Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Semiannual Report of 2026
[August 26, 2026]
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section I Important Information, Contents, and Definitions
The Company's Board of Directors and the directors and officers ensure
that the content of the semiannual report is true, accurate, and complete
without any false record, misleading statement, or significant omission and
bear individual and joint and several legal liability.
Wang Huan, the principal of the Company, Fu Chuanhai, the person in
charge of accounting, and Lei Lixin, the person in charge of the accounting
body (accounting supervisor), declare that the financial report in this
semiannual report is true, accurate, and complete.
All directors attended the Board meeting at which this semiannual report
was considered.
The Company describes potential risks in its operations and
countermeasures in "X. Risks faced by the company and countermeasures" in
Section III, "The Management's Discussion and Analysis." Investors are
reminded to pay attention to the relevant content.
This report is prepared in Chinese and English. Where the Chinese and
English texts are interpreted in different ways, the Chinese text shall prevail.
During the reporting period, there is no significant risk that has a
substantial impact on the production and business operation of the company.
Investors are requested to pay attention and read it carefully.
The Company plans not to distribute cash dividends, not to distribute
bonus shares, and not to convert reserves into share capital.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Contents
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
List of Documents for Reference
(I) Financial statements with the signatures of the principal of the Company, the person in charge of accounting, and the
person in charge of the accounting body and affixed with the Company’s seal.
(II) The originals of all corporate documents and the manuscripts of all announcements disclosed during the Reporting Period.
(III) The text of the company's 2026 semi-annual report containing the signature of the company's responsible person.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Definitions
Term Refers to Content
The Company, Company Refers to Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Shandong State-owned Assets Investment Holdings Co.,
Shandong Guotou Refers to
Ltd.
This report Refers to The Semiannual Report of 2026 prepared by the Company
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section II Company Introduction and Key Financial Indicators
I.Company’s Information
Short stock name Zhonglu B Stock code 200992
Short stock name before
None
change (if any)
Exchange where the stocks
Shenzhen Stock Exchange
are listed
Chinese name 山东省中鲁远洋渔业股份有限公司
Short Chinese name (if any) 中鲁远洋
Foreign name (if any) Shandong Zhonglu Oceanic Fisheries Company Limited
Acronym of the foreign name
ZLYY
(if any)
Legal representative Wang Huan
II. Contact Person and Contact Information
Board Secretary Securities Affairs Representative
Name Yu Xiaoqiang Tang Yuntao
Address Center, No. 31 Xianxialing Road, Center, No. 31 Xianxialing Road,
Laoshan District, Qingdao, Shandong Laoshan District, Qingdao, Shandong
Tel 0532-55717968 0532-55715968
Fax 0532-55719258 0532-55719258
Email zl000992@163.com zl000992@163.com
III.Other information
Has the registered address, office address, postal code, website, email address, etc. of the company changed during the reporting
period
□Applicable ? Not applicable
The Company's registered address and office address, as well as its postal code, website, and email address remained unchanged
during the reporting period. For details, please refer to the 2025 Annual Report.
Has the information disclosure and preparation location changed during the reporting period
□Applicable ? Not applicable
The website and media name and website of the stock exchange where the company discloses its semi-annual report, and the
preparation location of the company's semi-annual report remain unchanged during the reporting period, as detailed in the 2025
annual report.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Has the information disclosure and preparation location changed during the reporting period
□Applicable ?Not applicable
IV. Key Accounting Data and Financial Indicators
Whether the Company is required to make retroactive adjustments or restate the accounting data for previous years
□Yes ? No
Increase/decrease of current
reporting period compared
Current reporting period Same period of previous year
with the same period of
previous year
Operating revenue (RMB) 410,581,705.72 677,380,077.49 -39.39%
Net profits attributable to the
Company’s shareholders -36,574,394.03 -13,337,046.26 -174.23%
(RMB)
Net profits attributable to the
Company’s shareholders after
-39,026,062.11 -15,340,155.55 -154.40%
deducting nonrecurring items
(RMB)
Net cash flows from operating
-31,864,804.21 82,605,264.02 -138.57%
activities (RMB)
Base earnings per share
-0.1375 -0.0501 -174.45%
(RMB/share)
Diluted earnings per share
-0.1375 -0.0501 -174.45%
(RMB/share)
Weighted average return on
-3.41% -1.26% -2.15%
equity
Increase/decrease at the end
End of current reporting of current reporting period
End of previous year
period compared with that at end of
previous year
Total assets (RMB) 2,102,157,623.14 2,168,213,094.94 -3.05%
Net assets attributable to the
Company’s shareholders 1,051,207,294.29 1,094,666,215.62 -3.97%
(RMB)
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
accounting standards and Chinese accounting standards
□Applicable ? Not applicable
For the Company, there was no difference in net profits and net assets in the financial report disclosed both according to
international accounting standards and Chinese accounting standards during the Reporting Period.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
accounting standards and Chinese accounting standards
□Applicable ? Not applicable
For the Company, there was no difference in net profits and net assets in the financial report disclosed both according to overseas
accounting standards and Chinese accounting standards during the Reporting Period.
VI. Non-recurring profit and loss items and amounts
? Applicable □Not applicable
Unit: RMB
Item Amount Remark
Gains or losses on the disposal of non-
current assets (including the write-off of -155,930.64
accrued asset impairment provisions)
Government grants recognized in profit
or loss (excluding government grants that
are closely related to the Company’s
business, meet the standards of national
policies, are received in accordance with
established standards, and have a
continuous impact on the Company’s
profit or loss)
Trustee income from trusteeship 849,056.58
Other non-operating incomes and
-1,597.73
expenditures than the above
Less: amount of the effect of the income
tax
amount of the effect of the minority
interest (after tax)
Total 2,451,668.08
Details of other profit/loss items that conform to the definition of nonrecurring items:
□Applicable ? Not applicable
For the Company, there was no detail of other profit/loss items that conform to the definition of nonrecurring items.
Explanation of the situation where the nonrecurring items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items are defined as recurring items
□Applicable ? Not applicable
The Company had no situation where it defined the nonrecurring items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items as recurring items.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section III The Management’s Discussion and Analysis
I. Company’s Main Businesses during the Reporting Period
During the Reporting Period, the Company’s primary businesses included long range fishing, marine transport, and cold storage
processing and trading. These businesses supported and promoted each other, forming a complete industrial chain.
During the Reporting Period, the Company had 27 long range fishing boats, including 14 large ultra-low temperature tuna
longliners, nine (sets of) large tuna seiners, two medium-sized trawlers, and two squid fishing boats, which operated in the Indian
Ocean, the Atlantic, and the Pacific, respectively. Relying on the business strategy of "stabilizing, expanding, and upgrading," the
fleet consolidated its operational advantages in the Atlantic, expanded the space for longline projects, and improved the catch of
purse seine in the central and western Pacific.
During the Reporting Period, the Company's eight large marine transport vessels featured excellent performance, strict
management, and standard services, making them suitable for the long range frozen and refrigerated transport of aquatic products,
meat, poultry, vegetables, and fruits. Their service areas covered some areas and ports of the central and western Pacific, the
Indian Ocean, the Atlantic, North America, and South America. Affected by the combined factors of concentrated dry-docking and
overhaul in the first half of the year and the temporary sluggishness of the refrigerated transport market, the overall vessel
departure rate and transport volume declined. Currently, all vessels have completed their overhauls and resumed seaworthiness. In
the second half of the year, the Company will dynamically optimize route deployment and intensify the development of cold-chain
cargo sources, striving for a steady recovery in transport capacity and operating efficiency.
During the Reporting Period, the Company successfully passed two major international food safety audits, BRCGS (Global Food
Safety Standard) and IFS (International Food Standard), and obtained the BRCGS A+ certificate and the IFS Advanced certificate,
which laid the foundation for exporting products to the EU and further expanding international markets. A trinity product co-
creation mechanism of "customer-sales-R&D" was established, integrating product development into the market and orienting it
toward the market.
Market position: the vice-presidential unit of the China Overseas Fisheries Association, the presidential unit of the Qingdao
Overseas Fisheries Association, and a leading agricultural enterprise in Qingdao.
II. Analysis of Core Competitiveness
The Company is a comprehensive and export-oriented company engaged in overseas fishing that was incorporated in July
comprehensive listed fishing company, the Company's core competitiveness lies in the following aspects: (1) Through more than
businesses, including overseas fishing, deep processing, trading, cold storage logistics, ocean shipping, and venture capital in the
modern marine industry. The Company's main businesses involve key links in the industrial chain. The businesses of the
Company's operating entities are highly associated, which meets the conditions for holistically collaborative operations. This
provides a guarantee for the Company to reform its operations and strengthen and extend the industrial chain. (2) As one of the
earliest companies engaged in overseas fishing in China, the Company started production and operations early from a high ground
with competent human resources and assets. Through years of dedicated operations, the Company has gathered a pool of
professionals specializing in the relevant fields of long range fishing. (3) The long-range fishing industry is part of China's "Belt
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
and Road" Initiative, the strategy of building a strong marine country, and part of Shandong's strategy of building a strong marine
province. There are development opportunities from the adjustment of the industrial depth. (4) The Company keeps cultivating the
global sea transport markets. It has established long-term, stable cooperation with customers and built a service brand with
distinctive "Zhonglu characteristics," thus enjoying a high reputation on the Asia-Pacific refrigerated transport market. (5) The
Company has the earliest ultra-low temperature cold storage and tuna processing plant in China, which strengthens the Company's
advantages in tuna processing and trading. (6) The Company carries out long range fishing in the Atlantic, the Pacific, and the
Indian Ocean, reaches most of the world's major ports with its ocean shipping, and covers many countries with import and export.
With the implementation of the "Belt and Road" strategy, the countries along the "Belt and Road" will have stronger trust in each
other and establish closer cooperation. In addition, the country and the governments at all levels have rolled out a suite of
development plans and industrial preference policies. All these have brought new development opportunities to the Company. The
Company will leverage the aforementioned advantages to pioneer, innovate, forge ahead, and proactively engage itself in the
conversion of old and new growth drivers. It will accelerate transformation and upgrading, vigorously extend the industrial chain,
and further improve its influence and competitiveness in domestic and even international markets.
III. Analysis of Main Businesses
Overview
Refer to “I.Company’s Main Businesses during the Reporting Period”
Year-on-year changes in major financial data
Unit: RMB
Year-on-year increase
This reporting period Same period last year Reason for change
or decrease
Mainly due to a
significant decrease in
the operating time and
production and sales
volume of long range
fishing in some sea
Operating income 410,581,705.72 677,380,077.49 -39.39% areas compared with
the same period of
previous year, and a
decrease in sales
volume of the
refrigerated processing
and trading business.
Mainly due to a
significant decrease in
the operating time and
production and sales
volume of long range
fishing in some sea
Operating costs 403,248,048.82 657,100,642.65 -38.63% areas compared with
the same period of
previous year, and a
decrease in sales
volume of the
refrigerated processing
and trading business.
Sales expenses 1,892,976.36 1,971,307.26 -3.97%
Administrative 28,370,121.32 28,243,483.54 0.45%
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
expenses
Mainly due to an
increase in net
Financial expenses 16,255,120.70 3,894,737.28 317.36%
exchange losses during
the current period.
Income tax expenses 966,105.34 1,065,757.84 -9.35%
Mainly due to a
decrease in cash
Net cash flow
received from sales of
generated from -31,864,804.21 82,605,264.02 -138.57%
goods and provision of
operating activities
labor services during
the current period.
Mainly due to
decreased expenditures
Net cash flow
on the purchase and
generated from -30,783,925.26 -73,136,184.28 57.91%
construction of fixed
investment activities
assets during the
current period.
Mainly due to a
Net cash flow decrease in cash
generated from 14,184,849.59 22,515,116.91 -37.00% received from
financing activities borrowings during the
current period.
Mainly due to an
increase in cash
Net increase in cash received from sales of
-58,754,069.16 38,150,559.41 -254.01%
and cash equivalents goods and provision of
labor services during
the current period.
Significant changes in the composition or source of profits of the company during the reporting period
□Applicable ? Not applicable
There have been no significant changes in the composition or source of profits of the company during the reporting period.
Composition of operating income
Unit: RMB
This reporting period Same period last year Year-on-year
Proportion in Proportion in increase or
Amount Amount decrease
operating revenue operating revenue
Total operating
revenue
By industry
Long range fishing 164,458,997.15 40.06% 325,580,101.79 48.06% -49.49%
Refrigerated
transport
Cold storage
processing and 237,450,802.98 57.83% 343,420,465.83 50.70% -30.86%
trading
Others 3,157,753.86 0.77% 3,657,630.81 0.54% -13.67%
Internal trade
-50,155,194.90 -12.22% -65,669,091.00 -9.69% -23.62%
offset
By product
Long range fishing 164,458,997.15 40.06% 325,580,101.79 48.06% -49.49%
Refrigerated
transport
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Cold storage
processing and 237,450,802.98 57.83% 343,420,465.83 50.70% -30.86%
trading
Others 3,157,753.86 0.77% 3,657,630.81 0.54% -13.67%
Internal trade
-50,155,194.90 -12.22% -65,669,091.00 -9.69% -23.62%
offset
By region
China 216,176,055.43 52.65% 360,903,587.31 53.28% -40.10%
Foreign countries 194,405,650.29 47.35% 316,476,490.18 46.72% -38.57%
Industries, products, or regions that account for more than 10% of the company's operating revenue or profit
? Applicable □Not applicable
Unit: RMB
Year-on-year Year-on-year Year-on-year
Gross
Operating increase/decrea increase/decrea increase/decrea
Operating costs profit
revenue se in operating se in operating se in gross
margin
revenue costs profit margin
By industry
Long range
fishing
Refrigerated
transport
Cold storage
processing and 237,450,802.98 213,274,191.85 10.18% -30.86% -35.15% 5.95%
trading
By product
Long range
fishing
Refrigerated
transport
Cold storage
processing and 237,450,802.98 213,274,191.85 10.18% -30.86% -35.15% 5.95%
trading
By region
China 216,176,055.43 204,915,212.91 5.21% -40.10% -43.06% 4.92%
Foreign
countries
When the statistical caliber of the company's main business data is adjusted during the reporting period, the company's main
business data for the most recent period adjusted based on the caliber at the end of the reporting period
□Applicable ? Not applicable
IV. Analysis of Non-main Businesses
?Applicable □ Not applicable
Unit: RMB
Amount Proportion in total profit Explanation of cause Whether sustainable
Mainly long-term equity
investment income
Investment income -291,046.67 0.76% No
accounted using the equity
method in the current period
Mainly provision for
Asset impairment -2,039,274.87 5.33% No
inventory impairment in the
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
current period
Mainly loss on scrapping of
Non-operating expenses 157,528.37 -0.41% fixed assets in the current No
period
V. Analysis of Assets and Liabilities
Unit: RMB
This reporting period end Same period last year Explanation of
Increase/Decrea
Proportion in Proportion in significant
Amount Amount se (%)
total assets total assets changes
Monetary
capital
Accounts
receivable
Inventory 458,315,899.30 21.80% 381,905,920.98 17.61% 4.19%
Investment
property
Long-term
equity 239,987.08 0.01% 441,892.08 0.02% -0.01%
investment
Fixed assets 893,074,353.16 42.48% 927,820,225.94 42.79% -0.31%
Construction in
progress
Short-term
borrowings
Contractual
liabilities
Long-term
borrowings
? Applicable □Not applicable
Proportion
Control Whether
of overseas
Specific measures to there is any
Reasons of Operation Return on assets in
content of Asset size Location guarantee significant
formation model assets the
assets asset impairment
Company’s
security risk
net assets
HABITAT
Controlling
INTERNA Vessel and -
subsidiary 264,907,97 Independen
TIONAL Panama personnel 3,346,347.7 20.22% No
incorporate 1.90 t operations
CORPORA insurance 7
d overseas
TION
AFRICA Controlling 185,621,96 Independen Professiona -
Ghana 14.17% No
STAR subsidiary 3.33 t operations l 14,052,507.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
FISHERIE incorporate manageme 01
S d overseas nt team
LIMITED stationed
overseas
and vessel
and
personnel
insurance
Professiona
l
manageme
ZHONG
nt team
GHA Controlling
stationed -
FOODS subsidiary 113,453,65 Independen
Ghana overseas 3,721,520.8 8.66% No
COMPAN incorporate 8.33 t operations
and vessel 8
Y d overseas
and
LIMITED
personnel
insurance
□Applicable ? Not applicable
Item Book value Type of restriction
Monetary funds 7,800,000.00 Guarantee deposits for notes and letters of guarantee
Fixed assets 425,373,763.77 Mortgage loans
Intangible assets 47,552,152.82 Mortgage loans
Construction in progress 220,235,411.15 Mortgage loans
Total 700,961,327.74
VI. Investment Analysis
? Applicable □Not applicable
Investment amount for the Reporting Investment amount for the same period
Changes (%)
Period (RMB) in the previous year (RMB)
□Applicable ? Not applicable
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
? Applicable □Not applicable
Unit: RMB
Reasons
for
Total
failure
actual Total
to reach
Whether Industri Investm investm income
the
it is an es ent ent Expecte realized
Investm planned Disclosu Disclosu
Project investm involved amount amount Fund Project d as of the
ent progress re date re index
name ent in in the for the as at the source progress investm end of
method and (if any) (if any)
fixed investm Reportin end of ent the
realize
assets ent g Period the Reportin
the
Reportin g Period
expecte
g Period
d
income
Proces
sing Long-
Not
Tuna and term
Self- 38,837 yet put
Tradin trading 1,297, borrow 65.67
constr Yes ,263.2 into
g of 730.86 ings, %
uction 5 operati
Center aquatic Owner'
on
produc s funds
ts
Cold
Long-
chain Not
No.5 term
Self- wareh 15,570 163,19 yet put
Cold borrow 90.57
constr Yes ousing ,299.2 9,862. into
Storag ings, %
uction and 3 06 operati
e Owner'
logisti on
s funds
cs
Total -- -- -- ,030.0 7,125. -- -- 0.00 0.00 -- -- --
(1) Securities investment
□Applicable ? Not applicable
The Company did not have securities investments during the Reporting Period.
(2) Derivative investment
□Applicable ? Not applicable
The Company did not have derivative investments during the Reporting Period.
□Applicable ? Not applicable
The Company had no use of raised funds during the Reporting Period.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
VII. Sale of Significant Assets and Equity
□Applicable ? Not applicable
The Company did not sell any significant assets during the Reporting Period.
□Applicable ? Not applicable
VIII. Analysis of Key Shareholding Companies
? Applicable □Not applicable
Key subsidiaries and shareholding companies affecting the Company’s net profits by more than 10%
Unit: RMB
Company Company Main Registered Operating Operating
Total assets Net assets Net profits
name type business capital revenue profits
Shandong
Zhonglu
Oceanic Food 104,322,30 502,247,29 390,196,56 237,557,46 12,085,690. 11,133,239.
Subsidiary
(Yantai) processing 0.00 4.51 9.40 9.65 30 30
Food Co.,
Ltd.
HABITAT
INTERNA - -
Refrigerate 12,476,145. 264,907,97 231,694,71 47,675,946.
TIONAL Subsidiary 3,346,347.7 3,346,347.7
d transport 60 1.90 6.88 32
CORPORA 7 7
TION
Shandong
Zhonglu
- -
Haiyan Long range 221,617,34 537,995,67 370,443,02 101,326,36
Subsidiary 13,818,446. 13,906,876.
Oceanic fishing 9.00 1.70 8.75 2.89
Fisheries
Co., Ltd.
Acquisition and disposal of subsidiaries during the Reporting Period
□Applicable ? Not applicable
Information of key shareholding companies
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.: Operating profits for the Reporting Period were RMB12,085,690.30, up
with the same period last year.
HABITAT INTERNATIONAL CORPORATION: Operating profits for the Reporting Period were RMB-3,346,347.77, down
which led to a year-on-year decline in income and profits.
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd.: Operating profits for the Reporting Period were RMB-13,818,446.35, up
production, lower unit costs, and higher gross profit.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
IX.Structured Entities Controlled by the Company
□Applicable ? Not applicable
X.Risks facing the Company and countermeasures
decreases in fishing resources will have a greater impact on the Company's profits. Cyclic changes, climates, hydrological
conditions, and other relevant conditions are all likely to cause fluctuations in fishing resources. Countermeasures: develop new
fishing grounds, perform scientific dispatching, upgrade fishing production equipment, and gradually update production vessels;
make scientific and reasonable arrangements for logistics support for vessel maintenance, equipment repair, supplies, baits, spare
parts, and personnel, and ensure the ship departure rate.
international oil prices remain high and volatile, leading to a surge in fuel costs and consequently compressing profit margins.
Countermeasures: rationally plan fuel procurement timing and quantities, conduct inquiries and comparisons with suppliers in
advance to minimize fuel procurement costs; flexibly adjust production plans, consider periodic vessel floating or docking in ports
to reduce fuel consumption and cost expenditures.
revenues settled in foreign currencies, and the exchange rate risk faced by the aquatic product processing business remains
significant. Countermeasures: scientifically forecast exchange rate trends, manage exchange rate risk in accordance with the
principle of exchange rate neutrality, and take corresponding measures against possible changes in exchange rates to reduce or
avoid losses caused by exchange rate fluctuations.
drive the replacement of old vessels and optimize asset allocation to prevent potential safety hazards.
XI. Development and Implementation of Market Value Management System and Valuation
Enhancement Plan
Has the Company developed a market value management system?
?Yes □No
Has the Company disclosed a valuation enhancement plan?
?Yes □No
According to calculations, from January 1, 2024, to December 31, 2024, the Company's stock experienced low-level fluctuations,
with the closing price of each trading day remaining below the audited net asset value per share for 12 consecutive months, falling
under the circumstances that require the formulation of a valuation enhancement plan. The 23rd Meeting (extraordinary session) of
the Eighth Board of Directors reviewed and approved the Valuation Enhancement Plan. The Company will focus on enhancing
operational business, building corporate image, strengthening shareholder returns, seeking restructuring opportunities, and
establishing long-term incentive mechanisms to strive for an increase in the Company's investment value. For details, please refer
to the Valuation Enhancement Plan of Shandong Zhonglu Oceanic Fisheries Co., Ltd. (Announcement No. 2025-05) published on
the website of CNINFO www.cninfo.com.cn on March 1, 2025.
The Company's Market Value Management System was first reviewed and approved at the 23rd Meeting (extraordinary session)
of the Eighth Board of Directors and was revised and approved at the 2nd Meeting of the Ninth Board of Directors. For details,
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
please refer to the Market Value Management System of Shandong Zhonglu Oceanic Fisheries Co., Ltd. published on the website
of CNINFO www.cninfo.com.cn on March 1, 2025, and April 24, 2026, respectively.
XII. Implementation of the “Increasing Both Quality and Profit” Action Plan
Whether the Company disclosed an announcement on the “Increasing Both Quality and Profit” action plan.
□Yes ?No
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section IV Corporate Governance, Environmental, and Social
I. Information on the directors and senior management of the company
? Applicable □Not applicable
Name Position Type Date Reason
Zhu Wei Independent Director Elected January 15, 2026 Re-election
Li Yisheng Employee Director Elected January 15, 2026 Re-election
II. The Company's profit distribution and capitalization of capital reserves
□Applicable ? Not applicable
The Company plans not to distribute cash dividends or bonus shares, or increase share capital from public reserves.
III. Implementation of the Company's equity incentive plan, employee stock ownership plan
or other employee incentive measures
□Applicable ? Not applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employee
incentive measures and their implementation.
IV. Environmental Information Disclosure Status
Is the listed company and its major subsidiaries included in the list of enterprises subject to mandatory environmental information
disclosure pursuant to the law?
□Yes ?No
V. Social Responsibility
(1) Serving rural revitalization
Proactively serving overall economic and social development, the Company selected one cadre to participate in the
provincial-level "First Secretary" task force, actively contributing to serving rural revitalization and driving high-quality economic
and social development.
(2) Fulfilling overseas social responsibilities
Zhonglu Ghana Representative Office actively participated in the "Back to School" charity project of the Tema East
Education Foundation in Ghana and held two charity education donation events to support the development of local education.
(3) Practicing humanistic care
The Company regularly carried out activities such as visits and condolences to frontline crew members, recuperation and rest
for frontline workers, assistance to needy employees, and vocational skills training. It also implemented care measures such as
health check-ups for employees and honorary retirement ceremonies, effectively making employees feel the care and warmth of
the enterprise.
(4) Carrying out volunteer activities
The Company organized staff to enter communities and participate in volunteer services such as voluntary blood donation,
charitable donations, civilization advocacy, and community cleaning, contributing to the advancement of a spiritual civilization in
the new era.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section V Important Matters
I. Commitments fulfilled by the Company’s actual controller, shareholders, related parties,
acquirers, the Company and other relevant parties, and commitments that commitments
that have not been fully fulfilled as of the end of the reporting period
□Applicable ? Not applicable
There are no commitments made by the actual controllers, shareholders, related parties, acquirers, and other related parties of the
company during the reporting period that have been fulfilled or have not been fulfilled by the end of the reporting period.
II. Non-operating capital occupation of listed companies by controlling shareholders and
other related parties
□Applicable ? Not applicable
During the reporting period of the Company, there was no non-operating capital occupation of listed companies by controlling
shareholders and other related parties.
III. Illegal external guarantees
□Applicable ? Not applicable
The Company had no external guarantees in violation of regulations.
IV. Appointment and dismissal of accounting firms
Has the semi-annual financial report been audited
□Yes ?No
The company's semi-annual report has not been audited.
V. Explanation of the board of directors on the “non-standard audit report” of the
accounting firm for the reporting period
□Applicable ? Not applicable
VI. Explanation by the board of directors on the relevant situation of the "non-standard
audit report" of the previous year
□Applicable ? Not applicable
VII. Matters related to bankruptcy and reorganization
□Applicable ? Not applicable
During the reporting period, there were no matters related to bankruptcy and reorganization of the Company.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
VIII. Litigation matters
Major litigation and arbitration matters
□Applicable ? Not applicable
During this reporting period, the company has no major litigation or arbitration matters.
Other litigation matters
□Applicable ? Not applicable
IX. Punishment and rectification
□Applicable ? Not applicable
The Company did not receive any punishment or request for rectifications during the Reporting Period.
X. Integrity status of the Company and its controlling shareholders and actual controllers
□ Applicable ?Not applicable
XI. Significant connected transactions
□Applicable ? Not applicable
During the reporting period of the Company, there was no connected transaction related to daily operation.
□Applicable ? Not applicable
During the reporting period, there was no connected transaction involving asset or equity acquisition or sale.
□Applicable ? Not applicable
During the reporting period, there was no connected transaction involving joint external investment.
?Applicable □ Not applicable
Whether there are non-operating related creditor's rights and debts
□Yes ? No
During the reporting period, the company had no related creditor's rights and debts.
□Applicable ? Not applicable
There is no deposit, loan, credit or other financial business between the Company and associated financial company or the related
party.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
□Applicable ? Not applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the Company and related
parties.
□Applicable ? Not applicable
There were no other significant related party transactions during the reporting period of the company.
XII. Significant contracts and their performance
(1) Trusteeship
? Applicable □Not applicable
Explanation on trusteeship
April 2022 , the Company has been entrusted by Shandong State-owned Assets Investment Holding Co., Ltd. to manage its
subsidiary Zhongtai Xincheng Asset Management Co., Ltd. (hereinafter referred to as "Zhongtai Xincheng"); as the shareholder
proxy of Zhongtai Xincheng, the Company shall comply with relevant provisions of the entrusted management agreement.
Zhongtai Xincheng is not included in the scope of the Company's consolidated statements.
Projects that bring profit or loss to the Company amounting to more than 10% of the Company's total profit in the reporting period
□Applicable ? Not applicable
During the reporting period of the Company, there was no trusteeship project which brings profit or loss for the Company
amounting to more than 10% of the total profit of the Company.
(2) Contracting status
□Applicable ? Not applicable
There was no contracting in the reporting period of the Company.
(3) Lease situation
□Applicable ? Not applicable
There was no lease in the reporting period of the Company.
? Applicable □Not applicable
Unit: RMB’0000
Guarantees provided by the Company and its subsidiaries (excluding guarantees for subsidiaries)
Guarant Announc Actual Actual Type of Counter- Whether
Guarante Collatera Guarante Whether
ee ement date of guarante guarante guarante for
e quota l (if any) e period fulfilled
recipient date of occurren e e e (if any) related
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
guarante ce amount party
e quota
Guarantees provided by the Company for its subsidiaries
Announc
Actual Actual Whether
Guarant ement Type of Counter-
Guarante date of guarante Collatera Guarante Whether for
ee date of guarante guarante
e quota occurren e l (if any) e period fulfilled related
recipient guarante e e (if any)
ce amount party
e quota
Zhonglu
Oceanic
(Qingda
o) January
Joint and
Industria Decemb 2, 2025
January 12,029.1 several
l er 25, 24,000 to No No
Investm 2024 January
e
ent and 1, 2045
Develop
ment
Co., Ltd.
Total actual
Approval of total
guarantee amount
guarantee quota for
provided to
subsidiaries during 2,290.75
subsidiaries during
the reporting period
the reporting period
(B1)
(B2)
Total approved Total balance of
guarantee quota for guarantee provided
subsidiaries at the 24,000 to subsidiaries at the 12,029.17
end of the reporting end of the reporting
period (B3) period (B4)
Guarantees provided by subsidiaries to other subsidiaries
Announc
Actual Actual Whether
Guarant ement Type of Counter-
Guarante date of guarante Collatera Guarante Whether for
ee date of guarante guarante
e quota occurren e l (if any) e period fulfilled related
recipient guarante e e (if any)
ce amount party
e quota
Total guarantees of the Company (total of the first three items)
Approval of total Total actual
guarantee quota guarantee provided
during the reporting during the reporting
period (A1+B1+C1) period (A2+B2+C2)
Total approved
Total balance of
guarantee quota at
guarantee at the end
the end of the 24,000 12,029.17
of the reporting
reporting period
period (A4+B4+C4)
(A3+B3+C3)
Percentage of total guarantees (i.e.,
A4+B4+C4) in the Company’s net assets
Among which:
Balance of guarantees provided to
shareholders, actual controllers, and their 0
related parties (D)
Balance of debt guarantees provided directly 0
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
or indirectly to guaranteed parties with an
asset-liability ratio exceeding 70% (E)
Portion of the total guarantee amount that
exceeds 50% of net assets (F)
Total of the above three guarantee amounts
(D+E+F)
Description of any guarantees during the
reporting period where contingent liabilities
have arisen or there is evidence suggesting None
possible joint liability fulfillment for
unexpired guarantee contracts (if any)
Explanation of any external guarantees
provided in violation of prescribed None
procedures (if any)
□Applicable ? Not applicable
There was no entrusted wealth management in the reporting period of the Company.
□Applicable ? Not applicable
There were no other major contracts in the reporting period of the Company.
XIII. Registration Form for Surveys, Communications, Interviews, and Other Activities
Conducted During the Reporting Period
?Applicable □ Not applicable
Main topics
Index to basic
Time of Place of Method of Type of subject Subject discussed and
details of the
engagement engagement engagement engaged engaged materials
survey
provided
Information
about the
Company's
January 12, Phone Individual
Online Individual production and None
operations; no
materials were
provided
Information
about the
Company's
January 14, Phone Individual
Online Individual production and None
operations; no
materials were
provided
Information
about the
January 26, Phone Individual
Online Individual Company's None
production and
operations; no
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
materials were
provided
Information
about the
Company's
January 30, Phone Individual
Online Individual production and None
operations; no
materials were
provided
Information
about the
Company's
Phone Individual
May 6, 2026 Online Individual production and None
communication investor
operations; no
materials were
provided
Information
about the
Company's
Phone Individual
June 8, 2026 Online Individual production and None
communication investor
operations; no
materials were
provided
Information
about the
Company's
Phone Individual
June 29, 2026 Online Individual production and None
communication investor
operations; no
materials were
provided
XIV. Notes to other major items
□Applicable ? Not applicable
During the Reporting Period, the Company did not have other significant events to explain.
XV. Significant events of the Company's subsidiaries
□Applicable ? Not applicable
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section VI Changes in Shares and Information on Shareholders
I. Changes in shares
Unit: share
Before this change Increase or decrease in this change (+, -) After this change
Provident
Issuance of Bonus
Quantity Proportion fund Other Subtotal Quantity Proportion
new shares shares
transfer
I.Unlisted
tradable 48.13% 48.13%
shares
Promoter 48.13% 48.13%
shares
Of
which:
shares 48.04% 48.04%
held by
the state
Shar
es held by
domestic 260,000 0.09% 260,000 0.09%
legal
persons
Shar
es held by
foreign
legal
persons
Other
Raising
legal
person
shares
Internal
staff
shares
Preferred
stock or
other
II. Listed
tradable 51.87% 51.87%
shares
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
ordinary
shares
Foreign
shares 51.87% 51.87%
listed in
China
Foreign
shares
listed
overseas
Others
III. Total
number of 100.00% 100.00%
shares
Reason for Share Change
□Applicable ? Not applicable
Approval status of shareholding changes
□Applicable ? Not applicable
Transfer status of share changes
□Applicable ? Not applicable
Implementation progress of share repurchase
□Applicable ? Not applicable
Implementation progress of reducing share repurchase through centralized bidding
□Applicable ? Not applicable
The impact of shareholding changes on financial indicators such as basic earnings per share, diluted earnings per share, and net
assets per share attributable to ordinary shareholders of the Company in the last year and the latest period
□Applicable ? Not applicable
Other content that the Company deems necessary or required by securities regulators to disclose
□Applicable ? Not applicable
□Applicable ? Not applicable
II. Securities Issuance and Listing
□Applicable ? Not applicable
III. Number of shareholders and shareholding status of the Company
Unit: share
Total number of ordinary Total number of preferred
shareholders at the end of shareholders with voting
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the reporting period rights restored at the end
of the reporting period (if
any) (see note 8)
Shareholding status of shareholders holding 5% or more of shares or top 10 shareholders (excluding shares lent through securities
lending)
Number of Increase/de Pledge, Mark or Frozen
shares held crease Number of Situation
Nature of Number of
Shareholde Shareholdi at the end changes non-
shareholder tradable
r name ng ratio of the during the tradable Share
s shares held Quantity
reporting reporting shares held Status
period period
Shandong
State-owned
Assets State-owned 125,731,32 125,731,32 Not
Investment legal person 0 0 applicable
Holding Co.,
Ltd.
Domestic Not
Zhu Shuzhen 2.17% 5,785,504 161057 5,785,504
natural person applicable
Chen Foreign Not
Tianming natural person applicable
Domestic Not
Zhan Hanbin 2.11% 5,625,200 42869 5,625,200
natural person applicable
Domestic Not
Cai Yujiu 1.75% 4,669,000 4,669,000
natural person applicable
Domestic Not
Chen Cirou 1.53% 4,065,600 350500 4,065,600
natural person applicable
China
National
State-owned Not
Heavy Duty 0.73% 1,950,000 1,950,000
legal person applicable
Truck Group
Co., Ltd.
Domestic Not
Lin Mingyu 0.47% 1,240,000 -124201 1,240,000
natural person applicable
Chen Domestic Not
Zhongming natural person applicable
Foreign Not
Huang Jiayi 0.39% 1,033,987 1,033,987
natural person applicable
Circumstances where
strategic investors or
general legal persons
became top 10 None
shareholders due to new
share allotments (if any)
(See Note 3)
Explanation on the related
The Company is not aware of whether any association exists between them or whether they
relationship or concerted
constitute persons acting in concert as defined in the Administration Measures on Takeover of Listed
action of aforesaid Companies.
shareholders
Explanation of the above-
mentioned shareholders
involved in
None
entrusted/entrusted voting
rights and waiver of
voting rights
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Special instructions for
repurchase accounts
among the top 10 None
shareholders (if any) (see
Note 11)
Shareholding details of top 10 tradable share holders (excluding shares lent through securities and executive lock-up shares)
Type of shares
Shareholder name Number of tradable shares held at the end of the reporting period Type of
Quantity
shares
Domestic
Zhu Shuzhen 5,785,504 listed foreign 5,785,504
shares
Domestic
Chen Tianming 5,760,427 listed foreign 5,760,427
shares
Domestic
Zhan Hanbin 5,625,200 listed foreign 5,625,200
shares
Domestic
Cai Yujiu 4,669,000 listed foreign 4,669,000
shares
Domestic
Chen Cirou 4,065,600 listed foreign 4,065,600
shares
Domestic
Lin Mingyu 1,240,000 listed foreign 1,240,000
shares
Domestic
Chen Zhongming 1,080,100 listed foreign 1,080,100
shares
Domestic
Huang Jiayi 1,033,987 listed foreign 1,033,987
shares
Domestic
Liu Xinghui 854,211 listed foreign 854,211
shares
Domestic
Fang Xiaozhou 828,343 listed foreign 828,343
shares
Explanation of
associations or acting in
concert among the top 10
shareholders with
The Company is not aware of whether the aforesaid shareholders have any associated relationship or
unrestricted tradable
are persons acting in concert as stipulated in the Administration Measures on Takeover of Listed
shares, and between the
Companiess.
top 10 shareholders with
unrestricted tradable
shares and the top 10
shareholders
Note for the top 10
ordinary shareholders
participating in margin None
trading (if any) (see Note
Participation in the lending of shares through securities lending by shareholders holding more than 5% of the shares, the top 10
shareholders, and the top 10 holders of unlimited circulating shares
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
□Applicable ? Not applicable
Change from the previous period resulting from securities lending/returning by the top 10 shareholders and the top 10 holders of
unlimited circulating shares
□Applicable ? Not applicable
Whether the Company’s top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales
restrictions conducted agreed repurchase transactions during the reporting period
□Yes ?No
The Company's top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales restrictions
did not conduct agreed repurchase transactions during the reporting period.
IV. Changes in Shareholding of Directors and Senior Management
□Applicable ? Not applicable
There has been no change in shareholding situation of the company's directors and senior management personnel during the
reporting period, as detailed in the 2025 annual report.
V. Changes in controlling shareholders or actual controllers
Has the company previously disclosed that the actual controller is planning a change of control but has not yet completed it? If so,
please explain the progress of the change of control.
□Applicable ? Not applicable
Changes in controlling shareholders during the reporting period
□Applicable ? Not applicable
There has been no change in the controlling shareholder of the company during the reporting period.
Changes in actual controller during the reporting period
□Applicable ? Not applicable
There has been no change in the actual controller of the company during the reporting period.
VI. Preferred Shares
□Applicable ? Not applicable
During the reporting period, the Company had no preferred shares.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section VII Bonds
□Applicable ? Not applicable
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section VIII Financial Report
I. Audit Report
Has the semi-annual report been audited
□Yes ?No
The company's semi-annual financial report has not been audited.
II. Financial Statements
The monetary unit of the financial statements in the financial notes is: RMB
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd.
June 30, 2026
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 233,352,220.34 313,096,173.70
Settlement provisions
Lending funds
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 42,660,126.67 77,973,714.62
Accounts receivable financing
Prepayments 23,460,418.74 17,625,072.87
Premium receivable
Accounts receivable reinsurance
Reinsurance contract reserve
receivable
Other receivables 89,554,044.25 105,905,380.86
Including: Interest receivable
Dividends receivable
Buying back the sale of financial
assets
Inventory 458,315,899.30 381,905,920.98
Including: data resources
Contract assets
Assets held for sale
Non-current assets maturing within
one year
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Other current assets 20,300,693.58 28,152,443.26
Total current assets: 867,643,402.88 924,658,706.29
Non-current assets:
Issuance of loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 239,987.08 441,892.08
Other equity instrument investments
Other non-current financial assets
Investment real estate 24,141,587.69 24,804,626.03
Fixed assets 893,074,353.16 927,820,225.94
Construction in progress 235,979,273.52 205,135,249.27
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 57,163,623.38 57,909,522.26
Including: data resources
Development expenditure
Including: data resources
Goodwill
Long-term deferred expenses 4,483,445.13 2,575,291.62
Deferred tax assets 1,145,493.06 1,238,499.80
Other non-current assets 18,286,457.24 23,629,081.65
Total non-current assets 1,234,514,220.26 1,243,554,388.65
Total assets 2,102,157,623.14 2,168,213,094.94
Current liabilities:
Short-term loans 16,010,400.00 16,022,933.34
Borrowing from the Central Bank
Borrowing funds
Trading financial liabilities
Derivative financial liabilities
Notes payable 15,000,000.00 56,979,768.40
Accounts payable 73,449,328.93 82,543,681.42
Advance payment 1,319,438.37 1,201,097.79
Contract liabilities 58,602,167.88 8,866,554.08
Financial assets sold for repurchase
Deposit taking and interbank deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 46,159,422.61 77,123,782.16
Taxes and fees payable 5,936,743.42 8,704,199.41
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Other payables 28,210,173.38 24,571,935.67
Including: Interest payable
Dividends payable 5,234,835.31 5,234,835.31
Handling fees and commissions
payable
Accounts payable reinsurance
Held for sale liabilities
Non-current liabilities maturing within
one year
Other current liabilities 11,770.97 19,248.74
Total current liabilities 262,229,278.89 292,713,034.34
Non-current liabilities:
Insurance contract reserves
Long-term loans 475,177,847.78 461,379,416.23
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term employee compensation
payable
Estimated liabilities
Deferred income 51,796,291.97 53,112,953.91
Deferred tax liability 2,100,902.90 2,176,093.44
Other non-current liabilities
Total non-current liabilities 529,560,107.39 517,161,117.47
Total liabilities 791,789,386.28 809,874,151.81
Owner's equity:
Capital stock 266,071,320.00 266,071,320.00
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital reserve 295,620,272.02 295,620,272.02
Less: Treasury stock
Other comprehensive income -13,331,235.02 -6,329,745.36
Special reserves 136,001.20 19,038.84
Surplus reserves 21,908,064.19 21,908,064.19
General risk provision
Undistributed profits 480,802,871.90 517,377,265.93
Total owner's equity attributable to the
parent company
Minority shareholders' equity 259,160,942.57 263,672,727.51
Total owner's equity 1,310,368,236.86 1,358,338,943.13
Total liabilities and owner's equity 2,102,157,623.14 2,168,213,094.94
Legal representative: Wang Huan, Person in charge of accounting work: Fu Chuanhai, Person in charge of accounting agency: Lei
Lixin
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 120,958,954.50 74,170,229.10
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 2,355,971.27 6,772,591.41
Accounts receivable financing
Prepayments 10,131,903.10 10,971,776.11
Other receivables 165,825,490.33 212,781,089.97
Including: Interest receivable
Dividends receivable 26,199,905.76
Inventory 94,603,844.67 76,451,519.66
Including: data resources
Contract assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 1,342,345.94 1,329,559.32
Total current assets 395,218,509.81 382,476,765.57
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 328,189,455.23 328,189,455.23
Other equity instrument investments
Other non-current financial assets
Investment real estate 24,141,587.69 24,804,626.03
Fixed assets 453,313,395.92 469,077,286.57
Construction in progress 3,099,092.79
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets
Including: data resources
Development expenditure
Including: data resources
Goodwill
Long-term deferred expenses 1,445,436.75 1,545,122.07
Deferred tax assets
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Other non-current assets
Total non-current asset 810,188,968.38 823,616,489.90
Total assets 1,205,407,478.19 1,206,093,255.47
Current liabilities:
Short-term loans
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 12,882,522.61 16,261,029.71
Advance receipts 1,319,438.37 1,201,097.79
Contract liabilities 41,081,765.30 2,520,624.96
Employee compensation payable 14,967,714.18 24,030,505.61
Taxes and fees payable 382,564.43 1,028,651.33
Other payables 195,553,202.82 178,191,959.02
Including: Interest payable
Dividends payable
Held for sale liabilities
Non-current liabilities maturing within
one year
Other current liabilities
Total current liabilities 283,717,041.04 239,913,701.75
Non-current liabilities:
Long-term loans 354,790,914.07 363,995,237.04
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term employee compensation
payable
Estimated liabilities
Deferred income 39,528,539.83 40,282,403.35
Deferred tax liability
Other non-current liabilities
Total non-current liabilities 394,748,175.83 404,706,362.32
Total liabilities 678,465,216.87 644,620,064.07
Owner's equity:
Capital stock 266,071,320.00 266,071,320.00
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital reserve 279,115,900.17 279,115,900.17
Less: Treasury stock
Other comprehensive income
Special reserve
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Surplus reserves 19,184,672.34 19,184,672.34
Undistributed profits -37,429,631.19 -2,898,701.11
Total owner's equity 526,942,261.32 561,473,191.40
Total liabilities and owner's equity 1,205,407,478.19 1,206,093,255.47
Unit: RMB
Item Half year of 2026 Half year of 2025
I. Total operating income 410,581,705.72 677,380,077.49
Including: Operating income 410,581,705.72 677,380,077.49
Interest income
Earned premium
Handling fee and
commission income
II. Total operating costs 452,600,344.15 694,829,251.66
Including: Operating costs 403,248,048.82 657,100,642.65
Interest expenses
Handling fees and commission
expenses
Surrender deposit
Net compensation expenses
Net amount of insurance
liability reserve withdrawn
Expenditures dividend policy
Reinsurance expenses
Taxes and surcharges 1,467,723.93 1,762,684.52
Sales expenses 1,892,976.36 1,971,307.26
Administrative expenses 28,370,121.32 28,243,483.54
R&D expenses 1,366,353.02 1,856,396.41
Financial expenses 16,255,120.70 3,894,737.28
Including: Interest expenses 4,542,753.58 5,583,036.73
Interest income 549,308.27 655,252.31
Plus: Other income 1,991,066.10 1,480,732.47
Investment income (loss , using
-291,046.67 -231,502.46
"-")
Including: Investment
income from associates and joint -201,905.00 -231,502.46
ventures
Income from
derecognition of financial assets
measured at amortized cost
Exchange gains (losses, using "-")
Net exposure hedging income
(loss, using "-")
Income from changes in fair
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
value (loss , using "-")
Credit impairment loss (loss ,
using "-")
Asset impairment loss (loss ,
-2,039,274.87 -3,604,352.83
using "-")
Asset disposal income (loss ,
-12,608.53
using "-")
III. Operating profit (loss , using "-") -38,079,532.16 -19,937,906.21
Plus: Non-operating income 220.00
Less: Non-operating expenses 157,528.37 18,503.26
IV. Total profit (total loss, using "-") -38,237,060.53 -19,956,189.47
Less: Income tax expenses 966,105.34 1,065,757.84
V. Net profit (net loss, using "-") -39,203,165.87 -21,021,947.31
(I) Classified by business continuity
-39,203,165.87 -21,021,947.31
(net loss , using "-")
operations (net loss , using "-")
(II) Classification by ownership
of the parent company (net loss, using "- -36,574,394.03 -13,337,046.26
")
-2,628,771.84 -7,684,901.05
(net loss, using "-")
VI. After-tax net amount of other
-8,884,502.76 -1,310,030.90
comprehensive income
After-tax net amount of other
comprehensive income attributable to the -7,001,489.66 -1,048,590.51
owner of the parent company
(I) Other comprehensive income that
cannot be reclassified into profit or loss
benefit plans
cannot be transferred to gain or loss
under the equity method
instrument investments
own credit risk
(II) Other comprehensive income to be
-7,001,489.66 -1,048,590.51
reclassified into profit or loss
be transferred to profit or loss under the
equity method
investments
other comprehensive income
debt investments
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
currency financial statements
After-tax net amount of other
comprehensive income attributable to -1,883,013.10 -261,440.39
minority shareholders
VII. Total comprehensive income -48,087,668.63 -22,331,978.21
Total comprehensive income
attributable to the owners of the parent -43,575,883.69 -14,385,636.77
company
Total comprehensive income
-4,511,784.94 -7,946,341.44
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share -0.1375 -0.0501
(II) Diluted earnings per share -0.1375 -0.0501
Legal representative: Wang Huan, Person in charge of accounting work: Fu Chuanhai, Person in charge of accounting agency: Lei
Lixin
Unit: RMB
Item Half year of 2026 Half year of 2025
Less: Operating costs 75,606,062.64 150,269,922.87
Taxes and surcharges 658,951.68 722,163.95
Sales expenses 258,330.60 123,937.48
Administrative expenses 14,674,481.72 13,256,539.76
R&D expenses 264,416.64
Financial expenses 9,564,108.63 8,485,568.70
Including: Interest expenses 6,001,788.31 6,651,961.74
Interest income 264,345.16 295,898.97
Plus: Other income 1,321,375.66 783,919.99
Investment income (loss , using "-")
Including: Investment income
from associates and joint ventures
Income from derecognition of financial
assets measured at amortized cost (loss ,
using "-")
Net exposure hedging income
(loss , using "-")
Income from changes in fair
value (loss , using "-")
Credit impairment loss (loss ,
using "-")
Asset impairment loss (loss ,
using "-")
Asset disposal income (loss ,
using "-")
II. Operating profit (loss , using "-") -34,530,165.90 -20,653,658.64
Plus: Non-operating income 220.00
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Less: Non-operating expenses 764.18
III. Total profit (total loss , using "-") -34,530,930.08 -20,653,438.64
Less: Income tax expenses
IV. Net profit (net loss , using "-") -34,530,930.08 -20,653,438.64
(I) Net profit from continuing
-34,530,930.08 -20,653,438.64
operations (net loss , using "-")
(2) Net profit from discontinuing
operations (net loss, using "-")
V.After-tax net amount of other
comprehensive income
(I) Other comprehensive income that
cannot be reclassified into profit or loss
benefit plans
that cannot be transferred to gain or loss
under the equity method
equity instrument investments
enterprise's own credit risk
(II) Other comprehensive income to
be reclassified into profit or loss
that can be transferred to profit or loss
under the equity method
credit investments
into other comprehensive income
of other debt investments
foreign currency financial statements
VI. Total comprehensive income -34,530,930.08 -20,653,438.64
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
Unit: RMB
Item Half year of 2026 Half year of 2025
I. Cash flow generated from operating
activities:
Cash received from selling goods and
providing services
Net increase in customer deposits and
interbank deposits and loans
Net increase in borrowings from the
Central Bank
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Net increase in borrowing funds from
other financial institutions
Cash received from original insurance
contract premiums
Net cash received from reinsurance
business
Net increase in insured deposits and
investments
Cash received for interest, handling
fees, and commissions
Net increase in borrowing funds
Net increase in repurchase business
funds
Net cash received from proxy trading
of securities
Received refunds of taxes 22,418,185.11 34,406,365.62
Received other cash related to
operating activities
Subtotal of cash inflows from operating
activities
Cash paid for purchasing goods and
receiving services
Net increase in customer loans and
advances
Net increase in deposits with Central
Bank and interbank funds
Cash paid for compensation under the
original insurance contract
Net increase in lending funds
Cash paid for interest, handling fees,
and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
employees
Various taxes and fees paid 6,249,687.26 5,371,920.89
Other cash payments related to
operating activities
Subtotal of cash outflows from operating
activities
Net cash flow generated from operating
-31,864,804.21 82,605,264.02
activities
II. Cash flow generated from investment
activities
Cash received from investment
recovery
Cash received from obtaining
investment income
Net cash received from disposal of
fixed assets, intangible assets, and other 96,807.39 7,242.00
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Received other cash related to
investment activities
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Subtotal of cash inflows from investment
activities
Cash paid for the purchase and
construction of fixed assets, intangible 30,880,732.65 73,143,426.28
assets, and other long-term assets
Cash paid for investment
Net increase in pledged loans
Net cash paid for acquiring
subsidiaries and other business units
Other cash payments related to
investment activities
Subtotal of cash outflows from
investment activities
Net cash flow generated from investment
-30,783,925.26 -73,136,184.28
activities
III. Cash flow generated from financing
activities:
Cash received from absorbing
investments
Including: Cash received from
subsidiaries absorbing minority
shareholder investments
Cash received from obtaining loans 23,000,000.00 67,291,702.81
Received other cash related to
financing activities
Subtotal of cash inflows from financing
activities
Cash paid for debt repayment 8,289,916.67 36,689,916.67
Cash paid for distributing dividends,
profits, or paying interest
Including: Dividends and profits paid
by subsidiaries to minority shareholders
Other cash payments related to
financing activities
Subtotal of cash outflows from financing
activities
Net cash flow generated from financing
activities
IV. The impact of exchange rate changes
-10,290,189.28 6,166,362.76
on cash and cash equivalents
V. Net increase in cash and cash
-58,754,069.16 38,150,559.41
equivalents
Plus: Opening balance of cash and
cash equivalents
VI. Closing balance of cash and cash
equivalents
Unit: RMB
Item Half year of 2026 Half year of 2025
I. Cash flow generated from operating
activities:
Cash received from selling goods and
providing services
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Received refunds of taxes
Received other cash related to
operating activities
Subtotal of cash inflows from operating
activities
Cash paid for purchasing goods and
receiving services
Cash paid to and on behalf of
employees
Various taxes and fees paid 808,572.35 903,122.81
Other cash payments related to
operating activities
Subtotal of cash outflows from operating
activities
Net cash flow generated from operating
activities
II. Cash flow generated from investment
activities:
Cash received from investment
recovery
Cash received from obtaining
investment income
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
Received other cash related to
investment activities
Subtotal of cash inflows from investment
activities
Cash paid for the purchase and
construction of fixed assets, intangible
assets, and other long-term assets
Cash paid for investment
Net cash paid for acquiring
subsidiaries and other business units
Other cash payments related to
investment activities
Subtotal of cash outflows from
investment activities
Net cash flow generated from investment
activities
III. Cash flow generated from financing
activities:
Cash received from absorbing
investments
Cash received from obtaining loans
Received other cash related to
financing activities
Subtotal of cash inflows from financing
activities
Cash paid for debt repayment 8,289,916.67 6,689,916.67
Cash paid for distributing dividends,
profits, or paying interest
Other cash payments related to
financing activities
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Subtotal of cash outflows from financing
activities
Net cash flow generated from financing
-12,562,710.52 -20,677,131.06
activities
IV. The impact of exchange rate changes
-8,836.83 -69.64
on cash and cash equivalents
V. Net increase in cash and cash
equivalents
Plus: Opening balance of cash and
cash equivalents
VI. Closing balance of cash and cash
equivalents
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Amount of current period
Unit: RMB
Half year of 2026
Minority Total
Total owner's equity attributable to the parent company sharehold owner's
er's equity
equity
Item
Other equity instruments Other
Less: General Undistrib
Capital Capital comprehe Special Surplus
Preferred Perpetual Treasury risk uted Others Subtotal
stock Others reserve nsive reserves reserves
stock bonds stock provision profit
income
- 1,094,6 1,358,3
I. Closing balance of 266,071 295,620 19,038. 21,908, 517,377 263,672
previous year ,320.00 ,272.02 84 064.19 ,265.93 ,727.51
Plus: Changes
in accounting
policies
Early error
correction
Others
- 1,094,6 1,358,3
II. Opening balance 266,071 295,620 19,038. 21,908, 517,377 263,672
of this year ,320.00 ,272.02 84 064.19 ,265.93 ,727.51
III. Increase or
- - - - -
decrease in the 116,962
current period .36
(decrease , using "-")
(I) Total - - - - -
comprehensive 7,001,4 36,574, 43,575, 4,511,7 48,087,
income 89.66 394.03 883.69 84.94 668.63
(II) Capital invested
and reduced by
owners
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
invested by owners
by holders of other
equity instruments
based payments
recognized in
owner's equity
(III) Profit
distribution
surplus reserves
Withdrawal of
general risk
provisions
owners (or
shareholders)
(IV) Internal
carryover of owner's
equity
Capitalization of
capital reserves into
capital (or capital
stock)
converted into
capital (or capital
stock)
to cover losses
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
changes in defined
benefit plans to
retained earnings
comprehensive
income carried
forward to retained
earnings
(V)Special reserves
.36 .36 .36
current period 26.94 26.94 26.94
(VI) Others
- 1,051,2 1,310,3
IV. Closing balance 266,071 295,620 136,001 21,908, 480,802 259,160
of the current period ,320.00 ,272.02 .20 064.19 ,871.90 ,942.57
Amount of previous year
Unit: RMB
Half year of 2025
Total owner's equity attributable to the parent company
Other equity instruments Other Minority Total
Item Less: General Undistrib
Capital Capital comprehe Special Surplus sharehold owner's
Preferred Perpetual Treasury risk uted Others Subtotal
stock reserve nsive reserves reserves er's equity equity
Others
stock bonds stock provision profit
income
- 1,067,1 1,325,4
I. Closing balance of 266,071 295,620 21,908, 483,904 258,277
previous year ,320.00 ,272.02 064.19 ,313.48 ,578.10
.04 65 75
Plus: Changes in
accounting policies
Early error correction
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Others
- 1,067,1 1,325,4
II. Opening balance 266,071 295,620 21,908, 483,904 258,277
of this year ,320.00 ,272.02 064.19 ,313.48 ,578.10
.04 65 75
III. Increase or
- - - - -
decrease in the 327,504
current period .96
(decrease , using "-")
(I) Total - - - - -
comprehensive 1,048,5 13,337, 14,385, 7,946,3 22,331,
income 90.51 046.26 636.77 41.44 978.21
(II) Capital invested
and reduced by
owners
invested by owners
by holders of other
equity instruments
based payments
recognized in
owner's equity
Profit distribution
surplus reserves
Withdrawal of
general risk
provisions
owners (or
shareholders)
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(IV) Internal
carryover of owner's
equity
Capitalization of
capital reserves into
capital (or capital
stock)
converted into capital
(or capital stock)
to cover losses
changes in defined
benefit plans to
retained earnings
comprehensive
income carried
forward to retained
earnings
(V)Special reserves
.96 .96 .96
current period 66.45 66.45 66.45
.49 .49 .49
(VI) Others 0.00 0.00
- 1,053,1 1,303,4
IV. Closing balance 266,071 295,620 327,504 21,908, 470,567 250,331
of the current period ,320.00 ,272.02 .96 064.19 ,267.22 ,236.66
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Amount of current period
Unit: RMB
Half year of 2026
Other equity instruments Less: Other Total Total
Item Capital Capital Special Surplus Undistributed
Preferred Perpetual Treasury comprehensi Others owner's
stock Others reserve reserves reserves profit
stock bonds stock ve income equity
I. Closing balance of 266,071, 279,115,90 19,184,672 561,473,19
previous year 320.00 0.17 .34 1.40
Plus: Changes
in accounting
policies
Early error correction
Others
II. Opening balance 266,071, 279,115,90 19,184,672 561,473,19
of this year 320.00 0.17 .34 1.40
III. Increase or
- -
decrease in the
current period
.08 .08
(decrease , using "-")
(I) Total - -
comprehensive 34,530,930 34,530,930
income .08 .08
(II) Capital invested
and reduced by
owners
invested by owners
by holders of other
equity instruments
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
based payments
recognized in
owner's equity
(III)Profit
distribution
surplus reserves
owners (or
shareholders)
(IV) Internal
carryover of owner's
equity
capital reserves into
capital (or share
capital)
converted into capital
(or capital stock)
to cover losses
changes in defined
benefit plans to
retained earnings
comprehensive
income carried
forward to retained
earnings
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(V) Special reserve
current period
(VI) Others
IV. Closing balance 266,071, 279,115,90 19,184,672 526,942,26
of the current period 320.00 0.17 .34 1.32
.19
Amount of previous year
Unit: RMB
Half year of 2025
Other equity instruments Less: Other Total Total
Item Capital Special Surplus Undistributed
Capital stock Preferred Perpetual Treasury comprehensi Others owner's
Others reserve reserves reserves profit
stock bonds stock ve income equity
I. Closing balance of 266,071,32 279,115,90 19,184,672 545,336,41
previous year 0.00 0.17 .34 2.97
.54
Plus: Changes in
accounting policies
Early error correction
Others
II. Opening balance 266,071,32 279,115,90 19,184,672 545,336,41
of this year 0.00 0.17 .34 2.97
.54
III. Increase or
- -
decrease in the
current period
.64 .64
(decrease , using "-")
(I) Total - -
comprehensive 20,653,438 20,653,438
income .64 .64
(II) Capital invested
and reduced by
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
owners
invested by owners
by holders of other
equity instruments
based payments
recognized in
owner's equity
(III)Profit
distribution
surplus reserves
owners (or
shareholders)
(IV) Internal
carryover of owner's
equity
capital reserves into
capital (or share
capital)
converted into capital
(or capital stock)
to cover losses
changes in defined
benefit plans to
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
retained earnings
comprehensive
income carried
forward to retained
earnings
(V) Special reserve
current period
(VI) Others
IV. Closing balance 266,071,32 279,115,90 19,184,672 524,682,97
of the current period 0.00 0.17 .34 4.33
.18
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
III. Basic Information of the Company
Shandong Zhonglu Oceanic Fisheries Co., Ltd. (hereinafter referred to as “Company” or “the Company”) has a registered
capital of RMB 266,071,300 and registered address at Unit 2501, Building 1, 31 Xianxialing Road, Laoshan District, Qingdao,
Shandong. It is a company limited by shares that was incorporated by means of promotion by Shandong Provincial Aquatic
Products Group Corporation as the main promoter on July 30, 1999 under the approval of the Shandong Commission for Structural
Reforms with LTGZ [1999] No. 85. The Company was listed on the Shenzhen Stock Exchange on July 24, 2000, under the
approval of the China Securities Regulatory Commission with ZJFXZ [2000] No. 82 on June 26, 2000. The short stock name and
stock code of the Company are “Zhonglu B” and “200992,” respectively.
The Company’s organizational structure is as follows: Annual General Meeting, Board of Directors; General Manager’s
Office (CPC Committee’s Office), Chairman’s Office, Human Resource Department (Organization Department), Financial
Management Department (Capital Operation Department), Corporate Development Department (Risk Control Department), Audit
Department, Oceanic Management Department, Discipline Committee’s Office and Party-Mass Work Department.
The Company’s main products: tuna and tuna products.
The Company’s business scope: general business items: processing and sales of aquatic products; commodity imports and
exports within the approved scope; the production and sales of machine ice; the manufacturing, installation, and maintenance of
refrigeration equipment; freezing and cold storage; loading, unloading and handling services; property leases. Pre-licensed
business items: offshore and long range fishing.
The Company’s parent company is Shandong State-owned Assets Investment Holding Co., Ltd.
This financial report was approved for release according to the resolution of the Company’s Board of Directors dated August
IV. T Basis for the preparation of the financial statements.
The company takes continuing operation as the basis for preparing financial statements and takes the accrual basis as
the basis for bookkeeping. The company generally adopts the historical cost to measure the accounting elements, and
adopts the replacement cost, the realizable net value, the present value and the fair value on the premise that the
determined amount of the accounting elements can be obtained and be measured reliably.
The company shall have the ability of going concern for at least 12 months from the end of this report, and have no
major matters affecting the ability of going concern.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
V. Important accounting policies and accounting estimates
According to the actual characteristics of production and operation and the provisions of relevant accounting
standards for enterprises, the company has formulated several specific accounting policies and accounting estimates
for transactions and matters such as revenue recognition, see Note IV and 27 "revenue" for details. For the statement
of significant accounting judgments and estimates made by management team, please refer to Note IV, 34 "Major
Accounting judgments and Estimates".
The fiscal year starts from January 1 to December 31 of the Gregorian calendar.
The normal business cycle is the period from the company's purchase of assets for processing to the realization of
cash or cash equivalents. The company takes 12 months as a business cycle and takes it as the liquidity standard of
assets and liabilities.
RMB Yuan
The preparation and disclosure of the financial statements follow the principle of importance. The matters disclosed
in the notes to the financial statements involve the importance criteria and the importance criteria of the Company are
as follows:
Item Position disclosed in the notes to Importance criteria determination method and
this Financial Statements selection basis
Other profits Note VI, 42 1 million yuan
Important non-wholly owned subsidiary Notes IX, 1, and (2) Asset size greater than 100 million Yuan
Important associate companies Notes IX, and 2 The net profit scale is greater than 5 million yuan
Important projects under construction Note VI, 11 10 million yuan
Enterprise merger refers to the transaction or event in which two or more separate enterprises are merged to form a
reporting entity. Business merger is divided into enterprise merger under the same control and enterprise merger not
under the same control.
(1) Enterprise merger under the same control
The enterprises participating in the merger are subject to the final control of the same party or the same multiple
parties before and after the merger, and the control is not temporary and is the enterprise merger under the same
control. For an enterprise merger under the same control, the party acquiring control over the other enterprises
participating in the merger on the merger date shall be the merger party, and the other enterprises participating in the
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
merger shall be the merged party. The merger date refers to the date on which the merged party actually obtains the
control right of the incorporated party.
The assets and liabilities acquired by the consolidated party are measured at the book value of the consolidated party
at the merger date. The balance between the book value of the net assets acquired by the consolidated party (or the
total book value of the issued shares) shall adjust the capital reserve (equity premium); if the capital reserve (equity
premium) is insufficient to offset, the retained earnings shall be adjusted.
The merger party is the direct expenses incurred in the enterprise merger, which shall be recorded into the current
profit and loss at the time of occurrence.
(2) Enterprise merger not under the same control
If the enterprise participating in the merger is not under the final control of the same party or the same multiple
parties before and after the merger, it is the enterprise merger not under the same control. For an enterprise merger
not under the same control, the party who obtains the control right over the other enterprises participating in the
merger on the purchase date shall be the acquirer, and the other enterprises participating in the merger shall be the
acquiree. The date of purchase is the date on which the acquirer actually obtains control over the acquiree.
For merger of enterprises not under the same control, the cost of consolidation includes the assets paid by the
acquirer on the purchase date to acquire control over the acquiree, liabilities incurred or assumed by the acquirer and
equity securities issued to acquire control of the acquiree at the purchase date. The cost of audit for the merger of the
enterprise, legal services, evaluation and consulting intermediary fees and other management fees shall be recorded in
the current profit and losses. The transaction expense of equity or debt securities issued by the acquirer as the
combined consideration shall be included in the initial recognized amount of equity or debt securities. The contingent
consideration involved shall be included in the consolidated cost according to its fair value on the purchase date. If
there is new or further evidence of the existed situations of the purchase date within 12 months after it, the
consolidated goodwill shall be adjusted accordingly. The merger costs incurred by the acquirer and the identifiable net
assets acquired in the merger should be measured at the fair value of the purchase date. The difference between the
merger cost and the share of the fair value of the identifiable net assets of the purchased party on the purchase date
shall be recognized as goodwill. If the consolidated cost is less than the fair value of identifiable net assets of the
merger, first of the fair value of the identifiable assets, liabilities and contingent liabilities and combined cost
measurement, review the combined cost is still less than the identifiable net assets of the merger, the difference
included in the current profit and loss.
If the acquirer obtains the deductible temporary difference of the acquiree, and is not recognized on the purchase date
because it does not meet the conditions of deferred income tax assets for recognition, if new or further information
confirming the existence of relevant situations is obtained with in 12 months after the purchase date, the acquirer shall
confirm the deferred income tax assets and reduce the goodwill, if the goodwill is insufficient, the difference shall be
recognized as the current profit and loss; Except for the above situation, the deferred income tax assets related to the
enterprise merger shall be included in the current profit and loss.
For business merger not under the same control achieved through multiple transactions step by step, it should be
determined whether the multiple transactions belongs to "package deal" according to the Ministry of Finance on the
notice of the accounting standards interpretation no. 5 (accounting [2012] no. 19) and "accounting standards no. 33 —
— consolidated financial statements" article 51 criteria about "package deal" (see Note Ⅳ .6, judging criteria of the
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
control and preparation of the consolidated financial statements), For "package transaction", refer to the previous
paragraphs in this section for accounting treatment; For those not belong to "package transaction", distinguish
individual financial statements from consolidated financial statements in the accounting statement:
In individual financial statements, the sum of the book value of the equity interest of the acquiree held prior to the
purchase date and the cost of new investment on the purchase date is taken as the initial investment cost of the
investment. Where the equity interest of the acquiree held prior to the purchase date involves other comprehensive
income, the other comprehensive income associated with the investment will be accounted for on the same basis as if
the acquiree had disposed of the relevant asset or liability directly (i.e., With the exception of the corresponding share
of the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan by the
acquiree under the equity method, the remainder is transferred to investment income for the period).
In the consolidated financial statements, for the equity of the acquiree held prior to the purchase date, remeasure at
the fair value of the equity at the purchase date, the difference between the fair value and its book value shall be
included in the current investment income; Where the equity of the acquiree held before the purchase date involves
other comprehensive income, the other comprehensive income shall be treated on the same basis as the direct
disposal of the relevant assets or liabilities (i. e., Except for the corresponding share accounted for under the equity
method in the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan by
the acquirer, the remainder is converted to investment income for the period at the purchase date).
(1) Judging standard of the control
The consolidation scope of consolidated financial statements is determined on the basis of control. Control means
that the Company has the power over the investee, enjoys a variable return by participating in the relevant activities of
the investee, and has the ability to use the power of the investee to influence the amount of the return. Among them,
the Company has the current right to enable the Company to dominate the relevant activities of the investee
regardless of whether the Company actually exercises the power; if the return from the investee may change with the
performance of the investee, it shall be deemed to enjoy a variable return; if the Company exercises the decision-
making power as the principal responsible person, the Company shall be deemed to use the power of the investee to
affect the return amount. The scope of the merger includes the Company and all of its subsidiaries. Subsidiary, refers
to the subject controlled by the Company.
The Company judges whether to control the investee on the basis of comprehensive consideration of all relevant facts
and circumstances. The relevant facts and conditions mainly include: the purpose of the establishment of the investee;
the relevant activities of the investee and how to make decisions on the relevant activities; whether the rights of the
Company enable the Company to dominate the relevant activities of the investee; whether the Company enjoys a
variable return by participating in the relevant activities of the investee; whether the Company has the ability to
influence the power of the investee; the relationship between the Company and the other parties, etc. Once changes in
the relevant facts and circumstances lead to changes in the relevant elements involved in the above control definition,
the Company will reevaluate them.
(2) Method of preparing the consolidated financial statements
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
From the date of acquiring the net assets of the subsidiary and the actual control right of production and operation
decisions, the Company will begin to bring it into the merger scope, and stop to do to so after the date of losing the
actual control right. For the subsidiaries under disposal, the operating results and cash flow before the disposal date
have been appropriately included in the consolidated income statement and the consolidated cash flow statement; for
the current disposition subsidiaries, the beginning of the consolidated balance sheet will not be adjusted. For
subsidiaries not under the same control, the operating results and cash flow after the purchase date have been
appropriately included in the consolidated income statement and the consolidated cash flow statement, and the initial
and comparative numbers of the consolidated financial statements will not be adjusted. For the subsidiaries increased
by the enterprise merger under the same control and the merged party under the absorption merger, the operating
results and cash flow from the beginning of the current period to the merger date have been appropriately included in
the consolidated income statement and the consolidated cash flow statement, and the comparison number of the
consolidated financial statements shall be adjusted at the same time.
At the time of preparing the consolidated financial statements, if the accounting policies or accounting periods
adopted by the subsidiary is inconsistent with that adopted by the Company, necessary adjustments to the financial
statements of the subsidiary shall be made in accordance with the accounting policies and accounting periods of the
Company. For subsidiaries not acquired under the same control, their financial statements shall be adjusted on the
basis of the fair value of identifiable net assets on the purchase date.
All significant transaction balances, transactions and outstanding profits within the Company should be offset by the
preparation of the consolidated financial statements.
The shareholders' equity and the net profit and loss of the current period that are not owned by the Company should
be listed separately as the minority shareholders' equity and the minority shareholders' profit and loss under the
shareholders' equity and net profit in the consolidated financial statements. The share of the current net profit and
loss of the subsidiary belonging to the minority shareholders' equity shall be listed in the item of "minority
shareholders' profit and loss" under the net profit items in the consolidated profit statement. The loss of the
subsidiary shared by the minority shareholders exceeds the share of the minority shareholders 'equity of the subsidiary
at the beginning of the period, and the number of the shareholders' equity is still reduced.
When the control of the original subsidiary is lost due to the disposal of some equity investment or other reasons, the
remaining equity shall be remeasured according to its fair value on the date of the loss of control. The sum of the
consideration obtained from the disposal of the shares and the fair value of the remaining shares, after deducting the
share of the net assets of the original subsidiary calculated from the purchase date, shall be included in the investment
income of the period of the loss of control. For other comprehensive income related to the equity investment of the
original subsidiary, the accounting treatment of control shall be lost on the same basis as the direct disposal of the
relevant assets or liabilities of the subsidiary. Subsequently, the remaining equity shall be measured in accordance with
the Accounting Standards for Business Enterprises No.2 —— Long-term Equity Investment or Accounting
Standards for Business Enterprises No.22 —— Recognition and Measurement of Financial Instruments and other
relevant provisions, see Note Ⅳ and 14 "Long-term Equity Investment" or Note Ⅳ and 10 "Financial Instruments".
If the Company disposed of the equity investment in the subsidiary until the loss of control through multiple
transactions, it is necessary to distinguish whether the transaction of the equity investment until the loss of control is a
package transaction. If the terms, conditions and economic impact of the disposal of subsidiary equity investments
meet one or more of the following circumstances, usually indicating that those multiple transactions should be treated
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
as package transactions:
For each transaction that does not belong to the package transaction, according to the circumstances, the principle of
"partial disposal of long-term equity investment of subsidiaries without losing control" (see Note Ⅳ ,14 "long-term
equity investment" (2) ④) and "loss of control of the disposal of the original subsidiary" (see the preceding paragraph)
should be applied in the accounting treatment. If the transaction of the subsidiary equity investment until the loss of
control is a package transaction, the transaction shall be treated as a transaction of the disposal of the subsidiary and
losing the control; however, the difference between the disposal price and the share of the net assets of the subsidiary
before the loss of control should be recognized as other comprehensive income in the consolidated financial
statements, and the profit and loss of the period of the loss of control.
Joint venture arrangement means an arrangement under the joint control of two or more parties. The Company shall,
according to the rights and obligations enjoyed in the joint venture arrangement, divide the joint venture arrangement
into joint operation and joint company. Joint operation means the joint venture arrangement in which the Company
enjoys the relevant assets of the arrangement and assumes the liabilities related to the arrangement. Joint company
means a joint venture arrangement in which the Company only enjoys rights to the net assets of the arrangement.
The company's investment in joint venture shall be calculated by equity method, which shall be treated in accordance
with the accounting policies described in Note Ⅳ ,14 "Long-term Equity Investment" (2) ② "Long-term equity
investment calculated by equity method".
The Company, as the joint venture, recognizes the assets held by the Company, the liabilities and the liabilities held by
the shares of the Company, and the liabilities held by the Company. Recognize the income generated by the sale of the
share of the output incurred by the Company, and the expenses incurred by the Company in accordance with the
share of the Company.
When the Company invests or sells assets as the joint venture (the assets do not constitute business, the same should
be applied below) or purchases assets from the joint venture, prior to the sale of such assets to a third party, the
Company recognizes only the portion of the profit or loss arising from the transaction attributable to other
participants in the joint venture. For the asset impairment loss in accordance with the Accounting Standards for
Business Enterprises No.8 —— Asset Impairment, the Company shall recognize the loss for the assets that the
Company purchased the assets, the Company shall recognize the loss according to the share borne by itself.
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to
investments held by the company with a short term (generally due within three months from the purchase date),
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
which are highly liquid, easy to be converted into a known amount of cash and with little risk of change in value.
(1) The method for determining the exchange rate when foreign currency transactions occur
When a foreign currency transaction is initially recognized, the approximate spot exchange rate on the day of the
transaction is used to convert the amount into RMB.
(2) On the balance sheet date, foreign currency currency items and foreign currency non-currency items shall be
treated in the following methods:
① Foreign currency currency items shall be converted through the central parity rate of RMB foreign exchange price
published by the People's Bank of China on the balance sheet date. The exchange difference caused from the
difference between the spot exchange rate on the balance sheet date and the initial recognition date or the previous
balance sheet date shall be included in the current profit and loss.
② Foreign currency non-monetary items measured at historical cost shall still be converted at the spot exchange rate
on the date of the transaction without changing the bookkeeping standard amount; foreign currency non-monetary
items measured at fair value shall be converted at the spot exchange rate on the date of fair value; the difference
between the original bookkeeping standard amount shall be treated as the change of fair value (including change in
exchange rate) and be included into the current profit and loss or other comprehensive income according to the
nature of the non-monetary items.
Monetary items refer to the monetary funds held by the Company and the assets or liabilities to be collected in a fixed
or definite amount.
Non-monetary items refer to items other than monetary items.
(3) Conversion method of foreign currency financial statements of overseas operating entities:
① The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date,
and the owner's equity items except the "undistributed profit" shall be converted at the spot exchange rate at the time
of occurrence;
② The income and expense items in the income statement shall be converted at the exchange rate similar ③ The
conversion difference in the foreign currency financial statements generated from the above ① and ② conversion
shall be listed separately under the owner's equity items in the balance sheet.to the spot exchange rate on the date of
the transaction;
④ The financial statements of overseas operations in hyperinflation economy shall be converted in the following
methods:
Restate the balance sheet items by using the general price index, and restate the income statement items by using the
general price index changes, then convert at the spot rate at the latest balance sheet date.
When the overseas operation is no longer in the hyperinflation economy, the restatement shall be stopped and the
financial statements reconverted according to the price level on the date of cessation.
⑤ In the disposal of overseas operations, the Company shall convert the difference between the foreign currency
financial statements related to the owner equity items of the balance sheet for the current disposal of overseas
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
operations, the conversion difference of the foreign currency financial statements of the disposal portion shall be
calculated at the proportion of the disposal and transferred to the profit and loss of the current disposal.
The financial instrument means a contract that forms the financial assets of one party and forms the financial liabilities
or equity instruments of the other party. When the Company becomes a party to the financial instrument contract, it
recognize the relevant financial assets or financial liabilities.
(1) Financial Assets
According to the business model of managing financial assets and the contractual cash flow characteristics of financial
assets, the Company divides the financial assets into:
The Company manages the business model of financial assets measured at amortized cost, and the contract cash flow
characteristic of such financial assets is consistent with the basic lending arrangement, that is, the cash flow generated
on a specific date is only the payment of the principal and the interest based on the outstanding principal amount. For
such financial assets, the Company adopts the real interest rate method to conduct the follow-up measurement for the
amortized cost, and the profit or loss generated by the amortization or impairment shall be recorded in the current
profit and loss.
The business model of the Company for managing such financial assets is to target both collecting and selling of the
contractual cash flow, and the contractual cash flow characteristics of such financial assets are consistent with the
basic lending arrangement. The Company measures such financial assets at fair value and their changes are included in
other comprehensive income, but the impairment losses or gains, exchange gains and losses and interest income
calculated in accordance with the real interest rate method are included in the current profits and losses.among:
<1> Debt instrument investment measured at fair value and whose changes are included in other c Subsequent
measurement should be performed at fair value. Interest rates, impairment losses or gains and exchange gains and
losses calculated by the real interest rate method shall be included in the current profits and losses, while other gains
or losses shall be included in other comprehensive gains. Upon the termination of recognition, the accumulated gains
or losses previously included in other comprehensive income shall be transferred from other comprehensive income
and recorded in the current profit and loss.
<2> Equity instrument investment measured at fair value and whose changes are included in other comprehensive
income
Subsequent measurement should be performed at fair value. The dividends obtained (except for the part of the
investment cost recovery) shall be included in the current profit and loss, and other gains or losses shall be included in
other comprehensive income. Upon the termination of recognition, the accumulated gains or losses previously
included in other comprehensive income shall be transferred from other comprehensive income and included in the
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
retained earnings.
For non-trading equity instrument investments, the Company may, upon initial recognition, irrevocably designate
them as a financial asset measured at fair value and its changes included in other comprehensive income. The
designation is made on the basis of a single investment, and the relevant investment meets the definition of the equity
instrument from the perspective of the issuer.
The Company classifies the above financial assets measured at amortized cost and the financial assets measured at fair
value and whose changes are included in other comprehensive income as the financial assets measured at fair value
and whose changes are included in the current profit and loss. In addition, at the initial recognition, in order to
eliminate or significantly reduce the accounting mismatch, the Company designated some financial assets as financial
assets measured at fair value and their changes are included in the current profit and loss. For such financial assets, the
Company adopts the fair value for subsequent measurement, and the change in the fair value is included in the current
profit and loss.
The investment in equity instruments over which the Company has no control, joint control and significant influence
will be measured at fair value and its changes will be included in current profit or loss, and listed as trading financial
assets; Those expected to hold for more than one year from the balance sheet date are listed as other non-current
financial assets.
Financial assets are measured at fair value at the initial recognition. For financial assets measured at fair value and
whose changes are included in the current profit and loss, relevant transaction expenses are directly included in the
current profit and loss; for other categories of financial assets, relevant transaction expenses are included in the initial
recognition amount. For accounts receivable or notes receivable arising from the sale of products or the provision of
services that do not include or do not take into account the significant financing components, the amount of
consideration that the Company is expected to be entitled to collect shall be the initial recognition amount.
An equity instrument is a contract that demonstrates ownership of the remaining interest in the assets excluding all
liabilities. The company's issuance (including refinancing), repurchase, sale or cancellation of equity instruments shall
be treated as changes in equity, and the transaction expenses related to equity transactions shall be deducted from the
equity. The Company does not recognize the change in the fair value of the equity instruments.
During the duration of the Company (including the "interest" generated by the "instruments" classified as "equity
instruments"), it shall be treated as profit distribution.
On the basis of expected credit loss, the Company makes impairment provision and confirms the applicable expected
credit loss measurement method (general method or simplified method).
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Credit loss refers to the difference between all the contractual cash flows receivable under the contract and all the
expected cash flows collected, i. e., the present value of the total cash shortage. Among them, for the financial assets
purchased or derived with credit impairment, the Company shall discount the actual interest rate of the financial assets.
The general method of measuring expected credit loss refers to measuring whether the credit risk of the financial
assets (including contract assets and other applicable items, the same below) assessed by the Company on the balance
sheet date has increased significantly since the initial confirmation, the Company measures the loss preparation
according to the amount equivalent to the expected credit loss in the whole duration; if the credit risk does not
increase significantly after the initial confirmation, the Company measures the loss preparation according to the
amount equivalent to the expected credit loss in the next 12 months. For the financial assets purchased or derived
with credit impairment, the Company shall only recognize the cumulative changes of the expected credit loss during
the initial period on the balance sheet date. The Company considers all reasonable and grounded information,
including forward-looking information, when assessing expected credit losses.
For receivables and contractual assets that are formed from transactions regulated by Accounting Standard for
Business Enterprises No. 14 - Revenue and do not have a significant financing component or that the Company does
not take into account the financing component of contracts not exceeding one year, the Company uses a simplified
measurement method to measure the loss provision in terms of the amount of expected credit losses over the entire
duration.
For financial assets other than the above measurement methods, the Company assess whether its credit risk has
significantly increased since the initial recognition. If the credit risk has significantly increased since the initial
confirmation, the Company measures the loss provision according to the amount of the expected credit loss in the
entire duration; if the credit risk does not increase significantly after the initial confirmation, the Company measures
the loss provision according to the amount of the expected credit loss in the next 12 months.
The Company uses available reasonable and warranted information, including forward-looking information, to
compare the risk of default of the financial instrument on the balance sheet date with the risk of default on the initial
recognition date to determine whether the credit risk of the financial instrument has increased significantly since the
initial confirmation.
On the balance sheet date, if the Company determines that the financial instrument only has a low credit risk, it is
assumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.
The Company evaluates expected credit risk and measures expected credit losses on the basis of a single financial
instrument or portfolio of financial instruments. When based on a combination of financial instruments, the Company
divides financial instruments into different combinations based on common risk characteristics.
The Company re-measures the expected credit loss on each balance sheet date, and the increase or reversal of the loss
provision will be recorded as impairment loss or gains. For the financial assets measured at amortized cost, the loss
provision shall offset the book value of the financial assets listed in the balance sheet; for the debt investment
measured at fair value and its changes included in other comprehensive income, the Company confirms the loss
provision in other comprehensive income, which does not offset the book value of the financial assets.
If the default probability of a financial asset within the expected duration determined on the balance sheet date is
significantly higher than the default probability determined during the expected duration determined at the initial
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
confirmation, it indicates that the credit risk of the financial asset is significantly increased. Except in special
circumstances, the Company should use the change of the default risk in the next 12 months as a reasonable estimate
of the change of the default risk during the entire duration to determine whether the credit risk increases significantly
after the initial confirmation.
The Company evaluates credit risks for individual financial assets with significantly different credit risks, such as
receivables of relevant parties, receivables for matters in dispute with the other side or matters involved in litigation or
arbitration, and receivables where the debtor is likely to fail to fulfill repayment obligations.
In addition to individual financial assets that assess credit risk, the Company divides financial assets into different
groups based on common risk characteristics and evaluates credit risk on the basis of a portfolio.
At the end of the period, the Company calculates the estimated credit loss of various financial assets, if the estimated
credit loss is greater than the book amount of the current impairment provision, the difference should be recognized
as an impairment loss; if it is less than the current impairment provision, the difference should be recognized as an
impairment gain.
The company needs to confirm the impairment loss of financial assets measured by amortized cost of financial assets,
debt instruments measured at fair value and whose changes are included in other comprehensive incomes, as well as
lease receivables, mainly including notes receivable, accounts receivable, receivables financing, other receivables,
creditor's rights investment, other creditor's rights investment, long-term receivables, etc. In addition, for the contract
assets and part of the financial guarantee contracts, impairment provisions and credit impairment losses are confirmed
in accordance with the accounting policies described in this part.
<1> The account for receivables and contract assets for expected credit losses based on a combination of credit risk
characteristics
Basis for confirming the
Consolidation category Method of measuring expected credit losses
consolidation
Bank acceptance bill receivable With reference to the historical credit loss experience,
combined with the current situation and the forecast of the
Bill type future economic situation, the expected credit loss should be
Trade acceptance receivable calculated through the default risk exposure and the expected
credit loss rate of the whole duration
With reference to the historical experience of credit loss, and
Receivable-Account receivable age combined with the current situation and the forecast of the
portfolio future economic situation, the comparison table between the
Account receivable age
Contract asset - Account receivable age age of accounts receivable and the expected credit loss rate of
Portfolio the whole duration is prepared to calculate the expected credit
loss
Accounts receivable —— consolidated Based on historical credit loss experience, current conditions
Scope of merger
related parties portfolio and expected future economic conditions
With reference to the historical credit loss experience,
combined with the current situation and the forecast of the
Other receivables - Account receivable future economic situation, prepare the comparison table of
Account receivable age
age portfolio other receivables age and the expected credit loss rate, and
calculate the expected credit loss rate in the next 12 months or
the whole duration
Other receivables - consolidated The allowance for bad debts is measured with reference to
Scope of merger
related parties portfolio historical credit loss experience, combined with current
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Basis for confirming the
Consolidation category Method of measuring expected credit losses
consolidation
conditions and expectations of future economic conditions
<2> Aging combination of aging and expected credit loss ratio comparison table
Account receivable age Expected credit loss rate of accounts Expected credit loss rate of other
receivable receivables
Within 6 months 5.00% 5.00%
Six months to a year 10.00% 10.00%
More than 3 years 100.00% 100.00%
The age of accounts for the self-examination of accounts receivable and other receivables contracts starts from the
month when the payment actually occurs.
For the receivables and contract assets formed by the transactions regulated by the Accounting Standards for Business
Enterprises No.14 —— Income, the Company uses the simplified measurement method to measure the loss
preparation according to the amount equivalent to the expected credit loss within the entire duration.
For leasing receivables, by the accounting standards for enterprises no. 14 —— income specification of transaction
formation, and without significant financing components or the company does not consider not more than a year of
financing receivables and contract assets of the contract, the company using the simplified measurement method,
according to the entire duration of expected credit loss amount measurement loss.
For notes receivable and debt receivables measured at fair value and whose changes are included in other
comprehensive income, if the maturity period is within one year (including one year from the initial confirmation date),
they shall be reported as receivables financing. The Company measures the impairment loss by using the amount of
the expected credit loss of the entire duration.
Debt investment is mainly accounted for by bond investment measured at amortized cost. The Company measures
the impairment loss in the amount equivalent to the expected credit loss within the next 12 months, or for the entire
duration, based on whether its credit risk has increased significantly since the initial recognition.
Other creditor's rights investments shall be mainly accounted for bond investment measured at fair value and whose
changes are included in other comprehensive income. Financing of receivables with a maturity period of more than
one year from the initial confirmation date shall also be reported as other creditor's rights investments. For other debt
investments (including receivables listed in other debt investments), the Company shall measure the impairment loss
by using the amount equivalent to the expected credit loss within the next 12 months or the entire duration based on
whether its credit risk has increased significantly after the initial confirmation. For receivables financing that does not
include major financing components, the Company measures the loss preparation according to the expected amount
of credit loss equivalent to the entire duration.
<3> The criteria for the identification of receivables and contract assets for the provision of expected credit losses on
a single basis
For receivables and contract assets whose credit risk is significantly different from combined credit risk, the Company
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
shall draw expected credit losses according a single item.
If the financial assets meet one of the following conditions, the recognition of them shall be terminated:
ownership of the financial assets to the transferred party;
risks and rewards in the ownership of the financial asset, it has abandoned the control of the financial asset.
Upon the confirmation termination of the investment of other equity instruments, the difference between the book
value and the consideration received and the sum of the fair value directly recorded in other comprehensive income
shall be included in the retained earnings, and the book value of the remaining financial assets and the sum of the fair
value directly recorded in other comprehensive income shall be included in the current profit and loss.
If the Company has neither transferred nor retained almost all the risks and rewards in the ownership of the financial
assets, and has not abandoned the control over the financial assets, the relevant financial assets shall be recognized
according to the extent of the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
The degree to which the continued involvement of the transferred financial assets is involved refers to the risk level
faced by the enterprise caused by the change in the value of the financial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the difference between
the book value of the transferred financial assets and the sum between the sum of the consideration received from the
transfer and the fair value change originally included in other comprehensive income shall be included in the current
profit and loss.
If the partial transfer of the financial assets meets the conditions of termination of recognition, the book value of the
transferred financial assets shall be apportioned according to the relative fair value between the fair value of the
transfer and the sum of the sum of the transfer of the transfer shall be included into the current profit and loss.
For the financial assets sold by recourse, or the endorsement transfer of the held financial assets, the Company needs
to determine whether almost all the risks and rewards in the ownership of the financial assets have been transferred. If
almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferred party,
the recognition of the financial asset should be terminated; if the financial asset retains the ownership of the financial
asset and almost all the risks and rewards in the ownership of the financial asset, the recognition of the financial asset
should not be terminated, if there is no transfer nor retention of almost all the risks and remuneration in the
ownership of the financial asset, the company shall continue to judge whether the enterprise has retained the control
of the asset and conduct treatment according to the principles described in the preceding paragraphs.
If the Company no longer reasonably expects that the contractual cash flow of the financial asset can be recovered in
whole or in part, the book balance of the financial asset will be written down directly. This write-down constitutes the
termination of recognition of the relevant financial assets. This usually occurs when the Company determines that the
debtor has no assets or sources of income to generate sufficient cash flow to repay the amount that will be written
down. However, the financial assets under the Company may allow the process to be affected by the execution
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
activities.
If the write-down financial assets are recovered later, they shall be transferred back as impairment losses and recorded
into the profits and losses of the current period.
(2) Financial liabilities
Financial liabilities are classified at the initial recognition as financial liabilities measured at amortized cost and financial
liabilities measured at fair value and whose changes are included in the current profits and losses.
In addition to the following, the Company classifies financial liabilities as financial liabilities measured at amortized
cost costs:
① Financial liabilities measured at fair value and whose changes are included in current profits and losses, include
transactional financial liabilities (including derivatives of financial liabilities) and financial liabilities designated as
measured at fair value and whose changes are included in current profits and losses.
② The transfer of financial assets does not meet the conditions for termination of recognition or continues to be
involved in the transferred financial assets.
③ The financial guarantee contract not subject to Item ① or ② of this Article and a loan commitment at a below
market rate that is not subject to Item ① of this Article. In a business merger not under the same control, if the
contingent consideration recognized by the Company as the acquirer forms the financial liabilities, the financial
liabilities should be measured at fair value and the changes should be included in the profit and loss of the current
period.
At the time of initial recognition, in order to provide more relevant accounting information, the Company may
designate financial liabilities measured at fair value and recorded in the profit and loss of the current period, which
meets one of the following conditions:
financial liabilities on a fair value basis in accordance with the corporate risk management or investment strategy set
out in formal written documents, and report internally to key management on that basis. Such designation, once made,
cannot be revoked.
The financial liabilities of the Company are mainly financial liabilities measured at amortized cost, including notes
payable and accounts payable, other payables, borrowings and bonds payable, etc. Such financial liabilities are initially
measured according to the fair value after deducting transaction expenses, and subsequently measured by the real
interest rate method. If the term is less than one year (including one year), it should be listed as current liabilities; if the
term is more than one year but is due within one year (including one year) from the balance sheet date, it should be
listed as non-current liabilities due within one year; the rest are listed as non-current liabilities.
When the current obligation of the financial liability has been discharged in whole or in part, the Company terminate
the recognition of the part of the financial liability or discharged obligation. The difference between the book value of
the terminated part and the consideration paid shall be included in the current profit and loss.
If the current obligation of the financial liability (or a part of it) has been discharged, the Company shall terminate the
recognition of the financial liability (or such a part of the financial liability).
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(3) Determination of fair value of financial instruments
For financial instruments with active market, the fair value should be determined by the quotation in the active market.
For financial instruments with no active market, the valuation techniques should be used to determine their fair value.
The company divides the input values used by the valuation technology at the following levels and uses them
successively:
① The first level of input value is an unadjusted offer of the same assets or liabilities in the active market that can be
obtained on the measurement date;
② The second level of input value is the input value directly or indirectly visible besides the first level of input value,
including: the quotation of similar assets or liabilities in the active market; the quotation of the same or similar assets
or liabilities in the nonactive market; the other observable input value other than the quotation, such as the interest
rate and yield curve observable during the normal quotation interval; the input value of market verification, etc.;
③ The third level of input value is the unobservable input value of the relevant assets or liabilities, including interest
rates that cannot be directly observed or cannot be verified by observable market data, stock volatility, future cash
flow of abandonment obligations in business mergers, financial forecasts made using their own data, etc.
(4) Follow-up measurement
After the initial recognition, the Company shall measure different categories of financial assets at amortized cost, fair
value and their changes in other comprehensive income or fair value and their changes in the current profit and loss.
After the initial recognition, the Company shall measure different categories of financial liabilities at amortized cost,
fair value and changes in the current profit or loss or by other appropriate methods.
The amortized cost of a financial asset or financial liability is determined by the initial recognized amount of the
financial asset or financial liability after the following adjustments:
① Deduct the repaid principal.
② Add or subtract the cumulative amortization amount formed by amortifying the difference between the initial
recognized amount and the due date amount by the effective interest rate method.
③ Excluding accumulated losses (only for financial assets).
The Company recognizes the interest income in accordance with the real interest rate method. Interest income should
be calculated from the book balance of financial assets multiplied by the effective interest rate unless:
income according to the amortized cost of the amortized assets and the actual interest rate of the financial assets.
subsequent period, the Company shall determine the interest income according to the amortized cost and actual
interest rate of the financial assets in the subsequent period. If the Company uses the real interest rate method to
calculate the credit impairment in the subsequent period, and the improvement can be objectively related to an event
occurring after the application of the above policy (if the credit rating of the debtor's credit rating is raised), the
Company transfers the real interest rate multiplied by the book balance of the financial assets.
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(1) Classification of inventory
Inventory includes raw materials, in-process products, semi-finished products, finished products, inventory goods,
turnover materials, low-value consumables and contract performance costs, etc. (For "Contract Performance Cost",
see Note Ⅳ, 28 and "Contract Acquisition Cost and Contract Performance Cost".)
(2) Method of valuation of issued issued
The inventory should be priced on the weighted average basis when issued.
(3) The basis for determining the net realizable value of inventory and the withdrawal method for inventory
depreciation reserve
On the balance sheet date, the inventory shall be measured according to the lower cost and the net realizable value. If
the inventory cost is higher than its net realizable value, the provision for inventory depreciation shall be withdrawn
and recorded into the current profit and loss. Net realizable value refers to the amount after the estimated selling price
of inventory minus the estimated cost, estimated sales expenses and related taxes at completion.
The net realizable value of various inventories is determined as follows:
① The inventory of goods directly used for sale, such as finished products, goods and materials used for sale, shall, in
the normal process of production and operation, determine the net realizable value after the estimated selling price of
the inventory minus the estimated sales expenses and relevant taxes.
② For the inventory of materials to be processed, its net realizable value is determined in the normal course of
production and operation by the estimated selling price of the finished products produced less the estimated cost to
be incurred at the time of completion, estimated selling expenses and related taxes.
③ On the balance sheet date, if one part of the same inventory has the contract price without the other part, the net
realizable value shall be determined respectively, and compared with the corresponding cost, the amount of the
withdrawal or reversal of the inventory depreciation provision shall be determined respectively.
Inventory depreciation provision shall be made according to a single inventory item (or inventory category), and
inventory depreciation provision shall be related to the same or similar product series produced or sold in the same
region, and is difficult to be measured separately from other items.
(4) Inventory system
The inventory system adopts the perpetual inventory system.
(5) The amortization method of low-value consumables and packaging
The low-value consumables are amortized by 50-50.
(1) Methods and standards for the recognition of contract assets
The contractual asset means the right to receive a consideration and to depend on any other factor than the passage of
time. Contractual assets and liabilities under the same contract are listed in net value, and contractual assets and
liabilities under different contracts shall not be offset.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(2) Methods for determining and accounting for expected credit losses of contract assets
The provision for impairment of contract assets shall be subject to the expected credit loss method of financial
instruments. For contractual assets that do not include significant financing components, the Company uses a
simplified method to measure loss preparation. For contractual assets containing significant financing components,
the Company measures loss provisions in general methods.
In case of impairment loss of the contract assets, the amount shall be deducted and the "asset impairment loss" shall
debit the provision for impairment of the contract assets.
(1) Non-current assets held for sale or disposal group recognition criteria
If the Company recovers its book value primarily by sale (including the exchange of non-monetary assets with
commercial substance, the same below) rather than the continuous use of a non-current asset or disposal group, it
should be categorized under “held for sale”. The specific criteria shall simultaneously meet the following conditions:
① According to the practice of selling such assets or disposal groups in similar transactions, they can be sold
immediately under current conditions;
② The sale is most likely, where the company has made a resolution on a sale plan and obtained a definite purchase
commitment, and the sale is expected to be completed within a year.
Among them, the disposal group is a group of assets disposed of as a whole by sale or other method in a transaction,
and the liabilities directly related to those assets transferred in the transaction. Where the asset group or asset group
portfolio of the disposal group shares the goodwill acquired in the enterprise merger in accordance with the
Accounting Standards for Business Enterprises No.8-Asset Impairment, the disposal group shall include the goodwill
allocated to the disposal group.
(2) Accounting treatment methods
If the carrying value of non-current assets held for sale and disposal group is higher than the net amount after using
the fair value minus disposal expense when the initial measurement or remeasurement is made at the balance sheet
date, the carrying value should be written down to the net amount after using the fair value minus the disposal
expense, and the amount written down should be recognized as asset impairment loss and included in current profit
or loss, and the impairment provision for assets held for sale should also be made. For the disposal group, the
confirmed asset impairment loss first offset the carrying value of goodwill in the disposal group, and then offset the
book value of the non-current assets stipulated in the accounting Standards for Business Enterprises No.42- -Non-
current Assets held for Sale, Disposal Group and Terminated Operation (hereinafter referred to as the "Standards for
Holding for Sale" in the disposal group). After deducting the selling expense, if the net amount of the fair value of the
disposal group held for sale increased on the subsequent balance sheet date, the amount previously written down shall
be restored and reversed within the amount of asset impairment loss recognized in the non-current assets as
prescribed by the held for sale standard after being classified into the holding for sale category, the carry-back amount
is recognised in profit or loss for the current period and its carrying value is increased in proportion to the carrying
value of each non-current asset in the disposal group as measured by the applicable hold-for-sale criteria other than
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
goodwill; The carrying value of goodwill that has been written off, as well as the asset impairment losses recognized
prior to classifying non-current assets as held for sale under the applicable holding for sale measurement criteria,
cannot be rolled back.
There is no depreciation or amortization of the non-current assets held for sale or the non-current assets in the
disposal group, and the interest and other expenses of the liabilities in the disposal group held for sale continue to be
recognized.
If the non-current assets or disposal group no longer meets the requirements of the held for sale category, it will not
continue to divide the held for sale category or remove the non-current assets from the disposal group held for sale
and measure below:
① The book value before the held for sale category, the amount adjusted for depreciation, amortization or
impairment assumed not to be recognized in the held for sale category;
② Recoverable amount.
(3) Termination of operation
Termination of operations is a component of ownership that is separate and has been disposed of or classified by the
Company under one of the following conditions:
① The component represents an independent main business or a separate main operating area;
② This component is part of a plan associated with the disposition of a separate principal business or a separate main
business area of operation;
③ The component is a subsidiary acquired exclusively for resale.
The Company shall separately report the profit and loss of terminated operation in the income statement, and the
impairment loss and loss amount of terminated operation and loss shall be presented as the profit and loss of
terminated operation.
The long-term equity investment mentioned in this part refers to the long-term equity investment that the Company
has the control, joint control or significant influence on the invested unit. The Company has no control, joint control
or significant influence of the invested unit as a financial assets accounting measured at fair value and included in the
current profits and losses. If the changes is non-tradable, the Company may choose to designate it as financial assets
accounting measured at fair value and whose changes are included in other comprehensive income. The accounting
policies are detailed in Note IV and 10 "Financial Instruments".
Joint control means the common control of the Company over an arrangement in accordance with the relevant
agreement, and the relevant activities of the arrangement must be decided after the unanimous consent of the
participants who share the control right. Significant impact means that the Company has the right to participate in the
decision-making of the financial and operational policies of the investee, but is unable to control or jointly control the
formulation of these policies together with other parties.
(1) Determination of the investment cost
For the long-term equity investment acquired by the enterprise merger under the same control, the initial investment
cost of the long-term equity investment shall be based on the merger date of the share of the book value of the
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
incorporated party in the consolidated financial statements of the final controlling party. The difference between the
initial investment cost of the long-term equity investment and the cash paid, the transferred non-cash assets and the
book value of the debts undertaken shall adjust the capital reserves; if the capital reserve is insufficient, the retained
earnings shall be adjusted. If the issue of equity securities is taken as the merger consideration, the capital reserves
shall be adjusted on the basis of the share of the shareholders' equity of the merged party in the consolidated financial
statements of the final controlling party as the initial investment cost of the long-term equity investment and the total
face value of the issued shares as equity, and the difference between the initial investment cost of the long-term equity
investment and the total face value of the issued shares; if the capital reserve is insufficient to offset, the retained
earnings shall be adjusted. If the equity of the merged party under the same control is acquired through multiple
transactions step by step, and the enterprise merger under the same control, whether it is a "package transaction"
respectively: for a "package transaction", each transaction shall be treated as a transaction that obtains control right. If
it does not belong to the "package transaction", the capital reserves shall be adjusted on the merger date according to
the sum of the book value of the equity of the shares of the final controller and the initial investment cost of the book
value before the merger date; if the capital reserve is insufficient, the retained earnings shall be adjusted. The equity
investment held by the equity method before the merger date or recognized as financial assets measured at fair value
and whose changes are included in other comprehensive income shall not be accounted for for the time being.
For the long-term equity investment acquired by the enterprise merger not under the same control, the merger cost
shall be taken as the initial investment cost of the long-term equity investment on the purchase date, and the merger
cost includes the sum of the assets paid by the acquirer, the liabilities incurred or assumed, and the equity securities
issued. If the equity of the acquirer is acquired step by step through multiple transactions and the enterprise merger is
not under the same control, it shall be treated whether it belongs to the "package transaction" respectively: for the
"package transaction", each transaction shall be treated as a transaction acquiring control. If it does not belong to the
"package transaction", the sum of the book value of the equity investment of the original acquiree plus the new
investment cost shall be the initial investment cost of the long-term equity investment calculated according to the cost
method. If the equity originally held is accounted by the equity method, the relevant other comprehensive income
shall not be treated for the time being.
The fee of audit, legal services, evaluation and consulting and other related management matters incurred by the
consolidated party or the acquirer shall be recorded into the current profits and losses at the time of occurrence.
Equity investments other than long-term equity investments formed by business mergers are initially measured at cost,
which depends on the manner in which long-term equity investments are acquired. It is determined in accordance
with the actual cash purchase price paid by the Company, the fair value of the equity securities issued by the Company,
the value agreed in the investment contract or agreement, the fair value or original book value of the assets exchanged
in the non-monetary asset exchange transaction, and the fair value of the long-term equity investment itself. Fees,
taxes and other necessary expenses directly related to the acquisition of long-term equity investments are also included
in the cost of investment. For the additional investment that can exert a significant impact on the invested unit or
exercise joint control but does not constitute control, the cost of long-term equity investment is the sum of the fair
value of the original equity investment plus the cost of the new investment determined in accordance with Accounting
Standard for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(2) Follow-up measurement and profit and loss recognition methods
The long-term equity investment with joint control (except the co-operator) or significant impact, shall be accounted
by the equity method. In addition, the Company's financial statements use the cost method to account for the long-
term equity investment that can be controlled by the invested unit.
① Long-term equity investment calculated by the cost method
When the cost method is used, the long-term equity investment is priced at the cost of the initial investment, and the
cost of the additional or withdrawn investment is adjusted for the long-term equity investment. In addition to the cash
dividends or profits actually paid at the time of obtaining the investment or the cash dividends declared but not yet
paid included in the consideration, the investment income of the current period shall be recognized in accordance
with the cash dividends or profits declared by the invested unit.
② Long-term equity investment accounted for by the equity method
When using the equity method, if the initial investment cost of a long-term equity investment is greater than the fair
value share of the investee's identifiable net assets when the investment is made, the initial investment cost of the
long-term equity investment should not be adjusted; If the initial investment cost is less than the fair value share of the
identifiable net assets of the investee, the difference should be included in the current profit or loss, and the cost of
long-term equity investment should be adjusted at the same time.
When using the equity method, the investment income and other comprehensive income shall be confirmed according
to the share of the book value of the invested unit; the value and the book value of the long-term equity investment
shall be adjusted according to the profit or cash dividend of the long-term equity investment and included in the
capital reserve. When recognizing the share of the net profit and loss of the invested entity, the net profit of the
invested entity shall be adjusted on the basis of the fair value of the identifiable assets of the invested entity at the time
of obtaining the investment. If the accounting policies and accounting periods adopted by the invested entity are
inconsistent with the Company, the financial statements of the invested entity shall be adjusted in accordance with the
accounting policies and accounting periods of the Company, and the investment income and other comprehensive
income shall be confirmed. For the transactions between the Company and the joint venture, if the assets invested or
sold do not constitute business, the unrealized internal transaction gains and losses shall be offset by the Company,
and the investment gains and losses shall be recognized. However, the unrealized internal transaction loss incurred by
the Company and the invested entity belongs to the impairment loss of the transferred assets and shall not be offset.
If the assets invested by the Company into a joint venture or an associate constitute a business, and the investor thus
obtains long-term equity investment but does not acquire control, the fair value of the invested business shall be taken
as the initial investment cost of the new long-term equity investment, and the difference between the initial investment
cost and the book value of the invested business shall be fully included in the current profit or loss. Where the assets
sold by the Company to a joint venture or associate constitute a business, the difference between the consideration
obtained and the carrying value of the business should be fully included in the current profit or loss. Where the assets
purchased by the Company from associates and joint ventures constitute business, the accounting treatment shall be
carried out in accordance with the provisions of Accounting Standard for Business Enterprises No. 20 - Business
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Combination, and the gain or loss related to the transaction shall be fully recognized.
When confirming the net loss incurred by the investee, the book value of the long-term equity investment and the
other long-term equity that substantially constitute the net investment of the investee shall be written down to zero. In
addition, if the Company has the obligation to bear additional losses to the investee, the estimated liabilities shall be
recognized according to the expected obligations and included in the current investment losses. If the invested entity
achieves net profit in the following period, the Company shall resume the recognized income share after the earnings
share makes up for the unrecognized loss share.
③ Acquisition of minority equity
At the time of preparing the consolidated financial statements, the capital reserves shall be adjusted due to the
difference between the new long-term equity investment of the purchase of minority shares and the share of the net
assets continuously calculated by the subsidiary since the purchase date (or merger date). If the capital reserves are
insufficient to write down, the retained earnings shall be adjusted.
④ Disposal of long-term equity investments
In the consolidated financial statements, the parent company shall partially dispose of the long-term equity investment
of the subsidiary and the difference between the disposal price and the long-term equity investment of the subsidiary
and the disposal of the relevant accounting policies described in Note IV, 6, "Judgment Standard for Control and
Preparation Method of Consolidated Financial Statements" (2).
For the disposal of long-term equity investment under other circumstances, the difference between the book value
and the actual obtained price shall be recorded in the current profit and loss.
For the long-term equity investment calculated by the equity method, if the remaining equity after disposal is still
calculated by the equity method, the other comprehensive income parts originally included in the shareholders' equity
shall be treated on the same basis as the direct disposal of the related assets or liabilities of the invested unit in the
corresponding proportion. The owner's equity recognized due to the owner's equity other than the net profit and loss,
other comprehensive income and profit distribution shall be transferred to the profit and loss of the current period.
If a long-term equity investment is accounted for by the cost method and the remaining equity is still accounted for by
the cost method after disposal, the other comprehensive income recognized by the equity method or financial
instrument recognition and measurement criteria before the acquisition of control of the investee shall be accounted
for on the same basis as the direct disposal of the relevant assets or liabilities by the investee. And carry forward the
current profit and loss pro rata; Changes in owners' equity other than net profit and loss, other comprehensive income
and profit distribution in the net assets of investee units recognized as a result of the equity method of accounting are
carried forward to current profit and loss in proportion.
If the Company loses control of the investee due to the disposal of part of the equity investment, when preparing
individual financial statements, the remaining equity after disposal can exercise common control or exert significant
influence on the investee, it shall be calculated according to the equity method, and when the remaining equity is
regarded as self-acquired, it shall be adjusted by the equity method. If the remaining equity after disposal cannot jointly
control or exert significant influence on the investee, it shall be accounted for in accordance with the relevant
provisions of the Standards for the recognition and measurement of financial instruments, and the difference between
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the fair value and the carrying value on the date of loss of control shall be included in the current profit or loss. Other
comprehensive income recognised by the equity method or financial instrument recognition and measurement
standards before the Company acquired control of the investee shall be accounted for on the same basis as the direct
disposal of the relevant assets or liabilities by the investee when it loses control of the investee. Changes in owner's
equity other than net profit and loss, other comprehensive income and profit distribution in the net assets of the
investee recognized by the equity method are transferred to current profit and loss when the control over the investee
is lost. Among them, if the remaining equity after disposal is accounted for by the equity method, other
comprehensive income and other owner's equity are carried forward in proportion; If the remaining equity after
disposal is changed to accounting treatment according to the recognition and measurement standards of financial
instruments, other comprehensive income and other owners' equity are all carried forward.
If the Company loses its joint control or significant impact on the invested unit due to the disposal of part of the
equity investment, the remaining equity after disposal shall be calculated according to the financial instrument
recognition and measurement criteria, and the difference between the fair value and the book value on the day of the
loss of joint control or significant impact shall be recorded into the current profit and loss. The original equity
investment due to the equity method and accounting confirmation of other comprehensive income, in the termination
of the accounting of the basis of the same, because of the investment except the net profit and loss, other
comprehensive income and profit distribution of other owner's equity changes, when the equity method all into the
current investment income.
The Company will dispose of its equity investment in subsidiaries step by step through multiple transactions until it
loses control. If the above transactions are package transactions, each transaction shall be accounted for as one
transaction disposing of the equity investment of subsidiaries and losing control, and the difference between the
disposal price of each disposal and the book value of the long-term equity investment corresponding to the equity
disposed of before the loss of control shall be the difference between the disposal price and the long-term equity
investment corresponding to the equity disposed before the loss of control. First recognized as other comprehensive
income, when the loss of control is transferred to the loss of control of the current period profit and loss.
See Note Ⅳ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method of
impairment provisions for long-term equity investment.
The company's investment real estate refers to the real estate held for the purpose of earning rent or capital
appreciation, or both, including the land use right leased, the land use right held and ready to be transferred after the
appreciation, and the leased buildings. The investment real estate shall be initially measured according to the cost, and
the cost model shall be adopted to subsequently measure the investment real estate or the fair value model on the
balance sheet date.
(1) Adopt the cost model
Investment real estate is depreciated or amortized by the following useful life and estimated net residual value rate:
Name Service life Estimated net residual value Annual depreciation rate or
rate amortization rate
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Name Service life Estimated net residual value Annual depreciation rate or
rate amortization rate
House and buildings 20-40 years 0%-10% 2.25%-5.00%
See Note Ⅳ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method of investment
real estate impairment provisions using the cost model.
(2) Adopt the fair value model
Without depreciation or amortization of the investment real estate, the book value shall be adjusted based on the fair
value of the investment real estate on the balance sheet date, and the difference between the fair value and the original
book value shall be included in the current profit and loss.
An investment property shall be derecognized on disposal or when it is permanently withdrawn from use and no
future economic benefits are expected from its disposal. Proceeds from the sale, transfer, retirement, or destruction of
the investment property deducting its carrying amount and related taxes shall be recognized in profit or loss for the
current period.
(1) Fixed assets recognition conditions
Fixed assets refer to tangible assets held for the production of goods, providing labor services, leasing or operation
and management, and with a service life of more than one fiscal year. Fixed assets shall be confirmed if the following
conditions are met:
① Economic benefits related to this fixed asset are likely to flow into the enterprise;
② The cost of this fixed asset can be measured reliably.
(2) Various depreciation methods of fixed assets
All kinds of fixed assets adopt the straight line method and make depreciation according to the following useful life,
estimated net residual value rate and depreciation rate:
Categories Depreciation method Service life Estimated net salvage rate Yearly depreciation rate
Houses and buildings straight-line depreciation 20-40 years 0%-10% 2.25%-5.00%
method
Ships and nets straight-line depreciation 5-30 years 3%-5% 3.17%-19.40%
method
Machinery equipment straight-line depreciation 8-20 years 0%-10% 4.50%-12.50%
method
Delivery equipment straight-line depreciation 5 years 0%-10% 18.00%-20.00%
method
Furniture and office straight-line depreciation 5 years 0%-10% 18.00%-20.00%
equipment method
(3) See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and the withdrawal method of
the impairment provisions of fixed assets.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
The cost of the project under construction shall be determined according to the actual project expenditure, including
the project expenditure incurred during the period under construction, the capitalized borrowing expenses before the
project reaches the predetermined usable state and other related expenses.
The construction under construction is carried forward to fixed assets after reaching the predetermined usable state, in
which the construction under construction is carried forward to fixed assets when delivered with fishing conditions,
and the construction is carried forward to fixed assets when the physical construction (including installation) work has
been fully completed or has been substantially completed.
See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and impairment provision method
of the construction under construction.
(1) If the loan expenses incurred by the Company can be directly attributed to the purchase, construction or
production of the assets meeting the capitalization conditions, they shall be capitalized and included in the relevant
asset costs. Assets that meet the capitalization conditions refer to the assets such as fixed assets, investment real estate
and inventory that take a long time (usually one year or more) for purchase, construction or production activities to
reach the predetermined marketable status. Other borrowing expenses shall be recognized as expenses according to
the amount of occurrence and shall be included in the current profits and losses. Borrowing expenses include
borrowing interest, amortization of discount or premium, auxiliary expenses and exchange difference due to foreign
currency borrowing, etc.
(2) If the borrowing costs meet the following conditions, the capitalization should begin:
① Asset expenditure has been incurred, including the cash paid for the purchase, construction or production of assets
that meet the conditions for capitalization, the transfer of non-cash assets or the assumption of interest-bearing debts;
② Borrowing expenses have been incurred;
When the purchase, construction or production of assets meeting the capitalization conditions reach the
predetermined usable or marketable status, the borrowing expenses shall be capitalized.
In case of the abnormal interruption of the assets for more than 3 consecutive months, the capitalization of the
borrowing expenses shall be suspended. The borrowing expenses incurred during the interruption period are
recognized as expenses and recorded into the current profits and losses until the purchase and construction of the
assets or the production activities resume. If the interruption is due to the capitalization of the qualified assets
purchased or produced as necessary for the intended usable or marketable status, the capitalization of the borrowing
costs continues.
(3) During the capitalization period, the amount of interest (including amortization of discounts or premiums)
capitalized for each accounting period shall be determined as follows:
① Where a special loan is borrowed for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount shall be determined by the interest expense actually incurred in the current
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
period, minus the interest income of the unused borrowing funds deposited in the bank or the investment income
obtained from temporary investment.
② Where a general loan is occupied for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount of interest on which the general loan shall be capitalized shall be calculated
and determined by multiplying the weighted average of the accumulated asset expenditure exceeding the special loan
by the capitalization rate of the general loan occupied. The capitalization rate is determined according to the weighted
average interest rate of general borrowing.
Where there is a discount or premium for the loan, the amount of discount or premium for each accounting period
shall be determined according to the actual interest rate method and the amount of interest for each period shall be
adjusted.
During the capitalization period, the amount of interest in each accounting period shall not exceed the amount of
interest actually incurred by relevant loans in the current period.
(4) The auxiliary expenses incurred by special loans, which are incurred before the assets purchased, built or produced
eligible for capitalization reach the predetermined usable or marketable state, are capitalized according to the amount
incurred at the time of occurrence and are included in the cost of the assets eligible for capitalization; If an asset that is
purchased, built or produced and eligible for capitalization has reached a predetermined usable or marketable state, it
shall be recognized as an expense based on the amount incurred at the time of occurrence and recorded in the current
profit or loss. Auxiliary expenses incurred by general loans are recognized as expenses according to their amount at
the time of occurrence and are included in current profit or loss.
(1) Intangible assets refer to the identifiable non-monetary assets owned or controlled by an enterprise without a
physical form. Intangible assets are initially measured according to the cost. Analyze and judge the service life of the
intangible assets when they are acquired.
(2) The Company generally determines the useful life of intangible assets:
① Information on the usual life cycle of the product produced with the asset;
② Technology, process and other aspects of the current situation and the estimation of the future development trend;
③ The market demand for the products or services produced with the asset;
④ Action expected by current or potential competitors;
⑤ Prospective maintenance expenditures to maintain the ability to bring economic benefits to the asset, and the
Company's ability to expect to pay related expenditures;
⑥ Relevant legal provisions or similar restrictions on the control period of the asset, such as the concession period,
lease term, etc.;
⑦ The correlation with the service life of other assets held by enterprises.
If it is impossible to foresee the period of intangible assets to bring economic benefits to the Company, it shall be
regarded as intangible assets with uncertain service life.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(3) For intangible assets with limited service life, the system shall amortize reasonably (or straight line method) during
the service life. At the end of each year, the Company will review the service life and amortization methods of
intangible assets with limited service life. If the service life and amortization method of intangible assets are different
from the previous estimate, the amortization period and amortization method will be changed. For the intangible
assets with limited service life, the service life and the estimated net residual value rate of the intangible assets are as
follows:
Name Service life Judging basis Estimated net
of service life salvage rate
Land use right 42-49 years Term of land certificate 0%
Software 5-10 years Historical experience 0%
See Note Ⅳ and 20 "Long-term asset Impairment" for the impairment test method and impairment provision
withdrawal method of intangible assets with limited service life.
(4) Intangible assets with uncertain service life include intangible assets that have been continued to be used after
amortization, while intangible assets with uncertain service life shall not be amortized
(5) Internal research and development
stage, including:
substantially improved materials, devices, products, etc.
the current period's profit and loss; expenditures during the development phase that meet the following conditions are
recognized as intangible assets:
with the intangible assets exist in the market or that the intangible assets themselves exist in the market, and that the
intangible assets will be used internally, their usefulness shall be proved;
assets and having the ability to use or sell the intangible assets;
For non-current non-financial assets such as fixed assets, construction projects under construction, use assets with
limited use life, intangible assets, investment real estate measured by cost mode and long-term equity investment in
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
subsidiaries, joint ventures and joint ventures, the Company determines whether there are signs of impairment on the
balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and the impairment
test shall be conducted. Goodwill, intangible assets with uncertain service life and intangible assets that have not yet
reached the usable state shall be subject to impairment test every year, regardless of whether there are signs of
impairment.
If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value, the
impairment provision shall be drawn according to the difference and included in the impairment loss. The recoverable
amount is the higher value between the fair value of the asset minus the disposal expense and the present value of the
estimated future cash flow of the asset. The fair value of the asset is determined according to the price of the sales
agreement in fair trading; if there is no sales agreement but there is an active asset market, the fair value is determined
according to the acquiree bid of the asset; if there is no sales agreement and asset active market, the fair value of the
asset is estimated on the basis of the best-available information. The disposal expenses include legal expenses related
to the disposal of the assets, related taxes, handling fees, and direct expenses incurred to bring the assets to a
marketable status. The present value of the estimated future cash flow of the asset shall be determined according to
the amount of the estimated future cash flow generated during the continuous use of the asset and the final disposal at
an appropriate discount rate. The asset impairment provision is calculated and confirmed on the basis of a single asset.
If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be
determined by the asset group to which the asset belongs. Asset groups are the minimum portfolio that can
independently generate cash inflows.
In the case of impairment test of goodwill, the carrying value of goodwill is allocated to the relevant asset group
reasonably from the date of purchase; if it is difficult to allocate to the relevant asset group, it shall be allocated to the
relevant asset group portfolio. The relevant asset group or asset group portfolio is an asset group or asset portfolio
that can benefit from the synergies of business consolidation and is not greater than the reporting division determined
by the Company.
When the impairment test is conducted on the relevant asset group or asset group portfolio containing goodwill, if
there are signs of impairment in the asset group or asset group portfolio related to goodwill, the impairment test shall
be conducted on the asset group or asset group portfolio excluding goodwill to calculate the recoverable amount and
confirm the corresponding impairment loss. Then conduct impairment tests on the asset group or portfolio of asset
groups containing goodwill, Compare its carrying value to the recoverable amount, If the recoverable amount is lower
than the carrying value, The amount of impairment loss is first offset against the carrying value of goodwill in the asset
group or portfolio, According to the proportion of the book value of other assets except goodwill in the asset group
or asset group portfolio, offset the book value of other assets, Provided that the book value of each asset after
deduction shall not be lower than the fair value of the asset minus the net amount (if certain) and the present value of
the estimated future cash flow of the asset (if certain), And not lower than zero.
Once the impairment loss of the above assets is recognized, the value shall not be recovered in the later period.
Long-term deferred expenses are the expenses incurred by the Company that shall be borne by the current and
subsequent period for more than one year (excluding one year). Long-term deferred expenses are equally amortized
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
during the benefit period. If the long-term deferred expenses cannot benefit the later accounting period, the
unamortized surplus value will be transferred to the current profit and loss.
Long-term deferred expenses are amortized on a straight-line basis over the following period:
Name Amortization period
Renovation costs 2-10 years
Contract liabilities reflect the obligation to transfer goods to the customer for the consideration received or receivable.
If the customer has paid the contract consideration or has obtained the right to receive the contract consideration
unconditionally before the transfer to the customer, the contract liabilities shall be recognized according to the
amount received or receivable when the actual payment and the amount due. Contractual assets and liabilities under
the same contract shall be listed in net value, and contractual assets and liabilities under different contracts shall not be
offset.
(1) The range of employee compensation
Employee compensation refers to the various forms of compensation or compensation given by the company for the
service provided by the employee or for the termination of the labor relationship. Employee compensation includes
short-term compensation, post-resignation benefits, dismissal benefits and other long-term employee benefits. The
benefits provided by the company to the employees' spouses, children, dependants, family of the deceased employees
and other beneficiaries also belong to the employee compensation.
(2) Short-term compensation refers to the full employee compensation to be paid within 12 months after the end of
the annual reporting period provided by relevant services.
Short-term salary includes social insurance premiums such as employees' wages, bonuses, allowances and subsidies,
employee welfare, medical insurance, working injury insurance and maternity insurance, housing provident fund, trade
union fund and employee education fund, short-term paid absence, short-term profit sharing plan, non-monetary
welfare and other short-term salary.
Short-term compensation during the accounting period when the employee provides services for the company, the
actual short-term compensation is recognized as a liability and recorded in the current profit and loss or related asset
costs.
Post-resignation benefits refer to all forms of remuneration and benefits provided by the Company for the retirement
of the employee or the termination of the labor relationship with the Company, except for short-term compensation
and dismissal benefits.
Post-resignation benefit plan include the defined contribution plan and the defined benefit plan. Among them, the
defined contribution plan is the post-resignation welfare plan in which the Company no longer assumes further
payment obligations; the defined benefit plan refers to the post-resignation welfare plan other than the defined
contribution plan.
The defined contribution plan includes basic endowment insurance, unemployment insurance, etc. During the
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
accounting period when the employee provides the service, the amount payable calculated according to the defined
contribution plan shall be recognized as liabilities and included in the current profit and loss or related asset costs.
At the end of the reporting period, the employee compensation costs arising from the defined benefit plan should be
recognized as the following components:
① Service costs, including current service costs, past service costs, and settlement gains or losses.
② Net interest on the net liabilities or net assets of the defined benefit plan, including interest income on the planned
assets, interest expense on the obligations of defined benefit plan, and interest affected by the asset ceiling.
③ Remeasure the change in the net liabilities or net assets of the defined benefit plan.
Unless other accounting standards require or allow employee benefit costs to be included in asset costs, items ① and
② above shall be included in current profits and losses; item ③ shall be included in other comprehensive benefits and
will not be returned to profits and losses during subsequent accounting periods, but these amounts recognized in
other comprehensive benefits may be transferred within the equity.
Under the defined benefit plan, the past service costs are recognized as current expenses on the following date:
Determine a settlement benefit or loss when setting a defined benefit plan settlement.
(3) Dismissal benefits refer to the compensation given by the Company to the employee to terminate the labor
relationship with the employee before the expiration of the labor contract, or to encourage the employee to voluntarily
accept the reduction.
If the Company provides dismissal benefits to the employees, the Company shall confirm the liabilities and include in
the current profit and loss: when the Company cannot unilaterally withdraw the dismissal benefits due to the
termination of labor relationship plan or reduction proposal; when the Company recognizes the costs or expenses
related to the restructuring of the dismissal benefits.
(4) Other long-term employee benefits refer to all employee compensation except short-term compensation, post-
resignation benefits and dismissal benefits, including long-term paid absence, long-term disability benefits, long-term
profit sharing plan, etc.
Other long-term employee benefits provided by the Company to employees that meet the conditions of the deposit
plan shall apply to the relevant provisions of the above deposit plan.
Except for the circumstances that meet the conditions for the defined contribution plan, other long-term employee
welfare net liabilities or net assets shall be recognized and measured in accordance with the relevant provisions of the
defined benefit plan. At the end of this period, the Company recognizes the employee compensation costs generated
by other long-term employee benefits as the following components:
① Service cost.
② Net interest on other long-term employee welfare net liabilities or net assets.
③ Re-measure changes in the net liabilities or net assets of other long-term employee benefits.
In order to simplify the relevant accounting treatment, the total net amount of the above items is included in the
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
current profit or loss or related asset costs.
liabilities:
(1) This obligation is the current obligation of the enterprise;
(2) Performing this obligation is likely to lead to the outflow of economic benefits from the enterprise;
(3) The amount of the obligation can be reliably measured.
The estimated liabilities shall be initially measured at the best estimate of the expenditures required to meet the
relevant current obligations.
(4) Onerous contract
An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed
the economic benefits expected to be received under it. When a contract to be fulfilled becomes an onerous contract,
and the obligations arising from it meets the aforementioned recognition conditions of provisions, the portion of the
estimated contract loss that exceeds the recognized impairment loss (if any) on the subject assets of the contract shall
be recognized as a provision.
(5) Constructive obligation
For detailed formal restructuring plans that have been announced, the direct expenses related to restructuring shall be
recognized as the provision amount, provided that the aforementioned recognition conditions of provisions are met.
[For constructive obligations in the sale of part of a business, restructuring-related obligations are recognized only
when the Company promises to sell part of its business (that is, a binding sale agreement has been executed).]
(1) Accounting treatment method of share payment
Share payment is a transaction that grants the equity instruments or assumes the liabilities determined based on the
equity instruments for the purpose of obtaining the services provided by the employee or other parties. Share payment
is divided into share payment settled by equity and share payment settled in cash.
① Share payments settled by equity
Share payment for equity settlement of services provided by the employee, should be measured at the fair value of the
employee equity instrument on the grant date. The amount of the fair value shall be calculated in the relevant costs or
expenses on the basis of the best estimate of the waiting period, including the relevant costs or expenses on the grant
date and the capital reserve shall be increased accordingly.
On each balance sheet date during the waiting period, the Company makes the best estimate and corrects the
estimated number of feasible equity instruments based on the latest subsequent information, including changes in the
number of feasible employees. The impact of the above estimate shall be included in the relevant costs or expenses of
the current period, and the capital reserves shall be adjusted accordingly.
In exchange for the equity settlement of the fair value of the service can be measured reliably, according to the fair
value of the service in the date, if the fair value of the other services cannot be measured reliably, but the fair value of
the equity instrument can be measured reliably, according to the fair value of the date of the service, included in the
relevant costs or expenses, and increase the shareholders' equity accordingly.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
② Payment in shares settled in cash
Share payments settled in cash are measured at the fair value of the liabilities determined on the basis of shares or
other equity instruments undertaken by the Company. If the right is available immediately after the grant, increase the
liabilities on the grant date and the amount of the right on the basis of the best estimate on the basis of the fair value
of the liabilities.
On each balance sheet date and settlement date before the settlement of relevant liabilities, the fair value of the
liabilities shall be measured and the changes shall be included in the current profit and loss.
(2) Modify or terminate the relevant accounting treatment of the share payment plan
When the Company changes the share payment plan, if the modification increases the fair value of the granted equity
instrument, the increase in the acquired services shall be recognized according to the increase in the fair value of the
equity instrument. The increase in the fair value of the equity instrument is the difference between the fair value of the
equity instrument on the date of amendment before and after the amendment. If the amendment reduces the total fair
value of share payment or adopts any other way unfavorable to the employee, the accounting for the services obtained
shall be deemed to have never occurred unless the Company cancels part or all of the granted equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the Company will treat the cancellation of the
granted equity instrument as an accelerated exercise of right, immediately record the amount recognized during the
remaining waiting period into the current profit and loss, and recognize the capital reserves. If the employee or other
party can choose to meet the non-viable conditions but not within the waiting period, the company will cancel them as
the interest granting instrument.
(3) Accounting for share payment transactions involving the Company and shareholders or actual controllers of the
Company
Where one of the settlement enterprises of the Company and the enterprise receiving services is outside the Company,
and one of the other is outside the Company, accounting treatment shall be made in the consolidated financial
statements of the Company in accordance with the following provisions:
① If the settlement enterprise settles with its own equity instrument, the share payment transaction shall be treated as
share payment for equity settlement; in addition, as share payment for cash settlement.
If the settlement enterprise is an investor of the service enterprise, it shall be recognized as a long-term equity
investment in the service enterprise according to the fair value of the equity instrument on the grant date, and the
capital reserves (other capital reserves) or liabilities shall be recognized.
② If the service enterprise has no settlement obligation or the employee is its own equity instrument, the share
payment transaction shall be treated as the share payment for equity settlement; if the service enterprise has the
settlement obligation and is not its own equity instrument, the share payment transaction shall be treated as the share
payment for cash settlement.
For the share payment transaction between the enterprises in the Company, and the settlement enterprise is not the
same enterprise, the confirmation and measurement of the share payment transaction in the individual financial
statements of the service enterprise and the settlement enterprise shall be handled in accordance with the above
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
principles.
(1) The distinction between perpetual bonds and preferred shares
Financial instruments such as perpetual bonds and preferred shares issued by the Company, which meet the following
conditions:
① The financial instrument does not include the contractual obligation to deliver cash or other financial assets to
other parties, or to exchange financial assets or financial liabilities with other parties under potentially adverse
conditions;
② If the financial instrument is required to be settled, if the financial instrument is not derivative, the contractual
obligation of delivering a derivative, the Company can only settle the financial instrument by exchanging a fixed
amount of cash or other financial assets in a fixed amount of its own equity instruments.
Except for financial instruments that can be classified as equity instruments under the above conditions, other
financial instruments issued by the Company shall be classified as financial liabilities.
If the financial instruments issued by the Company are compound financial instruments, they shall be recognized as a
liability according to the fair value of the liability component, and shall be recognized as "other equity instruments"
according to the amount actually received after deducting the fair value of the liability component. The transaction
costs incurred in the issuance of compound financial instruments shall be apportioned between the liability
components and the equity component according to their respective proportion to the total issuance price.
(2) Accounting methods for perpetual debt and preferred shares, etc
Financial instruments such as perpetual debt or preferred shares, or financial instruments classified as financial
liabilities, whose related interest, dividends (or dividends), gains or losses, and gains or losses arising from redemption
or refinancing, are included in the current profit and loss, except for the borrowing expenses meeting the
capitalization conditions (see Note IV and 18 "borrowing expenses").
For financial instruments such as perpetual bonds and preferred shares classified as equity instruments, upon issuance
(including refinancing), repurchase, sale or cancellation, the Company shall be treated as a change in equity, and the
relevant transaction costs shall also be deducted from the equity. The Company treats the distribution of the equity
instrument holder as a profit distribution.
The Company does not recognize the change in the fair value of the equity instruments.
Accounting policies used for revenue recognition and measurement
(1) Revenue recognition principle
When the contract with the customer meets both of the following conditions, revenue is recognized when the
customer obtains control of the relevant goods:
① The parties have approved the contract and undertake to perform their respective obligations;
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
② The contract specifies the rights and obligations of the parties related to the transfer of the goods or services
provided;
③ The contract has a clear payment clause related to the transferred goods;
④ The contract has commercial substance, that is, the performance of the contract will change the risk, time
distribution or amount of the Company's future cash flow;
⑤ A consideration entitled to for the transfer of goods to a customer is likely to be recovered.
Assess the contract on the start date of the contract, identify the individual performance obligations contained in the
contract, and share the transaction price to each individual performance obligation in relative proportion to the
individual selling price of the goods promised by each individual performance obligation. The influence of variable
consideration, significant financing components existing in the contract, non-cash consideration, payable customer
consideration and other factors are considered in determining the transaction price. Then determine whether the
individual performance obligation should be performed within a certain period or at a certain point, and recognize the
income respectively when performing each individual performance obligation.
If one of the following conditions is met, it shall be performed within a certain period; otherwise, or at a certain point:
time;
and the enterprise has the right to collect money for the accumulated performance that has been completed during the
whole contract period.
For the performance obligations performed within a certain period of time, the revenue shall be recognized according
to the performance progress during that period. The performance progress shall be determined by the input method
or the output method according to the nature of the transferred goods. If the performance progress cannot be
reasonably determined and the cost incurred is expected to be compensated, the income shall be recognized according
to the amount of the cost incurred until the performance progress can be reasonably determined.
If one of the above conditions is not met, the revenue will be apportioned to the transaction price of the individual
performance obligation at the point when the customer obtains control of the relevant goods. When determining
whether the customer has acquired control of the commodity:
<1> The enterprise has the right to current payment for the goods, that is, the customer has the obligation of current
payment for the goods;
<2> The enterprise has transferred the legal ownership of the commodity to the customer, that is, the customer has
the legal ownership of the commodity;
<3> The enterprise has transferred the product to the customer, that is, the customer has the physical possession of
the commodity;
<4> The enterprise has transferred the main risks and remuneration in the ownership of the commodity to the
customer, that is, the customer has acquired the main risks and remuneration in the ownership of the commodity;
<5> The customer has accepted the item;
<6> Other indications that the customer has acquired control of the goods.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(2) Methods of revenue recognition used by the Company
① Revenue recognized by the Company at a point in time in the control over assets
For the foreign sale of seine fish, the Company uses sales contracts and settlement contracts as the basis, recognizes
the change of ownership based on the date of settlement contracts, and then recognizes revenue accordingly.
Most of the Company’s long-line fishing utensil and fishing goods will be transported back to China for sale. Sales
contracts and settlement contracts will be used as the basis. The Company recognizes the change of ownership based
on the date of settlement contracts and then recognizes revenue accordingly.
Processing of aquatic products for domestic sale by the Company: Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.
issues shipment confirmations according to faxed or email orders from domestic clients. The Company delivers goods
based on shipping notes issued by the sales department and confirmed by the warehouse department. After clients
acknowledge receipt, the Company will recognize revenue.
Processing of aquatic products for foreign sale by the Company: After receiving purchase orders from foreign clients,
the international trade department will issue export shipment confirmations and arrange the storage and transport
department to prepare the goods. The Company will revenue sales revenue based on shipping notes, packing lists,
customs declaration forms, and other export documents.
② Revenue recognized by the Company by performance period:
The Company’s revenue from cold storage: After receiving orders from clients and after the goods are put in storage,
the warehouse department will issue warehouse warrants to clients to confirm the specific names, specifications,
pieces, weight, and storage dates. After the warehouse warrants are signed by the warehouse manager and confirmed
by clients, the Company will recognize revenue by calculating the storage fees based on the actual number of storage
days.
(1) Method of determining the amount of assets related to the contract cost
The assets related to the contract costs include the contract acquisition costs and the contract performance costs.
Contract acquisition cost, that is, if the incremental cost incurred in the contract acquisition is expected to be
recovered, it is recognized as an asset as the cost of contract acquisition. Incremental cost refers to the cost that will
not occur without obtaining a contract (such as sales commission, etc.). If the amortization period of the asset does
not exceed one year, it may be recorded into the current profit and loss at the time of occurrence.
Other expenses incurred in the Company to obtain the Contract in addition to the incremental cost expected to be
recovered (e. g. travel expenses, bid expenses, bid expenses, and related expenses incurred in preparing the bid
materials) shall be recorded in the current profits and losses upon occurrence, unless these expenses are clearly borne
by the customer.
Contract performance cost, that is, the cost incurred in the performance of the contract, which does not fall within the
scope of other accounting standards for enterprises other than the Accounting Standards for Business Enterprises
No.14-Revenue (2017 Revision) and meets the following conditions, is recognized as the contract performance cost as
an asset:
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
① This cost is directly related to a current or expected acquired contract, including direct labor, direct materials,
manufacturing costs (or similar costs), costs clearly borne by the Customer, and other costs incurred only because of
the Contract;
② This cost increases the future resources of the enterprise to fulfill its performance obligations;
③ This cost is expected to be recoverable.
(2) Amortization of assets related to the contract costs
Assets related to the contract cost are amortized on the same basis as the recognition of the asset and recorded into
the current profit and loss.
(3) Impairment of assets relating to the contract costs
When determining the impairment of assets related to the contract cost, firstly determine the impairment loss of other
assets recognized in accordance with other relevant business accounting standards; Then, if the book value is higher
than the difference of Item ① minus Item ② , the excess part shall be deducted and recognized as the asset
impairment loss:
① The remaining consideration expected to obtain due to the transfer of the goods related to the asset;
② Estimated estimated for the transfer of the related goods.
During the period before the impairment factors after changes, make the enterprise after the item ① minus the ② of
the difference higher than the asset book value, back to the original asset impairment provision, and included in the
current profits and losses, but the book value of the assets should not exceed the assumed not provision for
impairment of the assets in the book value.
(1) A lease is a contract in which the Company has transferred or acquired the right to control one or more use of
identified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract,
the Company evaluates whether the contract is a lease or contains a lease.
(2) Judgment basis of government subsidies and accounting treatment methods related to assets
The government subsidies related to assets refers to the government subsidies obtained by the Company for purchase
and construction or otherwise forming long-term assets.
Government subsidies related to assets shall be recognized as deferred income. Where government subsidies related to
assets are recognized as deferred income, they shall be recorded into profits and losses in reasonable and systematic
ways within the service life of the relevant assets. The government subsidies measured in accordance with the nominal
amount shall be directly recorded into the current profit and loss.
If the relevant assets are sold, transferred, scrapped or damaged before the end of their service life, the undistributed
balance of the relevant deferred income shall be transferred into the profit and loss of the current period of asset
disposal.
The government subsidies related to the daily activities of the Company shall be included in other profits according to
the essence of the economic business. The government subsidies unrelated to the daily activities of the Company shall
be included in the non-operating income and expenditure.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(3) The judgment basis and accounting treatment method of government subsidies related to income
Revenue-related government subsidies refer to government subsidies other than those related to assets.
For the government subsidies of comprehensive projects, the Company needs to be decomposed into asset-related
parts and earnings-related parts for accounting treatment separately; if it is difficult to distinguish, it shall be classified
as government subsidies related to income.
If government subsidies related to earnings are used to compensate the related expenses or losses of the enterprise in
the future period, they shall be recognized as deferred income and included in the current profits and losses in the
related costs or losses in the period to compensate the related expenses or losses incurred by the enterprise, which
shall be directly recorded in the current profits and losses.
The government subsidies related to the daily activities of the Company shall be included in other profits according to
the essence of the economic business. The government subsidies unrelated to the daily activities of the Company shall
be included in the non-operating income and expenditure.
(4) The time of recognition of government subsidies
Where the government subsidies are monetary assets, they shall be measured at the amount received. The government
subsidy, measured according to the receivable amount, shall be confirmed at the end of the period by meeting the
relevant conditions of the financial support policy, if the government subsidy is non-monetary assets, the government
subsidy shall be confirmed according to the ownership risk and remuneration transfer of the non-monetary assets.
Where non-monetary assets shall be measured at fair value; if the fair value cannot be obtained reliably, they shall be
measured at nominal amount.
When the recognized government subsidies need to be returned, if there is a balance of relevant deferred income, the
book balance of relevant deferred income shall be written down, and the excess part shall be included into the current
profit and loss; if there is no relevant deferred income, it shall be directly recorded in the current profit and loss.
Income tax is accounted by the balance sheet debt method. On the balance sheet date, analyze and compare the book
value of assets and liabilities and their tax basis. If there is a difference between the two, recognize the deferred
income tax assets, deferred income tax liabilities and the corresponding deferred income tax expenses (or earnings).
On the basis of the calculation and determination of the current income tax (i. e., income tax payable for the current
period) and deferred income tax expenses (or income), the sum of the two is recognized as the income tax expenses
(or income) in the income statement, but excluding the income tax impact of transactions or matters directly included
in the owner's equity.
Review the book value of deferred income tax assets. If it is likely that insufficient taxable income amount may be
obtained to offset the benefits of the deferred income tax assets, the book value of the deferred income tax assets shall
be written down.
A lease is a contract in which the Company has transferred or acquired the right to control one or more use of
identified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract,
the Company evaluates whether the contract is a lease or contains a lease.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(1) The Company acts as lessee
The categories of leased assets of the Company are mainly office buildings and cold storage.
① Initial measurement
On the beginning date of the lease term, the Company shall recognize the right to use the lease assets as the use right
assets during the lease term, and recognize the present value of the outstanding lease payment as lease liabilities,
except for short-term lease and low-value asset lease. When calculating the present value of the lease payment, the
Company uses the lease interest rate as the discount rate; if the lease interest rate cannot be determined, the lessee
incremental borrowing rate shall be used as the discount rate.
② Follow-up measurement
If the company can reasonably determine the ownership of the leased assets at the time of the expiration of the lease
term, the depreciation shall be withdrawn within the remaining useful life of the leased assets. If it is impossible to
reasonably determine that the ownership of the lease asset can be acquired at the expiration of the lease term, the
depreciation shall be deducted within the shorter period of the lease term and the remaining service life of the leased
asset.
See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and impairment provision method
of the use assets.
For the lease liabilities, the Company shall calculate the interest expenses for each period during the lease term at the
fixed periodic interest rate, which is included in the current profit and loss or the relevant asset costs. Variable lease
payments not included in the measurement of lease liabilities are recorded into current profit and loss or related asset
costs upon actual occurrence.
After the start of the lease term, when the substantial fixed payment changes, the expected payable amount changes,
the index or ratio used to determine the lease payment changes, the purchase option, the renewal option, or the actual
exercise situation changes, the lease payment, and adjust the book value of the use assets accordingly. If the book
value of the use right assets has been reduced to zero, but the lease liabilities still need to be further reduced, the
remaining amount shall be included in the current profit and loss.
③ Short-term lease and low-value asset leasing
For short-term lease (in the lease start day lease not more than 12 months) and low value asset lease, the company to
simplify processing method, do not confirm the use of assets and lease liabilities, and during the lease period
according to the line method or other system reasonable lease payments into the relevant asset cost or current profit
and loss.
④ Lease obligation
On the beginning date of the lease term, the Company recognizes the present value of the outstanding lease payment
as a lease liability. When calculating the present value of the lease payment, the lease interest rate shall be used as the
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
discount rate. If the interest rate of the lease cannot be determined, the company's incremental borrowing rate shall be
used as the discount rate. The difference between the lease payment and its present value shall be regarded as the
unidentified financing fee, and the interest expense shall be recognized during the lease period at the discount rate of
the present value of the lease payment and included in the current profit and loss. Variable lease payments not
included in the measurement of lease liabilities shall be recorded into the current profit and loss upon actual
occurrence.
After the commencement of the lease term, when the substantially fixed payment amount changes, the expected
payable amount changes, the index or ratio of the lease payment amount changes, the result of the assessment or the
change of the lease payment amount, if the book value of the asset has been reduced to zero, but the lease liabilities
still need to be further reduced, the remaining amount shall be included in the current profit and loss.
(2) The Company acts as lessor
On the commencement date of the lease, the Company divides the lease into financial lease and operating lease based
on the substance of the transaction. A finance lease is a lease that substantially transfers almost all of the risks and
rewards associated with the ownership of the leased assets. Operating lease refers to a lease other than a financial lease.
① Operating lease
The Company adopts the straight-line method to confirm the lease collection amount of the operating lease as the
rental income of each period during the lease term. Variable lease payments related to the operating lease and not
included in the lease collection amount shall be included in the current profit and loss upon actual occurrence.
② The Company’s revenue applicable to the lease standards
The Company’s revenue from vessel leases: Shandong Zhonglu Aquaculture Shipping Co., Ltd. and Habitat
International Corporation lease their vessels by time charter. The Company leases vessels equipped with operating
staff to others for certain periods. During the lease term, the ships are subject to the lessees’ dispatch. Regardless of
whether they run any business using the vessels, the Company charges lease fees to them and bears any fixed costs
incurred (such as staff salaries, maintenance costs, etc.). During the lease term, the fees are settled on a regular basis
between the Company and its clients. The Company recognizes revenue based on the number of lease days as agreed
upon with the clients.
The Company’s property and other lease revenue: After entering into a lease contract with a client, the Company
charges lease fees based on the lease area and the contractual unit price to the lessee and bears any fixed costs (such as
staff salaries, maintenance costs, etc.). During the lease term, the fees are settled on a regular basis between the
Company and the client. The Company recognizes revenue based on the lease period.
(1) Production safety expenditures
In November 2022, the Ministry of Finance and the Ministry of Emergency Management issued the Management
Measures for the Withdrawal and Utilization of Production Safety Expenditures in Enterprise (CZ [2022] No. 136),
and it was implemented on, and as of, the date of issue. At the same time, the Management Measures for the
Withdrawal and Utilization of Production Safety Expenditures in Enterprises (CQ [2012] No. 16) was superseded.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(2) Debt restructuring
When the Company participates in the debt restructuring as a creditor, and pays off the debt with assets or turns the
debt into equity instruments for debt restructuring, it shall be confirmed when the relevant assets meet its definition
and confirmation conditions. If the debt-offset assets are financial assets, see Note IV, 10 and financial instruments; if
the debt-offset assets are non-financial assets, the initial measured amount is the sum of the fair value of the waived
claims and other directly attributable costs. The difference between the fair value of the abandoned claim and the
book value shall be included in the current profit and loss. If the debt is restructured by means of modifying other
terms, the Company shall, according to the substantive modification of the contract, judge whether the original
creditor's right to terminate the confirmation, and confirm a new creditor's right according to the revised terms, or
recalculate the book balance of the creditor's right.
When the company participates in debt restructuring, debt restructuring with assets or converting debt into equity
instruments, terminate the relevant assets and the liquidated liabilities meet the conditions for termination of
confirmation, and measure the fair value of the equity instruments (according to the fair value of the liquidated debt
when the fair value cannot be estimated reliably). The difference between the book value of the paid debts and the
book value of the transferred assets (or the recognized amount of the equity instruments) shall be recorded in the
current profit and loss.
If the debt is restructured by modifying other terms, the Company shall, according to the substantive modification of
the contract, confirm a new debt in accordance with the revised terms, or recalculate the book balance of the debt.
For the exemption of the debt restructuring, the recognition can only be terminated if the Company no longer have
the current obligation to repay the debt restructuring.
(1) Important accounting policy changes
① The Company started to implement the No. 17 of the Accounting Standards for Business Enterprises
Interpretation “on the division between current and non-current liabilities” in 2024. The accounting policy change
has no effect on the Company’s financial statements.
② The Company started to implement the Interpretation of No. 17 of the Accounting Standards for Business
Enterprises Interpretation “ on accounting treatment for sale and leaseback transactions ” in 2024 and made
retrospective application to the sale and leaseback transactions conducted after January 1, 2021. The accounting policy
change has no effect on the Company’s financial statements.
③ The Company started to implement the No. 18 of the Accounting Standards for Business Enterprises
Interpretation “on accounting treatment for warranty-type quality assurance that does not belong to the individual
performance.” The warranty-type quality assurance that does not belong to the individual performance accrued by
the Company was originally recognized in “selling expenses.” In accordance with Article 2 of the No. 18 ASBE
Interpretation, it is now recognized in “cost of sales” and “other operating costs,” which is presented in the
“operating costs” in the income statement. The accounting policy change has no effect on the Company’s financial
statements.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(2) Changes in important accounting estimates
None.
In the process of applying accounting policies, the company, due to the internal uncertainty of business activities,
needs to judge, estimate and assume the book value of the statement items that cannot be accurately measured. These
judgments, estimates and assumptions are based on the past history of the company's management and on considering
other relevant factors. These judgments, estimates and assumptions affect the reported amount of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities on the balance sheet date. However, the actual results of
the uncertainty of these estimates may differ from the current estimates of the Company's management, which in turn
results in a significant adjustment of the carrying amount of the assets or liabilities affected in the future.
The Company shall periodically review the aforementioned judgments, estimates and assumptions on the basis of the
change, the accounting estimates shall be confirmed in the current period; and the current period, the impact shall be
confirmed in the current period and the future period.
On the balance sheet date, the Company shall judge, estimate and assume the amount of the financial statement as
follows:
(1) Revenue recognition
As stated in Note IV, 27, "revenue", the following significant accounting judgments and estimates are involved in
terms of revenue recognition:
Estimating the recovery of the consideration entitled to for the transfer of goods to the Customer:
Enterprises mainly rely on past experience and work to make judgments, these major judgments and estimated
changes may have an impact on the operating income, operating costs, and profit and loss during the period of the
change, and may constitute a significant impact.
(2) Significant accounting judgments and estimates related to leasing
① Identification of leases
When identifying whether a contract is a lease or includes a lease, the Company needs to evaluate whether an
identified asset exists, and the Client controls the right to use the asset for a certain period. In the appraisal, the nature
of the asset, the material replacement right, and whether the client is entitled to almost all the financial benefits arising
from using the asset during the period and to dominate the use of the asset are considered.
② Classification of leases
When the Company, as a lessor, classifies the lease into operating lease and financial lease. In the classification, the
management needs to make an analysis and judgment on whether all the risks and rewards related to the ownership of
the leased assets have been substantially transferred to the lessee.
③ Lease obligation
When the Company is the lessee, the lease liabilities are initially measured at the present value of the lease payments
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
outstanding on the beginning date of the lease term. When measuring the present value of the lease payment, the
Company estimates the discount rate used and the lease term of the lease contract with a renewal option or
termination option. In evaluating the lease term, the Company considers all relevant facts and circumstances related to
the economic benefits of exercising the option, including the expected changes in the facts and circumstances between
the beginning of the lease term and the exercise date of the option. Different judgments and estimates may affect the
recognition of lease liabilities and tenure assets, and will affect the profits and losses of the subsequent period.
(3) Impairment of financial instruments
The Company uses the expected credit loss model to evaluate the impairment of financial instruments, and application
of the expected credit loss model requires the company to make significant judgments and estimates, and to consider
all reasonable and grounded information, including forward-looking information. When making such judgments and
estimates, the Company deduces the expected changes in the debtor's credit risk based on the historical repayment
data combined with economic policies, macroeconomic indicators, industry risks and other factors.
(4) Reserve for inventory depreciation
According to the inventory accounting policy, the company measures the lower cost and the net realizable value, and
sets aside the inventory depreciation provision for the cost that is higher than the net realizable value and the old and
unsalable inventory. The impairment of inventory to net realizable value is based on the sale of inventory and its net
realizable value. The appraisal of inventory impairment requires the management to make a judgment and estimate on
the basis of obtaining conclusive evidence and considering the purpose of holding the inventory and the impact of
matters after the balance sheet date. The difference between the actual result and the original estimate will affect the
withdrawal or reversal of the book value of the inventory and the inventory depreciation provision during the
estimated change period.
(5) Fair value of the financial instruments
For financial instruments that do not have an active trading market, the Company determines its fair value through
various valuation methods. These valuation methods include discounted cash flow model analysis, etc. At the
valuation, the Company estimates the future cash flow, credit risk, market volatility and correlation, and selects the
appropriate discount rate. These relevant assumptions are uncertain, and their changes can have an impact on the fair
value of the financial instruments.
(6) Long-term asset impairment provision
On the balance sheet date, the Company judged the possible impairment of non-current assets except the financial
assets. For the intangible assets with uncertain service life, in addition to the annual impairment test, the impairment
test is also conducted when there are signs of impairment. Other non-current assets other than financial assets shall be
tested for impairment when there is evidence that their book amount is not recoverable.
When the book value of an asset or asset group is higher than the recoverable amount, that is, the net value minus the
disposal expense and the present value of the expected future cash flow, the impairment has occurred.
The net fair value minus the disposal expense is determined by referring to the sales agreement price of a similar asset
in fair trading or the observable market price, minus the incremental cost that may be directly attributable to the
disposal of the asset.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
When predicting the present value of future cash flows, it is necessary to make significant judgments on the output,
selling price, related operating costs and the discount rate used in calculating the present value. In estimating the
recoverable amount, the Company will use all relevant information available, including projections of production,
selling prices and associated operating costs based on reasonable and supportive assumptions.
(7) Depreciation and amortization
After considering the residual value of the investment real estate, fixed assets and intangible assets, the Company shall
make depreciation and amortization according to the straight-line method. The Company periodically reviews the
service life to determine the amount of depreciation and amortization expense that will be included in each reporting
period. The service life is determined by the Company based on past experience with similar assets and combined with
expected technical updates. If previous estimates have changed significantly, depreciation and amortization charges
will be adjusted in the future period.
(8) Deferred income tax assets
Within the limits of potentially sufficient taxable profits to offset losses, the Company recognizes deferred income tax
assets for all unused tax losses. This requires the management of the company to use a lot of judgment to estimate the
time and amount of future taxable profits, and combine the tax planning strategy to determine the amount of deferred
income tax assets that should be recognized.
(9) Income tax
In the normal business activities of the company, there are some uncertainties in the final tax treatment and
calculation of some transactions. Whether some items can be itemized before tax requires the examination and
approval of the competent tax authorities. If the final determination of these tax matters varies from the original
estimated amount, the difference will affect the current income tax and deferred income tax during the final
determination period.
(10) Internal retirement benefits and supplementary retirement benefits
The amount of the company's internal retirement benefits and supplementary retirement benefits expenses and
liabilities is determined according to various assumptions. These assumptions include the discount rate, the average
growth rate of medical expenses, the growth rate of subsidies for retired and retired personnel, and other factors.
Differences in actual results and assumptions will be immediately recognized and charged for the current year.
Although the management believes that reasonable assumptions have been adopted, the change in the actual
experience value and the assumptions will still affect the expenses and liabilities of the Company's internal retirement
benefits and supplementary retirement benefits.
The Company determines its operating segments based on internal organizational structure, management
requirements, and internal reporting systems, and identifies reportable segments on the basis of operating segments.
The financial information of each reportable segment, including revenue, cost of sales, total assets, and total liabilities,
is disclosed in the notes to the financial statements. If the Company is unable to disclose the total assets or total
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
liabilities of each reportable segment, the reasons shall be provided. An operating segment refers to a component of
the Company that meets all of the following conditions:
VI.Tax
Tax Taxation base Tax rate
VAT Output tax minus the deductible input tax 13%， 9%，6%， 5%， exempted
Urban maintenance & construction tax Circulation tax amount payable 7%
Business income taxes taxable income Exempted，25%， 20%， 8%
Explanation of enterprise income tax rate for tax entities with different rates
Name of tax entity Income tax rate
Shandong Zhonglu Oceanic Fisheries Co., LTD Pelagic fishing is exempted, the rest will be taxed at 25%
Shandong Zhonglu Haiyan Oceanic Fisheries Co., LTD exempted
AFRICA STAR FISHERIES LIMITED According to the local regulations of Ghana, the export part is taxed
at 8%, and the domestic part is taxed at 25%
HABITAT INTERNATIONAL CORPORATION exempted
LAIF FISHERIES CO.LTD 25%
ZHONG GHA FOODS COMP ANY LIMITED 25%
YAW ADDO FISHERIES COMPANY LIMTED According to the local regulations of Ghana, the export part is taxed
at 8%, and the domestic part is taxed at 25%
Shandong Zhonglu Aquatic Marine Co., LTD 20%
Shandong Zhonglu Oceanic Refrigeration Co., LTD The part of the aquatic product processing industry is exempted,
and other parts are 25%
Shandong Zhonglu Oceanic (Yantai) Food Co., LTD The part of the aquatic product processing industry is exempted,
and other parts are 25%
Zhonglu Oceanic (Qingdao) Industrial Investment and 25%
Development Co., LTD
Tax Preferences and Approval Documents
In accordance with Item 1 of Article 15 of the Provisional Regulations of the People’s Republic of China on Value-
Added Tax, Item 1 of Article 35 of the Implementation Rules of the Provisional Regulations of the People’s Republic
of China on Value-Added Tax, and the notice of the Ministry of Finance and the State Taxation Administration on
issuing the Notes to the Scope of Taxation for Agricultural Products through CSZ [1995] No. 52, the sales revenue of
the Company and its subsidiaries from long-range fishing falls within the scope of the aquaculture industry as defined
in the foregoing provisions, and hence, it is entitled to the value-added tax preference.
In accordance with the provisions of the Notice on the Comprehensive Roll-out of Business Tax to Value Added Tax
Transformation Pilot Program (No. 36 of 2016), the value-added tax is exempt for the direct or indirect international
freight forwarding services provided by taxpayers. Shandong Zhonglu Aquaculture Shipping Co., Ltd., a subsidiary of
the Company, is exempt from the value-added tax for the relevant sales revenue it has gained.
According to the enterprise income tax law of the People's Republic of China (the President of the People's Republic
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
of China order no. 63), the State Council of the People's Republic of China order no. 512, the implementation of the
law of the People's Republic of China, the Ministry of Finance, state administration of taxation on enjoy preferential
policies of enterprise income tax of agricultural products (try out) notice (tax [2008] no. 149), the Ministry of Finance,
the state administration of taxation on enjoy preferential enterprise income tax of agricultural products about the
scope of supplementary notice (Fiscal and Taxation [2011] No.26) and the relevant provisions of the Announcement
of the State Administration of Taxation on the Implementation of Preferential Enterprise Income Tax Treatment for
Agriculture, Forestry, Animal Husbandry and Fishery Projects (Announcement of the State Administration of
Taxation No.48,2011), The company carries out the primary processing of agricultural products and the entrusted
primary processing of agricultural products, The processing fees it charges, Can be handled according to the duty-free
items of the primary processing of agricultural products. The company engaged in ocean fishing business and primary
processing of agricultural products income is exempted from enterprise income tax. The income obtained from the
company except ocean fishing and primary processing of agricultural products shall be paid at the rate of 25%.
According to the announcement of the Ministry of Finance and the State Administration of Taxation on further
implementing the preferential income tax policies for small and micro enterprises (Announcement No. 13 of 2022 of
the Ministry of Finance and the State Administration of Taxation) and the announcement on the preferential income
tax policies for small and micro enterprises and individual industrial and commercial households (Announcement No.
not exceeding 3 million yuan shall be included in the taxable income at a reduced rate of 25%, and the taxable income
shall be included at 20% .The subsidiary Shandong Zhonglu Aquatic Products Shipping Co., Ltd. shall apply the tax
preference.
VII. Notes to consolidated financial statement items
Unit: RMB
Item Closing balance Opening balance
Cash on hand 550,558.13 615,541.90
Bank deposit 225,001,662.21 283,690,747.60
Other monetary funds 7,800,000.00 28,789,884.20
Total 233,352,220.34 313,096,173.70
Including: total amount of funds
deposited overseas
Note: Funds kept overseas represent cash and bank deposits of foreign subsidiaries; other cash and cash equivalents are guarantee
deposits for notes and letters of guarantee.
(1) Notes receivable that have been endorsed or discounted by the company at the end of the period but
have not yet matured on the balance sheet date
Unit: RMB
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Item Amount of termination recognition at the Amount of non-termination recognition
end of the period at the end of the period
Banker's acceptance 15,000,000.00
Total 15,000,000.00
(1) Disclosure by aging
Unit: RMB
Aging Closing book balance Opening book balance
Within 1 year (included) 43,476,833.16 81,084,925.29
More than 3 years 6,625,052.92 6,501,141.07
Total 52,203,517.64 89,147,260.86
(2) Disclosure by bad debt accrual
Unit: RMB
Closing balance Opening balance
Categor Book balance Bad debt provision Book balance Bad debt provision
y Book Book
Proporti Accrual value Proporti Accrual value
Amount Amount Amount Amount
on ratio on ratio
Among
them:
Account
s
receivab
le
accrued 100.00% 18.28% 100.00% 12.53%
for bad
debts by
combina
tion
Among
them:
Aging
combina 100.00% 18.28% 100.00% 12.53%
tion 17.64 0.97 26.67 60.86 46.24 14.62
Total 100.00% 18.28% 100.00% 12.53%
Category name of bad debt provision accrued by group: Aging combination
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Accounts receivable accrued
for bad debts by combination
Total 52,203,517.64 9,543,390.97
If the bad debt provision of accounts receivable is made based on the general model of expected credit losses:
□Applicable ? Not applicable
(3) Bad debt provisions accrued, recovered or reversed in the current period
Accrual for bad debt provisions in the current period:
Unit: RMB
Change amount of current period
Opening
Category Recovery or Closing balance
balance Accrual Write off Others
reversal
Bad debts of
accounts 11,173,546.24 -1,585,506.41 8,000.00 -36,648.86 9,543,390.97
receivable
Total 11,173,546.24 -1,585,506.41 8,000.00 -36,648.86 9,543,390.97
(4)Top five accounts receivable and contract assets in terms of closing balance summarized by debtor
Accounts receivable of the top five closing balance collected by the debtor
Unit: RMB
Closing balance of
Proportion in the
bad debt provision
Closing balance of total closing
Closing balance for accounts
Closing balance of accounts balance of
Name of entity accounts receivable and
contract assets receivable and accounts
receivable impairment
contract assets receivable and
provision for
contract assets
contract assets
A 6,053,727.40 6,053,727.40 11.60% 302,686.37
B 3,600,962.12 3,600,962.12 6.90% 3,600,962.12
C 3,288,330.00 3,288,330.00 6.30% 164,416.50
D 3,166,977.30 3,166,977.30 6.07% 158,348.87
E 3,016,497.20 3,016,497.20 5.78% 150,824.86
Total 19,126,494.02 19,126,494.02 36.65% 4,377,238.72
Unit: RMB
Item Closing balance Opening balance
Other receivables 89,554,044.25 105,905,380.86
Total 89,554,044.25 105,905,380.86
(1) Other receivables
Unit: RMB
Nature of payment Closing book balance Opening book balance
Earnest money 383,897.69 2,085,454.62
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Dealings and others 111,184,544.62 128,550,878.97
Total 111,568,442.31 130,636,333.59
Unit: RMB
Aging Closing book balance Opening book balance
Within 1 year (included) 71,874,480.35 71,885,732.81
More than 3 years 4,668,681.64 4,702,363.09
Total 111,568,442.31 130,636,333.59
? Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Categor Book balance Bad debt provision Book balance Bad debt provision
y Book Book
Proporti Accrual value Proporti Accrual value
Amount Amount Amount Amount
on ratio on ratio
Among them:
Bad debt
provisio
n 100.00% 19.73% 100.00% 18.93%
accrued
by group
Among them:
Aging
combina 100.00% 19.73% 100.00% 18.93%
tion
Total 100.00% 19.73% 100.00% 18.93%
Category name of bad debt provision accrued by group: Aging combination
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Bad debt provision accrued
by group
Total 111,568,442.31 22,014,398.06
Accrual of bad debt provision by general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
Bad debt provision Expected credit loss for Expected credit loss for Total
Expected credit loss for
the entire duration (no the entire duration
the next 12 months
credit impairment has (credit impairment has
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
occurred) occurred)
Balance on January 1,
Balance on January 1,
Accrual of current
-2,659,173.84 -33,681.46 -2,692,855.30
period
Other changes -23,699.37 -23,699.37
Balance on June 30,
Changes in book balance with significant changes in loss reserves during the current period
□Applicable ? Not applicable
Provision of bad debt allowance during the current period:
Unit: RMB
Change amount of current period
Opening
Category Recovery or Closing balance
balance Accrual Write-offs Others
reversal
Bad debts of
other 24,730,952.73 -2,692,855.30 -23,699.37 22,014,398.06
receivables
Total 24,730,952.73 -2,692,855.30 -23,699.37 22,014,398.06
Unit: RMB
Proportion to total Closing balance
Name of entity Nature of payment Closing balance Aging closing balance of of bad debt
other receivables provision
Laoshan District
Agriculture and 6 months to 1 year,
Government grants 88,287,931.00 79.13% 15,297,913.30
Rural Affairs 1 to 2 years
Bureau, Qingdao
Advances for
Zhang Zhicheng 1,133,589.42 0 to 3 years 1.02% 363,144.84
medical treatment
Shandong State-
owned Assets
Trusteeship fee 900,000.00 0 to 6 months 0.81% 45,000.00
Investment
Holding Co., Ltd.
MRL LIMITED Earnest money 886,275.00 2 to 3 years 0.79% 443,137.50
Shandong
Platform operation
Tianzong Culture 299,000.00 More than 3 years 0.27% 299,000.00
payment
Media Co., Ltd.
Total 91,506,795.42 82.02% 16,448,195.64
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(1) Presentation of advance payments by aging
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 23,114,749.73 98.53% 17,319,421.36 98.27%
More than 3 years 2.81 0.00%
Total 23,460,418.74 17,625,072.87
(2) Top five advance payments in terms of closing balance summarized by payee
Relationship with the Proportion in the total Advance payment Reasons for non-
Company name Closing balance
Group amount time settlement
Not reached the
A Non-affiliate 8,292,177.00 35.35% 2026
settlement period
Not yet fully
B Non-affiliate 5,662,470.97 24.14% 2026
amortized
Not reached the
C Non-affiliate 3,526,011.00 15.03% 2026
settlement period
Not yet fully
D Non-affiliate 2,181,600.00 9.30% 2026
amortized
Not yet fully
E Non-affiliate 2,088,035.75 8.90% 2026
amortized
Total 21,750,294.72 92.71%
Does the company need to comply with disclosure requirements in the real estate industry
No
(1) Category of inventories
Unit: RMB
Closing balance Opening balance
Inventory Inventory
falling price falling price
reserve or reserve or
Item contract contract
Book balance Book value Book balance Book value
performance performance
cost cost
impairment impairment
provision provision
Raw material 204,858,288.96 3,791,269.75 201,067,019.21 188,879,786.63 5,166,031.66 183,713,754.97
Commodities in
stock
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Turnover
materials
Contract
performance 8,995,613.65 8,995,613.65 5,785,199.65 5,785,199.65
cost
Low value
consumables
Total 468,002,080.45 9,686,181.15 458,315,899.30 408,809,417.25 26,903,496.27 381,905,920.98
(2) Inventory falling price reserves and contract performance cost impairment provisions
Unit: RMB
Increased amount in the current Decreased amount in the current
Opening period period
Item Closing balance
balance Reversal or
Accrual Others Others
resale
Raw materials 5,166,031.66 1,374,761.91 3,791,269.75
Commodities in
stock
Total 26,903,496.27 2,039,274.87 19,256,589.99 9,686,181.15
Unit: RMB
Item Closing balance Opening balance
Input tax amount to be deducted for
value-added tax
Advance payment of income taxes 168,508.42 167,437.36
Prepaid other taxes 10,993.29 11,530.75
Total 20,300,693.58 28,152,443.26
Unit: RMB
Increase/decrease in current period
Invest
Openi ment Closin
Openi ng profit Other Declar Closin g
ng balanc and compr ing the Accrua g balanc
Investe Additi Reduci loss ehensi Other distrib l of
balanc e of balanc e of
d onal ng recogn ve equity ution impair
e impair Others e impair
entity invest invest ized incom change of cash ment
(book ment (book ment
value) provisi ment ment under e s divide provisi value) provisi
on the adjust nds or on on
equity ments profits
metho
d
I.Joint venture
II.Associated enterprise
Jinan 441,89 - 239,98
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Qinzhe 2.08 201,90 7.08
n Food 5.00
Techn
ology
Co.,
Ltd.
Subtot 441,89 239,98
al 2.08 7.08
Total 201,90
Recoverable amount to be determined according to the net amount of fair value after deducting disposal expenses
□Applicable ? Not applicable
Recoverable amount to be determined according to the present value of estimated future cash flows
□Applicable ? Not applicable
(1) Investment real estate using cost measurement model
? Applicable □Not applicable
Unit: RMB
Construction in
Item House and building Land use right Total
progress
I. Original book value
amount in current
period
(1) Outsourcing
(2)Transferred from
inventory, fixed assets,
and construction in
progress
(3)Increase in business
merger
amount
(1)Disposal
Other transfers out
II.Accumulated
depreciation and
amortization
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
amount in current
period
(1)Accrual or
amortization
amount
(1)Disposal
(2)Other
transfers out
III. Impairment
provision
amount in the current
period
Accrual
amount
(1)Disposal
(2)Other
transfers out
IV.Book value
Recoverable amount to be determined according to the net amount of fair value after deducting disposal expenses
□Applicable ? Not applicable
Recoverable amount to be determined according to the present value of estimated future cash flows
□Applicable ? Not applicable
(2) Investment property measured at fair value
□Applicable ? Not applicable
(3) Investment real estate without obtaining property ownership certificate
Unit: RMB
Reason for not completing the property
Item Book value
rights certificate
Housing and buildings 24,107,154.16 See Note VII, 10(3)
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Unit: RMB
Item Closing balance Opening balance
Fixed assets 893,074,353.16 927,820,225.94
Total 893,074,353.16 927,820,225.94
(1) Fixed assets
Unit: RMB
Furniture and
Houses and Machines and Transportation
Item Ships and nets office Total
buildings equipment equipment
equipment
I.Original book
value:
balance 71 11
amount in the 12,612,913.69 43,075.22 111,121.65 12,767,110.56
current period
(1)Purchase 12,612,913.69 43,075.22 111,121.65 12,767,110.56
(2)Transferred
from
construction in
progress
(3)Increase in
business
merger
decrease 33,279.75 17,575,076.47 343,336.21 164,755.91 349,276.85 18,465,725.19
amount
(1)Disposal or
scrapping
Effect of
exchange rate 33,279.75 13,931,122.72 25,929.76 164,755.91 28,615.49 14,183,703.63
changes
balance 93 48
II.Accumulated
depreciation
balance
d amount in 2,788,648.93 32,387,129.09 1,640,575.85 138,530.92 250,922.01 37,205,806.80
current period
(1)Accrual 2,788,648.93 32,387,129.09 1,640,575.85 138,530.92 250,922.01 37,205,806.80
decrease
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
amount
(1)Disposal or
scrapping
Effect of
exchange rate 3,954,567.77 2,946.65 90,777.08 31,624.61 4,079,916.11
changes
balance
III.Impairment
provision
balance
d amount in
current period
(1)Accrual
decrease
amount
(1)Disposal or
scrapping
balance
IV.Book value
book value
book value
(2) Information of temporarily idle fixed assets
Unit: RMB
Original book Accumulated Impairment
Item Book value Remark
value depreciation provision
Machinery and
equipment
Vessels 45,999,481.94 32,890,282.86 13,109,199.08
(3) Fixed assets without obtaining property ownership certificate
Unit: RMB
Reason for not obtaining the property
Item Book value
rights certificate
Houses and buildings 1,139,603.09 See explanation
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Other notes
According to the "Debt Repayment Opinion" signed between our company and Shandong Provincial Aquatic Products Group
Corporation in April 2006, as well as the "Civil Ruling" (2005) LZZ No. 1299 of the People's Court of Lixia District, Jinan City,
Shandong Provincial Aquatic Products Group Corporation offset the debt owed by its office complex building and office supplies
located at No. 43, Heping Road, Lixia District, Jinan City to Shandong Zhonglu Oceanic Fisheries Co., Ltd. The confirmed
original book value of the office complex building is RMB54,223,132.40. As of June 30, 2026, the book value is
RMB25,246,757.25 (of which the self-use portion is included in fixed assets and the leased portion is included in investment real
estate). The land used for this property is an allocated land, and the property ownership certificate has not yet been obtained.
(4) Impairment testing of fixed assets
□Applicable ? Not applicable
Unit: RMB
Item Closing balance Opening balance
Construction in progress 235,979,273.52 205,135,249.27
Total 235,979,273.52 205,135,249.27
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Atlantic
Seining project
Zhonglu
Marine
Innovation 232,880,180.73 232,880,180.73 205,050,797.71 205,050,797.71
Industry Park
project
Seiner overhaul 3,099,092.79 3,099,092.79
other 84,451.56 84,451.56
Total 240,056,932.07 4,077,658.55 235,979,273.52 209,212,907.82 4,077,658.55 205,135,249.27
(2) Changes in important ongoing construction projects for the current period
Unit: RMB
Amount Proporti
Increase Accumu Among
transferr on of
d Other lated them: Current
ed to accumul
amount decrease amount Current interest
Name of Budget fixed ated Project Source
Opening in s in the Closing of interest capitaliz
item amount assets in project progress of funds
balance current current balance interest capitaliz ation
the investm
period period capitaliz ation rate
current ent to
ation amount
period budget
Tuna 51,000 37,539 1,297, 38,837 76.15 65.67 4,863, 655,63 3.45% other
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Tradin ,000.0 ,532.3 730.86 ,263.2 % % 678.84 5.23
g 0 9 5
Center
No.5
Cold 93.79 90.57 2,353,
Storag % % 658.52
e
Total 0,000. 9,095. ,030.0 7,125. ,024.9
(3) Impairment testing of construction in progress
□Applicable ? Not applicable
(1) Intangible assets
Unit: RMB
Non-patent
Item Land use right Patent right Computer software Total
technology
I.Original book
value
balance
amount in current
period
(1) Purchase
(2)Internal R&D
(3)Increa
se in business
merger
decrease amount
(1)Dispo
sal
balance
II. Accumulated
amortization
balance
amount in current 714,486.42 31,412.46 745,898.88
period
(1)Accrual 714,486.42 31,412.46 745,898.88
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
decrease amount
(1)Disposal
balance
III.Impairment
provision
amount in current
period
(1)Accrual
amount
(1)Disposal
IV.Book value
value
value
The proportion of intangible assets generated from the Company's internal R&D activities as a percentage of the balance of
intangible assets as of the end of the current period is 0.00%.
(2) Impairment testing of intangible assets
□Applicable ? Not applicable
Unit: RMB
Increased amount Amortized amount Other decreased
Item Opening balance Closing balance
in current period in current period amount
Decoration for
business premises
Decoration for the
tuna science 368,481.24 245,654.22 122,827.02
museum
Vessel dry-
docking
Total 2,575,291.62 2,525,538.31 617,384.80 4,483,445.13
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(1) Deferred income tax assets not offset
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
difference difference
Bad debt provision 1,134,146.78 229,965.36 1,156,930.27 235,661.23
Deferred income 3,662,110.80 915,527.70 4,011,354.26 1,002,838.57
Total 4,796,257.58 1,145,493.06 5,168,284.53 1,238,499.80
(2) Deferred income tax liabilities not offset
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
difference difference
Pre-tax deductions for
the accelerated
depreciation of fixed
assets
Total 8,403,611.60 2,100,902.90 8,704,373.77 2,176,093.44
(3) Deferred income tax assets or liabilities listed at net amount after offsetting
Unit: RMB
Deferred income tax Closing balance of Deferred income tax Opening balance of
assets and liabilities deferred income tax assets and liabilities deferred income tax
Item
offset at the end of the assets or liabilities after offset at the end of the assets or liabilities after
period offsetting period offsetting
Deferred income tax
assets
Deferred income tax
liabilities
(4) Details of unconfirmed deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 44,187,481.95 65,728,723.52
Deductible losses 12,512,551.57
Total 56,700,033.52 65,728,723.52
(5) Deductible losses for which deferred tax assets are not recognized will become due in the following
years
Unit: RMB
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Year Closing amount Opening amount Remark
Total 12,512,551.57
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepaid land
payment
Advance
payment for
construction in 16,286,457.24 16,286,457.24 21,629,081.65 21,629,081.65
progress and
equipment
Total 18,286,457.24 18,286,457.24 23,629,081.65 23,629,081.65
Unit: RMB
End of period Beginning of period
Item Informatio Informatio
Book Type of Book Type of
Book value n of Book value n of
balance restriction balance restriction
restriction restriction
Guarantee Guarantee
deposits for deposits for
Monetary 7,800,000.0 7,800,000.0 28,789,884. 28,789,884.
notes and notes and
funds 0 0 20 20
letters of letters of
guarantee guarantee
Fixed 473,692,26 425,373,76 Mortgage 473,692,26 432,974,05 Mortgage
assets 7.44 3.77 loans 7.44 3.41 loans
Intangible 52,255,113. 47,552,152. Mortgage 52,255,113. 48,074,703. Mortgage
assets 26 82 loans 26 98 loans
Constructio
n in
progress
Total
(1) Category of short-term loans
Unit: RMB
Item Closing balance Opening balance
Credit loans 16,010,400.00 16,022,933.34
Total 16,010,400.00 16,022,933.34
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Unit: RMB
Type Closing balance Opening balance
Banker’s acceptance 15,000,000.00 56,979,768.40
Total 15,000,000.00 56,979,768.40
(1) Presentation of accounts payable
Unit: RMB
Item Closing balance Opening balance
Within 1 year (included) 65,581,183.67 77,509,149.94
Over 1 year 7,868,145.26 5,034,531.48
Total 73,449,328.93 82,543,681.42
Unit: RMB
Item Closing balance Opening balance
Dividends payable 5,234,835.31 5,234,835.31
Other payables 22,975,338.07 19,337,100.36
Total 28,210,173.38 24,571,935.67
(1) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Dividends from ordinary shares 5,234,835.31 5,234,835.31
Total 5,234,835.31 5,234,835.31
(2) Other payables
Unit: RMB
Item Closing balance Opening balance
Earnest money and deposits 5,432,085.83 5,518,240.83
Staff costs 5,491,785.66 912,274.58
Production safety costs 2,570,414.62 1,708,525.48
Others 9,481,051.96 11,198,059.47
Total 22,975,338.07 19,337,100.36
Unit: RMB
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Reasons for non-settlement or non-
Item Closing balance
repayment
Earnest money 5,000,000.00 Not yet due for settlement
Total 5,000,000.00
(1) Presentation of advance receipts
Unit: RMB
Item Closing balance Opening balance
Advance rent collection 1,319,438.37 1,201,097.79
Total 1,319,438.37 1,201,097.79
Unit: RMB
Item Closing balance Opening balance
Advances from customers 58,602,167.88 8,866,554.08
Total 58,602,167.88 8,866,554.08
(1) Presentation of payroll payable
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
I.Short -term
compensation
II.Post employment
benefits - defined 1,698,733.33 7,296,856.48 6,297,245.78 2,698,344.03
contribution plan
III.Dismissal benefits 184,072.00 184,072.00
IV.Other benefits due
within one year
Total 77,123,782.16 80,909,028.10 111,873,387.65 46,159,422.61
(2) Presentation of short-term salary
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
allowances, and
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
subsidies
expenses
premiums
Including:
Medical insurance 2,632,007.26 2,632,007.26
premiums
Work injury insurance
premium
fund
and employee 1,666,356.88 395,723.83 428,276.78 1,633,803.93
education funds
Total 75,425,048.83 73,420,510.47 105,385,445.87 43,460,113.43
(3) Presentation of defined contribution plans
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
insurance
insurance premium
payment
Social insurance and
subsidies for retirees
Total 1,698,733.33 7,296,856.48 6,297,245.78 2,698,344.03
Unit: RMB
Item Closing balance Opening balance
Value added tax 195,393.14 313,943.05
Enterprise income tax 580,292.11 1,132,290.71
Personal income tax 136,580.26 724,602.15
Urban maintenance and construction tax 6,343.64 17,069.51
Property tax 371,518.59 376,654.33
Land use tax 323,569.87 323,569.87
Education surcharges 3,123.57 12,192.49
Withholding tax 4,238,001.66 5,617,389.27
Other taxes and fees 81,920.58 186,488.03
Total 5,936,743.42 8,704,199.41
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings due within one
year
Total 17,529,833.33 16,679,833.33
Unit: RMB
Item Closing balance Opening balance
Output tax on advances from customers 11,770.97 19,248.74
Total 11,770.97 19,248.74
(1) Category of long-term loans
Unit: RMB
Item Closing balance Opening balance
Mortgage loan 42,437,887.35 41,243,862.50
Guaranteed Loan 93,090,416.67 94,601,062.50
Mortgage and guaranteed loan 357,179,377.09 342,214,324.56
Less: long-term borrowings due within
-17,529,833.33 -16,679,833.33
one year
Total 475,177,847.78 461,379,416.23
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Notes to the classification of long-term loans:
Note 1: The collateral for the mortgage loans is the properties located at Rooms 2501-2506, Building 1, Guoxin Financial Center,
No. 31 Xianxialing Road, Laoshan District, with real estate certificate numbers Lu (2022) Qingdao Laoshan District Real Estate
Rights No. 0051706, No. 0051707, No. 0051708, No. 0051709, No. 0051710, and No. 0051711, respectively, with a book value of
RMB61,048,409.07.
Note 2: The guarantor of the guaranteed loans is Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd.
Note 3: The collateral for the mortgage and guaranteed loans consists of: the purse seine vessels "Tailong 7" and "Tailong 9," with
a book value of RMB338,619,850.72; fishing vessels "Luqing Yuanyu 367" and "Luqing Yuanyu 368," with a book value of
RMB25,705,503.98; the Zhonglu Marine Innovation Industry Park project under construction, with a book value of
RMB220,235,411.15; and the land use right of Zhonglu Oceanic (Qingdao) Industrial Investment and Development Co., Ltd., with
real estate certificate number Lu (2022) Jiaozhou Real Estate Rights No. 0000267, with a book value of RMB47,552,152.82. The
guarantors are Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd. and Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.
(1) Long term employee payroll payable
Unit: RMB
Item Closing balance Opening balance
II. Dismissal benefits 428,721.93 428,721.93
III.Other long-term benefits 56,342.81 63,931.96
Total 485,064.74 492,653.89
Unit: RMB
Increase in current Decrease in
Item Opening balance Closing balance Cause
period current period
Government
Government
subsidies
assets
Total 53,112,953.91 1,316,661.94 51,796,291.97
Unit: RMB
Increase/decrease for this change (+, -)
Opening Conversion Closing
balance Issue of new Stock of provident balance
Others Subtotal
shares dividend fund into
shares
Total number 266,071,320. 266,071,320.
of shares 00 00
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Capital premium (share
capital premium)
Other capital reserve 106,526,779.23 106,526,779.23
Total 295,620,272.02 295,620,272.02
Unit: RMB
Amount incurred in current period
Less:
Less:
Previously
previously
included in
included in
Amount other
other
incurred comprehen Attributabl
Opening comprehen Attributabl Closing
Item before sive Less: e to
balance sive e to the balance
income tax income, Income tax minority
income and parent
in the and expense shareholder
transferred company
current transferred s after tax
to profit or after tax
period to retained
loss in the
earnings in
current
the current
period
period
II.Other
comprehen
sive
- - - - -
income to
be
reclassified
into profit
or loss
Translation
differences
- - - - -
in foreign
currency
financial
statements
Total of
other - - - - -
comprehen 6,329,745.3 8,884,502.7 7,001,489.6 1,883,013.1 13,331,235.
sive 6 6 6 0 02
income
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Safe production
expense
Total 19,038.84 1,628,426.94 1,511,464.58 136,001.20
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Statutory surplus
reserve
Total 21,908,064.19 21,908,064.19
Unit: RMB
Item Current period Previous period
Undistributed profits at the end of the
previous period before adjustment
Undistributed profits at the beginning of
the adjustment period
Plus: Net profit attributable to the owners
of the parent company in the current -36,574,394.03 -13,337,046.26
period
Undistributed profit at the end of the
period
Unit: RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Main business 405,859,371.95 402,144,628.18 672,380,621.32 655,996,952.87
Other businesses 4,722,333.77 1,103,420.64 4,999,456.17 1,103,689.78
Total 410,581,705.72 403,248,048.82 677,380,077.49 657,100,642.65
Disaggregated information of operating income and operating costs:
Unit: RMB
Refrigerat
Product OEM Cold Other Property
Contract classification
Segment ed
Segment 2 sales processing storage fee business lease and Total
revenue revenue revenue revenue others
revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Cost
Cost
Cost
Cost
Cost
Cost
Cost
Cost
Cost
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Business type
By timing
of transfer
of goods
Among
them:
at a point in
Recognized
,44 ,22 79, ,06 ,55
time
.74 .60 .39
over a period
Recognized
,34 ,71 954 ,50 ,31
of time
.24 .45 8 .80 .13
,44 ,22 669 826 94, ,58 ,24
Total
.74 .60 .24 .45 .97 .80 .13
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Urban maintenance and construction tax 43,117.99 49,511.03
Education surcharges 18,466.92 20,674.26
Property tax 938,396.85 976,826.92
Land use tax 253,794.94 253,794.94
Vehicle and vessel use tax 12,295.64 12,635.48
Stamp duty 189,340.30 434,581.32
Local education surcharge 12,311.29 14,660.57
Total 1,467,723.93 1,762,684.52
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Employee compensation 18,744,889.49 17,518,864.13
Accumulated depreciation and
amortization
Travel expenses 805,294.19 657,996.35
Business entertainment expenses 218,344.68 256,023.57
Vehicle cost 385,616.37 330,022.07
Intermediary service fee 753,796.72 908,152.87
Office expenses 1,524,366.08 1,595,357.85
Property water and electricity 754,079.50 738,833.95
Others 2,104,074.01 2,887,447.28
Total 28,370,121.32 28,243,483.54
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Employee compensation 744,998.50 741,187.31
Business promotion expenses 615,351.45 818,289.04
Travel expenses 84,754.11 77,234.13
Depreciation expenses 21,343.05 45,820.14
Communication fee 2,483.72 3,722.10
Others 424,045.53 285,054.54
Total 1,892,976.36 1,971,307.26
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Employee compensation 485,457.96 580,102.50
Materials 557,227.44 622,962.47
Depreciation costs 301,750.14 642,156.24
Others 21,917.48 11,175.20
Total 1,366,353.02 1,856,396.41
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Interest expenses 4,542,753.58 5,583,036.73
Interest income -549,308.27 -655,252.31
Exchange gains and losses 11,260,646.40 -1,978,217.74
Handling fee expenditure 1,001,028.99 945,170.60
Total 16,255,120.70 3,894,737.28
Unit: RMB
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Sources of other income generation Amount incurred in the current period Amount incurred in previous period
Financial subsidy for shipbuilding 885,197.26 935,387.24
Financial subsidies for special
construction funds in the blue economic 349,243.44 349,243.44
zone
Subsidy for return transportation 548,081.85
Others 208,543.55 196,101.79
Total 1,991,066.10 1,480,732.47
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Long-term equity investment income
-201,905.00 -231,502.46
accounted using the equity method
Discount on notes -89,141.67
Total -291,046.67 -231,502.46
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Bad debt loss on accounts receivable 1,585,506.41 -296,982.91
Bad debt loss on other receivables 2,692,855.30 175,982.22
Total 4,278,361.71 -121,000.69
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
I. Inventory falling price loss and
contract performance cost impairment -2,039,274.87 -3,604,352.83
loss
Total -2,039,274.87 -3,604,352.83
Unit: RMB
Sources of gain on disposal of assets Amount incurred in the current period Amount incurred in previous period
Gain or loss on disposal of fixed assets -12,608.53
Unit: RMB
Amount included in current
Amount incurred in the Amount incurred in previous
Item non-recurring gains and
current period period
losses
Others 220.00
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Total 220.00
Unit: RMB
Amount included in current
Amount incurred in the Amount incurred in previous
Item non-recurring gains and
current period period
losses
Loss from the destruction and
scrapping of non-current 155,930.64 155,930.64
assets
Others 1,597.73 18,503.26 1,597.73
Total 157,528.37 18,503.26 157,528.37
(1) Income tax expense statement
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Current income tax expense 948,289.14 1,068,725.45
Deferred income tax expense 17,816.20 -2,967.61
Total 966,105.34 1,065,757.84
(2) Accounting profit and income tax expense adjustment process
Unit: RMB
Item Amount incurred in current period
Total profit -38,237,060.53
Income tax expenses calculated based on statutory/applicable
-9,559,265.12
tax rates
Effect of different tax rates applied to subsidiaries 4,061,654.94
The impact of adjusting income tax of previous periods 18,869.74
The impact of non-taxable income 3,109,161.48
The impact of deductible temporary differences or deductible
losses on unrecognized deferred income tax assets in the 3,335,684.30
current period
Income tax expenses 966,105.34
For details, refer to Note VII. 32. Other Comprehensive Income.
(1) Cash in connection with operating activities
Other cash received in connection with operating activities
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Financial expenses - interest income 549,302.07 654,791.38
Government subsidies and other non-
operating income
Current accounts and others 990,314.22 3,976,955.26
Total 21,206,686.97 12,888,250.44
Other cash paid in connection with operating activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Cash paid sales expenses 1,542,965.16 1,292,425.93
Cash paid management fees 8,587,191.84 8,919,550.63
Current accounts and others 2,851,087.31 4,639,263.97
Total 12,981,244.31 14,851,240.53
(2) Cash in connection with financing activities
Other cash received in connection with financing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Banker’s acceptance discounted 7,410,858.33
Total 7,410,858.33
Other cash paid in connection with financing activities
? Applicable □Not applicable
Unit: RMB
Increase Decerase
Opening
Item Non-cash Non-cash Closing balance
balance Cash change Cash change
change change
Short-term
borrowings
Long-term
borrowings
Non-current
liabilities due 16,679,833.33 9,139,916.67 8,289,916.67 17,529,833.33
within one year
Total 494,082,182.90 23,000,000.00 9,340,448.96 8,564,634.08 9,139,916.67 508,718,081.11
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information Amount in current period Amount in previous period
from operating activities:
Net profit -39,203,165.87 -21,021,947.31
Plus: Asset impairment provision -21,503,676.83 -803,187.46
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Depreciation of fixed assets,
depletion of oil and gas assets, and
depreciation of productive biological
assets
Depreciation of use rights assets 6,260.64
Amortization of intangible assets 745,898.88 746,504.22
Amortization of long-term
deferred expenses
Loss on disposal of fixed assets,
intangible assets, and other long-term 12,608.53
assets (income, using"-")
Loss on scrapping of fixed assets
(income, using "-")
Loss from changes in fair value
(income , using "-")
Financial expenses (income , using "-") 4,542,753.58 5,583,036.73
Investment losses (income , using
"-")
Decrease in deferred income tax
assets (increase, using "-")
Increase in deferred income tax
-75,190.54 -75,190.54
liabilities (decrease , using "-")
Decrease in inventory (increase ,
-59,192,663.20 77,723,544.03
using "-")
Decrease in operating receivables
(increase , using "-")
Increase in operating payables
-14,233,012.53 -26,948,991.80
(decrease , using "-")
Others
Net cash flow generated from
-31,864,804.21 82,605,264.02
operating activities
activities that do not involve cash
receipts and payments:
Debt converted to capital
Convertible corporate bonds maturing
within one year
Fixed assets acquired through
financing lease
equivalents:
Closing balance of cash 225,552,220.34 287,587,822.81
Less: Opening balance of cash 284,306,289.50 249,437,263.40
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash -58,754,069.16 38,150,559.41
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
equivalents
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 225,552,220.34 284,306,289.50
Including: cash in hand 550,558.13 615,541.90
Bank deposits available for
payment at any time
III. Closing balance of cash and cash
equivalents
(3) Monetary funds that are not cash and cash equivalents
Unit: RMB
Amount incurred in current Amount incurred in previous Reasons why they are not
Item
period period cash and cash equivalents
Guarantee deposits for notes
Other monetary funds 7,800,000.00 5,218,266.50
and letters of guarantee
Total 7,800,000.00 5,218,266.50
(1) Foreign currency monetary items
Unit: RMB
Closing foreign currency Closing converted RMB
Item Conversion exchange rate
balance balance
Monetary funds 100,850,091.52
Including: US dollar 5,081,288.36 6.8109 34,608,146.88
Euro 2,781,419.89 7.7671 21,603,566.44
HKD
SAR 11,188,521.35 0.6037 6,754,510.34
JPY 901,031,462.96 0.0420 37,883,867.86
Accounts Receivable 7,529,568.87
Including: US dollar 1,025,944.96 6.8109 6,987,608.53
Euro
HKD
SAR 897,731.22 0.6037 541,960.34
Advance Payment 19,728,169.20
Including: US dollar 2,658,136.26 6.8109 18,104,300.28
Euro 77,631.06 7.7671 602,968.20
XOF 87,256,471.79 0.0117 1,020,900.72
Long-term Loan
Including: US dollar
Euro
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
HKD
Other Receivables 67,462,232.75
Including: US dollar 9,875,265.28 6.8109 67,259,444.30
SAR 333,892.74 0.6037 201,571.05
XOF 104,051.28 0.0117 1,217.40
Accounts Receivable 15,829,070.31
Including: US dollar 2,190,779.76 6.8109 14,921,181.85
Euro 116,886.95 7.7671 907,872.65
SAR 26.19 0.6037 15.81
Contract Liability 19,352,669.92
Including: US dollar 135,307.68 6.8109 921,567.08
SAR 2,679,854.58 0.6037 1,617,828.21
XOF 1,008,068,618.80 0.0117 11,794,402.84
JPY 119,369,051.97 0.0420 5,018,871.79
Other Payables 921,567.08
Including: US dollar 135,307.68 6.8109 921,567.08
(2) The nature and financial impact of non-convertibility of currencies, the spot exchange rates adopted
and their estimation process, as well as the risks faced by the enterprise due to the non-convertibility of
currencies
□ Applicable ?Not applicable
(3) Explanation of overseas operating entities, including for important overseas operating entities, the
main overseas operating location, recording currency, and selection basis should be disclosed. If there is a
change in recording currency, the reasons should also be disclosed.
? Applicable □Not applicable
Overseas main Recording Selection basis
Important overseas operating entities
business location currency
HABITAT INTERNATIONAL CORPORATION Panama USD The economic
environment in which the
business operates
LAIF FISHERIES COMPANY LIMITED Ghana USD The economic
environment in which the
business operates
YAW ADDO FISHERIES COMPANY LIMITED Ghana USD The economic
environment in which the
business operates
ZHONG GHA FOODS COMPANY LIMITED Ghana USD The economic
environment in which the
business operates
AFRICA STAR FISHERIES LIMITED Ghana USD The economic
environment in which the
business operates
(4) Circumstances where there is a lack of convertibility between the functional currency of a foreign
operation and the presentation currency of the enterprise
□ Applicable ?Not applicable
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(1) The Company as a lessee
□ Applicable ?Not applicable
(2) The Company as a lessor
Operating leases as a lessor
? Applicable □Not applicable
Unit: RMB
Including: variable lease payments-
Item Lease income related income not included in lease
receipts
Property lease income 1,792,271.80
Total 1,792,271.80
Financing leases as a lessor
□Applicable ? Not applicable
Annual undiscounted lease receipts for the next five years
□Applicable ? Not applicable
Reconciliation of undiscounted lease receipts and net investment in leases
(3) Recognition of sales profit or loss from financing leases as a producer or distributor
□Applicable ? Not applicable
VIII. R&D Expenditures
Unit: RMB
Item Amount incurred in the current period Amount incurred in previous period
Payroll 485,457.96 580,102.50
Materials 557,227.44 622,962.47
Depreciation costs 301,750.14 642,156.24
Others 21,917.48 11,175.20
Total 1,366,353.02 1,856,396.41
Including: expensed R&D expenditures 1,366,353.02 1,856,396.41
IX. Equity in other entities
(1) Composition of enterprise groups
Unit: RMB
Main Shareholding proportion
Name of Registered Place of Business Method of
operating
subsidiary capital registration nature Direct Direct acquisition
location
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Shandong
Zhonglu Establishmen
RMB22,505, Qingdao, Qingdao, Refrigerated
Aquatic 100.00% t by
Shipping investment
Co., Ltd.
Shandong
Zhonglu
Oceanic
(Yantai) Establishmen
RMB104,322 Yantai, Yantai, Food
Food Co., 46.69% 25.77% t by
,300.00 Shandong Shandong processing
Ltd. (referred investment
to as
“Zhonglu
Food”)
Shandong
Zhonglu
Haiyan
Oceanic Establishmen
RMB221,617 Qingdao, Qingdao, Long range
Fisheries 59.05% t by
,300.00 Shandong Shandong fishing
Co., Ltd. investment
(referred to
as “Zhonglu
Haiyanzi”)
Zhonglu
Oceanic(Qin
gdao)
Establishmen
Industrial RMB192,000 Qingdao, Qingdao, Refrigerated
Investment ,000.00 Shandong Shandong transport
investment
and
Development
Co., Ltd.
HABITAT
INTERNATI Establishmen
USD1,507,4 Refrigerated
ONAL Panama Panama 100.00% t by
CORPORAT investment
ION
LAIF Zhonglu
Establishmen
FISHERIES USD400,000 Long range Haiyan holds
Ghana Ghana t by
COMPANY .00 fishing 100% of the
investment
LIMITED shares.
AFRICA Zhonglu
Establishmen
STAR USD400,000 Long range Haiyan holds
Ghana Ghana t by
FISHERIES .00 fishing 100% of the
investment
LIMITED shares.
ZHONG
Zhonglu
GHA Establishmen
USD500,000 Long range Haiyan holds
FOODS Ghana Ghana t by
.00 fishing 100% of the
COMPANY investment
shares.
LIMITED
Shandong
Zhonglu
Zhonglu Establishmen
RMB15,000, Yantai, Yantai, Warehousing Food holds
Oceanic t by
Refrigeration investment
shares.
Co., Ltd.
YAW
Long range Operating
ADDO Ghana Ghana
fishing leases
FISHERIES
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
COMPANY
LIMITED
(2) Important non wholly-owned subsidiaries
Unit: RMB
Profit and loss Dividends declared for
Shareholding Closing balance of
attributable to minority distribution to minority
Name of subsidiary proportion of minority minority shareholders'
shareholders in the shareholders in the
shareholder equity
current period current period
Shandong Zhonglu
Haiyan Oceanic 40.95% -5,694,865.94 151,696,420.27
Fisheries Co., Ltd.
Shandong Zhonglu
Oceanic (Yantai) Food 27.54% 3,066,094.10 107,460,135.21
Co., Ltd.
(3) Main financial information of important non-wholly-owned subsidiaries
Unit: RMB
Closing balance Opening balance
Name
Non- Non-
of Non- Current Total Non- Current Total
Current Total of current Current Total current
subsidi current liabilitie liabilitie current liabilitie liabilitie
assets assets liabilitie assets assets liabilitie
ary assets s s assets s s
s s
Shandon
g
Zhonglu
Haiyan 5,891, 6,022,
Oceanic 228.59 562.33
Fisherie
s Co.,
Ltd.
Shandon
g
Zhonglu
Oceanic 6,757, 7,264,
(Yantai) 426.45 081.67
Food
Co.,
Ltd.
Unit: RMB
Amount incurred in current period Amount incurred in previous period
Name of Total Cash flow Total Cash flow
subsidiary Operating comprehen of Operating comprehen of
Net profit Net profit
income sive operating income sive operating
income activities income activities
Shandong
Zhonglu
- - - - - -
Haiyan 101,326,36 168,675,16
Oceanic 2.89 3.34
Fisheries
Co., Ltd.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Shandong
Zhonglu
- -
Oceanic 237,557,46 11,133,239. 11,133,239. 343,527,20 5,276,731.4 5,276,731.4
(Yantai) 9.65 30 30 5.90 7 7
Food Co.,
Ltd.
(1) Summary financial information of insignificant joint ventures and joint operations
Unit: RMB
Closing balance/amount in this period Opening balance/amount in prior period
Joint ventures:
Total amount of the following items
calculated based on the shareholding
proportion
Joint operations:
Total book value of investment 239,987.08 647,119.58
Total amount of the following items
calculated based on the shareholding
proportion
-Net profits -201,905.00 -231,502.46
-Total comprehensive income -201,905.00 -231,502.46
Other notes:
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd., a subsidiary of the Company, holds 15.00% of the shares of Jinan Qinzhen
Food Technology Co., Ltd. and appoints a director for it, having a significant impact on its production and operations.
X. Government Grants
? Applicable □Not applicable
Closing balance of accounts receivable: RMB 88,287,931.00.
Reasons why the estimated amount of government grants were not received at the estimated point in time
Applicable ? Not applicable
As of June 30, 2026, the total balance of international performance capacity enhancement subsidy funds receivable by the
Company and its controlling subsidiaries amounted to RMB84,612,900.00. The competent authority for this government grant, the
Agriculture and Rural Affairs Bureau of Laoshan District, Qingdao, stated that the funds will be disbursed in an orderly manner
based on future fiscal conditions.
? Applicable □Not applicable
Unit: RMB
Accounting Opening Amount of Amount Amount Other Closing Related to
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
item balance new grants in included in transferred to changes in balance assets/incom
this period non- other income this period e
operating in this period
income in
this period
Government
Deferred 53,112,953.9 51,796,291.9 subsidies
income 1 7 related to
assets
? Applicable □Not applicable
Unit: RMB
Accounting item Amount incurred in current period Amount incurred in previous period
Other income 1,966,431.18 1,459,767.92
XI. Risks Related to Financial Instruments
The Company’s key financial instruments include accounts receivable, other receivables, accounts payable, and other
payables. For the details of each financial instrument, please refer to the relevant items in Note VII. The purpose of the Company’s
risk management is to strike an appropriate balance between risk and income, minimize the negative impact of risks on its business
performance, and maximize the interests of shareholders and other equity investors. Based on the purpose of risk management, the
basic strategy for the Company’s risk management is to identify and analyze all the risks faced by the Company, establish an
appropriate bottom line for risk tolerance, conduct risk management, timely and reliably monitor all risks, and control risks within
a limited extent.
(1) Credit risk
If the customer or counterparty involved in a financial instrument is unable to perform their obligations under the contract,
resulting in financial losses to the Company, it is credit risk. Credit risk mainly comes from accounts receivable from customers.
The book values of accounts receivable, notes receivable, and other receivables are the biggest credit risk to the Company’s
financial assets.
(2) Market risk
The market risk of a financial instrument is the risk of changes in the fair value or future cash flows of the financial
instrument caused by market price changes. It includes exchange rate risk, interest rate risk, and other price risk.
The Company uses the sensitivity analysis technique to analyze the potential effect of reasonable, possible changes in the
relevant variables of market risk on profit or loss or shareholders’ interests. It is rare for any risk variable to change in isolation,
and the amount of the final effect of the correlation between variables on changes in a risk variable will have a significant effect.
Hence, the following content is based on the assumption that changes in each variable happen in independent circumstances.
① Exchange rate risk
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Exchange rate risk is the risk of changes in the fair value or future cash flows of a financial instrument caused by exchange
rate changes. The exchange rate risk facing the Company mainly comes from financial assets priced in US dollars. The amount of
foreign-currency financial assets in RMB is presented in “VII. 52 Foreign-currency monetary items.”
② Interest rate risk
Interest rate risk is the risk of changes in the fair value or future cash flows of a financial instrument caused by changes in
the market interest rate. The interest rate risk facing the Company mainly comes from long-term borrowings from banks. As the
Company’s borrowings use the floating interest rate, there is a risk of changes in the RMB benchmark interest rate.
(3) Liquidity risk
Liquidity risk is the risk of a fund shortage encountered by the Company when performing obligations related to financial
liabilities. In the context of normal financial conditions and financial strains, the Company makes sure to have sufficient liquidity
to repay debts that are due, consults financial institutions for financing, and maintains a certain level of standby line of credit to
reduce liquidity risk.
(1) Classification by transfer mode
?Applicable □ Not applicable
Unit: RMB
Nature of transferred Amount of transferred Basis for determining
Transfer method Derecognition status
financial assets financial assets derecognition
Banker's acceptances
Notes discounted Banker's acceptance 15,000,000.00 Fully derecognized issued by banks with
high credit ratings
Total 15,000,000.00
(2) Financial assets derecognized due to transfer
?Applicable □ Not applicable
Unit: RMB
Method of financial asset Amount of financial assets Gains or losses related to
Item
transfer derecognized derecognition
Notes receivable Notes discounted 15,000,000.00 -89,141.67
Total 15,000,000.00 -89,141.67
(3) Continuing involvement in transferred financial assets
□Applicable ? Not applicable
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
XII. Related Parties and Related Transactions
The shareholding Proportion of
Name of parent Place of ratio of the parent voting rights of the
Business nature Registered capital
company registration company in the parent company to
company the company
Investment and
Management,
Asset Management
Shandong State -
and Capital
owned Assets
Jinan, Shandong Operations, RMB4.5 billion 47.25% 47.25%
Investment
Custody
Holdings Co., Ltd.
Operations,
Investment
Consulting
Disclosure of the parent of the Company
The ultimate controlling party of the enterprise is the State owned Assets Supervision and Administration Commission of the
People's Government of Shandong Province.
Details regarding the subsidiaries of the Company are provided in Note IX. 1. Interests in subsidiaries.
Information on significant joint ventures or associates of the Company can be found in Note IX. 2. Interests in joint ventures and
associates.
Information of other joint ventures or joint operations that had related-party transactions with the Company in this period or in
prior period that gave rise to balance:
Name of joint venture or joint operation Relationship with the Company
Jinan Qinzhen Food Technology Co., Ltd. Joint operation
Name of other related parties Relationship between other related parties and our company
Dezhou Bank Co., Ltd Controlled by the same parent company
Zhongtai Xincheng Asset Management Co., Ltd Controlled by the same parent company
(1) Related party transactions for purchasing and selling goods, providing and receiving labor services
Information of the sale of goods/provision of labor services
Unit: RMB
Content of related party Amount incurred in current Amount incurred in previous
Related parties
transaction period period
Jinan Qinzhen Food Tuna products 132,285.50 121,394.00
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Technology Co., Ltd.
Shandong State-owned Assets
Trusteeship fees 849,056.58 849,056.60
Investment Holding Co., Ltd.
(2) Related entrusted management/contracting and entrusted management/outsourcing situation
Table of entrusted management/contracting situation of our company:
Unit: RMB
Confirmed
Name of the Pricing basis
Name of Type of Starting date of Ending date of custody
entrusting for custody
trustee/contract entrusted/contra commission/co commission/co income/contract
party/outsourci income/contract
or cted assets ntracting ntracting ing income in
ng party ing income
this period
Shandong
Shandong
State-owned
Zhonglu
Assets Entrusted
Oceanic April 14, 2022 By contract 849,056.58
Investment management
Fisheries Co.,
Holdings Co.,
Ltd.
Ltd.
(3) Compensation for key management personnel
Unit: RMB
Item Amount incurred in current period Amount incurred in previous period
Compensation for key management
personnel
(4) Other related party transactions
Item Related party Amount incurred in Amount incurred in
current period previous period
Income from deposit interest Dezhou Bank Co., Ltd. 69.51 198.87
(1) Receivable
Unit: RMB
Closing balance Opening balance
Name of item Related party
Book balance Bad debt provision Book balance Bad debt provision
Jinan Qinzhen
Accounts
Food Technology 119,067.40 5,953.37 138,262.40 6,913.12
receivable
Co., Ltd.
Shandong State-
owned Assets
Other receivables 900,000.00 45,000.00 1,800,000.00 90,000.00
Investment
Holdings Co., Ltd.
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(2) Payables
Unit: RMB
Item Affiliate Closing book balance Opening book balance
Zhongtai Xincheng Asset
Dividends payable 5,234,835.31 5,234,835.31
Management Co., Ltd
XIII. Commitments and contingencies
Significant commitments existing on the balance sheet date
As of the balance sheet date, there was no commitment to disclose.
(1) Significant contingencies on the balance sheet date
As of the balance sheet date, there was no contingency to disclose.
(2) The company should also explain if it has not any important contingencies that need to be disclosed
There are no significant contingencies that need to be disclosed by the company.
XIV. Events after the balance sheet date
As of the balance sheet date, there was no post-balance sheet event to disclose.
XV. Other Important Matters
The Company has established the occupational pension system in accordance with relevant laws, regulations, and policies. The
Company pays for supplementary pension insurance for employees (occupational pension) on the basis of joining the basic
pension insurance. The Company sets the business performance coefficient based on its actual operations and calculates the total
amount to be paid based on that coefficient. The amount to be paid by the Company in occupational pension has been disclosed in
“payroll payable - defined contribution plans.” The amount to be paid by employees is deducted from payroll by the Company.
The amount of occupational pension accrued by the Company in the current period is RMB1,766,500.00. For relevant disclosure,
refer to “Note VII. 24. Payroll payable.”
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(1) Basis for determining reporting segments and accounting policies
The Company’s main businesses include long range fishing, refrigerated transportation, processing, and trade of aquatic products,
and other businesses. The Company discloses segment reporting based on the different natures of its main businesses.
(2) Financial information of the reporting segment
Unit: RMB
Seafood
Long range Marine refrigeration Inter-segment
Item Others Total
fishing transport processing offset
trade
I. Income from
main business
II.Main
business cost
III.Credit
impairment loss
IV.Asset
-2,039,274.87 -2,039,274.87
impairment loss
V.Depreciation
costs and
amortization
costs
VI.Total profit -35,378,058.07 -2,088,092.14 12,017,356.29 -12,788,266.61 -38,237,060.53
VII.Income tax
expenses
VIII.Net profit -35,378,058.07 -2,169,874.66 11,133,239.30 -12,788,472.44 -39,203,165.87
IX.Total assets 277,870,435.71 502,247,294.51
X.Total -
liabilities 457,371,866.86
XVI. Notes to Main Items in the Parent Company's Financial Statements
(1) Disclosure by aging
Unit: RMB
Aging Closing book balance Opening book balance
Within one year (included) 2,355,971.27 7,136,938.33
More than 3 years 5,689,018.01 5,689,018.01
Total 8,044,989.28 12,825,956.34
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(2) Disclosure by accrual method of bad debt provision
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrual Book Accrual Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
Among
them:
Account
s
receivab
le of bad
debt
provisio 100.00% 70.72% 100.00% 47.20%
n
withdra
wn by
combina
tion
Among
them:
non-
affiliate 100.00% 70.72% 100.00% 47.20%
group
Total 100.00% 70.72% 100.00% 47.20%
Accrual of bad debt provision by group:
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrual proportion
Non-affiliate group 8,044,989.28 5,689,018.01 70.72%
Total 8,044,989.28 5,689,018.01
If the bad debt provision of accounts receivable is made based on the general model of expected credit losses:
□Applicable ? Not applicable
(3) Bad debt provisions accrued, recovered or reversed in the current period
Accrual of bad debt provision in current period:
Unit: RMB
Change amount of current period
Opening
Category Recovery or Closing balance
balance Accrual Write-off Others
reversal
Bad debt
provision for
accounts
receivable
Total 6,053,364.93 -364,346.92 5,689,018.01
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
(4) Top five accounts receivable and contract assets in terms of closing balance summarized by debtor
Unit: RMB
Closing balance of
Proportion in the
bad debt provision
Closing balance of total closing
Closing balance of for accounts
Closing balance of accounts balance of
Name of entity accounts receivable and
contract assets receivable and accounts
receivable impairment
contract assets receivable and
provision for
contract assets
contract assets
A 3,600,962.12 3,600,962.12 44.76% 3,600,962.12
B 430,625.10 430,625.10 5.35% 430,625.10
C 293,209.20 293,209.20 3.64% 293,209.20
D 158,154.98 158,154.98 1.97% 158,154.98
E 156,875.50 156,875.50 1.95% 156,875.50
Total 4,639,826.90 4,639,826.90 57.67% 4,639,826.90
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 26,199,905.76
Other receivables 165,825,490.33 186,581,184.21
Total 165,825,490.33 212,781,089.97
(1) Dividends receivable
Unit: RMB
Item (or invested entity) Closing balance Opening balance
HABITAT INTERNATIONAL
CORPORATION
Total 26,199,905.76
(2) Other receivables
Unit: RMB
Nature of payment Closing book balance Opening book balance
Internal transactions within the company 145,571,303.01 157,404,302.58
Reserve funds and others 35,620,850.49 46,230,800.83
Total 181,192,153.50 203,635,103.41
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Unit: RMB
Aging Closing book balance Opening book balance
Within 1 year (included) 72,457,422.11 133,750,143.06
More than 3 years 27,083,142.25 32,493,625.82
Total 181,192,153.50 203,635,103.41
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Proporti Book Proporti Book
Proporti value Proporti value
Amount Amount on of Amount Amount on of
on on
accrual accrual
Allowan
ce for
bad
debts 6,936,76 6,936,76 6,936,76 6,936,76
provided 7.11 7.11 7.11 7.11
on an
individu
al basis
Among
them:
Bad debt
provisio
n 96.17% 4.84% 96.59% 5.14%
accrued
by group
Amon
g them:
Non-
affiliate 35,620,8 8,429,89 27,190,9 46,230,8 10,117,1 36,113,6
combina 50.49 6.06 54.43 00.83 52.09 48.74
tion
Portfolio
of
consolid 138,634, 138,634, 150,467, 150,467,
ated 535.90 535.90 535.47 535.47
related
parties
Total 100.00% 8.48% 100.00% 8.37%
Name of category for which allowance for bad debts is provided on an individual basis:
Unit: RMB
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Opening balance Closing balance
Name Bad debt Bad debt Proportion of Reason for
Book balance Book balance
provision provision accrual provision
YAW’s ship
purchase
payment; the
vessel has now
YAW ADDO been
FISHERIES dismantled, and
COMPANY YAW is unable
LIMITED to pay this
amount, hence
the bad debt
provision was
made.
Total 6,936,767.11 6,936,767.11 6,936,767.11 6,936,767.11
Accrual of bad debt provision by group:
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Proportion of accrual
Non-affiliate aging group 35,620,850.49 8,429,896.06 23.67%
Total 35,620,850.49 8,429,896.06
Accrual of bad debt provision by general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit loss for Expected credit loss for
Bad debt provision Expected credit loss in the entire duration (no the entire duration Total
the next 12 months credit impairment (credit impairment
occurred) occurred)
Balance as of January
Balance as of January
period
Accrual of current
-1,656,274.49 -30,981.54 -1,687,256.03
period
Balance as of June 30,
Changes in book balance with significant changes in loss reserves during the current period
□Applicable ? Not applicable
Accrual of bad debt provision in this period:
Unit: RMB
Change amount in this period
Opening
Category Recovered or Closing balance
balance Accrued Write-off Others
reversed
Bad debts of 17,053,919.20 -1,687,256.03 15,366,663.17
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
other
receivables
Total 17,053,919.20 -1,687,256.03 15,366,663.17
Unit: RMB
Proportion to total
Closing balance of
Name of entity Nature of payment Closing balance Aging closing balance of
bad debt provision
other receivables
LAIF FISHERIES
LIMITED Current accounts 57,037,465.24 Less than 1 year 31.48%
COMPANY
Shandong Zhonglu
Haiyan Oceanic Current accounts 40,185,820.90 1-3 years 22.18%
Fisheries Co., Ltd.
Laoshan District
Agriculture and 6 months to 2
Government grant 30,758,735.00 16.98% 4,838,290.50
Rural Affairs years
Bureau
YAW ADDO Less than 1 year,
FISHERIES Current accounts 20,602,626.27 1-3 years and 11.37%
CO.,LTD above
Shandong Zhonglu
Aquatic Shipping Current accounts 8,279,334.72 More than 3 years 4.57%
Co., Ltd.
Total 156,863,982.13 86.58% 4,838,290.50
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment on
subsidiaries
Total 328,189,455.23 328,189,455.23 328,189,455.23 328,189,455.23
(1) Investment on subsidiaries
Unit: RMB
Opening Opening Change in increase/decrease in this period Closing Closing
Invested balance balance of Accrual of balance balance of
entity (book impairment Additional Reducing (book impairment
impairment Others
value ) provision investment investment value) provision
provision
HABITAT
INTERNA
TIONAL
CORPORA
TION
Shandong 22,869,513. 22,869,513.
Zhonglu 38 38
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Aquatic
Shipping
Co., Ltd
Shandong
Zhonglu
Oceanic 55,448,185. 55,448,185.
(Yantai) 24 24
Food Co.,
Ltd
Shandong
Zhonglu
Haiyan 141,395,61 141,395,61
Oceanic 1.01 1.01
Fisheries
Co., Ltd
Zhonglu
Oceanic(Qi
ngdao)
Industrial 96,000,000. 96,000,000.
Investment 00 00
and
Developme
nt Co., Ltd
Total
Unit: RMB
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 59,533,900.97 73,913,455.10 147,358,263.13 148,555,603.53
Other businesses 3,324,889.79 1,692,607.54 4,003,423.65 1,714,319.34
Total 62,858,790.76 75,606,062.64 151,361,686.78 150,269,922.87
Disaggregated information of operating income and operating costs:
Unit: RMB
Product sales Other business Property lease
Segment 1 Segment 2 Total
classification
revenue revenue and others
Contract
Reven Reven Reven Reven Reven Reven
Cost Cost Cost Cost Cost Cost
ue ue ue ue ue ue
Business type
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
By timing of transfer of goods
Among
them:
Recognized at a point in
time
,900.9 ,455.1 ,900.9 ,455.1
Recognized over a period
of time
Total
,900.9 ,455.1 ,790.7 ,062.6
XVII. Additional information
? Applicable □Not applicable
Unit: RMB
Item Amount Remarks
Gains or losses on the disposal of non-
-155,930.64
current assets
Government grants recognized in profit
or loss (excluding government grants that
are closely related to the Company’s
business, meet the standards of national
policies, are received in accordance with
established standards, and have a
continuous impact on the Company’s
profit or loss)
Income from custody fees obtained from 849,056.58
Full text of the Semiannual report of 2026, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
entrusted operations
Other non-operating income and
-1,597.73
expenses other than the above
Less: Income tax impact amount 116,029.67
Amount of minority interest effect
(after tax)
Total 2,451,668.08 --
The specific situation of other profit and loss items that meet the definition of non-recurring profit and loss:
□Applicable ? Not applicable
The company does not have any specific cases of profit or loss items that meet the definition of non-recurring profit or loss.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure of Companies Issuing Securities to the Public as recurring profit and loss items
□Applicable ? Not applicable
Earnings per share
Profit during the reporting
ROE Basic earnings per share Diluted earnings per share
period
(RMB /Share) (RMB /Share)
Net profit attributable to
common shareholders of the -3.41% -0.1375 -0.1375
company
Net profit attributable to
common shareholders of the
-3.64% -0.1467 -0.1467
company after deducting non-
recurring profits and losses
accounting standards and Chinese accounting standards
□Applicable ? Not applicable
standards and Chinese accounting standards
□Applicable ? Not applicable
standards. If reconciliation adjustments are made to data already audited by a foreign auditing firm, the
name of such foreign auditing firm shall be noted.
□Applicable ? Not applicable
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