Core Viewpoint - The company has decided to suspend the research and application of the African Swine Fever freeze-dried inactivated vaccine due to significant uncertainties and challenges in the project, which will also lead to the recognition of goodwill impairment [14][19][21]. Group 1: Suspension of Vaccine Development - The board of directors unanimously approved the suspension of the African Swine Fever vaccine development project [14][20]. - The decision was made after recognizing the high technical difficulty and long regulatory approval cycles associated with the vaccine development [19][21]. - The suspension is not expected to have a significant adverse impact on the company's existing business operations [21]. Group 2: Goodwill Impairment - The company plans to recognize a goodwill impairment of approximately 17,499.47 million yuan due to the suspension of the vaccine project [30]. - This impairment is expected to reduce the net profit attributable to shareholders by about 14,981.30 million yuan for the fiscal year 2025 [30]. - The board believes that this impairment aligns with accounting standards and reflects the company's asset status more accurately [30]. Group 3: Financing Lease Business - The company approved a financing lease agreement for its subsidiary, aiming to optimize financing structure and enhance asset liquidity [33][49]. - The total financing amount is expected to be up to 14,100 million yuan, with a lease term of 30 months [33][49]. - The company will provide a guarantee for the financing lease based on its ownership percentage in the subsidiary [34][49]. Group 4: Change of Fundraising Purpose - The company has decided to change the use of unutilized fundraising from the "Animal Vaccine Production Base Construction Project" to two new projects: "Energy System and Fermentation System Optimization Project" and "3,500 tons/year Powder and Granule Automated Closed Production Line Project" [52][55]. - The total amount to be reallocated is 9,254.83 million yuan, which is approximately 11.54% of the actual net fundraising amount [53][55]. - This change is aimed at improving the efficiency of fundraising use and aligning with the company's operational needs [52][55].

Core Viewpoint - The company is strategically acquiring Jilin Youben to enhance its capabilities in African swine fever vaccine research and production, aiming to increase market share and core competitiveness in the animal vaccine sector [1]. Group 1: Acquisition and Strategic Goals - The acquisition of Jilin Youben is aimed at improving the speed of research and production transformation for African swine fever vaccines [1]. - The company plans to expand its market share in the animal vaccine field through this acquisition [1]. Group 2: Compliance and Safety Upgrades - Jilin Youben and Jinhe Youben have upgraded their facilities to meet the safety requirements for vaccine production and testing, achieving biosafety level three compliance by specific dates in 2025 [1]. - By the end of Q3 2025, the company will have met all necessary qualifications for conducting clinical trials for the African swine fever vaccine [1]. Group 3: Challenges in Vaccine Development - Jilin Youben is facing challenges in finalizing a technology licensing contract with the patent transferor, which is crucial for the production and testing of the African swine fever vaccine [2]. - The company has recognized the high technical difficulty and lengthy regulatory approval process associated with African swine fever vaccine development, leading to uncertainties in project timelines and performance [2]. - As a result of these challenges, the company has decided to suspend the research and application of the freeze-dried inactivated African swine fever vaccine [2].

Core Viewpoint - The company has decided to suspend the research and application of the African Swine Fever freeze-dried inactivated vaccine due to uncertainties in project progress and high R&D difficulties [1] Group 1: Company Actions - On January 30, 2026, the company's board of directors approved the suspension of the African Swine Fever vaccine project [1] - The company’s subsidiary, Jinhai Youben, acquired 60% equity of Jilin Youben for 288 million yuan to enter the African Swine Fever vaccine research and production [1] Group 2: Project Status - As of the end of the third quarter of 2025, all relevant qualifications for the project had met the requirements [1] - Disagreements with the patent transferor over key terms have led to uncertainties in project progress [1] Group 3: Financial Implications - The suspension of the project will result in goodwill impairment but will not have a significant adverse impact on existing business operations [1]