（2025 年 8 月修订） 山东登海种业股份有限公司 内部审计制度 第一章 总 则 第一条 为了加强山东登海种业股份有限公司（以下简称公司）、 分公司以及控股子公司的内部监督，防范和控制风险，增强信息披露 的可靠性，合理保证公司与财务报告和信息披露事务相关的业务符合 国家有关法律法规要求，保护投资者的合法权益，根据《中华人民共 和国公司法》《中华人民共和国证券法》等法律、行政法规、部门规 章、规范性文件和自律规则，结合公司实际情况，特制定本制度。 第二条 本制度适用于对公司、分公司以及子公司（含全资、控 股，以下相同）的财务管理、会计核算和生产经营所进行的内部审计 工作。 第三条 本制度所称内部审计，是指公司审计部或人员依据国家 有关法律法规和本制度的规定，对公司各内部机构、分公司以及子公 司的内部控制和风险管理的有效性、财务信息的真实性、完整性以及 经营活动的效率和效果等开展的一种评价活动。 第四条 本制度所称内部控制，是指由公司董事会、管理层和全 体员工共同实施的、旨在合理保证实现以下基本目标的一系列控制活 动： 山东登海种业股份有限公司 山东登海种业股份有限公司 第六条 公司各内部机构、分公司以及子公 ...

第一条 为规范公司领导人员的产生，优化董事会组成，完善公 司治理结构，根据《中华人民共和国公司法》《上市公司治理准则》 《公司章程》及其他有关法规规定，公司设立董事会提名委员会，并 制定本实施细则。 第二条 董事会提名委员会是董事会下设的专门工作机构，主要 负责对公司董事和高级管理人员的人选、选择标准和程序进行选择并 提出建议。 第二章 人员组成 第三条 提名委员会成员由三名董事组成，其中独立董事 2 名。 第四条 提名委员会委员由董事长、二分之一以上独立董事或者 全体董事的三分之一提名，并由董事会选举产生。 第五条 提名委员会设召集人一名，由独立董事担任，负责主持 委员会工作；召集人在委员内选举，并报请董事会批准产生。 山东登海种业股份有限公司 山东登海种业股份有限公司董事会 提名委员会工作实施细则 第一章 总则 第六条 提名委员会任期与董事会任期一致，委员任期届满，可 以连选连任。期间如有委员不再担任公司董事职务，自动失去委员资 格，并由委员会根据上述第三至第五条规定补足委员人数。 第三章 职责权限 第七条 提名委员会的主要职责权限： （一）根据公司经营活动情况、资产规模和股权结构对董事会的 人员和构成向 ...

山东登海种业股份有限公司 山东登海种业股份有限公司 信息披露事务管理制度 （2025 年 8 月修订） 第一章 总 则 第一条 为规范山东登海种业股份有限公司（以下简称"公司"） 及其他信息披露义务人的信息披露行为，加强信息披露事务管理，保 护投资者合法权益，根据《中华人民共和国公司法》《中华人民共和 国证券法》（以下简称《证券法》）《上市公司信息披露管理办法》 （以下简称《信息披露管理办法》）《深圳证券交易所股票上市规则》 （以下简称《上市规则》）等相关法律法规、规范性文件以及《公司 章程》的有关规定，制定本制度。 第二条 本制度所称"信息披露"是指将可能对公司发行的证券 及其衍生品的交易价格产生重大影响而投资者尚未得知的重大信息 以及证券监管部门要求披露的其他信息，在法定期限内，报送证券交 易所，通过指定的媒体向社会公众公布。 第三条 本制度所称"信息披露义务人"，是指公司及其董事、 高级管理人员、股东、实际控制人，收购人，重大资产重组、再融资、 重大交易有关各方等自然人、单位及其相关人员，破产管理人及其成 员，以及法律、行政法规和中国证监会规定的其他承担信息披露义务 的主体。 第四条 信息披露义务人履行 ...

山东登海种业股份有限公司 山东登海种业股份有限公司 信息披露暂缓与豁免制度 （2025 年 8 月修订） 第一章 总则 第一条 为规范山东登海种业股份有限公司（以下简称"公司"） 和其他信息披露义务人信息披露暂缓、豁免行为，加强信息披露监管， 保护投资者合法权益，根据《中华人民共和国证券法》《上市公司信 息披露管理办法》《上市公司信息披露暂缓与豁免管理规定》《深圳 证券交易所股票上市规则》等有关法律、法规及公司《信息披露事务 管理制度》的相关规定，结合公司信息披露工作的实际情况，制定本 制度。 第二条 公司和其他信息披露义务人暂缓、豁免披露临时报告， 在定期报告、临时报告中豁免披露中国证券监督管理委员会和深圳证 券交易所（以下简称"深交所"）规定或者要求披露的内容，适用本 制度。 第三条 公司和其他信息披露义务人应当真实、准确、完整、及 时、公平地披露信息，不得滥用暂缓或者豁免披露规避信息披露义务、 误导投资者，不得实施内幕交易、操纵市场等违法行为。 第四条 公司和其他信息披露义务人应当审慎确定信息披露暂缓、 豁免事项，履行内部审核程序后实施。 山东登海种业股份有限公司 保证所披露的信息不违反国家保密规定。 ...

[Section I Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Section%20I%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides crucial preliminary information, including management's assurance, a detailed report structure, a list of reference documents, and definitions of key terms [Important Notice](index=2&type=section&id=Important%20Notice) The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and assume legal responsibility. During the reporting period, the company must comply with disclosure requirements for seed and planting businesses, and has identified major risks such as changes in industrial policy, natural disasters, uncertainties in new variety research and development and promotion, market competition, and operational seasonality - The company's board of directors and senior management declare to guarantee the truthfulness, accuracy, and completeness of the report content[3](index=3&type=chunk) - The company must comply with the disclosure requirements for "seed and planting businesses" in the "Self-Regulatory Guidelines No. 3 for Listed Companies on the Shenzhen Stock Exchange—Industry Information Disclosure"[3](index=3&type=chunk) - Major risks include changes in industrial policy, natural disasters, uncertainties in new variety research and development and promotion, market supply-demand imbalance, and operational seasonality[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6](index=6&type=chunk) [Table of Contents](index=4&type=section&id=Table%20of%20Contents) This section lists the structured table of contents for the report, including nine main chapters covering company profile, management discussion and analysis, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data [List of Reference Documents](index=5&type=section&id=List%20of%20Reference%20Documents) This section provides a list of reference documents available for inspection during the reporting period, including financial statements signed and sealed by the legal representative, the person in charge of accounting, and the head of the accounting department - Reference documents include financial statements signed and sealed, original copies of publicly disclosed company documents and announcements, and the original semi-annual report text signed by the chairman[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - The storage location for reference documents is the company's Board Secretary Office[14](index=14&type=chunk) [Definitions](index=6&type=section&id=Definitions) This section defines key terms and company abbreviations used in the report, clarifying the full names of the company and its main subsidiaries, and the time scope of the reporting period Major Definitions | Definition Item | Definition Content | | :--- | :--- | | Company, This Company, Denghai Seeds | Shandong Denghai Seeds Co., Ltd. | | Reporting Period | January 1, 2025 to June 30, 2025 | | Last Three Years | 2025, 2024, 2023 | - Listed several subsidiary abbreviations including Changji Denghai, Zhangye Denghai, and Qingdao Denghai[16](index=16&type=chunk) [Section II Company Profile and Key Financial Indicators](index=7&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's fundamental information, contact details, and a summary of its key accounting data and financial performance, including non-recurring gains and losses [I. Company Profile](index=7&type=section&id=I.%20Company%20Profile) This section provides basic company information, including stock abbreviation, code, listing exchange, Chinese and English names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Denghai Seeds | | Stock Code | 002041 | | Stock Exchange Listed On | Shenzhen Stock Exchange | | Company's Chinese Name | Shandong Denghai Seeds Co., Ltd. | | Company's Legal Representative | Tang Shiwei | [II. Contact Person and Contact Information](index=7&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) This section lists the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's board secretary and securities affairs representative, facilitating communication for investors and relevant parties Contact Persons and Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Yuan Shaogang | South of Agricultural Science Academy, Chengshan Road, Laizhou City, Shandong Province | 0535-2788926 | 0535-2788875 | dmb@sddhzy.com | | Securities Affairs Representative | Wang Xiao | South of Agricultural Science Academy, Chengshan Road, Laizhou City, Shandong Province | 0535-2788889 | 0535-2788875 | dmb@sddhzy.com | [III. Other Information](index=7&type=section&id=III.%20Other%20Information) This section confirms that the company's registered address, office address, website, email address, information disclosure media, and document storage location remained unchanged during the reporting period, consistent with the 2024 annual report - The company's registered address, office address, postal code, website, and email address remained unchanged during the reporting period[21](index=21&type=chunk) - The securities exchange website and media name and URL for the company's semi-annual report disclosure, as well as the semi-annual report storage location, remained unchanged during the reporting period[22](index=22&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=8&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue and net profit attributable to shareholders of listed companies both declined, with operating revenue decreasing by 9.41% year-on-year and net profit by 33.42%. Net cash flow from operating activities improved but remained negative Key Accounting Data and Financial Indicators (Consolidated Statements) | Indicator | Current Reporting Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 369,332,216.06 | 407,692,633.40 | -9.41% | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 35,112,378.69 | 52,735,389.87 | -33.42% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses (yuan) | -4,326,149.14 | 10,830,439.02 | -139.94% | | Net Cash Flow from Operating Activities (yuan) | -63,316,742.73 | -126,799,071.41 | 50.07% | | Basic Earnings Per Share (yuan/share) | 0.0399 | 0.0599 | -33.39% | | Diluted Earnings Per Share (yuan/share) | 0.0399 | 0.0599 | -33.39% | | Weighted Average Return on Net Assets | 0.97% | 1.47% | -0.50% | | Total Assets (yuan) | 4,754,655,244.68 | 4,878,071,041.66 | -2.53% | | Net Assets Attributable to Shareholders of Listed Company (yuan) | 3,604,258,637.07 | 3,594,666,258.38 | 0.27% | [V. Differences in Accounting Data under Domestic and International Accounting Standards](index=8&type=section&id=V.%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20International%20Accounting%20Standards) The company states that there were no differences in net profit and net assets in financial reports disclosed under International Accounting Standards or foreign accounting standards compared to Chinese Accounting Standards during the reporting period - The company's financial reports disclosed under International Accounting Standards and Chinese Accounting Standards showed no differences in net profit and net assets during the reporting period[25](index=25&type=chunk) - The company's financial reports disclosed under foreign accounting standards and Chinese Accounting Standards showed no differences in net profit and net assets during the reporting period[26](index=26&type=chunk) [VI. Non-Recurring Gains and Losses and Their Amounts](index=8&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20and%20Their%20Amounts) This section details the non-recurring gains and losses and their amounts for the reporting period, totaling 39,438,527.83 yuan, primarily including gains and losses from disposal of non-current assets, government subsidies, and fair value changes of financial assets Non-Recurring Gains and Losses and Their Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 5,546,014.52 | | Government grants recognized in current profit and loss (excluding those related to normal business operations) | 25,713,536.29 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and disposal gains and losses | 16,960,885.38 | | Other non-operating income and expenses apart from the above items | -285,908.78 | | Other items that meet the definition of non-recurring gains and losses | 74,670.53 | | Less: Income tax impact | 2,274,286.77 | | Minority interest impact (after tax) | 6,296,383.34 | | Total | 39,438,527.83 | - The company does not classify non-recurring gains and losses as recurring gains and losses[29](index=29&type=chunk) [Section III Management Discussion and Analysis](index=10&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section offers an in-depth analysis of the company's main business, core competencies, financial performance, asset and liability status, investment activities, and the risks it faces, along with corresponding countermeasures [I. Main Business Activities of the Company During the Reporting Period](index=10&type=section&id=I.%20Main%20Business%20Activities%20of%20the%20Company%20During%20the%20Reporting%20Period) The company primarily engages in hybrid corn seed business, also covering other crop seeds. During the reporting period, the seed industry revitalization action progressed steadily, and biological breeding technology developed rapidly, but the corn seed market remained oversupplied and highly competitive. The company actively adjusted its strategy, increased R&D investment, and promoted the industrialization of biological breeding. The company's business model covers new variety R&D, production, procurement, sales, and warehousing management, continuously strengthening intellectual property protection - The company primarily engages in hybrid corn seed business, also covering wheat, vegetable, and rice seeds, belonging to the agricultural seed sector[31](index=31&type=chunk) - 2025 is a critical period for accelerating the "five-year effectiveness" of seed industry revitalization, with the state continuously advancing the seed industry revitalization strategy, increasing policy support, and promoting the industrialization of biological breeding[31](index=31&type=chunk) - The corn seed market generally continued to be oversupplied, leading to lower seed prices and intense competition; the accelerated promotion of genetically modified varieties injected new vitality into the market[32](index=32&type=chunk) - The company's main performance is derived from its hybrid corn seed business, accounting for approximately **90% of revenue**, with "Denghai" and "Xianyu" series as key varieties[33](index=33&type=chunk) - New variety R&D models include conventional breeding and haploid induction, with long breeding cycles, and the company possesses national and provincial-level R&D platforms[33](index=33&type=chunk)[34](index=34&type=chunk) - The production model primarily combines "company + farmers," entrusted propagation, and "company + contractors," facing risks from natural disasters and management[34](index=34&type=chunk)[35](index=35&type=chunk) - The sales model is mainly based on county-level distributors, facing risks of cross-regional sales by distributors and sales of competing products, and is improving its marketing model to adapt to new customer groups[35](index=35&type=chunk)[36](index=36&type=chunk) - During the reporting period, the company applied for **12 plant variety rights** (2 hybrid varieties, 10 inbred lines) and obtained **10 authorizations** (9 hybrid varieties, 1 inbred line); it also obtained **1 authorized invention patent**[37](index=37&type=chunk) - Total sales returns in the first half of 2025 amounted to **8.6638 million yuan**, primarily for corn seeds[37](index=37&type=chunk) [II. Analysis of Core Competencies](index=12&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company has developed strong core competencies through its national-level R&D platforms, numerous scientific and technological awards, integrated breeding-propagation-promotion industrial model, and the outstanding contributions of founder Mr. Li Denghai in corn breeding. The company continues to make progress in high-yield corn breeding and the promotion of genetically modified varieties, with a comprehensive variety reserve and leading technical expertise - The company possesses multiple national and provincial-level technological innovation platforms, such as the National Corn Engineering Technology Research Center (Shandong), and has received **25 national and provincial/ministerial awards**[38](index=38&type=chunk) - The company is one of the earliest pilot enterprises to implement integrated breeding-propagation-promotion, having formed a stable industrial model and established stable seed production and processing bases in Xinjiang, Gansu, Ningxia, and Shandong[38](index=38&type=chunk)[39](index=39&type=chunk) - The actual controller, Mr. Li Denghai, is known as the "Father of Compact Hybrid Corn in China," having achieved significant success in high-yield corn breeding with multiple generations of variety improvements[39](index=39&type=chunk) - Five corn varieties independently bred by the company, including YEDAN 2, YEDAN 12, YEDAN 13, YEDAN 19, and DENGHAI 605, were inducted into the "Hall of Fame," making the company the entity with the most inducted varieties[40](index=40&type=chunk) - During the reporting period, the demonstration and promotion of **6 national-approved genetically modified corn varieties**, led by DENGHAI 605D, progressed in an orderly manner, with sales gradually increasing[41](index=41&type=chunk) [III. Analysis of Main Business](index=13&type=section&id=III.%20Analysis%20of%20Main%20Business) During the reporting period, influenced by declining corn prices, market oversupply, and abnormal climate, the company's operating performance declined, with operating revenue decreasing by 9.41% year-on-year and net profit by 33.42%. The company actively responded by strengthening marketing, quality control, advancing R&D center construction, and approving genetically modified varieties, aiming for high-quality development - The company's operating performance declined due to factors such as falling commercial corn prices, weak market confidence, diseases, and abnormal climate[42](index=42&type=chunk) Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 369,332,216.06 | 407,692,633.40 | -9.41% | | Net Profit Attributable to Shareholders of Listed Company | 35,112,378.69 | 52,735,389.87 | -33.42% | | Net Cash Flow from Operating Activities | -63,316,742.73 | -126,799,071.41 | 50.07% | | Income Tax Expense | 12,068,229.27 | 3,187,828.63 | 278.57% | | R&D Investment | 43,178,704.56 | 37,968,891.89 | 13.72% | - The company strengthened marketing and technical services for marketable regional varieties, reduced seed production area to lower inventory risk, and advanced the construction of an integrated breeding-propagation-promotion system, including the Qingdao Biotechnology R&D Center[42](index=42&type=chunk)[43](index=43&type=chunk) - The Qingdao Biotechnology R&D Center has completed an investment of **121.0134 million yuan**, with project progress reaching **97.81%**, and scientific research and breeding work has commenced in an orderly manner[43](index=43&type=chunk) - The genetically modified corn variety "Denghai 1959D" passed approval, bringing the company's total genetically modified corn varieties to **6** at the end of the reporting period[43](index=43&type=chunk) Operating Revenue Composition (by Product) | Product | Current Reporting Period Amount (yuan) | Share of Operating Revenue | Prior Year Period Amount (yuan) | Share of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Corn Seeds | 338,237,234.88 | 91.58% | 384,522,566.78 | 94.32% | -12.04% | | Vegetable Seeds | 9,988,376.00 | 2.70% | 10,737,724.10 | 2.63% | -6.98% | | Rice Seeds | 9,328,027.53 | 2.53% | 6,076,698.00 | 1.49% | 53.50% | | Wheat Seeds | 3,072,204.09 | 0.83% | 1,409,215.13 | 0.35% | 118.01% | [IV. Analysis of Non-Core Business](index=15&type=section&id=IV.%20Analysis%20of%20Non-Core%20Business) This section analyzes the impact of the company's non-core businesses on profit, where investment income, fair value change gains/losses, and asset disposal gains contributed significantly to profit, while credit impairment losses and non-operating expenses had a negative impact Impact of Non-Core Business on Profit | Item | Amount (yuan) | Percentage of Total Profit | Main Reason | | :--- | :--- | :--- | :--- | | Investment Income | 12,739,941.74 | 28.90% | Investment income from disposal of financial assets held for trading | | Fair Value Change Gains/Losses | 4,220,943.64 | 9.58% | Financial assets held for trading | | Non-Operating Income | 689,967.02 | 1.57% | Compensation income, other income | | Non-Operating Expenses | 1,423,048.18 | 3.23% | Losses from destruction and scrapping of non-current assets, fines, other | | Credit Impairment Losses | -2,349,085.22 | -5.33% | Bad debt losses on accounts receivable, bad debt losses on other receivables | | Asset Disposal Gains | 5,993,186.90 | 13.60% | Gains from disposal of fixed assets | [V. Analysis of Assets and Liabilities](index=16&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets and net assets attributable to shareholders of listed companies remained largely unchanged. Among current assets, monetary funds and accounts receivable increased, while inventories and contract liabilities decreased. Both short-term and long-term borrowings increased, with some fixed and intangible assets pledged for loans Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (yuan) | Percentage of Total Assets | Amount at End of Prior Year (yuan) | Percentage of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,707,005,564.97 | 35.90% | 1,536,141,970.07 | 31.49% | 4.41% | | Accounts Receivable | 59,764,482.16 | 1.26% | 40,286,063.16 | 0.83% | 0.43% | | Inventories | 708,138,049.00 | 14.89% | 840,862,539.38 | 17.24% | -2.35% | | Short-term Borrowings | 31,550,000.00 | 0.66% | 20,550,000.00 | 0.42% | 0.24% | | Contract Liabilities | 263,632,545.54 | 5.54% | 407,323,025.74 | 8.35% | -2.81% | | Long-term Borrowings | 7,700,000.00 | 0.16% | 6,000,000.00 | 0.12% | 0.04% | - Financial assets measured at fair value through profit or loss had a period-end balance of **1,276,365,676.54 yuan**, a decrease from the beginning of the period[57](index=57&type=chunk) Asset Rights Restriction Status | Item | Book Value at Period-End (yuan) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | | Fixed Assets | 23,979,188.82 | Mortgage | Loan collateral | | Intangible Assets | 4,167,736.12 | Mortgage | Loan collateral | | Total | 28,146,924.94 | | | [VI. Analysis of Investment Status](index=17&type=section&id=VI.%20Analysis%20of%20Investment%20Status) During the reporting period, the company's total investment decreased significantly by 73.95% year-on-year. Major non-equity investment projects progressed smoothly, with Qingdao Biotechnology R&D Center, Chaxian Drying Line Plant Construction, and Denghai Agricultural Science New Plant all substantially completed, exceeding 90% investment progress. The company had no significant equity investments, securities investments, or derivative investments during the reporting period Investment Amount During Reporting Period | Investment Amount During Reporting Period (yuan) | Investment Amount in Prior Year Period (yuan) | Change Rate | | :--- | :--- | :--- | | 15,098,129.18 | 57,955,859.39 | -73.95% | Significant Non-Equity Investments in Progress | Project Name | Cumulative Actual Investment Amount as of End of Reporting Period (yuan) | Project Progress | | :--- | :--- | :--- | | Qingdao Biotechnology R&D Center | 121,013,356.09 | 97.81% | | Chaxian Drying Line Plant Construction | 18,907,954.44 | 96.94% | | Denghai Agricultural Science New Plant | 32,664,391.70 | 97.94% | | Corn Innovation Capability Project | 2,811,000.00 | 19.41% | | Intelligent Artificial Climate Chamber Project | 2,090,632.59 | 20.91% | - The company had no securities investments, derivative investments, or use of raised funds during the reporting period[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) [VII. Significant Asset and Equity Disposals](index=19&type=section&id=VII.%20Significant%20Asset%20and%20Equity%20Disposals) The company had no significant asset or equity disposal events during the reporting period - The company did not dispose of significant assets during the reporting period[66](index=66&type=chunk) - The company did not dispose of significant equity during the reporting period[67](index=67&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=19&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section lists the financial information of the company's major holding and participating companies, including total assets, net assets, operating revenue, and net profit, with Shandong Denghai Pioneer Seed Co., Ltd., Changji Denghai Seed Co., Ltd., and Jilin Denghai Seed Co., Ltd. having a significant impact on the company's net profit Major Subsidiary Financial Data | Company Name | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | | Shandong Denghai Pioneer Seed Co., Ltd. | 525,879,517.45 | 388,018,458.36 | 70,433,754.96 | 9,526,029.97 | | Changji Denghai Seed Co., Ltd. | 221,406,743.33 | 177,760,356.65 | 57,578,139.31 | 9,468,636.15 | | Jilin Denghai Seed Co., Ltd. | 37,857,341.87 | 25,079,286.22 | 4,763,325.00 | 5,243,040.83 | - There were no acquisitions or disposals of subsidiaries during the reporting period[68](index=68&type=chunk) [IX. Information on Structured Entities Controlled by the Company](index=20&type=section&id=IX.%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[69](index=69&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=20&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces multiple risks including new variety market promotion, adjustments in corn industry policy, seed production, and management. To address these challenges, the company plans to strengthen new variety layout and technical services, intensify germplasm research, scientifically plan seed production areas, and enhance group-level management - **New variety market promotion risk**: New varieties have a short time to market, and their field performance needs to be confirmed. Countermeasures: Plan new variety layout, strengthen marketing and technical services[69](index=69&type=chunk) - **Corn industry policy adjustment risk**: Accelerated industrialization of biological breeding intensifies market competition. Countermeasures: Increase germplasm research, improve the integrated breeding-propagation-promotion system in the four major regions, and strengthen production management and marketing services[70](index=70&type=chunk) - **Seed production risk**: Susceptible to natural disasters and pests. Countermeasures: Accelerate the construction of independent production bases, scientifically plan seed production areas, and enhance seed production technology[71](index=71&type=chunk) - **Management risk**: Numerous subsidiaries and diversified organizational structure require improved group-level management. Countermeasures: Clarify strategic positioning of parent and subsidiary companies, formulate synergistic development plans, and strengthen management team training[72](index=72&type=chunk)[73](index=73&type=chunk) [XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=21&type=section&id=XI.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system[74](index=74&type=chunk) - The company did not disclose a valuation enhancement plan[74](index=74&type=chunk) [XII. Implementation of the 'Quality and Return Dual Improvement' Action Plan](index=21&type=section&id=XII.%20Implementation%20of%20the%20%27Quality%20and%20Return%20Dual%20Improvement%27%20Action%20Plan) The company did not disclose an announcement regarding the 'Quality and Return Dual Improvement' action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan[74](index=74&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=22&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section covers changes in the company's governance structure, profit distribution plans, employee incentives, environmental information disclosure, and its commitment to social responsibility [I. Changes in Directors, Supervisors, and Senior Management](index=22&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were significant changes in the company's board of directors and supervisory board members due to re-election, with several directors and supervisors leaving upon term expiration, and new directors and a vice chairman being elected Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Wu Xiaoyan | Director | Elected | May 13, 2025 | Re-election | | Wu Xiaoyan | Vice Chairman | Elected | May 18, 2025 | Re-election | | Wang Longxiang | Director, Vice Chairman | Term expired | May 12, 2025 | Re-election | | Zhai Dongfeng | Chairman of Supervisory Board | Term expired | May 12, 2025 | Re-election | [II. Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period](index=22&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20the%20Current%20Reporting%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[77](index=77&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=22&type=section&id=III.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no implementation of equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[78](index=78&type=chunk) [IV. Environmental Information Disclosure](index=22&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its major subsidiaries are not included in the list of enterprises required by law to disclose environmental information, thus relevant disclosure requirements do not apply - The listed company and its major subsidiaries are not included in the list of enterprises required by law to disclose environmental information[79](index=79&type=chunk) [V. Social Responsibility](index=22&type=section&id=V.%20Social%20Responsibility) Adhering to its mission of 'pioneering China's high-yield corn path and catching up with world advanced levels,' the company is committed to national food security, increasing agricultural output and farmer income, and shareholder returns, actively fulfilling social responsibilities including environmental protection, resource conservation, and participation in social welfare - The company is committed to "national food security, increasing agricultural output and farmer income, and providing returns to shareholders"[79](index=79&type=chunk) - The company focuses on realizing corporate social value, promoting environmental protection and friendliness, resource conservation and recycling, and participating in and donating to social welfare and charitable causes[79](index=79&type=chunk)[80](index=80&type=chunk) [Section V Significant Events](index=24&type=section&id=Section%20V%20Significant%20Events) This section details important events during the reporting period, including commitments, related party transactions, litigation, penalties, and significant contracts, confirming the absence of many such events [I. Fulfilled and Overdue Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=24&type=section&id=I.%20Fulfilled%20and%20Overdue%20Unfulfilled%20Commitments%20by%20Controlling%20Shareholder%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) During the reporting period, there were no fulfilled or overdue unfulfilled commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no fulfilled or overdue unfulfilled commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself[82](index=82&type=chunk) [II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company](index=24&type=section&id=II.%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20from%20the%20Listed%20Company) During the reporting period, there were no non-operating funds occupied by the controlling shareholder and other related parties from the listed company - During the reporting period, there were no non-operating funds occupied by the controlling shareholder and other related parties from the listed company[83](index=83&type=chunk) [III. Irregular External Guarantees](index=24&type=section&id=III.%20Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[84](index=84&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=24&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[85](index=85&type=chunk) [V. Board of Directors' Explanation on 'Non-Standard Audit Report' for the Current Reporting Period](index=24&type=section&id=V.%20Board%20of%20Directors%27%20Explanation%20on%20%27Non-Standard%20Audit%20Report%27%20for%20the%20Current%20Reporting%20Period) Not applicable, as the company's semi-annual report was not audited, there is no non-standard audit report - Not applicable, as the company's semi-annual report was not audited[86](index=86&type=chunk) [VI. Board of Directors' Explanation on 'Non-Standard Audit Report' for the Previous Year](index=24&type=section&id=VI.%20Board%20of%20Directors%27%20Explanation%20on%20%27Non-Standard%20Audit%20Report%27%20for%20the%20Previous%20Year) Not applicable - Not applicable[86](index=86&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=24&type=section&id=VII.%20Bankruptcy%20and%20Reorganization%20Matters) The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[86](index=86&type=chunk) [VIII. Litigation Matters](index=24&type=section&id=VIII.%20Litigation%20Matters) The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during the current reporting period[87](index=87&type=chunk) [IX. Penalties and Rectification](index=25&type=section&id=IX.%20Penalties%20and%20Rectification) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[88](index=88&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=25&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholder, or actual controller - During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholder, or actual controller[89](index=89&type=chunk) [XI. Significant Related Party Transactions](index=25&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company had no significant related party transactions related to daily operations, asset or equity acquisition/disposal, joint external investment, related party creditor-debtor relationships, or transactions with finance companies - The company had no related party transactions related to daily operations during the reporting period[89](index=89&type=chunk) - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[90](index=90&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[92](index=92&type=chunk) [XII. Significant Contracts and Their Performance](index=26&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) The company had no trusteeship, contracting, leasing, or significant guarantee situations during the reporting period. The company engaged in entrusted wealth management, with an outstanding balance of 1.271 billion yuan at period-end and no overdue unrecovered amounts - The company had no trusteeship, contracting, or leasing situations during the reporting period[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) - The company had no significant guarantee situations during the reporting period[99](index=99&type=chunk) Entrusted Wealth Management | Specific Type | Source of Entrusted Funds | Amount of Entrusted Wealth Management (million yuan) | Outstanding Balance (million yuan) | Overdue Unrecovered Amount (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 26,500 | 127,133.06 | 0 | [XIII. Explanation of Other Significant Matters](index=26&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[102](index=102&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=27&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) The company had no significant matters concerning subsidiaries during the reporting period - The company had no significant matters concerning subsidiaries during the reporting period[103](index=103&type=chunk) [Section VI Share Changes and Shareholder Information](index=28&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section provides an overview of the company's share capital structure, shareholder numbers, and changes in shareholdings of directors and senior management, confirming no changes in controlling shareholder or actual controller [I. Share Capital Changes](index=28&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital remained unchanged at 880,000,000 shares, all of which are unrestricted shares Share Capital Changes | Item | Number of Shares Before Change (shares) | Percentage Before Change | Number of Shares After Change (shares) | Percentage After Change | | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0.00% | 0 | 0.00% | | II. Unrestricted Shares | 880,000,000 | 100.00% | 880,000,000 | 100.00% | | III. Total Shares | 880,000,000 | 100.00% | 880,000,000 | 100.00% | - There were no reasons for share changes, approvals, or transfer situations during the reporting period[106](index=106&type=chunk) [2. Changes in Restricted Shares](index=29&type=section&id=2.%20Changes%20in%20Restricted%20Shares) The company had no changes in restricted shares during the reporting period - The company had no changes in restricted shares during the reporting period[107](index=107&type=chunk) [II. Securities Issuance and Listing](index=29&type=section&id=II.%20Securities%20Issuance%20and%20Listing) The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[107](index=107&type=chunk) [III. Number of Shareholders and Shareholding Information](index=29&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Information) At the end of the reporting period, the total number of common shareholders was 67,600. Laizhou Academy of Agricultural Sciences is the controlling shareholder with a 53.21% stake, and Li Denghai is the second largest shareholder with a 7.35% stake. There were no pledged, marked, or frozen shares among the top ten shareholders - The total number of common shareholders at the end of the reporting period was **67,600**[108](index=108&type=chunk) Top 10 Shareholders' Shareholding Information | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | Share Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Laizhou Academy of Agricultural Sciences | Domestic Non-State-Owned Legal Person | 53.21% | 468,223,255 | 468,223,255 | Not Applicable | | Li Denghai | Domestic Natural Person | 7.35% | 64,696,004 | 64,696,004 | Not Applicable | | Yinhua Fund - Agricultural Bank - Yinhua China Securities Financial Asset Management Plan | Other | 0.61% | 5,373,192 | 5,373,192 | Not Applicable | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.40% | 3,559,030 | 3,559,030 | Not Applicable | - Li Denghai is the actual controller of Laizhou Academy of Agricultural Sciences, the company's controlling shareholder[108](index=108&type=chunk)[109](index=109&type=chunk) - There were no pledged, marked, or frozen shares among the top 10 shareholders[108](index=108&type=chunk) [IV. Changes in Shareholdings of Directors and Senior Management](index=31&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%20and%20Senior%20Management) There were no changes in the shareholdings of the company's directors and senior management during the reporting period, as detailed in the 2024 annual report - There were no changes in the shareholdings of the company's directors and senior management during the reporting period[111](index=111&type=chunk) [V. Changes in Controlling Shareholder or Actual Controller](index=31&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) Neither the company's controlling shareholder nor actual controller changed during the reporting period - The company's controlling shareholder did not change during the reporting period[112](index=112&type=chunk) - The company's actual controller did not change during the reporting period[112](index=112&type=chunk) [VI. Preferred Share Information](index=31&type=section&id=VI.%20Preferred%20Share%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[113](index=113&type=chunk) [Section VII Bond-Related Information](index=32&type=section&id=Section%20VII%20Bond-Related%20Information) This section confirms the absence of any bond-related information for the company during the reporting period [Bond-Related Information](index=32&type=section&id=Bond-Related%20Information) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[115](index=115&type=chunk) [Section VIII Financial Report](index=33&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's unaudited consolidated and parent company financial statements, including detailed notes on accounting policies, taxation, and specific financial items, along with supplementary information [I. Audit Report](index=33&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[117](index=117&type=chunk) [II. Financial Statements](index=33&type=section&id=II.%20Financial%20Statements) This section provides the company's consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position, operating results, and cash flows Consolidated Balance Sheet (Summary) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Monetary Funds | 1,707,005,564.97 | 1,536,141,970.07 | | Financial Assets Held for Trading | 1,276,365,676.54 | 1,532,591,341.11 | | Accounts Receivable | 59,764,482.16 | 40,286,063.16 | | Inventories | 708,138,049.00 | 840,862,539.38 | | Total Assets | 4,754,655,244.68 | 4,878,071,041.66 | | Short-term Borrowings | 31,550,000.00 | 20,550,000.00 | | Contract Liabilities | 263,632,545.54 | 407,323,025.74 | | Total Liabilities | 801,396,781.45 | 931,303,948.26 | | Total Owners' Equity Attributable to Parent Company | 3,604,258,637.07 | 3,594,666,258.38 | | Total Owners' Equity | 3,953,258,463.23 | 3,946,767,093.40 | Consolidated Income Statement (Summary) | Item | First Half of 2025 (yuan) | First Half of 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 369,332,216.06 | 407,692,633.40 | | Total Operating Costs | 370,912,729.68 | 406,509,983.13 | | Operating Profit | 44,812,680.26 | 49,116,313.44 | | Total Profit | 44,079,599.10 | 51,036,558.27 | | Net Profit | 32,011,369.83 | 47,848,729.64 | | Net Profit Attributable to Parent Company Shareholders | 35,112,378.69 | 52,735,389.87 | | Basic Earnings Per Share | 0.0399 | 0.0599 | Consolidated Cash Flow Statement (Summary) | Item | First Half of 2025 (yuan) | First Half of 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -63,316,742.73 | -126,799,071.41 | | Net Cash Flow from Investing Activities | 164,599,369.44 | 277,051,175.09 | | Net Cash Flow from Financing Activities | -13,250,956.67 | -21,377,647.55 | | Net Increase in Cash and Cash Equivalents | 88,031,670.04 | 128,874,456.13 | | Cash and Cash Equivalents at Period-End | 513,877,464.21 | 552,156,004.08 | [III. Company Overview](index=52&type=section&id=III.%20Company%20Overview) This section introduces the company's historical evolution, listing status, share capital structure, registration information, and main business scope, clarifying that the company primarily engages in the selection, production, packaging, and sale of new crop varieties - The company was established in December 2000 and listed on the SME Board of the Shenzhen Stock Exchange in April 2005[148](index=148&type=chunk) - As of June 30, 2025, the company's total share capital was **880 million shares**, all of which are unrestricted shares[149](index=149&type=chunk) - The company primarily engages in the selection of new crop varieties, and the production, packaging, and sale of crop seeds within the licensed business scope, with main products including hybrid corn seeds, hybrid vegetable seeds, wheat seeds, rice seeds, and flower seedlings[152](index=152&type=chunk) [IV. Basis of Financial Statement Preparation](index=52&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant disclosure regulations of the China Securities Regulatory Commission, confirming the company's ability to continue as a going concern for at least the next 12 months - The company prepares its financial statements on a going concern basis, in accordance with the Accounting Standards for Business Enterprises and relevant regulations of the China Securities Regulatory Commission[154](index=154&type=chunk) - The company has the ability to continue as a going concern for at least the next 12 months from the end of the reporting period, with no significant matters affecting its going concern ability[155](index=155&type=chunk) [V. Significant Accounting Policies and Estimates](index=53&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section elaborates on the significant accounting policies and estimates followed by the company in preparing its financial statements, covering key areas such as financial instrument classification and measurement, revenue recognition, inventory valuation, long-term equity investments, depreciation of fixed assets, amortization of intangible assets, lease accounting treatment, and deferred income tax, while also clarifying materiality standards - The financial statements prepared by the company comply with the requirements of Accounting Standards for Business Enterprises, truthfully and completely reflecting the company's financial position, operating results, cash flows, and other relevant information[158](index=158&type=chunk) - The company classifies financial assets into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, based on the business model for managing financial assets and their contractual cash flow characteristics[180](index=180&type=chunk) - The company performs impairment accounting for financial assets measured at amortized cost, financial assets classified as at fair value through other comprehensive income, contract assets, and financial guarantee contracts based on expected credit losses[201](index=201&type=chunk) - Revenue recognition principle is to recognize revenue when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the relevant goods or services[257](index=257&type=chunk) - The company primarily sells crop seeds such as corn, wheat, and rice domestically, using a distributor model, and recognizes revenue when customers receive goods without objection[264](index=264&type=chunk) - The company recognizes right-of-use assets and lease liabilities for leases, and depreciates right-of-use assets using the straight-line method[276](index=276&type=chunk) [VI. Taxation](index=87&type=section&id=VI.%20Taxation) This section details the main tax categories and rates for the company and its subsidiaries, and explains the tax preferential policies enjoyed, including VAT exemption for seeds and seedlings, corporate income tax exemption or halving for agricultural, forestry, animal husbandry, and fishery projects, and a 15% tax rate for high-tech enterprises Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Income | 6%, 9% | | Corporate Income Tax | Taxable Income | 15%, 20%, 25% | - The company and its controlled subsidiaries enjoy VAT exemption for wholesale and sales of seeds and seedlings[293](index=293&type=chunk) - The company and eligible controlled subsidiaries are exempt from corporate income tax for income derived from corn new variety breeding and cultivation, and enjoy a 50% reduction in corporate income tax for income derived from flower breeding and cultivation[294](index=294&type=chunk) - The company and high-tech enterprises such as Shandong Denghai Huayu Seed Co., Ltd., Shandong Denghai Yuyu Seed Co., Ltd., Shandong Denghai Lufeng Seed Co., Ltd., Tai'an Denghai Wuyue Taishan Seed Co., Ltd., and Liaoning Denghai Seed Co., Ltd. pay corporate income tax at a **15% rate**[294](index=294&type=chunk)[296](index=296&type=chunk) - Jilin Denghai Seed Co., Ltd. and Shandong Denghai Luxi Seed Co., Ltd. are small and micro-profit enterprises, paying corporate income tax at a **20% rate**[297](index=297&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=88&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for each item in the consolidated financial statements, including monetary funds, financial assets held for trading, accounts receivable, inventories, short-term borrowings, contract liabilities, deferred income, etc., and explains the reasons for changes in each item. During the reporting period, accounts receivable and prepayments significantly increased, while accounts payable and contract liabilities significantly decreased Monetary Funds | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Cash on Hand | 208,029.15 | 226,439.08 | | Bank Deposits | 1,645,815,767.58 | 1,490,441,379.70 | | Funds Deposited with Finance Company | 60,981,768.24 | 45,473,777.31 | | Total | 1,707,005,564.97 | 1,536,141,970.07 | Financial Assets Held for Trading | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Wealth Management Products and Structured Deposits | 1,276,365,676.54 | 1,532,591,341.11 | | Of which: Principal | 1,271,330,550.00 | 1,528,071,550.00 | | Of which: Income | 5,035,126.54 | 4,519,791.11 | | Total | 1,276,365,676.54 | 1,532,591,341.11 | - Accounts receivable at period-end amounted to **59,764,482.16 yuan**, an increase of **48.35%** from the beginning of the period, primarily due to the company's increased credit support to reputable distributors during the current period[24](index=24&type=chunk)[43](index=43&type=chunk)[304](index=304&type=chunk) - Prepayments at period-end amounted to **99,828,967.52 yuan**, an increase of **193.20%** from the beginning of the period, primarily due to prepayments for 2025 production base seed production fees[24](index=24&type=chunk)[43](index=43&type=chunk)[333](index=333&type=chunk) - Inventories at period-end amounted to **708,138,049.00 yuan**, a decrease of **15.78%** from the beginning of the period, primarily including corn, wheat, and rice seeds[24](index=24&type=chunk)[336](index=336&type=chunk) - Short-term borrowings at period-end amounted to **31,550,000.00 yuan**, an increase of **53.53%** from the beginning of the period, primarily due to increased loans by subsidiaries for short-term prepayments of base production funds[24](index=24&type=chunk)[44](index=44&type=chunk)[381](index=381&type=chunk) - Accounts payable at period-end amounted to **57,897,328.45 yuan**, a decrease of **60.68%** from the beginning of the period, primarily due to payments for prior period production base seed production settlements[24](index=24&type=chunk)[44](index=44&type=chunk)[383](index=383&type=chunk) - Contract liabilities at period-end amounted to **263,632,545.54 yuan**, a decrease of **35.28%** from the beginning of the period, primarily due to the write-off of advance receipts to revenue in the current period[24](index=24&type=chunk)[44](index=44&type=chunk)[391](index=391&type=chunk) - Deferred income at period-end amounted to **123,915,678.68 yuan**, an increase of **73.45%** from the beginning of the period, primarily due to an increase in project funds received in the current period[24](index=24&type=chunk)[45](index=45&type=chunk)[403](index=403&type=chunk) - Non-operating expenses increased by **3066.93%** in the current period compared to the prior year period, primarily due to an increase in late payment fees paid in the current period[46](index=46&type=chunk)[438](index=438&type=chunk) - Income tax expense increased by **278.57%** in the current period compared to the prior year period, primarily due to an increase in taxable income compared to the prior period[46](index=46&type=chunk)[439](index=439&type=chunk)[440](index=440&type=chunk) - Net cash outflow from operating activities decreased by **63,482,328.68 yuan** in the current period compared to the prior year period, primarily due to a decrease in cash paid for goods and services purchased[46](index=46&type=chunk)[442](index=442&type=chunk) [VIII. Research and Development Expenses](index=124&type=section&id=VIII.%20Research%20and%20Development%20Expenses) This section details the R&D expenditures during the reporting period, with total R&D investment of 43,178,704.56 yuan, including expensed R&D of 42,268,174.56 yuan and capitalized R&D of 910,530.00 yuan, primarily for the development of new corn varieties R&D Expenditure Details | Item | Amount for Current Period (yuan) | Amount for Prior Period (yuan) | | :--- | :--- | :--- | | Office Expenses | 712,794.44 | 1,338,490.57 | | Employee Compensation | 14,511,571.69 | 14,864,044.48 | | Approval and Testing Fees | 8,719,842.10 | 10,434,484.07 | | Project Cooperation R&D Fees | 3,430,000.00 | 0 | | Total | 43,178,704.56 | 37,968,891.89 | | Of which: Expensed R&D | 42,268,174.56 | 37,661,391.89 | | Capitalized R&D | 910,530.00 | 307,500.00 | - Capitalized R&D projects primarily involve new corn varieties, with a period-end balance of **3,806,744.04 yuan**[459](index=459&type=chunk) [IX. Interests in Other Entities](index=124&type=section&id=IX.%20Interests%20in%20Other%20Entities) This section lists the composition of the company's enterprise group, including the registered capital, registered location, business nature, and shareholding percentage of major subsidiaries. Shandong Denghai Pioneer Seed Co., Ltd. is a significant non-wholly owned subsidiary, with a minority shareholder stake of 49.00% Composition of Enterprise Group (Partial Subsidiaries) | Subsidiary Name | Registered Capital (yuan) | Business Nature | Shareholding Percentage (Direct) | | :--- | :--- | :--- | :--- | | Shandong Denghai Pioneer Seed Co., Ltd. | 54,811,941.46 | Production, sales; new crop variety selection | 51.00% | | Changji Denghai Seed Co., Ltd. | 60,000,000.00 | Production, sales; new crop variety selection | 100.00% | | Qingdao Denghai Seed Co., Ltd. | 90,000,000.00 | New crop variety selection, sales | 100.00% | | Yili Denghai Seed Co., Ltd. | 100,000,000.00 | Production, sales; new crop variety selection | 100.00% | Financial Information of Significant Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding Percentage | Net Profit Attributable to Minority Shareholders for Current Period (yuan) | Minority Interest Balance at Period-End (yuan) | | :--- | :--- | :--- | :--- | | Shandong Denghai Pioneer Seed Co., Ltd. | 49.00% | 4,667,754.69 | 190,129,044.60 | [X. Government Grants](index=128&type=section&id=X.%20Government%20Grants) This section discloses the government grants received by the company during the reporting period. At period-end, government grants related to assets in deferred income totaled 17,360,008.02 yuan, and those related to income totaled 106,555,670.66 yuan. The total government grants recognized in other income for the current period amounted to 25,713,536.29 yuan Liability Items Involving Government Grants | Accounting Account | Period-Beginning Balance (yuan) | New Grants for Current Period (yuan) | Amount Transferred to Other Income for Current Period (yuan) | Period-End Balance (yuan) | Related to Asset/Income | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 16,749,301.89 | 6,000,000.00 | 5,389,293.87 | 17,360,008.02 | Related to Asset | | Deferred Income | 54,693,063.01 | 62,530,000.00 | 10,667,392.35 | 106,555,670.66 | Related to Income | | Total | 71,442,364.90 | 68,530,000.00 | 16,056,686.22 | 123,915,678.68 | | Government Grants Recognized in Current Profit and Loss | Accounting Account | Amount for Current Period (yuan) | Amount for Prior Period (yuan) | | :--- | :--- | :--- | | Other Income | 25,713,536.29 | 18,717,644.03 | | Total | 25,713,536.29 | 18,717,644.03 | [XI. Risks Related to Financial Instruments](index=128&type=section&id=XI.%20Risks%20Related%20to%20Financial%20Instruments) The company faces credit risk, market risk (interest rate risk, foreign exchange risk), and liquidity risk in its operations. The company manages these risks by selecting reputable banks and distributors, maintaining sufficient cash, and believes that interest rate and foreign exchange risks have a minor impact on the company - The company faces credit risk, market risk (interest rate risk, foreign exchange risk), and liquidity risk[469](index=469&type=chunk) - Credit risk primarily arises from bank deposits and accounts receivable, managed by selecting reputable banks and distributors[470](index=470&type=chunk) - Interest rate risk has a minor impact on the company due to small bank borrowing amounts and no outstanding bonds[472](index=472&type=chunk) - The company has no foreign currency monetary items, thus foreign exchange risk does not affect the company[473](index=473&type=chunk) - Liquidity risk is managed by maintaining sufficient cash and cash equivalents[474](index=474&type=chunk) [XII. Disclosure of Fair Value](index=130&type=section&id=XII.%20Disclosure%20of%20Fair%20Value) This section discloses the fair value of the company's assets and liabilities measured at fair value at period-end, where financial assets held for trading (wealth management products and structured deposits) are measured using Level 2 fair value, and other equity instrument investments are measured using Level 3 fair value Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 1,276,365,676.54 | | 1,276,365,676.54 | | Other Equity Instrument Investments | | 300,000.00 | 300,000.00 | | Total Assets Continuously Measured at Fair Value | 1,276,365,676.54 | 300,000.00 | 1,276,665,676.54 | - Wealth management products and structured deposits use a discounted cash flow valuation model to determine fair value[477](index=477&type=chunk) - Unlisted equity investments (other equity instrument investments) use the cost method to determine fair value due to low equity proportion, no significant influence, and lack of market reference[478](index=478&type=chunk) [XIII. Related Parties and Related Party Transactions](index=130&type=section&id=XIII.%20Related%20Parties%20and%20Related%20Party%20Transactions) This section discloses information on the company's parent company, ultimate controlling party, subsidiaries, and other related parties, and lists related party purchase and sale transactions during the reporting period, including the purchase of corn and flowers totaling 40,500.00 yuan from Laizhou Academy of Agricultural Sciences - The parent company of the enterprise is Laizhou Academy of Agricultural Sciences, with a shareholding of **53.21%**, and the ultimate controlling party is Li Denghai[479](index=479&type=chunk) - Other related parties include the former controlled subsidiary Dandong Denghai Liangyu Seed Co., Ltd[481](index=481&type=chunk) Purchase of Goods/Acceptance of Services | Related Party | Related Party Transaction Content | Amount for Current Period (yuan) | Approved Transaction Limit (yuan) | Exceeded Transaction Limit | Amount for Prior Period (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Laizhou Academy of Agricultural Sciences | Corn, Flowers | 40,500.00 | 1,000,000.00 | No | 225,793.60 | - Among receivables from related parties, other receivables from Dandong Denghai Liangyu Seed Co., Ltd. amounted to **1,180,400.00 yuan**, for which a full impairment provision has been made[484](index=484&type=chunk) [XIV. Commitments and Contingencies](index=131&type=section&id=XIV.%20Commitments%20and%20Contingencies) As of the balance sheet date, the company had no significant commitments or contingencies requiring disclosure - As of the balance sheet date, the company had no commitments requiring disclosure[485](index=485&type=chunk) - As of the balance sheet date, the company had no contingencies requiring disclosure[486](index=486&type=chunk)[487](index=487&type=chunk) [XV. Notes to Parent Company Financial Statement Items](index=132&type=section&id=XV.%20Notes%20to%20Parent%20Company%20Financial%20Statement%20Items) This section provides detailed notes for the main items in the parent company's financial statements, including accounts receivable, other receivables, long-term equity investments, operating revenue, and investment income. The parent company's accounts receivable and operating revenue both showed significant growth, but net profit and investment income decreased - The parent company's accounts receivable at period-end amounted to **26,028,856.76 yuan**, an increase of **267.18%** from the beginning of the period[133](index=133&type=chunk)[489](index=489&type=chunk) - The parent company's other receivables at period-end amounted to **83,658,099.48 yuan**, primarily intercompany balances with subsidiaries[135](index=135&type=chunk)[502](index=502&type=chunk) - The parent company's long-term equity investments at period-end amounted to **644,107,567.14 yuan**, an increase of **1.10%** from the beginning of the period, mainly due to an additional investment of **7,000,000.00 yuan** in Changji Denghai Seed Co., Ltd[138](index=138&type=chunk)[516](index=516&type=chunk) - The parent company's operating revenue for the current period amounted to **154,449,680.17 yuan**, an increase of **14.82%** from the prior period[139](index=139&type=chunk)[519](index=519&type=chunk) - The parent company's investment income for the current period amounted to **9,695,359.18 yuan**, a decrease of **45.44%** from the prior period, mainly due to a decrease in investment income from the disposal of financial assets held for trading[140](index=140&type=chunk)[523](index=523&type=chunk) [XVI. Supplementary Information](index=140&type=section&id=XVI.%20Supplementary%20Information) This section provides supplementary information such as the detailed statement of non-recurring gains and losses, return on net assets, and earnings per share. Total non-recurring gains and losses amounted to 39,438,527.83 yuan, and the weighted average return on net assets was 0.97% Detailed Statement of Non-Recurring Gains and Losses for the Current Period | Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 5,546,014.52 | | Government grants recognized in current profit and loss (excluding

Investment Rating - The industry rating is "Recommended" [3] Core Insights - The pork market is experiencing an oversupply, leading to a continued decline in pork prices [2] - The planting industry is focusing on pest control for autumn crops, which is crucial for achieving the annual grain production target of approximately 1.4 trillion jin [11] - The commercialization of genetically modified crops is expected to accelerate, enhancing self-sufficiency in key varieties [11] Summary by Sections Planting Industry - A national meeting was held to address pest control for autumn crops, emphasizing its importance for overall grain yield [11] - The autumn crop accounts for three-quarters of the annual grain production, making pest control critical [11] - The Ministry of Agriculture is promoting the protection of new plant varieties to support innovation in the seed industry [11] - Recommended stocks include Beidahuang and Suqian Agricultural Development in the planting sector, and major seed companies like Dabeinong and Longping High-Tech [11] Swine Farming - The average price of external three-breed pigs is 13.80 yuan/kg, with a slight weekly decrease of 0.07% [2] - Demand remains weak, and there are no immediate positive factors expected to boost demand [2] - The number of breeding sows has decreased to 40.43 million, down 370,000 from the peak last year [2] - Recommended stocks in the breeding sector include DeKang Agriculture, Jingji Zhino, Muyuan Foods, and Wen's Foodstuffs [2] Key Agricultural Products Data Tracking - Corn: The average price is 2385.10 yuan/ton, down 0.39% week-on-week [24] - Wheat: The average price is 2435.58 yuan/ton, down 0.10% week-on-week [27] - Rice: The average price for japonica rice is 2892.80 yuan/ton, down 0.66% week-on-week [32] - Soybeans: The average price is 3952.63 yuan/ton, up 0.27% week-on-week [37] - Cotton: The average price in Xinjiang is 15090.00 yuan/ton, up 0.18% week-on-week [42] Feed and Vitamin Prices - The average price of pig feed is 2.71 yuan/kg, down 0.37% week-on-week [49] - The average price of vitamin E is 67.50 yuan/kg, unchanged week-on-week [49]

Investment Rating - Industry rating: Outperform the market (maintained rating) [9] Core Insights - The pet industry is experiencing significant growth, with the Asia Pet Expo showcasing over 2,600 exhibitors and 20,000 brands, indicating a thriving market driven by globalization and innovation [2][13] - China's pet food exports have shown continuous growth, with 201,000 tons exported from January to July 2025, reflecting a year-on-year increase of 6.64% [14] - The pig farming sector is facing challenges, with the average pig price at 13.82 yuan/kg, a decrease of 3.63% from the previous week, and the average weight of pigs reaching a historical high [15][16] - The dairy sector is poised for a recovery, with the original milk price expected to rebound as production capacity decreases after a prolonged period of losses [17][18] - The poultry sector is focusing on breeding gaps, with a significant decline in the import of breeding chickens due to avian influenza concerns, which may impact future supply [19][20] - The planting sector emphasizes food security and the importance of biotechnology, with a focus on high-yield and resilient crop varieties [25] - The feed sector is recommended for investment, particularly in companies like Haida Group, which is expected to benefit from market recovery and increased market share [26] Summary by Sections Pet Sector - The Asia Pet Expo has reached a record scale of 310,000 square meters, highlighting the industry's vitality and innovation potential [2][13] - Pet food exports from China have increased, with a total of 201,000 tons exported in the first seven months of 2025, showing a year-on-year growth of 6.64% [14] - Recommended companies include pet food brands like Guibao Pet, Zhongchong Co., and Petty Co. [14] Pig Sector - The average pig price is currently at 13.82 yuan/kg, with a year-to-date low in profitability for pig farming [15][16] - The average weight of pigs is at a historical high, indicating supply pressures [15] - Recommended companies include leading pig farming firms such as Wens Foodstuffs Group and Muyuan Foods [16] Dairy Sector - Yuran Dairy reported stable performance with a revenue of 10.3 billion yuan, showing a year-on-year growth of 2.3% [17] - The dairy industry is expected to see a recovery as production capacity decreases [18] - Recommended companies include Yuran Dairy and China Shengmu Organic Milk [18] Poultry Sector - The poultry sector is facing challenges with breeding imports, particularly for white chickens, due to avian influenza [19][20] - Recommended companies include Shennong Development and Yisheng Livestock [20] Planting Sector - The focus is on food security and biotechnology, with an emphasis on high-yield and resilient crop varieties [25] - Recommended companies include Longping High-Tech and Dabeinong Technology Group [25] Feed Sector - Haida Group is highlighted as a key investment opportunity due to its increasing market share and performance [26] - The animal health sector is also recommended, particularly companies like Kexin Biological [27]

Group 1: Company Events - The conference for Daoming Optics will be held on August 25 at 16:00, featuring the Board Secretary and Technical Director as speakers [1][3][4] - Capbio's 2025 semi-annual report performance conference is scheduled for August 26 at 10:00, with the Chief Scientist and Financial Director participating [1][10][11] - A media industry investment perspective update will take place on August 27 at 20:00, led by the Chief Analyst of the media sector [1][14][15] - The half-year report interpretation conference for Denghai Seed Industry is set for August 28 at 09:30, with the Deputy General Manager and Board Secretary presenting [1][20][21] - A discussion on humanoid robots in the automotive parts sector will occur on August 28 at 19:00, hosted by the Chief Analyst of the automotive industry [1][23][24] - The electronic industry investment perspective for September will be presented on August 29 at 15:00 by the Chief Analyst of the electronic sector [1][28][29] Group 2: Industry Analysis - An industry allocation model review and update series (Part 10) is scheduled for August 31 at 21:30, led by the Chief Analyst of quantitative finance [2][35][36]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report indicates that the pig price is expected to gradually rise due to government storage initiatives, with the average pig price as of August 22, 2025, being 13.73 yuan/kg, showing a week-on-week increase of 0.04 yuan/kg but a year-on-year decrease of 6.51% [3][13] - The pet food export market is experiencing high growth, with July 2025 exports amounting to 130 million USD, a month-on-month increase of 13.35% [4][25] - The report highlights a positive outlook for the pig farming sector, driven by both fundamental and policy factors, with recommendations for specific companies in the sector [5][26] Weekly Observations - The report notes that the storage of frozen pork by the government is set to begin on August 25, 2025, with a total of 10,000 tons to be stored [38] - The average pig-to-grain price ratio has fallen below 6:1, prompting government intervention to stabilize the market [13][41] - The agricultural index outperformed the market by 0.23 percentage points during the week of August 18-22, 2025, with a 3.72% increase [30][33] Price Tracking - As of August 22, 2025, the average price of live pigs was 13.73 yuan/kg, with a slight decrease of 0.03 yuan/kg from the previous week [43][44] - The average price of piglets was 27.78 yuan/kg, down 1.09 yuan/kg week-on-week [43][44] - The report also tracks the prices of other agricultural products, noting fluctuations in beef, chicken, and feed prices [42][54] Recommendations - The report recommends several companies for investment, including Muyuan Foods, Wens Foodstuff Group, and others in the pig farming sector, as well as companies in the feed sector like Haida Group and New Hope [5][26][28] - In the pet food sector, companies such as Guibao Pet and Petty are highlighted as strong investment opportunities due to the rising domestic market [5][29]

Investment Rating - The report maintains a "Buy" rating for the agriculture, forestry, animal husbandry, and fishery sector [4] Core Viewpoints - The report indicates that the destocking phase for live pigs is nearing its end, with a focus on the effects of a new round of pork reserves [1] - The report highlights a recent decline in pork prices, with the average price for live pigs at 13.75 yuan/kg, down 0.07% week-on-week, and a significant drop in the price of piglets by 3.78% to 27.78 yuan/kg [1][22] - The report notes an increase in the average weight of slaughtered pigs, which is expected to stabilize prices as the government resumes pork reserves to boost market sentiment [1][22] Summary by Sections 1. Market Overview - The agriculture, forestry, animal husbandry, and fishery sector underperformed compared to the broader market, with the sector index rising by 3.72% while the Shanghai Composite Index rose by 3.49% [13] - The report provides a detailed performance breakdown of sub-sectors, with livestock farming showing a 4.31% increase [13] 2. Key Data Tracking 2.1 Live Pigs - The average weight of slaughtered pigs is reported at 127.98 kg, showing a slight increase of 0.16 kg week-on-week [22] - The national frozen meat storage capacity rate is at 14.77%, up 0.1 percentage points [22] 2.2 White Feather Broilers - The price of white feather broilers increased to 7.33 yuan/kg, up 1.81% week-on-week, while chick prices remained stable at 3.58 yuan each [31] 2.3 Yellow Feather Broilers - The price of medium-speed chickens rose to 6.34 yuan/jin, reflecting a 4.97% increase, driven by rising demand post-typhoon [40] 2.4 Feed Sector - The report notes a decline in the prices of corn, wheat, and soybean meal, with corn averaging 2373.53 yuan/ton, down 0.86% week-on-week [2][45] 2.5 Major Agricultural Products - The price of natural rubber fell to 15640 yuan/ton, down 0.89% week-on-week, with inventory levels decreasing slightly [60] 3. Investment Recommendations - The report recommends focusing on the pig farming sector, suggesting that the long-term profitability cycle is beginning to improve, with specific companies highlighted for investment: Muyuan Foods, Wens Foodstuff Group, Juxing Agriculture, and Shennong Group [3] - It also suggests monitoring the feed and animal health sectors, particularly companies like Haida Group and Ruipu Biological, as demand is expected to rise [3] - In the planting chain, the report identifies investment opportunities in companies such as Suqian Agricultural Development and Beidahuang Group due to favorable grain price trends [3]