Hebang Biotechnology 2025 Annual Report

Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Company code: 603077 Company abbreviation: Hebang Biotech Bond code: 113691 Bond abbreviation: Hebang Convertible Bonds

Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Important tips

1. The company’s board of directors, directors and senior managers guarantee the authenticity, accuracy and completeness of the contents of the annual report and that there are no false records, misleading statements or major omissions, and bear individual and joint legal liability.

2. All directors of the company shall attend the board meeting.

3. Sichuan Huaxin (Group) Accounting Firm (Special General Partnership) issued a standard unqualified audit report for the company.

4. Zeng Xiaoping, the person in charge of the company, Wang Jun, the person in charge of accounting work, and Wang Jun, the person in charge of the accounting department (accounting supervisor), declare that they guarantee the authenticity, accuracy and completeness of the financial report in the annual report.

5. The profit distribution plan for the reporting period or the plan for converting public reserve funds into share capital passed by the board of directors

As audited by Sichuan Huaxin (Group) Accounting Firm (Special General Partnership), the company's net profit attributable to shareholders of the listed company in 2025 was -536,406,669.49 yuan. As of December 31, 2025, the company's parent company's final undistributed profit in the statement was 3,269,436,559.98 yuan.

In view of the fact that the company's net profit attributable to shareholders of listed companies in 2025 is negative, and in combination with the "Articles of Association" and the company's future development plan and capital needs, in accordance with the "Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends by Listed Companies", "Self-Discipline Supervision Guidelines for Listed Companies No. 1 - Standardized Operations" and other relevant regulations, the company has formulated a profit distribution plan for 2025 as follows: no profit distribution, no transfer of public reserve funds to share capital.

As of the end of the reporting period, the parent company had unrecovered losses and its impact on the company’s dividends and other matters

□Applicable √Not applicable

6. Risk Statement for Forward-Looking Statements

√Applicable □Not applicable

The company's future plans and strategies, as well as the analysis or calculation of the future, need to rely on objective conditions to prevent major changes. These plans do not constitute the company's substantive commitment to investors. Investors are advised to pay attention to investment risks.

7. Whether there is any non-operating use of funds by controlling shareholders and other related parties

No

8. Whether there is any violation of the prescribed decision-making procedures in providing external guarantees

No

9. Whether more than half of the directors cannot guarantee the authenticity, accuracy and completeness of the annual report disclosed by the company

No

10. Major Risk Warning

1. The risk of fluctuations in the company's performance caused by market price fluctuations: The company's products are highly market-oriented products. According to the company's financial analysis, the gross profit margin of the company's products is greatly affected by the sales price. Therefore, product price fluctuations will cause fluctuations in the company's performance; at the same time, the company's products

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The company's raw material prices fluctuate with policies or markets, which will cause the company's product costs to fluctuate. If product sales prices do not fluctuate simultaneously, the company's performance will fluctuate.

2. The risk of the company's projects under construction not achieving expected benefits: The company's projects under construction include Guang'an Bimeida's annual output of 500,000 tons of diglyphosate project, Indonesia's 350,000 tons of annual glyphosate project, Hanyuan Liujiashan's annual output of 1.2 million tons phosphate rock development project, Australia's Wonarah phosphate mine development project, etc. If the projects do not meet expected benefits, there will be certain uncertainty in the company's performance growth.

3. The company's future operating outlook in this report is the management's prediction and plan based on the company's current operating conditions, macroeconomic policies and market conditions, and does not constitute a performance commitment made by the company.

11. Others

□Applicable √Not applicable

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Directory

Section 1 Interpretation......................................................................................................................................5

Section 2 Company Profile and Main Financial Indicators................................................................................................5

Section 3 Management Discussion and Analysis................................................................................................12

Section 4 Corporate Governance, Environment and Society......................................................................................47

Section 5 Important Matters................................................................................................................................59

Section 6 Changes in Shares and Shareholders...................................................................................73

Section 7 Bond-related situations.................................................................................................................79

Section 8 Financial Report......................................................................................................................81

Contains the signatures of the person in charge of the company, the person in charge of accounting work, and the person in charge of the accounting department (accounting supervisor)

and stamped financial statements.

Catalog of documents available for inspection: The original audit report containing the seal of the accounting firm and the signature and seal of the certified public accountant.

The original copies of all company documents and announcements publicly disclosed on the website designated by the China Securities Regulatory Commission during the reporting period.

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Section 1 Interpretation

1. Definition

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

Commonly used word definitions

Hebang Biotechnology, the Company refers to Sichuan Hebang Biotechnology Co., Ltd.

Hebang Co., Ltd. refers to Sichuan Hebang Co., Ltd., the company's former name, which was changed to its current name on July 31, 2015. Hebang Mining refers to Sichuan Hebang Mining Group Co., Ltd., a wholly-owned subsidiary of the company.

Liujiashan Phosphate Mine refers to Sichuan Hebang Liujiashan Phosphate Mining Co., Ltd., a wholly-owned subsidiary of Hebang Mining Hebang Phosphate Mine refers to Sichuan Hebang Phosphate Mine Co., Ltd., a wholly-owned subsidiary of Hebang Mining Hebang Tamu Mining refers to Xinjiang Hebang Tamu Mining Co., Ltd., a wholly-owned subsidiary of Hebang Mining and Bangkudi Mining refers to Xinjiang Hebangkudi Mining Co., Ltd., a wholly-owned subsidiary of Hebang Mining Qianwei Hebang Mineral Products refers to Qianwei Hebang Mineral Products Co., Ltd., a wholly-owned subsidiary of Hebang Mining, and Bangniya Mining refer to Xinjiang Hebangniya Mining Co., Ltd., Hebang Mining’s wholly-owned subsidiary Mianning Hebang Mining refers to Mianning Hebang Mining Co., Ltd., Hebang Mining’s wholly-owned subsidiary Hebang Shangwuji Mining refers to Huili City Hebang Shangwuji Mining Co., Ltd., Hebang Mining’s wholly-owned subsidiary Hebang Kapan Mining refers to Xinjiang Hebang Kapan Mining Co., Ltd., a wholly-owned subsidiary of Hebang Mining Leshan Hebang Mine refers to Leshan Hebang Mining Engineering Co., Ltd., a wholly-owned subsidiary of Hebang Mining Hebang Investment (Hong Kong) refers to Hebang Biological (Hong Kong) Investment Co., Ltd., a wholly-owned subsidiary of Hebang Mining Hebang Salt Mine refers to Sichuan Hebang Salt Mine Co., Ltd., a wholly-owned subsidiary of the company

Jianwei Hebang Mining refers to Leshan Jianwei Hebang Mining Co., Ltd., the company’s wholly-owned subsidiary Jingyan Hebang Mining refers to Leshan Jingyan Hebang Mining Co., Ltd., the company’s wholly-owned subsidiary Leshan Hebang New Materials refers to Leshan Hebang New Materials Technology Co., Ltd., the company’s wholly-owned subsidiary Hebang Agricultural Science refers to Leshan Hebang Agricultural Technology Co., Ltd., the company’s wholly-owned subsidiary

Guang'an Bimeida refers to Guang'an Bimeida Biotechnology Co., Ltd., Bimeida Salt Mine, a wholly-owned subsidiary of Hebang Nongke. Refers to Guang'an Bimeida Salt Mine Co., Ltd., a wholly-owned subsidiary of Guang'an Bimeida. Guang'an Xinmei Water refers to Guang'an Xinmei Water Co., Ltd., Yongjiang Industrial, a wholly-owned subsidiary of Hebang Nongke. Refers to Leshan Yongjiang Industrial Co., Ltd., a wholly-owned subsidiary of the company.

Runsen Gas Station refers to Leshan Runsen Compressed Natural Gas Co., Ltd., Yongjiang Gas Station, a wholly-owned subsidiary of Yongjiang Industrial. Refers to Leshan Wutongqiao District Yongjiang Gas Station Co., Ltd., a wholly-owned subsidiary of Yongjiang Industrial. Australia P.P.I. refers to PAN PACIFIC INDUSTRIES PTY LTD, the company's wholly-owned subsidiary Australia P.P.R. refers to PAN PACIFIC RESOURCES PTY LTD, the company's wholly-owned subsidiary Jianwei Shuncheng refers to Qianwei Hebang Shuncheng Salt Co., Ltd., a wholly-owned subsidiary of the company

Zigong Hebang Chemical refers to Zigong Hebang Chemical Co., Ltd., a wholly-owned subsidiary of the company

Indonesia Hebang refers to PT HEBANG BIOTECHNOLOGY INDONESIA, the company’s wholly-owned subsidiary Hebang Fire Protection refers to Leshan Hebang Fire Protection Technology Co., Ltd., the company’s wholly-owned subsidiary

Zhichuang Chemical refers to Leshan Zhichuang Chemical Machinery Co., Ltd., a wholly-owned subsidiary of the company. Hebang Bio-Nutrient refers to Sichuan Hebang Biological Nutrition Co., Ltd., a wholly-owned subsidiary of the company. Hebang Shipping refers to Sichuan Hebang Shipping Co., Ltd., a wholly-owned subsidiary of the company.

Wujun Solar Energy refers to Sichuan Wujun Solar Energy Co., Ltd., the company’s holding subsidiary

Chongqing Wujun refers to Wujun Chongqing Solar Energy Co., Ltd., a wholly-owned subsidiary of Wujun Solar Energy Wujun Photovoltaic Engineering refers to Luzhou Wujun Photovoltaic Engineering Construction Co., Ltd., a wholly-owned subsidiary of Wujun Solar Energy Wujun Electrical Design refers to Sichuan Wujun Electric Power Engineering Design Co., Ltd., a wholly-owned subsidiary of Wujun Photovoltaic Engineering Wujun Electrical Construction refers to Sichuan Wujun Electric Power Engineering Construction Co., Ltd., a wholly-owned subsidiary of Wujun Photovoltaic Engineering Fuxing Technology refers to Anhui Fuxing New Energy Technology Co., Ltd., a holding subsidiary of Wujun Solar Energy

Israel S.T.K. Group, a company registered in Israel, a company-owned subsidiary, mainly engaged in S.T.K.

Biopesticides R&D, production and sales

AEV refers to Avenira Limited, a company listed on the Australian Exchange

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BCT means BULLCREST MINERAL RESOURCES LIMITED

Chengdu New Chaoyang refers to Chengdu New Chaoyang Crop Science Co., Ltd.

Zhongming Environment refers to Sichuan Zhongming Environmental Management Co., Ltd.

Leshan Commercial Bank refers to Leshan Commercial Bank Co., Ltd.

Xinshengjia refers to Xinshengjia Transportation Construction Co., Ltd. of Mabian Yi Autonomous County Dekang Agriculture and Animal Husbandry refers to Sichuan Dekang Agriculture and Animal Husbandry Food Group Co., Ltd.

Burqin Yema refers to Burqin Yema Mining Co., Ltd.

NUF refers to Nufarm Limited, a company listed on the ASX

Hebang Group refers to Sichuan Hebang Investment Group Co., Ltd., the controlling shareholder of the company, Weifangba Coal Mine. It refers to Sichuan Hebang Investment Group Co., Ltd., Jianwei Weifangba Coal Mine, and Jixiang Coal, a branch of Hebang Group. It refers to Sichuan Hebang Group Leshan Jixiang Coal Co., Ltd., Shoubao Coal, a controlling subsidiary of Hebang Group. It refers to Leshan Jianwei Shoubao Coal Co., Ltd., a wholly-owned subsidiary of Hebang Group.

Sichuan Salt Industry Group Co., Ltd., as of the end of the reporting period, held 5.94% of the company's Sichuan Salt Industry Index

shares

The 500,000-ton bisglyphosate project refers to the Guang’an Bimeida annual output of 500,000-ton bisglyphosate project.

350,000 tons of glyphosate project refers to the Indonesian annual output of 350,000 tons of glyphosate project

Mabian Yanfeng Phosphate Mine refers to the Mabian Yanfeng Phosphate Mine Development Project with an annual output of 1 million tons.

Hanyuan Liujiashan Phosphate Mine refers to the Hanyuan Liujiashan Phosphate Mine Development Project with an annual output of 1.2 million tons.

Wonarah Phosphorus Australia

Refers to the Wonarah Phosphate Mine Development Project in Australia

Mine

Annual output of 8GW photovoltaic packaging materials

Refers to Chongqing Wujun 1,900t/d photovoltaic glass, 8GW photovoltaic module packaging project materials and products project

10GW ultra-efficient monocrystalline solar cell

Refers to Fuxing Technology’s 10GW N+ type ultra-efficient monocrystalline solar wafer project solar wafer project

Reporting period and period refer to 2025

Yuan/10,000 yuan/100 million yuan refers to RMB/10,000 yuan/100 million yuan

China Securities Regulatory Commission refers to China Securities Regulatory Commission

Company information disclosure designated website, Shanghai Stock Exchange official website Shanghai Stock Exchange website refers

(www.sse.com.cn)

Section 2 Company Profile and Main Financial Indicators

1. Company information

The Chinese name of the company Sichuan Hebang Biotechnology Co., Ltd. The Chinese abbreviation of the company Hebang Biotechnology

The company’s foreign name is Sichuan Hebang Biotechnology Co.,Ltd. The company’s foreign name is abbreviated HBC

The legal representative of the company Zeng Xiaoping

2. Contact person and contact information

Secretary of the Board of Directors Name of Securities Affairs Representative Jiang Siying Yuan Quan

Contact address Building C6, No. 8 Guangfu Road, Qingyang District, Chengdu City, Sichuan Province Building C6, No. 8 Guangfu Road, Qingyang District, Chengdu City, Sichuan Province Telephone 028-62050230 028-62050230 Fax 028-62050290 028-62050290 Email [email protected] [email protected]

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3. Basic situation introduction

Company registered address: Miaba Village, Niuhua Town, Wutongqiao District, Leshan City

Historical changes of the company’s registered address None

Company office address: Miaba Village, Niuhua Town, Wutongqiao District, Leshan City

Postal code for company office address 614801

Company website www.hebang.cn

Email [email protected]

4. Information disclosure and preparation location

"China Securities News"/"Shanghai Securities News"/"Securities Times"/"Media name and website address of securities companies disclosing annual reports"

Coupon Daily》

The website of the stock exchange where the company discloses its annual report is www.sse.com.cn

The company's annual report is prepared at the company's board of directors office

5. Brief introduction of company stocks

Company Stock Profile

Stock type Stock listing exchange Stock abbreviation Stock code Stock abbreviation before change A shares Shanghai Stock Exchange Hebang Biotechnology 603077 Hebang Shares

6. Other relevant information

Name Accounting firm hired by Sichuan Huaxin (Group) Accounting Firm (Special General Partnership)

Office address: 28th Floor, Jinmao Lidu South, No. 18 Ximianqiao Street, Wuhou District, Chengdu (within the territory)

Name of the signing accountant: Zhang Lan, He Shoufu, Quan Fan

Name Capital Securities Co., Ltd.

Office address 11-21, Building A, Building 13, No. 5 Anding Road, Chaoyang District, Beijing

layer

Signed sponsor representative

Zhou Fei, Kan Daoping

Perform continuous supervision duties during the reporting period Name

The original continuous supervision period is from November 19, 2024 to 2025.

December 31st. Since the funds raised by the company from the issuance of convertible corporate bonds to unspecified objects have not been fully used during the period of continuous supervision, the sponsor will continue to perform continuous supervision on the management and use of the company's raised funds.

Responsibilities until the funds raised are used up

7. Main accounting data and financial indicators in the past three years

(1) Main accounting data

Unit: Yuan Currency: RMB

This period is better than last year

Main accounting data 2025 2024 2023

Increase/decrease over the same period (%)

Operating income 7,187,510,832.55 8,547,476,550.13 -15.91 8,824,107,811.82 No deduction related to main business

related business income and not

7,076,030,910.51 8,412,366,723.35 -15.89 8,706,955,825.64 Income with commercial substance

Operating income after entry

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Total profit -630,842,405.14 -65,683,562.06 Not applicable 1,535,965,520.99 belongs to listed company shares

-536,406,669.49 31,464,685.07 -1,804.79 1,283,243,893.34 Dong’s net profit

Attributable to listed company shares

Net profit after deducting non-recurring gains and losses -526,321,542.31 23,489,841.95 -2,340.63 1,235,467,036.66

Cash generated from business activities

1,076,236,611.15 467,931,387.17 130.00 80,331,784.33 Net cash flow

The end of this period compared with the previous year

End of 2025 End of 2024 Increase or decrease at the end of the same period (End of 2023

%)

Attributable to listed company shares

17,876,970,748.79 18,626,392,431.87 -4.02 19,575,342,485.28 Dong’s net assets

Total assets 28,209,443,637.49 29,649,734,539.88 -4.86 24,542,434,122.85

(2) Main financial indicators

This period is the same as last year

Main financial indicators 2025 2024 2023

Period increase or decrease (%)

Basic earnings per share (yuan/share) -0.0672 0.0038 -1,868.42 0.1474 Diluted earnings per share (yuan/share) -0.0522 0.0037 -1,510.81 0.1474Basic earnings per share after deducting non-recurring gains and losses

-0.0660 0.0029 -2,375.86 0.1419 Income (yuan/share)

Decrease by 3.12 hundred

Weighted average return on equity (%) -2.95 0.17 6.56

equinox

The weighted average after deducting non-recurring gains and losses decreased by 3.02 points

-2.90 0.12 6.32 Return on equity (%) percentage points

Explanation of the company's main accounting data and financial indicators for the previous three years at the end of the reporting period

√Applicable □Not applicable

The company's net profit and earnings per share attributable to shareholders of listed companies have declined significantly compared with the same period last year, mainly due to the decline in sales and prices of the company's joint alkali products, glass and photovoltaic products, and glyphosate products due to changes in macroeconomics and market supply and demand.

8. Differences in accounting data under domestic and foreign accounting standards

(1) Net profits in financial reports disclosed in accordance with both international accounting standards and Chinese accounting standards are attributable to shareholders of listed companies.

Differences in net assets

□Applicable √Not applicable

(2) The net profits in financial reports disclosed in accordance with both overseas accounting standards and Chinese accounting standards are attributable to shareholders of the listed company.

Differences in net assets

□Applicable √Not applicable

(3) Explanation of differences between domestic and foreign accounting standards:

□Applicable √Not applicable

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9. Main financial data by quarter in 2025

Unit: Yuan Currency: RMB First quarter Second quarter Third quarter Fourth quarter

(January to March) (April to June) (July to September) (October to December) Operating income 1,725,715,319.77 2,195,337,126.74 2,005,467,579.31 1,260,990,806.73 Attributable to shares of listed companies

12,517,312.95 39,254,210.42 41,337,014.44 -629,515,207.30 Dong’s net profit

Attributable to listed company shares

Net profit after deducting non-recurring profits and losses 8,483,951.04 38,496,109.07 42,710,886.28 -616,012,488.70

Cash generated from business activities

-54,591,408.70 200,060,948.07 164,666,988.01 766,100,083.77 Net cash flow

Explanation of differences between quarterly data and disclosed periodic report data

□Applicable √Not applicable

10. Non-recurring profit and loss items and amounts

√Applicable □Not applicable

Unit: Yuan Currency: RMB Note (if applicable

Non-recurring profit and loss items (2025 amount, 2024 amount (2023 amount))

See Note 7 for details.

Gains and losses on disposal of non-current assets, including accrued

-4,361,435.60 73. Asset disposal 1,168,756.89 23,427,736.02 Offset portion of asset impairment provision

income

Government subsidies included in the current profit and loss, but with the company

Closely related to normal business operations and in compliance with national policies

16,803,551.51 10,273,521.87 11,967,001.05 Policy provisions, enjoyment in accordance with determined standards, and public

Except for government subsidies that have a lasting impact on the company's profits and losses

Charges levied on non-financial enterprises included in current profits and losses

3,472,348.16

Fund occupation fee

The impairment of accounts receivable that has been individually tested for impairment is 888,731.78. For details, please refer to Note 7.

1,182,226.60 75,710.99 Reserved for transfer back 5. Accounts receivable

Other non-operating income other than the above items and -27,652,469.28

-505,291.95 2,305,048.96 expenses

Other profit and loss items that meet the definition of non-recurring profits and losses

22,403,072.91 items

Less: Impact on income tax 388,673.56 1,959,025.36 9,048,565.93 Impact on minority shareholders’ equity (after tax) -1,152,819.81 2,185,344.93 3,353,147.32 Total -10,085,127.18 7,974,843.12 47,776,856.68

The company identifies items not listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public: Non-Recurring Gains and Losses" -

If it is a non-recurring profit and loss item with a significant amount, and the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Gains and Losses" are defined as recurring profit and loss items, the reasons should be explained.

□Applicable √Not applicable

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11. Business income deduction table

Unit: Yuan Currency: RMB

Items Specific deductions for the current year Specific deductions for the previous year

Amount of operating income 7,187,510,832.55 8,547,476,550.13 Total amount of deduction items in operating income 111,479,922.04 135,109,826.78 Proportion of total amount of deduction items in operating income to operating income (%) 1.55 / 1.58 /

1. Business income unrelated to the main business

1. Other business income other than normal operations. Such as leasing fixed assets

property, intangible assets, packaging, sales materials, materials used for non-

Income from monetary asset exchange, operation of entrusted management business, etc. 111,479,922.04 Other business income 135,109,826.78 Other business income is included, and although it is included in the main business income, it is part of the normal business income of the listed company.

Income other than regular operations.

2. Income from quasi-financial business that does not meet qualifications, such as interest on lending funds

Revenue; newly added financial products in this fiscal year and the previous fiscal year

Income generated from business, such as guarantees, commercial factoring, small loans

Income from loans, financial leasing, pawns and other businesses is the main sales force.

Except for financial leasing business carried out for operating products.

3. Income from new trading business in this fiscal year and the previous fiscal year

student income.

4. Related party transaction assets that have nothing to do with the listed company’s existing normal business operations

student income.

5. Income from the beginning of the period to the date of merger of subsidiaries merged under the same control

Enter.

6. Income arising from businesses that have not formed or are difficult to form a stable business model.

income.

Subtotal of business income unrelated to main business 111,479,922.04 135,109,826.78

2. Income without commercial substance

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1. Income generated from transactions or events that do not significantly change the risk, timing distribution or amount of an enterprise's future cash flows.

2. Income generated from transactions without real business. For example, false income achieved through self-transaction, false income generated by using Internet technology or other methods to construct transactions, etc.

3. Income generated from businesses whose transaction prices are unfair.

4. Income generated from subsidiaries or businesses acquired through business combinations in this fiscal year at obviously unfair consideration or in a non-trading manner.

5. Income related to non-standard audit opinions in the audit opinion.

6. Income generated from other transactions or matters that are not commercially reasonable.

Income subtotal without commercial substance

3. Amount after deducting other income that has nothing to do with the main business or has no commercial substance 7,076,030,910.51 8,412,366,723.35

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12. Companies with equity incentives and employee stock ownership plans may choose to disclose net profits after deducting the impact of share-based payments.

√Applicable □Not applicable

Unit: Yuan Currency: RMB

This period is the same as last year

Main accounting data 2025 2024 2023

Period increase or decrease (%)

Excluding the impact of share-based payment 1,308,568,163.

-522,879,385.46 54,540,969.16 -1,058.69

Net profit after 01

13. Items measured at fair value

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item name of profit for the current period Beginning balance Closing balance Change for the current period

Amount of investment in other equity instruments that affects the amount

341,106,630.13 302,439,475.60 -38,667,154.53

Capital

Receivables financing 1,211,259,933.57 350,670,396.62 -860,589,536.95 -2,616,679.04Other non-current finance

465,278,185.83 465,278,185.83 0.00 1,120,000.00Assets

Total 2,017,644,749.53 1,118,388,058.05 -899,256,691.48 -1,496,679.04

14. Others

□Applicable √Not applicable

Section 3 Management Discussion and Analysis

1. Business status of the company during the reporting period

Since 2024, the company has established an adjustment to the industrial structure and developed with high quality.

In conjunction with the "Ore Prospecting Action" proposed by the country, we seized this development opportunity and actively invested in the layout.

As of the disclosure date of this report, the Company has held a total of 51 mineral rights.

Combined with the high-quality development of the company's existing industries, we can achieve technological innovation, resource advantages, and cost advantages.

The company is building 500,000 tons of diglyphosate and 350,000 tons of glyphosate. The entire plant is being implemented as planned and is scheduled to be put into production in 2027. United Alkali has been in operation for 17 years since it was put into production in 2009. This time it implemented technical transformation and reduced costs by 15%.

The technical transformation of Wujun Glass has combined two lines into one line, enlarging the scale, reducing energy consumption, reducing personnel by 40%, and reducing costs by 12%.

We are conducting feasibility studies on the smelting of precious metals, including smelting tantalum, niobium and tin.

We have obtained the approval document for the 600,000-ton methionine project, the environmental impact assessment has been announced, and the land will be delivered in July 2026, covering an area of ​​1,000 acres.

We have established a shipping team to improve logistics and achieve cost control of minerals and Indonesian bisglyphosate.

We plan to implement mergers and acquisitions projects related to the company's industrial chain.

During the reporting period, the company’s main business conditions are as follows:

(1) Mining sector

During the reporting period, the company's mining sector achieved a total operating income of 433.2558 million yuan and a total net profit of 185.954 million yuan.

1. Operation status of ongoing minerals

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During the reporting period, 2 salt mine mining rights and 1 phosphate mine mining right directly held by the company have been put into normal production. The specific operating data are as follows:

Serial number Resource type Product Sales volume (10,000 standard cubic meters/10,000 tons)

1 Salt mine brine 1,558.04

2 Phosphate rock (Yanfeng) Phosphate rock 68.82 Note: Mata Salt Mine and Luocheng Salt Mine are both owned by Hebang Salt Mine, a wholly-owned subsidiary of the company, so they are consolidated and accounted for as a single reporting entity here.

2. Mineral development progress and planning

The company actively deploys overseas mineral resources. The existing overseas mineral resources are distributed in Africa and Australia, covering a variety of scarce resources such as phosphate ore, gold mine, lithium ore, tin ore, etc., providing important resource support for the development of the company's mineral sector. The basic situation, current progress and 2026 work plan of each overseas mineral industry are as follows:

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Preface Invested Equity Mining Rights Certificate Exploration Rights Resource Amount

Resource type Geographical location Type of mineral rights Conversion from exploration to mining Current progress 2026 work plan number Amount Ratio Number of books Area (10,000 tons)

Mining engineering plan implementation Phase I of the project (annual output: 700,000 tons) Wonarah Northern Australia Mining rights + 1,499 square meters

1 - - 53,300.00, mining equipment is being ordered, mining engineering construction is planned, and phosphate rock 1,495.52 territorial state exploration rights square kilometers are planned within the year.

49% Machinery ready completed

million Australian dollars

Jundee Gold, Western Australia, 1,232 square meters, detailed survey plan has been initially determined.

2 Exploration Rights - - - Start detailed exploration Australia State Square Kilometers To be implemented

2 explorations have been conducted

Two tin mines have completed the "exploration transfer" of exploration rights. After the reporting period to this report

mine, has been submitted to the government for approval, and the application process of "planned mining" was disclosed. On the disclosure date, 7 new tin mines were added.

252.2 Planned to obtain mining rights in October 3 tin ore block investment in 13 phases, one of which applied - Mineral Exploration Permit;

Square Kilometer Certificate;

As of now, Nigeria boasts 30% (passed). The application has been accepted and the land for tin ore washing has been settled.

The procurement of washing equipment was implemented as planned. This report shows the actual payment of mining rights by BCT holding subsidiaries in La State and Oyo.

buy

Deri, held by Zhouzhou and Nasala companies); related payments for exploration rights

Invest 50% in Wazhou and Bauchi (passed) Surface surveying and mapping has been implemented, and the Ministry

1,785.73 State, Plateau State BCT holds) trenching and drilling in sub-regions

Continue to implement the work of 730.4 square meters worth US$10,000 in different regions and steps;

4 Lithium mining blocks 25 - - Exploration work and square kilometers in high potential areas After the reporting period to this report

On the day of the disclosure of detailed exploration work in this area, 3 new lithium

Mine prospecting license

Note: The "2026 Work Plan" listed in this report is only an internal control guideline indicator and does not constitute a commitment to workload and work results. The company may make adjustments to the corresponding plan based on market changes and internal work arrangements. Investors are advised to pay attention to investment risks.

In addition to the above-mentioned overseas mineral resources, the company has 8 other domestic minerals that are being developed as planned. The basic situation, current progress and 2026 work plan of each mineral are as follows:

Amount invested Equity Mining rights Resource amount

Serial number Resource type Geographical location Current progress 2026 work plan

(10,000 yuan) Ratio Type (10,000 tons)

Ya'an, Sichuan Province Accelerates the construction progress of underground tunnel projects, 1 Liujiashan Phosphate Mine 106,051.77 100% Mining Rights 5,917.80 Underground projects are under construction, and engineering mines are produced

Hanyuan County, City Implemented as planned

Burqin, Xinjiang

Burqin Silica has been put into production and will achieve ore sales in 2025. It is planned to reach an annual output of 1 million tons. 2 5,200.00 County Kostec 40% Mining Rights 1,775.00

Mine production target of 257,000 tons

town

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Xinjiang Aktao Exploration work proceeds as planned, preliminary exploration work is completed, and the next step is determined 3 Kudi Copper Mine 11,037.97 100% exploration rights -

County construction progress is about 50% detailed survey plan

Detailed exploration work on some fruitful ore bodies in Akto, Xinjiang is proceeding as planned, and preliminary exploration work

4 Tamu Lead-Zinc Mine 12,371.16 100% Exploration Rights - Exploration, the remaining ore bodies need to be further inspected. The progress of the work is about 50%

Certification and control work

The exploration work is carried out as planned, and the preliminary exploration work continues to be carried out, and based on the preliminary exploration results 5 Kaba Silver Mine 1,787.64 Xinjiang Minfeng County 100% exploration rights -

About 20% of the progress has been made and the detailed survey area has been determined

Wollongong lead and zinc exploration work is carried out as planned, and the preliminary exploration work continues to be carried out. According to the preliminary exploration results 6 10,584.06 Xinjiang Minfeng County 100% exploration rights -

About 20% of the mining progress has been made and the detailed exploration area has been determined.

Sichuan Provincial Council has completed the preliminary exploration work and determined the next step 7 Shangwuji Copper Mine 4,865.74 100% exploration rights - the preliminary exploration work is under implementation

County exploration plan

Mianning, Sichuan Province Completed preliminary exploration work and carried out further 8 Myanmar Sawa Gold Mine 8,519.91 100% exploration rights - Preliminary exploration work is being implemented

County detailed survey

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(2) Chemical sector

The company's main chemical products include 1.25 million tons/year joint alkali (sodium carbonate, ammonium chloride), 200,000 tons/year diglyphosate, 60,000 tons/year glyphosate, 100,000 tons/year liquid methionine, as well as natural gas supply and pipeline transportation, oil product sales, and gas sales.

During the reporting period, the performance of each product in the company's chemical segment was mixed, showing a differentiated development trend of "liquid methionine growth, diglyphosate/glyphosate rebound, pipeline and oil and gas sales remained stable, and joint alkali products were under pressure". During the reporting period, the company's chemical segment achieved a total main business income of 5,959,541,800 yuan, a year-on-year decrease of 9.53%.

Among them, liquid methionine was the core profit contributor during the reporting period - methionine products will continue to maintain high prosperity throughout 2025, and the supply and demand pattern will generally show a good trend. The production unit and sales team actively cooperated, and the domestic and overseas sales markets blossomed. The output, sales volume, and number of customers all reached new highs, and the average sales price also increased significantly compared with the previous year.

The prices of diglyphosate and glyphosate products increased in the second and third quarters of 2025, but fell back in the fourth quarter. Overall, the gross profit margins of glyphosate and diglyphosate gradually returned to normal levels. At the same time, the company increased shipments, so the profitability of this business improved significantly year-on-year.

The production and operation of natural gas pipeline transmission, refined oil and natural gas sales businesses are normal, and profitability levels remain basically stable.

During this reporting period, both the demand and the market price of Lianjia products were at the bottom. Although the company has reduced production costs through refined management and various measures, due to the current sluggish market conditions, the sales price of Lianjia products is still lower than the company's manufacturing cost, causing large losses to the company.

(3) Photovoltaic glass and other sectors

The company's main products in this segment are 1,900t/d photovoltaic glass, 465,000 tons/year glass, 8.3 million ㎡/year low-E coated glass, 2GW components, 1.5-2GW photovoltaic silicon wafers and EPC engineering business. During the reporting period, the aforementioned products achieved a total operating income of 1,240.7705 million yuan, a year-on-year decrease of 44.81%.

Although some backward production capacity has been cleared in the domestic photovoltaic industry in 2025, overall, there is still structural overcapacity and the industry is still in a capacity clearing cycle. Starting from the second half of the year, some links in the industrial chain have shown positive signs of gross profit recovery and narrowing of losses.

During the reporting period, except for photovoltaic glass, which was affected by changes in market conditions, the sales price fluctuated greatly. The prices of other products, such as ordinary glass products such as architectural glass, silicon wafers and component products, all fluctuated at low levels, and the overall price showed a loss.

(4) Projects under construction

In addition to mining projects (see the relevant chapters above for details on progress), the company's main projects under construction are the 500,000-ton diglyphosate project and the 350,000-ton glyphosate project in the chemical sector. The two projects are being implemented as planned. As of the disclosure date of this report, the details of the project are as follows:

1. Project technology research and development

R&D content Status Whether it meets the standards or not Successfully

The new process experimental device operates stably and meets the standards successfully.

Core process AI control, stable operation, compliance with standards, success

New process, material verification, stable operation, compliance with standards, success

New catalyst development completed and achieved standards successfully

2. Project process and configuration optimization were successful

Regarding project technology and configuration, the company took the following measures during the reporting period:

(1) Sort out the process relationship through repeated clarification and response;

(2) Repeatedly communicate with market customers to optimize product finalization;

(3) Promote the upsizing of equipment;

(4) Realized industrial continuous production;

(5) For the 500,000-ton bisglyphosate project, the total investment determined in the preliminary feasibility study report was 16.7 billion yuan. Through technological innovation, large-scale equipment and other means, as well as the decline in market prices of engineering construction materials, the total investment was adjusted to approximately 7 billion yuan.

3. As of the disclosure date of this report, project investment status

Number of contracts signed Total amount of contracts signed Amount paid

Project name

(share) (10,000 yuan) (10,000 yuan)

500,000 tons of diglyphosate project 630 241,478 120,845

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350,000 tons of glyphosate project 68 62,742 19,385

4. Planned construction period

Through the complete preparation and sorting out of the construction of the 500,000-ton diglyphosate project in 2025, the overall project progress is on track, and the construction period plan is as follows:

Time Project Plan Progress Actual Progress

In April 2026, the installation project started. As of the disclosure date of this report, the project installation project has started.

December 2026 Project progress 70% -

June 2027 Project Completion -

October 2027 Production start -

The construction period plans for the 350,000-ton glyphosate project and the 500,000-ton diglyphosate project are consistent.

Description of the company’s new important non-main business during the reporting period

□Applicable √Not applicable

2. Industry conditions of the company during the reporting period

(1) Mining industry

1. Brine

Brine refers to liquid minerals with a salt content of more than 5%. It is a groundwater or surface water body with extremely high salinity. The company has its own salt mine and is engaged in the brine mining business. The brine produced is mainly used in the production of the company's bisglyphosate and joint alkali products, and is also supplied externally. Brine is a geo-resource product and is usually transported by pipeline. Limited by the transportation radius and pipeline infrastructure, the regional market has strong exclusivity, and there are basically no homogeneous substitute products in the same region.

2. Phosphate rock

Phosphate rock refers to the general term for phosphate minerals that can be utilized economically. It is widely used in a wide range of industries, mainly agriculture and electronics industries. About 80% of the fertilizers and pesticides used in agriculture based on phosphate rock have no recycling mechanism and are natural non-renewable resources. Our country recognized this earlier and has introduced various policies since 2016, positioning it as "strategic non-metallic mineral resources". On February 18, 2026, the U.S. government invoked the Defense Production Act and signed an executive order to officially list elemental phosphorus and glyphosate as key strategic national defense materials.

The market price of phosphate rock has increased by 93% in Hubei in 10 years and by 155% in Sichuan in 4 years. In the past two years, the price has fluctuated slightly.

Chart: Phosphate ore market price trends

Data source: Baichuan Yingfu

(2) Chemical industry

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1. Glyphosate, diglyphosate

(1) Glyphosate

Glyphosate is the single pesticide with the largest market share in the world. It is a herbicide with the advantages of high efficiency, low toxicity, and broad-spectrum biocidal properties. It accounts for approximately 30% of the global herbicide market and 15% of the total global pesticide usage.

Glyphosate is the herbicide of choice for major field crops such as corn, soybeans, cotton, and wheat. It is also suitable for agricultural production during the rotation period and for weeding in orchards.

With the development of agricultural science and technology, the global planting area of ​​genetically modified crops has increased by more than 120 times in the past 30 years, and has continued to grow in the past five years.

Judging from the latest industry trends, glyphosate has jumped from a traditional agricultural product to a strategic product involving food and agricultural security that is of great concern to major economies around the world.

On February 18, 2026, the U.S. government signed an executive order citing the Defense Production Act, officially classifying glyphosate and elemental phosphorus as "critical defense supplies."

After more than ten years of industry reshuffle, the glyphosate industry has gradually concentrated its production capacity towards leading companies. With the technological advancement of large manufacturers and the continuous optimization of the industrial chain, the concentration of the glyphosate industry will further increase, with domestic manufacturers providing approximately 70% of the world's production capacity. At present, the industry has three main technical lines from the raw material side: the glycine method based on coal chemical industry, the bisglyphosate method using the refining product diethanolamine as raw material, and the bisglyphosate method using natural gas as raw material. Different preparation methods, from the perspective of raw material supply stability, are the best in China.

There are certain differences in product quality between the bisglyphosate method and the glycine method for preparing glyphosate.

Affected by differences in raw material routes, the cost of glyphosate, which uses the refining product diethanolamine as raw material, not only fluctuates with high energy and logistics costs caused by crude oil prices and geopolitical conflicts, but is also affected by the superposition of high-level operations of core raw materials such as yellow phosphorus, leading to intensified price fluctuations. Currently, affected by the price fluctuations of crude oil and refining products caused by geopolitical conflicts in the Middle East, as of the disclosure date of this report, the transaction price of glyphosate (97% of the original drug) has reached 35,000 yuan/ton.

Chart: Glyphosate market price trends

Data source: Wind (2) Diglyphosate

Diglyphosate is a key intermediate of glyphosate. Glyphosate can be produced through a one-step oxidation reaction. Its output ratio to glyphosate is about 1.5:1, that is, about 1.5 tons of diglyphosate can produce 1 ton of glyphosate. The demand changes for diglyphosate are mainly affected by the downstream glyphosate market, and the price trend is basically consistent with that of glyphosate.

2.Methionine

Methionine is one of the basic units of protein and an essential amino acid for animals. It cannot be synthesized by the animal body and must be supplemented through external intake.

The company's methionine products are mainly used in the breeding industry.

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The methionine currently sold on the market mainly includes solid methionine and liquid methionine. Compared with solid methionine, liquid methionine has obvious cost advantages, and it also has the good characteristics of uniform mixing and less separation. In addition, because liquid methionine is acidic, it can inhibit pathogenic bacteria such as Salmonella and Escherichia coli in feed, which is in line with the development trend of "restriction of resistance and substitution of resistance" in the feed industry. The company is the second company in China to achieve mass production of liquid methionine, and has reached industrial cooperation relationships with many well-known feed and breeding companies at home and abroad.

In the next 10 years, global methionine demand will have a clear foundation for growth.

The core driver is that upper-middle-income and lower-middle-income countries continue to promote the upgrading of animal protein consumption, especially the growth of poultry meat consumption, given their huge population base.

Since methionine is a key limiting amino acid in poultry feed, the future animal protein consumption structure will tilt towards poultry meat, which will continue to support the growth of methionine demand.

The situation regarding per capita meat consumption levels is as follows:

Dimension Population Per capita meat consumption Analysis of per capita consumption level

Already at a high level, the future will be more about stock replacement, not a high-income country. About 1.418 billion, about 58kg/year.

Main sources of new demand

The largest in size, it will be an upper-middle-income country in global meat consumption in the next 10 years, about 2.818 billion, about 40kg/year

Incremental core undertaking area

The largest population, the current consumption base is low, and it will catch up with middle- and lower-income countries in the future, about 3.121 billion, about 8kg/year

Large space

Constrained by purchasing power in the short term, but the population will still expand in the long term. Low-income countries: about 625 million, about 7kg/year

Zhang Zhizhu

Source: World Bank, OECD-FAO From the above data, it can be seen that compared with high-income countries, emerging markets have a large population base and low per capita consumption levels. Driven by income growth, their demand for animal protein intake has broad room for improvement.

The main raw material of methionine also comes from refining and chemical products. Affected by the fluctuation of crude oil prices and the operating rate of the refining and chemical industry, the current price of methionine is also on a rapid upward trend. As of the disclosure date of this report, the company's highest transaction price is close to 38,000 yuan/ton.

Chart: Liquid methionine market price trend

Data source: Wind

3. Sodium carbonate, ammonium chloride

(1) Sodium carbonate

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Sodium carbonate, also known as soda ash, is one of the important basic chemical raw materials and is widely used in glass manufacturing, lithium carbonate production, detergent synthesis, metallurgy, papermaking, printing and dyeing, food and other fields. The production processes of soda ash mainly include ammonia-alkali method, combined alkali method and natural alkali method. The company uses the combined soda ash method to produce soda ash.

During the reporting period, due to the pressure on the downstream construction industry and the photovoltaic industry, as well as the cost of trona alkali production capacity and cost expectations, soda ash prices were operating at low levels and under pressure.

Chart: Soda ash market price trend

Data source: Choice (2) Ammonium Chloride

Ammonium chloride is a nitrogen fertilizer among chemical fertilizers. More than 95% of ammonium chloride in my country is used for agricultural fertilizers, of which more than 90% is used to make compound fertilizers. my country is the main producing area of ​​ammonium chloride in the world. At present, ammonium chloride manufacturers are basically joint-alkali production enterprises, and the industry concentration is high.

In 2025, domestic co-alkali production capacity will continue to expand, but affected by the decline in the average operating rate of co-alkali devices, the supply of ammonium chloride has shrunk. However, in terms of demand, due to the impact of low urea prices, domestic demand for ammonium chloride was weak during the reporting period. In contrast, overseas market demand has grown strongly. According to data from the General Administration of Customs, my country's exports of ammonium chloride in 2025 will be 2.3145 million tons, a year-on-year increase of 50.19%.

During the reporting period, the market price of ammonium chloride fluctuated and dropped to a bottom of around 400 yuan/ton. Starting from late November, the price increased due to favorable support such as the start-up of downstream compound fertilizer companies and the successive start of winter storage. Since March 2026, the domestic ammonium chloride market has heated up due to factors such as geopolitical conflicts in the Middle East pushing up international urea prices and the concentrated release of spring plowing demand.

Chart: Ammonium chloride market price trends

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Data source: Choice

(3) Photovoltaic glass and other glass industries

1. Photovoltaic glass

Photovoltaic glass is mainly used for packaging photovoltaic modules. The photovoltaic panel glass covers the top of the solar cells and has good wind pressure resistance and the ability to withstand temperature changes between day and night. The photovoltaic glass backsheet is an important part of the double-glass module. Compared with single-glass modules, double-glass modules have obvious advantages in zero water permeability, excellent mechanical properties, less hot spot damage, reduced module temperature, and low PID probability.

Overall, the photovoltaic industry is still on a growth trend. According to data from the National Energy Administration, the country's newly installed photovoltaic capacity will be 317 million kilowatts in 2025, a year-on-year increase of approximately 14%. However, as photovoltaic manufacturing capacity expansion exceeds market demand, the industry as a whole is under pressure. During the reporting period, the photovoltaic glass industry continued to proactively reduce production, and supply continued to shrink. On the demand side, in the first half of the year, supported by the downstream rush to install, photovoltaic glass prices rebounded in stages; however, as centralized procurement demand came to an end, photovoltaic glass consumption fell back in the second half of the year, putting downward pressure on prices.

Chart: Photovoltaic glass market price trend

Data source: Choice

In the short term, although the photovoltaic glass industry is still at the bottom of the cycle, with the launch of new domestic projects and the release of overseas orders, module production scheduling is expected to pick up, driving a marginal improvement in photovoltaic glass demand. Benefiting from cost support and expectations for the peak season, photovoltaic glass prices are expected to stabilize and rebound.

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In the medium to long term, the photovoltaic glass industry is evolving from an overcapacity cycle to a structural optimization stage. On January 8, 2026, the Ministry of Finance and the State Administration of Taxation jointly issued the "Announcement on Adjusting the Export Tax Refund Policy for Photovoltaic and Other Products" (No. 2, 2026), which clarified that the export value-added tax refund for photovoltaic and other products will be canceled from April 1, 2026, involving 249 products such as silicon wafers, components, and inverters. This policy will directly increase the cost of module exports and promote the re-pricing of all links in the industrial chain. As photovoltaic glass is a core auxiliary material for module packaging, its industry competition logic will also shift from "price competition" to "technology competition" and "value competition." Companies with backward technology, high energy consumption, and homogeneous products will face the pressure of elimination. At the same time, the direction of global energy transformation has not changed, and the long-term trend of increasing the proportion of new energy will still provide broad development space for photovoltaic glass. As backward production capacity accelerates, industry concentration continues to increase, overseas market expansion and technological upgrading accelerate, the industry structure is expected to see significant improvements, creating new development opportunities for photovoltaic glass companies with cost and technology advantages.

2. Other glass

In addition to photovoltaic glass, the company's other glass products include original glass and deeply processed smart glass, special glass, etc. As one of the basic raw materials, flat glass is mainly used in construction, home decoration, photovoltaic power generation, transportation, home appliances and other fields. Through processes such as coloring, surface treatment, and compounding, flat glass can be made into glass products with different colors and special properties, such as Low-E coated glass, tempered glass, insulating glass, etc.

During the reporting period, the contradiction between supply and demand for flat glass became apparent, putting downward pressure on prices. On the supply side, although some companies have reduced production through cold repairs to relieve pressure, the problem of overcapacity in the industry still exists. On the demand side, affected by the year-on-year decline in completed real estate area, demand in the glass industry continues to be under pressure. Overall, the contradiction between supply and demand in the glass industry is still large, and price recovery still depends on the further clearing of production capacity. Chart: Flat glass market price trends

Data source: Wind

Although demand and prices are under pressure, positive signals are emerging from the cost and supply sides of the glass industry. On the cost side, with the escalation of geopolitical conflicts in the Middle East, as a high-energy-consuming industry, the cost support of the glass industry has further strengthened; on the supply side, cold repairs in the industry have accelerated, and supply pressure has continued to ease. Under the combined effect of cost support and supply contraction, flat glass prices are expected to bottom out and recover.

3. Discussion and analysis of operating conditions

During the reporting period, although the external environment was complex and changeable and the market prices of some of the company's products were at a low period, the company still firmly promoted various business elements of the company in accordance with the development strategy. At each specific work level, ideal work performance has also been achieved.

(1) Integrate mineral resources and establish a mining group to promote professional operations

In 2025, the company established a mining group company to achieve professional, systematic and resource-intensive operations in the mining sector.

The business layout of the Mining Group covers two major mining sectors, domestic and overseas, with a complete internal structure. It consists of eight core departments including the Design Institute, Exploration Division, Infrastructure Department, and Production Technology Department, realizing a full industry chain layout from mineral rights acquisition, exploration and design to mine construction, and production operations.

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After the establishment of the Mining Group, it has always followed the core work guidelines of "one mine, one theory, one mine, one method" to carry out various businesses, and adhered to the development principle of adapting measures to local conditions and adapting to mines. During the project advancement, geological engineers went deep into the mine site to obtain first-hand survey data, and formed a professional exploration team to firmly grasp the initiative of the survey; the design team and the exploration team advanced the work simultaneously, completing the mine site selection, overall layout planning, and feasibility study of the mining, excavation, machinery, maintenance, and operation systems while the exploration was underway. Based on the differences in the origin of different mineral types, mineral seam distribution and hydrogeological conditions, "differentiated" and "customized" development solutions are tailor-made for each mining project to ensure the scientific and efficient development of mineral resources.

During the reporting period, the progress of the acquisition of mineral rights resources and exploration and mining projects has been disclosed in the previous chapter.

The company's mining sector is already planning to gradually implement smelting projects to achieve effective industrial chain integration. During the reporting period, the company purchased an indicator production capacity of 25,000 tons/year of yellow phosphorus for 185 million yuan, and plans to build a yellow phosphorus factory in Qianwei County, Leshan City. After the company is put into operation, the company will be able to independently control all aspects from phosphate ore mining to yellow phosphorus production, intermediate product bisglyphosate, and final product glyphosate technical manufacturing, and the resource industry chain will be more complete. The project is currently being effectively promoted.

At the same time, the company is also planning a precious metal smelting project, and initially plans to develop tin ore resources for deep processing; tin ore is associated with tantalum, niobium and other rare metals, and the company is simultaneously studying enrichment plans and planning for the next step of smelting. At present, the company has established a professional smelting project team to maximize the benefits of the company's mineral resources.

(2) Lay out the logistics system and establish a shipping team

Based on the company's future bulk logistics needs involving overseas mineral product sales and domestic bisglyphosate products arriving in Indonesia. The company has specially set up a shipping company to break through the difficult links that affect bulk product transactions. It also prevents the company's global logistics needs for future products from being uncontrollable due to factors such as transportation capacity and freight rates.

Currently, the company is planning and deploying its shipping business based on the transportation capacity needs in the next 2-3 years.

During the reporting period, the company has established a complete shipping team, including ship maintenance, transportation, captain and other key positions, which have gradually arrived and started working; the application for relevant transportation licenses is being advanced in an orderly manner according to the process; and has started ship procurement work, and plans to complete the purchase of 2-3 ships within the year. In the future, the company will continue to improve the operation system of the shipping team, gradually expand the scope of shipping business, promote the deep integration of shipping with mineral development and chemical production business, and further enhance the company's core competitiveness and global operation capabilities.

(3) Focus on the core and fully promote project construction

During the reporting period, the company's 500,000-ton diglyphosate project and 350,000-ton glyphosate project made a series of progress - see the aforementioned "Projects Under Construction" for details. Among them, through the optimization of investment in the 500,000-ton bisglyphosate project, the total investment in the project dropped from the original plan of 16.7 billion yuan to about 7 billion yuan. The details are as follows:

Order Optimization Items Investment Savings

Specific optimization measures or reasons Corresponding examples of specific devices or processes

No. Item Type Amount Estimation should be applied through the innovative process of “recycling and application”

The successfully developed new process not only brings practicality, but also reduces wastewater discharge by 85%, improves environmental protection, improves the yield of the new process, and saves operating costs. Investment in treatment equipment will be reduced accordingly

During research and development, the emissions of waste water, gas and waste materials were reduced, and a tubular continuous reaction method was adopted, which was faster than the original time

Savings on equipment investment: The batch reaction method reduces the number of equipment by about 1.5 billion yuan by 50%

Formaldehyde reactor 9 into 3, about 200 million yuan, about 80 million yuan, tail gas boiler 3 in 1

Yuan

About 20 million

Large equipment: ion resin tower 2-in-1

2 Choose to configure advanced large-scale equipment Yuan

stylization

Ice machine refrigeration system 9-in-1 is about 100 million yuan. Comparing multiple units (sets) requires: structures,

The supporting investment in piping, power distribution, instruments, valves, steam distribution and other equipment has been significantly reduced by about 500 million yuan.

Eliminate the evaporation and concentration of 32% liquid caustic soda to 50%. About RMB 10,000,000 will be used to repeatedly "clarify" the entire process.

Excellent process equipment

3 Qing-Response”, innovating traditional design concepts

Chemical adjustment of about 80 million yuan, elimination of redundant unnecessary equipment and elimination of non-necessary light salt water concentration equipment

Yuan

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Order Optimization Items Investment Savings

Specific optimization measures or reasons Corresponding examples of specific devices or processes

No. Item type Amount estimation process requires device configuration and traditional design Cancel unnecessary spare machines, spare pipes, and spare lines

The surplus of approximately 300 million yuan brings huge savings to project investment, etc.

Approximately 320 million cancellation of diglyphosate drying and decolorizing units

Customers need to be market-oriented and integrate downstream customers Yuan

Looking for research needs, adjust product form, cancel the hydrochloric acid chlorine production device, direct sales deputy

About 700 million yuan of product hydrochloric acid

Taking into account the sluggish situation of the joint alkali industry, the investment in salt mines and salt production equipment has been cancelled. About 800 million yuan has been integrated to consolidate the industry and make full use of the existing resources in Leshan Park.

Industry resources, production capacity and resource allocation, adjust the project department, cancel synthetic ammonia, joint alkali comprehensive utilization device, approximately 2 billion yuan divided into non-major device investment

In the current market environment, the overall raw materials

For example: steel and cement prices have dropped, equipment

Market changes. Prices and installation costs are better than those in the previous version.

6 Installation and engineering construction costs have dropped; materials research reports have dropped significantly, which is about 2.1 billion yuan, giving

Procurement costs fall

Project brings huge savings

Note: The above table only lists the larger expenditures in the savings from this investment, and there are still items with relatively trivial amounts that are not listed one by one.

(4) Strengthen the cultivation of internal strength and improve the quality and efficiency of daily operation and management

During the reporting period, in the face of the severe challenges of the international and domestic economic situation and the uncertainty of the market environment, the company always focused on cost control and value creation as its core purposes, starting from the three dimensions of production, sales, safety and environmental protection, constantly improving the operation and management system, improving the level of refined management, ensuring that the company's daily operations are carried out smoothly and orderly, and the core operating indicators maintain a good development trend.

1. Production end: Strictly control costs and achieve ultimate cost control

Cost control always runs through the entire process of the company's production and operations. During the reporting period, the company identified each production unit as the responsible entity for cost control, and coordinated the cost control work of the entire value chain of production, supply, sales, and management. The production process focuses on precise ingredients and core process indicators. Through the establishment of a refined production control system, raw material consumption and production energy consumption are strictly controlled, the production process is continuously optimized, and product yields and production efficiency are improved. After continuous management, control and optimization, the production cost control of the company's products in production has been reached to the extreme during the reporting period, effectively improving the market competitiveness of the products.

Specifically, during the reporting period, the production costs of alkaline products decreased by 5.70% year-on-year, the production costs of diglyphosate and glyphosate products decreased by 3.47% and 2.57% year-on-year respectively, the production costs of methionine products decreased by 6.21% year-on-year, and the production costs of photovoltaic glass products decreased year-on-year.

22.43%, and the production cost of float glass and other finished glass products fell by 9.04% year-on-year.

2. Sales side: innovation incentives and building a profit-oriented assessment system

In order to stimulate the vitality of the sales team and enhance market development capabilities, the company implements a market-oriented incentive assessment policy of "timely rewards, timely punishments, and timely substitutions" within the sales team. It uses war zones as assessment units and builds a performance-graded assessment system centered on profit indicators. The assessment indicators not only cover sales quantity, but also comprehensively include quality indicators such as sales price, payment collection rate, number of lost customers, number of new customers, etc., to achieve the assessment orientation of "emphasis on both quantity and quality" in sales work. Under the complete assessment and incentive system, the company's sales team's market development enthusiasm and service capabilities have been greatly improved. During the reporting period, the company's product sales achieved excellent results in terms of sales volume, price and new customer development, and its market share increased steadily.

3. Safety and environmental protection: stick to the red line and build a strong defense line for safe production and operation

The chemical sector is the company's core business pillar, and safety and environmental protection are insurmountable red lines for the company's business development. The company deeply realizes that the root cause of safety and environmental accidents lies in the lack of employee training and the inadequate implementation of systems and standards. Based on this, during the reporting period, the company placed safety and environmental protection management in a prominent position, paid close attention to the training of all employees on the safety and environmental protection standard system and institutional specifications, and improved the safety and environmental protection awareness and operating standards of all employees through systematic and regular training. At the same time, the company has further improved the performance appraisal system, implemented a one-vote veto system for major safety and environmental protection incidents in the performance appraisal of all branches and subsidiaries, and used rigid assessment to force the implementation of the safety and environmental protection system, effectively building the company's line of defense for safe production and green operations.

4. Analysis of core competitiveness during the reporting period

√Applicable □Not applicable

(1) Technical advantages

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According to the company's strategic goals, one end of the "two poles" is: the high-tech end.

1. In the chemical business sector

The company has established a chemical research institute within the company and cooperates with many external experts, universities, and design institutes to implement innovative process research and development; at the same time, based on the wave of the fourth technological revolution, the company also jointly develops AI industrial applications with first-class service providers at home and abroad.

The aforementioned innovative processes and new technologies will be used in the company's new 500,000-ton diglyphosate project and 350,000-ton glyphosate project. Based on the above-mentioned technological leading advantages, the company is fully confident that the completed diglyphosate and glyphosate projects will have global leading competitive advantages in terms of cost, quality, environmental protection and safety control.

2. Mining sector

In the mining sector, the company is not limited to the organization of mining resources, but has also built a corporate organizational structure oriented towards technological leadership. The company has established a mining development organizational structure with the technology research and development department as the core, which is directly connected to the forefront of global mining technology and is responsible for technological research and innovation in the entire process of mining exploration, mining, mineral processing, and processing.

As of the disclosure date of this report, the company's mining sector has introduced 21 expert-level talents, bringing together top mining engineers, geology, metallurgy and interdisciplinary technical experts in the industry at home and abroad. These professionals form multiple technical research teams, focusing on exploration, mine design, mining, washing and other business links.

In terms of production organization and management, the company relies on technological advantages to achieve refined management and efficient operations. For example, through the application of mine geographical information system (GIS) and Internet of Things (IoT) technology, production data of each operation link of the mine can be monitored in real time, including ore grade, equipment operating status, energy consumption, etc. The technical team conducts in-depth analysis of these data to provide the production department with a basis for optimizing production plans, thereby improving the efficiency of mining and mineral processing and reducing production costs.

Through the above company organizational structure design with technology leadership as the core, the company's mining sector can make full use of the advantages of technological innovation in current and future development to achieve coordinated development of the entire industry chain from technology research and development, production operations, market expansion to talent protection, thereby making the company's mining business globally competitive.

(2) Quality advantage

Through the control of resources, the application of new process technologies and control management systems, the company's product quality has always been at a high level. For mining products, in addition to optimizing mining plans through the application of high and new technologies to bring high-grade output of raw ore, the company also optimizes the washing process to effectively utilize and realize benefits from low- and medium-grade mineral resources.

The AEV invested by the company owns Australia's largest high-quality phosphate rock resource - Wonarah Phosphate Mine, which has more than 500 million tons of phosphate rock resources. The mineral has superior components and is rare in the world: low arsenic, cadmium-free, low iron aluminum ore. Its natural components without washing can fully meet the demand for electronic-grade high-end phosphate rock and the EU's strict import standards. After systematic sampling and laboratory analysis of the core resource area of the mineral deposit, the sampling characteristics of the material components of the mine are as follows:

Ingredient Unit Detection Value

PO Phosphorus pentoxide % 33.5

2 5

As Arsenic ppm <5

Mg Magnesium % 0.08

Fe Iron % 0.36

FeO % 0.55

2 3

SiO Silica % 14.15

Al Aluminum % 1.12

AlO Alumina % 2.17

2 3

F Fluorine % 3.2

LOI Loss on ignition % 1.43

At the chemical manufacturing level, the company's bisglyphosate plant is the only company in the world that adopts full-process integration and large-scale plant manufacturing. As a downstream product of bisglyphosate, the company's glyphosate products have high purity, with a product mass fraction of ≥97% and fewer impurities and by-products. It is one of the few products in the market that can meet the latest EU glyphosate standards.

The company is the second company in the country to achieve mass production of liquid methionine. It has obtained multiple domestic and foreign system certifications such as ISO9001, ISO22000, HACCP, FAMI-QS, HALAL, and Kosher KOSHER. The total dry matter content of the company's liquid methionine products is ≥ 88%, and its product quality has been widely recognized by downstream customers.

The company's soda ash products are the main supplier to most large enterprises in the sales area, whether they are downstream lithium carbonate manufacturing enterprises or the glass and detergent industries.

The company has been deeply involved in the glass industry for many years and has deep technical reserves. The company's LOW-E coated glass is produced using internationally advanced offline LOW-E coating technology. It is mainly used for energy-saving building exterior walls, curtain wall glass, high-end residences, etc. The products meet the energy-saving requirements at home and abroad.

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Quality requirements for environmentally friendly glass products. The company's photovoltaic glass products are mainly used for the packaging of photovoltaic modules. They have excellent properties such as high efficiency, low energy consumption, and high light transmittance. With high-quality product quality and after-sales service, they have gained wide recognition and praise in the market.

(3) Cost advantages of building a resource industry chain

The company relies on its own core raw materials of salt mines, phosphate mines and the advantages of natural gas production areas in southwest China. On this basis, it has formed: salt mining - brine business, natural gas supply - sodium carbonate and ammonium chloride;

Photovoltaic glass, smart glass, special glass, Low-E coated glass - ultra-efficient silicon wafer - photovoltaic modules - distributed photovoltaic EPC business chain;

Salt mine (phosphate rock) mining--brine (phosphate rock) business, natural gas supply--diglyphosate--glyphosate business chain;

Natural gas supply-methionine business chain.

The vertical and horizontal development model based on resource advantages is combined with the introduction of first-class industrial technology and independent innovation to form product quality and cost advantages. Combined with the company's service and delivery guarantee, it is the guarantee of the company's continued competitiveness.

(4) Asset structure advantages

At the beginning of this economic downturn, the company proactively predicted the potential crises that might be triggered by the economic downturn, proactively abandoned the "high leverage-high growth" expansion model adopted by traditional enterprises during the industry boom stage, firmly implemented the "lowering leverage" strategy, and built a robust capital structure with low debt as the core. With forward-looking risk management, the company has maintained significant investment and financing resilience in this economic downturn, creating a unique advantage in seizing the "counter-cyclical" development track and laying a solid foundation for a new round of strategic expansion.

5. Main operating conditions during the reporting period

In 2025, the company will achieve operating income of 7.188 billion yuan; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses - 526 million yuan. The main reason for the loss is that the company made provision for impairment of various assets totaling 775 million yuan at the end of the reporting period, reducing the net profit attributable to shareholders of the listed company in 2025 by 567 million yuan.

(1) Main business analysis

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

Unit: Yuan Currency: RMB

Item Number for the current period Number for the same period last year Change ratio (%) Operating income 7,187,510,832.55 8,547,476,550.13 -15.91 Operating costs 6,359,490,472.79 7,880,674,861.75 -19.30 Sales expenses 91,289,716.57 79,251,228.32 15.19 Administrative expenses 407,807,069.90 415,405,917.14 -1.83 Financial expenses 84,206,230.93 14,981,148.09 462.08 Research and development expenses 17,313,627.52 30,625,896.07 -43.47 Net cash flow from operating activities 1,076,236,611.15 467,931,387.17 130.00 Net cash flow from investing activities -1,348,563,928.92 -1,387,119,480.77 Not applicable Net cash flow generated from financing activities 143,423,308.44 4,847,210,276.82 -97.04

Explanation of reasons for changes in operating income: During the reporting period, operating income decreased by 15.91% compared with the same period last year, mainly due to the impact of changes in macroeconomics and market supply and demand. 1) The sales and prices of the company's joint alkali products, glass and photovoltaic products, and glyphosate products decreased compared with the same period last year. 2) The growth in sales revenue of methionine products and mineral products was jointly affected.

Explanation of reasons for changes in operating costs: During the reporting period, operating costs decreased by 19.30% compared with the same period last year, mainly due to the decrease in sales of joint alkali products, glass and photovoltaic products, and glyphosate products in the current period.

Explanation of reasons for changes in sales expenses: During the reporting period, sales expenses increased by 15.19% compared with the same period last year, mainly due to changes in market conditions. In this period, market development efforts were increased, warehousing was moved closer to the customer market, and warehousing fees, depreciation fees and travel expenses increased.

Explanation of reasons for changes in administrative expenses: During the reporting period, administrative expenses decreased by 1.83% compared with the same period last year, mainly due to the decrease in employee salaries and environmental protection expenses in this period compared with the previous period.

Explanation of reasons for changes in financial expenses: During the reporting period, financial expenses increased significantly compared with the same period last year, mainly due to the combined impact of the company's increased investment scale in this period, the increase in bank loan interest expenses, the increase in exchange losses, and the decrease in interest capitalization.

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Explanation of reasons for changes in R&D expenses: During the reporting period, R&D expenses decreased by 43.47% compared with the same period last year, mainly due to subsidiaries in this period

The impact of reduced STK R&D personnel and cost investment.

Explanation of reasons for changes in net cash flow from operating activities: During the reporting period, net cash flow from operating activities increased by 130% compared with the same period last year, mainly due to the combined impact of strengthening sales collection efforts and using bank acceptance bills to pay for goods during this period.

Explanation of reasons for changes in net cash flow generated from investing activities: During the reporting period, the net cash flow expenditures generated from investing activities did not change significantly compared with the previous period. The cash flow paid from investing activities was mainly expenditures for the purchase and construction of fixed assets, intangible assets and other long-term assets in the current period.

Explanation of reasons for changes in net cash flow generated from financing activities: During the reporting period, the net cash flow generated from financing activities decreased significantly compared with the same period last year, mainly due to the receipt of funds raised from convertible bonds in the previous period.

Detailed description of major changes in the company's business type, profit composition or profit sources during the current period

□Applicable √Not applicable

2. Revenue and cost analysis

√Applicable □Not applicable

During the reporting period, the company achieved main business income of 7.076 billion yuan, main business costs of 6.274 billion yuan, and comprehensive gross profit margin.

11.33%. In the same period last year, the main business income was 8.412 billion yuan, the main business cost was 7.759 billion yuan, and the comprehensive gross profit margin was 7.76%.

Main business income decreased by 15.89% compared with the same period last year, mainly due to 1) the company's joint alkali products, glass and photovoltaic products,

The sales volume and price of glyphosate products decreased compared with the same period last year, which was jointly affected by 2) the growth in sales revenue of methionine products and mineral products;

Main business costs decreased by 19.14% compared with the same period last year, mainly due to the company's joint alkali products, glass and photovoltaic products, glycerin

Sales volume of phosphine products decreased compared with the same period last year.

(1). Main business breakdown by industry, product, region, and sales model

Unit: Yuan Currency: RMB Main business by industry

Operating income Operating costs Gross profit margin vs. gross profit margin

Sub-industry Operating income Operating cost Increase over the previous year Increase over the previous year Increase or decrease over the previous year (%)

Less (%) Less (%) (%)

Increase by 0.55 Mining industry 428,921,715.74 142,112,370.48 66.87 9.40 7.62

Chemical manufacturing increased by 2.76 percentage points

5,959,541,815.93 5,444,805,737.58 8.64 -9.53 -12.19

Manufacturing Industry Percentage points glass manufacturing decreased by 0.29

1,236,131,131.28 1,230,353,575.39 0.47 -44.86 -44.69

Industry percentage points

Add 3.39 subtotal 7,624,594,662.95 6,817,271,683.45 10.59 -17.31 -20.33

Internal offset by percentage points -548,563,752.44 -543,265,488.93

Increased by 3.57 Total 7,076,030,910.51 6,274,006,194.52 11.33 -15.89 -19.14

Percentage points of main business by product

Operating income Operating costs Gross profit margin vs. gross profit margin

By product Operating income Operating cost Increase over the previous year Increase over the previous year Increase or decrease over the previous year (%)

Less (%) Less (%) (%)

Reduction in joint alkali products 1,129,100,633.20 1,403,349,983.17 -24.29 -44.25 -28.04 28.01 percentage points

Increase of 0.55 mineral products 428,921,715.74 142,112,370.48 66.87 9.40 7.62

percentage points

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Diglyphosate/grass increased by 7.69

2,513,478,481.32 2,334,008,852.03 7.14 -11.23 -18.01

Glyphosate percent glass and light decreased by 0.29

1,236,131,131.28 1,230,353,575.39 0.47 -44.86 -44.69

Voltage business percentage points methionine and increase 9.85

1,884,731,489.06 1,443,962,935.99 23.39 47.32 30.53

By-product percentage points

Increase 3.10 biological pesticides 92,793,931.47 47,746,035.62 48.55 22.23 15.28

Percentage points of retail finished goods increased by 0.20

24,154,912.91 21,135,116.43 12.50 -35.96 -36.11

Oil percentage points and other products increased by 4.29 (liquid ammonia, percentage points

315,282,367.97 194,602,814.34 38.28 -6.61 -12.68

ammonium sulfate,

natural gas)

Add 3.39 subtotal 7,624,594,662.95 6,817,271,683.45 10.59 -17.31 -20.33

Internal offset by percentage points -548,563,752.44 -543,265,488.93

Increased by 3.57 Total 7,076,030,910.51 6,274,006,194.52 11.33 -15.89 -19.14

Percentage points of main business by region

Operating income Operating costs Gross profit margin vs. gross profit margin

Operating income by region Operating costs Increase over the previous year Increase over the previous year Increase or decrease over the previous year (%)

Less (%) Less (%) (%)

Increased by 1.65 Sichuan Province 2,166,655,058.95 1,863,800,884.75 13.98 -32.69 -33.96

percentage points southwest region

Decrease 9.87 (except 638,405,206.23 649,964,491.39 -1.81 -22.69 -14.40

percentage point Sichuan)

Domestic others increased by 8.36

3,863,721,716.91 3,411,248,393.78 11.71 -14.40 -21.80

Region percentage points

Decrease 0.79 Overseas 955,812,680.86 892,257,913.53 6.65 44.24 45.47

percentage points

Add 3.39 subtotal 7,624,594,662.95 6,817,271,683.45 10.59 -17.31 -20.33

Internal offset by percentage points -548,563,752.44 -543,265,488.93

Increased by 3.57 Total 7,076,030,910.51 6,274,006,194.52 11.33 -15.89 -19.14

Percentage points of main business by sales model

Operating income Operating costs Gross profit margin ratio

Gross profit margin

Sales model Operating income Operating costs Increase over the previous year Increase over the previous year Increase or decrease over the previous year (%)

Less (%) Less (%) (%)

Increased 3.24 direct sales 7,531,800,731.48 6,769,525,647.83 10.12 -17.64 -20.51

percentage points

Added 3.10 agents 92,793,931.47 47,746,035.62 48.55 22.23 15.28

percentage points

Add 3.39 subtotal 7,624,594,662.95 6,817,271,683.45 10.59 -17.31 -20.33

Internal offset by percentage points -548,563,752.44 -543,265,488.93

Total 7,076,030,910.51 6,274,006,194.52 11.33 -15.89 -19.14 Increase of 3.57

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percentage points

Description of the main business by industry, product, region and sales model

None

(2). Production and sales analysis table

√Applicable □Not applicable

Production volume ratio Sales volume ratio Inventory volume ratio Main products Unit Production volume Sales volume Inventory volume Increase or decrease in the previous year Increase or decrease in the previous year Increase or decrease in the previous year (%) (%) (%) Diglyphosate, grass

Glyphosate and its by-products (tons) 242,308.46 224,346.69 174,414.70 -3.54 -2.85 11.38 products

Methionine and

(tons) 176,586.87 220,962.00 21,363.59 7.55 31.18 -67.49 By-products

sodium carbonate, chlorine

(tons) 1,551,707.01 1,194,195.93 1,354,101.25 -36.03 -22.00 19.64 Ammonium chemical products

glass products

(Tons) 650,984.98 624,843.82 126,947.91 -33.05 -32.01 23.87 products

Description of production and sales

1. Diglyphosate, glyphosate and by-products include: diglyphosate, glyphosate raw powder, disodium hydrogen phosphate, and ammonium sulfate;

2. Methionine and by-products include: methionine, ammonium sulfate, hydroxyacetonitrile, 3MMP, cyanohydrin, sodium methylmercaptide, and acrolein;

3. Glass products include: original glass, finished glass, coated glass, ultra-white embossed glass, and photovoltaic cover backsheet;

4. The above statistics do not include internal consumption and internal sales.

(3). Performance of major purchase contracts and major sales contracts

□Applicable √Not applicable

(4). Cost analysis table

Unit: Yuan Currency: RMB

Situation by industry

This period gold

This period accounts for the same amount as last year

The forehead is higher

Cost components Total costs Period-to-period share

Amount for the current period by industry Amount for the same period last year Same period last year

Item Ratio Cost Ratio Description

Change ratio

(%) Example(%)

Example(%)

Raw materials 10,689,362.65 7.52 13,386,799.62 10.14 -20.15

Mainly due to the increase in fixed costs such as depreciation in the current period, fuel and power 18,171,911.38 12.79 25,028,723.80 18.95 -27.40

As a result, the proportion of variable costs relative to the mining industry

The decrease is mainly due to the conversion of old expenses at Mabian Phosphate Mine in the current period 27,408,663.31 19.29 11,554,870.64 8.75 137.20

Solid, due to increased depreciation

Labor cost 24,381,350.58 17.15 23,440,097.01 17.75 4.02

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Others 61,461,082.56 43.25 58,640,234.65 44.41 4.81

Raw materials 4,044,037,742.37 76.94 4,372,549,633.89 70.52 -7.51

Fuel and power 478,045,470.42 9.10 681,674,451.84 10.99 -29.87

Depreciation expense 355,003,677.56 6.75 359,222,687.44 5.79 -1.17

chemical manufacturing

Labor cost 146,221,205.29 2.78 217,395,577.40 3.51 -32.74 Mainly related to the current industry

232,454,467.03 4.42 5.64 Product sales minus others 349,587,592.07

-33.51 less sales freight 189,043,174.91 3.60 220,023,968.17 3.55 -14.08

Raw materials 745,111,760.89 60.56 1,154,849,134.49 51.91 -35.48

Fuel and power 236,571,057.16 19.23 581,962,052.47 26.16 -59.35

Mainly due to glass manufacturing depreciation expenses in the current period 76,655,901.30 6.23 140,995,531.31 6.34 -45.63

Product sales decrease Labor costs 58,724,104.86 4.77 161,970,087.52 7.28 -63.74

Others caused by less 65,368,203.93 5.31 117,766,007.16 5.29 -44.49

Sales freight 47,922,547.25 3.9 67,117,134.49 3.02 -28.60

Situation by product

This period gold

This period accounts for the same amount as last year

The forehead is higher

Cost components Total costs Period-to-period share by product Amount for the current period Amount for the same period last year Amount for the same period last year

Item Ratio Cost Ratio Explanation Change Ratio

(%) Example(%)

Example(%)

Raw materials 683,424,546.31 48.70 885,741,862.11 45.42 -22.84

Mainly due to fuel and power in the current period 369,664,168.65 26.34 572,495,067.92 29.36 -35.43 Product sales decreased. Depreciation expense of joint alkali products 101,990,535.35 7.27 103,295,886.39 5.3 -1.26

Labor cost 79,795,222.51 5.69 138,169,942.13 7.09 -42.25 Mainly due to product sales in the current period minus others 65,809,661.50 4.69 118,764,738.44 6.09 -44.59

Sales freight due to less 102,665,848.85 7.32 131,585,976.44 6.75 -21.98

Raw materials 10,689,362.65 7.52 13,386,799.62 10.14 -20.15

Fuel and power Mainly due to the increase in fixed costs such as depreciation in the current period, 18,171,911.38 12.79 25,028,723.80 18.95 -27.40

As a result, the proportion of variable costs relative to mineral products (salt

Decline caused by ore, phosphate rock)

Depreciation expenses are mainly due to the transfer of Mabian Phosphate Mine in the current period 27,408,663.31 19.29 11,554,870.64 8.75 137.20

Solid, labor costs caused by increased depreciation 24,381,350.58 17.15 23,440,097.01 17.75 4.02

Others 61,461,082.56 43.25 58,640,234.65 44.41 4.81

Raw materials 1,950,415,974.24 83.57 2,330,299,984.59 81.86 -16.30

Fuel and power 74,139,219.95 3.18 75,580,050.48 2.65 -1.91

Depreciation expense 128,116,015.61 5.49 151,141,040.64 5.31 -15.23

Diglyphosate/glyphosate

Labor cost 37,835,871.63 1.62 51,930,435.26 1.82 -27.14

Phosphine

Others 107,553,702.32 4.61 186,379,673.63 6.55 -42.29 Mainly due to the decrease in sales volume in the current period due to sales freight 35,948,068.28 1.54 51,526,700.81 1.81 -30.23

To

Raw materials 745,111,760.89 60.56 1,154,849,134.49 51.91 -35.48

Fuel and power 236,571,057.16 19.23 581,962,052.47 26.16 -59.35

Mainly due to glass and photovoltaic depreciation expenses in the current period 76,655,901.30 6.23 140,995,531.31 6.34 -45.63

Product sales decreased Labor costs 58,724,104.86 4.77 161,970,087.52 7.28 -63.74

To

Others 65,368,203.93 5.31 117,766,007.16 5.29 -44.49

Sales freight 47,922,547.25 3.9 67,117,134.49 3.02 -28.60

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Mainly due to the increase in product sales of raw materials in the current period 1,169,444,119.12 80.99 880,579,370.21 79.6 32.80

Fuel and power 31,694,448.77 2.19 30,436,512.88 2.75 4.13

Methionine and Vice

Depreciation expense 113,399,222.84 7.85 94,656,321.45 8.56 19.80

Products

Labor cost 23,802,076.61 1.65 22,092,764.39 2 7.74

Others 55,193,810.87 3.82 41,516,445.35 3.75 32.94 Mainly due to the increase in product sales in the current period and sales freight 50,429,257.78 3.49 36,911,290.92 3.34 36.62

Raw materials due to addition 45,908,350.64 96.15 39,231,676.92 94.72 17.02

fuel and power

Biopesticides depreciation expense

Labor cost 1,837,684.98 3.85 2,185,360.01 5.28 -15.91

Others

Refined oil Commodity oil 21,135,116.43 100 33,081,117.29 100 -36.11

Raw materials 173,709,635.63 89.26 203,615,622.77 91.37 -14.69

Fuel and power 2,547,633.05 1.31 3,162,820.56 1.42 -19.45

Other products Depreciation expense 11,497,903.76 5.91 10,129,438.96 4.55 13.51

Labor cost 2,950,349.56 1.52 3,017,075.61 1.35 -2.21

Others 3,897,292.34 2 2,926,734.65 1.31 33.16

Cost analysis and other explanations

None

(5). Changes in the scope of consolidation caused by changes in the equity of major subsidiaries during the reporting period

□Applicable √Not applicable

(6). Significant changes or adjustments to the company’s business, products or services during the reporting period

□Applicable √Not applicable

(7). Major sales customers and major suppliers

Customers or suppliers controlled by the same controller are deemed to be the same customer or supplier for consolidated presentation, except those under the actual control of the same state-owned asset management institution.

Description of the following customer and supplier information consolidated and presented according to the same control standards

1. Customer companies controlled by Tongwei Co., Ltd.: Tongwei Solar Energy (Sichuan) Co., Ltd., Tongwei Solar Energy (Chengdu) Co., Ltd., and Sichuan Yongxiang Resin Co., Ltd.

2. Suppliers controlled by State Grid Co., Ltd.: State Grid Sichuan Electric Power Company Leshan Wutongqiao Power Supply Branch, State Grid Sichuan Electric Power Company Luzhou Power Supply Company, State Grid Chongqing Electric Power Company Jiangjin District Power Supply Branch, State Grid Anhui Electric Power Co., Ltd., State Grid Sichuan Electric Power Company Leshan Power Supply Company, State Grid Sichuan Electric Power Company Jingyan County Power Supply Branch, State Grid Sichuan Electric Power Guang'an Power Supply Company.

3. Suppliers controlled by PetroChina Co., Ltd.: Chengdu Sales Department of PetroChina Co., Ltd. Natural Gas Sales Sichuan and Chongqing Branch, Sichuan Chuangang Gas Co., Ltd., Sichuan Shenggang Natural Gas Co., Ltd., Chongqing Kaiyuan Oil and Gas Co., Ltd., Sichuan Huayou Group Co., Ltd., Luzhou Sales Department of PetroChina Co., Ltd. Natural Gas Sales Sichuan and Chongqing Branch, PetroChina Shunan Gas Mine of Southwest Oil and Gas Field Branch of China National Petroleum Corporation, Sichuan PetroChina Natural Gas Pipeline Co., Ltd., China National Petroleum Corporation Chongqing Yongchuan Sales Branch, China National Petroleum Corporation Sichuan Luzhou Sales Branch, Chongqing Jiangjin District Kunlun Gas Co., Ltd., China National Petroleum Corporation Sichuan Leshan Sales Branch, China National Petroleum Corporation Sichuan Guang'an Sales Branch.

4. Guilin Liyuan Cereals, Oils and Food Group Co., Ltd. includes a total of 62 subsidiaries.

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A. The company’s main sales customers and main suppliers

√Applicable □Not applicable

The sales of the top five customers were RMB 2,389.9162 million, accounting for 33.25% of the total annual sales; among the sales of the top five customers, the sales of related parties were RMB 0,000, accounting for 0% of the total annual sales.

Proportion of customers Sales amount does not include tax (10,000 yuan)

(%) Shandong Weifang Runfeng Chemical Co., Ltd. 93,060.00 12.95 Tongwei Co., Ltd. 49,533.66 6.89 Jiangsu Good Harvest Wayne Agrichemical Co., Ltd. 47,710.74 6.64 Nantong Jiangshan Pesticide and Chemical Co., Ltd. 31,984.32 4.45 Guilin Liyuan Cereals, Oils and Food Group Co., Ltd. 16,702.91 2.32Total 238,991.62 33.25

The purchase amount of the top five suppliers was RMB 2,846,132,600, accounting for 54.96% of the total annual purchases; among the purchases from the top five suppliers, the purchase amount from related parties was RMB 414,725,600, accounting for 8.01% of the total annual purchases.

Proportion of suppliers Purchase amount excluding tax (10,000 yuan)

(%) China National Petroleum Corporation 136,923.95 26.44 State Grid Co., Ltd. 81,619.11 15.76 Panzhihua Zhongli Cheng Industrial Co., Ltd. 41,472.56 8.01 Sinopec Chemical Sales Co., Ltd. Central China Branch 12,658.66 2.44 Hainan Taka International Trading Co., Ltd. 11,938.98 2.31Total 284,613.26 54.96

B. During the reporting period, the sales ratio to a single customer exceeds 50% of the total, and there are new customers among the top 5 customers or they are heavily dependent on a few customers.

□Applicable √Not applicable

During the reporting period, the proportion of purchases from a single supplier exceeds 50% of the total amount, there are new suppliers among the top 5 suppliers, or the situation is heavily dependent on a few suppliers.

□Applicable √Not applicable

C. The company’s stocks were subject to delisting risk warnings or other risk warnings during the reporting period

Top five sales customers

□Applicable √Not applicable

Top five suppliers

□Applicable √Not applicable

D. The company had trading business income during the reporting period

□Applicable √Not applicable

The top five sales customers whose trading business accounts for more than 10% of operating income

□Applicable √Not applicable

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The top five suppliers whose trading business revenue accounts for more than 10% of operating revenue

□Applicable √Not applicable

Other notes:

None

3. Cost

√Applicable □Not applicable

Unit: Yuan Change ratio account Number for the current period Number for the same period last year

(%) Selling expenses 91,289,716.57 79,251,228.32 15.19 Administrative expenses 407,807,069.90 415,405,917.14 -1.83 Financial expenses 84,206,230.93 14,981,148.09 462.08 Research and development expenses 17,313,627.52 30,625,896.07 -43.47

Explanation of reasons for changes in financial expenses: During the reporting period, financial expenses increased significantly compared with the same period last year, mainly due to the combined impact of the company's increased investment scale in this period, the increase in bank loan interest expenses, the increase in exchange losses, and the decrease in interest capitalization.

Explanation of reasons for changes in R&D expenses: During the reporting period, R&D expenses decreased by 43.47% compared with the same period last year, mainly due to the decrease in R&D personnel and expense investment of subsidiary STK in this period.

4. R&D investment

(1). R&D investment status table

√Applicable □Not applicable

Unit: Yuan Currency: RMB Expensed R&D investment in the current period 17,313,627.52 Capitalized R&D investment in the current period 65,376,880.02 Total R&D investment 82,690,507.54 Proportion of total R&D investment in operating income (%) 1.15 Proportion of capitalized R&D investment (%) 79.06

(2). R&D personnel status table

√Applicable □Not applicable

Number of R&D personnel in the company 137 Proportion of the number of R&D personnel in the total number of employees in the company (%) 2.69

Educational structure of R&D personnel

Academic qualification structure category Academic qualification structure Number of people

Doctoral students 6 Master students 12 Undergraduate students 40 College students 50 High school students and below 29

Age structure of R&D personnel

Age structure category Age structure number of people

Under 30 years old (excluding 30 years old) 59 30-40 years old (including 30 years old, excluding 40 years old) 15

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40-50 years old (including 40 years old, excluding 50 years old) 34 50-60 years old (including 50 years old, excluding 60 years old) 23 60 years old and above 6

(3).Situation description

□Applicable √Not applicable

(4). Reasons for major changes in the composition of R&D personnel and their impact on the company’s future development

□Applicable √Not applicable

5. Cash flow

√Applicable □Not applicable

Unit: Yuan Change ratio item Number of the current period Number of the same period last year

Example (%) Net cash flow from operating activities 1,076,236,611.15 467,931,387.17 130.00 Net cash flow from investing activities -1,348,563,928.92 -1,387,119,480.77 Not applicable Net cash flow from financing activities 143,423,308.44 4,847,210,276.82 -97.04

Explanation of reasons for changes in net cash flow from operating activities: During the reporting period, net cash flow from operating activities increased by 130% compared with the same period last year, mainly due to the strengthening of sales collection efforts and the use of bank acceptance bills to pay for goods in this period.

Explanation of reasons for changes in net cash flows generated from investing activities: During the reporting period, the net cash flow expenditures generated from investing activities did not change significantly compared with the previous period. The cash flows paid from investing activities were mainly expenditures for the purchase and construction of fixed assets, intangible assets and other long-term assets in the current period.

Explanation of reasons for changes in net cash flow generated from financing activities: During the reporting period, the net cash flow generated from financing activities decreased significantly compared with the same period last year, mainly due to the receipt of funds raised from convertible bonds in the previous period.

(2) Explanation of significant changes in profits caused by non-main business

□Applicable √Not applicable

(3) Analysis of assets and liabilities

√Applicable □Not applicable

1. Assets and liabilities status

Unit: yuan Currency: RMB current period

This issue

Closing amount at the end of the previous period

The last number accounted for

Number of total capital compared with the previous period

Project name Closing amount of the current period Total assets Closing amount of the previous period Proportion of situation statement Changes at the end of the period

proportion of

(%) Moving ratio

(%)

(%)

Mainly due to financing of accounts receivable of this newspaper 350,670,396.62 1.24 1,211,259,933.57 4.09 -71.05 Bank acceptance bills arrived during the reporting period

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Caused by overdue payment and payment for goods

Mainly due to photovoltaic contract assets during the reporting period 35,414,590.14 0.13 21,823,366.60 0.07 62.28

The increase in EPC power station projects was mainly due to the increase in long-term equity investment during the reporting period 124,638,872.38 0.44 51,069,620.54 0.17 144.06 The increase in investments in Burqin Mustang, AEV, BCT, etc. was mainly due to the development expenditure of diglyphosate production technology projects during the reporting period 231,550,023.02 0.82 173,254,914.06 0.58 33.65

Due to continued investment in project development expenditures

Mainly due to the long-term deferred expenses of certification fees during the reporting period 833,962.31 0.00 1,226,415.11 0.00 -32.00

Due to decrease in amortization

Mainly due to other non-current assets of this report. Prepaid labor during the reporting period 633,768,316.51 2.25 308,091,239.02 1.04 105.71

Due to the increase in the cost of production equipment, etc.

Mainly due to the note payable of this newspaper 0.00 0.00 669,343,934.47 2.26 -100.00 Mainly due to the due payment of the note payable during the reporting period Mainly due to the supplier's accounts payable during the reporting period 930,521,860.04 3.30 1,438,298,949.59 4.85 -35.30

Due to increased payment

Mainly due to the contract liabilities of this newspaper 129,715,572.10 0.46 45,100,553.29 0.15 187.61 The increase in advance payments for goods received during the reporting period is mainly due to employee salaries payable 83,557,507.70 0.30 57,939,446.54 0.20 44.22 Due to increase in salary performance

Mainly due within one year of this reporting period

274,438,927.53 0.97 751,978,245.32 2.54 -63.50 Mature long-term non-current liabilities

Due to decrease in borrowing

Mainly due to the increase in advance payments for goods received during the reporting period 9,516,040.30 0.03 4,451,202.01 0.02 113.79 Other current liabilities of this report Mainly due to long-term credit borrowings during the reporting period 1,830,688,787.95 6.49 766,438,037.89 2.58 138.86

The increase in loans and guaranteed borrowings was mainly due to the increase in lease liabilities of this newspaper 21,955,450.29 0.08 14,524,544.67 0.05 51.16 Other explanations:

None

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2. Overseas assets

√Applicable □Not applicable

(1). Asset scale

Among them: overseas assets 1,099,426,984.27 (unit: yuan, currency: RMB), accounting for 3.90% of total assets.

(2). Relevant explanations on the high proportion of overseas assets

□Applicable √Not applicable

3. Restrictions on major assets as of the end of the reporting period

√Applicable □Not applicable

Item Closing book value Reason for restriction

Used to issue letters of credit and guarantee deposits; monetary funds for mining land 14,778,236.47

Reclamation deposit, mining geological environment management and restoration fund. Fixed assets 107,272,802.09 Used as mortgages for bank loans and guarantees for the preservation of litigation properties. Intangible assets 71,642,941.48 Used as mortgages for bank loans and guarantees for the preservation of litigation properties. Total 193,693,980.04

4. Other instructions

□Applicable √Not applicable

(4) Industry operating information analysis

√Applicable □Not applicable

The company belongs to the chemical industry according to the industry classification of the China Securities Regulatory Commission.

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Chemical industry operating information analysis

1. Basic situation of the industry

(1).Industry policies and changes

√Applicable □Not applicable

For relevant information, please refer to “II. Industry Situation of the Company During the Reporting Period” in “Section 3 Management Discussion and Analysis” of this report.

(2).Basic situation of the main sub-industries and the company’s industry status

√Applicable □Not applicable

For relevant information, please refer to “II. Industry Situation of the Company During the Reporting Period” in “Section 3 Management Discussion and Analysis” of this report.

2. Products and production

(1).Main business model

√Applicable □Not applicable

(1.1) Procurement model

The company adopts a market-oriented approach to external procurement.

In order to strengthen internal control management, the company has implemented a supplier list review and procurement separation system and fully implemented bidding and procurement.

The demand department proposes a plan based on actual needs and submits it to the procurement center. The procurement center regularly organizes a procurement committee to review the corresponding department's purchase necessity, quantity, procurement cycle, specifications and models, material requirements, optional suppliers and other procurement factors. After review and confirmation, the bidding plan is released to the outside world, and suppliers are invited to participate in the bidding. Suppliers with low prices and superior quality are selected, and the order is placed after approval by the supervisor, or a supply contract is signed with the supplier.

The company's main raw material, natural gas, is purchased in a monthly prepayment to PetroChina Co., Ltd., which is then settled based on actual usage. The company signs cooperation agreements with major suppliers of raw materials such as coal, methanol, and yellow phosphorus, and determines the actual quantity and price of each raw material purchase based on actual needs and average market prices.

(1.2) Production mode

Based on factors such as the annual production plan and progress, market demand, inventory, and actual production operations, the company assigns indicators such as output, energy consumption, environmental protection, and cost to each production department, and each production unit organizes and implements them; a strategic promotion meeting is held every month to summarize the production and sales of the month, and adjust and allocate future monthly production and sales tasks based on the actual completion progress of production and sales and market demand.

(1.3) Sales model

The company's main products are intermediate products. After years of sales accumulation, the company's business has formed a mature and efficient sales system and a stable customer base.

The company's products take quality, price, service, and delivery time as its core competitiveness, and enhance customer stickiness with cost-effectiveness and long-term stable supply capabilities. In order to expand the sales radius of the company's sodium carbonate, ammonium chloride, diglyphosate, glyphosate, glass and other products and enhance service capabilities, the company has set up sales theaters in Southwest, Northwest, Central China, South China, East China, North China, overseas and other regions to be responsible for local market development and sales services. In order to further stimulate the team's vitality and enhance market development capabilities, the sales system has constructed a set of market-oriented incentive assessment policies of "timely rewards, timely punishments, and timely substitutions", with the war zone as the assessment unit and profit indicators as the center for graded performance assessment. The assessment indicators not only point to sales quantity, but also comprehensively cover quality indicators such as sales price, payment collection rate, number of lost customers, number of new customers, etc., to achieve the assessment orientation of "emphasis on both quantity and quality" in sales work.

Main adjustments to the business model during the reporting period

□Applicable √Not applicable

(2).Main product information

√Applicable □Not applicable

Product Segmented industry Main upstream raw materials Main downstream application areas Main factors affecting price Natural gas, industrial salt, glass, alumina, composites

Upstream raw material prices, sodium carbonate, soda ash industry, brine, electricity, fuel, detergents, petrochemicals

The downstream market demands coal mining, papermaking, textiles, etc.

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Natural gas, industrial salt,

Upstream raw material prices, ammonium chloride Fertilizer industry Brine, electricity, fuel Compound fertilizer

Downstream market demand for coal

natural gas, electricity, yellow

Diglyphosate, glyphosate, agricultural production fields, upstream raw material prices,

Pesticide industry Phosphorus, methanol, hydrochloric acid,

Phosphate, crop rotation and orchard weeding, etc. Downstream market demand for sulfuric acid, etc.

Propylene, methanol, natural feed industry and livestock and poultry raising upstream raw material prices, methionine feed additive industry

Gas, breeding and other industries Downstream market demand S.T.K. biological agriculture Traditional pesticide prices, market

Pesticide industry, plants, fungicides for agricultural production, field promotion

(3). Research and innovation

√Applicable □Not applicable

In recent years, the company has increased investment and arrangements in R&D and innovation, and achieved relatively satisfactory results.

The main R&D projects are as follows:

Diglyphosate production process development project. The synergistic benefits between the bisglyphosate product intermediate iminodiacetonitrile production line and each device are improved, and the bisglyphosate production capacity and benefits are fully released.

Glyphosate production process development project. Develop new catalysts to improve the yield, catalytic efficiency and selectivity during the oxidation of diglyphosate to prepare glyphosate, and reduce the occurrence of by-products.

(4).Production technology and process

√Applicable □Not applicable

(4.1) Sodium carbonate, ammonium chloride

The company uses the joint-alkali method to produce sodium carbonate and ammonium chloride. The production technology and flow are as follows:

(4.2) Diglyphosate, glyphosate

The company uses the iminodiacetonitrile method to produce diglyphosate and glyphosate. The production technology and flow are as follows: ① Formaldehyde process

Natural gas——>Methanol——>Formaldehyde

② Preparation of hydrocyanic acid from natural gas - hydroxyacetonitrile - iminodiacetonitrile

Natural gas (PetroChina) + liquid ammonia (self-supplied) + sulfuric acid (outsourced) -> hydrocyanic acid + ammonium sulfate; hydrocyanic acid (self-supplied) + formaldehyde -> hydroxyacetonitrile;

Liquid ammonia (self-supply) + hydroxyacetonitrile --> iminodiacetonitrile.

③ Salt brine to prepare caustic soda

Salt brine (self-supply)——>liquid chlorine + caustic soda

④Preparation of phosphorus trichloride from yellow phosphorus

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⑤Diglyphosate made from phosphorus trichloride and iminodiacetonitrile

Iminodiacetonitrile + caustic soda (self-supply) + phosphorus trichloride (self-supply) + formaldehyde --> Diglyphosate ⑥ Diglyphosate to produce glyphosate

Diglyphosate (self-supply)——>glyphosate

(4.3)Methionine

Methyl mercaptan

Hydroalcohol

(2).Major environmental violations

□Applicable √Not applicable

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(5) Investment status analysis

Overall analysis of external equity investment

√Applicable □Not applicable

As of the end of the reporting period, the company's main external investments included Leshan Commercial Bank, AEV, NUF, BCT and other companies. Except for Leshan Commercial Bank's shares held by the company before its listing and the issuance of additional shares, the others were investments in upstream and downstream industries or closely related industries. As of the end of the reporting period, the data on various external equity investments are as follows:

Name of company receiving cash dividends in this period Shareholding ratio (%) Book value (10,000 yuan)

(10,000 yuan) Leshan Commercial Bank Co., Ltd. 2.74 34,002.42 Chongqing Heyou Industrial Co., Ltd. 9.38 15,049.69 Sichuan Zhongming Environmental Management Co., Ltd. 4.00 9,216.00 112.00 Panzhihua Zhongli Cheng Industrial Co., Ltd. 10.45 8,000.00 Avenira Limited 49.00 5,469.15 Burqin Yema Mining Co., Ltd. 40.00 5,283.61 Chongqing Shurong New Materials Co., Ltd. 9.38 3,686.79 Nufarm Limited 0.83 3,507.47 Chengdu New Chaoyang Crop Science Co., Ltd. 5.00 2,600.00 BULLCREST MINERAL RESOURCES LIMITED 50.00 1,711.12 Mabian Yi Autonomous County Xinshengjia Transportation Construction Co., Ltd. 3.50 709.40

1. Significant equity investment

□Applicable √Not applicable

2. Significant non-equity investments

√Applicable □Not applicable

For the progress of Guang'an Bimeida's 500,000-ton-per-year diglyphosate project, please refer to the relevant description of "I. Description of the Company's Industry and Main Business Situation During the Reporting Period" in Section 3 of this report, "Management Discussion and Analysis." As of the end of this reporting period, a total of RMB 1.116 billion had been invested in the Guang'an bisglyphosate project.

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3. Financial assets measured at fair value

√Applicable □Not applicable

Unit: Yuan Currency: Accumulation of RMB included in equity for the current period

Fair value in this period Sale/redemption in this period

Asset Category Opening Amount Less Provisions for Changes in Fair Value Purchase Amount in the Current Period Other Changes Closing Amount

Variable profit and loss return amount

dynamic value

Stocks 110,788,980.14 2,071,889.03 -42,966,038.12 77,786,210.22 35,074,658.95 Others 1,906,855,769.39 37,047,166.66 -860,589,536.95 1,083,313,399.10Total 2,017,644,749.53 2,071,889.03 -42,966,038.12 37,047,166.66 77,786,210.22 -860,589,536.95 1,118,388,058.05

Securities investment situation

√Applicable □Not applicable

Unit: Yuan Currency: Accumulation of RMB included in equity This period This period

Securities code Securities profile Funds Fair value for the period Sales amount for the period Book price at the end of the period Accounting type of securities Initial investment cost Book value at the beginning of the period Calculated fair value change Purchase Investment

Code Name Source Variable Profit and Loss Amount Value Account Movement Amount Profit and Loss

Other equity stocks NUF Nufarm 74,755,961.58 Owned 50,135,549.54 -15,060,890.59 -42,966,038.12 35,074,658.95

Instrument investment 17,132,779.62 0.00 77,786,210.22 0.00 Other equity stocks 2419.HK Dekang Agriculture and Animal Husbandry 73,000,000.00 Own 60,653,430.60

Total investment in tools / / 147,755,961.58 / 110,788,980.14 2,071,889.03 -42,966,038.12 77,786,210.22 35,074,658.95 /

Explanation of securities investment situation

□Applicable √Not applicable

Private equity fund investment situation

□Applicable √Not applicable

Derivatives investment situation

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□Applicable √Not applicable

4. The specific progress of major asset restructuring and integration during the reporting period

□Applicable √Not applicable

(6) Major asset and equity sales

□Applicable √Not applicable

(7) Analysis of major holding and participating companies

√Applicable □Not applicable

Information about major subsidiaries and joint-stock companies that affect the company's net profit by more than 10%

√Applicable □Not applicable

Unit: 10,000 yuan Currency: RMB

Company name Company type Main business Registered capital Total assets Net assets Operating income Operating profit Net profit Hebang Nongke Subsidiary Chemical 49,200.00 1,142,664.39 584,579.07 276,040.38 20,113.82 17,225.74 Hebang Phosphate Mine Subsidiary Phosphate Mine 28,600.00 95,494.27 72,734.02 29,534.48 17,640.00 14,940.58 Wujun Solar Energy Subsidiary Glass Manufacturing 45,261.00 434,168.03 199,703.19 124,077.05 -63,301.63 -46,913.70 Yongjiang Industrial Subsidiary Energy 16,010.00 34,211.68 31,820.16 10,126.19 6,382.03 5,447.52

Note:

Hebang Nongke's main business is the production and sales of diglyphosate and glyphosate. The consolidated main business income for this period was 2,513,487,600 yuan;

The net profit of Hebang Phosphate Mine accounts for more than 10% of the company's net profit. Its main business is phosphate mining and sales. The main business income for this period was 294.8532 million yuan;

The main business of Wujun Solar Energy is the production and sales of glass products. The consolidated main business income for this period was 1,236.1311 million yuan;

Yongjiang Industrial's (consolidated) net profit accounts for more than 10% of the company's net profit. Its main business is natural gas pipeline transportation and transfer, and refined oil sales. The main business income for this period was 101.2619 million yuan.

Acquisition and disposal of subsidiaries during the reporting period

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√Applicable □Not applicable

Company name Method of acquiring and disposing of subsidiaries during the reporting period Impact on overall production operations and performance Leshan Qianwei Hebang Mining Co., Ltd. Establishment Not significant impact on overall production operations and performance Leshan Jingyan Hebang Mining Co., Ltd. Establishment Not significant impact on overall production operations and performance Establishment (cancelled) Huili City Hebang Shangwuji Mining Co., Ltd. Establishment Not significant impact on overall production operations and performance Mianning Hebang Mining Co., Ltd. Establishment Not significant impact on overall production operations and performance Leshan Hebang Fire Technology Co., Ltd. Establishment Not significant impact on overall production operations and performance Sichuan Hebang Mining Group Co., Ltd. Establishment Not significant impact on overall production operations and performance Leshan Zhichuang Chemical Machinery Co., Ltd. Establishment Not significant impact on overall production operations and performance

Other instructions

□Applicable √Not applicable

(8) Structural entities controlled by the company

□Applicable √Not applicable

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6. The company’s discussion and analysis on the company’s future development

(1) Industry structure and trends

√Applicable □Not applicable

For the industry structure and trends of the company, please refer to "II. Industry situation of the company during the reporting period" in "Section 3 Management Discussion and Analysis" of this report.

(2) Company development strategy

√Applicable □Not applicable

The company adheres to the principle of industry-based and industry-strengthening enterprises, formulating a "two-pole" development strategy based on high-tech and resources, and has entered a period of rapid growth. With the help of the power of the capital market, it has gradually completed the layout of mining, chemicals, photovoltaic glass and other three major fields.

The company insists on taking technological innovation as the first driving force for development, using capital and technology to empower new productive forces, and relying on digital innovation, green innovation, management innovation, process innovation and other methods to continue to enhance the competitiveness of the company's various products. The company is committed to creating products with global market leadership, and through process technology innovation and independent research and development, it achieves the quality and cost advantages of diglyphosate and glyphosate products.

The company actively promotes the coordinated development of the mining sector and other sectors, with the goal of achieving safe, efficient, green and sustainable development of mineral resources, continuously strengthens independent prospecting and exploration capabilities, and expands the mineral business territory in a low-cost manner. With the support of intelligent technology, we can realize the scientific and efficient development and utilization of mineral resources and give the company new development momentum.

The company will actively strive to work hand in hand with all shareholders, employees and partners to build a happy life and create a better future.

(3) Business plan

√Applicable □Not applicable

Relying on its accurate prediction of the economic cycle in the early stage, the company proactively implemented the "leverage reduction" strategy and built a stable foundation for riding through the economic downturn cycle. Before the company's strategic transformation, the asset-liability ratio remained below 20% year-round; at the end of the reporting period, due to the issuance of convertible bonds, increased mining resource reserves, and accelerated progress of projects under construction, the asset-liability ratio rose to 36.34%. But overall, the above-mentioned actions are to effectively support the company's counter-cyclical industry integration and large-scale investment, and to build core competitiveness for the next ten years.

In 2026, the company will unswervingly implement the "two-pole" development strategy and be committed to building a sustainable development model. The specific business objectives are as follows:

Work Items Core Goal Plan Remarks

500,000 tons of diglyphosate project progress 70%

350,000 tons of glyphosate project progress 70%

In the methionine production business, the output reaches 100,000 tons

Photovoltaic glass business: break even and tap cost potential

Diglyphosate and glyphosate industry in production Diglyphosate output 200,000 tons; Glyphosate output

Service 60,000 tons

80% of inventory sales increased cash flow by 3.2 billion

Inventory digestion

Yuan

Other glass businesses maintain breakeven

Mabian Yanfeng Phosphate Mine Project achieves output of 800,000 tons

Salt mine business completed production of 1.5 million tons

For details, please refer to Section 3 of this report “Management Discussion and

“Analysis of Other Mineral Projects” Part 1. The Company’s progress during the reporting period

the business situation of the matter”

Newly built 25,000 tons/year yellow phosphorus plant

Construction starts

Factory project

We will continue to advance the administrative approval procedures for the project and have started preparatory work to build a new 600,000 tons/year methionine plant by the end of 2025.

Process technology optimization, device and process docking cooperation, project headquarters has been established, company projects

etc., completed all preliminary work of demonstration and are already planning the preliminary work of the project.

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In order to fully improve resource efficiency, the company has decided to complete the preliminary planning of precious metal smelting and plans to invest in the construction of smelting of its precious metals and rare metal minerals.

In order to enhance future competitiveness, and in addition to the technical transformation of the combined alkali production line of the device, which will be completed in December 2026 and has been in continuous operation for 17 years, the company decided to carry out technical transformation of the combined alkali production line.

In order to enhance future competitiveness, and in addition to the technical transformation of the float glass production line, which will be completed by the end of April 2027 and has been running continuously for 12 years, the company decided to implement technical transformation of the float glass production line. During the reporting period, the company launched "new ideas, continued to promote the "four new" ideological concepts, and promoted the ideological and cultural construction of new talents, new era, and new future.

The generation of a learning organization wants to build theme activities aimed at improving the quality of all employees and working together towards Hebang Future. The company introduces modern enterprise management such as Huawei and modern enterprise management to realize the first phase of project application methods, and continuously improves modern technology to promote the company's operation and management level.

For 25 years, the company has jointly established an innovative business with Tsinghua University, AI Industrial Application, and established an AI Application Research Institute, aiming to gradually realize the industrial application of AI.

Improved cash flow and realized cash withdrawal of 3.2 billion yuan -

Investment Strategy: Seek advantageous projects in the future and maintain a low-debt rolling development model

(4) Possible risks

√Applicable □Not applicable

For the operating risks of the company's current products, please refer to the "10. Major Risk Warning" section of the "Important Content Warning" of this report.

(5) Others

□Applicable √Not applicable

7. Explanation of circumstances and reasons for the company’s failure to disclose in accordance with the Code due to non-applicability of the Code or special reasons such as state secrets or commercial secrets

□Applicable √Not applicable

Section 4 Corporate Governance, Environment and Society

1. Description of corporate governance related situations

√Applicable □Not applicable

During the reporting period, the company adhered to the development purpose of "harmonious development and industrial prosperity" and strictly followed the "Company Law" and "Securities Law".

The provisions of relevant laws and regulations such as the Law, the Code of Corporate Governance for Listed Companies, as well as the Articles of Association and other relevant systems require the company to carry out various corporate governance tasks. By effectively performing the powers and responsibilities of the shareholders' meeting, the board of directors and the management, a corporate corporate governance structure has been formed that performs its duties, coordinates operations and has effective checks and balances.

During the reporting period, the company continued to manage inside information strictly in accordance with the "Insider Information Insider Registration and Management System" formulated by the company.

Whether there are any major differences between corporate governance and laws, administrative regulations and the China Securities Regulatory Commission’s provisions on the governance of listed companies; if there are major differences, the reasons should be explained

□Applicable √Not applicable

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2. Specific measures taken by the company’s controlling shareholders and actual controllers to ensure the independence of the company’s assets, personnel, finance, institutions, businesses, etc., as well as solutions, work progress and follow-up work plans adopted to affect the company’s independence

□Applicable √Not applicable

Controlling shareholders, actual controllers and other units controlled by them are engaged in the same or similar business as the company, as well as horizontal competition or the impact of major changes in horizontal competition on the company, the resolution measures taken, resolution progress and follow-up resolution plans □ Applicable √ Not applicable

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3. Situation of directors and senior managers

(1) Changes in shareholdings and remuneration of current and outgoing directors and senior managers during the reporting period

√Applicable □Not applicable

Unit: Share during the reporting period

Obtained from the company Whether the increase or decrease in shares during the year was on the expiration date of the official term

Name Position Gender Age Start date of term Number of shares held at the beginning of the year Number of shares held at the end of the year Pre-tax related party period Increase or decrease Reasons for changes

Total salary Obtained salary (10,000 yuan)

Chairman: 2017-

Chairman, General Manager

Zeng Xiaoping Male 65 05-24 General Manager: 2026-05-11 0 0 0 / 131.40 No Manager

2023-05-15

He Zhenggang Director Male 72 2008-02-28 2026-05-11 412,632,000 412,632,000 0 / 131.40 No

Director, Finance

Wang Jun Male 55 2008-02-28 2026-05-11 2,942,280 2,942,280 0 / 91.56 No

Director

Qin Xueling Director Female 51 2021-05-18 2026-05-11 4,100 4,100 0 / 70.43 No Chen Tian Director Female 33 2023-05-12 2026-05-11 0 0 0 / 65.40 No Li Jin Director Male 41 2023-05-12 2026-05-11 0 0 0 / 34.00 No Yuan Changhua Independent Director Male 68 2020-05-13 2026-05-11 0 0 0 / 20.00 No Hu Yang Independent Director Male 58 2020-05-13 2026-05-11 0 0 0 / 20.00 No Song Ying Independent Director Female 47 2023-05-12 2026-05-11 0 0 0 / 20.00 No

Secretary of the Board of Directors

Jiang Siying Female 38 2023-09-05 2026-05-11 0 0 0 / 85.83 No book

Total / / / / / 415,578,380 415,578,380 0 / 670.02 /

Name Main work experience

From May 2015 to March 2016, he worked for Hebang Group. From April 2016 to April 2023, he served as the president of Hebang Group. From May 2016 to May 2017, he served as the company’s vice chairman. Zeng Xiaoping

From November 2016 to October 2023, he served as director of Leshan Superstar Agriculture and Animal Husbandry Co., Ltd., from May 2017 to present, as the chairman of the company, and from May 2023 to present, he served as general manager of the company He Zhenggang. From 1993 to May 2021, he served as chairman of Hebang Group. From May 2021 to present, he served as executive director of Hebang Group. From December 2013 to August 2023, he served as Leshan Superstar Agriculture and Animal Husbandry Co., Ltd.

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Chairman of the company, served as chairman of the company from 2002 to May 2017, and served as director of the company from May 2017 to present

Wang Jun served as deputy general manager of the company from February 2008 to May 2023, and served as director and financial director of the company from February 2008 to present.

From 2005 to 2020, she served as the deputy financial manager and manager of Jixiang Coal Industry. From November 2020 to December 2023, she served as the deputy financial manager of Hebang Group. From November 2022, she served as the supervisor of Jixiang Coal Industry. Qin Xueling

From May 2021 to present, he has served as a director of the company, and from December 2023 to present, he has served as the company’s tax director.

From October 2018 to March 2020, he served as executive director and general manager of Sichuan Shaoling Times Culture Communication Co., Ltd. From March 2020 to June 2020, he served as Chen Tian of Chengdu Liweijia Technology Co., Ltd. The company's brand director. From June 2020 to September 2020, he served as the assistant to the general manager of Zhongzhibao Financial Technology (Chengdu) Co., Ltd. From October 2020 to the present, he served as the director of the company's news brand center. From May 2023 to the present, he served as the company's director.

From January 2018 to October 2021, he served as the production manager and deputy general manager of Chongqing Changfeng Biotechnology Co., Ltd. From November 2021 to August 2022, he served as the deputy process engineer of Guang'an Jiuyuan Chemical Co., Ltd. From September 2022 to December 2022, he served as the production section chief of Xinjiang Meihua Amino Acid Co., Ltd. From March 2023 to September 2023, he served as Li Jin of Hebang Biosynthetic Ammonia Engineering

Teacher, he has served as a director of Hebang Biotech from May 2023 to May 2025. He has served as an employee representative director of Hebang Biotech since May 2025. From September 2023 to September 2025, he has served as the director of the synthetic ammonia unit department of the Guang'an Bimeda project. From September 2025 to the present, he has served as the engineer of the methionine project department.

From 1979 to 1999, he successively served as the director of Jinshan Food Station of Leshan Wutongqiao District Food Company and the director of Guanying Refrigeration Factory. From 1999 to April 2024, he served as the CEO of Leshan Changyi Food Co., Ltd. Yuan Changhua

Director and General Manager of the Bank, and has served as an independent director of the company since May 2020.

From December 1985 to November 2006, he worked at the People’s Court of Shizhong District, Leshan City, Sichuan Province. From January 2008 to December 2018, he served as the director of Sichuan Sitong Bankruptcy and Liquidation Affairs Co., Ltd. Hu Yang

General Manager, serving as senior legal advisor of Sichuan Sitong Bankruptcy and Liquidation Affairs Co., Ltd. from January 2019 to present, and serving as independent director of the company from May 2020 to present.

From September 2005 to December 2006, he served as cashier of Muchuan County Zhongxin Silicon Industry Co., Ltd. From January 2007 to May 2015, he served as cashier, accounting and finance section chief of Leshan Jinshi Chemical Group Co., Ltd. and its subsidiaries. From June 2015 to May 2016, he served as project manager of Sichuan Weishi Accounting Firm Co., Ltd. From June 2016 to December 2020, he served as Leshan Songying

The expatriate financial person in charge of Tailai Sunshine Technology Development Co., Ltd. has served as the project team leader of Sichuan Fanglue Accounting Firm Co., Ltd. from January 2021 to the present, and has served as the company’s independent director from May 2023 to the present.

From May 2018 to November 2020, he served as the legal manager of Chengdu Anyixun Technology Co., Ltd. From December 2020 to March 2022, he served in the Office of the Board of Directors of Superstar Agriculture and Animal Husbandry. In April 2022, Jiang Siying

From September to August 2023, he served as director of Superstar Agriculture and Animal Husbandry. From November 2022 to August 2023, he served as secretary of the board of directors of Superstar Agriculture and Animal Husbandry. From September 2023 to present, he served as secretary of the company's board of directors.

Other situation description

□Applicable √Not applicable

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(2) Employment status of current and resigned directors and senior managers during the reporting period

1. Employment status in shareholder units

√Applicable □Not applicable

Serve in shareholder unit

Name of the employee Name of the shareholder unit Start date of the term Position of the employee on the end date of the term

Executive Director, General Manager

He Zhenggang Hebang Group 1993

reason

Working in a shareholder unit

None

Description of the situation

2. Employment status in other units

√Applicable □Not applicable

Serve in other units

Name of the employee Name of other unit Term start date Term end date

position

He Zhenggang Wu Jun Solar Director 2021-09-08 He Zhenggang Fuxing Technology Director 2021-10-26

Shenzhen Hebangzheng Zhixing Venture Capital

He Zhenggang Director 2013-12-31

Capital Co., Ltd.

He Zhenggang Israel S.T.K. Biopesticides Chairman 2015-12-31 He Zhenggang Hebang Investment (Hong Kong) Director 2017-12-31 Zeng Xiaoping Hebang Salt Mine Chairman 2017-07-12 Zeng Xiaoping Hebang Phosphate Mine Chairman 2017-07-13 Zeng Xiaoping Hebang Nongke Chairman 2017-07-12 Zeng Xiaoping Leshan Hebang New Materials Chairman and Manager 2017-07-12 Zeng Xiaoping Yongjiang Gas Station Executive Director and General Manager 2019-3-18 Zeng Xiaoping Yongjiang Industrial Executive Director and General Manager 2019-3-15 Zeng Xiaoping Liujiashan Phosphate Mine Executive Director and Manager 2021-10-27 Zeng Xiaoping Hebang Bio-Nutrient Director 2026-01-21 Zeng Xiaoping Qianwei Hebang Mining Manager, Director 2025-04-18 Zeng Xiaoping Jingyan Hebang Mining Director 2025-04-18 Wang Jun Hebang Agricultural Science Director 2017-07-12 Wang Jun Hebang Phosphate Mine Director 2017-07-13 Wang Jun Leshan Hebang New Materials Director 2017-07-12 Wang Jun Hebang Salt Mine Director 2017-07-12 Qin Xueling Sichuan Hebang Salt Chemical Co., Ltd. Executive Director, Manager 2021-05-18 Qin Xueling Jixiang Coal Supervisor 2022-11-23 Qin Xueling Leshan Commercial Bank Supervisor 2023-09-07

Sichuan Sitong bankruptcy liquidation affairs

Hu Yang Senior Legal Counsel 2019-01-31 Co., Ltd.

Sichuan Fanglue Accounting Firm

Song Ying Project Team Leader 2021-01-03

limited liability company

Working in other units

None

Description of the situation

(3) Remuneration of directors and senior managers

√Applicable □Not applicable

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Remuneration of directors and senior managers According to the company's articles of association, the remuneration of the company's directors and allowances of independent directors are reviewed and approved by the shareholders' meeting and passed through the decision-making process; the remuneration of senior managers is reviewed and approved by the board of directors

Directors discuss their remuneration at the board meeting

Yes

Whether to avoid matters

The eighth special meeting of independent directors of the sixth session of the company's board of directors reviewed and approved the "Proposal on Confirming the Remuneration of the Company's Non-Independent Directors in 2025 and the Remuneration Plan for 2026" of the Remuneration and Appraisal Committee or the Independent Directors and the special meeting on directors, senior management. The provisions of laws, regulations and the company's articles of association shall be determined based on the actual operating conditions of the company.

Conducive to promoting the diligence and responsibility of relevant directors and senior managers

The remuneration of directors and senior management personnel is determined according to the remuneration plan approved by the company's board of directors; the remuneration of the company's directors and independent director allowances are determined by the shareholders' meeting.

Remuneration of Directors and Senior Management

6.7002 million yuan

Actual payment status

At the end of the reporting period, all directors and senior management

6.7002 million yuan

The total actual salary received by managers

In 2025, the independent director allowances received by independent directors are not applicable to the assessment; all directors and senior managers of the company at the end of the non-reporting period receive director allowances, and non-independent directors who hold positions other than directors in the company are subject to assessment of actual remuneration, and receive corresponding remuneration according to their job levels. Salary = fixed salary + performance salary, basis and completion status. Fixed salary is calculated annually and paid monthly. Performance salary is assessed according to company rules and regulations.

Issuance

At the end of the reporting period, all directors and senior management

deferral of actual remuneration received by management personnel Not applicable

payment arrangements

At the end of the reporting period, all directors and senior management

Stop payment of actual remuneration received by management personnel Not applicable

Recovery situation

(4) Changes in directors and senior managers of the company

√Applicable □Not applicable

Name Position held Change situation Reason for change Li Jin Director Resignation Job transfer

Li Jin Employee Representative Director Election Job Transfer

(5) Description of punishments received by securities regulatory authorities in the past three years

□Applicable √Not applicable

(6) Others

□Applicable √Not applicable

4. Directors’ performance of duties

(1) Directors’ participation in board of directors and shareholders’ meetings

Whether to participate as a shareholder director? Participation in the board of directors

Independent meeting status name

Directors should attend this year. Appear in person or by communication. Appear by proxy. Absent. Are shareholders present for two consecutive days?

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Number of seats on the board of directors. Number of ways to participate. Number of times. Number of times without attending meetings in person.

Times Add times Add meetings

Zeng Xiaoping No 4 4 1 0 0 No 2 He Zhenggang No 4 4 1 0 0 No 1 Wang Jun No 4 4 1 0 0 No 2 Qin Xueling No 4 4 0 0 0 No 2 Chen Tian No 4 4 0 0 0 No 2 Li Jin No 4 4 0 0 0 No 2 Yuan Changhua Yes 4 4 0 0 0 No 2 Populus euphratica Yes 4 4 1 0 0 No 2 Song Ying Yes 4 4 0 0 0 No 2

Explanation for failure to attend two consecutive board meetings in person

□Applicable √Not applicable

Number of board meetings held during the year 4

Among them: Number of on-site meetings 2

Number of meetings held by communication method 0

Number of meetings held on site combined with communication methods 2

(2) Directors raise objections to company-related matters

□Applicable √Not applicable

(3) Others

□Applicable √Not applicable

5. Special committees under the board of directors

√Applicable □Not applicable

(1) Members of the special committees under the board of directors

Special Committee Category Member Names

Audit Committee Song Ying, Hu Yang, Qin Xueling

Strategy Committee He Zhenggang, Zeng Xiaoping, Wang Jun

(2) The Audit Committee held 4 meetings during the reporting period

Important Opinions Other Implementation Dates Meeting Contents

and recommendations Responsibilities 2025 3

"Proposal on the Accountant's Preliminary Review Work Report for the Company's 2024 Annual Report" Agree No. 31

"Company Annual Report 2024", "Audit Committee of the Board of Directors 2024"

Duty Performance Report", "Proposal on the Company's Re-appointment of Accounting Firm",

2025 4

"The Company's 2024 Internal Control Evaluation Report", "The Company's Agreement to the Accountant" No. 28

Evaluation Report on the Firm's Performance of Duties in 2024", "Board of Directors of the Company"

The audit committee’s performance of supervisory responsibilities over the accounting firm in 2024

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Report", "Sichuan Hebang Biotechnology Co., Ltd. No. 1 in 2025

Quarterly Report

"Sichuan Hebang Biotechnology Co., Ltd. 2025 Semi-Annual Report"

2025 8

Report" and "About the Deposit and Actual Use of Funds Raised in the Half-Year of 2025 Agree No. 19

Special report on the situation

October 2025 "Sichuan Hebang Biotechnology Co., Ltd. Third Quarter Report of 2025"

Agree to report on the 28th of Wuyue》

(3) The Strategy Committee held 1 meeting during the reporting period

Date of convening Meeting content Important opinions and suggestions Other performance of duties 2025 4 "About the Termination of the Spin-off of Wujun Solar Energy to the Shanghai Securities Exchange

Agree None

Proposal for Listing on the Main Board of the Exchange on March 28th"

(4) Specific circumstances of objectionable matters

□Applicable √Not applicable

6. Explanation of the risks found by the audit committee in the company

□Applicable √Not applicable

The Audit Committee has no objection to the supervision matters during the reporting period.

7. Employees of the parent company and major subsidiaries at the end of the reporting period

(1) Employee situation

Number of active employees of the parent company 2,204 Number of active employees of major subsidiaries 2,881 Total number of active employees 5,085 Retired employees of the parent company and major subsidiaries who need to bear expenses

/number of people

Professional composition

Major composition category Major composition number

Production staff 3,409 sales staff 206 technical staff 728 financial staff 92 administrative staff 650 Total 5,085

education level

Education level category Number (person)

Postgraduate or above 81

University 1,609 Technical secondary school and high school 1,755 Junior high school and below 1,640 Total 5,085

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(2) Remuneration policy

√Applicable □Not applicable

The company implements basic salary + performance appraisal salary based on national labor laws and regulations and the salary package formulated in the "Employee Handbook", and determines employee salary based on the employee's job position, rank and performance appraisal. During the reporting period, the company provided special allowances and subsidies to senior professionals, encouraged employees to improve their professional abilities through learning and practice, and used the internal "horse racing mechanism" to enable employees to participate in higher-level job competitions and provide career advancement channels. The company's remuneration policy maximizes the enthusiasm and creativity of employees, lays a good human resource foundation for the company's development, and provides long-term support for the company to achieve sustainable and high-quality development.

(3) Training plan

√Applicable □Not applicable

During the reporting period, in addition to organizing basic training on employees' professional knowledge, skills, working methods, etc., the company also conducted training and implementation of "front-line management" working methods, so that various tasks can be indexed, work paths are clear, and responsibilities are clear, effectively improving the company's management efficiency and effectiveness.

(4) Labor outsourcing situation

□Applicable √Not applicable

8. Profit distribution or capital reserve conversion plan

(1) Formulation, implementation or adjustment of cash dividend policy

√Applicable □Not applicable

1. The formulation of cash dividend policy

The company's profit distribution policy during the reporting period complies with the company's articles of association and review procedures, fully protects the legitimate rights and interests of small and medium-sized investors, and has clear dividend standards and dividend ratios; the conditions and procedures for adjusting or changing the profit distribution policy are compliant and transparent.

2. Implementation of cash dividend policy

As audited by Sichuan Huaxin (Group) Accounting Firm (Special General Partnership), the company's net profit attributable to shareholders of the listed company in 2025 was -536,406,669.49 yuan. As of December 31, 2025, the company's parent company's final undistributed profit in the statement was 3,269,436,559.98 yuan.

In view of the fact that the company's net profit attributable to shareholders of listed companies in 2025 is negative, and in combination with the "Articles of Association" and the company's future development plan and capital needs, in accordance with the "Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends by Listed Companies", "Self-Discipline Supervision Guidelines for Listed Companies No. 1 - Standardized Operations" and other relevant regulations, the company has formulated a profit distribution plan for 2025 as follows: no profit distribution, no transfer of public reserve funds to share capital.

(2) Special explanation of cash dividend policy

√Applicable □Not applicable

Whether it complies with the provisions of the company's articles of association or the requirements of the shareholders' meeting resolution √Yes □No Whether the dividend standards and proportions are clear and clear √Yes □No Whether the relevant decision-making procedures and mechanisms are complete √Yes □No Whether the independent directors have performed their duties and played their due role √Yes □No Whether small and medium-sized shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests have been fully protected

√Yes □No protection

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(3) If the company is profitable during the reporting period and the parent company has positive profits available for distribution to shareholders, but has not proposed a cash profit distribution plan, the company shall disclose in detail the reasons as well as the purpose and use plan of the undistributed profits.

□Applicable √Not applicable

(4) Profit distribution and capital reserve conversion plan for the reporting period

□Applicable √Not applicable

(5) Cash dividend distribution in the last three fiscal years

√Applicable □Not applicable

Unit: Yuan Currency: RMB Cumulative cash dividend amount in the last three fiscal years (tax included) (1) 160,508,541.12 Cumulative repurchase and cancellation amount in the last three fiscal years (2)

The cumulative amount of cash dividends and repurchases and write-offs in the last three fiscal years

160,508,541.12 (3)=(1)+(2)

Average annual net profit amount for the most recent three fiscal years (4) 259,433,969.64 Cash dividend ratio for the most recent three fiscal years (%) (5) = (3)/(4) 61.87 Ordinary shares attributable to listed companies in the consolidated statements for the most recent fiscal year

-536,406,669.49 shareholders’ net profit

Undistributed profit at the end of the parent company’s statement for the most recent fiscal year 3,269,436,559.98

9. The situation and impact of the company’s equity incentive plan, employee stock ownership plan or other employee incentive measures

(1) Relevant incentive matters have been disclosed in temporary announcements and there is no progress or change in subsequent implementation

√Applicable □Not applicable

Matter Overview Query Index

On July 25, 2025, the company disclosed

For details, please refer to the "Sichuan Hebang Biotechnology Co., Ltd." disclosed by the company on the website of the Shanghai Stock Exchange on July 25, 2025.

"Sichuan Hebang Biotechnology Co., Ltd. Regarding the Third Phase of Employee Stock Ownership Plan" The Department's Regarding the Third Phase of Employee Stock Ownership Plan Stocks

Announcement on the completion and termination of the stock sale" (Announcement No.: 2025-035) Announcement on the completion and termination of the sale"

(2) Incentives not disclosed in temporary announcements or with subsequent progress

Equity incentives

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Employee stock ownership plan status

□Applicable √Not applicable

Other incentives

□Applicable √Not applicable

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(3) Equity incentives granted to directors and senior managers during the reporting period

□Applicable √Not applicable

(4) The evaluation mechanism for senior managers during the reporting period, as well as the establishment and implementation of the incentive mechanism

√Applicable □Not applicable

The company conducts performance appraisals of senior managers based on the completion of the annual production and operation plan, combined with multiple indicators such as efficiency, operations, services, and safety, and then determines remuneration based on the appraisal results and the company's salary management system.

10. Construction and implementation of internal control system during the reporting period

√Applicable □Not applicable

For details, please refer to the "2025 Internal Control Evaluation Report of Sichuan Hebang Biotechnology Co., Ltd." disclosed by the company on the Shanghai Stock Exchange website on April 21, 2026.

Explanation of major deficiencies in internal control during the reporting period

□Applicable √Not applicable

11. Management and control of subsidiaries during the reporting period

√Applicable □Not applicable

In accordance with the Company Law, Securities Law, Shanghai Stock Exchange Stock Listing Rules and other laws, regulations, normative documents and the relevant provisions of the Articles of Association, the company conducts overall management and control of the operation and management of each subsidiary through procurement-production-sales unified plan management and comprehensive budget management, selects management cadres at all levels of subsidiaries through the "horse racing" mechanism, comprehensively implements target responsibility assessment management and other methods, and effectively supervises and controls the financial status, production and operation status, safety and environmental protection of subsidiaries and other major matters. During the reporting period, the company had no major deficiencies in the management and control of its subsidiaries, and the internal control of its subsidiaries has been effectively implemented.

Risk reminder of abnormal management control of subsidiaries

□Applicable √Not applicable

12. Relevant description of internal control audit report

√Applicable □Not applicable

The company hired Sichuan Huaxin (Group) Accounting Firm (Special General Partnership) to audit the effectiveness of the company's internal control in 2025 and issued a standard unqualified audit report. For details, please refer to the company’s internal control audit report disclosed on the Shanghai Stock Exchange website on April 21, 2026.

Whether to disclose the internal control audit report: Yes

Type of opinion on internal control audit report: standard unqualified opinion

Whether a non-standard audit opinion on internal control was issued during the reporting period or the previous year

□Yes √No

13. Rectification of self-examination issues in the special action on governance of listed companies

Not applicable

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14. Environmental information of listed companies and their major subsidiaries included in the list of companies that disclose environmental information in accordance with the law

√Applicable □Not applicable

Included in companies that disclose environmental information according to law

Number of companies in the industry list 3

(number)

Preface

Company name Query index number of environmental information disclosure report according to law

Sichuan Hebang Biotechnology Stock

1 https://103.203.219.138:8082/eps/index/enterprise-search Co., Ltd.

Leshan Hebang Agricultural Science and Technology Co., Ltd.

2 https://103.203.219.138:8082/eps/index/enterprise-search Ltd.

Sichuan Wujun Solar Energy Co., Ltd.

3 https://103.203.219.138:8082/eps/index/enterprise-search

Ltd.

Other instructions

□Applicable √Not applicable

15. Social Responsibility Work

(1) Whether to separately disclose social responsibility report, sustainable development report or ESG report

□Applicable √Not applicable

(2) Specific situation of social responsibility work

√Applicable □Not applicable

External donations and public welfare projects Quantity/Content Description Total investment (10,000 yuan) 12.61 Donated 116,100 yuan to Pingshan County and sponsored 10,000 yuan to Luocheng Town, Qianwei County. Including: funds (10,000 yuan) 12.61

Specific instructions

□Applicable √Not applicable

16. Consolidate and expand the results of poverty alleviation, rural revitalization and other work specific situations

√Applicable □Not applicable

Poverty Alleviation and Rural Revitalization Projects Quantity/Content Description

Donated RMB 1.0368 million to the revitalization of Mabian countryside and invested RMB 1.0568 million to the Fourth National Congress (10,000 yuan)

Sichuan Provincial Poverty Alleviation Foundation donated 20,000 yuan, including: funds (10,000 yuan) 105.68

Specific instructions

□Applicable √Not applicable

17. Others

□Applicable √Not applicable

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Section 5 Important Matters

1. Fulfillment of commitments

(1) Commitments made by the company’s actual controller, shareholders, related parties, acquirers and the company and other relevant parties during the reporting period or continuing into the reporting period

√Applicable □Not applicable

Commitment Commitment Is it fulfilled? Is it timely? Background of commitment Commitment party Commitment time Commitment period type Content Execution deadline Strict implementation

Commitment not to compete with Hebang Biotechnology’s peers on matters related to the company. For details, please refer to Submission

Addressing peers Hebang Group, initial public offering

The "Initial Public Offering" announced by the company on July 30, 2012 is not long-term and is it competing with the initial public offering? He Zhenggang When issuing stocks

Please refer to Section 7 of the Bank’s Stock Prospectus regarding horizontal competition.

issuance related

During his term of office, the number of shares transferred each year shall not exceed the number of shares of the Company held by him.

Commitment Initial public offering During the term of office; restricted sale of shares upon resignation He Zhenggang 25% of the company's total shares; within half a year after resignation, not to transfer the shares held by the bank Yes Yes Within half a year

of the company’s shares.

Hebang Group, commitment to make up for the dilution of current returns from non-public issuance of shares January 2016

Others No Long-term Yes He Zhenggang No. For details, please see Temporary Announcement No. 2016-4. month

Hebang Group,

Dilutive spot returns on public issuance of convertible corporate bonds taken to fill in 2022-10

Others He Zhenggang, Dong No Long-term Yes

For details on the commitment of measures, please see Temporary Announcement No. 2022-55. month

Related to refinancing, executives

Related Commitments Commitment: If the company launches the issuance of convertible bonds, it will comply with the Securities Law and the

The company has initiated this transaction and has implemented the Measures for the Administration of Conversion of Corporate Bonds of Hebang Group and other relevant regulations, and will decide at that time whether

From the date of issuance of convertible bonds in December 2022, other Sichuan Salt Industry, whether to participate in the subscription of this convertible bond and strictly implement the corresponding information disclosure obligations, is the month - the directors and senior executives of this convertible bond will not reduce the holding within 6 months of subscription. If the reduction occurs in violation of the commitment, the

Proceeds within six months of purchase belong to the company.

The company plans to spin off Wujun Solar Energy and go public in order to avoid horizontal competition and protect China. Submitted by Wujun Solar Energy

In the interests of small shareholders, both the company and Wujun Solar issued documents to avoid peer competition. Hebang Biotechnology, March 2022

Other commitments Commitment letter to compete, the content of the commitment letter can be found in the spin-off plan "Major matters are raised; Hebang Biotechnology Co., Ltd. is to compete Wujun Solar Energy Month

Demonstrates the important commitments of all parties." During the period when he was the controlling shareholder of Wujun Solar Energy

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The company plans to spin off Wujun Solar Energy and go public. In order to ensure the compliance, rationality and fairness of related transactions, the company and Wujun Solar Energy have made written commitments to resolve the related parties on the date of application materials. Hebang Biotechnology, March 2022

Commitment letter, the content of the commitment letter can be found in the company’s disclosure of Wujun on the website of the Shanghai Stock Exchange. Starting from; Hebang Biological Co., Ltd. is a transaction of Wujun Solar Energy.

"Reminder of Important Matters V. Important Commitments of All Parties" of the Solar Energy Spin-off Plan: Wujun Solar Energy Holdings. shareholder period

Hebang Biotech, the company and its directors and executives commit to the relevant laws regarding spin-off submissions

Director, Gao Commitment to the authenticity, accuracy, completeness and timeliness of the document, commitment to the split-off period of Wujun Solar Energy in March 2022 Others Yes Yes, Wu Junguang For details of the content of the letter, please refer to the company’s split-off forecast period of Wujun Solar Energy disclosed on the Shanghai Stock Exchange website.

"Reminder of Major Matters V. Important Commitments of All Parties".

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(2) There is a profit forecast for the company's assets or projects, and the reporting period is still in the profit forecast period. The company will explain whether the assets or projects have reached the original profit forecast and the reasons □ Achieved □ Not reached √ Not applicable

(3) Performance commitments

□Applicable √Not applicable

Changes in performance commitments

□Applicable √Not applicable

Other instructions

□Applicable √Not applicable

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2. Non-operating capital occupation by controlling shareholders and other related parties during the reporting period □ Applicable √ Not applicable

3. Illegal guarantee situation

□Applicable √Not applicable

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4. Explanation of the company’s board of directors on the “non-standard opinion audit report” of the accounting firm

□Applicable √Not applicable

5. The company’s analysis and explanation of the causes and effects of changes in accounting policies, accounting estimates, or corrections of major accounting errors

(1) The company’s analysis and explanation of the reasons and impacts of changes in accounting policies and accounting estimates

□Applicable √Not applicable

(2) The company’s analysis and explanation of the causes and effects of correction of major accounting errors

□Applicable √Not applicable

(3) Communication status with the previous accounting firm

□Applicable √Not applicable

(4) Approval procedures and other instructions

□Applicable √Not applicable

6. Appointment and dismissal of accounting firms

Unit: Yuan Currency: RMB

Name of the domestic accounting firm currently employed: Sichuan Huaxin (Group) Accounting Firm (Special General Partnership) Domestic accounting firm Remuneration 1,100,000.00 Auditing years of the domestic accounting firm 16 years

Name of CPA of domestic accounting firm: Zhang Lan, He Shoufu, Quan Fan

Accumulation of CPA audit services provided by domestic accounting firms

5 years

Years

name reward

Sichuan Huaxin (Group) Accounting Firm

Internal control audit accounting firm 408,000.00

(Special general partnership)

Sponsor Beijing Capital Securities Co., Ltd. /

Explanation of appointment and dismissal of accounting firms

√Applicable □Not applicable

The company held the 24th meeting of the sixth board of directors on April 28, 2025, and reviewed and approved the "Proposal on the Company's Re-appointment of the Accounting Firm". After the board of directors reviewed and approved the proposal, the proposal was submitted to the company's 2024 annual shareholders' meeting for review and approval.

Explanation on the change of accounting firm during the audit period

□Applicable √Not applicable

Explanation of audit fees falling by more than 20% (inclusive) compared with the previous year

□Applicable √Not applicable

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7. Facing the risk of delisting

(1) Reasons for delisting risk warning

□Applicable √Not applicable

(2) The company’s planned response measures

□Applicable √Not applicable

(3) Situations and reasons for facing termination of listing

□Applicable √Not applicable

8. Matters related to bankruptcy and reorganization

□Applicable √Not applicable

9. Major litigation and arbitration matters

□The company has major litigation and arbitration matters this year √The company has no major litigation and arbitration matters this year

10. Listed companies and their directors, senior managers, controlling shareholders, and actual controllers suspected of violating laws and regulations, receiving penalties and rectifications

□Applicable √Not applicable

11. Explanation of the integrity status of the company, its controlling shareholders and actual controllers during the reporting period □ Applicable √ Not applicable

12. Major related transactions

(1) Related transactions related to daily operations

1. Matters that have been disclosed in temporary announcements and have no progress or changes in subsequent implementation

□Applicable √Not applicable

2. Matters that have been disclosed in temporary announcements but have subsequent progress or changes in implementation √ Applicable □ Not applicable

The company's expected daily related transactions in 2025 have been reviewed and approved at the 23rd meeting of the company's sixth board of directors and the first extraordinary general meeting of shareholders in 2025. The company's related directors and related shareholders abstained from voting; the actual amounts of the company's daily related transactions in 2025 are within the expected amount of daily related transactions. For details, please refer to the company's temporary announcement published on the Shanghai Stock Exchange website.

3. Matters not disclosed in temporary announcements

□Applicable √Not applicable

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(2) Related transactions arising from asset or equity acquisition and sale

1. Matters that have been disclosed in temporary announcements and have no progress or changes in subsequent implementation □Applicable √Not applicable

2. Matters that have been disclosed in temporary announcements but have subsequent progress or changes in implementation □ Applicable √ Not applicable

3. Matters not disclosed in temporary announcements

□Applicable √Not applicable

4. If a performance agreement is involved, the performance achievement during the reporting period should be disclosed □Applicable √Not applicable

(3) Major related transactions of joint external investment

1. Matters that have been disclosed in temporary announcements and have no progress or changes in subsequent implementation □Applicable √Not applicable

2. Matters that have been disclosed in temporary announcements but have subsequent progress or changes in implementation □ Applicable √ Not applicable

3. Matters not disclosed in temporary announcements

□Applicable √Not applicable

(4) Related credit and debt transactions

1. Matters that have been disclosed in temporary announcements and have no progress or changes in subsequent implementation □Applicable √Not applicable

2. Matters that have been disclosed in temporary announcements but have subsequent progress or changes in implementation □ Applicable √ Not applicable

3. Matters not disclosed in temporary announcements

□Applicable √Not applicable

(5) Financial business between the company and related financial companies, company-controlled financial companies and related parties □ Applicable √ Not applicable

(6) Others

□Applicable √Not applicable

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13. Major contracts and their performance

(1) Custody, contracting and leasing matters

1. Custody status

□Applicable √Not applicable

2. Contracting situation

□Applicable √Not applicable

3. Leasing situation

□Applicable √Not applicable

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(2) Guarantee situation

√Applicable □Not applicable

Unit: Yuan Currency: RMB Company’s external guarantees (excluding guarantees to subsidiaries)

Guarantee occurs

The guarantor and whether the guarantee

Date (Association Guarantee Guarantee Collateral Is the guarantee overdue? Counter-guarantee situation Is it relevant? Related guarantor Listed company Guaranteed party Guarantee amount Guarantee type Has been performed

Agreement signing starting date expiry date (if any) overdue amount condition joint guarantee relationship completed

day)

Total amount of guarantees incurred during the reporting period (excluding guarantees for subsidiaries)

Total guarantee balance at the end of the reporting period (A) (excluding guarantees for subsidiaries)

Guarantees provided by the company and its subsidiaries to subsidiaries

Total amount of guarantees for subsidiaries during the reporting period 1,224,000,000.00 Total balance of guarantees for subsidiaries at the end of the reporting period (B) 2,072,977,308.64

Total amount of company guarantees (including guarantees to subsidiaries)

Total guarantee (A+B) 2,072,977,308.64 Ratio of total guarantee to the company’s net assets (%) 11.54 Of which:

Amount of guarantee provided to shareholders, actual controllers and their related parties (C)

Directly or indirectly provide debt guarantees for guaranteed objects whose asset-liability ratio exceeds 70%

1,099,599,987.27 amount (D)

The amount of the total guarantee exceeding 50% of the net assets (E)

The total amount of the above three guarantees (C+D+E) 1,099,599,987.27 Explanation on the possible joint liability for unexpired guarantees

Guarantee description

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(3) Entrusting others to manage cash assets

1. Entrusted financial management situation

(1). Overall situation of entrusted financial management □ Applicable √ Not applicable

Other situations

□Applicable √Not applicable

(2). Individual entrusted financial management situation □Applicable √Not applicable

Other situations

□Applicable √Not applicable

(3). Impairment provisions for entrusted financial management □Applicable √Not applicable

2. Entrusted loans

(1). Overall situation of entrusted loans □Applicable √Not applicable

Other situations

□Applicable √Not applicable

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(2). Individual entrusted loans

□Applicable √Not applicable

Other situations

□Applicable √Not applicable

(3). Impairment provisions for entrusted loans

□Applicable √Not applicable

3. Other situations

□Applicable √Not applicable

(4) Other major contracts

□Applicable √Not applicable

14. Instructions on the use of raised funds

√Applicable □Not applicable

(1) Overall use of raised funds

√Applicable □Not applicable

Unit: Yuan

As of the report As of the report Prospectus for the year or Among them: As of

Over-raised funds As of the end of the report Raised over-raised at the end of the period Instructions for investment fund-raising Total amount of raised funds changed to the reporting period Accumulated funds at the end of the period Accumulated funds Proportion of investment during the year Raised funds Raised funds Raised funds Raised in the book Over-raised funds at the end of the period Net amount raised (3) = Investment raised Investment progress Investment progress Amount of investment (%) Source Time in place Total capital commitment Cumulative investment funds (1) (1) - Total funds (%) (6) (%) (7) (8) (9) Total investment Total income (2) (4) = = =(8)/(1(2) (5)

(4)/(1) (5)/(3) )

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2024 581,520, 312,970,

Issuance transferable 4,600,00 4,575,40 4,575,40

November 1 0.00 867.46 0.00 12.71 452.68 6.84 Exchange for bonds 0,000.00 0,943.40 0,943.40

day

4,600,00 4,575,40 4,575,40 581,520, 312,970,

Total / 0.00 0.00 / / / 0,000.00 0,943.40 0,943.40 867.46 452.68

Other instructions

□Applicable √Not applicable

(2) Details of fundraising projects

√Applicable □Not applicable

1. Detailed use of raised funds

√Applicable □Not applicable

Unit: Yuan Project feasible deadline

sex is report

Is it investment? No raising? End of period. As of report

Prospectus The project has reached the progress of this project. Is the capital accumulated? The accumulated investment progress at the end of the period this year.

Raised or raised this year to the scheduled whether has been realized major change project project involving planned investment investment progress has not reached the plan realized the remaining funds collection description investment can be used has been completed in line with the benefits of , name nature change investment raise (%) specific reason for the effect of the amount source Amount in the book status date project plan or research if invested in total funds (3) = cause benefit

The development results of the promised investment period are,

(1) Total (2)/(1)

Please tell me the degree of capital project (2

Ming tools)

Physical condition Guang'an 312, 581,

Issuance Production 4,575 Under construction 4,043Bimei Yes No 970, 520, 12.71 No Yes 0 No

Convertible to construction, 400, period, 527, up to 10 years

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Debt exchange Production 943.4 452.867. 205.4 Bonds 50 0 68 4.6 million tons

Double sweetness

phosphine term

Head

4,575 312, 581, 4,043 ,400, 970, 520, ,527,Total / / / / / / / / / / 0 / /

943.4 452. 867. 205.4

0 68 46 0

2. Detailed usage of excess raised funds

□Applicable √Not applicable

3. Details of the re-evaluation of investment projects during the reporting period

□Applicable √Not applicable

(3) Changes or termination of fundraising during the reporting period

□Applicable √Not applicable

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(4) Other uses of raised funds during the reporting period

1. Advance investment and replacement of raised funds in investment projects

□Applicable √Not applicable

2. Use idle raised funds to temporarily supplement working capital

□Applicable √Not applicable

3. Cash management of idle raised funds and investment in related products

□Applicable √Not applicable

4. Others

□Applicable √Not applicable

(5) The concluding opinions of the intermediary agency on the special verification and verification of the storage and use of raised funds

√Applicable □Not applicable

Sichuan Huaxin (Group) Accounting Firm (Special General Partnership) believes that the "Special Report on the Deposit, Management and Actual Use of Raised Funds in 2025 by Sichuan Hebang Biotechnology Co., Ltd." prepared by your company's management is in compliance with the requirements issued by the China Securities Regulatory Commission. "Regulations on the Supervision of Funds Raised by Listed Companies" (China Securities Regulatory Commission Announcement [2025] No. 10) and the "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations (Revised in May 2025)" issued by the Shanghai Stock Exchange (Shanghai Stock Exchange [2025] 68)" and relevant format guidelines, etc., truthfully reflect the actual storage and use of funds raised by your company in 2025 in all material aspects.

Beijing Capital Securities Co., Ltd. believes that the storage and use of funds raised by Hebang Biotech in 2025 complies with the provisions of the "Administrative Measures for the Sponsorship Business of Securities Issuance and Listing", "Supervisory Rules for Funds Raised by Listed Companies", "Shanghai Stock Exchange Stock Listing Rules", "Shanghai Stock Exchange Self-Regulatory Supervision Guidelines for Listed Companies No. 1 - Standardized Operations" and other regulations and documents. The raised funds were stored and used specifically in a special account, and relevant information disclosure obligations were fulfilled in a timely manner. The use of raised funds is consistent with the investment projects described in the prospectus.

Check the relevant description of the abnormality

□Applicable √Not applicable

(6) Subsequent rectification of unauthorized changes in the use of raised funds and illegal occupation of raised funds

□Applicable √Not applicable

15. Description of other major matters that have a significant impact on investors’ value judgments and investment decisions

□Applicable √Not applicable

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Section 6 Changes in Shares and Shareholders

1. Changes in share capital

(1) Statement of changes in shares

1. Statement of changes in shares

Unit: Before the change in share capital Increase or decrease in this change (+, -) After this change Proportion Issuance Bonus Provident Fund Proportion Quantity Others Subtotal Quantity

(%) New shares Conversion of shares (%)

1. Limited sale clause

shares

2. Unlimited sales items

8,831,250,228 100 279,000 279,000 8,831,529,228 100 tradable shares

1. RMB general currency

8,831,250,228 100 279,000 279,000 8,831,529,228 100 shares

3. Total number of shares 8,831,250,228 100 279,000 279,000 8,831,529,228 100

4. Description of changes in shares

√Applicable □Not applicable

With the consent of the China Securities Regulatory Commission for registration [2024] No. 1233, the company issued 460,000.00 to unspecified objects on October 28, 2024. Ten thousand yuan convertible corporate bonds. As approved by the Shanghai Stock Exchange Self-Regulatory Decision [2024] No. 153, the company's convertible corporate bonds will be listed and traded on the Shanghai Stock Exchange from November 19, 2024. The bond abbreviation is "Hebang Convertible Bonds" and the bond code is "113691".

According to the relevant provisions of the "Stock Listing Rules of the Shanghai Stock Exchange" and the "Prospectus for the Issuance of Convertible Corporate Bonds by Sichuan Hebang Biotechnology Co., Ltd. to Unspecified Targets", the "Hebang Convertible Bonds" issued by the company can be converted into shares of the company starting from May 6, 2025, with a conversion price of 2.00 yuan per share.

During the reporting period, the company's convertible corporate bonds accumulated a total of 279,000 shares resulting from the conversion. For details, please refer to the "Sichuan Hebang Biotechnology Co., Ltd.'s Announcement on Convertible Bond Conversion Results and Share Changes" disclosed by the company on the website of the Shanghai Stock Exchange on January 5, 2026 (Announcement No.: 2026-002).

3. The impact of share changes on financial indicators such as earnings per share and net assets per share in the most recent year and period (if any)

√Applicable □Not applicable

Changes in shares do not have a significant impact on the company's financial indicators such as earnings per share and net assets per share for the most recent year and period.

4. Other content that the company deems necessary or required to be disclosed by securities regulatory authorities

□Applicable √Not applicable

(2) Changes in restricted shares

□Applicable √Not applicable

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2. Securities issuance and listing

(1) Securities issuance as of the reporting period

√Applicable □Not applicable

Unit: Share Currency: RMB Issuance Price

Stocks and their derivatives are allowed to be listed, trading is terminated, issuance date (or interest issuance quantity, listing date

Type of security Number of trades Date rate)

convertible corporate bonds

2024-10 46 million 2024-11 46 million 2030-10 convertible corporate bonds 100 yuan/piece

Zhang 28th, Zhang 19th, Zhang 27th

Description of securities issuance as of the reporting period (for bonds with different interest rates during the duration, please explain separately):

√Applicable □Not applicable

As approved for registration by the China Securities Regulatory Commission's Securities Regulatory Commission [2024] No. 1233, the company issued 46 million convertible corporate bonds to unspecified objects on October 28, 2024, with a face value of 100 yuan each, and a total issuance of 4.6 billion yuan.

As approved by the Shanghai Stock Exchange's Self-Regulation Decision [2024] No. 153, the 4.6 billion yuan convertible corporate bonds issued by the company will be listed and traded on the Shanghai Stock Exchange from November 19, 2024. The bond abbreviation is "Hebang Convertible Bonds" and the bond code is "113691".

(2) Changes in the company’s total number of shares and shareholder structure, as well as changes in the company’s asset and liability structure

√Applicable □Not applicable

As of the end of this reporting period, the cumulative number of shares formed by conversion of the company's convertible corporate bonds was 279,000 shares, and the company's total share capital increased to 8,831,529,228 shares.

(3) Existing internal employee shares

□Applicable √Not applicable

3. Shareholders and actual controllers

(1) Total number of shareholders

Total number of common shareholders (households) as of the end of the reporting period 201,770 Total number of common shareholders (households) as of the end of the previous month before the date of disclosure of the annual report 275,201

(2) Shareholding status of the top ten shareholders and top ten tradable shareholders (or shareholders without selling restrictions) as of the end of the reporting period

Unit: Shareholding status of the top ten shareholders (excluding shares lent through refinancing)

Holds pledged, marked or frozen status

Name of shareholder Growth rate during the reporting period Sales restriction clause

Number of shares held at the end of the period Shares Nature of shareholder (full name) Less (%) Number of shares

Status

Quantity

Sichuan Hebang Investment Group Domestic non-state-owned

0 1,963,779,103 22.24 0 Pledge 1,069,000,000

Tuan Co., Ltd. Legal Person

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Sichuan Salt Industry Group

0 524,359,246 5.94 0 None 0 State-owned legal person limited liability company

He Zhenggang 0 412,632,000 4.67 0 None 0 Domestic natural person HKSCC Yes

22,138,486 100,150,128 1.13 0 None 0 Others

Ltd.

Agricultural Bank of China shares

Co., Ltd. - China

500 trading type opening 3,402,025 91,263,628 1.03 0 None 0 Others

open index securities investment

capital fund

Huatai Securities Co., Ltd.

Co., Ltd.-Peng Huazhong

Certificate segmentation chemical industry

64,857,862 73,976,262 0.84 0 None 0 Others

Theme Transaction Open

Index Securities Investment

fund

Gao Xulei 0 67,730,096 0.77 0 None 0 Domestic natural person Zhao Yong 0 39,035,034 0.44 0 None 0 Domestic natural person Qu Yeli -1,243,800 22,237,200 0.25 0 None 0 Domestic natural person Wang Zuoxin -1,435,000 21,844,000 0.25 0 None 0 Shareholding status of the top ten domestic natural persons shareholders without selling restrictions (excluding shares lent through refinancing)

Type and quantity of shares

Name of shareholder Number of shares held without selling restrictions

Type Quantity Sichuan Hebang Investment Group Co., Ltd. 1,963,779,103 RMB ordinary shares 1,963,779,103 Sichuan Salt Industry Group Co., Ltd. 524,359,246 RMB ordinary shares 524,359,246 He Zhenggang 412,632,000 RMB ordinary shares 412,632,000 Hong Kong Securities Clearing Company Limited 100,150,128 RMB ordinary shares 100,150,128 Agricultural Bank of China Co., Ltd. -

CSI 500 open-end index securities 91,263,628 RMB ordinary shares 91,263,628 bond investment funds

Huatai Securities Co., Ltd.-Penghua

CSI subdivided chemical industry theme trading type 73,976,262 RMB ordinary shares 73,976,262 open-end index securities investment fund

Gao Xulei 67,730,096 RMB ordinary shares 67,730,096 Zhao Yong 39,035,034 RMB ordinary shares 39,035,034 Qu Yeli 22,237,200 RMB ordinary shares 22,237,200 Wang Zuoxin 21,844,000 RMB ordinary shares 21,844,000

The company's special repurchase account is not listed in the "Shareholdings of the Top Ten Shareholders". As of the end of this reporting period, the situation of the special repurchase account among Sichuan and the top ten shareholders is as follows:

Bang Biotechnology Co., Ltd. repurchased a special securities account holding 857,667,072 company shares, clearly

The shareholding ratio is 9.71%.

The voting rights and trusteeship forms of the above-mentioned shareholders

None

Explanation of voting rights and waiver of voting rights

Mr. He Zhenggang holds 99% of the shares of Hebang Group and is the controlling shareholder of Hebang Group. He has the above-mentioned shareholder related relationship or concerted actions with Hebang Group.

in the association relationship. Hebang Group holds 22.24% of Hebang Biotech’s shares. Mr. He Zhenggang’s explanation of Hebang Biotech’s holdings

Hebang Group and Mr. He Zhenggang are parties acting in concert with each other.

The situation of shareholders holding more than 5% of the shares, the top ten shareholders and the top ten shareholders of unrestricted tradable shares participating in the refinancing business and lending shares

□Applicable √Not applicable

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The top ten shareholders and the top ten shareholders of unrestricted tradable shares have changed from the previous period due to refinancing lending/returning □ Applicable √ Not applicable

Number of shares held by the top ten shareholders subject to selling restrictions and conditions for selling restrictions

□Applicable √Not applicable

(3) Strategic investors or general legal persons become the top 10 shareholders due to the placement of new shares □Applicable √Not applicable

4. Controlling shareholders and actual controllers

(1) Controlling shareholders

1. Legal person

√Applicable □Not applicable

Name Hebang Group

Unit leader or legal representative He Zhenggang

Date of establishment 1993-08-05 Main business management of corporate headquarters; sales of coal and products Other domestic and foreign holdings and shares held during the reporting period At the end of the reporting period, Hebang Group held 13.34% of the shares of listed companies Leshan Superstar Agriculture and Animal Husbandry Co., Ltd. and 1.48% of the shares of Haitian Water Group Co., Ltd. Other information: None

2. Natural person

□Applicable √Not applicable

3. Special explanation that the company does not have a controlling shareholder

□Applicable √Not applicable

4. Explanation of changes in controlling shareholders during the reporting period

□Applicable √Not applicable

5. Block diagram of the property rights and control relationship between the company and its controlling shareholder √ Applicable □ Not applicable

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(2) Actual controller situation

1. Legal person

□Applicable √Not applicable

2. Natural person

√Applicable □Not applicable

Name He Zhenggang

Nationality China

Whether you have obtained the right of residence in other countries or regions? No

From 1993 to May 2021, he served as the chairman of Hebang Group. From May 2021 to present, his main occupation and position is as the executive director of Hebang Group. From 2002 to May 2017, he served as the chairman of the company.

He has served as a director of the company since May 2017. At the end of the reporting period, Mr. He Zhenggang held 4.16% of the shares of Leshan Superstar Agriculture and Animal Husbandry Co., Ltd.

3. Special explanation of the situation where the company does not have an actual controller

□Applicable √Not applicable

4. Description of changes in the company’s control during the reporting period

□Applicable √Not applicable

5. Block diagram of the property rights and control relationship between the company and the actual controller √ Applicable □ Not applicable

6. The actual controller controls the company through trust or other asset management methods □Applicable √Not applicable

(3) Other information about the controlling shareholder and actual controller

□Applicable √Not applicable

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5. The cumulative number of pledged shares by the company’s controlling shareholder or largest shareholder and persons acting in concert accounts for more than 80% of the number of company shares held by them.

□Applicable √Not applicable

6. Other legal person shareholders holding more than 10% of the shares

□Applicable √Not applicable

7. Explanation of shareholding restrictions and reductions

□Applicable √Not applicable

8. Specific implementation of share repurchases during the reporting period

√Applicable □Not applicable

Unit: Yuan Currency: RMB Share repurchase plan name Disclosure time of the plan to repurchase shares through centralized bidding transactions November 7, 2024

According to the upper limit of the total amount of repurchase funds of RMB 200 million, the number of shares to be repurchased at the repurchase price and the proportion of the total share capital

The upper limit is 3.01 yuan/share for calculation, and the estimated number of shares repurchased is approximately (%)

66,445,182 shares, accounting for approximately 0.75% of the current total share capital. Proposed repurchase amount 100,000,000.00-200,000,000.00 Proposed repurchase period November 6, 2024 to February 5, 2025 Purpose of repurchase To maintain the company’s value and shareholders’ rights

Number of repurchased shares (shares) 51,843,900.00

The number of repurchases accounts for the equity incentive plan

Proportion (%) of the underlying stock (if any)

The company uses centralized bidding transactions to reduce holdings and buy back

Progress of share purchase

9. Information related to preference shares

□Applicable √Not applicable

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Section 7 Bond-Related Information

1. Corporate bonds (including corporate bonds) and non-financial corporate debt financing instruments

□Applicable √Not applicable

2. Convertible corporate bonds

√Applicable □Not applicable

(1) Issuance of convertible bonds

√Applicable □Not applicable

As approved for registration by the China Securities Regulatory Commission's Securities Regulatory Commission [2024] No. 1233, the company issued 46 million convertible corporate bonds to unspecified objects on October 28, 2024, with a face value of 100 yuan each, and a total issuance of 4.6 billion yuan. As approved by the Shanghai Stock Exchange's Self-Regulation Decision [2024] No. 153, the 4.6 billion yuan convertible corporate bonds issued by the company will be listed and traded on the Shanghai Stock Exchange from November 19, 2024. The bond abbreviation is "Hebang Convertible Bonds" and the bond code is "113691".

(2) Convertible bond holders and guarantors during the reporting period

√Applicable □Not applicable

Convertible corporate bond name Hebang Convertible Bonds

Number of convertible bond holders at the end of the period 36,486 Guarantors of the company’s convertible bonds None

The top ten convertible bond holders are as follows:

Name of holder of convertible corporate bonds Number of bonds held at the end of the period (yuan) Holdings proportion (%) China Merchants Bank Co., Ltd. - Bosera CSI Convertible Bonds and

318,499,000 6.92 Exchangeable bond exchange-traded open-end index securities investment fund

Industrial Bank Co., Ltd.-Celestica Multi-Income Bonds

144,735,000 3.15 Securities Investment Fund

Industrial and Commercial Bank of China Co., Ltd.-Boshi Credit Bonds

133,495,000 2.90 Investment Fund

China Merchants Bank Co., Ltd. - E Fund Yuxin Bond Type

131,801,000 2.87 Securities Investment Fund

China Minsheng Banking Corporation Limited - Everbright Prudential

129,864,000 2.82 Tianyi Bond Securities Investment Fund

Shenwan Hongyuan Securities Co., Ltd. 125,228,000 2.72 CITIC Securities Co., Ltd.-Haifutong SSE investment grade

Convertible bonds and exchangeable bond trading open-end index securities 115,178,000 2.50 investment fund

Bank of Beijing Co., Ltd.-Penghua Double Debt Interest Rate Bond

105,925,000 2.30 Securities Investment Fund

Industrial and Commercial Bank of China Co., Ltd.-Celestica Tianli Bonds

104,105,000 2.26 Securities Investment Fund (LOF)

E Fund Yitian configures hybrid pension products - China Industrial

95,150,000 2.07 Commercial Bank Co., Ltd.

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(3) Changes in convertible bonds during the reporting period

√Applicable □Not applicable

Unit: Yuan Currency: RMB convertible corporate bonds Increase or decrease due to this change

Before this change, the name of the bond after this change: Conversion Redemption Sell-back

Hebang convertible bonds 4,600,000,000 558,000 4,599,442,000

The cumulative conversion of convertible bonds during the reporting period

√Applicable □Not applicable

Name of convertible corporate bonds Hebang convertible bonds Amount converted during the reporting period (yuan) 558,000.00 Number of shares converted during the reporting period (shares) 279,000 Cumulative number of shares converted (shares) 279,000 Cumulative number of shares converted accounted for the total number of issued shares of the company before the conversion (%) 0.0032 Amount not yet converted (yuan) 4,599,442,000.00 Proportion of unconverted convertible bonds to the total issuance of convertible bonds (%) 99.9879

(4) Previous adjustments to the stock conversion price

□Applicable √Not applicable

(5) The company’s liabilities, credit changes and cash arrangements for debt repayment in the coming years

√Applicable □Not applicable

During the reporting period, the company's credit status was good. China Securities Pengyuan Credit Rating Co., Ltd. issued the "2025 Tracking Rating Report on Related Bonds of Sichuan Hebang Biotechnology Co., Ltd." on July 28, 2025. The company's main credit rating is "AA", the rating outlook is stable, and the credit rating of "Hebang Convertible Bonds" is "AA".

(6) Other information on convertible bonds

□Applicable √Not applicable

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Section 8 Financial Report

1. Audit report

√Applicable □Not applicable

Audit report

Sichuan Hua Xin Shen No. 2026 No. 0020000 All shareholders of Sichuan Hebang Biotechnology Co., Ltd.:

1. Audit opinions

We have audited the financial statements of Sichuan Hebang Biotechnology Co., Ltd. (hereinafter referred to as "your company"), including the consolidated and parent company balance sheets on December 31, 2025, the consolidated and parent company income statements, the consolidated and parent company cash flow statements, the consolidated and parent company changes in shareholders' equity statements for 2025, and the notes to the relevant financial statements.

We believe that the attached financial statements have been prepared in accordance with the Accounting Standards for Business Enterprises in all material respects and fairly reflect the consolidated and parent company's financial position as of December 31, 2025, as well as the consolidated and parent company's operating results and cash flows in 2025.

2. The basis for forming audit opinions

We performed the audit work in accordance with the Chinese Certified Public Accountants Auditing Standards. Our responsibilities under these standards are further described in the "CPA's Responsibilities for the Audit of Financial Statements" section of the auditor's report. In accordance with the Chinese Code of Independence for Certified Public Accountants and the Chinese Code of Professional Ethics for Certified Public Accountants, we are independent from your company, have followed the independence requirements for auditing public interest entities, and have performed other responsibilities in professional ethics. We believe that the audit evidence we obtained is sufficient and appropriate and provides a basis for issuing an audit opinion.

3. Key audit matters

Key audit matters are matters that we, based on our professional judgment, consider to be most important in the audit of the current period's financial statements. The response to these matters is based on the audit of the financial statements as a whole and the formation of audit opinions. We do not express opinions on these matters individually. The key matters identified during our audit are as follows:

(1) Recognition of income

Please refer to "34. Revenue" in "V. Significant Accounting Policies and Accounting Estimates" in the notes to the financial statements, "61. Operating income, operating costs" in "VII. Notes on consolidated financial statement items", and "4. Operating income, operating costs" in "19. Notes on important items in the parent company's financial statements".

Key audit matter How to deal with this matter in the audit

Your company's operating income mainly comes from joint alkali products. 1. Understand, evaluate and test your company's revenue related to the manufacturing and sales of diglyphosate/glyphosate products, glass products, etc., and identify relevant key internal controls;

The main business income in 2025 is 7,076.0309 million yuan, accounting for

Operating income is 98.45%.

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Your company's domestic sales revenue is usually confirmed when the goods are shipped to 2. Select important customers to check the sales contract that is confirmed when your company signs the contract with the customer and agrees on the delivery location or is completed by the buyer. Identify the recognition related to the transfer of control rights of the goods. Export sales revenue is obtained when the ownership transfer clause for collecting the payment is obtained. Evaluate the appropriateness of your company's revenue recognition policy; when the documents are transferred, the operating revenue is recognized. 3. Conduct analytical review by product and analyze customer structure

Since operating income is one of your company's key performance indicators, unit sales price and gross profit margin are consistent with historical data and the same industry. There is an inherent risk that management will manipulate data and compare public market information to identify abnormal recognition time points to achieve specific goals or expectations, so we recognize operating income from customers and transactions;

attention as a key audit matter. 4. Select important and abnormal samples to send letters to customers to verify the sales revenue and closing balance during the reporting period, and perform alternative procedures such as post-period payment collection testing;

5. Select important and abnormal samples to check supporting documents related to revenue recognition, including financial vouchers, sales records, contracts, shipping documents, collection documents, signature records, etc., to verify the authenticity and accuracy of revenue recognition;

6. Extract large-amount revenue recognition from one month before the balance sheet date to after the balance sheet date, check shipping documents, customer receipt documents, etc., pay attention to the date of customer receipt documents, and also pay attention to whether there are large returns after the period to verify the corresponding

Whether revenue is recorded in the appropriate accounting period.

(2) Provision for asset impairment provisions

Please refer to "27. Impairment of long-term assets" in "V. Significant accounting policies and accounting estimates" in the notes to the financial statements, and "21. Fixed assets", "22. Construction in progress", "26. Intangible assets", "27. Goodwill" and "72. Asset impairment losses" in "VII. Notes on consolidated financial statement items".

Key audit matter How to deal with this matter in the audit

The company will achieve deductions attributable to shareholders of listed companies in 2025. 1. Understand and test management’s design and operation of internal controls for impairment testing of fixed assets and goodwill.

The value reserve totaled 775 million yuan, reducing the attribution in 2025. 2. Understand and evaluate the management's impairment of fixed assets and the company's shareholders' net profit of 567 million yuan. Whether the identification process of signs is reasonable;

Since the above-mentioned amount of asset impairment provision has a significant impact on the financial statements, the independent appraiser's competency and professional quality are significantly affected, and the management needs to make major estimates and judgments and understand and evaluate the objectivity;

Therefore, we recognize the provision of asset impairment provisions as key. 4. Use the work of evaluation experts to assist us in evaluating audit matters. Value types, valuation methods, signs of asset impairment as judged by management, and division of asset groups for impairment testing (cash flow generation

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(generated unit)), and evaluate the rationality of key assumptions such as discount rate, sales growth rate and gross profit margin used in the impairment assessment;

5. Perform sensitivity analysis on the discount rate, operating and financial assumptions in the impairment testing model, and calculate the potential impact on the impairment amount when these parameters and assumptions change within a reasonable range;

6. Evaluate whether the company fairly presents long-term assets minus

value.

4. Other information

Your company's management is responsible for other information. Other information includes information covered in the 2025 Annual Report, but does not include the financial statements and our auditor's report.

Our audit opinion on the financial statements does not cover other information, nor do we express any form of assurance conclusion on other information.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the audit or otherwise appears to be materially misstated. If we determine, based on the work we have performed, that other information is materially misstated, we should report that fact. We have nothing to report in this regard.

5. Responsibility of management and those charged with governance for financial statements

The management of your company is responsible for preparing financial statements in accordance with the provisions of the Accounting Standards for Business Enterprises to achieve fair reflection, and to design, implement and maintain necessary internal controls so that the financial statements are free of material misstatements due to fraud or error.

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

Those charged with governance are responsible for overseeing your company’s financial reporting process.

6. Responsibilities of certified public accountants for auditing financial statements

Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are free of material misstatements due to fraud or error, and to issue an audit report containing an audit opinion. Reasonable assurance is a high level of assurance, but it does not guarantee that an audit performed in accordance with auditing standards will always detect a material misstatement when it exists. Misstatements may be due to fraud or error and are generally considered material if they are reasonably expected individually or in aggregate to affect the economic decisions made by users of financial statements based on the financial statements. In the process of performing audit work in accordance with the auditing standards, we use professional judgment and maintain professional skepticism. At the same time, we also perform the following tasks:

(1) Identify and assess the risks of material misstatement of financial statements due to fraud or errors, design and implement audit procedures to respond to these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. Since fraud may involve string

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The risk of failure to detect a material misstatement due to fraud is higher than the risk of failure to detect a material misstatement due to error.

(2) Understand the internal controls related to auditing to design appropriate audit procedures.

(3) Evaluate the appropriateness of the accounting policies adopted by management and the reasonableness of accounting estimates and related disclosures.

(4) Draw conclusions on the appropriateness of management’s use of the going concern assumption. At the same time, based on the audit evidence obtained, a conclusion is drawn as to whether there is a significant uncertainty about events or conditions that may cause significant doubts about your company's ability to continue as a going concern. If we conclude that significant uncertainty exists, auditing standards require us to draw the attention of users to the relevant disclosures in the financial statements in our audit report; if the disclosures are insufficient, we should issue a qualified opinion. Our conclusions are based on information available as of the date of the auditor's report. However, future events or conditions may cause your company to cease to continue as a going concern.

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

(6) Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities in your company to express an audit opinion on the financial statements. We are responsible for directing, supervising and performing group audits and take full responsibility for our audit opinions.

We communicate with those charged with governance regarding, among other matters, the planned audit scope, timing and significant audit findings, including communication of significant internal control deficiencies identified during our audit.

We also provide statements to those charged with governance that we have complied with ethical requirements related to independence and communicate with those charged with governance all relationships and other matters that may reasonably be considered to affect our independence, and related safeguards, if applicable.

From the matters communicated with those charged with governance, we determine which matters are most significant to the audit of the current period's financial statements and therefore constitute key audit matters. We describe these matters in our auditor's report unless laws or regulations prohibit public disclosure of the matter or, in rare circumstances, we determine that the matter should not be communicated in our auditor's report if the adverse consequences of communicating the matter in the auditor's report are reasonably expected to outweigh the benefits in the public interest.

Sichuan Huaxin (Group) Accounting Firm Chinese Certified Public Accountants:

(Special General Partnership) (Project Partner)

Chengdu, China Chinese Certified Public Accountant:

Chinese Certified Public Accountant:

April 20, 2026

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2. Financial statements

Consolidated Balance Sheet

December 31, 2025

Prepared by: Sichuan Hebang Biotechnology Co., Ltd. Unit: Yuan Currency: RMB

Item Notes December 31, 2025 Current assets as of December 31, 2024:

Monetary funds 7.1 6,698,975,052.48 6,999,422,872.19 Settlement reserves

Loan funds

trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable Seven, 5 624,267,253.50 809,763,164.93 Accounts receivable financing Seven, 7 350,670,396.62 1,211,259,933.57 Prepayments Seven, 8 187,681,715.12 205,432,194.96 Premiums receivable

Reinsurance accounts receivable

Receivable reinsurance contract reserves

Other receivables 7.9 24,074,447.21 30,071,895.93 Including: interest receivable

Dividends receivable

Buy financial assets under resale agreements

Inventory 7.10 3,909,353,584.58 4,544,934,762.69 Including: data resources

Contract assets 7.6 35,414,590.14 21,823,366.60 Assets held for sale

Non-current assets due within one year

Other current assets 7.13 193,941,479.66 180,561,265.76

Total current assets 12,024,378,519.31 14,003,269,456.63 Non-current assets:

Grant loans and advances

debt investment

Other debt investments

Long-term receivables 7.16 111,773,306.36

Long-term equity investment VII. 17 124,638,872.38 51,069,620.54 Other equity instrument investments VII. 18 302,439,475.60 341,106,630.13 Other non-current financial assets VII. 19 465,278,185.83 465,278,185.83Investment real estate

Fixed assets 7. 21 7,368,526,645.82 7,567,419,056.88 Construction in progress 7. 22 2,136,028,735.44 2,354,469,430.77 Productive biological assets

oil and gas assets

Right-of-use assets 7. 25 36,268,281.23 30,023,932.51 Intangible assets 7. 26 2,849,903,551.03 2,388,894,110.44 Including: data resources

Development expenditure 8 231,550,023.02 173,254,914.06 Including: data resources

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Goodwill VII. 27 1,778,155,078.58 1,838,405,543.83 Long-term deferred expenses VII. 28 833,962.31 1,226,415.11 Deferred income tax assets VII. 29 145,900,684.07 127,226,004.13 Other non-current assets 7. 30 633,768,316.51 308,091,239.02 Total non-current assets 16,185,065,118.18 15,646,465,083.25

Total assets 28,209,443,637.49 29,649,734,539.88 Current liabilities:

Short-term borrowings 7.32 2,308,058,808.27 2,353,237,189.55 Borrowings from the Central Bank

borrowing funds

Trading financial liabilities

Derivative financial liabilities

Notes payable VII. 35 669,343,934.47 Accounts payable VII. 36 930,521,860.04 1,438,298,949.59 Advance receipts

Contract liabilities 7. 38 129,715,572.10 45,100,553.29 Financial assets sold and repurchased

Taking deposits and placing deposits with other banks

Agent for buying and selling securities

Agent underwriting securities funds

Employee benefits payable VII. 39 83,557,507.70 57,939,446.54 Taxes payable VII. 40 29,491,548.10 34,933,171.55 Other payables VII. 41 18,897,223.58 19,225,866.29 Including: interest payable

Dividends payable

Handling fees and commissions payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 7. 43 274,438,927.53 751,978,245.32 Other current liabilities 7. 44 9,516,040.30 4,451,202.01

Total current liabilities 3,784,197,487.62 5,374,508,558.61 Non-current liabilities:

insurance contract reserves

Long-term borrowings 7. 45 1,830,688,787.95 766,438,037.89 Bonds payable 7. 46 4,278,635,022.35 4,169,656,332.92 Including: preference shares

perpetual bond

Lease liabilities 7. 47 21,955,450.29 14,524,544.67 Long-term payables

Long-term employee benefits payable

Estimated liabilities 16,150,363.96

Deferred income 7. 51 145,154,871.75 130,165,835.17 Deferred income tax liabilities 7. 29 173,781,489.84 187,923,024.98 Other non-current liabilities

Total non-current liabilities 6,466,365,986.14 5,268,707,775.63

Total liabilities 10,250,563,473.76 10,643,216,334.24 Owners’ equity (or shareholders’ equity):

Paid-in capital (or share capital) VII. 53 8,831,529,228.00 8,831,250,228.00

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Other equity instruments 7. 54 364,176,916.23 364,221,097.83 Including: preference shares

perpetual bond

Capital reserve VII. 55 950,177,322.57 1,034,783,513.95 Less: treasury shares VII. 56 1,789,756,980.29 1,696,878,905.84 Other comprehensive income VII. 57 -39,923,982.70 -8,853,745.01 Special reserve VII. 58 14,305,789.34 23,787,328.03 Surplus reserve VII. 59 600,901,424.23 600,422,803.20 General risk reserve

Undistributed profits 7. 60 8,945,561,031.41 9,477,660,111.71 Attributable to the owners’ equity of the parent company

17,876,970,748.79 18,626,392,431.87 (or shareholders’ equity) total

Minority shareholders’ equity 81,909,414.94 380,125,773.77 Owner’s equity (or shareholder’s rights

17,958,880,163.73 19,006,518,205.64 profit) total

Liabilities and Owner's Equity

28,209,443,637.49 29,649,734,539.88 (or shareholders’ equity) total

Person in charge of the company: Zeng Xiaoping Person in charge of accounting work: Wang Jun Person in charge of the accounting department: Wang Jun

Parent company balance sheet

December 31, 2025

Prepared by: Sichuan Hebang Biotechnology Co., Ltd. Unit: Yuan Currency: RMB

Item Notes December 31, 2025 Current assets as of December 31, 2024:

Monetary funds 1,296,988,527.41 944,805,829.88 Trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable 19.1 681,811,322.76 484,552,430.83 Accounts receivable financing 128,280,158.43 158,659,955.67 Prepayments 88,605,996.87 135,827,331.45 Other receivables 19.2 5,064,693,517.05 4,846,389,805.98 Including: interest receivable

Dividends receivable

Inventory 1,146,726,792.03 1,678,582,759.17 Including: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 137,711,265.49 84,345,364.56

Total current assets 8,544,817,580.04 8,333,163,477.54 Non-current assets:

debt investment

Other debt investments

long-term receivables

Long-term equity investment 19.3 7,141,499,637.71 6,567,016,757.31 Other equity instrument investments 267,364,816.65 290,971,080.59

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Other non-current financial assets 458,184,185.83 458,184,185.83 Investment real estate

Fixed assets 3,616,699,600.73 3,463,570,330.23 Construction in progress 212,546,376.10 565,275,805.30 Productive biological assets

oil and gas assets

Right-of-use assets 2,304,760.85 2,465,029.58 Intangible assets 817,115,050.29 372,470,676.96 Including: data resources

development expenditure

Among them: data resources

goodwill

Long-term deferred expenses

Deferred income tax assets 100,322,682.64 50,956,563.91 Other non-current assets 190,713,771.17 71,216,201.11 Total non-current assets 12,806,750,881.97 11,842,126,630.82

Total assets 21,351,568,462.01 20,175,290,108.36 Current liabilities:

Short-term borrowings 1,000,812,777.79 1,301,142,013.84 Trading financial liabilities

Derivative financial liabilities

Notes payable 181,807,327.03 Accounts payable 1,416,851,850.14 919,807,855.90 Advance payments

Contract liabilities 110,635,656.38 35,485,842.28 Employee benefits payable 34,361,345.28 24,490,398.31 Taxes payable 7,189,285.24 10,313,571.94 Other payables 752,788,148.62 555,402,726.23 of which: interest payable

Dividends payable

Liabilities held for sale

Non-current liabilities due within one year 46,001,478.50 181,082,775.12 Other current liabilities 7,548,861.73 3,236,238.98

Total current liabilities 3,376,189,403.68 3,212,768,749.63 Non-current liabilities:

Long-term borrowings 1,238,010,411.11 250,214,522.91 Bonds payable 4,278,635,022.35 4,169,656,332.92 Including: preference shares

perpetual bond

Lease liabilities 1,115,460.19 1,451,690.15 Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income 13,628,124.82 1,321,874.86 Deferred income tax liabilities 137,072,830.91 145,137,318.26 Other non-current liabilities

Total non-current liabilities 5,668,461,849.38 4,567,781,739.10 Total liabilities 9,044,651,253.06 7,780,550,488.73

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Owner's equity (or stockholders' equity):

Paid-in capital (or equity) 8,831,529,228.00 8,831,250,228.00 Other equity instruments 364,176,916.23 364,221,097.83 Including: preference shares

perpetual bond

Capital reserve 1,030,630,060.80 1,015,141,479.04 Less: treasury shares 1,789,756,980.29 1,696,878,905.84 Other comprehensive income -10,494,583.98 Special reserves

Surplus reserve 600,901,424.23 600,422,803.20 Undistributed profits 3,269,436,559.98 3,291,077,501.38 Owners’ equity (or shareholders’ rights

12,306,917,208.95 12,394,739,619.63 profit) total

Liabilities and Owner's Equity

21,351,568,462.01 20,175,290,108.36 (or shareholders’ equity) total

Person in charge of the company: Zeng Xiaoping Person in charge of accounting work: Wang Jun Person in charge of the accounting department: Wang Jun

consolidated income statement

January-December 2025

Unit: Yuan Currency: RMB

Item Notes 2025 2024

1. Total operating income 7,187,510,832.55 8,547,476,550.13 Including: operating income 7. 61 7,187,510,832.55 8,547,476,550.13 Interest income

Premiums earned

Fee and commission income

2. Total operating costs 7,030,846,930.02 8,490,183,101.47 Including: operating costs 7. 61 6,359,490,472.79 7,880,674,861.75 Interest expenses

Handling fees and commission expenses

surrender deposit

Net compensation expenses

Net withdrawal of insurance liability reserves

policy dividend payout

Reinsurance cost

Taxes and surcharges VII. 62 70,739,812.31 69,244,050.10 Sales expenses VII. 63 91,289,716.57 79,251,228.32 Administrative expenses VII. 64 407,807,069.90 415,405,917.14 R&D expenses VII. 65 17,313,627.52 30,625,896.07 Financial expenses 7. 66 84,206,230.93 14,981,148.09 Including: interest expenses 125,386,654.84 66,987,144.00

Interest income 58,799,215.46 47,050,375.06 plus: other income 7. 67 25,120,191.57 16,126,285.60 Investment income (losses are filled in with "-"

7. Column 68 -5,005,111.27 -5,670,300.35)

Of which: for associates and joint ventures

-3,508,432.23 -7,065,474.10 investment income

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Financial instruments measured at amortized cost

Income from derecognition of assets

Exchange gains (losses are filled in with "-"

column)

Net exposure hedging gains (losses marked with "-"

(Fill in the number)

Gains from changes in fair value (losses calculated as

Fill in the column with "-" sign)

Credit impairment losses (losses are marked with "-"

7. 71 -12,106,950.27 -2,689,460.22 fill in the column)

Asset impairment losses (losses are marked with "-"

7. 72 -763,172,731.83 -128,021,291.49 fill in the column)

Asset disposal income (losses are represented by “-”

7. No. 73 -4,361,435.60 1,168,756.89)

3. Operating profit (loss is filled in with "-"

-602,862,134.87 -61,792,560.91 columns)

Add: Non-operating income 7.74 811,995.35 1,072,193.37 Less: Non-operating expenses 7.75 28,792,265.62 4,963,194.52

4. Total profit (total loss is marked with "-"

-630,842,405.14 -65,683,562.06 fill in the column)

Less: Income tax expenses VII. 76 81,822,226.37 5,061,047.87

5. Net profit (net loss is filled in with "-"

-712,664,631.51 -70,744,609.93 columns)

(1) Classification by business continuity

1. Net profit from continuing operations (net loss divided by

-712,664,631.51 -70,744,609.93 Fill in the "-" number)

2. Net profit from discontinued operations (net loss equal to

Fill in the column with "-" sign)

(2) Classification according to ownership ownership

1. Net profit attributable to shareholders of the parent company

-536,406,669.49 31,464,685.07 (Net loss is listed with "-")

2. Profit and loss of minority shareholders (net loss is represented by “-”

-176,257,962.02 -102,209,295.00 (Fill in the numbers)

6. Net after-tax amount of other comprehensive income -28,120,800.15 -56,289,225.80

(1) Other comprehensive assets attributable to the owners of the parent company

-26,284,027.47 -56,934,716.93 Net after-tax income

1. Other comprehensive items that cannot be reclassified into profit or loss

2,143,026.49 -63,516,232.33 income

(1) Remeasurement of changes in defined benefit plan

(2) Other comprehensive assets that cannot be transferred to profit or loss under the equity method

combined income

(3) Changes in fair value of investments in other equity instruments

2,143,026.49 -63,516,232.33 moves

(4) Changes in the fair value of the enterprise’s own credit risk

move

2. Other comprehensive income to be reclassified into profit or loss

-28,427,053.96 6,581,515.40 profit

(1) Other comprehensive convertible profits and losses under the equity method

-633,228.94 income

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(2) Changes in fair value of other debt investments

(3) Financial assets are reclassified into other comprehensive

Amount of income

(4) Credit impairment provisions for other debt investments

(5) Cash flow hedging reserve

(6) Translation difference of foreign currency financial statements -28,427,053.96 7,214,744.34 (7) Others

(2) Other comprehensive assets attributable to minority shareholders

-1,836,772.68 645,491.13 Net after-tax income

7. Total comprehensive income -740,785,431.66 -127,033,835.73

(1) Comprehensive assets attributable to owners of the parent company

-562,690,696.96 -25,470,031.86Total income

(2) Comprehensive income attributable to minority shareholders

-178,094,734.70 -101,563,803.87 total

8. Earnings per share:

(1) Basic earnings per share (yuan/share) -0.0672 0.0038

(2) Diluted earnings per share (yuan/share) -0.0522 0.0037 If a business merger under the same control occurs in this period, the net profit realized by the merged party before the merger is: 0 yuan, and the net profit realized by the merged party in the previous period is: 0 yuan.

Person in charge of the company: Zeng Xiaoping Person in charge of accounting work: Wang Jun Person in charge of the accounting department: Wang Jun

Parent company income statement

January-December 2025

Unit: Yuan Currency: RMB

Item Notes 2025 2024

1. Operating income 19.4 3,486,442,277.12 3,846,886,652.28 Less: Operating costs 3,270,154,111.47 3,541,426,418.79 Taxes and surcharges 15,520,406.56 15,277,401.38 Sales expenses 46,970,544.21 29,198,011.92 Management expenses 212,599,586.81 188,345,720.77 Research and development expenses

Financial expenses 49,823,914.81 1,002,325.63 Including: interest expenses 56,314,013.81 25,195,052.34

Interest income 29,377,620.46 17,654,212.89 Plus: other income 7,436,197.20 2,237,901.58 Investment income (losses are marked with "-"

19. 5 421,996,250.07 97,358,630.98 fill in the column)

Of which: for associates and joint ventures

367,918.38 -6,158.67 industry investment income

Money measured at amortized cost

Income from derecognition of financial assets

Net exposure hedging gain (loss calculated as

Fill in the column with "-" sign)

Gains from changes in fair value (losses calculated as

Fill in the column with "-" sign)

Credit impairment losses (losses based on

-5,565,990.14 4,099,915.90 (Fill in “-”)

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Asset impairment losses (losses based on

-316,861,219.54 -66,019,315.62 Fill in the column with "-")

Proceeds from asset disposal (loss calculated as

1,162,233.90 -8,240.34 (Fill in “-”)

2. Operating profit (loss is filled in with "-"

-458,815.25 109,305,666.29 columns)

Add: non-operating income

Less: Non-operating expenses 27,398,758.37 2,270,848.12

3. Total profit (total loss is represented by “-”

-27,857,573.62 107,034,818.17 (please fill in the list)

Less: Income tax expense -1,909,043.03 969,144.07

4. Net profit (net loss is filled in with "-"

-25,948,530.59 106,065,674.10 columns)

(1) Net profit from continuing operations (net loss

-25,948,530.59 106,065,674.10 (please fill in with "-")

(2) Net profit from discontinued operations (net loss

Fill in the column with "-" sign)

5. Net after-tax amount of other comprehensive income 15,280,794.20 -33,412,450.61

(1) Others that cannot be reclassified into profit or loss

15,280,794.20 -33,412,450.61 Comprehensive income

1. Remeasure changes in defined benefit plans

Um

2. Others that cannot be transferred to profit or loss under the equity method

Comprehensive income

3. Fair value of other equity instrument investments

15,280,794.20 -33,412,450.61 change

4. Fair value of the company’s own credit risk

change

(2) Other comprehensive items that will be reclassified into profit or loss

-Total income

1. Other comprehensive items that can be transferred to profits and losses under the equity method

combined income

2. Changes in fair value of other debt investments

3. Financial assets are reclassified into other comprehensive

Amount of combined income

4. Credit impairment provisions for other debt investments

5. Cash flow hedging reserve

6. Translation differences of foreign currency financial statements

7.Others

6. Total comprehensive income -10,667,736.39 72,653,223.49

7. Earnings per share:

(1) Basic earnings per share (yuan/share)

(2) Diluted earnings per share (yuan/share)

Person in charge of the company: Zeng Xiaoping Person in charge of accounting work: Wang Jun Person in charge of the accounting department: Wang Jun

Consolidated Cash Flow Statement

January-December 2025

Unit: Yuan Currency: RMB

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Item Notes 2025 2024

1. Cash flow generated from operating activities:

Received from selling goods and providing services

6,427,623,560.58 7,480,057,304.30 cash

Net deposits from customers and deposits from banks and other banks

increase

Net increase in borrowing from the central bank

Net borrowings from other financial institutions

increase

Obtained by receiving premiums from the original insurance contract

Cash

Net cash received from reinsurance business

Net increase in policyholders’ savings and investment funds

Collecting interest, handling fees and commissions

Cash

Net increase in borrowing funds

Net increase in repurchase business funds

Net cash received from securities trading as an agent

Um

Tax refunds received 113,708,087.09 37,242,301.96 Other tax returns related to business activities received

7. 78 115,259,286.05 162,332,673.34 cash

Subtotal of cash inflows from operating activities 6,656,590,933.72 7,679,632,279.60 Purchase of goods and acceptance of payment for services

4,303,989,899.48 5,829,688,440.22 cash

Net increase in loans and advances to customers

Net deposits with the central bank and inter-bank

increase

Payment of compensation from the original insurance contract

Cash

Net increase in lending funds

Payment of interest, fees and commissions

Cash

Cash payment for policy dividends

Payments made to and for employees

635,026,864.00 884,036,822.91 cash

Various taxes and fees paid 489,486,461.80 345,101,527.60 Paid other taxes related to business activities

7. 78 151,851,097.29 152,874,101.70 cash

Subtotal of cash outflows from operating activities 5,580,354,322.57 7,211,700,892.43 Cash flow generated from operating activities

1,076,236,611.15 467,931,387.17 Net amount

2. Cash flow generated from investing activities:

Cash received from recovery of investment 77,052,422.39 27,523,493.85 Cash received from investment income 1,853,787.83 1,806,347.01 Disposal of fixed assets, intangible assets and

992,672.44 2,698,447.46 Net cash received from other long-term assets

Disposal of subsidiaries and other business units

Net cash received

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Receive other information related to investment activities

7. 78 115,464,579.25 13,543,230.71 Cash

Subtotal of cash inflows from investing activities 195,363,461.91 45,571,519.03 Purchase and construction of fixed assets, intangible assets and

1,258,913,532.70 1,116,226,426.99 Cash paid for other long-term assets

Cash paid for investment 97,698,304.42 283,780,066.18 Net increase in pledged loans

Acquire subsidiaries and other business units

Net cash paid

Payments related to other investment activities

7. 78 187,315,553.71 32,684,506.63 cash

Subtotal of cash outflows from investing activities 1,543,927,390.83 1,432,690,999.80 Cash flow generated from investing activities

-1,348,563,928.92 -1,387,119,480.77 Net amount

3. Cash flow generated from financing activities:

Cash received from investment 120,000.00

Among them: subsidiaries absorb minority shareholders

120,000.00

Cash received from investments

Cash received from borrowings 3,900,876,713.76 7,981,179,805.55 Other cash received related to financing activities

7. 78 73,931,506.57 159,130,243.50 cash

Subtotal of cash inflows from financing activities 3,974,928,220.33 8,140,310,049.05 Cash paid to repay debts 3,367,733,749.29 1,491,322,847.50 Distribution of dividends, profits or payment of interest

135,774,305.33 246,664,095.33 Cash paid

Of which: Subsidiaries pay minority shares

22,632.74

Dividends and profits of shareholders

Make other payments related to financing activities

7. 78 327,996,857.27 1,555,112,829.40 cash

Subtotal of cash outflows from financing activities 3,831,504,911.89 3,293,099,772.23 Cash flow generated from financing activities

143,423,308.44 4,847,210,276.82 Net amount

4. Exchange rate changes on cash and cash, etc.

-38,462,235.45 18,709,035.49 Impact of price

5. Net increase in cash and cash equivalents

-167,366,244.78 3,946,731,218.71 amount

Add: Opening cash and cash equivalents

6,851,563,060.79 2,904,831,842.08 Balance

6. Cash and cash equivalents at the end of the period

6,684,196,816.01 6,851,563,060.79 amount

Person in charge of the company: Zeng Xiaoping Person in charge of accounting work: Wang Jun Person in charge of the accounting department: Wang Jun

Parent company cash flow statement

January-December 2025

Unit: Yuan Currency: RMB

Item Notes 2025 2024

1. Cash flow generated from operating activities:

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Received from selling goods and providing services

3,284,148,200.67 3,388,054,367.25 cash

Tax refunds received 64,094,467.84 32,549,546.99 Other tax returns related to business activities received

49,352,205.39 33,874,824.73 cash

Subtotal of cash inflows from operating activities 3,397,594,873.90 3,454,478,738.97 Purchase of goods and acceptance of payment for services

2,363,061,517.42 2,473,931,340.17 cash

Payments made to and for employees

297,350,063.02 365,754,483.59 cash

Various taxes and fees paid 241,424,368.80 125,311,982.25 Other taxes and fees paid related to business activities

65,138,054.86 62,615,845.03 cash

Subtotal of cash outflows from operating activities 2,966,974,004.10 3,027,613,651.04 Net cash flow from operating activities

430,620,869.80 426,865,087.93 amount

2. Cash flow generated from investing activities:

Cash received from recovery of investment 77,232,422.39

Cash received from investment income 421,887,740.62 100,960,000.00 Disposal of fixed assets, intangible assets and

570,580.01 2,283,819.04 Net cash received from other long-term assets

Disposal of subsidiaries and other business units

Net cash received

Receive other information related to investment activities

52,366,500.00 186,226,961.37 cash

Subtotal of cash inflows from investing activities 552,057,243.02 289,470,780.41 Purchase and construction of fixed assets, intangible assets and

632,667,883.88 494,340,892.33 Cash paid for other long-term assets

Cash paid for investment 650,849,171.53 727,235,411.41 Acquisition of subsidiaries and other business units

Net cash paid

Payments related to other investment activities

87,353,324.53 4,668,232,739.31 cash

Subtotal of cash outflows from investing activities 1,370,870,379.94 5,889,809,043.05 Cash flow generated from investing activities

-818,813,136.92 -5,600,338,262.64 Net amount

3. Cash flow generated from financing activities:

Absorbing cash received from investments

Cash received from borrowings 2,040,000,000.00 6,216,244,905.66 Other cash received related to financing activities

833,931,506.57 726,680,243.50 cash

Subtotal of cash inflows from financing activities 2,873,931,506.57 6,942,925,149.16 Cash paid to repay debts 1,488,100,000.00 310,000,000.00 Distribution of dividends, profits or payment of interest

74,211,941.39 189,706,554.99 Cash paid

Make other payments related to financing activities

481,413,402.25 1,272,769,679.76 cash

Subtotal of cash outflows from financing activities 2,043,725,343.64 1,772,476,234.75

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cash flow from financing activities

830,206,162.93 5,170,448,914.41 Net amount

4. Exchange rate changes on cash and cash, etc.

-16,044,416.24 2,582,165.62 Impact of price

5. Net increase in cash and cash equivalents

425,969,479.57 -442,094.68 amount

Add: Opening cash and cash equivalents

870,874,323.31 871,316,417.99 Balance

6. Cash and cash equivalents at the end of the period

1,296,843,802.88 870,874,323.31 amount

Person in charge of the company: Zeng Xiaoping Person in charge of accounting work: Wang Jun Person in charge of the accounting department: Wang Jun

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Consolidated Statement of Changes in Owner's Equity

January-December 2025

Unit: Yuan Currency: RMB

2025

Owner's equity attributable to parent company

Other equity instruments 1

Item General Minority shareholders’ equity Total paid-in capital (or equity) of owners’ equity Excellent capital reserve Less: treasury shares Other comprehensive income Special reserve Surplus reserve Risk Undistributed profits Others Subtotal continued Other risks

Stocks and bonds are accurate

Prepare

1. Ending balance of the previous year 8,831,250,228.00 364,221,097.83 1,034,783,513.95 1,696,878,905.84 -8,853,745.01 23,787,328.03 600,422,803.20 18,626,392,431.87 380,125,773.77 19,006,518,205.64

9,477,660,111.71 plus: Changes in accounting policies

Early error correction

Others

2. Balance at the beginning of the year 8,831,250,228.00 364,221,097.83 1,034,783,513.95 1,696,878,905.84 -8,853,745.01 23,787,328.03 600,422,803.20 9,477,660,111.71 18,626,392,431.87 380,125,773.77 19,006,518,205.64

3. Amount of increase or decrease in the current period

279,000.00 -44,181.60 -84,606,191.38 92,878,074.45 -31,070,237.69 -9,481,538.69 478,621.03 -532,099,080.30 -749,421,683.08 -298,216,358.83 -1,047,638,041.91 (reduce the number with "-")

(1) Total comprehensive income -26,284,027.47 -536,406,669.49 -562,690,696.96 -178,094,734.70 -740,785,431.66

(2) Owner’s investment and reduction

279,000.00 -44,181.60 -85,080,570.28 92,878,074.45 -177,723,826.33 -120,121,624.13 -297,845,450.46Capital

1. Ordinary shares invested by owners 92,878,074.45 -92,878,074.45 -92,878,074.45 2. Other equity instrument holders invest

279,000.00 -44,181.60 285,105.22 519,923.62 519,923.62 Capital invested

3. Share-based payments are included in ownership rights

15,900,169.95 15,900,169.95 908,766.21 16,808,936.16 Amount of profit

4. Others -101,265,845.45 -101,265,845.45 -121,030,390.34 -222,296,235.79

(3) Profit distribution

1. Withdrawal from surplus reserve

2. Withdraw general risk reserve

3. To the owner (or shareholder)

allocate

4. Others

(4) Internal structure of owners’ equity

-4,786,210.22 478,621.03 4,307,589.19 transfer

1. Conversion of capital reserves into capital (or

equity)

2. Conversion of surplus reserves into capital (or

equity)

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3. Surplus reserve to cover losses

4. Defined benefit plan change balance

Transfer to retained earnings

5. Other comprehensive income carried forward and retained

-4,786,210.22 478,621.03 4,307,589.19

income

6. Others

(5) Special reserves -9,481,538.69 -9,481,538.69 -9,481,538.69 1. Withdrawal in this period 50,924,823.03 50,924,823.03 50,924,823.03 2. Used in this period 60,406,361.72 60,406,361.72 60,406,361.72

(6) Others 474,378.90 474,378.90 474,378.90

4. Ending balance of the current period 8,831,529,228.00 364,176,916.23 950,177,322.57 1,789,756,980.29 -39,923,982.70 14,305,789.34 600,901,424.23 8,945,561,031.41 17,876,970,748.79 81,909,414.94 17,958,880,163.73

2024

Owner's equity attributable to parent company

one

Project Other equity instruments

General minority shareholders’ equity Total paid-in capital (or equity) Owner’s equity Other

Capital) Excellent capital reserves Less: treasury shares Other comprehensive income Special reserves Surplus reserves Insurance Undistributed profits Others Subtotal

Continue with other details first

Stock Debt Reserve

1. Ending balance of the previous year 8,831,250,228.00 1,124,527,583.61 650,369,774.03 51,678,261.78 14,726,704.82 589,816,235.79 19,575,342,485.28 643,039,736.01 20,218,382,221.29

9,613,713,245.31

Add: Changes in accounting policies

Early error correction

Others

2. Opening balance of the year 8,831,250,228.00 1,124,527,583.61 650,369,774.03 51,678,261.78 14,726,704.82 589,816,235.79 19,575,342,485.28 643,039,736.01 20,218,382,221.29

9,613,713,245.31

3. Amount of increase or decrease in the current period

364,221,097.83 -89,744,069.66 1,046,509,131.81 -60,532,006.79 9,060,623.21 10,606,567.41 -136,053,133.60 -948,950,053.41 -262,913,962.24 -1,211,864,015.65 (reduce the number with "-")

(1) Total comprehensive income -56,934,716.93 31,464,685.07 -25,470,031.86 -101,563,803.87 -127,033,835.73

(2) Owner’s investment and reduction

364,221,097.83 -89,744,069.66 1,046,509,131.81 -772,032,103.64 -161,350,158.37 -933,382,262.01Capital

1. Ordinary shares invested by owners 1,196,509,136.29 -1,196,509,136.29 -1,196,509,136.29 2. Other equity instrument holders invest

364,221,097.83 -2,291,431.05 361,929,666.78 361,929,666.78 Capital invested

3. Share-based payments are included in ownership rights

41,446,151.49 -150,000,004.48 191,446,155.97 177,805.54 191,623,961.51 Amount of profit

4. Others -128,898,790.10 -128,898,790.10 -161,527,963.91 -290,426,754.01

(3) Profit distribution 10,606,567.41 -171,115,108.53 -160,508,541.12 -160,508,541.12 1. Withdrawal from surplus reserve 10,606,567.41 -10,606,567.41

2. Withdraw general risk reserve

3. To the owner (or shareholder)

-160,508,541.12 -160,508,541.12 -160,508,541.12 allocation

4. Others

(4) Internal structure of owners’ equity

-3,597,289.86 3,597,289.86

turn

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1. Conversion of capital reserves into capital (or

equity)

2. Conversion of surplus reserves into capital (or

equity)

3. Surplus reserve to cover losses

4. Defined benefit plan change balance

Transfer to retained earnings

5. Other comprehensive income carried forward and retained

-3,597,289.86 3,597,289.86

income

6. Others

(5) Special reserves 9,060,623.21 9,060,623.21 9,060,623.21 1. Withdrawal in this period 47,762,834.63 47,762,834.63 47,762,834.63 2. Used in this period 38,702,211.42 38,702,211.42 38,702,211.42

(6) Others

4. Ending balance of the current period 8,831,250,228.00 364,221,097.83 1,034,783,513.95 1,696,878,905.84 -8,853,745.01 23,787,328.03 600,422,803.20 9,477,660,111.71 18,626,392,431.87 380,125,773.77 19,006,518,205.64 Person in charge of the company: Zeng Xiaoping Person in charge of accounting work: Wang Jun Person in charge of the accounting department: Wang Jun

Statement of changes in owner's equity of the parent company

January-December 2025

Unit: Yuan Currency: RMB 2025

Other equity instruments

Project

Paid-in capital (or share capital) Capital reserve Less: treasury shares Other comprehensive income Special reserves Surplus reserve Undistributed profits Total owners’ equity

Preferred shares Perpetual bonds Others

1. Ending balance of the previous year 8,831,250,228.00 364,221,097.83 1,015,141,479.04 1,696,878,905.84 -10,494,583.98 600,422,803.20 3,291,077,501.38 12,394,739,619.63 plus: changes in accounting policies

Early error correction

Others

2. Balance at the beginning of the year 8,831,250,228.00 364,221,097.83 1,015,141,479.04 1,696,878,905.84 -10,494,583.98 600,422,803.20 3,291,077,501.38 12,394,739,619.63

3. The amount of increase or decrease in the current period (decrease is filled in with "-"

279,000.00 -44,181.60 15,488,581.76 92,878,074.45 10,494,583.98 478,621.03 -21,640,941.40 -87,822,410.68 columns)

(1) Total comprehensive income 15,280,794.20 -25,948,530.59 -10,667,736.39

(2) Owner’s investment and capital reduction 279,000.00 -44,181.60 15,488,581.76 92,878,074.45 -77,154,674.29 1. Common shares invested by owners 92,878,074.45 -92,878,074.45 2. Capital invested by other equity instrument holders 279,000.00 -44,181.60 285,105.22 519,923.62 3. The amount of share-based payment included in owners’ equity 15,203,476.54 15,203,476.54 4. Others

(3) Profit distribution

1. Withdrawal from surplus reserve

2. Distributions to owners (or shareholders)

3. Others

(4) Internal carryover of owners’ equity -4,786,210.22 478,621.03 4,307,589.19

1. Conversion of capital reserves to capital (or share capital)

2. Conversion of surplus reserves into capital (or share capital)

3. Surplus reserve to cover losses

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4. Changes in defined benefit plans are carried forward to retained earnings

5. Other comprehensive income carried forward to retained earnings -4,786,210.22 478,621.03 4,307,589.19

6. Others

(5) Special reserves

1. Withdrawal in this period 19,462,417.16 19,462,417.16 2. Used in this period 19,462,417.16 19,462,417.16

(6) Others

4. Ending balance of the current period 8,831,529,228.00 364,176,916.23 1,030,630,060.80 1,789,756,980.29 600,901,424.23 3,269,436,559.98 12,306,917,208.95

2024

Other equity instruments

Project

Paid-in capital (or share capital) Capital reserve Less: treasury shares Other comprehensive income Special reserves Surplus reserve Undistributed profits Total owners’ equity

Preferred shares Perpetual bonds Others

1. Ending balance of the previous year 8,831,250,228.00 976,054,187.45 650,369,774.03 22,917,866.63 589,816,235.79 3,356,126,935.81 13,125,795,679.65 plus: Changes in accounting policies

Early error correction

Others

2. Balance at the beginning of the year 8,831,250,228.00 976,054,187.45 650,369,774.03 22,917,866.63 589,816,235.79 3,356,126,935.81 13,125,795,679.65

3. Amount of increase or decrease in the current period (decreases are filled in with "-" 1,046,509,131.81 -33,412,450.61 10,606,567.41 -65,049,434.43

364,221,097.83 39,087,291.59 -731,056,060.02 columns)

(1) Total comprehensive income -33,412,450.61 106,065,674.10 72,653,223.49

(2) Owner’s investment and capital reduction 364,221,097.83 39,087,291.59 1,046,509,131.81 -643,200,742.39 1. Ordinary shares invested by owners 1,196,509,136.29 -1,196,509,136.29 2. Capital invested by holders of other equity instruments 364,221,097.83 -2,291,431.05 361,929,666.78 3. The amount of share-based payment included in owners’ equity 41,378,722.64 -150,000,004.48 191,378,727.12 4. Others 0.00

(3) Profit distribution 10,606,567.41 -171,115,108.53 -160,508,541.12 1. Withdrawal from surplus reserve 10,606,567.41 -10,606,567.41 0.00 2. Distribution to owners (or shareholders) -160,508,541.12 -160,508,541.12 3. Others

(4) Internal carryover of owners’ equity

1. Conversion of capital reserves to capital (or share capital)

2. Conversion of surplus reserves into capital (or share capital)

3. Surplus reserve to cover losses

4. Changes in defined benefit plans are carried forward to retained earnings

5. Other comprehensive income carried forward to retained earnings

6. Others

(5) Special reserves

1. Withdrawal in this period 19,463,542.81 19,463,542.81 2. Used in this period 19,463,542.81 19,463,542.81

(6) Others

4. Ending balance of the current period 8,831,250,228.00 364,221,097.83 1,015,141,479.04 1,696,878,905.84 -10,494,583.98 600,422,803.20 3,291,077,501.38 12,394,739,619.63 Person in charge of the company: Zeng Xiaoping Person in charge of accounting work: Wang Jun Person in charge of the accounting department: Wang Jun

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3. Basic situation of the company

1. Company profile

√Applicable □Not applicable

1.1 Company establishment situation

Sichuan Hebang Biotechnology Co., Ltd. (formerly known as "Sichuan Hebang Co., Ltd.", changed its name to "Sichuan Hebang Biotechnology Co., Ltd." on July 31, 2015, hereinafter referred to as "the Company", "Company" or "Hebang Biotechnology") formerly known as Sichuan Leshan Hebang Chemical Co., Ltd. is a limited liability company established by Sichuan Hebang Investment Group Co., Ltd. (hereinafter referred to as "Hebang Group") and Zhang Lihua with a joint investment of RMB 48 million. It was approved and registered by the Leshan City Administration for Industry and Commerce of Sichuan Province on August 1, 2002.

1.2 Equity changes and capital increases

(1) On February 28, 2008, according to the "Resolution of the Founding Meeting and First Shareholders' Meeting of Sichuan Hebang Co., Ltd." and the "Sponsor Agreement", the company was converted into a joint-stock company as a whole by converting the net assets as of January 31, 2008 into shares. As of January 31, 2008, the company's net assets were RMB 363,449,735.90, which was converted into equity capital of RMB 300,000,000 at a ratio of 1.2115:1, and the balance of RMB 63,449,735.90 was transferred to capital reserves. This overall change has been verified by Sichuan Junhe Accounting Firm Junhe Yanzi (2008) No. 2002 Capital Verification Report. After the overall change, the company's registered capital was RMB 300 million, of which: Hebang Group contributed RMB 265.74 million, accounting for 88.58%; Zhang Lihua contributed RMB 31.26 million, accounting for 10.42%; Zheng Dan contributed RMB 3 million, accounting for 1%.

(2) On March 2, 2009, Zhang Lihua and He Zhenggang signed an "Equity Transfer Agreement" to transfer the 10.42% equity of the company held by Zhang Lihua to the natural person He Zhenggang. After the equity change, the company's registered capital is still 300 million yuan, with Hebang Group investing 265.74 million yuan, accounting for 88.58%; He Zhenggang investing 31.26 million yuan, accounting for 10.42%; Zheng Dan investing 3 million yuan, accounting for 1%.

(3) On May 10, 2010, Zheng Dan signed an Equity Transfer Agreement with Hebang Group, transferring his 1% equity stake in the company to Hebang Group. After the equity change, the company's registered capital is still RMB 300 million, with Hebang Group investing RMB 268.74 million, accounting for 89.58%; He Zhenggang investing RMB 31.26 million, accounting for 10.42%.

(4) On December 14, 2010, the company introduced eight investors including Harbin Hengshi Dachang Technology Co., Ltd. to increase capital. The new investors contributed a total of RMB 250,000,000.00, which was converted into a total of 50,000,000.00 shares at a price of RMB 5 per share, and the remaining RMB 200,000,000.00 was used as capital reserve. This change has been verified by Sichuan Huaxin (Group) Accounting Firm Chuanhua Xinyan (2010) No. 86 Capital Verification Report.

(5) As approved by the China Securities Regulatory Commission's "Zhengjian Xu [2012] No. 704" document, the company made an initial public offering of 100,000,000.00 RMB ordinary shares (A shares) on July 19, 2012, with an issue price of RMB 17.50 per share. After the issuance, the company increased its registered capital by RMB 100 million.

(6) On April 17, 2014, the company issued the China Securities Regulatory Commission’s “Reply on Approving Sichuan Hebang Co., Ltd.’s Issuance of Shares to Sichuan Salt Industry Corporation to Purchase Assets” (CSRC Permit [2014] 363 No.), purchased 51% of the equity of Leshan Hebang Agricultural Science and Technology Co., Ltd. (hereinafter referred to as "Hebang Agricultural Science") held by Sichuan Salt Industry Corporation (hereinafter referred to as "Sichuan Salt Company") with a transaction price of 814.3253 million yuan and a non-public offering of 55,547,425 shares (issue price: 14.66 yuan/share).

(7) On July 11, 2014, in accordance with the resolution of the 2013 Annual General Meeting of Shareholders, the company distributed a cash dividend of RMB 0.04 (tax included) to all shareholders per share based on the total share capital of 505,547,425 shares on April 17, 2014. At the same time, the company converted capital reserve funds into share capital and transferred 1 share per share to all shareholders. After this transfer, the company's share capital changed to 1,011,094,850 shares.

(8) On May 8, 2015, in accordance with the resolution of the first extraordinary general meeting of shareholders in 2014, the China Securities Regulatory Commission's "Reply on the Approval of the Non-public Issuance of Stocks by Sichuan Hebang Co., Ltd." (CSRC License [2015] No. 460) and the revised Articles of Association, the company non-publicly issued 92,984,676 shares (the issuance price is 15.01 yuan/share). After this issuance, the company's share capital changed to 1,104,079,526 shares.

(9) On September 2, 2015, according to the resolution of the third extraordinary general meeting of shareholders in 2015, the company used the total share capital of 1,104,079,526 shares as of June 30, 2015 as the base, and transferred 20 shares to all shareholders for every 10 shares from the capital reserve fund. After this transfer, the company's share capital changed to 3,312,238,578 shares.

(10) On September 29, 2016, the company, in accordance with the resolution of the fifth extraordinary shareholders’ meeting in 2015 and the China Securities Regulatory Commission’s “Reply on Approving the Non-public Issuance of Stocks by Sichuan Hebang Biotechnology Co., Ltd.” (CSRC Permit [2016] 917

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No.) and the revised articles of association, the company non-publicly issued 701,966,071 shares (issue price is 5.60 yuan/share). After this issuance, the company's share capital changed to 4,014,204,649 shares.

(11) On July 5, 2017, according to the resolution of the 2016 Annual General Meeting of Shareholders, the company used the total share capital of 4,014,204,649 shares as of December 31, 2016 as the base, transferred 10 shares to all shareholders for every 10 shares from the capital reserve, distributed 2 bonus shares (tax included) to all shareholders for every 10 shares with undistributed profits, and distributed a cash dividend of 0.1 for every 10 shares. Yuan (including tax). After this distribution, the company's share capital changed to 8,831,250,228 shares.

(12) On October 28, 2024, as approved by the China Securities Regulatory Commission (hereinafter referred to as the "China Securities Regulatory Commission") Securities Regulatory Commission License [2024] No. 1233, the company issued 46 million convertible corporate bonds to unspecified objects, each with a face value of 100.00 yuan, with a total issuance of 4.60 billion yuan, and the bond term is 6 years. As approved by the Shanghai Stock Exchange's Self-Regulation Decision [2024] No. 153, the company's convertible corporate bonds will be listed on the Shanghai Stock Exchange for trading on November 19, 2024. The bond's abbreviation is "Hebang Convertible Bonds" and the bond code is "113691". As of December 31, 2025, the cumulative conversion amount of "Hebang Convertible Bonds" was 558,000 yuan, and the cumulative number of shares formed due to the conversion was 279,000 shares, accounting for 0.0032% of the company's total issued shares before the convertible bonds were converted. The company's post-change share capital is RMB 8,831,529,228. Among them, Hebang Group holds 22.24% of the shares and He Zhenggang holds 4.67%. Hebang Group is still the company's largest shareholder.

As of December 31, 2025, the company's share capital was 8,831,529,228 shares.

1.3 Company registered address, organizational form, headquarters address

The company obtained the "Enterprise Legal Person Business License" issued by the Leshan City Administration for Industry and Commerce of Sichuan Province on April 19, 2022. Business license registration number/unified social credit code: 91511100740039656L; address: Mianba Village, Niuhua Town, Wutongqiao District, Leshan City; legal representative: Zeng Xiaoping.

1.4 The company’s business nature and main operating activities

(1) Nature of business

The company is engaged in the manufacturing industry, mainly engaged in the manufacturing of chemicals, pesticides, feed additives, glass and products, photovoltaic materials and products, and the development of salt mines and phosphate mines.

(2) Main business activities

The products and services provided by the company mainly include phosphate rock, salt mine, joint alkali products, diglyphosate, glyphosate, diacetonitrile, methionine, smart glass, photovoltaic glass and components, silicon wafers, pesticide products, photovoltaic engineering construction, natural gas pipeline transportation and transfer, refined oil sales, etc.

1.5 Name of the largest shareholder and ultimate actual controller

The company's largest shareholder is Hebang Group, and its ultimate actual controller is natural person He Zhenggang.

1.6 Approval date for issuance of financial reports

This financial statement has been approved for issuance by the company's board of directors on April 20, 2026.

4. Basis for preparation of financial statements

1. Basics of preparation

The company's financial statements are prepared on a going concern basis. Based on actual transactions and events, it is prepared in accordance with the Accounting Standards for Business Enterprises and its supporting guidelines, interpretations and other relevant regulations promulgated by the Ministry of Finance in February 2006 and thereafter (hereinafter collectively referred to as the "Accounting Standards for Business Enterprises"), as well as the disclosure provisions of the China Securities Regulatory Commission's "Information Disclosure and Preparation Rules for Companies that Offer Securities to the Public No. 15 - General Provisions for Financial Reports" (revised in 2023).

In accordance with the relevant provisions of the Accounting Standards for Business Enterprises, the Company's accounting is based on the accrual basis. Except for certain financial instruments, these financial statements are measured on the basis of historical cost. If an asset is impaired, corresponding impairment provisions will be made in accordance with relevant regulations.

2. Continuous operation

√Applicable □Not applicable

The company has the ability to continue operating within 12 months from the end of the reporting period. There are no major events that affect its ability to continue operating. The financial statements are prepared based on the assumption of going concern. Based on the information currently available to the company and taking into account factors such as macro policy risks, market operating risks, the company's current or long-term profitability, debt solvency, financial resource support, etc., the company believes that there are no matters or circumstances that would cast significant doubt on the company's ability to continue operating in the next 12 months, and it is reasonable to prepare financial statements on a going concern basis.

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5. Important accounting policies and accounting estimates

Specific accounting policies and accounting estimation tips:

√Applicable □Not applicable

The Company determines specific accounting policies and accounting estimates based on the characteristics of production and operations, which are mainly reflected in the provision method for bad debt provisions for receivables, the valuation method for inventories, depreciation of fixed assets and amortization of intangible assets, etc.

1. Statement on compliance with corporate accounting standards

The financial statements and notes prepared by the company comply with the requirements of the "Accounting Standards for Business Enterprises" and truly and completely reflect the company's financial status as of December 31, 2025, as well as operating results, cash flow and other relevant information for 2025. In addition, the company's financial statements comply in all material respects with the disclosure requirements of the China Securities Regulatory Commission's "Information Disclosure and Preparation Rules for Companies that Offer Securities to the Public No. 15 - General Provisions on Financial Reports" (revised in 2023) regarding financial statements and their notes.

2. Accounting period

The company's fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.

3. Business cycle

√Applicable □Not applicable

The normal operating cycle refers to the period from the purchase of assets for processing to the realization of cash or cash equivalents. The company uses 12 months/1 year as an operating cycle and uses it as the liquidity classification standard for assets and liabilities.

4. Accounting standard currency

The Company and its domestic subsidiaries use RMB as their functional currency for accounting. Overseas subsidiaries such as Hebang Biotech (Hong Kong) Investment Co., Ltd., S.T.K. Stockton Group Ltd, PAN PACIFIC INDUSTRIES PTY LTD, PAN PACIFIC RESOURCES PTY LTD, and PT HEBANG BIOTECHNOLOGY INDONESIA are engaged in overseas operations, and the currency in the main economic environment in which they operate is the standard currency for accounting.

5. Determination method and selection basis of materiality criteria

√Applicable □Not applicable

Project Materiality Criteria

Important individual accounts receivable with provision for bad debts

The amount of a single receivable exceeds 5 million yuan

item

Bad debt provisions for important receivables are recovered or reversed. The amount of a single receivable exceeds 5 million yuan.

Write-off of important accounts receivable. The amount of a single account receivable exceeds 5 million yuan.

Important construction projects under construction have relatively large investment budgets and end-of-period balances greater than 200 million yuan

Non-wholly-owned subsidiaries whose total assets, total revenue, and total profits reach or exceed the assets of the consolidated statement

20% of the total amount, total revenue and total profit of subsidiaries. Important accounts payable aged more than 1 year

The amount of a single payable exceeds 7 million yuan

and other payables

Important cash flow from investing activities Cash flow from a single investment activity exceeds 100 million yuan

6. Accounting treatment methods for business combinations under the same control and those not under the same control

√Applicable □Not applicable

6.1 Business combination under common control

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If the enterprises participating in the merger are ultimately controlled by the same party or the same parties before and after the merger and the control is not temporary, it is a business merger under the same control. The merger date is the date when the merging party actually obtains control over the merged party.

If the merging party pays cash, transfers non-cash assets or assumes debt as the merger consideration, the investment cost of the long-term equity investment will be the share of the book value of the owner's equity of the merged party on the merger date. The difference between the investment cost of long-term equity investment and the cash paid, non-cash assets transferred and the book value of debts assumed shall be adjusted to the equity premium in the capital reserve; if the equity premium in the capital reserve is insufficient to offset, the retained earnings shall be adjusted.

6.2 Business combination not under common control

If the parties involved in the merger are not ultimately controlled by the same party or the same parties before and after the merger, it is a business merger not under the same control. The purchase date refers to the date when the purchaser actually obtains control over the purchased party.

The merger cost paid by the buyer is the sum of the fair values ​​on the purchase date of the assets paid to obtain control of the purchased party, liabilities incurred or assumed, and equity securities issued. Intermediary fees such as auditing, legal services, evaluation consulting and other related management fees incurred by the buyer for the business merger shall be included in the current profit and loss when incurred; transaction costs of equity securities or debt securities issued by the buyer as consideration for the merger shall be included in the initial recognition amount of the equity securities or debt securities. The difference between the fair value of the paid asset and its book value is included in the current profit and loss. The purchaser allocates the merger costs on the purchase date and confirms the fair value of the identifiable assets, liabilities and contingent liabilities of the purchased party. When the merger cost is greater than the fair value share of the acquiree's identifiable net assets obtained in the merger, the difference is recognized as goodwill. When the merger cost is less than the fair value share of the acquiree's identifiable net assets obtained in the merger, the difference is included in the current profit and loss.

7. Judgment standards for control and preparation methods of consolidated financial statements

√Applicable □Not applicable

7.1 Judgment criteria for control

Control means that the company has power over the investee, enjoys variable returns by participating in the investee's relevant activities, and has the ability to use its power over the investee to affect the amount of returns. The Company will reassess when changes in relevant facts and circumstances result in changes in the relevant elements involved in the definition of control.

The company includes all controlled subsidiaries (including separate entities controlled by the company) into the scope of consolidated financial statements, including enterprises controlled by the company, divisible parts of investee units and structured entities.

7.2 Preparation method of consolidated financial statements

Based on the individual accounting statements of the parent company and the subsidiaries included in the consolidation scope, the accounting policies adopted by the parent company and subsidiaries are unified, and long-term equity investments accounted for by the cost method in subsidiaries are adjusted according to the equity method, the amounts of each item are summarized, and investments, current accounts and significant internal transactions between the parent company and subsidiaries are offset, and consolidated accounting statements are prepared.

7.3 Principles for determining the scope of consolidation

The Company will include all enterprises and entities that form substantial control into the scope of the consolidated financial statements.

8. Classification of joint arrangements and accounting treatment of joint operations

□Applicable √Not applicable

9. Determination standards for cash and cash equivalents

The company recognizes investments as cash equivalents that are short-term (generally due within three months from the date of purchase), highly liquid, easily convertible into known amounts of cash, and have little risk of value changes.

Restricted bank deposits are not included as cash and cash equivalents in the cash flow statement.

10. Foreign currency business and foreign currency statement conversion

√Applicable □Not applicable

When processing foreign currency transactions and converting foreign currency financial statements, the foreign currency amount is converted into RMB and reflected using the central parity rate of the RMB foreign exchange rate announced by the People's Bank of China on the day of the transaction; the company's foreign currency exchange business or transactions involving foreign currency exchange should be converted according to the exchange rate actually used in the transaction (i.e., the bank's buying price or selling price).

On the balance sheet date, foreign currency business is divided into foreign currency monetary items and foreign currency non-monetary items for accounting treatment.

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10.1 Foreign currency monetary items

Monetary items refer to the monetary funds held by the enterprise and the assets to be collected or liabilities to be paid in fixed or determinable amounts. For foreign currency monetary items, exchange differences arising from settlement or conversion using the spot exchange rate on the balance sheet date are included in the current profit and loss, and the RMB amount of the foreign currency monetary item is increased or decreased at the same time.

10.2 Foreign currency non-monetary items

Non-monetary items refer to items other than monetary items, including inventories, long-term equity investments, fixed assets, intangible assets, etc.

10.2.1 Foreign currency non-monetary items measured at historical cost have been converted at the spot exchange rate on the date of transaction, so their original RMB amounts should not be changed on the balance sheet date, and no exchange differences will arise.

10.2.2 Foreign currency non-monetary items measured at fair value, such as trading financial assets (stocks, funds, etc.), are converted using the spot exchange rate on the date when the fair value is determined. The difference between the converted RMB amount and the original RMB amount is treated as a change in fair value (including exchange rate changes) and is included in the current profit and loss.

10.2.3 Capital invested in foreign currency

When the company receives capital invested in foreign currencies from investors, it is converted using the spot exchange rate on the date of the transaction.

11. Financial instruments

√Applicable □Not applicable

Financial instruments include financial assets, financial liabilities and equity instruments.

11.1 Classification of financial instruments

Based on the company's business model for managing financial assets and the contractual cash flow characteristics of financial assets, financial assets are classified upon initial recognition as: financial assets measured at amortized cost, financial assets (debt instruments) measured at fair value with changes included in other comprehensive income, and financial assets measured at fair value with changes included in current profits and losses.

The business model aims at collecting contractual cash flows and the contractual cash flows are only the payment of principal and interest based on the outstanding principal amount, and is classified as a financial asset measured at amortized cost; the business model aims at both collecting contractual cash flows and selling the financial assets and the contractual cash flows If the amount is only the payment of principal and interest based on the outstanding principal amount, it is classified as a financial asset (debt instrument) measured at fair value and its changes are included in other comprehensive income; other financial assets are classified as financial assets measured at fair value and its changes are included in the current profit and loss.

For investments in non-trading equity instruments, the Company determines whether to designate them as financial assets (equity instruments) measured at fair value with changes included in other comprehensive income upon initial recognition. Financial liabilities are classified upon initial recognition into: financial liabilities measured at fair value through profit or loss for the current period and financial liabilities measured at amortized cost.

11.2 Recognition basis and measurement method of financial instruments

11.2.1 Financial assets measured at amortized cost

Financial assets measured at amortized cost include contract assets, notes receivable, accounts receivable, other receivables, long-term receivables, debt investments, etc., which are initially measured at fair value, and relevant transaction costs are included in the initial recognition amount; accounts receivable that do not contain significant financing components and accounts receivable that the company decides not to consider financing components that do not exceed one year are initially measured at the contract transaction price. Interest calculated using the actual interest rate method during the holding period is included in the current profit and loss. When recovered or disposed of, the difference between the price obtained and the book value of the financial asset will be included in the current profit and loss.

11.2.2 Financial assets (debt instruments) measured at fair value through other comprehensive income

Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income include receivables financing, other debt investments, etc., which are initially measured at fair value, and relevant transaction costs are included in the initial recognition amount. The financial assets are subsequently measured at fair value, and changes in fair value are included in other comprehensive income, except for interest calculated using the effective interest rate method, impairment losses or gains and exchange gains and losses. When derecognition is terminated, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in the current profit and loss.

11.2.3 Financial assets (equity instruments) measured at fair value through other comprehensive income

Financial assets (equity instruments) measured at fair value through other comprehensive income, including other equity instrument investments, are initially measured at fair value, and relevant transaction costs are included in the initial recognition amount. The financial assets are subsequently measured at fair value, and changes in fair value are included in other comprehensive income. Dividends received are included in the current profit and loss. Upon derecognition, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in retained earnings.

11.2.4 Financial assets measured at fair value through profit or loss for the current period

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Financial assets measured at fair value and whose changes are included in the current profit and loss include trading financial assets, derivative financial assets, other non-current financial assets, etc., which are initially measured at fair value, and related transaction costs are included in the current profit and loss. The financial assets are subsequently measured at fair value, and changes in fair value are included in current profits and losses. When derecognition is terminated, the difference between its fair value and the initial recorded amount is recognized as investment income, and the gains and losses from changes in fair value are adjusted at the same time.

11.2.5 Financial liabilities measured at fair value through profit or loss for the current period

Financial liabilities measured at fair value and whose changes are included in the current profit and loss include trading financial liabilities, derivative financial liabilities, etc., which are initially measured at fair value, and related transaction costs are included in the current profit and loss. The financial liability is subsequently measured at fair value, and changes in fair value are included in the current profit and loss. When derecognition is terminated, the difference between its fair value and the initial recorded amount is recognized as investment income, and the gains and losses from changes in fair value are adjusted at the same time.

11.2.6 Financial liabilities measured at amortized cost

Financial liabilities measured at amortized cost include short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables. They are initially measured at fair value, and related transaction costs are included in the initial recognition amount. Interest calculated using the actual interest rate method during the holding period is included in the current profit and loss. When the recognition is terminated, the difference between the consideration paid and the book value of the financial liability will be included in the current profit and loss.

11.3 Recognition basis and measurement method of financial asset transfer

When a company transfers financial assets, if almost all the risks and rewards of ownership of the financial assets have been transferred to the transferee, the financial assets will be derecognised; if almost all the risks and rewards of ownership of the financial assets are retained, the recognition of the financial assets will not be deactivated.

When judging whether the transfer of financial assets meets the above conditions for derecognition of financial assets, the principle of substance over form is adopted. The company distinguishes the transfer of financial assets into overall transfer and partial transfer of financial assets. If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following two amounts will be included in the current profit and loss:

The difference between the consideration paid and the book value of the financial liability is included in the current profit and loss.

11.3.1 The book value of the transferred financial assets;

11.3.2 The sum of the consideration received due to the transfer and the cumulative amount of changes in fair value originally directly included in the owner's equity (if the financial assets involved in the transfer are available-for-sale financial assets).

If a partial transfer of a financial asset meets the conditions for derecognition, the overall book value of the transferred financial asset will be apportioned between the derecognized part and the non-derecognized part according to their respective relative fair values, and the difference between the following two amounts shall be included in the current profit and loss:

(1) The book value of the part whose recognition is terminated;

(2) The sum of the consideration for the derecognition part and the amount corresponding to the derecognition part of the cumulative amount of changes in fair value originally directly included in the owner's equity (if the financial assets involved in the transfer are available-for-sale financial assets).

If the transfer of financial assets does not meet the conditions for derecognition, the financial assets will continue to be recognized, and the consideration received will be recognized as a financial liability.

11.4 Conditions for derecognition of financial liabilities

If the current obligations of a financial liability have been discharged in whole or in part, the recognition of the financial liability or part of it will be terminated; if the company signs an agreement with the creditor to replace the existing financial liability by assuming a new financial liability, and the contract terms of the new financial liability are substantially different from the existing financial liability, the recognition of the existing financial liability will be terminated and the new financial liability will be recognized at the same time.

If all or part of the contract terms of an existing financial liability are substantially modified, the recognition of the existing financial liability or part of it will be terminated, and the financial liability after the modified terms will be recognized as a new financial liability.

When all or part of a financial liability is derecognised, the difference between the book value of the derecognized financial liability and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) shall be included in the current profit and loss.

If the company repurchases part of a financial liability, it will allocate the overall book value of the financial liability based on the relative fair value of the continued recognition part and the derecognized part on the repurchase date. The difference between the book value allocated to the derecognized part and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) is included in the current profit and loss.

11.5 Determination method of fair value of financial assets and financial liabilities

For financial instruments with an active market, their fair value is determined based on the quoted price in the active market. For financial instruments for which there is no active market, valuation techniques are used to determine their fair value. When valuing, the Company adopts valuation techniques that are applicable under the current circumstances and supported by sufficient available data and other information, selects input values ​​that are consistent with the characteristics of the assets or liabilities considered by market participants in transactions of related assets or liabilities, and gives priority to the use of relevant observable input values. Unobservable inputs are used only when the relevant observable inputs are unobservable or impracticable to obtain.

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11.6 Testing methods and accounting treatment methods for impairment of financial assets (excluding accounts receivable)

The Company considers all reasonable and evidence-based information, including forward-looking information, to estimate the expected credit losses of financial assets measured at amortized cost and financial assets (debt instruments) measured at fair value with changes included in other comprehensive income, individually or in combination. The measurement of expected credit losses depends on whether the financial asset's credit risk has increased significantly since its initial recognition. If the credit risk of the financial instrument has increased significantly since initial recognition, the Company will measure its loss provisions at an amount equivalent to the expected credit losses of the financial instrument throughout its lifetime; if the credit risk of the financial instrument has not increased significantly since initial recognition, the Company will measure its loss provisions at an amount equivalent to the expected credit losses of the financial instrument within the next 12 months. The resulting increase or reversal of loss provisions is included in the current profit and loss as impairment losses or gains.

When determining whether credit risk has increased significantly since initial recognition, the Company considers reasonable and evidence-based information that can be obtained without unnecessary additional cost or effort, including based on the Company's historical data and forward-looking information.

If the credit risk of a financial instrument is low on the balance sheet date, the Company considers that the credit risk of the financial instrument has not increased significantly since initial recognition.

12. Notes receivable

√Applicable □Not applicable

Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

√Applicable □Not applicable

Please refer to "Note V. 11 Financial Instruments" for details of the company's determination method and accounting treatment method of expected credit losses on notes receivable. The company refers to historical credit loss experience, combined with current conditions and judgments of future economic conditions, divides notes receivable into several combinations based on credit risk characteristics, and calculates expected credit losses on the basis of combinations. The basis for determining the combination is as follows:

Combination name Basis for determining combination Provision method

With reference to historical credit loss experience, combined with current conditions and predictions of future economic conditions, expected credit losses are calculated through default risk exposure and the expected credit loss rate throughout the duration.

Ticket type

Refer to historical credit loss experience, combined with the current situation and the forecast of future economic conditions, refer to the aging of accounts receivable and expected credit

Use the loss rate comparison table to calculate expected credit losses

Account aging calculation method based on aging confirmation credit risk characteristic combination

□Applicable √Not applicable

Judgment criteria for individual provision of bad debt provisions based on individual provision

□Applicable √Not applicable

13. Accounts receivable

√Applicable □Not applicable

Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

√Applicable □Not applicable

For accounts receivable, regardless of whether there is a significant financing component, the Company measures loss provisions based on expected credit losses throughout the duration.

For accounts receivable whose credit risk is significantly different from the combined credit risk, the company accrues expected credit losses on an individual basis. The Company separately determines credit losses for accounts receivable that have sufficient evidence to assess expected credit losses at a reasonable cost at the individual instrument level. When there is insufficient evidence to assess expected credit losses at a reasonable cost at the individual instrument level, the company refers to historical credit loss experience, combined with current conditions and judgments of future economic conditions, divides accounts receivable into portfolios based on credit risk characteristics, and calculates expected credit losses on the basis of the portfolios. The basis for determining the combination is as follows:

Combination name Basis for determining combination Provision method

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Refer to historical credit loss experience, combined with the current situation and future economic conditions based on age classification of similar credit

Forecast the risk portfolio and prepare accounts receivable based on the aging risk characteristics of accounts receivable.

Comparison table with expected credit loss rate to calculate expected credit losses

Calculate expected credit losses by referring to historical credit loss experience, combined with current conditions and predictions of the future economic conditions of the related party portfolio within the consolidated scope Related parties within the consolidated scope, through default risk exposure and the expected credit loss rate throughout the duration

Account aging calculation method based on aging confirmation credit risk characteristic combination

√Applicable □Not applicable

The Company uses aging to assess the expected credit losses of such portfolios. This type of portfolio has the same risk characteristics, and the aging information can reflect the solvency of this type of portfolio and the receivables when they mature. On the balance sheet date, the company refers to historical credit loss experience, combined with current conditions and predictions of future economic conditions, prepares a comparison table between the aging of accounts receivable and expected credit loss rates, and calculates expected credit losses.

Comparison table of risk portfolio aging and expected credit loss rate:

Account aging Expected loss reserve ratio of accounts receivable

Within 1 year 5%

1-2 years 10%

2-3 years 20%

3-4 years 50%

4-5 years 80%

More than 5 years 100%

Judgment criteria for single provision based on the determination of individual provision for bad debts

√Applicable □Not applicable

For accounts receivable whose credit risk is significantly different from the combined credit risk, the company accrues expected credit losses on an individual basis. The Company separately determines credit losses for accounts receivable that have sufficient evidence to assess expected credit losses at a reasonable cost at the individual instrument level.

14. Receivables Financing

√Applicable □Not applicable

Since most of the company's notes receivable are used to endorse payment for goods, they are listed in "Receivables Financing" as "financial assets measured at fair value and whose changes are included in other comprehensive income". In view that the term of the company's notes receivable does not exceed one year, the time value of funds factor has no significant impact on the fair value; and in actual business, both parties to the note endorsement recognized that the face value of the note is equal to offset the current accounts, and the impact of changes in fair value on its end-of-period measurement is significantly insignificant. Therefore, the company uses the face value of the note as the fair value of the receivable financing project.

Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

√Applicable □Not applicable

For details on the determination method and accounting treatment method of the company's expected credit losses for receivables financing, please refer to "Note V. 11 Financial Instruments".

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Account aging calculation method based on aging confirmation credit risk characteristic combination

□Applicable √Not applicable

Judgment criteria for individual provision of bad debt provisions based on individual provision

□Applicable √Not applicable

15. Other receivables

√Applicable □Not applicable

Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

√Applicable □Not applicable

Please refer to "Note V. 11 Financial Instruments" for details of the company's determination method and accounting treatment method for other receivables' expected credit losses. When there is insufficient evidence to assess expected credit losses at a reasonable cost at the individual instrument level, the company refers to historical credit loss experience, combined with current conditions and judgments of future economic conditions, divides other receivables into portfolios based on credit risk characteristics, and calculates expected credit losses on the basis of the portfolio. The basis for determining the combination is as follows:

Combination name Basis for determining combination Provision method

With reference to historical credit loss experience, combined with current similar credit risk conditions classified by account age and predictions of future economic conditions, the risk portfolio

Other receivables with risk characteristics Prepare a comparison table between the aging of other receivables and expected credit loss rates to calculate expected credit losses

With reference to historical credit loss experience, combined with current conditions and predictions of future economic conditions, the combination of related parties within the consolidation scope Related parties within the consolidation scope

Calculate expected credit losses through default risk exposure and lifetime expected credit loss rate

Account aging calculation method based on aging confirmation credit risk characteristic combination

√Applicable □Not applicable

The Company uses aging to assess the expected credit losses of such portfolios. This type of portfolio has the same risk characteristics, and the aging information can reflect the solvency of this type of portfolio and the receivables when they mature. On the balance sheet date, the company refers to historical credit loss experience, combined with current conditions and predictions of future economic conditions, prepares a comparison table between the aging of other receivables and expected credit loss rates, and calculates expected credit losses.

Comparison table of risk portfolio aging and expected credit loss rate:

Aging Expected loss reserve ratio of other receivables

Within 1 year 5%

1-2 years 10%

2-3 years 20%

3-4 years 50%

4-5 years 80%

More than 5 years 100%

Judgment criteria for individual provision of bad debt provisions based on individual provision

√Applicable □Not applicable

For other receivables whose credit risk is significantly different from the combined credit risk, the company accrues expected credit losses on an individual basis. The Company separately determines the credit losses of other receivables for which there is sufficient evidence to assess expected credit losses at a reasonable cost at the individual instrument level.

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16. Inventory

√Applicable □Not applicable

Inventory categories, issue valuation methods, inventory systems, and amortization methods for low-value consumables and packaging materials

√Applicable □Not applicable

16.1 Inventory classification

Inventories are divided into raw materials, packaging, low-value consumables, goods in stock, work in progress and goods shipped.

16.2 Measurement of inventories

Inventories are initially measured at cost. Inventory costs include purchasing costs, processing costs and other costs. The following expenses shall be recognized as current profits and losses when incurred and shall not be included in inventory costs:

Abnormal consumption of direct materials, direct labor and manufacturing expenses;

Warehousing costs (excluding costs necessary to reach the next production stage during the production process);

Other expenditures not attributable to bringing the inventory to its present location and condition are not attributable.

Borrowing costs that should be included in inventory costs shall be treated in accordance with Note 5.23 Borrowing costs. The cost of inventories invested by investors shall be determined based on the value stipulated in the investment contract or agreement, unless the value stipulated in the contract or agreement is unfair. When the company provides labor services, the direct labor and other direct expenses incurred by the personnel engaged in providing labor services as well as attributable indirect expenses shall be included in the inventory cost. 16.3 Inventory valuation methods and amortization methods

Raw materials, inventory goods and shipped goods are accounted for using the weighted average method when shipped; low-value consumables are accounted for using the one-time amortization method; packaging materials are accounted for using the one-time amortization method when shipped.

16.4 Inventory inventory system

The raw materials and finished products used as raw materials in the chemical and agricultural sectors are subject to a physical inventory system, other finished products are subject to a perpetual inventory system, and the inventory of the photovoltaic sector is subject to a perpetual inventory system.

Recognition standards and accrual methods for inventory depreciation provisions

√Applicable □Not applicable

At the end of the period, inventories are measured at the lower of cost and net realizable value. The difference between the cost of the inventory and its net realizable value is accrued as a provision for inventory depreciation and included in the current profit and loss.

Inventory depreciation provisions should generally be made based on individual inventory items; for inventories with large quantities and low unit prices, inventory depreciation provisions can be made based on inventory categories; inventories related to product series that have similar purposes or end-uses and are produced and sold in the same region, and it is difficult to distinguish them from other items in the product series for valuation, can make inventory depreciation provisions on a consolidated basis. For materials held for production, if the net realizable value of the finished goods produced is higher than the cost, the materials shall still be measured at cost; if the net realizable value of the finished goods produced is lower than the cost, the materials shall be measured at the net realizable value.

The combination categories and basis for determining inventory depreciation provisions according to the combination, and the basis for determining the net realizable value of different types of inventories □ Applicable √ Not applicable

The calculation method and basis for determining the net realizable value of each warehouse age combination based on the inventory age confirmation

□Applicable √Not applicable

17. Contract assets

√Applicable □Not applicable

Recognition methods and standards for contract assets

√Applicable □Not applicable

The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The right to receive consideration for which the Company has transferred goods or provided services to a customer (and that right is dependent on factors other than the passage of time) is shown as a contract asset. Contract assets and contract liabilities under the same contract are presented on a net basis.

Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

√Applicable □Not applicable

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Refer to the above-mentioned determination method and accounting treatment method of accounts receivable.

Account aging calculation method based on aging confirmation credit risk characteristic combination

√Applicable □Not applicable

Refer to the above-mentioned determination method and accounting treatment method of accounts receivable.

Judgment criteria for single provision based on the determination of individual provision for bad debts

√Applicable □Not applicable

Refer to the above-mentioned determination method and accounting treatment method of accounts receivable.

18. Non-current assets or disposal groups held for sale

√Applicable □Not applicable

None

Recognition standards and accounting treatment methods for non-current assets or disposal groups classified as held for sale

√Applicable □Not applicable

18.1 Classification of non-current assets or disposal groups held for sale

The company classifies non-current assets or disposal groups that meet the following conditions into the category held for sale: a. According to the practice of selling such assets or disposal groups in similar transactions, they can be sold immediately under the current conditions; b. The sale is very likely to occur, that is, the company has made a resolution on the sales plan and obtained a firm purchase commitment, and the sale is expected to be completed within one year.

If the non-current assets or disposal groups acquired by the Company specifically for resale meet the condition of "the sale is expected to be completed within one year" on the acquisition date, and are likely to meet other classification conditions for the held-for-sale category in the short term (usually 3 months), they will be classified as held-for-sale categories on the acquisition date.

If a transaction between unrelated parties fails to be completed within one year due to one of the following reasons beyond the control of the company, and the company is still committed to selling non-current assets or disposal groups, the non-current assets or disposal groups will continue to be classified as held for sale: a. The buyer or other party unexpectedly sets conditions that lead to the postponement of the sale, and the company has responded to these conditions in a timely manner Take action and expect to be able to successfully resolve the delay factors within one year from the setting of the conditions leading to the sale delay; b. Due to the occurrence of rare circumstances, the non-current assets or disposal groups held for sale cannot be completed within one year, and the company has taken necessary measures in response to these new circumstances within the first year and has re-satisfied the conditions for the classification of the held-for-sale category.

18.2 Measurement of non-current assets or disposal groups held for sale

(1) Initial measurement and subsequent measurement

During initial measurement and re-measurement on the balance sheet date of non-current assets or disposal groups held for sale, if their book value is higher than the net amount of fair value minus selling expenses, the book value will be written down to the net amount of fair value minus selling expenses. The amount of the write-down is recognized as asset impairment loss and included in the current profit and loss, and an impairment provision for assets held for sale is made at the same time.

For non-current assets or disposal groups that are classified as held for sale on the acquisition date, at the time of initial measurement, the initial measurement amount and the net amount of fair value minus selling expenses are compared assuming that they are not classified as held for sale, and the lower of the two is measured. Except for non-current assets or disposal groups acquired in business combinations, the difference arising from the initial measurement amount of non-current assets or disposal groups using their fair value minus selling expenses shall be included in the current profit and loss.

For the amount of asset impairment loss recognized by a disposal group held for sale, the book value of the goodwill in the disposal group is first deducted, and then the book value is deducted proportionally based on the proportion of the book value of each non-current asset in the disposal group.

No depreciation or amortization is provided for non-current assets held for sale or non-current assets in the disposal group, and interest and other expenses on liabilities in the disposal group held for sale continue to be recognized.

(2) Accounting treatment for reversal of asset impairment losses

If the net amount of the fair value of non-current assets held for sale less selling expenses increases on subsequent balance sheet dates, the previously written-down amount will be restored and reversed within the amount of asset impairment losses recognized after being classified as held-for-sale, and the reversed amount will be included in the current profit and loss. Impairment losses on assets recognized before being classified as held for sale are not reversed.

If the net amount of the fair value of the disposal group held for sale less selling expenses increases on the subsequent balance sheet date, the previously written-down amount will be restored and reversed within the amount of asset impairment losses recognized after the non-current assets were classified as held-for-sale, and the reversed amount will be included in the current profit and loss. The book value of goodwill that has been deducted and the asset impairment losses recognized before non-current assets are classified as held for sale are not reversed.

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The subsequent reversal amount of asset impairment losses recognized by the disposal group held for sale will increase its book value in proportion based on the proportion of the book value of various non-current assets in the disposal group except goodwill.

Determination standards and presentation methods for discontinued operations

√Applicable □Not applicable

Accounting treatment for no longer being classified as held for sale and derecognition

When a non-current asset or disposal group is no longer classified as a held-for-sale category because it no longer meets the conditions for classification into a held-for-sale category or when a non-current asset is removed from a held-for-sale disposal group, it is measured according to the lower of the following two: 1) The book value before being classified as a held-for-sale category, adjusted for the depreciation, amortization or impairment that would have been recognized if it was not classified as a held-for-sale category; 2) The recoverable amount.

When non-current assets or disposal groups held for sale are derecognised, the unrecognized gains or losses will be included in the current profits and losses.

19. Long-term equity investment

√Applicable □Not applicable

Equity investments in which the Company controls and has significant influence on the invested unit, as well as equity investments in joint ventures, are recognized as long-term equity investments.

19.1 Criteria for judging joint control and significant influence

Joint control refers to the shared control over an arrangement in accordance with relevant agreements, and the relevant activities of the arrangement must be decided only with the unanimous consent of the participants sharing control rights. If the company and other joint venture parties jointly control the invested unit and have rights to the net assets of the invested unit, the invested unit is a joint venture of the company.

19.2 Determination of initial investment cost

19.2.1 Long-term equity investment formed by business merger

Business mergers under common control: If the company pays cash, transfers non-cash assets or assumes debts, or issues equity securities as the merger consideration, the initial investment cost of the long-term equity investment will be the share of the book value of the owner's equity of the merged party in the consolidated financial statements of the ultimate controlling party on the merger date. If it is possible to control an investee under the same control due to additional investment or other reasons, the initial investment cost of the long-term equity investment shall be determined based on the share of the book value of the combined party's net assets in the final controlling party's consolidated financial statements on the merger date on the merger date. The difference between the initial investment cost of the long-term equity investment on the merger date and the book value of the long-term equity investment before the merger plus the book value of the new consideration for further acquisition of shares on the merger date is adjusted to the equity premium. If the equity premium is insufficient to offset it, the retained earnings are offset.

Merger of businesses not under the same control: The company shall use the merger cost determined on the purchase date as the initial investment cost of the long-term equity investment. If it is possible to exercise control over an investee unit that is not under the same control due to additional investment or other reasons, the sum of the book value of the original equity investment plus the cost of the new investment shall be used as the initial investment cost to be accounted for using the cost method.

19.2.2 Long-term equity investments obtained by other means

For long-term equity investments obtained by paying cash, the actual purchase price paid shall be regarded as the initial investment cost.

For long-term equity investments obtained by issuing equity securities, the initial investment cost shall be based on the fair value of the equity securities issued.

On the premise that the non-monetary asset exchange has commercial substance and the fair value of the assets exchanged or the assets exchanged can be reliably measured, the initial investment cost of the long-term equity investment exchanged in the non-monetary asset exchange shall be the fair value of the assets exchanged and the relevant taxes payable, unless there is conclusive evidence that the fair value of the assets exchanged is more reliable; for non-monetary asset exchanges that do not meet the above premises, the book value of the assets exchanged and the relevant taxes payable shall be used as the initial investment cost of the long-term equity investment exchanged.

For long-term equity investments obtained through debt restructuring, the initial investment cost is determined based on fair value.

19.3 Subsequent measurement and profit and loss recognition

19.3.1 Long-term equity investments accounted for using the cost method

The company's long-term equity investments in subsidiaries are accounted for using the cost method. In addition to the actual price paid when acquiring the investment or the cash dividends or profits that have been declared but not yet distributed included in the consideration, the company recognizes the current investment income based on the cash dividends or profits declared and distributed by the investee.

19.3.2 Long-term equity investments accounted for using the equity method

Long-term equity investments in associates and joint ventures are accounted for using the equity method. If the initial investment cost is greater than the fair value share of the investee's identifiable net assets that should be enjoyed at the time of investment, the initial investment cost of long-term equity investment will not be adjusted; if the initial investment cost is less than the fair value share of the investee's identifiable net assets that should be enjoyed at the time of investment, the difference will be included in the current profit and loss.

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The company recognizes investment income and other comprehensive income respectively according to its share of the net profit or loss and other comprehensive income realized by the investee, and adjusts the book value of the long-term equity investment at the same time. It calculates the share of the profits or cash dividends declared by the investee and reduces the book value of the long-term equity investment accordingly. For other changes in the owner's equity of the investee other than net profit and loss, other comprehensive income and profit distribution, the company adjusts the book value of the long-term equity investment and includes it in the owner's equity. When confirming the share of the investee's net profits and losses, the fair value of the investee's identifiable net assets when the investment is obtained is used as the basis, and the net profit of the investee is adjusted and recognized in accordance with the company's accounting policies and accounting period. During the period when the investment is held, if the invested unit prepares consolidated financial statements, the accounting shall be based on the amount attributable to the invested unit in the net profit, other comprehensive income and other changes in owner's equity in the consolidated financial statements. The unrealized profits and losses from internal transactions between the company and its associates and joint ventures are calculated according to the proportion attributable to the company, and are offset, and investment income is recognized on this basis. Unrealized internal transaction losses with invested entities, which are asset impairment losses, are recognized in full.

When the company confirms that it should share the losses incurred by the invested unit, it shall proceed in the following order: First, offset the book value of the long-term equity investment. Secondly, if the book value of the long-term equity investment is not sufficient to offset it, investment losses will continue to be recognized to the extent of the book value of other long-term equities that essentially constitute a net investment in the investee, and the book value of long-term receivable items, etc. will be offset. Finally, after the above processing, if the enterprise still bears additional obligations according to the investment contract or agreement, estimated liabilities will be recognized based on the estimated obligations and included in the current investment losses.

Significant influence means having the power to participate in the financial and operating decisions of an enterprise, but not being able to control or jointly control the formulation of these policies with other parties. If the investing enterprise can exert significant influence on the invested unit, the invested unit shall be an associate of the company.

20. Investment real estate

Not applicable

21. Fixed assets

(1). Confirm conditions

√Applicable □Not applicable

Fixed assets refer to tangible assets that have the following characteristics:

(1) Held for the purpose of producing goods, providing services, leasing or operating and managing;

(2) The service life exceeds one accounting year.

Fixed asset valuation

(1) For outsourced fixed assets, the recorded value shall be based on the actual purchase price paid and relevant taxes and fees, as well as other expenditures directly attributable to the asset in order to bring the fixed asset to its intended usable state, such as site preparation fees, transportation fees, loading and unloading fees, installation fees and professional service fees, etc. as the recorded value;

If the purchase price of a fixed asset is deferred beyond normal credit conditions and is essentially financing in nature, the cost of the fixed asset shall be determined based on the present value of the purchase price. The difference between the actual payment and the present value of the purchase price, except for those that should be capitalized, will be included in the current profit and loss during the credit period.

(2) For self-constructed fixed assets, the necessary expenditures incurred before the asset reaches its intended usable state shall be deemed as the recorded value.

(3) Fixed assets acquired by the debtor in the form of non-cash assets to offset debts shall be valued at their fair value; fixed assets exchanged in non-monetary transactions shall be valued at their fair value if the exchange has commercial substance and the fair value of the assets exchanged or exchanged out can be reliably measured; if the exchange does not have commercial substance and the fair value of the assets exchanged or exchanged out cannot be reliably measured, they shall be valued at the book value of the assets exchanged out.

(4) The entry value of fixed assets that are in surplus shall be determined according to the following provisions:

If there is an active market for the same or similar fixed assets, the amount estimated based on the market price of the same or similar fixed assets, plus the relevant taxes payable, shall be the entry value;

If there is no active market for the same or similar fixed assets, the present value of the expected future cash flows of the profitable fixed assets shall be used as the entry value.

(5) For fixed assets that are donated and the donor provides relevant vouchers, the amount indicated on the voucher plus the relevant taxes payable shall be the recorded value. If the donor does not provide relevant credentials, the recorded value shall be determined in the following order:

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If there is an active market for the same or similar fixed assets, the amount estimated based on the market price of the same or similar fixed assets, plus the relevant taxes payable, shall be the entry value;

If there is no active market for fixed assets of the same type or similar type, the present value of the estimated future cash flows of the donated fixed assets shall be used as the entry value.

(6) For fixed assets obtained by the debtor in the form of non-cash assets to offset debts, or fixed assets exchanged for claims receivable, the book value of the claims receivable plus the relevant taxes payable shall be the book value.

(2). Depreciation method

√Applicable □Not applicable

Category Depreciation method Depreciation life (years) Residual value rate Annual depreciation rate a. Chemical assets 5%

Houses and buildings Straight-line method 20-30 5% 3.17%-4.75% Machinery and equipment Straight-line method 3-10 5% 9.5%

Including: Highly corrosive equipment Double declining balance method 10 5%

Transportation equipment straight line method 8 5% 11.875%

Office equipment and others Straight-line method 3-8 5% 11.875%-31.67% b. Glass and photovoltaic manufacturing assets

Houses and buildings Straight-line method 20-40 5% 2.38%-4.75% Machinery and equipment Straight-line method 10-15 5% 6.33%-9.50% Transportation equipment Straight-line method 8 5% 11.875%

Office equipment and others Straight-line method 5-8 5% 11.875%-19% c. Pesticide assets

Houses and buildings Straight line method 20 5% 4.75%

Machinery and equipment Straight-line method 5-15 5% 6.33%-19% Transportation equipment Straight-line method 8 5% 11.875%

Office equipment and others Straight-line method 3-5 5% 19%-31.67% d. Mining assets

Houses and buildings Straight-line method 20—40 5% 2.38%—4.75% Machinery and equipment Straight-line method 5—10 5% 9.5%—19%

Transportation equipment Straight-line method 4-8 5% 11.875%-23.75% Office equipment and others Straight-line method 3-5 5% 19%-31.67%

Note: For fixed assets held for sale, depreciation is stopped and the estimated net residual value is adjusted. Fixed assets held for sale must meet the following three conditions at the same time: first, the enterprise has made a resolution to dispose of the non-current assets; second, the enterprise has signed an irrevocable transfer agreement with the transferee; third, the transfer will be completed within one year.

When depreciation is made for a fixed asset that has made provision for impairment, the depreciation rate and amount are recalculated based on the book value of the fixed asset (i.e., the original price of the fixed asset less accumulated depreciation and the provision for impairment), as well as the remaining useful life and residual value rate. (3) Handling of subsequent expenditures on fixed assets

Expenses for repairs and maintenance of fixed assets are included in the current profit and loss when incurred, and related to inventory are included in inventory costs. Subsequent expenditures for major reconstruction, expansion, improvement and decoration of fixed assets shall be capitalized when the economic benefits that may flow into the enterprise from the fixed assets exceed the original estimate; subsequent expenditures for major reconstruction, expansion, improvement, etc. shall be depreciated according to the prescribed depreciation method during the remaining useful life of the fixed asset; decoration expenditure shall be depreciated according to the straight-line method within the expected benefit period.

(4) At the end of each year, review the service life, estimated net residual value and depreciation method of fixed assets. Changes in the useful life, estimated net residual value and depreciation method of fixed assets are treated as changes in accounting estimates.

22. Projects under construction

√Applicable □Not applicable

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Construction in progress is accounted for by project classification and is priced at actual cost. Borrowing costs incurred before each project reaches its intended usable state are included in the cost of the project. The fixed assets shall be carried forward in the month when the project is completed and accepted and delivered for use. For items that have reached the intended usable state but have not yet completed the final settlement, the cost transferred to the fixed assets will be determined based on the estimated value based on the project budget, cost or actual project cost from the date it reaches the intended usable state, and depreciation will be accrued; after the final settlement is processed, the original estimated value will be adjusted based on the actual cost, but the accrued depreciation amount will not be adjusted.

The specific standards and time points for the company's various types of projects under construction to be consolidated:

Category Consolidation Criteria and Time Point

1. The physical construction including installation work has been completed or substantially completed;

2. The amount of expenditure that continues to be incurred on the purchased houses and buildings is very small or

Almost never happens anymore;

Houses and buildings 3) The houses and buildings purchased and constructed have met the design or contract requirements, or are basically consistent with the design or contract requirements;

4. If the construction project reaches the intended usable state but has not yet completed the final settlement, the estimated value will be transferred to fixed assets based on the actual cost of the project from the date it reaches the intended usable state.

5. Relevant equipment and other supporting facilities have been installed;

6. The equipment can maintain normal and stable operation for a period of time after debugging;

Machinery and equipment

3. The production equipment can stably produce qualified products over a period of time;

4. The equipment has been accepted by asset managers and users.

On the balance sheet date, construction in progress is valued at the lower of book value and recoverable amount.

23. Borrowing costs

√Applicable □Not applicable

Borrowing costs refer to the interest and other related costs incurred by the company for borrowing money. Including borrowing interest, amortization of discounts or premiums, auxiliary expenses and exchange differences arising from foreign currency borrowings, etc.

Borrowing costs that are directly attributable to the purchase, construction or production of assets that meet the capitalization conditions are capitalized and included in the cost of the relevant assets; other borrowing costs are recognized as expenses based on the amount incurred when incurred and included in the current profit and loss. Assets that meet the conditions for capitalization refer to fixed assets, investment real estate, inventories and other assets that require a considerable period of acquisition, construction or production activities to reach the intended usable or salable state.

23.1 Recognition conditions for capitalization of borrowing costs

The capitalization period of borrowing costs begins when the following three conditions are met at the same time:

(1) Asset expenditure has occurred;

(2) Borrowing costs have been incurred;

(3) The necessary acquisition and construction activities to bring the asset to its intended usable state have begun.

23.2 Determination of capitalization amount

(1) If a special loan is borrowed for the purpose of purchasing, constructing or producing assets that meet the capitalization conditions, the amount of the interest expense actually incurred on the special borrowing in the current period, minus the interest income from depositing the unused borrowed funds in the bank or the investment income from temporary investment, shall be determined as the capitalized amount of the special borrowing interest expense, and shall be included in the cost of the relevant assets during the capitalization period. Ancillary expenses incurred for special borrowings, which are incurred before the relevant assets reach the intended usable or salable state, shall be capitalized according to the amount incurred when incurred. If they occur after the relevant assets reach the intended usable or salable state, they shall be recognized as expenses and included in the current profit and loss.

(2) If general borrowings are occupied for the purpose of purchasing, constructing or producing assets that meet the capitalization conditions, the enterprise shall calculate and determine the amount of interest that should be capitalized on the general borrowings based on the weighted average of the asset disbursements exceeding the part of the special borrowings multiplied by the capitalization rate of the general borrowings occupied. The capitalization rate shall be calculated and determined based on the weighted average interest rate of general borrowings.

(3) If there is a discount or premium on the loan, the amount of discount or premium that should be amortized in each accounting period shall be determined according to the actual interest rate method, and the interest amount of each period shall be adjusted.

23.3 Suspension of capitalization

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If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction or production process, and the interruption lasts for more than 3 months, the capitalization of borrowing costs shall be suspended and recognized as current expenses.

23.4 Cessation of capitalization

When the acquisition, construction or production of assets that meet the capitalization conditions reaches the intended usable or salable state, the capitalization of borrowing costs shall cease. Borrowing costs incurred in the future are recognized as expenses in the current period and included in the current profits and losses.

24. Biological assets

□Applicable √Not applicable

25. Oil and gas assets

□Applicable √Not applicable

26. Intangible assets

(1). Useful life and its determination basis, estimation, amortization method or review procedure

√Applicable □Not applicable

Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by the company. They are recognized when the following conditions are met at the same time: a. The economic benefits related to the intangible assets are likely to flow into the company; b. The cost of the intangible assets can be measured reliably.

The company's intangible assets are initially measured at cost. The actual cost of purchased intangible assets is based on the actual price paid and related expenditures; the actual cost of intangible assets invested by investors is determined based on the value stipulated in the investment contract or agreement, but if the value stipulated in the contract or agreement is unfair, the actual cost is determined based on the fair value; self-developed For intangible assets, the cost is the total expenditure incurred before reaching the intended use; for intangible assets owned by the acquiree acquired in a merger not under common control but not recognized in its financial statements, when the assets of the acquiree are initially recognized, they are recognized as intangible assets at fair value.

The subsequent measurement of the company's intangible assets is as follows: a. Intangible assets with limited service life are amortized using the straight-line method, and the service life and amortization method of the intangible assets are reviewed at the end of the year. If there are differences with the original estimates, corresponding adjustments are made; b. Intangible assets with uncertain service life are not amortized, but the service life is reviewed at the end of the year. When there is conclusive evidence that its service life is limited, its service life and amortization method are estimated and amortized according to the straight-line method.

The amortization method of intangible assets with limited useful life is as follows:

Category Service life (years) Recognition basis of service life Amortization method

Land use rights (Note) 35-50 Property rights registration period Straight-line method

Patented technology and proprietary technology (Note) 8-10 Expected economic benefit period Straight-line method

Brine mining rights 30 Property rights registration period Straight-line method

Phosphate mining rights (Note) 20-30 Property rights registration period Production volume method

Exploration rights (note) are amortized after being converted into mining rights.

Note: Land use rights will be amortized based on the remaining useful life agreed upon in the warrants from the time they are put into production and income will be generated; phosphate mining rights will be amortized based on the production method from the time they are put into production; exploration rights will not be amortized before mining, and will be amortized based on the production method after being transferred to mining rights; patented technologies and proprietary technologies will be amortized based on the expected beneficial life from the time they start generating income.

If the company cannot predict the period during which the asset will bring economic benefits to the company, or if the intangible assets have an uncertain useful life, they will be determined as intangible assets with an indefinite useful life and will not be amortized.

The basis for judging the uncertain service life: ① It comes from contractual rights or other legal rights, but there is no clear service life stipulated in the contract or law; ② Based on the situation in the same industry or the argumentation of relevant experts, it is still impossible to judge the period during which the intangible assets can bring economic benefits to the company. At the end of each year, the company reviews the useful lives of intangible assets with uncertain useful lives. It mainly adopts a bottom-up approach. The departments related to the use of intangible assets conduct basic reviews to evaluate whether there are changes in the basis for judging the uncertain useful lives.

The situation of intangible assets with indefinite service life is as follows:

Category Service life (years) Basis for judgment of uncertain service life Amortization method

Indonesian land use rights (Note) Uncertain Property rights registration period No amortization

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Note: PT HEBANG BIOTECHNOLOGY INDONESIA, a wholly-owned subsidiary established by the Company in Indonesia, obtained the project land and building rights (HGB) in 2025. According to local Indonesian law, the land and building rights (HGB) can be continuously extended and renewed under the premise of continuing operations. Its economic use has no clear period, so the land cost will not be amortized.

(2). Scope of aggregation of R&D expenditures and related accounting treatment methods

√Applicable □Not applicable

The company's R&D expenditures are expenditures directly related to the company's R&D activities, including employee salaries of R&D personnel, direct input materials, depreciation expenses, amortization expenses of intangible assets, entrusted external research and development expenses, other expenses, etc. Among them, the wages of R&D personnel are included in R&D expenses according to project working hours.

Expenditures in the research phase of internal research and development projects shall be included in the current profit and loss when incurred; expenditures in the development phase shall be capitalized by the company only if the following conditions are met at the same time: ① It is technically feasible to complete the intangible asset so that it can be used or sold; ② There is the intention to complete the intangible asset and use or sell it; ③ The way intangible assets generate economic benefits includes It can prove that there is a market for the products produced using the intangible assets or that the intangible assets themselves have a market, and if the intangible assets will be used internally, it can prove their usefulness; ④ There is sufficient technical, financial and other resource support to complete the development of the intangible assets, and the ability to use or sell the intangible assets; ⑤ Expenditures attributable to the development stage of the intangible assets can be measured reliably.

The company’s specific criteria for dividing expenditures in the research phase and development phase of internal research and development projects are: the planned investigation phase to obtain new technologies and knowledge, etc., is determined as the research phase, which has the characteristics of planning and exploratory nature; the phase where research results or other knowledge is applied to a plan or design before commercial production or use to produce new or substantially improved materials, devices, products, etc., is determined as the development phase, which is characterized by pertinence and a greater possibility of achieving results. For intangible assets independently researched and developed by the company, expenditures in the research phase shall be included in the current profit and loss when incurred; expenditures in the development phase shall be recognized as intangible assets if the following conditions are met at the same time:

1. It is technically feasible to complete the intangible asset so that it can be used or sold;

2. Have the intention to complete the intangible asset and use or sell it;

3. The way intangible assets generate economic benefits, including being able to prove that there is a market for the products produced using the intangible assets or that the intangible assets themselves have a market. If the intangible assets will be used internally, prove their usefulness;

4. Have sufficient technical, financial and other resource support to complete the development of the intangible assets, and have the ability to use or sell the intangible assets;

5. Expenditures attributable to the development stage of the intangible asset can be measured reliably.

If it is impossible to distinguish between expenditures in the research stage and expenditures in the development stage, all R&D expenditures incurred will be included in the current profit and loss.

27. Impairment of long-term assets

√Applicable □Not applicable

Asset impairment means that the recoverable amount of an asset is lower than its book value. The assets here specifically refer to assets other than inventories, investment real estate measured using the fair value model, deferred income tax assets, and financial assets.

(1) Determination of asset impairment

The company determines whether there are signs that assets may be impaired on the balance sheet date.

Goodwill and intangible assets with indefinite useful lives formed due to business combinations shall be tested for impairment every year regardless of whether there are signs of impairment.

The presence of the following signs indicates that the asset may be impaired:

1. The market price of the asset fell significantly during the current period, and the decline was significantly higher than the expected decline due to the passage of time or normal use.

2. The economic, technological or legal environment in which the company operates and the market in which its assets are located have undergone major changes in the current period or will occur in the near future, which will have an adverse impact on the company.

3. Market interest rates or other market investment returns have increased in the current period, which affects the discount rate used by enterprises to calculate the present value of expected future cash flows of assets, resulting in a significant reduction in the recoverable amount of assets.

4. There is evidence that the asset is obsolete or physically damaged.

5. The assets have been or will be idle, terminated, or planned to be disposed of in advance.

6. Evidence from the company's internal reports shows that the economic performance of the assets has been or will be lower than expected, such as the net cash flow created by the assets or the operating profit (or loss) realized is far lower (or higher) than the expected amount, etc.

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7. Other signs indicating that the asset may have been impaired.

If there are signs of impairment of an asset, the recoverable amount is determined based on the higher of the net amount of the asset's fair value minus disposal costs and the present value of the asset's expected future cash flows. As long as one of the two exceeds the book value of the asset, it means that the asset has not been impaired and there is no need to estimate the other amount.

(2) Recognition of asset impairment losses

If the recoverable amount of an asset is lower than its book value, the book value of the asset should be written down to the recoverable amount. The amount written down is recognized as asset impairment loss and included in the current profit and loss, and corresponding asset impairment provisions are made. Once an asset impairment loss is recognized, it cannot be reversed in subsequent accounting periods.

When conducting an impairment test on a relevant asset group or combination of asset groups that contains goodwill, if there are signs of impairment in the combination of asset groups related to goodwill, an impairment test should be conducted on the asset group or combination of asset groups that does not contain goodwill first, the recoverable amount should be calculated, and compared with the relevant book value, the corresponding impairment loss should be recognized. Then conduct an impairment test on the asset group or asset group combination containing goodwill, and compare the book value of these relevant asset groups or asset group combinations (including the book value portion of the allocated goodwill) with their recoverable amount. If the recoverable amount of the relevant asset group or asset group combination is lower than its book value, the impairment loss of goodwill should be recognized.

(3) Division of asset groups

If it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs shall be determined based on it. Based on the identification criteria of whether an asset group can independently generate cash inflows, the relevant headquarters assets and subordinate workshop assets are allocated to the corresponding asset groups according to the output value ratio of each asset group.

28. Long-term deferred expenses

√Applicable □Not applicable

Long-term deferred expenses refer to various expenses that have been incurred but should be borne by the current period and subsequent periods with an amortization period of more than one year. Long-term deferred expenses are recorded at the actual amount incurred and amortized over the beneficial period using the straight-line method. If a long-term deferred expense item cannot benefit future accounting periods, all the amortized value of the item that has not yet been amortized will be transferred to the current profit and loss.

29. Contract liabilities

√Applicable □Not applicable

The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The Company's obligations to transfer goods or provide services to customers for consideration received or receivable from customers are listed as contract liabilities. Contract assets and contract liabilities under the same contract are presented on a net basis.

30. Employee compensation

(1).Accounting treatment method of short-term compensation

√Applicable □Not applicable

During the accounting period when employees provide services to the company, the company recognizes the actual short-term compensation as a liability and includes it in the current profit and loss or related asset costs.

The company pays social insurance premiums and housing provident funds for its employees, as well as union funds and employee education funds withdrawn in accordance with regulations. During the accounting period when employees provide services to the company, the corresponding amount of employee remuneration is calculated and determined based on the prescribed accrual basis and accrual ratio.

If employee benefits are non-monetary benefits and can be measured reliably, they shall be measured at fair value.

(2).Accounting treatment of post-employment benefits

√Applicable □Not applicable

1. Set up a withdrawal plan

The company pays basic pension insurance and unemployment insurance for its employees in accordance with relevant regulations of the local government. During the accounting period when employees provide services to the company, the amount payable is calculated based on the payment base and proportion specified by the local government, is recognized as a liability, and is included in the current profit and loss or related asset costs.

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2. Set up a benefit plan

The company attributes the welfare obligations arising from the defined benefit plan to the period in which employees provide services based on the formula determined by the expected cumulative welfare unit method, and includes them in the current profit and loss or related asset costs.

The deficit or surplus formed by deducting the present value of the defined benefit plan obligations from the fair value of the defined benefit plan assets is recognized as the net liability or net assets of a defined benefit plan. If there is a surplus in the defined benefit plan, the company shall measure the net assets of the defined benefit plan at the lower of the surplus of the defined benefit plan and the asset upper limit.

All defined benefit plan obligations, including obligations expected to be paid within twelve months after the end of the annual reporting period in which employees provide services, are discounted based on the market rate of return on Treasury bonds or high-quality corporate bonds in active markets on the balance sheet date that match the term and currency of the defined benefit plan obligation.

The service costs incurred by the defined benefit plan and the net interest on the net liabilities or net assets of the defined benefit plan are included in the current profit and loss or related asset costs; the changes resulting from the remeasurement of the net liabilities or net assets of the defined benefit plan are included in other comprehensive income and will not be transferred back to profit or loss in subsequent accounting periods.

When the defined benefit plan is settled, the settlement gain or loss is recognized based on the difference between the present value of the defined benefit plan obligations determined on the settlement date and the settlement price.

(3).Accounting treatment of dismissal benefits

√Applicable □Not applicable

When the company cannot unilaterally withdraw the dismissal benefits provided by the termination of labor relationship plan or layoff proposal, or when it recognizes the costs or expenses related to the restructuring involving the payment of dismissal benefits (whichever is earlier), the employee compensation liabilities arising from the dismissal benefits are recognized and included in the current profit and loss. For dismissal benefits that are not expected to be fully paid within 12 months after the end of the annual reporting period, the company selects an appropriate discount rate and uses the discounted amount to measure the amount of dismissal benefits that should be included in the current profit and loss.

(4). Accounting treatment methods for other long-term employee benefits

√Applicable □Not applicable

Other long-term employee benefits provided by the company to employees, if they meet the conditions of the defined contribution plan, will be treated in accordance with the same principles as the defined contribution plan; if they meet the conditions of the defined benefit plan, the net liabilities or net assets of other long-term employee benefits will be recognized and measured in accordance with the relevant provisions of the defined benefit plan.

31. Estimated liabilities

√Applicable □Not applicable

If an obligation related to a contingency occurs and meets the following conditions at the same time, it shall be recognized as estimated liabilities. If the contract to be executed becomes a loss-making contract, the obligations arising from the loss-making contract shall also be recognized as estimated liabilities if it meets the following conditions:

(1) The obligation is a current obligation borne by the company;

(2) The performance of this obligation is likely to result in the outflow of economic benefits from the company;

(3) The amount of the obligation can be measured reliably.

Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfill the relevant current obligations. On the balance sheet date, if there is conclusive evidence that the book value does not reflect the current best estimate, the book value shall be adjusted based on the current best estimate.

32. Share-based payment

√Applicable □Not applicable

1. Types of share-based payment

The Company's share-based payment is divided into equity-settled share-based payment and cash-settled share-based payment.

2. Method for determining the fair value of equity instruments

For equity instruments such as options granted in an active market, the fair value shall be determined based on the quoted price in the active market. For equity instruments such as options granted for which there is no active market, an option pricing model is used to determine their fair value.

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The price model considers the following factors: (1) The exercise price of the option; (2) The validity period of the option; (3) The current price of the underlying stock; (4) The expected volatility of the stock price; (5) The expected dividend of the stock; (6) The risk-free interest rate during the validity period of the option.

When determining the fair value of equity instruments on the grant date, the impact of market conditions and non-vestigation conditions in the vesting conditions stipulated in the share-based payment agreement shall be considered. If there are non-exercisable conditions for share-based payment, as long as the employees or other parties meet all the non-market conditions (such as service period, etc.) among the exercisable conditions, the corresponding costs and expenses for the services will be confirmed.

3. Basis for determining the best estimate of exercisable equity instruments

On each balance sheet date during the waiting period, the best estimate is made based on the latest changes in the number of vested employees and other subsequent information, and the number of equity instruments expected to be vested is revised. On the vesting date, the final expected number of vested equity instruments is consistent with the actual number of vested equity instruments.

4.Accounting treatment method

Equity-settled share-based payments are measured at the fair value of the equity instruments granted to employees. If the rights become exercisable immediately after grant, the fair value of the equity instrument on the grant date will be included in the relevant costs or expenses, and the capital reserve will be increased accordingly. If the vesting is vested only after the services within the waiting period are completed or the specified performance conditions are met, on each balance sheet date during the waiting period, based on the best estimate of the number of vesting equity instruments and the fair value of the equity instruments on the grant date, the services obtained in the current period will be included in the relevant costs or expenses and capital reserves. No adjustments will be made to the recognized related costs or expenses and the total owner's equity after the vesting date.

Cash-settled share-based payments are measured based on the fair value of the liability calculated and determined based on shares or other equity instruments assumed by the company. If the rights become exercisable immediately after grant, the fair value of the liability assumed by the Company on the date of grant will be included in the relevant costs or expenses, and the liability will be increased accordingly. For cash-settled share-based payments that are exercisable only after the services within the waiting period are completed or the specified performance conditions are met, on each balance sheet date during the waiting period, based on the best estimate of the vesting situation and the fair value of the liability borne by the company, the services obtained in the current period are included in costs or expenses and the corresponding liabilities. On each balance sheet date and settlement date before the relevant liabilities are settled, the fair value of the liabilities is re-measured, and the changes are included in the current profits and losses.

If the granted equity instruments are canceled during the waiting period, the company will treat the cancellation of the granted equity instruments as accelerated exercise, and the amount that should be recognized during the remaining waiting period will be immediately included in the current profit and loss, and the capital reserve will be recognized at the same time. If employees or other parties can choose to meet the non-vesting conditions but fail to do so within the waiting period, the company will treat it as the cancellation of the equity instruments granted.

33. Preferred shares, perpetual bonds and other financial instruments

□Applicable √Not applicable

34. Income

(1). Disclose the accounting policies adopted for revenue recognition and measurement according to business type

√Applicable □Not applicable

The company fulfills its performance obligations in the contract, that is, when the customer obtains control of the relevant assets (goods or services), revenue is recognized. Whether the performance obligation is performed within a certain period of time or at a certain point in time depends on the terms of the contract and relevant legal provisions. If the company meets one of the following conditions, it will perform its performance obligations within a certain period of time:

1. When the company performs the contract, the customer obtains and consumes the economic benefits brought by the company's performance.

2. The customer can control the assets under construction during the company's performance of the contract.

3. The assets produced by the company during the performance of the contract have irreplaceable uses, and the company has the right to collect payment for the cumulative performance part that has been completed so far during the entire contract period.

If the performance obligation is performed within a certain period of time, the company recognizes revenue based on the performance progress. Otherwise, the Company recognizes revenue at a point when the customer obtains control of the relevant assets. The performance progress is measured by the expenditure or investment incurred by the Company to fulfill the performance obligations. The progress is determined based on the proportion of the cumulative incurred costs of each contract as of the balance sheet date to the estimated total costs.

When determining the contract transaction price, if there is variable consideration, the company determines the best estimate of the variable consideration based on the expected value or the most likely amount, and includes it in the transaction price at an amount that does not exceed the amount that is unlikely to significantly reverse the cumulative recognized revenue when the relevant uncertainty is eliminated. If there is a significant financing component in the contract, the Company will adjust the transaction price based on the financing component in the contract; if the interval between the transfer of control and the customer's payment does not exceed one year, the Company will not consider the financing component.

For sales with a sales return clause, when the customer obtains control of the relevant goods, the company recognizes revenue based on the amount of consideration that the customer is entitled to receive for transferring the goods to the customer, and recognizes the amount expected to be returned as a result of the sale as an estimated liability; at the same time, the book value of the goods expected to be returned at the time of transfer is deducted from the estimated costs of recovering the goods (including the value of the returned goods)

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The balance after impairment) is recognized as an asset, that is, the cost of returns receivable. According to the book value of the transferred goods at the time of transfer, the net carry-over cost of the above-mentioned asset costs is deducted. On each balance sheet date, the company re-estimates future sales returns and re-measures the above assets and liabilities.

If there are significant financing costs in the contract, the company determines the transaction price based on the amount payable in cash when the customer obtains control of the goods. If the nominal amount of the contract consideration is discounted into the current selling price of the goods, the difference between the determined transaction price and the consideration amount promised in the contract will be amortized using the effective interest rate method during the contract period. The company did not consider the significant financing component in the contract if the interval between the customer's obtaining control of the goods and the customer's payment was expected to be less than one year. The company has the right to independently determine the price of the goods traded, that is, the company can control the goods and other products before transferring them to customers. Therefore, the company is the main responsible person and recognizes revenue based on the total consideration received or receivable. Otherwise, the company acts as an agent and recognizes revenue based on the amount of commissions or fees that it is expected to be entitled to receive. This amount should be recognized based on the net amount of the total consideration received or receivable after deducting the price payable to other related parties, or based on the established commission amount or ratio, etc.

Specific method of revenue recognition

The company's main sales of industrial products are performance obligations performed at a certain point in time. For domestic sales of goods, the company usually ships them to the agreed delivery location or is picked up by the buyer as stipulated in the contract. When the goods arrive and are confirmed by the buyer or self-pickup is completed, the operating income is recognized; for export sales of goods, the operating income is recognized when the goods have been shipped and the ownership transfer document for collecting the payment is obtained.

The company's engineering construction business mainly provides photovoltaic power station general contracting business, which is a performance obligation to be performed within a certain period of time. At the end of each month, the company recognizes revenue based on the progress of contract performance. When the progress of contract performance cannot be reasonably determined, if the costs incurred by the company are expected to be compensated, revenue will be recognized based on the amount of costs incurred until the progress of contract performance can be reasonably determined.

(2). Similar businesses using different business models involve different revenue recognition methods and measurement methods.

□Applicable √Not applicable

35. Contract costs

√Applicable □Not applicable

Contract costs are divided into contract performance costs and contract acquisition costs.

The costs incurred by the company to perform the contract are recognized as contract performance costs as an asset when the following conditions are met: 1) The cost is directly related to a current or expected contract;

2. This cost increases the company’s resources for fulfilling performance obligations in the future;

3. The cost is expected to be recovered.

The incremental costs incurred by the Company to obtain the contract are expected to be recovered and are recognized as an asset as the contract acquisition cost.

Assets related to contract costs are amortized on the same basis as the revenue recognition of goods or services related to the assets; however, if the amortization period of the contract acquisition costs does not exceed one year, the company will include them in the current profits and losses when incurred.

If the book value of assets related to contract costs is higher than the difference between the following two items, the company will make impairment provisions for the excess and recognize it as asset impairment losses:

1. The remaining consideration expected to be obtained from the transfer of goods or services related to the asset;

2. Estimate the costs that will be incurred to transfer the relevant goods or services.

If the above-mentioned asset impairment provision is subsequently reversed, the book value of the asset after the reversal shall not exceed the book value of the asset on the date of reversal if no impairment provision was made.

36. Government subsidies

√Applicable □Not applicable

Government subsidies are monetary assets or non-monetary assets that the company obtains free of charge from the government, including financial subsidies, tax refunds, etc.

(1) Criteria for distinguishing asset-related government subsidies and income-related government subsidies

Government subsidies related to assets refer to government subsidies obtained by the company for the purchase, construction or other formation of long-term assets; government subsidies related to income refer to government subsidies obtained by the company in addition to government subsidies related to assets; if the government documents do not clearly stipulate the subsidy objects, the following method is used to divide the subsidies into government subsidies related to income and government subsidies related to assets.

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Relevant government subsidies: (1) If the government document clarifies the specific project for which the subsidy is targeted, it will be divided according to the relative proportion of the amount of expenditure that forms assets and the amount of expenditure that is included in the expenses in the budget of the specific project. The division ratio needs to be reviewed on each balance sheet date and changed if necessary; (2) If the purpose is only a general statement in the government document and no specific project is specified, it will be regarded as a government subsidy related to income.

(2) Amortization method of deferred income related to government subsidies and recognition method of amortization period

Government subsidies related to assets are recognized as deferred income. Starting from the month when the relevant assets reach the intended use state and start depreciation and amortization, they are included in the profit and loss in installments according to a reasonable and systematic method during their useful life (i.e., within the depreciation and amortization period). If the relevant assets are disposed of in advance, the remaining deferred income is included in the current profit and loss in one go when the assets are disposed of. However, government subsidies measured in nominal amounts are directly included in the current profits and losses.

Government subsidies related to income are handled in two situations: 1) If they are used to compensate the company for relevant expenses or losses in the future period, they are recognized as deferred income, and included in the current profit and loss during the period when the relevant expenses are recognized; 2) If they are used to compensate the company for related expenses or losses that have already occurred, they are directly included in the current profits and losses.

Government subsidies related to the daily activities of the enterprise shall be included in other income by the company based on the economic business essence; government subsidies unrelated to the daily activities of the enterprise shall be included in non-operating income by the company.

(3) Confirmation time of government subsidies

Government subsidies are recognized when the company can meet the conditions attached to it and receive it.

(4) Measurement of government subsidies

If the government subsidy is a monetary asset, it shall be measured according to the amount received or receivable; if the government subsidy is a non-monetary asset, it shall be measured at its fair value; if the fair value cannot be obtained reliably, it shall be measured at its nominal amount.

37. Deferred income tax assets/deferred income tax liabilities

√Applicable □Not applicable

The Company's income tax is calculated using the balance sheet debt method.

The company recognizes deferred income tax assets when the following conditions are met at the same time:

1. Temporary differences are likely to reverse in the foreseeable future;

2. The amount of taxable income that is likely to be obtained in the future to offset the deductible temporary differences shall be limited to the amount of taxable income that is likely to be obtained.

On the balance sheet date, current income tax liabilities (or assets) formed in the current period and previous periods are measured at the amount of income tax expected to be paid (or returned) calculated in accordance with the provisions of the tax law; deferred income tax assets and deferred income tax liabilities are measured at the applicable tax rate during the period when the asset is expected to be recovered or the liability is paid off, in accordance with the provisions of the tax law.

On the balance sheet date, the Company reviews the book value of deferred income tax assets and deferred income tax liabilities. Except for income taxes arising from business mergers and transactions or events directly recognized in owners' equity, the company's current income tax and deferred income tax are treated as income tax expenses or income.

When the following conditions are met at the same time, the company will present the deferred income tax assets and deferred income tax liabilities as the net amount after offsetting: 1) It has the legal right to settle the current income tax assets and current income tax liabilities on a net basis;

2. Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax collection and administration department on the same taxable entity or to different taxable entities. However, in each future period when important deferred income tax assets and deferred income tax liabilities are reversed, the taxable entity involved intends to settle the current income tax assets and current income tax liabilities with a net amount or to obtain assets and pay off debts at the same time.

38. Leasing

√Applicable □Not applicable

As a lessee, the judgment basis and accounting treatment method for simplified treatment of short-term leases and low-value asset leases

√Applicable □Not applicable

On the start date of the lease period, the company identifies leases with a lease period of no more than 12 months and that do not include a purchase option as short-term leases: leases with a value of less than 50,000.00 yuan when a single leased asset is a new asset are identified as low-value asset leases. If a company subleases or anticipates subletting a leased asset, the original lease will not be deemed a low-value asset lease.

For all short-term leases and low-value asset leases, the company includes the lease payments into the relevant asset cost or current profit and loss on a straight-line basis throughout the lease term.

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In addition to the above-mentioned short-term leases and low-value asset leases that adopt simplified treatment, the company recognizes right-of-use assets and lease liabilities for leases on the start date of the lease period.

1. Right-of-use assets

The right-of-use assets are initially measured at cost, which includes: ① the initial measurement amount of the lease liability; ② the lease payment amount paid on or before the start date of the lease period, and if there is a lease incentive, the amount related to the lease incentive that has been enjoyed is deducted; ③ the initial direct costs incurred by the lessee; ④ the costs that the lessee expects to incur to dismantle and remove the leased asset, restore the site where the leased asset is located, or restore the leased asset to the state agreed upon in the lease terms.

The company depreciates right-of-use assets on a straight-line basis. If it is reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease term, the company will accrue depreciation over the remaining useful life of the leased asset. If it is not reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease term, the company will accrue depreciation during the shorter of the lease term and the remaining useful life of the leased asset.

2. Lease liabilities

At the beginning of the lease period, the company recognizes the present value of the unpaid lease payments as lease liabilities. When calculating the present value of lease payments, the interest rate implicit in the lease is used as the discount rate. If the interest rate implicit in the lease cannot be determined, the company's incremental borrowing rate is used as the discount rate. The difference between the lease payment and its present value is regarded as an unrecognized financing expense, and interest expenses are recognized at the discount rate used to confirm the present value of the lease payment during each period of the lease term, and included in the current profit and loss. Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss when actually incurred.

After the start date of the lease period, when the actual fixed payment amount changes, the estimated amount payable of the guaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluation results or actual exercise of the purchase option, lease renewal option or termination option change, When a change occurs, the company remeasures the lease liability based on the present value of the changed lease payment, and adjusts the book value of the right-of-use asset accordingly. If the book value of the right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, the remaining amount will be included in the current profit and loss.

Lease classification standards and accounting treatment methods as a lessor

√Applicable □Not applicable

1. The company acts as lessor

On the lease commencement date, the Company classifies leases that substantially transfer almost all risks and rewards related to the ownership of the leased assets as finance leases, and other leases as operating leases.

①Operating lease

The company recognizes rental income based on the straight-line method in each period of the lease term. The initial direct costs incurred are capitalized and apportioned on the same basis as the rental income recognition, and included in the current profit and loss in installments. Variable lease payments obtained by the company related to operating leases that are not included in the lease receipts are included in the current profit and loss when they actually occur.

②Financial lease

On the start date of the lease period, the company recognizes financial lease receivables based on the net lease investment (the sum of the unguaranteed residual value and the present value of the lease payments not yet received on the start date of the lease discounted at the interest rate implicit in the lease), and terminates the recognition of financial lease assets. During each period of the lease term, the company calculates and recognizes interest income based on the interest rate implicit in the lease.

Variable lease payments obtained by the company that are not included in the measurement of net lease investment are included in the current profit and loss when actually incurred.

2. Sale and leaseback

①The company serves as the lessee

The company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale in accordance with the provisions of "Accounting Standards for Business Enterprises No. 14 - Revenue". If the asset transfer in a sale and leaseback transaction is a sale, the company measures the right-of-use assets formed by the sale and leaseback based on the portion of the original asset's book value related to the right of use obtained through the leaseback, and only recognizes relevant gains or losses for the rights transferred to the lessor. If the asset transfer in a sale and leaseback transaction does not constitute a sale, the company will continue to recognize the transferred assets, and at the same time recognize a financial liability equal to the transfer income, and perform accounting treatment on the financial liability in accordance with the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments".

②The company acts as the lessor

The company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale in accordance with the provisions of "Accounting Standards for Business Enterprises No. 14 - Revenue". If the asset transfer in a sale and leaseback transaction is a sale, the company will account for the asset purchase in accordance with other applicable accounting standards for enterprises, and account for the asset leasing in accordance with "Accounting Standards for Business Enterprises No. 21 - Lease". If the asset transfer in a sale and leaseback transaction does not constitute a sale, the company does not recognize the transferred asset, but recognizes a financial asset equal to the transfer income, and performs accounting treatment on the financial asset in accordance with the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments".

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39. Other important accounting policies and accounting estimates

√Applicable □Not applicable

39.1 Goodwill

The initial cost of goodwill formed due to a merger of enterprises not under common control is the difference between the merger cost and the fair value share of the acquiree's identifiable net assets obtained in the merger.

Goodwill will be transferred out when its related asset group or combination of asset groups is disposed of and included in the current profit and loss.

The company does not amortize goodwill, and goodwill is tested for impairment at least at the end of each year.

The company conducts a goodwill impairment test, and the book value of goodwill formed due to business mergers will be allocated to the relevant asset groups in a reasonable manner from the date of purchase; if it is difficult to allocate it to the relevant asset groups, it will be allocated to the relevant asset group combinations. When apportioning the book value of goodwill to relevant asset groups or asset group combinations, the allocation is based on the proportion of the fair value of each asset group or asset group combination to the total fair value of the relevant asset group or asset group combination. If the fair value is difficult to measure reliably, the fair value shall be apportioned according to the proportion of the book value of each asset group or asset group combination to the total book value of the relevant asset group or asset group combination.

When conducting an impairment test on a relevant asset group or combination of asset groups that contains goodwill, if there are signs of impairment in the asset group or combination of asset groups that are related to goodwill, first conduct an impairment test on the asset group or combination of asset groups that does not contain goodwill, calculate the recoverable amount, and compare it with the relevant book value to confirm the corresponding impairment loss. Then conduct an impairment test on the asset group or asset group combination containing goodwill, and compare the book value of these related asset groups or asset group combinations (including the book value portion of the allocated goodwill) with their recoverable amount. If the recoverable amount of the relevant asset group or asset group combination is lower than its book value, the impairment loss of goodwill will be recognized. Goodwill impairment losses are included in the current profit and loss when they occur and will not be reversed in subsequent accounting periods.

39.2 Production safety expenses

The company accrues safety expenses in accordance with the relevant provisions of the "Management Measures for the Extraction and Use of Enterprise Safety Production Expenses" issued by the Ministry of Finance and the Ministry of Emergency Management [2022] No. 136. The specific accrual ratio is as follows:

1. Dangerous goods production and storage enterprises shall use the actual operating income of the previous year as the basis for accrual, and adopt an excess regressive method to withdraw on an average monthly basis according to the following standards:

Serial number Basis for provision Proportion of provision 1 Operating income (the portion of RMB 10 million and below) 4.5%

2 Operating income (from RMB 10 million to RMB 100 million (inclusive)) 2.25%

3 Operating income (from RMB 100 million to RMB 1,000 million (inclusive)) 0.55%

4 Operating income (the portion above RMB 1,000,000,000) 0.2%

2. Non-coal mining enterprises extract monthly amounts based on the mined raw ore output, which is 3 yuan per ton for open-pit mines and 8 yuan per ton for underground mines.

The production safety expenses withdrawn are included in the cost of related products or current profits and losses, and are also recorded in the "special reserve" account. If the use of extracted safety production costs time and is an expense, it will be directly offset against the special reserve. If the extracted safety production expenses are used to form fixed assets, the expenditures incurred are collected through the "construction in progress" account, and are recognized as fixed assets when the safety project is completed and reaches the intended usable state; at the same time, the special reserve is offset according to the cost of forming the fixed assets, and the accumulated depreciation of the same amount is recognized. This fixed asset will no longer be depreciated in future periods.

40. Changes in important accounting policies and accounting estimates

Contents and reasons for changes in accounting policies Names of report items that are significantly affected Amount affected

The Ministry of Finance will issue on December 6, 2024

Issued "Interpretation of Accounting Standards for Business Enterprises No. 18"

No." (Financial Accounting [2024] No. 24, the following

(referred to as "Explanation No. 18"), our company

See the instructions below for details 0

It will be implemented from December 6, 2024

In "About single performance obligations that are not

Accounting Office of Assurance Class Quality Assurance

"reasonable" provisions.

Other notes:

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The Ministry of Finance issued the "Interpretation No. 18 of Accounting Standards for Business Enterprises" (Cai Kuai [2024] No. 24) (hereinafter referred to as "Interpretation No. 18") in December 2024, which stipulates that the "Accounting Treatment of Guarantee-type Quality Assurances that Do Not Belong to Single Performance Obligations" shall be effective from the date of issuance, and enterprises are allowed to implement it in advance from the year of issuance. The above changes have no impact on the company's financial statements.

41. The first implementation of new accounting standards or standard interpretations starting in 2025 will involve adjustments to the financial statements at the beginning of the year of first implementation.

□Applicable √Not applicable

42. Others

□Applicable √Not applicable

6. Taxes

1. Main tax types and tax rates

Main tax types and tax rates

√Applicable □Not applicable

Tax type Tax calculation basis Tax rate Sodium carbonate, brine, diglyphosate, glass

glass, photovoltaic modules, silicon wafers, diethylene

Nitrile, methionine, sodium methylmercaptide, finished product 13%

Oil Sales Revenue; Glyphosate, Chlorinated 9%

value added tax

Ammonium, ammonium sulfate, natural gas transmission, phosphorus 9%, 5% (collection rate) ore and other sales revenue, engineering safety 6%

decoration income; real estate rental income; solid

Waste disposal income, labor income

consumption tax

15%, 25%, 23%, 20%, 10% - corporate income tax taxable income

35%, 16.5%

Resource tax Taxable product sales revenue, water intake 8%, 3%, 0.11 yuan/cubic meter Urban maintenance and construction tax Exchange tax 7%, 5%

Education fee surcharge should be transferred to exchange tax 3%

Local education surcharge exchange tax 2%

Rental income from house rental, 12% of rental income from fixed house for self-use or self-owned property tax

The original value of assets is 1.2% of 70% of the original value of fixed assets. 10 yuan/㎡, 8 yuan/㎡, 5 yuan/㎡, land use tax Land area

3 yuan/㎡, 1 yuan/㎡ According to the "Environmental Protection Tax Items and Amounts of Environmental Protection Tax Monitoring Emissions

Table》Calculation

If there are taxpayers with different corporate income tax rates, a description of the disclosure

√Applicable □Not applicable

Name of taxpayer Income tax rate (%) The company, Hebang Salt Mine, Hebang Agricultural Science, Wujun Solar Energy, Yongjiang Industrial, Hebang

Phosphate Mine, Chongqing Wujun, Fuxing Technology, Wujun Photovoltaic Engineering, Wujun Electrical Construction 15

She, Liujiashan Phosphate Mine, Jianwei Shuncheng, Qianwei Hebang Mining, Jingyan Hebang Mining

Runsen Gas Station, Yongjiang Gas Station, Wujun Electrical Design 20

S.T.K. 23 in Israel, 10 to 35 overseas, and State Investment (Hong Kong) 16.5

Indonesia and Bang 22

Remaining subsidiaries 25

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2. Tax incentives

√Applicable □Not applicable

1. According to the Sichuan Provincial Economic and Information Technology Commission (Sichuan Economic Information Letter [2012] No. 1212) on October 30, 2012, "Reply on Confirming that the Main Business of 27 Enterprises including Eskom Migao (Sichuan) Fertilizer Co., Ltd. is a national encouraged industry project", On December 19, 2012, the State Taxation Bureau of Wutongqiao District, Leshan City, Sichuan Province (Qiaoguo Shuihan [2012] No. 110) "Approval on Sichuan Hebang Co., Ltd. and other three enterprises to enjoy the preferential corporate income tax policies for the development of the western region", the company and its subsidiaries Hebang Salt Mine, Hebang Phosphate Mine, and Yongjiang Industrial comply with the Ministry of Finance, the State Administration of Taxation, and the General Administration of Customs (Finance and Taxation [2011] No. 58) "About According to the relevant provisions of the Notice on Tax Policy Issues Related to the In-depth Implementation of the Western Development Strategy, the State Administration of Taxation (2012 No. 12) "Announcement on Corporate Income Tax Issues Related to the In-depth Implementation of the Western Development Strategy", and the Sichuan Provincial State Taxation Bureau (2012 No. 7) "Announcement on Earnestly Implementing the Preferential Corporate Income Tax Policies Related to the Western Development Strategy", corporate income tax is calculated and paid at a rate of 15%.

2. According to the "Reply on Confirming the Main Businesses of 14 Enterprises including Chengdu Huayi Auto Parts Co., Ltd. as National Encouraged Industry Projects" issued by the Sichuan Provincial Economic and Information Technology Commission (Sichuan Economic Letter [2013] No. 1214) on December 9, 2013, Hebang Nongke complies with the Ministry of Finance, the State Administration of Taxation, and the General Administration of Customs (Caishui [2011] No. 58) "On the In-depth Implementation of the West According to the relevant provisions of the "Notice on Tax Policy Issues Related to the Western Development Strategy", the State Administration of Taxation (2012 No. 12) "Announcement on Corporate Income Tax Issues Related to the In-depth Implementation of the Western Development Strategy", and the Sichuan Provincial State Taxation Bureau (2012 No. 7) "Announcement on Conscientiously Implementing the Preferential Corporate Income Tax Policies Related to the Western Development Strategy", corporate income tax is calculated and paid at a rate of 15%.

3. According to the "Reply on Confirming that the Main Business of 10 Enterprises including Zigong Xinjian Construction Engineering Consulting Co., Ltd. is a national encouraged industry project" issued by the Sichuan Provincial Economic and Information Technology Commission (Sichuan Economic Letter [2015] No. 41) on January 15, 2015, Sichuan Wujun Special Glass Products Co., Ltd. complies with the "About According to the relevant provisions of the Notice on Tax Policy Issues Related to the In-depth Implementation of the Western Development Strategy, the State Administration of Taxation (2012 No. 12) "Announcement on Corporate Income Tax Issues Related to the In-depth Implementation of the Western Development Strategy", and the Sichuan Provincial State Taxation Bureau (2012 No. 7) "Announcement on Earnestly Implementing the Preferential Corporate Income Tax Policies Related to the Western Development Strategy", corporate income tax is calculated and paid at a rate of 15%.

4. According to the "Announcement on the Continuation of the Corporate Income Tax Policy for the Development of the Western Region" by the Ministry of Finance, the State Administration of Taxation, and the National Development and Reform Commission (Ministry of Finance Announcement No. 23 of 2020), from January 1, 2021 to December 31, 2030, enterprises in encouraged industries located in the western region will be levied a corporate income tax at a reduced rate of 15%. The Company, Hebang Salt Mine, Hebang Phosphate Mine, Hebang Agricultural Science, Wujun Solar Energy, Yongjiang Industrial, Chongqing Wujun, Wujun Photovoltaic Engineering, Wujun Electrical Construction, Qianwei Shuncheng, Liujiashan Phosphate Mine, Qianwei Hebang Mining, Jingyan Hebang Mining are expected to calculate and pay corporate income tax at a tax rate of 15% in 2025.

5. According to the first provisions of the "Announcement on Further Implementing Preferential Income Tax Policies for Small and Micro Enterprises" (Finance and Taxation Announcement No. 13, 2022) of the Ministry of Finance and the State Administration of Taxation, and the first provision of the "Announcement on Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial Households" (Finance and Taxation Announcement No. 6, 2023) Article 3 of the "Announcement on Further Supporting the Development of Small and Micro Enterprises and Individual Business Owners" (Finance and Taxation Announcement No. 12, 2023) stipulates that for small and low-profit enterprises whose annual taxable income does not exceed 3 million yuan, a reduced rate of 25% will be included in the taxable income, and the corporate income tax policy will be paid at a rate of 20%, which will continue to be implemented until December 31, 2027.

6. According to Article 2 of Annex 3 of the "Notice on Comprehensively Launching the Pilot Program of Replacing Business Tax with Value-Added Tax" (Cai Shui [2016] No. 36) of the Ministry of Finance and the State Administration of Taxation, "Provisions on Transitional Policies for the Pilot Program of Replacing Business Tax with Value-Added Tax", general taxpayers who provide pipeline transportation services shall implement a VAT refund policy for the portion of their actual VAT tax burden exceeding 3%.

7. Others

√Applicable □Not applicable

1. Since the "Environmental Protection Tax Law of the People's Republic of China" came into effect on January 1, 2018, environmental protection tax will be levied in accordance with the law. The "Regulations on the Collection and Use of Pollution Fees", which is the basis for the collection of sewage fees, will be abolished at the same time. The Company has calculated and paid environmental protection tax in accordance with the law since January 1, 2018, and will no longer pay pollution discharge fees.

2. The company has installed an online pollution source monitoring system - Key Pollution Automatic Monitoring and Basic Database System V3.2. The competent tax authorities calculate the pollutant emissions (kilograms) based on the system-monitored exhaust gas emissions (10,000 standard cubic meters) and the measured concentration value (mg/standard cubic meters), and then multiply this by the corresponding pollutant equivalent coefficient to calculate the tax base. The unit tax rate for air pollutants is 3.9 yuan/equivalent, and the unit tax rate for water pollutants is 2.8 yuan/equivalent.

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3. Environmental protection tax reduction: If the concentration of taxable air pollutants or water pollutants discharged by a taxpayer is lower than 30% of the national and local pollutant discharge standards, the environmental protection tax shall be levied at a reduced rate of 75%. If the concentration of taxable air pollutants or water pollutants discharged by taxpayers is lower than 50% of the national and local pollutant discharge standards, the environmental protection tax shall be levied at a reduced rate of 50%.

7. Notes on Consolidated Financial Statement Items

1. Monetary funds

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Cash on hand 3,163,137.79 2,479,621.54 Bank deposits 6,680,993,375.11 6,818,750,884.45 Other monetary funds 14,818,539.58 178,192,366.20 Deposits in finance companies

Total 6,698,975,052.48 6,999,422,872.19

Including: Total amount deposited abroad 400,606,487.97 534,742,772.40

Other notes:

Note 1: Other monetary funds include 40,303.11 yuan of funds deposited in the capital account of the securities company, as well as 14,778,236.47 yuan of letter of credit deposit, quality guarantee letter deposit, mine land reclamation deposit, and mine geological environment management and restoration fund deposits of 14,778,236.47 yuan. Among them, the use of restricted monetary funds is 14,778,236.47 yuan.

Note 2: The total amount of funds deposited overseas represents the monetary funds of overseas subsidiaries STK, PPI, PPR, Hebang Investment (Hong Kong), Indonesia Hebang, and there are no monetary funds with restricted use.

2. Trading financial assets

□Applicable √Not applicable

3. Derivative financial assets

□Applicable √Not applicable

4. Notes receivable

(1). Classified presentation of notes receivable

□Applicable √Not applicable

(2). The company’s pledged notes receivable at the end of the period

□Applicable √Not applicable

(3). Notes receivable that have been endorsed or discounted by the company at the end of the period and have not yet matured on the balance sheet date

□Applicable √Not applicable

(4). Classified disclosure according to bad debt accrual method

□Applicable √Not applicable

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Provision for bad debts is made individually:

□Applicable √Not applicable

Provision for bad debts by group:

□Applicable √Not applicable

Provision for bad debts based on the general expected credit loss model

□Applicable √Not applicable

Basis for division of each stage and provision ratio for bad debts

None

Explanation of significant changes in the book balance of notes receivable that have experienced changes in loss provisions in the current period: □ Applicable √ Not applicable

(5). Bad debt provisions

□Applicable √Not applicable

Among them, the amount of bad debt provision recovery or reversal in the current period is important: □ Applicable √ Not applicable

Other notes:

None

(6). Notes receivable actually written off in the current period

□Applicable √Not applicable

Among them, the important write-off of bills receivable:

□Applicable √Not applicable

Instructions for writing off notes receivable:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

5. Accounts receivable

(1). Disclosure based on aging

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Aging Book balance at the end of the period Book balance at the beginning of the period Within 1 year (including 1 year) 611,108,521.23 832,713,965.17 Subtotal within 1 year 611,108,521.23 832,713,965.17 1 to 2 years 47,719,651.72 23,524,063.59 2 to 3 years 21,019,610.70 8,784,315.90

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More than 3 years

3 to 4 years 8,014,315.90 90,688.62 4 to 5 years 86,541.78 921,682.27 More than 5 years 35,242,896.25 35,116,536.91

Total 723,191,537.58 901,151,252.46

(2). Classified disclosure according to bad debt accrual method

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Provision Book Provision Book ratio Proportion

Amount Amount Proportion Value Amount Amount Proportion Value (%) (%)

(%) (%)

59,3

59,39 46,28 46,28

Provision based on individual items 90,3 100.0 100.0

0,397 8.21 2,550 5.14 2,550

Provision for bad debts 97.8 0 0

.84 .16 .16

Among them:

The individual amount weighs 39,2

39,27 29,01 29,01

Total combined individually 77,8 100.0 100.0

7,803 5.43 4,155 3.22 4,155

Provision for bad debts 03.6 0 0

.62 .42 .42

Accounts receivable 2

The individual amount is not

20,1

Significant but separate 20,11 17,26 17,26

12,5 100.0 100.0

Provision for bad debts 2,594 2.78 8,394 1.92 8,394

94.2 0 0

Provision of accounts receivable .22 .74 .74

money

39,5 624, 809,

663,8 854,8 45,10

Provision on a combined basis 91.7 33,8 267, 763,

01,13 5.96 68,70 94.86 5,537 5.28

Provision for bad debts 9 86.2 253. 164. 9.74 2.30 .37

4 50 93 of which:

39,5 624, 809, 663,8 854,8 45,10

91.7 33,8 267, 763, risk portfolio 01,13 5.96 68,70 94.86 5,537 5.28

9 86.2 253. 164. 9.74 2.30 .37

4 50 93

98,9 624, 809, 723,1 901,1 91,38

24,2 267, 763, total 91,53 / / 51,25 / 8,087 /

84.0 253. 164. 7.58 2.46 .53

8 50 93

Provision for bad debts is made individually:

√Applicable □Not applicable

Unit: Yuan Currency: RMB Name Ending balance

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Book balance Bad debt provision Proportion of provision (%) Reason for provision

The customer has ceased business and has not resumed operations. Sichuan Province Nico Guorun New

12,231,198.25 12,231,198.25 100.00 It is expected that Difficult Materials Co., Ltd. will show signs of resumption of operations.

To get money back.

The customer is in operating difficulties and has already Dingyu Glass (Yangzhou)

10,462,105.21 10,462,105.21 100.00 Being included in the list of dishonest persons, Co., Ltd.

It is expected that it will be difficult to get the money back. Nufarm Turkey

Client funds of overseas subsidiaries Kimyevi Maddeler 8,740,066.79 8,740,066.79 100.00

It is expected to be difficult to recover

İthalat ve Ticare

The customer is in operating difficulties and has been transferred to Sichuan Youxing Trading Co., Ltd.

7,844,433.37 7,844,433.37 100.00 Being included in the list of dishonest persons, the company

It is expected that it will be difficult to get the money back. The amount of other individual items is not significant

Large but separately accrued bad debts 20,112,594.22 20,112,594.22 100.00 Accounts receivable for which funds are expected to be difficult to collect

Total 59,390,397.84 59,390,397.84 100.00 /

Instructions on accruing bad debt provisions individually:

□Applicable √Not applicable

Provision for bad debts by group:

√Applicable □Not applicable

Portfolio accrual items: risk portfolio

Unit: Yuan Currency: RMB Closing balance

Name

Book balance Bad debt provision Proportion of provision (%) Within 1 year 610,243,321.01 30,512,166.07 5.00 1-2 years 38,979,584.93 3,897,958.47 10.00 2-3 years 7,224,855.08 1,444,971.02 20.00 3-4 years 7,346,374.33 3,673,187.17 50.00 4-5 years 7,004.39 5,603.51 80.00 More than 5 years

Total 663,801,139.74 39,533,886.24 5.96 Instructions on the provision of bad debt provisions by group:

□Applicable √Not applicable

Provision for bad debts based on the general expected credit loss model

□Applicable √Not applicable

Basis for division of each stage and provision ratio for bad debts

None

Explanation of significant changes in the book balance of accounts receivable that have experienced changes in loss provisions during the current period:

□Applicable √Not applicable

(3). Bad debt provision situation

√Applicable □Not applicable

Unit: Yuan Currency: RMB

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Amount of changes in the current period

turn

Its sales

Category Opening balance Others Ending balance accrual Recovery or reversal or

metamorphosis

move

pin

Bad individual provision

46,282,550.16 13,996,579.46 888,731.78 59,390,397.84 Account preparation

Provision based on combination

45,105,537.37 5,571,651.13 39,533,886.24 Bad debt provision

Total 91,388,087.53 13,996,579.46 6,460,382.91 98,924,284.08

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

□Applicable √Not applicable

Other notes:

None

(4). Accounts receivable actually written off in the current period

□Applicable √Not applicable

Among them, the important write-off of accounts receivable

□Applicable √Not applicable

Instructions for writing off accounts receivable:

□Applicable √Not applicable

(5). Accounts receivable and contract assets of the top five closing balances collected by debtors

√Applicable □Not applicable

Unit: Yuan Currency: RMB as a proportion of the closing balance of accounts receivable, contract capital and contract assets Accounts receivable Accounts receivable and contracts Bad debt provision Ending unit name End of production period Total closing balance Assets ending balance Balance balance Count

(%) Good harvest in Jiangsu

Wayne Agricultural Chemical Co., Ltd. 158,072,023.68 158,072,023.68 20.78 7,903,601.18 Co., Ltd.

Hubei Yijunyao

Neng New Materials Co., Ltd. 70,746,000.00 70,746,000.00 9.30 4,537,300.00 Company

Tongwei Solar

(Sichuan) Co., Ltd. 39,129,048.07 39,129,048.07 5.14 1,956,452.40

Nantong Jiangshannong

Pharmaceutical and Chemical Industry Co., Ltd. 34,874,616.00 34,874,616.00 4.58 1,743,730.80

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Twins (set

Group) shares 27,945,166.00 27,945,166.00 3.67 1,397,258.30 Co., Ltd.

Total 330,766,853.75 330,766,853.75 43.47 17,538,342.68

Other notes:

None

Other notes:

□Applicable √Not applicable

6. Contract assets

(1).Contract assets

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Beginning balance items

Book balance Bad debt provision Book value Book balance Bad debt provision Book value Photovoltaic power station EPC 37,450,15 2,035,565 35,414,59 22,979,54 1,156,174 21,823,36 projects 6.06 .92 0.14 0.78 .18 6.60 37,450,15 2,035,565 35,414,59 22,979,54 1,156,174 21,823,36Total

6.06 .92 0.14 0.78 .18 6.60

(2). The amount and reasons for significant changes in book value during the reporting period

□Applicable √Not applicable

(3). Classified disclosure according to bad debt accrual method

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance Book balance Bad debt provision Book balance Bad debt provision category Provision Book Provision Book ratio Proportion

Amount Amount Proportion Value Amount Amount Proportion Value (%) (%)

(%) (%) Provision based on individual items

Provision for bad debts

Among them:

Single item amount

Large merger single item calculation

Provision for bad debts

contract assets

The individual amount is not

significant but separate

Provision for bad debts is accurate

prepared contract capital

produce

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35,4 21,8

37,45 2,03 22,97 1,156

Provision on a combined basis 100. 14,5 100.0 23,3

0,156 5,56 5.44 9,540 ,174. 5.03

Provision for bad debts 00 90.1 0 66.6 .06 5.92 .78 18

4 0 of which:

35,4 21,8 37,45 2,03 22,97 1,156

100. 14,5 100.0 23,3 Aging combination 0,156 5,56 5.44 9,540 ,174. 5.03

00 90.1 0 66.6 .06 5.92 .78 18

4 0

35,4 21,8 37,45 2,03 22,97 1,156

100. 14,5 100.0 23,3Total 0,156 5,56 5.44 9,540 ,174. 5.03

00 90.1 0 66.6 .06 5.92 .78 18

4 0

Provision for bad debts is made individually:

□Applicable √Not applicable

Instructions on accruing bad debt provisions individually:

□Applicable √Not applicable

Provision for bad debts by group:

√Applicable □Not applicable

Portfolio accrual items: aging portfolio

Unit: Yuan Currency: RMB Closing balance

Name

Book balance Bad debt provision Proportion (%) Within 1 year 34,188,993.64 1,709,449.68 5.00 1-2 years 3,261,162.42 326,116.24 10.00

Total 37,450,156.06 2,035,565.92 5.44 Instructions on the provision of bad debt provisions by group

□Applicable √Not applicable

Provision for bad debts based on the general expected credit loss model

□Applicable √Not applicable

Basis for division of each stage and provision ratio for bad debts

None

Explanation of significant changes in the book balance of contract assets that have experienced changes in loss provisions during the current period:

□Applicable √Not applicable

(4). Bad debt provisions for contract assets in the current period

√Applicable □Not applicable

Unit: Yuan Currency: RMB Change amount in the current period

Item Opening balance Current period Current period Its ending balance Reason for provision for the current period

repossess him

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

or transfer/nuclear change

Return to sales

Accounting photovoltaic power station

1,156,174.18 879,391.74 2,035,565.92 Planning and planning EPC project

mention

Total 1,156,174.18 879,391.74 2,035,565.92 /

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

□Applicable √Not applicable

Other notes:

None

(5).Contract assets actually written off in this period

□Applicable √Not applicable

Among them, the important write-off of contract assets

□Applicable √Not applicable

Instructions for write-off of contract assets:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

7. Accounts receivable financing

(1). Classified presentation of financing receivables

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Bank acceptance bill 350,670,396.62 1,211,259,933.57

Total 350,670,396.62 1,211,259,933.57 Note: Since most of the company's notes receivable are used to endorse payment for goods, they are listed in "Receivables Financing" as "financial assets measured at fair value and whose changes are included in other comprehensive income". In view that the term of the company's notes receivable does not exceed one year, the time value of funds factor has no significant impact on the fair value; and in actual business, both parties to the note endorsement recognized that the face value of the note is equal to offset the current accounts, and the impact of changes in fair value on its end-of-period measurement is significantly insignificant. Therefore, the company uses the face value of the note as the fair value of the receivable financing project.

(2). Financing of receivables pledged by the company at the end of the period

□Applicable √Not applicable

(3). Financing of receivables that have been endorsed or discounted by the company at the end of the period and have not yet matured on the balance sheet date

√Applicable □Not applicable

Unit: Yuan Currency: RMB

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Item Amount derecognized at the end of the period Amount not derecognized at the end of the period Bank acceptance bill 611,399,562.74

Total 611,399,562.74

Note: Due to the bank acceptance bill that has been endorsed or discounted at the end of the period, the possibility of the company being recourse is very small, so the recognition is terminated.

(4). Classified disclosure according to bad debt accrual method

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Provision Book Provision Book ratio Proportion

Amount Amount Proportion Value Amount Amount Proportion Value (%) (%)

(%) (%)

Provision based on individual items

Provision for bad debts

Among them:

350, 1,211 1,21

350,6

Provision based on combination 100. 670, ,259, 100.0 1,25

70,39

Provision for bad debts 00 396.933.5 0 9,93 6.62

62 7 3.57 of which: 350, 1,211 1,21

350,6

Bank acceptance 100. 670, ,259, 100.0 1,25

70,39

Tickets 00 396.933.5 0 9,93 6.62

62 7 3.57 350, 1,211 1,21 350,6

100. 670, ,259, 100.0 1,25Total 70,39

00 396. 933.5 0 9,93 6.62

62 7 3.57

Provision for bad debts is made individually:

□Applicable √Not applicable

Instructions on accruing bad debt provisions individually:

□Applicable √Not applicable

Provision for bad debts by group:

□Applicable √Not applicable

Provision for bad debts based on the general expected credit loss model

□Applicable √Not applicable

Basis for division of each stage and provision ratio for bad debts

None

Explanation of significant changes in the book balance of accounts receivable financing that have experienced changes in loss provisions in the current period:

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

□Applicable √Not applicable

(5). Bad debt provisions

□Applicable √Not applicable

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

□Applicable √Not applicable

Other notes:

None

(6). Financing of receivables actually written off in the current period

□Applicable √Not applicable

Important financing write-offs of receivables

□Applicable √Not applicable

Write-off instructions:

□Applicable √Not applicable

(7). Increases and decreases in receivables financing and changes in fair value during the current period:

□Applicable √Not applicable

(8).Other instructions

□Applicable √Not applicable

8. Advance payments

(1). Prepayments are listed based on aging

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance Aging

Amount Proportion (%) Amount Proportion (%) Within 1 year 181,944,137.89 96.94 190,611,900.82 92.79 1 to 2 years 2,313,563.51 1.23 13,543,625.36 6.59 2 to 3 years 2,443,484.33 1.30 318,161.82 0.15 More than 3 years 980,529.39 0.52 958,506.96 0.47

Total 187,681,715.12 100.00 205,432,194.96 100.00 Explanation of reasons why prepayments with an aging of more than 1 year and important amounts were not settled in time:

None

(2). Prepayments of the top five closing balances by prepayment objects

√Applicable □Not applicable

Unit: Yuan Currency: RMB accounted for the total closing balance of prepayments Unit name Closing balance

Proportion (%)

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

China Railway Chengdu Bureau Group Co., Ltd.

64,675,306.40 34.46 Division Chengdu Railway Logistics Center

China National Petroleum Corporation

Natural Gas Sales Sichuan and Chongqing Branch 28,000,347.25 14.92 Capital Sales Department

Leibo Yuntu Trading Co., Ltd. 10,772,697.34 5.74 Chongqing Jiangjin District Kunlun Gas Co., Ltd.

9,046,869.47 4.82 Company

Sichuan Huayou Group Co., Ltd. 7,577,169.49 4.04

Total 120,072,389.95 63.98

Other notes:

None

Other notes:

□Applicable √Not applicable

9. Other receivables

Item list

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Closing balance Opening balance Interest receivable

Dividends receivable

Other receivables 24,074,447.21 30,071,895.93 Total 24,074,447.21 30,071,895.93

Other notes:

□Applicable √Not applicable

interest receivable

(1).Classification of interest receivable

□Applicable √Not applicable

(2).Important overdue interest

□Applicable √Not applicable

(3). Classified disclosure according to bad debt accrual method

□Applicable √Not applicable

Provision for bad debts is made individually:

□Applicable √Not applicable

Instructions on accruing bad debt provisions individually:

□Applicable √Not applicable

137/238

The 2025 annual report of Sichuan Hebang Biotechnology Co., Ltd. provides bad debt provisions by group:

□Applicable √Not applicable

(4). Provision for bad debts based on the general expected credit loss model □Applicable √Not applicable

The basis for dividing each stage and the proportion of provision for bad debts are not available

Explanation of significant changes in the book balance of interest receivable due to changes in loss provisions in the current period: □ Applicable √ Not applicable

(5). Bad debt provisions

□Applicable √Not applicable

Among them, the amount of bad debt provision recovery or reversal in the current period is important: □ Applicable √ Not applicable

Other notes:

None

(6). Interest receivable actually written off in the current period □ Applicable √ Not applicable

Among them, the important write-off of interest receivable □ Applicable √ Not applicable

Write-off instructions:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Dividends receivable

(1). Dividends receivable

□Applicable √Not applicable

(2). Important dividends receivable aged more than 1 year □ Applicable √ Not applicable

(3). Classified disclosure according to bad debt accrual method □Applicable √Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Provision for bad debts is made individually:

□Applicable √Not applicable

Instructions on accruing bad debt provisions individually:

□Applicable √Not applicable

Provision for bad debts by group:

□Applicable √Not applicable

(4). Provision for bad debts based on the general expected credit loss model □Applicable √Not applicable

Basis for division of each stage and proportion of bad debt provision: None

Explanation of significant changes in the book balance of dividends receivable due to changes in loss provisions in the current period: □ Applicable √ Not applicable

(5). Bad debt provisions

□Applicable √Not applicable

Among them, the amount of bad debt provision recovery or reversal in the current period is important: □ Applicable √ Not applicable

Other notes:

None

(6). Dividends receivable actually written off in the current period

□Applicable √Not applicable

Among them, the important write-off of dividends receivable

□Applicable √Not applicable

Write-off instructions:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Other receivables

(1). Disclosure based on aging

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Aging Book balance at the end of the period Book balance at the beginning of the period Within 1 year (including 1 year) 5,483,428.47 4,829,161.94 Subtotal within 1 year 5,483,428.47 4,829,161.94

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

1 to 2 years 2,533,794.00 18,833,733.16 2 to 3 years 14,323,279.09 9,734,359.42 More than 3 years

3 to 4 years 9,672,009.42 1,492,689.39 4 to 5 years 1,450,737.93

More than 5 years 53,763.34 53,763.34

Total 33,517,012.25 34,943,707.25

(2). Classification by nature of payment

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Nature of payment Book balance at the end of the period Book balance at the beginning of the period

Reserve fund 192,019.42 160,000.00 Deposit and security deposit 21,667,105.47 23,274,822.57 Advance expenses 11,315,651.11 11,226,134.54 Others 342,236.25 282,750.14

Total 33,517,012.25 34,943,707.25

(3). Bad debt provision accrual

√Applicable □Not applicable

Unit: Yuan Currency: RMB Phase 1 Phase 2 Phase 3

Lifetime forecasts Lifetime forecasts

Bad debt provision Estimated total period credit losses in the next 12 months (unexpected credit losses (already

period credit loss

Credit impairment occurs) Credit impairment occurs)

Balance on January 1, 2025 241,458.08 4,630,353.24 4,871,811.32 Balance on January 1, 2025

This issue

--Transfer to the second stage

--Transfer to the third stage

--Return to the second stage

--Return to the first stage

Provision in this period 32,713.34 4,538,040.38 4,570,753.72 Transferred in this period

Sales in this period

Write-off in this period

Other changes

Balance on December 31, 2025 274,171.42 9,168,393.62 9,442,565.04

Basis for division of each stage and provision ratio for bad debts

None

Explanation of significant changes in the book balance of other receivables that have experienced changes in loss provisions during the current period:

□Applicable √Not applicable

The amount of bad debt provision for the current period and the basis for assessing whether the credit risk of financial instruments has increased significantly:

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

□Applicable √Not applicable

(4). Bad debt provisions

√Applicable □Not applicable

Unit: Yuan Currency: RMB Recovery of changes in the current period Type of write-off Opening balance Other Ending balance accrual Or transfer Or review changes

The amount of the single item of write-back is not significant

Large but accrued separately

Provision for bad debts

Provision for bad debts based on combination 4,871,811.32 4,570,753.72 9,442,565.04 Account provision

Total 4,871,811.32 4,570,753.72 9,442,565.04

Among them, the amount of bad debt provision reversed or recovered in the current period is important:

□Applicable √Not applicable

Other notes:

Classification of other receivables according to bad debt provision accrual method

Category Closing Balance Opening Balance Category Book Balance Bad Debt Provision Book Price Book Balance Bad Debt Provision Book Price Amount Ratio Amount Ratio Amount Ratio Amount Ratio

Example% Example% Example% Example% Single

item

plan

mention

bad

account

Accurate

Prepare

press

group

combine

plan

33,517, 100 9,442,5 28. 24,074, 34,943, 100 4,871,8 13. 30,071,

012.25 .00 65.04 17 447.21 707.25 .00 11.32 94 895.93 Bad

account

Accurate

Prepare

its

in

:

33,517, 100 9,442,5 28. 24,074, 34,943, 100 4,871,8 13. 30,071,wind

012.25 .00 65.04 17 447.21 707.25 .00 11.32 94 895.93 Risk

group

combine

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Total 33,517, 100 9,442,5 28. 24,074, 34,943, 100 4,871,8 13. 30,071, total 012.25 .00 65.04 17 447.21 707.25 .00 11.32 94 895.93

Other receivables for which bad debt provisions are made on a group basis:

Risk mix:

Ending balance

Aging

Other receivables Bad debt provision Provision ratio %

Within 1 year 5,483,428.47 274,171.42 5.00 1—2 years 2,533,794.00 253,379.41 10.00 2—3 years 14,323,279.09 2,864,655.82 20.00 3—4 years 9,672,009.42 4,836,004.71 50.00 4-5 years 1,450,737.93 1,160,590.34 80.00 More than 5 years 53,763.34 53,763.34 100.00Total 33,517,012.25 9,442,565.04 28.17

(5). Other receivables actually written off in the current period

□Applicable √Not applicable

Important write-offs of other receivables:

□Applicable √Not applicable

Instructions for writing off other receivables:

□Applicable √Not applicable

(6). Other receivables with top five closing balances based on debtors

√Applicable □Not applicable

Unit: Yuan Currency: RMB in other receivables

Closing balance of the payment Bad debt provision unit name Closing balance Nature of the payment Aging

Ratio of total ending balance

Example(%)

Jiangjin District, Chongqing City Land Transfer Guarantee

1-2 years,

Baisha Industrial Park issued 15,314,667.82 45.69 Gold, paid in advance 2,948,593.56

2-3 years

Exhibition Center Project Fund

Chongqing Baisha Construction Substitute Site Leveling Project

9,608,903.42 28.67 3-4 years 4,804,451.71 Co., Ltd.

Eagle

Property Overseas subsidiary for rent

1,116,211.74 3.33 4-5 years 892,969.39 Management room deposit

(CP) Limited

Gain Regent

Overseas subsidiary rental

Development 1,029,670.80 3.07 Within 1 year 51,483.54

room deposit

Limited

Overseas subsidiary rental

PPBB Pty Ltd 937,840.00 2.80 1-2 years 93,784.00 room deposit

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Total 28,007,293.78 83.56 / / 8,791,282.20

(7). Presented in other receivables due to centralized management of funds

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

10. Inventory

(1).Inventory classification

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

Inventories are accurate for price decreases Inventories are accurate for decreases in price

Project preparation/contract performance preparation/contract performance

Book Balance Book Value Book Balance Book Value Impairment of Approximate Cost Impairment of Approximate Cost

prepare prepare

380,058,4 28,009,446 352,049,0 455,015,2 8,776,159. 446,239, raw materials

91.96 .66 45.30 96.13 29 136.84 1,659,203 1,244,161. 415,042.3 1,659,203 1,344,484. 314,719. Self-made semi-finished products

.67 34 3 .67 54 13 3,967,154 437,270,27 3,529,884 4,161,481 123,759,48 4,037,72Inventory items

,868.43 9.45 ,588.98 ,657.32 9.67 2,167.65 26,717,55 26,291,34 61,826,07 1,734,787. 60,091,2 Goods shipped 426,211.51

5.53 4.02 2.06 14 84.92 713,563.9 713,563.9 567,454.1 567,454. Products in progress

5 5 5 15 4,376,303 466,950,09 3,909,353 4,680,549 135,614,92 4,544,93Total

,683.54 8.96 ,584.58 ,683.33 0.64 4,762.69

(2). Data resources confirmed as inventory

□Applicable √Not applicable

(3). Provision for inventory depreciation and provision for impairment of contract performance costs

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Increase amount in this period Decrease amount in this period

Item Opening balance Reversal or transfer Ending balance accrual Others Others

pin

8,776,15 29,253,6 10,020,32 28,009,4 Raw materials

9.29 08.00 0.63 46.66

1,344,48 100,323.2 1,244,16 Self-made semi-finished products

4.54 0 1.34

123,759, 341,971, 28,460,31 437,270, goods in stock

489.67 101.21 1.43 279.45

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

1,734,78 426,211. 1,734,787 426,211.Send goods

7.14 51 .14 51 135,614, 371,650, 40,315,74 466,950, total

920.64 920.72 2.40 098.96 Note: The provision for inventory decline in the current period is mainly due to the decline in market prices of joint alkali products, glass and photovoltaic products at the end of the period, resulting in the net realizable value being lower than the cost.

Reasons for the reversal or write-off of inventory depreciation provisions in the current period √ Applicable □ Not applicable

The provision for inventory depreciation in the current period is written off, mainly because the impaired inventory has been sold. Provision for inventory decline in value on a group basis

□Applicable √Not applicable

Standards for accruing inventory depreciation provisions on a group basis □ Applicable √ Not applicable

(4). The capitalized amount of borrowing costs included in the closing balance of inventory and its calculation standards and basis □Applicable √Not applicable

(5). Explanation of the amortization amount of contract performance costs for the current period □Applicable √Not applicable

Other notes:

□Applicable √Not applicable

11. Assets held for sale

□Applicable √Not applicable

12. Non-current assets due within one year

□Applicable √Not applicable

Debt investments due within one year

□Applicable √Not applicable

Other debt investments due within one year

□Applicable √Not applicable

Other instructions for non-current assets due within one year: None

13. Other current assets

√Applicable □Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Unit: Yuan Currency: RMB

Item Closing balance Value-added tax to be deducted from opening balance 190,101,848.59 177,627,931.61 Other taxes to be deducted 3,839,631.07 2,933,334.15

Total 193,941,479.66 180,561,265.76Other instructions:

Note: Other current assets mainly represent taxes that are expected to be deducted within one year.

14. Debt investment

(1).Debt investment situation

□Applicable √Not applicable

Changes in provision for impairment of debt investments during the current period

□Applicable √Not applicable

(2). Important debt investments at the end of the period

□Applicable √Not applicable

(3).Provision of impairment provisions

□Applicable √Not applicable

Basis for dividing each stage and proportion of impairment provision:

None

Explanation of significant changes in the book balance of debt investments that have experienced changes in loss provisions in the current period: □ Applicable √ Not applicable

The amount of impairment provision for the current period and the basis for assessing whether the credit risk of financial instruments has significantly increased □Applicable √Not applicable

(4). Actual write-off of debt investments in the current period

□Applicable √Not applicable

Among them, the important debt investment situation is written off

□Applicable √Not applicable

Instructions for writing off debt investments:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

15. Other debt investments

(1). Other debt investments

□Applicable √Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Changes in impairment provisions for other debt investments during the current period

□Applicable √Not applicable

(2). Other important debt investments at the end of the period

□Applicable √Not applicable

(3).Provision of impairment provisions

□Applicable √Not applicable

Basis for dividing each stage and proportion of impairment provision:

None

Explanation of significant changes in the book balance of other debt investments that have experienced changes in loss provisions in the current period: □ Applicable √ Not applicable

The amount of impairment provision for the current period and the basis for assessing whether the credit risk of financial instruments has significantly increased □Applicable √Not applicable

(4). Other debt investments actually written off in the current period

□Applicable √Not applicable

Among them, the write-off of other important debt investments

□Applicable √Not applicable

Instructions for writing off other debt investments:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

16. Long-term receivables

(1). Long-term receivables

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Ending balance Beginning balance Discount rate item

Book balance Bad debt provision Book value Book balance Bad debt provision Book value Range 108,977, 108,977, long-term borrowing principal

090.26 090.26 2,796,21 2,796,21 Interest receivable on long-term borrowings

6.10 6.10 111,773, 111,773, total / 306.36 306.36

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

(2). Classified disclosure according to bad debt accrual method

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance Bad debt allowance Book balance Bad debt allowance Book balance

Provision Amount Provision Value Category Book

calculated value

Withdrawal ratio gold gold gold

Amount Ratio Ratio (%) Amount Amount Amount

Example (%) Example

(%) (%)Based on individual items

Allowance for bad debts 111,773,306.36 100.00 111,773,306.36

Prepare

Among them:

Total by group

Accurate provision of bad debts

Prepare

Among them:

Total 111,773,306.36 100.00 111,773,306.36 //Note: Long-term receivables are loans provided by the Company to its associate Bullcrest Mineral Resources Limited with a term of 5 years. This long-term receivable is part of BCT's investment portfolio, that is, the company increases its capital according to BCT's registered capital and borrows low-interest loans from BCT within a certain amount to obtain 50% of BCT's equity. And the borrowing company has priority in distribution rights over dividends.

Provision for bad debts is made individually:

□Applicable √Not applicable

Instructions on accruing bad debt provisions individually:

□Applicable √Not applicable

Provision for bad debts by group:

□Applicable √Not applicable

(3). Provision for bad debts based on the general expected credit loss model

□Applicable √Not applicable

Basis for division of each stage and provision ratio for bad debts

None

Explanation of significant changes in the book balance of long-term receivables that have experienced changes in loss provisions in the current period:

□Applicable √Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

The amount of bad debt provision for the current period and the basis for assessing whether the credit risk of financial instruments has significantly increased

□Applicable √Not applicable

(4). Bad debt provisions

□Applicable √Not applicable

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

□Applicable √Not applicable

Other notes:

None

(5). Long-term receivables actually written off in the current period

□Applicable √Not applicable

Among them, the important write-off of long-term receivables

□Applicable √Not applicable

Instructions for writing off long-term receivables:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

17. Long-term equity investment

(1). Long-term equity investment situation

√Applicable □Not applicable

Unit: Yuan Currency: RMB Increase or decrease in the current period

Beginning of period Equity declaration End of period

Impaired investment balance Other issued balance Other accrual under the investment method Provision Provision note (Account addition Decrease Confirmation Comprehensive cash (Account equity Impairment Others Ending position Par value Investment Investment income Dividends Change in par price Provision balance value) Capital loss Adjustment or profit) Profit

1. Joint ventures

Subtotal

2. Joint ventures

Boolean

Tsuno 25,9

26,00 474, 52,83 Ma Mine 93,8 367,9

0,000 378. 6,138 Industry 41.3 18.38

.00 90 .61Public only 3

Division

148/238

Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Aveni

ra 25,0 - -

35,67 54,69 Limit 75,7 4,377 1,68

3,380 1,486 ed 79.2 ,483. 0,18

.28 .15 (ASX: 1 86 9.48

AEV)

Bullc

rest

Miner -

16,84 17,11 al 501,1 238,

8,144 1,247 Resou 33.25 029.

.12 .62 rces 75

Limit

ed

51,0 - -

78,52 474, 124,6 69,6 3,508 1,91

Subtotal 1,524 378. 38,87 20.5 ,432. 8,21

.40 90 2.38 4 23 9.23

51,0 - -

78,52 474, 124,6 69,6 3,508 1,91

Total 1,524 378. 38,87 20.5 ,432. 8,21

.40 90 2.38 4 23 9.23

(2). Impairment testing of long-term equity investments

□Applicable √Not applicable

Other notes:

None

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

18. Investment in other equity instruments

(1). Investment in other equity instruments

√Applicable □Not applicable

Unit: Yuan Currency: RMB Changes in the current period Designated as fair accumulation Accumulated value in the current period This period

Credited to the current period Credited to the current period Credited to the current period Credited to the current period

Confirm other other and its

Beginning of the period Others Others End of the period

Item Additional Decrease in Shares Comprehensive Comprehensive Change Balance Comprehensive Comprehensive Other Balance

Investment Investment Profit Income Income Included in income Income

Loss of income and loss of other profits

Gains and losses Comprehensive gains and losses

original income

Indekang 77,7 Not invested

60,65 17,13

Agriculture and animal husbandry 86,2 mechanical

3,430 2,779

Equity 10.2 Equity

.60 .62

Investment 2 Invest in Panzhi

80,0 Non-investors 60,00 20,00

00,0 Ji Xing Licheng 0,000 0,000

00.0 Equity Equity .00 .00

0 Investment Investment

Chongqing 150, non-investment

136,7 13,71

Heyou 496, Ji Xing

82,26 4,666

Equity 933. Equity

6.67 .66

Investment 33 Investment in Chongqing 36,8 Non-investment

33,53 3,332

Shu Rong 67,8 Machinery

5,383,500.

Equity 83.3 Equity

.32 00

Investment 2 Invest in NUF shares 35,0 42,9 Non-investment

50,13 15,06

Option 74,6 66,0 Opportunity

5,549 0,890

Capital 58.9 38.1 Equity.54 .59

5 2 Investment 77,7 302, 42,9

341,1 37,04 17,13 15,06

86,2 439, 66,0

Total 06,63 7,166 2,779 0,890 / 10.2 475. 38.1

0.13 .66 .62 .59

2 60 2

(2). Explanation of termination of recognition in this period

√Applicable □Not applicable

Unit: Yuan Currency: RMB Items Transferred to retention due to derecognition Transferred to retention due to derecognition Reasons for derecognition

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Cumulative gains on earnings Cumulative losses on earnings

Dekang Agriculture and Animal Husbandry Equity Investment 4,786,210.22 Total equity investment disposed in this period 4,786,210.22 /

Other notes:

□Applicable √Not applicable

19. Other non-current financial assets

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Closing balance Opening balance is measured at fair value and changes are included in the current period

465,278,185.83 465,278,185.83 Financial assets of profit and loss

Among them: Leshan Commercial Bank Co., Ltd.

340,024,185.83 340,024,185.83 Equity investment in the company

Equity in Sichuan Zhongming Environmental Management Co., Ltd.

92,160,000.00 92,160,000.00 Investment

Chengdu New Chaoyang Crop Science Co., Ltd.

26,000,000.00 26,000,000.00 Equity investment

Mabian Yi Autonomous County Xinshengjia Transportation Construction Co., Ltd.

7,094,000.00 7,094,000.00 Equity investment in limited company

Total 465,278,185.83 465,278,185.83

Other notes:

□Applicable √Not applicable

20. Investment real estate

Investment real estate measurement model

Not applicable

21. Fixed assets

Item list

√Applicable □Not applicable

Unit: Yuan Currency: RMB Item Closing balance Opening balance Fixed assets 7,368,526,645.82 7,567,419,056.88 Fixed assets liquidation

Total 7,368,526,645.82 7,567,419,056.88

Other notes:

□Applicable √Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

fixed assets

(1). Fixed assets situation

√Applicable □Not applicable

Unit: Yuan Currency: RMB Housing construction, office and its

Items Machinery and Equipment Transportation Equipment Total

Other equipment

1. Original book value:

3,768,806 10,953,97 127,226,3 225,783,1 15,075,793, 1. Opening balance

,357.91 8,001.90 38.56 64.60 862.97 552,418,3 389,985,9 7,382,082 2,612,620 952,398,995 2. Increase in the current period

70.58 22.07 .97 .20 .82 25,435,48 127,487,9 7,445,243 340,728.8 160,709,401 (1) Purchase

5.00 43.90 .79 4 .53 (2) Transfer of construction in progress 526,979,0 262,624,6 2,389,982 791,993,682 75.73 24.26 .52 .51 3,809.85 - - - -304,088.22 (3) Foreign currency translation difference

126,646.0 63,160.82 118,091.1

different

9 6

33,401,75 8,357,136 1,819,016 2,919,577 46,497,484. 3. Decrease amount in the current period

4.27 .34 .02 .51 14 33,401,75 8,357,136 1,819,016 2,919,577 46,497,484. (1) Disposal or scrapping

4.27 .34 .02 .51 14 4,287,822 11,335,60 132,789,4 225,476,2 15,981,695, 4. Ending balance

,974.22 6,787.63 05.51 07.29 374.65

2. Accumulated depreciation

1,152,855 6,154,622 70,064,21 124,060,7 7,501,603,1 1. Opening balance

,134.82 ,985.40 8.38 61.60 00.20 160,900,2 734,972,4 10,279,02 23,515,72 929,667,431 2. Increase in the current period

24.25 56.79 5.25 5.23 .52 160,859,9 735,335,2 10,274,77 23,746,08 930,216,134 (1) Provision

92.67 84.93 6.53 0.56 .69 40,231.58 - 4,248.72 - -548,703.17 (2) Foreign currency translation difference

362,828.1 230,355.3

different

4 3

21,067,95 3,553,663 1,364,173 1,727,417 27,713,206. 3. Decrease amount in the current period

1.96 .31 .92 .28 47 21,067,95 3,553,663 1,364,173 1,727,417 27,713,206. (1) Disposal or scrapping

1.96 .31 .92 .28 47 1,292,687 6,886,041 78,979,06 145,849,0 8,403,557,3 4. Closing balance

,407.11 ,778.88 9.71 69.55 25.25

3. Impairment provision

2,485,054 4,284,276 6,771,705.8 1. Opening balance 2,375.06

.83 .00 9 151,104,4 51,327,05 88,308.45 319,891.8 202,839,697 2. Increase in the current period

42.08 5.30 6.69 151,104,4 51,327,05 88,308.45 319,891.8 202,839,697 (1) Provision

42.08 5.30 6 .69 3. Decrease amount in this period

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

153,589,4 55,611,33 88,308.45 322,266.9 209,611,403 4. Closing balance

96.91 1.30 2.58

4. Book value

2,841,546 4,393,953 53,722,02 79,304,87 7,368,526,6 1. Closing book value

,070.20 ,677.45 7.35 0.82 45.82 2,613,466 4,795,070 57,162,12 101,720,0 7,567,419,0 2. Opening book value

,168.26 ,740.50 0.18 27.94 56.88

(2). Temporarily idle fixed assets

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Original book value Accumulated depreciation Impairment provision Book value Remarks

1.5-2GW light

391,261,238 52,457,443. 202,830,647 135,973,147 Temporarily suspended silicon wafer production due to market reasons

.83 96 .80 .07 idle

facilities

391,261,238 52,457,443. 202,830,647 135,973,147

total

.83 96 .80 .07

(3). Fixed assets leased through operating leases

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Closing book value

Houses and buildings 32,253,443.54

Total 32,253,443.54

(4). Fixed assets whose property rights certificates have not been obtained

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Book value Reasons for not obtaining the certificate of ownership Production plant 104,545,734.52 The certificate of ownership is in process

Staff Apartment 34,176,996.98 The property ownership certificate is in process

Office building 245,622,131.23 The property rights certificate is in process

Canteen and multi-functional hall 32,477,465.69 Property rights certificate is in process

Total 416,822,328.42

(5). Impairment testing of fixed assets

√Applicable □Not applicable

The recoverable amount is determined as the net amount after fair value minus disposal costs.

√Applicable □Not applicable

Due to market changes in the photovoltaic industry, the company plans to adjust the 1.5-2GW photovoltaic silicon wafer business of its holding subsidiary Fuxing Technology. This year, the company hired Shanghai Lixin Asset Appraisal Co., Ltd. to conduct an assessment for the purpose of financial report impairment test on the asset group related to its holding subsidiary Fuxing Technology. According to the assessment results of the recoverable amount of the asset group related to Fuxing Technology in the "Asset Appraisal Report" Credit Appraisal Zi (2026) No. 030032, the company made a fixed asset impairment provision of RMB 202,830,600 at the end of the year. The details are as follows:

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Unit: 10,000 yuan Currency: RMB fair value

Key Parameters Recoverable Funds and Disposal Fees

Item Book value Impairment amount Key parameters are determined based on the amount and use

data method

fair value

According to market

Inquiry for price and category

Fuxing Technology Similar Assets Export

fair value

The sales price in the asset group is adjusted based on the survey

33,880.38 13,597.32 20,283.06 and disposal fee

The fixed assets are determined and the price inquiry is estimated.

Rate.

Product purchase cost

According to corporate tax

Rate and inquiry

Estimate confirmed.

Total 33,880.38 13,597.32 20,283.06 / / /

The recoverable amount is determined based on the present value of expected future cash flows.

√Applicable □Not applicable

STK includes goodwill asset group. After impairment test, fixed assets need to be allocated an impairment provision of RMB 9,000. For details, please see this note.

7. 27 Goodwill.

Unit: RMB 10,000 Currency: RMB stable period Closing book value during the stable period Recoverable impairment charges Forecast period Forecast period

The key parameters of the project are the exact value, the amount, the number of years, and the key parameters.

Parameters are determined based on the STK asset group. For details, please refer to the appendix. For details, please refer to the appendix. Fixed assets in the STK asset group 362.59 361.69 0.90

Total 362.59 361.69 0.90 / / / /

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

□Applicable √Not applicable

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Fixed asset liquidation

□Applicable √Not applicable

22. Projects under construction

Item list

√Applicable □Not applicable

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Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Construction in progress 2,128,513,414.49 2,343,975,843.06 Project materials 7,515,320.95 10,493,587.71

Total 2,136,028,735.44 2,354,469,430.77

Other notes:

□Applicable √Not applicable

Construction in progress

(1).Construction in progress situation

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

minus

item value

Book balance Impairment provision Book value Book balance Book value

Prepare

500,000 tons/year double sugar 740,036, 508,240,336 508,240,3

740,036,738.96

Phosphate and supporting projects 738.96 .67 36.67 8GW photovoltaic packaging materials 946,219, 914,296,755 914,296,7

946,219,918.28

Materials and products project 918.28 .83 55.83 Mabian Phosphate Mine Development Project 19,252,0 106,666,708 106,666,7

19,252,086.37

Heading 86.37 .30 08.30 Liujiashan Phosphate Mine Development 47,115,9 14,689,517. 14,689,51

47,115,935.34

Project 35.34 01 7.01 Wu Jun Solar Energy

105,137, 102,861,222 102,861,2 600T/D cold repair technology 105,137,047.26

047.26 .22 22.22 modified

122,555, 104,470,902 104,470,9 United Alkali Environmental Protection Project 122,555,311.55

311.55 .51 02.51

11,724,9 82,799,499. 82,799,49 Methionine technical transformation project 11,724,955.95

55.95 43 9.43 Information system construction, etc. 42,790,4 136,471, 252,072,251 252,072,2

179,261,884.58

Other projects 63.80 420.78 .07 51.07Hebang Headquarters Big Data 152,275,520 152,275,5 Center .94 20.94

105,603,129 105,603,1 photovoltaic power station

.08 29.08 2,171,303,878.2 42,790,4 2,128,51 2,343,975,8 2,343,975Total

9 63.80 3,414.49 43.06 ,843.06

(2). Changes in important projects under construction during the current period

√Applicable □Not applicable

Unit: 10,000 yuan Currency: RMB

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

engineering its

Accumulated interest in the current period: Current period This period

Capital transferred in this period Interest items Budget at the beginning of the period Other Project funds at the end of the period

Increase Fixed Accounting Accumulated Interest Capital Name Amount Remaining Decrease Balance Progress Source Amount Asset Calculation Ratio Calculation Capitalization Rate Amount

Amount Example Amount Deposit (%)

(%) Amount

500,000

tons/year raised

700, 50, 23,1 74,0

Shuanggan 15.9 Construction 9,65 7,60 & Since

887. 824 79.6 03.6 2.96 Phosphine and 2 medium 2.85 6.91 chips

70.03 4 7

Supporting

Project

annual output

8GW

photovoltaic

300, 91, 94,6

Packaging 4,81 1,62 86.7 Construction 9,84 825. Self-financing

0. 429 21.9 2.64Material 6.80 4.48 3 Medium 3.02 16

00 .68 9

Made in time

Item

Head

Mabian

152, 10, 13,8

Phosphate rock 5,12 1,92 48.2 Construction

713. 666 64.2 Self-financed development 2.76 5.21 2 Medium

34 .67 3

Project

Hebang

Headquarters 40,0 15, 19,7

4,53 99.2 transferred

Large number 00.0 227 64.2 Self-raised

6.72 6 solid

According to 0 .55 7

heart

1,19 37,6 35,2 170, 19,4

,14 8,43

Total 3,60 55.9 52.9 550. 95.8

7.9 2.06

1.04 2 8 87 7

(3). Provision for impairment of projects under construction in the current period

□Applicable √Not applicable

(4) Impairment testing of projects under construction

√Applicable □Not applicable

The recoverable amount is determined as the net amount after fair value minus disposal costs.

√Applicable □Not applicable

Due to market changes in the photovoltaic industry, the company plans to adjust the 1.5-2GW photovoltaic silicon wafer business of its holding subsidiary Fuxing Technology. This year, the company hired Shanghai Lixin Asset Appraisal Co., Ltd. to conduct an assessment for the purpose of financial report impairment test on the asset group related to Fuxing Technology, its holding subsidiary. According to the assessment results of the recoverable amount of the asset group related to Fuxing Technology in the "Asset Appraisal Report" Credit Appraisal Zi (2026) No. 030032, the company made an impairment provision of RMB 42.7905 million for projects under construction at the end of the year. The details are as follows: Unit: RMB 10,000 Currency: RMB

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

fair value

Key Parameters Recoverable Funds and Disposal Fees

Item Book value Impairment amount Key parameters are determined based on the amount and use

data method

fair value

according to market

Inquiries and categories

Like assets out

Fuxing Technology

The sales price is adjusted to fair value based on the surveyed asset group.

4,279.05 0.00 4,279.05 Reconciliation and disposal fees Inquiry and valuation of construction in progress

Disposal expense rate. Calculate. Cheng

根据公司

Tax rate and inquiry

The price is accurate

Determined.

Total 4,279.05 0.00 4,279.05 / / /

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable √Not applicable

Reasons for the obvious inconsistency between the above information and the information used in impairment testing in previous years or external information □ Applicable √ Not applicable

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Engineering supplies

(1). Project material situation

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Ending balance Beginning balance item Impairment Impairment book balance Book value Book balance Book value

Prepare Prepare construction materials 10,493,587.71 10,493,587.71

7,515,320.95 7,515,320.95

Capital

Total 7,515,320.95 7,515,320.95 10,493,587.71 10,493,587.71Other instructions:

None

23. Productive biological assets

(1).Producing biological assets using cost measurement model

□Applicable √Not applicable

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(2) Impairment testing of productive biological assets using the cost measurement model

□Applicable √Not applicable

(3).Producing biological assets using fair value measurement model

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

24. Oil and gas assets

(1). Oil and gas assets situation

□Applicable √Not applicable

(2). Impairment testing of oil and gas assets

□Applicable √Not applicable

Other notes:

None

25. Right-of-use assets

(1). Right-of-use assets

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Items Houses and buildings Machinery and transport equipment Total

1. Original book value

1. Opening balance 49,681,494.15 25,323,986.50 75,005,480.65 2. Increase in the current period 33,692,218.04 764,364.80 34,456,582.84 (1) Lease 34,684,623.42 935,719.90 35,620,343.32 (2) Difference in foreign currency translation -992,405.38 -171,355.10 -1,163,760.48 3. Reduction amount in the current period 18,279,354.50 18,279,354.50 (1) Termination of lease contract 18,279,354.50 18,279,354.50 4. Closing balance 83,373,712.19 7,808,996.80 91,182,708.99

2. Accumulated depreciation

1. Opening balance 36,108,542.92 8,873,005.22 44,981,548.14 2. Increase in the current period 11,977,678.92 2,514,769.34 14,492,448.26 (1) Provision 12,706,308.60 2,665,941.34 15,372,249.94 (2) Foreign currency translation difference -728,629.68 -151,172.00 -879,801.68 3. Reduction amount in this period 4,569,838.56 4,569,838.56 (1) Termination of lease contract 4,569,838.56 4,569,838.56 4. Closing balance 48,086,221.84 6,817,936.00 54,904,157.84

3. Impairment provision

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

1. Opening balance

2. Increase in the current period 7,796.35 2,473.57 10,269.92 (1) Provision 7,796.35 2,473.57 10,269.92 3. Decrease in the current period

3. Closing balance 7,796.35 2,473.57 10,269.92

4. Book value

1. Book value at the end of the period 35,279,694.00 988,587.23 36,268,281.23 2. Book value at the beginning of the period 13,572,951.23 16,450,981.28 30,023,932.51

(2). Impairment testing of right-of-use assets

√Applicable □Not applicable

The recoverable amount is determined as the net amount after fair value minus disposal costs.

√Applicable □Not applicable

STK includes the goodwill asset group which has been tested for impairment. The right-of-use assets need to be allocated an impairment provision of RMB 10,300. For details, see Note 7.27 Goodwill.

Unit: 10,000 yuan Currency: RMB fair value

Key Parameters Recoverable Funds and Disposal Fees

Item Book value Impairment amount Key parameters are determined based on the amount and use

According to

way

STK Asset Group See the notes for details. See the notes for details. See the use in the notes for details. 411.48 410.45 1.03 VII. 27 Business. VII. 27 Business. VII. 27 Business rights assets. Reputation. Reputation.

Total 411.48 410.45 1.03 / / /

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable √Not applicable

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

□Applicable √Not applicable

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

□Applicable √Not applicable

Other notes:

None

26. Intangible assets

(1).Intangible assets

√Applicable □Not applicable

Unit: Yuan Currency: RMB Patents and proprietary mining rights, software, trademarks and proprietary

Project Land use rights Total

Technology Exploration Rights System Licensing Rights

1. Original book value

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

5,890

510,057,44 201,898,36 1,708,417 372,368, 2,798,633, 1. Opening balance, 921.

5.78 9.40 ,910.50 491.89 139.19

21,80

2. Increase in this period 150,370,95 251,793,0 185,705, 609,675,32

5,643

Amount 6.07 22.25 701.75 3.49 .42

21,80

150,370,95 251,793,0 184,253, 608,223,53 (1) Purchase 5,643

6.07 22.25 916.38 8.12

.42

(2) Internal research and development 7,081,77 7,081,771. Development 1.06 06

• -(3) Foreign currency discount

5,629,98 5,629,985. Calculate the difference

5.69 69 3. Decrease in this period 10,116,4 10,866,021

749,560.63

Amount 60.70 .33

10,116,4 10,866,021 (1) Disposal 749,560.63

60.70 .33 27,69

659,678,84 201,898,36 1,960,210 547,957, 3,397,442, 4.期末余额 6,565

1.22 9.40 ,932.75 732.94 441.35

.04

2. Accumulated amortization

1,188

76,729,883 95,957,192 10,068,56 225,794, 409,739,02 1. Opening balance, 889.

.61 .52 8.38 494.55 8.75

2.本期增加 14,757,689 22,620,076 13,295,02 983,9 11,788,3 63,445,092金额 .07 .62 7.30 57.65 42.21 .85

14,757,689 22,620,076 13,295,02 983,9 15,207,2 66,863,984（1）计提

.07 .62 7.30 57.65 34.10 .74

• • (2) Foreign currency discount

3,418,89 3,418,891. Calculate the difference

1.89 89 3. Decrease in this period 10,116,4 10,337,140

220,679.33

Amount 60.70 .03

10,116,4 10,337,140 (1) Disposal 220,679.33

60.70 .03 2,172

91,266,893 118,577,26 23,363,59 227,466, 462,846,98 4. Closing balance, 847.

.35 9.14 5.68 376.06 1.57

3. Impairment provision

1. Opening balance

79,552,492 1,216

2. Increase in this period 3,923,25 84,691,908

.13,161.

Amount 4.77 .75

79,552,492 1,216

3,982,86 84,751,522 (1) Provision .13,161.

8.73 .71

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

-

(2) Foreign currency discount

59,613.9 -59,613.96 Calculate the difference

3. Reduction in this period

Amount

79,552,492 1,216

3,923,25 84,691,908 4. Closing balance .13,161.

4.77 .75

4. Book value

24,30

1.期末账面 568,411,94 3,768,608. 1,936,847 316,568, 2,849,903,

7,555

Value 7.87 13 ,337.07 102.11 551.03 .85

4,702

2. Opening book 433,327,56 105,941,17 1,698,349 146,573, 2,388,894,

,031.

价值 2.17 6.88 ,342.12 997.34 110.44注1：无形资产本期主要新增购置情况如下：

increase amount

Project Main reason

(10,000 yuan)

Land use rights 15,037.10 The Indonesian Hebang project obtained land use rights.

Mining rights and prospecting Obtained Xinjiang Minfeng Kapan silver mine, Wollongong lead-zinc polymetallic mine, Huili Shangwuji copper

25,179.30

Mine, Miansawa gold mine in Mianning County and other exploration rights.

Software system 2,180.56 The information management system was put into use.

Trademarks and franchises. The subsidiary of Tianyuan Co., Ltd. was acquired through public listing on the Southwest United Equity Exchange.

18,570.57

The operating capacity of Simabian Wuxian Mining Co., Ltd. is 25,000 tons/year of yellow phosphorus.

Total 60,967.53

Note 2: The increase in internal research and development of trademarks and franchise rights in this period is mainly due to the expenditure of the holding subsidiary STK to obtain pesticide registration certification in various countries around the world, as well as the impact of foreign currency exchange rate fluctuations; the decrease in this period is due to the carryover of assets that have expired and been amortized.

At the end of the period, the proportion of intangible assets formed through the company's internal research and development to the balance of intangible assets was 4.64%.

(2). Data resources recognized as intangible assets

□Applicable √Not applicable

(3). Land use rights for which property rights certificates have not been obtained.

□Applicable √Not applicable

(4). Impairment testing of intangible assets

√Applicable □Not applicable

The recoverable amount is determined as the net amount after fair value minus disposal costs.

√Applicable □Not applicable

This year, the company hired Shanghai Lixin Asset Appraisal Co., Ltd. to conduct an assessment on the relevant asset groups of its holding subsidiary Fuxing Technology for the purpose of impairment testing of financial reports. According to the "Asset Appraisal Report" Credit Rating Report (2026) No. 030032, the company Based on the evaluation results of the recoverable amount of Xingke's related asset groups, the company made provision for impairment of intangible assets of RMB 80.7687 million at the end of the year. In addition, the company's controlled subsidiary STK made provision for impairment of intangible assets of RMB 3.732 million this year. The specific situation is as follows:

Unit: 10,000 yuan Currency: RMB

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

fair value and

Items of key parameters Book value Recoverable amount Impairment amount Key parameters of disposal costs

Determine the basis for determining the method

fair value root

According to market inquiry

and similar assets

Fuxing Science and Technology Assets Sales Price Adjustment

The fair value and 14,048.96 5,972.09 8,076.87 were determined based on the investigation of the unbalanced real estate group, and the disposal

Disposal rates. price estimate. Intangible assets purchase cost based on

corporate tax rates and

Inquiry and estimate are accurate

Determined.

fair value root

According to market inquiry

and similar assets

STK asset group sales price adjustment

The fair value is determined based on the intangible assets in the investigation 10,426.15 10,052.95 373.20, and the treatment

Disposal rates. price estimate. Property purchase cost is based on

corporate tax rates and

Inquiry and estimate are accurate

Determined.

Total 24,475.11 16,025.04 8,450.07 / / /

The recoverable amount is determined based on the present value of expected future cash flows.

√Applicable □Not applicable

STK includes goodwill asset group. After impairment test, intangible assets need to be allocated impairment provision of RMB 250,900. For details, please see Note 7.27 Goodwill.

Unit: 10,000 yuan Currency: RMB

Stable period Closing book value in the stable period Recoverable impairment charges Forecast period Forecast period

The key parameters of the project are the exact value, the amount, the number of years, and the key parameters.

Parameters are determined based on STK asset group. For details, please refer to the appendix. For details, please refer to the appendix. STK asset group 10,052. 10,027.

Intangible assets in 25.09 Note 7, 7, 27 Business Note 7, Fixed assets in 95 86

27 goodwill 27 goodwill

10,052. 10,027.

Total 25.09 / / / / 95 86

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

□Applicable √Not applicable

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

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27. Goodwill

(1).Original book value of goodwill

√Applicable □Not applicable

Unit: Yuan Currency: RMB Name of invested unit Increase in this period Decrease in this period

Or events that form goodwill. Opening balance. Business combination. Disposal of closing balance.

item formed

Hebang Nongke 1,263,185,061.91 1,263,185,061.9

S.T.K. 259,194,145.22 259,194,145.22 Yongjiang Industrial 514,970,016.67 514,970,016.67 2,037,349,223.80 2,037,349,223.8

total

(2).Provision for impairment of goodwill

√Applicable □Not applicable

Unit: Yuan Currency: RMB Name of the invested unit Increase in the current period Decrease in the current period Closing balance or events forming goodwill Opening balance

Provision Disposal

item

S.T.K. 198,943,679.97 60,250,465.25 259,194,145.22 Total 198,943,679.97 60,250,465.25 259,194,145.22

Due to the continued losses of its holding subsidiary STK and the unstable external operating environment, the company hired Shanghai Lixin Asset Appraisal Co., Ltd. to conduct an assessment on the STK asset group this year for the purpose of impairment testing of financial reports. According to the assessment results of the recoverable amount of the STK asset group in the "Valuation Report" Credit Appraisal Zi (2026) No. 030005, the company made an impairment provision of RMB 60.5207 million for the STK asset group at the end of the year. The specific apportionment situation is as follows:

Item Provision for impairment Remarks

Goodwill 60,250,465.25 As of December 31, 2025, impairment has been fully accrued.

Fixed assets 9,049.89 The excess of asset group impairment over goodwill will be apportioned based on the book value of the assets. Right-of-use assets 10,269.92 The excess of asset group impairment over goodwill will be apportioned based on the asset's book value. Intangible assets 250,909.62 The excess of asset group impairment over goodwill will be apportioned based on the asset's book value. Total 60,520,694.68

(3). Relevant information on the asset group or asset group combination where the goodwill is located

√Applicable □Not applicable

Whether it is separated from its previous business operations

Name The composition and basis of the asset group or portfolio it belongs to Annual maintenance part and basis

Zhihebang Agricultural Science's production business forms products glyphosate and diglyphosate, glyphosate

By product belongs to

Hebang Agricultural Science and Technology's glyphosate and diglyphosate production equipment is independent of the production of other products such as cobalt base.

The chemical industry is divided into production groups and production lines, which can achieve independent sales and generate cash inflows, so the company

Department

The company treats it as a portfolio of asset groups.

All STK's production operations form the final product biopesticides, and its long-term

By product belongs to

The future assets are all located overseas and are independent of other asset groups of the company.

STK Asset Group Chemical Industry Branch This product can achieve independent sales and generate cash inflow, so the company

Department

Think of it as a group of assets.

Yongjiang Industrial Assets Yongjiang Industrial consists of three businesses (natural gas pipeline transmission business, gas station). By product, it belongs to

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

production group business, gas filling station business), of which gas station business, gas filling station industry and chemical industry are divided into

The assets of the business are independent of other businesses and can be sold independently to form a cash flow department.

Financial inflows are regarded as two independent asset groups; Yongjiang Industrial Natural

The gas pipeline transportation business mainly includes the Company's joint alkali equipment, Hebang Nongke Duo

The glyphosate plant supplies gas, and the cash inflow depends on the joint alkali plant and bisglyphosate

The normal operation of the device; at the same time, the natural gas pipeline business can ensure the joint

Stable gas supply for alkali equipment and bisglyphosate equipment, so Yongjiang Industrial Natural Gas

Gas pipeline transmission assets have synergy with joint-alkali equipment assets and diglyphosate assets

The effect should be regarded as a combination of asset groups.

Changes in asset group or asset group combination

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

(4). Specific method for determining recoverable amount

The recoverable amount is determined as the net amount after fair value minus disposal costs.

□Applicable √Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

√Applicable □Not applicable

Unit: 10,000 yuan Currency: The key forecast period of the RMB stabilization period

Forecast period parameters Key parameters for stable period

Recoverable amount Parameters during the forecast period (Growth Key parameter items Book value Impairment amount (Growth

Determination of the number of years, the rate of interest, the rate of interest, and the profit

Determined based on profit rate, data rate, etc.)

discount rate

etc.) based on the

Asset group

past

Forecast operating performance during the stable period,

Growth rate: No increase in industry revenue during the stable period Industry’s

0%, profit growth, profit, etc. and Bangnong's growth rate development trend

246,053.80 345,571.80 5-year profit rate Indicators and forecast asset group 2.36%, profit and management

6.26%, profit rate in the last year of the period. Management’s comments on

The discount rate is the same. 6.29% Market Development

8.32% expansion forecast

period

estimate

Based on this

Stable asset group

The operating growth rate in the forecast period has been 0%, and there has been no increase in industry revenue during the stable period. The industry's profit rate in the last year of the development trend is 16.16%, profit performance, long-term profit rate, profit rate, profit rate, etc. 61,649.40 10,800.00 50,849.40 5-year STK Asset Group 61,649.40 10,800.00 50,849.40 5-year industry indicators are consistent with the forecast. 8.06% rate

management pair

14.10% market share

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

exhibition preview

period

estimate

Based on this

Asset group

past

stable period

Forecast period operating performance,

Growth rate: No increase in industry revenue during the stable period Industry’s

0%, profit growth, profit, etc. Yongjiang Industrial’s growth rate and development trend

350,509.90 599,959.23 5-year profit rate Indicators and forecast asset group 7.28%, profit potential and management

5.41%, profit rate for the last year of the period. Management’s comments on

The discount rate is the same. 3.67% Market Development

8.98%

exhibition preview

period

estimate

Total 658,213.10 956,331.03 50,849.40 / / / / /

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

□Applicable √Not applicable

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

□Applicable √Not applicable

(5) Performance commitments and corresponding goodwill impairment

There is a performance commitment when goodwill is formed and the reporting period or the previous period of the reporting period is within the performance commitment period

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

28. Long-term deferred expenses

√Applicable □Not applicable

Unit: Yuan Currency: RMB item Beginning balance Increase in the current period Amortization in the current period Other decreases Ending balance Market certification fee 1,226,415.11 392,452.80 833,962.31Total 1,226,415.11 392,452.80 833,962.31Other notes:

None

29. Deferred income tax assets/deferred income tax liabilities

(1). Deferred income tax assets without offset

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

Items: Deductible temporary differences, deferred income taxes, deductible temporary differences, deferred income tax differences, assets

Provision for bad debts of accounts receivable 86,465,812.64 12,962,961.27 95,572,432.69 15,913,986.89 Provision for asset impairment 456,882,786.51 68,532,417.98 142,117,274.90 21,317,591.23

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Lease liabilities 8,398,920.29 1,814,539.84 15,164,165.92 2,274,624.88 Accrued expenses, deferred revenue

25,312,803.12 3,796,920.47 5,153,930.35 773,089.55 profit

Estimated liabilities 16,150,363.96 2,422,554.60

Withholding of unpaid salary expenses

4,959,243.16 743,886.47 38,191,258.40 5,728,688.76 for use

Other equity instrument investments

12,346,569.40 1,851,985.41 Changes in fair value

Recoverable losses 274,858,072.69 42,041,507.62 413,374,844.35 62,833,219.78 Unrealized deduction for internal sales

81,275,449.13 12,191,317.37 87,590,089.62 13,138,513.44Current profit

Business combination under common control

21,219,176.87 3,182,876.53 22,628,694.60 3,394,304.19 and adjust the asset value

Total 975,522,628.37 147,688,982.15 832,139,260.23 127,226,004.13

(2). Deferred income tax liabilities without offset

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

Items Deferred income tax Deferred income tax taxable temporary differences Taxable temporary differences

Liabilities Liabilities

Issuance of convertible bonds

Corresponding Liability Department

428,443,430.86 64,266,514.63 428,495,409.21 64,274,311.38 points and tax base

basic difference

Right-of-use assets 8,835,941.23 1,869,596.25 18,269,054.88 2,740,358.25 Fixed asset discount

Differences between old-year accounting 710,964,359.19 106,644,653.90 787,036,021.41 118,055,404.49 and tax law

Non-identical control

Enterprise merger assets 18,593,487.60 2,789,023.14 19,019,672.40 2,852,950.86 Asset appraisal value added

Total 1,166,837,218.88 175,569,787.92 1,252,820,157.90 187,923,024.98

(3). Deferred income tax assets or liabilities presented on a net basis after offsetting

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

Deferred income tax, deferred income after offset, deferred income tax, deferred income after offset

Assets and liabilities offset each other. Tax assets or liabilities balance. Assets and liabilities. Tax assets or liabilities balance.

Amount Amount Mutual offset amount Amount

Deferred income tax assets 1,788,298.08 145,900,684.07 127,226,004.13 Deferred income tax liabilities 1,788,298.08 173,781,489.84 187,923,024.98

(4).Details of deferred income tax assets not recognized

√Applicable □Not applicable

Unit: Yuan Currency: RMB

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Item Ending balance Beginning balance

Provision for bad debts of accounts receivable 21,901,036.48 687,466.16 Provision for asset impairment 350,616,991.96 1,425,525.81 Deferred income 60,789,996.52

Fair value of investments in other equity instruments

41,042,915.35 27,905,147.53 changes

Deductible losses 363,112,310.21 85,998,772.41

Total 837,463,250.52 116,016,911.91 Because the company is uncertain whether some subsidiaries will obtain sufficient taxable income in the future, their deductible temporary differences and deductible losses are not recognized as deferred income tax assets.

(5). Deductible losses that have not been recognized as deferred income tax assets will expire in the following years

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Year Ending amount Beginning amount Remarks

2025 6,303,327.30

2026 14,854,046.82 14,911,422.71

2027 16,901,256.37 12,312,697.53

2028 54,471,890.64 10,346,901.81

2029 216,661,737.18 42,124,423.06

2030 60,223,379.20

Total 363,112,310.21 85,998,772.41 /

Other notes:

□Applicable √Not applicable

30. Other non-current assets

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

minus

Item impairment value

Book balance Book value Book balance Book value provision Approximate

Prepare

Mine exploration and development

7,913,236.77 7,913,236.77

Ben

Value-added tax to be deducted 58,889,705.14 58,889,705.14 34,067,019.31 34,067,019.31 Prepaid construction long-term capital

566,965,374.60 566,965,374.60 274,024,219.71 274,024,219.71 Property-related amounts

Total 633,768,316.51 633,768,316.51 308,091,239.02 308,091,239.02

Other notes:

The top five prepayments related to the purchase and construction of long-term assets by prepayment object at the end of the period:

Account for other non-current assets at the end of the period Name of the unit Contents of the amount Ending balance

Proportion of total amount (%)

Minmetals Steel Chengdu Co., Ltd. Steel 114,231,000.00 18.02

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Account for other non-current assets at the end of the period Name of the unit Contents of the amount Ending balance

Proportion of total amount (%)

Wutongqiao District Land Reserve Center Land payment 100,000,000.00 15.78

Hongze Xinneng (Chongqing) Intelligent Equipment Co., Ltd. Equipment model 37,376,950.00 5.90

Division

Sichuan Shenzhen-Guangzhou Cooperative Industrial Investment and Development Co., Ltd. House purchase price 37,000,000.00 5.84

Division

Blue Star (Beijing) Chemical Machinery Co., Ltd. Equipment model 23,765,524.25 3.75

Total 312,373,474.25 49.29

31. Assets with restricted ownership or use rights

√Applicable □Not applicable

Unit: Yuan Currency: RMB End of Period Beginning of Period

Item Book balance Book price Restricted category Restricted situation Book balance Book price Restricted category Restricted situation Amount Value Type Condition Amount Value Type Condition is used to issue a pledge. It is used to issue a credit instrument. Letter of credit, pledge, acceptance guarantee, guarantee, bill of exchange, pledge money; letter of guarantee, guarantee of mine and soil deposit; mineral capital 14,778, 14,778, 147,859 147,859

Pledged land reclamation mountain land fee 236.47 236.47 ,811.40 ,811.40

Guarantee reclamation guarantee gold, mining certificate gold, mine geology, mountain geological environment management, environmental management and recovery fund. fund. 513,730 513,730 pledged for opening

,580.35 ,580.35 with bank receivables

Acceptance exchange financing

ticket

For silver mortgage For silver fixed capital 76,760, 76,760, 320,210 272,552

Mortgage bank loan bank loan asset 299.32 299.32,161.03,380.86

mortgage mortgage

used to sue

Fixed assets 30,512, 30,512, litigation property

Mortgage

Production 502.77 502.77 Security guarantee

protect

Intangible assets 56,856, 56,856, used for silver 99,273, 82,282, used for mortgage, used for silver mortgage

Industry 000.00 000.00 Bank loan 889.83 976.23 Bank loan

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mortgage mortgage

used to sue

Intangible assets 14,786, 14,786, litigation property

Mortgage

Production 941.48 941.48 Security guarantee

protect

1,081,0 1,016,4 // 193,693 193,693

Total // 74,442. 25,748.

,980.04 ,980.04

61 84

Other notes:

None

32. Short-term borrowings

(1).Classification of short-term loans

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Pledge loan

Mortgage loans 250,000,000.00 350,000,000.00 Guaranteed loans 1,706,200,000.00 1,451,129,834.53 Credit loans 350,000,000.00 550,000,000.00 Borrowing interest accrued 1,858,808.27 2,107,355.02

Total 2,308,058,808.27 2,353,237,189.55 Description of short-term loan classification:

Note 1: The mortgage loan of 250 million yuan was provided by the subsidiary Hebang Salt Mine with salt mining rights as collateral, and Hebang Group provided a guarantee.

Note 2: The guaranteed loan composition is as follows:

Borrowing unit Guarantee unit Ending short-term loan balance The Company Hebang Group 250,000,000.00 The Company Hebang Nongke 400,000,000.00 Hebang Nongke The Company 300,000,000.00 Wujun Solar The Company 384,000,000.00 Chongqing Wujun The Company 592,200,000.00 Yongjiang Industrial Company 10,000,000.00 Yongjiang Gas Station Company 10,000,000.00 Hebang Phosphate Mine Company 10,000,000.00

Total 1,956,200,000.00

(2). Overdue short-term borrowings that have not been repaid

□Applicable √Not applicable

Among them, the important overdue short-term borrowings that have not been repaid are as follows:

□Applicable √Not applicable

Other notes:

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

□Applicable √Not applicable

33. Trading financial liabilities

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

34. Derivative financial liabilities

□Applicable √Not applicable

35. Notes payable

(1). List of bills payable

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Category Ending balance Beginning balance

commercial acceptance bill

Bank acceptance bill 669,343,934.47

Total 669,343,934.47 The total amount of notes payable that was due and unpaid at the end of this period was 0 yuan. The reason for not paying when due is none

36. Accounts payable

(1). Presentation of accounts payable

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Within 1 year 685,620,576.26 1,175,169,188.76 1-2 years 106,275,282.46 130,169,843.27 2-3 years 66,488,105.74 48,486,890.77 More than 3 years 72,137,895.58 84,473,026.79

Total 930,521,860.04 1,438,298,949.59

(2). Important accounts payable that are aged more than 1 year or are overdue

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Closing balance Reasons for outstanding repayment or carry-forward Sichuan Yongsheng Hongji Construction Engineering Co., Ltd. 25,419,169.59 The contract has not been completed

Information Industry Electronics Eleventh Design Institute

20,522,849.23 Not settled yet

Engineering Co., Ltd.

Chongqing Wanmei Construction Engineering Co., Ltd. 12,820,394.73 The contract has not been completed

Leshan Chengdian Electric Power Engineering Design Co., Ltd. 12,640,806.84 The contract has not been completed

Mabian Yi Autonomous County Finance and Treasury Payment Center 10,105,679.80 The contract has not been completed

Total 81,508,900.19 /

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Other notes:

√Applicable □Not applicable

(2) Classification according to nature of payment

Item Closing balance Opening balance Payables from operating activities 593,756,632.10 1,051,265,585.12 Payables from non-operating activities 336,765,227.94 387,033,364.47

Total 930,521,860.04 1,438,298,949.59

37. Advance payments

(1). Presentation of advance receipts

□Applicable √Not applicable

(2). Important advances from customers aged more than 1 year

□Applicable √Not applicable

(3). The amount and reasons for significant changes in book value during the reporting period

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

38. Contract liabilities

(1).Contract liabilities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Closing balance Opening balance Prepayment for goods received according to the contract 118,030,893.80 45,100,553.29 Estimated rebate in kind from sales 11,684,678.30

Total 129,715,572.10 45,100,553.29

(2).Important contract liabilities with an aging of more than 1 year

□Applicable √Not applicable

(3). The amount and reasons for significant changes in book value during the reporting period

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount of change Reason for change

Payments received in advance according to the contract 72,930,340.51 Mainly due to the increase in the prices of some products, and the increase in advance payments is expected to be in-kind rebates 11,684,678.30 Implementation of the in-kind rebate sales policy for nutritional supplement product customers

Total 84,615,018.81 /

Other notes:

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

□Applicable √Not applicable

39. Payable to employees

(1). Presentation of employee benefits payable

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Opening balance Increase in the current period Decrease in the current period Ending balance

1. Short-term salary 51,696,237.14 644,690,842.71 622,741,670.99 73,645,408.86

2. Post-employment benefits - defined contribution 4,716,185.40 53,003,666.24 48,626,278.80 9,093,572.84 plan

3. Dismissal benefits 1,527,024.00 8,560,562.38 9,269,060.38 818,526.00

4. Other benefits that expire within one year

profit

Total 57,939,446.54 706,255,071.33 680,637,010.17 83,557,507.70

(2). Presentation of short-term remuneration

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Opening balance Increase in the current period Decrease in the current period Ending balance

1. Salaries, bonuses, allowances and subsidies 50,048,417.09 595,989,712.00 574,283,435.34 71,754,693.75

2. Employee welfare fees 150,136.30 10,898,914.04 9,904,839.94 1,144,210.40

3. Social insurance premiums 1,395,337.94 30,425,629.21 31,202,389.65 618,577.50 Including: medical insurance premiums 1,250.35 26,592,629.62 26,565,646.78 28,233.19 Work-related injury insurance premiums 1,391,034.34 3,569,703.77 4,373,447.05 587,291.06

Maternity insurance premium 3,053.25 263,295.82 263,295.82 3,053.25

4. Housing provident fund 254.11 6,412,804.72 6,394,034.36 19,024.47

5. Union funds and employee education 102,091.70 963,782.74 956,971.70 108,902.74 funds

6. Short-term paid absences

7. Short-term profit sharing plan

Total 51,696,237.14 644,690,842.71 622,741,670.99 73,645,408.86

(3). Display of defined contribution plan

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Opening balance Increase in the current period Decrease in the current period Ending balance

1. Basic pension insurance 477,865.74 48,537,772.32 44,088,112.05 4,927,526.01

2. Unemployment insurance premium 442,060.92 1,638,288.79 1,476,519.81 603,829.90

3. Enterprise annuity payment

4. Others 3,796,258.74 2,827,605.13 3,061,646.94 3,562,216.93

Total 4,716,185.40 53,003,666.24 48,626,278.80 9,093,572.84

Other notes:

√Applicable □Not applicable

Note: Other subsidiary companies, STK, operate defined contribution plans in accordance with the provisions of Section 14 of Israel’s Severance Pay Law. Under the plan, STK pays a fixed amount, and if the fund does not have sufficient funds to cover current or past

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STK does not have any legal or constructive obligation to make further payments for all employee benefits related to the employee's services during the period. Contributions to defined contribution plans related to severance pay or retirement benefits are recognized as an expense when employee services are received concurrently with the contributions and there are no additional provisions in the financial statements.

40. Taxes payable

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Value-added tax 7,873,739.71 13,500,911.07Corporate income tax 13,770,799.15 14,872,905.75Personal income tax 2,987,028.80 2,471,326.21Urban construction tax 135,582.07 391,598.81Education fee surcharge 80,692.98 183,195.81 Local education surcharge 53,795.32 122,130.55 Property tax 218,789.91 218,789.91 Land use tax 674,772.00 674,772.00 Stamp tax 874,679.71 811,145.02 Resource tax 2,250,738.77 754,636.45 Environmental protection tax 293,120.32 501,364.28 Other government funds 96,578.79 243,219.38 Other foreign taxes 181,230.57 187,176.31

Total 29,491,548.10 34,933,171.55Other instructions:

None

41. Other payables

(1).Project list

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

interest payable

Dividends payable

Other payables 18,897,223.58 19,225,866.29 Total 18,897,223.58 19,225,866.29

Other notes:

□Applicable √Not applicable

(2).Interest payable

Classification list

□Applicable √Not applicable

Important overdue interest payable:

□Applicable √Not applicable

Other notes:

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

□Applicable √Not applicable

(3). Dividends payable

Classification list

□Applicable √Not applicable

(4).Other payables

Present other payables according to nature of payment

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Security deposit and deposit 18,034,838.01 10,685,135.39 Fees payable 560,180.40 8,004,077.21 Others 302,205.17 536,653.69

Total 18,897,223.58 19,225,866.29

Important other payables aged more than 1 year or overdue

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

42. Liabilities held for sale

□Applicable √Not applicable

43. Non-current liabilities due within 1 year

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Long-term borrowings due within 1 year 260,080,450.94 745,327,201.00 Lease liabilities due within 1 year 14,125,244.79 5,967,522.98 Deferred income amortized within 1 year

Provision of interest on long-term borrowings due within 1 year 233,231.80 683,521.34

Total 274,438,927.53 751,978,245.32Other instructions:

None

44. Other current liabilities

Other current liabilities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Output tax to be transferred from contract liabilities 9,516,040.30 4,451,202.01

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Total 9,516,040.30 4,451,202.01

Changes in short-term bonds payable:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

45. Long-term loans

(1). Classification of long-term loans

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

Pledge loan

Mortgage loans 17,303,678.54 40,510,493.66 Guaranteed loans 1,227,903,672.82 475,277,308.64 Credit loans 584,000,000.00 250,000,000.00 Borrowing interest accrued 1,481,436.59 650,235.59

Total 1,830,688,787.95 766,438,037.89 Description of long-term loan classification:

Note 1: The composition of mortgage loans is as follows:

Borrowing units due within one year at the end of the period, collateral, long-term loan balance at the end of the period

Non-current liability balance

Fuxing Technology’s own land use

Fuxing Technology 17,303,678.54 23,206,815.12

Rights, factory buildings

Total 17,303,678.54 23,206,815.12 Note 2: The composition of guaranteed loans is as follows:

Borrowing units due within one year at the end of the period Guarantee units The balance of long-term borrowings at the end of the period

Balance of non-current liabilities The Company Hebang Nongke 298,000,000.00 1,000,000.00

The Company Hebang Group 355,000,000.00 40,000,000.00

Hebang Agricultural Science and Technology Company 40,000,000.00 5,000,000.00

Chongqing Wujun The Company 385,903,672.82 121,496,314.45

Fuxing Technology Wujun Solar 65,377,321.37

Hebang Phosphate Mine The Company 149,000,000.00

Total 1,227,903,672.82 232,873,635.82

Other notes:

□Applicable √Not applicable

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46. Bonds payable

(1).Bonds payable

√Applicable □Not applicable

Unit: Yuan Currency: RMB items Ending balance Beginning balance Convertible corporate bonds (Hebang convertible bonds) 4,278,635,022.35 4,169,656,332.92 Less: bonds payable due within one year

Total 4,278,635,022.35 4,169,656,332.92

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(2). Details of bonds payable: (excluding preference shares, perpetual bonds and other financial instruments classified as financial liabilities)

√Applicable □Not applicable

Unit: Yuan Currency: RMB Coupon Interest

Bond issuance Bond issuance Beginning of the period Current period Calculated at face value Premium and discount amortization Current period Current period Share conversion End of period

Face value (yuan) Rate Name of default date Date Term Amount Balance Issuance Interest withdrawal Sales Repayment Impact Balance

(%)

2024 -

4,600,00 4,169,65 15,331,8 107,957, 13,798,8 4,278,63 Hebang convertible bonds 100.00 Note October 28 6 years 512,126. No 0,000.00 6,332.92 85.00 821.30 90.00 5,022.35 days 87

-

4,600,00 4,169,65 15,331,8 107,957, 13,798,8 4,278,63Total / / / / 512,126. /

0,000.00 6,332.92 85.00 821.30 90.00 5,022.35

Note: The coupon rates of the convertible corporate bonds issued this time are 0.30% in the first year, 0.50% in the second year, 1.00% in the third year, 1.50% in the fourth year, 1.80% in the fifth year, and 2.00% in the sixth year. Interest is paid annually.

(3).Description of convertible corporate bonds

√Applicable □Not applicable

Item Share conversion conditions Share conversion time

The initial conversion price of the convertible bonds issued this time is 2.00 yuan/share, which is not less than the price disclosed in the prospectus. The conversion period of the convertible bonds issued this time is the first trading day after 6 months from the end of the issuance (November 1, 2024, the average trading price of the company's stock in the twenty trading days before the announcement date (if T+4 occurs within the twenty trading days)) (May 1, 2025, non-trading and state transfer)

If the stock price is adjusted due to ex-rights or ex-dividends, the average trading price on the trading day before the adjustment will be postponed) to the maturity date of the convertible bonds (October 27, 2030) (in the event of statutory debt relief)

Calculated based on the price adjusted for corresponding ex-rights and ex-dividends) and the company's stock price on the previous trading day. Holidays or rest days will be postponed to the first subsequent trading day, and interest payments during the postponement period will not be additional.

Average transaction price. interest).

Note: According to China Securities Regulatory Commission’s Zhengjian Permit [2024] No. 1233 “Reply on the Registration Approval for Sichuan Hebang Biotechnology Co., Ltd.’s Issuance of Convertible Corporate Bonds to Unspecified Objects”, the company issued 46 million convertible corporate bonds to unspecified objects on October 28, 2024, with a face value of 100.00 yuan each, a total issuance of 4.60 billion yuan, and a bond term of 6 years. As of December 31, 2025, the cumulative par value of "Hebang Convertible Bonds" converted into shares was 558,000.00 yuan, and the cumulative number of shares formed due to the conversion was 279,000.00 shares, accounting for 0.0032% of the company's total issued shares before the convertible bonds were converted into shares.

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report Equity Conversion Accounting Treatment and Judgment Basis

√Applicable □Not applicable

The company issued convertible corporate bonds with a face value of RMB 4,600,000,000 to unspecified objects on October 28, 2024, with an issuance fee (excluding tax) of RMB 24,599,056.60. , the present value of bond liabilities payable is calculated based on the actual interest rate and is included in the bonds payable, and the present value of equity is included in other equity instruments. The issuance costs are apportioned between the present value of liabilities and the present value of equity of the bonds. The fair value of the liability component after amortization is 4,149,196,965.24 yuan, and the fair value of the equity component is 364,221,097.83 yuan.

(4). Description of other financial instruments classified as financial liabilities

Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

□Applicable √Not applicable

Statement of changes in outstanding preferred stocks, perpetual bonds and other financial instruments at the end of the period

□Applicable √Not applicable

Explanation of the basis for classifying other financial instruments as financial liabilities

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

178/238 Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

47. Lease liabilities

√Applicable □Not applicable

Unit: Yuan Currency: RMB Item Closing balance Opening balance

Rent of houses and buildings 18,730,032.37 10,499,022.05 Rent of machinery and transportation equipment 3,225,417.92 4,025,522.62 Total 21,955,450.29 14,524,544.67 Other notes:

None

48. Long-term accounts payable

Item list

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

long-term payables

(1). Present long-term payables according to the nature of the payment

□Applicable √Not applicable

Special payables

(1). List special payables according to the nature of the payment

□Applicable √Not applicable

49. Long-term employee benefits payable

□Applicable √Not applicable

50. Estimated liabilities

√Applicable □Not applicable

Unit: Yuan Currency: RMB Item Ending balance Beginning balance Reason for formation

The company estimates that the sales cash rebate for some glass customers will be 4,102,525.28 based on the rebate if the sales volume reaches the standard.

policies that are expected to bear

Cash back payouts.

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

The company accrues 12,047,838.68 based on the mine's exploitable life, pit closure time, and the environmental and ecological restoration costs expected to occur when the pit is closed.

Gold’s mine environment recovery reserve fund, which will be based on the latest mine reclamation plan

Make an update.

Total 16,150,363.96 /

Other explanations, including important assumptions and estimation instructions related to important estimated liabilities:

None

51. Deferred income

Deferred income

√Applicable □Not applicable

Unit: Yuan Currency: RMB items Beginning balance Increase in the current period Decrease in the current period Ending balance Reasons for formation

Asset-related government subsidies received 130,165,835.17 12,600,000.00 -1,669,140.06 144,434,975.23

Government subsidies for advanced manufacturing

Enterprise value-added tax 719,896.52 719,896.52

super deduction

Total 130,165,835.17 13,319,896.52 -1,669,140.06 145,154,871.75 /

Other notes:

√Applicable □Not applicable

Government subsidy projects

New additions related to assets in the current period are included in the current period.

Government subsidy projects Beginning balance Other changes Ending balance/Amount of assistance with income Amount of other income

close

Diglyphosate project plan 12,018,750 1,281,999. 10,736,750.4

Asset-related subsidy funds .37 96 1

Guang'an 500,000 tons/year

60,000,000 60,000,000.0

Diglyphosate and supporting items Related to assets.00 0

project support funds

Air pollution control items 1,321,874.

293,750.04 1,028,124.82 Subsidy funds for asset-related projects 86

Wutongqiao ecological environment

12,600,000 12,600,000.0

Bureau environmental protection upgrade technical reform related to assets.00 0

Project subsidy

Government supports enterprises to develop

Development funds (10GW super 48,124,999 1,875,000. 50,000,000.0

Asset related high efficiency monocrystalline solar .98 02 0

silicon wafer project)

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

related to assets

New supplements in this period will be included in this period’s

Government subsidy projects Beginning balance Other changes Ending balance/Amount of assistance with income Amount of other income

close

The first batch of fixed assets

Investment bonus funds

7,497,085. 1,323,014.

(10GW ultra-high efficiency unit 8,820,100.00 related to assets

02 98

Crystalline solar silicon wafer project

item)

Basic supporting construction subsidy

Subsidy funds (10GW exceeding 1,203,124.

46,875.06 1,250,000.00 Asset-related high-efficiency monocrystalline solar energy 94

silicon wafer project)

130,165,83 12,600,000 1,575,750. 3,244,890. 144,434,975.

total

5.17 .00 00 06 23

52. Other non-current liabilities

□Applicable √Not applicable

53. Share capital

√Applicable □Not applicable

Unit: Yuan Currency: RMB Increase or decrease in this change (+, -)

Balance at the beginning of the period Issued Provident Fund Balance at the end of the period Bonus shares Other Subtotal

New shares Conversion

Total number of shares 8,831,250,228.00 279,000.00 279,000.00 8,831,529,228.00Other instructions:

Note: The 279,000 new shares in this period are due to the conversion of convertible bonds. For details, please see Note 7.46 Bonds Payable.

54. Other equity instruments

(1).Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

√Applicable □Not applicable

1. Convertible corporate bonds

According to the China Securities Regulatory Commission's Zhengjian License [2024] No. 1233 "Reply on the Registration of Sichuan Hebang Biotechnology Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Objects", the company issued 46 million convertible corporate bonds to unspecified objects on October 28, 2024, with a face value of 100.00 yuan each, a total issuance of 4.60 billion yuan, and a bond term of 6 years.

As approved by the Shanghai Stock Exchange's Self-Regulation Decision [2024] No. 153, the 4.60 billion yuan convertible corporate bonds issued by the company will be listed and traded on the Shanghai Stock Exchange from November 19, 2024. The bond abbreviation is "Hebang Convertible Bonds" and the bond code is "113691". The start and end dates of the convertible corporate bonds are from October 28, 2024 to October 27, 2030, and the start and end dates of the stock conversion are from May 1, 2025 to October 27, 2030.

(2). Statement of changes in outstanding preferred stocks, perpetual bonds and other financial instruments at the end of the period

√Applicable □Not applicable

Unit: Yuan Currency: RMB

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Beginning of the period Increase in the current period Decrease in the current period End of the period

gold issued

Book Price Book Price Book Price Book Price Financing Instrument Quantity Quantity Quantity

Value Value Value Value46,000 364,22 45,994

5,580. 44,181 364,176 Hebang convertible bonds ,000.0 1,097. ,420.0

00 .60 ,916.23 0 83 0

46,000 364,22 45,994

5,580. 44,181 364,176Total ,000.0 1,097. ,420.0

00 .60 ,916.23 0 83 0

Changes in other equity instruments during the current period, explanations of the reasons for the changes, and the basis for relevant accounting treatments:

√Applicable □Not applicable

Of the convertible corporate bonds "Hebang Convertible Bonds" issued by the company, 5,580 bonds were converted into company stocks in this period, and the corresponding other equity instruments of 44,181.60 yuan were transferred to capital reserve-share premium.

Other notes:

□Applicable √Not applicable

55. Capital reserve

√Applicable □Not applicable

Unit: Yuan Currency: RMB Items Beginning balance Increase in the current period Decrease in the current period Ending balance Capital premium (share capital

875,812,000.70 47,847,368.98 923,659,369.68 premium)

Other capital reserves 158,971,513.25 16,374,548.85 148,828,109.21 26,517,952.89 Total 1,034,783,513.95 64,221,917.83 148,828,109.21 950,177,322.57 Other explanations, including changes in increases and decreases in the current period and explanation of reasons for changes:

Increases and decreases in this period:

Item Reason for change Amount of change Description of change

Among the convertible corporate bonds "Hebang Convertible Bonds" issued by the company, 5,580 bonds were converted into company stocks in this period, and the number of shares converted was 279,000 shares. Book value of bonds corresponding to equity conversion

Equity premium Convertible bonds converted into shares RMB 2,851,052,512,100 minus the amount included in share capital of RMB 279,000, plus the amount transferred from other equity instruments of RMB 44,200, and the impact of deferred income tax of RMB 7,800, a total of RMB 285,100 was included in the equity premium.

The company's third phase employee stock ownership plan is unlocked, and the accumulated equity premium during the waiting period. Share-based payment expenses 47,562,263.76 The confirmed share-based payment expenses attributable to the parent company of RMB 47,562,300 were transferred to the equity premium.

Other capital reserves share-based payment expenses -47,562,263.76 Same as above.

The share-based payment expenses of equity settlement of RMB 15,908,800 recognized during the waiting period of the Company's third-phase employee stock ownership plan this year were included in other capital reserves; in addition, other capital reserves due to the balance sheet in the previous period were transferred back. Share-based payment expenses 14,954,311.25

The deferred income tax impact corresponding to the deductible temporary difference formed by the part where the daily closing price is higher than the market price of the stock on the date of grant is RMB 954,500.

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Subsidiary STK grants option confirmation shares to its senior executives

Subsidiary share branch

Other capital reserve 945,858.70 will be paid, and the company will include it in other capital public expenses in proportion to its equity interests.

accumulation.

Other associates: Burqin Yema, an associate, accrues special reserves, and the company uses other capital reserves 474,378.90

Changes in equity The proportion of equity interests is included in other capital reserves.

The company acquires some minority shareholders of its holding subsidiary Wujun Solar Energy

Acquisition of a small stake in a subsidiary, the acquisition price and other capital reserves of Wujun Solar calculated based on the shareholding ratio -101,265,845.45

The difference between the shares of several equity shares and net assets reduces other capital reserves by RMB 101.2658 million.

Total -84,606,191.38

56. Treasury stocks

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Opening balance Increase in the current period Decrease in the current period Ending balance Repurchase of shares 1,696,878,905.84 92,878,074.45 1,789,756,980.29

Total 1,696,878,905.84 92,878,074.45 1,789,756,980.29 Other explanations, including changes in increases and decreases in the current period and explanations of reasons for changes:

The increase in this period is due to the company's implementation of share repurchases.

57. Other comprehensive income

√Applicable □Not applicable

Unit: Yuan Currency: RMB Amount incurred in the current period

Less: previous period Less: previous period

Beginning of period Income for the period Included in other Included in other After-tax attribution Closing items Less: Income After-tax attribution

Balance Comprehensive income before tax Comprehensive income at minority shares Balance tax expense at parent company

Amount transferred in the current period Transferred in in the current period

Profit and loss Retained earnings

1. Can’t

Reclassify into - - -

3,995,01 4,786,21 1,851,98

Profit and loss 38,377,4 2,643,18 41,020,6

1.90 0.22 5.41

Other comprehensive income 64.26 3.73 47.99 profit

Among them: heavy

New measurement design 22,267.2 22,267.2 Defined benefit plan 7 7 plan changes

equity method

Can't download

profit and loss

He comprehensively collects

benefit

Other rights

• • -Yi Tool Investment 3,995,01 4,786,21 1,851,98

38,399,7 2,643,18 41,042,9 Fair value of capital 1.90 0.22 5.41

31.53 3.73 15.26 value change

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Enterprise since

body credit style

fair value of insurance

value change

2. General weight - - 1,096,66

-

Classification entry loss 29,523,7 28,427,0 1,836,77 5.29

30,263,8

Other benefits 19.25 53.96 2.68

26.64

Comprehensive income

Among them: right

633,228. 633,228. Other comprehensive income that can be transferred to profit or loss under the income method 94 94

Other debts

equity investment company

Allowable value change

move

Financial financing

Product weight classification

Included in other

Comprehensive income

amount of

Other debts

equity investment letter

Use impairment

Prepare

cash flow

quantity hedging reserve

Prepare

Foreign Currency - - -

30,156,9 1,729,89 Financial statement discount 30,263,8 28,427,0 1,836,77

48.19 4.23 Difference 26.64 53.96 2.68

• • • • -Other comprehensive 4,786,21 1,851,98

8,853,74 26,268,8 31,070,2 1,836,77 39,923,9 Total income 0.22 5.41

5.01 14.74 37.69 2.68 82.70

Other explanations, including adjustments to the initial recognition amount of the effective portion of cash flow hedging gains and losses converted into hedged items: None

58. Special reserves

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Opening balance Increase in the current period Decrease in the current period Ending balance Safety production expenses 20,530,307.87 50,803,297.53 57,027,816.06 14,305,789.34 Mine geological environment control

1,435,191.05 18,720.75 1,453,911.80

recovery fund

Mine land reclamation fee 1,821,829.11 102,804.75 1,924,633.86

Total 23,787,328.03 50,924,823.03 60,406,361.72 14,305,789.34 Other explanations, including changes in increases and decreases in the current period and explanations of reasons for changes:

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None

59. Surplus reserve

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Opening balance Increase in the current period Decrease in the current period Ending balance Statutory surplus reserve 600,422,803.20 478,621.03 600,901,424.23 Discretionary surplus reserve

reserve fund

Enterprise Development Fund

Others

Total 600,422,803.20 478,621.03 600,901,424.23 Description of surplus reserve, including changes in increases and decreases in the current period and explanation of reasons for changes:

The increase in surplus reserve in the current period is due to the disposal of other equity instrument investments in the current period. The change in fair value was included in other comprehensive income in the previous period and transferred to retained earnings in the current period.

60. Undistributed profits

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Projects in this issue Previous issue

Undistributed profits at the end of the previous period before adjustment 9,477,660,111.71 9,613,713,245.31 Total undistributed profits at the beginning of the period before adjustment (adjusted to increase

+, decrease -)

Adjusted opening undistributed profits 9,477,660,111.71 9,613,713,245.31 plus: Net attributable to owners of the parent company for the period -536,406,669.49

31,464,685.07 profit

4,307,589.19 previously included in other comprehensive income and transferred to retained earnings in the current period

3,597,289.86 savings income

Less: Appropriation of statutory surplus reserve 10,606,567.41 Appropriation of discretionary surplus reserve

Withdraw general risk reserve

Dividends payable on common shares 160,508,541.12

Dividends on common shares converted into equity capital

Undistributed profits at the end of the period 8,945,561,031.41 9,477,660,111.71 Adjustment details of undistributed profits at the beginning of the period:

1. Due to the retrospective adjustment of the "Accounting Standards for Business Enterprises" and its related new regulations, the undistributed profit at the beginning of the period was affected by RMB 0.

2. Due to changes in accounting policies, the undistributed profit at the beginning of the period was affected by RMB 0.

3. Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected by RMB 0.

4. The change in the scope of consolidation due to the same control affects the undistributed profit at the beginning of the period of 0 yuan.

5. The total impact of other adjustments on the undistributed profit at the beginning of the period is 0 yuan.

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61. Operating income and operating costs

(1). Operating income and operating costs

√Applicable □Not applicable

Unit: Yuan Currency: RMB Amount for the current period Amount for the previous period

Project

revenue cost revenue cost

Main business 7,076,030,910.51 6,274,006,194.52 8,412,366,723.35 7,759,218,890.92 Other businesses 111,479,922.04 85,484,278.27 135,109,826.78 121,455,970.83

Total 7,187,510,832.55 6,359,490,472.79 8,547,476,550.13 7,880,674,861.75

(2). Decomposition information of operating income and operating costs

√Applicable □Not applicable

Unit: Yuan Currency: RMB Total

Contract classification

Operating income Operating costs

Product type

Joint alkali products 1,129,100,633.20 1,403,349,983.17 Mineral products 428,921,715.74 142,112,370.48 Diglyphosate/glyphosate 2,513,478,481.32 2,334,008,852.03 Glass and photovoltaic products 1,236,131,131.28 1,230,353,575.39Methionine and by-products 1,884,731,489.06 1,443,962,935.99Biological pesticides 92,793,931.47 47,746,035.62Retail refined oil products 24,154,912.91 21,135,116.43 Other products (liquid ammonia, ammonium sulfate, natural

315,282,367.97 194,602,814.34 gas)

Other business 111,479,922.04 85,484,278.27 Internal offset -548,563,752.44 -543,265,488.93

Total 7,187,510,832.55 6,359,490,472.79 Classified by operating area

Domestic 6,231,698,151.69 5,467,232,559.26 Foreign 955,812,680.86 892,257,913.53

Total 7,187,510,832.55 6,359,490,472.79

Other notes:

□Applicable √Not applicable

(3).Description of performance obligations

√Applicable □Not applicable

Unit: Yuan Currency: RMB Performance of the contract Important company commitments The company’s pre-payment Whether the quality provided by the company is the main priority

Item Obligation Payment Slip Transferred goods will be returned to the customer within a certain period Quantity guarantee type and responsible person

Nature of intermediary payment Account’s payment Related obligations

Product delivery Advance payment

Industrial products to customers, or given

Physical product Yes No Legal warranty sales Asset control Customer one

transfer of rights to given credit

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During the customer period, pass

point. Pay cash

settlement or

Acceptance

Ticket settlement

Forget it.

Photovoltaic power station

EPC business

Main system

Supply photovoltaic electricity

Station general contracting according to progress

Business, belonging to settlement payment

Photovoltaic power station

Payment is made at a certain time, and the physical goods are not subject to statutory warranty. EPC business

Perform within the period and keep the warranty

performance liability.

service, monthly

Failure to follow the instructions

Appointment confirmed

Recognize income.

Total / / / / /

(4). Description of apportionment to remaining performance obligations

□Applicable √Not applicable

(5).Major contract changes or major transaction price adjustments

□Applicable √Not applicable

Other notes:

None

62. Taxes and surcharges

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Items Amount incurred in the current period Amount incurred in the previous period Urban construction tax 2,833,238.11 5,340,723.85 Education surcharge 1,607,107.49 2,506,741.39 Local education surcharge 1,071,405.00 1,671,136.17 Environmental protection tax 1,765,514.68 2,464,767.09 Resource tax 27,697,885.94 23,314,283.80 Property tax 13,721,981.70 11,899,892.19 Vehicle and vessel use tax 109,345.36 110,358.74 Land use tax 17,751,285.94 16,993,649.72 Stamp duty 4,181,402.83 4,910,939.12 Other taxes and fees 645.26 31,558.03

Total 70,739,812.31 69,244,050.10Other instructions:

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None

63. Sales expenses

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Employee compensation 42,453,361.78 36,274,386.83 Including: share-based payment expenses 2,936,999.77 5,873,999.53 Marketing fees, agency fees 6,065,045.33 10,440,386.69 Travel expenses 8,884,538.13 6,940,231.25 Transportation and handling fees 7,462,796.66 7,775,100.65 Warehousing fees 7,035,148.50 67,630.65 Depreciation fees 7,622,936.46 556,041.93 Business entertainment fees 1,548,990.71 1,794,495.24Office expenses 513,789.03 735,926.66Others 9,703,109.97 14,667,028.42

Total 91,289,716.57 79,251,228.32Other instructions:

None

64. Management expenses

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Employee compensation 189,839,523.46 200,550,926.28 Including: share-based payment expenses 10,590,284.26 21,274,569.99 Depreciation and amortization expenses 128,104,095.65 104,121,166.77 Intermediary agency fees 11,019,212.26 9,145,425.25 Repair fee 1,530,006.26 1,670,945.51 Property insurance premium 5,664,324.87 4,066,155.10 Rent 5,529,902.66 11,417,783.26 Self-generated power fund 1,000,317.90 2,089,142.43 Business entertainment expenses 4,357,124.69 7,926,378.84 Travel expenses 9,410,868.23 9,798,706.67 Office expenses 4,291,519.32 5,741,384.16 Vehicle usage expenses 5,803,194.30 7,560,700.56 Water and electricity expenses 3,060,553.18 4,427,080.60 Environmental protection expenses 7,645,555.71 19,714,436.95 Others 30,550,871.41 27,175,684.76

Total 407,807,069.90 415,405,917.14Other instructions:

None

65. Research and development expenses

√Applicable □Not applicable

Unit: Yuan Currency: RMB Item Amount for the current period Amount for the previous period

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Depreciation and amortization expenses 15,210,691.26 21,600,387.56 Consulting fees 492,981.53 2,107,560.29 Employee compensation 1,027,406.16 3,961,285.87 Travel expenses 764.29 450,490.26 Material consumption and other 581,784.28 2,506,172.09

Total 17,313,627.52 30,625,896.07Other instructions:

None

66. Financial expenses

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Interest expense 125,386,654.84 66,987,144.00 Less: Interest income 58,799,215.46 47,050,375.06 Exchange loss 31,490,432.28 17,572,078.58 Less: Exchange gain 13,371,652.97 22,422,817.83 Others -499,987.76 -104,881.60

Total 84,206,230.93 14,981,148.09Other instructions:

Note: The increase in financial expenses this year is mainly due to the company's increased investment scale in this period, the increase in bank loan interest expenses and the year-on-year decrease in interest capitalization; other decreases are mainly due to the increase in cash discounts obtained from suppliers.

67. Other income

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Classification by nature Amount incurred in the current period Amount incurred in the previous period

The value-added tax burden on pipeline transportation exceeds 3%

3,995,318.09 4,462,054.36 points will be refunded upon collection

Job stabilization subsidy, social security subsidy, job subsidy

2,168,674.59 1,551,208.51 subsidy, work-in-training subsidy

Diglyphosate project plan subsidy 1,281,999.96 1,281,999.96 Employment tax reduction for veterans and disabled people

3,665,529.74 612,744.80 free

Subsidy funds for air pollution control projects 293,750.04 293,750.04

Other sporadic project funds 59,126.92 160,640.70

Other handling fee refunds 655,792.23 777,964.57 Industrial Technology Research Institute start-up capital

(10GW ultra-efficient monocrystalline solar silicon 1,927,772.14 pieces project) Amortization

Government support for enterprise development funds (10GW

Ultra-efficient monocrystalline solar wafer project) 1,250,000.00 Amortization

The first batch of fixed asset investment award replenishment

Gold (10GW ultra-high efficiency monocrystalline solar silicon 882,010.00 pieces project) amortization

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Infrastructure supporting construction subsidy funds (10GW

Ultra-efficient monocrystalline solar wafer project) 31,250.04 amortization

Wutongqiao Economic and Information Bureau Industrial Application

13,000,000.00 698,582.00 Emergency and industrial development funds

Amortization of overseas tax subsidies 697,036.48 Luzhou City Longmatan District Finance Bureau 2023

The first batch of central and provincial ecological environment protection funds of 370,000.00

Luzhou Longmatan District Economy and Informatization

Bureau’s third batch of provincial industrial development special funds of 300,000.00 in 2022

Leshan City Wutongqiao District Finance Bureau 2022

The second and third batch of provincial industrial development in 2018 is 300,000.00, incentive funds for hard work and development.

Finance Bureau of Wutongqiao District, Leshan City 2018

279,272.00 Provincial Special Fund for Foreign Economic and Trade Development

Accelerate industrial transformation and green development

250,000.00 policy funds

Total 25,120,191.57 16,126,285.60Other instructions:

None

68. Investment income

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Income from long-term equity investments accounted for using the equity method -3,508,432.23 -7,065,474.10 Investment income from disposal of long-term equity investments

Other equity instrument investments acquired during the holding period

Dividend income of 846,347.01

Measured at fair value with changes included in the current period

Profit and loss Investment income obtained during the holding period of financial assets 1,120,000.00 960,000.00

Investment income from disposal of other financial assets -2,616,679.04 -411,173.26

Total -5,005,111.27 -5,670,300.35

Other notes:

Note: In this period, a dividend of RMB 1,120,000.00 was received from Zhongming Environment.

69. Net exposure hedging income

□Applicable √Not applicable

70. Income from changes in fair value

□Applicable √Not applicable

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71. Credit impairment losses

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Bad debt losses on notes receivable

Bad debt losses on accounts receivable -7,536,196.55 -536,362.41 Bad debt losses on other receivables -4,570,753.72 -2,153,097.81

Total -12,106,950.27 -2,689,460.22Other instructions:

None

72. Asset impairment losses

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

1. Impairment losses on contract assets -879,391.74 -71,273.39

2. Inventory depreciation losses and contract performance costs

-371,650,920.72 -127,950,018.10 Impairment loss

3. Impairment losses on long-term equity investments

4. Impairment losses on investment real estate

5. Impairment losses on fixed assets -202,839,697.69

6. Impairment losses of engineering materials

7. Impairment losses on projects under construction -42,790,463.80

8. Impairment losses on productive biological assets

9. Impairment losses on oil and gas assets

10. Impairment losses on intangible assets -84,751,522.71

11. Goodwill impairment loss -60,250,465.25

12. Impairment loss of right-of-use assets -10,269.92

Total -763,172,731.83 -128,021,291.49Other instructions:

None

73. Income from asset disposal

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Net income from the disposal of fixed assets 30,824.22 411,379.72 Net income from the disposal of intangible assets 1,233,568.70

Net income from disposal of right-of-use assets -5,625,828.52 757,377.17

Total -4,361,435.60 1,168,756.89Other instructions:

None

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

74. Non-operating income

Non-operating income

√Applicable □Not applicable

Unit: Yuan Currency: RMB Included in non-recurring losses for the current period Amount incurred in the current period Amount incurred in the previous period

amount of profit

Damage report of non-current assets

37,508.46 37,508.46 Waste profits

Compensation income 309,273.74 58,634.73 309,273.74 Accounts payable that do not need to be paid

442,807.37 975,621.34 442,807.37 item tail difference

Others 22,405.78 37,937.30 22,405.78

Total 811,995.35 1,072,193.37 811,995.35

Other notes:

□Applicable √Not applicable

75. Non-operating expenses

√Applicable □Not applicable

Unit: Yuan Currency: RMB Included in non-recurring losses for the current period Amount incurred in the current period Amount incurred in the previous period

amount of profit

Loss on disposal of non-current assets

13,541,880.89 131,511.32 13,541,880.89 Total loss

Among them: Fixed Assets Department

13,541,880.89 131,511.32 13,541,880.89 Losses

Late payment fees 13,377,140.39 13,377,140.39 External donations 1,182,869.59 1,035,341.18 1,182,869.59 Carbon emission rights expenses 327,800.99 3,385,709.20

Others 362,573.76 410,632.82 362,573.76

Total 28,792,265.62 4,963,194.52 28,464,464.63Other instructions:

None

76. Income tax expenses

(1). Income tax expense schedule

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Current income tax expense 117,437,411.58 74,155,295.26 Deferred income tax expense -35,615,185.21 -69,094,247.39 Total 81,822,226.37 5,061,047.87

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

(2).Accounting profit and income tax expense adjustment process

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount incurred in this period

Total profit -630,842,405.14 Income tax expenses calculated at statutory/applicable tax rates -94,626,360.77 Impact of different tax rates applicable to subsidiaries -2,595,240.76 Impact of adjusting income tax in previous periods 57,689,393.85 Impact of non-taxable income -707,999.19 Impact of non-deductible costs, expenses and losses 13,269,303.81 Effect of using deductible losses of unrecognized deferred income tax assets in the previous period -1,317,571.23 losses

The impact of deductible temporary 110,328,636.58 differences or deductible losses of deferred income tax assets not recognized in the current period

Transfer of deductible losses from deferred income tax assets recognized in the previous period

The impact of returning

Impact of additional deductible expenses -217,935.92 Income tax expense 81,822,226.37

Other notes:

□Applicable √Not applicable

77. Other comprehensive income

√Applicable □Not applicable

See Note 7, 57 for details.

78. Cash flow statement items

(1). Cash related to operating activities

Other cash received related to operating activities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Government subsidies received 31,773,920.09 65,300,412.58 Interest income 55,326,867.30 47,050,375.06 Deposits, security deposits and other income 28,158,498.66 49,981,885.70

Total 115,259,286.05 162,332,673.34 Description of other cash received related to operating activities:

None

Other cash paid related to operating activities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Cash paid for company expenses 113,312,110.92 104,734,772.58 Carbon emission rights expenditure 490,473.79 3,385,709.20

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Donation expenses 1,182,869.59 1,035,341.18 Late payment fees 13,377,140.39

Other deposits, current accounts, etc. 23,488,502.60 43,718,278.74

Total 151,851,097.29 152,874,101.70 Description of other cash paid related to operating activities:

None

(2).Cash related to investing activities

Cash received in connection with significant investing activities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Cash recovered from disposal of investments in other equity instruments 77,786,210.22 27,523,493.85 Other income from margin payments 68,241,070.97 11,000,000.00

Total 146,027,281.19 38,523,493.85 Description of cash received related to important investment activities

None

Cash payments related to significant investment activities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Yellow phosphorus production capacity indicator 185,290,000.00

Xinjiang metal mine transfer gold 101,883,900.00

Total 287,173,900.00

Description of cash payments related to significant investment activities

None

Other cash received related to investing activities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Interest on funds raised from convertible bonds 47,223,508.28 2,522,653.78 Engineering project bidding information fees, deposits, etc. 68,241,070.97 11,020,576.93

Total 115,464,579.25 13,543,230.71 Description of other cash received related to investing activities:

None

Other cash paid related to investing activities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Loans to associate BCT 127,244,855.11

Deposits for mining projects and engineering projects, etc. 59,608,600.00 13,375,342.39 Land deposits for Indonesian projects 15,384,558.79 Mine geological environment management and restoration fund 462,098.60 3,924,605.45

Total 187,315,553.71 32,684,506.63 Description of other cash paid related to investment activities:

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

None

(3).Cash related to financing activities

Other cash received related to financing activities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Acceptance bills and letter of credit deposits 73,931,506.57

Treasury stock transfer amount 159,130,243.50

Total 73,931,506.57 159,130,243.50 Description of other cash received related to financing activities:

None

Other cash payments related to financing activities

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount for the current period Amount for the previous period

Acceptance bills and letter of credit deposits 56,421,129.21 Rent paid 12,721,248.82 10,230,961.88 Cash paid to repurchase stocks 92,878,074.45 1,196,788,701.29 Other financing expenses paid 120,000.00 1,245,283.02 Payment for the acquisition of Wujun Solar’s minority shareholders’ equity 222,277,534.00 290,426,754.00

Total 327,996,857.27 1,555,112,829.40 Description of other cash paid related to financing activities:

None

Changes in various liabilities arising from financing activities

√Applicable □Not applicable

Unit: Yuan Currency: RMB Increase in this period Decrease in this period

Item Beginning balance Closing balance

Cash changes Non-cash changes Cash changes Non-cash changes

Short-term borrowings 2,353,237,18 2,577,376 68,645,124. 2,691,200, 2,308,058

9.55,713.76 06 219.10,808.27 Dividends payable

Bonds payable 4,169,656,33 122,777,579 13,798,890 4,278,635

2.92 .43 .00 ,022.35 Long-term borrowings (including 1,323,500 53,562,655. 798,508,94 2,091,002

1,512,448,76

Non-current due within the year,000.00 98 5.52,470.69

0.23

(live liabilities)

Lease liabilities (including one) 28,309,876. 12,721,248 36,080,69

20,492,067.6

Non-current liabilities due within the year 25.82 5.08)

8,055,834,35 3,900,876 273,295,235 3,516,229, 8,713,776 total

0.35 ,713.76 .72 303.44 ,996.39

(4).Explanation on presenting cash flow in net amount

□Applicable √Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

(5). Major activities and financial activities that do not involve current cash receipts and expenditures but affect the company's financial status or may affect the company's cash flow in the future.

business impact

□Applicable √Not applicable

79. Supplementary information for cash flow statement

(1). Supplementary information for cash flow statement

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Supplementary information Amount for the current period Amount for the previous period

1. Reconcile net profit to cash flow from operating activities:

Net profit -712,664,631.51 -70,744,609.93 Plus: asset impairment provision 763,172,731.83 128,021,291.49 Credit impairment loss 12,106,950.27 2,689,460.22 Fixed asset depreciation, oil and gas asset depreciation, production

930,216,134.69 920,635,825.49 Depreciation of productive biological assets

Amortization of right-of-use assets 15,372,249.94 11,802,137.92 Amortization of intangible assets 66,863,984.74 54,748,148.57 Amortization of long-term prepaid expenses 392,452.80 5,000,881.64 Disposal of fixed assets, intangible assets and other long-term

Loss of future assets (income is filled in with "-" in columns 4,361,435.60 -1,168,756.89)

Loss on scrapping of fixed assets (income is represented by “-”

13,504,372.43 (Fill in No. 131,511.32)

Loss from changes in fair value (income is represented by “-”

(Fill in the number)

Financial expenses (income is listed with "-") 143,505,434.15 62,136,404.75 Investment losses (income is listed with "-") 5,005,111.27 5,670,300.35 Decrease in deferred income tax assets (increase is marked with "-")

-23,269,744.90 -74,035,323.03 (Fill in “-”)

Deferred tax liabilities increased (decreased by

-12,345,440.31 4,941,075.64 (Fill in “-”)

Decrease in inventory (increase filled in with "-"

304,245,999.79 -240,336,248.60 columns)

Decrease in operating receivables (increase by

540,438,280.37 -53,392,819.13 (Fill in “-”)

Increase in operating payables (decrease by

-990,581,733.63 -319,993,941.36 Fill in the "-" number)

Others 15,913,023.62 31,826,048.72 Net cash flow generated from operating activities 1,076,236,611.15 467,931,387.17 2. Major investing and financing activities that do not involve cash receipts and payments:

debt to capital

Convertible corporate bonds due within one year

Financing leased fixed assets

3. Net changes in cash and cash equivalents:

Closing balance of cash 6,684,196,816.01 6,851,563,060.79 Less: Opening balance of cash 6,851,563,060.79 2,904,831,842.08

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Add: Closing balance of cash equivalents

Less: Opening balance of cash equivalents

Net increase in cash and cash equivalents -167,366,244.78 3,946,731,218.71

(2). Net cash paid in the current period to acquire subsidiaries

□Applicable √Not applicable

(3). Net cash received from disposal of subsidiaries in the current period

□Applicable √Not applicable

(4). Composition of cash and cash equivalents

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Ending balance Beginning balance

1. Cash 6,684,196,816.01 6,851,563,060.79 Including: Cash on hand 3,163,137.79 2,479,621.54 Bank deposits that can be used for payment at any time 6,680,993,375.11 6,818,750,884.45 Other currencies that can be used for payment at any time

40,303.11 30,332,554.80 funds

Deposit central bank available for payments

payment

Deposit funds from other banks

Funds placed with other banks

2. Cash equivalents

Including: Bond investments due within three months

3. Balance of cash and cash equivalents at the end of the period 6,684,196,816.01 6,851,563,060.79 Among them: the parent company or subsidiaries within the group use

With restricted cash and cash equivalents

(5). Situations where the scope of use is limited but still presented as cash and cash equivalents

□Applicable √Not applicable

(6). Monetary funds that are not cash and cash equivalents

√Applicable □Not applicable

Unit: Yuan Currency: RMB Item Ending balance Beginning balance Reason

Used to issue letters of credit, acceptances and other monetary funds 14,778,236.47 147,859,811.40

Invoice, warranty letter deposit; payment mine

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Mountain land reclamation deposit, mining land

Qualitative Environmental Management Restoration Fund Deposits. Total 14,778,236.47 147,859,811.40 /

Other notes:

□Applicable √Not applicable

80. Notes on items in the statement of changes in owners’ equity

Explain the names of "other" items that were adjusted to the closing balance of the previous year and the amount of adjustment, etc.:

□Applicable √Not applicable

81. Foreign currency monetary items

(1). Foreign currency monetary items

√Applicable □Not applicable

Unit: yuan Conversion into RMB items at the end of the period Foreign currency balance at the end of the period Conversion exchange rate

balance

Monetary funds

Among them: US dollars 210,212,862.09 7.0288 1,477,544,165.04 Hong Kong dollars 5,346,382.56 0.9032 4,828,959.66 Australian dollars 954,456.40 4.6892 4,475,636.95 Indonesian rupiah 1,777,255,948.15 0.0004 740,316.64 Accounts receivable

Including: US dollars 5,723,981.42 7.0288 40,232,720.64 Australian dollars 3,317,599.70 4.6892 15,556,888.51 Other receivables

Among them: US dollars 9,895.89 7.0288 69,556.23 Australian dollars 200,000.00 4.6892 937,840.00 Hong Kong dollars 2,547,113.80 0.9032 2,300,604.13 Indonesian rupiah 1,899,928,264.61 0.0004 791,415.84 Long-term receivables:

Including: USD 15,902,189.05 7.0288 111,773,306.36 Other equity instrument investments:

Including: Australian dollars 7,479,881.21 4.6892 35,074,658.95 Accounts payable

US dollars 4,648,158.13 7.0288 32,670,973.86 Australian dollars 112,495.39 4.6892 527,513.39 Hong Kong dollars 232,574.12 0.9032 210,065.60 Employee benefits payable

Among them: US dollars 922,901.39 7.0288 6,486,889.29 Australian dollars 49,023.09 4.6892 229,879.08 Hong Kong dollars 2,076,640.11 0.9032 1,875,662.88 Indonesian rupiah 8,560,477.13 0.0004 3,565.87 Taxes payable

Among them: US dollars 545,956.00 7.0288 3,837,415.53 Australian dollars 59,129.88 4.6892 277,271.83

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Indonesian Rupiah 58,591,616.26 0.0004 24,406.36 Other payables

Australian dollar 720.64 4.6892 3,379.23Other instructions:

The company's overseas operating entities are subsidiaries S.T.K., Hebang Investment (Hong Kong), PPI, PPR, Indonesia Hebang. S.T.K.'s main place of business is Israel, and its accounting currency is the US dollar. The main place of business of Hebang Investment (Hong Kong) is Hong Kong, China, and its accounting standard currency is Hong Kong dollars. The main place of business for PPI and PPR is Australia, and the accounting standard currency is the Australian dollar. Indonesia Hebang's main place of business is Indonesia, and its accounting standard currency is Indonesian rupiah.

(2). Description of overseas operating entities, including for important overseas operating entities, their main overseas operating place, accounting standard currency and basis for selection should be disclosed. If the accounting standard currency changes, the reasons should also be disclosed.

□Applicable √Not applicable

82. Leasing

(1). As a lessee

√Applicable □Not applicable

Variable lease payments not included in the measurement of lease liabilities

□Applicable √Not applicable

Simplified treatment of short-term leases or lease payments for low-value assets

√Applicable □Not applicable

The simplified treatment of short-term leases or lease fees for low-value assets is 5,529,902.66 yuan.

Sale and leaseback transactions and basis for judgment

□Applicable √Not applicable

The total cash outflow related to leasing is 18,251,151.48 (unit: yuan, currency: RMB)

(2). As a lessor

Operating lease as lessor

√Applicable □Not applicable

Unit: Yuan Currency: RMB Including: Available items not included in lease receipts Lease income

Income related to variable lease payments Lease income from buildings, equipment, etc. 1,582,770.60

Total 1,582,770.60

Finance lease as lessor

□Applicable √Not applicable

Reconciliation of undiscounted lease receipts and net lease investment

□Applicable √Not applicable

Undiscounted lease receipts over the next five years

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

□Applicable √Not applicable

(3). Recognize financial lease sales profits and losses as a manufacturer or distributor

□Applicable √Not applicable

Other notes:

None

83. Data resources

□Applicable √Not applicable

84. Others

□Applicable √Not applicable

8. R&D expenditures

1. Development expenditures on R&D projects that meet capitalization conditions

√Applicable □Not applicable

Unit: Yuan Currency: RMB

The increase in the current period and the decrease in the current period are recognized at the beginning of the period as an item at the end of the period and transferred internally to the current period.

Balance Other intangible assets Balance payment expenses Period profit and loss

produce

Diglyphosate 160,82

43,572, 204,393 production process opened 0,951.

405.58,357.36 hair 78

New Catalysis 12,433

14,722, 27,156, agent research and development projects, 962.2

703.38 665.66 mesh 8

biopesticides

7,081,7 7,081,7

Overseas registration

71.06 71.06

Certification

173,25

65,376, 7,081,7 231,550Total 4,914.

880.02 71.06 ,023.02

Significant Capitalized R&D Projects

√Applicable □Not applicable

Estimated economic benefits Projects to be capitalized R&D progress Estimated completion time Specific basis

Production method: Experimental equipment has been completed at this time. Used in bisglyphosate

Diglyphosate production equipment has been assembled and is in the process of producing up to 500,000 tons of bisglyphosate. The technical plan for increasing production has been determined.

June 2022 process development mid-term production experiment phosphine project completion product output efficiency, date stage reduce production costs

Impairment provision for development expenditures

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

□Applicable √Not applicable

Other notes:

None

2. Important outsourced research projects

□Applicable √Not applicable

3. List according to nature of expenses

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount incurred in the current period Amount incurred in the previous period Depreciation and amortization expenses 15,210,691.26 21,600,387.56 Consulting fees 3,360,005.87 3,776,420.02 Employee compensation 37,881,860.67 42,688,681.62 Travel expenses 764.29 450,490.26 Material consumption and others 26,237,185.45 53,194,112.94

Total 82,690,507.54 121,710,092.40 Including: expensed R&D expenditures 17,313,627.52 30,625,896.07

Capitalized R&D expenditures 65,376,880.02 91,084,196.33Other explanations:

None

9. Changes in consolidation scope

1. Merger of enterprises not under common control

□Applicable √Not applicable

2. Merger of enterprises under common control

□Applicable √Not applicable

3. Reverse purchase

□Applicable √Not applicable

4. Disposal of subsidiaries

Are there any transactions or events that result in the loss of control of subsidiaries during this period?

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Is there any situation where investments in subsidiaries are disposed of step by step through multiple transactions and control is lost in the current period?

□Applicable √Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Other notes:

□Applicable √Not applicable

5. Changes in the scope of consolidation due to other reasons

Explain the changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries, liquidation of subsidiaries, etc.) and their related situations: √ Applicable □ Not applicable

This year, the company established a wholly-owned subsidiary, Leshan Qianwei Hebang Mining Co., Ltd., which will be included in the consolidated statements from the date of establishment in April 2025.

This year, the company established a wholly-owned subsidiary, Leshan Jingyan Hebang Mining Co., Ltd., which will be included in the consolidated statements from the date of establishment in April 2025.

This year, the company established a wholly-owned subsidiary, Xinjiang Hebangkapan Mining Co., Ltd., which will be included in the consolidated statements from the date of establishment in April 2025.

This year, the company established a wholly-owned subsidiary, Xinjiang Hebanniya Mining Co., Ltd., which will be included in the consolidated statements from the date of establishment in April 2025.

This year, the company established a holding subsidiary, Inner Mongolia Naiman Banner Hebang New Technology Industrial Co., Ltd., which will be included in the scope of consolidated statements from the date of establishment in March 2025; the company was canceled in August 2025, and will no longer be included in the scope of consolidated statements from the date of cancellation. This year, the company established a wholly-owned subsidiary Huili Hebangshangwuji Mining Co., Ltd., which will be included in the consolidated statements from the date of establishment in July 2025.

This year, the company established a wholly-owned subsidiary, Leshan Hebang Fire Technology Co., Ltd., which will be included in the consolidated statements from the date of establishment in August 2025.

This year, the company established a wholly-owned subsidiary, Mianning Hebang Mining Co., Ltd., which will be included in the consolidated statements from the date of establishment in October 2025.

This year, the company established a wholly-owned subsidiary, Sichuan Hebang Mining Group Co., Ltd., which will be included in the consolidated statements from the date of establishment in November 2025.

This year, the company established a wholly-owned subsidiary, Leshan Zhichuang Chemical Machinery Co., Ltd., which will be included in the consolidated statements from the date of establishment in December 2025.

6. Others

□Applicable √Not applicable

10. Interests in other entities

1. Interests in subsidiaries

(1).Construction of enterprise groups

√Applicable □Not applicable

Unit: Yuan Currency: RMB Subsidiary Main business Shareholding ratio (%) Obtained

Registered capital Place of registration Nature of business

name place direct indirect way

Leshan City 5

Sichuan Hebang

Leshan City 5 6,000.00 Tongqiao District Cow

Salt Mine Limited Salt Mining 100 Establishment

Tongqiao District Wanyuanhua Town Miaba

company

village

Luzhou City Dragon

Sichuan Wujun

45,261.00 Matan District Fu Non-identical Control of Light Energy Co., Ltd. Luzhou City Glass Manufacturing 99.75

Enterprise Merger Co., Ltd., Section 2, Wanyuanxing Road, Section 2

No.

Luzhou City Dragon

Luzhou Wujun 5,000.00

Luzhou City Matan District Mining Construction Services 99.75 Establishment of Photovoltaic Project Ten Thousand Yuan

No. 98 Lin Street

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Limited construction

company

Sichuan Wujun

Luzhou City Dragon

Electric power engineering 5,000.00 Not constituted as an enterprise

Luzhou City Matan District Mining Construction Services 99.75 Construction Co., Ltd. 10,000 yuan Merger Acquisition

No. 98 Lin Street

company

Sichuan Wujun

Luzhou City Dragon

Electric power engineering 2,000.00 Not constituted as an enterprise

Luzhou City Matan District Procurement Architectural Services 99.75 Design Co., Ltd. 10,000 Yuan Merger Acquisition

No. 98 Lin Street

company

Wu Jun Chongqing Chongqing City Jiang

Chongqing Jiang 100,000.0 Glass, photovoltaic manufacturing

Light Energy Limited Baisha, Tianjin District 99.75 Established

Jin District 00,000 yuan

Company Industrial Park

Fuxing, Anhui

New Energy Department 45,500.00 Fuyang Economic

Fuyang City Photovoltaic Manufacturing 58.18 Establishment of Technology Co., Ltd. 10,000 Yuan Development Zone

Division

Leshan Hebang Leshan City Five

Leshan City 5 49,200.00 Non-identical Control Agricultural Science and Technology Tongqiao District Cattle Chemical Industry 100

Tongqiao District Ten thousand yuan under Enterprise Merger Co., Ltd. Huazhen

Guang'an Bimei

Da Biotech 100,000.0 Guang’an City Economic

Guang'an Chemical Industry 100 Technology Co., Ltd. 00,000 Yuan Development Zone

Division

Guang'an Bimei

10,000.00 Guang’an City

Da Salt Mine has 100 establishments in Guang'an City for salt mining.

Wanyuan'an District

Ltd.

Guang'an Xinmei

2,000.00 Guang’an City Economic

Water Affairs Co., Ltd. Guang'an City Chemical Industry 100 was established

Ten Thousand Yuan Development Zone

company

Leshan Hebang Leshan City Five

New Materials Department Leshan City 5 50,000.00 Tongqiao District Ox New Materials Research and Development

100 Establishment of Technology Co., Ltd. Sand board manufacturing in Wanyuanhua Town, Tongqiao District

Sitancun

S.T.K.Sto Europe, Asia

100,000.0

ckton Asia, South America, Israel

0 NIS Biopesticides 51 Buying Group America, North America Aviv

er

Ltd.zhou

Leshan Yongjiang River

Leshan City V 16,010.00 Leshan City V Natural Gas Pipeline Non-Common Control Industrial Co., Ltd. 100

Tongqiao District Wan Yuan Tongqiao District Transportation and Transfer Company Merger Company

Leshan City 5

Tongqiao District Leshan City 5 7.100 million Leshan City 5 Not under common control

Refined oil sales 100jiang gas station Tongqiao District Yuantongqiao District under Enterprise Merger Co., Ltd.

Leshan Runsen

Compressed Natural Leshan City 5 5 million Leshan City 5 Not under common control

Natural Gas Sales 100 Gas Co., Ltd. Tongqiao District Yuantongqiao District Business Merger Department

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

PAN

Australia

PACIFIC 10,000.00

Australia North Ravel Trade 100 Establishment INDUSTRIE AUD

Dayton

S PTY LTD

Jianwei Hebang Jianwei County Stone

Leshan City Jian 7,000.00 Shuncheng Salt Industry not under common control Xizhen Shima Salt production 100

For County Ten Thousand Yuan Under Enterprise Merger Co., Ltd. Village Group

Zigonghebang

10,000.00 Zigong City Edge

Chemical Industry Co., Ltd. Zigong City Chemical Industry 100 Established

Wanyuantan Industrial Park

company

PAN Overseas mineral assets PACIFIC Australia 10,000.00 Source development and search

Australia 100 Established RESOURCES Melbourne Australian Dollar Looking for mineral investment PTY LTD project

PT HEBANG

East Java, Indonesia 2,000,000

BIOTECHNO INDONESIA

Surabaya Province .000000 Indonesia Chemical Industry 100 Establishment of LOGY Asia

City Rs.

INDONESIA

Inner Mongolia Nai

Manqi and Bang

Inner Mongolia Tong Inner Mongolia Tong Establishment (Injection of new technology and implementation 300,000 yuan Mining 100

Liao City Liao City Sales Co., Ltd.

Division

Leshan City Jian

For Hebang Mine Leshan City Jian 1,000.00 Leshan City Jian

Salt mining 100 yuan to establish a limited company for the county 10,000 yuan for the county

Division

Leshan Market

Yanhebang Mine Leshan City 1,000.00 Leshan City

Salt Mining 100 Establishment Co., Ltd. Yan County Wanyuan Yan County

Division

Leshan Hebang

Leshan City Five 1,000.00 Leshan City Five

Fire Technology Services 100 Establishment

Tongqiao District Wanyuan Tongqiao District

Ltd.

Leshan City Intelligence

Chuang Chemical Machinery Leshan City 5 2,000.00 Leshan City 5

Machinery Manufacturing 100 Establishment of Machinery Co., Ltd. Tongqiao District Wanyuan Tongqiao District

Division

Sichuan Hebang

Leshan City Five 200,000.0 Leshan City Five

Mining Group Mining Investment 100 Establishment

Tongqiao District 00,000 yuan Tongqiao District

Ltd.

Sichuan Hebang Mabian Yi Nationality

Leshan City Horse 28,600.00

Phosphate Mine Co., Ltd. Autonomous County Tobacco Mining 100 Establishment

Border County 10,000 yuan

Company Fengxiang

Sichuan Hebang

Sichuan Province Ya

Liujiashan Phosphorus Ya'an City Han 50,000.00

Anshi Hanyuan Mining 100 Established Mining Co., Ltd. Yuan County Wan

Fulin Town, County

company

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Xinjiang Hebang

Xinjiang Ak 20,000.00 Xinjiang Ak

Kudi Mining Mining 100 Establishment

Tao County Wanyuan Tao County

Ltd.

Xinjiang Hebang

Xinjiang Ak 20,000.00 Xinjiang Ak

Tamu Mining Mining 100 Establishment

Tao County Wanyuan Tao County

Ltd.

Leshan Hebang

Leshan City 5 1,000.00 Leshan City 5 Civil engineering and mining project 100 Establishment

Tongqiao District Wanyuan Tongqiao District Construction Industry Co., Ltd.

Xinjiang Hebang

Xinjiang Minfeng 3,000.00 Xinjiang Minfeng

Kappa Mining Mining 100 Establishment

County Wanyuan County

Ltd.

Xinjiang Hebang

Xinjiang Minfeng 13,000.00 Xinjiang Minfeng

Niya Mining Mining 100 Establishment

County Wanyuan County

Ltd.

Huili Shihe

Bangshang House Foundation Liangshan Prefectural Association 6,000.00 Liangshan Prefectural Association

Mining 100 Establishment of Mining Co., Ltd. Municipality Wan Yuan Municipality

company

mianninghebang

Liangshan Prefecture Crown 10,000.00 Liangshan Prefecture Crown

Mining Limited Mining 100 Establishment

Ning County Wanyuan Ning County

company

Hong KongThree

Hebang Biotechnology

Garden

(Hong Kong) Hong Kong Special 1,000.00

Road, invest 100 million Hong Kong dollars to establish an investment limited administrative area

ICBC

company

Tower

Explanation on the difference between the proportion of shareholding in subsidiaries and the proportion of voting rights:

None

Basis for holding half or less of the voting rights but still controlling the invested unit, and holding more than half of the voting rights but not controlling the invested unit:

None

For important structured entities included in the scope of consolidation, the basis for control: None

Basis for determining whether a company is agent or principal:

None

Other notes:

None

(2).Important non-wholly owned subsidiaries

√Applicable □Not applicable

Unit: Yuan Currency: RMB Shareholdings held by minority shareholders Attributable to minority in this period Attributable to minority shareholders in this period Name of subsidiary with minority shareholders' rights at the end of the period

Proportion Shareholders’ profit and loss Balance of dividends declared for distribution Wujun Solar 0.25% -1,172,842.57 0.00 4,992,579.65

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Explanation on the difference between the shareholding ratio of minority shareholders of subsidiaries and the voting rights ratio:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

(3).Main financial information of important non-wholly owned subsidiaries

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Ending balance Beginning balance

Subsidiaries

Current Non-Current Assets Current Non-Current Liabilities Current Non-Current Assets Current Non-Current Liabilities Name

Assets Assets Total Liabilities Liabilities Total Assets Assets Total Liabilities Liabilities Total 3,423 4,341 1,853 2,344 1,510 3,870 5,381 2,199 2,755

918,2 490,6 555,1

Wu Jun ,385, ,680, ,970, ,648, ,812, ,363, ,176, ,872, ,001,

95,19 77,70 29,31

Light energy 124.2 317.6 762.0 463.0 517.1 757.3 274.5 049.2 365.2 3.48 1.02 5.97

1 9 3 5 9 9 8 8 5

Amount for the current period Amount for the previous period

Subsidiary name Operating income Comprehensive income Operating activities Operating income Comprehensive income Net profit from operating activities Net profit

Total Income Cash Flow Total Income Cash Flow

1,240,7 - - 114,999,0 2,248,0 - - -Wu Jun Light Energy 70,462. 469,137 469,137, 70.48 47,287. 118,554 118,554, 359,526,0

06,028.58 028.58 91,010.77 010.77 90.15Other instructions:

None

(4).Significant restrictions on the use of enterprise group assets and settlement of enterprise group debts

□Applicable √Not applicable

(5). Financial support or other support provided to structured entities included in the scope of consolidated financial statements

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

2. Transactions in which the ownership share of the subsidiary changes and the subsidiary is still controlled

√Applicable □Not applicable

(1). Description of changes in owner’s equity share of subsidiaries

√Applicable □Not applicable

In January 2025, the company signed an equity transfer agreement with some minority shareholders of its holding subsidiary Sichuan Wujun Solar Co., Ltd. (hereinafter referred to as "Wujun Solar"), and purchased 4.91% of Wujun Solar's shares for a total of RMB 222 million. In 2025, the above-mentioned equity transfers will be completed one after another, and all equity transfer payments will be completed.

After the above-mentioned equity change, the company's shareholding ratio in Wujun Solar changed from 94.84% to 99.75%, and it still maintains control.

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(2). The impact of the transaction on minority shareholders’ equity and owner’s equity attributable to the parent company

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Wu Jun light energy

Purchase cost/disposal consideration

--Cash 222,277,534.00 --Fair value of non-cash assets

Total purchase cost/disposal consideration 222,277,534.00 Less: Net asset share of subsidiaries calculated based on the proportion of equity acquired/disposed of 121,011,688.55

Difference 101,265,845.45 including: Adjusted capital reserve 101,265,845.45 Adjusted surplus reserve

Adjust undistributed profits

Other notes:

□Applicable √Not applicable

3. Interests in joint ventures or associated enterprises

√Applicable □Not applicable

(1).Important joint ventures or associates

√Applicable □Not applicable

joint venture or joint venture or associate

Shareholding ratio (%)

Name of the joint venture Main place of business Registration place Nature of business Accounting office name of enterprise investment Direct indirect processing method

Altay, Xinjiang

Burqin Yema Mine Burqin, Xinjiang

Region Burqin Mining 40.00 Equity Law Co., Ltd. County

Xingye Road, County

Avenira

Western Australia

Limited (ASX:Australia Energy 49.00 Equity method

Perth

AEV)

Bullcrest

Nigeria

Mineral

Nigeria Vido, Lagos Mining 50.00 Equity MethodResources

Lia Island

Limited

Explanation on the difference between the proportion of shareholdings in joint ventures or associates and the proportion of voting rights:

None

Basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of the voting rights but not having significant influence: None

(2). Main financial information of important joint ventures

□Applicable √Not applicable

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(3). Main financial information of important associates

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance/Amount of the current period Opening balance/Amount of the previous period Bullcres Bullcrest

Avenira t Mineral Burqin Mustang Avenira

Limited Mineral Burjin Yema Mining Resources Mining Limited (ASX: Resource Limited Limited (ASX: AEV) AEV) s

Limited

34,325,777. 11,120,85 102,328, 5,874,604.0 Current assets 55,999,833.33

43 6.94 481.33 8 360,406,347 98,414,38 39,707,8 82,888,967. Non-current assets

.15 6.31 51.86 13 394,732,124 109,535,2 142,036, 88,763,571. Total assets 55,999,833.33

.58 43.25 333.19 21

20,244,450. 3,838,651 5,677,97 14,606,519. Current liabilities 15,230.00

20.04 3.80 96 242,397,327 9,273,277 118,528, 8,648,130.7Non-current liabilities

.85 .81 360.41 5 262,641,778 13,111,92 124,206, 23,254,650. Total liabilities 15,230.00

.05 8.85 334.20 72

minority interests

Attributable to the parent company 132,090,346 96,423,31 17,829,9 65,508,920.

55,984,603.33

Shareholders' equity .53 4.40 98.99 50

Based on shareholding ratio

52,836,138. 47,247,42 8,914,99 20,785,980. Calculated net asset share 22,393,841.33

61 4.06 9.50 47 amount

7,444,062 8,196,24 4,289,798.7 Adjustments 3,600,000.00

.09 8.13 4

7,444,062 8,196,24 4,289,798.7 --Goodwill

.09 8.13 4 --Internal transactions not yet

realize profits

--Others 3,600,000.00

rights to joint ventures

52,836,138. 54,691,48 17,111,2 25,075,779. Book value of Yi Investment 25,993,841.33

61 6.15 47.62 21 value

There is a public offer

joint venture rights

equity investment

value

46,814,893. 327,844.4 6,839,91

Operating income 197,059.78 58 4 1.75

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267,809. Net profit 919,795.96 8,100,443 -15,396.67 25,337,123.

.68 03 Net of discontinued operations

profit

other comprehensive income

267,809. Total comprehensive income 919,795.96 8,100,443 -15,396.67 25,337,123.

.68 03

received this year

from associated companies

of dividends

Other notes:

None

(4). Summary financial information of unimportant joint ventures and associates □Applicable √Not applicable

(5). Explanation of significant restrictions on the ability of joint ventures or associates to transfer funds to the company □Applicable √Not applicable

(6).Excess losses incurred by joint ventures or associates

□Applicable √Not applicable

(7).Unconfirmed commitments related to investment in joint ventures

□Applicable √Not applicable

(8).Contingent liabilities related to investments in joint ventures or associates

□Applicable √Not applicable

4. Important joint operations

□Applicable √Not applicable

5. Interests in structured entities that are not included in the scope of consolidated financial statements. Relevant instructions for structured entities that are not included in the scope of consolidated financial statements: □ Applicable √ Not applicable

6. Others

□Applicable √Not applicable

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11. Government subsidies

1. Government subsidies recognized according to the amount receivable at the end of the reporting period

□Applicable √Not applicable

Reasons for failure to receive the estimated amount of government subsidy at the estimated time

□Applicable √Not applicable

2. Liability items involving government subsidies

√Applicable □Not applicable

Unit: Yuan Currency: RMB Included in this period

Financial statements New in this period Transferred in this period Other and assets/beginning balance of this period Non-operating income Closing balance

Item Subsidy amount Other income changes Amount related to income

130,165, 12,600,0 1,575,75 3,244,89 144,434, deferred income from assets

835.17 00.00 0.00 0.06 975.23 Off

130,165, 12,600,0 1,575,75 3,244,89 144,434,

Total /

835.17 00.00 0.00 0.06 975.23

3. Government subsidies included in current profits and losses

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Type Amount for the current period Amount for the previous period

Related to assets 1,575,750.00 5,666,782.18 Related to income 19,549,123.48 5,997,449.06

Total 21,124,873.48 11,664,231.24

Other notes:

None

12. Risks related to financial instruments

1. Risks of financial instruments

√Applicable □Not applicable

The company's business activities will face various financial risks: market risk (mainly exchange rate risk) and credit risk. The Company's overall risk management program addresses the unpredictability of financial markets and seeks to reduce potential adverse effects on the Company's financial results.

The company's main financial instruments include financial product investments, loans, receivables, payables, etc. The risks associated with these financial instruments and the risk management policies adopted by the company to reduce these risks are as follows. The company's management manages and monitors these risk exposures to ensure that the above risks are controlled within limited limits.

The company's goal in risk management is to achieve an appropriate balance between risks and returns, reduce the negative impact of risks on the company's operating performance to the lowest level, and maximize the interests of shareholders and other equity investors. Based on this risk management objective, the company's basic risk management strategy is to determine and analyze the various risks faced by the company, establish an appropriate risk tolerance bottom line and conduct risk management, and supervise various risks in a timely and reliable manner to control risks within a limited range.

①Exchange rate risk

Exchange rate risk refers to the risk of losses due to changes in exchange rates. Some of the company's agrochemical products (diglyphosate, glyphosate, methionine) have export business; the main business of overseas subsidiary STK is mainly settled in US dollars. Except for Argentina and Colombia, the rest are located in Latin America.

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The secondary subsidiaries of Ding America mostly use local currencies for settlement; the overseas subsidiary Hebang Investment (Hong Kong) has overseas equity investments; the main business of overseas subsidiaries PPI and PPR is mainly settled in US dollars and Australian dollars; the main business of overseas subsidiary Indonesia Hebang is mainly settled in US dollars and Indonesian rupiah. The company's foreign exchange risks in the current period are mainly related to the US dollar, Hong Kong dollar, and Australian dollar. The company's confirmed foreign currency assets and liabilities and future foreign currency transactions are subject to foreign exchange risks. The financial department of the company's headquarters is responsible for monitoring the company's foreign currency transactions and the scale of foreign currency assets and liabilities to minimize the foreign exchange risks faced.

As of December 31, 2025, the amounts of foreign currency financial assets and foreign currency financial liabilities held by the company converted into RMB are detailed in Note VII. 81, Foreign Currency Monetary Items.

The Company pays close attention to the impact of exchange rate changes on the financial statements. On December 31, 2025, for the company's various foreign currency financial assets and foreign currency financial liabilities, if the RMB appreciates or depreciates by 10% against various foreign currencies and other factors remain unchanged, the company's net assets will increase or decrease by approximately 164.8179 million yuan.

②Credit risk

As of December 31, 2025, the maximum credit risk exposure that may cause the company's financial losses mainly comes from the loss of the company's financial assets caused by the failure of the other party to the contract to perform its obligations, specifically including: the carrying amount of the financial assets recognized in the consolidated balance sheet; for financial instruments measured at fair value, the book value reflects its risk exposure, but not the maximum risk exposure, and its maximum risk exposure will change with changes in fair value in the future. In order to reduce credit risk, the Company reviews the recovery status of each single major receivable on each balance sheet date to ensure that sufficient expected credit losses are provided for unrecoverable amounts. The Company's working capital is deposited in banks with higher credit ratings, so the credit risk of working capital is lower.

The Company has adopted the necessary policies to ensure that all sales customers have a good credit history. The total amount of accounts receivable from the top five customers of the company is RMB 330.7669 million.

2. Hedging

(1). The company carries out hedging business for risk management

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

(2). The company carries out qualified hedging business and applies hedging accounting

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

(3). The company carries out hedging business for risk management and expects to achieve risk management objectives but does not apply hedging accounting.

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

3. Transfer of financial assets

(1). Classification of transfer methods

□Applicable √Not applicable

(2). Financial assets derecognized due to transfer

□Applicable √Not applicable

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(3). Transferred financial assets with continued involvement

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

13. Disclosure of fair value

1. Closing fair value of assets and liabilities measured at fair value

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing fair value items First level fair price Second level fair value Total third level fair value

Value measurement Fair value measurement Measurement

1. Continuous fair value measurement

quantity

(1) Trading financial assets

1. Measured at fair value and changed

Financial assets that are automatically included in current profits and losses

assets

(1) Debt instrument investment

(2) Equity instrument investment

(3) Derivative financial assets

2. Designated to be measured at fair value

And its changes are included in the current profit and loss

financial assets

(1) Debt instrument investment

(2) Equity instrument investment

(2) Other debt investments

(3) Investment in other equity instruments

35,074,658.95 267,364,816.65 302,439,475.60 capital

(4) Investment real estate

1. Land use rights for lease

2. Buildings for rent

3. Hold and prepare to transfer after appreciation

land use rights

(5) Biological assets

1. Consumable biological assets

2. Productive biological assets

(6) Accounts receivable financing 350,670,396.62 350,670,396.62

(7) Other non-current finance

465,278,185.83 465,278,185.83Assets

1. Measured at fair value and changed

Financial assets automatically included in current profits and losses 465,278,185.83 465,278,185.83 assets

(1) Equity instrument investment 465,278,185.83 465,278,185.83

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Measured at fair value on an ongoing basis

35,074,658.95 1,083,313,399.10 1,118,388,058.05 Total assets

(6) Trading financial liabilities 1. Financial liabilities measured at fair value and changes included in current profits and losses

Including: trading bonds issued

Derivative financial liabilities

Others

2. Financial liabilities designated as measured at fair value and changes included in current profit and loss

Total liabilities measured at fair value on an ongoing basis

2. Non-continuous fair value measurement

(1) Assets held for sale

Total assets measured at fair value on an ongoing basis

Total liabilities measured at fair value on an ongoing basis

2. Basis for determining the market price of continuous and non-continuous first-level fair value measurement items

√Applicable □Not applicable

An unadjusted quoted price in an active market for the same asset.

3. Continuous and non-continuous second-level fair value measurement items, valuation techniques used and qualitative and quantitative information on important parameters

√Applicable □Not applicable

The fair value of investments in debt instruments is recognized based on amounts calculated from observable bond yields.

4. Continuous and non-continuous third-level fair value measurement items, valuation techniques used and qualitative and quantitative information on important parameters

√Applicable □Not applicable

When the existing Level 3 fair value cannot be reliably measured, the existing cost can represent the best estimate within the fair value range.

5. For ongoing third-level fair value measurement items, the reconciliation information and unobservable parameters between the opening and closing book values are sensitive

sexual analysis

□Applicable √Not applicable

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6. For ongoing fair value measurement items, if there is a conversion between levels during the current period, the reasons for the conversion and the policy for determining the time of conversion.

policy

□Applicable √Not applicable

7. Valuation technology changes that occurred during the period and reasons for the changes

□Applicable √Not applicable

8. Fair value of financial assets and financial liabilities not measured at fair value

□Applicable √Not applicable

9. Others

□Applicable √Not applicable

14. Related parties and related transactions

1. Information about the parent company of this enterprise

√Applicable □Not applicable

Unit: RMB 10,000 Currency: RMB The proportion of voting rights held by the parent company in the enterprise Parent company name Place of registration Nature of business Registered capital The proportion of voting rights held by the parent company in the enterprise

(%) (%)Sichuan Hebangtou

Capital Group Co., Ltd.

Sichuan Leshan Investment 13,500.00 22.24 22.24Company

Description of the parent company of this enterprise

The name of the company's parent company: Sichuan Hebang Investment Group Co., Ltd.; business nature: limited liability company; registered address: Shabantan Village, Niuhua Town, Wutongqiao District, Leshan City; legal representative: He Zhenggang; registered capital: RMB 135,000,000; business license registration number: 91511100714470039L. Business scope: General projects: corporate headquarters management; sales of coal and products (except for projects that require approval according to law, business activities can be carried out independently with a business license and in accordance with the law). Licensed projects: Coal mining [branch operations]; import and export of goods; technology import and export (projects that require approval according to law can only be carried out with the approval of relevant departments. Specific business projects are subject to the approval documents or licenses of relevant departments).

The ultimate controller of this enterprise is He Zhenggang

Other notes:

None

2. Information about the company’s subsidiaries

For details of the company’s subsidiaries, please refer to Note 10.1

√Applicable □Not applicable

Subsidiary name Abbreviation Relationship with the Company Sichuan Hebang Phosphate Mine Co., Ltd. Hebang Phosphate Mine Wholly owned subsidiary Sichuan Hebang Liujiashan Phosphate Mine Co., Ltd.

Liujiashan Phosphate Mine wholly-owned subsidiary company

Sichuan Hebang Salt Mine Co., Ltd. Hebang Salt Mine wholly-owned subsidiary Sichuan Wujun Solar Energy Co., Ltd. Wujun Solar Energy controlled subsidiary

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Luzhou Wujun Photovoltaic Engineering Construction Co., Ltd.

Wujun Photovoltaic Engineering Holding Subsidiary Division

Sichuan Wujun Electric Power Engineering Construction Co., Ltd.

Wujun Electrical Construction Holdings Subsidiary Division

Sichuan Wujun Electric Power Engineering Design Co., Ltd.

Wujun Electrical Design Holding Subsidiary Division

Wujun Chongqing Light Energy Co., Ltd. Chongqing Light Energy Holding subsidiary Anhui Fuxing New Energy Technology Co., Ltd. Fuxing Technology Holding subsidiary Leshan Hebang Agricultural Technology Co., Ltd. Hebang Agricultural Science and Technology Wholly-owned subsidiary Guang'an Bimeida Biotechnology Co., Ltd. Guang'an Bimeda Wholly-owned subsidiary Guang'an Bimeida Salt Mine Co., Ltd. Bimeida Salt Mine Wholly-owned subsidiary Guang'an Xinmei Water Co., Ltd. Guang'an Xinmei Wholly-owned subsidiary Leshan Hebang New Material Technology Co., Ltd. Hebang New Material Wholly-owned subsidiary S.T.K.Stockton Group Ltd. STK holding subsidiary Hebang Biotechnology (Hong Kong) Investment Co., Ltd.

Hebang Investment (Hong Kong) wholly-owned subsidiary company

Leshan Yongjiang Industrial Co., Ltd. Yongjiang Industrial’s wholly-owned subsidiary Yongjiang Gas Station in Wutongqiao District, Leshan City

Yongjiang Gas Station Wholly Owned Subsidiary Co., Ltd.

Leshan Runsen Compressed Natural Gas Co., Ltd. Runsen Gas Station Wholly Owned Subsidiary PAN PACIFIC INDUSTRIES PTY

PPI wholly owned subsidiary LTD

Jianwei Hebang Shuncheng Salt Industry Co., Ltd. Qianwei Shuncheng wholly-owned subsidiary Zigong Hebang Chemical Co., Ltd. Zigong Hebang Chemical wholly-owned subsidiary PAN PACIFIC RESOURCES PTY

PPR wholly owned subsidiary LTD

Xinjiang Hebang Kudi Mining Co., Ltd. Kudi Mining wholly-owned subsidiary Xinjiang Hebang Tamu Mining Co., Ltd. Tamu Mining wholly-owned subsidiary PT HEBANG BIOTECHNOLOGY

Indonesia Hebang's wholly-owned subsidiary INDONESIA

Leshan Hebang Mining Engineering Co., Ltd. Hebang Mining Engineering Wholly-owned subsidiary Leshan Jianwei Hebang Mining Co., Ltd. Jianwei Salt Mine Wholly-owned subsidiary Leshan Jingyan Hebang Mining Co., Ltd. Jingyan Salt Mine Wholly-owned subsidiary Inner Mongolia Naiman Banner Hebang New Technology Industry

Naimanqi Industrial Wholly Owned Subsidiary Co., Ltd.

Leshan Hebang Fire Protection Technology Co., Ltd. Hebang Fire Protection Wholly-owned subsidiary Leshan Zhichuang Chemical Machinery Co., Ltd. Zhichuang Chemical Wholly-owned subsidiary Sichuan Hebang Mining Group Co., Ltd. Hebang Mining Wholly-owned subsidiary Xinjiang Hebang Kappa Mining Co., Ltd. Kappa Mining Wholly-owned subsidiary Xinjiang Hebang Niya Mining Co., Ltd. Niya Mining Wholly-owned subsidiary Huili Hebang Shangwuji Mining Co., Ltd.

Shangwuji Mining wholly-owned subsidiary company

Mianning Hebang Mining Co., Ltd. Mianning Mining wholly-owned subsidiary

3. Information about the company’s joint ventures and associated enterprises

Please refer to Note 10.3 for details of important joint ventures or associates of the Company.

√Applicable □Not applicable

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Name of joint venture or associated enterprise Abbreviation Relationship with the Company

Burqin Yema Mining Co., Ltd. Burqin Yema Associates

Avenira Limited (ASX: AEV) AEV Associates

Bullcrest Mineral

BCT Associates Resources Limited

The information of other joint ventures or associates that have related party transactions with the company in the current period, or have balances from related party transactions with the company in previous periods, is as follows:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

4. Other related parties

√Applicable □Not applicable

Names of other related parties Relationship between other related parties and the company Shenzhen Hebangzheng Zhixing Venture Capital Co., Ltd. Same parent company

Chengdu Hebangzheng Zhixing Technology Venture Capital Co., Ltd. has the same parent company

Sichuan Hebang Salt Chemical Co., Ltd. Same parent company

Leshan Qianwei Shoubao Coal Co., Ltd. Same parent company

Sichuan Hebang Group Leshan Jixiang Coal Co., Ltd.

same parent company

Division

Sichuan Hebang Investment Group Co., Ltd. Qianwei Mast Dam

Branch of parent company

coal mine

Panzhihua Zhongli Cheng Industrial Co., Ltd. holds more than 5% stake in companies

Chongqing Heyou Industrial Co., Ltd. shares more than 5% of the company

Heyou Chongqing Solar Energy Co., Ltd. holds more than 5% of the company’s shares, Leshan Superstar Agriculture and Animal Husbandry Co., Ltd., a subsidiary of the company, others

Sichuan Salt Industry Group Co., Ltd. Others

Sichuan Shuncheng Salt Products Co., Ltd. Others

Sichuan Shenyang Real Estate Co., Ltd. Others

Sichuan Hebang Real Estate Development Co., Ltd. Others

Luzhou Hebang Real Estate Development Co., Ltd. Others

Other notes:

Note: In September 2023, the company’s controlling shareholder Hebang Group will no longer be the controlling shareholder of Superstar Agriculture and Animal Husbandry; on October 11, 2023, the company’s related natural persons Mr. He Zhenggang and Mr. Zeng Xiaoping will no longer serve as directors of Superstar Agriculture and Animal Husbandry, and the company’s controlling shareholder Hebang Group will no longer have a seat on the board of directors of Superstar Agriculture and Animal Husbandry. As of October 11, 2024, 12 months have passed since the above situation. Therefore, after October 11, 2024, Superstar Agriculture and Animal Husbandry will no longer be a related party of the company. Therefore, the relationship and transactions with Superstar Agriculture and Animal Husbandry in 2025 have not been disclosed.

5. Related transactions

(1). Related transactions related to the purchase and sale of goods, provision and receipt of services

Procurement of goods/service acceptance form

√Applicable □Not applicable

Unit: Yuan Currency: RMB

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Whether it exceeds the payment

Approved transaction limit

Related parties Related party transaction content Amount incurred in the current period Transaction limit (such as Amount incurred in the previous period (if applicable)

applicable)

Shuncheng salt raw materials 3,612,824.07 40,000,000 No 23,766,290.79 Jixiang Coal Industry Raw coal 23,932,889.40 160,000,000.00 No 94,490,489.21 Jixiang Coal Industry Purchased materials 9,380.53

Mastaba Coal Mine Raw coal 48,555,820.85 120,000,000.00 No 70,753,379.29 Mastaba Coal Mine Materials 88,672.90

Shoubao Coal Industry Raw coal 39,992,365.03 145,000,000.00 No 81,555,896.80 Shoubao Coal Industry Materials 391,577.89

Superstar Agriculture and Animal Husbandry Leather 2,445,181.92 Zhonglicheng Purchase of yellow phosphorus 414,725,636.19 950,000,000.00 No 167,631,486.72 Heyou Industrial Purchase of soda ash 100,000,000.00 No 33,927,968.22 Total 531,309,166.86 1,515,000,000.00 474,570,692.95

List of goods sold/services provided

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Related parties Related party transaction content Amount incurred in the current period Amount incurred in the previous period

Shuncheng Salt Sales of raw materials 28,446,268.74 39,353,754.84 Shuncheng Salt Solid waste disposal 196,567.92 Heyou Solar Sales of raw materials 15,576,008.54

Heyou Industrial Sales of raw materials 2,733,617.38 8,910,617.59 Heyou Industrial Sales of glass 28,866.65 Zhonglicheng Sales of phosphate rock 7,110,741.22

Zhonglicheng Sales of raw materials 343.36

Superstar Agriculture and Animal Husbandry Sales of methionine 11,644,640.00 Superstar Agriculture and Animal Husbandry Sales of materials 29,871.01 Superstar Agriculture and Animal Husbandry Solid waste disposal 317,974.53 Shenyang Real Estate Sales of natural gas and refined oil 31,961.65 32,063.16 Superstar Agriculture and Animal Husbandry Sales of natural gas and refined oil products 153,257.71 Mastaba Coal Mine Sales of refined oil products 367,096.56 338,574.22 Mastaba Coal Mine Sales materials 34,961.07

Shoubao Coal Industry Sales of refined oil 511,159.00 582,486.13 Shoubao Coal Industry Sales of materials 3,185.84

Hebang Group Sales of refined oil 3,667.21 3,080.79 Jixiang Coal Industry Sales of refined oil 311,531.54 355,655.91 Jixiang Coal Industry Sales of materials 8,911.51

Total 55,139,453.62 61,947,410.46

Description of related transactions for purchasing and selling goods, providing and receiving services

The company’s decision-making process for related-party transactions—related-party transactions that occur in the company are reviewed and approved by the company’s board of directors and shareholders’ meeting in the form of “annual related-party transaction forecast proposal”. The company's related transaction pricing principles: ① The brine related transaction price is negotiated and priced based on cost plus reasonable profit. The brine sales price determined by both investors when Shuncheng Salt was established is used as the brine related transaction price. In subsequent years, it will be adjusted based on changes in Hebang Salt Mine costs and taxes. ②The price of related-party transactions of industrial salt is based on the average selling price of Shuncheng Salt to third-party industrial salt in that month as the purchase price of related-party transactions. ③The price of coal-related transactions is calculated based on the weighted average price of coal purchased by the company from a third party in the current month; if the company does not purchase coal from a third party, it will be settled based on the weighted average price of the coal mining company's selling price to the third party that month; if the company does not purchase coal from a third party, and the coal mining company does not sell coal to a third party, the transaction parties will settle based on the market price of the same type of coal in the local region that month. ④The related transaction prices of natural gas and refined oil are determined based on market prices. ⑤Methionine related transaction prices are determined based on market prices.

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(2). Related entrusted management/contracting and entrusted management/outsourcing situation. The company’s entrusted management/contracting situation table: □Applicable √Not applicable

Description of associated hosting/contracting situations

□Applicable √Not applicable

The company’s entrusted management/outsourcing situation table □ Applicable √ Not applicable

Description of association management/outsourcing situation

□Applicable √Not applicable

(3). Related leasing situation

As a lessor, our company:

□Applicable √Not applicable

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As a lessee, our company:

√Applicable □Not applicable

Unit: Yuan Currency: RMB Amount for the current period Amount for the previous period

simplified processing simplified processing

Not included in rent Not included in rent

short term rental short term rental

Lease liability calculation Lease liability calculation

Lease and low price Lease and low price Lease assumed Lessor's name Type of leased asset Variable amount paid Increased use value of asset Lease liability Interest payment Lease liability interest payment Lease payment Lease payment of right-of-use asset Lease payment of right-of-use asset Lease payment amount (if appropriate)

fees (e.g. fees (e.g.

use) use)

Applicable) Applicable)

Shenyang Real Estate Office Building 149,599.02 Hebang Salt Chemical Office Building 12,728.86

Total 12,728.86 149,599.02 Description of related leases

□Applicable √Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

(4) Related guarantees

The company acts as a guarantor

□Applicable √Not applicable

The company as the guaranteed party

√Applicable □Not applicable

Unit: Yuan Currency: RMB The guarantee has been fulfilled by the guarantor. Guarantee amount. Guarantee start date. Guarantee expiry date.

Completed Hebang Group 250,000,000.00 July 9, 2025 July 8, 2026 No Hebang Group 95,000,000.00 March 6, 2025 March 6, 2027 No Hebang Group 100,000,000.00 July 1, 2025 July 1, 2027 No Hebang Group 200,000,000.00 December 18, 2025 December 17, 2027 No

Total 645,000,000.00

Description of related guarantees

□Applicable √Not applicable

(5). Related party fund lending

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Related parties Borrowing amount Start date Maturity date Description of borrowing

None

Related party Lending amount Start date Maturity date Description of lending

BCT 111,773,306.36 July 2025 July 2030 See note

Note: Long-term receivables are loans provided by the Company to its associate Bullcrest Mineral Resources Limited, with a term of 5 years. This long-term receivable is part of BCT's investment portfolio, that is, the company increases its capital according to BCT's registered capital and borrows money from BCT within a certain amount at an agreed interest rate, thereby acquiring 50% of BCT's equity. And the borrowing company has priority in distribution rights over dividends.

(6).Related party asset transfer and debt restructuring

□Applicable √Not applicable

(7).Remuneration of key management personnel

□Applicable √Not applicable

(8).Other related transactions

□Applicable √Not applicable

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6. Unsettled items such as receivables and payables to related parties

(1).Items receivable

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

Project name Related parties

Book balance Bad debt provision Book balance Bad debt provision Accounts receivable Shuncheng Salt 5,614,022.85 280,701.14 1,767,920.38 88,396.02 Accounts receivable Heyou Solar 17,633,508.98 881,675.45

Accounts receivable Heyou Industrial 8,157,985.52 661,349.17 10,101,617.20 505,080.86 Long-term receivables BCT 111,773,306.36

Total 143,178,823.71 1,823,725.76 11,869,537.58 593,476.88

(2). Payable items

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Project name Related party Book balance at the end of the period Book balance at the beginning of the period

Accounts payable Shuncheng Salt 4,359,805.00 Accounts payable Jixiang Coal 122,869.25 2,066,892.54 Accounts payable Weiganba Coal Mine 3,478,859.60 148,036.17 Accounts payable Shoubao Coal 2,443,373.36 13,625,596.30 Accounts payable Zhonglicheng 23,448,952.89 27,808,983.99 Contract liabilities Zhonglicheng 1,523.89

Accounts payable Heyou Industrial 49,831.55 17,049,831.55

Total 29,545,410.54 65,059,145.55

(3).Other items

□Applicable √Not applicable

7. Related party commitments

□Applicable √Not applicable

8. Others

□Applicable √Not applicable

15. Share-based payment

1. Various equity instruments

(1).Details

√Applicable □Not applicable

Quantity unit: shares Amount unit: Yuan Currency: RMB Grant object category Granted in this period Exercise in this period Unlocked in this period Expired in this period

Category Quantity Amount Quantity Amount Quantity Amount Quantity Amount Third Phase Employees

106,086,829 150,000,004.48

share ownership plan

Total 106,086,829 150,000,004.48

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(2). Stock options or other equity instruments outstanding at the end of the period

□Applicable √Not applicable

2. Equity-settled share-based payment

√Applicable □Not applicable

Unit: Yuan Currency: RMB Equity-settled share-based payment object Method for determining the fair value of equity instruments on the grant date of the third phase of the employee stock ownership plan Important parameters for determining the fair value of equity instruments on the grant date based on the fair value of the stock on the grant date 1.95 yuan/share

"The basis for determining the number of exercisable equity instruments for the third phase of Sichuan Hebang Biotechnology Co., Ltd."

Reasons for significant differences between the current period’s estimate and the previous period’s estimate under the Industrial Stock Ownership Plan Not applicable

Accumulation of equity-settled share-based payments included in capital reserves

47,562,263.76 amount

Other notes:

None

3. Share-based payment settled in cash

□Applicable √Not applicable

4. Share-based payment expenses for this period

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Category of grant objects Equity-settled share-based payment expenses Cash-settled share-based payment expenses The third phase of employee stock ownership plan 15,913,023.62

Total 15,913,023.62

Other instructions

None

5. Modification and termination of share-based payment

□Applicable √Not applicable

6. Others

□Applicable √Not applicable

16. Commitments and contingencies

1. Important commitments

□Applicable √Not applicable

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2. Contingencies

(1). Important contingencies existing on the balance sheet date

□Applicable √Not applicable

(2). The company has no important contingencies that need to be disclosed, and it should also be explained: □ Applicable √ Not applicable

3. Others

□Applicable √Not applicable

17. Events after the balance sheet date

1. Important non-adjustment matters

□Applicable √Not applicable

2. Profit distribution

√Applicable □Not applicable

Unit: Yuan Currency: RMB Profit or dividend to be distributed 0.00 Yuan Profit or dividend declared to be distributed upon review and approval 0.00 Yuan

In view of the fact that the company's net profit attributable to shareholders of listed companies in 2025 is negative, and in combination with the "Articles of Association" and the company's future development plan and capital needs, in accordance with the "Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends by Listed Companies", "Self-Discipline Supervision Guidelines for Listed Companies No. 1 - Standardized Operations of the Shanghai Stock Exchange" and other relevant regulations, the company plans not to distribute profits in 2025, nor to convert capital reserves into share capital.

3. Sales returns

□Applicable √Not applicable

4. Description of other post-balance sheet events

□Applicable √Not applicable

18. Other important matters

1. Correction of previous accounting errors

During the reporting period, the Company had no correction of previous accounting errors.

2. Important debt restructuring

□Applicable √Not applicable

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3. Asset replacement

(1).Non-monetary asset exchange

□Applicable √Not applicable

(2).Other asset replacement

□Applicable √Not applicable

4. Annuity plan

□Applicable √Not applicable

5. Termination of operations

□Applicable √Not applicable

6. Branch information

(1). Basis for determination of reporting segments and accounting policies

□Applicable √Not applicable

(2). Financial information of reporting segments

√Applicable □Not applicable

Unit: 10,000 yuan Currency: RMB

Project Chemical industry Mining industry Photovoltaic glass industry Inter-segment elimination Total

1. Operating income 606,658.29 43,325.58 124,077.05 55,309.84 718,751.08

2. Operating costs 552,215.47 14,644.55 123,129.86 54,040.83 635,949.05

3. Net profit attributable to parent company -25,225.62 18,595.40 -46,913.70 96.75 -53,640.67

4. Total assets 2,201,599.38 282,691.92 434,168.03 97,514.97 2,820,944.36

5. Total liabilities 825,052.31 35,719.88 234,464.85 70,180.69 1,025,056.35

(3). If the company has no reportable segments, or cannot disclose the total assets and total liabilities of each reportable segment, the reasons should be stated □Applicable √Not applicable

(4).Other instructions

□Applicable √Not applicable

7. Other important transactions and matters that have an impact on investors’ decision-making

□Applicable √Not applicable

8. Others

□Applicable √Not applicable

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19. Notes on main items of the parent company’s financial statements

1. Accounts receivable

(1). Disclosure based on aging

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 668,785,584.41 491,732,474.93 Subtotal within 1 year 668,785,584.41 491,732,474.93 1 to 2 years 25,638,871.14 24,950.00 2 to 3 years

More than 3 years

3 to 4 years

4 to 5 years

More than 5 years 18,999,854.22 18,999,854.22

Total 713,424,309.77 510,757,279.15

(2). Classified disclosure according to bad debt accrual method

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance Opening balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book Book ratio Provision ratio Ratio Provision ratio

Amount Amount Value Amount Amount Value (%) Example (%) (%) Example (%)

18,999 18,999

18,999 18,999

Bad provision based on individual items

,854.2 2.66 ,854.2 100.00 ,854.2 3.72 ,854.2 100.00

Account preparation

2 2

2 2

Among them: the individual amount is significant

12,231 12,231 12,231 12,231

and separately accrue bad

,198.2 1.71 ,198.2 100.00 ,198.2 2.39 ,198.2 100.00

accounts receivable

5 5 5 5

Accounts

The individual amount is not significant

Large but accrued separately

6,768, 6,768, 6,768, 6,768,

Bad debt provision should be 0.95 100.00 1.33 100.00

655.97 655.97 655.97 655.97

Collect accounts

694,42 12,613 681,81 491,75 484,55Based provision on a combination basis 7,204,

4,455. 97.34 ,132.7 1.82 1,322. 7,424. 96.28 1.47 2,430. Account preparation 994.10

55 9 76 93 83

Among them: According to credit risk characteristics

694,42 12,613 681,81 491,75 484,55 Levy group accrual 7,204,

4,455. 97.34 ,132.7 1.82 1,322. 7,424. 96.28 1.47 2,430. Account provision receivable 994.10

55 9 76 93 83Account

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Among them: risk group 226,62 12,613 214,01 144,07 136,86

7,204,

Total 3,784. 31.77 ,132.7 5.57 0,652. 4,932. 28.21 5.00 9,937. 994.10

93 9 14 05 95 Within the scope of consolidation 467,80 467,80 347,68 347,68 Joint combination 0,670. 65.57 0,670. 2,492. 68.07 2,492. 62 62 88 88 713,42 31,612 681,81 510,75 26,204 484,55Total 4,309. 100.00 ,987.0 4.43 1,322. 7,279. 100.00 ,848.3 5.13 2,430.

77 1 76 15 2 83

Provision for bad debts is made individually:

√Applicable □Not applicable

Unit: Yuan Currency: RMB Closing balance

Name

Book balance Bad debt provision Proportion of provision (%) Reason for provision

This customer has ceased operations and Sichuan Nico Guorunxin has no signs of resuming operations.

12,231,198.25 12,231,198.25 100.00

Materials Co., Ltd. Elephant, it is expected that it will be difficult to return

money.

The amount of other individual items is not significant

It is expected that the funds will be difficult to recover, but bad debts will be separately accrued 6,768,655.97 6,768,655.97 100.00

return

Prepared accounts receivable

Total 18,999,854.22 18,999,854.22 100.00 /

Instructions on accruing bad debt provisions individually:

□Applicable √Not applicable

Provision for bad debts by group:

√Applicable □Not applicable

Combined accrual items: sales business category

Unit: Yuan Currency: RMB Closing balance

Name

Book balance Bad debt provision Ratio of provision (%) Within 1 year 200,984,913.79 10,049,245.69 5.00 1-2 years 25,638,871.14 2,563,887.10 10.00 Total 226,623,784.93 12,613,132.79 5.57

Instructions on accruing bad debt provisions by group:

□Applicable √Not applicable

Provision for bad debts based on the general expected credit loss model

□Applicable √Not applicable

Basis for division of each stage and provision ratio for bad debts

None

Explanation of significant changes in the book balance of accounts receivable that have experienced changes in loss provisions during the current period:

□Applicable √Not applicable

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(3). Bad debt provision situation

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Amount of changes in the current period

Category Opening balance Recovery or write-off or other Ending balance accrual

Reversal, write-off, change in individual amount is significant and separately accrued

12,231,198.25 12,231,198.25 Accounts receivable for bad debt provision

The individual amount is not significant but is calculated separately

6,768,655.97 6,768,655.97 Accounts receivable with provision for bad debts

Bad debt provision should be made on a group basis

7,204,994.10 5,408,138.69 12,613,132.79Account collection

Total 26,204,848.32 5,408,138.69 31,612,987.01

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

□Applicable √Not applicable

Other notes:

None

(4). Accounts receivable actually written off in the current period

□Applicable √Not applicable

Among them, the important write-off of accounts receivable

□Applicable √Not applicable

Instructions for writing off accounts receivable:

□Applicable √Not applicable

(5). Accounts receivable and contract assets of the top five closing balances collected by debtors

√Applicable □Not applicable

Unit: Yuan Currency: RMB accounts receivable and

Accounts receivable at the end of the period Contract assets period Accounts receivable and contract Contract assets at the end of the period Bad debt provision at the end of the period Unit name

Amount Closing balance Closing balance of assets Balance of total balances

Proportion (%) PAN PACIFIC

INDUSTRIES 191,992,813.43 191,992,813.43 26.91 PTY LTD

Sichuan Wujun Light Energy

123,190,514.30 123,190,514.30 17.27 Co., Ltd.

Wu Jun Chongqing Solar Energy

123,155,034.38 123,155,034.38 17.26 Co., Ltd.

Hubei Yijun Yaoneng

70,746,000.00 70,746,000.00 9.92 4,537,300.00 New Materials Co., Ltd.

Leshan Hebang Agriculture

29,462,308.51 29,462,308.51 4.13 Technology Co., Ltd.

Total 538,546,670.62 538,546,670.62 75.49 4,537,300.00

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Other notes:

None

Other notes:

□Applicable √Not applicable

2. Other receivables

Item list

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Closing balance Opening balance Interest receivable

Dividends receivable

Other receivables 5,064,693,517.05 4,846,389,805.98

Total 5,064,693,517.05 4,846,389,805.98

Other notes:

□Applicable √Not applicable

interest receivable

(1).Classification of interest receivable

□Applicable √Not applicable

(2).Important overdue interest

□Applicable √Not applicable

(3). Classified disclosure according to bad debt accrual method □Applicable √Not applicable

Provision for bad debts is made individually:

□Applicable √Not applicable

Explanation on the provision of bad debt provisions on an individual basis: □ Applicable √ Not applicable

Provision for bad debts by group:

□Applicable √Not applicable

(4). Provision for bad debts based on the general expected credit loss model □Applicable √Not applicable

The basis for dividing each stage and the proportion of provision for bad debts are not available

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Explanation of significant changes in the book balance of interest receivable due to changes in loss provisions in the current period: □ Applicable √ Not applicable

(5). Bad debt provisions

□Applicable √Not applicable

Among them, the amount of bad debt provision recovery or reversal in the current period is important: □ Applicable √ Not applicable

Other notes:

None

(6). Interest receivable actually written off in the current period □ Applicable √ Not applicable

Among them, the important write-off of interest receivable □ Applicable √ Not applicable

Write-off instructions:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Dividends receivable

(1). Dividends receivable

□Applicable √Not applicable

(2). Important dividends receivable aged more than 1 year □ Applicable √ Not applicable

(3). Classified disclosure according to bad debt accrual method □Applicable √Not applicable

Provision for bad debts is made individually:

□Applicable √Not applicable

Explanation on the provision of bad debt provisions on an individual basis: □ Applicable √ Not applicable

Provision for bad debts by group:

□Applicable √Not applicable

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(4). Provision for bad debts based on the general expected credit loss model

□Applicable √Not applicable

Basis for division of each stage and provision ratio for bad debts

None

Explanation of significant changes in the book balance of dividends receivable due to changes in loss provisions in the current period: □ Applicable √ Not applicable

(5). Bad debt provisions

□Applicable √Not applicable

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

□Applicable √Not applicable

Other notes:

None

(6). Dividends receivable actually written off in the current period

□Applicable √Not applicable

Among them, the important write-off of dividends receivable

□Applicable √Not applicable

Write-off instructions:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Other receivables

(1). Disclosure based on aging

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Aging Book balance at the end of the period Book balance at the beginning of the period Within 1 year (including 1 year) 401,119,162.58 4,794,670,708.36 Subtotal within 1 year 401,119,162.58 4,794,670,708.36 1 to 2 years 4,639,955,858.26 31,515,734.86 2 to 3 years 3,575,984.90 3,000.00 More than 3 years

3 to 4 years 20,374,455.86 4 to 5 years 20,374,455.86

More than 5 years 39,480.00 39,480.00 Total 5,065,064,941.60 4,846,603,379.08

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(2). Classification by nature of payment

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Nature of payment Book balance at the end of the period Book balance at the beginning of the period Reserve fund 61,493.52 40,000.00 Deposit and margin 505,310.28 443,106.19 Related party accounts within the scope of consolidation 5,063,431,963.42 4,846,120,272.89 Others 1,066,174.38

Total 5,065,064,941.60 4,846,603,379.08

(3). Bad debt provision accrual

√Applicable □Not applicable

Unit: Yuan Currency: RMB Phase 1 Phase 2 Phase 3

Lifetime expectations letter Lifetime forecast letter

Provision for bad debts Total expected losses in the next 12 months (credit losses that have not occurred (credit losses that have occurred)

period credit loss

Use impairment) Use impairment)

As of January 1, 2025

4,380.00 209,193.10 213,573.10 amount

As of January 1, 2025

Amount in this period

--Transfer to the second stage

--Transfer to the third stage

--Return to the second stage

--Return to the first stage

Provision in this period 57,193.60 100,657.85 157,851.45 Transferred in this period

Sales in this period

Write-off in this period

Other changes

December 31, 2025

61,573.60 309,850.95 371,424.55 Balance

Basis for division of each stage and provision ratio for bad debts

None

Explanation of significant changes in the book balance of other receivables that have experienced changes in loss provisions during the current period:

□Applicable √Not applicable

The amount of bad debt provision for the current period and the basis for assessing whether the credit risk of financial instruments has increased significantly:

□Applicable √Not applicable

(4). Bad debt provisions

√Applicable □Not applicable

Unit: Yuan Currency: RMB Change amount in the current period

Category Beginning Balance Ending Balance

Provision Recovery or reversal Write-off or write-off Other changes

Provision for bad assets by combination 213,573.10 157,851.45 371,424.55

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accounts receivable

Accounts

Total 213,573.10 157,851.45 371,424.55

Among them, the amount of bad debt provision reversed or recovered in the current period is important:

□Applicable √Not applicable

Other notes:

None

(5). Other receivables actually written off in the current period

□Applicable √Not applicable

Important write-offs of other receivables:

□Applicable √Not applicable

Instructions for writing off other receivables:

□Applicable √Not applicable

(6). Other receivables with top five closing balances based on debtors

√Applicable □Not applicable

Unit: Yuan Currency: RMB as a percentage of other receivables at the end of the period Name of bad debt provision unit Closing balance Nature of the payment Aging

Proportion of the total amount (%) Closing balance of Guang'an Bimeidasheng

Within 1 year, 1-Wu Technology Co., Ltd. 4,777,979,670.00 94.33 Internal transactions

2 years, 2-3 years

Wu Jun Chongqing Solar Energy

203,581,066.72 4.02 Internal transactions Within 1 year Limited company

Sichuan Hebang Liujia Within 1 year, 1-Shan Phosphate Mining Co., Ltd. 76,419,491.65 1.51 Internal transactions 2 years, 2-3 company years, 4-5 years Xinjiang Hebanniya

1,300,000.00 0.03 Internal transactions Within 1 year Mining Co., Ltd.

Xinjiang and Bangka

1,100,000.00 0.02 Internal transactions Within 1 year Mining Co., Ltd.

Total 5,060,380,228.37 99.91 / /

(7). Presented in other receivables due to centralized management of funds

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

3. Long-term equity investment

√Applicable □Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Unit: Yuan Currency: RMB

Closing balance Beginning balance items

Book balance Impairment provision Book value Book balance Impairment provision Book value

7,400,831, 259,331,9 7,141,499 6,739,966, 198,943,6 6,541,022 Investment in subsidiaries

599.94 62.23 ,637.71 595.95 79.97 ,915.98

25,993,841 25,993,84 Investments in associates and joint ventures

.33 1.33

7,400,831, 259,331,9 7,141,499 6,765,960, 198,943,6 6,567,016Total

599.94 62.23 ,637.71 437.28 79.97 ,757.31

(1). Investment in subsidiaries

√Applicable □Not applicable

Unit: Yuan Currency: RMB Opening balance Increase or decrease in the current period Ending balance of invested orders Impairment provision Impairment provision (book price Impairment provision (book price) Opening balance Additional investment Decrease in investment Others Closing balance

Value) Preparation Value) 60,184,0 91,999.9 60,275,9Hebang Salt Mine

00.00 8 99.98

10,000,0 10,000,0 Jianwei Salt Mine

00.00 00.00

10,000,0 10,000,0 Well Research Salt Mine

00.00 00.00 1,445,83 223,200, 1,669,03Wu Jun Light Energy

5,015.51 534.00 5,549.51 Wujun Photovoltaic 312,000. 155,999. 467,999. Engineering 00 99 99 1,187,47 593,739. 1,781,21 Chongqing Solar Energy

9.28 52 8.80 1,879,23 2,225,49 1,881,45Hebang Nongke

3,148.56 9.90 8,648.46Hebang New Materials 16,000,0 16,000,0 Materials 00.00 00.00 690,082, 41,000.0 690,123,Yongjiang Industrial

000.00 0 000.00 66,600,2 66,600,2 Qianweishuncheng

00.00 00.00Zigong Hebang 45,000,0 45,000,0Chemical Industry 00.00 00.00

20,000,0 20,000,0Zhichuang Chemical Industry

00.00 00.00Naimanqishi 180,000. 180,000.

Industry 00 00

367,856, 198,943, 60,388,2 307,468, 259,331, STK

320.03 679.97 82.26 037.77 962.23 170,491, 59,581,9 230,072, Indonesia and Bang

007.42 92.00 999.42

2,133,21 2,133,21Hebang Mining

5,983.78 5,983.78

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

532,112, 532,167, 55,999.9

Hebang Phosphate Mine

000.00 999.99 9

Liujiashan Phosphorus 960,000, 960,000,

Mine 000.00 000.00

2,000,00 8,000,00 10,000,0

kudi mining

0.00 0.00 00.00

2,000,00 3,000,00 5,000,00

Tamu Mining

0.00 0.00 0.00

2,000,00 2,000,00

Niya Mining

0.00 0.00

2,000,00 2,000,00

Kappa Mining

0.00 0.00

5,000,00 5,000,00

Huili Mining

0.00 0.00

Hebang Investment 302,129, 262,082, 564,211,

(Hong Kong) 745.18 100.00 845.18

6,541,02 198,943, 2,738,26 2,080,55 60,388,2 3,164,23 7,141,49 259,331, total

2,915.98 679.97 0,609.78 9,845.17 82.26 9.38 9,637.71 962.23

(2). Investment in associates and joint ventures

√Applicable □Not applicable

Unit: Yuan Currency: Changes in RMB for the current period Impairment declaration Calculation End of period and beginning of period Provision for deduction Equity method Other Disbursement Provision Balance of investment balance Additional investment less Confirmed below Comprehensive other equity Cash Less (accounting unit (book Other period capital investment investment income change dividend value par value) final capital profit or loss adjustment or profit provision value) remaining profit reserve

Um

1. Joint ventures

Subtotal

2. Joint ventures

Burqin

wild horse mine

25,993, 26,000, 367,91 474,378.

Industry Co., Ltd. -52,836,138.61

841.33 000.00 8.38 90

company

25,993, 26,000, 367,91 474,378.

Subtotal -52,836,138.61

841.33 000.00 8.38 90

25,993, 26,000, 367,91 474,378.

Total -52,836,138.61

841.33 000.00 8.38 90

Note: Other decreases are due to the company's investment in Burqin Yema Mining Co., Ltd. being invested into its subsidiary Hebang Mining Co., Ltd.

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

(3). Impairment testing of long-term equity investments

√Applicable □Not applicable

The recoverable amount is determined as the net amount after fair value minus disposal costs.

□Applicable √Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable √Not applicable

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

□Applicable √Not applicable

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

□Applicable √Not applicable

Other notes:

None

4. Operating income and operating costs

(1). Operating income and operating costs

√Applicable □Not applicable

Unit: Yuan Currency: RMB Amount for the current period Amount for the previous period

Project

Revenue Cost Revenue Cost Main business 3,358,160,390.55 3,166,036,873.53 3,775,229,022.35 3,494,257,485.31 Other businesses 128,281,886.57 104,117,237.94 71,657,629.93 47,168,933.48

Total 3,486,442,277.12 3,270,154,111.47 3,846,886,652.28 3,541,426,418.79

(2). Decomposition information of operating income and operating costs

√Applicable □Not applicable

Unit: Yuan Currency: RMB Hebang Biotechnology Total

Contract classification

Operating income Operating cost Operating income Operating cost Joint alkali products 1,128,783,021.95 1,402,927,632.46 1,128,783,021.95 1,402,927,632.46 Glyphosate 150,221,957.77 149,910,020.98 150,221,957.77 149,910,020.98Methionine

1,885,800,523.23 1,445,076,143.81 1,885,800,523.23 1,445,076,143.81 and by-products

Other products

Products (liquid ammonia 193,354,887.60 168,123,076.28 193,354,887.60 168,123,076.28, etc.)

Other industries

128,281,886.57 104,117,237.94 128,281,886.57 104,117,237.94

Total 3,486,442,277.12 3,270,154,111.47 3,486,442,277.12 3,270,154,111.47

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Other notes:

□Applicable √Not applicable

(3). Description of performance obligations

√Applicable □Not applicable

Unit: Yuan Currency: RMB The company's commitments The company's commitments The company's pledge to fulfill its performance obligations Important payments Whether it is major

Item Transferred goods will be returned to the customer within a certain period of time Quantity guarantee type and service time Terms Responsible person

Nature of account’s payment Relevant obligations to receive or pay in advance

Products delivered to

Give customers certain

customer, asset

Industrial product sales credit period, pass

Transfer of control Physical product Yes Sold without statutory warranty Cash settlement is required

When giving to customers

or acceptance bill

point.

Settlement.

Total / / / / /

(4). Description of allocation to remaining performance obligations

□Applicable √Not applicable

(5). Major contract changes or major transaction price adjustments

□Applicable √Not applicable

Other notes:

None

5. Investment income

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Items Amount incurred in the current period Amount incurred in the previous period Income from long-term equity investments accounted for by the cost method 420,000,000.00 100,000,000.00 Income from long-term equity investments accounted for by the equity method 367,918.38 -6,158.67 Investment income generated from the disposal of long-term equity investments 508,331.69 -3,595,210.35 is measured at fair value and its changes are included in the current period

Profit and loss Investment income obtained during the holding period of financial assets 1,120,000.00 960,000.00

Total 421,996,250.07 97,358,630.98Other instructions:

There are no major restrictions on the recovery of investment income this year

6. Others

□Applicable √Not applicable

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

20. Supplementary information

1. Detailed statement of non-recurring profits and losses for the current period

√Applicable □Not applicable

Unit: Yuan Currency: RMB

Item Amount Description of profits and losses from disposal of non-current assets, including accrued asset impairment. For details, see Note 7.73, Assets

-4,361,435.60 The write-off portion of the provision. The disposal proceeds are included in the current profit and loss as government subsidies, but they are not related to the company’s normal operations.

Closely related to the business, in compliance with national policies and regulations, and in accordance with the determined

The government enjoys the standard of 16,803,551.51 and has a continuous impact on the company’s profits and losses.

Except for subsidies

Except for effective hedging related to the company’s normal business operations

Outside of financial affairs, non-financial enterprises hold financial assets and financial liabilities

Gains and losses arising from changes in fair value and disposal of financial assets and funds

Profit and loss arising from financial liabilities

Occupation of funds collected from non-financial enterprises included in current profits and losses

3,472,348.16 fees

Gains and losses from entrusting others to invest or manage assets

Profit and loss from external entrusted loans

Due to force majeure factors, such as natural disasters

asset loss

For details, please refer to Note 7.5. The impairment provision for accounts receivable for which accounts receivable are separately tested for impairment is reversed 888,731.78

The company obtains investment from subsidiaries, associates and joint ventures

If the cost is less than when acquiring the investment, it shall enjoy the identifiable status of the invested unit.

Income from fair value of net assets

Subsidiaries resulting from business mergers under common control from the beginning of the period to the merger

Net profit and loss for the current period

Gains and losses on non-monetary asset exchanges

Debt restructuring gains and losses

A one-time event that occurs because the relevant business activities of the enterprise are no longer continuing.

Expenses, such as expenses for relocating employees, etc.

Adjustments to current profits and losses due to tax, accounting and other laws and regulations

one-time impact

Shares recognized in one go due to cancellation or modification of equity incentive plan

Pay the fee

For cash-settled share-based payments, after the vesting date,

Gains and losses arising from changes in fair value of employee compensation payable

Investment real estate that adopts the fair value model for subsequent measurement

Gains and losses arising from changes in fair value of assets

Gains from transactions where the transaction price appears to be unfair

Losses arising from contingencies unrelated to the company's normal business operations

benefit

Custody fee income from entrusted operations

Other non-operating income and expenses other than the above items -27,652,469.28 Other profit and loss items that meet the definition of non-recurring gains and losses

Less: Impact on income tax 388,673.56 Impact on minority shareholders’ equity (after tax) -1,152,819.81

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Sichuan Hebang Biotechnology Co., Ltd. 2025 Annual Report

Total -10,085,127.18

If the company determines items not listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Gains and Losses" as non-recurring gains and losses and is significant in amount, and if it defines the non-recurring gain or loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure by Companies that Offer Securities to the Public - Non-recurring Gains and Losses" as recurring gains and losses, the reasons should be explained. □Applicable √Not applicable

Other notes:

□Applicable √Not applicable

2. Return on net assets and earnings per share

√Applicable □Not applicable

Weighted average net assets Earnings per share

Profit during the reporting period

Yield (%) Basic earnings per share Diluted earnings per share Net attributable to the company’s ordinary shareholders

-2.95 -0.0672 -0.0522Profit

After deducting non-recurring gains and losses, attributable to

-2.90 -0.0660 -0.0512 Net profit of the company’s common shareholders

3. Differences in accounting data under domestic and foreign accounting standards

□Applicable √Not applicable

4. Others

□Applicable √Not applicable

Chairman: Zeng Xiaoping

Board approval submission date: April 21, 2026

Revision information

□Applicable √Not applicable

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