedlings,
medicines, vaccines and biological products, and is still developing.Among feed products, the company is one of
the few domestic enterprises that can produce and distribute fish, shrimp, pig, table poultry, egg poultry feed
products at the same time. Its product line is complete with all kinds of highly competitive products and a high
market share in key markets. Product configuration capability requires strong customer demand insight ability, R
& D organization ability, achievement transformation ability, production base investment and construction ability,
processing organization ability, marketing promotion ability and technical service ability.

The technical content of various feed varieties is different, the gross profit rate, the market characteristics and
operation risks are also different. The company's product structure combination enables the company a higher
gross profit than the general level of the industry, and better controls the market operation risks from animal
diseases and imbalance between supply and demand, hence, the sales revenue of feed products of the company is
stable and maintains a rapid growth rate far higher than the growth rate of the industry.

Over the years, the companyhas orderlyarranged high-qualityaquatic animalseedlings, aquatic animalprotection
products, livestock and poultry vaccines, veterinary drugs, livestock and poultry animal protection products, pig
breeding, aquatic animal farming and other businesses. The core technology in the industrial chain have gradually
obtained the advantages of technology, industrial layout and industrial synergy, cultivating more new business

growth and profit growth points for the company, and further amplifying the multiplier effect of the industrial
chain and laying good foundation for building comparative competitive advantage.

2. Distinct and excellent product power is the most important competitive advantage of the
company

All series of products of the company are committed to building product power significantly ahead of competitors
and put great efforts to strengthen the explicit expression of product power. High-quality products with high
pricing have obvious advantages of ultimately better animal survival rate, growth effect and growth efficiency,
and the brand effect is prominent. Based on then leading production efficiency, the pricing of terminal products is
close to the pricing of competitors' products, pursuing outstanding product cost performance. With the support of
farmers, the overall benefits of the company are significantly higher than those of similar products. In the case of
the declining aquaculture benefits， the whole industry is at a loss, however, our customers only loss less or even
no loss.

The embodiment of product power needs the support of professional abilities within the company including the
R&D ability of animal nutrition and raw material utilization, the formula technology ability of products, the value
procurement ability of raw materials, efficient internal operation ability and other professional abilities
indispensable, for example, the support of value purchasing capacity. The company's procurement team has
outstandingprofessionalcapacity.Theteamis youngandspecialized.Thedivisionoflaboriscarriedoutaccording
to the classification of raw materials. The industry perspective is broad, and the amount of information collection
and analysis is large. It can track, study and judge the market trend of large raw materials at home and abroad in
real- time, and use futures tools to hedge bulk raw materials, and effectively control the price risk and financial
risk of procurement. The team finds out many purchasing opportunities of raw materials with their outstanding
purchasing capacity, making the cost advantage of feed products and raw material trade possible. The company is
the first enterprise in the industry to successfully set up centralized procurement, with obvious advantages in scale
procurement. Due to its rich experience in the application of spot, futures, options and other procurement tools,
the application method is also relatively flexible. Long term value procurement and risk position management are
also conducive to the company's acquisition of procurement cost advantages.

Another part is the company's efficient operation ability. By promoting the implementation of management
software such as SAP, EPS and business sharing system, the company has a strong information system, and its
internal operation is process oriented, standardized and data based. The function of digitization is to find out
efficient and energy-saving operation methods by comparing the big data of each subsidiary company. The
function of process and standardization is to greatly improve the internal replicability. The middle office
management mechanism enables the production, R&D, procurement and manpower to respond to the market
quickly and match the needs of the market and customers in a more flexible, fast and efficient way. Efficient
operation capability has become an important support for effectively organizing the professional production of
various products.

3. Technology R&D is the professional support of product creation, the foundation and
driving force of the company's development, and the core advantage of the company

At the beginning of its establishment, the company established the research center to build an industry-leading
R&D system of the whole industry chain including breeding, nutrition, health, breeding and food. With the
increasing of investment in application technology, the company has focused on strengthening the technical

platform construction of each business module in the industrial chain, forming a three-level R&D system from
platformtechnologyresearch to application technologydevelopment to systemsolution application.The company
promotes the rapid transformation and application demonstration of scientific and technological achievements
through the effective connection of the three-level R&D system and the operation mechanism of "Research
Institute plus subsidiary company". The company carries out research on basic, forward-looking and key common
problems in seven R&D directions: animal genetics and breeding, animal nutrition and feed, animal medicine and
biopharmaceutical, microbial engineering, biochemical industry, protein engineering and healthy breeding,
constantlyimproves the three-levelR&D system, and comprehensivelyand effectively supports, drives and serves
the needs of the rapid development of the whole industrial chain of the group.

The company has rich technical research reserves, has the R&D team of more than 3,300 people, and put huge
investment in R&D every year. The R&D personnel include talents from animal nutrition, veterinary, breeding,
breeding mode, bioengineering, biochemistry, machinery and other disciplines. The transformation speed of R&D
results is fast, the investment supporting strategy can be implemented clearly and quickly, and the product
allocation ability of the company is strong.

For example, for feed formula technology, through more than 20 years of continuous research and development,
the companyhas established a huge animalnutrition demand database and stored a varietyof raw materialformula
technology. Every year, thousands of groups of comparative experimental results are added to the animal core
nutrition demand and raw material utilization database, to transform the technology into productivity. Therefore,
the company has strong ability to organize and continuously optimize the product formula and strong adaptability.
It can quickly adjust the formula when the price of raw materials fluctuates, so as to obtain cost competitive
advantage.

The company's technical service marketing team, who knows the technology and is familiar with the products,
can go into pond and farm to understand the breeding situation in real- time. Therefore, the company has detailed
data sources for end-consumption habits, feed breeding effect, disease prevention, breeding mode and breeding
demand,canaccuratelyfulfilltheneedsoffarmersandputforwardcleartechnicalrequirementsforproductdesign,
Support the company's technical resources to fully focus on the core needs of customers.

By providing farmers with complete breeding services such as seedling, breeding technology, disease prevention,
breeding mode, health and environmental protection, it provides a strong support for the development of the
company's core business products of seedling, feed and animal protection. At the same time, the development of
business provides a deeper foundation for R&D and technological innovation and lays a more solid foundation for
the further development of the industry.

4. The comprehensive breeding technology service system is an important starting point for
the company to coordinate the product chain, create value for customers, continuously obtain
new customers and improve customer viscosity

In 2006, the company took the lead in providing comprehensive technical services to farmers in the industry and
established the company as a service-oriented enterprise and an enterprise providing overall breeding services to
farmers.Thecompanyprovidesfarmerswithproductsandtechnicalservicesupportinthewholebreedingprocess,
such as seedling stocking mode - environmental control - epidemic prevention and control - feed - market
information -financialsupport, to ensure thatfarmers canuse the mostadvancedbreeding technologyto guarantee
the success and profitability of farmers. The company has more than 9000 experienced and passionate technical

service teams in the industry; And accumulate a variety of advanced breeding modes in combination with local
characteristics; There are hundreds of highly efficient service stations in intensive breeding areas across the
country, which can provide technical services for tens of thousands of farmers at the same time. The company's
relatively complete service system in the industry can give full play to the advantages of product power and
provide the whole process technical service of breeding, which can effectively enlarge the income of customers
and increase the loyalty of customers.

The company's farming technicalservice started from aquaculture service.After more than ten years of talentteam
and platform construction, the process and concept of aquaculture technical service system have penetrated into
all links of products, technology, R & D, market and operation, driving the development of the company's aquatic
feed and animal protection business, highlighting the effect, and the process and idea have been gradually
promoted to poultry breeding and pig breeding, In recent years, the company has achieved remarkable results in
promoting the development of livestock and poultry business by setting up livestock and poultry service stations.
Comprehensive breeding technology service has become an important brand label of the company and an
important starting point for the company to create value for customers, obtain and keep customers.

5. Continue to build an excellent operation and management team, fine management ability
and promote the sustainable development of the company

Thecompanyhas the teamwith consistentfaith, diligentand professionalmanagement. Most oftheteammembers
graduated from agricultural colleges and universities and have strong professional background. The management
has the deep and comprehensive understanding of the feed industryand has accumulated rich practical experience.
They have a grand and unified vision and goal, strong industry insight, leadership and execution, can adapt to the
rapid change of feed industry and the company's higher and higher management requirements from their
educational background, knowledge structure industry experience and age.

In recent years, the industry is in an era of drastic changes. Great changes have taken place in the development of
theindustry,thescaleoffarmersandtheneedsofcustomers.EmergingindustriessuchasruralfinanceandInternet
plus also continue to impactthe industry, promote the reformand innovation of the industry, and create a corporate
mechanism and culture that can quickly respond to changes, that is, the collective learning ability that enables the
companyto continuouslycreate value for customers, which is the foundation of the companyto keep a sustainable
competitive advantage.

The company has developed from aquatic premix to various aquatic compound feeds such as freshwater fish,
marine fish and shrimp, from the core advantages of aquatic feed to the advantages of livestock and poultry feed,
fromsimplefeedmanagementtocomprehensiveservicecapabilitiessuchasprovidingbreeding,animalprotection
and breeding technical services for farmers, and has experienced many expansion from South China to central
China, East China, North China, SoutheastAsia and SouthAmerica, The process of becoming stronger and bigger
andleadingtheindustrydependsonthecollectivelearningabilityofthecompany'smanagementandallemployees.
This ability and culture keep the company in learning progress and growing in learning.

6.The perfect talent training system and effective incentive mechanism have laid the
foundation for the sustainable and stable development of the company

The companycontinues to promote the establishment of an organizational atmosphere for talent training. Through
Haida college and the human resources center, the company has built a three-way training system covering the

whole career of employees, the whole business of the company and the whole post of business, built a learning
ecosystem combining universal education and elite training, matched with standardized skill training at all levels,
and realized a standardized rapid endogenous talent training and output mechanism. With the continuous
development of the company's business and the deep extension of the industrial layout, a number of young,
enthusiastic,energetic youngcadreswithnewideasandneweralabelshavebecomethemainstayofthecompany's
middle-level management and core technical backbone. Through the establishment of school enterprise
cooperation and theintegration of industryand education,the companyattracts a large number of excellentcollege
students to join the company every year, and establishs a reserve talent team to support the sustainable
development of the company. Through the establishment of China Modern Fishery Vocational Education Group
and the establishment of Rural Revitalization college, a large number of new farmers are attracted to participate
in the construction of technical and industrial talents. The establishment of internal and external talent system has
realized the talent system pattern of internal talent training and external industry empowerment and driven the
overall progress of the industry.

Since its listing, the company has launched multi-stage equity incentive plan and employee stock ownership plan
for core managers and technical members at different levels, established a unified incentive mechanism of long-
term and short-term incentives and constraints consistent with the interests of all shareholders, and ensured the
implementation of the company's development strategy and business objectives by setting performance objectives
and incentives, ensuring the sustainable and stable development of the company.

IV. Main business analysis
1.Overview

The company has sufficient understanding and judgment on the changes in the future industry, and has always
been prepared for strategic layout, competitive differentiation, and internal capacity building. Throughout 2022,
even though there were adverse factors such as the uncertainty of the macro environment and the phased deep
losses in downstream breeding have brought enormous pressure to the entire feed industry, the company has
responded promptly with significant changes in its situations and pursued more stable and high-quality
development in an uncertain environment. While waiting for marginal improvement signals from the macro
environment, downstream bredding, and end-consumption, the company strengthens core competitive advantages
and team development, enhance organizational management capabilities and internal efficiency, and the
innovation to create differentiated competitive advantages.

During the reporting period, the company achieved the revenue of 104.715 billion yuan, a year-on-year increase
of 21.63%. The net profit to shareholders of the listed company was 2.954 billion yuan, an increase of 80.54%
year-on-year.
Business Overview

1. Feed sales have increased against the adverse trend, further increasing its market share

During the reporting period, the company achieved feed sales of 21.65 million tons (including 1.41 million tons
of internal aquaculture consumption), a year-on-year increase of 10%, and further increased its market share. ①
Aquatic feed achieved external sales of 5.12 million tons, a year-on-year increase of 10%, ranking first in the
world in terms of sales volume. Among them, special aquatic feed sales (shrimp, crab, and high-end fish feed)
increased by 23% year-on-year, mainly due to the excellent product strength of the company's aquatic feed,

comprehensive aquaculture solutions, customer-oriented service system, and dual empowerment of seedlings and
animal protection. The sales of common fish remained flat, mainly due to the sluggish market of ordinary fish
during the reporting period and the low interest of farmers to feed ordinaryfish. ② Poultryfeed exceeded the sales
threshold of 10 million tons, achieving an external sales volume of 10.02 million tons, a year-on-year increase of
6%, and achieving a counter trend growth. The company subdivides the breeding varieties of poultry, seeking
technological breakthroughs for each variety, creating differentiated products, and improving internal efficiency
to expand market share with more competitive, stable, and reliable products. Simultaneously, the companycarried
out cooperation with large-scale breeding factories and one-stop breeding companies through various flexible
cooperation methods. ③ Pig feed achieved an external sales volume of 4.94 million tons, a year-on-year increase
of 7%, and the national production capacity layout of pig feed has basically been achieved. With strong
technological research and development capabilities, pig feed research and development has made continuous
progress, and the products have good competitiveness. Based on its own pig farming business, the company has
started to build a service system and team for pig feed, providing technical support for farmers. ④ the company's
ruminant materials are steadily advancing according to the strategic plan, and the production capacity layout is
gradually implemented. In 2022, sales had achieved more than double growth.

2. The business of seedling and animal healthcare products continues to grow, and the company’s reputation
continues to improve

During the reporting period, the company's seedling business achieved the revenue of approximately 1.1 billion
yuan, especially shrimp seedling revenue increasing by 26% and gross profit margin approaching 60%. The
company has global leading technological advantages, resource reserves, and industrialization scale. The
independently developed aquatic seedlings include five new national varieties, including Fanna Litopenaeus
"Haixingnong 2" and "Changzhu Hybrid Mandarin Fish". The annual sales of shrimp and fish fry rank first in the
world with core technological advantages and outstanding market effects.The company has established high-level
breeding research team combining with Experts + Doctors + Masters + professional technical personnel,
possessing globally leading research and development technologies for shrimp and fish fry, and taking the lead in
building the commercial seedling industry system that integrates breeding and marketing.

In 2022, the company's animal healthcare products business achieved the revenue of 1.045 billion yuan, a year-
on-year increase of 17.05%. In terms of aquatic animal husbandry, the upgrading of aquaculture varieties, the
conceptof preventionahead treatment, and theincreasingdemand for green,environmentallyfriendly, and healthy
aquaculture products, the reasonable investment in animal husbandry can effectively improve aquaculture
efficiency and success rate. The demand for high-quality aquatic animal husbandry by farmers continues to
increase. The high-quality aquatic animal husbandry products can not only reduce the risk of diseases in
aquaculture products, at the same time, but also improve the extra value of health and safety of aquaculture
products. The company's aquatic animal healthcare products are led by distinctive technology and research and
development with a complete service system and mature breeding plans, and have strong market competitiveness
and excellent market reputation. In terms of livestock and poultry healthcare, the company has significantly
promoted the development of livestock and poultry business through the establishment of livestock and poultry
protection service stations in recent years, becoming an important platform to tightly connect with customers. A
number of livestock and poultry animal protection service stations has begun to take shape in 2022. After
accumulating certain experience, the company will summarize, optimize and improve the ability of the
management team, exploring the upgrading of the operating service system of livestock and poultry animal
protection service stations, and continuously improving their competitive advantages.


3. Expanding downstream of aquaculture on the basis of specialization

Approximately 3.2 million pigs were sold throughout the year, a year-on-year increase of about 60%, benefiting
from the increase of pig prices in the second half of the year and achieving profitability throughout the year. The
company continues to focus on improving the capabilities of the pig breeding team and the breeding system. The
team's managementand professionalabilities have been further improved, and multiple indicators such as survival
rate and breeding efficiency are at leading position of the industry. At the same time, with the gradual formation
of its own breeding system, combined with the research of feed and the scale advantages, the breeding cost has
made significant progress. In the future, the company will continue to improve breeding expertise, optimize
aquaculture costs, create thecompetitive advantages over the industry, and take effective measures to reduce profit
volatility based on the actual operation of the pig market. With the continuous expansion of the competitive
advantage, the value of pig business is becoming increasingly apparent. In addition to support the efficient
operation of the business itself, it can also create technical service system for pig feed which provides breeding
solutions, and service personnel with high professional literacy and rich breeding experience. The advantages of
theaquaticindustryinthecompanyareobvious.Currently,thecompanymainlycultivatesspecialaquaticproducts
such as raw fish and shrimp and achieved a revenue of approximately 1.1 billion yuan during the reporting period.
Among them, industrialized shrimp farming, through scientific design, circulating water system, biological feed
technology, and strict biological prevention and control, has advantages such as safety, controllability, and stable
quality compared to traditional farming models. In the future, the company will continue to focus on aquatic
species with advantages and less breeding risks. With high-quality feed, seedling, and animal healthcare three
body empowerment, refined management, and professional operation, the scale of breeding will be appropriately
expanded based on the developing professional team.

4. Professional procurement capability driving the development of trade business

During the reporting period, the company showed significant advantages in large-scale procurement, and the
procurement team had outstanding professional capabilities. They used various procurement tools such as trade,
futures, and options for inventory management and risk management to reduce procurement risks.

Building modern agricultural industry system and enhancing own competitiveness

1.Technology driving the development, talent and R&D fulfiling high-tech agriculture and animal husbandry
enterprises

The company is the high-tech agricultural and animal husbandry enterprise with technology as its core
competitiveness. In the fields of feed nutrition and aquatic breeding, the company's research and development
system, innovative achievements, and technological reserves are all in the leading position in the world.
Throughout 2022, the company invested 711 million yuan in research and development, a year-on-year increase
of 17.56%. The company has established three-level R&D system, first level R&D system aimed at the future
development, solving potential problems, and reserving sustainable development and innovation capabilities. The
secondary R&D system is market-oriented, reduces product costs, and closely follows market demand. The third
level R&D system directly faces end-consumers, improving their efficiency and creating value for them. The
companyhas laid outseven research directions, includinganimalgenetics and breeding, animalnutrition and feed,
animal medicine and biopharmaceuticals, microbial engineering, biochemistry, protein engineering, and healthy
aquaculture. The company focuses on the revision and improvement of animal nutrition and feed formula
databases, the development and application of feed resources, especially protein resources, the treatment
technology of raw material toxins, the development and application of precise nutrition, green environmental

protection, non-antibiotic feed, functional feed and feed additives et al. The focus of the breeding is to explore a
healthy breeding model for livestock and poultry which is suitable for small-scale intensive breeding. In terms of
breeding,wefocusonthedevelopmentofprawn,tilapia,bream,mandarinfish,rawfishetal.Intermsofbiological
products, the focus is on disease prevention and control technologies for livestock, poultry, and aquatic animals,
as well as the development of vaccines, testing kits, and disinfectant products.

2. Focusing on informatization, automation, and intelligence construction to improve production efficiency

Enhancing internal production and operation capabilities and creating an automated and intelligent production
system was to cooperate with the company's market development and production capacity supply.As a strong part
of the agricultural husbandry industry chain, the feed industry is developing towards mechanical automation
production and intelligent manufacturing. With the rapid development of the company's scale, the production
entities of the company have increased, the production areas have expanded synchronously, the feed varieties are
fully covered, and the product series are numerous. The operational efficiency of each production entity has put
forward higher requirements for the company's process technology, equipment management, and production
operation efficiency. In addition, in recent years, the market development in the same region by different market
teams have directly led to short-term expansion of the company's production capacity and the decrease in capacity
utilization. During the reporting period, the company focused on the construction of a smart supply chain,
continuously optimizing all aspects of the supply chain to gradually achieve standardization, streamline, lean,
informatization, automation, and intelligence of the supply chain, solving the main contradictions of low-capacity
utilization rate and tight market supply, different market team in the same market and the waste of production
capacity in some existing production entities. The company utilizes modern mechanical equipment and
technological means to pilot unmanned raw material supply, rationalized inventory, automated and flexible
product production, and precise and informatization of customer demands. The company will validate existing
methodologies, solidify, and optimize technical means, and continuously improve the management level and
operational efficiency of various production entities in different product types and regions to enhance internal
production and operation capabilities and improve capacity utilization to meet the company's market expansion
supply and improve asset operation efficiency.

When the fierce competition comes, it will inevitably accelerate the elimination of backward production capacity,
and the industry's concentration pace will rapidly increase. The company is confident in achieving the strategic
goal of 40- million-ton feed in the future and will fully leverage the advantages of the entire industry to forge
ahead on the path of accelerating the construction of an agricultural power.

2. Revenue and cost
(1) Components of operating income
Unit: RMB

2022 2021

% of % of Increase/decrease
Amount operating Amount operating

income income

Total operating 104,715,417,485.92 100% 86,091,961,539.13 100% 21.63%
income

By industry

Feed industry 92,259,788,044.27 88.11% 77,369,298,601.07 89.87% 19.25%

Farming industry 12,455,629,441.65 11.89% 8,722,662,938.06 10.13% 42.80%


2022 2021

% of % of Increase/decrease
Amount operating Amount operating

income income

By product

Feed 84,892,419,774.07 81.07% 69,825,872,761.95 81.11% 21.58%

Animal healthcare 1,044,659,775.65 1.00% 892,463,422.53 1.04% 17.05%
products

Agricultural 12,455,629,441.65 11.89% 8,722,662,938.06 10.13% 42.80%
products

Trade business 6,167,203,348.23 5.89% 6,389,973,548.31 7.42% -3.49%

Other businesses 155,505,146.32 0.15% 260,988,868.28 0.30% -40.42%

By region

Southern China 63,200,713,601.52 60.35% 55,241,351,415.93 64.17% 14.41%

Eastern China 14,161,170,693.21 13.52% 10,648,037,268.13 12.37% 32.99%

Northern China 32,620,746,322.29 31.15% 26,902,001,964.34 31.25% 21.26%

Central China 28,901,065,227.88 27.60% 20,310,973,692.55 23.59% 42.29%

Overseas 8,578,402,746.94 8.19% 7,058,846,596.73 8.20% 21.53%

Combined offset -42,746,681,105.92 -40.82% -34,069,249,398.55 -39.57% 25.47%

(2) Industries, products, regions or sales models accounting for over 10% of operating income or operating
profit of the Company
Applicable □ Not applicable
Unit: RMB

Increase/dec Increase/dec
rease of Increase/decre rease of
operating ase gross profit
income as of operating margin as
Gross compared to costs compared to
Operating income Operating costs profit the as compared the

margin correspondi to the correspondi
ng corresponding ng period of
period of period of the the prior
the prior prior year year

year

By industry

Feed industry 92,259,788,044.27 84,648,668,711.60 8.25% 19.25% 20.69% -1.10%

Farming industry 12,455,629,441.65 10,354,911,388.63 16.87% 42.80% 19.65% 16.08%

By product

Feed 84,892,419,774.07 78,060,758,981.95 8.05% 21.58% 22.96% -1.03%

Animal healthcare 1,044,659,775.65 535,805,808.94 48.71% 17.05% 22.15% -2.14%
products

Agricultural 12,455,629,441.65 10,354,911,388.63 16.87% 42.80% 19.65% 16.08%
products

Trade business 6,167,203,348.23 6,023,530,323.85 2.33% -3.49% -1.75% -1.72%

By region

Southern China 63,200,713,601.52 57,350,267,529.78 9.26% 14.41% 13.14% 1.02%

Eastern China 14,161,170,693.21 13,330,756,976.41 5.86% 32.99% 34.25% -0.88%

Northern China 32,620,746,322.29 31,523,115,524.69 3.36% 21.26% 21.89% -0.50%

Central China 28,901,065,227.88 27,301,990,389.82 5.53% 42.29% 39.22% 2.08%

Under the circumstances that the statistics specification for the Company’s principal operations data experienced
adjustment in the reporting period, the principal operations data upon adjustment of the statistics specification at

the end of the reporting period in the latest year

□Applicable  Not applicable

(3) Whether revenue from sales in kind is higher than revenue from services

 Yes □ No

By industry Item Unit 2022 2021 Increase/

decrease

Sales volume (including internal 10,000 2,165.11 1,963.01 10.29%
farming volume) tons

Feed Production output 10,000 2,179.47 1,968.72 10.70%
industry tons

Inventories 10,000t 38.70 24.34 58.99%
ons

Explanation on why the related data varied by more than 30%

Applicable □ Not applicable

The Company’s inventories increased 58.99% during the reporting period compared with last year, primarily
driven by the expansion of the Company's operating scale.

(4) Performance of material sales contracts and material procurement contracts of the Company during
the reporting period
□Applicable  Not applicable
(5) Composition of operating costs
Unit: RMB

2022 2021

By industry Item % of total % of total Increase/decrease
Amount operating Amount operating

costs costs

Feed Material costs 81,348,581,533.59 96.10% 66,949,873,406.58 95.45% 21.51%
industry

Feed Labor costs 901,705,904.44 1.07% 811,822,422.69 1.16% 11.07%
industry

Feed Manufacturing 2,205,869,130.50 2.61% 2,125,642,816.64 3.03% 3.77%
industry expenses

Feed Contract

industry performance 163,938,546.21 0.19% 168,291,264.44 0.24% -2.59%
costs

Feed Others 28,573,596.86 0.03% 83,020,525.57 0.12% -65.58%
industry

Total of feed industry 84,648,668,711.60 100.00% 70,138,650,435.92 100.00% 20.69%

Farming Material costs 8,602,722,539.07 83.08% 7,392,664,891.74 85.42% 16.37%
industry

Farming Labor costs 1,094,517,161.31 10.57% 790,248,820.86 9.13% 38.50%
industry

Farming Manufacturing 629,048,626.34 6.07% 448,867,372.92 5.19% 40.14%
industry expenses

Farming Contract

industry performance 28,623,061.91 0.28% 22,438,815.33 0.26% 27.56%
costs


Total of farming industry 10,354,911,388.63 100.00% 8,654,219,900.85 100.00% 19.65%

Unit: RMB

2022 2021

By product Item % of total % of total Increase/dec
Amount operating Amount operating rease

costs costs

Feed Material costs 74,869,360,421.56 95.91% 60,455,275,979.29 95.23% 23.84%

Feed Labor costs 874,421,190.94 1.12% 785,254,553.85 1.24% 11.36%

Feed Manufacturing 2,172,776,439.83 2.78% 2,093,425,159.76 3.30% 3.79%
expenses

Feed Contract 144,200,929.62 0.18% 151,888,871.26 0.24% -5.06%
performance costs

Total feed 78,060,758,981.95 100.00% 63,485,844,564.16 100.00% 22.96%

Animal

healthcare Material costs 455,690,788.17 85.05% 363,472,970.68 82.86% 25.37%
products
Animal

healthcare Labor costs 27,284,713.51 5.09% 26,567,868.84 6.06% 2.70%
products

Animal Manufacturing

healthcare expenses 33,092,690.67 6.18% 32,217,656.88 7.34% 2.72%
products

Animal Contract

healthcare performance costs 19,737,616.59 3.68% 16,402,393.18 3.74% 20.33%
products

Total animal healthcare products 535,805,808.94 100.00% 438,660,889.58 100.00% 22.15%

Agricultural Material costs 8,602,722,539.07 83.08% 7,392,664,891.74 85.42% 16.37%
products

Agricultural Labor costs 1,094,517,161.31 10.57% 790,248,820.86 9.13% 38.50%
products

Agricultural Manufacturing 629,048,626.34 6.07% 448,867,372.92 5.19% 40.14%
products expenses

Agricultural Contract 28,623,061.91 0.28% 22,438,815.33 0.26% 27.56%
products performance costs

Total agricultural products 10,354,911,388.63 100.00% 8,654,219,900.85 100.00% 19.65%

Trade Sales costs 6,023,530,323.85 100.00% 6,131,124,456.61 100.00% -1.75%
business

Other Sales costs 28,573,596.86 100.00% 83,020,525.57 100.00% -65.58%
businesses
Notes
None

(6) Change of scope of consolidation during the reporting period

 Yes □ No

During the year, the scope of consolidation included 528 subsidiaries, increasing by 50 and reducing by 20 as
compared with the last year. For details, please refer to the Note "VI. Change in Consolidation Scope" and the
Note "VII. Interests in Other Entities" in Section X “Financial Statements".


(7) Significant change in or adjustment of the businesses, products or services of the Company during the
reporting period
□Applicable  Not applicable

(8) Sales to major customers and major suppliers

Sales to major customers of the Company

Total sales to top 5 customers (RMB) 1,810,005,058.86

Total sales to top 5 customers as a percentage of the total sales 1.73%
for the year

Sales to top 5 customers who are related parties as a percentage 0.00%
of the total sales for the year

Information on top 5 customers of the Company

As a percentage

No. Name of customer Sales (RMB) of the total sales

for the year (%)

1 No. 1 421,365,186.02 0.40%

2 No. 2 404,227,525.25 0.39%

3 No. 3 343,221,269.73 0.33%

4 No. 4 323,669,974.81 0.31%

5 No. 5 317,521,103.05 0.30%

Total -- 1,810,005,058.86 1.73%

Other explanation of major customers
 Applicable □ Not applicable

The top five customers of the Company are mainly customers of raw materials and poultry feed. The top five
customers have no related relationship with the Company. The Company’s directors, supervisors, senior
management, core technical personnel, shareholders holding more than 5% of shares, actual controller and other
related parties do not have direct or indirect interest in the major customers. The top five customers accounted for
1.73% of total annual sales. The Company’s sales revenue does not depend on single or top five customers.

Major suppliers of the Company

Total purchases from top 5 suppliers (RMB) 10,179,148,619.52

Total purchases from top 5 suppliers as a percentage of the total 10.97%
purchases for the year

Total purchases from top 5 suppliers who are related parties as 0.00%
a percentage of the total purchases for the year

Information on top 5 suppliers of the Company

As a percentage of

No. Name of supplier Purchases (RMB) the total purchases

for the year (%)

1 No. 1 3,254,719,697.03 3.51%

2 No. 2 2,221,057,408.99 2.39%

3 No. 3 1,625,131,068.88 1.75%

4 No. 4 1,564,252,054.49 1.68%

5 No. 5 1,513,988,390.13 1.63%

Total -- 10,179,148,619.52 10.97%

Other explanation of major suppliers
 Applicable □ Not applicable

The top five suppliers of the Company have no related relationship with the Company. The Company’s directors,
supervisors, senior management, core technical personnel, shareholders holding more than 5% of shares, actual
controller and other related parties do not have direct or indirect interest in the major suppliers. The top five
suppliers accounted for 10.97% of total annual purchases. The Company’s purchases do not depend on single or
top five suppliers.
3. Expenses
Unit: RMB

2022 2021 Increase/ Reasons for material changes

decrease

Mainly due to the expansion of the

Selling and 1,980,987,068.23 1,808,249,264.31 9.55% Company's operating scale, and the

distribution expenses increase in personnel and their

remunerations

Mainly due to the expansion of the

General and Company's operating scale, the

administrative 2,583,815,226.76 2,228,521,838.59 15.94% increase in personnel and their

expenses remunerations, and the increase in

office expenses

Mainly due to the expansion of the

Financial expenses 596,764,082.61 402,888,653.32 48.12% Company's operating scale, and the

increased interest on acceptance notes
issued for raw material suppliers

Research and 711,235,490.13 605,020,192.04 17.56% Mainly due to the increase in R&D

development expenses personnel and their remunerations

4. Research and development investments
Applicable □ Not applicable

Name of major R&D Purpose Progress Specific objectives Expected impact on the
project Company

The verification test for To develop functional To drive the

the effectiveness of mixed animal feeds for advancement of the

dozens of formulas in white-leg shrimp that animal husbandry

The development of the simulated market can be commercially industry by the

the specified animal The development of winter shed animal promoted to address optimization of animal
feed for white-leg functional animal feeds husbandry conditions the shortcomings of feed products and raise
shrimp for wintering has been carried out. In slow growth and longer the influence of the

period addition, the pilot test animal husbandry Company's products on
has been conducted on period of white-leg the industrial

the terminal market of shrimp for wintering improvement

animal husbandry. period

The appropriate The consumption of
additive amounts of fish meals can be

new protein sources To significantly reduce reduced. The raw

The effectiveness have been determined. the costs of animal materials for animal
appraisal and With the use of feeds and achieve feeds can be more

application and The development of crystalline amino acids, better growth diversified and

promotion for the new protein sources taurine, performance, stronger environmentally

replacement of fish immunopotentiator, immunity and friendly. Meanwhile,
meal with new protein and enzymic resistance to stress for the operation costs of
sources preparations, the shrimps the Company can be
results have been significantly decreased,
improved. thus increasing the

competitiveness of


Name of major R&D Purpose Progress Specific objectives Expected impact on the
project Company

shrimp feed products
and creating additional
value for customers.

The accurate nutrition To ensure more The costs of the animal
demand for shrimps in accurate nutrition of feeds can be

multiple animal shrimps, save costs of significantly reduced
husbandry modes animal feeds, avoid and the animal

(higher-place pond, wastes of animal feeds, husbandry costs for

The establishment and earth dike, shed, and protect the farmers can be

maintenance of the Targeted nutrition industrial animal environment, guarantee magnificently

targeted nutrition husbandry) at different the more complete decreased. The growth
database for shrimps phases (white water, digestion and performance for

winter shed, etc.) and absorption of animal shrimps can be higher,
under different animal feeds for shrimps, and thus driving the green
husbandry significantly improve development of the

environments (salinity, the growth shrimp farming

temperature, etc.) performance industry.

To choose raw

materials that are easier

to digest and absorb so

that the gastrointestinal

tract of piglets can

better shred and digest.

The research on the As a result, the piglets

nutrition value can be healthier and of

The establishment of evaluation of different higher survival rate due The good quality of

the nutrition system of raw materials, nutrition to the all-around and creep feeds and nursing
the creep feeds and Targeted nutrition demand, feeding balanced nutrition. In feeds can be created,
nursing feeds modes, and feed addition, the piglets thus making it the

processing has been can have better industrial benchmark.
completed. intestinal development

and less diarrhea. The

animal feeds can be

better chewed to make

the nutrition absorption

better and more

balanced to make the

piglets grow faster.

In terms of the

common diseases for

piglets and breeding

pigs, the Centering on the core
The immunopotentiator immunopotentiator can concept of creating

The establishment of The development of has been developed to effectively improve the values for customers,
the disease-resistant functional animal feeds improve the resistance disease resistance of the animal husbandry
nutrition system for the and functional to bacterial and viral the swine herd, thus efficiency can be raised
swine herd additives diseases in the swine providing a stronger and brand

herd. guarantee for the competitiveness can be
healthy and effective given play.

production of the

animal husbandry of

the swine herd.

Research and development personnel of the Company

2022 2021 Percentage change

Research and development 3,382 3,049 10.92%
headcount

Ratio of research and 9.39% 9.09% 0.30%
development personnel

Educational background of research and development personnel

Bachelor’s degree 827 736 12.36%

Master’s degree 763 636 19.97%


Doctoral degree 113 111 1.80%

Age structure of research and development personnel

Below 30 1,844 1,701 8.41%

30~40 1,026 938 9.38%

40~50 330 266 24.06%

Over 50 182 144 26.39%

Research and development investments of the Company

2022 2021 Percentage change

Research and development 711,235,490.13 605,020,192.04 17.56%
investments (RMB)

Research and development 0.68% 0.70% -0.02%
investments as % of operating income

Capitalized amount of research and 5,081,480.58 14,561,385.46 -65.10%
development investments (RMB)

Capitalized research and development

investments as % of total research and 0.71% 2.41% -1.70%
development investments

Note: The 2021 data in the table above have been retrospectively adjusted upon audit.

Reasons for significant change in the composition of research and development personnel and the impact

□Applicable  Not applicable

Reasons for significant change in total research and development investments as % of operating income

□Applicable  Not applicable

Reasons for significant change in capitalization rate of research and development investments and explanations
thereon
□Applicable  Not applicable
5. Cash flows
Unit: RMB

Item 2022 2021 Increase/

decrease

Sub-total of cash inflows 106,959,926,011.77 88,764,663,792.04 20.50%
from operating activities

Sub-total of cash outflows for 100,142,031,760.86 85,626,715,541.35 16.95%
operating activities

Net cash flows from operating 6,817,894,250.91 3,137,948,250.69 117.27%
activities

Sub-total of cash inflows 8,817,852,475.04 4,131,496,813.28 113.43%
from investing activities

Sub-total of cash outflows for 14,263,337,049.36 8,354,711,112.76 70.72%
investing activities

Net cash flows from investing -5,445,484,574.32 -4,223,214,299.48 -28.94%
activities

Sub-total of cash inflows 14,012,643,640.87 17,465,010,784.87 -19.77%
from financing activities

Sub-total of cash outflows for 14,942,687,770.42 16,686,344,678.54 -10.45%
financing activities

Net cash flows from financing -930,044,129.55 778,666,106.33 -219.44%
activities

Net increase in cash and cash 441,039,279.27 -329,778,050.36 233.74%
equivalents


Explanation on main effects of material changes

Applicable □ Not applicable

1. Net cash flows from operating activities increased by 117.27% as compared to the corresponding period of the
prior year mainly due to the increased cash received from sales of goods in the period.

2. Net cash flows from investing activities decreased by 28.94% as compared to the corresponding period of the
prior year mainly due to the increased production capacity investment, cash management with idle own funds and
hedges.

3. Net cash flows from financing activities decreased by 219.44% as compared to the corresponding period of the
prior year mainly because bank loans increased considerably in the prior year while the balance of bank loans was
almost flat in the period.

Explanation on main reasons leading to the material difference between net cash flows from operating activities
during the reporting period and net profit for the year

□Applicable  Not applicable
V. Analysis of Non-Principal Operations
□Applicable  Not applicable

VI. Analysis of Assets and Liabilities

1. Material changes of asset items

Unit: RMB

As at the end of 2022 As at the beginning of 2022

As % As % Percenta

Amount of Amount of ge Description of major changes
total total change

assets assets

At the end of the period, the

percentage in total assets

increased by 0.24 percentage

point; and the balance increased
Cash at bank 2,260,586,666.69 5.11% 1,739,655,125.14 4.87% 0.24% by 29.94% from the beginning
and on hand of the period, which was mainly
due to the increased cash from

operating activities as a result of
the expansion of the Company's
business scale.

At the end of the period, the

percentage in total assets

increased by 0.79 percentage

point; and the balance increased
by 50.93% from the beginning
Accounts of the period, which was mainly
receivable 1,952,007,881.05 4.41% 1,293,328,829.38 3.62% 0.79% due to the expansion of the

Company's operating scale, and
the slower pace of fish sales and
payment by farmers in the

November-December period as
a result of transportation

disruptions and weak


consumption.

Contract assets 0.00 0.00% 0.00 0.00% 0.00% N/A

At the end of the period, the

percentage in total assets

increased by 3.41 percentage

points; and the balance

Inventories 12,625,081,651.36 28.54 8,970,187,858.27 25.13 3.41% increased by 40.74% from the

% % beginning of the period, which
was mainly due to the

expansion of the Company's

business scale and the general

increase in raw material prices.

At the end of the period, the

percentage in total assets

decreased by 0.02 percentage

Investment 26,856,587.98 0.06% 26,941,013.33 0.08% -0.02% point; and the balance

properties decreased by 0.31% from the

beginning of the period, almost
flat with the beginning of the

period.

At the end of the period, the

percentage in total assets

Long-term decreased by 0.13 percentage

equity 315,182,888.17 0.71% 301,076,512.33 0.84% -0.13% point; and the balance increased
investments by 4.69% from the beginning of
the period, which was mainly

due to the increased investment
income from associates.

At the end of the period, the

percentage in total assets

increased by 2.18 percentage

points; and the balance

increased by 32.48% from the

beginning of the period, which
Fixed assets 14,933,452,189.00 33.76 11,271,964,642.0 31.58 2.18% was mainly because the

% 7 % Company’s projects under

construction were transferred to
fixed assets after completion

and being put into production in
the year, as well as due to the

increase in purchase and

construction of fixed assets.

At the end of the period, the

percentage in total assets

decreased by 1.18 percentage

points; and the balance

decreased by 10.06% from the

Construction in 1,377,352,318.21 3.11% 1,531,493,842.31 4.29% -1.18% beginning of the period, which
progress was mainly because the

Company’s projects under

construction were transferred to
fixed assets after completion

and being put into production in
the year.

At the end of the period, the

percentage in total assets

decreased by 1.17 percentage

points; and the balance

Right-of-use 2,371,772,104.05 5.36% 2,331,346,912.43 6.53% -1.17% increased by 1.73% from the

assets beginning of the period, which
was mainly due to the new

business of leases conducted by
the Company in a bid to expand
its operating scale.

Short-term 2,910,809,252.56 6.58% 3,782,336,144.35 10.60 -4.02% At the end of the period, the

loans % percentage in total assets


decreased by 4.02 percentage

points; and the balance

decreased by 23.04% from the

beginning of the period, which
was mainly due to the decreased
loans as a result of the increased
settlements with notes in the

procurement of raw materials,

and the adjustments to the debt
structure.

At the end of the period, the

percentage in total assets

decreased by 1.46 percentage

points; and the balance

Contract decreased by 9.84% from the

liabilities 1,720,519,173.21 3.89% 1,908,259,980.27 5.35% -1.46% beginning of the period, which
was mainly due to the slower

pace of fish sales and

prepayment by farmers in the

November-December period as
a result of weak consumption.

At the end of the period, the

percentage in total assets

decreased by 0.91 percentage

Long-term 11.45 12.36 point; and the balance increased
loans 5,066,407,199.42 % 4,411,107,883.25 % -0.91% by 14.86% from the beginning
of the period, which was mainly
due to the adjustments to the

short- and long-term loan

structure.

At the end of the period, the

percentage in total assets

decreased by 0.78 percentage

Lease liabilities 1,610,426,421.30 3.64% 1,578,746,388.19 4.42% -0.78% point; and the balance increased
by 2.01% from the beginning of
the period, almost flat with the
beginning of the period.

At the end of the period, the

percentage in total assets

increased by 1.57 percentage

points; and the balance

Held-for- increased by 27,810.78% from
trading 699,942,009.75 1.58% 2,507,784.13 0.01% 1.57% the beginning of the period,

financial assets which was mainly due to the

increased hedges for raw

materials and pigs, as well as

the increased cash management
with idle funds.

At the end of the period, the

percentage in total assets

increased by 0.80 percentage

point; and the balance increased
Other 1,322,999,051.80 2.99% 780,025,770.40 2.19% 0.80% by 69.61% from the beginning
receivables of the period, which was mainly
due to the increased futures

margins and security deposits

paid in the procurement of raw
materials.

At the end of the period, the

percentage in total assets

decreased by 0.82 percentage

Other non- 193,070,520.82 0.44% 450,825,044.08 1.26% -0.82% point; and the balance

current assets decreased by 57.17% from the

beginning of the period, which
was mainly due to the decreased
prepayments for equipment.

Notes payable 3,502,208,518.33 7.92% 407,090,978.58 1.14% 6.78% At the end of the period, the


percentage in total assets

increased by 6.78 percentage

points; and the balance

increased by 760.30% from the

beginning of the period, which

was mainly due to the increased

settlements with notes in the

procurement of raw materials.

At the end of the period, the

percentage in total assets

increased by 0.72 percentage

Accounts 5,341,179,436.25 12.07 4,051,704,338.04 11.35 0.72% point; and the balance increased

payable % % by 31.83% from the beginning

of the period, which was mainly

due to the increased

procurement of raw materials.

At the end of the period, the

percentage in total assets

increased by 1.26 percentage

Non-current points; and the balance

liabilities due 1,258,497,814.94 2.84% 563,923,844.74 1.58% 1.26% increased by 123.17% from the

within one year beginning of the period, which

was mainly due to the increase

in long-term loans due within

one year.

At the end of the period, the

percentage in total assets

increased by 0.15 percentage

point; and the balance increased

Other current 559,698,472.24 1.27% 398,722,254.96 1.12% 0.15% by 40.37% from the beginning

liabilities of the period, which was mainly

due to the increase in utilities

and commissioned farming

expenses payable as a result of

business development.

Overseas assets account for a larger proportion in total assets

□Applicable  Not applicable

2.Assets and liabilities measured at fair value

Applicable □ Not applicable

Unit: RMB

Impair

Gain or loss Cumulative ment

Opening from changes in fair value provid Purchases Disposal Other

Item balance fair value during changes ed during the during chang Closing balance
the period recognized in during period the period es

equity the

period

Financial assets
1. Held-for-
trading
financial

assets 2,507,784.13 10,921,635.79 343,105,696.10 439,630,197.91
(exclusive
of derivative
financial
assets)

Sub-total of 343,105,696.1

financial 2,507,784.13 10,921,635.79 0 439,630,197.91
assets


Others 286,569,300.5 -4,425,454.46 1,961,200,0 1,723,552, 527,256,565.96
(note) 5 00.00 490.79

Total of the 289,077,084.6 6,496,181.33 343,105,696.1 1,961,200,0 1,723,552, 966,886,763.87
above 8 0 00.00 490.79

Financial 44,174,431.17 -32,445,293.88 46,533,780.00
liabilities

Note: Others include bank’s wealth management products and non-current financial assets measured at fair value.
Contents of other changes
None

Whether there were any material changes on the measurement attributes of major assets of the Company during
the reporting period
□ Yes  No

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

As at the end of the reporting period, the Company still had restricted assets of RMB 173,324,350.79, which were
mainly land reclamation deposits, letter of credit deposits, guarantee deposits, deposits for bank guarantees, and
futures margins.
VII. Analysis of Investments
1. Overview
Applicable □ Not applicable

Investments during the Investments during

the corresponding period of Change

reporting period (RMB) prior year (RMB)

5,001,931,119.51 4,659,257,785.73 7.35%

2. Material equity investments during the reporting period

□Applicable  Not applicable

3. Material non-equity investments during the reporting period

□Applicable  Not applicable
4. Financial investments
(1) Securities investments
□Applicable  Not applicable

The Company did not make any securities investment in the reporting period.

(2) Derivatives investments
Applicable □ Not applicable

1) Derivatives investments for hedging purposes in the reporting period

Applicable □ Not applicable
Unit: RMB’0,000

Gain or loss Closing
from changes Cumulative investment
Type of Initial in fair value Purchased in Sold in the Closing amount as %
derivative investmen fair value changes the period period investment of the

investment t amount during recognized in amount Company’s
the period equity closing net
assets

Futures 9,869.97 -2,829.53 36,234.61 720,576.36 677,602.19 48,631.02 2.51%
company

Commercial 677.16 -1,924.04

bank

Total 9,869.97 -2,152.37 34,310.57 720,576.36 677,602.19 48,631.02 2.51%

Explanation of

significant

changes in The Company conducted accounting processing of hedging business in accordance with the stipulations in the
accounting Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement ofFinancial Instruments
policies and (《企业会计准则第 22 号——金融工具确认和计量》), the Accounting Standards for Business Enterprises
specific (《企业会计准则第 23 号——金融资产转移》),

accounting No. 23 - Transfer of Financial Assets the Accounting
measurement Standards for Business Enterprises No. 24 - Hedging Accounting (《企业会计准则第 24 号——套期会计》)
principles in and the Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments (《企业
respect of the 会计准则第 37 号——金融工具列报》) as well as their guidelines. In 2022, no significant changes occurred
hedges for the to the accounting policies and measurements in respect of the hedges for the reporting period as compared to
reporting period the previous reporting period.

as compared to

the previous

reporting period

The Company conducts commodity futures hedges in order to hedge against fluctuations in the market prices of
Explanation of raw materials such as corn and meal, as well as the risk of fluctuations in expected future cash flows arising
the actual gains from the expected sales of pigs; and foreign exchange hedges in order to hedge against the operational risks
and losses in the posed to the Company by fluctuations in foreign exchange rates. During the reporting period, the Company's
reporting period commodityand foreign exchangehedges werereflected in two financial statement lineitems, namelyinvestment
income and gains and losses from changes in fair value at a total amount of RMB 180 million.

The Company engaged in commodity futures hedges mainly for corn, meal and other raw materials related to
production and operation as well as the sales of pigs. The risk of changes in the value of the hedged items was
Explanation of effectively hedged through changes in the value of the hedging instruments, with the expected risk management
the effect of objectives basicallyachieved. The Company's foreign exchange hedges were carried out because the Company's
hedges overseas bank loans and procurement were exposed to the risk of exchange rate fluctuations. By carrying out
forward foreign exchange settlement and sale, currency swaps, etc., the Company was able to lock in the
exchange rate costs and effectively hedge the uncertainty risk arising from exchange rate fluctuations.

Funding source Self-funded

Risk analysis of 1. The hedging business was compatible with the production and operation of the Company. The Company
positions held in strictly controlled the positions offutures and options, conducted foreign exchange hedging transactions in strict
derivatives accordancewith itsprojected collection period, payment period andamount, andreasonablymadeuseoffutures,
during the options, portfolios of the aforementioned products, foreign exchange hedging and other instruments to have a
reporting period lock on the Company's costs and expenses of raw materials of animal feeds and other related products.

and explanation 2. Relevant departments and personnel strictly controlled the scale of hedging funds, reasonably planned and
of control used the margin, and gave operation instructions in strict accordance with the Company's futures trading
measures management policies. No operation could be carried out unless it had been approved in light of related
(Including but regulations. The Company will reasonably allocate funds for its hedging business.

not limited to 3. In accordance with the Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed
market risk, Companies—the Standard Operation of Main Board Listed Companies (《深圳证券交易所上市公司自律监
liquidity risk, 管指引第 1 号--主板上市公司规范运作》), the Futures Management Policy (《期货管理制度》), the
credit risk, Measures for Futures Management (《期货管理办法》), and the Management Measures for the Operation of


operational risk, Pig Futures (《生猪期货业务操作管理办法》) have been formulated, which clearly stipulate the approval
legal risk, etc.) authority, internal review process and risk handling procedures for hedging business. The Company has
established a special team for commodity hedging operation and a monitoring team for commodity hedging
operation, and developed corresponding business procedures. Relevant business and activities were controlled
through the implementation of authorization, position restraint, internal audit and other measures.

4. The Company has formulated the Policy for the Management of Foreign Exchange Hedging Business (《外
汇套期保值业务管理制度》), which clearly stipulates the limit of foreign exchange hedging business, the
scope of varieties, approval authority, internal review procedures, responsible departments and persons,
information isolation measures, internal risk reporting policies and risk handling procedures. The Policy is in
conformity with the relevant requirements of regulatory authorities, meets the needs of actual operation, and
contains effective risk control measures.

5. The Securities Department of the Company conducted regular and irregular inspections of the hedging
transaction business, and supervised the implementation of risk management policies and risk management
procedures by the personnel taking charge of the hedging transaction business, to timely prevent operational
risks in the business.

Changes in
market prices or
fair value of
derivative
products during

the reporting Since the Company's varieties of commodity hedging transactions were traded at futures exchanges, with
period, specific transparent markets and active transactions, the transaction price and the settlement unit price of the day could
methods used fully reflect the fair value of the derivatives. The varieties of foreign exchange hedging transactions were
and relevant measured at the fair value on thedate ofcontract signing between the Companyand commercial banks, and their
assumption and fair value was subsequently measured based on the valuation notices issued by each commercial bank at the end
parameter of the period.

settings shall be
disclosed for
analysis of fair
value of
derivatives
Legal matters

involved (if N/A

applicable )
Disclosure date
of the
announcement
about the

board’s consent 12 April 2022

for the
derivative
investment (if
any)
Disclosure date
of the
announcement
about the

board’s consent 28 October 2022

for the
derivative
investment (if
any)
Disclosure date
of the
announcement
about the
shareholders’

general 10 May 2022

meeting’s
consent for the
derivative
investment (if
any)
Disclosure date

of the 8 November 2022

announcement


about the

shareholders’

general

meeting’s

consent for the

derivative

investment (if

any)

1. The commodity hedging business of the Company was carried out in strict accordance with relevant policies.

Therefore, the Company effectively controlled the cost of raw materials related to production and trade as well

as related products, and effectively prevented and mitigated risks. The relevant approval procedures for the

Company to use its own funds to carry out hedging business in commodity futures and options markets were in

compliance with relevant national laws and regulationsas well as provisionsin the Articles ofAssociation (《公

Special opinions 司章程》). The Company has established a sound organizational structure and developed the Futures

expressed by Management Policy (《期货管理制度》) for commodity hedging. There is no circumstance where the interest

independent of the Company and its entire shareholders has been damaged.

directors 2. The decision-making procedures of the Company for foreign exchange hedging business were in compliance

concerning the with relevant national laws and regulations as well as provisions in the Articles of Association. The Company

Company's made use of foreign exchange hedging instruments to reduce exchange rate risks and financial expenses and

derivatives control operational risks on the basis of normal production and operation. There is no circumstance where the

investment and interest of the Company, its entire shareholders and especially, its minority shareholders has been damaged. At

risk control the same time, the Company has formulated the Policy for the Management of Foreign Exchange Hedging

Business (《外汇套期保值业务管理制度》). By strengthening internal control and implementing risk

prevention measures, specific operation standards have been developed for the Company's foreign exchange

hedging business.

In summary, it is approved that the Company and its majority-owned subsidiaries carry out commodity hedging

business and foreign exchange hedging business within the limit approved by the Board of Directors.

2) Derivatives investments for speculative purposes in the reporting period

□Applicable  Not applicable

The Company did not make any derivatives investment for speculative purposes in the reporting period.

5. Use of raised funds
Applicable □ Not applicable

(1) Overall use of raised funds

Applicable □ Not applicable
Unit: RMB’0,000

Total Proporti Raised
raised on of funds
Total Total raised funds Total total Total that
Year raised funds that with accumulativ accumul raised Use and have
for Method Total funds that have been altered e raised ative funds that ownership been
fund- of fund- raised have been used purposes funds with raised have not change of left
raising raising funds used in accumulativ during altered funds been used unused unuse
the current ely the purposes with yet raised funds d for
period reportin altered over
g period purpose two
s years

Public In addition

offering to

of temporary

2020 converti 283,000 48,142.55 235,526.09 42,267 73,744.24 26.06% 47,379.98 replenishme 0
ble nt of

corporat working

e bonds capital and


cash

managemen

t, the unused

amount of

raised funds

was

deposited in

the special

bank

account for

fund-raising

projects.

Total -- 283,000 48,142.55 235,526.09 42,267 73,744.24 26.06% 47,379.98 -- 0

Explanation of the overall use of raised funds

Upon the approval of the CSRC through the issuance oftheApproval on thePublic Offering ofConvertible Corporate Bondsby Guangdong
Haid Group Co., Limited (《关于核准广东海大集团股份有限公司公开发行可转换公司债券的批复》) (Zheng Jian Xu Ke [2020] No.
205), the Company was allowed to issue convertible corporate bonds with a total face value of RMB 2,830 million to the public. Actually,
the Company issued 28.30 million convertible corporate bonds with a face value of RMB 100 each to the public, and raised RMB
2,830,000,000.00 of funds in total. After deducting the fees related to the issuance, the actual net raised funds was RMB 2,810,854,230.16.
Theavailabilityoftheabove-mentioned raised fundshasbeen verified byGrant Thornton China(Special General Partnership), which issued
the Capital Verification Report (《验资报告》) (Grant Thornton Yan Zi [2020] No. 440ZC0065) on 26 March 2020.

As at 31 December 2022, the Company used RMB 2,355.2609 million of raised funds, accrued RMB 18.2065 million of interest inco me
(with banks' handling fees deducted), and temporarily replenished the working capital with RMB 447.8581 million of idle raised funds. The
balance of its special account for raised fund deposit was RMB 25.9417 million.


(2) Committed projects of raised funds

Applicable □ Not applicable
Unit: RMB’0,000

Whether Accumulati Investment

projects Total The ve progress as Benefits Whether Whether
Committed investment projects have been committed Adjusted investmen investment at the end of Date when the recorded the there are
and investment of excessive raised altered investment total t amount amount as the projects are during the estimated material

funds (including with raised investment during the at the end of reporting ready for their reporting benefits changes in
partial funds amount (1) reporting the period (3)＝ intended use period are the project
alternation) period reporting (2)/(1) reached feasibility
period (2)

Committed investment projects

1. Animal feed project of Nantong

Haid with an annual output of No 7,144.21 7,144.21 0 7,200.25 100.78% October 2021 427.33 No No

240,000 tons (hereinafter referred

to as the "Nantong Haid project")

2. Animal feed project of

Qingyuan Haid with an annual

output of 240,000 tons (hereinafter No 6,493.11 6,493.11 0 6,504.38 100.17% September 2021 1,200.4 No No

referred to as the "Qingyuan Haid

project")

3. Animal feed project of Huai'an

Hailong with an annual output of

200,000 tons (hereinafter referred Yes 16,123.49 11,177.39 1,455.23 11,081.21 99.14% December 2022 441.38 No No

to as the "Huai'an Hailong

project")

4. Animal feed project of Nanning

Haid with an annual output of No 23,589.07 23,589.07 4,007.16 22,846.56 96.85% October 2022 1,451.32 No No

480,000 tons (hereinafter referred

to as the "Nanning Haid project")

5. Animal feed project of Zhaoqing

Gaoyao with an annual output of

240,000 tons (hereinafter referred No 4,679.43 4,679.43 0 4,679.43 100.00% April 2020 1,019.45 No No

to as the "Zhaoqing Gaoyao

project")

6. Animal feed project of Fuzhou

Haid with an annual output of Yes 29,075.05 20,429.86 5,509.5 20,528.88 100.48% December 2022 -1,753.55 No No

180,000 tons (hereinafter referred

to as the "Fuzhou Haid project")

7. Animal feed project of Yes 15,053.58 2,176.01 0 2,176.01 100.00% December 2022 0 Change of No

Qingyuan Haibei with an annual project


output of 30,000 tons (hereinafter completed

referred to as the "Qingyuan
Haibei project")
8. Animal feed project of
Shaoguan Haid with an annual

output of 400,000 tons (hereinafter No 13,964.32 13,964.32 0.06 14,036.65 100.52% December 2021 1,861.76 Yes No

referred to as the "Shaoguan Haid

project")
9. Animal feed project of
Qingyuan Hailong with an annual

output of 720,000 tons (hereinafter No 36,955.3 36,955.3 6,436.23 35,683.64 96.56% December 2022 1,764.37 No No

referred to as the "Qingyuan
Hailong project")
10.Animal feed project of Yicheng

Haid with an annual output of Yes 16,509.88 10,389.94 1,177.07 10,173.44 97.92% December 2022 320.03 No No

380,000 tons (hereinafter referred

to as the "Yicheng Haid project")

11. Animal feed project of Hexian

Haid with an annual output of No 21,344.95 21,344.95 2,120.82 20,217.98 94.72% June 2022 -306.82 No No

300,000 tons (hereinafter referred

to as the "Hexian Haid project")

12.Animal feed project of Kaifeng

Haid with an annual output of Yes 17,069.03 12,693.22 1,793.86 12,594.43 99.22% December 2022 1,189.06 Yes No

300,000 tons (hereinafter referred

to as the "Kaifeng Haid project")

13.Animal feed project of

Zhanjiang Haid with an annual Change of

output of 200,000 tons (hereinafter Yes 20,380.33 0 0 0 0.00% December 2022 0 project No

referred to as the "Zhanjiang Haid completed

project")
14.Animal feed project of Yulin

Haid with an annual output of Yes 31,186.61 17,483.66 6,456 17,562.16 100.45% December 2022 75.41 No No

450,000 tons (hereinafter referred

to as the "Yulin Haid project")

15.Animal feed project of Sichuan
Rongchuan with an annual output

of 200,000 tons (hereinafter Yes 23,431.64 18,954.64 8,655.88 18,694.03 98.63% December 2022 -724.45 No No

referred to as the "Sichuan
Rongchuan project")
16.Animal feed project of
Jiangmen Rongchuan with an

annual output of 270,000 tons No 0 22,000 9,878.93 22,066.47 100.30% December 2022 -1,109.88 No No

(hereinafter referred to as the
"Jiangmen Rongchuan project")

17. Biological compound feed

project of Huainan Haid with an

annual output of 300,000 tons No 0 9,477.24 651.84 9,480.6 100.04% July 2021 -657.7 No No

(hereinafter referred to as the
"Huainan Haid project")
18. Biological feed project of
Yancheng Rongchuan

Biotechnology Co., Ltd. with an No 0 10,500 0 0 0.00% December 2023 0 N/A No

annual output of 300,000 tons

(hereinafter referred to as the "

Yancheng Rongchuan project")
19. Biological compound feed

project of Pingnan Haid Feed Co.,

Ltd. with an annual output of No 0 5,767 0 0 0.00% June 2023 0 N/A No

300,000 tons (hereinafter referred

to as the "Pingnan Haid project")

20. High-end aquatic feed project
of Hexian Haid Biotechnology

Co., Ltd. with an annual output of No 0 12,500 0 0 0.00% June 2024 0 N/A No

150,000 tons (hereinafter referred
to as the "Hexian High-end
Aquatic Feed project")
21. Biological compound feed
project of Enshi Haid

Biotechnology Co., Ltd. with an No 0 8,900 0 0 0.00% December 2023 0 N/A No

annual output of 350,000 tons
(hereinafter referred to as the
"Enshi Haid project")
22. Feed mill construction project

of Xingtai Haid Biotechnology No 0 4,600 0 0 0.00% December 2023 0 N/A No

Co., Ltd. (hereinafter referred to as

the "Xingtai Haid project")

Subtotal of committed investment -- 283,000 281,219.35 48,142.55 235,526.09 -- -- 5,198.11 -- --

projects
Investment of excessive raised funds
None

Total -- 283,000 281,219.35 48,142.55 235,526.09 -- -- 5,198.11 -- --

Explain project by project the 1. Mainly due to the rising prices of raw materials, the impact of the economic downturn on consumption, etc., the Nantong Haid project, the Qingyuan
reasons for failing to reach the Haid project, the Zhaoqing Gaoyao project and the Huainan Haid project failed to meet the objectives with respect to output and sales volume. As such,
planned progress or predicted these projects failed to reach the predicted returns.

returns (including the reasons for 2. The Huai’an Hailong project, the Fuzhou Haid project, theYicheng Haid project, theYulin Haid project and the Sichuan Rongchuan project have been
inputting “N/A” for “Whether the partly put into production but not yet entirely completed. As such, these projects failed to reach the predicted returns. In view of the overall business and
estimated benefits are reached”) market layout priorities of the Company, the remaining raised funds have been reallocated to other projects.


3. The Qingyuan Hailong project was partly put into production in 2020 and entirely put into production in the second half of 2022. The Nanning Haid
project, the Hexian Haid project and the Jiangmen Rongchuan project were entirely completed and put into production in the second half of 2022,
indicating a short-term of operation.As such, these projects failed to reach the predicted returns.

4. The Yancheng Rongchuan project, the Pingnan Haid project, the Hexian High-end Aquatic Feed project, the Enshi Haid project and the Xingtai Haid
project are still under construction and not ready for production.

Explanations of the material N/A

changes in the project feasibility

Amount, use, and use progress of N/A

excessive raised funds

Applicable

Occurred during the reporting period

1. As reviewed at the 14th Meeting of the Fifth Board of Directors and the First Extraordinary General Meeting of Shareholders in 2021, it was approved
to changetheimplementation entitiesand locationsofthe “Qingyuan Haibei project”and the“ZhanjiangHaid project”. To bespecific, theimplementation
entities of “Qingyuan Haibei Biotechnology Co., Ltd.” and “Zhanjiang Haid Feed Co., Ltd.” were changed to “Jiangmen Rongchuan Feed Co., Ltd.” and
“Huainan Haid Biological Feed Co., Ltd.” respectively, and the implementation locations of “Qingyuan City, Guangdong Province” and “Zhanjiang City,
Guangdong Province” to “Duanfen Town, Taishan City, Guangdong Province” and “Shouxian County, Huainan City, Anhui Province” respectively.

Changes of implementation 2.As reviewed at the Fifth Meeting of the Sixth Board of Directors and the Fifth Extraordinary General Meeting of Shareholders in 2022, it was approved
locations of the investment to changetheimplementation entitiesand locationsofthe “Huai’anHailongproject”, the“Fuzhou Haid project”, the“YichengHaidproject”, the“Kaifeng
projects with the raised funds Haid project”, the “Yulin Haid project”, and the “Sichuan Rongchuan project”. To be specific, the implementation entities of “Huai’an Hailong Feed Co.,
Ltd.”, “Fuzhou Haid Feed Co., Ltd.”, “Yicheng Haid BiotechnologyCo., Ltd.”, “Kaifeng Haid Feed Co., Ltd.”, “Yulin Haid Feed Co., Ltd.”, and “Sichuan
Rongchuan Feed Co., Ltd.” were changed to “Yancheng Rongchuan Biotechnology Co., Ltd.”, “Pingnan Haid Feed Co., Ltd.”, “Hexian Haid
Biotechnology Co., Ltd.”, “Enshi Haid Biotechnology Co., Ltd.”, and “Xingtai Haid Biotechnology Co., Ltd.” respectively, and the implementation
locations of “Huai’an City, Jiangsu Province”, “Fuzhou City, Fujian Province”, “Yicheng City, Hubei Province”, “Tongxu County, Kaifeng City, Henan
Province”, “Yulin City, Guangxi Zhuang Autonomous Region”, and “Meishan City, Sichuan Province” to “east of Zhubao and west of Hengyiming,
Sheyang Port, Yancheng City, Jiangsu Province”, “Linjiang Industrial Park, Pingnan County, Guangxi Zhuang Autonomous Region”, “Taiwan Farmers'
Entrepreneurship Park in Hexian County, Anhui Province”, “Tukan Village, Changliang Town, Jianshi County, Hubei Province”, and “Nanhe District,
Xingtai City, Hebei Province” respectively.

Adjustments to the implementation

methods of the investment projects N/A

with the raised funds

Applicable

On 9April 2020, Grant Thornton China issued the Verification Report on the EarlyInvestment of Self-raised Funds in the Investment Projects with Raised
Early investment and replacement Funds by Guangdong Haid Group Co., Limited (《关于广东海大集团股份有限公司以自筹资金预先投入募集资金投资项目的鉴证报告》) (Grant
concerning the investment projects Thornton Zhuan Zi (2020) No. 440ZA4433). The Company invested RMB 393,920,200 of self-raised funds in the raised fund projects in the preliminary
with the raised funds stage. On 18April 2020, the Proposal on Replacing Self-raised Funds That Has Been Invested in Fund-raising Investment Projects with the Raised Funds
(《关于以募集资金置换预先已投入募集资金投资项目的自筹资金的议案》) on the Ninth Meeting of the Fifth Board of Directors. The Company
replaced the self-raised funds that had been invested with the raised funds of RMB 393,920,200. The interval between this replacement with raised funds
and the arrival of raised funds is shorter than six months.

Applicable

Temporary replenishment of The Proposal on Temporary Replenishment of Working Capital with Partial Idle Raised Funds (《关于使用部分闲置募集资金暂时补充流动资金的议
working capital with the idle 案》) was reviewed and approved on the Fifth Meeting of the Sixth Board of Directors on 12 December 2022. It was approved that the Company could
raised funds temporarily replenish working capital with no more than RMB 450 million of idle raised funds. The use term should be less than 12 months upon the
approval of the Board of Directors. As at 31 December 2022, the balance of the idle raised funds for temporary replenishment of working capital was


RMB 447.8581 million.

Surplus raised funds for project

implementation and reasons for the N/A

surplus

Use and ownership change of In addition to temporary replenishment of working capital and cash management, the unused amount of raised funds was deposited in the special bank
unused raised funds account for fund-raising projects.

Problems in the use of raised funds N/A

and disclosure, or other cases

(3) Altered projects of raised funds

Applicable □ Not applicable
Unit: RMB’0,000

Total The Accumulative Benefits Whether there
investment investment investment Investment progress Date when the recorded Whether the are material
Project after Previous project amount for amount amount as at the as at the end of the projects are during the estimated changes in the
alteration the project during the end of the reporting period (3) ready for their reporting benefits are feasibility of
after reporting reporting period ＝(2)/(1) intended use period reached the project after
alteration (1) period (2) alteration

Jiangmen Qingyuan Haibei 22,000 9,878.93 22,066.47 100.30% December 2022 -1,109.88 No No

Rongchuan project project and

Huainan Haid Zhanjang Haid 9,477.24 651.84 9,480.6 100.04% July 2021 -657.7 No No

project project

Yancheng Huai’an Hailong 10,500 0 0 0.00% December 2023 0 N/A No

Rongchuan project project, Fuzhou

Pingnan Haid Haid project, 5,767 0 0 0.00% June 2023 0 N/A No

project Yicheng Haid

Hexian Haid High- project, Kaifeng

end Aquatic Feed Haid project, 12,500 0 0 0.00% June 2024 0 N/A No

project Yulin Haid

Enshi Haid project project and 8,900 0 0 0.00% December 2023 0 N/A No

Xingtai Haid Sichuan

project Rongchuan 4,600 0 0 0.00% December 2023 0 N/A No

project

Total -- 73,744.24 10,530.77 31,547.07 -- -- -1,767.58 -- --

1. The Jiangmen Rongchuan project and the Huainan Haid project:

(1) Decision-making procedure executed for the changes:

Reasons for the changes, decision-making procedure According to the Proposal on the Changes to Certain Raised Funds Investment Projects (《关于变更部分募集资金投资项目的
executed and information disclosed (by specific projects) 议案》) approved at the First Extraordinary General Meeting of Shareholders in 2021 on 3 February 2021, it has been agreed to
transfer the raised funds for the Qingyuan Haibei project and the Zhanjiang Haid project and the cash management income with
the Guangzhou branch of HSBC Bank (China) Company Limited to the Jiangmen Rongchuan project and the Huainan Haid

project.
(2) Reasons for the changes:

A. Previously, the Qingyuan Haibei project intended to build an annual capacity of 30,000 tons of aquatic premix with an
investment of RMB 216.0009 million. Due to reasons such as the adjustments to the industry’s farming scale and structure and
production areasaswell astheCompany’sconstant refinement ofitsproduct portfolio, theCompanychanged theQingyuan Haibei
project to other feed projects so as to better meet market needs and further refine the existing production capacity structure.

B. Previously, the Zhanjiang Haid project intended to build an annual capacity of 200,000 tons of aquatic compound feed with an
investment of RMB 220.9288 million to increase its supply to West Guangdong Province and East Guangxi Province. However,
the feed factory of Wuzhou Haid in East Guangxi Province has been completed, and construction accelerated for the raised funds
investment project of Nanning Haid with an annual output of 480,000 tons of feed, which will help ease the supply pressure in the
region to some degree. In view of the priority levels of the projects and the Company’s capacity portfolio needs, the Company
changed the Zhanjiang Haid project to other feed projects.

To sum up, in view of market needs and the Company’s capacity portfolio needs, and in order for better use of the raised funds,
the Company has changed the construction arrangements for the Qingyuan Haibei project and the Zhanjiang Haid project and has
decided to use the remaining raised funds for advance investment in the construction of the Jiangmen Rongchuan project and the
Huainan Haid project.
(3) Information disclosure:

For further information, see theAnnouncement on the Changes to Certain Raised Funds Investment Projects (《关于变更部分募
集资金投资项目的公告》) (Announcement No. 2021-008), which has been disclosed on the media designated for information
disclosure, namely, the SecuritiesTimes (《证券时报》), China Securities Journal (《中国证券报》), Shanghai Securities News
(《上海证券报》), Securities Daily (《证券日报》), and http://www.cninfo.com.cn.

2. The Yancheng Rongchuan project, the Pingnan Haid project, the Hexian Haid High-end Aquatic Feed project, the Enshi Haid
project, and the Xingtai Haid project:

(1) Decision-making procedure executed for the changes: According to the Proposal on the Changes to Certain Raised Funds
Investment Projects (《关于变更部分募集资金投资项目的议案》) approved at the Fifth Extraordinary General Meeting of
Shareholders in 2022 on 28 December 2022, it has been agreed to transfer part of the raised funds for the Huai’an Hailong project,
the Fuzhou Haid project, the Yicheng Haid project, the Kaifeng Haid project, the Yulin Haid project and the Sichuan Rongchuan
project to the Yancheng Rongchuan project, the Pingnan Haid project, the Hexian Haid High-end Aquatic Feed project, the Enshi
Haid project, and the Xingtai Haid project.

(2) Reasons for the changes: A. Previously, the Huai’an Hailong project intended to build an annual capacity of 200,000 tons of
aquatic compound feed with an investment of RMB 271.0012 million. In order to quickly relieve the supply pressure around
Huai'an City, the Company has purchased and immediately put into production an aquatic feed production base with an annual
capacity of 200,000 tons through its majority-owned subsidiary, Jiangsu Haiwei Feed Co., Ltd. In view of its capacity portfolio
needs, the Company reallocated the remaining raised funds of the Huai’an Hailong project to other feed projects. B. Previously,
the Fuzhou Haid project intended to build an annual capacity of 180,000 tons of aquatic compound feed with an investment of
RMB 345.4454 million. In the construction of the project, Fuzhou Haid adjusted the production capacity allocation standard to
enhance the capacity utilization rate; at the same time, based on the Company's market strategy adjustments, the central Fujian
market previously covered by Fuzhou Haid was shifted to Sanming Haid Feed Co., Ltd., making Fuzhou Haid basically able to
meetthedemandofthemarket withitsexistingproductioncapacity. InviewoftheprioritylevelsoftheprojectsandtheCompany’s
capacity portfolio needs, the Company reallocated the remaining raised funds of the Fuzhou Haid project to other feed projects.
C. Previously, the Yicheng Haid project intended to build an annual capacity of 380,000 tons of pig feed with an investment of
RMB 170.0014 million. The Yicheng Haid project mainly serves the Company's local farming business and the export market


within its radius. In recent years, the Company has improved the overall capacity utilization rate through regional capacity
integration, special line technical reform of specialization and standardization and other measures; and the new construction and
technical reform project of Anlu Haid in the peripheral market of the region has been put into operation, which has eased the
supply pressure of the peripheral pig feed market. In view of the priority levels of the projects and the purpose to increase the
utilization efficiency of raised funds, the Company reallocated the remaining raised funds of the Yicheng Haid project to other
feed projects. D. Previously, the Kaifeng Haid project intended to build an annual capacity of 300,000 tons of animal, poultry and
aquatic compound feed with an investment of RMB 180.0025 million. In order to quickly relieve the supply pressure, the
Company's subsidiaries, Henan Haiding and Henan Mugaole, have added approximately 300,000 tons of feed production capacity
in Kaifeng City and the surrounding areas through leasing and renovation and expansion of their own feed production lines
respectively. In view of its capacity portfolio needs, the Company reallocated the remaining raised funds of the Kaifeng Haid
project to other feed projects. E. Previously, theYulin Haid project intended to build an annual capacity of 450,000 tons of animal,
poultry and aquatic compound feed with an investment of RMB 311.8661 million, which fills the gap in the market from western
Guangdong to eastern Guangxi, southern Guangxi and western Guangdong and can effectively relieve the Company's tight supply
in the region. Given that the Company's feed mills built or acquired in the areas adjacent to Yulin, such as Nanning and Qinzhou,
have been gradually put into operation, the tight supply in the target project area has been alleviated. In view of its capacity
portfolio needs and the purpose to increase the utilization efficiency of raised funds, the Company reallocated the remaining raised
fundsoftheYulin Haidprojecttootherfeed projects.F.Withtheimplementation locationbeinginMeishan City, SichuanProvince,
the Sichuan Rongchuan project previously intended to build an annual capacity of 200,000 tons of aquatic compound feed with an
investment of RMB 234.3164 million to increase the aquatic feed supply capacity in the southwest region. Given that the
Company’s expanded and new feed projects have been gradually put into operation in the areas around Meishan such as
Chongqing, Chengdu and Deyang, effectively supplementing the supply capacity in the southwest region and the central Sichuan
region. In view of its capacity portfolio needs and the purpose to increase the utilization efficiency of raised funds, the Company
reallocated the remaining raised funds of the Sichuan Rongchuan project to other feed projects. To sum up, in view of market
needs and the Company’s capacity portfolio needs, and in order for better use of the raised funds, the Company has changed the
construction arrangements for the Huai’an Hailong project, the Fuzhou Haid project, the Yicheng Haid project, the Kaifeng Haid
project, theYulin Haid project and the Sichuan Rongchuan project, and has decided to use the remaining raised funds for advance
investment in the construction of the Yancheng Rongchuan project, the Pingnan Haid project, the Hexian Haid High-end Aquatic
Feed project, the Enshi Haid project, and the Xingtai Haid project.

(3) Information disclosure:

For further information, see theAnnouncement on the Changes to Certain Raised Funds Investment Projects (《关于变更部分募
集资金投资项目的公告》) (Announcement No. 2022-099), which has been disclosed on the media designated for information
disclosure, namely, the SecuritiesTimes (《证券时报》), China Securities Journal (《中国证券报》), Shanghai Securities News
(《上海证券报》), Securities Daily (《证券日报》), and http://www.cninfo.com.cn.

1. The Jiangmen Rongchuan project was entirely completed and put into production in the second half of 2022, indicating a short-
term of operation. As such, this project failed to reach the predicted returns.

Cases and reasons for failing to reach the planned 2. Mainly due to the rising prices of raw materials, the impact of the economic downturn on consumption, etc., the Huainan Haid
progress or predicted returns (by specific projects) project failed to meet the objectives with respect to output and sales volume. As such, this project failed to reach the predicted
returns.

3. TheYancheng Rongchuan project, the Pingnan Haid project, the Hexian High-endAquatic Feed project, the Enshi Haid project
and the Xingtai Haid project are still under construction and not ready for production.

Explanation of material changes in the feasibility of N/A

projects after alteration


VIII. Disposal of Material Assets and Equity Interest

1. Disposal of material assets
□Applicable  Not applicable

The Company did not dispose of any material asset in the reporting period.

2. Disposal of material equity investments

□Applicable  Not applicable

IX. Analysis of major subsidiaries and investees

Applicable □ Not applicable

Major subsidiaries and investees accounting for over 10% of the net income of the Company

Unit: RMB’0,000

Name of Type of Principal Registere Operating Operating

company compan activities d Total assets Net assets income profit Net profit
y capital

Qingyuan Production and

Haibei sales of feed

Biotechnol Subsidi premix, 1,000.00 153,309.37 120,972.54 89,400.36 24,914.84 21,550.81
ogy Co., ary additives and

Ltd. veterinary

medicines

Acquisition and disposal of subsidiaries during the reporting period

Applicable □ Not applicable

Methods to acquire and Impact on overall production and

Name of companies dispose of subsidiaries operation and results

during the reporting period

Suixi Haihe Veterinary Medicine Co., Business combination not under No material effects on the results of the

Ltd. common control period

Yangchun Haihe Veterinary Medicine Business combination not under No material effects on the results of the

Co., Ltd. common control period

Luoding Haihe Veterinary Medicine Co., Business combination not under No material effects on the results of the

Ltd. common control period

Bobai Haihe Veterinary Medicine Co., Business combination not under No material effects on the results of the

Ltd. common control period

Changde Haide Veterinary Medicine Business combination not under No material effects on the results of the

Operation Co., Ltd. common control period

Shouguang Haihe Agriculture and Newly established No material effects on the results of the

Animal Husbandry Technology Co., Ltd. period

Qingdao Zhizhuxia Experimental Newly established No material effects on the results of the

Technology Co., Ltd. period

Qianjiang Hailong Biotechnology Co., Newly established No material effects on the results of the

Ltd. period

Haid Egypt Aquatic Co., Ltd. Newly established No material effects on the results of the

period

Guangzhou Hairong Food Co., Ltd. Newly established No material effects on the results of the

period

Pingjiang Bairuilai Biotechnology Co., Newly established No material effects on the results of the

Ltd. period

Guangdong Baishengyuan Aquatic Seed Newly established No material effects on the results of the

Co., Ltd. period

Guangzhou Nansha Haishengyuan Newly established No material effects on the results of the

Aquaculture Technology Co., Ltd. period


Guangzhou Nansha Haid Technology Newly established No material effects on the results of the

Co., Ltd. period

Pt Haida Biotechnology Indonesia Newly established No material effects on the results of the

period

Zhuhai Chenzhe Private Fund Newly established No material effects on the results of the

Management Co., Ltd. period

Meizhou Yitun Pig Breeding Co., Ltd. Newly established No material effects on the results of the

period

Tacheng Xiyu Haisheng Agricultural Newly established No material effects on the results of the

Development Co., Ltd. period

Guiyang Haiyue Feed Technology Co., Newly established No material effects on the results of the

Ltd. period

Guangzhou Haiyi Investment Co., Ltd. Newly established No material effects on the results of the

period

Dongying Haishengyuan Aquaculture Newly established No material effects on the results of the

Co., Ltd. period

Leizhou Yuexiu Haishengyuan Shrimp Newly established No material effects on the results of the

Culture Technology Co., Ltd. period

Guangzhou Haifeng Breeding Service Newly established No material effects on the results of the

Co., Ltd. period

Haixin Biological (Beijing) Technology Newly established No material effects on the results of the

Co., Ltd. period

Nantong Fengmu Trade Co., Ltd. Newly established No material effects on the results of the

period

Dalian Haixin Biotechnology Co., Ltd. Newly established No material effects on the results of the

period

Sichuan Haimufeng Agriculture Co., Ltd. Newly established No material effects on the results of the

period

Inner Mongolia Haishan Feed Co., Ltd. Newly established No material effects on the results of the

period

Guangxi Haijingzhou Marine Newly established No material effects on the results of the

Biotechnology Co., Ltd. period

Heyuan Yifu Agricultural Development Newly established No material effects on the results of the

Co., Ltd. period

Foshan RongdaAquatic Seed Co., Ltd. Newly established No material effects on the results of the

period

Weifang Haixin Biotechnology Co., Ltd. Newly established No material effects on the results of the

period

Yangling Haiqi Agricultural Technology Newly established No material effects on the results of the

Co., Ltd. period

Yangling Huashite Testing Technology Newly established No material effects on the results of the

Co., Ltd. period

Yangjiang Peiqi Breeding Service Co., Newly established No material effects on the results of the

Ltd. period

Tangshan Haijingzhou Biotechnology Newly established No material effects on the results of the

Co., Ltd. period

Guangzhou Ronghai Seed Technology Newly established No material effects on the results of the

Co., Ltd. period

Guangze Haisheng Biotechnology Co., Newly established No material effects on the results of the

Ltd. period

Guangzhou Hualaike Testing Technology Newly established No material effects on the results of the

Co., Ltd. period

Weifang Yitun Ecological Agriculture Newly established No material effects on the results of the

Co., Ltd. period

Qingdao Dinghao Fengying International Newly established No material effects on the results of the

Trade Co., Ltd. period

Dachuan Biotechnology Co., Ltd. Newly established No material effects on the results of the

period

Shenzhen Haixin Biotechnology Co., Newly established No material effects on the results of the

Ltd. period

Huaibei Haid Bio-Feed Co., Ltd. Newly established No material effects on the results of the

period

Wudi Haishengyuan Aquaculture Co., Newly established No material effects on the results of the

Ltd. period

Sheng Long Biotech (Hai Duong) Newly established No material effects on the results of the

International Co., Ltd. period


Pt Hisenor Genetics Indonesia Newly established No material effects on the results of the

period

Hengyang Yunyi Biotechnology Co., Obtained in other ways No material effects on the results of the

Ltd. period

Guangzhou Mingersi Biotechnology Co., Obtained in other ways No material effects on the results of the

Ltd. period

Huizhou Haid Biotechnology Co., Ltd. No material effects on the results of the

(formerly known as “Boluo Changshun Obtained in other ways period

Feed Co., Ltd.”)

Lianzhou Yitun Ecological Agriculture De-registered No material effects on the results of the

Co., Ltd. period

Jiaozuo Jinhuilong Biotechnology Co., De-registered No material effects on the results of the

Ltd. period

Wengyuan Haifeng Ecological De-registered No material effects on the results of the

Agriculture Co., Ltd. period

Qingyuan Haichuan Food Co., Ltd. De-registered No material effects on the results of the

period

Yingde Haifeng Ecological Agriculture De-registered No material effects on the results of the

Co., Ltd. period

Yangjiang Haihe Feed Co., Ltd. De-registered No material effects on the results of the

period

Henan Haihe Houyi Agriculture and De-registered No material effects on the results of the

Animal Husbandry Technology Co., Ltd. period

Chengnan Development Zone Hairong No material effects on the results of the

Livestock Farming Service Specialized De-registered period

Cooperative

Dancl Limited De-registered No material effects on the results of the

period

Foshan Debao Feed Co., Ltd. De-registered No material effects on the results of the

period

Qingdao Zhizhuxia Pig Raising Service De-registered No material effects on the results of the

Co., Ltd. period

Zhangzhou Longwen Hairong Farming De-registered No material effects on the results of the

Service Specialized Cooperative period

Jiyuan Haihe Jinyu Feed Co., Ltd. De-registered No material effects on the results of the

period

Huai’an Haichang Feed Co., Ltd. De-registered No material effects on the results of the

period

Qingyuan HainongAgriculture and De-registered No material effects on the results of the

Animal Husbandry Co., Ltd. period

Hisenor Viet Nam De-registered No material effects on the results of the

Aquatic Breeding Co., Ltd. period

Sheng Long Bio-Tech Co., Ltd. (Taiwan) De-registered No material effects on the results of the

period

Xinxing Haifeng Agriculture andAnimal De-registered No material effects on the results of the

Husbandry Co., Ltd. period

Huaihua Hailong Biotechnology Co., De-registered No material effects on the results of the

Ltd. period

Coreseed Aquaculture (Guam) Exited No material effects on the results of the

Corporation period

Description of major subsidiaries and investees

QingyuanHaibeiBiotechnologyCo.,Ltd.ismainlyengagedinfeedpremix,feedadditivesandveterinarymedicines,
and its products are mainly sold to internal companies, farmers and dealers. The gross margin level of Qingyuan
Haibei's products is higher than that of the Company's compound feed products, and it achieved a net profit of RMB
216 million (including internal and external sales) during the reporting period.

X. Structured Entities Controlled by the Company

□Applicable  Not applicable


XI.Prospects for the development of the company

1.Industry landscape and trends

The 14th Five Year Plan (2021-2025) is the first five years to embark on the new journey of comprehensively
building a socialist modernized country. The Central Committee of the Communist Party of China and the State
Council's Opinions on Comprehensively Promoting Rural Revitalization and Accelerating Agricultural and Rural
Modernization (hereinafter referred to as the Rural Revitalization Opinions) was proposed to enhance the supply
guarantee capacity of grain and important agricultural products and to accelerate the construction of a modern
aquaculture system. The aquaculture industry will develop towards standardization, industrialization and scaled.
With the acceleration of intelligent, the feed industry will enter the stage of high-speed integration, and the
advantages and position of the industry leaders are increasingly prominent.

1. Structural Development of the Feed Industry

The feed industry is expected to grow steadily, but the growth rate will decrease and there will be differences in the
growth structure of different varieties. With the continuous growth of per capita disposable income, upgrading of
consumption, improvement of urbanization level, and the transformation of consumption concepts, the demand for
high-quality, distinctive, andhigh-standard meatproductswill increase, the consumption of specialaquatic products
and beef and mutton meat will increase significantly, and the consumption of meat and poultry/egg poultry will be
stable. The consumption of pork will decrease, and various feed varieties will also show structural adjustments.

2. Further intensification of industry integration and increasing international competitiveness

The total growth of feed has slowed down, and the industry has entered the stock game stage with more intense
competition among feed companies. Due to various factors such as overcapacity, meager profits, significant
fluctuations in raw materialprices, strictenvironmentalregulations, and improved biologicalprevention and control
safety in the feed industry, a large number of small and medium-sized feed enterprises will have to withdraw. For
large enterprises with strong comprehensive strength, outstanding industrial chain product strength, and advantages
in scale, management, technology, talent and other aspects, there will be more opportunities for integrating the
market. At the same time, regional expansion and extension will become important development strategies. The
leading enterprises will use their scale and technological advantages to rapidly expand into emerging markets such
as Southeast Asia, Northeast Asia, and Africa, increasing their international competitiveness.

3. Technology driving industry progress is more evident

The differentiation and integrated development of the feed industry have made the role of technology increasingly
important in industry competition. The global correlation of agricultural products is becoming increasingly close,
and some regions' weather conditions and uncertainty in international trade relations can cause significant
fluctuations in agricultural product prices. Animal nutrition demand, feed formula adjustment, and raw material
substitution technology are all core areas of feed technology competition. The optimization and alternation of
downstream aquaculture models, as well as the richness and diversity of aquaculture varieties, have put forward
higher requirements for the adaptability of feed products. Technological research and development drive feed
products in respond to the needs of farmers in a timely manner, becoming an important competitive point. At the
same time, the innovation and developmentof feedproducts will also lead theupgrading ofdownstreamaquaculture.
For example, the flourishing development of biological feed technology, the increasing variety of feed
microorganisms, enzyme preparations and other products, as well as the continuous expansion of functions, will
show great potential in promoting the replacement of feed antibiotics and the efficient utilization of feed resources,
which will become new competitive barriers in the industry.

4.Theseedlingandanimalprotectionindustrieswillgrowrapidlyoveralongperiodoftimeduetothetechnological
progress and the upgrading of aquaculture

The Ministry of Agriculture and Rural Affairs of China has proposed to deepen the implementation of the seed
industry revitalization action, solidly promote the protection and utilization of germplasm resources and the
innovation in the seed industry, upgrade the seed industry base, support seed industry enterprises, and purify the
seed industry market, and accelerate the promotion of seed industry technology self-reliance and the controllability

of seed sources. High quality animal seedlings will have a huge demand for the development in the long term, and
factors such as resources, technology, and talent will gather in key seed source advantage enterprises. With the
upgrading of the aquaculture industry, the enhancement of farmers' discrimination ability, and the implementation
of national aquatic seedling inspection and quarantine access, the seedlings will enter the process of industry
integration and reshuffle. The demand for nationally recognized high-quality brand seedlings will rapidly increase,
and the value of aquatic seedlings in the aquaculture industry chain will also become increasingly apparent,
including production/disease resistance/aquaculture and other production and profit links. With the acceleration of
the trend of large-scale and centralized aquaculture, corresponding to higher biological epidemic prevention costs,
the space for animal healthcare industry is expanding upwards. At the same time, the industry implements the new
version of GMP requirements, and large enterprises with advantages such as scale, technology, and talent will
benefit from it, gradually gathering market share to top enterprises.

5. The aquaculture industry will accelerate towards scale, efficiency, and intelligence

Due to factors such as land constraints, food safety, industrial technological progress, and increasingly young
employees, the aquaculture industry will rapidly develop towards industrialization, scale, and intelligence. At
present, the large-scale of poultry farming has been formed, and the threshold for the scale is constantly increasing.
Pig farming is rapidly completing its large-scale process due to the impact of African swine fever. The scale of
aquaculture is relatively slow due to difficulties in concentrating water resources. The overall funding of the
aquaculture industryis short, and excellentlisted companies in the industryare increasing their industrialexpansion.
Large real-estate and technology companies are also using their own advantages to enter the aquaculture field.
Excellententerprisesareempoweringautomation,digitization,andintelligenceintheprocessofbringingmanpower,
technology, and management to the aquaculture industry. Meanwhile, various funds have rushed into the
aquaculture industryin recentyears, leading to thesharpincrease inaquaculture production capacity. Thekeypoints
of competition have shifted to management, cost, and efficiency advantages during the aquaculture process.

6. More comprehensive and in-depth development of the industrial chain

The demand for green and safe food will promote the construction of food traceability system and agricultural
standardization system. Large and excellent enterprises with technology, talent, and financial advantages will
gradually improve their industrial chain layout in connecting the industrial chain and have the ability to control full
business processes, including seedlings, breeding, feed, animal protection, transportation, food processing et al,
which will further reversely promote more efficient and in-depth industrial chain layout of large and excellent
enterprises. Food safety also forces large-scale enterprises in the industry's production process to engage in
professional docking, ensuring that every production process is safe, controllable and traceable, promoting more
aggregation of industry chain business, and accelerating industry integration.

2.Future development prospects of the company

1. The company's development strategy is to become the leading and sustainable high-tech agricultural and animal
husbandry company in China. The foundation of company development is based on "creating value for customers".
The company focuses on the upstream and downstream of aquaculture, seedling, animal healthcare, feed,
aquaculture, slaughtering, food processing and other links, building the leading industry to provide comprehensive
solutions for farmers including feed, seedling, animal healthcare, and aquaculture technology services, as well as
other needs of farmers and distributors, effectively improving the profitability of the company's farmers and
distributors, and realizing the win-win development mode between the company and customers.

2. The basic strategy for the development of the company's industrial chain is to scale up based on specialization
and extend the industrial chain based on core competitiveness. The company will focus on feed products as its core
business, while actively developing businesses such as seedling, animal protection, aquaculture, circulation, and
food processing to cultivate the company's professional capabilities throughout the entire industrial chain and build
a comprehensive core competitiveness in the industrial chain.

3. The company's business development plan. The future development focus of the company will still revolve
around the needs of the aquaculture sector, providing overall solutions for farmers, and further expanding the sales
scale and profitability of the company's feed, seedlings, and animal healthcare products. At the same time, the
company maintains an appropriate scale of pig and aquatic farming, and resolutely strengthens the professional
capacity of farming business.

(1) The feed business is the company's core business, and the company's feed sales target for the next few years is
40 million tons. In 2021, the companyformulated an equity incentive plan that includes more than 4000 employees.
The annual feed sales growth target is no less than 3.2 million tons and increases year by year, with the compound
growth rate of about 20%, which is much higher than the growth rate of the feed industry and peer listed companies
in the industry in recent years, and also significantly higher than the growth rate of the company in previous years.
If the company's feed sales target can be successfully achieved, the company's market share will significantly
increase, and the product competitive advantage will become more obvious. The company will have sustained and
strong competitive advantages.

(2) Providing overall solutions for farmers must rely on seedlings and animal healthcare. At present, the company
hasbecometheleaderintheindustryofaquaticseedlingsandaquatichealthcare,withsalesscaleandproducteffects
leading the industry. Especially in recent years, the products of South American white shrimp seedlings have
consistently performed well and have been widely recognized by farmers. This not only allows farmers to
significantly increase their breeding profits, but also drives the growth of the company's feed sales. The company
will continue to increase research and the development of seedlings and business cooperation, gradually expanding
the advantages of seedlings to fish and pig varieties. In terms of animal healthcare business, the company will
continue to upgrade and iterate the service model of existing animal healthcare service stations, providing not only
high-quality animal healthcare products for farmers, but also comprehensive breeding technology services, and the
actual needs of farmers with additional value-added products and services to create unique technology hosting
platform.

(3) The aquaculture business adheres to scale based on specialization. Developing aquaculture business can deepen
the company and team's understanding of aquaculture needs and provide a large number of high-quality service
talents for feed, seedling, and animal healthcare businesses. At the same time, the aquaculture business is also
required link for the company to further expand and develop the downstream of the industrial chain in the future,
such as food processing business. In the future, the company hopes to provide healthy and traceable ingredients for
the people. The professional abilities in the breeding process must be established, and the size can be controlled at
an appropriate scale. The aquaculture business includes live pigs and aquatic products and will focus on aquaculture
where the company has established system advantages, such as factory shrimp farming. The development of
aquaculture business must adhere to scale based on specialization with mainly building the professional capabilities
of the team.

XII. Reception of research investigations, communications and interviews during the reporting
period
Applicable □ Not applicable

Main

Reception Type of Communicati discussions Index to basic information on
Date Place method communic on party and communication

ation party information

provided

For details, please refer to the
The Table of Investor Relations

Company Bosera Funds, Company’s Activity Records (2022-001)
12 April 2022 Conference By phone Institution GF Securities, annual (《投资者关系活动记录表

Room Harvest Fund, operating （2022-001）》) published on
etc. results the website of

www.cninfo.com.cn on 14 April
2022

The investors The For details, please refer to the
Company participating Company’s Table of Investor Relations

20 April 2022 Conference Other Other in the operations and Activity Records (2022-002)
Room interaction of development (《投资者关系活动记录表

"Panorama strategy （2022-002）》) published on
Road Show"


the website of

www.cninfo.com.cn on 21 April
2022

For details, please refer to the
PalaceAsset The Table of Investor Relations

Company Management, Company’s Activity Records (2022-003)
27 May 2022 Conference Other Institution New Top- operations and (《投资者关系活动记录表

Room Founder, development （2022-003）》) published on
Fidelity, etc. strategy the website of

www.cninfo.com.cn on 30 May
2022

UBS SDIC For details, please refer to the
Fund, The Table of Investor Relations

Company Shanghai Company’s Activity Records (2022-004)
30 August 2022 Conference By phone Institution Orient interim (《投资者关系活动记录表

Room Securities, operating （2022-004）》) published on
CITIC results the website of

Securities, etc. www.cninfo.com.cn on 31

August 2022

Conference For details, please refer to the
Room of IDG Capital, The Table of Investor Relations

Qingyuan Red Gate Company’s Activity Records (2022-005)
6 September Ronghai Field Institution Asset operations and (《投资者关系活动记录表

2022 Breeding research Management, development （2022-005）》) published on
Technology UBS, etc. strategy the website of

Co., Ltd. www.cninfo.com.cn on 7

September 2022

For details, please refer to the
The investors The Table of Investor Relations

Company participating Company’s Activity Records (2022-006)
22 September Conference Other Other in the operations and (《投资者关系活动记录表

2022 Room interaction of development （2022-006）》) published on
"Panorama strategy the website of

Road Show" www.cninfo.com.cn on 23

September 2022

Guotai Junan

Securities,

Guangzhou

Ruimin For details, please refer to the
Private Table of Investor Relations

Securities The Activity Records (2022-007)
22 September Company Investment Company’s (《投资者关系活动记录表

2022 Conference Other Other Fund, operations and （2022-007）》) published on
Room Shenzhen development the website of

Qianhai strategy www.cninfo.com.cn on 26

Jiuchuang September 2022

United Private

Securities

Investment

Fund, etc.

For details, please refer to the
GF Securities, Table of Investor Relations

Company CITIC The Activity Records (2022-008)
21 October Conference By phone Institution Securities, Company’s (《投资者关系活动记录表

2022 Room Shanghai Q3 operating （2022-008）》) published on
Orient results the website of

Securities, etc. www.cninfo.com.cn on 25

October 2022

Section IV. Corporate Governance
I Overview

1. The Establishment of the Company System

From the listing of the Company to the end of the Reporting Period, the Company strictly complied with the
Company Law (《公司法》), the Securities Law (《证券法》), the Stock Listing Rules of Shenzhen Stock
Exchange (《深圳证券交易所股票上市规则》), the Guidelines No. 1 of the Shenzhen Stock Exchange for the
Self-regulation of Listed Companies—the Standard Operation of Main Board Listed Companies (《深圳证券交易
所上市公司自律监管指引第 1 号--主板上市公司规范运作》), and the laws and regulations and normative
documents and the Articles of Association, continued to improve the Company's internal corporate governance
structure, refine internal control environment, improve internal management policies, standardize corporate
operation, and strive to improve the Company's capability of governance. The actual situation of the corporate
governance conformed to the requirements of relevant normative documents issued by the China Securities
Regulatory Commission (CSRC) and Shenzhen Stock Exchange on the governance of listed companies.

2. Shareholders and General Meeting of Shareholders

During the reporting period, the Company strictly adhered to applicable laws and regulations such as the Company
Law(《公司法》),theArticlesofAssociation(《公司章程》),andtheRulesofProcedureoftheGeneralMeeting
of Shareholders (《股东大会议事规则》), as well as the Company’s internal control rules, and standardized the
convening, holding and voting procedures of the General Meeting of Shareholders to ensure that all shareholders
could be equal, and fully exercise their rights. In addition, as witnessed by the hired lawyers, the legitimacy of the
meeting’s convening, holding and voting procedures could be guaranteed, and relevant legitimate rights and
interestsoftheCompanyanditsshareholderscouldbesecuredaswell.In2022,sixgeneralmeetingsofshareholders
were convened and held by the Board in total; the convening, holding and voting procedures of such meetings were
witnessed by the lawyers and all were legal and valid.

3. Directors and the Board of Directors

StrictlyinaccordancewiththeCompanyLaw(《公司法》),theArticlesofAssociation(《公司章程》),theRules
of Procedure of the Board of Directors (《董事会议事规则》) and the Independent Director System (《独立董事
制度》), the Company has elected and appointed various directors, and such election and appointment procedures
are open, fair and just. Besides, the composition and number of directors meet relevant legal and regulatory
requirements. The members for the Company’s Sixth Board of Directors are all nominated, approved and elected
by the Board of Directors by means of the cumulative voting system. Currently, there are 7 directors, including 3
independent directors. Independent directors occupy more than one third of all directors and their qualifications are
in accordance with the Rules for Independent Directors of Listed Companies (《上市公司独立董事规则》).

All directors of the Company have performed their duties in strict compliance with relevant laws, regulations, and
regulatorydocuments, attended all board meetings andcarried out related works in aserious andresponsiblemanner,
and firmly conformed to any statement and commitment made by directors. However, independent directors have
full right to know about the Company’s major issues and can issue independent opinions on major issues without
being influenced.

The Board of Directors has established the Audit Committee, the Remuneration and Appraisal committee, the
Strategy Committee and the Nomination Committee. Each committee can exercise its functions in accordance with
its work rules and make due contributions to the standardization of corporate governance. In the meantime, the
Board of Directors is able to carry out its work in strict accordance with relevant laws and regulations. All directors
of the Company are honest and trustworthy, diligent and responsible, attend corresponding board meetings and
shareholders’ general meetings with a serious attitude, actively participate in relevant training, and are familiar with
relevant laws and regulations.

4. Supervisors and the Supervisory Committee


The Company has strictly observed the Company Law (《公司法》), the Articles of Association (《公司章程》),
andotherrelevantregulationstoappointsupervisors.TheSixthSupervisoryCommitteeconsistsofthreesupervisors,
including two shareholder supervisors and one employee supervisor. The number and composition of the
Supervisory Committee meet relevant requirements stipulated in applicable laws and regulations. However, the
shareholder representative supervisors are elected by adopting the cumulative voting system, and the employee
supervisors are elected and appointed bymeans of the employees’ assembly in the formof secretballot. The number
of supervisors that served as directors or senior management personnel of the Company in recent two years does
not exceed one half of the total number of supervisors of the Company, and the number of supervisors nominated
by a single shareholder does not exceed one half of the total number of supervisors of the Company.

The Company’s supervisors can earnestly fulfill their responsibilities in accordance with the Rules of Procedure of
the SupervisoryCommittee (《监事会议事规则》), effectively supervise and inspectthe Company’s major issues,
related party transactions, the legality and compliance of duties performed by the Company’s directors and senior
management, and maintain legitimate rights and interests of the Company and its shareholders.

5. Internal Audit System

The Company has established the complete internal audit system and set up the internal audit department in charge
of the effective internal supervision of the Company’s daily operations.

6. Stakeholders

The Company fully respects and safeguards legitimate rights and interests of relevant stakeholders, realizes the
coordinated balance of interests of the society, shareholders, the Company, and employees etc., sincerely treats
suppliers and customers, earnestlycultivates everyemployee, develops the mutualbenefit and win-win cooperation
with relevant stakeholders, and jointly promotes the Company’s sustained, healthy and rapid development.

7. Information Disclosure and Transparency

Pursuant to relevant laws and regulations, as well as the Company’s Information Disclosure System (《信息披露
制度》) and Investor Relations Management System (《投资者关系管理制度》), the Company has disclosed
correspondinginformation in a true,accurate, complete and timelymanner to ensurethat all shareholdershave equal
access to such information.

The Chairman of the Board accepts primary responsibility for the management of information disclosure affairs.
The Company has designated the Board Secretary in charge of the Company’s information disclosure and investor
relations management, and the Securities Department serves as the executive department for information disclosure
and investor relations management. The Company pays special attention to communicate with investors and will
strengthen communication with investors by various means such as telephone, e-mail, and investor relations
interactive platform etc.
8. Investor Relations Management

The Company has always attached great importance to the management of investor relations, carried out related
works in accordance with the Investor Relations Management System (《投资者关系管理制度》) and other
systems, implemented the investor relations management by various means such as Shenzhen Stock Exchange
investor relations interactive platform, investor hot-lines, and reception of investors etc., strengthened the
communication with investors, and fully guaranteed the investors’ right to know.

The corporate governance is a systematic and long-term project that requires continuous improvement. After the
Company is successfully listed, it is willing to accept supervisions from all parties, adhere to the scientific outlook
ondevelopment,constantlyimprove thecorporategovernancesystem,andstrengthentheimplementationofvarious
laws and regulations to promote the healthy development of the Company and enhance the overall competitiveness.
9. Insider Information Management

According to the Company Law (《公司法》), the Securities Law (《证券法》), the Stock Listing Rules of

Shenzhen Stock Exchange (《深圳证券交易所股票上市规则》), the Guidelines No. 5 of the Shenzhen Stock
Exchange for the Self-regulation of Listed Companies—Management of Information Disclosure Affairs (《深圳证
券交易所上市公司自律监管指引第 5 号——信息披露事务管理》), theGuidelinesNo.1 of the Shenzhen Stock
Exchange for the Self-regulation of Listed Companies—the Standard Operation of Main Board Listed Companies
(《深圳证券交易所上市公司自律监管指引第 1 号--主板上市公司规范运作》), the Guidelines No. 5 for the
Regulation of Listed Companies—Establishment of Insiders Registration and Management System by Listed
Companies (《上市公司监管指引第 5 号——上市公司内幕信息知情人登记管理制度》) and other relevant
laws, regulations, and the Articles of Association (《公司章程》), the Company has established the Management
Systemfor Information Insider Registration (《内幕信息知情人登记管理制度》).The Companyproperlycarried
out corresponding information insider registration and reporting works strictly according to relevant requirements
and systems, and recorded and disclosed the list of all information insiders and material matter progress
memorandums in all the links of reporting, transmitting, preparation, resolution-making and disclosure before any
information was disclosed. During the Reporting Period, the Company notified all directors, supervisors, senior
management and relevant information insiders that they were not allowed to buy and sell the Company’s shares
within the window period by means of SMS and e-mail 30 days before the disclosure of annual and interim reports
and 10 days before the disclosure of quarterly reports, earnings forecast announcements and preliminary earnings
estimate announcements, and conducted an internal audit on the buying and selling of the Company’s shares by
directors, supervisors, senior management and relevant information insiders. During the reporting period, no
information insider was ever involved in the illegal buying and selling of the Company’s shares, and no relevant
personnel was suspected of being involved in insider trading and was imposed some supervision measures and
administrative penalties by competent regulatory departments.

Indicate whether there is any material incompliance with the applicable laws, administrative regulations and
regulations issued by the CSRC governing the governance of listed companies

□ Yes  No
No such incompliance.

II. The Company’s Independence from the Controlling Shareholder and the Actual Controller
in Asset, Personnel, Financial Affairs, Organizational Structure and Business

The Company has independent and complete businesses and independent management capabilities. It is completely
independent from the controlling shareholder in terms of asset, personnel, financial affairs, organizational structure
and business.

1. Asset: The property rights relationship between the Company and the controlling shareholder is clear. The
Companyhasindependentlanduserightsandhousingproperty.TheCompany'sassets areindependentlyregistered,
set up in accounting, accounted for, and managed so as to avoid the controlling shareholder's occupation for non-
operating purposes and allocation of the Company's assets or the intervention of the operation and management of
such assets.

2. Personnel: The Company has established an independent human resources system. The controlling shareholder
exercises its rights and assumes corresponding obligations in accordance with the law, and does not affect the
personnel appointment or dismissal of the listed Company, nor restricted the duty fulfillment of the directors,
supervisors, senior management or other personnel of the listed Company by means other than exercising
shareholder's rights specified in laws and regulations.

3. Financial affairs: The Company has set up a complete and independent financial institution with sufficient full-
timepersonnel,establishedanindependentaccountingsystemandfinancialmanagementsystem,setupindependent
bank accounts, independently paid taxes, allocated funds, and made financial decisions. As a result, the controlling
shareholder cannot intervene in the Company's financial management;

4. Organizational structure: The Company's Board of Directors, Supervisory Committee, and internal functional
departments can independently operate. There is no leader-member relation between the controlling shareholder
and internal institutions. The controlling shareholder did not directly or indirectly intervene in the Company's

decision-making and business activities without the General Meeting of Shareholders.

5. Business:The business structure of the Companyis independentand complete, which is of the business capability
of independent market orientation and management. There is no competition in terms of the Company's business
cope, business nature, customer objects, and product replaceability. In addition, the controlling shareholder cannot
harness its controlling position to the Company to try to gain the Company's business opportunities. Moreover, the
controlling shareholder cannotsubstitute the GeneralMeeting of Shareholdersand theBoard ofDirectors to directly
make major decisions for the listed company and intervene in the normal decision-making process of the listed
company.
III. Horizontal Competition
□Applicable  Not applicable

IV. Annual and Extraordinary General Meetings of Shareholders Convened during the
Reporting Period

1. General Meetings of Shareholders Convened during the Reporting Period

Investor Date of the

Meeting Type participati meeting Disclosure date Resolutions

on ratio

For details, see the Announcement on

Resolutions of 2021 Annual General

2021 Annual Meeting of Shareholders (《2021 年年度
General Meeting Annual 64.32% 9 May 2022 10 May 2022 股东大会决议公告》) (No. 2022-027)
of Shareholders disclosed on Securities Times, China

Securities Journal, Shanghai Securities
News, Securities Daily and

www.cninfo.com.cn

For details, see theAnnouncement on

Resolutions of First Extraordinary

First Extraordinary General Meeting of Shareholders of 2022
General Meeting Extraordi 73.18% 16 May 2022 17 May 2022 (《2022 年第一次临时股东大会决议公
of Shareholders of nary 告》) (No. 2022-030) disclosed on

2022 Securities Times, China Securities

Journal, Shanghai Securities News,

Securities Daily and www.cninfo.com.cn

For details, see theAnnouncement on

Second Resolutions of Second Extraordinary

Extraordinary General Meeting of Shareholders of 2022
General Meeting Extraordi 65.00% 2 June 2022 3 June 2022 (《2022 年第二次临时股东大会决议公
of Shareholders of nary 告》) (No. 2022-041) disclosed on

2022 Securities Times, China Securities

Journal, Shanghai Securities News,

Securities Daily and www.cninfo.com.cn

For details, see theAnnouncement on

Third Resolutions of Third Extraordinary

Extraordinary General Meeting of Shareholders of 2022
General Meeting Extraordi 61.96% 19 August 20 August 2022 (《2022 年第三次临时股东大会决议公
of Shareholders of nary 2022 告》) (No. 2022-063) disclosed on

2022 Securities Times, China Securities

Journal, Shanghai Securities News,

Securities Daily and www.cninfo.com.cn

Fourth For details, see theAnnouncement on

Extraordinary Resolutions of Fourth Extraordinary

General Meeting Extraordi 64.27% 7 November 8 November 2022 General Meeting of Shareholders of 2022
of Shareholders of nary 2022 (《2022 年第四次临时股东大会决议公
2022 告》) (No. 2022-092) disclosed on

Securities Times, China Securities


Journal, Shanghai Securities News,

Securities Daily and www.cninfo.com.cn

For details, see theAnnouncement on

Fifth Resolutions of Fifth Extraordinary

Extraordinary General Meeting of Shareholders of 2022

General Meeting Extraordi 63.56% 28 December 29 December (《2022 年第五次临时股东大会决议公

of Shareholders of nary 2022 2022 告》) (No. 2022-107) disclosed on

2022 Securities Times, China Securities

Journal, Shanghai Securities News,

Securities Daily and www.cninfo.com.cn

2. Extraordinary General Meetings of Shareholders Convened at Request of Preferred

Shareholders with Resumed Voting Rights
□Applicable  Not applicable

V. Directors, Supervisors and Senior Management

1. General Information

Openi Increa Decrea Other

Incu ng se in se in increa Closing Reasons
Office mbent Ge Starting date Ending date shareh Report Report se/dec sharehol for
Name title /Form nd Age of tenure of tenure olding ing ing rease ding share
er er (share Period Period (share (share) changes
) (share (share) )

)

Chair

Hua man Incu Ma 53 6 June 2007 18 August

Xue of the mbent le 2025

Board

Hua Presid Incu Ma 53 25 May 18 August

Xue ent mbent le 2010 2025

Vice

Yingzhu Chair Incu Ma 18 August

o Xu man mbent le 55 6 June 2007 2025

of the

Board

Qi Direct Incu Ma 16 July 18 August 70,00 Personal
Cheng or mbent le 43 2019 2025 0 17,500 52,500 financial
needs

Execu

Qi tive Incu Ma 16 July 18 August

Cheng Vice mbent le 43 2019 2025

Presid

ent

Xueqiao Direct Incu Ma 56 3 February 18 August 255,7 255,700

Qian or mbent le 2021 2025 00

Xueqiao Vice Incu Ma 16 July 18 August

Qian Presid mbent le 56 2019 2025

ent

Xueqiao Chief Incu Ma 18 August

Qian Engin mbent le 56 6 June 2007 2025

eer

Indepe

Jianfang ndent Incu Ma 67 16 July 18 August

Gui Direct mbent le 2019 2025

or

Indepe

Jianguo ndent Incu Ma 61 16 July 18 August

He Direct mbent le 2019 2025

or

Yunguo Indepe Incu Ma 57 16 July 18 August

Liu ndent mbent le 2019 2025


Direct

or

Zhenxio Super Incu Ma 53 6 June 2007 18 August

ng Qi visor mbent le 2025

Hua Super Incu Ma 16 18 August

Wang visor mbent le 36 November 2025

2020

Yongfan Super Incu Fe 16 18 August

g Mu visor mbent ma 34 November 2025

le 2020

Guoxian Vice Incu Ma 16 July 18 August 202,6 Personal
g Liu Presid mbent le 54 2019 2025 70 50,600 152,070 financial
ent needs

Shaolin Vice Incu Ma 16 July 18 August 330,9

Yang Presid mbent le 49 2019 2025 00 330,900

ent

Chief

Shaolin Financ Incu Ma 22 October 18 August

Yang ial mbent le 49 2012 2025

Office

r

Xiewu Vice Incu Ma 16 July 18 August 66,78 Personal
Jiang Presid mbent le 55 2019 2025 0 16,600 50,180 financial
ent needs

Guoche Vice Incu Ma 16 July 18 August 242,8 Personal
ng Mi Presid mbent le 51 2019 2025 00 60,700 182,100 financial
ent needs

Zhongz Vice Incu Ma 16 July 18 August 188,6 Personal
hu Chen Presid mbent le 53 2019 2025 70 47,100 141,570 financial
ent needs

Mingzh Vice Incu Ma 18 August

ong Presid mbent le 58 6 June 2007 2025

Chen ent

Jiantao Vice Incu Ma 19 August 18 August

Yang Presid mbent le 54 2022 2025

ent

Jing Vice Incu Fe 19 August 18 August

Wang Presid mbent ma 44 2022 2025 8,700 8,700

ent le

Zhijian Vice Incu Ma 26 July 18 August 412,2

Huang Presid mbent le 45 2012 2025 44 412,244

ent

Zhijian Board Incu Ma 26 July 18 August

Huang Secret mbent le 45 2012 2025

ary

Total -- -- -- -- -- -- 1,778, 0 192,50 0 1,585,96 --
464 0 4

Note: The opening shareholdings of Mr. Jiantao Yang and Ms. Jing Wang both refer to their shareholdings on 19

August 2022 when they were appointed as the sixth senior management of the Company.

Indicate whether any director, supervisor or senior management resigned before the expiry of their tenures during

the reporting period
□ Yes  No

Change in directors, supervisors and senior management

Applicable □ Not applicable

Name Office title Type of change Date Reason

Jiantao Yang Vice President Appointed 18 August 2022 Appointed by the

Board of Directors

Jing Wang Vice President Appointed 18 August 2022 Appointed by the

Board of Directors

2. Brief Biographies

Professional backgrounds, main working experience and current responsibilities in the Company of the incumbent
directors, supervisors and senior management:
(1) Directors

Mr. Hua Xue, born in 1970, holds a master’s degree and is an engineer. He graduated from College of Fisheries of
Huazhong Agricultural University in 1992 with a major in special aquaculture; in 1995, he obtained the master’s
degree in zoology from School of Life Sciences of Sun Yat-Sen University. He was/is the Chairman of China
Vocational Education Group of Modern Fishery, Vice Chairman of China Association of Young Rural
Entrepreneurial Leaders (CAYREL), Chairman of Guangdong Hi-tech Enterprise Association (GDHTEA), Vice
President of Guangdong Feed Industry Association, Vice Chairman of Guangdong Antibiotic-Free Feed Industry
Alliance, the NPC Member of the 16th National Congress of the Communist Party of Guangzhou, a member of the
11th Chinese People’s Political Consultation Conference Guangzhou Committee, Vice Chairman of the 15th
Executive Committee of Guangzhou Federation of Industry and Commerce, and HonoraryChairman of Guangzhou
Feed Profession Association (GZFPA). Meanwhile, he is recognized as “Leading Entrepreneur in China’s Feed
Industry” by the Ministry of Agriculture, and “Top 30 Excellent Entrepreneurs in China” by China Feed Industry
Association (CFIA). As one of the founders of the Company, he now serves as the Chairman of the Board and
President (General Manager) of the Company, as well as an Executive Director of the Company’s controlling
shareholder Guangzhou Haihao Investment Co., Ltd. Mr. Hua Xue holds 39.75% equity interests in the Company's
controlling shareholder Guangzhou Haihao Investment Co., Ltd. and is the actual controller of the Company.

Mr. Yingzhuo Xu, born in 1968, is a livestock specialist. He graduated from South China Agricultural University
in1991withabachelor'sdegreeinanimalhusbandry,andthenreceivedamaster’sdegreeinbusinessadministration
from HEC Paris. As one of the founders of the Company, he now serves as the Company’s Vice Chairman of the
Board, as well as the General Manager of the Company’s controlling shareholder Guangzhou Haihao Investment
Co., Ltd.

Mr. Qi Cheng, born in 1980, holds a master’s degree. He graduated from the major of Automation of Huazhong
University of Science and Technology in 2002; studied the major of World Economy in Sun Yat-sen University
from 2005 to 2008 and obtained the Master’s degree; studied EMBA in CEIBS from 2013 to 2015 and obtained
MBA. From2002 to 2010, he served as Process Engineer, Operation Manager, Supply Chain Manager and Director
of Technology in Guangzhou Procter & Gamble Co., Ltd.; from 2010 to 2017, he served as Operation Director of
East Asia-Pacific Region and Global Supply Chain Director in Essel Propack Co., Ltd. Joining the Company in
March 2017, he currently serves as a Director, an Executive Vice President (Deputy General Manager) (assisting
the President/General Manager in the overall operations of the Company), as well as the General Manager of the
South China Region of the Company.

Dr.XueqiaoQian,bornin1967,holdsadoctoratedegree.Hesuccessivelypresidedoverorparticipatedin theHubei
Provincial Natural Science Fund Project -- Development and Utilization of Feather Proteins in Fishery Feeds, the
development projects of the State Key Laboratory of Freshwater Ecology and Biotechnology -- Effects of Nutrition
Levels and Nutritional History on Fish’s Growth and Activities, Research on the Feeding Behavior and Chemical
Sensation of Allogynogenetic Crucian Carp, and Studies on the Utilization of Plant Protein by Main Cultured
Freshwater Fish, the NSFC Project -- Studies on the Comparative Nutritional Energetics of Feed Protein
Requirements of Carnivorous Fish and Omnivorous Fish, and the MOA’s 948 project -- Artificial Propagation and
Large-scale Aquaculture of Paddlefish etc.. Further, he has published more than 20 papers, of which, three papers
were published in international publications and included in SCI. He joined the Company in 2004 and is mainly
engaged in the aquatic animal nutrition and feed research and the development of new feed additives. Now, he is a
Director, Deputy General Manager (Vice President) (responsible for technology research and development and the
animalhealthcarebusiness),aswellastheChiefEngineeroftheCompany.HeisalsoaSupervisorintheCompany’s
controlling shareholder Guangzhou Haihao Investment Co., Ltd.

Dr. Jianfang Gui, born in 1956, holds a doctorate degree. He is a doctoral supervisor as well as an academician of
the Chinese Academy of Sciences and of The World Academy of Sciences. He graduated from the major of
CytobiologyofWuhanUniversityandobtainedtheBachelor’sdegreeinJanuary1982;obtainedtheMaster’sdegree
in Genetics from Wuhan University in December 1984 and joined in Institute of Hydrobiology, Chinese Academy

of Sciences in the same year and has since worked there. In 1995, he obtained the Doctor’s degree of science from
Institute of Hydrobiology, Chinese Academy of Sciences. From 1991 to 1994, he paid work visits and conducted
postdoctoral research in Medical College of Ohio and US San Diego. From 1995, he served as Researcher and
Doctoral Supervisor in Institute of Hydrobiology, Chinese Academy of Sciences. He served as Executive Deputy
Director and Director of Hydrobiology from 1999 to 2007, Director of
State Key Laboratory of Freshwater Ecology and Biotechnology from 2001 to 2011, and Independent Director of
the 1st and 2nd sessions of the Board of the Company from 2007 to 2013. Currently he serves as a research fellow
of the Institute of Hydrabiology, Chinese Academy of Sciences, and a Vice President of China Society of Fisheries.
He is an Independent Director of the Company.

Dr. Jianguo He, born in 1962, holds a doctorate degree. He is a professor, winner of “The National Science Fund
for Distinguished Young Scholars” and Chief Scientist of the State Shrimp and Crab Industry Technology System.
He graduated from the major of Zoology of Sun Yat-sen University and obtained the Doctor’s degree of science in
1990. He has been working in Sun Yat-sen University since 1991. He served as Deputy Director of College of Life
Sciences, Sun Yat-sen University from 2000 to 2008, and Director of College of Marine Science, Sun Yat-sen
University from 2008 to 2018. His current positions include Professor of Sun Yat-sen University, Director of State
Key Laboratory of Aquatic Animal Disease Prevention and Control and Healthy Farming, Director of China-
ASEAN Mariculture Technology “Belt and Road” Joint Laboratory, Deputy Director of Aquacultural Disease
Control Expert Commission of MARA, and Vice President of the Crustacean Branch of China Zoological Society.
He is an Independent Director of the Company.

Dr. Yunguo Liu, born in 1966, holds a doctorate degree in accounting from Xiamen University. He is a visiting
scholar at the University of Houston in the U.S., a National Baosteel Outstanding Teacher and a Guangdong
Province (Undergraduate) Teaching Master. His current positions and titles include Professor of Accounting and
Doctoral Supervisor in Sun Yat-sen Business School (SYSBS), Director of School of Accountancy in Guangzhou
Xinhua University (a private university), Senior Research Fellow of China Enterprise Reform and Development
Society, Member of Management Accounting Professional Committee of Chinese Accounting Society, Executive
Director of Cost Research Society of China, a management, accounting and consultancy expert of the Ministry of
Finance, Member of CGMA North Asian 100 Think Tank Leaders, Member of IMA Academic Consultation
Commission, Vice Chairman of the Advisory Branch of the China Association of Chief Financial Officers, Vice
Chairman of Guangdong Association of Management Accountants, Editorial Board Member of China Management
Accounting Studies, and Editorial Board Member of China Management Accounting Review. He has been selected
fortheAccountingMastersDevelopmentProgram(2019)oftheMinistryof Finance,theThirdBatchfortheSpecial
Support Program of the Ministry of Finance, and the Leading Accounting Talent Program (Phase I) of the Ministry
of Finance.Heisalsoan IndependentDirectorofGuangzhouHaigeCommunicationsGroupIncorporatedCompany.
He is an Independent Director of the Company.

(2) Supervisors

Dr. Zhenxiong Qi, born in 1970, is a senior engineer. He successively participated in a key program of National
Natural Science Foundation of China, the National Key Technologies R & D Program of China during the 8th Five-
Year Plan Period, National Climb—B Plan, and programs of the Shandong and Guangdong Provincial Natural
Science Funds. Meanwhile, he has also published many research papers, applied for multiple invention patents and
been granted a State Technological Invention Award (Second Prize). Since he joined the Company in 2004, he has
been mainly engaged in researches on animal nutrition and feed, aquatic farming and disease control. He is now the
Chief Engineer for the Company’s Functional Ingredients Development Platform Product Line, and the Chairman
of the Company’s Supervisory Committee.

Mr.HuaWang, born in1987,holdsa master’s degreeandis aneconomist. He majored in politics andadministration
and graduated from Southwest Jiaotong University in 2009. He obtained a professional master's degree in political
theory from Wuhan University in 2011. Hua Wang worked for China Tunnel Construction Co. Ltd. Guangdong
from July 2011 to March 2017, and worked for Guangdong Cinda Real Estate Co., Ltd. from June 2017 to March
2019. He joined the Company in April 2019, and currently serves as the Assistant to the Head of the Group's
Secretary Office, as well as a Supervisor of the Company.

Ms. Yongfang Mu, born in 1989, holds a bachelor’s degree and is an intermediate accountant. Yongfang Mu
graduated from Henan University of Economics and Law in June 2012, majoring in accounting. Joining the

Company in July 2012, she used to hold positions related to cost accounting, budget management and financial
management for the Company. She currently serves as the Financial Manager and a Supervisor of the Company.
(3) Senior Management

Mr. Guoxiang Liu, born in 1969, holds a bachelor’s degree and is a Vice Chairman of HubeiProvince Feed Industry
Association. He graduated from the Aquaculture Department of Huazhong Agricultural University in 1992,
majoring in special aquaculture professionalism. Joining the Company in 2004, he is now a Vice President (Deputy
General Manager) (responsible for the investment, construction and operation of the Company’s investment
projects), as well as the Central China General Manager of the Company.

Mr. Shaolin Yang, born in 1974, holds a master’s degree and is a senior accountant, certified public accountant, and
certified tax accountant. He graduated from Sun Yat-sen University with a major in Business Administration. From
2008 to 2012, he served as Executive Director, CFO and Joint Secretary of KEE Holdings Company Limited
(HK.02011). He has been selected for the high-tech enterprise review expert pool of the Department of Science and
Technology of Guangdong Province, and is a Vice Chairman of Guangdong Association of Management
Accountants. Since June 2016, he has acted as an extramural tutor for master’s degree students in accounting of Sun
Yat-sen Business School. Since 2021, he has been a tutor for master’s degree students in accounting of Guangdong
University of Foreign Studies. In 2012, he joined the Company and is currently the Company’s Vice President
(Deputy General Manager) (responsible for the Company’s finance, business finance and risk control) and CFO.
Mr. Xiewu Jiang, born in 1968, holds a bachelor’s degree and is an aquacultural engineer. He graduated from the
major of Special Aquaculture of College of Fisheries, Huazhong Agricultural University in 1992. He is Vice
Chairman of China Fisheries Association, Executive Chairman of the First Board of Directors of the Aquatic Seed
Branch of China Fisheries Association, Vice Chairman of Guangdong Ocean Association, Vice Chairman of the
Marine Animal Branch of Guangdong Ocean Association, and Honorary Chairman of Weifang Fisheries
Association. Currently, he serves as a Vice President (Deputy General Manager) (responsible for the aquatic seed
and aquaculture business) and General Manager of the Premix Division of the Company.

Mr. Guocheng Mi, born in 1972, holds a bachelor’s degree. He graduated from the major of Freshwater Fishery of
SouthwestAgriculturalUniversity.HejoinedtheCompanyin2010andcurrentlyservesasaVicePresident(Deputy
General Manager) (responsible for the pig farming business) and the General Manager of the Pig Farming Division
of the Company.

Mr. Zhongzhu Chen, born in 1970, holds a master’s degree. He joined the Company in 2004 and currently serves
as a Vice President (Deputy General Manager) (responsible for the aquaculture business) and the General Manager
of the Shrimp Feed Division of the Company.

Mr. Mingzhong Chen, born in 1965, holds a master’s degree. His current social titles include Vice President of
Guangzhou Municipal Agricultural Leading Enterprises Association, Vice President of the Standing Committee of
Panyu District Federation of Industry and Commerce of Guangzhou, Vice President of the three federations of
Guangzhou (including Guangzhou Industrial Economy Federation) and Executive Vice President of Nancun
General Chamber of Commerce of Panyu District, Guangzhou. He has won a number of honors and titles, such as
“Excellent Entrepreneur for Caring for Employees in Panyu District, Guangzhou”. He joined the Company in 2004
and currently serves as a Vice President (Deputy General Manager) of the Company, who is responsible for public
relations, brand image and promotion.

Mr. Jiantao Yang, born in 1969, holds an MBA degree from Hong Kong Baptist University. He joined the Company
in 2004 and currently serves as a Vice President (Deputy General Manager) of the Company, who is responsible for
raw material processing, sourcing & trading and supply chain management.

Ms. Jing Wang, born in 1979, graduated from the University of Science and Technology of China in 2001 with a
degree in Management Science and studied for an MBA at Cheung Kong Graduate School of Business from 2006
to 2008. From 2001 to 2006, she worked at Iflytek Co., Ltd., Shenzhen Bohua Consulting Co., Ltd., and Tencent
TechnologyCo., Ltd. Fromearly2008 to 2010, she worked as a consultant for IBM China. She joined the Company
in February 2012 and currently serves as a Vice President (Deputy General Manager) of the Company, who is
responsible for human resource management.


Mr. Zhijian Huang, born in 1978, is an accountant and holds a bachelor’s degree. He joined the Company in 2004
and is now a Vice President (Deputy General Manager) (responsible for securities affairs, investment and financing
and M&As), as well as the Board Secretary of the Company.

Posts concurrently held in shareholding entities

Applicable □ Not applicable

Remuneration
Shareholding Post held in Starting date of or allowance
Name entity shareholding entity tenure Ending date of tenure from

shareholding
entity

Guangzhou

Hua Xue Haihao Investment Executive director 27 September 2006 No

Co., Ltd.

Guangzhou

Yingzhuo Xu Haihao Investment General Manager 1 December 2021 Yes

Co., Ltd.

Guangzhou

Xueqiao Qian Haihao Investment Supervisor 1 December 2021 No

Co., Ltd.

Note N/A

Posts held concurrently in other entities

Applicable □ Not applicable

Remuneration
Name Other entity Post held in other Starting date of Ending date of tenure or allowance
entity tenure from the
entity

Guangdong

Hua Xue Aerocity Holding Director 21 January 2015 No

Co., Ltd.

Guangzhou

Hua Xue Huading Supervisor 19 May 2022 No

Investment

Holding Co., Ltd.

Guangzhou Huayu

Hua Xue Investment Co., Executive Director 14 December 2021 No

Ltd.

Zhuhai Fuheyan

Hua Xue Enterprise Supervisor 3 August 2022 No

Management Co.,

Ltd.

Zhuhai Haihao

Yingzhuo Xu Industrial Chairman of the 22 July 2020 No

Investment Co., Board

Ltd.

Guangdong

Yingzhuo Xu Haihaowan Executive Director 22 April 2020 No

Development Co.,

Ltd.

Guangzhou

Yingzhuo Xu Haihao Executive Director 29 April 2020 No

Biotechnology

Co., Ltd.

Guangzhou

Haoyue

Yingzhuo Xu Biotechnology Executive Director 29 May 2020 No

Development Co.,

Ltd.

Guangzhou

Yingzhuo Xu Zhuoling Executive Director 2 June 2021 No

Investment and Manager

Development Co.,


Ltd.

Guangzhou

Yingzhuo Xu Zhuoyi Investment Supervisor 4 June 2021 No

Development Co.,

Ltd.

Guangzhou

Yingzhuo Xu Zhuosheng Executive Director 8 June 2021 No

Investment and Manager

Holding Co., Ltd.

Guangzhou Huayu

Yingzhuo Xu Investment Co., Manager 14 December 2021 No

Ltd.

Guangzhou

Haihaowan

Yingzhuo Xu Business Executive Director 27 July 2022 No

Management Co.,

Ltd.

Guangzhou Huayu

Xueqiao Qian Investment Co., Supervisor 14 December 2021 No

Ltd.

Guangzhou

Xueqiao Qian Qingyuan Executive Director 25 February 2022 No

Investment Co.,

Ltd.

Institute of

Jianfang Gui Hydrobiology, Research fellow 1 August 1995 Yes

ChineseAcademy

of Sciences

Jianguo He Sun Yat-Sen Professor 1 December 1994 Yes

University

Bainong

Guochuang

Jianguo He (Beijing) Director 23 July 2019 Yes

Technology Co.,

Ltd.

Yunguo Liu Sun Yat-Sen Professor 1 December 1999 Yes

University

Guangzhou Haige

Communications Independent

Yunguo Liu Group Director 1 December 2022 Yes

Incorporated

Company

Guangzhou

Guoxiang Liu Qingyuan Supervisor 25 February 2022 No

Investment Co.,

Ltd.

Sun Yat-Sen Extramural Tutor

Shaolin Yang University for master’s degree 5 June 2016 5 June 2028 Yes

students

Guangdong Tutor for master’s

Shaolin Yang University of degree students 1 January 2021 1 January 2025 Yes

Foreign Studies

Guangdong

Shaolin Yang Association of Vice Chairman 1 October 2021 1 October 2027 No

Management

Accountants

Guangzhou

Xiewu Jiang Haishengyuan Executive Director 27 January 2022 No

Investment Co.,

Ltd.

Wujiaqu Tycoon

Jiantao Yang Plant Protein Co., Director 19 October 2020 No

Ltd.

Alaer Ruiliheng

Jiantao Yang Biological Protein Director 26 October 2016 No

Co., Ltd.


Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors
and senior management as well as those who left in the Reporting Period

□Applicable  Not applicable

3. Remuneration of Directors, Supervisors and Senior Management

Decision-making procedure,determination basis and actualpayments of remuneration for directors, supervisors and
senior management

The Company has formulated the Remuneration and Appraisal Management System for Directors, Supervisors and
Senior Management (《董事、监事和高级管理人员薪酬与考核管理制度》) in accordance with national laws
and regulations and taking into account its actual situation. The general meeting of shareholders, as the highest
authority of the Company, is responsible for considering and approving the implementation, changes and
termination of the remuneration and appraisal system.

The Company has formulated the Remuneration Plan for Directors and Senior Management (《公司董事和高级
管理人员薪酬方案》) and the Allowance Plan for Supervisors (《公司监事津贴方案》): non-independent
directors do not receive director's allowance in the Company; independent directors adopt an annual allowance
system with an allowance of RMB 180,000/year; senior management remuneration consists of basic remuneration,
floating annual performance bonuses and other incentives, and senior management who also serve as directors are
remunerated in accordance with the senior management remuneration standards; supervisor’s allowance is RMB
60,000/year, and supervisors who also serve in other positions in the Company are remunerated by a combination
of post remuneration and supervisor’s allowance.

Remuneration of directors, supervisors and senior management in the Reporting Period

Unit: RMB’0,000

Total before-tax Remuneration
Name Office title Gender Age Incumbent/For remuneration from related
mer from the party

Company

Hua Xue Chairman of the Board and General Male 53 Incumbent 292.04 No

Manager

Yingzhuo Vice Chairman of the Board Male 55 Incumbent - Yes

Xu

Qi Cheng Director and Executive Vice President Male 43 Incumbent 203.12 No

(Deputy General Manager)

Xueqiao Director, Vice President (Deputy Male 56 Incumbent 209.88 No

Qian General Manager) and Chief Engineer

Jianfang Independent Director Male 67 Incumbent 18 No

Gui

Jianguo Independent Director Male 61 Incumbent 18 No

He

Yunguo Independent Director Male 57 Incumbent 18 No

Liu

Zhenxiong Supervisor Male 53 Incumbent 106.68 No

Qi

Hua Wang Supervisor Male 36 Incumbent 52.21 No

Yongfang Supervisor Female 34 Incumbent 63.99 No

Mu

Guoxiang Vice President (Deputy General Male 54 Incumbent 212.23 No

Liu Manager)

Shaolin Vice President (Deputy General Male 49 Incumbent 199.11 No

Yang Manager) and Chief Financial Officer

Xiewu Vice President (Deputy General Male 55 Incumbent 192.8 No

Jiang Manager)

Guocheng Vice President (Deputy General Male 51 Incumbent 200.65 No

Mi Manager)


Zhongzhu Vice President (Deputy General Male 53 Incumbent 156.14 No

Chen Manager)

Mingzhon Vice President (Deputy General Male 58 Incumbent 65.67 No

g Chen Manager)

Jiantao Vice President (Deputy General Male 54 Incumbent 88.99 No

Yang Manager)

Jing Wang Vice President (Deputy General Female 44 Incumbent 95.58 No

Manager)

Zhijian Vice President (Deputy General Male 45 Incumbent 147.28 No

Huang Manager) and Board Secretary

Total -- -- -- -- 2,340.37 --

Notes: 1. Yingzhuo Xu, Vice Chairman of the Board of the Company, has acted as General Manager of the
Company’s controlling shareholder Guangzhou Haihao Investment Co., Ltd. (hereinafter referred to as “Haihao
Investment”) since December 2021, and has been paid by Haihao Investment since 1 December 2021. He was not
remunerated by the Company in 2022.

2. The table above is exclusive of a total of RMB 32.8397 million of share of the operating profit of the last three
years and special bonuses that were granted in 2022 to Deputy General Managers Qi Cheng, Xueqiao Qian,
Guoxiang Liu, Shaolin Yang, Xiewu Jiang, Guocheng Mi, Zhongzhu Chen, Mingzhong Chen, Jiantao Yang, Jing
Wang and Zhijian Huang. The aforesaid amounts have been given to their personal accounts after deducting the
individual income tax as required.

VI. Performance of Duties by Directors in the Reporting Period

1. Board Meetings Convened in the Reporting Period

Date of Disclosure

Meeting the date Resolutions

meeting

The following proposals were approved: 1. The Proposal on the 'Report on the Work
of the Board of Directors for 2021' (《关于<公司 2021 年度董事会工作报告>的议
案》); 2. The Proposal on the 'Report on the Work of the General Manager of the
Company for the Year 2021' (《关于<公司 2021 年度总经理工作报告>的议案》);
3.TheProposalonthe'Annual ReportoftheCompanyfor 2021'anditsAbstract (《关
于<公司 2021 年年度报告>及其摘要的议案》); 4. The Proposal on the 'Financial
Final Report for 2021 of the Company' (《关于<公司 2021 年度财务决算报告>的
议案》); 5. The Proposal on the Profit Appropriation Plan in 2021 (《关于 2021 年
度利润分配预案的议案》); 6. The Proposal on the 'Internal Control Self-assessment
Report of the Company in 2021' (《关于<公司 2021 年度内部控制自我评价报告>
的议案》); 7. The Proposal on the 'Special Report on Deposit and Usage of Raised
Funds of the Company in 2021' (《关于<公司 2021 年年度募集资金存放与使用情
况的专项报告>的议案》); 8. The Proposal on the 'Corporate Social Responsibility
The 25th Report 2021 of the Company' (《关于<公司 2021 年社会责任报告>的议案》); 9.
Meeting of the 10 April 12 April The Proposal on Routine Related-party Transactions in 2022 (《关于 2022 年日常关
Fifth Board of 2022 2022 联交易的议案》); 10. The Proposal on the External Guarantee (《关于对外提供担
Directors 保的议案》); 11. The Proposal on the Application for Comprehensive Credit Line
from Banks in 2022 (《关于 2022 年向银行申请综合授信额度的议案》); 12. The
Proposal on Conducting Hedging Business in 2022 (《关于 2022年开展套期保值
业务的议案》); 13. The Proposal on the Cash Management of Part of Idle Funds
Raised and Self-owned Funds (《关于使用部分闲置募集资金及自有资金进行现
金 管 理 的 议 案 》); 14. The Proposal on Capital Increase to Majority-owned
Subsidiary & the Related-party Transaction (《关于向控股子公司增资暨关联交易
的议案 》); 15. The Proposal on the Lease of Office Space & the Related-party
Transaction (《关于租赁办公场地暨关联交易的议案》); 16. The Proposal on the
Adjustment to Independent Director’s Allowance (《关于调整独立董事津贴的议
案》); 17.TheProposal on the'Dividend DistributionPlan of GuangdongHaid Group
Co., Limited for the Next Three Years (2022-2024)' (《关于<广东海大集团股份有
限公司未来三年（2022-2024 年）分红回报规划>的议案》); 18. The Proposal on
the 'First Quarter Report for 2022 of the Company' (《关于<公司 2022 年第一季度
报告>的议案》); and 19. The Proposal on Convening the 2021 Annual General


Meeting of Shareholders (《关于召开 2021 年年度股东大会的议案》).

The following proposals were approved: 1. The Proposal on the Company being
Eligible for Private Placement of Shares (《关于公司符合非公开发行股票条件的
议案》); 2. The Proposal on the Plan for Private Placement ofA-stock Shares in 2022
(《关于公司 2022 年度非公开发行 A 股股票方案的议案》); 3. The Proposal on
the 'Preliminary Plan of Guangdong Haid Group Co., Limited for Private Placement
ofA-stock Shares in 2022' (《关于<广东海大集团股份有限公司 2022 年度非公开
发行 A股股票预案>的议案》); 4. The Proposal on the Company and Certain Entity
Signing a 'Conditional Share Subscription Agreement' & the Related-party
Transaction (《关于公司与特定对象签署<附条件生效的股份认购协议>暨关联
交易的议案》); 5. The Proposal on the 'Feasibility Analysis Report on the Use of
Funds Raised in the Private Placement ofA-stock Shares in 2022 of Guangdong Haid
The 26th Group Co., Limited' (《关于<广东海大集团股份有限公司 2022 年度非公开发行
Meeting of the 19 April 20 April A股股票募集资金使用可行性分析报告>的议案》);6.TheProposalonthe'Report
Fifth Board of 2022 2022 on the Use of the Previously Raised Funds of Guangdong Haid Group Co., Limited'
Directors (《关于<广东海大集团股份有限公司前次募集资金使用情况报告>的议案》); 7.
The Proposal on the Impact of the Dilution of Immediate Returns as a Result of the
Private Placement of A-stock Shares in 2022 on the Company’s Key Financial
Indicators and the Compensation Measures and the Undertakings of the Relevant
Entities(《关于公司 2022年度非公开发行 A股股票摊薄即期回报对公司主要财
务指标的影响与填补措施以及相关主体承诺的议案》); 8. The Proposal on
Requesting the General Meeting of Shareholders to Authorize the Board of Directors
to Handle Matters Relating to the Company's Private Placement ofA-stock Shares in
2022 on a Discretionary Basis (《关于提请股东大会授权董事会全权办理公司
2022 年度非公开发行 A 股股票相关事宜的议案》); and 9. The Proposal on
Convening the First Extraordinary General Meeting of Shareholders in 2022 (《关于
召开 2022 年第一次临时股东大会的议案》).

The following proposals were approved: 1. The Proposal on the External Guarantee
(《关于对外提供担保的议案》); 2. The Proposal on Changes to Accounting
Policies and Estimates (《关于会计政策及会计估计变更的议案》); 3. The
Proposal on theAdjustment to the Exercise Price for the 2021 Share Option Incentive
Plan (《关于调整公司 2021 年股票期权激励计划行权价格的议案》); 4. The
The 27th Proposal on Matters in Relation to the Grant of Reserved Share Options under the
Meeting of the 16 May 18 May 2021 Share Option Incentive Plan (《关于公司 2021 年股票期权激励计划预留股
Fifth Board of 2022 2022 票期权授予相关事项的议案》); 5. The Proposal on Applying for the Filing of an
Directors Open Debt Financing Plan (《关于申请备案挂牌债权融资计划的议案》); 6. The
Proposal onAmendments to the 'Articles ofAssociation' (《关于修订<公司章程>的
议案》); 7. The Proposal on Amendments to the 'Rules of Procedure for General
Meeting of Shareholders' (《关于修订<股东大会议事规则>的议案》); and 8. The
Proposal on Convening the Second Extraordinary General Meeting of Shareholders
in 2022 (《关于召开 2022 年第二次临时股东大会的议案》).

The following proposals were approved: 1. The Proposal on the Re-election of the
Board of Directors (《关于董事会换届选举的议案》); 2. The Proposal on
Adjustments to the Plan for the Private Placement ofA-stock Shares in 2022 (《关于
调整公司 2022 年度非公开发行 A股股票方案的议案》); 3. The Proposal on the
'Preliminary Plan (Revised) of Guangdong Haid Group Co., Limited for Private
Placement of A-stock Shares in 2022' (《关于<广东海大集团股份有限公司 2022
The 28th 年度非公开发行 A 股股票预案（修订稿）>的议案》); 4. The Proposal on the
Meeting of the 3 4 August Company and Certain Entity Signing a 'SupplementaryAgreement to the Conditional
Fifth Board of August 2022 Share Subscription Agreement' & the Related-party Transaction (《关于公司与特定
Directors 2022 对象签署<附条件生效的股份认购协议之补充协议>暨关联交易的议案》); 5.
The Proposal on the Impact of the Dilution of Immediate Returns as a Result of the
Private Placement of A-stock Shares in 2022 on the Company’s Key Financial
Indicators and the Compensation Measures (Revised) (《关于公司 2022 年度非公
开发行 A 股股票摊薄即期回报对公司主要财务指标的影响与填补措施（修订
稿）的议案》); and 6. The Proposal on Convening the Third Extraordinary General
Meeting of Shareholders in 2022 (《关于召开 2022 年第三次临时股东大会的议
案》).

The First 19 The following proposals were approved: 1. The Proposal on the Election of the
Meeting of the August 20 August Chairman and Vice Chairman for the Sixth Board of Directors (《关于选举公司第
Sixth Board of 2022 2022 六届董事会董事长及副董事长的议案 》); 2. The Proposal on the Election of
Directors


Members for the Specialized Committees under the Sixth Board of Directors (《关于
选举公司第六届董事会专门委员会委员的议案》); 3. The Proposal on the
Appointment of Senior Management (《关于聘任公司高级管理人员的议案》); 4.
The Proposal on the Appointment of Securities Affairs Representative (《关于聘任
公司证券事务代表的议案》); and 5. The Proposal on the Appointment of Head for
Internal Audit (《关于聘任公司内审负责人的议案》).

The following proposals were approved: 1. The Proposal on the 'Semi-Annual Report
of the Company for 2022' and itsAbstract (《关于<公司 2022 年半年度报告>及其
The Second 26 摘要的议案》); 2. The Proposal on the 'Special Report on Deposit and Usage of
Meeting of the August 30 August Raised Funds of the Company in the First Half of 2022' (《关于<公司 2022 年半年
Sixth Board of 2022 2022 度募集资金存放与使用情况的专项报告>的议案》); and 3. The Proposal on
Directors Amendments to the Company’s Certain Rules (《关于修订公司部分制度的议
案》).

The following proposals were approved: 1. The Proposal on the 'Third Quarter Report
for 2022 of the Company' (《关于<公司 2022 年第三季度报告>的议案》); 2. The
The Third Proposal on the Renewal ofAppointment of Grant Thornton China (LLP) as theAudit
Meeting of the 19 21 Institution for 2022 of the Company (《关于续聘致同会计师事务所（特殊普通合
Sixth Board of October October 伙）为公司 2022 年度审计机构的议案》); 3.TheProposal on the Routine Related-
Directors 2022 2022 party Transactions (《关于日常关联交易的议案》); and 4. The Proposal on
Convening the Fourth Extraordinary General Meeting of Shareholders in 2022 (《关
于召开 2022 年第四次临时股东大会的议案》).

The Fourth 27 28

Meeting of the October October The following proposal was approved: 1. The Proposal on Adjusting the Foreign
Sixth Board of 2022 2022 Exchange Hedging Business (《关于调整外汇套期保值业务的议案》).

Directors

The following proposals were approved: 1. The Proposal on Temporary
Replenishment of Working Capital with Partial Idle Raised Funds (《关于使用部分
闲置募集资金暂时补充流动资金的议案》); 2. The Proposal on the Changes to
Certain Raised Funds Investment Projects (《关于变更部分募集资金投资项目的
议案》); 3. The Proposal on the Provision of Guarantee for Subsidiary (《关于为子
The Fifth 12 13 公司提供担保的议案》); 4. The Proposal on the External Guarantee (《关于对外
Meeting of the Decemb December 提供担保的议案》); 5. The Proposal on the Application for Comprehensive Credit
Sixth Board of er 2022 2022 Line from Financial Institutions in 2023 (《关于 2023 年向金融机构申请综合授信
Directors 额度的议案》); 6.TheProposal on theFormulation ofthe'Rulesfor theManagement
of the Remunerations of Directors, Supervisors and Senior Management' (《关于制
定<董事、监事和高级管理人员薪酬管理制度>的议案》); and 7. The Proposal on
Convening the Fifth Extraordinary General Meeting of Shareholders in 2022 (《关于
召开 2022 年第五次临时股东大会的议案》).

2.Attendances of Directors at Board Meetings and General Meetings

Attendances of directors at board meetings and general meetings

Due Attendances Attendances Not attending

attendances Attendances at board at board Absences at board Attendances
Director at board at board meetings by meetings board meetings in at general
meetings in meetings on telecommuni through a meetings person for meetings
Reporting site cation proxy twice in a

Period row

Hua Xue 9 9 0 0 0 No 6

Yingzhuo Xu 9 8 1 0 0 No 2

Xueqiao 9 9 0 0 0 No 2
Qian

Qi Cheng 9 9 0 0 0 No 2

Jianfang Gui 9 1 8 0 0 No 1

Jianguo He 9 6 3 0 0 No 2

Yunguo Liu 9 5 4 0 0 No 3

Explanation for any independent director not attending board meetings in person for twice in a row

None of the directors failed to attend board meetings in person for twice in a row in the reporting period.


3. Objections Raised by Directors on Matters of the Company

Indicate by tick mark whether any director raised any objection on any matter of the Company

□ Yes  No

No such cases in the reporting period.

4. Other Information about Performance of Duties by Directors

Indicate by tick mark whether any suggestions from directors were adopted by the Company

 Yes □ No

Suggestions of directors adopted or not adopted by the Company

During the reporting period, all the directors of the Company carried out their work diligently and conscientiously
in strictaccordance with theCompanyLaw(《公司法》), the Stock Listing Rules of the ShenzhenStockExchange
(《深圳证券交易所股票上市规则》), the Articles of Association (《公司章程》), the Rules of Procedure for
General Meetings of Shareholders (《股东大会议事规则》), and the Rules of Procedure of the Board of Directors
(《董事会议事规则》). Based on the Company's reality, they put forward relevant opinions on the Company's
major governance and operation decisions and reached consensuses through full communication and discussion.
They resolutely supervised and promoted the implementation of the resolutions of the Board of Directors to ensure
scientific, timely, and efficient decision-making and safeguard the legitimate rights and interests of the Company
and all of its shareholders.

VII. Performance of Duties by Specialized Committees under the Board of Directors in the
Reporting Period

Meeti Substantial opinion Other Details of
Committee Members ngs Date of the Topics of the meeting and recommendations activitie objections
conve meeting put forward s (if any)
ned

Discussed audit

Communicated about procedures carried

10 April 2022 the first draft of the out in the 2021 None None

2021 Independent annual audit and the

Auditor’s Report identification of key

audit matters

The financial

10 April 2022 statements and the None None None

internal audit report

for Q1 2022

Discussed the

Yunguo reasonableness,

Liu, Changes to accounting compliance and

TheAudit Jianguo 11 May 2022 policies and estimates necessity of the None None

Committee He and 7 changes to

Jianfang accounting policies

Gui and estimates

The financial

statements and the Agreed to the

16 August internal audit report appointment of Mr.

2022 for Q2 2022, and Wei Zeng as the Head None None

nominated Mr. Wei for Internal Audit

Zeng as the Head for

Internal Audit

Agreed to re-appoint

13 October Appointed Grant Thornton

2022 IndependentAuditor China as the None None

for 2022 IndependentAuditor

for 2022


The financial

13 October statements and the None None None

2022 internal audit report

for Q3 2022

Discussed the

changes to the

accounting treatments

for the sales of

products or by-

products produced in

14 December Changes to accounting the course of research

2022 policies and development as None None

stated in the

Interpretation No. 15

for theAccounting

Standards for

Business Enterprises

(《企业会计准则解

释第 15 号》)

Nominated members

Jianguo 18 July 2022 for the Sixth Board of None None None

The He, Directors

Nomination Yunguo 3 13 August Reviewed the sixth None None None

Committee Liu and 2022 senior management

Qi Cheng 31 August Nominated core/key

2022 members of the None None None

Company

The post system and

the remuneration

31 March system and plans, and None None None

Yunguo 2022 adjusted the

Liu, independent director’s

Jianguo allowance

He and 2 Discussed the Discussed the

Yingzhuo adjustment to the price legitimacy and

Xu of the 2021 Share eligibility of

11 May 2022 Option Incentive Plan awardees for the None None

and the grant of reserved share

The reserved share options options

Remuneratio to awardees

n and Formulated the Rules

Appraisal for the Management of

Committee the Remunerations of Discussed the

Directors, Supervisors reasonableness of the

Yunguo 7 December and Senior remuneration system None None

Liu, 2022 Management (《董 for directors and

Jianguo 2 事、监事和高级管理 supervisors

He and 人员薪酬管理制

Xueqiao 度》)

Qian Confirmed the second

30 December vesting under the

2022 Fourth Employee None None None

Stock Ownership Plan

for Core Team

Discussed the plan for Focused on the

31 March hedges in 2022 and feasibility and risks None None

2022 factory-based of derivative

Hua Xue, aquaculture investments

Yingzhuo Focused on the

The Strategy Xu and 3 Discussed the private legitimacy and

Committee Xueqiao 10 April 2022 placement of shares to necessity of the None None

Qian specific parties private placement of

shares to specific

parties

11 May 2022 Discussed the None None None

application for the


filing of an open debt

financing plan

Hua Xue, Focused on the

Yingzhuo 22 October Discussed adjustments necessity of

Xu and 1 2022 to the plan for hedges adjustments to the None None

Jianfang in 2022 limit of derivatives

Gui investment

VIII. Performance of Duties by the Supervisory Committee

Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in
the reporting period
□ Yes  No

The Supervisory Committee raised no objections in the reporting period.

IX Employees

1. Numbers, Functions and Educational Backgrounds of Employees

Number of in-service employees of Parent Company (Haid 2,355
Group exclusive of subsidiaries) at the end of the period

Number of in-service employees of major subsidiaries at the 33,663
end of the period

Total number of in-service employees at the end of the period 36,018

Total number of paid employees in Reporting Period 36,018

Number of retirees to whom Parent Company or its major 0
subsidiaries need to pay retirement pension

Functions

Function Employees

Production 16,912

Sales 9,619

Technical 3,382

Financial 1,826

Administrative 3,403

Procurement 876

Total 36,018

Educational backgrounds

Educational background Employees

Doctoral degree 133

Master’s degree 1,615

Bachelor’s degree 7,426

Junior college 7,124

Senior high school, technical secondary school and below 19,720

Total 36,018

2. Employee Remuneration Policy

While strictly abiding by the Labor Law of the People’s Republic of China (《中华人民共和国劳动法》), the
Labor Contract Law of the People’s Republic of China (《中华人民共和国劳动合同法》) and other national and
local related laws, regulations, department rules and regulatory documents, the Company implements the following
principles according to the characteristics of the industry and the Company’s operations: persist in the principle of
labor-based distribution combining duties, power and interests; implement the principle of linking income levels

with the Company’s performance and work goals; implement the principle of integrating individual remuneration
with the Company’s long-term interests to ensure sustained and sound growth in main business, prevent short-term
behaviors and promote the Company’s sustained operations and development; stick to the principle of linking
remuneration with performance appraisal with equal emphasis on incentive and restraint; give comprehensive
consideration to market changes and market remuneration levels. The Company has established a reasonable post
and remuneration system to provide employees with competitive salaries in the industry, link performance with
remuneration, align employees’ and the Company’s interests, enhance staff awareness for team work and give full
play to every employee’s enthusiasm and creativity.

3. Employee Training Plans

The Company always emphasizes the development of human resources and talents with a firm belief that staff
development is an important power and resource for the Company’s continuous development. Haid College, the
Company’s functional department for talent development, has always closely followed the Group's strategies and
the guidelines of the Group's business at the heart of talent development. It remains committed to the values of "All
for your growth" and follows the principle of elite training and inclusive education to solve key problems for the
development of the organization. Through the combination of online and offline working methods, it has kept
exploring new modes for talent development.

In 2022, Haid College created a learning organization centering on creating value for customers. It continued to
carry out the EDP Future Pilot Program, the IDP Core Executive Development Program, and the CFO Class. It has
focused on its efforts to cultivate a team of managerial staff with cultural strategies, business operation, and
leadership. Moreover, it has continuously strengthened and standardized cultural education for recruits from
universities and society.

With increasing learning resources, the Company's platform for online learning, namely, "Haiwei", has accelerated
the formation of the learning ecosystem. It has more than 8,000 online course resources, with approximately 30,000
online learners and a total of nearly 1,000,000 learning hours in the year.

The Company sees a lively atmosphere of talent development. It has put in place a resource system for talent
development, and gradually improved the learning roadmaps of professional centers. The training systems for
professional lines and divisions have gradually taken shape, which have become the performance highlights of HR
and business managers. Executive development is in full swing and learning resources are increasing, creating a
sound ecosystem of learning in Haid.

4. Labor Outsourcing
□Applicable  Not applicable

X. Profit Distribution and Capitalization of Capital Reserve

Formulation, implementation or adjustment of profit distribution policy, especially the cash dividend during the
reporting period
Applicable □ Not applicable

According to the Proposal on the Preliminary Plan for the 2021 Profit Distribution (《关于2021年度利润分配预
案的议案》) as approved at the 2021 Annual General Meeting of Shareholders convened on 9 May 2022, the
distribution plan is as follows: The Company proposed to distribute RMB 1.50 (tax inclusive) per 10 shares based
on "the total number of shares exclusive of the repurchased shares (the number of shares eligible for profit
distribution) on the date of record when the plan is implemented in the future". The proposed total amount of
dividend shall not exceed the profit of the company (parent company) available for distribution to shareholders as
at31December 2021.The retained earningswill be carried forward to the following year. On7July2022, the equity
distribution was completed.

During the reporting period, the Company has formulated the Dividend Distribution Plan of the Company for the

NextThreeYears (2022-2024) (《未来三年（2022-2024年）分红回报规划》) in accordancewith theGuidelines
No. 3 for the Regulation of Listed Companies—Cash Dividend of Listed Companies (《上市公司监管指引3号—
上市公司现金分红》) and theArticles ofAssociation (《公司章程》), among others.

The Company’s profit distribution policy, dividend distribution policy, dividend standards, and dividend ratios are
well-defined and clear. Independentdirectors have dulyperformed their duties and functions. Minorityshareholders
have the opportunityto fully express their views and concern, which is in line with theArticles ofAssociation (《公
司章程》) and the requirements of the consideration procedures. The conditions and procedures for the adjustment
or change of the profit distribution policy are compliant and transparent, and the legal rights and interests of small
and medium investors are fully protected.

Particulars of Cash Dividend Policy

Whether the policy is in compliance with the requirements of the

Articles ofAssociation or the resolutions passed at the general Yes

meeting:

Whether the basis and ratio of the distribution of dividends are Yes

well-defined and clear:

Whether the relevant decision making procedure and system are Yes

sound:

Whether the independent directors have duly performed their Yes

duties and functions:

Whether there are enough opportunities for minority

shareholders to express their views and concerns, and whether Yes

their legal interests are sufficiently protected, etc:

Whether the conditions and procedures are legal and transparent N/A

in respect of cash dividend policy with adjustments and changes:

The Company made a profit and had positive retained profit available for ordinary shareholders of parent company
during the reporting period without cash dividend being proposed

□Applicable  Not applicable

Proposals on profit distribution and capitalization of capital reserve during the reporting period

Applicable □ Not applicable

Number of bonus share per 10 shares (share(s)) 0

Dividend distribution per 10 shares (RMB) (tax inclusive) 4.50

Share base of the distribution proposal (shares) Total number of shares exclusive of the repurchased shares on
the registration date when the plan is implemented in the future

Amount of cash dividend (RMB) (tax inclusive) 744,064,416.90

Amount of cash dividend distribution through other means 0.00
(such as share repurchase) (RMB)

Total amount of cash dividends (including other means) (RMB) 744,064,416.90

Distributable profits (RMB ) 4,008,324,416.01

Total amount of cash dividends (including other means) as % 100%
of total profit distribution

Cash dividend policy

For profit distribution of companies which are in the growth period with significant capital expenditure arrangement, the percentage
for cash dividend shall represent at least 20% of the profits distribution for the current year

Particulars of profit distribution and capitalization of capital reserves

According to the audit report issued by Grant Thornton China (Special General Partnership), the Company (parent company)
achieved a net profit of RMB1,344,935,081.43 and made provisionfor statutorysurplusreserves ofRMB 84,149,723.65 asrequired
by the Company Law (《公司法》), without allocation to discretionary revenue reserve in 2022. As at 31 December 2022, the
profit available for distribution to shareholders amounted to RMB 4,008,324,416.01.

Based on the operating results of the Company in 2022, as well as the Company's business scale and future growth, the legitimate


demands of investors and continuous return to shareholders, the Company formulated the 2022 annual profit distribution plan as
follows: The Company proposed to distribute RMB 4.50 (tax inclusive) per 10 shares based on "the total number of shares exclusive
of the repurchased shares (the number of shares eligible for profit distribution) on the date of record when the plan is implemented
in the future". The proposed total amount of dividend shall not exceed the profit of the Company (parent company) available for
distribution to shareholders as at 31 December 2022. The retained earnings will be carried forward to the following year.

Where any change occurs to the Company’s total share capital during the period from the disclosure of the distribution plan to its
implementation due to reasons such as conversion of convertible corporate bonds to shares, share repurchases, exercise of equity
incentives, and new offering of shares for re-financing, the dividend per 10 shares shall remain the same while the total amount of
dividend shall be adjusted accordingly.

In order to look after the shareholders’ immediate and long-term interests in a better way on the premise of guaranteeing the
Company's normal operations and long-term development, the Company put forward the above-mentioned profit distribution plan.
The preparation of the above-mentioned profit distribution plan is in line with the Company Law (《公司法》) and theArticles of
Association (《公司章程》), and the Dividend Distribution Plan of the Company for the Next Three Years (2022-2024) (《未来
三年（2022-2024年）分红回报规划》). The distribution plan is legal, compliant and reasonable and in line with the Company's
distribution policy.

The independent directors of the Company expressed their independent opinions that the Company's 2022 profit distribution plan
gives full consideration to the returns to investors and is in line with the actual situation of the company without any prejudice to
the interests of shareholders, in particular minority shareholders. Therefore, they agreed to the 2022 profit distribution plan.

This proposal will be submitted to a general meeting of shareholders for final approval.

XI. Implementation of the Equity Incentive Plan, Employee Stock Ownership Plan or Other
Employee Incentive Measures of the Company

Applicable □ Not applicable
1. Equity Incentives
● Decision-making procedures and approval

On 6April 2021, the Company convened the 17th Meeting of the Fifth Board of Directors to consider and approve
the Proposal on the 2021 Share Option Incentive Plan (Draft) of Guangdong Haid Group Co., Limited and Its
Summary (《关于<广东海大集团股份有限公司2021年股票期权激励计划(草案)>及其摘要的议案》), the
Proposal on the Management Methods for the Implementation and Appraisal for the 2021 Share Option Incentive
Plan of Guangdong Haid Group Co., Limited (《关于<广东海大集团股份有限公司2021年股票期权激励计划
实施考核管理办法>的议案》),andtheProposalonAuthorisationoftheBoardofDirectorsattheGeneralMeeting
to Handle Matters Related to the 2021 Share Option Incentive Plan (《关于提请股东大会授权董事会办理公司
2021年股票期权激励计划有关事项的议案》). On the same day, the Company convened the 13th Meeting of the
Fifth Supervisory Committee to consider and approve the Proposal on the 2021 Share Option Incentive Plan (Draft)
and Its Summary (《关于<公司2021年股票期权激励计划(草案)>及其摘要的议案》), the Proposal on the
Management Methods for the Implementation and Appraisal for the 2021 Share Option Incentive Plan of
Guangdong Haid Group Co., Limited (《关于<广东海大集团股份有限公司2021年股票期权激励计划实施考
核管理办法>的议案》), and the Proposal on the Examination of the List of Awardees for the 2021 Share Option
Incentive Plan (Draft) (《关于核查公司2021年股票期权激励计划（草案）激励对象名单的议案》).

On 29April 2021, the Company convened the 19th Meeting of the Fifth Board of Directors to consider and approve
the Proposal on the 2021 Share Option Incentive Plan (Revised Draft) of Guangdong Haid Group Co., Limited and
Its Summary (《关于<广东海大集团股份有限公司2021年股票期权激励计划（草案修订稿）>及其摘要的议案》),andtheProposalonAuthorisationoftheBoardofDirectorsattheGeneralMeetingtoHandleMattersRelated
to the 2021 Share Option Incentive Plan (《关于提请股东大会授权董事会办理公司2021年股票期权激励计划
有关事项的议案》).Onthesameday,theCompanyconvenedthe15thMeetingoftheFifthSupervisoryCommittee
to consider and approve the Proposal on the 2021 Share Option Incentive Plan (Revised Draft) of Guangdong Haid
Group Co., Limited and Its Summary(《关于<广东海大集团股份有限公司2021年股票期权激励计划（草案修
订稿）>及其摘要的议案》), and the Proposal on the Examination of the List of Awardees for the 2021 Share

Option Incentive Plan (Revised Draft) (《关于核查公司2021年股票期权激励计划（草案修订稿）激励对象名
单的议案》).

On 7April 2021 and 30April 2021, the Company disclosed the List ofAwardees for the First Grant under the 2021
Share Option Incentive Plan (Draft) (《2021年股票期权激励计划（草案）首次授予激励对象名单》) and the
List ofAwardees for the First Grant under the 2021 Share Option Incentive Plan (Revised Draft) (《2021年股票期
权激励计划（草案修订稿）首次授予激励对象名单》) respectively on the website designated by China
Securities Regulatory Commission (CSRC) for information disclosure. The Company publicized internally the
names and positions of the awardees on the Company website for the period from 30 April 2021 to 13 May 2021,
during which the Supervisory Committee received no objections regarding the publicized information. On 14 May
2021, the Company disclosed the Statement of the Supervisory Committee on the Examination and Publication
Results of the List of Awardees for the 2021 Share Option Incentive Plan (《监事会关于2021年股票期权激励计
划激励名单核查及公示情况的说明》). The Supervisory Committee was of the opinion that the awardees for the
first grant under the incentive plan were all eligible, legitimate and valid according to the applicable laws,
regulations and regulatory documents, as well as the awardee scope and conditions of the incentive plan.

On 20 May2021, the Companyconvened the 2020Annual General Meeting to consider and approve the 2021 Share
Option Incentive Plan (Revised) (《2021年股票期权激励计划（修订稿）》), the Management Methods for the
Implementation and Appraisal for the 2021 Share Option Incentive Plan (《2021年股票期权激励计划实施考核
管理办法》) (hereinafter referred to as the“Appraisal andManagementMethods” (《公司考核管理办法》)), and
the Proposal on Authorisation of the Board of Directors at the General Meeting to Handle Matters Related to the
2021 Share Option Incentive Plan (《关于提请股东大会授权董事会办理公司2021年股票期权激励计划有关
事项的议案》).

On 10 June 2021, the Company convened the 20th Meeting of the Fifth Board of Directors and the 16th Meeting of
the Fifth Supervisory Committee to consider and approve the Proposal onAdjustments to the List ofAwardees and
the Numbers of Equities to Be Granted toThemin the First Grantunder the 2021 ShareOption Incentive Plan (《关
于调整公司2021年股票期权激励计划首次授予激励对象名单及授予权益数量的议案》), and the Proposal on
the Grant of Share Options to the Awardees for the First Grant under the 2021 Share Option Incentive Plan (《关
于向公司2021年股票期权激励计划首次授予激励对象授予股票期权的议案》). As such, the list of awardees
for the first grant under the incentive plan and the numbers of equities to be granted to them were adjusted.
Meanwhile, it was decided that a total of 47,953,200 share options were to be granted to 4,003 eligible awardees on
10 June 2021 in the first grant under the incentive plan. The registration formalities with respect to the first grant
under the 2021 Share Option Incentive Plan were completed on 28 June 2021.

Upon the completion of the 2020 annual equity distribution on 8 July 2021, the exercise price for the first grant and
the reserve grant under the 2021 Share Option Incentive Plan would be adjusted from RMB 59.68/share to RMB
59.36/share, and the said adjustment is subject to final approval by the Board of Directors.

On 16 May 2022, the Company convened the 27th Meeting of the Fifth Board of Directors and the 23th Meeting of
the Fifth Supervisory Committee to consider and approve the Proposal on theAdjustment to the Exercise Price for
the 2021 Share Option Incentive Plan (《关于调整公司2021年股票期权激励计划行权价格的议案》) and the
Proposal on Matters in Relation to the Grant of Reserved Share Options under the 2021Share Option Incentive Plan
(《关于公司2021年股票期权激励计划预留股票期权授予相关事项的议案》). As such, due to the
implementation of the 2020 annual equity distribution, the exercise price for the first grant and the reserve grant
under the 2021 Share Option Incentive Plan was adjusted from RMB 59.68/share to RMB 59.36/share; and it was
agreed that a total of 6.8251 million reserved share options should be granted to 1,044 eligible awardees at the
exercise price of RMB 59.36/share on 16 May 2022 under the 2021 Share Option Incentive Plan. The registration
formalities with respect to the grant of reserved share options under the 2021 Share Option Incentive Plan were
completed on 24 June 2022.

● Implementation during the reporting period

During the reporting period, due to the implementation of the 2020 annual equity distribution, the exercise price for
the firstgrantand the reservegrantunder the2021 ShareOption Incentive Plan was adjusted fromRMB 59.68/share

to RMB 59.36/share; and a total of 6.8251 million reserved share options were granted to 1,044 eligible awardees
at the exercise price of RMB 59.36/share on 16 May 2022. The registration formalities with respect to the grant of
reserved share options under the 2021 Share Option Incentive Plan were completed on 24 June 2022.

● Accounting treatment method for option incentive and effects of equity incentive cost on the results of the
Company

According to relevant provisions under the Accounting Standards for Business Enterprises No. 11 - Share-based
Payments (《企业会计准则第11号——股份支付》), the Company will, on each balance sheet date in the vesting
period, amend the number of share options that are expected to be exercisable according to the latest available
information of changes in the number of awardees allowed to exercise share options, completion of performance
indicators and other follow-up information and include the services obtained in the current period in the relevant
costs or expenses and capital reserve at fair value of the share options on the grant date.

The implementation of the above equityincentive plan will not have a significantimpacton theCompany's financial
position and operating results during the reporting period and in the future.

Equity incentives for directors and senior management

Applicable □ Not applicable

Unit: share

Exerci

se

price Marke Restri Restri

Exerc Exerci for Share t price cted cted Restri
Share Share isable sed exerci option at the shares Share share Grant cted
options options share share sed s held end of held s s price of shares
held at granted optio option share at the the at the unloc grant the held at
Name Office title the in the ns for s in option end of report begin ked in ed in restricte the
beginnin reporti the the s in the ing ning the the d shares end of
g of the ng report reporti the report period of the report report (RMB/s the
reportin period ing ng report ing (RMB report ing ing hare) reporti
g period perio period ing period / ing period perio ng
d period share) period d period
(RMB

/

share)

Director

Qi and 100,000. 100,0

Cheng Executive 00 00.00 61.73

Vice

President

Director,

Xueqi Vice 90,000.0 90,00

ao President 0 0.00 61.73

Qian and Chief

Engineer

Guoxi Vice 80,000.0 80,00

ang President 0 0.00 61.73

Liu

Shaoli Vice 90,000.0 90,00

n President 0 0.00 61.73

Yang and CFO

Xiew Vice 80,000.0 80,00

u President 0 0.00 61.73

Jiang

Guoc Vice 80,000.0 80,00

heng President 0 0.00 61.73

Mi

Zhong Vice 100,000. 100,0

zhu President 00 00.00 61.73

Chen


Jing Vice 70,000.0 70,00 61.73

Wang President 0 0.00

Zhijia Vice

n President 90,000.0 90,00 61.73

Huan and Board 0 0.00

g Secretary

Total -- 780,000. 0 0 0 -- 780,0 -- 0 0 0 -- 0
00 00.00

The share options held at the beginning and the end of the reporting period by the directors and senior management
Notes (if any) in the table above were all granted under the 2021 Share Option Incentive Plan for which the exercise conditions were
unmet as of the end of the reporting period.

Appraisal mechanism and incentives for senior management

The Company has put in place a senior management selection, appraisal, incentive and restrictive system. All
appointed byand being responsible to the Board of Directors, senior management shoulders the operating indicators
set by the Board of Directors. The Remuneration and Appraisal Committee under the Board is responsible for a
year-end appraisal of senior management’s service ability, performance of duties and fulfillment of objectives,
among others. And then the committee formulates a remuneration plan for the Board’s review. During the reporting
period, the Company duly restricted its senior management as per the applicable laws and regulations by
strengthening the connection between performance appraisal and remuneration and incentives, aligning
remuneration with appraisal results, and achieving differentiation in remuneration and incentives.

2. Employee stock ownership plans

Applicable □ Not applicable

Outstanding employee stock ownership plans during the reporting period

Number of As a percentage of

Scope of employees employees Total shares held Change the Company’s Funding source

total share capital

The awardees for the Third

Employee Stock Ownership The special fund

Plan are key personnel that play No more established by the

a significant role in the than 30 888,500.00 None 0.05% Company for the

Company’s operating employee stock

performance and mid- and long- ownership plan

term development.

The awardees for the Fourth

Employee Stock Ownership The special fund

Plan are key personnel that play No more established by the

a significant role in the than 30 1,194,582.00 None 0.07% Company for the

Company’s operating employee stock

performance and mid- and long- ownership plan

term development.

Shares held by directors, supervisors and senior management under employee stock ownership plans during the
reporting period

Shares held at Shares held at the As a percentage

Name Office title the beginning of end of the of the Company’s

the reporting reporting period total share capital

period

Qi Cheng Director and Executive Vice President (Deputy

General Manager)

Xueqiao Qian Director, Vice President (Deputy General

Manager) and Chief Engineer 1,428,500.00 800,000.00 0.05%
Guoxiang Liu Vice President (Deputy General Manager)

Shaolin Yang Vice President (Deputy General Manager) and

CFO


Xiewu Jiang Vice President (Deputy General Manager)

Guocheng Mi Vice President (Deputy General Manager)

Zhongzhu Chen Vice President (Deputy General Manager)

Jing Wang Vice President (Deputy General Manager)

Zhijian Huang Vice President (Deputy General Manager) and

Board Secretary

Change of asset management organizations during the reporting period

□Applicable  Not applicable

Equity changes incurred by disposal of shares by holders, etc. during the reporting period

Applicable □ Not applicable

As of 29 December 2022, all the shares held under the Third Employee Stock Ownership Plan (888,500 shares,
accounting for 0.05% of the Company’s total share capital at the end of the reporting period) had been sold on the
open market. For further information, see the Announcement on the Sale of the Shares under the Third Employee
Stock Ownership Plan for Core Team & the EarlyTermination of the Plan (《关于核心团队员工持股计划之三期
计划出售完毕暨提前终止的公告》) (Announcement No. 2022-109), which has been disclosed on the media
designated for information disclosure, namely, the Securities Times (《证券时报》), China Securities Journal
(《中国证券报》), Shanghai Securities News (《上海证券报》), Securities Daily (《证券日报》), and
http://www.cninfo.com.cn dated 31 December 2022.

Exercise of shareholder rights during the reporting period

During the reporting period, the awardees under the Third and Fourth Employee Stock Ownership Plans attended
the First Extraordinary General Meeting of Shareholders in 2022 and exercised their rights as shareholders through
online voting.All of them voted in favour of the proposals considered at the meeting.

Other information about employee stock ownership plans during the reporting period

□Applicable  Not applicable

Changes in members of the management committees for employee stock ownership plans

□Applicable  Not applicable

Financial impact of employee stock ownership plans on the Company during the reporting period and the relevant
accounting treatments
Applicable □ Not applicable

According to relevant provisions under the Accounting Standards for Business Enterprises No. 11 - Share-based
Payments (《企业会计准则第 11 号——股份支付》), for equity-settled share-based payments in exchange for
employeeservicesthatareexercisableuponcompletionoftheservicewithinthevestingperiodoruponachievement
of prescribed performance conditions, the services acquired during the period should be charged to the relevant cost
or expense and capital reserve at each balance sheet date within the vesting period, based on the best estimate of the
number of exercisable equity instruments and at the fair value of the equity instruments at the date of grant. The
amortisation of expenses for the employee stock ownership plan implemented by the Company in 2022 stood at
RMB 28.8805 million and was charged to the relevant expense account and capital reserve.

Termination of employee stock ownership plans during the reporting period

Applicable □ Not applicable

During the reporting period, all the shares held under the Third Employee Stock Ownership Plan were sold.As per

the CSRC’s Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plans in Listed
Companies(《关于上市公司实施员工持股计划试点的指导意见》),theGuidelinesNo.1oftheShenzhenStock
Exchange for the Self-regulation of Listed Companies—the Standard Operation of Main Board Listed Companies
(《深圳证券交易所上市公司自律监管指引第 1 号——主板上市公司规范运作》), and the Company’s Third
Employee Stock Ownership Plan for Core Team (《核心团队员工持股计划之三期计划》), the Company
convened a meeting of the holders under the Third Employee Stock Ownership Plan on 9 February 2023, at which
the Proposal on the Liquidation Report for the Third Employee Stock Ownership Plan for Core Team (《关于〈核
心团队员工持股计划三期计划清算报告〉的议案》), and the Proposal on the Termination of the Third
Employee Stock Ownership Plan (《关于终止三期持股计划的议案》). As such, the early termination of the
Third Employee Stock Ownership Plan was approved upon the completion of the implementation of the plan.

Other information
None.
3. Other Employee Incentive Measures
□Applicable  Not applicable

XII. Establishment and Implementation of the Internal Control System during the Reporting
Period

1. Establishment and Implementation of the Internal Control System

(I) Control environment

The Company has set up a favorable governance structure and organization structure and relevant control systems.
It attaches great importance to the favorable corporate culture and has formed a relatively complete internal control
systemin terms of business management, capital management, accounting information system management, human
resources and compensation management, information communication, and disclosure management.

(1) Governance structure

According to the requirements of relevant laws, regulations, and the Articles of Association (《公司章程》), the
Company has set up the General Meeting of Shareholders, the Board of Directors, the Supervisory Committee
(hereinafter referred to as the "Three Meetings") and the Senior Management. Furthermore, it has specified their
rights and obligations in the Articles of Association and formulated the rules of procedure to ensure the explicit
division of labor and the fulfillment of their duties and responsibilities.

The General Meeting of Shareholders is the high authority of the Company, which enjoys the legal rights stipulated
by laws and regulations and the Articles of Association. It shall, strictly by the law, exercise its right to vote for
major events such as the management principle of the Company, fund-raising, investment, and profit appropriation.
During the Reporting Period, the Company can hold "Three Meetings" on schedule according to the provisions of
relevant laws, regulations, and the Articles of Association. The documents for "Three Meetings" are complete and
filed. The decision-making process for major investment and financing has fulfilled the rules of procedure of the
Articles of Association and relevant rules. All the directors have attended the meetings with a diligent and
responsible attitude and practically fulfilled their obligations. The Supervisory Committee has played its role by
adopting certain ways of supervision. The Strategy Committee, the Audit Committee, the Remuneration and
Appraisal Committee and the Nomination Committee of the Board of Directors have driven the Board of Directors
to make scientific and efficientdecisions. Moreover, the resolutions of "Three Meetings"are well implemented.The
General Manager regularly organized and held manager meetings, conducted production and business operations,
instructed, coordinated, managed, and supervised the Company's functional departments and holding subsidiaries,
ensuring the normal business operation of the Company.

(2) Organizational structure

Based on the demand of principal business and management, the Company set up the President's Room,
Procurement Center, Haid College, Haid Research Institute, Marketing Center, Human Resource Center, Financial
Center, Operation and Development Center, Process and Information Management Center, Securities Department,
the President's Office, Party Working Committee Office, Project Management Office, Audit Center and other
functional departments. Each functional department has its specific division of labor. They fulfill their duties and
responsibilities while they mutually counterbalance and supervise. Based on the Company's business progress, the
Company continues to fully research and improve the core and key work tasks of each functional department so as
to improve the efficiency of the organization and refine the management and control mechanism.

(3) Development strategy

The StrategyCommittee of the Board of Directors is responsible for the formulation of the Company's development
strategies to instruct the Company's long-term and robust development. The Strategy Committee held meetings
regularlyor irregularlyto deliberate major strategic plans for the Company's development and adjustthe Company's
development objectives properly. The Company's business management team will formulate corresponding
objectives according to the strategic plans determined by the Strategy Committee and the divisions, branches, and
subsidiaries will formulate their development objectives accordingly.

(4) Corporate culture

The Company attaches great importance to the development of corporate culture. It fosters positive values and a
sense of social responsibility, advocates honesty, trustworthiness, dedication, and innovation, highlights customer
value, and focuses on employee growth and the spirit of teamwork. It adopts many approaches, such as regular
internal meetings, internal newspapers and publications, the Company's website, forum, the campaign of
rationalization proposal, and employee training, to penetrate the Company's values into the Company. In addition,
ithasproactivelyarrangedvariousthemedactivitiestoenhanceemployees'cohesionandteamspirit,thuspromoting
the developmentof corporateculture. Corporate culture has graduallybecome the value guidance for theCompany's
operating and management activities.
(5) Procedures and systems

The Company formulates tailored systematic systems and procedures for the professional work of specialized
departments, implements them throughout the Company, and improves the Company's duplicating and controlling
capability of management. For instance, the Company has developed and continued to improve policies, such as
talent recruitment, talent development, talent promotion, appraisal, remuneration, and incentive. In terms of internal
control, it has set up and refined the capital plan management system, comprehensive budget management system,
accounts receivable management system, fixed asset management system, expense management system, contract
management system, future foreign exchange settlement management system, and internal audit system, etc. The
management systems are annually reviewed, discussed, and upgraded by the Company so as to make them more
adaptable to the Company's business and play the role in guiding and restraining the Company's business.

(6) Internal supervision

Under the leadership of the Board of Directors and the Audit Committee, the Company sets up the Audit Center,
which is independentofotherdepartments of the Company.TheAudit Center conducts internalaudits of the internal
control and financial situation of the Company and its holding subsidiaries through a combination of continuous
and special supervision and inspections. The internal audits can inspect and supervise the establishment and
implementation of the Company's internal control systems, the authenticity and integrity of financial information,
and the efficiency and effectiveness of operating activities.

(7) Information communication

The Company has set up an information and communication system to clarify the procedures for collecting,
processing, and transmitting relevant information of internal control so as to ensure the timely communication of
such information, thus promoting the effective operation of internal control.


A. The unblocked information collection channels. Internal information can be accessed by the Company through
many channels, including financial and accounting data, operation management data, investigation reports, special
information, internal publications, EPS, ERP/SAP, and financial sharing system. In addition, the Company can
access external information through trade associations and organizations, social intermediary organizations,
customers and suppliers, market surveys, letters and visits, network media, and relevant regulatory authorities.

B. The timely information transmission procedures. The Company can communicate and feedback relevant
information on internal control among internal management hierarchies, responsible departments, business links,
internal and external investors, creditors, customers, suppliers, intermediary agencies, and regulatory authorities
promptly. In case of any problems identified from the course of information communication, the Company can
timely report and solve such problems. Important information can be reported timely to the Board of Directors, the
Supervisory Committee, and the Management.

C. The safe operation of information systems. The Company has set up control systems related to the development
and maintenance, access and change, data input and output, document storage, and cyber security of information
systems so as to ensure the safe and stable operation of such systems. The Company also monitors and reviews the
logistics and capital flow of branches and subsidiaries through the information system. All data of branches and
subsidiaries are dually duplicated. The Process and Information Management Center will cross-examine the data of
the Group, branches, and subsidiaries regularly and irregularly. In addition, the Financial Center has assigned
dedicated personnel to conduct random inspections for data of information systems of branches and subsidiaries in
real-time.
(8) Human resources management

In accordance with the provisions of the Labor Law (《劳动法》) and relevant laws and regulations, the Company
has established complete management systems in terms of the recruitment, allocation, compensation, training,
performance management, and promotion of human resources. The Company adheres to the people-oriented
principle and signs labor contracts with all employees. The employees' sense of belonging and sense of mission has
been enhanced through the implementation of the performance appraisal system, motivating their enthusiasm for
work. The stable growth of the Company's operating results and employees' income has been achieved, laying a
foundation for the Company's sustainable development.

(II) Risk assessment
(1) Risk identification and analysis

The Company has a strong sense of risk prevention. It attaches great importance to the identification of risks in
advance.Itsolicitsextensive opinionsofrelevantpartiesonallmajorbusinessdecisions. Furthermore,theCompany
conducts comprehensive assessments of operating, financial, industrial, and market risks through legal assessment
and contract review, and joint signature. It also develops corresponding risk management measures, thus forming a
relatively refined risk management mechanism.

Meanwhile, the Company continues to collect information related to risk change based on the market situation and
business expansion for risk identification and analysis so as to adjust risk response strategies in time.

(2) Risk control

The Company has developed relatively complete provisions of risk control management to carry out the pre-event
assessment, in-event supervision, and post-event appraisal for the determination of the Company's financial
structure, the arrangement of financing structure, the estimation of financing cost, and the repayment plan for
financing. Feasible research mustbe conducted for all kinds of investments and the approvalauthorityis determined
according to the project size and the amount required. Contingency plans are formulated to cope with any negative
factors that might occur in the course of investment. The early warning system of financial risks and management
system of business contracts have been established to enhance the assessment and control over credit risks and
contract risks.
(III) Control activities


In order to reasonably guarantee the realization of all objectives, the Company has set up relevant control policies
and procedures, which mainly include: The approval control of transaction authorization, separate control of
incompatible duties, voucher and record control, property preservation control, independent inspection control,
electronic information system control, complete budgetary control, external guarantee control, information
disclosure control, and the monitoring of control.

(1) The approval control of transaction authorization

It has specified the scope, authority, procedures, responsibilities, and other relevant contents of the authorized
approval. All internal Management levels of the Company must exercise their functional authorities within their
authorized scope and the handling personnel must handle businesses with their authorities as well.

Based on the amount and nature of transactions, the Companyhas categorized the transaction authorization into two
levels, which are, general authorization and special authorization. In terms of general transactions, such as purchase
andsaleandthereimbursementofroutineexpenses,theCompanyadoptsthehierarchicalapprovalsysteminvolving
the responsible accountant, department head, financial manager, general manager, and chairman so as to ensure that
allbusinesses areapproved according toprocedures. In terms of non-conventionaltransactions, suchas relatedparty
transactions, major acquisitions, significant capital expenditure, stock issuance, bond issuance, and other major
transactions, must be approved by the Board of Directors or the General Meeting of Shareholders. The hierarchal
authorization has been conducted for transactions in different natures, thus effectively controlling risks.

(2) The separate control of incompatible duties

It has setup the systemof assigning responsibilitybyposition and internalcheck systemand formulated the position
responsibilities of each constituent department and its personnel through the division of authorities and
responsibilities, thus avoiding mistakes and corrupt practices. Based on reasonable labor of division and scientific
division of responsibilities and authorities, the incompatible duties can be separated and each person can
automatically check the work of the other person or multiple persons, thus taking shape of the mechanism of mutual
check and balance. The incompatible duties mainly include: Authorized approval, business handling, accounting
record, property preservation, supervision, and inspections.

(3) Voucher and record control

The Company strictly reviews original vouchers and reasonably formulates the transfer procedures of vouchers.
Vouchers of transactions must be formulated and submitted to the accounting department for recording in time. The
registered vouchers must be filed orderly.

(4) Property preservation control

Unauthorized personnel is strictly restrained from direct access to properties. Measures, such as periodic inventory,
property record, reconciliation of book balance and actual amount, and property insurance, are adopted to ensure
the security and integrity of various properties.

(5) Independent inspection control

Adedicated internal audit institution has been set up. The responsibilities and authorities of the internal supervision
for the internal audit institution and other internal institutions have been clarified. Meanwhile, the procedures,
methods, and requirements of internal supervision and the scope and frequency of daily supervision and special
supervision have been specified.The nature and cause of deficiencies in internal control identified fromsupervision
can be analyzed in time. Furthermore, remediation plans can be put forward in time. Such deficiencies and
corresponding remediation plans can be promptly reported to the Board of Directors, the Supervisory Committee,
or the Management in proper form.

(6) Electronic information system control

The Company has developed stricter policies for electronic information system control. Greater efforts have been
made in terms of the development and maintenance of electronic information systems, data input and output, and
document storage.
(7) Complete budgetary control

The Company has carried out the complete budgetary management to strictly control the off-budget capital
expenditure. The financial sharing system and dedicated personnel will supervise, analyze, and appraise the
implementation of the budget. All divisions/branches and subsidiaries/business departments will formulate
budgetaryplans annually, which willbe regularlyanalyzed bythe financialdepartmentso as to restrain such budget.
(8) External guarantee control

The Company controls the external guarantee in accordance with the law-based, prudent, mutually beneficial, and
safe principle so as to strictly prevent risks caused by the guarantee. The Company has formulated relevant
management systems to reasonably ensure the authenticity and integrity of guarantee business and the legitimacy
and compliance of review procedures.
(9) Information disclosure control

The Company has developed the Information Disclosure System (《信息披露制度》), the Internal Reporting
System of Material Information (《重大信息内部报告制度》), and theAccountability Policy for Material Errors
in Information Disclosure of the Annual Report (《年报信息披露重大差错责任追究制度》). The systems have
specified the responsible person, principle, and main contents of information disclosure, the disclosure, working
procedure, management, and accountability mechanism of major events, and the measures to deal with employees
violating rules.

The Company has strictly fulfilled the information disclosure obligations according to relevant laws, regulations,
and rules to disclose information truthfully, accurately, completely, and timely, thus ensuring that all shareholders
have an equal opportunity to obtain information.

(10) The monitoring of control

The Company checks the implementation of internal control systems regularly and irregularly, which mainly
includes: The inspection of the Board of Directors of the Company, the inspection of theAudit Committee, and the
inspection of internal audit departments.All these inspections can ensure the effective operation of internal control
activities.

Through the inspection and supervision activities of internal control and the effective measures for the problems
identified from the inspection of regulatory authorities, the Company continues to supervise and inspect business
activities and the implementation of main internal control systems and continuously puts forward opinions and
suggestions on improvement. All these efforts have effectively prevented the risks of internal control and
safeguarded the normal operation of business management activities. It has played important roles in guiding and
driving the enhancement of standardized operation, refinement of corporate governance, and improvement of
management level.

2. Material Internal Control Deficiencies Identified for the Reporting Period

□ Yes  No

XIII. The Company’s Management and Control of Subsidiaries during the Reporting Period

Problem Solution

Consoli s arising Solutions impleme Subseque
Company name Consolidation plan dation in taken ntation nt

progress consolid progress solutions
ation

Bobai Haihe As per the applicable regulations of the CSRC Complet

Veterinary and the Shenzhen Stock Exchange, as well as ed N/A N/A N/A N/A

Medicine Co., the Company’s Articles ofAssociation, the


Ltd. Company provided compliance guidance for the

target company in organizational structure,

personnel adjustment, internal controls,

financial system, etc., and has included the

target company in the Company’s system for

unified management.

As per the applicable regulations of the CSRC

and the Shenzhen Stock Exchange, as well as

Changde Haide the Company’s Articles ofAssociation, the

Veterinary Company provided compliance guidance for the Complet

Medicine target company in organizational structure, ed N/A N/A N/A N/A

Operation Co., personnel adjustment, internal controls,

Ltd. financial system, etc., and has included the

target company in the Company’s system for

unified management.

As per the applicable regulations of the CSRC

and the Shenzhen Stock Exchange, as well as

Suixi Haihe the Company’s Articles ofAssociation, the

Veterinary Company provided compliance guidance for the Complet

Medicine Co., target company in organizational structure, ed N/A N/A N/A N/A

Ltd. personnel adjustment, internal controls,

financial system, etc., and has included the

target company in the Company’s system for

unified management.

As per the applicable regulations of the CSRC

and the Shenzhen Stock Exchange, as well as

Yangchun the Company’s Articles ofAssociation, the

Haihe Company provided compliance guidance for the Complet

Veterinary target company in organizational structure, ed N/A N/A N/A N/A

Medicine Co., personnel adjustment, internal controls,

Ltd. financial system, etc., and has included the

target company in the Company’s system for

unified management.

As per the applicable regulations of the CSRC

and the Shenzhen Stock Exchange, as well as

Luoding Haihe the Company’s Articles ofAssociation, the

Veterinary Company provided compliance guidance for the Complet

Medicine Co., target company in organizational structure, ed N/A N/A N/A N/A

Ltd. personnel adjustment, internal controls,

financial system, etc., and has included the

target company in the Company’s system for

unified management.

XIV. Self-Assessment Report or Independent Auditor’s Report on Internal Control

1. Internal Control Self-Assessment Report

Disclosure date of internal control self- 25 April 2023
assessment report

Index to disclosed internal control self- www.cninfo.com.cn
assessment report

Assessed entities’combined assets as a 100.00%
percentage of consolidated total assets
Assessed entities’combined operating

income as a percentage of consolidated 100.00%
operating income

Internal control deficiency identification standards

Type Financial-reporting related Non-financial-reporting related

Amaterial deficiency refers to a deficiency or Material deficiencies: (1) The internal
a deficiency group that consists of multiple control environment is invalid; (2) Any
Nature standard deficiencies that may cause a great deviation leak of insider information about any
from the control objective. It is considered a investment in external parties, asset
material financial-reporting internal control restructuring, etc. against regulations


deficiency if any of the following cases causes any severe fluctuations in the
occurs: (1) Any of the Company’s directors, Company’s stock price or any materially
supervisors orseniormanagement is involved adverse impact on the Company’s image;
in a serious fraud; (2) The Company corrects (3) The violation of the Company’s
its disclosed financial statements for multiple decision-making procedure in any
times; (3) certified public accountants significant event causes a significant
identifies a material misstatement in the economic loss to the Company; or (4)The
current financial statements which the independent auditor identifies any other
Company has failed to identify during its material deficiencies in the Company.

internal control process; or (4) The Serious deficiencies: (1) The Company
Company’s Audit Committee and internal provides any guarantee or conducts any
audit organ maintain invalid supervision over derivative financial instrument
internal control. transaction without due authorization or
A serious deficiency refers to a single performance of the corresponding
deficiency or a deficiency group including information disclosure duty; (2) A severe
other deficiencies that is less serious than a loss of key talent occurs; (3) The
material deficiency but may still cause a Company is punished or a materially
deviation from the control objective. It is adverse impact is made to itsimage dueto
considered a serious financial-reporting deviation from governing policies,
internal control deficiency if any of the measurement errors, etc.; (4) The
following cases occurs: (1) The Company independent auditor identifies any other
does not select and adopt its accounting serious deficiencies in the Company.

policies as per the generally accepted An ordinary deficiency refers to any
accounting standards; (2) The Company does deficiency that is neither a material
not formulateanti-fraud proceduresor control deficiency nor a serious deficiency.

measures; (3) The Company has no control

systems for the accounting treatment of non-

conventional or special transactions; or (4)

There are one or multiple deficiencies in

controls over the financial reporting process

and there is no reasonable assurance that the

financial statements prepared are truthful and

accurate.

An ordinary deficiency refers to any

deficiencythat is neither amaterial deficiency

nor a serious deficiency.

Material deficiency: Direct loss caused to
Material deficiency: misstated amount > 3% the Company (hereinafter referred to as
of profit before income tax, misstated amount “loss amount”) > 3% of profit before
＞3% of net asset value. incometax, loss amount＞3%ofnet asset
Serious deficiency: 1% of profit before value.

Quantitative standard income tax＜misstated amount≤3% ofprofit Serious deficiency: 1% of profit before
before income tax, 1% of net asset value < income tax＜loss amount≤3% of profit
misstated amount ≤ 3% of net asset value. before income tax, 1% of net asset value
Ordinary deficiency: misstated amount ≤1% < loss amount ≤ 3% of net asset value.
of profit before income tax, misstated amount Ordinary deficiency: loss amount ≤1%
≤1% of net asset value. of profit before income tax, loss amount
≤1% of net asset value.

Number of material financial-reporting 0

internal control deficiencies

Number of material non-financial- 0

reporting internal control deficiencies

Number of serious financial-reporting 0

internal control deficiencies
Number of serious non-financial-reporting 0
internal control deficiencies

2. Independent Auditor’s Report on Internal Control

Applicable □ Not applicable

Opinion paragraph

The Company maintained, in all material respects, effective internal control over financial reporting as of 31 December 2022, based


on the Basic Rules on Enterprise Internal Control (《企业内部控制基本规范》) and other applicable regulations.

Report disclosed or not Disclosed

Disclosure date 25 April 2023

Index to the disclosed report http://www.cninfo.com.cn

Type of opinion Unmodified unqualified opinion

Material defects in internal control not related to financial No

reporting

Indicate whether any modified opinion is expressed in the IndependentAuditor’s Report on Internal Control

□ Yes  No

Indicate whether the Independent Auditor’s Report on Internal Control is consistent with the internal control self-
assessment report issued by the Company’s Board of Directors

 Yes □ No

XV. Remediation of Problems Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
Not applicable.


Section V. Environmental and Social Responsibility

I. Material Environmental Issues

Whether the Company and its subsidiaries are key pollutant discharging units as published by the environmental
protection authority
 Yes □ No

Policies and industry standards on environmental protection

The Company has been in strict compliance with the applicable laws, regulations, policies and industry standards,
including the Law of the People's Republic of China on Environmental Protection (《中华人民共和国环境保护
法》), the Law of the People's Republic of China on Prevention and Control of Water Pollution (《中华人民共和
国水污染防治法》), the Law of the People's Republic of China on Prevention and Control of Air Pollution (《中
华人民共和国大气污染防治法》), the Law of the People's Republic of China on Prevention and Control of Noise
Pollution (《中华人民共和国噪声污染防治法》), the Law of the People's Republic of China on Prevention and
Control of Environmental Pollution by Solid Waste (《中华人民共和国固体废物污染环境防治法》), the
Emission Standard of Air Pollutants for Boilers (《锅炉大气污染物排放标准》), the Integrated Emission
Standard ofAir Pollutants (《大气污染物综合排放标准》), the Emission Standards for Odor Pollutants (《恶臭
污染物排放标准》), the Standard for Fugitive Emission of Volatile Organic Compounds (挥发性有机物无组织
排放控制标准》), and the Discharge Standard of Water Pollutants for Meat Packing Industry (《肉类加工工业水
污染物排放标准》).
Administrative licenses of environmental protection

The Company and its subsidiaries prepared environmental impact reports before project implementation and
submitted to the environmental authority for review and approval in accordance with the requirements of
environmental laws and regulations. They commenced project construction after obtaining the approval and carried
out construction works strictly in accordance with the requirements of environmental impact assessment.
Furthermore, they went through the procedures for the acceptance of project completion for environmental impact
assessment in accordance with laws and obtained the pollutant discharge permit.

Industry discharge standards and discharge of pollutants in production and operation

Types of Names of

Name of major major The The

the pollutants pollutants Discharge number Distribution concentrat Pollutant Total Total Excess
company and and method of of discharge ion/intensi discharge dischar discharge dischar
or characteris characteris discharg outlets ty of the standards ge approved ge
subsidiary tic tic e outlets discharge

pollutants pollutants

Waste gas: Waste gas Particulate Emission SO2: SO2:

Particulate from matter: Standard ofAir 0.118t/a 0.118t/a;

matter; boilers 20mg/m³; Pollutants for ; NOx:

SO2; discharged SO2: Boilers NOx: 1.769t/a;

NOx; after being Boiler 35mg/m3; (Guangdong 1.769t/a Particulat

Mercury treated chimney; NOx: Province) (《锅 ; e matter:

and its with a Canteen 150mg/m3 炉大气污染物 Particul 0.393t/a

Guangzho compound bagged Waste chimney; ; 排放标准（广 ate COD:

u Haiwei Waste gas; s; Flue gas pulse dust gas: 4; Workshop Mercury 东省）》) (DB- matter: 0.087 t/a ;

Feed Co., Waste blackness collector, Waste waste gas and its 44/765-2019); 0.393t/a BOD: None
Ltd. water Waste production water: 1 treatment compoun Emission COD: 0.019 t/a;

water: odour gas plant outlet ds: 0.05 Standard ofAir 0.087 Suspende

BOD; through an Waste water: mg/m3; Pollutants for t/a ; d matter:

COD; odour External Flue gas Boilers (《锅炉 BOD: 0.058 t/a;

Suspended treatment sewer blackness: 大气污染物排 0.019 Ammonia

matter; system 1 ; t/a; nitrogen:

Ammonia (pre- BOD: 放标准》) (GB Suspen 0.010 t/a;

nitrogen; spraying + 20mg/L; 13271-2014); ded Animal

Animal biofilter + COD: Emission Limits matter: and


and absorption 90mg/L; ofAir Pollutants 0.058 vegetable

vegetable tower), Suspended (《大气污染物 t/a; oils:

oils kitchen matter: 60 排放值》) (DB- Ammon 0.010t/a

fumes mg/L; 44/27-2001); ia

treated by Ammonia Discharge nitroge

electrostati nitrogen: Limits of Water n: 0.010

c fume 15mg/L; Pollutants of t/a;

treatment PH: 6- Guangdong Animal

devices 9mg/L; Province (广东 and

and Animal 省水污染排放 vegetab

discharged and 限值) (DB- le oils:

from the vegetable 44/26-2001) 0.010t/a

exhaust oils:

pipe 10mg/L

Waste

water:

discharged

into the

municipal

network

upon

meeting

the

standard

through

three

levels of

treatment

ponds

Waste gas COD:

Waste from 3.14t/a;

water: boilers Particulate Emission Suspen

Total discharged matter: Standard ofAir ded COD:

phosphoru after being Boiler 20mg/m³; Pollutants for matter: 3.14t/a;

s; Total treated chimney; SO2: Boilers (《锅炉 1.82t/a; Suspende

nitrogen; with a Waste gas 0.6mg/m3; 大气污染物排 Ammon d matter:

COD; bagged treatment NOx: ia 1.82t/a;

Fujian Waste gas; Ammonia pulse dust plant outlet 150mg/m3 放标准》) nitroge Ammonia

Haisheng Waste nitrogen; collector, 3 in Workshop ; (GB13271- n: nitrogen: None
Feed Co., water PH; production 1; Waste gas Mercury 2001); Emission 0.2t/a; 0.2t/a;

Ltd. Suspended odour gas treatment and its Limits ofAir Total Total

matter through plant outlet compoun Pollutants (《大 nitroge nitrogen:

Waste gas: two odour in Workshop ds: 0.05 气污染物排放 n: 2.52t/a;

Particulate treatment 3 mg/m3; 值》) 2.52t/a; Total

matter; systems Flue gas (GB13223- Total phosphoru

SO2; (acid + blackness: 2011) phosph s: 0.11t/a

NOx; Flue alkali 1 orus:

gas spray 0.11t/a

scrubbing)

Low Odour: Emission

nitrogen 131 Standards for

combustio (dimensio Odor Pollutants

n device; nless); GB14554-93

Waste gas: activated Ammonia/ (《恶臭污染物 NOx:

Odour carbon Ammonia 排放标准 0.0981t

concentrat adsorption gas: GB14554- /a;

ion; device; 0.52mg/m³ 93》); Emission SO2:

Ammonia/ low ; Standard ofAir 0.096t/a NOx:

Ammonia nitrogen Hydrogen Pollutants for ; 0.0981t/a;

gas; combustio sulphide: Boilers for Smoke SO2:

Hydrogen n device; Boiler <0.01mg/ Chengdu and 0.096t/a;

sulphide; high outlets; m³; DB51/2672- dust: Smoke

Sichuan SO2; efficiency animal SO2: <3; 2020 (《成都市 0.0576t and dust:

Hailinger Waste gas; Particulate + house Particulate 锅炉大气污染 /a; 0.0576t/a;

Biopharm Waste matter; activated 5 outlets; matter: ＜ 物排放标准 COD: COD: None
aceutical water NOx; carbon sewage 1.2mg/m³; DB51/2672- 0.51t/a; 9.06t/a;

Co., Ltd. Flue gas adsorption treatment NOx: 2020》); Ammon Ammonia

blackness device station 28mg/m³; Standard for ia nitrogen:

Waste Waste outlets Flue gas Fugitive nitroge 0.453t/a;T

water: PH; water blackness: Emission of n: otal

Ammonia treatment
nitrogen; station, PH: 7.24; Compounds GB ;Total s;0.092t/a

COD; adopting a Ammonia 37822-2019 phosph

Total hydrolysis nitrogen: (《挥发性有机 orus:

phosphoru acidificati 10.41mg/ 0.0029t

s on + L; 物无组织排放 /a

anoxic + COD: 控制标准 GB

aerobic 11.3mg/L; 37822-2019》);

process, Total Discharge

discharged phosphoru Standards of


to the s: 0.17 Water Pollutants

park’s mg/L for

sewage Pharmaceutical

network Industry-Bio-

upon pharmaceutical

meeting Category GB

the 21907-2008

standard (《生物工程类

through 制药工业水污

treatment 染物排放标准

GB

21907-2008》)

Level-1 COD:

COD: standards for the 3.14t/a;

86mg/L; 2nd time Suspen COD:

Waste Suspended interval of the ded 3.14t/a;

water: Discharge matter: Discharge matter: Suspende

Total d to 50mg/L; Limits of Water 1.82t/a; d matter:

phosphoru Xiaodong Ammonia Pollutants of Ammon 1.82t/a;

Gaozhou s; Total River Within the nitrogen: Maoming City ia Ammonia

Sanhe Waste nitrogen; upon waste water 5.6mg/L; (《茂名市水污 nitroge nitrogen:

Animal water COD; meeting 1 treatment Total 染物排放限 n: 0.2t/a; None
Husbandry Ammonia the area nitrogen: 值》); Pollutant 0.2t/a; Total

Co., Ltd. nitrogen; standard 69mg/L; Discharge Total nitrogen:

PH; through Total Standards for nitroge 2.52t/a;

Suspended treatment phosphoru Livestock and n: Total

matter s: Poultry Farming 2.52t/a; phosphoru

2.9mg/L; Industry (《畜 Total s: 0.11t/a

PH: 6-9 禽养殖业污染 phosph

物排放标准》) orus:

0.11t/a

Emission

Standards for

Waste gas: Odor Pollutants

NOx: (《恶臭污染物

Waste gas: 100mg/N 排放标准》)

SO2; m3; Odour (GB14554-

NOx; concentrat 1993);

Ringelman ion: 2000 Emission

emittance; Waste Standard ofAir

Particulate water: Pollutants for

matter; PH: 6-8.5; Boilers of COD:

Odour Animal Shandong 801.36t

concentrat and Province (《山 /a;

ion; vegetable 东省锅炉大气 Ammon

Hydrogen Waste oils: 污染物排放标 ia COD:

sulphide; water: 50mg/L; 准》) nitroge 801.36t/a;

Ammonia discharged Suspended n: Ammonia

Waste continuous 3 workshop matter: (DB37/2374- 53.15t/a nitrogen:

Yiyuan Waste gas; water: ly; outlets, 4 300mg/L; 2018); ; 53.15t/a;

Haiying Waste COD; Waste gas: 10 boiler Ammonia Discharge SO2: SO2: None
Food Co., water Ammonia discharged outlets, 3 nitrogen: Standard of 0.2248t 0.2248t/a;

Ltd. nitrogen; in an sewage 45mg/L; Water Pollutants /a; NOx:

Total organized outlets Total for Meat NOx: 0.315t/a;

phosphoru way; nitrogen: Packing 0.315t/a Particulat

s; Total Fugitive 70mg/L; Industry (《肉 ; e matter:

nitrogen; discharge COD: 类加工工业水 Particul 0.0674t/a

PH; 500mg/L; 污染排放标 ate

Suspended Total 准》) matter:

matter; phosphoru (GB13457-92); 0.0674t

Animal s: 8mg/L; Wastewater /a

and Fecal Quality

vegetable coliform: Standards for

oils; Fecal 10000; Discharge to

coliform; Five-day Municipal

Chromatic BOD: Sewers (《污水

ity 250mg/L; 排入城镇下水

Chromatic 道水质标准》)

ity: 64

(GB/T31962-

2015)

Waste gas: Waste 5 waste gas Waste gas: Level-2 COD5. COD6.97t

SO2; water: outlets (2 SO2: standards of 24t/a; /a;

Linxi NOx; Flue discharged boiler 10mg/m3 Discharge Ammon Ammonia

Haiying Waste gas; gas into the outlets, 3 NOx: Standard of ia nitrogen0.

Food Co., Waste blackness; municipal 6 production 30mg/m3; Water Pollutants nitroge 67t/a; None
Ltd. water Particulate network waste gas Particulate for Meat n0.128t Total

matter; upon outlets); matter: Packing /a; Total phosphoru

Odour meeting 1 waste 5mg/m3; Industry (《肉 phosph s0.021 t/a;

concentrat the water outlet Ammonia: 类加工工业水 orus0.0 Total


ion; standard 4.9kg/h; 污染物排放标 71 t/a; nitrogen0.

Hydrogen through Hydrogen 准》) Total 716t/a;

sulphide; treatment sulphide: (GB13457- nitroge SO20.288

Ammonia Waste gas: 0.33kg/h; 1992); n2.811t/ t/a;

Waste discharged Odour Emission a; NOx1.464

water: in an concentrat Standard ofAir SO20.1 t/a

COD; organized ion Pollutants for 44t/a;

BOD; way (dimensio Boilers (《锅炉 NOx0.7

Ammonia nless): 大气污染物排 32t/a

nitrogen; 2000 放标准》) (GB

Total Waste 13271-2014);

phosphoru water: Emission

s; Total COD: Standards for

nitrogen; 100mg/L; Odor Pollutants

PH; BOD: (《恶臭污染物

Suspended 40mg/L; 排放标准》)

matter; Suspended

Animal matter: (GB14554-

and 100mg/L; 1993)

vegetable Ammonia

oils; Fecal nitrogen:

coliform; 20mg/L;

Anionic Total

surfactants nitrogen:

40mg/L;

Total

phosphoru

s: 3mg/L;

PH: 6-9;

Animal

and

vegetable

oils:

20mg/L;

Table-2

standards of

Emission

Standards for

Odor Pollutants

(GB14554-93)

(《恶臭污染物

排放标准

(GB14554-

93)》);

Emission

Standard ofAir

Pollutants for

Waste gas: Boilers (《锅炉

Waste discharged 大气污染物排 COD:

water: in an 放标准》) 0.951t/a

COD; organized COD: (DB37 /2374- ;

Ammonia way; 28.4mg/L; 2018); Ammon COD:

nitrogen; Fugitive Ammonia Level-3 ia 0.951t/a;

Total discharge 5 waste gas nitrogen16 standards in nitroge Ammonia

Jiaxiang phosphoru Waste outlets .3 mg/L; Table 3 of n: nitrogen:

Haiying Waste gas; s; Total water: 1 waste Total Discharge 0.0346t 0.0346t/a;

Food Co., Waste nitrogen; discharged 7 water outlet nitrogen49 Standard of /a; Total None
Ltd. water pH into the 1 rain water .1 mg/L; Water Pollutants Total nitrogen:

Waste gas: municipal outlet Total for Meat nitroge 1.23t/a

Odour network phosphoru Packing n: Total

concentrat upon s0.522mg/ Industry 1.23t/a phosphoru

ion; meeting L; (GB13457-92) Total s: 0.186t/a

Hydrogen the pH7.45 (《肉类加工工 phosph

sulphide; standard 业水污染排放 orus:

Ammonia through 标准(GB13457- 0.186t/a

treatment 92)》);

Grade-B

standards in

Table 1 of

Wastewater

Quality

Standards for

Discharge to

Municipal

Sewers

(GB/T31962-

2015) (《污水

排入城镇下水

道水质标准


(GB/T31962-

2015)》)

Treatments of pollutants

During the reporting period, all key pollutant discharging subsidiaries of the Company have been equipped with
pollution control facilities, which are maintained regularly to ensure their effective operation. Specifically: (1)
Exhaust gas: It is discharged after being reduced the concentration and content of ammonia, hydrogen sulfide, and
offensive smellthrough manyprocesses including wetdustremoval, activated carbon, deodorization of spraytower,
and light and oxygen purification; (2) sewage (wastewater): It is discharged after being treated to reach the standard
through A/O process, AAO process, solid-liquid separation + cover lagoon anaerobic + two-stage AO + Fenton
treatmentprocess;(3) solid wastes:Relevantfacilities and equipmentare equippedtorealize harmless and resource-
based treatment.
Self-monitoring program for environment

The aforesaid subsidiaries have formulated environmental self-monitoring plans in accordance with the
requirements of local environmental protection authorities and contacted qualified monitoring units to conduct self-
monitoring on a regular basis. Besides, they disclosed relevant information or filed with local environmental
protection authorities as required. Furthermore, some subsidiaries engaged external professional agencies to carry
out phased environmental monitoring. The supervision of the Company on environmental protection has been
intensified by the combination of the Company's self-monitoring and the third-party professional monitoring.

Emergency plan for emergent environmental incidents

During theReportingPeriod,in order to implementthe EmergencyResponse Lawof thePeople's Republic of China
(《中华人民共和国突发事件应对法》), other relevant laws, regulations and documents, and to prevent, prepare
for andrespond toenvironmentalemergencies, as well as to protectthelives andreducepropertylosses, all branches
and subsidiaries have formulated contingency plans for environmental protection in accordance with the
requirements of local environmental protection authorities and have carried out drills under the contingency plans.
Meanwhile, in accordance with the requirements in the Management Measures of Haid Group for Safety and
Environmental Protection Emergency Preparation and Response (《海大集团安全环保应急准备和响应管理办
法》), the above-mentioned subsidiaries have established a top-down organizational structure for emergency
response and allocated personnel and resources to enhance the response to risks and events of different degrees, and
strengthen the collaboration between various departments.

Spending on environmental protection and payment of environmental protection tax

During the reporting period, the Companyspentover RMB 70 million in environmental managementand protection
and paid environmental protection tax in full in accordance with the law.

Measures taken to reduce carbon emissions during the reporting period and the results

Applicable □ Not applicable

The Company has proactively explored energy conservation technologies and processes to reduce energy
consumption and the relevant emissions leading to climate change. Meanwhile, in recent years, the Company has
continued to push forward the energy transformation plans. Clean energies have been utilized in operating sites to
reduce the dependence on conventional fossil fuels. For current projects, the Company has widely carried out the
phaseout program of coal-fired boilers. So far, the Company has preliminarily realized the conversion to natural gas
boilers and biomass vaporizers. For newly-built projects, the Company has allocated natural gas boilers, biomass
boilers, and other environmental protection equipment during the construction phase of these projects. And
photovoltaic power generation equipment have been installed as a pilot program to increase the use of clean energy.
Administrative penalties imposed for environmental issues during the reporting period


Name of the Regulation Impact on the Remediation

company or Reason for penalty violated Penalty Company measures

subsidiary

Pay fines in full and
It violated the on time, install

provisions of The filter cotton in activated carbon

Article 45 of the the treatment adsorption bins and
Law of the facilities is heavily turn on waste gas

People's Republic clogged and not It was instructed to No treatment equipment;
Linxi Haiying of China on the replaced in time, correct the significantly strengthen personnel
Food Co., Ltd. Prevention and and the pollution unlawful act and adverse impact education, training

Control of control facilities fined RMB 50,000 and supervision;

Atmospheric cannot achieve the conduct occasional
Pollution (《中华 treatment effect monitoring and

人民共和国大气 inspection of volatile
污染防治法》) organic compounds
waste gas

It violated the

provisions of Item

2 ofArticle 83 and

Article 10 of the Discharge of water It was instructed to

Law of the pollutants was in correct the No Purchase total sewage
Linxi Haiying People's Republic excess of the total unlawful act and significantly disposal and enhance
Food Co., Ltd. of China on the emission control fined RMB adverse impact sewage treatment

Prevention and targets for key 200,000 capacity

Control of Water water pollutants

Pollution (《中华

人民共和国水污

染防治法》)

Other environmental information that should be disclosed

None
Other information on environmental protection
None
II. Fulfillment of Social Responsibility

Please refer to the “Haid Group: Social Responsibility Report 2022” (《海大集团：2022年度社会责任报告》)
disclosed by the Company on the media designated for information disclosure.

III. Efforts in Poverty Alleviation and Rural Revitalization

As a responsible company focused on agriculture, rural areas, and farmers and rooted in agriculture and animal
husbandry, Haid Group has exerted well the business, technology, service, model, talent, and capital advantages to
promote the organic integration of agricultural industry chain construction and rural revitalization, laying a
foundation for revitalizing the rural economy. In 2022, the Company was awarded the "Annual Rural Revitalization
Pioneer Enterprise" by Guangzhou Daily, the Golden Cup of Guangdong Poverty Alleviation and Relief Cotton
Tree Cup by Guangdong Poverty Alleviation and Development Taskforce, and the 2022 Dream Maker Public
Welfare Conference -Annual Contribution to Rural Revitalization by Southern Weekend.

With hundreds of technical service stations for rural revitalization, more than 9,000 service engineers, and a number
of reputable animal healthcare brands, for more than 20 years, over ten thousand Haid people have been dedicating
themselves to agricultural technology popularization, shuttling through the ponds and pens in the countryside.
Leveraging the advantages of a complete industrial chain covering seedlings, feed, biopharmaceuticals, animal
farming, etc., as well as the strong R&D and innovation capabilities, Haid Group uses advanced farming concepts,
technologies and products to effectively help millions of farmers in a scientific way and increase their income.
Through providing agricultural science and technology services for the "last mile", as well as promoting the

industrialization of agriculture, the professionalization of farmers and the popularization of agricultural technology,
Haid plays its part for rural revitalization with its advanced technologies.

For further information, please refer to the “Haid Group: Social Responsibility Report 2022” (《海大集团：2022
年度社会责任报告》) disclosed by the Company on the media designated for information disclosure.

Section VI. Material Matters
I. Performance of Undertakings

1. Undertakings made by parties involved in undertakings including the Company’s actual
controller, shareholders, related parties, acquirers and the Company during the reporting
period or prior periods but subsisting to the end of the reporting period

Applicable □ Not applicable

Term Compli
Party Types of Under of ance
Undertaking involved in undertaking Details of undertaking taking undert with
undertaking date aking underta
king

1. Mr. Hua Xue guarantees no prejudice to the

interests of Haid Group and its other

shareholders by virtue of his capacity as the

actual controller. 2. Mr. Hua Xue guarantees

Undertaking that, as long as he serves as the actual controller

on of Haid Group, he and his wholly-owned

Undertaking horizontal subsidiaries, controlled subsidiaries and 27

made on initial competition, actually controlled companies (except Haid Nove Long In strict
public offering Hua Xue related party Group) will not engage in business activities mber term complia
or refinancing transaction that, directly or indirectly, compete with or 2009 nce

and capital constitute competitive threat to the principal

occupation businesses or major products of Haid Group in

any form, including investment, acquisition or

merger of companies, enterprises or other

economic organizations the principal businesses

or major products of which are the same with or

similar to those of Haid Group.

1. It guarantees no prejudice to the interests of

Haid Group and other shareholders of Haid

Group by virtue of its capacity as the

controlling controller. 2. Guangzhou Haihao

Undertaking guarantees that, as long as it is the controlling

on shareholder of Haid Group, it and its wholly-

Undertaking Guangzhou horizontal owned subsidiaries, controlled subsidiaries 27

made on initial Haihao competition, (except Haid Group) and actually controlled Nove Long In strict
public offering Investment related party companies will not engage in business activities mber term complia
or refinancing Co., Ltd. transaction that, directly or indirectly, compete with or 2009 nce

and capital constitute competitive threat to the principal

occupation businesses or major products of Haid Group in

any form, including investment, acquisition or

merger of companies, enterprises or other

economic organizations the principal businesses

or major products of which are the same with or

similar to those of Haid Group.

The Company guarantees no provision of loans, From

Undertakings loan guarantees, or financial assistance in other 20

related to Guangdong Other forms to the awardees for acquisition of 20 May In strict
equity Haid Group undertaking relevant interests under the 2021 Share Option May 2021 complia
incentives Co., Limited s Incentive Plan of Guangdong Haid Group Co., 2021 to 27 nce

Limited (《广东海大集团股份有限公司 2021 June

年股票期权激励计划》). 2027

Undertakings Guangdong Specific conditions, proportions and intervals From

made to Haid Group Dividend of cash dividends: The following conditions 6 May 6 May Expired
minority Co., Limited undertaking shall be satisfied when the company makes 2019 2019

shareholders of distribution of cash dividends: (1) The profits to 9


the Company and the accumulative distributable profit (i.e., May

tax after the Company makes up losses and 2022

make allocation to reserves) realized by the

company in the year or half year is positive in

value and the cash flow is sufficient. The

distribution of cash dividend will not affect the

Company's subsequent operations; (2) The

auditor has issued a standard unqualified audit

report on the Company's annual financial report

(if the Company distributes the interim

dividend, the auditor shall have issued a

standard unqualified audit report on the

Company's financial report for the previous

year); (3) The Company has no plan on material

external investment or major cash outlays

within the next twelve months (except

proceeds-financed investment projects). A

major investment plan means that the

accumulated expenditure of the Company to be

used for external investment and purchase of

assets or equipment within the next twelve

months will reach or exceed 30% of the

Company's latest audited net assets. (4) Other

circumstances in which the Board considers it

is not suitable for distribution of cash

dividends. In compliance with the above

conditions, the Company will, in principle,

make a distribution of cash dividend once a

year. The Board of the Company may propose

interim cash dividends based on the

profitability of the Company when the relevant

regulations allow. In principle, the Company's

profits accumulated in cash every three years

should not be less than 30% of the annual

average distributable profit realized in the three

years.

The following conditions must be met when the

Company implements cash dividends:

(1) The Company achieves a profit for the year

or half-year and the accumulated distributable

profit (i.e. the after-tax profit after making up

for losses and setting aside reserve) is positive,

the cash flow is sufficient, and the

implementation of the cash dividend will not

affect the Company’s going-concern ability;

(2) The auditor issues a report with an

unmodified unqualified audit opinion on the

Company's financial statements for the year (if

Undertakings the Company implements an interim dividend, From

made to Guangdong the auditor shall have issued a report with an 9 May In strict
minority Haid Group Dividend unmodified unqualified audit opinion on the 9 May 2022 complia
shareholders of Co., Limited undertaking Company's financial statements for the prior 2022 to 8 nce

the Company year); May

(3) The Company has no significant external 2024

investment plan or significant cash expenditure

within the next 12 months (except for fund-

raising projects). Asignificant investment plan

or significant cash expenditure means that the

cumulative expenditure on the Company's

intended external investment, acquisition of

assets or purchase of equipment within the next

12 months reaches or exceeds 30% of the

Company's latest audited equity; and

(4) There are no other circumstances that the

Board of Directors considers inappropriate for

cash dividends.

Undertakings Hua Xue, Undertaking In compliance with the laws and regulations 27 Long In strict


made to Yingzhuo on reduction governing shareholding reductions by directors, Nove term complia
minority Xu, Qi of supervisors and senior management mber nce

shareholders of Cheng, shareholdin 2009

the Company Jianfang g

Gui, Jianguo

He, Yunguo

Liu,

Zhenxiong

Qi, Hua

Wang,

Yongfang

Mu,

Guoxiang

Liu, Xueqiao

Qian,

Shaolin

Yang, Xiewu

Jiang,

Guocheng

Mi,

Zhongzhu

Chen,

Mingzhong

Chen,

Jiantao

Yang, Jing

Wang,

Zhijian

Huang, Li

Tian, and Jia

Chen

Undertakings Undertaking 27

made to on reduction In compliance with the laws and regulations Nove 16 In strict
minority Li Tian of governing shareholding reductions by directors, mber Januar complia
shareholders of shareholdin supervisors and senior management 2009 y 2023 nce

the Company g

Undertakings Undertaking

made to on reduction In compliance with the laws and regulations 21 16 In strict
minority Jia Chen of governing shareholding reductions by directors, Augus Januar complia
shareholders of shareholdin supervisors and senior management t 2013 y 2023 nce

the Company g

Whether

undertakings Yes

performed on

time

Specific

reasons why

undertakings

were not N/A

performed on

time and next

steps

2. Description on the Company’s assets and items in meeting original profit forecast and its
explanation as there is profit forecast for assets and items of the Company and the reporting
period is still within the profit forecast period

□Applicable  Not applicable


II. Appropriation of Funds of the Company by the Controlling Shareholder and Its Related
Parties for Non-Operating Purposes
□Applicable  Not applicable

There was no appropriation of funds of the Company by the controlling shareholder and its related parties for non-
operating purposes during the reporting period.

III. External Guarantees against the Rules and Regulations

□Applicable  Not applicable

There was no external guarantee provided by the Company which was against the rules and regulations during the
reporting period.

IV. Opinions of the Board Regarding the Latest "Modified Audit Report"

□Applicable  Not applicable

V. Opinions of the Board, the Supervisory Committee and Independent Directors (If Any)
Regarding the "Modified Audit Report" for the Reporting Period Issued by the Accountants
□Applicable  Not applicable

VI. Reason for Changes in Accounting Policies and Accounting Estimates as well as Correction
of Major Accounting Errors as Compared to the Financial Report for the Prior Year

Applicable □ Not applicable

For the changes in accounting policies and accounting estimates as compared to the financial report for the prior
year, please refer to Note III, 38 in Section X. “Financial Statements”.

VII. Reason for Changes in Scope of the Consolidated Financial Statements as Compared to
the Financial Report for the Prior Year

Applicable □ Not applicable

During the year, the scope of consolidation included 528 subsidiaries, increasing by 50 and reducing by 20 as
compared with the last year. For details, please refer to the Note "VI. Change in Consolidation Scope" and the Note
"VII. Interests in Other Entities" in Section X “Financial Statements".

VIII. Engagement or Dismissal of Accounting Firm

Current accounting firm engaged

Name of the domestic accounting firm Grant Thornton China (Special General Partnership)

Remuneration of the domestic accounting firm (RMB’0,000) 480

Continued term of service of the domestic accounting firm 4 years

Name of certified public accountants of the domestic Wenyuan Guan, Shuxia Zhang

accounting firm

Continued term of service of certified public accountants of the Wenyuan Guan: 4 years

domestic accounting firm Shuxia Zhang: 5 years

Name of the overseas accounting firm (if any) N/A


Remuneration of the overseas accounting firm (RMB’0,000) 0

(if any)

Continued term of service of the overseas accounting firm (if N/A

any)

Name of certified public accountants of the overseas N/A

accounting firm (if any)

Continued term of service of certified public accountants of the N/A

overseas accounting firm (if any)

Whether to appoint another accounting firm during the current period

□ Yes  No

Particulars on recruitment of accounting firms, financial consultants or sponsors for internal control and auditing
purposes
Applicable □ Not applicable

During the reporting period, the Company engaged Grant Thornton China (Special General Partnership) as the
internal control auditor and paid a total of RMB 1.2 million for the internal control audit.

IX. Delisting Upon Publication of Annual Report

□Applicable  Not applicable

X. Matters Related to Bankruptcy and Reorganisation

□Applicable  Not applicable

There was no matter related to bankruptcy and reorganisation during the reporting period.

XI. Material Litigation and Arbitration
□Applicable  Not applicable

During the reporting period, the Company was not involved in any material litigation and arbitration.

XII. Punishment and Rectification
□Applicable  Not applicable

There was no punishment and rectification of the Company during the reporting period.

XIII. Credibility of the Company, Its Controlling Shareholder and Actual Controller

□Applicable  Not applicable

XIV. Significant Related Party Transactions

1. Related party transactions associated with day-to-day operation

Applicable □ Not applicable

Amount Percen Amount Market

Types of Subject Pricing of tage of Wheth price

Related the matter of basis related as the transacti er Settlement of

Related party related the of the Price of party amoun ons excee of availabl Disclos

party relationsh party related related related party transactio t approve ding related e ure date Disclosure index

ip transaction party party transactions ns of d appro party similar

s transactio transacti (RMB’0, similar (RMB’0 ved transactions transacti

ns ons 000) transac ,000) cap on

tions

The price of

Foshan each

Haihang transaction Announcement on

Xingfa shall be Day-to-day Related

Agriculture determined by On normal Party Transactions in
and Animal Sales of both parties commercial 2022 (《关于 2022 年
Husbandry commoditi Sales of through terms or in 日常关联交易的公

Developme Associate es to the feed and Market negotiation 9,302.26 0.09% 10,500 No accordance N/A 12 April 告》) (Announcement
nt Co., Ltd. related other price based on the with 2022 No. 2022-008)

and its party products uniform relevant published on 12 April
branch market price agreements 2022 on the media

companies as quoted designated for

and externally by information disclosure
subsidiarie the seller at

s the time of

transaction.

The price of Announcement on

Purchase each Day-to-day Related

of raw Purchase transaction On normal Party Transactions in
Wujiaqu materials of raw shall be commercial 12 April 2022 (《关于 2022 年
Tycoon from or materials Market determined by terms or in 2022 日常关联交易的公

Plant Associate rendering or price both parties 17,000.94 0.18% 20,036 No accordance N/A and 21 告》) (Announcement
Protein of services rendering through with October No. 2022-008) and

Co., Ltd. to the of negotiation relevant 2022 Announcement on

related services based on the agreements Day-to-day Related

party uniform Party Transactions

market price (《关于日常关联交


as quoted 易的公告》)

externally by (Announcement No.
the seller at 2022-085) published
the time of on 12April 2022 and
transaction. 21 October 2022

respectively on the

media designated for
information disclosure

Announcement on

Day-to-day Related

The price of Party Transactions in
each 2022 (《关于 2022 年
transaction 日常关联交易的公

Purchase shall be 告》) (Announcement
of raw Purchase determined by On normal No. 2022-008) and

Alaer materials of raw both parties commercial 12 April Announcement on

Ruiliheng from or materials through terms or in 2022 Day-to-day Related

Biological Associate rendering or Market negotiation 16,106.38 0.17% 20,036 No accordance N/A and 21 Party Transactions

Protein of services rendering price based on the with October (《关于日常关联交
Co., Ltd. to the of uniform relevant 2022 易的公告》)

related services market price agreements

party as quoted (Announcement No.
externally by 2022-085) published
the seller at on 12April 2022 and
the time of 21 October 2022

transaction. respectively on the

media designated for
information disclosure

The price of Announcement on

each Day-to-day Related

transaction Party Transactions in
Vietnam shall be 2022 (《关于 2022 年
Haid determined by On normal 日常关联交易的公

Yingtaogu Sales of both parties commercial 12 April 告》) (Announcement
Farm Co., commoditi Sales of through terms or in 2022 No. 2022-008) and

Ltd. and its Associate es to the feed and Market negotiation 6,457.72 0.06% 7,800 No accordance N/A and 21 Announcement on

branch related other price based on the with October Day-to-day Related

companies party products uniform relevant 2022 Party Transactions

and market price agreements (《关于日常关联交
subsidiarie as quoted 易的公告》)

s externally by (Announcement No.
the seller at 2022-085) published
the time of on 12April 2022 and
transaction. 21 October 2022


respectively on the

media designated for
information disclosure

Announcement on

Day-to-day Related

The price of Party Transactions in
each 2022 (《关于 2022 年
transaction 日常关联交易的公

Vietnam shall be 告》) (Announcement
Haid determined by On normal No. 2022-008) and

Yingtaogu Purchase both parties commercial 12 April Announcement on

Farm Co., of raw Purchase through terms or in 2022 Day-to-day Related

Ltd. and its Associate materials of raw Market negotiation 278.82 0.0029 400 No accordance N/A and 21 Party Transactions

branch from the materials price based on the % with October (《关于日常关联交
companies related uniform relevant 2022 易的公告》)

and party market price agreements

subsidiarie as quoted (Announcement No.
s externally by 2022-085) published
the seller at on 12April 2022 and
the time of 21 October 2022

transaction. respectively on the

media designated for
information disclosure

Total -- -- 49,146.12 -- 58,772 -- -- -- -- --

Particulars on refund of bulk sale N/A

Actual performance of day-to-day transactions to be

conducted in the period for which the total N/A

transaction amount is estimated by categories

during the reporting period (if any)

Reasons for large differences between transaction N/A

prices and market reference prices (if applicable)


2. Related party transactions in connection with purchase or sale of assets or equity interest
□Applicable  Not applicable

There was no related party transaction of the Company in connection with purchase or sale of assets or equity
interest during the reporting period.

3. Related party transactions connected to joint external investment

Applicable □ Not applicable

Total Equity of Net profit
Name of Principal Registered assets of the of the
Joint investor Relationship with the the operations capital of the investee investee
Company investee of the the investee (RMB’0,0 (RMB’0,0
investee investee (RMB’0,0 00) 00)

00)

Guangdong Guangdong Hisenor Group

Hisenor Co., Ltd. is a majority-

Group Co., owned subsidiary of the

Ltd., Company. Guangzhou

Guangzhou Haishengyuan Industrial

Haishengyua Investment Partnership Principally

n Industrial (Limited Partnership), and Guangdon investing in

Investment Guangzhou Haizhiyuan g factory- and

Partnership Industrial Investment Haizhihui facility- RMB 100

(Limited Partnership (Limited Aquacultu based million 57,573.53 9,980.73 2,135.00
Partnership), Partnership) both have a re aquaculture

and general partner that is a Technolog business

Guangzhou limited company controlled y Co., Ltd. with own

Haizhiyuan by directors and senior funds

Industrial management of the

Investment Company, with the

Partnership directors and senior

(Limited management holding

Partnership) limited partnership shares.

Progress (if any) on significant projects N/A

under construction of the investee

4. Related creditors’ rights and debts transactions

□Applicable  Not applicable

There were no related creditors’ rights and debts of the Company during the reporting period.

5. Transactions with related finance companies

□Applicable  Not applicable

The Company did not make deposits in, receive loans or credit from and was not involved in any other finance

business with any related finance company or any of its related parties.

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

□Applicable  Not applicable

No related parties made deposits in, received loans or credit from or was involved in any other finance business

with any finance company controlled by the Company.

7. Other significant related party transactions

□Applicable  Not applicable

There were no other significant related party transactions of the Company during the reporting period.

XV. Material Contracts and Implementation
1. Custody, contracting and leasing
(1) Custody
□Applicable  Not applicable

There was no custody of the Company during the reporting period.

(2) Contracting
□Applicable  Not applicable

There was no contracting of the Company during the reporting period.

(3) Leasing
□Applicable  Not applicable

There was no leasing of the Company during the reporting period.

2. Significant guarantees
Applicable □ Not applicable
Unit: RMB’0,000

External guarantees of the Company and its subsidiaries (excluding guarantees to subsidiaries)

Date of the Guaran
related Amount Guaran Colla tee

announcemen of Guarante tee Type of teral Counter-guarantee (if Fulfille to

Name of obligee t guarante e date provide guarant (if any) Term d related
disclosing the e d ee any) or not parties
guarantee or not
amount

The spouse of the

borrower, any of the

adult children of the

borrower and his/her

spouse, and/or any third

Customers (such as party provide counter-

farmers and dealers) guarantees; and the

of seven controlled Joint Company has the right

subsidiaries 28 June 2018 2,000 15April 6 liability to withhold the relevant 3 No No

including Hunan 2020 guarant funds (including but years

Haid Bio-Feed Co., ee not limited to

Ltd. remaining payments for

goods and discounts) of

the customer for

repaying the principal

and interest of the

customer’s overdue

loan.

The spouse of the

borrower, any of the

adult children of the

borrower and his/her

spouse, and/or any third

party provide counter-

Customers (such as guarantees; and the

farmers and dealers) Joint Company has the right

of eleven controlled 16April 2019 1,500 9 March 15 liability to withhold the relevant 3 No No

subsidiaries 2020 guarant funds (including but years

including Guangxi ee not limited to

Haid Feed Co., Ltd. remaining payments for

goods and discounts) of

the customer for

repaying the principal

and interest of the

customer’s overdue

loan.

The spouse of the

borrower, any of the

adult children of the

borrower and his/her

spouse, and/or any third

party provide counter-

guarantees; and the

Customers (such as Company has the right

farmers and dealers) 17 March 38,450 14 May 54 to withhold the relevant 3 No No

of subsidiary 2020 2020 funds (including but years

not limited to

remaining payments for

goods and discounts) of

the customer for

repaying the principal

and interest of the

customer’s overdue

loan.

The spouse of the

borrower, any of the

Customers (such as Joint adult children of the

farmers and dealers) 19 January 91,400 30 March 30.17 liability borrower and his/her 1-3 No No

of subsidiary 2021 2021 guarant spouse, and/or any third years

ee party provide counter-

guarantees; and the

Company has the right


to withhold the relevant

funds (including but

not limited to

remaining payments for

goods and discounts) of

the customer for

repaying the principal

and interest of the

customer’s overdue

loan.

Joint The spouse of the

1 January 32,050. liability borrower, any of the 1 Yes No

2022 7 guarant adult children of the year

ee borrower and his/her

spouse, and/or any third

party provide counter-

guarantees; and the

Company has the right

Customers (such as 23,000 to withhold the relevant

farmers and dealers) 27 July 2021 Joint funds (including but

of subsidiary 5 January 4,225.7 liability not limited to 1 No No

2022 6 guarant remaining payments for year

ee goods and discounts) of

the customer for

repaying the principal

and interest of the

customer’s overdue

loan.

1,000

Joint The spouse of the Withi

9 May 48,465. liability borrower, any of the n 1 Yes No

2022 07 guarant adult children of the year

235,000 ee borrower and his/her

Joint spouse, and/or any third

9 May 76,081. liability party provide counter- 1-3 No No

2022 83 guarant guarantees; and the years

Customers (such as ee Company has the right

farmers and dealers) 12April 2022 to withhold the relevant

of subsidiary funds (including but

not limited to

Joint remaining payments for

2,000 9 May 1,437.0 liability goods and discounts) of 1 No No

2022 7 guarant the customer for year

ee repaying the principal

and interest of the

customer’s overdue

loan.

Total actual

Total external guarantees approved external guarantees

during the reporting period (A1) 237,000 during the 162,365.6
reporting period

(A2)

Total balance of

actual external

Total external guarantees approved at 394,350 guarantees at the 81,429.51
the end of the reporting period (A3) end of the

reporting period

(A4)

Guarantees between the Company and its subsidiaries

Date of the Guaran
related Amount Guaran Colla tee

announcemen of Guarante tee Type of teral Counter-guarantee (if Fulfille to

Name of obligee t guarante e date provide guarant (if any) Term d related
disclosing the e d ee any) or not parties
guarantee or not
amount

Joint

27 October 33,557 13 June 27,161. liability 7 No No

Haid 2017 2018 94 guarant years

International Group ee N/A

Limited 10 Joint

20April 2021 268,456 Septembe 278,58 liability 3 No No

r 2021 4 guarant years

ee

Haid Feed Co., 19 January 26 2,195.0 Joint Withi

Limited 2021 6,851 January 7 liability N/A n 1 Yes No

2022 guarant year


ee

Joint Withi

12April 2022 14,111 13 May 1,434.5 liability n 1 Yes No

2022 5 guarant year

ee

18 May 2022 -11,311

7 Joint Withi

19 January 8,973 February 1,203.0 liability n 1 Yes No

2021 2022 7 guarant year

ee

Joint Withi

20April 2021 2,055 3 March 1,850.7 liability Minority shareholders n 1 Yes No

2022 7 guarant provide counter- year

Shenglong Bio-Tech ee guarantees for the

(India) Private Joint Company in proportion Withi

Limited 22 June 799.2 liability to their shareholding n 1 Yes No

2022 guarant percentages. year

12April 2022 17,536 ee

Joint

29 July 487.94 liability 1 No No

2022 guarant year

ee

18 May 2022 -6,481

10 Joint Withi

19 January 6,166 January 3,345.8 liability n 1 Yes No

2021 2022 6 guarant year

ee N/A

Hai Duong Haid Joint Withi

Company Limited 12April 2022 16,166 11 May 1,988.1 liability n 1 Yes No

2022 2 guarant year

ee

18 May 2022 -9,666

China Haida Feed 12April 2022 97,400

Group (HK)

Limited 18 May 2022 -15,700

13 Joint Withi

19 January 10,277 January 8,311.2 liability n 1 Yes No

2021 2022 7 guarant year

ee N/A

Pt.HaidaAgriculture Joint Withi

Indonesia 12April 2022 10,277 6 June 4,003.1 liability n 1 Yes No

2022 9 guarant year

ee

18 May 2022 -925

28 Joint

29 June 2019 100,000 Novembe 49,166. liability 10 No No

r 2019 18 guarant years

ee

10 Joint

28 July 2020 55,000 Septembe 41,527. liability 10 No No

r 2020 19 guarant years

ee

24 Joint

19 January 180,000 Novembe 22,378. liability 10 No No

2021 r 2020 58 guarant years

ee

20 Joint Withi

19 January 131,146 January 16,631. liability n 1 Yes No

Guangzhou Yitun 2021 2022 01 guarant year

Pig Industry ee N/A

Investment Co., Ltd. Joint

and its subsidiaries 20April 2021 50,000 8 January 49,472. liability 10 No No

2022 13 guarant years

ee

9 Joint Withi

20April 2021 18,854 February 14,665. liability n 1 Yes No

2022 31 guarant year

ee

12 Joint Withi

12April 2022 200,000 August 19,611. liability n 1 Yes No

2022 98 guarant year

ee

Joint

2August 1,666.5 liability 1year No No

2022 8 guarant

ee


18 May 2022 -57,519

Shandong Haiding 12April 2022 10,000

Agriculture and

Animal Husbandry 18 May 2022 -10,000

Co., Ltd.

Guangdong Haid 12April 2022 59,010

International Trade

Co., Ltd. 18 May 2022 -4,520

Chaozhou Haid

Biotechnology Co., 12April 2022 25,000

Ltd.

Joint

12April 2022 20,000 29 June 10,216. liability 2-10 No

Qingyuan Haibei 2022 22 guarant years

Biotechnology Co., ee N/A

Ltd. Joint

18 May 2022 149 2 June 149 liability 1 No

2022 guarant year

ee

17 Joint

28 July 2020 350 August 373 liability N/A 2-3 No No

2020 guarant years

Qingyuan Hailong ee

Biotechnology Co., 12April 2022 350

Ltd. Joint

18 May 2022 173 2 June liability N/A 1 No No

2022 guarant year

ee

Sihui Haifeng Joint

Biological 12April 2022 50 25 July 50 liability N/A 1 No No

Agriculture Co., 2022 guarant year

Ltd. ee

Zigong Hailong Joint

Biotechnology Co., 12April 2022 100 8 June 64 liability N/A 1 Yes No

Ltd. 2022 guarant year

ee

Jiangxi Jiabo

Biological 18 May 2022 6,000

Engineering Co.,
Ltd.
Pt Haida

Biotechnology 18 May 2022 9,800

Indonesia

Minority shareholders

Wholly- and Joint provide counter-

majority-owned 12April 2022 300,000 9 May 88,104. liability guarantees for the 1 No No

subsidiaries 2022 41 guarant Company in proportion year

ee to their shareholding

percentages.

Total amount of

Total amount of guarantee provided guarantee provided

for subsidiaries approved during the 670,000 for subsidiaries 678,440.57
reporting period (B1) during the

reporting period

(B2)

Total balance of

Total amount of guarantee provided guarantee provided

for subsidiaries approved as at the end 1,541,685 for subsidiaries as 447,429.34
of the reporting period (B3) at the end of the

reporting period

(B4)

Guarantees between subsidiaries

Date of the Guaran
related Amount Guaran Colla tee

announcemen of Guarante tee Type of teral Counter-guarantee (if Fulfille to

Name of obligee t guarante e date provide guarant (if any) Term d related
disclosing the e d ee any) or not parties
guarantee or not
amount

26 Joint Minority shareholders Withi

Sheng 19 January 109,305 January 20,925. liability provide counter- n 1 Yes No

Long Bio-Tech 2021 2022 56 guarant guarantees for the year

International ee Company in proportion

Co.,Ltd 4 July 14,475. Joint to their shareholding Withi

12April 2022 110,884 2022 08 liability percentages. n 1 Yes No

guarant year


ee

Joint

7 July 11,503. liability 1 No No

2022 99 guarant year

ee

5 Joint

18 May 2022 15,435 Septembe 9,631.9 liability 1 No No

r 2022 3 guarant year

ee

Joint Withi

12April 2022 2,735 2 June 371.82 liability n 1 Yes No

2022 guarant year

Hai Duong Haid ee N/A

Company Limited Joint Withi

18 May 2022 6,865 liability n 1 Yes No

guarant year

ee

Joint Withi

19 January 3,426 15April 2,705.4 liability N/A n 1 Yes No

2021 2022 4 guarant year

ee

12April 2022 8,680

Haid Feed Joint Withi

Co.,Limited 5 July 1,896.2 liability N/A n 1 Yes No

2022 3 guarant year

18 May 2022 5,120 ee

23 Joint

Decembe 653.7 liability N/A 1year No No

r 2022 guarant

ee

Minority shareholders

13 Joint provide counter- Withi

19 January 9,999 January 1,884.9 liability guarantees for the n 1 Yes No

2021 2022 1 guarant Company in proportion year

ee to their shareholding

percentages.

Shenglong Bio-Tech 12April 2022 14,120

(India) Private Joint

Limited 1 July 1,413.6 liability Minority shareholders Withi

2022 8 guarant provide counter- n 1 Yes No

ee guarantees for the year

18 May 2022 7,300 Joint Company in proportion

8 July 4,375.6 liability to their shareholding 1year No No

2022 8 guarant percentages.

ee

27 Joint Withi

19 January 3,426 January 1,377.4 liability n 1 Yes No

2021 2022 8 guarant year

ee

Joint Withi

12April 2022 17,585 7 July 1,154.8 liability n 1 Yes No

2022 1 guarant year

Pt.HaidaAgriculture ee N/A

Indonesia Joint Withi

1August 9,006.5 liability n 1 Yes No

2022 7 guarant year

18 May 2022 16,400 ee

16 Joint

Septembe 7,172.5 liability 1 No No

r 2022 4 guarant year

ee

9 Joint

12April 2022 6,396 Septembe 3,400.2 liability N/A 1 No No

Vinh Long Hai Dai r 2022 9 guarant year

Co.,Ltd ee

18 May 2022 7,380

China Haida Feed 12April 2022 13,000

Group (HK)

Limited 18 May 2022 6,600

Joint Withi

12April 2022 6,600 9 May 478.85 liability Minority shareholders n 1 Yes No

Thang Long (Vinh 2022 guarant provide counter- year

Long) Biotech ee guarantees for the

Co.,Ltd Joint Company in proportion

18 May 2022 24,400 7 July 9,374.3 liability to their shareholding 1 No No

2022 1 guarant percentages. year

ee


22 Joint

Binh Dinh 18 May 2022 10,500 Decembe 448.82 liability N/A 1 No No

Hai Long Co.,Ltd r 2022 guarant year

ee

Jiangxi Jiabo

Biological 18 May 2022 6,000

Engineering Co.,
Ltd.

Nantong Haid Joint

Biotechnology Co., 12April 2022 1,800 12April 1,800 liability N/A 3 No No

Ltd. 2022 guarant years

ee

Wholly- and

majority-owned 18 May 2022 60,000

subsidiaries

Total amount of

Total amount of guarantee between guarantee between

subsidiaries approved during the 347,800 subsidiaries during 104,051.69
reporting period (C1) the reporting

period (C2)

Total balance of

Total amount of guarantee between guarantee between

subsidiaries approved as at the end of 473,956 subsidiaries as at 47,152.21
the reporting period (C3) the end of the

reporting period

(C4)

Total amount of guarantee provided (i.e. sum of the above three guarantee amounts)

Total amount of

Total amount of guarantee approved guarantee

during the reporting period 1,254,800 approved during 944,857.86
(A1+B1+C1) the reporting

period

(A1+B1+C1)

Total amount of

Total amount of guarantee approved guarantee

as at the end of the reporting period 2,409,991 approved as at the 576,011.06
(A3+B3+C3) end of the

reporting period

(A3+B3+C3)

Total amount of guarantee provided (i.e.A4+B4+C4) as % of 32.31%
the equity of the Company

Of which:

Balance of guarantee provided for shareholders, beneficial 0
controllers and its related parties (D)

Balance of guarantee directly or indirectly provided for obligors 52,416.21
with gearing ratio over 70% (E)

Total amount of guarantee provided in excess of 50% of the 0
equity (F)

Total amount of the three kinds of guarantees above (D+E+F) 52,416.21

Explanations on liability to guarantee occurred during the During the reporting period, the Company paid a total of RMB 16.0655 million for

reporting period or possible joint liability for satisfaction for overdue loans with its guarantee, of which RMB 107 thousand was collected while it is
undue guarantee contracts (if any) trying to collect the rest.

Explanations on provision of guarantee in violation of N/A

established procedures

Notes: 1. The “guarantee provided” in the table above refers to the cumulative guarantee amount on a rolling basis.
2.Theguaranteeamountsprovidedbysubsidiariesforexternalpartiesarecalculatedaccordingtotheequity-holding
percentages of the Company in those subsidiaries.

3. The foreign-currency guarantees in the table above are converted at the middle rate of exchange at the end of the
reporting period.


3. Entrusted cash and asset management

(1) Entrusted wealth management
 Applicable □ Not applicable

Entrusted wealth management during the reporting period

Unit: RMB’0,000

Impairment
Fund source for Amount of Overdue allowances for
Type entrusted wealth entrusted wealth Undue balance outstanding the overdue
management management amount outstanding
amount

Wealth

management Own funds 150,000 26,000 0 0
products of

banks

Total 150,000 26,000 0 0

Particulars of high risk wealth management products with individual significant amount or low security or poor
liquidity
□Applicable  Not applicable

Unable to recover the principal of entrusted wealth management or other circumstances that may result in
impairment
□Applicable  Not applicable
(2) Entrusted loans
 Applicable □ Not applicable

Overview of entrusted loans during the reporting period

Unit: RMB’0,000

Total entrusted loans Source Undue balance Overdue outstanding
amount

2,250 Own funds 1,400 0

Particulars of high risk wealth entrusted loans with individual significant amount or low security or poor liquidity
□Applicable  Not applicable

Unable to recover the principal of entrusted loans or other circumstances that may result in impairment

□Applicable  Not applicable
4. Other material contracts
□Applicable  Not applicable

The Company did not have any other material contract during the reporting period.

XVI. Other Matters of Significance
□Applicable  Not applicable


The Company did not have any other matters of significance to be explained during the reporting period.

XVII. Matters of Significance of Subsidiaries of the Company

□Applicable  Not applicable


Section VII. Share Changes and Shareholder Information

I Share Changes
1. Share Changes
Unit: share

Before Increase/decrease in the reporting period (+/-) After

Shares

as Shares as

dividen dividend

Percen New d converted Subto Percentag
Shares tage issue convert from Other tal Shares e (%)
(%) ed from capital

retained reserves

earning

s

1. Restricted 2,812,247 0.17% 150 150 2,812,397 0.17%
shares
1.1 Shares held
by the state
1.2 Shares held
by state-owned
juridical persons
1.3 Shares held

by other domestic 2,812,247 0.17% 150 150 2,812,397 0.17%
investors

Of which:

shares held by
domestic juridical
persons

Shares held

by domestic 2,812,247 0.17% 150 150 2,812,397 0.17%
natural persons
1.4 Shares held
by foreign
investors

Of which:

shares held by
foreign juridical
persons

Shares held

by foreign natural
persons

2. Non-restricted 1,658,348,814 99.83 -150 -150 1,658,348,664 99.83%
shares %

2.1 RMB 1,658,348,814 99.83 -150 -150 1,658,348,664 99.83%
ordinary shares %

2.2
Domestically
listed foreign

shares
2.3 Overseas
listed foreign
shares
2.4 Other

3. Total shares 1,661,161,061 100.00 0 0 1,661,161,061 100.00%
%

Reasons for share changes
 Applicable □ Not applicable

Based on the shareholdings of the Company’s directors, supervisors and senior management in the Company at the
end of last year, their tradable shares were recalculated at the beginning of the current year, resulting in changes in
their shares in lockup.
Approval of share changes
□Applicable  Not applicable
Transfer of share ownership
□Applicable  Not applicable

Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributable to
the ordinary shareholders of the parent companyand other financial indicators of the prior year and the prior period,
respectively
□Applicable  Not applicable

Other information that the Company considers necessary or is required by the securities regulator to be disclosed
□Applicable  Not applicable
2. Change in Restricted Shares
 Applicable □ Not applicable

Unit: share

Opening Increased in Unlocked in Closing Reason for Date of

Shareholder restricted Reporting Reporting restricted lockup unlocking
shares Period Period shares

Certain Shares of senior

directors and management

senior 2,812,247 150 0 2,812,397 that were in N/A

management of lockup

the Company

Total 2,812,247 150 0 2,812,397 -- --

II. Issuance and Listing of Securities

1. Securities (Exclusive of Preferred Shares) issued in the reporting period

□Applicable  Not applicable


2. Change in Total Shares, Shareholder Structure and Asset and Liability Structures

□Applicable  Not applicable
3. Existing Staff-Held Shares
□Applicable  Not applicable
III. Shareholders and Actual Controller

1. Shareholders and Their Shareholdings at the Period-End

Unit: share

Ordinary

sharehold Preferred Preferred shareholders

ers at the shareholders with resumed voting

Ordinary month- with resumed rights at the month-end

shareholders at 17,975 end prior 23,741 voting rights 0 prior to the disclosure of 0
the period-end to the at the period- this Report (if any) (see

disclosur end (if any) note 8)

e of this (see note 8)

Report

5% or greater shareholders or top 10 shareholders

Sharehol Pledged, marked or
Nature ding Change frozen shares

Name of of percentag Shares during Restricted Non-restricted

shareholder sharehol e at Reporting shares shares Status Shares
der period- Period

end (%)

Domesti

Guangzhou c non-

Haihao state- 54.82% 910,589,359 12,961,800 0 910,589,359 Pledge 42,383,000
Investment Co., owned d

Ltd. juridical

person

Hong Kong Foreign

Securities juridical 4.99% 82,901,154 13,144,610 0 82,901,154

Clearing person

Company Ltd.

Industrial and

Commercial

Bank of China

－Invesco Great

Wall Newly Other 2.59% 42,999,933 - 0 42,999,933

Growth Mixed

Securities

Investment

Fund

Norges Bank – Foreign

Proprietary juridical 1.23% 20,454,705 2,458,024 0 20,454,705

Fund person

Bank of China

－Invesco Great

Wall Dingyi

Mixed Other 0.96% 15,999,899 - 0 15,999,899

Securities

Investment

Fund (LOF)

National Social

Security Fund Other 0.69% 11,520,298 2,991,210 0 11,520,298

Portfolio 104


Abu Dhabi Foreign

Investment juridical 0.67% 11,063,069 2,581,855 0 11,063,069

Authority person

Rosefinch Fund
－Shaanxi Coal
Industry
Company
Limited－

Shaanxi Coal Other 0.58% 9,643,065 1,355,432 0 9,643,065

Rosefinch New
Economy Single
Asset
Management
Plan
Tianan Life

Insurance Co., Other 0.49% 8,060,619 1,546,242 0 8,060,619

Ltd.－Universal
Product
National Social

Security Fund Other 0.46% 7,671,332 - 0 7,671,332

Portfolio 106
Strategic investor or general
juridical person becoming

top-10 shareholder due to N/A

placing of new shares (if
any) (see note 3)

Among the top 10 shareholders above, the first shareholder is the controlling shareholder of the

Related or acting-in-concert Company, which is neither a related party nor an acting-in-concert party to the other shareholders. It
parties among shareholders is unknown whether there is, among the other shareholders, any acting-in-concert party as defined in
above theAdministrative Measures On Acquisition Of Listed Companies (《上市公司收购管理办法》)
or any related party.

Explain if any of the
shareholders above was
involved in entrusting/being N/A
entrusted with voting rights
or waiving voting rights

Special securities account At the end of the reporting period, the balance of the special securities account for repurchased

for repurchased shares shares of Guangdong Haid Group Co., Limited was 10,272,100 shares, which was not among the top
among the top 10 10 shareholders.

shareholders (if any)

Top 10 non-restricted shareholders

Name of shareholder Non-restricted shares held at period-end Type of shares

Type Shares

Guangzhou Haihao 910,589,359 RMB ordinary stock 910,589,359
Investment Co., Ltd.

Hong Kong Securities 82,901,154 RMB ordinary stock 82,901,154
Clearing Company Ltd.
Industrial and Commercial
Bank of China－Invesco

Great Wall Newly Growth 42,999,933 RMB ordinary stock 42,999,933
Mixed Securities
Investment Fund

Norges Bank – Proprietary 20,454,705 RMB ordinary stock 20,454,705
Fund
Bank of China－Invesco

Great Wall Dingyi Mixed 15,999,899 RMB ordinary stock 15,999,899
Securities Investment Fund
(LOF)

National Social Security 11,520,298 RMB ordinary stock 11,520,298
Fund Portfolio 104

Abu Dhabi Investment 11,063,069 RMB ordinary stock 11,063,069
Authority

Rosefinch Fund－Shaanxi 9,643,065 RMB ordinary stock 9,643,065
Coal Industry Company


Limited－Shaanxi Coal

Rosefinch New Economy

SingleAsset Management

Plan

Tianan Life Insurance Co., 8,060,619 RMB ordinary stock 8,060,619
Ltd.－Universal Product

National Social Security 7,671,332 RMB ordinary stock 7,671,332
Fund Portfolio 106

Related or acting-in-concert

parties among top 10 non- Among the top 10 shareholders above, the first shareholder is the controlling shareholder of the

restricted ordinary Company, which is neither a related party nor an acting-in-concert party to the other shareholders. It
shareholders, as well as is unknown whether there is, among the other shareholders, any acting-in-concert party as defined in
between top 10 non- the Measures for Administration of Takeover of Listed Companies (《上市公司收购管理办法》) or
restricted ordinary any related party.

shareholders and top 10

ordinary shareholders

Top 10 ordinary During the reporting period, the Company’s controlling shareholder Guangzhou Haihao Investment
shareholders conducting Co., Ltd. took back 12,961,800 shares (not a shareholding increase as ownership of these shares had
securities margin trading (if not been transferred) in its refinancing business. At the end of the reporting period, the top 10

any) ordinary shareholders were not engaged in margin trading.

Indicate whether any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the
Company conducted any promissory repo during the reporting period

□ Yes  No

No such cases in the reporting period.

2. Controlling Shareholder

Nature of controlling shareholder: Controlled by a natural person

Type of controlling shareholder: Juridical person

Legal

Name of controlling representativ Date of Unified social credit Main business scope

shareholder e/person in establishment code

charge

Investment with self-owned capital;

wholesale of commodities (excluding

commodities that require a permit or

approval document to trade); retail sales

Guangzhou Haihao Hua Xue 27 September 91440113793877530G of commodities (excluding commodities

Investment Co., Ltd. 2006 that require a permit or approval

document to trade); import and export of
commodities (excluding commodities

restricted to specific parties); and import

and export of technologies

Shareholdings of the

controlling shareholder

in other controlled or

non-controlled listed N/A

companies at home or

abroad during the

Reporting Period

Change of the controlling shareholder during the reporting period

□Applicable  Not applicable

No such cases in the reporting period.

3. Actual Controller

Nature of actual controller: Domestic natural person

Type of actual controller: Natural person


Name of actual controller Relationship with actual Nationality Right of residence in other

controller countries or regions

Hua Xue Himself Chinese None

Main office titles Chairman of the Board, and President (General Manager)

Used-to-be-holding listed

companies at home and abroad N/A

in past 10 years

Change of the actual controller during the reporting period

□Applicable  Not applicable

No such cases in the reporting period.

Ownership and control relations between the actual controller and the Company

Hua Xue

39.75%

Guangzhou Haihao Investment Co., Ltd.

54.82%

Guangdong Haid Group Co., Limited

Indicate whether the actual controller controls the Company via trust or other ways of asset management

□Applicable  Not applicable

4. Indicate whether the cumulative shares of the controlling shareholder or the largest
shareholder and their acting-in-concert parties that are in pledge account for 80% or greater
of their shareholdings in the Company

□Applicable  Not applicable

5. Other 10% or Greater Juridical-Person Shareholders

□Applicable  Not applicable

6. Holdings of the Company’s Controlling Shareholder, Actual Controller, Reorganizer and
Other Commitment Makers under Restricted Sales Condition

□Applicable  Not applicable

IV. Share Repurchases during the Reporting Period

Implementation progress of any share repurchase

□Applicable  Not applicable

Implementation progress of any reduction of the repurchased shares on the open market

□Applicable  Not applicable

Section VIII. Preferred Shares
□Applicable  Not applicable

No preferred shares in the reporting period.

Section IX. Bonds
□Applicable  Not applicable

Section X. Financial Statements
IndependentAuditors Report

Audit Opinion Unmodified unqualified audit opinion

Audit Report Sign-off Date April 21st, 2023

Audit Institution Name Grant Thornton China (Special General Partnership)

Audit Report Number GTCNSZ (2023) NO. 440A013782

Name of Certified Public Accountant Wenyuan Guan, Shuxia Zhang

To the Shareholders of Guangdong Haid Group Co., Limited,

I. Opinion
WehaveauditedthefinancialstatementsofGuangdongHaidGroupCo.,Limited(the “Company”), whichcomprise
the consolidated balance sheet as at December 31, 2022, and the consolidated income statement, consolidated
statement of changes in shareholders’equity and consolidated statement of cash flows for the year then ended, and
the notes to the consolidated financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and
the Company’s financial position as at December 31, 2022, and the consolidated and the Company’s financial
performance and cash flows for the year then ended in accordance with Accounting Standards for Business
Enterprises.
II. Basis for Opinion

We conducted our audit in accordance with China Standards onAuditing. Our responsibilities under those standards
are further described in theAuditor’s Responsibilities for theAudit of the Financial Statement section of our report.
We are independent of the Company in accordance with the Code of Ethics for Chinese Certified PublicAccountant
(the “Ethics Code”) together with the ethical requirements that are relevant to our audit of the financial statements,
and we fulfilled our other ethical responsibilities in accordance with these requirements and the Ethics Code. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
III. Key audit matters

The key audit matters are those matters that, in our professional judgment, are of most significance in our audit of
the financial statements of the current period.These matters are addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
(I) Revenue Recognition

Please refer to Note III. 28 and Note V. 50 in the Notes to the Financial Statements for the disclosure of revenue
recognition.

1. Description

Haid Group is mainly engaged in feed production and sales. In 2022, the Company’s operating revenue was
RMB104,715.42 million. We identified revenue recognition as a key audit matter because operating revenue is one
of the Company’s key performance indicators, and there is an inherent risk that management may manipulate the
timing of revenue recognition to achieve specific goals or expectations.

2. How OurAuditAddressed the KeyAudit Matter

(1) We understood and evaluated the design effectiveness of internal controls related to revenue recognition. We
tested the operation effectiveness of key internal controls.

(2) We carried out a spot check on significant sales contracts to analyze whether the identification of performance
obligations, the allocation of transaction prices and the determination on when the transfer of control of the related
goods or services are in line with the business model of the Company and complied with the accounting standards
for business enterprises;

(3) We performed analytical procedures to access the reasonableness of changes in revenue and gross margin;
examined the monthly average sales price of the Company’s major products, and compared it with the data in the
prior period;

(4) We obtained the archival information of the new significant customers, searched their relevant information
through public channels and conducted assessment on whether they were related parties of the Company.

(5) To test the authenticity and completeness of revenue, we inspected the supporting documents related to revenue
recognition,includingextractingsalesstatements toreviewtherelatedsalescontracts, deliverynotes,billsoflading,
weighing notes, bank receipts, and monthly customer sales statements. We verified and analyzed the sales data in
the Company’s logistics system and financial system.

(6) To evaluate the accuracy and completeness of revenue, we performed confirmation procedures on revenue.

(7) We performed revenue cut-off testing as of the balance sheet date in conjunction with inventory observation
procedures to evaluate whether revenue was recognized in the appropriate period.

(II) Expected Credit Losses onAccounts Receivable

Please refer to Note III. 10 (6) and Note V. 4 in the Notes to the Financial Statements for the disclosure of expected
credit losses on accounts receivable.
1. Description

As of December 31, 2022, the balance of the Company’s accounts receivable was RMB1,952.01 million, including
provision of bad and doubtful debts of RMB264.84 million. The Company’s management assessed the expected
credit losses on accounts receivable individually and collectively based on the consideration of past events, current
situations and predictions of future economic conditions. Except for accounts receivable with provision of bad and
doubtful debts made individually, the management classified the accounts receivable into corresponding portfolios
based on similar credit risk characteristics. For accounts receivable classified into portfolios, the management
prepared comparison table of the accounts receivable aging and expected credit loss rate based on the historical
credit losses in conjunction with the current situation and predictions of future economic conditions, and calculated
the expected credit losses.

We identified expected credit losses on accounts receivable as a key audit matter because the Company involved
significant accounting estimate and judgment in making the expected credit losses on accounts receivable, and the
impact was significant.

2. How OurAuditAddressed the KeyAudit Matter

(1) We understood and evaluated the design effectiveness of internal controls related to expected credit losses on

accounts receivable. We tested the operation effectiveness of key internal controls.

(2) Foraccountsreceivablethatweremeasuredexpectedcreditlossesbasedonportfolioofcreditriskcharacteristics,
we evaluated the appropriateness of portfolio classification, reviewed the appropriateness of the historical losses
rate and prospective adjustment calculated based on the migration rate model, reviewed if the expected credit losses
were adequate.

(3) We selected samples based on the distribution of accounts receivable as at balance sheet date and the revenue in
the current year to perform confirmation procedure on accounts receivable. We compared the confirmation result
against the Company’s book records.

(4) For accounts receivables with significant balance as at balance sheet date or long aged, we selected samples to
examine customers’operation situation, historical payment records and subsequentpayments after the balance sheet
date.
(III) Inventory Provision

Please refer to Note III. 12 and Note V.7 in the Notes to the Financial Statements for disclosure of inventory
provision.
1. Description

As of December 31, 2022, the balance of the Company’s inventory was RMB12,641.57 million, which accounted
for 28.54% of the total assets, with an inventory provision of RMB16.49 million. The Company measured its
inventories at the lower of cost and net realizable value. Net realizable value is the estimated selling price less the
estimated costs to completion, estimated selling expenses and relevant tax expenses. The Company used the
conclusive evidence obtained as the basis, in conjunction with the consideration of the purpose of holding the
inventories and the impact of subsequent events after the balance sheet date to determine the net realizable value.
We identified inventory provision as a key audit matter because the inventory balance was significant as at
December 31, 2022 and it involved management’s significant judgment in determining the net realizable value.

2. How OurAuditAddressed the KeyAudit Matter

(1) We understood, evaluated and tested the design and operation effectiveness of internal controls related to
inventory.

(2) We performed inventory observation procedures to inspect the inventory quantity and condition.

(3) We obtained the inventory provision calculation schedule, tested for inventory provision and analyzed if the
inventory provision was adequate.

(4) We obtained the inventory list as at December 31, 2022. We performed analytical review on inventories with
long aging in conjunction with the inventory condition and evaluated the appropriateness of inventory provision.
(5) For inventory provision accrued in prior year, we inspected its movement in the current period.

(6) For products with available open market price, we selected samples to perform independent research and
compared the open market price with the Company’s estimated sales price. For products without available open
market price, we compared the Company’s estimated sales price against their latest actual sales price or actual sales
price in the subsequent period or actual sales price of similar products, to evaluate if the inventory provision was
adequate.
IV. Other Information

The Company’s management is responsible for the other information. The other information comprises all of the
information included in the Company’s 2022 Annual Report other than the financial statements and our auditor’s
report thereon.

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

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

If,basedontheworkwehaveperformed,weconcludethatthereisa material misstatementofthisotherinformation,
we are required to report that fact. We have nothing to report in this regard.

V. Responsibilities of Management and Those Charged with Governance for Financial
Statements

The Company’s management is responsible for the preparation of the financial statements that give a fair view in
accordance with the Accounting Standards for Business Enterprises, and for designing, implementing and
maintaining such internal control as the management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.

In preparing thefinancialstatements, the managementis responsible forassessing theCompany’s abilityto continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the management either intends to liquidate the Company or to cease operations, or have no
realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

VI. Auditor’s Responsibilities for Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
China Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:

(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting fromfraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.

(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.

(4) Concluded on the appropriateness of the management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast

significant doubt on the Company’s ability to continue as a going concern. If we concluded that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, further events or conditions may cause the
Company to cease to continue as a going concern.

(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.

(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Companyto expressanopiniononthefinancialstatements.We areresponsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicated with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identified during our audit.

We also provided those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicated with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that are of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequencesof doing so would reasonablybe expected to outweigh the public interest benefits
of such communication.


Consolidated and Company Balance Sheet

As at December 31, 2022

Prepared by: Guangdong Haid Group Co., Limited

Expressed in RMB

Item As at 31/12/2022 As at 1/1/2022

Consolidated Company Consolidated Company

Current assets:

Cash at bank and on

2,260,586,666.69 940,680,982.06 1,739,655,125.14 608,829,404.62

hand
Held-for-trading

699,942,009.75 140,046,696.58 2,507,784.13 -

financial assets

Notes receivable 6,901,604.04 - 9,902,395.11 -

Accounts receivable 1,952,007,881.05 11,689.37 1,293,328,829.38 17,219.37

Accounts receivable

- - - -

financing

Prepayments 1,787,282,249.33 579,408.35 2,550,853,738.02 1,177,163.76

Other receivables 1,322,999,051.80 13,125,884,408.71 780,025,770.40 13,207,220,849.29

Including: Interest

- - - -

receivables

Dividend

- - 900,009.00 900,009.00

receivables

Inventories 12,625,081,651.36 73,105,356.19 8,970,187,858.27 52,078,490.09

Contract assets - - - -

Assets held-for-sale - - - -

Non-current assets due

14,925,889.24 - 9,645,605.89 -

within one year

Other current assets 547,868,773.12 17,978,079.59 794,339,839.32 15,832,844.29

Total current

21,217,595,776.38 14,298,286,620.85 16,150,446,945.66 13,885,155,971.42

assets
Non-current assets:

Debt investments 1,137.46 - 14,501,072.58 -

Loans and advances to 1,866,871.63 - 4,397,461.24 -

customers

Other debt

- - - -

investments

Long-term receivables 122,919,270.52 4,057,623.02 86,932,591.35 2,494,068.21

Long-term equity

315,182,888.17 9,503,410,059.09 301,076,512.33 6,331,184,148.05

investments
Investments in other

- - - -

equity instruments
Other non-current

266,944,754.12 234,323,404.12 286,569,300.55 255,147,950.55

financial assets

Investment properties 26,856,587.98 16,451,045.11 26,941,013.33 18,516,515.82

Fixed assets 14,933,452,189.00 349,536,896.34 11,271,964,642.07 270,269,433.52

Construction in

1,377,352,318.21 10,974,762.07 1,531,493,842.31 21,971,207.85

progress
Productive biological

508,797,577.91 - 508,486,715.64 -

assets

Right-of-use assets 2,371,772,104.05 78,994,932.58 2,331,346,912.43 75,059,956.05

Intangible assets 1,619,499,215.41 108,467,858.26 1,490,419,035.61 112,961,029.65

Development costs 18,906,101.80 11,249,408.77 5,953,762.00 -

Goodwill 334,221,712.90 - 364,614,702.18 -

Long-term deferred

183,399,413.62 56,545,699.61 134,993,772.59 31,863,128.22

expenses

Deferred tax assets 745,943,292.33 166,584,689.10 734,134,076.01 242,767,571.78

Other non-current

193,070,520.82 2,305,492.36 450,825,044.08 26,973,605.46

assets

Total non-current

23,020,185,955.93 10,542,901,870.43 19,544,650,456.30 7,389,208,615.16

assets

Total assets 44,237,781,732.31 24,841,188,491.28 35,695,097,401.96 21,274,364,586.58

Current liabilities:

Short-term 2,910,809,252.56 1,980,915,497.76 3,782,336,144.35 2,569,087,753.67
loans

Held-for-trading 46,533,780.00 - 44,174,431.17 38,923,761.17
financial liabilities

Notes payable 3,502,208,518.33 3,483,994,854.13 407,090,978.58 696,404,396.50

Accounts 5,341,179,436.25 82,730,889.60 4,051,704,338.04 41,622,240.49
payable


Advances from 3,922,795.42 - 69,917.84 -
customers

Contract 1,720,519,173.21 2,502.68 1,908,259,980.27 -
liabilities

Employee 1,409,612,399.69 237,317,153.86 1,212,811,083.04 189,613,686.92
benefits payable

Taxes payable 210,828,446.34 1,727,986.15 241,421,008.19 480,338.96

Other payables 468,736,318.76 5,550,345,198.70 427,912,490.76 6,922,399,128.52

Including: - - - -
Interest payables

Dividend payables 3,279,944.00 - 21,827,574.34 -

Liabilities held- - - - -
for-sale

Non-current

liabilities due within 1,258,497,814.94 408,932,927.51 563,923,844.74 216,252,005.11
one year

Other current 559,698,472.24 44,795,850.36 398,722,254.96 21,269,289.31
liabilities

Total 17,432,546,407.74 11,790,762,860.75 13,038,426,471.94 10,696,052,600.65
current liabilities
Non-current
liabilities:

Long-term loans 5,066,407,199.42 1,686,643,333.29 4,411,107,883.25 565,000,000.00

Debentures - - - -
payable

Lease liability 1,610,426,421.30 53,395,046.47 1,578,746,388.19 51,426,577.63

Long-term 53,910,873.61 - 53,886,898.67 -
payables

Long-term

employee benefits 192,958,628.79 25,570,358.38 168,352,908.90 19,633,044.09
payable

Provisions - - - -

Deferred 299,528,716.40 13,692,868.54 286,411,601.04 10,174,804.63
income

Deferred tax 231,742,064.98 48,638,602.94 184,588,950.76 14,158,114.77
liabilities

Other non- 145,885.76 - - -
current liabilities

Total non- 7,455,119,790.26 1,827,940,209.62 6,683,094,630.81 660,392,541.12
current liabilities

Total 24,887,666,198.00 13,618,703,070.37 19,721,521,102.75 11,356,445,141.77
liabilities

Share capital 1,661,161,061.00 1,661,161,061.00 1,661,161,061.00 1,661,161,061.00

Other equity - - - -
instruments

Capital reserve 5,300,061,077.97 5,514,740,565.56 5,127,738,338.63 5,307,476,327.94

Less: Treasury 792,321,152.16 792,321,152.16 792,321,152.16 792,321,152.16
stock


Other

comprehensive 300,049,768.45 - -144,698,175.60 -

income

Specific reserve - - - -

Surplus reserve 830,580,530.50 830,580,530.50 746,430,806.85 746,430,806.85

General risk 4,834,904.00 - 9,005,028.55 -

provision

Retained 10,520,540,626.11 4,008,324,416.01 7,894,011,164.82 2,995,172,401.18

earnings

Total equity

attributable to 17,824,906,815.87 11,222,485,420.91 14,501,327,072.09 9,917,919,444.81

shareholders of the
parent company

Non-controlling 1,525,208,718.44 - 1,472,249,227.12 -

interests

Total shareholders' 19,350,115,534.31 11,222,485,420.91 15,973,576,299.21 9,917,919,444.81

equity

Total liabilities and

shareholders' 44,237,781,732.31 24,841,188,491.28 35,695,097,401.96 21,274,364,586.58

equity

Legalrepresentative:HuaXue Personinchargeofaccountingfunction:ShaolinYang Person
in charge of accounting department: Shaolin Yang

Consolidated and Company Income Statement

For the year ended December 31, 2022

Prepared by: Guangdong Haid Group Co., Limited

Expressed in RMB

Item 2022 2021

Consolidated Company Consolidated Company

I. Operating income 104,715,417,485.92 2,753,351,923.94 86,091,961,539.13 2,039,969,398.54

Less: Operating costs 95,003,580,100.23 1,294,200,413.90 78,792,870,336.77 892,832,929.79

Taxes and

123,268,230.68 3,189,607.60 103,114,300.28 2,863,641.90
surcharges

Selling and

1,980,987,068.23 - 1,808,249,264.31 -
distribution expenses

General and

administrative 2,583,815,226.76 575,656,719.91 2,228,521,838.59 530,685,944.80
expenses

Research and

711,235,490.13 255,946,726.08 605,020,192.04 188,572,442.20
development expenses


Financial

596,764,082.61 146,949,767.09 402,888,653.32 131,344,861.78
expenses

Including:

493,321,918.85 305,062,363.63 319,824,182.96 221,337,729.86
Interest expenses

47,519,969.08 169,978,618.36 29,932,608.81 114,907,837.95
Interest income

Add: Other income 143,078,404.03 12,420,501.60 90,871,598.32 11,384,679.18

Investment

267,121,175.54 999,748,728.07 384,851,154.17 833,556,750.22
income ("-" for losses)

Including:

Income from

investment in 47,855,406.41 1,276,430.90 -1,557,102.23 219,125.44
associates and joint
ventures

Income from

derecognition of

-1,262,095.66 - -1,432,052.45 -
financial assets

measured at amortized
cost ("-" for losses)

Net exposure

hedge income ("-" for - - - -
losses)

Gains from

- -
changesinfairvalue("- -25,949,112.55 47,106,002.17

18,020,717.76 2,669,641.98
" for losses)

Credit losses -

-151,825,135.93 -87,397,171.55

("-" for losses) 602,942.23 1,584,131.30

Impairment -

-51,868,678.48 -72,194,585.99 -
losses ("-" for losses) 633,989.93

Gains from

assets disposal ("-" for 6,722,883.81 131,366.61 647,470.97 943.99
losses)
II. Operating profit

3,903,046,823.70 1,470,451,635.72 2,515,181,421.91 1,137,526,440.78
("-" for losses)

Add: Non-operating 43,855,867.05 338,059.83 42,373,960.51 713,166.80

income
Less: Non-operating

124,178,162.07 28,775,531.93 48,501,004.55 4,541,364.44
expenses
III. Profit before

income tax ("-" for 3,822,724,528.68 1,442,014,163.62 2,509,054,377.87 1,133,698,243.14
losses)

Less: Income tax

658,278,689.76 97,079,082.19 657,772,217.77 56,019,178.66
expenses
IV. Net profit for the

3,164,445,838.92 1,344,935,081.43 1,851,282,160.10 1,077,679,064.48
year ("-" for losses)

(I) Classification
according to operation
continuity

Including: Net

profit from continuing

operations 3,164,445,838.92 1,344,935,081.43 1,851,282,160.10 1,077,679,064.48
("-" for

net loss)

Net

profit from

discontinued

- - - -
operations

("-" for

net loss)

(II) Attributable to:

Including:
Shareholders of the

parent company 2,954,142,403.34 1,344,935,081.43 1,636,237,735.85 1,077,679,064.48
("-" for

net loss)

Non-

controlling interests ("- 210,303,435.58 - -
215,044,424.25

" for net loss)

V. Other

comprehensive 435,781,170.46 - -37,081,918.64 -
income, net of tax


Other comprehensive
income (net of tax)

attributable to 444,747,944.05 - -38,211,827.53 -
shareholders of the

parent company

(I) Items that will not

be reclassified to profit - - - -
or loss

(II) Items that may be

reclassified to profit or 444,747,944.05 - -38,211,827.53 -
loss

1. Translation

differences arising

from translation of 444,747,944.05 - -38,211,827.53 -
foreign currency

financial statements

Other comprehensive
income (net of tax)

-8,966,773.59 - 1,129,908.89 -
attributable to non-

controlling interests

VI. Total

comprehensive 3,600,227,009.38 1,344,935,081.43 1,814,200,241.46 1,077,679,064.48
income for the year

Attributable to

shareholders of the 3,398,890,347.39 1,344,935,081.43 1,598,025,908.32 1,077,679,064.48
parent company

Attributable to non-

201,336,661.99 - 216,174,333.14 -
controlling interests

VII. Earnings per

share

1. Basic earnings per

1.79 0.98

share

2. Diluted earnings

1.79 0.98

per share

Legalrepresentative:HuaXue Personinchargeofaccountingfunction:ShaolinYang Person
in charge of accounting department: Shaolin Yang


Consolidated and Company Cash Flow Statement

For the year ended December 31, 2022

Prepared by: Guangdong Haid Group Co., Limited

Expressed in RMB

Item 2022 2021

Consolidated Company Consolidated Company

I. Cash flows from

operating activities

Cash received from sales of

goods and rendering of 64,099,598.56
105,515,366,873.92 1,611,001,116.36 87,156,308,826.61

services
Cash received from interest,

handling fee and 52,471,775.44 -
- 52,398,783.61

commission
Refund of taxes

46,778,969.55 2,018.26
27,784.87 28,552,067.44

Net decrease in loans and

273,826,418.39 - -
advances to customers -

Cash received from other

1,071,481,974.47 94,344,720,105.45
operating activities 129,205,998,725.34 1,527,404,114.38

Sub-total of cash inflows

94,408,821,722.27
from operating activities 106,959,926,011.77 130,817,027,626.57 88,764,663,792.04

Cash paid for goods and

91,539,931,901.86 585,113,729.02
services 532,862,166.40 77,942,873,205.55

Net increase in loans and

- -
advances to customers - 120,656,045.94

Cashpaid to andonbehalfof

5,028,206,028.20 503,103,566.29
employees 577,404,969.85 4,247,371,433.26

Taxes payments

951,951,549.79 6,300,961.42
4,884,596.67 842,752,484.72

Cash paid for other

2,621,942,281.01 89,949,434,656.19
operating activities 127,287,775,456.69 2,473,062,371.88

Sub-total of cash outflows 91,043,952,912.92


for operating activities 100,142,031,760.86 128,402,927,189.61 85,626,715,541.35

Net cash flows from

6,817,894,250.91 3,364,868,809.35
operating activities 2,414,100,436.96 3,137,948,250.69

II. Cash flows from

investing activities
Cash received from disposal

8,533,382,387.16 366,348,722.88
of investments 1,345,367,699.62 3,746,774,708.37

Cash received from

252,221,284.89 821,023,044.31
investment gains 1,002,634,156.19 362,775,819.58

Cash received from disposal
of fixed assets, intangible

21,674,298.08 324,334.20
assets and other long-term 120,297.04 15,390,950.11

assets
Net proceeds from disposal

of subsidiaries and other - - -
-

business units
Cash received from other

10,574,504.91 -
investing activities - 6,555,335.22

Sub-total of cash inflows

8,817,852,475.04 1,187,696,101.39
from investing activities 2,348,122,152.85 4,131,496,813.28

Payment for acquisition of
fixed assets, intangible

5,001,931,119.51 135,919,979.73
assets and other long-term 146,524,106.56 4,659,257,785.73

assets
Payment for acquisition of

9,199,535,576.31 2,157,226,931.75
investments 4,357,429,815.40 3,535,622,590.51

Net payments for acquisition

of subsidiaries and other 4,936,376.84 -
- 145,778,584.48

business units
Cash paid for other investing

56,933,976.70 -
activities 6,000.00 14,052,152.04

Sub-total of cash outflows

14,263,337,049.36 2,293,146,911.48
for investing activities 4,503,959,921.96 8,354,711,112.76

Net cash flows from - -

-5,445,484,574.32 -1,105,450,810.09
investing activities 2,155,837,769.11 4,223,214,299.48

III. Cash flows from

financing activities

Cash received from

69,933,021.63 -
investors - 418,241,406.00

Including: Proceeds from

non-controllingshareholders 69,933,021.63 -
- 418,241,406.00

of subsidiaries

Cash received from

13,925,695,034.50 11,211,276,748.16 17,029,202,863.80 11,530,201,972.64
borrowings
Cash received from other

17,015,584.74 2,869,914.56 17,566,515.07 5,996,166.86
financing activities
Sub-total of cash inflows

14,012,643,640.87 11,536,198,139.50
from financing activities 11,214,146,662.72 17,465,010,784.87

Repayments of borrowings

13,494,122,760.15 12,419,698,614.75
10,503,170,726.06 14,557,113,635.09

Payment for dividends,

profit distributions or 951,057,561.84 729,053,571.15
616,834,697.75 941,106,454.09

interests

Including: Dividends and

profits paid to non-

205,146,501.52 -
controlling shareholders of - 121,478,678.04

subsidiaries

Cash paid for other

497,507,448.43 720,664,327.03
financing activities 19,580,462.79 1,188,124,589.36

Sub-total of cash outflows

14,942,687,770.42 13,869,416,512.93
for financing activities 11,139,585,886.60 16,686,344,678.54

Net cash flows from

-930,044,129.55 -2,333,218,373.43
financing activities 74,560,776.12 778,666,106.33

IV. Effect of foreign

exchange rate changes on -1,326,267.77 4,046,174.03 -23,178,107.90 -13,655,242.35
cash and cash equivalents

V. Net increase in cash and -

441,039,279.27 336,869,618.00 -87,455,616.52
cash equivalents 329,778,050.36

Add: Cash and cash

equivalents at the beginning 1,681,109,971.07 603,811,349.57 2,010,888,021.43 691,266,966.09
of the period

VI. Cash and cash 2,122,149,250.34 940,680,967.57 1,681,109,971.07 603,811,349.57


equivalent at the end of the

period

Legalrepresentative:HuaXue Personinchargeofaccountingfunction:ShaolinYang Person
in charge of accounting department: Shaolin Yang


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

Consolidated Statement of Changes in Shareholders' Equity

For the year ended December 31, 2022

Prepared by: Guangdong Haid Group Co., Limited

Expressed in RMB

Item Year ended 31/12/2022

Attributable to shareholders' equity of the parent company Non- Total

controlli sharehol
Share Other equity Capital Less: Other Specific Surplus General Retained ng ders'

capital instruments reserve Treasury compreh reserve reserve risk earnings interests equity
Pref Perp Othe stock ensive provision

eren etual rs income

ce debt

shar

e

I. Balance at the -

end of last year 1,661,161 - - - 5,127,738 792,321,1 144,698,1 - 746,430,8 9,005,028 7,894,011 1,472,249 15,973,57
,061.00 ,338.63 52.16 75.60 06.85 .55 ,164.82 ,227.12 6,299.21

Add: Changes in

accounting - - - - - - - - - - - - -
policies

Correction

of prior period - - - - - - - - - - - - -
errors
Adjustments for
business

combinations - - - - - - - - - - - - -
involving
enterprises under
common control

Others

- - - - - - - - - - - - -

II. Balance at -

the beginning of 1,661,161 - - - 5,127,738 792,321,1 144,698,1 - 746,430,8 9,005,028 7,894,011 1,472,249 15,973,57
the year ,061.00 ,338.63 52.16 75.60 06.85 .55 ,164.82 ,227.12 6,299.21

140


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

III. Changes in -

equity during 172,322,7 444,747,9 84,149,72 4,170,124 2,626,529 52,959,49 3,376,539
the year ( "- " - - - - 39.34 - 44.05 - 3.65 .55 ,461.29 1.32 ,235.10
for decrease)
(I) Total

comprehensive - - - - - - 444,747,9 - - - 2,954,142 201,336,6 3,600,227
income 44.05 ,403.34 61.99 ,009.38

(II) Shareholders'

contributions and 181,968,1 38,221,70 220,189,8
decrease of - - - - 75.69 - - - - - - 0.51 76.20
capital
1. Contribution

by ordinary - - - - - - - - - - - 69,933,02 69,933,02
shareholders 1.63 1.63

2. Contribution
by holders of

other equity - - - - - - - - - - - - -
instruments
3. Share based

payment included 211,328,6 9,519,865 220,848,5
in shareholders' - - - - 60.37 - - - - - - .89 26.26
equity

4. Others - - -
- - - - 29,360,48 - - - - - - 41,231,18 70,591,67
4.68 7.01 1.69

(III) - - - -
Appropriation of - - - - - - - - 84,149,72 4,170,124 327,612,9 186,598,8 434,232,2
profits 3.65 .55 42.05 71.18 14.13

1. Appropriation -

for surplus - - - - - - - - 84,149,72 - 84,149,72 - -
reserves 3.65 3.65

2. Appropriation -

for general risk - - - - - - - - - 4,170,124 4,170,124 - -
provision .55 .55

3. Distributions to - - -
shareholders - - - - - - - - - - 247,633,3 186,598,8 434,232,2
42.95 71.18 14.13

4. Others

- - - - - - - - - - - - -

141


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

(IV) Transfer

within equity - - - - - - - - - - - - -

1. Transfer of

capital reserve to - - - - - - - - - - - - -
share capital
2. Transfer of

surplus reserve to - - - - - - - - - - - - -
share capital
3. Surplus

reserve for - - - - - - - - - - - - -
making up losses
4. Transfer the
changes in

defined benefit - - - - - - - - - - - - -
plan into retained
earnings
5. Transfer of
other

comprehensive - - - - - - - - - - - - -
income to
retained earning
6. Others

- - - - - - - - - - - - -

(V) Specific

reserve - - - - - - - - - - - - -

1. Appropriation

during the year - - - - - - - - - - - - -

2. Utilization

during the year - - - - - - - - - - - - -

(VI) Others - -
- - - - 9,645,436 - - - - - - - 9,645,436
.35 .35

IV. Balance at

the end of the 1,661,161 - - - 5,300,061 792,321,1 300,049,7 - 830,580,5 4,834,904 10,520,54 1,525,208 19,350,11
year ,061.00 ,077.97 52.16 68.45 30.50 .00 0,626.11 ,718.44 5,534.31

Item Year ended 31/12/2021

142


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

Attributable to shareholders' equity of the parent company Non- Total

controllin shareholde
Share Other equity Capital Less: Other Specif Surplus General Retained g interests rs' equity
capital instruments reserve Treasury compreh ic reserve risk earnings

Prefer Perpe Oth stock ensive reserv provisio

ence tual ers income e n

share debt

I. Balance -

at the end 1,661,210, - - - 5,041,921, 165,350,3 106,486,3 - 638,662,9 7,814,0 6,895,016, 985,903,09 14,958,691,
of last year 751.00 064.80 32.65 48.07 00.40 11.67 817.26 6.95 961.36

Add:

Changes in - - - - - - - - - - - - -
accounting
policies
Correction

of prior - - - - - - - - - - - - -
period
errors
Adjustment
s for
business
combinatio

ns - - - - - - - - - - - - -
involving
enterprises
under
common
control

Others - - - - - - - - - - - - -

II. Balance -

at the 1,661,210, - - - 5,041,921, 165,350,3 106,486,3 - 638,662,9 7,814,0 6,895,016, 985,903,09 14,958,691,
beginning 751.00 064.80 32.65 48.07 00.40 11.67 817.26 6.95 961.36
of the year

143


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

III.
Changes in

equity -

during the -49,690.00 - - - 85,817,273 626,970,8 38,211,82 - 107,767,9 1,191,0 998,994,34 486,346,13 1,014,884,3
year ( "- " .83 19.51 7.53 06.45 16.88 7.56 0.17 37.85
for
decrease)

(I) Total -

comprehens - - - - - - 38,211,82 - - - 1,636,237, 216,174,33 1,814,200,2
ive income 7.53 735.85 3.14 41.46

(II)
Shareholder

s' -
contributio -49,690.00 - - - 181,248,15 626,970,8 - - - - - 410,777,20 34,995,149.
ns and 0.10 19.51 9.68 73
decrease of
capital
1.

Contributio -

n by -49,690.00 - - - - 362,257.2 - - - - - 418,241,40 418,241,40
ordinary 312,567.20 0 6.00 6.00
shareholder
s
2.
Contributio

n by - - - - - - - - - - - - -
holders of
other equity
instruments
3. Share

based -

payment - - - - 262,778,76 80,958,25 - - - - - 11,540,405 355,277,42
included in 2.42 9.20 .47 7.09
shareholder
s' equity

4. Others - - -
- - - - 81,218,045 708,291,3 - - - - - 19,004,601 808,513,98
.12 35.91 .79 2.82

144


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(III) - - -
Appropriati - - - - - - - - 107,767,9 1,191,0 637,243,38 140,605,41 668,889,87
on of 06.45 16.88 8.29 2.65 7.61
profits
1.

Appropriati -

on for - - - - - - - - 107,767,9 - 107,767,90 - -
surplus 06.45 6.45

reserves
2.

Appropriati -

on for - - - - - - - - - 1,191,0 1,191,016. -

general risk 16.88 88

provision
3.

Distribution - - -
s to - - - - - - - - - - 528,284,46 140,605,41 668,889,87
shareholder 4.96 2.65 7.61
s

4. Others - - - - - - - - - - - - -

(IV)

Transfer - - - - - - - - - - - - -
within
equity
1. Transfer
of capital

reserve to - - - - - - - - - - - - -
share
capital
2. Transfer
of surplus

reserve to - - - - - - - - - - - - -
share
capital
3. Surplus

reserve for - - - - - - - - - - - - -
making up
losses

145


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

4. Transfer
the changes
in defined

benefit plan - - - - - - - - - - - - -
into
retained
earnings
5. Transfer
of other

comprehens - - - - - - - - - - - - -
ive income
to retained
earning

6. Others - - - - - - - - - - - - -

(V)

Specific - - - - - - - - - - - - -
reserve
1.

Appropriati - - - - - - - - - - - - -
on during
the year
2.

Utilization - - - - - - - - - - - - -
during the
year

(VI) Others - -
- - - - 95,430,876 - - - - - - - 95,430,876.
.27 27

IV. -

Balance at 1,661,161, - - - 5,127,738, 792,321,1 144,698,1 - 746,430,8 9,005,0 7,894,011, 1,472,249, 15,973,576,
the end of 061.00 338.63 52.16 75.60 06.85 28.55 164.82 227.12 299.21
the year

146


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

Company Statement of Changes in Shareholders' Equity

For the year ended December 31, 2022

Prepared by: Guangdong Haid Group Co., Limited

Expressed in RMB

Item Year ended 31/12/2022

Share Other equity Capital Less: Other Specific Surplus Retained Total

capital instruments reserve Treasury comprehen reserve reserve earnings shareholde
Prefe Perpe Other stock sive income rs' equity
rence tual s

share debt

I. Balance at the

end of last year 1,661,161,0 5,307,476,3 792,321,152 746,430,806 2,995,172,4 9,917,919,4
- - - - -

61.00 27.94 .16 .85 01.18 44.81

Add: Changes in

accounting policies - - - - - - - - - - -

Correction of

prior period errors - - - - - - - - - - -

Others

- - - - - - - - - - -

II. Balance at the

beginning of the 1,661,161,0 - - - 5,307,476,3 792,321,152 - - 746,430,806 2,995,172,4 9,917,919,4

147


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

year 61.00 27.94 .16 .85 01.18 44.81

III. Changes in
equity during the

- - - - 207,264,237 - - - 84,149,723. 1,013,152,0 1,304,565,9
year ( "- " for

.62 65 14.83 76.10
decrease)

(I) Total

comprehensive 1,344,935,0 1,344,935,0
- - - - - - - - -

income 81.43 81.43

(II) Shareholders'

contributions and 220,848,526 220,848,526
- - - - - - - - -

decrease of capital .28 .28

1. Contribution by

ordinary - - - - - - - - - - -
shareholders
2. Contribution by
holders of other

- - - - - - - - - - -
equity instruments
3. Share based

payment included in 220,848,526 220,848,526
- - - - - - - - -

shareholders' equity .28 .28

4. Others

- - - - - - - - - - -

(III) Appropriation - -
of profits - - - - - - - - 84,149,723. 331,783,066 247,633,342

148


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

65 .60 .95

1. Appropriation for -

surplus reserves 84,149,723. 84,149,723.

- - - - - - - - -
65 65

2. Appropriation for

general risk

- - - - - - - - - - -
provision

3. Distributions to - -
shareholders 247,633,342 247,633,342
- - - - - - - - -

.95 .95

4. Others

- - - - - - - - - - -

(IV) Transfer within

equity - - - - - - - - - - -

1.Transfer ofcapital
reserve to share

- - - - - - - - - - -
capital
2. Transfer of

surplus reserve to - - - - - - - - - - -
share capital
3. Surplus reserve

for making up losses - - - - - - - - - - -

149


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

4. Transfer the
changes in defined

benefit plan into - - - - - - - - - - -
retained earnings
5. Transfer of other
comprehensive

income to retained - - - - - - - - - - -
earning
6. Others

- - - - - - - - - - -

(V) Specific reserve

- - - - - - - - - - -

1. Appropriation

during the year - - - - - - - - - - -

2. Utilization during

the year - - - - - - - - - - -

(VI) Others - -
13,584,288. 13,584,288.
- - - - - - - - -

66 66

IV. Balance at the

end of the year 1,661,161,0 5,514,740,5 792,321,152 830,580,530 4,008,324,4 11,222,485,
- - - - -

61.00 65.56 .16 .50 16.01 420.91

150


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

Item Year ended 31/12/2021

Share Other equity instruments Capital Less: Other Specific Surplus Retained Total

capital Prefere Perpet Othe reserve Treasury comprehen reserve reserve earnings shareholders
nce ual rs stock sive income ' equity

share debt

I. Balance at

the end of last 1,661,210,75 - - - 5,136,265,88 165,350,33 - - 638,662,90 2,553,545,70 9,824,334,91
year 1.00 3.82 2.65 0.40 8.11 0.68

Add: Changes in

accounting - - - - - - - - - - -
policies

Correction

of prior period - - - - - - - - - - -
errors

Others - - - - - - - - - - -

II. Balance at

the beginning 1,661,210,75 - - - 5,136,265,88 165,350,33 - - 638,662,90 2,553,545,70 9,824,334,91
of the year 1.00 3.82 2.65 0.40 8.11 0.68

III. Changes in
equity during

the year ( "- " -49,690.00 - - - 171,210,444. 626,970,81 - - 107,767,90 441,626,693. 93,584,534.1
12 9.51 6.45 07 3
for decrease)

(I) Total

comprehensive - - - - - - - - - 1,077,679,06 1,077,679,06
4.48 4.48

151


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

income
(II)
Shareholders'

-
contributions -49,690.00 - - - 274,006,600. 626,970,81 - - - - 353,013,908.
and decrease of 69 9.51 82
capital
1. Contribution

by ordinary -49,690.00 - - - -312,567.20 - - - - - -
362,257.20

shareholders
2. Contribution
by holders of

other equity - - - - - - - - - - -
instruments
3. Share based
payment

-

included in - - - - 274,319,167. 80,958,259. - - - - 355,277,427.
shareholders' 89 20 09
equity

4. Others -
- - - - - 708,291,33 - - - - 708,291,335.
5.91 91

(III)

- -
Appropriation - - - - - - - - 107,767,90 636,052,371. 528,284,464.
of profits 6.45 41 96

1. Appropriation - - - - - - - - - -
107,767,90 107,767,906.

152


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

for surplus 6.45 45

reserves
2. Appropriation

for general risk - - - - - - - - - - -
provision

3. Distributions - -
to shareholders - - - - - - - - - 528,284,464. 528,284,464.
96 96

4. Others - - - - - - - - - - -

(IV) Transfer

within equity - - - - - - - - - - -

1. Transfer of

capital reserve - - - - - - - - - - -
to share capital
2. Transfer of

surplus reserve - - - - - - - - - - -
to share capital
3. Surplus
reserve for

making up - - - - - - - - - - -
losses
4. Transfer the
changes in

defined benefit - - - - - - - - - - -
plan into

153


Full text of 2021 Annual Report of Guangdong Haid Group Co., Limited

retained
earnings
5. Transfer of
other

comprehensive - - - - - - - - - - -
income to
retained earning

6. Others - - - - - - - - - - -

(V) Specific

reserve - - - - - - - - - - -

1. Appropriation

during the year - - - - - - - - - - -

2. Utilization

during the year - - - - - - - - - - -

(VI) Others - -
- - - - 102,796,156. - - - - - 102,796,156.
57 57

IV. Balance at

the end of the 1,661,161,06 - - - 5,307,476,32 792,321,15 - - 746,430,80 2,995,172,40 9,917,919,44
year 1.00 7.94 2.16 6.85 1.18 4.81

154


Notes to the Financial Statements

I. Company Profile
1. Company’s profile

Guangdong Haid Group Co., Limited (formerly known as “Guangdong Haid Industrial Co., Ltd.” or

“Guangdong Haid Group Limited”, and hereinafter referred to as the “Company”) is a share limited

company registered in Guangdong Province, which listed on the Shenzhen Stock Exchange in November
2009.

The Company and its subsidiaries (hereinafter referred to as the “Group”) operate in the feed industry, and
the main products include aquatic and livestock feed, high-quality aquatic animal seedlings, animal health
products, biological products, pig breeding and so on, covering all business chain such as research and
development, design, production, sales and service of various products.

The financial statements and notes have been approved by the 10th meeting of the sixth Board of Directors
of the Company on April 21, 2023.

2. Scope of consolidated financial statements

A totalof 528 subsidiaries were included in the scope of the consolidated financialstatements in current year.
50 entities were added into and 20 entities were removed from the consolidation scope for the current year
when compared to prior year. For further information, please refer to the disclosures in Note VI. Changes in
Consolidation Scope and Note VII. Interests in Other Entities.

II. Basis of preparation

The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises
and corresponding application guidance, interpretations and other related provisions issued by the Ministry
of Finance (collectively, "Accounting Standards for Business Enterprises"). In addition, the Group also
disclosed the relevant financial information in accordance with the Explanatory Announcement No. 15 on
Information Disclosure for Companies Offering Their Securities to the Public—General Requirements for
Financial Reporting (2014 version) issued by the China Securities Regulatory Commission.

The financial statements have been prepared on a going concern basis.

The Group adopts the accrual basis of accounting. The financial statements are prepared under the historical
cost except for certain financial instruments. Non-current assets held-for-sale are measured at the lower of
the amount of the fair value less estimated costs and the book value when it was recognized as held-for-sale.
If the assets were impaired, a provision for impairment shall be provided in accordance with the relevant
regulations.

III. Significant accounting policies and accounting estimates

The Group determines fixed assets appreciation and revenue recognition policy according to the
characteristics of its production and operation and relevant requirements in Accounting Standards for
Business Enterprises. For more information on the accounting policies, please refer to Note III. 16 and Note
III. 28.

1. Statement of compliance with theAccounting Standards for Business Enterprises

The financial statements have been prepared in accordance with the requirements of Accounting Standards
for Business Enterprises. These financial statements have truly and completely presented the consolidated
financial position and financial position of the Group as at December 31, 2022 and their operating results
and cash flows for the year ended December 31, 2022.

2. Accounting Period

The accounting period of the Group is from 1 January to 31 December.

3. Operating Cycle

The operating cycle of the Group is 12 months.

4. Functional currency

The Company and its domestic subsidiaries use Renminbi (“RMB”) as their functional currency. The
overseas subsidiaries of the Companydetermine their functionalcurrencyaccording to the primaryeconomic
environment where they operate. The financial statements of the Group have been prepared in RMB.

The joint ventures and associates of the Group determine their functional currency according to the primary
economic environment where they operate and the financial statements have been prepared in RMB.

5. Accounting treatments for business combinations involving enterprises under common control and business
combinations involving enterprises not under common control

(1) Business combinations involving enterprises under common control

For a business combination involving enterprises under common control, the assets acquired and liabilities
assumed are measured based on their carrying amounts in the consolidated financial statements of the
ultimate controlling party at the combination date. The difference between the carrying amount of the net
assetsacquiredandtheconsiderationpaidforthecombinationisadjustedagainstsharepremiuminthecapital
reserve, with any excess adjusted against retained earnings.

For a business combination involving entities under common control achieved in stages that involves
multiple exchange transactions

In the separate financial statements, the initial investment cost is the combining party’s share of the carrying
amount of the net assets of the combined party in the consolidated financial statements of the ultimate
controlling party at combination date. The difference between initial investment cost, and the total of
investment carrying amount prior to combination date and additional investment cost at the combination date
is adjusted to capital reserve. Any excess is adjusted to retained earnings.

In the consolidated financial statements, the assets acquired and liabilities assumed are measured based on
their carrying amounts in the consolidated financial statements of the ultimate controlling party at the
combination date; the difference between the sum of the carrying amount of the investment before
combination and the carrying amount of new consideration paid at the combination date, and the carrying
amount of the net asset acquired in the combination, is adjusted against capital reserve, with any excess
adjusted against retained earnings. The long-term equity investment of the combining party before acquiring
the control, the profit or loss, other comprehensive income and other changes in the owner’s equity
recognized from the later of the initial acquisition date of the equity and the date when the combining party
and the combined party under common ultimate control party to the combination date, shall be offset against
the opening retained earnings and profit or loss for the current period in the comparative statement.

(2) Business combinations involving enterprises not under common control

For business combinations involving entities not under common control, the consideration costs are the fair
values of the assets paid, the liabilities incurred or assumed and the equity instruments issued by the acquirer
in exchange for control over the acquiree on the acquisition date.At the acquisition date, the acquired assets,
liabilities and contingent liabilities of the acquiree are measured at their fair value.

Where the combination cost exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net
assets, the difference is recognized as goodwill, and subsequently measured based on its cost less
accumulated impairment provisions. Where the combination cost is less than the acquirer’s interest in the

fair value of the acquiree’s identifiable net assets, the difference is recognized in profit or loss for the current
period after reassessment.

For a business combination involving entities not under common control and achieved in stages that involves
multiple exchange transactions

In the individual financial statements, the initial investment cost is the sum of the book value of the equity
investment held bythe purchased partybefore the purchase date and the new investment cost on the purchase
date. The equity investment is recognized as other comprehensive income by using equity method, this part
of other comprehensive income is not adjusted in the purchase date, when disposal this investment, using the
same basis as the investee directly dispose of related assets or liabilities for accounting treatment; equity
recognized due to changes in the other equity of the investee (other than the changes in net profit and loss,
other comprehensive income and profit distribution), is transferred to the gain or loss in the disposal period
when this investment is disposed. If the equity investment held before the purchase date is measured at fair
value, the cumulative change in fair value that was originally included in other comprehensive income is
transferred to profit or loss in the current period when the cost method is used.

In the separate financial statements, the initial investment cost is the total of the carrying amount of
previously-held equity investment and the additional investment cost at the acquisition date. When the
previously-heldequityinvestmentwhichwasrecognizedundertheequitymethodbeforetheacquisitiondate,
any other comprehensive income previously recognized is not adjusted on acquisition date. When the
investment is disposed, the previous recognized amount in the other comprehensive income is recognized on
the same basis as would be required if the investee had directly disposed the related assets or liabilities. For
the changes of the investee’s other owners’ equity which have recognized in the owner’s equity except for
net profit or loss, other comprehensive income and profit distribution are transferred to profit or loss for the
current period when disposing the investment. When the previously-held equity investment which was
measured at fair value before the acquisition date, the accumulated changes in fair value included in other
comprehensive income is transferred to retained earnings upon commencement of the cost method.

In the consolidated financial statements, the cost of business combination is the total of the consideration
paid at the acquisition date and the fair value of equityinvestment of the acquiree heldprior to the acquisition
date. The cost of equity investment of the acquiree held prior to the acquisition date shall be re-measured at
the fair value at the acquisition date, the difference between the fair value and par value shall be recognized
as profit or loss for the current period. Other comprehensive income and changes of other owners’ equity
from the equity interest held in the acquiree prior to the acquisition date shall be transferred to profit or loss
for the current period, except for other comprehensive income arising from the movement of net liabilities
or assets in the investee’s re-measurement of defined benefit plan.

(3) Transaction costs for business combination

The overhead for the business combination, including the expenses for audit, legal services, valuation
advisory,andotheradministrativeexpenses,arerecordedinprofitorlossforthecurrentperiodwhenincurred.
The transaction costs of equity or debt securities issued as the considerations of business combination are
included in the initial recognition amount of the equity or debt securities.

6. Consolidated financial statements

(1) Scope of consolidated financial statements

The scope of consolidated financial statements is based on control. Control exists when the Company has
power over the investee; exposure, or rights to variable returns from its involvement with the investee and
has the ability to affect its returns through its power over the investee. A subsidiary is an entity that is
controlled by the Company (including enterprise, a portion of an investee as a deemed separate component,
and structured entity controlled by the enterprise).

(2) Basis of preparation of consolidated financial statements


The consolidated financial statements are prepared by the Company based on the financial statements of the
Company and its subsidiaries and other relevant information. When preparing consolidated financial
statements, the accounting policies and accounting periods of the subsidiaries should be consistentwith those
established by the Company, and all significant intra-company balances and transactions are eliminated.

Where a subsidiary or business was acquired during the reporting period, through a business combination
involving enterprises under common control, the financial statements of the subsidiary or business are
included in the consolidated financial statements as if the combination had occurred at the date that the
ultimate controlling party first obtained control.

Where a subsidiary or business was acquired during the reporting period, through a business combination
involving enterprises not under common control, the identifiable assets and liabilities of the acquired
subsidiaries or business are included in the scope of consolidation from the date that control commences.
The portion of a subsidiary’s equity that is not attributable to the parent is treated as non-controlling interests
and presented separately in the consolidated balance sheet within shareholders’ equity. The portion of net
profit or loss of subsidiaries for the period attributable to non-controlling interests is presented separately in
the consolidated income statement below the “net profit” line item. When the amount of loss for the current
period attributable to the non-controlling shareholders of a subsidiary exceeds the non-controlling
shareholders’ share of the opening owners’ equity of the subsidiary, the excess is still allocated against the
non-controlling interests.
(3) Purchase of subsidiaries’non-controlling interests

The difference between the cost of long-term equity investment newly acquired due to the purchase of non-
controlling interest and the share of net assets of the subsidiary continuously calculated from the purchase
date or merger date according to the newly increased shareholding ratio, and the difference between the
disposal price obtained as a result of partial disposal of the equity investment in the subsidiary without loss
of control and the share of net assets continuously calculated since the purchase date or the merger date
corresponding to the disposal of the long-term equity investment of the subsidiary, should be adjusted to the
capital reserve in the consolidated balance sheet, with any excess adjusted to retained earnings.

(4) Disposal of subsidiaries

When the Group loses control over a subsidiary because of disposing part of equity investment or other
reasons, the remaining part of the equity investment is re-measured at fair value at the date when the control
is lost. A gain or loss is recognised in the current period and is calculated by the aggregate of consideration
received in disposal and the fair value of remaining part of the equity investment deducting the share of net
assets in proportion to previous shareholding percentage in the former subsidiary since acquisition date and
the goodwill.

Other comprehensive income related to the former subsidiary is transferred to profit or loss when the control
is lost, except for the comprehensive income arising from the movement of net liabilities or assets in the
former subsidiary’s re-measurement of defined benefit plan.

(5) The treatment of disposing equity investment by stages until the control is lost

The Group considers the arrangements of multiple transactions by disposing equity investment by stages
until the control is lost as a single transaction when the terms, conditions and economic impact of each

transaction meet one or more of the following situations:

① The transactions are entered into at the same time or in contemplation of each other;

② The transactions are considered as a single transaction to achieve an overall commercial effect;

③ The occurrence of one transaction dependent on the occurrence of at least one other transaction;


④ A transaction is not economically justified when considered on its own, but it is economically justified
when considered together with other transactions.

In the separate financial statements, for multiple transactions by disposing equity investment by stages until
the control is lost that not qualified as a single transaction, the carrying amount of long-term equity
investments related to each transaction of disposal of equity is derecognized, the difference between the
consideration received and the carrying amount of disposed long-term equity investments is recognized as
investment income. For those arrangements qualified as a single transaction, the carrying amount of long-
term equity investments related to each transaction of disposal of equity is derecognized, the difference
between the consideration received and the carrying amount of disposed long-term equity investments is
recognized as other comprehensive income, and finally recognized in profit or loss for the current period on
the date when the control is lost.

In the consolidated financial statements, when the Group disposal of investments step by step through
multiple transactions until loss of control, the evaluation of remaining share and accounting for the disposal
of equity gain or loss can refer to the aforementioned "treatment of loss of control of the subsidiary". Before
the loss of control, the difference between the price of each disposal and the corresponding share of the net
asset book value of the subsidiary since the purchase date corresponding to the disposal of the investment
shall be treated as follows:

In the consolidated financial statements, please refer to the above “disposal of subsidiaries” for the
measurement of remaining equity and accounting treatment for profit or loss of disposing equity investment
by stages until the control is lost. The difference between each consideration received and the share of the
subsidiary’s net assets since acquisition date relevant to disposing investment until the control is lost:

① is recognized in other comprehensive income if the arrangements are regarded as a single transaction.
Other comprehensive income is transferred to profit or loss for the currentperiod until the control is lost.
② is recognized in capital reserve (share premium) as an equity transaction if the arrangements are not
regarded as a single transaction. Capital reserve is not transferred to profit or loss for the current period
when the control is lost.

7. Joint arrangement classification and accounting treatment for joint operation

Ajoint arrangement is an arrangement of which two or more parties have joint control. The Group classifies
joint arrangements into joint operations and joint ventures.

(1) Joint operations

Ajoint operation is a joint arrangement whereby the joint operators have rights to the assets, and obligations
for the liabilities, relating to the arrangement.

The Group recognizes the following items relating to its interest in a joint operation, and account for them in
accordance with relevant accounting standards:

A. Its solely-held assets, and its share of any assets held jointly;

B. Its solely-assumed liabilities, and its share of any liabilities assumed jointly;

C. Its revenue from the sale of its share of the output arising from the joint operation;

D. Its share of the revenue from the sale of the output by the joint operation; and

E. Its solely-incurred expenses, and its share of any expenses incurred jointly.

(2) Joint ventures

A joint venture is a joint arrangement whereby the joint venturers have rights to the net assets of the
arrangement.


The Group adopts equity method under long-term equity investment in accounting for its investment in joint
venture.

8. Cash and cash equivalents

Cashcomprisescashinhandanddepositsthatcanbereadilywithdrawnondemand.Cashequivalentsinclude
short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject
to an insignificant risk of change in value.

9. Foreign currency transactions and translation of foreign currency financial statements

(1) Foreign currency transactions

Foreign currency transactions are translated to the functional currency of the Group at the spot exchange
rates on the dates of the transactions.

Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the
balance sheet date. The resulting exchange differences between the spot exchange rate on balance sheet date
and the spot exchange rate on initial recognition or on theprevious balance sheet date are recognised in profit
or loss. Non-monetary items that are measured at historical cost in foreign currencies are translated to
Renminbi using the exchange rate at the transaction date. Non-monetary items that are measured at fair value
in foreign currencies are translated using the exchange rate at the date the fair value is determined. The
resulting exchange differences are recognised in profit or loss or other comprehensive income according to
the nature of non-monetary items.

(2) Translation of foreign currency financial statements

When translating the foreign currency financial statements of overseas subsidiaries, assets and liabilities of
foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. Equity items,
excluding “retained earnings”, are translated to Renminbi at the spot exchange rates at the transaction dates.
Income and expenses of foreign operation are translated to Renminbi at the rates determined under a
systematic and rational method that approximate the spot exchange rates at the transaction dates.

Cash flow statement of foreign operation is translated to Renminbi at the rates determined under a systematic
and rational method that approximate the spot exchange rates at the cash flow occurrence dates. Effect of
foreign exchange rate changes on cash and cash equivalents is presented separately as “Effect of foreign
exchange rate changes on cash and cash equivalents” in the cash flow statement.

The resulting translation differences are recognised in other comprehensive income in shareholders’ equity
of balance sheet.

The translation differences accumulated in shareholders’ equity with respect to a foreign operation are
transferred to profit or loss in the period when the foreign operation is disposed.

10. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial
liability or an equity instrument of another enterprise.

(1) Recognition and derecognition of financial instruments

A financial asset or a financial liability is recognized when the Group becomes a party to the contractual
provisions of a financial instrument.

If one of the following criteria is met, a financial asset is derecognised:

① The contractual rights to the cash flows from the financial asset expire; or


② The financial asset was transferred, and the transfer qualifies for derecognition in accordance with
criteria set out below in “Transfer of financial assets”.

Afinancial liability (or part of it) is derecognized when its contractual obligation (or part of it) is discharged
or cancelled or expires. If the Group (as a debtor) makes an agreement with the creditor to replace the current
financialliabilitywithassuminganewfinancialliability,andcontractualprovisionsaredifferentinsubstance,
the current financial liability is derecognized and a new financial liability is recognized.

If the financial assets are traded regularly, the financial assets are recognized and derecognized at the
transaction date.

(2) Classification and measurement of financial assets

The Group classifies financial assets as measured at amortized cost, fair value through other comprehensive
income or fair value through profit or loss at initial recognition on the basis of both the entity’s business
model for managing the financial assets and the contractual cash flow characteristics of the financial asset.
Financial assets measured at amortized cost

The Group classifies the financial assets that meet the following conditions and are not designated as
measured at fair value through profit or loss as financial assets measured at amortized cost:

 The Group's business model of managing the financial assets aims at collecting contractual cash flows;
 The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

After the initial recognition, the effective interest rate method is adopted to measure the amortized cost of
such financial assets. Gains or losses arising from financial assets that are measured at amortized cost and
are notpartof anyhedging relationship shall be recorded in the currentprofit or loss when the financialassets
are derecognized, amortized according to the effective interest method or impaired.

Financial assets measured at fair value through other comprehensive income

The Group classifies the financial assets that simultaneously meet the following conditions and are not
specified as measured at fair value through profit or loss as financial assets measured at fair value through
other comprehensive income:

 The Group's business model of managing the financial asset aims at both collecting contractual cash
flows and selling the financial assets.

 The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.

After the initial recognition, this type of financialassets are subsequentlymeasured atfair value.The interest,
loss allowance or gain and exchange loss or gain calculated using the effective interest rate method are
included in the current profit or loss, while other gains or losses are included in other comprehensive income.
When derecognized, the accumulated gains or losses previously recorded in other comprehensive income
shall be transferred out from other comprehensive income and recorded in the current profit or loss.

Financial assets measured at fair value through profit or loss

In addition to the above financial assets measured at amortized cost and measured at fair value through other
comprehensive income, the Group classifies all other financial assets as financial assets measured at fair
value through profit or loss. At the time of initial recognition, in order to eliminate or significantly reduce
accounting mismatches, the Group irrevocably designates some financial assets that should have been
measured at amortized cost or measured at fair value through other comprehensive income as financial assets
measured at fair value through profit or loss.


After the initial recognition, this kind of financial asset is subsequently measured at fair value, and the gains
orlosses(includinginterestanddividendincome)generatedarerecordedintothecurrentprofitorloss,unless
the financial asset is part of the hedging relationship.

However, for non-trading equity instrument investment, the Group irrevocably designates it as a financial
asset measured at fair value through other comprehensive income at initial recognition. The designation is
made on a single investment basis and the relevant investments meet the definition of an equity instrument
from issuer's perspective.

After the initial recognition, this kind of financial assets are subsequently measured at fair value. Qualified
dividend income is included in the profit or loss, other gains or losses and changes in fair value are included
in other comprehensive income. When derecognized, the accumulated gains or losses previously recorded in
other comprehensive income are transferred out and recorded in retained earnings.

ThebusinessmodelofmanagingfinancialassetsreferstohowtheGroupmanagesfinancialassetstogenerate
cash flows. The business model determines whether the cash flow from the financial assets under
management of the Group is derived from the receipt of contractual cash flows, the sale of financial assets
or a combination of both.The Group determines its business modelfor managing financialassets on the basis
of objective facts and the specific business objectives for the management of financial assets determined by
key management personnel.

The Group assesses the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flows generated by the relevant financial assets on specified dates are solely payments of
principal and interest on the principal amount outstanding. Principal refers to the fair value of financial assets
at initial recognition. Interest includes consideration for the time value of money, the credit risk associated
with the amount of principal outstanding over a given period, and other basic lending risks and costs, as well
as a profit margin. In addition, the Group assesses contractual terms that may cause a change in the time
distribution or amount of the contractual cash flows of financial assets to determine whether they meet the
requirements of the above contractual cash flow characteristics.

Only when the Group changes the business model of managing financial assets, all affected related financial
assets shall be reclassified on the first day of the first reporting period after the change of the business model,
otherwise the financial assets shall not be reclassified after the initial recognition.

Financial assets are measured at fair value at the time of initial recognition. For financial assets measured at
fair value through profit or loss, relevant transaction costs are directly recorded into current profit or loss; for
other classes of financial assets, the relevant transaction costs are included in the initial recognition amount.
For accounts receivable arising from the sale of products or provision of services, which do not contain or
do not take into account the material financing component, the Group is entitled to collect the consideration
amount as expected as the initial recognition amount.

(3) Classification and measurement of financial liabilities

At the time of initial recognition, the financial liabilities of the Group are classified as: financial liabilities
measuredatfair valuethroughprofitorloss,andfinancialliabilities measuredatamortizedcost.Forfinancial
liabilities that are not classified as measured at fair value through profit or loss, relevant transaction costs are
included in their initial recognized amounts.

Financial liabilities measured at fair value through profit or loss

Financial liabilities measured at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated at the time of initial recognition as measured at fair value through profit
or loss. For such financial liabilities, the subsequent measurement shall be made according to the fair value,
and the gains or losses caused by changes in the fair value as well as the dividends and interest expenses
related to such financial liabilities shall be recorded into current profit or loss.

Financial liabilities measured at amortized cost


For other financialliabilities, the effective interest rate method shall be adopted, thesubsequentmeasurement
shall be made at the amortized cost, and the gains or losses arising from derecognition or amortization shall
be recorded into current profit or loss.

Financial guarantee contract

Financial guarantee contracts do not belong to financial liabilities measured at fair value through profit or
loss. They are measured at fair value at initial recognition and are subsequently measured at the higher of the
amount of the loss allowance determined in accordance with the expected credit loss model and the amount
initially recognized less the cumulative amortisation.

The distinction between financial liabilities and equity instruments

Financial liabilities refer to liabilities that meet one of the following conditions:

①Acontractual obligation to deliver cash or other financial assets to other parties.

② A contractual obligation to exchange financial assets or financial liabilities with another party under
potentially adverse conditions.

③Anon-derivativecontractthathastobesettledwithorcanbesettledwiththefirm'sownequityinstruments
in the future, under which the firm will deliver a variable number of its own equity instruments.

④Aderivative contract that has to be settled with or can be settled with the firm's own equity instruments in
the future, except for a derivative contract in which a fixed number of its own equity instruments are to be
exchanged for a fixed amount of cash or other financial assets.

An equity instrument is a contract that certifies ownership of the remaining interest in an enterprise's assets
after all liabilities have been deducted.

If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other
financial assets, such contractual obligation meets the definition of a financial liability.

If a financial instrument has to be settled with or can be settled with the Group's own equity instruments in
the future, consideration needs to be given to whether the Group's own equity instruments used to settle the
instrumentis to be usedas asubstitute for cashor otherfinancialassets, orto give theholder of theinstrument
the remaining interest in the issuer's assets after deduction of all liabilities. If it is the former, the instrument
is a financial liability of the Group; if it is the latter, the instrument is an equity instrument of the Group.
(4) Derivative financial instruments and embedded derivative instruments

The Group's derivative financial instruments include forward foreign exchange contracts, currencyexchange
rate swap contracts, interest rate swap contracts and foreign exchange options contracts, etc. .The initial
measurement is based on the fair value of the date of signing the derivative transaction contract, and the
subsequent measurement is based on its fair value.Aderivative with a positive fair value is recognised as an
asset;a negative fair value is recognized as a liability.Anygains or losses resulting from changes in fair value
that do not conform to the provisions of hedge accounting shall be directly recorded into the current profit or
loss.

For a hybrid instrument containing an embedded derivative instrument, if the host is a financial asset, the
hybrid instrument as a whole shall be subject to the relevant provisions on the classification of financial
assets. If the host is not a financial asset, the embedded derivative instrument shall be separated from the
hybrid instrument and accounted for as a separate derivative instrument if all of the following conditions are
met: the hybrid instrument is not measured at fair value through profit or loss; the economic characteristics
and risks of the embedded derivative are not closely related to the economic characteristics and risks of the
host; a separate instrument with the same terms as the embedded derivative would meet the definition of a
derivative. If it is not possible to measure the embedded derivative separately at the time of acquisition or on

the subsequent balance sheet date, the hybrid instrument as a whole is designated as a financial asset or
financial liability measured at fair value through profit or loss.

(5) Fair value of financial instruments

For the determination of fair value of financial assets and financial liabilities, see Note III.11.

(6) Impairment of financial assets

On thebasis of expectedcreditlosses, the Group conductsimpairmentaccounting treatmentfor the following
items and recognises the allowance:

 Financial assets measured at amortized cost;

 Receivables and debt investments measured at fair value and accounted for in other comprehensive

income;

 Contract assets as defined in theAccounting Standards for Business Enterprises No. 14 - Revenue;

 Lease receivables;

 Financial guarantee contracts (except for financial assets measured at fair value through profit or loss,
transfer of financial assets that do not meet the conditions for derecognition or those caused by
continuing involvement in transferred financial assets).

Measurement of expected credit losses

The term "expected credit loss" refers to the weighted average of the credit loss of a financial instrument
weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows that are
due to the Group in accordance with the contract and all the cash flows that the Group expects to receive,
discounted at the original effective interest rate, that is, the present value of all cash shortfalls.

The Group calculates the probabilistic weighted amount of the present value of the difference between the
cash flows receivable under the contract and the cash flows expected to be received and recognizes the
expected credit loss, taking into account reasonable and supportable information concerning past events,
current conditions and forecast of future economic conditions, with the respective risks of a default occurring
as the weights.

The Group separately measures the expected credit losses of financial instruments at different stages. If the
creditrisk ofthe financialinstrumenthas not increased significantlysince the initialrecognition, the financial
instrumentis in the firststage andtheGroup shall measurethe loss allowanceatan amount equalto12‑month
expected credit losses; if the credit risk of the financial instrument has increased significantlysince the initial
recognition but no credit losses have occurred, the financial instrument is in the second stage and the Group
shall measure the loss allowance at an amount equal to lifetime expected credit losses; if credit losses have
occurred to a financial instrument since its initial recognition, it is in the third stage and the Group shall
measure the loss allowance at an amount equal to lifetime expected credit losses.

For financial instruments with low credit risk at the balance sheet date, the Group assumes that the credit risk
has not increased significantly since the initial recognition, and measures the loss allowance at an amount
equal to 12‑month expected credit losses.

The term "lifetime expected credit losses" refers to the expected credit losses resulting from all possible
events of default during the entire expected life of a financial instrument. The expected credit losses within
the next 12 months refer to the expected credit loss caused by the default event of the financial instrument
that may occur within 12 months after the balance sheet date (or the expected duration of the financial
instrument if the expected duration of the financial instrument is less than 12 months) and is part of lifetime
expected credit losses.


When measuring expected credit losses, the Group shall take into account the longest contract period
(including the option to renew the contract) for which it is exposed to credit risk.

The Group calculates interest income on the basis of the Book value before impairment provisions and the
effective interest rate for financial instruments in stage I and stage II and with lower credit risk. For financial
instruments in the third stage, the interest income is calculated on the basis of the amortized cost of the Book
value less the impairment provision and the effective interest rate.

 Bills receivable, accounts receivable and contract assets

For bills receivable, accounts receivable and contract assets, regardless of whether there is a material
financing component, the Group always measures its loss allowance at an amount equal to lifetime expected
credit losses.

When an individual financial asset cannot assess the information of expected credit loss at a reasonable cost,
the Group divides the bills receivable and accounts receivable into groups according to the credit risk
characteristics, calculates the expected credit losses based on the groups which are determined as follows:
A. Notes receivable

 Group 1 of notes receivable: Bank acceptance notes

 Group 2 of notes receivable: Commercial acceptance notes

 Group 3 of notes receivable: Usance letters of credit

B. Accounts receivable

 Group 1 of accounts receivable:Accounts receivable due from feed related customers

 Group 2 of accounts receivable: Accounts receivable due from related parties within the scope of
consolidation

 Group 3 of accounts receivable:Accounts receivable due from raw materials customers

For the bills receivable divided into groups, the Group calculates the expected credit loss through default risk
exposure and the lifetime expected credit loss rate by referring to the historical credit loss experience,
combining the current situation and the forecast of the future economic situation.

For the accounts receivable divided into groups, the Group refers to the historical credit loss experience and
combines the current situation with the forecast of the future economic situation to compile a comparison
table between the age of receivables/overdue days and the lifetime expected credit loss rate and to calculate
the expected credit loss.
 Other receivables

The Group divides other receivables into several groups according to the credit risk characteristics, and
calculates the expected credit losses on the basis of the groups which are determined as follows:

 Group 1 of other receivables: Security deposits

 Group 2 of other receivables: Futures margin

 Group 3 of other receivables: Receivables due from external parties

 Group 4 of other receivables:Advance social security and provident fund

 Group 5 of other receivables: Petty cash


 Group 6 of other receivables: Other receivables due from related parties within the scope of
consolidation

 Group 7 of other receivables: Others

For other receivables divided into groups, the Group calculates the expected credit losses by default risk
exposure and the expected credit losses rate over the next 12 months or the entire duration.

 Loans and advances to customers

For loans and advances to customer, the Group calculates the expected credit loss through the exposure at
default and the expected credit loss rate within the next 12 months or the entire duration.

 Long-term receivables

The Group's long-term receivables include financial lease receivables, security deposit receivables, etc.

According to the credit risk characteristics, the Group divides financial lease receivables, security deposit
receivables into several groups. The expected credit loss is calculated on the basis of the groups which are
determined as follows:
A. Finance lease receivables

 Group 1 of finance leases: Receivable due from related parties within the scope of consolidation.

 Group 2 of finance leases: Receivable due from other customers

B. Other long-term receivables

 Group 1 of long-term receivables: Security deposit receivables

 Group 2 of long-term receivables: Other receivables

For security deposit receivables, the Group refers to historic credit losses experience, combined with the
current situation and forecast for the future economic situation, to calculate the expected credit losses by
default risk exposure and the lifetime expected credit loss rate.

Forotherreceivablesandlong-termreceivablesinadditiontosecuritydepositreceivables,theexpectedcredit
losses are calculated by default risk exposure and the expected credit loss rate within the next 12 months or
the entire duration.

 Debt investment and other debt investment

For debt investment and other debt investment, the Group calculates the expected credit loss based on the
default risk exposure and the expected credit loss rate within the next 12 months or the entire duration
according to the nature of the investment and the various types of counterparties and risk exposures.

 Assessment of a significant increase in credit risk

By comparing the risk of default of financial instruments on the balance sheet date with the risk of default
on the initial recognition date, the Group determines the relative change of default risk within the expected
duration of financial instruments, so as to evaluate whether the credit risk of financial instruments has
significantly increased since the initial recognition.

In determining whether credit risk has increased significantly since the initial recognition, the Group
considers reasonable and supportable information, including forward-looking information that can be
obtained without unnecessary additional cost or effort. Information considered by the Group includes:

 The debtor fails to pay the principal and interest as due under the contract;


 Amaterial deterioration, if any, of the external or internal credit rating of the financial instrument that
has occurred or is expected to occur;

 Aserious deterioration of the debtor's business results occurred or is expected to occur;

 Achange in the existing or anticipated technological, market, economic or legal environment which
will have a material adverse effect on the debtor's ability to repay the Group.

According to the nature of financial instruments, the Group evaluates whether credit risk increases
significantly on the basis of individual financial instruments or a group of financial instruments. When
assessing on the basis of a group of financial instruments, the Group mayclassifyfinancial instruments based
on common credit risk characteristics, such as overdue information and credit risk rating.

If overdue for more than 30 days, the Group determines that the credit risk of the financial instrument has
increased significantly.
 Credit-impaired financial assets

On the balance sheet date, the Group evaluates whether credit impairment has occurred in financial assets
measured atamortized costand debtinvestments measured atfair value throughothercomprehensive income.
When one or more events which have an adverse effect on the expected future cash flows of a financial asset
occur, the financial asset becomes a credit-impaired financial asset. Evidence of credit impairment of
financial assets includes the following observable information:

 Major financial difficulties occur to the issuer or the debtor;

 Abreach of contract by the debtor, such as a default or late payment of interest or principal;

 The Group, for economic or contractual considerations relating to the debtor's financial difficulties,

gives concessions that the debtor would not have made under any other circumstances;

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

 The financial difficulties of the issuer or debtor result in the disappearance of an active market for the
financial asset.

 Presentation of expected credit losses

In order to reflect the changeof the credit risk of financialinstruments since the initial recognition, the Group
re-measures the expected credit losses on each balance sheet date, and the increase or recovered amount of
the loss allowance thus formed shall be recorded into the current profit or loss as a loss allowance or gain.
For a financial asset measured at amortized cost, the loss allowance shall offset the carrying amount of the
financial asset as stated in the balance sheet; for the debt investment measured at fair value through other
comprehensive income, the Group recognizes its loss allowance in other comprehensive income and does
not offset the carrying amount of the financial asset.

 Write-off

If the Groupno longer reasonablyexpects thatthe contractualcash flows of a financialasset can be recovered
in its entirety or a portion thereof, the carrying amount of the financial asset shall be directly written-off.
Such a write-off constitutes a derecognition of the relevant financial asset. This usually occurs when the
Group determines that the debtor does not have assets or sources of income that generate sufficient cash
flows to repay the amount to be written-off. However, in accordance with the Group's procedures for
recovering amounts due, the financial assets that have been written-off may still be affected by the execution
activities.

If a financial asset that has been written-off is recovered later, a reversal of loss allowance shall be recorded
in profit or loss of the current period.

(7) Transfer of financial assets

Transfer of financial assets is the transfer or deliveryof financial assets to another party (the transferee) other
than the issuer of financial assets.

A financial asset is derecognized if the Group transfers substantially all the risks and rewards of ownership
of the financial asset to the transferee.Afinancial asset is not derecognized if the Group retains substantially
all the risks and rewards of ownership of the financial asset to the transferee.

The Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset, the accounting treatments are as following: if control over the financialassets is surrendered, theGroup
derecognizesthefinancialassetsandrecognizeanyassets andliabilitiesarose; iftheGroupretainsthecontrol
of the financial assets, financial assets to the extent of the continuing involvement in the transferred financial
assets by the Group and any relating liability are recognized.

(8) Offset between financial assets and financial liabilities

When the Group has the legal right to offset the recognized financial assets and financial liabilities, and the
legal rights is enforceable, and the Group plans to settle by net amount or realize the financial assets and pay
offthefinancialliabilities,theamountafterbeingoffsetispresentedinthebalancesheet.Otherwise,financial
assets and financial liabilities are presented separately in the balance Sheet and not allowed to offset against
each other.
11. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.

The Group measures related assets or liabilities at fair value assuming the assets or liabilities are exchanged
in an orderly transaction in the principal market; in the absence of a principal market, assuming the assets or
liabilities are exchanged in an orderly transaction in the most advantageous market. Principal market (or the
mostadvantageousmarket)isthemarketthattheGroupcannormallyenterintoatransactiononmeasurement
date. The Group adopts the presumptions that would be used by market participants in achieving the
maximized economic value of the assets or liabilities.

For financial assets or financial liabilities with active markets, the Group uses the quoted prices in active
markets as their fair value. Otherwise, the Group uses valuation technique to determine their fair value.

Fair value measurement of a non-financial asset takes into account market participants’ ability to generate
economic benefits using the asset in its best way or by selling it to another market participant that would best
use the asset.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use ofrelevantobservable inputs, and using unobservable
inputs only if the observable inputs aren’t available or impractical.

Fair value level for assets and liabilities measured or disclosed at fair value in the financial statements are
determined according to the significant lowest level input to the entire measurement: Level 1 inputs are
quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the
measurement date; Level 2 inputs are inputs other than quoted prices included within Level 1 that are
observable for the assets or liabilities, either directly or indirectly; Level 3 inputs are unobservable inputs for
the assets or liabilities.

At the balance sheet date, the Group revalues assets and liabilities being measured at fair value continuously
in the financial statements to determine whether to change the levels of fair value measurement.

12. Inventories

(1) Classification

Inventories include raw materials, finished goods, work in progress, consumptive biological assets and
consigned processing material, etc..

(2) Measurement method of cost of inventories

Inventories are initially measured at cost. If the inventories are managed by batch at the time of receipt and
delivery, these inventories shall be carried forward at batch cost. Otherwise, inventories are calculated by
using weighted average method.

(3) Basis for determining the net realisable value and method for provision for obsolete inventories

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs
of completion and the estimated costs necessary to make the sale and relevant taxes. The net realisable value
is measured based on the verified evidences and considerations for the purpose of holding inventories and
the effect of post balance sheet events.

Any excess of the cost over the net realisable value of inventories is recognised as a provision for obsolete
inventories, and is recognised in profit or loss. The Group usually recognises provision for decline in value
of inventories by a single or a type of inventory item. If the factors caused the value of inventory previously
written-down have disappeared, the provision for decline in value of inventories previouslymade is reversed.
(4) Inventory count system

The Group maintains a perpetual inventory system.

13. Assets held for sale and discontinued operations

(1) Classification and measurement of non-current assets or disposal groups held for sale

The Group classifies a non-current asset or disposal group as held for sale when the carrying amount of the
non-current asset or disposal group will be recovered through a sale transaction (including an exchange
transaction of non-monetary assets with commercial substance) rather than through continuing use.

Non-current assets mentioned above do not include investment properties subsequently measured with the
fair value model, biological assets measured at fair value less costs to sell, assets arising from employee
benefits, financial assets, deferred tax assets and contractual rights under insurance contracts.

The disposal group is a group of assets to be disposed of, by sale or otherwise, together as a whole in a single
transaction, and liabilities directly associated with those assets that will be transferred in the transaction. In
certain circumstances, disposal groups include goodwill acquired in a business combination.

A non-current asset or disposal group is classified as held for sale when all the following criteria are met:
according to the customary practices of selling such asset or disposal group in similar transactions, the non-
current asset or disposal group is available for immediate sale in its present condition; the sale is highly
probable to occur, that is, the Group has made a resolution on a sale plan and entered into a legally binding
purchase agreement with other parties. The sale is expected to be completed within one year. The Group that
is committed to a sale plan involving loss of control of a subsidiary classifies all the investment in that
subsidiary as held for sale in its separate financial statements, and classifies all the assets and liabilities of
that subsidiary as held for sale in its consolidated financial statements, when the classification criteria for
held for sale are met, regardless of whether the Group retains a non-controlling interest in its former
subsidiary after the sale.

Non-current assets or disposal groups held for sale are initially and subsequently measured at the lower of
carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less
costs to sell is recognised as a loss allowance in profit or loss. The loss allowance recognised for a disposal
group firstly reduces the carrying amount of goodwill allocated to the disposal group, and then reduces the

carrying amount of other non-current assets pro rata on the basis of the carrying amount of each non-current
asset in the disposal group.

The Group recognises a gain for any subsequent increase in fair value less costs to sell of an asset, but not in
excess of the cumulative lossallowance thathas been recognised after classified as held for sale.The reduced
carrying amount of goodwill is not recovered.

The Group does not depreciate (or amortise) a non-current asset while it is classified as held for sale or while
itis partof adisposalgroup classified as held for sale. Interest and otherexpenses attributable to the liabilities
of a disposal group classified as held for sale continue to be recognised. If an investment or a part of
investment in an associate or a joint venture is classified as held for sale, equity method is not used for the
part classified as held for sale, while equity method is used for the rest part (the part not classified as held for
sale) continually. When the Group does not have material impact on an associate or a joint venture due to the
sale transaction, it stops using equity method.

The Group measures a non-current asset that ceases to be classified as held for sale at the lower of:

① its carrying amount of the asset or disposal group before it was classifying as held-for-sale, and adjusted
for any depreciation, amortization or impairment as if it has not being classified as held-for-sale;

② its recoverable amount.

(2) Discontinued operations

The Group classifies a component as a discontinued operation either upon disposal of the operation or when
the operation meets the criteria to be classified as held for sale if it is separately identifiable and satisfies one
of the following conditions:

① It represents a separate major line of business or a separate geographical area of operations;

② It is part of a single coordinated plan to dispose of a separate major line of business or a separate
geographical area of operations;

③ It is a subsidiary acquired exclusively with a view to resale.

(3) Presentation

The Group presents a non-current asset classified as held for sale and the assets of a disposal group classified
as held for sale as “Assets held for sale” in balance sheet. The liabilities of a disposal group classified as held
for sale is presented as “Liabilities held for sale” in balance sheet.

TheGroup presents profitor lossfromdiscontinued operations separatelyfrom profit or loss fromcontinuing
operations in income statement. Loss allowance and reversal amount and any disposal gain or loss of a non-
current asset or disposal group classified as held for sale that does not meet the definition of a discontinued
operation is included in profit or loss fromcontinuing operations.Anygain or loss fromcontinuing operation
of discontinued operations, including loss allowance and reversal amount, and disposal gain or loss is
included in profit or loss from discontinued operations.

A disposal group which is planned to cease operation rather than for sale, and meets the criteria of a part of
discontinued operation, the Group presents it as discontinued operation from the date of cessation.

Where an operation is classified as discontinued in the current period, profit or loss from continuing
operations and profit or loss from discontinued operations are separately presented in the income statement
forthecurrentperiod.Ifthe Groupceasestoclassifyadiscontinuedoperationasheldforsale,theinformation
previously presented in discontinued operations is reclassified and included in income from continuing
operations for all periods presented.

14. Long-term equity investments

Long-term equity investments include equity investments in subsidiaries and equity investments in joint
ventures and associates.An associate is an enterprise over which the Group has significant influence.

(1) Determination of initial investment cost

The initial cost of a long-term equity investment acquired through a business combination involving
enterprises under common control is the Group’s share of the carrying amount of the subsidiary’s equity in
the consolidated financial statements of the ultimate controlling party at the combination date. For a long-
term equity investment obtained through a business combination not involving enterprises under common
control, the initial cost is the combination cost.

A long-term equity investment acquired other than through a business combination: A long-term equity
investment acquired other than through a business combination is initially recognised at the amount of cash
paid if the Group acquires the investment by cash, or at the fair value of the equity securities issued if an
investment is acquired by issuing equity securities.

(2) Subsequent measurement and recognition of profit or loss

Long-term equity investments in subsidiaries are accounted for using the cost method. An investment in a
joint venture or an associate is accounted for using the equity method for subsequent measurement.

For a long-term equity investment which is accounted for using the cost method, Except for cash dividends
or profit distributions declared but not yet distributed that have been included in the price or consideration
paid in obtaining the investments, the Group recognises its share of the cash dividends or profit distributions
declared by the investee as investment income for the current period.

For a long-term equity investment which is accounted for using the equity method, where the initial cost of
a long-term equity investment exceeds the Group’s interest in the fair value of the investee’s identifiable net
assets at the date of acquisition, the investment is initially recognised at cost. Where the initial investment
cost is less than the Group’s interest in the fair value of the investee’s identifiable net assets at the date of
acquisition, the investment is initially recognised at the investor’s share of the fair value of the investee’s
identifiable net assets, and the difference is recognised in profit or loss.

Under the equity method, the Group recognises its share of the investee’s profit or loss and other
comprehensive income as investment income or losses and other comprehensive income respectively, and
adjusts the carrying amount of the investment accordingly. Once the investee declares any cash dividends or
profitdistributions, the carrying amountof the investment is reduced bythe amount attributable to the Group.
Changes in the Group’s share of the investee’s owners’ equity, other than those arising from the investee’s
net profit or loss, other comprehensive income or profit distribution (referred to as “other changes in owners’
equity”), is recognised directly in the Group’s equity, and the carrying amount of the investment is adjusted
accordingly. In calculating its share of the investee’s net profits or losses, other comprehensive income and
other changes in owners’equity, the Group recognises investment income and other comprehensive income
after making appropriate adjustments to align the accounting policies or accounting periods with those of the
Group based on the fair value of the investee’s identifiable net assets at the date of acquisition.

When the Group becomes capable of exercising joint control or significant influence (but not control) over
an investee due to additional investment or other reasons, the Group uses the fair value of the previously-
held equity investment, together with additional investment cost, as the initial investment cost under the
equity method. If the original equity is classified as non-trading equity instrument investment measured at
fair value and its changes are included in other comprehensive income, the relevant accumulative changes in
fair value originally included in other comprehensive income will be transferred to retained earnings when
changed to equity method accounting.

When theGroup can no longer exercise joint control of or significantinfluence over an investeedue to partial
disposal of the equity investment or other reasons, the remaining equity investment shall be accounting for

using Accounting Standard for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments, and the difference between the fair value and the carrying amount of the remaining equity
investment shall be charged to profit or loss for the current period at the date of the loss of joint control or
significant influence.Any other comprehensive income previously recognised under the equity method shall
be accounted for on the same basis as would have been required if the Group had directly disposed of the
related assets or liabilities for the current period upon discontinuation of the equity method. Other movement
of owner’s equity related to original equity investment is transferred to profit or loss for the current period.
When the Group can no longer exercise control over an investee due to partial disposal of the equity
investmentorotherreasons,andtheremainingequityafterdisposalcanexercisejointcontroloforsignificant
influence over an investee, the remaining equity is adjusted as using equity method from acquisition. When
the remaining equity can no longer exercise joint control of or significant influence over an investee, the
remaining equity investment shall be accounted for usingAccounting Standard for Business Enterprises No.
22-Recognition and Measurement of Financial Instruments, and the difference between the fair value and the
carrying amount of the remaining equity investment shall be charged to profit or loss for the current period
at the date of loss of control.

When the Group can no longer exercise control over an investee due to new capital injection by other
investors, and the Group can exercise joint control of or significant influence over an investee, the Group
recognizes its shareof theinvestee’s newaddednetassetsusing newshareholdingpercentage.Thedifference
between its new share of the investee’s new added net assets and its decreased shareholding percentage of
the original investment is recognized in profit or loss.And the Group adjusts to the equity method using the
new shareholding percentage as if it uses the equity method since it obtains the investment.

Unrealised profits and losses resulting from transactions between the Group and its associates or joint
ventures are eliminated to the extent of the Group’s interest in the associates or joint ventures. Unrealised
losses resulting from transactions between the Group and its associates or joint ventures are eliminated in the
same way as unrealised gains but only to the extent that there is no impairment.

(3) Criteria for determining the existence of joint control or significant influence over an investee

Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control. When
assessing whether the Group can exercise joint control over an investee, the Group first considers whether
no single participant party is in a position to control the investee’s related activities unilaterally, and then
considers whether strategic decisions relating to the investee’s related activities require the unanimous
consent of all participant parties that sharing of control. All the parties, or a group of the parties, control the
arrangement collectively when they must act together to direct the relevant activities. When more than one
combination of the parties can control an arrangement collectively, joint control does not exist. A party that
holds only protective rights does not have joint control of the arrangement.

Significant influence is the power to participate in the financial and operating policy decisions of an investee
but does not have control or joint control over those policies. When determining whether the Group can
exercise significant influence over an investee, the effect of potential voting rights (for example, warrants,
share options and convertible bonds) held by the Group or other parties that are currently exercisable or
convertible shall be considered.

When the Group, directly or indirectly through subsidiaries, owns 20% of the investee (including 20%) or
more but less than 50% of the voting shares, it has significant influence over the investee unless there is clear
evidence to show that in this case the Group cannot participate in the production and business decisions of
the investee, and cannot form a significant influence. When the Group owns less than 20% of the voting
shares, generally it does not have significant influence over the investee, unless there is clear evidence to
show that in this case the Group can participate in the production and business decisions of the investee so
as to form a significant influence.

(4) Equity investments held for sale


Accounting for an entity investment, or a portion of an equity investment, in an associate or a joint venture
that is classified as held for sale refers to Note III.13.

Any remaining equity investment that has not been classified as held for sale shall be accounted for using the
equity method.

When an equity investment in an associate or a joint venture previously classified as held for sale no longer
meets the criteria to be so classified, it is accounted for using the equity method retrospectively as from the
date of its classification as held for sale.

(5) Method of impairment testing and impairment provision

For investments in subsidiaries, associates and joint ventures, refer to Note III. 22 for the Group’s method of
asset impairment.
15. Investment property

Investment properties are properties held either to earn rental income or for capital appreciation or for both.
The Group’s investment properties include leased land use rights, land use right held and provided for to
transfer after appreciation and leased building and construction.

Investment properties are initially measured at acquisition cost, and depreciated or amortized using the same
policy as that for fixed assets or intangible assets.

For the impairment of the investment properties accounted for using the cost model, refer to Note III.22.
Gains or losses arising from the sale, transfer, retirement or disposal of an item of investment property are
determined as the difference among the net disposal proceeds, the carrying amount of the item, related taxes
and surcharges, and are recognised in profit or loss for current period.

16. Fixed assets
(1) Recognition of fixed assets

Fixed assets represent the tangible assets held by the Group for use in production of goods, use in supply of
services, rental or for administrative purposes with useful lives over one accounting year.

Fixed assets are only recognised when its related economic benefits are likely to flow to the Group and its
cost can be reliably measured.

Fixed asset are initially measured at cost.

Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic
benefits related to them are likely to flow into the Group and their costs can be measured reliably; the daily
repair expenses of fixed assets that do not meet the criteria for subsequent expenditure of fixed assets
capitalization shall be included in the current profit or loss or the cost of relevant assets according to the
beneficiary at the time of occurrence. The carrying amount of the replaced part shall be derecognized.

(2) Depreciation of fixed assets

The cost of a fixed asset is depreciated using the straight-line method since the state of intended use, unless
the fixed asset is classified as held for sale. Not considering impairment provision, the estimated useful lives,
residual value rates and depreciation rates of each class of fixed assets are as follows:

Category Estimated useful life Residual value rate % Depreciation rate %
(years)

Plant and buildings 5-40 (Note) 5 19.00-2.38


Category Estimated useful life Residual value rate % Depreciation rate %
(years)

Machinery and 3-12 5 31.67-7.92
equipment

Motor vehicles 5 5 19.00

Electronic equipment 3-5 5 31.67-19.00

Others 3-5 5 31.67-19.00

Note:

① For the immovable buildings on the leased land, they are depreciated over the shorter of the lease
term of land use right and the expected useful lives of the immovable buildings.

② The Group purchased freehold lands in India, Ecuador and Indonesia. No depreciation is recognizes
for these lands because their estimated useful lives is uncertain. The Group tests for impairment on
these lands every year.

For impaired fixed assets, depreciation rate is calculated based on the carrying amounts after deducting the
provision for impairment.

(3) For the impairment of the fixed assets, please refer to Note III. 22.

(4) Useful lives, estimated residual values and depreciation methods are reviewed at least at each year-end.

The Group adjusts the useful lives of fixed assets if their expected useful lives are different with the original
estimates and adjusts the estimated net residual values if they are different from the original estimates.

(5) Disposal of fixed assets

When the fixed assets are disposed, or no economic benefit is expected to be generated through the use or
disposal, the fixed assets shall be derecognised. The amount of the disposal income from the sale, transfer,
scrapping or destruction of fixed assets after deducting its carrying value and relevant taxes is recorded into
the current profit or loss.

17. Construction in progress

Construction in progress is recognized based on the actual construction cost, including all expenditures
incurred for construction Items, capitalised borrowing costs and any other costs directly attributable to
bringing the asset to working condition for its intended use.

Construction in progress is transferred to fixed asset when it is ready for its intended use.

For the impairment of construction in progress, please refer to Note III. 22.

18. Borrowing costs
(1) Capitalisation criteria

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying

asset shall be capitalised as part of the cost of that asset. Other borrowing costs are expensed in profit or loss
as incurred. The capitalisation of borrowing costs shall commence only when the following criteria are met:
① Capital expenditures have been incurred, including expenditures that have resulted in payment of cash,
transfer of other assets or the assumption of interest-bearing liabilities;

② Borrowing costs have been incurred;

③ The activities that are necessary to prepare the asset for its intended use or sale have commenced.

(2) Capitalisation period

The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready
for its intended use, the borrowing costs incurred thereafter are recognised in profit or loss for the current
period.

Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a
fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition
or construction is resumed.

(3) Capitalisation rate of borrowing costs and calculation basis of capitalised amount

For interest expense actually incurred on specific borrowings, the eligible capitalised amount is the net
amount of the borrowing costs after deducting any investment income earned before some or all of the funds
are used for expenditures on the qualifying asset. To the extent that the Group borrows funds generally and
uses themfor the purpose of obtaining a qualifying asset, the Group shall determine the amount of borrowing
costs eligible for capitalisation by applying a capitalisation rate to the expenditures on that asset, the
capitalisation rate shall be the weighted average of the borrowing costs applicable to the borrowings of the
Group that are outstanding during the period, other than borrowings specifically for the purpose of obtaining
a qualifying asset.

In the capitalisation period, exchange differences of specific borrowings in foreign currency shall be
capitalised; exchange differences of general borrowings in foreign currency is recognised in profit or loss for
the current period.
19. BiologicalAssets

(1) Recognition criteria for biological assets

Biological assets are assets that composed of living animals and plants. Biological assets shall be recognized
if they satisfy all of the following conditions:

① The entity owns or controls the biological asset due to past transactions or events;

② The economic benefits or potential service related to the biological asset are probable to flow into the
entity;

③ The cost of the biological asset can be measured reliably.

(2) Classification of biological assets

The Group’s biological assets include consumptive biological assets and productive biological assets.

① Consumptive biological assets

Consumptive biological assets is the biological assets held-for-sale or harvested as agricultural products in
the future, including livestock for sale, etc. Consumptive biological assets are initially measured at cost. The
cost of self-propagating or breeding consumptive biological assets is the necessary expenditure incurred that
can directlyattributable to the asset before the asset is sold or shipped, including capitalized borrowing costs.
Subsequent expenditures after harvest such as management, protection and feeding expenses are recognized
in the profit or loss for the current period.

When the consumptive biological assets are harvested or sold, the cost of goods sold is recognized based on
the carrying amount using the weighted average method.

② Productive biological assets

Productive biological assets are the biological assets held for the purpose of producing agricultural products,
providing services or leasing, including livestock production. Productive biological assets are initially
measured at cost. The cost of productive biological asset by self-growing or propagating is the necessary
expenditure directly attributable to the asset incurred before the asset reaches its intended production and
operation purpose, including capitalized borrowing costs.

The subsequent expenditures for managing, protecting and feeding the productive biological assets incurred
after crown closure or reaching its intended objective of production and operation is recognized in profit or
loss for the current period.

Productive biological assets are depreciated by straight-line method. Depreciation for each period is
calculated and recognized based on the estimated useful lives less residual value of each type of biological
assets.

At the end of each year, the Group reviews the useful lives, estimated net residual values and depreciation
methods of productive biological assets. If there is any change, it is treated as a change in accounting
estimates.

The proceeds on disposal of productive biological asset for the sales, inventory loss, dead or damage less the
carrying amount and related taxes are recognized in profit or loss for the current period.

③ Impairment of biological assets

When the net realizable value of a consumptive biological asset is lower than its carrying amount, the
difference is recognized as the impairment provision and the corresponding impairment loss is recognized in
profit or loss for the current period. If the previous factors caused the decline in value of consumptive
biological asset have disappeared at the balance sheet date, the previously recognized provision for decline
in value of consumptive biological assets is reversed, to the extent of provision recognized in the past, the
reversal amount is recognized in profit or loss for the current period.

For the impairment of productive biological assets, please refer to Note III. 22.

20. Intangible assets

Intangible assets include land use rights, patent rights, software use rights, trademarks, and non-patent, etc.

Intangible asset is initially measured cost and its useful life is determined at the time of acquisition. An
intangible asset with a finite useful life is amortized by a method which can reflect the expected realization
of economic benefits related to the asset since the intangible asset is available for use. When the expected
realization of economic benefits cannot be reliably determined, intangible asset is amortized under straight-
line method.An intangible asset with an indefinite useful life is not amortized.

At the end of each year, the Group reviews the useful life and amortization method of intangible assets with
finite useful life. If there is any change, adjustment made to original estimates and it shall be treated as the
change of accounting estimate.

On the balance sheet date, an intangible asset shall be derecognized in profit or loss for the current period
when it is not expected to generate future economic benefits.

For the impairment of intangible assets, please refer to Note III. 22.

21. Research and development expenditure

Expenditure on an internal research and development project is classified into expenditure incurred during
the research phase and expenditure incurred during the development phase.

Expenditure during the research phase is expensed when incurred.

Expenditure during the development phase is capitalised if the product or process is technically and
commercially feasible; the Group intends to complete the development; the intangible asset can generate
economic benefits, including there is evidence that the products produced using the intangible asset has a
market or the intangible asset itself has a market; if the intangible asset is for internal use, there is evidence
that there is usage for the intangible asset; there is sufficient support in terms of technology, financial
resources and other resources in order to complete the development and use or sell the intangible asset; and
development costs can be measured reliably. Other development expenditure is recognised as an expense in
the period in which it is incurred.

Research and development projects of the Group will enter into the development phase when they meet the
above conditions, technical and economic feasibility research is finished and necessary approval of the
project is obtained.

Capitalised expenditure on the development phase is presented as “development costs” in the balance sheet,
and is transferred to intangible assets when the project is completed to its intended use.

22. Impairment of assets

The impairment of long-term equity investments in subsidiaries, associates and joint ventures, investment
properties measured by the cost model, fixed assets, construction in progress, productive biological assets
measured by the cost model, intangible assets, goodwill, etc. (excluding inventories, investment properties
measured by the fair value model, deferred tax assets and financial assets) are determined as follows:


At the balance sheet date, the Group assesses whether there is any indication of impairment. If anyindication
exists, the Group will estimate the recoverable amount and test for impairment. For goodwill arising from a
business combination, intangible assets with indefinite useful life and intangible assets that are not ready for
use are tested for impairment annually, regardless of whether there is any indication of impairment.

The recoverable amount of an asset is the higher of its fair value less disposal costs and the present value of
expected future cash flows. The Group estimates the recoverable amount based on each individual asset. If
it is impossible to estimate the recoverable amount of each individual asset, the Group determines the
recoverable amount for the asset group to which the asset belongs. An asset group is determined based on
whether the main cash inflow generated by the asset group is independent of the cash inflow of other assets
or asset groups.

An impairment loss is recognized in profit or loss when the recoverable amount of an asset is less than its
carrying amount.Aprovision for impairment of the asset is recognized accordingly.

For the impairment test of goodwill, the carrying amount of goodwill arising from a business combination
shall be allocated to the relevant asset groups by using a reasonable method from the date of acquisition. If
thecarryingamountofgoodwillisunabletobeallocatedtotheassetgroup,itshallbeallocatedtotherelevant
set of asset groups. Relevant asset group or set of asset groups is the asset group or group of asset groups,
that is expected to benefit from the synergies of the combination and not greater than the reportable segment
of the Group.

If any impairment indication exists in asset group or set of asset groups related to goodwill, the Group shall
perform an impairment test for the asset group or set of asset groups which does not contain goodwill first,
the recoverable amount is calculated and recognized the corresponding impairment losses. Then the Group
shallperforman impairment testfor the asset group or set of asset groups thatcontain goodwill bycomparing
its carrying amount and recoverable amount. If the recoverable amount is less than the carrying amount,
impairment loss of goodwill is recognized.

Once an impairment loss is recognized, it cannot be reversed in a subsequent period.

23. Long-term deferred expenses

Long-term deferred expenses are recorded at the actual cost, and amortized using a straight-line method
withinthebenefitperiod. Forlong-termdeferredexpensethatcannotbringbenefitinfutureperiod,theGroup
recognized its amortised cost in profit or loss for the current period.

24. Employee benefits
(1) Scope of employee benefits

Employee benefits refer to all forms of consideration or compensation given by the Group in exchange for
service rendered byemployees or for the termination of employment relationship. Employee benefits include
short-term employee benefits, post-employment benefits, termination benefits and otherlong-termemployee

benefits. Benefits provided to the Group’s spouse, children, dependents, family members of deceased
employees or other beneficiaries are also part of the employee benefits.

According to liquidity, employee benefits are presented as “employee benefits payable” and “long-term
employee benefits payable” on the balance sheet.

(2) Short-term employee benefits

In the current period, the Group has accrued for the actual wages, bonuses, medical insurance for employees
based on standard rate, workinjuryinsurance and maternityinsurance and other socialinsurance and housing
fund incurred and these are recognised as liabilities and corresponding costs in the profit or loss.

(3) Post-employment benefits

Post-employment benefit plan includes defined contribution plans and defined benefit plans. Defined
contribution plans are post-employment benefit plans which an entity pays a fixed amount of fee to an
independent fund and has no further payment obligation. Defined benefit plans are post-employment benefit
plans other than defined contribution plans.

Defined contribution plans

Defined contribution plans include basic pension insurance, unemployment insurance, etc.

The contribution amount calculated according to the define contribution plan is recognized as a liability as
the employee provides services, with a corresponding charge to profit or loss or included in the cost of assets
where appropriate.

Defined benefit plans

For defined benefit plans, independent actuaries estimate the actuarial value at the balance sheet date to
determine the cost of welfare by using the projected unit credit method. The Group recognizes the following
components of employee benefits cost arising from defined benefit plan:

① service cost, comprising current service cost, past service cost and any gain or loss on settlement. Current
service cost is the increase inthe presentvalue of the defined benefit plan obligation resulting fromemployee
service in the current period. Past service cost is the increase or decrease in the present value of the defined
benefit plan obligation for employee service in prior periods, resulting from a plan amendment.

② net interest on the net defined benefit plan liabilities or assets, including interest income on plan assets,
interest cost on the defined benefit plan obligation and interest on the effect of the asset ceiling.

③ changes as a result of re-measurement of the net defined benefit liabilities or assets.

Item①and item②above should be recognized in profit or loss for the current period unless another
accounting standard requires or permits the inclusion of the employee benefit costs in the cost of assets. Item
③shall be recognized in other comprehensive income and shall not reclassified to profit or loss in a
subsequent period. On termination of defined benefit plans, other comprehensive income previously
recognized is transferred to retained earnings.

(4) Termination benefits

The Group provides termination benefits to employees, the employee liabilities arising from the termination
benefits shall be recognized with a corresponding charge to profit or loss at the earlier of the following dates:
when the Group cannot unilaterally withdraw the offer of termination benefits because of an employee
termination plan or a curtailment proposal; when the Group recognizes the costs or expenses related to a
restructuring plan involving the payment of termination benefits.


When the Group implements an internal retirement plan, the economic compensation before the formal
retirement date is attributable to the termination benefits. The salaries and social insurance payment to be
paid for the early-retired employee are recognized as one-off expense in profit or loss for the current period
between the date when the employee stops rendering service and formal retirement. Economic compensation
after the date of formal retirement (such as normal pension) shall be accounted for as post-employment
benefits.
(5) Other long-term employee benefits

Other long-term employee benefits provided by the Group to the employees satisfied the conditions for
classifying as a defined contribution plan; those benefits shall be accounted for in accordance with the above
requirements relating to defined contribution plan. When the benefits satisfied a defined benefit plan, it shall
be accounted for in accordance with the above requirements relating to defined benefit plan, but the
movement of net liabilities or assets in re-measurement of defined benefit plan shall be recorded in profit or
loss for the current period or cost of relevant assets.

25. Provisions

Aprovisionisrecognisedforanobligationrelatedtoacontingencyifallthefollowingconditionsaresatisfied:
(1) The Group has a present obligation;

(2) It is probable that an outflow of economic benefits will be required to settle the obligation; and

(3) The amount of the obligation can be estimated reliably.

A provision is initially measured at the best estimate of the expenditure required to settle the related present
obligation. Factors pertaining to a contingency such as the risks, uncertainties and time value of money are
taken into account as a whole in reaching the best estimate. Where the effect of the time value of money is
material, provisions are determined by discounting the expected future cash flows. The Group reviews the
carrying amount of a provision at the balance sheet date and adjusts the carrying amount to the current best
estimate.

If all or part of the expenditure necessary for settling the provision is expected to be compensated by a third
party, the amount of compensation is separately recognized as an asset when it is basically certain to be
received. The recognized compensation amount shall not exceed the carrying amount of the provision.

26. Share-based Payment and Equity Instruments

(1) Types of share-based payment

The Group's share-based payment is classified into equity-settled share-based payment and cash-settled
share-based payment.

(2) Recognition method of the fair value of equity instruments

If an active market exists for the equity instruments such as stock option granted by the Group, the fair value
of the equity instrument shall be determined according to the quoted price in the active market. If an active
market does not exist, the fair value of the equity instrument shall be determined by using the option pricing
model. The Group considers the following factors when selecting the model: A) the exercise price of the
option; B) the validity period of the option; C) current price of underlying stock; D) expected volatility of
the stock price; E) expected dividend of the stock; F) risk-free interest rate within the validity period of the
option.


(3) Basis for the best estimate of exercisable equity instruments

At each balance sheet date of the waiting period, the Group revises the number of equity instruments that
willultimatelyvestbasedonthebestestimateofthelatestnumberofeligibleemployeesandothersubsequent
information. On vesting date, the number of expected vested equity instruments should be agreed with the
actual number vested.

(4)Accounting treatments for the implementation, modification and termination of share-based payment plans
Equity-settled share-based payment is measured by the fair value of the equities instruments granted to
employees. As to an equity-settled share-based payment that the right may be exercised immediately after
the grant, the fair value of the equity instruments shall, on the date of the grant, be charged to the relevant
cost or expense and the capital reserves shall be adjusted accordingly. As to an equity-settled share-based
payment that the right cannot be exercised until the vesting period comes to an end or until the prescribed
performance conditions are met, then on each balance sheet date within the vesting period, the services
obtained in the current period shall, based on the best estimate of the number of vested equity instruments,
be charged to the relevant costs or expenses at the fair value of the equities instruments on the date of the
grant, and the capital reserves shall be adjusted accordingly. After the vesting date, the confirmed related
costs or expenses and the total owner's equity will not be adjusted.

Cash-settled share-based payments is measured by the fair value of liability undertaken by the Group at the
mean of share or other equityinstruments.As to a cash-settled share-based paymentinstruments thatthe right
may be exercised immediately after the grant, the fair value of the liability undertaken by the Group shall, on
the date of the grant, be charged to the relevant costs or expenses, and the liabilities shall be increased
accordingly. As to a cash-settled share-based payment that the right may not be exercised until the vesting
period comes to an end or until the specified performance conditions are met, on each balance sheet date with
in the vesting period, the services obtained in the current period shall, based on the best estimate of the
information about the vesting conditions, be charged to the relevant costs or expenses and the corresponding
liabilities at the fair value of the liability undertaken by the Group. On each balance sheet date and settlement
date before the settlement of related liabilities, the fair value of liabilities is re-measured, and the changes are
included in the current profit and loss.

When the Group modifies the share-based payment plan, if the fair value of the distributed equity instrument
is increased due to the modification, the increment of the obtained services shall be recognized accordingly;
if the quantity of the distributed equity instrument is increased due to the modification, the increment of
obtained services shall be recognized accordingly. The increase in the fair value of equity instruments refers
to the difference between the fair value of equity instruments before and after modification on the
modification date. If the modification decreases the fair value of equity instruments granted or adopt other
terms and conditions unfavorable to the employees, the accounting treatment for the services obtained will
continue, and be deemed that the change has never occurred unless the Group cancelled some or all of the
granted equity instruments.

If the granted equity instruments are canceled or settled within the vesting period (except that canceled due
to failure to meet the vesting conditions), the Group shall regard the canceling or settlement as acceleration
of the vest, and immediately recognize the amount supposed to be recognized within the residual vesting
period in the current profit and loss and capital reserves. If employees or other parties can choose to meet the
conditions of unfeasible rights but fail to meet them within the waiting period, the Group will take it as the
cancellation of the instrument for granting rights and interests.

27. Other Financial Instruments such as Preference Shares, Perpetual Bonds

(1) Distinction between financial liabilities and equity instruments

The Group classifies the financial instrument or its components as a financial asset, financial liabilities or
equity instruments at initial recognition, according to the contract terms of the financial instrument issued
and its economic substance, not only in legal form, and in conjunction with the definition of financial assets,

financial liabilities and equity instruments.

(2)Accounting treatment for preference shares, perpetual bonds

The Group initially recognizes and measures financial instrument in accordance with the standards of
financial instrument. On the basis of the category of financial instrument issued, interest is accrued or
dividends are paid ateach balance sheetdate according to the relevantaccounting standards. For the financial
instrument classified as equity instrument, the interest or dividend paid is treated as profit distribution of the
Group, and the repurchase and cancellation of the financial instrument is treated as the movement in equity.
For the financial instrument classified as financial liability, the interest or dividend paid is treated as
borrowing cost, and gains or losses arising from the repurchase or redemption of financial instrument is
recognized in profit or loss for the current period.

When the Group issues financial instrument, the relevant transaction costs such as handling charges and
commission are recognized the initial amount of issued instrument if it is classified as debt instrument
measured at amortized cost. The transaction costs are deducted against equity if it is classified as equity
instrument.
28. Revenue
(1) General principles

The Group recognizes the revenue when it satisfied its performance obligation stated in the contract, that is,
when the control of the good or service is transferred to the customer.

If the contract comprises two or more performance obligations, the Group allocates the transaction price to
each performance obligation based on the proportion of sales price for the goods or service committed by
each performance obligation at the commencement date of the contract. Revenue is recognized the allocated
transaction for each performance obligation.

If one of the following conditions is satisfied, the Group satisfies its performance obligation over time;
Otherwise, the performance obligation is satisfied at a point in time.

① The customer simultaneously receives and consumes the economic benefits provided by the Group's
performance as the Group's performs its obligation;

② The Group’s performance produces good that the customer control as the good is created;

③ The Group’s performance produces goods without an alternative use to the Group and the Group has an
enforceable right to payment for performance completed to date.

Forperformanceobligationsatisfiedovertime,theGroupshallrecognizetherevenueovertimebymeasuring
theprogresstowardcompletesatisfactionofthatperformanceobligation.Iftheprogresscannotbereasonably
measured and the Group is expected to be compensated for the costs already incurred, revenue shall be
recognized to the extent of the costs that have been incurred until the progress can be reasonably measured.
For performance obligation satisfied at a point in time, the Group recognizes revenue at the time when the
control of good or service is transferred to the customer.The Group considers the following indications when
determining whether the control of good or service is transferred to the customer:


① The Group has a present right to payment for good or service, i.e. the customer has a present payment
obligation for the good

② The Group has transferred the legal title of the good to the customer, i.e. the customer has the legal title.
③ The Group has transferred the physical good to the customer, i.e. the customer has physical possession.
④ The Group has transferred the significant risks and rewards of ownership of the good to the customer,
i.e., the customer has the significant risks and rewards of ownership.

⑤ The customer has accepted the good.

⑥ Other indications that the customer has the control of the good.

Contract asset is recognized when the Group has the right to consideration in exchange for goods or services
that the Group has transferred to ta customer (such right is conditional other than the passage of time).
Impairment of contract assets is calculated based on the expected credit losses (please refer to Note III. 10
(6)). The Group presented the right to consideration is unconditional if only the passage of time is required
before payment of that consideration is due, as accounts receivable.

Contract assets and contract liabilities under the same contract shall be presented as a net amount. The net
amount is presented as Contract assets or Other non-current assets according to liquidity if it has a debit
balance. While the net amount is presented as Contract liabilities or Other non-current liabilities according
to liquidity if it has a credit balance.

(2) Specific methods

The specific recognition method for the Group's sales of goods is as follows:

The Group recognizes the revenue when the customers collect the goods by door or the goods have been
delivered to the designated location, and the customers accept the goods and obtain the control of goods.
For the sale of goods with sales return clauses, revenue recognition is limited to extent of cumulative
recognized revenue that is unlikely to be materially reversed. The Group recognizes a liability according to
the expected refund. The carrying amount of the returned goods less than the estimated cost to recover the
goods (including the decline in value for the returned goods) is recognized as an asset at the same time.

29. Contract costs

Contract costs include the incremental costs of obtaining a contract and costs to fulfill a contract.

Incremental costs of obtaining a contract are the cost only incurred if the contract is obtained (i.e.
commission). The Group expects to recover these costs and recognized as an asset of incremental costs of
obtaining a contract. Other expenditures of obtaining a contract except for the incremental costs expected to
be recovered, are recognized in profit or loss for the current period when incurred.

The Group recognizes the costs to fulfill a contract as an asset if the costs are incurred for fulfilling the
performance obligation of the contract, do not fall within the scope of other accounting standards, such as
inventory, and meet the following criteria:

① The costs directly related to a contract or an anticipated contract that can specifically identify, including

direct labor, direct materials, manufacturing overheads (or similar expenses), costs explicitly chargeable
to the customer and other costs incurred solely for the contract;

② The costs generate or enhance resources of Group that will be used in satisfying performance obligations
in the future.

③ The cost is expected to be recovered.

Assets recognized from costs of obtaining a contact and costs to fulfill a contract (hereinafter referred to as
"assets related to contract cost") shall be amortized in the profit or loss for the current period on the same
basis as revenue recognition of goods or services related to such assets. If the amortization period does not
exceed one year, it is recognized in profit or loss for the current period when it occurs.

When the carrying amount of the assets related to the contract cost is greater than the difference between the
following two items. The Group shall make provision for impairment of the excess amount and recognize as
impairment loss:

① The remaining consideration that the Group is expected to be received as a result of the transfer of the
goods or services related to the asset;

② Costs probably incurred for transferring of the relevant goods or services

When the costs to fulfill the contract is recognized as assets with an amortization period less than one year
or one normal business cycle at initial measurement, it is presented as Inventories. It is presented as Other
non-current assets if the amortization period is over one year or one normal business cycle at initial
measurement.

When the costs of obtaining a contact is recognized as assets with an amortization period less than one year
or one normal business cycle at initial measurement, it is presented as Other current assets. It is presented as
Other non-current assets if the amortization period is over one year or one normal business cycle at initial
measurement.
30. Government grants

Agovernment grant is recognized when there is reasonable assurance that the grant will be received and that
the Group will comply with the conditions attaching to the grant.

If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received
or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fair
value. If fair value cannot be reliably determined, it is measured at a nominal amount of RMB 1.

Government grants related to assets are grants whose primarycondition is that the Group qualifying for them
should purchase, construct or otherwise acquire long-term assets. Government grants related to income are
grants other than those related to assets.

For government grants with unspecified purpose, the amount of grants used to form a long-term asset is
regarded as government grants related to an asset, the remaining amount of grants is regarded as government
grants related to income. If it is not possible to distinguish, the amount of grants is treated as government
grants related to income.

Agovernment grant related to an asset is offset against the carrying amount of the related asset, or recognized
as deferred income and amortized to profit or loss over the useful life of the related asset on a reasonable and
systematic manner.Agrant that compensates the Group for expenses or losses already incurred is recognized
in profit or loss or offset against related expenses directly. A grant that compensates the Group for expenses
or losses to be incurred in the future is recognized as deferred income, and included in profit or loss or offset
against related expenses in the periods in which the expenses or losses are recognized. Government grants
measured at nominal amounts are directly recognized in the profit or loss for the current period. The Group
applies the same method to the same or similar government grant.


A grant related to ordinary activities is recognized as other income or offset against related expenses based
on the economic substance.Agrant not related to ordinary activities is recognized as non-operating income.
For repayment of a government grant, if the government grant is offset against the carrying amount of the
related asset at the time of recognition, the carrying amount of the related asset shall be adjusted. If there is
related deferred income, the repayment is offset against the carrying amount of the deferred income, and any
excess is recognized in profit or loss for the current period. Otherwise, the repayment is recognized
immediately in profit or loss for the current period.

If the government directly appropriates the interest subsidy to the lending bank, the Group recognized the
loan as the amount received, and interest expense is calculated using the loan principal and policy-related
preferentialinterestrate. If the governmentdirectlyappropriates the interest subsidyto theGroup,the interest
subsidy is offset against interest expense.

31. Deferred tax assets and deferred tax liabilities

Income tax comprises of current tax and deferred tax. Current tax and deferred tax are both recognized in
current profit or loss except for the adjusted goodwill arising from business combination or the deferred tax
related to the transactions or events directly included in the owner's equity.

Temporary differences arising from the difference between the carrying amount of an asset or liability and
its tax base are recognized as deferred tax using the balance sheet liability method.

All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred in
the following transactions:

(1) initial recognition of goodwill, or the initial recognition of an asset or liability in a transaction that is not
a business combination and neither affects the accounting profit nor taxable profit;

(2) taxable temporary differences associated with investments in the Group, associates and joint ventures,
and the Group is able to control the timing of the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future.

The Group recognizes a deferred tax asset for the deductible temporary differences, deductible losses and tax
credits carried forward to subsequent periods, to the extent that it is probable that future taxable profits will
be available againstwhich deductible temporarydifferences, deductible losses and tax credits can be utilized,
except for those incurred in the following transactions:

(1) a transaction that is not a business combination and neither affects the accounting profit nor taxable

profit;

(2) deductibletemporarydifferencesassociatedwithinvestmentsintheGroup,associatesandjointventures,
the corresponding deferred tax asset is recognized when both of the following conditions are satisfied: it is
probable that the temporary difference will reverse in the foreseeable future; and it is probable that taxable
profits will be available in the future against which the temporary difference can be utilized.

At the balance sheet date, the Group measures the deferred tax assets and deferred tax liabilities according
to the applicable tax rate during the period when the assets are expected to be recovered or the liabilities are
settled, and reflect the income tax impact of the expected asset recovery or liability settlement method on the
balance sheet date.

At the balance sheet date, the Group reviews the carrying amount of any deferred tax asset. If it is probable
that sufficient taxable profits will not be available in future periods to allow the benefit of the deferred tax
asset to be utilized, the carrying amount of the deferred tax asset is reduced. Any such reduction in amount
is reversed to the extent that it becomes probable that sufficient taxable profits will be available.

32. Leases
(1) Identification of leases

At inception of a contract, the Group, as a lessee or a lessor, shall assess whether the customer under the
contract has the right to obtain substantially all of the economic benefits from use of the identified asset
during the period of use and has to right to direct the use of the identified asset during the period of use. The
Group considers the contract to be a lease or to include a lease if one of the parties to the contract conveys
the right to control the use of one or more identified assets for a certain period of time in exchange for
consideration.

(2) The Group acts as the lessee

At the commencement date, the Group recognizes the right-of-use assets and lease liabilities for all leases,
except for short-term leases and leases of low value assets that are accounted for according to the simplified
method.

For the accounting policy of the right-of-use assets, see Note III.33.

Lease liabilities are initially measured at the present value of the outstanding lease payments at the
commencement date of the lease using the interest rate implicit in the lease. If the interest rate implicit in the
lease cannot be determined, the incremental borrowing rate shall be used as the discount rate. The lease
payments include: fixed payments and in-substance fixed payments; if there are lease incentives, the relevant
amount of lease incentives shall be deducted; variable lease payments depending on an index or a rate; the
exercise price of the option provided that the lessee is reasonably certain that the option will be exercised;
the amount to be paid to exercise the option to terminate the lease if the lease term reflects that the lessee
will exercise the option to terminate the lease; and the amount expected to be payable based on the residual
value of the security provided by the lessee. The interest expense of the lease liability in each period of the
lease term shall be calculated in accordance with the fixed periodic interest rate and recorded into the profit
or loss of the current period. The variable lease payment not included in the measurement of lease liabilities
shall be recorded into the current profit or loss when actually incurred.

Short-term leases

A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less, except
for a lease that contains a purchase option.

The Group records the lease payment amount of short-term lease into the cost of relevant assets or current
profit or loss in each period of the lease term according to the straight-line method

Leases of Low-value assets

Leases of low value assets refer to lease of a single leased asset whose value is less than RMB40, 000 when
it is a brand-new asset.

TheGroup includes theleasepaymentof the low-value asset lease into the costof therelevantasset or current
profit or loss in each period of the lease term according to the straight-line method

For low-value asset leases, the Group chooses to apply the above simplified treatment depending on the
specific circumstances of each lease.

Lease modifications

A lessee shall account for a lease modification as a separate lease if both: (i) the lease modifies the scope of
the lease by adding the right to use one or more underlying assets; and (ii) the increase in consideration must
be commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that
stand-alone price to reflect the circumstances of the particular contract.


If a lease modification is not accounted for as a separate lease, at the effective date of the lease modification,
the Group reallocates the consideration in the modified lease, redetermines the lease term, and remeasures
the present value of lease liability according to the revised lease payments and revised discount rate.

If a lease modification results in a reduction in the scope of the lease or a shortening of the lease term, the
Group reduces the carrying amount of the right-of-use asset accordingly and recognizes the gain or loss
related to partial termination or full termination of the lease in profit or loss for the current period.

If all other lease modifications result in the remeasurement of the lease liabilities, the Group makes a
corresponding adjustment to the carrying amount of right-of-use asset.

(3) The Group acts as the lessor

When the Group acts as the lessor, the leases that substantially transfer all the risks and rewards related to
the ownership of the assets are recognized as finance leases, and other leases other than finance leases are
recognized as operating leases.

Finance leases

In the case of finance leases, the Group takes the net investments in the lease as the carrying amounts of
finance lease receivables at the commencement date, and the net lease investments are the sum of the
unguaranteed residual value and the present value of the lease payments receivable at the commencement
date discounted at the implicit interest rate. The Group, as the lessor, calculates and recognizes interest
income for each period of the lease term at a fixed periodic rate. The variable lease payments obtained by the
Group as the lessor and not included in the measurement of the net lease investments shall be recorded into
the current profit or loss when actually incurred.

The derecognition and impairment of finance lease receivable shall be accounted for in accordance with the
provisions of Accounting Standards for Business Enterprises No. 22 - "Recognition and Measurement of
Financial Instruments" and Accounting Standards for Business Enterprises No. 23 - "Transfer of Financial
Assets".

Operating lease

For the rent in the operating lease, the Group shall recognize the profit or loss of the current period in
accordance with the straight-line method during each period of thelease term.The initialdirectcosts incurred
in connection with the operating lease shall be capitalized, allocated on the same basis as the recognition of
rental income during the lease term and recorded into the current profit or loss in installments. The variable
lease payments obtained in connection with the operating lease and not included in the lease payments shall
be recorded into the current profit or loss when actually incurred.

Lease modifications

Except for contract modifications applying the simplified method under the circumstances specified in
Caikuai [2022] No. 13, if an operating lease is modified, the Group will treat it as a new lease for accounting
treatment from the effective date of the modification, and the amount of lease payments received in advance
or receivable related to the lease before the modification will be regarded as the amount of new lease
payments.

Except for contract modifications applying the simplified method under the circumstances specified in
Caikuai [2022] No. 13, the Group will treat the finance lease modification as a separate lease if the following
conditions are met: ① the modification increases the scope of the lease by adding the right to use one or
more underlying assets; and ② the consideration for the lease increases by an amount commensurate with
the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to
reflect the circumstances of the contract.

Ifthefinanceleasemodificationisnotaccountedforasaseparatelease,theGroupwilldealwiththemodified

lease under the following circumstances: ① If the modification takes effect on the commencement date of
the lease, the lease will be classified as an operating lease, and the Group will treat it as a new lease from the
effective date of the lease modification, and take the net investment in lease before the effective date of the
lease modification as the carrying amount of the leased asset; ② If the modification takes effect on the
commencement date of the lease, the lease will be classified as a finance lease, and the Group will conduct
accounting treatment in accordance with the provisions of the “Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments” concerning the modification
or renegotiation of the contract.

(4) Subleases

When the Group acts as a sublease lessor, it classifies the sublease based on the right-of-use assets generated
from the original lease. If the original lease is a short-term lease and the Group uses the simplified method
to account for the original lease, the sublease shall be classified as an operating lease.

(5) Rent concessions accounted for according to provisions in Caikuai [2022] No. 13

For rent concessions such as rent remission or deferred payment reached between the lessee and the lessor
on existing lease contracts accounted for according to provisions in Caikuai [2022] No. 13, the lease
consideration after the concession is reduced or basically unchanged compared with that before the
concession. In addition, the simplified method is adopted for leases that are determined to have no significant
changes in other terms and conditions of the leases after comprehensive consideration of qualitative and
quantitative factors.

The Group does not evaluate whether a lease modification has occurred.

When the Group is the lessee, the Group will continue to calculate the interest expense of the lease liability
at the same discount rate as before the concession and record it into the current profit or loss, and continue
to carry out depreciation and other subsequent measurements on the right-of-use assets in the same way as
before the concession. In case of rent remission, the Group will take the remitted rent as the variable lease
payment amount. When the original rent payment obligation is terminated by reaching a concession
agreement, the Group will deduct the relevant asset cost or expense by the amount discounted at the
undiscounted or pre-concession discount rate, and adjust the lease liability accordingly. In case of deferred
rent payment, the Group shall write off the lease liabilities confirmed earlier when actually paying the rent.
For short-term leases and leases of low-value assets accounted for according to the simplified method, the
Group continues to record the rent under the original contract as the cost or expense of the relevant assets in
the same manner as before the concession. In case of rent remission or reduction, the Group shall treat the
remission or reduction of rent as variable lease payment and write off the cost or expense of relevant assets
during the remission or reduction period. If the rent is delayed in payment, the Group shall recognize the rent
payable during the original payment period as the payable amount, and deduct the payable amount confirmed
earlier when the actual payment is made.

When the Group acts as the lessor, for the operating lease, the Group continues to recognize the original
contractrentasleaseincome inthesamewayasbeforetheconcession.Incaseofrentconcessionorreduction,
the Group shall treat the remission or reduction as variable lease payment and deduct the lease income during
the remission or reduction period. If the rent collection is delayed, the Group will recognize the rent collected
as receivable during the original collection period, and deduct the receivable recognised in the earlier period
when the rent is actually received. For finance leases, the Group continues to calculate interest and recognize
it as lease income at the same discount rate as before the concession. In case of rent remission or reduction,
the Group will take the rent remitted or reduced as the variable lease payment amount. When the right to
charge the original rent is waived by reaching a concession agreement, the Group will deduct the original
recognised lease income by the amount of discount before the concession or at the discount rate before the
concession, and record the insufficient write-off into investment income, and adjust the finance lease
receivable accordingly. In case of delayed payment of rent, the Group shall write off the finance lease
receivable recognised in the earlier period when it actually receives the rent.

33. Right-of-use assets


(1) Criteria for recognition of right-of-use assets

Aright-of-use asset represents the right of the Group, as a lessee, to utilize the leased assets over the duration
of an agreed-upon lease term.

On the commencement date, the right-of-use assets shall be initially measured at cost. The cost includes: the
initial measurement of the lease liability; for the amount of lease payments paid on or before the
commencement date of the lease term, if there is a lease incentive, the relevant amount of lease incentive
already enjoyed will be deducted; initial direct costs incurred by the Group as the lessee; the costs which the
Group, as the lessee, expects to incur in dismantling and removing the leased assets, restoring the premises
on which the leased assets are located or restoring the leased assets to the state agreed in the lease terms. The
Group, as the lessee, shall recognize and measure the costs of demolition and restoration in accordance with
the Accounting Standards for Business Enterprises No. 13 - “Contingencies”. Subsequent adjustments are
made for any remeasurement of the lease liability.

(2) Depreciation method of the right-of-use assets

The Group uses the straight line method of depreciation. Where the Group, as the lessee, can reasonably
determine that it obtains the ownership of the leased assets upon expiration of the lease term, depreciation
shall be accrued over the remaining useful life of the leased assets. Where it is impossible to reasonably
determine that the ownership of the leased asset can be acquired at the expiration of the lease term,
depreciation shall be accrued in the shorter period between the lease term and the remaining useful life of the
leased asset.

(3) See Note III. 22 for the impairment test method of the right-of-use assets and the loss allowance.

34. Repurchase Shares

WhentheGrouprepurchaseitsownshares,thosesharesaretreatedastreasurystockbeforetheyarecancelled
or transferred. All the expenditures relating to the repurchased shares are recorded as the cost of treasury
stock. The consideration and transaction costs paid in share repurchase reduce the shareholders’ equity. No
profit or loss is recognized when repurchasing, transferring or canceling the Group's shares.

When the treasury stock is transferred, the difference between the actual amount received and the carrying
amount of treasury stock is recognized in capital reserve. Any excess is recognized in surplus reserve and
retained earnings. When the treasury stock is cancelled, the share capital should be reduced to the extent of
the total par value and the number of shares cancelled. The difference between the carrying amount and par
value of the treasure stock cancelled is recognized in capital reserve. Any excess is recognized in surplus
reserve and retained earnings.

35. Restricted Stock

Under the share incentive plan, the Group grants restricted share to its employees, and the employees
subscribe the share first. If the unlocking conditions specified in the share incentive plan are not met
subsequently, the Group will repurchase the shares at the agreed price. When the procedures of the increase
in capital completed such as registration in accordance with the relevant regulations, the Group recognizes
the share capital and capital reserve (share premium) according to the subscription payment received from
the employees on the date of grant. Treasurystock and other payables relating to the obligation of repurchase
are recognized accordingly.
36. HedgeAccounting

Atthe inception of a hedge relationship, the Group formallydesignates and documents the hedge relationship
to which the Group wishes to apply hedge accounting, the risk management objective and its strategy for
undertaking the hedge.The documentation includes identification of the hedging instrument, the hedged item
or transaction, the nature of the risk being hedged and how the Group will assess the effectiveness of the
hedging instrument.


The Group assesses an ongoing basis to determine that the hedging instrument actually have been highly
effective throughout the financial reporting periods for which they were designated. The hedge relationship
is ceased if it is unsatisfactory. Hedging accounting should meet the following requirements for the
effectiveness of hedging:

① There is an economic relationship between hedged items and hedging instruments.

② The impact of credit risk does not dominate in the change of value caused by the economic relationship
between hedged items and hedging instruments.

③ The hedging ratio of the hedging relationship should be equal to the ratio of the number of hedged items
actually hedged by the enterprise to the actual number of corresponding hedging instruments. It should not
reflect the imbalance of the relative weight of the hedged item and the hedging instrument. This imbalance
will cause the hedge to be invalid and may give accounting results that are inconsistent with objectives of the
hedge accounting.

The Group ceases the use of hedge accounting if one of the following situation is exist:

① The hedging relationship is no longer meets the risk management objectives due to changes in risk
management objectives.

② The hedging instrument is expired, sold, the contract is terminated or has been exercised.

③ The economic relationship between the hedged item and the hedging instrument is no longer existed, or
the impact of credit risk does not dominate in the change of value caused by the economic relationship
between hedged items and hedging instruments.

④ The hedging relationship is no longer satisfied other conditions for using hedging accounting.

Fair value hedge

Fair value hedge refers to a hedge of the exposure to changes in fair value of a recognized asset or liability
or an unrecognized firm commitment, or a component of any such item, that is attributable to a particular
risk. This change in fair value would affect the Group’s profit or loss, or other comprehensive income.

Any gain or loss arising from fair value hedge is recognized in profit or loss for the current period. Gain or
loss of hedged item arising from the exposure of risk is recognized in profit or loss for the current period,
and adjusted the carrying amount of hedged items not measure at fair value accordingly.

If the hedged item is a financial instrument (or its component) measured at amortized cost, any adjustment
to the carrying amount of the hedged item is amortized to profit or loss. The amortization is based on a
recalculated effective interest rate at the date that amortization begins.

When unrecognized firmcommitment is designated as a hedged item, the cumulative change in the fair value
of the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding
gain or loss recognized in profit or loss for the current period. When an asset is obtained or a liability is
committed through the fulfillment of confirmed commitment, the initial amount of such asset or liability is
adjusted according to the cumulative change in the fair value of recognized hedged item.

Cash flow hedging

Cash flow hedge refers to a hedge of exposure from cash flow changes. This variability in cash flows is
attributable to a particular risk associated with a recognized asset or liability or a highly probably forecast
transaction and can affect profit or loss.

The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is
recognized as cash flow hedging reserve in other comprehensive income.Any remaining gain or loss on the

hedging instrument that is hedged ineffective is recognized in profit or loss for the current period.

For cash flow hedging, when the hedged item is an expected transaction, and a non-financial asset or non-
financial liability arising from the expected transaction, or fair value hedge accounting is applicable to a
commitment arising the expected transaction of non-financial assets or non-financial liability, the Group
transfers the cash flow hedging reserve previously recognized in the other comprehensive income to the
initial recognition amount of such asset or liability.

For cash flow hedges that do not fall into the above situations, the Group transfers cash flow hedging reserve
previously recognized in the other comprehensive income to profit or loss for the period when the profit or
loss is impacted by the expected cash flow being hedged.

If the cash flow hedging reserve recognized in the other comprehensive income is a loss, the entire or part of
the loss is not expected to be recovered in the future accounting period, the Group transfers the unrecovered
portion from the other comprehensive income to profit or loss.

When the Group ceases the use of hedging accounting for cash flow hedges, the cumulative cash flow
hedgingreserve recognized in theother comprehensive income is retained if thehedged cashflowisexpected
to occur in the future. The cash flow hedging reserve is treated in accordance with the accounting policies of
cash flow hedging mentioned above when the expected transaction has occurred. The cumulative cash flow
hedging reserve recognized in the other comprehensive income is transferred to profit or loss for the current
period if the hedged cash flow is not expected to be occurred in the future. If the hedged cash flow is no
longer probable to be occurred in the future but it may still be expected to be occurred, the cumulative cash
flowhedging reserve recognized in the other comprehensive income is retained until the expected transaction
has occurred, it is then treated in accordance with the accounting policies of cash flow hedging mentioned
above.

37. Significant accounting judgments and estimates

The Group assesses the significant accounting estimates and key assumptions on an ongoing basis, based
on the historical experience and other factors, including reasonable expectation of future events.

It is probable that the significant adjustment risk to the carrying amount of assets and liability in the next
accounting period will arise from the following significant accounting judgments and key assumptions:

Measurement of expected credit losses on accounts receivable

The Group calculates the expected credit loss of accounts receivable through the default risk exposure of
accounts receivable and the expected credit loss rate of accounts receivable. The Group determines the
expected credit loss rate based on the probability and loss rate of default. When determining the expected
credit loss rate, the Group uses internal historical credit loss experience and other data, and adjusts the
historical data in conjunction with current conditions and forward-looking information. When considering
forward-looking information, the indicators used by the Group include the risk of economic downturn,
changes in the external market environment, technological environment and customer situation. The Group
regularly monitors and reviews assumptions related to the calculation of expected credit losses.

Impairment of goodwill

The Group assesses the impairment of goodwill at least once a year. The Group shall evaluate the value in
use for the cash-generating units to which goodwill has been allocated. When assessing the value in use, the
Group requires to estimate the expected future cash flows from the cash-generating unit and select an
appropriate discount rate to calculate the present value.

Deferred tax asset

To the extent that there is likely that there will be sufficient profits to offset losses, deferred tax assets should
be recognized for all unutilized tax losses. The management requires using many judgments to estimate the
time and amount of future taxable profits, in conjunction with tax planning strategies, to determine the

amount of deferred tax assets that should be recognized.

38. Changes in significant accounting policies, accounting estimates and correction of errors in prior periods

(1) Significant changes in accounting policies

① Rent concessions accounted for according to provisions in Caikuai [2022] No. 13

In May 2022, the Ministry of Finance issued Caikuai [2022] No. 13. For concessions of the lease payments
payable after June 30, 2022, the lessee and the lessor can continue to choose the simplified method regulated
by Caikuai [2020] No. 10.

If the Group has adopted the simplified method for lease contracts that meet the conditions before the
adjustment of the scope of application, the simplified method will continue to be adopted for similar lease
contracts that meet the conditions after the adjustment of the scope of application. During the period of
remission or when the relevant rights and obligations are relieved and waived through the concession
agreement, the relevant rent concession shall be included into profit or loss.

② Interpretation ofAccounting Standards for Business Enterprises No. 15

The Ministry of Finance issued Interpretation of Accounting Standards for Business Enterprises No. 15
(Caikuai [2021] No.35) (hereinafter referred to as Interpretation No. 15) in December 2021.

Interpretation No. 15 stipulates that when determing a onerous contract, the cost of an enterprise to perform
the contract includes the incremental cost of performing the contract and the allocation amount of other costs
directly related to the performance of the contract. Among them, the incremental cost of performing the
contract includes direct labor, direct materials, etc; the allocation amount of other costs directly related to the
performance of the contract includes the allocation amount of depreciation expenses of fixed assets used to
perform the contract, etc. The regulation came into effect on January 1, 2022. Enterprises shall implement
the regulation for contracts that have not fulfilled all obligations by January 1, 2022. Retained earnings and
otherrelatedfinancialstatementsitemsatthebeginningoftheyearshallbeadjustedbythecumulativeimpact,
adjustments shall not be made for the previous comparative financial statements data.

According to the provisions of Interpretation No. 15, if an enterprise sells the products or by-products
produced before the fixed asset reaches its intended use or during the research and development process
(hereinafter referred to as the trial sales), it shall, account for the transactions in accordance with the
provisions of Accounting Standards for Business Enterprises No. 14 - Revenue and Accounting Standards
for Business Enterprises No. 1 - Inventory, etc.

The regulation came into effect on January 1, 2022, and enterprises should retroactively adjust the trial sales
that occurred between the beginning of the earliest period for the presentation of financial statements and
January 1, 2022.

The effect of the implementation of the above accounting treatment for trial sales on the consolidated balance
sheet at December 31, 2021 and the consolidated income statement for the year 2021 is as follows:

Consolidated items Before adjustment Adjustment After adjustment

Inventories 8,922,903,666.78 47,284,191.49 8,970,187,858.27

Deferred tax assets 734,900,665.63 -766,589.62 734,134,076.01

Deferred tax liabilities 178,262,911.66 6,326,039.10 184,588,950.76

Surplus reserve 745,996,406.06 434,400.79 746,430,806.85

Retained earnings 7,854,254,002.84 39,757,161.98 7,894,011,164.82

Operating income 85,998,559,748.78 93,401,790.35 86,091,961,539.13


Consolidated items Before adjustment Adjustment After adjustment

Operating costs 78,698,777,631.10 94,092,705.67 78,792,870,336.77

Research and 652,995,298.85 -47,975,106.81 605,020,192.04
development expenses

Income tax expenses 650,679,589.05 7,092,628.72 657,772,217.77

Company items Before adjustment Adjustment After adjustment

Inventories 46,967,892.60 5,110,597.49 52,078,490.09

Deferred tax assets 243,534,161.40 -766,589.62 242,767,571.78

Surplus reserve 745,996,406.06 434,400.79 746,430,806.85

Retained earnings 2,991,262,794.10 3,909,607.08 2,995,172,401.18

Operating income 2,024,047,232.85 15,922,165.69 2,039,969,398.54

Operating costs 866,481,873.15 26,351,056.64 892,832,929.79

Research and 204,111,930.64 -15,539,488.44 188,572,442.20
development expenses

Income tax expenses 55,252,589.04 766,589.62 56,019,178.66

The implementation of the accounting treatment of the above has no material impact on the financial position
and financial performance of the Group other than the list items.

③ Interpretation ofAccounting Standards for Business Enterprises No. 16

The Ministry of Finance issued the Interpretation of Accounting Standards for Business Enterprises No. 16
(Cai Kuai [2022] No. 31) (hereinafter referred to as "Interpretation No. 16") in November 2022.

Interpretation No. 16 stipulates that for financial instruments such as perpetual bonds, which are classified
as equity instruments, an enterprise should recognize the income tax impact related to dividends when
recognizing dividends payable. For transactions or events where the distributed profit is derived from
previous profit or loss, the income tax impact of the dividends should be included into current profit or loss;
if the distributed profit is derived from transactions or events previously recognized in the owners' equity,
the income tax impact of the dividends shall be included into the owners' equity item.

For financial instruments classified as equity instruments, if the Group recognizes the dividends payable in
the current year, the income tax impact is accounted for in accordance with the provisions of Interpretation
No. 16 above. For transactions or events that occurred before January 1, 2022 and the financial instruments
have not been derecognized on January 1, 2022, the income tax impact is retroactively adjusted.

Interpretation No. 16 stipulates that if an enterprise modifies the terms and conditions of the cash-settled
share-basedpaymentagreementtomakeitanequity-settledshare-basedpayment,onthedateofmodification,
the enterprise shall measure the equity-settled share-based payment at the fair value on the date of the equity
instrument granted, record the services obtained into the capital reserves, and derecognize the recognized
liabilities of the cash-settled share-based payment on the date of modification, with the difference between
the two included in the current profit or loss. If the waiting period is extended or shortened due to the
modification, the enterprise shall carry out the above accounting treatment according to the modified waiting
period (and the Group has no need to consider accounting method regarding to unfavorable modification).
The adoption of Interpretation No. 16 has no material impact on the Group's financial position and financial
performance.

④ Change of measurement method of cost of inventories


Details of changes in accounting policies Approving procedures Note

(1) Change of policy

Change of measurement method of cost of inventories The company held the 27th

meeting of the 5th Board of

Before change: Inventories are calculated by using weighted Directors and the 22nd meeting

average method. of the 5th Board of Supervisors

After change: If the inventories are managed by batch at the on May 16, 2022 in which the

time of receipt and delivery, these inventories shall be carried participants reviewed and passed

forward at batch cost. Otherwise, inventories are calculated the "Proposal on Changes in

by using weighted average method. Accounting Policies and

Accounting Estimates". The

(2) Reasons for changing independent directors of the

The Group continues to strengthen the refined management company expressed their

of various business sectors, and inventory cost accounting in independent opinions in

some business sectors has nowmet the requirements for batch agreement with the proposal.

accounting management. To improve the level of internal The changes in the company's

management and assessment, shorten the cost settlement accounting policies and

cycle, accelerate market reaction speed, and better provide estimates do not need to be

accurate and detailed data to investors, the Company plans to submitted to the shareholders'

make changes to inventory accounting policies. meeting for review

This accounting policy change does not affect the company's business scope. According to Accounting
Standards for Business Enterprises No. 28- Changes in Accounting Policies, Accounting Estimates, and
Correction of Errors, this change belongs to a change in accounting policies. Due to the fact that the change
in accounting policy is not feasible for determining the cumulative impact of previous periods, the future
application method is adopted. This accounting policy change will not retroactively adjust the disclosed
financial reports and will not have an impact on the Company's previous financial statements. The change of
accounting policy will be implemented from January 1, 2022, anticipating to improve the level of internal
management and assessment, shorten the cost settlement cycle, accelerate market reaction speed, and better
provide accurate and detailed data to investors. However, it will not affect the company's net profit and
owner's equity for 2021 and it will not have a significant impact on the net profit for 2022 either.

(2) Changes in significant accounting estimates

As the Company gradually improves its pig breeding technic and breeding system, the Company’s pig herds
has begun to diversify. Because different pig herds have different production and usage cycles, the company
plans to differentiate depreciation years based on the nature of the pig herds. Meanwhile, to better improve
production efficiency and the quality of self bred piglets, and reduce the cost of pig breeding, the Company
plans to increase the renewal rate of breeding pigs, thereby shortening the production and use cycle of
breeding pigs. In addition, although the cost and the estimated useful life of different breeding pigs varies,
the actualvalue difference atthe time of dispose is not significant.Therefore, the Companyhas changed from
using net residual rate to a unified net residual value.

Accounting estimates before change:

Type Estimated useful life Net residual rate Depreciation method

Breeding pigs 3 years 10% Straight line method

Accounting estimates after change:

Type Estimated useful life Net residual value Depreciation method

Breeding pigs 1.00-2.50 years RMB 1200 per pig Straight line method

This change of accounting estimate will be implemented from January 1, 2022. There is no significant

difference compared to other listed companies in the same industry in accounting estimates for the
depreciation of breeding pigs after the Company’s change.

Due to the changes in accounting estimates mentioned above, the depreciation of the Group's productive
biologicalassetsincreasedbyRMB28.21millioninthecurrentperiod,productivebiologicalassetsincreased
by RMB 23.12 million at the end of the period, and net profit attributable to the parent company decreased
by RMB 5.09 million..

IV. Taxation

1. Main types of taxes and corresponding tax rates

Tax Tax base Statutory tax rate

Value-added tax (VAT) Taxable value-added amount Exemption, 3%, 5%, 6%., 9%, 10%, 13%

Corporate income tax Taxable income Please refer to Note IV. 1 Note

City maintenance and Turnover tax payable 1%, 5%, 7%
construction tax

Educational surcharge Turnover tax payable 3%

Local education surcharge Turnover tax payable 2%

Note: Except for the following tax entity who are subjected to different corporate income tax rates, all other
tax entity within the scope of consolidation uses 25% corporate income tax rate.

Taxpayer Income tax rate (%)

Guangdong Haid Group Co., Limited 15

Enping FengwoAgriculture andAnimal Husbandry Co., Ltd. Exempt from income tax

Yangxi Fengwo EcologicalAgriculture Co., Ltd. Exempt from income tax

YangjiangYangdong FengwoAgriculture andAnimal Husbandry Co., Exempt from income tax
Ltd.

Enping Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Gaozhou Sanhe animal husbandry co., ltd. Exempt from income tax

Yingde Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Hunan Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Hengyang Jisheng Agriculture and Animal Husbandry Development Exempt from income tax
Co., Ltd.

Yueyang YitunAgriculture andAnimal Husbandry Co., Ltd. Exempt from income tax

Guigang City Tantang district Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Pingnan Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Pingguo Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Guiping Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Hengyang Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Hengyang Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Guigang City Gangbei District Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Duyun Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Rongjiang Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Binyang Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax


Taxpayer Income tax rate (%)

Yicheng Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Zixing Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Changning Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Guigang Dongqiang Breeding Co., Ltd. Exempt from income tax

Shaoguan City Zhenjiang District Yitun Ecological Agriculture Co., Exempt from income tax
Ltd.

Shandong Yitun EcologicalAgriculture Co., Ltd. 20

Laizhou ZhizhurenAnimal Husbandry Co., Ltd. Exempt from income tax

Qinzhou Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Feicheng HeruifengAgricultural Technology Co., Ltd. Exempt from income tax

Weifang XuhengAgricultural Technology Co., Ltd. Exempt from income tax

Gaotang Huayu Pig Raising Co., Ltd. Exempt from income tax

Jianong (Lianyungang)Animal Husbandry Technology Co., Ltd. Exempt from income tax

GuizhouAikexin Pig Breeding Co., Ltd. 25、Exempt from income tax

Binyang Heji Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Qinzhou Qinnan Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Huayuan Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Baojing Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Yingde Yitun Pig Breeding Co., Ltd. Exempt from income tax

Hengnan Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Longan Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Youxian Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Wengyuan Yitun Pig Breeding Co., Ltd. Exempt from income tax

Fufeng Yitun EcologicalAgriculture Co., Ltd. 25、Exempt from income tax

Linyou Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Laibin Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

YantaiYitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Yantai ZhizhurenAnimal Husbandry Co., Ltd. Exempt from income tax

Guiyang Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Gaozhou HaiyuanAgriculture Co., Ltd. Exempt from income tax

Ruyuan Yitun Pig Breeding Co., Ltd. Exempt from income tax

Luoding Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Wugang Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax

Hunan Yitun Technology Co., Ltd. Exempt from income tax

Meizhou Yitun Pig Breeding Co., Ltd. Exempt from income tax

Heyuan YitunAgriculture Development Co., Ltd. Exempt from income tax

Yangjiang Peilin Breeding Service Co., Ltd. Exempt from income tax

Weifang Yitun EcologicalAgriculture Co., Ltd. Exempt from income tax


Taxpayer Income tax rate (%)

Guangdong Heyinte Biotechnology Group Co., Ltd. 15

Guangzhou Haishengyuan Biotechnology Co., Ltd. 20

Guangzhou Haiyiyuan Biotechnology Co., Ltd. 20

Shanxi HaidAgriculture andAnimal Husbandry Co., Ltd. Exempt from income tax

Yangling Haid Feed Co., Ltd. 15

Gansu Haid Feed Co., Ltd. 15、Exempt from income tax

Weinan Haid Feed Co., Ltd 20

Hunan Haid Biological Feed Co., Ltd 25、12.5

Liaocheng Haixin Enterprise Management Consulting Co., Ltd. 20

Zoucheng Haiyue Enterprise Management Consulting Co., Ltd. 20

Yinan Haiyue Biotechnology Co., Ltd. 20

Foshan Haipu Feed Co., Ltd. 20

Qingyuan Haibei Biotechnology Co., Ltd. 15

Jiangmen Haid Feed Co., Ltd. 15

Taizhou Haid Biological Feed Co., Ltd. 25、12.5

KINGHILLHOLDINGS PTE.LTD. 17

KINGHILLPTE.LTD. 17

Haid Egypt Co.,Ltd 22.5

Haid EgyptAquatic Co.,Ltd 22.5

KINGHILLRESOURCES PTE.LTD. 17

VINH LONG HAILIANKE BIOTECHNOLOGY CO., LTD Exempt from income tax

KINGHILLAGRI PTE.LTD. 17

PT.HAIDAAGRICULTURE INDONESIA 22

PT.HAIDASURABAYATRADING 22

PT HISENOR TECHNOLOGY INDONESIA 22

HAID FEED BANGLADESH LIMITED 15、10、3

PT HAIDABIOTECHNOLOGY INDONESIA 22

Dachuan Biotechnology Co., Ltd. 27.5

PT HISENOR GENETICS INDONESIA 22

Guangdong Haixingnong Group Co., Ltd. 12.5

Zhanjiang Haixingnong Marine Biotechnology Co., Ltd. 12.5

Zhanjiang Haijingzhou Marine Biotechnology Co., Ltd. 12.5

Hainan Haixingnong Marine Biotechnology Co., Ltd. 12.5

Zhangzhou Haijingzhou Marine Biotechnology Co., Ltd. 12.5

Changyi Haijingzhou Biotechnology Co., Ltd. 12.5

Jingtai Haijingzhou Fishery Technology Co., Ltd. 12.5

Yongji Haijingzhou Fishery Technology Co., Ltd. 20

Yuncheng Haishengyuan Fishery Technology Co., Ltd. 20


Taxpayer Income tax rate (%)

Nantong Haijingzhou Biotechnology Co., Ltd. 12.5

Shanwei Haijingzhou Marine Biotechnology Co., Ltd. 12.5

Guangzhou Hailingxian Food Co., Ltd. 20

Dongying Haijingzhou Biotechnology Co., Ltd. 12.5

Shanwei Haizenong Marine Biotechnology Co., Ltd. 12.5

Guangxi Haijingzhou Marine Biotechnology Co., Ltd. 12.5

Tangshan Haijingzhou Biotechnology Co., Ltd. 12.5

Rongcheng Yandunjiao Fish Meal Co., Ltd 25、Exempt from income tax

Fujian Haisheng Feed Co., Ltd. 25、Exempt from income tax

Zhenyuan Haisheng Protein Feed Co., Ltd. 20

Guangze Haisheng Biotechnology Co., Ltd. 20

Pucheng Haisheng Feed Co., Ltd. 25、Exempt from income tax

Sanya FengmuAgricultural Development Co., Ltd. 15

Xiyu Haisheng (Guangzhou) Supply Chain Co., Ltd. 20

Sihui Haifeng EcologicalAgriculture Co., Ltd. Exempt from income tax

Zhuhai Rongchuan Feed Co., Ltd. 15

Zhuhai RonghaiAquaculture Technology Co., Ltd. 12.5

Haid International Group Limited 8.25、Exempt from income tax

China Haida Feed Group(HK)Limited 16.5、Exempt from income tax

Rickworth Investments Limited Exempt from income tax

Hong Kong Longreat Trading Co.,Limited 16.5

HAID FEED COMPANY LIMITED 15

DONG NAI HAID FARM COMPANY LIMITED 15

PANASIATRADING RESOURCES LIMITED Exempt from income tax

SHENG LONG INTERNATIONALLTD. Exempt from income tax

SHENG LONG BIO-TECH INTERNATIONALCO.,LTD 20、17、15、10、Exempt
from income tax

SHENG LONG BIOTECH (HAI DUONG) INTERNATIONAL CO., 20
LTD

LONG SHENG INTERNATIONALCO.,LTD 20、15

Hisenor International Limited Exempt from income tax

HISENOR VIET NAMAQUATIC BREEDING CO.,LTD Exempt from income tax

KEMBANG SUBUR INTERNATIONAL LTD. 24

NAMDUONG VIETNAMAQUATIC HATCHERY CO.,LTD. Exempt from income tax

SHENG LONG BIO TECH(M)SDN.BHD. 24

PRIME WORLD CO., LTD. 24

SHENG LONGAQUATECHNOLOGY (M) SDN. BHD. 24

THANG LONG(VINH LONG)BIOTECH CO.,LTD Exempt from income tax

Nano South Limited Exempt from income tax


Taxpayer Income tax rate (%)

Oceanic Forward Ventures Limited Exempt from income tax

Power Spring Investments Limited Exempt from income tax

Link Tide Limited Exempt from income tax

Changzhou Haid Biological Feed Co., Ltd. 25、12.5

Zhuhai Hailong Biotechnology Co., Ltd. 15

Yunnan Haid Biotechnology Co., Ltd. 15

Guangzhou Hailong Feed Co., Ltd. 20

Wuhan Shuijiyuan Biotechnology Co., Ltd. 20

LANKING PTE.LTD. 17

Haid Lanking International Trading Inc. Note 1

LANKING NEMO(SG) PTE.LTD. 17

SHENGLONG BIO-TECH(INDIA)PRIVATE LIMITED 25

LANKING RICKWORTH PTE.LTD. 17

HAIDMARINO CIA.LTDA. Exempt from income tax

Lanking Nano PTE.LTD. 17

HAI DUONG HAID COMPANY LIMITED 8.5

HAI DAI COMPANY LIMITED 15

VINH LONG HAI DAI CO.,LTD Exempt from income tax

BINH DINH HAI LONG CO.,LTD Exempt from income tax

Guangzhou Cangyouliang Trading Co., Ltd. 20

Guangzhou Danong Enterprise Management Co., Ltd. 20

Suixian Haiding Veterinary Service Co., Ltd. Exempt from income tax

Yuncheng Haiding Veterinary Service Co., Ltd. Exempt from income tax

Shan County Haiding Veterinary Service Co., Ltd. Exempt from income tax

Xinxiang Hairuida Feed Co., Ltd. 20

Heze Haiding Feed Technology Co., Ltd. 15

Heze Dingxin Veterinary Service Co., Ltd. Exempt from income tax

Jining Haiding Veterinary Service Co., Ltd. Exempt from income tax

Jining Sishui Dingxin Veterinary Service Co., Ltd. Exempt from income tax

Feixian Hairuida Veterinary Service Co., Ltd. Exempt from income tax

Yinan Dingxin Veterinary Services Limited Exempt from income tax

Tengzhou Fengcheng Feed Co., Ltd. 20

Binzhou Haiding Veterinary Service Co., Ltd. Exempt from income tax

Jining Fengcheng Feed Co., Ltd. 20

Donge DingxinAquaculture Service Co., Ltd. Exempt from income tax

Heze Haiding Ecological Breeding Co., Ltd. Exempt from income tax

Junan Haiding Veterinary Service Co., Ltd. Exempt from income tax

Linyi Dingxin Culture Co., Ltd. Exempt from income tax


Taxpayer Income tax rate (%)

Linyi Haiding Veterinary Service Co., Ltd. Exempt from income tax

Liaocheng Haiding Veterinary Service Co., Ltd. Exempt from income tax

Henan Haiding Feed Co., Ltd. 20

Qinggang Fengcheng Baizun Feed Co., Ltd. 20

Suihua Fengcheng Baizun Feed Co., Ltd. 20

Chengwu Fengcheng Feed Co., Ltd. 20

Linyi Dinghao Culture Co., Ltd. Exempt from income tax

Dongying Dinghao Culture Co., Ltd. Exempt from income tax

Guangzhou Heshengtang Biotechnology Co., Ltd. 20

Henan HaiheAgriculture andAnimalHusbandryTechnologyCo., Ltd. 20

HAID (ECUADOR) FEED CIA.LTDA. Exempt from income tax

Guangdong BairongAquatic Breeding Group Co., Ltd. 12.5

Zhaoqing BairongAquatic Breeding Co., Ltd. 12.5

Yangxin BairongAquatic Breeding Co., Ltd. 20

Jingzhou BairongAquatic Breeding Co., Ltd. 12.5

Shandong BairongAquatic Breeding Co., Ltd. 20

Hainan BairongAquatic Breeding Co., Ltd. 12.5

Zhaoqing BaishengyuanAquatic Breeding Co., Ltd. 12.5

Guangdong BaishengyuanAquatic Breeding Co., Ltd. 12.5

Qingyuan BaishengyuanAquatic Breeding Co., Ltd. 12.5

Hunan Innovation Biotechnology Co., Ltd. 15

Shijiazhuang Weike Biotechnology Co., Ltd. 15

Shenyang Haid Feed Co., Ltd. 15

Wuhan Zeyi Investment Co., Ltd. 20

Jiaxiang Haiying Food Co., Ltd. Exempt from income tax

Linxi Haiying Food Co., Ltd. Exempt from income tax

Yiyuan Haiying Food Co., Ltd. Exempt from income tax

Zouping Haiying Food Co., Ltd. Exempt from income tax

Binzhou Haiying Food Co., Ltd. Exempt from income tax

Dezhou Haiying Food Co., Ltd. Exempt from income tax

Weifang Daxin Feed Co., Ltd. 20

GaomiHaiheAgricultureandAnimalHusbandryTechnologyCo.,Ltd. 20

ShouguangHaiheAgriculture andAnimalHusbandryTechnologyCo., 20
Ltd.

Qingdao Zhizhuxia Experimental Technology Co., Ltd. Exempt from income tax

Linyi Zhizhuxia Breeding Technology Service Co., Ltd. 20

Hunan Jinhuilong Technology Co., Ltd. 15

Huaian Huilong Feed Co., Ltd. 20


Taxpayer Income tax rate (%)

Guangdong Haid Biotechnology Co., Ltd. 20

Guangzhou Nansha Haid Technology Co., Ltd. 20

Guangzhou RonghaiAquaculture Technology Co., Ltd. 20

Zhongshan RonghaiAquaculture Co., Ltd. 12.5

Guangzhou RongdaAquaculture Technology Co., Ltd. 12.5

Jiangmen RonghaiAquaculture Technology Co., Ltd. 12.5

Zhongshan Yugezi Food Co., Ltd. Exempt from income tax

Guangxi Ronghai Fishery Co., Ltd. 12.5、Exempt from income tax

Zhongshan RongdaAquatic Fingerlings Co., Ltd 20

Guangzhou Hairong Food Co., Ltd. 12.5

Foshan RongdaAquatic Fingerlings Co., Ltd 12.5

Guangzhou Ronghai Seedling Technology Co., Ltd. 12.5

Yichang ZhihaiAgriculture andAnimal Husbandry Co., Ltd. 20

Mianyang Zhonggui Feed Co., Ltd. 20

Dali Haizhi Trading Co., Ltd. 20

Chongqing Haizhi Feed Co., Ltd. 20

Chongqing Hainong Veterinary Service Co., Ltd. Exempt from income tax

Yibin Yucan Veterinary Service Co., Ltd. 20

Ezhou Haifeng EcologicalAgriculture Co., Ltd. Exempt from income tax

Qingyuan RonghaiAquaculture Technology Co., Ltd. 12.5、Exempt from income tax

Zhaoqing RonghaiAquaculture Technology Co., Ltd. 12.5

Guangdong Qingyuan Guanghong Feed Co., Ltd. 20

Hainan HaidAquatic Seed Industry Development Co., Ltd. 12.5

Yancheng RunchuanAgricultural Technology Co., Ltd. 20

Foshan Lianduoli Feed Co., Ltd. 20

Guangdong Haifulai Biotechnology Co., Ltd. 20

Liupanshui Haid Biotechnology Co., Ltd. 20

Guangdong Haiqi Investment Co., Ltd 20

Heze Haibo Youmei Technology Service Co., Ltd. 20

Kaifeng Haiqi Technology Service Co., Ltd. 20

Sichuan Haiqi Technology Service Co., Ltd. 20

Xishui Haiqi Technical Service Co., Ltd. 20

Kunming Haiqi Technology Service Co., Ltd. 20

Mianyang Haiqi Culture Technology Co., Ltd. 20

Ya an Haiqi Culture Technology Co., Ltd. 20

Nanchang Haiqi Veterinary Medicine Co., Ltd. 20

Hengyang Haiqi Technology Service Co., Ltd. 20

Jingzhou Haiqi Technology Service Co., Ltd. 20


Taxpayer Income tax rate (%)

Jingshan Haiqi Technology Service Co., Ltd. 20

Huaihua Haiqi Technology Service Co., Ltd. 20

Jieshou Haiqi Technology Service Co., Ltd. 20

Changde Haide Veterinary Drug Operation Co., Ltd. 20

Meizhou Haiqi Technology Co., Ltd. 20

Zhangzhou Haiqi Veterinary Medicine Co., Ltd. 20

Maoming Haiqi Technology Co., Ltd. 20

Yangjiang Haiqi Technology Co., Ltd. 20

Qingyuan Haiqi Technology Co., Ltd. 20

Gansu MuqiAgricultural Technology Co., Ltd. 20

Raoping Haide Biotechnology Co., Ltd. 20

Yulin Haiqi Biotechnology Co., Ltd. 20

Qinzhou City Pubei County Haiqi Biotechnology Co., Ltd. 20

Xingtai HaiqiAquaculture Technology Service Co., Ltd. 20

Suixi Haihe Veterinary Drug Co., Ltd. 20

Yangchun Haihe Veterinary Medicine Co., Ltd. 20

Luoding Haihe Veterinary Medicine Co., Ltd. 20

Yangling HaiqiAgricultural Technology Co., Ltd. 20

Bobai Haihe Veterinary Drug Co., Ltd. 20

Guangzhou HaifengAquaculture Service Co., Ltd. Exempt from income tax

Taishan Debao Feed Co., Ltd. 20

Maoming DebaoAgriculture andAnimal Husbandry Co., Ltd. 20

Shaoguan Dachuan Biotechnology Co., Ltd. 20

Guizhou Hailongwang Biological Technology Co., Ltd. 20

Ningguo Haid Biotechnology Co., Ltd. 20

Nantong Fengmu Trading Co., Ltd. 20

Guangzhou Nansha HaishengyuanAquaculture Technology Co., Ltd. 12.5

LeizhouYuexiuHaishengyuan Shrimp CulturingTechnologyCo., Ltd. 20

Dongying HaishengyuanAquaculture Co., Ltd. 12.5

Weifang Haixin Biotechnology Co., Ltd. 12.5

Wudi HaishengyuanAquaculture Co., Ltd. 12.5

Hubei Haid Breeding Technology Co., Ltd. 12.5

Inner Mongolia Haishan Feed Co., Ltd. 20

Huizhou Haid Biotechnology Co., Ltd. 20

Zigong Hailong Biotechnology Co., Ltd. 20

Zhuhai Chenzhe Private Equity Fund Management Co., Ltd. 20

Zhaoqing Haid Feed Co., Ltd. 20

Yunnan Zhonggui Feed Co., Ltd. 20


Taxpayer Income tax rate (%)

Yunnan Hairui Biotechnology Co., Ltd. 20

Yueyang Fengtun EcologicalAgriculture Co., Ltd. 20

Yueyang Jinhuilong Biotechnology Co., Ltd. 20

Yongzhou Haid Biotechnology Co., Ltd. 20

Yingkou Dachuan Feed Technology Co., Ltd. 20

Yibin Zhihai Feed Co., Ltd. 20

Yangling Huashite Testing Technology Co., Ltd. 20

Yantai Zhizhuren Pig Farm Feed Co., Ltd. 20

Xuchang Haihe Feed Co., Ltd. 20

Xuzhou Hairuida Feed Co., Ltd. 20

Xuzhou Haidahe New Feed Co., Ltd. 20

Xingtai Haid Biotechnology Co., Ltd. 20

Xinjiang Xiyu Haihua Products Co., Ltd. 20

Wuwei Haimu Biotechnology Co., Ltd. 20

Wuwei Haid Feed Co., Ltd. 20

Weifang Binhai Haiding Feed Co., Ltd. 20

Tongliao Haida Biotechnology Co., Ltd. 20

Sihong Haiding Feed Co., Ltd. 20

Sichuan HaimufengAgriculture Co., Ltd. 20

Sichuan Hailong Biotechnology Co., Ltd. 20

Shijiazhuang Huilong Feed Co., Ltd. 20

Shaoyang Haid Feed Co., Ltd 20

Shandong Daxin Agriculture andAnimal Husbandry Technology Co., 20
Ltd.

Qujing Zhihai Feed Co., Ltd. 20

Qingyuan HainongAgriculture andAnimal Husbandry Co., Ltd. 20

Qingdao Huaxin Feed Co., Ltd. 20

Qingdao Haihe Agriculture and Animal Husbandry Technology Co., 20
Ltd.

Qianjiang Hailong Biotechnology Co., Ltd. 20

Pingnan Haid Feed Co., Ltd. 20

Pingjiang Bairuilai Biotechnology Co., Ltd. 20

Inner Mongolia Haid Feed Co., Ltd 20

Nanning Dachuan Biotechnology Co., Ltd. 20

Mianyang Hailong Feed Co., Ltd. 20

Meishan Haid Zhihai Feed Co., Ltd. 20

Liuzhou Haid Feed Co., Ltd. 20

Liaoning Haid Biotechnology Co., Ltd. 20

Lianyungang Haihe Feed Co., Ltd. 20


Taxpayer Income tax rate (%)

Leizhou Hailong Biotechnology Co., Ltd. 20

Jiangsu HaiheAgriculture andAnimal Husbandry Co., Ltd. 20

Jiangsu Haid Biotechnology Co., Ltd. 20

Huaibei Haid Biological Feed Co., Ltd 20

Hubei Haiqi Technology Service Co., Ltd. 20

Hengyang Yunyi Biotechnology Co., Ltd. 20

Heshan Ronghai Feed Co., Ltd. 20

Heshan Haiwei Feed Co., Ltd. 20

Henan Haid Jiuzhou Biotechnology Co., Ltd. 20

Hebei Haimu Biotechnology Co., Ltd. 20

Handan Huilong Feed Co., Ltd. 20

Haixin Biological (Beijing) Technology Co., Ltd. 20

Haixin (Tianjin) Biotechnology Co., Ltd. 20

Haile (Luliang) Biotechnology Co., Ltd. 20

Haid Pet Food Co., Ltd. 20

Haid Pet Food (Weihai) Co., Ltd. 20

Guilin Haid Biotechnology Co., Ltd. 20

Guiyang Haiyue Feed Technology Co., Ltd. 20

Guiyang Haida Zhihai Feed Co., Ltd. 20

Guiyang Haida Biotechnology Co., Ltd. 20

Guiyang Dachuan Biotechnology Co., Ltd. 20

Guangzhou Changsheng Logistics Co., Ltd. 20

Guangzhou Zecan Investment Management Co., Ltd. 20

Guangzhou Yuannong Investment Management Co., Ltd. 20

Guangzhou Xingnong Ecological Agriculture and Animal Husbandry 20
Development Co., Ltd

Guangzhou ShunkangAquaculture Co., Ltd. 20

Guangzhou Haifengchang Enterprise Management Co., Ltd. 20

Guangzhou Debao Nongshan Feed Co., Ltd. 20

Guangzhou Punong Investment Management Co., Ltd. 20

Guangzhou Nongzhidao Feed Co., Ltd. 20

Guangzhou Haiyou Trading Co., Ltd. 20

Guangzhou Haiqi Technology Co., Ltd. 20

Guangzhou Haijian Investment Co., Ltd. 20

Guangzhou Haihan Financial Technology Co., Ltd. 20

GuangzhouAnan Logistics Co., Ltd. 20

Guangxi Rongchuan Feed Co., Ltd. 20

Guangdong Shunde Haid Biotechnology Co., Ltd. 20


Taxpayer Income tax rate (%)

Guangdong Huashite Testing Technology Co., Ltd. 20

Guangdong Hairuike Biotechnology Co., Ltd. 20

Guangdong Hairuite Pet Nutrition Technology Co., Ltd. 20

Guangdong Haid Poverty Alleviation Investment Development Co., 20
Ltd.

Guangdong HaidAnimal HusbandryandVeterinaryResearch Institute 20
Co., Ltd

Gaotang HaidingAgriculture andAnimal Husbandry Co., Ltd. 20

Gansu Fengying Technology Co., Ltd. 20

Foshan Dazhi Biotechnology Co., Ltd. 20

Enshi Haid Biotechnology Co., Ltd. 20

Dongguan Haiqi Feed Co., Ltd. 20

Dalian Haixin Biotechnology Co., Ltd. 20

Dali Haiwang Feed Co., Ltd. 20

Chaozhou Haid Biotechnology Co., Ltd 20

Anshan Dachuan Feed Technology Co., Ltd. 20

Anyang Haihe Agriculture and Animal Husbandry Technology Co., 20
Ltd.

2. Tax preferential treatments and approval documents

(1) Value-added tax (VAT)

In accordance with document Caishui [2001] No. 121 jointly issued by the Ministry of Finance and the State
Administration ofTaxation, the Companyand its subsidiaries are exempted fromVATon their feed products,
which has been filed with the competent tax authorities.

According to Interim Regulation of People’s Republic of China on Value-Added TaxArticle 16, agricultural
producers are exempted from value-added tax when selling self-produced agricultural products. The
Company and its subsidiaries are eligible for valued-added tax exemption when selling self-produced
products.

According to Application of the Low VAT Rate and the Simple VAT Collection Policy on Some Goods,
Caishui [2009] No. 9 and Notice on the Degenerate VAT Collection Rate Policy Caishui [2014] No. 57, both
issued by the Ministry of Finance and State Taxation Administration, sales of self-produced biological
products made of microorganisms, microbial metabolites, animal toxins, human or animal blood or tissues
are subject to VAT at a simple rate of 3%.

According to Announcement on Clarifying the VAT Exemption Policy for Small-scale VAT Taxpayers
Announcement No. 11 in 2021, issued by Ministry of Finance of State Taxation Administration, fromApril
1, 2022 to December 31, 2022, small-scale value-added tax taxpayers are exempt from value-added tax by
applying a 3% rate on taxable sales income.

According to the relevant regulations on value-added tax in the Socialist Republic of Vietnam, the feed and
feed related industries will be exempted from value-added tax from 2016, and the rental income of the
Company's cold storage in Vietnam will be subject to value-added tax at 10%.

(2) Corporate income tax

According to the provisions of Article 28 of the Enterprise Income Tax Law of People's Republic of China
(PRC), the enterprise income tax shall be levied at a reduced rate of 20% for eligible small and low-profit

enterprises;The enterprise income tax will be levied at the reduced rate of 15% for high-tech enterprises that
the state needs to give priority support. If the Company and its subsidiaries meet the above conditions, the
enterprise income tax shall be levied at preferential tax rates.

According to theAnnouncement of the GeneralAdministration of Taxation of the Ministry of Finance on the
Implementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual
Businesses (GeneralAdministration ofTaxation of the Ministryof FinanceAnnouncement 2021 No. 12) and
Announcement of State Taxation Administration of The People's Republic of China on Relevant Matters
Concerning Implementation of Preferential Income Tax Policies in Support of Small-scale Low-profit
Enterprises and Individual Businesses, No.8 in 2021, provides that from January 1, 2021 to December 31,
2022, the portion of the annual taxable income of small and micro enterprises not exceeding RMB 1 million
shall be reduced by 12.5% of the taxable income and subject to corporate income tax rate of 20%. If the
subsidiary complies with the provisions of the aforesaid announcement, the enterprise income tax shall be
calculated and paid at the preferential tax rate.

According to the provisions of the Notice of the Ministryof Finance and the StateAdministration ofTaxation
on Further Implementing the Preferential Income Tax Policy for Small and Micro Enterprises (Notice of the
Ministry of Finance and the State Administration of Taxation No.13 of 2022), from January 1, 2022 to
December 31, 2024, the portion of the annual taxable income of small and micro-profit enterprises that
exceeds RMB 1 million but does not exceed RMB 3 million is included in the taxable income at a reduced
rate of 25%, and the enterprise income tax is paid at a rate of 20%. If the subsidiary complies with the
provisions of the aforesaid announcement, the enterprise income tax shall be calculated and paid at the
preferential tax rate.
InaccordancewithArticle27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandArticle
86 of the Regulation on the Implementation of the Corporate Income Tax Law of the People’s Republic of
China, Enterprise income from livestock and poultry raising shall be exempted from enterprise income tax;
Enterprise income tax will be levied on the income of enterprises engaged in mariculture and inland
aquaculture by half. The above income earned by the Company and its subsidiaries is subject to corporate
income tax under preferential policies.

In accordance with Notice of the Ministry of Finance and State Administration of Taxation on Announcing
the Scope of Primary Processing of Agricultural Products Covered by Preferential Policies on Corporate
Income Tax (for Trial Implementation) (Caishui [2008] No. 149) and Supplementary notice on the scope of
primary processing of agricultural products enjoying preferential enterprise income tax (Caishui [2011] No.
26), if the primary processed products produced by enterprises fall within the scope of primary processing of
agricultural products that enjoy the preferential policies of enterprise income tax, enterprises shall be
exempted from enterprise income tax. The above income earned by the Company and its subsidiaries is
subject to corporate income tax under preferential policies.

In accordance with the Announcement on the Renewal of the Enterprise Income Tax Policy for the Western
Development (Ministry of Finance Announcement 2020 No. 23), from January 1, 2021 to December 31,
2030, the enterprise income tax will be levied at a reduced rate of 15% on enterprises with encouraged
industries located in the western region. Subsidiaries of the Group established in the western region to which
the announcement belongs are subject to corporate income tax at the rate of 15%.

According to the provisions of the Notice of the Ministryof Finance and the StateAdministration ofTaxation
and the Ministry of Science and Technology on Strengthening Pre-tax Deduction in Support of Science and
Technology Innovation (Ministry of Finance and the State Administration of Taxation and the Ministry of
Science and Technology Announcement No.28 of 2022), enterprises currently applying 75% of pre-tax
deductions for research and developmentexpenses will have their pre-tax deductions increased to 100% from
October 1, 2022 to December 31, 2022. If the Company and its subsidiaries meet the requirements of the
aforesaid announcement, the enterprise income tax shall be calculated and paid in accordance with the
preferential policies.

In accordance with Notice of the Ministry of Finance on Enterprise Income Tax Preferential Policies of
Hainan Free Trade Port. (Caishui [2020] No. 31), from January 1, 2020 to December 31, 2024, the enterprise

income tax is levied at a reduced rate of 15% on the encouraged industrial enterprises registered in Hainan
FreeTradePortand operating substantially. Subsidiaries of theGroupestablished within the territorycovered
by the above policy are subject to corporate income tax at the rate of 15%.

Subsidiary of the Group registered in the British Virgin Islands, is exempted from corporate income tax
according to the local tax law.

Under the Hong Kong Tax Ordinance, the Group's locally incorporated subsidiaries are subject to profits tax
at 16.50%. Plus, the offshore income of HKIH is declared exempt from profits tax. Non-locally registered
subsidiaries which have their actual operations and management offices located in Hong Kong and are
engaged in qualified finance business, are Hong Kong tax resident enterprises, enjoying the preferential
policy of halving the profits tax of treasury center business (8.25%).

Subsidiaries of the Company registered in Malaysia subject to a corporate income tax rate of 24% in
accordance with the Malaysian tax law.

Subsidiaries of the Company registered in Singapore subject to a corporate income tax rate of 17% in
accordance with the Singaporean tax law.

According to the local tax laws of Ecuador, enterprises enjoy a tax exemption period of 12 years from the
issuance of the first invoice, and the tax rate after the tax exemption period is 25%. Subsidiaries of the
Company registered in Ecuador is still within tax exempt period as of the end of 2022.

Subsidiaries of the Company registered in Indonesia subject to a corporate income tax rate of 22% in
accordance with the Indonesian tax law.

Subsidiaryof the Companyregistered in Egypt subject to a corporate income tax rate of 22.5% in accordance
with the Egyptian tax law.

Subsidiary of the Company registered in Bangladesh subject to multi-level tax rate according to the local tax
laws of Bangladesh.As of the end of 2022, Bangladesh Haid is at a deficit and is not subject to income tax.
SubsidiaryoftheCompanyregisteredinVietnamsubjecttoacorporateincometaxrate followingthebeneathincome tax policy:

①Corporate income tax exempts for the first two year from the year in which the profit was generated for
the first time by the company, then half for the subsequent four years in according to the preferential tax
policy. HAI DUONG HAID COMPANY LIMITED profits in 2018; HAID FEED COMPANY LIMITED
profits in 2019 and half the income tax. VINH LONG HAI DAI CO.,LTD profits in 2021; THANG
LONG(VINH LONG)BIOTECH CO.,LTD profits in 2022; VINH LONG HAILIANKE
BIOTECHNOLOGYCO., LTD has not begun to profit and the above enterprises are exempted from income
tax.

②In accordance with the preferential policies of the Vietnamese government on new investment and
industries in difficult areas, Sheng Long Bio-Tech enjoyed a preferential corporate income tax rate at 10%
and 15% for different factories in different areas, rental income for cold storage and sales of raw materials
were subject to tax rate at 10%. Sales of raw material is taxed at 20%. Animal insurance is taxed at 17%.
Other income was subject to a tax rate at 20%.

③In accordance with the Vietnam's Local Income Tax Policy, LONG SHENG INTERNATIONAL LTD. Is
taxed at 15% for sales from Self-produced feed and 20% from trading.

④In accordance with the Vietnam's Local Income Tax Policy, NAMDUONG VIETNAM AQUATIC
HATCHERY CO.,LTD. is exempted from income tax from selling cultured shrimps.

⑤HAIDAICOMPANYLIMITED,DONGNAIHAIDFARM COMPANYLIMITED enjoythe preferential
income tax policy of 15% according to type of business.


⑥BINH DINH HAI LONG CO., LTD is exempted from income tax for the first four year from the year in
which the profit was generated for the first time, then half for the subsequent nine years. The company has
not yet entered a profit period as of the end of 2022.

V. Notes to Key Items in Consolidated Financial Statements

1. Cash at bank and on hand

Item As at 12/31/2022 As at 12/31/2021

Cash on hand 456,386.59 939,250.50

Cash at bank 1,889,846,506.43 1,620,940,881.40

Other monetary funds 370,283,773.67 117,774,993.24

Total 2,260,586,666.69 1,739,655,125.14

Including: Total overseas deposits 468,657,117.65 514,891,017.18

Note:

(1) Interest receivable included in cash at bank is RMB 7,790,319.25.

(2) For cash with restriction, please refer to Note V. “67. Assets with restricted ownership or right-of-use
assets”.
2. Held-for-trading financial assets

Item As at 12/31/2022 As at 12/31/2021

Held-for-trading financial assets 699,942,009.75 2,507,784.13

Including: Derivative financial 439,630,197.91 2,507,784.13
assets

Bank financial products 260,311,811.84 -

Total 699,942,009.75 2,507,784.13

Note:

(1) At the end of the reporting period, the derivative financial asset is the fair value of the futures, swaps,
and other business.

(2) For held-for-trading financial assets with restriction, please refer to Note V “67. Assets with restricted
ownership or right-of-use assets”.

3. Notes receivable

As at 12/31/2022 As at 12/31/2021

Provision Provision

Category for bad Carrying for bad Carrying
Book value and amounts Book value and amounts
doubtful doubtful

debts debts

Bank

acceptance 5,649,969.84 - 5,649,969.84 8,752,527.80 - 8,752,527.80
bills

Usance letters 1,251,634.20 - 1,251,634.20 1,149,867.31 - 1,149,867.31
of credit


As at 12/31/2022 As at 12/31/2021

Provision Provision

Category for bad Carrying for bad Carrying
Book value and amounts Book value and amounts
doubtful doubtful

debts debts

Total 6,901,604.04 - 6,901,604.04 9,902,395.11 - 9,902,395.11

(1) The Group had no notes receivable in pledge as of the end of the reporting period.

(2) At the end of the reporting period, notes receivable endorsed or discounted by the Group but unexpired.

Category Amount derecognized at the Amount not derecognized at
end of the period the end of the period

Bank acceptance bills 27,900,534.54 3,311,269.56

(3) As of the end of the reporting period, the Group had no notes that were reclassified into accounts
receivable due to note drawers not performing their obligations.

(4) Category by provision for bad and doubtful debts approach

As at 12/31/2022

Book value Provision for bad and

doubtful debts

Category Expected Carrying
Amount Percentage Amount credit loss amounts
(%) percentage

(%)

Assessed for impairment - - - - -
individually

Assessed for impairment 6,901,604.04 100.00 - - 6,901,604.04
collectively
Including:

Bank acceptance bills 5,649,969.84 81.86 - - 5,649,969.84

Usance letters of credit 1,251,634.20 18.14 - - 1,251,634.20

Total 6,901,604.04 100.00 - - 6,901,604.04

(Continued):

As at 12/31/2021

Book value Provision for bad and

doubtful debts

Category Expected Carrying
Amount Percentage Amount credit loss amounts
(%) percentage

(%)

Assessed for impairment - - - - -
individually

Assessed for impairment 9,902,395.11 100.00 - - 9,902,395.11
collectively
Including:

Bank acceptance bills 8,752,527.80 88.39 - - 8,752,527.80


As at 12/31/2021

Book value Provision for bad and

doubtful debts

Category Expected Carrying
Amount Percentage Amount credit loss amounts
(%) percentage

(%)

Usance letters of credit 1,149,867.31 11.61 - - 1,149,867.31

Total 9,902,395.11 100.00 - - 9,902,395.11

(5) Recognitions or recoveries or reversals of provision for bad and doubtful debts in current period

Amount of provision for bad and doubtful debts

12/31/2021 -

Recognitions in current period -

Recoveries or reversals in current period -

Write-off in current period -

12/31/2022 -

(6) As of the end of the reporting period, there is no notes receivable write-off in this group.

4. Accounts receivable

（1）Accounts receivable by aging

Aging As at 12/31/2022 As at 12/31/2021

Within 1 year 1,865,803,147.34 1,237,161,268.69

1 to 2 years 174,116,530.78 119,676,027.65

2 to 3 years 111,174,788.59 55,038,329.36

3 to 4 years 27,320,410.68 28,589,027.99

4 to 5 years 16,405,157.01 18,834,138.82

More than 5 years 22,028,650.67 26,737,605.18

Subtotal 2,216,848,685.07 1,486,036,397.69

Less: provision for bad and doubtful debts 264,840,804.02 192,707,568.31

Total 1,952,007,881.05 1,293,328,829.38


（2）Accounts receivable by the method of recognizing bad and doubtful debts

As at 12/31/2022 As at 12/31/2021

Book value Provision for bad and Book value Provision for bad and

Category doubtful debts Carrying doubtful debts Carrying
Percentag Expected Amount Percentag Expected Amount
Amount e Amount credit loss Amount e Amount credit loss

(%) (%) (%) (%)

Assessed

for 144,096,100.4

impairment 215,697,249.53 9.73 3 66.80 71,601,149.10 118,069,644.52 7.95 79,041,086.36 66.94 39,028,558.16
individuall
y
Assessed

for 2,001,151,435.5 90.27 120,744,703.5 6.03 1,880,406,731.9 1,367,966,753.1 92.05 113,666,481.9 8.31 1,254,300,271.2
impairment 4 9 5 7 5 2
collectively
Including:
Accounts

receivable 1,987,173,385.9 120,497,292.1 1,866,676,093.8 1,247,432,812.5 111,516,680.5 1,135,916,132.0
of feed and 3 89.64 2 6.06 1 6 83.94 6 8.94 0
relevant
customers
Accounts
receivable

of 13,978,049.61 0.63 247,411.47 1.77 13,730,638.14 120,533,940.61 8.11 2,149,801.39 1.78 118,384,139.22
materials
trade
customers

Total 2,216,848,685.0 100.00 264,840,804.0 11.95 1,952,007,881.0 1,486,036,397.6 100.00 192,707,568.3 12.97 1,293,328,829.3
7 2 5 9 1 8


Provision for bad and doubtful debts which were recognized individually:

As at 12/31/2022

Name Book Value Provision for Expected Reason of
bad and doubtful debts Credit loss (%) provision

CustomerA 24,450,871.01 16,139,836.11 66.01 Estimated some of portion to be unrecoverable

Customer B 9,003,105.88 9,003,105.88 100.00 Estimated to be unrecoverable

Remaining individual customers 182,243,272.64 118,953,158.44 65.27 Estimated some of portion to be unrecoverable

Total 215,697,249.53 144,096,100.43 66.80 /

Note: The expected credit loss rate of the remaining individual provision customers is the average proportion of the total individual provision for bad debts to the book

balance of that portion of customers.


Provision for bad and doubtful debts which were recognized collectively:

Recognized collectively item 1:Accounts receivable of feed and relevant customers

As at 12/31/2022 As at 12/31/2021

Provision for Expected Provision for Expected
Accounts bad and credit Accounts bad and credit
receivable Doubtful loss (%) receivable Doubtful loss (%)
debts debts

Within 1,835,063,093.03 49,699,500.59 2.71 1,097,779,516.78 26,810,526.99 2.44
1 year

1 to 2 104,577,590.23 33,533,330.94 32.07 75,286,449.07 29,161,655.51 38.73
years

2 to 3 24,727,060.47 17,431,334.81 70.49 38,672,596.05 23,518,362.52 60.81
years

3 to 4 14,251,554.78 11,292,915.24 79.24 16,873,346.39 13,639,011.11 80.83
years

4 to 5 3,083,043.01 3,069,166.13 99.55 8,750,297.66 8,321,604.05 95.10
years
More

than 5 5,471,044.41 5,471,044.41 100.00 10,070,606.61 10,065,520.38 99.95
years

Total 1,987,173,385.93 120,497,292.12 6.06 1,247,432,812.56 111,516,680.56 8.94

Recognized collectively item 2:Accounts receivable of material trade customers

As at 12/31/2022 As at 12/31/2021

Provision Provision

Accounts for bad Expected Accounts for Expected
receivable and credit loss receivable bad and credit
Doubtful (%) Doubtful loss (%)
debts debts

Within 1 13,978,049.61 247,411.47 1.77 120,533,940.61 2,149,801.39 1.78
year

（3）Recognitions or recoveries or reversals of provision for bad and doubtful debts in current period

Amount of provision for
bad and doubtful debts

12/31/2021 192,707,568.31

Recognitions in current period 129,053,841.16

Merger in current period 5,665,703.94

Recoveries or reversals in current period 51,254,901.51

Write- off in current period -

12/31/2022 264,840,804.02

There is no reversal or recovery of significant bad debt reserves in current period.

Accounts receivable actually written off in current period

Item Write-off amount

Accounts receivable actually write-off 51,254,901.51


There are no significant accounts receivable write-off in current period.

（4）The receivables by debtor with top five closing balance

The total accounts receivable from the top five debtors with the largest closing balance amounted to RMB
229,427,435.40, accounting for 10.35% of the total closing balance of accounts receivable, with the total
corresponding closing balance of the provision for bad and doubtful debts being RMB 9,102,804.21.

（5）No accounts receivable was derecognized due to transfer of financial assets in current period.

（6）There were no such cases in current period where the Group had transferred an accounts receivable
but continued to be involved in the assets or liabilities associated with that account receivable.

5. Prepayments

(1) Prepayments by aging

Aging As at 12/31/2022 As at 12/31/2021

Amount Percentage% Amount Percentage%

Within 1 year 1,783,514,951.53 99.79 2,528,002,885. 99.10
53

1 and 2 years 3,577,093.13 0.20 22,462,096.77 0.88

2 and 3 years 82,764.36 0.00 239,292.35 0.01

3 years above 107,440.31 0.01 149,463.37 0.01

Total 1,787,282,249.33 100.00 2,550,853,738. 100.00
02

Note: Prepayments over 1 year were mainly unsettled prepayment to suppliers.

(2) The prepayments by debtors with top five closing balance

The total amount of prepayments by debtors with top five closing balance was RMB 862,153,191.55,
accounting for 48.24% of the closing balance of total prepayments.

6. Other receivables

Item As at 12/31/2022 As at 12/31/2021

Interests receivable - -

Dividends receivable - 900,009.00

Other receivables 1,322,999,051.80 779,125,761.40

Total 1,322,999,051.80 780,025,770.40

(1) Dividends receivable

Item As at 12/31/2022 As at 12/31/2021

CITIC Agri-Fund Management Co., - 900,009.00
Ltd.

Subtotal - 900,009.00

Less: Provision for bad and doubtful - -
debts

Total - 900,009.00

(2) Other receivables
①Other receivables by aging

Aging As at 12/31/2022 As at 12/31/2021

Within 1 year 1,272,712,082.84 764,082,359.64

1 to 2 years 51,430,153.93 17,043,588.01

2 to 3 years 10,278,760.31 6,108,241.45

3 to 4 years 4,397,277.57 9,504,148.75

4 to 5 years 4,387,762.13 2,006,684.48

5 years above 5,944,492.41 47,283,719.70

Subtotal 1,349,150,529.19 846,028,742.03

Less: Provision for bad and doubtful debts 26,151,477.39 66,902,980.63

Total 1,322,999,051.80 779,125,761.40

②Other receivables by nature

Aging As at 12/31/2022 As at 12/31/2021

Security deposit 735,163,674.92 567,214,945.49

Futures margin 486,310,151.38 98,699,697.60

Accounts with external parties 53,599,036.22 101,515,045.66

Insurance compensation 23,793,192.43 33,936,663.62

Disbursement of social insurance 13,091,720.42 10,727,105.85
and provident fund

Petty cash 7,505,369.08 7,888,909.80

Others 29,687,384.74 26,046,374.01

Total 1,349,150,529.19 846,028,742.03

③Provision for bad and doubtful debts

Stage 1 Stage 2 Stage 3

Lifetime

Provision for bad and Expected credit Lifetime Expected

doubtful debts 12-month expected losses credit losses Total
credit losses (not occurred (occurred credit

credit impairment)

impairment)

Balance at 12/31/2021 12,043,932.90 - 54,859,047.73 66,902,980.63

In current period

-Transfer into stage 2 - - - -

-Transfer into stage 3 -1,038,954.83 - 1,038,954.83 -

-Reversal back to stage - - - -
2

-Reversal back to stage - - - -
1


Stage 1 Stage 2 Stage 3

Lifetime

Provision for bad and Expected credit Lifetime Expected

doubtful debts 12-month expected losses credit losses Total
credit losses (not occurred (occurred credit

credit impairment)

impairment)

Accrual in current 6,513,107.16 - 4,908,065.84 11,421,173.00
period

Reversal in current - - 622,177.00 622,177.00
period

Sold off in current - - - -
period

Write off in current 698,892.54 - 50,851,606.70 51,550,499.24
period

Other movement - - - -

Balance at 12/31/2022 16,819,192.69 - 9,332,284.70 26,151,477.39

④Recognitions or recoveries or reversals of provision for bad and doubtful debts in current period

Category

Category As at Recoveries Other As at
12/31/2021 Recognitions or Write-off changes 12/31/2022
reversals

Other 66,902,980.63 11,421,173.00 622,177.00 51,550,499.24 - 26,151,477.39
receivables
⑤Other receivables actually write-off

Item Write-off amount

Other receivables actually write-off 51,550,499.24

Among, the write-off of important other receivable:

Is the
payment
Unit Nature Amount Reason Verification procedure generated by
related party
transactions

Obtained conclusive

External Payment evidence indicating that

Unit 1 unit 45,671,482.72 cannot be it cannot be repaid and No
transactions repaid have obtained internal

approval

⑥Other receivables with top five closing balance

Percentage of Provision for
Name of Payment other bad and
ebtor nature Book balance Aging receivables doubtful
ending balance debts
(%)

CustomerA Security 231,130,435.85 Within 1 17.13 2,349,303.86
deposit year


Percentage of Provision for

Name of Payment other bad and

ebtor nature Book balance Aging receivables doubtful

ending balance debts

(%)

Customer B Future margins 114,190,900.00 Within 1 8.46 -

year

Customer C Security 81,862,600.00 Within 1 6.07 818,626.00

deposit year

Customer D Future margins 75,991,376.00 Within 1 5.63 -

year

Customer E Future margins 72,180,344.00 Within 1 5.35 -

year

Total -- 575,355,655.85 -- 42.64 3,167,929.86

⑦There were no other receivables associated with government subsidies as of the period end.

⑧No other receivables were derecognized due to transfer of financial assets in the current period.

⑨There were no such cases in the current period where the Group had transferred the other receivables

but continued to be involved in the assets or liabilities associated with that other receivables.

7. Inventories

（1）Inventories by category

As at 12/31/2022 As at 12/31/2021

Provision for Provision for

impairment impairment

of of

Item inventories / Carrying inventories / Carrying
Book value Provision for amount Book value Provision for amount
impairment impairment

of contract of contract

performance performance

costs costs

Raw 7,525,170,842.94 - 7,525,170,842.94 5,512,406,719.05 1,150,954.95 5,511,255,764.10
material

Work in 8,410,183.05 - 8,410,183.05 10,295,978.16 - 10,295,978.16
progress

Finished 1,912,007,519.52 9,488,061.05 1,902,519,458.47 1,469,321,982.03 25,623,125.85 1,443,698,856.18
goods
Consumable

biological 3,191,348,654.19 7,005,245.27 3,184,343,408.92 1,998,362,195.15 2,240,170.95 1,996,122,024.20
assets
Contract

performance 4,637,757.98 - 4,637,757.98 8,815,235.63 - 8,815,235.63
cost

Total 12,641,574,957.68 16,493,306.32 12,625,081,651.36 8,999,202,110.02 29,014,251.75 8,970,187,858.27


（2）Provision for impairment of inventories

Additions during the year Write-back during the

Item As at year As at
01/01/2022 Provision Others Reversals or Others 12/31/2022
write-off

Raw 1,150,954.95 - - 1,150,954.95 - -
material

Finished 25,623,125.85 10,662,909.59 - 26,797,974.39 - 9,488,061.05
goods

Consumable

biological 2,240,170.95 12,495,871.34 - 7,730,797.02 - 7,005,245.27
assets

Total 29,014,251.75 23,158,780.93 - 35,679,726.36 - 16,493,306.32

Provision for impairment of inventories (continued)

Evidence of net realizable Reasons for reversals or write-
Item value/remaining consideration and off of provision for impairment
upcoming cost of inventories

The estimated selling price of related

finished products minus the estimated Used to produce products and
Raw material costs to be incurred until completion, achieve sales
estimated sales expenses, and

relevant taxes and fees.

The estimated selling price of related

Finished goods finished products minus the estimated Goods have been sold
selling expenses and related taxes.

The estimated selling price of related

assets minus the estimated cost to be Cultivate to a saleable state to
Consumable biological assets incurred until reaching the sellable achieve sales
state, estimated sales expenses, and

relevant taxes and fees.

（3）There were no capitalized borrowing costs among the closing balance of inventories.

8. Non-current assets due within one year

Item As at 12/31/2022 As at 12/31/2021

Long-term receivables due within one 925,889.24 5,645,605.89
year

Debt investments due within one year 14,000,000.00 4,000,000.00

Total 14,925,889.24 9,645,605.89

9. Other current assets

Item As at 12/31/2022 As at 12/31/2021

Rental expense 6,951,880.57 15,366,869.08

Insurance expense 15,839,380.46 9,876,673.98

Miscellaneous prepaid expense 28,004,564.33 25,884,369.75

Input VAT to be deducted and approved 80,005,440.16 106,043,610.05

Overpaid taxes and charges 81,268,203.97 30,475,138.95

Loans and advances to customers 229,252,757.17 529,171,710.31


Item As at 12/31/2022 As at 12/31/2021

Factoring receivables 87,325,714.86 70,965,276.44

Others 19,220,831.60 6,556,190.76

Total 547,868,773.12 794,339,839.32

（1）Loans and advances to customers due within one year

①Category by method of guarantee

Item As at 12/31/2022 As at 12/31/2021

Secured loans 226,127,117.07 539,103,919.28

Loan on credit 190,000.00 1,699,500.00

Mortgage loan 2,450,000.00 -

Secured / mortgage loans 5,000,000.00 -

Add: Interests receivable 588,643.80 1,054,313.57

Subtotal 234,355,760.87 541,857,732.85

Less: Provision for impairment 5,103,003.70 12,686,022.54

Total 229,252,757.17 529,171,710.31

② Category by overdue

Item As at 12/31/2022 As at 12/31/2021

Not overdue 224,977,086.44 505,327,084.14

Overdue 8,790,030.63 35,476,335.14

Add: Interests receivable 588,643.80 1,054,313.57

Subtotal 234,355,760.87 541,857,732.85

Less: Provision for impairment 5,103,003.70 12,686,022.54

Total 229,252,757.17 529,171,710.31

（2）Factoring receivables by overdue

Item As at 12/31/2022 As at 12/31/2021

Not overdue 68,769,101.24 51,140,537.56

Overdue 35,938,644.59 31,825,041.67

Add: Interests receivable 581,988.60 250,004.90

Subtotal 105,289,734.43 83,215,584.13

Less: Provision for impairment 17,964,019.57 12,250,307.69

Total 87,325,714.86 70,965,276.44

10. Debt investments


As at 12/31/2022 As at 12/31/2021

Item Provision Provision

Book balance for Book value Book balance for Book value

impairment impairment

Entrust 14,000,000.00 - 14,000,000.00 18,500,000.00 - 18,500,000.00

loans

Other 1,137.46 - 1,137.46 1,072.58 - 1,072.58

Subtotal 14,001,137.46 - 14,001,137.46 18,501,072.58 - 18,501,072.58

Less: debt

investment 14,000,000.00 - 14,000,000.00 4,000,000.00 - 4,000,000.00

due within

one year

Total 1,137.46 - 1,137.46 14,501,072.58 - 14,501,072.58

11. Loans and advances to customers

(1) Loans and advances to customers by method of guarantee：

As at 12/31/2022 As at 12/31/2021

Provision Provision

Item Book value for Carrying Book value for Carrying

impairme amount impairme amount

nt nt

Secured loans 226,527,11 4,974,816. 221,552,30 541,668,904. 12,677,299 528,991,604.

7.07 85 0.22 54 .79 75

Loan on 1,690,000.0 30,187.93 1,659,812.0 3,599,500.00 64,103.70 3,535,396.30

credit 0 7

Mortgage 2,450,000.0 36,115.11 2,413,884.8 - - -

loan 0 9

Secured / 5,000,000.0 4,925,873.1

mortgage 0 74,126.83 7 - - -

loans

Add:

Interests 588,643.80 20,885.35 567,758.45 1,060,165.63 17,995.13 1,042,170.50

receivable

Subtotal 236,255,76 5,136,132. 231,119,62 546,328,570. 12,759,398 533,569,171.

0.87 07 8.80 17 .62 55

Less: Due 234,355,76 5,103,003. 229,252,75 541,857,732. 12,686,022 529,171,710.

within one 0.87 70 7.17 85 .54 31

year

Total 1,900,000.0 33,128.37 1,866,871.6 4,470,837.32 73,376.08 4,397,461.24

0 3

(2) Loans and advances to customers by overdue：

As at 12/31/2022 As at 12/31/2021

Item Provision Carrying Provision Carrying
Book value for amount Book value for amount
impairment impairment

Not 226,877,086.44 3,836,326.43 223,040,760.01 509,792,069.40 8,620,846.03 501,171,223.37
overdue

Overdue 8,790,030.63 1,278,920.29 7,511,110.34 35,476,335.14 4,120,557.46 31,355,777.68


As at 12/31/2022 As at 12/31/2021

Item Provision Carrying Provision Carrying
Book value for amount Book value for amount
impairment impairment

Add:

Interests 588,643.80 20,885.35 567,758.45 1,060,165.63 17,995.13 1,042,170.50
receivable

Subtotal 236,255,760.87 5,136,132.07 231,119,628.80 546,328,570.17 12,759,398.62 533,569,171.55

Less: Due

within 234,355,760.87 5,103,003.70 229,252,757.17 541,857,732.85 12,686,022.54 529,171,710.31
one year

Total 1,900,000.00 33,128.37 1,866,871.63 4,470,837.32 73,376.08 4,397,461.24

(3) Provision for impairment of loans

Stage 1 Stage 2 Stage 3

Lifetime Lifetime

Provision for impairment of 12-month Expected credit Expected credit

loans expected losses losses Total

credit losses (not occurred (occurred credit

credit impairment)

impairment)

Balance at 12/31/2021 8,619,204.80 19,605.22 4,120,588.60 12,759,398.62

In the current period

-Transfer into stage 2 - - - -

-Transfer into stage 3 - - - -

-Reversal back to stage 2 - - - -

-Reversal back to stage 1 - - - -

Accrual in the current period -4,774,859.50 -16,206.55 -2,832,200.50 -7,623,266.55

Reversal in the current period - - - -

Sold off in the current period - - - -

Write off in the current period - - - -

Due within one year and

reclassify into other current 3,811,216.93 3,398.67 1,288,388.10 5,103,003.70

assets or interests receivable

Balance at 12/31/2022 33,128.37 - - 33,128.37

12. Long-term receivables

（1）Long-term receivables by nature

As at 12/31/2022 As at 12/31/2021

Provision Provision Discounte

Item Book value for Carrying Book for Carrying d rate

impairm amount value impairm amount scope

ent ent

Security 104,994,720 - 104,994,720 82,420,256 - 82,420,256

deposits .67 .67 .53 .53


As at 12/31/2022 As at 12/31/2021

Provision Provision Discounte
Item Book value for Carrying Book for Carrying d rate
impairm amount value impairm amount scope
ent ent

Amounts
receivable

by 21,157,915. 21,157,915. 10,681,500 10,681,500 3.43%~5.7
installment 14 - 14 .47 - .47 5%
s for

subcontract
ing
Less:

Unrealized 2,307,476.0 - 2,307,476.0 523,559.76 - 523,559.76

financing 5 5

income

Subtotal 123,845,159 - 123,845,159 92,578,197 - 92,578,197

.76 .76 .24 .24

Less:

Long-term 5,645,605. 5,645,605.

receivables 925,889.24 - 925,889.24 89 - 89

due within
one year

Total 122,919,270 - 122,919,270 86,932,591 - 86,932,591

.52 .52 .35 .35

Note: The closing long-term receivables primarily consisted of security deposits for land rental and
consumption of electricity.

（2）There were no long-term receivables overdue in the Group.

（3）There were no long-term receivables derecognized in the Group in the current period.

（4）There were no such cases in the current period where the Group had transferred a long-term
receivable and continued to be involved in the assets or liabilities associated with that long-term
receivable.

13. Long-term equity investments

Movements during the year Balance of

Investment Other Declared provision
Investee Balance as at Increase in Decrease in income comprehe- Other distribution Provision- Balance as at for
12/31/2021 capital capital recognized nsive equity of cash for Other 12/31/2022 impairment
by equity income movements dividends or impairment as at
method profits 31/12/2022

Associates
Foshan
Haihang
Xingfa

Agriculture 7,033,923.53 - - 1,610,119.27 - - - - - 8,644,042.80 -
and Animal
Husbandry
Development
Co., Ltd.
Guizhou

Fuhai 23,040,528.81 - - 1,555,617.53 - - - - - - -
Chemicals 9,000,000.00 15,596,146.34

Co, Ltd.
Bangpu Seed

Technology 5,797,397.28 5,000,000.00 - -279,186.63 - - - - - 10,518,210.65 -
Co., Ltd.
Qingdao
Nongken

Beidahuang 5,455,271.05 - - - - - - - - - 10,910,542.10
Trade 5,455,271.05

Development
Co., Ltd.
Vietnam

Haid 31,486,405.35 - - 10,806,354.16 2,044,924.67 - - - - 44,337,684.18 -
Yingtaogu
Co., Ltd.


Movements during the year Balance of

Investment Other Declared provision
Investee Balance as at Increase in Decrease in income comprehe- Other distribution Provision- Balance as at for
12/31/2021 capital capital recognized nsive equity of cash for Other 12/31/2022 impairment
by equity income movements dividends or impairment as at
method profits 31/12/2022

Wujiaqu

Taikun Plant 46,082,588.04 - - 13,510,610.16 - - - - - 59,593,198.20 -
Protein Co.,
Ltd
Alar

Ruiliheng -

Biological 59,688,989.63 - - 17,075,222.40 - - 10,948,161.34 - - 65,816,050.69 -
Protein Co.,
Ltd.
Guangzhou
Hengjuchang
Venture

Capital 114,034,142.85 - - 6,053,154.40 - - - - - 120,087,297.25 -
Partnership
(Limited
Partnership)
Sichuan
Zhihui

Fishing 4,000,000.00 - - -627,397.26 - - - - - 3,372,602.74 -
Machine
Technology
Co., Ltd.
Guangdong
Zhongyu

Duck 4,457,265.79 - - -1,643,464.13 - - - - - 2,813,801.66 -
Industry Co.,
Ltd.

Total 301,076,512.33 5,000,000.00 - 48,061,029.90 2,044,924.67 - - - - 315,182,888.17 10,910,542.10
9,000,000.00 26,544,307.68 5,455,271.05

14. Other non-current financial assets

Category As at 12/31/2022 As at 12/31/2021

Equity instrument investments 266,944,754.12 286,569,300.55

15. Investment properties

Item Buildings Land use rights Total

I. Total original book value

1. As at 12/31/2021 29,439,405.76 3,287,481.73 32,726,887.49

2. Additions during the year 1,473,618.53 - 1,473,618.53

(1) Transfer from CIP - - -

(2) Other 1,473,618.53 - 1,473,618.53

3. Decrease during the year 370,772.53 59,508.00 430,280.53

(1) Translation of foreign currency - 59,508.00 59,508.00
financial statements

(2) Other transfers out 370,772.53 - 370,772.53

4. As at 12/31/2022 30,542,251.76 3,227,973.73 33,770,225.49

II. Total accumulated depreciation

or amortization

1. As at 12/31/2021 5,785,874.16 - 5,785,874.16

2. Additions during the year 1,132,742.31 - 1,132,742.31

(1) Depreciation or amortization 943,450.85 - 943,450.85

(2) Other 189,291.46 - 189,291.46

3. Decrease during the year 4,978.96 - 4,978.96

(1) Other transfers out 4,978.96 - 4,978.96

4. As at 12/31/2022 6,913,637.51 - 6,913,637.51

III. Provision for impairment

1. As at 12/31/2021 - - -

2. Additions during the year - - -

3. Decrease during the year - - -

4. As at 12/31/2022 - - -

IV. Carrying amount

1. As at 12/31/2022 23,628,614.25 3,227,973.73 26,856,587.98

2. As at 12/31/2021 23,653,531.60 3,287,481.73 26,941,013.33

Note：There were no Investment properties that had not completed the ownership certificates in current
period.

16. Fixed assets

Item As at 12/31/2022 As at 12/31/2021

Fixed assets 14,933,452,189.00 11,271,962,992.07

Fixed assets pending for disposal - 1,650.00

Total 14,933,452,189.00 11,271,964,642.07

（1）Fixed assets

① Details of fixed assets

Item House and Machinery Transportation Electronic Others Total
building equipment equipment equipment

I. Original book value:

1.As at 12/31/2021 7,441,989,912.6 6,902,911,050.00 361,709,857.18 465,422,769.74 399,553,963.26 15,571,587,552.82
4

2. Additions during the year 2,575,212,466.5 2,035,893,986.2 55,878,474.30 111,309,392.61 161,730,479.90 4,940,024,799.63
6 6

(1) Purchases 169,723,172.80 203,007,020.02 41,770,461.99 76,047,722.29 80,383,224.54 570,931,601.64

(2) Additions due to business 2,376,308,538.2 1,802,717,473.6 12,416,132.37 34,538,510.07 80,319,319.28 4,306,299,973.61
combinations 3 6

(3) Increase in corporation mergers 68,600.00 - - 44,908.00 360,910.00 474,418.00

(4) Others 29,112,155.53 30,169,492.58 1,691,879.94 678,252.25 667,026.08 62,318,806.38

3. Decrease during the year 65,504,617.45 35,756,742.42 15,504,942.06 22,690,406.77 15,555,891.22 155,012,599.92

(1) Disposals or write-offs 65,504,617.45 35,756,742.42 15,504,942.06 22,690,406.77 15,555,891.22 155,012,599.92

(2) Implementation of the new lease - - - - - -
standard transfers out

(3) Decrease due to business combinations - - - - - -

(4) Translation of foreign currency - - - - - -
financial statements.


Item House and Machinery Transportation Electronic Others Total
building equipment equipment equipment

4. As at 12/31/2022 9,951,697,761.7 8,903,048,293.8 402,083,389.42 554,041,755.58 545,728,551.94 20,356,599,752.53
5 4

II. Accumulated depreciation:

1.As at 12/31/2021 1,266,887,533.2 2,428,280,200.0 170,722,470.01 272,800,705.87 160,243,314.46 4,298,934,223.64
3 7

2. Additions during the year 332,251,714.36 667,288,538.46 53,867,433.90 88,102,179.86 76,545,966.07 1,218,055,832.65

(1) Provision 322,859,389.87 654,325,030.09 52,935,709.01 86,981,907.68 76,048,790.14 1,193,150,826.79

(2) Increase in corporation mergers 19,976.29 - - 9,814.16 65,357.83 95,148.28

(3) Translation of foreign currency 2,755,484.84 7,209,947.72 968,156.04 199,445.86 294,936.50 11,427,970.96
financial statements.

(4) Other 6,616,863.36 5,753,560.65 -36,431.15 911,012.16 136,881.60 13,381,886.62

3. Decrease during the year 35,403,735.09 14,970,970.93 13,655,810.43 20,368,273.41 10,289,181.43 94,687,971.29

(1) Disposals or write-offs 35,403,735.09 14,970,970.93 13,655,810.43 20,368,273.41 10,289,181.43 94,687,971.29

(2) Translation of foreign currency - - - - - -
financial statements.

(3) Other - - - - - -

4. As at 12/31/2022 1,563,735,512.5 3,080,597,767.6 210,934,093.48 340,534,612.32 226,500,099.10 5,422,302,085.00
0 0

III. Provision for impairment:

1.As at 12/31/2021 690,337.11 - - - - 690,337.11

2. Additions during the year 77,533.17 15,541.33 280.00 18,464.82 43,322.10 155,141.42

(1) Provision - - - - - -

(2) Increase due to business combinations - - - - - -

(3) Outsourcing 77,533.17 15,541.33 280.00 18,464.82 43,322.10 155,141.42

3. Decrease during the year - - - - - -

(1) Disposals or write-offs - - - - - -


Item House and Machinery Transportation Electronic Others Total
building equipment equipment equipment

(2) Other - - - - - -

4. As at 12/31/2022 767,870.28 15,541.33 280.00 18,464.82 43,322.10 845,478.53

IV. Carrying amount:

1. As at 12/31/2022 8,387,194,378.9 5,822,434,984.9 191,149,015.94 213,488,678.44 319,185,130.74 14,933,452,189.00
7 1

2. As at 12/31/2021 6,174,412,042.3 4,474,630,849.9 190,987,387.17 192,622,063.87 239,310,648.80 11,271,962,992.07
0 3

Temporarily idle fixed assets

②There were no temporarily idle fixed assets in the current period.

③There were no fixed assets leased out under operating leases in the current period.

④Fixed assets without ownership certificates

Item Carrying amount Reason why certificates of ownership are pending

House and building 413,065,520.68 No ownership certificates for rented buildings on collective and state-owned land

House and building 1,437,726,066.21 In progress

（1）Fixed assets pending for disposal

Item As at 12/31/2022 As at 12/31/2021 Reasons for disposals

Other - 1,650.00 They have already been scrapped

17. Construction in progress

Item As at 12/31/2022 As at 12/31/2021

Construction in progress 1,377,352,318.21 1,531,493,842.31


Item As at 12/31/2022 As at 12/31/2021

Construction materials - -

Total 1,377,352,318.21 1,531,493,842.31

（1）Construction in progress

①Details of construction in progress

As at 12/31/2022 As at 12/31/2021

Project Book value Provision for Carrying amount Book value Provision for Book value
impairment impairment

Supporting construction for animal health projects 67,939,417.13 - 67,939,417.13 83,409,772.41 - 83,409,772.41

Supporting construction for feed projects 995,263,895.73 - 995,263,895.73 628,556,718.09 - 628,556,718.09

Supporting construction for farming projects 179,262,339.43 - 179,262,339.43 739,798,951.87 - 739,798,951.87

Supporting construction for butcher projects 108,859,359.30 - 108,859,359.30 52,870,602.27 - 52,870,602.27

Supporting construction for other projects 26,027,306.62 - 26,027,306.62 26,857,797.67 - 26,857,797.67

Total 1,377,352,318.21 - 1,377,352,318.21 1,531,493,842.31 - 1,531,493,842.31

②Movements of major construction in progress

Transfers Transfe Includin Interest
Transfers to rs to Accumulat g: rate for
Project As at Additions Transfers to to Investmen other Other As at ed interest capitaliz-
12/31/2021 fixed assets intangible t real long- decreases 12/31/2022 capitalized capitaliz ation in
assets estate term interest ed in 2022(%)
assets 2022

Supportin

g 605,415,468.4 2,663,286,596. 2,298,747,743. 969,777,120.9 Fundraisin
constructi 4 20 72 20,000.00 157,200.00 - 2 - - - g, self-
on for feed raised
projects


Transfers Transfe Includin Interest
Transfers to rs to Accumulat g: rate for
Project As at Additions Transfers to to Investmen other Other As at ed interest capitaliz-
12/31/2021 fixed assets intangible t real long- decreases 12/31/2022 capitalized capitaliz ation in
assets estate term interest ed in 2022(%)
assets 2022

Supportin
g

constructi 160,117,253.1 167,243,574.5 1,643,139. 1,643,139.4

on for 74,217,551.04 6 7 - - - 67,091,229.63 45 5 4.24 self-raised
animal
health
projects
Supportin
g

constructi 721,669,221.7 877,999,378.4 1,437,546,783. 2,314,207.3 - - 159,807,609.2 - - - self-raised
on for 6 0 60 5 1

farming
projects
Supportin
g

constructi 52,870,602.27 83,058,407.19 28,278,463.00 - - - 107,650,546.4 - - - self-raised
on for 6

butcher
projects
Supportin
g

constructi 26,022,999.62 152,471,027.3 127,864,658.6 17,164,045. 9,488,978. - 23,976,344.50 - - - self-raised
on for 2 5 46 33

other
projects

Total 1,480,195,843. 3,936,932,662. 4,059,681,223. 19,498,252. 9,646,178. - 1,328,302,850. 1,643,139. 1,643,139.4

13 27 54 81 33 72 45 5

Note: There was no provision for impairment of construction in progress in the current period.

18. Productive biological assets

（1）Measured by cost

Animal Aquaculture

Item husbandry Other Total

boar Seed Fingerlin

shrimp g

I. Original book value

1.As at 12/31/2021 573,777,200. 22,242,619. 19,851,097. 3,804,045.8 619,674,962.
38 19 32 6 75

2.Additions during the 511,540,192.3 58,812,222. 19,667,766. 11,380,079. 601,400,261.
year 7 06 95 65 03

(1) Purchase 42,691,812.5 20,197,544. 4,825,950.5 2,929,577.5 70,644,885.4
3 76 9 8 6

(2) Self-cultivated 468,765,365. 38,770,362. 15,843,070. 8,450,502.0 531,829,300.
28 62 38 7 35

(3) Additions due to

translation -

differences in 83,014.56 -155,685.32 1,001,254.0 - -1,073,924.78
foreign currency 2

statements

3. Decrease during the 424,560,665. 58,890,446. 25,037,149. 1,044,201.3 509,532,462.
year 50 04 40 0 24

(1) Disposals 423,493,326. 58,884,467. 24,755,549. 1,044,201.3 508,177,544.
87 04 58 0 79

(2) Other decrease 1,067,338.63 5,979.00 281,599.82 - 1,354,917.45

4.As at 12/31/2022 660,756,727. 22,164,395. 14,481,714. 14,139,924. 711,542,761.5
25 21 87 21 4

IIAccumulated

depreciation

1.As at 12/31/2021 100,644,142. 9,108,561.4 1,187,506.3 248,036.80 111,188,247.1
53 5 3 1

2.Additions during the 199,424,923. 55,480,309. 5,480,855.3 7,809,668.8 268,195,757.
year 82 90 5 9 96

(1) Provision 199,391,866. 55,668,017. 5,480,855.3 7,809,668.8 268,350,408.
45 39 5 9 08

(2) Additions due to

translation

differences in 33,057.37 -187,707.49 - - -154,650.12
foreign currency

statements

3. Decrease during the 115,262,851.9 56,247,800. 4,513,116.8 615,052.26 176,638,821.
year 3 37 8 44

(1) Disposal 115,213,298.3 56,247,800. 4,490,521.6 615,052.26 176,566,672.
1 37 3 57


Animal Aquaculture

Item husbandry Other Total

boar Seed Fingerlin

shrimp g

(2) Other decrease 49,553.62 - 22,595.25 - 72,148.87

4.As at 12/31/2022 184,806,214. 8,341,070.9 2,155,244.8 7,442,653.4 202,745,183.
42 8 0 3 63

III Provision for
impairment

1.As at 12/31/2021 - - - - -

2.Additions during the - - - - -
year

(1) Provision - - - - -

(2) Other increase - - - - -

3. Decrease during the - - - - -
year

(1) Disposals - - - - -

(2) Other decrease - - - - -

4.As at 12/31/2022 - - - - -

IV Carrying amount

As at 12/31/2022 475,950,512. 13,823,324. 12,326,470. 6,697,270.7 508,797,577.
83 23 07 8 91

As at 12/31/2021 473,133,057. 13,134,057. 18,663,590. 3,556,009.0 508,486,715.
85 74 99 6 64

（2）There were no productive biological assets measured at fair value in the current period.

19. Right-of-use assets

Item Land use rights House and Machinery Transportation Electronic Others Total
building equipment equipment equipment

I. Original book value

As at 12/31/2021 1,344,908,959.16 830,720,729.48 359,364,797.16 13,140,345.45 2,214,631.17 36,124,482.47 2,586,473,944.89

Additions during the 327,301,783.46 148,972,799.43 46,201,155.92 5,725,220.90 291,487.49 3,016,912.29 531,509,359.49
year

Rent in 330,446,994.01 148,085,339.41 45,730,686.36 5,725,220.90 291,487.49 3,201,527.65 533,481,255.82

Lease liability -3,100,851.79 137,484.66 1,784,825.36 - - -184,615.36 -1,363,157.13
adjustment

Translation differences

in foreign currency -44,358.76 749,975.36 -1,314,355.80 - - - -608,739.20
statements

Decrease during the 67,346,432.61 94,903,958.04 48,616,668.82 1,052,866.57 128,644.07 4,255,040.72 216,303,610.83
year

Transfer from lease to 17,078,248.38 802,094.98 3,208,379.92 - - - 21,088,723.28
financing lease

Lease termination 50,268,184.23 94,101,863.06 45,408,288.90 1,052,866.57 128,644.07 4,255,040.72 195,214,887.55

Other decrease - - - - - - -

As at 12/31/2022 1,604,864,310.01 884,789,570.87 356,949,284.26 17,812,699.78 2,377,474.59 34,886,354.04 2,901,679,693.55

II.Accumulated

depreciation

As at 12/31/2021 95,372,860.50 105,140,654.35 45,830,506.39 2,354,007.46 552,451.62 5,876,552.14 255,127,032.46

Additions during the 127,792,916.84 133,953,387.57 55,306,435.65 3,968,434.22 779,292.91 7,157,742.99 328,958,210.18
year

Provision 127,785,318.27 133,909,729.62 55,635,024.64 3,968,434.22 779,292.91 7,157,742.99 329,235,542.65

Translation differences

in foreign currency 7,598.57 43,657.95 -328,588.99 - - - -277,332.47
statements

Decrease during the 8,820,837.73 32,695,228.57 11,258,509.87 341,370.24 27,745.84 1,033,960.89 54,177,653.14
year


Item Land use rights House and Machinery Transportation Electronic Others Total
building equipment equipment equipment

Transfer from lease to - 37,936.92 151,747.70 - - - 189,684.62
financing lease

Lease termination 8,820,837.73 32,657,291.65 11,106,762.17 341,370.24 27,745.84 1,033,960.89 53,987,968.52

Other decrease - - - - - - -

As at 12/31/2022 214,344,939.61 206,398,813.35 89,878,432.17 5,981,071.44 1,303,998.69 12,000,334.24 529,907,589.50

III Provision for
impairment

As at 12/31/2021 - - - - - - -

Additions during the - - - - - - -
year

Provision - - - - - - -

Other increase - - - - - - -

Decrease during the - - - - - - -
year

Transfer from lease to - - - - - - -
financing lease

Transfer or hold for sale - - - - - - -

Other decrease - - - - - - -

As at 12/31/2022 - - - - - - -

IV Carrying amount

As at 12/31/2022 1,390,519,370.40 678,390,757.52 267,070,852.09 11,831,628.34 1,073,475.90 22,886,019.80 2,371,772,104.05

As at 12/31/2021 1,249,536,098.66 725,580,075.13 313,534,290.77 10,786,337.99 1,662,179.55 30,247,930.33 2,331,346,912.43

20. Intangible assets

（1）Details of intangible assets

Patented or Software use rights and Other including

Item Land use rights unpatented trademark rights marketing Sea use right Total
technologies network

I. Original book value

1.As at 12/31/2021 1,318,906,603.3 236,277,900.62 293,913,129.27 64,071,447.75 35,479,241.11 1,948,648,322.12
7

2.Additions during the year 191,660,587.18 5,125,530.58 24,450,055.68 254,556.00 - 221,490,729.44

(1) Purchase 186,997,676.05 44,050.00 628,810.64 254,556.00 - 187,925,092.69

(2) Transfers from Internal - 5,081,480.58 - - - 5,081,480.58
R&D

(3) Transfers from - - 23,793,351.46 - - 23,793,351.46
constructions in progress

(4) Translation differences in 4,662,911.13 - 27,893.58 - - 4,690,804.71
foreign currency statements

3. Decrease during the year - - 2,867,210.65 - - 2,867,210.65

(1) Disposals - - 2,867,210.65 - - 2,867,210.65

(2) Decrease due to business - - - - - -
combinations

(3) Translation differences in - - - - - -
foreign currency statement

4. As at 12/31/2022 1,510,567,190.5 241,403,431.20 315,495,974.30 64,326,003.75 35,479,241.11 2,167,271,840.91
5

II.Accumulated depreciation

1.As at 12/31/2021 152,344,228.25 137,885,668.10 127,772,501.81 27,749,423.00 2,169,620.64 447,921,441.80

2.Additions during the year 34,196,391.01 9,711,768.63 31,714,549.33 2,873,367.35 13,001,056.45 91,497,132.77

(1) Provision 32,327,476.16 9,711,768.63 31,714,549.33 2,873,367.35 13,001,056.45 89,628,217.92

(2) Purchase 1,868,914.85 - - - - 1,868,914.85

3. Decrease during the year - - 1,953,793.78 - - 1,953,793.78


Patented or Software use rights and Other including

Item Land use rights unpatented trademark rights marketing Sea use right Total
technologies network

(1) Disposals - - 1,953,793.78 - - 1,953,793.78

(2) Decrease due to business - - - - - -
combinations

(3) Translation differences in - - - - - -
foreign currency statements

4. As at 12/31/2022 186,540,619.26 147,597,436.73 157,533,257.36 30,622,790.35 15,170,677.09 537,464,780.79

III. Provision for impairment

1.As at 12/31/2021 - 10,307,844.71 - - - 10,307,844.71

2.Additions during the year - - - - - -

(1) Provision - - - - - -

(2) Other increase - - - - - -

3. Decrease during the year - - - - - -

(1) Disposals - - - - - -

(2) Other decrease - - - - - -

4. As at 12/31/2022 - 10,307,844.71 - - - 10,307,844.71

IV. Carrying amount

1.As at 12/31/2022 1,324,026,571.2 83,498,149.76 157,962,716.94 33,703,213.40 20,308,564.02 1,619,499,215.41
9

2.As at 12/31/2021 1,166,562,375.1 88,084,387.81 166,140,627.46 36,322,024.75 33,309,620.47 1,490,419,035.61
2

Note: The carrying amount of intangible assets arising from internal research and development is 8.72% of the total carrying amount of intangible assets at the period end.
（2）Land use rights without ownership certificates

Item Carrying amount Reason why certificates of ownership are pending

Land use rights 8,753,463.60 In progress

21. Development costs

Additions during Decrease during

As at the year the year As at
Project 12/31/2021 Internal Recognized Recognized 12/31/2022
development Others as intangibl in profit or

e assets loss

Development of

animal healthcare

products and 5,856,674.62 1,746,156.08 - 5,081,480.58 - 2,521,350.12
healthy

cultivation

models

Development of

domestic animal - 5,038,255.53 - - - 5,038,255.53
selected farming

technology

Application and

Development of - 10,462,527.02 - - - 10,462,527.02
FeedAdditives

Development of

comprehensive 97,087.38 786,881.75 - - - 883,969.13
platform

Total 5,953,762.00 18,033,820.38 - 5,081,480.58 - 18,906,101.80

22. Goodwill

（1）Book value of goodwill

Additions Decrease during

during the the year

year

Name of investee As at Effect of As at
12/31/2021 Business translation 12/31/2022
Combination Disposals of foreign

currency

statement

Guangzhou Runchuan 50,000.00 - - - 50,000.00

Taizhou Haid 578,247.88 - - - 578,247.88

Guangzhou Haihe 76,663.70 - - - 76,663.70

Dongguan Haid 2,831,241.61 - - - 2,831,241.61

Sanshuifanling 4,841,934.68 - - - 4,841,934.68

Dalian Haid 32,178.11 - - - 32,178.11

Qingyuan Bairong 1,218,130.86 - - - 1,218,130.86

Zhanjiang Hiseno 4,100,845.79 - - - 4,100,845.79

PANASIA TRADING 40,058,457.04 - - - 43,758,509.65
RESOURCES LIMITED 3,700,052.61

SHENG LONG BIO-

TECH 5,164,611.81 - - -477,036.23 5,641,648.04
INTERNATIONAL

CO.,LTD（Note 2）

Kaifeng Haid 8,838,854.56 - - - 8,838,854.56


Additions Decrease during

during the the year

year

Name of investee As at Effect of As at
12/31/2021 Business translation 12/31/2022
Combination Disposals of foreign

currency

statement

Guangzhou Heshengtang 127,116.22 - - - 127,116.22
Pharmaceutical

Haid Livestock Veterinary 5,809,578.76 - - - 5,809,578.76
Research Institute

Hunan Innovation 19,210,769.76 - - - 19,210,769.76

Sichuan Hailinger 76,410,471.64 - - - 76,410,471.64

Jiaxing Haid 8,312,415.28 - - - 8,312,415.28

Rongcheng Yandunjiao 33,087.10 - - - 33,087.10

Shandong Daxin 115,902,036.20 - - - 115,902,036.2
0

Hunan Jinhuilong 2,400,475.64 - - - 2,400,475.64

Feicheng & Ruifeng 57,092,523.20 - - - 57,092,523.20

Weifang Xuheng 30,507,361.78 - - - 30,507,361.78

Jianong Lianyungang 587,209.55 - - - 587,209.55

KEMBANG SUBUR 318,663.10 - - -29,433.74 348,096.84
INTERNATIONAL LTD.

Gaotang Huayu 1,455,358.51 - - - 1,455,358.51

Zhongshan Yugezhi 9,620,427.34 - - - 9,620,427.34

Gaozhou Haiyuan 2,799,980.27 - - - 2,799,980.27

Yunnan Zhonggui 3,088,765.62 - - - 3,088,765.62

Taiwan Shenlong 2,606,564.30 - 2,606,564.30 - -

Qingdao Runguiyuan 220,674.27 - - - 220,674.27

CORESEED

AQUACULTURE(GUA 4,664,016.08 - 4,664,016.08 - -
M) CORPORATION

Hainan Zhuangmei 1,999,796.32 - - - 1,999,796.32

Jiangxi Jiabo 17,826,753.49 - - - 17,826,753.49

Jiangmen Debao 24,182,145.13 - - - 24,182,145.13

Ganzhou Lianduoli 4,228,394.10 - - - 4,228,394.10

Total 457,195,749.70 - 7,270,580.38 - 454,131,691.9
4,206,522.58 0

Note 1: When acquiring the non-controlling interests of a subsidiary, the Company records goodwill at the
amount by which the paid combination cost exceeds the Company’s share of the fair value of the acquiree’s
identifiable net assets obtained in the combination, and changes in the current period include the effect of
translation of foreign currency statement after the investment of goodwill generated by the acquisition of
overseas subsidiaries

Note 2: HISENOR VIET NAM AQUATIC BREEDING CO., LTD was absorbed by SHENG LONG BIO-
TECH INTERNATIONALCO.,LTD during the year.


（2）Provision for impairment of goodwill

Additions

during the Decreases during the year

Name of investee or year

events from which As at 12/31/2021 Effect of As at
goodwill arose translation 12/31/2022
Provision Disposal of foreign

currency

statement

Guangzhou 50,000.00 - - - 50,000.00
Runchuan

Guangzhou Haihe 76,663.70 - - - 76,663.70

SHENG LONG

BIO-TECH 5,164,611.81 - - -477,036.23 5,641,648.04
INTERNATIONAL

CO.,LTD

Hunan Innovation 4,038,440.41 - - - 4,038,440.41

Sichuan Hailinger 76,410,471.64 - - - 76,410,471.6
4

Shandong Daxin 3,328,423.01 - - - 3,328,423.01

Feicheng & Runfeng - 15,128,355.6 - - 15,128,355.6
7 7

Weifang Xuheng - 14,300,670.1 - - 14,300,670.1
4 4

KEMBANG

SUBUR 318,663.10 - - -29,433.74 348,096.84
INTERNATIONAL

LTD.

Jianong 587,209.55 - - - 587,209.55
Lianyungang

Taiwan Shenlong 2,606,564.30 - 2,606,564.3 - -
0

Total 92,581,047.52 29,429,025.8 2,606,564.3 -506,469.97 119,909,979.0
1 0 0

Note: The Group calculates the recoverable amounts by discounting the expected future cash flows, which
was prepared by management based on the past performance and expectation for future market development
within the next 5 years, and the cash flow growth rate adopted for subsequent years is expected to be 0.00%
(previous period: 0.00%). As of December 31, 2022, according to the impairment test results, the Group
recognized provision for impairment of goodwill of RMB 119,909,979.00 (At the end of previous period:
92,581,047.52).
23. Long-term deferred expenses

As at Additions Decreases during the year As at
Item 12/31/2021 during the year Amortization Other 12/31/2022
for the year decreases

Rental expense 1,550,254.07 200,941.68 311,850.89 24,792.84 1,414,552.02

Expense on

obtaining

operation 6,274,699.45 421,219.01 1,802,932.24 - 4,892,986.22
rightsofcontracted

asset


As at Additions Decreases during the year As at
Item 12/31/2021 during the year Amortization Other 12/31/2022
for the year decreases

Improvement and 115,929,373.1 101,108,038.0 3,640,234.28

decoration expense 9 3 49,189,491.25 164,207,685.69

Other 11,239,445.88 7,209,201.27 5,503,145.58 61,311.88 12,884,189.69

Total 134,993,772.5 108,939,399.9 56,807,419.96 3,726,339.00 183,399,413.62
9 9

24. Deferred tax assets and deferred tax liabilities

(1) Deferred tax assets and deferred tax liabilities not offsetting

As at 12/31/2022 As at 12/31/2021

Deductible or Deferred tax Deductible or Deductible or
Item taxable assets/ taxable taxable
temporary deferred tax temporary temporary
differences liabilities differences differences

Deferred tax assets:

Loss of credit impairment 275,968,248.03 66,087,983.52 251,058,671.80 54,752,960.81

Provisions for impairment 36,072,813.20 8,579,536.09 46,594,467.98 10,251,471.81
of assets

Organization cost 29,904,713.68 6,224,304.01 19,096,620.17 4,772,906.77

Depreciation 6,968,133.18 910,957.48 11,112,534.02 1,416,265.51

Amortization 81,296.08 20,324.04 406,481.20 101,620.30

Deductible losses 2,184,320,203.43 447,651,553.99 2,484,092,849.09 464,063,127.46

Accrued expense 125,381,614.75 15,060,568.78 133,114,460.93 19,564,221.62

Unrealized profits of intra- 280,407,870.37 59,912,897.43 148,587,810.16 32,800,086.64
group transactions

Amortization 50,051,128.80 12,161,047.32 44,174,431.17 6,751,652.68

Deductible losses 155,094,076.50 32,600,844.20 150,164,889.86 32,725,004.15

Accrued expense 230,255,789.29 40,274,956.33 199,724,019.15 37,084,081.17

Unrealized profits of intra- 47,481,976.07 7,122,296.41 138,403,577.97 20,760,536.70
group transactions

Advertising expense 12,099,316.27 3,016,187.56 16,401,777.38 4,090,066.99

Accrued tax deduction 308,798,901.13 46,319,835.17 300,000,489.33 45,000,073.40

Subtotal 3,742,886,080.78 745,943,292.33 3,942,933,080.21 734,134,076.01

Deferred tax liabilities:

Gain/Loss on movements in 29,084,922.12 3,135,037.28 2,507,784.13 234,353.81
fair value

Depreciation 526,050,437.97 113,203,197.77 493,269,779.11 103,786,749.84

Amortization 13,296,678.41 2,175,831.68 19,078,785.17 2,969,482.24

Increase in value upon 256,262,353.19 55,830,552.45 255,887,769.01 60,271,484.21
valuation

Expected profits to be

distributed by overseas 308,798,901.13 46,319,835.17 73,338,943.73 11,000,841.56
subsidiaries


As at 12/31/2022 As at 12/31/2021

Deductible or Deferred tax Deductible or Deductible or

Item taxable assets/ taxable taxable

temporary deferred tax temporary temporary

differences liabilities differences differences

Other 73,850,737.53 11,077,610.63 42,173,594.00 6,326,039.10

Subtotal 1,207,344,030.35 231,742,064.98 886,256,655.15 184,588,950.76

(2) Details of unrecognized deferred tax assets

Item As at 12/31/2022 As at 12/31/2021

Deductible losses 398,842,118.67 172,056,579.14

Provision for impairmentof assets 17,325,869.47 5,738,852.95

Employee compensation 21,462,458.35 6,881,780.62

Total 437,630,446.49 184,677,212.71

（3）Expiration of deductible tax losses for unrecognized deferred tax assets

Year As at 12/31/2022 As at 12/31/2021 Note

2022 —— 5,733,389.42

2023 17,139,807.43 11,340,155.67

2024 15,356,172.30 12,085,351.59

2025 75,300,644.47 60,947,474.34

2026 106,565,960.38 81,950,208.12

2027 184,479,534.09 ——

Total 398,842,118.67 172,056,579.14

25. Other non-current assets

As at 12/31/2022 As at 12/31/2021

Item Book balance Impairment Book value Book balance Impairment Book value
provision provision

Prepayments
for

equipment 131,068,641.89 - 131,068,641.89 338,945,719.58 - 338,945,719.58
and
constructions
Prepayments
for

acquisition 62,001,878.93 - 62,001,878.93 111,879,324.50 - 111,879,324.50
of other

long-term
assets

Total 193,070,520.82 - 193,070,520.82 450,825,044.08 - 450,825,044.08

26. Short-term loans


（1）Short-term loans by category

Item As at 12/31/2022 As at 12/31/2021

Credit loan 2,674,183,883.00 3,401,836,775.53

Guaranteed loan 233,314,100.00 271,073,822.74

Pledged loans - 34,425,546.08

Mortgage loan / Guaranteed loan - 75,000,000.00

Bill discounted 3,311,269.56 -

Total 2,910,809,252.56 3,782,336,144.35

Note: Unsecured loans included guaranteed loans provided by inter-group members.

（2）There were no overdue short-term loans as of the end of current period.

27. Held-for-trading financial liabilities

Item As at 12/31/2022 As at 12/31/2021

Held-for-trading financial liabilities 46,533,780.00 44,174,431.17

Including: Derivative financial liabilities 46,533,780.00 44,174,431.17

Total 46,533,780.00 44,174,431.17

28. Notes payable

Item As at 12/31/2022 As at 12/31/2021

Commercial acceptance notes 2,122,850,987.41 160,241,147.92

Bank acceptance notes 1,379,357,530.92 246,849,830.66

Total 3,502,208,518.33 407,090,978.58

Note: There were no overdue notes payable as of the end of current period.

29. Accounts payable

Item As at 12/31/2022 As at 12/31/2021

Accounts payable with aging within one 5,165,514,814.36 3,960,076,033.40
year

Accounts payable with aging over one year 175,664,621.89 91,628,304.64

Total 5,341,179,436.25 4,051,704,338.04

Note: There were no significant accounts payable with aging over one year.

30. Advances from customers

Item As at 12/31/2022 As at 12/31/2021

Rent 3,922,795.42 69,917.84

31. Contract liability

Item As at 12/31/2022 As at 12/31/2021

Advances from customers 1,720,519,173.21 1,908,259,980.27


Item As at 12/31/2022 As at 12/31/2021

Less: Contract liabilities included in other - -
non-current liabilities

Total 1,720,519,173.21 1,908,259,980.27

32. Employee benefits payable

As at Accrued Decreased As at
Item 12/31/2021 during the during the 12/31/2022
year year

Short-term employee benefits 1,211,576,195. 5,016,214,492. 4,820,716,434. 1,407,074,253.
49 10 21 38

Post-employment benefits - 1,227,887.55 207,046,639.12 206,618,819.16 1,655,707.51
defined contribution plans

Termination benefits 7,000.00 16,927,583.57 16,052,144.77 882,438.80

Other benefits due within one - - - -
year

Total 1,212,811,083. 5,240,188,714. 5,043,387,398. 1,409,612,399.
04 79 14 69

（1）Short-term employee benefits

As at Accrued Decreased

Item 12/31/2021 during during As at 12/31/2022
the year the year

Salaries, bonus, 946,601,921.99 4,388,174,631.48 4,243,640,290.39 1,091,136,263.08
allowances

Staff welfare 8,748,714.30 169,738,251.55 166,441,191.36 12,045,774.49

Social insurances 630,381.32 115,496,256.07 115,941,232.32 185,405.07

Including: 1. Medical 524,432.04 98,923,756.10 99,356,382.41 91,805.73
insurance

2. Work-related injury 49,428.76 7,164,179.16 7,155,364.56 58,243.36
insurance

3. Maternity insurance 9,458.72 2,203,877.18 2,201,853.74 11,482.16

4. Serious disease 47,061.80 7,204,443.63 7,227,631.61 23,873.82
subsidies

Housing Fund 96,201.33 43,058,657.20 43,015,436.84 139,421.69

Labor union fees 1,108,874.28 8,122,105.94 7,994,629.90 1,236,350.32

Staff and workers’ 1,841,637.41 10,182,646.61 11,521,250.71 503,033.31
education fee

Short-term profit - sharing 252,548,464.86 281,441,943.25 232,162,402.69 301,828,005.42
plan

Total 1,211,576,195.49 5,016,214,492.10 4,820,716,434.21 1,407,074,253.38

（2）Defined contribution plans

As at Accrued Decreased As at
Item 12/31/2021 during the during the 12/31/2022
year year

Post-employment benefits 1,227,887.55 207,046,639.12 206,618,819.16 1,655,707.51


As at Accrued Decreased As at
Item 12/31/2021 during the during the 12/31/2022
year year

Including: 1. Basic pension 643,308.40 200,753,606.02 199,784,707.69 1,612,206.73
insurance

2. Unemployment insurance 230,685.17 6,293,033.10 6,480,217.49 43,500.78

3.Annuity 353,893.98 - 353,893.98 -

Total 1,227,887.55 207,046,639.12 206,618,819.16 1,655,707.51

33. Taxes payable

Item As at 12/31/2022 As at 12/31/2021

VAT 12,462,506.29 7,779,320.30

City construction tax 477,641.20 559,994.75

Corporate income tax 150,747,448.70 209,159,774.37

Individual income tax 22,035,819.03 7,936,147.31

Property tax 6,836,833.30 4,902,932.07

Stamp tax 12,543,670.05 6,129,596.09

Educational surcharges 429,867.18 461,724.92

Land use tax 3,038,500.74 2,871,638.66

Environmental protection tax 423,954.50 288,620.72

Water resource tax 247,227.30 415,144.50

Tax withheld 1,168,090.73 318,352.50

Others 416,887.32 597,762.00

Total 210,828,446.34 241,421,008.19

34. Other payables

Item As at 12/31/2022 As at 12/31/2021

Interests payable - -

Dividends payable 3,279,944.00 21,827,574.34

Other payables 465,456,374.76 406,084,916.42

Total 468,736,318.76 427,912,490.76

(1) Dividends payable

Item As at 12/31/2022 As at 12/31/2021

Dividends payable to non-controlling 3,279,944.00 21,827,574.34
interests

(2) Other payables

Item As at 12/31/2022 As at 12/31/2021

Security deposits 324,136,553.24 279,761,675.69

Petty cash 9,226,075.12 8,134,364.45

Rents 29,046,714.16 14,429,586.38


Item As at 12/31/2022 As at 12/31/2021

Payables for equity transfer 7,638,716.74 10,936,376.84

Payables to external parties 89,973,758.84 90,015,880.55

Other 5,434,556.66 2,807,032.51

Total 465,456,374.76 406,084,916.42

Significant other payables aging over 1 year:

Item As at 31/12/2022 Reason for no repayment

Security deposits 21,945,561.82 execution of contract unfinished

Intercourse funds of external company 8,003,442.94 the agreed payment time unmet

Total 29,949,004.76 ——

35. Non-current liabilities due within one year

Item As at 12/31/2022 As at 12/31/2021

Long-term payables due within one year 935,157,182.09 286,549,804.00

Long-term loan due within one year 12,700,230.98 -

Lease liability due within one year 310,640,401.87 277,374,040.74

Total 1,258,497,814.94 563,923,844.74

（1）Long-term loan due within one year

Item As at 12/31/2022 As at 12/31/2021

Unsecured loans 935,157,182.09 286,549,804.00

Note: Unsecured loans include loans provided as guarantees between internal members of the group.

（2）Long-term payables due within one year

Item As at 12/31/2022 As at 12/31/2021

Security deposits 100,000.00 -

Sea area usage fee 3,374,282.08 -

Other 9,225,948.90 -

Total 12,700,230.98 -

36. Other current liabilities

Item As at 12/31/2022 As at 12/31/2021

Water and electricity 76,485,710.23 58,272,401.30

Steam or other fuel or power charges 38,682,228.89 30,596,246.43

Transportation and warehousing charges 25,391,165.59 20,836,999.97

Office and meeting service charges 22,719,072.82 20,794,779.42

Travel charges 16,970,098.73 16,648,744.60

Rents 1,863,857.40 819,293.09

Steam or other fuel or power charges 16,546,669.62 15,165,841.87


Item As at 12/31/2022 As at 12/31/2021

Transportation and warehousing charges 3,255,888.85 1,654,085.59

Office and meeting service charges 10,461,949.12 11,727,720.96

Travel charges 3,645,503.08 2,601,318.44

Entrusted cultivation charges 245,383,230.15 174,131,977.32

Output VAT to be transferred 22,738,049.75 19,110,662.27

Guarantee compensation reserve 18,385,511.11 3,830,141.95

Hedgeditems -procurementcommitmentsand 18,733,646.90 -
foreign exchange forwards

Other 38,435,890.00 22,532,041.75

Total 559,698,472.24 398,722,254.96

37. Long-term loans

Item As at Interest rate As at Interest rate
12/31/2022 12/31/2021

Unsecured loans 6,001,564,381. 1.59%~4.61% 4,697,657,687. 1.34%~7.90%
51 25

Subtotal 6,001,564,381. 4,697,657,687.

51 25

Less: long-term loans due within 935,157,182.09 286,549,804.00

one year

Total 5,066,407,199. 4,411,107,883.

42 25

Note: Unsecured loans included guaranteed loans provided by inter-group members

38. Lease liability

Item As at 12/31/2022 As at 12/31/2021

Lease liability 2,432,879,154.33 2,353,217,376.05

Less: unrecognized financing costs 511,812,331.16 497,096,947.12

Subtotal 1,921,066,823.17 1,856,120,428.93

Less: lease liability due within one 310,640,401.87 277,374,040.74
year

Total 1,610,426,421.30 1,578,746,388.19

Note: During 2022, the interest expense of lease liabilities is RMB 81.6217 million, which is included in the
financial expense - unrecognized financing costs.

39. Long-term payables

Item As at 12/31/2022 As at 12/31/2021

Long-term payables 53,910,873.61 53,886,898.67

Special payables - -

Total 53,910,873.61 53,886,898.67


(1) Long-term payables

Item As at 12/31/2022 As at 12/31/2021

Guarantee deposit 7,555,433.97 5,651,897.07

Obligations under equity transfers 5,000,000.00 5,000,000.00

Sea use right fee 36,446,248.53 39,280,000.14

Other payables 28,430,116.95 15,600,000.00

Less: Unrecognized financing costs 10,820,694.86 11,644,998.54

Subtotal 66,611,104.59 53,886,898.67

Less: long-term payables due within one year 12,700,230.98 -

Total 53,910,873.61 53,886,898.67

40. Long-term employee benefits payable

Item As at 12/31/2022 As at 12/31/2021

Post-employment benefits-net liabilities of defined benefit plans - -

Dismissal benefits - -

Long-term profit sharing plans 494,786,634.21 420,901,373.76

Subtotal 494,786,634.21 420,901,373.76

Less: Long-term employee benefits payable due within one year 301,828,005.42 252,548,464.86

Total 192,958,628.79 168,352,908.90

41. Deferred income

Item As at Additions Reductions As at Reason for
12/31/2021 during the year during the year 12/31/2022 deferral

Government Receipt of
grant 283,291,613.62 77,068,870.13 60,831,767.35 299,528,716.40 government
grant

Rent income 3,119,987.42 - 3,119,987.42 -

Total 286,411,601.04 77,068,870.13 63,951,754.77 299,528,716.40

Note: For the government grant which was recognized as deferred income, refer to Note V. 70. Government
grant.
42. Other non-current liabilities

Item As at 12/31/2022 As at 12/31/2021

Unearned rent 145,885.76 -

43. Share capital (Unit: share)

Movements during the year (+, -) As at 12/31/2022
Item As at 12/31/2021 New Bonus New Bonus New Bonus
issuance issuance issuance issuance issuance issuance

Total 1,661,161,061.00 - - - - - 1,661,161,061.00
shares
44. Capital reserve


Item As at 12/31/2021 Additions during Reductions As at 12/31/2022
the year during the year

Share premium 4,504,736,307.82 14,457,530.07 43,818,014.75 4,475,375,823.14
(Note 1)

Other capital 623,002,030.81 211,328,660.37 9,645,436.35 824,685,254.83
reserves (Note 2)

Total 5,127,738,338.63 225,786,190.44 53,463,451.10 5,300,061,077.97

Note:

(1) The current increase or decrease in capital stock premium is the difference between the amount received
or paid by the minority shareholder equity exchange and the share of net assets of the subsidiary enjoyed
at the time of transfer.

(2) The increase in other capital reserves in the current period is the portion of the equity settled share-based
payment amount implemented in the equity incentive plan that belongs to the parent company (see Note
V. 11 for details). The decrease in this period is mainly due to the adjustment of other capital reserve
funds where the deductible amount before tax for equity incentives exceeds the recognized cost.

45. Treasury stock

Item As at 12/31/2021 Additions during Reductions during As at 12/31/2022
the year the year

Repurchase stock 792,321,152.16 - - 792,321,152.16

46. Other comprehensive income

Other comprehensive income attributable to the parent company in the balance sheet：

Movements during the year

Less: previously

Item As at 12/31/2021 Before-tax recognized As at
amount amount 12/31/2022
transferred to

profit or loss

I.Items that will not be

reclassified to profit or - - - -
loss

II.Items that may be

reclassified to profit or -144,698,175.60 444,747,944.05 - 300,049,768.45
loss

1. Cash flow hedging - 343,105,696.10 - 343,105,696.10
reserves

2.Translationdifferencesin

foreign currency financial -144,698,175.60 101,642,247.95 - -43,055,927.65
statement

Other comprehensive -144,698,175.60 444,747,944.05 - 300,049,768.45
income total

Other comprehensive income attributable to the parent company in the income statement:


Movements during the year

Less:

previously

recorded in Less:After

other Less: tax After tax
Item Before-tax comprehensive Income attributable attributable to
amount income and tax to minority the parent
transferred to expenses shareholders company
profit or loss

in the current

period

I.Items that will not be

reclassified to profit or

loss

II.Items that may be -

reclassified to profit or 435,781,170.46 - - 8,966,773.59 444,747,944.05
loss

1. Cash flow hedging 343,105,696.10 - - - 343,105,696.10
reserves

2. Translation differences -

in foreign currency 92,675,474.36 - - 8,966,773.59 101,642,247.95
financial statement

Other comprehensive 435,781,170.46 - - - 444,747,944.05
income total 8,966,773.59

Note: The net amount of other comprehensive income after tax incurred in the current period is RMB
435,781,170.46.Amongthem,thenetamountofothercomprehensiveincomeattributabletotheshareholders
of the parent company after tax incurred in the current period is RMB 444,747,944.05; the net amount after
tax of other comprehensive income attributable to minority shareholders in the current period is RMB-
8,966,773.59.
47. Surplus reserve

Item As at 12/31/2021 Additions Reductions As at 12/31/2022
during the year during the year

Statutory surplus reserve 746,430,806.85 84,149,723.65 - 830,580,530.50

Discretionary surplus - - - -
reserve

Total 746,430,806.85 84,149,723.65 - 830,580,530.50

Note: Per the Company’s Articles of Association, 10% of its net income in 2022, i.e. RMB 84,149,723.65,
was appropriated to statutory surplus reserves

48. General risk preparation

Item As at 12/31/2021 Additions Reductions As at 12/31/2022
during the year during the year

General risk allowance 9,005,028.55 - 4,170,124.55 4,834,904.00

49. Retained earnings

Amount in Amount in Appropriation
Item current period previous period or distribution
percentage

Retained earnings as at 12/31/2021 (before 7,894,011,164.8 6,895,016,817.2 --
adjustment) 2 6


Amount in Amount in Appropriation
Item current period previous period or distribution
percentage

Total adjustments for opening retained - - --
earnings(“+” for increase; “–” for decrease)

Retained earnings as at 01/01/2022 (after 7,894,011,164.8 6,895,016,817.2

adjustment) 2 6

Add: Net profits for the year attributable to 2,954,142,403.3 1,636,237,735.8 --
shareholders of the Company 4 5

Less: Appropriation for statutory surplus 84,149,723.65 107,767,906.45 10%
reserve

Appropriation for discretionary surplus reserve - -

Appropriation for general risk preparation -4,170,124.55 1,191,016.88

Dividends converted to general share capital 247,633,342.95 528,284,464.96

Retained earnings as at 12/31/2022 10,520,540,626. 7,894,011,164.8

11 2

Note: Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and related
new regulations, the retained earnings at the beginning of the period were affected by RMB 39,757,161.98.
The impactof changesin accounting policies on retained earnings atthe beginning of the period can be found
in Note III. 38.

50. Operating income and operating cost

(1) Operating income and operating cost

2022 2021

Item Income Cost Income Cost

Principal activities 104,609,239,672.05 94,975,445,630.46 85,876,676,425.89 78,709,850,624.99

Other operating 106,177,813.87 28,134,469.77 215,285,113.24 83,019,711.78
activities

Total 104,715,417,485.92 95,003,580,100.23 86,091,961,539.13 78,792,870,336.77

(2) Operating income and operating cost by products

Main product 2022 2021

category Income Cost Income Cost

Feed sales 84,892,419,774.0 78,060,758,981.9 69,825,872,761.9 63,485,844,564.1
7 5 5 6

Animal protection 1,044,659,775.65 535,805,808.94 892,463,422.53 438,660,889.58
products sales

Agricultural sales 12,455,629,441.6 10,354,911,388.6 8,722,662,938.06 8,654,219,900.85
5 3

Trade business 6,167,203,348.23 6,023,530,323.85 6,389,973,548.31 6,131,124,456.61

Other 155,505,146.32 28,573,596.86 260,988,868.28 83,020,525.57

Total 104,715,417,485. 95,003,580,100.2 86,091,961,539.1 78,792,870,336.7
92 3 3 7

(3) Operating income break down information


2022

Sales of goods Other Total

Operating income from 104,559,912,339.60 49,327,332.45 104,609,239,672.05
principal activities

Including: Satisfied at a 104,559,912,339.60 - 104,559,912,339.60
point in time

Satisfied over time - 49,327,332.45 49,327,332.45

Operating income from - 106,177,813.87 106,177,813.87
other operating activities

Including: Satisfied at a - 83,082,108.57 83,082,108.57
point in time

Satisfied over time - - -

Operating income from - 23,095,705.30 23,095,705.30
leases

Total 104,559,912,339.60 155,505,146.32 104,715,417,485.92

51. Taxes and surcharges

Item 2022 2021

Urban maintenance and construction 5,093,481.64 5,282,074.85
tax

Educational surcharge and Local 4,006,079.50 4,320,471.74
educational surcharge

Stamp duty 56,295,735.80 44,738,760.42

Property tax 36,145,169.11 29,477,994.15

Land usage tax 15,625,234.11 14,919,767.48

Environmental protection tax 1,604,112.87 1,284,966.81

Embankment protection cost 1,890,724.63 1,449,449.44

Other 2,607,693.02 1,640,815.39

Total 123,268,230.68 103,114,300.28

Note: For the criteria of taxes and surcharges accrued and paid, please refer to Note IV. Taxation

52. Selling and distribution expenses

Item 2022 2021

Employee compensation 1,482,738,666.62 1,310,979,391.37

Travel expense 252,806,732.56 229,784,464.34

Business promotion expense 139,825,359.25 124,335,981.79

Equity incentive expense 42,154,913.32 51,196,825.86

Other 63,461,396.48 91,952,600.95

Total 1,980,987,068.23 1,808,249,264.31

53. General and administrative expenses

Item 2022 2021

Employee compensation 1,589,278,406.89 1,379,213,594.56


Item 2022 2021

Travel expense 92,657,962.86 94,103,129.02

Office expense 511,922,443.74 408,397,999.32

Training and consulting service charges 81,058,612.74 125,518,517.05

Equity incentive expense 139,024,865.82 115,219,280.20

Other 169,872,934.71 106,069,318.44

Total 2,583,815,226.76 2,228,521,838.59

54. Research and development expenses

Item 2022 2021

Employee compensation 433,776,962.76 320,395,769.58

Materials 94,505,156.07 131,013,721.71

Travel expense 33,307,843.10 27,087,999.81

Office expense 100,994,669.97 84,317,580.88

Training and consulting service charges 10,130,093.83 1,891,862.39

Expense on R&D entrusted to external parties 6,258,201.21 5,254,662.92

Equity incentive expense 30,003,920.43 33,182,243.90

Other 2,258,642.76 1,876,350.85

Total 711,235,490.13 605,020,192.04

55. Financial expenses

Item 2022 2021

Total interest expenses 493,321,918.85 319,824,182.96

Less: Interest income 47,519,969.08 29,932,608.81

Add: Net exchange losses/gains 11,010,010.53 14,219,078.21

Add: Unrecognized financing 81,621,735.49 68,346,385.86
costs

Add: Bank charges 58,330,386.82 30,431,615.10

Total 596,764,082.61 402,888,653.32

56. Other income

Item 2022 2021

Government grant 134,749,089.80 87,450,747.06

Other items arising in the dailyoperating activities 8,329,314.23 3,420,851.26
that should be charged directly to other income

Total 143,078,404.03 90,871,598.32

Note: For the details of government grant, refer to Note V. 70. Government grant.

57. Investment income


Item 2022 2021

Income from long-term equity investments accounted for using the 47,855,406.41 -1,557,102.23
equity method

Investment income from disposal of long-term equity investments -5,963,295.45 1,477,701.25

Investment income from holding held-for-trading financial assets 7,465,210.66 5,544,191.97

Interest income from debt investments 530,942.74 575,906.52

Investment income from holding other non-current financial assets 16,905,664.74 2,385,359.37

Investment income from disposal of other non-current financial assets - -17,653.12

Investment income from disposal of held-for-trading financial assets 201,589,342.10 377,874,802.86

Financialassets measuredatamortizedcostceasetorecognizeearnings -1,262,095.66 -1,432,052.45

Total 267,121,175.54 384,851,154.17

58. Gains/ (losses) from changes in fair value

Source of the changes in fair value 2022 2021

Held-for-trading financial assets 11,233,447.63 85,867,798.79

Held-for-trading financial liabilities -32,445,293.88 -38,761,796.62

Including: Financial liabilities measured at fair value - -
through profit or loss

Hedging instrument-Changes in fair value of - 9,924,958.83
derivatives instruments with invalid hedging

Other non-current financial assets -4,737,266.30 -

Including: Financial assets measured at fair value - -
through profit or loss

Total -25,949,112.55 47,106,002.17

59. Credit impairment losses ("-" for losses)

Item 2022 2021

Loss allowance on accounts receivable -133,025,192.76 -66,565,498.21

Loss allowance on loans and factoring -3,770,284.95 -17,811,451.41

Loss allowance on guarantee -15,029,658.22 -3,020,221.93

Total -151,825,135.93 -87,397,171.55

60. Impairment losses ("-" for losses)

Item 2022 2021

Impairment losses on inventories -16,984,381.62 -63,513,807.87

Impairment losses on long-term equity investments -5,455,271.05 -5,455,271.05

Impairment losses on goodwill -29,429,025.81 -3,225,507.07

Total -51,868,678.48 -72,194,585.99

61. Gains from assets disposal ( "-" for losses)

Item 2022 2021

Gains from disposals of fixed assets 1,142,121.34 799,049.44


Item 2022 2021

Gains from disposals of intangible assets - 3,338.04

Gains from disposals of right-of-use assets 5,580,762.47 -154,916.51

Total 6,722,883.81 647,470.97

62. Non-operating income

Amount included in
Item 2022 2021 non-recurring gains
or losses for the
current year

Gain on disposal of non-current

assets resulted from damage or 310,096.64 6,708.92 310,096.64
obsolescence

Insurance compensation 12,676,185.71 830,745.42 12,676,185.71

Debt repayment income 7,506,366.68 8,985,292.75 7,506,366.68

Negative goodwill 812,610.97 40,510.51 812,610.97

Default income 9,639,820.99 21,262,458.25 9,639,820.99

Compensation of performance - 3,486,920.00 -
commitment

Compensation 4,515,082.73 - 4,515,082.73

Other 8,395,703.33 7,761,324.66 8,395,703.33

Total 43,855,867.05 42,373,960.51 43,855,867.05

63. Non-operating expenses

Amount included in
Item 2022 2021 non-recurring gains
or losses for the
current year

Gain on disposal of non-current

assets resulted from damage or 46,910,039.94 18,905,283.93 46,910,039.94
obsolescence

Donation expenditure 23,201,324.51 3,768,241.56 23,201,324.51

Loss in damage and scrap of 5,935,884.98 5,324,096.11 5,935,884.98
inventory

Default expenditure 23,996,599.29 5,381,602.38 23,996,599.29

Fines forfeits and penalty 4,856,843.82 3,602,474.91 4,856,843.82
expenditure

Other 19,277,469.53 11,519,305.66 19,277,469.53

Total 124,178,162.07 48,501,004.55 124,178,162.07

64. Income tax expenses

(1) Details of income tax expenses

Item 2022 2021

Current tax expense for the year based on tax law and 632,068,644.45 657,577,732.98
regulations

Changes in deferred tax assets/liabilities 26,210,045.31 194,484.79


Item 2022 2021

Total 658,278,689.76 657,772,217.77

(2) Reconciliation between income tax expenses and accounting profit:

Item 2022 2021

Profits/losses before tax 3,822,724,528.68 2,509,054,377.87

Expected income tax expenses at applicable tax rate 573,408,679.30 376,358,156.68

Effect of different tax rates applied by subsidiaries 421,981,563.79 350,849,710.70

Adjustment to income tax of previous years 12,539,019.95 -10,432,474.09

Effect of non-taxable income ( "-" for losses) -389,281,309.65 -38,508,715.14

Effect of non-deductible costs, expenses and losses 112,713,764.85 48,660,299.37

Effect on opening balance of deferred tax due to changes -28,748,149.82 -33,136,217.54
in tax rate

Effect of using the deductible temporary differences or

deductible losses for which no deferred tax asset was -628,337.35 -15,763,536.73
recognized in previous ( "-" for losses)

Effect of deductible temporary differences or deductible

losses for which no deferred tax asset was recognized this 7,151,970.41 34,720,096.46
year

Effect of research and development expenses over- -50,858,511.72 -54,975,101.94
deduction ( "-" for losses)

Income tax expenses 658,278,689.76 657,772,217.77

65. Notes to Cash flow statement

(1) Cash received from other operating activities

Item 2022 2021

Operating receivables and payables 829,193,429.43 1,286,226,558.51

Fiscal subsidies 151,493,300.61 177,009,058.10

Interest income of deposit 47,519,969.08 29,932,608.81

Other 43,275,275.35 34,235,888.96

Total 1,071,481,974.47 1,527,404,114.38

(2) Cash paid for other operating activities

Item 2022 2021

Operating receivables and 1,360,321,003.99 1,427,096,258.53
payables

Other expense 1,261,621,277.02 1,045,966,113.35

Total 2,621,942,281.01 2,473,062,371.88

(3) Cash received from other investing activities

Item 2022 2021

Collection of deposit of long-term assets 10,514,283.98 6,555,335.22

Obtaining net cash received by subsidiaries 60,220.93 -


Item 2022 2021

Total 10,574,504.91 6,555,335.22

(4) Cash paid for other investing activities

Item 2022 2021

Deposit of acquisitions of long-term assets,bills,letters of credit etc. 56,933,976.70 4,952,204.60

Net cash flows for disposal of subsidiaries - 9,099,947.44

Total 56,933,976.70 14,052,152.04

(5) Cash received for other financing activities

Item

2022 2021

Bills, loans, deposit of letters of credit 17,015,584.74 16,871,515.07

Receive loans from external correspondents - 675,000.00

Other - 20,000.00

Total 17,015,584.74 17,566,515.07

(6) Cash paid for other financing activities

Item 2022 2021

Bills, loans, deposit of letters of credit 70,355,377.55 29,647,786.91

Restricted stock repurchase - 362,257.20

Securities repurchase capital - 708,291,335.91

Payment for loans and interests of external 1,562,500.00 12,990,389.65
correspondents

Payment for financial leasing 363,189,867.67 402,422,119.97

Expense of bonds issuing 3,470,198.72 60,609.81

Payment for acquisition of non-controlling interest in 58,929,504.49 34,350,089.91
current and previous year

Total 497,507,448.43 1,188,124,589.36

66. Supplementary information on cash flow statement

(1) Supplement to cash flow statement

Item 2022 2021

1. Reconciliation of net profit/loss to cash flows from

operating activities：

Net profit/loss 3,164,445,838.92 1,851,282,160.10

Add: Provisions for impairment losses 51,868,678.48 72,194,585.99

Provisions for credit losses 151,825,135.93 87,397,171.55

Depreciation of fixed assets, depreciation of investment

properties, and depreciation of productive biological 1,462,444,685.72 1,069,383,235.69
assets

Depreciation of right-of-use assets 329,235,542.65 266,500,085.54


Item 2022 2021

Amortization of intangible assets 89,628,217.92 78,880,986.29

Amortization of long-term deferred expenses 56,807,419.96 40,449,779.56

Losses from disposal of fixed assets, intangible assets, -6,722,883.81 -647,470.97
and other long-term assets ("-" for gains)

Loss from scrapping non-current assets ("-" for gains) 46,599,943.30 18,898,575.01

Losses from changes in fair value ("-" for gains) 25,949,112.55 -47,106,002.17

Financial expenses ("-" for income) 574,943,654.34 394,203,158.32

Losses arising from investment ("-" for gains) -267,121,175.54 -384,851,154.17

Decrease in deferred tax assets ("-" for increase) -20,943,068.91 11,710,911.85

Increase in deferred tax liabilities ("-" for decrease) 47,153,114.22 -11,516,427.06

Decrease in gross inventories ("-" for increase) -3,678,052,574.02 -1,941,821,994.17

Decrease in operating receivables ("-" for increase) -611,296,935.98 -190,089,581.17

Increase in operating payables ("-" for decrease) 5,167,163,903.56 1,464,682,912.01

Expense of equity incentive 220,848,526.26 274,319,167.89

Other 13,117,115.36 84,078,150.60

Net cash flows from operating activities 6,817,894,250.91 3,137,948,250.69

2. Investing and financing activities not requiring the

use of cash:

Conversion of debt into capital - -

Convertible bonds due within one year - -

New right-of-use assets in the current period - -

3. Change in cash and cash equivalents：

Cash as at 12/31/2022 2,122,149,250.34 1,681,109,971.07

Less: cash as at 12/31/2021 1,681,109,971.07 2,010,888,021.43

Add: cash equivalents as at 12/31/2022 - -

Less: cash equivalents as at 12/31/2021 - -

Net increase/decrease in cash and cash equivalents 441,039,279.27 -329,778,050.36

(2) Net cash flows from acquisition of subsidiaries during the year

Item 2022

Cash or cash equivalents paid in the current period for business 4,936,376.84
combinations incurred during the previous year

including：Ganzhou Lianduoli Feed Technology Co., Ltd. 2,780,000.00

Jiangxi Jiabo Biological Engineering Co., Ltd. 2,156,376.84

Net cash flows for acquisition of subsidiaries 4,936,376.84

(3) Details of cash and cash equivalents

Item Year ended Year ended
12/31/2022 12/31/2021

1.Cash 2,122,149,250.34 1,681,109,971.07

Including: Cash on hand 456,386.59 939,250.50


Item Year ended Year ended
12/31/2022 12/31/2021

Bank deposits available on demand 1,871,133,546.65 1,615,586,429.58

Digital currency available on demand - -

Other monetary funds available on demand 250,559,317.10 64,584,290.99

Cash at central bank available on demand - -

Amounts due from banks - -

Loans to banks - -

2. Cash equivalents - -

Including: Bond investments with a maturity of 3 months - -
or less

3. Cash and cash equivalents as at 12/31/2022 2,122,149,250.34 1,681,109,971.07

Including:Restrictedcashandcashequivalentsheldbythe - -
Company or subsidiaries of the Group

67. Assets with limited ownership or use rights

Item As at 12/31/2022 Reason for restriction

Land reclamation deposits, L/C
Cash at bank and on hand 130,604,694.73 guarantee deposits, Surety-bond
deposits, Bank guarantees, etc

Financial assets held for trading 42,719,656.06 Margin of futures

Total 173,324,350.79

68. Monetary items in foreign currencies

(1) Monetary Items in foreign currencies

Balance in foreign Balance translated to
Item currency as at Exchange rate RMB as at 12/31/2022
12/31/2022

Cash at bank and on hand —— —— 486,571,017.23

Including: USD 12,178,251.10 6.964600 84,816,647.60

EGP 79,569,266.37 0.281341 22,386,108.37

MYR 14,643,282.60 1.577163 23,094,838.90

BDT 46,756,532.51 0.066010 3,086,398.71

INR 234,794,529.68 0.084127 19,752,497.15

IDR 67,041,874,667.10 0.000445 29,820,112.29

VND 1,029,689,065,209.80 0.000295 303,614,414.21

Bills receivable —— —— 1,251,634.20

Including: INR 14,877,960.00 0.084127 1,251,634.20

Accounts receivable —— —— 1,015,085,424.94

Including: USD 60,776,400.76 6.964600 423,283,320.73

EGP 27,758,247.89 0.281341 7,809,537.19

MYR 3,803,656.78 1.577163 5,998,985.54

INR 361,083,195.37 0.084127 30,376,750.24


Balance in foreign Balance translated to
Item currency as at Exchange rate RMB as at 12/31/2022
12/31/2022

IDR 198,522,038,025.17 0.000445 88,302,266.26

VND 1,557,736,269,861.00 0.000295 459,314,564.98

Other receivables —— —— 108,472,433.55

Including: USD 9,115,013.84 6.964600 63,482,425.39

EGP 4,561,102.23 0.281341 1,283,225.72

MYR 69,505.88 1.577163 109,622.08

BDT 5,744,204.00 0.066010 379,174.91

INR 3,850,445.87 0.084127 323,925.44

IDR 43,448,861,895.39 0.000445 19,325,980.18

VND 79,929,650,709.00 0.000295 23,568,079.83

Long-term receivables —— —— 7,897,169.25

Including: USD 23,106.68 6.964600 160,928.78

INR 22,344,605.00 0.084127 1,879,778.66

IDR 5,380,049,380.00 0.000445 2,393,036.85

VND 11,745,986,530.00 0.000295 3,463,424.96

Short-term loans —— —— 568,454,932.63

Including: MYR 0.03 1.666667 0.05

INR 712,286,301.56 0.084127 59,922,320.84

IDR 162,075,661,353.00 0.000445 72,090,979.65

VND 1,480,164,165,928.00 0.000295 436,441,632.09

Accounts payable —— —— 274,387,575.04

Including: USD 5,614,314.97 6.964600 39,101,458.04

EGP 1,974,880.00 0.281341 555,615.00

MYR 95,157.27 1.577163 150,078.50

INR 97,090,842.87 0.084127 8,167,935.60

IDR 105,591,564,472.27 0.000445 46,966,949.02

VND 608,578,185,174.00 0.000295 179,445,538.88

Other payables —— —— 8,788,941.41

Including: USD 163,802.91 6.964600 1,140,821.75

EGP 348,352.01 0.281341 98,005.75

MYR 52,544.90 1.577163 82,871.85

BDT 77,470.00 0.066010 5,113.79

INR 19,381,454.92 0.084127 1,630,498.52

IDR 836,114,414.00 0.000445 371,902.28

VND 18,516,320,031.00 0.000295 5,459,727.47

Employee compensation —— —— 59,770,138.50
payable


Balance in foreign Balance translated to
Item currency as at Exchange rate RMB as at 12/31/2022
12/31/2022

Including: USD 2,086,754.83 6.964600 14,533,412.69

EGP 1,255,500.47 0.281341 353,223.94

MYR 332,782.99 1.577163 524,852.92

BDT 526,667.00 0.066010 34,765.29

INR 36,238,653.20 0.084127 3,048,639.57

IDR 5,468,055,548.50 0.000445 2,432,181.84

VND 131,733,786,608.26 0.000295 38,843,062.25

Taxes payable —— —— 12,767,856.01

Including: USD 98,778.37 6.964600 687,951.84

EGP 1,510,632.02 0.281341 425,002.94

MYR 330,268.08 1.577163 520,886.49

BDT 7,230,796.26 0.066010 477,304.86

INR 726,803.99 0.084127 61,143.65

IDR 11,864,039,301.67 0.000445 5,277,104.59

VND 18,037,225,939.00 0.000295 5,318,461.64

Long-term loans —— —— 1,910,762,179.94

Including: USD 264,896,880.40 6.964600 1,844,900,813.23

INR 782,882,716.33 0.084127 65,861,366.71

(2) Overseas business entities

Recording Principal place of Basis for determination
Name of business entity currency business of
recording currency

KINGHILLHOLDINGS PTE.LTD. USD Singapore Major local currency

KINGHILLPTE.LTD. USD Singapore Major local currency

Haid Egypt Co.,Ltd EGP Egypt Major local currency

Haid EgyptAquatic Co.,Ltd EGP Egypt Major local currency

KINGHILLRESOURCES PTE.LTD. USD Singapore Major local currency

THANG LONG(VINH VND Vietnam Major local currency
LONG)BIOTECH CO.,LTD

KINGHILLAGRI PTE.LTD. USD Singapore Major local currency

PT.HAIDAAGRICULTURE IDR Indonesia Major local currency
INDONESIA

PT.HAIDASURABAYATRADING IDR Indonesia Major local currency

PT HISENOR TECHNOLOGY IDR Indonesia Major local currency
INDONESIA

PT HAIDABIOTECHNOLOGY IDR Indonesia Major local currency
INDONESIA

Dachuan Biotechnology Co., Ltd. BDT Bengali Major local currency

PT HISENOR GENETICS IDR Indonesia Major local currency
INDONESIA


Recording Principal place of Basis for determination
Name of business entity currency business of
recording currency

Haid International Group Limited USD Hong Kong Major local currency

China Haida Feed Group(HK)Limited USD Hong Kong Major local currency

Rickworth Investments Limited USD Hong Kong Major local currency

Hong Kong Longreat Trading USD Hong Kong Major local currency
Co.,Limited

HAID FEED COMPANY LIMITED VND Vietnam Major local currency

DONG NAI HAID FARM VND Vietnam Major local currency
COMPANY LIMITED

Dancl Limited USD Hong Kong Major local currency

PANASIATRADING RESOURCES USD Hong Kong Major local currency
LIMITED

SHENG LONG INTERNATIONAL USD Hong Kong Major local currency
LTD.

SHENG LONG BIO-TECH VND Vietnam Major local currency
INTERNATIONALCO.,LTD
SHENG LONG BIOTECH (HAI

DUONG) INTERNATIONALCO., VND Vietnam Major local currency
LTD

LONG SHENG INTERNATIONAL VND Vietnam Major local currency
CO.,LTD

Hisenor International Limited USD Hong Kong Major local currency

KEMBANG SUBUR MYR Malaysia Major local currency
INTERNATIONAL LTD.

NAMDUONG VIETNAMAQUATIC VND Vietnam Major local currency
HATCHERY CO.,LTD.

SHENG LONG BIO MYR Malaysia Major local currency
TECH(M)SDN.BHD.

PRIME WORLD CO., LTD. USD Malaysia Major local currency

SHENG LONGAQUA MYR Malaysia Major local currency
TECHNOLOGY (M) SDN. BHD.

Nano South Limited USD Hong Kong Major local currency

Oceanic Forward Ventures Limited USD Hong Kong Major local currency

Power Spring Investments Limited USD Hong Kong Major local currency

Link Tide Limited USD Hong Kong Major local currency

LANKING PTE.LTD. USD Singapore Major local currency

Haid Lanking International Trading USD The United States Major local currency
Inc. ofAmerica

LANKING NEMO(SG) PTE.LTD. USD Singapore Major local currency

SHENGLONG BIO- INR India Major local currency
TECH(INDIA)PRIVATE LIMITED

LANKING RICKWORTH PTE.LTD. USD Singapore Major local currency

Lanking Nano PTE.LTD. USD Singapore Major local currency

HAI DUONG HAID COMPANY VND Vietnam Major local currency
LIMITED

HAI DAI COMPANY LIMITED VND Vietnam Major local currency


Recording Principal place of Basis for determination
Name of business entity currency business of
recording currency

VINH LONG HAI DAI CO.,LTD VND Vietnam Major local currency

HAID (ECUADOR) FEED USD Ecuador Major local currency
CIA.LTDA.

HAIDMARINO CIA.LTDA. USD Ecuador Major local currency

VINH LONG HAILIANKE VND Vietnam Major local currency
BIOTECHNOLOGY CO., LTD

HAID FEED BANGLADESH BDT Bengali Major local currency
LIMITED

BINH DINH HAI LONG CO.,LTD VND Vietnam Major local currency

69. Hedging

(1) Cross currency interest rate swap contract

The Group adopts cross-currency interest rate swap contracts to reduce the fair value change risk of its
floating rate foreign currency bank borrowings, that is, to convert part of the floating rate foreign currency
borrowings into fixed rate RMB borrowings. The cross currency interest rate swap contracts acquired by the
Group, which have the same terms as the corresponding bank borrowings, are designated as hedging
instruments.

The group adopts the main term comparison method to evaluate the effectiveness of hedging. The
management of the Group considers the cross currency interest rate swap contract to be a highly effective
hedging instrument and the main terms are as follows:

Nominal amount Due date Conversion rate

USD 75.00 million with fixed 07/24/2024 Three-month USD LIBOR rose by 2.5% in
interest exchange for 5.21% fixed RMB borrowing

USD 80.00 million with fixed 07/24/2024 Three-month USD LIBOR rose by 2.5% in
interest exchange for 5.20% fixed RMB borrowing

USD 75.00 million with fixed 07/24/2024 Three-month USD LIBOR rose by 2.5% in
interest exchange for 5.18% fixed RMB borrowing

(2) Foreign currency forwards

As at December 31, 2022 the Group held the following foreign exchange forwards, which were designated
as highlyeffective hedging instruments to manage the foreign exchange risk exposure related to the expected
foreign currency sales.

The Group evaluated the effectiveness of hedging by the comparison method of main terms. For the foreign
currency forwards signed, whose terms were consistent with the terms of the expected transactions, and the
group considered them highly effective. The main contents are as follow:

Nominal amount Due date Exchange rate

Buying of USD 33.50 million in RMB 01/05/2023 6.463

Buying of USD 35.00 million in RMB 06/16/2023 6.679

Buying of USD 44.4569 million in RMB 08/02/2023 6.734


Nominal amount Due date Exchange rate

Buying of RMB 287.8840 million in USD 04/26/2023 7.197

Buying of RMB 210.12 million in USD 05/15/2023 7.004

Buying of RMB 276.96 million in USD 11/15/2023 6.924

The Group reduced the exchange rate fluctuation risk of foreign currency borrowings and import purchase
settlement through foreign exchange forward (for details, refer to Note VIII. 1. (3) Market risk).

(3) Commodity futures hedging

The Group mainly engages in the production and sales of feed products as well as hogs breeding; the main
raw materials used in feed production and hogs sales are subject to the risk of price fluctuations. The Group
uses derivative financial instruments (mainly commodity future contracts) to hedge part of the inventory and
the unrecognized definite commitments related to inventory procurement, as well as the expected inventory
sales and procurement, so as to avoid the risk that the Group assumes that the fair value of the inventory and
the unrecognized definite commitments, as well as the expected cash flow of sales and procurement will
fluctuate with the fluctuation of the market price of inventory. The main hedging arrangement is as followed:

Hedged Item Hedging Hedging Method

Instrument

Inventory procurement, definite Selling or buying a commodity futures
commitments of inventory Commodity future contracttooffsetfluctuations inthepriceof
procurement, expected inventory contracts the corresponding commodity

sales and procurement

70. Government grants

(1) Government grants recognized in deferred income, and subsequently measured using the gross
presentation method

Presentatio

As at Additions Recognition Other As at n item Related to
Item 12/31/2021 during the in profit and change 12/31/2022 recognized asset/incom
year loss s in profit e
and loss

Developme 24,515,314.9 Other Related to
nt Support 36,276,299.15 9,390,000.00 1 - 21,150,984.24 income asset
Fund

Developme Other Related to
nt Support - 1,450,000.00 364,926.06 - 1,085,073.94 income income
Fund

Research 8,424,950.89 4,435,581.29 6,727,940.74 - 6,132,591.44 Other Related to
grants income income

Research 2,221,753.57 7,100,000.00 451,048.52 - 8,870,705.05 Other Related to
grants income asset

Grants for Other Related to
production 9,874,612.45 6,136,735.83 1,730,129.23 - 14,281,219.05 income income
activities

Grants for 192,978,312.5 41,773,385.0 20,446,766.3 214,304,931.2 Other Related to
production 4 9 4 - 9 income asset
activities

Government Other Related to
incentive - 10,800.00 900.00 - 9,900.00 income income
grants

Government 2,987,778.24 2,950,000.00 204,372.37 - 5,733,405.87 Other Related to


Presentatio

As at Additions Recognition Other As at n item Related to
Item 12/31/2021 during the in profit and change 12/31/2022 recognized asset/incom
year loss s in profit e
and loss

incentive income asset
grants

Others 345,064.41 23,411.92 283,333.06 - 85,143.27 Other Related to
income income

Others 27,186,295.45 3,798,956.00 5,599,928.09 - 25,385,323.36 Other Related to
income asset

Total 280,295,066.7 77,068,870.1 60,324,659.3 - 297,039,277.5

0 3 2 1

(2) Government grants recognized in deferred income, and subsequently measured using the net amount
method

Presentation

As at Additions Recognition Other As at item Related to
Item 12/31/2021 during the in profit and changes 12/31/2022 recognized asset/income
year loss in profit

and loss

Financial 2,996,546.92 - 507,108.03 - 2,489,438.89 Financial Related to
discount expenses asset

Total 2,996,546.92 - 507,108.03 - 2,489,438.89

(3) Governmentgrantsrecognizedinprofitandloss,andsubsequentlymeasuredusingthegrosspresentation
method

Recognized in Recognized in Presentation item Related to
Item profit and loss for profit and loss for recognized in asset/income
the previous year the current year profit and loss

Development Support Fund 7,789,720.37 45,451,277.35 Other income Related to
income

Development Support Fund 15,211,670.45 24,515,314.91 Other income Related to asset

Research grants 9,568,722.89 8,145,639.56 Other income Related to
income

Research grants 441,160.19 451,048.52 Other income Related to asset

Other grants 20,708,394.56 16,555,268.94 Other income Related to
income

Other grants 1,828,930.32 5,599,928.09 Other income Related to asset

Grants for production 6,798,201.94 4,455,514.72 Other income Related to
activities income

Grants for production 15,487,437.11 20,736,806.34 Other income Related to asset
activities

Government incentive 9,511,839.29 8,633,919.00 Other income Related to
grants income

Government incentive 104,669.94 204,372.37 Other income Related to asset
grants

Total 87,450,747.06 134,749,089.80

(4) Government grants used net amount method to write-down related costs


Related cost write- Related cost write- Presentation item Related to
Item down for the down for the recognized in asset/income
previous year current year related costs

Financial discount 5,820,709.08 1,135,475.02 Financial expenses Related to
income

Total 5,820,709.08 1,135,475.02

(5) Refunding of government grants in current year

Item Amounts Reason

Financial discount 9,655,500.00 Refund the remaining financial discount
interests of the central government

Total 9,655,500.00

VI .Change in Consolidation Scope

1. Business Combinations Involving Entities Not under Common Control

(1) Business Combinations Involving Entities Not under Common Control Incurred in the current period

Basis for Acquiree’s revenue Acquiree’s net
Acquiree Investment Investment Investment % Investment Acquisition determination of from acquisition profit from
date cost method date acquisition date date to period-end acquisition date to
period-end

Suixi Haihe When control over

Veterinary Drug 2022-02-25 1.00 100.00 Acquisition 2022-02-25 acquiree was 708,016.06 38,627.83
Co., Ltd. obtained

Yangchun Haihe When control over

Veterinary 2022-05-30 1.00 100.00 Acquisition 2022-05-30 acquiree was 2,183,190.85 505,225.99
Medicine Co., Ltd. obtained

Luoding city When control over

Haihe Veterinary 2022-06-22 1.00 100.00 Acquisition 2022-06-22 acquiree was 1,071,806.42 -526,460.56
Medicine Co., Ltd. obtained

Bobai Haihe When control over

Veterinary 2022-08-11 0.00 100.00 Acquisition 2022-08-11 acquiree was 961,229.63 133,910.00
Medicine Co., Ltd. obtained

Changde City When control over

Haide Veterinary 2022-08-25 0.00 100.00 Acquisition 2022-08-25 acquiree was 1,154,634.70 54,301.59
Drug Operation obtained

Co., Ltd.

(2) Combination Costs and Goodwill

Yangchun Luoding city Bobai Haihe Changde City
Suixi Haihe Haihe Haihe Veterinary Haide
Item Veterinary Veterinary Veterinary Drug Co., Veterinary
Drug Co., Ltd. Medicine Co., Medicine Co., Ltd. Drug Operation
Ltd. Ltd. Co., Ltd.

Combination costs


Yangchun Luoding city Bobai Haihe Changde City
Suixi Haihe Haihe Haihe Veterinary Haide
Item Veterinary Veterinary Veterinary Drug Co., Veterinary
Drug Co., Ltd. Medicine Co., Medicine Co., Ltd. Drug Operation
Ltd. Ltd. Co., Ltd.

Cash 1.00 1.00 1.00 - -

Fair value of non-cash assets - - - - -

Fair value of debt issued or undertaken - - - - -

Fair value of equity securities issued - - - - -

Fair value of contingent consideration - - - - -

Fair value of previously-held equity investment on the acquisition date - - - - -

Total combination cost 1.00 1.00 1.00 - -

Less: Share of fair value of identifiable net assets obtained 1.00 317,811.21 5,348.69 55,280.18 434,172.89

Goodwill/ combination cost less than the fair value of the identifiable net assets - -317,810.21 -5,347.69 -55,280.18 -434,172.89

Note: The fair value of the combination costs was determined by the value which approved by both the acquirer and the acquiree.

(3) IdentifiableAssets and Liabilities ofAcquirees atAcquisition Date

Suixi Haihe Veterinary Drug Co., Ltd. Yangchun Haihe Veterinary Medicine Co., Luoding city Haihe Veterinary Medicine Co.,
Item Ltd. Ltd.

Fair value at Carrying amount at Fair value at Carrying amount at Fair value at Carrying amount at
acquisition date acquisition date acquisition date acquisition date acquisition date acquisition date

Assets:

Current assets 162,020.14 162,020.14 268,821.65 268,821.65 628,013.02 628,013.02

Non-current assets 132,978.35 132,978.35 62,210.27 62,210.27 158,601.64 158,601.64

Liabilities:

Current liabilities 294,997.49 294,997.49 13,220.71 13,220.71 781,265.97 781,265.97

Non-current - -

liabilities


Suixi Haihe Veterinary Drug Co., Ltd. Yangchun Haihe Veterinary Medicine Co., Luoding city Haihe Veterinary Medicine Co.,
Item Ltd. Ltd.

Fair value at Carrying amount at Fair value at Carrying amount at Fair value at Carrying amount at
acquisition date acquisition date acquisition date acquisition date acquisition date acquisition date

Net assets 1.00 1.00 317,811.21 317,811.21 5,348.69 5,348.69

Less: Non- - - - - - -
controlling interests

Net assets acquired 1.00 1.00 317,811.21 317,811.21 5,348.69 5,348.69

Continued:

Bobai Haihe Veterinary Drug Co., Ltd. Changde City Haide Veterinary Drug Operation Co., Ltd.

Item Fair value at acquisition Carrying amount at acquisition Fair value at acquisition Carrying amount at acquisition
date date date date

Assets:

Current assets 153,636.30 153,636.30 514,847.89 514,847.89

Non-current assets 68,589.38 68,589.38 109,772.00 109,772.00

Liabilities:

Current liabilities 166,945.50 166,945.50 190,447.00 190,447.00

Non-current liabilities

Net assets 55,280.18 55,280.18 434,172.89 434,172.89

Less: Non-controlling interests - - - -

Net assets acquired 55,280.18 55,280.18 434,172.89 434,172.89

Note: The fair value of identifiable assets and liabilities was determined by audited or appraised value which approved by both the acquirer and the acquiree.

2.Business Combinations Involving Entities under Common Control

No business combinations involving entities under common control occurred in the current period.

3. Reverse acquisition

No reverse acquisition occurred in the current period.

4. Disposal of Subsidiaries

No external disposal of subsidiaries occurred in the current period.

5.Changes in the Scope of Consolidation Due to Other Reasons

(1) New Subsidiaries established in the Current Period

Time of Principal place of
Subsidiary (abbreviation) incorporatio Registered capital Place of registration business
n

Shouguang Haihe Agriculture and Animal Husbandry Technology Co., 2022-01-20 RMB 5,000,000.00 Weifang,Shandong Weifang,Shandong
Ltd.

Qingdao Zhizhuxia Experimental Technology Co., Ltd. 2022-01-26 RMB 2,000,000.00 Qingdao,Shandong Qingdao,Shandong

Qianjiang Hailong Biotechnology Co., Ltd. 2022-01-27 RMB 10,000,000.00 Qianjiang,Hubei Qianjiang,Hubei

Haid Egypt Aquatic Co.,Ltd 2022-02-09 EGP 2,000,000.00 Egypt Egypt

Guangzhou Hairong Food Co., Ltd. 2022-02-21 RMB 1,000,000.00 Guangzhou, Guangzhou,
Guangdong Guangdong

Pingjiang Bairuilai Biotechnology Co., Ltd. 2022-02-25 RMB 1,000,000.00 Yueyang, Hunan Yueyang, Hunan

Guangdong Baishengyuan Aquatic Product Improved Variety Co., Ltd. 2022-03-01 RMB 5,000,000.00 Enping, Guangdong Enping, Guangdong

Guangzhou Nansha Haishengyuan Aquaculture Technology Co., Ltd. 2022-03-04 RMB 5,000,000.00 Guangzhou, Guangzhou,
Guangdong Guangdong

Guangzhou Nansha Haida Technology Co., Ltd. 2022-03-14 RMB 100,000,000.00 Guangzhou, Guangzhou,
Guangdong Guangdong

PT HAIDA BIOTECHNOLOGY INDONESIA 2022-03-21 USD 21,500,000.00 Indonesia Indonesia

Zhuhai Chenzhe Private Equity Fund Management Co., Ltd. 2022-03-21 RMB 10,000,000.00 Zhuhai,Guangdong Zhuhai,Guangdong

Meizhou Yitun Hog Breeding Co., Ltd. 2022-03-24 RMB 1,000,000.00 Meizhou,Guangdong Meizhou,Guangdong

Tacheng Western Regions Haisheng Agriculture Development Co., Ltd. 2022-03-25 RMB 1,000,000.00 Tacheng, Xinjiang Tacheng, Xinjiang


Time of Principal place of
Subsidiary (abbreviation) incorporatio Registered capital Place of registration business
n

Guiyang Haiyue Feed Technology Co., Ltd. 2022-03-25 RMB 3,000,000.00 Guiyang,Guizhou Guiyang,Guizhou

Guangzhou Haiyi Investment Co., Ltd. 2022-03-30 RMB 1,000,000.00 Guangzhou, Guangzhou,
Guangdong Guangdong

Dongying Haishengyuan Aquaculture Co., Ltd. 2022-03-30 RMB 30,000,000.00 Dongying,Shandong Dongying,Shandong

Leizhou Yuexiu Haishengyuan Shrimp Culture Technology Co., Ltd. 2022-03-31 RMB 90,000,000.00 Zhanjiang, Guangdong Zhanjiang, Guangdong

Guangzhou Haifeng Aquaculture Service Co., Ltd. 2022-04-07 RMB 100,000.00 Guangzhou, Guangzhou,
Guangdong Guangdong

Haixin Biological (Beijing) Technology Co., Ltd. 2022-04-15 RMB 10,000,000.00 Beijing Beijing

Nantong Fengmu Trading Co., Ltd. 2022-05-27 RMB 10,000,000.00 Nantong,Jiangsu Nantong,Jiangsu

Dalian Haixin Biotechnology Co., Ltd. 2022-07-05 RMB 10,000,000.00 Dalian,Liaoning Dalian,Liaoning

Sichuan Haimufeng Agriculture Co., Ltd. 2022-07-07 RMB 10,000,000.00 Chengdu, Sichuan Chengdu, Sichuan

Inner Mongolia Haishan Feed Co., Ltd. 2022-08-02 RMB 3,000,000.00 Hohhot,Inner Mongolia Hohhot, Inner
Mongolia

Guangxi Haijingzhou Marine Biotechnology Co., Ltd. 2022-08-08 RMB 5,000,000.00 Fangcheng Fangcheng
Port,Guangxi Port,Guangxi

Heyuan Yitun Agriculture Development Co., Ltd. 2022-08-09 RMB 1,000,000.00 Heyuan, Guangdong Heyuan, Guangdong

Foshan Rongda aquatic fingerlings co., ltd 2022-09-09 RMB 3,000,000.00 Foshan,Guangdong Foshan,Guangdong

Weifang Haixin Biotechnology Co., Ltd. 2022-09-09 RMB 1,000,000.00 Weifang,Shandong Weifang,Shandong

Yangling Haiqi Agricultural Technology Co., Ltd. 2022-09-14 RMB 100,000.00 Yangling,Shaanxi Yangling,Shaanxi

Yangling Huashite Testing Technology Co., Ltd. 2022-09-14 RMB 100,000.00 Yangling,Shaanxi Yangling,Shaanxi

Yangjiang Peiqi Breeding Service Co., Ltd. 2022-09-28 RMB 5,000,000.00 Yangjiang, Guangdong Yangjiang, Guangdong

Tangshan Haijingzhou Biotechnology Co., Ltd. 2022-10-18 RMB 30,000,000.00 Tangshan,Hebei Tangshan,Hebei

Guangzhou Ronghai Seedling Technology Co., Ltd. 2022-11-02 RMB 1,000,000.00 Guangzhou, Guangzhou,
Guangdong Guangdong

Guangzhe County Haisheng Biotechnology Co., Ltd. 2022-11-07 RMB 30,000,000.00 Nanping,Fujian Nanping,Fujian


Time of Principal place of
Subsidiary (abbreviation) incorporatio Registered capital Place of registration business
n

Guangzhou Hualaite Testing Technology Co., Ltd. 2022-11-08 RMB 2,000,000.00 Guangzhou, Guangzhou,
Guangdong Guangdong

Weifang Yitun Ecological Agriculture Co., Ltd. 2022-11-17 RMB 1,000,000.00 Weifang,Shandong Weifang,Shandong

Qingdao Dinghao Fengying International Trade Co., Ltd. 2022-11-25 RMB 10,000,000.00 Qingdao,Shandong Qingdao,Shandong

Dachuan Biotechnology Co., Ltd. 2022-11-30 BDT10,000,000.00 Bengal Bengal

Shenzhen Haixin Biotechnology Co., Ltd. 2022-12-02 RMB 10,000,000.00 Shenzhen, Guangdong Shenzhen, Guangdong

Huaibei haida biological feed co., Ltd. 2022-12-05 RMB 10,000,000.00 Huaibei,Anhui Huaibei,Anhui

Wudi Haishengyuan Aquaculture Co., Ltd. 2022-12-23 RMB 70,000,000.00 Binzhou,Shandong Binzhou,Shandong

Sheng Long Biotech (Hai Duong) International Co., Ltd. 2022-12-30 VND232,950,000,000.0 Vietnam Vietnam
0

PT Hisenor Genetics Indonesia 2022-12-30 USD 3,460,000.00 Indonesia Indonesia


(2) New Subsidiaries acquired by other methods

Subsidiary Acquisition date Cost of acquisition

Hengyang Yunyi Biotechnology Co., Ltd. 2022-01-25 16,387,167.40

Guangzhou Mingershi Biotechnology Co., Ltd. 2022-04-30 52,529,136.37

Huizhou Haida Biotechnology Co., Ltd. (Note 1) 2022-10-25 32,000,000.00

Notes：

Note 1: Bo Luo County Chang Shun Feed Co., Ltd. has renamed as Huizhou Haida Biotechnology Co., Ltd
in November, 2022.

Note 2：The subsidiaries mentioned above did not constitute a business on the acquisition date.

(3) Subsidiaries Deregistered in the current period

Method The date of Net assets at Net profit on
Company of equity equity disposal date the date of
disposal disposal disposal

Lianzhou Yitun Ecological Agriculture Dissolved 2022-03-04 - -
Co., Ltd.

Jiaozuo Jinhuilong Biotechnology Co., Dissolved 2022-03-07 - -
Ltd.

Wengyuan county Haifeng Ecological Dissolved 2022-03-11 - -
Agriculture Co., Ltd.

Qingyuan Haichuan Food Co., Ltd. Dissolved 2022-03-30 - -

Yingde Haifeng Ecological Agriculture Dissolved 2022-04-25 - -
Co., Ltd.

Yangjiang Haihe Feed Co., Ltd. Dissolved 2022-05-11 - -

Henan Haihe Houyi Agriculture and

Animal Husbandry Technology Co., Dissolved 2022-05-12 - -8,283.42
Ltd.

Hairong Animal Husbandry and

Breeding Service Professional Dissolved 2022-05-17 - 342,609.63
Cooperation of Chengnan Development
Zone

Dancl Limited Dissolved 2022-06-02 - -19,346.81

Foshan Debao Feed Co., Ltd. Dissolved 2022-08-01 - -

Qingdao Zhizhuxia Hogs Breeding Dissolved 2022-09-29 - 606,310.46
Service Co., Ltd.

Zhangzhou Longwen Hairong

Aquaculture Service Professional Dissolved 2022-10-20 - 2,309.07
Cooperation

Jiyuan Haihejingyu Feed co., ltd Dissolved 2022-11-02 - 319,214.75

Huaian Haichang Feed Co., Ltd. Dissolved 2022-11-17 - 23,020.11

Qingyuan Hainong Agriculture and Dissolved 2022-11-21 - -2,096,656.30
Animal Husbandry Co., Ltd.

HISENOR VIET NAM AQUATIC Dissolved 2022-11-15 - (Note)
BREEDING CO.,LTD

Shenglong Biotechnology Co., Ltd. Dissolved 2022-12-05 - -1,634,904.29
(Taiwan Province)


Method The date of Net assets at Net profit on

Company of equity equity disposal date the date of

disposal disposal disposal

Xinxing countyHaifeng agriculture and Dissolved 2022-12-09 - -1,178,410.00

animal husbandry co., ltd.

Huaihua Hailong Biotechnology Co., Dissolved 2022-12-16 - -

Ltd.

Note：HISENORVIET NAMAQUATIC BREEDING CO.,LTD was canceled through the consolidation by

merger by SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD which is the subsidiary of the Group.

The assets and liabilities of HISENOR VIET NAMAQUATIC BREEDING CO.,LTD has totally transferred

to SHENG LONG BIO-TECH INTERNATIONALCO.,LTD，and its business cancellation registration has

completed on 15 November, 2022.

(4) Loss of control due to withdrawal and investment recovery

The

proportio The book value

The proport n of the of the

ion of the eq remainin The basis for remaining

Subsidiary uity before t g equity determining the Time of of loss equity on the Note
he date of lo on the point of loss of of control date of loss of

ss of control date of control control(RMB

% loss of ten thousand)

control

%

CORESEED

AQUACULTURE( 69.697 0.00 Recovery of November 1,713.74 -
GUAM) investment 2022

CORPORATION
VII. Interests in Other Entities
1. Interests in Subsidiaries
(1). Structure of the Group

Shareholding

Subsidiary Principal place Place of Business % Acquisition

of business registration nature Direct Indire method

ct

Business

Guangzhou combinatio

Runchuan Guangzhou, Guangzhou, n involving

Investment Co., Guangdong Guangdong Investment 100 entities

Ltd. under

common

control

Guangzhou

Yitun Swine Guangzhou, Guangzhou, Investment Establishm

Industry Guangdong Guangdong and Trading 100 ent

Investment Co.,

Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Enping Fengwo

Agriculture and Enping, Enping, Production Establishm
Animal Guangdong Guangdong and Sales 92 ent

Husbandry Co.,
Ltd.
Yangxi Fengwo

Ecological Yangxi, Yangxi, Production 98 Establishm
Agriculture Co., Guangdong Guangdong and Sales ent

Ltd.
Yangjiang
Yangdong

Fengwo Yangdong, Yangdong, Production Establishm
Agriculture and Guangdong Guangdong and Sales 88 ent

Animal
Husbandry Co.,
Ltd.
Enping Yitun

Ecological Enping, Enping, Production 100 Establishm
Agriculture Co., Guangdong Guangdong and Sales ent

Ltd.

Business
Gaozhou Sanhe combinatio
Animal Gaozhou, Gaozhou, Production n involving
Husbandry Co., Guangdong Guangdong and Sales 100 entities not
Ltd. under

common

control

Yingde Yitun

Ecological Yingde, Yingde, Production 90 Establishm
Agriculture Co., Guangdong Guangdong and Sales ent

Ltd.
Hunan Yitun

Ecological Yueyang, Hunan Yueyang, Hunan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.

Hengyang Business
County Jisheng combinatio
Agriculture and Production n involving
Animal Hengyang, Hunan Hengyang, Hunan and Sales 100 entities not
Husbandry under

Development common

Co., Ltd. control

Yueyang Yitun

Agriculture and Production Establishm
Animal Yueyang, Hunan Yueyang, Hunan and Sales 92 ent

Husbandry Co.,
Ltd.
Yueyang

Fengtun Transportat Establishm
Ecological Yueyang, Hunan Yueyang, Hunan ion Service 92 ent

Agriculture Co.,
Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Guigang
Qintang District

Yitun Guigang, Guangxi Guigang, Guangxi Production 100 Establishm
Ecological and Sales ent

Agriculture Co.,
Ltd.
Pingnan Yitun

Ecological Pingnan, Guangxi Pingnan, Guangxi Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Pingguo Yitun

Ecological Pingguo, Guangxi Pingguo, Guangxi Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Guiping Yitun

Ecological Guiping, Guangxi Guiping, Guangxi Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Hengyang Yitun

Ecological Hengyang, Hunan Hengyang, Hunan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Hengshan Yitun

Ecological Hengyang, Hunan Hengyang, Hunan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Guigang
Gangbei

District Yitun Guigang, Guangxi Guigang, Guangxi Production 100 Establishm
Ecological and Sales ent

Agriculture Co.,
Ltd.
Duyun Yitun

Ecological Duyun, Guizhou Duyun, Guizhou Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Rongjiang

CountyYitun Rongjiang, Rongjiang, Production Establishm
Ecological Guizhou Guizhou and Sales 100 ent

Agriculture Co.,
Ltd.
Binyang Yitun

Ecological Binyang, Guangxi Binyang, Guangxi Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Yicheng Yitun

Ecological Yicheng, Hubei Yicheng, Hubei Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Zixing Yitun

Ecological G, Hunan Chenzhou, Hunan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Changning

Yitun Production Establishm
Ecological Hengyang, Hunan Hengyang, Hunan and Sales 100 ent

Agriculture Co.,
Ltd.

Business
Guigang combinatio
Donghuang Production n involving
BreedingAnd Guigang, Guangxi Guigang, Guangxi and Sales 100 entities not
Breeding Co., under

Ltd. common

control

Shaoguan

Zhenjiang Yitun Shaoguan, Shaoguan, Production Establishm
Ecological Guangdong Guangdong and Sales 100 ent

Agriculture Co.,
Ltd.
Shandong Yitun

Ecological Yantai, Shandong Yantai, Shandong Investment 60 Establishm
Agriculture Co., ent

Ltd.

Business
Laizhou Zhizhu combinatio
Animal Production n involving
Husbandry Co., Yantai, Shandong Yantai, Shandong and Sales 100 entities not
Ltd. under

common

control

Qinzhou Yitun

Ecological Qinzhou, Guangxi Qinzhou, Guangxi Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.

Feicheng He Business
Ruifeng combinatio
Agricultural Production n involving
ScienceAnd Tai’an, Shandong Tai’an, Shandong and Sales 80 entities not
Technology under

Co., Ltd. common

control

Weifang Business
Xuheng combinatio
Agricultural Weifang, Weifang, Production n involving
ScienceAnd Shandong Shandong and Sales 100 entities not
Technology under

Co., Ltd. common

control


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Business
combinatio
Gaotang Huayu Liaocheng, Liaocheng, Production n involving
Swine Co., Ltd. Shandong Shandong and Sales 100 entities not
under

common

control

Ganong Business
(Lianyungang) combinatio
Animal Lianyungang, Lianyungang, Production n involving
Husbandry Jiangsu Jiangsu and Sales 82 entities not
Technology under

Co., Ltd. common

control

Guizhou

Aikexin Swine Qiannan, Guizhou Qiannan, Guizhou Production 100 Establishm
Breeding Co., and Sales ent

Ltd.
Binyang
County

Hejiyitun Nanning, Guangxi Nanning, Guangxi Production 100 Establishm
Ecological and Sales ent

Agriculture Co.,
Ltd.
Qinzhou

Qinnan Yitun Production Establishm
Ecological Qinzhou, Guangxi Qinzhou, Guangxi and Sales 100 ent

Agriculture Co.,
Ltd.
Huayuan Yitun

Ecological Xiangxi, Hunan Xiangxi, Hunan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Baojing County

Yitun Production Establishm
Ecological Baojing, Hunan Baojing, Hunan and Sales 100 ent

Agriculture Co.,
Ltd.

Yingde Yitun Qingyuan, Qingyuan, Production Establishm
Pig Breeding Guangdong Guangdong and Sales 100 ent

Co., Ltd.
Hengnan Yitun

Ecological Hengyang, Hunan Hengyang, Hunan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Longan County

Yitun Production Establishm
Ecological Nanning, Guangxi Nanning, Guangxi and Sales 100 ent

Agriculture Co.,
Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Youxian Yitun

Ecological Zhuzhou, Hunan Zhuzhou, Hunan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Wengyuan

CountyYitun Shaoguan, Shaoguan, Production 100 Establishm
Pig Breeding Guangdong Guangdong and Sales ent

Co., Ltd.
Fufeng County

Yitun Production Establishm
Ecological Baoji, Shanxi Baoji, Shanxi and Sales 100 ent

Agriculture Co.,
Ltd.
Linyou Yitun

Ecological Baoji, Shanxi Baoji, Shanxi Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Laibin Yitun

Ecological Laibin, Guangxi Laibin, Guangxi Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
YantaiYitun

Ecological Yantai, Shandong Yantai, Shandong Production 80 Establishm
Agriculture Co., and Sales ent

Ltd.

Business
Yantai combinatio
Zhizhuren Production n involving
Animal Yantai, Shandong Yantai, Shandong and Sales 100 entities not
Husbandry Co., under

Ltd. common

control

Guiyang Yitun

Ecological Chenzhou, Hunan Chenzhou, Hunan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Guangdong

Yiheng Guangzhou, Guangzhou, Investment 51 Establishm
Investment Co., Guangdong Guangdong ent

Ltd.

Business
Gaozhou combinatio
Haiyuan Maoming, Maoming, Production n involving
Agriculture Co., Guangdong Guangdong and Sales 100 entities not
Ltd. under

common

control

Ruyuan County

Yitun Pig Shaoguan, Shaoguan, Production 100 Establishm
Breeding Co., Guangdong Guangdong and Sales ent

Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Luoding Yitun

Ecological Yunfu, Yunfu, Production 100 Establishm
Agriculture Co., Guangdong Guangdong and Sales ent

Ltd.
Wugang Yitun

Ecological Shaoyang, Hunan Shaoyang, Hunan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.

Hunan Yitun Production Establishm
Technology Changsha, Hunan Changsha, Hunan and Sales 100 ent

Co., Ltd.

Meizhou Yitun Meizhou, Meizhou, Production Establishm
Pig Breeding Guangdong Guangdong and Sales 100 ent

Co., Ltd.

Pingnanhai Da Pingnan, Guangxi Pingnan, Guangxi Sales 100 Establishm
Feed Co., Ltd. ent

Guangzhou

Haiyi Guangzhou, Guangzhou, Investment 100 Establishm
Investment Co., Guangdong Guangdong ent

Ltd.
Heyuan Yitun

Agricultural Heyuan,Guangdo Heyuan,Guangdo Production 100 Establishm
Development ng ng and Sales ent

Co., Ltd.
Yangjiang Peiqi

Farming Yangjiang, Yangjiang, Production 100 Establishm
Service Co., Guangdong Guangdong and Sales ent

Ltd.
Weifang Yitun

Ecological Weifang, Weifang, Production 100 Establishm
Agriculture Co., Shandong Shandong and Sales ent

Ltd.

Business
combinatio
Guangzhou Guangzhou, Guangzhou, Production n involving
Haiwei Feed Guangdong Guangdong and Sales 100 entities

Co., Ltd. under

common

control

Business
combinatio
Guangzhou Guangzhou, Guangzhou, n involving
Rongchuan Guangdong Guangdong Sales 100 entities

Feed Co., Ltd. under

common

control


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Business
combinatio
Foshan Haihang Foshan, Foshan, Production n involving
Feed Co., Ltd. Guangdong Guangdong and Sales 87.5 entities not
under

common

control

Maoming Maoming, Maoming, Production Establishm
Haihang Feed Guangdong Guangdong and Sales 100 ent

Co., Ltd.

Business
combinatio
Guangzhou Guangzhou, Guangzhou, Production n involving
Dachuan Feed Guangdong Guangdong and Sales 100 entities

Co., Ltd. under

common

control

Business
combinatio
Hubei Haid Production n involving
Feed Co., Ltd. Wuhan, Hubei Wuhan, Hubei and Sales 100 entities

under

common

control

Guangdong

Hinter Guangzhou, Guangzhou, Production 97 3 Establishm
Biotechnology Guangdong Guangdong and Sales ent

Group Co., Ltd.
Guangzhou

Haishengyuan Guangzhou, Guangzhou, Trading 100 Establishm
Biotechnology Guangdong Guangdong ent

Co., Ltd.
Guangzhou

Mutai Feed Guangzhou, Guangzhou, Sales 100 Establishm
Technology Guangdong Guangdong ent

Co., Ltd.
Guangzhou

Haiyiyuan Guangzhou, Guangzhou, Trading 100 Establishm
Biotechnology Guangdong Guangdong ent

Co., Ltd.
Shaanxi Haid

Agriculture and Production Establishm
Animal Yangling, Shanxi Yangling, Shanxi and Sales 67 ent

Husbandry Co.,
Ltd.

Yangling Haid Yangling, Shanxi Yangling, Shanxi Production 100 Establishm
Feed Co., Ltd. and Sales ent

Gansu Haid Lanzhou, Gansu Lanzhou, Gansu Production 100 Establishm
Feed Co., Ltd. and Sales ent

Weinan Haid Weinan, Shaanxi Weinan, Shaanxi Production 100 Establishm
Feed Co., Ltd. and Sales ent


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Wuwei Haid Wuwei, Gansu Wuwei, Gansu Production 100 Establishm
Feed Co., Ltd. and Sales ent

Baoji Haid

Agriculture and Production Establishm
Animal Baoji, Shanxi Baoji, Shanxi and Sales 100 ent

Husbandry Co.,
Ltd.

Hunan Haid Production Establishm
Bio-Feed Co., Changde, Hunan Changde, Hunan and Sales 100 ent

Ltd.

Guangzhou Guangzhou, Guangzhou, Establishm
Haihe Feed Co., Guangdong Guangdong Sales 100 ent

Ltd.
Liaocheng

Haixin Manageme

Enterprise Liaocheng, Liaocheng, nt 100 Establishm
Management Shandong Shandong consulting ent

Consulting Co.,
Ltd.

Anyang Haiyue Manageme

Feed Tangyin, Henan Tangyin, Henan nt 100 Establishm
Technology consulting ent

Co., Ltd.
Zoucheng

Haiyue Manageme

Enterprise Zoucheng, Zoucheng, nt 100 Establishm
Management Shandong Shandong consulting ent

Consulting Co.,
Ltd.

Yinan Haiyue Manageme Establishm
Biotechnology Yinan, Shandong Yinan, Shandong nt 100 ent

Co., Ltd. consulting

Lanzhou Haid Lanzhou, Gansu Lanzhou, Gansu Production 100 Establishm
Feed Co., Ltd. and Sales ent

Yichang Haid Production Establishm
Feed Co., Ltd. Yichang, Hubei Yichang, Hubei and Sales 100 ent

(Note 4)

Foshan Haipu Foshan, Foshan, Sales 87.5 Establishm
Feed Co., Ltd. Guangdong Guangdong ent

Qingyuan

Haibei Qingyuan, Qingyuan, Production 100 Establishm
Biotechnology Guangdong Guangdong and Sales ent

Co., Ltd.

Zhanjiang Haid Zhanjiang, Zhanjiang, Production 100 Establishm
Feed Co., Ltd. Guangdong Guangdong and Sales ent

Jiangmen Haid Jiangmen, Jiangmen, Production 100 Establishm
Feed Co., Ltd. Guangdong Guangdong and Sales ent

Chengdu Haid Production Establishm
Biotechnology Xinjin, Sichuan Xinjin, Sichuan and Sales 100 ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Taizhou Haid Production Establishm
Bio-Feed Co., Xinghua, Jiangsu Xinghua, Jiangsu and Sales 100 ent

Ltd.

Jingzhou Haid Jingzhou, Hubei Jingzhou, Hubei Production 100 Establishm
Feed Co., Ltd. and Sales ent

Ezhou Haid Ezhou, Hubei Ezhou, Hubei Production 100 Establishm
Feed Co., Ltd. Province and Sales ent

Business
combinatio
Dongguan Haid Dongguan, Dongguan, Production n involving
Feed Co., Ltd. Guangdong Guangdong and Sales 100 entities not
under

common

control

Fujian Haid Changtai, Fujian Changtai, Fujian Production 100 Establishm
Feed Co., Ltd. and Sales ent

Zhejiang Haid Shaoxing, Shaoxing, Production 100 Establishm
Feed Co., Ltd. Zhejiang Zhejiang and Sales ent

Guangxi Haid Qinzhou, Guangxi Qinzhou, Guangxi Production 100 Establishm
Feed Co., Ltd. and Sales ent

Kinghill Establishm
Holdings Singapore Singapore Investment 100 ent

Pte.Ltd.

Kinghill Singapore Singapore Investment 100 Establishm
Pte.Ltd. ent

Haid Egypt Egypt Egypt Production 100 Establishm
Co.,Ltd and Sales ent

Haid Egypt Egypt Egypt Production 100 Establishm
Aquatic Co.,Ltd and Sales ent

Kinghill Establishm
Resources Singapore Singapore Investment 100 ent

Pte.Ltd.
Vinh Long

Hailianke Vietnam Vietnam Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd

KinghillAgri Singapore Singapore Investment 100 Establishm
Pte.Ltd. ent

Pt.Haida Production Establishm
Agriculture Indonesia Indonesia and Sales 100 ent

Indonesia

Pt.Haida Establishm
Surabaya Indonesia Indonesia Trading 100 ent

Trading

Pt Hisenor Production Establishm
Technology Indonesia Indonesia and Sales 100 ent

Indonesia

Haid Feed Production Establishm
Bangladesh Bangladesh Bangladesh and Sales 100 ent

Limited


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

PT HAIDA

BIOTECHNOL Indonesia Indonesia Production 100 Establishm
OGY and Sales ent

INDONESIA

Dachuan Establishm
Biotechnology Bangladesh Bangladesh Trading 100 ent

Co., Ltd.

PT HISENOR Production Establishm
GENETICS Indonesia Indonesia and Sales 100 ent

INDONESIA

Jiangxi Haid Nanchang, Jiangxi Nanchang, Jiangxi Production 100 Establishm
Feed Co., Ltd. and Sales ent

Business
combinatio
Guangzhou Guangzhou, Guangzhou, n involving
Haid Feed Co., Guangdong Guangdong Trading 100 entities not
Ltd. under

common

control

Guangdong Guangzhou, Guangzhou, Production Establishm
Hisenor Group Guangdong Guangdong and Sales 85 ent

Co., Ltd.

Business
Zhanjiang combinatio
Hisenor Marine Zhanjiang, Zhanjiang, Production n involving
Biotechnology Guangdong Guangdong and Sales 100 entities not
Co., Ltd. under

common

control

Zhanjiang

Haijingzhou Zhanjiang, Zhanjiang, Production Establishm
Marine Guangdong Guangdong and Sales 100 ent

Biotechnology
Co., Ltd.
Hainan Hisenor

Marine Wenchang, Wenchang, Production 100 Establishm
Biotechnology Hainan Hainan and Sales ent

Co., Ltd.
Zhangzhou

Haijingzhou Zhangzhou, Zhangzhou, Production Establishm
Marine Fujian Fujian and Sales 100 ent

Biotechnology
Co., Ltd.
Changyi

Haijingzhou Weifang, Weifang, Production Establishm
Biological Shandong Shandong and Sales 100 ent

Technology
Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Jingtai

Haijingzhou Production Establishm
Fishery Baiying, Gansu Baiying, Gansu and Sales 100 ent

Technology
Co., Ltd.
Yongji
Haijingzhou

Fishery Science Yuncheng, Shanxi Yuncheng, Shanxi Production 100 Establishm
And and Sales ent

Technology
Co., Ltd.
Yuncheng

Haishengyuan Production Establishm
Fishery Yuncheng, Shanxi Yuncheng, Shanxi and Sales 100 ent

Technology
Co., Ltd.
Nantong

Haijingzhou Production Establishm
Biological Nantong, Jiangsu Nantong, Jiangsu and Sales 70 ent

Technology
Co., Ltd.
Shanwei
Haijingzhou

Marine Shanwei, Shanwei, Production 100 Establishm
Biological Guangdong Guangdong and Sales ent

Technology
Co., Ltd.
Guangzhou

Hailingxian Panyu,Guangzhou Panyu,Guangzhou Trading 70 Establishm
Food Co., Ltd. ent

(Note 2)
Dongying

Haijingzhou Dongying, Dongying, Production 100 Establishm
Biotechnology Shandong Shandong and Sales ent

Co., Ltd.
Shanwei

Haizenong Shanwei, Shanwei, Production Establishm
Marine Guangdong Guangdong and Sales 100 ent

Biotechnology
Co., Ltd.
Guangxi

Haijingzhou Fangchenggang, Fangchenggang, Production Establishm
Marine Guangxi, China Guangxi, China and Sales 100 ent

Biotechnology
Co., Ltd.
Tangshan

Haijingzhou Tangshan,Hebei Tangshan,Hebei Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Rongcheng

Rongchuan Rongcheng, Rongcheng, Production 100 Establishm
Biotechnology Shandong Shandong and Sales ent

Co., Ltd.

Business
Rongcheng combinatio
Yandun Horn Production n involving
Fish Meal Co., Weihai, Shandong Weihai, Shandong and Sales 51 entities not
Ltd. under

common

control

Fujian Production Establishm
Haisheng Feed Nanping, Fujian Nanping, Fujian and Sales 50 ent

Co., Ltd.
Zhenyuan

Haisheng Qingyang, Gansu Qingyang, Gansu Production 100 Establishm
Protein Feed and Sales ent

Co., Ltd.
Guangze

Haisheng Nanping, Fujian Nanping, Fujian Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd.

Pucheng Production Establishm
Haisheng Feed Pucheng, Fujian Pucheng, Fujian and Sales 50 ent

Co., Ltd.
Xinjiang Xiyu

Haihua Urumqi, Xinjiang Urumqi, Xinjiang Trading 51 Establishm
Products Co., ent

Ltd.
Jinzhou

Zhengyuan Jinzhou, Liaoning Jinzhou, Liaoning Trading 100 Establishm
Grain Trade ent

Co., Ltd.
Yingkou

Fengmu Yingkou, Yingkou, Establishm
Agricultural Liaoning Liaoning Trading 100 ent

Development
Co., Ltd.

Guangzhou Guangzhou, Guangzhou, Establishm
Haiyou Trade Guangdong Guangdong Trading 100 ent

Co., Ltd.
Ningbo Fengmu

Agricultural Ningbo, Zhejiang Ningbo, Zhejiang Trading 100 Establishm
Development ent

Co., Ltd.
Sanya Fengmu

Agricultural Sanya, Hainan Sanya, Hainan Trading 70 Establishm
Development ent

Co., Ltd.

Guangzhou Guangzhou, Guangzhou, Transportat Establishm
Anan Logistics Guangdong Guangdong ion Service 100 ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Xiyu Haisheng

(Guangzhou) Guangzhou, Guangzhou, Commercia 51 Establishm
Supply Chain Guangdong Guangdong l service ent

Co., Ltd.
Tacheng Xiyu

Haisheng Establishm
Agricultural Tacheng,Xinjiang Tacheng,Xinjiang Trading 100 ent

Development
Co., Ltd.
Jilin Haid

Rongchuan Baicheng, Jilin Baicheng, Jilin Trading 100 Establishm
Trading Co., ent

Ltd.
Sihui Haifeng

Ecological Zhaoqing, Zhaoqing, Production 100 Establishm
Agriculture Co., Guangdong Guangdong and Sales ent

Ltd.

Maoming Maoming, Maoming, Production Establishm
Hailong Feed Guangdong Guangdong and Sales 100 ent

Co., Ltd.

Nanchang Haid Production Establishm
Biotechnology Nanchang, Jiangxi Nanchang, Jiangxi and Sales 100 ent

Co., Ltd.

Zhuhai Zhuhai, Zhuhai, Production Establishm
Rongchuan Guangdong Guangdong and Sales 100 ent

Feed Co., Ltd.

Jieyang Haid Jieyang, Jieyang, Production 100 Establishm
Feed Co., Ltd. Guangdong Guangdong and Sales ent

Zhuhai Ronghai

Breeding Zhuhai, Zhuhai, Production 100 Establishm
Technology Guangdong Guangdong and Sales ent

Co., Ltd.

Business
combinatio
Foshan Foshan, Foshan, Production n involving
Sanshuifanling Guangdong Guangdong and Sales 100 entities not
Feed Co., Ltd. under

common

control

Business
Dalian Haid combinatio
Rongchuan n involving
Trading Co., Dalian, Liaoning Dalian, Liaoning Trading 100 entities not
Ltd. under

common

control

Haid British Virgin Establishm
International Hong Kong Islands Trading 100 ent

Group Limited


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

China Haida

Feed Hong Kong Hong Kong Trading 100 Establishm
Group(HK)Lim ent

ited

Rickworth British Virgin Establishm
Investments Hong Kong Islands Investment 100 ent

Limited
Hong Kong

Longreat Hong Kong Hong Kong Trading 100 Establishm
Trading Co., ent

Limited

Haid Feed Production Establishm
Company Vietnam Vietnam and Sales 100 ent

Limited

Dong Nai Haid Production Establishm
Farm Company Vietnam Vietnam and Sales 100 ent

Limited

Business
combinatio
Panasia Trading British Virgin n involving
Resources Hong Kong Islands Investment 80 entities not
Limited under

common

control

Business
combinatio
Sheng Long British Virgin n involving
International Hong Kong Islands Investment 100 entities not
Ltd. under

common

control

Business
Sheng Long combinatio
Bio-Tech Production n involving
International Vietnam Vietnam and Sales 100 entities not
Co.,Ltd under

common

control

Business
combinatio
Long Sheng Production n involving
International Vietnam Vietnam and Sales 100 entities not
Co.,Ltd under

common

control

Hisenor British Virgin Establishm
International Hong Kong Islands Investment 100 ent

Limited


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Business
combinatio
Kembang Subur n involving
International Malaysia Malaysia Investment 100 entities not
Ltd. under

common

control

Business
Namduong combinatio
Vietnam Production n involving
Aquatic Vietnam Vietnam and Sales 100 entities not
Hatchery under

Co.,Ltd. common

control

Sheng Long Bio Production Establishm
Tech(M)Sdn.Bh Malaysia Malaysia and Sales 100 ent

d.

Business
combinatio
Prime World n involving
Co., Ltd. Malaysia Malaysia Investment 100 entities not
under

common

control

Sheng Long

Aqua Malaysia Malaysia Production 100 Establishm
Technology (M) and Sales ent

Sdn. Bhd.
Thang

Long(Vinh Vietnam Vietnam Production 100 Establishm
Long)Biotech and Sales ent

Co.,Ltd.
SHENG LONG

BIOTECH Production Establishm
(HAI DUONG) Vietnam Vietnam and Sales 100 ent

INTERNATIO
NALCO. LTD

Nano South Hong Kong British Virgin Investment 100 Establishm
Limited Islands ent

Oceanic

Forward Hong Kong British Virgin Investment 100 Establishm
Ventures Islands ent

Limited

Power Spring British Virgin Establishm
Investments Hong Kong Islands Investment 100 ent

Limited

Link Tide Hong Kong British Virgin Investment 100 Establishm
Limited Islands ent

Changzhou Production Establishm
Haid Bio-Feed Liyang, Jiangsu Liyang, Jiangsu and Sales 100 ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Tianjin Haid Tianjin Tianjin, China Production 97 3 Establishm
Feed Co., Ltd. and Sales ent

Business
combinatio
JiangmenA&T Jiangmen, Jiangmen, Production n involving
Xinhui Feed Guangdong Guangdong and Sales 80 entities not
Co., Ltd. under

common

control

Tianmen Haid Tianmen, Hubei Tianmen, Hubei Production 100 Establishm
Feed Co., Ltd. and Sales ent

Zhuhai Hailong Zhuhai, Zhuhai, Production Establishm
Biotechnology Guangdong Guangdong and Sales 100 ent

Co., Ltd.

Yangjiang Haid Yangjiang, Yangjiang, Production 100 Establishm
Feed Co., Ltd. Guangdong Guangdong and Sales ent

Guigang Haid Guigang, Guangxi Guigang, Guangxi Production 100 Establishm
Feed Co., Ltd. and Sales ent

Yiyang Haid Yiyang, Hunan Yiyang, Hunan Production 99 1 Establishm
Feed Co., Ltd. and Sales ent

Nantong Haid Production Establishm
Biotechnology Nantong, Jiangsu Nantong, Jiangsu and Sales 100 ent

Co., Ltd.

Yunnan Haid Production Establishm
Biotechnology Kunming, Yunnan Kunming, Yunnan and Sales 100 ent

Co., Ltd.

Guangzhou Guangzhou, Guangzhou, Production Establishm
Hailong Feed Guangdong Guangdong and Sales 100 ent

Co., Ltd.

Zhaoqing Haid Gaoyao, Gaoyao, Production 100 Establishm
Feed Co., Ltd. Guangdong Guangdong and Sales ent

WuhanAquaera Ezhou, Hubei Production Establishm
Biotechnology Province Ezhou, Hubei and Sales 100 ent

Co., Ltd.
Shenzhen

Longreat Shenzhen, Shenzhen, Trading 70 Establishm
Trading Co., Guangdong Guangdong ent

Ltd.

Lanking Singapore Singapore Trading 100 Establishm
Pte.Ltd. ent

Haid Lanking Establishm
International U.S. U.S. Trading 100 ent

Trading Inc.

Lanking Establishm
Nemo(Sg) Singapore Singapore Investment 80 ent

Pte.Ltd.

Shenglong Bio- Production Establishm
Tech(India)Priv India India and Sales 100 ent

ate Limited


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Lanking Establishm
Rickworth Singapore Singapore Investment 100 ent

Pte.Ltd.

Haidmarino Ecuador Ecuador Production 100 Establishm
Cia.Ltda. and Sales ent

Lanking Nano Singapore Singapore Investment 100 Establishm
Pte.Ltd. ent

Hai Duong Production Establishm
Haid Company Vietnam Vietnam and Sales 100 ent

Limited

Hai Dai Production Establishm
Company Vietnam Vietnam and Sales 100 ent

Limited

Vinh Long Hai Vietnam Vietnam Production 100 Establishm
Dai Co.,Ltd and Sales ent

Binh Dinh Hai Vietnam Vietnam Production 100 Establishm
Long Co.,Ltd and Sales ent

Hunan Production Establishm
Dongting Haid Dongting, Hunan Dongting, Hunan and Sales 100 ent

Feed Co., Ltd.

Zhangzhou Zhangzhou, Zhangzhou, Production Establishm
Haid Feed Co., Fujian Fujian and Sales 85 ent

Ltd.

Anhui Haid Chizhou,Anhui Chizhou,Anhui Production 100 Establishm
Feed Co., Ltd. and Sales ent

Xiangtan Haid Xiangtan, Hunan Xiangtan, Hunan Production 100 Establishm
Feed Co., Ltd. and Sales ent

Guangzhou

Changsheng Guangzhou, Guangzhou, Transportat 100 Establishm
Logistics Co., Guangdong Guangdong ion Service ent

Ltd.
Guangzhou

Cangyouliang Guangzhou, Guangzhou, Trading 100 Establishm
Trading Co., Guangdong Guangdong ent

Ltd.
Guangzhou

Zhongcangshen Guangzhou, Guangzhou, Establishm
g Commercial Guangdong Guangdong Trading 66 ent

& Trading Co.,
Ltd.
Guangzhou

Danong Guangzhou, Guangzhou, Establishm
Enterprise Guangdong Guangdong Investment 100 ent

Management
Co., Ltd.
Hengyang

Yunyi Hengyang, Hunan Hengyang, Hunan Production 100 Other

Biotechnology and Sales method

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Guangzhou

Haifengchang Guangzhou, Guangzhou, Establishm
Enterprise Guangdong Guangdong Investment 100 ent

Management
Co., Ltd.
Shandong
Haiding

Agriculture and Heze, Shandong Heze, Shandong Sales 55 Establishm
Animal ent

Husbandry Co.,
Ltd.

Suixian Yuliang Production Establishm
Haiding Feed Shangqiu, Henan Shangqiu, Henan and Sales 50 ent

Co., Ltd.
Suixian Haiding

Veterinary Shangqiu, Henan Shangqiu, Henan Sales 100 Establishm
Service Co., ent

Ltd.
Yuncheng

Haiding Heze, Shandong Heze, Shandong Production 50 Establishm
Hongda Feed and Sales ent

Co., Ltd.
Yuncheng

Haiding Establishm
Veterinary Heze, Shandong Heze, Shandong Sales 100 ent

Service Co.,
Ltd.
Jinan Haiding

FarmingAnd Establishm
Animal Heze, Shandong Heze, Shandong Sales 100 ent

Husbandry Co.,
Ltd.

Liaocheng Liaocheng, Liaocheng, Production Establishm
Haiding Feed Shandong Shandong and Sales 92 ent

Co., Ltd.
Shanxian

Zhongyi Shanxian, Shanxian, Production 92 Establishm
Haiding Feed Shandong Shandong and Sales ent

Co., Ltd.
Jinan Haiding

Veterinary Heze, Shandong Heze, Shandong Sales 100 Establishm
Service Co., ent

Ltd.

Xinxiang Production Establishm
Haiding Feed Xinxiang, Henan Xinxiang, Henan and Sales 100 ent

Co., Ltd.

Xinxiang Production Establishm
Hairuida Feed Xinxiang, Henan Xinxiang, Henan and Sales 100 ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Heze Haiding

Feed Heze, Shandong Heze, Shandong Production 100 Establishm
Technology and Sales ent

Co., Ltd.
Heze Haiding

Veterinary Heze, Shandong Heze, Shandong Sales 100 Establishm
Service Co., ent

Ltd.

Jining Haiding Zoucheng, Zoucheng, Production 90 Establishm
Feed Co., Ltd. Shandong Shandong and Sales ent

Jining Haiding

Veterinary Jining, Shandong Jining, Shandong Sales 100 Establishm
Service Co., ent

Ltd.
Sishui Dingxin

Veterinary Jining, Shandong Jining, Shandong Sales 100 Establishm
Service Co., ent

Ltd.

Feixian Production Establishm
Hairuida Feed Linyi, Shandong Linyi, Shandong and Sales 100 ent

Co., Ltd.
Feixian

Hairuida Establishm
Veterinary Linyi, Shandong Linyi, Shandong Sales 100 ent

Service Co.,
Ltd.

Yinan Haiding Linyi, Shandong Linyi, Shandong Production 100 Establishm
Feed Co., Ltd. and Sales ent

Yinan Haiding

Veterinary Linyi, Shandong Linyi, Shandong Sales 100 Establishm
Service Co., ent

Ltd.
Jinan
Fengcheng

Agriculture and Dong’e, Dong’e, Trading 100 Establishm
Animal Shandong Shandong ent

Husbandry Co.,
Ltd.

Tengzhou Zaozhuang, Zaozhuang, Production Establishm
Fengcheng Shandong Shandong and Sales 100 ent

Feed Co., Ltd.

Binzhou Binzhou, Binzhou, Production Establishm
Haiding Feed Shandong Shandong and Sales 100 ent

Co., Ltd.
Binzhou

Haiding Binzhou, Binzhou, Establishm
Veterinary Shandong Shandong Sales 100 ent

Service Co.,
Ltd.

Jining Production Establishm
Fengcheng Jining, Shandong Jining, Shandong and Sales 100 ent

Feed Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Dong’E

Dingxin Dong’e, Dong’e, Production Establishm
Farming Shandong Shandong and Sales 51 ent

Service Co.,
Ltd.
Heze Haiding

Ecological Heze, Shandong Heze, Shandong Production 100 Establishm
Farming Co., and Sales ent

Ltd.
Linyi Haiding

Feed Linyi, Shandong Linyi, Shandong Production 75 Establishm
Technology and Sales ent

Co., Ltd.
Linyi Hedong
Haiding

Agriculture and Production Establishm
Animal Linyi, Shandong Linyi, Shandong and Sales 75 ent

Husbandry
Development
Co., Ltd.

Junan Haiding Linyi, Shandong Linyi, Shandong Production 90 Establishm
Feed Co., Ltd. and Sales ent

Junan Haiding

Veterinary Linyi, Shandong Linyi, Shandong Sales 100 Establishm
Service Co., ent

Ltd.

Sihong Haiding Sihong, Jiangsu Sihong, Jiangsu Production 100 Establishm
Feed Co., Ltd. and Sales ent

Linyi Dingxin Production Establishm
Farming Co., Linyi, Shandong Linyi, Shandong and Sales 90 ent

Ltd.
Linyi Haiding

Veterinary Linyi, Shandong Linyi, Shandong Research 100 Establishm
Service Co., and Trading ent

Ltd.
Liaocheng

Haiding Liaocheng, Liaocheng, Production Establishm
Veterinary Shandong Shandong and Sales 100 ent

Service Co.,
Ltd.

Henan Haiding Kaifeng, Henan Kaifeng, Henan Production 100 Establishm
Feed Co., Ltd. and Sales ent

Qingzhou

Haidinghe Weifang, Weifang, Production 80 Establishm
Xinsheng Feed Shandong Shandong and Sales ent

Co., Ltd.

Linyi Haiding Production Establishm
Lusheng Feed Linyi, Shandong Linyi, Shandong and Sales 100 ent

Co., Ltd.

Qinggang Feng Suihua, Suihua, Production Establishm
Chengbai Zun Heilongjiang Heilongjiang and Sales 51 ent

Feed Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Suihua Feng Suihua, Suihua, Production Establishm
Chengbaizun Heilongjiang Heilongjiang and Sales 51 ent

Feed Co., Ltd.

Chengwu Establishm
Fengcheng Heze, Shandong Heze, Shandong Trading 100 ent

Feed Co., Ltd.

Weifang Binhai Weifang, Weifang, Production Establishm
Haiding Feed Shandong Shandong and Sales 80 ent

Co., Ltd.

Linyi Dinghao Production Establishm
Breeding Co., Linyi, Shandong Linyi, Shandong and Sales 60 ent

Ltd.
Dongying

Dinghao Dongying, Dongying, Production 100 Establishm
Farming Co., Shandong Shandong and Sales ent

Ltd.

Xuzhou Production Establishm
Hairuida Feed Xuzhou, Jiangsu Xuzhou, Jiangsu and Sales 100 ent

Co., Ltd.
Xuzhou
Zhongyi

Haiding Production Establishm
Agriculture and Xuzhou, Jiangsu Xuzhou, Jiangsu and Sales 100 ent

Animal
Husbandry Co.,
Ltd.
Lanling
Haiding

Hekangyuan Production Establishm
Agriculture and Linyi, Shandong Linyi, Shandong and Sales 65 ent

Animal
Husbandry Co.,
Ltd.
Gaotang
Haiding

Agriculture and Liaocheng, Liaocheng, Production 100 Establishm
Animal Shandong Shandong and Sales ent

Husbandry Co.,
Ltd.
Jiangsu

Fengcheng Xuzhou, Jiangsu Xuzhou, Jiangsu Trading 100 Establishm
Technology ent

Co., Ltd.
Gansu

Fengying Jinchang, Gansu Jinchang, Gansu Transportat 100 Establishm
Technology ion Service ent

Co., Ltd.
Qingdao

Dinghao Qingdao, Qingdao, Production Establishm
Fengsheng Shandong Shandong and Sales 100 ent

International
Trade Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Xishui Haid Huanggang, Huanggang, Production 100 Establishm
Feed Co., Ltd. Hubei Hubei and Sales ent

Yancheng Haid Production Establishm
Bio-Feed Co., Yancheng, Jiangsu Yancheng, Jiangsu and Sales 100 ent

Ltd.

Honghu Haid Honghu, Hubei Honghu, Hubei Production 100 Establishm
Feed Co., Ltd. and Sales ent

Business
combinatio
Kaifeng Haid Production n involving
Feed Co., Ltd. Kaifeng, Henan Kaifeng, Henan and Sales 100 entities not
under

common

control

Business
Guangzhou combinatio
Heshengtang Guangzhou, Guangzhou, Production n involving
Biotechnology Guangdong Guangdong and Sales 100 entities not
Co., Ltd. under

common

control

Business
Guangzhou combinatio
Heshengtang Guangzhou, Guangzhou, Production n involving
Veterinary Guangdong Guangdong and Sales 100 entities not
Pharmaceutical under

Co., Ltd. common

control

Guangdong Business
Haid Livestock combinatio
Veterinary Guangzhou, Guangzhou, Research n involving
Research Guangdong Guangdong and Trading 100 entities not
Institute Co., under

Ltd. common

control

Henan Haihe
Agriculture and

Animal Luoyang, Henan Luoyang, Henan Production 67 Establishm
Husbandry and Sales ent

Technology
Co., Ltd.

Xuchang Haihe Yuzhou, Henan Yuzhou, Henan Production 100 Establishm
Feed Co., Ltd. and Sales ent

Anyang Haihe
Agriculture and

Animal Tangyin, Henan Tangyin, Henan Production 100 Establishm
Husbandry and Sales ent

Technology
Co., Ltd.

Henan Mugaole Jiyuan, Henan Jiyuan, Henan Production 100 Establishm
Feed Co., Ltd. and Sales ent


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Suqian Haid Siyang, Jiangsu Siyang, Jiangsu Production 100 Establishm
Feed Co., Ltd. and Sales ent

Huaihua Haid Huaihua, Hunan Huaihua, Hunan Production 100 Establishm
Feed Co., Ltd. and Sales ent

Guangzhou

Meinong Guangzhou, Guangzhou, Establishm
Investment Guangdong Guangdong Investment 100 ent

Management
Co., Ltd.

Haid (Ecuador) Ecuador Ecuador Production 100 Establishm
Feed Cia.Ltda. and Sales ent

Guangdong

Hairuite Pet Qingyuan, Qingyuan, Establishm
Nitribution Guangdong Guangdong Sales 100 ent

Technology
Co., Ltd.
Guangzhou

Haijian Guangzhou, Guangzhou, Investment 100 Establishm
Investment Co., Guangdong Guangdong ent

Ltd.

Guangdong Business
Bairong combinatio
Aquatic Foshan, Foshan, Production n involving
Farming Group Guangdong Guangdong and Sales 100 entities not
Co., Ltd. (Note under

3) common

control

Zhaoqing

Bairong Zhaoqing, Zhaoqing, Production Establishm
Aquatic Guangdong Guangdong and Sales 100 ent

Farming Co.,
Ltd.
Yangxin

Bairong Production Establishm
Aquatic Yangxin, Hubei Yangxin, Hubei and Sales 100 ent

Farming Co.,
Ltd.
Jingzhou

Bairong Production Establishm
Aquatic Jingzhou, Hubei Jingzhou, Hubei and Sales 100 ent

Farming Co.,
Ltd.
Shandong

Bairong Linyi, Shandong Linyi, Shandong Production 100 Establishm
Fisheries Fine and Sales ent

Seed Co., Ltd.
Hainan Bairong

Aquatic Dingan, Hainan Dingan, Hainan Production 100 Establishm
Products Co., and Sales ent

Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Zhaoqing

Baishengyuan Zhaoqing, Zhaoqing, Production Establishm
Aquatic Guangdong Guangdong and Sales 100 ent

Products Co.,
Ltd.
Guangdong

Baishengyuan Enping, Enping, Production Establishm
Aquatic Guangdong Guangdong and Sales 100 ent

Farming Co.,
Ltd.
Qingyuan

Baishengyuan Qingyuan, Qingyuan, Production 100 Establishm
Aquatic Seed Guangdong Guangdong and Sales ent

Co., Ltd.

Business
Hunan combinatio
Innovation Production n involving
Biotechnology Hengyang, Hunan Hengyang, Hunan and Sales 100 entities not
Limited under

common

control

Guangzhou

Haishengke Guangzhou, Guangzhou, Investment 100 Establishm
Investment Co., Guangdong Guangdong ent

Ltd.

Business
Sichuan combinatio
Hailinger Production n involving
Biopharmaceuti Chengdu, Sichuan Chengdu, Sichuan and Sales 100 entities not
cal Co., Ltd. under

common

control

Sanming Haid Sanming, Fujian Sanming, Fujian Production 100 Establishm
Feed Co., Ltd. and Sales ent

Qingyuan Haid Qingyuan, Qingyuan, Production Establishm
Biotechnology Guangdong Guangdong and Sales 100 ent

Co., Ltd.
Xuancheng

Haid Xuancheng, Xuancheng, Production 100 Establishm
Biotechnology Anhui Anhui and Sales ent

Co., Ltd.
Guangdong

Shunde Haid Shunde, Shunde, Sales 100 Establishm
Biotechnology Guangdong Guangdong ent

Co., Ltd.

Business
combinatio
Jiaxing Haid Production n involving
Yongwang Bio- Jiaxing, Zhejiang Jiaxing, Zhejiang and Sales 80 entities not
Feed Co., Ltd. under

common

control


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Business
Shijiazhuang combinatio
Weike Production n involving
Biotechnology Jinzhou, Hebei Jinzhou, Hebei and Sales 70 entities not
Co., Ltd. under

common

control

Chongqing Production Establishm
Haid Feed Co., Chongqing, China Chongqing, China and Sales 100 ent

Ltd.

Shenyang Haid Shenyang, Shenyang, Production 85 Establishm
Feed Co., Ltd. Liaoning Liaoning and Sales ent

Jiangsu Haihe

Agriculture and Establishm
Animal Xuzhou, Jiangsu Xuzhou, Jiangsu Sales 67 ent

Husbandry Co.,
Ltd.

Xuzhou Haihe Xuzhou, Jiangsu Xuzhou, Jiangsu Production 70 Establishm
Feed Co., Ltd. and Sales ent

Lianyungang Lianyungang, Lianyungang, Production Establishm
Haihe Feed Co., Jiangsu Jiangsu and Sales 100 ent

Ltd.

Xuzhou Haid Production Establishm
Hexin Feed Co., Xuzhou, Jiangsu Xuzhou, Jiangsu and Sales 100 ent

Ltd.
Anshan

Dachuan Feed Anshan, Liaoning Anshan, Liaoning Sales 100 Establishm
Technology ent

Co., Ltd.
Guangzhou

Haiyuan Guangzhou, Guangzhou, Commercia 100 Establishm
Factoring Co., Guangdong Guangdong l factoring ent

Ltd.

Haid Pet Care Weihai, Shandong Weihai, Shandong Sales 100 Establishm
Co., Ltd. ent

Haid Pet Care Rongcheng, Rongcheng, Production Establishm
(Weihai) Co., Shandong Shandong and Sales 100 ent

Ltd.

Wuhan Zeyi Establishm
Investment Co., Wuhan, Hubei Wuhan, Hubei Investment 100 ent

Ltd.

Ganzhou Haid Production Establishm
Biotechnology Ganzhou, Jiangxi Ganzhou, Jiangxi and Sales 100 ent

Co., Ltd.

Foshan Haid Foshan, Foshan, Production Establishm
Beacon Feed Guangdong Guangdong and Sales 60 ent

Co., Ltd.
Guangzhou

Zecan Guangzhou, Guangzhou, Establishm
Investment Guangdong Guangdong Investment 100 ent

Management
Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Guangzhou

Punong Guangzhou, Guangzhou, Establishm
Investment Guangdong Guangdong Investment 100 ent

Management
Co., Ltd.

Shandong Establishm
Fengying Food Qufu, Shandong Qufu, Shandong Investment 66 ent

Co., Ltd.

Jiaxiang Slaughterin Establishm
Haiying Food Jining, Shandong Jining, Shandong g service 90 ent

Co., Ltd.

Linxi Haiying Xingtai, Hebei Xingtai, Hebei Slaughterin 90 Establishm
Food Co., Ltd. g service ent

Yiyuan Haiying Zibo, Shandong Zibo, Shandong Slaughterin 62 Establishm
Food Co., Ltd. g service ent

Zouping Zouping, Zouping, Slaughterin Establishm
Haiying Food Shandong Shandong g service 75 ent

Co., Ltd.

Binzhou Binzhou, Binzhou, Slaughterin Establishm
Haiying Food Shandong Shandong g service 70 ent

Co., Ltd.

Dezhou Dezhou, Dezhou, Slaughterin Establishm
Haiying Food Shandong Shandong g service 55 ent

Co., Ltd.
Guangzhou

Yannong Guangzhou, Guangzhou, Establishm
Investment Guangdong Guangdong Investment 100 ent

Management
Co., Ltd.
Guangdong
Haid Poverty

Alleviation Guangzhou, Guangzhou, Commercia 100 Establishm
Investment Guangdong Guangdong l service ent

Development
Co., Ltd.

Business
combinatio
Liyang Jiu He Production n involving
Feed Co., Ltd. Liyang, Jiangsu Liyang, Jiangsu and Sales 80 entities not
under

common

control

Shaoguan Haid Shaoguan, Shaoguan, Production Establishm
Biotechnology Guangdong Guangdong and Sales 100 ent

Co., Ltd.

Business
combinatio
Shandong Qingdao, Qingdao, Investment n involving
Daxin Group Shandong Shandong and Trading 60 entities not
Co., Ltd. under

common

control


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Business
combinatio
Weifang Daxin Qingzhou, Qingzhou, Production n involving
Feed Co., Ltd. Shandong Shandong and Sales 100 entities not
under

common

control

Business
combinatio
Yantai Daxin Production n involving
Feed Co., Ltd. Yantai, Shandong Yantai, Shandong and Sales 100 entities not
under

common

control

Business
combinatio
Linyi Yihe Feed Tancheng, Tancheng, Production n involving
Co., Ltd. Shandong Shandong and Sales 100 entities not
under

common

control

Business
combinatio
Jiangsu Daxin Production n involving
Feed Co., Ltd. Huaiyin, Jiangsu Huaiyin, Jiangsu and Sales 100 entities not
under

common

control

Shandong Business
Daxin combinatio
Agriculture and Weifang, Weifang, Production n involving
Animal Shandong Shandong and Sales 100 entities not
Husbandry under

Technology common

Co., Ltd. control

Liaocheng Liaocheng, Liaocheng, Production Establishm
Daxin Feed Co., Shandong Shandong and Sales 100 ent

Ltd.
Laiyang Haihe
Agriculture and

Animal Yantai, Shandong Yantai, Shandong Production 85 Establishm
Husbandry and Sales ent

Technology
Co., Ltd.

Qingdao Haihe Business
Agriculture and combinatio
Animal Qingdao, Qingdao, Production n involving
Husbandry Shandong Shandong and Sales 100 entities not
Technology under

Co., Ltd. common

control


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Linyi Haihe
Agriculture and

Animal Linyi, Shandong Linyi, Shandong Production 100 Establishm
Husbandry and Sales ent

Technology
Co., Ltd.

Yantai Production Establishm
Zhizhuren Feed Yantai, Shandong Yantai, Shandong and Sales 100 ent

Co., Ltd.
Gaomi Haihe
Agriculture and

Animal Weifang, Weifang, Production 60 Establishm
Husbandry Shandong Shandong and Sales ent

Technology
Co., Ltd.

Business
combinatio
Qingdao Qingdao, Qingdao, Production n involving
Huaxin Feed Shandong Shandong and Sales 100 entities not
Co., Ltd. under

common

control

Shouguang
Haihe

Agriculture and Weifang, Weifang, Production Establishm
Animal Shandong Shandong and Sales 90 ent

Husbandry
Technology
Co., Ltd.
Qingdao

Zhizhuxia Qingdao, Qingdao, Production Establishm
Experimental Shandong Shandong and Sales 100 ent

Technology
Co., Ltd.
Linyi Zhizhuxia

Breeding Establishm
Technology Linyi, Shandong Linyi, Shandong Sales 100 ent

Service Co.,
Ltd.

Huaian Hailong Huai’an, Jiangsu Huai’an, Jiangsu Production 100 Establishm
Feed Co., Ltd. and Sales ent

Business
Hunan combinatio
Jinhuilong n involving
Technology Yueyang, Hunan Yueyang, Hunan Investment 51 entities not
Co., Ltd. under

common

control


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Business
Yueyang combinatio
Jinhuilong Production n involving
Biological Yueyang, Hunan Yueyang, Hunan and Sales 100 entities not
Technology under

Co., Ltd. common

control

Business
combinatio
Shijiazhuang Shijiazhuang, Shijiazhuang, Production n involving
Huilong Feed Hebei Hebei and Sales 100 entities not
Co., Ltd. under

common

control

Business
combinatio
Handan Production n involving
Huilong Feed Handan, Hebei Handan, Hebei and Sales 100 entities not
Co., Ltd. under

common

control

Huilong Feed Huai’an, Jiangsu Huai’an, Jiangsu Sales 100 Establishm
Co., Ltd. ent

Fuzhou Haid Fuzhou, Fujian Fuzhou, Fujian Production 100 Establishm
Feed Co., Ltd. and Sales ent

Zhaoqing

Gaoyao Haid Zhaoqing, Zhaoqing, Production Establishm
Biological Guangdong Guangdong and Sales 100 ent

Technology
Co., Ltd.

Nanning Haid Production Establishm
Biotechnology Nanning, Guangxi Nanning, Guangxi and Sales 100 ent

Co., Ltd.

Ganzhou Production Establishm
Hailong Feed Ganzhou, Jiangxi Ganzhou, Jiangxi and Sales 100 ent

Co., Ltd.

Guangzhou Micro-

Haiyuan Guangzhou, Guangzhou, credit 100 Establishm
Microfinance Guangdong Guangdong service ent

Co., Ltd.
Guangdong

Haid Guangzhou, Guangzhou, Research 100 Establishm
Biotechnology Guangdong Guangdong and Trading ent

Co., Ltd.

Jiangmen Jiangmen, Jiangmen, Production Establishm
Rongchuan Guangdong Guangdong and Sales 100 ent

Feed Co., Ltd.
Chongqing

Kaizhou Haid Establishm
Biotechnology Chongqing, China Chongqing, China Sales 100 ent

Co., Ltd. (Note
1)


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Meizhou Haid Meizhou, Meizhou, Production Establishm
Biotechnology Guangdong Guangdong and Sales 70 ent

Co., Ltd.
Yicheng Haid

Biological Xiangyang, Hubei Xiangyang, Hubei Production 100 Establishm
Technology and Sales ent

Co., Ltd.

Heshan Jiangmen, Jiangmen, Production Establishm
Ronghai Feed Guangdong Guangdong and Sales 100 ent

Co., Ltd.

Hexian Haid Research Establishm
Biotechnology Ma’anshan,Anhui Ma’anshan,Anhui and Trading 100 ent

Co., Ltd.
Guangzhou

Nansha Haid Guangzhou, Guangzhou, Production 100 Establishm
Technology Guangdong Guangdong and Sales ent

Co., Ltd.
Guangzhou

Mingersi Guangzhou, Guangzhou, Investment 100 Other

Biotechnology Guangdong Guangdong method

Co., Ltd.
Guangzhou

Shunkang Guangzhou, Guangzhou, Sales 100 Establishm
Aquaculture Guangdong Guangdong ent

Co., Ltd.

Tianjin Production Establishm
Rongchuan Tianjin Tianjin, China and Sales 70 ent

Feed Co., Ltd.

Zhanjiang Zhanjiang, Zhanjiang, Establishm
Rongda Feed Guangdong Guangdong Sales 100 ent

Co., Ltd.

Huainan Haid Production Establishm
Biological Feed Huainan,Anhui Huainan,Anhui and Sales 100 ent

Co., Ltd.
Maoming Haid

Biological Maoming, Maoming, Sales 100 Establishm
Technology Guangdong Guangdong ent

Co., Ltd.
Guangzhou

Ronghai Guangzhou, Guangzhou, Establishm
Breeding Guangdong Guangdong Investment 100 ent

Technology
Co., Ltd.
Zhongshan City

Seawater Zhongshan, Zhongshan, Production Establishm
ProductionAnd Guangdong Guangdong and Sales 80 ent

Aquaculture
Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Guangzhou

RongdaAquatic Guangzhou, Guangzhou, Production Establishm
Products Guangdong Guangdong and Sales 70 ent

Technology
Co., Ltd.
Jiangmen

Ronghai Jiangmen, Jiangmen, Production Establishm
Aquaculture Guangdong Guangdong and Sales 100 ent

Technology
Co., Ltd.

Business
combinatio
Zhongshan Zhongshan, Zhongshan, Slaughterin n involving
Yugezi Food Guangdong Guangdong g service 60 entities not
Co., Ltd. under

common

control

Guangxi

Ronghai Fangchenggang, Fangchenggang, Production 70 Establishm
Fishery Co., Guangxi, China Guangxi, China and Sales ent

Ltd.

Zhongshan Zhongshan, Zhongshan, Production Establishm
RongdaAquatic Guangdong Guangdong and Sales 51 ent

Seed Co., Ltd.

Guangzhou Guangzhou, Guangzhou, Establishm
Hairong Food Guangdong Guangdong Sales 80 ent

Co., Ltd.

Foshan Rongda Foshan, Foshan, Production Establishm
Aquatic Seed Guangdong Guangdong and Sales 51 ent

Co., Ltd.
Guangzhou

Ronghai Guangzhou, Guangzhou, Production Establishm
Seedling Guangdong Guangdong and Sales 75 ent

Technology
Co., Ltd.

Sichuan Production Establishm
Rongchuan Meishan, Sichuan Meishan, Sichuan and Sales 100 ent

Feed Co., Ltd.

Yulin Haid Feed Yulin, Guangxi Yulin, Guangxi Production 100 Establishm
Co., Ltd. and Sales ent

Sichuan Haile

Agriculture and Production Establishm
Animal Chengdu, Sichuan Chengdu, Sichuan and Sales 55 ent

Husbandry Co.,
Ltd.
Yichang Zhihai

Agriculture and Production Establishm
Animal Yichang, Hubei Yichang, Hubei and Sales 72 ent

Husbandry Co.,
Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Mianyang Mianyang, Mianyang, Production Establishm
Zhonggui Feed Sichuan Sichuan and Sales 72 ent

Co., Ltd.

Dali Haiwang Dali, Yunan Dali, Yunan Production 70 Establishm
Feed Co., Ltd. and Sales ent

Dali Haizhi Dali, Yunan Dali, Yunan Sales 100 Establishm
Trade Co., Ltd. ent

Business
combinatio
Yunnan Production n involving
Zhonggui Feed Kunming, Yunnan Kunming, Yunnan and Sales 80 entities not
Co., Ltd. under

common

control

Chongqing Establishm
Haizhi Feed Chongqing, China Chongqing, China Sales 90 ent

Co., Ltd.
Chongqing

Hainong Establishm
Veterinary Chongqing, China Chongqing, China Sales 100 ent

Service Co.,
Ltd.

Guiyang Haid Production Establishm
Zhihai Feed Guiyang, Guizhou Guiyang, Guizhou and Sales 70 ent

Co., Ltd.

Qujing Zhihai Qujing, Yunnan Qujing, Yunnan Production 100 Establishm
Feed Co., Ltd. and Sales ent

Haile (Luliang) Establishm
Biotechnology Qujing, Yunnan Qujing, Yunnan Sales 100 ent

Co., Ltd.

Yibin Zhihai Yibin, Sichuan Yibin, Sichuan Production 100 Establishm
Feed Co., Ltd. and Sales ent

Meishan Establishm
Haidzhihai Meishan, Sichuan Meishan, Sichuan Sales 83 ent

Feed Co., Ltd.
Yibin Yucan

Veterinary Yibin, Sichuan Yibin, Sichuan Sales 100 Establishm
Service Co., ent

Ltd.
Guangzhou
Xingnong
Ecological

Agriculture and Guangzhou, Guangzhou, Investment 100 Establishm
Animal Guangdong Guangdong ent

Husbandry
Development
Co., Ltd.
Ezhou Haifeng

Ecological Ezhou, Hubei Ezhou, Hubei Production 80 Establishm
Agriculture Co., Province and Sales ent

Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Business
Qingyuan combinatio
Ronghai Qingyuan, Qingyuan, Production n involving
Breeding Guangdong Guangdong and Sales 96.67 3.33 entities not
Technology under

Co., Ltd. common

control

Guangzhou

Haiyin Guangzhou, Guangzhou, Financing Establishm
Financing Guangdong Guangdong guarantee 100 ent

Guarantee Co.,
Ltd.

Qinzhou Production Establishm
Hailong Feed Qinzhou, Guangxi Qinzhou, Guangxi and Sales 100 ent

Co., Ltd.

Hainan Haid Wenchang, Wenchang, Production Establishm
Biotechnology Hainan Hainan and Sales 100 ent

Co., Ltd.

Liuzhou Haid Liuzhou, Guangxi Liuzhou, Guangxi Production 100 Establishm
Feed Co., Ltd. and Sales ent

Business
Jiangsu combinatio
Dachuan Production n involving
Biotechnology Huai’an, Jiangsu Huai’an, Jiangsu and Sales 100 entities not
Co., Ltd. under

common

control

Zhaoqing

Ronghai Zhaoqing, Zhaoqing, Production Establishm
Aquaculture Guangdong Guangdong and Sales 100 ent

Technology
Co., Ltd.

Gaoan Haid Production Establishm
Biotechnology Yichun, Jiangxi Yichun, Jiangxi and Sales 100 ent

Co., Ltd.
Shanghai

Gaohaid Shanggao, Jiangxi Shanggao, Jiangxi Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd.
Qingyuan

Hailong Qingyuan, Qingyuan, Production Establishm
Biological Guangdong Guangdong and Sales 100 ent

Technology
Co., Ltd.
Guangdong

Qingyuan Qingyuan, Qingyuan, Sales 60 Establishm
Guanghong Guangdong Guangdong ent

Feed Co., Ltd.
Guangdong

Haid Guangzhou, Guangzhou, Trading 100 Establishm
International Guangdong Guangdong ent

Trade Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Guangzhou

Nansha Haid Guangzhou, Guangzhou, Production 100 Establishm
Biotechnology Guangdong Guangdong and Sales ent

Co., Ltd.
Yancheng

Haiwei Production Establishm
Biological Yancheng, Jiangsu Yancheng, Jiangsu and Sales 100 ent

Technology
Co., Ltd.
Hainan Haid

Aquatic Seed Wenchang, Wenchang, Production Establishm
Industry Hainan Hainan and Sales 100 ent

Development
Co., Ltd.

Wuzhou Haid Wuzhou, Wuzhou, Production Establishm
Biotechnology Guangxi, China Guangxi, China and Sales 100 ent

Co., Ltd.

Dongguan Dongguan, Dongguan, Production Establishm
Haiqi Feed Co., Guangdong Guangdong and Sales 100 ent

Ltd.

Zhangzhou Zhangzhou, Zhangzhou, Production Establishm
Haiheng Feed Fujian Fujian and Sales 100 ent

Co., Ltd.
Deyang
Dachuan

Agriculture and Production Establishm
Animal Deyang, Sichuan Deyang, Sichuan and Sales 100 ent

Husbandry
Technology
Co., Ltd.

Mianyang Mianyang, Mianyang, Production Establishm
Hailong Feed Sichuan Sichuan and Sales 70 ent

Co., Ltd.

Meishan Haid Production Establishm
Biotechnology Meishan, Sichuan Meishan, Sichuan and Sales 100 ent

Co., Ltd.

Guangzhou Guangzhou, Guangzhou, Production Establishm
Nongzhidao Guangdong Guangdong and Sales 60 ent

Feed Co., Ltd.
Yingkou

Dachuan Feed Yingkou, Yingkou, Production 100 Establishm
Technology Liaoning Liaoning and Sales ent

Co., Ltd.

Jiesou Haid Fuyang,Anhui Fuyang,Anhui Production 100 Establishm
Feed Co., Ltd. and Sales ent

Anlu Haid Feed Xiaogan, Hubei Xiaogan, Hubei Production 100 Establishm
Co., Ltd. and Sales ent

Jingzhou Haihe

Biological Jingzhou, Hubei Jingzhou, Hubei Production 100 Establishm
Technology and Sales ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Guangzhou

Chenzhao Guangzhou, Guangzhou, Investment 100 Establishm
Investment Co., Guangdong Guangdong ent

Ltd.

Hainan Business
Zhuangmei combinatio
Agriculture and Production n involving
Animal Danzhou, Hainan Danzhou, Hainan and Sales 100 entities not
Husbandry Co., under

Ltd. common

control

Yancheng
Runchuan

Agricultural Yancheng, Jiangsu Yancheng, Jiangsu Production 100 Establishm
ScienceAnd and Sales ent

Technology
Co., Ltd.
Zigong Hailong

Biological Zigong, Sichuan Zigong, Sichuan Production 100 Establishm
Technology and Sales ent

Co., Ltd.

Business
Jiangxi Jiabo combinatio
Biological Production n involving
Engineering Jiujiang, Jiangxi Jiujiang, Jiangxi and Sales 60 entities not
Co., Ltd. under

common

control

Jiangxi Gunan Business
Herbal Science combinatio
And Production n involving
Technology Jiujiang, Jiangxi Jiujiang, Jiangxi and Sales 100 entities not
Collaborative under

Innovation Co., common

Ltd. control

Business
Jiangxi Renxin combinatio
Tang Production n involving
Biotechnology Jiujiang, Jiangxi Jiujiang, Jiangxi and Sales 100 entities not
Co., Ltd. under

common

control

Guangxi Production Establishm
Rongchuan Nanning, Guangxi Nanning, Guangxi and Sales 100 ent

Feed Co., Ltd.

Dali Haid Production Establishm
Biotechnology Dali, Yunan Dali, Yunan and Sales 100 ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Guangzhou

Haid Guangzhou, Guangzhou, Production Establishm
Technology Guangdong Guangdong and Sales 100 ent

Development
Co., Ltd.

Heshan Haiwei Jiangmen, Jiangmen, Production 100 Establishm
Feed Co., Ltd. Guangdong Guangdong and Sales ent

Business
Ganzhou combinatio
Lianduoli Feed Production n involving
Technology Ganzhou, Jiangxi Ganzhou, Jiangxi and Sales 70 entities not
Co., Ltd. under

common

control

Maoming Maoming, Maoming, Production Establishm
Haiwei Feed Guangdong Guangdong and Sales 70 ent

Co., Ltd.
Leizhou

Hailong Zhanjiang, Zhanjiang, Production 100 Establishm
Biotechnology Guangdong Guangdong and Sales ent

Co., Ltd.
Sichuan

Hailong Meishan, Sichuan Meishan, Sichuan Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd.

Qinzhou Production Establishm
Haiwei Feed Qinzhou, Guangxi Qinzhou, Guangxi and Sales 100 ent

Co., Ltd.
Yancheng

Rongchuan Yancheng, Jiangsu Yancheng, Jiangsu Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd.
Naning

Dachuan Nanning, Guangxi Nanning, Guangxi Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd.

Yongzhou Haid Production Establishm
Biotechnology Yongzhou, Hunan Yongzhou, Hunan and Sales 100 ent

Co., Ltd.

Baotou Baotou, Inner Baotou, Inner Production Establishm
Haicheng Feed Mongolia Mongolia and Sales 51 ent

Co., Ltd.

Jiangsu Haid Production Establishm
Biotechnology Yancheng, Jiangsu Yancheng, Jiangsu and Sales 100 ent

Co., Ltd.

Guiyang Haid Production Establishm
Biotechnology Guiyang, Guizhou Guiyang, Guizhou and Sales 100 ent

Co., Ltd.

Wuwei Haimu Production Establishm
Biotechnology Wuwei, Gansu Wuwei, Gansu and Sales 100 ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Guilin Haid Production Establishm
Biotechnology Guilin, Guangxi Guilin, Guangxi and Sales 100 ent

Co., Ltd.

Inner Mongolia Bayannur, Inner Bayannur, Inner Production Establishm
Haid Feed Co., Mongolia Mongolia and Sales 100 ent

Ltd.
Guiyang

Dachuan Guiyang, Guizhou Guiyang, Guizhou Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd.

Xingtai Haid Production Establishm
Biotechnology Xingtai, Hebei Xingtai, Hebei and Sales 100 ent

Co., Ltd.

Foshan Foshan, Foshan, Establishm
Lianduoli Feed Guangdong Guangdong Sales 100 ent

Co., Ltd.
Guangdong

Haifulai Guangzhou, Guangzhou, Research 100 Establishm
Biotechnology Guangdong Guangdong and Sales ent

Co., Ltd.
Liupanshui

Haid Liupanshui, Liupanshui, Production 100 Establishm
Biotechnology Guizhou Guizhou and Sales ent

Co., Ltd.
Guangdong

Haiqi Guangzhou, Guangzhou, Investment 100 Establishm
Investment Co., Guangdong Guangdong ent

Ltd.
Heze

Haiboyoumei Establishm
Technical Heze, Shandong Heze, Shandong Sales 100 ent

Service Co.,
Ltd.
Hubei Haiqi

Technical Wuhan, Hubei Wuhan, Hubei Sales 100 Establishm
Service Co., ent

Ltd.
Kaifeng Haiqi

Technical Kaifeng, Henan Kaifeng, Henan Sales 100 Establishm
Service Co., ent

Ltd.

Sichuan Haiqi Establishm
Biotechnology Chengdu, Sichuan Chengdu, Sichuan Sales 100 ent

Co., Ltd.
Xishui Haiqi

Technical Huanggang, Huanggang, Sales 100 Establishm
Service Co., Hubei Hubei ent

Ltd.
Kunming Haiqi

Technical Kunming, Yunnan Kunming, Yunnan Sales 100 Establishm
Service Co., ent

Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Mianyang Haiqi

Breeding Mianyang, Mianyang, Establishm
Technology Sichuan Sichuan Sales 100 ent

Service Co.,
Ltd.
Yaan Haiqi

Breeding Establishm
Technology Ya'an Sichuan Ya'an Sichuan Sales 100 ent

Service Co.,
Ltd.
Nanchang Haiqi

Veterinary Nanchang, Jiangxi Nanchang, Jiangxi Sales 100 Establishm
Medicine Co., ent

Ltd.
Hengyang

Haiqi Technical Hengyang, Hunan Hengyang, Hunan Sales 100 Establishm
Service Co., ent

Ltd.
Jingzhou Haiqi

Technical Jingzhou, Hubei Jingzhou, Hubei Sales 100 Establishm
Service Co., ent

Ltd.
Jingshan Haiqi

Technical Jingmen, Hubei Jingmen, Hubei Sales 100 Establishm
Service Co., ent

Ltd.
Huaihua Haiqi

Technical Huaihua, Hunan Huaihua, Hunan Sales 100 Establishm
Service Co., ent

Ltd.
Jieshou Haiqi

Technical Fuyang,Anhui Fuyang,Anhui Sales 100 Establishm
Service Co., ent

Ltd.

Business
Changde Haider combinatio
Veterinary n involving
Medicine Changde, Hunan Changde, Hunan Sales 100 entities not
Management under

Co., Ltd. common

control

Guangzhou

Haiki Guangzhou, Guangzhou, Sales 100 Establishm
Technology Guangdong Guangdong ent

Co., Ltd.

Meizhou Haiqi Meizhou, Meizhou, Establishm
Technology Guangdong Guangdong Sales 100 ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Zhangzhou

Haiqi Zhangzhou, Zhangzhou, Establishm
Veterinary Fujian Fujian Sales 100 ent

Medicine Co.,
Ltd.

Maoming Haiqi Maoming, Maoming, Establishm
Technology Guangdong Guangdong Sales 100 ent

Co., Ltd.

Yangjiang Haiqi Yangjiang, Yangjiang, Establishm
Technology Guangdong Guangdong Sales 100 ent

Co., Ltd.

Qingyuan Haiqi Qingyuan, Qingyuan, Establishm
Technology Guangdong Guangdong Sales 100 ent

Co., Ltd.
Gansu Muqi

Agricultural Lanzhou, Gansu Lanzhou, Gansu Sales 22 Establishm
Technology ent

Co., Ltd.

Business
combinatio
Raoping Haide Chaozhou, Chaozhou, n involving
Biotechnology Guangdong Guangdong Sales 51 entities not
Co., Ltd. under

common

control

Yulin Haiqi Establishm
Biotechnology Yulin, Guangxi Yulin, Guangxi Sales 100 ent

Co., Ltd.
Qinzhou Pubei

Haiqi Qinzhou, Guangxi Qinzhou, Guangxi Sales 100 Establishm
Biotechnology ent

Co., Ltd.
Xingtai Haiqi

Breeding Establishm
Technology Xingtai, Hebei Xingtai, Hebei Sales 100 ent

Service Co.,
Ltd.

Business
Suixi Haihe combinatio
Veterinary Production n involving
Medicine Co., Suixi,Zhanjiang Suixi,Zhanjiang and Sales 100 entities not
Ltd. under

common

control

Business
Yangchun combinatio
Haihe Yangchun,Guangd Yangchun,Guangd n involving
Veterinary ong ong Sales 100 entities not
Medicine Co., under

Ltd. common

control


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Business
Luoding Haihe combinatio
Veterinary Luoding,Guangdo Luoding,Guangdo n involving
Medicine Co., ng ng Sales 100 entities not
Ltd. under

common

control

Yangling Haiqi

Agricultural Yangling, Shanxi Yangling, Shanxi Production 100 Establishm
Technology and Sales ent

Co., Ltd.
Yangling

Huashite Production Establishm
Testing Yangling, Shanxi Yangling, Shanxi and Sales 100 ent

Technology
Co., Ltd.

Business
Bobai Haihe combinatio
Veterinary n involving
Medicine Co., Bobai,Guangxi Bobai,Guangxi Sales 100 entities not
Ltd. under

common

control

Guangzhou

Haifeng Production Establishm
Breeding Panyu,Guangzhou Panyu,Guangzhou and Sales 100 ent

Service Co.,
Ltd.
Nanning

Haililai Nanning, Guangxi Nanning, Guangxi Production 70 Establishm
Biotechnology and Sales ent

Co., Ltd.

Shaoyang Haid Shaoyang, Hunan Shaoyang, Hunan Production 100 Establishm
Feed Co., Ltd. and Sales ent

Business
combinatio
Jiangmen Jiangmen, Jiangmen, Production n involving
Debao Group Guangdong Guangdong and Sales 80 entities not
Co., Ltd. under

common

control

Business
combinatio
Guangzhou Guangzhou, Guangzhou, Production n involving
Denong Feed Guangdong Guangdong and Sales 59 entities not
Co., Ltd. under

common

control


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Business
combinatio
Foshan Dazhi Foshan, Foshan, Production n involving
Biotechnology Guangdong Guangdong and Sales 100 entities not
Co., Ltd. under

common

control

Business
combinatio
Taishan Debao Jiangmen, Jiangmen, Production n involving
Feed Co., Ltd. Guangdong Guangdong and Sales 100 entities not
under

common

control

Maoming Business
Debao combinatio
Agriculture and Maoming, Maoming, Production n involving
Animal Guangdong Guangdong and Sales 51 entities not
Husbandry Co., under

Ltd. common

control

Business
combinatio
Guangzhou Guangzhou, Guangzhou, Production n involving
Debaonongshan Guangdong Guangdong and Sales 59 entities not
Feed Co., Ltd. under

common

control

Business
Foshan combinatio
Hanheng Foshan, Foshan, Production n involving
Luggage Guangdong Guangdong and Sales 100 entities not
Manufacturing under

Co., Ltd. common

control

Shaoguan

Dachuan Shaoguan, Shaoguan, Production 100 Establishm
Biotechnology Guangdong Guangdong and Sales ent

Co., Ltd.

Liaoning Haid Shenyang, Shenyang, Production Establishm
Biotechnology Liaoning Liaoning and Sales 100 ent

Co., Ltd.
Guizhou

Hailongwang Qiannan, Guizhou Qiannan, Guizhou Sales 100 Establishm
Biotechnology ent

Co., Ltd.
Guangdong

Huashite Guangzhou, Guangzhou, Research Establishm
Testing Guangdong Guangdong and Sales 100 ent

Technology
Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Hebei Haimu Shijiazhuang, Shijiazhuang, Production Establishm
Biotechnology Hebei Hebei and Sales 100 ent

Co., Ltd.

Dali Dachuan Production Establishm
Biotechnology Dali, Yunan Dali, Yunan and Sales 100 ent

Co., Ltd.

Yunnan Hairui Production Establishm
Biotechnology Qujing, Yunnan Qujing, Yunnan and Sales 64 ent

Co., Ltd.
Henan

Haidajiuzhou Zhumadian, Zhumadian, Production 75 Establishm
Biotechnology Henan Henan and Sales ent

Co., Ltd.

Enshi Haida Production Establishm
Biotechnology Enshi, Hubei Enshi, Hubei and Sales 100 ent

Co., Ltd.

Ningguo Haid Xuancheng, Xuancheng, Production Establishm
Biotechnology Anhui Anhui and Sales 65 ent

Co., Ltd.

Chaozhou Haid Chaozhou, Chaozhou, Establishm
Biotechnology Guangdong Guangdong Sales 100 ent

Co., Ltd.

Tianjin Haixin Production Establishm
Biotechnology Tianjin Tianjin, China and Sales 100 ent

Co., Ltd.
Haixin

Biological Establishm
(Beijing) Beijing Beijing Sales 100 ent

Technology
Co., Ltd.

Dalian Haixin Production Establishm
Biotechnology Dalian, Liaoning Dalian, Liaoning and Sales 100 ent

Co., Ltd.
Shenzhen

Haixin Shenzhen, Shenzhen, Production 100 Establishm
Biotechnology Guangdong Guangdong and Sales ent

Co., Ltd.
Nanshan Haid

Biotechnology Huai’an, Jiangsu Huai’an, Jiangsu Production 70 Establishm
(Jinhu) Co., and Sales ent

Ltd.

Tongliao Haid Tongliao, Inner Tongliao, Inner Production Establishm
Biotechnology Mongolia Mongolia and Sales 100 ent

Co., Ltd.
Guangzhou

Haihan Finance Guangzhou, Guangzhou, Commercia 100 Establishm
Technology Guangdong Guangdong l service ent

Co., Ltd.
Nantong

Fengmu Nantong, Jiangsu Nantong, Jiangsu Trading 100 Establishm
Trading Co., ent

Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Sichuan

Haimufeng Chengdu, Sichuan Chengdu, Sichuan Production 100 Establishm
Agriculture Co., and Sales ent

Ltd.
Guangdong
Haizhihui

Breeding Guangzhou, Guangzhou, Research 53 15 Establishm
Technology Guangdong Guangdong and Sales ent

Service Co.,
Ltd.
Guangzhou
Nansha

Haishengyuan Guangzhou, Guangzhou, Production 100 Establishm
Aquaculture Guangdong Guangdong and Sales ent

Technology
Co., Ltd.
Leizhou Yuexiu
Haishengyuan

Shrimp Zhanjiang, Zhanjiang, Production 80 Establishm
Farming Guangdong Guangdong and Sales ent

Technology
Co., Ltd.
Dongying

Haishengyuan Dongying, Dongying, Production 100 Establishm
Aquaculture Shandong Shandong and Sales ent

Co., Ltd.

Weifang Haixin Weifang, Weifang, Production Establishm
Biotechnology Shandong Shandong and Sales 100 ent

Co., Ltd.
Wudi

Haishengyuan Binzhou, Binzhou, Production 60 Establishm
Aquaculture Shandong Shandong and Sales ent

Co., Ltd.

Jiangsu Haiwei Huai’an, Jiangsu Huai’an, Jiangsu Production 100 Establishm
Feed Co., Ltd. and Sales ent

Guangdong

Hairuike Guangzhou, Guangzhou, Research 100 Establishm
Biotechnology Guangdong Guangdong and Sales ent

Co., Ltd.
Hubei Haid

Seed Ezhou, Hubei Ezhou, Hubei Research 100 Establishm
Technology Province and Sales ent

Co., Ltd.
Qianjiang

Hailong Qianjiang,Hubei Qianjiang,Hubei Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd.
Pingjiang

Bairuilai Yueyang, Hunan Yueyang, Hunan Production 100 Establishm
Biotechnology and Sales ent

Co., Ltd.


Shareholding

Subsidiary Principal place Place of Business % Acquisition
of business registration nature Direct Indire method
ct

Zhuhai
Chenzhe

Private Equity Zhuhai, Zhuhai, Establishm
Fund Guangdong Guangdong Investment 100 ent

Management
Co., Ltd.(Note
5)
Guiyang

Haiyue Feed Guiyang, Guizhou Guiyang, Guizhou Production 100 Establishm
Technology and Sales ent

Co., Ltd.

Inner Mongolia Hohhot, Inner Hohhot, Inner Production Establishm
Haishan Feed Mongolia Mongolia and Sales 60 ent

Co., Ltd.

Huizhou Haid Huizhou,Guangdo Huizhou,Guangdo Production Other

Biotechnology ng ng and Sales 100 method

Co., Ltd.
Guangzhou

Hualaike Guangzhou, Guangzhou, Production Establishm
Testing Guangdong Guangdong and Sales 100 ent

Technology
Co., Ltd.

Huaibei Haid Production Establishm
Bio-Feed Co., Huaibei,Anhui Huaibei,Anhui and Sales 100 ent

Ltd.
Note：

Note 1: Chongqing Zhihai Feed Co., Ltd., a subsidiary of the Company, is renamed as Chongqing Kaizhou
Haid Biotechnology Co., Ltd. in May 2022.

Note 2: Guangzhou Haijingzhou Food Co., Ltd., a subsidiary of the Company, is renamed as Guangzhou
Hailingxian Food Co., Ltd. in September 2022.

Note 3: Foshan Nanhai Bairong Aquatic Farming Co., Ltd., a subsidiary of the Company, is renamed as
Guangdong BairongAquatic Farming Group Co., Ltd. in November 2022.

Note 4: Yichang Zhihai Feed Co., Ltd., a subsidiary of the Company, is renamed as Yichang Haid Feed Co.,
Ltd. in December 2022.

Note 5: Guangzhou Chenzhe Private Equity Fund Management Co., Ltd., a subsidiary of the Company, is
renamed as Zhuhai Chenzhe Private Equity Fund Management Co., Ltd. in December 2022.

(2).Significant Non-Wholly-Owned Subsidiaries

Subsidiary Non-controlling Profit/Loss of Current Period Dividends declared for non-controlling Closing balance of non-
(abbreviation) interests (%) attributable to non-controlling interests interests for Current Period controlling interests

Panasia Trading 20.00 22,988,263.04 13,941,925.38 136,713,829.32

Shandong Haiding 45.00 76,460,307.55 33,167,863.49 235,032,616.94

(3).Key Financial Information of Significant Non-Wholly-Owned Subsidiaries

Subsidiary 2022.12.31

(abbreviation) Current assets Non-current assets Total assets Current liabilities Non-current Total liabilities
liabilities

Panasia Trading 1,201,755,450.19 496,389,851.83 1,698,145,302.02 977,618,722.57 626,605.20 978,245,327.77

Shandong 1,560,583,808.64 630,327,189.61 2,190,910,998.25 1,537,330,238.02 166,389,660.67 1,703,719,898.69
Haiding

Continued (1)：

Subsidiary 2021.12.31

(abbreviation) Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities

Panasia Trading 1,041,583,593.00 482,669,272.72 1,524,252,865.72 874,998,238.72 2,034,184.17 877,032,422.89

Shandong 1,501,456,082.84 617,533,675.16 2,118,989,758.00 1,549,446,712.91 180,554,149.11 1,730,000,862.02
Haiding

Continued (2)：

Year ended 31/12/2022 Year ended 31/12/2021

Subsidiary Total Net cash flows Total Net cash flows
(abbreviation) Operating Net profit comprehensive from operating Operating Net profit comprehensive from
Income income activities Income income operating
activities

Panasia Trading 2,968,144,224.88 114,941,315.28 114,941,315.28 24,156,750.04 2,838,094,540.65 141,931,732.62 141,931,732.62 181,226,632.98


Year ended 31/12/2022 Year ended 31/12/2021

Subsidiary Total Net cash flows Total Net cash flows
(abbreviation) Operating Net profit comprehensive from operating Operating Net profit comprehensive from
Income income activities Income income operating
activities

Shandong 13,844,136,373.67 159,616,908.56 159,616,908.56 177,773,058.38 10,595,571,903.24 195,858,612.51 195,858,612.51 282,811,242.41
Haiding


(4).Transactions caused the change in Share of Owner’s Equity of Subsidiaries but control the Subsidiaries

① Changes in Share of Owner’s Equity of Subsidiaries

Timing of Shareholding percentage Shareholding percentage
Subsidiary equity Changed before changes (%) after changes (%)

Direct Indirect Direct Indirect

Sanya Fengmu

Agricultural 2022-1 100.00 70.00
Development Co.,

Ltd.

Yibin Zhihai Feed 2022-1 100.00 55.00
Co., Ltd.

Shijiazhuang

Huilong Feed Co., 2022-2 65.00 100.00
Ltd.

Handan Huilong 2022-2 65.00 100.00
Feed Co., Ltd.

Jingtai Haijingzhou

Fishery Technology 2022-4 55.00 100.00
Co., Ltd.

Guangdong Hisenor 2022-4 70.00 85.00
Group Co., Ltd.

Hunan Yitun

Ecological 2022-5 93.00 100.00
Agriculture Co., Ltd.

Guangdong

Haizhihui Breeding 2022-6 100.00 53.00 15.00
Technology Service

Co., Ltd.

② Impact of Transactions on Non-Controlling Interests and Owner’s equity Attributable to the parent
company

Sanya Fengmu Shijiazhuang Handan
Item Agricultural Yibin Zhihai Huilong Feed Huilong Feed
Development Feed Co., Ltd. Co., Ltd. Co., Ltd.
Co., Ltd.

Acquisition cost /

consideration of disposal

--Cash 1,738,656.96 - 3,444,000.00 2,310,000.00

--Fair value of non-cash - - - -
assets

Total acquisition cost / 1,738,656.96 - 3,444,000.00 2,310,000.00
consideration of disposal

Less: Share of subsidiary’s

net assets at the percentage of -1,801,918.34 -7,384,094.46 3,342,260.91 2,247,919.28
shareholding acquired or

disposed

Difference: Adjustment to 3,540,575.30 7,384,094.46 -101,739.09 -62,080.72
capital reserve


Continued:

Jingtai Guangdong
Haijingzhou Guangdong HunanYitun Haizhihui
Item Fishery Hisenor Ecological Breeding
Technology Co., Group Co., Agriculture Technology
Ltd. Ltd. Co., Ltd. Service Co.,
Ltd.

Acquisition cost /

consideration of disposal

--Cash 450,000.00 52,529,136.37 205,976.59 -

--Fair value of non-cash - - - -
assets

Total acquisition cost / 450,000.00 52,529,136.37 205,976.59 -
consideration of disposal

Less: Share of subsidiary’s

net assets at the percentage of -7,162,821.01 26,141,442.14 -9,447,703.11 -3,532,860.31
shareholding acquired or

disposed

Difference: Adjustment to -7,612,821.01 -26,387,694.23 -9,653,679.70 3,532,860.31
capital reserve

2 Interests inAssociates

①The Group had no significant joint ventures or associates during the period

②Summary of Financial Information of InsignificantAssociates

2022.12.31/ 2021.12.31/
Item Year ended Year ended 31/12/2021
31/12/2022

Associates:

Total carrying amount of investments 315,182,888.17 301,076,512.33

Totals calculated as shareholding percentage

--Net profit 46,505,412.37 -1,702,059.18

--Other comprehensive income - -

--Total comprehensive income 46,505,412.37 -1,702,059.18

VIII. Risks Management of Financial Instruments

The main financial instruments of the Group include cash at bank and on hand, held-for-trading financial
assets, notes receivable, accounts receivable, other receivables, other currentassets, entrusted loan issued and
advances to customer, other non-current financial assets, long-term receivables, short-term loans, held-for-
trading liabilities, notes payable, accounts payable, other payables, ,non-current liabilities due within one
year, long-term loans, lease liability and long-term payables. Details of various financial instruments have
been disclosed in the relevant notes. The risks associated with these financial instruments and the risk
management policies adopted by the Group to reduce these risks are described below. The management of
theGroupmanagesandmonitorstheseexposurestoensurethattheaboverisksarecontrolledwithina limited
range.

1. Objectives and Policies of Risk Management

The major risks caused by the Group's financial instruments are credit risk, liquidity risk and market risk
(including exchange rate risk, interest rate risk and commodity price risk).


The Group's purpose in risk management is to achieve an appropriate balance between risk and return,
minimize the negative impact of risk on the Group's operating performance. Based on the purpose of risk
management, the basic strategy of the Group's risk management is to identify and analyze various kind of
risks faced by the Group, set up an appropriate risk tolerance bottom line and design the internal control
process to monitor the risk level.The Group reviews the risk managementpolicyand relevantinternalcontrol
system to adapt to the changes of market or operations regularly. The Group’s internal audit department also
reviews regularly or randomly whether the performance of internal control system is complied with the risk
management policy.

The Board of Directors is responsible for planning and establishing the Group's risk management structure,
formulatingtheGroup'srisk managementpoliciesandrelatedguidelines,andsupervisingtheimplementation
of risk management measures. The Group has formulated risk management policies to identify and analyze
the risks faced by the Group. These risk management policies specify specific risks and cover many aspects
such as management of market risk, credit risk and liquidity risk. The Group regularly assesses changes in
themarketenvironmentandtheGroup’soperatingactivitiestodecidewhethertoupdatetheriskmanagement
policies and systems. Risk managementof the Group is carried out bythe relevantdepartments in accordance
with the policies approved by the Board of Directors, and these departments identify, evaluate and hedge
relevant risks through close cooperation with other business units of the Group.

The Group diversifies the risks of financial instruments through appropriate diversified investments and
business portfolios, and reduces the risk of concentration in a single industry, specific region, or specific
counterparty by formulating appropriate risk management policies.

(1) Credit Risk

Credit risk refers to the risk that the counterparty fails to fulfill its contractual obligations, resulting in
financial losses to the Group.

The Group manages credit risk on the basis of portfolio. Credit risk mainly arises from bank deposits, notes
receivable, accounts receivable, other receivables, entrusted loan issued and advances to customer etc.

The Group's bank deposits are mainly deposited in financial institutions with reputation and high credit
ratings. The Group expects that the credit risk of bank deposits is low.

With regard to notes receivable, accounts receivable, other receivables, loans and advances to customers, the
Groupestablishesrelevantpoliciestocontrolcreditrisk exposure.TheGroupassessesthecreditqualificationofcustomersbasedontheirfinancialstatus,creditrecordsandotherfactors,suchascurrentmarketconditions,
and sets corresponding creditperiods. The Group monitors the credit records of customers on a regular basis.
For customers with poor credit records, the Group will issue reminders in writing, shorten the credit period
or cancel the credit period, so as to ensure that the overall credit risk of the Group is within the controllable
range.

The debtors of the Group are spread in different industry and geographic region. The Group continuously
performs credit assessment on the debtors and purchase credit guarantee insurance when necessary.

The Group’s maximumtolerated credit risk exposure is the book value of everyfinancial asset on the balance
sheet. The Group also faces credit risk for providing financial guarantee. Please refer to Note XII. 2.

Accounts receivable due from the top five customers of the Group account for 10.35% of total accounts
receivable (2021: 15.43%).
(2) Liquidity Risk

Liquidity risk is the risk that the Group is short of funds to deliver cash or other financial assets or meet

other settlement obligations.

Each subsidiary of the Group is responsible for cash flow forecast. The financial companies of the Group
monitorsthelong-termandshort-termcapitalrequirementsatthegrouplevelbasedonthecashflowforecasts
of each subsidiary.The Group coordinates the surplus funds within the group through the funding pool plan
setup in the large financial institutions, and ensure that each member has sufficient cash reserves to meet the
payment obligations due for settlement. In addition, the Group entered into financing credit agreements with
main business banks to support the Group in meeting its obligations related to commercial bills.

The Group raises working capital through funds generated from operating business, bank and other
borrowings. As of December 31, 2022, the Group's unused bank loan amount was RMB 205, 54 million
(December 31, 2021: RMB 16,501 million).

(3) Market Risk

Market risk of financial instrument is the risk of fluctuation in the fair value or future cash flow due to
changes of market price, including interest rate risk, foreign exchange rate risk and other price risk.

Interest Rate Risk

Interestrate risk refers to the risk thatthe fair value or future cash flows of financialinstruments will fluctuate
due to changes in market interest rates. Interest rate risk can arise from confirmed interest-bearing financial
instruments and unrecognized financial instruments.

The Group's interest rate risk mainly arises from long-term and short term interest–bearing bank loans.
Financial liabilities with floating interest rates causes interest rate risks in cash flow to the Group and
Financial liabilities with fixed interest rates causes interest rate risks in fair value to the Group. The Group
determines the proportion of fixed and floating interest rate contracts according to current market situation
and maintain the appropriatemixture of the instruments with fixed andfloating interest rate byregular review
and monitoring.

The Group closely monitors the impact of changes in interest rates on the Group's interest rate risk. The
Group does not currently have an interest rate hedging policy. However, management is responsible for
monitoring interest rate risk and will consider hedging significant interest rate exposures as and when
required.Anincreaseininterestratescouldincreasethecostofnewinterest-bearingdebtandinterestexpense
on theGroup's outstanding interest-bearing debtwith floating interest rates and have a materialadverse effect
on the Group's financial results. Management will make timely adjustments based on the latest market
conditions, which may be in the form of interest rate swap arrangements to reduce interest rate risk.

Foreign Exchange rate risk

Foreign exchange rate risk is the risk of fluctuation of fair value or future cash flow of financial instrument
due to the changes of foreign exchange rate. Foreign exchange rate risk can arise from financial instrument
measured at foreign currency instead of reporting currency.

The Group’s principal business is operated in China and settled in RMB. The raw materials purchased and
imported by the Group have achieved a certain scale, and there is an increase in the transactions amount of
overseas subsidiaries of the Group overseas uses with other currencies other than RMB as their functional
currency. Therefore, fluctuations in RMB exchange rate have exerted certain impact on the Group’s business
operations.

As of December 31, 2022, the Group’s major monetary items in foreign currencies are financial assets and
financial liabilities denominated in US dollar, Vietnamese dong, rupee (refer to Note V. 68 (1) Monetary
items in foreign currencies for more details). Since other currencies are used less frequently and the amount
is relatively small, changes in their exchange rates has no significant impact on the business activities of the
Group.

The Group closely monitors the impact of exchange rate movements on the Group's exchange rate risk and
continuously monitor the size of the Group's foreign currency transactions and foreign currency assets and
liabilities in order to minimize its exposure to foreign exchange risk. To this end, the Group seeks to hedge
its foreign exchange risk by entering into forward exchange contracts or currency swap contracts as

appropriate.

Other price risk

Other price risk is the fluctuation risk due to the changes of market prices besides foreign exchange risk and
interestrateriskduetowhetherindividualfinancialinstrumentoritsissuerorallsimilarfinancialinstruments
traded in the market. It may be affected bythe changes of the price of goods or equity instrument. Other price
risk can arise from changes in commodity prices, stock market indices, equity instrument prices, and other
risk variables.

TheCompanyupholds the basic principle of serving spotgoods-- the spotprocurementprogram, and regards
risk control as the core principle. Meanwhile, it will adopt one or more than one arbitrage tool for hedging to
avoid the commodity price risk and credit risk etc., and changes in the fair value or cash flow of the arbitrage
tool are expected to offset all or part of the changes in the fair value or cash flow of the hedged item, in which
way, the impact of price fluctuations in raw materials and commodities on production and operations can
thus be mitigated.
2. Capital Management

The objective of the Group's capital management policy is to safeguard the Group's ability to continue as a
going concern, thereby providing returns to shareholders and benefiting other stakeholders, while
maintaining an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the method of financing, adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares and other equity
instruments or sell assets to reduce debt.

The Group monitors its capital structure on the basis of gearing ratio (i.e. total liabilities divided by total
assets).As of December 31, 2022, the Group's gearing ratio was 56.26% (December 31, 2021: 55.25%).

IX. Disclosures of Fair Value

Thelevelin whichfair value measurementis categorizedisdetermined bythe levelof the fairvaluehierarchy
of the lowest level input that is significant to the entire fair value measurement. The levels are defined as
follows:

Level 1 inputs: unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 inputs: inputs other than quoted prices included within Level 1 that are either directly or indirectly
observable for the assets or liabilities.

Level 3 inputs: inputs that are unobservable for assets or liabilities. (unobservable input)

1. Items andAmount Measured at Fair Value

As at December 31, 2022, assets and liabilities measured at fair value based on the three levels above are
shown as follows:

Item Level 1 Level 2 Level 3 Total

I. Recurring fair value

measurement

1. Held-for-trading financial assets 264,849,757.14 - 435,092,252.61 699,942,009.75

(1) Derivative financial assets 264,849,757.14 - 174,780,440.77 439,630,197.91

(2) Financial Products - - 260,311,811.84 260,311,811.84


Item Level 1 Level 2 Level 3 Total

2. Other non-current financial - - 266,944,754.12 266,944,754.12
assets

Total assets measured at fair value 264,849,757.14 - 702,037,006.73 966,886,763.87
on a recurring basis

3. Held-for-trading financial 46,533,780.00 - - 46,533,780.00
liabilities

Total liabilities measured at fair 46,533,780.00 - - 46,533,780.00
value on a recurring basis

The Group uses the date of occurrence of the event that results in the transition between levels as the point
at which the transition between levels is recognized. During the year, there was no transition between Level
1 and Level 2, nor was there any transfer to or from Level 3 in the fair value measurement of the Group's
financial assets and financial liabilities.

For financialinstruments traded in an active market, the Group determines their fair values using their quoted
prices in an active market; for financial instruments not traded in an active market, the Group uses valuation
techniques to determine their fair values.The valuation models used are mainlydiscounted cash flow models
and market comparable company models, etc. The inputs to the valuation techniques mainly include risk-
freeinterestrates,benchmark interestrates,exchangerates,creditspreads,liquiditypremiums,andilliquidity
discounts.

X. Related Parties and Related-Party Transactions

1. Parent company

Registered Shareholding Percentage of
Name Place of Business nature capital ratio in the voting rights in
registration (RMB ten Company (%) the Company
thousand) (%)

Guangzhou

Haihao Investment,

Investment Co., Guangzhou, trading, import

Ltd. (hereinafter Guangdong and export of 3,000.00 54.82 54.82
referred to as commodities and

“Guangzhou technologies

Haihao”)

Information on the Company's parent company:

Guangzhou Haihao is the ultimate controlling party of the Company and established on September 27, 2006.
Mr. Hua Xue holds a 39.75% of equity in Guangzhou Haihao, is the ultimate controller of the Company.
The ultimate controlling party of the Company is: Xue Hua.

In the reporting period, change of the registered capital of the parent company is as follows:

(RMB ten thousand)

As at 31/12/2021 Addition Reduction As at 31/12/2022

3,000.00 - - 3,000.00

2. Information on the subsidiaries of the Company

For information on the subsidiaries of the Company, refer to Note VII.1.

3. Information on joint ventures and associates of the Company


Joint ventures and associates that have related party transactions with the Group during this year or previous
year are as follows:

Name of joint ventures or associates Relationship with the Group

Guizhou Fuhai Chemicals Co, Ltd. Former associate, the Group hold 45%, was
cancelled during the period

Bangpu Seed Technology Co., Ltd. Associate, the Group holds 16% of equity

Foshan Haihang XingfaAgriculture andAnimal Associate, the Group holds 49% of equity

Husbandry Development Co., Ltd.

Alaer Ruili Heng Sheng Protein Co., Ltd. Associate, the Group holds 50% of equity

Wujiaqu Taikun Plant Protein Co., Ltd. Associate, the Group holds 50% of equity

Guangdong Zhongyu Duck Industry Co.Ltd. Associate, the Group holds 49% of equity

Sichuan Zhihui Fishing Machine Technology Co., Associate, the Group holds 40% of equity

Ltd.

4. Information on other related parties

Name Relationship with the Group

Luoding Xingfa Xingji Agriculture and Animal Subsidiary of Foshan Haihang Xingfa Agriculture
Husbandry Development Co., Ltd. andAnimal Husbandry Development Co., Ltd.

Ping’anfaAgriculture Co., Ltd. A wholly-owned subsidiary of an associate,
Vietnam Haid Yingtaogu Farm Co., Ltd.

Guangdong Haihaowan Development Co., Ltd. Subsidiary of holding shareholder Guangzhou
Haihao Investment Co., Ltd.

Guangzhou Haoyue Biotechnology Development Subsidiary of holding shareholder Guangzhou
Co., Ltd. Haihao Investment Co., Ltd.

Guangzhou Haihao Technology Industry Operation Subsidiary of the holding shareholder Guangzhou
Co., Ltd. Haihao Joint Venture

Guangzhou Haishengyuan Industrial Investment Limited company owned by directors and
Partnership (Limited Partnership) management of the Company as general partner

Guangzhou Haizhiyuan Industrial Investment Limited company owned by directors and
Partnership (Limited Partnership) management of the Company as general partner

Zhenxiong Qi Key management

Mingzhong Chen Key management

Zhijian Huang Key management

5. Transactions with related parties
(1) Purchases/sales

① Purchase of goods/receiving of services

Related party Nature of Year ended Year ended
transaction 31/12/2022 31/12/2021

Guizhou Fuhai Chemicals Co., Ltd. Raw material - 207,721,123.58

Alaer Ruili Heng Sheng Protein Co., Raw material 160,656,964.48 12,218,731.52
Ltd.

Wujiaqu Taikun Plant Protein Co., Raw material 169,559,403.43 25,519,785.45
Ltd.

Ping’anfaAgriculture Co., Ltd. Agricultural 2,788,201.68 1,091,064.32
products


Related party Nature of Year ended Year ended
transaction 31/12/2022 31/12/2021

Bangpu Seed Technology Co., Ltd Agricultural 3,331,880.00 1,714,800.00
products

Foshan Haihang Xingfa Agriculture Agricultural

and Animal Husbandry Development products 312,464.00 -
Co., Ltd.

② Sales of goods/rendering of services

Related party Nature of Year ended Year ended
transaction 31/12/2022 31/12/2021

FoshanHaihangXingfaAgricultureand Feed and animal

Animal Husbandry Development Co., healthcare products 85,733,206.56 98,937,016.41
Ltd.

Guizhou Fuhai Chemicals Co, Ltd. Services - 77,102.49

Luoding Xingfa Xingji Agriculture and Feed and animal

Animal Husbandry Development Co., healthcare products 7,289,347.50 12,443,660.70
Ltd.

Guangdong Zhongyu Duck Industry Feed and animal 13,855,118.42 3,189,036.31
Co.Ltd. healthcare products

Agricultural

Guangdong Haihaowan Development products,serivces 116,536.51 180,077.18
Co., Ltd. and animal

healthcare products

Feed and animal

Ping’anfaAgriculture Co., Ltd. healthcare 64,577,209.07 40,868,084.76
products,service

Guangzhou Haihao Investment Co., Service - 1,888.33
Ltd.

Guangzhou Haihao Technology Services - 11,040.73
Industry Operation Co., Ltd.

Wujiaqu Taikun Plant Protein Co., Ltd. Services 450,000.00 -

Alaer Ruili Heng Sheng Protein Co., Services 406,785.71 -
Ltd.

Guangzhou Haoyue Biotechnology Services 11,490.00 -
Development Co., Ltd.

Agricultural

Sichuan Zhihui Fishing Machine products, Feed and 7,482.50 -
Technology Co., Ltd. animal healthcare

products

Bangpu Seed Technology Co., Ltd. Feed and animal 1,100.00 -
healthcare products

(2) Trust/contracting arrangement

No such transaction during the reporting period.

(3) Lease

①As the lessor


Type of assets Lease income Lease income
Lessee leased recognized in recognized in
2022 2021

Guangzhou Haihao Investment Co., House building 54,000.00 51,428.57
Ltd.

②As the lessee

Lessor Type of assets Lease expense paid in Lease expense paid in
leased 2022 2021

Mingzhong Chen House building 1,420,742.90 272,180.00

Note: The price in the above lease with the related party was determined based on market prices upon
negotiation.

The Company did not acquire any new right-to-use assets during the year as the lessee.

Interest expense on lease liabilities recognized by the Company as lessee during the year:

Lessor Type of assets leased Interest expense Interest expense
recognized in 2022 recognized in 2021

Mingzhong Chen Office 92,332.43 -

(4) Guarantee

No such transaction during the reporting period.

(5) Funding from related party

No such transaction during the reporting period.

(6) Transfer of assets and debt restructuring

The Company and Guangdong Hisenor Group Co., Ltd. employed own capital with Guangzhou
Haishengyuan Industrial Investment Partnership (Limited Partnership), Guangzhou Haizhiyuan Industrial
Investment Partnership (Limited Partnership) and Ningbo Zhuoyue Enterprise Management Partnership
(Limited Partnership) jointly invested capital of RMB 95 million in the subsidiary Guangdong Haizhihui
Breeding Technology Service Co., Ltd. The Company and Guangdong Hisenor Group Co., Ltd. increased
capital by RMB 48 million and RMB 15 million respectively, while the related party Guangzhou
Haishengyuan Industrial Investment Partnership (Limited Partnership), Guangzhou Haizhiyuan Industrial
Investment Partnership (Limited Partnership) increased capital by RMB 15 million and RMB 10 million
respectively.As of the reporting date, the increased capital has been fully paid.

(7) Remuneration of key management personnel

Information about remuneration is as follows:

(RMB ten thousand)

Item Year ended 31/12/2022 Year ended 31/12/2021

Remuneration of key management personnel 5,624.34 4,669.52

(8) Other related party transactions

No such transaction during the reporting period.

6. Receivables from and payables to related parties

(1) Receivables from related parties

2022.12.31 2021.12.31

Provision Provision
Item Related party Book value for bad and Book value for bad and
doubtful doubtful
debts debts

Foshan Haihang

XingfaAgriculture

Accounts andAnimal 21,600.00 490.32 48,720.00 862.34
receivable Husbandry

Development Co.,

Ltd.

Luoding Xingfa

XingjiAgriculture

Accounts andAnimal - - 13,800.00 244.26
receivable Husbandry

Development Co.,

Ltd.

Accounts Guangdong

receivable Zhongyu Duck 6,791,454.22 1,482,169.01 6,015,742.98 131,183.36
Industry Co.Ltd.

Guangdong

Accounts Haihaowan - - 8,207.36 150.00
receivable Development Co.,

Ltd.

Prepayment Bangpu Seed

Technology Co., 360,000.00 - 2,000,000.00 -
Ltd

Prepayment Alaer Ruili Heng

Sheng Protein Co., 961,821.15 - 98,556.00 -
Ltd

Prepayment Wujiaqu Taikun

Plant Protein Co., 240,071.72 - 454,475.15 -
Ltd

Other receivables Mingzhong Chen - - 999,810.00 9,998.10

Foshan Haihang

Xingfa Agriculture

Other receivables and Animal 12,544.17 420.23 12,547.53 271.03
Husbandry

Development Co.,

Ltd.

Other receivables Guizhou Fuhai - - 100,000.00 1,000.00
Chemicals Co, Ltd.

Guangdong

Other receivables Zhongyu Duck 5,977,747.20 3,432,594.77 5,977,747.20 2,077,900.68
Industry Co.Ltd.

Foshan Haihang

Xingfa Agriculture

Other non- and Animal - - 84,565.00 -
current assets Husbandry

Development Co.,

Ltd.


2022.12.31 2021.12.31

Provision Provision
Item Related party Book value for bad and Book value for bad and
doubtful doubtful
debts debts

Sichuan Zhihui

Other non- Fishing Machine 597,000.00 - - -
current assets Technology Co.,

Ltd.

Long-term Mingzhong Chen 999,810.00 - - -
receivables
(2) Payables to related parties

Item Related party 2022.12.31 2021.12.31

Notes payable Alaer Ruili Heng Sheng Protein Co., Ltd 35,175,000.00 8,000,000.00

Notes payable Wujiaqu Taikun Plant Protein Co., Ltd 40,425,000.00 6,000,000.00

Contract Foshan Haihang XingfaAgriculture andAnimal 538,769.56 135,592.12
Liabilities Husbandry Development Co., Ltd.

Contract Luoding Xingfa XingjiAgriculture andAnimal - 8,232.30
Liabilities Husbandry Development Co., Ltd.

Other payables Foshan Haihang Xingfa Agriculture and Animal 1,849.00 -
Husbandry Development Co., Ltd.

Other payables Zhijian Huang 16,106.82 -

Other payables Zhenxiong Qi 3,396.70 -

Lease liabilities Mingzhong Chen 442,919.72 -

Non-current

liabilities within Mingzhong Chen 1,346,355.78 -
1 year

XI. Share-based Payments
1. Information on share-based payments

Total equity instruments granted by the Company during the 6,798,400.00
year

Total equity instruments exercised during the year -

Total equity instruments forfeited in the current Period 9,232,207.00

(1) The grant price after dividends for
the first stock option incentive plan in
2021 was RMB 59.21 per share, with
remaining terms of 5.33, 17.33, 29.33,
Exercise price of outstanding share options at the end of the 41.33 and 53.33 months, respectively
year and residual life of the share options contracts (2) The grant price after dividends for
the 2022 reserved grant stock option
plan was RMB 59.21 per share, with
remaining terms of 16.50, 28.50, 40.50
and 52.50 months, respectively.

The grantprice of the 2021 fourth phase
The price of other outstanding equity instruments at the end of ofEmployeeStockOwnershipPlanwas
the year and residual life of relevant contracts RMB0.00 per share with a remaining
term of 12 months.


2. Information on equity-settled share-based payments

Method to determine the fair value of equity instruments at Using Black-Scholes option pricing
grant dates model to calculate fair value of the
Company’s share options

When the required performance
Basis of the number of equity expected to vest conditions are met for the corresponding
periods of the equityinstrument incentive
plans

Reasons for significant differences of estimation between None

31/12/2022 and 31/12/2021

Accumulated amount in capital reserve for equity-settled 663,312,538.97

Total expenses recognized for equity-settled share-based 220,848,526.26

3. Information on cash-settled share-based payments

No such event during the reporting period.

4. Information on modification and termination of share-based payments

No such event during the reporting period.

XII. Commitments and Contingencies
1. Significant Commitments

As at December 31, 2022, there was no significant commitment to be disclosed.

2. Contingencies

(1) Contingent liabilities arising from guarantee provided to other entities and related financial impacts.

As at December 31, 2022, the Group provided guarantees for the following loans:

Amount

Company Name Guarantee (RMB ten Period Note
thousand)

1.Subsidiaries

Wholly-owned subsidiaries and Bank loan financing and 1-10 year

holding subsidiaries within the payable for raw material 503,301.79 s

scope of consolidation purchased

2. Other companies

Farmers and distributors of holding Guarantees for financings to 82,932.40 1-3 years

subsidiaries purchase the Group’s products

Total 586,234.19

As at December 31, 2022, the Group had no other contingencies to be disclosed.

XIII. Post balance sheet events

As atApril 21, 2023, the Group had no material post-balance sheet non-adjusting events to be disclosed.

1. Profit appropriations after balance sheet date

According to the profit distribution plan approved by the

Board of Directors onApril 21, 2023, it is planned to issue a

Profit distributions or dividends cash dividend of RMB 4.50 (including tax) for every 10 shares
proposed base on the total share capital on the share registration date

when the distribution plan is implemented. The distribution

plan will be implemented after approval is granted in the

general meeting of shareholders

2. Significant sales returns

As atApril 21, 2023, the Group had no material sales returns to be disclosed.

3. Issue of additional shares

The Company plans to issue shares to Mr Xue Hua, the actual controller, and the number of shares to be
issued will not exceed 33,370,411 shares (inclusive) and the amount to be raised will not exceed
RMB1,500.00 million (inclusive). In March 2023, the Company received the "Notice of Acceptance of
Application for Issuance of Shares to Specified Objects by Guangdong Haid Group Co., Limited " (SZSE
Shangshen [2023]No. 212) issued byShenzhenStockExchange,and theapplication for issuance is currently
under review.

4. Other events after the balance sheet date

As atApril 21, 2023, there was no such event to be disclosed.

XIV. Other Significant Events

1. Correction ofAccounting Errors in Prior Periods

There was no correction of accounting errors in prior periods during the reporting period.

2. Significant Debt Restructuring

There was no significant debt restructuring during the reporting period.

3. SignificantAsset Swap

There was no significant asset swap during the reporting period.

4. Transfer and Sales of significant assets

There was no such event during the reporting period.

5. Others

There were no other significant events to be disclosed during the reporting period.

XV. Notes to the Company’s financial statements

1. Other Receivables

Item As at 12/31/2022 As at 12/31/2021

Interest receivables - -

Dividends receivables - 900,009.00

Other receivables 13,125,884,408.71 13,206,320,840.29


Item As at 12/31/2022 As at 12/31/2021

Total 13,125,884,408.71 13,207,220,849.29

(1) Dividends Receivable

Item As at 12/31/2022 As at 12/31/2021

CITIC agricultural industry fund management Co., Ltd. - 900,009.00

Sub-total - 900,009.00

Less: Provision for bad and doubtful debts - -

Total - 900,009.00

(2) Other receivables

① Other receivables by aging

Aging As at 12/31/2022 As at 12/31/2021

Within 1 year 13,118,142,082.44 13,204,957,947.01

1 to 2 years 8,578,062.40 2,109,996.22

2 to 3 years 774,640.00 -

3 to 4 years - 300,000.00

4 to 5 years 59,809.00 20,292.00

Over 5 years 2,050.00 1,750.00

Sub-total 13,127,556,643.84 13,207,389,985.23

Less: Provision for bad and doubtful 1,672,235.13 1,069,144.94
debts

Total 13,125,884,408.71 13,206,320,840.29

② Other receivables disclosed by nature

Item As at 12/31/2022 As at 12/31/2021

Guarantee deposit 129,779,191.38 70,214,309.25

Receivable due from related parties with the scope of 12,978,097,436.52 13,116,299,469.32
consolidation

Petty cash 1,034,700.00 3,979,579.03

Others 18,645,315.94 16,896,627.63

Total 13,127,556,643.84 13,207,389,985.23

③ Provision for bad and doubtful debts

Stage 1 Stage 2 Stage 3

Lifetime Lifetime

Provision for bad and doubtful 12-month expected credit expected credit

debts expected credit losses losses Total
losses (credit (credit

impairment has impairment has

not yet occur) occurred)

Balance at 31/12/2021 1,069,144.94 - - 1,069,144.9
4


Stage 1 Stage 2 Stage 3

Lifetime Lifetime

Provision for bad and doubtful 12-month expected credit expected credit

debts expected credit losses losses Total
losses (credit (credit

impairment has impairment has

not yet occur) occurred)

In the current period

-Transfer into stage 2 - - - -

-Transfer into stage 3 - - - -

-Reversal back to stage 2 - - - -

-Reversal back to stage 3 - - - -

Accrual in the current period 603,090.19 - - 603,090.19

Reversal in the current period - - - -

Recovery in the current period - - - -

Write-off in the current period - - - -

Other movement - - - -

Balance at 31/12/2022 1,672,235.13 - - 1,672,235.1
3

④ Recoveries or reversals of provision for bad and doubtful debts in the current period

Movement As at
Category 2021.12.31 Accrual Recoveries Written- Others 2022.12.31
or reversals off

Other 1,069,144.94 603,090.19 - - - 1,672,235.13
receivables

⑤ There were no written-off in other receivables during current period.

⑥ Other receivables with top five debtors

Proportion in Provision fo
Debtor Payment nature Book balance Aging total other r bad and
receivables doubtful
(%) debts

Receivable due from

Unit 7 related parties with 1,036,815,164.72 Within 7.90 -
the scope of one year

consolidation

Receivable due from

Unit 8 related parties with 786,070,800.00 Within 5.99 -
the scope of one year

consolidation

Receivable due from

Unit 9 related parties with 442,286,013.40 Within 3.37 -
the scope of one year

consolidation


Proportion in Provision fo

Debtor Payment nature Book balance Aging total other r bad and

receivables doubtful

(%) debts

Receivable due from

Unit 10 related parties with 398,731,308.90 Within 3.04 -

the scope of one year

consolidation

Receivable due from

Unit 11 related parties with 381,165,262.63 Within 2.90 -

the scope of one year

consolidation

Total -- 3,045,068,549.65 -- 23.20 -

⑦ There were no other receivables associated with government subsidies as at December 31, 2022.

⑧ No other receivables were derecognized due to transfer of financial assets during the current period.

⑨ There were no such cases during current period where the Group had transferred an other receivables but

continued to be involved in the assets or liabilities associated with that other receivables.

2. Long-Term Equity Investments

2022.12.31 2021.12.31

Item Provision Carrying Provision Carrying

Book value for amount Book value for amount

impairment impairment

Investment

in 9,492,891,848.44 - 9,492,891,848.44 6,302,346,221.96 - 6,302,346,221.96

Subsidiary

Investment

in 10,518,210.65 - 10,518,210.65 28,837,926.09 - 28,837,926.09

Associate

Total 9,503,410,059.09 - 9,503,410,059.09 6,331,184,148.05 - 6,331,184,148.05

(1) Investment in Subsidiary

Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

BINH DINH HAI 150,782.79 - - 150,782.79 - -
LONG CO.,LTD
DONG NAI HAID

FARM COMPANY 107,112.62 - - 107,112.62 - -
LIMITED

HAI DAI COMPANY 31,600.82 - - 31,600.82 - -
LIMITED

HAI DUONG HAID 1,538,324.60 - - 1,538,324.60 - -
COMPANY LIMITED

HAID (ECUADOR) 762,576.62 755,188.64 - 1,517,765.26 - -
FEED CIA.LTDA.

Haid Egypt Co.,Ltd 626,139.68 - - 626,139.68 - -


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

HAID FEED 1,006,362.53 - - 1,006,362.53 - -
COMPANY LIMITED

Haid International 244,647,447.12 42,070.78 - 244,689,517.90 - -
Group Limited
Haid Lanking

International Trading 93,722.45 80,331.46 - 174,053.91 - -
Inc.
HISENOR VIET NAM

AQUATIC BREEDING 113,427.06 77,437.30 190,864.36 - - -
CO.,LTD

KINGHILL 174,904,736.80 177,743,156.72 - 352,647,893.52 - -
HOLDINGS PTE.LTD.

LANKING PTE.LTD. 472,920,568.14 158,188,111.00 - 631,108,679.14 - -

LONG SHENG

INTERNATIONAL 115,643.73 100,004.47 - 215,648.20 - -
CO.,LTD
PT HISENOR

TECHNOLOGY 259,119.01 - - 259,119.01 - -
INDONESIA
PT.HAIDA

AGRICULTURE 1,710,431.88 - - 1,710,431.88 - -
INDONESIA

PT.HAIDASURABAYA 131,284.06 - - 131,284.06 - -
TRADING
SHENG LONG BIO-

TECH 2,000,138.72 904,401.32 - 2,904,540.04 - -
INTERNATIONAL
CO.,LTD
SHENG LONG

INTERNATIONAL 262,308.02 - - 262,308.02 - -
LTD.
SHENGLONG BIO-

TECH(INDIA)PRIVATE 619,294.98 296,967.34 - 916,262.32 - -
LIMITED
THANG LONG(VINH

LONG)BIOTECH 8,383.38 143,818.76 - 152,202.14 - -
CO.,LTD

VINH LONG HAI DAI 775,536.47 - - 775,536.47 - -
CO.,LTD

Anhui Haid Feed Co., 12,271,122.13 428,137.27 - 12,699,259.40 - -
Ltd.

Anlu Haid Feed Co., 19,998.26 20,353,356.39 - 20,373,354.65 - -
Ltd.
Anyang Haihe

Agriculture andAnimal 213,664.48 109,261.69 - 322,926.17 - -
Husbandry Technology
Co., Ltd.

Anyang Haiyue Feed 42,655.47 58,356.40 - 101,011.87 - -
Technology Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Anshan Dachuan Feed 613,130.03 2,500,000.00 - 3,113,130.03 - -
Technology Co., Ltd.

Baotou Haicheng Feed 5,100,000.00 - 5,100,000.00 - - -
Co., Ltd.
Baoji HaidAgriculture

andAnimal Husbandry - 50,576.15 - 50,576.15 - -
Co., Ltd.
Binyang County

Hejiyitun Ecological 88,662.27 81,302.72 - 169,964.99 - -
Agriculture Co., Ltd.
Binyang Yitun

EcologicalAgriculture 653,667.93 517,481.62 - 1,171,149.55 - -
Co., Ltd.

Binzhou Haiding Feed 203,798.37 176,237.38 - 380,035.75 - -
Co., Ltd.

Binzhou Haiying Food 59,717.66 428.17 - 60,145.83 - -
Co., Ltd.
Changyi Haijingzhou

Biological Technology 230,339.58 466,140.76 - 696,480.34 - -
Co., Ltd.

Changzhou Haid Bio- 28,420,598.54 2,780,373.27 - 31,200,971.81 - -
Feed Co., Ltd.

Chengdu Haid 18,883,644.71 1,385,304.26 - 20,268,948.97 - -
Biotechnology Co., Ltd.
Chengnan Development

Zone Hairong Livestock 76,811.52 - 76,811.52 - - -
Farming Service
Specialized Cooperative

Dali Dachuan 109,930.03 10,201,711.52 - 10,311,641.55 - -
Biotechnology Co., Ltd.

Dali Haid Biotechnology - 15,021,795.37 - 15,021,795.37 - -
Co., Ltd.

Dali Haiwang Feed Co., 135,843.68 76,628.04 - 212,471.72 - -
Ltd.

Dalian Haid Rongchuan 50,465,521.32 76,086.89 - 50,541,608.21 - -
Trading Co., Ltd.

Shanxian Zhongyi 729,762.76 454,534.75 - 1,184,297.51 - -
Haiding Feed Co., Ltd.
Deyang Dachuan

Agriculture andAnimal 397,084.74 40,767,698.80 - 41,164,783.54 - -
Husbandry Technology
Co., Ltd.

Dingtao Haiding Feed 176,883.49 - 176,883.49 - - -
Co., Ltd.
Dingtao Hairong

Livestock Farming 274,203.58 - 274,203.58 - - -
Service Specialized
Cooperative


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Dongguan Haid Feed 23,236,380.49 1,276,625.96 - 24,513,006.45 - -
Co., Ltd.

Dongguan Haiqi Feed 339,336.54 76,549.98 - 415,886.52 - -
Co., Ltd.

Dongying Haijingzhou 30,632.65 109,681.55 - 140,314.20 - -
Biotechnology Co., Ltd.

Duyun Yitun Ecological 562,809.34 327,940.71 - 890,750.05 - -
Agriculture Co., Ltd.

Ezhou Haid Feed Co., 5,080,707.50 1,197,996.11 - 6,278,703.61 - -
Ltd.
Ezhou Haifeng

EcologicalAgriculture 108,534.49 93,856.65 - 202,391.14 - -
Co., Ltd.
Enping Fengwo

Agriculture andAnimal 649,531.02 255,434.31 - 904,965.33 - -
Husbandry Co., Ltd.

Enping Yitun Ecological 405,578.41 182,835.89 - 588,414.30 - -
Agriculture Co., Ltd.

Enshi Haida - 5,000,000.00 - 5,000,000.00 - -
Biotechnology Co., Ltd.
Feicheng He Ruifeng

Agricultural Science 401,041.04 177,301.22 - 578,342.26 - -
And Technology Co.,
Ltd.

Feixian Hairuida Feed 567,114.40 176,288.82 - 743,403.22 - -
Co., Ltd.
Fufeng CountyYitun

EcologicalAgriculture 297,634.01 272,510.11 - 570,144.12 - -
Co., Ltd.

Foshan Haid Beacon 4,527,306.45 384,901.65 - 4,912,208.10 - -
Feed Co., Ltd.

Foshan Lianduoli Feed 94,087.19 - 19,166.78 74,920.41 - -
Co., Ltd.

Foshan Dazhi - 332,504.15 - 332,504.15 - -
Biotechnology Co., Ltd.

Foshan Haihang Feed 24,648,066.64 859,826.71 - 25,507,893.35 - -
Co., Ltd.

Foshan Haipu Feed Co., 7,672,422.51 209,036.62 - 7,881,459.13 - -
Ltd.

Foshan Sanshuifanling 16,449,108.34 301,310.31 - 16,750,418.65 - -
Feed Co., Ltd.

Fujian Haid Feed Co., 103,391,046.32 1,102,078.64 - 104,493,124.96 - -
Ltd.

Fuzhou Haid Feed Co., 619,723.11 85,583,334.22 - 86,203,057.33 - -
Ltd.

Gansu Haid Feed Co., 143,971.40 135,818.87 - 279,790.27 - -
Ltd.

Ganzhou Haid 6,492,019.55 46,196,709.60 - 52,688,729.15 - -
Biotechnology Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Ganzhou Hailong Feed 5,313,220.37 - 41,709.44 5,271,510.93 - -
Co., Ltd.

Ganzhou Lianduoli Feed 19,060,985.16 125,290.91 - 19,186,276.07 - -
Technology Co., Ltd.

Gaoan Haid 1,194,572.35 41,089,199.86 - 42,283,772.21 - -
Biotechnology Co., Ltd.
Gaomi Haihe

Agriculture andAnimal - 44,193.85 - 44,193.85 - -
Husbandry Technology
Co., Ltd.
Gaotang Haiding

Agriculture andAnimal - 54,457.93 - 54,457.93 - -
Husbandry Co., Ltd.

Gaotang Huayu Swine 72,514.33 47,009.21 - 119,523.54 - -
Co., Ltd.

Gaozhou Haiyuan 51,224.93 208,250.66 - 259,475.59 - -
Agriculture Co., Ltd.

Gaozhou SanheAnimal 454,341.55 193,032.53 - 647,374.08 - -
Husbandry Co., Ltd.
Guangdong

BaishengyuanAquatic - 34,265.83 - 34,265.83 - -
Farming Co., Ltd.
Guangdong Bairong

Aquatic Farming Group 2,228,118.34 676,974.19 - 2,905,092.53 - -
Co., Ltd.
Guangdong Haid

Livestock Veterinary 53,168,180.69 1,195,501.48 - 54,363,682.17 - -
Research Institute Co.,
Ltd.
Guangdong Haid

International Trade Co., 100,000,000.00 - - 100,000,000.00 - -
Ltd.

Guangdong Haifulai - 3,084,904.21 - 3,084,904.21 - -
Biotechnology Co., Ltd.
Guangdong Hairuite Pet

Nitribution Technology 10,298,818.08 - 19,190.95 10,279,627.13 - -
Co., Ltd.

Guangdong Hisenor 6,245,411.30 2,821,094.54 - 9,066,505.84 - -
Group Co., Ltd.
Guangdong Hinter

Biotechnology Group 87,939,872.91 2,557,233.61 - 90,497,106.52 - -
Co., Ltd.
Guangdong Haizhihui

Breeding Technology - 53,000,000.00 - 53,000,000.00 - -
Service Co., Ltd.
Guangdong Huashite

Testing Technology Co., - 3,849.46 - 3,849.46 - -
Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Guangdong Shunde

Haid Biotechnology Co., 5,695,099.76 304,924.10 - 6,000,023.86 - -
Ltd.

Guangxi Haid Feed Co., 110,729,938.45 442,429.24 15,000,000.00 96,172,367.69 - -
Ltd.

Guangxi Rongchuan 183,418.54 133,065.75 - 316,484.29 - -
Feed Co., Ltd.

Guangxi Ronghai 86,886.15 252,424.35 - 339,310.50 - -
Fishery Co., Ltd.

GuangzhouAnan 89,815.96 186,252.52 - 276,068.48 - -
Logistics Co., Ltd.
Guangzhou Haid

Technology 654,207.76 463,306.77 - 1,117,514.53 - -
Development Co., Ltd.
Guangzhou Haifeng

Breeding Service Co., - 38,568.33 - 38,568.33 - -
Ltd.

Guangzhou Haijian 1,000,000.00 120,500,000.00 - 121,500,000.00 - -
Investment Co., Ltd.

Guangzhou Hailingxian - 14,127.33 - 14,127.33 - -
Food Co., Ltd.

Guangzhou Hailong 5,121,479.05 - - 5,121,479.05 - -
Feed Co., Ltd.

Guangzhou Haiki 532,556.80 1,085,906.51 - 1,618,463.31 - -
Technology Co., Ltd.
Guangzhou

Haishengyuan 11,642.38 - - 11,642.38 - -
Biotechnology Co., Ltd.

Guangzhou Haishengke 1,000,000.00 260,270,000.00 - 261,270,000.00 - -
Investment Co., Ltd.

Guangzhou Haiyiyuan 18,714.67 - - 18,714.67 - -
Biotechnology Co., Ltd.
Guangzhou Haiyin

Financing Guarantee 250,914,722.96 522,012.48 - 251,436,735.44 - -
Co., Ltd.

Guangzhou Haiyuan 50,143,037.99 32,007.92 - 50,175,045.91 - -
Factoring Co., Ltd.

Guangzhou Haiyuan 501,828,987.73 1,233,020.51 - 503,062,008.24 - -
Microfinance Co., Ltd.

Guangzhou Mutai Feed 570,890.30 36,255.61 - 607,145.91 - -
Technology Co., Ltd.

Guangzhou Nansha Haid 5,411,980.39 2,468,446.53 - 7,880,426.92 - -
Biotechnology Co., Ltd.

Guangzhou Nongzhidao 6,064,392.50 159,359.40 - 6,223,751.90 - -
Feed Co., Ltd.
Guangzhou Punong

Investment Management - 4,600,000.00 - 4,600,000.00 - -
Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Guangzhou Rongda

Aquatic Products 402,296.63 264,960.28 - 667,256.91 - -
Technology Co., Ltd.
Guangzhou Ronghai

Breeding Technology - 24,442,363.26 - 24,442,363.26 - -
Co., Ltd.

Guangzhou Chenzhao 30,000,000.00 10,000,000.00 - 40,000,000.00 - -
Investment Co., Ltd.

Guangzhou Dachuan 18,227,213.92 3,256,525.17 - 21,483,739.09 - -
Feed Co., Ltd.
Guangzhou Danong

Enterprise Management 500,000.00 - - 500,000.00 - -
Co., Ltd.

Guangzhou Denong 5,684.55 89,192.79 - 94,877.34 - -
Feed Co., Ltd.

Guangzhou Haid Feed 14,010,022.09 129,310.59 - 14,139,332.68 - -
Co., Ltd.
Guangzhou

Haifengchang Enterprise 500,000.00 - - 500,000.00 - -
Management Co., Ltd.

Guangzhou Haihe Feed 550,000.00 107,142,400.00 - 107,692,400.00 - -
Co., Ltd.

Guangzhou Haiwei Feed 17,280,362.08 678,528.75 - 17,958,890.83 - -
Co., Ltd.
Guangzhou Heshengtang

Veterinary 21,615,669.90 996,548.27 - 22,612,218.17 - -
Pharmaceutical Co., Ltd.

Guangzhou Heshengtang 3,330,000.00 - - 3,330,000.00 - -
Biotechnology Co., Ltd.
Guangzhou Meinong

Investment Management 247,442,807.00 107,653,767.00 - 355,096,574.00 - -
Co., Ltd.

Guangzhou Rongchuan 15,109,352.88 297,765.59 - 15,407,118.47 - -
Feed Co., Ltd.

Guangzhou Runchuan 250,000,000.00 - - -
Investment Co., Ltd. 1,219,812,949.78 1,469,812,949.78

Guangzhou Yitun Swine

Industry Investment Co., 7,078,090.89 4,024,067.91 - 11,102,158.80 - -
Ltd.

Guangzhou Shunkang 47,631.08 66,698.58 - 114,329.66 - -
Aquaculture Co., Ltd.
Guangzhou Xingnong

EcologicalAgriculture 568,080.21 29,471,235.00 - 30,039,315.21 - -
andAnimal Husbandry
Development Co., Ltd.
Guangzhou Yannong

Investment Management 11,244,450.00 8,513,659.00 - 19,758,109.00 - -
Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Guangzhou Changsheng 10,453,390.54 188,741.41 - 10,642,131.95 - -
Logistics Co., Ltd.
Guigang Donghuang

BreedingAnd Breeding 119,805.46 167,842.62 - 287,648.08 - -
Co., Ltd.
Guigang Gangbei

District Yitun Ecological 695,514.70 382,683.63 - 1,078,198.33 - -
Agriculture Co., Ltd.

Guigang Haid Feed Co., 7,563,632.41 1,237,938.41 - 8,801,570.82 - -
Ltd.
Guigang Hairong

Farming Service 80,966.98 - 80,966.98 - - -
Specialized Cooperative
Guigang Qintang

District Yitun Ecological 12,282.92 - - 12,282.92 - -
Agriculture Co., Ltd.

Guiyang Dachuan - 5,111,157.17 - 5,111,157.17 - -
Biotechnology Co., Ltd.

Guiyang Haid Zhihai 419,833.57 356,767.16 - 776,600.73 - -
Feed Co., Ltd.

GuizhouAikexin Swine 289,408.67 249,736.55 - 539,145.22 - -
Breeding Co., Ltd.

Guizhou Hailongwang - 98,178.23 - 98,178.23 - -
Biotechnology Co., Ltd.
Guiping Yitun

EcologicalAgriculture 14,218.50 - - 14,218.50 - -
Co., Ltd.

Haid Pet Care (Weihai) 163,309.48 77,310.11 - 240,619.59 - -
Co., Ltd.

Haid Pet Care Co., Ltd. 10,587,590.41 357,547.66 - 10,945,138.07 - -

Nanshan Haid

Biotechnology (Jinhu) - 21,502,343.05 - 21,502,343.05 - -
Co., Ltd.

Hainan BairongAquatic 354,193.69 425,759.41 - 779,953.10 - -
Products Co., Ltd.

Hainan Haid - 220,865.32 - 220,865.32 - -
Biotechnology Co., Ltd.
Hainan HaidAquatic

Seed Industry 236,500.90 15,350,790.89 - 15,587,291.79 - -
Development Co., Ltd.

Hainan Hisenor Marine 2,351,386.78 1,389,112.10 - 3,740,498.88 - -
Biotechnology Co., Ltd.
Hainan Zhuangmei

Agriculture andAnimal 11,150,732.94 30,866,904.22 - 42,017,637.16 - -
Husbandry Co., Ltd.

Tianjin Haixin 27,371.13 145,389.90 - 172,761.03 - -
Biotechnology Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Haixin Biological

(Beijing) Technology - 20,127.66 - 20,127.66 - -
Co., Ltd.

Handan Huilong Feed 124,160.61 119,126.06 - 243,286.67 - -
Co., Ltd.

Hexian Haid 482,917.27 90,420,241.95 - 90,903,159.22 - -
Biotechnology Co., Ltd.

Hebei Haimu - 592,584.63 - 592,584.63 - -
Biotechnology Co., Ltd.

Henan Haidajiuzhou 7,518,190.56 199,850.44 - 7,718,041.00 - -
Biotechnology Co., Ltd.

Henan Haiding Feed 118,046.61 110,341.96 - 228,388.57 - -
Co., Ltd.
Henan HaiheAgriculture

andAnimal Husbandry 6,831,572.50 - 19,312.83 6,812,259.67 - -
Technology Co., Ltd.

Henan Mugaole Feed 34,604.72 357,309.69 - 391,914.41 - -
Co., Ltd.
Heyuan Yitun

Agricultural - 83,645.70 - 83,645.70 - -
Development Co., Ltd.

Heze Haiding Feed 903,888.87 224,106.38 - 1,127,995.25 - -
Technology Co., Ltd.

Heshan Haiwei Feed 31,280.68 41,013.60 - 72,294.28 - -
Co., Ltd.

Heshan Ronghai Feed 667,441.83 146,005.91 - 813,447.74 - -
Co., Ltd.
Hengnan Yitun

EcologicalAgriculture 83,183.51 86,710.13 - 169,893.64 - -
Co., Ltd.
Hengshan Yitun

EcologicalAgriculture 1,038,661.99 532,468.35 - 1,571,130.34 - -
Co., Ltd.
Hengyang County

JishengAgriculture and 115,147.82 13,115.35 - 128,263.17 - -
Animal Husbandry
Development Co., Ltd.
Hengyang Yitun

EcologicalAgriculture 14,442.12 - - 14,442.12 - -
Co., Ltd.

Honghu Haid Feed Co., 3,165,031.51 5,852,832.92 - 9,017,864.43 - -
Ltd.

Hubei Haid Feed Co., 32,530,044.23 3,739,684.72 - 36,269,728.95 - -
Ltd.

Hubei Haid Seed - 13,653.69 - 13,653.69 - -
Technology Co., Ltd.

Hubei Haiqi Technical 259,851.61 244,915.23 - 504,766.84 - -
Service Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Hunan Innovation 6,123,224.07 1,107,707.06 - 7,230,931.13 - -
Biotechnology Limited

Hunan Dongting Haid 6,745,021.71 16,020,865.73 - 22,765,887.44 - -
Feed Co., Ltd.

Hunan Haid Bio-Feed 20,558,709.14 1,187,476.45 - 21,746,185.59 - -
Co., Ltd.

Hunan Jinhuilong 51,306,645.49 288,080.70 - 51,594,726.19 - -
Technology Co., Ltd.

Hunan Yitun Technology - 97,307.88 - 97,307.88 - -
Co., Ltd.

Hunan Yitun Ecological 1,188,645.13 536,429.56 - 1,725,074.69 - -
Agriculture Co., Ltd.
Huayuan Yitun

EcologicalAgriculture - 174,205.53 - 174,205.53 - -
Co., Ltd.

Huaihua Haid Feed Co., 6,552,352.88 8,918,444.99 - 15,470,797.87 - -
Ltd.

Huaian Hailong Feed 6,115,110.74 45,726,920.71 - 51,842,031.45 - -
Co., Ltd.

Huilong Feed Co., Ltd. 28,436.98 40,246.10 - 68,683.08 - -

Huainan Haid Biological 306,718.79 84,755,565.06 - 85,062,283.85 - -
Feed Co., Ltd.

Huizhou Haid - 32,000,000.00 - 32,000,000.00 - -
Biotechnology Co., Ltd.
Jinan Haiding Farming

AndAnimal Husbandry 41,233.63 35,657.32 - 76,890.95 - -
Co., Ltd.

Jining Haiding Feed Co., 361,941.64 164,273.71 - 526,215.35 - -
Ltd.

Jiyuan Haihe Jinyu Feed 162,720.04 - 162,720.04 - - -
Co., Ltd.

Jiaxiang Haiying Food 66,781.43 34,083.97 - 100,865.40 - -
Co., Ltd.

Jiaxing Haid Yongwang 15,075,406.50 255,293.49 - 15,330,699.99 - -
Bio-Feed Co., Ltd.

Jiangmen Haid Feed 84,813,187.57 1,469,428.98 - 86,282,616.55 - -
Co., Ltd.

Jiangmen Rongchuan 21,174.97 86,186,960.66 - 86,208,135.63 - -
Feed Co., Ltd.
Jiangmen Ronghai

Aquaculture Technology 160,861.38 136,493.94 - 297,355.32 - -
Co., Ltd.

Jiangmen Debao Group 97,621,690.68 139,516.42 - 97,761,207.10 - -
Co., Ltd.

JiangmenA&T Xinhui 25,774,981.30 559,111.24 - 26,334,092.54 - -
Feed Co., Ltd.

Jiangsu Dachuan 24,749,076.56 111,619.99 - 24,860,696.55 - -
Biotechnology Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Jiangsu Daxin Feed Co., 158,819.94 125,558.40 - 284,378.34 - -
Ltd.
Jiangsu Haihe

Agriculture andAnimal 6,996,842.91 95,086.20 - 7,091,929.11 - -
Husbandry Co., Ltd.

Jiangsu Haiwei Feed - 25,026,442.62 - 25,026,442.62 - -
Co., Ltd.

Jiangxi Haid Feed Co., 75,942,300.51 1,133,252.36 - 77,075,552.87 - -
Ltd.

Jiangxi Jiabo Biological 35,493,388.43 549,339.39 - 36,042,727.82 - -
Engineering Co., Ltd.
Jiaozuo Jinhuilong

Biological Technology 5,028.07 - 5,028.07 - - -
Co., Ltd.

Jieyang Haid Feed Co., 3,539,407.20 1,720,034.61 - 5,259,441.81 - -
Ltd.

Jiesou Haid Feed Co., 1,442,825.70 14,550,812.54 - 15,993,638.24 - -
Ltd.
Jingzhou Bairong

Aquatic Farming Co., 208,446.03 193,998.94 - 402,444.97 - -
Ltd.

Jingzhou Haid Feed Co., 104,706,916.19 2,249,073.99 - 106,955,990.18 - -
Ltd.
Jingzhou Haihe

Biological Technology 422,429.93 40,429,467.18 - 40,851,897.11 - -
Co., Ltd.
Jingtai Haijingzhou

Fishery Technology Co., 180,100.87 - 12,637.70 167,463.17 - -
Ltd.

Junan Haiding Feed 149,488.86 113,899.13 - 263,387.99 - -
Co., Ltd.

Kaifeng Haid Feed Co., 15,086,216.90 16,316,803.45 - 31,403,020.35 - -
Ltd.
Laiyang Haihe

Agriculture andAnimal 75,831.95 56,679.19 - 132,511.14 - -
Husbandry Technology
Co., Ltd.

Laizhou ZhizhuAnimal 83,122.40 187,338.31 - 270,460.71 - -
Husbandry Co., Ltd.
Lanling Haiding

HekangyuanAgriculture 13,856.11 86,592.93 - 100,449.04 - -
andAnimal Husbandry
Co., Ltd.

Lanzhou Haid Feed Co., 25,785.02 - - 25,785.02 - -
Ltd.

Liyang Jiu He Feed Co., 65,599,374.44 869,959.89 - 66,469,334.33 - -
Ltd.

Lianyungang Haihe 461,569.40 122,405.29 - 583,974.69 - -
Feed Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Liaoning Haid - 5,268,462.93 - 5,268,462.93 - -
Biotechnology Co., Ltd.

Liaocheng Daxin Feed 161,142.88 65,324.98 - 226,467.86 - -
Co., Ltd.

Liaocheng Haiding Feed 452,564.16 114,783.51 - 567,347.67 - -
Co., Ltd.

Linxi Haiying Food Co., 98,107.59 20,308.54 - 118,416.13 - -
Ltd.

Linyi Dinghao Breeding 47,394.98 40,985.44 - 88,380.42 - -
Co., Ltd.

Linyi Dingxin Farming 109,008.45 94,266.50 - 203,274.95 - -
Co., Ltd.

Linyi Haiding Lusheng 37,915.99 32,638.64 - 70,554.63 - -
Feed Co., Ltd.

Linyi Haiding Feed 211,429.88 184,810.82 - 396,240.70 - -
Technology Co., Ltd.
Linyi HaiheAgriculture

andAnimal Husbandry 26,369.23 40,363.98 - 66,733.21 - -
Technology Co., Ltd.
Linyi Hedong Haiding

Agriculture andAnimal 190,024.09 114,346.17 - 304,370.26 - -
Husbandry Development
Co., Ltd.

Linyi Yihe Feed Co., 391,532.21 299,489.88 - 691,022.09 - -
Ltd.
Linyi Zhizhuxia

Breeding Technology 29,559.67 43,980.64 - 73,540.31 - -
Service Co., Ltd.

Linyou Yitun Ecological 8,526.83 97,304.90 - 105,831.73 - -
Agriculture Co., Ltd.

Liupanshui Haid - 5,000,000.00 - 5,000,000.00 - -
Biotechnology Co., Ltd.
Longan CountyYitun

EcologicalAgriculture 56,873.97 72,409.34 - 129,283.31 - -
Co., Ltd.
Luoding Yitun

EcologicalAgriculture 208,731.85 116,823.08 - 325,554.93 - -
Co., Ltd.
Maoming Haid

Biological Technology 472,185.36 61,000,028.67 - 61,472,214.03 - -
Co., Ltd.

Maoming Haihang Feed 218,490.82 295,936.84 - 514,427.66 - -
Co., Ltd.

Maoming Hailong Feed 94,898,330.81 379,295.88 - 95,277,626.69 - -
Co., Ltd.

Maoming Haiwei Feed 7,570,533.82 345,773.33 - 7,916,307.15 - -
Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Maoming Debao

Agriculture andAnimal - 66,597.63 - 66,597.63 - -
Husbandry Co., Ltd.

Meizhou Haid 63,175,878.71 296,047.84 - 63,471,926.55 - -
Biotechnology Co., Ltd.

Meizhou Yitun Pig - 53,613.56 - 53,613.56 - -
Breeding Co., Ltd.

Mianyang Hailong Feed 477,981.62 3,630,962.23 - 4,108,943.85 - -
Co., Ltd.

Mianyang Zhonggui 42,655.48 36,886.89 - 79,542.37 - -
Feed Co., Ltd.

Nanchang Haid 6,210,286.19 804,808.15 - 7,015,094.34 - -
Biotechnology Co., Ltd.

Naning Dachuan 18,213.32 9,074,635.16 - 9,092,848.48 - -
Biotechnology Co., Ltd.

Nanning Haid 1,582,980.34 121,421,523.51 - 123,004,503.85 - -
Biotechnology Co., Ltd.

Nanning Haililai 7,202,261.30 206,773.76 - 7,409,035.06 - -
Biotechnology Co., Ltd.

Nantong Haid 104,774,617.43 2,701,393.56 - 107,476,010.99 - -
Biotechnology Co., Ltd.
Nantong Haijingzhou

Biological Technology 84,135.69 101,983.11 - 186,118.80 - -
Co., Ltd.

Inner Mongolia Haid 10,134,601.71 422,933.66 - 10,557,535.37 - -
Feed Co., Ltd.

Inner Mongolia Haishan - 1,800,000.00 - 1,800,000.00 - -
Feed Co., Ltd.

Ningguo Haid 1,950,000.00 13,755,047.09 - 15,705,047.09 - -
Biotechnology Co., Ltd.
Pingguo Yitun

EcologicalAgriculture 168,863.99 66,806.26 - 235,670.25 - -
Co., Ltd.

Pingjiang Bairuilai - 1,084,536.16 - 1,084,536.16 - -
Biotechnology Co., Ltd.

Pingnanhai Da Feed Co., 5,604.11 7,186.15 - 12,790.26 - -
Ltd.
Pingnan Yitun

EcologicalAgriculture 841,180.75 510,276.67 - 1,351,457.42 - -
Co., Ltd.

Qianjiang Hailong - 176,996.74 - 176,996.74 - -
Biotechnology Co., Ltd.

Qinzhou Hailong Feed 100,003.40 5,258,530.31 - 5,358,533.71 - -
Co., Ltd.

Qinzhou Haiwei Feed 15,640.34 35,064,307.12 - 35,079,947.46 - -
Co., Ltd.
Qinzhou Yitun

EcologicalAgriculture 91,927.75 56,646.66 - 148,574.41 - -
Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Qingdao Haihe

Agriculture andAnimal 13,038.94 27,800.98 - 40,839.92 - -
Husbandry Technology
Co., Ltd.

Qingdao Huaxin Feed 88,580.99 30,870.67 - 119,451.66 - -
Co., Ltd.
Qingdao Zhizhu Xia Pig

Raising Service Co., 15,177.77 - 15,177.77 - - -
Ltd.

Qingzhou Haidinghe 203,784.19 172,804.10 - 376,588.29 - -
Xinsheng Feed Co., Ltd.

Qingyuan Baishengyuan - 70,896.57 - 70,896.57 - -
Aquatic Seed Co., Ltd.

Qingyuan Haibei 8,509,385.21 13,562,958.96 - 22,072,344.17 - -
Biotechnology Co., Ltd.

Qingyuan Haid 12,412,779.21 1,769,089.16 - 14,181,868.37 - -
Biotechnology Co., Ltd.
Qingyuan Hailong

Biological Technology 6,275,037.08 126,062,537.83 - 132,337,574.91 - -
Co., Ltd.
Qingyuan Hainong

Agriculture andAnimal 194,364.36 - 194,364.36 - - -
Husbandry Co., Ltd.
Qingyuan Ronghai

Breeding Technology 1,421,236.47 69,016,080.02 - 70,437,316.49 - -
Co., Ltd.

Qujing Zhihai Feed Co., 130,662.98 79,308.65 - 209,971.63 - -
Ltd.

Rongcheng Rongchuan 185,527.83 138,733.61 - 324,261.44 - -
Biotechnology Co., Ltd.
Rongcheng Yandun

Horn Fish Meal Co., 7,583.19 6,557.68 - 14,140.87 - -
Ltd.
Rongjiang CountyYitun

EcologicalAgriculture 53,711.41 48,443.19 - 102,154.60 - -
Co., Ltd.

Ruyuan CountyYitun - 26,645.05 - 26,645.05 - -
Pig Breeding Co., Ltd.

Sanming Haid Feed Co., 5,987,766.84 30,275,633.04 - 36,263,399.88 - -
Ltd.
Sanya Fengmu

Agricultural 14,218.50 12,295.63 - 26,514.13 - -
Development Co., Ltd.
Shandong Bairong

Fisheries Fine Seed Co., 473,363.75 236,387.25 - 709,751.00 - -
Ltd.

Shandong Daxin Group 286,866,608.62 364,952.47 - 287,231,561.09 - -
Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Shandong Daxin

Agriculture andAnimal 7,034.64 88,152.91 - 95,187.55 - -
Husbandry Technology
Co., Ltd.

Shandong Fengying 193,845.43 238,616.38 - 432,461.81 - -
Food Co., Ltd.
Shandong Haiding

Agriculture andAnimal 8,041,692.75 2,181,322.47 - 10,223,015.22 - -
Husbandry Co., Ltd.
Shaanxi Haid

Agriculture andAnimal 13,744,763.82 - 56,656.28 13,688,107.54 - -
Husbandry Co., Ltd.
Shanwei Haijingzhou

Marine Biological 416,708.06 244,747.56 - 661,455.62 - -
Technology Co., Ltd.
Shanwei Haizenong

Marine Biotechnology - 37,222.03 - 37,222.03 - -
Co., Ltd.

Shanghai Gaohaid 315,445.13 25,275,362.08 - 25,590,807.21 - -
Biotechnology Co., Ltd.

Shaoguan Haid 5,637,911.60 10,417,325.04 - 16,055,236.64 - -
Biotechnology Co., Ltd.
Shaoguan Zhenjiang

Yitun Ecological 850,375.01 441,484.62 - 1,291,859.63 - -
Agriculture Co., Ltd.

Shaoyang Haid Feed 64,377.58 5,241,483.81 - 5,305,861.39 - -
Co., Ltd.

Shenzhen Longreat 1,478,070.08 59,019.05 - 1,537,089.13 - -
Trading Co., Ltd.

Shenyang Haid Feed 3,110,605.45 227,102.67 - 3,337,708.12 - -
Co., Ltd.

Shijiazhuang Huilong 44,287.37 40,509.91 - 84,797.28 - -
Feed Co., Ltd.

Shijiazhuang Weike 50,459,377.75 728,195.51 - 51,187,573.26 - -
Biotechnology Co., Ltd.
Sichuan Haile

Agriculture andAnimal 16,502,976.53 - - 16,502,976.53 - -
Husbandry Co., Ltd.
Sichuan Hailinger

Biopharmaceutical Co., 1,375,876.64 726,559.62 - 2,102,436.26 - -
Ltd.

Sichuan Hailong 90,998.35 118,947.34 - 209,945.69 - -
Biotechnology Co., Ltd.

Sichuan Haimufeng - 57,646.42 - 57,646.42 - -
Agriculture Co., Ltd.

Sichuan Rongchuan 555,626.79 90,682,223.10 - 91,237,849.89 - -
Feed Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Sihui Haifeng

EcologicalAgriculture 250,849.77 231,216.97 - 482,066.74 - -
Co., Ltd.

Sihong Haiding Feed 83,415.15 72,134.37 - 155,549.52 - -
Co., Ltd.

Suqian Haid Feed Co., 21,699,010.15 933,388.57 - 22,632,398.72 - -
Ltd.

Suixian Yuliang Haiding 219,849.47 28,741.70 - 248,591.17 - -
Feed Co., Ltd.

Taishan Debao Feed Co., 16,114.29 106,074.99 - 122,189.28 - -
Ltd.

Taizhou Haid Bio-Feed 22,883,777.65 1,812,041.79 - 24,695,819.44 - -
Co., Ltd.

Tengzhou Fengcheng 194,819.19 118,038.06 - 312,857.25 - -
Feed Co., Ltd.

Tianjin Haid Feed Co., 151,087,931.39 1,251,261.46 - 152,339,192.85 - -
Ltd.

Tianjin Rongchuan Feed 163,903,116.18 1,056,653.99 - 164,959,770.17 - -
Co., Ltd.

Tianmen Haid Feed Co., 8,797,741.80 1,410,833.18 - 10,208,574.98 - -
Ltd.

Weifang Binhai Haiding 8,413.14 - 1,713.86 6,699.28 - -
Feed Co., Ltd.

Weifang Daxin Feed 99,529.44 75,941.33 - 175,470.77 - -
Co., Ltd.
Weifang Xuheng

Agricultural Science 91,685.47 118,666.55 - 210,352.02 - -
And Technology Co.,
Ltd.

Weinan Haid Feed Co., 56,618.34 172,484.98 - 229,103.32 - -
Ltd.

Wengyuan CountyYitun - 5,726.47 - 5,726.47 - -
Pig Breeding Co., Ltd.

Wuzhou Haid 324,573.88 25,352,718.56 - 25,677,292.44 - -
Biotechnology Co., Ltd.
Wugang Yitun

EcologicalAgriculture - 3,806.75 - 3,806.75 - -
Co., Ltd.

WuhanAquaera 5,508,214.41 119,959.65 - 5,628,174.06 - -
Biotechnology Co., Ltd.

Wuwei Haid Feed Co., - 13,418.44 - 13,418.44 - -
Ltd.

Wuwei Haimu 10,142,184.91 298,837.72 - 10,441,022.63 - -
Biotechnology Co., Ltd.
Xiyu Haisheng

(Guangzhou) Supply - 72,922.19 - 72,922.19 - -
Chain Co., Ltd.

Xishui Haid Feed Co., 4,691,909.76 872,386.56 - 5,564,296.32 - -
Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Xiangtan Haid Feed Co., 11,339,379.43 10,724,706.06 - 22,064,085.49 - -
Ltd.

Xinjiang Xiyu Haihua 68,248.75 - 13,903.15 54,345.60 - -
Products Co., Ltd.

Xinxiang Haiding Feed 85,310.96 27,643.92 - 112,954.88 - -
Co., Ltd.

Xinxiang Hairuida Feed 47,493.06 69,573.16 - 117,066.22 - -
Co., Ltd.
Xinxing County Haifeng

Agriculture andAnimal 218,490.84 - 218,490.84 - - -
Husbandry Co., Ltd.

Xingtai Haid - 10,078,311.01 - 10,078,311.01 - -
Biotechnology Co., Ltd.

Xuzhou Haid Hexin 245,285.88 126,645.00 - 371,930.88 - -
Feed Co., Ltd.

Xuzhou Haihe Feed Co., 181,258.18 85,659.56 - 266,917.74 - -
Ltd.

Xuzhou Hairuida Feed - 11,182.03 - 11,182.03 - -
Co., Ltd.
Xuzhou Zhongyi

HaidingAgriculture and - 7,487.10 - 7,487.10 - -
Animal Husbandry Co.,
Ltd.

Xuchang Haihe Feed 39,933.03 - 18,957.99 20,975.04 - -
Co., Ltd.

Xuancheng Haid 5,565,637.42 179,667.76 - 5,745,305.18 - -
Biotechnology Co., Ltd.

Yantai Daxin Feed Co., 172,043.75 170,666.71 - 342,710.46 - -
Ltd.

YantaiYitun Ecological 313,098.13 98,819.81 - 411,917.94 - -
Agriculture Co., Ltd.
Yantai Zhizhuren

Animal Husbandry Co., 94,764.36 79,297.97 - 174,062.33 - -
Ltd.

Yantai Zhizhuren Feed - 27,268.18 - 27,268.18 - -
Co., Ltd.

Yancheng Haid Bio- 31,296,559.13 636,088.71 - 31,932,647.84 - -
Feed Co., Ltd.
Yancheng Haiwei

Biological Technology - 40,265,862.14 - 40,265,862.14 - -
Co., Ltd.

Yancheng Rongchuan - 10,495,071.14 - 10,495,071.14 - -
Biotechnology Co., Ltd.
Yancheng Runchuan

Agricultural Science 93,795.17 80,741.32 - 174,536.49 - -
And Technology Co.,
Ltd.

Yangjiang Haid Feed 7,771,737.33 2,271,346.95 - 10,043,084.28 - -
Co., Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Yangjiang Yangdong

FengwoAgriculture and 287,943.47 86,616.86 - 374,560.33 - -
Animal Husbandry Co.,
Ltd.
Yangxi Fengwo

EcologicalAgriculture 1,138,692.09 476,420.31 - 1,615,112.40 - -
Co., Ltd.
Yangxin Bairong

Aquatic Farming Co., 650,610.25 216,311.78 - 866,922.03 - -
Ltd.

Yangling Haid Feed Co., 123,975.79 142,504.56 - 266,480.35 - -
Ltd.

Yinan Haiding Feed Co., 426,507.17 142,692.71 - 569,199.88 - -
Ltd.

Yiyuan Haiying Food 114,695.84 27,848.44 - 142,544.28 - -
Co., Ltd.

Yibin Zhihai Feed Co., 366,109.07 161,357.56 - 527,466.63 - -
Ltd.
Yichang Zhihai

Agriculture andAnimal 39,855.84 27,329.14 - 67,184.98 - -
Husbandry Co., Ltd.

Yichang Haid Feed Co., 332,832.00 320,760.43 - 653,592.43 - -
Ltd.

Yicheng Haid Biological 224,335.93 45,283,393.15 - 45,507,729.08 - -
Technology Co., Ltd.
Yicheng Yitun

EcologicalAgriculture 436,883.99 302,897.72 - 739,781.71 - -
Co., Ltd.

Yiyang Haid Feed Co., 52,281,415.52 1,034,537.97 - 53,315,953.49 - -
Ltd.

Yingde Yitun Ecological 229,692.81 102,082.08 - 331,774.89 - -
Agriculture Co., Ltd.

Yingde Yitun Pig 59,627.57 - 11,585.96 48,041.61 - -
Breeding Co., Ltd.

Yingkou Dachuan Feed 430,095.83 12,468,626.06 - 12,898,721.89 - -
Technology Co., Ltd.
Yingkou Fengmu

Agricultural - 52,623.60 - 52,623.60 - -
Development Co., Ltd.
Yongji Haijingzhou

Fishery ScienceAnd 73,462.21 142,372.17 - 215,834.38 - -
Technology Co., Ltd.
Youxian Yitun

EcologicalAgriculture - 16,694.91 - 16,694.91 - -
Co., Ltd.

Yulin Haid Feed Co., 249,800.85 45,274,610.66 - 45,524,411.51 - -
Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Yueyang Yitun

Agriculture andAnimal 454,056.41 230,787.80 - 684,844.21 - -
Husbandry Co., Ltd.

Yunnan Haid 8,374,071.32 1,454,106.63 - 9,828,177.95 - -
Biotechnology Co., Ltd.

Yunnan Hairui 22,407,887.31 80,038.68 - 22,487,925.99 - -
Biotechnology Co., Ltd.

Yunnan Zhonggui Feed 152,611.82 99,579.57 - 252,191.39 - -
Co., Ltd.
Yuncheng Haishengyuan

Fishery Technology Co., - 42,948.49 - 42,948.49 - -
Ltd.

Yuncheng Haiding 319,052.74 182,435.55 - 501,488.29 - -
Hongda Feed Co., Ltd.

Zhanjiang Haid Feed 22,953,569.55 3,289,300.66 - 26,242,870.21 - -
Co., Ltd.
Zhanjiang Haijingzhou

Marine Biotechnology 135,549.62 246,233.44 - 381,783.06 - -
Co., Ltd.
Zhanjiang Hisenor

Marine Biotechnology 1,221,225.25 301,717.79 - 1,522,943.04 - -
Co., Ltd.

Zhanjiang Rongda Feed 639,229.72 5,579,482.74 - 6,218,712.46 - -
Co., Ltd.

Zhangzhou Haid Feed 18,377,285.36 393,283.97 - 18,770,569.33 - -
Co., Ltd.
Zhangzhou Haijingzhou

Marine Biotechnology 381,397.33 395,000.24 - 776,397.57 - -
Co., Ltd.
Zhangzhou Longwen

Hairong Farming 62,874.29 - 62,874.29 - - -
Service Specialized
Cooperative

Zhangzhou Haiheng 389,340.04 313,417.25 - 702,757.29 - -
Feed Co., Ltd.
Zhaoqing Baishengyuan

Aquatic Products Co., 95,736.65 56,554.11 - 152,290.76 - -
Ltd.
Zhaoqing Bairong

Aquatic Farming Co., 56,521.50 - 4,414.94 52,106.56 - -
Ltd.
Zhaoqing Gaoyao Haid

Biological Technology 1,249,437.94 81,306,405.45 - 82,555,843.39 - -
Co., Ltd.

Zhaoqing Haid Feed 5,880,768.57 20,494.01 - 5,901,262.58 - -
Co., Ltd.

Zhejiang Haid Feed Co., 100,718,393.22 1,153,964.83 - 101,872,358.05 - -
Ltd.


Allowance Closing
Decrease in for balance of
Investee 2021.12.31 Increase in the the current 2022.12.31 impairment provision
current period period during the for
current impairment
Period

Zhongshan City

Seawater Production 967,461.72 700,837.56 - 1,668,299.28 - -
AndAquaculture Co.,
Ltd.

Zhongshan Yugezi Food 175,835.33 163,352.23 - 339,187.56 - -
Co., Ltd.

Chongqing Haid Feed 6,222,142.22 20,735,243.44 - 26,957,385.66 - -
Co., Ltd.

Chongqing Haizhi Feed 80,571.46 54,423.38 - 134,994.84 - -
Co., Ltd.
Chongqing Kaizhou

Haid Biotechnology Co., 491,331.11 25,116,104.77 - 25,607,435.88 - -
Ltd.

Zhuhai Hailong 17,865,317.86 3,537,344.88 - 21,402,662.74 - -
Biotechnology Co., Ltd.

Zhuhai Rongchuan Feed 41,168,607.52 3,369,171.02 - 44,537,778.54 - -
Co., Ltd.
Zhuhai Ronghai

Breeding Technology 23,693.23 164,150.69 - 187,843.92 - -
Co., Ltd.
Zhuhai Chenzhe Private

Equity Fund - 10,000,000.00 - 10,000,000.00 - -
Management Co., Ltd.

Zixing Yitun Ecological 151,945.83 136,423.90 - 288,369.73 - -
Agriculture Co., Ltd.
Zigong Hailong

Biological Technology 10,093,842.74 659,542.79 - 10,753,385.53 - -
Co., Ltd.

Zouping Haiying Food 85,830.37 71,135.95 - 156,966.32 - -
Co., Ltd.

Total 6,302,346,221.96 3,212,323,261.66 21,777,635.18 9,492,891,848.44 - -


(2) Investment inAssociate and joint ventures

Movements during the year

Investment Closing
gains or Adjustment in Change Cash Provision Balance of
Investee 2021.12.31 Increase in Decrease in losses Other s in Dividends or for Other 2022.12.31 Provision
the current the current Recognized Comprehensiv Other Profits Impairmen s for
period period under the e income Equity declared t Impairmen
Equity t
Method

①
Associates

Guizhou - -

Fuhai 23,040,528.8 - 9,000,000.0 1,555,617.5 - - 15,596,146.3 - - - -
Chemicals 1 0 3 4

Co., Ltd.
Bangpu

Seed 5,797,397.28 5,000,000.0 - -279,186.63 - - - - - 10,518,210.6 -
Technolog 0 5

y Co., Ltd

28,837,926.0 5,000,000.0 - 1,276,430.9 - 10,518,210.6

Total 9 0 9,000,000.0 0 - - 15,596,146.3 - - 5 -
0 4


3. Operating income and operating cost

Item Year ended 31/12/2022 Year ended 31/12/2021

Income Cost Income Cost

Principal activities 2,686,425,953.01 1,290,424,971.73 2,024,063,898.11 888,097,788.91

Other operating activities 66,925,970.93 3,775,442.17 15,905,500.43 4,735,140.88

Total 2,753,351,923.94 1,294,200,413.90 2,039,969,398.54 892,832,929.79

4. Investment income

Item Year ended Year ended
31/12/2022 31/12/2021

Income from long-term equity investments by using the 973,932,387.53 797,913,420.45
cost method

Income from long-term equity investments by using the 1,276,430.90 219,125.44
equity method

Investment income from disposal of long-term equity -1,469,137.47 11,886,867.35
investments

Investmentincome fromother non-currentfinancialassets 5,713,078.32 786,559.83

Investment income from held-for-trading financial assets 1,256,326.21 2,385,359.37

Investment income from disposal of held-for-trading 3,390,304.05 20,365,417.78
financial assets

Investment income from disposal of non-current financial 15,649,338.53 -
assets

Total 999,748,728.07 833,556,750.22

XVI Supplementary Information

1. Details of non-recurring gain or loss during the current period

Item Year ended Note
31/12/2022

Gain or loss on disposal of non-current assets -45,840,354.94

Government grants charged to current profit or loss (excluding

government grant given in the Company’s ordinary course of 125,600,697.83

business at fixed quotas or amounts as per government’s

uniform standards)

Investment costs for acquisition of subsidiaries, associates and

joint venture less than gains from the fair value of identifiable 812,610.97

net assets of the investees

Except for the effective hedging activities related to the

Company’s ordinary activities, profit or loss arising from

changes in fair value of financial assets held for trading,

derivative financial assets, financial liabilities held for trading,

derivative financial liabilities, other non-current financial 39,455,335.15

assets, and investment income from disposal of financial assets

held for trading, derivative financial assets, financial liabilities

held for trading, derivative financial liabilities, other non-

current financial assets.

Reversal of provision for bad and doubtful debt where accounts 6,167,665.26

receivable are individually tested for impairment

Profits or losses from external entrusted loans 530,942.74


Item Year ended Note
31/12/2022

Other non-operating incomes and expenses, except for the -34,643,762.69

above

Other gain or loss satisfied the definition of non-recurring gain 5,936,636.84

or loss

Total non-recurring gain or loss 98,019,771.16

Less: impact of Income tax 17,625,340.80

Net amount of non-recurring gain or loss 80,394,430.36

Less: impact of non-controlling interests (net of tax) 6,374,917.33

Non-recurring gain or loss attributable to the ordinary 74,019,513.03

shareholders

2. Return on Equity (ROE) and Earnings per Share (EPS)

Weighted EPS

Net profit of Reporting Period average Basic Diluted
ROE (%) EPS EPS

Net profit attributable to ordinary shareholders of the Company 18.46 1.79 1.79

Net profit attributable to ordinary shareholders of the Company 17.99 1.75 1.74
after deducting the non-recurring gain or loss

Guangdong Haid Group Co., Limited
April 21, 2023