Group 1 - The company plans to establish an industrial fund in collaboration with a professional investment institution, Shanghai Dongzheng Capital Investment Co., Ltd, to foster growth and manage investment risks effectively [2][5] - The total scale of the industrial fund is set at 50 million yuan, with the company contributing 35 million yuan (70%) and Dongzheng Capital contributing 15 million yuan (30%) [2][4] - The partnership agreement has been signed, and the fund has been registered and obtained a business license as of September 2, 2025 [3][5] Group 2 - The fund has completed the necessary registration with the Asset Management Association of China and has received the Private Investment Fund Registration Certificate [5] - The fund is named "Jiaxing Lianhua Dongzheng Huaze Equity Investment Partnership (Limited Partnership)" and is managed by Shanghai Dongzheng Capital Investment Co., Ltd, with Bank of Communications as the custodian [5] - The initial contributions have been made, with the company contributing 7 million yuan and Dongzheng Capital contributing 3 million yuan, totaling 10 million yuan [4] Group 3 - The investment is expected to leverage the professional institution's resources while ensuring that it does not conflict with the company's main business operations [6] - The company emphasizes that this investment will not adversely affect its financial and operational status and will not harm the interests of the company and its shareholders [6] - The company will closely monitor the fund's management and investment projects to mitigate potential risks associated with market changes and operational management [6]

（文章来源：证券日报） 证券日报网讯 9月25日晚间，莲花控股发布公告称，公司拟与上海东方证券资本投资有限公司（专业投 资机构，简称"东证资本"）共同投资设立产业基金。产业基金总规模为50，000.00万元，东证资本作为 普通合伙人认缴出资额15，000.00万元，出资占比30.00%；公司作为有限合伙人以自有资金认缴出资额 35，000.00万元，出资占比70.00%。公司与东证资本签署《嘉兴莲花东证华泽股权投资合伙企业（有限 合伙）合伙协议》。基于对产业基金投资发展规划的考虑，公司对本次产业基金的原相关协议主要条款 作出相应的调整，并在本次投资完成后，嘉兴莲花东证华泽股权投资合伙企业（有限合伙）将纳入公司 合并报表范围。该产业基金已于2025年9月2日完成工商注册登记并取得了《营业执照》。近日，公司收 到基金管理人通知，该产业基金已在中国证券投资基金业协会完成备案手续，并取得了《私募投资基金 备案证明》。 ...

Core Viewpoint - Lianhua Holdings has established a 500 million yuan industry fund in collaboration with Dongzheng Capital, focusing on investments in the technology sector, particularly in the computing power industry chain, to enhance its strategic development and growth potential [1][2]. Group 1: Fund Establishment - The industry fund, named Jiaxing Lianhua Dongzheng Huaze Equity Investment Partnership, has a total scale of 500 million yuan, with Dongzheng Capital contributing 150 million yuan (30%) and Lianhua Holdings contributing 350 million yuan (70%) [1]. - The fund has completed registration and obtained the necessary licenses, with initial contributions of 7 million yuan from Lianhua Holdings and 3 million yuan from Dongzheng Capital [1]. Group 2: Strategic Implications - The establishment of the fund is part of Lianhua Holdings' strategy to leverage professional investment institutions' resources to foster growth points and enhance its investment capabilities [2]. - The fund will primarily invest in the technology sector, aiming to create synergies with Lianhua Holdings' computing power business, which has seen significant growth [2]. - Lianhua Holdings has actively expanded into the computing technology sector, establishing intelligent computing centers in 18 cities across China, particularly in the Yangtze River Delta region [2].

关于与专业投资机构共同投资设立产业基金 完成基金备案的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： | 投资标的名称 | 嘉兴莲花东证华泽股权投资合伙企业（有限 | | | | --- | --- | --- | --- | | | 合伙）（以下简称"产业基金"） | | | | 投资金额（万元） | 35,000.00 | | | | 投资进展阶段 | 完成 进展 | 终止 | 交易要素变更 | | 特别风险提示（如有请勾选） | | | | | | 募集失败 未能完成备案登记 | | | | | 提前终止 | | | | | 发生重大变更 | | | | | 其他：本次投资过程中可能受到包括但不 | | | | | 限于政策法规、宏观经济、行业周期、市场 | | | | | 变化、投资标的运营管理等多种因素的影响， | | | | | 存在基金投资收益不及预期的风险。 | | | 证券代码：600186 证券简称：莲花控股 公告编号：2025-076 莲花控股股份有限公司 一、合作 ...

莲花控股公告，公司与上海东方证券资本投资有限公司共同投资设立的嘉兴莲花东证华泽股权投资合伙 企业（有限合伙）已完成基金备案。产业基金总规模为5亿元，其中公司认缴出资额3.5亿元，占出资占 比70.00%。截至目前，公司已按出资比例实际首期出资700万元，东证资本首期出资300万元，合计 1000万元。该产业基金已于2025年9月2日完成工商注册登记并取得了《营业执照》。 ...

Core Viewpoint - The seasoning and fermentation products sector experienced a decline of 1.19% on September 24, with XD Haitian leading the drop [1] Group 1: Market Performance - The Shanghai Composite Index closed at 3853.64, up 0.83%, while the Shenzhen Component Index closed at 13356.14, up 1.8% [1] - The main funds in the seasoning and fermentation products sector saw a net outflow of 94.34 million yuan, while retail investors had a net inflow of 122 million yuan [2] Group 2: Individual Stock Performance - The top-performing stocks in the sector included: - Richen Co., Ltd. (603755) with a closing price of 31.57, up 2.87% and a trading volume of 26,100 lots [1] - Baoli Food (603170) closed at 14.48, up 2.40% with a trading volume of 39,000 lots [1] - Jialong Co., Ltd. (002495) closed at 2.61, up 1.16% with a trading volume of 182,200 lots [1] - XD Haitian (603288) closed at 38.80, down 0.61% with a trading volume of 136,900 lots [2] - Other notable stocks included: - Anji Food (603696) closed at 11.92, up 0.25% with a trading volume of 66,300 lots [2] - Zhongjing Food (300908) closed at 29.68, up 0.44% with a trading volume of 13,600 lots [2]

Market Overview - The seasoning and fermentation sector saw a slight increase of 0.04% on September 19, with Richen Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1] Stock Performance - Richen Co., Ltd. (603755) closed at 30.75, up 3.33% with a trading volume of 50,500 shares and a turnover of 152 million yuan [1] - ST Jiajia (002650) closed at 6.49, up 1.41% with a trading volume of 57,400 shares and a turnover of 37.19 million yuan [1] - Tianwei Food (603317) closed at 11.72, up 0.69% with a trading volume of 41,100 shares and a turnover of 47.95 million yuan [1] - Other notable stocks include Zhongju Gaoxin (600872) at 18.80, up 0.59%, and Anqi Yeast (600298) at 39.63, up 0.35% [1] Capital Flow - The seasoning and fermentation sector experienced a net outflow of 98.62 million yuan from institutional investors, while retail investors saw a net inflow of 7.02 million yuan [2] - The overall capital flow indicates a mixed sentiment, with institutional investors pulling back while retail investors showed some interest [2] Individual Stock Capital Flow - Anqi Yeast (600298) had a net inflow of 7.01 million yuan from institutional investors, but a net outflow of 30.54 million yuan from retail investors [3] - Richen Co., Ltd. (603755) saw a net inflow of 5.98 million yuan from institutional investors and a net outflow of 13.68 million yuan from retail investors [3] - Jiagang Co., Ltd. (002495) had a net inflow of 5.39 million yuan from retail investors, despite a net outflow from institutional investors [3]

[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [I. The Company's Board of Directors, Supervisory Board, Directors, Supervisors, and Senior Management Guarantee the Truthfulness, Accuracy, and Completeness of the Semi-Annual Report, Free from False Records, Misleading Statements, or Material Omissions, and Assume Individual and Joint Legal Responsibility](index=2&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%AE%9E%E6%80%A7%E3%80%81%E5%87%86%E7%A0%AE%E6%80%A7%E3%80%81%E5%AE%8C%E6%95%B4%E6%80%A7%EF%BC%8C%E4%B8%8D%E5%AD%98%E5%9C%A8%E8%99%9A%E5%81%87%E8%AE%B0%E8%BD%BD%E3%80%81%E8%AF%AF%E5%AF%BC%E6%80%A7%E9%99%88%E8%BF%B0%E6%88%96%E9%87%8D%E5%A4%A7%E9%81%97%E6%BC%8F%EF%BC%8C%E5%B9%B6%E6%89%BF%E6%8B%85%E4%B8%AA%E5%88%AB%E5%92%8C%E8%BF%9E%E5%B8%A6%E7%9A%84%E6%B3%95%E5%BE%8B%E8%B4%A3%E4%BB%BB%E3%80%82) The company's board, supervisory board, and senior management affirm the semi-annual report's truthfulness and completeness, taking legal responsibility for this unaudited financial report - The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[3](index=3&type=chunk) - This semi-annual report is **unaudited**[5](index=5&type=chunk) - Company's responsible person Li Houwen, head of accounting Yu Teng, and head of accounting department Qu Rui declare the financial report is true, accurate, and complete[5](index=5&type=chunk) [Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including the company name "Lianhua Holdings" and its main subsidiaries - Clarifies that "the Company, Company, Lianhua Holdings" all refer to "**Lianhua Holdings Co., Ltd.**"[12](index=12&type=chunk) - Lists definitions for major related parties or subsidiaries such as Guohou Asset, Liantai Investment, Tian'an Technology, and Lianhua Zixing[12](index=12&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [I. Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) Introduces Lianhua Holdings Co., Ltd.'s basic information, including its Chinese name, abbreviation, and legal representative Li Houwen - The company's Chinese name is Lianhua Holdings Co., Ltd., abbreviated as **Lianhua Holdings**, with **Li Houwen** as the legal representative[14](index=14&type=chunk) [II. Contact Persons and Contact Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) Provides contact information for the company's Board Secretary Gu Youqun and Securities Affairs Representative Zhao Hangxiao - Board Secretary is **Gu Youqun**, Securities Affairs Representative is **Zhao Hangxiao**, both with the contact address at No. 18 Yinghe Road, Xiangcheng City, Henan Province[15](index=15&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) Outlines two changes in the company's registered address in August 2022 and May 2024, finally settling at No. 18 Yinghe Road - The company's registered address changed in August 2022 and May 2024, with the final address being **No. 18 Yinghe Road, Xiangcheng City, Henan Province**[16](index=16&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) Discloses the company's designated information disclosure newspapers, website address, and report custody location - The company's designated information disclosure newspapers are "**China Securities Journal**," "**Shanghai Securities News**," "**Securities Daily**," and the report website is **http://www.sse.com.cn**[17](index=17&type=chunk) [V. Company Stock Overview](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) Introduces the company's A-shares listed on the Shanghai Stock Exchange, with stock abbreviation "Lianhua Holdings" and code "600186" - The company's A-shares are listed on the Shanghai Stock Exchange, stock abbreviation "**Lianhua Holdings**," code "**600186**," previously "**Lianhua Health**"[18](index=18&type=chunk) [VII. Company's Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) Operating revenue, total profit, net profit, and EPS significantly increased due to higher sales and improved gross margins, while operating cash flow substantially decreased 2025 H1 Key Accounting Data Comparison | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,620,757,763.22 yuan | 1,221,574,142.81 yuan | 32.68 | | Total Profit | 224,836,053.51 yuan | 138,680,263.39 yuan | 62.13 | | Net Profit Attributable to Parent Company Shareholders | 161,347,721.01 yuan | 100,837,212.58 yuan | 60.01 | | Net Cash Flow from Operating Activities | -122,046,458.58 yuan | 238,255,663.47 yuan | -151.22 | | Net Assets Attributable to Parent Company Shareholders (Period-end) | 1,811,845,119.78 yuan | 1,697,120,428.25 yuan | 6.76 | | Total Assets (Period-end) | 3,128,258,879.73 yuan | 3,639,292,952.43 yuan | -14.04 | 2025 H1 Key Financial Indicators Comparison | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.0989 | 0.0562 | 75.98 | | Diluted Earnings Per Share (yuan/share) | 0.0989 | 0.0562 | 75.98 | | Weighted Average Return on Net Assets (%) | 9.08 | 6.35 | Increase of 2.73 percentage points | - Operating revenue, total profit, net profit, and EPS all increased due to **higher product sales** and **improved gross profit margins**[22](index=22&type=chunk) [IX. Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) The company's total non-recurring gains and losses amounted to **-54,619.91 yuan**, primarily from asset disposal, government grants, and other non-operating items 2025 H1 Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Disposal gains/losses of non-current assets | -1,089,468.53 | | Government grants recognized in current profit or loss | 661,385.00 | | Other non-operating income and expenses | -33,916.57 | | Income tax impact | -3,229.04 | | Impact on minority interests (after tax) | -404,151.15 | | **Total** | **-54,619.91** | [X. Companies with Equity Incentives or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting the Impact of Share-Based Payments](index=7&type=section&id=%E5%8D%81%E3%80%81%E5%AD%98%E5%9C%A8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E7%9A%84%E5%85%AC%E5%8F%B8%E5%8F%AF%E9%80%89%E6%8B%A9%E6%8A%AB%E9%9C%B2%E6%89%A3%E9%99%A4%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98%E5%BD%B1%E5%93%8D%E5%90%8E%E7%9A%84%E5%87%80%E5%88%A9%E6%B6%A6) Discloses net profit after deducting the impact of share-based payments, which was **166,494,221.01 yuan** for the current period, a **65.11%** increase year-on-year Net Profit After Deducting Impact of Share-Based Payments | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Impact of Share-Based Payments | 166,494,221.01 yuan | 100,837,212.58 yuan | 65.11 | [Management Discussion and Analysis](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [I. Explanation of the Company's Industry and Main Business During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) Operating in the rigid-demand seasoning industry, the company's core product, "Lianhua MSG," anchors a diversified portfolio, extensive sales network, and robust R&D platform - The company operates in the food manufacturing industry, specifically the **seasoning industry**, characterized by rigid market demand and a favorable competitive landscape[30](index=30&type=chunk) - The flagship product "**Lianhua Monosodium Glutamate**" is recognized as "Green Food," forming a diversified product system including amino acid seasonings, compound seasonings, new compound seasonings, liquid seasonings, as well as flour, sugar, and beverages[30](index=30&type=chunk) - The company boasts over **30 branches**, **3,000 distributors**, and **10,000 clients**, with a sales network covering the entire country and exporting to over **70 countries and regions**[30](index=30&type=chunk) [II. Discussion and Analysis of Operations](index=9&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In H1 2025, the company advanced its "Brand Revival Strategy" and "Consumption + Technology Dual-Driven Strategy," achieving new breakthroughs in business scale and efficiency, and exploring commercial applications for computing power-related businesses - The company, guided by its "**Brand Revival Strategy**," consolidated its fundamental advantages and focused on "six new" initiatives to expand and strengthen its main business[31](index=31&type=chunk) - Deeply promoted the "**Consumption + Technology Dual-Driven Strategy**," with the consumption sector focusing on seasonings and beverages, and the technology sector innovating business models around computing power, algorithms, intelligent agents, and semiconductor materials[31](index=31&type=chunk) - The company and Zhejiang University Shaoxing Research Institute obtained an invention patent for a flame-retardant build-up film used in integrated circuit chip packaging, currently exploring commercial applications[31](index=31&type=chunk) - Solidified the "**123456**" operational management system and built a "**Six Lianhua**" corporate culture to provide organizational and cultural guarantees for strategy implementation[32](index=32&type=chunk) [III. Analysis of Core Competitiveness During the Reporting Period](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness lies in its brand, market position, sales network, and technology, featuring the "Lianhua" trademark, a dominant MSG market position, a comprehensive sales network, and a national-level R&D platform with leading proprietary technologies - The company owns the "**Lianhua**" well-known trademark, being the only MSG industry enterprise selected as a national trademark strategy implementation demonstration enterprise[34](index=34&type=chunk) - Holds a **dominant position in the MSG market**, with small and medium-sized MSG packaging leading in the terminal market, and possesses the largest chicken bouillon cube export base in China[35](index=35&type=chunk) - Established a mature and stable domestic and international seasoning food sales channel and a comprehensive service system[35](index=35&type=chunk) - Possesses a **national-level enterprise technology center** and a postdoctoral research workstation, with numerous domestically leading proprietary technologies in MSG and chicken bouillon cube production and technological processes[35](index=35&type=chunk) [IV. Major Operating Conditions During the Reporting Period](index=10&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) Revenue and costs grew significantly, with rising selling and financial expenses; asset-liability structure adjusted, increasing receivables and prepayments while reducing contract liabilities and long-term debt, alongside equity and private fund investments [(I) Analysis of Main Business](index=10&type=section&id=(%E4%B8%80)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) 2025 H1 Financial Statement Related Account Changes Analysis | Account | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,620,757,763.22 | 1,221,574,142.81 | 32.68 | | Operating Cost | 1,163,899,273.05 | 936,835,570.42 | 24.24 | | Selling Expenses | 129,726,243.44 | 71,594,755.21 | 81.20 | | Administrative Expenses | 55,166,062.74 | 51,075,245.49 | 8.01 | | Financial Expenses | 13,329,540.22 | 36,229.29 | 36,692.17 | | R&D Expenses | 19,711,389.22 | 14,210,536.84 | 38.71 | | Net Cash Flow from Operating Activities | -122,046,458.58 | 238,255,663.47 | -151.22 | | Net Cash Flow from Investing Activities | 182,085,444.54 | -368,112,502.57 | Not Applicable | | Net Cash Flow from Financing Activities | -252,599,694.02 | 364,350,448.42 | -169.33 | - Selling expenses significantly increased primarily due to higher e-commerce sales revenue, platform service fees, and promotional expenses[38](index=38&type=chunk) - Financial expenses substantially rose mainly due to increased bank loans and higher interest expenses[38](index=38&type=chunk) - Net cash flow from operating activities significantly decreased, primarily due to increased purchases of goods and services driven by higher sales volume[38](index=38&type=chunk) [(III) Analysis of Assets and Liabilities](index=11&type=section&id=(%E4%B8%89)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) 2025 H1 Asset and Liability Status Changes | Item Name | Current Period End Amount (yuan) | Current Period End % of Total Assets | Prior Year End Amount (yuan) | Prior Year End % of Total Assets | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 164,344,966.65 | 5.25 | 122,361,336.15 | 3.36 | 34.31 | Increased receivables from new product businesses | | Receivables Financing | 9,723,553.99 | 0.31 | 1,643,289.64 | 0.05 | 491.71 | Increased sales bill collections | | Prepayments | 159,138,745.21 | 5.09 | 98,170,467.32 | 2.70 | 62.10 | Increased payments for goods purchased | | Other Receivables | 51,863,802.88 | 1.66 | 13,171,036.79 | 0.36 | 293.77 | Increased intercompany payments | | Notes Payable | 361,677,750.00 | 11.56 | 595,266,700.00 | 16.36 | -39.24 | Increased spot payments for MSG purchases, reduced company bill business | | Contract Liabilities | 102,416,153.72 | 3.27 | 309,813,410.04 | 8.51 | -66.94 | 2025 "Open Door Red" policy led to increased shipments of advance receipts in the current year, reducing advance receipts | | Taxes Payable | 43,222,983.23 | 1.38 | 20,685,334.16 | 0.57 | 108.95 | Increased revenue and profit, increased sales taxes | | Long-term Borrowings | 251,040,626.81 | 8.02 | 443,156,990.00 | 12.18 | -43.35 | Repayment of borrowings, reclassified to liabilities due within one year | [(IV) Analysis of Investment Status](index=12&type=section&id=(%E5%9B%9B)%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) - In April 2025, the company increased its subscribed capital in Hangzhou Yugui Trading Co., Ltd. by **25.03 million yuan**, raising its shareholding from **30% to 83.43%**[42](index=42&type=chunk) 2025 H1 Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (yuan) | Fair Value Change Gain/Loss for Current Period (yuan) | Current Period Purchase Amount (yuan) | Current Period Sale/Redemption Amount (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 15,653,056.97 | 2,194,718.91 | 36,851,739.22 | 30,124,256.55 | 25,370,145.74 | | Bonds | 113,046,000.00 | - | 12,663,323,000.00 | 12,682,683,347.06 | 92,214,369.69 | | Funds | 190,095.00 | -1,872.70 | 47,042,812.41 | 47,217,346.83 | 15,722.18 | | **Total** | **128,889,151.97** | **2,192,846.21** | **12,747,217,551.63** | **12,760,024,950.44** | **117,600,237.61** | - The company co-invested with Shanghai Orient Securities Capital Investment Co., Ltd. to establish an industrial M&A fund with a total subscribed capital of **500 million yuan**, of which the company subscribed **350 million yuan**, accounting for **70.00%**[48](index=48&type=chunk) [(VI) Analysis of Major Holding and Participating Companies](index=17&type=section&id=(%E5%85%AD)%20%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Major Subsidiary Financial Data (2025 H1) | Company Name | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Henan Lianhua Food Trading Co., Ltd. | Pre-packaged food | 3,000,000.00 | 161,697,973.04 | -499,479,634.27 | 1,046,988,735.84 | 2,621,994.12 | 4,589,395.70 | | Zhejiang Lianhua Zixing Smart Computing Technology Co., Ltd. | Information transmission, software and information technology services | 150,000,000.00 | 556,921,962.27 | 141,764,760.25 | 69,277,282.64 | 3,183,749.35 | 1,451,873.79 | | Hangzhou Yugui Trading Co., Ltd. | Food sales, pre-packaged food sales, internet sales, information technology consulting services | 30,000,000.00 | 29,771,264.70 | 26,197,029.98 | 15,095,005.09 | -1,394,638.02 | -1,402,834.86 | [V. Other Disclosure Matters](index=18&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company faces risks from intensifying market competition, food safety control, and challenges in attracting and retaining high-end talent - The company faces market risks, including a wide variety of seasonings and snack foods, increased customer demands, and misleading publicity regarding MSG food safety[52](index=52&type=chunk) - There are food safety control risks; despite strict evaluation and inspection supervision mechanisms, random factors may still arise in procurement, transportation, production, storage, and sales[52](index=52&type=chunk) - The company faces human resource risks, as intense industry competition and rising labor costs may create pressure to attract and retain high-end talent[52](index=52&type=chunk) [Corporate Governance, Environment, and Society](index=19&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) [I. Changes in the Company's Directors, Supervisors, and Senior Management](index=19&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Senior management members Li Tao and Cao Jiasheng resigned for personal reasons, while Tang Xinyu was appointed Chief Digital Marketing Officer - Mr. Li Tao resigned from his positions as Senior Vice President and Chief Digital Marketing Officer[55](index=55&type=chunk) - Mr. Tang Xinyu was appointed as the company's Chief Digital Marketing Officer[55](index=55&type=chunk) - Mr. Cao Jiasheng resigned from his positions as Director, Senior Vice President, and Chief Technology Officer[56](index=56&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=19&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company has no profit distribution or capital reserve conversion plan for this semi-annual period - The company has no profit distribution or capital reserve conversion plan for this reporting period[57](index=57&type=chunk) [III. Status and Impact of the Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures](index=19&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) The company disclosed the exercise results and share transfer registration for its 2023 stock option and restricted stock incentive plan, and announced the implementation of canceling some stock options and repurchasing and canceling some restricted shares - The company disclosed the announcement regarding the exercise results and share transfer registration for the first exercise period of its **2023 stock option and restricted stock incentive plan**[58](index=58&type=chunk) - The company announced the implementation of canceling some stock options and repurchasing and canceling some restricted shares[58](index=58&type=chunk) [Significant Matters](index=21&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [I. Fulfillment of Commitments](index=21&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) Both the company and equity incentive recipients promptly and strictly fulfilled commitments related to equity incentives, including the company not providing financial assistance and recipients returning benefits obtained due to false records - The company committed not to provide loans or any form of financial assistance to incentive recipients and has **promptly and strictly fulfilled** this[62](index=62&type=chunk) - Incentive recipients committed to returning benefits obtained if the company's information disclosure documents contained false records, and this has been **promptly and strictly fulfilled**[62](index=62&type=chunk) [VII. Material Litigation and Arbitration Matters](index=23&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) The company was involved in a creditor subrogation dispute related to Zhengzhou Dongfang Huifu Real Estate Co., Ltd., with a case amount of **3,734,173.25 yuan**, currently in the stage of reconsideration maintenance and resumption of enforcement - The company is involved in a creditor subrogation dispute related to Zhengzhou Dongfang Huifu Real Estate Co., Ltd. and Henan Green Chemical Co., Ltd[64](index=64&type=chunk) - The case amount is **3,734,173.25 yuan**, with current progress being reconsideration maintenance and receipt of a notice to resume enforcement[64](index=64&type=chunk) [XI. Material Contracts and Their Performance](index=26&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company's total guarantee balance for subsidiaries was **352,214,500.00 yuan**, accounting for **19.44%** of net assets, and all guarantees were provided to entities with an asset-liability ratio exceeding **70%** Company's Total Guarantee Amount (End of 2025 H1) | Indicator | Amount (yuan) | | :--- | :--- | | Total Guarantee Balance for Subsidiaries at Period-end (B) | 352,214,500.00 | | Total Guarantees (A+B) | 352,214,500.00 | | Total Guarantees as % of Company's Net Assets | 19.44 | | Debt Guarantees Provided Directly or Indirectly to Guaranteed Entities with Asset-Liability Ratio Exceeding 70% (D) | 352,214,500.00 | | Total of Above Three Guarantee Amounts (C+D+E) | 352,214,500.00 | [XII. Explanation of Progress in Use of Raised Funds](index=27&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E8%BF%9B%E5%B1%95%E8%AF%B4%E6%98%8E) The company's total raised funds amounted to **993.5452 million yuan**, with cumulative investment of **950.2605 million yuan**, and **419.4997 million yuan** invested this year; some projects were scaled down or terminated, and idle funds were used to supplement working capital [(I) Overall Use of Raised Funds](index=27&type=section&id=(%E4%B8%80)%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E6%95%B4%E4%BD%93%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) Overall Use of Raised Funds (Unit: 10,000 yuan) | Source of Raised Funds | Total Raised Funds (1) | Total Committed Investment of Raised Funds (2) | Cumulative Investment at Period-end (4) | Amount Invested This Year (5) | Investment Progress (%) (6)=(4)/(2) | | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of Shares to Specific Objects | 99,354.52 | 97,615.82 | 95,026.05 | 41,949.97 | 44.15 | | **Total** | **99,354.52** | **97,615.82** | **95,026.05** | **41,949.97** | **44.15** | - The company has reduced the investment scale and closed the "**Wheat Flour Series Products Project**"[75](index=75&type=chunk) [(II) Details of Raised Fund Investment Projects](index=27&type=section&id=(%E4%BA%8C)%E5%8B%9F%E6%8A%95%E9%A1%B9%E7%9B%AE%E6%98%8E%E7%BB%86) - The "**Annual Production of 100,000 Tons of Commercial MSG and 50,000 Tons of Compound Seasonings Advanced Technology Transformation Project**" has been closed, with **100% investment progress**[77](index=77&type=chunk) - The "**Bio-fermentation Products Project**" and "**Supporting Bio-fermentation Products Project**" were terminated due to intensified industry competition and uncertain returns[79](index=79&type=chunk) - The "**Wheat Flour Series Products Project**" had its investment scale reduced and was closed due to intensified market competition and difficulty in achieving ideal economic benefits in the short term[79](index=79&type=chunk) [(III) Changes or Termination of Raised Fund Investment Projects During the Reporting Period](index=31&type=section&id=(%E4%B8%89)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8B%9F%E6%8A%95%E5%8F%98%E6%9B%B4%E6%88%96%E7%BB%88%E6%AD%A2%E6%83%85%E5%86%B5) Changes in Raised Fund Investment Projects (Unit: 10,000 yuan) | Project Name Before Change | Change Date (First Announcement Disclosure Date) | Change Type | Total Committed Investment of Raised Funds Before Change/Termination | Total Raised Funds Invested Before Change/Termination | | :--- | :--- | :--- | :--- | :--- | | Wheat Flour Series Products Project | January 1, 2025 | Reduction in Raised Funds Investment Amount | 10,000.00 | 2,387.33 | - The reason for the change was intensified competition in the casual flour products industry, reducing the feasibility of continued investment, leading to a decision to reduce investment and close the project to mitigate risks and protect shareholder interests[83](index=83&type=chunk) [(IV) Other Circumstances Regarding the Use of Raised Funds During the Reporting Period](index=32&type=section&id=(%E5%9B%9B)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E7%9A%84%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) - The company used idle raised funds not exceeding **200 million yuan** to temporarily supplement working capital, aiming to improve efficiency and reduce financial expenses[84](index=84&type=chunk) - As of June 30, 2025, the unreturned idle raised funds amounted to **200 million yuan**, with the usage period not exceeding 12 months[84](index=84&type=chunk) [XIII. Explanation of Other Significant Matters](index=32&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company approved a share repurchase plan on October 30, 2024, intending to repurchase shares worth no less than **110 million yuan** and no more than **150 million yuan** for employee stock ownership plans or equity incentives; as of July 31, 2025, **24,967,600 shares** have been repurchased, totaling **124.85 million yuan** - The company plans to repurchase shares through centralized bidding, with a total amount of no less than **110 million yuan** and no more than **150 million yuan**, for employee stock ownership plans or equity incentives[85](index=85&type=chunk) - As of July 31, 2025, a cumulative total of **24,967,600 shares** have been repurchased, accounting for **1.39%** of the total share capital, with a total payment of **124,849,586.63 yuan**[86](index=86&type=chunk) [Share Changes and Shareholder Information](index=33&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [I. Share Capital Changes](index=33&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's total shares decreased by **570,000 shares** due to the repurchase and cancellation of some restricted shares, changing from **1,794,572,141 shares** to **1,794,002,141 shares** Share Capital Change Table (Unit: shares) | | Quantity Before This Change | % Before This Change | Increase/Decrease in This Change (+,-) Subtotal | Quantity After This Change | % After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 7,861,700 | 0.44 | -570,000 | 7,291,700 | 0.41 | | II. Unrestricted Tradable Shares | 1,786,710,441 | 99.56 | 0 | 1,786,710,441 | 99.59 | | **III. Total Shares** | **1,794,572,141** | **100.00** | **-570,000** | **1,794,002,141** | **100.00** | - The company repurchased and canceled **570,000 restricted shares**, leading to a decrease in total share capital[90](index=90&type=chunk) [II. Shareholder Information](index=34&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the total number of common shareholders was **174,900**; the top two shareholders were Wuhu Liantai Investment Management Center (Limited Partnership) and Zhoukou Zhongkong Investment Co., Ltd., holding **10.06%** and **9.29%** respectively; the company's special repurchase securities account held **32,484,300 shares**, accounting for **1.81%** of the total share capital - As of the end of the reporting period, the total number of common shareholders was **174,900**[93](index=93&type=chunk) Top Ten Shareholders' Shareholding as of the End of the Reporting Period (Partial) | Shareholder Name | Shares Held at Period-end (shares) | Percentage (%) | Share Status | Quantity (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Wuhu Liantai Investment Management Center (Limited Partnership) | 180,509,529 | 10.06 | Pledged | 52,500,000 | Domestic Non-State-Owned Legal Person | | Zhoukou Zhongkong Investment Co., Ltd. | 166,666,666 | 9.29 | None | 0 | State-Owned Legal Person | | Zhoukou Innovation Investment Group Co., Ltd. | 32,669,246 | 1.82 | None | 0 | State-Owned Legal Person | - As of the end of the reporting period, the company's special repurchase securities account held **32,484,300 shares**, accounting for **1.81%** of the company's total share capital[96](index=96&type=chunk) [III. Information on Directors, Supervisors, and Senior Management](index=36&type=section&id=%E4%B8%89%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) Former Senior Vice President and Chief Digital Marketing Officer Mr. Li Tao's shareholding decreased by **120,000 shares** due to the repurchase and cancellation of restricted shares Changes in Shareholdings of Directors, Supervisors, and Senior Management (Partial) | Name | Position | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | Change in Shares During Reporting Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Tao (Resigned) | Senior Vice President, Chief Digital Marketing Officer | 300,000 | 180,000 | 120,000 | Repurchase and cancellation of restricted shares | [Bond-Related Information](index=38&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=38&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period - The company had no corporate bonds or non-financial enterprise debt financing instruments[103](index=103&type=chunk) [II. Convertible Corporate Bonds](index=38&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E6%83%85%E5%86%B5) The company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds[103](index=103&type=chunk) [Financial Report](index=39&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [I. Audit Report](index=39&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual report is unaudited - This semi-annual report is **unaudited**[5](index=5&type=chunk) [II. Financial Statements](index=39&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) Provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, reflecting financial position and operating results - Financial statements include consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[105](index=105&type=chunk)[108](index=108&type=chunk)[112](index=112&type=chunk)[116](index=116&type=chunk)[123](index=123&type=chunk)[133](index=133&type=chunk) [III. Company Basic Information](index=63&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Details the company's registered address, organizational form, registered capital, legal representative, industry, business scope, equity structure, and ultimate controlling party as of June 30, 2025 - The company's registered address is No. 18 Yinghe Road, Xiangcheng City, Henan Province, with a registered capital of **1,794,002,141.00 yuan**, and **Li Houwen** as the legal representative[138](index=138&type=chunk) - The company belongs to the **food manufacturing industry**, with a business scope covering food sales, computer system services, data processing services, etc[138](index=138&type=chunk) - As of June 30, 2025, Wuhu Liantai Investment Management Center (Limited Partnership) is the controlling shareholder, holding **10.06%**, and **Mr. Li Houwen** is the actual controller[139](index=139&type=chunk) - Main businesses include the production and sale of MSG, chicken essence, computing power services, flour, organic fertilizer, cooking wine, and drinking water[141](index=141&type=chunk) [IV. Basis of Financial Statement Preparation](index=64&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and CSRC regulations, using the accrual basis of accounting and historical cost measurement - Financial statements are prepared on a **going concern basis**, adhering to enterprise accounting standards and CSRC information disclosure regulations[142](index=142&type=chunk) - Accounting is based on the **accrual method** and **historical cost measurement**[142](index=142&type=chunk) - The company possesses the ability to continue as a going concern for at least 12 months from the end of this reporting period[143](index=143&type=chunk) [V. Significant Accounting Policies and Accounting Estimates](index=64&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's accounting policies and estimates, covering compliance with standards, accounting period, business combinations, financial instruments, inventories, fixed assets, intangible assets, revenue recognition, government grants, and leases - Financial statements comply with enterprise accounting standards requirements, accurately and completely reflecting the company's financial position, operating results, and cash flows[144](index=144&type=chunk) - Clarifies key accounting policies such as business combinations (under common control and not under common control), consolidated financial statement preparation, financial instrument classification and measurement, inventory impairment provisions, fixed asset depreciation, intangible asset amortization, and capitalization of research and development expenditures[149](index=149&type=chunk)[153](index=153&type=chunk)[161](index=161&type=chunk)[171](index=171&type=chunk)[191](index=191&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk) - Details revenue recognition and measurement methods, i.e., recognizing revenue when the customer obtains control of the goods, distinguishing between performance obligations satisfied over time and at a point in time[211](index=211&type=chunk)[212](index=212&type=chunk) - Explains accounting treatment for government grants, distinguishing between asset-related and income-related grants, using the gross method[214](index=214&type=chunk)[215](index=215&type=chunk) - For lease accounting, the lessee recognizes right-of-use assets and lease liabilities, while the lessor distinguishes between finance leases and operating leases[220](index=220&type=chunk)[224](index=224&type=chunk) [VI. Taxation](index=82&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) Discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax; the company is exempt from VAT on organic fertilizer sales and enjoys a **90%** corporate income tax reduction for compound fertilizer products Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate (%) | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Balance after deducting deductible input tax from output tax | 0, 3, 6, 9, 13 | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7 | | Education Surcharge | Amount of turnover tax payable | 3 | | Local Education Surcharge | Amount of turnover tax payable | 2 | | Corporate Income Tax | Taxable income | 25 | - The company's sales of **compound fertilizer products are exempt from VAT**[228](index=228&type=chunk) - The company's organic-inorganic compound fertilizer products, produced using MSG production wastewater, enjoy a corporate income tax reduction of **90%**[228](index=228&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=83&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) Detailed notes on consolidated financial statement items, including assets, liabilities, equity, revenue, costs, and expenses, reflecting period-end balances and changes - Monetary funds balance at period-end was **1,297,697,364.81 yuan**, a decrease from the beginning of the period[230](index=230&type=chunk) - Accounts receivable balance at period-end was **164,344,966.65 yuan**, an increase of **34.31%** from the beginning of the period, mainly due to increased receivables from new product businesses[40](index=40&type=chunk)[231](index=231&type=chunk) - Inventory book value at period-end was **183,633,530.82 yuan**, with raw materials and inventory goods accounting for a larger proportion[259](index=259&type=chunk) - Long-term equity investment book value at period-end was **36,825,471.11 yuan**, with full impairment provision made for the investment in Henan Lianhua Tian'an Food Industry Co., Ltd[267](index=267&type=chunk) - Fixed assets book value at period-end was **656,668,829.08 yuan**, a decrease from the beginning of the period[275](index=275&type=chunk) - Short-term borrowings balance at period-end was **130,131,333.34 yuan**, a decrease from the beginning of the period[296](index=296&type=chunk) - Contract liabilities balance at period-end was **102,416,153.72 yuan**, a significant decrease of **66.94%** from the beginning of the period, mainly due to increased shipments of advance receipts in the current year from the 2025 "Open Door Red" policy[40](index=40&type=chunk)[304](index=304&type=chunk) - Operating revenue for the current period was **1,620,757,763.22 yuan**, a year-on-year increase of **32.68%**, with MSG and other amino acid seasonings contributing the most[37](index=37&type=chunk)[334](index=334&type=chunk) - Selling expenses for the current period were **129,726,243.44 yuan**, a year-on-year increase of **81.20%**, mainly due to increased e-commerce platform service fees and promotional expenses[37](index=37&type=chunk)[336](index=336&type=chunk) - Financial expenses for the current period were **13,329,540.22 yuan**, a year-on-year increase of **36,692.17%**, mainly due to increased bank loans leading to higher interest expenses[37](index=37&type=chunk)[342](index=342&type=chunk) - Net cash flow from operating activities was **-122,046,458.58 yuan**, a year-on-year decrease of **151.22%**, primarily due to increased purchases of goods and services driven by higher sales volume[37](index=37&type=chunk)[359](index=359&type=chunk) [VIII. Research and Development Expenses](index=129&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) The company's total R&D expenses amounted to **19,711,389.22 yuan**, a **38.71%** increase year-on-year, primarily invested in employee compensation and material costs to actively develop new products R&D Expenses by Nature of Expense | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Employee Compensation | 7,432,454.28 | 3,357,056.55 | | Materials | 10,282,122.56 | 10,099,057.33 | | Depreciation | 149,260.43 | 135,046.13 | | Other | 1,847,551.95 | 619,376.83 | | **Total** | **19,711,389.22** | **14,210,536.84** | - R&D expenses increased by **38.71%** year-on-year, mainly due to increased investment in R&D projects and active development of new products[38](index=38&type=chunk) [IX. Changes in Consolidation Scope](index=129&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, the company had no transactions or events involving business combinations under non-common control, common control, reverse acquisitions, or disposal of subsidiaries leading to loss of control - During the reporting period, the company had no business combinations under non-common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries leading to loss of control[366](index=366&type=chunk)[367](index=367&type=chunk) [X. Interests in Other Entities](index=130&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) Discloses the company's interests in **20 subsidiaries**, including shareholding percentages and acquisition methods, as well as key financial information for **4 important non-wholly-owned subsidiaries** and interests in joint ventures or associates [(1). Composition of the Enterprise Group](index=130&type=section&id=(1).%E4%BC%81%E4%B8%9A%E9%9B%86%E5%9B%A2%E7%9A%84%E6%9E%84%E6%88%90) - The company owns **20 subsidiaries**, including Henan Lianhua Food Trading Co., Ltd., Henan Lianhua Flour Co., Ltd., and Zhejiang Lianhua Zixing Smart Computing Technology Co., Ltd[368](index=368&type=chunk)[369](index=369&type=chunk)[370](index=370&type=chunk) - Subsidiary business nature is diversified, including food manufacturing, logistics, agriculture, beverages, and technology services[368](index=368&type=chunk)[369](index=369&type=chunk)[370](index=370&type=chunk) [(2). Important Non-Wholly-Owned Subsidiaries](index=134&type=section&id=(2).%E9%87%8D%E8%A6%81%E7%9A%84%E9%9D%9E%E5%85%A8%E8%B5%84%E5%AD%90%E5%85%AC%E5%8F%B8) Minority Shareholder Equity Information of Important Non-Wholly-Owned Subsidiaries | Subsidiary Name | Minority Shareholding Percentage (%) | Current Period Profit/Loss Attributable to Minority Shareholders (yuan) | Minority Shareholder Equity Balance at Period-end (yuan) | | :--- | :--- | :--- | :--- | | Henan Lianhua Food Trading Co., Ltd. | 46.67 | 2,141,870.51 | -233,107,384.48 | | Henan Lianhua International Logistics Co., Ltd. | 48 | 0 | 3,926,550.68 | | Zhejiang Lianhua Zixing Smart Computing Technology Co., Ltd. | 36 | -251,071.05 | 49,899,729.80 | | Hangzhou Yugui Trading Co., Ltd. | 16.57 | -232,403.44 | 4,339,973.37 | [(3). Key Financial Information of Important Non-Wholly-Owned Subsidiaries](index=134&type=section&id=(3).%E9%87%8D%E8%A6%81%E9%9D%9E%E5%85%A8%E8%B5%84%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E4%BF%A1%E6%81%AF) Henan Lianhua Food Trading Co., Ltd. Key Financial Information (2025 H1) | Indicator | Period-end Balance (yuan) | Period-beginning Balance (yuan) | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 161,697,973.04 | 446,068,451.67 | - | - | | Total Liabilities | 661,177,607.31 | 950,137,480.64 | - | - | | Operating Revenue | - | - | 1,046,988,735.84 | 917,573,879.72 | | Net Profit | - | - | 4,589,394.70 | 4,275,082.74 | Zhejiang Lianhua Zixing Smart Computing Technology Co., Ltd. Key Financial Information (2025 H1) | Indicator | Period-end Balance (yuan) | Period-beginning Balance (yuan) | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 556,921,962.27 | 731,857,472.12 | - | - | | Total Liabilities | 415,157,202.02 | 584,908,011.21 | - | - | | Operating Revenue | - | - | 69,277,282.64 | 22,419,889.87 | | Net Profit | - | - | 1,451,873.79 | -2,042,514.10 | [(3). Important Joint Ventures or Associates](index=137&type=section&id=(3).%E9%87%8D%E8%A6%81%E7%9A%84%E5%90%88%E8%90%A5%E4%BC%81%E4%B8%9A%E6%88%96%E8%81%94%E8%90%A5%E4%BC%81%E4%B8%9A) Important Joint Ventures or Associates | Joint Venture or Associate Name | Business Nature | Shareholding Percentage (%) (Direct) | Accounting Method | | :--- | :--- | :--- | :--- | | Henan Lianhua Tian'an Food Industry Co., Ltd. | Food processing | 49.00 | Equity method | | Henan Lianhua Sugar Industry Co., Ltd. | Food processing | 43.00 | Equity method | [XI. Government Grants](index=138&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) The company received total government grants of **661,385.00 yuan**, all income-related and recognized as non-operating income in the current period Liability Items Involving Government Grants (2025 H1) | Financial Statement Item | New Grant Amount for Current Period (yuan) | Amount Recognized as Non-Operating Income for Current Period (yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | | Provincial Single Champion Enterprise Award | 300,000.00 | 300,000.00 | Income-related | | Tax Growth Advanced Enterprise Award | 311,385.00 | 311,385.00 | Income-related | | Statistics Bureau Project Bonus | 50,000.00 | 50,000.00 | Income-related | | **Total** | **661,385.00** | **661,385.00** | / | - Total government grants recognized in current period profit or loss amounted to **661,385.00 yuan**, all of which were income-related[380](index=380&type=chunk) [XII. Risks Related to Financial Instruments](index=139&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces market, credit, and liquidity risks, managed through policies monitoring foreign currency settlements, bank borrowing interest rates, customer creditworthiness, and cash and cash equivalents - The company faces market risks, including foreign exchange risk (overseas business settlements), interest rate risk (bank borrowings), and other price risks[381](index=381&type=chunk) - Credit risk primarily arises from bank deposits, accounts receivable, other receivables, and notes receivable; the company controls this by assessing customer creditworthiness and setting credit terms[382](index=382&type=chunk) - Liquidity risk is managed by maintaining sufficient cash and cash equivalents, monitoring bank borrowing utilization, and securing commitments for backup funding[382](index=382&type=chunk) [XIII. Disclosure of Fair Value](index=141&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) During the reporting period, the company did not disclose fair value information for assets and liabilities measured at fair value at the end of the period, nor the basis for determining market prices, valuation techniques, and significant parameters for continuous and non-continuous Level 1, Level 2, and Level 3 fair value measurement items - During the reporting period, the company did not disclose fair value information for assets and liabilities measured at fair value at the end of the period[384](index=384&type=chunk) [XIV. Related Parties and Related Party Transactions](index=141&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) Discloses the company's parent company, subsidiaries, joint ventures, associates, and other related parties; related party transactions included goods procurement and sales, and guarantees for subsidiaries; key management personnel compensation totaled **9,058,054.43 yuan** 1. Information on the Company's Parent Company](index=141&type=section&id=1%E3%80%81%E6%9C%AC%E4%BC%81%E4%B8%9A%E7%9A%84%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%83%85%E5%86%B5) - The parent company is Wuhu Liantai Investment Management Center (Limited Partnership), holding **10.06%** of shares[386](index=386&type=chunk) - The ultimate controlling party is **Mr. Li Houwen**[386](index=386&type=chunk) 4. Other Related Parties](index=141&type=section&id=4%E3%80%81%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E6%83%85%E5%86%B5) - Other related parties include Guohou Asset Management Co., Ltd., Anhui Guohou Investment Management Co., Ltd. (under the same ultimate controller), and Zhoukou Zhongkong Investment Co., Ltd., Zhoukou Innovation Investment Group Co., Ltd. (company shareholders)[387](index=387&type=chunk)[388](index=388&type=chunk) 5. Related Party Transactions](index=142&type=section&id=5%E3%80%81%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93%E6%83%85%E5%86%B5) Procurement of Goods/Acceptance of Services (Partial) | Related Party | Related Transaction Content | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | :--- | | Hangzhou Yugui Trading Co., Ltd. | Product procurement | 39,351,894.79 | 9,154,703.48 | Sale of Goods/Provision of Services (Partial) | Related Party | Related Transaction Content | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | :--- | | Guohou Asset Management Co., Ltd. | Sale of goods | 3,800.00 | 9,108.00 | | Hangzhou Yugui Trading Co., Ltd. | Sale of goods | 585,036.56 | 214,918.49 | Key Management Personnel Compensation | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 9,058,054.43 | 7,771,805.88 | 6. Unsettled Items with Related Parties, such as Receivables and Payables](index=144&type=section&id=6%E3%80%81%E5%BA%94%E6%94%B6%E3%80%81%E5%BA%94%E4%BB%98%E5%85%B3%E8%81%94%E6%96%B9%E7%AD%89%E6%9C%AA%E7%BB%93%E7%AE%97%E9%A1%B9%E7%9B%AE%E6%83%85%E5%86%B5) Receivables (Partial) | Item Name | Related Party | Period-end Book Balance (yuan) | Impairment Provision (yuan) | | :--- | :--- | :--- | :--- | | Other Receivables | Henan Lianhua Sugar Industry Co., Ltd. | 270,777.74 | 187,277.74 | | Other Receivables | Henan Lianhua Tian'an Food Industry Co., Ltd. | 206,550.00 | 206,550.00 | Payables (Partial) | Item Name | Related Party | Period-end Book Balance (yuan) | Period-beginning Book Balance (yuan) | | :--- | :--- | :--- | :--- | | Accounts Payable | Hangzhou Yugui Trading Co., Ltd. | 11,897,678.30 | 3,878,346.34 | | Contract Liabilities | Henan Lianhua Sugar Industry Co., Ltd. | 265.49 | 265.49 | [XV. Share-Based Payments](index=145&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) During the reporting period, the company had no detailed information on equity instruments, outstanding stock options, equity-settled or cash-settled share-based payments, share-based payment expenses, or modifications/terminations of share-based payments - During the reporting period, the company had no detailed information regarding share-based payments[400](index=400&type=chunk) [XVI. Commitments and Contingencies](index=146&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) As of the end of the reporting period, the company was involved in a creditor subrogation dispute related to Zhengzhou Dongfang Huifu Real Estate Co., Ltd., with a case amount of **3,734,173.25 yuan**, currently in the stage of reconsideration maintenance and resumption of enforcement - The company is involved in a creditor subrogation dispute related to Zhengzhou Dongfang Huifu Real Estate Co., Ltd., with a case amount of **3,734,173.25 yuan**[401](index=401&type=chunk) - The litigation progress is reconsideration maintenance, with a notice to resume enforcement received[401](index=401&type=chunk) [XVII. Events After the Balance Sheet Date](index=146&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) After the balance sheet date, the company's subsidiary Hangzhou Lianhua Technology Innovation Co., Ltd. established a wholly-owned subsidiary, Hangzhou Zixing Exploration Intelligent Agent Technology Co., Ltd., with a registered capital of **10 million yuan**; the company also established Jiaxing Lianhua Dongzheng Huaze Equity Investment Partnership (Limited Partnership) with a registered capital of **500 million yuan** - In February 2025, subsidiary Hangzhou Lianhua Technology Innovation Co., Ltd. established a wholly-owned subsidiary, Hangzhou Zixing Exploration Intelligent Agent Technology Co., Ltd., with a registered capital of **10 million yuan**[402](index=402&type=chunk) - In July 2025, the company established Jiaxing Lianhua Dongzheng Huaze Equity Investment Partnership (Limited Partnership), with a registered capital of **500 million yuan**, and the company's capital contribution ratio is **69.8%**[402](index=402&type=chunk) [XVIII. Other Significant Matters](index=147&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company had no other significant matters requiring disclosure - As of June 30, 2025, the company had no other significant matters requiring disclosure[403](index=403&type=chunk) [XIX. Notes to Major Items in Parent Company Financial Statements](index=148&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) Detailed notes on parent company financial statement items, including accounts receivable, other receivables, and long-term equity investments; accounts receivable balance at period-end was **459,719,266.19 yuan**, with full impairment provisions for receivables from Henan Lianhua Food Trading Co., Ltd. and Henan Lianhua Flour Co., Ltd. - Parent company accounts receivable balance at period-end was **459,719,266.19 yuan**, with full impairment provisions made for receivables from Henan Lianhua Food Trading Co., Ltd. and Henan Lianhua Flour Co., Ltd[406](index=406&type=chunk)[408](index=408&type=chunk) - Parent company other receivables balance at period-end was **61,455,231.16 yuan**, with a larger proportion from intercompany balances with Henan Lianhua Flour Co., Ltd[414](index=414&type=chunk)[422](index=422&type=chunk) - Parent company long-term equity investment book value in subsidiaries at period-end was **319,797,421.06 yuan**, and in associates was **12,438,050.05 yuan**[427](index=427&type=chunk) - Parent company operating revenue for the current period was **1,033,174,712.34 yuan**, with MSG and other amino acid seasonings contributing the most[435](index=435&type=chunk)[437](index=437&type=chunk) - Parent company investment income primarily resulted from the disposal of trading financial assets, amounting to **1,029,051.90 yuan** for the current period[439](index=439&type=chunk) [XX. Supplementary Information](index=159&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) Provides supplementary information including a detailed statement of non-recurring gains and losses, return on net assets, and earnings per share; non-recurring gains and losses attributable to common shareholders were **-54,619.91 yuan**, and basic earnings per share was **0.0989 yuan/share** Non-Recurring Gains and Losses Attributable to Common Shareholders | Item | Amount (yuan) | | :--- | :--- | | Disposal gains/losses of non-current assets | -1,089,468.53 | | Government grants recognized in current profit or loss | 661,385.00 | | Other non-operating income and expenses | -33,916.57 | | Income tax impact | -3,229.04 | | Impact on minority interests (after tax) | -404,151.15 | | **Non-Recurring Gains and Losses Attributable to Common Shareholders** | **-54,619.91** | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share (yuan/share) (Basic/Diluted) | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 9.08 | 0.0989 | | Net Profit Attributable to Common Shareholders After Deducting Non-Recurring Gains and Losses | 9.08 | 0.0989 |

Core Viewpoint - The company announced the cancellation of stock options and the repurchase of restricted stocks due to the departure of several incentive plan participants, resulting in the cancellation of 1,032,500 stock options and the repurchase of 895,000 restricted shares [2][4][5]. Group 1: Cancellation and Repurchase Details - The cancellation and repurchase were approved during the board meetings held on June 25, 2025, in accordance with the company's stock incentive management regulations [2][4]. - A total of 1,032,500 stock options will be canceled, and 895,000 restricted shares will be repurchased, with repurchase prices set at 1.69 yuan per share for the 2023 plan and 1.62 yuan per share for the 2024 plan [6][8]. - The company has applied for the necessary procedures to complete the repurchase and cancellation by September 19, 2025 [7]. Group 2: Impact on Share Capital Structure - Following the completion of the repurchase, the total number of shares will decrease from 1,794,002,141 to 1,793,107,141 [8]. - The board confirmed that the decision-making process and information disclosure comply with relevant laws and regulations, ensuring no harm to the rights of incentive participants or creditors [8][9]. Group 3: Legal and Compliance - The legal opinion from Beijing King & Wood Mallesons confirmed that the company has obtained necessary approvals for the cancellation and repurchase, which aligns with the management regulations and incentive plans [9].

Core Points - Lianhua Holdings announced the resignation of several incentive plan participants, leading to the cancellation of stock options and restricted shares [2] Group 1 - In the 2023 incentive plan, 3 participants left due to personal reasons, and 1 participant left after mutual agreement with the company [2] - For the 2024 incentive plan, 4 participants also left due to personal reasons [2] - The board approved the cancellation of 1.0325 million stock options that were granted but not exercised, and the repurchase and cancellation of 895,000 restricted shares that were granted but not released from restrictions [2]