Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Stock Code: 600873 Stock Abbreviation: Meihua Bio
Meihua Holdings Group Co., Ltd.
This is an English translation from the 2025 Semi-Annual Report, in case of any
inconsistency, the Chinese Version shall prevail.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Important Information
I. The Company’s board of directors, board of supervisors, directors, supervisors, and officers
guarantee that the contents of this semi-annual report are true, accurate, and complete without
any false records, misleading statements, or material omissions and bear joint and several legal
liability.
II. All of the Company’s directors have attended the board meeting.
III. This semi-annual report has not been audited.
IV. Wang Aijun, the principal of the Company, Wang Lihong, the accounting principal, and Wang
Ailing, the principal of the accounting body (the accounting officer), hereby declare that they
guarantee the truthfulness, accuracy, and completeness of the financial report in this semi - annual
report.
V. Profit distribution plan or capital reserve conversion plan for the Reporting Period as
approved by the Board
Not Applicable
VI. Risk Disclosure on Forward-Looking Statements
√ Applicable ?Not applicable
This semi-annual report involves forward-looking descriptions such as future plans, and such
statements do not constitute material commitments for investors. Investors are reminded to pay attention
to the risk of investment.
VII. Any occupation of funds by the controlling shareholder or other affiliates for non-operating
purposes
No
VIII. Any external guarantee that violates the decision-making procedures
No
IX. Is it the case that more than half of the directors cannot guarantee the truthfulness, accuracy,
and completeness of the semi-annual report disclosed by the Company?
No
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
X. Warning of Key Risks
For the details of the risks faced by the Company, refer to the “Potential Risks” part in “Section 3
Discussion and Analysis by the Management” and the “Risks Related to Financial Instruments” part in
“Section 8 Financial Report”.
XI. Miscellaneous
? Applicable √Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Contents
Financial statements signed and sealed by the Company’s principal, the accounting principal, and the
List of
principal of the accounting body (the accounting officer)
documents for
The originals of the Company’s documents and announcements disclosed on the website of the
reference
Shanghai Stock Exchange during the Reporting Period
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Section 1. Definitions
In this report, the terms below have the following meanings, unless the context otherwise requires:
Definitions of common terms
Company, the Company,
the listed company, Meihua Meihua Holdings Group Co., Ltd., whose stock name is “Meihua Bio” and
means
Bio, Meihua Group, or stock code is 600873.
Meihua Company
Tongliao Meihua Biotech Co., Ltd., a wholly-owned subsidiary of the
Tongliao Meihua means
Company.
Tongliao Jianlong Chemical Co., Ltd., a wholly-owned subsidiary of
Tongliao Jianlong means
Tongliao Meihua.
Tongliao Base or Tongliao the production base located in Tongliao of the Inner Mongolia autonomous
means
Company region as formed by Tongliao Meihua and Tongliao Jianlong.
Xinjiang Meihua Amino Acid Co., Ltd., a wholly-owned subsidiary of the
Xinjiang Meihua means
Company.
Wujiaqu Jianlong Chemical Co., Ltd., a wholly owned subsidiary of Xinjiang
Wujiaqu Jianlong means
Meihua.
Xinjiang Base or Xinjiang the production base in the Wujiaqu Industry Park located in the Xinjiang
means
Company Uygur autonomous region where Xinjiang Meihua is located.
Jilin Meihua Amino Acid Co., Ltd., a wholly-owned subsidiary of the
Jilin Meihua means
Company.
Jilin Base, Baicheng Base, the production base located in Baicheng of Jilin province where Jilin Meihua
means
or Jilin Company Amino Acid Co., Ltd. is located.
Three production bases or the Company’s production bases in Tongliao of Inner Mongolia, Wujiaqu of
means
all production bases Xinjiang, and Baicheng of Jilin.
Meihua Group International Trade (Hong Kong) Co., Ltd., a wholly-owned
Hong Kong Meihua means
subsidiary of the Company.
Lhasa Meihua Bio-investment Holdings Co., Ltd., a wholly-owned subsidiary
Lhasa Meihua means
of the Company.
Zhuhai Hengqin Meihua Biotech Co., Ltd., a wholly-owned subsidiary of the
Hengqin Meihua means
Company.
HONGKONG PLUM HOLDING LIMITED, a wholly-owned subsidiary of
Hong Kong Holdings means
Hengqin Meihua.
CAYMAN PLUM HOLDING LIMITED, a wholly-owned subsidiary of
Cayman Company means
Hong Kong Holdings.
PLUM BIO TECHNOLOGY GROUP PTE.LTD., a wholly-owned subsidiary
Singapore Company means
of Cayman Company.
CSRC means the China Securities Regulatory Commission.
SSE or the Stock Exchange means the Shanghai Stock Exchange.
CSDC Shanghai means China Securities Depository and Clearing Co., Ltd. Shanghai Branch.
the Ministry of Ecology and Environment of the People’s Republic of China
Environmental authorities means
and the environmental authorities authorized by it.
Amino acids for animal the amino acids used as feed supplement for animal nutrition, which can
means
nutrition enhance the effects of feed, improve the utilization of feed, and supplement
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
and balance nutrition. The amino acids for animal nutrition produced by the
Company include lysine, threonine, and valine.
amine in proteins. It is an amino acid and ketogenic amino acid essential for
mammals. The common L-lysine is one of the 20 amino acids that make up
proteins. Depending on content, lysine is classified into L-lysine
hydrochloride (commonly known as the 98% lysine) and L-lysine sulfate
Lysine means
(commonly known as the 70% lysine). The addition of lysine to feed
improves meat quality, increases the ratio of lean, and refines meat texture. It
increases the utilization of feed proteins and reduce the dosage of crude
protein. It also reduces piglet diarrhea, cuts feeding costs, and increases
economic returns.
alcoholic hydroxyl. It is an amino acid and ketogenic amino acid essential for
mammals. The common L-threonine is one of the 20 amino acids that make
Threonine means
up proteins. Threonine is an essential amino acid. Threonine is often added to
the feed for piglets and poultry. It is the second limiting amino acid in pig
feed and the third limiting amino acid in poultry feed.
that contains five carbon atoms. It is an amino acid and glycogenic amino
acid essential for mammals. The common L-valine is one of the 20 amino
Valine means
acids that make up proteins. The addition of valine to sow feed can help
increase lactation yield. It also helps improve animals’ immunity and affects
endocrine.
Corn gluten meal is a byproduct of the manufacture of starch from maize
grain in the food industry or its purification in the brewing industry. It is rich
Starch byproduct protein in protein nutrients, has a special taste and color, and can be used as feed.
powder, feed fiber, germ, means Corn husk powder (feed fiber) is a byproduct of the manufacturing process of
mycoprotein, etc. manufacturers engaged in the deep processing of corn. It is produced from
maize grains being soaked, put into starch production, washed, squeezed, and
dried. Its main components include fiber, starch, and proteins.
The food additives (flavor enhancers) produced by the Company. It refers to
Food taste and trait artificial or natural substances that are added to food for the purpose of
means
improving products improving food quality, color, smell, and taste, as well as for preservation and
processing.
glutamic acid monosodium salt, which is produced from the microbial
fermentation, purification, and refinement of saccharic or starch raw
MSG means materials. The finished product is white columnar crystal or crystalline
powder. As a basic flavoring agent, MSG not only enhances the taste of
dishes and stimulates appetite but also stimulates the secretion of digestive
juice, thereby helping food digestion and absorption in human bodies.
a substance composed of disodium 5’-inosine (IMP) and
Disodium 5’-ribonucleotide means disodium 5’-guanosine (GMP) in a 1:1 proportion. It is mostly used in
condiments or condiment blends with MSG to enhance taste.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
a safe and reliable natural sugar with the superb ability to maintain cell
viability and biomacromolecular activity. It is known as the “sugar of life” in
the science community. With a moderately sweet taste, it serves as a unique
Trehalose means food ingredient that prevents food deterioration, inhibits nutrient
deterioration, preserves food flavors, and improves food quality. It is also an
important ingredient for cosmetics that maintain cell viability and preserve
moisture. It is generally recognized as safe (GRAS) by the FDA.
are also known as pharmaceutical amino acids. The Company’s
pharmaceutical amino acids are mainly divided into two parts. One is amino
acid products, including L-glutamine, branched-chain amino acids
(L-isoleucine, L-valine, and L-leucine), and L-proline, etc., which are mainly
Amino acids for human
means used as upstream raw materials for sports nutrition food, food for special
medical purposes
medical purposes, and drugs. The other part is pharmaceutical intermediate
raw materials, including L-proline and nucleoside (inosine, guanosine, and
adenosine), which are mainly used as upstream raw materials for drugs that
treat chronic diseases (such as hypertension, diabetes, hepatitis B, etc.).
L-proline (known as proline for short) is one of the 18 amino acids for the
human body to synthesize proteins. It is an important raw material for amino
acid transfusions as well as a key intermediate for synthesizing first-line
Proline means antihypertensive drugs, such as captopril and enalapril. It is widely applied in
food and pharmaceutical industries. The Company produces L-proline
through corn fermentation, which is free of all the chemical reagents added in
synthesis and is thus safer.
with the scientific name of 2-amino-4-formamide butyric acid, is the amide of
glutamic acid. L-glutamine is the coding amino acid in protein synthesis and
an amino acid essential for mammals. In vivo, it can be converted from
glucose. Glutamine prevents muscle breakdown and promotes muscle growth.
Glutamine means
It is an important nutrition supplement for bodybuilders and bodybuilding
enthusiasts. It also improves human immunity and antioxidant capacity. It has
superb healthcare and even medical effects for the gastrointestinal and
digestive systems.
L-isoleucine is one of the 20 common amino acids that make up proteins. It
Isoleucine means contains two asymmetric carbon atoms and is an amino acid and ketogenic
amino acid essential for mammals.
L-leucine is one of the 20 common amino acids that make up proteins. It is an
amino acid and a ketogenic and glycogenic amino acid essential for
mammals. Leucine, isoleucine, and valine are all branched-chain amino acids,
Leucine means
which help promote muscle recovery after training. In particular, leucine is a
very effective branched-chain amino acid that effectively prevents muscle
loss as it is able to break down faster into glucose.
a water-soluble polysaccharide produced from the fermentation of
Aureobasidium pullulans. Pullulan can be processed into a variety of
Pullulan means products. With superb film-forming properties, it forms highly stable pullulan
film. It also has excellent oxygen isolation performance. In pharmaceutical
and food industries, it is widely used in capsule molding agents, thickeners,
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
adhesives, and food packaging. Pullulan has been used as food accessories for
more than 20 years in Japan and is generally recognized as safe (GRAS) by
the FDA.
a monospore polysaccharide from the fermentation of pseudoxanthomonas. It
offers many functions due to its special macromolecular structure and
colloidal characteristics. It is widely used in different fields as emulsifiers,
Xanthan gum means
stabilizers, gel thickeners, impregnating compounds, and film molding
agents. Xanthan gum is a microbial polysaccharide in mass production with
broad applications around the world.
the fertilizers containing organic substances that provide multiple inorganic
Bio-organic fertilizers means
and organic nutrients for crops and fertilize and improve soil.
The Manufacturing Execution System (MES) is a key component of smart
manufacturing. Through functions such as real-time monitoring, data
collection and analysis, and production scheduling, an MES optimizes
production processes and enhances both efficiency and quality. The core
MES means functions of an MES include production planning management, material
management, quality control, equipment maintenance, and personnel
management. By collecting and providing real-time data feedback, an MES
can dynamically adjust production plans, optimize resource allocation, reduce
waste, and enable comprehensive traceability of product quality.
Human Milk Oligosaccharides, which are a type of complex oligosaccharide
composed of monosaccharides, derivatives, sialic acid, and other structural
units linked by glycosidic bonds. Over 150 types of HMO structures have
been identified in human milk. As the third most abundant solid component in
human breast milk, after lactose and fat, HMO plays a crucial physiological
HMO means
role. HMOs are vital for infant growth and development, both in the short and
long term. They promote the balance of the intestinal microecology in infants,
stimulate the growth of beneficial bacteria, inhibit the growth of harmful
bacteria, prevent the colonization of pathogenic bacteria, regulate the immune
system, and support cognitive development in infants.
means Kirin Holdings Company, Limited, a company listed on the Tokyo Stock
Exchange with the stock code 2503.T. Founded in 1907 and headquartered in
Kirin Holdings Tokyo, Japan, it is a global leader in beverage and food manufacturing, with
business operations spanning multiple sectors, including beer, soft drinks,
health products, and pharmaceuticals.
means Kyowa Hakko Bio Co., Ltd., a wholly-owned subsidiary of Kirin Holdings. It
is a global leader in the biotechnology and fermentation industries,
Kyowa Hakko Bio specializing in the development and production of high-quality amino acids
and other novel synthetic biology products for pharmaceutical, food, and
industrial applications.
a reaction process in which massive metabolites are produced and
Fermentation means accumulated through the growth and chemical changes of microorganisms (or
animal/plant cells).
mainly involves matrix conversion (the converted matrix is the product itself).
Traditional fermentation means
Traditional fermentation gives unique tastes and nutrients to the product and
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
changes the texture of the product, such as the fermentation process involved
in the production of wine, bread, yogurt, fermented beancurd, and pickled
vegetables. Traditional fermentation is generally natural fermentation. In this
case, there are many kinds of fermentation microorganisms, and it is usually
impossible to conduct pure culture. The specific microorganism types and
proportions are not even known. There is also traditional fermentation
involving pure microorganisms.
a process that uses microorganisms as cell factories to produce specific
functional components. In general terms, precision fermentation is a process
Precision fermentation means of genetic reprogramming. It is synthetic biology. Scientists change the genes
of selected microorganisms based on specific designs, and their genes are
programmed to produce specific fermentation products.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Section 2. Company Overview and Key Financial Indicators
I. Company Information
Chinese name 梅花生物科技集团股份有限公司
Short Chinese name 梅花生物、梅花集团
English name MeiHua Holdings Group Co., Ltd.
Abbreviation MEIHUABIO, MeiHuaGroup
Legal representative Wang Aijun
II. Contact Person and Contact Information
Board Secretary
Name Liu Xianfang
Address
Development Zone, Hebei Province
Tel 0316-2359652
Fax 0316-2359670
Email mhzqb@meihuagrp.com
III. Summary of Changes in Basic Information
Unit 5, Building 11, Yangguang Xincheng, 158 Jinzhu West Road,
Registered Address
Lhasa, Xizang Autonomous Region
In January 2018, the company’s registered address was changed
from “No. 189, Jinzhu West Road, Lhasa” to “Building 11, Unit 5,
Changes in the registered address
Sunshine New City, No. 158, Jinzhu West Road, Lhasa.” For details,
please refer to the company’s Announcement No. 2018-002.
Office address
Development Zone, Hebei Province
Postal code of the office address 065001
In February 2025, the company’s official website underwent a
complete upgrade. The new website address is
Website https://www.meihua.group. The previous website,
http://www.meihuagrp.com, will be decommissioned and no longer
accessible after 24:00 Beijing Time on February 4, 2026.
Email mhzqb@meihuagrp.com
Details on changes to the company’s website can be found in the
Index for Changes During the Reporting Period
relevant notes of the company’s 2024 Annual Report.
IV. Summary of Changes in Information Disclosure and Filing Locations
Designated newspapers for information disclosure Shanghai Securities News, Securities Times
Website for publication of the semi-annual report Shanghai Stock Exchange website (www.sse.com.cn)
Filing locations for the company’s semi-annual
Company Securities Department; Shanghai Stock Exchange
report
Index for changes during the reporting period Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
V. Company’s Stock Information
Stock Exchange for the
Stock name before
Stock type listing of the Stock name Stock code
change
Company’s stock
Shanghai Stock
A-share Meihua Bio 600873 Meihua Group
Exchange
VI. Other Relevant Information
□Applicable √Not applicable
VII. Key Accounting Data and Financial Indicators of the Company
(I) Key Accounting Data
Unit: yuan Currency: RMB
Change Compared
Current Reporting Same Period Last
Key accounting data to Same Period Last
Period (Jan–Jun) Year
Year (%)
Revenue 12,280,450,603.53 12,642,718,053.37 -2.87
Total Profit 2,089,170,850.25 1,717,290,802.15 21.66
Net profit attributable to the shareholders of
the listed company
Net profit attributable to the shareholders of
the listed company after deducting 1,628,363,104.40 1,302,850,887.62 24.98
non-recurring profit or loss
Net cash flows from operating activities 2,312,791,220.63 2,235,818,123.12 3.44
Change Compared
End of Current
End of Previous Year to End of Previous
Reporting Period
Year (%)
Net assets attributable to the shareholders of
the listed company
Total assets 24,001,497,533.13 23,809,558,011.66 0.81
(II) Key Financial Indicators
Change Compared
Current Reporting Same Period Last
Key financial indicators to Same Period Last
Period (Jan–Jun) Year
Year (%)
Basic earnings per share (yuan/share) 0.62 0.50 24.00
Diluted earnings per share (yuan/share) 0.62 0.50 24.00
Basic earnings per share after deducting
non-recurring profit or loss (yuan/share)
Increased by 1.55
Weighted average return on equity (%) 11.81 10.26
percentage points
Weighted average return on equity after Increased by 1.81
deducting non-recurring profit or loss (%) percentage points
Notes to the Company’s key accounting data and financial indicators
? Applicable √Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
VIII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
? Applicable √Not applicable
IX. Non-recurring Items and Amounts
√ Applicable ?Not applicable
Unit: yuan Currency: RMB
Notes (if
Non-recurring items Amount
applicable)
Gains or losses from the disposal of non-current assets, including the write-offs of the
-6,005,098.60
accrued provisions for asset impairment
Government grants recognized in the profit or loss, excluding government grants that
are closely related to the Company’s normal operations, conform with national policies,
are enjoyed in accordance with established standards, and have continuous impact on
the Company’s profit or loss
Gains or losses from fair value changes arising from the financial assets and financial
liabilities held by non-financial enterprises and gains or losses from the disposal of
financial assets and financial liabilities, except for the effective hedging associated with
the Company’s normal operations
Fund possession fees collected from non-financial enterprises that are recognized in the
profit or loss
Gains or losses from the entrusted investment or management of assets
Gains or losses from external entrusted loans
Losses on assets due to force majeure factors, such as natural disasters
Reversal of provisions for the impairment of accounts receivable for which the
impairment test is conducted separately
Gains from the investment costs of the Company for the acquisition of subsidiaries,
associates, and joint ventures being less than the fair value of the investees’ identifiable
net assets due to the Company at the acquisition of investment
Net profit or loss of subsidiaries formed through business combinations under common
control for the period from the beginning of the Reporting Period to the combination
date
Gains or losses from the exchange of non-monetary assets
Gains or losses from debt restructuring
Non-recurring expenses of the Company arising from the discontinuation of relevant
operating activities, such as expenses for staff resettlement
Once-off effect of adjustments to tax and accounting laws and regulations on the profit
or loss
Share payment expenses recognized once off due to the cancellation or change of the
share incentive plan
For share payment in cash, gains or losses from changes in the fair value of staff
remuneration payable after the vesting date
Gains or losses from changes in the fair value of investment property that is
subsequently measured in the fair value model
Gains from transactions with obviously unfair transaction prices
Gains or losses from contingencies irrelevant to the Company’s normal operations -509,941.40
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Trusteeship income from trusteeship business
Other non-operating income and expenditure than the above -275,185.62
Other profit or loss items that fall within the definition of the non-recurring profit or
loss
Less: effect of income tax 23,801,666.18
effect of minority interest (after tax)
Total 139,587,012.49
If the Company defines any items not listed in the Explanatory Announcement on Information
Disclosure for Companies Offering Their Securities to the Public No.1 – Non-recurring Gains or Losses
as non-recurring items which involve significant amounts or defines any non-recurring items listed in the
Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the
Public No.1 – Non-recurring Gains or Losses as recurring items, the Company should provide the
reasons.
? Applicable √Not applicable
X. Net Profit Adjusted for Share-Based Payments (Applicable to Companies with Equity
Incentive or Employee Stock Ownership Plans)
? Applicable √Not applicable
XI. Miscellaneous
? Applicable √Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Section 3. Discussion and Analysis by the Management
I. Industry and Main Business Overview During the Reporting Period
(I) Industry Overview
Based on the Guiding Catalogue of Key Products and Services for Strategic Emerging Industries
(2016 Edition) issued by the National Development and Reform Commission (NDRC), the Company’s
main products fall within the “bio-manufacturing industry of the biological industry.” Hence, the
Company is in the bio-manufacturing industry.
Biomanufacturing is an advanced production method centered on industrial biotechnology. It relies
on cutting-edge biological technologies such as genetic engineering and synthetic biology, and utilizes
the physiological and metabolic functions or catalytic activities of microorganisms, cells, and enzymes
to produce target products on a large scale through industrial fermentation processes. According to
industry forecasts, China’s biomanufacturing market is expected to reach RMB 1.8 trillion by 2030,
accounting for nearly 25% of the global market.
Unit: 100 million China Biomanufacturing Market Size Forecast, 2020–2030E
Chart/Graph Section
Industrial Food & Medical Bio-agriculture &
Healthcare
Animal 1 1
Supplements & Personal Technologies
Chemical Care Husbandry
Data Sources: China Securities Times, China Business Industry Research Institute, CICC Puhua Industry Research Institute, Boston
Consulting Group, Huajing Industry Research Institute, CEC Capital, and others.
(I) “Biomanufacturing Everything”
As a key component of the new wave of global technological and industrial transformation,
biomanufacturing is fundamentally reshaping traditional production methods and driving innovation in
raw materials, manufacturing processes, and product properties.
According to McKinsey, biomanufactured products can replace up to 70% of chemical
manufacturing products. Boston Consulting Group (BCG) predicts that by the end of the 21st century,
biomanufacturing will be applied in one-third of global manufacturing and is expected to generate
economic value of up to USD 30 trillion. Based on the government’s interpretations of the “14th
Five-Year Plan” for bioeconomy development, the biomanufacturing industry is a key focus of the
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
bioeconomy. Over the next decade, it is expected that 35% of petrochemical and coal chemical products
will be replaced by biomanufactured products.
(2) Aligning with the Era’s “Green, Low-Carbon, and Sustainable” Development Goals
Biomanufacturing technologies can replace traditional high-pollution and high-energy production
methods, aligning with the contemporary goals of green, low-carbon, and sustainable development. In
terms of green development, biomanufacturing can reduce energy and material consumption in industrial
processes and minimize waste emissions as well as air, water, and soil pollution. In terms of low-carbon
development, biomanufacturing can utilize natural and renewable raw materials, significantly lowering
carbon emissions and resource consumption, thereby addressing global resource and environmental
challenges and promoting sustainable development. By optimizing strains and improving fermentation
efficiency, synthetic biology technologies can facilitate the transition of traditional industries toward
high-efficiency, low-carbon operations, potentially reducing energy consumption by over 30%.
(3) AI Empowerment Drives New Industry Development
In recent years, breakthroughs in artificial intelligence (AI) have significantly enhanced the
underlying R&D efficiency of synthetic biology. In the field of synthetic biology technology
development, AI leverages big data iteration and database computations to perform data analysis, protein
design, pathway design, and simulation testing within modeling software. This can substantially reduce
early-stage R&D steps, identify more efficient strains, lower development costs, and promote new
industry growth.
(4) Policy Support Propels the Industry into a New Development Stage
Governments of major countries worldwide have gradually introduced supportive policies related to
synthetic biology. At the domestic level, since the “14th Five-Year Plan for Bioeconomy Development”
explicitly identified biomanufacturing as a strategic emerging industry within the bioeconomy, relevant
authorities have successively formulated and issued a series of supportive and guiding policy documents.
The promulgation and implementation of national policies have outlined a clear and broad market
prospect for the development of the biomanufacturing industry.
Driven by strengthened policy support, growing market demand, and continuous technological
advancement, China’s synthetic biology industry is expected to continuously develop new application
scenarios and enter a new stage of growth.
As a leading enterprise in China’s biomanufacturing industry, MEIHUABIO has long been
dedicated to technological breakthroughs and industrialization in the field of amino acids. The company
has established a complete synthetic biology industry chain covering genome editing, strain
development, fermentation optimization, extraction and separation, and end-use applications. Through
the acquisition of Kyowa Hakko’s amino acid and HMO businesses in Japan, the company has taken
initial steps in establishing overseas production bases, while extending its industry chain into
pharmaceutical amino acids and high-end nutrition. This not only significantly enhances the company’s
strategic competitiveness but also achieves deep integration with the very origins of the industry.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Kyowa Hakko is regarded as a pioneer of modern amino acid fermentation, with profound
influence in fermentation process development, strain breeding, and standards setting. By integrating
Kyowa Hakko’s resources, Meihua Bio inherits over 70 years of technological legacy in the amino acid
industry, gaining access to a robust portfolio of patents, strong brand influence, and a multi-regional
regulatory compliance system. This integration greatly strengthens the company’s comprehensive
competitiveness and industrial synergy in the global synthetic biology sector.
In terms of its core business, the Company has established a diversified product portfolio covering
multiple amino acids and polysaccharides, including lysine, threonine, valine, monosodium glutamate
(MSG), and xanthan gum. This portfolio enables supply across a range of end markets such as feed, food,
and pharmaceuticals, and has created an industry structure that balances both technological and cost
advantages. Through the acquisition of Kyowa Hakko’s business, the Company has further obtained
amino acid products including arginine, tryptophan, histidine, serine, ornithine, and citrulline.
Leveraging its synthetic biology platform and large-scale production capabilities, the Company is
advancing the mass production and commercialization of new amino acid products.
In addition, the acquisition of Kyowa Hakko has provided the Company with Asia’s only
large-scale HMO production facility, marking its successful entry into the global functional nutrition
market. As key components for infant nutrition and adult intestinal health, HMOs represent a market of
significant potential with high entry barriers. Based on its synthetic biology capabilities, the Company is
accelerating the industrialization of HMOs and other functional oligosaccharides, thereby expanding a
high-value product portfolio centered on “amino acids – polysaccharides – HMOs.”
The Company has established systematic capabilities in strain development, metabolic pathway
optimization, process scale-up, and intelligent manufacturing, forming a platform-based technology
system applicable across product categories. This system has significantly enhanced unit productivity,
reduced resource consumption, and improved adaptability to diverse production processes. It provides
robust technical support for maintaining leadership in existing markets while enabling the efficient
development and commercialization of new products.
Looking forward, the Company will continue to position synthetic biology as its core technological
driver, promote the continuous upgrading of its technology platforms, and broaden its industrial scope.
By leveraging its strengths in process integration and large-scale manufacturing, the Company will
deepen cooperation with global research institutions and strategic partners, actively pursue
high-potential emerging raw material opportunities, and advance its strategic transformation from an
“amino acid leader” to a “biomanufacturing ecosystem builder.”
(II) Core Business Overview
As a global leader in the large-scale production of amino acids through synthetic biology, Meihua
Bio has developed a diversified product portfolio covering animal nutrition amino acids (such as lysine,
threonine, and valine), flavor enhancers (such as monosodium glutamate and disodium inosinate),
pharmaceutical-grade amino acids (such as glutamine, proline, arginine, histidine, leucine, citrulline, and
ornithine), as well as bulk by-products (such as corn germ and protein powder).
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
On July 1, 2025, the Company completed the acquisition of food amino acids, pharmaceutical
amino acids, HMO businesses, and related assets from Kyowa Hakko, Japan. This transaction extends
the Company’s industrial chain into the downstream high value-added pharmaceutical amino acids
market, expands its pharmaceutical amino acid product pipeline, and adds an HMO product portfolio. At
the same time, the Company has obtained multiple production and operational entities in Shanghai,
Thailand, and North America, thereby advancing the implementation of its international expansion
strategy.
During the reporting period, the Company’s principal products included:
? Animal Nutrition Amino Acids: lysine, threonine, tryptophan, feed-grade valine, MSG
by-products, as well as starch by-products such as feed fibers, corn germ, and microbial protein.
? Food Taste-Enhancement Products: glutamic acid, monosodium glutamate (MSG), disodium
inosinate, disodium guanylate, food-grade xanthan gum, trehalose, and natamycin.
? Pharmaceutical-Grade Amino Acids and Related Products: glutamine, proline, leucine,
isoleucine, pharmaceutical-grade valine, inosine, guanosine, adenosine, pullulan polysaccharide, and
vitamin B2.
? Other Products: industrial-grade xanthan gum and bio-organic fertilizers.
Note: As the Company completed the acquisition of Kyowa Hakko’s amino acid and related businesses on July 1,
The Company adopts an integrated business model encompassing research and development,
production, and sales.
During the reporting period, there were no significant changes in the Company’s business model.
(III) Industry Overview of Major Products
(1) Corn
Corn is the core raw material for the Company’s principal products, accounting for more than 50%
of total raw material consumption. Fluctuations in corn prices have a direct impact on the Company’s
production costs. The corn market is influenced by multiple factors, including the prices of substitute
feed grains (such as soybeans, wheat, and barley), demand from downstream livestock farming, as well
as international market dynamics.
In the first half of 2025, corn supply tightened structurally due to accelerated sales progress at the
grassroots level, a year-on-year decline in regional inventories, and lower grain imports. This led to a
general upward trend in market prices. By the end of June, purchase prices in Shandong had risen to the
range of RMB 2,440–2,544 per ton, representing an increase of RMB 330–490 per ton compared with
the end of December 2024. In Northeast China, purchase prices rose to RMB 2,250–2,310 per ton, up
RMB 180–370 per ton over the same period. The national average corn price for the first half of 2025
stood at RMB 2,227 per ton, representing a year-on-year decrease of 6.78%.
The Company primarily procures corn domestically. Relying on its production bases located in
Tongliao, Xinjiang, and Baicheng—regions that are among China’s major corn-producing areas—the
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Company has established a diversified and flexible procurement system. This system integrates
entrusted purchase and storage, market-based sourcing, participation in state grain reserve auctions, and
direct procurement from farmers.
The Company fully leverages the geographical advantages and market characteristics of its
production bases to implement differentiated procurement strategies. For the Tongliao and Baicheng
bases, which are located close to the major corn-producing areas in Northeast China and benefit from a
longer procurement season, the Company adopts a flexible mix of procurement models on top of
entrusted purchase and storage. This approach effectively offsets storage costs while enabling the
Company to capture market opportunities. At the Xinjiang base, given its unique geographical
conditions, the Company focuses on a concentrated entrusted purchase and storage model to ensure
stable supply. Typically, procurement and storage activities are concentrated between late Q3 and early
Q4 each year.
Overall, the Company has established a comprehensive market monitoring mechanism that closely
tracks supply-demand dynamics, price trends, and policy directions. Based on these insights, the
Company dynamically optimizes the scale and proportion of various procurement channels. Through its
diversified procurement models and adaptive adjustment capabilities, the Company has significantly
enhanced its ability to mitigate the impact of corn price volatility.
Figure 1 National Average Corn Price Trend (2021–2025)
Source: Boyar Intelligence
(2) Soybean Meal
According to data from Boyar, the average domestic spot price of soybean meal in the first half of
decrease of 5.66%. Driven by weather speculation and tariff factors, soybean meal prices are expected to
trend upward with fluctuations in the second half of the year.
The rise in soybean meal prices is relatively favorable for the Company’s performance. First,
soybeans and corn are the two primary feed grains, and their prices are somewhat correlated. Currently,
the soybean-to-corn price ratio is at a low level; if soybean prices increase, corn prices are likely to
follow. As corn is a key cost component for amino acid fermentation enterprises, rising corn prices allow
the Company to pass on costs downstream, thereby achieving price-aligned sales of its products. Second,
since 2021, the Ministry of Agriculture has promoted the partial substitution of soybean meal in feed
formulations to optimize feed composition. By supplementing exogenous amino acids to maintain amino
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
acid balance in animals, reliance on bulk raw materials such as soybean meal is reduced. With soybean
meal prices expected to rise, this substitution process is likely to accelerate, increasing demand for
feed-grade amino acids and supporting higher amino acid prices.
In addition, the Company’s corn by-products (such as protein powder) are protein-based feed
materials, and their prices are influenced by soybean meal price movements. An increase in soybean
meal prices is expected to push up the prices of the Company’s corn by-products, potentially
contributing to profit growth.
Soymeal–Corn Price Spread, 2021–2025, Yuan/ton
Soymeal–Corn Price Average Soymeal Average Corn Price
Spread Price
Figure 2 Trend of Soymeal and Corn Prices and Their Spread, 2021–2025
Source: Boyar Intelligence
In recent years, sustained growth in downstream demand for amino acids has supported favorable
profitability among leading industry players. To further consolidate market share and capture
incremental demand opportunities, enterprises have undertaken new construction or expansion of amino
acid production lines, resulting in a temporary increase in industry supply. From a long-term perspective,
however, with demand continuing to grow, the amino acid industry remains on a positive development
trajectory.
(1) Lysine
According to data from Boyar, in the first half of 2025, the domestic lysine market was affected by
anti-dumping measures. For 98.5% lysine, production enterprises maintained a weak outlook for exports,
resulting in lower export volumes, increased supply pressure in the domestic market, and downward
adjustments in product quotations. In contrast, terminal consumption of 70% lysine continued to grow.
Supported by rising corn prices, producers stopped reducing quotations and began to lift prices, keeping
The data show that in the first half of the year, the average price of 98.5% lysine was RMB 9.11/kg,
representing a quarter-on-quarter decline of 16.73% and a year-on-year decline of 7.89%. The average
price of 70% lysine was RMB 5.39/kg, up 3.26% quarter-on-quarter and 1.32% year-on-year.
Overall, although the lysine market faced pressure from EU anti-dumping actions, with producers
beginning scheduled maintenance in the third quarter and downstream demand for 70% lysine gradually
recovering, its price is expected to maintain a moderately firm trend with slight upward adjustments.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(2) Threonine
According to Boyar, in the first half of 2025, the average domestic price of threonine was RMB
From January to May, exports of other amino alcohols slightly increased quarter-on-quarter. Producers
adopted bundled sales strategies to maintain price stability, and by the end of June, the quotation range
was RMB 9.6–9.9/kg. Given the relatively high export proportion and a balanced supply-demand
situation, threonine prices are expected to continue fluctuating in the near term.
During the first half of the year, production by mainstream domestic threonine manufacturers
remained stable, with strong export demand. This led to temporary tightness in the domestic market,
resulting in fluctuating prices. The industry continues to maintain a favorable profit margin.
(3) Valine
In the first half of 2025, domestic production of valine by mainstream manufacturers was generally
stable, although some producers suspended or shifted production, reducing the number of active
producers. Despite strong market demand, the market experienced a temporary supply surplus, and end
users built inventory as needed. According to Boyar, the average domestic price of valine in the first half
of the year was RMB 14.32/kg, up 5.68% quarter-on-quarter and down 6.10% year-on-year.
With continued growth in end-market demand, leading enterprises—leveraging scale and cost
advantages—are expected to further consolidate market share and actively expand into overseas markets,
which should increase industry concentration.
(4) Pharmaceutical Amino Acid Products
① Pre-Acquisition Pharmaceutical Amino Acids
Pharmaceutical amino acids, also referred to as medical-grade amino acids, primarily consisted of
crude amino acid products prior to the acquisition. These included L-glutamine, branched-chain amino
acids (L-isoleucine, L-valine, L-leucine), and L-proline, which were mainly used as upstream raw
materials for sports nutrition products, medical nutrition foods, and pharmaceuticals. Another segment
comprised pharmaceutical intermediate raw materials, including L-proline and nucleosides (inosine,
guanosine, adenosine), which served as upstream raw materials for medications addressing chronic
diseases such as hypertension, diabetes, and hepatitis B.
② Post-Closing Pharmaceutical Amino Acid Business
On November 22, 2024, the Company signed a Share and Asset Purchase Agreement with Kyowa
Hakko, and on July 1, 2025, successfully completed the acquisition and closing of Kyowa Hakko’s
food-grade amino acids, pharmaceutical amino acids, and HMO businesses and assets. Following the
closing, the Company’s pharmaceutical amino acid portfolio expanded beyond the pre-existing products
to include multiple new amino acid categories and strains, such as arginine, histidine, serine, citrulline,
ornithine, and hydroxyproline, along with over a dozen fermentation strains and related patents. From a
business structure perspective, the acquisition further extended the Company’s industrial chain. It
enhanced fermentation and purification capabilities for high value-added downstream pharmaceutical
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
amino acids and secured regulatory certifications, including GMP compliance and registrations for
amino acid APIs in multiple global markets.
Existing Amino Acid Products Amino Acids and Related Products After Transaction Completion
The downstream applications of pharmaceutical amino acids primarily span four major sectors and
ten sub-sectors:
Source: Third-party commercial due diligence report
Explanation of Significant Non-Core Business Additions During the Reporting Period
? Applicable √Not applicable
II. Discussion and Analysis of Business Performance
In the first half of 2025, the Company continued to increase investments in international expansion,
digitalization, organizational development, and R&D, enhancing production automation and intelligence,
refining operational and management processes, and continuously strengthening its core competitiveness.
During the reporting period, the Company achieved revenue of RMB 12.28 billion, representing a slight
year-on-year decrease of 2.87%. Net profit attributable to shareholders of the listed company reached
RMB 1.768 billion, up 19.96% year-on-year, while net profit attributable to shareholders excluding
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
non-recurring gains and losses amounted to RMB 1.628 billion, representing a year-on-year increase of
(MSG), 98% lysine, and feed-grade L-isoleucine, while 70% lysine experienced growth in both volume
and price, contributing to higher revenue and gross profit. At the same time, declines in major raw
material costs and improvements in production efficiency helped reduce overall production costs.
During the reporting period, the increase in gross profit of RMB 382 million contributed to the growth in
the Company’s net profit.
In 2025, building on prior global market research and strategic planning, the Company advanced
site selection assessments for key regions of its overseas greenfield investment projects and successfully
completed the closing of a strategically significant cross-border acquisition. This achievement
demonstrates that the Company’s global expansion has progressed from the strategic planning stage to
substantive operational implementation, marking tangible progress in its internationalization strategy
and opening a new chapter for overseas business development.
(1) Cross-Border Acquisition:
In November 2024, all parties to the transaction signed a Share and Asset Purchase Agreement (the
“Agreement”). In December of the same year, the Company formed a dedicated business integration
team by seconding core internal personnel. This team conducted a comprehensive review of existing
staff and operations, carried out market visits, and developed an operational improvement plan along
with benchmarking analysis. Pursuant to the Agreement and its related supplemental agreements, and as
all closing conditions were satisfied, the transaction was successfully closed on July 1, 2025. The
acquired assets and businesses have been consolidated under the Company’s wholly-owned Singapore
subsidiary, Plumino Precision Fermentation Holdings Pte. Ltd. (hereinafter “Plumino”). Procedures for
the equity transfer of the relevant domestic and overseas production and operating entities are currently
underway. The Company has also engaged professional institutions to conduct audits and evaluations of
the acquired assets to assess the impact of the transaction on the Company’s 2025 financial performance.
This cross-border acquisition is of significant strategic importance for both the Company and the
industry: 1) Intellectual Property: the Company has acquired more than 30 core patent families,
systematically addressing the global IP gaps of Chinese enterprises in synthetic biology and amino acid
fermentation, thereby enhancing international competitiveness and facilitating entry into key regulated
markets; 2) Product Portfolio: the acquisition adds new amino acid categories and strains, including
arginine, histidine, serine, citrulline, ornithine, and hydroxyproline, further expanding the Company’s
product pipeline; 3) Production Bases: three pharmaceutical amino acid production bases in Shanghai,
Thailand, and North America have been added, enabling overseas production, closer proximity to end
markets, and strengthened global competitiveness; 4) Industrial Chain: the acquisition extends the
Company’s industrial chain, enhancing downstream fermentation and purification capabilities for
high-value pharmaceutical amino acids, while securing GMP certification and multi-market registrations
for amino acid APIs; 5) HMO Pipeline: the Company also obtained an HMO production facility in
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Thailand with relevant operational and certification qualifications, directly enhancing China’s position in
the global high-end nutritional ingredient supply chain.
For the acquired pharmaceutical-grade amino acid assets, the company will leverage their
multi-market registrations overseas to focus on expanding its share in high-quality, high-value
international markets; for the food-grade amino acids, the company will capitalize on local production
advantages and technological strengths. By enhancing capacity utilization, improving operational
efficiency, and reducing costs, the company aims to strengthen profitability.
Following the completion of the transaction, the company’s global footprint is as follows:
(2) Greenfield Investments:
The company continues to advance its overseas greenfield investment site selection efforts. During
the reporting period, the overseas project team conducted on-site assessments in regions including
Central Asia, evaluating key production and operational factors such as raw materials, energy and
chemical auxiliaries, transportation, and business environment. Moving forward, the company will
conduct comparative analyses across multiple dimensions for priority target regions to determine the
location, product types, and scale of its greenfield investments.
The company’s export ratio has remained consistently above 30%, providing a solid foundation for
international market expansion while also requiring navigation of increasingly complex global supply
chain environments. Leveraging its multi-regional presence, continuous R&D accumulation, integrated
biomanufacturing system, and full-spectrum amino acid product portfolio, the company possesses both
the capability and confidence to respond effectively to complex market dynamics.
By thoroughly studying international trade regulations, forming a specialized team to handle
disputes, and maintaining close collaboration with overseas clients, the company successfully reduced
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
the final EU anti-dumping duty on lysine from an initial 84.8% to 47.7%—a 37.1 percentage point
decrease, representing the lowest rate among domestic producers. This achievement not only directly
enhances the price competitiveness of the company’s products but also demonstrates its professional
expertise and resolute determination in addressing international trade disputes.
Building on prior experience and continuously optimizing internal management, the company has
established a more flexible and efficient operational system. In terms of capacity layout, the completion
of overseas acquisitions has enabled an initial global production base presence; leveraging the
experience of domestic production facilities, the company can maximize the supporting capabilities of
high-end overseas plants. In product R&D, cross-category multi-technology platforms are utilized to
align with international market demand, increase innovation investment, and launch higher-value
products to ascend the value chain. In supply chain management, long-term stable partnerships with
global suppliers ensure the stability and cost-effectiveness of raw material procurement. In market
operations, the company has acquired production and sales entities in Singapore, Germany, Japan, North
America, and other regions, allowing precise alignment with regional market demand and enhancing its
global supply chain position in amino acids and high-end nutritional ingredients.
From responding to anti-dumping investigations to executing a global expansion strategy, the
company’s ability to compete on a global scale has been significantly strengthened, positioning it to
seize strategic opportunities arising from the restructuring of global industry chains.
With the strategic goal of becoming a leading synthetic biology enterprise, the company has
consistently focused on the high-quality development of its core amino acid business. For key products
with strong cost advantages, robust technological iteration capabilities, and significant market growth
potential, the company has decisively advanced capacity upgrades, continually consolidating its
industry-leading position. This has significantly enhanced scale barriers, further strengthening market
dominance and overall competitiveness.
In the first half of 2025, the company invested RMB 1.087 billion in projects. To improve resource
utilization, the Production Technology Institute and various production bases optimized production
layouts and established a dynamic capacity adjustment mechanism. During the reporting period, the
Tongliao MSG capacity upgrade project reached full production and is now one of the largest single-line
MSG production capacities globally. Prior to commissioning new lines, some older production lines
were decommissioned for technical upgrades due to aging equipment and low resource efficiency, and
have since been converted to produce other high-value products. The Jilin lysine project is under
construction and is expected to commence trial production in the fourth quarter of this year. The
successful implementation of these high-quality projects contributes to the expansion of the company’s
operational scale.
To meet diverse customer needs and enrich the product portfolio, additional high-value
projects—including upgrades for valine, tryptophan, arginine, histidine, and premium-grade xanthan
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
gum—are currently in the planning stage, aimed at further enhancing the company’s overall
competitiveness.
and Operations Driving High-Quality Development
During the reporting period, the company leveraged its digital and intelligent transformation as a
strategic pivot, continuously advancing the intelligent upgrade of its operational management systems.
The effects of this transformation have begun to materialize.
The MES system’s standardized functions have been implemented at the Jilin, Xinjiang, and
Tongliao bases, while differentiated functions have been developed and are scheduled for rollout in the
third quarter. Meanwhile, the procurement management information system project has completed
tendering and contract signing and is planned to go live in the fourth quarter.
By fully integrating digital intelligence into quality, safety, process, equipment, and environmental
modules, the MES system shifts production management from reactive remediation to proactive warning
and real-time control, enabling online visibility and transparency across all production stages.
Automation significantly reduces non-standard human operations, thereby lowering management
complexity.
Through the dual engines of technology and management, the company has built a highly efficient,
responsive, and transparent operational system, continuously optimizing operational standards to
improve efficiency and reduce costs. In the first half of 2025, inventory turnover days were 50, and
accounts receivable turnover days were 9, reflecting efficient operations.
By combining informatization, standardization, automation, and refined management, the company
is establishing a high-end biomanufacturing platform, effectively driving high-quality development.
Construction of Intellectual Property Barriers
In the first half of 2025, the company continued to increase its R&D investment, systematically
advancing the industrialization of synthetic biology technology with a focus on core technology platform
development, strain iteration and optimization, and multi-category innovative product development.
These efforts further consolidate the company’s technological leadership within the industry. During the
reporting period, the company concentrated on chassis strain construction, metabolic pathway design,
process optimization, and differentiated product portfolio development, effectively enhancing overall
R&D efficiency and the conversion of technological achievements into practical applications.
To enhance the efficiency of translating R&D outcomes into industrialized production, the
company has continuously refined its “R&D–pilot–industrial” linkage mechanism and systematically
deployed pilot verification platforms. Phase-wise pilot systems are being established across multiple
production bases to create a verification network covering multiple products and process pathways,
enabling integrated testing for strain construction, process scale-up, and equipment adaptation. This
approach further shortens R&D cycles, reduces process risks, and improves production controllability.
Among these, the Jilin pilot R&D platform, established as the first benchmark project, was completed
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
and put into operation during the reporting period. Equipped with multi-specification pilot fermentation
systems and complete extraction and purification equipment, it meets the small-scale scale-up
requirements for amino acids, polysaccharides, and other products. The platform has demonstrated
significant effectiveness in new strain validation, process maturity assessment, and compression of
debugging cycles, providing strong support for the rapid commercialization of subsequent products.
In terms of intellectual property, the company has completed the integration of Kyowa Hakko
following the acquisition. As a pioneer in the amino acid industry, Kyowa Hakko possesses extensive
technical expertise and international registration resources. The company has introduced multiple new
product categories and core strains, including arginine, tryptophan, histidine, serine, citrulline, ornithine,
and hydroxyproline, and has obtained key patents covering strains, processes, and applications,
significantly broadening the company’s technological coverage in critical areas of synthetic biology.
Leveraging Kyowa Hakko’s mature global registration and compliance system, the company will
accelerate market access and commercialization of new products worldwide, further consolidating its
strategic leadership in global biomanufacturing.
Looking ahead, the company will continue to strengthen the allocation of R&D resources and
optimize its organizational structure, enhancing both the depth and breadth of its platform-based
technological capabilities. Efforts will focus on areas such as strain metabolic modeling, process
optimization modeling, fermentation production modeling, and integration of industrial-chain data,
driving systematic upgrades to its technology. Leveraging the core data resources accumulated from
large-scale production, the company will incorporate artificial intelligence tools to establish a
data-driven intelligent R&D model, accelerating technology evolution cycles and product iteration
efficiency.
In addition, the company will reinforce the construction of its pilot platform network, drawing on
the mature experience of its domestic production bases and leveraging the capabilities of its high-end
overseas facilities. By deepening global collaboration across production, academia, and research, the
company aims to accelerate the introduction of cutting-edge products and the translation of R&D
achievements, continuously enhancing its global competitiveness and long-term technological leadership
in the field of synthetic biology.
Significant changes in the company’s operations during the reporting period, as well as events that
occurred during the period that have had, or are expected to have, a material impact on the
company’s operations in the future
? Applicable √Not applicable
III. Analysis of Core Competitiveness during the Reporting Period
√ Applicable ?Not applicable
(I) Diversified Product Portfolio, Scale Advantages, and Global Layout Driving Robust
Performance
As a global leader in the amino acid industry, the company has continuously developed a
multi-category industry structure centered on amino acids. Leveraging its strengths in synthetic biology,
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
it has established a diversified product portfolio covering animal nutrition amino acids, flavor enhancers,
pharmaceutical-grade amino acids, and colloidal polysaccharides. The company adheres to a dual
approach of “refining quality” and “expanding scale.” By closely monitoring market trends and tracking
demand shifts across downstream sectors such as feed and livestock, food processing, and
biopharmaceuticals, it dynamically optimizes resource allocation across product lines and steadily
expands production capacity for its core products. Currently, the company ranks first globally in lysine
and threonine production capacity, second in monosodium glutamate (MSG) production, and holds
leading positions worldwide in other products, including disodium 5′-ribonucleotides (I+G),
pharmaceutical-grade amino acids, and colloidal polysaccharides. With ongoing capacity expansion
projects, the company’s market-leading positions continue to be further consolidated.
In addition, the company has accelerated its overseas capacity expansion, successfully completing
the acquisition and handover of Kyowa Hakko’s related food amino acids, pharmaceutical-grade amino
acids, and HMO business and assets on July 1, 2025. Through this transaction, the company has
extended its industrial chain into the downstream high-value pharmaceutical-grade amino acid market,
further expanded its amino acid product portfolio, and acquired multiple production and operating
entities in Shanghai, Thailand, and North America. This milestone marks the realization of the
company’s overseas expansion strategy and strengthens its ability to mitigate regional market risks
through an internationalized production footprint.
The diversified and balanced product portfolio, significant scale advantages, and global footprint
not only ensure the company’s stable performance growth but also strengthen operational resilience,
substantially enhancing its capacity to withstand cyclical fluctuations in the industry.
(II) Integrated, End-to-End Industrial Chain and Efficient Operations Drive Cost
Competitiveness
Leveraging its strategic presence in core raw material production regions and a comprehensive
resource-recycling system, the company has established a significant cost advantage within the industry,
which it continues to consolidate through meticulous operational management. Its production bases are
located near key raw materials such as corn and coal, enabling the company to build a closed-loop
industrial chain covering raw material processing, self-supplied steam, product manufacturing,
wastewater treatment, and bio-organic fertilizer production. This integrated approach facilitates
hierarchical energy reuse and full-value utilization of by-products, maintaining resource efficiency at an
industry-leading level.
Benefiting from proximity to raw material sources, the company has developed a diversified and
flexible procurement system that includes collection and storage on behalf of suppliers, market
purchases, participation in state grain auctions, and direct sourcing from farmers, providing a marked
advantage in procurement costs. In terms of operations, the company has continuously advanced the
standardization of its entire procurement-production-sales chain, systematically executing and
optimizing processes to substantially improve management efficiency. During the reporting period,
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
inventory turnover days remained around 50, while the majority of sales were conducted on a
cash-on-delivery or prepayment basis, keeping accounts receivable turnover at approximately 9 days.
By deeply integrating geographic advantages, industrial chain synergies, and lean management, the
company has built a highly efficient operational system that reduces overall management costs and
ensures robust operating cash flow, giving it a competitive edge in unit production costs compared with
industry peers.
(III) Sustained R&D Investment and Strong Industrialization Capabilities Establish
Industry-Leading Technical Metrics
Relying on continuous R&D investment and long-term accumulation in the fields of
biofermentation and synthetic biology, the company has built a multi-category, platform-based
technology system centered on synthetic biology. This system covers high-value raw materials such as
amino acids, polysaccharides, and HMOs, and features cross-category technology reuse and modular
development mechanisms. In terms of commercialization efficiency, strain stability, energy consumption
control, and comprehensive resource utilization, the company ranks at the forefront of the industry,
creating a systematic capability that combines both technological barriers and cost advantages.
In recent years, the company has continuously expanded its R&D scale and increased investment in
the application of synthetic biology technologies. Leveraging gene-editing and metabolic engineering
platforms as well as advanced strain development capabilities, the company has steadily improved the
iteration efficiency of its core production strains. It possesses leading core technologies and intellectual
property in strain modification, fermentation, extraction, and by-product valorization. On the
industrialization front, the company benefits from a full “R&D–pilot–engineering–scale production”
chain, enabling rapid conversion of laboratory results into commercial value.
Moreover, the company has independent engineering design capabilities, an experienced
engineering team, a dedicated production technology research institute, and production bases equipped
with internationally advanced manufacturing equipment. This ensures precise and stable process
parameters, excellent energy efficiency, and drives full-chain process innovation, continuously
improving resource efficiency while reducing energy consumption. The synergistic effect of these
advantages ensures that the company maintains industry-leading performance in key technical metrics,
including product yield, quality, and production efficiency.
(IV) A Culture of “Collective Management and Shared Value Creation” as a Key Driver of
Business Success
For many years, the company has adhered to an organizational culture of “All Employees as
Operators, Create and Share,” leveraging comprehensive incentive mechanisms and performance-driven
systems to support the achievement of business objectives and strategic development. In 2017, the
company launched its first employee stock ownership plan and has continuously refined and
implemented it, establishing a normalized mechanism. Since 2021, five consecutive phases of the
employee stock ownership plan have been executed, complemented by a diversified bonus and incentive
system—including bonus pools, project-based rewards, and performance assessments—targeted at
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
department leaders and key business personnel. This approach tightly aligns organizational development
strategies with individual career growth, fostering a culture of co-creation, sharing, and mutual success.
The company operates on a positive cycle of responsibility–performance–incentive, rewarding
managers and core staff who demonstrate accountability and outstanding performance. By linking high
performance to high rewards, the company stimulates initiative and value creation, ensuring that
individual contributions are closely aligned with organizational goals and supporting both strategic
development and operational objectives.
Through years of practice, the company has established a multi-tiered, multi-dimensional
performance-driven system that complements its co-creation and sharing culture. This system not only
effectively supports the realization of strategic objectives and secures the stability of the core
management team but also constitutes a distinctive long-term incentive mechanism, promoting
reciprocal empowerment and shared growth between the company and its employees.
IV. Major Business Performance during the Reporting Period
(I) Analysis of Main Business
Unit: yuan Currency: RMB
Amount for the
Amount for the current
Item corresponding period in Change (%)
period
the previous year
Revenue 12,280,450,603.53 12,642,718,053.37 -2.87
Operating costs 9,433,353,240.09 10,177,206,263.13 -7.31
Selling expenses 167,760,792.02 204,453,466.84 -17.95
General and administrative expenses 469,433,561.57 554,506,366.51 -15.34
Financial expenses -20,660,319.63 -75,236,544.94 72.54
R&D expenses 199,958,697.93 180,479,234.74 10.79
Net cash flows from operating
activities
Net cash flows from investment
-2,943,297,595.88 -2,093,397,939.98 -40.60
activities
Net cash flows from financing
-810,148,442.73 -1,456,524,257.04 44.38
activities
Reasons for Change in Revenue: During the Reporting Period, the Company’s revenue totaled
RMB 12.28 billion, down 2.87% year-on-year, main reasons: despite increased sales of MSG and
L-isoleucine due to higher production capacity at subsidiaries, and growth in both volume and price of
including MSG, xanthan gum, and L-threonine, declined, leading to a decrease in core business revenue.
Reasons for Change in Operating Costs: During the Reporting Period, the company’s operating
costs totaled RMB 9.433 billion, down 7.31% year-on-year, main reasons: while increased sales of key
products such as MSG, L-isoleucine, and L-lysine drove up the cost of sales, the overall decline in raw
material costs and improved production efficiency led to lower manufacturing costs, resulting in a
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
decrease in total operating expenses.
Reasons for Change in Selling Expenses: During the Reporting Period, the Company’s selling
expenses dropped by 17.95% year-on-year. Main reasons: a reduction in external warehouse transfers,
lower freight rates that reduced transportation expenses, decreased consulting and related expenditures
during the period, and lower personnel costs for sales staff.
Reasons for Change in Administrative Expenses: During the Reporting Period, the company’s
administrative expenses decreased by 15.34% year-on-year, main reasons: reduced consulting and
related expenditures during the period, as well as lower personnel costs.
Reasons for Change in Financial Expenses: During the Reporting Period, the company’s financial
expenses increased by 72.54% year-on-year, main reasons: both interest income and foreign exchange
gains declined during the period.
Reasons for Change in R&D Expenses: During the Reporting Period, the Company’s R&D
expenses increased by 10.79% year-on-year. Main reasons: The Company increased its R&D investment
during the period.
Reasons for Change in Net Cash Flows from Operating Activities: During the Reporting Period, the
net cash flow generated from the company’s operating activities increased by 3.44% year-on-year, main
reasons: although product sales prices declined, reducing revenue, the drop in raw material market prices
increased profits, thereby boosting cash flow from operating activities compared with the same period
last year.
Reasons for Change in Net Cash Flows from Investment Activities: During the Reporting Period,
the Company’s net cash flows from investment activities dropped by 40.6% year-on-year. Main reasons:
As a result of increased external investment in this period.
Reasons for Change in Net Cash Flows from Financing Activities: During the Reporting Period, the
Company’s net cash flows from financing activities increased by 44.38% year-on-year. Main reasons:
decrease of repayment of borrowings and share repurchases during the period.
or profit sources during the Reporting Period
? Applicable √ Not applicable
(II) Explanation of Significant Changes in Profit Due to Non-Core Business
? Applicable √ Not applicable
(III) Analysis of Assets and Liabilities
√Applicable □Not applicable
Unit: yuan
Change
Amount as at the
Amount as at the Percentage Percentage from the
end of the
Item end of the in total in total previous Explanation
previous
Reporting Period assets (%) assets (%) reporting
reporting period
period (%)
Monetary fund 2,913,757,715.41 12.14 4,561,056,193.96 19.16 -36.12 This was mainly
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
due to an increase in
the purchase of
wealth management
products during the
period.
This was mainly
due to an increase in
Trading
the purchase of
Financial 1,397,826,972.26 5.82 312,033,611.07 1.31 347.97
wealth management
Assets
products during the
period.
Increase in the
Accounts amount held to
receivable 18,045,534.34 0.08 26,723,054.99 0.11 -32.47 collect contractual
financing cash flows during
the current period.
This was due to a
Prepaid decrease in prepaid
accounts material payments
during the period.
This was due to the
Other collection of
receivables receivables during
the period.
This was due to the
Non-current maturity of
assets due 108,345,222.59 0.45 182,257,027.81 0.77 -40.55 long-term time
within one year deposits during the
period.
This was due to an
increase in advance
Other Current
Assets
external investments
during the period.
New construction
Construction in projects initiated
progress during the current
period.
This was due to the
Right-of-use expiration of
assets right-of-use assets
during the period.
Derivative This was due to the
Not
financial 297,500.00 settlement of wealth
Applicable
liabilities management
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
products during the
period.
This was due to the
payment of
Other Payables 242,540,793.08 1.01 448,115,137.98 1.88 -45.88 litigation settlement
fees during the
period.
This was due to a
decrease in advance
Other current
liabilities
tax during the
period.
Losses from fair
Other value changes in
Comprehensive -153,671,324.15 -0.64 -55,004,961.46 -0.23 179.38 equity instruments
Income during the current
period.
Other information
None
√ Applicable ?Not applicable
(1).Asset size
The Company’s overseas assets reached 1,954,576,957.78 (unit: yuan, currency: RMB), accounting for
(2).Explanation of a high proportion of overseas assets
? Applicable √ Not applicable
Other information
None
√ Applicable ?Not applicable
Unit: Yuan
Item Book value Reasons for restriction
For details, see Section 8 of the Financial Report,
Monetary fund 190,704,256.91
Note 7, Note 1.
Fixed assets 373,067,063.83 Mortgage
Intangible assets 26,785,445.73 Mortgage
Total 590,556,766.47
? Applicable √ Not applicable
(IV) Analysis of Investment
√ Applicable ?Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Unit: Yuan
Proportion Book balance
of
Investee shareholding
Opening balance Increase Decrease Closing balance
in investee
(%)
Bank of Tibet 4.2414 157,000,000.00 157,000,000.00
AIM Vaccine Corporation 4.1286 284,294,280.00 113,759,630.00 170,534,650.00
Tongliao Desheng Bio-tech
Co., Ltd.
Total 448,169,219.88 114,682,983.98 333,486,235.90
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1).Significant equity investment
? Applicable √ Not applicable
(2).Significant non-equity investment
? Applicable √ Not applicable
(3).Financial assets measured at fair value
√ Applicable ?Not applicable
Unit: yuan Currency: RMB
Impairment
Gains or losses on
Accumulated fair accrued Sales/repurchase
changes in fair Purchase amount for
Asset type Opening amount value changes during the amount for the Other changes Closing amount
value for the the Reporting Period
included in equity Reporting Reporting Period
Reporting Period
Period
Trust
products
Private
equity
Derivatives -1,005,000.00 -1,473,200.00 468,200.00
Others 749,182,180.81 -83,021,437.46 -178,465,350.00 -32.11 9,088,717,290.18 8,350,772,364.82 -8,677,552.76 1,395,428,148.06
Total 780,050,946.06 -82,019,158.85 -178,465,350.00 -32.11 9,595,367,290.18 8,540,846,200.14 -8,677,552.76 1,743,875,356.60
Securities investment
? Applicable √ Not applicable
Explanation of securities investment
? Applicable √ Not applicable
Private equity investment
? Applicable √ Not applicable
Derivatives investment
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
? Applicable √ Not applicable
(V) Sale of Material Assets and Equity
? Applicable √ Not applicable
(VI) Analysis of Major Holding and Joint Stock Companies
√ Applicable ?Not applicable
Major subsidiaries and investees whose impact on the company’s net profit reaches or exceeds 10%
√ Applicable ?Not applicable
Unit: 100 million yuan, Currency: RMB
Registered Operating
Company Name Company Type Main Business Total Assets Net Assets Operating Profit Net Profit
Capital Revenue
Production and sales of MSG and amino
Tongliao Meihua Subsidiary 18.00 77.91 57.51 50.85 6.24 5.28
acids
Production and sales of MSG and amino
Xinjiang Meihua Subsidiary 25.00 66.71 56.77 28.29 6.87 5.79
acids
Production and sales of MSG and amino
Jilin Meihua Subsidiary 20.00 69.21 38.84 33.92 4.98 4.21
acids
Acquisitions and disposals of subsidiaries during the reporting period
? Applicable √ Not applicable
Other explanations
? Applicable √ Not applicable
(VII) Structured Entities Controlled by the Company
? Applicable √ Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
V. Other Disclosures
(I) Potential Risks
√ Applicable ?Not applicable
In the past three years, the company’s overseas main business sales revenue were 8.65 billion yuan,
main business revenue, respectively. Revenue from overseas operations may be exposed to the following
risks:
(1) Foreign exchange fluctuation risk
As a company primarily operating in the Chinese market, most of the company’s transactions are
settled in RMB. However, the Company remains exposed to the risk of exchange rate fluctuations for
foreign currency assets held, foreign currency liabilities assumed and foreign currency transactions that
may occur in the future, which are primarily denominated in U.S. dollars. To effectively manage
exchange rate risk, the finance department has established a robust foreign exchange risk monitoring
system, adopting measures such as dynamically adjusting the scale of foreign currency transactions. At
the same time, the company uses financial derivatives for hedging purposes. Nevertheless, if exchange
rate volatility intensifies and the company fails to properly match its foreign trade activities with its
forward settlement and purchase arrangements, it may negatively affect the company’s operating
performance.
(2) Ongoing Overseas Anti-Dumping Investigations on Chinese Products
① On May 23, 2024, the European Commission announced the initiation of an anti-dumping
investigation into lysine originating from China. On July 11, 2025, the European Commission
announced the final anti-dumping ruling on lysine exports from China, imposing a 47.7% tariff (the
minimum domestic rate) on the company’s lysine products exported to the EU, representing a significant
company’s subsequent EU exports, the imposition of duties may still have some impact on the
company’s performance.
② On December 19, 2024, the European Commission announced the initiation of an anti-dumping
investigation on Valine originating from China, following a complaint from EU enterprises filed on
November 5, 2024. On July 17, 2025, the European Commission announced a preliminary anti-dumping
ruling on valine (Valine) originating from China, under which the company’s wholly-owned subsidiaries,
Xinjiang Meihua and Tongliao Meihua, are subject to a 42.8% anti-dumping tariff.
③ On December 27, 2024, the Brazilian Ministry of Development, Industry, Trade, and Services
published the No.81 Notification of 2024, and initiated an anti-dumping investigation on lysine used in
animal feed, following a request from Brazilian domestic enterprises filed on July 18, 2024.
④ On June 18, 2025, in response to a petition submitted on May 28, 2025, by the Lysine Fair
Trade Coalition and its member companies—Archer Daniels Midland Company, CJ Bio America, Inc.,
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
and Evonik Corporation—the U.S. Department of Commerce announced the initiation of anti-dumping
and countervailing duty investigations on L-lysine imported from China.
⑤ On July 2, 2025, the Ministry of Industry and Trade of Vietnam announced the final affirmative
determination of the first sunset review on anti-dumping for monosodium glutamate (MSG) originating
from China, deciding to continue imposing anti-dumping duties for five years. The applicable duty rate
for the company is 4,622,472 VND per ton.
Overseas anti-dumping investigations and the imposition of high anti-dumping duties directly
impact the competitiveness of Chinese products abroad. If the anti-dumping duties imposed on the
company’s products are higher than those on other companies in the industry, this will directly reduce
the export volume of the company’s relevant products. Furthermore, the reduction in exports may lead to
intensified competition in the domestic market, further negatively impacting the company’s business
performance.
(3) National Trade Restrictions
On December 23, 2021, the U.S. president signed the Uyghur Forced Labor Prevention Act (the
“Act”), which restricts the export of products produced in Xinjiang to the U.S. The escalation of trade
tensions or other related issues between China and the U.S., including news and rumors, may introduce
uncertainty into export business and potentially impact the company’s operations. Additional trade
restrictions and sanctions would adversely affect the company’s business in overseas regions,
specifically including the imposition of tariffs and import taxes, setting quotas or other non-tariff
barriers, import and export restrictions, licensing limitations, sanctions, and other retaliatory measures.
These issues may negatively affect the company’s reputation and product sales, which in turn could
significantly harm business performance.
The company and its wholly-owned subsidiaries, Xinjiang Meihua and Tongliao Meihua, currently
enjoy preferential corporate income tax policies under the “Western Development” initiative. However,
changes in national tax policies may lead to adjustments or even the cancellation of existing preferential
treatments, which would directly increase the company’s tax burden and negatively impact its overall
financial performance. The company will continue to closely monitor tax policy developments and
adjust its tax planning strategies in a timely manner to mitigate potential impacts.
The company’s main business involves the research, development, production, and sale of amino
acid products, which are regulated by multiple government departments, including the State
Administration for Market Regulation, the Ministry of Industry and Information Technology, the
National Development and Reform Commission, and the Ministry of Science and Technology. Currently,
China has a well-established legal and regulatory framework, with strict controls over product
production licenses, quality management, and registration approvals. Additionally, major export markets,
such as the European Union, impose high product entry standards. However, as the industry evolves and
regulatory requirements continue to tighten, there is a potential risk that new restrictive policies may be
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
introduced by the government. Such changes could limit the production and use of the company’s
products, adversely affecting overall profitability. The company will closely monitor policy
developments and promptly adjust its business strategies to mitigate the potential impact of regulatory
changes.
The company’s wholly-owned subsidiaries, including Tongliao Meihua, Xinjiang Meihua, and Jilin
Meihua, are key pollution sources under environmental regulatory oversight. The company mainly
employs biological processes for production, generating wastewater, waste gases, and solid waste during
manufacturing. Any significant environmental pollution incident due to management oversight or
unforeseen circumstances could lead to administrative penalties, or even forced shutdowns and
rectification orders, severely disrupting operations. Furthermore, as national environmental regulations
become more stringent, the company may need to invest more in environmental protection measures to
comply with regulatory requirements, increasing operational costs. Additionally, the company’s
production processes are complex, involving multiple stages such as corn screening, soaking, amino acid
fermentation, and extraction. These processes require the use of high-pressure steam, multi-voltage
power supply systems, and specialized equipment, as well as the production, storage, and handling of
hazardous chemicals such as liquid ammonia and sulfuric acid. If safety management protocols are not
followed, employee safety awareness is insufficient, or equipment is not properly maintained, safety
incidents could occur, leading to potential injuries, property damage, and production disruptions,
negatively affecting the company’s performance.
According to the resolutions of the company’s 18th meeting of the 10th Board of Directors and the
production capacity, which may create downward pressure on product prices and affect the returns on
the company’s new projects. If the additional capacity fails to effectively eliminate outdated production
or if market demand grows slower than expected, increased competition and price pressure could result
in a negative impact on the company’s financial performance.
(1) Risk of Core Technology Leakage and Loss of Key Technical Personnel
The company has established significant technological advantages and extensive industrialization
experience in critical areas such as strain cultivation and fermentation control. Its market
competitiveness largely relies on core technologies and achievements accumulated through long-term
R&D efforts. To safeguard these assets, the company has taken a range of protective measures, including
establishing a dedicated R&D team with full-time researchers, signing long-term contracts with key
technical personnel, and offering competitive compensation packages. In addition, all employees with
access to core technologies are required to sign confidentiality agreements. Despite these precautions,
the possibility of technology leakage cannot be entirely ruled out, which could negatively impact the
company’s operating performance. Furthermore, with the rapid development of the domestic
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
biotechnology industry, high-end technical talent has become a scarce resource intensely sought after by
industry peers. A large-scale departure of technical staff would significantly hinder the company’s R&D
and production operations.
(2) Risk of Intellectual Property Protection
The company has established a comprehensive intellectual property protection system. Authorized
and pending patents cover the entire industrial chain, including strain cultivation, fermentation control,
separation and extraction, and extended applications. While the company adheres to independent
innovation and has built a sound R&D management framework, it faces dual risks in a competitive
landscape: the potential infringement of its own intellectual property by others, and the risk of
unintentionally violating third-party rights during R&D activities. Should a dispute arise or if the
company is found to have infringed upon others’ intellectual property—or if its own IP rights are
invalidated—this could directly impact the production and sale of related products, resulting in adverse
effects on the company’s business development.
The company’s cross-border M&A transaction was completed on July 1, 2025. After closing, the
following risks may still exist:
(1) Post-Acquisition Integration Risk
Upon completion, the company will expand its business portfolio to include food-grade amino acids,
pharmaceutical amino acids, and HMOs, and the addition of multiple overseas operating entities.
Integration efforts will span supply chain coordination, production process optimization, strain
development, and team integration. However, due to the inherent complexity of cross-border mergers
and acquisitions, the integration outcome remains uncertain and may affect the operational efficiency
and synergy realization of the combined businesses.
(2) Force Majeure Risk
Significant changes in laws and regulations, natural environments, or business conditions in the
regions where the overseas assets are located may adversely affect ongoing operations and the execution
of integration plans. The company will continue to assess relevant risks and take appropriate actions to
mitigate potential impacts and safeguard the interests of the company and its shareholders.
As of the end of the reporting period, Meng Qingshan, Wang Aijun, and He Jun collectively held
company has established a relatively sound corporate governance framework and internal control system,
with strict rules in place to regulate the conduct of controlling shareholders and actual controllers in
order to protect the interests of minority shareholders, there remains a risk that the actual controllers may
exercise influence—either directly or indirectly—through voting rights, management authority, or other
means. Such influence could affect the company’s strategic planning, operational decisions, personnel
appointments, and profit distribution, and may potentially harm the interests of the company and its
minority shareholders.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(II) Other Disclosure Matters
√ Applicable ?Not applicable
Enhancement, and Return Optimization” Action Plan
To thoroughly implement the requirements of the State Council’s Opinions on Further Improving
the Quality of Listed Companies and actively respond to the Shanghai Stock Exchange’s Initiative on
Conducting the “Quality Improvement, Efficiency Enhancement, and Return Optimization” Special
Action for Shanghai-listed Companies, the company disclosed the 2024 “Quality Improvement,
Efficiency Enhancement, and Return Optimization” Action Plan on August 21, 2024, and subsequently
released the 2024 Action Plan Implementation Evaluation Report on March 18, 2025. Over the past year,
the company has actively carried out and implemented the relevant work in accordance with the action
plan. The execution and implementation results of the action plan are assessed as follows:
(1) Focusing on Core Business and Continuously Improving Operational Quality
The company has consistently deepened its focus on the amino acids core business. Leveraging its
diversified portfolio, scale advantages, sustained R&D innovation, and refined management capabilities,
the company continuously enhances operational quality, demonstrating strong resilience and growth
potential. In the first half of 2025, the company achieved revenue of RMB 12.28 billion, a slight
year-on-year decline of 2.87%, and net profit attributable to shareholders of the listed company reached
RMB 1.768 billion, representing a year-on-year increase of 19.96%.
In terms of international expansion, the company has continued to advance site selection and
feasibility studies for overseas greenfield investment projects in key regions. On July 1, 2025, it
completed the acquisition and handover of food amino acids, pharmaceutical-grade amino acids, and
HMO business and assets from Kyowa Hakko. Through this transaction, the company extended its
industrial chain into the downstream high-value pharmaceutical-grade amino acid market, further
expanded its amino acid product pipeline, added HMO products, and acquired multiple production and
operating entities both domestically and abroad, marking substantial progress in its overseas expansion
strategy. This cross-border acquisition enables the company to rapidly access the global amino acids
market, strengthen its global competitiveness through overseas production bases and sales offices, and
leverage significant cost and supply chain advantages.
(2) Accelerating the Development of New-Quality Productivity and Promoting the
Commercialization of New Technologies and Products
To accelerate its strategic goal of becoming a leading enterprise in synthetic biology, the company
has continued to strengthen R&D investment and technological upgrades, with a focus on innovation in
the application of synthetic biology. In 2025, the company further advanced technology upgrades and
improved R&D efficiency. Through synthetic biology-based strain engineering, it accelerated strain
iteration and significantly enhanced metabolic efficiency, consolidating its technological leadership in
the industry. At the same time, the company has actively established an integrated
“R&D–pilot–industrialization” mechanism, systematically developing pilot testing platforms. The Jilin
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
pilot R&D platform, as the first benchmark project, has been completed and put into operation,
providing strong support for the rapid commercialization of subsequent products.
In terms of intellectual property, following the acquisition and integration of Kyowa Hakko, the
company has introduced several new product categories, including arginine, tryptophan, and histidine,
along with their core strains, and obtained key patents covering strains, processes, and applications. This
has significantly expanded the company’s technological footprint in critical areas of synthetic biology.
(3) Prioritizing Investor Returns and Safeguarding Shareholder Interests
The company places high importance on providing reasonable returns to investors and consistently
implements an active and stable profit distribution policy. This approach continuously enhances
shareholder returns, strengthens investor satisfaction, and protects shareholder rights.
In 2024, the company distributed a total cash dividend of RMB 1,699,225,261.53 (inclusive of tax).
Together with the cash used to repurchase and cancel shares totaling RMB 571 million in 2024, the total
amount returned to shareholders reached RMB 2.27 billion, representing approximately 83% of the net
profit attributable to shareholders of the listed company for the year.
(4) Strengthening Investor Communication and Actively Conveying Company Value
In 2025, the company continued to strictly fulfill its information disclosure obligations and
reinforced investor relations management. Guided by investor needs, it promptly communicated the
company’s operational and development status, effectively safeguarding investors’ right to be informed
and enhancing their long-term confidence in the company.
Regarding information disclosure, in the first half of 2025, the company prepared and published
two periodic reports and released 42 interim announcements, providing timely updates on business
operations. To improve readability, periodic reports were presented in a visual “one-page infographic”
format. Additionally, the company completed a comprehensive upgrade of its official website,
enhancing the quality and effectiveness of its disclosure practices.
In terms of investor relations, the company emphasizes and practices a “two-way communication”
approach. Over the past year, through channels such as shareholders’ meetings, earnings presentations,
strategy sessions, roadshows, on-site visits, and daily hotlines, emails, and the SSE e-Interactive
platform, the company has communicated its strategy, operations, and performance to investors in a
timely manner, actively listened to feedback, and addressed concerns, helping investors gain a
comprehensive understanding of the company and effectively conveying its value.
(5) Adhering to Standardized Operations and Enhancing Corporate Governance
The company strictly complies with the Company Law, Securities Law, and other relevant laws,
regulations, and regulatory requirements, maintaining efficient and standardized operations while
continuously improving its corporate governance system. Over the past year, the company has
strengthened its governance foundation by establishing a comprehensive and rational corporate
governance structure composed of the shareholders’ meeting, board of directors, board of supervisors,
and management team, creating a decision-making mechanism with clear responsibilities and
standardized operations. Multiple internal policies have been revised according to actual needs to further
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
optimize governance and enhance the internal control system. In response to regulatory requirements,
the company formulated the “Independent Directors’ Special Meeting System” and, through specialized
training and on-site investigations, ensured independent directors’ in-depth participation in major
company decisions, exercising supervision and advisory roles to effectively safeguard the rights and
interests of all shareholders.
In addition, the company has established a comprehensive ESG management system, integrating
sustainable development into daily operations and advancing ESG initiatives according to plan. In 2025,
the company’s Wind ESG rating improved from BBB to A, the Huazheng ESG rating rose from BB to A,
and the company was successfully included in Huazheng’s “Top 100 Most Improved ESG-Rated
A-Share Listed Companies in 2025,” demonstrating its outstanding performance in the field of
sustainable development.
(6) Strengthening the Responsibilities of the “Key Minority” and Enhancing Duty
Performance
The company places great emphasis on the duty performance and risk management of the “key
minority,” including controlling shareholders, directors, supervisors, and senior management. In
response to new regulatory requirements, the company actively encourages them to improve their
knowledge, participate in regulatory training, and enhance compliance awareness and duty performance
to effectively safeguard shareholder interests. Over the past year, the company organized specialized
training on the new Company Law and facilitated independent directors’ completion of subsequent
Shanghai Stock Exchange certifications and “Anti-Fraud Duty Performance” courses, strengthening
their professional competence and supervisory effectiveness.
Demonstrating confidence in the company’s development, a total of 35 directors, supervisors, and
core management personnel increased their holdings in the company by RMB 82.56 million in 2024 and
committed not to reduce their shares within five years, aligning management interests with those of
shareholders and boosting market confidence. In addition, the company has continuously improved its
medium- and long-term incentive mechanisms. Since 2021, it has consecutively implemented the
Employee Stock Ownership Plan for five years, reflecting the management team’s and core employees’
confidence in the company’s future, effectively motivating key personnel, and achieving deep alignment
between strategic goals and talent value, thereby promoting the company’s long-term development.
To promote the company’s high-quality development, effectively safeguard and protect investors’
legitimate rights and interests, and further strengthen investor confidence, the company has formulated
the 2025 “Enhance Quality, Improve Efficiency, and Return to Shareholders” Action Plan. This plan has
been reviewed and approved at the 20th meeting of the 10th Board of Directors. For detailed content,
please refer to the company’s relevant public disclosures.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Section 4. Corporate Governance, Environment, and Society
I. Changes in directors, supervisors, and officers
? Applicable √ Not applicable
Explanation of Changes in directors, supervisors, and officers
? Applicable √ Not applicable
II. Plans for Profit Distribution or the Conversion of Capital Reserve
Interim Profit Distribution and Capital Reserve to Share Capital Plan
Whether to distribute or convert No
Number of bonus shares per 10 shares 0
Cash dividend per 10 shares (including tax) 0
Number of shares for conversion per 10 shares (share) 0
Notes on the Profit Distribution or Capital Reserve Conversion Plan
Not Applicable
III. Information of the Company’s Share Incentive Plan, Employee Stock Ownership Plan, or
Other Staff Incentives and Their Impact
(I) Relevant equity incentive matters have already been disclosed in temporary announcements,
with no subsequent progress or changes in implementation.
? Applicable √ Not applicable
(II) Incentives that were not disclosed in the provisional announcement or made progress
subsequently
Share incentives
? Applicable √ Not applicable
Other information
? Applicable √ Not applicable
Employee stock ownership plan
√ Applicable ?Not applicable
The Company held the 14th meeting of the ninth board of directors and the first extraordinary
general meeting of 2021 on January 14, 2021, and February 1, 2021, respectively. At the meetings, the
Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2021 and its Summary, the
Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2021,
and the Proposal on Requesting Full Authorization from the Annual General Meeting for the Board of
Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were
deliberated and approved. For details, refer to the relevant announcements published by the Company on
the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on January 15, 2021, and February
The 2021 employee stock ownership plan expired on February 11, 2024. Based on confidence in
the Company’s sustainable development and the judgment of its share value, the extension of the plan
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
for an additional 36 months to February 11, 2027 was deliberated and approved at the first extraordinary
general meeting of 2024.
As of the end of the Reporting Period, there were 21,420,471 shares in the Company’s employee
stock ownership plan designated account, accounting for 0.75% of the Company’s current total share
capital (2,852,788,750 shares).
The Company held the 27th meeting of the ninth board of directors and the second extraordinary
general meeting of 2021 on December 15, 2021, and December 31, 2021, respectively. At the meetings,
the Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2022 and its Summary, the
Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2022,
and the Proposal on Requesting Full Authorization from the Annual General Meeting for the Board of
Directors to Handle Matters Related to the Company’s Employee Stock Ownership Plan were
deliberated and approved. For details, refer to the relevant announcements published by the Company on
the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on December 16, 2021, and
January 1, 2022, respectively.
As of the date of this report, the term of the Company’s 2022 employee stock ownership plan has
expired. All Company shares held under the plan have been fully sold and the plan has been liquidated.
The Company held the 35th meeting of the ninth board of directors and the first extraordinary
general meeting of 2023 on December 21, 2022, and January 6, 2023, respectively. At the meetings, the
Proposal on the Company’s Employee Stock Ownership Plan (Draft) for 2023 and its Summary, the
Proposal on the Management Measures for the Company’s Employee Stock Ownership Plan for 2023,
and the Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors
to Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and
approved. For details, refer to the relevant announcements published by the Company on the website of
the Shanghai Stock Exchange (http://www.sse.com.cn) on December 22, 2022, and January 9, 2023.
As of January 28, 2023, the Company’s designated account for the 2023 employee stock ownership
plan had purchased a total of 28,260,800 shares of Meihua Bio through centralized bidding on the
secondary market, with a total transaction amount of 295,296,438 yuan and an average transaction price
of approximately 10.45 yuan per share. The number of shares purchased accounted for 0.93% of the
Company’s then total share capital of 3,042,465,447 shares. In accordance with the plan approved at the
first extraordinary general meeting of 2023, the purchase under the 2023 employee stock ownership plan
has been completed. The purchased shares are subject to lock-up and will be unlocked in two phases
after 12 and 24 months from the date of the announcement, with the maximum lock-up period being 24
months. The proportions of shares to be unlocked in each phase are 50% and 50%, respectively.
As of the end of the reporting period, all shares under the 2023 employee stock ownership plan had
been released from lock-up. The Company’s designated account for the 2023 employee stock ownership
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
plan held 12,800,100 shares, accounting for 0.45% of the Company’s current total share capital of
The Company held the 8th meeting of the tenth board of directors and the first extraordinary
general meeting of 2024 on January 16 and February 1, 2024, respectively. At the meetings, the Proposal
on the Company’s Employee Stock Ownership Plan (Draft) for 2024 and its Summary, the Proposal on
the Management Measures for the Company’s Employee Stock Ownership Plan for 2024, and the
Proposal on Requesting Full Authorization from the General Meeting for the Board of Directors to
Handle Matters Related to the Company’s Employee Stock Ownership Plan were deliberated and
approved. For details, refer to the relevant announcements published by the Company on the website of
the Shanghai Stock Exchange (http://www.sse.com.cn) on January 17 and February 2, 2024.
As of June 27, 2024, the Company’s designated account for the 2024 employee stock ownership
plan had purchased a total of 18,527,100 shares of the Company through centralized bidding on the
secondary market, with a total transaction amount of 192,049,194 yuan (excluding transaction fees) and
an average transaction price of approximately 10.37 yuan per share. The number of shares purchased
accounted for 0.65% of the Company’s current total share capital of 2,852,788,750 shares. In accordance
with the plan approved at the first extraordinary general meeting of 2024, the purchase under the 2024
employee stock ownership plan has been completed. The purchased shares are subject to lock-up and
will be unlocked in two phases after 12 and 24 months from the date of the announcement, with the
maximum lock-up period being 24 months. The proportions of shares to be unlocked in each phase are
As of the end of the reporting period, the unlocking conditions for the first phase of the 2024
Employee Stock Ownership Plan had been met, and 50% of the shares had been released from restriction.
The dedicated account of the 2024 Employee Stock Ownership Plan held 18,527,100 shares of the
Company, representing 0.65% of the Company’s total current share capital of 2,852,788,750 shares.
On February 11, 2025, the Company convened the 17th meeting of the 10th Board of Directors, and
on February 27, 2025, the first extraordinary general meeting of shareholders in 2025. At these meetings,
the following proposals were reviewed and approved: Proposal on the 2025 Employee Stock Ownership
Plan (Draft) and its Summary, Proposal on the Administrative Measures of the 2025 Employee Stock
Ownership Plan, and Proposal on Requesting the General Meeting of Shareholders to Authorize the
Board of Directors to Fully Handle Matters Related to the Company’s Employee Stock Ownership Plan.
For details, please refer to the announcements disclosed by the Company on the Shanghai Stock
Exchange website (http://www.sse.com.cn) on February 12, 2025 and February 28, 2025.
As of the market close on August 1, 2025, the special account of the 2025 Employee Stock
Ownership Plan had purchased a total of 21,042,422 shares of the Company through centralized bidding
transactions on the secondary market, representing 0.74% of the Company’s total current share capital of
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
total transaction amount of RMB 225,143,665.20 (excluding transaction fees). According to the plan
approved by the first extraordinary general meeting of shareholders in 2025, the purchase of Company
shares under the 2025 Employee Stock Ownership Plan has been completed. The purchased shares will
be subject to lock-up in accordance with regulations. The lock-up period will expire in two phases: after
lock-up period of 24 months. The shares will be unlocked in two batches, with 50% released each time.
Other incentives
? Applicable √ Not applicable
IV. Environmental Information Disclosure of Listed Companies and Their Major Subsidiaries
Included in the Mandatory Environmental Information Disclosure List
√ Applicable ?Not applicable
Number of enterprises
included in the list of
entities required by law 5
to disclose environmental
information (units)
No. Enterprise Name Index for Inquiry of Legally Mandated Environmental Information Disclosure Report
System on Corporate Environmental Information Disclosed in accordance with the Law
(Inner Mongolia)
http://111.56.142.62:40010/support-yfpl-web/web/viewRunner.html?viewId=http://111.56.1
Tongliao Meihua
Biotech Co., Ltd.
de=150000
National Pollutant Discharge Permit Management Information Platform
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
System on Corporate Environmental Information Disclosed in accordance with the Law
(Inner Mongolia)
Tongliao Jianlong http://111.56.142.62:40010/support-yfpl-web/web/viewRunner.html?viewId=http://111.56.1
Ltd. de=150000
National Pollutant Discharge Permit Management Information Platform
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
Xinjiang Meihua
National Pollutant Discharge Permit Management Information Platform
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
Ltd.
Wujiaqu Jianlong
National Pollutant Discharge Permit Management Information Platform
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
Ltd.
System on Corporate Environmental Information Disclosed in accordance with the Law
Jilin Meihua (Jilin)
Ltd. National Pollutant Discharge Permit Management Information Platform
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Note: As the company’s overseas M&A transaction completed asset delivery on July 1, 2025, the above table does
not include environmental information for the newly acquired factories. The environmental information of the newly
acquired controlling companies will be disclosed in the annual report.
Other information
√ Applicable ?Not applicable
Except for Tongliao Meihua, Tongliao Jianlong, Xinjiang Meihua, Wujiaqu Jianlong and Jilin
Meihua, other wholly-owned subsidiaries of the Company are not key pollutant discharge entities as
classified by the environmental authorities. These subsidiaries include Langfang Meihua Condiments
Co., Ltd. and Tongliao Meihua Condiments Co., Ltd., which are engaged in the packaging and sales of
condiments; Lhasa Meihua, which is engaged in external investment; Hong Kong Meihua, a trading
company responsible for exporting the Company’s products; and Meihua (Shanghai) Biotech Co., Ltd.,
which focuses on technology development. These subsidiaries are not involved in the discharge or
monitoring of major pollutants.
V. Consolidation and Expansion of Achievements in Poverty Alleviation and Work Related to
Rural Revitalization
√ Applicable ?Not applicable
While achieving rapid growth and improving economic performance, the company has consistently
upheld its mission of “giving back to society and helping those in need,” actively participating in public
welfare initiatives such as rural revitalization and charitable donations, and demonstrating the corporate
philosophy of “benefiting all under heaven” through concrete actions.
During the reporting period, the company, through its Tibet Meihua Public Welfare Foundation,
participated in and supported various donation and charity activities:
learning public welfare program. The funds will support the 2025 ETS Conference for middle school
students, promote institutional development, and carry out related public welfare activities, helping rural
children stimulate innovative thinking and discover a more independent, open, and confident self.
earthquake-affected areas, specifically for earthquake relief and post-disaster reconstruction in Dingri
County.
specifically for the “Rural Revitalization Improvement Project,” helping to renovate and beautify the
village environment.
to support the Microecology Medicine Research Team at the Second Affiliated Hospital of Nanjing
Medical University, facilitating scientific research and talent cultivation in microecology medicine.
infrastructure projects in Cuoma Village and Bengjie Village, Seqing Township, including the
construction of street lamps, wells, and wolf-proof fences for local residents.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
“Policy and Theory at the Grassroots + Medical and Drug Assistance to Warm Hearts” project. By
organizing free clinics and distributing medicines, the initiative addresses the challenges rural residents
face in accessing medical care and medications, implementing a “policy + service” dual approach to
bridge the “last mile” in grassroots healthcare.
Township in Akto County, Xinjiang, and the Disabled Persons’ Federation of the Sixth Division of the
Xinjiang Production and Construction Corps. These donations focus on local livelihood support and
public service capacity building, while also assisting vulnerable groups.
improve the school’s broadcasting system and enhance emergency response capabilities.
participate in the “Run for Love” charity event and donated RMB 55,750 to the China Social Welfare
Foundation. The funds were used to provide sports kits to students in Hebei, Xinjiang, Inner Mongolia,
and Jilin, promoting student physical health.
District, Baicheng, to enhance digital teaching capabilities and provide higher-quality digital educational
resources for teachers and students.
campaign and donated RMB 16,800 to the Shaanxi Charity Federation, supporting the Shaanxi Tibet
Assistance Team in planting 210 saplings on the Tibetan Plateau.
The company continues to diversify its public welfare initiatives, making charity a regular practice
and embedding social responsibility into daily operations, thus continuously writing a new chapter in
corporate philanthropy.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Section 5. Significant Matters
I. Fulfillment of Commitments
(I) Commitments of relevant parties, including the Company’s actual controller, shareholders, related parties, acquirers, and the Company
√ Applicable ?Not applicable
Whether If it is not
it is If it is not fulfilled in
Whether
Commitment Type of Commitment Date of strictly fulfilled in due due course,
Content of commitment there is a Deadline
background commitment made by commitment fulfilled course, state the state the plan
deadline
in due specific reasons for the next
course step
During the period when Mr. Meng Qingshan and the
persons acting in concert serve as the Company’s
Meng controlling shareholder and actual controller,
Solving Qingshan effective measures will be taken, and Mr. Meng
July 19, Not
horizontal and persons Qingshan or the holding subsidiaries under Mr. Meng No Yes Not Applicable
competition acting in Qingshan and the persons acting in concert will take
Commitments concert effective measures not to engage in any business that
related to the may compete with that of the listed company or its
restructuring subsidiaries.
of major Upon completion of the restructuring, Mr. Meng
assets Qingshan and the persons acting in concert will avoid
Meng
related-party transactions with the listed company
Solving Qingshan
wherever possible. If there is any unavoidable July 19, Not
related-party and persons No Yes Not Applicable
related-party transaction, Mr. Meng Qingshan and the 2010 Applicable
transactions acting in
persons acting in concert will enter into agreements
concert
with the listed company in accordance with laws,
perform lawful procedures, fulfill the duty of
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
information disclosure, and go through formalities to
obtain approval in accordance with relevant laws,
regulations, and the Articles of Association. They
undertake not to harm the legitimate rights and
interests of the listed company and other shareholders
through related-party transactions.
Meng Upon completion of the transaction, they will
Qingshan maintain the independence of the listed company,
July 19, Not
Others and persons observe the principle of separation in personnel, No Yes Not Applicable
acting in finance, institution, and business, and run the listed
concert company in accordance with the relevant CRSC rules.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
II. Use of Funds by Controlling Shareholder and Related Parties for Non-operational Purposes
During the Reporting Period
? Applicable √ Not applicable
III. Guarantees in Violation of Regulations
? Applicable √ Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
IV. Audit Status of the Semi-Annual Report
? Applicable √ Not applicable
V. Changes and Handling of Matters Related to Non-Standard Audit Opinions in Last Year’s
Annual Report
? Applicable √ Not applicable
VI. Bankruptcy and Restructuring-Related Matters
? Applicable √ Not applicable
VII. Significant Litigation and Arbitration
√ The company had significant litigation and arbitration matters during the reporting period ?
□The company had no significant litigation or arbitration matters during the reporting period
(I) Circumstances in which litigation or arbitration was disclosed in provisional announcements
but did not subsequently progress
? Applicable √ Not applicable
(II) Circumstance where any litigation or arbitration was not disclosed in provisional
announcements or progressed subsequently
? Applicable √ Not applicable
(III) Other information
√ Applicable ?Not applicable
According to the Share Transfer Agreement for the transfer of 100% of the shares of Dalian Hanxin
Bio-Pharmaceuticals Co., Ltd. (former name and now known as AIM Honesty Bio-Pharmaceuticals Co.,
Ltd., hereinafter referred to as “AIM Honesty”) by the Company’s wholly-owned subsidiary Lhasa
Meihua Bio-investment Holdings Co., Ltd. to Liaoning AIM Bio-vaccine Technology Group Co., Ltd.
(former name and now known as AIM Vaccine Co., Ltd.), Lhasa Meihua Bio-investment Holdings Co.,
Ltd. undertakes that, except for the liabilities specifically stated in the audit report and the financial
statements provided to the acquirer and the liabilities that occurred abnormally in the normal course of
business of AIM Honesty and its subsidiaries after the audit benchmark date and has been disclosed to
the acquirer, AIM Honesty and its subsidiaries did not have any other debts or contingent debts. In the
event that it violates the undertaking, it shall bear compensation liability for all the direct or indirect
economic losses suffered by other parties due to the violation. In accordance with the aforementioned
provision, the Company has performed the obligation for partial compensation. For more details, refer to
the Company’s previous annual reports.
The Company’s subsidiary Lhasa Meihua Bio-investment Holdings Co., Ltd. (hereinafter referred
to as “Lhasa Meihua”) received the Notice on Repaying Debts from AIM Honesty on October 13, 2020.
According to (2015) DMSCZ No. 438 Civil Judgement issued by the Dalian Intermediate People’s
Court of Liaoning, Kunming Sunwise Measure and Control Technology Co., Ltd. (hereinafter referred to
as “Sunwise Measure and Control”) used the right of use of Parcels 17-1-3, 17-2, and five above-ground
properties located in the industrial base at Kunming Economic and Technological Development Zone
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
under its name to provide the guarantee for AIM Honesty to borrow loans from Bank of Jilin Co., Ltd.
Dalian Branch under the Renminbi Borrowings Contract (2014 LJZ DL1114010272). The judicial sale
of the above land parcels and properties pledged was done on April 19, 2018. The payment from the sale
will be used to repay the bank loans, and Sunwise Measure and Control is entitled to seek compensation
from AIM Honesty.
According to relevant agreements, including the Agreement on the Transfer of the Shares of Dalian
Hanxin Bio-Pharmaceuticals Co., Ltd. between the Company’s subsidiary, Lhasa Meihua, and AIM
Vaccine Co., Ltd., Lhasa Meihua shall be responsible for solving the realization of the non-operating
creditor’s right and the settling of debts for AIM Honesty in respect of its former shareholder, Tibet
Yiyuan Industry Co., Ltd. (hereinafter referred to as “Tibet Yiyuan”). Based on that, AIM Honesty gave
the aforementioned Notice on Repaying Debts to Lhasa Meihua. According to relevant documents,
including the share transfer agreement between Lhasa Meihua and AIM Honesty’s former shareholder,
Tibet Yiyuan, Tibet Yiyuan shall be responsible for realizing the non-operating creditor’s rights and
settling debts for AIM Honesty. Based on the aforementioned relevant agreements, the related parties
have agreed that Tibet Yiyuan and its related parties shall inherit the aforementioned debts arising from
the right of recourse and the interest.
In December 2021, according to the copy of the complaint, the notice of appearance, and other
relevant documents forwarded by AIM Honesty from the service of the Kunming Intermediate People’s
Court regarding the case of contractual dispute in which Kunming Sunwise Industry Co., Ltd. (holding
filed a lawsuit against AIM Honesty and the third party, Sunwise Measure and Control, which was its
shareholder, Sunwise Industry entered the bankruptcy and liquidation proceedings as ruled by the
Kunming Intermediate People’s Court on March 15, 2019, and the court designated Yunnan Zhenxu
Law Firm as the administrator. The administrator for Sunwise Industry filed a lawsuit, citing the fact that
Sunwise Measure and Control failed to claim compensation from AIM Honesty after performing the
guarantee obligation and demanded payment from AIM Honesty to Sunwise Measure and Control for
the receivables as well as the interest and the fund occupation fee. As previously stated, in accordance
with the provisions of relevant agreements, the Company has reached an agreement with all related
parties that Tibet Yiyuan and its related parties inherit all debts arising from the right of recourse and the
interest.
On October 18, 2022, the Kunming Intermediate People’s Court entered the following judgement: 1)
the Defendant AIM Honesty Bio-Pharmaceuticals Co., Ltd. repay 28,967,179.55 yuan to the third person
Kunming Sunwise Measure and Control Technology Co., Ltd. within 10 days of the entry into force of
the judgement; 2) the Defendant AIM Honesty Bio-Pharmaceuticals Co., Ltd. pay the fund occupation
fee to the third person Kunming Sunwise Measure and Control Technology Co., Ltd. within 10 days of
the entry into force of the judgement, using 28,967,179.55 as the basis for the period from August 17,
Kunming Sunwise Industry Co., Ltd. be rejected.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
On June 30, 2023, the Yunnan High People’s Court issued a judgment with Document No. (2023)
YMZ No. 324, ruling to reject the appeal and uphold the original judgment. AIM Honesty has applied
for a retrial with the Supreme People’s Court in respect of the above dispute. On March 26, 2024, the
Supreme People’s Court issued Civil Ruling No. (2023) ZGFMZ No. 1737, deciding that: (1) the case
would be retried by the Supreme People’s Court; and (2) the enforcement of the original judgment
would be suspended during the retrial. On October 10, 2024, the case was heard by the Supreme
People’s Court. As of the date of this report, the judgment has not yet been issued.
As of June 30, 2025, the Company accrued a total of RMB 32,948,103.32 in estimated
compensation for liabilities and related interest based on the judgment of the Yunnan High People’s
Court.
Shandong Fufeng Fermentation Co., Ltd. (“Shandong Fufeng”) filed a lawsuit against the Company
and its subsidiary Xinjiang Meihua over a dispute concerning trade secrets related to xanthan gum
production. Through multiple trials of the court, under the mediation of enforcement judges from the
Jinan Court, the Company and its wholly-owned subsidiary Xinjiang Meihua reached an enforcement
settlement agreement with Shandong Fufeng in early March 2025 regarding the xanthan gum production
trade secrets dispute. According to the agreement, the Company and Xinjiang Meihua made a one-time
settlement payment of RMB 233 million to Shandong Fufeng by March 14, 2025. In return, Shandong
Fufeng agreed to file a withdrawal application with the Shandong High People’s Court for Case No.
(2025) Lu Min Chu No. 4 by March 7, 2025, and to request the Jinan Court to lift the enforcement
measures against the Company, Xinjiang Meihua, and relevant individuals, including but not limited to
the removal from the list of dishonest debtors, and to cooperate in concluding the enforcement process.
On March 12, 2025, the Jinan Intermediate People’s Court issued a Case Closure Notice,
confirming that all parties had fulfilled their respective obligations under the settlement agreement as of
that date. The listing of the Company and Xinjiang Meihua as dishonest judgment debtors has been
expunged from the public database, and Judgment No. (2022) ZGFMZ 64 has been fully enforced. For
detailed information, please refer to the relevant announcements issued by the Company.
VIII. Alleged Violations of and Punishments on the Listed Company as well as its Directors,
Supervisors, Officers, Controlling Shareholder, and Actual Controller, and the Rectifications
√ Applicable ?Not applicable
On March 17, 2025, the Company was notified in writing by its controlling shareholder, Mr. Meng
Qingshan, that due to the grounds set forth in the China Securities Regulatory Commission’s
Administrative Penalty Decision (2020) No. 93, the Langfang People’s Procuratorate has determined
that Mr. Meng violated national laws and regulations and, in violation of Article 182, Paragraph 1, Item
alleged market manipulation and placed under bail pending trial.
Mr. Meng retired from all positions in the Company in January 2017 and no longer holds any
executive role. As a shareholder, he only exercises his rights at the shareholders’ meeting level. The
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
aforementioned matter concerns Mr. Meng personally and is unrelated to the Company. The Company’s
production and operations continue normally. The Company believes that this matter will not affect its
shareholding structure, corporate governance, or business operations. The Company will continue to
monitor the situation and fulfill its information disclosure obligations in a timely manner.
IX. Credit Statuses of the Company as well as its Controlling Shareholder and Actual Controller
during the Reporting Period
? Applicable √ Not applicable
X. Significant Related-Party Transactions
(I) Related-party transactions related to day-to-day operations
subsequently
? Applicable √ Not applicable
subsequently
√ Applicable ?Not applicable
Amount
Content of Amount incurred in
incurred in the
Related party related-party the current period
previous period
transaction (yuan)
(yuan)
Tongliao Desheng Bio-tech Co., Ltd. Goods 40,939,356.32 40,961,716.94
Tongliao Desheng Bio-tech Co., Ltd. Services 468,821.28 12,653.30
Total 41,408,177.60 40,974,370.24
Where the Company is the lessor
Rental income Rental income
Type of leased recognized in the recognized in
Name of lessee
asset current period the previous
(yuan) period (yuan)
Tongliao Desheng Bio-tech Co., Ltd. Housing 754,159.91 1,252,062.94
Total 754,159.91 1,252,062.94
? Applicable √ Not applicable
(II) Related-party transactions concerning the purchase or sales of assets or shares
subsequently
? Applicable √ Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
subsequently
? Applicable √ Not applicable
? Applicable √ Not applicable
accomplishment of performance targets during the Reporting Period
? Applicable √ Not applicable
(III) Significant related-party transactions concerning joint outbound investment
subsequently
? Applicable √ Not applicable
subsequently
? Applicable √ Not applicable
? Applicable √ Not applicable
(IV) Related-party dealings of creditor’s right and debts
subsequently
? Applicable √ Not applicable
subsequently
? Applicable √ Not applicable
? Applicable √ Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(V) Finance business between the Company and related finance companies, the Company’s
holding finance companies, and related parties
? Applicable √ Not applicable
(VI) Other material related-party transactions
? Applicable √ Not applicable
(VII) Miscellaneous
? Applicable √ Not applicable
XI. Major Contracts and Performance
(I) Trusteeship, contracting, and lease matters
? Applicable √ Not applicable
? Applicable √ Not applicable
? Applicable √ Not applicable
? Applicable √ Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(II) Major guarantees executed during the reporting period and those not yet fulfilled
√Applicable □Not applicable
Unit: yuan Currency: RMB
The Company’s external guarantees (excluding guarantees for subsidiaries)
Total balance of guarantees at the end of the Reporting Period (A) (excluding
guarantees for subsidiaries)
The Company’s guarantee for subsidiaries
Total amount of guarantees incurred during the Reporting Period 2,615,554,084.82
Total balance of guarantees for subsidiaries at the end of the Reporting Period
(B)
The Company’s total guarantees (including guarantees for subsidiaries)
Total guarantees (A+B) 904,155,654.13
Proportion of total guarantees in the Company’s net assets (%) 6.04
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(III) Other major contracts
? Applicable √ Not applicable
XII. Progress of the use of raised funds
? Applicable √ Not applicable
XIII. Other Important Matters
√ Applicable ?Not applicable
The Company held the 13th meeting of the tenth session of the board of directors and the 2nd
extraordinary general meeting of 2024 on September 23, 2024, and October 11, 2024, respectively. The
Proposal on Repurchasing the Company’s Shares by Means of Centralized Bidding was deliberated and
approved at the meetings. On October 12, 2024, the Company disclosed the Repurchase Report of
Meihua Holdings Group Co., Ltd. on the Repurchase of Shares by Means of Centralized Bidding. On
October 23, 2024, the Company carried out the first repurchase. For details, refer to the relevant
announcement published by the Company on the website of the Shanghai Stock Exchange
(www.sse.com.cn).
As of the end of the reporting period, the Company has repurchased 35,708,400 shares through
centralized bidding transactions, accounting for 1.25% of the Company’s current total share capital
(2,852,788,750 shares). The lowest repurchase price was RMB 9.10 per share, and the highest
repurchase price was RMB 10.68 per share, with a total payment of RMB 352,024,400 (excluding
transaction fees). This repurchase complies with relevant laws, regulations, normative documents, and
the Company’s share repurchase plan.
Upon review and approval by the 16th meeting of the 10th Board of Directors, on November 22,
(hereinafter “Singapore Company”) entered into a Share and Asset Purchase Agreement with Kyowa
Hakko’s wholly-owned subsidiary under Kirin Holdings. Under the agreement, the Singapore Company
or a special purpose vehicle (“SPV”) newly established under the Singapore Company will acquire, in
cash, Kyowa Hakko’s food amino acids, pharmaceutical-grade amino acids, and human milk
oligosaccharides (HMO) business (collectively, the “Target Assets”). Details of the transaction are
disclosed in the Company’s relevant announcements.
Pursuant to the Share and Asset Purchase Agreement and its supplemental agreements, all
conditions precedent for closing have been satisfied, and the parties completed the business handover on
July 1, 2025. According to the agreement, the counterparty had settled its debts prior to closing. Based
on the previously agreed consideration, adjusted for the cash retained by overseas operating entities and
working capital at the closing date, the final consideration for the transaction amounted to approximately
JPY 16.8 billion (equivalent to approximately RMB 833 million at the exchange rate on June 30, 2025).
As the transaction involves changes in the equity of multiple domestic and overseas operating
entities, the related registration procedures are still in progress. Meanwhile, the Company has engaged
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
professional institutions to conduct audit and valuation of the Target Assets. The impact of this
transaction on the Company’s 2025 performance will be determined with reference to the audit and
valuation results. The Company will continue to monitor the progress and issue timely announcements
in accordance with relevant regulations.
Section 6. Share Changes and Shareholders
I. Changes in Share Capital
(I) Table of share changes
During the reporting period, the total number of the company’s shares and its share capital structure
remained unchanged.
? Applicable √ Not applicable
Date of Semi-Annual Report Disclosure on Financial Indicators such as Earnings per Share and
Net Assets per Share (if applicable)
? Applicable √ Not applicable
securities regulatory body
? Applicable √ Not applicable
(II) Changes in restricted sales
? Applicable √ Not applicable
II. Shareholder Information
(I) Total number of shareholders
Total number of ordinary shareholders as of the end of the Reporting Period 58,952
(II) Shares held by the top ten shareholders and the top ten holders of tradable shares (or holders
of non-restricted shares) as of the end of the Reporting Period
Unit: Share
Shares held by the top ten shareholders (excluding the shares lent through refinancing)
Increase/d Number Pledged, marked,
Number of
ecrease of or frozen shares
shares held at Proporti Nature of
Shareholder’s name (full name) during the restricte Qu
the end of the on (%) shareholder
Reporting d shares Share status ant
period
Period held ity
Domestic
Meng Qingshan 854,103,033 29.94 None
natural person
Hong Kong Securities Clearing Company Limited 80,586,233 2.82 None Other
Domestic
Wang Aijun 72,452,774 2.54 None
natural person
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Beijing Royal Fortune Co., Ltd. -- Royal Fortune
Huichen Strategic Investment Private Securities 70,571,369 2.47 None Other
Investment Fund
Domestic
Hu Jijun 64,562,220 2.26 None
natural person
China Merchants Bank Co., Ltd. -- Xingquan
Herun Mixed Securities Investment Fund
Domestic
Liang Yubo 54,474,218 1.91 None
natural person
National Social Security Fund Portfolio
China Merchants Bank Co., Ltd. -- Xingquan
Heyi Flexible Allocation Mixed Securities 32,044,240 1.12 None Other
Investment Fund (LOF)
Domestic
Yang Weiyong 30,646,962 1.07 None
natural person
Shares held by the top ten holders of non-restricted shares (excluding the shares lent through refinancing)
Quantity of non-restricted tradable Type and quantity of shares
Name of shareholder
shares held Type Quantity
RMB ordinary
Meng Qingshan 854,103,033 854,103,033
share
RMB ordinary
Hong Kong Securities Clearing Company Limited 80,586,233 80,586,233
share
RMB ordinary
Wang Aijun 72,452,774 72,452,774
share
Beijing Royal Fortune Co., Ltd. -- Royal Fortune Huichen RMB ordinary
Strategic Investment Private Securities Investment Fund share
RMB ordinary
Hu Jijun 64,562,220 64,562,220
share
China Merchants Bank Co., Ltd. -- Xingquan Herun Mixed RMB ordinary
Securities Investment Fund share
RMB ordinary
Liang Yubo 54,474,218 54,474,218
share
RMB ordinary
National Social Security Fund Portfolio 406 33,179,199 33,179,199
share
China Merchants Bank Co., Ltd. -- Xingquan Heyi Flexible RMB ordinary
Allocation Mixed Securities Investment Fund (LOF) share
RMB ordinary
Yang Weiyong 30,646,962 30,646,962
share
The Company’s repurchase account is not presented in the “Shares
held by the top ten holders of non-restricted shares” section. As of t
Information on the Repurchase Account Among the Top Ten
he end of the Reporting Period, there were 35,708,400 of the Comp
Shareholders
any’s shares held in the repurchase account, accounting for 1.25% o
f the Company’s total (2,852,788,750 shares) shares at present.
Among the above shareholders, Meng Qingshan, Hu Jijun, Wang Aijun, and
Information of voting trust, voting trusteeship, and abstention of Liang Yubo have no voting trust, voting trusteeship, and abstention of voting
voting rights for the above shareholders rights. The information of voting trust, voting trusteeship, and abstention of
voting rights for other shareholders is not known.
Information of relationships or acting in concert of the above Among the above shareholders, Meng Qingshan and Wang Aijun are persons
shareholders acting in concert.
Information of preferred shareholders with restored voting rights
None
and the number of shares held by them
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Participation of shareholders holding 5% or more, top ten shareholders, and top ten holders of
unrestricted outstanding shares in securities lending through the stock lending and borrowing (SLB)
program.
? Applicable √ Not applicable
Changes in the Top Ten Shareholders and Top Ten Holders of Unrestricted Outstanding Shares Due to
Stock Lending and Borrowing (SLB) Activities
? Applicable √ Not applicable
Number of shares held by the top ten holders of restricted shares and the restrictions
? Applicable √ Not applicable
(III) Strategic investors or general legal persons becoming top ten holders due to the allotment of
new shares
? Applicable √ Not applicable
III. Information of Directors, Supervisors, and Officers
(I) Changes in Shareholdings of Current and Resigned Directors, Supervisors, and Senior
Management During the Reporting Period
? Applicable √ Not applicable
Other Explanatory Information
? Applicable √ Not applicable
(II) Equity Incentives Granted to Directors, Supervisors, and Senior Management During the
Reporting Period
? Applicable √ Not applicable
(III) Other information
? Applicable √ Not applicable
IV. Changes in Controlling Shareholder or Actual Controller
? Applicable √ Not applicable
V. Information on Preferred Shares
? Applicable √ Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Section 7. Information on Securities
I. Corporate Bonds (including Enterprise Bonds) and Non-Financial Corporate Debt Financing
Instruments
? Applicable √ Not applicable
II. Information of Convertible Debentures
? Applicable √ Not applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Section 8. Financial Report
I. Audit Report
? Applicable √ Not Applicable
II. Financial Statements
Consolidated Balance Sheet
June 30, 2025
Prepared by: Meihua Holdings Group Co., Ltd.
Unit: Yuan Currency: RMB
Items Notes June 30, 2025 December 31, 2024
Current Assets:
Monetary assets Note 1 2,913,757,715.41 4,561,056,193.96
Deposit reservation for balance
Placements with banks and other financial
institutions
Financial assets held for trading Note 2 1,397,826,972.26 312,033,611.07
Derivative financial assets Note 3 468,200.00
Notes receivable Note 4 92,822,653.44 73,697,475.30
Accounts receivable Note 5 607,407,229.81 587,909,538.21
Receivables Financing Note 7 18,045,534.34 26,723,054.99
Prepaid accounts Note 8 107,821,158.00 220,000,861.75
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables Note 9 28,668,079.85 49,292,999.56
Including: Interest receivable 2,362,500.00 1,575,000.00
Dividend receivable 1,395,866.49 1,395,866.49
Financial assets purchased under agreements to
resell
Inventories Note 10 2,512,884,223.71 2,722,279,908.07
Among them: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year Note 12 108,345,222.59 182,257,027.81
Other current assets Note 13 1,053,547,103.85 164,629,398.67
Total Current Assets 8,841,594,093.26 8,899,880,069.39
Non-current Assets:
Loans and advances
Debt investments Note 14 10,500,000.00 10,500,000.00
Other debt investments
Long-term receivables Note 16 619,712.60 601,043.91
Long-term equity investments Note 17 5,951,585.90 6,874,939.88
Investments in other equity instruments Note 18 327,534,650.00 441,294,280.00
Other non-current financial assets
Investment properties
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Fixed assets Note 21 11,305,605,148.16 11,338,208,623.56
Construction in progress Note 22 1,133,239,020.75 728,524,141.54
Productive biological assets
Oil and gas assets
Right-of-use assets Note 25 5,686,811.92 8,145,892.35
Intangible assets Note 26 1,335,157,587.43 1,356,812,266.82
Among them: Data resources
Development expenditure
Among them: Data resources
Goodwill Note 27 11,788,911.79 11,788,911.79
Long-term prepaid expenses Note 28 132,143,362.76 122,538,549.51
Deferred income tax assets Note 29 129,145,474.37 101,814,807.93
Other non-current assets Note 30 762,531,174.19 782,574,484.98
Total Non-current Assets 15,159,903,439.87 14,909,677,942.27
Total Assets 24,001,497,533.13 23,809,558,011.66
Current Liabilities:
Short-term borrowings Note 32 1,586,838,913.18 1,734,832,631.06
Borrowings from central bank
Borrowings from banks and other financial
institutions
Financial liabilities held for trading
Derivative financial liabilities Note 34 297,500.00
Notes payable Note 35 1,423,949,868.69 1,416,217,579.96
Accounts payable Note 36 1,576,860,025.02 1,441,533,026.72
Advances from customers
Contract liabilities Note 38 656,660,453.80 916,515,321.35
Financial assets sold for repurchase
Deposits from customers and interbank
Customer brokerage deposits
Securities underwriting brokerage deposits
Employee benefits payable Note 39 337,442,819.61 310,133,688.99
Taxes payable Note 40 250,775,388.20 280,212,685.60
Other payables Note 41 242,540,793.08 448,115,137.98
Including: Interest payable
Dividends payable 405,000.00 409,445.58
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year Note 43 710,617,924.83 802,346,793.78
Other current liabilities Note 44 61,495,237.41 88,785,123.74
Total Current Liabilities 6,847,181,423.82 7,438,989,489.18
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings Note 45 1,732,115,654.12 1,348,094,044.83
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities Note 47 1,557,058.76 1,985,140.84
Long-term payables Note 48 10,500,000.00 10,500,000.00
Long-term employee benefits payable
Estimated liabilities Note 50 32,948,103.32 32,438,161.92
Deferred income Note 51 375,510,410.61 381,020,645.51
Deferred income tax liabilities Note 29 21,550,168.28 21,585,228.45
Other non-current liabilities
Total Non-current Liabilities 2,174,181,395.09 1,795,623,221.55
Total Liabilities 9,021,362,818.91 9,234,612,710.73
Owners' Equity (Shareholders' Equity):
Paid-in capital (or stock) Note 53 2,852,788,750.00 2,852,788,750.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves Note 55 263,154,867.05 263,154,867.05
Less: Treasury stock Note 56 352,066,338.78 287,771,455.80
Other comprehensive income Note 57 -153,671,324.15 -55,004,961.46
Special reserves Note 58 4,931,483.03 4,743,615.67
Surplus reserves Note 59 1,426,394,375.00 1,426,394,375.00
General risk reserves
Undistributed profits Note 60 10,938,602,902.07 10,370,640,110.47
Total Owners' Equity (or Shareholders' Equity)
Attributable to the Parent Company
Minority stockholder's interest
Total Owners' Equity (or Shareholders' Equity) 14,980,134,714.22 14,574,945,300.93
Total Liabilities and Owners' Equity (or
Shareholders' Equity)
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang
Ailing
Parent Company’s Balance Sheet
June 30, 2025
Prepared by: Meihua Holdings Group Co., Ltd.
Unit: Yuan Currency: RMB
Items Notes June 30, 2025 December 31, 2024
Current Assets:
Monetary assets 1,158,544,268.60 1,543,851,627.94
Financial assets held for trading 51,148,767.12 50,491,712.32
Derivative financial assets
Notes receivable 92,822,653.44 73,047,475.30
Accounts receivable Note 1 250,240,564.12 162,553,781.77
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Receivables Financing 17,343,388.88 26,575,904.82
Prepaid accounts 510,383,100.61 475,357.88
Other receivables Note 2 559,896,267.01 1,665,966,380.53
Including: Interest receivable
Dividend receivable 200,000,000.00 1,000,000,000.00
Inventories 73,592,617.60 65,050,433.21
Among them: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year 32,234,833.67 107,257,777.78
Other current assets 103,597,484.06 64,765,249.83
Total Current Assets 2,849,803,945.11 3,760,035,701.38
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables 1,083,992,738.49 849,764,271.75
Long-term equity investments Note 3 7,637,915,728.14 7,637,915,728.14
Investments in other equity instruments 157,000,000.00 157,000,000.00
Other non-current financial assets
Investment properties
Fixed assets 209,737,534.29 220,263,004.92
Construction in progress 18,483,612.32 1,158,006.34
Productive biological assets
Oil and gas assets
Right-of-use assets 3,680,218.68 5,683,180.01
Intangible assets 26,741,397.97 29,657,849.39
Among them: Data resources
Development expenditure
Among them: Data resources
Goodwill
Long-term prepaid expenses 6,667,837.64 7,442,964.64
Deferred income tax assets 25,512,067.54 24,003,415.50
Other non-current assets 501,632,707.38 477,168,855.60
Total Non-current Assets 9,671,363,842.45 9,410,057,276.29
Total Assets 12,521,167,787.56 13,170,092,977.67
Current Liabilities:
Short-term borrowings 1,040,102,083.34 946,819,589.89
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 1,933,218,979.40 1,801,200,152.53
Accounts payable 1,896,962,853.63 1,546,027,555.51
Advances from customers
Contract liabilities 423,563,711.40 686,582,514.27
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Employee benefits payable 176,541,948.05 122,576,747.39
Taxes payable 25,062,895.79 17,341,488.83
Other payables 107,197,234.29 94,683,082.66
Including: Interest payable
Dividends payable 405,000.00 409,445.58
Liabilities held for sale
Non-current liabilities due within one year 537,141,041.87 468,965,560.37
Other current liabilities 106,204,277.63 147,284,751.55
Total Current Liabilities 6,245,995,025.40 5,831,481,443.00
Non-current Liabilities:
Long-term borrowings 547,000,000.00 504,900,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 397,004.77 459,482.24
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income
Deferred income tax liabilities 745,555.34 833,818.64
Other non-current liabilities
Total Non-current Liabilities 548,142,560.11 506,193,300.88
Total Liabilities 6,794,137,585.51 6,337,674,743.88
Owners' Equity (Shareholders' Equity):
Paid-in capital (or stock) 2,852,788,750.00 2,852,788,750.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 229,404,999.46 229,404,999.46
Minus:Treasury stock 352,066,338.78 287,771,455.80
Other comprehensive income
Special reserves
Surplus reserves 1,426,394,375.00 1,426,394,375.00
Undistributed profits 1,570,508,416.37 2,611,601,565.13
Total Owners' Equity (or Shareholders' Equity) 5,727,030,202.05 6,832,418,233.79
Total Liabilities and Owners' Equity (or
Shareholders' Equity)
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang
Ailing
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Consolidated Income Statement
January to June 2025
Unit: Yuan Currency: RMB
Items Notes 2025 Semi-annual 2024 Semi-annual
I. Total Operating Revenue 12,280,450,603.53 12,642,718,053.37
Including: Operating revenue Note 61 12,280,450,603.53 12,642,718,053.37
Interest revenue
Earned premiums
Handling charges and commission revenue
II. Total Operating Costs 10,368,912,543.02 11,156,817,653.82
Including: Operating Costs Note 61 9,433,353,240.09 10,177,206,263.13
Interest Expenses
Handling charges and commission expenses
Surrender value
Net claim paid
Net provision of insurance reserve
Policy dividends paid
Reinsurance expenses
Taxes and surcharges Note 62 119,066,571.04 115,408,867.54
Sales expenses Note 63 167,760,792.02 204,453,466.84
Administrative expenses Note 64 469,433,561.57 554,506,366.51
Research and development expenses Note 65 199,958,697.93 180,479,234.74
Financing expenses Note 66 -20,660,319.63 -75,236,544.94
Including: Interest expenses 27,955,159.53 46,859,883.13
Interest revenue 26,389,977.12 59,735,278.47
Plus: Other revenues Note 67 148,546,316.33 174,432,864.62
Investment gains ("-" for loss) Note 68 29,250,766.79 14,671,408.04
Including: Investment gains from associates and
-923,353.98 -2,220,562.67
joint ventures
Gains from derecognition of financial assets
measured at amortized cost ("-" for loss)
Exchange gains ("-" for loss)
Net exposure hedging gains (Loss indicated by "-")
Gains from changes in fair value ("-" for loss) Note 70 16,016,844.67 1,959,926.94
Credit impairment losses ("-" for loss) Note 71 -154,305.79 6,162,617.22
Asset impairment losses ("-" for loss) Note 72 -9,236,606.64 -1,987,907.91
Asset disposal gains ("-" for loss) Note 73 438,552.05 1,598,224.17
III. Operating Profit ("-" for loss) 2,096,399,627.92 1,682,737,532.63
Plus: Non-operating revenue Note 74 3,157,136.41 66,373,971.73
Minus: Non-operating expenses Note 75 10,385,914.08 31,820,702.21
IV. Total Profit ("-" for total loss) 2,089,170,850.25 1,717,290,802.15
Minus: Income tax expenses Note 76 321,220,733.36 243,467,012.23
V. Net Profit ("-" for net loss) 1,767,950,116.89 1,473,823,789.92
(I) Classified by Operating Continuity
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
loss)
loss)
(II) Classified by Ownership
Company ("-" for net loss)
("-" for net loss)
VI. Net After-tax Amount of Other Comprehensive Income -98,666,362.69 -30,039,576.10
(I) Net After-tax Amount of Other Comprehensive
-98,666,362.69 -30,039,576.10
Income Attributable to Owners of the Parent Company
-96,695,685.50 -30,039,569.50
profit or loss
(1) Changes in the defined benefit plan after
remeasurement
(2) Other comprehensive income under Equity Method that
cannot be reclassified to profit or loss
(3) Changes in fair value of other equity instrument
-96,695,685.50 -30,039,569.50
investments
(4) Changes in fair value due to enterprise's own credit
risks
-1,970,677.19 -6.60
profit or loss
(1) Other comprehensive income under Equity Method that
can be reclassified to profit or loss
(2) Changes in fair value of other debt investments
(3) Amount of financial assets reclassified to other
comprehensive income
(4) Credit impairment reserves other debt investments
(5) Cash flow hedge reserve
(6) Converted difference in foreign currency statements -1,970,677.19 -6.60
(7) Others
(II) Net After-tax Amount of Other Comprehensive
Income Attributable to Minority Shareholders
VII. Total Comprehensive Income 1,669,283,754.20 1,443,784,213.82
(I) Total Comprehensive Income Attributable to Owners
of the Parent Company
(II) Total Comprehensive Income Attributable to
Minority Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share (Yuan/share) 0.62 0.5
(II) Diluted Earnings per Share (Yuan/share) 0.62 0.5
For the current period, in cases of merger of enterprises under the same control, the net profit realized by
the merged entity prior to the merger is: RMB 0 yuan, and the net profit realized by the merged entity in
the previous period is: RMB 0 yuan.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang
Ailing
Parent Company’s Income Statement
January to June 2025
Unit: Yuan Currency: RMB
Items Notes 2025 Semi-annual 2024 Semi-annual
I. Operating Revenue Note 4 8,400,691,318.67 8,056,017,970.19
Minus: Operating costs Note 4 7,997,162,336.78 7,769,738,470.55
Taxes and surcharges 12,708,875.50 11,516,047.80
Sales expenses 110,995,243.01 95,315,303.19
Administrative expenses 215,005,065.00 226,719,912.39
Research and development Expenses
Financing expenses -3,879,142.16 -18,247,623.82
Including: Interest expenses 2,082,969.25 4,706,434.36
Interest revenue 8,444,823.38 24,619,633.54
Plus: Other revenues 104,051,615.94 125,077,916.13
Investment gains ("-" for loss) Note 5 17,655,487.70 8,196,630.82
Including: Investment gains from associates and
joint ventures
Gains from derecognition of financial assets
measured at amortized cost ("-" for loss)
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 657,054.80 688,680.56
Credit impairment losses ("-" for loss) -4,656,505.57 2,990,596.29
Asset impairment losses ("-" for loss)
Asset disposal gains ("-" for loss) 5,092.90 381,667.58
II. Operating Profit ("-" for loss) 186,411,686.31 108,311,351.46
Plus: Non-operating revenue 657,896.77 278,195.77
Minus: Non-operating expenses 461,196.32 3,525,317.08
III. Total Profit ("-" for total loss) 186,608,386.76 105,064,230.15
Minus: Income tax expenses 27,714,210.23 16,088,744.30
IV. Net Profit ("-" for total loss) 158,894,176.53 88,975,485.85
(I) Net profit from continuing operations ("-" for net
loss)
(II) Net profit from discontinued operations ("-" for net
loss)
V. Net After-tax Amount of Other Comprehensive Income
(I) Other comprehensive income that cannot reclassified
to profit or loss
remeasurement
that cannot be reclassified to profit or loss
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
investments
risks
(II) Other comprehensive income to be reclassified to
profit or loss
that can be reclassified to profit or loss
comprehensive income
investments
statements
VI. Total Comprehensive Income 158,894,176.53 88,975,485.85
VII. Earnings per Share:
(I) Basic Earnings per Share (Yuan/share)
(II) Diluted Earnings per Share (Yuan/share)
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang
Ailing
Consolidated Cash Flow Statement
January to June 2025
Unit: Yuan Currency: RMB
Items Notes 2025 Semi-annual 2024 Semi-annual
I. Cash Flow from Operating Activities :
Cash received from sales of goods or rendering of services 13,004,397,294.89 13,389,911,638.60
Net increase in customer bank deposits and due to banks
and other financial institutions
Net increase in borrowings from the central bank
Net increase in funds borrowed from other financial
institutions
Cash received from premiums on original insurance
contracts
Net cash received from reinsurance business
Net increase in deposits and investments from insurers
Cash received from interest, handling charges and
commissions
Net increase in borrowed funds
Net increase in repurchase business funds
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Net cash received from securities trading brokerage
business
Refunds of taxes received 255,379,073.62 330,068,330.01
Other cash received related to operating activities Note 78 191,153,397.33 302,955,156.78
Subtotal cash inflows from operating activities 13,450,929,765.84 14,022,935,125.39
Cash paid for goods and services 9,083,489,211.25 9,916,642,628.20
Net increase in loans and advances to customers
Net increase in placements with central bank and due to
banks
Cash paid for claims for original insurance contracts
Net increase in funds lent
Cash paid for interest, handling charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 904,015,836.36 1,120,919,599.52
Various taxes paid 597,189,446.61 425,300,472.80
Other cash paid related to operating activities Note 78 553,444,050.99 324,254,301.75
Subtotal cash outflows from operating activities 11,138,138,545.21 11,787,117,002.27
Net cash flow from operating activities 2,312,791,220.63 2,235,818,123.12
II. Cash Flow from Investing Activities :
Cash received from recovery of investments 73,892,375.14 37,400,000.00
Cash received from investment income 16,498,979.00 10,871,635.28
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Other cash received related to investing activities Note 78
Subtotal cash inflows from investing activities 91,637,275.94 49,337,447.28
Cash paid for acquisition and construction of fixed assets,
intangible assets, and other long-term assets
Cash paid for investments 1,944,967,826.40 1,094,050,606.66
Net increase in pledge loans
Net cash paid for acquisition of subsidiaries and other
business units
Other cash paid related to investing activities Note 78 2,859,048.14 0.00
Subtotal cash outflows from investing activities 3,034,934,871.82 2,142,735,387.26
Net cash flow from investing activities -2,943,297,595.88 -2,093,397,939.98
III. Cash Flow from Financing Activities :
Cash received from capital injections
Including: cash received from minority shareholders'
investments of subsidiaries
Cash received from borrowings 2,874,965,205.64 3,556,386,998.94
Other cash received related to financing activities Note 78 428,515,211.85 235,856,949.53
Subtotal cash inflows from financing activities 3,303,480,417.49 3,792,243,948.47
Cash paid for debt repayment 2,629,070,000.00 3,573,136,295.58
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Cash paid for distribution of dividends, profits or interest
repayment
Including: Dividends or profits paid to minority
shareholders by subsidiaries
Other cash paid related to financing activities Note 78 255,748,337.46 503,808,378.73
Subtotal cash outflows from financing activities 4,113,628,860.22 5,248,768,205.51
Net cash flow from financing activities -810,148,442.73 -1,456,524,257.04
IV. Effect of Exchange Rate Changes on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash Equivalents -1,409,115,640.75 -1,246,025,337.34
Plus: Beginning balance of cash and cash equivalents 4,131,859,602.14 4,780,614,442.73
VI. Ending Balance of Cash and Cash Equivalents 2,722,743,961.39 3,534,589,105.39
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang
Ailing
Parent Company’s Cash Flow Statement
January to June 2025
Unit: Yuan Currency: RMB
Items Notes 2025 Semi-annual 2024 Semi-annual
I. Cash Flow from Operating Activities:
Cash received from sales of goods or rendering of
services
Refunds of taxes received 22,441,423.95 15,652,208.35
Other cash received related to operating activities 889,078,511.59 179,389,115.82
Subtotal cash inflows from operating activities 9,630,882,480.97 8,687,937,663.13
Cash paid for goods and services 7,841,211,006.39 8,062,195,349.34
Cash paid to and on behalf of employees 134,053,736.81 312,322,888.99
Various taxes paid 77,552,382.57 56,704,882.34
Other cash paid related to operating activities 852,281,310.95 157,266,597.91
Subtotal cash outflows from operating activities 8,905,098,436.72 8,588,489,718.58
Net cash flow from operating activities 725,784,044.25 99,447,944.55
II. Cash Flow from Investing Activities:
Cash received from recovery of investments 50,000,000.00
Cash received from investment income 818,290,843.26 1,233,461,214.15
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Other cash received related to investing activities
Subtotal cash inflows from investing activities 873,710,268.82 1,233,960,147.45
Cash paid for acquisition and construction of fixed assets,
intangible assets, and other long-term assets
Cash paid for investments 50,000,000.00 542,667,566.67
Net cash paid for acquisition of subsidiaries and other
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
business units
Other cash paid related to investing activities
Subtotal cash outflows from investing activities 78,884,182.60 584,023,003.76
Net cash flow from investing activities 794,826,086.22 649,937,143.69
III. Cash Flow from Financing Activities:
Cash received from capital injections
Cash received from borrowings 443,000,000.00 530,267,740.00
Other cash received related to financing activities 1,517,112,013.75 1,185,132,814.98
Subtotal cash inflows from financing activities 1,960,112,013.75 1,715,400,554.98
Cash paid for debt repayment 1,152,560,000.00 2,005,117,250.00
Cash paid for distribution of dividends, profits or interest
repayment
Other cash paid related to financing activities 1,263,584,662.20 1,303,626,181.23
Subtotal cash outflows from financing activities 3,629,052,090.32 4,455,424,576.56
Subtotal cash outflows from financing activities -1,668,940,076.57 -2,740,024,021.58
IV. Effect of Exchange Rate Changes on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash Equivalents -147,685,095.45 -1,989,411,003.62
Plus: Beginning balance of cash and cash equivalents 1,115,336,416.01 2,489,308,668.36
VI. Ending Balance of Cash and Cash Equivalents 967,651,320.56 499,897,664.74
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Consolidated Statement of Changes in Owner's Equity
January to June 2025
Unit: Yuan Currency: RMB
Equity Attributable to Owners of the Parent Company
Equity of
Items Total Owners’
Minority
Other Equity Instruments Other Genera; Equity
Paid-in Capital Minus: Special Undistributed Shareholders
Capital Reserve Comprehensive Surplus Reserve Risk Others Subtotal
(or stock) Preferred Perpetual Treasury Stock Reserve Profits
Others Income Reserve
Shares Bonds
I. Balance at End of Last
Year
Plus: Changes in
accounting policies
Correction of prior
period errors
Others
II. Balance at Beginning
of the Current Year
III. The Amount Changes
during the Current Period 64,294,882.98 -98,666,362.69 187,867.36 567,962,791.60 405,189,413.29 405,189,413.29
("-" for decrease)
(I) Total Comprehensive
-98,666,362.69 1,767,950,116.89 1,669,283,754.20 1,669,283,754.20
Income
(II) Owners'
Contributions and 64,294,882.98 -64,294,882.98 -64,294,882.98
Decrease of Capital
contributed by owners
holders of other
equipment instruments
payments recognized in
owners' equity
(III) Profit Distribution -1,199,987,325.29 -1,199,987,325.29 -1,199,987,325.29
reserve
Risk Reserve
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
-1,199,987,325.29 -1,199,987,325.29 -1,199,987,325.29
(or Shareholders)
(IV) Internal Transfer of
Owners' Equity
increased by capital
reserve transfer
increased by surplus
reserve transfer
reserve to offset losses
defined benefit plans to
retained earnings
comprehensive income to
retained earnings
(V) Special Reserves 187,867.36 187,867.36 187,867.36
Current Period
Current Period
(VI) Others
IV. Balance at End of the
Current Period
Equity Attributable to Owners of the Parent Company
Equity of
Items Total Owners’
Other Equity Instruments Other Genera; Minority
Paid-in Capital Minus: Special Undistributed Equity
Capital Reserve Comprehensive Surplus Reserve Risk Others Subtotal Shareholders
(or stock) Preferred Perpetual Treasury Stock Reserve Profits
Others Income Reserve
Shares Bonds
I. Balance at End of
Last Year
Plus: Changes in
accounting policies
Correction of prior
period errors
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Others
II. Balance at Beginning
of the Current Year
III. The Amount of
Changes during the
-90,637,352.00 -769,552,893.35 -576,775,719.27 -30,039,576.10 1,376,289.83 275,652,514.92 -36,425,297.43 -36,425,297.43
Current Period ("-" for
decrease)
(I) Total
-30,039,576.10 1,473,823,789.92 1,443,784,213.82 1,443,784,213.82
Comprehensive Income
(II) Owners'
Contributions and -90,637,352.00 -769,552,893.35 -576,775,719.27 -283,414,526.08 -283,414,526.08
Decrease of Capital
contributed by owners
by holders of other
equipment instruments
share-based payments
recognized in owners'
equity
(III) Profit Distribution -1,198,171,275.00 -1,198,171,275.00 -1,198,171,275.00
surplus reserve
General Risk Reserve
Owners (or -1,198,171,275.00 -1,198,171,275.00 -1,198,171,275.00
Shareholders)
(IV) Internal Transfer
of Owners' Equity
increased by capital
reserve transfer
increased by surplus
reserve transfer
reserve to offset losses
in defined benefit plans
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
to retained earnings
comprehensive income
to retained earnings
(V) Special Reserves 1,376,289.83 1,376,289.83 1,376,289.83
the Current Period
Current Period
(VI) Others
IV. Balance at End of
the Current Period
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing
Parent Company’s Statement of Changes in Owner’s Equity
January to June 2025
Unit: Yuan Currency: RMB
Other Equity
Instruments
Sp
Pe
eci
Pref rp Other
Items Paid-in Capital (or Minus: Treasury al Undistributed Total Owners’
erre etu Capital Reserve Comprehensiv Surplus Reserve
stock) Oth Stock e Income Re Profits Equity
d al
ers ser
Shar Bo
ve
es nd
s
I. Balance at End of Last Year 2,852,788,750.00 229,404,999.46 287,771,455.80 1,426,394,375.00 2,611,601,565.13 6,832,418,233.79
Plus: Changes in accounting policies
Correction of prior period errors
Others
II. Balance at Beginning of the Current Year 2,852,788,750.00 229,404,999.46 287,771,455.80 1,426,394,375.00 2,611,601,565.13 6,832,418,233.79
III. The Amount of Changes during the Current
Period ("-" for decrease)
(I) Total Comprehensive Income 158,894,176.53 158,894,176.53
(II) Owners' Contributions and Decrease of Capital 64,294,882.98 -64,294,882.98
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
instruments
owners' equity
(III) Profit Distribution -1,199,987,325.29 -1,199,987,325.29
(IV) Internal Transfer of Owners' Equity
transfer
transfer
retained earnings
retained earnings
(V) Special Reserves
(VI) Others
IV. Balance at End of the Current Period 2,852,788,750.00 229,404,999.46 352,066,338.78 1,426,394,375.00 1,570,508,416.37 5,727,030,202.05
Other Equity Instruments Other
Items Paid-in Capital Minus: Treasury Compre Special Undistributed Total Owners’
Preferred Perpetual
Capital Reserve Surplus Reserve
(or stock) Others Stock hensive Reserve Profits Equity
Shares Bonds Income
I. Balance at End of Last Year 2,943,426,102.00 998,957,892.81 576,775,719.27 1,326,294,444.30 2,821,575,330.73 7,513,478,050.57
Plus: Changes in accounting policies
Correction of prior period errors
Others
II. Balance at Beginning of the Current Year 2,943,426,102.00 998,957,892.81 576,775,719.27 1,326,294,444.30 2,821,575,330.73 7,513,478,050.57
III. Amount of Changes during the Current Period
-90,637,352.00 -769,552,893.35 -576,775,719.27 -1,109,195,789.15 -1,392,610,315.23
("-" for decrease)
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(I) Total Comprehensive Income 88,975,485.85 88,975,485.85
(II) Owners' Contributions and Decrease of
-90,637,352.00 -769,552,893.35 -576,775,719.27 -283,414,526.08
Capital
equipment instruments
owners' equity
(III) Profit Distribution -1,198,171,275.00 -1,198,171,275.00
(IV) Internal Transfer of Owners' Equity
transfer
transfer
retained earnings
retained earnings
(V) Special Reserves
(VI) Others
IV. Balance at End of the Current Period 2,852,788,750.00 229,404,999.46 1,326,294,444.30 1,712,379,541.58 6,120,867,735.34
Head of the Company: Wang Aijun Head of Accounting: Wang Lihong Head of the Accounting Institution: Wang Ailing
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
III. Basic Information of the Company
√ Applicable □ Not Applicable
(I) Registered Address, Organizational Form and Headquarter Address of the Company
Meihua Holdings Group Co., Ltd. (hereinafter referred to as "Company" or "The Company"),
formerly known as Wuzhou Minovo Co., Ltd. (hereinafter referred to as "Wuzhou Minovo"), was listed
on Shanghai Stock Exchange on February 17, 1995, underwent a name change from Wuzhou Minovo
Co., Ltd. to its current name following the absorption and merger with the original Meihua Holdings
Group Co., Ltd. (hereinafter referred to as "Original Meihua Group") and completed the business change
registration on March 3, 2011. The Company’s unified social credit code is 91540000219667563J.
The Original Meihua Group, formerly known as Hebei Meihua MSG Group Co., Ltd., was
established with investment from natural persons Meng Qingshan, Yang Weiyong, and Hu Jijun. It
obtained the Business License of Legal Entity No. 131081000002308 issued by the Hebei
Administration for Industry and Commerce on April 23, 2002.
Wuzhou Minovo was established as a stock corporation through fundraising, following the issuance
of 30 million shares to the public on January 6, 1995, with Chengdu Tibet Hotel, Tibet Autonomous
Region Trust Investment Company and Tibet Xingzang Industrial Development Company as sponsors. It
was officially registered in Lhasa, Tibet Autonomous Region on February 9, 1995, with a Business
License of Legal Entity number of 5400001000327 and a total share capital of 73 million shares. On
February 17 of the same year, with the approval of the China Securities Regulatory Commission, the
Company's public shares were listed for trading on the Shanghai Stock Exchange, under the stock code
On August 12, 1995, the Shareholders' Meeting of the Company approved the Dividend
Distribution Plan and implemented the 1994 Distribution Plan of granting 3 shares for every 10 shares
held to all shareholders on August 21, 1995. Based on a foundation of 73 million shares, a total of 21.9
million shares were distributed, elevating the Company's total share capital to 94.9 million shares.
On December 19, 1996, the Company deliberated and approved the Rights Issue Plan at the
Extraordinary Shareholders' Meeting for the Year 1996 and implemented the rights issue plan of granting
million shares, a total of 13,336,603 shares (including 1,436,603 transfer right shares) were distributed,
elevating the Company's total share capital to 108,236,603 shares.
On February 16, 2003, Shandong Wuzhou Investment Group Co., Ltd. and Weifang Bohai Industry
Co., Ltd. respectively entered into agreements with the Tibet Autonomous Region State-owned Assets
Management Company (whose shares were obtained through gratuitous transfer by the Tibet
Autonomous Region State-owned Assets Management Bureau), whereby Shandong Wuzhou Investment
Group Co., Ltd. acquired 27,102,445 shares of the Company's state-owned legal person shares from
Tibet Autonomous Region State-owned Assets Management Company, representing 25.04% of the
Company's total share capital, and became the Company's largest shareholder; Weifang Bohai Industry
Co., Ltd. acquired 21,535,555 shares, accounting for 19.90% of the Company's total share capital. The
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
aforementioned equity transfer was formally approved by the State-owned Assets Supervision and
Administration Commission of the State Council through document "State-owned Assets Ownership
Letter [2003] No. 25" on May 29, 2003. On August 11, 2003, the Company entered into the Asset
Exchange Agreement with Shandong Wuzhou Investment Group Co., Ltd. and Shandong Wuzhou
Electric Co., Ltd. and executed a significant asset exchange. Following the completion of this exchange,
the total share capital remained unchanged.
On May 22, 2006, the Company convened the "Shareholders Meeting Related to the Split-Share
Reform," where the Company's split-share reform plan was deliberated and approved. All non-tradable
shareholders of the Company granted 2.8 shares for every 10 shares to all tradable shareholders. The
Company completed the implementation of the aforementioned split-share reform plan on June 2, 2006.
On December 22, 2010, with the approval of the China Securities Regulatory Commission through
the document ZJXK [2010] No. 1888 "Approval of Wuzhou Minovo Co., Ltd.'s Major Asset Sale and
Merger with Meihua Holdings Group Co.,Ltd. by Issuing New Shares," the Company issued
enjoyed by its shareholders. On December 24, 2010, BDO CHINA LI XIN DA HUA. Certified Public
Accountants CO., LTD. issued the document LXDHYZ [2010] No. 200 "Capital (Contribution)
Verification Report" for this change in the share capital. On December 31, 2010, the Company obtained
the Certificate of Securities Change Registration Issued by the Shanghai Branch of China Securities
Depository and Clearing Co., Ltd., with the registered share capital for securities of 1,008,236,603
shares.
On March 28, 2011, the Company approved the implementation of the capital reserve conversion to
share capital plan during the Annual Shareholders Meeting for the Year 2010. Based on a foundation of
of 2,708,236,603 shares post-conversion. On April 12, 2011, the Company completed the share change
registration at the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., with the
registered share capital for securities of 2,708,236,603 shares.
According to the resolutions of the Fifth Meeting of the Sixth Board of Directors on April 22, 2011,
the Fourteenth Meeting of the Sixth Board of Directors on February 22, 2012, the 2011 Annual
Shareholders Meeting held on March 22, 2012, and the provisions specified in the amended articles of
association, along with the approval of the China Securities Regulatory Commission through the
document ZJXKZ [2012] No. 1262 "Approval of Meihua Holdings Group Co., Ltd.'s Private Issuance of
Stocks," the Company agreed to privately issue up to 400 million RMB ordinary shares (A shares). On
March 26, 2013, the Company privately issued 399,990,000 RMB ordinary shares (A shares) to specific
investors, resulting in a total share capital of 3,108,226,603 shares after this issuance. On March 29,
Securities Depository and Clearing Co., Ltd.
According to the resolutions of the Fifteenth Meeting of the Eighth Board of Directors on May 30,
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
shareholders meeting held on June 20, 2018, the Company established a stock incentive plan by offering
incentive recipients including directors, senior executives, key management personnel, and core
technical staff working for Meihua Bio, with no change in the registered capital.
According to the resolutions of the 22nd Meeting of the Eighth Board of Directors on December 7,
of 51,565 subscribed shares that were relinquished. After the cancellation, the total share capital of the
Company amounted to 3,108,175,038 shares.
According to the resolutions of the 28th Meeting of the Eighth Board of Directors in June 2019 and
the 2018 Annual Shareholders Meeting on June 24, 2019, the Company repurchased 3,885,400 restricted
shares for cancellation due to the departure of incentive recipients and incomplete individual
performance assessments. After the cancellation, the total share capital of the Company amounted to
According to the resolutions of the Fourth Meeting of the Ninth Board of Directors on April 22,
individual performance assessments. After the cancellation, the total share capital of the Company
amounted to 3,100,021,848.00 shares.
According to the resolutions of the Seventeenth Meeting of the Ninth Board of Directors on May 12,
individual performance assessments. After the cancellation, the total share capital of the Company
amounted to 3,098,619,928 shares.
According to the resolutions of the 27th Meeting of the Ninth Board of Directors on December 15,
repurchased previously. After the cancellation, the total share capital of the Company amounted to
According to the resolutions of the Third Meeting of the Tenth Board of Directors on April 8, 2023,
and the Second Extraordinary Shareholders Meeting for 2023 held on April 28, 2023, the "Proposal to
Change the Company's Registered Capital" was deliberated and approved. According to the "Proposal to
Repurchase the Company’s Shares through Centralized Bidding Transactions" deliberated and approved
at the 2021 Annual Shareholders Meeting, the repurchased shares were exclusively used for cancellation
to reduce the Company's registered capital. The Company has completed the repurchase and has
physically repurchased 99,039,345 shares. After the cancellation of these shares, the total share capital of
the Company will change from 3,042,465,447 shares to 2,943,426,102 shares.
According to the resolutions passed at the 13th Meeting of the 10th Board of Directors held on
September 23, 2024, and the 2024 Second Extraordinary Shareholders’ Meeting held on October 11,
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
resolution from the shareholders’ meeting, the company will use 90,637,352 repurchased shares for
cancellation to reduce its registered capital. After the cancellation of these shares, the company’s total
share capital will be reduced from 2,943,426,102 shares to 2,852,788,750 shares.
After years of issuing bonus shares, allotting new shares, capitalizing retained earnings, and issuing
additional shares, as of June 30, 2025, the company’s total share capital amounts to 2,852,788,750 shares,
with a total share capital of 2,852,788,750 yuan. The registered address is 158 Jinzhu West Road,
Sunshine New City, Building 11, Room 5, Lhasa City. The actual controller is Meng Qingshan.
(II) The Company’s Business Nature and Major Operating Activities
The company is in the food manufacturing industry, with its main products including food flavor
enhancement products (such as monosodium glutamate, disodium 5’-nucleotides, xanthan gum food
grade, etc.), animal nutrition amino acids (such as lysine, threonine, germinal amino acids, valine, etc.),
human medical amino acids (such as glutamine, proline, etc.), and other products (such as xanthan gum
petroleum grade, fertilizers, etc.).
(III) Scope of Consolidated Financial Statements
The company currently consolidates 19 subsidiaries, as detailed in Note 10 and other entities’ intere
sts. The number of subsidiaries included in the consolidated financial statements has increased by 2 com
pared to the previous period. Detailed information about the changes in the consolidation scope is provid
ed in Note 9, which outlines the changes in consolidation scope.
(IV) Approval for Issuance of Financial Statements
These financial statements were approved for issuance by the Company's Board of Directors on
August 19, 2025.
IV. Preparation Basis for Financial Statements
The financial statements of the Company are prepared on a going concern basis.
The Company recognizes and measures the actual transactions and matters based on the Accounting
Standards for Business Enterprises—Basic Standards issued by the Ministry of Finance, specific
Accounting Standards for Business Enterprises, application guidelines for the Accounting Standards for
Business Enterprises, interpretations of the Accounting Standards for Business Enterprises and other
relevant provisions (hereinafter referred to as "The Accounting Standards for Business Enterprises"), and
prepares its financial statements in accordance with these standards, along with the provisions specified
in the Rules for the Information Disclosure and Compilation by Companies Offering Securities to the
Public No.15—General Provisions on Financial Reports (2023 revision).
Applicable □ Not Applicable
The Company has evaluated its ability to continue as a going concern for the 12 months following
the end of the reporting period and has not identified any matters or circumstances casting doubt on its
ability to continue as a going concern. Therefore, these financial statements are prepared on the basis of
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
a going concern assumption.
V. Significant Accounting Policies and Estimates
Specific accounting policies and estimates indicate:
□ Applicable Not Applicable
The financial statements prepared by the company comply with the requirements of the Accounting
Standards for Enterprises and truthfully and completely reflect the company’s financial position,
operating results, changes in shareholders’ equity, cash flow, and other relevant information for the
reporting period.
The Company’s fiscal year runs from January 1 to December 31 of the Gregorian calendar.
Applicable □ Not Applicable
The operating cycle refers to the period from the acquisition of assets for processing to the
realization of cash or cash equivalents. The Company uses 12 months as its operating cycle and as the
criterion for the classification of liquidity of assets and liabilities.
The Company’s functional currency is Renminbi (RMB).
Overseas subsidiaries use the currency of the primary economic environment in which they operate
as their functional currency, and their financial statements are translated into RMB during preparation.
Applicable □ Not Applicable
Items Materiality Standards
The amount of individual provision for bad debts accounts for
Accounts receivable with material individual more than 10% of the total amount of various accounts
provision for bad debts receivable with provision for bad debts and exceeds RMB 20
million.
Accounts receivable with provision for bad debts The amount of recovery or reversal of individual provision for
and with material amounts recovered or reversed bad debts accounts for more than 10% of the total account
during the Current Period and receivable and exceeds RMB 20 million.
The write-off amount of individual account receivable accounts
Significant write-offs of accounts receivable for more than 10% of the total provision for bad debts for
various accounts receivable and exceeds RMB 20 million.
Individual advance payments, accounts payable, contract
Advance payments, accounts payable, contract
liabilities, and other account payable amount to more than 10%
liabilities, and other accounts payable with material
of the total amount of such accounts and exceed RMB 20
amounts outstanding for over one year
million.
The budget amount for individual construction in progress
Material construction in progress
project exceeds RMB 100 million.
Individual investing activities account for more than 10% of the
Material cash flows related to investing activities total cash inflows or outflows received or paid for the investing
activities and exceed RMB 200 million.
Material joint ventures The book value of long-term equity investments in an
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
individual invested party accounts for more than 5% of the
consolidated net assets and exceeds RMB 100 million, or the
investment gains or losses recognized under the equity method
for long-term equity investments account for more than 10% of
the consolidated net profit.
Any single type of estimated liability accounts for more than
Material contingent matters 10% of the total estimated liabilities and exceeds RMB 100
million.
Different Controls
Applicable □ Not Applicable
implementation of the enterprise merger meet one or more of the following criteria, treat the multiple
transactions as a package deal for accounting treatment.
(1) These transactions are concluded simultaneously or taking into account their mutual impacts;
(2) These transactions collectively achieve a complete business outcome;
(3) The occurrence of one transaction depends on the occurrence of at least one other transaction;
(4) A transaction is uneconomical when considered alone, but becomes economical when
considered together with other transactions.
Enterprises participating in the merger are subject to the same ultimate control by one party or
multiple parties, and such control is not temporary, constituting a merger of enterprises under the same
control.
The assets and liabilities obtained by the Company in the enterprise merger are measured at the
carrying amounts of the merged party's assets and liabilities (including goodwill formed by the ultimate
controlling party from the acquisition of the merged party) in the consolidated financial statements of the
ultimate controlling party as of the merger date. In case of any difference between the carrying amount
of net assets obtained in the merger and the carrying amount (or total face value of shares issued) of the
consideration paid for the merger, the share premium in the capital reserve will be adjusted, and if the
share premium in the capital surplus is insufficient to offset, the retained earnings will be adjusted.
If there are contingent considerations requiring the recognition of estimated liabilities or assets and
the difference between the amount of these estimated liabilities or assets and the subsequent settlement
amount of contingent considerations, the capital surplus (capital premium or share premium) will be
adjusted. If the capital surplus is insufficient, the retained earnings will be adjusted.
For enterprise mergers achieved through multiple transactions, ultimately forming a package deal,
each transaction within it should be accounted for as one acquisition of control. For transactions not
constituting a package deal, on the day control is acquired, the capital reserve is adjusted based on the
difference between the initial investment cost of long-term equity investments and the book value of the
long-term equity investments before the merger plus the book value of the consideration newly paid for
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
further acquisition of shares on the merger date, with retained earnings being adjusted for any shortfall in
the capital reserve. Regarding equity investments held before the merger date, other comprehensive
income accounted for by the equity method or recognized by financial instruments and accounted for
and recognized by the measurement standards will not undergo accounting treatment until the
investment is disposed of, at which time it will be accounted for based on the same principles as directly
disposing of assets or liabilities associated with the invested party. Any changes in the owners’ equity,
excluding net profit and loss, other comprehensive income, and profit distribution in the net assets of the
invested party, accounted and recognized through the equity method, will not be accounted for until the
disposal of the investment, at which point they are transferred to the profit and loss for the current
period.
Enterprises participating in the merger are not subject to the same ultimate control by one party or
multiple parties before and after the merger, constituting a merger of enterprises not under the same
control.
On the acquisition date, the assets paid as consideration for the enterprise merger and the liabilities
incurred or assumed are measured at fair value, and the difference between the fair value and their
carrying amounts is recognized in the profit and loss for the current period.
The difference between the merger cost and the identifiable fair value share of net assets acquired
from the acquired entity in the merger, if positive, is recognized as goodwill; if negative, it is recognized
in the profit and loss for the current period after thorough review.
For enterprise merger not under the same control achieved through multiple exchanges and
transactions in a phased manner, constituting a package deal, each transaction within it should be
accounted for as one acquisition of control. Where transactions do not constitute a package deal, and
equity investments held prior to the merger date are accounted for using the equity method, the initial
investment cost of those investments should be the aggregate of the book value of the equity investments
in the acquired entity as of the acquisition date and any newly added investment made on the acquisition
date. Other comprehensive income from equity investments held prior to the acquisition date and
accounted for and recognized using the equity method should be accounted for upon disposal of the
investment, based on the same basis as directly disposing of the relevant assets or liabilities of the
invested party. For equity investments recognized using financial instruments and accounted for using
the measurement standards, the initial investment cost on the merger date should be the sum of the
equity investment's fair value on the merger date and the newly added investment cost. The difference
between the fair value and book value of the originally held equity, along with the accumulated fair
value changes previously recognized in other comprehensive income, should all be transferred to
investment income for the current period as of the merger date.
Intermediary expenses such as audit, legal services, evaluation consultation, and other directly
related expenses incurred for the enterprise merger are recognized in the profit and loss for the current
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
period at the time of occurrence. Transaction costs for issuing equity securities for the enterprise merger
can be directly attributed to equity transactions and deducted from equity.
Statements
Applicable □ Not Applicable
Control refers to the power held by the investing party over the invested party, enjoying variable
returns by involvement in the relevant activities carried by the invested party and having the ability to
influence the amount of returns through exercising power over the invested party.
The Company makes judgments on whether it controls the invested party based on a comprehensive
consideration of all relevant facts and circumstances. Once changes in relevant facts and circumstances
lead to changes in the elements involved in defining control, the Company will conduct a reassessment.
The relevant facts and circumstances mainly include:
(1) The purpose of establishing the invested party.
(2) The invested party's relevant activities and how decisions are made regarding those activities.
(3) Whether the rights enjoyed by the investing party currently allow it to dominate the invested
party's relevant activities.
(4) Whether the investing party gains variable returns by involvement in the invested party's
relevant activities.
(5) Whether the investing party has the ability to influence the amount of returns through
exercising power over the invested party.
(6) The relationship between the investing party and other parties.
The consolidation scope of the Company's consolidated financial statements is determined based on
control, and all subsidiaries (including separate entities controlled by the Company) are included in the
consolidated financial statements.
The Company prepares the consolidated financial statements based on the financial statements of
the Company and its subsidiaries, and other relevant information. When preparing the consolidated
financial statements, the Company views the enterprise group as a single accounting entity and reflects
the overall financial position, operating results and cash flows of the enterprise group in accordance with
the recognition, measurement, and reporting requirements of relevant Accounting Standards for Business
Enterprises and the unified accounting policies.
The accounting policies and periods adopted by all subsidiaries included in the consolidation scope
of the consolidated financial statements are consistent with those of the Company. In instances where a
subsidiary's accounting policies or periods differ from those of the Company, necessary adjustments
should be made in the preparation of the consolidated financial statements to align with the Company's
accounting policies and periods.
When preparing the consolidated financial statements, the impact of internal transactions between
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
the Company and its subsidiaries, as well as between subsidiaries, on the consolidated balance sheet,
consolidated income statement, consolidated cash flow statements, and consolidated statement of
changes in equity is offset. If there are differences in the recognition of the same transaction from the
perspective of the consolidated financial statements of the enterprise group and from the perspective of
the Company or a subsidiary as the accounting entity, adjustments are made from the perspective of the
enterprise group for such transactions.
The portions of subsidiary owners' equity, current net profit, and current comprehensive income
attributable to minority shareholders are separately presented under the owner's equity item in the
consolidated balance sheets, as well as under the net profit item and in the total comprehensive income
item in the consolidated income statements. If the portion of the current losses borne by minority
shareholders exceeds the balance of minority shareholders' equity derived from their initial ownership
interests in the subsidiary, minority shareholders’ interest will be deducted accordingly.
For subsidiaries acquired through enterprise merger under the same control, their financial
statements are adjusted based on the fair value of their assets and liabilities (including goodwill formed
by the ultimate controlling party from acquisition of the subsidiary) in the financial statements of the
ultimate controlling party.
For subsidiaries acquired through enterprise merger not under the same control, their financial
statements are adjusted based on the fair value of identifiable net assets as of the acquisition date.
(1). Addition of Subsidiaries or Businesses
If subsidiaries or businesses are added due to enterprise merger under the same control during the
reporting period, the beginning balance in the consolidated balance sheet are adjusted; the income,
expenses, and profits from the beginning of the current period of subsidiary or business merger to the
end of the reporting period are included in the consolidated income statement; the cash flows from the
beginning of the current period of subsidiary or business merger to the end of the reporting period are
included in the consolidated cash flow statement, and related items in the comparative statements are
adjusted, with the reporting entity after the merger being considered as having existed since the point
when control commenced by the ultimate controlling party.
If control can be exercised over the invested party under the same control due to additional
investments or other reasons, it is deemed that all parties involved in the merger existed in their current
state and performed adjustment as of the commencement of control by the ultimate controlling party. For
equity investments held before the control over the merged party is obtained, any profit or loss, other
comprehensive income, and other changes in net assets recognized between the acquisition date of the
original equity or the date when the merging party and the merged party are under common control,
whichever is later, are offset against retained earnings or the profit and loss for the current period at the
beginning of the comparative reporting period.
If during the reporting period, subsidiaries or businesses are added due to the enterprise merger not
under the same control, the beginning balance in the consolidated balance sheet remain unchanged. The
revenues, expenses, and profits of the subsidiaries or businesses from the acquisition date to the end of
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
the reporting period are included in the consolidated income statement, while the cash flows from the
acquisition date to the end of the reporting period of the subsidiaries or businesses are included in the
consolidated cash flow statement.
If control can be exercised over the invested party not under the same control, the Company
remeasures the equity interests held in the acquired party prior to the acquisition date at their fair value
on the acquisition date, with the difference between the fair value and their book value recognized in the
investment income for the current period. For the equity interests held in the acquired party before the
acquisition date that involve other comprehensive income accounted for using the equity method and
other changes in owner's equity excluding net profits and losses, other comprehensive income, and profit
distribution, other comprehensive income and other changes in owner's equity related to them are
transferred to the investment income for the current period as of the acquisition date, except for other
comprehensive income arising from the invested party’s remeasurement of the changes in the net
liabilities or assets in the defined benefit plan.
(2). Disposal of Subsidiaries or Businesses
During the reporting period, if the Company disposes of subsidiaries or businesses, the revenue,
expenses, and profits of the subsidiaries or businesses from the beginning of the period to the disposal
date are included in the consolidated income statement, while the cash flows of the subsidiaries or
businesses from the beginning of the period to the disposal date are included in the consolidated cash
flow statement.
When control over the invested party is lost due to the disposal of a portion of equity investments or
other reasons, the Company remeasures the remaining equity investments at their fair value on the date
such control is lost. The sum of the consideration received from the disposal of equity and the fair value
of the remaining equity, reduced by the proportionate share of net assets and goodwill continuously
calculated based on the original ownership percentage since the acquisition or merger date, is recognized
in the investment income for the period such control is lost. Other comprehensive income or other
changes in owner's equity (excluding net profit and loss, other comprehensive income and profit
distribution) related to the equity investments of the original subsidiary are transferred to the current
investment income when control is lost, except for other comprehensive income arising from the
invested party’s remeasurement of the changes in the net liabilities or assets in the defined benefit plan.
When the disposal of equity investments in subsidiaries is performed through multiple transactions
in a phased manner until control is lost, if the terms, conditions, and economic impact of each
transaction related to the disposal of equity investments in subsidiaries meet one or more of the
following criteria, it indicates that the multiple transaction matters should be accounted for as a package
deal:
A. These transactions are concluded simultaneously or taking into account their mutual impacts;
B. These transactions collectively achieve a complete business outcome;
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
C. The occurrence of one transaction depends on the occurrence of at least one other transaction;
D. A transaction is uneconomical when considered alone, but becomes economical when considered
together with other transactions.
When transactions involving the disposal of equity investments in subsidiaries until control is lost
are part of a package deal, the Company accounts for each transaction as a single disposal of the
subsidiary and loss of control. However, the difference between the proceeds from each disposal and the
proportionate share of net assets of the subsidiary, as related to the disposal of investment, is recognized
as other comprehensive income in the consolidated financial statement prior to the loss of control, and is
subsequently transferred to the profit or loss for the period when control is lost.
When transactions involving the disposal of equity investments in subsidiaries until control is lost
are not part of a package deal, the Company accounts for them according to the relevant policies for
partially disposing of equity investments in subsidiaries without losing control before control is lost and
according to the regular disposal method for disposal of subsidiaries when control is lost.
(3). Acquisition of minority equity in subsidiary
For the difference between the long-term equity investment newly acquired due to the acquisition
of minority equity by the Company and the proportionate share of net assets continuously calculated
based on the increased ownership percentage since the acquisition date (or merger date), the share
premium in the capital reserve in the consolidated balance sheet is adjusted to offset. If the share
premium is insufficient to offset the difference, the retained earnings are adjusted to offset.
(4). Partial disposal of equity investments in subsidiaries without losing control
For the difference between the disposal proceeds from partial disposal of long-term equity
investments in subsidiaries without losing control and the proportionate share of net assets held in
subsidiaries continuously calculated from the acquisition or merger date due to the disposal of long-term
equity investments, adjustments are made to the share premium in the capital reserve in the consolidated
balance sheet. If the share premium is insufficient to offset the difference, adjustments are made to the
retained earnings.
Applicable □ Not Applicable
Based on factors such as the structures and legal forms of joint arrangements, terms agreed upon,
and other relevant facts and circumstances, the Company classifies joint arrangements into joint
operations and joint ventures. Joint operations refer to joint arrangements in which the parties involved
share the assets and liabilities related to the arrangements. Joint ventures refer to joint arrangements in
which the parties involved have rights solely to the net assets of the arrangements.
The Company recognizes the following items related to its interests in joint operations and accounts
for them in accordance with relevant Accounting Standards for Business Enterprises:
(1). Recognition of assets held separately and recognition of jointly held assets based on
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
proportional ownership.
(2). Recognition of liabilities held separately and recognition of jointly held liabilities based on
proportional ownership.
(3). Recognition of revenue from the sale of its share of output from joint operations.
(4). Recognition of revenue from the sale of output from joint operations based on proportional
ownership.
(5). Recognition of expenses incurred separately and recognition of expenses incurred by joint
operations based on proportional ownership.
When the Company contributes or sells assets (excluding those constituting a business) to a joint
operation, it recognizes only the portion of the profit or loss attributable to other parties involved in the
joint operation until the assets are sold to a third party by the joint operation. If any assets contributed or
sold incur impairment losses as per the Accounting Standards for Business Enterprises No. 8 - Asset
Impairment, the Company recognizes the full amount of such loss.
When the Company acquires assets (excluding those constituting a business) from a joint operation,
it recognizes only the portion of the profit or loss attributable to other parties involved in the joint
operation until the assets are sold to a third party by the joint operation. If any assets acquired incur
impairment losses as per the Accounting Standards for Business Enterprises No. 8 - Asset Impairment,
the Company recognizes the loss in proportion to its share.
The Company does not exercise joint control over joint operations. If the Company shares the
assets and liabilities related to the joint operations, it should account for them in accordance with the
principles described above; otherwise, it should account for them in accordance with the provisions
specified in the relevant Accounting Standards for Business Enterprises.
Cash equivalents refer to short-term investments (generally maturing within three months from the
purchase date) that are highly liquid, easily convertible into a known amount of cash, and have a
minimal risk of changes in value.
When preparing the cash flow statements, the Company recognizes cash on hand as well as deposits
that are readily available for payment as cash and investments meeting the following criteria as cash
equivalents: short-term maturity (generally within three months from the date of acquisition), strong
liquidity, cash easily convertible into known amounts, and minimal risk of value changes.
Applicable □ Not Applicable
Foreign currency transactions are initially recognized using the exchange rate close to the spot rate
on the transaction date to convert the foreign currency amounts into RMB for accounting purposes.
Monetary items denominated in foreign currencies are translated at the spot exchange rate on the
balance sheet date. Any exchange differences arising from this, except for those related to foreign
currency borrowings specifically incurred for the acquisition and construction of qualifying assets and
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
treated under the principle of capitalizing borrowing costs, are recorded in the profit or loss for the
current period. Non-monetary items denominated in foreign currencies and measured at historical cost
are still translated using the spot exchange rate on the transaction date, without altering their recorded
functional currency amount.
For non-monetary items denominated in foreign currencies and measured at fair value, the
Company uses the spot exchange rate on the fair value determination date for translation. The difference
between the translated functional currency amount and the original functional currency amount is treated
as changes in fair value (including changes in exchange rate) and recorded in the profit or loss for the
current period or recognized as other comprehensive income.
Assets and liabilities in the balance sheet are translated using the spot exchange rate on the balance
sheet date. For equity items, except for “retained earnings,” other items are translated using the spot
exchange rate at the transaction date. Revenues and expenses in the income statement are translated
using the exchange rate close to the spot rate on the transaction date. The exchange differences arising
from the above translation are recognized in other comprehensive income.
When disposing of foreign operations, the foreign currency translation differences related to the
foreign operations listed in other comprehensive income in the balance sheet will be reclassified from
other comprehensive income to profit or loss in the disposal period. When the proportion of foreign
operations equity is reduced but control over the foreign operation is not lost due to partial equity
investment disposal or other reasons, the foreign currency translation differences related to the disposed
portion of the foreign operation will be attributed to non-controlling interests and not reclassified to
profit or loss. When disposing of part of the equity of a foreign operation that is an associate or joint
venture, the foreign currency translation differences related to the foreign operation will be reclassified
to profit or loss in proportion to the disposal of the foreign operation.
Applicable □ Not Applicable
The Company recognizes a financial asset or financial liability when it becomes a party to a
financial instrument contract.
The effective interest rate method refers to the method of calculating the amortized cost of a
financial asset or a financial liability and apportioning the interest income or interest expenses into each
accounting period.
The effective interest rate is the rate used to discount estimated future cash flows during the
expected life of a financial asset or financial liability to the book balance of the financial asset or the
amortized cost of the financial liability. In the determination of the effective interest rate, the expected
cash flows are estimated based on all contractual terms of the financial asset or financial liability (such
as prepayment, extension, call options, or similar options), excluding expected credit losses.
The amortized cost of a financial asset or financial liability is calculated by deducting the principal
repaid from the initially recognized amount, adding or deducting the cumulative amortized amount
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
resulting from the difference between the initially recognized amount and the amount payable at
maturity using the effective interest rate method, and then deducting any cumulative provision for
impairment losses (applicable only to financial assets).
The Company classifies financial assets into the following three categories based on the business
model for managing financial assets and the contractual cash flow characteristics of the financial assets:
(1). Financial assets measured at amortized cost.
(2). Financial assets measured at fair value with changes recognized in other comprehensive
income.
(3). Financial assets measured at fair value with changes recorded in the profit or loss for the
current period.
Financial assets are measured at fair value at initial recognition. However, if accounts receivable or
notes receivable arising from sales of goods or provision of services do not contain material financing
components or consider financing components not exceeding one year, they are measured at transaction
price for initial measurement.
For financial assets measured at fair value with changes recorded in the profit or loss for the current
period, related transaction costs are directly recorded in the profit or loss for the current period, while
transaction costs for other categories of financial assets are recognized in their initially recognized
amounts.
The subsequent measurement of financial assets depends on their classification, and all affected
financial assets are reclassified only when the Company changes the business model for managing
financial assets.
(1) Financial assets classified as being measured at amortized cost
When the contractual terms of financial assets specify that cash flows arising on a specific date
solely comprise payments of principal and interest based on the outstanding principal amount, and the
business model for managing those financial assets aims to collect contractual cash flows, the Company
classifies them as being measured at amortized cost. Financial assets classified as being measured at
amortized cost include money funds and certain notes receivable, accounts receivable, other receivables,
debt investments, long-term receivables, etc that are measured at amortized cost.
The Company recognizes interest income on such financial assets using the effective rate method,
and conducts subsequent measurement at amortized cost. The gains or losses incurred from their
impairment, derecognition and modification are recorded in the profit or loss for the current period.
Except for circumstances mentioned below, the Company determines interest income by multiplying the
book balance of the financial assets by the effective interest rate:
interest income by applying their amortized cost and the effective interest rate adjusted for credit since
initial recognition.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
credit impaired in subsequent periods, the Company calculates their interest income by applying their
amortized cost and the effective interest rate. If the credit risk of the financial instruments improves in
subsequent periods such that there is no longer any credit impairment, the Company calculates the
interest income by multiplying the book balance of the financial assets by the effective interest rate.
(2) Financial assets classified as being measured at fair value with changes recognized in other
comprehensive income
When the contractual terms of financial assets specify that cash flows arising on a specific date
consist solely of payments of principal and interest based on the outstanding principal amount, and the
business model for managing such financial asset aims to both collect contractual cash flows and sell the
financial assets, the Company categorizes the financial assets as being measured at fair value with
changes recognized in other comprehensive income.
The Company recognizes interest income on such financial assets using the effective rate method.
Except for interest income, impairment losses, and exchange differences that are recorded in the profit or
loss for the current period, all other changes in fair value are recognized in other comprehensive income.
When such financial assets are derecognized, the cumulative gains or losses previously recognized in
other comprehensive income are transferred from other comprehensive income and recorded in the profit
or loss for the current period.
Notes receivable and accounts receivable measured at fair value with changes recognized in other
comprehensive income are presented as Receivables Financing, and other financial assets of this
category are presented as other debt investments. Among them, other debt investments due within one
year from the balance sheet date are presented as non-current assets due within one year, and other debt
investments originally due within one year are presented as other current assets.
(3) Financial assets designated as being measured at fair value with changes recognized in other
comprehensive income
Upon initial recognition, the Company may irrevocably designate non-trading equity instrument
investments as financial assets measured at fair value with changes recognized in other comprehensive
income, on a single financial asset basis.
Changes in fair value of such financial assets are recognized in other comprehensive income
without the need of provision for impairment reserves. When these financial assets are derecognized, the
cumulative gains or losses previously recognized in other comprehensive income are transferred from
other comprehensive income and recognized in retained earnings. During the period in which the
Company holds these equity instrument investments, when the Company's right to receive dividends has
been established and it is probable that economic benefits associated with the dividends will flow to the
Company, and the amount of dividends can be reliably measured, dividend income is recognized and
recorded in the profit or loss for the current period. The Company presents these financial assets under
the other equity instrument investment item.
Equity instrument investments are classified as financial assets measured at fair value with changes
recorded in the profit or loss for the current period if they meet any of the following conditions: the
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
primary objective of acquiring the financial assets is for near-term sale; at initial recognition, they are
part of the identifiable financial asset instrument portfolio under centralized management, and there is
objective evidence of a short-term profit pattern; they are derivative instruments (excluding those
meeting the definitions listed in financial guarantee contracts and those designated as effective hedging
instruments).
(4) Financial assets classified as being measured at fair value with changes recorded in the profit or
loss for the current period
Financial assets that do not meet the conditions for classification as being measured at amortized
cost or fair value with changes recognized in other comprehensive income, and that are not designated as
being measured at fair value with changes recognized in other comprehensive income, are classified as
financial assets measured at fair value with changes recorded in the profit or loss for the current period.
The Company subsequently measures these financial assets at fair value, with gains or losses
arising from changes in fair value and income from dividends and interest associated with these financial
assets recorded in the profit or loss for the current period.
The Company presents these financial assets under the items of financial assets held for trading and
other non-current financial assets based on their liquidity.
(5) Financial assets designated as being measured at fair value with changes recorded in the profit
or loss for the current period
At the time of initial recognition, the Company may irrevocably designate financial assets as being
measured at fair value with changes in fair value recorded in the profit or loss for the current period on a
single financial asset basis in order to eliminate or significantly reduce accounting mismatches.
If a hybrid contract contains one or more embedded derivative instruments and its main contract
does not fall under the aforementioned financial assets, the Company may designate it as a whole as a
financial instrument measured at fair value with changes recorded in the profit or loss for the current
period. However, the following exceptions apply:
hybrid contract.
analyze to determine that the embedded derivative instruments therein should not be split. For example,
in cases where the prepayment right for loans is embedded, allowing the holder to repay the loan at an
amount close to the amortized cost, this prepayment right does not need to be split.
The Company subsequently measures such financial assets at fair value, with gains or losses arising
from changes in fair value and income from dividends and interest associated with these financial assets
recorded in the profit or loss for the current period.
The Company presents these financial assets under the items of financial assets held for trading and
other non-current financial assets based on their liquidity.
At the time of initial recognition, the Company classifies the financial instruments or its
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
components as financial liabilities or equity instruments based on the contractual terms of the financial
instruments and their underlying economic substance, rather than solely on legal form, taking into
consideration the definitions of financial instruments and equity instruments. At the time of initial
recognition, financial liabilities are classified as: Financial assets measured at fair value with changes in
fair value recorded in the profit or loss for the current period, other financial assets, and derivative
instruments designated as effective hedging instruments.
At the time of initial recognition, financial liabilities are measured at fair value. For financial
liabilities measured at fair value with changes in fair value recorded in the profit or loss for the current
period, related transaction costs are directly recorded in the profit or loss for the current period, while for
other types of financial liabilities, related transaction costs are recognized in the initially recognized
amount.
Subsequent measurement of financial liabilities depends on their classification:
(1). Financial liabilities measured at fair value with changes in fair value recorded in the profit or
loss for the current period:
Such financial liabilities include financial liabilities held for trading (including derivative
instruments falling under financial liabilities) and financial liabilities designated as being measured at
fair value with changes in fair value recorded in the profit or loss for the current period.
Financial liabilities are classified as financial liabilities held for trading if they meet any of the
following conditions: The primary purpose of holding the relevant financial liabilities is for sale or
repurchase in the near term; the relevant financial liabilities are part of identifiable financial instrument
portfolio under centralized management and there is objective evidence that the enterprise adopts a
short-term profit-taking mode in the near term; the relevant financial liabilities fall under derivative
instruments, except those specifically designated and effective as hedging instruments and meeting the
requirements specified in the financial guarantee contracts. Financial liabilities held for trading
(including derivative instruments falling under financial liabilities) are measured at fair value in the
subsequent periods and all changes in fair value, except for those associated with hedge accounting, are
recorded in the profit or loss for the current period.
At the time of initial recognition, for the purpose of providing more pertinent accounting
information, the Company irrevocably designates financial liabilities meeting any of the following
conditions as financial liabilities measured at fair value with changes in fair value recorded in the profit
or loss for the current period:
based on fair value and in accordance with the enterprise risk management or investment policies
specified in the formal written documentation, and report to key management personnel within the
Company based on the management and assessment outcomes.
The Company subsequently measures such financial liabilities at fair value. All changes in fair
value, excluding those resulting from fluctuations in the Company’s own credit risk and recorded in
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
other comprehensive income, are recorded in the profit or loss for the current period. Unless recording
changes in fair value resulting from fluctuations in the Company's own credit risk in other
comprehensive income would result in or exacerbate accounting mismatches in the profit or loss, the
Company will record all changes in fair value (including the amount affected by changes in its own
credit risk) into the profit or loss for the current period.
(2). Other financial liabilities
The Company classifies financial liabilities, excluding those listed below, as being measured at
amortized cost, subsequently measures them at amortized cost using the effective rate method, and
records the gains or losses arising from derecognition or amortization into the profit or loss for the
current period:
for the current period.
derecognition or the continued involvement in the transferred financial assets.
loan commitments made at interest rates below market rates and not falling within scenario 1) in this
article.
Financial guarantee contracts refer to contracts where the issuer is obligated to compensate the
contract holder for a specified amount if a specific debtor is unable to pay its debt in accordance with the
original or modified debt instrument terms when due. Financial guarantee contracts not designated as
financial liabilities measured at fair value with changes in fair value recorded in the profit or loss for the
current period are measured at the loss reserve amount or the initially recognized amount less the
cumulative amortization amount within the guarantee period, whichever is higher, after the initial
recognition.
(1) Financial assets are derecognized and written-off from the accounts and the balance sheet, when
one of the following conditions is met:
financial assets.
(2) Conditions for derecognition of financial liabilities
If the present obligation of a financial liability (or part thereof) has been discharged, the financial
liability (or part thereof) should be derecognized.
If the Company enters into an agreement with the lender to replace the original financial liability
with a new one, and the terms of the new financial liability are substantially different from those of the
original, or substantial modifications are made to the terms of the original financial liability (or part
thereof), the original financial liability should be derecognized, and simultaneously a new financial
liability should be recognized. The difference between the book value and the consideration paid
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(including non-cash assets transferred out or liabilities assumed) should be recorded in the profit or loss
for the current period.
When the Company repurchases a portion of its financial liabilities, it should allocate the overall
book value of the financial liability based on the proportions of the portion requiring continued
recognition and the portion requiring derecognition in the overall fair value on the acquisition date. The
difference between the book value allocated to the portion requiring derecognition and the consideration
paid (including non-cash assets transferred out or liabilities assumed) should be recorded in the profit or
loss for the current period.
When the Company transfers financial assets, it assesses the level of risks and rewards retained in
the ownership of the financial assets and deals with the following situations separately:
(1). If the Company transfers almost all risks and rewards related to the ownership of the financial
assets, it should derecognize the financial assets and separately recognize the rights and obligations
arising from the transfer or retention as assets or liabilities.
(2). If the Company retains almost all risks and rewards related to the ownership of the financial
assets, it should continue to recognize the financial assets.
(3). If the Company neither transfers nor retains almost all risks and rewards related to the
ownership of the financial assets (i.e., in situations other than those specified in (1) and (2) above), it
deals with the following situations separately based on whether it retains control of the financial assets:
financial assets and separately recognize the rights and obligations arising from the transfer or retention
as assets or liabilities.
relevant financial assets based on the extent of its continued involvement in the transferred financial
assets and correspondingly recognize the relevant financial liabilities. The extent of continued
involvement in the transferred financial assets refers to the extent to which the Company bears the risks
or rewards related to the transferred financial assets.
When determining whether the conditions for derecognition of financial assets are met, the
Company applies the principle of substance over form. The Company distinguishes the transfer of
financial assets as either complete or partial transfer.
(1). When the complete transfer of financial assets meets the conditions for derecognition, the
difference between the following two amounts should be recorded in the profit or loss for the current
period:
changes previously recognized in other comprehensive income that correspond to the derecognized
portion (financial assets involving transfer are measured at fair value with changes recognized in other
comprehensive income).
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(2). When a portion of financial assets is transferred and the transferred portion meets the
conditions for derecognition as a whole, the book value of the financial assets as a whole before the
transfer is apportioned between the derecognized portion and the continuously recognized portion (in
this case, any servicing assets retained should be treated as part of the continuously recognized financial
assets) based on their relative fair values on the transfer date. The difference between the following two
amounts is recorded in the profit or loss for the current period:
previously recognized in other comprehensive income that correspond to the derecognized portion
(financial assets involving transfer are measured at fair value with changes recognized in other
comprehensive income).
When the transfer of financial assets does not meet the conditions for derecognition, the Company
continues to recognize the financial assets, and recognizes the consideration received as a financial
liability.
For financial assets or financial liabilities with support by active markets, their fair values are
determined based on quoted prices in those markets, unless there are lock-up periods specific to them.
For financial assets with specific lock-up periods, their fair values are determined by deducting the
amount of compensation demanded by market participants for bearing the risk of being unable to sell the
financial assets in the public market during the specified period from the quoted prices in active markets.
Quoted prices in active markets include those that are easily and regularly obtainable from exchanges,
dealers, brokers, industry groups, pricing agencies, or regulatory authorities and represent market
transactions that actually and frequently occur on a fair trading basis.
For financial assets initially acquired or derived or financial liabilities assumed, their fair values
should be determined based on the trading prices in the market.
For financial assets or liabilities without support by active markets, their fair values are determined
using valuation techniques. During valuation, the Company employs valuation techniques that are
applicable under current circumstances and supported by sufficient available data and other information,
selects input values consistent with the characteristics of assets or liabilities that market participants
would consider in transactions involving such assets or liabilities and prioritizes the use of relevant
observable input values whenever possible. When it's not feasible or practical to obtain relevant
observable input values, unobservable input values are utilized instead.
The Company accounts for impairment and recognizes provision for losses based on the expected
credit losses for financial assets measured at amortized cost, financial assets classified as being
measured at fair value with changes in fair value recognized in other comprehensive income, lease
receivables, contract assets, loan commitments not falling under financial liabilities measured at fair
value with changes in fair value recorded in the profit or loss for the current period, and financial
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
liabilities not measured at fair value with changes in fair value recorded in the profit or loss for the
current period, and financial guarantee contracts for financial liabilities arising from the transfer of
financial assets that do not meet the derecognition criteria or the continued involvement in the
transferred financial assets.
Expected credit losses refer to the weighted average of credit losses on financial instruments
weighted by the risk of default. Credit losses represent the difference between all contractual cash flows
discounted by the Company at the original effective interest rate and receivable by the Company
according to the contract and all cash flows expected to be received by the Company, namely, the present
value of all cash shortfalls. For financial assets purchased or originated by the Company with incurred
credit impairment, impairment is discounted at the effective interest rate adjusted for credit of such
financial assets.
The Company measures the provision for losses on all contract assets, notes receivable and
accounts receivable derived from transactions subject to revenue standards, as well as lease
receivables/financing lease receivables/operating lease receivables derived from transactions subject to
lease standards, at an amount equal to the expected credit losses over the entire remaining term.
For financial assets purchased or originated with incurred credit impairment, only the cumulative
changes in expected credit losses over the entire remaining term since initial recognition are recognized
as the provision for losses on the balance sheet date. On each balance sheet date, the changes in expected
credit losses over the entire remaining term are recognized as impairment losses or gains to be recorded
in the profit or loss for the current period. Even if the expected credit losses over the entire remaining
term determined on the balance sheet date are lower than the expected credit losses reflected by the
estimated cash flows at the time of initial recognition, the favorable changes in expected credit losses are
also recognized as impairment gains.
Except for the aforementioned financial assets measured using simplified measurement methods
and purchased or originated financial assets with incurred credit impairment, the Company assesses the
credit risk of relevant financial instruments on each balance sheet date to determine whether it has
significantly increased since initial recognition, and measures the provision for losses and recognizes
expected credit losses and their changes according to the following circumstances:
(1). If the credit risk of the financial instrument has not significantly increased since initial
recognition and is in Stage 1, the provision for losses should be measured at an amount equal to the
expected credit losses within the next 12 months for the financial instrument, and interest income should
be calculated based on the book balance and the effective interest rate.
(2). If the credit risk of the financial instrument has significantly increased since initial recognition
but has not incurred credit impairment, it is in Stage 2. The provision for losses should be measured at an
amount equal to the expected credit losses over the entire remaining term for the financial instrument,
and interest income should be calculated based on the book balance and the effective interest rate.
(3). If the financial instrument has incurred credit impairment since initial recognition, it is in
Stage 3. The Company should measure the provision for losses at an amount equal to the expected credit
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
losses over the entire remaining term for the financial instrument, and calculate interest income based on
the amortized cost and the effective interest rate.
The increased or reversed amount of the provision for credit losses of financial instruments is
recognized as impairment losses or gains to be recorded in the profit or loss for the current period. For
financial assets, excluding those classified as being measured at fair value with changes in fair value
recorded in other comprehensive income, the provision for credit losses should be used to offset their
book balance. For financial assets classified as being measured at fair value with changes recorded in
other comprehensive income, the Company recognizes their provision for credit losses in other
comprehensive income without reducing their book value presented in the balance sheet.
In cases where the Company had measured the provision for losses at an amount equivalent to the
expected credit losses over the entire remaining term of a financial instrument during the previous
accounting period, but as of the current balance sheet date, the financial instrument no longer qualifies
under the condition of a significant increase in credit risk since initial recognition, the Company should
measure the provision for losses of the financial instrument on the current balance sheet date at an
amount equivalent to the expected credit losses within the next 12 months, with the reversed amount of
impairment losses arising therefrom as impairment gains to be recorded in the profit or loss for the
current period.
(1). Significant increase in credit risk
The Company utilizes reasonable and substantiated forward-looking information to assess whether
the credit risk of financial instruments has significantly increased since initial recognition, by comparing
the risk of default occurring on the balance sheet date with that on the initial recognition date. For
financial guarantee contracts, the Company considers the date on which it becomes the party who makes
irrevocable commitment as the initial recognition date when applying the impairment provisions for
financial instruments.
The Company will consider the following factors in assessing whether the credit risk has
significantly increased:
or expected;
technological environment in which the debtor operates;
or in the quality of guarantees or credit enhancements provided by a third party, which is expected to
reduce the economic incentives for the debtor to repay as per the contractual terms or affect the
probability of default;
behavior of the debtor;
financial instruments.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
If, as of the balance sheet date, the Company determines that a financial instrument exhibits only
low credit risk, it assumes that the credit risk of the financial instrument has not significantly increased
since initial recognition. If the financial instrument carries low default risk, the borrower demonstrates a
strong ability to meet its contractual cash flow obligations in the short term, and even if there are adverse
changes in the economic and operating environment over an extended period, it does not necessarily
impair the borrower's ability to fulfill its contractual cash flow obligations, then the financial instrument
is considered to carry low credit risk.
(2). Financial assets with credit impairment
A financial asset is deemed to have become credit impaired in the occurrence of one or more events
that are expected to have an adverse impact on its future cash flows. Evidences for credit impairment of
financial assets include the following observable information:
the debtor's financial difficulties, which would not otherwise be made under any other circumstances;
market for the financial asset;
of credit losses.
Credit impairment of financial assets may result from the combined effect of multiple events and
may not necessarily be attributable to individually identifiable events.
(3). Determination of expected credit losses
The Company determines expected credit losses on financial instruments based on individual and
collective assessments. When assessing expected credit losses, the Company should consider reasonable
and substantiated information regarding past events, current conditions, and forecasts of future economic
conditions.
The Company classifies financial instruments into different portfolios based on their common credit
risk characteristics. Common credit risk characteristics used by the Company include: types of financial
instruments, aging categories, etc. The individual assessment criteria for and collective credit risk
characteristics of relevant financial instruments are detailed in the accounting policies for those financial
instruments.
The Company determines expected credit losses on relevant financial instruments as follows:
contractual cash flows receivable by the Company and the cash flows expected to be received.
contractual cash flows receivable by the Company and the cash flows expected to be received.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
payments that the Company would make to compensate the contract holder for the credit losses incurred
minus the amounts expected to be received from the contract holder, the debtor, or any other party.
credit impaired at initial recognition or originated as credit impaired, credit losses represent the
difference between the book value of the financial asset and the present value of estimated future cash
flows discounted at the original effective interest rate.
The factors reflected in the Company's method for measuring expected credit losses on financial
instruments include: unbiased probability-weighted average amounts determined by evaluating a range
of possible outcomes; the time value of money; reasonable and substantiated information regarding past
events, current conditions, and forecasts of future economic conditions that are available on the balance
sheet date without incurring undue cost or effort.
(4). Write-down of financial assets
When the Company no longer reasonably expects to recover all or part of the contractual cash flows
of a financial asset, the book balance of that financial asset should be written down directly. Such
write-down constitutes the derecognition of the related financial asset.
Financial assets and financial liabilities are separately presented in the balance sheet without
offsetting. However, the net amount after offsetting is presented in the balance sheet if all of the
following conditions are met:
(1) The Company holds a legal right to offset recognized amounts, and such right is currently
enforceable;
(2) The Company intends to settle on a net basis, or to realize the financial asset and settle the
financial liability simultaneously.
Applicable □ Not Applicable
Categories of Portfolios for Which Bad Debt Provisions Are Made Based on Credit Risk
Characteristics and the Basis for Their Determination
Applicable □ Not Applicable
The method for determining the expected credit losses of notes receivable and the related
accounting treatment adopted by the Company are detailed in Section V, Significant Accounting Policies
and Estimates, item (11)6. Impairment of Financial Instruments.
When there is insufficient evidence to assess expected credit losses at the individual instrument
level at a reasonable cost, the Company refers to historical credit loss experience, taking into
consideration current conditions and judgments about future economic conditions, to classify notes
receivable into several portfolios based on credit risk characteristics and then calculate expected credit
losses based on a portfolio basis. The basis for determining the portfolios is as follows:
Portfolio Name Basis for Determining Portfolios Provision Method
Bank The issuer exhibits a high credit rating, no Refer to historical credit loss experience and take into
Acceptance Bill history of default on bills, a very low credit consideration current conditions and forecasts of
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Portfolio Name Basis for Determining Portfolios Provision Method
Portfolio 1 loss risk, and a strong ability to fulfill its cash future economic conditions to calculate expected
flow obligations under payment contracts. credit losses through default risk exposure and the
expected credit loss rate over the entire duration.
Refer to historical credit loss experience and take into
Bank Acceptors other than those in Bank consideration current conditions and forecasts of
Acceptance Bill Acceptance Bill Portfolio 1 are bank-type future economic conditions to calculate expected
Portfolio 2 financial institutions. credit losses through default risk exposure and the
expected credit loss rate over the entire duration.
Refer to historical credit loss experience and take into
consideration current conditions and forecasts of
Commercial Acceptors are financial companies or future economic conditions to prepare a table
Acceptance Bill non-bank financial institutions or corporate comparing the aging of accounts receivable with the
Portfolio units. expected credit loss rate over the entire duration
(similar to accounts receivable) to calculate expected
credit losses.
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
Applicable □ Not Applicable
Refer to historical credit loss experience and take into consideration current conditions and
forecasts of future economic conditions to prepare a table comparing the aging of accounts receivable
with the expected credit loss rate over the entire duration (similar to accounts receivable) to calculate
expected credit losses.
Criteria for Individual Provision for Bad Debts at the Individual Level
Applicable □ Not Applicable
For notes receivable with significantly different credit risks and portfolio credit risks, the Company
provisions for expected credit losses on an individual-item basis. The Company separately determines
the credit losses on notes receivable where there is sufficient evidence to assess expected credit losses at
the individual instrument level at a reasonable cost.
Applicable □ Not Applicable
Portfolio Categories and Determination Basis for Provision for Bad Debts based on Credit Risk
Characteristics
Applicable □ Not Applicable
For the Company’s methods for determination and accounting treatment of expected credit losses
on accounts receivable, please refer to paragraph (11) 6 - Impairment of Financial Instruments in Section
V - Significant Accounting Policies and Estimates.
When there is insufficient evidence to assess expected credit losses at the individual instrument
level at a reasonable cost, the Company refers to historical credit loss experience, taking into
consideration current conditions and judgments about future economic conditions to classify accounts
receivable into several categories based on credit risk characteristics and then calculate expected credit
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
losses on a portfolio basis. The basis for determining the categories is as follows:
Portfolio Name Basis for Determining Portfolios Provision Method
Refer to historical credit loss experience and take into
Aging Analysis This portfolio utilizes the aging of consideration current conditions and forecasts of
Portfolio receivables as a credit risk characteristic. future economic conditions, to measure the provision
for bad debts.
Related Party Refer to historical credit loss experience and take into
This portfolio utilizes the related party
Portfolio within consideration current conditions and forecasts of
portfolio within the consolidation scope as
the Consolidation future economic conditions, to measure the provision
a credit risk characteristic.
Scope for bad debts.
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
Applicable □ Not Applicable
Below is the table for the comparison between aging and expected credit loss rates of aging
portfolios:
Aging Expected Credit Loss Rates of Accounts Receivable (%)
Within 1 year 5
Over 5 years 100
The aging of accounts receivable is calculated on a first-in, first-out basis.
Criteria for Identifying Individual Provisions for Bad Debts on an Individual-item Basis
Applicable □ Not Applicable
For accounts receivable with significantly different credit risks and portfolio credit risks, the
Company provisions for expected credit losses on an individual-item basis. The Company separately
determines the credit losses on accounts receivable where there is sufficient evidence to assess expected
credit losses at the individual instrument level at a reasonable cost.
Applicable □ Not Applicable
Portfolio Categories and Determination Basis for Provision for Bad Debts based on Credit Risk
Characteristics
Applicable □ Not Applicable
Notes receivable and accounts receivable measured at fair value with changes recorded in other
comprehensive income are presented as Receivables Financing if their maturity is within one year
(including one year) from the initial recognition date; and presented as other debt investment if their
maturity is over one year from the initial recognition date. The relevant accounting policies are detailed
in Section V, Significant Accounting Policies and Estimates, item (11).
For the Company’s methods for determination and accounting treatment of expected credit losses
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
on Receivables Financing, please refer to paragraph (11) 6 - Impairment of Financial Instruments in
Section V - Significant Accounting Policies and Estimates.
When there is insufficient evidence to assess expected credit losses at the individual instrument
level at a reasonable cost, the Company refers to historical credit loss experience, taking into
consideration current conditions and judgments of future economic conditions, to classify Receivables
Financing into several portfolios based on credit risk characteristics and calculate expected credit losses
on a portfolio basis. The basis for determining portfolios is as follows:
Portfolio
Basis for Determining Portfolios Provision Method
Name
The Company uses aging to assess the expected credit
losses of this type of portfolio. This portfolio carries
similar risk characteristics, and aging information can
reflect the ability of this portfolio to pay when
accounts receivable mature. As of the balance sheet
This portfolio utilizes the aging of
Accounts date, the Company refers to historical credit loss
Receivables Financing as a credit risk
Receivable experience and takes into current conditions and
characteristic
forecasts of future economic conditions to a table
comparing the aging of accounts receivable with the
expected credit loss rate over the entire duration
(similar to accounts receivable) to calculate expected
credit losses.
This portfolio consists of notes issued by
Refer to historical credit loss experience and take into
entities with high credit ratings, with no
consideration current conditions and forecasts of
Notes history of note defaults and very low credit
future economic conditions to calculate expected
Receivable loss risks, and with strong ability to fulfill
credit losses through default risk exposure and the
their cash flow obligations under payment
expected credit loss rate over the entire duration.
contracts in the short term
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
Applicable □ Not Applicable
With reference to historical credit loss experience, and taking into account current conditions as
well as forecasts of future economic conditions, an aging schedule of receivables financing and
corresponding expected credit loss rates (in line with those for accounts receivable) is prepared to
calculate the expected credit losses.
Criteria for Identifying Individual Provisions for Bad Debts on an Individual-item Basis
Applicable □ Not Applicable
For Receivables Financing with significantly different credit risks and portfolio credit risks, the
Company provisions for expected credit losses on an individual-item basis. The Company separately
determines the credit losses on Receivables Financing where there is sufficient evidence to assess
expected credit losses at the individual instrument level at a reasonable cost.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Applicable □ Not Applicable
Portfolio Categories and Determination Basis for Provision for Bad Debts based on Credit Risk
Characteristics
Applicable □ Not Applicable
For the Company’s methods for determination and accounting treatment of expected credit losses
on other receivables, please refer to paragraph (11) 6 - Impairment of Financial Instruments in Section V
- Significant Accounting Policies and Estimates.
When there is insufficient evidence to assess expected credit losses at the individual instrument
level at a reasonable cost, the Company refers to historical credit loss experience, taking into
consideration current conditions and judgments of future economic conditions, to classify other
receivables into several portfolios based on credit risk characteristics and calculate expected credit losses
on a portfolio basis. The basis for determining portfolios is as follows:
Portfolio Name Basis for Determining Portfolios Provision Method
Provision is made according to the table for comparison
Aging is used as the credit risk
Aging Portfolio between aging and expected credit loss rate (same as
characteristic
accounts receivable)
Government Accounts Government accounts receivable
Refer to historical credit loss experience and take into
Portfolio of Account
consideration current conditions and forecasts of future
Current between Related parties within the
economic conditions to calculate expected credit losses
Related Parties within consolidation scope of the
through default risk exposure and the expected credit loss
the Consolidation Company
rate over the next 12 months or the entire duration.
Scope
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
Applicable □ Not Applicable
With reference to historical credit loss experience, and taking into account current conditions as
well as forecasts of future economic conditions, an aging schedule of other receivables and
corresponding expected credit loss rates (consistent with those for accounts receivable) is prepared to
calculate the expected credit losses.
Criteria for Identifying Individual Provisions for Bad Debts on an Individual-item Basis
Applicable □ Not Applicable
For other receivables with significantly different credit risks and portfolio credit risks, the Company
provisions for expected credit losses on an individual-item basis. The Company separately determines
the credit losses on other receivables where there is sufficient evidence to assess expected credit losses at
the individual instrument level at a reasonable cost.
Applicable □ Not Applicable
Categories of Inventory, Issuance Valuation Methods, Inventory Counting Systems, and
Amortization Methods for Low-value Consumables and Packaging
Applicable □ Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Inventory refers to finished products or goods held by the Company for sale, work in progress
products, and materials and supplies consumed in the production process or service provision process. It
mainly includes raw materials, work in progress products, inventory goods, and issued goods.
Inventories are initially measured at cost upon acquisition, which includes purchase costs,
processing costs, and other related costs. When inventories are issued, they are valued using the
weighted average method calculated at the end of the month.
The perpetual inventory system is used for inventory counting.
(1). Low-value consumables are amortized using the one-off write-off method;
(2). Packaging is amortized using the one-off write-off method;
(3). Other turnover materials are amortized using the one-off write-off method.
Recognition Criteria and Provision Method for Inventory Write down
Applicable □ Not Applicable
Following a comprehensive inventory inspection at the end of the period, inventory write-downs
are provisioned or adjusted based on the lower of cost or net realizable value of the inventory. For good
inventories directly used for sale, such as finished goods, goods for resale, and materials used for sale,
the net realizable value is determined during normal production and operation by subtracting estimated
selling expenses and related taxes from the estimated selling price of the inventory. For material
inventory requiring processing, the net realizable value is determined during normal production and
operation by subtracting estimated costs at completion, estimated selling expenses, and related taxes
from the estimated selling price of the finished products. For inventory held to fulfill sales contracts or
service contracts, the net realizable value is calculated based on the contract price. If the quantity of
inventory held exceeds the ordered quantity in the sales contract, the net realizable value of the excess
inventory is calculated based on the general selling price.
The provision for inventory write-down is made on an individual-item basis at the end of the period;
however, for inventories with numerous quantities and low unit prices, the provision for inventory
write-down is made according to inventory category. For inventories related to product series produced
and sold in the same region, with similar or identical ultimate uses or purposes, and difficult to measure
separately from other items, the provision for inventory write-down is consolidated.
Once the factors affecting the write-down of inventory value have disappeared, the amount of
write-down should be restored and reversed within the originally provided inventory write-down amount,
with the reversed amount recorded in the profit or loss for the current period.
Portfolio Categories and Determination Basis for the Provision for Inventory Write-Down on a
Portfolio Basis and Determination Basis for Net Realizable Values of Different Categories of
Inventories
□Applicable Not Applicable
Calculation Method and Determination Basis for Net Realizable Values of Various Inventory Age
Portfolios Based on Inventory Age
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
□Applicable Not Applicable
Applicable □ Not Applicable
Method and Criteria for Recognizing Contract Assets
Applicable □ Not Applicable
The Company has the right to receive consideration from customers for goods transferred to them
and recognizes the rights depending on factors beyond the passage of time as contract assets. The
Company separately presents the unconditional (i.e., solely dependent on the passage of time) right to
receive consideration from customers as accounts receivable.
Portfolio Categories and Determination Basis for Provision for Bad Debts based on Credit Risk
Characteristics
Applicable □ Not Applicable
For the Company’s methods for determination and accounting treatment of expected credit loses on
contract assets, please refer to paragraph (11) 6 - Impairment of Financial Instruments in Section V -
Significant Accounting Policies and Estimates.
Aging Calculation Method for Determining Portfolios of Credit Risk Characteristics Based on
Aging Analysis
□Applicable Not Applicable
Criteria for Identifying Individual Provisions for Bad Debts on an Individual-item Basis
□Applicable Not Applicable
□Applicable Not Applicable
Recognition Criteria and Accounting Treatment Method for Non-current Assets or Disposal
Portfolios Held for Sale
Applicable □ Not Applicable
Non-current assets or disposal portfolios meeting both of the following conditions are recognized as
held for sale:
(1) According to the usual practice in similar transactions, the assets or disposal portfolios can be
sold immediately under current conditions;
(2) The sale is highly probable, meaning that the Company has made a decision on a sale plan and
obtained a firm commitment to purchase, with the sale expected to be completed within one year.
A firm commitment to purchase refers to a legally binding purchase agreement between the
Company and another party, which contains significant terms such as the transaction price, time, and
sufficiently severe penalties for breach, minimizing the possibility of significant adjustments or
cancellations.
Depreciation or amortization is not provided for non-current assets or disposal portfolios held for
sale. If their book value exceeds the net amount of fair value less selling expenses, the book value should
be written down to the net amount of fair value less selling expenses, and the written-down amount
should be recognized as impairment loss on assets and recorded in the profit or loss for the current
period, with the provisions for impairment of assets held for sale.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
For non-current assets or disposal portfolios classified as held for sale at the acquisition date, the
lower of the initially measured amount if they are not classified as held for sale and the net amount of
fair value less selling expenses should be compared at the initial measurement.
The above principles apply to all non-current assets, excluding investment properties measured
using the fair value model, biological assets measured at net amount of fair value less selling expenses,
assets arising from employee compensation, deferred income tax assets, financial assets regulated by
financial instrument-related accounting standards, and rights arising from insurance contracts regulated
by insurance contract-related accounting standards.
Recognition Criteria and Presentation Method for Business Termination
□Applicable Not Applicable
Applicable □ Not Applicable
(1) For specific accounting policies for long-term equity investments resulting from enterprise
merger, please refer to (6) - Accounting Treatment Method for Enterprise Merger under the Same
Control and not under the Same Control in Section V - Significant Accounting Policies and Estimates.
(2) Long-term equity investments acquired through other means
For long-term equity investments acquired via cash payment, the initial investment cost is the
actually paid purchase price. It encompasses expenses directly associated with the acquisition of the
long-term equity investments, as well as taxes and other necessary expenditures.
For long-term equity investments acquired through the issuance of equity securities, the initial
investment cost is the fair value of the equity securities issued. Transaction costs incurred in the issuance
or acquisition of equity instruments can be directly attributed to equity transactions and deducted from
equity.
In non-monetary asset exchanges where there exists commercial substance and the fair value of the
assets received or given up can be reliably measured, the initial investment cost of long-term equity
investments received in exchange for non-monetary assets is determined based on the fair value of the
assets given up, unless there is conclusive evidence that the fair value of the assets received is more
reliable. For non-monetary asset exchanges that do not meet the above conditions, the initial investment
cost of the long-term equity investment received is determined based on the book value of the assets
given up and the relevant taxes payable.
For long-term equity investments acquired through debt restructuring, their initial investment cost
is determined based on their fair value.
(1) Cost Method
The Company may adopt the cost method to account for long-term equity investments in the
invested units over which it exercises control, value them based on their initial investment cost, and add
or withdraw investment to adjust the cost of long-term equity investments.
In addition to the cash dividends or profits declared but not yet distributed included in the price or
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
consideration actually paid at the acquisition of investment, the Company recognizes the cash dividends
or profits, as declared by the invested units, as current investment income.
(2) Equity Method
The Company adopts the equity method to account for long-term equity investments in associates
and joint ventures. Equity investments in associates with a portion indirectly held through venture
capital institutions, mutual funds, trust companies, or similar entities, including investment-linked
insurance funds, should be measured at fair value, with changes therein recorded in profit or loss.
If the initial investment cost of a long-term equity investment exceeds the difference between the
Company's share of the fair value of identifiable net assets of the invested unit at the time of investment,
no adjustment is made to the initial investment cost of the long-term equity investment. If the initial
investment cost is less than the difference mentioned above, it is recorded in the profit or loss for the
current period.
After acquiring a long-term equity investment, the Company separately recognizes investment
income and other comprehensive income based on its share of the net profit and other comprehensive
income realized by the invested unit, and adjusts the book value of the long-term equity investment. The
Company also reduces the book value of long-term equity investment correspondingly based on its share
of the profits or cash dividends declared by the invested unit. In case of any other changes in the owners’
equity, excluding net profit, other comprehensive income, and profit distribution of the invested unit,
adjustments should be made to the book value of the long-term equity investment and recorded in the
owners’ equity.
When recognizing its share of the net profit or loss in the invested unit, the Company adjusts and
then recognizes the net profits of the invested unit based on the fair value of various identifiable assets of
the invested unit at the time of investment. The profit or loss from unrealized internal transactions
between the Company and associates or joint ventures are offset based on the Company's proportionate
share, and investment income is recognized thereafter.
When recognizing the invested unit’s losses to be borne by it, the Company takes the following
steps: (1) Offset the book value of long-term equity investments; (2) Continue to recognize investment
losses at an amount limited to the book value of the long-term equity that materially represents the net
investment in the invested unit and offset the book value of long-term receivables, etc., if the book value
of the long-term investments are insufficient to offset. (3) After the above treatments, if the Company
still bears additional obligations according to the investment contract or agreement, it should recognize
the estimated liabilities according to the estimated obligations and record them in the investment loss for
the current period.
If the invested unit realizes profits in subsequent periods, the Company, after deducting the
unrecognized loss-sharing amount, proceeds to the aforementioned steps in reverse order: Write down
the book balance of recognized estimated liabilities, restore the book value of long-term equity and
long-term equity investment that materially represent investment in the invested unit, and then restore
and recognize investment income.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1). Conversion from Fair Value Measurement to Equity Method for Accounting
For equity investments held by the Company without control, joint control, or significant influence
over the invested unit, recognized using financial instruments and accounted for using measurement
standards, which, due to additional investments or other reasons, are able to exert significant influence
over the invested unit or exercise joint control without constituting control, the initial investment cost for
equity investments accounted for by the equity method is determined by adding the fair value of the
originally held equity investments determined in accordance with the Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments to the additional
investment cost.
If the initial investment cost accounted for by the equity method is less than the difference between
the newly calculated shares of fair value of identifiable net assets of the invested unit on the date of
additional investment, adjustments are made to the book value of long-term equity investments and
recorded in the non-operating income for the current period.
(2). Measurement at Fair Value or Conversion of Equity Method to Cost Method for Accounting
For equity investments previously held by the Company without control, joint control, or
significant influence over the invested unit, recognized using financial instruments and accounted for
using measurement standards, or for long-term equity investments previously held in associates or joint
ventures, which, due to additional investments or other reasons, are able to exercise control over
invested unit not under the same control, the sum of the book value of equity investments previously
held and the cost of additional investments is treated as the initial investment cost accounted for by the
cost method in the preparation of individual financial statements.
Any other comprehensive income recognized in equity investments held prior to the acquisition
date and accounted for using the equity method should be accounted for using the same basis as the
invested unit's direct disposal of related assets or liabilities when disposing of the investment.
For equity investments held prior to the acquisition date and accounted for in accordance with the
relevant provisions specified in the Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments, cumulative fair value changes previously recorded in other
comprehensive income are transferred to the profit or loss for the current period when converted to the
cost method.
(3). Conversion of Equity Method Accounting to Fair Value Measurement
If the Company loses joint control or significant influence over an invested unit due to the disposal
of part of its equity investments or other reasons, the remaining equity after disposal is accounted for in
accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments. The difference between the fair value and the book value on the
day of losing joint control or significant influence is recorded in the profit or loss for the current period.
Any other comprehensive income recognized and accounted for by equity method for original
equity investments should be accounted for using the same basis as the invested unit's direct disposal of
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
related assets or liabilities when terminating the adoption of the equity method for accounting.
(4). Conversion of Cost Method to Equity Method
If the Company loses control over an invested unit due to the disposal of part of its equity
investments or other reasons, and the remaining equity after disposal is able to exercise joint control or
exert significant influence over the invested unit, the remaining equity should be accounted for using the
equity method, and should be adjusted as if it had been accounted for using the equity method from the
acquisition date.
(5). Conversion of Cost Method to Fair Value Measurement
If the Company loses control over an invested unit due to the disposal of part of its equity
investments or other reasons, and the remaining equity after disposal cannot exercise joint control or
exert significant influence over the invested unit, the remaining equity should be accounted for in
accordance with the relevant provisions specified in the Accounting Standards for Business Enterprises
No. 22 - Recognition and Measurement of Financial Instruments. The difference between the fair value
and the book value on the day of losing control is recorded in the profit or loss for the current period.
The difference between the book value and the actually received price for the disposal of long-term
equity investments should be recorded in the profit or loss for the current period. For long-term equity
investments accounted for using the equity method, the same basis as the invested unit's direct disposal
of related assets or liabilities should be used when the investment is disposed of, and the portion
originally recorded in other comprehensive income should be accounted for proportionally.
When the terms, conditions and economic impact of transactions involving the disposal of equity
investments in subsidiaries meet one or more of the following circumstances, multiple transaction
matters should be accounted for as a package deal:
(1). These transactions are concluded simultaneously or taking into account their mutual impacts;
(2). These transactions collectively achieve a complete business outcome;
(3). The occurrence of one transaction depends on the occurrence of at least one other transaction;
(4). A transaction is uneconomical when considered alone, but becomes economical when
considered together with other transactions.
If the control over a subsidiary is lost due to the disposal of part of the equity investment or other
reasons and the transaction does not constitute a package deal, individual financial statements and
consolidated financial statements should be distinguished and relevant accounting treatment should be
applied:
(1) In individual financial statements, the difference between the book value and the actually
received price for the disposed equity should be recorded in the profit or loss for the current period. If
the remaining equity after disposal can exercise joint control or exert significant influence over the
invested unit, it should be accounted for using the equity method, and should be adjusted as if it had
been accounted for using the equity method from the acquisition date; if the remaining equity after
disposal cannot exercise joint control or exert significant influence over the invested unit, it should be
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
accounted for in accordance with the relevant provisions specified in the Accounting Standards for
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, and the
difference between the fair value and the book value on the day of losing control should be recorded in
the profit or loss for the current period.
(2) In consolidated financial statements, for transactions before the loss of control over a subsidiary,
the difference between the disposal price and the corresponding share of net assets of the subsidiary
calculated continuously from the acquisition date or merger date, should be offset by capital reserve
(share premium). If capital reserve is insufficient to offset, the retained earnings should be adjusted.
After losing control over a subsidiary, the remaining equity should be remeasured at fair value on the
date of loss of control. The sum of the price received for the disposal of equity and the fair value of the
remaining equity, minus the proportionate share of net assets of the original subsidiary calculated from
the acquisition date at the original ownership proportion, should be recorded in the investment income
for the period of loss of control, and offset by goodwill. Other comprehensive income related to the
equity investments in the original subsidiary should be transferred to current investment income upon
loss of control.
Transactions involving the disposal of equity investments in subsidiaries until control is lost, which
are part of a package deal, are accounted for as a single transaction for the disposal of equity investments
in subsidiaries and losing control over subsidiaries, with separate accounting treatment for individual
financial statements and consolidated financial statements.
(1) In individual financial statements, the difference between each disposal price and the book value
of the long-term equity investments corresponding to the disposed equity before the loss of control is
recognized as other comprehensive income and transferred to the profit or loss for the current period
when control is lost.
(2) In consolidated financial statements, the difference between each disposal value and the share of
the net assets of the subsidiary corresponding to the disposed investment is recognized as other
comprehensive income before the loss of control and transferred to the profit or loss for the current
period when control is lost.
If the Company collectively controls an arrangement with other parties in accordance with relevant
agreements and decisions that significantly affect the returns from the arrangement require unanimous
consent of the parties sharing control, it is considered that the Company jointly controls the arrangement
with other parties, and the arrangement falls under the category of joint arrangements.
If a joint arrangement is reached through a separate entity, the Company treats the separate entity as
a joint venture and applies the equity method for accounting based on relevant agreements when
determining its right to the net assets of that separate entity. If it is determined based on relevant
agreements that the Company does not have the right to the net assets of that separate entity, the separate
entity is treated as a joint operation, and the Company recognizes items related to its interest in joint
operations and accounts for them in accordance with relevant Accounting Standards for Business
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Enterprises.
Significant influence refers to the power of the investing party to participate in the decision-making
of the financial and operating policies of the invested unit, without control or joint control with other
parties over the formulation of these policies. The Company determines significant influence on the
invested unit based on one or more of the following circumstances and takes into consideration all facts
and circumstances: (1) Having representatives to the board of directors or similar governing bodies of
the invested unit; (2) Participating in the process of formulating the financial and operating policies of
the invested unit; (3) Engaging in significant transactions with the invested unit; (4) Deploying
management personnel to the invested unit; (5) Providing critical technical information to the invested
unit.
Not Applicable
(1). Recognition Conditions
Applicable □ Not Applicable
Fixed assets refer to tangible assets held for the purpose of producing goods, providing services,
renting, or managing operations, and whose useful life exceeds one accounting year. Fixed assets are
recognized when both of the following conditions are met:
(1) Economic benefits related to the fixed assets are likely to flow into the enterprise;
(2) The cost of the fixed assets can be reliably measured.
Fixed assets of the company are initially measured based on cost.
(1). The cost of externally acquired fixed assets includes the purchase price, import tariffs, and
other taxes and fees related to the asset, as well as other expenses directly attributable to the asset before
it reaches the intended usable state.
(2). The cost of self-constructed fixed assets consists of necessary expenses incurred before the
asset reaches the intended usable state.
(3). Fixed assets contributed by investors are booked at the entry value agreed upon in the
investment contract or agreement, but if the value agreed upon in the contract or agreement is not fair, it
is booked fair value.
(4). If the purchase price of fixed assets exceeds the normal credit terms with deferred payment
and has a substantive financing nature, the cost of the fixed assets is determined based on the present
value of the purchase price. The difference between the actually paid price and the present value of the
purchase price is recorded in the current profit or loss during the credit period.
(1). Depreciation of Fixed Assets
Depreciation of fixed assets is provided over their estimated useful lives after deducting the
estimated residual value from their entry value. For fixed assets for which impairment provisions have
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
been made, depreciation is calculated in future periods based on the remaining book value and the
estimated remaining useful life after deducting the impairment provisions. Fixed assets that have been
fully depreciated and are still in use are not subject to further depreciation.
For fixed assets arising from expenditure funded by special reserves, the cost of these fixed assets is
offset against the special reserves and an equivalent amount of accumulated depreciation is recognized,
with no depreciation being provided in subsequent periods.
The Company determines the useful life and estimated residual value of fixed assets based on their
nature and usage. At the end of each year, the useful life, estimated residual value, and depreciation
method of fixed assets are reviewed, and adjustments are made if there are differences from the original
estimates.
(2). Subsequent Expenditures on Fixed Assets
Subsequent expenditures related to fixed assets are recorded in the cost of fixed assets if they
meet the recognition conditions for fixed assets; or recorded in the profit or loss for the current
period if they do not meet the recognition conditions for fixed assets.
(3). Disposal of Fixed Assets
When fixed assets are disposed of or when it is expected that no economic benefits will arise from
their use or disposal, such fixed assets are derecognized. The disposal proceeds from the sale, transfer,
scrapping or damage of fixed assets, after the deduction of their book value and relevant taxes, are
recorded in the profit or loss for the current period.
(2). Depreciation Method
Applicable □ Not Applicable
Residual Value Annual Depreciation
Category Depreciation Method Depreciation Period
Rate (%) Rate (%)
Housing and Structures
Housing and
Straight-Line Method 20-40 years 5.00 2.375-9.50
Structures
Architectures 10-20 years
Machinery and
Straight-Line Method 5-20 years 5.00 4.75-19.00
Equipment
Transportation
Straight-Line Method 5 years 5.00 19.00
Tools
Office and Other
Straight-Line Method 5 years 5.00 19.00
Equipment
Applicable □ Not Applicable
Construction in progress, self-constructed by the Company, is valued at actual cost, which
comprises necessary expenses incurred until the asset reaches the intended usable state, including cost of
materials, labor, relevant taxes paid, borrowing costs to be capitalized, and indirect costs to be allocated.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
All expenditures incurred before the intended usable state is achieved for construction in progress
projects are recognized as the entry value of fixed assets. When construction in progress has reached the
intended usable state but final settlement has not been completed, it is capitalized into fixed assets based
on the estimated value determined by project budget, construction cost, or actual project cost and
depreciation is then provided based on the Company's fixed asset depreciation policy. After the final
settlement, the estimated value is adjusted according to the actual cost, but previously provided
depreciation is not adjusted.
The impairment testing method and the provision method for impairment of construction in
progress are detailed in Section 27: Impairment of Long-term Assets.
Applicable □ Not Applicable
Borrowing costs incurred by the Company that are directly attributable to the acquisition or
construction of qualifying assets for capitalization are capitalized and recorded in the cost of related
assets; other borrowing costs are recognized as expenses based on their amounts when incurred.
Qualifying assets for capitalization refer to assets such as fixed assets, investment properties and
inventories that require a substantial period of time for acquisition or construction activities to reach
their intended usable or saleable status.
Borrowing costs are eligible for capitalization when all of the following conditions are met:
(1) Expenditure for the asset has been incurred, including payments in cash, the transfer of
non-cash assets, or the assumption of interest-bearing liabilities for acquisition, construction or
production of qualifying assets for capitalization;
(2) Borrowing costs have been incurred;
(3) The necessary acquisition, construction, or production activities to bring the asset to its intended
usable or saleable state have commenced.
The capitalization period refers to the duration from the commencement of capitalizing borrowing
costs to the cessation of such capitalization, excluding periods when capitalization of borrowing costs is
suspended.
Capitalization of borrowing costs halts when the qualifying assets for capitalization reaches the
intended usable or saleable status.
When parts of a qualifying asset for capitalization are completed and can be used separately,
capitalization of borrowing costs for those parts halts.
For assets where parts are completed but cannot be used or sold until the entire asset is completed,
capitalization of borrowing costs halts when the entire asset is completed.
If there is an abnormal interruption during the acquisition, construction or production of a
qualifying asset for capitalization and the interruption lasts continuously for more than three months,
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
capitalization of borrowing costs is suspended. Capitalization will continue if the interruption is
necessary for the asset to reach its intended usable or saleable state. Borrowing costs incurred during the
interruption period are recognized as profit or loss for the current period and their capitalization will
continue until the resumption of asset acquisition, construction or production activities.
Interest costs on specific borrowings (net of interest income earned from the deposit of the
borrowed funds not yet used or from temporary investments) and related auxiliary costs are capitalized
until the qualifying asset for capitalization under acquisition, construction or production reaches its
intended usable or saleable state.
The amount of interest from general borrowings to be capitalized is calculated by multiplying the
weighted average of accumulated expenditure on the asset over the specific borrowings by the
capitalization rate of the general borrowings. The capitalization rate is determined based on the weighted
average interest rate of general borrowings.
If borrowing carries a discount or premium, the amount of discount or premium to be amortized
during each accounting period is determined using the effective interest method, with adjustments to the
interest amount for each period.
□Applicable Not Applicable
□Applicable Not Applicable
(1).Useful life and Its Determination Basis, Estimation, Amortization Method, or Review
Procedures
Applicable □ Not Applicable
Intangible assets refer to identifiable non-monetary assets without physical form controlled or
owned by the Company, including land use rights, software, and licenses for patent usage.
An intangible asset must meet the above definition of an intangible asset and also satisfy all of the
following recognition criteria:
(1). It is probable that the economic benefits associated with the asset will flow to the enterprise;
(2) The cost of the asset can be measured reliably.
The cost of externally acquired intangible assets includes the purchase price, related taxes, and
other expenses directly attributable to bringing the asset to its intended use. If the purchase price of
intangible assets exceeds the normal credit terms with deferred payment and has a substantive financing
nature, the cost of intangible assets is determined based on the present value of the purchase price.
The cost of internally developed intangible assets includes materials consumed, labor costs,
registration fees, amortization of other patents and licenses used during development, interest expenses
for meeting the capitalization conditions, and other direct expenses incurred before the intangible asset
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
reaches its intended use.
The company analyzes and assesses the useful life of intangible assets at the time of acquisition,
and classifies them as having either finite or indefinite useful lives.
(1) Intangible Assets with Finite Useful Lives
For intangible assets with finite useful lives, straight-line amortization is applied over the period
during which the asset is expected to generate economic benefits. The estimated useful lives of such
assets and their basis are as follows:
Item Estimated Useful Life Basis
Land Use Rights 50 years Land Use Certificate
Software 10 years Contractual Agreements and Tax Law Provisions
Licenses for Patent Usage 4.75-20 years Benefit Period
At the end of each period, the useful lives of and depreciation methods for intangible assets with
finite useful lives are reviewed, and adjusted when necessary.
(2) Intangible Assets with Indefinite Useful Lives
Intangible assets for which the period of economic benefit cannot be reliably predicted are
considered to have indefinite useful lives.
The Company does not have any intangible assets with indefinite useful lives.
For impairment testing methods and impairment provision methods for intangible assets, refer to
(27) - Impairment of Long-term Assets in Section V - Significant Accounting Policies and Estimates.
(2).Aggregation Scope of of Research and Development Expenditures and Relevant Accounting
Treatment Methods
Applicable □ Not Applicable
research and development projects
Research Phase: A phase involving innovative, planned investigations and research activities to
acquire and comprehend new scientific or technological knowledge.
Development Phase: A phase in which research findings or other knowledge are applied to a
specific plan or design before commercial production or use, leading to the creation of new or
substantially improved materials, devices, products, etc.
Expenditures incurred during the research phase of internal research and development projects are
recorded in the profit or loss for current period when they occur.
Expenditures incurred during the development phase of internal research and development projects
are recognized as intangible assets when they meet all of the following conditions:
(1) Completion of the intangible asset to enable its use or sale is technically feasible;
(2) There is an intention to complete the intangible asset and use or sell it;
(3) The intangible asset generates economic benefits, either by demonstrating the presence of a
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
market for products produced using the asset or by demonstrating the presence of a market for the asset
itself, or by demonstrating its usefulness if it will be used internally;
(4) There are adequate technical, financial, and other resources to complete the development of the
intangible asset and the Company is able to use or sell it;
(5) Expenditures attributable to the development stage of the intangible asset can be reliably
measured.
Expenditures incurred during the development phase that do not meet the above conditions are
recorded in the profit or loss for the current period when they occur. Development expenditures
previously recorded in profit or loss are re-recognized as assets in subsequent periods. Capitalized
expenditures during the development phase are presented on the balance sheet as development
expenditures and are reclassified as intangible assets from the date the project reaches its intended use.
Applicable □ Not Applicable
At each balance sheet date, the Company reviews its long-term equity investments, fixed assets,
construction in progress, and intangible assets with definite useful lives for any indication of possible
impairment. If any such indication exists, the recoverable amount of the individual asset is estimated.
Where it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of
the asset group to which the asset belongs is determined instead.
The estimation of the recoverable amount of an asset is determined by the net amount of its fair
value less disposal costs or its present value of expected future cash flows, whichever is higher.
The measurement results of the recoverable amount indicates that if a long-term asset’s recoverable
amount is less than its book value, the book value is written down to the recoverable amount, and the
written-down amount is recognized as an impairment loss and recorded in the profit or loss for the
current period, with the provision for asset impairment being provided accordingly. Once an asset
impairment loss is recognized, it cannot be reversed in subsequent accounting periods.
After recognition of asset impairment losses, the expenses on depreciation or amortization of
impaired assets are adjusted accordingly in future periods to systematically allocate the adjusted book
value of the assets (net of estimated net residual value) over the remaining useful life.
For goodwill arising from enterprise merger and intangible assets with indefinite useful lives,
impairment tests are conducted annually regardless of whether there are indicators of impairment.
When conducting impairment tests on goodwill, the book value of goodwill is allocated to the asset
portfolio or asset portfolios that are expected to benefit from the synergy effects of the enterprise merger.
When conducting impairment tests on asset portfolio or asset portfolios containing goodwill, if there are
indicators of impairment related to the asset portfolio or asset portfolios containing goodwill,
impairment tests are first conducted on asset portfolio or asset portfolios without goodwill, and then the
recoverable amount is calculated, and compared with the book value to recognize the corresponding
impairment loss. Subsequently, impairment tests are conducted on asset portfolio or asset portfolios
containing goodwill, and the book value (including the book value portion of allocated goodwill) of the
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
related asset portfolio or asset portfolios is compared with their recoverable amount. If the recoverable
amount of the related asset portfolio or asset portfolios is lower than their book value, impairment losses
on goodwill are recognized.
Applicable □ Not Applicable
Long-term deferred expenses refer to expenses that have been incurred by the Company but should
be allocated over a period exceeding one year from the current period and subsequent periods.
Long-term deferred expenses are amortized on a straight-line basis over the benefit period.
Category Amortization Period (Years) Remarks
Site Lease Fees 20 Lease Term
Housing Subsidies 9 Service Period
Employee Rewards 5 Service Period
Production Materials 1.5-5 Usage Period
Leasehold Improvements 5 Usage Period
Applicable □ Not Applicable
The Company recognizes as contract liabilities the obligation to transfer goods to customers for the
consideration received or receivable from customers.
(1). Method for Accounting Treatment of Short-term Compensation
Applicable □ Not Applicable
Short-term compensation refers to the employee compensation that the Company is obligated to
pay within twelve months after the end of the annual reporting period in which the employees provide
relevant services, excluding post-employment benefits and termination benefits. During the accounting
period in which employees provide services, short-term compensation payable is recognized as a liability,
and is recorded in related asset costs and expenses based on the benefits derived from the services
provided by employees.
(2). Method for Accounting Treatment of Post-Employment Benefits
Applicable □ Not Applicable
Post-employment benefits refer to various forms of compensation and benefits provided by the
Company to employees upon retirement or termination of employment with the Company for attaining
the services provided by employees, excluding short-term compensation and termination benefits.
All of the Company's post-employment benefit plans are defined contribution plans.
The Company's defined contribution plan for post-employment benefits primarily includes
participation in basic social pension insurance, unemployment insurance, etc. organized and
implemented by local labor and social security institutions. During the accounting period in which
employees provide services to the Company, the amount payable calculated based on the defined
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
contribution plan is recognized as a liability, and is recorded in the profit or loss for the current period or
related asset costs.
After making regular payments for the above items in accordance with national standards, the
Company no longer has any further payment obligations.
(3). Method for Accounting Treatment of Termination Benefits
Applicable □ Not Applicable
Termination benefits refer to compensations provided by the Company to employees due to
termination of their employment contracts before their expiration or as incentives for voluntary layoffs.
These are recognized as liabilities arising from compensations for terminating employment contracts
when the Company cannot unilaterally withdraw termination plans or layoff proposals, and when costs
related to restructuring involving payments for termination benefits are confirmed, whichever occurs
earlier, and are simultaneously recorded in the profit or loss for the current period.
(4). Method for Accounting Treatment of Other Long-term Employee Benefits
Applicable □ Not Applicable
Other long-term employee benefits refer to all employee benefits other than short-term
compensation, post-employment benefits, and termination benefits.
For other long-term employee benefits that meet the conditions of the defined contribution plan, the
amount payable is recognized as a liability and recorded in the profit or loss for the current period or
related asset costs during the accounting period in which employees provide services to the Company.
Applicable □ Not Applicable
A provision is recognized when the obligation related to a contingency constitutes a present
obligation of the Company; it is probable that an outflow of economic benefits will be required to settle
the obligation, and the amount of the obligation can be reliably measured.
The estimated liabilities of the Company are initially measured at the best estimate of the
expenditure required to fulfill the related present obligation.
When determining the best estimate, the Company takes into account comprehensively factors such
as risks, uncertainties, and the time value of money related to the contingent liabilities. For contingent
liabilities with significant impact on the time value of money, the best estimate should be determined by
discounting the relevant future cash outflows.
The best estimate is handled as follows:
In cases where there is a continuous range (or interval) of expenditures and each possible outcome
within the range occurs with equal probability, the best estimate should be determined based on the
average of the upper and lower limits of the range.
In cases where there is no continuous range (or interval) of expenditures, or although there is a
continuous range, the probabilities of occurrence of various outcomes within the range are not equal, the
best estimate should be determined based on the most likely amount if the contingent matter relates to a
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
single item and should be calculated based on various possible outcomes and their probabilities if the
contingent liability involves multiple items.
If all or part of the expenditures required to settle the estimated liabilities are expected to be
compensated by a third party, the compensation amount should be separately recognized as an asset
when it is virtually certain to be received, with the recognized compensation amount not exceeding the
book value of the estimated liabilities.
Applicable □ Not Applicable
The share-based payment by the Company is categorized into share-based payment settled by
equity and share-based payment settled by cash.
For granted equity instruments such as options with active markets, their fair value is determined
based on quotes from such active markets. For granted equity instruments such as options without active
markets, their fair value is determined using option pricing model or other methods. The following
factors are considered in the selected option pricing model: (1) exercise price of the option; (2) term of
the option; (3) current price of the underlying shares; (4) expected volatility of share prices; (5) expected
dividends of shares; (6) risk-free interest rate during the term of the option.
When determining the fair value on the grant date of equity instruments, the Company takes into
account the impact of market conditions and non-market conditions in the exercisable conditions for
exercising as stipulated in the share-based compensation agreement. If non-exercisable conditions exist,
as long as employees or other parties meet all non-market conditions among all exercisable conditions
(such as service periods), the corresponding cost of services received is recognized.
On each balance sheet date during the vesting period, the best estimate is made based on the latest
changes in the number of eligible employees for exercise and other subsequent information, with
adjustment to the estimated quantity of exercisable equity instruments. On the exercise date, the final
estimated quantity of exercisable equity instruments matches the actual quantity of such instruments.
(1) Accounting Treatment for Equity-Settled and Cash-Settled Share-Based Payments
For equity-settled share-based payments, the fair value of equity instruments granted to employees
is used for measurement. If the equity instruments are exercisable immediately upon grant, their fair
value on the grant date is recognized in relevant costs or expenses, with a corresponding increase in
capital reserve. When equity-settled share-based payments are used in exchange for services from other
parties, and the fair value of such services can be reliably measured, the fair value of the services on the
acquisition date is recognized in relevant costs or expenses, with a corresponding increase in capital
reserve. If the fair value of the services cannot be reliably measured but the fair value of the equity
instruments can be, the fair value of the equity instruments on the service acquisition date is used instead.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
For equity instruments exercisable only upon completion of the vesting period or achievement of
performance conditions, the best estimate of the number of equity instruments expected to vest is made
at each balance sheet date during the vesting period. Based on the fair value of the equity instruments at
the grant date, the value of the services received during the period is recognized in relevant costs or
expenses and capital reserve. No adjustment is made to the total recognized cost or equity after the
vesting date. For share-based payments to other parties, if the fair value of the services can be reliably
measured, the fair value of the services on the acquisition date is recognized in relevant costs or
expenses, with a corresponding increase in capital reserve. If the fair value of the services cannot be
reliably measured but the fair value of the equity instruments can be, the fair value of the equity
instruments on the service acquisition date is used instead.
For cash-settled share-based payments, the liability is measured at the fair value of the obligation
undertaken by the Company, which is determined based on shares or other equity instruments. If the
instruments are exercisable immediately upon grant, the fair value of the liability on the grant date is
recognized in relevant costs or expenses, with a corresponding increase in liabilities. For instruments
that become exercisable only after completing the vesting period or meeting performance conditions, the
fair value of the liability is estimated at each balance sheet date during the vesting period based on the
best estimate of vesting, and the value of the services received during the period is recognized in costs or
expenses and corresponding liabilities. Prior to settlement of the liability, the fair value of the liability is
remeasured at each balance sheet date and on the settlement date, and any changes in fair value are
recognized in profit or loss for the period.
(2) Accounting Treatment for Modifications to Terms and Conditions of Share-Based Payments
For unfavorable modifications, the Company treats the change as if it had never occurred and
continues to account for the services received as originally agreed.
For favorable modifications, the Company applies the following treatment: If the modification
increases the fair value of the equity instruments granted, the Company recognizes an increase in the
value of services received accordingly. If the modification occurs during the vesting period, the fair
value of the services received from the date of modification to the revised vesting date shall include both
the amount based on the original grant-date fair value of the equity instruments for the remaining
original vesting period, and the increase in fair value resulting from the modification. If the modification
occurs after the vesting date, the increase in fair value shall be recognized immediately. If the modified
share-based payment arrangement requires the employee to complete a longer service period before
vesting, the Company shall recognize the increase in fair value over the revised vesting period.
If the modification increases the number of equity instruments granted, the Company shall
recognize the fair value of the additional equity instruments as an increase in the value of services
received. If the modification occurs during the vesting period, the fair value of the services received
from the modification date to the vesting date of the additional equity instruments shall include both the
original fair value based on the grant date for the remaining vesting period, and the increase in fair value
from the additional instruments.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
If the Company modifies the vesting conditions in a manner favorable to the employee—such as
shortening the vesting period or changing or cancelling performance conditions (excluding market
conditions)—the revised vesting conditions shall be taken into account when assessing the vesting.
If the Company modifies a cash-settled share-based payment arrangement so that it becomes an
equity-settled arrangement, the Company measures the equity-settled share-based payment at the fair
value of the equity instruments granted on the modification date (regardless of whether the modification
occurs during or after the vesting period), and recognizes the services received up to that date in capital
reserves. At the same time, the liability previously recognized for the cash-settled arrangement is
derecognized, and any difference is recognized in profit or loss for the period. If the modification results
in an extension or shortening of the vesting period, the Company accounts for the change based on the
revised vesting period.
(3) Accounting Treatment for Cancellation of Share-Based Payments
If the granted equity instruments are cancelled during the vesting period, the Company accounts for
the cancellation as an accelerated vesting. The amount that would have been recognized over the
remaining vesting period is recognized immediately in profit or loss for the current period, with a
corresponding increase in capital reserves. If an employee or other party chooses not to meet a
non-vesting condition during the vesting period, the Company treats it as a cancellation of the granted
equity instruments.
If an employee voluntarily withdraws from the equity incentive plan, the Company accounts for it
as an accelerated vesting, recognizing immediately in profit or loss the amount that would have been
recognized over the remaining vesting period, with a corresponding increase in capital reserves.
□Applicable Not Applicable
(1). Accounting Policies for Disclosure of Revenue Recognition and Measurement by Business
Type
Applicable □ Not Applicable
The Company's revenue mainly arises from the following business types: sales of food flavor and
texture optimization products, animal nutrition amino acids, human medical amino acids, and related
by-products.
The Company recognizes revenue at the transaction price allocated to that performance obligation
when it fulfills its obligations under contracts, i.e., when customers obtains the control over the relevant
goods or services.
Performance obligations refer to commitment by the Company in the contract to transfer clearly
identifiable goods or services to the customer..
Obtaining control over relevant goods refers to the ability to direct the use of the goods and receive
almost all of the economic benefits from them.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
The Company evaluates a contract at the commencement date to identify individual performance
obligations and determine whether those obligations are to be fulfilled over a period or at a specific
moment. If one of the following conditions is met, the obligations are considered to be fulfilled over a
period, and revenue is recognized by the Company over the defined period based on the progression of
fulfillment: (1) the customer simultaneously receives and consumes the benefits derived from the
Company's performance; (2) the customer can exercise control over the goods under construction during
the Company's performance; (3) the goods produced by the Company during performance serve an
indispensable purpose and the Company has the right to receive payment for the cumulative
performance up to now over the entire contract period. Otherwise, the Company recognize revenue at
the moment when the customer obtains control of the relevant goods or services.
For performance obligations fulfilled over a period, the Company determines the appropriate
progress using the output method/input method based on the nature of the goods and services. The
output method determines the performance progress based on the value of the goods transferred to the
customer (the input method determines the performance progress based on the Company’s inputs to
fulfill its performance obligations). When the performance progress cannot be reasonably determined,
and the costs already incurred is likely to be reimbursed, revenue is recognized based on the amount of
costs incurred until the performance progress can be reasonably determined.
The Company's business of selling products such as food flavor and texture optimization products,
animal nutrition amino acids and human medical amino acids typically only involves the obligation to
transfer goods. The revenue recognition policy primarily makes a distinction between domestic and
export customer classifications. The specific methods for revenue recognition are as follows:
Domestic Sales: According to the contracts or orders signed with the customer, revenue realization
is recognized by the Company at the moment when goods are delivered to the customer, and the
customer takes control over the goods upon receipt.
Export Sales: According to the contracts or orders signed with the customer, sales revenue
realization is recognized by the Company on the export date specified on the custom declaration, upon
the completion of loading goods onto the vessel, the completion of customs clearance procedures, and
the transfer of control over the goods.
(1) Contracts with Sales Return Provisions
For sales contracts with sales return provisions, the Company recognizes revenue when the
customer obtains control of the related goods based on the amount of consideration expected to be
received from transferring goods to the customer (excluding the amount expected to be refunded due to
sales returns), and recognizes liabilities based on the amount expected to be refunded due to sales returns.
Additionally, the balance after deducting the estimated cost (including the depreciation in the value of
the returned goods) of returning the goods from the book value of the goods expected to be returned at
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
the time of transfer is recognized as an asset. Subsequently, the net amount after deducting the cost of
the asset from the book value of the goods at the time of transfer is carried forward as cost.
(2) Contracts with Quality Assurance Provisions
For sales contracts with quality assurance provisions, if the quality assurance provides a separate
service beyond assuring that the goods or services sold meet established standards, it constitutes a
separate performance obligation. Otherwise, the Company accounts for the quality assurance
responsibility according to the Accounting Standards for Business Enterprises No. 13 - Contingencies.
(3) Contracts with Customer Options for Additional Purchases
Customer options for additional purchases include sales incentive measures, additional discounts
for future goods or services, etc. For options for additional purchases that provide the customer with
significant rights, the Company treats them as separate performance obligations and recognizes relevant
revenues when the customer exercises the purchase options to obtain control over relevant goods or
services in the future or when the options expire. When the standalone selling price of customer options
for additional purchases cannot be directly observed, the Company estimates it by considering all
relevant information, including differences in discounts obtained from exercising and not exercising the
options and the likelihood of exercising the options.
(4) Principal vs. Agent
The Company determines whether it acts as a principal or an agent based on whether it has control
over the goods or services before transferring them to the customer. If the company can exercise control
over the goods or services before transferring them to the customer, it acts as a principal and recognizes
revenue based on the total consideration received or receivable. Otherwise, the company acts as an agent
and recognizes revenue based on the amount of commission or handling fees expected to be entitled to
receive. Such amount is determined by deducting the amounts payable to other related parties from the
total consideration received or receivable.
(2). Different Revenue Recognition and Measurement Methods for Similar Businesses with
Different Operating Models
□Applicable Not Applicable
Applicable □ Not Applicable
Costs incurred by the Company to perform contracts are recognized as an asset if they meet all of
the following conditions and are not within the scope of other Accounting Standards for Business
Enterprises excluding revenue standards:
(1) The cost is directly related to a contract either currently or expected to be obtained, including
direct labor, direct materials, manufacturing expenses (or similar expenses), costs explicitly borne by the
customer, and other costs incurred solely due to the contract;
(2) The cost increases the resources available for the Company to fulfill its performance
obligations;
(3) The cost is expected to be recoverable.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
This asset is presented under inventories or other non-current assets based on whether the
amortization period exceeds one normal operating cycle at the time of initial recognition.
Incremental costs incurred by the Company to obtain contracts and expected to be recoverable are
recognized as an asset. Incremental costs refer to costs that would not have been incurred if the contract
had not been obtained, such as sales commissions. For amortization periods not exceeding one year, they
are recorded in the profit or loss for the current period when incurred.
Assets related to contract costs mentioned above are amortized based on the same basis as the
revenue recognition for goods or services related to the assets, either at the time of performance
obligation fulfillment or based on the progress of performance obligation fulfillment, and recorded in the
profit or loss for the current period.
If the book value of the aforementioned assets related to contract costs exceeds the difference
between the residual consideration expected to be obtained by the Company from the transfer of goods
related to these assets and the estimated costs to be incurred for the transfer, the excess should be set
aside impairment provision and recognized as an impairment loss.
After the impairment provision, if there are changes in impairment factors in previous periods,
resulting in the above difference exceeding the book value of the assets, the provision for impairment
loss previously accrued shall be reversed, and recorded in the profit or loss for the current period.
However, the book value of the assets after reversal should not exceed that on the reversal date under the
assumption of no accrual of impairment provision.
Applicable □ Not Applicable
Government grants refer to monetary assets and non-monetary assets obtained by the Company
from the government without charge. According to the beneficiaries stipulated in relevant government
documents, government grants are classified into asset-related government grants and revenue-related
government grants.
Asset-related government grants are those obtained by the Company for the acquisition,
construction, or formation of long-term assets by other means. Revenue-related government grants refer
to government grants other than asset-related government grants.
Government grants are recognized at the amount receivable if there is evidence at the end of the
period that the Company can meet the relevant conditions stipulated in the financial support policy and
is expected to receive financial support funds. Otherwise, government grants are recognized when
actually received.
Government grants in the form of monetary assets are measured at the amount received or
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
receivable. Government grants in the form of non-monetary assets are measured at fair value; if fair
value cannot be reliably obtained, they are measured at the nominal amount (RMB 1). Government
grants measured at nominal amounts are directly recorded in the profit or loss for the current period.
The Company determines whether a certain type of government grant matter should be accounted
for using the gross method or the net method based on the substance of the economic matter. Typically,
the Company selects only one method for same or similar government grant matters and consistently
applies that method to the matter.
Items Accounting Content
Category of Government Grants Accounted for Government grants related to anything other than loans of
Using the Gross Method discount interest
Category of Government Grants Accounted for Government grants related to loans of policy-oriented preferential
Using the Net Method interest rate
Asset-related government grants should either be offset against the book value of related assets or
be recognized as deferred revenues. Asset-related government grants recognized as deferred revenues
should be reasonably and systematically recorded in profit or loss over the useful life of the constructed
or purchased assets.
Revenue-related government grants used to compensate for expenses or losses in future periods are
recognized as deferred revenues and are recorded in profit or loss for the current period or offset against
related costs when the related expenses or losses are recognized. Grants used to compensate for expenses
or losses already incurred by the Company are recorded directly in profit or loss for the current period or
offset against related costs upon receipt.
Government grants related to the Company’s ordinary activities are recorded in other income or
offset against related costs. Government grants unrelated to the Company's ordinary activities are
recorded in non-operating income and expenses.
Government grants received related to loans of policy-oriented preferential interest are offset
against related borrowing costs. If loans of policy-oriented preferential interest rates provided by banks
are obtained, the actual amount received is treated as the entry value of the loans, and the related
borrowing costs are calculated based on the loan principal and the preferential interest rate.
When government grants already recognized need to be refunded, adjustments are made to the book
value of related assets if they are offset against the book value of the assets; the book balance of related
deferred revenues is offset if there are balances in the related deferred revenues and the surplus is
recorded in the profit or loss for the current period; and the surplus is recorded directly in profit or loss
for the current period if there are no balances in the related deferred revenues.
Applicable □ Not Applicable
Deferred income tax assets and deferred income tax liabilities are calculated and recognized based
on the difference between the tax basis and book value of assets and liabilities (temporary differences).
As of the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
using the tax rates applicable during the period when the assets are expected to be recovered or settled.
The Company recognizes deferred income tax assets generated from deductible temporary
differences, to the extent that it is probable to utilize them against taxable income that can be offset by
deductible temporary differences and can carry forward deductible losses and taxes in the subsequent
years. However, deferred income tax assets arising from the initial recognition of assets or liabilities in
transactions and exhibiting the following characteristics are not recognized: (1) the transaction does not
qualify as an enterprise merger; (2) the transaction neither affects accounting profit nor taxable profit or
deductible losses when it occurs.
For deductible temporary differences related to investments in associates, deferred income tax
assets are recognized if the following conditions are met simultaneously: the temporary differences are
likely to reverse in the foreseeable future, and taxable profit are likely available in the future to offset
deductible temporary differences.
The Company recognizes the taxable temporary differences that are due but unpaid in the current
and previous periods as deferred income tax liabilities, except to the extent that:
(1) The temporary difference arises from the initial recognition of goodwill;
(2) The temporary difference arises from transactions or matters that didn’t arise from enterprise
merger and neither affected the accounting profits nor taxable profit (or deductible losses);
(3) For taxable temporary differences related to investments in subsidiaries or associates, the
reversal of the temporary differences can be controlled and it is probable that the temporary differences
will not reverse in the foreseeable future.
income tax liabilities are presented as the net amount after offset
(1) The Company has the legal right to settle current income tax assets and liabilities on a net basis;
(2) Deferred income tax assets and deferred income tax liabilities relate either to income taxes
levied by the same tax authority on the same taxable entity or to different taxable entities. However, for
each significant period in which deferred income tax assets and deferred income tax liabilities are
reversed in the future, the intention of the entity involved is to settle the current income tax assets and
liabilities on a net basis or to simultaneously obtain assets and settle liabilities.
Applicable □ Not Applicable
Judgement Basis and Accounting Treatment Method for Simplified Disposal of Short-term Leases
and Leases of Low-value Assets as Lessee
Applicable □ Not Applicable
At the commencement of the lease term, the Company recognizes right-of-use assets and lease
liabilities for leases other than short-term leases and leases of low-value assets subject to simplified
disposal.
(1) Short-term Leases and Leases of Low-value Assets
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Short-term leases refer to leases that do not include a purchase option with a lease term of no more
than 12 months. Leases of low-value assets refer to leases where the individual leased asset, when brand
new, has a relatively low value, primarily including leases of temporary vehicles, office equipment, etc.
The Company does not recognize right-of-use assets and lease liabilities for the following
short-term leases and leases of low-value assets. The related lease payments are recorded in related asset
costs or current profit or loss in each period of the lease term on a straight-line basis or using other
systematic and reasonable methods.
Items Category of Leased Assets Subject to Simplified Disposal
Short-term Leases Lease term is less than or equal to 1 year
Leases of Low-value Assets Leases of office equipment with low unit value, etc.
The Company recognizes right-of-use assets and lease liabilities for short-term leases and leases of
low-value assets other than those mentioned above.
(I) Right-of-Use Assets
The Company initially measures right-of-use assets at cost, which includes:
relevant amount of lease incentives already received when there are lease incentives;
assets, restoring the leased asset site, or restoring leased assets to the conditions specified in the lease
agreement (excluding costs incurred for producing inventory).
After the commencement date of the lease term, the Company uses the cost model to measure
right-of-use assets subsequently.
If it is reasonably certain that the Company will obtain ownership of the leased asset at the end of
the lease term, the Company will depreciate the leased asset over its remaining useful life. If it is not
reasonably certain that the Company will obtain ownership of the leased asset at the end of the lease
term, the Company will depreciate the leased asset over the lease term or the remaining useful life of the
leased asset, whichever is shorter. For right-of-use assets with provision for impairment, the Company
will depreciate them in future periods based on the book value after deducting the impairment provision,
following the above principles.
The Company determines whether right-of-use assets have been impaired and accounts for any
identified impairment losses in accordance with the provisions of Accounting Standard for Business
Enterprises No. 8 – Asset Impairment. For details, please refer to Section 27 – Impairment of Long-term
Assets.
(II) Lease Liabilities
The Company initially measures lease liabilities at the present value of lease payments not yet paid
as of the lease commencement date. When calculating the present value of lease payments, the Company
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
uses the interest rate implicit in the lease as the discount rate; if the interest rate implicit in the lease
cannot be determined, the Company uses its incremental borrowing rate as the discount rate. Lease
payments include:
incentives;
payments include the exercise price of such option;
term, the lease payments include the amount required for exercising the said termination option;
The Company calculates the interest expense of lease liabilities for each period of the lease term
using a fixed discount rate and recognizes it in the profit or loss or related asset cost for the current
period.
Variable lease payments not included in the measurement of lease liabilities are recorded in profit
or loss or related asset cost for the period when they occur.
Classification Criteria and Accounting Treatment Method for Leases as Lessor
Applicable □ Not Applicable
(1) Classification of Leases
The Company classifies leases into financing leases and operating leases on the commencement
date of the lease. Financing leases refer to leases that substantially transfer all risks and rewards related
to ownership of the leased asset to the lessee, with or without ultimate transfer of the ownership.
Operating leases are leases other than financing leases.
The Company generally classifies a lease as a financing lease if it meets one or more of the
following conditions:
sufficiently lower than the fair value of the leased asset at the time the option is expected to be exercised,
so that it can be reasonably determined that the lessee will exercise the option on the commencement
date of the lease.
of the useful life of the asset.
to the fair value of the leased asset.
modifications.
The Company may also classify a lease as a financing lease if it aligns with one or more of the
following indicators:
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
by the lessee.
attribute to the lessee.
standard.
(2) Accounting Treatment of Financing Leases
On the commencement date of the lease term, the Company recognizes amounts receivable from
financing leases and derecognizes the finance lease assets.
At the initial measurement of amounts receivable from financing leases, the sum of the
unguaranteed residual value and the present value of lease receipts not yet received as of the
commencement date of the lease term discounted at the interest rate implicit in lease is treated as the
entry value of the accounts receivable from the financing leases. Lease receipts include:
incentives;
receipts include the exercise price of the purchase option;
amounts payable by the lessee upon exercise of the termination option;
third parties with the economic capability to fulfill guarantee obligations to the lessor.
The Company calculates and recognizes interest income for each period of the lease term using a
fixed lease rate implicit in lease. Variable lease payments not included in the net investment in the lease
are recorded in profit or loss for the period when incurred.
(3) Accounting Treatment of Operating Leases
For each period of the lease term, the Company recognizes lease receipt from operating leases using
the straight-line method or other systematical and rational methods as rental income. Initial direct costs
incurred related to operating leases are capitalized and amortized over the lease term on the same basis
as the recognition of rental income and are recorded in the profit or loss for each period. Variable lease
payments related to operating leases but not included in lease receipts are recorded in profit or loss for
the period when incurred.
Applicable □ Not Applicable
(1) Repurchase of the Shares
The consideration and transaction costs paid in the repurchase of the Company’s shares reduce
shareholders' equity. Gains or losses are not recognized during repurchase, transfer, or cancellation of the
Company’s shares.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
When transferring treasury shares, the Company records them in the capital reserve based on the
difference between the amount actually received and the book value of the treasury shares. If the capital
reserve is insufficient to offset, they are offset by the surplus reserve and undistributed profits. When
canceling treasury shares, the Company reduces share capital based on the book value of shares and
quantity of canceled shares and offsets the difference between the book balance and book value of the
canceled treasury shares using the capital reserve. If the capital reserve is insufficient to offset, they are
offset by the surplus reserve and undistributed profits.
(2) Work Safety Fees
Work safety fees withdrawn by the Company as specified by the state are recorded in the costs of
the relevant products or in profit or loss for the current period and simultaneously recorded in the
account of "special reserves". When the withdrawn work safety fees are utilized as expenses, they are
directly offset against special reserves. In cases where the work safety fees form fixed assets, the
expenditures arising from the aggregation of the account of "construction in progress" are recognized as
fixed assets when the safety project is completed and reaches the intended usable state. Simultaneously,
the cost of forming fixed assets is offset against special reserves, and the same amount of accumulated
depreciation is recognized. Depreciation is no longer provided for these fixed assets in subsequent
periods.
(1). Changes in Significant Accounting Policies
□Applicable Not Applicable
(2). Significant Changes in Accounting Estimates
□Applicable Not Applicable
(3). Financial Statements Involving Adjustments to the First-Time Implementation of New
Accounting Standards or Interpretations from 2025 Onward
□Applicable Not Applicable
□Applicable Not Applicable
VI. Taxes
Major Tax Types and Tax Rates
Applicable □ Not Applicable
Tax Type Basis of Taxation Tax Rate
Domestic Sales 13%, 9%, 0%
Provision of Real Estate Leasing Services 9%
Value-added Tax
Other Taxable Sales and Services 6%
Simplified Tax Calculation Method 5% or 3%
Consumption Tax
Business Tax
Urban Maintenance and
Actually Paid Turnover Tax Amount 7%, 5%
Construction Tax
Corporate Income Tax Taxable Income 15%, 16.5%, 20%, 25%, 0%, 17%
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
The tax base is 70% of the original value
Property Tax 1.2%, 12%
of the property (or rental income).
Education Surcharge Actually Paid Turnover Tax Amount 3%
Local Education Surcharge Actually Paid Turnover Tax Amount 2%
Elaboration on the disclosure of entities taxed at differing corporate income tax rates.
Applicable □ Not Applicable
Income Tax
Taxpayer Name
Rate (%)
The Company 15
Meihua Group International Trading (Hong Kong) Limited (hereinafter referred to as "Hong Kong
Meihua")*
Langfang Meihua Seasoning Co., Ltd. (hereinafter referred to as "Langfang Seasoning") 25
Tongliao Meihua Seasoning Co., Ltd. (hereinafter referred to as "Tongliao Seasoning") 25
Langfang Meihua Bio-Technology Development Co., Ltd. (hereinafter referred to as "Langfang
Development")
Langfang BAIAN Technology Co., Ltd. (hereinafter referred to as "Langfang BAIAN") 25
Meihua (Shanghai) Biotechnology Co., Ltd. (hereinafter referred to as "Shanghai R & D") 20
Lhasa Meihua Biological Investment Holding Co., Ltd. (hereinafter referred to as "Lhasa Meihua") 15
Tongliao Meihua Biotechnology Co., Ltd. (hereinafter referred to as "Tongliao Meihua") 15
Tongliao Jianlong Chemical Co., Ltd. (hereinafter referred to as “Tongliao Jianlong”) 25
Xinjiang Meihua Amino Acid Co., Ltd. (hereinafter referred to as "Xinjiang Meihua") 15
Xinjiang Meihua Agricultural Development Co., Ltd. (hereinafter referred to as "Xinjiang
Agriculture")
Wujiaqu Jianlong Chemical Co., Ltd. (hereinafter referred to as “Wujiaqu Jianlong”) 20
Jilin Meihua Amino Acid Co., Ltd. (hereinafter referred to as "Jilin Meihua") 15
Zhuhai Hengqin Meihua Biotechnology Co., Ltd. (hereinafter referred to as "Hengqin Meihua") 20
HONG KONG PLUM HOLDING LIMITED (hereinafter referred to as "Hong Kong Holdings")* 16.5
CAYMAN PLUM HOLDING LIMITED (hereinafter referred to as "Cayman Company") 0
PLUM BIOTECHNOLOGY GROUP PTE.LTD. (hereinafter referred to as “Singapore Company”) 15
PLUMINO PRECISION FERMENTATION HOLDINGS PTE. LTD. (hereinafter referred to as the
“Singapore SPV”)
Plumino Precision Fermentation US Holdings, Inc. (hereinafter referred to as the “U.S. Holding Federal tax,
Company”)** state tax
* Subsidiaries of the Company, Hong Kong Meihua, and Hong Kong Holdings are wholly-owned
subsidiaries registered with the Companies Registry of Hong Kong. The profits tax is based on a
two-tiered tax system, with a tax rate of 8.25% for the first HKD 2 million of profits and 16.5%
thereafter.
** The U.S. holding company had not commenced actual operations as of the end of June 2025.
Under applicable U.S. federal and state tax regulations, the company is subject to a federal corporate
income tax of 21% and state income tax in the jurisdiction where it operates. Currently, the company is
registered in Delaware but has not yet begun actual operations.
Applicable □ Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1) The Company is registered in Lhasa City, Tibet Autonomous Region. According to the
Announcement of the Ministry of Finance, the State Taxation Administration, and the National
Development and Reform Commission on Extending the Corporate Income Tax Policy for Western
Development Enterprises (2020, No. 23), from January 1, 2021, to December 31, 2030, enterprises
engaged in encouraged industries and located in the western regions are subject to a reduced corporate
income tax rate of 15%.
(2) Langfang R & D, a subsidiary of the Company, was certified as a high-tech enterprise by
the Hebei High-tech Enterprise Certification and Management Working Group on November 22,
November 22, 2025. Corporate income tax is levied at a rate of 15% for the fiscal year 2025.
(3) Jilin Meihua, a subsidiary of the Company, was certified as a high-tech enterprise by the
Jilin High-tech Enterprise Certification and Management Working Group on November 1, 2024,
with certificate No. GR202422000344. The validity period is three years, and in 2025, the
corporate income tax will be levied at a rate of 15%.
(4) Tongliao Meihua and Xinjiang Meihua, subsidiaries of the Company, are entitled to a
reduced corporate income tax rate of 15% for enterprises engaged in encouraged industries in the
western region, as stipulated in the Announcement No. 23 [2020] of the Ministry of Finance -
Announcement of the Ministry of Finance, the State Taxation Administration, and the National
Development and Reform Commission on the Continuation of the Corporate Income Tax Policy
for the Development of the Western Region from January 1, 2021, to December 31, 2030.
(5) The Company’s subsidiary, the Singapore Company, has successfully obtained the
“Development and Expansion Incentive” under the “International Headquarters Incentive Scheme”
established by the Singapore Economic Development Board (“EDB”). According to the relevant
regulations, from December 30, 2024, for a period of five years, the Singapore Company is entitled to a
preferential tax rate of 15% as long as it continues to meet the requirements set by the EDB.
(6) According to the Announcement No. 6 [2023] of the State Taxation Administration and the
Ministry of Finance - Announcement of the Ministry of Finance on the Income Tax Preferential
Policies for Small and Micro Enterprises and Individual Industrial and Commercial Businesses,
Shanghai R & D, Hengqin Meihua and Wujiaqu Jianlong, subsidiaries of the Company, are entitled
to a tax incentive. For the portion of annual taxable income of small-scale and micro-profit
enterprises not exceeding RMB 1 million, a reduced rate of 25% is applied to the taxable income,
and the corporate income tax is levied at a rate of 20%.
(7) According to Article V of Document ZZF [2022] No. 11 - Notice of the People’s Government
of the Tibet Autonomous Region on Issuance of the Interim Measures for the Implementation of
Corporate Income Tax Policies in the Tibet Autonomous Region, Lhasa Meihua, a subsidiary of the
Company, is entitled to exemption from the local portion of corporate income tax and should pay
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
corporate income tax at a rate of 15%, provided that it absorbs more than 70% of the permanent
residents in Tibet and employs more than 15 individuals from January 1, 2022 to December 31, 2025.
□Applicable Not Applicable
VII.Notes to Consolidated Financial Statements
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Cash on Hand
Bank Deposits 2,699,729,334.80 4,112,897,142.87
Other Monetary Funds 213,718,883.50 447,591,156.66
Unexpired Interest Receivable 309,497.11 567,894.43
Deposits with Financial Companies
Total 2,913,757,715.41 4,561,056,193.96
Including: Total Amount Deposited
Overseas
Other Explanations
Items Ending Balance Beginning Balance
Bank Acceptance Draft Guarantee
Deposit
Others 112,361.39 113,485.46
Total 190,704,256.91 428,628,697.39
from the ending cash and cash equivalents.
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Reason and Basis for
Items Ending Balance Beginning Balance
Designation
Financial Assets Measured at Fair Value with
Changes in Fair Value Recorded in the Profit or 1,397,826,972.26 312,033,611.07 /
Loss for the Current Period
Including:
Others 1,397,826,972.26 312,033,611.07 /
Financial Assets Designated as Being Measured at
Fair Value with Changes in Fair Value Recorded in
the Profit or Loss for the Current Period
Including:
Total 1,397,826,972.26 312,033,611.07 /
Other Explanations:
Applicable □ Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Financial assets held for trading refer to wealth management products purchased by the Company
and its subsidiaries.
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Derivative Financial Assets 468,200.00
Total 468,200.00
Other Explanations:
None
(1). Classified Presentation of Notes Receivable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Bank Acceptance Notes 92,822,653.44 73,697,475.30
Commercial Acceptance Notes
Total 92,822,653.44 73,697,475.30
As of June 30, 2025, the Company believes that the notes receivable held do not have significant
credit risks and will not incur significant losses due to default by banks or other issuers.
(2). Notes receivable that have been pledged by the Company at the end of the period
□Applicable Not Applicable
(3). Notes receivable that have been endorsed or discounted by the Company at the end of the
period and are not due as of the balance sheet date
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount derecognized as at the end of Amount not derecognized as at the end
Items
the period of the period
Bank Acceptance Notes 52,335,240.96
Commercial Acceptance Notes
Total 52,335,240.96
(4). Classified Disclosure by the Bad Debt Provision Methods
□Applicable Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of Significant Changes in the Book Value of Notes Receivable with Changes in Loss
Reserves during the Current Period:
□Applicable Not Applicable
(5). Status of Bad Debt Reserves
□Applicable Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
□Applicable Not Applicable
Other Explanations:
None
(6). Notes Receivable Actually Written Off during the Current Period
□Applicable Not Applicable
Including write-offs of significant notes receivable:
□Applicable Not Applicable
Explanation of Write-offs of Notes Receivable:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
(1).Disclosure by Aging
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending Book Value Beginning Book Value
Within 1 year (Including 1 year) 638,783,231.02 617,940,479.57
Within 1 year 638,783,231.02 617,940,479.57
Over 3 years
Over 5 years
Total 639,408,964.70 618,902,793.59
(2).Classified Disclosure by Bad Debt Provision Methods
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Book Balance Bad Debt Reserves Book Balance Bad Debt Reserves
Category Provision
Ratio Provision Book Value Book Value
Amount Amount Amount Ratio(%) Amount Ratio
(%) Ratio (%)
(%)
Provisions for Bad Debt
Reserves on an
Individual-item Basis
Including:
Provisions for Bad Debt
Reserves on a Portfolio 639,408,964.70 100.00 32,001,734.89 5.00 607,407,229.81 618,902,793.59 100.00 30,993,255.38 5.01 587,909,538.21
Basis:
Including:
Including: Aging
Analysis Portfolio
Total 639,408,964.70 / 32,001,734.89 / 607,407,229.81 618,902,793.59 / 30,993,255.38 / 587,909,538.21
Provisions for Bad Debt Reserves on an Individual-item:
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Provisions for Bad Debt Reserves on a Portfolio Basis:
√Applicable □Not Applicable
Items for Provision on a Portfolio Basis: Aging Analysis Portfolio
Unit: Yuan Currency: RMB
Ending Balance
Name
Book Balance Bad Debt Reserves Provision Ratio (%)
Within 1 year 638,783,231.02 31,939,161.52 5.00
Total 639,408,964.70 32,001,734.89 5.00
Explanation of Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of Significant Changes in the Book Value of Accounts Receivable with Changes in Loss
Reserves during the Current Period:
□Applicable Not Applicable
(3).Status of Bad Debt Reserves
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount of Changes during the Current Period
Beginning Ending
Category Recovered Other
Balance Provision Written off Balance
or Reversed Changes
Provisions for Bad
Debt Reserves on
an Individual-item
Basis
Provisions for Bad
Debt Reserves on 30,993,255.38 1,008,479.51 32,001,734.89
a Portfolio Basis:
Including: Aging
Analysis Portfolio
Total 30,993,255.38 1,008,479.51 32,001,734.89
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable Not Applicable
Other Explanations:
None
(4).Accounts Receivable Actually Written Off during the Current Period
□Applicable Not Applicable
Including write-off of significant accounts receivable:
□Applicable Not Applicable
Explanation of Write-off of Accounts Receivable:
□Applicable Not Applicable
(5).Overview of Accounts Receivable and Contract Assets Ranking Top Five in Ending Balances
Aggregated by Debtors
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Proportion in the
Total Amount of
Ending Balances
Ending Balances Ending Balances Ending Balances Ending Balances
of Accounts
Entity Name of Accounts of Contract of Accounts of Bad Debt
Receivable and
Receivable Assets Receivable and Reserves
Contract Assets
Contract Assets
(%)
First 143,902,284.40 143,902,284.40 22.51 7,195,114.22
Second 70,695,835.25 70,695,835.25 11.06 3,534,791.76
Third 57,690,728.15 57,690,728.15 9.02 2,884,536.41
Fourth 47,283,093.28 47,283,093.28 7.39 2,364,154.66
Fifth 39,466,442.75 39,466,442.75 6.17 1,973,322.14
Total 359,038,383.82 359,038,383.82 56.15 17,951,919.19
Other Explanations
None
Other Explanations:
Applicable □ Not Applicable
Accounts receivable derecognized due to non-transfer of financial assets at the end of the period
Amount of assets and liabilities arising from non-transfer of accounts receivable and continued
involvement
At the end of the period, there were no amounts receivable from shareholder units holding 5% or
more of the Company’s voting shares. Please refer to (6) in the Section XIV - Related Parties and
Related Transactions for other amounts receivable from related parties.
(1).Status of Contract Assets
□Applicable Not Applicable
(2).Amount of and Reasons for Significant Changes in Book Value during the Reporting Period
□Applicable Not Applicable
(3).Classified Disclosure by Bad Debt Provision Methods
□Applicable Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of significant changes in the book balance of contract assets with changes in loss reserves
during the current period:
□Applicable Not Applicable
(4).Status of Provisions for Bad Debt Reserves for Contract Assets during the Current Period
□Applicable Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
□Applicable Not Applicable
Other Explanations:
None
(5).Status of Contract Assets Actually Written Off during the Current Period
□Applicable Not Applicable
Including write-off of significant contract assets
□Applicable Not Applicable
Explanation of Write-off of Contract Assets:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
(1).Classified Presentation of Receivables Financing
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Notes Receivable 17,898,994.18 26,575,904.82
Accounts Receivable 146,540.16 147,150.17
Total 18,045,534.34 26,723,054.99
(2).Receivables Financing that have been pledged by the Company at the end of the period
□Applicable Not Applicable
(3).Receivables Financing that have been endorsed or discounted by the Company at the end of the
period and are not due as of the balance sheet date
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount derecognized as at the end of Amount not derecognized as at the end
Items
the period of the period
Bank Acceptance Notes 362,480,706.39
Accounts Receivable Factoring
Total 362,480,706.39
(4).Classified Disclosure by Bad Debt Provision Methods
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Book Balance Bad Debt Reserves Book Balance Bad Debt Reserves
Category Provision Provision
Book Value Book Value
Amount Ratio(%) Amount Ratio Amount Ratio(%) Amount Ratio
(%) (%)
Provisions for Bad Debt
Reserves on an
Individual-item Basis
Including::
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Provisions for Bad Debt
Reserves on a Portfolio 18,053,246.98 100.00 7,712.64 0.04 18,045,534.34 26,730,799.74 100.00 7,744.75 0.03 26,723,054.99
Basis:
Including::
Notes Receivable 17,898,994.18 99.15 17,898,994.18 26,575,904.82 99.42 26,575,904.82
Accounts Receivable 154,252.80 0.85 7,712.64 5.00 146,540.16 154,894.92 0.58 7,744.75 5.00 147,150.17
Total 18,053,246.98 / 7,712.64 / 18,045,534.34 26,730,799.74 / 7,744.75 / 26,723,054.99
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
√Applicable □Not Applicable
Items for provisions on a portfolio basis: Accounts receivable
Unit: Yuan Currency: RMB
Ending Balance
Name
Receivables Financing Bad Debt Reserves Provision Rate (%)
Accounts Receivable 154,252.80 7,712.64 5.00
Total 154,252.80 7,712.64 5.00
Explanation of Provisions for Bad Debt Reserves on a Portfolio Basis
□Applicable Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of significant changes in the book balance of Receivables Financing with changes in loss
reserves during the current period:
Applicable □ Not Applicable
None
(5).Status of Bad Debt Reserves
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount of Changes during the Current Period
Beginning Ending
Category Recovered or Other
Balance Provision Written off Balance
Reversed Changes
Provisions for Bad Debt
Reserves on an
Individual-item Basis
Provisions for Bad Debt
Reserves on a Portfolio 7,744.75 32.11 7,712.64
Basis
Including: Notes
Receivable
Accounts Receivable 7,744.75 32.11 7,712.64
Total 7,744.75 32.11 7,712.64
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable Not Applicable
Other Explanations:
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
None
(6).Status of Receivables Financing Actually Written Off during the Current Period
□Applicable Not Applicable
Including write-off of significant Receivables Financing
□Applicable Not Applicable
Write-off Explanation:
□Applicable Not Applicable
(7).Fluctuations in Receivables Financing and Changes in Fair Value during the Current Period:
Applicable □Not Applicable
The change amount for this
Beginning Balance Ending Balance
period
Items
Changes in Changes in Changes in
Cost Cost Cost
Fair Value Fair Value Fair Value
Notes
Receivable
Accounts
Receivable
Total 26,730,799.74 -7,744.75 -8,677,552.76 32.11 18,053,246.98 -7,712.64
(8).Other Explanations:
□Applicable Not Applicable
(1). Presentation of Prepayments on Aging
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Aging
Amount Ratio (%) Amount Ratio (%)
Within 1 year 107,588,099.18 99.78 219,536,259.06 99.79
Over 3 years 169,250.69 0.16 464,602.69 0.21
Total 107,821,158.00 100.00 220,000,861.75 100.00
Explanation for significant prepayments with aging exceeding 1 year and not settled timely:
There are no significant prepayments with aging exceeding one year at the end of the period.
(2). Overview of Prepayments Ranking Top Five in Ending Balances Aggregated by Prepayment
Recipients
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Proportion in Total Amount of Ending
Entity Name Ending Balance
Balances of Prepayments (%)
First 15,183,962.44 14.08
Second 11,806,232.60 10.95
Third 10,637,533.31 9.87
Fourth 7,583,887.95 7.03
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Fifth 7,006,154.47 6.50
Total 52,217,770.77 48.43
Other Explanations:
The prepayments at the end of the period do not include amounts paid to shareholders holding 5%
or more (inclusive) of the company’s voting shares or other related party amounts. For details, please
refer to Section XIV, Related Parties and Related Party Transactions (6).
Other Explanations
□Applicable Not Applicable
Presentation of Items
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Interest Receivable 2,362,500.00 1,575,000.00
Dividend Receivable 1,395,866.49 1,395,866.49
Other Receivables 24,909,713.36 46,322,133.07
Total 28,668,079.85 49,292,999.56
Other Explanations:
□Applicable Not Applicable
Interest Receivable
(1). Classification of Interest Receivable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Fixed Deposits
Entrusted Loans
Bond Investments
Debt Investments 2,362,500.00 1,575,000.00
Fixed Deposits 2,362,500.00 1,575,000.00
(2). Significant Overdue Interest
□Applicable Not Applicable
(3). Classified Disclosure by Bad Debt Provision Methods
□Applicable Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable Not Applicable
(4). Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
(5). Status of Bad Debt Reserves
□Applicable Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Other Explanations:
None
(6). Status of Interests Receivable Actually Written Off during the Current Period
□Applicable Not Applicable
Including write-off of significant interest receivable
□Applicable Not Applicable
Write-off Explanation:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Dividends Receivable
(1). Dividends Receivable
Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item (or Investee) Ending Balance Beginning Balance
Tongliao Desheng Bio-techn Co., Ltd. 1,395,866.49 1,395,866.49
Total 1,395,866.49 1,395,866.49
(2). Significant Dividends Receivable with Aging Exceeding 1 Year
□Applicable Not Applicable
(3). Classified Disclosure by Bad Debt Provision Methods
□Applicable Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable Not Applicable
(4). Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
(5). Status of Bad Debt Reserves
□Applicable Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable Not Applicable
Other Explanations:
None
(6). Status of Dividends Receivable Actually Written off during the Current Period
□Applicable Not Applicable
Including write-off of significant dividends receivable
□Applicable Not Applicable
Write-off Explanation:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Other Receivables
(1). Disclosure by Aging
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Book Balance at the Beginning of the
Aging Book Balance at the End of the Period
Period
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Within 1 year (Including 1 year) 24,482,657.39 46,467,795.88
Within 1 year 24,482,657.39 46,467,795.88
Over 3 years
Over 5 years 109,617,343.84 109,567,343.84
Total 141,244,894.92 163,521,800.17
(2). Classification of Accounts by Nature
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Book Balance at the Beginning of the
Account Nature Book Balance at the End of the Period
Period
External Unit Account Current 28,178,262.18 27,900,225.75
Guarantee Deposit 1,092,072.26 1,516,947.79
Land and Real Estate Account
Receivable
Export Tax Refunds Receivable 17,607,483.72 37,629,851.01
Others 8,694,389.76 10,802,088.62
Total 141,244,894.92 163,521,800.17
(3). Provisions for Bad Debt Reserves
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Stage One Stage Two Stage Three
Expected Credit
Losses for the Expected Credit
Expected Credit
Bad Debt Reserves Entire Duration Losses for the Entire Total
Losses for the
(Credit Duration (Credit
Next 12 Months
Impairment Not Impairment Occurred)
Yet Occurred)
Balance as of January 1, 2025 4,247,487.67 112,952,179.43 117,199,667.10
Balance as of January 1, 2025
for the Current Period
-- Transferred to Stage Two
-- Transferred to Stage Three
-- Reversed to Stage Two
-- Reversed to Stage One
Provision for the Current
Period
Reversal for the Current
Period
Write-Off for the Current
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Period
Write-Off for the Current
Period
Other Changes
Balance as of June 30, 2025 3,383,002.13 112,952,179.43 116,335,181.56
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of Significant Changes in the Book Balance of Other Receivables with Changes in Loss
Reserves during the Current Period:
□Applicable Not Applicable
Basis for the Amount of Provisions for Bad Debt Reserves for the Current Period and for the
Assessment of Significant Increase in Credit Risk for Financial Instruments:
□Applicable Not Applicable
(4). Status of Bad Debt Reserves
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount of Changes during the Current Period
Beginning Recovered Ending
Category Written Other
Balance Provision or Balance
off Changes
Reversed
Other Accounts
Receivable based on
Provisions for Bad Debt 112,952,179.43 112,952,179.43
Reserves on an
Individual-item Basis
Other Accounts
Receivable based on
Provisions for Bad Debt 4,247,487.67 864,485.54 3,383,002.13
Reserves on a Portfolio
Basis
Including: Aging Analysis
Portfolio
Total 117,199,667.10 864,485.54 116,335,181.56
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable Not Applicable
Other Explanations
None
(5). Status of Other Receivables Actually Written off during the Current Period
□Applicable Not Applicable
Including write-off of significant other receivables:
□Applicable Not Applicable
Explanation of Write-Off of Other Receivables:
□Applicable Not Applicable
(6). Overview of Other Receivables Ranking Top Five in Ending Balances Aggregated by Debtors
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Proportion in the Total
Ending Balance
Amount of Ending
Entity Name Ending Balance Account Nature Aging of Bad Debt
Balances of Other
Reserves
Receivables (%)
Baizhou Metal, Glass Land and Real
and Furniture 85,672,687.00 60.66 Estate Accounts Over 5 years 85,672,687.00
Industrial Park Receivable
Kezuo Zhongqi Jucang
External Unit
Grain Trading Co., 22,805,887.09 16.15 Over 5 years 22,805,887.09
Account Current
Ltd.
Inner Mongolia
Autonomous Region
Export Tax
Tax Service, State 9,796,331.61 6.94 Within 1 year 489,816.58
Refunds
Taxation
Administration
Lhasa Economic and
Technological
Development Zone Export Tax
Taxation Bureau, State Refunds
Taxation
Administration
External Unit
Zhang Wei 2,495,195.17 1.77 3–4 years 2,495,195.17
Account Current
Total 128,581,252.98 91.03 / / 111,854,143.45
(7). Presented under Other Receivables due to Centralized Fund Management
□Applicable Not Applicable
Other Explanations:
Applicable □ Not Applicable
There were no other receivables involving government grants at the end of the period.
There were no other receivables derecognized due to transfer of financial assets at the end of the
period.
There were no amounts of assets and liabilities formed due to the transfer of other receivables and
continued involvement.
Other receivables at the end of the period do not contain the accounts to shareholder units holding
(1). Classification of Inventories
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Inventory Inventory
Write Write
Down/Contract down/Contract
Book Balance Book Value Book Balance Book Value
Performance Fulfillment
Cost Write Cost Write
Down Down
Raw Materials 1,621,026,503.85 3,263,757.95 1,617,762,745.90 1,869,291,071.68 3,552,300.96 1,865,738,770.72
Work in
Progress
Inventory
Goods
Turnover
Materials
Consumable
Biological
Assets
Contract
Performance
Cost
Goods Issued 218,929,497.44 218,929,497.44 195,625,080.53 195,625,080.53
Total 2,516,390,254.76 3,506,031.05 2,512,884,223.71 2,728,727,761.06 6,447,852.99 2,722,279,908.07
(2). Recognition of Data Resources as Inventory
□Applicable Not Applicable
(3). Capitalized Amount of Borrowing Costs Included in Inventory Balance at the End of the
Period and Its Calculation Criteria and Basis
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increased Amount for the Decreased Amount for the
Beginning Current Period Current Period Ending
Items
Balance Reversed or Balance
Provision Others Others
Written off
Raw Materials 3,552,300.96 376,626.50 665,169.51 3,263,757.95
Work in Progress
Inventory Goods 2,895,552.03 75,086.66 2,728,365.59 242,273.10
Turnover Materials
Consumable
Biological Assets
Contract
Performance Cost
Goods Issued
Total 6,447,852.99 451,713.16 3,393,535.10 3,506,031.05
Reason for Reversal or Write-off of Inventory Write-down Provision During the Current Period
√ Applicable □ Not Applicable
Explanation on Inventory Write-down Provision and Provision for Contract Performance Cost
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Impairment:
Basis for determining net realizable value: The net realizable value is determined as the estimated
selling price of the relevant finished goods less the estimated costs to be incurred until completion,
estimated selling expenses, and related taxes.
Reason for reversal: The factors that previously led to the inventory write-down have disappeared,
resulting in the net realizable value exceeding the carrying amount of the inventory.
Reason for write-off: The inventory for which a write-down provision was made at the beginning of
the period has been consumed or sold during the current period.
Provision for Inventory Write-down on a Portfolio Basis
□Applicable Not Applicable
Provision Criteria for Inventory Write-down on a Portfolio Basis
□Applicable Not Applicable
(4). Explanation of the Amortization Amount of Contract Performance Costs for the Current
Period
□Applicable Not Applicable
(5). Explanation of Amortization of Contract Performance Costs for the Current Period
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Debt Investments Due within One Year
Other Debt Investments Due within One
Year
Large-denomination Certificates of 108,345,222.59
Deposit Maturing within One Year
Long-Term Receivables Due within One
Year
Total 108,345,222.59 182,257,027.81
Debt Investments Due within One Year
□Applicable Not Applicable
Other Debt Investments Due within One Year
□Applicable Not Applicable
Other explanations for non-current assets due within one year:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Items Ending Balance Beginning Balance
Cost of Contract Acquisition
Cost of Receivable Returns
Input Tax Credit for Value-Added Tax 108,936,336.76 82,698,855.12
Prepaid Taxes and Fees 2,286,465.72 4,981,517.30
Deferred Expenses 9,152,525.40 5,353,515.59
Large-denomination Certificate of
Deposit
Prepaid investment payments 832,300,525.97
Total 1,053,547,103.85 164,629,398.67
Other Explanations:
None
(1).Status of Debt Investments
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Items Impairmen Impairmen
Book Balance Book Value Book Balance Book Value
t Reserves t Reserves
Tongliao Hailin
Biotechnology 10,500,000.00 10,500,000.00 10,500,000.00 10,500,000.00
Co., Ltd.
Total 10,500,000.00 10,500,000.00 10,500,000.00 10,500,000.00
Changes in Debt Investment Impairment Reserves for the Current Period
□Applicable Not Applicable
(2).Significant Debt Investments at the End of the Period
□Applicable Not Applicable
(3).Provision for Impairment Reserves
□Applicable Not Applicable
Basis for Staging and Provision Ratios for Impairment Reserves:
None
Explanation of Significant Changes in Book Balance of Debt Investments with Changes in Loss
Reserves during the Current Period:
□Applicable Not Applicable
Basis for the Amount of Provisions for Impairment Reserves and the Assessment of Significant Increase
in Credit Risk of Financial Instruments
□Applicable Not Applicable
(4).Status of Debt Investments Actually Written Off during the Current Period
□Applicable Not Applicable
Including the write-off of significant debt investments
□Applicable Not Applicable
Explanation of Write-off of Debt Investments:
□Applicable Not Applicable
Other Explanations:
None
(1).Status of Other Debt Investments
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Changes in Impairment Reserves for Other Debt Investments for the Current Period
□Applicable Not Applicable
(2).Significant Other Debt Investments at the End of the Period
□Applicable Not Applicable
(3).Provisions for Impairment Reserves
□Applicable Not Applicable
(4).Status of Other Debt Investments Actually Written off during the Current Period
□Applicable Not Applicable
Including the write-off of significant other debt investments
□Applicable Not Applicable
Explanation of write-off of other debt investments:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
(1).Status of Long-term Receivables
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance Range of
Items Book Bad Debt Book Bad Debt Book Discount
Book Value
Balance Reserves Balance Reserves Value Rates
Financing Lease Receivables 619,712.60 619,712.60 601,043.91 601,043.91
Including: Unrealized
Financing Income
Goods Sold on an Installment
Basis
Services Provided on an
Installment Basis
Equity Transfer Payment
Less: Long-term Receivables
Due within One year
Total 619,712.60 619,712.60 601,043.91 601,043.91 /
(2).Classified Disclosure by Bad Debt Provision Methods
□Applicable Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
(3).Status of Bad Debt Reserves
□Applicable Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable Not Applicable
Other Explanations:
None
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(4).Status of Long-term Receivables Actually Written Off during the Current Period
□Applicable Not Applicable
Including Write-off of Significant Long-term Receivables
□Applicable Not Applicable
Explanation of Write-off
□Applicable Not Applicable
Other Explanations:
Applicable □Not Applicable
As of the end of the reporting period, there were no long-term receivables that had been
derecognized due to the transfer of financial assets.
As of the end of the reporting period, there were no assets or liabilities arising from transferred
long-term receivables in which the Company retained continuing involvement.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1).Status of Long-term Equity Investments
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase/Decrease during the Current Period
Ending
Beginning Opening Investment Declaration Ending
Adjustments to Provisions Balances
Balance balance of Profit or Loss Other of Cash Balance
Invested Unit Increase Decrease Other for of
(Book impairment Recognized Equity Dividend or Others (Book
Investment Investment Comprehensive Impairment Impairment
Value) provision under Equity Changes Profits Value)
Income Reserves Reserves
Method Distribution
I. Joint Ventures
Subtotal
II. Associates
Tongliao Desheng Bio-Tech
Co., Ltd.
Subtotal 6,874,939.88 -923,353.98 5,951,585.90
Total 6,874,939.88 -923,353.98 5,951,585.90
(2).Impairment Testing of Long-term Equity Investments
□Applicable Not Applicable
Other Explanations
None
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1).Status of Other Equity Instrument Investments
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase/Decrease During the Current Period Reasons for
Designation as
Gains
Dividend Losses Measured at
Gains Recorded Losses Recorded Cumulatively
Income Cumulatively Fair Value with
Beginning in Other in Other Recorded in
Items Increase Decrease Ending Balance Recognized for Recorded in Other Changes
Balance Comprehensive Comprehensive Others Other
Investment Investment the Current Comprehensive Recorded in
Income for the Income for the Comprehensive
Period Income Other
Current Period Current Period Income
Comprehensive
Income
Planned for
Bank of Tibet
Co., Ltd.
Holding
Planned for
AIM Vaccine
Co., Ltd.
Holding
Total 441,294,280.00 113,759,630.00 327,534,650.00 3,308,800.00 151,695,547.50 /
(2).Explanation of Cases Involving Derecognition During the Current Period
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
□Applicable Not Applicable
Measurement Model for Investment Properties
Not Applicable
Presentation of Items
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Fixed Assets 11,305,605,148.16 11,338,208,623.56
Clearance of Fixed Assets
Total 11,305,605,148.16 11,338,208,623.56
Other Explanations:
None
Fixed Assets
(1).Status of Fixed Assets
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Office and
Housing and Machinery and Transportation
Items Other Total
Structures Equipment Tools
Equipment
I. Original Book Value:
the Current Period
(1) Acquisition 4,861,733.16 14,874,476.64 1,089,859.71 3,242,988.12 24,069,057.63
(2) Transfer from
Construction in Progress
(3) Increase from
Enterprise Merger
Others 1,543,893.80 1,543,893.80
for the Current Period
(1) Disposal or
Scrapping
Transfer to
Construction in Progress
Others 1,478.76 1,478.76
II. Accumulated Depreciation
the Current Period
(1) Provision 180,269,574.19 468,691,082.19 1,689,741.08 12,660,493.48 663,310,890.94
Others 900,604.65 900,604.65
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
the Current Period
(1) Disposal or
Scrapping
Transfer to
Construction in Progress
Others
III. Impairment Reserves
the Current Period
(1) Provision 8,740,575.36 44,318.12 8,784,893.48
the Current Period
(1) Disposal or
Scrapping
IV. Book Value
of the Period
Beginning of the Period
(2).Status of Temporarily Idle Fixed Assets
□Applicable Not Applicable
(3).Fixed Assets Leased through Operating Leases
□Applicable Not Applicable
(4).Status of Fixed Assets without Property Ownership Certificates
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Reasons for Lack of Property
Items Book Value
Ownership Certificates
Housing and Structures 150,733,967.31 In Process
Total 150,733,967.31
(5).Impairment Testing of Fixed Assets
□Applicable Not Applicable
Other Explanations:
Applicable □ Not Applicable
The book value of fixed assets used for mortgage at the end of the period is RMB 373,067,063.83.
Please refer to (1) in Section XVI - Commitments and Contingencies for details.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Clearance of Fixed Assets
□Applicable Not Applicable
Presentation of Items
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Construction in Progress 1,095,783,702.50 714,122,720.14
Engineering Materials 37,455,318.25 14,401,421.40
Total 1,133,239,020.75 728,524,141.54
Other Explanations:
None
Construction in Progress
(1).Status of Construction in Progress
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Impairment Impairment
Items
Book Balance Reser Book Value Book Balance Reser Book Value
ves ves
Tongliao Meihua West Area
Technological Renovation Project
Tongliao Meihua East Area
Technological Renovation Project
Technological Upgrade Project of
Xinjiang Meihua
Technological Upgrade Project of
Jilin Meihua
Technological Upgrade Project of
Tongliao Jianlong
Reconstruction Project of the
Company
Phase V 600,000-ton Annual
L-Lysine Project in Jilin
West Zone of Tongliao
Expansion Project of the Heating
Station in the West Zone of 52,244,459.43 52,244,459.43 88,996,489.23 88,996,489.23
Tongliao
Process Optimization Project for
Xanthan Gum in Xinjiang
Project for L-Isoleucine in Xinjiang
Reconstruction Project in Xinjiang 24,967,002.47 24,967,002.47
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Tongliao Jianlong Sulfuric Acid
Production Expansion and 18,922.73 18,922.73
Renovation Project
Total 1,095,783,702.50 1,095,783,702.50 714,122,720.14 714,122,720.14
(2).Changes in Significant Construction in Progress for the Current Period
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Other Percentage
Including: Interest
Decreased of
Increased Amount Amount Transferred Accumulated Amount of Capitalization
Beginning Amounts Cumulative Engineering Sources of
Project Name Budget Amount for the Current to Fixed Assets for Ending Balance Amount of Capitalized Rate for the
Balance for the Investment Progress Fund
Period the Current Period Capitalized Interest Interest for the Current
Current in Budget
Current Period Period (%)
Period (%)
Phase V 600,000-ton
Annual L-Lysine 1,832,070,000.00 155,468,504.85 803,609,003.34 1,245,825.41 957,831,682.78 52.35 52.35 2,827,271.51 2,394,410.06 2.36 Self-funded
Project in Jilin
Project in the West 1,061,347,600.00 223,215,378.27 43,170,687.45 262,775,572.14 3,610,493.58 84.90 84.90 8,629,820.21 1,947,324.08 2.60 Self-funded
Zone of Tongliao
Project of the
Heating Station in
the West Zone of
Tongliao
Process
Optimization Project
for Xanthan Gum in
Xinjiang
Technological
Upgrade Project for 156,558,000.00 145,720,675.85 9,787,741.67 150,055,348.71 5,453,068.81 99.33 99.33 Self-funded
L-Isoleucine in
Xinjiang
Tongliao Jianlong
Sulfuric Acid
Production 248,080,000 18,922.73 18,922.73 0.01 0.01 Self-funded
Expansion and
Renovation Project
Total 3,893,151,500.00 620,989,585.49 943,837,287.34 518,209,633.26 1,046,617,239.57 / / 11,457,091.72 4,341,734.14 / /
(3).Provisions for Impairment Reserves for Construction in Progress for the Current Period
□Applicable Not Applicable
(4).Impairment Testing of Construction in Progress
□Applicable Not Applicable
Other Explanations
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Engineering Materials
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Engineering Materials 37,455,318.25 37,455,318.25 14,401,421.40 14,401,421.40
Total 37,455,318.25 37,455,318.25 14,401,421.40 14,401,421.40
Other Explanations:
None
(1). Productive biological assets measured at cost
□Applicable Not Applicable
(2). Impairment testing of productive biological assets measured at cost
□Applicable Not Applicable
(3). Productive biological assets measured at fair value
□Applicable Not Applicable
Other Explanations
□Applicable Not Applicable
(1).Status of Oil and Gas Assets
□Applicable Not Applicable
(2).Impairment Testing of Oil and Gas Assets
□Applicable Not Applicable
Other Explanations:
None
(1).Status of Right-of-Use Assets
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Housing and Structures Transportation Tools Total
I. Original Book Value
Current Period
Lease
Current Period
Expiration of Lease 1,543,893.80 1,543,893.80
Others 11,137.46 11,137.46
II. Accumulated Depreciation
Current Period
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1) Provision 1,552,528.42 252,125.40 1,804,653.82
Current Period
(1) Disposal
Expiration of Lease 900,604.65 900,604.65
III. Impairment Reserves
Current Period
(1) Provision
Current Period
(1) Disposal
IV. Book Value
the Period
Beginning of the Period
(2).Impairment Testing of Right-of-Use Assets
□Applicable Not Applicable
Other Explanations:
None
(1). Status of Intangible Assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Patent Non-patent License for Patent
Items Land Use Right Software Total
Right Technology Usage
I. Original Book Value
the Current Period
(1) Acquisition 869,399.01 869,399.01
(2) Internal Research
and Development
(3) Increase from
Enterprise Merger
the Current Period
(1) Disposal 55,555.54 55,555.54
II. Accumulated Amortization
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
the Current Period
(1) Provision 15,569,491.86 1,793,443.59 5,161,142.95 22,524,078.40
the Current Period
(1) Disposal 55,555.54 55,555.54
III. Impairment Reserves
the Current Period
(1) Provision
the Current Period
(1) Disposal
IV. Book Value
of the Period
Beginning of the Period
The ratio of intangible assets generated from the internal research and development by the Company to
the balance of intangible assets at the end of the current period is zero.
(2). Data Resources Recognized as Intangible Assets
□Applicable Not Applicable
(3). Status of Land Use Rights without Property Ownership Certificates
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Book Value Reason for Pending Title Certificate
Land Use Right 101,834.06 In process
Total 101,834.06
(4). Impairment Testing of Intangible Assets
□Applicable Not Applicable
Other Explanations:
Applicable □Not Applicable
The carrying amount of intangible assets pledged by the Company at the end of the reporting period
was RMB 26,785,445.73. For details, please refer to Section 16 – Commitments and Contingencies (1).
(1).Original Book Value of Goodwill
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Name of the Invested Unit or Beginning Balance Increases during the Decreases during Ending Balance
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Matters Generating Goodwill Current Period the Current Period
Arising from
Disposal
Enterprise Merger
Tongliao Jianlong 11,788,911.79 11,788,911.79
Total 11,788,911.79 11,788,911.79
(2).Goodwill Impairment Reserves
□Applicable Not Applicable
(3).Relevant Information of Asset Portfolio or Asset Portfolios Where Goodwill Belongs to
□Applicable Not Applicable
Changes in Asset Portfolio or Asset Portfolios
□Applicable Not Applicable
Other Explanations
□Applicable Not Applicable
(4).Specific Methods for Determining Recoverable Amount
Recoverable amount is determined as the net amount after deducting disposal costs from fair value
□Applicable Not Applicable
Recoverable amount is determined based on the present value of expected future cash flows
□Applicable Not Applicable
Reasons for differences between the foregoing information and the information used in impairment tests
in previous years or external information
□Applicable Not Applicable
Reasons for differences between the information used in impairment tests in previous years and the
actual situation in the current year
□Applicable Not Applicable
(5).Performance Commitments and Corresponding Goodwill Impairment
When the goodwill was formed, there are performance commitments and the reporting period or the
preceding reporting period was within the performance commitment period.
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increased Amortized
Beginning Other Decreased
Items Amount for the Amount for the Ending Balance
Balance Amounts
Current Period Current Period
Site Lease Fees 27,323,514.71 152,201.83 765,374.92 26,710,341.62
Housing Subsidies 53,853,880.45 5,420,000.00 4,720,084.92 581,482.57 53,972,312.96
Consumption of
Production 38,163,082.19 22,698,863.40 12,091,348.87 48,770,596.72
Materials
Staff Rewards 149,999.98 69,999.97 4,500.00 75,500.01
Leasehold
Improvements
Total 122,538,549.51 28,271,065.23 18,080,269.41 585,982.57 132,143,362.76
Other Explanations:
None
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1).Unoffset Deferred Income Tax Assets
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Deductible Deductible
Items Deferred Income Deferred Income
Temporary Temporary
Tax Assets Tax Assets
Differences Differences
Asset Impairment Reserves 135,524,079.93 20,455,129.51 131,809,560.13 19,904,849.89
Unrealized Profits from
Internal Transactions
Deductible Losses 54,182,252.45 13,545,563.10
Government Grants 318,666,781.82 47,800,017.27 322,722,660.36 48,408,399.05
Difference in Depreciation
Periods
Fair Value Changes 178,465,350.00 26,769,802.49 83,836,954.75 14,488,666.67
Lease Liabilities 2,419,378.19 362,906.73 2,367,429.23 355,114.38
Compensation 111,520,227.09 16,728,034.06 83,202,619.91 12,480,392.99
Total 824,011,811.32 129,145,474.37 665,119,166.19 101,814,807.93
(2).Unoffset Deferred Income Tax Liabilities
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Taxable Taxable
Items Deferred Income Deferred Income
Temporary Temporary
Tax Liabilities Tax Liabilities
Differences Differences
Increment in valuation of assets from
enterprise merger not under the same
control
Changes in Fair Value of Other Debt
Investments
Changes in Fair Value of Other Equity
Investments
Fair Value Changes 11,691,561.64 1,831,699.42 2,096,301.37 314,445.21
Difference in Depreciation Periods 118,203,758.63 19,276,389.13 126,857,856.85 20,662,571.49
Unearned Interest
Right-of-Use Assets 2,947,198.20 442,079.73 4,054,744.98 608,211.75
Total 132,842,518.47 21,550,168.28 133,008,903.20 21,585,228.45
(3).Deferred Income Tax Assets or Liabilities Presented as Net Amounts After Offset
□Applicable Not Applicable
(4).Details of Unrecognized Deferred Income Tax Assets
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Deductible Temporary Differences
Deductible Losses 34,646,964.56 31,196,481.29
Bad Debt Reserves 16,326,580.21 22,838,960.09
Fixed Asset Impairment Reserves 10,870,031.95 2,085,138.47
Total 61,843,576.72 56,120,579.85
(5).Deductible losses of unrecognized deferred income tax assets will expire in the following years
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Year Ending Balance Beginning Balance Remarks
Total 34,646,964.56 31,196,481.29 /
Other Explanations:
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Cost of Contract
Acquisition
Cost of Contract
Performance
Cost of
Receivable
Returns
Contract Assets
Prepaid
Equipment and
Engineering
Payments
Large-
denomination
Certificates of
Deposit
Time deposits 50,229,930.56 50,229,930.56
Less:
Non-current
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
assets due within
one year
Total 762,531,174.19 762,531,174.19 782,574,484.98 782,574,484.98
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
End of the Period Beginning of the Period
Items Restriction Restricted Restriction Restricted
Book Balance Book Value Book Balance Book Value
Type Situation Type Situation
Refer to 1
Refer to 1 in
Monetary Funds 190,704,256.91 190,704,256.91 Others 428,628,697.39 428,628,697.39 Others in Section
Section VII
VII
Notes Receivable
Inventories
Including: Data
Resources
Refer to 2 in Refer to 2 in
Fixed Assets 835,380,494.73 373,067,063.83 Mortgage 835,206,080.41 393,081,094.85 Mortgage
Section XVI Section XVI
Refer to 2 in Refer to 2 in
Intangible Assets 36,898,603.23 26,785,445.73 Mortgage 36,898,603.23 27,154,158.71 Mortgage
Section XVI Section XVI
Including: Data
Resources
Total 1,062,983,354.87 590,556,766.47 / / 1,300,733,381.03 848,863,950.95 / /
Other Explanations:
None
(1). Classification of Short-Term Borrowings
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Pledged Borrowings
Mortgaged Borrowings
Guaranteed Borrowings 350,000,000.00 945,000,000.00
Credit Borrowings 691,000,000.00 290,000,000.00
Discounted Bills Not Yet Matured 545,736,271.50 499,371,350.50
Unmatured Interest Payable 102,641.68 461,280.56
Total 1,586,838,913.18 1,734,832,631.06
Explanations of Categories of Short-Term Borrowings:
(1) Details of Guaranteed Borrowings
Lending Institution Ending Balance Guarantor
Business Department of Tibet Branch, Bank of China Tongliao Meihua, Xinjiang
Limited Meihua
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Business Department of Tibet Branch, Bank of China Tongliao Meihua, Xinjiang
Limited Meihua
Business Department of Tibet Branch, Bank of China Tongliao Meihua, Xinjiang
Limited Meihua
Total 350,000,000.00
(2) Details of Credit Borrowings
Lending Institution Ending Balance Term of Borrowing
Langfang Development Zone Sub-branch of China
Construction Bank Corporation
Langfang Development Zone Sub-branch of China
Construction Bank Corporation
Langfang Development Zone Sub-branch of China
Construction Bank Corporation
Langfang Development Zone Sub-branch of China
Construction Bank Corporation
Langfang Development Zone Sub-branch, Bank of
China Limited
Langfang Development Zone Sub-branch, Bank of
China Limited
Langfang Development Zone Sub-branch, Bank of
China Limited
Langfang Development Zone Sub-branch, Bank of
China Limited
Xinjiang Wujiaqu Branch, Bank of China Limited 1,000,000.00 2025/3/19-2026/3/19
Langfang Branch of China Merchants Bank Co., Ltd. 70,000,000.00 2024/10/25-2025/7/24
Total 691,000,000.00
(2). Status of Overdue and Unpaid Short-Term Borrowings
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Derivative Financial Liabilities 297,500.00
Total 297,500.00
Other Explanations:
None
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Types Ending Balance Beginning Balance
Commercial Acceptance Bills
Bank Acceptance Bills 1,423,949,868.69 1,416,217,579.96
Total 1,423,949,868.69 1,416,217,579.96
The total amount of overdue and unpaid notes payable at the end of the period is RMB 0. The reason for
non-payment upon maturity is: None
(1). Presentation of Accounts Payable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Payments for Engineering and
Equipment
Provisional Estimation of Payments 165,048,483.01 315,606,671.86
Payments Payable 519,958,827.77 307,171,751.69
Other Payments 317,492,838.09 270,827,000.58
Total 1,576,860,025.02 1,441,533,026.72
(2). Significant Accounts Payable with an Aging Exceeding 1 Year or Overdue
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Reasons for Being Unpaid or Carried
Items Ending Balance
Forward
Hangzhou Fortune Gas Cryogenic Group
Co., Ltd.
Inner Mongolia Huomei Yicheng Energy Unable to Contact Due to
Co., Ltd. Bankruptcy
Weihai Yuanhang Technology Co., Ltd. 3,975,600.00 Not Yet Due for Settlement
Shenyang Turbine Machinery Co., Ltd. 3,612,000.00 Not Yet Due for Settlement
Xinjiang Huijia Real Estate Co., Ltd. 3,479,843.17 Not Yet Due for Settlement
Shanghai Samusen Valve Co., Ltd. 3,159,455.65 Not Yet Due for Settlement
Total 22,226,452.32 /
Other Explanations:
Applicable □ Not Applicable
At the end of the period, there were no accounts payable to shareholder units holding 5% or more
of the Company’s voting shares and other related parties in the accounts payable.
(1). Presentation of Advance Receipts
□Applicable Not Applicable
(2). Significant Advance Receipts with an Aging Exceeding 1 Year
□Applicable Not Applicable
(3). Amount of and Reason for Significant Changes in Book Value During the Reporting Period
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1).Status of Contract Liabilities
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Advance Payments for Goods 656,660,453.80 916,515,321.35
Total 656,660,453.80 916,515,321.35
(2).Significant Contract Liabilities with an Aging Exceeding 1 Year
□Applicable Not Applicable
(3).Amount of and Reason for Significant Changes in Book Value During the Reporting Period
□Applicable Not Applicable
Other Explanations:
Applicable □ Not Applicable
At the end of the period, there were no advance receipts from shareholder units holding 5% or more
of the Company’s voting shares in the contract liabilities. Please refer to (6) in Section XIV - Related
Parties and Related Transactions for details of advance receipts from other related parties.
(1).Presentation of Employee Compensation Payable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during Decrease during
Beginning
Items the Current the Current Ending Balance
Balance
Period Period
I. Short-Term Compensation 309,884,063.87 864,357,327.05 837,087,196.43 337,154,194.49
II. Post-employment Benefits -
Defined Contribution Plans
III. Termination Benefits
IV. Other Benefits Due Within One
Year
Total 310,133,688.99 928,949,739.53 901,640,608.91 337,442,819.61
(2).Presentation of Short-Term Compensation
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during Decrease during
Beginning
Items the Current the Current Ending Balance
Balance
Period Period
I. Salaries, Bonuses, Allowances,
and Subsidies
II. Employee Welfare Expenses 6,299,154.04 6,299,154.04
III. Social Insurance Premiums 36,111,936.79 36,093,936.79 18,000.00
Including: Medical Insurance
Premiums
Work Injury Insurance
Premiums
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Maternity Insurance
Premiums
IV. Housing Provident Fund 7,031,248.10 7,029,484.01 1,764.09
V. Union Funds and Employee
Education Funds
VI. Short-Term Paid Absence
VII. Short-Term Profit-Sharing
Plans
Other short-term employee benefits 4,362,000.00 4,362,000.00
Total 309,884,063.87 864,357,327.05 837,087,196.43 337,154,194.49
(3).Presentation of Defined Contribution Plans
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Decrease during
Items Beginning Balance Ending Balance
Current Period the Current Period
Premiums
Contributions
Total 249,625.12 64,592,412.48 64,553,412.48 288,625.12
Other Explanations:
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Value-added Tax 22,152,194.53 25,599,120.74
Consumption Tax
Business Tax
Corporate Income Tax 196,243,722.76 223,208,443.42
Personal Income Tax 2,733,779.02 4,141,936.00
City Maintenance and Construction
Tax
Environmental Protection Tax 1,339,380.41 1,785,754.86
Education Surcharge 3,402,220.35 2,091,100.43
Water Resource Tax 14,307,451.72 13,923,721.05
Stamp Duty 5,782,862.69 6,261,699.28
Others 422,826.95 473,619.30
Total 250,775,388.20 280,212,685.60
Other Explanations:
None
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1).Presentation of Items
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Interest Payable
Dividend Payable 405,000.00 409,445.58
Other Payables 242,135,793.08 447,705,692.40
Total 242,540,793.08 448,115,137.98
(2).Interest Payable
□Applicable Not Applicable
(3).Dividends Payable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Common Stock Dividends 405,000.00 409,445.58
Preferred Shares/Perpetual Bond Dividends Classified
as Equity Instruments
Preferred Shares/Perpetual Bond Dividend - XXX
Total 405,000.00 409,445.58
Other explanations: For significant dividends payable overdue for more than 1 year, the reasons for
non-payment should be disclosed:
The unpaid dividends pertain to the Employee Stock Ownership Plan.
(4).Other Payables
Presentation of Other Payables by Nature of Payments
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Accrued Expenses 131,667,195.01 115,315,362.37
Guarantee Deposits 91,601,782.99 84,940,254.59
Expenses for Litigation Settlement 233,000,000.00
Others 18,866,815.08 14,450,075.44
Total 242,135,793.08 447,705,692.40
Significant other payables with an aging exceeding 1 year or overdue
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Reasons for Being Unpaid or Carried
Items Ending Balance
Forward
Khorchin District Tax Bureau, Tongliao City,
State Taxation Administration
Disabled Persons’ Federation of the 6th
Division, Xinjiang Production and 6,952,578.01 Not Yet Due for Payment
Construction Corps
Total 21,515,056.45 /
Other Explanations:
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Applicable □ Not Applicable
At the end of the period, there were no accounts payable to shareholder units holding 5% or more
of the Company’s voting shares or other related parties in the other payables.
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Long-term Borrowings Due Within 1
Year
Bonds Payable Due Within 1 Year
Long-Term Payables Due Within 1 52,520,701.81
Year
Lease Liabilities Due Within 1 Year 3,434,783.77 3,538,091.97
Total 710,617,924.83 802,346,793.78
Other Explanations:
None
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Short-Term Bonds Payable
Return Refunds Payable
Long-tern Loan Interest Repayable
Within One Year
Sales Tax to be Carried Forward 53,477,355.53 83,774,472.00
Notes Endorsed But Not Yet
Derecognized
Total 61,495,237.41 88,785,123.74
Increase/Decrease in Short-Term Bonds Payable:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
(1). Classification of Long-Term Borrowings
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Pledged Borrowings
Mortgaged Borrowings 300,000,000.00 300,000,000.00
Guaranteed Borrowings 1,144,155,654.13 1,303,592,044.83
Credit Borrowings 968,579,999.99 490,790,000.00
Less: Long-Term Borrowings Due
Within One Year
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Total 1,732,115,654.12 1,348,094,044.83
Explanation of Classification of Long-Term Borrowings:
(1) Details of Credit Borrowings
Lending Institution Ending Balance Term of Borrowing
Songyuan Branch, Bank of Communications Co., Ltd. 29,000,000.00 2024/4/23-2027/4/23
Songyuan Branch, Bank of Communications Co., Ltd. 34,000,000.00 2024/6/20-2027/6/17
Songyuan Branch, Bank of Communications Co., Ltd. 44,980,000.00 2024/8/20-2027/8/20
Shengfang Sub-branch of Bazhou, Agricultural Bank of China
Limited
Langfang Branch, Bank of Communications Co., Ltd. 39,800,000.00 2024/9/27-2027/9/24
Langfang Branch, Bank of Communications Co., Ltd. 59,800,000.00 2024/10/22-2027/10/21
Business Department of Baicheng Branch, China Construction Bank
Corporation
Business Department of Baicheng Branch, China Construction Bank
Corporation
Business Department of Baicheng Branch, China Construction Bank
Corporation
Business Department of Tibet Branch, Bank of China Limited 50,000,000.00 2025/3/28-2028/3/28
Business Department of Tibet Branch, Bank of China Limited 100,000,000.00 2025/4/22-2028/4/22
Langfang Branch, Hua Xia Bank Co. Ltd. 110,000,000.00 2025/3/28-2028/3/27
Xinjiang Wujiaqu Branch, Bank of China Limited 8,999,999.99 2025/2/10-2028/2/10
Xinjiang Wujiaqu Branch, Bank of China Limited 20,000,000.00 2025/2/13-2028/2/10
Xinjiang Wujiaqu Branch, Bank of China Limited 20,000,000.00 2025/2/14-2028/2/10
Xinjiang Wujiaqu Branch, Bank of China Limited 10,000,000.00 2025/2/17-2028/2/10
Xinjiang Wujiaqu Branch, Bank of China Limited 40,000,000.00 2025/2/20-2028/2/10
Xinjiang Wujiaqu Branch, Bank of China Limited 10,000,000.00 2025/3/11-2028/2/10
Xinjiang Wujiaqu Branch, Bank of China Limited 1,000,000.00 2025/3/19-2028/3/19
Xinjiang Wujiaqu Branch, Bank of China Limited 40,000,000.00 2025/4/17-2028/3/19
Xinjiang Wujiaqu Branch, Bank of China Limited 30,000,000.00 2025/4/22-2028/3/19
Xinjiang Wujiaqu Branch, Bank of China Limited 29,000,000.00 2025/4/27-2028/3/19
Langfang Development Zone Branch, Bank of China Limited 10,000,000.00 2025/4/27-2028/4/10
Bazhou Branch, Industrial and Commercial Bank of China Limited 2,500,000.00 2025/5/16-2028/4/22
Less: Long-Term Borrowings Due Within One Year 29,620,000.00
Total 938,959,999.99
(2) Details of Mortgaged Borrowings
Lending Institution Ending Balance Collateral Term of Borrowing
Hebei Branch, Export-Import Xinjiang Meihua Land
Bank of China Property as collateral
Less: Long-Term Borrowings
Due Within One Year
Total 0
(3) Details of Guaranteed Borrowings
Guaranteed
Lending Institution Ending Balance Guarantor Term of Borrowing
Party
Business Department of Tibet Branch, Bank of 176,000,000.00 Tongliao The 2023/3/31-2026/3/31
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
China Limited Meihua, Company
Xinjiang
Meihua
Tongliao
Business Department of Tibet Branch, Bank of Meihua, The
China Limited Xinjiang Company
Meihua
Tongliao
Business Department of Tibet Branch, Bank of Meihua, The
China Limited Xinjiang Company
Meihua
Tongliao Branch, China Construction Bank The Tongliao
Corporation Company Meihua
Tongliao Branch, China Construction Bank The Tongliao
Corporation Company Meihua
Tongliao Branch, China Construction Bank The Tongliao
Corporation Company Meihua
Tongliao Branch, China Construction Bank The Tongliao
Corporation Company Meihua
Tongliao Branch, China Construction Bank The Tongliao
Corporation Company Meihua
Tongliao Jianguo Road Sub-branch, China The Tongliao
Construction Bank Corporation Company Meihua
Business Department of Tongliao Branch, China The Tongliao
Construction Bank Corporation Company Meihua
Business Department of Tongliao Branch, China The Tongliao
Construction Bank Corporation Company Meihua
Tongliao Jianguo Road Sub-branch, China The Tongliao
Construction Bank Corporation Company Meihua
Business Department of Tongliao Branch, China The Tongliao
Construction Bank Corporation Company Meihua
Business Department of Tongliao Branch, China The Tongliao
Construction Bank Corporation Company Meihua
Business Department of Tongliao Branch, China The Tongliao
Construction Bank Corporation Company Meihua
Business Department of Tongliao Branch, China The Tongliao
Construction Bank Corporation Company Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Huihai Sub-branch, Agricultural Bank of China Xinjiang Tongliao
Limited Meihua Meihua
Wujiaqu Sub-branch, China Construction Bank The Xinjiang
Corporation Company Meihua
Wujiaqu Sub-branch, China Construction Bank The Xinjiang
Corporation Company Meihua
Less: Long-term Borrowings Due Within One
Year
Total 793,155,654.13
Other Explanations
□Applicable Not Applicable
(1).Bonds Payable
□Applicable Not Applicable
(2).Specific Status of Bonds Payable: (Excluding other financial instruments such as preferred
shares and perpetual bonds classified as financial liabilities)
□Applicable Not Applicable
(3).Explanation of Convertible Corporate Bonds
□Applicable Not Applicable
Accounting Treatment of and Judgement Basis for Rights to Convert Shares
□Applicable Not Applicable
(4).Explanation of Other Financial Instruments Classified as Financial Liabilities
Overview of other financial instruments such as preferred shares and perpetual bonds outstanding at the
end of the period
□Applicable Not Applicable
Table of Changes in Financial Instruments such as Preferred Shares and Perpetual Bonds Outstanding at
the End of the Period
□Applicable Not Applicable
Explanation of the Basis for Classifying Other Financial Instruments as Financial Liabilities
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Within 1 year 3,596,021.77 3,782,304.67
Less: Unrecognized Financing Costs 246,151.00 372,835.01
Less: Lease Liabilities Due Within One
Year
Total 1,557,058.76 1,985,140.84
Other Explanations:
None
Presentation of Items
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Long-term Payables 10,500,000.00 10,500,000.00
Special Payables
Total 10,500,000.00 10,500,000.00
Other Explanations:
None
Long-term Payables
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Guarantee Deposits 10,500,000.00 10,500,000.00
Patent License Rights 26,563,141.06 52,520,701.81
Less: Long-term Payables Due Within
One Year
Total 10,500,000.00 10,500,000.00
Other Explanations:
None
Special Payables
□Applicable Not Applicable
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance Reasons for Formation
Guarantees Provided to
External Parties
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Pending Litigation 32,438,161.92
for details
Product Quality Assurance
Restructuring Obligations
Loss Contracts to be
Executed
Return Refunds Payable
Others
Total 32,948,103.32 32,438,161.92 /
Other Explanations: Including related significant assumptions for significant estimated liabilities.
Estimation Explanation:
None
Status of Deferred Revenue
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during Decrease during
Beginning Reasons for
Items the Current the Current Ending Balance
Balance Formation
Period Period
Asset-related Refer to 2 in
Government 381,020,645.51 17,410,000.00 22,920,234.90 375,510,410.61 Section XI for
Grants details
Total 381,020,645.51 17,410,000.00 22,920,234.90 375,510,410.61 /
Other Explanations:
Applicable □ Not Applicable
Refer to 2 in Section XI for details of government grants for the Company.
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase/Decrease (+, -) in the Changes During
the Current Period
Capital
Reserve
Beginning Balance New Stock Ending Balance
s Subtot
Shares Divide Others
Convers al
Issued nd
ion into
Shares
Total Quantity 2,852,788,750.00
of Shares
Other Explanations:
Refer to Note 1 - Basic Information of the Company for details of changes in share capital.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1).Overview of other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the period
□Applicable Not Applicable
(2).Table of Changes in Financial Instruments such as Preferred Shares and Perpetual Bonds
Outstanding at the End of the Period
□Applicable Not Applicable
Explanation of increase/decrease in other equity instruments during the current period, reasons for such
changes and basis for relevant accounting treatments:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Decrease during the
Items Beginning Balance Ending Balance
Current Period Current Period
Capital Premiums (Share
Premiums)
Other Capital Reserves
Total 263,154,867.05 263,154,867.05
Other Explanations: Including explanation of increase/decrease in the current period and reasons for
such changes:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Decrease during the
Items Beginning Balance Ending Balance
Current Period Current Period
Share Repurchase for
Capital Decrease
Total 287,771,455.80 64,294,882.98 352,066,338.78
Other Explanations: Including explanation of increase/decrease in the current period and reasons for
such changes:
MeiHua Holdings Group Co., Ltd. (hereinafter referred to as the “Company”) held the 13th meeting
of the 10th Board of Directors and the 2nd Extraordinary General Meeting of Shareholders in 2024 on
September 23 and October 11, respectively. At these meetings, the proposal on the repurchase of the
Company’s shares through centralized bidding was reviewed and approved. On October 12, 2024, the
Company disclosed the “Repurchase Report on the Share Repurchase through Centralized Bidding of
MeiHua Holdings Group Co., Ltd.” The total repurchase amount was set to be no less than RMB 300
million and no more than RMB 500 million, with the repurchased shares intended for cancellation to
reduce registered capital. By the end of June 2025, the Company had repurchased 35.7084 million shares
through centralized bidding, representing 1.25% of the current total share capital (2,852,788,750 shares),
with a total payment of RMB 352.0663 million.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amounts Incurred during the Current Period
Less: Amount
Less: Amount
Recorded in
Recorded in
Other
Other
Comprehensive
Comprehensive Attributable
Amounts Incurred Income in Attributable to
Beginning Income in to the
Items during the Current Previous Less: Income the Parent Ending Balance
Balance Previous Minority
Period Before Periods and Tax Expenses Company After
Periods and Shareholders
Income Tax Transferred to Tax
Transferred to After Tax
Retained
the Profit or
Earnings for
Loss for the
the Current
Current Period
Period
I. Other Comprehensive Income That Cannot
-54,999,862.00 -113,759,630.00 -17,063,944.50 -96,695,685.50 -151,695,547.50
Be Reclassified to Profit or Loss
Including: Amount of Changes in
Remeasured Defined Benefit Plans
Other Comprehensive Income That Cannot
Be Reclassified to Profit or Loss Under
Equity Method
Changes in Fair Value of Other Equity
-54,999,862.00 -113,759,630.00 -17,063,944.50 -96,695,685.50 -151,695,547.50
Instrument Investments
Changes in Fair Value of Enterprises’
Own Credit Risk
II. Other Comprehensive Income to Be
-5,099.46 -1,970,677.19 -1,970,677.19 -1,975,776.65
Reclassified to Profit or Loss
Including: Other Comprehensive Income
That Can Be Transferred to Profit or Loss
Under Equity Method
Changes in Fair Value of Other Debt
Investments
Amount of Financial Assets Reclassified
and Recorded in Other Comprehensive
Income
Credit Impairment Reserves for Other
Debt Investments
Cash Flow Hedging Reserves
Converted Differences in Foreign Currency
-5,099.46 -1,970,677.19 -1,970,677.19 -1,975,776.65
Financial Statements
Total Other Comprehensive Income -55,004,961.46 -115,730,307.19 -17,063,944.50 -98,666,362.69 -153,671,324.15
Other explanations, including the adjustments to the transfer of effective portion of cash flow hedge
profit or loss to initially recognized amount of hedged items:
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Decrease during the
Items Beginning Balance Ending Balance
Current Period Current Period
Work Safety
Expenses
Total 4,743,615.67 30,484,436.74 30,296,569.38 4,931,483.03
Other explanations, including explanation of increase/decrease for the current period and reasons for
such changes:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Decrease during the
Items Beginning Balance Ending Balance
Current Period Current Period
Statutory Surplus
Reserves
Discretionary Surplus
Reserves
Reserve Funds
Enterprise Expand
Funds
Others
Total 1,426,394,375.00 1,426,394,375.00
Explanations of surplus reserves, including explanation of increase/decrease for the current period and
reasons for such changes:
The increase in the statutory surplus reserve for the current period was made at 10% of the parent
company’s net profit, in accordance with applicable laws. In accordance with the Company Law, no
further appropriation is required once the statutory surplus reserve has reached 50% or more of the
company’s registered capital.
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Items For the Current Period For the Previous Period
Undistributed Profits at the End of the Previous Period Before 10,370,640,110.47
Adjustment
Total Amount of Undistributed Profits at the Beginning of the
Adjustment (Increase +, decrease－)
Undistributed Profits at the Beginning of the Post-adjustment 10,370,640,110.47 9,427,722,131.86
Plus: Net Profit Attributable to the Owners of the Parent
Company for the Current Period
Minus: Withdrawal of Statutory Surplus Reserves 100,099,930.70
Withdrawal of Discretionary Surplus Reserves
Withdrawal of General Risk Reserves
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Ordinary Share Dividends Payable 1,199,987,325.29 1,697,409,306.25
Ordinary Share Dividends Transferred to Share Capital
Retained Earnings from the Carry-forward of Other
Comprehensive Income
Undistributed Profits at the End of the Period 10,938,602,902.07 10,370,640,110.47
Details of Undistributed Profits at the Beginning of the Adjustment:
new regulations, the amount of undistributed profits at the beginning of the impact period is RMB 0.
impact period is RMB 0.
of the impact period is RMB 0.
profits at the beginning of the impact period is RMB 0.
period is RMB 0.
(1).Status of Operating Revenues and Operating Costs
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Period Amount Incurred during the Previous Period
Items
Revenues Costs Revenues Costs
Main Business 12,201,006,425.75 9,372,143,881.60 12,541,129,888.84 10,120,038,107.64
Other Business 79,444,177.78 61,209,358.49 101,588,164.53 57,168,155.50
Total 12,280,450,603.53 9,433,353,240.09 12,642,718,053.37 10,177,206,263.13
(2).Decomposition Information of Operating Revenues and Operating Costs
□Applicable Not Applicable
Other Explanations
□Applicable Not Applicable
(3).Explanation of Performance Obligations
□Applicable Not Applicable
(4).Explanation of Allocation to Remaining Performance Obligations
□Applicable Not Applicable
(5).Significant Changes in Contracts or Significant Adjustments to Transaction Prices
□Applicable Not Applicable
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Consumption Tax
Business Tax
Urban Maintenance and Construction
Tax
Education Surcharge 13,714,358.88 12,608,350.15
Resource Tax 24,961,004.89 25,467,799.91
Property Tax 26,906,712.05 25,612,021.38
Land Use Tax 18,300,652.02 17,294,542.61
Vehicle and Vessel Usage Tax 34,243.33 34,730.00
Stamp Duty 11,871,317.19 12,179,392.56
Environmental Protection Tax 3,163,481.95 4,099,324.55
Others 2,450,685.40 2,870,883.67
Total 119,066,571.04 115,408,867.54
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Amount Incurred during the
Items
Current Period Previous Period
Transportation Expenses 81,508,805.04 94,820,443.36
Company Expenses 12,024,503.62 22,406,533.76
Promotion Expenses 10,568,077.77 15,468,085.47
Employee Expenses 33,055,518.95 48,248,806.42
Depreciation and Amortization 8,513,752.19 7,511,487.71
Warehousing Expenses 22,090,134.45 15,998,110.12
Total 167,760,792.02 204,453,466.84
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Amount Incurred during the
Items
Current Period Previous Period
Company Expenses 83,514,810.05 103,378,482.38
Employee Expenses 337,748,536.68 367,843,855.43
Depreciation and Amortization 48,170,214.84 83,284,028.70
Total 469,433,561.57000 554,506,366.51
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Amount Incurred during the Amount Incurred during the
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Current Period Previous Period
Employee Expenses 28,650,440.05 26,188,706.04
Depreciation Expenses 12,225,514.37 10,589,413.50
Material Consumption 136,825,441.33 126,606,320.24
Other Expenses 22,257,302.18 17,094,794.96
Total 199,958,697.93 180,479,234.74
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Amount Incurred during the
Items
Current Period Previous Period
Interest Expenses 27,955,159.53 46,859,883.13
Less: Interest Income -26,389,977.12 -59,735,278.47
Exchange Profits and Losses -28,153,343.43 -68,562,884.90
Bank Charges and Other Expenses 5,927,841.39 6,201,735.30
Total -20,660,319.63 -75,236,544.94
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Amount Incurred during the
Classification by Nature
Current Period Previous Period
Government Subsidies 137,644,467.14 154,414,843.86
Refunds of Personal Income Tax Handling Fees 5,404,964.32 3,103,558.18
Additional Deduction of Value-added Tax 5,496,884.87 16,902,462.58
Value-added Tax Exemption for Retired Veterans 12,000.00
Total 148,546,316.33 174,432,864.62
Other Explanations:
Refer to (3) in Section XI for details of government subsidies for the Company
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during Amount Incurred during
Items
the Current Period the Previous Period
Investment Income from Long-term Equity Investment
-923,353.98 -2,220,562.67
Accounted for by the Equity Method
Investment Income from the Disposal of Long-term Equity
Investments
Investment Income from Financial Assets Held for Trading
during the Holding Period
Dividend Income from Other Equity Instrument Investments
during the Holding Period
Dividend Income from Debt Investments during the Holding 787,500.00 787,500.00
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Period
Dividend Income from other Debt Investments during the
Holding Period
Investment Income from the Disposal of Financial Assets Held
for Trading
Investment Income from the Disposal of Other Equity
Instrument Investments
Investment Income from the Disposal of Debt Investments
Investment Income from the Disposal of Other Debt
-111,579.15 417,944.43
Investments
Debt Restructuring Gains
Total 29,250,766.79 14,671,408.04
Other Explanations:
None
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during Amount Incurred during
Sources of Gains from Changes in Fair Value
the Current Period the Previous Period
Financial Assets Held for Trading 16,016,844.67 1,959,926.94
Including: Gains from Changes in Fair Value Arising from
Derivative Financial Instruments
Financial Liabilities Held for Trading
Investment Properties Measured at Fair Value
Total 16,016,844.67 1,959,926.94
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Amount Incurred during the
Items
Current Period Previous Period
Bad Debt Losses on Notes Receivable
Bad Debt Losses on Accounts Receivable
Bad Debt Losses on Other Receivables
Impairment Losses on Debt Investments
Impairment Losses on Other Debt Investments
Bad Debt Losses on Long-term Receivables
Financial Guarantee-related Impairment Losses
Bad Debt Losses -154,305.79 6,162,617.22
Total -154,305.79 6,162,617.22
Other Explanations:
None
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Amount Incurred during
Items
Current Period the Previous Period
I. Impairment Losses on Contract Assets
II. Inventory Write-down Losses and Contract Performance
-451,713.16 -1,987,907.91
Cost Impairment Losses
III. Impairment Losses on Long-term Equity Investments
IV. Impairment Losses on Investment Properties
V. Impairment Losses on Fixed Assets -8,784,893.48
VI. Impairment Losses on Engineering Materials
VII. Impairment Losses on Construction in Progress
VIII. Impairment Losses on Productive Biological Assets
IX. Impairment Losses on Oil and Gas Assets
X. Impairment Losses on Intangible Assets
XI. Impairment Losses on Goodwill
XII. Others
Total -9,236,606.64 -1,987,907.91
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Gains or Losses from Disposal of
Fixed Assets
Total 438,552.05 1,598,224.17
Other Explanations:
□Applicable Not Applicable
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amounts Recorded in
Amount Incurred during Amount Incurred during Non-recurring Profits or
Items
the Current Period the Previous Period Losses for the Current
Period
Total Gains from Disposal of
Non-current Assets
Including: Gains from Disposal of
Fixed Assets
Gains from Disposal of
Intangible Assets
Gain from Debt Restructuring
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Gains from Exchange of
Non-monetary Assets
Donation Receipts
Government Grants
Revenue from Default
Compensation
Revenue from Outstanding Unsolved
Matters
Insurance Claims 2,458,445.64 425,558.05 2,458,445.64
Income from Carbon Emission
Rights
Others 698,690.77 3,638,979.72 698,690.77
Total 3,157,136.41 66,373,971.73 3,157,136.41
Other Explanations:
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amounts Recorded in
Amount Incurred during Amount Incurred during Non-recurring Profits or
Items
the Current Period the Previous Period Losses for the Current
Period
Total Losses from Disposal of
Non-current Assets
Including: Losses from Disposal of
Fixed Assets
Losses from Disposal of
Intangible Assets
Loss on Debt Restructuring
Losses from Exchange of
Non-monetary Assets
External Donations 1,542,000.00 3,500,000.00 1,542,000.00
Settlement Costs of Litigation
Expenditure for Outstanding
Unsolved Matters
Inventory Losses
Losses from Destruction or
Scrapping of Non-current Assets
Default Losses
Others 2,273,751.00 4,115,578.86 2,273,751.00
Total 10,385,914.08 31,820,702.21 10,385,914.08
Other Explanations:
None
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1).Table of Income Tax Expenses
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Current Income Tax Expenses 331,522,515.48 220,205,381.91
Deferred Income Tax Expenses -10,301,782.12 23,261,630.32
Total 321,220,733.36 243,467,012.23
(2).Adjustment Process for Accounting Profits and Income Tax Expenses
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the
Items
Current Period
Total Profits 2,089,170,850.25
Income Tax Expenses Calculated at Statutory/Applicable Tax Rates 313,375,628.03
Impact of Different Tax Rates Applicable to Subsidiaries -2,667,624.55
Impact of Income Tax for the Previous Period Before Adjustment 2,533,408.41
Impact of Non-taxable Income 6,500,309.34
Impact of Non-deductible Costs, Expenses and Losses 1,329,989.76
Impact of Deductible Losses from Unrecognized Deferred Income Tax Assets for the
-757,466.68
Previous Periods Before Usage
Impact of Deductible Temporary Difference or Deductible Losses from Unrecognized
Deferred Income Tax Assets for the Current Period
Impact of Additional Deduction of Research and Development Expenses
Income Tax Expenses 321,220,733.36
Other Explanations:
□Applicable Not Applicable
Applicable □ Not Applicable
Refer to the notes for details.
(1).Cash Related to Operating Activities
Other received cash related to operating activities received
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Interest Income 26,411,390.20 74,346,823.05
Income from Government Grants 132,252,277.39 136,069,518.79
Others 32,489,729.74 92,538,814.94
Total 191,153,397.33 302,955,156.78
Explanation of other received cash related to operating activities:
None
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Other paid cash related to operating activities
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Expense Expenditure 308,047,443.89 295,017,103.90
Temporary Borrowings 681,175.17 601,247.58
Other Expenditures 244,715,431.93 28,635,950.27
Total 553,444,050.99 324,254,301.75
Explanation of other paid cash related to operating activities:
None
(2).Cash Related to Investment Activities
Significant received cash related to investment activities
□Applicable Not Applicable
Significant paid cash related to investment activities
□Applicable Not Applicable
Other received cash related to investment activities
□Applicable Not Applicable
Other paid cash related to investment activities
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the
Items
Period Previous Period
Gains from Exchange Settlement 2,859,048.14
Total 2,859,048.14
Explanation of other paid cash related to investment activities:
None
(3).Cash Related to Financing Activities
Other received cash related to financing activities
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the
Items
Period Previous Period
Restricted Monetary Funds 428,515,211.85 235,856,949.53
Total 428,515,211.85 235,856,949.53
Explanation of other received cash related to financing activities:
None
Other paid cash related to financing activities
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the
Items
Period Previous Period
Restricted Monetary Funds 190,591,895.44 219,481,618.14
Repurchased Shares 64,294,882.98 283,414,526.08
Principal and Lease Deposits for Lease
Liabilities
Total 255,748,337.46 503,808,378.73
Explanation of other paid cash related to financing activities:
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
None
Changes in Liabilities Arising from Financing Activities
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase during the Current Period Decrease during the Current Period
Items Beginning Balance Non-cash Non-cash Ending Balance
Cash Changes Cash Changes
Changes Changes
Short-term
Borrowings
Long-term
Borrowings
Lease
Liabilities
Total 3,834,737,908.70 2,874,965,205.64 5,227,665.13 2,635,191,580.60 75,172,789.09 4,004,566,409.78
(4).Explanation of Presenting Cash Flows at Net Amount
□Applicable Not Applicable
(5).Significant Events and Financial Effects That Do Not Involve Current Cash Receipts or
Payments but May Affect the Company's Financial Position or May Affect the Company’s
Cash Flows in the Future
□Applicable Not Applicable
(1).Supplementary Information for Cash Flow Statements
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount for the Current Amount for the
Supplementary Information
Period Previous Period
Net Profit 1,767,950,116.89 1,473,823,789.92
Plus: Asset Impairment Reserves 9,236,606.64 1,987,907.91
Credit Impairment Losses 154,305.79 -6,162,617.22
Depreciation of Fixed Assets, Depletion of Oil and Gas Assets, and
Depreciation of Productive Biological Assets
Amortization of Right-of-Use Assets 1,804,653.82 1,200,962.88
Amortization of Intangible Assets 20,437,708.39 21,594,903.82
Amortization of Long-term Deferred Expenses 18,080,269.41 14,792,568.72
Losses on Disposal of Fixed Assets, Intangible Assets and Other
-438,552.05 -1,598,224.17
Long-term Assets ("-" for gains)
Losses on Scrapping of Fixed Assets ("-" for gains) 6,570,163.08 24,205,123.35
Losses on Changes in Fair Value ("-" for gains) -16,016,844.67 -1,959,926.94
Financial Expenses ("-" for gains) -737,611.57 -23,730,451.06
Investment Losses ("-" for gains) -29,250,766.79 -14,671,408.04
Decrease in Deferred Income Tax Assets ("-" for increase) -19,972,579.93 24,645,983.80
Increase in Deferred Income Tax Liabilities ("-" for decrease) -35,060.17 -1,384,353.48
Decrease in Inventories ("-" for increase) 208,943,971.20 416,520,802.04
Decrease in Operating Receivables ("-" for increase) -3,689,852.79 253,649,805.16
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Increase in Operating Payables ("-" for decrease) -313,556,197.56 -591,564,282.59
Others
Net Cash Flow Arising from Operating Activities 2,312,791,220.63 2,235,818,123.12
Debt to Capital
Convertible Corporate Bonds Due Within One Year
Financing Leasing Fixed Assets
Ending Cash Balance 2,722,743,961.39 3,534,589,105.39
Minus: Beginning Cash Balance 4,131,859,602.14 4,780,614,442.73
Plus: Ending Cash Equivalent Balance
Minus: Beginning Cash Equivalent Balance
Net Increase in Cash and Cash Equivalents -1,409,115,640.75 -1,246,025,337.34
(2).Net Cash Paid for Acquiring Subsidiaries for the Current Period
□Applicable Not Applicable
(3).Net Cash Received for Disposing Subsidiaries for the Current Period
□Applicable Not Applicable
(4).Composition of Cash and Cash Equivalents
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
I. Cash 2,722,743,961.39 4,131,859,602.14
Including: Cash on Hand
Bank Deposits Available for Immediate Payment 2,699,729,334.80 4,112,890,088.86
Other Monetary Funds Available for Immediate
Payment
Deposits with Central Banks Available for
Payment
Interbank Deposits
Interbank Placements
II. Cash Equivalents
Including: Bond Investment Due within Three Months
III. Ending Balance of Cash and Cash Equivalents 2,722,743,961.39 4,131,859,602.14
Including: Cash and Cash Equivalents Restricted for Use
by the Parent Company or Subsidiaries within the Group
(5).Instances Where Usage is Restricted but Still Classified as Cash and Cash Equivalents
□Applicable Not Applicable
(6).Monetary Funds Not Classified as Cash and Cash Equivalents
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Explanation of Name of "Other" Items Adjusted Against the Ending Balance for the Previous Year,
Adjusted Amount and Other Matters:
□Applicable Not Applicable
(1).Foreign Currency Monetary Items
Applicable □ Not Applicable
Unit: Yuan
Ending Foreign Currency Ending Balance
Items Conversion Rate
Balance Converted to Renminbi
Monetary Funds 383,332,237.91
Including: US Dollar 53,547,214.39 7.1586 383,323,088.95
Euro 739.24 8.4024 6,211.39
Hong Kong Dollar 687.50 0.9120 626.97
British Pound 34.20 9.8300 336.19
Singapore Dollar 351.44 5.6179 1,974.41
Accounts Receivable 311,837,811.76
US Dollar 43,561,120.25 7.1586 311,836,635.42
Euro 140.00 8.4024 1,176.34
Other Receivables 556,714.08
US Dollar 75,898.40 7.1586 543,326.29
Singapore Dollar 2,383.00 5.6179 13,387.79
Long-term Receivables 348,927.06
Singapore Dollar 62,108.00 5.6179 348,927.06
Other Current Assets 22,423.81
Singapore Dollar 3,991.38 5.6179 22,423.81
Accounts Payable 6,183,554.90
US Dollar 852,328.00 7.1586 6,101,475.22
Euro 9,768.60 8.4024 82,079.68
Other Payables 9,572,919.10
US Dollar 1,337,257.03 7.1586 9,572,888.17
Singapore Dollar 5.50 5.6179 30.93
Accrued Employee
Compensation
Singapore Dollar 63,159.14 5.6179 354,832.47
Lease Liabilities 1,160,053.99
Singapore Dollar 206,486.24 5.6179 1,160,053.99
Non-current Liabilities Due
Within One Year
US Dollar 3,710,661.45 7.16 26,563,141.06
Singapore Dollar 159,083.46 5.6179 893,741.90
Other Explanations:
None
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(2).Explanation of overseas operating entities, including disclosure of their main overseas
operating locations, functional currencies and selection basis for significant overseas
operating entities as well as disclosure of reasons for changes in functional currencies
□Applicable Not Applicable
(1). As Lessee
√Applicable □Not Applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable Not Applicable
Lease expenses on short-term leases or leases of low-value assets with simplified treatment
Applicable □ Not Applicable
RMB 1,440,097.75
Amount Incurred during Amount Incurred during the
Items
the Current Period Previous Period
Interest of Lease Liabilities 582,068.74 223,774.28
Expenses on Short-term Leases 858,029.01 821,886.19
Sale-leaseback Transactions and Judgement Basis
□Applicable Not Applicable
Total cash outflows related to leases: 861,559.04 (Unit: Yuan Currency: RMB)
(2). As Lessor
Operating leases as lessor
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Including: Revenue Related to
Items Revenue from Leases Variable Lease Payments Not
Recorded in Lease Receipts
Housing Structures 6,439,403.13
Equipment 160,867.80
Vehicles 86,283.16
Total 6,686,554.09
Financing leases as lessor
□Applicable Not Applicable
Adjustment Table for Undiscounted Lease Receipts and Net Lease Investments
□Applicable Not Applicable
Undiscounted Lease Receipts over the Next Five Years
□Applicable Not Applicable
(3). Recognition of Profits and Losses from Financing Leases as Manufacturer or Dealer
□Applicable Not Applicable
Other Explanations
None
□Applicable Not Applicable
□Applicable Not Applicable
VIII. Research and Development Expenses
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
□Applicable Not Applicable
Significant Capitalized Research and Development Projects
□Applicable Not Applicable
Development Expenditure Impairment Reserves
□Applicable Not Applicable
Other Explanations
None
□Applicable Not Applicable
IX. Changes in Consolidation Scope
□Applicable Not Applicable
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
□Applicable Not Applicable
Whether there are transactions or matters resulting in loss of control over subsidiaries during the current
period
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Whether there are instances in which the disposal of investment in subsidiaries is conducted through
multiple transactions and results in loss of control during the current period
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Explanation of changes in consolidation scope due to other reasons (such as establishment of new
subsidiaries and liquidation of subsidiaries) and related circumstances:
Applicable □ Not Applicable
Name Reason for Changes
PLUMINO PRECISION FERMENTATION HOLDINGS PTE. LTD. New Establishment
Plumino Precision Fermentation US Holdings, Inc. New Establishment
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
X. Equity in Other Entities
(1).Composition of Business Group
Applicable □ Not Applicable
Unit: yuan Currency: RMB
Names of Main Operating Stock Ownership Ratio (%)
Registered Capital Place of Registration Business Nature Acquisition Method
Subsidiaries Location Direct Indirect
Investment or
Tongliao Meihua Tongliao 1,800,000,000 Tongliao Manufacturing 100
Establishment
Merger Not Under the
Tongliao Jianlong Tongliao 133,000,000 Tongliao Manufacturing 100
Same Control
Investment or
Xinjiang Meihua Wujiaqu 2,500,000,000 Wujiaqu Manufacturing 100
Establishment
Xinjiang Merger Not Under the
Wujiaqu 260,000,000 Wujiaqu Manufacturing 100
Agriculture Same Control
Investment or
Wujiaqu Jianlong Wujiaqu 160,000,000 Wujiaqu Manufacturing 100
Establishment
Technological Investment or
Langfang R & D Langfang 38,000,000 Langfang 100
Development Establishment
Technological Investment or
Shanghai R & D Shanghai 31,000,000 Shanghai 100
Development Establishment
Investment or
Langfang BAIAN Langfang 25,000,000 Langfang Warehousing 100
Establishment
Langfang Investment or
Langfang 250,000,000 Langfang Manufacturing 100
Seasoning Establishment
Tongliao Investment or
Tongliao 5,000,000 Tongliao Manufacturing 100
Seasoning Establishment
Hong Kong Hong Kong 6,277,900 Hong Kong Trading 100 Investment or
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Meihua Establishment
Investment or
Lhasa Meihua Lhasa 800,000,000 Lhasa Investment 100
Establishment
Investment or
Jilin Meihua Baicheng 2,000,000,000 Baicheng Manufacturing 100
Establishment
Investment or
Hengqin Meihua Hengqin 50,000,000 Zhuhai Investment 100
Establishment
Hong Kong Investment or
Hong Kong 50,000,000 Hong Kong Investment 100
Holding Establishment
Investment or
Cayman Company Cayman 5,000,000 Cayman Investment 100
Establishment
Singapore Investment or
Singapore 10,000,000 Singapore Trading 100
Company Establishment
Investment or
Singapore spv Singapore 1.00 Singapore Investment 100
Establishment
Investment or
U.S. Holding U.S. 50,000,000 U.S. Investment 100
Establishment
Explanation of the Difference between Ownership Ratio and Voting Rights Ratio in Subsidiaries:
None
Basis for Controlling Invested Units with Half or Less than Half of Voting Rights, and Not Controlling Invested Units with More than Half of Voting Rights:
None
Basis for Controlling Significant Structured Entities Included in the Consolidation Scope:
None
Basis for Determining Whether the Company is an Agent or Principal:
None
Other Explanations:
The above registered capital amounts are subscription-based. The registered capital of the Hong Kong holding company is HKD 50 million, that of the Cayman
company is USD 5 million, that of the Singapore company is SGD 10 million, that of the Singapore SPV is SGD 1, and that of the U.S. holding company is USD 50
million.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(2).Significant Non-Wholly-Owned Subsidiaries
□Applicable Not Applicable
(3).Main Financial Information of Significant Non-Wholly-Owned Subsidiaries
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(4).Significant Restrictions on the Use of Business Group’s Assets and Settlement of Business
Group’s Debts:
□Applicable Not Applicable
(5).Financial Support or Other Support Provided for Structured Entities Included in the Scope
of Consolidated Financial Statements:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
□Applicable Not Applicable
Applicable □ Not Applicable
(1). Significant Joint Ventures or Associates
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Stock Ownership Accounting
Ratio (%) Treatment
Main
Names of Joint Ventures or Place of Business Methods for
Operating
Associates Registration Nature Investment in
Location Direct Indirect
Joint Venture or
Associates
Tongliao Desheng Bio-Tech
Tongliao Tongliao Manufacturing 49 Equity Method
Co., Ltd.
Explanation of the Difference between Ownership Ratio and Voting Rights Ratio in Joint Ventures or
Associates:
None
Basis for Holding Less than 20% Voting Rights but Having Significant Influence, or Holding 20% or
More Voting Rights but Not Having Significant Influence:
None
(2). Main Financial Information of Significant Joint Ventures
□Applicable Not Applicable
(3). Main Financial Information of Significant Associates
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Ending Balance/ Amount Incurred Beginning Balance/ Amount Incurred
During the Current Period During the Previous Period
Tongliao Desheng XX Tongliao Desheng XX
Bio-Tech Co., Ltd. Company Bio-Tech Co., Ltd. Company
Current Assets 13,349,780.11 27,738,137.26
Non-Current Assets 17,115,200.77 18,485,239.24
Total Assets 30,464,980.88 46,223,376.50
Current Liabilities 16,669,656.25 26,873,303.27
Non-Current Liabilities
Total Liabilities 16,669,656.25 26,873,303.27
Minority Shareholders’ Equity
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Shareholders’ Equity Attributable to
the Parent Company
Net Asset Share Calculated by Stock
Ownership Ratio
Adjustments
--Goodwill
--Unrealized Profits on Internal
Transactions
--Others
Book Value of Equity Investments in
Associates
Fair Value of Equity Investments in
Associates with Public Quotation
Operating Revenues 55,978,803.48 53,988,297.80
Net Profits -838,746.96 -2,743,527.12
Net Profits from Discontinued
Operations
Other Comprehensive Income
Total Comprehensive Income -838,746.96 -2,743,527.12
Dividends Received from Associates
during the Current Year
Other Explanations
None
(4). Consolidated Financial Information of Insignificant Joint Ventures and Associates
□Applicable Not Applicable
(5). Explanation of Significant Restrictions on the Ability of Joint Ventures or Associates to
Transfer Funds to the Company
□Applicable Not Applicable
(6). Excessive Losses Incurred by Joint Ventures or Associates
□Applicable Not Applicable
(7). Unrecognized Commitments Related to Investments in Joint Ventures
□Applicable Not Applicable
(8). Contingent Liabilities Related to Investments in Joint Ventures or Associates
□Applicable Not Applicable
□Applicable Not Applicable
Explanation of Structured Entities Not Included in the Scope of Consolidated Financial Statements:
□Applicable Not Applicable
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
XI. Government Grants
□Applicable Not Applicable
Reasons for Not Receiving Expected Amounts of Government Grants at the Anticipated Timing
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount
Amount
Recorded in Other
Newly Added Transferred to
Financial Non-operati Changes
Beginning Grants for the Other Income Asset/Inco
Statement ng Revenue for the Ending Balance
Balance Current for the me-related
Items for the Current
Period Current
Current Period
Period
Period
Deferred Asset-rela
Income ted
Total 381,020,645.51 17,410,000.00 22,920,234.90 375,510,410.61 /
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Types
Period Period
Asset-related 22,920,234.90 22,140,652.27
Income-related 114,724,232.24 132,274,191.59
Total 137,644,467.14 154,414,843.86
Other Explanations:
or Loss for the Current Period
Amount Amount
Account Asset/Inco
Incurred during Incurred during me-related
Grant Items ing
the Current the Previous
Subjects
Period Period
Other Asset-relat
Supporting Subsidies for Infrastructure 630,118.38 630,118.36
Income ed
Subsidy for Production Water Pipeline Construction Other Asset-relat
Projects Income ed
Subsidy for Boiler Desulfurization Technology Other Asset-relat
Transformation Projects Income ed
Subsidy for Electric Bag Composite Dust Removal Other Asset-relat
Retrofit Project at Heating Stations Income ed
Other Asset-relat
Infrastructure Subsidy Funds 24,438.00 24,438.00
Income ed
Construction of a Green-Designed Industrialized Other 324,176.31 287,570.66 Asset-relat
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Demonstration Line for Lysine Production with an Income ed
Annual Capacity of 400,000 Tons
Other Asset-relat
Industrial Development Guidance Fund 16,345,754.94 16,556,615.75
Income ed
Other Asset-relat
Industrial Development Guidance Fund 1,414,170.42 1,415,267.14
Income ed
Other Asset-relat
Technology Transformation Projects 1,943,773.68 1,968,863.19
Income ed
Other Asset-relat
Building Innovative Capacity - Biomass Portion 206,405.88 211,379.17
Income ed
Amino Acid 18,000-ton Annual Production Project – Other Asset-relat
Ultra-Long-Term Treasury Fund Income ed
Key Industry Development Special Asset Subsidy – Other Asset-relat
Tongliao Income ed
Other Asset-relat
Special Fund for Foreign Trade Development -Xinjiang 31,700.44
Income ed
Other Asset-relat
Air Quality Improvement Incentive – Xinjiang 7,327.59
Income ed
Other Income-rel
Enterprise Development Special Fund Award 101,000,000.00 122,831,585.00
Income ated
Other Income-rel
Social Insurance Subsidies 1,929,596.32 2,061,596.56
Income ated
Other Income-rel
Industrial Development Guidance Fund 5,000,000.00
Income ated
Other Income-rel
Special Fund for Foreign Trade Development 8,797,300.00
Income ated
Other Income-rel
One-time employment subsidy 1,018,170.00
Income ated
Other Income-rel
Special Fund for Science and Technology Development 1,030,000.00
Income ated
Other Income-rel
Export freight subsidy from the Bureau of Commerce
Income ated
On-the-job training subsidy from the Employment Other Income-rel
Administration Income ated
Project funding from the Science and Technology Other Income-rel
Bureau Income ated
Other Income-rel
High-tech enterprise certification
Income ated
Stabilization subsidy disbursed by the Social Security Other Income-rel
Bureau Income ated
One-time expansion subsidy from the Social Security Other Income-rel
Bureau Income ated
Other Income-rel
Others 511,171.32 940,000.00
Income ated
Total 137,644,467.14 154,414,843.86
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
and expenses
Amount Incurred Amount Incurred
Items of Offset
Grant Items Type during the Current during the
Costs
Period Previous Period
Construction in
Government Interest Subsidies Asset-related 27,777.78
Progress
Financial
Government Interest Subsidies Income-related 118,045.15 477,777.74
Expenses
Total 118,045.15 505,555.52
XII. Risks Related to Financial Instruments
Applicable □ Not Applicable
The Company's main financial instruments include monetary funds, equity investments, debt
investments, borrowings, receivables, payables, etc. Various risks of financial instruments faced in daily
activities mainly include credit risk, liquidity risk and market risk. The risks associated with these
financial instruments and the risk management policies adopted by the Company to mitigate these risks
are as follows:
The Board of Directors is responsible for planning and establishing the Company's risk
management framework, formulating the Company's risk management policies and related guidelines,
and supervising the implementation of risk management measures. The Company has formulated risk
management policies to identify and analyze the risks faced by it. These risk management policies
provide specific provisions for specific risks, covering various aspects such as market risk, credit risk,
and liquidity risk management. The Company regularly evaluates the market environment and changes
in its operations to determine whether to update risk management policies and systems. The Company's
risk management is conducted by the Risk Management Committee in accordance with policies
approved by the Board of Directors. The Risk Management Committee identifies, evaluates, and avoids
relevant risks through close cooperation with other business departments of the Company. The
Company's Internal Audit Department conducts regular audits of risk management controls and
procedures, and reports the audit results to the Company's Audit Committee. The Company diversifies
its investments and business portfolios appropriately to mitigate financial instrument risks and reduces
risks concentrated in a single industry, specific regions, or specific counterparties by formulating
corresponding risk management policies.
(I) Various Risks Arising from Financial Instruments
Credit risk refers to the risk of financial loss incurred by the Company due to the counterparty's
failure to fulfill its obligations under the contract. The management has formulated appropriate credit
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
policies and maintains ongoing oversight of credit risk exposure.
The Company has adopted a policy to conduct transactions solely with counterparties with good
credit standing. In addition, the Company evaluates the credit qualifications of customers based on
factors such as their financial position, the likelihood of obtaining guarantees from third parties, credit
records, and other factors such as current market conditions. The Company continuously monitors the
balance of notes receivable, accounts receivable, and recovery situations. For customers with poor credit
records, the Company adopts measures such as written payment reminders, shortening credit periods, or
canceling credit periods to ensure that it won’t face significant credit losses. Furthermore, the Company
reviews the recovery situation of financial assets on each balance sheet date to ensure that sufficient
expected credit loss reserves are provided for relevant financial assets.
Other financial assets held by the Company include monetary funds, other receivables, debt
investments, etc., and the credit risk of these financial assets stems from defaults by counterparties, with
the maximum credit risk exposure being the book value of each financial asset in the balance sheet.
Except for the financial guarantees made by the Company as disclosed in (5) in Note XIV, the Company
doesn’t provide any other guarantees that may expose it to credit risk.
The monetary funds held by the Company are mainly deposited with financial institutions such as
state-owned holding banks and other large and medium-sized commercial banks. The management
believes that these commercial banks exhibit high credibility and asset conditions, and there is no
significant credit risk that may lead to any significant losses due to default by counterparties. The
Company’s policy is to control the amount of deposits in various well-known financial institutions based
on the market reputation, operating scale, and financial background of these institutions to limit the
amount of credit risk exposure to any single financial institution.
As part of the Company's credit risk asset management, the Company uses aging to assess
impairment losses on accounts receivable and other receivables. The Company’s accounts receivable
and other receivables involve a significant number of customers and the aging information can reflect
the payment ability and bad debt risk of these customers with respect to accounts receivable and other
receivables. The Company calculates historical actual bad debt rates for different aging periods based on
historical data and makes adjustments to obtain the expected loss rate, taking into account the forecasts
of current and future economic conditions, such as national GDP growth rate, total investment in
infrastructure, national monetary policy, and other forward-looking information. For long-term
receivables, the Company comprehensively considers settlement periods, payment periods agreed in the
contract, the financial position of debtors, and the economic situation of the industry in which the
debtors are located, and makes adjustments to reasonably assess the expected credit losses based on the
above forward-looking information.
As of June 30, 2025, the book balance of related assets and the status of expected credit impairment
losses are as follows:
Items Book Balance Impairment Reserves
Notes Receivable 92,822,653.44
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Items Book Balance Impairment Reserves
Accounts Receivable 639,408,964.70 32,001,734.89
Other Receivables 141,244,894.92 116,335,181.56
Debt Investments 10,500,000.00
Long-term Receivables (including those due
within one year)
Total 884,596,225.66 148,336,916.45
As of June 30, 2025, the amount of financial guarantees provided by the Company to external
parties amounted to RMB 904,155,700. Refer to (5) in Section XIV for details of the financial guarantee
contracts. The Company's management assessed the overdue status of related borrowings under the
guarantees, the financial position of the borrowers, and the economic situation of their respective
industries and concluded that since the initial recognition of these financial guarantee contracts, there
has been no significant increase in credit risk. Therefore, the Company measured its impairment reserves
based on the amount equivalent to the expected credit losses within the next 12 months for the
aforementioned financial guarantee contracts. During the reporting period, there were no changes in the
Company's assessment methods and significant assumptions. According to the assessment by the
Company's management, there were no significant expected impairment reserves for the related financial
guarantees.
The Company's major customers have reliable and good reputations; therefore, the Company
believes that these customers do not pose significant credit risks. Given the extensive range of customers,
the Company does not face any significant credit concentration risks.
Liquidity risk refers to the risk of funds shortage when the Company fulfills its obligations for
settlement through cash delivery or other financial assets. Subsidiaries of the Company are responsible
for their respective cash flow forecasts. The Company's Financial Management Department continuously
monitors the short-term and long-term fund requirements of the Company based on the cash flow
forecast results of each subsidiary at the Company level, to ensure the maintenance of adequate cash
reserves. Additionally, it continuously monitors compliance with provisions specified in loan
agreements, and obtains commitments from major financial institutions to provide sufficient standby
funds to meet short-term and long-term fund requirements. Furthermore, the Company has entered into
credit agreements with major banks involved in its main business to support itself in fulfilling
obligations related to commercial notes. As of June 30, 2025, the Company has secured bank credit lines,
totaling RMB 17.366 billion, from multiple banks in China, of which RMB 5.196 billion has been
utilized.
(1). Exchange Risk
Although the Company's main operations are based in China, with transactions primarily settled in
Renminbi, there still exists exchange risk associated with recognized foreign currency assets, liabilities,
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
and future foreign currency transactions (where the US dollar is used as the primary valuation currency).
The Company's Financial Management Department is responsible for monitoring the scale of the
Company’s foreign currency transactions and foreign currency assets and liabilities to minimize the
exposure to exchange risk. To this end, the Company may enter into forward foreign exchange contracts
or currency swap contracts to avoid the exchange risk.
this year are as follows:
The Company’s subsidiary, Hong Kong Meihua, has entered into forward foreign exchange
contracts with Standard Chartered Bank (Hong Kong) Limited, with an expected principal delivery of
USD 19.981 million;
The Company’s subsidiary, Hong Kong Meihua, has also entered into forward foreign exchange
contracts with HSBC Bank (China) Company Limited, with an expected principal delivery of USD
The Company’s subsidiary, Meihua Hong Kong, also signed a forward foreign exchange contract
with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Hong Kong Branch) in the amount of USD 3 million.
Company converted into Renminbi are as follows:
Ending Balance
Items HKD
USD Items Euro Items GBP Items SGD Items Total
Items
Foreign Currency Financial
Assets:
Monetary Funds 383,323,088.95 6,211.39 626.97 336.19 1,974.41 383,332,237.91
Accounts Receivable 311,836,635.42 1,176.34 311,837,811.76
Other Receivables 543,326.29 13,387.79 556,714.08
Long-term Receivables 348,927.06 348,927.06
Other Current Assets 22,423.81 22,423.81
Subtotal 695,703,050.66 7,387.73 626.97 336.19 386,713.07 696,098,114.62
Foreign Currency Financial
Liabilities:
Accounts Payable 6,101,475.22 82,079.68 6,183,554.90
Other Payables 9,572,888.17 30.93 9,572,919.10
Employee benefits payable 354,832.47 354,832.47
Lease Liabilities 1,160,053.99 1,160,053.99
Current Portion of
Non-current Liabilities
Subtotal 42,237,504.45 82,079.68 2,408,659.29 44,728,243.42
(2). Interest Rate Risk
The Company's interest rate risk mainly arises from bank borrowings, etc. Financial liabilities with
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
floating interest rate expose the Company to cash flow interest rate risk, while financial liabilities with
fixed interest rate expose the Company to fair value interest rate risk. The Company determines the
relative proportions of fixed-rate and floating-rate contracts based on the prevailing market conditions at
the time.
The Company’s Financial Management Department continuously monitors the Company’s interest
rate levels. A rise in interest rates would increase the cost of newly added interest-bearing debts and
interest expenditures on outstanding interest-bearing debts with floating rates, and pose significant
adverse effects on the Company's financial performance. The management will make timely adjustments
based on the latest market conditions and these adjustments may include interest rate swap arrangements
to mitigate interest rate risk.
The Company had no interest rate swap arrangements for this year.
contracts denominated in Renminbi, with a total amount of RMB 1,732,115,654.12, as detailed in (45) in
Section VII.
(3). Price Risk
Price risk refers to the risk of fluctuations caused by market price changes other than exchange rate
risk and interest rate risk, mainly arising from changes in commodity prices, stock market indices, equity
instrument prices, and other risk variables.
(1).The Company conduct hedging transactions for risk management
□Applicable Not Applicable
Other Explanations
□Applicable Not Applicable
(2).The Company conducts eligible hedging transactions and applies hedging accounting
□Applicable Not Applicable
Other Explanations
□Applicable Not Applicable
(3).The Company conducts eligible hedging transactions for risk management and expects to
achieve risk management objectives but does not apply hedging accounting
□Applicable Not Applicable
Other Explanations
□Applicable Not Applicable
(1).Classification of Transfer Methods
□Applicable Not Applicable
(2).Financial Assets Derecognized Due to Transfer
□Applicable Not Applicable
(3).Financial Assets Continuously Involved in Transfer
□Applicable Not Applicable
Other Explanations
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
XIII. Disclosure of Fair Value
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Fair Value
Items Level 1 Fair Level 2 Fair
Level 3 Fair Value
Value Value Total
Measurement
Measurement Measurement
I. Continuous Fair Value Measurement
(I) Financial Assets Held for Trading 468,200.00 1,397,826,972.26 1,398,295,172.26
Recorded in the Profit or Loss for the Current Period
(1) Debt Instrument Investments
(2) Equity Instrument Investments
(3) Derivative Financial Assets 468,200.00 468,200.00
Others 1,397,826,972.26 1,397,826,972.26
Changes Recorded in the Profit or Loss for the Current Period
(1) Debt Instrument Investments
(2) Equity Instrument Investments
(II) Other Debt Investments
(III) Other Equity Instrument Investments 170,534,650.00 157,000,000.00 327,534,650.00
(IV) Investment Properties
(V) Biological Assets
Receivables Financing 18,045,534.34 18,045,534.34
Total Amount of Assets Measured at Fair Value on a
Continuous Basis
(VI) Financial Liabilities Held for Trading
Recorded in the Profit or Loss for the Current Period
Including: Issued Bonds Held for Trading
Derivative Financial Liabilities
Others
with Changes Recorded in the Profit or Loss for the Current
Period
Total Amount of Liabilities Measured at Fair Value on a
Continuous Basis
II. Non-Continuous Fair Value Measurement
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(I) Assets Held for Sale
Total Amount of Assets Measured at Fair Value on a
Non-Continuous Basis
Total Amount of Liabilities Measured at Fair Value on a
Non-Continuous Basis
Measurement Items
Applicable □ Not Applicable
Level 1: Unadjusted quoted prices for identical assets or liabilities that can be obtained in active
markets on the measurement date;
Parameters Adopted for Continuous and Non-continuous Level 2 Fair Value Measurement
Items
Applicable □ Not Applicable
Level 2: Directly or indirectly observable inputs other than quoted prices included in Level 1 for
related assets or liabilities;
Inputs for Level 2 include: 1) Quotations for similar assets or liabilities in active markets; 2)
Quotations for identical or similar assets or liabilities in inactive markets; 3) Other observable inputs
besides quotations, including interest and yield curves, implied volatility, credit spreads observable
during normal quotation intervals, etc.; 4) Inputs validated by the market, etc.
Parameters Adopted for Continuous and Non-continuous Level 3 Fair Value Measurement
Items
Applicable □ Not Applicable
Level 3: Unobservable inputs for related assets or liabilities.
Unobservable Parameters for Continuous Level 3 Fair Value Measurement Items
□Applicable Not Applicable
Policies for Determining Transitioning Timing for Continuous Fair Value Measurement Items
□Applicable Not Applicable
Changes
□Applicable Not Applicable
Applicable □ Not Applicable
Financial assets and liabilities not measured at fair value mainly include: receivables, debt
investments, short-term borrowings, payables, non-current liabilities due within one year, long-term
borrowings, and equity instrument investments for which there are no quotations in active markets and
whose fair value cannot be reliably measured.
The book values of the above financial assets and liabilities not measured at fair value differ only
slightly from their fair values.
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
XIV. Related Parties and Related Transactions
Applicable □ Not Applicable
Unit: ‘0000 yuan Currency: RMB
Parent Company’s
Parent Company’s
Name of Parent Place of Stock Ownership
Business Nature Registered Voting Rights in
Company Registration in the Company
the Company (%)
(%)
Meng Qingshan 29.94
Explanation of the Status of the Company’s Parent Company
None
The ultimate controlling party of the Company is Meng Qingshan
Other Explanations:
None
Refer to the notes for the details of the Company’s Subsidiaries
Applicable □ Not Applicable
Refer to (1) in Section X for equity in subsidiaries
Refer to the notes for the details of the Company’s significant joint ventures or associates
Applicable □ Not Applicable
For details of the Company’s significant joint ventures or associates, refer to 3 - Equity in Joint
Arrangements or Associates in Section X.
Other joint ventures or associates with related transactions with the Company during the current period
or with balances formed from related transaction with the Company during the previous period are as
follows:
Applicable □ Not Applicable
Names of Joint Ventures or Associates Relationship with the Company
Tongliao Desheng Bio-tech Co., Ltd. Associate
Other Explanations
□Applicable Not Applicable
Applicable □ Not Applicable
Names of Other Related Parties Relationship with the Company
Hu Jijun Shareholder of the Company
Liang Yubo The Shareholders and Senior Executive of the company.
Wang Aijun The Shareholders and Senior Executive of the company.
He Jun The Shareholders and Senior Executive of the company.
Liu Xinghua Director of the Company
Lu Chuang Director of the Company
Chang Libin Supervisor of the Company
Liu Xiaojing Supervisor of the Company
Liu Qiang Supervisor of the Company
Liu Xianfang Senior Executive of the Company
Wang Lihong Senior Executive of the Company
Wang You Senior Executive of the Company
The Legal Representative of the company is a direct relative of the
Tibet Meihua Charity Foundation
shareholder of the Company
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Other Explanations
None
(1). Related Transactions for Purchasing and Selling Goods/Providing and Accepting Labor
Services
Table of Purchasing Goods/Accepting Labor Services
□Applicable Not Applicable
Table of Selling Goods/Providing Labor Services
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Content of Related Amount Incurred during the Amount Incurred during the
Related Party
Transaction Current Period Previous Period
Tongliao Desheng Bio-tech Co., Ltd. Goods 40,939,356.32 40,961,716.94
Tongliao Desheng Bio-tech Co., Ltd. Services 468,821.28 12,653.30
Total 41,408,177.60 40,974,370.24
Explanation of Related Transactions for Purchasing and Selling Goods / Providing and Accepting
Services
□Applicable Not Applicable
(2). Information of Related Delegated Management/Contracting and Delegating
Management/Outsourcing
Table of the Delegated Management/Contracting by the Company:
□Applicable Not Applicable
Explanation of Related Delegated Management/Contracting
□Applicable Not Applicable
Table of Delegating Management/Outsourcing by the Company:
□Applicable Not Applicable
Explanation of Related Management/Outsourcing
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(3). Information of Related Leases
The Company as the Lessor:
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Types of Leased Lease Revenue Recognized Lease Revenue Recognized
Name of Lessee
Asset during the Current Period during the Previous Period
Tongliao Desheng Bio-tech Co., 754,159.91 1,252,062.94
Housing
Ltd.
Total 754,159.91 1,252,062.94
The Company as the Lessee:
□Applicable Not Applicable
Explanation of Related Leases
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(4). Information of Related Guarantee
The Company as the Guarantor
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Start Date of Expiry Date of Whether the Guarantee
Guaranteed Party Guaranteed Amount
Guarantee Guarantee Has Been Fully Fulfilled
Tongliao Meihua 80,000,000.00 2024/1/25 2025/1/25 Yes
Tongliao Meihua 80,000,000.00 2024/1/25 2025/1/25 Yes
Tongliao Meihua 80,000,000.00 2024/1/31 2025/1/31 Yes
Tongliao Meihua 60,000,000.00 2024/3/21 2025/3/21 Yes
Tongliao Meihua 40,000,000.00 2024/3/25 2025/3/21 Yes
Tongliao Meihua 40,000,000.00 2024/3/25 2025/3/21 Yes
Tongliao Meihua 60,000,000.00 2024/3/27 2025/3/21 Yes
Tongliao Meihua 80,000,000.00 2024/3/29 2025/3/21 Yes
Tongliao Meihua 20,000,000.00 2024/3/29 2025/3/21 Yes
Tongliao Meihua 98,666,700.00 2023/5/22 2038/5/8 No
Tongliao Meihua 1,333,300.00 2023/5/22 2038/5/8 Yes
Tongliao Meihua 19,042,653.88 2024/6/6 2038/5/8 No
Tongliao Meihua 257,346.12 2024/6/6 2038/5/8 Yes
Tongliao Meihua 9,866,660.04 2024/6/13 2038/5/8 No
Tongliao Meihua 133,339.96 2024/6/13 2038/5/8 Yes
Tongliao Meihua 5,919,996.02 2024/6/19 2038/5/8 No
Tongliao Meihua 80003.98 2024/6/19 2038/5/8 Yes
Tongliao Meihua 14,799,990.06 2024/6/26 2038/5/8 No
Tongliao Meihua 200,009.94 2024/6/26 2038/5/8 Yes
Tongliao Meihua 45,000,000.00 2024/10/21 2027/10/21 No
Tongliao Meihua 5,000,000.00 2024/10/21 2027/10/21 Yes
Tongliao Meihua 54,000,000.00 2024/10/21 2027/10/21 No
Tongliao Meihua 6,000,000.00 2024/10/21 2027/10/21 Yes
Tongliao Meihua 36,000,000.00 2024/10/24 2027/10/21 No
Tongliao Meihua 4,000,000.00 2024/10/24 2027/10/21 Yes
Tongliao Meihua 45,000,000.00 2024/10/24 2027/10/21 No
Tongliao Meihua 5,000,000.00 2024/10/24 2027/10/21 Yes
Tongliao Meihua 36,000,000.00 2024/11/14 2027/10/21 No
Tongliao Meihua 4,000,000.00 2024/11/14 2027/10/21 Yes
Tongliao Meihua 36,000,000.00 2024/11/18 2027/10/21 No
Tongliao Meihua 4,000,000.00 2024/11/18 2027/10/21 Yes
Tongliao Meihua 18,000,000.00 2024/11/20 2027/10/21 No
Tongliao Meihua 2,000,000.00 2024/11/20 2027/10/21 Yes
Tongliao Meihua 147704000 2025/5/20 2038/5/8 No
Tongliao Meihua 1,996,000.00 2025/5/20 2038/5/8 Yes
Jilin Meihua 15,238,690.48 2021/9/13 2029/8/30 Yes
Jilin Meihua 21,875,000.00 2021/10/22 2029/8/30 Yes
Jilin Meihua 39,772,727.27 2021/11/25 2029/8/30 Yes
Jilin Meihua 22,840,909.09 2021/12/22 2029/8/30 Yes
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Jilin Meihua 5,000,000.00 2021/12/22 2029/8/30 Yes
Jilin Meihua 774,778.91 2021/8/30 2028/12/21 Yes
Jilin Meihua 36,500,000.00 2021/9/13 2029/8/4 Yes
Jilin Meihua 9,025,000.00 2021/10/19 2029/8/4 Yes
Jilin Meihua 16,309,090.91 2021/11/26 2029/8/4 Yes
Jilin Meihua 11,486,363.64 2021/12/23 2029/8/4 Yes
Jilin Meihua 846,552.38 2021/9/2 2029/8/4 Yes
Jilin Meihua 41,170,200.00 2021/9/18 2029/8/4 Yes
Jilin Meihua 10,301,000.00 2021/10/22 2029/8/4 Yes
Jilin Meihua 18,728,981.82 2021/11/26 2029/8/4 Yes
Jilin Meihua 13,032,727.27 2021/12/24 2029/8/4 Yes
Jilin Meihua 103,000,000.00 2022/6/28 2025/6/26 Yes
Jilin Meihua 1,000,000.00 2022/6/28 2025/6/26 Yes
Jilin Meihua 34,000,000.00 2022/11/21 2025/10/6 Yes
Jilin Meihua 29,000,000.00 2023/9/22 2025/9/22 Yes
Jilin Meihua 500,000.00 2023/9/22 2025/9/22 Yes
Jilin Meihua 500,000.00 2023/9/22 2025/9/22 Yes
Jilin Meihua 30,000,000.00 2024/4/10 2025/4/10 Yes
Jilin Meihua 40,000,000.00 2024/4/15 2025/4/10 Yes
Jilin Meihua 25,000,000.00 2024/4/18 2025/4/10 Yes
Jilin Meihua 45,000,000.00 2024/3/27 2025/3/26 Yes
Jilin Meihua 11,000,000.00 2024/4/9 2025/3/26 Yes
Tongliao Jianlong 27,000,000.00 2022/8/3 2032/4/23 Yes
Tongliao Jianlong 23,000,000.00 2022/8/3 2032/4/23 Yes
Tongliao Jianlong 40,000,000.00 2022/11/9 2032/4/23 Yes
Tongliao Jianlong 53,000,000.00 2022/11/23 2032/4/23 Yes
Tongliao Jianlong 12,000,000.00 2022/11/25 2032/4/23 Yes
Tongliao Jianlong 19,500,000.00 2023/6/27 2029/5/30 Yes
Tongliao Jianlong 500,000.00 2023/6/27 2029/5/30 Yes
Xinjiang Meihua 9,500,000.00 2023/5/23 2026/5/23 Yes
Xinjiang Meihua 11,222,973.50 2023/5/25 2026/5/23 Yes
Xinjiang Meihua 28,777,026.50 2023/5/29 2026/5/23 Yes
Xinjiang Meihua 15,000,000.00 2024/2/26 2027/2/26 Yes
Xinjiang Meihua 35,000,000.00 2024/3/14 2027/2/26 Yes
Xinjiang Meihua 4,769,421.44 2024/2/20 2025/2/19 Yes
Xinjiang Meihua 2,900,000.00 2024/2/21 2025/2/21 Yes
Xinjiang Meihua 9,000,000.00 2024/2/22 2025/2/22 Yes
Xinjiang Meihua 16,600,000.00 2024/2/23 2025/2/22 Yes
Xinjiang Meihua 9,539,261.17 2024/2/26 2025/2/26 Yes
Xinjiang Meihua 9,000,000.00 2024/2/27 2025/2/27 Yes
Xinjiang Meihua 16,726,946.60 2024/2/28 2025/2/28 Yes
Xinjiang Meihua 15,266,675.16 2024/3/1 2025/3/1 Yes
Xinjiang Meihua 19,843,843.13 2024/3/4 2025/3/3 Yes
Xinjiang Meihua 9,900,000.00 2024/3/6 2025/3/5 Yes
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Xinjiang Meihua 9,000,000.00 2024/3/7 2025/3/5 Yes
Xinjiang Meihua 9,900,000.00 2024/3/11 2025/3/8 Yes
Xinjiang Meihua 9,900,000.00 2024/3/13 2025/3/12 Yes
Xinjiang Meihua 9,900,000.00 2024/3/14 2025/3/14 Yes
Xinjiang Meihua 21,200,261.42 2024/3/21 2025/3/21 Yes
Xinjiang Meihua 26,550,000.00 2024/3/25 2025/3/25 Yes
Xinjiang Meihua 98,000,000.00 2024/7/25 2027/7/25 No
Xinjiang Meihua 1,000,000.00 2024/7/25 2027/7/25 Yes
Xinjiang Meihua 46,000,000.00 2024/8/21 2025/9/21 No
Xinjiang Meihua 3,000,000.00 2024/8/21 2025/9/21 Yes
Total 2,344,398,430.69
The Company as the Guaranteed Party
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Start Date of Expiry Date of Whether the Guarantee
Guarantor Guaranteed Amount
Guarantee Guarantee Has Been Fully Fulfilled
Tongliao Meihua 66,438,250.00 2022/12/14 2025/12/8 Yes
Tongliao Meihua 337,250.00 2022/12/14 2025/12/8 Yes
Xinjiang Meihua 98,500,000.00 2022/12/14 2025/12/8 Yes
Xinjiang Meihua 500,000.00 2022/12/14 2025/12/8 Yes
Tongliao Meihua, Yes
Xinjiang Meihua
Tongliao Meihua, Yes
Xinjiang Meihua
Tongliao Meihua, Yes
Xinjiang Meihua
Tongliao Meihua,
Xinjiang Meihua
Tongliao Meihua, Yes
Xinjiang Meihua
Tongliao Meihua, Yes
Xinjiang Meihua
Tongliao Meihua,
Xinjiang Meihua
Tongliao Meihua,
Xinjiang Meihua
Tongliao Meihua,
Xinjiang Meihua
Tongliao Meihua, Yes
Xinjiang Meihua
Tongliao Meihua, Yes
Xinjiang Meihua
Tongliao Meihua 112,000,000.00 2022/11/17 2025/11/14 Yes
Tongliao Meihua 84,000,000.00 2022/11/17 2025/11/14 Yes
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Tongliao Meihua, Yes
Xinjiang Meihua
Tongliao Meihua,
Xinjiang Meihua
Tongliao Meihua, No
Xinjiang Meihua
Tongliao Meihua, No
Xinjiang Meihua
Tongliao Meihua, No
Xinjiang Meihua
Total 1,408,195,500.00
Explanation of Related Guarantees
Applicable □ Not Applicable
Xinjiang Meihua as the guarantor
Whether the
Guaranteed Start Date of Expiry Date of Guarantee Has
Guaranteed Party
Amount Guarantee Guarantee Been Fully
Fulfilled
Tongliao Meihua 50,000,000.00 2024/4/19 2025/4/17 Yes
Tongliao Meihua 75,000,000.00 2023/8/28 2038/6/20 No
Tongliao Meihua 25,000,000.00 2023/8/28 2038/6/20 Yes
Tongliao Meihua 44,000,000.00 2024/2/6 2027/2/4 No
Tongliao Meihua 2,000,000.00 2024/2/6 2027/2/4 Yes
Tongliao Meihua 14,819,832.28 2024/12/5 2039/11/27 No
Tongliao Meihua 4,538,021.20 2024/12/12 2039/11/27 No
Tongliao Meihua 3,978,347.92 2024/12/19 2039/11/27 No
Tongliao Meihua 2,095,843.43 2024/12/25 2039/11/27 No
Tongliao Meihua 20,725,937.66 2025/2/13 2039/11/27 No
Tongliao Meihua 5,033,161.44 2025/2/20 2039/11/27 No
Tongliao Meihua 2,618,621.00 2025/3/13 2039/11/27 No
Tongliao Meihua 17,000,000.00 2025/3/25 2039/11/27 No
Tongliao Meihua 4,345,889.20 2025/4/10 2039/11/27 No
Total 271,155,654.13
(5). Fund Borrowing by Related Parties
□Applicable Not Applicable
(6). Status of Transfer of Assets and Debt Restructuring by Related Parties
□Applicable Not Applicable
(7). Compensation of Key Management Personnel
Applicable □ Not Applicable
Unit: ’0000 yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items
Period Period
Compensation of Key Management 672.59 2,042.35
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Personnel
(8). Other Related Transactions
Applicable □ Not Applicable
Amount Incurred Amount Incurred
Type of Related
Lessee Name during the Current during the Previous
Transaction
Period Period
Tibet Meihua Charity Foundation Donation 1,500,000.00 3,500,000.00
Total 1,500,000.00 3,500,000.00
(1). Items Receivable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Item Name Related Party Bad Debt Bad Debt
Book Balance Book Balance
Reserves Reserves
Accounts Tongliao Desheng Bio-tech Co.,
Receivable Ltd.
(2). Items Payable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Name Related Party Ending Book Balance Beginning Book Balance
Contract Liabilities Tongliao Desheng Bio-tech Co., Ltd. 923,469.49 1,651,503.01
Other Current Liabilities Tongliao Desheng Bio-tech Co., Ltd. 120,051.03 214,695.39
(3). Other Items
□Applicable Not Applicable
□Applicable Not Applicable
□Applicable Not Applicable
XV.Share-based Payments
(1).Details
□Applicable Not Applicable
(2).Stock options or other equity instruments outstanding at the end of the period
□Applicable Not Applicable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Equity-settled share-based payment recipients
Methods for Determining the Fair Value of Equity Instruments on the
Closing Price on the Grant Date
Grant Date
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Significant Parameters for Determining the Fair Value of Equity
Instruments on the Grant Date
Estimation Based on the Actual Quantity of
Basis for Determining the Quantity of Exercisable Equity Instruments
Restricted Stock Recipients
Reasons for Significant Differences between Estimates for the Current
--
Period and Previous Period
Accumulated Amount of Share-based Payments Settled by Equity
Recorded in Capital Reserves
Other Explanations
None
□Applicable Not Applicable
□Applicable Not Applicable
□Applicable Not Applicable
□Applicable Not Applicable
XVI.Commitments and Contingencies
√Applicable □Not Applicable
Significant Commitments to External Parties as of the Balance Sheet Date and Their Nature and
Amounts
(1) Executed or Pending M&A Agreements
In November 2024, the Company’s wholly-owned subsidiary in Singapore signed a Share and
Asset Purchase Agreement with Kyowa Hakko Bio Co., Ltd. (“Kyowa Hakko”), a wholly-owned
subsidiary of Kirin Holdings Company, Limited (“Kirin Holdings”, listed on the Tokyo Stock Exchange,
stock code: 2503.T). The Singaporean company, or a special purpose vehicle (“SPV”) newly established
under the Singaporean company, acquired Kyowa Hakko’s food amino acids, pharmaceutical-grade
amino acids, and human milk oligosaccharides (HMO) business (collectively, the “Target Assets”) in
cash.
In accordance with the terms of the Share and Asset Purchase Agreement and its related
supplementary agreements, the delivery conditions stipulated in the agreement were satisfied, and the
parties completed the business handover on July 1, 2025. As agreed, the counterparty had settled its
debts prior to the closing. Based on the consideration specified in the agreement, and taking into account
the cash retention of the overseas operating entities and adjustments to working capital as of the closing
date, the final transaction consideration amounted to approximately JPY 16.8 billion (equivalent to
approximately RMB 833 million based on the exchange rate as of June 30, 2025).
As the transaction involves the transfer of equity in multiple domestic and overseas operating
entities, the related registration procedures are still underway.
(2) Status of Mortgaged Assets
Original Value Net value as of
Collateral Mortgage Certificate No.
(yuan) the end of June
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Xin (2019) Sixth Division Real
Raw Material Storage 9＃ 14,990,404.00 6,623,884.60
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Raw Material Storage 8＃ 14,201,059.00 6,275,092.82
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Raw Material Storage 7＃ 13,514,204.00 5,971,589.06
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Raw Material Storage 6＃ 13,583,081.00 6,002,024.10
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Raw Material Storage 4＃ 13,742,814.00 6,072,605.90
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Raw Material Storage 1＃ 20,163,386.00 8,394,069.92
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Raw Material Storage 5＃ 13,503,165.00 5,966,710.98
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Raw Material Storage 3＃ 17,435,333.00 7,704,237.81
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Raw Material Storage 2＃ 18,996,456.00 7,908,273.87
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Drying and Screening Warehouse 307,552.00 135,899.73
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Drying Workshop Heater Room 2＃ 529,135.00 233,811.70
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Drying Workshop Heater Room 1＃ 516,159.00 228,077.74
Estate Ownership No. 0009813
Xin (2019) Sixth Division Real
Solid Material Warehouse 1 13,079,741.00 5,445,130.15
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Solid Material Warehouse 2 10,996,312.00 4,630,979.54
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Finished Product Warehouse 1# 10,717,243.00 4,735,681.78
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Finished Product Warehouse 2# 10,577,682.00 4,674,013.34
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Finished Product Warehouse 3# 10,701,563.00 4,728,753.37
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
By-product Warehouse 3#Warehouse 10,866,449.00 4,801,612.05
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
By-product Warehouse 2#Warehouse 11,247,592.00 4,970,029.62
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
By-product Warehouse 1#Warehouse 10,997,633.00 4,578,343.25
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Xanthan Gum Alcohol Distillation Workshop 8,365,265.13 5,111,398.84
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Xanthan Gum Extraction Workshop 16,923,344.19 7,866,014.93
Estate Ownership No. 0009810
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Xin (2019) Sixth Division Real
Xanthan Gum Transformer Room 1,434,516.48 664,055.61
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Protein Separation Workshop 14,058,624.73 6,031,217.59
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Natamycin Workshop 8,231,315.42 4,162,821.06
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Five-effect Evaporator Workshop 6,933,282.00 2,879,183.35
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Raw Material Sugar Screening Warehouse No. 2 634,154.00 279,659.31
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Raw Material Soaking Workshop 29,640,460.00 13,659,710.35
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Raw Material Sugar By-product Packaging Floor 17,799,378.01 7,424,661.19
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Raw Material Sugar Purification Workshop 14,646,936.25 6,882,105.16
Estate Ownership No. 0009810
Raw Material Sugar Distribution and Air Xin (2019) Sixth Division Real
Compression Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Raw Material Sugar Glucose Workshop 37,794,396.15 15,748,155.28
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Raw Material Sugar Screening Warehouse 1 412,800.00 182,043.18
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Raw Material Sugar Circulating Pump Room 3,186,753.00 1,405,344.66
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Raw Material Main Workshop 59,323,738.89 25,830,452.38
Estate Ownership No. 0009810
Xin (2019) Sixth Division Real
Lysine 4#Gas Distribution Station 772,826.00 340,813.01
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Lysine 35KV Substation 1,465,463.00 646,262.88
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Lysine Circulating Pump Room 2,500,247.30 1,261,802.87
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Xanthan Gum Power Workshop 2,222,388.00 958,210.28
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Xanthan Gum Fermentation Workshop 14,254,682.52 9,612,663.85
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Nucleotide Extraction Workshop 30,815,812.46 14,159,337.92
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Compound Fertilizer2＃Gas Distribution Station 580,671.00 256,073.59
Estate Ownership No. 0009809
Heating Station Steam-driven Air Compressor Xin (2019) Sixth Division Real
Room Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Heating Station Circulating Pump Room 1,196,729.00 528,804.81
Estate Ownership No. 0009809
Glutamic Acid Pump Room Xin (2019) Sixth Division Real 1,893,406.00 786,274.65
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Glutamic Acid Freezing Station 8,183,385.00 3,398,313.45
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Glutamic Acid Hydrolysis Workshop 5,212,818.96 2,168,486.54
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Glutamic Acid Extraction Workshop 28,462,914.44 12,367,528.22
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Glutamic Acid 35KV Substation 799,965.56 353,216.21
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Glutamic Acid Fermentation Workshop 17,715,647.28 7,391,784.09
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Xanthan Gum Pump Room 4,114,910.00 1,774,195.15
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Sulfuric Acid Pump Room (Glutamic Acid ) 1,210,180.00 501,759.29
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Serine 3＃Gas Distribution Station 609,865.00 268,948.06
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Serine Pump Room 2,629,842.00 1,159,749.19
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Serine Fermentation Workshop 17,693,098.55 7,384,232.84
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Serine Ingredients 13,096,211.83 5,784,604.99
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Serine Extraction Workshop 8,510,956.00 3,487,005.31
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Lysine Power Workshop 4,385,976.00 1,934,197.10
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Lysine Fermentation Workshop 40,377,343.73 17,865,375.26
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Lysine Extraction Workshop 67,382,586.50 30,034,047.35
Estate Ownership No. 0009809
Nucleotide Synthesis into Phosphorous Xin (2019) Sixth Division Real
Trichloride Workshop Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Nucleotide Refining Workshop 13,480,692.34 6,236,044.71
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Nucleotide Alcohol Tank Area Pump Room 224,782.09 103,477.94
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Nucleotide Alcohol Recovery Workshop 2,363,728.50 1,139,295.79
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Nucleotide Pump Room 4,419,390.13 2,024,884.87
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Nucleotide Fermentation Workshop 22,545,342.65 10,329,869.77
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Nucleotide Synthesis Workshop 28,375,495.02 13,226,913.51
Estate Ownership No. 0009809
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Xin (2019) Sixth Division Real
Nucleotide Utility Building 12,850,393.06 6,200,373.80
Estate Ownership No. 0009809
Xin (2019) Sixth Division Real
Raw Material Weighing Room 903,725.00 376,223.19
Estate Ownership No. 0009811
Xin (2019) Sixth Division Real
Power Distribution Room 430,830.00 189,994.35
Estate Ownership No. 0009811
Xin (2019) Sixth Division Real
Rainwater Pump Room 1,506,087.00 664,178.02
Estate Ownership No. 0009811
Subtotal 835,380,494.73 373,067,063.83
Land Use Rights Xin (2019) Sixth Division Real
Estate Ownership No. 0009811
Land Use Rights Xin (2019) Sixth Division Real
Estate Ownership No. 0009809
Land Use Rights Xin (2019) Sixth Division Real
Estate Ownership No. 0009810
Land Use Rights Xin (2019) Sixth Division Real
Estate Ownership No. 0009813
Subtotal 36,898,603.23 26,785,445.73
Total 872,104,683.64 420,235,253.56
(1). Significant Contingencies as of the Balance Sheet Date
Applicable □ Not Applicable
Litigation related to the Original Dalian Hanxin Bio-Pharmaceutical Co., Ltd.
As stipulated in the Equity Transfer Agreement signed by Lhasa Meihua Biological Investment
Holding Co., Ltd., a wholly-owned subsidiary of the Company, to transfer 100% of the equity held in the
Dalian Hanxin Bio-Pharmaceutical Co., Ltd.. (now known as AIM Honesty Biopharmaceutical Co., Ltd.,
hereinafter referred to as "AIM Honesty") to Liaoning AIM Biological Vaccine Technology Group Co.,
Ltd. (now known as AIM Vaccine Co., Ltd.), Lhasa Meihua Biological Investment Holding Co., Ltd.
undertakes that except for the liabilities expressly recorded in the audit report and financial statements
provided to the acquirer, and liabilities that were abnormally incurred by AIM Honesty and its
subsidiaries in the normal course of business after the audit base date and have been disclosed to the
acquirer, AIM Honesty and its subsidiaries have no other debts or contingent debts, and agrees that in
the event of a breach of the commitment, Lhasa Meihua should bear the compensation liability for all
direct or indirect economic losses suffered by other parties involved due to the breach. In accordance
with the above provisions specified in the Equity Transfer Agreement, the Company has already fulfilled
some compensation obligations in advance. Please refer to the Company's previous annual reports for
details.
Lhasa Meihua Biological Investment Holding Co., Ltd. (hereinafter referred to as “Lhasa Meihua”),
a subsidiary of the Company, received a Notice of Debt Repayment issued by AIM Honesty on October
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Court of Dalian, Liaoning Province, Kunming Sunshine Measurement and Control Technology Co., Ltd.
(hereinafter referred to as "Sunshine Measurement and Control") provided guarantee for the loan under
the RMB Loan Contract, LJZ No. DL1114010272 signed with Dalian Branch, Bank of Jilin Co., Ltd. on
behalf of AIM Honesty, with the No. 17-1-3 and 17-2 Land and five properties with right of use above
the land in Kunming Economic and Technological Development Zone as collateral. The
above-mentioned mortgaged land and properties were judicially auctioned on April 19, 2018, and the
auction proceeds were used to repay the bank loans. Based on this, Sunshine Measurement and Control
has the right to recover the debt from AIM Honesty.
According to relevant agreements such as the Equity Transfer Agreement of Dalian Hanxin
Bio-Pharmaceutical Co., Ltd. signed between Lhasa Meihua, a subsidiary of the Company, and AIM
Vaccine Co., Ltd., Lhasa Meihua is responsible for realizing the non-operating creditor’s rights of AIM
Honesty related to its former shareholder Tibet Yiyuan Industry Co., Ltd. (hereinafter referred to as
"Tibet Yiyuan") and clearing the debts. Based on this, AIM Honesty issued the aforementioned Notice
of Debt Repayment to Lhasa Meihua. According to the relevant agreements such as the Equity Transfer
Agreement signed between Lhasa Meihua and AIM Honesty's former shareholder Tibet Yiyuan, Tibet
Yiyuan is responsible for realizing the non-operating creditor’s rights of AIM Honesty and clearing the
debts. Based on the agreements mentioned above, all parties involved have reached a consensus
agreement that Tibet Yiyuan and its affiliates will assume all the debts and their interest generated based
on the recovery rights.
In December 2021, according to materials such as the copy of the lawsuit and the notice of response
to action filed by Kunming Sunwise Co., Ltd. (hereinafter referred to as "Sunwise"), a company holding
Sunshine Measurement and Control for contract disputes [The Intermediate People's Court of Kunming,
Yunnan Province (2021) Y01MC No. 4275] delivered by the Intermediate People's Court of Kunming,
Yunnan Province, Sunwise, as a shareholder of Sunshine Measurement and Control, was declared
bankrupt by the Intermediate People's Court of Kunming, Yunnan Province on March 15, 2019, and
Yunnan Zhenxu Law Firm was appointed as the administrator by the court. The administrator claimed
that AIM Honesty had not pursued recovery from Sunshine Measurement and Control since it fulfilled
its guarantee obligations and demanded AIM Honesty to repay the indemnity and pay the related interest
and funds usage fees to Sunshine Measurement and Control. According to the agreements mentioned
above, the Company have reached a consensus agreement with all related parties that Tibet Yiyuan and
its affiliates will assume all the debts and their interest generated based on the recovery rights.
On October 18, 2022, the Intermediate People's Court of Kunming made the following judgments:
Party Kunming Sunshine Measurement and Control Technology Co., Ltd. within ten days from the
effective date of the judgment; 2) Defendant AIM Honesty Biopharmaceutical Co., Ltd. shall pay the
fund usage fees on the basis of RMB 28,967,179.55 from August 17, 2021 to the date of repayment
calculated according to the loan prime rate published by the National Interbank Funding Center within
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
ten days from the effective date of the judgment; 3) Other litigation requests from the plaintiff Kunming
Sunwise Co., Ltd. were dismissed. Both the plaintiff and the defendant have submitted appeals.
On June 30, 2023, the Higher People's Court of Yunnan Province issued a judgment with the
document number of [(2023) YMZ No. 324], ruling to dismiss the appeal and uphold the original
judgment. AIM Honesty subsequently filed a petition for retrial with the Supreme People’s Court. On
March 26, 2024, the Supreme People’s Court issued (2023) ZGFMS No.1737, deciding that: 1) The case
would be heard by the Supreme People’s Court; 2) Execution of the original judgment would be
suspended during the retrial process. The case was heard by the Supreme People’s Court on October 10,
As of June 30, 2025, based on the judgment issued by the Yunnan High People’s Court, the
Company has recognized a provision for compensation and related interest totaling RMB 32,948,103.32.
Financial Impact
Refer to 5(4) - Status of Related Guarantees in Section XIV for details of guarantees provided to
related parties.
Except for the above contingencies, the Company has no other significant contingencies that
require disclosure but have not been disclosed as of June 30, 2025.
(2). Explanation should be also provided even if the Company has no significant contingencies
that require disclosure:
□Applicable Not Applicable
□Applicable Not Applicable
XVII.Matters after the Balance Sheet Date
□Applicable Not Applicable
□Applicable Not Applicable
□Applicable Not Applicable
□Applicable Not Applicable
XVIII.Other Significant Matters
(1). Retrospective Restatement
□Applicable Not Applicable
(2). Prospective Application
□Applicable Not Applicable
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1). Exchange of Non-monetary Assets
□Applicable Not Applicable
(2). Other Asset Swap
□Applicable Not Applicable
□Applicable Not Applicable
□Applicable Not Applicable
(1). Determination Basis and Accounting Policies for Reporting Segments
□Applicable Not Applicable
(2). Financial Information of Reporting Segments
□Applicable Not Applicable
(3). If the company does not have reporting segments, or cannot disclose the total assets and
liabilities of each reporting segment, the reasons should be explained.
Applicable □ Not Applicable
The Company determines operating segments based on internal organizational structure,
management requirements, and internal reporting systems. The operating segments of the Company refer
to components that meet the following conditions:
(1) The component generates revenue and incurs expenses in its daily activities;
(2) The management can evaluate the operating results of the component on a regular basis to
decide the resource allocation for it and assess its performance;
(3) Relevant accounting information such as financial status, operating results, and cash flows of
the component can be obtained.
The Company determines reporting segments based on operating segments, and an operating
segment is determined as a reporting segment if it meets one of the following conditions:
(1) The operating segment's revenue accounts for 10% or more of the total revenue of all segments;
(2) The absolute amount of segment profit (or loss) for the segment accounts for 10% or more of
either the total profit of profitable segments or the total loss of loss-making segments, whichever is
greater.
The Company has not disclosed segment reports mainly because: the Company's sales revenue and
gross profit are disclosed based on the segment basis of daily operating management. Additionally, items
such as management expenses, financial expenses and taxes on the income statement and assets and
liabilities cannot be split and disclosed according to segment requirements.
(1) Tongliao Meihua and Xinjiang Meihua, subsidiaries of the Company, produce multiple products
across several segments. Therefore, management expenses, financial expenses, income tax, and other
items on the income statement, including corresponding items of the Company, cannot be attributed to
specific products;
(2) The Company is a capital-intensive manufacturing enterprise. Although it produces various
products, the manufacturing processes are similar, with many fixed assets being shared. Some
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
production lines also produce multiple kinds of products throughout the year. Hence, the fixed assets
used for production cannot be distinguished by segments.
(3) Apart from production lines, the Company has numerous shared facilities such as heating
stations, sewage treatment, and basic chemical production lines. The products and services provided by
these facilities are shared among multiple segments, making it impossible to distinguish them by
segments.
(4) The Company's debt financing cannot be specifically allocated to specific business segments.
Therefore, segment information is not presented in this financial statement.
(4). Other Explanations
□Applicable Not Applicable
□Applicable Not Applicable
□Applicable Not Applicable
XIX. Notes to Main Items on the Parent Company’s Financial Statement
(1).Disclosure by Aging
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending Book Balance Beginning Book Balance
Within 1 year (Including 1 year) 263,199,770.95 170,567,658.48
Within 1 year 263,199,770.95 170,567,658.48
Over 3 years
Over 5 years
Total 263,199,770.95 170,567,658.48
(2).Classified Disclosure by Bad Debt Provision Methods
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Book Balance Bad Debt Reserves Book Balance Bad Debt Reserves
Category
Ratio Provision Book Value Ratio Provision Book Value
Amount Amount Amount Amount
(%) Ratio(%) (%) Ratio(%)
Provisions for Bad Debt
Reserves on an
Individual-item Basis
Including:
Provisions for Bad Debt
Reserves on a Portfolio 263,199,770.95 / 12,959,206.83 / 250,240,564.12 170,567,658.48 / 8,013,876.71 / 162,553,781.77
Basis:
Including:
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Including: Related
Party Portfolio within
the Consolidation
Scope
Aging Analysis
Portfolio
Total 263,199,770.95 / 12,959,206.83 / 250,240,564.12 170,567,658.48 / 8,013,876.71 / 162,553,781.77
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
√Applicable □Not Applicable
Items for provisions on a portfolio basis: Aging Analysis Portfolio
Unit: Yuan Currency: RMB
Ending Balance
Name
Book Balance Bad Debt Reserves Provision Ratio (%)
Within 1 year 259,184,136.51 12,959,206.83 5.00
Total 259,184,136.51 12,959,206.83 5.00
Explanation of Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
Basis for Staging and Provision Ratios for Bad Debt Reserves
Explanation of significant changes in the book balance of accounts receivable with changes in loss
reserves during the current period:
□Applicable Not Applicable
(3).Status of Bad Debt Reserves
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount of Changes in the Current Period
Recovered
Category Ending Balance Written Other Ending Balance
Provision or
off Changes
Reversed
Bad debt provision on an
individual basis
Bad debt provision on a
portfolio basis
Including: Related Party
Portfolio within the
Consolidation Scope
Aging Analysis Portfolio 8,013,876.71 4,945,330.12 12,959,206.83
Total 8,013,876.71 4,945,330.12 12,959,206.83
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable Not Applicable
Other Explanations
None
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(4).Status of Accounts Receivable Actually Written Off during the Current Period
□Applicable Not Applicable
Including write-off of significant accounts receivable
□Applicable Not Applicable
Explanation of write-off of accounts receivable:
□Applicable Not Applicable
(5).Overview of Accounts Receivable and Contract Assets Ranking Top Five in Ending Balances
Aggregated by Debtors
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Proportion in the
Total Ending
Ending Balance
Ending Balance Ending Balance Balance of Ending Balance
of Accounts
Company Name of Accounts of Contract Accounts of Bad Debt
Receivable and
Receivable Assets Receivable and Reserves
Contract Assets
Contract Assets
(%)
First 76,274,260.95 76,274,260.95 28.98 3,813,713.05
Second 47,283,093.28 47,283,093.28 17.96 2,364,154.66
Third 23,366,002.12 23,366,002.12 8.88 1,168,300.11
Fourth 23,123,063.43 23,123,063.43 8.79 1,156,153.17
Fifth 19,680,440.00 19,680,440.00 7.48 984,022.00
Total 189,726,859.78 189,726,859.78 72.08 9,486,342.99
Other Explanations
None
Other Explanations:
Applicable □ Not Applicable
At the end of the period, there were no accounts receivable derecognized due to the transfer of
financial assets.
At the end of the period, there were no balances of assets and liabilities formed by the transfer of
accounts receivable and continued involvement.
Presentation of Items
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Ending Balance Beginning Balance
Interest Receivable
Dividends Receivable 200,000,000.00 1,000,000,000.00
Other Receivables 359,896,267.01 665,966,380.53
Total 559,896,267.01 1,665,966,380.53
Other Explanations:
□Applicable Not Applicable
Interest Receivable
(1).Classification of Interest Receivable
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(2).Significant Overdue Interest
□Applicable Not Applicable
(3).Classified Disclosure by Bad Debt Provision Methods
□Applicable Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable Not Applicable
(4).Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
(5).Status of Bad Debt Reserves
□Applicable Not Applicable
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable Not Applicable
Other Explanations:
None
(6).Status of Interest Receivable Actually Written Off during the Current Period
□Applicable Not Applicable
Including write-off of significant interest receivable
□Applicable Not Applicable
Write-off Explanation:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Dividends Receivable
(1).Dividends Receivable
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items (or Invested Units) Ending Balance Beginning Balance
Tongliao Meihua 450,000,000.00
Jilin Meihua 350,000,000.00
Hong Kong Meihua 200,000,000.00 200,000,000.00
Total 200,000,000.00 1,000,000,000.00
(2).Significant Dividends Receivable with an Aging Exceeding 1 year
□Applicable Not Applicable
(3).Classified Disclosure by Bad Debt Provision Methods
□Applicable Not Applicable
Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Explanation of Provisions for Bad Debt Reserves on an Individual-item Basis:
□Applicable Not Applicable
Provisions for Bad Debt Reserves on a Portfolio Basis:
□Applicable Not Applicable
(4).Provisions for Bad Debt Reserves based on the General Model of Expected Credit Losses
□Applicable Not Applicable
(5).Status of Bad Debt Reserves
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Including bad debts with significant amounts to be recovered or reversed during the period:
□Applicable Not Applicable
Other Explanations:
None
(6).Status of Dividends Receivable Actually Written Off during the Current Period
□Applicable Not Applicable
Including write-off of significant dividends receivable
□Applicable Not Applicable
Write-off Explanation:
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Other Receivables
(1).Disclosure by Aging
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending Book Balance Beginning Book Balance
Within 1 year (Including 1 year) 360,118,774.08 666,459,181.92
Within 1 year 360,118,774.08 666,459,181.92
Over 3 years
Over 5 years 85,892,687.00 85,842,687.00
Total 446,430,145.24 752,789,083.31
(2).Classification by Nature of Accounts
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Nature of Accounts Ending Book Balance Beginning Book Balance
Intercompany Account Current 351,236,583.26 651,382,152.78
Deposits 470,000.00 600,000.00
Receivables for Land and Real Estate 85,672,687.00 85,672,687.00
Others 1,239,722.87 782,060.81
Export Tax Refunds receivable 7,811,152.11 14,352,182.72
Total 446,430,145.24 752,789,083.31
(3).Provision for Bad Debt Reserves
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Phase 1 Phase 2 Phase 3
Expected Credit
Expected Credit Losses
Expected Credit Losses for the
Bad Debt Reserves for the entire Duration Total
Losses over the entire Duration
(with Credit
Next 12 Months (without Credit
Impairment)
Impairment)
Balance as of January 1, 2025 1,150,015.78 85,672,687.00 86,822,702.78
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Balance as of January 1, 2025
during the Current Period
--Transferred to Phase 2
--Transferred to Phase 3
-- Reversed to Phase 2
--Reversed to Phase 1
Provision for the Current
Period
Reversal for the Current
Period
Write-off for the Current
Period
Write-off for the Current
Period
Other Changes
Balance as of June 30, 2025 861,191.23 0.00 85,672,687.00 86,533,878.23
Basis for Staging and Provision Ratios for Bad Debt Reserves
None
Explanation of significant changes in the book balance of other receivables with changes in loss reserves
during the current period:
□Applicable Not Applicable
Basis for amount of provisions for bad debt reserves and the assessment of significant increase in credit
risk of financial instruments:
□Applicable Not Applicable
(4).Status of Bad Debt Reserves
□Applicable Not Applicable
Including bad debt reserves with significant amount reversed or recovered during the current period:
□Applicable Not Applicable
Other Explanations:
None
(5).Status of Other Receivables Actually Written Off during the Current Period
□Applicable Not Applicable
Including write-off of significant other receivables:
□Applicable Not Applicable
Explanation of write-off of other receivables:
□Applicable Not Applicable
(6).Overview of Other Receivables Ranking Top Five in Ending Balances Aggregated by Debtor
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Proportion in
Total Amount of
Ending Ending Balance of
Company Name Ending Balance Nature of Accounts Aging
Balances of Bad Debt Reserves
Other
Receivables (%)
Jilin Meihua Amino Intercompany Account Within 1
Acid Co., Ltd. Current year
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Bazhou Metal Glass
Receivables for Land Over 5
Furniture Industrial 85,672,687.00 19.19 85,672,687.00
and Real Estate years
Park
Tibet Lhasa Economic
and Technological
Development Zone Within 1
Taxation Bureau, State year
Taxation
Administration
Within 1
Bazhou Work Injury year
Insurance Management 24,800.39 0.01 Others 1-2 years 2,480.04
Office 36,701.22 0.01 2-3 years 11,010.37
Langfang Meihua
Intercompany Account Within 1
Biotechnology 910,000.00 0.20
Current year
Development Co., Ltd.
Total 445,889,051.05 99.88 / / 86,180,326.30
(7).Presented Under Other Receivables Due to Centralized Fund Management
□Applicable Not Applicable
Other Explanations:
Applicable □ Not Applicable
There were no other receivables involving government grants at the end of the period.
There were no other receivables derecognized due to transfer of financial assets at the end of the
period.
There were no amounts of assets and liabilities formed due to the transfer of other receivables and
continued involvement.
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Ending Balance Beginning Balance
Items
Book Balance Impairment Reserves Book Value Book Balance Impairment Reserves Book Value
Investment in Subsidiaries 7,637,915,728.14 7,637,915,728.14 7,637,915,728.14 7,637,915,728.14
Investment in Associates and Joint Ventures
Total 7,637,915,728.14 7,637,915,728.14 7,637,915,728.14 7,637,915,728.14
(1).Investment in Subsidiaries
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Increase/decrease during the period
Beginning Provision
Ending balance
Beginning Balance balance of for Ot Ending Balance
Invested Units Additional Investment of impairment
(Book Value) impairment impairment he (Book Value)
investment reduction provision
provision during the rs
period
Tongliao Meihua Biotech Co., Ltd. 1,955,251,411.24 1,955,251,411.24
Xinjiang Meihua Amino Acid Co., Ltd. 2,521,485,877.51 2,521,485,877.51
Langfang Meihua Seasoning Co., Ltd. 252,167,723.87 252,167,723.87
Langfang Meihua Bio-Technology Development Co., Ltd. 72,751,138.20 72,751,138.20
Lhasa Meihua Biological Investment Holding Co., Ltd. 800,000,000.00 800,000,000.00
Meihua Group International Trading (Hong Kong) Limited 6,277,900.00 6,277,900.00
Jilin Meihua Amino Acid Co., Ltd. 2,029,666,677.32 2,029,666,677.32
Zhuhai Hengqin Meihua Bio-Technology Co., Ltd. 315,000.00 315,000.00
Total 7,637,915,728.14 7,637,915,728.14
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(2).Investment in Associates and Joint Ventures
□Applicable Not Applicable
(3).Impairment Testing of Long-term Equity Investments
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
(1). Status of Operating Revenues and Operating Costs
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during the Current Amount Incurred during the Previous
Items Period Period
Revenues Costs Revenues Costs
Main Business 8,393,607,038.55 7,990,471,091.37 8,047,705,223.92 7,761,526,233.25
Other Business 7,084,280.12 6,691,245.41 8,312,746.27 8,212,237.30
Total 8,400,691,318.67 7,997,162,336.78 8,056,017,970.19 7,769,738,470.55
(2). Decomposition Information of Operating Revenues and Operating Costs
□Applicable Not Applicable
Other Explanations:
□Applicable Not Applicable
(3). Explanation of Performance Obligations
□Applicable Not Applicable
(4). Explanation of Allocation to Remaining Performance Obligations
□Applicable Not Applicable
(5). Significant Contract Changes or Significant Adjustments to Transaction Prices
□Applicable Not Applicable
Other Explanations:
None
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount Incurred during Amount Incurred during
Items
the Current Period the Previous Period
Investment Income from Long-term Equity Investments
Accounted for by the Cost Method
Investment Income from Long-term Equity Investments
Accounted for by the Equity Method
Investment Income from the Disposal of Long-term Equity
Investments
Investment Income from Financial Assets Held for Trading
during the Holding Period
Dividend Income from Other Equity Instrument Investments
during the Holding Period
Dividend Income from Debt Investments during the Holding
Period
Dividend Income from other Debt Investments during the
Holding Period
Investment Income from the Disposal of Financial Assets Held
for Trading
Investment Income from the Disposal of Other Equity
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
Instrument Investments
Investment Income from the Disposal of Debt Investments
Investment Income from the Disposal of Other Debt Investments -111,579.15
Debt Restructuring Gains
Total 17,655,487.70 8,196,630.82
Other Explanations:
None
□Applicable Not Applicable
XX. Supplementary Information
Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Items Amount Explanation
Profits or losses from disposal of non-current assets, including the portion offset
-6,005,098.60
against impairment provisions already accrued
Government grants recorded in the profit or loss for the current period, excluding
those closely related to the Company's normal operating activities, complying with
national policies, entitled according to specified standards, and having a continuous
impact on the Company's profit or loss
Profits or losses arising from fair value changes of financial assets and financial
liabilities held by non-financial enterprises, as well as profits or losses arising from the
disposal of financial assets and financial liabilities, excluding the effective hedging
business related to the Company’s normal operating activities
Fund usage fees charged to non-financial enterprises and recorded in the profit or loss
for the current period
Profits or losses from entrusting others to invest or manage assets
Profits or losses from loans entrusted to others
Asset losses incurred due to force majeure, such as natural disasters
Reversal of impairment reserves for receivables undergoing individual impairment
testing
Income generated when the investment costs borne by the Company in acquisition of
subsidiaries, associates, and joint ventures are less than the fair value of identifiable
net assets entitled to the Company when the investment is acquired
Net profits or losses of subsidiaries generated from the beginning of the period to the
date of consolidation through enterprise merger under the same control
Profits or losses from non-monetary asset exchanges
Profits or losses from debt restructuring
One-time expenses incurred by enterprises due to discontinuation of related operating
activities, such as employee resettlement expenses, etc.
One-time impact on profit or loss for the current period due to adjustments to tax,
accounting, and other laws and regulations
Stock-based payment expenses recognized one-time due to cancellation or
modification of equity incentive plans
Profits or losses from changes in the fair value of employee compensation payable
Meihua Holdings Group Co., Ltd. 2025 Semi-Annual Report
after the exercise date for share-based payments settled by cash
Profits or losses from changes in the fair value of investment properties measured
subsequently using the fair value model
Income from transactions with significant price misalignment
Profits or losses from contingencies unrelated to the Company's normal operating
-509,941.40
activities
Custodian fee income from entrusted operations
Other non-operating revenues and expenditures not mentioned above -275,185.62
Other profit or loss items meeting the definition of non-recurring profits and losses
Less: Income tax impact 23,801,666.18
Minority shareholders’ equity impact (after tax)
Total 139,587,012.49
For items not listed in the Explanatory Announcement for Information Disclosure by Companies that
Issue Securities to the Public No. 1 - Non-recurring Profits and Losses but considered as non-recurring
profits and losses with significant amounts, as well as items defined as recurring profits and losses in the
Explanatory Announcement for Information Disclosure by Companies that Issue Securities to the Public
No. 1 - Non-recurring Profits and Losses, the Company should provide reasons for such classification.
□Applicable Not Applicable
Other Explanations
□Applicable Not Applicable
Applicable □ Not Applicable
Weighted Earnings per Share
Profits during the Reporting Period Average Return Basic Earnings Diluted Earnings
on Equity (%) per Share per Share
Net profit attributable to ordinary shareholders of the
Company
Net profit attributable to ordinary shareholders of the
Company after deducting non-recurring profits and losses
□Applicable Not Applicable
□Applicable Not Applicable
Chairman: Wang Aijun
Date Approved by the Board of Directors for Submission: August 19, 2025
Revision Information
□Applicable Not Applicable
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