Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Annual Report of 2025
【April 24, 2026】
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Annual Report of 2025
Section I Important Information, Contents, and Definitions
The Company’s Board of Directors, directors, and officers ensure that the
content of this annual report is true, accurate, and complete without any false
record, misleading statement, or significant omission and bear joint and
several legal liability.
Wang Huan, the principal of the Company, Fu Chuanhai, the person in
charge of accounting, and Lei Lixin, the person in charge of the accounting
body (accounting supervisor), declare that the financial report in this annual
report is true, accurate, and complete.
All directors attended the Board meeting at which this report was
considered.
The Company describes potential risks in its operations and
countermeasures in “XI. Prospect of the Company’s Future Development” in
Section III, “The Management’s Discussion and Analysis.” Investors are
reminded to pay attention to the relevant content.
This report is prepared in Chinese and English. Where the Chinese and
English texts are interpreted in different ways, the Chinese text shall prevail.
The Company plans not to distribute cash dividends, not to distribute
bonus shares, and not to convert reserves into share capital.
As of the end of the reporting period, the parent company had accumulated
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
losses.
According to the audit conducted by Shanghai Certified Public
Accountants (Special General Partnership), the parent company’s net profit
for the 2025 fiscal year was RMB 16,136,778.43, and its retained earnings were
RMB -2,898,701.11. In accordance with the provisions of the Articles of
Association and the Shenzhen Stock Exchange Listing Rules (Section 5.3.2:
“Profit distribution by a listed company shall be based on the distributable
profits in the most recent audited parent company financial statements, taking
into reasonable consideration the current period’s profit situation, and shall
determine the specific profit distribution ratio in accordance with the principle
of taking the lower of the distributable profits in the consolidated financial
statements and the parent company financial statements to avoid over-
distribution), the parent company’s distributable profits as of December 31,
follows: no profit distribution will be made, nor will capital reserves be
converted into share capital.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Contents
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
List of Documents for Reference
(I) Financial statements with the signatures of the principal of the Company, the person in charge of accounting, and the
person in charge of the accounting body and affixed with the Company’s seal.
(II) The original of the audit report affixed with the accounting firm’s seal and the certified public accountant’s signature and
seal.
(III) The originals of all corporate documents and the manuscripts of all announcements disclosed during the Reporting
Period.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Definitions
Term Refers to Content
The Company, Company, or Zhonglu Shandong Zhonglu Oceanic Fisheries
Refers to
Oceanic Co., Ltd.
Shandong State-owned Assets
Shandong Guotou Refers to
Investment Holdings Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
The annual report of 2025 prepared by
This report Refers to
the Company
Shandong Zhonglu Haiyan Oceanic
Zhonglu Haiyan Refers to
Fisheries Co., Ltd.
Shandong Zhonglu Oceanic (Yantai)
Zhonglu Food Refers to
Food Co., Ltd.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section II Company Introduction and Key Financial Indicators
I. Company’s Information
Short stock name Zhonglu B Stock code 200992
Securities exchange where the
Shenzhen Stock Exchange
stocks are listed
Chinese name 山东省中鲁远洋渔业股份有限公司
Short Chinese name 中鲁远洋
Foreign name (if any) Shandong Zhonglu Oceanic Fisheries Company Limited
Acronym of the foreign name
ZLYY
(if any)
Legal representative Wang Huan
Registered address Unit 2501, Building 1, 31 Xianxialing Road, Laoshan District, Qingdao, Shandong
Postal code of the registered
address
Historical changes of the
Laoshan District, Qingdao, Shandong→Unit 2501, Building 1, 31 Xianxialing Road, Laoshan
Company’s registered address
District, Qingdao, Shandong
Office address
Qingdao, Shandong
Postal code of the office
address
Website http://www.zofco.cn/
Email zl000992@163.com
II. Contact Person and Contact Information
Board Secretary Securities Affairs Representative
Name Yu Xiaoqiang Tang Yuntao
Address Center, No. 31 Xianxialing Road, Center, No. 31 Xianxialing Road,
Laoshan District, Qingdao, Shandong Laoshan District, Qingdao, Shandong
Tel 0532-55717968 0532-55715968
Fax 0532-55719258 0532-55719258
Email zl000992@163.com zl000992@163.com
III. Information Disclosure and Place of Report Storage
Stock exchange website where the Company discloses the
China Securities Journal
annual report
Media name and website where the Company discloses the
CNINFO http://www.cninfo.com.cn
annual report
Place of annual report storage Company’s Board Office
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
IV. Registration Changes
Unified Social Credit Code 91370000863043102Y
(1) On July 14, 2000, the Company’s business scope changed
from “high sea and long range fishing; the culture, processing,
and sales of aquatic products; the import and export of
commodities within the approved scope; the manufacture and
sales of machine-made ice; the manufacture, installation, and
repair of refrigeration equipment” to “high sea and long range
fishing; the culture, processing, and sales of aquatic products;
the import and export of commodities within the approved
scope; the manufacture and sales of machine-made ice; the
manufacture, installation, and repair of refrigeration equipment;
the leasing of refrigeration storage.”
(2) On November 30, 2000, the Company’s business scope
changed from “high sea and long range fishing; the culture,
processing, and sales of aquatic products; the import and export
of commodities within the approved scope; the manufacture
and sales of machine-made ice; the manufacture, installation,
and repair of refrigeration equipment; the leasing of
refrigeration storage” to “high sea and long range fishing; the
culture, processing, and sales of aquatic products; the import
and export of commodities within the approved scope; the
manufacture and sales of machine-made ice; the manufacture,
installation, and repair of refrigeration equipment; refrigeration
and cold storage.”
(3) On May 28, 2002, the Company’s business scope changed
from “high sea and long range fishing; the culture, processing,
and sales of aquatic products; the import and export of
Changes in the Company’s main businesses since listing (if commodities within the approved scope; the manufacture and
any) sales of machine-made ice; the manufacture, installation, and
repair of refrigeration equipment; refrigeration and cold
storage” to “high sea and long range fishing; the culture,
processing, and sales of aquatic products; the import and export
of commodities within the approved scope; the manufacture
and sales of machine-made ice; the manufacture, installation,
and repair of refrigeration equipment; refrigeration and cold
storage; loading, unloading, and handling services.”
(4) On June 6, 2006, the Company’s business scope changed
from “high sea and long range fishing; the culture, processing,
and sales of aquatic products; the import and export of
commodities within the approved scope; the manufacture and
sales of machine-made ice; the manufacture, installation, and
repair of refrigeration equipment; refrigeration and cold
storage; loading, unloading, and handling services” to “high sea
and long range fishing; the processing and sales of aquatic
products; the import and export of commodities within the
approved scope; the manufacture and sales of machine-made
ice; the manufacture, installation, and repair of refrigeration
equipment; refrigeration and cold storage; loading, unloading,
and handling services.”
(5) On May 16, 2007, the Company’s business scope changed
from “high sea and long range fishing; the processing and sales
of aquatic products; the import and export of commodities
within the approved scope; the manufacture and sales of
machine-made ice; the manufacture, installation, and repair of
refrigeration equipment; refrigeration and cold storage;
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
loading, unloading, and handling services” to “high sea and
long range fishing; the processing and sales of aquatic
products; the import and export of commodities within the
approved scope; the manufacture and sales of machine-made
ice; the manufacture, installation, and repair of refrigeration
equipment; refrigeration and cold storage; loading, unloading,
and handling services; property leasing.”
In December 2006, 88,000,000 shares of the Company held by
Shandong Aquaculture Enterprise Group as a state-owned legal
person were transferred to Shandong Guotou through judicial
auction procedures and a court ruling. On June 21, 2007,
Shandong Guotou received the Confirmation of Transferred
Ownership Registration from China Securities Depository and
Clearing Co., Ltd. Shenzhen Branch, which stated that the
transfer procedures had been completed. By then, Shandong
Guotou held 88,000,000 shares of the Company as a state-
Changes in the controlling shareholder (if any) owned legal person, accounting for 33.07% of the Company’s
total share capital. On July 20, 2018, Shandong Guotou signed
the Agreement for the Share Transfer of Shandong Zhonglu
Oceanic Fisheries Co., Ltd. with Lucion Group to receive
person, accounting for 14.18% of the Company’s total share
capital. On November 16, 2018, Shandong Guotou received the
Confirmation of Transferred Securities Ownership
Registration, which stated that the transfer procedures had been
completed.
V. Other Relevant Information
Accounting firm engaged by the Company
Shanghai Certified Public Accountants (special general
Name of accounting firm
partnership)
Office address Floor 25, 755 Weihai Road, Jing’an District, Shanghai
Names of signatory accountants Xu Mao, Wang Zhenbing
Sponsor institution engaged by the Company to perform continuous supervision during the Reporting Period
□Applicable ? Not applicable
Financial adviser engaged by the Company to perform continuous supervision during the Reporting Period
□Applicable ? Not applicable
VI. Key Accounting Data and Financial Indicators
Whether the Company is required to make retroactive adjustments or restate the accounting data for previous years
□Yes ? No
Operating revenue
(RMB)
Net profits attributable
to the Company’s 33,472,952.45 34,540,564.55 -3.09% 39,599,325.61
shareholders (RMB)
Net profits attributable
to the Company’s
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
shareholders after
deducting nonrecurring
items (RMB)
Net cash flows from
operating activities 111,095,906.17 117,920,429.99 -5.79% 81,536,757.82
(RMB)
Base earnings per share
(RMB/share)
Diluted earnings per
share (RMB/share)
Weighted average
return on equity
At the end of 2025 At the end of 2024 Increase/Decrease At the end of 2023
Total assets (RMB) 2,168,213,094.94 2,106,970,515.76 2.91% 2,048,135,067.78
Net assets attributable
to the Company’s 1,094,666,215.62 1,067,190,746.65 2.57% 1,029,594,896.14
shareholders (RMB)
The lower values of the Company’s net profits before and after deducting nonrecurring items for the last three accounting years are
all negative, and the audit report for the last one year shows that there are uncertainties in the Company’s sustainable operation
ability.
□Yes ? No
During the reporting period, the Company’s audited total profit, net profit, and net profit after deducting non-recurring gains and
losses, whichever is the lowest, will be negative.
□Yes ? No
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
accounting standards and Chinese accounting standards
□Applicable ? Not applicable
For the Company, there was no difference in net profits and net assets in the financial report disclosed both according to
international accounting standards and Chinese accounting standards during the Reporting Period.
accounting standards and Chinese accounting standards
□Applicable ? Not applicable
For the Company, there was no difference in net profits and net assets in the financial report disclosed both according to overseas
accounting standards and Chinese accounting standards during the Reporting Period.
VIII. Key Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 269,861,836.68 407,518,240.81 394,194,805.76 415,117,826.41
Net profits attributable
-274,714.35 -13,062,331.91 15,838,020.31 30,971,978.40
to the Company’s
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
shareholders
Net profits attributable
to the Company’s
shareholders after -1,251,867.00 -14,088,288.55 14,332,374.84 31,444,158.55
deducting nonrecurring
items
Net cash flows from
operating activities
Whether the above financial indicators or the sum of them are significantly different from the quarterly reports or semi-annual
reports disclosed by the Company
□Yes ? No
IX. Nonrecurring Items and Amounts
? Applicable □Not applicable
Unit: RMB
Item Amount for 205 Amount for 2024 Amount for 2023 Remark
Gains or losses from
the disposal of non-
current assets
(including the write- -2,189,178.62 -54,820.53 -84,285.00
offs for which the asset
impairment provision
was accrued)
Government subsidies
recognized in the profit
or loss (excluding
government subsidies
that are closely
associated with the
Company’s ordinary
course of business,
comply with national
policies, are enjoyed
according to
established standards,
and have continuous
effects on the
Company’s profit or
loss)
Gains or losses from
fair value change
arising from the
financial assets and
financial liabilities held
by non-financial
businesses and gains or -135,804.65 -79,486.61
losses from the
disposal of financial
assets and financial
liabilities, except for
effective hedging
business related to the
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Company’s ordinary
course of business
Trustee income from
trusteeship
Other non-operating
incomes and
expenditures than the
above
Less: amount of the
effect of the income tax
Amount of the effect of
the minority interest 51,577.75 1,134,812.93 1,285,560.98
(after tax)
Total 3,036,574.61 9,990,954.84 5,459,836.44 --
Details of other profit/loss items that conform to the definition of nonrecurring items:
□Applicable ? Not applicable
For the Company, there was no detail of other profit/loss items that conform to the definition of nonrecurring items.
Explanation of the situation where the nonrecurring items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items are defined as recurring items
□Applicable ? Not applicable
The Company had no situation where it defined the nonrecurring items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items as recurring items.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section III The Management’s Discussion and Analysis
I. Company’s Main Businesses during the Reporting Period
During the Reporting Period, the Company’s main businesses included long range fishing, maritime transportation, and cold
storage processing and trading. These businesses rely on and promote each other, forming a complete industrial chain.
During the Reporting Period, the Company had 27 distant-water fishing boats, including 14 large ultra-low temperature tuna
longliners, nine (sets of) large tuna seiners, two medium-sized trawlers, and two squid fishing boats, which mainly operated in the
Indian Ocean, the Atlantic, and the Pacific. Guided by the “Stabilize, Expand, and Upgrade” business strategy, the fleet has
consolidated its operational advantages in the Atlantic, expanded its longline fishing operations, and increased its purse seine catch
in the Central and Western Pacific. The ultra-low-temperature longline fishing program has shifted operations from low-latitude
waters to high-latitude waters in the Southern Hemisphere, thereby expanding the operational scope and diversifying the range of
fish species caught.
During the reporting period, the Company’s eight large ocean-going vessels demonstrated excellent performance, strict
management, and standardized service. These vessels are suitable for the deep-sea frozen and refrigerated transport of seafood,
meat, poultry, vegetables, and fruits, with their service areas covering the central and western Pacific, the Indian Ocean, the
Atlantic Ocean, and select waters and ports in North and South America. The vessels logged a cumulative safe voyage of over
operational days.
During the reporting period, the Company successfully passed two leading international food safety audits—BRC (Global Food
Safety Standard) and IFS (International Food Standard)—joining the ranks of the few food processing companies worldwide to
obtain IFS certification. This achievement has laid a solid foundation for exporting products to the EU and further expanding into
international markets. We established a “customer-sales-R&D” tripartite product co-creation mechanism to drive R&D directly
into the market. International trade demonstrated a positive trend of “rising volume and prices,” with total annual exports
exceeding 17,000 tons, a year-over-year increase of over 13%; total export value reached $79 million, a year-over-year increase of
over 30%. New clients were acquired in multiple countries and regions. Online sales explored a “brand + private domain + science
popularization” model, collaborating with Ocean University and the Shandong Provincial Offshore Fisheries Association to
organize a series of themed live-streaming events. These initiatives received a positive market response, with annual sales from
private domain live-streaming growing by over 31% year-over-year.
Market position: the vice-presidential unit of the China Overseas Fisheries Association; the presidential unit of the Qingdao
Overseas Fisheries Association; leading enterprise in Qingdao’s Agricultural Industry.
II. Overview of the Company’s Industry during the Reporting Period
Overview of the Company’s industry: In recent years, China has strictly controlled the scale of distant-water fisheries, maintaining
the targets of keeping the number of distant-water fishing vessels under 3,000 and total distant-water fishery output at around 2.3
million metric tons. The Company’s fishing vessels operated in the high seas of the Pacific, Indian and Atlantic oceans, and the
seas around Antarctica, as well as the seas governed by relevant partner countries. In 2024, China’s distant-water fisheries output
reached 2.1891 million metric tons, down 5.74% year-on-year and accounting for 2.98% of the total production of aquatic
products. Overseas fishing is China’s strategic industry and plays an important role in building a "maritime community with a
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
shared future" and "a strong marine country" and implementing the "Belt and Road" initiative. It has great significance for
increasing the supply of high-quality domestic and foreign aquatic products, ensuring food safety, and promoting bilateral and
multilateral cooperation in the fishery. China’s overseas fishing started in 1985, and China has become one of the world’s major
overseas fishing countries over more than four decades of development. Climbing to the world’s top in size, China’s overseas
fishing industry is characterized by a gradually improving industrial structure, substantially improved equipment, much stronger
scientific and technological support, and an ever-improving management system. It is developing towards "transformation,
upgrading, and standardized management."
However, the industry still faces a series of challenges: overall technological support and comprehensive resource development
capabilities remain relatively weak, and there is still a gap compared to international advanced standards; rising domestic labor
costs and a shortage of professional crew members—particularly those in key positions—are expected to constrain the industry’s
development for the long term. Therefore, enterprises urgently need to increase investment in technology, accelerate the pace of
transformation and upgrading, and focus on enhancing core competitiveness to actively respond to the rapidly changing industry
environment.
Currently, in addition to rapid growth in major cities such as Beijing, Shanghai, and Guangzhou, the domestic tuna market is also
seeing the consumption potential of the mainland market being unlocked, forming a trend toward large-scale consumption. It is
foreseeable that as people’s living standards continue to rise—shifting from simply having enough to eat and eating well to
prioritizing nutrition and health—the domestic tuna consumption market is bound to grow rapidly in the future.
The National 15th Five-Year Development Plan explicitly states the need to “strengthen, optimize, and expand the marine industry,
and orderly advance the development and utilization of marine energy resources.” The development of the marine economy will
resolutely implement the new development philosophy, using scientific and technological innovation as the primary means to
move toward high-end, cluster-based, international, information-driven, and intelligent marine industries. This also provides a
significant boost to the sustainable development of the domestic tuna market. For Zhonglu Ocean Shipping, a company that has
consistently focused on the marine economy and adhered to a sustainable development strategy, the support and empowerment
provided by these macro-level policies will undoubtedly make its future development even more resolute and robust.
Note: The above data are sourced from the white paper The Development of China’s Offshore Fisheries and the 2024 National
Fisheries Economic Statistical Bulletin.
III. Analysis of Core Competitiveness
The Company is a comprehensive and export-oriented company engaged in overseas fishing that was incorporated in July 1999
with the approval of the Shandong Provincial People’s Government. It has a well-established industrial chain and is a leading
enterprise in Qingdao’s agricultural industry. As a comprehensive listed fishing company, the Company’s core competitiveness
lies in the following aspects: (1) Through more than 20 years of development, the Company has grown into a comprehensive
fishing enterprise that is engaged in a combination of businesses, including overseas fishing, deep processing, trading, cold storage
logistics, marine transportation, and entrepreneurship and investment in the modern marine industry. The Company’s main
businesses involve key links in the industrial chain. The businesses of the Company’s operating entities are highly associated,
which meets the conditions for holistically collaborative operations. This provides a guarantee for the Company to reform its
operations and strengthen and extend the industrial chain. (2) As one of the earliest companies engaged in overseas fishing in
China, the Company started production and operations early from a high ground with competent human resources and assets.
Through years of dedicated operations, the Company has gathered a pool of professionals specializing in relevant fields of the
overseas fishing industry. (3) The Company’s overseas fishing industry is part of China’s “Belt and Road” initiative and building a
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
strong marine country, and Shandong’s strategy of building a strong marine province. There are development opportunities from
the adjustment of the industrial depth. (4) By continuously cultivating the international sea transportation market, the Company
has established long-term, stable cooperation with customers and built a service brand with distinctive “Zhonglu characteristics,”
and enjoyed a good reputation on the Asia-Pacific marine cold storage transport market. (5)The Company has the earliest ultra-low
temperature refrigeration storage and tuna processing base in China, which has strengthened its competitive edge in tuna
processing and trading. (6) The Company carries out long range fishing in the Atlantic, Indian Oceans and Western-central Pacific,
reaches most of the world’s major ports with its cold storage transportation, and covers many countries with import and export.
With the implementation of the “Belt and Road” initiative, the countries along the “Belt and Road” will have stronger trust in each
other and establish closer cooperation. In addition, the Company and the governments at all levels have rolled out a suite of
development plans and industrial preference policies. All these have brought new opportunities for the development of the
Company.The Company will leverage the aforementioned advantages to pioneer, innovate, forge ahead, and proactively engage
itself in the conversion of old and new growth drivers. It will accelerate transformation and upgrading, vigorously extend the
industrial chain, and further improve its influence and competitiveness in domestic and even international markets.
IV. Analysis of Main Businesses
Refer to “I. Company’s Main Businesses during the Reporting Period” in “Section III The Management’s Discussion and
Analysis.”
(1) Components of operating revenue
Unit: RMB
Year-on-year
Proportion in Proportion in increase/decrease
Amount Amount
operating revenue operating revenue
Total operating
revenue
By industry
Long range fishing 736,075,102.47 49.51% 717,387,641.78 51.81% 2.60%
Cold storage
transportation
Cold storage
processing and 729,773,217.01 49.09% 618,325,021.60 44.66% 18.02%
trading
Others 6,936,760.01 0.47% 7,555,948.66 0.55% -8.19%
Offset of internal
-125,435,326.69 -8.44% -101,802,943.80 -7.35% 23.21%
transactions
By product
Long range fishing 736,075,102.47 49.51% 717,387,641.78 51.81% 2.60%
Cold storage
transportation
Cold storage
processing and 729,773,217.01 49.09% 618,325,021.60 44.66% 18.02%
trading
Others 6,936,760.01 0.47% 7,555,948.66 0.55% -8.19%
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Offset of internal
-125,435,326.69 -8.44% -101,802,943.80 -7.35% 23.21%
transactions
By region
China 926,599,878.54 62.33% 982,749,178.09 70.97% -5.71%
Foreign countries 685,528,157.81 46.11% 503,714,031.67 36.38% 36.09%
Offset of internal
-125,435,326.69 -8.44% -101,802,943.80 -7.35% 23.21%
transactions
By sales model
Direct sales 1,486,692,709.66 100.00% 1,384,660,265.96 100.00% 7.37%
(2) Industries, products, regions, sales models accounting for more than 10% of the Company’s operating revenue or
operating profits
? Applicable □Not applicable
Unit: RMB
Year-on-year Year-on-year Year-on-year
Operating Gross profit increase/decrea increase/decrea increase/decrea
Operating costs
revenue margin se in operating se in operating se in gross
revenue costs profit margin
By industry
Long range
fishing
Cold storage
transportation
Cold storage
processing and 729,773,217.01 682,201,281.19 6.52% 18.02% 17.33% 0.56%
trading
By product
Long range
fishing
Cold storage
transportation
Cold storage
processing and 729,773,217.01 682,201,281.19 6.52% 18.02% 17.33% 0.56%
trading
By region
China 926,599,878.54 855,610,864.46 7.66% -5.71% -3.53% -2.09%
Foreign
countries
By sales model
Direct sales 8.65% 7.37% 6.96% 0.35%
In the case where the statistical basis of the Company’s main business data was adjusted during the Reporting Period, the
Company’s adjusted main business data for the last one year on the statistical basis as at the end of the Reporting Period
□Applicable ? Not applicable
(3) Whether the Company’s revenue from the sales of physical goods exceeds its revenue from the provision of labor
services
? Yes □No
Industry category Item Unit 2025 2024 Year-on-year
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
increase/decrease
Sales volume Ton 60,645 59,784 1.44%
Production Ton 59,968 56,817 5.55%
Long range fishing
Inventory Ton 10,643 11,320 -5.98%
Sales volume Ton 23,250 20,265 14.73%
Cold storage
Production Ton 21,545 21,116 2.03%
processing and
trading Inventory Ton 5,448 7,153 -23.84%
Reasons for year-on-year changes by more than 30%
□Applicable ? Not applicable
(4) Performance of the Company’s significant sales contracts and significant purchase contracts as of the Reporting Period
□Applicable ? Not applicable
(5) Components of operating costs
Industry category
Unit: RMB
Industry
Item Proportion in Proportion in increase/decrea
category Amount Amount
operating costs operating costs se
Long range
Raw materials 115,327,160.52 8.49% 117,212,598.26 9.23% -1.61%
fishing
Long range
Fuel power 191,558,891.21 14.10% 195,190,153.49 15.37% -1.86%
fishing
Cold storage
Staff salaries 43,267,885.30 3.19% 44,289,760.73 3.49% -2.31%
transportation
Cold storage
Direct raw
processing and 626,550,379.67 46.13% 526,645,225.63 41.47% 18.97%
materials
trading
Note
The direct raw material cost in the operating costs of cold storage processing and trading increased by 18.97% year-on-year,
mainly due to the year-on-year growth in sales volume of cold storage processing and trading for the current period.
(6) Whether there was any change in the consolidated scope during the Reporting Period
□Yes ?No
(7) Any significant changes or adjustments to the Company’s businesses, products, or services during the Reporting Period
□Applicable ? Not applicable
(8) Key customers and key suppliers
The Company’s key customers
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Total sales to the top five customers (RMB) 670,539,621.92
Proportion of the total sales to the top five customers in the
total sales for the year
Proportion of the sales to the related parties of the total sales to
the top five customers in the total sales for the year
The Company’s top five customers
Proportion in the total sales
No. Customer’s name Sales (RMB)
for the year
Total -- 670,539,621.92 45.10%
Explanation of other situations related to the key customers
□Applicable ? Not applicable
Information of the Company’s key suppliers
Total purchases from the top five suppliers (RMB) 479,935,450.77
Proportion of the total purchases from the top five suppliers in
the total purchases for the year
Proportion of the purchases from the related parties of the total
purchases from the top five suppliers in the total purchases for 0.00%
the year
The Company’s top five suppliers
Proportion in the total
No. Supplier’s name Amount of purchase (RMB)
purchase for the year
Total -- 479,935,450.77 54.10%
Explanation of other situations related to the key suppliers
□Applicable ? Not applicable
During the reporting period, revenue from the Company’s trading operations accounted for more than 10% of total operating
revenue.
□Applicable ? Not applicable
Unit: RMB
Year-on-year Explanation of
increase/decrease significant changes
Selling expenses 4,291,510.60 4,225,496.40 1.56%
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Management expenses 70,322,958.25 64,063,224.51 9.77%
Financial expenses 15,407,094.25 14,213,726.76 8.40%
R&D expenses 6,428,549.07 6,267,079.11 2.58%
? Applicable □Not applicable
Expected impact on the
Name of key R&D
Purpose Progress Intended objective Company’s future
project
development
These materials
Improve fishing
Research and enhance fishing
Reduce fishing vessel efficiency and
Application of efficiency while being
operating costs and strengthen energy
Biodegradable capable of self- Completed
increase fishing conservation and
Materials in Tuna degradation, thereby
efficiency. environmental
Purse Seine Fisheries contributing to the goal
protection.
of a green ocean.
Reduce the operating
Localization retrofit of costs of vessels and To reduce costs for It is expected to reduce
marine auxiliary fulfill the purpose of spare parts, lubricating the operating costs and
Completed
engines, generators and energy conservation, oil, and fuels and costs economic performance
power stations green, and low-carbon for regular repairs. of vessels.
development.
The Company’s R&D personnel
Number of R&D personnel
(person)
Proportion of R&D personnel 2.35% 2.63% -0.28%
Educational backgrounds of R&D personnel
Bachelor’s degree 9 12 -25.00%
Master’s degree 5 4 25.00%
Diploma 6 6
Age groups of R&D personnel
Under 30 years old 2 2
Above 40 years old 12 15 -20.00%
Information of the Company’s R&D spending
R&D spending (RMB) 6,428,549.07 6,267,079.11 2.58%
Proportion of R&D spending
in operating revenue
Capitalized amount of R&D
spending (RMB)
Proportion of capitalized
R&D spending in R&D 0.00% 0.00%
spending
Reasons for and impact of significant changes in the Company’s R&D personnel
□Applicable ? Not applicable
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Reasons for significant changes in the proportion of total R&D spending in operating revenue as compared with the previous year
□Applicable ? Not applicable
Reasons for substantial changes in the capitalization rate of R&D spending and explanation of the reasonableness
□Applicable ? Not applicable
Unit: RMB
Year-on-year
Items 2025 2024
increase/decrease
Subtotal of cash inflows from
operating activities
Subtotal of cash outflows for
operating activities
Net cash flows from operating
activities
Subtotal of cash inflows from
investment activities
Subtotal of cash outflows for
investment activities
Net cash flows from
-113,190,354.29 -89,869,974.62 -25.95%
investment activities
Subtotal of cash inflows from
financing activities
Subtotal of cash outflows for
financing activities
Net cash flows from financing
activities
Increase in cash and cash
equivalents
Key factors for significant year-on-year changes in relevant data
? Applicable □Not applicable
(1) Net cash outflow from investing activities increased compared to the same period last year, primarily due to higher
expenditures on the acquisition and construction of fixed assets during the current period.
(2) Net cash flow from financing activities increased compared to the same period last year, primarily due to an increase in cash
received from borrowings during the current period.
Reasons for significant differences between the net cash flows from operating activities during the Reporting Period and the net
profits for the year
? Applicable □Not applicable
For details, refer to “Section VIII. VII. 53 Complementary information to the cash flow statement.”
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
V. Analysis of Non-main Businesses
? Applicable □Not applicable
Unit: RMB
Proportion in total Whether it is
Amount Reasons of formation
profits sustainable
It was mainly the
income from long-term
equity investment
Investment income -436,729.96 -0.96% No
calculated using the
equity method in the
Reporting Period.
It was mainly the
inventory revaluation
Asset impairment -22,907,869.69 -50.60% No
reserve accrued during
the Reporting Period.
Non-operating income 238,593.49 0.53% No
It was mainly the loss
Non-operating from the scrapping of
expenses fixed assets during the
Reporting Period.
VI. Analysis of Assets and Liabilities
Unit: RMB
At the end of 2025 At the beginning of 2025 Explanation of
Increase/D
Proportion in Proportion in significant
Amount Amount ecrease (%)
total assets total assets changes
Monetary
capital
Accounts
receivable
Inventory 381,905,920.98 17.61% 450,431,152.28 21.38% -3.77%
Investment
property
Long-term
equity 441,892.08 0.02% 878,622.04 0.04% -0.02%
investment
Fixed assets 927,820,225.94 42.79% 999,486,042.10 47.44% -4.65%
Construction in
progress
Short-term
borrowings
Contractual
liabilities
Long-term
borrowings
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The overseas assets account for a higher proportion
? Applicable □Not applicable
Control Proportion Whether
Specific measures to of overseas there is any
Reasons of Operation Return on
content of Asset size Location guarantee assets in the significant
formation model assets
assets asset Company’s impairment
security net assets risk
HABITAT Wholly-
INTERNA owned Vessel and
TIONAL subsidiary Panama personnel 22.08% No
CORPORA incorporate insurance
TION d overseas
Professional
management
AFRICA Majority-
team
STAR owned
FISHERIE subsidiary Ghana 16.66% No
S incorporate
vessel and
LIMITED d overseas
personnel
insurance
Professional
ZHONG management
Wholly-
GHA team
owned -
FOODS 120,747,24 Independen stationed
subsidiary Ghana 6,021,410 8.89% No
COMPAN 4.07 t operations overseas and
incorporate .62
Y vessel and
d overseas
LIMITED personnel
insurance
□Applicable ? Not applicable
Item Period-end book value Restricted types
Monetary capital
Fixed assets 432,974,053.41 Mortgage loans
Construction in progress 194,062,840.63 Mortgage loans
Intangible assets 48,074,703.98 Mortgage loans
Total 703,901,482.22
VII. Investment Analysis
? Applicable □Not applicable
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Investment amount for the Reporting Investment amount for the same period
Changes (%)
Period (RMB) in the previous year (RMB)
□Applicable ? Not applicable
? Applicable □Not applicable
Unit: RMB
Reaso
ns for
failure
Total
Total to
actual
Wheth Invest incom reach
Industr invest
er it is ment e the
ies ment Disclo
Invest an amoun Expect realize planne Disclo
involv amoun Project sure
Project ment invest t for Fund ed d as of d sure
ed in t as at progre index
name metho ment the source invest the end progre date (if
the the end ss (if
d in Report ment of the ss and any)
invest of the any)
fixed ing Report realize
ment Report
assets Period ing the
ing
Period expect
Period
ed
incom
e
Proces The
sing design
-term
Tuna and ed
Self- 37,539 loans,
Tradin trading 3,850, 65.17 capacit
constr Yes ,532.3 Self-
g of 989.53 % y is
uction 9 owned
Center aquatic not
fund
produc reache
ts d.
The
Cold-
Long- design
chain
term ed
Cold Self- wareh 78,587 147,62
loans, 76.00 capacit
Storag constr Yes ousing ,152.7 9,562.
Self- % y is
e No. 5 uction and 1 83
owned not
logisti
fund reache
cs
d.
Total -- -- -- ,142.2 9,095. -- -- 0.00 0.00 -- -- --
(1) Securities investment
□Applicable ? Not applicable
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The Company did not have securities investments during the Reporting Period.
(2) Derivative investment
□Applicable ? Not applicable
The Company did not have derivative investments during the Reporting Period.
VIII. Sale of Significant Assets and Equity
□Applicable ? Not applicable
The Company did not sell any significant assets during the Reporting Period.
□Applicable ? Not applicable
IX. Analysis of Key Shareholding Companies
? Applicable □Not applicable
Key subsidiaries and shareholding companies affecting the Company’s net profits by more than 10%
Unit: RMB
Company Company Main Registered Operating Operating
Total assets Net assets Net profits
name type business capital revenue profits
Shandong
Zhonglu
Oceanic Food 104,322,30 527,005,59 379,063,33 729,879,88 26,516,706. 23,679,873.
Subsidiary
(Yantai) processing 0.00 6.04 0.10 3.68 74 96
Food Co.,
Ltd.
HABITAT
Cold
INTERNA
storage 12,476,145. 299,870,94 239,699,96 123,093,23 23,605,594. 23,605,594.
TIONAL Subsidiary
transportati 60 3.28 1.56 1.20 66 66
CORPORA
on
TION
Shandong
Zhonglu
Haiyan Long range 221,617,34 579,417,49 388,948,22 393,404,47 6,776,925.6 5,952,413.5
Subsidiary
Oceanic fishing 9.00 7.60 7.87 0.47 3 6
Fisheries
Co., Ltd.
Acquisition and disposal of subsidiaries during the Reporting Period
□Applicable ? Not applicable
Information of key shareholding companies
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.: Operating profit for the reporting period was RMB 26,516,706.74,
representing a year-over-year increase of 32.17%, primarily due to a year-over-year increase in sales volume for cold storage
processing and trading during the period;
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
HABITAT INTERNATIONAL CORPORATION: Operating profit for the reporting period was RMB 23,605,594.66, a
decrease of 23.16% year-over-year, primarily due to a year-over-year decline in operating days resulting from ship dry-docking
and other factors during the period;
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd.: Operating profit for the reporting period was RMB 6,776,925.63,
representing a year-over-year increase of 137.75%. This was primarily due to higher catch volumes, lower unit costs, and
increased gross profit margins during the period.
X. Structured Entities Controlled by the Company
□Applicable ? Not applicable
XI. Prospects of the Company’s Future Development
With the implementation of its marine development planning, China has rolled out a series of preferential policies for the overseas
fishing industry since it is an important part of the planning. China’s overseas fishing industry is developing rapidly. However,
obtaining resources is still the main focus, and raw fish remains the main product while high value-added processed products,
market development, sales, and the production service support system are still weak. Currently, as China is carrying out the
conversion of old and new growth drivers, the overseas fishing industry will welcome new opportunities for adjustment,
transformation, and development. It is expected that the future development trends will be as follows: First, the oceanic fishing
industry will be stabilized. The fishing of pelagic fish and cephalopods will be expanded. Second, the trans-oceanic fishing
industry will be strengthened and improved. The transformation and upgrade of this industry will be promoted through a variety of
measures, including changing the cooperation models, improving management, upgrading fishing boats, and the merger and
acquisition of projects. Third, the cold storage, processing, and trading of aquatic products will be developed through the
improvement of the industrial structure and the extension of the industrial chain. Fourth, more efforts will be made to strengthen
the development of the production service support system for the fishing industry. Overseas oceanic fishing bases will be
developed to carry out value-added business activities, including fishing wharf services, fish warehousing and logistics, fishing
boat repairs, marine transportation, replenishment, and refueling services.
(I) Prospects of the Company’s main businesses
The Company will continue to develop its long range fishing operations with tuna purse seining as the core business. Tuna Purse
Seine Projects – WCPO Purse Seine Fishery: As a holder of the scarce WCPO purse seine fishing indicators, the two large-scale
tuna purse seiners, "Tailong 7" and "Tailong 9," have maintained stable catch volumes. The Company enjoys sound cooperative
relationships with customers and a stable sales channel for its catches. Atlantic Purse Seine Fishery: The Company will strengthen
management to ensure the continuity of vessel operations to the greatest extent possible and maintain a high rate of voyage
deployment. Longline Projects: While maintaining existing fishing access cooperation, the Company will actively explore new
fishing grounds. Jigging (Squid) Projects: Due to the advanced age of the existing vessels and their near-depleted production
capacity, the Company is currently advancing the renewal and modification project for two vessels. Concurrently, the Company is
assessing the feasibility of developing other squid jigging fishing grounds, aiming to continuously explore new fishing grounds
and resources, thereby cultivating new profit growth drivers. Trawl Projects: Two new-type trawlers equipped with advanced
technology, suitable for modern marine fishery production, and aligned with national industrial policies, are operating stably in
Ghanaian waters. This ensures the diversification of the Company's operational methods in distant-water fisheries cooperation and
maintains existing profit growth drivers.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The Company will strengthen and boost its maritime transportation. Maritime transportation is always a stable business segment in
the Company’s business performance. Depending on the specific situation of the maritime transportation market, the Company
will continue to phase out old vessels with small tonnages and upgrade relatively younger maritime transportation vessels with
moderate tonnages to maintain the position of its transportation fleet in the shipping industry.
Focusing on the future development direction of the cold storage processing and trading segment, the Company will vigorously
promote business extension and capability enhancement, driving product iteration and upgrading through technological
empowerment. First, establish a diversified and multidimensional product portfolio encompassing cooked food products, health
foods, skincare products, and more, leading the upgrade of domestic consumption and the transformation of dietary structures.
Second, deepen the "Three Focuses" business strategy—focusing on major markets, key customers, and large-scale projects—
while strengthening the "dual-line parallel advancement" sales model and continuing to build the "Zhonglu Tuna" brand. Third,
increase R&D investment in health-related fields such as biology and pharmaceuticals, and cultivate technological advantages in
areas including biotechnology and intelligent manufacturing. Fourth, promote the automation and intelligent transformation of
processing procedures, achieving a leap from "manufacturing" to "intelligent manufacturing," and safeguard industry-leading
processing technology through efficiency gains driven by smart solutions. Fifth, explore new business models such as platform
economy, sharing economy, and customized services to transcend traditional market boundaries and open up new avenues for
growth.
(II) Future development strategies
Closely aligning the strategic goals for its development, the Company will judge the overseas fishing situation, grasp opportunities
to expedite development, prevent risks, and stabilize business performance. The Company will also stick to the overseas fishing
industry as its main business, increase brand visibility, and extend the industrial chain according to the development vision of
“stabilizing fishing, consolidating the industrial chain model that integrates cold storage, processing, trading, and transportation,
improving product structures, and carrying out transformation and upgrading.”
(III) Work plan for 2026
The Company will uphold the concept of “reform-based, innovation-driven, standardized, and steady development,” revolve
around the guidelines for “maintaining growth, emphasizing standards, adjusting structures, and promoting transformation,” and
focus on improving its development quality. With the purpose of increasing economic returns, the Company will convert old
growth drivers into new ones, develop markets, and drive the construction of key projects. It will strengthen the business
foundation, seek progress while maintaining stable development, blaze new trails, create new models, and take a combination of
measures. Centered around the key problems restricting its development, the Company will manage production, operations,
transformation, market development, and standardized management. It will proactively cultivate new profit growth points and
continuously improve its control, competitiveness, influence, and anti-risk capabilities to ensure the accomplishment of the annual
targets. In 2023, the Company will do the following work: 1) improve the management of seining projects, develop more
supporting measures, develop diverse markets, and increase project profitability. The Company plans to replace an old tuna purse
seiner with a new one .2) It will proceed with the modernization of two squid jigging vessels while assessing the feasibility of
developing other squid fishing grounds, continuing to explore new fishing grounds and develop new resources to create new
sources of profit growth. 3) At present, the Southern Pacific tuna maritime transportation market has not reached saturation, with
abundant room for development. Hence, the Company plans to build a cold storage transportation vessel.4) We will continue to
advance the construction of the Tuna Trading Center and the intelligent multi-functional cold storage facility in Phase I, Section B
of the Zhonglu Marine Innovation Industrial Park, laying the foundation for the company’s product production and cold storage
logistics.5)proactively develop and extend cold storage processing and trading services, step up efforts to develop new products,
deep-processed products, and other high-value-added products, create new sales models, and cultivate new profit growth points;
management innovation.”
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(IV) Risks facing the Company and countermeasures
decreases in fishing resources will have a greater impact on the Company’s profits. Cyclic changes, climates, hydrological
conditions, and other relevant conditions are all likely to cause fluctuations in fishing resources. Countermeasures: The Company
will develop new fisheries, dispatch vessels on a scientific basis, upgrade fishing and production equipment, and gradually
improve production vessels. It will make science-based and reasonable arrangements for vessel maintenance, equipment repair,
materials, fish baits, spare parts, and logistical support for personnel to ensure high sailing rates.
to surge and thereby squeezing profit margins. Countermeasures: Plan fuel procurement schedules and volumes reasonably; solicit
and compare quotes from various suppliers in advance to minimize fuel procurement costs; and flexibly adjust production
schedules, considering measures such as phased vessel idling and docking to reduce fuel consumption and costs.
adverse impact on revenue settled in foreign currencies. The exchange rate risk facing the seafood processing business remains
significant. Mitigation Measures: Accurately forecast exchange rate trends, manage exchange rate risk in accordance with the
principle of exchange rate neutrality, and implement appropriate measures in response to potential exchange rate fluctuations to
minimize or avoid losses that may result from such fluctuations.
will proactively promote the replacement of aged boats, improve asset allocation, and prevent safety risks.
XII. Reception of Surveys, Communications, and Interviews during the Reporting Period
? Applicable □Not applicable
Major content
Type of Basic
Time of Place of Mode of Reception discussed and
reception information
reception reception reception subject documents
subject index of survey
provided
The Company’s
production,
operations, and
Phone Individual other relevant
January 8, 2025 Online Individual None
communication investors information
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
February 21, Phone Individual other relevant
Online Individual None
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
Phone Individual other relevant
March 31, 2025 Online Individual None
communication investors information
were discussed;
no documents
were provided.
May 26, 2025 Online Phone Individual Individual The Company’s None
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
communication investors production,
operations, and
other relevant
information
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
Phone Individual other relevant
June 10, 2025 Online Individual None
communication investors information
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
Phone Individual other relevant
June 23, 2025 Online Individual None
communication investors information
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
Phone Individual other relevant
June 24, 2025 Online Individual None
communication investors information
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
Phone Individual other relevant
July 14, 2025 Online Individual None
communication investors information
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
Phone Individual other relevant
August 6, 2025 Online Individual None
communication investors information
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
September 25, Phone Individual other relevant
Online Individual None
were discussed;
no documents
were provided.
September 26, Phone Individual The Company’s
Online Individual None
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
operations, and
other relevant
information
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
October 11, Phone Individual other relevant
Online Individual None
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
October 28, Phone Individual other relevant
Online Individual None
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
November 12, Phone Individual other relevant
Online Individual None
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
November 13, Phone Individual other relevant
Online Individual None
were discussed;
no documents
were provided.
The Company’s
production,
operations, and
November 25, Phone Individual other relevant
Online Individual None
were discussed;
no documents
were provided.
XIII. Implementation of Market Value Management System and Valuation Enhancement
Plan
Whether the Company has established a market value management system.
? Yes □No
Whether the Company has disclosed the valuation enhancement plan.
? Yes □No
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The 23rd meeting (extraordinary meeting) of the 8th Board of Directors reviewed and approved the Valuation Enhancement Plan
and the Market Value Management System. The Company will implement a combination of measures, including strengthening
core business operations, enhancing corporate reputation, improving shareholder returns, exploring restructuring opportunities, and
establishing long-term incentive mechanisms. These initiatives aim to increase the Company’s investment value. For details,
please refer to the Shandong Zhonglu Oceanic Fisheries Co., Ltd. Valuation Enhancement Plan (Announcement No.: 2025-05)
and the Shandong Zhonglu Oceanic Fisheries Co., Ltd. Market Value Management System, published on www.cninfo.com.cn on
March 1, 2025.
XIV. Implementation of the “Better Quality, Higher Investment Returns” Action Plan
Whether the Company has disclosed the “Better Quality, Higher Investment Returns” action plan.
□Yes ? No
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section IV Corporate Governance, Environmental and Social
I. Basic status of corporate governance
During the reporting period, in accordance with the requirements of laws, regulations, and relevant normative documents such as
the Company Law, the Securities Law, the Governance Standards for Listed Companies, and Self-regulatory Guideline No. 1 of
the Shenzhen Stock Exchange for Listed Companies - Standardized Operation of Main Board Listed Companies, the Company
continuously improved its corporate governance structure, further standardized its operations, and improved its governance level.
The shareholders’ meeting, board of directors were all be held strictly in accordance with regulations and norms, and the directors
can fulfill their duties conscientiously and diligently.
Are there significant differences between the actual situation of corporate governance and laws, administrative regulations and the
regulations on listed company governance issued by the China Securities Regulatory Commission?
□Yes ? No
There is no significant difference between the actual situation of corporate governance and laws, administrative regulations and the
regulations on listed company governance issued by the China Securities Regulatory Commission.
II. The independence of the Company relative to its controlling shareholders and actual
controllers in guaranteeing the Company’s assets, personnel, finance, institution, business,
and other aspects
During the reporting period, the Company strictly operated in accordance with laws, regulations, and rules such as the
Company Law and the Articles of Association, and established a sound corporate governance structure. The Company is
completely separated from its controlling shareholders and actual controllers in terms of assets, personnel, finance, institution, and
business, and has independent and complete business and independent management capabilities.
funds are occupied by the controlling shareholder, and the Company's assets are completely independent of the controlling
shareholder.
system, with an independent workforce. The Company's general manager, deputy general manager, financial manager, board
secretary and other senior management personnel have not held any administrative positions other than directors in the controlling
shareholders or other enterprises under their control, and all receive compensations from the Company. The Company's financial
personnel also do not hold part-time positions in controlling shareholders or other enterprises under their control.
management and accounting systems, the Company is capable of making financial decisions independently. An independent bank
account is opened and taxes are paid independently.
controlling shareholders in terms of institution. The shareholders' meeting, board of directors, all operate independently and have
independent decision-making and execution capabilities.
independent of the controlling shareholders, and there is no horizontal competition with the controlling shareholders.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
III. Horizontal competition
□Applicable ? Non applicable
IV. Information on directors and senior management personnel
Number
Number Number Number
of Reasons
of of of
shares for
shares shares shares
Employ Term held at Other increase
Term increase reduced held at
Name Gender Age Position ment start the changes or
end date d in the in the the end
status date beginnin (shares) decrease
current current of the
g of the of
period period period
period shares
(shares) (shares) (shares)
(shares)
Chair
man,
Party
commi
Nove
ttee Januar
Liang Incumbe mber
Male 53 secreta y 15,
Shanglei nt 19,
ry, and 2029
chairm
an of
Labor
Union
Direct
or and
June Januar
Wang genera Incumbe
Male 57 07, y 15,
Huan l nt
manag
er
Zeng April Januar
Incumbe
Xianzho Male 57 Director 25, y 15,
nt
ng 2024 2029
Indepen May Januar
Zhong Incumbe
Male 58 dent 12, y 15,
Zhigang nt
director 2022 2029
Wu Indepen April Januar
Incumbe
Henggu Male 47 dent 25, y 15,
nt
ang director 2024 2029
Indepen Januar Januar
Zhu Incumbe
Female 48 dent y 15, y 15,
Wei nt
director 2026 2029
Emplo
Li anuary Januar
yee Incumbe
Yeshe Male 56 15, y 15,
directo nt
ng 2026 2029
r
Deputy
May Januar
Meng General Incumbe
Male 56 16, y 15,
Fanyong Manage nt
r
Fu Male 53 Financia Incumbe Januar 2
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Chuanh l nt y 04, Januar
ai director 2019 y 15,
Deputy
Dong April Januar
General Incumbe
Guangm Male 54 19, y 15,
Manage nt
ing 2022 2029
r
Yu Board Januar Januar
Incumbe
Xiaoqi Male 53 secretar y 02, y 15,
nt
ang y 2025 2029
Board Februa Januar
Liang
Male 53 secreta Resign ry 02, y 02,
Shanglei
ry 2021 2025
Total -- -- -- -- -- -- 0 0 0 0 0 --
Whether there were any resignation of directors and dismissal of senior executives during the reporting period
? Yes □No
Mr. Liang Shanglei has applied to resign from the position of Secretary to the Board of Directors due to a change in work
arrangements. The resignation report shall take effect upon delivery to the Board of Directors of the Company. After stepping
down as Secretary to the Board of Directors, Mr. Liang will continue to serve as Chairman of the Board and Secretary of the Party
Committee of the Company. For further details, please refer to the Announcement on the Resignation and Appointment of the
Secretary to the Board of Directors (Announcement No.: 2025-02) published on January 3, 2025, on the CNINFO website
(www.cninfo.com.cn).
Changes in Directors and Senior Management of the Company
? Applicable □Not applicable
Name Position Type Date Reasons
Liang Shanglei Board secretary Resign January 02, 2025 Job transfer
Yu Xiaoqiang Board secretary Appointment January 02, 2025 Job transfer
Professional background, main work experience, and current main responsibilities of current directors and senior management
personnel of the Company
Liang Shanglei, male, born in October 1972, is a university graduate and a member of the Communist Party of China. His
previous positions include: officer of the Political Department of the Communication Corps of the Second Artillery 54 Base;
political instructor of the Seventh Brigade of the Jinan Detachment of the Armed Police Corps Shandong Corps; director and
deputy political commissar of the Political Division of the Shandong Provincial Corps Hospital of the Armed Police Corps; chief
staff member and publicity officer of the Capital Operation and Income Management Division, and deputy director of the
Complaints and Complaints Office (Party Committee Propaganda and Mass Work Department), of the Shandong Provincial State-
owned Assets Supervision and Administration Commission; and employee director, deputy general manager, secretary of the
Disciplinary Committee, deputy Party secretary, and Secretary to the Board of Directors of Shandong Zhonglu Oceanic Fisheries
Co., Ltd. He is currently the Party secretary, chairman, and chairman of the Labor Union of the Company.
Wang Huan, male, born in June 1968, holds a college degree and a Bachelor of Economics. His previous positions include:
staff member of the Overseas Department of Shandong Provincial Aquatic Products Enterprise Group Corporation and deputy
section-level officer stationed at the Fisheries Representative Office in Ghana; deputy section-level officer of the Trade
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Department, deputy manager of the Ocean Management Department, and person in charge (Chief Representative) of the Fisheries
Project in Gambia of Shandong Zhonglu Oceanic Fisheries Co., Ltd.; general manager and chairman of Shandong Zhonglu
Aquatic Shipping Co., Ltd.; and deputy general manager of Shandong Zhonglu Oceanic Fisheries Co., Ltd. He currently serves as
a director and the general manager of the Company.
Zeng Xianzhong, male, born in August 1968, is a provincial spare-time university graduate, an auditor, and a member of the
Communist Party of China. His previous positions include: deputy head and senior business manager of the Investment and
Development Department, and deputy head and senior business manager of the Asset Management Department, of Shandong
State-owned Assets Investment Holding Co., Ltd.; supervisor of Inspur Group Co., Ltd.; and chairman of the board of supervisors
of Integrated Electronic Systems Lab Co., Ltd. He currently serves as a full-time external director of Shandong State-owned
Assets Investment Holding Co., Ltd., and serves as a director of the Company.
Zhong Zhigang, male, born in November 1967, holds a master's degree, is a first-class lawyer, and a member of the
Communist Party of China. He is currently a senior partner of Grandall Law Firm (Jinan). He serves as an independent director of
the Company, Huafang Co., Ltd., and Weihai Baihe Co., Ltd.
Wu Hengguang, male, born in February 1979, is a member of the Communist Party of China and a doctoral candidate. He
currently serves as Chair of the Department of Auditing and Professor at Shandong University of Finance and Economics. He
currently serves as an independent director of the Company, Shandong Yinuowei Polyurethane Co., Ltd., and Jinneng Technology
Co., Ltd.
Zhu Wei, female, born in October 1977, is a member of the Communist Party of China. She is a doctoral candidate and a non-
practicing certified public accountant. She currently serves as Chair of the Department of Financial Management at the School of
Accounting, Shandong University of Finance and Economics. She currently serves as an independent director of the Company,
Shandong Publishing & Media Co., Ltd., and Hope-Wish Photoelectronics Technology Co., Ltd.
Li Yesheng, male, born in December 1969, holds a college degree and is a member of the Communist Party of China. His
previous positions include: staff member of the International Cooperation Department and deputy section chief of the Personnel
and Labor Department of Shandong Provincial Aquatic Products Enterprise Group Corporation; and section chief of the Human
Resources Department, deputy head of the Human Resources Department, and head of the Risk Management Department (Legal
Affairs Department) of Shandong Zhonglu Oceanic Fisheries Co., Ltd. He currently serves as an employee director and director of
the General Manager's Office (Party Committee Office) of Shandong Zhonglu Oceanic Fisheries Co., Ltd. He concurrently serves
as a director of Zhonglu Oceanic (Qingdao) Industrial Investment Development Co., Ltd. and a director of Shandong Zhonglu
Aquatic Shipping Co., Ltd.
Meng Fanyong, male, born in January 1970college degree, economist, member of the Communist Party of China. Served as
Deputy Chief of the Import and Export Department of Shandong Aquatic Enterprise Group Corporation, Deputy Manager of
Shandong Wanxiang Aquatic Products Co., Ltd., Chairman and General Manager of Shandong Zhonglu Oceanic (Yantai) Foods
Co., Ltd., and chairman of Shandong Zhonglu Ocean Refrigeration Co., Ltd.. He is currently a member of the party committee and
deputy general manager of the Company.
Fu Chuanhai, male, born in February 1972, of Han ethnicity, holds a postgraduate degree. He is a certified public accountant
and a senior accountant. His previous positions include: audit project manager and deputy department manager of Shandong
Zhengyuan Hexin Certified Public Accountants Firm; deputy head of the Finance Department of Himin Solar Group; deputy
director of the Audit Center of Linuo Group; chief accountant of China Resources Shandong Pharmaceutical Co., Ltd.; and chief
financial officer of Zhongtai Xincheng Asset Management Co., Ltd. He currently serves as the chief financial officer of Shandong
Zhonglu Oceanic Fisheries Co., Ltd.
Dong Guangming, male, born in July 1971, a university graduate, a member of the Communist Party of China. Served as a
member of the supply department of Jinan Mingshui Chemical Fertilizer Factory, technician and construction leader of Puji Radio
and Television Station of Zhangqiu Radio and Television Jade Bird Information Network Co., Ltd., deputy station chief and
station chief of Diaozhen Radio and Television Station of Zhangqiu Radio and Television Jade Bird Information Network Co.,
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Ltd., station chief of Zhangqiu City Radio and Television Bureau Puji Radio and Television Station, Station Master of Shuangshan
Rural Radio Station of Zhangqiu Branch of Shandong Radio and Television Network Co., Ltd., Senior Director and Director of the
Administration and Comprehensive Department of Juneng Capital Management Co., Ltd., Member of the Party Committee and
Secretary of the Disciplinary Committee of Zhongtai Xincheng Asset Management Co., Ltd. He is a member of the Party
committee and deputy general manager of the Company.
Yu Xiaoqiang, male, born in May 1972, holds a master's degree, is a senior economist, and a member of the Communist Party
of China. His previous positions include: staff member of the Overseas Department and business supervisor of the Ghana Project
of Shandong Aquatic Products Enterprise Group Corporation; and cadre, deputy section chief, manager, and head of the Oceanic
Management Department of Shandong Zhonglu Oceanic Fisheries Co., Ltd. He currently serves as the secretary to the board of
directors, assistant general manager, and head of the Enterprise Development Department (Risk Management and Control
Department) of Shandong Zhonglu Oceanic Fisheries Co., Ltd. He concurrently serves as chairman and Party branch secretary of
Zhonglu Oceanic (Qingdao) Industrial Investment Development Co., Ltd., a director of Shandong Zhonglu Oceanic (Yantai) Food
Co., Ltd., and a director of Zhongtai Xincheng Asset Management Co., Ltd.
Cases where the controlling shareholder and actual controller also serve as the listed company’s chairman and general manager
□Applicable ? Not applicable
Employment status in shareholder units
? Applicable □Not applicable
Whether to receive
Shareholder unit Positions held in remuneration and
Staff name Term start date Term end date
name shareholder allowances in
shareholder
Shandong State- Full-time external
owned Assets director and
Zeng Xianzhong Yes
Investment supervisor
Holding Co., Ltd.
Employment in other units
? Applicable □Not applicable
Whether to receive
Positions held in remuneration
Staff name Other unit names Term start date Term end date
other units allowance in other
units
Grandall Lawyers
Zhong Zhigang Senior Partner Yes
(Jinan) Firm
Shandong Chair of the
University of Department of
Wu Hengguang Yes
Finance and Auditing,
Economics Professor
Shandong Chair of the
University of Department of
Zhu Wei Yes
Finance and Financial
Economics Management
Punishments of the Company’s current and resigned directors and senior executives during the reporting period in the past three
years by securities regulatory agencies
□Applicable ? Not applicable
Decision-making procedures, determination basis and actual payment of remuneration for directors and senior executives
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The compensation for non-executive directors appointed by the Company’s controlling shareholder is administered and paid by
their respective companies. The compensation for independent directors appointed by the Company is determined in accordance
with the limits approved at the Company’s 2007 Annual General Meeting. The compensation for the Company’s executive
directors and senior management is determined in accordance with the Company’s compensation management regulations.
Remuneration of directors and senior executives of the Company during the reporting period
Unit: RMB 10,000
Whether to
Total pre-tax receive
Employment remuneration remuneration
Name Gender Age Position
status received from from related
the Company parties of the
Company
Liang Shanglei Male 53 Chairman Incumbent 89.23 No
Director and
Wang Huan Male 57 general Incumbent 89.53 No
manager
Male Independent
Zhong Zhigang 58 Incumbent 4 No
director
Male Independent
Wu Hengguang 47 Incumbent 4 No
director
Male Deputy General
Meng Fanyong 56 Incumbent 67.55 No
Manager
Fu Chuanhai Male 53 Financial director Incumbent 57.33 No
Dong Male Deputy General
Guangming Manager
Yu Xiaoqiang male 53 Board secretary Incumbent 43.08 No
Total -- -- -- -- 425.68 --
Basis for evaluating the actual compensation received by all
the Company’s relevant compensation and performance
directors and senior management at the end of the reporting
evaluation management systems
period:
Status of performance evaluation for all directors and senior
Implemented in accordance with the Company’s relevant
management regarding actual compensation received as of the
regulations
end of the reporting period:
Deferred payment arrangements for compensation actually
During the reporting period, no directors or senior management
received by all directors and senior management at the end of
had deferred payment arrangements.
the reporting period:
Status of clawback provisions regarding compensation actually
received by all directors and senior management as of the end None
of the reporting period:
Other information
□Applicable ? Not applicable
V. Performance of duties by directors during the reporting period
Attendance of Directors at Board Meetings and Shareholders' Meetings
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The number
Number of Whether fail
of board Number of
board Number of Number of to attend two Attendance
meetings that board
Director meetings board absences board at
should be meetings
name attended by meetings from board meetings in shareholders'
attended in attended on
corresponden entrusted meetings person in a meetings
this reporting site
ce row?
period
Liang
Shanglei
Wang Huan 10 0 10 0 0 否 1
Zeng
Xianzhong
Zhong
Zhigang
Wu
Hengguang
Explanation for failing to attend two consecutive Board Meetings in person
Whether the directors raise objections to the relevant matters of the Company
□Yes ? No
During the reporting period, the directors raised no objection to the relevant matters of the Company.
Whether the directors’ suggestions to the Company are adopted
? Yes □No
Explanation by the directors on whether the relevant proposals of the Company are adopted or not adopted
During the reporting period, the directors of the Company strictly followed the relevant provisions and requirements of the
"Articles of Association", "Rules of Procedure of the Board of Directors" and relevant laws and regulations, actively attended the
board of directors and shareholders' meetings, and performed their duties diligently. Relevant opinions were put forward for
governance and business decision-making of the Company based on the actual situation of the Company. After full
communication and discussion, a consensus was formed, and the implementation of the resolutions of the board of directors was
resolutely supervised and promoted to ensure scientific, timely and efficient decision-making, and safeguard the legitimate rights
and interests of the Company and all shareholders.
VI. The special committees under the board of directors during the reporting period
Important Other Specific
Number of comments situations in circumstance
Committee Date of Conference
Membership meetings and which duties s of the
name holding content
held suggestions are objection (if
put forward performed any)
Resolutions Wu 1 April 24, 1. Proposal According to
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
of the first Hengguang,Z 2025 on reviewing the actual
meeting of hong the full text situation of
the audit Zhigang,Zen and abstract the company,
committee of g Xianzhong of the 2024 after full
the board of annual report communicati
directors in 2. Proposal on and
the 2024 all proposals
annual were
financial unanimously
report passed.
on reviewing
the profit
distribution
plan for 2024
on reviewing
the
performance
of the audit
committee
and the
summary
report on the
audit work of
the
accounting
firm in 2024
on reviewing
the 2024
internal
control self-
evaluation
report
on reviewing
the provision
for asset
impairment
in 2024
on reviewing
the first
quarterly
report of
on reviewing
the internal
audit work
plan for 2025
on the
Tenure
Economic
Responsibilit
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
y Audit
Report of
Comrade
Han Xinguo
on the Audit
Report on the
Procedures
and Financial
Settlement of
the Project
for
Constructing
Two
Trawlers
on the Audit
Report of the
Company's
Ghana
Representati
ve Office
on reviewing
According to
the 2025
the actual
semi-annual
situation of
The second report and its
the company,
meeting of Wu summary
after full
the audit Hengguang,Z 2. Proposal
August 25, communicati
committee of hong 1 on the
the board of Zhigang,Zen Reappointme
discussion,
directors in g Xianzhong nt of
all proposals
were
Determinatio
unanimously
n of Their
passed.
Remuneratio
n
According to
the actual
situation of
The third
Proposal on the company,
meeting of Wu
reviewing the after full
the audit Hengguang,Z
October 27, third communicati
committee of hong 1
the board of Zhigang,Zen
report of discussion,
directors in g Xianzhong
were
unanimously
passed.
According to
Resolutions
the actual
of the first Proposal on
Zhong situation of
meeting of reviewing the
Zhigang, the company,
nomination December job
Liang 1 after full
committee of 26, 2025 qualifications
Shanglei, Wu communicati
the board of of candidates
Hengguang on and
directors in for director
discussion,
all proposals
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
were
unanimously
passed.
According to
the actual
situation of
The first
Liang the company,
meeting of
Shanglei, Proposal on after full
the Strategy
Zeng August 25, the communicati
Committee 1
Xianzhong, 2025 investment on and
of the Board
Zhong plan of 2025 discussion,
of Directors
Zhigang all proposals
in 2025
were
unanimously
passed.
According to
the actual
situation of
The second
Liang Proposal on the company,
meeting of
Shanglei, the after full
the Strategy
Zeng November Adjustment communicati
Committee 1
Xianzhong, 28, 2025 to the 2025 on and
of the Board
Zhong Investment discussion,
of Directors
Zhigang Plan all proposals
in 2025
were
unanimously
passed.
on the 2024 the actual
The first
Performance situation of
meeting of
Zhong Assessment the company,
the
Zhigang, of Senior after full
remuneration
Zeng December Management communicati
and appraisal 1
Xianzhong, 26, 2025 2.Proposal on and
committee of
Wu on the Term discussion,
the board of
Hengguang Incentive all proposals
directors in
Assessment were
of Senior unanimously
Management passed.
According to
the actual
The second
situation of
meeting of Proposal on
Zhong the company,
the the Special
Zhigang, after full
remuneration Incentive
Zeng December communicati
and appraisal 1 Scheme for
Xianzhong, 31, 2025 on and
committee of the General
Wu discussion,
the board of Manager of
Hengguang all proposals
directors in 2025
were
unanimously
passed.
VII. Work of the Audit Committee
Whether the Audit Committee found any risks in the Company in the supervision activities during the reporting period
□Yes ? No
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The Audit Committee had no objection to the supervisory matters during the reporting period.
VIII. The Company's employees
Number of active employees of the parent company at the end
of the reporting period (person)
Number of active employees of major subsidiaries at the end of
the reporting period (person)
Total number of active employees at the end of the reporting
period (person)
Total number of employees receiving salaries in the current
period (person)
Number of retired employees (persons) for whom parent
company and major subsidiaries need to bear expenses
Professional composition
Major Constituent Category The number of professional constituents (person)
Production staff 626
Salesperson 29
Technical staff 36
Financial officer 37
Administration staff 124
Total 852
Education level
Education level category Quantity (person)
Master 32
Undergraduate 119
Specialist 111
Secondary school 173
High school and below 417
Total 852
Scientifically formulates a salary management system based on the market, and improves a comprehensive salary system that pays
for "position, performance, and ability".
According to the Company's high-quality development needs and the diverse training needs of employees, various forms of
employee trainings are carried out in different levels and categories.
□Applicable ? Not Applicable
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
IX. The Company's profit distribution and capitalization of capital reserves
Profit distribution policy during the reporting period, especially the formulation, implementation or adjustment of the cash
dividend policy
□Applicable ? Not Applicable
The Company made a profit during the reporting period and the parent company’s profits available to shareholders were positive,
but no cash dividend distribution plan was proposed
□Applicable ? Not Applicable
Profit distribution and conversion of capital reserves into share capital during the reporting period
□Applicable ? Not Applicable
The Company plans not to distribute cash dividends or bonus shares, or increase share capital from public reserves.
X. Implementation of the Company's equity incentive plan, employee stock ownership plan
or other employee incentive measures
□Applicable ? Not Applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employee
incentive measures and their implementation.
XI. Construction and implementation of internal control system during the reporting period
The Company has a relatively complete internal control system, which is constantly updated, supplemented and revised according
to development changes and actual conditions. The Company's operations strictly implement various internal control systems.
□Yes ? No
XII. The Company's management and control over subsidiaries during the reporting period
Problems
Company Integration Resolve Follow-up
Integration plan Encountered in Measures taken
Name progress progress solution plan
Integration
not applicable not applicable not applicable not applicable not applicable not applicable not applicable
There are abnormalities in the management and control of subsidiaries
□Yes ?No
XIII. Internal control self-assessment report or internal control audit report
Disclosure date of the full text of the
April 24, 2026
internal control evaluation report
Disclosure index of the full text of the www.cninfo.com.cn
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
internal control evaluation report
The ratio of the total assets of the units
included in the evaluation scope to the
total assets of the Company's
consolidated financial statements
The ratio of the operating income of
units included in the evaluation scope to
the operating income of the Company's
consolidated financial statements
Defect identification standard
category financial report non-financial reporting
Major flaw:
a. Violation of national laws and
Major flaw:
regulations, such as environmental
a. Directors, supervisors and senior
pollution;
executives commit fraud;
b. Project decision-making procedures
b. The external audit found that there
are unscientific and lack of democratic
was a material misstatement in the
decision-making procedures lead to
financial statements of the current
decision-making mistakes;
period, but the internal control failed to
c. resignation of management personnel
discover the misstatement during the
or technical personnel;
operation;
d. Frequent negative media news;
c. Ineffective supervision of internal
e. The results of internal control
control by the audit committee and
evaluation, especially major or important
internal audit agency;
deficiencies have not been rectified;
Important deficiencies: single
Qualitative standard f. Lack of system control or systematic
deficiencies or together with other
failure of systems for important
deficiencies lead to the inability to
businesses.
prevent or discover and correct the
Important defect: The seriousness of the
misstatements in the financial report in a
nature of the business involved in a
timely manner, although they do not
single defect or together with other
reach and exceed the major deficiencies,
defects, and its direct or potential
but should still attract the attention of the
negative impact, do not reach or exceed
management; other situations are
the major defect, but should still attract
determined according to the degree of
the attention of the management; other
impact.
situations are determined according to
Common deficiencies: other internal
the degree of impact.
control deficiencies that do not constitute
Common deficiencies: other internal
major or important deficiencies.
control deficiencies that do not constitute
major or important deficiencies.
The quantitative standard for internal The amount of direct property loss is
control deficiencies in financial reports is compared with a certain percentage of
determined by their impact on financial the Company's total profit in the current
statements, that is, comparing the amount consolidated financial statements to
misstated or omitted (that is, the amount determine the type of internal control
affected by internal control deficiencies) defects, as follows:
by finance statements which may be or If the amount of direct property loss is
have been caused by internal control greater than 5% of the total profit, it shall
Quantitative standard
deficiencies with certain proportion of be judged as a major defect;
the total profit in the Company’s current If the amount of direct property loss is
consolidated financial statements, so as greater than 3% and less than 5%
to determine the type of internal control (inclusive) of the total profit, it is judged
defects, as follows: as an important defect;
If the impact of internal control defects is If the amount of direct property loss is
greater than 5% of the total profit, it is less than 3% (inclusive) of the total
judged as a major defect; profit, it is judged as a common defect.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
If the impact of internal control defects is
greater than 3% and less than 5%
(inclusive) of the total profit, it is
determined to be an important defect;
If the impact of internal control defects is
less than 3% (inclusive) of the total
profit, it is judged as a common defect.
Number of major deficiencies in
financial reports (pieces)
Number of major deficiencies in non-
financial reporting (pieces)
Number of important deficiencies in
financial reports (pieces)
Number of important deficiencies in non-
financial reporting (pieces)
? Applicable □Not applicable
Deliberative Opinion Paragraph in Internal Control Audit Report
We believe that your Company maintained effective internal control over financial reporting in all material respects in accordance
with the Basic Standards for Enterprise Internal Control and relevant regulations on December 31, 2025.
Disclosure of Internal Control Audit Report Disclosure
Disclosure date of the full text of the internal control audit
April 24, 2026
report
Internal control audit report full text disclosure index www.cninfo.com.cn
Types of Internal Control Audit Report Opinions Standard unqualified opinion
Whether there are material deficiencies in non-financial
No
reporting
Does the accounting firm issue an internal control audit report with non-standard opinions?
□Yes ? No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of
directors
? Yes □No
Whether an internal control non-standard audit opinion was issued during the reporting period or the previous year
□Yes ? No
XIV. The rectification of problems in the self-examination of the special action of corporate
governance of listed companies
Not applicable
XV. Disclosure of Environmental Information
Whether the listed company and its principal subsidiaries are included in the list of enterprises required by law to disclose
environmental information
□Yes ? No
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
XVI. Social Responsibility
(I) Supporting Economic and Social Development
We have proactively supported the broader economic and social development agenda by selecting three officials to join the
provincial ‘Four-in’ task force and one official to join the provincial ‘First Secretary’ task force. These officials are playing an
active role in supporting industrial development, improving people’s livelihoods and well-being, and promoting rural revitalization,
thereby driving high-quality economic and social development.
(II) Carrying Out Volunteer Services
We are vigorously implementing the Humanistic Care Initiative, regularly organizing activities such as visits and goodwill
gestures for frontline seafarers, recuperation and rest programs for frontline staff, and assistance for employees facing financial
hardship. We are also implementing care measures such as health check-ups for staff and honorable retirement ceremonies,
ensuring that employees genuinely feel the organization’s care and warmth. We have thoroughly carried out the ‘I Do Practical
Things for the People’ initiative, organizing staff and cadres to engage with local communities and participate in voluntary
activities such as blood donation drives, charitable support for farmers, legal awareness campaigns, community clean-up initiatives,
and visits to support those in need, thereby contributing to the development of spiritual civilization in the new era.
XVII. Consolidate and expand the achievements of poverty alleviation and rural
revitalization
Not applicable
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section V Important Matters
I. Fulfillment of commitments
the Company and other relevant parties, and commitments that have not been fulfilled by the end of the
reporting period
? Applicable □Not applicable
Commitment Commitment Commitment Commitment
Reason Promising party Fulfillment
type content time period
Company does
not directly or
indirectly own
any shares,
equities or
interests in any
other
enterprises
(hereinafter
collectively
referred to as
"Competitors")
that may
compete with
Zhonglu
OCEANIC, and
will not directly
Shandong Continue to be
or indirectly
Commitment Provincial effective during
invest in or
made in State-owned Commitment to the period when
acquire any
acquisition Assets horizontal July 23, 2008 the Company in progress
Competitors; 2.
report or equity Investment competition controls
If any business
change report Holding Co., Zhonglu
opportunity
Ltd. OCEANIC
obtained by the
Company and
other
companies
controlled by
the Company
from any third
party
constitutes or
may constitute
substantial
competition
with the
business of
Zhonglu
OCEANIC, the
Company will
immediately
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
notify Zhonglu
OCEANIC, and
transfer such
business
opportunity to
Zhonglu
OCEANIC to
avoid
horizontal
competition or
potential
horizontal
competition
with Zhonglu
OCEANIC; 3.
The Company
and other
companies
controlled by
the Company
will not offer
any business
secrets such as
technical
information,
process and
sales channel to
other
companies,
enterprises,
organizations
and individuals
which compete
with the
business of
Zhonglu
OCEANIC; 4.
The Company
promises not to
use the
Company's
position as a
controlling
shareholder to
damage the
rights and
interests of
Zhonglu
OCEANIC and
other
shareholders of
Zhonglu
OCEANIC; 5.
The Company
is willing to
bear the direct
and indirect
economic
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
losses, claims
and additional
expenses
caused by the
violation of the
above
commitments.
party
transactions
between the
Company and
other
companies
controlled by
the Company
and Zhonglu
OCEANIC
strictly abide by
the relevant
provisions of
laws and
regulations, and
will be
conducted on
the basis of
equality and
voluntariness in
accordance
Shandong with the Continue to be
Commitment Provincial principles of effective during
made in State-owned Related fairness, the period when
acquisition Assets transaction equality and July 23, 2008 the enterprise in progress
report or equity Investment commitment equivalent controls
change report Holding Co., compensation. Zhonglu
Ltd. The transaction OCEANIC
price will be
determined
according to the
reasonable
price
recognized by
the market. 2.
The Company
and other
companies
controlled by
the Company
will strictly
abide by the
regulations on
the avoidance
of related party
transactions in
the articles of
association of
Zhonglu
OCEANIC, and
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the related
party
transactions
involved will
be carried out
in accordance
with the related
party
transactions
decision-
making
procedures of
Zhonglu
OCEANIC, and
will perform
legal
procedures and
information
disclosure
obligations. 3.
The Company
and other
companies
controlled by
the Company
guarantee to
strictly abide by
laws,
regulations and
normative
documents as
well as the
relevant
provisions of
the articles of
association of
Zhonglu
OCEANIC, and
to exercise
shareholder
rights and
perform
shareholder
obligations on
an equal
footing with
other
shareholders in
accordance
with legal
procedures, not
to take
advantage of
the position of
the controlling
shareholder to
seek improper
interests, and
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
not to damage
the legitimate
rights and
interests of
Zhonglu
OCEANIC and
other
shareholders. 4.
The above
commitments
will continue to
be effective
during the
period when the
Company
controls
Zhonglu
OCEANIC. If
the Company
fails to fulfill
the
commitments
made in this
letter of
commitment
and causes any
losses and
consequences
to Zhonglu
OCEANIC, the
Company will
bear the
corresponding
liability for
compensation.
Whether the
promise is
Yes
fulfilled on
time
If the
commitment is
overdue and not
fulfilled, the
specific reasons
for the failure None
to fulfill and
the next work
plan shall be
explained in
detail.
profit forecast period, the Company will explain whether the assets or projects have reached the original
profit forecast and why
□Applicable ? Not Applicable
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
□Applicable ? Not Applicable
II. Non-operating capital occupation of listed companies by controlling shareholders and
other related parties
□Applicable ? Not Applicable
During the reporting period of the Company, there was no non-operating capital occupation of listed companies by controlling
shareholders and other related parties.
III. Illegal external guarantees
□Applicable ? Not Applicable
During the reporting period, the Company had no external guarantees in violation of regulations.
IV. Explanation of the board of directors on the latest “non-standard audit report”
□Applicable ? Not Applicable
V. Explanation of the board of directors, board of supervisors and independent directors (if
any) on the “non-standard audit report” of the accounting firm for the reporting period
□Applicable ? Not Applicable
VI. Compared with the financial report of the previous year, an explanation on the changes
in accounting policies and accounting estimates or the correction of major accounting errors
□Applicable ? Not Applicable
During the Reporting Period, the Company had no changes in accounting policies and accounting estimates or the correction of
major accounting errors.
VII. Explanation on changes in the scope of consolidated statements compared with the
financial report of the previous year
□Applicable ? Not Applicable
During the reporting period of the Company, there was no change in the scope of consolidated statements.
VIII. Appointment and Dismissal of Accounting Firms
The current accounting firm
Shanghai Certified Public Accountants (special general
Domestic accounting firm name
partnership)
Domestic accounting firm remuneration (RMB 10,000) 35
Consecutive years of audit services provided by domestic
accounting firms
The name of the certified public accountant of the domestic Xu Mao, Wang Zhenbing
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
accounting firm
Consecutive years of audit services of CPAs of domestic
Xu Mao (4 years), Wang Zhenbing (2 year)
accounting firms
Whether to change the accounting firm in the current period
□Yes ? No
Employment of internal control audit accounting firms, financial consultants or sponsors
? Applicable □Not applicable
At the same time, the Company hired Shanghai Certified Public Accountants (special general partnership) as the Company's
internal control audit accounting firm in 2025, and paid a total of RMB 100,000 in remuneration.
IX. Facing delisting after annual report disclosure
□Applicable ? Not applicable
X. Matters related to bankruptcy and reorganization
□Applicable ? Not applicable
During the reporting period, there were no matters related to bankruptcy and reorganization of the Company.
XI. Major litigation and arbitration matters
□Applicable ? Not applicable
During the reporting period, the Company had no major lawsuits or arbitrations.
XII. Punishment and rectification
□Applicable ? Not applicable
There was no punishment and rectification in the reporting period of the Company.
XIII. Integrity status of the Company and its controlling shareholders and actual controllers
□Applicable ? Not applicable
XIV. Significant connected transactions
□Applicable ? Not applicable
During the reporting period of the Company, there was no connected transaction related to daily operation.
□Applicable ? Not applicable
During the reporting period, there was no connected transaction involving asset or equity acquisition or sale.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
□Applicable ? Applicable
During the reporting period, there was no connected transaction involving joint external investment.
? Applicable □Applicable
Whether there are any non-operational related-party receivables and payables
□Yes ?No
During the reporting period, the Company had no non-operating related-party receivables or payables.
□Applicable ? Not applicable
There is no deposit, loan, credit or other financial business between the Company and associated financial company or the related
party.
□Applicable ? Not applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the Company and related
parties.
□Applicable ? Not applicable
During the Reporting Period, the Company had no other significant connected transactions.
XV. Significant contracts and their performance
(1) Trusteeship
? Applicable □Not applicable
Explanation on trusteeship
April 2022, the Company has been entrusted by Shandong State-owned Assets Investment Holding to manage its subsidiary
Zhongtai Xincheng Asset Management Co., Ltd. (hereinafter referred to as "Zhongtai Xincheng"). Zhongtai Xincheng is not
included in the scope of the Company's consolidated statements.
Projects that bring profit or loss to the Company amounting to more than 10% of the Company's total profit in the reporting period
□Applicable ? Not applicable
During the reporting period of the Company, there was no trusteeship project which brings profit or loss for the Company
amounting to more than 10% of the total profit of the Company.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(2) Contracting status
□Applicable ? Not applicable
There was no contracting in the reporting period of the Company.
(3) Lease situation
□Applicable ? Not applicable
There was no lease in the reporting period of the Company.
? Applicable □Not applicable
Unit: RMB 10,000
External guarantees provided by the Company and its subsidiaries (excluding guarantees for subsidiaries)
Announc Whether
Name of Actual
ement Actual Counter- Whether related-
guarante Guarante guarante Guarante Collatera Guarante
date of occurren guarante complete party
e e quota e e type l (if any) e period
guarante ce date e (if any) d guarante
recipient amount
e quota e
Guarantees provided by the Company to its subsidiaries
Announc Whether
Name of Actual
ement Actual Counter- Whether related-
guarante Guarante guarante Guarante Collatera Guarante
date of occurren guarante complete party
e e quota e e type l (if any) e period
guarante ce date e (if any) d guarante
recipient amount
e quota e
Zhonglu
Oceanic
(Qingda
Joint and
o) January
Decemb several
Industry January 2, 2025 -
er 25, 24,000 9,738.42 liability No No
Investm 2, 2025 January
ent and 1, 2045
e
Develop
ment
Co., Ltd.
Total actual
Total approved
guarantee amount
guarantee quota for
provided to
subsidiaries during 0 9,738.42
subsidiaries during
the Reporting Period
the Reporting Period
(B1)
(B2)
Total balance of
Total approved
actual guarantee
guarantee quota for
provided to
subsidiaries at the 24,000 9,738.42
subsidiaries at the
end of the Reporting
end of the Reporting
Period (B3)
Period (B4)
Guarantees provided between subsidiaries
Name of Announc Guarante Actual Actual Guarante Collatera Counter- Guarante Whether Whether
guarante ement e quota occurren guarante e type l (if any) guarante e period complete related-
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
e date of ce date e e (if any) d party
recipient guarante amount guarante
e quota e
Total guarantees of the Company (sum of the first three categories)
Total actual
Total approved
guarantee amount
guarantee quota
during the Reporting
Reporting Period
Period (A1+B1+C1)
(A2+B2+C2)
Total approved Total balance of
guarantee quota at actual guarantee at
the end of the 24,000 the end of the 9,738.42
Reporting Period Reporting Period
(A3+B3+C3) (A4+B4+C4)
Proportion of total guarantee balances
(A4+B4+C4) in the Company’s net assets
Of which:
Balance of guarantees provided to
shareholders, actual controllers, and their 0
affiliates (D)
Balance of debt guarantee provided directly
or indirectly to recipients with a debt-to-asset 0
ratio exceeding 70% (E)
Amount of total guarantees exceeding 50%
of net assets (F)
Sum of the above three guarantees (D+E+F) 0
Disclosure of guarantee obligations triggered
or evidence indicating probable joint liability None
for undue guarantee contracts (if applicable)
External guarantees in violation of prescribed
None
procedures (if applicable)
Details regarding the use of a combined guarantee
(1) Entrusted financial management
□Applicable ? Not applicable
There was no entrusted wealth management in the reporting period of the Company.
(2) Entrusted loans
□Applicable ? Not applicable
There was no entrusted loan in the reporting period of the Company.
□Applicable ? Not applicable
There were no other major contracts in the reporting period of the Company.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
XVI. Use of Proceeds
□Applicable ? Not applicable
The Company had no use of proceeds during the reporting period.
XVII. Explanation of other important matters
□Applicable ? Not applicable
There were no other important matters that need to be explained in the reporting period of the Company.
XVIII. Significant events of the Company's subsidiaries
□Applicable ? Not applicable
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section VI Changes in Shares and Information on Shareholders
I. Changes in shares
Unit: share
Before this change Increase or decrease in this change (+, -) After this change
Issuance of Issuance of Issuance of
Quantity Proportion Quantity Proportion Quantity Proportion
new shares new shares new shares
I. Unlisted
tradable 48.13% 48.13%
shares
Promoter 48.13% 48.13%
shares
Of
which: 127,811,3 127,811,3
shares held 20 20
by the state
Shares
held by
domestic 260,000 0.10% 260,000 0.10%
legal
persons
Shares
held by
foreign
legal
persons
Other
Raising
legal person
shares
Internal
staff shares
Preferred
stock or
other
II. Listed
tradable 51.87% 51.87%
shares
ordinary
shares
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Foreign 00 00
shares listed
in China
Foreign
shares listed
overseas
III. Total
number of 100.00% 100.00%
shares
Reason for Share Change
□Applicable ? Not applicable
Approval status of shareholding changes
□Applicable ? Not applicable
Transfer status of share changes
□Applicable ? Not applicable
The impact of shareholding changes on financial indicators such as basic earnings per share, diluted earnings per share, and net
assets per share attributable to ordinary shareholders of the Company in the last year and the latest period
□Applicable ? Not applicable
Other content that the Company deems necessary or required by securities regulators to disclose
□Applicable ? Not applicable
□Applicable ? Not applicable
II. Securities Issuance and Listing
□Applicable ? Not applicable
shareholders, and changes in the structure of the Company's assets and liabilities
□Applicable ? Not applicable
□Applicable ? Not applicable
III. Shareholders and actual controllers
Unit: share
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The total Total number
number of of preferred
ordinary shareholders
Total number The total number of preference
shareholders with voting
of ordinary shareholders whose voting
at the end of rights
shareholders rights have been restored at the
at the end of end of the month preceding the
month before end of the
the reporting annual report disclosure date (if
the annual reporting
period any) (see note 8)
report period (if
disclosure any) (see note
date 8)
Shareholdings of shareholders holding more than 5% of the shares or the top 10 shareholders(excluding shares lent through refinancing)
Number of Pledge, Mark or Frozen
Changes Number of
shares held at Number of Situation
Shareholder Nature of Shareholding during the unlisted
the end of the tradable
name shareholders ratio reporting tradable
reporting shares held Share Status Quantity
period shares held
period
Shandong
State-owned
Assets State-owned 125,731,32 125,731,32 Not
Investment legal person 0 0 Applicable
Holding Co.,
Ltd.
Chen Foreign Not
Tianming natural person Applicable
Domestic Not
Zhu Shuzhen 2.11% 5,624,447 168,200 0 5,624,447 0
natural person Applicable
Domestic Not
Zhan Hanbin 2.10% 5,582,331 689,331 0 5,582,331 0
natural person Applicable
Domestic Not
Cai Yujiu 1.75% 4,669,000 700 0 4,669,000 0
natural person Applicable
Domestic Not
Chen Cirou 1.40% 3,715,100 455,000 0 3,715,100 0
natural person Applicable
China
National
State-owned Not
Heavy Duty 0.73% 1,950,000 0 1,950,000 0 0
legal person Applicable
Truck Group
Co., Ltd.
Domestic Not
Qu Chen 0.57% 1,516,000 1,516,000 0 1,516,000 0
natural person Applicable
Domestic Not
Lin Mingyu 0.51% 1,364,201 -35,800 0 1,364,201 0
natural person Applicable
Chen Domestic Not
Zhongming natural person Applicable
Strategic investors or general
legal persons becoming the top
allotment of new shares (if any)
(see Note 3)
Explanation on the related
The Company is unaware of whether there is any affiliation or whether they constitute a party acting
relationship or concerted action
in concert as defined in the Measures for the Administration of Acquisitions of Listed Companies.
of aforesaid shareholders
Explanation of the above-
mentioned shareholders None
involved in entrusted/entrusted
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
voting rights and waiver of
voting rights
Special instructions for
repurchase accounts among the
None
top 10 shareholders (if any)
(see Note 10)
Shareholdings of the top 10 tradable shareholders (excluding share lending via securities lending and locked-up shares of executives)
Type of shares
Shareholder name Number of tradable shares held at the end of the reporting period Type of
Quantity
shares
Domestic
Chen Tianming 5,760,427 listed foreign 5,760,427
shares
Domestic
Zhu Shuzhen 5,624,447 listed foreign 5,624,447
shares
Domestic
Zhan Hanbin 5,582,331 listed foreign 5,582,331
shares
Domestic
Cai Yujiu 4,669,000 listed foreign 4,669,000
shares
Domestic
Chen Cirou 3,715,100 listed foreign 3,715,100
shares
Domestic
Qu Chen 1,516,000 listed foreign 1,516,000
shares
Domestic
Lin Mingyu 1,364,201 listed foreign 1,364,201
shares
Domestic
Chen Zhongming 1,080,100 listed foreign 1,080,100
shares
Domestic
Huang Jiayi 1,033,987 listed foreign 1,033,987
shares
Domestic
Liu Xinghui 854,211 listed foreign 854,211
shares
Explanation on the associated
relationship or concerted action
among the top 10 shareholders
of tradable shares not subject to
The Company is unaware of whether there is any affiliation or whether they constitute a party acting
sales restrictions, and between
in concert as defined in the Measures for the Administration of Acquisitions of Listed Companies.
the top 10 shareholders of
tradable shares not subject to
sales restrictions and the top 10
shareholders
Explanation on the
participation of the top 10
ordinary shareholders in the None
margin trading and short selling
business (if any) (see Note 4)
Lending of shares through refinancing business participated by the shareholders holding more than 5% of the shares, top 10
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
shareholders, and top 10 shareholders with unlimited tradable shares
□Applicable ? Not applicable
Changes from the previous period due to refinancing, lending/repayment reasons of the top 10 shareholders and top 10
shareholders with unlimited tradable shares
□Applicable ? Not applicable
Whether the Company’s top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales
restrictions conducted agreed repurchase transactions during the reporting period
□Yes ? No
The Company's top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales restrictions
did not conduct agreed repurchase transactions during the reporting period.
Nature of the controlling shareholder: local state-owned holding
Type of controlling shareholder: legal person
Controlling Legal representative/
Date of establishment Organization Code Main business
shareholder name Principal
Operation management
and disposal of state-
owned property (share)
rights, asset
Shandong Provincial
management, equity
State-owned Assets
Luan Jian March 25, 1994 91370000163073167C investment
Investment Holding
management and
Co., Ltd.
operation, corporate
restructuring, mergers
and acquisitions,
investment consulting.
Equity of other
domestic and foreign
listed companies held
Not Applicable
by controlling
shareholders during the
reporting period
Changes in controlling shareholders during the reporting period
□Applicable ? Not Applicable
During the reporting period, the controlling shareholder of the Company remained unchanged.
The nature of the actual controller: local state-owned assets management agency
Type of actual controller: legal person
Legal representative/
Actual controller name Date of establishment Organization Code Main business
Principal
Shandong Provincial Fulfilling the investor's
People's Government duties, supervising the
State-owned Assets maintenance and
Liu Jianjun June 18, 2004 None
Supervision and appreciation of the
Administration state-owned assets
Commission under supervision, etc.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Equity of other
domestic and foreign
listed companies
Not applicable
controlled by the actual
controller during the
reporting period
Changes in the actual controller during the reporting period
□Applicable ? Not Applicable
The actual controller of the Company did not change during the reporting period.
Block diagram of the property rights and control relationship between the Company and the actual controller
Shandong Provincial People's Government State-owned Assets Supervision and Administration Commission
Shandong Provincial State-owned Assets Investment Holding Co., Ltd.
The Company
The actual controller controls the Company through trust or other asset management methods
□Applicable ? Not Applicable
shareholder and its persons acting in concert accounts for 80% of the Company's shares held by it
□Applicable ? Not Applicable
□Applicable ? Not Applicable
reorganization parties and other commitment subjects
□Applicable ? Not Applicable
IV. Specific implementation of share repurchase during the reporting period
Implementation progress of share repurchases
□Applicable ? Not Applicable
The progress of the implementation of the reduction of repurchased shares by means of centralized bidding transactions
□Applicable ? Not Applicable
V. Preferred Shares
□Applicable ? Not Applicable
During the reporting period, the Company had no preferred shares.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section VII Bonds
□Applicable ? Not Applicable
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section VIII Financial Report
Auditor's Report
SCPAR (2026) No. 6997
Date: April 22, 2026
To the Shareholders of Shandong Zhonglu Oceanic Fisheries Co., Ltd:
I. Opinion
We have audited the financial statements of Shandong Zhonglu Oceanic Fisheries Co., Ltd (hereafter
referred to as “the Company”), which comprise the consolidated and the Company's balance sheets as
at December 31, 2025, the consolidated and the Company's statements of income, the consolidated and
the Company's statements of cash flows and the consolidated and the Company's statements of
changes in equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements give a true and fair view of the financial position
of the Company as at December 31, 2025, and of its financial performance and cash flows for the year
then ended in accordance with Accounting Standards for Business Enterprises.
II. Basis for Opinion
We conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics for Chinese Certified Public Accountants and have fulfilled our
other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.The key audit matters identified in our audit are as follows:
A. Revenue recognition
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Regarding income accounting policies, please refer to Note Ⅳ.27; Please refer to Note Ⅵ.37 for the
amount of income generated.
In 2025, your company's operating revenue amounted to 1486.6927 million yuan. As revenue is a key
indicator of company profits, there is an inherent risk of misstatement in whether revenue is based on
real transactions and whether it is included in appropriate accounting periods. Therefore, we have
identified revenue recognition as a key audit item.
Our audit procedures for revenue recognition mainly include:
① Understand the internal control design related to revenue recognition in your company, evaluate the
effectiveness of the design and implement walkthrough testing, and check whether the relevant internal
control systems are effectively implemented;
② Verify the principles and methods of revenue recognition, combined with the essence of the
company's business and the "five step method", examine the contract signing methods and contents
under different business models, analyze the rights and obligations of the contract signing parties,
examine various performance obligations, identify the fulfillment of performance obligations over a
period of time, and determine whether the fulfillment of performance obligations at a certain point in
time complies with the provisions of the Enterprise Accounting Standards;
③ Check the authenticity of income and the basis for revenue recognition, such as sales contracts,
delivery orders, value statements or settlement documents, transportation bills, customs declaration
materials, bills of lading, credit policies, etc. Evaluate whether your company's revenue recognition
meets the requirements of the Enterprise Accounting Standards based on the collection of accounts
receivable after the period;
④ Conduct a cut-off test, select samples from income transactions recorded before and after the
balance sheet date, and check for any cross period income;
⑤ Implement a letter of confirmation procedure for major clients, extract sufficient samples to verify
the amount and balance of accounts receivable and contractual liabilities, and confirm the
reasonableness of revenue recognition.
B. The impairment of inventory
Regarding inventory accounting policies, please refer to Note Ⅳ.11; Please refer to Note Ⅵ.6 for the
book balance and provision for impairment of inventory.
As of December 31, 2025, the book balance of your company's inventory is 408.8094 million yuan,
with a provision for impairment of 26.9035 million yuan and a book value of 381.9059 million yuan,
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
accounting for 17.61% of the total assets at the end of the period. Given the significant amount of
inventory and the significant judgment of management involved in the provision for inventory
impairment, we have identified the provision for inventory impairment as a key audit item.
Our audit procedures for inventory impairment mainly include:
① Understand the design of internal controls related to inventory management and inventory
impairment in your company, evaluate the effectiveness of the design and implement walkthrough tests,
and check whether the relevant internal control systems are effectively implemented;
② Implementing inventory monitoring, checking the quantity, condition, and product shelf life of
inventory;
③ Obtain the inventory age list of ending inventory, conduct analytical review on inventory with
longer inventory age, and analyze whether the provision for inventory impairment is reasonable;
④ Analyze the changes in the provision for inventory impairment made in previous years during the
current period, and assess the adequacy of the provision for inventory impairment; Obtain the latest
product sales prices before and after the balance sheet date, sample the inventory sold after the balance
sheet date, and compare the actual selling price of the sample with the expected selling price;
⑤ Obtain the calculation table and relevant basis for impairment provision provision from the
management, evaluate the rationality of the key data provisioned, and recalculate to evaluate the
accuracy of the management's impairment calculation process;
⑥ Review whether the provision for inventory depreciation has been fully and appropriately disclosed
in accordance with the standard requirements.
C. Government Grants
Regarding other income accounting policies, please refer to Note Ⅳ.29; regarding the amount of other
income, please refer to Note Ⅵ.43; regarding government grants, please refer to Note Ⅹ.
As of December 31, 2025, the current-period amount of other income of your Company was 59.3710
million yuan, of which 55.7587 million yuan relating to the subsidy for improvement of international
performance capability had not been received. The recognition of such amount in other income has a
material impact on the company’s profit. As of December 31, 2025, the total receivable subsidy for
improvement of international performance capability of the Company and its consolidated subsidiaries
amounted to 107.2879 million yuan. We have identified government grants as a key audit matter.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Our audit procedures for government grants mainly include:
① Obtain the official documents in respect of government grants and inspect relevant bank transaction
records.
② Conduct formal inquiries with the responsible director of Laoshan District Bureau of Agriculture
and Rural Affairs so as to verify the authenticity and accuracy of the government granting documents.
③ Calculate and accrue allowance for doubtful debts on receivables from government grants in strict
accordance with the Company’s accounting policies for bad debt provision.
④ Interview the relevant handling personnel to enquire into and document the detailed application
process of the government grants, the underlying causes for failure to receive the funds, and whether a
definite schedule for fund disbursement has been arranged.
IV. Other Information
The directors of the Company are responsible for the other information. The other information
comprises all of the information included in the annual report other than the financial statements and
our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Directors and Those Charged with Governance for the Financial
Statements
The directors of the Company are responsible for the preparation of financial statements that give a
true and fair view in accordance with Accounting Standards for Business Enterprises, and for such
internal control as the directors determine is necessary to enable the preparation of the financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Company or to
cease operations or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
process.
VI. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with auditing standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
A. Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances.
C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
D. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going
concern.
E. Evaluate the overall presentation, structure and content of the financial statements, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
C.P.A
Mao Xu
Zhenbing Wang
Shanghai Certified Public Accountants (Special General Partnership)
Shanghai, China
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Ⅰ.Profile of the Company
The registered address of Shandong Zhonglu Oceanic Fishery Co., Ltd. (hereinafter referred to as “the Company”)
has a registered capital of RMB 266,071,300, and its registered address is 2501, Building 1, 31 Xianxialing Road,
Laoshan District, Qingdao, Shandong. It is a company limited by shares established on July 30, 1999, by means of
promotion with Shandong Aquaculture Enterprise Group as the key promoter, with the approval of the Shandong
Economic Restructuring Commission through Document LTGZ [1999] No. 85. With the approval of the China
Securities Regulatory Commission through Document ZJFXZ [2000] No. 82 on June 26, 2000, the Company’s B-
shares were listed on the Shenzhen Stock Exchange on July 24, 2000. The short stock name is “Zhonglu B,” and the
stock code is “200992” .
The Company’s basic organizational structure consists of: Annual General Meeting, Board of Directors, Board of
Supervisors, General Manager’s Office (Party Committee’s Office), Board Office, Human Resources Department
(Organizational Department), Financial Management Department (Capital Operations Department), Corporate
Development Department, Audit Department, Oceanic Management Departments, Discipline Inspection
Committee’s Office, Party’s Mass Work Department, and Risk Control Department (Legal Affairs Department).
The Company’s key products include tuna and its products.
The Company’s business scope is: general business items: processing and sale of aquatic products; commodity import
and export within the approved scope; manufacture and sale of machine-made ice; manufacture, installation, and
repair of refrigeration equipment; refrigeration and cold storage; loading, unloading, and handling services; property
leasing.
Business items with prerequisite licensing: open-water fishing and long-range fishing.
As of December 31, 2025, the parent company and ultimate controller is Shandong State-owned Assets Investment
Holding Co., Ltd.
This financial statement is approved by the resolution of the Board of Directors of the Company on April 22,2026. In
accordance with the Articles of Incorporation of the Company, the financial statements will be submitted to the
general meeting for consideration
Ⅱ. T Basis for the preparation of the financial statements.
The company takes continuing operation as the basis for preparing financial statements and takes the accrual basis as
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the basis for bookkeeping. The company generally adopts the historical cost to measure the accounting elements, and
adopts the replacement cost, the realizable net value, the present value and the fair value on the premise that the
determined amount of the accounting elements can be obtained and be measured reliably.
The company shall have the ability of going concern for at least 12 months from the end of this report, and have no
major matters affecting the ability of going concern.
Ⅲ. Statement following the Accounting Standards for Business Enterprises
The Company’s financial statements and notes were issued by the accounting standards, application guidelines,
accounting standards for business enterprises, the China Securities Regulatory Commission issued the public issuance
of securities company information disclosure reporting rules no. 15-the general provisions of financial report [2023
revision] and the requirements of the relevant provisions, truly and completely reflects the company's current financial
situation, operating results, changes in shareholders' equity and cash flow and other relevant information.
Ⅳ. Important accounting policies and accounting estimates
According to the actual characteristics of production and operation and the provisions of relevant accounting
standards for enterprises, the company has formulated several specific accounting policies and accounting estimates
for transactions and matters such as revenue recognition, see Note IV and 27 "revenue" for details. For the statement
of significant accounting judgments and estimates made by management team, please refer to Note IV, 34 "Major
Accounting judgments and Estimates".
The fiscal year starts from January 1 to December 31 of the Gregorian calendar.
The normal business cycle is the period from the company's purchase of assets for processing to the realization of
cash or cash equivalents. The company takes 12 months as a business cycle and takes it as the liquidity standard of
assets and liabilities.
RMB Yuan
The preparation and disclosure of the financial statements follow the principle of importance. The matters disclosed
in the notes to the financial statements involve the importance criteria and the importance criteria of the Company are
as follows:
Item Position disclosed in the notes to Importance criteria determination method and
this Financial Statements selection basis
Other profits Note VI, 43 1 million yuan
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Position disclosed in the notes to Importance criteria determination method and
this Financial Statements selection basis
Important non-wholly owned subsidiary Notes IX, 1, and (2) Asset size greater than 100 million Yuan
Important associate companies Notes IX, and 2 The net profit scale is greater than 5 million yuan
Important projects under construction Note VI, 11 10 million yuan
Enterprise merger refers to the transaction or event in which two or more separate enterprises are merged to form a
reporting entity. Business merger is divided into enterprise merger under the same control and enterprise merger not
under the same control.
(1) Enterprise merger under the same control
The enterprises participating in the merger are subject to the final control of the same party or the same multiple
parties before and after the merger, and the control is not temporary and is the enterprise merger under the same
control. For an enterprise merger under the same control, the party acquiring control over the other enterprises
participating in the merger on the merger date shall be the merger party, and the other enterprises participating in the
merger shall be the merged party. The merger date refers to the date on which the merged party actually obtains the
control right of the incorporated party.
The assets and liabilities acquired by the consolidated party are measured at the book value of the consolidated party
at the merger date. The balance between the book value of the net assets acquired by the consolidated party (or the
total book value of the issued shares) shall adjust the capital reserve (equity premium); if the capital reserve (equity
premium) is insufficient to offset, the retained earnings shall be adjusted.
The merger party is the direct expenses incurred in the enterprise merger, which shall be recorded into the current
profit and loss at the time of occurrence.
(2) Enterprise merger not under the same control
If the enterprise participating in the merger is not under the final control of the same party or the same multiple
parties before and after the merger, it is the enterprise merger not under the same control. For an enterprise merger
not under the same control, the party who obtains the control right over the other enterprises participating in the
merger on the purchase date shall be the acquirer, and the other enterprises participating in the merger shall be the
acquiree. The date of purchase is the date on which the acquirer actually obtains control over the acquiree.
For merger of enterprises not under the same control, the cost of consolidation includes the assets paid by the
acquirer on the purchase date to acquire control over the acquiree, liabilities incurred or assumed by the acquirer and
equity securities issued to acquire control of the acquiree at the purchase date. The cost of audit for the merger of the
enterprise, legal services, evaluation and consulting intermediary fees and other management fees shall be recorded in
the current profit and losses. The transaction expense of equity or debt securities issued by the acquirer as the
combined consideration shall be included in the initial recognized amount of equity or debt securities. The contingent
consideration involved shall be included in the consolidated cost according to its fair value on the purchase date. If
there is new or further evidence of the existed situations of the purchase date within 12 months after it, the
consolidated goodwill shall be adjusted accordingly. The merger costs incurred by the acquirer and the identifiable net
assets acquired in the merger should be measured at the fair value of the purchase date. The difference between the
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
merger cost and the share of the fair value of the identifiable net assets of the purchased party on the purchase date
shall be recognized as goodwill. If the consolidated cost is less than the fair value of identifiable net assets of the
merger, first of the fair value of the identifiable assets, liabilities and contingent liabilities and combined cost
measurement, review the combined cost is still less than the identifiable net assets of the merger, the difference
included in the current profit and loss.
If the acquirer obtains the deductible temporary difference of the acquiree, and is not recognized on the purchase date
because it does not meet the conditions of deferred income tax assets for recognition, if new or further information
confirming the existence of relevant situations is obtained with in 12 months after the purchase date, the acquirer shall
confirm the deferred income tax assets and reduce the goodwill, if the goodwill is insufficient, the difference shall be
recognized as the current profit and loss; Except for the above situation, the deferred income tax assets related to the
enterprise merger shall be included in the current profit and loss.
For business merger not under the same control achieved through multiple transactions step by step, it should be
determined whether the multiple transactions belongs to "package deal" according to the Ministry of Finance on the
notice of the accounting standards interpretation no. 5 (accounting [2012] no. 19) and "accounting standards no. 33 —
— consolidated financial statements" article 51 criteria about "package deal" (see Note Ⅳ.6, judging criteria of the
control and preparation of the consolidated financial statements), For "package transaction", refer to the previous
paragraphs in this section for accounting treatment; For those not belong to "package transaction", distinguish
individual financial statements from consolidated financial statements in the accounting statement:
In individual financial statements, the sum of the book value of the equity interest of the acquiree held prior to the
purchase date and the cost of new investment on the purchase date is taken as the initial investment cost of the
investment. Where the equity interest of the acquiree held prior to the purchase date involves other comprehensive
income, the other comprehensive income associated with the investment will be accounted for on the same basis as if
the acquiree had disposed of the relevant asset or liability directly (i.e., With the exception of the corresponding share
of the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan by the
acquiree under the equity method, the remainder is transferred to investment income for the period).
In the consolidated financial statements, for the equity of the acquiree held prior to the purchase date, remeasure at
the fair value of the equity at the purchase date, the difference between the fair value and its book value shall be
included in the current investment income; Where the equity of the acquiree held before the purchase date involves
other comprehensive income, the other comprehensive income shall be treated on the same basis as the direct
disposal of the relevant assets or liabilities (i. e., Except for the corresponding share accounted for under the equity
method in the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan by
the acquirer, the remainder is converted to investment income for the period at the purchase date).
(1) Judging standard of the control
The consolidation scope of consolidated financial statements is determined on the basis of control. Control means
that the Company has the power over the investee, enjoys a variable return by participating in the relevant activities of
the investee, and has the ability to use the power of the investee to influence the amount of the return. Among them,
the Company has the current right to enable the Company to dominate the relevant activities of the investee
regardless of whether the Company actually exercises the power; if the return from the investee may change with the
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
performance of the investee, it shall be deemed to enjoy a variable return; if the Company exercises the decision-
making power as the principal responsible person, the Company shall be deemed to use the power of the investee to
affect the return amount. The scope of the merger includes the Company and all of its subsidiaries. Subsidiary, refers
to the subject controlled by the Company.
The Company judges whether to control the investee on the basis of comprehensive consideration of all relevant facts
and circumstances. The relevant facts and conditions mainly include: the purpose of the establishment of the investee;
the relevant activities of the investee and how to make decisions on the relevant activities; whether the rights of the
Company enable the Company to dominate the relevant activities of the investee; whether the Company enjoys a
variable return by participating in the relevant activities of the investee; whether the Company has the ability to
influence the power of the investee; the relationship between the Company and the other parties, etc. Once changes in
the relevant facts and circumstances lead to changes in the relevant elements involved in the above control definition,
the Company will reevaluate them.
(2) Method of preparing the consolidated financial statements
From the date of acquiring the net assets of the subsidiary and the actual control right of production and operation
decisions, the Company will begin to bring it into the merger scope, and stop to do to so after the date of losing the
actual control right. For the subsidiaries under disposal, the operating results and cash flow before the disposal date
have been appropriately included in the consolidated income statement and the consolidated cash flow statement; for
the current disposition subsidiaries, the beginning of the consolidated balance sheet will not be adjusted. For
subsidiaries not under the same control, the operating results and cash flow after the purchase date have been
appropriately included in the consolidated income statement and the consolidated cash flow statement, and the initial
and comparative numbers of the consolidated financial statements will not be adjusted. For the subsidiaries increased
by the enterprise merger under the same control and the merged party under the absorption merger, the operating
results and cash flow from the beginning of the current period to the merger date have been appropriately included in
the consolidated income statement and the consolidated cash flow statement, and the comparison number of the
consolidated financial statements shall be adjusted at the same time.
At the time of preparing the consolidated financial statements, if the accounting policies or accounting periods
adopted by the subsidiary is inconsistent with that adopted by the Company, necessary adjustments to the financial
statements of the subsidiary shall be made in accordance with the accounting policies and accounting periods of the
Company. For subsidiaries not acquired under the same control, their financial statements shall be adjusted on the
basis of the fair value of identifiable net assets on the purchase date.
All significant transaction balances, transactions and outstanding profits within the Company should be offset by the
preparation of the consolidated financial statements.
The shareholders' equity and the net profit and loss of the current period that are not owned by the Company should
be listed separately as the minority shareholders' equity and the minority shareholders' profit and loss under the
shareholders' equity and net profit in the consolidated financial statements. The share of the current net profit and
loss of the subsidiary belonging to the minority shareholders' equity shall be listed in the item of "minority
shareholders' profit and loss" under the net profit items in the consolidated profit statement. The loss of the
subsidiary shared by the minority shareholders exceeds the share of the minority shareholders 'equity of the subsidiary
at the beginning of the period, and the number of the shareholders' equity is still reduced.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
When the control of the original subsidiary is lost due to the disposal of some equity investment or other reasons, the
remaining equity shall be remeasured according to its fair value on the date of the loss of control. The sum of the
consideration obtained from the disposal of the shares and the fair value of the remaining shares, after deducting the
share of the net assets of the original subsidiary calculated from the purchase date, shall be included in the investment
income of the period of the loss of control. For other comprehensive income related to the equity investment of the
original subsidiary, the accounting treatment of control shall be lost on the same basis as the direct disposal of the
relevant assets or liabilities of the subsidiary. Subsequently, the remaining equity shall be measured in accordance with
the Accounting Standards for Business Enterprises No.2 —— Long-term Equity Investment or Accounting
Standards for Business Enterprises No.22 —— Recognition and Measurement of Financial Instruments and other
relevant provisions, see Note Ⅳ and 14 "Long-term Equity Investment" or Note Ⅳ and 10 "Financial Instruments".
If the Company disposed of the equity investment in the subsidiary until the loss of control through multiple
transactions, it is necessary to distinguish whether the transaction of the equity investment until the loss of control is a
package transaction. If the terms, conditions and economic impact of the disposal of subsidiary equity investments
meet one or more of the following circumstances, usually indicating that those multiple transactions should be treated
as package transactions:
For each transaction that does not belong to the package transaction, according to the circumstances, the principle of
"partial disposal of long-term equity investment of subsidiaries without losing control" (see Note Ⅳ,14 "long-term
equity investment" (2) ④) and "loss of control of the disposal of the original subsidiary" (see the preceding paragraph)
should be applied in the accounting treatment. If the transaction of the subsidiary equity investment until the loss of
control is a package transaction, the transaction shall be treated as a transaction of the disposal of the subsidiary and
losing the control; however, the difference between the disposal price and the share of the net assets of the subsidiary
before the loss of control should be recognized as other comprehensive income in the consolidated financial
statements, and the profit and loss of the period of the loss of control.
Joint venture arrangement means an arrangement under the joint control of two or more parties. The Company shall,
according to the rights and obligations enjoyed in the joint venture arrangement, divide the joint venture arrangement
into joint operation and joint company. Joint operation means the joint venture arrangement in which the Company
enjoys the relevant assets of the arrangement and assumes the liabilities related to the arrangement. Joint company
means a joint venture arrangement in which the Company only enjoys rights to the net assets of the arrangement.
The company's investment in joint venture shall be calculated by equity method, which shall be treated in accordance
with the accounting policies described in Note Ⅳ,14 "Long-term Equity Investment" (2) ② "Long-term equity
investment calculated by equity method".
The Company, as the joint venture, recognizes the assets held by the Company, the liabilities and the liabilities held by
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the shares of the Company, and the liabilities held by the Company. Recognize the income generated by the sale of the
share of the output incurred by the Company, and the expenses incurred by the Company in accordance with the
share of the Company.
When the Company invests or sells assets as the joint venture (the assets do not constitute business, the same should
be applied below) or purchases assets from the joint venture, prior to the sale of such assets to a third party, the
Company recognizes only the portion of the profit or loss arising from the transaction attributable to other
participants in the joint venture. For the asset impairment loss in accordance with the Accounting Standards for
Business Enterprises No.8 —— Asset Impairment, the Company shall recognize the loss for the assets that the
Company purchased the assets, the Company shall recognize the loss according to the share borne by itself.
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to
investments held by the company with a short term (generally due within three months from the purchase date),
which are highly liquid, easy to be converted into a known amount of cash and with little risk of change in value.
(1) The method for determining the exchange rate when foreign currency transactions occur
When a foreign currency transaction is initially recognized, the approximate spot exchange rate on the day of the
transaction is used to convert the amount into RMB.
(2) On the balance sheet date, foreign currency currency items and foreign currency non-currency items shall be
treated in the following methods:
① Foreign currency currency items shall be converted through the central parity rate of RMB foreign exchange price
published by the People's Bank of China on the balance sheet date. The exchange difference caused from the
difference between the spot exchange rate on the balance sheet date and the initial recognition date or the previous
balance sheet date shall be included in the current profit and loss.
② Foreign currency non-monetary items measured at historical cost shall still be converted at the spot exchange rate
on the date of the transaction without changing the bookkeeping standard amount; foreign currency non-monetary
items measured at fair value shall be converted at the spot exchange rate on the date of fair value; the difference
between the original bookkeeping standard amount shall be treated as the change of fair value (including change in
exchange rate) and be included into the current profit and loss or other comprehensive income according to the
nature of the non-monetary items.
Monetary items refer to the monetary funds held by the Company and the assets or liabilities to be collected in a fixed
or definite amount.
Non-monetary items refer to items other than monetary items.
(3) Conversion method of foreign currency financial statements of overseas operating entities:
① The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date,
and the owner's equity items except the "undistributed profit" shall be converted at the spot exchange rate at the time
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
of occurrence;
② The income and expense items in the income statement shall be converted at the exchange rate similar ③ The
conversion difference in the foreign currency financial statements generated from the above ① and ② conversion
shall be listed separately under the owner's equity items in the balance sheet.to the spot exchange rate on the date of
the transaction;
④ The financial statements of overseas operations in hyperinflation economy shall be converted in the following
methods:
Restate the balance sheet items by using the general price index, and restate the income statement items by using the
general price index changes, then convert at the spot rate at the latest balance sheet date.
When the overseas operation is no longer in the hyperinflation economy, the restatement shall be stopped and the
financial statements reconverted according to the price level on the date of cessation.
⑤ In the disposal of overseas operations, the Company shall convert the difference between the foreign currency
financial statements related to the owner equity items of the balance sheet for the current disposal of overseas
operations, the conversion difference of the foreign currency financial statements of the disposal portion shall be
calculated at the proportion of the disposal and transferred to the profit and loss of the current disposal.
The financial instrument means a contract that forms the financial assets of one party and forms the financial liabilities
or equity instruments of the other party. When the Company becomes a party to the financial instrument contract, it
recognize the relevant financial assets or financial liabilities.
(1) Financial Assets
According to the business model of managing financial assets and the contractual cash flow characteristics of financial
assets, the Company divides the financial assets into:
The Company manages the business model of financial assets measured at amortized cost, and the contract cash flow
characteristic of such financial assets is consistent with the basic lending arrangement, that is, the cash flow generated
on a specific date is only the payment of the principal and the interest based on the outstanding principal amount. For
such financial assets, the Company adopts the real interest rate method to conduct the follow-up measurement for the
amortized cost, and the profit or loss generated by the amortization or impairment shall be recorded in the current
profit and loss.
The business model of the Company for managing such financial assets is to target both collecting and selling of the
contractual cash flow, and the contractual cash flow characteristics of such financial assets are consistent with the
basic lending arrangement. The Company measures such financial assets at fair value and their changes are included in
other comprehensive income, but the impairment losses or gains, exchange gains and losses and interest income
calculated in accordance with the real interest rate method are included in the current profits and losses.among:
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
<1> Debt instrument investment measured at fair value and whose changes are included in other c Subsequent
measurement should be performed at fair value. Interest rates, impairment losses or gains and exchange gains and
losses calculated by the real interest rate method shall be included in the current profits and losses, while other gains
or losses shall be included in other comprehensive gains. Upon the termination of recognition, the accumulated gains
or losses previously included in other comprehensive income shall be transferred from other comprehensive income
and recorded in the current profit and loss.
<2> Equity instrument investment measured at fair value and whose changes are included in other comprehensive
income
Subsequent measurement should be performed at fair value. The dividends obtained (except for the part of the
investment cost recovery) shall be included in the current profit and loss, and other gains or losses shall be included in
other comprehensive income. Upon the termination of recognition, the accumulated gains or losses previously
included in other comprehensive income shall be transferred from other comprehensive income and included in the
retained earnings.
For non-trading equity instrument investments, the Company may, upon initial recognition, irrevocably designate
them as a financial asset measured at fair value and its changes included in other comprehensive income. The
designation is made on the basis of a single investment, and the relevant investment meets the definition of the equity
instrument from the perspective of the issuer.
The Company classifies the above financial assets measured at amortized cost and the financial assets measured at fair
value and whose changes are included in other comprehensive income as the financial assets measured at fair value
and whose changes are included in the current profit and loss. In addition, at the initial recognition, in order to
eliminate or significantly reduce the accounting mismatch, the Company designated some financial assets as financial
assets measured at fair value and their changes are included in the current profit and loss. For such financial assets, the
Company adopts the fair value for subsequent measurement, and the change in the fair value is included in the current
profit and loss.
The investment in equity instruments over which the Company has no control, joint control and significant influence
will be measured at fair value and its changes will be included in current profit or loss, and listed as trading financial
assets; Those expected to hold for more than one year from the balance sheet date are listed as other non-current
financial assets.
Financial assets are measured at fair value at the initial recognition. For financial assets measured at fair value and
whose changes are included in the current profit and loss, relevant transaction expenses are directly included in the
current profit and loss; for other categories of financial assets, relevant transaction expenses are included in the initial
recognition amount. For accounts receivable or notes receivable arising from the sale of products or the provision of
services that do not include or do not take into account the significant financing components, the amount of
consideration that the Company is expected to be entitled to collect shall be the initial recognition amount.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
An equity instrument is a contract that demonstrates ownership of the remaining interest in the assets excluding all
liabilities. The company's issuance (including refinancing), repurchase, sale or cancellation of equity instruments shall
be treated as changes in equity, and the transaction expenses related to equity transactions shall be deducted from the
equity. The Company does not recognize the change in the fair value of the equity instruments.
During the duration of the Company (including the "interest" generated by the "instruments" classified as "equity
instruments"), it shall be treated as profit distribution.
On the basis of expected credit loss, the Company makes impairment provision and confirms the applicable expected
credit loss measurement method (general method or simplified method).
Credit loss refers to the difference between all the contractual cash flows receivable under the contract and all the
expected cash flows collected, i. e., the present value of the total cash shortage. Among them, for the financial assets
purchased or derived with credit impairment, the Company shall discount the actual interest rate of the financial assets.
The general method of measuring expected credit loss refers to measuring whether the credit risk of the financial
assets (including contract assets and other applicable items, the same below) assessed by the Company on the balance
sheet date has increased significantly since the initial confirmation, the Company measures the loss preparation
according to the amount equivalent to the expected credit loss in the whole duration; if the credit risk does not
increase significantly after the initial confirmation, the Company measures the loss preparation according to the
amount equivalent to the expected credit loss in the next 12 months. For the financial assets purchased or derived
with credit impairment, the Company shall only recognize the cumulative changes of the expected credit loss during
the initial period on the balance sheet date. The Company considers all reasonable and grounded information,
including forward-looking information, when assessing expected credit losses.
For receivables and contractual assets that are formed from transactions regulated by Accounting Standard for
Business Enterprises No. 14 - Revenue and do not have a significant financing component or that the Company does
not take into account the financing component of contracts not exceeding one year, the Company uses a simplified
measurement method to measure the loss provision in terms of the amount of expected credit losses over the entire
duration.
For financial assets other than the above measurement methods, the Company assess whether its credit risk has
significantly increased since the initial recognition. If the credit risk has significantly increased since the initial
confirmation, the Company measures the loss provision according to the amount of the expected credit loss in the
entire duration; if the credit risk does not increase significantly after the initial confirmation, the Company measures
the loss provision according to the amount of the expected credit loss in the next 12 months.
The Company uses available reasonable and warranted information, including forward-looking information, to
compare the risk of default of the financial instrument on the balance sheet date with the risk of default on the initial
recognition date to determine whether the credit risk of the financial instrument has increased significantly since the
initial confirmation.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
On the balance sheet date, if the Company determines that the financial instrument only has a low credit risk, it is
assumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.
The Company evaluates expected credit risk and measures expected credit losses on the basis of a single financial
instrument or portfolio of financial instruments. When based on a combination of financial instruments, the Company
divides financial instruments into different combinations based on common risk characteristics.
The Company re-measures the expected credit loss on each balance sheet date, and the increase or reversal of the loss
provision will be recorded as impairment loss or gains. For the financial assets measured at amortized cost, the loss
provision shall offset the book value of the financial assets listed in the balance sheet; for the debt investment
measured at fair value and its changes included in other comprehensive income, the Company confirms the loss
provision in other comprehensive income, which does not offset the book value of the financial assets.
If the default probability of a financial asset within the expected duration determined on the balance sheet date is
significantly higher than the default probability determined during the expected duration determined at the initial
confirmation, it indicates that the credit risk of the financial asset is significantly increased. Except in special
circumstances, the Company should use the change of the default risk in the next 12 months as a reasonable estimate
of the change of the default risk during the entire duration to determine whether the credit risk increases significantly
after the initial confirmation.
The Company evaluates credit risks for individual financial assets with significantly different credit risks, such as
receivables of relevant parties, receivables for matters in dispute with the other side or matters involved in litigation or
arbitration, and receivables where the debtor is likely to fail to fulfill repayment obligations.
In addition to individual financial assets that assess credit risk, the Company divides financial assets into different
groups based on common risk characteristics and evaluates credit risk on the basis of a portfolio.
At the end of the period, the Company calculates the estimated credit loss of various financial assets, if the estimated
credit loss is greater than the book amount of the current impairment provision, the difference should be recognized
as an impairment loss; if it is less than the current impairment provision, the difference should be recognized as an
impairment gain.
The company needs to confirm the impairment loss of financial assets measured by amortized cost of financial assets,
debt instruments measured at fair value and whose changes are included in other comprehensive incomes, as well as
lease receivables, mainly including notes receivable, accounts receivable, receivables financing, other receivables,
creditor's rights investment, other creditor's rights investment, long-term receivables, etc. In addition, for the contract
assets and part of the financial guarantee contracts, impairment provisions and credit impairment losses are confirmed
in accordance with the accounting policies described in this part.
<1> The account for receivables and contract assets for expected credit losses based on a combination of credit risk
characteristics
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Basis for confirming the
Consolidation category Method of measuring expected credit losses
consolidation
Bank acceptance bill receivable With reference to the historical credit loss experience,
combined with the current situation and the forecast of the
Bill type future economic situation, the expected credit loss should be
Trade acceptance receivable calculated through the default risk exposure and the expected
credit loss rate of the whole duration
With reference to the historical experience of credit loss, and
Receivable-Account receivable age combined with the current situation and the forecast of the
portfolio future economic situation, the comparison table between the
Account receivable age
Contract asset - Account receivable age age of accounts receivable and the expected credit loss rate of
Portfolio the whole duration is prepared to calculate the expected credit
loss
Accounts receivable —— consolidated Based on historical credit loss experience, current conditions
Scope of merger
related parties portfolio and expected future economic conditions
With reference to the historical credit loss experience,
combined with the current situation and the forecast of the
Other receivables - Account receivable future economic situation, prepare the comparison table of
Account receivable age
age portfolio other receivables age and the expected credit loss rate, and
calculate the expected credit loss rate in the next 12 months or
the whole duration
The allowance for bad debts is measured with reference to
Other receivables - consolidated
Scope of merger historical credit loss experience, combined with current
related parties portfolio
conditions and expectations of future economic conditions
<2> Aging combination of aging and expected credit loss ratio comparison table
Account receivable age Expected credit loss rate of accounts Expected credit loss rate of other
receivable receivables
Within 6 months 5.00% 5.00%
Six months to a year 10.00% 10.00%
More than 3 years 100.00% 100.00%
The age of accounts for the self-examination of accounts receivable and other receivables contracts starts from the
month when the payment actually occurs.
For the receivables and contract assets formed by the transactions regulated by the Accounting Standards for Business
Enterprises No.14 —— Income, the Company uses the simplified measurement method to measure the loss
preparation according to the amount equivalent to the expected credit loss within the entire duration.
For leasing receivables, by the accounting standards for enterprises no. 14 —— income specification of transaction
formation, and without significant financing components or the company does not consider not more than a year of
financing receivables and contract assets of the contract, the company using the simplified measurement method,
according to the entire duration of expected credit loss amount measurement loss.
For notes receivable and debt receivables measured at fair value and whose changes are included in other
comprehensive income, if the maturity period is within one year (including one year from the initial confirmation date),
they shall be reported as receivables financing. The Company measures the impairment loss by using the amount of
the expected credit loss of the entire duration.
Debt investment is mainly accounted for by bond investment measured at amortized cost. The Company measures
the impairment loss in the amount equivalent to the expected credit loss within the next 12 months, or for the entire
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
duration, based on whether its credit risk has increased significantly since the initial recognition.
Other creditor's rights investments shall be mainly accounted for bond investment measured at fair value and whose
changes are included in other comprehensive income. Financing of receivables with a maturity period of more than
one year from the initial confirmation date shall also be reported as other creditor's rights investments. For other debt
investments (including receivables listed in other debt investments), the Company shall measure the impairment loss
by using the amount equivalent to the expected credit loss within the next 12 months or the entire duration based on
whether its credit risk has increased significantly after the initial confirmation. For receivables financing that does not
include major financing components, the Company measures the loss preparation according to the expected amount
of credit loss equivalent to the entire duration.
<3> The criteria for the identification of receivables and contract assets for the provision of expected credit losses on
a single basis
For receivables and contract assets whose credit risk is significantly different from combined credit risk, the Company
shall draw expected credit losses according a single item.
If the financial assets meet one of the following conditions, the recognition of them shall be terminated:
ownership of the financial assets to the transferred party;
risks and rewards in the ownership of the financial asset, it has abandoned the control of the financial asset.
Upon the confirmation termination of the investment of other equity instruments, the difference between the book
value and the consideration received and the sum of the fair value directly recorded in other comprehensive income
shall be included in the retained earnings, and the book value of the remaining financial assets and the sum of the fair
value directly recorded in other comprehensive income shall be included in the current profit and loss.
If the Company has neither transferred nor retained almost all the risks and rewards in the ownership of the financial
assets, and has not abandoned the control over the financial assets, the relevant financial assets shall be recognized
according to the extent of the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
The degree to which the continued involvement of the transferred financial assets is involved refers to the risk level
faced by the enterprise caused by the change in the value of the financial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the difference between
the book value of the transferred financial assets and the sum between the sum of the consideration received from the
transfer and the fair value change originally included in other comprehensive income shall be included in the current
profit and loss.
If the partial transfer of the financial assets meets the conditions of termination of recognition, the book value of the
transferred financial assets shall be apportioned according to the relative fair value between the fair value of the
transfer and the sum of the sum of the transfer of the transfer shall be included into the current profit and loss.
For the financial assets sold by recourse, or the endorsement transfer of the held financial assets, the Company needs
to determine whether almost all the risks and rewards in the ownership of the financial assets have been transferred. If
almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferred party,
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the recognition of the financial asset should be terminated; if the financial asset retains the ownership of the financial
asset and almost all the risks and rewards in the ownership of the financial asset, the recognition of the financial asset
should not be terminated, if there is no transfer nor retention of almost all the risks and remuneration in the
ownership of the financial asset, the company shall continue to judge whether the enterprise has retained the control
of the asset and conduct treatment according to the principles described in the preceding paragraphs.
If the Company no longer reasonably expects that the contractual cash flow of the financial asset can be recovered in
whole or in part, the book balance of the financial asset will be written down directly. This write-down constitutes the
termination of recognition of the relevant financial assets. This usually occurs when the Company determines that the
debtor has no assets or sources of income to generate sufficient cash flow to repay the amount that will be written
down. However, the financial assets under the Company may allow the process to be affected by the execution
activities.
If the write-down financial assets are recovered later, they shall be transferred back as impairment losses and recorded
into the profits and losses of the current period.
(2) Financial liabilities
Financial liabilities are classified at the initial recognition as financial liabilities measured at amortized cost and financial
liabilities measured at fair value and whose changes are included in the current profits and losses.
In addition to the following, the Company classifies financial liabilities as financial liabilities measured at amortized
cost costs:
① Financial liabilities measured at fair value and whose changes are included in current profits and losses, include
transactional financial liabilities (including derivatives of financial liabilities) and financial liabilities designated as
measured at fair value and whose changes are included in current profits and losses.
② The transfer of financial assets does not meet the conditions for termination of recognition or continues to be
involved in the transferred financial assets.
③ The financial guarantee contract not subject to Item ① or ② of this Article and a loan commitment at a below
market rate that is not subject to Item ① of this Article. In a business merger not under the same control, if the
contingent consideration recognized by the Company as the acquirer forms the financial liabilities, the financial
liabilities should be measured at fair value and the changes should be included in the profit and loss of the current
period.
At the time of initial recognition, in order to provide more relevant accounting information, the Company may
designate financial liabilities measured at fair value and recorded in the profit and loss of the current period, which
meets one of the following conditions:
financial liabilities on a fair value basis in accordance with the corporate risk management or investment strategy set
out in formal written documents, and report internally to key management on that basis. Such designation, once made,
cannot be revoked.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The financial liabilities of the Company are mainly financial liabilities measured at amortized cost, including notes
payable and accounts payable, other payables, borrowings and bonds payable, etc. Such financial liabilities are initially
measured according to the fair value after deducting transaction expenses, and subsequently measured by the real
interest rate method. If the term is less than one year (including one year), it should be listed as current liabilities; if the
term is more than one year but is due within one year (including one year) from the balance sheet date, it should be
listed as non-current liabilities due within one year; the rest are listed as non-current liabilities.
When the current obligation of the financial liability has been discharged in whole or in part, the Company terminate
the recognition of the part of the financial liability or discharged obligation. The difference between the book value of
the terminated part and the consideration paid shall be included in the current profit and loss.
If the current obligation of the financial liability (or a part of it) has been discharged, the Company shall terminate the
recognition of the financial liability (or such a part of the financial liability).
(3) Determination of fair value of financial instruments
For financial instruments with active market, the fair value should be determined by the quotation in the active market.
For financial instruments with no active market, the valuation techniques should be used to determine their fair value.
The company divides the input values used by the valuation technology at the following levels and uses them
successively:
① The first level of input value is an unadjusted offer of the same assets or liabilities in the active market that can be
obtained on the measurement date;
② The second level of input value is the input value directly or indirectly visible besides the first level of input value,
including: the quotation of similar assets or liabilities in the active market; the quotation of the same or similar assets
or liabilities in the nonactive market; the other observable input value other than the quotation, such as the interest
rate and yield curve observable during the normal quotation interval; the input value of market verification, etc.;
③ The third level of input value is the unobservable input value of the relevant assets or liabilities, including interest
rates that cannot be directly observed or cannot be verified by observable market data, stock volatility, future cash
flow of abandonment obligations in business mergers, financial forecasts made using their own data, etc.
(4) Follow-up measurement
After the initial recognition, the Company shall measure different categories of financial assets at amortized cost, fair
value and their changes in other comprehensive income or fair value and their changes in the current profit and loss.
After the initial recognition, the Company shall measure different categories of financial liabilities at amortized cost,
fair value and changes in the current profit or loss or by other appropriate methods.
The amortized cost of a financial asset or financial liability is determined by the initial recognized amount of the
financial asset or financial liability after the following adjustments:
① Deduct the repaid principal.
② Add or subtract the cumulative amortization amount formed by amortifying the difference between the initial
recognized amount and the due date amount by the effective interest rate method.
③ Excluding accumulated losses (only for financial assets).
The Company recognizes the interest income in accordance with the real interest rate method. Interest income should
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
be calculated from the book balance of financial assets multiplied by the effective interest rate unless:
income according to the amortized cost of the amortized assets and the actual interest rate of the financial assets.
subsequent period, the Company shall determine the interest income according to the amortized cost and actual
interest rate of the financial assets in the subsequent period. If the Company uses the real interest rate method to
calculate the credit impairment in the subsequent period, and the improvement can be objectively related to an event
occurring after the application of the above policy (if the credit rating of the debtor's credit rating is raised), the
Company transfers the real interest rate multiplied by the book balance of the financial assets.
(1) Classification of inventory
Inventory includes raw materials, work-in-process, semi-finished products, finished goods, merchandise inventory,
consumable materials, data resources, etc.Contract performance costs with an amortization period of no more than
one year or one operating cycle are also presented as inventory. (For "Contract Performance Cost", see Note Ⅳ, 28
and "Contract Acquisition Cost and Contract Performance Cost".)
(2) Method of valuation of issued issued
The inventory should be priced on the weighted average basis when issued.
(3) The basis for determining the net realizable value of inventory and the withdrawal method for inventory
depreciation reserve
On the balance sheet date, the inventory shall be measured according to the lower cost and the net realizable value. If
the inventory cost is higher than its net realizable value, the provision for inventory depreciation shall be withdrawn
and recorded into the current profit and loss. Net realizable value refers to the amount after the estimated selling price
of inventory minus the estimated cost, estimated sales expenses and related taxes at completion.
The net realizable value of various inventories is determined as follows:
① The inventory of goods directly used for sale, such as finished products, goods and materials used for sale, shall, in
the normal process of production and operation, determine the net realizable value after the estimated selling price of
the inventory minus the estimated sales expenses and relevant taxes.
② For the inventory of materials to be processed, its net realizable value is determined in the normal course of
production and operation by the estimated selling price of the finished products produced less the estimated cost to
be incurred at the time of completion, estimated selling expenses and related taxes.
③ On the balance sheet date, if one part of the same inventory has the contract price without the other part, the net
realizable value shall be determined respectively, and compared with the corresponding cost, the amount of the
withdrawal or reversal of the inventory depreciation provision shall be determined respectively.
Inventory depreciation provision shall be made according to a single inventory item (or inventory category), and
inventory depreciation provision shall be related to the same or similar product series produced or sold in the same
region, and is difficult to be measured separately from other items.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(4) Inventory system
The inventory system adopts the perpetual inventory system.
(5) The amortization method of low-value consumables and packaging
The low-value consumables are amortized by 50-50.
Contract assets refer to the right to receive consideration from customers for goods transferred, provided that such
right is subject to factors other than the passage of time.Where the Company sells two distinct goods to a customer
and has the right to receive consideration due to delivery of one good, but such right is still subject to delivery of the
other good, the right to receive consideration shall be recognized as a contract asset.Contract assets and contract
liabilities under the same contract are presented on a net basis, while those under different contracts are not offset.
The specific determination method and accounting treatment of expected credit losses on contract assets are
presented in “Note IV, 10 Financial Instruments”.
(1) Non-current assets held for sale or disposal group recognition criteria
If the Company recovers its book value primarily by sale (including the exchange of non-monetary assets with
commercial substance, the same below) rather than the continuous use of a non-current asset or disposal group, it
should be categorized under “held for sale”. The specific criteria shall simultaneously meet the following conditions:
① According to the practice of selling such assets or disposal groups in similar transactions, they can be sold
immediately under current conditions;
② The sale is most likely, where the company has made a resolution on a sale plan and obtained a definite purchase
commitment, and the sale is expected to be completed within a year.
Among them, the disposal group is a group of assets disposed of as a whole by sale or other method in a transaction,
and the liabilities directly related to those assets transferred in the transaction. Where the asset group or asset group
portfolio of the disposal group shares the goodwill acquired in the enterprise merger in accordance with the
Accounting Standards for Business Enterprises No.8-Asset Impairment, the disposal group shall include the goodwill
allocated to the disposal group.
(2) Accounting treatment methods
If the carrying value of non-current assets held for sale and disposal group is higher than the net amount after using
the fair value minus disposal expense when the initial measurement or remeasurement is made at the balance sheet
date, the carrying value should be written down to the net amount after using the fair value minus the disposal
expense, and the amount written down should be recognized as asset impairment loss and included in current profit
or loss, and the impairment provision for assets held for sale should also be made. For the disposal group, the
confirmed asset impairment loss first offset the carrying value of goodwill in the disposal group, and then offset the
book value of the non-current assets stipulated in the accounting Standards for Business Enterprises No.42- -Non-
current Assets held for Sale, Disposal Group and Terminated Operation (hereinafter referred to as the "Standards for
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Holding for Sale" in the disposal group). After deducting the selling expense, if the net amount of the fair value of the
disposal group held for sale increased on the subsequent balance sheet date, the amount previously written down shall
be restored and reversed within the amount of asset impairment loss recognized in the non-current assets as
prescribed by the held for sale standard after being classified into the holding for sale category, the carry-back amount
is recognised in profit or loss for the current period and its carrying value is increased in proportion to the carrying
value of each non-current asset in the disposal group as measured by the applicable hold-for-sale criteria other than
goodwill; The carrying value of goodwill that has been written off, as well as the asset impairment losses recognized
prior to classifying non-current assets as held for sale under the applicable holding for sale measurement criteria,
cannot be rolled back.
There is no depreciation or amortization of the non-current assets held for sale or the non-current assets in the
disposal group, and the interest and other expenses of the liabilities in the disposal group held for sale continue to be
recognized.
If the non-current assets or disposal group no longer meets the requirements of the held for sale category, it will not
continue to divide the held for sale category or remove the non-current assets from the disposal group held for sale
and measure below:
① The book value before the held for sale category, the amount adjusted for depreciation, amortization or
impairment assumed not to be recognized in the held for sale category;
② Recoverable amount.
(3) Termination of operation
Termination of operations is a component of ownership that is separate and has been disposed of or classified by the
Company under one of the following conditions:
① The component represents an independent main business or a separate main operating area;
② This component is part of a plan associated with the disposition of a separate principal business or a separate main
business area of operation;
③ The component is a subsidiary acquired exclusively for resale.
The Company shall separately report the profit and loss of terminated operation in the income statement, and the
impairment loss and loss amount of terminated operation and loss shall be presented as the profit and loss of
terminated operation.
The long-term equity investment mentioned in this part refers to the long-term equity investment that the Company
has the control, joint control or significant influence on the invested unit. The Company has no control, joint control
or significant influence of the invested unit as a financial assets accounting measured at fair value and included in the
current profits and losses. If the changes is non-tradable, the Company may choose to designate it as financial assets
accounting measured at fair value and whose changes are included in other comprehensive income. The accounting
policies are detailed in Note IV and 10 "Financial Instruments".
Joint control means the common control of the Company over an arrangement in accordance with the relevant
agreement, and the relevant activities of the arrangement must be decided after the unanimous consent of the
participants who share the control right. Significant impact means that the Company has the right to participate in the
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
decision-making of the financial and operational policies of the investee, but is unable to control or jointly control the
formulation of these policies together with other parties.
(1) Determination of the investment cost
For the long-term equity investment acquired by the enterprise merger under the same control, the initial investment
cost of the long-term equity investment shall be based on the merger date of the share of the book value of the
incorporated party in the consolidated financial statements of the final controlling party. The difference between the
initial investment cost of the long-term equity investment and the cash paid, the transferred non-cash assets and the
book value of the debts undertaken shall adjust the capital reserves; if the capital reserve is insufficient, the retained
earnings shall be adjusted. If the issue of equity securities is taken as the merger consideration, the capital reserves
shall be adjusted on the basis of the share of the shareholders' equity of the merged party in the consolidated financial
statements of the final controlling party as the initial investment cost of the long-term equity investment and the total
face value of the issued shares as equity, and the difference between the initial investment cost of the long-term equity
investment and the total face value of the issued shares; if the capital reserve is insufficient to offset, the retained
earnings shall be adjusted. If the equity of the merged party under the same control is acquired through multiple
transactions step by step, and the enterprise merger under the same control, whether it is a "package transaction"
respectively: for a "package transaction", each transaction shall be treated as a transaction that obtains control right. If
it does not belong to the "package transaction", the capital reserves shall be adjusted on the merger date according to
the sum of the book value of the equity of the shares of the final controller and the initial investment cost of the book
value before the merger date; if the capital reserve is insufficient, the retained earnings shall be adjusted. The equity
investment held by the equity method before the merger date or recognized as financial assets measured at fair value
and whose changes are included in other comprehensive income shall not be accounted for for the time being.
For the long-term equity investment acquired by the enterprise merger not under the same control, the merger cost
shall be taken as the initial investment cost of the long-term equity investment on the purchase date, and the merger
cost includes the sum of the assets paid by the acquirer, the liabilities incurred or assumed, and the equity securities
issued. If the equity of the acquirer is acquired step by step through multiple transactions and the enterprise merger is
not under the same control, it shall be treated whether it belongs to the "package transaction" respectively: for the
"package transaction", each transaction shall be treated as a transaction acquiring control. If it does not belong to the
"package transaction", the sum of the book value of the equity investment of the original acquiree plus the new
investment cost shall be the initial investment cost of the long-term equity investment calculated according to the cost
method. If the equity originally held is accounted by the equity method, the relevant other comprehensive income
shall not be treated for the time being.
The fee of audit, legal services, evaluation and consulting and other related management matters incurred by the
consolidated party or the acquirer shall be recorded into the current profits and losses at the time of occurrence.
Equity investments other than long-term equity investments formed by business mergers are initially measured at cost,
which depends on the manner in which long-term equity investments are acquired. It is determined in accordance
with the actual cash purchase price paid by the Company, the fair value of the equity securities issued by the Company,
the value agreed in the investment contract or agreement, the fair value or original book value of the assets exchanged
in the non-monetary asset exchange transaction, and the fair value of the long-term equity investment itself. Fees,
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
taxes and other necessary expenses directly related to the acquisition of long-term equity investments are also included
in the cost of investment. For the additional investment that can exert a significant impact on the invested unit or
exercise joint control but does not constitute control, the cost of long-term equity investment is the sum of the fair
value of the original equity investment plus the cost of the new investment determined in accordance with Accounting
Standard for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
(2) Follow-up measurement and profit and loss recognition methods
The long-term equity investment with joint control (except the co-operator) or significant impact, shall be accounted
by the equity method. In addition, the Company's financial statements use the cost method to account for the long-
term equity investment that can be controlled by the invested unit.
① Long-term equity investment calculated by the cost method
When the cost method is used, the long-term equity investment is priced at the cost of the initial investment, and the
cost of the additional or withdrawn investment is adjusted for the long-term equity investment. In addition to the cash
dividends or profits actually paid at the time of obtaining the investment or the cash dividends declared but not yet
paid included in the consideration, the investment income of the current period shall be recognized in accordance
with the cash dividends or profits declared by the invested unit.
② Long-term equity investment accounted for by the equity method
When using the equity method, if the initial investment cost of a long-term equity investment is greater than the fair
value share of the investee's identifiable net assets when the investment is made, the initial investment cost of the
long-term equity investment should not be adjusted; If the initial investment cost is less than the fair value share of the
identifiable net assets of the investee, the difference should be included in the current profit or loss, and the cost of
long-term equity investment should be adjusted at the same time.
When using the equity method, the investment income and other comprehensive income shall be confirmed according
to the share of the book value of the invested unit; the value and the book value of the long-term equity investment
shall be adjusted according to the profit or cash dividend of the long-term equity investment and included in the
capital reserve. When recognizing the share of the net profit and loss of the invested entity, the net profit of the
invested entity shall be adjusted on the basis of the fair value of the identifiable assets of the invested entity at the time
of obtaining the investment. If the accounting policies and accounting periods adopted by the invested entity are
inconsistent with the Company, the financial statements of the invested entity shall be adjusted in accordance with the
accounting policies and accounting periods of the Company, and the investment income and other comprehensive
income shall be confirmed. For the transactions between the Company and the joint venture, if the assets invested or
sold do not constitute business, the unrealized internal transaction gains and losses shall be offset by the Company,
and the investment gains and losses shall be recognized. However, the unrealized internal transaction loss incurred by
the Company and the invested entity belongs to the impairment loss of the transferred assets and shall not be offset.
If the assets invested by the Company into a joint venture or an associate constitute a business, and the investor thus
obtains long-term equity investment but does not acquire control, the fair value of the invested business shall be taken
as the initial investment cost of the new long-term equity investment, and the difference between the initial investment
cost and the book value of the invested business shall be fully included in the current profit or loss. Where the assets
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
sold by the Company to a joint venture or associate constitute a business, the difference between the consideration
obtained and the carrying value of the business should be fully included in the current profit or loss. Where the assets
purchased by the Company from associates and joint ventures constitute business, the accounting treatment shall be
carried out in accordance with the provisions of Accounting Standard for Business Enterprises No. 20 - Business
Combination, and the gain or loss related to the transaction shall be fully recognized.
When confirming the net loss incurred by the investee, the book value of the long-term equity investment and the
other long-term equity that substantially constitute the net investment of the investee shall be written down to zero. In
addition, if the Company has the obligation to bear additional losses to the investee, the estimated liabilities shall be
recognized according to the expected obligations and included in the current investment losses. If the invested entity
achieves net profit in the following period, the Company shall resume the recognized income share after the earnings
share makes up for the unrecognized loss share.
③ Acquisition of minority equity
At the time of preparing the consolidated financial statements, the capital reserves shall be adjusted due to the
difference between the new long-term equity investment of the purchase of minority shares and the share of the net
assets continuously calculated by the subsidiary since the purchase date (or merger date). If the capital reserves are
insufficient to write down, the retained earnings shall be adjusted.
④ Disposal of long-term equity investments
In the consolidated financial statements, the parent company shall partially dispose of the long-term equity investment
of the subsidiary and the difference between the disposal price and the long-term equity investment of the subsidiary
and the disposal of the relevant accounting policies described in Note IV, 6, "Judgment Standard for Control and
Preparation Method of Consolidated Financial Statements" (2).
For the disposal of long-term equity investment under other circumstances, the difference between the book value
and the actual obtained price shall be recorded in the current profit and loss.
For the long-term equity investment calculated by the equity method, if the remaining equity after disposal is still
calculated by the equity method, the other comprehensive income parts originally included in the shareholders' equity
shall be treated on the same basis as the direct disposal of the related assets or liabilities of the invested unit in the
corresponding proportion. The owner's equity recognized due to the owner's equity other than the net profit and loss,
other comprehensive income and profit distribution shall be transferred to the profit and loss of the current period.
If a long-term equity investment is accounted for by the cost method and the remaining equity is still accounted for by
the cost method after disposal, the other comprehensive income recognized by the equity method or financial
instrument recognition and measurement criteria before the acquisition of control of the investee shall be accounted
for on the same basis as the direct disposal of the relevant assets or liabilities by the investee. And carry forward the
current profit and loss pro rata; Changes in owners' equity other than net profit and loss, other comprehensive income
and profit distribution in the net assets of investee units recognized as a result of the equity method of accounting are
carried forward to current profit and loss in proportion.
If the Company loses control of the investee due to the disposal of part of the equity investment, when preparing
individual financial statements, the remaining equity after disposal can exercise common control or exert significant
influence on the investee, it shall be calculated according to the equity method, and when the remaining equity is
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
regarded as self-acquired, it shall be adjusted by the equity method. If the remaining equity after disposal cannot jointly
control or exert significant influence on the investee, it shall be accounted for in accordance with the relevant
provisions of the Standards for the recognition and measurement of financial instruments, and the difference between
the fair value and the carrying value on the date of loss of control shall be included in the current profit or loss. Other
comprehensive income recognised by the equity method or financial instrument recognition and measurement
standards before the Company acquired control of the investee shall be accounted for on the same basis as the direct
disposal of the relevant assets or liabilities by the investee when it loses control of the investee. Changes in owner's
equity other than net profit and loss, other comprehensive income and profit distribution in the net assets of the
investee recognized by the equity method are transferred to current profit and loss when the control over the investee
is lost. Among them, if the remaining equity after disposal is accounted for by the equity method, other
comprehensive income and other owner's equity are carried forward in proportion; If the remaining equity after
disposal is changed to accounting treatment according to the recognition and measurement standards of financial
instruments, other comprehensive income and other owners' equity are all carried forward.
If the Company loses its joint control or significant impact on the invested unit due to the disposal of part of the
equity investment, the remaining equity after disposal shall be calculated according to the financial instrument
recognition and measurement criteria, and the difference between the fair value and the book value on the day of the
loss of joint control or significant impact shall be recorded into the current profit and loss. The original equity
investment due to the equity method and accounting confirmation of other comprehensive income, in the termination
of the accounting of the basis of the same, because of the investment except the net profit and loss, other
comprehensive income and profit distribution of other owner's equity changes, when the equity method all into the
current investment income.
The Company will dispose of its equity investment in subsidiaries step by step through multiple transactions until it
loses control. If the above transactions are package transactions, each transaction shall be accounted for as one
transaction disposing of the equity investment of subsidiaries and losing control, and the difference between the
disposal price of each disposal and the book value of the long-term equity investment corresponding to the equity
disposed of before the loss of control shall be the difference between the disposal price and the long-term equity
investment corresponding to the equity disposed before the loss of control. First recognized as other comprehensive
income, when the loss of control is transferred to the loss of control of the current period profit and loss.
See Note Ⅳ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method of
impairment provisions for long-term equity investment.
The company's investment real estate refers to the real estate held for the purpose of earning rent or capital
appreciation, or both, including the land use right leased, the land use right held and ready to be transferred after the
appreciation, and the leased buildings. The investment real estate shall be initially measured according to the cost, and
the cost model shall be adopted to subsequently measure the investment real estate or the fair value model on the
balance sheet date.
(1) Adopt the cost model
Investment real estate is depreciated or amortized by the following useful life and estimated net residual value rate:
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Name Service life Estimated net residual value Annual depreciation rate or
rate amortization rate
House and buildings 20-40 years 0%-10% 2.25%-5.00%
See Note Ⅳ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method of investment
real estate impairment provisions using the cost model.
(2) Adopt the fair value model
Without depreciation or amortization of the investment real estate, the book value shall be adjusted based on the fair
value of the investment real estate on the balance sheet date, and the difference between the fair value and the original
book value shall be included in the current profit and loss.
An investment property shall be derecognized on disposal or when it is permanently withdrawn from use and no
future economic benefits are expected from its disposal. Proceeds from the sale, transfer, retirement, or destruction of
the investment property deducting its carrying amount and related taxes shall be recognized in profit or loss for the
current period.
(1) Fixed assets recognition conditions
Fixed assets refer to tangible assets held for the production of goods, providing labor services, leasing or operation
and management, and with a service life of more than one fiscal year. Fixed assets shall be confirmed if the following
conditions are met:
① Economic benefits related to this fixed asset are likely to flow into the enterprise;
② The cost of this fixed asset can be measured reliably.
(2) Various depreciation methods of fixed assets
All kinds of fixed assets adopt the straight line method and make depreciation according to the following useful life,
estimated net residual value rate and depreciation rate:
Categories Depreciation method Service life Estimated net salvage rate Yearly depreciation rate
Houses and buildings straight-line depreciation 20-40 years 0%-10% 2.25%-5.00%
method
Ships and nets straight-line depreciation 5-30 years 3%-5% 3.17%-19.40%
method
Machinery equipment straight-line depreciation 8-20 years 0%-10% 4.50%-12.50%
method
Delivery equipment straight-line depreciation 5 years 0%-10% 18.00%-20.00%
method
Furniture and office straight-line depreciation 5 years 0%-10% 18.00%-20.00%
equipment method
(3) See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and the withdrawal method of
the impairment provisions of fixed assets.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The cost of the project under construction shall be determined according to the actual project expenditure, including
the project expenditure incurred during the period under construction, the capitalized borrowing expenses before the
project reaches the predetermined usable state and other related expenses.
The construction under construction is carried forward to fixed assets after reaching the predetermined usable state, in
which the construction under construction is carried forward to fixed assets when delivered with fishing conditions,
and the construction is carried forward to fixed assets when the physical construction (including installation) work has
been fully completed or has been substantially completed.
See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and impairment provision method
of the construction under construction.
(1) If the loan expenses incurred by the Company can be directly attributed to the purchase, construction or
production of the assets meeting the capitalization conditions, they shall be capitalized and included in the relevant
asset costs. Assets that meet the capitalization conditions refer to the assets such as fixed assets, investment real estate
and inventory that take a long time (usually one year or more) for purchase, construction or production activities to
reach the predetermined marketable status. Other borrowing expenses shall be recognized as expenses according to
the amount of occurrence and shall be included in the current profits and losses. Borrowing expenses include
borrowing interest, amortization of discount or premium, auxiliary expenses and exchange difference due to foreign
currency borrowing, etc.
(2) If the borrowing costs meet the following conditions, the capitalization should begin:
① Asset expenditure has been incurred, including the cash paid for the purchase, construction or production of assets
that meet the conditions for capitalization, the transfer of non-cash assets or the assumption of interest-bearing debts;
② Borrowing expenses have been incurred;
When the purchase, construction or production of assets meeting the capitalization conditions reach the
predetermined usable or marketable status, the borrowing expenses shall be capitalized.
In case of the abnormal interruption of the assets for more than 3 consecutive months, the capitalization of the
borrowing expenses shall be suspended. The borrowing expenses incurred during the interruption period are
recognized as expenses and recorded into the current profits and losses until the purchase and construction of the
assets or the production activities resume. If the interruption is due to the capitalization of the qualified assets
purchased or produced as necessary for the intended usable or marketable status, the capitalization of the borrowing
costs continues.
(3) During the capitalization period, the amount of interest (including amortization of discounts or premiums)
capitalized for each accounting period shall be determined as follows:
① Where a special loan is borrowed for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount shall be determined by the interest expense actually incurred in the current
period, minus the interest income of the unused borrowing funds deposited in the bank or the investment income
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
obtained from temporary investment.
② Where a general loan is occupied for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount of interest on which the general loan shall be capitalized shall be calculated
and determined by multiplying the weighted average of the accumulated asset expenditure exceeding the special loan
by the capitalization rate of the general loan occupied. The capitalization rate is determined according to the weighted
average interest rate of general borrowing.
Where there is a discount or premium for the loan, the amount of discount or premium for each accounting period
shall be determined according to the actual interest rate method and the amount of interest for each period shall be
adjusted.
During the capitalization period, the amount of interest in each accounting period shall not exceed the amount of
interest actually incurred by relevant loans in the current period.
(4) The auxiliary expenses incurred by special loans, which are incurred before the assets purchased, built or produced
eligible for capitalization reach the predetermined usable or marketable state, are capitalized according to the amount
incurred at the time of occurrence and are included in the cost of the assets eligible for capitalization; If an asset that is
purchased, built or produced and eligible for capitalization has reached a predetermined usable or marketable state, it
shall be recognized as an expense based on the amount incurred at the time of occurrence and recorded in the current
profit or loss. Auxiliary expenses incurred by general loans are recognized as expenses according to their amount at
the time of occurrence and are included in current profit or loss.
(1) Intangible assets refer to the identifiable non-monetary assets owned or controlled by an enterprise without a
physical form. Intangible assets are initially measured according to the cost. Analyze and judge the service life of the
intangible assets when they are acquired.
(2) The Company generally determines the useful life of intangible assets:
① Information on the usual life cycle of the product produced with the asset;
② Technology, process and other aspects of the current situation and the estimation of the future development trend;
③ The market demand for the products or services produced with the asset;
④ Action expected by current or potential competitors;
⑤ Prospective maintenance expenditures to maintain the ability to bring economic benefits to the asset, and the
Company's ability to expect to pay related expenditures;
⑥ Relevant legal provisions or similar restrictions on the control period of the asset, such as the concession period,
lease term, etc.;
⑦ The correlation with the service life of other assets held by enterprises.
If it is impossible to foresee the period of intangible assets to bring economic benefits to the Company, it shall be
regarded as intangible assets with uncertain service life.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(3) For intangible assets with limited service life, the system shall amortize reasonably (or straight line method) during
the service life. At the end of each year, the Company will review the service life and amortization methods of
intangible assets with limited service life. If the service life and amortization method of intangible assets are different
from the previous estimate, the amortization period and amortization method will be changed. For the intangible
assets with limited service life, the service life and the estimated net residual value rate of the intangible assets are as
follows:
Name Service life Judging basis Estimated net
of service life salvage rate
Land use right 42-49 years Term of land certificate 0%
Software 5-10 years Historical experience 0%
See Note Ⅳ and 20 "Long-term asset Impairment" for the impairment test method and impairment provision
withdrawal method of intangible assets with limited service life.
(4) Intangible assets with uncertain service life include intangible assets that have been continued to be used after
amortization, while intangible assets with uncertain service life shall not be amortized
(5) Internal research and development
stage, including:
substantially improved materials, devices, products, etc.
the current period's profit and loss; expenditures during the development phase that meet the following conditions are
recognized as intangible assets:
with the intangible assets exist in the market or that the intangible assets themselves exist in the market, and that the
intangible assets will be used internally, their usefulness shall be proved;
assets and having the ability to use or sell the intangible assets;
For non-current non-financial assets such as fixed assets, construction projects under construction, use assets with
limited use life, intangible assets, investment real estate measured by cost mode and long-term equity investment in
subsidiaries, joint ventures and joint ventures, the Company determines whether there are signs of impairment on the
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and the impairment
test shall be conducted. Goodwill, intangible assets with uncertain service life and intangible assets that have not yet
reached the usable state shall be subject to impairment test every year, regardless of whether there are signs of
impairment.
If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value, the
impairment provision shall be drawn according to the difference and included in the impairment loss. The recoverable
amount is the higher value between the fair value of the asset minus the disposal expense and the present value of the
estimated future cash flow of the asset. The fair value of the asset is determined according to the price of the sales
agreement in fair trading; if there is no sales agreement but there is an active asset market, the fair value is determined
according to the acquiree bid of the asset; if there is no sales agreement and asset active market, the fair value of the
asset is estimated on the basis of the best-available information. The disposal expenses include legal expenses related
to the disposal of the assets, related taxes, handling fees, and direct expenses incurred to bring the assets to a
marketable status. The present value of the estimated future cash flow of the asset shall be determined according to
the amount of the estimated future cash flow generated during the continuous use of the asset and the final disposal at
an appropriate discount rate. The asset impairment provision is calculated and confirmed on the basis of a single asset.
If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be
determined by the asset group to which the asset belongs. Asset groups are the minimum portfolio that can
independently generate cash inflows.
In the case of impairment test of goodwill, the carrying value of goodwill is allocated to the relevant asset group
reasonably from the date of purchase; if it is difficult to allocate to the relevant asset group, it shall be allocated to the
relevant asset group portfolio. The relevant asset group or asset group portfolio is an asset group or asset portfolio
that can benefit from the synergies of business consolidation and is not greater than the reporting division determined
by the Company.
When the impairment test is conducted on the relevant asset group or asset group portfolio containing goodwill, if
there are signs of impairment in the asset group or asset group portfolio related to goodwill, the impairment test shall
be conducted on the asset group or asset group portfolio excluding goodwill to calculate the recoverable amount and
confirm the corresponding impairment loss. Then conduct impairment tests on the asset group or portfolio of asset
groups containing goodwill, Compare its carrying value to the recoverable amount, If the recoverable amount is lower
than the carrying value, The amount of impairment loss is first offset against the carrying value of goodwill in the asset
group or portfolio, According to the proportion of the book value of other assets except goodwill in the asset group
or asset group portfolio, offset the book value of other assets, Provided that the book value of each asset after
deduction shall not be lower than the fair value of the asset minus the net amount (if certain) and the present value of
the estimated future cash flow of the asset (if certain), And not lower than zero.
Once the impairment loss of the above assets is recognized, the value shall not be recovered in the later period.
Long-term deferred expenses are the expenses incurred by the Company that shall be borne by the current and
subsequent period for more than one year (excluding one year). Long-term deferred expenses are equally amortized
during the benefit period. If the long-term deferred expenses cannot benefit the later accounting period, the
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
unamortized surplus value will be transferred to the current profit and loss.
Long-term deferred expenses are amortized on a straight-line basis over the following period:
Name Amortization period
Renovation costs 2-10years
Contract liabilities reflect the obligation to transfer goods to the customer for the consideration received or receivable.
If the customer has paid the contract consideration or has obtained the right to receive the contract consideration
unconditionally before the transfer to the customer, the contract liabilities shall be recognized according to the
amount received or receivable when the actual payment and the amount due. Contractual assets and liabilities under
the same contract shall be listed in net value, and contractual assets and liabilities under different contracts shall not be
offset.
(1) The range of employee compensation
Employee compensation refers to the various forms of compensation or compensation given by the company for the
service provided by the employee or for the termination of the labor relationship. Employee compensation includes
short-term compensation, post-resignation benefits, dismissal benefits and other long-term employee benefits. The
benefits provided by the company to the employees' spouses, children, dependants, family of the deceased employees
and other beneficiaries also belong to the employee compensation.
(2) Short-term compensation refers to the full employee compensation to be paid within 12 months after the end of
the annual reporting period provided by relevant services.
Short-term salary includes social insurance premiums such as employees' wages, bonuses, allowances and subsidies,
employee welfare, medical insurance, working injury insurance and maternity insurance, housing provident fund, trade
union fund and employee education fund, short-term paid absence, short-term profit sharing plan, non-monetary
welfare and other short-term salary.
Short-term compensation during the accounting period when the employee provides services for the company, the
actual short-term compensation is recognized as a liability and recorded in the current profit and loss or related asset
costs.
Post-resignation benefits refer to all forms of remuneration and benefits provided by the Company for the retirement
of the employee or the termination of the labor relationship with the Company, except for short-term compensation
and dismissal benefits.
Post-resignation benefit plan include the defined contribution plan and the defined benefit plan. Among them, the
defined contribution plan is the post-resignation welfare plan in which the Company no longer assumes further
payment obligations; the defined benefit plan refers to the post-resignation welfare plan other than the defined
contribution plan.
The defined contribution plan includes basic endowment insurance, unemployment insurance, etc. During the
accounting period when the employee provides the service, the amount payable calculated according to the defined
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
contribution plan shall be recognized as liabilities and included in the current profit and loss or related asset costs.
At the end of the reporting period, the employee compensation costs arising from the defined benefit plan should be
recognized as the following components:
① Service costs, including current service costs, past service costs, and settlement gains or losses.
② Net interest on the net liabilities or net assets of the defined benefit plan, including interest income on the planned
assets, interest expense on the obligations of defined benefit plan, and interest affected by the asset ceiling.
③ Remeasure the change in the net liabilities or net assets of the defined benefit plan.
Unless other accounting standards require or allow employee benefit costs to be included in asset costs, items ① and
② above shall be included in current profits and losses; item ③ shall be included in other comprehensive benefits and
will not be returned to profits and losses during subsequent accounting periods, but these amounts recognized in
other comprehensive benefits may be transferred within the equity.
Under the defined benefit plan, the past service costs are recognized as current expenses on the following date:
Determine a settlement benefit or loss when setting a defined benefit plan settlement.
(3) Dismissal benefits refer to the compensation given by the Company to the employee to terminate the labor
relationship with the employee before the expiration of the labor contract, or to encourage the employee to voluntarily
accept the reduction.
If the Company provides dismissal benefits to the employees, the Company shall confirm the liabilities and include in
the current profit and loss: when the Company cannot unilaterally withdraw the dismissal benefits due to the
termination of labor relationship plan or reduction proposal; when the Company recognizes the costs or expenses
related to the restructuring of the dismissal benefits.
(4) Other long-term employee benefits refer to all employee compensation except short-term compensation, post-
resignation benefits and dismissal benefits, including long-term paid absence, long-term disability benefits, long-term
profit sharing plan, etc.
Other long-term employee benefits provided by the Company to employees that meet the conditions of the deposit
plan shall apply to the relevant provisions of the above deposit plan.
Except for the circumstances that meet the conditions for the defined contribution plan, other long-term employee
welfare net liabilities or net assets shall be recognized and measured in accordance with the relevant provisions of the
defined benefit plan. At the end of this period, the Company recognizes the employee compensation costs generated
by other long-term employee benefits as the following components:
① Service cost.
② Net interest on other long-term employee welfare net liabilities or net assets.
③ Re-measure changes in the net liabilities or net assets of other long-term employee benefits.
In order to simplify the relevant accounting treatment, the total net amount of the above items is included in the
current profit or loss or related asset costs.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
liabilities:
(1) This obligation is the current obligation of the enterprise;
(2) Performing this obligation is likely to lead to the outflow of economic benefits from the enterprise;
(3) The amount of the obligation can be reliably measured.
The estimated liabilities shall be initially measured at the best estimate of the expenditures required to meet the
relevant current obligations.
(4) Onerous contract
An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed
the economic benefits expected to be received under it. When a contract to be fulfilled becomes an onerous contract,
and the obligations arising from it meets the aforementioned recognition conditions of provisions, the portion of the
estimated contract loss that exceeds the recognized impairment loss (if any) on the subject assets of the contract shall
be recognized as a provision.
(5) Constructive obligation
For detailed formal restructuring plans that have been announced, the direct expenses related to restructuring shall be
recognized as the provision amount, provided that the aforementioned recognition conditions of provisions are met.
[For constructive obligations in the sale of part of a business, restructuring-related obligations are recognized only
when the Company promises to sell part of its business (that is, a binding sale agreement has been executed).]
(1) Accounting treatment method of share payment
Share payment is a transaction that grants the equity instruments or assumes the liabilities determined based on the
equity instruments for the purpose of obtaining the services provided by the employee or other parties. Share payment
is divided into share payment settled by equity and share payment settled in cash.
① Share payments settled by equity
Share payment for equity settlement of services provided by the employee, should be measured at the fair value of the
employee equity instrument on the grant date. The amount of the fair value shall be calculated in the relevant costs or
expenses on the basis of the best estimate of the waiting period, including the relevant costs or expenses on the grant
date and the capital reserve shall be increased accordingly.
On each balance sheet date during the waiting period, the Company makes the best estimate and corrects the
estimated number of feasible equity instruments based on the latest subsequent information, including changes in the
number of feasible employees. The impact of the above estimate shall be included in the relevant costs or expenses of
the current period, and the capital reserves shall be adjusted accordingly.
In exchange for the equity settlement of the fair value of the service can be measured reliably, according to the fair
value of the service in the date, if the fair value of the other services cannot be measured reliably, but the fair value of
the equity instrument can be measured reliably, according to the fair value of the date of the service, included in the
relevant costs or expenses, and increase the shareholders' equity accordingly.
② Payment in shares settled in cash
Share payments settled in cash are measured at the fair value of the liabilities determined on the basis of shares or
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
other equity instruments undertaken by the Company. If the right is available immediately after the grant, increase the
liabilities on the grant date and the amount of the right on the basis of the best estimate on the basis of the fair value
of the liabilities.
On each balance sheet date and settlement date before the settlement of relevant liabilities, the fair value of the
liabilities shall be measured and the changes shall be included in the current profit and loss.
(2) Modify or terminate the relevant accounting treatment of the share payment plan
When the Company changes the share payment plan, if the modification increases the fair value of the granted equity
instrument, the increase in the acquired services shall be recognized according to the increase in the fair value of the
equity instrument. The increase in the fair value of the equity instrument is the difference between the fair value of the
equity instrument on the date of amendment before and after the amendment. If the amendment reduces the total fair
value of share payment or adopts any other way unfavorable to the employee, the accounting for the services obtained
shall be deemed to have never occurred unless the Company cancels part or all of the granted equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the Company will treat the cancellation of the
granted equity instrument as an accelerated exercise of right, immediately record the amount recognized during the
remaining waiting period into the current profit and loss, and recognize the capital reserves. If the employee or other
party can choose to meet the non-viable conditions but not within the waiting period, the company will cancel them as
the interest granting instrument.
(3) Accounting for share payment transactions involving the Company and shareholders or actual controllers of the
Company
Where one of the settlement enterprises of the Company and the enterprise receiving services is outside the Company,
and one of the other is outside the Company, accounting treatment shall be made in the consolidated financial
statements of the Company in accordance with the following provisions:
① If the settlement enterprise settles with its own equity instrument, the share payment transaction shall be treated as
share payment for equity settlement; in addition, as share payment for cash settlement.
If the settlement enterprise is an investor of the service enterprise, it shall be recognized as a long-term equity
investment in the service enterprise according to the fair value of the equity instrument on the grant date, and the
capital reserves (other capital reserves) or liabilities shall be recognized.
② If the service enterprise has no settlement obligation or the employee is its own equity instrument, the share
payment transaction shall be treated as the share payment for equity settlement; if the service enterprise has the
settlement obligation and is not its own equity instrument, the share payment transaction shall be treated as the share
payment for cash settlement.
For the share payment transaction between the enterprises in the Company, and the settlement enterprise is not the
same enterprise, the confirmation and measurement of the share payment transaction in the individual financial
statements of the service enterprise and the settlement enterprise shall be handled in accordance with the above
principles.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(1) The distinction between perpetual bonds and preferred shares
Financial instruments such as perpetual bonds and preferred shares issued by the Company, which meet the following
conditions:
① The financial instrument does not include the contractual obligation to deliver cash or other financial assets to
other parties, or to exchange financial assets or financial liabilities with other parties under potentially adverse
conditions;
② If the financial instrument is required to be settled, if the financial instrument is not derivative, the contractual
obligation of delivering a derivative, the Company can only settle the financial instrument by exchanging a fixed
amount of cash or other financial assets in a fixed amount of its own equity instruments.
Except for financial instruments that can be classified as equity instruments under the above conditions, other
financial instruments issued by the Company shall be classified as financial liabilities.
If the financial instruments issued by the Company are compound financial instruments, they shall be recognized as a
liability according to the fair value of the liability component, and shall be recognized as "other equity instruments"
according to the amount actually received after deducting the fair value of the liability component. The transaction
costs incurred in the issuance of compound financial instruments shall be apportioned between the liability
components and the equity component according to their respective proportion to the total issuance price.
(2) Accounting methods for perpetual debt and preferred shares, etc
Financial instruments such as perpetual debt or preferred shares, or financial instruments classified as financial
liabilities, whose related interest, dividends (or dividends), gains or losses, and gains or losses arising from redemption
or refinancing, are included in the current profit and loss, except for the borrowing expenses meeting the
capitalization conditions (see Note IV and 18 "borrowing expenses").
For financial instruments such as perpetual bonds and preferred shares classified as equity instruments, upon issuance
(including refinancing), repurchase, sale or cancellation, the Company shall be treated as a change in equity, and the
relevant transaction costs shall also be deducted from the equity. The Company treats the distribution of the equity
instrument holder as a profit distribution.
The Company does not recognize the change in the fair value of the equity instruments.
Accounting policies used for revenue recognition and measurement
(1) Revenue recognition principle
When the contract with the customer meets both of the following conditions, revenue is recognized when the
customer obtains control of the relevant goods:
① The parties have approved the contract and undertake to perform their respective obligations;
② The contract specifies the rights and obligations of the parties related to the transfer of the goods or services
provided;
③ The contract has a clear payment clause related to the transferred goods;
④ The contract has commercial substance, that is, the performance of the contract will change the risk, time
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
distribution or amount of the Company's future cash flow;
⑤ A consideration entitled to for the transfer of goods to a customer is likely to be recovered.
Assess the contract on the start date of the contract, identify the individual performance obligations contained in the
contract, and share the transaction price to each individual performance obligation in relative proportion to the
individual selling price of the goods promised by each individual performance obligation. The influence of variable
consideration, significant financing components existing in the contract, non-cash consideration, payable customer
consideration and other factors are considered in determining the transaction price. Then determine whether the
individual performance obligation should be performed within a certain period or at a certain point, and recognize the
income respectively when performing each individual performance obligation.
If one of the following conditions is met, it shall be performed within a certain period; otherwise, or at a certain point:
time;
and the enterprise has the right to collect money for the accumulated performance that has been completed during the
whole contract period.
For the performance obligations performed within a certain period of time, the revenue shall be recognized according
to the performance progress during that period. The performance progress shall be determined by the input method
or the output method according to the nature of the transferred goods. If the performance progress cannot be
reasonably determined and the cost incurred is expected to be compensated, the income shall be recognized according
to the amount of the cost incurred until the performance progress can be reasonably determined.
If one of the above conditions is not met, the revenue will be apportioned to the transaction price of the individual
performance obligation at the point when the customer obtains control of the relevant goods. When determining
whether the customer has acquired control of the commodity:
<1> The enterprise has the right to current payment for the goods, that is, the customer has the obligation of current
payment for the goods;
<2> The enterprise has transferred the legal ownership of the commodity to the customer, that is, the customer has
the legal ownership of the commodity;
<3> The enterprise has transferred the product to the customer, that is, the customer has the physical possession of
the commodity;
<4> The enterprise has transferred the main risks and remuneration in the ownership of the commodity to the
customer, that is, the customer has acquired the main risks and remuneration in the ownership of the commodity;
<5> The customer has accepted the item;
<6> Other indications that the customer has acquired control of the goods.
(2) Methods of revenue recognition used by the Company
① Revenue recognized by the Company at a point in time in the control over assets
For the foreign sale of seine fish, the Company uses sales contracts and settlement contracts as the basis, recognizes
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the change of ownership based on the date of settlement contracts, and then recognizes revenue accordingly.
Most of the Company’s long-line fishing utensil and fishing goods will be transported back to China for sale. Sales
contracts and settlement contracts will be used as the basis. The Company recognizes the change of ownership based
on the date of settlement contracts and then recognizes revenue accordingly.
Processing of aquatic products for domestic sale by the Company: Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.
issues shipment confirmations according to faxed or email orders from domestic clients. The Company delivers goods
based on shipping notes issued by the sales department and confirmed by the warehouse department. After clients
acknowledge receipt, the Company will recognize revenue.
Processing of aquatic products for foreign sale by the Company: After receiving purchase orders from foreign clients,
the international trade department will issue export shipment confirmations and arrange the storage and transport
department to prepare the goods. The Company will revenue sales revenue based on shipping notes, packing lists,
customs declaration forms, and other export documents.
② Revenue recognized by the Company by performance period:
The Company’s revenue from cold storage: After receiving orders from clients and after the goods are put in storage,
the warehouse department will issue warehouse warrants to clients to confirm the specific names, specifications,
pieces, weight, and storage dates. After the warehouse warrants are signed by the warehouse manager and confirmed
by clients, the Company will recognize revenue by calculating the storage fees based on the actual number of storage
days.
(1) Method of determining the amount of assets related to the contract cost
The assets related to the contract costs include the contract acquisition costs and the contract performance costs.
Contract acquisition cost, that is, if the incremental cost incurred in the contract acquisition is expected to be
recovered, it is recognized as an asset as the cost of contract acquisition. Incremental cost refers to the cost that will
not occur without obtaining a contract (such as sales commission, etc.). If the amortization period of the asset does
not exceed one year, it may be recorded into the current profit and loss at the time of occurrence.
Other expenses incurred in the Company to obtain the Contract in addition to the incremental cost expected to be
recovered (e. g. travel expenses, bid expenses, bid expenses, and related expenses incurred in preparing the bid
materials) shall be recorded in the current profits and losses upon occurrence, unless these expenses are clearly borne
by the customer.
Contract performance cost, that is, the cost incurred in the performance of the contract, which does not fall within the
scope of other accounting standards for enterprises other than the Accounting Standards for Business Enterprises
No.14-Revenue (2017 Revision) and meets the following conditions, is recognized as the contract performance cost as
an asset:
① This cost is directly related to a current or expected acquired contract, including direct labor, direct materials,
manufacturing costs (or similar costs), costs clearly borne by the Customer, and other costs incurred only because of
the Contract;
② This cost increases the future resources of the enterprise to fulfill its performance obligations;
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
③ This cost is expected to be recoverable.
(2) Amortization of assets related to the contract costs
Assets related to the contract cost are amortized on the same basis as the recognition of the asset and recorded into
the current profit and loss.
(3) Impairment of assets relating to the contract costs
When determining the impairment of assets related to the contract cost, firstly determine the impairment loss of other
assets recognized in accordance with other relevant business accounting standards; Then, if the book value is higher
than the difference of Item ① minus Item ②, the excess part shall be deducted and recognized as the asset
impairment loss:
① The remaining consideration expected to obtain due to the transfer of the goods related to the asset;
② Estimated estimated for the transfer of the related goods.
During the period before the impairment factors after changes, make the enterprise after the item ① minus the ② of
the difference higher than the asset book value, back to the original asset impairment provision, and included in the
current profits and losses, but the book value of the assets should not exceed the assumed not provision for
impairment of the assets in the book value.
(1) A lease is a contract in which the Company has transferred or acquired the right to control one or more use of
identified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract,
the Company evaluates whether the contract is a lease or contains a lease.
(2) Judgment basis of government subsidies and accounting treatment methods related to assets
The government subsidies related to assets refers to the government subsidies obtained by the Company for purchase
and construction or otherwise forming long-term assets.
Government subsidies related to assets shall be recognized as deferred income. Where government subsidies related to
assets are recognized as deferred income, they shall be recorded into profits and losses in reasonable and systematic
ways within the service life of the relevant assets. The government subsidies measured in accordance with the nominal
amount shall be directly recorded into the current profit and loss.
If the relevant assets are sold, transferred, scrapped or damaged before the end of their service life, the undistributed
balance of the relevant deferred income shall be transferred into the profit and loss of the current period of asset
disposal.
The government subsidies related to the daily activities of the Company shall be included in other profits according to
the essence of the economic business. The government subsidies unrelated to the daily activities of the Company shall
be included in the non-operating income and expenditure.
(3) The judgment basis and accounting treatment method of government subsidies related to income
Revenue-related government subsidies refer to government subsidies other than those related to assets.
For the government subsidies of comprehensive projects, the Company needs to be decomposed into asset-related
parts and earnings-related parts for accounting treatment separately; if it is difficult to distinguish, it shall be classified
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
as government subsidies related to income.
If government subsidies related to earnings are used to compensate the related expenses or losses of the enterprise in
the future period, they shall be recognized as deferred income and included in the current profits and losses in the
related costs or losses in the period to compensate the related expenses or losses incurred by the enterprise, which
shall be directly recorded in the current profits and losses.
The government subsidies related to the daily activities of the Company shall be included in other profits according to
the essence of the economic business. The government subsidies unrelated to the daily activities of the Company shall
be included in the non-operating income and expenditure.
(4) The time of recognition of government subsidies
Where the government subsidies are monetary assets, they shall be measured at the amount received. The government
subsidy, measured according to the receivable amount, shall be confirmed at the end of the period by meeting the
relevant conditions of the financial support policy, if the government subsidy is non-monetary assets, the government
subsidy shall be confirmed according to the ownership risk and remuneration transfer of the non-monetary assets.
Where non-monetary assets shall be measured at fair value; if the fair value cannot be obtained reliably, they shall be
measured at nominal amount.
When the recognized government subsidies need to be returned, if there is a balance of relevant deferred income, the
book balance of relevant deferred income shall be written down, and the excess part shall be included into the current
profit and loss; if there is no relevant deferred income, it shall be directly recorded in the current profit and loss.
Income tax is accounted by the balance sheet debt method. On the balance sheet date, analyze and compare the book
value of assets and liabilities and their tax basis. If there is a difference between the two, recognize the deferred
income tax assets, deferred income tax liabilities and the corresponding deferred income tax expenses (or earnings).
On the basis of the calculation and determination of the current income tax (i. e., income tax payable for the current
period) and deferred income tax expenses (or income), the sum of the two is recognized as the income tax expenses
(or income) in the income statement, but excluding the income tax impact of transactions or matters directly included
in the owner's equity.
Review the book value of deferred income tax assets. If it is likely that insufficient taxable income amount may be
obtained to offset the benefits of the deferred income tax assets, the book value of the deferred income tax assets shall
be written down.
A lease is a contract in which the Company has transferred or acquired the right to control one or more use of
identified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract,
the Company evaluates whether the contract is a lease or contains a lease.
(1) The Company acts as lessee
The categories of leased assets of the Company are mainly office buildings and cold storage.
① Initial measurement
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
On the beginning date of the lease term, the Company shall recognize the right to use the lease assets as the use right
assets during the lease term, and recognize the present value of the outstanding lease payment as lease liabilities,
except for short-term lease and low-value asset lease. When calculating the present value of the lease payment, the
Company uses the lease interest rate as the discount rate; if the lease interest rate cannot be determined, the lessee
incremental borrowing rate shall be used as the discount rate.
② Follow-up measurement
If the company can reasonably determine the ownership of the leased assets at the time of the expiration of the lease
term, the depreciation shall be withdrawn within the remaining useful life of the leased assets. If it is impossible to
reasonably determine that the ownership of the lease asset can be acquired at the expiration of the lease term, the
depreciation shall be deducted within the shorter period of the lease term and the remaining service life of the leased
asset.
See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and impairment provision method
of the use assets.
For the lease liabilities, the Company shall calculate the interest expenses for each period during the lease term at the
fixed periodic interest rate, which is included in the current profit and loss or the relevant asset costs. Variable lease
payments not included in the measurement of lease liabilities are recorded into current profit and loss or related asset
costs upon actual occurrence.
After the start of the lease term, when the substantial fixed payment changes, the expected payable amount changes,
the index or ratio used to determine the lease payment changes, the purchase option, the renewal option, or the actual
exercise situation changes, the lease payment, and adjust the book value of the use assets accordingly. If the book
value of the use right assets has been reduced to zero, but the lease liabilities still need to be further reduced, the
remaining amount shall be included in the current profit and loss.
③ Short-term lease and low-value asset leasing
For short-term lease (in the lease start day lease not more than 12 months) and low value asset lease, the company to
simplify processing method, do not confirm the use of assets and lease liabilities, and during the lease period
according to the line method or other system reasonable lease payments into the relevant asset cost or current profit
and loss.
④ Lease obligation
On the beginning date of the lease term, the Company recognizes the present value of the outstanding lease payment
as a lease liability. When calculating the present value of the lease payment, the lease interest rate shall be used as the
discount rate. If the interest rate of the lease cannot be determined, the company's incremental borrowing rate shall be
used as the discount rate. The difference between the lease payment and its present value shall be regarded as the
unidentified financing fee, and the interest expense shall be recognized during the lease period at the discount rate of
the present value of the lease payment and included in the current profit and loss. Variable lease payments not
included in the measurement of lease liabilities shall be recorded into the current profit and loss upon actual
occurrence.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
After the commencement of the lease term, when the substantially fixed payment amount changes, the expected
payable amount changes, the index or ratio of the lease payment amount changes, the result of the assessment or the
change of the lease payment amount, if the book value of the asset has been reduced to zero, but the lease liabilities
still need to be further reduced, the remaining amount shall be included in the current profit and loss.
(2) The Company acts as lessor
On the commencement date of the lease, the Company divides the lease into financial lease and operating lease based
on the substance of the transaction. A finance lease is a lease that substantially transfers almost all of the risks and
rewards associated with the ownership of the leased assets. Operating lease refers to a lease other than a financial lease.
① Operating lease
The Company adopts the straight-line method to confirm the lease collection amount of the operating lease as the
rental income of each period during the lease term. Variable lease payments related to the operating lease and not
included in the lease collection amount shall be included in the current profit and loss upon actual occurrence.
② The Company’s revenue applicable to the lease standards
The Company’s property and other lease revenue: After entering into a lease contract with a client, the Company
charges lease fees based on the lease area and the contractual unit price to the lessee and bears any fixed costs (such as
staff salaries, maintenance costs, etc.). During the lease term, the fees are settled on a regular basis between the
Company and the client. The Company recognizes revenue based on the lease period.
③ Finance Lease
On the lease commencement date, the Group recognizes a lease receivable and derecognizes the underlying asset of
the finance lease.The lease receivable is measured initially at the net investment in the lease (the sum of the present
value of the unguaranteed residual value and the lease payments not yet received at the lease commencement date,
discounted using the interest rate implicit in the lease). Interest income is recognized over the lease term using the
fixed periodic interest rate method. Variable lease payments received by the Group that are not included in the
measurement of the net investment in the lease are recognized in profit or loss when incurred.
(1) Production safety expenditures
In November 2022, the Ministry of Finance and the Ministry of Emergency Management issued the Management
Measures for the Withdrawal and Utilization of Production Safety Expenditures in Enterprise (CZ [2022] No. 136),
and it was implemented on, and as of, the date of issue. At the same time, the Management Measures for the
Withdrawal and Utilization of Production Safety Expenditures in Enterprises (CQ [2012] No. 16) was superseded.
(2) Debt restructuring
When the Company participates in the debt restructuring as a creditor, and pays off the debt with assets or turns the
debt into equity instruments for debt restructuring, it shall be confirmed when the relevant assets meet its definition
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
and confirmation conditions. If the debt-offset assets are financial assets, see Note IV, 10 and financial instruments; if
the debt-offset assets are non-financial assets, the initial measured amount is the sum of the fair value of the waived
claims and other directly attributable costs. The difference between the fair value of the abandoned claim and the
book value shall be included in the current profit and loss. If the debt is restructured by means of modifying other
terms, the Company shall, according to the substantive modification of the contract, judge whether the original
creditor's right to terminate the confirmation, and confirm a new creditor's right according to the revised terms, or
recalculate the book balance of the creditor's right.
When the company participates in debt restructuring, debt restructuring with assets or converting debt into equity
instruments, terminate the relevant assets and the liquidated liabilities meet the conditions for termination of
confirmation, and measure the fair value of the equity instruments (according to the fair value of the liquidated debt
when the fair value cannot be estimated reliably). The difference between the book value of the paid debts and the
book value of the transferred assets (or the recognized amount of the equity instruments) shall be recorded in the
current profit and loss.
If the debt is restructured by modifying other terms, the Company shall, according to the substantive modification of
the contract, confirm a new debt in accordance with the revised terms, or recalculate the book balance of the debt.
For the exemption of the debt restructuring, the recognition can only be terminated if the Company no longer have
the current obligation to repay the debt restructuring.
(1) Important accounting policy changes
① The Company started to implement the No. 17 of the Accounting Standards for Business Enterprises
Interpretation “on the division between current and non-current liabilities” in 2024. The accounting policy change
has no effect on the Company’s financial statements.
② The Company started to implement the Interpretation of No. 17 of the Accounting Standards for Business
Enterprises Interpretation “on accounting treatment for sale and leaseback transactions” in 2024 and made
retrospective application to the sale and leaseback transactions conducted after January 1, 2021. The accounting policy
change has no effect on the Company’s financial statements.
③ The Company started to implement the No. 18 of the Accounting Standards for Business Enterprises
Interpretation “on accounting treatment for warranty-type quality assurance that does not belong to the individual
performance.” The warranty-type quality assurance that does not belong to the individual performance accrued by
the Company was originally recognized in “selling expenses.” In accordance with Article 2 of the No. 18 ASBE
Interpretation, it is now recognized in “cost of sales” and “other operating costs,” which is presented in the
“operating costs” in the income statement. The accounting policy change has no effect on the Company’s financial
statements.
(2) Changes in important accounting estimates
None.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
In the process of applying accounting policies, the company, due to the internal uncertainty of business activities,
needs to judge, estimate and assume the book value of the statement items that cannot be accurately measured. These
judgments, estimates and assumptions are based on the past history of the company's management and on considering
other relevant factors. These judgments, estimates and assumptions affect the reported amount of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities on the balance sheet date. However, the actual results of
the uncertainty of these estimates may differ from the current estimates of the Company's management, which in turn
results in a significant adjustment of the carrying amount of the assets or liabilities affected in the future.
The Company shall periodically review the aforementioned judgments, estimates and assumptions on the basis of the
change, the accounting estimates shall be confirmed in the current period; and the current period, the impact shall be
confirmed in the current period and the future period.
On the balance sheet date, the Company shall judge, estimate and assume the amount of the financial statement as
follows:
(1) Revenue recognition
As described in Note IV, 27 “Revenue”, the following significant accounting judgments and estimates are involved
in revenue recognition:
① Identifying contracts with customers;
② Estimating the collectibility of the consideration to which the Company is entitled in exchange for goods
transferred to customers;
③ Identifying performance obligations in contracts;
④ Estimating variable consideration in contracts and the amount for which cumulative revenue recognized is highly
probable not to be reversed significantly when the related uncertainty is eliminated;
⑤ Assessing whether a significant financing component exists in contracts;
⑥ Estimating the standalone selling prices of individual performance obligations in contracts;
⑦ Determining whether a performance obligation is satisfied over time or at a point in time.
The Company mainly makes judgments based on past experience and practice. Changes in these significant judgments
and estimates may affect the operating income, operating costs and profit or loss for the current or future periods of
the change, and may have a material impact.
(2) Significant accounting judgments and estimates related to leasing
① Identification of leases
When identifying whether a contract is a lease or includes a lease, the Company needs to evaluate whether an
identified asset exists, and the Client controls the right to use the asset for a certain period. In the appraisal, the nature
of the asset, the material replacement right, and whether the client is entitled to almost all the financial benefits arising
from using the asset during the period and to dominate the use of the asset are considered.
② Classification of leases
When the Company, as a lessor, classifies the lease into operating lease and financial lease. In the classification, the
management needs to make an analysis and judgment on whether all the risks and rewards related to the ownership of
the leased assets have been substantially transferred to the lessee.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
③ Lease obligation
When the Company is the lessee, the lease liabilities are initially measured at the present value of the lease payments
outstanding on the beginning date of the lease term. When measuring the present value of the lease payment, the
Company estimates the discount rate used and the lease term of the lease contract with a renewal option or
termination option. In evaluating the lease term, the Company considers all relevant facts and circumstances related to
the economic benefits of exercising the option, including the expected changes in the facts and circumstances between
the beginning of the lease term and the exercise date of the option. Different judgments and estimates may affect the
recognition of lease liabilities and tenure assets, and will affect the profits and losses of the subsequent period.
(3) Impairment of financial instruments
The Company uses the expected credit loss model to evaluate the impairment of financial instruments, and application
of the expected credit loss model requires the company to make significant judgments and estimates, and to consider
all reasonable and grounded information, including forward-looking information. When making such judgments and
estimates, the Company deduces the expected changes in the debtor's credit risk based on the historical repayment
data combined with economic policies, macroeconomic indicators, industry risks and other factors.
(4) Reserve for inventory depreciation
According to the inventory accounting policy, the company measures the lower cost and the net realizable value, and
sets aside the inventory depreciation provision for the cost that is higher than the net realizable value and the old and
unsalable inventory. The impairment of inventory to net realizable value is based on the sale of inventory and its net
realizable value. The appraisal of inventory impairment requires the management to make a judgment and estimate on
the basis of obtaining conclusive evidence and considering the purpose of holding the inventory and the impact of
matters after the balance sheet date. The difference between the actual result and the original estimate will affect the
withdrawal or reversal of the book value of the inventory and the inventory depreciation provision during the
estimated change period.
(5) Fair value of the financial instruments
For financial instruments that do not have an active trading market, the Company determines its fair value through
various valuation methods. These valuation methods include discounted cash flow model analysis, etc. At the
valuation, the Company estimates the future cash flow, credit risk, market volatility and correlation, and selects the
appropriate discount rate. These relevant assumptions are uncertain, and their changes can have an impact on the fair
value of the financial instruments.
(6) Long-term asset impairment provision
On the balance sheet date, the Company judged the possible impairment of non-current assets except the financial
assets. For the intangible assets with uncertain service life, in addition to the annual impairment test, the impairment
test is also conducted when there are signs of impairment. Other non-current assets other than financial assets shall be
tested for impairment when there is evidence that their book amount is not recoverable.
When the book value of an asset or asset group is higher than the recoverable amount, that is, the net value minus the
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
disposal expense and the present value of the expected future cash flow, the impairment has occurred.
The net fair value minus the disposal expense is determined by referring to the sales agreement price of a similar asset
in fair trading or the observable market price, minus the incremental cost that may be directly attributable to the
disposal of the asset.
When predicting the present value of future cash flows, it is necessary to make significant judgments on the output,
selling price, related operating costs and the discount rate used in calculating the present value. In estimating the
recoverable amount, the Company will use all relevant information available, including projections of production,
selling prices and associated operating costs based on reasonable and supportive assumptions.
(7) Provision for Goodwill Impairment
The Company tests goodwill for impairment at least annually. In testing goodwill for impairment, the present value of
estimated future cash flows of the relevant asset group or combination of asset groups including goodwill shall be
calculated. Estimates of future cash flows shall be made for such asset group or combination of asset groups, and a
pre-tax discount rate that appropriately reflects the time value of money and the risks specific to the assets shall be
determined.
If the management revises the gross profit margin used in calculating the future cash flows of the asset group or
combination of asset groups, and the revised gross profit margin is lower than the current one, additional provision
for goodwill impairment shall be made.
If the management revises the pre-tax discount rate applied to discounting cash flows, and the revised pre-tax
discount rate is higher than the current one, additional provision for goodwill impairment shall be made.
If the actual gross profit margin or pre-tax discount rate is higher or lower than management’s estimates, the
previously recognized goodwill impairment loss shall not be reversed.
(8) Depreciation and amortization
After considering the residual value of the investment real estate, fixed assets and intangible assets, the Company shall
make depreciation and amortization according to the straight-line method. The Company periodically reviews the
service life to determine the amount of depreciation and amortization expense that will be included in each reporting
period. The service life is determined by the Company based on past experience with similar assets and combined with
expected technical updates. If previous estimates have changed significantly, depreciation and amortization charges
will be adjusted in the future period.
(9) Development Expenditures
In determining the amount to be capitalized, the management of the Company is required to make assumptions in
respect of the estimated future cash flows of the assets, the applicable discount rate and the estimated beneficial
period.
(10) Deferred income tax assets
Within the limits of potentially sufficient taxable profits to offset losses, the Company recognizes deferred income tax
assets for all unused tax losses. This requires the management of the company to use a lot of judgment to estimate the
time and amount of future taxable profits, and combine the tax planning strategy to determine the amount of deferred
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
income tax assets that should be recognized.
(11) Income tax
In the normal business activities of the company, there are some uncertainties in the final tax treatment and
calculation of some transactions. Whether some items can be itemized before tax requires the examination and
approval of the competent tax authorities. If the final determination of these tax matters varies from the original
estimated amount, the difference will affect the current income tax and deferred income tax during the final
determination period.
(12) Internal retirement benefits and supplementary retirement benefits
The amount of the company's internal retirement benefits and supplementary retirement benefits expenses and
liabilities is determined according to various assumptions. These assumptions include the discount rate, the average
growth rate of medical expenses, the growth rate of subsidies for retired and retired personnel, and other factors.
Differences in actual results and assumptions will be immediately recognized and charged for the current year.
Although the management believes that reasonable assumptions have been adopted, the change in the actual
experience value and the assumptions will still affect the expenses and liabilities of the Company's internal retirement
benefits and supplementary retirement benefits.
(13) Provisions
The Company estimates and recognizes appropriate provisions for product quality warranties, expected contract losses,
liquidated damages for delayed delivery, etc., based on contractual terms, current knowledge and historical experience.
When such contingent events have resulted in a present obligation, and it is probable that the settlement of such
present obligation will result in an outflow of economic benefits from the Company, the Company recognizes
provisions for contingent events at the best estimate of the expenditure required to settle the relevant present
obligation. The recognition and measurement of provisions rely heavily on management’s judgment. In making such
judgments, the Company is required to evaluate factors relevant to these contingent events, including risks,
uncertainties and the time value of money.
Among others, the Company recognizes provisions for after-sales quality and maintenance commitments provided to
customers in connection with the sale, repair and retrofitting of sold products. Recent maintenance experience data of
the Company has been taken into account in recognizing provisions, although such recent experience may not reflect
future maintenance conditions. Any increase or decrease in this provision may affect the profit or loss of future years.
(14) Fair Value Measurement
Certain assets and liabilities of the Company are measured at fair value in the financial statements. The Board of
Directors of the Company has established a Valuation Committee (led by the Chief Financial Officer of the Company)
to determine appropriate valuation techniques and inputs for fair value measurement. In estimating the fair value of an
asset or liability, the Company uses available observable market data. If Level 1 inputs are not available, the Company
engages independent qualified third-party valuers to perform valuations. The Valuation Committee works closely with
qualified external valuers to determine appropriate valuation techniques and inputs for relevant models. The Chief
Financial Officer reports the findings of the Valuation Committee to the Board of Directors on a quarterly basis to
explain the causes of fluctuations in the fair value of relevant assets and liabilities. Information about the valuation
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
techniques and inputs used in determining the fair value of various assets and liabilities is disclosed in Note XII to
these financial statements.
The Company determines its operating segments based on internal organizational structure, management
requirements, and internal reporting systems, and identifies reportable segments on the basis of operating segments.
The financial information of each reportable segment, including revenue, cost of sales, total assets, and total liabilities,
is disclosed in the notes to the financial statements. If the Company is unable to disclose the total assets or total
liabilities of each reportable segment, the reasons shall be provided. An operating segment refers to a component of
the Company that meets all of the following conditions:
Ⅴ.Tax
Tax Taxation base Tax rate
VAT Output tax minus the deductible input tax 13%， 9%，6%， 5%， exempted
Urban maintenance & construction tax Circulation tax amount payable 7%
Business income taxes taxable income Exempted，25%， 20%， 8%
Explanation of enterprise income tax rate for tax entities with different rates
Name of tax entity Income tax rate
Shandong Zhonglu Oceanic Fisheries Co., LTD Pelagic fishing is exempted, the rest will be taxed at 25%
Shandong Zhonglu Haiyan Oceanic Fisheries Co., LTD exempted
AFRICA STAR FISHERIES LIMITED According to the local regulations of Ghana, the export part is taxed
at 8%, and the domestic part is taxed at 25%
HABITAT INTERNATIONAL CORPORATION exempted
LAIF FISHERIES CO.LTD 25%
ZHONG GHA FOODS COMP ANY LIMITED 25%
YAW ADDO FISHERIES COMPANY LIMTED According to the local regulations of Ghana, the export part is taxed
at 8%, and the domestic part is taxed at 25%
Shandong Zhonglu Aquatic Marine Co., LTD 20%
Shandong Zhonglu Oceanic Refrigeration Co., LTD The part of the aquatic product processing industry is exempted,
and other parts are 25%
Shandong Zhonglu Oceanic (Yantai) Food Co., LTD The part of the aquatic product processing industry is exempted,
and other parts are 25%
Zhonglu Oceanic (Qingdao) Industrial Investment and 25%
Development Co., LTD
Tax Preferences and Approval Documents
In accordance with Item 1 of Article 15 of the Provisional Regulations of the People’s Republic of China on Value-
Added Tax, Item 1 of Article 35 of the Implementation Rules of the Provisional Regulations of the People’s Republic
of China on Value-Added Tax, and the notice of the Ministry of Finance and the State Taxation Administration on
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
issuing the Notes to the Scope of Taxation for Agricultural Products through CSZ [1995] No. 52, the sales revenue of
the Company and its subsidiaries from long-range fishing falls within the scope of the aquaculture industry as defined
in the foregoing provisions, and hence, it is entitled to the value-added tax preference.
In accordance with the provisions of the Notice on the Comprehensive Roll-out of Business Tax to Value Added Tax
Transformation Pilot Program (No. 36 of 2016), the value-added tax is exempt for the direct or indirect international
freight forwarding services provided by taxpayers. Shandong Zhonglu Aquaculture Shipping Co., Ltd., a subsidiary of
the Company, is exempt from the value-added tax for the relevant sales revenue it has gained.
According to the enterprise income tax law of the People's Republic of China (the President of the People's Republic
of China order no. 63), the State Council of the People's Republic of China order no. 512, the implementation of the
law of the People's Republic of China, the Ministry of Finance, state administration of taxation on enjoy preferential
policies of enterprise income tax of agricultural products (try out) notice (tax [2008] no. 149), the Ministry of Finance,
the state administration of taxation on enjoy preferential enterprise income tax of agricultural products about the
scope of supplementary notice (Fiscal and Taxation [2011] No.26) and the relevant provisions of the Announcement
of the State Administration of Taxation on the Implementation of Preferential Enterprise Income Tax Treatment for
Agriculture, Forestry, Animal Husbandry and Fishery Projects (Announcement of the State Administration of
Taxation No.48,2011), The company carries out the primary processing of agricultural products and the entrusted
primary processing of agricultural products, The processing fees it charges, Can be handled according to the duty-free
items of the primary processing of agricultural products. The company engaged in ocean fishing business and primary
processing of agricultural products income is exempted from enterprise income tax. The income obtained from the
company except ocean fishing and primary processing of agricultural products shall be paid at the rate of 25%.
According to the announcement of the Ministry of Finance and the State Administration of Taxation on further
implementing the preferential income tax policies for small and micro enterprises (Announcement No. 13 of 2022 of
the Ministry of Finance and the State Administration of Taxation) and the announcement on the preferential income
tax policies for small and micro enterprises and individual industrial and commercial households (Announcement No.
not exceeding 3 million yuan shall be included in the taxable income at a reduced rate of 25%, and the taxable income
shall be included at 20% .The subsidiary Shandong Zhonglu Aquatic Products Shipping Co., Ltd. shall apply the tax
preference.
Ⅵ. Notes to the key items in the consolidated financial statements
(The following items (including the main items in the financial statements of the parent Company) Unless specifically
noted, "beginning" means January 1,2025, "end" means December 31,2025, "previous end" means December 31,2024,
"Current" means 2025, and "previous" means 2024.）
Item Ending Balance Initial Balance
Cash on hand 615,541.90 1,510,503.38
Cash at bank 283,690,747.60 247,926,760.02
Other monetary funds 28,789,884.20 10,038,933.10
Total 313,096,173.70 259,476,196.50
Including: the total balance deposited overseas 141,966,335.85 104,529,095.33
The total amount of funds that have restrictions on use 28,789,884.20 10,038,933.10
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Ending Balance Initial Balance
due to mortgages, pledges, or freezes
Note: Overseas deposits are cash and bank deposits of foreign subsidiaries; other monetary funds are paper margin.
Notes receivable that have been endorsed or discounted by our company at the end of the period and have not yet matured on the
balance sheet date.
Item Ending Balance Initial Balance
Bank acceptance bills 10,177,175.00
total 10,177,175.00
(1) Accounts receivable by aging
Aging Ending book balance Opening book balance
Within 6 months 78,934,032.24 51,093,265.85
More than 3 years 6,501,141.07 6,525,704.44
Total 89,147,260.86 60,138,267.67
(2) Accounts receivable by provision method for allowance credit losses
Item Ending Balance
Book Balance PCT (%) Allowance for PCT Carrying amount
credit losses
Individually assessment subject to - - - - -
allowance for credit losses
Grouping assessment subject to 89,147,260.86 100.00% 11,173,546.24 12.53% 77,973,714.62
allowance for credit losses
Total 89,147,260.86 100.00% 11,173,546.24 12.53% 77,973,714.62
(Continued)
Item Initial Balance
Book Balance PCT Allowance for PCT Carrying amount
credit losses
Individually assessment subject to - - - - -
allowance for credit losses
Grouping assessment subject to 60,138,267.67 100.00% 9,616,250.39 15.99% 50,522,017.28
allowance for credit losses
Total 60,138,267.67 100.00% 9,616,250.39 15.99% 50,522,017.28
Accounts receivable that are assessed allowance for credit losses on grouping basis
Item Ending Balance
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Balance Allowance for PCT
credit losses
Within 6 months 78,934,032.24 3,946,701.63 5.00%
More than 3 years 6,501,141.07 6,501,141.07 100.00%
Total 89,147,260.86 11,173,546.24
(Continued)
Item Initial Balance
Balance Allowance for PCT
credit losses
Within 6 months 51,093,265.85 2,554,663.34 5.00%
More than 3 years 6,525,704.44 6,525,704.44 100.00%
Total 60,138,267.67 9,616,250.39
(3) Allowance for credit losses
Item Initial Balance Amount of change in the current period Ending Balance
Provision Recovery or Write off Exchange impact
reversal
Grouping 9,616,250.39 1,673,403.38 84,106.16 32,001.37 11,173,546.24
assessment
subject to
allowance for
credit losses
Total 9,616,250.39 1,673,403.38 84,106.16 32,001.37 11,173,546.24
(4) Accounts receivable due from the top five debtors of the Company are as follows:
Company name Ending balance of Ending Ending balance Proportion of the Ending balance of
accounts balance of of accounts total amount allowance for doubtful
receivable contract assets receivable and accounts
contract assets
A 13,908,773.10 13,908,773.10 15.60% 695,438.66
B 9,528,274.88 9,528,274.88 10.69% 476,413.74
C 8,289,160.64 8,289,160.64 9.30% 414,458.03
D 4,739,719.00 4,739,719.00 5.32% 236,985.95
E 3,647,244.32 3,647,244.32 4.09% 182,362.22
Total 40,113,171.94 40,113,171.94 45.00% 2,005,658.60
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(1) Aging analysis of prepayments
Aging Ending Balance Initial Balance
Balance PCT Balance PCT
Within 1 year 17,319,421.36 98.27% 27,825,036.62 98.29%
More than 3 years 2.81 0.00%
Total 17,625,072.87 100.00% 28,310,211.38 100.00%
(2) The top five prepayments are as follows
Company name Relationship with Ending balance Proportion of Advance Reason for the
the company total amount payment time failure of
settlement
SOUTHERN SEAS LOGISTIC unrelated party 6,853,080.00 38.88% 2025Annual Unfinished
LIMITED amortization
PARTIES TO THE NAURU unrelated party 2,446,022.40 13.88% 2025Annual Unfinished
AGREEMENT amortization
China Overseas Fisheries Association unrelated party 2,086,084.08 11.84% 2025Annual Unfinished
amortization
Weihai Huanhai Aquatic Products Co., unrelated party 1,374,518.10 7.80% 2025Annual Billing period not
Ltd. yet reached
KH Shipping unrelated party 1,333,845.82 7.57% 2025Annual Billing period not
yet reached
Total 14,093,550.40 79.96%
Item Ending Balance Initial Balance
Interest receivable - -
Dividends receivable - -
Other receivables 105,905,380.86 71,692,831.62
Total 105,905,380.86 71,692,831.62
Other receivables
① Aging of other receivables
Aging Ending book balance Opening book balance
Within 6 months 70,798,681.01 71,753,653.34
More than 3 years 4,702,363.09 4,625,144.91
Total 130,636,333.59 80,704,840.73
② Category of other receivables by nature
Nature Ending book balance Opening book balance
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Nature Ending book balance Opening book balance
Guarantee deposit 2,085,454.62 1,915,306.49
Current account and others 128,550,878.97 78,789,534.24
Total 130,636,333.59 80,704,840.73
③ Classified disclosure by bad debt provision method
category Ending Balance
Book balance proportion Bad debt Provision ratio book value
provision
Provision for bad debts based on
individual items
Provision for bad debts by 130,636,333.59 100.00% 24,730,952.73 11.17% 105,905,380.86
combination
Total 130,636,333.59 100.00% 24,730,952.73 11.17% 105,905,380.86
(Continued)
category Initial Balance
Book balance proportion Bad debt Provision ratio book value
provision
Provision for bad debts based on
individual items
Provision for bad debts by 80,704,840.73 100.00% 9,012,009.11 11.17% 71,692,831.62
combination
total 80,704,840.73 100.00% 9,012,009.11 11.17% 71,692,831.62
Combination provision item: aging combination
Aging of accounts Ending Balance
Book balance Bad debt Provision ratio
provision
Within 6 months 70,798,681.01 3,539,934.05 5.00%
More than 3 years 4,702,363.09 4,702,363.09 100.00%
Total 130,636,333.59 24,730,952.73
(Continued)
Aging of accounts Initial Balance
Book balance Bad debt Provision ratio
provision
Within 6 months 71,753,653.34 3,587,682.65 5.00%
More than 3 years 4,625,144.91 4,625,144.91 100.00%
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Aging of accounts Initial Balance
Book balance Bad debt Provision ratio
provision
Total 80,704,840.73 9,012,009.11
④ Provision for bad debt (provision for bad debt under the general expected credit loss model)
The allowance for credit losses Stage one Stage two Stage three Total
(credit- (credit-impaired)
unimpaired)
Beginning balance 4,386,864.20 4,625,144.91 9,012,009.11
Revaluation of beginning balance 4,386,864.20 4,625,144.91 9,012,009.11
Provision 15,662,852.11 77,218.18 15,740,070.29
Reversal
Charge-off
Write-off 3,358.41 3,358.41
Exchange impact 17,768.26 17,768.26
Total 20,028,589.64 4,702,363.09 24,730,952.73
⑤ Allowance for credit losses
Item Initial Balance Amount of change in the current period Ending Balance
Provision Recovery or Write off Exchange impact
reversal
Allowance for 9,012,009.11 15,740,070.29 3,358.41 17,768.26 24,730,952.73
credit losses of
other receivables
Total 9,012,009.11 15,740,070.29 3,358.41 17,768.26 24,730,952.73
⑥ Write-off of other receivables during the period
Item Write-off amount
Write-off of other receivables 3,358.41
⑦ Other receivables due from the top five debtors are as follows:
Company name Nature of the fund Ending balance Aging Proportion in the Ending balance of
t total amount allowance for
doubtful accounts
Qingdao Laoshan District Bureau of Government 107,287,931.00 Within 6 82.13% 18,200,796.80
Agriculture and Rural Affairs grants months;1-2 years
Shandong State-owned Assets Custody fee 1,800,000.00 Within 6 months 1.38% 90,000.00
Investment Holdings Co., Ltd.
MRL LIMITED. Deposit 1,054,320.00 1-2 years 0.81% 316,296.00
Zhicheng Zhang Claims payment 973,052.92 0-3 years 0.74% 249,630.70
on behalf
China Shipowners Mutual Assurance Medical expenses 278,918.18 2-3 years 0.21% 139,459.09
Association
Total 111,394,222.10 85.27% 18,996,182.59
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(1) Inventories by categories
Item Ending Balance Initial Balance
Book balance Provision for Carrying amount Book balance Provision for Carrying amount
diminution in diminution in
value or value or
impairment impairment
provision for costs provision for costs
to fulfil contracts to fulfil contracts
Raw materials 188,879,786.63 5,166,031.66 183,713,754.97 155,978,130.93 5,407,142.40 150,570,988.53
Low-value 139,185.77 139,185.77 256,408.88 256,408.88
consumables
Commodities 212,748,925.25 21,737,464.61 191,011,460.64 353,097,476.86 55,671,479.56 297,425,997.30
Revolving materials 1,256,319.95 1,256,319.95 1,208,814.93 1,208,814.93
Costs to fulfil 5,785,199.65 5,785,199.65 968,942.64 968,942.64
contracts
Total 408,809,417.25 26,903,496.27 381,905,920.98 511,509,774.24 61,078,621.96 450,431,152.28
(2) Provision for diminution in value of inventories and impairment of costs to fulfil contracts
Item Initial Balance Additions during the year Reductions during the year Ending Balance
Provision Other Reversal or write- Exchange impact
down
Raw materials 5,407,142.40 4,292,415.41 4,533,526.15 5,166,031.66
Commodities 55,671,479.56 18,615,454.28 52,546,492.35 2,976.88 21,737,464.61
Total 61,078,621.96 22,907,869.69 57,080,018.50 2,976.88 26,903,496.27
Item Ending Balance Initial Balance
Input tax to be deducted 27,973,475.15 21,609,942.76
Prepaid income tax 167,437.36 190,608.32
Prepaid other taxes 11,530.75 12,358.01
Total 28,152,443.26 21,812,909.09
Item Initial Balance Change in the current year
Additional Reduce Investment Other Other
investment investment gains and losse comprehensive changes in
income equity
Ji Nan Qin Zhen Food 878,622.04 -436,729.96
Technology Co., Ltd.
Total 878,622.04 -436,729.96
(Continued)
Item Change in the current year Ending Balance Impairment
Declare a cash Provision for Other reserve ending
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
dividend or impairment balance
profit
Ji Nan Qin Zhen Food Technology Co., Ltd. 441,892.08
Total 441,892.08
Investment property measured by cost
Item Buildings Total
① Cost
Initial Balance 51,308,578.35 51,308,578.35
Additions - -
Reductions - -
Ending Balance 51,308,578.35 51,308,578.35
② Accumulated depreciation or amortization -
Initial Balance 24,291,363.58 24,291,363.58
Additions 1,326,076.68 1,326,076.68
Including: Depreciation or amortization 1,326,076.68 1,326,076.68
Reductions - -
Including: Disposition -
Ending Balance 25,617,440.26 25,617,440.26
③ Provision for impairment -
Initial Balance 886,512.06 886,512.06
Additions -
Reductions -
Ending Balance 886,512.06 886,512.06
④ Carrying amount -
Ending Balance 24,804,626.03 24,804,626.03
Initial Balance 26,130,702.71 26,130,702.71
Category Ending Balance Initial Balance
Fixed assets 927,820,225.94 999,486,042.10
Disposal of fixed assets
Total 927,820,225.94 999,486,042.10
① Movement of fixed assets
Item Buildings Boats & nets Machinery & Transportation Furniture and Total
equipment vehicles office equipment
Cost
Initial Balance 196,082,626.62 1,251,794,445.80 65,333,861.41 10,730,195.55 12,475,370.05 1,536,416,499.43
Additions -25,137.00 12,499,663.87 1,855,428.41 38,055.58 125,795.81 14,493,806.67
Including: Purchase - 20,610,636.71 1,861,569.21 164,238.93 144,716.30 22,781,161.15
Transfer from construction in - 3,883,906.72 - - - 3,883,906.72
process
Impact of exchange rate -25,137.00 -11,994,879.56 -6,140.80 -126,183.35 -18,920.49 -12,171,261.20
fluctuations
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Buildings Boats & nets Machinery & Transportation Furniture and Total
equipment vehicles office equipment
Reductions - 28,837,894.96 305,102.24 190,173.79 374,372.00 29,707,542.99
Including: Disposals or scrap - 28,837,894.96 305,102.24 190,173.79 374,372.00 29,707,542.99
Impact of exchange rate -
fluctuations
Ending Balance 196,057,489.62 1,235,456,214.71 66,884,187.58 10,578,077.34 12,226,793.86 1,521,202,763.11
Accumulated depreciation
Initial Balance 62,256,380.15 416,302,597.55 39,249,566.27 8,776,387.70 10,187,952.16 536,772,883.83
Additions 5,707,916.70 73,684,631.21 3,152,058.74 286,748.89 497,351.79 83,328,707.33
Including: Provision 5,715,925.16 79,424,492.56 3,155,311.85 387,607.10 512,416.55 89,195,753.22
Impact of exchange rate fluctuations -8,008.46 -5,739,861.35 -3,253.11 -100,858.21 -15,064.76 -5,867,045.89
Reductions - 26,092,638.76 274,592.02 171,156.41 338,240.30 26,876,627.49
Including: Disposals or scrap - 26,092,638.76 274,592.02 171,156.41 338,240.30 26,876,627.49
Impact of exchange rate -
fluctuations
Ending Balance 67,964,296.85 463,894,590.00 42,127,032.99 8,891,980.18 10,347,063.65 593,224,963.67
Provision for impairment -
Initial Balance - 157,573.50 - - - 157,573.50
Additions -
Reductions -
Ending Balance - 157,573.50 - - - 157,573.50
Carrying amount -
Ending Balance 128,093,192.77 771,404,051.21 24,757,154.59 1,686,097.16 1,879,730.21 927,820,225.94
Initial Balance 133,826,246.47 835,334,274.75 26,084,295.14 1,953,807.85 2,287,417.89 999,486,042.10
② Temporarily idle fixed assets
Item Cost Accumulated Provision for Carrying amount Remark
depreciation impairment
Machinery & equipment 2,179,020.00 1,961,118.00 - 217,902.00
Netting gear 45,999,481.94 31,950,350.22 - 14,049,131.72
Total 48,178,501.94 33,911,468.22 - 14,267,033.72
③ Fixed assets with incomplete property rights certificates
According to the Debt Repayment Opinion signed between our company and Shandong Fisheries Group Corporation
in April 2006, as well as the Civil Ruling (2005) Lizhi Zi No. 1299 issued by the People's Court of Lixia District, Jinan
City, Shandong Fisheries Group Corporation will offset the debt owed to Shandong Zhonglu Yuanyang Fisheries Co.,
Ltd. by its office complex building and office supplies located at 43 Heping Road, Lixia District, Jinan City. The
original book value of the office complex building is 54,223,132.40 yuan, with a book value of 25,975,700.31 yuan (of
which the self use part is included in fixed assets and the rental part is included in investment real estate). The land
used for this property was originally allocated land, and the property ownership certificate is for the property. Not yet
processed。
Category Ending Balance Initial Balance
Constructed in process 205,135,249.27 118,015,048.57
Construction materials
Total 205,135,249.27 118,015,048.57
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
① Construction in process
Item Ending Balance Initial Balance
Book balance Provision for Carrying amount Book balance Provision for Carrying amount
impairment impairment
Atlantic Siege Project 4,077,658.55 4,077,658.55 - 4,077,658.55 4,077,658.55 -
The Marine Innovation 205,050,797.71 - 205,050,797.71 118,015,048.57 - 118,015,048.57
Industrial Park Project
Reefer vessel 84,451.56 - 84,451.56
total 209,212,907.82 4,077,658.55 205,135,249.27 122,092,707.12 4,077,658.55 118,015,048.57
② Movement of significant construction in progress
Project name Budget Initial Balance Additions Transfer to fixed Other Ending Balance
assets reductions
Tuna Trading Center 51,000,000.00 33,688,542.86 3,850,989.53 37,539,532.39
Gatekeepers of Cold Storage 5 174,010,000.00 69,042,410.12 78,587,152.71 147,629,562.83
and Cold Storage 3
Total 225,010,000.00 102,730,952.98 82,438,142.24 0.00 0.00 185,169,095.22
(Continued)
Project name Proportion of Project progress Interest capitalization Where: the Current Source of funds
cumulative accumulated amount amount of interest
project input to interest capitalization
budget capitalization in rate
the current
period
Tuna Trading Center 73.61% 65.17% 4,208,043.60 1,316,955.48 3.50% Long term loans
and own funds
Gatekeepers of Cold Storage 5 84.84% 76.00% 7,960,687.60 3,750,284.74 3.17% Long term loans
and Cold Storage 3 and own funds
Total 12,168,731.20 5,067,240.22 -
Item Buildings Total
（1）Cost
Initial Balance 498,364.44 498,364.44
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Buildings Total
Additions
Including: New leases
Impact of exchange rate fluctuations
Reductions 498,364.44 498,364.44
Including: Exchange impact 498,364.44 498,364.44
Impact of exchange rate fluctuations
Ending Balance
（2）Accumulated depreciation
Initial Balance 498,364.44 498,364.44
Additions
Including: Provision
Impact of exchange rate fluctuations
Reductions 498,364.44 498,364.44
Including: Exchange impact 498,364.44 498,364.44
Impact of exchange rate fluctuations
Ending Balance
Provision for impairment
Initial Balance
Additions
Reductions
Ending Balance
Carrying amount
Ending Balance
Initial Balance
Item Land use rights Computer software Total
①Cost
Initial Balance 69,409,842.26 2,335,115.89 71,744,958.15
Additions
Including: Purchase
Reductions
Including: Disposition
Ending Balance 69,409,842.26 2,335,115.89 71,744,958.15
②Accumulated depreciation -
Initial Balance 10,278,432.52 2,064,499.56 12,342,932.08
Additions 1,428,972.84 63,530.97 1,492,503.81
Including: Provision 1,428,972.84 63,530.97 1,492,503.81
Reductions
Including: Disposition
Ending Balance 11,707,405.36 2,128,030.53 13,835,435.89
③Provision for impairment
Initial Balance
Additions
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Including: Provision
Reductions
Including: Disposition
Ending Balance
④Carrying amount
Ending Balance 57,702,436.90 207,085.36 57,909,522.26
Initial Balance 59,131,409.74 270,616.33 59,402,026.07
Item Initial Balance Additions Amortization Reductions Ending Balance
Office building decoration 1,784,037.79 679,675.63 256,903.04 2,206,810.38
Decoration of Tuna Technology 859,789.68 491,308.44 368,481.24
Museum
total 2,643,827.47 679,675.63 748,211.48 2,575,291.62
(1) Deferred tax assets before offsetting
Item Ending Balance Initial Balance
Deductible Deferred tax Deductible Deferred tax
temporary assets temporary assets
differences differences
Allowance for credit losses 1,156,930.27 235,661.23 986,375.92 201,474.13
Deferred income 4,011,354.26 1,002,838.57 4,640,134.32 1,160,033.58
Total 5,168,284.53 1,238,499.80 5,626,510.24 1,361,507.71
(2) Deferred tax liabilities before offsetting
Item Ending Balance Initial Balance
Taxable Deferred tax Taxable temporary Deferred tax
temporary liabilities differences liabilities
differences
Accelerated depreciation of fixed assets before tax 8,704,373.77 2,176,093.44 9,305,898.14 2,326,474.54
deduction
total 8,704,373.77 2,176,093.44 9,305,898.14 2,326,474.54
(3) The items not recognised deferred tax assets
Item Ending Balance Initial Balance
Deductible temporary differences -Allowance for credit losses 34,747,568.70 17,641,883.58
Deductible temporary differences -Provision for inventories 26,903,496.27 61,078,621.96
Deductible temporary differences -Deductible losses 37,197,760.25
Deductible temporary differences -Provision for impairment of 4,077,658.55 4,077,658.55
construction in progress
Total 65,728,723.52 119,995,924.34
Note: No deferred income tax assets are recognized for deductible temporary differences, due to the exemption of
corporate income tax for those companies that form deductible temporary differences. There is uncertainty about
whether some companies will be able to generate sufficient taxable income in the future.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(4) The deductible losses of unconfirmed deferred income tax assets will expire in the following years
Year Ending Balance Initial Balance Remarks
year 2025 37,197,760.25
total 37,197,760.25
Item Ending Balance Initial Balance
Book Provision for Carrying amount Book balance Provision for Carrying
balance impairment impairment amount
Prepayment for 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
land
Prepayment for 21,629,081.65 21,629,081.65 14,807,420.94 14,807,420.94
construction in
process
Total 23,629,081.65 23,629,081.65 16,807,420.94 16,807,420.94
Item Ending Balance
Book balance Book value Restricted type Restricted case
Monetary funds 28,789,884.20 28,789,884.20 Bill deposit；
Guarantee bond
deposit
Fixed assets 473,692,267.44 432,974,053.41 Mortgage for loan
Construction in Progress 194,062,840.63 194,062,840.63 Mortgage for loan
Intangible Assets 52,255,113.26 48,074,703.98 Mortgage for loan
Total 748,800,105.53 703,901,482.22
（continue）
Item Initial Balance
Book balance Book value Restricted type Restricted case
Monetary funds 10,038,933.10 10,038,933.10 Bill deposit；
Guarantee bond
deposit
Fixed assets 444,910,737.16 420,418,444.51 Mortgage for loan
Total 454,949,670.26 430,457,377.61
Item Ending Balance Initial Balance
Collateral loan
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Ending Balance Initial Balance
Loans on credit 16,022,933.34 46,013,200.00
Total 16,022,933.34 46,013,200.00
Note: The loan balance of the current period includes the interest payable of RMB 22,933.34;
Item Ending Balance Initial Balance
Banker's acceptance 56,979,768.40 20,853,039.00
total 56,979,768.40 20,853,039.00
Item Ending Balance Initial Balance
Within 1 year(including 1 year) 77,509,149.94 140,710,875.88
More than 1 year 5,034,531.48 8,600,722.88
Total 82,543,681.42 149,311,598.76
Item Ending Balance Initial Balance
Rent 1,201,097.79 1,539,814.03
Total 1,201,097.79 1,539,814.03
Item Ending Balance Initial Balance
Advance payment for goods 8,866,554.08 15,557,313.74
Total 8,866,554.08 15,557,313.74
(1) Movement of employee benefits payable
Item Initial Balance Increase Decrease Ending Balance
Short-term employee benefits 64,214,191.17 211,198,773.56 199,987,915.90 75,425,048.83
Post-employment benefits—defined contribution plans 1,773,522.92 13,776,595.58 13,851,385.17 1,698,733.33
Termination benefits 1,215,115.75 1,215,115.75
Other benefits due within one year 3,578.34 9,669.66 13,248.00
Total 65,991,292.43 226,200,154.55 215,067,664.82 77,123,782.16
(2) Details of the short-term employee benefits
Item Initial Balance Accrued Paid Ending Balance
Salaries, bonus, and allowances 62,642,483.72 196,280,622.20 185,164,413.97 73,758,691.95
Staff welfare 2,926,749.74 2,926,749.74 -
Social insurances 5,758,287.85 5,758,287.85 -
Including: Medical insurance 5,177,751.80 5,177,751.80 -
Work injury insurance 580,536.05 580,536.05 -
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Initial Balance Accrued Paid Ending Balance
Maternity insurance -
Housing Fund 5,102,426.81 5,102,426.81 -
Union funds and employee education fee 1,571,707.45 1,130,686.96 1,036,037.53 1,666,356.88
Short-term paid absences -
Short-term profit sharing plan -
Total 64,214,191.17 211,198,773.56 199,987,915.90 75,425,048.83
(3) Defined contribution plans
Item Initial Balance Accrued Paid Ending Balance
Primary endowment insurance - 10,337,519.24 10,337,519.24 -
Unemployment insurance - 443,348.75 443,348.75 -
Pension insurance 1,769,560.92 2,659,995.92 2,734,785.51 1,694,771.33
Social security and subsidies for retired workers 3,962.00 335,731.67 335,731.67 3,962.00
Total 1,773,522.92 13,776,595.58 13,851,385.17 1,698,733.33
Category Ending Balance Initial Balance
Value added tax 313,943.05 345,360.75
Enterprise income tax 1,132,290.71 1,707,735.60
Urban maintenance and construction tax 17,069.51 16,740.44
Estate tax 376,654.33 337,797.58
Land use tax 323,569.87 323,569.87
Individual income tax 724,602.15 555,560.15
Educational surtax 12,192.49 11,957.43
Withholding tax 5,617,389.27 2,875,953.23
Other taxes and surcharges 186,488.03 145,857.04
Total 8,704,199.41 6,320,532.09
Item Ending Balance Initial Balance
Interest payable
Dividends payable 5,234,835.31 3,311,799.62
Other payables 19,337,100.36 20,581,093.98
Total 24,571,935.67 23,892,893.60
(1) Dividends payable
Item Ending Balance Initial Balance Reasons for non-payment for more
than 1 year
Common stock dividend 5,234,835.31 3,311,799.62
Total 5,234,835.31 3,311,799.62
(2) Other payables
① Other payables by nature of payment
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Ending Balance Initial Balance
Security deposit 5,518,240.83 5,357,745.00
Staff expenses 912,274.58 1,230,770.73
Safety cost 1,708,525.48 2,415,927.69
other 11,198,059.47 11,576,650.56
Total 19,337,100.36 20,581,093.98
② Material other payables with aging over 1 year
Company Name Nature of Payment Ending Balance Aging Percentage of Total Other
Payables at End of Period
Qingdao Kaize Construction Deposit 5,000,000.00 3–4 years 25.86%
Engineering Management Co., Ltd.
Total 5,000,000.00 25.86%
Item Ending Balance Initial Balance
Long-term loans due within one year 16,679,833.33 14,879,833.33
Total 16,679,833.33 14,879,833.33
Item Ending Balance Initial Balance
Advance collection of sales tax 19,248.74 51,536.97
Total 19,248.74 51,536.97
Long-term loans by category
Item Ending Balance Initial Balance
Secured loan 191,985,241.69 114,210,091.81
Mortgage or guarantee a loan 286,074,007.87 281,323,150.54
Less: long-term loans maturing within one year 16,679,833.33 14,879,833.33
Total 461,379,416.23 380,653,409.02
Note 1: The guarantors for the guaranteed loans are respectively Shandong Zhonglu Haiyan Ocean Fishery Co., Ltd., Shandong Zhonglu
Ocean (Yantai) Food Co., Ltd. and Shandong Zhonglu Ocean Fishery Co., Ltd.
Note 2: Mortgage and collateral include purse seine vessels Tailong 7 and Tailong 9 with a book value of RMB 344,578,891.06; the
properties of Room 2501-2506, Building 1, No.31 Xianxialing Road, Laoshan District, with real estate ownership certificate numbers: Lu
Qing Yuan Yu 367 and Luqing Yuanyu 368,with a book value of RMB 26,389,065.38; construction in progress of Zhonglu Marine
Innovation Industrial Park Project with a book value of RMB 194,062,840.63; land use right owned by Zhonglu Ocean (Qingdao)
Industrial Investment & Development Co., Ltd., with real estate ownership certificate No. Lu 2022 Jiaozhou BDCQ No. 0000267, book
value of RMB 48,074,703.98. The guarantors are Shandong Zhonglu Haiyan Ocean Fishery Co., Ltd. and Shandong Zhonglu Ocean
(Yantai) Food Co., Ltd.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Ending Balance Initial Balance
Employee Benefits Payable 428,721.93 463,135.85
Other long-term benefits 63,931.96 71,839.89
Total 492,653.89 534,975.74
Item Initial Balance Increase Decrease Ending Balance Reason for the
deferred income
Government grants 53,576,277.76 2,170,000.00 2,633,323.85 53,112,953.91 asset-related
Total 53,576,277.76 2,170,000.00 2,633,323.85 53,112,953.91
Item Initial Balance Movement Ending Balance
Issuance of Bonus shares Capital reserve Others sub-total
new share transfer in
Total shares 266,071,320.00 266,071,320.00
Item Initial Balance Increase Decrease Ending Balance
Share premiums 189,093,492.79 189,093,492.79
Other capital reserve 106,526,779.23 106,526,779.23
Total 295,620,272.02 - - 295,620,272.02
Item Initial Balance (A) Year ended 31/12/2025
Amount before Less: OCI in prior Less: OCI in prior
tax periods transfer in periods carried
profit or loss for forward to
the current period retained earnings
OCI items which will be reclassified subsequently to profit -313,223.04 -7,557,287.86
or loss
Translation differences from translation of foreign -313,223.04 -7,557,287.86
currency financial statements
Total of OCI -313,223.04 -7,557,287.86
(Continued)
Item Year ended 31/12/2025 Ending Balance
Less: income tax Amount after tax Amount after tax (C)=(A)+(B
attributable to the attributable to
Company(B) minority interests
OCI items which will be reclassified subsequently to profit - -6,016,522.32 -1,540,765.54 -6,329,745.36
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
or loss
Translation differences from translation of foreign -6,016,522.32 -1,540,765.54 -6,329,745.36
currency financial statements
Total of OCI - -6,016,522.32 -1,540,765.54 -6,329,745.36
Item Initial Balance Increase Decrease Ending Balance
Safety costs - 1,772,796.32 1,753,757.48 19,038.84
Total - 1,772,796.32 1,753,757.48 19,038.84
Item Initial Balance Increase Decrease Ending Balance
Statutory surplus reserve 21,908,064.19 21,908,064.19
Total 21,908,064.19 - - 21,908,064.19
Item Year ended 31/12/2025 Year ended 31/12/2024
Retained earnings As at 31/12/2024before adjustment 483,904,313.48 449,363,748.93
The total adjustment of retained earnings As at 1/1/2025 (Increase+, decrease-)
Retained earnings As at 1/1/2025 after adjustment 483,904,313.48 449,363,748.93
Add: Net profit attributable to the Company during the year 33,472,952.45 34,540,564.55
Less: Appropriation of statutory surplus reserve
Withdrawal of discretionary surplus reserve
Extract general risk provision
Common stock dividends payable
Common stock dividends converted to share capital
Retained earnings as at 31/12/2025 517,377,265.93 483,904,313.48
(1) Operating income and operating costs
Item Year ended 31/12/2025 Year ended 31/12/2024
Income Costs Income Costs
Primary operating business 1,475,811,120.90 1,355,798,503.23 1,373,652,687.28 1,266,523,354.64
Other operating business 10,881,588.76 2,356,533.15 11,007,578.68 3,277,047.87
Total 1,486,692,709.66 1,358,155,036.38 1,384,660,265.96 1,269,800,402.51
(2) Status of income from contracts
① Revenue applicable to the Company’s product sales, contract processing, cold storage, and other business
Item Product sales revenue Processing income Cold storage revenue
Operating income Operating cost Operating Operating cost Operating income Operating cost
income
Confirm at a certain 1,315,140,197.44 1,232,569,722.85 8,018,794.72 7,060,273.53
point
Confirm within a certain - - 13,309,171.88 10,844,471.43
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
period of time
Total 1,315,140,197.44 1,232,569,722.85 8,018,794.72 7,060,273.53 13,309,171.88 10,844,471.43
（Continue）
Item Refrigerated transportation revenue Other business income Total
Operating income Operating cost Operating Operating cost Operating income Operating cost
income
Confirm at a certain 4,950,776.23 417,960.11 1,328,109,768.39 1,240,047,956.49
point
Confirm within a certain 139,342,956.86 105,228,797.32 1,698,113.19 - 154,350,241.93 116,073,268.75
period of time
Total 139,342,956.86 105,228,797.32 6,648,889.42 417,960.11 1,482,460,010.32 1,356,121,225.24
② Income adapted to the lease standard
Item Rent Rental and others Total
Operating income Operating cost Operating income Operating cost
Income from main business - -
Other business income 4,232,699.34 1,938,573.04 4,232,699.34 1,938,573.04
Total 4,232,699.34 1,938,573.04 4,232,699.34 1,938,573.04
(3) Description of the performance obligations
The sale of goods by the Company is the performance obligation at a certain point, and the Company recognizes the
income when the control of the goods transfers; the processing service of the Company is the performance obligation
at a certain point, and the Company recognizes the income when the delivery delivers the products.
The cold storage fee income of the company belongs to the performance obligation within a certain period of time,
and the company recognizes the income based on the actual days of goods stored every month.
The refrigerated transportation services by the Company are the performance obligation over a period of time, and the
Company recognizes the income based on the service days confirmed by customers and the prices agreed in the
contract.
The company's housing and other rental income of the company belongs to the performance obligations performed
within a certain period of time, and the company recognizes the income according to the customer's lease period.
Item Year ended 31/12/2025 Year ended 31/12/2024
Urban maintenance and construction tax 108,097.57 129,975.52
Educational surcharge 46,278.54 55,488.54
Local educational surcharge 30,852.38 36,992.34
Property tax 1,916,835.05 1,901,257.76
Land use tax 507,589.88 507,812.60
Stamp duty 821,267.69 380,944.33
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Year ended 31/12/2025 Year ended 31/12/2024
Vehicle and vessel tax 18,623.72 19,521.60
Others - -
Total 3,449,544.83 3,031,992.69
Item Year ended 31/12/2025 Year ended 31/12/2024
Employee compensation expenditure 1,519,542.80 1,670,191.44
Business promotion fees 1,541,076.98 1,339,792.88
Travelling expenses 198,122.92 267,149.84
Depreciation charges 97,628.39 90,767.57
Communication expenses 8,682.40 10,635.29
Others 926,457.11 846,959.38
Total 4,291,510.60 4,225,496.40
Item Year ended 31/12/2025 Year ended 31/12/2024
Employee compensation expenditure 48,333,781.77 43,119,338.77
Depreciation and amortization charges 6,191,148.48 5,017,898.93
Depreciation of Right-of-use assets - 91,626.45
Travelling expenses 2,627,857.62 2,515,157.42
Business entertainment 463,016.76 772,472.77
Vehicle expenses 1,092,968.15 887,006.05
Agent service fees 1,058,574.26 1,316,869.29
Office expenses 3,630,297.48 4,206,495.91
Water and electricity expenses 1,466,217.39 1,556,528.68
Others 5,459,096.34 4,579,830.24
Total 70,322,958.25 64,063,224.51
Item Year ended 31/12/2025 Year ended 31/12/2024
Employee compensation expenditure 1,761,176.13 1,512,361.81
Materials 2,414,908.33 3,401,774.43
Depreciation and amortization charges 1,646,665.19 741,413.93
Others 605,799.42 611,528.94
Total 6,428,549.07 6,267,079.11
Item Year ended 31/12/2025 Year ended 31/12/2024
Interest expenses 10,728,894.79 13,886,313.80
Less: interest income 1,413,486.86 770,654.61
Losses or gains from foreign exchange 4,210,015.83 -378,456.61
Finance charges 1,556,854.70 1,340,703.67
Interest expenses on lease liabilities -
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Year ended 31/12/2025 Year ended 31/12/2024
Others 324,815.79 135,820.51
Total 15,407,094.25 14,213,726.76
Item Year ended 31/12/2025 Year ended 31/12/2024
International compliance Enhancement grant funds 55,758,700.00 62,020,500.00
Subsidy for Renovation and Upgrading of Onboard Equipment of 1,741,547.04
Fishing Vessels
Financial subsidies for special construction funds of the Blue 698,486.88 698,486.88
Economic Zone
Industrial and commercial capital investment in rural revitalization 451,092.85 1,400,000.00
project construction award
Subsidy for deep-freeze tuna vessel reimbursement - 5,715,437.90
others 721,143.84 2,069,973.30
total 59,370,970.61 71,904,398.08
Item Year ended 31/12/2025 Year ended 31/12/2024
Income from long-term equity investments accounted for by the equity -436,729.96 -535,409.28
method
Gains on debt restructuring - -135,804.65
Total -436,729.96 -671,213.93
Item Year ended 31/12/2025 Year ended 31/12/2024
Allowance for credit losses of accounts receivable -1,673,403.38 -449,855.83
Allowance for credit losses of other receivables -15,740,070.29 -3,605,114.76
Total -17,413,473.67 -4,054,970.59
Item Year ended 31/12/2025 Year ended 31/12/2024
Provision for diminution in value of inventory and Loss of contract -22,907,869.69 -54,938,355.20
performance costs
Total -22,907,869.690 -54,938,355.20
Item Year ended 31/12/2025 Year ended 31/12/2024
Gains and losses on disposal of fixed assets -47,108.24 -
Total -47,108.24 -
Item Year ended Year ended Amount to be included in non-
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Year ended Year ended Amount to be included in non-
Others 238,593.49 4,715.59 238,593.49
Total 238,593.49 4,715.59 238,593.49
Item Year ended Year ended Amount to be included in non-
Loss of scrapped fixed assets 2,142,070.38 140,535.97 2,142,070.38
Others 28,150.55 7,124.76 28,150.55
Total 2,170,220.93 147,660.73 2,170,220.93
(1) Details of income tax expenses
Item Year ended 31/12/2025 Year ended 31/12/2024
Current income tax 2,867,647.99 3,387,280.07
Deferred income tax -27,373.19 -86,839.99
Total 2,840,274.80 3,300,440.08
(2) Reconciliation between income tax expenses and accounting profit is as follows:
Item Year ended 31/12/2025
Profit before tax 45,272,177.89
Income tax expenses calculated at statutory/applicable tax rates 11,318,044.47
Effect of different tax rate of subsidiaries -132,759.26
Effect of adjustment for income tax in prior year 45,226.19
Effect of income not subject to income tax -2,850,629.12
Effect of expenses nondeductible for tax purposes 80,617.34
Effect of using deductible losses of deferred tax assets not recognised in prior periods -2,562,776.56
Effect of unrecognised deductible temporary differences and deductible losses in current period -3,057,448.26
Income tax expenses 2,840,274.80
As note Ⅵ.33.
(1) Cash flows from operating activities
① Cash received related to other operating activities
Item Year ended 31/12/2025 Year ended 31/12/2024
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Year ended 31/12/2025 Year ended 31/12/2024
Finance expenses- interest income 1,413,486.86 770,654.61
Government grants and others 10,800,306.76 13,750,099.95
Credit deposit - -
Current account and other 238,593.49 2,578,932.62
Total 12,452,387.11 17,099,687.18
② Cash paid related to other operating activities
Item Year ended Year ended
Cash payment to selling expenses 2,674,339.41 2,464,537.39
Cash payment to administrative expense 15,916,296.16 16,435,241.11
Cash payment to research and development expenses 3,692,016.19 4,013,303.37
Current account and other 7,878,697.84 1,962,352.87
Total 30,161,349.60 24,875,434.74
(2) Cash flows from investing activities
① Cash received related to other investing activities
Item Year ended Year ended
Construction deposit - 10,041,370.35
Total - 10,041,370.35
② Changes in liabilities arising from financing activities
Item Initial Balance Current increase Current decrease Ending Balance
Cash movement Non-cash Cash movement Non-cash
movement movement
Short-term loan 46,013,200.00 26,000,000.00 9,733.34 56,000,000.00 16,022,933.34
Long-term loan 380,653,409.02 97,291,702.81 114,137.73 16,679,833.33 461,379,416.23
Non-current 14,879,833.33 - 16,679,833.33 14,879,833.33 - 16,679,833.33
liabilities due within
one year
Total 441,546,442.35 123,291,702.81 16,803,704.40 70,879,833.33 16,679,833.33 494,082,182.90
(1) Supplement to statement of cash flows
Item Year ended Year ended
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Year ended Year ended
Net profit 42,431,903.09 31,854,817.12
Add:losses Provision for asset impairment 22,907,869.69 -16,459,514.46
Credit impairment 17,413,473.67 4,054,970.59
Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive 90,496,854.90 82,856,984.77
biological assets and depreciation of investment property
Depreciation of right-of-use asset - 98,934.79
Amortization of intangible assets 447,401.49 509,254.30
Amortization of long-term deferred expenses 748,211.48 712,280.73
Losses on disposal of fixed assets, intangible assets and other long-term assets ("-" for gains) 47,108.24
Losses on write-down of fixed assets ("-" for gains） 2,142,070.38 140,535.97
Losses from changes in fair value ("-" for gains) -
Financial expenses ("-" for income) 14,938,910.62 10,833,286.24
Investments losses ("-" for gains) 436,729.96 671,213.93
Decreases in the deferred tax assets ("-" for increases) 123,007.91 63,541.09
Increases in the deferred tax liabilities ("-" for decreases) -150,381.10 -150,381.08
Decreases in inventories ("-" for increases) 45,620,338.49 61,727,897.31
Decreases in operating receivables ("-" for increases) -92,291,171.65 -87,985,100.03
Increases in operating payables ("-" for decreases) -34,216,421.00 28,991,708.72
Others -
Net cash flows from operating activities 111,095,906.17 117,920,429.99
Conversion of debt into capital -
Convertible corporate bonds maturing within one year -
Fixed assets acquired under financial lease -
Cash as at 31/12/2025 284,306,289.50 249,437,263.40
Less: cash As at 1/1/2025 249,437,263.40 243,127,423.03
Add: cash equivalents as at 31/12/2025 -
Less: cash equivalents as at 31/12/2024 -
Net increase in cash and cash equivalents 34,869,026.10 6,309,840.37
(2) Cash and cash equivalents
Item Balance as at Balance as at
Including: cash on hand 615,541.90 1,510,503.38
Unrestricted bank deposits 283,690,747.60 247,926,760.02
Bond investments due within 3 months
(3) Monetary funds other than cash and cash equivalents
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Year ended Year ended argument
Other monetary funds 28,789,884.20 10,038,933.10 Bill deposit
(1) Monetary items denominated in foreign currency
Item Balance in foreign Exchange rate Balance translated into
currency as at RMB as at 31/12/2025
Monetary funds 146,933,375.54
Among: USD 15,503,880.77 7.0288 108,973,676.87
EUR 3,315,700.40 8.2633 27,398,737.89
GHS 15,395,972.48 0.6726 10,355,388.09
FCFA
JPY 4,588,983.00 0.0448 205,572.69
Accounts receivable 47,820,313.26
Among：USD 3,392,753.60 7.0288 23,846,986.51
GHS 2,047,964.89 0.6726 1,377,476.67
JPY 159,428,435.00 0.0448 7,141,915.61
FCFA 1,225,060,803.12 0.0126 15,453,934.47
Prepayments 13,624,943.70
Among：USD 1,747,391.38 7.0288 12,282,064.54
FCFA 106,503,096.00 0.0126 1,342,879.16
Other receivables 3,360,070.84
Among：USD 472,615.21 7.0288 3,321,917.77
GHS 19,250.00 0.6726 12,947.75
AUD 439.50 4.6892 2,060.90
SBD 26,940.30 0.8591 23,144.41
Accounts payable 22,039,832.00
Among：USD 3,130,574.04 7.0288 22,004,178.82
JPY 272,500.00 0.0448 12,207.18
AUD 5,000.00 4.6892 23,446.00
Contract liabilities 8,315,716.56
Among：USD 176,799.45 7.0288 1,242,687.98
GHS 5,620,745.57 0.6726 3,780,550.81
JPY 73,497,729.00 0.0448 3,292,477.77
Other payables 16,740,252.86
Among：USD 2,207,920.42 7.0288 15,519,031.05
EUR 133,639.70 8.2633 1,104,310.79
GHS 173,816.23 0.6726 116,911.02
(2) Reporting currencies of significant foreign operating entities
Significant foreign operating entity Overseas location of Reporting Basis for
primary operation currency determination
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
HABITAT INTERNATIONAL CORPORATION The Republic of USD Business
Panama environment
LAIF FISHERIES COMPANY LIMITED The Republic of Ghana USD Business
environment
YAW ADDO FISHERIES COMPANY LIMITED The Republic of Ghana USD Business
environment
ZHONG GHA FOODS COMPANY LIMITED The Republic of Ghana USD Business
environment
AFRICA STAR FISHERIES LIMITED The Republic of Ghana USD Business
environment
(1) Our company acts as lessor
Operating lease
Item Lease income Among them: Income related to
variable lease payments not included
in lease collections
Rental income 4,232,699.34 -
total 4,232,699.34 -
Ⅶ. Research and development expenses
List by property
Item Year ended 31/12/2025 Year ended 31/12/2024
Employee compensation 1,761,176.13 1,512,361.81
Materials 2,414,908.33 3,401,774.43
Depreciation cost 975,356.75 741,413.93
Other 1,277,107.86 611,528.94
Total 6,428,549.07 6,267,079.11
Includes: Expensed research and development 6,428,549.07 6,267,079.11
expenditures
Ⅷ. Changes in consolidation scope
There are no consolidation scope changes in the current period.
Ⅸ. Interest in other entities
(1) Composition of the Company
Subsidiary name Principal Registered capital Place of Business Shareholding ratio（%） Acquisition
place of registration nature direct indirect mode
operation
Shandong Zhonglu aquatic shipping Co., Qingdao, 2,250.56 Ten Qingdao, Boat charter 100 Investment and
LTD Shandong thousand RMB Shandong establishment
Province Province
Shandong Zhonglu Yuanyang (Yantai) Food Yantai, 10,432.23 Ten Yantai, Shandong Food 46.69 25.77 Investment and
Co., LTD. (hereinafter referred to as Shandong thousand RMB processing and establishment
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Subsidiary name Principal Registered capital Place of Business Shareholding ratio（%） Acquisition
place of registration nature direct indirect mode
operation
"Zhonglu Food") Province refrigeration
Shandong Zhonglu Haiyan Ocean Fishing Qingdao, 22,161.73 Ten Qingdao, Pelagic fishing 59.05 Investment and
Co., LTD. (referred to as "Zhonglu Haiyan Shandong thousand RMB Shandong establishment
Zi") Province Province
Zhonglu Yuanyang (Qingdao) Industrial Qingdao, 19,200 Ten Qingdao, Food 66.63 33.37 Investment and
Investment Development Co., LTD Shandong thousand RMB Shandong processing and establishment
Province Province refrigeration
HABITAT INTERNATIONAL Panama 150.74 Ten Panama Boat charter 100 Investment and
CORPORATION thousand USD establishment
LAIF FISHERIES COMPANY LIMITED Ghana 40 Ten thousand Ghana Pelagic fishing Zhonglu Hai Investment and
USD Yanzi holding establishment
AFRICA STAR FISHERIES LIMITED Ghana 40 Ten thousand Ghana Pelagic fishing Zhonglu Hai Investment and
USD Yanzi holding establishment
ZHONG GHA FOODS COMPANY Ghana 50 Ten thousand Ghana Pelagic fishing Zhonglu Hai Investment and
LIMITED USD Yanzi holding establishment
Shandong Zhonglu Ocean cold storage Co., Yantai, 1,500 Ten Yantai, Shandong Warehousing Zhonglu Food Investment and
LTD Shandong thousand RMB Province service holdings 100.00 establishment
Province
YAW ADDO FISHERIES COMPANY Ghana Ghana Pelagic fishing Operating lease
LIMITED
(2) Significant non-wholly owned subsidiary
Company name Minority Profit or loss Dividends Balance of the
shareholding attributable to the announced to minority interests
minority for the distribute to the as at 31/12/2025
current period minority
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd. 40.95% 2,437,513.35 159,274,299.31
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd. 27.54% 6,521,437.29 2,023,035.69 104,394,041.11
Total 8,958,950.64 2,023,035.69 263,668,340.42
(3) Main financial information of significant non-wholly owned subsidiary
Subsidiary name Ending Balance
Current assets Non-current Total assets Current liabilities Non-current Total liabilities
assets liabilities
Shandong Zhonglu 390,989,961.45 188,427,536.15 579,417,497.60 184,446,707.40 6,022,562.33 190,469,269.73
Haiyan Oceanic
Fisheries Co., Ltd.
Shandong Zhonglu 420,490,349.67 106,515,246.37 527,005,596.04 140,678,184.27 7,264,081.67 147,942,265.94
Oceanic (Yantai)
Food Co., Ltd.
Total 811,480,311.12 294,942,782.52 1,106,423,093.64 325,124,891.67 13,286,644.00 338,411,535.67
(Continued)
Subsidiary name Initial Balance
Current assets Non-current Total assets Current liabilities Non-current Total liabilities
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
assets liabilities
Shandong Zhonglu 363,222,045.51 213,055,121.58 576,277,167.09 183,233,569.78 6,285,229.78 189,518,799.56
Haiyan Oceanic
Fisheries Co., Ltd.
Shandong Zhonglu 431,697,984.77 113,182,468.49 544,880,453.26 173,873,796.39 8,277,392.13 182,151,188.52
Oceanic (Yantai)
Food Co., Ltd
Total 794,920,030.28 326,237,590.07 1,121,157,620.35 357,107,366.17 14,562,621.91 371,669,988.08
(Continued)
Subsidiary name Year ended 31/12/2025
Operating income Net profit Total Cash flows from
comprehensive operating activities
income
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd. 393,404,470.47 5,952,413.56 2,189,860.34 37,249,478.73
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd 729,879,883.68 23,679,873.96 23,679,873.96 -3,840,203.19
Total 1,123,284,354.15 29,632,287.52 25,869,734.30 33,409,275.54
(Continued)
Subsidiary name Year ended 31/12/2024
Operating income Net profit Total Cash flows from
comprehensive operating activities
income
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd. 352,164,528.36 -17,948,798.86 -16,271,364.26 6,652,357.21
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd 618,452,840.80 16,936,404.15 16,936,404.15 40,630,473.41
Total 970,617,369.16 -1,012,394.71 665,039.89 47,282,830.62
Summary financial information of non-material joint ventures and associates
Item Ending Balance / Year ended Initial Balance / Year ended
Associated enterprise：
Jinan Qini Food Technology Co., LTD 441,892.08 878,622.04
Total 441,892.08 878,622.04
The sum of the following items in proportion to -436,729.96 -535,409.28
shareholding
Among them: Net profit -436,729.96 -535,409.28
Other comprehensive income - -
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Ending Balance / Year ended Initial Balance / Year ended
Total comprehensive income -436,729.96 -535,409.28
① The basis for holding less than 20% of the voting rights with a significant impact, or holding 20% or more of the
voting rights with no significant impact.
The subsidiary of the Company, Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd., holds 15.00% of Jinan Qinzhen
Food Technology Co., Ltd., and appoints directors, which has a significant impact on its production and operation.
Ⅹ. Government subsidy
Closing balance of other receivables
Company Name Ending Balance (in Yuan)
Qingdao Laoshan District Bureau of Agriculture and Rural Affairs 107,287,931.00
Total 107,287,931.00
Note: In accordance with the Notice on the Publicity of Subsidies for Improving International Performance
Capability (2024) and the Notice on the Publicity of Subsidies for Improving International Performance Capability
(2025), as of December 31, 2025, the Company and its controlling subsidiaries had total receivable subsidies for
improving international performance capability of RMB 103,612,900. On February 2, 2026, the Company received
RMB 19,000,000 of such subsidies. As of the date of issuance of the audit report, RMB 84,612,900 of subsidies for
improving international performance capability remained uncollected. The competent authority of such government
grants, Qingdao Laoshan District Bureau of Agriculture and Rural Affairs, has stated that the funds will be disbursed
in an orderly manner based on future fiscal fund conditions.
Financial statement As at New in the Current Amount Other in the As at And assets
item 31/12/2024 current period account transferred to current period 31/12/2025 / revenue
Amount of Amount of other income in alteration correlation
subsidy non-operating the current
income period
Deferred income 53,576,277.76 2,170,000.00 - 2,633,323.85 - 53,112,953.91 asset-related
Item Amount due in 2025 Amount due in 2024
Other income 59,370,970.61 71,904,398.08
Total 59,370,970.61 71,904,398.08
XI. Related risks of financial instruments
The main financial instruments of the Company include receivables, other receivables, payables and other payables,
etc. For details of various financial instruments, ssee Note VI. The goal of the company engaged in risk management
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
is to achieve an appropriate balance between risk and income, reduce the negative impact of risk on the company's
business performance to a minimum level, and maximize the interests of shareholders and other equity investors.
Based on this risk management objective, the basic strategy of the company's risk management is to determine and
analyze various risks faced by the company, establish appropriate risk tolerance bottom line and conduct risk
management, and timely and reliably supervise various risks, and control the risks within a limited range.
(1) Credit risk
Credit risk is the risk of financial loss to the Company if the customers or counterparties to the financial instruments
fail to perform their obligations under the contracts.Credit risk mainly arises from accounts receivable from
customers.The carrying value of accounts receivable and notes receivable and other receivables is the maximum credit
risk of the Company for financial assets.
(2) Market risk
The market risk of financial instruments refers to the risk that the fair value of financial instruments or the future cash
flow fluctuates due to the market price changes, including the exchange rate risk, interest rate risk and other price risks.
The Company uses sensitivity analysis technology to analyze the possible impact of reasonable and possible changes
of market risk-related variables on the current profit and loss or shareholders' equity. Since any risk variable rarely
changes in isolation and the correlation between variables will have a significant effect on the final amount of impact
of a change in a risk variable, the following is made assuming that the change of each variable is independent.
① Exchange rate risk
Exchange rate risk refers to the risk that the fair value of financial instruments or the future cash flow fluctuates due
to changes in the foreign exchange rate. The foreign exchange risks faced by the Company mainly come from the
financial assets denominated in US dollars, and the amount of foreign currency financial assets translated into RMB is
presented in VI.54 Foreign Currency Monetary Items.
② Interest rate risk
Interest rate risk refers to the risk that the fair value of financial instruments or the future cash flow fluctuates due to
changes in the market interest rate. The interest rate risks faced by the Company mainly come from long-term bank
loans. The company's loans are floating interest rate, and there is the risk of change in the RMB benchmark interest
rate.
(3) Liquidity risk
Liquidity risk is the risk that the Company meets its obligations related to financial liabilities. Under the case of normal
and tight funds, the Company ensures that there is sufficient liquidity to fulfill the maturing debts, and conducts
financing consultations with financial institutions to maintain a certain level of standby credit line to reduce liquidity
risk.
XII. Related parties and transactions
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Name of parent Registered Nature of business Registration The shareholding The proportion of the
company Address capital ratio of the parent voting rights of the
company in the parent company
Company
Shandong State- Shandong Investment and management, 4.5 billion 47.25% 47.25%
owned assets Jinan asset management and capital
investment Co. Ltd operation, entrustment
management, investment
consulting
Note: State-owned Assets Supervision and Administration Commission of Shandong Provincial People's Government
is the ultimate controller of the Company.
Details of subsidiaries refer to Note IX. 1. Interests in other entities.
Significant joint ventures or associates of the Group are detailed in Note IX.2。
Any other joint venture or joint venture that has a balance of related party transactions with the Group in the current
period or related party transactions with the Group in the previous period
The company situation is as follows:
Name of a joint venture or joint venture Relationship with the Group
Jinan Qini Food Technology Co., LTD Associated enterprise
Entity name Relationship
Dezhou Bank Co., LTD Controlled by the same parent company
Zhongtai Xincheng Asset Management Co., LTD Controlled by the same parent company
(1) List of goods sold/services provided
Item Related party Current amount Amount incurred
transaction content in the previous
period
Ji Nan Qin Zhen Food Technology Co., Ltd. Tuna product 279,267.40 187,919.91
Shandong State-owned Assets Investment Holding Co., Ltd. Entrusted management 1,698,113.20 1,698,113.20
fee
Total 1,977,380.60 1,886,033.11
(2) Associated entrusted management/contracting and entrusted management/contracting
Entrusted management/contracting information of the company
Name of client Name of trustee Types of entrusted Commencement Trustee Custodial income Current
assets date termination date pricing basis recognized
Escrow income
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Name of client Name of trustee Types of entrusted Commencement Trustee Custodial income Current
assets date termination date pricing basis recognized
Escrow income
Shandong State- Shandong Stock right 2022/4/14 Contract 1,698,113.20
owned Assets Zhonglu ocean agreement
Investment fishing Co., LTD
Holding Co., LTD
(3) Key management compensation
Item Current amount Amount incurred in the previous
period
Key management compensation 4,256,788.00 3,406,277.00
(4) Other related transactions
Item Affiliated party Current amount Amount incurred
in the previous
period
Deposit interest income Dezhou Bank Co. LTD 273.46 4,979.71
① Accounts receivable
Item Related party Ending Balance Initial Balance
Balance Allowance for credit Balance Allowance for
losses credit losses
Accounts receivable Jinan Qini Food Technology Co., 138,262.40 6,913.12 139,828.40 7,814.97
LTD
Other receivables Zhongtai Xincheng Asset 1,800,000.00 90,000.00 1,800,000.00 90,000.00
Management Co., LTD
Other receivables Shandong State-owned Assets 372,858.72 18,642.94
Investment Holding Co., LTD
② Payable items
Item Related party Ending Balance Initial Balance
Balance Allowance for credit Balance Allowance for credit
losses losses
Dividends receivable Zhongtai Xincheng Asset 5,234,835.31 3,311,799.62
Management Co., LTD
ⅩⅢ. Commitments and contingencies
None.
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
None.
XIV. Post balance sheet events
None.
None.
XV. Other significant events
According to relative laws, regulations and policies, the pension system of the company has been established to pay
supplementary endowment insurance for employees (namely enterprise annuity) on the basis of attending primary
endowment insurance lawfully. The company has set the operating efficiency coefficient in accordance with the actual
operating conditions every year, and calculated the total amount paid by the enterprise through it. In the enterprise
pension, the borne expenses of the company have been disclosed in the case of employee pay payable and the
condition of the established escrow plan, and the individual cost has been paid by the company from their salary. This
year, the enterprise pension has been increased RMB 265.99 million , relevant information shall be referred to "Note
VI.23 Employee Benefits Payable".
(1) Determination basis of segment reporting and related accounting policy
The company’s mainly business are oceanic fishing, aquatic products processing, vessels leasing and others. The
company disclosure the branches reports by the character and plate of its main business.
(2) Financial information of segment reporting
Item Oceanic fishing Refrigerated Aquatic products Others Elimination Total
transportation processing and between branches
refrigeration
Operating income 736,075,102.47 139,342,956.86 725,364,789.37 463,598.89 -125,435,326.69 1,475,811,120.90
Operating cost 693,406,658.79 105,228,797.32 682,201,281.19 397,092.62 -125,435,326.69 1,355,798,503.23
Credit impairment -16,417,301.44 -229,119.37 -769,211.91 2,159.05 -17,413,473.67
losses
Impairment of -17,361,237.59 -5,546,632.10 -22,907,869.69
assets
Depreciation and 63,825,257.85 16,512,369.68 6,561,304.12 5,115,402.06 92,014,333.71
amortization
Profit before tax 19,871,172.54 24,269,390.97 26,462,284.83 -25,348,839.90 18,169.45 45,272,177.89
Income tax 0.00 53,112.33 2,782,410.87 4,751.60 2,840,274.80
expenses
Net profit 19,871,172.54 24,216,278.64 23,679,873.96 -25,353,591.50 18,169.45 42,431,903.09
Total assets 1,252,234,087.64 337,919,399.07 527,005,596.04 1,224,618,505.43 -1,173,564,493.24 2,168,213,094.94
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Oceanic fishing Refrigerated Aquatic products Others Elimination Total
transportation processing and between branches
refrigeration
Total liabilities 517,234,559.89 72,065,658.44 147,942,265.94 859,680,298.51 -787,048,630.97 809,874,151.81
XVI. Notes to major items in the parent company's financial statements
(1) Aging disclosure
Aging Ending book balance Opening book balance
Within 6 months 6,986,938.33 371,704.92
More than 3 years 5,689,018.01 5,689,018.01
Total 12,825,956.34 6,060,722.93
(2) Accounts receivable by provision method for allowance credit losses
Item Ending Balance
Balance PCT Allowance for credit PCT Carrying amount
losses
Individually assessment subject to - - - - -
allowance for credit losses
Grouping assessment subject to 12,825,956.34 100.00% 6,053,364.93 47.20% 6,772,591.41
allowance for credit losses
Group 1: Non-affiliated party 12,825,956.34 100.00% 6,053,364.93 47.20% 6,772,591.41
customer portfolio
Group 2: Combination of related - 0.00% - - -
parties
Total 12,825,956.34 100.00% 6,053,364.93 47.20% 6,772,591.41
(Continued)
Item Initial Balance
Balance PCT Allowance for credit PCT Carrying amount
losses
Individually assessment subject to - - - - -
allowance for credit losses
Grouping assessment subject to 6,060,722.93 100.00% 5,707,603.26 94.17% 353,119.67
allowance for credit losses
Group 1: Non-affiliated party 6,060,722.93 100.00% 5,707,603.26 94.17% 353,119.67
customer portfolio
Group 2: Combination of related - 0.00% - - -
parties
Total 6,060,722.93 100.00% 5,707,603.26 94.17% 353,119.67
Group 1: Accounts receivable due from non-affiliated party customer portfolio:
Aging Ending Balance
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Balance Allowance for PCT
credit losses
Within 6 months 6,986,938.33 349,346.92 5.00%
More than 3 years 5,689,018.01 5,689,018.01 100.00%
Total 12,825,956.34 6,053,364.93
(Continued)
Aging Initial Balance
Balance Allowance for PCT
credit losses
Within 6 months 371,704.92 18,585.25 5.00%
More than 3 years 5,689,018.01 5,689,018.01 100.00%
Total 6,060,722.93 5,707,603.26
(3) Allowance for credit losses
Item Initial Balance Amount of change in the current period Ending Balance
Provision Recovery or Write off Others
reversal
Accounts 5,707,603.26 345,761.67 - - - 6,053,364.93
receivable
Total 5,707,603.26 345,761.67 - - - 6,053,364.93
(4) Account receivables and contractual assets in the top five closing balances collected by defaulter
Name of the company Ending balance of Ending balance of Ending balance of Proportion of the Ending balance
accounts receivable contract assets accounts total amount of allowance for
receivable and doubtful
contract assets accounts
A 4,902,012.64 - 4,902,012.64 38.22% 245,100.63
B 1,545,161.37 - 1,545,161.37 12.05% 77,258.07
C 3,600,962.12 - 3,600,962.12 28.08% 3,600,962.12
D 494,464.38 - 494,464.38 3.86% 24,723.22
E 430,625.10 - 430,625.10 3.36% 430,625.10
Total 10,973,225.61 - 10,973,225.61 85.57% 4,378,669.14
Item Ending Balance Initial Balance
Interest receivable
Dividends receivable 26,199,905.76 35,932,821.99
Other receivables 186,581,184.21 154,348,571.29
Total 212,781,089.97 190,281,393.28
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(1) Dividends receivable
① Classification and disclosure of dividends receivable
Item Ending Balance Initial Balance
Subsidiary dividend 26,199,905.76 35,932,821.99
Less: Allowance for credit losses - -
Total 26,199,905.76 35,932,821.99
(2) Other receivables
① Aging analysis of other receivables
Aging Ending book balance Opening book balance
Within 6 months 103,771,598.81 103,153,829.72
More than 3 years 32,493,625.82 13,009,773.80
Total 203,635,103.41 166,140,296.59
② Category of other receivables by nature
Nature Ending book balance Opening book balance
Intra-company transaction 157,404,302.58 136,748,535.22
Imprest funds and others 46,230,800.83 29,391,761.37
Total 203,635,103.41 166,140,296.59
③ Classified disclosure according to bad debt provision method
category Ending Balance
Book balance scale Bad debt reserve Provision ratio Book value
Provision for bad debts on an 6,936,767.11 3.41% 6,936,767.11 100.00% -
individual basis
Provision for bad debts on a portfolio 196,698,336.30 96.59% 10,117,152.09 5.14% 186,581,184.21
basis
Including：Aging portfolio 46,230,800.83 22.70% 10,117,152.09 21.88% 36,113,648.74
Combine related party 150,467,535.47 73.89% - - 150,467,535.47
combinations
Total 203,635,103.41 100.00% 17,053,919.20 8.37% 186,581,184.21
(continue)
Item Initial Balance
Book balance scale Bad debt reserve Provision ratio Book value
Provision for bad debts on an 6,936,767.11 4.18% 6,936,767.11 100.00% -
individual basis
Provision for bad debts on a portfolio 159,203,529.48 95.82% 4,854,958.19 3.05% 154,348,571.29
basis
Including：Aging portfolio 29,391,361.37 17.69% 4,854,958.19 16.52% 24,536,403.18
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Initial Balance
Book balance scale Bad debt reserve Provision ratio Book value
Combine related party 129,812,168.11 78.13% - - 129,812,168.11
combinations
Total 166,140,296.59 100.00% 11,791,725.30 7.10% 154,348,571.29
Item Ending Balance
Carrying Amount Provision for Bad Provision Rate Reasons for
Debts Accrual
YAW ADDO FISHERIES COMPANY LIMITED 6,936,767.11 6,936,767.11 100.00% YAW payment for
vessel purchase:
The vessel has
been
disassembled, and
YAW is unable to
pay the amount
due. Hence, a bad
debt provision has
been made.
Total 6,936,767.11 6,936,767.11 100.00%
Combined itemization：Aging portfolio
name Ending Balance
Book balance Bad debt reserve Provision ratio
More than 3 years 3,488,250.22 3,488,250.22 100.00%
Total 46,230,800.83 10,117,152.09
（continue）
name Initial Balance
Book balance Bad debt reserve Provision ratio
More than 3 years 3,447,814.77 3,447,814.77 100.00%
Total 29,391,761.37 4,854,958.19
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
④ The provision of allowance for credit losses
The allowance for credit losses Stage one Stage two Stage three Total
(credit - (credit-impaired)
unimpaired)
Beginning balance 1,407,143.42 - 10,384,581.88 11,791,725.30
Revaluation of beginning balance 1,407,143.42 - 10,384,581.88 11,791,725.30
Provision 5,221,758.45 - 40,435.45 5,262,193.90
Reversal - - -
Charge off - - -
Write-off - -
Other changes - - -
Ending balance 6,628,901.87 - 10,425,017.33 17,053,919.20
⑤ Allowance for credit losses
Item Initial Balance Amount of change in the current period Ending Balance
Provision Recovery or Write off Exchange impact
reversal
Allowance for 11,791,725.30 5,262,193.90 - - - 17,053,919.20
credit losses of
other receivables
Total 11,791,725.30 5,262,193.90 - - - 17,053,919.20
⑥ Other receivables due from the top five debtors are as follows:
Name of the unit Nature of Ending Balance Aging As a percentage of Ending balance of
payment the total amount allowance for
credit losses
LAIF. FISHERIES. COMPANY Current account 70,624,026.75 Within 1 year 34.68% -
LIMITED
Shandong Zhonglu Haiyan Ocean Current account 40,410,113.50 Within 1 year, 1–3 19.84% -
Fishery Co., Ltd. years
Qingdao Laoshan District Bureau of Government 39,758,735.00 0–6 months, 1–2 19.52% 6,440,958.00
Agriculture and Rural Affairs grant receivable years
YAW ADDO FISHERIES Current account 11,083,500.71 Within 1 year, 1-3 5.44% -
COMPANY LIMITED years or more
Shandong Zhonglu Aquatic Shipping Current account 8,279,334.72 1-3 years or more 4.07% -
Co., Ltd.
Total 170,155,710.68 83.55%
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Ending Balance Initial Balance
Balance Provision Carrying amount Balance Provision Carrying amount
for impairment for impairment
Investment to 328,189,455.23 328,189,455.23 328,189,455.23 328,189,455.23
subsidiaries
Total 328,189,455.23 328,189,455.23 328,189,455.23 328,189,455.23
Investment to subsidiaries
Investee Initial Balance Additions Reductions Ending Balance
HABITAT INTERNATIONAL 12,476,145.60 - - 12,476,145.60
CORP.
Shandong Zhonglu Oceanic Fisheries 22,869,513.38 - - 22,869,513.38
Transportation Co., Ltd.
Shandong Zhonglu Oceanic (Yantai) 55,448,185.24 - - 55,448,185.24
Food Co., Ltd.
Shandong zhonglu Haiyan Oceanic 141,395,611.01 - - 141,395,611.01
Fisheries Co., Ltd.
Zhonglu Ocean (Qingdao) Industrial 96,000,000.00 - - 96,000,000.00
Investment Development Co., Ltd.
Total 328,189,455.23 - - 328,189,455.23
(1) Operating income and operating costs
Item Year ended 31/12/2025 Year ended 31/12/2024
Income Cost Income Cost
Primary operating business 326,925,080.02 306,754,412.39 365,145,627.80 337,377,622.64
Other operating business 7,528,623.53 3,525,898.68 7,967,752.33 3,144,057.83
Total 334,453,703.55 310,280,311.07 373,113,380.13 340,521,680.47
(2) The income generated by the contract
① Current operating income is classified according to the time of revenue recognition
Classification of Product sales revenue Other business income total
contract Operating income Operating cost Operating income Operating cost Operating income Operating cost
Confirm at a 326,925,080.02 306,754,412.39 - - 326,925,080.02 306,754,412.39
certain point
Confirm within a - - 1,698,113.19 - 1,698,113.19 -
certain period of
time
Total 326,925,080.02 306,754,412.39 1,698,113.20 - 328,623,193.21 306,754,412.39
② Income from applicable lease criteria
Item Rent Rental and others Total
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Operating income Operating cost Operating income Operating cost
Income from main business
Other business income 5,830,510.34 3,525,898.68 5,830,510.34 3,525,898.68
Total 5,830,510.34 3,525,898.68 5,830,510.34 3,525,898.68
Item Year ended Year ended
Gain/(Loss) from long-term equity investments in cost method 31,522,678.67 18,183,814.22
Bill discounting expenses - -100,548.20
Total 31,522,678.67 18,083,266.02
XVII. Supplementary information
Item Amount Remark
Disposal of profits and losses of non-current assets, including the offset part of the asset -2,189,178.62 -
impairment provisions
The government subsidies included in the current profit and loss, except the government subsidies 3,612,270.61 -
that are closely related to the normal operation of the company, conform to the national policies
and regulations, are enjoyed according to the determined standards, and have a sustained impact
on the company's profit and loss
In addition to the effective hedging business related to the normal operation of the Company, the -
gains and losses arising from the fair value changes caused by the holding of financial assets and
financial liabilities and the gains and losses generated by the disposal of financial assets and
financial liabilities
Custodian fee income obtained from the entrusted operation 1,698,113.19 -
Other non-operating income and expenses other than the above items 210,442.94 -
Deduct: Income tax impact 243,495.76 -
The impact of minority shareholders' equity 51,577.75 -
Total 3,036,574.61 -
Note: In accordance with the Notice on Implementing the 2021 Fishery Development Subsidy Policy (Document No.
Nongban Jicai [2021] No. 24) and the Notice on Implementing 2025Agricultural Industry Development Fund Projects
Related to Distant-Water Fisheries (Document No. Nongyu Yuanhan [2025] No. 81), the Company received a
government grant of RMB 55,758,700 this year to enhance international performance capabilities. As of December 31,
and fishing vessel operating hours and is calculated based on parameters including the Company’s performance rating
and fishing vessel operating hours according to the rates set by relevant national and provincial authorities, it has not
been presented as non-recurring profit or loss.
Profit in report period Weighted average return on Earnings per share
equity Basic earnings per Diluted earnings
share per share
Net profit attributable to the common share holders 3.11% 0.13 0.13
Full text of the annual report of 2025, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Profit in report period Weighted average return on Earnings per share
equity Basic earnings per Diluted earnings
share per share
Net profit attributable to the common shareholders after deducting 2.82% 0.11 0.11
non-recurring gain or loss items
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