Jiangsu Yanghe Distillery Co., Ltd.

2024 Annual Report

April 2025

Section I Important Statements, Contents and Definitions

The board of directors, board of supervisors, directors, supervisors and senior management of Jiangsu YangheDistillery Co., Ltd. (hereinafter referred to as the Company) hereby guarantee that the information presented inthis report is free of any false records, misleading statements or material omissions, and shall individually andtogether be legally liable for truthfulness, accuracy and completeness of its contents.

Mr. Zhang Liandong, the responsible person for the Company, Mr. Yin Qiuming, the responsible person foraccounting affairs and Mr. Zhao Qike, the responsible person for accounting department (the accountingsupervisor) have warranted that the financial statements in this report are true, accurate and complete. Except forthe directors listed below, all other directors attended the board meeting in person to review this annual report.

The future plans and other forward-looking statements mentioned in this annual report, due to their inherentuncertainties, shall not be regarded as substantive commitments of the Company to investors. Investors andpeople concerned should maintain adequate risk awareness and understand the difference between plans,predictions and promises. Investors are kindly reminded to pay attention to possible investment risks.

In the annual report, the possible risks in the operation of the Company are described in detail (see 11. Outlookfor the Future Development of the Company in Section III Management Discussion and Analysis). Investors arekindly reminded to pay attention to relevant content.

The profit distribution plan approved by the board of directors: based on 1,506,445,074 shares, a cash dividend ofCNY 23.17 (tax inclusive) will be distributed for every 10 existing shares held, 0 shares of bonus shares (taxinclusive), and reserves would not be converted into share capital.

The Company’s Chinese 2024 Annual Report was publicly disclosed on the Shenzhen Stock Exchange andwww.cninfo.com.cn on 29 April 2025. If there are any differences between the English version and the Chineseone, please refer to the latter.

ContentsSection I Important Statements, Contents and Definitions……………………………….2Section II Company Profile and Key Financial Results……………………………………….6Section Ⅲ Management Discussion and Analysis……………………………………………11Section Ⅳ Corporate Governance…………………………………………………………………..37Section Ⅳ Environment and Social Responsibility…………………………………………..72Section Ⅳ Significant Events…………………………………………………………………………..79Section Ⅳ Changes in Shares and Information about Shareholders……………….. 94Section Ⅳ Information about Preference Shares…………………………………………… 104Section Ⅳ Information about Bonds…………………………………………………………….. 105Section Ⅳ Financial Reports……………………………………………………………………………106

Document Catalog(I) Financial statements containing the signatures and seals of the person in charge of the Company, theaccounting head, and the person in charge of the accounting body (accounting manager).(II) The original audit reports with the seal of the accounting firm and the signatures and seals of the certifiedpublic accountants.(III) The originals of all Company documents and announcements publicly disclosed during the reporting period.

Definitions

Section II Company Profile and Key Financial Results

I. Corporate information

II. Contact us

III. Information disclosure and place where the annual report is kept

IV. Company registration and alteration

V. Other relevant informationAccounting firm engaged by the Company

Sponsors engaged by the Company to continuously perform its supervisory function during the reporting period

□Applicable ?N/A

Financial adviser engaged by the Company to continuously perform its supervisory function during the reportingperiod

□Applicable ?N/A

VI. Key accounting data and financial indicatorsWhether the Company performed a retroactive adjustment or restatement of accounting data?Yes ?No

(CNY)

The Company's net profit before or after deducting non-recurring profits and losses in the last three fiscal years isnegative, and the audit report of the last year shows that the Company's ability to continue operating is uncertain

□Yes ?No

The net profit before or after deducting non-recurring profits and losses is negative

□Yes ?No

VII. Differences in accounting data under domestic and overseas accounting standards

1. Differences in the net profits and net assets disclosed in the financial reports prepared under the internationaland China accounting standards

□Applicable ?N/A

No such differences during this period.

2. Differences in the net profits and net assets disclosed in the financial reports prepared under the outboundand China accounting standards

□Applicable ?N/A

No such differences during this period.

VIII. Key financial results by quarter

Unit: CNY

operating activities

operating activities

Whether there are any material differences between the financial indicators above or their summations and thosewhich have been disclosed in quarterly or semi-annual reports.

□Yes ?No

IX. Non-recurring profits and losses

Unit: CNY

Details of other profit and loss items that meet the definition of non-recurring profit and loss：

□Applicable ?N/A

The company has no specific circumstances of other profit and loss items that meet the definition of non-recurringprofit and loss.Description of defining non-recurring profit and loss items listed in the Explanatory Announcement No. 1 onInformation Disclosure for Listed Companies -Non-recurring Profits and Losses as recurring profit and loss items.

□Applicable ?N/A

There is no such situation that the company classifies the non-recurring profit and loss items listed in the

Explanatory Announcement No. 1 on Information Disclosure for Listed Companies -Non-recurring Profits and Lossesas recurring profit and loss items.

Section Ⅲ Management Discussion and AnalysisI. Industry conditions faced by the company during the reporting period

During the reporting period, the competition in the liquor industry continued and became increasingly fierce,gradually shifting from diversified and differentiated competition to the competition centering on the leadingenterprises. The characteristics of strong concentration and strong differentiation became more prominent,indicating increased Matthew effect. According to the data from the National Bureau of Statistics, the output ofliquor (equivalent to 65 degrees, commodity volume) of enterprises above designated size in China was 4.145million kiloliters in 2024, a year-on-year decrease of 1.80%.

Yanghe is a large Chinese Baijiu production enterprise possessing high brand awareness and reputation nationwide.It is the only enterprise in the Chinese Baijiu industry that owns two famous Chinese Baijiu brands, Yanghe andShuanggou, two time-honored Chinese brands, six well-known Chinese trademarks, and two 4A level scenic spots.The company's major products are Dream Blue, Sky Blue, Ocean Blue, Sujiu, Zhenbaofang, Yanghe Daqu,Shuanggou Daqu and so on, which have high brand recognition and reputation throughout China.

II. Main Businesses of the Company During the Reporting Period

The company shall comply with the disclosure requirements of food and wine manufacturing industries in Self-regulatory Guidelines for Listed Companies in Shenzhen Stock Exchange No. 3 - Industry Information Disclosure

The main business engagedThe main business of the company is the production and sale of Chinese Baijiu, that is manufactured by solid-statefermentation and traded mainly through two modes: wholesale distribution and online direct sales. The company'smain business and business model did not change during the reporting period. According to the IndustryClassification Guidelines for Listed Companies (revised in 2012) issued by the CSRC, the company belongs to the"C15 wine, beverage and refined tea manufacturing industry".

Information about brand operationThe Company’s products include Dream Blue, Sujiu, Sky Blue, Zhenbaofang, Ocean Blue, Yanghe Daqu, ShuanggouDaqu, Guijiu, Sidus Wine and so on. According to the price range standard of ex-factory price, the Companycategorizes the products into mid/high end and ordinary products. The mid/high end products refer to those withex-factory price ≥ CNY 100 / 500ml, mainly including Dream Blue craft class, Dream Blue M9, Dream Blue M6 +,Dream Blue Crystal version, Su Jiu, Sky Blue, Zhenbaofang (Difang, Shengfang), Ocean Blue and so on. Ordinaryproducts refer to those with ex-factory price ＜ CNY 100 / 500ml, mainly consisting of Yanghe Daqu and ShuanggouDaqu etc.

The revenue of various products is as follows:

Unit: CNY

Main sales model

The company sells its products mainly through distributors. Its sales models include wholesale distribution andonline direct selling, among which wholesale distribution is the main sales model.?Applicable □N/A

1. Disclosure of main business composition by different types

Unit: CNY

By sales model

By sales model

Wholesaledistribution

Subtotal

By geographical segment

By geographical segmentJiangsu

Ex-Jiangsu

Subtotal

Mid/high

endproducts

Subtotal

The company's main products are classified according to the price range standard of ex-factory price, includingmedium/high end products ≥ 100 CNY / 500ml and ordinary products < 100 CNY / 500ml.

2. Disclose the number of distributors according to regional classification

Jiangsu

Total

3. Settlement method and distribution method

The Company mainly adopts the bank transfer method for settlement, and applies the method of payment beforegoods for product sales.

4. Sales amount and sales proportion of the top five distributors

In 2024, the total sales amount of the top five distributors was CNY 2,351.77 million, accounting for 8.15% of thetotal sales of this year. Among the sales of the top five distributors, the sales from related parties were CNY 0,accounting for 0% of the total sales of this year. The total amount of receivables of the top five distributors at theend of the period was zero.

Retail sales accounted for more than 10%.

□Applicable ?N/A

Online direct selling

?Applicable □N/A

Unit: CNY

The sales price of the main products contributing more than 10% of the total operating revenue of the currentperiod changed by more than 30% compared with the previous reporting period

□Applicable ?N/A

Procurement mode and content

Unit: CNY

Procurement of raw materials from cooperatives or farmers accounted for more than 30% of the total purchaseamount

□Applicable ?N/A

The price of major outsourced raw materials changed by over 30% year on year

□Applicable ?N/A

Main production modeThe Company's production mode is self-produced mode, with major parts including raw material crushing,fermentation, distillation, grade storage, liquor body design and combination, product packaging, etc.Commissioned production

□Applicable ?N/A

The main components of operating costs

Unit:CNY

Output and inventory

1. Production volume, sales volume and inventory of major products

2. Inventory of finished and semi-finished Baijiu at the end of the period

46,169.17

3. Capacity of the Company

Shuanggou Distillery

III. Analysis of core competitivenessThe Company has significant advantages in natural environment, quality technology, brand building, marketingnetwork and so on. The Company has formed its unique core competencies, which remain unchanged during thereporting period.

1. Natural environment advantage

The Company is located in Suqian, the capital of Chinese Baijiu with 'three rivers, two lakes and one wetland’. Asone of the three famous wetlands in the world, Suqian enjoys equal popularity with the Scotch whisky producingarea and the French Cognac producing area. The long history and unique ecological environment provide a goodsource of water, soil and air for production for liquor production. Especially the microorganism condition issignificantly beneficial to production. The Yanghe distillery originated in the Sui and Tang Dynasties, flourished inthe Ming and Qing Dynasties. It had been sold in Jianghuai area during the period of Yong Zheng of Qing Dynasty.It has a good reputation that 'dainty taste derived from fortune spring and liquor ocean, which made Yanghe rankfirst in Jianghuai area'. Shuanggou alongside Yanghe was praised as the origin of Chinese natural liquor by domesticand overseas experts due to the discovery of drunken ape fossils in Xiacaowan.

2. Quality advantage

Considering the diversification and individuation of consumption demand, the Company took the lead in breakingthe traditional classification of Baijiu flavor. The Company classifies Baijiu based on taste and emphasizes the valueof taste. The Company strengthens the mellowness of Baijiu, puts forward the new style of the mellow Baijiu quality,and deeply meets core demand of target consumers. It has successfully established new craft of mellow Baijiuproduction and system framework of mellowness mechanism, which caters to market consumption. In June 2008,"Mellowness", a special type of Yanghe, was first written into the national standard in China ProtectedGeographical Indication Product- Yanghe Daqu (Standard No. GB/T22046-2008). In 2019, the company formulatedthe group standard named "Mellow Baijiu" (i.e., T/CBJ2104-2019), which further enriched and improved therelevant standards of mellow Baijiu. In 2022, the company formulated the standards of "Baijiu Wetland Real EstateArea" (T/CBJ2305-2022) and "Wetland Baijiu" (T/CBJ2110-2022), which promoted the specification of technicalquality standards for wetland liquor. In 2023, the company released the “China's Baijiu Mellow Quality

Development Report”, and comprehensively constructed the “mellow system”.

3. Talent advantage

The Company has 56 Masters of Chinese Baijiu, 78 provincial Baijiu tasting committee members and 2,009technicians. The Company also has 10 national and provincial technical research and development platforms. Thedistinctness advantage of technical talents provides technical support for the continuous improvement of mellowBaijiu quality. In 2024, the company's three scientific and technological achievements, including "Key Technologiesfor Analysis and Application of Microbiome in the Brewing Process of Mellow Liquor", have been appraised by theChina Light Industry Federation, five scientific research projects have won provincial and above awards, and thecompany won the first and second places in the Second China Liquor Chief Taster Competition.

4. Brand advantage

The Company, as one of the eight traditional well-known Baijiu enterprises, is the only one in China's liquor industrythat has two Chinese famous baijiu, Yanghe and Shuanggou, two Chinese time-honored brands, six well-knownChinese trademarks such as Yanghe, Shuanggou, Blue Classic, Zhenbaofang, Dream Blue, Su, two national 4A scenicspots, two national industrial heritages, and a national key cultural relics protection unit. In the research report"Top 500 Most Valuable Chinese Brands in 2024" released by GYBrand Global Brand Research Institute, thecompany ranked third in China's liquor industry with a brand value of 90.979 billion yuan; in the "Global MostValuable Liquor Brands List in 2024" released by Brand Finance, a world-renowned brand value researchorganization, the company ranked fifth in the world with a brand value of 6.3 billion US dollars.

5. Marketing network advantage

The company has a marketing team with innovative ideas and strong execution. Its marketing network haspenetrated into all counties and regions in China. The high-speed channel for distribution has been basically built,laying a solid foundation for future market expansion and category extension. Meanwhile, as a traditionalenterprise, Yanghe has consistently optimized new sales model and advanced digital transformation. The salesdigitalization of Yanghe has become a case study for Tsinghua University, showcasing the leading position of Yanghein internet application.

IV. Analysis of main business

1. Overview

At the beginning of the reporting period, the company planned to strive for a year-on-year growth of 5%-10% inoperating income in 2024. During the reporting period, the liquor industry entered the stage of zero-sumcompetition, and the market competition became more intense. The medium and sub-high-end price categorieswhich the company's main products compete in were under great pressure. In the view of principles of scientificand sustainable development, the company actively adjusted its business strategies to cope with changes in theexternal environment and problems in its own development. In 2024, the company achieved operating income of

28.876 billion yuan, a year-on-year decrease of 12.83%; the net profit attributable to shareholders of listedcompany was 6.673 billion yuan, a year-on-year reduction of 33.37%.

2024 was a year of enterprise readjustment, the company concentrated on long-termism, main responsibilitiesand primary businesses, and comprehensively promoted the following tasks:

Promoting productions quality steadiness. The company deepened the application of mellow mechanism,

optimized the key processes and parameters that affect the quality of base liquor, and continuously improved thedistilling process system. Therefore, the company’s base liquor achieved outstanding output and quality, withdistinctive characteristics and a complex aroma of mellow taste. Three scientific and technological achievementshave been appraised by the China Light Industry Federation, and five scientific research projects have wonprovincial and above awards. The company also took the first and second places of Second China Liquor ChiefSommelier Competition, and the technical strength of the company sustained. The digital management platformfor liquor body was launched to facilitate the interaction between liquor body design and intelligent digitalization,thus further securing the stability of product quality.

Highlighting value of productions through three-dimensional dissemination. The company released the strategyof aged liquor with mellow taste, highlighting the core value of "Aged liquor produced by hand-made skills fromintangible cultural heritage ", and launched the Chinese high-end aged liquor - Mengzhilan Hand-made Class,which made the company become the first aged liquor in the industry to be authorized by the "China AlcoholicDrinks Association" and authoritatively certified by the third-party certification agency "Fangyuan Group", furtherraising the brand reputation as well. Centralizing the theme of mellowness of a great country, the companypropagated its main tune of the brand in stereoscopic dimension, by presenting a tribute to the 60th anniversaryof the establishment of diplomatic relations between China and France, participating major international eventssuch as the G20 Summit and the Davos Forum, and launching the "Yanghe Mengzhilan" Jielong III carrier rocket.All those efforts were dedicated to the further enhancement of brand image.

Focusing on marketing and constructed an unshakable basis. Based on the principle of "streamlining andefficiency, strengthening the overall management", the company optimized its marketing organization structure,raised the regional focus by brands, and enhanced synergy between different brands. The managementdistinguished the market into four categories: highland, model, weak, and blank markets, and accordingly appliedlocal policies with matched resources. The company deepened the provincial base camp market and the YangtzeRiver Delta market, which turned into a strategic focus underpinned by necessary resources. The deployment ofMengzhilan Hand-made Class Aged Liquor would be mainly focusing on replenishment and improvement of thecrucial aspects of the leading brand products matrix, and fulfill the marketing and production structure upgradingand demands for competition. The company highlighted terminal operations, optimized the "Dream Benefit"platform, and took multiple measures to enhance enthusiasm of the terminal and maintain the stability of themarket. The company improved the rating, entry and exit mechanism of distributors, and built a dealer counselplatform to ensure the basic management of marketing sophisticated.

Promoting the sustainable development continuously and thoroughly. The company committed to promotesustainable governance, improved the platform for non-executive directors to comply with their duties, upgradedthe corporate governance system, strengthened the information system of internal audit, and continuouslyoptimized the shareholders return mechanism. For the purpose of propelling green and sustainability, carrying outenergy conservation and carbon reduction thoroughly, the company founded two zero-carbon workshops, whichwere verified by the carbon management system certification and won recognitions such as "The LeadingEnterprise of Chinese Industrial Peak Carbon Dioxide Emissions and Carbon Neutrality for the year 2024". Thecompany deepened the sustainability development of society, boosted smartness production projects, improvedthe supply chain system, and continuously lifted the level of digital and intelligent application. Yanghe compliedwith the enterprise annuity system, and formulated packages of employee caring policies. The company have beenawarded as the honorary title of "Annual Charity Enterprise" by the China Charity Federation for three consecutive

years, for supporting Chinese aerospace, rural revitalization, and students to realize their dreams.

During the reporting period, facing the changes of the external environment, the base of management issue of thecompany further consolidated, nevertheless the transformation and adjustment still require time and space. Fordetails of the next step of work plan, please refer to the "Business Plan by the year 2025" in Section 3 of this report.

2. Revenues and cost of sales

(1) Breakdown of operating revenues

Unit：CNY

(2) Business segment, products, geographical segments or sales models contributing over 10% of the operatingrevenues or profits

?Applicable □N/A

Unit: CNY

distribution

Under the circumstances that the statistical standards for the Company’s main business data adjusted in thereporting period, the Company’s main business data in the current one year is calculated based on adjustedstatistical standards at the end of the reporting period.

□Applicable ?N/A

(3) Whether revenue from physical sales is higher than service revenue

?Applicable □N/A

Reasons for any over 30% YoY changes in the data above.

□Applicable ?N/A

(4) Execution of significant sales contracts and significant purchase contracts in the reporting period

□Applicable ?N/A

(5) Breakdown of cost of sales

By business and product segment

Unit：CNY

Unit：CNY

Drinks

Note: N/A

(6) Changes in the scope of the consolidated financial statements for the reporting period

?Applicable □N/A

a)Establishment of subsidiaries

1) Jiangsu Yangmingliwei Liquor Co., Ltd., a controlling subsidiary, subscribed RMB10 million established TibetYangmingwei Liquor Co., Ltd., which was included in the scope of the consolidated financial statements fromJanuary 2024.

2) Jiangsu Yiguoxiang Biotechnology Co., Ltd., a controlling subsidiary, subscribed RMB2 million established SuqianYiguoxiang Sales Co., Ltd., which was included in the scope of the consolidated financial statements from June2024.

3) Jiangsu Yiguoxiang Biotechnology Co., Ltd., a controlling subsidiary, subscribed RMB1 million to establishedHangzhou Yiguoxiang Brand Operation Management Co., Ltd., which was included in the scope of the consolidatedfinancial statements from February 2024.

4) The Company subscribed RMB20 million established Hainan Yanghe Trading Co., Ltd., which was included in thescope of the consolidated financial statements from July 2024.

b) Deregistration of subsidiaries

1) Jiangsu Shiyang Network Technology Co., Ltd., a holding subsidiary, has completed the industrial and commercialderegistration and would no longer be included in the scope of the consolidated financial statements fromNovember 2024.

2) Jiangsu Yanghe Micro Classroom Network Technology Co., Ltd., a holding subsidiary, has completed the industrialand commercial deregistration and would no longer be included in the scope of the consolidated financialstatements from December 2024.

(7) Major changes in the business, products or services in the reporting period

□Applicable ?N/A

(8) Main customers and suppliers

Sales to major customers of the Company

Information on top five customers

Other information on major customers

□Applicable ?N/A

Major suppliers of the Company

Information on top five suppliers

Other information on major suppliers

□Applicable ?N/A

3. Expense

Unit：CNY

The company shall comply with the disclosure requirements of food and wine manufacturing businesses in SelfRegulatory Guidelines for Listed Companies in Shenzhen Stock Exchange No. 3 - Industry Information Disclosure

The composition of selling and distribution expenses

Unit：CNY

distribution

expenses

Advertising andpromotionexpense

Travel expense

E-commerceexpense

Subtotal

Composition of advertising costs:

Unit：CNY

4. R&D input

?Applicable □N/A

liquor.

yeast production,take the metabolicregulation of flavorsubstances as theguide, clarify theinfluence ofdifferent stackingfermentationmethods onsesame-flavoredliquor, anddetermine thestacking processparameters.

Information about R&D personnel

Information about R&D input

Reasons and effects of YoY change in the composition of R & D personnel.

□Applicable ?N/A

Reasons for any significant YoY change in the ratio of the R&D input to the operating revenues.

□Applicable ?N/A

Reasons for any significant YoY change in the ratio of the R&D input to the operating revenues.

□Applicable ?N/A

5. Cash flow

Unit：CNY

Explanation of why the data above varied significantly.?Applicable □N/A

(1) Cash outflows from investing activities increased by 40.30% in this period compared with the previous period,mainly due to the increase in structured deposits purchased during this period.

(2) Net cash flows from investing activities decreased by 297% in this period compared with the previous period,basically because the increase in cash outflows from investing activities in this period was greater than the increasein cash inflows from investing activities, resulted in a reduction in net cash flows from investing activities.

(3) Cash inflows from financing activities reduced by 100.00% in this period compared with the previous period,mainly for the cash received from minority shareholders' investment by subsidiaries in the previous period, did notoccur in this period.

(4) Net increase in cash and cash equivalents declined by 414.69% in this period compared with the previous period,mainly attributed to the decrease in net cash flows from operating activities, investing activities and financingactivities in this period.

An explanation of the reasons for the significant difference between the net cash flow generated by the Company'soperating activities and the net profit for the year during the reporting period

□Applicable ?N/A

V. Analysis of non-core business?Applicable □N/A

Unit：CNY

VI. Analysis of assets and liabilities

1. Significant changes of asset items

Unit：CNY

equityinvestments

The proportion of overseas assets is relatively high.

□Applicable ?N/A

2. Assets and liabilities measured at fair value

?Applicable □ N/A

Unit：CNY

Other changesOther changes are the net change of bank acceptance bills during the period and the impacts of exchange ratefluctuating of other non-current financial assets.

Whether measurement attribution of main assets changed significantly during this period

□Applicable ?N/A

3. Restricted asset rights as of the end of this reporting period

VII. Investment

1. Total investment

?Applicable □N/A

2. Significant equity investment made in the reporting period

□Applicable ?N/A

3. Significant non-equity investment ongoing in the reporting period

□Applicable ?N/A

4. Investment in financial assets

(1) Securities investment

?Applicable □ N/A

Unit：CNY

(LimitedPartnership)

(2) Derivative investments

□Applicable ?N/A

No such cases in the reporting period.

5. Use of fund-raising

□Applicable ?N/A

No such cases in the reporting period.

VIII. Sale of major assets and equity Interests

1. Sale of major Assets

□Applicable ?N/A

No such cases in the reporting period

2. Sale of major equity Interests.

□Applicable ?N/A

IX. Analysis of major subsidiaries

?Applicable □N/AMain subsidiaries and joint companies with an over 10% influence on the Company’s net profit

Unit：CNY

Jiangsu BlueDream E-commerceCo., Ltd

Acquisition and disposal of subsidiaries during the reporting period?Applicable □ N/A

X. Structured entities controlled by the Company

□Applicable ?N/A

XI. Outlook for the future development of the Company

(1) Industry situation analysis

a) Industry output declines. According to the data from the National Bureau of Statistics, in 2024, the total outputof liquor (equivalent to 65 degrees, commodity volume) of enterprises above designated size nationwide was 4.145million kiloliters, a year-on-year decrease of 1.8%. The competition of the industry shifted into inventories in stocksustained to upgrading.b) The Matthew effect intensifies. Against the background of the slowdown in the overall growth of the liquorindustry, the competition of the industry is accelerating, and the market shares are further centralized inadvantageous production areas, enterprises and brands.c) Rational consumption is demonstrated. Liquor consumption has entered the era of "consumption rationality aswell as price rationality", and consumers have formed a drinking consumption concept of rational drinking, wiselyconsumption, and drinking less but better.d) Quality pursuit is boosting. With the continuous enhancement of healthy awareness national widely, consumerspay more attention to health and safety and product quality, and prefer products with comfortable taste andexcellent quality.

(2) The company's development strategy and business plan

a) Development strategyDuring the "14th Five-Year Plan" period, the company adheres to the consumer-centered growth route, with

double-famous baijiu brands as the main body and multi-brand as the pillar, focuses on quality, brands, cultureand innovation, and builds the "12345" strategic system, making Yanghe brand as the leading force and Shuanggoubrand as the surging power. The company aims to promote the continuous growth of the quantity and the steadyimprovement of the quality to a higher level, to achieve better, more balanced, higher quality and more efficientdevelopment, leading Yanghe to become a Chinese taste that Chinese are proud of and a Chinese business cardthat is remembered by the world.

b) Business plan for 2025According to current period development of the liquor industry and the market competition environment,combining with the current development stage of the company, in 2025, we would like to concentrate on the Long-termism, strengthen quality publicizing and good reputation orienting, build a brand system operating based ondemands customers, and accumulate potential competitiveness of brand. The company will thoroughly centralizeon dominating products and major markets, further consolidate the market foundation, and promote healthy andsustainable development. The main issues to be complied are as followings:

(I) In terms of marketing, the company would maintain the control of quantity and price of dominating productsand actively optimize the relationship between supply and demand through methods such as reasonable quotacontrol. The company will clarify the policy guiding of open bottles for bonus and promote the benign growth ofchannels, centralizing Jiangsu and periphery around Jiangsu markets, to create and foster models and highlandmarkets, strengthen channels and promote them positively, and solidify the base market. We will upgrade theeffectiveness of resources allocation, support core terminals to improve, enhance the market expansion andoperation capabilities of dealers, and support dealers to expand and prosper. We will reinforce BC linkage, analysisand control expenditure effectiveness, and improve the accuracy of expense investment. We hope to achievebreakthroughs of hotel channels expansion and group purchase channels, pushing forward market penetrationinto rural community and continuously strengthening the basal channels.

(II) In terms of brands, we would like to focus on the value of scarcity of "mellowness aged liquor ", continue tocarry out integration of the brands as well as their dissemination, and deepen the high-end image of the hand-made class. Combining with propagandize the theme of "Mellowness Aged Liquor of a Great Country", we wouldfocus on consumption scenarios and daily life scenarios, and strengthen the brand scenario expression. We hopeto enhance the reputation of quality appreciated by consumers, accelerate the upgrading of the productionspromotion system thoroughly, and launch diversified consumer development activities, to discover, nurture andtransform consumers whole-heartedly.

(III) In terms of quality, we would like to perfect the technological innovation system gradually, promoteindependent innovation and deepen integration of industry, academia and research, increase efforts to tackle keyissues and the transformation to apply research results. We target to boost the mellow distilling system, optimizeproduction capacity, improve quality, and continuously develop higher-quality raw liquor that is richer, cozier moremellowness. We will ameliorate the resource guarantee system, promote the application of the digital platformfor liquor body, efficiently coordinate the scientific allocation of resources, and ensure the capability thatguarantee products iteration and upgrading. The company plans to enhance the quality expression system, anddeeply explore the mellow genes, mellow mechanisms and mellow culture.

(IV) In terms of management, we would like to strictly follow the latest requirements of laws and regulations to

optimize corporate governance structure and system of the company. Centering on the top-level planning of"Digital Yanghe", we will further promote the digitalization and intelligence of operations, strengthen theapplication of AI technology in customer service, business training and other management aspects, and deeplyexplore innovative methods and effective paths for the brand and its reputation building in the AI era. We willcontinue to study and implement the "Dual-Carbon" policy, promote the use of smartness energy platforms,improve the internal assessment system for carbon emissions, and deeply integrate the ESG concepts into theinternal management of the enterprise. We will adhere to prevent and control from the source, through high-efficiency governance accelerate the construction of an inherent safety management standard system, andcontinue to tighten the four major responsibilities of all employees i.e. "production safety, firefighting safety, foodsafety, and public security safety."

(3) Possible risks

1. Risk of uncertainty of the external environment. Currently, the economy of China is gradually recovering, butstill facing a complex and severe external situation, which brings great uncertainties to the development of theliquor industry.

2. Risk of intensified industry competition. Presently squeeze-type competition in the liquor industry is accelerating,and the competition among liquor enterprises, especially the market competition among the leading liquorcompanies, becomes more intensified. Each famous liquors are competing directly in the same region.

3. Risk of changes in consumer demand. The scale and group structure of the current main liquor consumer groups,their demands and concepts have changed, and the drinking habits of the new consumer groups would have acertain impact on the development of the industry.

XII. Visits paid to the Company for research, communication, interview,etc. during the reporting period.?Applicable □N/A

Securities;IndustrialSecurities;DongxingSecurities;TianfengSecurities;ZhongtaiSecurities,otherbrokerageanalysts andinstitutionalinvestors.

XIII Development and implementation of market value managementsystem and valuation enhancement plan

Whether the company has established a market value management system.

?Yes □NoWhether the company has disclosed its valuation enhancement plan.

?Yes ?NoIn order to strengthen the company's market value management, promote the improvement of the company'sinvestment value, and safeguard the legitimate rights and interests of the company, investors and otherstakeholders, in accordance with the "Company Law of the People's Republic of China", "Securities Law of thePeople's Republic of China", "Several Opinions of the State Council on Strengthening Supervision, Preventing Risksand Promoting High-quality Development of the Capital Market", "Guidelines for the Supervision of ListedCompanies No. 10-Market Value Management", "Shenzhen Stock Exchange Listing Rules" and other relevant laws,administrative regulations, normative documents and the company's "Articles of Association" and other provisions,and in combination with the company's actual situation, the "Market Value Management System" was formulated.The system clarifies the market value management institutions and personnel, specific management measures,monitoring and early warning mechanisms, etc., and disclosed after being reviewed and approved at the seventhmeeting of the eighth board of directors of the company on December 30, 2024.

XIV Implementation status of the 'Quality Improvement and DualEnhancement' action plan

Whether the company disclosed the 'Quality Improvement and Dual Enhancement' action plan?Yes □NoTo embody the development concept of 'investors first' for listed companies, continuously enhance the company'svalue creation capability and shareholder return capability, the company has formulated and disclosed the 'QualityImprovement and Dual Enhancement' action plan. For specific details, please refer to the announcement titled'Announcement on the 'Quality Improvement and Dual Enhancement' Action Plan' disclosed by the company, onthe Juchao Information Network (www.cninfo.com.cn) (Announcement No.: 2024-002). The company boosts theimplement of "Quality Improvement and Dual Enhancement" action plan positively:

Firstly, focus on the main responsibilities and primary business. Facing the intricate external environment andmarket competition circumstance, the company practically adjusted its business strategy in line with the steady,rational and sustainable development of the enterprise to cope with the upgrading of external competition andthe problems existing in its own development. Secondly, lay a solid foundation of governance. In 2024, threesystems including the "Independent Director Working System" and the "Independent Director Special ConferenceWorking System" were formulated, and 10 systems such as the "Company Articles of Association" and the "Rulesof Procedure of the Audit Committee of the Board of Directors" were revised to further improve the corporategovernance system. Thirdly, standardize information disclosure. By the year 2024, 79 regular reports andtemporary announcements were disclosed, social responsibility reports or environmental, social and corporategovernance (ESG) reports were disclosed for consecutive 14 years, and the A rating was obtained by the companyin the information disclosure assessment organized by the Shenzhen Stock Exchange for twelve successive years.Fourthly, proactive communication. Interaction and communication with investors in multiple methods, hold the2023 annual report online performance briefing and the 2023 annual shareholders' meeting, positively interactedwith shareholders and investors, and deepen investors' understanding of the value of the company. Fifthly,enhancing shareholder returns. Actively share the results of corporate development achievements with investors,for the year 2023 a cash dividends of RMB 7.02 billion (tax included), accounting for 70.09% of the net profitsattributable to shareholders of the listed company were delivered to investors; to ensure the further enhancementof shareholder returns, the company has formulated the "Cash Dividend Return Plan (2024-2026)" and

implemented the 2024 interim profit distribution, pay cash dividends of CNY 23.30 (tax included) per 10 shares toall shareholders, and the mid-term cash dividends subtotaled was CNY 3.51 billion (tax included). The 2024 profitdistribution pre-arranged plan is based on the total existing share capital of 1,506,445,074 shares, cash dividendsof CNY 23.17 (tax included) per 10 shares would like to paid to all shareholders, totally CNY 3.49 billion (tax included)would be paid. The distribution plan remains to be submitted to the general meeting of shareholder fordeliberation.

For details on the specific progress of the company's " Quality Improvement and Dual Enhancement " action plan,please refer to the "Progress Announcement on the Action Plan for Quality Improvement and Dual Enhancement" disclosed by the company on April 29, 2025.

Section IV Corporate Governance

I. Basic Situation of Corporate Governance

The company has strictly been following the "Company Law", "Securities Law", "Governance Guidelines for ListedCompanies", "Shenzhen Stock Exchange Listing Rules" and other laws, administrative regulations, departmentalrules and normative documents. Combining the actual development of the company, the company constantly hasimproved its modern enterprise system and corporate governance structure. During the reporting period, theoverall operation of the company was standardized and complied line with the governance requirements of listedcompanies.

1. Shareholders and shareholders’ meetings

The responsibilities of the company's general meeting of shareholders were clear, with accurate rules of procedureand practical implementation. The calling, convening and deliberation procedures of the company's generalmeeting of shareholders complied with the relevant provisions of the Company Law, the Articles of Associationand the Rules of Procedure for the General Meeting of Shareholders of the Company. All shareholders were treatedequally, especially to ensure that small and medium shareholders enjoy equal status and ensure that small andmedium shareholders can sufficiently exercise its own rights. The board of directors of the company earnestly hasimplemented the resolutions of the general meeting of shareholders.

2. Directors and Board of directors

The responsibilities of the board of directors of the company were clear, and all directors could perform their dutiesconscientiously. The board of directors of the company elected directors in strict accordance with the selectionand appointment procedures stipulated in the Company Law and the Articles of Association. The board of directorsof the company currently consisted of 11 directors, 4 of which were independent directors. The composition ofthe board of directors conformed to the requirements of laws and regulations. The board of directors of thecompany strictly complied with the "Company Law", "Articles of Association" and other relevant regulations toregulate the deliberation and operation of the board of directors. All directors of the company could attend theboard of directors in accordance with the "Procedure Rules of the Board of Directors", "Working System forIndependent Directors" and other regulations, diligently and conscientiously reviewed each case, making scientificand reasonable decisions on major issues of the company, and earnestly safeguarding the interests of the companyand the legitimate rights and interests of all shareholders. The company's board of directors consisted of fourprofessional committees, namely the strategy committee, the nomination committee, the audit committee andthe remuneration and appraisal committee. Each committee had a clear division of labor, powers andresponsibilities, and gived full play to its professional functions, providing scientific and professional opinion forthe decision-making of the board of directors.

3. Supervisors and Board of Supervisors

The company's board of supervisors has clear responsibilities, and all supervisors can conscientiously andresponsibly perform their duties. The board of Supervisors of the company election was in strict accordance withthe recruitment procedures stipulated in the Company Law and the Articles of Association and etc. The board ofsupervisors of the company was composed of 4 supervisors, among which 2 are employees' representatives. Thecomposition of the members of the board of supervisors meeted the requirements of laws and regulations. The

board of supervisors operated in strict accordance with the company law, the company's articles and otherregulations, the supervisors could attend the board requested by the rules of procedure of the board of supervisors,earnestly performed their duties, effectively supervising and expressing opinions on the major issues of thecompany, financial status, and how the directors and President perform. Safeguarding the legitimate rights andinterests of the company and shareholders was also the duty of the board of supervisors.

4. Performance appraisal and incentive and restraint mechanism

The appointment of the company's directors, supervisors and senior management personnel was open andtransparent, in line with relevant laws and regulations, and a fair and transparent management performanceevaluation standard and incentive and restraint mechanism have been established. During the reporting period,the company conducted a performance appraisal on the goals set by the executive suites in accordance with theannual business plan, and all the executive suites have conscientiously performed their duties.

5. Performance appraisal and incentive and restraint mechanism

The controlling shareholder of the company exercised the rights of the investor and took the obligations in strictaccordance with the requirements of the Company Law. The company and the controlling shareholder separatedpersonnel, assets and finances, with independent organization and business, accounting independently and takingresponsibilities and risks independently. During the reporting period, the controlling shareholder did not directlyor indirectly interfere with the company's decision-making and business activities beyond the company's generalmeeting of shareholders, and there was no situation where the controlling shareholder harmed the legitimaterights and interests of other shareholders of the company. There was no major related transaction between thecompany and its controlling shareholder, there was no phenomenon that the controlling shareholder occupies thefunds of the company, and the company did not provide guarantees for the controlling shareholder and itssubsidiaries.

6. Investor relations activities

The company payed great attention to the management of investor relations and actively safeguarded thelegitimate rights and interest of the company's shareholders. In addition to performing information disclosureobligations diligently and honestly, the chairman, president and secretary of the board of directors maintainedpositive interactions with investors by receiving investor surveys, participating in online performance briefings andbrokerage strategy meetings, etc. The securities department acting as a specialized relationship managementagency, strengthened communication with investors through telephone, email, interactive and other methods,fully guaranteeing the investors' right to know, and safeguarding their legitimate rights and interests.

7. Stakeholders, environmental protection, social responsibility

The company fulfilled its social responsibility obligations in accordance with the requirements of socialresponsibility, fully respected and safeguardd the legitimate rights and interests of relevant stakeholders, realizedthe coordination and balance of the interests of the society, government, shareholders, the company, employeesand other parties, and jointly promoted the harmonious and stable development of the company. The companyadvocated the governance concept of ‘green brewing, ecological enterprise’, integrates ecological andenvironmental protection requirements into the company's development strategy and corporate governanceprocess. While maintaining the sustainable development, the company actively participated in social welfareundertakings and practices social responsibility.

8. Information disclosure and transparency

In strict accordance with the requirements of the regulatory authorities, the company earnestly implementedthe "Information Disclosure Management System", "Investor Relations Management System" and others,strengthened the management of information disclosure affairs, and earnestly fulfilled its information disclosureobligations in accordance with the law, and discloses truthfully, accurately, completely, timely and fairly.information, ensuring that all shareholders have equal access to information.

9 Continue to improve the internal management system

The company continued to improve the internal control system, further strengthen corporate governance, sothat the level of corporate governance has been further improved. The audit committee of the companycomprehensively reviewed and supervised the effectiveness of the company's financial reporting, internal controland corporate governance. As an internal audit unit, the company's audit center conductd routine and continuoussupervision and inspection for the improvement and implementation of the internal control system, timelydiscoverd and improved the deficiencies of internal control, ensured the effectiveness of internal control, andimproved the company's operation and management level and risk prevention ability.

Is the actual situation of corporate governance significantly different from laws, administrative regulations andregulations on listed company governance issued by the CSRC？

□ Yes ? No

The actual situation of corporate governance is not significantly different from laws, administrative regulationsand regulations on listed company governance issued by the CSRC.

II Company’s Independence in Assets, Personnel, Finances, Organizations and Businesses fromControlling Shareholders and Actual Controller

The company has a complete independent production and management system, and independent decision-making management ability, covering business, personnel, assets, organizations and finance five aspects.

1. For business aspect

The company's business structure is independent and complete, with the ability to independently face the marketand operate independently. There is no horizontal competition with the controlling shareholder, and thecontrolling shareholder does not directly or indirectly interfere with the company's operations.

2. For personnel aspect

The company has established an independent personnel and wage management system, and signed a "laborcontract" with employees. The chairman, president, vice president, chief financial officer and secretary of theboard of directors of the company receive remuneration from the company, but do not receive remuneration fromthe controlling shareholder. The directors, supervisors and senior management of the company do not holdpositions prohibited by laws and regulations in other companies with the same or similar business as the company.

3. For assets aspect

The company has a clear property relationship with the controlling shareholder, has independent land use rightsand housing property rights, and independently registers, builds accounts, accounts and manages company assets.

The controlling shareholder has not occupied or dominated the company's assets or interfered with the company'soperation and management of the assets.

4. For organization aspect

The company has a mature organizational system. The general meeting of shareholders, the board of directors,the board of supervisors, the management and each functional department operate independently, and acorresponding internal management and control system has been formulated, so that the division of labor amongeach department is clear, and each department performs its own duties. The cooperation with each other formsan organic whole, which ensures the legal operation of the company, and there is no subordination relationshipwith the controlling shareholder's functional department.

5. For finance aspect

The company has a complete and independent financial institution, equipped with sufficient full-time financialaccounting personnel, established an independent accounting system and financial management system, andindependently opened bank accounts, paid taxes, and made financial decisions independently. The controllingshareholder does not intervene in the financial management of the company.

III. Competition in the same industry

□Applicable ?N/A

IV. Annual general meeting and extraordinary general meeting held during the reportingperiod

1. Shareholders' general meeting during the reporting period

informationdisclosure media(AnnouncementNo.: 2024-027)

informationdisclosure media(AnnouncementNo.: 2024-027)

2. Preference shareholders with restored voting rights request to convene an extraordinary general meeting

□Applicable ?N/A

V. Directors, Supervisors and Senior Managers

1. Basic situation

Name

ZhengBujun

Jin Yaguang

LuHongzhen

During the reporting period, is there any resignation of directors and supervisors and dismissal of senior managers during their term of office？

?Applicable □N/ADuring the reporting period, Mr. Zhao Shuming resigned from the position as Independent Director uponexpiration of his term; Mr. Chen Taiqing resigned from the position as Chairman of the Supervisory Board uponexpiration of his term; Ms. Xu Lili and Mr. Chen Fuya resigned from the position as Supervisors upon expiration oftheir terms. Mr. Wang Kai resigned from his position as Director due to job reassignment, and Mr. Xu Youhengresigned from his position as Supervisor due to job reassignment.Changes in directors, supervisors and senior management of the company

?Applicable □N/A

2. Situation of Employers

The professional background, main work experience and main responsibilities of the current directors, supervisorsand senior management of the company

(1) Directors

Mr. Zhang Liandong, born in September 1968, master degree from the Party School, deputy to the NationalPeople's Congress. He successively served as director of the Management Committee of Sucheng District EconomicDevelopment Zone, Deputy Director of the Sucheng District, member of the Standing Committee of the SuchengDistrict Committee, secretary of the Party Working Committee of Sucheng Economic Development Zone, deputysecretary-general of the Suqian Municipal Government, director of the Suqian City Administration Bureau, deputysecretary-general of Suqian Municipal Government (section level), secretary of the Party and Working Committeeof Suqian City's Yanghe New District, chairman of Sujiu Group Trading Co., Ltd. He is currently the company’s theParty secretary and chairman of the board of directors, chairman of Jiangsu Shuanggou Wine Co., Ltd.

Mr. Zhong Yu, born in May 1964, master degree, Chinese Brewmaster, a master of Chinese liquor, a senior engineer,and a representative of the 13

th

and the 14

th

Jiangsu Provincial People's Congress. He successively served as thedirector of the technical department, the director of the environmental protection department, director of theProduction Technology Division and minister of the Production Technology Department, and the director of thetechnology center of Jiangsu Shuanggou Winery; the deputy chief engineer, assistant to the general manager,brewing director, assistant to the president, vice president, general manager of Siyang Co., Ltd. ; general managerof Yanghe Co., Ltd. He is currently the deputy secretary of the party committee, vice chairman and president ofthe company.

Mr. Yang Weiguo, born in February 1974, bachelor degree and master degree. He has served as StandingCommittee member of Siyang County Party Committee, Minister of Publicity Department, member of Party

Leading Group of County government, deputy county head, deputy secretary-general of Suqian Municipal PartyCommittee, deputy director of Suqian Reform Office, Party Secretary and President of Suqian Daily. He iscurrently secretary of the party committee and chairman of Suqian Industrial Development Group Co., LTD.,chairman of Jiangsu Yanghe Group Co., LTD., and chairman of Jiangsu Shuanggou Group Co., LTD.

Mr. Xu Jun, born in April 1976,holds a master's degree and is a Certified Intermediate Economist. He previouslyserved as Assistant General Manager and Deputy General Manager (deputy division level) of Shanghai TobaccoTrade Center Co., Ltd. He is currently a Director of the Company. Deputy General Manager of Shanghai HaiyanLogistics Development Co., Ltd., and a Director of Shanghai Tobacco Group Huangpu Tobacco, Liquor & Sugar Co.,Ltd., Shanghai Tobacco Group Xuhui Tobacco, Liquor & Sugar Co., Ltd., Shanghai Tobacco Group MinhangTobacco, Liquor & Sugar Co., Ltd., and Shanghai Tobacco Group Fengxian Tobacco, Liquor & Sugar Co., Ltd.

Mr. Chen Jun, born in January 1976, is a graduate of the Party School with a master's degree and holds the titleof Senior Economist. He has served in various positions, including Deputy Director of the Accounting andAccounting Center of Suqian Finance Bureau, Vice President (Deputy Department-level) of the ChineseAccounting Correspondence College Suqian Branch, Director and Deputy Director of the Financial Work Office ofSuqian Municipal People's Government, Member of the Party Working Committee and Deputy Director (onsecondment) of the Management Committee of Suqian Economic and Technological Development Zone, DeputySecretary of the Party Working Committee. He served as Deputy Party Secretary, Director, and General Managerof Suqian Industrial Development Group Co., Ltd.; Director of Jiangsu Yanghe Group Co., Ltd. He serves as theDeputy Secretary of the Party Committee, Director, and Vice President of the company, as well as the Chairmanof Sujiu Group Trading Co., Ltd.

Mr. Zheng Bujun, born in January 1967, holds an MBA degree and the title of Senior Engineer. He has served asthe General Manager of Jiangsu Yanghe Group Co., Ltd., General Manager of Suqian State-owned AssetsInvestment Management Co., Ltd., member of the Party Committee, director, and Deputy General Manager ofJiangsu Shuanggou Liquor Co., Ltd., as well as the Director of the company. He has also held positions within thecompany including Director of Procurement and Logistics, President's Assistant, member of the Party Committee,and Vice President. Currently, he is a member of the Party Committee and Director of the company, as well asthe Party Secretary and General Manager of the company's Siyang Branch.

Mr. Dai Jianbing, born in September 1971, holds an associate degree. He has served in various positions,including Deputy Director of the Office of Jiangsu Yanghe Group Co., Ltd., Manager of the Suqian, Zhenjiang, andSuzhou Branches of Yanghe Sales Company, Deputy General Manager and General Manager of the East ChinaMarketing Center of Sujiu Group Trading Co., Ltd., Sales Director and General Manager of Jiangxi Region andSouthern Jiangsu Region, as well as Vice General Manager and General Manager of Shandong Region. Currently,he serves as a director of the company and Vice General Manager and General Manager of the Huan Su Regionof Sujiu Group Trading Co., Ltd.

Mr. Nie Yao, born in June 1977, holds a doctorate degree. He has served as a visiting scholar at the AdvancedBiotechnology and Medical Center of Rutgers University (State University of New Jersey), an associate professor atthe School of Bioengineering, Jiangnan University, and an independent director of Jinhui Liquor Co., Ltd. He iscurrently an independent director of the company, subdean and professor of the School of Bioengineering,Jiangnan University.

Mr. Lu Guoping, born in March 1960, bachelor degree, professor of accounting, CPA outstanding educator inJiangsu Province. He has successively served as lecturer, associate professor, director of teaching and researchsection of the School of Engineering of Nanjing Agricultural University.He has been an independent director oflisted companies such as Anhui Shenjian New Materials Co., Ltd., Langbo Sealing Technologies Co., Ltd., HuaxinNew Material Co., Ltd., Research Institute of Building Sciences Group Co., Ltd., and a director of Lamborghini.Currently he is the independent director of Yanghe Brewery, the professor and master tutor of the National WealthAuditing College of Nanjing Audit University, the lead Instructor of the National First-class Undergraduate Course(Online and Blended) "Advanced Financial Accounting" and the national first-class Head of the undergraduatecourse "Advanced Financial Accounting", independent director of Baosheng Technology Innovation Co. , Ltd. andSuzhou Lianxun Instrument Co. , Ltd.

Mr. Mao Lingxiao, born in January 1964, bachelor’s degree, first-class lawyer (Senior professional title). He hasserved as a staff member of the Jiangsu Provincial Department of Justice, a full-time lawyer of Jiangsu InternationalEconomic and Trade Law Firm, a senior partner and director of Jiangsu Lingxiao Law Firm, a senior partner ofJiangsu Jinding Law Firm, and a senior partner and director of Jiangsu Tianzhe Law Firm. Full-time lawyer, seniorpartner and executive director of Beijing Zhongyin (Nanjing) Law Firm. He is currently an independent director ofthe company, Independent Director of Hicin Pharmaceutical Co., Ltd., a full-time lawyer, senior partner andchairman of the partner meeting of Beijing Haotian (Nanjing) Law Firm.

Mr. Hong Jinming, born in October 1981, holds a Ph.D. and is an associate researcher and doctoral supervisor. Hehas served as Credit Manager at the Beijing Development Zone Branch of Agricultural Bank of China Limited,Product Manager at the Planning and Accounting Department of the Beijing Branch, and Senior Specialist (ChiefClerk) at the Head Office of Agricultural Bank of China. Currently, he serves as an independent director of thecompany, Wuzhou Specialty Paper Co., Ltd., Deputy Director of the Financial and Accounting Research Center atthe Chinese Academy of Fiscal Sciences, and an independent director of companies such as Aibru and EarthViewImage Co.,Ltd.

(2) Supervisors

Ms. Lin Qing, born in May 1975, master's degree, senior accountant and certified public accountant. Shesuccessively served as deputy director of the Enterprise Division of Suqian Finance Bureau of Jiangsu Province,assistant to the director of the Municipal Price Bureau, member and deputy director of the Suqian Party Committeeof the Municipal Development and Reform Commission, member of the Standing Committee of the PartyCommittee of the company, vice president of the company, and head of the internal audit of the company. She iscurrently a member of the Standing Committee of the company's party committee, vice chairman of Sujiu GroupTrading Co., Ltd.

Mr. Ma Wenxiang, born in September 1977, holds a bachelor's degree and is a junior economist. He has servedas an investment manager at Shanghai Jiangju Investment Company, officer at the Asset Department and DeputyDirector of the General Office at Shanghai Ruitai Investment Development Company, Director of the PartyCommittee Office and Director of the Party Work Department at Shanghai Sugar, Tobacco (Group) Co., Ltd.,committee member and secretary of the committee at Shanghai Jieqiang Tobacco, Sugar, and Liquor (Group) Co.,Ltd., as well as Deputy General Manager. Currently, he serves as a supervisor of the company, Deputy Secretaryof the Party Committee and General Manager of Shanghai Jieqiang Tobacco, Sugar, and Liquor (Group) Co., Ltd.,and a director of Shanghai Haiyan Logistics Development Co., Ltd.

Mr. Jin Yaguang, born in July 1976, holds a bachelor's degree. He has served as the Director of the Office andmember of the Party Committee at Jiangsu Shuanggou Liquor Co., Ltd., Director of the Office, Director of theParty Committee Office, and Minister of the Organization Department at the company, Administrative Directorand Director of the Office at the Yanghe Branch of the company, General Manager of the Procurement andLogistics Center, and General Manager of the Supply Chain Management Center. Currently, he serves as asupervisor of the company and General Manager of the North China Region and Beijing Branch of Sujiu GroupTrading Co., Ltd.

Mr. Huang Jinhua, born in September 1970, holds a secondary school education. He has served as the head ofthe General Dispatching Office, Director of the Equipment Department, and Deputy Director of the ThermalPower Plant at Jiangsu Yanghe Group Co., Ltd., Manager of the Xuzhou Branch and Yancheng Branch at YangheSales Company, General Manager of the Yanlian Huaitong Region, Tianjin-Hebei Region, Hebei Region, SutongRegion, and Sales Director at Sujiu Group Trading Co., Ltd., Deputy General Manager and General Manager ofShuanggou Shandong Sales Co., Ltd., as well as General Manager of the Xuzhou Division at Jiangsu ShuanggouLiquor Sales Co., Ltd. Currently, he serves as Currently a supervisor and marketing director of the Company,Deputy General Manager and General Manager of the Xuzhou Division at Jiangsu Shuanggou Liquor Sales Co.,Ltd.

(3) Executives

Mr. Zhong Yu, President of the company, the same resume as above.

Mr. Chen Jun, Vice president of the company, the same resume as above.

Mr. Yin Qiuming, born in July 1972, college's degree, auditor. He successively served as Assistant to the Directorof Audit, Director of Audit, Deputy Secretary of the Disciplinary Committee of Jiangsu Yanghe Group Co., Ltd.,Director of the Company's Management Department, Deputy General Manager of Jiangsu Yanghe Sales Co., Ltd.,Deputy General Manager, Party Committee Member, Financial Officer of Jiangsu Yanghe Wine Co., Ltd. Minister,company supervisor, deputy secretary of the Disciplinary Committee, deputy general manager of the company'sYanghe branch, finished product scheduling director, financial director, financial director, and general manager ofthe financial center. He is currently the vice president and CFO of the company.

Mr. Li Yuling, born in December 1970, master's degree in MBA from Nanjing University, intermediate economist.He successively served as the assistant to the director of the supply department, the assistant to the director ofthe finance department, the deputy chief dispatcher of the general dispatching room, the director of the supplydepartment, the director of the company's supply department, the assistant to the general manager of YangheBranch, the director of procurement and logistics, and the director of supply chain management in Jiangsu YangheGroup Co., Ltd. , Deputy Director and Office Director of the Procurement and Supply Logistics Center. He is currentlythe vice president of the company, secretary of the party committee and general manager of Jiangsu ShuanggouWine Co., Ltd.

Mr. Fan Xiaolu, born in November 1984, holds a master's degree. He has served as a director, Deputy GeneralManager, and member of the Party Committee at Suqian Industrial Development Group Co., Ltd., a director atJiangsu Yanghe Group Co., Ltd., Chairman and General Manager at Jiangsu Huaihai Finance Leasing Co., Ltd., adirector at Suqian Financial Asset Management Co., Ltd., an executive director and General Manager at SuqianScience and Technology Venture Investment Co., Ltd., General Manager at Jiangsu Shuanggou Liquor Sales Co., Ltd.,

and Assistant to the President of the company. Currently, he serves as Vice President of the company, GeneralManager of Jiangsu Shuanggou Liquor Co., Ltd., Executive Director and Party Branch Secretary of JiangsuShuanggou Liquor Sales Co., Ltd.

Mr. Chen Taisong, born in January 1968, master’s degree. He has successively served as a member and secretaryof the Legislative Bureau of Siyang County Government, Secretary of the Office of the Siyang County GovernmentOffice, Deputy Section Chief, Section Chief, Director Assistant, Deputy Director, Siyang County Chief of ChuanchengTown, Secretary of the Party Committee, Jiangsu Sujiu Industrial Co., Ltd. Deputy Secretary, Secretary of theDiscipline Inspection Commission, Chairman of the Supervisory Board, Deputy Secretary of the DisciplineInspection Commission, Standing Committee of the Party Committee and Organization Minister of the company,Deputy Secretary of the Party Committee of Sujiu Group Trading Co., Ltd., Secretary of the Discipline InspectionCommission, and Chairman of the Supervisory Board. He is currently a member of the Standing Committee of theParty Committee, Supervisor, Chairman of Guijiu Co., Ltd.

Mr. Zhang Xueqian, born in November 1969, holds a bachelor's degree. He has served as the Deputy Director ofthe Sales Department at Jiangsu Yanghe Group Co., Ltd., Deputy Director of the Product Department at JiangsuYanghe Liquor Co., Ltd., Marketing Department Director, Product Department Manager, Manager of StrategicResearch Department, and Vice President of the company at Jiangsu Yanghe Sales Co., Ltd. He also held positionssuch as Party Committee Member and Vice President at Sujiu Group Trading Co., Ltd., General Manager ofJiangsu Shuanggou Liquor Sales Co., Ltd., and Assistant to the President. Currently, he serves as Vice Presidentand Chief Product Officer of the company, Vice President of Sujiu Group Trading Co., Ltd., and Chairman of TibetEarth Third Pole Liquor Co., Ltd.

Ms. Song Zhimin, born in October 1975, holds a master's degree. She has worked as a Regional Manager in theSales Department, Deputy Office Director, and Marketing Department Director at Jiangsu Yanghe Group Co., Ltd.She also served as the Head of the Management Department, Assistant General Manager at Jiangsu YangheLiquor Co., Ltd., Deputy General Manager of the Yanghe Branch of the company, Party Committee Member,Assistant to the President, Director of Management, Director of Strategic Research, and General Manager ofManagement Center and Strategic Research Center. Currently, she is Vice President and Director of Managementof the company and General Manager of the Yanghe Branch.

Ms. Lu Hongzhen, born in October 1978, holds a bachelor's degree, is a member of the China Democratic League,and has obtained the Board Secretary Qualification Certificate issued by the Shenzhen Stock Exchange. She hasserved as the Secretary of the Office, Deputy Minister of the Comprehensive Department, Deputy Director of theOffice, Director of the Securities Department, Securities Affairs Representative, and General Manager of theHuman Resources Center at Yanghe Co., Ltd. Currently, she is the Secretary of the Board of Directors and DeputyDirector of Human Resources of the company.

Positions in shareholder corporations

?Applicable □N/A

Yang Weiguo

Employments in other corporations

?Applicable □N/A

Ltd.

Penalties imposed by securities regulators on current and outgoing directors, supervisors and senior managers ofthe company in the past three years

□Applicable ?N/A

3. Remuneration of directors, supervisors and senior managers

Decision-making procedures, basis for determination and actual payment of remuneration for directors,supervisors and senior managers

Decision procedure: The remuneration shall be implemented based on the cases “Adjusting the Allowance ofIndependent Directors” approved by the Company's 2020 Annual General Meeting of Shareholders and“Compensation and Assessment Management Measures for Members of Management Team” approved by theCompany's 2021 Annual General Meeting of Shareholders.

Determination basis: According to the company's current business situation, reference to the regional economiclevel, industry and market level.Actual payment: Paid on time according to the corporate's performance and compensation institutions.

Remuneration of directors, supervisors and senior managers during the reporting period

Unit: CNY10, 000

Chen Taisong

VI. Directors' performance of duties during the reporting period

1. The Board of Directors during the Reporting Period

the company in thestatutory informationdisclosure media(Announcement No.2024-004).

the Sixth Session of theeighth Board ofDirectors" disclosed bythe company in thestatutory informationdisclosure media(Announcement No.2024-038).

2. Attendance of Directors at Board of Directors and General Meetings of Shareholders

Explanation of two consecutive absences from attending the board of directors in person

N/A

3. Circumstances where directors raise objections to company-related matters

Were there any objections on related issues of the Company from directors?

□Yes ?No

During the reporting period, there is no objections on related issues of the Company from directors.

4. Other instructions for directors to perform their duties

Were there any suggestions from directors accepted by the Company??Yes ?No

The statement on whether the director's recommendation to the company's proposal has been adopted or not

During the reporting period, the directors of the Company in accordance with the relevant requirements of “theCompany Law”, “the Securities Law”, “the Articles of Association” and other laws, regulations and rules, carriedout various work diligently and responsibly, provided reasonable opinions and suggestions for the company'sbusiness decisions, and effectively safeguarded the interests of the company and all shareholders.VII. The special committees under the board of directors during the reporting period

the Head of theInternal AuditDepartment ofthe Company","Proposal on theAppointment ofthe SecuritiesAffairsRepresentativeof the Company"

Jinming

trainingprograms tocontinuouslyimprovetheir overallcompetenceandprofessionalcapabilities.

VIII. Performance of Duties by the Supervisory Committee

Were there any risks to the Company identified by Board of Supervisors when performing its duties during thereporting period?

□Yes ?No

The Supervisory Committee has no objection to the supervision matters during the reporting period.IX. Staff in the Company

1. Statistics of Employees, Professional Structure of the Staff, and Educational Background

Master

2. Salary Policy

The salary of the company's employees is composed of basic salary, performance salary and profit incrementsharing award. All departments of the company implement a post-self-organization mechanism, and revised the"Administrative Measures for Post-Self-organization" to further improve the quantity, quality, efficiency andeconomic value of work. It has established quantifiable and assessable indicators to encourage employees to bespontaneous, improve their work efficiency, and improve the company's management level in order to achieve awin-win situation between the company and its employees.

3. Training Program

The company adheres to the incentive philosophy of "encouraging innovators, urging laggards, and promoting hardworkers." In 2024, the Company continued to strengthen the "Leadership Academy, Marketing Academy, CustomerAcademy, and Craftsman Academy," with the aim of broadening the vision of senior management, enhancing theexecution capability of middle management, and improving the skills of frontline staff, thereby deepening thedevelopment of the leadership team. Guided by the overarching principle of "putting the market at the center,empowering marketing with full strength, and contributing to overall development," the Company activelypromoted the cultivation of market-oriented talent. Through the approach of "establishing mechanisms, focusingon training, building platforms, and promoting growth," targeted support was provided to empower distributors.With the goal of developing a knowledgeable, skilled, and innovative workforce, the Company continuouslyoptimized the structure and competence levels of technical personnel. Throughout the year, a total of 144,600employees participated in training sessions, further reinforcing the Company's talent development efforts.

4. Outsourcing of labor service

□Applicable ?N/A

X. Profit Distribution and Capitalization of Capital Reserves

Profit distribution policy in the reporting period, especially the formulation, implementation and adjustmentof cash dividend policy?Applicable □N/A

On June 7, 2024, the Company held the 2023 Annual General Meeting of Shareholders and reviewed and approvedthe Company’s 2023 equity distribution plan. The specific plan is: based on the existing total share capital of1,506,445,074 shares, the Company will distribute a cash dividend of CNY 46.60 (tax included) per 10 shares to allshareholders using undistributed profits; no bonus shares will be issued, and there will be no conversion of capitalreserves into share capital.

The Company implements the 2023 annual equity distribution, with June 25, 2024 as the equity registration dateand June 26, 2024 as the ex-rights and ex-dividend date. Based on the current total share capital of 1,506,445,074shares, a cash dividend of CNY 46.60 (tax included) will be distributed for every 10 shares to all shareholders, witha total cash dividend distribution of CNY 7,020,034,044.84 (tax included).

The company was profitable during the reporting period and the parent company's profit available fordistribution to shareholders was positive, but no cash dividend distribution plan was proposed

□Applicable ?N/A

Profit distribution and conversion of capital reserve into paid-in capital during the reporting period?Applicable □N/A

end of the year amounted to CNY 31,867,283,870.96.In line with the principle of ensuring the long-termdevelopment of the Company while providing reasonable returns to shareholders, the Company plans toimplement the 2024 profit distribution.The 2024 profit distribution plan is as follows: based on the existing total share capital of 1,506,445,074shares, the Company proposes to distribute a cash dividend of CNY 23.17 (tax included) per 10 shares to allshareholders, amounting to a total cash dividend of CNY 3,490,433,236.45 (tax included), without bonusshares or capitalization. In the event of any changes in the total share capital before the equity registrationdate for the implementation of the equity distribution, the distribution ratio will be adjusted in accordancewith the principle of maintaining the total distribution amount unchanged.

end of the year amounted to CNY 31,867,283,870.96.In line with the principle of ensuring the long-termdevelopment of the Company while providing reasonable returns to shareholders, the Company plans toimplement the 2024 profit distribution.The 2024 profit distribution plan is as follows: based on the existing total share capital of 1,506,445,074shares, the Company proposes to distribute a cash dividend of CNY 23.17 (tax included) per 10 shares to allshareholders, amounting to a total cash dividend of CNY 3,490,433,236.45 (tax included), without bonusshares or capitalization. In the event of any changes in the total share capital before the equity registrationdate for the implementation of the equity distribution, the distribution ratio will be adjusted in accordancewith the principle of maintaining the total distribution amount unchanged.

XI. Implementation of company equity incentive plans, employee stock ownership plans orother employee incentives

?Applicable □N/A

1. Equity incentive

N/AEquity incentives obtained by the directors and senior management of the company

□Applicable ?N/A

Evaluation mechanism and incentives for senior managers

The company continues to establish and improve the assessment and traction mechanism based on businessperformance and the compensation and incentive mechanism for management team members oriented by valuecontribution that are compatible with the market economy system and modern enterprise system. The 2021Annual General Meeting of shareholders of the Company reviewed and approved the “Management Measures forCompensation and Assessment of Management Team Member”, which stipulates that the annual remunerationof the members of the management team of the Company consists of basic annual salary, performance-basedannual salary, tenure incentive and other income, the basic annual salary is paid monthly, the performance-basedannual salary is implemented according to the annual performance appraisal results, and the tenure incentive islinked to the operating performance appraisal during the term of office.

2. Implementation of employee stock ownership plans

?Applicable □N/A

All valid employee stock ownership plans during the reporting period

independentdirectors),supervisors,seniormanagementpersonnel, andmiddle-leveland abovepersonnel andcore backboneswho aredetermined bythe board ofdirectors of thecompany andwholly-ownedsubsidiaries toplay animportant rolein thecompany'soverallperformanceand mediumand long-termdevelopment

Shareholdings of Directors, Supervisors and Senior Management in the Employee Stock Ownership Plan duringthe Reporting Period

expires)

expires)

Changes in asset management institutions during the reporting period

□Applicable ?N/A

Changes in equity due to disposal of shares by holders during the reporting period?Applicable □N/ADuring the reporting period, the Company's First Phase Core Employee Shareholding Plan reduced its holdingsof the Company’s shares by 2,739,303 shares through centralized bidding and block trading. As of December31, 2024, the First Phase Core Employee Shareholding Plan held 6,379,081 shares of the Company, accountingfor 0.42% of the Company’s total share capital.The exercise of shareholders' rights during the reporting periodN/AOther relevant situations and explanations of the employee stock ownership plan during the reporting period

□Applicable ?N/A

Members of Employee Stock Ownership Plan Management Committee Change

□Applicable ?N/A

The financial impact of the employee stock ownership plan on the listed company during the reporting periodand related accounting treatment

□Applicable ?N/A

Termination of employee stock ownership plans during the reporting period

□Applicable ?N/A

Other instructions: As approved at the fourth meeting of the Eighth Session of the Board of Directors, theCompany agreed to extend the duration of the First Phase Core Employee Shareholding Plan to September 10,2025.

3. Other employee incentives

□Applicable ?N/A

XII. Construction and implementation of internal control system during the reporting period

1. Construction and implementation of internal control

(1)Internal control system construction

a) Optimize the internal control environment of the enterprise.i. Standardize the establishment of the organizational structure. According to the relevant laws and regulations ofChina, clarify the responsibilities, authority, conditions, rules of procedure and work procedures of the board ofdirectors, board of supervisors and managers to ensure that decision-making, execution and supervision areseparated from each other and form checks and balances. Clarify the internal division of labor of the board ofdirectors, and set up special committees including audit committee, remuneration and appraisal committee,strategy committee, nomination committee.ii. Improve human resources policies. ① Enhance the employee development mechanism. Candidates mustundergo a rigorous assessment process before being hired. The Company has established a comprehensive system

covering employee training, compensation, performance evaluation, and promotion. For employees in differentpositions, the Company provides pathways to improve their overall competence, aiming to cultivate high-qualitytalent.② Establish and improve the incentive mechanism. On the basis of ensuring fairness and relative stability inincentives and constraints, the Company implements shareholding plans and spontaneous incentive mechanismsto stimulate employees’ initiative, fully tap their potential, and safeguard corporate interests.iii. Foster a healthy corporate culture. With a culture of aspiration at its core, the Company adheres to thedevelopment philosophy of "being a leader in the industry and serving the country, the people, and the localcommunity." It remains committed to a positive cultural direction, continuously gathering momentum andintegrating strong cultural energy into all aspects of production, operations, and management. This helps inspirethe enthusiasm, initiative, and creativity of all employees, using cultural soft power to drive corporatedevelopment.

b) Establish a risk assessment firewall. To effectively control various business risks, the Company identifies potentialrisks in areas such as production safety, food safety, behavioral safety, financial safety, and environmental safety.Full-process risk control measures have been established across key business segments. The Company has alsoformulated corresponding risk control systems, including the Risk and Opportunity Management Measures, theRisk Management Accountability System, the Hazard Identification and Risk Assessment Management Measures,and the Environmental Factor Identification, Evaluation and Update Management Measures. It regularly inspectsand evaluates the effectiveness and appropriateness of internal control design and operation, promptly identifyinginstitutional barriers that hinder deepened reform and risk prevention. These efforts promote the establishmentof a sound system for risk prevention, early warning, response, and accountability, further reinforcing the crucialrole of both "curing existing issues" and "preventing potential risks."

c) Implement effective internal control activities. Based on the level of risk assessment, the Company carries outinternal control activities such as division of responsibilities control, authorization control, review and approvalcontrol, budget control, and performance evaluation control. Tailored management systems, standardizedoperating procedures, and key control points are developed according to the specific characteristics of eachbusiness. Corresponding task assignments, responsibilities, and authority are defined, along with clear operatingprocedures, handling protocols, disciplinary rules, and inspection standards. This ensures a coordinated balancebetween duties, responsibilities, authority, and benefits, with subordinates subject to supervision by superiors,and superiors constrained by subordinates. These measures effectively safeguard the interests of the enterpriseand ensure the stable and orderly advancement of various operations.

d) Improve the information and communication mechanism. The company establishes the technical platform ofthe information system, establishes a sensitive information collection and feedback system, realizes the upward,parallel or downward flow and communication of various information within the enterprise, and implements thewhole process of the entire internal control information from production, release to feedback modernmanagement.

e) The Board of Directors of the Company has established an Audit Committee, which is responsible for regularlyreviewing the audit work plan, supervising the completion of the annual audit, and examining the Company’sinternal control system and financial statements. The internal audit department reports the annual audit work toboth the Party Committee and the Board of Directors.The Company adheres to comprehensive audit coverage,focusing on key areas of its operations. Audits are conducted across all subsidiaries and functional departments,

targeting critical areas, key departments, and sensitive positions. The Company strengthens supervision over majorfunds, key projects, significant assets, and the economic responsibilities of personnel in important positions.TheCompany also reinforces the coordination between disciplinary inspection and audit functions, ensuring thesharing of critical information and joint review of significant matters. This enables internal audit to fully play itssupervisory role in standardizing management, preventing risks, and improving corporate governance. It enhanceschecks and balances, contributes to the development of an anti-corruption and prevention system, and promotesthe efficient and orderly operation of the enterprise.

(2)Internal control system implementation

The Company has established a comprehensive internal control system covering areas such as financialmanagement, human resources management, risk management, and information technology management.Business operations are conducted in accordance with standardized systems and procedures. The Audit Committeeof the Board of Directors conducts comprehensive reviews and supervision of financial reporting, the effectivenessof internal controls, and the rationality and effectiveness of corporate governance. The Company performs annualself-assessments of internal controls. In response to internal and external developments and business needs,relevant internal control systems are continuously optimized. In 2024, the Company updated 63 internal controlpolicies, abolished 1, and introduced 8 new ones. The Company's management departments conduct regularinspections to ensure long-term compliance with internal policies, and internal audit conducts routine oversight,achieving full audit coverage across all subsidiaries and functional departments.

2. Details of major deficiencies in internal control discovered during the reporting period

□Yes ?No

XIII. The company's management and control of subsidiaries during the reporting period

XIV. Internal control self-assessment report or internal control audit report

1. Self-evaluation Report on Internal Control

The ratio of the total assets of thecompany included in theevaluation scope to the totalassets of the company'sconsolidated financial statements

operating income < misstatement≤ 3% of total operating income;3% of total profit < misstatement≤ 5% of total profit; 1% of totalassets < misstatement ≤ 2% oftotal assets.General defects: misstatement ≤1% of total operating income;misstatement ≤ 3% of total profit;misstatement ≤ 1% of totalassets.

2. Internal Control Audit Report

?Applicable □N/A

Whether the accounting firm issued an internal control audit report with a non-standard opinion

□Yes ?No

Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluationreport of the board of directors

?Yes □No

XV. Special Rectification Actions for Self-inspected Problems of Listed Companies

Completed.

Section V Environmental and Social ResponsibilityI. Significant environmental issues

Whether the listed company and its subsidiaries belong to the key pollutant discharge companies announced bythe environmental protection department?Yes □No

Environmental protection related policies and industry standardsThe company strictly complies with environmental protection related laws and regulations and industry standards.

Relevant laws and regulations: “Environmental Protection Law of the People's Republic of China”, “Law of thePeople's Republic of China on Water Pollution Prevention and Control”, “Law of the People's Republic of China onthe Prevention and Control of Environmental Pollution by Solid Waste”, “Law of the People's Republic of China onPrevention and Control of Air Pollution”, “Law of the People's Republic of China on the Prevention of NoisePollution”,”Law of the People's Republic of China on Prevention and Control of Soil Pollution”, “Regulations ondischarge permit Administration”, “Regulations on the Prevention and Control of Environmental Pollution byIndustrial Solid Wastes in Suqian City”, etc; Relevant industry standards: “Discharge standard for water pollutantsof fermented alcohol and liquor industry” （GB27631-2011） and its amendment list, “Discharge standard of airpollutants from boilers” （DB32/ 4385—2022), “Comprehensive Emission Standards for Air Pollutants”(DB324041-2021), and “Industrial enterprise boundary environmental noise emission standard” (GB12348-2008)and so on.

Environmental protection administrative permit

The company and its subsidiaries have complete materials such as environmental impact reports and pollutantdischarge permits for construction projects. Among them:

Jiangsu Yanghe Distillery Co., Ltd.：On October 31, 2024, the Company applied to Suqian Bureau of EcologicalEnvironment for the “Pollutant Discharge Permit of Yanghe Branch of Yanghe Stock Co., LTD.”, valid from October31, 2024 to October 30, 2029.Jiangsu Shuanggou Wine Co., Ltd.：The Company has obtained “Jiangsu Provincial Pollutant Discharge License”issued by Suqian Municipal Bureau of Ecological Environment on August 12, 2021, valid from August 12, 2021 toAugust 11, 2026.Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch：On November 28, 2024, the Company obtained the “PollutantDischarge License of Siyang Branch of Yanghe Corporation” issued by Suqian Municipal Bureau of EcologicalEnvironment. The license is valid from November 28, 2024 to November 27, 2029.Guizhou Guijiu Group Co., Ltd.：The company applied for the renewal of the pollutant discharge permit inNovember 30 2022, which has been approved by Guiyang Bureau of Ecological Environment and is valid fromOctober 18, 2022 to October 17, 2027.

Industrial discharge standards and details of the discharge of pollutants involved in production and businessactivities

nameorsubsidiaryname

n

Treatments of pollutants

Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch：The sewage treatment station in use was completed in 2012,with a total investment of CNY 96 million, covering an area of 19,000 square meters, with a designed sewagetreatment capacity of 10,000 tons per day. The sewage treatment process adopts physical treatment method +chemical treatment method + anaerobic biological treatment method + aerobic biological treatment method inorder to reach the treatment of high-concentration wastewater of 250 tons per hour. The emission implementsthe "Fermentation Alcohol and Liquor Industry Pollutant Emission Standard (GB27631-2011)" and the modified listof indirect emission protocol standards. In 2023, two new anaerobic towers were built to improve the efficiencyof anaerobic treatment. In 2024, 1.8735 million tons of wastewater were treated. COD reduction was 16,967 tons,ammonia nitrogen reduction was 191 tons, total nitrogen reduction was 321 tons, total phosphorus reduction was184 tons. The emission concentration of all pollutants is lower than the national emission standard. There is abiogas boiler room equipped with 9 biogas boilers, their production capacity reaches 32 tons per hour, and thebiogas produced by anaerobic fermentation of sewage treatment was all used for biogas boiler combustion. Thesteam output was 147,300 tons in 2024. The distiller’s grains were recycled and centrally disposed of, with autilization rate of 100%, and the sludge was mainly recycled by qualified third-party units.

Jiangsu Shuanggou Wine Co., Ltd.：The sewage treatment station in use was completed in 2013, with a totalinvestment of CNY 42.5 million, covering an area of 15,000 square meters, with a designed sewage treatmentcapacity of 5,400 tons per day. Sewage treatment adopts anaerobic tower + UASB + AAO + secondarysedimentation tank + phosphorus removal tank treatment process, in accordance with the revised list of“Fermentation Alcohol and Liquor Industrial Pollutant Discharge Standard (GB27631-2011)” and “ShuanggouTownship Wastewater Treatment Plant takeover standards”. In 2024, 710,700 tons of wastewater were treated.COD reduction was 6,589 tons, ammonia nitrogen reduction was 105.84 tons, total phosphorus reduction was

59.07 tons, total nitrogen reduction was 163.15 tons. The emission concentration of all pollutants is lower thanthe national emission standard. There is a biogas boiler room equipped with 3 biogas boilers, and the biogasproduced by anaerobic fermentation of sewage treatment was all used for biogas boiler combustion. The steamproduced by the biogas boiler was used for brewing production, and the steam output was 33,800 tons in 2024.The sludge and vinasse are mainly recycled by qualified third-party units.

Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch：The sewage treatment station in use was completed in 2015,with a total investment of CNY 50 million, covering an area of about 15,000 square meters, with a designed sewagetreatment capacity of 6,000 tons per day. The sewage treatment process adopts EGSB + AAO + advanced treatmenttechnology, and implements the indirect discharge agreement standard of the revised list of "Fermentation Alcoholand Liquor Industry Pollutant Discharge Standard (GB27631-2011)". In 2024, 850,900 tons of wastewater weretreated. COD reduction was 18,909 tons, ammonia nitrogen reduction was 199 tons, total nitrogen reduction was

429 tons, total phosphorus reduction was 177 tons. The emission concentration of all pollutants is lower than thenational emission standard. There is a biogas boiler room equipped with 6 biogas boilers, and the biogas producedby anaerobic fermentation of sewage treatment was all collected and used for biogas boiler combustion. The steamproduced by the biogas boiler was used for brewing production, and the steam output was 92,900 tons in 2024.The sludge and vinasse are mainly recycled by qualified third-party units.

Guizhou Guijiu Group Co., Ltd.：The sewage treatment station in use was completed in 2021, with a totalinvestment of CNY 18.5 million, covering an area of about 1,980 square meters, with a designed sewage treatmentcapacity of 700 tons per day. The wastewater treatment process adopts pretreatment + anaerobic system + primarybiochemical system + secondary biochemical system + MBR membrane/ozone + phosphorus removalsedimentation system, and the wastewater discharge complies with the direct discharge standard in Table 2 of the"Discharge Standard for Water Pollutants in Fermented Alcohol and Liquor Industry (GB27631-2011)". In 2024,96,000 tons of wastewater were treated. COD reduction was 273.7 tons, ammonia nitrogen reduction was 8.16tons, total nitrogen reduction was 14.2 tons, total phosphorus reduction was 4.19 tons. The emissionconcentration of all pollutants is lower than the national emission standard. The boilers used are gas-fired boilerswith natural gas as fuel, and the exhaust gas is directly discharged, complying with the "Emission Standard of AirPollutants for Boilers (GB13271-2014)" Table 2 for gas-fired boilers with standard limit emissions. The sludge ismainly recycled by qualified third-party units.

Emergency plan for environmental emergenciesThe company and its subsidiaries have formulated contingency plans for environmental emergencies. The companyhas filed with the Bureau of Ecological Environment of Suqian City; Shuanggou Wine has filed with the SihongEcological Environment Bureau of Suqian City; the company’s Siyang Branch has filed with Siyang County EcologicalEnvironment Bureau; and Guijiu Company has filed with the Guiyang Environmental Emergency Response Center.

The company and its branches and subsidiaries actively organize employees to train and learn the plan, andregularly carry out environmental emergency plan drills, to improve the environmental protection awareness andemergency handling ability of all staff.

Environmental Self-Monitoring Program

The company and its subsidiaries have completed self-monitoring plans

Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch COD, ammonia nitrogen, total nitrogen, total phosphorus, andpH online monitoring instruments have been installed and are connected to the provincial and municipal datamonitoring platforms. The sewage treatment station is equipped with dedicated personnel for sewage testing andanalysis. Daily manual sampling and testing are conducted for COD, ammonia nitrogen, total nitrogen, totalphosphorus, and pH in the discharged wastewater, with records maintained. A qualified third-party organization isentrusted to regularly sample and test the company’s wastewater. The environmental self-monitoring programhas been filed with the Jiangsu Province self-monitoring information release platform for key monitoringenterprises.

Jiangsu Shuanggou Wine Co., Ltd. COD, ammonia nitrogen, total nitrogen, total phosphorus, and pH online

monitoring instruments have been installed, and data is connected to the provincial and municipal data monitoringplatforms. The sewage treatment station has designated staff responsible for sewage testing and analysis,conducting daily manual sampling and testing of indicators such as COD, ammonia nitrogen, total nitrogen, totalphosphorus, and pH of the discharged sewage, with records maintained. Third-party qualified institutions areentrusted to periodically sample and test the company's sewage. The environmental self-monitoring program hasbeen filed with the Jiangsu Province self-monitoring information release platform for key monitoring enterprises.

Jiangsu Yanghe Distillery Co., Ltd. COD, ammonia nitrogen, total nitrogen, total phosphorus, and pH onlinemonitoring instruments have been installed, and the data is connected to the provincial and municipal datamonitoring platforms. The sewage treatment station has designated staff for sewage testing and analysis,conducting daily manual sampling and testing of indicators such as COD, ammonia nitrogen, total nitrogen, totalphosphorus, and pH in the discharged sewage, with records maintained. The company has entrusted a third-partyinstitution with sewage testing qualifications to periodically sample and test the company's sewage. Theenvironmental self-monitoring program has been filed with the Jiangsu Province self-monitoring informationrelease platform for key monitoring enterprises.

Guizhou Guijiu Group Co., Ltd. COD, ammonia nitrogen, total nitrogen, total phosphorus, pH, and SS onlineautomatic monitoring instruments have been installed, and nitrogen oxide online automatic monitoringinstruments have been installed for exhaust gases, with data connected to the provincial and municipal datamonitoring platforms. A third-party institution with testing qualifications has been entrusted to sample and testthe company's wastewater and exhaust gases monthly and quarterly, and generate testing reports. In November2024, the "Self-Monitoring Program" was updated and filed with the Xiuwen Branch of the Guiyang EcologicalEnvironment Bureau.

Input in environmental governance and protection and payment of environmental protection tax

The company, its branches and subsidiaries actively carry out environmental treatment and protection work. In2024, the total investment of sewage operation and environmental management is about CNY 52.03 million, andthe environmental protection tax is about CNY 0.9602 million.

Measures taken to reduce carbon emissions during the reporting period and their effects?Applicable □N/A

In 2024, the company fully implemented the "One-Two-Five-Seven" dual carbon strategy, carrying out extensivepractices in areas such as comprehensive energy efficiency enhancement, energy structure adjustment, and digitaltransformation for emission reduction, achieving remarkable results.

(1)Energy Saving and Emission Reduction: The company has continuously reduced energy consumption and carbonemissions, while improving quality and efficiency, through the development of an industry-leading smart energymanagement platform, the establishment of zero-carbon model workshops, and the application of newtechnologies such as workshop-level pressure regulation control. The total carbon emission reduction for the yearwas 43,000 tons. Green electricity consumption reached 32.85 million kWh, with a consumption rate increase to

33.21%, reducing carbon emissions by 18,300 tons. The comprehensive energy consumption per unit of brewingdecreased by 4% compared to the previous year, saving 82,000 tons of steam and reducing carbon emissions by

25,000 tons.

(2) Use of Clean Energy: The Yanghe subsidiary maximized the use of photovoltaic green electricity, consuming

17.72 million kWh of photovoltaic electricity, accounting for 31.71%, reducing carbon emissions by 24,900 tons.Shuanggou Wine Industry used 9.04 million kWh of photovoltaic electricity in 2024, while transformer upgradessaved 67,500 kWh of electricity, resulting in a reduction of carbon emissions by 5,071 tons. The Siyang subsidiary,in line with the overall layout of the plant's electrical circuits, completed small-scale energy storage constructionin 2024. By using the "off-peak storage and peak release" method, it was able to save 400 kWh per day, resultingin an annual cost saving of approximately CNY 72,000. Guijiu Company installed a 1.8MW distributed photovoltaicsystem, using 837,600 kWh of photovoltaic electricity and reducing carbon emissions by 477.66 tons.

(3) Optimizing Production Processes to Promote Energy Saving: The Yanghe subsidiary saved 45,200 tons of steamby installing a steam pressure stabilization and self-control system in the workshop and implementing full coverageof grain addition inside the fermenter under the same input conditions. Shuanggou Wine Industry saved 35,900tons of steam by re-insulating steam pipes, upgrading to constant-pressure steam supply, and replacing steamproduction with biogas boilers, resulting in a reduction of carbon emissions by 11,100 tons. Guijiu Company carriedout the recovery of residual steam in steam pipes, reducing natural gas consumption per unit of steam producedto 78.46m?, saving 34,400 cubic meters of natural gas throughout the year.

Administrative penalties for environmental issues during the reporting period

Other environmental information that should be disclosedNoneOther environmental protection related information

None

II. Social responsibility

The company has disclosed the “2024 Annual Social Responsibility Report and ESG Report” ，seewww.cninfo.com.cn for details.

III. The Achievements of Poverty Alleviation and Rural Revitalization

In 2024, the company actively integrated a sense of national responsibility into its development, adhering to theconcept of sustainable collaboration, implementing rural revitalization support and industrial revitalization, andactively participating in social welfare activities to fulfill its social responsibilities.

1. Village-Enterprise Joint Construction and New Trends: Partnered with Zhangdu Village, a key village for ruralrevitalization support, to continuously carry out the "Village-Enterprise Joint Construction? Unique New Trend -Weekend Hair Salon" initiative. Throughout the year, free haircut services were provided to 3,000 villagers,fostering local warmth and nurturing a civil, harmonious rural atmosphere. Donated organic fertilizers to

Zhangdu Village to support the sorghum base construction, enabling resource sharing and complementing eachother's strengths, thus helping farmers increase income and improve livelihoods.

2. Village Support and Public Welfare: Actively carried out paired assistance work in Lai'an and ShuangqiaoVillage in Siyang, visiting 104 low-income households during the Mid-Autumn Festival and Chinese New Year.They delivered supplies and care to people in need and carried out activities such as "Welcoming the New Year,Writing Spring Festival Couplets, and Sending Blessings," bringing a strong festive atmosphere to the village.

3. Promoting Regional Economic Development: Utilized the "Company + Base" management model to promotegreen, low-carbon circular agriculture. While ensuring production needs, the company also actively drove thescale development of rural industries, creating employment opportunities in surrounding areas and boosting thegrowth of upstream and downstream enterprises, thus contributing to regional economic development.

4. Charitable Contributions and Social Responsibility: Fulfilled the role of strategic partner for China’s aerospaceindustry, supporting the development of the aerospace sector. Donated charitable funds, established the "DreamEducation Development Fund," and contributed to the "My University, My Dream" scholarship program, lightingthe path of dreams for students. Actively participated in flood prevention and post-flood reconstruction efforts,helping communities recover. For three consecutive years, the company has been awarded the "Annual CharityEnterprise" honor by the China Charity Federation.

For further details, please refer to the company's disclosed "2024 Annual Environmental, Social, and CorporateGovernance Report."

Section VI Significant EventsI. Performance of commitments

1. Complete and incomplete commitments of the Company and its actual controller, shareholders, relatedparties, acquirers, and other related parties for the commitments by the end of the reporting period

?Applicable □N/A

engaged inthe above-mentionedbusiness. (2)If thecompanyviolates theabovecommitments, the joint-stockcompany hasthe right torequest thecompany toimmediatelyterminatethe businessof horizontalcompetitionandcompensatethe economicloss causedto the joint-stockcompany. Atthe sametime, thecompanyshall payliquidateddamages ofCNY 10million to thejoint-stockcompany. (3)The companypromises notto use itsstatus as thecontrollingshareholderin the joint-stockcompany todamage thelegitimaterights andinterests ofthe joint-stockcompany,othershareholdersof the joint-stockcompany and

creditors ofthe joint-stockcompany. ⑷This letter ofcommitmenttakes effectfrom thedate ofsigning andcannot berevokedwithout theconsent ofthe joint-stockcompany. 2.Commitmentto reducerelated-partytransactions:

The companywill strictlyabide by therequirementsof relevantlaws,regulationsandnormativedocumentssuch as theCompanyLaw, theSecuritiesLaw, and theCode ofCorporateGovernancefor ListedCompanies,and furtherreduce andstrictlyregulate therelationshipwith joint-stockcompanies.All kinds ofrelated-partytransactionsbetween thetwocompanies,to ensurethat thestatus of the

controllingshareholderand actualcontrollerwill not beused to harmthe interestsof the joint-stockcompany andothershareholdersof the joint-stockcompany,and that nonewoccupationof the joint-stockcompany willoccur.

violates theabovecommitments, the issuerhas the rightto demandcompensation from itowing toeconomiclosses causedto the issuer,and payliquidateddamages ofCNY 5million, andhave theright torequest theacquisition ofthe businessproject at themarket priceof thebusinessproject ortheestablishment cost price(whichever islower); 3.ThiscommitmentThe book willtake effectfrom thedate ofsigning andcannot berevokedwithout theconsent ofthe issuer.

each yearshall notexceed 25%of the totalnumber ofthe issuer'sshares heldby the issuer,and theissuer'sshares heldand theirchanges shallbe reportedto the issuerin a timelymanner.

number ofsharestransferredshall notexceed 50%of the totalshares of theBlue Allianceheld by mewithin 12months of sixmonths ofresignation

2.Where any profit forecast was made for any of the Company’s assets or projects and the current reportingperiod is still within the forecast period, the Company shall explain whether the performance of the asset orproject reaches the profit forecast and why:

□Applicable ?N/A

II. Non-operating capital occupation of listed companies by controlling shareholders and otherrelated parties

□Applicable ?N/A

No such case during the current reporting period.III. Illegal Provision of Guarantees for External Parties

□Applicable ?N/A

No such case during the current reporting period.

IV. Explanation of the board of directors on the latest ‘non-standard audit report’

□Applicable ?N/A

V. Explanation Given by the Board of Directors, Supervisory Committee and IndependentDirectors (if applicable) regarding the “Non-standard Auditor’s Report” Issued by the CPAFirm for the Current Reporting Period

□Applicable ?N/A

VI. For Changes in Accounting Policies, Accounting Estimates or Correction of SignificantAccounting Errors Compared with the Financial Report for the Prior Year

?Applicable □N/A

1. On October 25, 2023, the Ministry of Finance issued the "Interpretation No. 17 of the Enterprise AccountingStandards" (Finance [2023] No. 21, hereinafter referred to as "Interpretation No. 17"), which provides guidance onthe classification of current and non-current liabilities, disclosure of supplier financing arrangements, andaccounting treatment of sale and leaseback transactions. The company has adopted this interpretation startingfrom January 1, 2024. The implementation of this interpretation has no impact on the opening financial statements.

2. On December 6, 2024, the Ministry of Finance issued the "Interpretation No. 18 of the Enterprise AccountingStandards" (Finance [2024] No. 24, hereinafter referred to as "Interpretation No. 18"), which provides guidance onthe accounting treatment of guarantee-type quality assurances that do not constitute separate performanceobligations. The company has adopted this interpretation starting from January 1, 2024. The implementation ofthis interpretation has no impact on the opening financial statements.VII. Explanation of changes in the scope of consolidated statements compared with the financialreport of the previous year?Applicable □N/A

1. Set up subsidiaries

(1) The holding subsidiary Jiangsu Yangmi Liwei Distillery Co., Ltd. subscribed capital of CNY10 million to establishTibet Yangmiwei Distillery Co., Ltd., which has been included in the scope of consolidation for the consolidatedfinancial statements starting from January 2024.

(2) The holding subsidiary Jiangsu Yiguo Xiang Biotechnology Co., Ltd. subscribed capital of CNY2 million toestablish Suqian Yiguo Xiang Sales Co., Ltd., which has been included in the scope of consolidation for theconsolidated financial statements starting from June 2024.

(3) The holding subsidiary Jiangsu Yiguo Xiang Biotechnology Co., Ltd. subscribed capital of CNY1 million toestablish Hangzhou Yiguo Xiang Brand Operation Management Co., Ltd., which has been included in the scope ofconsolidation for the consolidated financial statements starting from February 2024.

(4) The company subscribed capital of CNY20 million to establish Hainan Yanghe Trading Co., Ltd., which has beenincluded in the scope of consolidation for the consolidated financial statements starting from July 2024.

2. Deregistration of Subsidiaries

(1) The holding subsidiary Jiangsu Shiyang Network Technology Co., Ltd. has completed its industrial andcommercial deregistration and has been excluded from the scope of consolidation for the consolidated financialstatements starting from November 2024.

(2) The holding subsidiary Jiangsu Yanghe Weiketang Network Technology Co., Ltd. has completed its industrial andcommercial deregistration and has been excluded from the scope of consolidation for the consolidated financialstatements starting from December 2024.

VIII. Engagement and Disengagement of the CPA firmCPA firm engaged at present

Whether to change the CPA firm in the current period

?Yes □NoWhether the accounting firm was changed during the audit period

□Yes ?No

Whether the change of accounting firm followed the approval procedures

?Yes □NoExplanation on the Change of Accounting Firm

In accordance with the relevant provisions on auditor rotation under the Measures for the Administration ofthe Selection and Appointment of Accounting Firms by State-Owned Enterprises and Listed Companies, thecompany changed its accounting firm. In June 2024, upon approval at the 2023 Annual General Meeting ofShareholders, it was resolved to appoint Zhongxi Certified Public Accountants LLP (Special General Partnership)as the company’s financial and internal control auditor for the year 2024.Engagement of internal control audit CPA firm, financial advisor or sponsor

?Applicable □N/A

During the reporting period, the Company hired Zhongxi CPA LLP. as the internal control audit accounting firm,and paid a total of CNY 471,200 of financial consulting fees during the period.IX. Facing delisting after annual report disclosure

□Applicable ?N/A

X. Bankruptcy and Restructuring

□Applicable ?N/A

No such case during the reporting period.

XI. Material Litigations and Arbitration

□Applicable ?N/A

The Company had no material litigation or arbitration during the current reporting period.XII. Punishment and rectification

□Applicable ?N/A

No such case during the reporting period.XIII. The integrity of the company and its controlling shareholders and actual controllers

□Applicable ?N/A

XIV. Significant Related-party Transactions

1. Related-party Transactions Arising from Routine Daily Operations

□Applicable ?N/A

No such case during the reporting period.

2. Related-party Transactions regarding Purchase and Disposal of Assets or Equity

□Applicable ?N/A

No such case during the reporting period.

3. Significant Related-party Transactions Arising from Joint Investments on External Parties

□Applicable ?N/A

No such case during the reporting period.

4. Related Credit and Debt Transactions

□Applicable ?N/A

No such case during the reporting period.

5. Transactions with related financial companies

□Applicable ?N/A

No such case during the reporting period.

6. Transactions between the financial company controlled by the company and related parties

□Applicable ?N/A

There is no deposit, loan, credit or other financial business between the financial company controlled by theCompany and its related parties.

7. Other significant related-party transactions

□Applicable ?N/A

The company has no other significant related transactions during the reporting period.

XV. Significant Contracts and Their Execution

1. Trusteeship, Contracting and Leasing

（1）Trusteeship

□Applicable ?N/A

No such case in the reporting period.

（2）Contracting

□Applicable ?N/A

No such case in the reporting period.

（3）Leasing

□Applicable ?N/A

No such case in the reporting period.

2. Significant Guarantees

□Applicable ?N/A

No such case in the reporting period.

3. Entrusting Others to Manage Cash Assets

(1) Entrusted financial management

?Applicable □N/AOverview of entrusted wealth management during the reporting period

Unit: CNY10, 000

managementproducts

Specific circumstances of high-risk entrusted wealth management with a single large amount or low security andlow liquidity?Applicable □N/A

Unit: CNY10, 000

No. 2021-044)

Entrust finance expected to be failed to recover principle or other situation leading to impairment?Applicable □N/A

(1) The “CITIC Trust Jiahe No. 118 Evergrande Guiyang New World Collective Fund Trust Plan” purchased by the company was extended. Based on the principle ofprudence, the company handled changes in fair value, and as of December 31, 2024, an impairment provision of CNY65,128,500 was recognized.(2) The companypurchased the “AVIC Trust ? Tianxin Bay Area Renewal No. 10 Collective Fund Trust Plan Phase 1” and “AVIC Trust ? Tianxin Bay Area Renewal No. 10 CollectiveFund Trust Plan Phase 2.” As of the end of the reporting period, the full principal of the aforementioned products had been recovered.

(2) Entrusted loan management

□Applicable ?N/A

No such case during the reporting period

4. Other major contracts

□Applicable ?N/A

No such case during the reporting periodXVI. Explanation of other significant matters

□Applicable ?N/A

No other significant matters that need to be explained exist during the reporting period.XVII. Significant Events of the Company's Subsidiaries

□Applicable ?N/A

Section VII Changes in Shares and Shareholders

I. Changes in shares

1. Table of Changes in Share Capital

Unit：share

Reason for share changes?Applicable □N/AThe main changes in shareholding are due to the changes in locked shares held by current and departingdirectors, supervisors, and senior management personnel.

Approval for changes in share capital

□Applicable ?N/A

Transfer for changes in share capital

□Applicable ?N/A

Effects of changes in share capital on the basic earnings per share ("EPS"), diluted EPS, net assets per shareattributable to common shareholders of the Company, and other financial indexes over the last year and lastperiod

□Applicable ?N/A

Other contents that the Company considers necessary or required by the securities regulatory authorities todisclose

□Applicable ?N/A

2. Changes in Restricted Shares

?Applicable □N/A

Unit：share

restrictions onsale will belifted inaccordancewith relevantregulations.

II. Issuance and Listing of Securities

1. Securities (exclude Preferred Share) Issued during the Reporting Period

□Applicable ?N/A

2. Explanation on Changes in Share Capital & the Structure of Shareholders, the Structure of Assets andLiabilities

□Applicable ?N/A

3. Existent Shares Held by Internal Staff of the Company

□Applicable ?N/A

III. Particulars about the Shareholders and Actual Controller

1. Total Number of Shareholders and Their Shareholdings

Unit：share

the annualreportdisclosuredate

China SecuritiesFinanceCorporationLimited

Bank of China Limited－E FundPremium Selected HybridSecurities Investment Fund

Stock lending situation of shareholders holding more than 5%, top 10 shareholders, and top 10 unrestrictedcirculating shareholders involved in margin trading and securities lending business

□Applicable ?N/A

Changes in Top 10 Shareholders and Top 10 Unrestricted Circulating Shareholders Due to SecuritiesLending/Repayment in Margin Trading.

□Applicable ?N/A

Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conductedany agreed buy-back in the reporting period?

□Yes ?No

No such case during the current reporting period.

2. Particulars about Controlling Shareholder of the Company

Nature of controlling shareholder: local state-owned holdingType of controlling shareholder: Corporation

iron, refined nickel-iron, nickel-chromiumpig iron, nickel-chromium ore, furnacecharge, steel,mechanical partscastings, light stabilizer944, light stabilizer 622,antioxidant 3114,organic fertilizers,compound fertilizers,chemical raw materials(excluding dangerousgoods), viscose staplefibers, cotton pulppellets, electric bicyclesand accessories,lithium batteries,hardware and electricalsales; sales of rawgrains; propertyleasing; industrialinvestment; municipalpublic works, buildingconstruction projects,tourism and culturalindustry investment(business activitiesshall be carried outwith the approval ofrelevant departmentsas required by law).General projects: salesof communicationequipment; sales ofoptical communicationequipment; sales ofelectronic products;sales of mobilecommunicationequipment; sales ofmobile terminalequipment; wholesaleof computer hardwareand auxiliaryequipment; softwaredevelopment;information systemintegration services(business activitiesshall be carried outindependently inaccordance with thebusiness license, except

for projects thatrequire approval bylaw).

Change of controlling shareholder during the reporting period

□Applicable ?N/A

The Company's controlling shareholder has not changed during the reporting period.

3. Particulars about the Company’s Actual Controller & Concerted Parties

Nature of actual controller: local state-owned assets management organizationActual controller type: Corporation

Change of the actual controller during the reporting period

□Applicable ?N/A

No such change during the reporting period.The ownership and controlling relationship between the actual controller of the Company and the Company isdetailed as follows:

The actual controller controls the company through trust or other asset management methods

□Applicable ?N/A

4. The Company's Controlling Shareholder or the Largest Shareholder and its Concerted Action Person'sCumulative Pledged Shares Account for 80% of the Company's Shares Held by Them

□Applicable ?N/A

5. Particulars about Other Corporate Shareholders with Shareholding Proportion over 10%?Applicable □N/A

6. Particulars on Shareholding Decrease Restrictions for the Controlling Shareholders, Actual Controller,Restructurer or Other Committing Parties

□Applicable ?N/A

IV. The specific implementation of share repurchases during the reporting periodThe implementation progress of share repurchases

□Applicable ?N/A

The implementation progress of reducing repurchased shares by centralized bidding

□Applicable ?N/A

Section VIII Preferred Shares

□Applicable ?N/A

There are no preferred shares in the company during the reporting period.

Section IX Bonds

□Applicable ?N/A

Section X Financial ReportI.Auditor’s report

Body of Audit ReportTo all the shareholders of Jiangsu Yanghe Distillery Co., Ltd.:

OpinionWe have audited the financial statements of Jiangsu Yanghe Distillery Co., Ltd. (hereinafter referredto as the “Company”), which comprise the consolidated balance sheet and balance sheet as at 31December 2024, consolidated income statement and income statement, consolidated cash flowstatement and cash flow statement, consolidated statement of changes in owners' equity andstatement of changes in owners' equity for the year then ended and notes to the financialstatements.In our opinion, the attached financial statements are prepared, in all material respects, in accordancewith Accounting Standards for Business Enterprises and present fairly the financial position of thecompany as at 31 December 2024 and its operating results and cash flow for the year then ended.Basis for opinionWe conducted our audit in accordance with China Standards on Auditing (“CSAs”) for CertifiedPublic Accountants. Our responsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We are independentof the Company in accordance with the Code of professional ethics for Certified Public Accountantsin China (“the Code”), and we have fulfilled our other ethical responsibilities in accordance withthe Code. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.Key audit mattersKey audit matters are those matters that, in our professional judgment, were of most significance inour audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of our audit of the consolidated financial statements as a whole and, informing our opinion thereon, and we do not provide a separate opinion on these matters.

is recognized after customeracceptance based on transfer ofcontrol. In 2024, the Company’sannual operating revenue wasCNY28.876 billion. The amountsubstantial and operating revenue isan important component of incomestatement. Therefore, we identifiedoperating revenue as a key auditmatter.

Other informationThe directors of the Company are responsible for the other information. The other informationcomprises the information included in the annual report, but does not include the financialstatements and our auditors report thereon.Our opinion on the financial statements does not cover the other information and we do not expressany form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in this regard.

Responsibilities of directors and those charged with governance for the financial statementsThe directors of the Company are responsible for the preparation of the financial statements thatgive a true and fair view in accordance with the disclosure requirements of Accounting Standardsfor Business Enterprises, and designing, implementing and maintaining internal control that isnecessary to ensure the financial statements are free from material misstatement, whether due tofraud or error.In preparing the financial statements, the directors are responsible for assessing the Company’sability to continue as a going concern, disclosing, as applicable, matters related to going concern andusing the going concern basis of accounting unless the directors either intend to liquidate theCompany or to cease operations, or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reportingprocess.

Auditor's responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with CSAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CSAs, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

(1) Identify and assess the risks of material misstatement of the financial statements, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.

(2) Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.

(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the directors.

(4) Conclude on the appropriateness of the directors’ use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the Company’s ability to continue as a going concern.If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or, if such disclosures are inadequate,to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor’s report. However, future events or conditions may cause the Company to cease tocontinue as a going concern.

(5) Evaluate the overall presentation, structure and content of the financial statements, includingthe disclosures, and whether the financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.

(6) Obtain sufficient and appropriate audit evidence regarding the financial information of theentities or business activities within the Company to express an opinion on the financial statements.We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.We also provide the governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable,related safeguards.From the matters communicated with the governance, we determine those matters that were ofmost significance in the audit of the consolidated financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor’s report unless law orregulation precludes public disclosure about the matter or when, in extremely rare circumstances,we determine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interest benefits ofsuch communication.

Zhongxi CPA LLP

CPA of China:

CPA of China:

Beijing, China 27 April 2025II. Financial statements

Consolidated balance sheet

Prepared by: Jiangsu Yanghe Distillery Co., Ltd.

As at 31 December 2024

Unit: CNY

Fixed assets

Total current liabilities

Legal representative: Zhang LiandongPerson in charge of accounting affairs: Yin QiumingPerson in charge of accounting department: Zhao Qike

Balance sheet of parent company

As at 31 December 2024

Unit: CNY

Cash and bank balances

Current liabilities:

Undistributed profits

Consolidated Income StatementFor the year ended 31 December 2024

Unit: CNY

Gains from the changes in fairvalues (“-“ for losses)

classified into profit and loss underequity method

Where an enterprise is merged under the same control in the current period, the net profit realized bythe merged party before the merger is: CNY 0.00, and the net profit realized by the merged party in theprevious period is: CNY 0.00.

Legal representative: Zhang LiandongPerson in charge of accounting affairs: Yin Qiuming

Person in charge of accounting department: Zhao Qike

Income statement of parent companyFor the year ended 31 December 2024

Unit: CNY

expenses

Others

Consolidated Statement of Cash FlowsFor the year ended 31 December 2024

Unit: CNY

investments from policyholders

Sub-total of cash inflows frominvesting activities

Cash flow statements of parent company

For the year ended 31 December 2024

Unit: CNY

3. Cash flows from financing activities

Consolidated statement of changes in shareholders' equity

For the year ended 31 December 2024

Unit: CNY

(2) Capital

contributed orreduced byowners

Conversion ofcapital reservesinto paid-in capital

Sharecapital

Capitalcontributions byother equityInstrumentsholders

Surplusreservesoffsetting losses