内容: （Log：提取版本日期2022年6月1日,每季发现问题，整体重做新版本,请勿下载早期淘汰版:hellohellohello.taobao.com）

内容: Title: HAINAN JINGLIANG HOLDINGS CO., LTD.

内容: Author: March, 2022

内容: Subject: ANNUAL REPORT 2021

内容: Creator: Microsoft? Word 2019

内容: Producer: Microsoft? Word 2019

内容: HAINAN JINGLIANG HOLDINGS CO., LTD. ANNUAL REPORT 2021

内容: March, 2022

内容: Part I Important Notes

内容: This Summary is based on the full Annual Report of Hainan Jingliang Holdings Co., Ltd. (together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full understanding of the Company’s operating results, financial position and future development plans, investors should carefully read the aforesaid full text, which has been disclosed together with this Summary on the media designated by the China Securities Regulatory Commission (the “CSRC”). All the Company’s Directors have attended the Board meeting for the review of this Report and its summary. Independent auditor’s modified opinion: □ Applicable √ Not applicable Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period: □ Applicable √ Not applicable The Company has no final dividend plan, either in the form of cash or stock. Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period: □ Applicable √ Not applicable This Summary has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.

内容: Part II Key Corporate Information

内容: 1. Stock Profile

内容: Stock name Stock exchange for stock listing Contact information Name Address Fax Tel. Email address Guan Ying JLKG, JL-B Shenzhen Stock Exchange Board Secretary Securities Representative Gao Deqiu Stock code 000505, 200505

内容: 15/F, Jing Liang Building, NO. 16 East Third 15/F, Jing Liang Building, NO. 16 East Third Ring Middle Road, Chaoyang District, Ring Middle Road, Chaoyang District, Beijing Beijing 010-51672010 010-51672130 1124387865@qq.com 010-51672010 010-51672029 gaodeqiu_jl@163.com

内容: 2. Principal Activities or Products in the Reporting Period The Company is principally engaged in oils and oilseeds processing and trading, as well as food processing. With

内容: Hainan Jingliang Holdings Co., Ltd.

内容: Annual Report 2021

内容: regard to oils processing and trading, the Company refines, bottles, markets, imports and exports raw oils upon initial pressing. As for oilseeds, the Company presses, refines, bottles, markets, imports and exports oilseeds such as sesame, soybean, corn germ, sunflower seeds and peanuts. The Company runs its oils and oilseeds processing and trading business primarily in Beijing City, Tianjin City and Hebei Province under the brands of “Gu Chuan”, “Lv Bao”, “Gu Bi”, “Huo Niao”, etc., with the main products being soybean oil, rapeseed oil, sunflower seed oil and sesame oil and paste, among others. As for its food processing business, it primarily develops, produces and markets snack food and bread under the brands of “Little Prince”, “MS Dong”, “Jianqiang De Tudou” and “Gu Chuan”, among others, with the main products being potato chips, cakes and pastries and bread. The snack food business covers all provinces and municipalities in China, while the bread business focuses on the Beijing-Tianjin-Hebei region. In this regard, the Company is one of the major suppliers for KFC in North China. According to the Industry Categorization Results of Listed Companies, the Company falls into the major industry category of manufacturing—agri-food processing industry (code: C13). Specifically, the Company operates in the vegetable oil processing segment, with its food processing business accounting for a large proportion in gross profit. With respect to the vegetable oil processing industry, industrial integration has accelerated and differentiation is increasingly evident, with minority oils such as sunflower seed oil, tea oil, corn oil and rice bran oil seeing fast growth. In terms of the food processing industry, consumer needs have become increasingly diverse, resulting in better and richer product offerings. Nonetheless, there are only a handful of major brands in the industry, indicating great potential for industrial integration. 3. Key Financial Information (1) Key Financial Information of the Past Three Years Indicate by tick mark whether there is any retrospectively restated datum in the table below. □ Yes √ No

内容: Unit: RMB 31 December 2021 Total assets Equity attributable to the listed company’s shareholders 6,046,600,058.90 2,915,802,291.05 2021 Operating revenue Net profit attributable to the listed company’s shareholders Net profit attributable to the listed company’s shareholders before exceptional items Net cash generated from/used in operating activities Basic earnings per share 11,763,093,835.56 204,459,771.08 31 December 2020 5,695,504,493.73 2,710,571,543.53 2020 8,741,749,912.11 184,846,956.70 Change of 31 December 2021 over 31 December 2019 31 December 2020 (%) 6.16% 7.57% 2021-over-2020 change (%) 34.56% 10.61% 5,231,266,600.19 2,406,039,283.87 2019 7,440,286,465.54 133,341,925.75

内容: Weighted average return on equity (%)

内容: (2) Key Financial Information by Quarter

内容: Unit: RMB Q1 Operating revenue Net profit attributable to the listed company’s shareholders Net profit attributable to the listed company’s shareholders before exceptional items Net cash generated from/used in operating activities 2,338,783,061.35 36,585,077.36 Q2 2,989,463,774.48 51,743,120.55 Q3 2,987,496,084.26 39,778,852.22 Q4 3,447,350,915.47 76,352,720.95

内容: Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what have been disclosed in the Company’s quarterly or interim reports. □ Yes √ No 4. Share Capital and Shareholder Information at the Period-End (1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders

内容: Unit: share Number of ordinary shareholders at the period-end Number of ordinary shareholders at the 59,249 month-end prior to the disclosure of this Report Number of preferred shareholders 53,755 with resumed voting rights at the period-end Number of preferred shareholders with resumed voting 0 rights at the month-end prior to the disclosure of this Report Shares in pledge, marked or frozen Status 0 Shares

内容: Top 10 shareholders Name of shareholder BEIJING GRAIN GROUP CO., LTD. BEIJING STATE-OWNED CAPITAL OPERATION AND MANAGEMENT COMPANY LIMITED WANG YUECHENG Nature of shareholder State-owned legal person State-owned legal person Domestic natural person Foreign natural person Shareholdi Total shares ng held at the percentage period-end 39.68% 288,439,561 Restricted shares held

内容: LI SHERYN ZHAN MING

内容: GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.—GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND (L.P.) MEI JIANYING

内容: Other

内容: Domestic natural person Domestic natural person Domestic natural person Foreign legal person

内容: ZHANG XIAOXIA

内容: WANG XIAOXING ORIENT SECURITIES （HONG KONG） LIMITED CITIC SECURITIES COMPANY LIMITED－TIANHONG CHINA SECURITIES FOOD AND BEVERAGES TRADING OPEN-ENDED INDEX SECURITIES INVESTMENT FUND

内容: ① Beijing State-Owned Capital Operation and Management Center owns an indirect 100% share of Beijing Grain Group Co., Ltd., and Beijing Grain Group Related or acting-in-concert parties among the Co., Ltd. is the controlling shareholder of the Company (a 39.68% holding). ② shareholders above Wang Yuecheng is a Deputy General Manager of the Company. Apart from that, the Company does not know whether there are any other related parties or acting-in-concert parties among the top 10 shareholders. Shareholders involved trading (if any) in securities margin Shareholder Wang Xiaoxing holds 1,679,200 shares in the Company through his account of collateral securities for margin trading in Soochow Securities Co., Ltd.

内容: (2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them □ Applicable √ Not applicable No preferred shareholders in the Reporting Period.

内容: (3) Ownership and Control Relations between the Actual Controller and the Company The State-Owned Assets Supervision and Administration Commission of the People’s Government of Beijing Municipality 100% Beijing State-Owned Capital Operation and Management Company Limited 100% Beijing Capital Agribusiness Group Co., Ltd. 100% Beijing Grain Group Co., Ltd. 39.68% Hainan Jingliang Holdings Co., Ltd. 6.67%

内容: 5. Outstanding Bonds at the Date when this Report Was Authorized for Issue □ Applicable √ Not applicable

内容: Part III Significant Events

内容: 2021 marks the commencement of China’s “14th Five-Year Plan”, the 100th anniversary of the founding of the Communist Party of China (the “CPC”), as well as the first year for the Company’s “Three-year Actions for State-owned Enterprise Reform”, which is aimed to drive leapfrog growth. In the year, the Company closely followed the general principle of seeking progress while keeping performance stable, adhered to the right path of innovation, and managed to overcome multiple difficulties. With strong CPC leadership, the Company saw a good start for the 14th Five-Year Plan period, with effective anti-pandemic actions, as well as a stabilizing and improving development momentum. For the year under review, the Company recorded operating revenue of RMB11.763 billion, up 34.56% year on year; a gross profit of RMB315 million, up 10.56% year on year; a net profit attributable to the listed company’s shareholders of RMB204 million, up 10.61% year on year; and earnings per share of RMB0.28, up 7.69% year on year. As such, the objectives for the year were successfully accomplished. No significant changes occurred to the Company’s operations in the Reporting Period.

内容: Part VI 2021 Financial Statements

内容: Consolidated Balance Sheet

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Items Current Assets: Monetary capital △Settlement reserves △Loans to banks and other financial institutions Transactional financial assets Derivative financial assets Notes receivable Accounts receivable Receivables financing Prepayment △Premium receivable △Reinsurance accounts receivable △Reinsurance reserves receivable Other receivables Including: Interest receivable Dividends receivable △Buy-back financial assets Inventory Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets Non-current assets: △Loans and advances Debt investment Other debt investments Long-term receivables Long-term equity investment Other equity instruments investment Other non-current financial assets Investment property Fixed assets Construction in process Productive biological assets Oil-and-gas assets Right-of-use assets Intangible assets Development expenditure Goodwill Long-term deferred expenses Deferred income tax assets Other non-current assets Total non-current assets 31 December 2021 507,144,668.45 Monetary Unit: RMB Yuan 31 December 2020 Notes 335,466,169.61 VI.1

内容: VI.2 VI.3 VI.4 VI.5

内容: VI.8 VI.9

内容: Total assets

内容: Consolidated Balance Sheet (Continued)

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Items Current liabilities: Short-term borrowings △Borrowings from central bank △Loans from banks and other financial institutions Transactional financial liabilities Derivative financial liabilities Notes payable Accounts payable Account collected in advance Contract liabilities △Financial assets sold under repurchase agreements △Deposits from customers and interbank deposits △Funds from securities trading brokerage business △Funds from securities underwriting business Employee payroll payable Taxes payable Other payables Including: Interest payable Dividends payable △Employee payroll payable △Payables for reinsurance Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: △Insurance contract reserves Long-term borrowings Bonds payable Including: Preferred stock Perpetual capital bonds Lease liabilities Long-term payables Long-term payable to employees Estimated liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Owners' equity (or Shareholders' equity): Capital stock Other equity instruments Including: Preferred stock Perpetual capital bonds Capital reserves Less: treasury stock Other comprehensive income Special reserves Surplus reserves △General risk reserve Undistributed profit Total equity attributable to the parent company Minority equity Total owners' equity (or shareholders' equity)

内容: Total liabilities and owners' equity (or shareholders' equity)

内容: Monetary Unit: RMB Yuan 31 December 2020 Notes 1,497,414,079.05 VI.21

内容: Balance Sheet

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Items Current assets: Monetary capital △Settlement reserves △Loans to banks and other financial institutions Transactional financial assets Derivative financial assets Notes receivable Accounts receivable Receivables financing Prepayment △Premium receivable △Reinsurance accounts receivable △Reinsurance reserves receivable Other receivables Including: Interest receivable Dividends receivable △Financial assets purchased under reverse repurchase agreements Inventory Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets Non-current assets △Loans and advances Debt investment Other debt investments Long-term receivables Long-term equity investment Other equity instruments investment Other non-current financial assets Investment property Fixed assets Construction in process Productive biological assets Oil-and-gas assets Right-of-use assets Intangible assets Development expenditure Goodwill Long-term deferred expenses Deferred income tax assets Other non-current assets Total non-current assets 2,626,437,846.24 20,000,000.00 5,880,839.21 6,009,399.58 85,534.58 2,658,413,619.61 2,626,437,846.24 20,000,000.00 6,222,001.73 2,809,083.51 209,185.10 2,655,678,116.58 XVI.3 December 31 2021 1,533,187.04 600.00 180,000,000.00 2,335,459.82 183,869,246.86 Monetary Unit: RMB Yuan December 31 2020 Note 1,523,322.79 11,784.00 423,679.12 103,341.26 3,775,954.85 2,445,772.47 8,283,854.49 XVI.2 XVI.1

内容: Balance Sheet (Continued)

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Items Current liabilities: Short-term borrowings △Borrowings from central bank △Loans from banks and other financial institutions Transactional financial liabilities Derivative financial liabilities Notes payable Accounts payable Account collected in advance Contract liabilities △Financial assets sold under repurchase agreements △Deposits from customers and interbank deposits △Funds from securities trading brokerage business △Funds from securities underwriting business Employee payroll payable Taxes payable Other payables Including: Interest payable Dividends payable △Employee payroll payable △Payables for reinsurance Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: △Insurance contract reserves Long-term borrowings Bonds payable Including: Preferred stock Perpetual capital bonds Lease liabilities Long-term payables Long-term payable to employees Estimated liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Shareholder's equity: Capital stock Other equity instruments Including: Preferred stock Perpetual capital bonds Capital reserves Less: treasury stock Other comprehensive income Special reserves Surplus reserves △General risk reserve Undistributed profit Total shareholder's equity Total liabilities and shareholder's equity 109,487,064.39 -408,809,468.50 2,807,862,747.73 2,842,282,866.47 109,487,064.39 -862,106,544.32 2,353,475,671.91 2,663,961,971.07 2,380,234,900.84 2,379,144,900.84 34,420,118.74 726,950,251.00 310,486,299.16 726,950,251.00 34,420,118.74 310,486,299.16 177,720.27 977,825.28 33,225,676.78 21,082,795.47 3,213,302.88 341,902.14 1,037,881.62 309,067,618.99 21,082,795.47 3,213,302.88 December 31 2021 38,896.41 Monetary Unit: RMB Yuan December 31 2020 Note 38,896.41 -

内容: Consolidated Income Statement

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Items I. Total operating income Including: Operating income △Interest income △Premiums earned △Fee and commission income II. Total operating cost Including: Operating cost △Interest expenses △Fee and commission expenses △Surrenders △Net claims paid △Net appropriation for insurance contracts reserves △Dividend expenses for policyholders △Reinsurance expenditures Tax and surcharges Selling expenses Administration expenses Research and development expenses Financial expenses Including: interest expenses Interest income Add: Other income Income from investment (Losses shall be filled in with “-”) Including: income from investment on joint venture and cooperative enterprise Income from derecognition of financial assets measured at amortized cost △Income from exchange(Losses shall be filled in with “-”) Income from net exposure hedging(Losses shall be filled in with “-”) Income from changes in fair value (Losses shall be filled in with “-”) Credit impairment loss(Losses shall be filled in with “-”) Income from assets impairment(Losses shall be filled in with “-”) Income from asset disposal (Losses shall be filled in with “-”) III. Operating profit (Losses shall be filled in with “-”) Add: non-operating income Less: non-operating expenditure IV. Total profit (Total losses shall be filled in with “-”) Less: income tax expense V. Net profit (Net loss shall be filled in with “-”) Including: net profit of the merged party before the merger (I) Classified by operations continuity: 1. Net profit from continuing operations (Net loss shall be filled in with “-”) 2. Net profit from discontinuing operations (Net loss shall be filled in with “-”) (II) Classified by ownership attribution: 1、Net profit attributable to shareholders of the parent company (Net loss shall be filled in with “-”) 2、Minority interest income (Net loss shall be filled in with “-”) VI. Net of tax from other comprehensive income Net of tax from other comprehensive income attributable to shareholders of the parent company 1.Other comprehensive income that cannot be reclassified into the profit and loss （1）Remeasure changes in defined benefit plans （2）Other comprehensive income that cannot be transferred to gains and losses under the equity method （3）Changes in fair value of other equity instrument investments （4）Changes in the fair value of the company's own credit risk 2.Other comprehensive income that will be reclassified into the profit and loss （1）Other comprehensive income that can be transferred to gains and losses under the equity method （2）Changes in fair value of other debt investments （3）Reclassification of financial assets included in other comprehensive income （4）Provision for credit impairment of other debt investments （5）Cash flow hedge reserve （6）Balance arising from the translation of foreign currency （7）Other Net of tax from other comprehensive income attributable to minority shareholder VII. Total comprehensive income Total comprehensive income attributable to shareholders of the parent company Total comprehensive income attributable to minority shareholder VIII. Earnings per share: (I) Basic earnings per share (II) Diluted earnings per share Year 2021 Amount for the current period 11,763,093,835.56 11,763,093,835.56 Monetary Unit: RMB Yuan Amount for the prior period 8,741,749,912.11 8,741,749,912.11 Note VI.40

内容: Income Statement

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Items I. Total operating income Including: operating income △Interest income △Earned premium △Fee and commission income II. Total operating cost Including: operating cost △Interest expenses △Fee and commission expenses △Surrenders △Net claims paid △Net appropriation for insurance contracts reserves △Dividend expenses for policyholders △Reinsurance expenditures Tax and surcharges Selling expenses Administration expenses Research and development expenses Financial expenses Including: interest expenses Interest income Add: Other income Income from investment (Losses shall be filled in with “-”) Including: income from investment on joint venture and cooperative enterprise Income from derecognition of financial assets measured at amortized cost (Losses shall be filled in with “-”) △Income from exchange(Losses shall be filled in with “-”) Income from net exposure hedging(Losses shall be filled in with “-”) Income from changes in fair value (Losses shall be filled in with “-”) Credit impairment loss(Losses shall be filled in with “-”) Income from assets impairment(Losses shall be filled in with “-”) Income from asset disposal (Losses shall be filled in with “-”) III. Total profit (Total losses shall be filled in with “-”) ?Add: non-operating income Less: non-operating expenditure IV. Total profit (Total losses shall be filled in with “-”) Less: income tax expense V. Net profit (Net loss shall be filled in with “-”) (I) Net profit from continuing operations (Net loss shall be filled in with “-”) (II) Net profit from discontinuing operations (Net loss shall be filled in with “-”) VI. Net of tax from other comprehensive income (I) Other comprehensive income that cannot be reclassified into the profit and loss 1.Other comprehensive income that cannot be reclassified into the profit and loss 2. Other comprehensive income that cannot be transferred to gains and losses under the equity method （3）Changes in fair value of other equity instrument investments （4）Changes in the fair value of the company's own credit risk (II) Other comprehensive income that will be reclassified into the profit and loss （1）Other comprehensive income that can be transferred to gains and losses under the equity method （2）Changes in fair value of other debt investments （3）Reclassification of financial assets included in other comprehensive income （4）Provision for credit impairment of other debt investments （5）Cash flow hedge reserve （6）Balance arising from the translation of foreign currency （7）Other VII. Total comprehensive income VIII. Earnings per share (I) Basic earnings per share (II) Diluted earnings per share -99,118.26 -24,042.07 452,838,371.80 458,704.02 453,297,075.82 453,297,075.82 453,297,075.82 -33,884.15 181,509,805.75 4,001.44 1,015,288.35 180,498,518.84 180,498,518.84 180,498,518.84 Year 2021 Monetary Unit: RMB Yuan Note XVI.4 Amount for the current period Amount for the prior period 591,060.56 1,181,687.83 591,060.56 9,311,844.39 341,162.52 259,377.02 8,710,846.48 458.37 2,566.23 84,564.61 461,597,751.35 1,181,687.83 26,118,381.35 151,241.71 25,988,631.19 -21,491.55 26,478.83 79,821.19 206,400,562.23 XVI.5 XVI.4

内容: Consolidated Cash Flow Statement

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Items I. Cash Flows from Operating Activities: Cash Receipts from Sales of Goods or Rendering of Services △Net increase in customer deposits and due to banks and other financial institutions △Net increase in borrowings from the Central Bank △Net increase in borrowings from other financial institutions △Cash received for insurance premium △Net cash received from reinsurance contracts △Net increase in deposits and investments from policyholders △Cash received for interest, fee and commission △Net increase in borrowings from banks △Net cash increase under repurchase agreements △Net increase received from securities trading brokerage business Tax Refund Receipts Other Cash Receipts Concerning Operating Activities Subtotal of Cash Inflows from Operating Activities Cash Paid for Purchase of Goods and Accepting Services △Net increase in loans and advances to customers △Net increase in deposit in the Central Bank and due from banks and other financial institutions △Cash paid for claims in insurance contracts △Net increase in loans to banks and other financial institutions △Cash paid for interest, fee and commission △Cash paid for dividends for policyholders Cash Paid to and for Employees Taxes and Fees Paid Other Cash Paid Concerning Operating Activities Subtotal of Cash Outflows from Operating Activities Net Cash Flows from Operating Activities II. Cash Flows from Investment Activities: Cash Receipts from Disinvestment Cash Receipts from Returns on Investments Net Cash from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets Net Cash Received by Disposal of Subsidiaries and Other Business Other Cash Receipts Concerning Investment Activities Subtotal of Cash Inflows from Investment Activities Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets Cash Paid for Investments △Net increase in mortgage loans Net Cash Paid for obtaining Subsidiaries and Other Business Units Other Cash Paid Concerning Investment Activities Subtotal of Cash Outflows from Investment Activities Net Cash Flows from Investment Activities III. Cash Flows from Financing Activities: Cash Receipts from Accepting Investment

内容: Including: Cash Received by Subsidiaries Absorbing the Investment from Minority Shareholders

内容: Cash Receipts from Borrowings Other Cash Receipts Concerning Financing Activities Subtotal of Cash Inflows from Financing Activities Cash Paid for Repayment of Debts

内容: Cash Paid for Distribution of Dividends, Profits or Repayment of Interests

内容: Including: Dividends and Profits Paid by Subsidiaries to Minority Shareholders

内容: Other Cash Paid Concerning Financing Activities Subtotal of Cash Outflows from Financing Activities Net Cash Flows from Financing Activities IV. Exchange Rate Fluctuation Consequences on Cash and Cash Equivalents V. Net Increase in Cash and Cash Equivalents Add: Opening Balance of Cash and Cash Equivalents VI. Closing Balance of Cash and Cash Equivalents

内容: Statement of Cash Flows

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Items I. Cash Flows from Operating Activities: Cash Receipts from Sales of Goods or Rendering of Services △Net increase in customer deposits and due to banks and other financial institutions △Net increase in borrowings from the Central Bank △Net increase in borrowings from other financial institutions △Cash received for insurance premium △Net cash received from reinsurance contracts △Net increase in deposits and investments from policyholders △Cash received for interest, fee and commission △Net increase in borrowings from banks △Net cash increase under repurchase agreements △Net increase received from securities trading brokerage business Tax Refund Receipts Other Cash Receipts Concerning Operating Activities Subtotal of Cash Inflows from Operating Activities Cash Paid for Purchase of Goods and Accepting Services △Net increase in loans and advances to customers

内容: △Net increase in deposit in the Central Bank and due from banks and other financial institutions

内容: △Cash paid for claims in insurance contracts △Net increase in loans to banks and other financial institutions △Cash paid for interest, fee and commission △Cash paid for dividends for policyholders Cash Paid to and for Employees Taxes and Fees Paid Other Cash Paid Concerning Operating Activities Subtotal of Cash Outflows from Operating Activities Net Cash Flows from Operating Activities II. Cash Flows from Investment Activities: Cash Receipts from Disinvestment Cash Receipts from Returns on Investments Net Cash from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets Net Cash Received by Disposal of Subsidiaries and Other Business Units Other Cash Receipts Concerning Investment Activities Subtotal of Cash Inflows from Investment Activities

内容: Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets

内容: Cash Paid for Investments △Net increase in mortgage loans Net Cash Paid for obtaining Subsidiaries and Other Business Units Other Cash Paid Concerning Investment Activities Subtotal of Cash Outflows from Investment Activities Net Cash Flows from Investment Activities III. Cash Flows from Financing Activities: Cash Receipts from Accepting Investment

内容: Cash Receipts from Borrowings Other Cash Receipts Concerning Financing Activities Subtotal of Cash Inflows from Financing Activities Cash Paid for Repayment of Debts Cash Paid for Distribution of Dividends, Profits or Repayment of Interests Including: Dividends and Profits Paid by Subsidiaries to Minority Shareholders Other Cash Paid Concerning Financing Activities Subtotal of Cash Outflows from Financing Activities Net Cash Flows from Financing Activities IV. Exchange Rate Fluctuation Consequences on Cash and Cash Equivalents V. Net Increase in Cash and Cash Equivalents Add: Opening Balance of Cash and Cash Equivalents VI. Closing Balance of Cash and Cash Equivalents

内容: Consolidated Statement of Changes in Equity

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Year 2021

内容: Current Amount Shareholder's Equity attributable to the Parent Company Items Other equity instruments Capital stock Preferred stock Perpetual bond Others I. Year-end balance of last year Add: changes in accounting policies Correction of prior period errors Merger of enterprises under the same control Other II. Balance at beginning of current year III. Increases and decreases of current year (Decrease shall be filled in with “-”) (I) Total comprehensive income (II) Investment of shareholders and capital reduction 1. Common equity invested by shareholders 2. Capital invested by other equity instruments holders 3. The amount of shares recorded into the shareholder's equity 4. Others (III) Distribution of profits 1. Withdrawal of surplus reserves 2. Withdrawal of general risk reserve 3. Distribution to shareholders 4. Others (IV) Inner carrying-over of shareholders' equities 1. Capital reserve converted into capital (or capital stock) 2. Surplus public accumulation converted into capital (or capital stock) 3. Surplus public accumulation loss remedy 4. Change in defined benefit plan carried forward to retained earnings 5.Other comprehensive income carried forward to retained earnings 6. Others (V) Special reserve 1. Withdrawal for current period 2. Use for current period (VI) Others IV. Closing balance of current year 726,950,251.00 1,675,918,350.95 -682,282.22 122,122,436.98 391,493,534.34 1,090,000.00 1,090,000.00 726,950,251.00 1,674,828,350.95 1,090,000.00 -363,258.66 -319,023.56 -319,023.56 122,122,436.98 187,033,763.26 204,459,771.08 204,459,771.08 726,950,251.00 1,674,828,350.95 Capital reserve Less: treasury stock Other comprehensive income -363,258.66 Special reserve Surplus reserve 122,122,436.98 △General risk reserve Minority equity Undistributed profit 187,033,763.26 Others Subtotal 2,710,571,543.53 2,710,571,543.53 205,230,747.52 204,140,747.52 1,090,000.00 1,090,000.00 2,915,802,291.05 396,351,501.50 -27,024,409.19 -27,024,409.19 388,601,959.83 7,749,541.67 34,773,950.86 388,601,959.83 Total shareholders' equities

内容: Monetary Unit: RMB Yuan

内容: Consolidated Statement of Changes in Equity (Continued)

内容: Amount of Last Period Shareholder's Equity attributable to the Parent Company Items Other equity instruments Capital stock Preferred stock Perpetual bond Others I. Year-end balance of last year Add: changes in accounting policies Correction of prior period errors Merger of enterprises under the same control Other II. Balance at beginning of current year III. Increases and decreases of current year (Decrease shall be filled in with “-”) (I) Total comprehensive income (II) Investment of shareholders and capital reduction 1. Common equity invested by shareholders 2. Capital invested by other equity instruments holders 3. The amount of shares recorded into the shareholder's equity 4. Others (III) Distribution of profits 1. Withdrawal of surplus reserves 2. Withdrawal of general risk reserve 3. Distribution to shareholders 4. Others (IV) Inner carrying-over of shareholders' equities 1. Capital reserve converted into capital (or capital stock) 2. Surplus public accumulation converted into capital (or capital stock) 3. Surplus public accumulation loss remedy 4. Change in defined benefit plan carried forward to retained earnings 5.Other comprehensive income carried forward to retained earnings 6. Others (V) Special reserve 1. Withdrawal for current period 2. Use for current period (VI) Others IV. Closing balance of current year 726,950,251.00 1,674,828,350.95 -363,258.66 122,122,436.98 187,033,763.26 -126,601,129.37 685,790,364.00 41,159,887.00 41,159,887.00 41,159,887.00 1,595,672,048.19 79,156,302.76 79,156,302.76 205,757,432.13 267,628.14 -630,886.80 -630,886.80 122,122,436.98 2,186,806.56 184,846,956.70 184,846,956.70 685,790,364.00 1,595,672,048.19 Capital reserve Less: treasury stock Other comprehensive income 267,628.14 Special reserve Surplus reserve 122,122,436.98 △General risk reserve Minority equity Undistributed profit 2,186,806.56 Others Subtotal 2,406,039,283.87 2,406,039,283.87 304,532,259.66 184,216,069.90 120,316,189.76 246,917,319.13 -126,601,129.37 2,710,571,543.53 388,601,959.83 -3,713,626.89 -227,118,308.04 -3,713,626.89 585,056,356.90 -196,454,397.07 34,377,537.86 -227,118,308.04 585,056,356.90 Total shareholders' equities

内容: Statement of Changes in Equity

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Year 2021 Current Amount Other equity instruments Items Capital stock Preferred stock Perpetual bond Capital reserve Others 2,379,144,900.84 2,379,144,900.84 1,090,000.00 1,090,000.00 1,090,000.00 Less: treasury stock Other comprehensive income

内容: Special reserve

内容: Surplus reserve

内容: △General risk reserve

内容: Undistributed profit

内容: Total shareholders' equities

内容: I. Year-end balance of last year Add: changes in accounting policies Correction of prior period errors Other II. Balance at beginning of current year III. Increases and decreases of current year (Decrease shall be filled in with “-”) (I) Total comprehensive income (II) Investment of shareholders and capital reduction 1. Common equity invested by shareholders 2. Capital invested by other equity instruments holders 3. The amount of shares recorded into the shareholder's equity 4. Others (III) Distribution of profits 1. Withdrawal of surplus reserves 2. Withdrawal of general risk reserve 3. Distribution to shareholders 4. Others (IV) Inner carrying-over of shareholders' equities 1. Capital reserve converted into capital (or capital stock) 2. Surplus public accumulation converted into capital (or capital stock) 3. Surplus public accumulation loss remedy 4. Change in defined benefit plan carried forward to retained earnings 5.Other comprehensive income carried forward to retained earnings 6. Others (V) Withdrawal and use of Special reserve 1. Withdrawal for current period 2. Use for current period (VI) Others IV. Closing balance of current year

内容: Statement of Changes in Equity (Continued)

内容: Prepared by: Hainan Jingliang Holdings Co., Ltd. Year 2021 Amount of Last Period Other equity instruments Items Capital stock Preferred stock Perpetual bond Capital reserve Others 2,173,387,468.71 2,173,387,468.71 205,757,432.13 205,757,432.13 205,757,432.13 Less: treasury stock Other comprehensive income

内容: Hainan Jingliang Holdings Co., Ltd. Notes to the 2021 Financial Statements (Unless otherwise stated, the amount unit is RMB Yuan)

内容: I.

内容: Basic Information of the Company Place of incorporation, form of organization and head office address

内容: Hainan Jingliang Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang Holdings") is established in accordance with the Hainan Provincial People's Government General Office QFBH (1992) No.1, approved by QY (1992) SGZ No. 6 Document of the People's Bank of Hainan Province and re-registered by Hainan Pearl River Enterprise Company on January 11, 1992. The Company issued 81,880,000 shares in total upon re-registration, of which 60,793,600 shares were converted from the net assets of the original company and 21,086,400 shares were newly issued. And the name of the Company is Hainan Pearl River Enterprise Co., Ltd. The business license registration number of the joint-stock company is 20128455-6, and the holding parent company Guangzhou Pearl River Enterprise Group holds 36,393,600 shares, accounting for 44.45%. Approved by ZGB (1992) No. 83 Document of the People's Bank of China in December 1992, the additional 21,086,400 shares were listed on the Shenzhen Stock Exchange for trading. The industry involved is real estate. On March 25, 1993, in response to QGBH (1993) No.028 of Hainan Provincial Leading Group Office and SRYFZ (1993) No.099 of Shenzhen Special Economic Zone Branch of the People's Bank of China, the Company increased its share capital by converting the original share capital into 139,196,000 shares (according to distribution of 10, delivery of 5 and transfer of 2), with the controlling shareholder Guangzhou Pearl River Enterprises Group holding 48,969,120 shares accounting for 35.18% at the end of 1993. In 1994, the share capital was increased by 10 to 10, and the total share capital was 278,392,000 shares after the increase. The controlling shareholder, Guangzhou Pearl River Enterprises Group, holds 97,938,240 shares, accounting for 35.18%. In 1995, the issuance of 50,000,000 B Shares was approved by SZBF (1995) No.45 and SZBF (1995) No.12. The share capital of the Company was increased by 10:1.5 on the basis of the share capital after the additional B shares were issued, and the share capital of the Company after the increase was 377,650,800 shares. The holding parent company, Guangzhou Pearl River Enterprises Group, held 112,628,976 shares, accounting for 29.82% of the total. In 1999, Guangzhou Pearl River Enterprises Group transferred all 112,628,976 shares to Beijing

内容: Wanfa Real Estate Development Co., Ltd.. After the transfer of shares was completed in June 1999, Beijing Wanfa Real Estate Development Co., Ltd. held 112,628,976 shares of the Company, accounting for 29.82% of the total shares of the Company, and became the controlling shareholder of the Company. On January 10, 2000, the name of the Company was changed to Hainan Pearl River Holding Co., Ltd. and the Business License for Enterprise Legal Person was renewed by Industrial & Commerce Administration Bureau of Hainan Province. On August 17, 2006, the reform plan of the split share structure of the Company was implemented. The Company transferred 49,094,604 shares of capital stock to all shareholders at the ratio of 10 to 1.3. The original non-tradable shareholders transferred the increased shares to the tradable A-share holders. Beijing Wanfa Real Estate Development Co., Ltd. reimbursed the consideration shares of the non-tradable shareholders who have not expressly expressed their opinions. The converted total share capital was 426,745,404 shares, and the original controlling shareholder Beijing Wanfa Real Estate Development Co., Ltd. held 107,993,698 shares, accounting for 25.31%. Shareholders of non-tradable shares repaid 3,289,780 shares in consideration of the split share structure in 2007. Shareholders of non-tradable shares repaid 1,196,000 shares in consideration of the split share structure in 2009. On 2 September 2016, Beijing Wanfa Real Estate Development Co., Ltd., the original controlling shareholder, transferred all of its 112,479,478 shares to Beijing Grain Group Co., Ltd. (hereinafter referred to as "Beijing Grain Group"). Upon completion of the share transfer in September 2016, Beijing Grain Group Co., Ltd. held 112,479,478 shares, accounting for 26.36% of the total shares of the Company. In November 2016, based on the confidence in the subject matter of the material asset restructuring and the future development of the Company, Beijing Grain Group Co., Ltd. decided to increase its shareholding through centralized bidding in the secondary market. After the increase, it held 123,561,963 shares of the Company, accounting for 28.95% of the total number of shares, and became the largest shareholder of the Company. The Company determined July 31, 2017 as the delivery date of material assets in accordance with the material assets restructuring plan and the delivery agreement. On September 14, 2017, approved pursuant to the resolution of the Second Extraordinary General Meeting of Shareholders of the Company on November 18, 2016 and the Approval Reply of the China Securities Regulatory Commission dated July 28, 2017 On Approval of Hainan Pearl River Holding Co., Ltd. to Purchase Assets and Raise Supporting Funds from Beijing Grain Group Co., Ltd. (ZJXK (2017) No.1391): 1) The Company purchased assets from the original shareholders of Beijing Grain Food Co., Ltd. (hereinafter referred to as Beijing Grain Food) by issuing 210,079,552 shares of the balance between the transaction price of the injected assets and the assets to be purchased (the difference between the

内容: transaction price of the injected assets and the assets to be purchased was RMB 1,699.5436 million yuan). The par value in the issuance was RMB 1.00 per share and the issuance price was RMB 8.09 per share; 2) The Company has issued 48,965,408 non-public shares of the Company to Beijing Grain Group for the purpose of purchasing the supporting funds raised from the assets of the issuance of shares. The par value per share of the Company was RMB1.00 and the issuance price was RMB8.82 per share. The shareholder Beijing Grain Group conducted subscription in monetary funds. Upon completion of the issue, the registered capital was RMB 685,790,364.00 and the share capital was RMB 685,790,364.00. Beijing Grain Group, which accounted for 42.06% of the total number of shares, became the largest shareholder of the Company. On November 21, 2019, with the approval of Beijing Shounong Food Group Co., Ltd. (Beijing Shounong Food publish [2019] No. 212), Approval on the Plan of Purchasing Assets by Cash and Issuing Shares of Hainan Jingliang Holdings Co., Ltd, On April , 2020, with the approval of Approval of Hainan Jingliang Holding Co., Ltd. Issuance Shares to Wang Yuecheng to Purchase Assets by China Securities Regulatory Commission [2020] No. 610, the company shall not issue more than 41,159,887 new shares in private offering to raise funds supporting the purchase of assets through the issued shares. The Company and its subsidiary, Beijing Jingliang Food Co., Ltd., purchased the 25.1149% equity stake of Zhejiang Little Prince by cash and issuance of shares. As of December 31, 2021, the company has issued 726,950,251.00 shares, and the company's share capital is 726,950,251.00 yuan; Uniform Social Credit Code: 914600002012845568; Registration authority: Hainan Market Supervision Administration; Company type: Limited Company (Listed, State-controlled); Registered address: F29, Dihao Building, Pearl River Square, Binhai Avenue, Haikou City; Legal representative: Li Shaoling.

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

内容: The Company belongs to manufacturing-agricultural and sideline food processing industry. Its main business ativites mainly includes: food, beverages, agricultural and sideline products, vegetable proteins and their products, organic fertilizers, microbial fertilizers, production and marketing of agricultural fertilizers; land consolidation, soil remediation; agricultural comprehensive planting development, animal husbandry and aquaculture, agricultural equipment production and marketing; computer network technology, investment in communication projects, research and development and application of high-tech products; investment and consultation of environmental protection projects; animation, graphic design; import and export trade in goods and technology; rental of own premises. The Company and its subsidiaries are principally engaged in the processing, production and sales of foodstuffs, agricultural and sideline products, grease, oils, and leisure foods.

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

内容: The parent company of the company is Beijing Grain Group Co., Ltd., and the ultimate parent company is Beijing shounong Food Group Co., Ltd. 4. The approval institution and the approval date of the financial statements.

内容: These financial statements have been approved and reported by the Board of Directors of the Company in its resolution dated March 29, 2022. 5. Consolidation scope The consolidated scope of the consolidated financial statements of the company is determined on the basis of control, including the financial statements of the company and all subsidiaries. Subsidiaries refer to enterprises or entities controlled by the Company. A total of 18 subsidiaries of the Company were included in the scope of consolidation on 31 December, 2021, as detailed in Note 8 "Interests in Other Entities". The consolidation scope of the Company for the current period is same as the previous period as detailed in Note 7, "Change in Consolidation Scope". II. Preparation Basis for Financial Statements 1. Preparation Basis

内容: Based on the assumption of going concern and according to actual transaction events, the financial statements are prepared in accordance with the relevant provisions of Accounting Standard for Business Enterprises and the following stated Significant Accounting Policies and Estimates. 2. Going concern The Company has a going concern capability for 12 months from the end of the reporting period and no material matters affecting the company's going concern capability were found. Therefore, the financial statements are presented on a going concern basis is reasonable. III. Significant Accounting Policies and Estimates The Company and its subsidiaries are engaged in the processing, production and sales of food, agricultural and sideline products, grease, oil and leisure food. According to the characteristics of actual production and operation and the provisions of relevant accounting standards for business enterprises, the Company and its subsidiaries have formulated a number of specific accounting policies and accounting estimates for transactions and events such as revenue recognition. For details, please refer to the descriptions in Note Ⅲ, 26 “Revenue". For descriptions of the significant accounting judgments and estimates made by the management, please refer to Note Ⅲ, 32 “Significant Accounting Judgments and Estimates"

内容: 1. Statement of Compliance of Accounting Standards for Business Enterprises The financial statements prepared by the Company based on the above preparation basis conform to the requirements of the Accounting Standards for Business Enterprises and their application guidelines, explanations and other relevant provisions (collectively referred to as "ASBE") and truly and completely reflect the Company's financial status, operating results, cash flow and other relevant information. In addition, the preparation of this financial report refers to the Rules for Preparation and Reporting Information Disclosure of Companies Offering Securities to the Public No.15-General Provisions on Financial Reports revised by China Securities Regulatory Commission in 2014 and the presentation and disclosure requirements in Notice on Matters Related to the Implementation of the New Accounting Standards for Enterprises by Listed Companies (Accounting Department Letter [2018] No. 453) 2. Accounting Period and Business Cycle The accounting period of the Company is divided into an annual period and an interim period. The accounting interim period refers to the reporting period shorter than a full accounting year. The fiscal year of the Company adopts the Gregorian calendar year, that is, from January 1 to December 31 of each year. The normal business cycle is the period from the time the Company purchases assets for processing to the time when cash or cash equivalents are realized. The Company uses 12 months as an business cycle and uses it as a liquidity classification standard for assets and liabilities. 3. Bookkeeping Standard Currency RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries operate. The Company and its domestic subsidiaries use RMB as the bookkeeping standard currency. The offshore subsidiaries of the Company determine USD as their bookkeeping standard currency based on the currencies in the main economic environment in which they operate. The currency used by the Company in preparing these financial statements is RMB. 4. The Accounting Treatment of Business Combination under the Same Control and Different Control Business Combination refers to the transaction or event in which two or more separate enterprises are merged to form one reporting entity. Business combination can be divided into business combination under the same control and business combination under different control. (1) Business combination under the same control Enterprises participating in the combination are ultimately controlled by the same party or

内容: multiple parties before and after the combination, and the control is not temporary, so it is the business combination under the same control. In case of business combination under the same control, the party that obtains control of other enterprises participating in the combination on the combination date shall be the combination party, and the other enterprises participating in the combination shall be the merged party. The combination date refers to the date on which the combination party actually acquires control over the merged party. The assets and liabilities acquired by the combination party are measured at the book value of the merged party at the date of consolidation, including goodwill that was formed during acquisition by end controller . If the difference between the book value of the net assets acquired by the merging party and the book value of the merged consideration (or the total par value of the issued shares) paid by the merging party, and the capital reserve (share capital premium) shall be adjusted; If the capital reserve (equity premium) is insufficient to offset, the retained earnings shall be adjusted. The direct expenses incurred by the merging party for the purpose of business combination shall be included in the profits and losses of the current period when they are incurred. (2) Business combination under different control If the enterprises participating in the merger are not ultimately controlled by the same party or multiple parties before and after the merger, the enterprise merger is not under the same control. In case of business combination under different control, the party that obtains control of other enterprises participating in the combination on the date of purchase shall be the Purchaser, and the other enterprises participating in the combination shall be the Purchasee. Purchase date means the date on which the Purchaser actually acquires control of the Purchasee. For business combination under different control, the merger cost includes the assets, liabilities and fair value of equity securities issued by the Purchaser in order to obtain the control over the Purchasee on the date of purchase, and the intermediary fees such as audit, legal service, appraisal and consultation and other management fees for the enterprise merger are used to record into the profits and losses of the current period when incurred. The transaction costs of equity or debt securities issued by the Purchaser as a merger consideration are included in the initial recognition amount of the equity or debt securities. Contingent consideration involved shall be included in the consolidation cost at its fair value at the purchase date, and the consolidation goodwill shall be adjusted accordingly if new or further evidence of the existence of circumstances at the purchase date appears within 12 months after the purchase date and the adjustment or consideration is required. The consolidation cost incurred by the Purchaser and the identifiable net assets acquired during the consolidation are measured at the fair value at the date of purchase. The difference between the merger costs and the fair value shares of the identifiable net assets of the Purchasee at the purchase date obtained in the merger is recognized as

内容: goodwill. If the combined cost is less than the fair value of the identifiable net assets of the Purchasee in the merger, first, the fair value of the identifiable assets, liabilities and contingent liabilities of the Purchasee and the measurement of the consolidation cost shall be re-checked. If the consolidation cost is still smaller than the fair value share of the identifiable net assets of the Purchased obtained in the consolidation after the re-check, the difference shall be recorded into the profits and losses of the current period. When the Purchaser acquires the deductible temporary difference of the Purchasee, if it fails to recognize the deferred income tax assets on the date of purchase because it does not meet the recognition conditions for the deferred income tax, and within 12 months of the date of purchase, new or further information is obtained indicating that the relevant circumstances at the purchase date already exist and the economic benefits from the temporary difference deductible by the purchaser on the purchase date are expected to be realized, the relevant deferred income tax assets shall be recognized, and the goodwill shall be reduced. If the goodwill is not sufficiently offset, the difference shall be recognized as the current profit or loss; In addition to the above circumstances, the deferred income tax assets related to the enterprise merger are recognized and included in the current profits and losses. Through multi-transaction and step-by-step business combination under different control, according to the Circular of the Ministry of Finance on Printing and Issuing the Interpretation of Accounting Standards for Business Enterprises No.5 (CK (2012) No.19) and Article 51 of the Accounting Standards for Business Enterprises No.33-Consolidated Financial Statements on the judgment criteria of "package deal" (see 5 (2) of Note 3), it is determined whether the multiple transactions belong to the "package deal". In the case of a "package deal", the accounting treatment shall be performed with reference to the description in the preceding paragraphs of this section and Note 3, 13 "Long-term Equity Investments"; If the transaction is not a "package deal", the accounting treatment shall be distinguished between the individual financial statements and the consolidated financial statements: In the individual financial statements, the sum of the book value of the equity investment held by the Purchaser prior to the purchase date and the cost of the new investment at the purchase date shall be taken as the initial investment cost of the investment; Where the equity of the Purchased held before the date of purchase involves other comprehensive income, the other consolidated income associated with the investment is accounted for on the same basis as the assets or liabilities directly disposed of by the Purchaser (i.e., except for the corresponding share in the change caused by the acquisition of the net liability or net assets of the defined benefit plan remeasured in accordance with the equity method, the rest is transferred to the current investment income).

内容: In the consolidated financial statements, the equity of the Purchased held prior to the date of purchase is remeasured according to the fair value of the equity at the date of purchase, and the difference between the fair value and the carrying value is included in the investment income of the current period; Where the equity of the Purchasee held before the date of purchase involves other comprehensive income, other consolidated income related thereto shall be accounted for on the same basis as the direct disposal of the relevant assets or liabilities by the Purchaser (i.e., except for the corresponding share in the change caused by the acquisition of the net liability or net asset of the defined benefit plan remeasured in accordance with the equity method, the rest is converted into the investment income of the current period to which the acquisition date belongs). 5. Preparation Method of Consolidated Financial Statement (1) Principles for determining the scope of the consolidated financial statement The scope of consolidation of the consolidated financial statements is determined on a control basis. Control means that the Company has the authority over the Investee, enjoys a variable return by participating in the relevant activities of the Investee, and has the ability to use its authority over the Investee to influence the amount of such return. The scope of the merger includes the Company and all its subsidiaries. Subsidiary refers to the main body controlled by the Company. The Company will re-evaluate the above control definitions once the relevant facts and circumstances change, which results in the change of the relevant elements. (2) Preparation method of consolidated financial statement The Company begins to incorporate the net assets of the subsidiary and the actual control of the production and operation decisions into the scope of the merger from the date when the subsidiary is acquired; Cease to be included in the scope of the merger as of the date of loss of effective control. For the subsidiaries disposed of, the operating results and cash flows prior to the date of disposal have been appropriately included in the consolidated income statement and consolidated cash flow statement; For subsidiaries disposed of in the current period, the opening amount of the consolidated balance sheet is not adjusted. The operating results and cash flows of subsidiaries increased by consolidation after purchase have been properly included in the consolidated income statement and consolidated cash flow statement, and the opening and comparative amounts in the consolidated financial statements have not been adjusted for subsidiaries that are not under the same control. The operating results and cash flows of the subsidiaries increased by consolidation under the same control from the beginning of the consolidation period to the consolidation date have been appropriately included in the consolidated profit statement and consolidated cash flow statement, and the comparative amount of the consolidated financial statements has been adjusted at the same time. In the preparation of the consolidated financial statements, if the accounting policies or

内容: accounting periods adopted by the subsidiaries are inconsistent with those adopted by the Company, necessary adjustments shall be made to the financial statements of the subsidiaries in accordance with the accounting policies and accounting periods of the Company. For subsidiaries acquired through business combination under different control, the financial statements shall be adjusted on the basis of the fair value of identifiable net assets at the date of purchase. All significant transaction balances, transactions and unrealized profits within the Company are offset at the time of preparation of the consolidated financial statements. The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the Company for the current period are separately presented as minority shareholders' equity and minority shareholders' profit or loss in the consolidated financial statements under shareholders' equity and net profit. The shares of minority shareholders' equity in the net profits and losses of subsidiaries for the current period are shown as "minority shareholders' profits and losses" under the net profit item in the consolidated income statement. Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' share in the shareholders' equity of the subsidiary at the beginning of the period, and still decrease by a number of shareholders' equity. When the control of the original subsidiary is lost due to the disposal of part of the equity investment or other reasons, the residual equity shall be revalued according to its fair value at the date of loss of control. The sum of consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference between the shares of the net assets of the original subsidiary that shall be continuously calculated from the purchase date according to the original shareholding proportion shall be included in the investment income of the current period of loss of control. Other comprehensive income related to the equity investment of the original subsidiary, in the event of loss of control, the accounting treatment is performed on the same basis as the direct disposal of the relevant assets or liabilities by the Purchased (i.e. converted to current investment income, except for changes resulting from the re-measurement of the net liabilities or net assets of the Defined Benefit Plan in the original subsidiary). Thereafter, the residual equity shall be subsequently measured in accordance with the relevant provisions of Accounting Standards for Business Enterprises No.2-Long-term Equity Investment or Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments, as detailed in Note Ⅲ, 13-Long-term Equity Investment or Note Ⅲ, 9-Financial Instruments. If the Company disposes of the equity investment in subsidiaries step by step until it loses control through multiple transactions. It is necessary to distinguish whether the transactions that dispose of the equity investment in subsidiaries until it loses control belong to a package deal or not. The terms, conditions and economic impact of the transactions for the disposal of equity investments in

内容: subsidiaries are in accordance with one or more of the following circumstances and generally indicate that multiple transactions should be accounted for as a package deal: ① These transactions were entered into simultaneously or taking into account each other's influence; ② Only when these transactions are taken together can a complete business result be achieved; ③ The occurrence of one transaction depends on the occurrence of at least one other transaction; ④ It is not economical to consider a transaction alone, but it is economical to consider it in conjunction with other transactions. For transactions that are not part of the package deal, each transaction shall be accounted for in accordance with the principles applicable to the "partial disposal of long-term equity investments in subsidiaries without loss of control" (as detailed in 13 of Note Ⅲ) and the "loss of control over existing subsidiaries as a result of the disposal of part of the equity investments or other reasons" (as detailed in the preceding paragraph), as appropriate. If the transactions involving the disposal of equity investments in subsidiaries until the loss of control belong to a package deal, the transactions shall be accounted for as a transaction involving the disposal of subsidiaries and the loss of control; However, the difference between each disposal price and the share of the subsidiary's net assets corresponding to the disposal investment prior to the loss of control is recognized in the consolidated financial statements as other consolidated gains and transferred to the profit or loss for the current period of loss of control in the event of loss of control. 6. Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation A joint venture arrangement is an arrangement under the joint control of two or more participants. The Company divides the joint venture arrangement into joint operation and joint venture in accordance with the rights and obligations it enjoys in the joint venture arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. The Company's investment in the joint venture is accounted for using the equity method, and shall be treated in accordance with the accounting policy described in Note Ⅲ, 13 "Long-term Equity Investment Accounted by the Equity Method". The Company, as a joint venture party, recognizes the assets and liabilities held and assumed by the Company separately, and recognizes the assets and liabilities jointly held and assumed by the Company according to the shares of the Company; recognizes the revenue generated from the sale of the share of joint operating output enjoyed by the Company; recognizes revenue generated from the sale of output from joint operations on the basis of the Company's share; confirms the expenses

内容: incurred by the Company individually and the expenses incurred by the joint operation according to the shares of the Company. When the Company invests or sells assets as a joint venture (such assets do not constitute business, the same below), or purchases assets from the joint venture, the Company recognizes only the portion of the profits and losses attributable to the other participants in the joint venture that arises from the transaction prior to the sale of such assets to a third party. Where such assets are impaired in accordance with the provisions of Accounting Standards for Business Enterprises No.8-Impairment of Assets, the Company shall fully recognize such losses in the case where the assets are cast or sold by the Company to joint operations; For the assets purchased by the Company from the joint operation, the Company recognizes the losses according to the shares it assumes. 7. Determining Standards for Cash and Cash Equivalent Cash and cash equivalents of the Company include cash on hand, deposits that can be readily withdrawn on demand. Cash equivalents are investments held by the Company with a short term (usually maturing within three months from the date of purchase), high liquidity, readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 8. Foreign Currency Business and Translation of Foreign Currency Statements (1) Translation method for foreign currency transaction At the time of initial confirmation, the foreign currency transactions occurring in the Company shall be converted into the bookkeeping functional currency amount at the spot exchange rate on the trading day, but the foreign currency exchange business or transactions involving foreign currency exchange occurring in the Company shall be converted into the bookkeeping functional currency amount at the actual exchange rate. (2) Translation method for foreign currency monetary items and foreign currency non-monetary item On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on the balance sheet date, and the exchange difference arising therefrom shall be: ① The exchange difference arising from the special foreign currency borrowings related to the acquisition and construction of assets eligible for capitalization shall be handled in accordance with the principle of capitalization of borrowing costs; ② The exchange difference of the hedging instruments used for effective hedging of the net investment in overseas operations (the difference is included in other comprehensive income, and is not recognized as current profit or loss until the net investment is disposed of); ③ Except for the amortized cost, the exchange differences arising from the changes in the book balance of the available-for-sale monetary items in foreign currencies shall be included in the

内容: other comprehensive income, and shall be included in the profits and losses of the current period. Where the preparation of the consolidated financial statements involves overseas operations, if there are foreign currency monetary items constituting net investment in overseas operations, the exchange differences arising from exchange rate changes shall be included in other comprehensive income; When disposing of overseas operations, the profits and losses shall be transferred to the current disposal period. Non-monetary items in foreign currencies measured at historical cost shall still be measured at the bookkeeping amount in functional currency translated at the spot exchange rate on the transaction date. For non-monetary items in foreign currencies measured at fair value, the spot exchange rate at the date of fair value determination shall be adopted for conversion. The difference between the converted amount in functional currency and the amount in original functional currency shall be treated as the change in fair value (including the change in exchange rate), and shall be recorded into the profits and losses of the current period or recognized as other comprehensive income. (3) Translation method for financial statements in foreign currencies Where the preparation of the consolidated financial statements involves overseas operations, if there are foreign currency monetary items constituting net investment in overseas operations, the exchange differences arising from exchange rate changes shall be as "foreign currency report conversion difference" and be confirmed as other comprehensive income; When disposing of overseas operations, the profits and losses shall be transferred to the current disposal period. The foreign currency financial statements of overseas operations shall be converted into RMB statements in the following ways: the assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date; Except for "undistributed profits", other items of shareholders' equity shall be converted at the spot exchange rate at the time of occurrence. The income and expense items in the profit statement shall be converted at the average exchange rate of the current period on the date of transaction. The undistributed profit at the beginning of the period shall be the undistributed profit at the end of the period converted from the previous year; The undistributed profits at the end of the year shall be calculated and listed according to the converted profits distribution items; The difference between the converted asset items and the total amount of the liability items and shareholders' equity items shall be recognized as other comprehensive income as the translation difference in the foreign currency statements. In case of disposal of overseas operations and loss of control, the balance in translation of the foreign currency statements related to the overseas operations as shown below in the shareholders' equity items in the balance sheet shall be transferred to the profits and losses of the disposal period in whole or in proportion to the disposal of the overseas operations.

内容: Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the average exchange rate of the current period on the date of occurrence of the cash flows. The effect of exchange rate changes on cash shall be presented separately in the statement of cash flows as an reconciling item. Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the prior-period financial statements. When disposing of all the owner's equity of the Company's overseas operations or losing the control over overseas operations due to the disposal of part of the equity investment or for other reasons, if the following items of shareholders' equity in the balance sheet are shown below, the balance in translation of the foreign currency statement attributable to the owner's equity of the parent company related to the overseas operation shall be transferred to the profits and losses of the current disposal period. In the event that the proportion of overseas business interests is reduced due to the disposal of part of the equity investment or for other reasons, but the control over overseas business operations is not lost, the balance in the translation of the foreign currency statements related to the disposal of part of overseas business operations shall be attributed to minority shareholders' interests and shall not be transferred to the profits and losses of the current period. When disposing of part of the equity of an overseas operation as an associated enterprise or a joint venture, the balance of the translation of the foreign currency statements related to the overseas operation shall be transferred into the profits and losses of the current disposal period in the proportion of the overseas operation disposed of. 9. Financial instruments Financial instruments are the contracts that form the financial assets of one entity, and at the same time form the financial liabilities or equity instruments of other entities. (1) Classification, confirmation and measurement of financial assets According to the business mode of managing financial assets and the contractual cash flow characteristics of financial assets, the Company divides financial assets into: Financial assets measured at amortized cost. Financial assets measured at fair value with changes included in other comprehensive income. Financial assets that are measured at fair value and whose movements are included in the current profits and losses. Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value and whose changes are included in current profits and losses, relevant transaction costs are directly included in current profits and losses. For other types of financial assets, relevant transaction costs are included in the initial recognition amount. Accounts receivable or notes receivable arising

内容: from the sale of products or the provision of labor services that do not contain or take into account significant financing components shall be initially recognized by the Company in accordance with the amount of consideration that the Company is expected to be entitled to receive. ① Financial assets measured at amortized cost The Group measures financial assets at amortised cost if both of the following conditions are met : the financial asset is held within a business model with the objective to hold financial assets in order to collect 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, that is, the cash flow generated on a specific date is only the payment of principal and interest based on the unpaid principal amount. For such financial assets, the Company adopts the effective interest rate method and carries out subsequent measurement according to amortized cost. The profits or losses arising from amortization or impairment are included into the current profits and losses. ② Financial assets measured at fair value with changes included in other comprehensive income The Group measures financial assets at fair value through other comprehensive income if both of the following conditions are met: the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; 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. Interest income of such financial assets is recognised based on effective interest method. The Company measures these financial assets at fair value and their changes are included in other comprehensive income, but impairment loss or gain, exchange gain or loss and interest income calculated according to the effective interest rate method are included into the current profit and loss. In addition, the Company designates some non tradable equity instrument investments as financial assets measured at fair value with changes included in other comprehensive income. The Company shall record the relevant dividend income of such financial assets into the current profits and losses, and the change of fair value into other comprehensive income. When the financial asset is derecognized, the accumulated gains or losses previously included in other comprehensive income will be transferred from other comprehensive income to retained income and will not be included in current profits and losses. ③ Fair value through Profit and Loss Financial assets The Company classifies the above financial assets measured at amortized cost and financial

内容: assets measured at fair value with changes included in other comprehensive income into financial assets measured at fair value with changes included in current profits and losses. In addition, during initial recognition, in order to eliminate or significantly reduce accounting mismatch, the Company designated part of financial assets as financial assets measured at fair value with changes included in current profit and loss. For such financial assets, the Company adopts fair value for subsequent measurement, and the changes in fair value are included into the current profit and loss. (2) Classification, recognition and measurement of financial liabilities Financial liabilities upon initial recognition are classified as financial liabilities which are measured at fair value and whose changes are included in current profits and losses and other financial liabilities. For the financial liabilities measured at fair value with the changes included into the current profits and losses, the relevant transaction costs are directly included into the current profits and losses, and the relevant transaction costs of other financial liabilities are included in the initial recognition amount. ① Financial liabilities at fair value through profit or loss Financial liabilities measured at fair value with changes included in current profits and losses, which include transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities designated to be measured at fair value with changes included in current profits and losses at initial recognition. Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequently measured according to their fair values. Except for those related to hedge accounting, changes in fair values are included in current profits and losses. Financial liabilities designated to be measured at fair value with changes included in current profits and losses. Changes in the fair value of this liability caused by changes in the Company's own credit risk are included in other comprehensive income. When the liability is derecognized, the accumulated change in fair value caused by changes in its own credit risk included in other comprehensive income is transferred to retained earnings. Changes in fair value are accounted into current profits and losses. If the above-mentioned treatment of the impact of changes in the credit risk of these financial liabilities will cause or expand accounting mismatch in profits and losses, the Company will include all profits or losses of the financial liabilities (including the impact amount of changes in the credit risk of the enterprise itself) into the current profits and losses. ② Other financial liabilities Except for financial liabilities and financial guarantee contracts formed by the transfer of financial assets that do not meet the conditions for termination of recognition or continue to be involved in the transferred financial assets, other financial liabilities are classified as financial liabilities measured at amortized cost and subsequently measured at amortized cost. Gains or losses

内容: arising from termination of recognition or amortization are included in current profits and losses. (3) Basis of Confirmation and Calculation of financial instruments Financial assets shall be derecognized if they meet one of the following conditions: ① The termination of the contractual right to receive cash flow from the financial asset. ② The financial asset has been transferred, and almost all risks and rewards related to the ownership of the financial asset have been transferred to the transferee. ③ The financial asset has been transferred. Although the enterprise has neither transferred nor retained almost all risks and rewards in the ownership of the financial asset, it has given up its control over the financial asset. If the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of the financial assets, and does not give up the control over the financial assets, the relevant financial assets shall be recognized according to the extent of continuous involvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly. The degree of continuous involvement in the transferred financial assets refers to the risk level faced by the enterprise due to the change in the value of the financial assets. If the overall transfer of financial assets meets the conditions for termination of recognition, the difference between the book value of the transferred financial assets and the sum of the consideration received due to the transfer and the accumulated amount of changes in fair value originally included in other comprehensive income shall be included into the current profits and losses. If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of the transferred financial assets shall be apportioned according to its relative fair value between the derecognized part and the non derecognized part, and the difference between the sum of the consideration received due to the transfer and the accumulated change in fair value originally included in other comprehensive income that shall be apportioned to the derecognized part and the allocated aforesaid book amount shall be included into the current profits and losses. For financial assets sold by the Company with recourse, or for endorsement and transfer of held financial assets, it is necessary to determine whether almost all risks and rewards in the ownership of the financial assets have been transferred. If almost all risks and rewards in the ownership of the financial asset have been transferred to the transferee, the recognition of the financial asset shall be terminated. If almost all risks and rewards on the ownership of a financial asset are retained, the recognition of the financial asset shall not be terminated. If almost all risks and rewards related to the ownership of financial assets have not been transferred or retained, it shall continue to judge whether the enterprise retains control over the assets and carry out accounting treatment according to the principles mentioned in the preceding paragraphs. (4) Termination of recognition of financial liabilities

内容: If the current obligation of the financial liability (or part thereof) has been relieved, the Company terminates the recognition of the financial liability (or part thereof). The Company (the borrower) and the lender sign an agreement to replace the original financial liabilities by assuming new financial liabilities. If the contract terms of the new financial liabilities and the original financial liabilities are substantially different, the original financial liabilities shall be derecognized and a new financial liability shall be recognized at the same time. If the Company makes any substantial modification to the contract terms of the original financial liability (or part thereof), the original financial liability shall be derecognized and a new financial liability shall be recognized in accordance with the modified terms. If financial liabilities (or part thereof) are derecognized, the Company shall include the difference between its book value and the consideration paid (including transferred non-cash assets or liabilities assumed) into the current profits and losses. (5) Offset of financial assets and financial liabilities When the Company has the legal right to offset the recognized amount of financial assets and financial liabilities, and such legal right is currently enforceable, and the Company plans to settle the financial assets on a net basis or realize the financial assets and settle the financial liabilities at the same time, the financial assets and financial liabilities are listed in the balance sheet at a net amount after mutual offset. In addition, financial assets and financial liabilities shall be listed separately in the balance sheet and shall not be offset against each other. (6) The fair value determination method of financial assets and financial liabilities Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a liability in an orderly transaction on the measurement date. Where there is an active market for financial instruments, the Company adopts quotations in the active market to determine their fair values. Quoted price in active market refers to the price easily obtained from exchanges, brokers, industry associations, pricing service agencies, etc. on a regular basis, and represents the price of market transactions actually occurred in fair trading. If there is no active market for financial instruments, the Company uses evaluation techniques to determine their fair values. Evaluation techniques include reference to prices used in recent market transactions by parties familiar with the situation and willing to trade, reference to current fair values of other financial instruments that are substantially the same, discounting cash flow technique, option pricing model, etc. In valuation, the Company adopts valuation techniques that are applicable under current circumstances and are supported by sufficient available data and other information, selects input values that are consistent with the characteristics of assets or liabilities considered by market participants in transactions related to assets or liabilities, and gives priority to the use of relevant observable input values as

内容: much as possible. If the relevant observable input value cannot be obtained or it is not impracticable to obtain it, the non-input value shall be used. (7) Equity instruments Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets after deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity instruments by the Company are treated as changes in equity, and transaction costs related to equity transactions are deducted from equity. The Company does not recognize changes in the fair value of equity instruments. Dividends (including "interest" generated by instruments classified as equity instruments) distributed by the Company's equity instruments during their existence shall be treated as profit distribution. 10. Impairment of financial assets The financial assets of the Company that need to confirm the impairment loss are financial assets measured at amortized cost and debt instrument investment measured at fair value with changes included in other comprehensive income, mainly including notes receivable, accounts receivable, other receivables, debt investment, other debt investment, long-term receivables, etc. In addition, for some financial guarantee contracts, impairment reserves and credit impairment losses are also accrued in accordance with the accounting policies described in this part. (1) Recognition method of impairment provision On the basis of expected credit losses, the Company sets aside impairment reserves and recognizes credit impairment losses for the above items according to the applicable expected credit loss measurement method (general method or simplified method). Credit loss refers to the difference between all contractual cash flows receivable according to the contract and all cash flows expected to be collected by the Company discounted according to the original actual interest rate, i.e. the present value of all cash shortages. Among them, for the financial assets that have been purchased or incurred credit impairment, the Company discounts them according to the actual interest rate adjusted by credit. The general method of measuring expected credit loss refers to the Company's assessment of whether the credit risk of financial assets has increased significantly since the initial recognition on each balance sheet date. If the credit risk has increased significantly since the initial recognition, the Company will measure the loss reserve by an amount equivalent to the expected credit loss during the entire period. If the credit risk has not increased significantly since the initial recognition, the Company will measure the loss reserve according to the amount equivalent to the expected credit

内容: loss in the next 12 months. In assessing the expected credit loss, the Company takes into account all reasonable and evidence-based information, including forward-looking information. For financial instruments with low credit risk on the balance sheet date, the Company measures the loss reserve based on the expected credit loss amount within the next 12 months or the entire duration according to whether the credit risk has increased significantly since the initial recognition. (2) Criteria for judging whether credit risk has increased significantly since initial recognition If the default probability of a certain financial asset in the expected duration determined at the balance sheet date is significantly higher than the default probability in the expected duration determined at the time of initial recognition, it indicates that the credit risk of the financial asset is significantly increased. Except for special circumstances, the Company uses the change of default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to determine whether the credit risk has increased significantly since the initial recognition. Generally, if the overdue period is more than 90 days, the Company will consider that the credit risk of the financial instrument has increased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has not increased significantly since the initial recognition. The Company will consider the following factors when evaluating whether the credit risk has increased significantly 1） debtor; 2） Whether there is any significant adverse change in the regulatory, economic or Whether there is any significant change in the actual or expected operating results of the

内容: technological environment of the debtor; 3） Whether there is any significant change in the value of the collateral or the quality of

内容: the guarantee or credit enhancement provided by the third party, which are expected to reduce the economic motivation of the debtor's repayment according to the time limit stipulated in the contract or affect the probability of default; 4） Whether there is any significant change in the expected performance and repayment

内容: behavior of the debtor; 5） Whether there is any significant change in the Company's credit management methods

内容: for financial instruments, etc.

内容: On the balance sheet date, if the Company judges that the financial instrument has only low credit risk, the Company assumes that the credit risk of the financial instrument has not increased significantly since the initial recognition. If the default risk of a financial instrument is low, the borrower's ability to perform its contractual cash flow obligations in a short period of time is strong, and even if there are adverse changes in the economic situation and operating environment for a long period of time, it may not necessarily reduce the borrower's ability to perform its contractual cash obligations, then the financial instrument is considered to have low credit risk. (3) Judgment criteria for financial assets with credit impairment: When one or more events have an adverse impact on the expected future cash flow of a financial asset, the financial asset becomes a financial asset with credit impairment. The evidence of credit impairment of financial assets includes the following observable information: 1） 2） The issuer or debtor has major financial difficulties; The debtor violates the contract, such as default or overdue payment of interest or

内容: principal, etc.; 3） The creditor gives concessions that the debtor will not make under any other

内容: circumstances due to economic or contractual considerations related to the debtor's financial difficulties; 4） 5） The debtor is likely to go bankrupt or undergo other financial restructuring; The active market of the financial assets disappears due to the financial difficulties of

内容: the issuer or the debtor; 6） Purchase or generate a financial asset at a substantial discount, which reflects the fact

内容: that credit losses have occurred. Credit impairment of financial assets may be caused by the combined action of multiple events, but may not be caused by separately identifiable events. (4) Portfolio approach to evaluate expected credit risk based on portfolio The Company evaluates credit risks for financial assets with significantly different credit risks, such as: Accounts receivable with related parties. Receivables in dispute with the other party or involving litigation or arbitration. Receivables with obvious signs that the debtor is likely to be unable to perform the repayment obligation.

内容: In addition to the financial assets with individual credit risk assessment, the Company divides the financial assets into different groups based on the common risk characteristics. The common credit risk characteristics adopted by the Company include: Credit risk shall be assessed on the basis of the aging portfolio, the receivables portfolio between the final controlling party and its subordinate units, the public maintenance fund and house selling fund portfolio deposited in the housing provident fund management center, the deposit/margin portfolio, and the petty cash ledger portfolio formed by the employee loan of the unit. (5) Accounting treatment method for impairment of financial assets At the end of the period, the Company calculates the estimated credit losses of various financial assets. If the estimated credit losses are greater than the book amount of its current impairment reserve, the difference is recognized as impairment loss. If it is less than the carrying amount of the current impairment reserve, the difference is recognized as impairment gain. (6) Methods for determining the credit loss of various financial assets ①Notes receivable The Company measures the loss reserve for bills receivable according to the expected credit loss amount equivalent to the entire duration. Based on the credit risk characteristics of bills receivable, they are divided into different portfolios: Item Bank acceptance bills Commercial acceptance bill Basis for determining portfolio The acceptor is a bank with less credit risk According to the acceptor's credit risk classification, it should be the same as the "receivable" portfolio classification.

内容: ③ Accounts receivable and other receivables For receivables that do not contain significant financing components, the Company measures the loss reserve according to the expected credit loss amount equivalent to the entire duration. For receivables that contain significant financing components, the Company measures the loss reserve based on whether the credit risk has increased significantly since the initial recognition, using the amount of expected credit loss within the next 12 months or the entire duration. According to whether the credit risk of other receivables has increased significantly since the initial recognition, the Company measures impairment loss with an amount equivalent to the expected credit loss within the next 12 months or the entire duration. In addition to the accounts receivable and other receivables that individually assess credit risk, they are divided into different portfolios based on their credit risk characteristics: Item Basis for determining portfolio

内容: Item Portfolio 1 Portfolio 2 Portfolio 3 Portfolio 4 Portfolio 5

内容: Basis for determining portfolio Aging portfolio A portfolio of receivables between the ultimate controller and its subordinate units The portfolio of public maintenance funds and house sales funds deposited in the housing provident fund management center Deposit/margin portfolio The portfolio of reserve fund ledger formed by the Company's staff loan

内容: The accrual method of bad debt reserves for different portfolios: Item Aging portfolio Portfolio of receivables between the controlling party and its subordinate units Accrual method According to the accrual proportion corresponding to the aging period

内容: ultimate Referring to the historical credit loss experience, combined with the current The portfolio of public maintenance funds and house situation and the forecast of future sales funds deposited into the MPF Management Center economic conditions, the expected credit loss is calculated thr-ough the default risk Deposit/margin portfolio exposure and the expected credit loss rate The portfolio of reserve fund ledger formed by the within the next 12 months or the entire Company's staff loan. duration, and the expected credit loss rate of the portfolio is zero. a. In portfolio, the portfolio method of withdrawing bad debt reserves by aging analysis Aging Within 1 year (including 1 year, the same below) Among them: Within the credit period (within 3 months) Credit period~1 year 1-2 years 2-3years 3-4years 4-5years More than 5 years 0 2 5 20 50 80 100 0 2 5 20 50 80 100 0 2 5 20 50 80 100 Expected loss rate of Expected loss rate of Expected loss rate of notes receivable (%) accounts receivable other receivables (%) (%)

内容: b. In the portfolio, the description of the accrual method for accrual of bad debt reserves by other methods is given.

内容: Aging Accounts receivable between the final controlling party and its subordinate Public maintenance fund and house sale fund deposited into MPF Management Center Deposit/margin The reserve fund ledger formed by the Company's staff loan. 11. Inventory (1) Classification of inventory

内容: Expected loss rate Expected loss rate of Expected loss rate of notes accounts receivable of other receivables receivable (%) (%) (%) 0 0 0 0 0 0

内容: Inventories mainly include raw materials, work in progress, finished goods, in transit materials inventory goods, reserve tanker storage commissioned processing, and manufacturing consignment, etc.. (2) Valuation method for obtaining and issuing inventory Inventories are initially measured at cost. Inventory costs include purchase costs, processing costs and other expenditures. The actual cost of inventories upon delivery is calculated using the weighted average method. (3) Confirmation of net realizable value of inventories and method of accrual of falling price reserve Net Realizable Value refers to the amount of estimated selling price of inventories minus the estimated cost till completion, estimated expenses for selling activity and related taxes and fees in daily activities. When determining the net realizable value of inventories, solid evidence obtained shall be the basis, and the purpose of holding the inventories and the impact of events after the balance sheet date shall be considered. On the balance sheet date, inventories shall be measured at lower of cost and net realizable value. When the net realizable value is lower than the cost, the provision for inventory devaluation shall be accrued. The provision for inventory devaluation shall be accrued based on the difference between the cost of a single inventory item and its net realizable value. The provision for inventory devaluation of a large number of inventories with low unit prices shall be based on the type of inventory; for inventories related to the product range produced and sold in same region, having the same or similar end use or purpose, and difficult to be separated from other items for measurement, their provision for inventory devaluation can be combined and accrued.

内容: After the provision for inventory devaluation is accrued, if the factors cause the previous written-down inventory value have disappeared, and the situation results in the fact that the net realizable value of the inventories higher than the book value, the amount of the provision for inventory devaluation that has been accrued shall be reversed and included in the current period profit or loss. (4) The Company adopts perpetual inventory system as its inventory system. (5) Amortization method of low-value consumables and packaging materials Low-value consumables are amortized by one-off amortization method when they are received; packaging materials are amortized by one-off amortization method when they are received. 12. Held-for-sale assets and disposal group A non-current asset or disposal group is classified as held for sale when its carrying amount will be recovered principally through a sale transaction rather than through continuous use. The following conditions need to be simultaneously met to be classified as held for sale: a non-current asset or to-be-disposed portfolio can be sold immediately under the current conditions based on the practice of selling such asset or to-be-disposed portfolio in similar transactions; the Company has already decided on the sale plan and obtained confirmed purchase commitment; the sale is scheduled to be completed within one year. Among them, a Disposal Portfolio refers to a group of assets that will be disposed of as a whole through sale or other approaches in a transaction, and the liabilities directly associated with these assets transferred along with the assets in transaction. If the portfolio of assets or group of portfolios of assets is allocated goodwill acquired in business merger in accordance with Accounting Standards for Business Enterprises No. 8 - Asset Impairment, the Disposal Portfolio shall include the goodwill allocated to it. In the event that the book value of a non-current asset or to-be-disposed portfolio that has been designated as held-for-sale category is higher than the net amount of fair value less sales expenses when the non-current asset or to-be-disposed portfolio is initially measured or measured on the balance sheet date, the book value shall be to the net amount of fair value minus sales expenses, and the written-down amount shall be recognized as asset impairment loss and included in current period profit or loss. The provision for impairment loss of the held-for-sale asset shall be accrued. For a Disposal Portfolio, the confirmed impairment loss shall deduct the book value of the goodwill in the Disposal Portfolio, then deduct the book value of the non-current assets determined by the measurement on a pro-rata basis in accordance with the applicable Accounting Standards for Business Enterprises No. 42 held-for-sale non-current assets, Disposal Portfolio and Termination of Operations (hereinafter referred to as the “Guide for Held-For-Sale”). In the event of an increase of

内容: the book value of the held-for-sale Disposal Portfolio minus sales expenses on the subsequent the balance sheet date, the amount previously written down shall be recovered and be reversed within the mount of the asset impairment loss recognized in the non-current assets measured by the measurement “Guide for Held-For-Sale” after being classified as held for sale asset, the reversal amount shall be included in the current period profit or loss, and the book value of all non-current assets (except for goodwill) determined by the measurement on a pro-rata basis in accordance with the applicable “Guide for Held-For-Sale” shall be increased on a pro-rata basis. The book value of the goodwill that has been deducted and the impairment loss of the assets recognized before the classification of the held-for-sale non-current assets in accordance with the applicable “Guide for Held-For-Sale” shall not be reversed. In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio, there is no accrual or amortization for depreciation, and the interest from and other expenses from the liabilities in held-for-sale Disposal Portfolio shall still be recognized. When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category, non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category by the Company or the non-current asset will be removed from the Held-For-Sale Disposal Portfolio, and be measured based on one of the following two values, whichever is lower: (1) The book value before being classified as held-for-sale category adjusted based on the depreciation, amortization or impairment that should have be confirmed if it is not classified as held-for-sale category; (2) recoverable amount. 13. Long-term equity investment The long-term equity investment refers to in this part refers to the long-term equity investment that the Company has control, joint control or significant influence on the invested entity. The long-term equity investment of the Company that does not have control, joint control or significant impact on the investee shall be accounted as a financial asset measured at fair value with its changes included into the current profits and losses. Among them, if it is non-transactional, the Company may choose to designate it as a financial asset measured at fair value and its changes are included in the accounting of other comprehensive income at the time of initial recognition. For details of its accounting policies, please refer to Note Ⅲ, 9 “Financial Instruments". Joint control refers to the control that the Company shares with other party/parties for an arrangement in accordance with relevant agreements, and relevant activities of the arrangement can only be decided based on the consensus of all parties sharing the control rights before making a decision. Significant Influence refers to power of the Company to participate in the decision-making of the financial and operating policies of the investee, but the Company cannot control or jointly

内容: control the development of these policies with other parties. (1) Determination of investment cost For a long-term equity investment obtained from a combination of businesses under the same control, the apportioned share of the book value in the final controller's consolidated financial statements on the combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity investment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of the long-term equity investment and the cash paid, the non-cash assets transferred, and the book value of the debts assumed; if the capital reserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the equity securities are issued as merger consideration, the apportioned share of the book value in the final controller's consolidated financial statements on the combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity investment, and the total par value of the issued shares is taken as the share capital. The capital reserve shall be adjusted subject to the difference between the initial investment cost of the long-term equity investment and the total par value of the shares issued; if the capital reserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the equity of combined parties under the same control is obtained through multiple transactions and a business combination under the same control is formed finally, it shall be treated differentially based on whether it is a “package deal”: if it belongs to a “package deal”, all transactions will be treated as a transaction that obtains control. If it is not a “package deal”, the apportioned share of the book value in the final controller's consolidated financial statements on the combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity investment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of the long-term equity investment and the sum of the book value of long-term equity investment before combination date and the book value of the new consideration for the new share on the combination date. If the capital reserve is insufficient for offsetting, the retained earnings shall be adjusted. The equity investments that are held prior to the combination date and are recognized with equity recognized or as available-for-sale financial asset as other comprehensive income will not be given accounting treatment for the moment. For a long-term equity investment obtained from a combination of businesses not under the same control, the initial investment cost of the long-term equity investment shall be based on the combination cost on the purchase date. The combination cost includes the assets paid by purchaser, the liabilities incurred or assumed, and the sum of the fair value of issued equity securities. Where the equity of combined parties not under the same control is obtained through multiple transactions and a business combination under the same control is formed finally, it shall be treated differentially

内容: based on whether it is a “package deal”: if it belongs to a “package deal”, all transactions will be treated as a transaction that obtains control. If it is not a “package deal”, the initial investment cost of the long-term equity investment calculated by the cost method shall be calculated based on the sum of the book value of the equity investment in the original holder and the new investment cost. The original share holding that measured using equity method, the relevant other comprehensive income does temporarily not conduct accounting treatment. Intermediary expenses such as for auditing, legal services, assessment and other related expenses incurred by a combining party or a purchaser for business combination shall be recognized in current period profit or loss when incurred. The equity investments other than formed by business combination shall be initially measured at cost. The cost will be determined based on the following amount according to different methods of the acquisition of long-term equity investment: the purchase price in cash actually paid by the Company; the fair value of the equity securities issued by the Company, the value agreed in relevant investment contract or agreement; the fair value or original book value of the assets exchanged in non-monetary asset exchange transaction; the fair value of the long-term equity investment itself. Any expenses, taxes and other necessary expenses directly related to the acquisition of long-term equity investments shall also be included in the cost of investment. The cost of long-term equity investment for the additional investment that can exert significant influence on investee or implement joint control but does not constitute control shall be the sum of the fair value of the originally held equity investment recognized in accordance with the Accounting Standards for Business Enterprises No.. 22 – Recognition and Measurement of Financial Instruments and the cost for new investment. (2) Follow-up measurement and confirmation methods for profit and loss The Equity Method shall be used to account for long-term equity investments that have joint control over the invested entity (except for those constituting joint operators) or have significant impact on the invested entity. In addition, the company's financial statements use the Cost Method to account for long-term equity investments, which can control the long-term equity investment of the investee. a. Long-term equity investment based on Cost Method When accounting with Cost Method, long-term equity investment is priced at the initial investment cost, and the cost of the long-term equity investment is adjusted by adding or recovering the investment. Except for the actual payment at the time of obtaining investment or the cash dividends or profits included in the consideration but not yet issued, the current investment income shall be recognized according to the cash dividends or profits declared by the investee.

内容: b. Long-term equity investment accounted for by Equity Method When accounting with Equity Method, if the initial investment cost of a long-term equity investment is greater than the fair value share of the identifiable net assets of the investee when investing, and the initial investment cost of the long-term equity investment shall not be adjusted; if the initial investment cost is less than the fair value share of the identifiable net assets of the investee when investing, the difference shall be included in the current profit and loss, and the cost of the long-term equity investment shall be adjusted When accounting with Equity Method, the investment income and other comprehensive income are recognized separately according to the shares of the net profit or loss and other comprehensive income that should be enjoyed or shared, and the book value of the long-term equity investment should be adjusted at the same time. The book value of long-term equity investment is reduced accordingly by calculating the share that should be enjoyed according to the profit or cash dividend declared by the investee. The book value of long-term equity investment shall be adjusted and included in the capital reserve for other changes in the owner's rights and interests of the invested entity other than the net profit and loss, other comprehensive income and profit distribution. When confirming the share of the net profit and loss of the investee, the net profit of the investee shall be adjusted and confirmed on the basis of the fair value of the identifiable assets of the investee at the time of investment. If the accounting policies and periods adopted by the invested entity are inconsistent with the Company, the financial statements of the invested entity shall be adjusted in accordance with the accounting policies and periods of the Company, and the investment income and other comprehensive income shall be confirmed accordingly. For the transactions between the Company and the associates and joint ventures, the assets invested or sold do not constitute a business, and the unrealized gains and losses from internal transactions are offset against the portion of the Company that is attributable to the proportion of the shares, on this basis. investment profit and loss should be confirmed. However, the unrealized internal transaction losses incurred by the Company and the investee are not included in the impairment losses of the transferred assets. Where the assets invested by the Company into a joint venture or an associates constitute a business, if the investor obtains long-term equity investment but does not control, the fair value of the invested business shall be deemed as the initial investment cost of the new long-term equity investment, and the difference between the initial investment cost and the book value of the invested business is fully recognized in the current profits and losses. If the assets sold by the Company to a joint venture or an associate that constitute a business, the difference between the consideration value obtained and the book value of the business shall be fully recognized in the profits and losses of the current period. When confirming the net loss that incurred by the investee should be shared, the book value of

内容: the long-term equity investment and other long-term equity that substantially constitutes the net investment of the investee are reduced to zero. In addition, if the Company has an obligation to bear additional losses to the investee, the estimated liabilities shall be recognized according to the estimated obligations and included in the current investment losses. If the investee achieves net profit in the following period, the Company shall resume recognizing the share of income after making up for the unrecognized share of loss. For the long-term equity investment in the joint ventures and associates held by the Company for the first time before the implementation of the new accounting standards, if there is a debit balance of equity investments related to the investment, the current profits and losses shall be accounted for by the straight-line amortization of the original remaining period. c. Acquisition of Minority Equity In the preparation of the consolidated financial statements, if the difference between the long-term equity investment added by purchasing minority shares and the net assets share that should be continuously calculated by the subsidiary company from the purchase date (or the consolidation date) is calculated according to the proportion of newly added shares, the retained earnings shall be adjusted; and if the capital reserve is insufficient to offset, the retained earnings shall be adjusted. d. Disposal of long-term equity investment In the consolidated financial statements, the parent company partially of disposes of the long-term equity investment of the subsidiary without losing control, the difference of the corresponding net assets in the subsidiary between the disposal price and the disposal of the long-term equity investment is included in the shareholders' equity. it shall be treated in accordance with the relevant accounting policies described in “Notes on the preparation of consolidated financial statements” in Note Ⅲ.5 . For the disposal of long-term equity investment in other cases, the difference between the book value of the disposed equity and the actual acquisition price shall be included in the current profits and losses. If the long-term equity investment is accounted for by equity method, the remaining equity after disposal is still accounted for by equity method, when disposing, the other comprehensive income which were originally included in shareholder's rights and interests shall be accounted for on the same basis as the assets or liabilities directly disposed of by the investee. The owner's equity recognized as a result of changes in the owner's equity of the investee other than net profit or loss, other comprehensive income and profit distribution, it should be carried forward to the current profit and loss For the long-term equity investment accounted by Cost Method, the remaining equity is still

内容: accounted by Cost Method after disposal, other comprehensive income that recognized by equity method accounting or financial instrument recognition and measurement criteria accounting before obtaining control over the investee shall be accounted for on the same basis as the assets or liabilities directly disposed of by the investee, and shall be settled to the current profit and loss in proportion. Changes of the net assets of investee in the owner's equity other than net profit or loss, other comprehensive income and profit distribution 's that recognized by equity method shall be settled to the current profit and loss in proportion. Where the Company loses control over the investee due to disposal of part of its equity investment, when preparing individual financial statements, if the remaining equity after disposal can exercise joint control or exert significant influence on the investee, it shall be accounted for by equity method instead, and the remaining equity shall be adjusted by accounting by equity method when it is deemed to be acquired. If the remaining equity after disposal cannot be jointly controlled or exerts significant influence on the investee, it shall be accounted for according to the relevant provisions of the financial instrument recognition and measurement criteria, and the difference between the fair value and the book value on the date of loss of control. It is included in the current profit and loss. Before the Company obtains control over the investee, other comprehensive income recognized by equity method accounting or financial instrument recognition and measurement criteria is used to directly dispose of the relevant assets with the investee, accounting treatment based on the same basis as the investee directly disposes of related assets or liabilities when the control of the investee is lost, Accounting is treated on the same basis as the liabilities. Changes in the owner's equity other than net profit or loss, other comprehensive income and profit distribution of the investee's net assets recognized by the equity method are carried forward to the current profit or loss when the control of the investee is lost. Among them, the remaining equity after disposal is accounted for using the equity method. Where the remaining equity after disposal is accounted for by equity method, other comprehensive income and other owner's equity should be settled by proportion. If the remaining equity is accounted for using financial instrument recognition and measurement standard, all of other comprehensive income and other shareholder’s equity should be settled. If the Company loses its joint control or significant influence on the investee due to the disposal of part of the equity investment, the remaining equity after disposal shall be accounted for according to the financial instrument recognition and measurement criteria, and the difference between the fair value and the book value on the date of loss of joint control or significant influence is recognised in the current profit or loss. The other comprehensive income recognized in the original equity investment by the equity method is accounted for on the same basis as the investee's direct disposal of related assets or liabilities when the equity method is terminated, Owner's equity recognized as a

内容: result of changes in other owners' equity other than net profit or loss, other comprehensive income and profit distribution of the investee should be transferred to current investment income when terminating the equity method The Company disposes of the equity investment in the subsidiaries step by step through multiple transactions until the loss of control. If the above-mentioned transactions are part of a package transaction, the transactions are treated as a transaction dealing with the equity investment of the subsidiary and losing control. The difference between the book value of each long-term equity investment corresponding to the disposal price and the disposal of the equity before loss of control is first recognized as other comprehensive income, and when the control is lost, it is transferred to the current profit and loss of loss of control. 14．Investment Property Investment Property refers to property held for the purpose of earning rent or capital appreciation, or both, including land use rights that have been leased, land use rights that are held and prepared for transfer after appreciation, and buildings that have been rented. Investment property is initially measured at cost. The expenses related to investment property, if the economic benefits related to this asset are highly probable to flow into the company and the cost canbe measured reliably, then the expense will account for as the cost of investment property. Other expenses are accounted for in profit and loss when incurred. The Company adopts the cost model to conduct subsequent measurement of investment property and depreciation or amortization according to the policy consistent with the building or land use rights. For details of the impairment test method and impairment provision method of property, please refer to Note Ⅲ. 20 “Long-Term Asset Impairment”. When the self-use property or inventory is converted into investment property or investment property is converted into self-use property, the book value before conversion is used as the recorded value after conversion. When the use of investment property is changed to self-use, the investment property is converted into fixed assets or intangible assets from the date of change. When the use of self-use property changes to earn rent or capital appreciation, the fixed assets or intangible assets are converted into investment property from the date of change. In the case of investment property measured by the cost model when the conversion occurs, the book value before conversion is used as the entry value after conversion; if it is converted into investment property measured by the fair value model, the fair value of the conversion date is used as the entry value after conversion. When an investment real estate is disposed of, or permanently withdrawn from use and is not

内容: expected to obtain economic benefits from its disposal, the confirmation of the investment real estate shall be terminated. Disposal income from the sale, transfer, retirement or damage of investment properties is charged to the current profit and loss after deducting its book value and related taxes and fees. 15. Fixed Assets (1) Confirmation conditions for fixed assets Fixed Assets refer to tangible assets held for the purpose of producing goods, providing labor services, renting or operating management, and having a service life of more than one fiscal year. Fixed assets are recognized only when the economic benefits associated with them are likely to flow into the Company and their costs can be reliably measured. Fixed assets are initially measured at cost and taking into account the impact of projected abandonment costs. (2) Depreciation methods for various types of fixed assets Fixed assets are depreciated over their useful lives using the straight-line method from the month following the scheduled availability. The depreciation period, estimated net residual value rate and annual depreciation rate of each category of fixed assets are as follows: Category Buildings uipElectronic eqment Machinery equipment Transport facility Office equipment Other equipment Depreciation Method straight-line depreciation straight-line depreciation straight-line depreciation straight-line depreciation straight-line depreciation straight-line depreciation Depreciation period (Year) 8-50 3-10 5-28 5-10 3-10 5-28 Net esidual Annual depreciation rate(%) rate (%) 5 4、5 4、5 4、5 4、5 4、5 1.90— 11.88 9.50—32.00 3.39—19.20 9.50—19.20 9.50—32.00 3.39—19.20

内容: The estimated net residual value refers to the expected state after the estimated useful life of the fixed assets has expired and is at the end of its useful life. The amount currently obtained by the Company from the disposal of the assets after deducting the estimated disposal expenses. (3) Impairment test method and Impairment provision method for fixed assets For details of Impairment test method and impairment provision method for fixed assets, please refer to Note Ⅲ. 21 “Long-Term Asset Impairment”.

内容: (4) Recognition basis and valuation method of fixed assets acquired by finance lease A finance lease is a lease that transfers substantially all the risks and rewards associated with ownership of an asset, and its ownership may or may not be transferred. If it is reasonable to determine the ownership of the leased asset at the expiration of the lease term, the depreciation shall be calculated within the useful life of the leased asset; If it is not reasonable to determine the ownership of the leased asset at the expiration of the lease term, depreciation shall be calculated within a relatively short period of the lease term and the service life of the leased assets. (5) Others The subsequent expenses related to fixed assets, if the economic benefits related to the fixed assets are likely to flow in and their costs can be reliably measured, are included in the cost of fixed assets and the book value of the replaced part should be terminated. The subsequent expenditures other than mentioned as above are recognized in profit or loss in the period in which they are incurred. The fixed asset is derecognized when the fixed asset is in disposal or is not expected to generate economic benefits by using or disposal. The difference between the disposal income from the sale, transfer, retirement or damage of the fixed assets less the carrying amount and related taxes is recognized in profit or loss for the current period. The Company reviews the useful life, estimated net residual value and depreciation method of fixed assets at least at the end of the year, and changes as an accounting estimate if changes occur. 16. Construction in progress The cost of construction in progress is determined based on actual project expenditure, including various project expenditures incurred during the construction period, capitalized borrowing costs before the project reaches the expected usable status, and other related expenses. Construction in progress is carried forward to fixed assets when it is ready for its intended use. For details of the impairment test method and impairment provision method for construction in progress, please refer to Note Ⅲ. 21 “Long-Term Asset Impairment”. 17. Borrowing Costs Borrowing costs include interest on borrowings, amortization of discounts or premiums, ancillary expenses, and exchange differences arising from foreign currency borrowings. Borrowing costs directly attributable to the acquisition, construction or production of assets eligible for capitalization, capitalization is began when asset expenditures have occurred, borrowing costs have occurred, and the acquisition, construction or production activities necessary to bring the assets to the intended usable or saleable state have begun. And capitalization is stopped when the assets under

内容: construction or production that meet the capitalization conditions are ready for their intended use or saleable status. The remaining borrowing costs are recognized as an expense in the period in which they are incurred. The interest expenses actually incurred in the current period of special borrowings shall be capitalized after subtracting the interest income from the unused borrowing funds deposited into the bank or the investment income obtained from the temporary investment. For the general borrowings, according to the accumulated asset expenditures exceed the special borrowings. The capitalization amount is determined by multiplying the weighted average of which accumulated asset expenditure exceeds the asset expenditure of the special borrowing portion by the capitalization rate of the general borrowings used. The capitalization rate is determined based on the weighted average interest rate of general borrowings. During the capitalization period, the exchange differences of foreign currency special borrowings are all capitalized; the exchange differences of foreign currency general borrowings are included in the current profit and loss. Assets eligible for capitalization refer to assets such as fixed assets, investment property and inventories that require a substantial period of acquisition, construction or production activities to achieve the intended use or sale status. If the assets eligible for capitalization are interrupted abnormally during the acquisition, construction or production process and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended until the acquisition, construction or production of the assets resumes. 18. Right-of-use assets (applicable from 1 January 2021) Right-of-use assets of the Group mainly consist of buildings, power generation and transmission equipment, plant, machinery and equipment, motor vehicles, furniture and fixtures and others. At the commencement date of the lease, the Group recognises the right to use the leased assets during the lease term as a right-of-use asset, including: the initial measurement amount of the lease liability; the amount of lease payment paid on or before the beginning of the lease term, the amount of lease incentive already enjoyed shall be deducted if there is a lease incentive; initial direct expenses incurred by the lessee; the costs that the lessee is expected to incur in order to dismantle and remove the leased asset, restore the leased asset to the site or restore the leased asset to the state agreed upon in the lease terms. The right-of-use assets are depreciated on a straight-line basis subsequently by the Group. If the Group is reasonably certain that the ownership of the underlying asset will be transferred to the Group at the end of the lease term, the Group depreciates the asset from the commencement date to the end of the useful life of the asset. Otherwise, the Group

内容: depreciates the assets from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. The Group remeasures the lease liability at the present value of the revised lease payments and adjusts the carrying amount of the right-of-use assets accordingly, when the carrying amount of the right-of-use asset is reduced to zero, and there is a further reduction in the measurement of the lease liability, the Group recognises the remaining amount of the remeasurement in profit or loss for the current period 19. Intangible assets (1) Intangible assets Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by the Company. Intangible assets are initially measured at cost. Expenditure related to intangible assets is included in the cost of intangible assets if the relevant economic benefits are likely to flow to the Company and its costs can be measured reliably. However, the intangible assets acquired through business combination not involving enterprises under common control should be measured at fair value separately as intangible assets when their fair values can be reliably measured. The acquired land use rights are usually accounted for as intangible assets. The related land use rights and building construction costs of self-developed and constructed buildings are accounted for as intangible assets and fixed assets, respectively. In the case of purchased houses and buildings, the relevant price is distributed between the land use rights and the buildings. If it is difficult to allocate them reasonably, all of them are treated as fixed assets. Since the intangible assets with limited useful life are available for use, the original value minus the estimated net residual value and the accumulated amount of impairment reserve shall be amortized by the straight-line method during their expected service life. Intangible assets with uncertain service life shall not be amortized. Among them, the useful life and amortization method of intellectual property are as follows: Item Trademark Amortization (year) 20 period Amortization method Straight-line method

内容: At the end of the period, the useful life and amortization methods of intangible assets with limited useful life are reviewed, and if any change occurs, it is treated as a change of accounting estimate. In addition, the useful life of intangible assets with uncertain service life is also reviewed.

内容: If there is evidence that the period for which the intangible assets bring economic benefits to the enterprise is foreseeable, the useful life of intangible assets is estimated and amortized according to the amortization policy of intangible assets with limited useful life (2) Research and development expenditure The company's expenditure for internal research and development project is divided into research phase expenditure and development phase expenditure. Expenditures for the research phase shall be recognized in profit or loss when incurred. Expenditures for the development phase that meet the following conditions shall be recognized as intangible assets, and expenditures in the development stage that fail to meet the following conditions are included in current profit and loss: a. It is technically feasible to complete the intangible asset to enable it to be used or sold. b. The intent to complete the intangible asset and use or sell it; c. The way in which intangible assets generate economic benefits, including the ability to prove that the products produced from the intangible assets having a market or the intangible assets having a market, and the intangible assets will be used internally, which can prove its usefulness; d. sufficient technical, financial resources and other resources for supporting the development of the intangible assets and the ability to use or sell the intangible assets. e. Expenditure attributable to the development phase of the intangible asset can be reliably measured. If it is impossible to distinguish the expenditures between research phase and development phase, all research and development expenditures incurred will be included in the current profit and loss. (3) Impairment test method and Impairment provision method for intangible assets For details of the impairment test method and impairment provision method, please refer to Note Ⅲ. 21 “Long-Term Asset Impairment”. 20．Long-term Deferred Expenses The long-term deferred expenses are all expenses that have occurred but shall be borne by the reporting period and subsequent periods with amortization period of more than one year. The company's long-term deferred expenses mainly include lease of land use right and renovation costs of factory building. Long-term deferred expenses are amortized on a straight-line basis over the estimated benefit period. 21. Long-term assets impairment For fixed assets, construction in progress, intangible assets with limited useful life, investment

内容: property measured by cost model, and non-current non-financial assets such as long-term equity investments in subsidiaries, joint ventures and associates, the Company determines whether there is any indication of impairment on the balance sheet date. If there is any indication of impairment, the recoverable amount is estimated and the impairment test is carried out. Goodwill, intangible assets with uncertain service life and intangible assets that not yet ready for use are tested for impairment annually, regardless of whether there is any indication of impairment. If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value, the impairment provision is made based on the difference and is included in the impairment loss. The recoverable amount is the higher of the fair value of the asset less the disposal expense and the present value of the estimated future cash flow of the asset. The fair value of assets is determined according to the sale agreement price in a fair transaction. If there is no sales agreement but there is an active market for the asset, the fair value is determined according to the buyer's bid for the asset; if there is neither sales agreement nor active market for assets, the fair value of assets shall be estimated based on the best information available. Asset disposal expenses include legal fee, taxes, transportation expenses and direct expenses incurred to make assets saleable. The present value of the estimated future cash flow of an asset is determined by the appropriate discount rate discounting and the estimated future cash flow generated by the asset during its continuous use and final disposal. The asset impairment provision is calculated and confirmed based on individual assets. If it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset is determined by the asset group which the asset belongs to. An asset group is the smallest portfolio of assets that can generate cash inflows independently. The book value of the goodwill listed separately in the financial statements is amortized into asset groups or portfolios that are expected to benefit from the synergies of business combinations when impairment tests are conducted. The test results show that the recoverable amount of the asset group or portfolio containing the assessed goodwill is lower than its book value, the corresponding impairment losses should be confirmed. The amount of impairment loss is first deducted from the book value of the goodwill amortized to the asset group or portfolio, and then deducted proportionally from the book value of other assets according to the proportion of the book value of assets other than goodwill in the asset group or portfolio. Once the above asset impairment loss is confirmed, it will not be reversed to the part where the value is restored in the future period. 22. Employee Compensation The Company's employee compensation mainly includes short-term employee remuneration, Post-employment Benefits, Termination Benefits and benefits for other long-term employee. Among

内容: them: Short-term employees remuneration mainly includes wages, bonuses, allowances and subsidies, employee welfare fees, medical insurance premiums, maternity insurance premiums, work injury insurance premiums, housing fund, labor union funds, employee education funds, and non-monetary benefits. The Company recognizes the actual short-term employee's remuneration as a liability in the accounting period in which employees provide services to the Company and recognizes them in profit or loss or related asset costs. Non-monetary benefits are measured at fair value. Post-employment Benefits mainly include basic retirement security, unemployment insurance, and annuities. The Post-employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit Plan. If a Defined Contribution Plan is adopted, the corresponding amount of the deposit shall be included in the relevant asset cost or current profit and loss as incurred. (1) The Defined Contribution Plan is recognized as a liability based on a fixed fee paid to an independent fund and is included in the current profit and loss or related asset costs; (2) The Defined Benefit Plan is accounted for using the expected cumulative benefits unit method Specifically, the Company will convert the welfare obligation arising from the Defined Benefit Plan into the final value of the departure time according to the formula determined by the expected cumulative benefits unit method; then it is attributed to the employee's in-service period and is included in the current profit and loss or related asset cost. If the labor relationship with the employee is terminated before the employee's labor contract expires, or if the employee is encouraged to accept the reduction voluntarily, when cannot withdrawing unilaterally the dismissal benefits provided by the termination of the labor relationship plan or the reduction proposal, and when confirming the costs associated with the restructuring involving the payment of the dismissal benefits, whichever is earlier, the Company will recognize the employee compensation liabilities arising from the dismissal benefits, and included in the current profit and loss. However, if the dismissal benefits are not expected to be fully paid within 12 months after the end of annual reporting period, they shall be treated in accordance with other long-term employee compensations. The internal retirement plan for employees shall be treated in the same way as the above-mentioned dismissal benefits. The company will pay the internal retired staff the salary and the social insurance premiums from the employee's lay-off to normal retirement, and will include in the current profit and loss (dismissal benefits) when the conditions of the estimated liabilities are met. If the other long-term employee benefits provided by the Company to the employees are in line with the Defined Contribution Plan, they shall be accounted for Defined Contribution Plan, and

内容: otherwise accounted for the Defined Benefit Plan. 23. Lease liabilities At the commencement date of the lease period, the Group recognises the present value of outstanding lease payments as a lease liability, excluding short-term leases and leases of low-value assets. The Group adopts the interest rate implicit in the lease as the discount rate to calculate the present value of the lease payments. Where the interest rate implicit in the lease cannot be determined, the incremental borrowing rate of the lessee shall be used as the discount rate. The Group calculates the interest expense of the lease liability during each period of the lease term in accordance with the constant periodic rate of interest and recognises it in profit and loss for the current period, except otherwise stipulated in the cost of related assets. The variable lease payment that is not included in the measurement of lease liabilities is recognised in the profit and loss for the current period when it actually occurs, except that it is otherwise stipulated to be included in the cost of relevant assets. After a lease term commences, when there is a change in the amount of in-substance fixed lease payments, a change in the amounts expected to be payable under a residual value guarantee, a change in future lease payments resulting from a change in an index or a rate used to determine those payments, a change in assessment of an option to purchase the underlying asset, renew or terminate the lease, or change in the actual exercise of an option, the Group remeasures the carrying amount of the lease liability by discounting the revised lease payments 24. Estimated liabilities When the obligations related to the contingencies meet the following conditions, they are recognized as contingent liabilities: (1) The obligation is the present obligation assumed by the Company; (2) The performance of this obligation is likely to result in the outflow of economic benefits; (3) The amount of the obligation can be reliably measured. On the balance sheet date, taking into account factors such as risks, uncertainties and time value of money related to contingencies, the estimated liabilities are measured in accordance with the best estimate of the expenditure required to perform the relevant current obligations. If all or part of the expenses required to discharge the estimated liabilities are expected to be compensated by the third party, the compensation amount will be separately recognized as an asset when it is basically determined to be received, and the confirmed compensation amount does not exceed the book value of the estimated liabilities. (1) Loss Contract A loss contract is a contract in which the cost of fulfilling a contractual obligation will

内容: inevitably occur more than the expected economic benefit. If the contract to be executed becomes a loss contract, and the obligation arising from the loss contract satisfies the conditions for the recognition of the above-mentioned estimated liabilities, the portion of the contract's estimated loss that exceeds the recognized impairment loss (if any) of the contracted asset is recognized as the estimated liability. (2) Restructuring Obligations For restructuring plans that are detailed, formal, and have been announced to the public, the amount of the estimated liabilities are determined based on the direct expenses related to the reorganization, subject to the recognition conditions of the aforementioned estimated liabilities. For the restructuring obligation to the part of business sold, the obligation related to the reorganization is confirmed only when the company promises to sell part of the business (that is, when the binding sale agreement is signed). 25. Share-based Payments (1) Accounting Treatment of Share-based Payments A share-based payment is a transaction that grants an equity instrument or assumes a liability determined based on an equity instrument in order to obtain services from employees or other parties. Share-based Payments include equity-settled share payment and cash-settled share payment. a) Equity-settled Share Payment The equity-settled share payment in exchange for the services from employee is measured at the fair value of the granting of employees' equity instruments at the grant date. If the fair value is vested in the completion of the waiting period of service or the fulfillment of the required performance conditions, during the waiting period, the amount of the fair value is calculated by the straight-line method into the relevant costs or expenses based on the best estimate of the number of vesting equity instruments; Or If the vesting right is granted immediately after the grant, the calculation of the amount of the fair value is included in the relevant cost or expense on the grant date, and the capital reserve is increased accordingly. On each balance sheet date during the waiting period, the Company makes the best estimate based on the latest information on the changes in the number of employees with vesting rights and corrects the number of equity instruments that are expected to be vested. The impact of the above estimates shall be included in the current related costs or expenses, and the capital reserve is adjusted accordingly. In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of other parties' services can be reliably measured, the fair value of other services shall be

内容: measured at the fair value on the date of acquisition; If the fair value of the other party's services cannot be measured reliably, the fair value shall be measured at the fair value of the equity instrument at the date the service is acquired, and is included in the relevant cost or expense, which increases the shareholders' equity accordingly. b) Cash-settled Share Payment The cash-settled share payment is measured at the fair value of the liabilities determined by the Company based on shares or other equity instruments. If the vesting right is available immediately after the grant, the relevant costs or expenses shall be included on the date of grant, and the liabilities shall be increased accordingly; if vesting right is available after the service is completed within the waiting period or met the required performance conditions, based on the best estimate of the vesting rights on each balance sheet date of the waiting period, according to the fair value of the liabilities assumed by the company, the services obtained in the current period are included in the cost or expense, and the liabilities are increased accordingly. The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before the settlement of the relevant liabilities, and the changes shall be recorded in the profit and loss of the current period. (2) Relevant Accounting Treatment of share-based payment plan’s modification and termination When the Company modifies the share-based payment plan, if the modification increases the fair value of the equity instruments granted, the increase in the fair value of the equity instruments is recognized accordingly. The increase in the fair value of equity instruments refers to the difference between the fair value of the equity instruments before and after the modification. If the modification reduces the total fair value of the share-based payment or adopts other methods that are not conducive to the employee, the service obtained shall continue to be accounted for, as if the change has never occurred, unless the Company cancels some or all of equity instruments. During the waiting period, if the granted equity instrument is cancelled, the Company will cancel the granted equity instrument as an accelerated exercise, and the amount to be recognized in the remaining waiting period will be immediately included in the current profit and loss, and the capital reserve will be recognized. If the employee or other party can choose to meet the non-vesting conditions but fails to meet the waiting period, the Company will treat it as a cancellation of the equity instrument. (3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders or Actual Controllers In respect of the share-based payment transaction between the company and the shareholders or actual controllers of the company, If one of the settlement enterprise and the service receiving

内容: enterprise is in the company and the other is outside the company, it shall be accounted for in the consolidated financial statements of the company according to the following provisions: a.) If the settlement enterprise settles with its own equity instrument, the share-based payment transaction shall be treated as equity-settled share-based payment; otherwise, it shall be treated as a cash-settled share-based payment. If the settlement enterprise is an investor of a serviced enterprise, it shall be recognized as the long-term equity investment of the serviced enterprise according to the fair value of the equity instrument at the grant date or the fair value of the liability to be assumed, and the capital reserve (other capital reserve) or liabilities shall be recognized. b.) If the serviced enterprise has no settlement obligation or grants its own employees the equity instruments, the share payment transaction shall be treated as equity-settled share payment; if the serviced enterprise has settlement obligation and grants its employees other than its own equity instruments, the share payment transaction shall be treated as a cash-settled share payment. For the share based payment incurred between companies within the group, if the serviced enterprise and settlememt enterprise are not the same, then the payment should be recpgnized and measured in their individual financial statements, they should be accounted for using the above principles 26. Revenue The company's operating income mainly includes income from selling goods, income from providing services, royalty income, interest income, etc. When the company signs a contract, it evaluates the contract, identifies the individual performance obligations contained in the contract, and determines whether the individual performance obligations are performed within a certain period of time or at a certain point of time. When the company has fulfilled all the performance obligations in the contract, the revenue shall be recognized respectively according to the transaction price apportioned to the performance obligations. (1) Revenue recognition for fulfilling performance obligation at a certain time point Generally, the company recognizes the revenue from the sales of goods based on the transaction price apportioned to the single performance obligation when the customer obtains the control right of the relevant goods on the basis of comprehensively considering the following factors: the company has the right to receive payment in respect of the goods or services currently, that is, the customer has the obligation to pay for the goods currently; the company has transferred the legal ownership of the goods to the customer, that is, the customer has the legal ownership of the goods; The Company has transferred the physical goods of the commodity to the Customer or the Customer has obtained the

内容: qualification of physical goods right of the commodity. The consideration obtained by the Company in respect of the transfer of the commodity is likely to be recovered; Other indications that the customer has taken control of the commodity. The specific principles of the company's sales revenue recognition are as follows: when the commodity have been delivered to the customer and signed by the customer for confirmation, or the ownership certificate of the commodity has been delivered to the customer, the sales revenue is recognized when the company has received the payment or obtained the evidence of payment. (2) Revenue recognition for fulfilling performance obligation within a certain period of time For the performance obligations performed in a certain period of time, such as the services provided, the company adopts the output method or input method to determine the appropriate performance progress, and recognizes the revenue according to the performance progress in that period of time. On the balance sheet date, the company shall recognize the current income according to the total transaction price of the contract multiplied by the progress of performance minus the accumulated recognized income. If one of the following conditions is satisfied, it is regarded as the performance obligation performed during a certain period of time: the Customer obtains and consumes the economic benefits arising from the performance of the Company at the same time of the performance of the Company; Customers can control the goods under construction during the performance of the contract; The products produced by the Company during the performance of the Contract are of irreplaceable use, and the Company shall be entitled to receive payment for the accumulated part of the completed performance so far during the whole term of the Contract. Otherwise, the Company recognizes revenue at the point when the Customer acquires control of the relevant goods or services. The Company's rights to receive consideration for goods or services transferred to the Customer (and such rights depend on factors other than the time passage) are presented as contractual assets, which are subject to impairment on the basis of expected credit losses. The company's right to collect consideration from customers unconditionally (only depending on the passage of time) is listed as receivables. The obligation of the Company to transfer goods or services to customers for which consideration has been received or receivable is presented as a contractual liability. 27. Contract cost

内容: 1. Contract performance cost The cost incurred by the company for the performance of the contract, which does not fall within the scope of other accounting standards for business enterprises other than the income standard and meets the following conditions at the same time, is recognized as an asset as the contract performance cost: (1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costs explicitly borne by the customer and other costs incurred solely as a result of the contract; (2) The cost increases the company's resources for fulfilling its performance obligations in the future; (3) The cost is expected to be recovered. The assets are presented in inventory or other non-current assets according to whether the amortization period has exceeded one normal operating cycle at the time of its initial recognition. 2. Contract acquisition cost If the incremental cost incurred by the company to obtain the contract is expected to be recovered, it shall be recognized as an asset as the contract acquisition cost. Incremental cost refers to the cost that will not occur if the company does not obtain the contract. 3. Amortization of contract costs The assets related to the contract cost mentioned above shall be amortized at the time of performance of the obligation or according to the performance progress on the same basis as the income recognition of the commodity or service related to the asset and shall be recorded into the current profit and loss. 4. Impairment of contract cost If the book value of the above assets related to the contract cost is higher than the difference between the residual consideration expected to be obtained by the company due to the transfer of the goods related to the assets and the estimated cost to be incurred for the transfer of the relevant goods, the excess part shall be set aside as an impairment provision and recognized as an impairment loss of the asset.

内容: 28. Government grants Government grant refers to the company's acquisition of monetary and non-monetary assets from the government free of charge, excluding the capital invested by the government as an investor and enjoying the corresponding owner's rights and interests. Government grants include assets-related grants and revenue-related grants. The company defines the government grant obtained for the purchase and construction of long-term assets or for the formation of long-term assets in other ways as the government grant related to assets; the remaining government grant is defined as the government grant related to income. If the object of grants is not specified in government documents, the grants shall be divided into income-related government grants and assets-related government grants in the following ways: (1) If the government document clarifies the specific project for which the grant is targeted, the proportion of the expenditure amount of the assets to be formed and the amount of the expenditures included in the expenses in the budget of the specific project are divided, and the proportion of grant division needs to be reviewed on each balance sheet day and changed if necessary. (2) In government documents, if the purpose is expressed only in general terms and no specific project is specified, the grant shall be regarded as a government grant related to the income. Where a government grant is a monetary asset, it shall be measured according to the amount received or receivable. If the government grants are non-monetary assets, they shall be measured at the fair value; if the fair value cannot be obtained reliably, they shall be measured at the nominal amount. Government grants measured in nominal amounts shall be recognized directly in current profits and losses. The Company usually confirms and measures the government grant according to the amount when it is actually received. However, if there is conclusive evidence at the end of the period that the relevant conditions stipulated in the financial support policy can be met and the financial support funds are expected to be received, it shall be measured according to the amount receivable. Government grants measured in accordance with the amount receivable shall meet the following conditions at the same time: (1) The amount of the subvention receivable has been confirmed by the authorized government departments, or can be reasonably calculated according to the relevant provisions of the formally issued financial fund management measures, and there is no significant uncertainty in the amount expected; (2) According to the "Regulations on the Openness of Government Information" that the local financial department officially released and in accordance with the provisions of the "Regulations on the Openness of Government Information," the financial support project and its financial fund management measures should be inclusive (any eligible enterprise can apply for them), rather than being specifically tailored to specific companies; (3) The relevant grant approval has clearly promised the payment period, and the allocation of the

内容: payment is guaranteed by the corresponding budget, so it can be reasonably ensure that it can be received within the prescribed time limit; (4) Other relevant conditions (if any) to be met in accordance with the specific circumstances of the Company and the grants. Government grants related to assets are recognized as deferred earnings and are divided into current profits and losses in a reasonable and systematic way during the service life of the assets concerned. The government grants related to revenue, which are used to compensate for the related cost or loss in the subsequent period, shall be recognized as deferred income, and shall be recognized in profit or loss in the period in which the related costs or losses are recognized; if it is used to compensate the related costs or losses that has occurred, it shall be directly recognized in the current profit and loss. It includes government grants related to both assets and income, and different parts are separately classified for accounting treatment; if it is difficult to distinguish, the whole is classified as government grants related to income. Government grants related to the daily activities of the Company shall be included in other income or cost deductions according to the nature of the economic business; government subsidies unrelated to daily activities shall be included in the non-operating revenues and expenses. When the recognized government grants need to be returned, if there are relevant deferred earnings balances, the book balance of related deferred earnings shall be deducted, and the excess part shall be included in the current profits and losses or the book value of assets shall be adjusted, otherwise, the book value of assets shall be directly included in the current profits and losses. The company will obtain preferential policy loans discount in accordance with the finance will be allocated to the loan bank discount funds and the finance will be directly allocated to the company discount funds in two cases: (1) If the finance department allocates the discount interest funds to the lending bank, and the lending bank provides the loan to the Company at the policy preferential interest rate, the Company chooses to conduct accounting treatment according to the following methods: the loan amount actually received shall be taken as the entry value of the loan, and the relevant borrowing costs shall be calculated in accordance with the loan principal and the policy preferential interest rate. (2) If the finance allocates the discount funds directly to the company, the company will offset the corresponding discount against the relevant borrowing costs. 29. Deferred Income Tax Assets / Deferred Income Tax Liabilities (1) Current Income Tax On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previous periods are measured by the expected amount of income tax payable (or returned) in accordance with the provisions of the Tax Law. The amount of taxable income on which current

内容: income tax expenses are calculated is based on the corresponding adjustment of pre-tax accounting profits in the reporting period in accordance with the relevant tax laws. (2) Deferred Income Tax Assets and Deferred Income Tax Liabilities The difference between the book value of certain assets and liabilities and their tax basis, and the temporary difference between the book value of items that are not recognized as assets and liabilities but which can be determined as their tax basis according to the tax law, are confirmed by the balance sheet liability method. Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss), relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences related to investments in subsidiaries, associates and joint ventures, if the Company is able to control the turnaround time of temporary differences, and the temporary difference is unlikely to be reversed in the foreseeable future, the related deferred income tax liabilities shall not be recognized. Except for the above exceptions, the Company recognizes all other deferred income tax liabilities arising from taxable temporary differences. Taxable temporary differences which related to the initial recognition of an asset or liability arising from a transaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss), relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences related to investments in subsidiaries, associates and joint ventures, if the temporary difference is unlikely to be reversed in the foreseeable future, or the amount of taxable income used to offset the temporary difference is unlikely to be obtained in the future, the deferred income tax assets concerned shall not be recognized. Except for the above exceptions, the Company recognizes other deferred income tax assets that can offset temporary differences, subject to the amount of taxable income that is likely to be obtained to offset temporary differences. For deductible losses and tax credits that can be carried forward in subsequent years, the corresponding deferred income tax assets are recognized to the extent that it is probable that the future taxable income shall be used to offset the deductible losses and tax credits. On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be measured at the applicable tax rates in the period in which the related assets are recovered or the related liabilities are recovered in accordance with the tax laws. On the balance sheet date, the book value of deferred income tax assets is reviewed. and the book value of deferred income tax assets is written down if it is likely that sufficient taxable income

内容: will not be available to offset the benefits of deferred income tax assets in the future. When it is possible to obtain sufficient taxable income, the amount written down shall be reversed. (3) Income tax expenses Income tax expenses include current income tax and deferred income tax. In addition to recognizing that the current income tax and deferred income tax related to other transactions and matters directly included in shareholder's rights and interests shall be recognized in other comprehensive income or shareholder's rights and interests, and the book value of adjusted goodwill from deferred income tax resulting from the merger of enterprises, the other current income tax and deferred income tax expenses or gains shall be recognized in profit or loss for the current period. (4) Offset of Income Tax When the company has legal rights to settle on a net basis, and intends to settle on a net basis or acquire assets and pay off liabilities at the same time, the company's current income tax assets and current income tax liabilities shall be presented on a net basis after the offset. When it has the legal right to settle current income tax assets and current income tax liabilities on a net basis, and deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax administration department on the same tax payer or to different tax payers, but in the future, during each important period of deferred income tax assets and liabilities being reversed, the taxpayer involved intends to settle the current income tax assets and liabilities on a net basis, or acquire assets and pay off liabilities simultaneously, the deferred the income tax assets and deferred income tax liabilities of the Company shall be presented on a net basis after offset. 30. Lease Finance lease is a lease that essentially transfers all risks and rewards related to the ownership of assets. Its ownership may or may not be transferred eventually. Leases other than finance leases are operating leases. (1) The Company records operating lease business as a lessee. Rental expenses for operating leases shall be included in the related asset costs or current profits and losses in the straight-line method during each period of the lease period. The initial direct costs shall be included in the current profits and losses. Contingent rentals shall be recognized in profits and losses when incurred. (2) The company records operating leasie business as a lessor The rental income of operating lease shall be recognized as current profit and loss according to the straight-line method during each period of the lease period. The larger initial direct expenses are

内容: capitalized when occurring, and the profits and losses of the current period shall be recorded in stages on the same basis as the recognized rental income during the whole lease period; the smaller initial direct expenses shall be recorded in the profits and losses of the current period when occurring. Contingent rentals shall be included in current profits and losses when actually occurring. (3) The company records finane lease business as a lessee At the beginning of the lease period, the lower of the fair value of the leased assets and the present value of the minimum lease payment on the lease start date is regarded as the entry value of the leased assets, and the lowest lease payment shall be regarded as the entry value of the long-term payables, and the difference shall be regarded as the unrecognized financing cost. In addition, the initial direct costs attributable to the lease project shall also be included in the value of the leased assets when they occur during the lease negotiation and the signing of the lease contract. The balance of the minimum lease payment after deducting the unrecognized financing costs shall be presented as long-term liabilities and long-term liabilities due within one year, respectively. The unrecognized financing cost shall be calculated by the real interest rate method during the lease period. Contingent rentals shall be included in current profits and losses when actually occurring. (4) The company records financie lease business as a lessor At the beginning of the lease period, the sum of the minimum lease receipt and the initial direct cost on the lease start date is regarded as the entry value of the financial lease receivable, and the unsecured balance shall be recorded. The difference between the sum of the minimum lease receivable, the initial direct cost and the unsecured balance and the sum of its present value is recognized as the unrealized financing income. The balance of the receivable financial lease after deducting the unrealized financial income shall be presented as long-term claims and long-term claims maturing within one year, respectively. The unrealized financing income shall be calculated and confirmed by the real interest rate method during the lease period. Contingent rentals shall be recognized in current profits and losses when actually occurring. 31. Other important accounting policies and accounting estimates (1) Termination of business Termination of operation refers to a component that meets one of the following conditions, can be separately distinguished and has been disposed of or classified as held for sale by the Company: ① This component represents an independent major business or a separate major business area. ② This component is part of an associated plan to dispose of an independent major business or a

内容: separate major business area. ③ This component is a subsidiary company acquired specifically for resale. For the accounting treatment methods for termination of operations, please refer to the relevant descriptions in Note 3, 12 “Assets held for sale and disposal group". (2) Hedge accounting In order to avoid some risks, the Company hedges some financial instruments as hedging instruments. For the hedges meeting the specified conditions, the Company adopts the hedge accounting method for treatment. The hedging of the Company is fair value hedging. At the beginning of hedging, the Company formally designates hedging instruments and hedged items, and prepares written documents on hedging relationship and risk management strategy and risk management objectives of the Company engaged in hedging. In addition, the Company will continuously evaluate the effectiveness of hedging at the beginning and after the hedging. Fair value hedging If a hedging instrument is designated as a fair value hedge and meets the conditions, the profits or losses arising therefrom shall be included into the current profits and losses. If the hedging instrument hedges the non-trading equity instrument investment (or its components) that is measured at fair value and whose changes are included in other comprehensive income, the gains and losses generated by the hedging instrument are included in other comprehensive income. The profit or loss of the hedged item due to the hedged risk exposure shall be included into the current profits and losses, and the book value of the hedged item shall be adjusted at the same time. If the hedged item is measured at fair value, the gain or loss of the hedged item due to the hedged risk does not need to adjust the book value of the hedged item, and the relevant gains and losses are included into the current profits and losses or other comprehensive income. When the Company cancels the designation of the hedging relationship, the hedging instrument has expired or been sold, the contract has been terminated or exercised, or no longer meets the conditions for the application of hedge accounting, the application of hedge accounting shall be terminated. 32. Significant accounting judgments and estimates In the process of applying accounting policies, due to the inherent uncertainty of business activities, the Company needs to judge, estimate and assume the book value of statement items that cannot be accurately measured. These judgments, estimates and assumptions are based on the Company's management's past historical experience and other relevant factors. These judgments, estimates and assumptions will affect the reported amounts of income, expenses, assets and liabilities

内容: and the disclosure of contingent liabilities at the balance sheet date. However, the actual results caused by the uncertainty of these estimates may be different from the current estimates of the Company's management, resulting in a significant adjustment to the carrying amount of the assets or liabilities affected in the future. The Company reviews the aforesaid judgments, estimates and assumptions on a regular basis on the basis of going concern. If the change of accounting estimates only affects the current period of change, the number of impacts shall be recognized in the current period of change. If the change affects both the current and future periods, the number of impacts will be confirmed in the current and future periods of the change. On the balance sheet date, the Company needs to judge, estimate and assume the amount of financial statement items in the following important areas: 1. Impairment of financial assets The Company uses the expected credit loss model to evaluate the impairment of financial instruments. The application of the expected credit loss model requires significant judgment and estimation, and all reasonable and basis information, including forward-looking information, shall be considered. In making these judgments and estimates, the Company deduces the expected changes in the debtor's credit risk based on historical data and combined with economic policies, macroeconomic indicators, industry risks, external market environment, technological environment, changes in customer conditions and other factors. 2. Inventory falling price reserves According to the inventory accounting policy, the Company measures according to the lower of cost and net realizable value. For the inventory whose cost is higher than net realizable value and which is obsolete and unsalable, the Company makes provision for inventory falling price. Impairment of inventories to net realizable value is based on the evaluation of the marketability of inventories and their net realizable value. The appraisal of impairment of inventories requires the management to make judgment and estimation on the basis of obtaining conclusive evidence and considering factors such as the purpose of holding inventories and the influence of events after the balance sheet date. The difference between the actual result and the original estimate will affect the book value of inventory and the accrual or reversal of inventory depreciation reserve during the period when the estimate is changed. 3. Provision for impairment of long-term assets On the balance sheet date, the Company judges whether there are signs of possible impairment for non-current assets other than financial assets. For intangible assets with uncertain service life, in addition to the annual impairment test, the impairment test is also carried out when there are signs of

内容: impairment. Other non-current assets other than financial assets shall be tested for impairment when there are indications that their book amounts are not recoverable. When the book value of an asset or asset group is higher than the recoverable amount, that is, the higher of the net amount of the fair value minus the disposal expenses and the present value of the estimated future cash flow, it indicates that an impairment has occurred The net amount of the fair value less the disposal expenses shall be determined by referring to the sales agreement price or observable market price of similar assets in fair transactions, and deducting the incremental cost directly attributable to the disposal of such assets. When estimating the present value of future cash flow, it is necessary to make a significant judgment on the output, sales price, related operating costs and the discount rate used in the calculation of the present value of the asset (or asset group). In estimating the recoverable amount, the Company will use all relevant information available, including forecasts of production, selling price and related operating costs based on reasonable and supportable assumptions. The Company shall test whether goodwill is impaired at least every year. This requires an estimate of the present value of the future cash flows of the asset group or portfolio of asset groups to which goodwill has been allocated. When predicting the present value of future cash flow, the Company needs to predict the cash flow generated by the future asset group or asset group portfolio, and at the same time, select the appropriate discount rate to determine the present value of future cash flow. 4. Depreciation and amortization After considering the residual value of investment real estate, fixed assets and intangible assets, the Company will accrue depreciation and amortization on a straight-line basis during their service lives. The Company reviews the service life regularly to determine the amount of depreciation and amortization expenses to be included in each reporting period. The service life is determined by the Company based on the past experience of similar assets and in portfolio with the expected technological updates. If there is a significant change in previous estimates, the depreciation and amortization charges will be adjusted in the future. 5. Deferred income tax assets To the extent that there is likely to be sufficient taxable profits to offset the losses, the Company recognizes deferred income tax assets for all unused tax losses. This requires the Company's management to use a large number of judgments to estimate the time and amount of future taxable profits, combined with tax planning strategies, to determine the amount of deferred income tax assets to be recognized.

内容: 6. Income tax In the normal business activities of the Company, there are certain uncertainties in the final tax treatment and calculation of some transactions. Whether some items can be paid before tax requires the approval of the tax authorities. If there is a difference between the final determination result of these tax matters and the amount initially estimated, the difference will have an impact on the current income tax and deferred income tax during the final determination period. 7. Accrued liabilities According to the terms of the contract, existing knowledge and historical experience, the Company estimates and makes corresponding provision for product quality assurance, estimated contract losses, liquidated damages for delayed delivery, etc. In the event that such contingencies have formed a current obligation and the performance of the current obligations is likely to result in outflow of economic benefits from the Company, the Company recognizes the contingencies as estimated liabilities based on the best estimate of the expenditure required to perform the relevant current obligations. The recognition and measurement of the estimated liabilities depend to a large extent on the judgment of the management. In the process of judgment, the Company needs to evaluate the risks, uncertainties, time value of money and other factors related to these contingencies. Among them, the Company will make an estimated liability for the after-sales quality maintenance commitments provided to customers for the sale, maintenance and renovation of the goods sold. The Company's recent maintenance experience data have been taken into account when estimating liabilities, but the recent maintenance experience may not reflect the future maintenance situation. Any increase or decrease in this provision may affect the profit and loss in the future years. 8. Fair value measurement Certain assets and liabilities of the Company are measured at fair value in the financial statements. When estimating the fair value of an asset or liability, the Company adopts the available observable market data available. If the first level input value cannot be obtained, the Company will employ a qualified third-party appraiser to perform the appraisal. The Company works closely with qualified external appraisers to determine the appropriate valuation techniques and inputs to the relevant models IV. Taxes 1. Main Taxes and Tax Rates Types Value Added Tax Tax Basis Tax Rate After deducting the allowable amount of input tax deducted in the current period, the difference between 1%、 3%、 5%、 6%、 the sales of goods, taxable services and taxable services income calculated in accordance with the

内容: Types

内容: Tax Basis Tax Rate provisions of the Tax Law is the taxable value-added 9%、10%、13% tax. 7%、5%

内容: Urban Maintenance According to the actual value-added tax & Construction Tax Extra charges education funds

内容: of According to value added tax and consumption tax on 3% the basis of actual payment

内容: Local Extra Charges According to value added tax and consumption tax on 2% of Education Funds the basis of actual payment Corporate Taxes According to taxable income 25%、17%、15%、 20% According to 70% of original value of the real estate (or rental income) as the tax base; according to the 12%、1.2% original value of the real estate deducted 30% at a time.

内容: Property Tax

内容: The company conducts VAT taxable sales or imports goods. According to the announcement issued by Ministry of Finance, State Administration of Taxation and China Custom about the policy relating to deepening VAT reform ( Announcement by Ministry of Finance, State Administration of Taxation and China Custom (2019) No.39), from 1st April 2019 onwards, the applicable rates are adjusted to 13%/9%. Meanwhile, the company can deduct VAT by additional deductible rate of 10% from 1st April 2019 to 31st December 2021 because of its business nature as service provider. Representation on tax payers of different enterprise income tax rates: Tax Payers Jingliang (Singapore) International Trade Co., Ltd. Beijing Guchuan Bread Food Co., Ltd. Hangzhou Lin'an Chunmanyuan Agricultural Development Co., Ltd. 2. Important preferential tax policies and basis Hangzhou Linan Little Angel Food Co., Ltd., a 4th tier subsidiary company of the Company, is a welfare enterprise. Since May 2016, it has enjoyed the preferential VAT policy of immediate refund upon payment in Preferential Value-Added Tax Policies for Promoting the Employment of Disabled Persons (CaiShui [2016] No.52). The level 2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited, according to the document JTCFDST(2018) No. 1539765025415 issued by tax authority of Caofeidian District, Tangshan, affiliated to State Administration of Taxation, and also followed the rules in Law of the People's Republic of China on the Administration of Tax Collection, The Income Tax Rate 17% 15% 20%

内容: Implementation Guideline of Law of the People's Republic of China on the Administration of Tax Collection, the rice under the brand of Tixiang produced by Caofeidian company if exempted from VAT. The level 2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited, according to the rules under Clause 27 of Corporate Law and its Implementation Guideline Clause 86, the rice under the brand of Tixiang produced by Caofeidian company if exempted from Corporation tax. Beijing Guchuan Bread&Food Co., Ltd., a 3rd tier subsidiary of the Company, is a high-tech enterprise. It enjoys the preferential tax policy of paying enterprise income tax at the 15% tax rate according to the relevant provisions of both “Law of the People's Republic of China on Tax Collection and Administration” and “Rules for the Implementation of the Tax Collection and Administration Law of the People's Republic of China”. It obtained the certificate of high-tech enterprise No. GR202111000657, valid until September 14, 2024. The company level 3 subsidiary Beijing day weikang grease DiaoXiao center co., LTD., according to the national tax administration of the ministry of finance, the notice about food enterprises exempted from VAT tax word (1999), article 5, 198, responsible for collection and storage of grain purchase and sale of state-owned grain enterprises and business duty-free items listed in the notice of other food business, and government reserves edible vegetable oil sales enterprises, which should be examined by the competent tax authorities deemed tax-exempt status, not reported to the competent tax authorities where the audit determined that no exemption, From June 1, 2017 to December 31, 9999, the company will exempt edible vegetable oil stored by the government from VAT. Jingliang (Singapore) International Trade Co., Ltd., a 3rd tier subsidiary of the Company, levies taxes on the principle of territoriality. The company is taxed on the territoriality principle. According to Singapore's preferential tax policy, the company enjoys tax exemption plan is as follows: for the first SGD$10,000 of taxable income amount the taxable income amount shall be reduced by 75%; for the portion between SGD$10,001 and SGD$200,000, the taxable income amount shall be reduced by 50%; For the portion exceeding SGD$200,000, the taxable income amount shall not be reduced. The company shall pay income tax at the rate of 17% on the taxable income amount after exemption. In accordance with the relevant provisions of Ministry of Finance and State Administration of Taxation “Notice on Preferential Enterprise Income Tax Policies for Employment of Persons with Disabilities”(Cai Shui[2009] No.70), Hangzhou Linan Little Angel Food Co., Ltd. , a 4th tier subsidiary company of the Company: Where an enterprise employs persons with disabilities, on the basis of deduction according to the wages paid to the disabled workers, it may deduct the amount of

内容: taxable income according to 100% of the wages paid to the disabled workers. The company level 3 subsidiary Zhejiang Xiaowangzi Foodstuff Co., Ltd. and 4th tier subsidiary company-Hangzhou Linan Little Angel Food Co., Ltd. ,are entitled to enjoy the urban land use tax reduction policy of unified implementation of classification and grading for taxpayers in the manufacturing industry within the province (including Ningbo City) according to the provisions of the General Office of the People's Government of Zhejiang Province Document No. 62 of 2019, and enjoy 100% and 80% reduction of urban land use tax for Class A and Class B enterprises respectively until December 31, 2021, with the maximum reduction of 100% and 80% of the urban land use tax payable by the Unit for the year. Linqing Little Prince Food Co., Ltd., a fourth-level subsidiary of the company, shall be subject to 50% of the sales revenue on the basis of the stamp tax payable in the industrial procurement link and sales link in the purchase and sale contract of industrial enterprises according to the annountment No.10, 2018 issued by Shandong Provincial Tax Bureau. The base of stamp duty payable in 2021 shall be calculated according to 50% of the sales revenue. Company’s level 4 subsidiary-Liaoning Xiaowangzi Food Limited, according to the Supplementary Announcement on Land Use Tax issued by Ministry of Finance and State Administration of Taxation (89) GSDZ No.140 Clause 13 states that public land such as municipal street, square, public green etc. can be exempted from land use tax, when computing land use tax, the area used in the computation is total area less the area for afforest and street. Company’s level 4 subsidiary-Hangzhou Lin'an Chunmanyuan Agricultural Development Co., Ltd. , according to the Announcement of the State Administration of Taxation on Matters Relating to the Implementation of Preferential Income Tax Policies to Support the Development of Small and Micro-profit Enterprises and Individual Entrepreneurs and State Administration of Taxation Announcement No. 8 of 2021, from January 1, 2021 to December 31, 2022, for small and micro-profit enterprises with annual taxable income not exceeding RMB1 million The part of the annual taxable income of small and medium-sized enterprises shall be reduced by 12.5% of the taxable income and the enterprise income tax shall be calculated at a tax rate of 20%. The company level 4 subsidiary Jingliang (Hebei) Oil Industry Co., Ltd., according to the financial department documents, local taxation bureau in hebei province, hebei province document ji caishui [2019] no. 56 "about parts reserve commodity announcement concerning the tax policy, accounting books shall be exempt from stamp duty for funds, to undertake business book stand in the process of buying and selling contract commodity reserves shall be exempt from stamp duty, other parties in the contract should pay the stamp duty shall also be subject to duty-payment according to the parties. Property tax and land use tax of cities and towns shall be exempted from the property tax

内容: and land use tax of cities and towns that undertake the business of commodity reserve for their own use. The notice will be executed on January 1, 2019 and will terminate on 31st December., 2021. Jingliang (Hebei) Oil Industry Co., Ltd., a 4th subsidiary company of the Company, exempts the sale of edible vegetable oil stored by the government from VAT according to “Notice of the Ministry of Finance and the State Administration of Taxation on the Levy and Exemption of Value Added Tax for Food Enterprises”（Cai Shui [1999] No.198） Ⅴ. Changes in accounting policies, accounting estimates, and explanation of corrections to previous errors 1. Changes in accounting policies (1) The Company adopted the relevant provisions of Chinese Accounting Standards for Business Enterprises No.21 – Leases (Accounting (2018) No. 35) from January 1, 2021, and adjusted the amounts of right-of-use assets, lease liabilities and other related items in the financial statements based on the cumulative effect number, without adjusting the information for the comparable periods. The change in accounting policy resulted in the following impacts Changes in accounting policies and reasons The new lease standard requires companies to separately present right-of-use assets and lease liabilities in the balance sheet (except short-term leases and leases of low-value assets). Among them, lease liabilities are usually divided into non-current liabilities and Current portion of The consolidated balance sheet as of non-current liabilities. January 1, 2021 presents right-of-use In the income statement, the lessee should show the assets of 7,787,410.08yuan, current interest expense of the lease liabilities and the depreciation portion of non-current liabilities expense of the right-of-use assets separately. The interest 1,154,817.69yuan, and lease liabilities expense of lease liabilities is shown in the financial of 1,459,723.40yuan. expense. The parent company has no leasing The main accounts affecting the statement are right-of-use business,so the change in accounting assets, lease liabilities, and Current portion of non-current policy has no effect on the parent liabilities. company's statement items. The amount of retained earnings and other related items in the financial statements at the beginning of the year are adjusted according to the cumulative effect.No adjustment is made to the information of comparable periods. (2) The Company adopted the relevant provisions of Chinese Accounting Standards for Business Implication for the financial position and income

内容: Enterprises No.14 (Financial accounting [2021] No. 1) from January 1, 2021 to adjust the opening amount of retained earnings and other related items in the financial statements based on the cumulative effect number, without adjusting the information for the comparable periods. This change in accounting policy has no impact on the Company's financial statement. (3) The Company adopted the relevant provisions of Chinese Accounting Standards for Business Enterprises No.15 (Financial accounting [2021] No. 35) on "Presentation related to centralized management of funds" on January 1, 2021, and if the financial statements of an enterprise before the issuance of the interpretation are not presented in accordance with the above provisions, the financial statement data of the comparable period shall be adjusted in accordance with this interpretation. The change in accounting policy has no impact on the Company's financial statements. 2. Changes in accounting estimates There is no change in accounting estimate during the reporting period. 3. Correction of previous accounting errors There is no previous accounting error correction in this reporting period. 4. The Company implemented the new lease standard for the first time on January 1, 2021. The impact of the financial statements as January 1, 2021 is as follows：

内容: Monetary Unit: Items Current Assets: Monetary capital Transactional financial assets Derivative financial assets Notes receivable Accounts receivable Receivables financing Prepayment Other receivables Including: Interest receivable Dividends receivable Inventory Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets Non-current assets: Long-term equity investment Other equity instruments investment Other non-current financial assets Investment property Fixed assets Construction in process Right-of-use assets Intangible assets Development expenditure Goodwill Long-term deferred expenses Deferred income tax assets 191,394,422.51 20,529,601.50 3,346,814.27 191,394,422.51 15,464,980.51 3,346,814.27 -5,064,620.99 354,139,335.32 22,560,212.50 1,131,143,854.07 28,458,413.67 22,560,212.50 1,131,143,854.07 28,458,413.67 7,787,410.08 354,139,335.32 7,787,410.08 217,762,487.79 20,000,000.00 217,762,487.79 20,000,000.00 845,450,678.36 3,386,429,770.43 845,450,678.36 3,386,321,522.43 -108,248.00 1,225,083,742.26 1,225,083,742.26 282,343,218.05 541,905,656.97 282,234,970.05 541,905,656.97 -108,248.00 456,565.85 92,245,667.60 456,565.85 92,245,667.60 335,466,169.61 63,478,071.73 335,466,169.61 63,478,071.73 31 December 2020 1 January 2021 RMB Yuan

内容: Adjustments

内容: Items Other non-current assets Total non-current assets Total assets Current liabilities: Short-term borrowings Derivative financial liabilities Accounts payable Account collected in advance Contract liabilities Employee payroll payable Taxes payable Other payables Including: Interest payable Dividends payable Current portion of non-current liabilities Other current liabilities Total current liabilities Non-current liabilities: Long-term borrowings Long-term payable to employees Estimated liabilities Lease liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Owners' equity (or Shareholders' equity): Capital stock Other equity instruments Including: Preferred stock Perpetual capital bonds Capital reserves

内容: Items Less: treasury stock Other comprehensive income Special reserves Surplus reserves Undistributed profit Total equity attributable to the parent company Minority equity Total owners' equity (or shareholders' equity) Total liabilities and owners' equity (or shareholders' equity)

内容: 31 December 2020

内容: 1 January 2021

内容: Ⅵ. Notes on Items in Consolidated Financial Statements Note: The ‘beginning’ of the period refers to January 1, 2021 and the ‘end’ of the period refers to December 31, 2021. The previous period refers to the year 2020 and the current period refers to the year 2021 1. Monetary funds (1) Classification list Items Cash Bank Deposits Other Currency Funds Total Among them: the total amount of money deposited abroad Ending Balance Beginning Balance 15,012.17 465,853,913.24 41,275,743.04 507,144,668.45 16,432,706.23 16,761.72 299,235,964.61 36,213,443.28 335,466,169.61 3,153,447.17

内容: (2) At the end of the period, there are 215,857.76yuan of freezing and other restricted funds. Of this amount, 166,353.66yuan was unfrozen before the reporting date. (3) At the end of the period, there is no funds deposited abroad and the return of funds is restricted. 2. Transactional financial assets Items Financial assets measured at fair value with changes included in current profits and losses Among them: debt instrument investment Total 40,377,048.08 40,377,048.08 63,478,071.73 63,478,071.73 Ending Balance 40,377,048.08 Beginning Balance 63,478,071.73

内容: 3. Notes receivable (1) Classification list Items Bank acceptance bill Commercial acceptance bill Total 4. Accounts Receivable （1）Disclosed according to aging Aging Within 1 Year (including 1 year) Among them: Within the credit (within 3 months) Credit period to 1 year 1 to 2 years (including 2 years) 2 to 3 years (including 3 years) 3 to 4 years (including 4 years) 4 to 5 years (including 5 years) More than 5 years Sub-total Less Bad Debt provision Total （2）Present according to the method of provision for bad debt Ending Balance Type(s) Book Balance Amount Separate provision for bad debts Portfolio provision for bad debts Among them: portfolio 1 portfolio 2 Total （Continued）

内容: Ending Balance

内容: Beginning Balance 456,565.85

内容: Bad Debt Provision Amount

内容: Ratio(%)

内容: Provision Book Value Ratio(%)

内容: Beginning Balance Type(s) Book Balance Amount Separate provision for bad debts Portfolio provision for bad debts Among them: portfolio 1 portfolio 2 Total

内容: 一一

内容: A. Separate provision for bad debts Ending Balance Name Accounts Receivable

内容: Bad Debt Provision

内容: Provision Ratio

内容: Provision Reason

内容: expected unrecoverable expected unrecoverable expected unrecoverable －－

内容: Beijing Xidan spicy town food limited Beijing Rongfa Lida Grain and Oil Trade Co., Ltd. Others Total B. Portfolio provision for bad debts 1. Portfolio provision: aging portfolio

内容: Ending Balance Name Within 1 Year (including 1 year) Among them: Within the credit (within 3 months) Credit period to 1 year 1 to 2 years (including 2 years) 2 to 3 years (including 3 years)

内容: Accounts receivable 65,611,523.16 Bad Debt Provision 34,531.93 Provision Ratio

内容: Beginning Balance

内容: Accounts receivable 69,026,628.09 Bad Debt Provision 7,466.13 Provision Ratio

内容: Ending Balance Name 3 to 4 years (including 4 years) 4 to 5 years (including 5 years) More than 5 years Total

内容: Accounts receivable Bad Debt Provision Provision Ratio 50

内容: Accounts receivable 45,270.42 Bad Debt Provision 22,635.21 Provision Ratio 50

内容: 2. Portfolio provision: related parties portfolio Ending Balance Name Related portfolio Total parties

内容: Accounts receivable Bad Debt Provision Provision Ratio

内容: 3. details of bad debt provision Items Bad debt provision on individual basis Credit impairment loss Total Beginning Balance

内容: The amount changed for the period

内容: Addition Withdrawal or reversal 875.90 Write-off Other changes

内容: 4.Accounts receivable actually written off in the current period Items Actual amount Write-off amount 18,420.00

内容: During the period, the board of directors approved to write off the Beijing branch of Hainan Food Holdings Co., Ltd. and to write off the uncollectible receivables. 5. Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period Debtors Tangshan Caofeidian District Finance Bureau Accounts receivable

内容: Ratio of totalaccounts receivable (%)

内容: Aging

内容: Within 3 months, 1-2 years

内容: Whethe Bad Debt r Provision related

内容: Debtors Zhejiang Lvqin Supply Chain Management Co., Ltd. Wumart South Development Co., Ltd. Shanghai Laiyifen Co.,Ltd. Feed Branch of Beijing Sanyuan Seed Technology Co., Ltd. Total 5. Advanced Payment

内容: Accounts receivable

内容: No

内容: Within 3 months

内容: 4-12 months Within 3 months

内容: No No

内容: (1) Advances are presented by age Aging Within 1 year (including 1 year) 1 to 2 years (including 2 years) 2 to 3 years (including 3 years) More than 3 years Total

内容: Ending Balance Amount

内容: Beginning Balance Amount

内容: (2) Advance payment of the top five Ending Balances by prepaid objects Debtor Name TIANJIN CUSTOMS DISTRICT P.R.CHINA Sinograin Oils Corporation Ahcof International Development Co., Ltd. Cargill Ventures (China) Co., Ltd. Louis Dreyfus (Tianjin) International Trade Co., Ltd Total 6. Other Receivables A. Overview (1) Classification Ending Balance

内容: Ratio of the total ending balance of prepayments (%)

内容: Item(s) Interest Receivable Dividend Receivable Other Receivables Total B. Other Receivables （1）Disclosed according to aging Aging Within 1 Year (including 1 year)

内容: Among them: Within the credit (within 3 months) Credit period to 1 year 1 to 2 years (including 2 years) 2 to 3 years (including 3 years) 3 to 4 years (including 4 years) 4 to 5 years (including 5 years) More than 5 years Sub-Total Less Bad Debt provision Total （2）Classification of other receivables by nature of funds Nature of Funds Guaranteed Deposit and Deposit Intercourse Funds of Units Employee Receivables Tax Refund Receivables Personal Intercourse Funds Others Total C. Details about allowance for bad debt Provision for bad debt Stage 1 Stage 2 Stage 3

内容: Book Balance at End of Period Book Balance at Beginning of Year

内容: Total

内容: Expected credit loss in the next 12 months Amount on 1st January 2021

内容: Expected credit loss for the whole period (no credit impairment)

内容: Expected credit loss for the whole period (with credit impairment)

内容: Carrying amount on 1st January 2021 that in this period: ——Get into Stage 2 ——Get into Stage 3 ——Get back to Stage 2 ——Get back to Stage 1 Provision for the period Reverse for the period Transfer for the period Write off for the period Other changes Amount on 31st December 2021 D. Details of bad debt provision

内容: Carrying Type amount at the beginning Addition Withdrawal or reversal Write-off Other changes Amount changes for the period Carrying amount at the end 100,697.85 100,697.85 50,000.00 50,000.00 94,234.26 94,234.26

内容: Credit impairment loss

内容: E. Other receivables actually written off in the current period Items Actual amount Write-off amount 50,000.00

内容: During the period, the board of directors approved to write off the Beijing branch of Hainan Food Holdings Co., Ltd. and to write off the uncollectible receivables

内容: F. Other receivables according to top five of balance at end of period collected by debtors Nature Funds Proportion in Ending overall ending balance of of Balance at End Aging of Period balance of other bad debt receivables (%) reserves 94,315,663.80 Within 1 year 89,987,154.70 Within 1 year 33.11 31.59 9.98 8.17 6.71 89.57

内容: Zhongtian Futures Co. Ltd Futures margin Haitong Futures Co., Ltd Futures margin

内容: Sdic Cgog Futures Co., Futures margin 28,434,143.60 Within Ltd. 1 year Dalian Exchange Commodity Futures margin 23,269,880.00 Within 1 year Futures margin 19,127,100.00 Within 1 year — 255,133,942.10 —

内容: G. Receivables related to government grants Name of the grant company Name of Carrying government amount at the grants end Aging at the end of the period Time, amount and evidence of expected collection

内容: Tax Bureau of Linan Refund of DIatrict, Hangzhou, VAT Zhejiang Province Total 7. Inventory (1) Inventory Category ——

内容: All amount will be collected in January 2022, the company always qualify for tax refund policy for disabled person ——

内容: Book Balance Development costs Developing commodities Commission processing Replacement of oil reserve Total 1,903,849,301.71 476,729.53 1,903,372,572.18 248,197,500.00 248,197,500.00 Falling Price Reserves Book Value

内容: (2) Inventory Falling Price Reserves and provision for impairment of contract performance costs Increased Amounts in the Current Period Accrual Others

内容: Decreased Amounts in the Current Period Balance at End of Period Recover or Others Charge Off

内容: Stock Goods Develop Products Raw material In total

内容: Note: the basis for the provision of depreciation is the market quotation of the world granary website. The other reason is that the development commodities are adjusted to the investment real estate, and the corresponding price adjustment is adjusted synchronously.( （3）Stock Goods listed by major product type Ending Balance Items Book Balance Grease and oils Food Others Falling Price Reserves

内容: Beginning Balance Book Value Book Balance

内容: Ending Balance Items Book Balance Total Falling Price Reserves

内容: 8. Non-current assets due within one year Items Three-year term deposits In total 9. Other Current Assets Items Financial Products Pre-paid Taxes and Fees Pending Deduct VAT Input Tax Fair Value Changes of Items Trapped at Hedging In total 10. Long-term Equity Investment Balance Beginning Year Increase or Decrease in the Current Period at Confirmed Profit and of Additional Negative Loss on Investment Investment Investment under Equity Law

内容: 1. Cooperative Enterprise Beijing CHIA TAI Feedmill Limited Sub-total 2. Joint Venture China Grain Reserves (Tianjin) Warehouse Logistics Co., Ltd. Jingliang Mismi Catering Management (Beijing) Co., Ltd. Sub-total Total

内容: (Continued) Increase or Decrease in the Current Period Adjustment of Other other changes comprehensive in equity income

内容: Announce to Accrual of Others Distribute Impairment Case Reserves Dividends or Profits

内容: 11. Other equity instruments investment Item Chongqing long jinbao network technology co. LTD China Net Technology Investment Co., Ltd Hainan General Chamber of Commerce Total 12. Investment Real Estate (1) Investment Real Estate Adopting Cost Measurement Model Land Use Projects under Items Buildings Right Construction One. Original Book Value 1. Balance at Beginning of Year 2. Increased Amounts in the Current Period (1) Outsourcing (2) Inventory transfer (3) Others 3. Decreased Amounts in the Current Period (1) Disposal 20,000,000.00 20,000,000.00 Ending Balance 20,000,000.00 Beginning Balance 20,000,000.00

内容: Items (2) Other transfer out 4. Balance at End of Period Two. Accumulated Impairment and Accumulated Amortization 1. Balance at Beginning of Year 2. Increased Amounts in the Current Period (1) Accrual or Amortization 3. Decreased Current Period (1) Disposal Amounts in the

内容: Land Use Projects under Right Construction

内容: (2) Other transfer out 4. Balance at End of Period Three. Impairment Reserves 1. Balance at Beginning of Year 2. Increased Amounts in the Current Period (1) Accrual (2) Inventory transfer 3. Decreased Current Period (1) Disposal Amounts in the 10,587,796.70 10,587,796.70 22,331,321.34 22,331,321.34

内容: (2) Other transfer out 4. Balance at End of Period Four. Book Value 1. Book Value at End of Period 2. Book Value at Beginning of Year 13. Fixed Assets 1. Overview (1) Classification Items Fixed Assets Balance at End of Period 1,120,758,409.49 Balance at Beginning of Year 1,131,143,854.07 20,925,683.56 22,560,212.50 20,925,683.56 22,560,212.50 10,587,796.70 10,587,796.70

内容: Items Disposal of Fixed Assets In total 2. Fixed Assets

内容: Items One. Original Book Value 1. Balance at 1,078,081,803.33 749,741,236.96 21,309,684.25 12,169,795.89 6,663,883.31 1,982,310.67 1,869,948,714.41 Buildings Machinery Equipment Transportation Equipment Electronic Equipment Office Equipment Others Total

内容: Items 4. Balance at End of Period Three. Reserves 1. Balance at Impairment

内容: Beginning of Year 2. Amounts Increased in the 1,539,741.69 1,539,741.69

内容: inventory 3. Amounts Decreased in the 1,912.44 1,912.44

内容: (2) Fixed assets without property right certificate Project Buildings Book Value 2,236,948.76 Reasons for failure to complete certificate of title No title certificate for auxiliary assets

内容: 14. Project under Construction 1. Overview (1) Classification Items Project under Construction Total 2. Project under Construction (1) Situation of Project under Construction Balance at End of Period 11,220,840.10 11,220,840.10 Balance at Beginning of Year 28,458,413.67 28,458,413.67

内容: Balance at End of Period Items 1. roasted potato supporting automation line project 2. Walnut cake production line of No.2 plant 3. slope treatment project of No.3 plant 4. add two 4D Corn Flake production lines 5. 32,400 tons of oil tank and terminal oil pipeline project 6. 2600bph project of packaging oil 10L production line 7. New production line of small fried compound potato chips in leisure No.1 Factory 8. New production line of fried potato chips 9. Fried potato chips automation transformation project and others 10. Others Total

内容: Balance at Beginning of Year Book Balance Impairment Reserves Book Value

内容: (2) Change Condition of Important Engineering Projects under Construction in the Current Period

内容: Roll-in Fixed Other Increased Assets Decreased Amounts in Amount in the Amounts in the Current Current the Current Period Period Period

内容: Two new 4D Corn Flake 3,207,668.25 1,939,772.10 5,147,440.35 production lines 32400 ton oil tank and wharf oil pipeline project 2600bph packaging production line Production line of baked potato workshop in No.2 1,784,537.82 factory Fried potato chips 738,638.94 2,291,108.94 790,120.35 2,574,658.17 project oil of 10L 2,809,734.52 2,809,734.52 2,869,993.38 30,888,177.59 33,758,170.97

内容: automation transformation 1,552,470.00 project and others New production line of fried potato chips Total

内容: （3）There was no provision for impairment of Project under Construction during the period. 15. Right-of-use asset Items One Original Book Value 1. Balance at Beginning of Year 2. Increased Amounts in the Current

内容: Items Period (1) Lease 3. Decreased Current Period Amounts in the

内容: (1) Expiration of the lease or change the lease term 4. Balance at End of Period Two Accumulated Depreciation 1. Balance at Beginning of Year 2. Increased Amounts in the Current Period (1) Accrual 3. Decreased Current Period Amounts in the

内容: Lease expiration or change 4. Balance at End of Period Three Impairment Reserves 1. Balance at Beginning of Year 2. Increased Amounts in the Current Period (1) Accrual 3. Decreased Current Period (1) Disposal 4. Balance at End of Period Four Book Value 1. Book Value at End of Period 2. Book Value at Beginning of Year 16. Intangible Assets (1) Intangible Assets Situation Items One Original Book Value 1. Balance at Beginning of Year

内容: Items 2. Increased Amounts in the Current Period (1) Purchase 3. Decreased Amounts in the Current Period (1) Disposal 4. Balance at End of Period Two Amortization Accumulated

内容: 1. Balance at Beginning of Year 2. Increased Amounts in the Current Period (1) Accrual 3. Decreased Amounts in the Current Period (1) Disposal 4. Balance at End of Period Three Impairment Reserves 1. Balance at Beginning of Year 2. Increased Amounts in the Current Period (1) Accrual 3. Decreased Amounts in the Current Period (1) Disposal 4. Balance at End of Period Four Book Value 1. Book Value at End of Period 2. Book Value at Beginning of Year 17. Goodwill

内容: (1) Original Book Value of Goodwill Name of Invested Unit or Items Balance at Beginning of Increase in the Current Period Decrease in the Current Balance at Period End of

内容: Acquire stock shares of Zhejiang 191,394,422.51 Xiaowangzi Food Co., Ltd. In total Book value of goodwill

内容: (2) Relevant information about the group or groups of assets that include goodwill Asset group or portfolio of asset groups Main components Book value Determinati on method Income method Is there any change in the current period No

内容: Fixed assets, investment real estate, intangible assets, construction in progress, etc

内容: Note: Taking December 31, 2021 as the base date of evaluation, Beijing Jinggrain Food Co., Ltd. conducted impairment tests on the goodwill l formed by the acquisition of the equity of Zhejiang Little Prince Food Co., Ltd. The book value of the asset group including goodwill was 835.26 million yuan, and the recoverable amount was no less than 843.20 million yuan. The test results showed that there was no impairment of goodwill. The component of group or groups of assets: impairment test for goodwill related asset as group of asset, main cash in is independent from cash in of other group of assets, this group of assets should be consistent with the group of assets that was recognized in the impairment test of goodwill on acquisition date and previous years. (3) Recognition method of goodwill impairment loss and process, key assumptions and key parameters of goodwill test 1) At the end of the period, the company performed an impairment test on the asset group related to goodwill. When performing an impairment test on a related asset group or asset group combination that includes goodwill, if there is an impairment of the asset group or asset group combination related to goodwill If there are signs, an impairment test is performed on the asset group or combination of asset groups that does not include goodwill, and the recoverable amount is calculated and compared with the book value to confirm the corresponding impairment loss. Then perform an impairment test on the asset group or asset group combination that includes goodwill, and compare the book value of the asset group or asset group combination that contains the distributed goodwill with its recoverable amount. If the relevant asset group or asset group combination is

内容: recoverable, The amount is lower than its book value, and the impairment loss of goodwill is recognized. 2) Important key assumptions adopted and their basis: 1. As for the actual situation of assets on

内容: the evaluation base date, it is assumed that the company continues to operate; 2. Assume that the cash inflows rated as units after the evaluation base date are uniform inflows, and cash outflows are uniform outflows; 3.On the basis of the existing management methods and management levels, the company's business scope and methods are consistent with the current direction; 4. There will be no major changes in the interest rates, exchange rates, taxation benchmarks and tax rates, and policy levy fees; 5. The management of the unit being assessed is responsible, stable and capable of performing its duties. 3）Key parameter Forecast period Revenue Revenue growth growth rate rate over the Profit margin over the stable forecast period period 2.10% 0 Pre-tax discount rate

内容: Zhejiang Little Prince Food Co., 2022 to 2025 Ltd.

内容: Calculated based on forecasted revenue, 15.47% costs, expenses, etc.

内容: (4) Impact of goodwill impairment test After testing, the company's goodwill formed by the acquisition of the operating asset group of Zhejiang Little Prince Food Co., Ltd. is not impaired. 18. Long-term Unamortized Expenses Increased Balance at Amortized Other Amounts in Balance at Beginning of Amounts in the Decreased the Current End of Period Year Current Period Amounts Period

内容: Items Reconstruction of majuqiao plant Amortization of laboratory decoration costs Factory No.3 compartment maintenance Housing renovation Total

内容: 19. Deferred Income Tax Assets/Deferred Income Tax Liabilities (1) Deferred Income Tax Assets Not Being Offset

内容: Balance at End of Period Items Deductible Temporary Difference Impairment 560,563.61 196,089.81 1,808,563.08 12,097,654.47 5,677,134.00 Deferred Income Tax Assets 140,140.91 49,022.46

内容: Balance at Beginning of Year Deductible Temporary Difference 254,446.99 Deferred Income Tax Assets 63,611.73

内容: Lease liabilities Deductible Loss Credit impairment Loss Deferred Income Wages payable Valuation of Financial Instruments and Derivative Financial Instruments In total

内容: (2) Details of Deferred Income Tax Liabilities Not Being Offset Balance at End of Period Items Valuation and appreciation of assets in merger of enterprises not under the same control Valuation of Financial Instruments and Derivative Financial Instruments Total Balance at Beginning of Year

内容: Taxable Temporary Deferred Income Taxable Temporary Deferred Income Tax Difference Tax Liabilities Difference Liabilities 154,787,977.45 38,696,994.37 164,849,010.97 41,212,252.73

内容: (3)Details of Deferred Income Tax Liabilities after Offset Offseting amount deferred assets liabilities Carrying amount Carrying amount offseting amount of after offsetting of after offsetting deferred tax assets between deferred tax between deferred and liabilities at the tax assets and and tax assets and end of last period liabilitie at the end liabilities of last period 13,571,063.19 45,250,919.91 8,748,762.34 8,748,762.34 3,346,814.27 65,115,801.22

内容: Deferred tax asset Deferred tax liabilities

内容: (4)Details of Deferred Income Tax Assets Not Being Confirmed

内容: Items Deductible temporary differences Deductible Loss In total

内容: (5)Deductible loss on deferred income tax assets not being confirmed will be due at the following years Year 2021 2022 2023 2024 2025 2026 Total 20. Other Non-current Assets Ending Balance Items Provis ion for Book balance impair ment Equipment and Project Funds Three-year term deposit Total

内容: Beginning Balance Provision for impairme nt

内容: 21. Short-term Borrowings （1）Classification of Short-term Borrowings Items Guaranteed Loan Fiduciary Loan In total 22. Derivative financial liability Balance at End of Period 23,262,063.93 1,498,407,537.42 1,521,669,601.35 Balance at Beginning of Year 105,088,229.17 1,392,325,849.88 1,497,414,079.05

内容: Item Changes in fair value of hedging instruments Total 23. Accounts Payable （1）Accounts Payable Listed Items Material Funds Payable Project Funds Payable Equipment Funds Payable Others In total 24. Advance payment （1）Advance payment Listed Items Advance collection of rent In total 25. Contract liabilities （1） Classification of contract liabilities Items Loans Service payment In total 26. Wages Payable （1）List of Wages Payable Balance Beginning Year Short-term Balance at End of Period

内容: Balance at Beginning of Year 1,087,874.02 1,087,874.02

内容: at Increase in the Decrease in the Balance at End of Current Period Current Period of Period

内容: Two After-service WelfareSet up ESP liabilities Three Dismission Welfare

内容: （2）List of Short-term Compensation Balance Beginning Year at Increase in the Decrease in the Balance at End of Current Period Current Period of Period

内容: 3. Social Insurance Expense Among them: Medical Insurance Premiums Industrial Injury Insurance Premiums Birth Insurance Premiums Others 4. Housing Provident Funds 5. Labor Union Expense and Personnel Education Fund In total

内容: （3）List of Stated Drawings Plan Balance Beginning Year at Increase in the Decrease in the Balance at End of Current Period Current Period of Period 1,281,915.76 44,475.16 46,587.09 1,372,978.01

内容: Items 1. Basic Pension Insurance 2. Unemployment Insurance Expense 3. Enterprise Charges Total Annuity

内容: 27. Taxes and Fees Payable Items Corporate Income Tax Balance at End of Period 74,174,903.15 Balance at Beginning of Year 21,972,563.71

内容: Items VAT Urban Maintenance and Construction Tax House Property Tax Land Use Tax Individual Income Tax Educational Surtax Local Educational Surtax Stamp Tax Environmental protection tax Water conservancy construction fee In total 28. Other Accounts Payable A. Overview (1) Classification

内容: Items Interest Payable Dividends Payable Other Accounts Payable In total B. Interest Payable (1) Classification Items Loan Interest between Enterprises In total C. Dividends Payable (1) Classification Items

内容: Items Common stock dividends Others In total D. Other Accounts Payable

内容: (1) List of Other Accounts Payable by Nature of Funds Items Guaranteed Deposit and Deposit Intercourse Funds between Units Intercourse Funds of Related Parties Personal Intercourse Funds Various Insurances of Employee Others In total 29. Non-current liabilities due within one year Item Current portion of lease liability Total End balance 1,582,978.69 1,582,978.69 Beginning balance 1,154,817.69 1,154,817.69 Balance at End of Period 25,053,238.93 9,931,464.29 5,722,550.45 4,032,688.22 2,768,202.89 2,181,343.26 49,689,488.04 Balance at Beginning of Year 16,271,518.35 13,468,108.09 1,831,079.90 4,025,881.59 2,102,370.03 2,497,824.93 40,196,782.89

内容: 30. Other current liability 1. Other current liability statement Item Value-added tax to be written off Total 31. Long term borrowing Item Guaranteed Loan Total 32. Lease liability End balance 71,000,000.00 71,000,000.00 Beginning balance Interest Rate 3.51% End balance 22,994,553.60 22,994,553.60 Beginning balance 8,319,696.79 8,319,696.79

内容: Item Lease liability 33. Long term wage payable (1)List of long-term wage payable Items Net liabilities of defined benefit plan in post employment benefits Dismission Welfare Other Long-term Welfare In total 34. Deferred Income

内容: Balance at Increase in Decrease in Beginning of the Current the Current Year Period Period

内容: Among them, items involving government subsidy are as follows: Items Receiving Subsidy Enterprise foundation supporting in the construction stage of "Tianjin Lingang Industrial Zone Management Committee" Special subsidy infrastructure investment for

内容: Increase in Charge to the other Current Profits Period

内容: The relocation compensation Tianjin Binhai New District’s Industrially Technical Renovation and Park Construction

内容: Items Receiving Subsidy Funds as well as Expenditures for Science and Technology Key technology research and industrialization project of "moderate processing" of grain and oil Construction of provincial grain reserve information management system to form asset entry project Research and technology demonstration of green and clean production equipment and process for edible oil Design of electric heating system for oil tank Special subsidies for Beijing Reserve Granary Facility Maintenance In total 35. Share Capital

内容: Changes in the Current Period（+、-） Balance at Beginning of Share Transfer New Share Share Year of Provident Others Issue Donation Fund

内容: 1. Shares with 207,336,985.00 Restricted Conditions (1) State Shareholding

内容: Balance at End of Period Sub-total 149,500.00

内容: (2) State-owned Legal-person 164,877,598.00 Shareholding (3) Other Domestic 42,459,387.00 Capital Shareholding Including: Domestic Legal-person Shareholding 1,299,500.00

内容: Domestic Natural 41,159,887.00 Person Shareholding (4) Foreign Shareholding Including: Foreign Legal-person Shareholding Foreign Natural Person Shareholding 2. Tradable Shares without Restricted 519,613,266.00 Conditions (1) RMB Shares Ordinary 454,638,266.00 164,877,598.00

内容: (2) Domestically 64,975,000.00 Listed Foreign Shares (3) Listed Foreign Shares Overseas (4) Others In total 726,950,251.00

内容: 36. Capital Reserves Balance Beginning Year (Stock at Increase in Decrease in Balance at End of the Current the Current of Period Period Period

内容: Capital Reserves Roll-in Under Original System Other Capital Reserves In total

内容: Note: The increase of capital reserve was due to the funds received from the parent company, Beijing Capital Agriculture Group, for technology projects of RMB1.09 million.

内容: Amounts Occurred in the Current Period Amounts Items Balance Beginning Year at of Occurred before Income Tax in the Period One Other Current Less: Comprehensive Other Incomes Less: included in other comprehensive and income Less: Income Tax Expense to in the previous period transferred retained income in the current period Attributable Parent After Tax to Attributable Minority Shareholders After Tax to Balance at End of Period

内容: Charged at Earlier Stage and Current Roll-in Profit and Loss

内容: comprehensive incomes that won’t be classified into profit and loss 1. Remeasure and set the change amount of benefit plan 2. Other comprehensive income that cannot be transferred to profits and losses under the equity method 3. Changes in the fair value of other equity instrument investments 4. Changes in fair value of the enterprise's own credit risk

内容: Amounts Occurred in the Current Period Amounts Items Balance Beginning Year at of Occurred before Income Tax in the Period Two Other -363,258.66 -319,023.56 Current Less: Comprehensive Other Incomes Less: included in other comprehensive and income Less: Income Tax Expense to in the previous period transferred retained income in the current period -319,023.56 -682,282.22 Attributable Parent After Tax to Attributable Minority Shareholders After Tax to Balance at End of Period

内容: comprehensive incomes that will be classified into profit and loss 1. Other comprehensive income transferable to profit and loss under the equity method 2. Changes in the fair value of other debt investments 3. Amount of financial assets reclassified into other income 4. Provision for credit impairment of other debt investment 5. Effective part of cash flow hedging comprehensive -355,212.00 -105,630.50 -105,630.50 -460,842.50

内容: Amounts Occurred in the Current Period Amounts Items Balance Beginning Year at of Occurred before Income Tax in the Period 6. Converted difference between currency statements Total -363,258.66 -319,023.56 -319,023.56 -682,282.22 foreign financial -8,046.66 -213,393.06 Current Less: Comprehensive Other Incomes Less: included in other comprehensive and income Less: Income Tax Expense to in the previous period transferred retained income in the current period -213,393.06 -221,439.72 Attributable Parent After Tax to Attributable Minority Shareholders After Tax to Balance at End of Period

内容: 38. Surplus Reserves Items Statutory Surplus Reserves Free Surplus Reserves In total Balance at Beginning of Year

内容: 39. Undistributed Profit Items Adjustment on undistributed profit at end of last year Adjustment on total number of undistributed profit at beginning of period (increase+ and decrease-) Adjusted undistributed profit at beginning of period Add: net profit attributable to parent company in the current period Less: withdrawal legal surplus reserves Withdrawal free surplus reserves Withdrawal general risk reserves Ordinary stock dividends payable Ordinary stock dividends transferred to capital Undistributed profit at end of period 40. Operation Revenue and Operation Cost (1)Operation Revenue and Operation Cost Items Prime Business Other Business In total Amounts in the Current Period Revenue

内容: Amounts in the Current Period 187,033,763.26

内容: Amounts in the Prior Period 2,186,806.56

内容: (2) Prime Business (Industry and Business-classified) Name of Industry Amounts in the Current Period Amounts in the Prior Period

内容: (or Business) Oil and Oil Seeds Food Processing Others In total

内容: (3)Prime Business (Region-classified) Name of Region North China East China Northeast China South East In total Amounts in the Current Period Revenue

内容: 41. Tariff And Annex Items Urban Maintenance and Construction Tax Educational Surtax Local Educational Surtax House Property tax Land Use Tax Stamp Tax Vehicle and Vessel Use Tax Land Value Added Tax Other Taxes and Fees In total 42. Sales Expenses Items Employee Compensation (including social security, etc) Sales Promotion Expenses Warehousing Fees Depreciation Travel Expenses Amounts in the Amounts in the Current Period Prior Period 77,384,564.22 24,192,308.99 11,180,870.38 13,626,528.80 6,561,854.51 72,069,470.68 39,131,372.82 13,401,508.98 13,195,597.53 5,425,245.85 39,411.60 23,788,999.87 Amounts in the Current Period 8,123,144.87 3,533,840.85 2,355,895.48 5,496,760.45 247,528.32 3,952,317.43 40,100.87 Amounts in the Prior Period 6,612,721.25 2,895,143.94 1,930,095.99 6,842,452.33 2,222,677.37 2,582,084.39 40,775.71 4,790.20 51,780.08 23,182,521.26

内容: Items Material consumption, sample and product cost Lease fee Repair Costs Operation Expenses Terminal Charges Water and Electricity Fees Commodity Wastage Vehicle Fees Packing Expenses Test and Detection Fees Business Entertainment Expenses Labor Protection Fees Commercial Insurance Expenses Others Total 43. Administration Expenses Items Employee Compensation (including social security, etc) Impairment Costs Amortization of Assets Fees of Employing Agent Company Expenses Repair Costs Lease fee Vehicle Fees Security Protection Fees Information Network Fees Environmental Protection Fees Business Entertainment Expenses Commercial Insurance Expenses Workers Insurance Expenses Travel Expenses Material Consumption

内容: Items Labor Protection Fees Taxes in Expenses Other Expenses In total 44. Research and Development Expenses Items Salary Material consumption Design expense Transportation Expense Others In total 45. Financial Expenses Items Interest Expenses Less: Interest Income Exchange Profit and Loss Service Charges In total 46. Other Profits

内容: Items Government Subsidy Related to Daily Corporate Activities Return of Service Charges of Withholding Individual Income Tax Refund of VAT and surtax In total 47. Investment Income Items Long-term equity investment income accounted

内容: Amounts in Amounts in the Current the Prior Period Period

内容: Items with equity method Investment income from management products disposal of wealth

内容: Investment income of disposing trading financial asssets Investment income obtained during the holding of transactional financial assets Others In total 48. Profits on Changes in Fair Value Source of generating income with changes in fair value Financial assets that are measured as per fair value and for which the changes are included in the current profit and loss Including: income with changes in fair value generated by derivative financial instruments Trading financial liabilities Investment real estate measured by fair value In total 49. Credit impairment loss Items Accounts receivable bad debt loss Other receivables bad debt loss Total 50. Loss from Asset Devaluation Items Loss on Bad Debts Loss on Inventory Price Drop In total 51. Assets Disposal Income Amounts in the Current Period

内容: Amounts in the Current Period -66,667,420.88

内容: Amounts in the Prior Period -16,467,791.36

内容: Amounts in the Prior Period -63,449.10 -63,449.10

内容: Items Gains or losses on disposal of fixed assets In total 52. Non-operating Income (1)Classification

内容: Amounts Amounts in Charged to the Prior Non-recurring Period Profit and Loss

内容: Total non current assets retirement gains: Including: fixed assets scrap profit profit from scrap of intangible assets Penalty income Payable amounts not required to be paid Government Subsidy Relocation Compensation Other Gains In total

内容: (2)Government Subsidy Charged to Non-recurring Profit and Loss Subsidy projects Relocation Compensation Incentive Funds Special subsidies for the activities of "two new" organisations Quality and patent awards in 2020 Relief policy subsidy Total 53. Non-operating Expenses Amounts to Amounts in the Amounts in the Charged Current Period Prior Period Non-recurring Profit and Loss

内容: Amounts in the Amounts in the Asset related / Current Period Prior Period income related

内容: Income related Income related Income related

内容: Items Total loss on scrap of non current assets Including: loss on scrap of fixed assets

内容: Items Penalty expenditure Others Total 54. Income Tax Expenses (1) List of Income Tax Expenses Amounts in the Current Period

内容: Amounts Amounts in the Amounts in the Charged to Current Period Prior Period Non-recurring Profit and Loss

内容: Income Tax Expenses of the Current Period Deferred Income Tax Expenses Total

内容: (2) Accounting Profit and Income Tax Expense Adjustment Process Items Total Profits Income tax expenses calculated by statutory/applicable tax rate Effect of subsidiary corporations being applicable to different tax rates Adjustment on effect of income tax in the prior period Effect of Non-taxable Incomes Effect of Non-deductible cost, expense and loss Effect of deductible loss on usage of unconfirmed deferred income tax assets in the prior period Effect of deductible temporary difference or deductible loss on unconfirmed deferred income tax in the current period Effect of deductions Others Income Tax Expenses Amounts in the Current Period 315,485,189.54 78,871,297.39 -1,844,755.24 2,489,564.19 -5,760,010.74 -879,902.43 -5,363,511.97 Amounts in the Prior Period 285,339,793.18 71,334,948.30 -947,694.04 430,220.89 -3,847,972.30 970,773.85 -5,783,060.94

内容: Other comprehensive income items and their income tax impact and

内容: transferred to profit and loss See details of ‘Appendix Six Notes on Items in Consolidated Financial Statements, 37 Other Comprehensive Incomes’ 56. Notes to items related cash flow statement

内容: (1) Receiving other cash related to operation activities Items Future Margins Intercourse Funds of Other Units Interest Income Intercourse Funds of Related Parties Non-operating Income and other income Others Total Amounts in the Amounts in Current Period Prior Period 1,459,292,560.77 106,778,161.58 17,053,537.35 3,304,968.87 4,106,124.86 3,238,949.73 1,593,774,303.16 the

内容: (2) Other Cash Payment Related to Operation Activities Items Future Margins Payment for Administration Expenses Intercourse Funds of Other Units Payment for Operating Expenses Intercourse Funds of Related Parties Bank Charges Petty Cash Paid Non-operating Expenses Others In total Amounts in the Current Period 1,594,071,648.75 43,378,783.81 13,893,169.13 56,305,025.22 7,669,514.72 4,879,506.88 198,860.83 90,694.64 6,689,174.26 1,727,176,378.24 Amounts in the Current Period Amounts in the Prior Period 1,383,095,725.00 36,716,789.68 85,094,941.48 103,477,595.33 27,810,666.27 1,527,207.20 785,283.72 1,435,373.86 10,217,449.20 1,650,161,031.74 Amounts in the Prior Period 960,000.00 960,000.00

内容: (3) Other cash received related to investment activities Items Fixed assets subsidy In total

内容: (4) Other cash received related to financing activities

内容: Items Subsidies related to R&D from Beijing Capital Agriculture Group In total

内容: Amounts in the Current Period 1,090,000.00 1,090,000.00 Amounts in the Current Period

内容: (5) Other cash paid related to financing activities Items Acquisition of minority shareholders' equity of Zhejiang Little Prince Lease payment amount In total 57. 937,516.52 937,516.52 Supplementary Materials of Cash Flows Statement 104,730,266.66 Amounts in the Prior Period 104,730,266.66

内容: (1) Supplementary Materials of Cash Flows Statement Supplementary Materials 1. Adjusting net accounting profit to operating cash flow

内容: Net Profit Add: Assets Impairment Reserves Credit impairment loss Fixed Assets Depreciation, Oil-and-gas Depreciation and Productive Biological Depreciation Amortization of Intangible Assets Amortization of Long-term Deferred Expenses Losses on Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets (Fill in profit with symbol “－”) Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) Losses on Changes in Fair Value (Fill in profit with symbol “－”) Financial Expenses (Fill in profit with symbol “－”) Investment Losses (Fill in profit with symbol “－”) Decrease in Deferred Income Tax Assets (Fill in increase with symbol “－”) Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol “－”) Assets Assets

内容: Decrease in Inventory (Fill in increase with symbol “－”) Decrease in Items of Operating Receivables (Fill in increase with symbol “－”) Increase in Items of Operating Receivables (Fill in decrease with symbol “－”) Others Net Cash Flows from Operating Activities 2. Major investment and financing activities that do not involve cash payments Conversion of Debt into Capital Convertible Bonds Due Within One Year Fixed Assets under Financing Lease 3. Net change conditions in cash and cash equivalents Cash balance at end of period Less: cash balance at beginning of period Add: balance of the cash equivalents at end of period Less: balance of the cash equivalents at beginning of period Cash and cash equivalent net increase quota

内容: (2) Composition of cash and cash equivalents Items One Cash Including: cash in stock Bank deposit available for payment at any time Other currency funds available for payment at any time Deposits with central bank available for payment Interbank deposit Interbank placements Two Cash Equivalents Including: bond investment maturing within three months Three Balance of Cash and Cash Equivalents at End 506,928,810.69 334,389,017.41 Balance at End of Period 506,928,810.69 15,012.17 465,650,779.09 41,263,019.43 Balance at Beginning of Period 334,389,017.41 16,761.72 298,158,812.41 36,213,443.28

内容: Items of Period Including: restricted cash and cash equivalents used by parent company or intra-group affiliates 58.

内容: Assets with restricted ownership or right to use Items Book Value at End of Period 215,857.76 3,550,960.00 5,880,839.21 5,822,183.64 15,469,840.61 Reasons being Restricted Letter of Credit Margin and Account Suspension Pledge of warehouse receipts Litigation Freeze Litigation Freeze ——

内容: Currency Funds Inventory Investment Real Estate Fixed Assets In total

内容: Note: Restricted amounts of 215,857.76yuan existed at the end of the period. Of which 166,353.66yuan was released from freeze before the reporting date. 59. Monetary Items of Foreign Currency

内容: (1) Monetary Items of Foreign Currency Items Monetary fund Including: US Dollars Accounts receivable Including: US Dollars Short-term borrowing Including: US Dollars Balance of Foreign Currency at End of Period 3,614,784.76 3,614,784.76 93,368.00 93,368.00 125,857,140.16 125,857,140.16 Exchange Rate Convert 6.3757 6.3757 6.3757 6.3757 6.3757 6.3757 Balance of Converting to RMB at End of Period 23,046,783.19 23,046,783.19 595,286.36 595,286.36 802,427,368.52 802,427,368.52

内容: (2) Instruction of Operational Entity Overseas The registrant and operating unit of the Company is Beijing Grain (Singapore) International Trade Co., Ltd. with main business place of Singapore and recording currency of US Dollars. 60. Hedging items and related hedging instruments

内容: Please refer to 22. Derivative financial liability under Section VI of the Notes. 61. Government Subsidies

内容: （1）Basic conditions of government grants

内容: Type VAT refunds Special subsidy funds infrastructure support fees for

内容: Presentation item Other income Deferred income

内容: Special subsidy for infrastructure input Special subsidy for production line technical reform Subsidy for job stabilization Compensation for demolition and relocation Subsidy for Work-in-Training Tianjin Lingang Grain and Oil Processing Warehouse and Logistics Project of Beijing Grain Group Provincial grain reserve information management system construction Job Stabilization Subsidy Gas boiler low-NOx transformation subsidy Subsidy for the operation of the home for the disabled Compensation for demolition and relocation Subsidies for disabled persons' jobs Industrial enterprise incentive funds Financial boiler low-NOx subsidy Green cleaning and oil tank electric heating Oil and fat enzymatic moderate refining sets of equipment Training subsidies Policy cashing incentive funds Tax benefits for retired soldiers (VAT benefits) Smart manufacturing special funds incentives (green factory) Emergency turnover food subsidies

内容: Deferred income Deferred income Other income Deferred income Other income Deferred income

内容: Deferred income Other income Other income Other income Non-operating income Other income Other income Other income Deferred income Deferred income Other income Non-operating income Other income Other income Other income

内容: Type Unemployment insurance rebate 2020 Foreign Economic and Trade Project Subsidy Others In total

内容: Presentation item Other income Other income Other income

内容: VII. Change in Consolidation Scope The Company invested jointly with Sinograin Oils Corporation to establish

内容: Jingliang (Yueyang) Grain and Oil Industry Co., Ltd, with a shareholding of 65%. The subsidiary is in the stage of preparation for opening and has not yet completed the paid-in capital. The above-mentioned entity was included in the scope of consolidation during the reporting period. VIII. Equities in Other Entities 1. Equities in Subsidiaries (1) Composition of the Company

内容: Beijing Jingliang Food Co., Ltd. Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. Beijing Jingliang Oil and Fat Co., Ltd. Jingliang (Hebei) Oil Industry Co., Ltd. Beijing Guchuan Edible Oil Co., Ltd.

内容: Merger under the same control Merger under the same control

内容: Investment management Agricultural Product and By Product Processing

内容: Grain and oil trade Agricultural Product and By Product Processing Grain and oil trade

内容: Merger under the same control Merger under the same control Merger under the same control

内容: Beijing Eisen-Lubao Oil Co., Ltd. Beijing Tianweikang Oil Distribution Center Co., Ltd. Beijing Guchuan Bread Food Co., Ltd. Zhejiang Xiao Wang Zi Food Co., Ltd. Hangzhou Lin'an Xiaotianshi Food Co., Ltd. Liaoning Xiao Wang Zi Food Co., Ltd. Linqing Xiao Wang Zi Food Co., Ltd. Lin'an Chunmanyuan Agricultural Development Co., Ltd. Jingliang (Singapore) International Trade Co., Ltd. Jingliang Rural Complex Construction and Operations (Xinyi) Co., Ltd. Jingliang (Caofeidian) Agricultural Development Co., Ltd.

内容: Agricultural Product and By Product Processing

内容: Merger under the same control Merger under the same control Merger under the same control Combination not under same control Combination not under same control Combination not under same control Combination not under same control Combination not under same control

内容: Beijing jingliang gubi oil and grease co. LTD Jingliang (Yueyang) Grain and Oil Industry Co., Ltd.

内容: Profit And Loss Attributable to Minority Shareholders for the Current Period Dividends Distributed to Minority Shareholders for the Current Period Balance of Minority Shareholder's Equity at the End of the Period

内容: Shareholding Ratio of Minority Shareholders (%)

内容: Voting rights ratio of Minority Shareholders (%)

内容: Zhejiang Xiao Wang Zi Food Co., Ltd. Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. Jingliang (Hebei) Oil Industry Co., Ltd. Jingliang (Caofeidian) Agricultural Development Co., Ltd.

内容: (3) Important financial information on major non-wholly-owned subsidiaries Ending balance or Amount incurred in the current period Items Zhejiang Xiao Wang Zi Food Co., Ltd.

内容: Jingliang (Tianjin) Grain and Oil Industry Co., Ltd.

内容: Jingliang (Hebei) Oil Industry Co., Ltd.

内容: Jingliang (Caofeidian) Agricultural Development Co., Ltd.

内容: Ending balance or Amount incurred in the current period Items Zhejiang Xiao Wang Zi Food Co., Ltd. Jingliang (Tianjin) Grain and Oil Industry Co., Ltd.

内容: Non-current Assets Total Assets Current Liabilities Non-current Liabilities Total Liabilities Operating Income Net Profit (Loss) Total Comprehensive Income Cash Flow from Operating Activities

内容: (Continued) Beginning balance or Amount incurred in the prior period Items Zhejiang Jingliang Xiao Wang Zi (Tianjin) Grain Food Co., and Oil Industry Ltd. Co., Ltd.

内容: Current Assets Non-current Assets Total Assets Current Liabilities Non-current Liabilities Total Liabilities Operating Income

内容: Beginning balance or Amount incurred in the prior period Items Zhejiang Jingliang Xiao Wang Zi (Tianjin) Grain Food Co., and Oil Industry Ltd. Co., Ltd.

内容: Net Profit (Loss) Total Comprehensive Income Cash Flow from Operating Activities

内容: 2. Equity in Joint Ventures or Affiliates 1. Important Joint Ventures or Affiliates Accounting Treatment Methods for Investment in Joint Direct Indirect Ventures or Affiliates Shareholding Ratio (%)

内容: Name of Joint Venture or Affiliate One Joint Ventures

内容: Principle Registered Place of Place Business

内容: 1. Beijing Zhengda Feed Co., Beijing Ltd. Two Affiliates 1. SINOGRAIN (Tianjin) Tianjin Warehousing Logistics Co., Ltd. 2. Jingliang Missme Catering Beijing Management (Beijing) Co., Ltd.

内容: 2. Important financial information on major joint ventures Ending Balance/Current Beginning Balance/Last Amount Term Amount Beijing Zhengda Feed Beijing Zhengda Feed Co., Co., Ltd. Ltd. 259,094,822.42 228,921,574.13

内容: Including: cash and cash equivalents Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Minority shareholder's equity Shareholders' equity attributable to the parent company Share of net assets shareholding ratio Adjustments -- Goodwill -- Unrealized profits from internal transactions -- Other Book value of equity investment in joint ventures Fair value of equity investment in joint ventures with open offers Operating income Financial costs Income tax expense Net profit Net profit from discontinued operations Other comprehensive income Total comprehensive income Dividends received from joint ventures in the current period based on

内容: 3. Important financial information on major affiliates Ending Balance/Current Amount Item SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. Beginning Balance/Last Term Amount SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd.

内容: Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Minority shareholder's equity Shareholders' attributable to company the

内容: Share of net assets based on shareholding ratio Adjustments -- Goodwill -- Unrealized profits internal transactions -- Others Book value of equity investment in affiliates Fair value of equity investment in affiliates with open offers Operating income Net profit Net profit from discontinued operations Other comprehensive income Total comprehensive income Dividends received from affiliates in the current period from

内容: IX. Risks Related to Financial Instruments The Company's principal financial instruments include equity investment, creditors' investment, borrowing, accounts receivable, accounts payable, etc. The primary purpose of these financial instruments is to finance the operations of the Company.The Company has a variety of other financial assets and liabilities directly arising from its operations, such as accounts receivable and accounts payable.

内容: The main risks caused by the Company's financial instruments are credit risk, liquidity risk and market risk. 1. Classification of financial instruments (1) Book value of various financial assets on the balance sheet date A. December 31, 2021 Financial assets Financial measured at fair Financial asset assets value and the items measured at changes recorded amortized cost in current profits and losses Monetary funds Transactional financial assets Derivative financial assets Notes receivables Accounts receivables Other receivables Investment in other equity instruments Current portion of non-current assets Other assets current

内容: Financial assets measured at fair value and the changes Total recorded in other comprehensive income

内容: B. December 31, 2020 Financial Financial asset assets items measured at amortized cost Monetary funds Transactional financial assets

内容: Financial assets measured at fair value and the changes recorded in current profits and losses

内容: Financial assets Financial measured at fair Financial asset assets value and the items measured at changes recorded amortized cost in current profits and losses Derivative financial assets Notes receivables Accounts receivables Other receivables Investment in other equity instruments Other non-current assets

内容: (2) Book value of various financial liabilities on the balance sheet date A. December 31, 2021 Financial liability items Short term loans Derivative liability Other Payables B. December 31, 2020 Financial liability items Short term loans Derivative liability Other Payables 2. Credit Risk financial

内容: Financial liabilities measured at fair value and changes included in current profits and losses

内容: On December 31, 2021, the largest credit risk exposure that may cause financial loss to the Company mainly comes from the loss on financial assets of the Company due to the failure of the other party to perform its obligations, including: Book value of financial assets recognized in the consolidated balance sheet; for a financial instrument measured at fair value, its book value reflects its risk exposure instead of their biggest risk exposure, and its biggest risk exposure may vary with the change of its future fair value. In order to reduce the credit risk, the Company sets relevant policies to control its exposure, sets corresponding credit periods based on customer’s financial position, possibility of obtaining guarantees from third parties, credit records and other factors such as current market conditions and other credit qualifications for customer assessment, and implements other monitoring procedures to ensure that necessary measures are taken to recover overdue credits. In addition, the Company reviews the collection of individual account receivables on each balance sheet date in order to make sufficient provision for bad debts for collectable amounts. Therefore, the Company's management believes that the Company's credit risk has been greatly reduced. The liquidity funds of the Company are deposited in banks with high credit rating, so the credit risk of liquidity funds is low. 3. Liquidity Risk When managing liquidity risk, the Company keeps and monitors adequate cash and cash equivalents approved by its management in order to meet the Company's business needs and reduce the influences of cash flow fluctuations. The Company's management monitors the use of bank loans and ensures the performance of loan agreements. Maturity analysis of financial liabilities in terms of undiscounted contractual cash flows: December 31, 2021 Item Short term loans Derivative liability financial Within One Year 1,521,669,601.35 70,305,871.37 185,082,028.27 1,666,718.15 73,985,586.39 December 31, 2020 Item Short term loans Derivative financial liability Accounts payable Other Payables Within One Year 1,497,414,079.05 371,219,136.84 72,075,894.39 3,308,181.00 72,292,881.24 1 To 5 Years Above Years Five Total 1,497,414,079.05 371,219,136.84 75,384,075.39 72,292,881.24 1 To 5 Years Above Years Five Total 1,521,669,601.35 70,305,871.37 186,748,746.42 73,985,586.39

内容: Accounts payable Other Payables (Continued)

内容: 4. Market risk Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to the change of market price. Market risk mainly includes interest rate risk, foreign exchange risk and other price risks, such as equity instrument investment price risk. (1) Interest Rate Risk The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating interest rates bring the Company the interest rate risk on cash flow, while the financial liabilities at fixed interest rates bring the Company the interest rate risk on fair value. The Company decides the relative proportion of fixed interest rate contracts and floating interest rate contracts according to the current market environment. As of December 31, 2021, the Company's interest-bearing liabilities under floating rate contracts denominated in RMB amounted to RMB 170,000,000.00 and those under fixed rate contracts denominated in RMB amounted to RMB 1,351,669,601.35. (2) Exchange Rate Risk The Company's exposure to foreign exchange risks is primarily related to the Company's operating activities (when revenues and expenditures are settled in foreign currencies other than the Company's accounting standard currency) and its net investments in its overseas subsidiaries. The Company's exposure to foreign exchange risks is mainly related to US dollars. Except that some of the Company's subsidiaries purchase and sell in US dollars, other major business activities of the Company are priced and settled in RMB. As at December 31, 2021, the Company's assets and liabilities are in RMB, except the assets or liabilities described in the table below are in US dollars. The foreign exchange risks arising from the assets and liabilities of such foreign currency balances may have an impact on the Company's operating results. Items Monetary funds Accounts receivable Short-term borrowing Accounts payable Other Payables 802,427,368.52 595,286.36 381,054.16 Ending Balance 23,046,783.19 Beginning Balance 5,056,624.13 1,044,832.24

内容: Note: The Company pays close attention to the impact of exchange rate fluctuations on the Company. The company adopts sensitivity analysis technology to analyze the possible impact of reasonable and possible changes of risk variables on current profit and loss or owner's equity. As any risk variable rarely changes in isolation, and the correlation between variables will have a significant effect on the final impact amount of a risk variable change, the following content is carried out under the assumption that the change of each variable is independent. On the assumption that foreign currency assets and foreign currency liabilities remain relatively stable and other variables remain unchanged, the after-tax impact of possible

内容: reasonable changes in exchange rate on current profits and losses and rights and interests is as follows: Current period Item [US dollar] Gross profit/net Increase/(decrease) Exchange rate profit increase shareholders' equity Increase /(decrease) /(decrease) 5%

内容: The yuan depreciated against the US dollar The yuan appreciated against the US dollar

内容: Prior period Item [US dollar] Gross profit/net Increase/(decrease) Exchange rate profit increase shareholders' equity Increase / (decrease) /(decrease) 5% 286,020.11 in

内容: X. Disclosure of Fair Values 1. Fair values of assets and liabilities measured at fair value at the end of the period Fair Values at the End of the Period Item First Level Fair Value Measurement fair Second Level Fair Value Measurement Third Level Fair Value Measurement Total

内容: Ⅰ. Transactional financial assets 1. Financial assets that are measured at fair value and whose changes are included in the current profits and losses (1) Investment in debt instruments (2) Investment in equity instruments

内容: Fair Values at the End of the Period Item First Level Fair Value Measurement Second Level Fair Value Measurement Third Level Fair Value Measurement Total

内容: (3) Derivative financial assets 2. Financial assets designated as fair value through profit or loss (1) Investment in debt instruments (2) Investment in equity instruments (3) Others Ⅱ. Other debt investment Ⅲ. Investment in other equity instruments Total assets continuously measured at fair value Ⅵ.Transactional financial liabilities 1. Financial liabilities measured at fair value with changes included in current profits and losses Including: transactional bonds issued derivative liability others 2. Financial liabilities designated as fair value through profit or loss Total liabilities continuously measured at fair value

内容: 2. Basis for determining market prices of continuous and non-continuous first level fair value measurement items The Company makes offers for first level fair value measurement according to open contracts of the futures exchange and the quote from the bank on financial product at the end of the period.

内容: 3. Continuous and non-continuous third-level fair value measurement items adopt valuation techniques and qualitative and quantitative information of important parameters The company‘s investment in other equity instruments of the third level fair value measurement project is the ”three noes“ equity investment that without control, joint control and significant influence held by the company. On the basis of analyzing the operation status of the invested enterprise and combining with relevant situations, the company takes the investment cost as the fair value of other equity instrument investment for measurement at the end of the period. XI. Related Parties and Related-Party Transactions 1. Identification criteria of related parties If one party controls, jointly controls or exerts significant influence on the other party, and two or more parties are controlled, jointly controlled or significantly influenced by the same party, they constitute related parties. 2. Parent Company of the Company Registered Capital of (ten thousand Yuan) 90,000.00

内容: Wholly Beijing Grain state-owned Group Co. Ltd. enterprise (Continued)

内容: Proportion of Voting Proportion of Shares Power Held by Parent The ultimate controlling Organization Held by Parent Company Company in the Company party of the Company code in the Company (%) (%) 39.68 39.68 3. Subsidiaries of the Company See 1. Equity in Subsidiaries under Section VIII of the Notes for details. 4. Joint Ventures and Affiliates of the Company See 3. Equity in Joint Ventures or Affiliates under Section VIII of the Notes for details. 5. Other Related Parties Name of Other Related Party

内容: Beijing Ershang Wangzhihe Food Co., Ltd. Feed branch of Beijing Sanyuan Seed Industry Technology Co., Ltd Hebei shounong Modern Agricultural Technology Co., Ltd

内容: Beijing State-owned Capital Operation and 683551038 Management Center

内容: Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party

内容: Beijing Shounong Consumption Assistance Innovation and Entrepreneurship Center Co., Ltd. Beijing Guchun Food Co., Ltd Hebei Luanping Huadu Food Co., Ltd Beijing Er Shang palace Yifu Food Co., Ltd Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd Huairou Brewery of Beijing Liubiju Food Co. Beijing food supply office No.34 supply department Co., Ltd Beijing Haidian Xijiao grain and oil supply station Co., Ltd Beijing shounong Supply Chain Management Co., Ltd Beijing Zhujun grain and oil supply Co., Ltd Beijing Children soldiers grain and oil supply Co., Ltd Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd Beijing Guchun rice Co., Ltd Beijing baijiayi Food Co., Ltd Beijing Sanyuan Food Co., Ltd Beijing jinggrain e-commerce Co., Ltd Beijing junchengyuan grain and oil purchase and Marketing Co., Ltd Beijing Hongyuan Lijun grain and oil supply Co., Ltd Beijing Dongfang Agricultural Group Supply Chain Management Co., Ltd. Beijing maliandou special supply station Co., Ltd Beijing Liangguan Grain and Oil Supply Co., Ltd. Beijing Huadu Yukou Poultry Co., Ltd. Shanghai shounong Investment Holding Co., Ltd Shandong Fukuan Bioengineering Co., Ltd Beijing Yueshengzhai Halal Food Co., Ltd Da Hong Men Meat Food Co.,ltd Beijing Er Shang Group Beijing heiliu animal husbandry technology Co., Ltd Beijing Capital Agriculture Group Beijing Grain Group Co., Ltd Beijing Academy of Food Science Beijing jinggrain Dagu grain and Oil Trade Co., Ltd Beijing Shounong Grain Reserve Co., Ltd. Beijing Daxing National Food Reserve Co., Ltd Beijing Shounong Development Co., Ltd.

内容: Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party

内容: Beijing dahongmen grain storage Co., Ltd Beijing Nanyuan vegetable oil factory Co., Ltd Beijing Grain Group Head Company Beijing shounong Xiangshan Conference Center Co., Ltd Beijing shounong Food Group Finance Co., Ltd Tianjin Juxiang Technology Co., Ltd.

内容: Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party Controlled by the ultimate controlling party

内容: 6. Related-party Transactions A. Related-party transactions for purchasing and saling goods and provision and acceptance of labor services (1) Purchase of goods or acceptance of labor services Related Party

内容: Shanghai HOLDINGS Ltd. Sunlon Investment

内容: Purchase of goods Purchase of goods Purchase of goods Purchase of goods

内容: Beijing Guchun Food Co., Ltd Shandong Fukuan Bioengineering Co., Ltd Beijing Yueshengzhai Halal Food Co., Ltd

内容: Beijing Jingliang Dongfang grain and Oil Purchase of goods Trading Co., Ltd Da Hong Men Meat Food Co.,ltd Purchase of goods Beijing Er Shang Group Beijing Sanyuan Food Co., Ltd Purchase of goods

内容: Beijing heiliu animal husbandry technology Purchase of goods Co., Ltd Other related units Beijing Shounong Grain Reserve Co., Ltd. Beijing shounong Food Group Co., Ltd Purchase of goods Storage fee Display and exhibition fees

内容: (2) Sale of goods/ provision of labor services Related Party

内容: Shanghai shounong Investment Holding Co., Ltd Beijing Ershang Wangzhihe Food Co., Ltd. Feed branch of Beijing Sanyuan Seed Industry Technology Co., Ltd

内容: Sale of goods Sale of goods Sale of goods

内容: Hebei shounong Modern Technology Co., Ltd Agricultural

内容: Beijing Shounong Consumption Assistance Innovation and Entrepreneurship Center Co., Ltd. Beijing Guchun Food Co., Ltd Hebei Luanping Huadu Foodstuff Co., Ltd. Beijing Ershang Xijie Foodstuff Co., Ltd. Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd Huairou Brewing Factory of Beijing Liubiju Food Co., Ltd Beijing food supply office No.34 supply department Co., Ltd Beijing Haidian Xijiao grain and oil supply station Co., Ltd Beijing shounong Management Co., Ltd Supply Chain

内容: Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods

内容: Beijing Zhujun grain and oil supply Co., Ltd Beijing Children soldiers grain and oil supply Co., Ltd Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd Beijing Guchun rice Co., Ltd Beijing baijiayi Food Co., Ltd Beijing Sanyuan Food Co., Ltd Beijing Jingliang e-commerce Co., Ltd Beijing junchengyuan grain and purchase and Marketing Co., Ltd oil

内容: Sale of goods Sale of goods Sale of goods Sale of goods Sale of goods

内容: Beijing Hongyuan Lijun grain and oil supply Co., Ltd Beijing maliandou special supply station Co., Ltd Beijing Liangguan Grain and Oil Supply Co., Ltd. Beijing huaduyukou poultry Co., Ltd

内容: Other-related units Shanghai Sunlon Investment Holding Co., Ltd Beijing Capital Agriculture Group Co., Ltd Beijing Guchuan Food Co., Ltd Beijing Grain Group Co., Ltd Beijing Academy of Food Science Beijing jinggrain Dagu grain and Oil Trade Co., Ltd

内容: Sale of goods Provision of services Provision of services Provision of services Provision of services Provision of services Provision of services

内容: Related-party transactions for purchasing and saling goods and provision and acceptance of labor services: The price of a related-party transaction shall be equal to the price charged for a unrelated-party transaction that is same as or similar to such related-party transaction. B. Related-party lease (1) If the Company is the lessor, Pricing Lease Income Lease Income Lease Name of Type of Lease basis of Recognized in Recognized in termination Lessee Leased Asset start date rental the Current the Prior date income Period Period Beijing Guchuan Food Co., Ltd. Beijing Jingliang E-commerce Co., Ltd. Beijing Jingliang E-commerce Co., Ltd Total

内容: House leasing January 1, 2020 December 31,2020 Market price 13,333,333.30

内容: Pricing basis of rleasing fee Lease Expense Recognized in the Current Period Lease Expense Recognized in the Prior Period

内容: Lease Expense Recognized in the Current Period

内容: Lease Expense Recognized in the Prior Period

内容: Beijing Daxing National Grain Purchasing & House leasing Market price 1,935,963.30 2,110,200.00 Storage Warehouse Beijing Shounong House leasing Market price 1,803,247.58 1,297,946.86

内容: Foodstuff Storage Beijing Grain Group Co., Ltd. Beijing Nanyuan Plant Oil Factory Beijing Grain Group Head Company Total

内容: 3. Other Related-party Transactions Guaranteed Party Related-party Transaction Current Amount 177,183.60 98,847.10 20,654.60 1,589,080.65 396,546.91 Last Term Amount 60,359.34 52,527.02

内容: Beijing Dahongmen Heating fee, cleaning Foodstuff Storage fee, electricity fee Beijing Shounong Utilities, property fees Development Co., Ltd. Beijing Haidian Xiangshan Conference service fees Rest House Beijing Shounong Food Interest income Group Finance Co., Ltd. Beijing Guchuan Food C Brand royalty o., Ltd. Beijing Guchuan Rice Co., Brand royalty Ltd. Beijing Jingliang Dongfang Grain and Oil Trading Co., Brand royalty Ltd. Tianjin Juxiang Technology Technical Service Fee Co., Ltd.

内容: (3)Remuneration for key management staff Current Amount (Unit: ten Item thousand yuan)

内容: Last Term Amount (Unit: ten thousand yuan)

内容: 7. Related-party Receivables and Payables (1) Receivables Ending Balance Item Related-party Book Balance

内容: Beginning Balance Book Balance Provision for Bad Debts

内容: Group Finance Co., Ltd Feed Branch of Beijing

内容: Sanyuan Seed Technology Co., Ltd. Beijing Consumption Innovation Ltd. Beijing Guchun Food Co., Ltd Shanghai Sunlon Investment HOLDINGS Ltd. Beijing Ershang Xijie Shounong Assistance and

内容: Foodstuff Co., Ltd. Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd Hebei Ltd. Beijing Zhujun grain and oil supply Co., Ltd Beijing baijiayi Food Co., Ltd Beijing Dongfang Shounong Modern

内容: Agricultural Group Supply Chain Management Co., Ltd. Beijing Guchun rice Co., Ltd Beijing Junyuan grain and oil purchasing and

内容: Ending Balance Item Related-party Book Balance

内容: Beijing Ershang Wangzhihe Food Co., Ltd. Beijing shounong Supply

内容: Chain Management Co., Ltd Beijing Haidian Xijiao grain and oil supply station Co., Ltd Beijing Liangguan grain and oil supply Co., Ltd Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd Beijing department food No.34 supply supply

内容: department Co., Ltd Beijing Jingliang 56,600.00

内容: e-commerce Co., Ltd Beijing zidibing grain and oil supply Co., Ltd Beijing shounong Xiangshan Conference Center Co., Ltd

内容: (2) Payables Item Contract liability Payables Related-party

内容: Shanghai Sunlon HOLDINGS Ltd. Investment

内容: Beijing Guchun Food Co., Ltd Beijing Er Shang Mo Qi Zhong Hong Foods Co., Ltd. Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd Beijing Sunnyum Foods Co., Ltd. Beijing Sanyuan Food Co., Ltd

内容: Beijing Grain Group Co., Ltd. Shanghai Sunlon HOLDINGS Ltd. Investment

内容: Beijing Nanyuan vegetable oil factory Co., Ltd Beijing Jingliang Co., Ltd e-commerce

内容: 8. Related-party Commitments The Company has no related-party commitments this year. XII. Share based payment There are no share based payments incurred this year for the company.

内容: The company's subsidiary Beijing Jingliang Food Co., Ltd. as the guarantor is as follows:Guaranteed Party Beijing Tianweikang Oil Marketing Center Co., Ltd. Jingliang (Tianjin) Industry Co., Ltd. Grain and Oil Amount Guaranteed 122,070,00 0.00 300,000,00 0.00 Actual guarantee amount 36,000,000.00 Effective Date Due Date Effective from the date of deliberation and approval of the 2020 general meeting of shareholders, for a period of one year From the date of signing the agreement on designated delivery warehouse (designated warehouse) of Dalian Commodity Exchange to two years after the termination of the agreement on designated delivery warehouse (designated warehouse) of Dalian Commodity Exchange. From the date of signing the agreement on designated delivery warehouse (designated warehouse) of Dalian Commodity Exchange to two years after the termination of the agreement on designated delivery warehouse (designated warehouse) of Dalian Commodity Exchange. 2 years after the maturity of the debt as agreed in the main contract Effective from the date of deliberation and approval of the general meeting of shareholders in 2020 to the date of convening the general meeting of shareholders in 2021 From the date of drawing or actual occurrence of the first financing under the financing letter to two years after the maturity date of the latest one of all the financing provided by the bank during the occurrence of the guaranteed debt under the financing letter. From March 2, 2021 to March 2, 2026 Whether the Guarantee Has Been Fulfilled No

内容: Effective from the date of deliberation and approval of the general meeting of shareholders in 2020 to the date of convening the general meeting of shareholders in 2021

内容: XIV. Events after the Balance Sheet Date 1. Distribution of Profits As of the financial report date of the company, the 24th meeting of the ninth board of directors in 2022 approved that no profit distribution will be conducted in 2021, which still needs to be approved by the general meeting of shareholders. XV. Other Important Matters 1. Annuity Plan Basic information of annuity: Beijing Jingliang Food Co., Ltd., Beijing Guchun Oil Co., Ltd., Beijing Eisen Lubao Oil Co., Ltd., Beijing Jingliang Oil Co., Ltd. and Beijing Guchun Bread Food Co., Ltd. of the company participated in the enterprise annuity plan of Beijing shounong Food Group Co., Ltd., and formulated the implementation rules of their respective enterprises under the annuity plan. The name of the annuity plan is Ping An Jinxiu life enterprise annuity plan; the trustee and account manager are ping an Endowment Insurance Co., Ltd.; the trustee is China CITIC Bank Co., Ltd. 2. Information of Divisions (1) Basis of determination and accounting policies for reporting of divisions The Company's businesses consist of food processing, oil and grease and so on according to its internal organizational structure, management requirements and internal reporting system. The Company's management regularly evaluates the operating results of these divisions to determine the allocation of resources to them and evaluate their performance. The information reported by divisions should be disclosed according to the accounting policies and measurement standards adopted by such divisions when they are reporting to the management. These measurement bases should be consistent with the accounting and measurement bases for preparation of financial statements. (2) Reporting of the financial information of divisions

内容: Operating profit Net profit attributable to parent company Total assets Total liabilities

内容: 3. Lease The lessee shall disclose the following information in relation with the lease. Item Interest expense Short-term lease payments charged to current profit or loss Lease costs for low-value assets recognized in current profit or loss Amount 158,835.45 5,686,616.63

内容: Item Variable lease payments not included in the measurement of lease liabilities Income from sublease of right-to-use assets Total cash outflows related to leases Gains and losses related to sale and leaseback transactions

内容: XVI. Notes to Main Financial Statement Items of Parent Company 1. Accounts Receivable （1）Disclosed according to aging Aging Within 1 Year (including 1 year) Among them: Within credit period (within 3 months) Credit period to 1 year 1 to 2 years (including 2 years) 2 to 3 years (including 3 years) 3 to 4 years (including 4 years) 4 to 5 years (including 5 years) More than 5 years Sub-total Less: Allowance for bad debts Total （2）Disclosed according to the method of provision for bad debt Ending Balance Type(s) Book Balance Amount Separate provision for bad debts Portfolio provision for bad debts Among them: Portfolio 1 Total （Continued） Type(s) Beginning Balance Book Balance Bad Debt Provision Book Value 108,000.00 108,000.00 108,000.00 100.00 107,400.00 100.00 107,400.00 -- 107,400.00 99.44 99.44 -600.00 600.00 600.00 Ratio(%) Bad Debt Provision Amount Provision Ratio(%) Book Value 3,000.00 105,000.00 108,000.00 107,400.00 600.00 Ending Balance

内容: Amount Separate provision for bad debts Portfolio provision for bad debts Among them: Portfolio 1 Total 126,420.00 126,420.00 126,420.00

内容: Portfolio provision for bad debts: Portfolio provision item: aging portfolio Ending Balance Name Within 1 Year (including 1 year) Among them: Within the credit period (within 3 months) Credit period to 1 year 1 to 2 years 2 years) 2 to 3 years 3 years) 3 to 4 years 4 years) 4 to 5 years 5 years) (including (including (including (including

内容: Beginning Balance Provision Accounts Bad Debt Provision Ratio receivable Provision Ratio

内容: 108,000.00 Total (3) Details of bad debt provision

内容: Amount changes for the period Addition Withdrawal or reversal Write-off Other changes

内容: (4) Receivables actually written off in the current period

内容: During the period, the board of directors approved to write off the Beijing Branch of Hainan Jingliang Holding Co., Ltd., and to write off the uncollectible receivables. （5）Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period Debtors Hainan pearl river pipe pile co. LTD Total 2. Other Receivables A. Overview (1) Classification Item Interest receivable Dividends receivable Other receivables Total 2. Other Receivables (1) Disclosed according to aging Aging Within 1 Year (including 1 year) Among them: Within credit period (within 3 months) Credit period to 1 year 1 to 2 years (including 2 years) 2 to 3 years (including 3 years) 3 to 4 years (including 4 years) 4 to 5 years (including 5 years) More than 5 years Sub-total Less: Allowance for bad debts Total 93,197.85 180,093,197.85 93,197.85 180,000,000.00 Ending Balance 180,000,000.00 180,000,000.00 180,000,000.00 180,000,000.00 103,341.26 103,341.26 Ending Balance Beginning Balance Ratio of the total Book balance balance of accounts receivable(%) 108,000.00 108,000.00 100.00 100.00 Aging 4-5 years, more than 5 years —— Is it Bad debt related provision No 107,400.00 —— ——

内容: (2) Classification of other receivables by nature of funds Nature of Funds Intercourse Funds of Units Employee Receivables Personal Intercourse Funds Petty Cash Others Total (3) Details about allowance for bad debt Stage 1

内容: Book Balance at End of Period 180,000,000.00

内容: Book Balance at Beginning of Year 3,333.00

内容: Expected credit loss for the whole period (with credit impairment) 50,000.00

内容: Expected credit loss in the next 12 months 5,263.59

内容: Amount on January 1, 2021 Carrying amount on January 1, 2021 during this period: ——Get into Stage 2 ——Get into Stage 3 ——Get back to Stage 2 ——Get back to Stage 1 Provision for the period Reverse for the period Transfer for the period Write off for the period Other changes Balance at December 31, 2021

内容: (4) Details of bad debt provision Type Carrying Amount changes for the period Carrying

内容: amount at the beginning Bad debt provision Total

内容: amount at Addition Withdrawal or reversal Write-off Other changes the end

内容: (5)Other receivables actually written off in the current period Itam Receivables actually written off Amount 50,000.00

内容: During the period, the board of directors approved to write off the Beijing Branch of Hainan Jingliang Holding Co., Ltd., and to write off the uncollectible other receivables. (6) Other receivables according to top five of balance at end of period collected by debtors Name of Organization

内容: Beijing Grain Stock Co., Ltd. Yan Yan Pai Feng Zhongwei Cui Xiaohong Liu Total

内容: Related party borrowing Reserve fund Reserve fund Reserve fund Reserve fund ——

内容: Within 3 months 2-3 years 2-3 years 2-3 years 2-3 years ——

内容: Proportion in overall ending balance of other receivables (%)

内容: Ending Balance Item Book Balance Investment in subsidiaries Total Provision for Impairment Beginning Balance Provision for Impairment

内容: Current Ending Provision Balance of for Provision for Impairme Impairment nt

内容: Beijing Jingliang Food Co., Ltd. Zhejiang little prince Food Co., Ltd Jingliang rural complex construction and operation (Xinyi) Co., Ltd Jingliang (Caofeidian) Agricultural Development Co., Ltd. Total

内容: 4. Operating income and operating costs 1. Details of operating income and operating costs Item Core business Other businesses Total 591,060.56 591,060.56 341,162.52 341,162.52 1,181,687.83 1,181,687.83 Current Amount Income Cost Last Term Amount Income Cost

内容: 5. Income from investment Sources of investment income Long term equity investment income calculated by cost method Others Total 461,597,751.35 506,874.91 206,400,562.23 Current Amount 461,597,751.35 Last Term Amount 205,893,687.32

内容: XVII. Supplementary Information 1. According to the requirements of the CSRC's "Explanatory Announcement on Information Disclosure of Companies Publicly Issuing Securities No. 1 - Non-recurring Gains and Losses", the non-recurring gains and losses during the reporting period shall be reported

内容: 1. Details of non-recurring profit and loss in the reporting period Details of non-recurring profit and loss (1) Gains and losses on disposal of non current assets (2) Government subsidies included in the current profits and losses (closely related to the business of the enterprise, except the government subsidies enjoyed according to the national unified standard quota or quantitative) (3) In addition to the effective hedging business related to the normal business of the company, the profit and loss from changes in fair value arising from holding trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, as well as the investment income from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other debt investments (4) Other non-operating income and expenses other than the above (5) Other profit and loss items that meet the definition of non recurring profit and loss Total non recurring profit and loss 12,975,160.94 Less: amount affected by income tax Non recurring profit and loss after deducting the influence of income tax Including: non recurring profit and loss attributable to the owner of the parent company Non recurring profit and loss attributable to minority shareholders 2. Return on equity and earnings per share Current Profit Net profit attributable to the Company's common shareholders Net profit attributable to common shareholders after deduction of non-recurring gains and losses Weighted Return on Average Equity (ROAE) (%) 7.27 6.95 EPS Basic EPS 0.28 0.27 Diluted EPS 0.28 0.27 3,214,422.14 9,760,738.80 9,036,938.63 723,800.17 Amouont -208,369.12 5,397,695.52 Note

内容: Hainan Jingliang Holdings Co., Ltd. 31 March 2022